Dissertation Report

Title of the Dissertation Report PERFORMANCE APPRAISAL AT JINDAL BROTHERS PVT.LTD

Submitted in partial fulfillment of requirements for the award of the degree of
Masters in Business Administration
Under Guidance of: <Guides Name> Submitted by: <Student name> <SMU roll no.>
<Name of the student> <Address of the University>
Declaration I,Deepika Saraswat having Roll No.520922764 of MBA Semester 4 of Sik
kim Manipal University hereby declare that the project entitled Performance Appr
aisal At Jindal Brothers Pvt .Ltd. is an original work and the same has not been
submitted to any other institute for award of any other degree. The interim rep
ort was presented to the guide on 30TH April,2011. The feasible suggestions have
been duly incorporated in consultation with the guide.
Signature of the candidate (Deepika Saraswat) Counter signed <Guide Name>
Acknowledgement: I would like to express my sincere gratitude to the people who
have directly or indirectly helped me throughout in the successful completion of
my project report on STUDY OF PERFORMANCE APPRAISAL at JINDAL BROTHERS PVT. LTD in
GURGAON. I take this opportunity to express my deep sense of gratitude and whol
e hearted thanks to MR. TAPAS RANJAN (HEAD HR) for his valuable guidance and for
giving me this opportunity to complete my training in his organization, and als
o I thank him for sharing his experiences which would prove as a great lesson in
my future professional life I would like to thanks MR.PRASHANT CHOUBEY, MR.SUBO
DH SINGH & MR SARANG KANCHAN for their valuable guidance and also giving me effe
ctive direction and encouragement throughout the training. I take this opportuni
ty to thank my project guide PROFESSOR.WADHWA who has seen me through all the st
ages of the project. I would like to express my gratitude to him for his timely
advice and Guided as per requirement. And also I would like to thank PROFESSOR S
.C.GHOSH for helping me whenever I needed. Above all I thank GOD, Almighty for t
he immense wishes and blessings that gave me motivation and confidence to comple
te this project on time (DEEPIKA SARASWAT)
TABLE OF CONTENTS Title 1. Chapter I Acknowledgement Profile of the Project Guid
e Executive Summary 2. Chapter II Company profile Scope & Objective 3. Chapter I
II Research methodology 4. Chapter IV Performance management 5. Chapter V Data a
nalysis 6. Chapter VI Findings 7. Chapter VII Recommendations 8. Chapter VIII Li
mitations 9. Chapter IX Bibliography 10. Chapter X Appendix 60-71 59 58 57 56 34
-55 19-33 17-18 7-15 16 3 4-5 6 Page No.
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, paramet
ers of evaluation and the essentials of an effective appraisal system.
Further the performance appraisal system of Jindal Brothers Pvt.Ltd.company, col
lected through various primary and secondary sources have been included in the r
eport which gives a fair idea of the kind of appraisal system being followed acr
oss various corporates.
Last, the conclusions and references has been mentioned.
INTRODUCTION
PERFORMANCE APPRAISAL Performance appraisal may be defined as a structured forma
l interaction between a subordinate and supervisor, that usually takes the form
of a periodic interview (annual or semi-annual), in which the work performance o
f the subordinate is examined and discussed, with a view to identifying weakness
es and strengths as well as opportunities for improvement and skills development
. Performance appraisal, also known as employee appraisal, is a method by which
the job performance of an employee is evaluated (generally in terms of quality,
quantity, cost and time). Performance appraisal is a part of career development.
Performance appraisals are regular reviews of employee performance within
organizations.Generally, the aims of a performance appraisal are to:
y y y
Give feedback on performance to employees. Identify employee training needs. Doc
ument criteria used to allocate organizational rewards.
y
Form a basis for personnel decisions: salary increases, promotions, disciplinary
actions, etc.
y y
Provide the opportunity for organizational diagnosis and development. Facilitate
communication between employee and administration
Validate selection techniques and human resource policies to meet federal Equal
Employment Opportunity requirements. Performance Appraisal Summary Performance a
ppraisal, while enabling a manager to identify the training needs of employees,
and evolving a training plan for them, also, serves to meet other objectives. Pe
rformance appraisal satisfies the psychological needs individuals have to know h
ow they are performing their job and increases employees' job satisfaction and m
orale by letting them know that the manager is interested in their progress and
development. Systematic performance appraisal also provides both the firm and th
e employee a careful evaluation, rather than a snap judgement of an employee's p
erformance. Many firms use performance appraisals to plan placements and transfe
rs and to provide input into decisions regarding salary increases, promotions, a
nd transfers. Finally, performance appraisals may be used as a basis for the coa
ching and counselling of individual employees by their superiors. To summarize t
he uses of performance appraisal:
y y y y y y
Performance improvement Compensation Placement Training & development needs asse
ssment Career planning
Job design error detection
CHARACTERISTICS OF AN APPRAISAL SYSTEM Performance appraisal cannot be implement
ed successfully unless it is accepted by all concerned. There should be a common
and clear understanding of the distinction between
evaluation and appraisal. As Patten (1982) argues, evaluation aims at 'objective
' measurement, while appraisal includes both objective and subjective assessment
of how well an employee has performed during the period under review. Thus perf
ormance appraisal aims at 'feedback, development and assessment.' The process of
performance appraisal should concentrate on the job of an employee, the environ
ment of the organization, and the employee him- or herself. These three factors
are inter-related and inter-dependent. Therefore, in order to be effective, the
appraisal system should be individualized, subjective, qualitative and oriented
towards problemsolving. It should be based on clearly specified and measurable s
tandards and indicators of performance. Since what is being appraised is perform
ance and not personality, personality traits which are not relevant to job perfo
rmance should be excluded from the appraisal framework. Some of the important co
nsiderations in designing a performance appraisal system are: Goal The job descr
iption and the performance goals should be structured, mutually decided and acce
pted by both management and employees. Reliable and consistent Appraisal should
include both objective and subjective ratings to produce reliable and consistent
measurement of performance. Practical and simple format The appraisal format sh
ould be practical, simple and aim at fulfilling its basic functions. Long and co
mplicated formats are time consuming, difficult to understand, and do not elicit
much useful information. Regular and routine While an appraisal system is expec
ted to be formal in a structured manner, informal contacts and interactions can
also be used for providing feedback to employees. Participatory and open An effe
ctive appraisal system should necessarily involve the employee's participation,
usually through an appraisal interview with the supervisor, for feedback and fut
ure planning. During this interview, past performance should be discussed frankl
y and future goals established. A strategy for accomplishing these goals as well
as for improving future performance should be evolved jointly by the supervisor
and the employee
being appraised. Such participation imparts a feeling of involvement and creates
a sense of belonging. Rewards Rewards - both positive and negative - should be
part of the performance appraisal system. Otherwise, the process lacks impact. F
eedback should be timely Unless feedback is timely, it loses its utility and may
have only limited influence on performance. Impersonal feedback Feedback must b
e impersonal if it is to have the desired effect. Personal feedback is usually r
ejected with contempt, and eventually de-motivates the employee. Feedback must b
e noticeable The staff member being appraised must be made aware of the informat
ion used in the appraisal process. An open appraisal process creates credibility
. Relevance and responsiveness Planning and appraisal of performance and consequ
ent rewards or punishments should be oriented towards the objectives of the prog
ramme in which the employee has been assigned a role. For example, if the object
