Project Report on Performance Appraisal (College Copy)-Final

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A PROJECT REPORT
ON
“PERFORMANCE APPRAISAL SYSTEM”
For The Partial Fulfillment of University Requirement for the Award of
BBM Degree of Mohan Lal Sukhadia University, Udaipur
Academic Session : 2013-2014
SUBMITTED TO: SUBMITTED BY:
MISS JYOTI JAIN PANKAJ WADHWANI
BHUPAL NOBLES’ POST GRADUATE COLLEGE, UDAIPUR
(Affiliated to MOHAN LAL SUKHADIYA UNIVERSITY, Udaipur)

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ACKNOWLEDGEMENT
“I could tell where the lamplight was by the trail he left behind him.”
-HARRY LAUDER
The profound effect of these words dawned on the during my summer training
at HRH. I feel immense pleasure in expressing my deep sense of gratitude to the
whole team of HR dept. at HRH for their professional guidance and encouragement.
My sincere thanks to Mr. Ajay Nagar (Manager HR) for his timely help, valuable
suggestions and for giving me an opportunity to work in this esteemed organization.
I am grateful to Mr. R.K. Paliwal (Deputy Manager HR) for his kind cooperation
and support throughout, the training period.
I owe immense gratitude to Mr. Dennis Thomas (Exe. HR) without their
forethoughts this project would not have been possible.
I also thankful to Miss Dimple Singh Gaur and Miss Jyoti Jain (Faculty, BBM
Dept., B.N. P.G. College) for their guidance and motivational support.

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PREFACE
Gone are the days when a person of new abilities could make in the world.
Today, every next opportunity is a challenge, every next person a competitor.
The horizons of today have expanded to such heights and widths, that for
establishing once identity, one requires a great deal of knowledge, smartness, tactics
and courage.
Today is the world of specialization, and I have opted for specialization in the
field of Human Resource. It is because HR, from being a supplementary tool for
business in the past has become an integral and important part of business world.
The GLORY AND SUCCESS of any business strongly requires HR as its initial identity.
Hence in the present scenario, a student is required to avail practical training
in his/ her field of specialization therefore for this purpose, I have selected, the topic
“Performance Appraisal System” through the case study of the unit “Historic Resort
Hotels Pvt. Ltd”.
Books don’t suffice the level of knowledge a student is required to posses. He/
she should have a previene absent the real happening of corporate sector.
The following project report is such an attempt to magnify my knowledge and to
sharpen the edges of my skills.

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DECLARATION
I PANKAJ WADHWANI S/o Mr. MANOHAR LAL WADHWANI Student of BBM 6th
Semester hereby declares that for the purpose of Training Project Report I have
conducted study on PERFORMANCE APPRAISAL SYSTEM of HRH GROUPS OF
HOTELS for the partial fulfillment of BBM degree. It is my original work.
Place:
PANKAJ WADHWANI
Date:

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CONTENTS
 Company Profile
 Vision and Mission
 Units of HRH Group
o Shiv Niwas Palace,Udaipur
o Fateh Prakash Palace,Udaipur
o Gajner Palace,Bikaner
o The Aodhi Hotel,Kumbalgarh
o Shikarbadi Hotel,Udaipur
o Gorbandh Palace Hotel,Jaisalmer
o Fateh Bagh Hotel,Ranakpur
o Karni Bhawan Palace,Bikaner
o Garden Hotel,Udaipur
o JagmandirIsland Palace
 Performance Appraisal System
 Introduction
 Process flow chart
 Objectives
 Main Features
 Potential Benefits
 Performance Appraisal Process

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 Purpose
 Performance Standards
 Performance Measurement
 Data Collection Methods
 Sources of Error in Performance Appraisal
 Employee Reaction
 Research Study
 Data Analysis
 Findings and Conclusion
 Bibliography
 Annexure

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TITLE
Project report on the “Performance Appraisal System” of “HRH group of
Hotels” in Udaipur.
OBJECTIVE
“The major objective of the study at HRH Group of Hotels was to get an
insight of the Performance Appraisal process and other aspect of Human
Resource Management (HRM).”
1. To find out existing disciplinary action process.
2. To know about the “HRH Group of Hotels”.
3. To find out existing Performance Appraisal process.
4. To assess the attitude and views of Human Resource (HR) manager
towards the Performance Appraisal process.
5. To analyze the view of Human Resource (HR) manager regarding the
objective and other aspect of Human Resource (HR).

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SIGNIFICANCE
HRH group of Hotels is the only chain of heritage palace hotels & resorts in
Rajasthan India. Now a days new Industries are coming up as a result
increasing.
Competition all over it attracts employees through high salary and incentive. It
also helped to gain an insight into the practical and other aspects of HR.
RESEARCH METHODOLOGY
Research type – Exploratory
Type of data used – Primary
Instrument–Schedule
Sampling unit – HR Department
Sample size – Normal

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SCOPE OF STUDY
The study was conducted to profile the company “HRH group of Hotels”. The
data were collected from 18 November, 2013 to 3rd
January, 2014 in Udaipur
city.
LIMITATION OF STUDY
 Since the results havebeen drawn on the basis of information provided by
respondents, responsemight creep in.
 Researcher is not an expert in the field of research, error in analysis and
interpretation might haveoccurred.

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COMPANY PROFILE
HRH group of is the only chain of heritage palace hotels & resorts in Rajasthan &
India. It is headquarter in Udaipur.
Udaipur, the city of dreams is perhaps the most romantic city in Rajasthan. A city
without rival in the country, it is not known for brutal forts but for exquisitely
decorated palaces, gardens & lakes. Palaces on lakeshores & on islands surrounded
by emerald & turquoise water. Encircled by the Aravelli Mountains, the lakes & the
altitude give Udaipur an extremely agreeable climate. The sunset & sunrise are from a
dream world.
This wonderful city was born out of the necessity of the ruling clan for the peace,
calm & security after the various Mughal invasions on their previous capital Chittor.
Then Maharana, Udai Singh ji, after the third siege of his capital Chittor in 1568-69,
looking for an agreeable & a safe palace to build his capital, came across the lake
Pichola. With the blessings of a holy sage of the region, built his palace on the
banks of this lake. To this day, in a shrine in the heart of the city palace, a flame
burns in gratitude to the ascetic.
The HRH group of Hotels invites the tourist to visit the home of the Rajput warrior
& enjoy the luxury of the converted palaces, forts & residences, which form some of
the properties in this exclusive chain.
Presently with properties of Udaipur, Kumbhalgarh, Jodhpur, Gajner, Bikaner,
Jaisalmer, Ramgarh & Ranakpur for HRH sky is the limit.

