The document is a project report on employees' perceptions of performance appraisals at UFlex Limited. It includes an introduction to the company and HR department. The report aims to study employees' views of performance appraisals and how they can benefit organizations. Primary data was collected through surveys and from the HR department. The findings, conclusions, and recommendations are presented along with references. Performance appraisals are conducted annually to assess employees, provide feedback, and help improve performance and organizational goals.

1. EMPLOYEES PERCEPTION TOWARDS
PERFORMANCE APPRAISAL
AT
UFLEX LIMITED
Summer Internship Project Report Submitted towards Partial
Fulfilment of
Post Graduate Diploma in Management
(Approved by AICTE, Govt. of India)
Academic Session
2011 – 2013
Submitted By:
Under the Guidance of:
Industry Guide Faculty Guide
CERTIFICATE OF DECLARATION
1

2. I Ravi Shankar Dwivedy students of PGDM (2011-2013) 1st Year, Institute of Management
Studies, Ghaziabad, hereby declare that the project report on “Employees perception
towards performance appraisal at UFlex limited” has been done under the guidance and
involvement OF
…..................................................................................................................................................
............. for the period 20th April 2012 to 21st June 2012.
All information and data provided in this report are collected from primary and secondary
sources that are true to the best of my knowledge.
Date:
------------------------------
Student: Ravi Shankar Dwivedy
BM-011171
Institute of Management Studies, Ghaziabad.
PREFACE
2

3. Training is an integral part of our academic curriculum. During the training a student gets an
opportunity to set the practical aspects of theory. Training makes the concept clear and it gives the
perfect knowledge of the practical life.
This project is the outcome of the training that I have undergone for “EMPLOYEES PERCEPTION
TOWARDS PERFORMANCE APPRAISAL IN UFLEX LIMITED”.
Due to short span of time I analyzed a proper number of employees to fulfill my requirements of the
project work through questionnaire and personal interview.
I offer my courteous thanks to ….............................for their guidance and help which they provided
me while preparing this project report.
ACKNOWLEDGEMNT
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4. It gives us immense pleasure and satisfaction in expressing our gratitude towards all individuals who
have indirectly helped us in this project report.
Working on this project was an excitement challenge and a new exposure in the field of marketing at
the outset we would like acknowledge our special thanks to
…..................................................................................................................................................
.......................................... for his invaluable help and guidance without which this project would
not have been successful .
TABLE OF CONTENT
S.No. Topic Pages
1 Executive Synopsis 8-9
2 Introduction 10-24
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5. 3 Company Profile 25-36
4 Objective 37
5 Literature Review 38-45
6 Research Methodology 46-47
7 Finding and Analysis 48-57
8 Statistical Tool 58-65
9 Conclusion & Recommendation 66
10 Limitation 67
11 Bibliography 68
12 Annexure 69-70
Tables and Graphs
Fig & Topic Page
Tab. No. No.
Fig. 1 360 degree appraisal 17
Fig. 2 MBO process 18
Fig. 3 Potrait of Mr. Ashok Chaturvedi, Chairman, Uflex 27
Fig. 4 Process plant of engg. Divison 33
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6. Fig. 5 Process model of chemical plant 34
Fig. 6 Process plant of chemical divison 36
Fig. 7 Graph showing performance monitoring 49
Fig.8 Graph showing performance appraisal does not contribute to 50
job performance.
Fig.9 Graph showing performance goals are clearly defined in the 51
process of appraisal.
Fig. 10 Graph showing the performance appraisal is helpful in 52
reducing grievance among the employees.
Fig. 11 Graph showing I do not need feedback to monitor my 53
performance
Fig.12 Graph showing the performance appraisal is helpful for 54
improving personnel skill.
Fig. 13 Graph showing promotion is purely based on performance 55
appraisal.
Fig. 14 Graph showing appraisal increases career growth. 56
Fig. 15 Graph showing appraisal enhances the chances for promotion. 57
Table 1 Chi square on Performance appraisal improves job 58
performance.
Table 2 Chi square on the assessment of performance motivates to 60
work harder.
Table 3 Chi square on performance goals are clearly defined in the 62
process of appraisal.
Table 4 Chi square on performance appraisal provides me with the 64
opportunity to set personal goals.
EXECUTIVE SYNOPSIS
The report embarks on the introduction about the company that is profile of the company,
HR departments, its products and services, business and quality policies of UFLEX.
In today‘s competitive scenario, when ‗achiever more with less and in minimum time‘ is mantra to
success, every organization is using Performance Appraisal for their employees.
The project is undertaken to study the perception of employees towards Performance
Appraisal at UFLEX.
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7. Analysis helped to know that how the use of performance appraisals helpful for any of the
organization.
In order to know the impact of Performance , the survey questionnaire and the data provided
by the HR department was the primary source of data.
Then the report leads to findings, suggestions, learning and conclusions followed by
references at the end of the report.
The company profile is followed organization structure, introduction to the topic. i.e.
benefits and impact of performance appraisal in employees.. In today‘s era, performance
appraisal has become an integral part of organization and is playing its critical role in employees
performance.
Human resource management (HRM) conducts performance management. Performance
management systems consist of the activities and/or processes embraced by an organization
in anticipation of improving employee performance, and therefore, organizational
performance. Consequently, performance management is conducted at the organizational
level and the individual level whereas performance appraisal is for assessing employees to
know their strengths and weaknesses. It is done by HR managers to get the feedback of the
employees.
Performance appraisal is a systematic and periodic process that assesses an individual
employee‘s job performance and productivity in relation to certain pre-established criteria
and organizational objectives. Other aspects of individual employees are considered as well,
such as, accomplishments, potential for future improvement, strengths and weaknesses,
etc. To collect performance appraisal data, there are three main methods: objective
production, personnel, and judgmental evaluation. Judgmental evaluations are the most
commonly used with a large variety of evaluation methods. A performance appraisal is
typically conducted annually. The interview could function as ―providing feedback to
employees, counselling and developing employees, and conveying and discussing
compensation, job status, or disciplinary decisions‖. Performance appraisal is often included
in performance management systems. Performance management systems are employed ―to
manage and align" all of an organization's resources in order to achieve highest possible
performance.
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8. It facilitates the communication between the employees, enhances the employees to focus
through promoting trust. It helps in goal setting and determining the objectives and also to
enhance their performance. Performance appraisals are conducted at least annually, and
annual employee performance reviews appear to be the standard in most American
organizations. However, ―it has been acknowledged that appraisals conducted more
frequently (more than once a year) may have positive implications for both the organization
and employee.‖ It is suggested that regular performance feedback provided to employees
may quell any unexpected and/or surprising feedback to year-end discussions.
During the internship in Uflex limited I found that the employees are more focused towards
their work. And their performance shows their leniency towards work and how they are
making their selves to work in that competitive environment. As Uflex has their major
business in packaging sector so they need a huge number of employees to earn their goal
and to be capable to survive in the competitive world.
Numerous researchers have reported that many employees are not satisfied with their
performance appraisal (PA) systems. Studies have shown that subjectivity as well as
appraiser bias is often a problem perceived by as many as half of employees. Appraiser bias,
however, appears to be perceived as more of a problem in government and public sector
organizations. Also, according to some studies, employees wished to see changes in the PA
system by making ―the system more objective, improving the feedback process, and
increasing the frequency of review.‖
INTRODUCTION
DEFINITION
A performance appraisal is a systematic and periodic process that assesses an individual
employee‘s job performance and productivity in relation to certain pre-established criteria
and organizational objectives. Other aspects of individual employees are considered as well,
such as, accomplishments, potential for future improvement, strengths and weaknesses,
etc. To collect performance appraisal data, there are three main methods: objective
production, personnel, and judgmental evaluation. Judgmental evaluations are the most
commonly used with a large variety of evaluation methods. A performance appraisal is
typically conducted annually. The interview could function as ―providing feedback to
8