ives of a programme are directed towards a particular client group, then the app
raisal system has to be designed with that orientation. Commitment Responsibilit
y for the appraisal system should be located at a senior level in the organizati
on so as to ensure commitment and involvement throughout the management hierarch
y. WHAT IS THE ROLE OF PERFORMANCE APPRAISAL? We've seen from previous discussio
ns, that people are one of a company's most valuable assets. While most assets d
epreciate over time, people, viewed as assets, may actually appreciate. One of t
he manager's major responsibilities is to improve and update the knowledge and s
kills of employees -- appreciation of assets. Performance appraisal plays a sign
ificant role as a tool and technique of organizational development and growth. I
n essence, effective appraisal systems provide both evaluation and feedback.The
main aim of the evaluation is to identify performance
gaps -- when performance does not meet the organizational standards -- whereas f
eedback is necessary to inform employee about those performance gaps. From the e
mployee's perspective, performance appraisal informs them about what is required
of them in order to do their jobs, it tells them how well they have achieved th
ose objectives and helps them take corrective action to improve their performanc
e, and, finally, it may reward them for meeting the required standards. The firm
, on the other hand, needs a performance appraisal system in order to establish
principles of managerial accountability. Clearly, where employees are given resp
onsibilities and duties, they need to be held accountable. One of the functions
of performance appraisals is to ensure that people are accountable for their org
anizational responsibilities. Perhaps the most significant benefit of performanc
e appraisals is the opportunities they provide supervisors and subordinates to h
ave one-on-one discussions of important work issues. During appraisals, subordin
ates and supervisors can focus on work activities and goals, identify and correc
t existing problems, and encourage better future performance. Performance Apprai
sal and Motivation Motivational research has recognized the power of recognition
as an incentive (see Maslow and the Expectancy Theory of Motivation). Performan
ce appraisals provide employees with recognition for their work efforts. The app
raisal system provides the supervisor with an opportunity to indicate to employe
es that the organization is interested in their performance and development. Thi
s recognition can have a positive motivational influence. on the individual's se
nse of worth, commitment and belonging.
Performance Appraisal and Training and Development Performance appraisals identi
fy performance gaps. As such, they provide an excellent opportunity for a superv
isor and subordinate to recognize and agree upon individual training and develop
ment needs.Performance appraisal discussion may identify the presence or absence
of work skills. Further, the need for training can be made more relevant if att
aining the requisite job
skills is clearly linked to performance outcomes. Consolidated appraisal data ca
n also help form a picture of the overall organizational training requirements.
Performance Appraisal and Recruitment Recruitment and selection procedures need
to be evaluated. Appraisal data can be used to monitor the success of a firm's r
ecruitment and selection practices. From this data, the firm can determine how w
ell employees who were hired in the past are performing. Performance Appraisal a
nd Employee Evaluation Employee evaluation is a major objective of performance a
ppraisal. Given the major functions of management -- planning, organizing, leadi
ng and controlling -- it is clear that evaluations (controlling) need to be done
. At its most basic level, performance appraisal is the process of examining and
evaluating the performance of employees. However, the need to evaluate is also
a source of tension as evaluative and developmental priorities appear to clash.
Some management experts have argued that appraisal cannot serve the needs of eva
luation and development at the same time. Performance Appraisal and Total Qualit
y Management (TQM) With the advent of TQM (Total Quality Management) and the ext
ensive use of teams, traditional performance appraisal systems have come under s
ome criticism. For example, rather than motivating employees, conflict may be cr
eated when appraisals are tied to merit pay and when that merit pay is based on
a forced ranking. W. Edwards Deming, the founder of total quality management (TQ
M) has long been associated with the view that performance appraisals ought to b
e eliminated. Many TQM proponents claim that performance appraisals are harmful.
PERFORMANCE APPRAISAL - PROCESS MAP
PERFORMANCE APPRAISAL METHODS 1. Graphic rating scale 2. Paired Comparison 3. Fo
rced choice approach 4.Easy Appraisal 5.3600 appraisal
Graphic Rating Scale: A performance appraisal that rates the degree to which the
employee
has achieved various characteristics. 1)The graphic rating scale is the most com
mon type of appraisal used. 2)Various characteristics such as job knowledge or p
unctuality are rated by the degree of achievement. 3)The rate usually receives a
score of 1 to 5, with 5 representing excellent performance. 4)Some forms allow
for additional comments.
Paired-comparison Approach: A performance appraisal that measures the relative
performance of employees in a group. 1)This is a method of performance evaluatio
n that results in a rank ordering of employees to come up with a best employee.
2)This type of approach measures the relative performance of employees in a grou
p.
Forced-choice Approach: A performance appraisal that presents the appraiser with
sets of
statements describing employee behavior; the appraiser must choose which stateme
nt is most characteristic of the employee and which is least characteristic.
Easy Appraisal: Sometimes the supervisor must write a description of the employe
es
performance. The easy appraisal is often used along with other types of appraisa
ls, notably
graphic rating scales.
They provide an opportunity for supervisors to describe aspects of
performance not thoroughly covered by an appraisal questionnaire.
360-degree Performance Appraisal: Evaluating Employees From All Angles
Traditional performance appraisals, as discussed above, can be both subjective a
nd simplistic. At times, they can also be deemed to be "political". In an attemp
t to improve this methodology, some companies have turned to 360-degree appraisa
ls. 360 appraisals pool feedback from a department's internal and external custo
mers to ensure a broader, more accurate perspective of an employee's performance
. 360-degree performance appraisal is an attempt to answer the question: "How ca
n a supervisor evaluate an employee he or she sees only a few hours each week?"
Benefits of Performance appraisal For the organization:
The organization comes to know the true position of the employees working capaci
ties and the problems they face while working in the organization. This performa
nce appraisal system also acts as a motivating factor for the employees, which h
elps the organization to get better results.
For the appraise:
The appraise fells themselves an important part of the organization, they get a
chance to express their views in front of their superiors; they get a platform t
o express their ideas. The employee comes to know the truth about:  To what exten
t they have achieved their objectives.  In what respect their work has been most
successful.  Are there any aspects of their work, which they have not completed?
Are many other question, which make them assess rightly. .. Guidelines for effec
tive performance evaluation interviews...
y y y y
emphasize positive aspects of employee performance tell employee that the purpos
e is to improve performance, not to discipline conduct the review in private rev
iew the performance formally at least annually (more frequently for those perfor
ming
poorly)
y y y y y
make criticisms specific focus on performance, not personality stay calm; do not
argue identify specific actions the employee can take to improve performance em
phasize the evaluators willingness to assist the employees efforts to improve
performance
y
end by stressing positive
Appraisal Process
In order to obtain a better understanding of how the performance appraisal has b
een put together by The Corporation, the researcher has provided an overview of
the companys performance appraisal process. The researcher felt that the overview
of the performance appraisal process would be necessary, since the process prov
ided a framework for the performance appraisal.
