The document discusses performance appraisal methods used to evaluate employee performance. It describes comparative appraisal methods like ranking, paired comparisons, and forced distribution that compare employees' performance. Behavioral appraisal methods like graphic rating scales, checklists, critical incidents, essays, and behaviorally anchored rating scales evaluate employees based on important job behaviors. Output-based appraisals assess performance based on quantifiable outcomes. The document also introduces a proposed new hybrid appraisal method that combines aspects of comparative, behavioral, and output-based approaches.

1. 1. INTRODUCTION
1.1 PERFORMANCE APPRAISAL
Performance appraisal is the process of obtaining, analyzing and recording
information about the relative worth of an employee. The focus of the performance appraisal
is measuring and improving the actual performance of the employee and also the future
potential of the employee. Its aim is to measure what an employee does.
It is a powerful tool to calibrate, refine and reward the performance of the employee.
It helps to analyze his achievements and evaluate his contribution towards the achievements
of the overall organizational goals. By focusing the attention on performance, performance
appraisal goes to the heart of personnel management and reflects the management's interest
in the progress of the employees.
People differ in their abilities and their aptitudes. There is always some difference
between the quality and quantity of the same work on the same job being done by two
different people. Therefore, performance management and performance appraisal is
necessary to understand each employee's abilities, competencies and relative merit and
worth for the organization.
Performance appraisal rates the employees in terms of their performance.
Performance appraisal takes into account the past performance of the employees and focuses
on the improvement of the future performance of the employees.
1.1.1 OBJECTIVES OF PERFORMANCE APPRAISAL:
• To review the performance of the employees over a given period of time.
• To judge the gap between the actual and the desired performance.
• To help the management in exercising organizational control.
1

2. • Helps to strengthen t h e relationship and communication between supervisor-
subordinates and management-employees.
• To diagnose the strengths and weaknesses of the individuals so as to identify t h e
training and development needs of the future.
• To provide feedback to the employees regarding their past performance. Provide
information to assist in the other personal decisions in the organization.
• Provide clarity of the expectations and responsibilities of the functions to be
performed by the employees.
• To judge the effectiveness of the other human resource functions of the organization
such as recruitment, selection, training and development.
• To reduce the grievances of the employees.
If employee development is required for performance improvement then solving
these performance problems should be straight forward with a clear understanding of root
causes. Possible approaches include changing the work environment, better prioritization of
conflicting priorities, time off, additional training, shadow or buddy system, mentoring or
coaching, changing team environment or set objectives and soon.
1.2 INDUSTRY PROFILE
1.2.1 HISTORY
The first practical automobile with a Petrol engine was built by Karl Benzin, 1885 in
Mannheim, Germany. Benz was granted a patent for his automobile on 29 January 1886, and
began the first production of automobiles in 1888 after Bertha Benz his wife had proved with
the first long-distance trip in August 1888 from Mannheim to Pforzheim and back that the
horseless coach was absolutely suitable for daily use. Since 2008 a Bertha Benz Memorial
Route commemorates this event.
Soon after, Gottlieb Daimler and Wilhelm Mabuchi in Stuttgart in 1889 designed a
vehicle from scratch to be an automobile, rather than a horse-drawn carriage fitted with an
engine. They are also usually credited as inventors of the first motorcycle in 1886, but Enrico
Bernardio of the University of Padua in 1882, patented a 0.024 horsepower one-cylinder
2

3. petrol motor fitting into his son’s tricycle making it at least a candidate for the first
automobile, and first motorcycle. Bernardi enlarged the tricycle in 1892 to carry two adults.
1.2.2 AUTOMOTIVE INDUSTRY
The automotive industry designs, develops, manufacturers, markets, and sells the
world’s motor vehicles. In 2009, more than 88 million motor vehicles, including cars and
commercial vehicles were produced worldwide.
In 2009-2010, a total of 90 million new automobiles were sold worldwide: 24 million
in Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 14.4 million in
Latin America, 6.4 million the Middle East and 7.4 million in Africa. The markets in North
America and Japan were stagnant, while those in South America and Asia grew strongly. Of
the major markets, Russia, Brazil, India and China saw the most rapid growth.
About 250 million vehicles are in the use in the United States. Around the world,
there were about 806 million cars and light trucks on the road in 2009: they burn over 260
billion gallons of gasoline and diesel fuel yearly. The numbers are increasing rapidly,
especially in China and India. In the opinion of some, urban transport systems based around
the car have proved unsustainable, consuming excessive energy, affecting the health of
populations, and delivering a declining level of service despite increasing investments. Many
of these negative impacts fall disproportionately on those social groups who are also least
likely to own and drive cars. The sustainable transport movement focuses on solutions to
these problems.
In 2009, with rapidly rising oil prices, industries such as the automotive industry, are
experiencing combination of pricing pressures from raw material costs and changes in
consumer buying habits. The industry is also facing increasing external competition from the
public transport sector, as consumers re-evaluate the private vehicle usage. Roughly half of
the US’s fifty one light vehicle plants are projected to permanently close in the coming years
with the loss of another 200,000 jobs in the sector, on top of the 560,000 jobs lost this
decade. As a result, in 2010, China became the largest automobile markets in the world.
3

4. 1.3 INTRODUCTION OF THE COMPANY
BMW is an acronym for Bayerische Motoren Werke AG--or, in English, Bavarian
Motor Works. Whatever you call it, the German-based company is one of the world's most
respected automakers, renowned for crafting luxury cars and SUVs that offer superior levels
of driving enjoyment. Founded in Munich, the company began in the early 1910s as an
aircraft manufacturer. BMW's current logo, designed to represent white propeller blades
against a blue sky, reflects these origins; its blue-and-white color scheme also references
Bavaria's blue-and-white checkered flag. It wasn't until 1928 that production began on the
first BMW automobile, the Dixi. The car proved tremendously popular, and its success
helped the manufacturer weather the Depression. BMW's best-known pre-World War II
vehicle was the Type 328 roadster, a supple two-seater that racked up over 120 victories on
the motorsport circuit between 1936 and 1940.
Postwar BMW cars maintained this tradition, winning several racing, rallying and hill
climb victories. The early 1950s saw the launch of the BMW 501, a roomy, voluptuous sedan
that was M resplendent with all of the hopefulness of that era. It was soon followed by the
502 which was powered by the world's first light-alloy V8, foreshadowing BMW's ongoing
commitment to developing new technology. The best-selling BMW of that decade was the
Isetta, a petite two-seat "micro car" typically powered by a 12- or 13-horsepower engine. The
mid-'50s also saw the debut of the limited production and breathtakingly beautiful 507 sports
car which had an alloy body and used the 502's V8 for propulsion. In the 1960s, BMW sales
strengthened significantly, thanks in part to the immense popularity of the 1500, a sporty
family sedan. By the 1970s, BMW was establishing itself as a full-fledged car company. It
was a pioneer for many emerging technologies, including turbo charging and advanced
vehicle electronics. This was also the period when BMW of North America was established
and consumers, who coveted both sports and luxury cars, became loyal "Bimmer" owners.
The '70salso saw the birth of BMW's three-tier sport sedan range consisting of the 3 Series, 5
Series and7 Series cars and the creation of its performance division. More recently, the
company has been expanding its reach worldwide. It opened its first U.S. manufacturing
plant in the latter half of the 1990s and has expanded its brand empire to include Mini and
4