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Originally inherited palace, were converted into hotels due to the Sheer vision of
CMD. The HRH is now a leading chain of hotels in Rajasthan & aspires to expand
further.
The basic set up is unit wise decentralization with a central reservations department,
situated at the corporate office, city palace Udaipur. The units run independently with
the front office dep’t, F&B productions, F&B service, housekeeping , Accounts,
personnel & stores. The central stores are located at Udaipur. The head office of sales
& marketing is at Jaipur & the branch offices are at Udaipur, Ahmadabad Delhi,
Mumbai, and Ajmer & Bikaner. The HRH group is preserving royal palaces & resorts
across Rajasthan & has developed an authentic heritage circuit in the Indian state.

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Features of HRH
 Well-disciplined employees.
 Healthy competitions among all the branches of HRH.
 Sports and cultural evenings for employees.
 Excellence hospitality.
 People are highly co-operative and communicative.
 People work with team spirit.
 Rewards and punishments are considered part of game.
 Every new day is learning experience for people over there.
 Nepotism and favoritism does not exist.
 Positive approach.
 Hierarchy is not a hurdle in the personal relationships.
 People work on the principle of “equality and justice” e.g. food is common for each
level employee (whether junior or senior).
 Friendly atmosphere for new entrants.
 Workers suggestions are welcomed.
 HRH meets are organized on a continual basis.
 Training program is conducted.
 Workers problems are given a hearing and they are tried to be resolved.
 Consumer satisfaction is the motto of the organization.
 Supportive to the employees.
 Event management is given importance.
 Feedback.
 Orientation and induction.
 Job rotation.
 Get together.
 Town halls (monthly).

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Corporate Philosophy Of HRH Group
Preserving the royal heritage, culture and traditions of India and presenting it
meaningfully to the guest in the 21st century.
Become tree leaders in heritage hospitality, offering world-class facilities and unique
holiday opportunities for guest from all over the world.
“Atithi devo bhavo”. Treating the guests as if they God they inculcating a truly
Indian sense of personalized service towards guests within the organization.
Building an ethical employee-friendly organization that can strive towards making this
vision a reality.
Initiating environment-Protection programs and development plants to positively impact
the quality of life in the present and for future generations.
Marketing Concept of HRH
The marketing concept of HRH ltd. is to optimize capacity utilization by delivering
desired customer satisfaction more effectively and efficiently. The company intends to
have a presence in all the places of significant interest in Rajasthan within the near future
and then to expand beyond.
HRH analyzed the market and worked out a very distinct marketing strategy to
achieve organization goal. HRH have carefully segmented the market and their emphasis
is :-
 To target and develop up market in bound tourist which would be fitting
clientele for the types of product HRH to offer.
 Concentrating on free individual travelers and direct booking. Contracted rates to
approved travel agents for group travel.
 Develop corporate conferences.

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 Develop banquets.
 Develop special events.
 Develop festival related tourism.
 Develop leisure related tourism.
 Develop historical and cultural tourism.
HRH firmly believes that the only way to retain or maintain ancient forts,
palaces, havelies, etc. The philosophy of HRH ltd has been to create a conducive
environment to encourage ethic and cultural tourism where a tourist would get a
complete experience of the glorious past and rich heritage of the country. To
accomplish this our company’s objective have been to develop existing heritage
properties and to acquire unique properties with heritage values and to integrate our
business thereby widening the scope and the base of various activities and facilities
which would give a holistic experience to the tourist.

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About Hotels of HRH
For the hotels of HRH we can say, “Experience the original in the adobe of kings”.
HRH have nine hotels in Rajasthan. They are as follows:
UDAIPUR:
 Shiv Niwas Palace.
 Fateh Prakash Palace.
 Shikarbadi Hotel.
 Garden Hotel.
 The Aodhi, Kumbalgarh.
 Fateh Bag, Ranakpur.
BIKANER:
 Gajner Palace.
 Karni Bhawan Palace.
JAISALMER:
 Gorbandh Palace.

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Besides hotels HRH have many other properties also. Some of them are as listed below: -
 Ramgarh Resort and polo complex, Jaipur
Regal experience: -
 Manak Chowk.
 Darbar Hall.
 Janana Mahal
 The Vintage and classic car collection.
 The Crystal Gallery.
 Solar boats, Horse safari.

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HRH Group Of Hotels
The HRH Group of Hotels, Udaipur is the only chain of grand heritage hotels, palace
hotels, luxury hotels and historical resorts in Rajasthan, India. It is headquartered in Udaipur
(city of lakes), an historic city founded in 1559 on the banks of Lake Pichola. The HRH
Group of hotels is committed to preserve royal palaces and historic resorts across Royal
Rajasthan and has developed an authentic heritage circuit in this Indian state.
The HRH Group of hotels, Udaipur (Rajasthan) today offers authentic Indian grand heritage
palace hotels and historical venues for memorable “Destination Regal Wedding', grand
palace theme wedding in India, honeymoon packages, special holiday offers and other
events conferences, theme shows, banquets.
HRH Hotels Resorts and Palaces are the finest grand heritage and luxury hotels in
Rajasthan, India. HRH Hotels are the premier hospitality providers in Rajasthan India,
gracing important rajasthan towns and cities. HRH Hotels Resorts and Palaces comprises 9
hotels, resorts and authentic palace hotels in 5 locations across Rajasthan India with hotels
and resorts in Udaipur, Gajner, Bikaner, Kumbalgarh, Ranakpuur, Jaisalmer in the Royal
Rajasthan, India.

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Grand Heritage Palace Hotels
Grand holiday Palace hotels and retreats in enchanting settings or elegant business and
leisure hotels in major royal Rajasthan cities. HRH Hotels & Resorts, Rajasthan are the
epitome of luxury and hospitality. Exquisite interiors, impeccable service, fine cuisine and
contemporary technology come together to create an experience that is both grand and
intimate. Grand Heritage Hotel are Palace Hotels which offer luxurious accommodation and
an experience of a lifetime as all the suites and rooms have been restored to their pristine
glory.
Shiv Niwas Palace, Udaipur
A crescent adorning the southern end of the Palace complex, the Shiv Niwas Palace Hotel
Udaipur was originally Maharana Fateh Singhji's residence. The rooms around this awe-
inspiring courtyard were used as a place for entertaining personal guests. Shiv Niwas Palace
Hotel Udaipur was the vision of the His Late Highness Maharana Bhagwat Singhji Mewar,
which led to its conversion into a luxury hotel. Shiv Niwas Palace Hotel Udaipur is now
categorised as a Grand Heritage Palace as it has been restored to its original pristine glory.
Fateh Prakash Palace,Udaipur
The imposing lakeside Fateh Prakash Palace Hotel Udaipur recapitulates royal traditions
and lifestyles in its antique furniture, original paintings and opulent interiors. Its serene
premises and picturesque views of Lake Pichola, Jagmandir Island Palace, Lake Palace and
the Sajjangarh Fort, promise a soothing break from the rigors of city life. The magnificent
Durbar Hall, the exclusive Gallery Restaurant and the dazzling Crystal Gallery complete the
royal repertoire of unparalleled experiences at Fateh Prakash Palace Hotel Udaipur.