PRE-APPRASIAL STEPS
The performance evaluation can be made for variety of reasons counseling, promot
ions, salary increases, administration or combination of these. It becomes very
necessary to begin by stating the objectives of evaluation programs very clearly
and precisely. The personal appraisal system should address the question who, w
hat, how of performance appraisal. These questions are the components of these a
ppraisal systems which are discussed below individually.
WHO OF THE APPRAISAL OR WHO IS TO RATE.
The immediate superior, the head of the department or any other can rate the per
formance of an individual. In addition to this, sum organizations follow the sys
tem of self appraisal and /or
appraisal by peers. A group, consisting of his senior, peers and subordinates, c
an do appraisal, whoever is rating; he should be trained and impartial. In most
of the organizations the ratings is done by his immediate superior who is consid
ered the best person to understand his subordinates strengths and weaknesses. No
w a day some organizations are following the method of selfappraisal.
THE WHATOF APPRAISAL It is considered with
 Creating and maintaining a satisfactory level of performance of employees in the
ir present job.  Highlighting employees needs and opportunities of for personal gr
owth and development.  Aiding in decision making for promotions, transfers, layof
f and discharges.  Promoting understanding between supervisors and his subordinat
es.  Providing a useful criterion for determining the validity of selections and
training methods for attracting individuals of higher caliber to the organizatio
n.
THE WHEN OF APPRAISAL
The when answers the query the frequency of appraisal? The informal counseling sho
uld occur continuously but the manager should discuss an employees work as soon a
s he gets an opportunity to provide positive reinforcement and use poor work as
basis of training. The time and period of appraisal differs according to the nee
d and nature of the organization.
THE WHERE OF APPRAISAL
The where indicates the location where employee should be evaluated? It is usual
ly done at work place or office of the supervisor.
THE HOW OF APPRAISAL
Under this, the organization must decide what different kinds of methods are ava
ilable and which of these may be used for performance appraisal. On the basis of
comparative advantages and disadvantages, the nature and philosophy of manageme
nt and the needs of an organization; the method of appraisal is decided.
COMPANY PROFILE Jindal Brothers Pvt. Ltd. specializes in Design, Engineering, Fa
brication and Erection of PreEngineered Metal Building Systems. The Group is wel
l known in the Middle East & India for the quality of the products and services
offered. In 1998, Jindal Brothers Pvt. Ltd started its journey in India by setti
ng up State of Art manufacturing facility at Manesar, Gurgaon. Design and Detail
ing work is carried out by highly skilled Engineers with computed aided design a
nd drafting facilities at the Companys Head Office at New Delhi. Their objective
is to deliver cost effective, quality Pre-Engineered Metal Buildings within agre
ed time schedules to their Customers. Jindal Brothers Pvt. Ltd. maintains high d
egree of professionalism at all levels, a commitment needed to maintain highest
possible standards. Every project is executed with Micro Planning, to achieve th
e Milestones set out in the contract. This combined with quality of their produc
ts has earned us reputation in the Market Place. Corporate giants, both National
and Multinational, have complimented their strategy of providing single point r
esponsibility for Supply and Erection with highly motivated and trained In House
Project Management Team to handle projects, whether it is small or big, simple
or complex. More than 500 Pre-Engineered Buildings have been installed across th
e length and breadth of their Country. This experience corroborates their claim.
Regional / Area offices across the Country are fully equipped to provide pre-or
der and post order service to their valued Customers. Organizational effectivene
ss depends upon the level of performance of its employees. Hence the level of pe
rformance has to be ensured. Periodic stock taking of the qualitative state of t
he man power is of vital importance to an organization and the organization trie
s to collect the relevant data through the tool of performance appraisal reports
. Thus performance appraisal is essential for performance effectiveness and effi
ciency of the organization and also for carrying out administrative decisions re
garding human resources. The correctness of the decision will depend heavily upo
n the validity of the data gathered through appraisal system.
The JINDAL BROTHERS is a relatively an older organization and has been restructu
ring its Human Resources Systems and Policies in alignment with the current busi
ness environment. I have therefore taken up this project with an aim to study th
e existing system of performance appraisal so that this might help other organiz
ations to follow the same.
Services Pre-Engineered steel buildings are designed and fabricated to clients re
quirements in accordance with the Universal standards. A pre-engineered steel bu
ilding consists of four major groups of components namely primary members, secon
dary members, metal roofing/wall cladding and connection fasteners. These compon
ents are designed that they are compatible with each other. The fabrication of t
hese components is carried out in factory under strict quality control as per de
tailed shop drawing. These components are transported to site with proper markin
gs and assembled at site as per erection drawings. Knowledge Hub / Brain Ware Th
ey call this the knowledge Hub, a world class Design & Engineering Office manned
with team of experienced professionals and equipped with latest sophisticated d
esign tools which distinguishes Jindal Brothers Pvt. Ltd. from others. Stadd Pro
, MBS, AUTOCAD, Primavera, MS Projects are among the few Engineering & execution
tools in use at Jindal Brothers Pvt. Ltd. that delivers the fastest solution at
the best of engineering practices applied in a true international design enviro
nment. The Brain House offers intelligent engineering solutions and supports pos
t order functions with general arrangement, fabrication and erection drawings. T
he computerized drafting, detailing and logic programs enable user friendly deta
ils to simplify manufacturing process and erection methods. The Jindal Brothers
Pvt. Ltd. knowledge archives has vanity of standards and design codes such as AI
SC, AISI, MBMA, AWS, UBC, ASCE, IBC, IS and many others to suit customers need of
a Pre-Engineered building at any place or country. The Jindal Brothers Pvt. Ltd
.s consistent efforts in research & development and global sourcing of material h
ave positioned the Organization as a lead runner in introducing innovative ideas
and products in the market place.
Manufacturing Facility:  Their State-of-the-art manufacturing facility is located
at Manesar. It houses special equipments to produce quality pre-engineered buil
dings such as:  Automatic Beam Welding Line  Plate Shearing Line  Radial Drilling M
achine  Cold Roll Forming Line  Hydraulic Press Break Line  Automatic Shot Blasting
Line  The welding process is as per American Welding Society Standards. (AWS). A
ll welders are qualified to required standards.  Well defined process on the shop
floor ensures smooth flow of material and productivity.  All structural componen
ts to complete Pre-engineered building are produced in-house and go through stri
ngent quality checks prior to dispatch.  All major raw materials and bought out i
tems are sourced from a Panel of approved supplier to ensure quality and timely
supplies.