5. Rolls-Royce. BMW also continues to build motorcycles, something it has done since the
1920s.
The automaker's famous advertising slogan describes each of its vehicles as "the
ultimate driving machine," and it's not mere hyperbole. Over the past couple of decades,
BMWs have become the standard for performance and luxury in most of the "over $30,000"
segments. With family-friendly wagons, crisp sedans, distinctive coupes, nimble sports cars
and spacious SUVs offered, BMW's model roster is diverse. But its luxury vehicles all share
a common characteristic: the ability to make drivers feel gloriously connected to the road.
1.3.1 ORGANIZATION CHART
TN-436
General Manager
Human Resources
Subash Chander Ganapathy
TN-436
Team Assistant
Bavya
TN-436 TN-436
Manager Specialist
Human Resources EMS, Facilities and Project
R. Govardhanan M.Ramakrishnan
TN-436 TN-436
Specialist Safety Facilities & Projects
Sathish Naresh
TN-436
Recruitment , Trainng and PMS TN-436
Saranya Facilities
Balasubramaniyan
TN-436
Employee Relation TN-436
Shanmugarajan Projects
Damodharan
TN-436
Expat
Marrion
TN-436
Employee Relation (EWH &
Other Functions)
Balakrishnan
5

6. 1.3.2 VARIOUS DEPARTMENTS
ASSEMBLY
Starting from car body delivery from logistics to completion of entire car comes
under this department. It consists of process of assembling car parts. This includes various
sub-departments like Overhead, Door, Paint Shop, Final Flash, Finish Rework, Repair
On Wheels and Trimline.
PLANT MANAGEMENT
This is the finance department of the company which sources and allocates the funds
for continuous production. All necessary goods for employees are purchased through this
department. They provide the sales and expenditure details.
HUMAN RESOURCE AND FACILITY
This department serves as the bridge between the management and workforce.
Various tasks like filing of employee records, payroll distribution, tax filing, attendance,
assigning loss of pay etc. Facility department takes care of the plant maintenance. It includes
infrastructure facility like housekeeping, gardening, waste management and security etc.
INFORMATION TECHNOLOGY DEPARTMENT
This department takes care of network and communication facility of company. It
controls the inflow and outflow of data from company and outside world through computers
and internet security.
1.4 INTRODUCTION OF THE SUBJECT
Performance appraisal may be defined as an organized formal interaction between a
subordinate and supervisor, that usually takes the form of a periodic interview, in which the
work performance of the subordinate is examined and discussed, for identifying weaknesses
and strengths as well as opportunities for improvement and skills development (Archer
6

7. North, 2002). In other words, Performance appraisal is a formal system of measuring,
evaluating, and influencing an employee’s job-related attributes, behaviors and outcomes to
determine how productive an employee is, and to determine if an employee’s productivity
can be improved (Konobear, 2002).
Appraisal results are used in many organizations, either directly or indirectly, to help
identifying the better performing employees who should get the majority of available merit
pay increases, bonuses, and promotions. There are various appraisal methods are in usage
today. Broadly, we can classify them as comparative appraisals (ranking, paired
comparisons, and forced distribution), behavioral appraisals (graphic rating scales,
checklist, critical incidents, essays, and behaviorally anchored rating scales), and output
based appraisals. Also there are rapid appraisal methods for quick, low cost ways to gather
data for manager’s information needs.
All of the appraisal methods have been discussed and their advantages and
disadvantages are mentioned. In this paper a new appraisal method has been proposed using
the existing methods. This new method is developed by taking the advantages of the three
common methods including comparative, behavioral and output based. The advantages and
disadvantages of this new method are also discussed. A hierarchical structure discussed in
this paper uses all the appraisal methods accordingly at appropriate levels of the company.
1.4.1 METHODS FOR APPRAISING PERFORMANCE
Performance actually can be appraised by a wide variety of methods and techniques.
The most commonly used performance appraisal methods can be distinguished into three
major categories: comparative appraisals, behavioral appraisals, and output-based appraisals.
1.4.1.1 Comparative Appraisals
Managers directly compare the performance of their subordinates against one another
in comparative appraisals. For example, a data entry operator's performance would be
compared with that of other data-entry operators by the computing supervisor. Comparative
techniques include ranking, paired comparisons, and forced distribution.
7

8. Ranking: In this method, the supervisor lists all subordinates in order, from the highest to the
lowest in performance. Rankings such as this are appropriate only in small companies. As the
number of employees increases, it becomes gradually more difficult to discern differences in
their performance.
Paired Comparisons: The paired comparison method involves comparing each employee to
every other employee in the rating group, one at a time, to determine the better. A rank order
is obtained by counting the number of times each individual is selected as being the better of
a pair.
Forced Distribution: In forced distribution, the supervisor must assign only a certain
proportion of his/her subordinates to each of several categories on each evaluative factor. A
common forced distribution scale is divided into five categories. A fixed percentage of all
subordinates in the group fall within each of these categories. Typically, the distribution
follows a normal distribution.
1.4.1.2 Behavioral Appraisals
In contrast with comparative appraisals, behavioral appraisals allow supervisors to
evaluate each person's performance independent of other employees but relative to important
job-related behaviors, which when exhibited can lead to job success.
Graphic Rating Scale: The graphic rating scale allows the rater to mark an employee's job
performance on a five-point or seven-point scale. This method identifies certain subjective
character traits, such as 'pleasant personality', 'initiative' or 'creativity' to be used as basic job
performance criteria. Because of its simplicity, the graphic rating scale is the most frequently
used performance appraisal method.
Checklist: The checklist uses a list of statements or words that are checked by raters. Raters
check statements most representative of the characteristics and performance of an employee.
Typical checklist statements are: can be expected to finish working time, seldom agrees to
work overtime, is cooperative and helpful, accepts criticism, and strives for self-
improvement. The checklist can be modified so that varying weights are assigned to the
8