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Gajner Palace,Gajner
Gajner Palace, an incomparable jewel in the Thar Desert is built on the embankment of a
lake. Built by H.H. Maharaja Sir Ganga Singhji of Bikaner, this Grand Heritage property is
spread over 6000 acres. The former Maharajas and visiting British dignitaries during the
days of the Raj used Gajner Palace as a hunting resort.
Royal Retreat Rajasthan
The hotels and services of the HRH Group of Hotels, the premier chain of Palace Hotels and
Resorts in Rajasthan are offered under two distinct brands –Grand Heritage Hotels & Royal
Retreat culminating in a Regal Experience Grand Heritage Hotels are Palace Hotels which
offer luxurious accommodation and an experience of a lifetime as all the suites and rooms
have been restored to their pristine glory. Royal Retreats are Hunting lodges and Desert
Retreats that offer a complete getaway with modern comforts blended into the natural and
traditional ambience.
The AodhiHotel, Kumbhalgarh
Kumbhalgarh, an imposing fort set amid massive ramparts and surrounded by hundreds of
temples, is the creation of one of Mewar's legendary heroes, Rana Kumbha. The Aodhi is
the best location from where to explore the fort. The structure of this Royal Retreat has been
designed to match the landscape of the terrain. The Aodhi has a picturesque hilly and lush
setting, not far from the citadel. The resort abounds in natural beauty and promises a
delightful sojourn from day work tribulations.

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Shikarbadi Hotel, Udaipur
Originally a hunting lodge frequented by the royalty of Mewar, this Royal Retreat, is set
amidst the serene, wooded Aravalis. Though only 15 minutes from the City Palace, this
getaway is so peaceful that leaving the clamor of city life behind becomes easiest thing to
do. For wildlife and adventure buffs, there is a licensed Deer Park and also a provision for
horseback excursions into the sanctuary and the Aravali hills where one can spot deer,
antelope, wild boar, monkey and the nilgai.
GorbandhPalace Hotel, Jaisalmer
The very name of this hotel is inspired by the influence of the desert. Gorbandh is a harness,
which the desert women decorate for their husband's camel with any material they can find:
cowry shells, beads, sequins, cultured threads and even buttons. The architecture of this
Royal Retreat has been inspired by traditional Indian homes. There is a central courtyard
with a swimming pool which is surrounded by luxuriously appointed rooms.
Fateh Bagh Hotel, Ranakpur
Fateh bagh is the latest addition to the HRH Group of Hotels. This Royal Retreat is located
in Ranakpur, the famous Jain temple town. Fateh Bagh is recreating a forgotten chapter of
Rajathan's history. It is probably India's first attempt at transplanting a palace, faithfully
preserving the richness of the Raj architecture for 21st century visitors. It was in 1802 AD
that Rawla Koshilav flourished as a palace on the foothills of Aravallis near Jodhpur.
KarniBhawan PalaceHotel, Bikaner
Karni Bhawan Palace, an Art Deco Building built by Maharaja Dr. Karni Singh Ji of Bikaner
as his private residence is now a Royal Retreat surrounded by sprawling lawns located
within the desert city of Bikaner. Situated in the heart of the residential area, the hotel is near
to the major tourist attractions of the city like the Junagarh fort, Lalgarh Palace, the camel
breeding farm, the temples and the bazaars.

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Garden Hotel, Udaipur
Away from the City Palace Complex is the serene Garden Hotel:a circular building that has
been a distinguished landmark for the city of Udaipur for it houses the renowned Vintage &
Classic Car Collection. Garden Hotel, a Royal Retreat of the HRH Group of Hotels, is
located across the edge of Gulab Bagh; a tree lined landscaped garden spread across acres
of greenery.

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Regal Events
Regal Weddings, banquets, receptions, fashion shows, music concerts, classical
performances, exhibitions, product launches, film shoots and conferences are being
regularly organized at the unique venues of the HRH Group of Hotels
Regal Weddings are organized at Grand Heritage Palaces of the HRH Group as part of the
ongoing Regal Events. The historic venues in Udaipur and Gajner along with specialized
services and facilities provide an authentic backdrop for a truly Regal Wedding.
We offer corporate in India and oversees the matchless opportunity of hosting conferences
in a unique heritage environment. Grand Heritage Palaces and Royal Retreats of the HRH
Group have developed modern facilities and amenities for large and small conferences.

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Our Vision
The genesis of the HRH Group of Hotels is a tribute to the vision of Bhagwat Singh Mewar,
the 75th Maharana of Udaipur.
In post-Independent India of the 1950s, Maharana Bhagwat Singh was the first Indian royal
to have realized the potential of tourism to preserve the rich heritage of Rajasthan and
Udaipur. He took a pioneering decision to convert the Jag Niwas into the super deluxe Lake
Palace Hotel.
The grand opening of the Lake Palace Hotel in 1963 marked a new era in heritage tourism in
India. It was hailed all over the world as probably the finest luxury resort, distinguished by
uniquely Indian hospitality and service standards.
The 1980's witnessed a period of further growth and consolidation. The HRH Group of
Hotels assumed its present corporate form under the chairmanship of Shri Arvind Singh
Mewar, the 76th Maharana of Udaipur, and a professional hotelier. The HRH Group of
Hotels is today one of the finest chains of heritage hotels across Rajasthan, with each
unique heritage property being meticulously preserved, restored and developed.

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Our Mission
Preserving the royal heritage, culture and traditions of India and presenting it meaningfully to
guests in the 21st century
Becoming the leaders in heritage hospitality, offering world-class facilities and unique holiday
opportunities for guests from all over the world
Atithi devo bhava: Treating the guests as if they were God themselves - inculcating a truly
Indian sense of personalized service towards guests within the organization
Building an ethical and employee-friendly organization that can strive towards making this
vision a reality. Initiating environment-protection programmes and developmental plans to
positively impact the quality of life in the present and for future generations.
The House of Mewar has lived up to four perennial values:
1. Self respect
2. Self reliance
3. Respect for mankind
4. Service to community.
In order to sustain these values in ever changing times, the House of Mewar invested its
skills, time, and finances in the living heritage of art, architecture and culture. Now, it invites
you to become a joint custodian. It invites you to subscribe to the highest human values your
heart can subscribe to. This belief system drives all activities of the House of Mewar,
whether for profit (eg: The HRH Group of Hotels) or not- for-profit (eg several charitable,
cultural and educational trusts, the more salient being Maharana of Mewar Charitable
Foundation.)