9. employees, counselling and developing employees, and conveying and discussing
compensation, job status, or disciplinary decisions‖. Performance appraisal is often included
in performance management systems. Performance management systems are employed ―to
manage and align" all of an organization's resources in order to achieve highest possible
performance. ―How performance is managed in an organization determines to a large extent
the success or failure of the organization. Therefore, improving performance appraisal for
everyone should be among the highest priorities of contemporary‖ organizations.
Some applications of performance appraisal are performance improvement, promotions,
termination, test validation, and more while there are many potential benefits of performance
appraisal, there are also some potential drawbacks. For example, performance appraisal can
help facilitate management-employee communication; however, performance appraisal may
result in legal issues if not executed appropriately as many employees tend to be unsatisfied
with the performance appraisal process. Performance appraisal created in and determined as
useful in the United States are not necessarily able to be transferable cross-culturally.
Applications of Performance Appraisal Results
A central reason for the utilization of performance appraisals is performance improvement
(―initially at the level of the individual employee, and ultimately at the level of the
organization‖). Other fundamental reasons include ―as a basis for employment decisions
(e.g. promotions, terminations, transfers), as criteria in research (e.g. test validation), to aid
with communication (e.g. allowing employees to know how they are doing and
organizational expectations), to establish personal objectives for training‖ programs, for
transmission of objective feedback for personal development, ―as a means of documentation
to aid in keeping track of decisions and legal requirements‖ and in wage and salary
administration. Additionally, Performance appraisal can aid in the formulation of job criteria
and selection of individuals ―who are best suited to perform the required organizational
tasks‖. A performance appraisal can be part of guiding and monitoring employee career
development. Performance appraisal can also be used to aid in work motivation through the
use of reward systems.
Potential Benefits of Performance Appraisals
There are a number of potential benefits of organizational performance management
conducting formal performance appraisals. There has been a general consensus in the belief
that Performance appraisal lead to positive implications of organizations. Furthermore,
Performance appraisal can benefit an organization‘s effectiveness. One way is performance
appraisals can often lead to giving individual workers feedback about their job
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10. performance. From this may spawn several potential benefits such as the individual workers
becoming more productive.
Other potential benefits include:
Facilitation of communication: communication in organizations is considered an essential
function of worker motivation. It has been proposed that feedback from Performance
appraisal aid in minimizing employees‘ perceptions of uncertainty. Fundamentally, feedback
and management-employee communication can serve as a guide in job performance
Enhancement of employee focus through promoting trust: behaviours, thoughts, and
issues may distract employees from their work, and trust issues may be among these
distracting factors. Such factors that consume psychological energy can lower job
performance and cause workers to lose sight of organizational goals.[9] Properly constructed
and utilized Performance appraisal has the ability to lower distracting factors and encourage
trust within the organization.
Goal setting and desired performance reinforcement: organizations find it efficient to
match individual worker‘s goals and performance with organizational goals. Performance
appraisal provides room for discussion in the collaboration of these individual and
organizational goals. Collaboration can also be advantageous by resulting in employee
acceptance and satisfaction of appraisal results.
Performance improvement: well constructed Performance appraisal can be valuable tools
for communication with employees as pertaining to how their job performance stands with
organizational expectations. ―At the organizational level, numerous studies have reported
positive relationships between human resource management (HRM) practices" and
performance improvement at both the individual and organizational levels.
Determination of training needs: ―Employee training and development are crucial
components in helping an organization achieve strategic initiatives‖. It has been argued that
for Performance appraisal to truly be effective, post-appraisal opportunities for training and
development in problem areas, as determined by the appraisal, must be offered. Performance
appraisal can especially be instrumental for identifying training needs of new employees.
Finally, Performance appraisal can help in the establishment and supervision of employees‘
career goals.
Potential Complications of Performance Appraisals
Despite all the potential advantages of formal performance appraisals, there are also potential
drawbacks. It has been noted that determining the relationship between individual job
performance and organizational performance can be a difficult task. Generally, there are two
overarching problems from which several complications spawn. One of the problem with
formal Performance Appraisals is there can be detrimental effects to the organization
involved if the appraisals are not used appropriately. The second problem with formal
10

11. performance appraisal is they can be ineffective if the performance appraisal system does not
correspond with the organizational culture and system.
Complications stemming from these issues are:
Detrimental to quality improvement: it has been proposed that the use of performance
appraisal systems in organizations adversely affect organizations‘ pursuits of quality
performance. It is believed by some scholars and practitioners that the use of Performance
appraisal is more than unnecessary if there is total quality management.
Negative perceptions: ―Quite often, individuals have negative perceptions of Performance
appraisal‖. Receiving and potentially cause ―tension between supervisors and subordinates‖.
Errors: Performance appraisal should provide accurate and relevant ratings of an employee‘s
performance as compared to pre-established criteria (i.e. organizational expectations).
Nevertheless, supervisors will sometimes rate employees more favourably than that of their
true performance in order to please the employees and avoid conflict. ―Inflated ratings are a
common malady associated with formal" performance appraisal.
Legal issues: When performance appraisal are not carried out appropriately, legal issues
could result that place the organization at risk. Performance appraisal are used in
organizational disciplinary programs [as well as for promotional decisions within the
organization. The improper application and utilization of Performance appraisal can affect
employees negatively and lead to legal action against the organization.
Performance goals: Performance goals and performance appraisal systems are often used in
association. Negative outcomes concerning the organizations can result when goals are overly
challenging or overemphasized to the extent of effecting ethnics, legal requirements, or
quality. Moreover, challenging performance goals can impede on employees‘ abilities to
acquire necessary knowledge and skills. Especially in the early stages of training, it would be
more beneficial to instruct employees on outcome goals than on performance goals.
Derail merit pay or performance-based pay: some researchers contend that the deficit in merit
pay and performance-based pay is linked to the fundamental issues stemming from
performance appraisal systems.
Who Conducts Performance Appraisals
Human Resource Management & Performance Management
Human resource management (HRM) conducts performance management. Performance
management systems consist of the activities and/or processes embraced by an organization
in anticipation of improving employee performance, and therefore, organizational
performance. Consequently, performance management is conducted at the organizational
level and the individual level. At the organizational level, performance management oversees
organizational performance and compares present performance with organizational
11

12. performance goals. The achievement of these organizational performance goals depends on
the performance of the individual organizational members. Therefore, measuring individual
employee performance can prove to be a valuable performance management process for the
purposes of HRM and for the organization. Many researchers would argue that ―performance
appraisal is one of the most important processes in Human Resource Management‖.
The performance management process begins with leadership within the organization
creating a performance management policy. Primarily, management governs performance by
influencing employee performance input (e.g. training programs) and by providing feedback
via output (i.e. performance assessment and appraisal). ―The ultimate objective of a
performance management process is to align individual performance with organizational
performance‖. A very common and central process of performance management systems is
performance appraisal. The performance appraisal process should be able to inform
employees about the ―organization's goals, priorities, and expectations and how well they are
contributing to them‖.
When Performance Appraisals are Conducted
Performance appraisals are conducted at least annually, and annual employee performance
reviews appear to be the standard in most American organizations. However, ―it has been
acknowledged that appraisals conducted more frequently (more than once a year) may have
positive implications for both the organization and employee.‖ It is suggested that regular
performance feedback provided to employees may quell any unexpected and/or surprising
feedback to year-end discussions. In a recent research study concerning the timeliness of
Performance appraisal, ―one of the respondents even suggested that the performance review
should be done formally and more frequently, perhaps once a month, and recorded twice a
year.‖
Other researchers propose that the purpose of Performance appraisal and the frequency of
their feedback are contingent upon the nature of the job and characteristics of the
employee. For example, employees of routine jobs where performance maintenance is the
goal would benefit sufficiently from annual performance appraisal feedback. On the other
hand, employees of more discretionary and non-routine jobs, where goal-setting is
appropriate and there is room for development, would benefit from more frequent
performance appraisal feedback.
Methods of Collecting Performance Appraisal Data
There are three main methods used to collect performance appraisal data: objective
production, personnel, and judgmental evaluation. Judgmental evaluations are the most
commonly used with a large variety of evaluation methods.
Objective production
12

13. The objective production method consists of direct, but limited, measures such as sales
figures, production numbers, the electronic performance monitoring of data entry workers,
etc. The measures used to appraise performance would depend on the job and its duties.
Although these measures deal with unambiguous criteria, they are usually incomplete
because of criterion contamination and criterion deficiency. Criterion contamination refers to
the part of the actual criteria that is unrelated to the conceptual criteria. In other words, the
variability in performance can be due to factors outside of the employee‘s control. Criterion
deficiency refers to the part of the conceptual criteria that is not measured by the actual
criteria. In other words, the quantity of production does not necessarily indicate the quality of
the products. Both types of criterion inadequacies result in reduced validity of the
measure. Regardless of the fact that objective production data is not a complete reflection
upon job performance, such data is relevant to job performance.
The Happy-Productive Worker Hypothesis
The happy-productive worker hypothesis states that the happiest workers are the most
productive performers, and the most productive performers are the happiest workers Yet,
after decades of research, the relationship between job satisfaction and job performance
produces only a weak positive correlation. Published in 2001 by Psychological Bulletin, a
meta-analysis of 312 research studies produced an uncorrected correlation of 0.18. This
correlation is much weaker than what the happy-productive worker hypothesis would predict.
There is no clear relationship between job satisfaction and job performance.
Personnel
The personnel method is the recording of withdrawal behaviors (i.e. absenteeism, accidents).
Most organizations consider unexcused absences to be indicators of poor job performance,
even with all other factors being equal;[ however, this is subject to criterion deficiency. The
quantity of an employee‘s absences does not reflect how dedicated he/she may be to the job
and its duties. Especially for blue-collar jobs, accidents can often be a useful indicator of poor
job performance, but this is also subject to criterion contamination because situational factors
also contribute to accidents. Once again, both types of criterion inadequacies result in
reduced validity of the measure. Although excessive absenteeism and/or accidents often
indicate poor job performance rather than good performance, such personnel data is not a
comprehensive reflection of an employee‘s performance.
Judgmental Evaluation
Judgmental evaluation appears to be a collection of methods, and as such, could be
considered a methodology. A common approach to obtaining Performance appraisal is by
means of raters. Because the raters are human, some error will always be present in the data.
The most common types of error are leniency errors, central tendency errors, and errors
13