9. statements or words. The results can then be quantified. Usually, the results are not known by
the rater and are tabulated by someone else, such as a member of the HR unit.
Critical Incidents: In the critical incident method, the manager keeps a written record of the
highly favorable and unfavorable actions in an employee's performance. When something
happens [a 'critical incident' involving a particular employee] the manager writes it down.
Thus, a list of critical incidents is kept during the entire rating period for each employee. The
critical incident method can be used with other methods to document the reasons why an
employee was rated in a certain way.
Essays: The essay (free-form) appraisal method requires the manager to write a short essay
describing each employee's performance during the rating period. The rater usually is given a
few general headings under which to categorize comments. The intent is to allow the rater
more flexibility than other methods do. As a result, the method is often combined with other
methods.
Behaviorally Anchored Rating Scales (BARS): BARS utilize critical incidents to focus
appraisal on employee behaviors that can be changed. Thus, a BARS system describes
examples of 'good' or 'bad' behavior. These examples are 'anchored', or measured, against a
scale of performance levels. An example of BARS that rates a university professor's attitude
toward students is sited here. Construction of BARS begins with the identification of
important job dimensions. The dimensions are the most important performance factors in an
employee's description. Assume the major job dimensions associated with teaching are:
course organization, attitude toward students, fair treatment, and competence in subject area.
Short statements, similar to critical incidents, are developed that describe both desirable and
undesirable behaviors. Then they are 'retranslated' or assigned to one of the job dimensions.
This task is usually a group project and assignment to a dimension usually requires the
agreement of 60% to 70% of the group. The group, consisting of people familiar with the job,
then assigns each 'anchor' a number, which represents how 'good' or 'bad' the behavior is.
When numbered, these anchors are fitted to a scale. The drawbacks are: behaviorally
anchored rating scales require extensive time and effort to develop and maintain. Also,
9

10. separate BARS forms are necessary to accommodate different types of jobs in an
organization.
360 Degree Appraisal system: In human resources or industrial psychology, 360-degree
feedback, also known as multi-rater feedback, multi source feedback, or multi source
assessment, is feedback that comes from members of an employee's immediate work circle.
Most often, 360-degree feedback will include direct feedback from an employee's
subordinates, peers, and supervisor(s), as well as a self-evaluation. It can also include, in
some cases, feedback from external sources, such as customers and suppliers or other
interested stakeholders. It may be contrasted with "upward feedback," where managers are
given feedback only by their direct reports, or a "traditional performance appraisal," where
the employees are most often reviewed only by their managers.
1.4.1.3 Output-based Appraisals
While the methods described above focus on job behaviors or processes, output-based
appraisals focus on job products as the primary criteria. The most commonly used output-
based appraisal is Management-by-Objectives (MBO). MBO specifies the performance
goals that an individual hopes to attain within an appropriate length of time. The objectives
that each manager sets are derived from the overall goals and objectives of the organization.
Implementing an MBO appraisal system comprised four basic stages.
Job Review and Agreement: In the first phase the employee and the supervisor review the
job description and the key activities that comprise the employee's job. The idea is to agree
on the exact makeup of the employee's job.
Development of Performance Standards: Specific standards of performance must be
mutually developed. This phase specifies a satisfactory level of performance that is specific
and measurable.
Guided Objective Setting: Objectives are established by the employee in conjunction with,
and guided by, the supervisor. Objectives should be realistically attainable and may be
different from the set performance standard.
10

11. Continuing Performance Discussions: The employee and the supervisor use the objectives
as bases for continuing discussions about the employee's performance. Although a formal
review session may be scheduled, the employee and the manager do not necessarily wait
until the appointed time for performance discussion. Objectives are modified mutually, and
progress is discussed during the period.
11

12. 2. NEED, OBJECTIVE AND SCOPE OF THE STUDY
2.1 NEED FOR THE STUDY
Automobile has become important need of people in their fast moving life. These
automobile companies are expanding in greater phase in various countries especially in
highly populated countries like India, China etc. These Companies are also contributing
towards the development of economy for a long time and at the moment it is treated as an
important industry in modern world. Due to globalization and free market economy, this
industry is facing severe competition, also it makes establishment of foreign company in
other countries. Most of the automotive companies fail due to lack of proper strategic
planning and goals. One of the major reasons of their poor performance is adaptation of
traditional production system. They are very much slow in adopting new product line, less
concerned about attracting and satisfying customers and being reluctant to implement
information technology. That’s why it is very necessary for each and every industry to
evaluate its performance over the periods.
Thus the purposes of choosing the topic are,
• I feel that performance appraisal of employees will result in better productivity.
• For the better understanding of the concept of performance appraisal.
• To provide feedback on appraisal system of the company for further improvement of
the system.
2.2 OBJECTIVE OF THE STUDY
2.2.1 Primary Objective:
• To study the performance appraisal of employees at BMW Group Chennai.
12

13. 2.2.2 Secondary Objective:
• To study the purpose of performance appraisal conducted at BMW.
• To understand the opinion of employees towards performance appraisal at BMW.
• To identity the effect of performance appraisal on individual and organizational
development.
• To understand the existing relationship between management and employees.
• To identify ways to improve the existing performance appraisal system.
2.3 SCOPE OF THE STUDY
• The management can identify the employee's opinion of the existing performance
appraisal system.
• The study can be used to make the present appraisal system more effective and
satisfied among employees.
• It could be used to identify training and development needs for the individual and the
organization as a whole
2.4 LIMITATIONS OF THE STUDY
Production is, in fact, a huge operation and it is quite impossible to cope up all the
activities during internship period. And for that reason limitations prevail while conducting
the survey. Basic limitations faced while preparing the study were:
• The Company’s policy of not disclosing some data and information for obvious
reasons, which would have been very much useful for the report.
• Some of the questionnaires were incomplete.
• Few employees sometime felt disturbed, as they were busy in their job.
• Sometimes it was difficult to collect data from their files, because important files are
kept in volt for safety.
• It is difficult to make information based a rich report in short time of period.
• This report was prepared in short time.
13

14. 3. LITERATURE REVIEW
3.1 PERFORMANCE APPRAISAL
Performance appraisal is one of the most important requirements for all successful
business and human resource policy (Kressler, 2003). Rewarding and promoting effective
performance in organization, as well as identifying ineffective performers for resource
management (Pulakos, 2003). The ability to conduct performance appraisal relies on the
ability to assess an employee's performance in a fair and accurate manner. Evaluating
employee performance is a difficult task. Once the supervisor understands the nature of the
job and the source of information, the information needs to be collected in a systematic way,
provided as feedback, and integrated into the organization's performance management
processor use in making compensation, job placement and training decisions and assignment
(London, 2003).
Performance evaluations have been conducted since the times of Aristotle (Landy,
Zedeck, Cleveland, 1983). The earliest formal employee performance evaluation program is
thought to have originated in the United States military establishment shortly after the birth
of the republic (Lopez,1968). The measurement of an employee's performance allows for
rational administrative decisions at the individual employee level. It also provides for the
raw data for the evaluation of the effectiveness of such personnel-system components and
processes as recruiting policies, training programs, selection rules, promotional strategies,
and reward allocations (Landy, Zedeck, Cleveland, 1983).In addition, it provides the
foundation for behaviorally based employee counseling. In the counseling setting,
performance information provides the vehicle for increasing satisfaction, commitment, and
motivation of the employee. Performance measurement allows the organization to tell the
employee something about their rates of growth, their competencies, and their potentials.
There is little disagreement that if well done, performance measurements and feedback can
play a valuable role in effecting the organization (Landy, Zedeck, Cleveland, 1983).
14