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PERFORMANCE
APPRAISAL
SYSTEM

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Introduction
Performance appraisal is the process of obtaining, analyzing and recording information about the
relative worthof anemployee.The focus of the performance appraisal is measuring and improving
the actual performance of the employee andalsothe future potential of the employee. Its aim is to
measure what an employee does
According to Flippo, A prominent personality in the field of Human resources, “performance
appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the
matterspertainingto his present job and his potential for a better job." Performance appraisal is a
systematicwayof reviewingandassessingthe performance of anemployee duringagiven period of
time and planning for his future.

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Employee performance Management includes:
• Planning work and setting expectations,
• Continually monitoring performance,
• Developing the capacity to perform,
• Periodically rating performance in a summary fashion, and
• Rewarding good performance
Performance management is the systematic process by which an organization involves its
employees,asindividualsandmembersof agroup, inimprovingorganizational effectiveness in the
accomplishment of organization mission and goals.’

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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 employee.
Performance appraisal is a method of evaluating the behavior of employees in the work place
normallyincluding both the quantitative and qualitative aspects of job performance. Performance
refers to the degree of accomplishment of the tasks that make up an individual’s job. It indicates
how ell an individual is fulfilling the job demands.

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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
• Self assessment by employee
• Understanding strength and weakness.
• Identifying training and development needs.
• Identifying potential.
• Better understanding between appraised and appraiser.
• Recognizing achievements.
• Goal setting GOAL.
• Improved organizational performance.
• 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.
• Helpsto strengthenthe relationship and communication between superior – subordinates
and management – employees.
• To diagnose the strengths and weaknesses of the individuals so as to identify the 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 clarityof the expectationsandresponsibilities 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.

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Main features
A performance appraisal isasystematicandperiodicprocessthat assessesanindividual 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 organizational
citizenship behavior, accomplishments, potential for future improvement, strengths and
weaknesses, etc.
To collectPA data, there are three mainmethods: objective production, personnel, and judgmental
evaluation.Judgmental evaluations are the most commonly used with a large variety of evaluation
methods. Historically, PA has been conducted annually (long-cycle appraisals); however, many
companies are moving towards shorter cycles (every six months, every quarter), and some have
been moving into short-cycle (weekly, bi-weekly) PA. The interview could function as
“providing feedback to employees, counseling and developing employees, and conveying and
discussingcompensation,jobstatus,ordisciplinarydecisions”. PA is often included in performance
management systems. PA helps the subordinate answer two key questions: first, "What are your
expectations of me?" second, "How am I doing to meet your expectations?"
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,
improvingPA foreveryone shouldbe amongthe highest priorities of contemporary” organizations.
Some applications of PA are compensation, performance improvement, promotions, termination,
test validation, and more. While there are many potential benefits of PA, there are also some
potential drawbacks. For example, PA can help facilitate management-employee communication;
however,PA mayresultinlegal issuesif notexecutedappropriately, as many employees tend to be
unsatisfiedwiththe PA process.PAscreatedinanddeterminedasuseful inthe UnitedStatesare not
necessarily able to be transferable cross-culturally.

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Potential benefits
There are a number of potential benefits of organizational performance management conducting
formal performance appraisals(PAs).There hasbeenageneral consensus inthe belief that PAs lead
to positive implications of organizations. Furthermore, PAs can benefit an organization’s
effectiveness. One way is PAs can often lead to giving individual workers feedback about their job
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 PAs 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: behaviors, thoughts, and/or
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. Properly constructed
and utilizedPAshave the ability to lower distracting factors and encourage trust within the
organization.
 Goal settinganddesiredperformance reinforcement:organizationsfinditefficient to match
individualworker’sgoals and performance with organizational goals. PAs provide room for
discussioninthe collaborationof these individualandorganizationalgoals. Collaborationcan
also be advantageous by resulting in employee acceptance and satisfaction of appraisal
results.
 Performance improvement: well constructed PAs 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
componentsinhelpinganorganizationachievestrategicinitiatives”. It has been argued that

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for PAs to truly be effective, post-appraisal opportunities for training and development in
problem areas, as determined by the appraisal, must be offered. PAs can especially be
instrumental for identifying training needs of new employees. Finally, PAs can help in the
establishment and supervision of employees’ career goals.
PROCESS OF PERFORMANCE APPRAISAL

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STEPS IN PERFORMANCE APPRAISAL SYSTEM

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ESTABLISHING PERFORMANCE STANDARDS
The firststepin the processof performance appraisal isthe settingupof the standardswhichwill be
usedto as the base to compare the actual performance of the employees.This step requires setting
the criteria to judge the performance of the employees as successful or unsuccessful and the
degreesof theircontributiontothe organizational goalsandobjectives.The standardsset should be
clear, easily understandable and in measurable terms. In case the performance of the employee
cannot be measured, great care should be taken to describe the standards.
COMMUNICATING THE STANDARDS
Once set, it is the responsibility of the management to communicate the standards to all the
employees of the organization.
The employeesshould be informed and the standards should be clearly explained to the. This will
helpthemtounderstandtheirrolesandtoknow what exactlyisexpectedfromthem.The standards
shouldalsobe communicatedtothe appraisersor the evaluators and if required, the standards can
also be modified at this stage itself according to the relevant feedback from the employees or the
evaluators.
MEASURING THE ACTUAL PERFORMANCE
The most difficultpartof the performance appraisal processismeasuringthe actual performance of
the employees that is the work done by the employees during the specified period of time. It is a
continuous process which involves monitoring the performance throughout the year. This stage
requires the careful selection of the appropriate techniques of measurement, taking care that
personal bias does not affect the outcome of the process and providing assistance rather than
interfering in an employees work.

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COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE
The actual performance iscomparedwiththe desiredorthe standardperformance.The comparison
tells the deviations in the performance of the employees from the standards set. The result can
show the actual performance being more than the desired performance
or, the actual performance beinglessthanthe desiredperformance depictinganegative deviationin
the organizational performance.It includes recalling, evaluating and analysis of data related to the
employees’ performance.
DISCUSSING RESULTS
The resultof the appraisal iscommunicatedanddiscussedwiththe employees on one-to-one basis.
The focus of this discussion is on communication and listening. The results, the problems and the
possible solutions are discussed with the aim of problem solving and reaching consensus. The
feedbackshouldbe givenwithapositive attitude asthiscanhave an effectonthe employees’future
performance.The purpose of the meeting should be to solve the problems faced and motivate the
employees to perform better.
DECISION MAKING
The last step of the process is to take decisions which can be taken either to improve the
performance of the employees,take the requiredcorrective actions,orthe relatedHR decisions like
rewards, promotions, demotions, transfers etc.