Automatic Welding Machine
Purlin Roll Forming Machine
Roofing Profile Line
JINDAL BROTHERS India Projects:::
Location Washim
Client ITC Grain Godown Cafeteria Dept. Store
Bawal
YKK (SMCC Construction)
Jagdishpur
ITC Grain Godown Cafeteria
Vatva , Ahmedabad
MIDCO Containers Pvt. Ltd
Delhi Pune Mandsour
Giex Foods S.M. Auto Eng. ITC Grain Godown
Cafeteria Dept. Store Amaravati ITC Dept. Store Gurgaon Chandouli Daman Delhi SM
CC ITC Enercon Food Processing Equipment
Bhuj Delhi Delhi Sri Perumbudur Faridabad Gurgaon Gurgaon Kanpur Aurangabad
Essar Construction Jindal Stainless Honda Siel Saint-gobain Tata Iron And Steel
Co. Smcc - Kienfie Smcc - Kinzoku Hargovind Bajaj Gran Electronics
Chennai Delhi Daman
Ameco Infrastructure Manmohan Pipes Blossom Industries GreenPly Industries
Gurgaon Gurgaon Hyderabad Chenani
SMCC Honda SMCC Honda HBL Nife Meredian Apparel
OBJECTIVES OF THE STUDY
y y y y
To identify the technique of Performance Appraisal followed in Jindal Brothers P
vt. Ltd. To study how the employees are rated against these parameters To identi
fy how the performance of the employees is improved and enhanced To provide sugg
estions & recommendations to improve their Performance Appraisal
REASONS FOR CHOSSING TOPIC:-
RESEARCH METHODOLOGY In order to accomplish the objectives of the study, it is e
ssential to articulate the manner in which it is to be conducted, i.e., the rese
arch process is to be carried-out in a certain framework. The research methodolo
gy, which follows, is the backbone of the study. Data Collection Sources Researc
h work was done from two sources: (1) Primary data (2) Secondary data Primary da
ta was collected by questionnaire and interview in the organizations. The questi
onnaire comprised of closed and attitude questions. The opinion on existing Perf
ormance Appraisal practices and their affectivity were collected through questio
nnaire which was circulated to all the employees at all levels and the results h
ave been analysed on the basis of agree and disagree. The methodology for collec
tion of data also included interviews and discussion with the top management of
the organization. Secondary data: It was collected by reviewing different litera
tures, from published books, management journals, articles published by the othe
r researchers on 360 Degree Appraisal.
Sampling: The total sample size for this project was 4 HR people at Jindal Broth
ers. The information collected through above methods has been tabulated, analyse
d and interpreted. Finally an overall assessment of the contribution of top mana
gement has been made towards improving the effectiveness of the organization.
TYPES OF RESEARCH Research methodology is a way to systematic solve the Research
Problem. It is a procedure, which is followed step by step to solve a particula
r research problem. There are basically four types of researches: 1 2 3 4 EXPLOR
ATIVE RESEARCH DESCRIPTIVE RESEARCH DIAGNOSTIC RESEARCH HYPOTHESIS TESTING RESEA
RCH
Explorative Research:- To gain familiarity with phenomenon or to achieve an insi
ght into it. Descriptive Research:-To poetry accurately the characteristics of t
he particular individual situation or a group. Diagnostic Research:-To determine
the frequency with which something occurs or with which it is associated with s
omething else. Hypothesis Testing Research:-To test a hypothesis of casual relat
ionship between variables. The present project is Descriptive cum Explorative in
nature. It is done to poetry accurately the characteristics of a particular ind
ividual situation or a group. The major purpose of the descriptive research is t
he description of the state of the affairs as it exits at resent. The main chara
cteristics of this method are that the researcher has no control over the variab
les; he can only report what has happened or what is happening.
LITERATURE REVIEW Organizations exist to achieve goals. Goals are only met when
individual employees efforts matches with policy of the organization and thus br
inging out success and effectiveness. The assessment of how successful employees
have been at meeting their individual goals therefore becomes a critical part o
f HRM and here comes Performance Appraisal System. Performance appraisal is an i
mportant component of the information and control system. In todays flexible orga
nizations, performance evaluation provides an important way for managers to clar
ify performance goals and standards and to enhance future individual performance
. Thus the purpose of performance appraisal is to improve the organizations perfo
rmance through the enhanced performance of individuals. The performance appraisa
l system: y y y y y y y y Is an organizational necessity Is based on well define
d objective criteria Is based on careful job analysis Uses only job related crit
eria Is supported by adequate studies Is applied by trained qualified raters Is
applied objectively throughout the organization Can be shown non discriminatory
as defined by law
PERFO RMANCE APPRAISAL AND MANAGEMENT, Journal of Performance Appraisal Techniqu
es November 4,2001-Vol.1,No.4pp.418 By Fletcher C Performance appraisal has wide
ned as a concept and as a set of practices and in the form of performance manage
ment has become part of a more strategic approach to integrating HR activities a
nd business policies. As a result of this, the research on the subject has moved
beyond the limited confines of measurement issues and accuracy of performance r
atings and has begun to focus more of social and motivational aspects of apprais
al. This article identifies and discusses
a number of themes and trends that together make up the developing research agen
da for this field. It breaks these down in terms of the nature of appraisal and
the context in which it operates. The former is considered in terms of contempor
ary thinking on the content of appraisal (contextual performance, goal orientati
on and self awareness) and the process of appraisal (appraiserappraisee interacti
on, and multi-source feedback). The discussion of the context of appraisal conce
ntrates on cultural differences and the impact of new technology.
Performance Appraisal as Effective Management or Deadly Management Disease Journ
al of Performance Appraisal Management Jan1,2005- Vol.80, Pages18 by Gregory H.
Dobbins Understanding person and system sources of work variation is fundamental
to performance appraisal. Two divergent perspectives on this issue, the traditi
onal human resource management view and the statistical process control view (De
ming, 1986), are contrasted. Two studies are reported that investigate two speci
fic questions that arise from a broader view of the appraisal process. Results i
ndicate that managers and subordinates believe that typical poor performance has
different causes and that actual productivity levels far outweigh person or sys
tem sources of performance variance in appraisal judgments.
A Contingency Approach to Appraisal Satisfaction Journal of Performance Appraisa
l Approaches,July2009,Vol.49,Pages65 by Gregory H. Dobbins The present study exp
lored the moderating effects of organizational variables on the appraisal charac
teristic-appraisal satisfaction relationship. Analyses indicated that the apprai
sal characteristics of action plans, frequency, and rater training were more pos
itively related to appraisal satisfaction when subordinates experienced role con
flict, were not closely monitored, and supervisors had a large span of control.
The results provide substantial support for conceptualizing appraisal satisfacti
on as a contingent function of both appraisal characteristics and organizational
variables. Implications of the findings for the design of appraisal systems, ap
praisal effectiveness, and future research are discussed.
Differential Performance Appraisal Criteria Journal of Performance Appraisal Cri
teria,Oct2010,Vol.18, pages 72 by Taylor Cox Performance appraisal ratings of 12
5 first-level managers were analyzed to investigate the degree to which the crit
eria used to evaluate the overall job performance of black managers differs from
that used to evaluate white managers. The performance appraisal form included i
tems that measured both the social behavior dimension and task/goal accomplishme
nt dimension of job
performance. The appraisal ratings of both groups on each dimension were correla
ted with measures of overall job performance and promote ability. Results indica
ted that social behavior factors are more highly correlated with the overall job
performance of black ratees than for white ratees. Implications of these result
s for both black managers and organizations are discussed.
A Restatement of the Satisfaction Journal of Performance Hypothesis,Vol.59,Sept
2010,Pages 45 by Dennis W. Organ, This article reviews recent evidence in suppor
t of Organs (1977) argument that satisfaction more generally correlates with orga
nizational prosaically or citizenship-type behaviors than with traditional produ
ctivity or in-role performance. An attempt is then made to interpret just what i
t is in satisfaction measures that provides this correlation, leading to the sug
gestion that fairness cognitions comprise the major factor. Implications of this
interpretation for theory, research, and management practice are offered.