15. 3.2 BASIC PURPOSE
Performance appraisals should focus on three objectives: performance, not
personalities; valid, concrete, relevant issues, rather that subjective emotions and feelings;
reaching agreement on what the employee is going to improve in his performance and what
you are going to do (MeKirehy,1998). Both the supervisor and employee should recognize
that a strong relationship exists between training and performance evaluation (Barr, 1993).
Each employee should be allowed to participate in periodic sessions to review performance
and clarify expectations. Both the supervisor and the employee should recognize these
sessions as constructive occasions for two-way should include opportunities for self-
assessment as well as supervisor feedback.
The supervisor should keep in contact with the employee to assure the training
experiences are producing desired impact (Barr, 1993). A portion of the process should be
devoted to an examination of potential opportunities to pursue advancement of acceptance of
more complex responsibilities. The employee development goals should be recognized as
legitimate, and plans should be made to reach the goals through developmental experiences
or education (Barr, 1993). Encouraging development is not only a supervisor's
professional responsibility, but it also motivates an employee to pursue additional
commitments. In addition, the pursuit of these objectives will also improve the prospect that
current employees will be qualified as candidates when positions become available. This
approach not only motivates current performance but also assists the recruitment of current
employees as qualified candidates for future positions (Barr, 1993).
3.3 BENEFITS OF PRODUCTIVE PERFORMANCE APPRAISALS
Employee learns of his or her own strengths in addition to weaknesses. New goal
and objectives are agreed upon. Employee is an active participant in the evaluation
process. The relationship between supervisor and employees is taken to an adult-to-adult
level. Work teams may be restructured for maximum efficiency. Employee renews his or
her interest in being a part of the organization now and in the future. Training needs are
identified. Time is devoted to discussing quality of work without regard to money issues.
15

16. Supervisor becomes more comfortable in reviewing the performance of employees.
Employees feel that they are taken seriously as individuals and that the supervisor is truly
concerned about their needs and goals. (Randi, Toler, Sachs, 1992).
3.4 PITFALLS TO AVOID
When conducting performance appraisals on any level, it is important to keep in
mind the common pitfalls to avoid.
These pitfalls may include but are not limited to:
1. Bias/prejudice-Race, religion, education, family background, age, and/or sex.
2. Trait assessment-Too much attention to characteristics that have nothing to do with the
job is difficult to measure.
3. Over-emphasis on favorable or unfavorable performance of one or two tasks which
could lead to an unbalanced evaluation of the overall contribution.
4. Relying on impressions rather than facts.
5. Holding the employee responsible for the impact of factors beyond his/her control.
6. Failure to provide each employee with an opportunity for advance preparation
(Maddux,1993).
3.5 LEGAL IMPLICATIONS
Any performance appraisal system used to make employment decisions about a
member of a protected class (i.e. Based on age, race, religion, gender or national origin)
must be a valid system (an accurate measure of performance associated with job
requirements. Other it can be challenged in the courts based on Title VII of the 1964, Civil
Rights Act, the Civil Rights Act of 1991 and the Age Discrimination in Employment Act of
1975 (London, 2003).
Effectiveness of performance Appraisal system it is argued is a function of applying
the right system in right context. –By Klein; the Art of Appraisal.
Performance appraisal system are "homework" that provides the information you
need in order to make appropriate administrative recommendations, hold meaningful
16

17. feedback discussions with staff members, and determined were performance improvement is
required. - By Marion E. Haynes; Managing Performance.
The effectiveness of an Appraisal System is determined by the quality of
communication between the manager and staff member, not by multiple raters, complex
scoring methods, or the form used.-By John D. Drake; Performance Appraisal.
One More Time Performance appraisal can actually be counter-productive for
employees who are in the greatest need of training and further development.-By Victor
Buzzottan; improving your Performance Appraisal.
One of the measure reason Performance management and Performance Appraisal fail
is that too much time is spent on Appraising performance using vague criteria and not
enough time and effort put into helping employee understands what his job is about, and the
goals and objectives he/she is expected to achieve to be successful. Learn to do goals setting
painlessly. – By Robert Dacal; Learn to plan Performance and set employee goals.
Maximizing and measuring our own performance and that of the people who work
for us is a basic tenant of the work environment. Always use of simple too land approach that
can be beneficial in achievement performance plan.-By Zack Mansdorf; Performance
Management; Identifying work goals.
Most managers and supervisors today are attempting to quantify their departmental
objective and pass them on their employees through performance standards. Despite the
simplicity of this management-by-objective approach, deadlines are missed, quality is
relatively poor and productive is low. The reasons for this may not be the fault of the
employees carrying out the work. The cause is most often associated with the immediate
supervisor's lack of attention to the realities surrounding objectives and performance
standards require a careful analysis of all the relevant issues. –By Gregory Isaac; Plan for
performance.
Organizations striving to develop an open and participative approach have begun to
give employees the chance to say what they think of their managers. Such appraisals can
only work in a culture where mangers are willing to listen and learn and effect any necessary
changes as a result. - By Madhukar Shukla; Upward Appraisal and Organizational
culture.
17

18. A tone stage performance appraisal relied mainly on personality characteristics.
Subordinates were being appraised by their superior on the extent to which they exhibited
characteristic like, tact, willingness, enthusiasm, and maturity. Mangers were being put into
position of psychologists and required to make subjective ratings without any point of
reference expect their own opinion. –By Bob Nelson; Performance Assessment.
Performance appraisal is a part of overall performance management system of an
organization. Through the appraisal process, gap between an individual's agreed performance
standard his actual performance is assessed and appropriate strategies are drawn for
subsequent performance cycle. This is a useful performance enhancement exercise. In many
Organizations, PMS is linked with other systems like salary &Benefits, Training &
Development and Succession Planning. - By H. K. Shukla; Striates Human Resource
Management.
18