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PURPOSE OF PERFORMANCE APPRAISAL
Performance Appraisalisbeingpracticedin90% of the organizations worldwide. Self-appraisal and
potential appraisal also form a part of the performance appraisal processes.
 Typically, Performance Appraisal is aimed at:
 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.
 To diagnose the training and development needs of the future.
There are four key elements in the appraisal system:
1. Set objectives - Decide what the Team Leader wants from the employees and agree these
objectives with them.
2. Manage performance - Give employees the tools, resources and training they need to
perform well.
3. Carry out the appraisal - monitor and assess the employees' performance, discuss those
assessments with them and agree on future objectives.
4. Provide rewards/remedies - Considerpayawardsand/or promotion based on the appraisal
and decide how to tackle poor performance.

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Performance Standards
How does the Team Leader decide what's acceptable and what's unacceptable performance? The
answerto thisquestionisthe firststepinestablishingwrittenstandards. Performance expectations
are the basis for appraising employee performance. Written performance standards let the Team
Leader to compare the employee's performance with mutually understood expectations and
minimize ambiguity in providing feedback.
Having performance standards is not a new concept; standards exist whether or not they
are discussed or put in writing. When the Team Leader observes an employee's performance, he
usually makes a judgment about whether that performance is acceptable.
Standards identify a baseline for measuring performance. From performance standards, the Team
Leadercan provide specificfeedbackdescribingthe gapbetweenexpected and actual performance.
Guiding Principles
Effective performance standards:Serveasanobjective basisforcommunicatingaboutperformance.
Increase job satisfaction because employees know when tasks are performed well.Inform new
employees of your expectations about job performance.
Key Responsibility Areas (KRA)
The Team Leadersinassociationwiththe ProjectManagerwrite performance standardsforeachkey
area of responsibility on the employee's job description. The employee actively participates in its
development.Standardsare usuallyestablishedwhenanassignmentismade,andtheyare reviewed
if the employee's job description is updated. The discussions of standards include the cri teria for
achieving satisfactory performance and the proof of performance (methods the Team Leader will
use to gather information about work performance).
Characteristics of Performance Standards
Standardsdescribe the conditionsthatmustexistbefore the performance can be rated satisfactory.
A performance standardshould:Be realistic,inotherwords,attainable byanyqualified, competent,
and fullytrainedpersonwhohasthe authorityandresourcestoachieve the desired result Describe
the conditionsthatexistwhenperformance meetsexpectations Be expressed in terms of quantity,
quality, time, cost, effect, manner of performance, or method of doing

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Be measurable, with specified method(s) of gathering performance data and measuring
performance against standards
Expressing Standards
The terms for expressing performance standards are outlined below:
Quantity: Specifies how much work must be completed within a certain period of time.
Quality: Describes how well the work must be accomplished. Specifies accuracy, precision,
appearance, or effectiveness.
Timeliness: Answers the questions, by when? , How soon? , Or within what period?
Effective Use of Resources: Used when performance can be assessed in terms of utilization of
resources: money saved, waste reduced.
Effectsof Effort: Addressesthe ultimate effecttobe obtained;expandsstatements of effectiveness
by using phrases such as: so that, in order to, or as shown by.
Manner of Performance: Describes conditions in which an individual's personal behavior has an
effectonperformance,e.g.,assistsotheremployeesinthe workunitin accomplishing assignments.
Method of Performing Assignments: Describes requirements; used when only the officially
prescribed policy, procedure, or rule for accomplishing the work is acceptable.
Performance Measurements
Since one of the characteristics of a performance standard is that it can be measured, the Team
Leader identifies how and where evidence about the employee's performance will be gathered.
Specifying the performance measurements when the responsibility is assigned will help the
employeekeeptrackof hisprogress,as well as helping the Team Leader in the future performance
discussions.

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There are manyeffectivewaystomonitorandverifyperformance,the most common of Which are?
Direct observation Specific work results (tangible evidence that can be reviewed without the
Employee beingpresent) Reports&records,suchas attendance,safety,inventory,financial records,
etc. Commendations or constructive or critical comments received about the employee's work.
Observation and Feedback (One on One)
Once performance objectives and standards are established, the Team Leader observes the
employees'performance andprovidesfeedback.The Team Leader has a responsibility to recognize
and reinforce strongperformance byanemployee,andidentifyandencourage improvement where
it is needed. The Team Leader provides informal feedback almost every day.
By observingandprovidingdetailedfeedback,the TeamLeaderplaysacritical role inthe employee's
continued success and motivation to meet performance expectations.
One On One Sessions
One on One isa methodof strengtheningcommunicationbetweenthe TeamLeaderandthe
employee.Ithelpstoshape performance andincrease the likelihoodthatthe employee'sresultswill
meetexpectations.One onOne sessionprovidethe TeamLeaderandthe employeethe opportunity
to discussherprogresstowardmeetingmutuallyestablishedstandardsandgoals.A One on One
sessionfocusesonone ortwoaspectsof performance,ratherthanthe total review thattakesplace
ina performance evaluation.
Guiding Principles
Effective One onOne can:
Strengthencommunicationbetweenthe TeamLeaderandthe employee
Helpthe employeeattainperformance objectives
Increase employee motivationandcommitment
Maintainand increase the employee'sself-esteem
Provide support

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Key Elements of One on One
To make One on One sessionseffective,the TeamLeaderkeepsthe followingkey elementsof One
on One inmindwhile conductingsuchasession:
Observe the employee'sworkandsolicitfeedbackfromothers.Whenperformance issuccessful,
take the time to understandwhy.Advisethe employee aheadof time onissuestobe discussed.
Questions to Consider during One on One
To provide effectivefeedbackthe TeamLeader must understand the elements of performance and
analyze marginal performance. These questions are kept in mind:-
How isthe employee expected to perform? Does the employee understand these expectations? If
not, why not?
Does the employee know what successful results look like? How does the Team Leader know?
Does the employee know the performance is marginal? How does the Team Leader know?
Are there obstacles beyond the employee's control? Can the Team Leader Remove? them?
Has the employee everperformedthistasksatisfactorily?Isthe employee willing and able to learn?
Does satisfactory performance result in excessive work being assigned?
Doesunsatisfactoryperformance resultinpositive consequences such as an undesirable task being
reassigned?
During the One on One Session
When the Team Leader conducts a One on One session to provide positive feedback to the
employee,he keepsthe followingpointsinmind:Describe the positive performance result or work
habit using specific details. Ask the employee's opinion of the same product or behavior.
Ask the employee to identify elements that contributed to success (adequate time or resources,
supportfrommanagementorother employees, the employee's talent and interest in the project).
Discuss ways in which the Team Leader and the employee can support continued Positive results.
Reinforce forthe employee the valueof the workandhow itfitsinwiththe goalsof the work unit or
department.Showyourappreciationof the positiveresults and your confidence that the employee
will continue toperform satisfactory. If appropriate, document your discussion for the employee's

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file. When the Team Leader conducts a One on One session to improve performance, he uses the
following format: Describe the issue or problem, referring to specific behaviors. Involve the
employeeinthe problem-solving process. Discuss causes of the problem. Identify and write down
possible solutions. Decide on specific actions to be taken by each of the Team Leader. Agree on a
follow-up date. Document key elements of the session.
Methods of collecting data
There are three main methods used to collect performance appraisal (PA) data: objective
production, personnel,andjudgmental evaluation.Judgmental evaluations are the most commonly
used with a large variety of evaluation methods.
Objective production
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
criteriathat isunrelatedtothe conceptual criteria. Inotherwords,the variabilityinperformance 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.
Happy-productive worker hypothesis
The happy-productiveworkerhypothesis 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
studiesproducedanuncorrectedcorrelationof 0.18. This correlation is much weaker than what the
happy-productive worker hypothesis would predict.

