A Summer Internship project report on performance appraisal

system in AIRPORTS AUTHORITY OF INDIA

In partial fulfilment of the degree of
Masters of Business Administration
Submitted by
Aryanshi Dubey
[MBA-1ST YEAR Roll.no. 501804021]
Under the guidance of
Mr. Bhimeshwar Yadav
(Asst. Manager HR)

L M Thapar school of Management

(Thapar University, Patiala)
Dera Bassi campus, Mohali-140507
2019
 DECLARATION
This is to declare that I Aryanshi Dubey,(501804021) student of MBA Ist year , have personally
worked on this project entitled “Performance Appraisal Management in Airport Authority of
India”. The data mentioned in this report were obtained during genuine work done and
collected by me. The data obtained from other sources have been duly acknowledged. The
result embodied in this project has not been submitted to any other university or Institute for
the award of any degree.

Date: Aryanshi Dubey

Place: Lucknow (Roll. No: 501804021)

 ACKNOWELDGEMENT
With immense pleasure, I would like to present this project report to Airport Authority of India,
Lucknow. It has been an enriching experience to do this project at Airport Authority of India, I
take this opportunity to thank all those who have helped and inspired me during the course of
my project which should have not been completed without the guidance.

I wish to record my deep sense of gratitude and profound thanks to my industry mentor, Mr.
Bhimeshwar Yadav(Asst. Manager HR) for his valuable guidance throughout this project, and for
providing me the necessary facts and data relevant to this project.

I also express my gratitude to my faculty mentor Prof. Karminderjit Singhwho has been a
constant source of encouragement to me and has been instrumental in bringing about the
successful completion of the project.

I am thankful to all the employees of AAI, for their help and suggestions in conducting the study
.

And above all, I thank the Almighty God for helping me to complete this work successfully

Last but not the least My parents for their moral and financial support and my colleagues with
whom I shared my day to day experience and received lots of suggestions that improved my
work quality.

Aryanshi Dubey

(501804021)
 Executive Summary
For a management student, internship plays an important role during her course, Training
provides a corporate or real world platform to learn practically, MBA degree without any
training or corporate insight is just like food without salt. So industrial training provides a great
learning experience about management concepts and its applications.

This project entitled “Performance Appraisal System” in AAI aimed at studying the performance
appraisal system on employees of any organization that are very important functions because
these decide the most suitable work force, which steers the company to its desired goal.

The project was taken as a part of curriculum of MBA Course, which is compulsory for each
student to have the training in any organization to his or her respective specialization, as to gain
firsthand knowledge of the organization. This exposure enables the trainees to learn effectively
and efficiently.
 TABLE OF CONTENT

CHAPTER TITLE OF CHAPTER PAGE.NO.

1 1. INTRODUCTION
1.1) OBJECTIVE OF STUDY
1.2) INDUSTRY PROFILE
1.3) ORGSNISATIONAL PROFILE

2 LITERATURE REVIEW

3 RESEARCH METHODOLOGY

4 DATA ANALYSIS AND INTERPRETATION

5 FINDINGS, CONCLUSION, RECOMMENDATIONS& SUGGESTIONS.

6 BIBLIOGRAPHY

7 ANNEXURE
 CHAPTER 1

INTRODUCTION
Performance appraisal or merit rating is one of the oldest and most universal practices of
management. Performance appraisal is a method of evaluating the behavior in the works pot,
normally including both the qualitative and quantitative aspects of job performance.

A formal defining by C.Heyel : “Performance appraisal is the process of evaluating the

performance & qualification of the employees in term of the requirements of the job for which
he is employed for the purpose of administration including placement, selection for promotion,
providing financial rewards & other actions which require differential actions among the
member of a group as distinguished from action affecting all members equally.”

According to Dale S. Beach: “Performance appraisal is the systematical Evaluation of the

individual with regard to his or her performance on the job and his/her potential for
development”

According to Shubin: “Evaluation is the systematic appraisal of the employee’s personality traits
& performance on the job & is designed to determine his contribution & relative worth to the
firm.”