19. 4. RESEARCH METHODOLOGY
Research in common parlance refers to search for knowledge. Redman and Mory
define research as a “Systematized effort to gain new knowledge. Research is an academic
activity and such the term should be used in technical sense. According to Clifford Woody,
Research comprises defining and redefining problem, formulating hypothesis or suggested
solutions; collecting, organizing and evaluating data; making deductions and research
conclusions; and at last carefully testing the conclusions to determine whether they fit the
formulating hypothesis.
Research is thus an original contribution to the existing stock of knowledge making
for its advertisement. It is pursuit of truth with the help of study, observation, comparison and
experiment. In short the search for knowledge through objective and systematic method of
finding solution to problem is research.
4.1 RESEARCH DESIGN
A Research design is the arrangement of conditions for collection and analysis of data
in a manner that aims to combine relevance to the Research purpose with economy in
procedure. In fact the Research design is the conceptual structure within which Research is
conducted: it constitutes the blueprint for the collection measurement and analysis of data.
It must be able to define clearly what they want to measure and must find adequate
methods for measuring it along with a clear cut definition of population wants to study. Since
the aim is to obtain complete and accurate information in these studies, the procedure to be
used must be carefully planned. The research design must make enough provision for
protection against bias and must maximize reliability with due concern for the economical
completion of the search study.
Descriptive research is adopted for this study. It includes surveys and fact finding
enquires of different kinds. The major purpose of descriptive research is description of the
state affairs as it exists at present. The main characteristic of this method is that the
19

20. researcher has no control over the variables. He can only report what has happened or what is
happened.
4.2 SAMPLING DESIGN
A sample design is a definite plan for obtaining a sample from the sampling frame, it
refers to the technique or procedure the researcher would adopt in selecting some sampling
units from which interferences about the population is drawn. Sampling type used is Simple
Random sampling technique.
4.2.1 POPULATION AND SAMPLE SIZE
A decision has to be taken concerning sampling unit before selecting sample. The
population for this study includes the employees from three branches of BMW group. The
total population of BMW group is 800. 100 employees were undertaken for the study.
4.3 DATA COLLECTIONS
For achieving the specific objectives of this study, data were gathered from both primary and
secondary sources.
4.3.1 Primary Sources
• Direct conversation with the respective officers of the Departments.
• Face to face conversation with the employees.
• Employee’s opinion collected through Questions.
• Observation of HR activities.
4.3.2 Secondary Sources:
• Various records of the Company.
• Different Types of system information.
• Website of BMW Group.
• Different newsletters.
• Annual Performance Appraisal Form of company.
• Personal files of employees.
20

21. 4.4 STATISTICALTOOLS
 Chi-square test
 Percentage analysis
4.4.1 CHI-SQUARE TEST
The Chi-square test is an important test amongst the several tests of significance
developed b y statisticians. Chi-square is a statistical measure used in the context of
sampling analysis for comparing a variance to a theoretical variance. As a non-parametric
test, it can be used to determine if categorical data shows dependency or the two
classifications are independent. The test is, in fact, a technique through the use of which it is
possible for all researchers to
i. Test the goodness of fit
ii. Test the significance of association between two attributes and
iii. Test the homogeneity or the significance of population variance.
As a test of independence, test enables us to explain whether or not two attributes are
associated. In such a situation, we proceed with the null hypothesis that the two attributes are
independent. If the calculated value is less than the tabulated value at certain degrees of
freedom, the null hypothesis is accepted and vice versa.
is calculated as follows:
= ∑ (O-E) 2
E
Where
= Chi-Square
Oi = Observed Frequency
Ei = Expected Frequency
is always positive.
21

22. The expected value for the contingency tabulated as follows.
E= (Row total*Column total)
Grand total
The test depends on the set of observed and expected values and on the degrees of
freedom. The distribution is the limiting approximation designation.
4.4.2 PERCENTAGE ANALYSIS
It refers to a special kind of ratio. Percentage is used in making comparison
between two or more series of data; percentages are used to determine relationship between
the series if data finding the relative differences becomes easier through percentage.
It is expressed as,
Percentage (%) = No. of respondents x 100
Total no. of respondents
22

23. 5. DATA ANALYSIS AND INTERPRETATION
5.1 GENDER WISE CLASSIFICATION OF RESPONDENTS
TABLE 5.1 GENDER WISE CLASSIFICATION OF RESPONDENTS
Gender No. of respondents Percentage (%)
Male 89 89
Female 11 11
Total 100 100
Source: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 89% of the respondents are male and 11% of the
respondents are female.
FIGURE 5.1 GENDER WISE CLASSIFICATION OF RESPONDENTS
23

24. 5.2 AGE WISE CLASSIFICATION OF RESPONDENTS
TABLE 5.2 AGE WISE CLASSIFICATION OF RESPONDENTS
Age No. Of Respondents Percentage (%)
20-25Age 25 25
30-35Age 33 33
40-45Age 30 30
Above-45Age 12 12
Total 100 100
Source: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 33% of the respondents are in the age of
30-35, 30% of the respondents are in the age of 40-45, 25% of the respondents are in the age
of 20-25 and 12% of the respondents are in the age above 45.
FIGURE 5.2 AGE WISE CLASSIFICATION OF RESPONDENTS
24

25. 5.3 EXPERIENCE WISE CLASSIFICATION OF RESPONDENTS
TABLE 5.3 EXPERIENCE WISE CLASSIFICATION OF RESPONDENTS
Experience No. Of Respondents Percentage (%)
Below 5Years 28 28
5-lO Years 54 54
10-15 Years 18 18
Above15Years - -
Total 100 100%
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 54% of the respondents are having 5-10years
experience persons, 28% of the respondents have below 5Years of experience persons, 18%
of the respondents are having 10-15years of experience and no respondents have experience
more than 15years.
FIGURE 5.3 EXPERIENCE WISE CLASSIFICATION OF RESPONDENTS
25

26. 5.4 EDUCATIONAL QUALIFICATIONS OF RESPONDENTS
TABLE 5.4 EDUCATIONAL QUALIFICATIONS OF RESPONDENTS
Educational Qualification No. Of Respondents Percentage (%)
UG degree 49 49
PG degree 19 19
Engineering 04 04
Other ITI 28 28
Total 100 100%
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 49% of the respondents are UG degree holders,
28% of the respondents are some others (ITI), 19% of respondents are PG degree holders
and 4% of the respondents are engineering graduates.
FIGURE 5.4 EDUCATIONAL QUALIFICATIONS OF RESPONDENTS
26

27. 5.5 FREQUENCY OF PERFORMANCE APPRAISAL
TABLE 5.5 FREQUENCY OF PERFORMANCE APPRAISAL
Performance Appraisal No. of respondents Percentage (%)
Once a Year 100 100
Twice a Year - -
No Specific Time - -
Total 100 100
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 100% of the respondents agree that performance
appraisal is conducting once a year.
5.6 REASON FOR CONDUTING PERFORMANCE APPRISAL
TABLE 5.6 REASON FOR CONDUTING PERFORMANCE APPRISAL
Performance Appraisal No. of respondents Percentage (%)
Conducting
To identity motivating methods - -
To decide monetary benefits - -
Identifying barriers of - -
performance
All of the above 100 100
Total 100 100
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 100% of the respondent's agree that the reason
for conducting performance appraisal includes all the factors such as to identity motivating
methods, to decide monetary benefits and identity barriers for performance.
27