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Personnel
The personnel methodisthe recordingof withdrawal behaviors (i.e. absenteeism, accidents). Most
organizationsconsiderunexcusedabsencesto 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.
Especiallyforblue-collarjobs,accidentscanoftenbe auseful indicatorof poorjobperformance, 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 PAs is by means of raters. Because the raters are
human,some errorwill alwaysbe presentinthe data.The most commontypesof error are leniency
errors,central tendency errors,anderrorsresultingfromthe haloeffect.Haloeffectischaracterized
by the tendency to rate a person who is exceptionally strong in one area higher than deserved in
otherareas.It is the opposite of the Hornseffect,where apersonisrated as lower than deserved in
other areas due to an extreme deficiency in a single discipline. These errors arise predominantly
fromsocial cognition andthe theoryinthat how we judge and evaluate other individuals in various
contexts is associated with how we “acquire, process, and categorize information”.
An essentialpiece of thismethod is rater training. Rater training is the “process of educating raters
to make more accurate assessmentsof performance,typicallyachievedbyreducingthe frequencyof
halo,leniency,andcentral-tendencyerrors”. Ratertrainingalsohelpsthe raters“developa common
frame of reference for evaluation” of individual performance. Many researchers and survey
respondentssupportthe ambitionof effectual rater training. However, it is noted that such training
is expensive, time consuming, and only truly functional for behavioral assessments.
Anotherpiece tokeepinmindisthe effectsof 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 rates positively”). Typically, raters are motivated to give

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higher ratings because of the lack of organizational sanction concerning accurate/inaccurate
appraisals,the rater'sdesire toguarantee promotions,salaryincreases,etc.,the rater'sinclinationto
avoid negative reactions from subordinates, and the observation that higher ratings of the rates
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
commonlyusedsysteminPA. Onseveral differentfactors,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
tendencyandleniencyerrorsbutstill 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 rates. The
raters evaluate eachsubordinate onone ormore dimensionsandthenplace (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%
lowestperformingsubordinates,asaccordingtothe forceddistribution,anddismisses them
leaving the 90% higher performing subordinates.
 Behavioral Checklists and Scales: behaviors are more definite than traits. The critical
incidentsmethod(orcritical incident technique) concerns “specific behaviors indicative of
good or bad job performance”. Supervisors record behaviors of what they judge to be job
performance relevant,andtheykeeparunningtallyof goodandbad behaviors.A discussion
on performance maythenfollow.The BehaviorallyAnchored Rating Scales (BARS) combine
the critical incidentsmethodwithratingscale methodsbyratingperformance on a scale but
with the scale points being anchored by behavioral incidents. Note that BARS are job
specific. In the Behavioral Observation Scale (BOS) approach to performance appraisal,

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employeesare alsoevaluatedinthe termsof critical incidents.Inthatrespect,it is similar to
BARS. However, the BOS appraisal rate subordinates on the frequency of the critical
incidents as they are observed to occur over a given period. The ratings are assigned on a
five-pointscale.The behavioralincidentsforthe ratingscale are developed in the same way
as for BARS through identification by supervisors or other subject matter experts.
Similarly, BOStechniquesmeetequal employment opportunity because they are related to
actual behavior required for successful job performance.
Sources of Error in Performance Appraisal:
1. Rating Biases: It is a subjective measure of rating performance which is not verifiable by
othersand hasthe opportunityforbias.There raterbiasesinclude: a) the halo effect b) the error of
central tendency c) the leniency and strictness biases d) personal prejudice and e) the recency
effect.
2. Halo Effect: It isthe tendency of the raters to depend excessively on the rating of one trait
or behaviourial consideration in rating all other traits or behavioural considerations. One way of
minimizingthe haloeffectisappraisingall employees by one trait before going to rate them on the
basis of another trait.
3. The Error of Central Tendency:Some raters follow playsafe policy in rating by rating all the
employeesaroundthe middlepointof the rating scale and they avoid rating the people at both the
extremesscale.Theyfollowplaysafe policybecause of answerability to the management or lack of
knowledge about the job and person he is rating or has least interest in the job.
4. The Leniency and Strictness: the leniency bias crops when some raters have a tendency to
be liberal in their rating by assigning higher rates consistently. Such ratings do not serve any
purpose. Equally damaging is assigning consistently low rates.
5. Personal Prejudice:If the rater dislikesanyemployee oranygroup, he may rate them at the
lower end, which may distort the rating purpose and affect the career of these employees.

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5. The Recency Effect: The raters generally remember the recent actions of the employee at
the time of rating them on the basis of these recent actions favorable or unfavorable-rather than
on the whole activities.
Employee reactions
Numerousresearchershave reportedthatmanyemployeesare notsatisfiedwiththeirperformance
appraisal (PA) systems. Studies have shown that subjectivity as well as appraiser biases 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.Thesechangesare particularlyconcernedwithareassuchaseliminationof
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,employeeparticipationinthe 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.
Researcherssuggestthatthe studyof employees’reactions to PA is important because of two main
reasons:employee reactionssymbolizea criterion of interest to practitioners of PAs and employee
reactions have been associated through theory to determinants of appraisal acceptance and
success. Researcherstranslate thesereasonsintothe contextof the scientist-practitioner gap or the
“lack of alignment between research and practice.”

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Aim of the Research
To ascertain the effectiveness of Performance Appraisal methodology used by the Organization.
Objectives of the study
The following are the objectives of the study –
To develop my understanding of the subject.
Performance AppraisalSystem implemented in various Organizations varies according to the need
and suitability. Through my research, I have tried to study the kind of Appraisal used in the
Organization and the various pros and cons of this type of system.
To conduct a study on social behavior.
Social behavior is a very unpredictable aspect of human life but social research is an attempt to
acquire knowledge and to use the same for social development.
To enhance the welfare of employees.
The Appraisal systemisconceivedbythe Managementbutmostlydoes not take into consideration
the opinionof the employees. This can lead to adverse problems in the Organization. Therefore by
this study I have attempted to put forth the opinion of the employee with respect to the
acceptability of the Performance Appraisal System.
To exercise social control and predict changes in behavior.
The ultimate object of my research is to make it possible to predict the behavior of individuals by
studying the factors that govern and guide them.

