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Performance Appraisal System: Human Resource Management
Performance Appraisal System: Human Resource Management
PROJECT on
PERFORMANCE
APPRAISAL SYSTEM
3. Introduction----------------------------------------------------------------------------------- 5
7. What is to be evaluated----------------------------------------------------------------------- 8
9. Corporate outlook-------------------------------------------------------------------------------10
10. Conclusion------------------------------------------------------------------------------------- 21
11. References-------------------------------------------------------------------------------------- 22
EXECUTIVE SUMMARY
This project report is a review based on theory as well as the industry outlook of performance appraisal system
of the organization.
The report starts with the Introduction and Literature Review of performance appraisal system that outlines its
history, definitions, purposes, types, process, methods, appraiser, parameters of evaluation and the essentials of
an effective appraisal system.
Further the performance appraisal system of three companies – Bharti Airtel, Kroll Inc and Cocoa Research
Institute of Savana, collected through various primary and secondary sources have been included in the report
which gives a fair idea of the kind of appraisal system being followed across various corporates.
The project gives an outline of what performance appraisal is and how it should be conducted,
defining the process of appraisal, the person who should be involved in the process and wat
should be the criteria involved in appraisal. The data has been collected fro various websites
which have been mentioned in the references. The methods of appraisal have not been included
in the report confining to the word limit and the practical aspect of the topic has been taken care
by giving information about three corporates that are Bharti Airtel, Kroll Inc and CRIS.
INTRODUCTION
CONCEPTUAL FRAMEWORK
I. Background:
1. The concept of Performance Appraisal dates back to the First World War and was then called “Merit Rating
Programme”. Over a period of time, this concept has been through an ocean of change. The areas of evaluation
have also changed.
2. According to Carl Heyel, author/editor on management, philosopher and teacher, “performance appraisal is
the process of evaluating the performance and qualifications of the employees in terms of job requirements, for
administrative purposes such as placement, selection and promotion, to provide financial rewards and other
actions which require differential treatment among the members of a group as distinguished from actions
affecting all members equally”.
II. Change:
1. A few decades ago, the employee used to be appraised by his department head. The department head used to
communicate his feedback and comments only to the immediate superior of the employee. Thus the feedback
was kept confidential in nature. As time passed by, the immediate superior started appraising his subordinate’s
performance and sending his confidential report to the department head. These were the periods when the
employee was not included in his appraisal process. The decisions used to be taken by his superiors relating to
his pay hike, promotion etc. Thus the system was non-transparent.
2. The current process of performance appraisal is much more open and gives some scope for self-appraisal by
the employee. The self-appraisal is followed by a joint discussion with superior and then a decision is taken by
the department head on his promotion, pay hike etc. The feedback relating to his performance is directly given
to the employee. Thus performance appraisal process has gone through the phase of non-transparency to
transparency.
PROCESS OF PERFORMANCE APPRAISAL
PURPOSE OF PERFORMANCE APPRAISAL
1. Administrative
2. Self-improvement
1. Administrative Objectives
(i) Promotions: This is the most important use of performance appraisal. It is to the common interests of both
the management and employees to promote employees into positions where they can most effectively utilize
their abilities.
(ii) Transfers: In an organization, it may be necessary to consider various types of personnel actions such as
transfers, layoffs, demotions and discharges. Such actions can be justified if they are based on performance
appraisal.
(iv) Wage and Salary Administration: In some cases, the wage increases are based on the
performance appraisal reports. In some cases appraisals and seniority are used in combination.
The system allows the employee to evaluate his performance, identify the areas which he finds need
improvement and based on his personal assessment, take the steps he feels are necessary to improve his
performance.
WHEN AND WHO SHOULD CONDUCT APPRAISALS?
Appraisals typically are conducted once or twice a year, most often annually. For new employees, common
timing is to conduct an appraisal 90 days after employment, again at six months, and annually thereafter.
“Probationary” or new employees, or those who are new and in a trial period, should be evaluated frequently –
perhaps weekly for the first month and monthly thereafter until the end of the introductory period for new
employees.
Performance appraisals can be done by anyone familiar with the performance of individual employees.
Supervisors who rate their employees
Employees who rate their supervisors
Team members who rate each other
Employees self-appraisal
IN
CORPORATES
Bharti Airtel is India's largest cellular service provider with more than 79 million subscribers as
of November 2008.It offers its TELECOM services under the Airtel brand and is headed by
Sunil Mittal. The company provides fixed line services, broadband services, telephone services
and Internet access. The company complements its mobile, broadband & telephone services with
national and international long distance services.
Appraisal Method- The method used is work standard approach. The steps involve-
1. Self Appraisal- first the employee given the form to fill and rate himself on the performance
and work objectives fulfilled.
2. Then the immediate appraisal is done by the Reporting manager. The manager conducts a
meeting with every employee, verifies the data filled by him and calculates the scores for the
performance.
3. Regional HR- The form is submitted with regional HR head of the company who furthers add
information about the employee (no of leaves taken etc) and gives his remarks and
recommendations for the appraisal.