14. resulting from the halo effect. These errors arise predominantly from social cognition and the
theory in that how we judge and evaluate other individuals in various contexts is associated
with how we ―acquire, process, and categorize information‖
An essential piece of this method is rater training. Rater training is the ―process of educating
raters to make more accurate assessments of performance, typically achieved by reducing the
frequency of halo, leniency, and central-tendency errors‖. Rater training also helps the raters
―develops a common frame of reference for evaluation‖ of individual performance many
researchers and survey respondents support the ambition of effectual rater training. However,
it is noted that such training is expensive, time consuming, and only truly functional for
behavioral assessments.
Another piece to keep in mind is the effects of rater motivation on judgmental evaluations. It
is not uncommon for rating inflation to occur due to rater motivation (i.e. ―organizationally
induced pressures that compel raters to evaluate ratees positively‖). Typically, raters are
motivated to give higher ratings because of the lack of organizational sanction concerning
accurate/inaccurate appraisals, the rater's desire to guarantee promotions, salary increases,
etc., the rater's inclination to avoid negative reactions from subordinates, and the observation
that higher ratings of the ratees reflect favorably upon the rater.
The main methods used in judgmental performance appraisal are:-
Graphic Rating Scale: graphic rating scales (see scale (social sciences)) are the most
commonly used system in performance appraisal. On several different factors, subordinates
are judged on 'how much' of that factor or trait they possess. Typically, the raters use a 5- or
7-point scale; however, there are as many as 20-point scales.
Employee-Comparison Methods: Rather than subordinates being judged against pre-
established criteria, they are compared with one another. This method eliminates central
tendency and leniency errors but still allows for halo effect errors to occur. The rank-order
method has raters ranking subordinates from ―best‖ to ―worst‖, but how truly good or bad one
is on a performance dimension would be unknown The paired-comparison method requires
the rater to select the two "best" subordinates out of a group on each dimension then rank
individuals according to the number of times each subordinate was selected as one of the
"best". The forced-distribution method is good for large groups of ratees. The raters evaluate
each subordinate on one or more dimensions and then place (or ‖force-fit‖, if you will) each
subordinate in a 5 to 7 category normal distribution. The method of top-grading can be
applied to the forced distribution method. This method identifies the 10% lowest performing
subordinates, as according to the forced distribution, and dismisses them leaving the 90%
higher performing subordinates.
Behavioural Checklists and Scales: behaviours are more definite than traits. The critical
incidents method (or critical incident technique) concerns ―specific behaviours indicative of
good or bad job performance‖. Supervisors record behaviours of what they judge to be job
14

15. performance relevant, and they keep a running tally of good and bad behaviours. A
discussion on performance may then follow. The behaviourally anchored rating
scales (BARS) combine the critical incidents method with rating scale methods by rating
performance on a scale but with the scale points being anchored by behavioural
incidents Note that BARS are job specific.
Peer and Self Assessments
While most judgmental performance appraisal research is evaluated by a superior (e.g.
supervisor, manager), peer assessments are evaluated by one‘s colleagues. With self-
assessments, individuals evaluate themselves.
Peer Assessments: members of a group evaluate and appraise the performance of their
fellow group members. There are three common methods of peer assessments. Peer
nomination involves each group member nominating who he/she believes to be the ―best‖ on
a certain dimension of performance. Peer ratings have each group member rate each other on
a set of performance dimensions. Peer ranking requires each group member rank all fellow
members from ―best‖ to ―worst‖ on one or more dimensions of performance.
Self-Assessments: for self-assessments, individuals assess and evaluate their own behavior
and job performance. It is common for a graphic rating scale to be used for self-assessments.
Positive leniency tends to be a problem with self-assessments.
360-Degree Feedback: 360-degree feedback is multiple evaluations of employees which
often include assessments from superior(s), peers, and one‘s self.
360 degree appraisal has four integral components:
1. Self appraisal.
2. Superior‘s appraisal
3. Subordinate‘s appraisal
4. Peer appraisal.
Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his
achievements, and judge his own performance. Superior‘s appraisal forms the traditional part
of the 360 degree performance appraisal where the employees‘ responsibilities and actual
performance is rated by the superior.
15

16. Subordinates appraisal gives a chance to judge the employee on the parameters like
communication and motivating abilities, superior‘s ability to delegate the work, leadership
qualities etc. Also known as internal customers, the correct feedback given by peers can help to
find employees‘ abilities to work in a team, co-operation and sensitivity towards others.
Fig.1
Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree a
360 degree performance appraisal is also a powerful developmental tool because when
conducted at regular intervals (say yearly) it helps to keep a track of the changes others‘
perceptions about the employees. A 360 degree appraisal is generally found more suitable for
the managers as it helps to assess their leadership and managing styles. This technique is
being effectively used across the globe for performance appraisals. Some of the organizations
following it are Wipro, Infosys, and Reliance Industries etc.
The concept of ‗Management by Objectives‘ (MBO) was first given by Peter Drucker in
1954. It can be defined as a process whereby the employees and the superiors come together
to identify common goals, the employees set their goals to be achieved, the standards to be
taken as the criteria for measurement of their performance and contribution and deciding the
course of action to be followed.
The essence of MBO is participative goal setting, choosing course of actions and decision
making. An important part of the MBO is the measurement and the comparison of the
employee‘s actual performance with the standards set. Ideally, when employees themselves
16

17. have been involved with the goal setting and the choosing the course of action to be
followed by them, they are more likely to fulfill their responsibilities.
THE MBO PROCESS
Fig.2
UNIQUE FEATURES AND ADVANTAGES OF MBO
The principle behind Management by Objectives (MBO) is to create empowered employees
who have clarity of the roles and responsibilities expected from them, understand their
objectives to be achieved and thus help in the achievement of organizational as well as
personal goals.
17

18. Some of the important features and advantages of MBO are:
Clarity of goals – With MBO, came the concept of SMART goals i.e. goals that are:
● Specific
● Measurable
● Achievable
● Realistic, and
● Time bound.
The goals thus set are clear, motivating and there is a linkage between organizational goals
and performance targets of the employees.
The focus is on future rather than on performance appraisalt. Goals and standards are set for
the performance for the future with periodic reviews and feedback.
Motivation – Involving employees in the whole process of goal setting and increasing
employee empowerment increases employee job satisfaction and commitment.
Better communication and Coordination – Frequent reviews and interactions between
superiors and subordinates helps to maintain harmonious relationships within the enterprise
and also solve many problems faced during the period.
Critical incident method of performance appraisal
1. Definition of Critical incident method
Critical incident is a method used for many sectors.
Critical incident method- Recording of events by appraiser. An incident is critical when it
illustrates what the employers has done or failed to do
The critical incidents for performance appraisal are a method in which the manager writes
down positive and negative performance behavior of employees throughout the
performance period.
Each employee will be evaluated as such and one‘s performance appraisal will be based on
the logs that are put in the evaluation form.
The manager maintains logs on each employee, whereby he periodically records critical
incidents of the workers behavior.
At the end of the rating period, these recorded critical incidents are used in the evaluation of
the workers‘ performance.
The critical incidents file of performance appraisal is a form of documentation that reflect
all data about employee performances.
2. Disadvantages of critical Incident
This method suffers however from the following limitations:
● Critical incidents technique of evaluation is applied to evaluate the performance
of superiors rather than of peers of subordinates.
● Negative incidents may be more noticeable than positive incidents.
18

19. ● It results in very close supervision which may not be liked by the employee.
● The recording of incidents may be a chore for the manager concerned, who may be
too busy or forget to do it.
● The supervisors have a tendency to unload a series of complaints about incidents
during an annual performance review session.
Weighted checklist
1. Definition of weighted checklist
This method describes a performance appraisal method where rater familiar with the jobs
being evaluated prepared a large list of descriptive statements about effective and
ineffective behavior on jobs.
2. Process of weighted checklist
HR department and Managers / Supervisors will set up checklist for each position.
If the rater believes strongly that the employee possesses a particular listed trait, he checks
the item; otherwise, he leaves the item blank.
3. Sample of weighted checklist
● Does he give respect to his superiors? Yes/No
● Does he follow instructions properly? Yes/No
● Does he make mistakes frequently? Yes/No
The value of each question may be weighted equally or certain questions may be weighted
more heavily than others.
4. Advantages and disadvantages of weighted checklist
● This method help the manager in evaluation of the performance of the employee.
● The rater may be biased in distinguishing the positive and negative questions. He
may assign biased weights to the questions.
● This method also is expensive and time consuming.
● It becomes difficult for the manager to assemble, analyze and weigh a number of
statements about the employee‘s characteristics, contributions and behaviors.
Paired comparison analysis
1. Definition of paired comparison analysis
● Paired comparison analysis is a good way of weighing up the relative importance of
options.
● A range of plausible options is listed. Each option is compared against each of the
other options. The results are tallied and the option with the highest score is the
preferred option.
2. Advantages and disadvantages of paired comparison analysis
● It is useful where priorities are not clear.
● It is particularly useful where you do not have objective data to base this on.
● It helps you to set priorities where there are conflicting demands on your resources.
● This makes it easy to choose the most important problem to solve, or select the
19