28. 5.7 DURATION OF PERFORMANCE APPRAISAL CONDUCTED
TABLE 5.7 DURATION OF PERFORMANCE APPRAISAL CONDUCTED
When Performance No. of respondents Percentage (%)
Appraisal conducted
During working hours 87 87
During non-working hours 13 13
Total 100 100
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that for 87% of the respondents' performance
appraisal is conducted during working hours and for 13% respondents' performance appraisal
is conducted during non-working hours.
FIGURE 5.7 DURATION OF PERFORMANCE APPRAISAL CONDUCTED
28

29. 5.8 WHO CONDUCT PERFORMANCE APPRAISAL
TABLE 5.8 WHO CONDUCT PERFORMANCE APPRAISAL
Who Conducts No. Of Respondents Percentage (%)
Performance appraisal
Superior - -
Peers - -
Everyone - -
Outsider 100 100
Total 100 100
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that for 100% of the respondents’ performance
appraisal is conducted by outsiders.
5.9 REASONS FOR PERFORMANCE APPRAISAL DISCUSSED
TABLE 5.9 REASONS FOR PERFORMANCE APPRAISAL DISCUSSED
Informed reason for
Performance appraisal
No. Of Respondents Percentage (%)
conducting
Always 20 20
Sometimes 77 77
Never 03 03
Total 100 100
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 77% of respondents feel that the reason for
performance appraisal is discussed sometimes, 20% of the respondent's feel it is discussed
always and 3% of respondents say reason is never discussed.
29

30. FIGURE 5.9 REASONS FOR PERFORMANCE APPRAISAL DISCUSSED
5.10 EMPLOYEE PERFORMANCES DISCUSSED
TABLE 5.10 EMPLOYEE PERFORMANCES DISCUSSED
Meetings of No. Of Respondents Percentage (%)
Employee performance
Nil - -
Once 100 100
Twice - -
Thrice - -
Total 100 100%
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that for 100% of the respondents meeting on
performance is conducting once a year.
30

31. 5.11 PERFORMANCE APPRAISAL PROGRAMS RELATED WITH
ORGANIZATIONAL GOALS
TABLE 5.11 PERFORMANCE APPRAISAL PROGRAMS RELATED WITH
ORGANIZATIONAL GOALS
Goals No. Of Respondents Percentage (%)
To a high extent 12 12
To some extent 69 69
To a low extent 19 19
Total 100 100
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 69% of the respondents feel the performance
appraisal relates to some extent to organization goals, 19% feel to a low extent and12% feel
to a high extent it relates.
FIGURE 5.11 PERFORMANCE APPRAISAL PROGRAMS RELATED WITH
ORGANIZATIONAL GOALS
31

32. 5.12 1NVOLVEMENT IN DESIGNING APPRAISAL SYSTEM
TABLE 5.12 INVOLVEMENT IN DESIGNING APPRAISAL SYSTEM
Opinion No. of Respondents Percentage (%)
Always - -
Sometimes - -
Never 100 100
Total 100 100
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 100% of the respondents say they are never
involved in designing the appraisal system.
5.13 PERFORMANCE APPRAISAL RELEVANCE TO EMPLOYEE JOB
TABLE 5.13 PERFORMANCE APPRAISAL RELEVANCE TO EMPLOYEE JOB
S. No Relevance No. Of Respondents Percentage (%)
1 Highly relevant 87 87
2 Relevant 13 13
3 No idea - -
4 Irrelevant - -
5 Highly irrelevant - -
Total 100 100
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 87% of the respondents feel that performance
appraisal is highly relevant to employee job and 13% feel it is relevant.
32

33. FIGURE 5.13 PERFORMANCE APPRAISAL RELEVANCE TO EMPLOYEE
JOB
5.14 OPINION AND SUGGESTIONS SHARED TO MANAGERS
TABLE 5.14 OPINION AND SUGGESTIONS SHARED TO MANAGERS
Opinion and Suggestions No. of Respondents Percentage (%)
Mostly 100 100
Rarely - -
Never - -
Total 100 100
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 100% of the respondents mostly share their
opinion and suggestions to their managers.
33

34. 5.15 TRAINING OF FILL UP PERFORMANCE APPRAISAL FORM
TABLE 5.15 TRAINING OF FILL UP PERFORMANCE APPRAISAL FORM
Forms No. of respondents Percentage
Yes 100 100
No - -
Total 100 100%
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 100% of the respondents are given training to fill
the appraisal form.
5.16 APPRAISER'S AWARENESS ON EMPLOYEE JOB RESPONSIBLITIES
AND DUTIES
TABLE 5.16 APPRAISER'S AWARENESS ON EMPLOYEE JOB
RESPONSIBLITIES AND DUTIES
Aware No. of respondents Percentage (%)
Completely Aware - -
Aware to an extent - -
Not Aware 100 100
Total 100 100%
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 100% of the respondents feel that the appraiser
is not aware of their job responsibilities and duties.
34

35. 5.17 FEEDBACKS PROVIDED FOR PERFORMANCE IMPROVEMENT
TABLE 5.17 FEEDBACKS PROVIDED FOR PERFORMANCE
IMPROVEMENT
Aware No. of respondents Percentage (%)
Frequently 89 89
Occasionally 11 11
Never - -
Total 100 100%
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 89% of the respondents feel that feedback is
provided occasionally whereas 11% feel that feedback is provided frequently.
FIGURE 5.17 FEEDBACKS PROVIDED FOR PERFORMANCE
IMPROVEMENT
35

36. 5.18 INVOLVEMENT OF RATER
TABLE 5.18 INVOLVEMENT OF RATER
Involvement No. of respondents Percentage (%)
Highly involved 34 34
Less involved 40 40
Not involved 26 26
Total 100 100%
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 44% of the respondents feel the rater is less
involved, 34% of the respondents feel they are highly involved and 26% of the respondents
are not involved.
5.19 PROPER EXECUTION OF PERFORMANCE APPRAISAL
TABLE 5.19 PROPER EXECUTION OF PERFORMANCE APPRAISAL
Properly executed in your
organization No. Of Respondents Percentage (%)
Yes 78 78
No 22 22
Total 100 100
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 78% of the respondents feel performance
appraisal is properly executed while 22% feel it is not properly executed.
36

37. FIGURE 5.19 PROPER EXECUTION OF PERFORMANCE APPRAISAL
5.20 UPDATING OF PERFORMANCE APPRAISAL
TABLE 5.20 UPDATING OF PERFORMANCE APPRAISAL
Reviewed and updated No. Of Respondents Percentage (%)
Frequently 46 46
Occasionally 54 54
Never - -
Total 100 100
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 54% of the respondents feel the performance
appraisal is reviewed occasionally while 46% of respondents feel they are reviewed
frequently.
37