According to Deal Yoder: All formal procedures used in working Airports Authority of India to
evaluate personalities and contributions and potentials of group members.”

A formal definition of Performance appraisal is that, “Performance appraisal is the systematic

evaluation of the individual with respect to his or her performance on the job & outcomes to
discover how & what the employee is presently performance on the job & how employees can
perform more effectively in the future so that the employee, Airport Authority of India &
society all benefit.”
Performance appraisal followed by AAI, Lucknow

Performance appraisal

KRAs Routine responsibilities competencies

Performance and development planning

Mid-year review

Feedback & coaching

Final Review

Final score

Background of study

Final Performance Rating

In an increasingly competitive world and changing business environments, organizations need
effective strategies to manage businesses, deliver services and goods to customers. Markets,
products, technology and competitive conditions are rapidly changing; therefore, all organizations
must possess the capacity to adapt to these changes effectively.

Managing performance is a continuing responsibility for managers and team leaders. Strategies
for managing performance are concerned with how the business should be managed to achieve its
goals and they will refer to the performance measures such as the balanced scorecard (Kaplan and
Norton, 1992).

Performance management process has come to the fore in the recent years as a means of providing
a more integrated and continuous approach that was provided by previous isolated and inadequate
merit rating or performance appraisals.

For the appraisals to be effective, the top management must be supportive in providing
information, clear performance standards must be set, the appraisals must not be used for any other
purpose apart from performance management, and the evaluations must be free from any rating
biases (Goff & Longenecker, 1990).
 Organizational profile

AIRPORTS AUTHORITY OF INDIA

  Type: PSU
 Industry: Aviation Sector
 Founded: 01/April/1995
 Headquarter Rajiv Gandhi Bhawan, Safdarjung Airport, New Delhi-110003
 Key people: Dr. Guru Prasad Mohapatra (Chairman)
B.S. Bhullar
D S.Suresh(member-Finance)
Anuj Aggarwal (member-HR)

AK Dutta (member-ANS)

 Products: Airport Management

 No. of Employees: 22,000

The Airport Authority of India or AAI is a statutory body (created through Airports Authority of
India act 1994); working under the civil aviation, government of India is responsible for
creating, maintaining and managing the civil aviation infrastructure in India. It provides the
communication navigation surveillance/Air Traffic Management (CNS/ATM) services over Indian
Air space and adjoining oceanic areas.

AAI has four training establishments viz. The civil aviation Training college (CATC) at Prayagraj
and its extensions at Hyderabad (CATC-HTC), Indian avigation Academy(National Institute of
avigation) management and research (NIAMAR) Society at Delhi(a joint venture of AAI,
Directorate General of Civil Aviation(India) and Bureau of Civil Aviation security, Govt. of India
and fire training centers(FTC) at Delhi and Kolkata.

History

The government of India constituted the international Airport Authority of India (IAAI) in 1972
to manage the nation’s international airports while the National Airports Authority (NAA) was
constituted in 1986 to look after domestic airports. The organizations were merged in April
1995 by the act of parliament, namely, Airports Authority of India Acts, 1994, has been
constituted as a statutory body, and was named as Airports Authority of India (AAI).

Functions

 Design, Development, operations and maintenance of international and domestic

airports and civil enclaves.
 Control and Management of Indian Airspace,extending beyond the territorial limits of
the country, as accepted by ICAO.
 Construction, Management and Modification of passenger terminals.
 Development and Management of Cargo terminals at international and domestic
airports.
 Provisions of passenger facilities and information system at the passenger terminal at
airports.
 CHAPTER-3
Research Methodology
Research methodology is the systematic way to solve the research problem. It may be
understood as a science of studying how research is done scientifically. It is necessary
for the research to know not only the research methods/ techniques but also the
methodology.
Research design is a conceptual structure with the help of which research is conducted.
There is no unique method which can eliminate the elements of undertaking both of
undertaking both research methodologies more than any other procedures can
minimize the degree of uncertainty. Thus, it reduces the probability of making a wrong
choice amongst the alternative course of action. In this research, descriptive research
design is been used. A descriptive research study is concerned with describing the
characteristics of the particular field of group. The study is done for specific purpose
with the help of facts collected. But such activities overlap continuously and do not
follow a strictly prescribed sequence.
Various steps are involved in a research process are not mutually exclusive; nor are they
separate and distinct. They do not necessarily follow each other in any specific order
and the researcher has to be constantly anticipating at each step in the research process
the requirements of the subsequent steps.

