Chapter -5

Conclusion and Suggestion

 Chapter – 5
Conclusions and Suggestions

Conclusions
Broadly, this study covers three main objectives: (i) To study the present state of
performance appraisal system and its effectiveness for the employees working in
ceramic tiles industry, (ii) To evaluate contribution of performance appraisal on growth
of ceramic tiles industry; and (iii) To evaluate the contribution of talent management in
performance appraisal. These three objectives are studied in six parts in the Analysis
and Interpretation chapter. Hypotheses are tested subsequently using Chi-Square test,
ANOVA and Correlation. The six parts are as following: first part comprises of the
profile of sampled Ceramic Tiles industry respondents in terms of Gender, Marital
Status, Educational Qualification, Salary, Tenure, Age and Designation, second part
presents dimensions of present state of Performance Appraisal System and its
effectiveness for the employees working in ceramic tiles industry, third part presents
turnover-wise effectiveness of performance appraisal system in ceramic tiles industry,
fourth part presents correlation between the factors of performance appraisal and growth
factors, fifth part discusses analysis of the objectives of performance appraisal and sixth
section represents correlation between the factors of talent management and performance
appraisal.

Part I: First section comprises of the profile of sampled ceramic tiles industry
respondents in terms of Gender, Marital Status, Educational Qualification, Salary,
Tenure, Age and Designation.
Three hundred respondents were selected as sample from ceramic tiles industry. The data
is collected on different independent variables like gender, marital status, educational
qualification, salary, tenure, age, designation and turnover of the company. Continuous
series is used to measure the variables. The missing frequency is found zero in all the
cases. Out of total respondents i.e. 300, the married respondents were 144 (48.0 percent)
and 156 (52.0 percent) are unmarried. 127 (42.3 percent) respondents are graduate, 159

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(53.0 percent) are post-graduate and 14 (4.7 percent) are others. 11 (3.7 percent)
respondents are having salary less than or equal to 10,000 rupees. A large numbers of
respondents are having salary between Rs. 10,001 to 20,000 (35.0 percent). 76
respondents are having salary more than or equal to Rs. 50,001 (25.3 percent). 154 (51.3
percent) respondents are having tenure between 4-6 year, and 13 (4.3 percent)
respondents are having tenure 7-9 and 63 respondents (21.0 percent) are having tenure
more than 10 years. 53 (17.7 percent) respondents are having age less than or equal to 25
years, 86 (28.7 percent) respondents are having age between 26-30 and 36 respondents
(12.0 percent) are having age more than equal to 31-35 years. 50 (16.7 percent)
respondents are having age 36-40, 28 (9.3 percent) respondents are having age 41-45 and
47 respondents (15.7 percent) are having age more than equal to 46 years. 84 (28.0
percent) respondents are from top level management, 97 (32.3 percent) respondents are
from middle level and 119 (39.7) are from lower level management. 124( 41.3 percent)
respondents belong to the companies having turnover less than 700 cr, 111 (37.0 percent)
respondents belong to the companies having turnover 700 cr to 1400 cr and 65 (21.7
percent) belong to the category of more than 1400 cr.

Chi-Square Analysis for the Goodness of Fit

The Chi-square results are used to test the following hypothesis:
H0 : Turnover of the Company and Salary are independent
H1 : Turnover of the Company and Salary are related
The value of the computed chi-square is highly significant at the level of significance to
be 1 percent. This is so because the p-value for this is 0.000 which is below 0.01 i.e. the
assumed level of significance. Since the chi-square is significant, it means that the null
hypothesis is rejected. This means that there is enough evidence to conclude that turnover
of the company and salary for the ceramic tile companies is related.
The Chi-square results are used to test the following hypothesis:
H0 : Turnover of the Company and Tenure are independent
H1 : Turnover of the Company and Tenure are related
The value of the computed chi-square is highly significant at the level of significance to
be 1 percent. This is so because the p-value for this is 0.000 which is below 0.01 i.e. the
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assumed level of significance. Since the chi-square is significant, it means that the null
hypothesis is rejected. This means that there is enough evidence to conclude that turnover
of the company and tenure for the ceramic tile companies is related.
The Chi-square results are used to test the following hypothesis:
H0 : Turnover of the Salary and Age are independent
H1 : Turnover of the Salary and Age are related
The value of the computed chi-square is highly significant at the level of significance to
be 1 percent. This is so because the p-value for this is 0.000 which is below 0.01 i.e. the
assumed level of significance. Since the chi-square is significant, it means that the null
hypothesis is rejected. This means that there is enough evidence to conclude that salary
and age for the ceramic tile companies is related.