38. FIGURE 5.20 UPDATING OF PERFORMANCE APPRAISAL
5.21 STATISTICAL ANALYSIS
5.21.1 CHI-SQUARE TEST
TABLE 5.21.1 CROSS TABULATION BETWEEN THE CHANGES TAKEN FOR
PERFORMANCE APPRAISAL AND IMPROVEMENT OF
PERFORMANCE APPRAISAL.
Improvement
in Highly In Highly
Effective Moderate Total
Overall effective Effective ineffective
PA
Change in
motivating 7 5 9 12 0 33
strategy
Re-structuring
of
organization 12 2 6 3 2 25
or individual
objectives
38

39. Improvement
in
Management 11 8 0 6 0 25
employment
relationship
Making
changes in 4 1 0 4 8 17
dissatisfied
areas
No decision 0 0 0 0 0 0
taken
Total 34 16 15 25 10 100
STEP 1: SETTING AN HYPOTHESIS
H0: There is no significant relationship between the changes taken for performance appraisal
and improvement of performance appraisal.
H1: There is significant relationship between the changes taken for performance appraisal
and improvement of performance appraisal.
STEP 2: TO FIND THE EXPECTED FREQUENCY
Expected frequency = Corresponding row total * Corresponding column total
Total number of samples
STEP 3: CALCULATION OF CHI-SQUARE VALUE
Formula:
=∑ (O-E) 2
E
Where
= Chi-Square
Oi = Observed Frequency
Ei = Expected Frequency
39

40. TABLE 5.21.1.1 COMPUTATION TABLE FOR
O E (O-E) (O-E)2 (O-E)2/E
7 11.22 -4.22 17.81 1.59
5 5.28 -0.28 0.08 0.01
9 4.95 4.05 16.40 3.31
12 8.25 3.75 14.01 1.70
0 3.30 -3.30 10.8 3.30
12 8.50 3.50 12.25 1.44
2 4.00 -2.00 4.00 1.00
6 3.75 2.25 5.0 1.35
3 6.25 -3.25 10.5 1.69
2 2.50 -0.50 0.25 0.10
11 8.50 2.50 6.25 0.74
8 4.00 4.00 16.00 4.00
0 3.75 -3.75 14.06 3.75
6 6.25 -0.25 0.06 0.01
0 2.50 -2.50 6.25 2.50
4 5.78 -1.78 3.11 0.55
1 2.72 -1.72 2.9 1.09
0 2.55 -2.55 6.50 2.55
4 4.25 -0.25 0.0 0.01
8 1.70 6.30 39.69 23.35
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
TOTAL 54.04
40

41. STEP 4: LEVEL OF SIGNIFICANCE
Level of significance α = 0.05
Degrees of freedom = (R-1) (C-1)
= (4-1) (5-1) =12
Tabulated value at 5% level of significance and degree of freedom 12 is 21.026
STEP 5 : COMPARING WITH TABLE VALUE
The calculated value is greater than the tabulated value: 54.04 > 26.296
FINDING
Therefore, reject the Null Hypothesis Ho and accept the Alternate Hypothesis H1.
INFERENCE
There is significant relationship between the changes taken for performance
appraisal and improvement of performance appraisal.
TABLE 5.21.2 CROSS TABULATION BETWEEN THE PROPER EXECUTION OF
PERFORMANCE APPRAISAL AND RATING EMPLOYEE
PERFORMANCE.
Proper
execution
YES NO TOTAL
Rating
Performance
Based on abilities and skills 8 2 10
Based on management reference 19 6 25
Based on superiority 21 4 25
Based on contribution 30 10 40
TOTAL 78 22 100
41

42. STEP 1: SETTING AN HYPOTHESIS
H0: There is no significant relationship between the changes taken for performance appraisal
and improvement of performance appraisal.
H1: There is significant relationship between the changes taken for performance appraisal
and improvement of performance appraisal.
STEP 2: TO FIND THE EXPECTED FREQUENCY
Expected frequency = Corresponding row total * Corresponding column total
Total number of samples
STEP 3: CALCULATION OF CHI-SQUARE VALUE
Formula:
=∑ (O-E) 2
E
Where
= Chi-Square
Oi = Observed Frequency
Ei = Expected Frequency
TABLE 5.21.2.1 COMPUTATION TABLE FOR
O E (O-E) (O-E)2 (O-E)2/E
8 7.80 0.20 0.04 0.01
2 2.20 -0.20 0.04 0.02
19 19.50 -0.50 0.25 0.01
6 5.50 0.50 0.25 0.05
21 19.50 1.50 2.25 0.12
4 5.50 -1.50 2.25 0.41
30 31.20 -1.20 1.44 0.05
10 8.80 1.20 1.44 0.16
TOTAL 0.82
42

43. STEP 4: LEVEL OF SIGNIFICANCE
Level of significance α = 0.05
Degrees of freedom = (R-1) (C-1)
= (4-1) (2-1) = 3
Tabulated value at 5% level of significance and degree of freedom 3 is 7.28
STEP 5 : COMPARING WITH TABLE VALUE
The calculated value is greater than the tabulated value: 0.82<7.82
FINDING
Therefore, accept the Null Hypothesis H0 and reject the Alternate Hypothesis H1.
INFERENCE
There is no significant relationship between the changes taken for performance appraisal and
improvement of performance appraisal.
43

44. 6. SUMMARY AND CONCLUSION
6.1 FINDINGS
1. Majority (89%) of respondents are male.
2. Most of the respondents (33%) belong to the age group of 30 to 35.
3. 54% of the respondents have above 5 to10years of work experience.
4. Majority (49%) of the respondents are under graduates.
5. All of the respondents have under gone performance appraisal program once in a
year.
6. 100% of the employees interpret the reason for conducting performance appraisal
includes all the factors such as to identify motivating methods, to decide monetary
benefits and identify barriers for performance.
7. For 87% of the respondents performance appraisal was conducted during working
hours.
8. For 100% of the respondents the performance appraisal is conducted by outsider.
9. Most (77%) of the respondents feel that the reason for performance appraisal is
discussed sometimes.
10. Once in a year the meeting IS scheduled for all employees to discuss their
performance.
44

45. 11. 69% of the respondents feel that performance appraisal is related to organizational
goals to some extent.
12. All of the respondents infer that they are never involved in designing the performance
appraisal system.
13. 87% of the respondents feel that the performance appraisal system is developed
highly relevant to the employee’s job.
14. All respondents mostly share their opinion and suggestions freely during the
performance appraisal.
15. All respondents have got the training to fill up the performance appraisal forms.
16. All of the respondents feel that the appraiser is not aware of the jobs and duties of the
each and every employee.
17. 89% respondents feel the superior will provide informal feedbacks for
performance improvement occasionally.
18. Most (44%) of the respondents feel that the raters are less involved while appraising
employees.
19. Most (78%) of the respondents says the Performance Appraisal is properly executed
in the organization.
20. Majority (54%) of the respondents feel that performance appraisal system is reviewed
and updated occasionally.
45