However, the following order concerning various steps provides a useful procedural
guideline regarding the research process. The design includes the following steps:

 Formulating the research problem;

 Extensive Literature survey;
 Developing the Hypothesis;
 Preparing the research design;
 Determining the sample design;
 Collecting the data;
 Execution of the project;
 Analysis of project;
 Hypothesis testing;
 Generalization and interpretation;
 Preparation of the report and presentation of the result;
 RESEARCH OBJECTIVE
The objective for doing my research report is to make myself capable for moving
forward in corporate world and to gain knowledge & experience & to know how to work
in Airports Authority India environment. It will help to gain more and more about
corporate sector, which is very essential for me to do. Therefore, I joined Airports
Authority of India, Lucknow to improve my capabilities.

Main Objectives
 To know about the system of performance appraisal in Airports Authority of
India.
 To study the awareness of the employees regarding the appraisal system in
Airports Authority
 To evaluate the effectiveness of appraisal system in AAI
 To know the satisfaction of the employees, with appraisal system followed in
AAI.

SUB-OBJECTIVE
 Are the present performance appraisal is sufficient enough to analyze the ability
of a AAI.
 To see the difference between theoretical knowledge and practical knowledge.

SCOPE OF THE STUDY

It provides useful information for research and also introduces the researcher with the
practical problem faced in the company. This research is very important for any Human
Resource student to gain a real time experience. I have done my reseach in Airports
Authority of India in performance appraisal.
There are many departments in AAI but my research work is confirmed with Human
Resource department where I understood how a performance appraisal system should
be done.
SAMPLE DESIGN
The collection of raw allows the manager to see the real scenario and then take a
decision as per the data obtained. The sample design is exploratory

Defining the sample method: The sampling methods chosen were:

Simple random sampling-
Every single employee I surveyed is a potential employee

Convenience sampling: A convenience sample chooses the individuals that are easiest
to reach or sampling that is done easy. Convenient sampling does not represent the
entire population so it is considered bias. We have used our own contacts and resources
to target potential employees from local, private and government offices. The purpose
of using this sampling is to get the employees.
SAMPLE PLAN
1. The primary objective of the research is performance appraisal system of AAI.
2. The secondary objective of research is to prove that performance appraisal of
the employees is more than that of the employees of AAI.
To suggest ways to increase the level of job satisfaction.

Sample techniques: The next step is to determine the sources of data. The researcher
has to decide weather he has to collect primary data or depend exclusively on
secondary data.

Sometimes research study based on both primary and secondary data.

In today’s world correct information is the key to success. Data that is used in this
project comprises of primary data.

Primary data- primary data is the data that is not already available. Primary data
collection is necessary when a researcher cant find the data needed in secondary
sources, surveys and experiments.

Three basic means of obtaining the primary data are;

1. Surveys
2. Experiments
3. observations
The choice will be influenced by the nature of the problem and by the availability of the
time and money.

The data collection from two sources;

Primary data: It was collected through the survey of the employees of the AAI.The mode
that is used in this project for collecting the primary data are surveys, book and data provided
by AAI and for secondary data is internet. Surveys or questioning involves using a
questionnaire (data collecting instrument) to ask respondents questions to secure the desired
information. The questionnaire contains two types of question i.e. one is scale based
questions and the other are nominal questions. The data was collected by approaching
individually to the employees depending upon their interest.

Secondary data: it was collected from internet , various books, newspapers and company
literature.

Research Instruments: SPSS.

All the primary data was collected using structured interview method. For this purpose the
tools used was questionnaires in which the respondents were asked to present their views
regarding the performance appraisal system of AAI.