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Research Design
A research design is a type of blueprint prepared on various types of blueprints available
for the collection,measurementandanalysisof data.A researchdesigncallsfordevelopingthe most
efficient plan of gathering the needed information. The design of a research study is based on the
purpose of the study.A researchdesignisthe specificationof methodsandproceduresfor acquiring
the information needed. It is the overall pattern or framework of the project that stipulates what
information is to be collected from which source and by what procedures.
Sampling
An integral component of a research design is the sampling plan. Specifically, it addresses three
questions Whom to survey (The Sample Unit) How many to Survey (The Sample Size) & How to
select them (The Sampling Procedure) Making a census study of the whole universe will be
impossible on the account of limitations of time. Hence sampling becomes inevitable. A sample is
onlya portionof the total employeestrength.AccordingtoYule, a famous statistician, the object of
sampling is to get maximum information about the parent population with minimum effort.
Methods of Sampling
Probability Sampling is also known as random sampling or chance sampling. Under this sampling
designeveryindividual inthe organizationhas an equal chance, or probability, of being chosen as a
sample.Thisimpliesthatthe sectionof sample itemsisindependentof he personsmaking the study
that is, the sampling operation is controlled objectively so that the items will be chosen strictly at
random.
Non Probability Sampling is also known as deliberate sampling, purposeful and judgmental
sampling. Non-Probability Sampling is that which does not provide every individual in the
Organization with a known chance of being included in the sample.
Data collection method
Collectionof dataisthe firststepinstatistics.The data collectionprocessfollowsthe formulationfor
research design including the sample plan. The data can be secondary or primary.

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Collection of Primary Data during the course of the study or research can be through observations
or through direct communication with respondents on one form or another or through personal
interviews.I have collected primary data by the means of a Questionnaire. The Questionnaire was
formulated keeping in mind the objectives of the research study.
Secondary data meansdatathat is alreadyavailablei.e., they refer to data, which has already been
collectedandanalyzedbysomeoneelse.Whenasecondary data is used, the researcher has to look
intovarioussources from where he can obtain data. This includes information from various books,
periodicals, magazines etc.
Research Methodology Adopted
Research Design: Descriptive research
Research Instrument: Structured Questionnaire
Sampling Plan
i) Sample Method: Non-Probability Sampling (Convenience Sampling)
ii) Sample Size: 30
iii) Sample Unit: Employees who do not hold a supervisory position
Sampling Design
Convenience Sampling,asthe 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
a) Primary Data : Structured Questionnaire
b) Secondary Data : Journals, Booklets, Company Data, etc.

51 | P a g e
Q1. How long you have been working in the industry ?
Interpretation: - Out of 30 respondents,numberof employeesthat have worked in the company
for less than 3 Years is 6, for 3 to 5 years is 14 and those who worked for more than 5 years is 10.
years
less than 3
3-5 years
more than 5

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Q2. What do you think is your key role towards the success of the company?
Interpretation : - Out of 30 respondents, number of employees those worked really hard in the
last one year are 16, those area of concern is to grooming people are 8 so that they become better
resources and those prime area waz to manage people as a whole are 6.
0 5 10 15 20

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Q 3. Were you informed about the Performance Appraisal model, used in the
Organization, during your induction?
1) Yes : 20
2) No : 10
Interpretation: Due to the fact that most of the employeeshave gotnoexperience inthissector
before, theydidnotaskaboutthe Performance Appraisal modelusedinthe Organization.The
Respondentsthatsaidthattheywere informedof the model duringthe interview were toldsoat
the discretionof the interviewer. The companyhashowevermade itapoint to informthe employee
aboutthe model before he signsthe acceptance letter.Thispreventsanymbiguitiesand
misunderstandingaboutwhatisexpectedof the employeebeforehe joinsthe Organization.
yes
no

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Q 4. According to you, how often should the Performance Review take place?
Data
1) Once in a week – 8 2) Once a month – 6 3) Every3 months - 10
4) Every6 Months – 4 5) Once a Year- 2
Interpretation: Performance appraisal review isaconstantprocessand lesserthe frequency
betweenthe appraisals,the better.The majoritywantthe frequencyof the appraisal toevery3
months.The employeessaythatthe longerthe frequencybetweenappraisals,the more the chances
of the appraisal notmatchingupto theirexpectationsbecause manyperformancesgetoverlooked.
If the appraisal isdone ona more frequentbasis,the employeehasa chance to findoutthe gapsin
his/ her performance onamore regularbasiswhichwill helpthemtoimprove more ontheir
performance andtherebyeliminate waste.The appraisal doesnotnecessarilyhave tobe aformal
one.Eveninformal performanceappraisalsdonebetweenformal appraisalsbutona more frequent
level willmostcertainlyhelpandgoa longway inimprovingperformance.
0 2 4 6 8 10

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Q 5) How do you find the Performance Appraisal Model in this Organization?
(Mark all the relevant options)
Data
1) Simple -10 2) Complicated -1 3) Objective - 2
4) Subjective - 2 5) Efficient- 15 6) Inefficient - 0
Interpretation: From the above chart it can be inferredthat,a majorityof the sample
respondentshave foundthe Appraisal Model tobe simple andefficient.The Appraisal model has
beenthoroughlydealtwithduringthe trainingsothe employeesknow exactlywhatisexpectedof
them.
0
2
4
6
8
10
12
14
16

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Q 6) In your opinion, does the Performance Appraisal System give a proper
assessment of your contribution to the Organization?
Data
1) Yes – 23 2) No - 7
Interpretation: About76.67% of the respondentssaythatthe Performance AppraisalSystem
doesgive a true and fairviewof theircontributiontothe Organization.Thisdoesincludeemployees
whothinkthat theirratingdoesnotalwaysturn up tobe correct as pertheiropinion.The groupof
respondents,whohave repliedinthe negative,alsoinclude candidateswhosaythatthe appraisal
doesnotturn out to be right mostof the timesbutdo show a fair
Viewsometimes.