ANALYSIS & INTERPRETATION This chapter deals in tabular presentation results and
their analysis for the purpose of easy reading the section has been divided int
o two parts. * * * Tabular form of Response Inference Remarks on each question
1. In your company, the key competencies required for each job are already ident
ified?
Response Category Very true True Partly true Not true
No. of responses 0 4 9 37
Percentage 0 8 18 74
80 70 60 50 40 30 20 10 0 No. of responses
Very true True Partly true Not true
Inference: Most of the respondents (74%) found the above statement to be Not True.
This was followed by 18% of the respondents feeling that this statement was Part
ly True for their organization. Only 8% of the people found it to be True.
Remarks: Although the appraise does not have a clear understanding of what is ex
pected of him at the beginning of the year (Inference I), both he and the apprai
ser know what his job is all about. This also shows that although an employee kn
ows what his current to do to be rated higher by the reporting officer. The resp
onsiveness in category of Partly True and Not True may be due to the face that j
ob content in Jindal Brothers is flexible and not well defined and some people f
ind it difficult to define their jobs. However, most of the people have a genera
l idea of the scope of their jobs.
2. There are mechanisms that help employees develop their potential for the next
round of job?
Response Category Very true True Partly true Not true
No. of responses 0 5 25 20
Percentage 0 10 50 40
50 45 40 35 30 25 20 15 10 5 0 No. of responses
Very true True Partly true Not true
Inference: Quite a large number of respondents (40%) shared the view that the ap
praisal system did not give a clear understanding of all appraisals, job to both
appraiser and appraise by saying that it was Not True. Only 50% and 10% of the re
spondents felt that the statement was True and Partly True respectively. Remarks: Al
though the appraise does not have a clear understanding of what is expected of h
im at the beginning of the year (Inference I), both appraisee and the appraiser
know what his job is all about. This also shows that although an employee knows
what his current to do to be rated higher by the reporting officer. The responsi
veness in category of Partly True and Not True may be due to the face that job c
ontent in Jindal Brothers is flexible and not well defined and most people find
it difficult to define their jobs. However, most of the people have a vague idea
of the scope of their jobs.
3. Employees regularly receive feedback about their potential for higher level j
obs? Response Category Very true True Partly true Not true No. of responses 0 8
7 35 Percentage 0 16 14 70
70 60 50 40 30 20 10 0 No. of responses
Very true True Partly true Not true
Inference: 70% of the respondents agreed that the appraisal system did not helpe
d them to know their potential to perform at higher levels. Plan their performan
ce well by saying that it was Not True. Only 16% and 14% people felt that this sta
tement was True and Partly True.
Remarks: The above inference shows that the PA system in Jindal Brothers does no
t give feedback about planning for performance to its employees. It helps anticipa
ting work needs in order to arrange work in logical order. It also helps in devi
sing efficient methods to attain predetermined plans. Again due to flexibility i
n job content, some people may have found problems in planning their performance
systematically.
4. Job rotation is practiced widely to help people develop their potential in ne
w areas?
Response Category Very true True Partly true Not true
No. of responses 7 18 25 0
Percentage 14 36 50 0
50 45 40 35 30 25 20 15 10 5 0 No. of responses
Very true True Partly true Not true
Inference: About 50% of the respondents felt that the above statement was Partly
True. It was followed by 36% people feeling that it was True with 14% believing tha
t it was Very True.
Remarks: Job rotation is the most economical way of providing training to the em
ployees. It facilitates both organization and individual development. Job rotati
on gives an individual hand on experience for carrying out various different fun
ctional activities. The performance appraisal system should include this process
in the training need identification performance.
5. The appraisal system provides an opportunity for self-review and reflection?
Response Category Very true True Partly true No. of Responses 0 0 13 37 Percenta
ge 0 0 26 74
Not true
80 70 60 50 40 30 20 10 0 No. of Responses
Very true True Partly true Not true
Inference
:
There is a general agreement on then fact that the PA system in Jindal Brothers
does provide ample opportunity for self-review and reflection. 74% of the people
felt that it was Partly True with 26% agreeing.
Remarks
:
The presence of self-appraisal procedure in the PA appraisal system is an import
ant reason for the above inference. The self appraisal includes questions on maj
or achievements, constraints in performance, type of training required, tasks/ac
tivities undertaken successfully during the year, problems faced etc. It also in
cludes suggestions on making the job interesting and challenging and plans to im
prove effectiveness. Due to this fact, employees may have felt that they were pa
rticipating actively in their own appraisal by self -review and reflection on va
rious issues.
6. Promotions are based strictly on need rather than to reward individuals?
Response Category Very true True Partly true Not true
No. of Responses 0 4 25 21
Percentage 0 8 50 42
50 45 40 35 30 25 20 15 10 5 0 No. of Responses
Very true True Partly true Not true
Inference
:
50% of the respondents believe that the above statement is Partly True This was cl
osely followed by 42% of the respondents rating it as Not True and 8% of the respo
ndents feeling that it was True.
Remarks
:
The performance appraisal is completely need based the organization recognizes a
nd promotes high achievers only if there are vacancies available in the organiza
tion. This has a negative impact on people who are not rewarded and promoted dul
y for their good performance. There should be a system of rewarding employees ei
ther in monetary terms or in terms of recognition.
7. The appraisal system gives each appraisee an idea of what is expected of him
next year? Response Category Very true True Partly true Not true No. of Response
s 0 10 26 14 Percentage 0 20 52 28
60 50 40 30 20 10 0 No. of Responses
Very true True Partly true Not true
Inference
:
52% of the respondents felt that the above statement was Partly True. This was fol
lowed by 28% and 20% of the respondents feeling that it was Not True and True respec
tively.
Remarks
:
Each employee needs to have an idea as to what accountabilities will he have if
his appraisal is given a good remark for working at higher levels. The appraisee
should know his potential, which will go a long way in his higher level jobs.
8. It is designed to aid the appraisee and appraiser jointly understand the form
ers job? Response Category Very true True Partly true Not true No. of Responses
0 14 22 14 Percentage 0 28 44 28
45 40 35 30 25 20 15 10 5 0 No. of Responses
Very true True Partly true Not true
Inference
:
There was a mixed response to the given statement. 44% of the responses consiste
d of Partly True ratings. 28% respondents believed that this was Not True whereas 28
% believed that this was True.
Remarks
:
The above inference implies that Jindal Brothers PA system does not score well in
the aspect of transparency in communicating an employees performance through per
formance review and discussion. The discussions between appraisal processes. The
interaction on self appraisals is not a common feature and is only done on cert
ain occasions (exceptionally good or bad performance etc.) The presence of 44% r
esponses as True may be due to good relationship and open communication shared by
some of the appraiser appraise pairs.
9. The performance appraisal provides an opportunity for self review and reflect
ion?
Response Category very true true partly true not true
No. of Responses 0 2 25 23
Percentage 0 4 50 46
50 45 40 35 30 25 20 15 10 5 0 No. of Responses
very true
true
partly true
not true
Inference
:
Most of the respondents agreed that the appraisal system catered to their develo
pment needs (50% believed that it was Partly True) and it was very closely followe
d by 46% saying it was Not True. There were 4% cases, which believed that it was Tr
ue.