SAMPLE UNIT: 100 employees in AAI

Analyzing the Information: The researcher should see that the project is executed in a manner
and in time. A careful watch should be kept for unanticipated factor. In order to keep the
surveys as much realistic as possible.

To analyze the information collected used were very basic and easy to comprehend. The
measure of controlled tendencies and graphical method were used for analyzing the data.

DATA ANALYSES: The data collected from different sources was classified and tabulated,
according to the requirement of the study. The analysis of the data had been done using the
tools like SPSS, including, Mean test, Factor Analysis and cross tabulations.

RESULTS: The result is given in the forthcoming pages in from finding and analyses and
recommendations thereafter. Research instrument: SPSS.
Mean: Mean also known as arithmetic average, is the most common measure of central
tendency and may be defined as the value, which we get by dividing the total of the values
of various given items in a series by total number of items.

Mean = ∑xi/n= (X1+ X2+ -----------------------------------------Xn)/N

Where,∑= symbol for summation

Xi= value of the ith term

N= Total no of observations.

Cross Tabulations: Cross tabulations are simply data tables that presents the result of the
entire group of respondents as well as results from sub groups of survey respondents. Cross
tabulations enables you to examine relationships within the data that might not be readily
apparent when analyzing total survey responses.

Factor analyses: Factor analyses is a statistical technique for identifying which underline
factors are measured by (a much larger) number of observed variables.

360 DEGREE APPRAISAL SYSTEM:

The appraiser may be any person who has thorough knowledge about job content, contents
to be appraised, standards of contents, and who observes the employee while performing a
job. The appraiser should be capable of determining what is more important and what is
relatively less important. He should prepare report and make judgement without biases.
Typical appraisers are; supervisors, peers, subordinated, employees themselves, users of
service and consultants. Performance appraisal by all these parties is called “360 degree
performance appraisal.”

 Supervisors: supervisors includes superior of the employee, other superiors having

knowledge about the employee and department head or manager. General practice
is that immediate superior appraises the performance, which inturn is reviewed by
the departmental head/ manager.
 Peers: peer appraisal may be reliable if the work group is stable over a reasonably
long period of the time and performs the task that requires interaction.
 Subordinate: The concept of having superior rated by subordinates is being used
most in AAI, today especially in developed countries. Such a novel method can be
useful in other AAI of India provided the relationship between superior and
subordinates are cordial.
 Self-Appraisal: If individuals understands the objective they are expected to achieve
and the standards by which they are to be evaluated, they are to a great extent in
the best position to appraise there own performance.
 Users of service customers: employee performance in service the employees or
users of the services can, better judge AAI relating to the behavior, promptness,
speed in doing the job and accuracy.
 Consultants: sometimes consultants may be engaged for appraisal when employees
or employer do not trust supervisor appraisal and manager does not trust the self
appraisal or peer appraisal or subordinate appraisal.
 CHAPTER-4
DATA ANALYSIS AND INTERPRETATION
In the present chapter, the current performance appraisal of the organization has been examined.
The perception of employees on existing performance appraisal system has been analyzed.
Further the differences in the perception of employees on existing performance appraisal system
such as rater confidence, accuracy of rating and rater decision has been studied. An effort has
been made in the later part of the chapter to study the satisfaction level of employees with
appraisal system, the data has been tabulated and finding has been discussed.

1. The data is the combination of category “Nominal” where the awareness of employees is
checked with the help of cross tabulations and it shows how significant the responses are and how
frequently the appraisal is conducted.

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 8.331a 2 .016

Likelihood Ratio 7.459 2 .024
Linear-by-Linear Association 8.171 1 .004
100

N of Valid Cases

a. 3 cells (50.0%) have expected count less than 5. The minimum expected count is .76.

TABLE:1
 FIG:1
INTERPRETATION:
Table1 and fig1 shows the chi square test of the response given by the employees on the type of
formal or informal appraisal system and it shows how well they are aware about the appraisal
system and how frequently it is conducted, basically cross tabulation is done here to know about
the awareness and relationship of frequency, and the type off appraisal.
2) The data tells us about the awareness related to the the frequency as well as the
methods/techniques used for the same and again cross tabulation is used.