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Q 7) What is your Satisfaction level with the current Appraisal System?
Data
1) VeryLow – 0 2) Low – 2 3) Average -5
4) High – 17 5) Very High - 6
Interpretation : The satisfaction level of the Appraisal system is quite high as can be seen from the
graph.
This is a good sign as increased level of satisfaction is the main emphasis of any appraisal system.
The curve tops at the rating of high and this includes about 56% of the population. The bell curve
showsthat 92% have rated the Appraisal systemasaverage, highorveryhigh . The high Satisfaction
level inthe Systemcouldalsobe due to various reasons like monetary or non-monetary incentives
or growth parameters.
The satisfactionlevelalsobringstolightthe efficiency of the management in devising an acceptable
Appraisal system.
0
5
10
15
20

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Q 8) How important do you think is Performance Appraisal to your
Performance?
Data
1) Not Important– 0 2) LessImportant - 1 3) Important - 7
4) VeryImportant - 15 5) Most Important - 8
Interpretation : This question was put in to find out and analyze the importance of the Appraisal
system to the productivity of the employee. The data clearly shows that the recognition of the
employee s performance does have a direct impact on his / her efficiency.
A vast majority of the respondents affirm that their performance is directly influenced by
recognitions of their performance by the appraisal system. None of the respondents have stated
that the appraisal system had no effect on their productivity.
Thispointsoutto the fact that the Appraisal systemgoesalongwayindetermining the productivity
of the employeesinanOrganization.Thereforeitisveryimportantfor any Organization to devise their
Performance Appraisal System carefully.
0
2
4
6
8
10
12
14
16

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Q9. Promotion, transfer, demotion and suspension is purely based on performance
appraisal.
A. STRONGLY AGREE - 10 B. AGREE - 16
C. NEITHER AGREE NOR DISAGREE - 4
E. STRONGLY DISAGREE - 0
Interpretation: Around 33.33% employees are strongly agreed and 56.67% are agreed with this
statement only 13% employees are neither agree nor disagree it shows the importance of
performance appraisal system.
0 5 10 15 20

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Q10. Training programs are effective for organization and individual development.
E. STRONGLY DISAGREE - 0
Interpretation: 50 % employeesare infavorof trainingprogram.It is goodfor the development
of the employeesaswell asfororganization.
0
2
4
6
8
10
12
14
16

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Q11. Performance appraisal increases employee motivation.
E. STRONGLY DISAGREE – 5
Interpretation: Around20 employees are infavor of increase of employees motivation through
appraisal systemanditwill broughttremendouschanges in the performance of the employees and
rest are not in favor of it because they have there own set of mind for work.
0
2
4
6
8
10
12

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The following are the limitations faced by me during the course of the study
 The sample consisted only of employees in the day shift. Employees of the night
shift were not considered for the purpose of study.
 There is no concrete basis to prove the response given is a true measure of the
opinion of all the employees as a whole.
 Convenient sampling was used as the mode of conducting the research.
 The questionnaire contained mostly multiple-choice questions; therefore many
Respondents may not have given a proper thought before answering the questions.
 The response of the respondents may not be accurate thinking that the
Management might misuse the data.
 Almost all of the questionnaires had the closed-ended question.
 Sensitive company information cannot be displayed in the project report.
 Most respondents might be influenced by their peers in answering the questions.
 Due to the fact that most of the respondents were young, the questions might not
Have been answered with due sincerity.

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FINDINGS AND CONCLUSIONS

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The following are the suggestions and conclusions derived from this particular research study
ObjectivityOne manager's idea of "self-starting ability" can be quite different than another's idea.
The question then arises as to how one objectively evaluates "creativity? If greater amount of
objectivity can be infused into the Appraisal system, it can help to bring more transparency.
Effective Communication
One functionof performance appraisalsis to help employees develop so they can contribute more
effectively.Inorder for the employees to develop and learn they need to know what they need to
change,where (specifically) theyhave fallenshort,andwhatthey need to do. If a manager assigns a
1(unsatisfactory) on a scale of 5, it does not convey much information to an
employee. It just says the manager is dissatisfied with something. In order to make it meaningful
and promote growth,farmore information must be added to the appraisal process and the related
information should be transparently shared with the employee.
Fairness
Most employeesresistbeingclassified atthe low endof the scale.Employeeswho are low rated are
more likely to resist the evaluation of the superior and argue, claiming that personal bias was
involved in the ratings.
Managerial Efficiency
The implementationof aPerformance Appraisal System rests on the shoulders of the manager and
he must ensure that it is done properly. A good manager can make an average appraisal system
work and vice-versa.

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BOOKS –
 K. Ashwathappa “Human Resource Management” 5th
edition.
 C.B Mamoria and S.V. Gannker “Personnel management” 5th
edition.
 T.V. Rao “Appraising and Developing Managerial Performance”
 L.M Prasad “Human Resource Management”
 M.L Monga “Management of Performance Appraisal”
 V.S.P.Rao “Human Resource Management”
 T.N. Chabra “Human Resource Management”
 C.R.Kothari. “International Marketing Management”
JOURNALS AND MAGAZINES –
 Booklet of HRH Group of Hotels
 Brochureof Eternal Mewar and HRH Group of Hotels
 Synopsis of Maharana of Mewar Charitable foundation

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REFERENCES-
 www.hrhhotels.com
 www.pmintpc.com
 http://en.wikipedia.org/wiki/Performance_appraisal
 www.businessballs.com
 http://www.performance-appraisal.com/intro.htm
 http://www.performancemanagementguide.com/
 www.openlearningworld.com
 www.google.co.in
 www.yahoo.com

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Q1. How long you have been working in the industry?
a) Less than 3 b) 3-5 years c) More than 5 years
Q2. What do you think is your key role towards the success of the company?
a. You worked really hard in the lastone year or so and ensured that everything is in proper place
b. Your area of concern was grooming people so that they become better resources.
c. Your prime work area was to manage people as a whole
Q 3. Were you informed about the Performance Appraisal model, used in the Organization, during your
induction?
a. Yes b. no
Q 4. According to you, how often should the Performance Review take place?
1) Once in a week – 2) Once a month – 3) Every 3 months -
4) Every 6 Months – 5) Once a Year -
Q 5) How do you find the Performance Appraisal Model in this Organization? (Mark all the relevant options)
1) Simple- 2) Complicated - 3) Objective -
4) Subjective - 5) Efficient- 6) Inefficient–
Q 6) In your opinion, does the Performance Appraisal System give a proper assessment of your contribution
to the Organization?
a- yes b. no

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Q 7) What is your Satisfaction level with the current Appraisal System?
1) Very Low – 2) Low – 3) Average -
4) High – 5) Very High -
Q 8) How important do you think is Performance Appraisal to your
Performance?
1) Not Important – 2) Less Important - 3) Important -
4) Very Important - 5) Most Important -
Q9. Promotion, transfer, demotion and suspension is purely based on performance appraisal.
A. STRONGLY AGREE - B. AGREE -
C. NEITHER AGREE NOR DISAGREE -
E. STRONGLY DISAGREE -
Q10. Training programs are effective fororganizationand individual development.
E. STRONGLY DISAGREE -
Q11. Performance appraisal increases employee motivation.
E. STRONGLY DISAGREE –

Project Report on Performance Appraisal (College Copy)-Final

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