Remarks
:
Although the inference indicates that the PA system allowed mutuality, trust and
open communication between superior and subordinates, there may be chances of b
iases in employees while rating this statement. The answers may have varied depe
nding on proximity etc.
10. The appraisal procedure allows the appraisee to express his developmental ne
eds? Response Category very true True partly true not true No. of Responses 0 8
16 26 Percentage 0 16 32 52
60 50 40 30 20 10 0 No. of Responses
not true partly true True very true
Inference
:
The most common response on above statement was an astounding Not True with 52% pe
ople agreeing that the PA system was free of any biases. It was followed by 32%
saying that it was True and 16% saying that it was Partly True.
Remarks
:
The above inference implies that people are satisfied with the PA system in Jind
al Brothers and believe that it provides scope for developing their potential. T
his may be due to the fact that the self appraised of the appraise invites sugge
stions on job enrichment, training needs and steps to be taken to improve indivi
duals effectiveness.
11. The system has scope to correct the biases of the assessor through a super r
eview?
Response Category very true true partly true not true
No. of Responses 0 2 14 34
Percentage 0 4 28 68
70 60 50 40 30 20 10 0 No. of Responses
not true partly true true very true
Inference
:
68% of the people rated the above statement as Not True 28% believed it was Partly
True with 4% disagreeing by saying that it was True.
Remarks
:
A performance appraisal system, which is perceived as bias -free by its executives
, is an achievement for the organization. In the PA system the reporting officer
appraises a section of people whereas the reviewing officer appraises the perfo
rmance of an entire department. also the reviewing officer is the immediate supe
rior of reporting officer. Any disagreement between the assessments of an employ
ee has to be duly discussed and recorded. Also, any noticeable difference of opi
nion between self appraisal and appraisal by reporting officer has to be account
ed for. All the above factors help in correcting the biases,. if any, of reporti
ng officer.
12. The appraisal system provides for a frank discussion between appraiser and a
ppraisee? Response Category very true True partly true not true No. of Responses
0 6 0 44 Percentage 0 12 0 88
90 80 70 60 50 40 30 20 10 0 No. of Responses
very true
True
partly true
not true
Inference:
An astounding 88% rated the above statement as not true with 12% that it was tru
e.
Remarks
Although, most of the people felt that there was mutuality and trust between app
raiser and appraise, it may again depend on the proximity and relationship share
d by an employee and his/her boss. The ratings may be based, as the employees ma
y have felt that a negative answer may adversely affect them. The reason behind
this conclusion is that a low score on extent of communication and discussion be
tween appraisers and appraise and high score on mutuality and trust give a contr
adictory view.
13. The procedure allows for the communication of CEOs goal to the workforce? Res
ponse Category very true true partly true not true No. of Responses 0 2 10 38 Pe
rcentage 0 4 20 76
80 70 60 50 40 30 20 10 0 No. of Responses
very true
true
partly true
not true
Inference
:
The typical response in this case was Not True, by 76% of the respondents. 20% rat
ed the above statement as Partly True and 4% as True.
Remarks
:
Even if half of the respondents gave a mid-way answer, presence of 44% Slightly T
rue answers give a negative picture of the above statement. This implies that the
business goals are not well integrated with individual goals. There is no direc
t linkage between the management plans and evaluation criteria. This may be due
to the fact that either the business goals are not quantified enough or the mana
gement is not quick enough to communicate its plans to the staff below.
14. The appraisal system brings out the training needs of the employees. Respons
e Category very true True partly true not true No. of Responses 0 3 22 25 Percen
tage 0 6 44 50
50 45 40 35 30 25 20 15 10 5 0 No. of Responses
very true
True
partly true
not true
Inference
:
50% of the respondents believed the above statement to be Not True closely followe
d by 44% people believing it to be Partly True. Only 6% believed it to be True.
Remarks
:
A few people get the training related to their competencies skills that needs to
be enhanced for successful completion of their work. most of the people do not
get adequate training according to changes in their job description i.e. respons
ibilities and KRAS.
15. The performance appraisal system clarifies the career prospects, aspirations
and intentions?
Response Category very true true partly true not true
No. of Responses 0 5 40 40
Percentage 0 10 80 80
80 70 60 50 40 30 20 10 0 No. of Responses
very true
true
partly true
not true
Inference
:
The typical response (80%) for the above statement was Not True 10% employees beli
eved it to be Partly True with an equal 10% employees believing if to be Not True.
Remarks
:
The general picture drawn from the above inference is that all the employees are
not clear as to what the PA system is all about and what is the reason behind i
ts existence. This shows that PA system has acquired an important status in Jind
al Brothers with all employees acknowledging its presence and essence.
16. The appraisal system provides a rational basis for salary recommendations?
Response Category very true True partly true not true
No. of Responses 0 8 14 28
Percentage 0 16 28 56
60
Inference
Remarks

0
very true
40 30 20 10 0 No. of Responses
not true partly true True
:
56% of the respondents felt that the above statement was Not True. 28% responses i
ncluded Partly True ratings whereas 16% responses included True ratings.
:
The employees do not want a fixed increment for their great performance. The com
pany should make recommendations related to salary on the basis of regular perfo
rmance feedback about every employee since the frequency of performance measurem
ent varies from department to department, it is difficult to carry out this work
smoothly.
17. The company relates reward to your performance? Response Category very true
True partly true Not true No. of Responses 0 10 4 36 Percentage 0 20 5 72
80 70 60 50 40 30 20 10 0 No. of Responses
very true
true
partly true
not true
Inference
:`
Most of the respondents (72%) felt that the above statement was Not True. 20% beli
eved it to be True whereas a mere 8% felt that it was partly True.
Remarks
:
The company uses the reward system as a motivating force for enhancing the perfo
rmance of its employees. Rewards should be promptly given to high achievers in t
erms of increment, promotions, increased job responsibilities etc. for their acc
omplishment.
18. What kind of an appraisal system will bring out the best of an employee?
Response Category appraisal by all superiors appraisal by immediate superior
No. of Responses 10 5
Percentage 20 10
appraisal by reference team appraisal by reference team and self.
15 20
30 40
40 35 30 25 20 15 10 5 0 No. of Responses
appraisal by all superiors appraisal by immediate superior appraisal by referenc
e team appraisal by reference team and self.
Remarks
:
This shows that the relationship between appraiser and appraise, in Jindal Broth
ers, with respect to planning the performance is quite good. The subordinate in
planning his performance. The appraiser helps the appraise in testing the soundn
ess of his goals as well as of his plans for achieving them. This implies that t
here is active participation of both appraiser and appraise in performance plann
ing. The reason behind Not True answer may be due to the fact that many jobs in Ji
ndal Brothers are not well defined and therefore an elaborate planning on them i
s not done.