20. solution that will give you the greatest advantage.
3. Steps to conduct paired comparison analysis
● List the options you will compare (elements as A, B, C, D, E for example).
● Create a table 6 rows and 7 column.
● Write down option to column and row; A to row second, cell first from left and A to
row first, cell second from left; B to row third, cell first from left and B to row first,
cell third from left etc; column seventh is total point.
● Identify importance from 0 (no difference) to 3 (major difference).
● Compare element ―A‖ to B, C, D, E and place ―point‖ at each cell.
● Finally, consolidate the results by adding up the total of all the values for each of the
options. You may want to convert these values into a percentage of the total score.
4. Paired comparison in performance appraisal
● The term used to describe an appraisal method for ranking employees.
● We use the above model to appraise employee‘ s performance.
Definition of the rating scales
The Rating Scale is a form on which the manager simply checks off the employee‘s level
of performance. This is the oldest and most widely method used for performance appraisal.
The scales may specify five points, so a factor such as job knowledge might be rated 1
(poorly informed about work duties) to 5 (has complete mastery of all phases of the job).
Content of appraisal
• Quantity of work. Volume of work under normal working conditions
• Quality of work. Neatness, thoroughness and accuracy of work Knowledge of job.
• Dependability. Conscientious, thorough, reliable, accurate, with respect to attendance,
relief, lunch breaks, etc.
• Judgment
• attitude. Exhibits enthusiasm and cooperativeness on the job
• Cooperation . Willingness and ability to work with others to produce desired goals.
• Initiative.
Rating scales
Rating scales can include 5 elements as follows:
● Unsatisfactory
● Fair
● Satisfactory
● Good
● Outstanding
Advantages of the rating scales
● Graphic rating scales are less time consuming to develop.
● They also allow for quantitative comparison.
20

21. Disadvantages of the rating scales
● Different supervisors will use the same graphic scales in slightly different ways.
● One way to get around the ambiguity inherent in graphic rating scales is to use
behavior based scales, in which specific work related behaviors are assessed.
● More validity comparing workers ratings from a single supervisor than comparing
two workers who were rated by different supervisors.
Essay evaluation method in performance appraisal
1. Definition of essay evaluation
● This method asked managers / supervisors to describe strengths and weaknesses of
an employee‘s behavior. Essay evaluation is a non-quantitative technique
● This method usually use with the graphic rating scale method.
2. Input of information sources
● Job knowledge and potential of the employee;
● Employee‘s understanding of the company‘s programs, policies, objectives, etc.;
● The employee‘s relations with co-workers and superiors;
● The employee‘s general planning, organizing and controlling ability;
● The attitudes and perceptions of the employee, in general.
3. Disadvantages of essay evaluation
● Manager / supervisor may write a biased essay.
● A busy rater may write the essay hurriedly without properly assessing the actual
performance of the worker.
● Apart from that, rater takes a long time, this becomes uneconomical from the view
point of the firm, because the time of rater is costly.
● Some evaluators may be poor in writing essays on employee performance. Others
may be superficial in explanation and use flowery language which may not reflect
the actual performance of the employee.
21

22. Forced ranking (forced distribution)
Forced ranking method of performance appraisal to rank employee but in order of forced
distribution. For example, the distribution requested with 10 or 20 percent in the top
category, 70 or 80 percent in the middle, and 10 percent in the bottom. The top-ranked
employees are considered ―high-potential‖ employees and are often targeted for a more
rapid career and leadership development programs.
In contrast, those ranked at the bottom are denied bonuses and pay increases. They may be
given a probationary period to improve their performance.
Uflex ltd.
Company Profile
After Pioneering the growth of the flexible packaging industry in India, Uflex has gained an
unchallenged identity. Since its inception in the year 1983 it has turned into a multibillion
company that values quality and customer satisfaction amongst other priorities. With
consumers spread across the world, Uflex enjoys a global reach. Headquartered in Noida
(National Capital Region, New Delhi) it has state of the art manufacturing facilities in India &
Dubai. It has also established offices in UAE, Europe, North America and enjoys a formidable
market presence in more than 85 countries.
Uflex facility enjoys ISO 9001 and ISO 14001 certifications and has FDA and BGA approvals for their
22

23. products. It is also a part of the D&B Global Database and winner of various prestigious national and
international awards like the top exporter of BOPET and BOPP films, and the Worldstar award for
packaging excellence. FPA, AIMCAL and the DUPONT Awards in 2004-2005 are the latest in this
series.
Being a multi faceted organization it has integrated its operations from manufacture of Polyester chips,
Films (BOPET, BOPP and CPP - both in plain and metalized form), Coated Film, Laminates, Pouches,
Holographic films Gravure cylinders, Inks and adhesives to all types of packaging & printing machines,
offering total flexible packaging solution.
Uflex has always been committed to the industry by providing technical know-how and being the trend-
setter in the flexible packaging industry . Being on the edge of innovation, Uflex endeavors to be the
first to come up with advanced products that cater to the changing demands of the packaging industry.
As part of the Uflex Group, it has over twenty years of experience in polymer technology. Setting
milestones of success and innovation, Uflex is widely known for manufacturing and supplying
products, delivering apt services around the world.
Chairman’s Vision
23

24. Welcome to UFLEX - a world of complete flexible packaging solutions created with you at the
centre.
With you at the centre we conceptualized an enterprise that has taken us to strategic locations
across the globe so that you find us closer in terms of ideas, markets, challenges, solutions and
services. Today, we are available for you just around the corner, around the world.
Putting you at the centre has also helped us evolve a corporate culture, flexible enough to
respond to your demands and accommodate your needs. It has helped us to adapt our global
industry insights to create solutions that keep your goals in focus. So across the world, you will
find dealing with us as comfortable as with your local partner, yet backed with the formidable
technological know-how of global players.
Thinking of you has made us invest in the best inputs on the entire range of the flexible
packaging spectrum. It also helps us offer the right mix of competencies from the entire range
of possibilities on the flexible packaging spectrum, so that you get precisely what you need,
whenever you need it. All this has added up to an edge that gives you access to not only the
perfect product but also the complete process consultancy. This helps you derive the maximum
mileage out of the products that we engineer for you. It's a distinction that can be brought to
you only by the people who know every link of the flexible packaging chain inside out.
So bring us a flexible packaging challenge and take back a relationship – a relationship with an
unparalleled competitive and innovative edge.
Chairman’s Profile
24

25. Fig.3
The founder Chairman and Managing Director of The UFLEX Group, Mr. Ashok Chaturvedi,
pioneered the growth of Flexible Packing industry in India. He is hailed as the leader of this
fast growing segment of packaging business in India.
Mr. Chaturvedi's progressive thinking made him conscious of the need to offer solutions for
Flexible Packaging and this led to the inception of a company for manufacturing packaging
materials.
Exhibiting inspiring innovativeness and entrepreneurial skills, Mr. Chaturvedi applied the latest
international technologies for tailoring and designing packing material which adapted to the
needs of the customers, winning markets globally.Appreciating the customer's needs for
quality, prompt delivery and service, he decided to integrate backwards in the manufacture.
Board Of Directors
25

26. Name of the Director
Shri Ashok Chaturvedi - Chairman & Managing Director
Shri Ravi Kathpalia
Shri M.G. Gupta
Shri A. Karati - ICICI Nominee
Shri N K Duggal - IFCI Nominee
Shri S.K. Kaushik - Whole-time Director
Committee Of Directors
MEMBERS OF :
Audit Committee:
1. Shri Ravi Kathpalia – Chairman
2. Shri M.G. Gupta
3. Shri A. Karati
Remuneration Committee
1. Shri M.G. Gupta – Chairman
2. Shri Ravi Kathpalia
26

27. 3. Shri A. Karati
Shareholders’/Investors’ Grievance Committee
1. Shri Ravi Kathpalia – Chairman
2. Shri M.G. Gupta
3. Shri S.K. Kaushik
MILESTONES
September 1983:- Formation of the flex group of companies.
May 1984:- Formation of Flex Engineering Limited.
December 1985:- Formation of FCL Technologies and Product limited.
June 1988:- Formation of Uflex Limited. FIL is the largest manufacturer of polyester,
polypropylene, and metallised films in India.
February 1990:- Formation of Flex Food Limited for mushroom plantation.
November 1994:- Launched the operation of First Line for the production of BOPET films
under production capacity: 20,000 TPA.
January 1996:- Launched the operation of Second Line for the production of BOPET films
under production capacity: 20,000 TPA.
June 1996:- Launched the operation of First Line for the production of BOPP films. Production
capacity: 20,000 TPA.
January 1997:- Commercial production of Polyethylene Teraphthalate chips started.
June 1991:- M/s UFLEX America Incorporated, located in North Califoria, U.S.A., formed as a
wholly owned subsidiary of M/s UFLEX Limited.
June 2002:- First Metallizer with a capacity of 6,000 TPA installed.
March 2003:- Cast Polyporpylene film line with a capacity to produce 6,000 TPA installed to
produce CPP films.
October 2003:- Second Metallizer with a capacity of 6,000 MT/annum was installed.
December 2003:- Launched the operation of the second line for production of BOPP films with
a capacity of 15,000 MT/annum.
27