46. 6.2 SUGGESTIONS
1. Performance appraisal could be conducted by a person inside the organization and
one who is familiar with the employees.
2. Objective of conducting the performance appraisal could be discussed and doubts
can be clarified.
3. Performance appraisal could be updated regularly to match individual and
organizational goals.
4. Suggestion could be obtained from employees regarding framing the performance
appraisal system.
5. Since the performance appraisal is conducted by the outsider, employees'
suggestion during performance appraisal may not reach the top managers. For
such situations suggestion box can be implemented and frequently reviewed.
6. The appraiser must be familiarized with the employee's job responsibilities and
duties before conducting performance appraisal.
7. Feedback on performance could be discussed through formal or informal
meetings.
8. This may enhance the involvement and performance of employees.
9. Appropriate and experienced appraiser can be appointed for effective
performance appraisal results.
10. Performance appraisal can developed in such away to identify the hidden talent
and skills of employees.
11. Employees having low performance could be called individually, encouraged and
monitored closely to make improvements.
12. Appraisal feedback is very important in any performance appraisal program.
Could be carefully communicated by making high performers increase their target
and low performers to build up their confidence.
46

47. 6.3 CONCLUSION
Performance appraisal may be understood as the assessment of an individual's
performance in a systematic way. The performance being measured against such factors as
job knowledge, quality and quantity of output, initiative, leadership abilities, supervision,
dependability, co-operation, judgment, versatility, health and the like. It also helps in
developing strength and rectifies weakness of the employees.
BMW Group have been conducting performance appraisal for the past four years.
From the study it has been identified that the performance appraisal is able to identify
employees' potential and find the motivating factors of employees. The major drawback is in
terms of the appraiser and his knowledge regarding employee’s job responsibilities and
duties.
BMW Group has been running successfully for past 5years and has created a good
name among its customers and society. People having poor background are given training
and provided with jobs. Performance appraisal can be conducted more effectively by using
the right tools and properly reviewing and updating the performance appraisal program.
Suggestion form employees and experienced personnel can further enhance and make the
performance appraisal an ideal evaluation system.
47

48. BIBLOGRAPHY
BOOKS
Human Resource Management. By S. Seetharaman & B.Venkateswara Prasad, Scitech
Publication, 2007.
Kothari, C.R., Research Methodology- Methods & Techniques, New Delhi, New Age
international(P)Ltd.,Publishers,SecondEdition,2004.
Performance Management, Concepts, Practices and Strategies for Organisation success
by S.K.Bhatia, Deep & Deep Publications Pvt. Ltd, 2008.
Statistical Methods for Management, By P.N.Arora & S.Arora New Delhi, Sultan Chand
& Sons Publishers, 2005.
WEBSITE
www.BMWGroup.com
www.citehr.com
www.performanceappraisal.com
48

49. APPENDIX
Name :
Gender : () Male Female ()
Age group : () 20-30
() 31-40
() 41-50
() 51-60
Experience : () Less than 3years
() 4-8Years
() 9-15Years
() More than15Years
Qualification :
1. How many times performance appraisal is conducted in your organization?
a) Once a year b) Twice a year c) No specific time
2. What is the reason for conducting performance appraisal in your organization?
a) To identify motivating methods b) To decide monetary benefits
c) Identifying barriers of performance d) All of the above
3. When is the performance appraisal conducted?
a) During working hours b) during non-working hours
4. Who conducts performance appraisal?
a) Superior b) Peers c) Everyone d) Outsider
49

50. 5. Are you informed the reason for conducting performance appraisal programs?
a) Always b) Sometimes c) Never
6. How many meetings are scheduled in a year to discuss employee performance?
a) Nil b) Once c) Twice d) Thrice
7. Does the performance appraisal programs relate to organizational goals?
a) To a high extent b) To some extent c) To a low extent
8. Are you involved along with the manager in designing the appraisal system at the
organization?
a) Always b) Sometimes c) Never
9. Is the performance appraisal developed in relevance to employee job?
a) Highly relevant b) relevant c) no idea d) Irrelevant e) highly irrelevant
10. Do you share your opinion and suggestions freely to the managers during the appraisal
program?
a) Mostly b) rarely c) never
11. Are you given training to fill up performance appraisal forms?
a) Yes b) No
12. Is the appraiser aware of your job responsibilities and duties?
a) Completely aware b) Aware to an extent c) Not aware
13.0ther than performance appraisal does your superior provide you within formal
feedbacks for performance improvement?
a) Frequently b) Occasionally c) never
50

51. 14. Are the raters involved while appraising employees?
a) Highly involved b) Less involved c) not involved
15. Do you feel that performance appraisal is important in an organization?
a) Highly important b) less important c) not important d) No idea
16. Is performance appraisal properly executed in your organization?
a) Yes b) No
17. Does top management support and encourage performance appraisal?
a) Highly supportive b) Less supportive c) Not supportive
18. Is the performance appraisal reviewed and updated now and then?
a) Frequently b) Occasionally c) Never
19. Does performance appraisal identify employee potential for advancement?
a) Highly effectively b) Effectively c) Neutral d) Ineffectively e) Highly ineffectively
20. State your satisfaction through the performance appraisal program at the
organization?
a) Unsatisfactory b) Needs Improvement c) Meets Expectation d) Outstanding
21. Do you feel that performance appraisal encourages you to put in more effort in reaching
your goals?
a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree
22. Do you obtain appraisal feedback?
a) Frequently b) Occasionally c) Rarely d) Never
51

52. 23. Are both five & negative points discussed to the employees?
a) Yes b) No
24. How do you feel when negative points are discussed?
a) Discouraged b) Determined to perform better
c) ready to learn d) Do not want to contribute
25. Rate your appraisal program
a) Reliable b) Effective c) Accurate d) Motivating e) Unbiased
26. Do you feel comfortable in discussing your problems with your superior?
a) Highly Comfortable b) Comfortable c)Neutral
d) Uncomfortable e) Highly uncomfortable
27. On what criteria is employee performance rated?
a) Based on abilities and skills b) Based on management reference
c) Based on superiority d) Based on contribution
28. What changes have been taken in the organization as a result of performance appraisal?
a) Change in motivating strategy b) Re-structuring of organization or individual
objectives c) Improvement in management-employee relationship d) Making changes in
dissatisfied areas e) No decision taken
29. In general, how effective has your organization performance appraisal system in
improving overall performance
a) Highly ineffective b) Ineffective c) Moderate d) Effective e) Highly effective
52