4. The final form is sent for appraisal to Corporate Office.
Projection of
month and
E1's for
ordered placed 10
augmenting
for atleast 60%
on BB
of projected
wherever
feasible
Providing
Vendor required
escalation for information
5
switch related within 24hrs
problems for 80% of
logged cases
Customer
Verify the
Metasolv
availablity of
Enabling Order
free KLM's and
Customer Management 10
send 99% of
Delight for Switch
orders to TE
orders
with in 24hrs
Management Verify the 10
of Link resources,raise
Shifting & the order and
Deactivation implementation
Orders with TX
assistance with
in 48hrs for
60% of cases.
Deactivation
orders raised
and sent to
Prov with in
24hrs
Provide the
reports of
Status update
status of
of Internal 5
Internal orders
Orders
to all concerned
on daily basis.
Diversificatio
n of E1's Implementation
where ever of 70% cases 5
50% of BB with in 20days
gets affected
Awareness
of
Process
Self
Completion of 2
development
modules using 15
using E
E-learning
learning
% Achievement
Name, Signature
& Date
Employee Reporting Manager Employee Reporting Manager
Source: RAMAKRISHNA KAKUMANI, Team Leader Technical, 20 Months experience
KROLL INC.
Kroll is a global risk consulting company headquartered in New York. Since its founding in 1972
by Jules B. Kroll, the company has expanded beyond private investigation and security services
into all areas of corporate risk mitigation including background screening, business intelligence,
market intelligence, forensic accounting, electronic discovery, and data recovery, among others.
It is a subsidiary of Marsh & McLennan Companies.
Kroll Inc. follows Category ratings method. The appraisal is done in the following two ways:
1. Graphic rating method: In this method the employees were rated on certain parameters
which marked an employee’s performance on a continuum.
This is basically done for performance appraisal.
TASK ACCOMPLISHMENT
PROBLEM SOLVING
DECISION MAKING
TEAM WORK
COORDINATION
The company uses 4 point rating scale: Below expectation/A; Met most of the expectation /AA;
Met all the expectation/AAA; Met &exceeded expectation /AAAA
OVERALL PERFORMANCE……………………………………..
This is: Poor, satisfactory, good and excellent.
Date……………
Signed…………
(RATER)
2. Checklist method: In this method employees are checked on the basis of their characteristics,
where each of them has a weightage based on which an overall score is calculated. This is done
basically as means of potential appraisal.
PARAMETERS RATING
OVERALL SCORE…………………………….
Date……………
Signed…………
(RATER)
SOURCE: PRATEEK CHOPRA, Background Screening Analyst, 6 months experience.
The Cocoa Research Institute of Savana (CRIS) was originally called the Central Cocoa
Research Station of the Department of Agriculture, and was established in 1937. It is a research
institution, with a long tradition of thorough scientific study. It has well qualified research staff
and has most of the facilities and equipment required for effective work with the soul focus on
research and scientific activities related to cocoa.
TECHNICAL STAFF: Progression from Technical Assistant Grade III to Senior TA usually
takes a minimum of 15 years. Promotion to Senior Technical Officer is by screening and
selection. Thereafter, at each level, one has to spend a minimum of 5 years. Promotions to higher
levels are further constrained by availability of vacancies.
RESEARCH STAFF: Progression from Assistant Research Officer to Research Officer requires
a minimum of 3 years and gaining a second degree. Thereafter, it takes a minimum of 12 years to
move to the position of Chief Research Officer. All promotions are subject to availability of
vacant positions
EVALUATION REPORT -To be completed by Head of Division and signed both by Head and
staff member assessed.
5. Was any warning or disciplinary action taken against the officer during the year? No.
6. Brief description of duties performed: Technical Assistant Grade I in charge of the Main
Nursery Activities.
PART I to be completed by the most senior office in immediate contact with the officer
concerned, being of a grade not below.
Signed…………….
(Supervisor)
Date:
EMPLOYEE APPROVAL
I certify that the above is a fair/unfair assessment of my work and conduct. As I have reached my
maximum since three years now
(Signed)
Signature of officer assessed
Date:
PART II (CONFIDENTIAL): to be completed by Head of Division
Signed..............
SOURCE: http://www.fao.org/docrep/w7505e/w7505e07.htm
CONCLUSION
Performance appraisal is the process of reviewing employee performance vis-à-vis the set
expectations in a realistic manner, documenting the review, and delivering the review verbally in
a face-to-face meeting, to raise performance standards year over year through honest and
constructive feedback. In the process management expects to reinforce the employee’s strengths,
identify improvement areas so that one can work on them and also set stretched goals for the
coming year.
Effective performance management requires a good deal of face-to-face supervisor-employee
interaction. By knowing the subordinates, a supervisor can steer them onto a path of greater
productivity and optimized output. It is one of the most significant and indispensable tool for an
organization as it helps in getting to know the people who work for them. provides information,
which helps in taking important decisions for the development of an individual and the
organization.
REFRENCES
1. http://www.performance-appraisal.com/intro.htm
2. http://www.scribd.com/doc/2918255/PPTPerformance-Appraisal
3. http://www.fao.org/docrep/w7505e/w7505e07.htm
4. http://www.sideroad.com/Human_Resources/employee_performance_appraisal.html
5. http://www.wikipedia.com