FINDINGS Organization Structure and Design
1- Jindal Brothers is a young, dynamic organization and is going strong on the s
tock market. 2- The company is well aware of the dynamic environment of software
, it is operating and in order to keep it with the pace of the environment it be
lieves in constant up gradation of courses. Organization structure and design of
the company is such that it supports this change. 3- Jindal Brothers has a matr
ix kind of a structure wherein it takes the form of combination of structures. M
atrix structures are adopted became there is more than one factor around which t
he structure can be built. 4- This matrix structure at Jindal Brothers improves
the quality of decision-making where interest conflicts arise and direct contact
s replaces bureaucracy 5- . This increases the motivation of the managers and de
velopment of wider involvement in strategies. Although at times the company face
s high risk of dilution of priorities became e people do not know who is respons
ible for what. 6- An organization is a network of authority, responsibility and
relationships. Different organization structure consists of different type of re
lationships. Line Organization It is the traditional type of organization. It re
fers to a direct chain of command from top to bottom. In the line organization t
he lines of direction are straight and vertical. Authority and responsibility fl
ow vertically in an unbroken straight line from one level to another. Every
superior has complete command over his subordinate and every subordinate has to
report his work to only the senior or to the level above his own level. Staff Or
ganization Staff may be of three types: 1.)Personal Staff: It consists of person
al assistants attached to individual line executives. Personal staff is employed
to carry out those responsibilities of an executive, which he cannot or does no
t want to delegate to others. 2.)Specialized Staff: It consists of specialists i
n different functional areas e.g. personnel, accounting, legal and public relati
ons etc. A specialized staff department serves as a fountainhead of expertise fo
r the entire concern. 3.)General Staff: IT INCLUDES A G ROUP O F EXPERTS ATTACHE
D TO THE CENTRAL OFFICE AND IT PROVIDES G ENERAL ADVICE MOSTLY TO THE TO P MANAG
EMENT. Complaint Handling As part of the process for capturing customer complain
ts and acting on them, Jindal Brothers has procedures that ensure that each cust
omer complaint is captured, recorded and reported as part of a formal review sys
tem. The process includes related activities such as escalation of a problem, tr
acking each complaint to closure, and creating new procedures (or modifying exis
ting ones) to prevent similar problems from repeating in the future.
Employee Excellence At Jindal Brothers they believe that they can build a world
class structures. Their vision document, which drives each employee as well as t
he organization itself,
reflects Jindal Brother's commitment towards customers and employees. Starting f
rom the recruitment process and culminating in annual reviews, Jindal Brothers h
as quality processes for tracking and maintaining quality standards.
Recruitment For recruitment, Jindal Brothers administers various tests to the ap
plicant. These include aptitude tests, IQ tests, management tests, and personali
ty tests. Each of the tests captures different information about the individual
so that Jindal Brothers can ensure that the person is appropriate for the job an
d will fit into the company culture.
Goal Setting Before starting on the job, employees discuss their role and respon
sibilities with their supervisors. This results in the setting of goals and obje
ctives for each individual for the coming year. This process clarifies the expec
tations from each individual during the year. Each employee is expected to monit
or his/her goals by filling in a focus report every month, which is then discuss
ed with the supervisor.
Training Jindal Brothers recognizes the fact that the skills of employees need t
o be upgraded constantly. Jindal Brothers trains each and every employee continu
ally through the year. In fact, Jindal Brothers has one of the highest training
days per employee in the world: each Jindal Brothers employee receives over 11 d
ays of training each year. Jindal Brothers has an employee training division whi
ch conducts in-home e, residential training programs exclusively for Jindal Brot
hers employees.
PERFORMANCE APPRAISAL AT JINDAL BROTHERS While on the job, performance reviews o
f every employee are done every quarter. The reviews are done with a view to hel
ping the individual excel at his/her workplace. In case there are any training r
equirements, these are noted and acted upon in the coming quarter. Also, the goa
ls and objectives for the employee are re-visited for The performance appraisal
mechanism is carried out at Jindal Brothers for promotional purposes These are d
one so as to motivate the employee and improve his performance level. The method
is as follows: a) Establishment of performance standards with the employees b)
The goals are set mutually as per measurable standards. c) The actual performanc
e is hence measured. d) After measuring of the actual performance, the same is c
ompared with the standards set e) The appraisal is then discussed with the emplo
yees. f) And finally, if need arises corrective action is initiated. For this pu
rpose the corrective action is actually identified through brainstorming exercis
es initiated by the departmental heads at all the Jindal Brothers. It is then me
asured as a tool to evaluate the past performances of the employees. Some of the
methods used at Jindal Brothers are: 1. Key Performance Index 2. 360 Degree Fee
dback 3. Paired Comparisons 4. Behaviorally Anchored Rating Scale
1. KPI-Key Performance Index It is based on the performance level of the employe
e generally classified on the basis of: y y y y Targets achieved Ratings through
students feedback forms Punctuality and regularity Day to day performance
This is given after every module at the centers. Thus we can observe that the ap
praisal system is not a biased one but based on performance and productivity bas
is. All the respective heads of the employee together with the senior persons at
the center brainstorm and then give the promotion. 2. 360 Degree Feedback This
feedback system involves the participation of Top Management. Thus the feedback
given by these members at Jindal Brothers is considered under a holistic view an
d then the employee is given a performance appraisal. This evaluation method inv
olves 40% feedback from the coworkers which says that the employee should not on
ly maintain good rapport with the senior or junior but majorly with the coworker
s also.
3. Paired Comparisons The evaluator compares all possible pairs of subordinates
on their overall ability to do the job. Due to the subjectivity of evaluating ov
erall performance some managers me e a number of different job related dimension
s when comparing.
4. Behaviorally Anchored Rating Scale (BARS) It is a sophisticated method of eva
luating the employee based on the employee behavior. It is a numerical scale tha
t is anchored by the seniors of the organization at various centers. This is hig
hly confidential and the information is sent in sealed envelopes and opened only
at the time of the final evaluation. There is no further discussion regarding t
his scaling, thus it is not given enough weightage.
SURVEY FINDINGS In this section, basic data for a group of 100 employees from lo
wer, middle, senior and top managers is presented on various attributes of perfo
rmance appraisal. Frequency and frequency percent scores were computed for each
of the groups of the entire selected variable. 1. Finding through the Questionna
ire Through the questionnaire it was found that promotions were and known to mos
t of the top and senior management while middle and lower management were a bit
not clear about it. This could be attributed to the fact that senior and top man
agement were more involved in decision making and policy formulation than are th
e middle and lower management. Same reason could be attributed to the fact that
code 1 managers were absolutely clear of what was expected out of them every yea
r, whereas 50% senior management ware clear or partly clear about the same and t
he about 20% of middle management were not clear about it and still further, the
71% of lower management was not aware of what was expected out of them every ye
ar. 85% of code 4 employees said that they could express their reason of failure
. The responses of 50% of Middle Managers were bit favorable whereas 100% senior
management also thought that they did not get the opportunity to express their
cause of failure. The 60% of top management were portly able to express their ca
use of failure. This may be because the appraisal system is more of less perform
ance based and human factor is by and large overlook. Whereas, at the lower leve
ls of the organization, performance can be quantified, and the managers are made
accountable at the higher echelons the tasks are too complex and therefore canno
t be assessed on the basis of quantified performance and therefore the top and s
enior management believed that the promotions are also for motivation whereas th
e attitude wanes as the level of hierarchy goes up. This is probably because of
the appraisal of performance based on the quantity or results. If the employees o
utput is good of better they get promotions and also get motivation to achieve b
etter performance. At the higher levels the results are more of subjective natur
e therefore promotions does not accrue on the basis of quantified results only.