TABLE: 2
 Fig: 2

INTERPRETATION: Table 2 and figure 2 shows the relation of the responses given by the
employees about the techniques and the frequency in which the appraisal is conducted. Data
shows that mostly employees are aware that 360 degree appraisal system is used but few were
there who were not aware. However, other methods such as essay appraisal and behavioral
assessment etc were not used by the organization.
3) The relation of performance appraisal with the improvemental factors and the motivational
factors is been done through compare means.

Report

Performance Appraisal Improvement factor Motivational factor

Mean 4.0123 4.3250

Formal
81 80
N

Mean 4.5789 4.6842

Informal
N 19 19

Mean 4.1200 4.3939

Total
100 99
N

(TABLE:3)
 (Fig:3)

INTERPRETATIONS: table 3 and figure 3 tells us the relation among appraisal system
with the improvement factor and motivational factor. Improvement factors has higher
figure than of motivational factors therefore, it is proves that the formal appraisal
system helps the employees to improve definitely.
4) From question number 5 to question number 12 are totally scale based questions. To know
whether the factors like motivational factor, improvement factor , communications are
satisfactory to the employees or not, Total factor analysis is done. KMO and Bartlett’s test is done
in the same to know how significant they are. The KMO measures the sampling adequacy (which
determines if the responses given with the sample are adequate or not) which should be close than 0.5
for a satisfactory factor analysis to proceed.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .739

Approx. Chi-Square 290.909

Bartlett's Test of Sphericity df 28

Sig. .000

(TABLE:4)

ROTATED COMPONENT MATRIX TEST: The idea of rotation is to reduce the number factors
on which the variables under investigation have high loadings. Rotation does not actually
change anything but makes the interpretation of the analysis easier.

Rotated Component Matrixa

Component

1 2

Appraisal Regularity .798

Motivational factor .746
Improvement factor .591 .440
Greviancial factor .877
developmental factor .774
communication with subordinates .648 .491
evaluation of work by a rater .642
work to be done looked after by rater .523 .429

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.a
a. Rotation converged in 3 iterations.

(TABLE:5)
 CHAPTER:5

Findings

 20% respondents said that performance appraisal is made in the organization monthly,
40% quarterly, 30% yearly, 10% others.
 30% respondents said that conflicts arise between employees after performance
appraisal is made frequently, 25% often, 35% sometimes, 10% never.
 55% respondents said that performance appraisal is made from total output, 35%
behavioral efficiency, 10% both.
 60% respondents said that their occur a type of change after performance of
employees, positive, 35% negative 30%, both.
 45% respondents said that in their opinion performance appraisal is an evaluation of
employees, 30% promotion of employees, 15% said it is a satisfaction proving factor and
10% said it’s a kind of motivation.
 65% respondents said that they receive any incremental in their salary but 35%
respondents said that they do not.
 70% respondents said that they think performance appraisal helps in setting and
achieving goals and 30% says they do not.
 65% respondents said that the performance appraisal improves motivation and job
satisfaction and 35% said that it do not.
 70% said that top-level management is partial in appraisal system and 30% said that
they are not.
 65% said that appraisal system helps in changing behavior and 35% said that it does not.
 66% respondents said that they feel performance appraisal process is sufficient in
appraising the performance of employees but 44% says that it does not.
 65% respondents said that they thought performance appraisal improves Motivation
and job satisfaction.
 55% respondents said that system provides profit to the organization but 45% said no.
Conclusion
At the end of the study we can say how the role of performance appraisal is important for the
organization & the changing environment to satisfy the employees. Various strategies are now
formulated taking in mind the performance appraisal, only their motto of satisfying their
employees and best services will be accomplished.