28. April 2004:- Launched the operation of the third line for the production of BOPET Films with
a capacity of 20,000 MT/annum.
July 2004:- A third metallizer with a capacity of 6,000 TPA was installed in Jabel Ali Fee
Zone, UAE.
March 2005:- A state of art polyester line with a capacity of 20,000 TPA was setup in Jabel Ali
Fee Zone, UAE.
July 2005:- A fourth Metallizer, with a capacity of 6000 TPA was installed with plasma
treatment facility.
October 2007:- Launched the operation of Fifth line, 8.7 metres wide for the production of
BOPET films with a capacity of 25000 MT/annum.
October 2007:- Launched the operation of 1.85 metres wide Thermal Lamination Machine for
the production of Thermal Lam BOPP film with a capacity of 3600 TPA.
November 2007:- Production of shrink sleeves a new concept in packaging (Heat shrink and
cold seal) started.
December 2007:- New packaging and Holography plant was started in Jammu.
January 2008:- New WPP plant was started in Noida.
28

29. BUSINESS DIVISON
FILM DIVISON
INTRODUCTION
UFLEX Limited, the India-based flexible packaging giant, began its existence nearly two
decades ago and has come a long way since then offering a vast array of innovative products
and services that enrich life, improve performance and create value for the customers and
shareholders.
With a vision to ―Progress with Distinction‖, UFLEX is privileged to contribute to society by
producing a variety of sophisticated products, on state-of-the-art imported equipment and
machines, improving the quality of life for people across the globe.
We manufacture in-house Polyester chips, BOPET / BOPP / COATED / METALLISED / CPP
Films, Packaging machines, converting equipment, inks, adhesives, Flexible Laminates and
Pouches and have emerged as a ―one stop shop‖ committed to providing customers with
competitive advantage, placing top priority to ―customer success‖.
We, at the Film Division of UFLEX Limited, are one of the largest manufacturer, supplier and
exporter of a variety of Plastic Films in the world.
With consistent quality, production expertise, continuous innovation in products and
technologies, a dedicated work force and a highly motivated corporate team, the Flex group is
expanding at an immense pace.
We invite you to take a look at our wide range of products by browsing through these pages
and then give us a chance to help you.
We‘ll make sure to be there for you any time, every time!
29

30. HOLOGRAPHY DIVISON
Holography Division is a professionally managed division of UFlex Ltd., focusing on the
production of top-of-the-line holographic products.
At UFlex holographic division, our goal is to deliver quality that will ensure the confidence of
our discerning buyers globally and become a benchmark for others. We will be
uncompromising in our adherence to excellence at every stage of production, from the
selection of raw materials to final product delivery.
Equipped with state-of-the-art manufacturing facilities and technology tie-ups with world
leaders, provide an access to leading innovations in the industry, hence ensure latest technology
and processes in place.
Entire supply-chain is attuned to ensure minimum lead-time for execution of large orders, offer
customization of products based on buyer specifications and an assurance of innovation and
flexibility in product design.
R & D: With a strong foothold in innovating products and design, research & development of
holography division is committed to refine and upgrade the processes and products being
manufactured. Our fully equipped research laboratory is a result of core technical strength &
commitments to manufacturing holography and related products.
.
In addition maximum emphasis is placed on security of making of hologram housekeeping and
hygiene in relation to materials, processes, storage and handling. Moreover all environmental
laws, guidelines and commitments are unfailingly adhered to.
All emissions kept below permissible levels
Minimal process waste generation - Almost all products made from eco-friendly materials
Continuous employee education and motivation
Secured execution & delivery of any job is an important pillar in holographic industry. Flex has
ensured the same by installing, card access system bio-matrix technology (Thumb Recognition
System), fully trained in-house armed guards to restrict any unauthorized entry to the facilities
and maintain high-level security zone.
ENGINEERING DIVISON
30

31. UFLEX Limited - Coverting Division engaged in the business of Packaging and Converting
Machines, established in Noida(adjacent to the national capital, New Delhi, India) in 1984, is
an integral part of UFLEX Group of companies.The UFLEX group commenced its operations
with a small investment and a pioneering spirit in 1983. Today, it is one of the leading
corporate houses in the Asia Pacific Region offering, among the other things, a single window
Total Packaging Solutions.
Fig 4
Our Vision
"Safer Living Thru Better Packaging"
A better packaging helps deliver a better product to the consumer. To emerge as a world
leader, in providing Total Flexible Packaging Solutions inspired by Total Customer
Satisfaction.
CONVERTING DIVISON
UFLEX Ltd provides complete integrated packaging solutions, right from design to delivery.
31

32. Catering to the specific need for Laminates and Pouches of each customer by constantly
redefining cost effective packaging options, is the only tradition of service known to UFLEX.
With almost 2 decades of experience in Flexible Packaging and significant investments, we
have perfected our processes and technology to produce high quality Flexible Packaging
Materials on time and within budgets.To ensure superior quality and timely delivery we have
achieved full backward integration. Our in-company divisions and group companies located
nearby produce all critical inputs, like the BOPET and BOPP films, Inks, Adhesives and
substrates, Holographic Films, Metalisation facility, Blown Film and other such raw materials.
Fig 5
Through our innovations in packaging, we have even helped our customers resolve a variety of
problems. A few such cases are quoted below:
An auto major had serious problem in combating spurious spares. We designed very special
Laminates with holographic designs incorporating the company's logo. This eliminated the
problem almost immediately raising the sales to three times within a year.
A bed mattress manufacturer had no brand recognition inspite of giving the best quality,
because of duplication. When all methods failed to contain this piracy, UFLEX Engineering
Division created a Gravure printed pouch measuring 36"x96". The problem was nipped and the
brand established its leadership in the market .
A leading snack food manufacturer sold a popular snack in 400gms packing. The quantity was
too much for a person to finish in one go. But the snack needed to be sold in the 400gm packs.
Uflex Zipouch division designed a reclosable pouch with zipper. The buyer could eat as much
as desired and then seal the pack for reuse later.
CYLINDER DIVISON
UFLEX (An ISO 9000 certified company) is one of the key players in the global packaging
industry. UFLEX a dynamic and creative organization, today offers a reliable single window
access to almost everything related to flexible packaging. Printing Cylinder is one of the major
32

33. products.
Since its inception, the team has been driving hard to master each link in the chain of flexible
packaging development and production. As a result of this drive started manufacturing
rotogravure Cylinders in the year 1986 and today boasts of a production capacity of over
35,000 cylinders per annum.
CHEMICAL DIVISON
Breaking through with exciting new innovations in the flexible packaging is part of the
intrinsic value system at UFLEX Chemical Division. By offering a wide spectrum of colourful
inks along with the requisite range of adhesives, Chemical Division adds a whole new
33

34. dimension to flexible packaging.
Fig 6
Chemical Dision , is part of the UFLEX Limited -name that is synonymous with the flexible
packaging revolution in India, providing complete flexible Packaging solutions to over 60
countries. Today the UFLEX Group has Asia's largest state-of-the-art packaging plant and
allied infrastructure at NOIDA (U.P.) spread over 70 acres.
Uflex Chemical Division has established a US $ 6.5 million manufacturing facility at NOIDA
(U.P) with ongoing technology transfer agreements with M/s. Color Converting Industries,
U.S.A. and M/s. Sunkyong Industries Limited, South Korea-a Fortune 500 company. UFLEX
Chemical Division also has an in-house Research & Development laboratory, approved and
recognised by the Department of Science and Technology, Government of India. This research
facility is manned by a dedicated team comprising of some of the best scientific minds in the
business.
UFLEX Chemical Division , an ISO 9001 certified company, is strongly focused on delivering
the highest standards of quality with the single-minded intent of ensuring total customer
satisfaction - over and over again. Every employee is completely committed to the
organisation's goals, towards quality & service.
OBJECTIVES
● To find out the perception of employees towards performance appraisal.
● To study the impact of performance appraisal on employee‘s performance.
34