Most of the managers feel that the mechanism for potential appraisal is not adeq
uate. This may be, because the training programmers are also not developed. As f
ar as feedback is from superiors is concerned, most of the top and senior manage
ment were of the view that they constantly receive feedback. This is because, th
ey take decisions crucial to the existence of the organization and therefore are
closely watched and monitored as compared to the employees in the lower & middl
e levels. Again the top management felt that they with their superior decide abo
ut their job but 100% of senior management did not feel the same at all. This is
because again due to power centeredness and power difference in the organizatio
n, being a tall organization the superior are not accessible to their subordinat
e. 60% of lower management thought that their creativity was definitely not adeq
uately recognized whereas the top management believed that the organization enco
uraged creativity. This highlights the gap of communication in the organization
and differences in the perception of culture in the organization by different gr
ades of employee. 70% of lower management thought that the system was not free f
rom biases and same is felt by most of the middle, senior and top
management. This shows that human instincts and behaviors influence the performa
nce appraisal system. 60% of lower management was not clear about the goals and
objectives of the organization. Most of top management thought that they were cl
ear or very clear, about the organization goals. This is because, the power dist
ance is extent and communication system of the organization is not very effectiv
e. This also shows that transparency is lacking in the system. 70% of lower mana
gers thought that the performance appraisal system did not identify their traini
ng needs. 80% of senior managers also thought the same. But the view of top mana
gement differed in the sense that they felt that the system helped them surface
their training needs. The reason being that the training programmes are not full
y developed and are not constantly evaluated in the organization. The top manage
ment felt that there was a scope of super review. The senior management also fel
t a bit the same but lower and middle management keep attending meetings and had
already developed rapport with their superiors and so could easily talk out the
ir appraisal results whereas this is not so for lower and middle management. The
y are not able to approach their senior easily and are therefore could not appea
l for super-reviews. 60% of lower managers said that they do not get opportunity
for self review and reflection. This is because performance appraisal is lackin
g human touch to it. The appraisals are entirely based on performances, overlook
ing the cause of successes and failures. The appraisal system thus does not meet
individuals developmental needs and also does not contribute to employees job sat
isfaction and moral development.
2. Findings from Observation and Discussions The organization believed that self
appraisal is the best for managers and above. To improve interpersonal communic
ation and behavior assessment by peers and subordinates is essential. The perfor
mance of the employees is not regularly monitor and the required feedback is pro
vided to the subordinates from time to time. The appraisals are conducted at fix
ed intervals. The organization believes in using appraisal for rewarding and inc
rements. There was a neither formal nor informal discussion on job specification
and tasks to be accomplished for various departments. There was no formal perfo
rmance appraisal taking place till now in the organization. There fore, there we
re no written records of such activity in the personal files of the employees. H
owever people were being appraised informally by the superiors and got promoted
or incremented accordingly. It would not be wrong to say that interpersonal rela
tions and personal biases (i.e. liking and disliking influence the appraisals in
the organization).The management is in the process of restructuring and develop
ing such policy in the organization.
Learning
1. Function of HR department in a manufacturing firm. 2. Solving hurdles in the
process of appraisal 3.Steel manufacturing process. 4. Manpower required for the
company. 5. Solving employees problems. 6. Organizational structure
RECOMMENDATIONS
1. To improve attendance there should be rewards for those employees who attains
above 95% attendance. 2. There should be training sessions to improve team buil
ding. 3. There should be proper training for appraisal to the employees. 4. In t
he beginning of the year employee must know the performance standards on which h
is/her performance will be judged in end of year. 5. More stress relieving packa
ges should be offered to the mentally stressed staff. 6. Overtime should be take
n care of at time of performance appraisal, which would motivate the employees t
o perform better for longer hours. 7. Performance appraisal should after at prop
er span of time . 8. Performance appraisal should be done by expert person.
CONCLUSION
Performance appraisal is the process of reviewing employee performance vis--vis t
he set expectations in a realistic manner, documenting the review, and deliverin
g the review verbally in a face-to-face meeting, to raise performance standards
year over year through honest and constructive feedback. In the process manageme
nt expects to reinforce the employees strengths, identify improvement areas so th
at one can work on them and also set stretched goals for the coming year. Effect
ive performance management requires a good deal of face-to-face supervisor-emplo
yee 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 signif
icant 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 import
ant decisions for the development of an individual and the organization.
SAMPLE QUESTIONNANIRE
I have undertaken a project on PERFORMANCE APPRAISAL SYSTEM. The information fur
nished by you will help knowing the effectiveness of the present appraisal and r
eward system and if need be designing of a new appraisal system. The data will b
e kept confidential and will be used for academic purpose only.
1. In your company, the key competencies required for each job are already ident
ified. a) Very true c) Partly true b) true d) not true
2. There are mechanisms that help employees develop their potential for the next
rung of job. a) very true c) partly true b)true d) not true
3. Employees regularly receive feedback about their potential for higher level j
obs a) very true c) partly true b)true d) not true
4. Job rotation is practiced widely to help people develop their potential in ne
w areas. a) very true c) partly true b)true d) not true
5. Your company s promotion policies are clearly defined and shared with all emp
loyees. a) very true c) partly true b)true d) not true
6. Promotions are based strictly on need rather than to reward individuals? a) v
ery true c) partly true b)true d) not true
7. The appraisal system gives each appraisee an idea of what is expected of him
next year? a) very true c) partly true b)true d) not true
8. It is designed to aid the appraisee and appraisers jointly understand the for
mer s job? a) very true c) partly true b)true d) not true
9. The performance appraisal provides an opportunity for self review and reflect
ion? a) very true c) partly true b)true d) not true
10. The appraisal procedure allows the appraisee to express his developmental ne
eds? a) very true c) partly true b)true d) not true
11. The system has scope to correct the biases of the assessor through a super r
eview? a) very true c) partly true b)true d) not true
12. The appraisal system provides for a frank discussion between appraiser and a
ppraisee? a) very true c) partly true b)true d) not true
13. The procedure allows for the communication of CEO s goal to the workforce? a
) very true c) partly true b)true d) not true
14. The appraisal system brings out the training needs of the employees. a) very
true c) partly true b)true d) not true
15. The performance appraisal system clarifies the career prospects, aspirations
and intentions. a) very true c) partly true b)true d) not true
16. The appraisal system provides a rational basis for salary recommendations. a
) very true c) partly true b)true d) not true
17. The company relates reward to your performance. a) very true c) partly true
b)true d) not true
18. What kind of an appraisal system will bring out the best of an employee? a)
appraisal by all superiors c) appraisal by reference team b) appraisal by immedi
ate superior c) appraisal by reference team and self.
19. How do you support your subordinates? ______________________________________
_______________________________________________ ________________________________
_____________________________________________________ __________________________
__________.
Bibliography
Aswathappa K, Human Resource & Personnel Management, Tata McGraw- Hill Publishin
g Co. Ltd., New Delhi, Sixth edition 2001 Kothari C.R., Research methodology met
hods & techniques, Wishwa Prakasan ublishing Co. Ltd., New Delhi, Sixth edition
2001. Human Resources Management by P.Subarao
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