In today’s world, every organization wants to perform best and expand themselves for that
they enters into the market with its various resources so at every step of working human
resource are required which is able to complete the organization competitors and strengthen
the organization which make them struggle and win which is possible when the organization
uses its work force for that they have formulated and regulated various activities so that they
can be developed in every field and can meet every challenge in their way which again helps in
the development of their career.

So, in this way performance appraisal from organization is important for every organization
without which organization will become there should be change at regular interval of time as
the environment and the condition changes the organization can also walk with the changing
environment otherwise the organization will lose their identity and can be lost in the market.
Suggestions and recommendations
1. The very concept of performance appraisal should be marketed throughout the
organization. Unless this is done, people should not accept it, be it how important to
the organization.
2. To market such a concept, it should not start at bottom, instead it should be started
by the initiative of the top management. This would help in percolating down the
concept to the advantage of all, it includes the top management as well as those
below them. This means that the top management has to take a welcoming and
positive approach towards the change i.e. intended to be brought.
3. Further, at the time of confirmation also, the appraisal form should not lead to
duplication of any information. Instead, detailed appraisal of the employees work
must be done- which must incorporate both the work related as well as the other
personal attributes that are important for work performance.
4. It should be noted that the appraisal form for each job position should be different
as each job has different knowledge and skill requirements. There should not be a
common appraisal form for every job position in the organization.
5. The job and role expected from the employees should be decided well in advance
and that too with the consensus with them.
6. A neutral panel of people should do the appraisal and to avoid subjectivity to a
marked extend, objective methods should be employed having quantifiable data.
7. The time period for conducting the appraisal should be revised, so that the exercise
becomes a continuous phenomenon.
8. Transparency into the system should be ensured through the discussion about the
employees performance with the employee concern and trying to find out the grey
areas so that training can be implemented to improve on that.
Ideally, in the present day scenario, appraisal should be done, taking the view of all
the concerned parties who have some bearing on the employees. But, since a
change in the system is required, it cannot be a drastic one. It ought to be gradual
and the change in the mindset of both the employees and the head is required.
 Limitations
A few limitations and constraint came in way of conducting the present study, under
which the researcher had to work are as follows:
 Although all attempts were made to make this an objective study, biases on
the part of respondents might have resulted in some subjectivity.
 Though, no effort was spared to make the study most accurate and useful,
the “sample size” selected for the same may not be the true representative
of the company, resulting in biased results.
 This being the maiden experience of conducting study such as this, the
possibility of better results, using deeper statistical techniques in analyzing
and interpreting data may not be ruled out.
 ADDITIONAL WORK DONE

1.) Employee Record Keeping:

The Airport Authority of India consists of various different departments such as Finance, IT,
Operations, HR etc. AAI had employee base of 17,379. Each employee needs to fill a personal
information form for the purpose of updation of HR database. Following is the information of
the employees, which is updated in the HR database.

 Employee code
 Aadhar card number
 Pan card number
 Passport number
 Address
 Emergency contact details

Such personal records and confidential employee data is maintained by the HR department of
each airport.

2.) Visiting Card policy:

The senior level personnel who have liaison with the people outside the organization use
visiting cards. There is no visiting card policy at AAI. Different employees were using different
kind of visiting card with distinct format.

It has been propose to introduce a standardized visiting card with same format for all the
employees. It would include employees from each department. It is suggested that the visiting
card policy can be included in HR manual of AAI.

An employee who is authorized for the possession of a visiting card has to fill a visiting card
requisition form, which has to be duly approved by the higher authority.

Templates of Visiting card:

In order to standardize the visiting card various templates were designed for reference
purpose. A template having a particular format was chosen for making a standardized visiting
card. All the authorized employees will use this standardized visiting cards.
 CHAPTER:6

Bibliography:

BOOKS

Robbins, S.P- Organizational Behaviour (Pearson education, New Delhi)

Kothari C.R- Research methodology (2nd Edition)

Aswathapa – Human Resource Management (Tata McGraw Hill) HR and PM.

Journal:

Hal Employee Hand Book (3rd Edition, 2014)

Websites:

 https://www.google.com/search?client=firefox-b-d&q=www.aai.aero
 https://www.google.com/