35. LITERATURE REVIEW
Organizational Citizenship Behaviour
35

36. Also referred to as contextual behaviour, prosaically behaviour, and extra-role
behaviour, organizational citizenship behaviour (OCB) consists of employee behaviour that
contributes to the welfare of the organization but is beyond the scope of the employee‘s job
duties. These extra-role behaviours may help or hinder the attainment of organizational goals.
Research supports five dimensions of OCB: altruism, conscientiousness, courtesy,
sportsmanship, and civic virtue. Researchers have found that the OCB dimensions of altruism
and civic virtue can have just as much of an impact on manager‘s subjective evaluations of
employees‘ performances as employees‘ objective productivity levels. The degree to which
OCB can influence judgments of job performance is relatively high. Controversy exists as to
whether OCB should be formally considered as a part of performance appraisal (PA).
Performance Appraisal Interviews
The performance appraisal (PA) interview is typically the final step of the appraisal
process. The interview is held between the subordinate and supervisor. The PA interview can
be considered of great significance to an organization‘s PA system. It is most advantageous
when both the superior and subordinate participate in the interview discussion and establish
goals together. Three factors consistently contribute to effective PA interviews: the
supervisor‘s knowledge of the subordinate‘s job and performance in it, the supervisor‘s
support of the subordinate, and a welcoming of the subordinate‘s participation.
Employee Reactions to Performance Appraisal
Numerous researchers have reported that many employees are not satisfied with their
performance appraisal (PA) systems. Studies have shown that subjectivity as well as
appraiser bias is often a problem perceived by as many as half of employees. Appraiser bias,
however, appears to be perceived as more of a problem in government and public sector
organizations. Also, according to some studies, employees wished to see changes in the PA
system by making ―the system more objective, improving the feedback process, and
increasing the frequency of review.‖ In light of traditional PA operation defects,
―organizations are now increasingly incorporating practices that may improve the system.
These changes are particularly concerned with areas such as elimination of subjectivity and
bias, training of appraisers, improvement of the feedback process and the performance review
discussion.‖
According to a meta-analysis of 27 field studies, general employee participation in his/her
own appraisal process was positively correlated with employee reactions to the PA
system. More specifically, employee participation in the appraisal process was most strongly
related to employee satisfaction with the PA system. Concerning the reliability of employee
reaction measures, researchers have found employee reaction scales to be sound with few
concerns through using a confirmatory factor analysis that is representative of employee
reaction scales.
36

37. Researchers suggest that the study of employees‘ reactions to PA is important because of two
main reasons: employee reactions symbolizes a criterion of interest to practitioners of
Performance appraisal and employee reactions have been associated through theory to
determinants of appraisal acceptance and success. Researchers translate these reasons into the
context of the scientist-practitioner gap or the ―lack of alignment between research and
practice.‖
Performance Appraisal and Legal Implications
There are federal laws addressing fair employment practices, and this also concerns
performance appraisal (PA). Discrimination can occur within predictions of performance and
evaluations of job behaviors. The revision of many court cases has revealed the involvement
of alleged discrimination which was often linked to the assessment of the employee‘s job
performance. Some of the laws which protect individuals against discrimination are ―the Title
VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in
Employment Act (ADEA), and the Americans with Disabilities Act (ADA).‖ Lawsuits may
also results from charges of an employer‘s negligence, defamation, and/or
misrepresentation. A few appraisal criteria to keep in mind for a legally sound PA is to keep
the content of the appraisal objective, job-related, behaviour-based, within the control of the
ratee, and related to specific functions rather than a global assessment. Some appraisal
procedure suggestions for a legally sound PA is to standardize operations, communicate
formally with employees, provide information of performance deficits and give opportunities
to employees to correct those deficits, give employees access to appraisal results, provide
written instructions for the training of raters, and use multiple, diverse and unbiased
raters. These are valuable but not exhaustive lists of recommendations for Performance
appraisal.
Cross-Cultural Implications of Performance Appraisal
Performance appraisal (PA) systems, and the premises of which they were based, that have
been formed and regarded as effective in the United States may not have the transferability
for effectual utilization in other countries or cultures, and vice versa. Performance ―appraisal
is thought to be deeply rooted in the norms, values, and beliefs of asociety‖. ―Appraisal
reflects attitudes towards motivation and performance (self) and relationships (e.g. peers,
subordinates, supervisors, organization), all of which vary from one country to the next‖.
Therefore, appraisal should be in conjunction with cultural norms, values, and beliefs in order
to be operative. The deep-seated norms, values and beliefs in different cultures affect
employee motivation and perception of organizational equity and justice. In effect, a PA
system created and considered effectual in one country may not be an appropriate assessment
in another cultural region.
37

38. For example, some countries and cultures value the trait of assertiveness and personal
accomplishment while others instead place more merit on cooperation and interpersonal
connection. Countries scoring high on assertiveness consider PA to be a way of assuring
equity among employees so that higher performing employees receive greater rewards or
higher salaries. Countries scoring low on assertiveness but higher in interpersonal relations
may not like the social separation and pay inequity of higher/lower performing employees;
employees from this more cooperative rather than individualistic culture place more concern
on interpersonal relationships with other employees rather than on individual interests. High
assertive countries value performance feedback for self-management and effectiveness
purposes while countries low in assertiveness view performance feedback as ―threatening and
obtrusive‖. In this case, the PA of the high assertive countries would likely not be beneficial
for countries scoring lower in assertiveness to employ. However, countries scoring lower in
assertiveness could employ PA for purposes of improving long-term communication
development within the organization such as clarifying job objectives, guide training and
development plans, and lessen the gap between job performance and organizational
expectations.
Perception (from the Latin perceptio, percipio) is the organization, identification, and
interpretation of sensory information in order to fabricate a mental representation through the
process of transduction, which sensors in the body transform signals from the environment
into encoded neural signals. All perception involves signals in the nervous system, which in
turn result from physical stimulation of the sense organs. For example, vision
involves light striking the retinas of the eyes, smell is mediated by odor molecules and
hearing involves pressure waves. Perception is not the performance appraisalsive receipt of
these signals, but can be shaped by learning, memory and expectation. Perception involves
these "top-down" effects as well as the "bottom-up" process of processing sensory input. The
"bottom-up" processing is basically low-level information that's used to build up higher-level
information (i.e. - shapes for object recognition). The "top-down" processing refers to a
person's concept and expectations (knowledge) that influence perception. Perception depends
on complex functions of the nervous system, but subjectively seems mostly effortless because
this processing happens outside conscious awareness.
Since the rise of experimental psychology in the late 19th Century, psychology's
understanding of perception has progressed by combining a variety of
techniques. Psychophysics measures the effect on perception of varying the physical qualities
of the input. Sensory neurosciencestudies the brain mechanisms underlying perception.
Perceptual systems can also be studied computationally, in terms of the information they
process. Perceptual issues in philosophy include the extent to which sensory qualities such as
sounds, smells or colors exist in objective reality rather than the mind of the perceiver.
Although the senses were traditionally viewed as performance appraisalsive receptors, the
study of illusions and ambiguous images has demonstrated that the brain's perceptual systems
actively and pre-consciously attempt to make sense of their input. There is still active debate
about the extent to which perception is an active process of hypothesis testing, analogous
38

39. to science, or whether realistic sensory information is rich enough to make this process
unnecessary.
The perceptual systems of the brain enable individuals to see the world around them as stable,
even though the sensory information may be incomplete and rapidly varying. Human and
animal brains are structured in a modular way, with different areas processing different kinds
of sensory information. Some of these modules take the form of sensory maps, mapping some
aspect of the world across part of the brain's surface. These different modules are
interconnected and influence each other. For instance, the taste is strongly influenced by its
odor.
Process and terminology
The process of perception begins with an object in the real world, termed the distal
stimulus or distal object. By means of light, sound or another physical process, the object
stimulates the body's sensory organs. These sensory organs transform the input energy into
neural activity—a process called transduction. This raw pattern of neural activity is called
the proximal stimulus. These neural signals are transmitted to the brain and processed. [2] The
resulting mental recreation of the distal stimulus is the percept. Perception is sometimes
described as the process of constructing mental representations of distal stimuli using the
information available in proximal stimuli.
An example would be a person looking at a shoe. The shoe itself is the distal stimulus. When
light from the shoe enters a person's eye and stimulates their retina, that stimulation is the
proximal stimulus. The image of the shoe reconstructed by the brain of the person is the
percept. Another example would be a telephone ringing. The ringing of the telephone is the
distal stimulus. The sound stimulating a person's auditory receptors is the proximal stimulus,
and the brain's interpretation of this as the ringing of a telephone is the percept. The different
kinds of sensation such as warmth, sound, and taste are called "sensory modalities".[6][8]
Psychologist Jerome Bruner has developed a model of perception. According to him people
go through the following process to form opinions:.[
When a perceiver encounters an unfamiliar target we are opened different informational cues
and want to learn more about the target.
In the second step we try to collect more information about the target. Gradually, we
encounter some familiar cues which helps us categorize the target.
At this stage the cues become less open and selective. We try to search for more cues that
confirm the categorization of the target. At this stage we also actively ignore and even distort
cues that violate our initial perceptions. Our perception becomes more selective and we
finally paint a consistent picture of the target.
According to Alan Saks and Gary Johns, there are three components to Perception.
39

40. The Perceiver, the person who becomes aware about something and comes to a final
understanding. There are 3 factors that can influence his or her perceptions: experience,
motivational state and finally emotional state. In different motivational or emotional states,
the perceiver will react to or perceive something in different ways. Also in different situations
he or she might employ a "perceptual defence" where they tend to "see what they want to
see".
The Target. This is the person who is being perceived or judged. "Ambiguity or lack of
information about a target leads to a greater need for interpretation and addition."
The Situation also greatly influences perceptions because different situations may call for
additional information about the target.
Stimuli are not necessarily translated into a percept and rarely does a single stimulus translate
into a percept. An ambiguous stimulus may be translated into multiple percepts, experienced
randomly, one at a time, in what is called "multistable perception". And the same stimuli, or
absence of them, may result in different percepts depending on subject‘s culture and previous
experiences. Ambiguous figures demonstrate that a single stimulus can result in more than
one percept; for example the Rubin vase which can be interpreted either as a vase or as two
faces. The percept can bind sensations from multiple senses into a whole. A picture of a
talking person on a television screen, for example, is bound to the sound of speech from
speakers to form a percept of a talking person. "Percept" is also a term used
by Leibniz,[10] Bergson, Deleuze and Guattari[11] to define perception independent from
perceivers.
Perception and reality
In the case of visual perception, some people can actually see the percept shift in their mind's
eye. Others, who are not picture thinkers, may not necessarily perceive the 'shape-shifting' as
their world changes. The 'esemplastic' nature has been shown by experiment: an ambiguous
image has multiple interpretations on the perceptual level.
This confusing ambiguity of perception is exploited in human technologies such
as camouflage, and also in biological mimicry, for example by European Peacock butterflies,
whose wings bear eye markings that birds respond to as though they were the eyes of a
dangerous predator.
There is also evidence that the brain in some ways operates on a slight "delay", to allow nerve
impulses from distant parts of the body to be integrated into simultaneous signals.
Perception is one of the oldest fields in psychology. The oldest quantitative law in
psychology is the Weber-Fechner law, which quantifies the relationship between the intensity
of physical stimuli and their perceptual effects (for example, testing how much darker a
computer screen can get before the viewer actually notices). The study of perception gave
rise to the Gestalt school of psychology, with its emphasis on holistic approach.
40

41. Effect of motivation and expectation
Main article: Set (psychology)
A perceptual set, also called perceptual expectancy or just set is a predisposition to perceive
things in a certain way. It is an example of how perception can be shaped by "top-down"
processes such as drives and expectations. Perceptual sets occur in all the different
senses. They can be long term, such as a special sensitivity to hearing one's own name in a
crowded room, or short term, as in the ease with which hungry people notice the smell of
food. A simple demonstration of the effect involved very brief presentations of non-words
such as "sael". Subjects who were told to expect words about animals read it as "seal", but
others who were expecting boat-related words read it as "sail".
Sets can be created by motivation and so can result in people interpreting ambiguous figures
so that they see what they want to see. For instance, how someone perceives what unfolds
during a sports game can be biased if they strongly support one of the teams. In one
experiment, students were allocated to pleasant or unpleasant tasks by a computer. They were
told that either a number or a letter would flash on the screen to say whether they were going
to taste an orange juice drink or an unpleasant-tasting health drink. In fact, an ambiguous
figure was flashed on screen, which could either be read as the letter B or the number 13.
When the letters were associated with the pleasant task, subjects were more likely to perceive
a letter B, and when letters were associated with the unpleasant task they tended to perceive a
number 13.
Perceptual set has been demonstrated in many social contexts. People who are primed to
think of someone as "warm" are more likely to perceive a variety of positive characteristics in
them, than if the word "warm" is replaced by "cold". When someone has a reputation for
being funny, an audience are more likely to find them amusing. Individual's perceptual sets
reflect their own personality traits. For example, people with an aggressive personality are
quicker to correctly identify aggressive words or situations
One classic psychological experiment showed slower reaction times and less accurate
answers when a deck of playing cards reversed the color of the suit symbol for some cards
(e.g. red spades and black hearts)
Philosopher Andy Clark explains that perception, although it occurs quickly, is not simply a
bottom-up process (where minute details are put together to form larger wholes). Instead, our
brains use what he calls Predictive coding. It starts with very broad constraints and
expectations for the state of the world, and as expectations are met, it makes more detailed
predictions (errors lead to new predictions, or learning processes). Clark says this research
has various implications; not only can there be no completely "unbiased, unfiltered"
perception, but this means that there is a great deal of feedback between perception and
expectation (perceptual experiences often shape our beliefs, but those perceptions were based
on existing beliefs).
41

42. Theories
Perception as hypothesis-testing
Cognitive theories of perception assume there is a poverty of stimulus. This (with reference
to perception) is the claim that sensations are, by themselves, unable to provide a unique
description of the world. Sensations require 'enriching', which is the role of the mental model.
A different type of theory is the perceptual ecology approach of James J. Gibson. Gibson
rejected the assumption of a poverty of stimulus by rejecting the notion that perception is
based in sensations – instead, he investigated what information is actually presented to the
perceptual systems. His theory "assumes the existence of stable, unbounded, and permanent
stimulus-information in the ambient optic array. And it supposes that the visual system can
explore and detect this information. The theory is information-based, not sensation-
based." He and the psychologists who work within this paradigm detailed how the world
could be specified to a mobile, exploring organism via the lawful projection of information
about the world into energy arrays. Specification is a 1:1 mapping of some aspect of the
world into a perceptual array; given such a mapping, no enrichment is required and
perception is direct perception
Perception-in-action
An ecological understanding of perception derived from Gibson's early work is that of
"perception-in-action", the notion that perception is a requisite property of animate action;
that without perception action would be unguided, and without action perception would serve
no purpose. Animate actions require both perception and motion, and perception and
movement can be described as "two sides of the same coin, the coin is action". Gibson works
from the assumption that singular entities, which he calls "invariants", already exist in the
real world and that all that the perception process does is to home in upon them. A view
known as constructivism (held by such philosophers as Ernst von Glasersfeld) regards the
continual adjustment of perception and action to the external input as precisely what
constitutes the "entity", which is therefore far from being invariant.
Glasersfeld considers an "invariant" as a target to be homed in upon, and a pragmatic
necessity to allow an initial measure of understanding to be established prior to the updating
that a statement aims to achieve. The invariant does not and need not represent an actuality,
and Glasersfeld describes it as extremely unlikely that what is desired or feared by an
organism will never suffer change as time goes on. This social constructionist theory thus
allows for a needful evolutionary adjustment.
A mathematical theory of perception-in-action has been devised and investigated in many
forms of controlled movement, and has been described in many different species of organism
using the General Tau Theory. According to this theory, tau information, or time-to-goal
information is the fundamental 'percept' in perception.
42

43. RESEARCH METHODOLOGY
Research Methodology Adopted
Research Design : Descriptive research
Research Instrument : Structured Questionnaire
43

44. Sampling Plan
i) Sample Method : Non-Probability Sampling
(Convenience Sampling)
ii) Sample Size : 100
iii) Sample Unit : Employees who do not hold a
supervisory position
Sampling Design
Convenience Sampling, as the name implies, is based on the convenience of the
researcher who is to select a sample. Respondents in the sample are included in it merely
on account of their being available on the spot where the survey was in progress.
Source of Data
1. Data Source:
There are two types of data; primary and secondary data.
Primary data
In this project work primary data has been collected by:
● Questionnaires have been done on several respondents in the local area and perception
about the data card were collected.
Secondary data
The data collected from secondary source is through Magazine , newspaper, internet.
2. Data Analysis:
Statistical Tool
44

45. The statistical tool used in this project is chi square.
FINDINGS AND ANALYSIS
HYPOTHESIS
45

46. NULL HYPOTHESIS: There is no relation between employees perception and performance
appraisal.
ALTERNATE HYPOTHESIS: There is relation between employees perception and
performance appraisal.
My performance is adequately monitored during performance appraisal.
Fig7
46

47. ● From the above data we find most of the employees whose salary is below 10,000 and
above 30,000 they are strongly agree that their performance is adequately monitored
during performance appraisal
● Maximum employees whose salary is in between 10,000-20,000 and 20,000-30,000, they
are agree.
Performance appraisal does not contribute to job performance.
Fig 8
● From the above data we find most of the employees whose salary is below 10,000 and
above 30,000 they are disagree that performance appraisal does not contribute to job
performance.
● Maximum employees whose salary is in between 10,000-20,000 and 20,000-30,000, they
are strongly disagree.
47

48. Performance goals are clearly defined in the process of appraisal.
Fig 9
The above graph represents maximum number of employees whose salary is below 10,000 and
10,000 are Disagree that the performance goals are clearly defined in the process of performance.
Whereas, those employees whose salary is 20,000-30,000 they are agree and above 30,000 give no
response.
The performance appraisal is helpful in reducing grievance among the
employees.
48

49. Fig 10
The above graph represents most of the employees whose salary is below 10,000 and 10,000-20,000
they disagree that the performance appraisal is helpful in reducing grievance among the employees.
Whereas, maximum employees whose salary in between 20,000-30,000 and above 30,000 they are
strongly agree.
I do not need feedback to monitor my performance
Fig 11
● The above graph represents maximum number of employees whose salary is below 10,000
are disagree that they do not need feedback to monitor their performance.
● Most of the employees whose salary in between 10,000-20,000 and 20,000-30,000 they
agree that they do not need feedback to monitor their performance.
● And Maximum employees whose salary is above 30,000 they are strongly agree.
49

50. The performance appraisal is helpful for improving personnel skill.
Fig 12
● Above graph shows that most of the employees whose years of service up to 2 years and
6-10 years are strongly agree that appraisal enhances the chances for promotion.
● Maximum number of employees whose years of service is 2-6 years and above 10 years
are agree that the appraisal enhances the chances for promotion.
Promotion is purely based on performance appraisal.
50

51. Fig 13
● The above graph represents maximum number of employees whose years of
service up to 2 years and above 10 years are strongly agree that the promotion is purely
based on performance.
● Most of the employees whose years of service is 2-6 years and 6-10 years are agree that
promotion is purely based on performance.
Appraisal increases career growth.
Fig 14
● From the above graph we find that maximum number of employees whose years of service
up to 2 years and 2-6 years are agree that the Appraisal increases career growth
● Most of the employees whose years of service is 6-10 years and above 10 years are strongly
agree that the appraisal increases career growth
51

52. Appraisal enhances the chances for promotion.
Fig 15
● Above graph shows that most of the employees whose years of service up to 2 years and
6-10 years are strongly agree that appraisal enhances the chances for promotion.
● Maximum number of employees whose years of service is 2-6 years and above 10 years
are agree that the appraisal enhances the chances for promotion.
52

53. STATISTICAL TOOL
CHI-SQUARE TEST
ALTERNATIVE HYPOTHESIS—Performance appraisal improves job
performance.
O E O-E (O-E)² (O-E)²/E
Strongly agree 48 20 28 784 39.2
Agree 32 20 12 144 7.2
No response 9 20 11 121 6.05
Disagree 7 20 13 169 8.45
Strongly disagree 4 20 16 256 12.8
Table 1
Where, O is Observed value
and, E is expected value.
Σ(0-E)²/E = 73.7
χ² = Σ(O-E)²/ E = 73.7
n-1 = 5-1 = 4 Degree of freedom
n= number of variables
53

54. The significance level = 0.05
So, 9.49 is Tabulated
Calculated > Tabulated
Therefore, Null Hypothesis is rejected. i.e. Performance Appraisal does not improves job
performance, this statement is rejected.
So, from the result we can say that performance appraisal improves job performance.
ALTERNATIVE HYPOTHESIS- The assessment of performance motivates
to work harder.
54

55. O E O-E (O-E)² (O-E)²/E
Strongly agree 32 20 12 144 7.2
Agree 36 20 16 256 12.8
No response 14 20 6 36 1.8
Disagree 11 20 9 81 4.05
Strongly disagree 7 20 13 169 8.45
Table 2
Where, O is Observed value
and, E is expected value.
Σ(0-E)²/E = 34.3
χ² = Σ(O-E)²/ E = 34.3
n-1 = 5-1 = 4 Degree of freedom
n= number of variables
The significance level = 0.05
So, 9.49 is Tabulated
Calculated > Tabulated
Therefore, Null Hypothesis is rejected. i.e. the assessment of performance does not
motivates to work harder. This statement is rejected.
55

56. So, from the result we can say that the assessment of performance motivates to work harder.
ALTERNATIVE HYPOTHESIS- Performance goals are clearly defined in
the process of appraisal.
56

57. O E O-E (O-E)² (O-E)²/E
Strongly agree 26 20 6 36 1.8
Agree 39 20 19 361 18.05
No response 15 20 5 25 1.25
Disagree 9 20 11 121 6.05
Strongly disagree 11 20 9 81 4.05
Table 3
Where, O is Observed value
and, E is expected value.
Σ(0-E)²/E = 31.2
χ² = Σ(O-E)²/ E = 31.2
n-1 = 5-1 = 4 Degree of freedom
n= number of variables
The significance level = 0.05
So, 9.49 is Tabulated
Calculated > Tabulated
Therefore, Null Hypothesis is rejected. i.e. performance goals are not clearly defined in the
process of appraisal. This statement is rejected.
57

58. So, from the result we can say that Performance goals are clearly defined in the process of
appraisal.
ALTERNATIVE HYPOTHESIS- Performance appraisal provides me with
the opportunity to set personal goals.
58

59. O E O-E (O-E)² (O-E)²/E
Strongly agree 26 20 6 36 1.8
Agree 36 20 16 256 12.8
No response 16 20 4 16 0.8
Disagree 12 20 8 64 3.2
Strongly disagree 10 20 10 100 5
Table 4
Where, O is Observed value
and, E is expected value.
Σ(0-E)²/E = 23.6
χ² = Σ(O-E)²/ E = 23.6
n-1 = 5-1 = 4 Degree of freedom
n= number of variables
The significance level = 0.05
So, 9.49 is Tabulated
Calculated > Tabulated
Therefore, Null Hypothesis is rejected. i.e Performance appraisal does not provides me with
the opportunity to set personal goals. This statement is rejected.
So, from the result we can say that Performance appraisal provides me with the opportunity
to set personal goals.
59

60. 1. As it is cleared by the analysis part that the performance appraisal enhances the
performance of the employees and assessment of performance motivates to work
harder these two satisfy our first objective which is to find out that the perception of
employees towards performance appraisal and by this it is clear that employees are
very much depended upon the appraisal system and and they are likely to do the work
for their appraisal and by this their performance enhance.
2. And by other to analysis i.e. performance goals are clearly defined in the process of
appraisal and the last one i.e. performance appraisal provides with the opportunity to
set personal goals and by these it is cleared that the second objective which is the
study of the impact of performance appraisal on employees‘ performance and by this
it is clearly defined that the performance appraisal has a positive impact on the
employees‘ performance.
And by this it is cleared that our alternate hypothesis which is there is relation between
employees perception and performance appraisal has been justified.
CONCLUSION & RECOMMENDATION
Performance Appraisal assesses an individual employee‘s job performance and productivity
in relation to certain pre-established criteria and organizational objectives. Performance
60

61. appraisal plays a very important role in the organization because it improves job
performance. From the study it is conclude that performance appraisal provides the
opportunity to set personal goals. It is also conclude that the assessment of performance
motivates to work harder. The performance appraisal is helpful in reducing grievance among
the employees. From this study it is found that performance appraisal increases career
growth. And performance appraisal helps in the promotion of the employees. It is cleared by
the analysis part that the performance appraisal enhances the performance of the employees
and assessment of performance motivates to work harder these two satisfy our first objective
which is to find out that the perception of employees towards performance appraisal
This shows that there must be some necessary changes made and to look after for the proper
growth of the firm and as well as of the employees‘ performance. The recommendation
which must be followed for that are as follows:-
● The performance appraisal must be measured on the continuous time period.
● There must be proper monitoring of the employees performance.
● There must be performance appraisal to improv the personnel skills of the employees.
● Promotion must be done on the basis of performance appraisal.
● There must be assessment of performance to motivate the employees to work harder.
LIMITATIONS
There are various limitations in the completion of the project and they are as follows:
61

62. ● Few employees were having problems in filling the questionnaire due to time constraint.
● Few employees were taking the exercise as a mere formality.
● Even after much care was taken while formation of the questionnaire, few employees got
confused regarding the questions..
● The employees had to be assured that it is for academic purposes only and the response
given by them will be kept anonymous.
● The common query was why these questionnaires are filled.
● Few employees got irritated because they felt it was a waste of time.
● Comparatively small sample size (total employees-100 approx.)
BIBLIOGRAPHY
www.google.com
www.uflexltd.com
62

63. www.flexfilm.com
www.uflexengg.com
www.wikipedia.org
Thornton, G.C. & W.C. Byham (1982) Assessment centres and Managerial Performance, Academic
Press, New York .
T.V.Rao & U. Pareek (1978) Performace Appraisal and Review: Operating Manual, Learning System,
New Delhi.
H. Richl (1996). ‘A Skilful Approach to High Productivity’, H.R. Magazine, August, 97-102
J.A.D Conger Finegold & E.E.Lawler (1998).’Appraising Boardroom Performance’. Harvard Business
Review, January- February.
ANNEXURE
QUESTIONNAIRE
63

64. Name:
…………………………………………………………………………..
Sex:
[ ] Male [ ] Female
Age:
[ ]Upto 20 years [ ] 20-30 years [ ] 30-40 years [ ] above 40
years
Marital Status:
[ ] Married [ ] Unmarried
Years of service:
[ ]Upto 2 years [ ] 2-6 years [ ] 6-10 years [ ] above 10
years
Monthly Income:
64

65. [ ] below 10,000 [ ] 10,000-20,000 [ ] 20,000-30,000 [ ] above
30,000
STUDY FACTORS:
S.no. Particulars SA A NR DA SDA
7 Performance appraisal improves job performance
8 The assessment of performance motivates to work
harder
9 Performance goals are clearly defined in the
process of appraisal
10 My performance is adequately monitored during
performance appraisal
11 Performance appraisal does not contribute to job
performance
12 The performance appraisal is helpful in reducing
grievance among the employee
13 I do not need feedback to monitor my
performance
14 The performance appraisal is helpful
for improving personnel skill
15 Promotion is purely based on performance
appraisal
16 Is the Performance assessment match to your
expectations
17 Appraisals encourage career growth
18 Appraisals enhances the chances for promotion
65

66. 19 Performance appraisal provides me with the
opportunity to set personal goals
20 The Performance Appraisal System give a proper
assessment of your contribution to the
Organization
SA- Strongly agree, A- Agree, NS- No response, DA- Disagree, SDA- Strongly
Disagree
66