Part-II Factor analysis for Effectiveness of Performance Appraisal System in

Ceramic Tiles Industry
Reliability can be defined to the extent to which a variable is consistent in what it is
intended to measure. Several measures of reliability can ascertain the reliability of the
measuring instrument. In the present research, the reliability of the ‘Effectiveness of
Performance Appraisal System in Ceramic Tiles Industry’ is determined by using
Cronbach’s Coefficient alpha. The reliability coefficients indicate that the scale for
measuring ‘Effectiveness of Performance Appraisal System in Ceramic Tiles Industry’ is
quite reliable as the alpha values are 0.838. An alpha value of 0.70 or above is considered
to be the criterion for demonstrating internal consistency of new scales and established
scales respectively. As the value exceeded the minimum requirement, it is thereby
demonstrated that all the variables of ‘Effectiveness of Performance Appraisal System in
Ceramic Tiles Industry’ are internally consistent. ‘Validity’ represents the extent to which
a measure correctly represents the concept of study. To test the Content Validity of the
‘Effectiveness of Performance Appraisal System in Ceramic Tiles Industry’ a
questionnaire is developed by the researcher for which an extensive interaction with the
eminent experts and practitioners has been undertaken.
The two tests indicate the suitability of the data for structure detection. The Kaiser-
Meyer-Olkin Measure of Sampling Adequacy is a statistic that indicates the proportion of
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variance in the variables that might be caused by underlying factors. High value (.734)
indicates that a factor analysis is useful with data. Bartlett's Test of Sphericity tests the
hypothesis that the correlation matrix is an identity matrix, which would indicate that
variables are unrelated and therefore unsuitable for structure detection. Small value (less
than 0.05) of the significance level indicates that a factor analysis is useful with data.
Communalities indicate the amount of variance in each variable that is accounted for.
Initial communalities are estimates of the variance in each variable accounted for by all
components or factors. For principal components extraction, this is always equal to 1.0
for correlation analyses. Extraction communalities are estimates of the variance in each
variable accounted for by the components. The communalities are all high, which
indicates that the extracted components represent the variables well. The Eigen values
greater than 1 are to be extracted, so the first seven principal components form the
extracted solution. The extracted components explain nearly 77.006% of the variability in
the original variables, so complexity of the data can be considerably reduced by using
these components. The Scree Graph shows the extraction of the components on the steep
slope. The first seven components are the part of steep slope. The components on the
shallow slope contribute little to the solution. The components from eight to thirty five
are the part of shallow slope. The big drop occurs between the seven and thirteenth
components, so first seven components are used for further analysis. The scree plot
confirms the choice of seven components.
Drawing upon the variables, first factor is appropriately named as Performance Appraisal
as HR Priority. The variables are well represented and covered under this name. The
performance appraisal data are used by the HR department for other developmental
decisions like job-rotation, job enrichment, etc. Performance Appraisal is the requirement
of the HR department. HR department identifies the training needs through performance
appraisal and it follows up seriously the training needs identified during appraisals. The
performance appraisal system aims at strengthening appraiser –appraisee relationships
through mutuality and trust. It enhances teamwork and cooperation. So, the name
Performance Appraisal as HR Priority is very much justified.
Depending upon the variables, the second factor is named as Performance as an
Employees’ Growth Tool. It represents the variables and supporting this factor is like the
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organizations have strong customer focus within company that permeates every
department. The performance appraisal system helps interested appraisees to gain more
insights into their strengths and weaknesses. It helps to find training requirements based
on the major achievements and failures of employees. The appraisal system provides an
opportunity for self-review and reflection for employees. Current performance appraisal
system promotes career path and growth perspectives of the employees. It provides an
opportunity for a discussion between the appraiser and appraisee on the expectations,
achievements, failures, constraints and improvements required. Overall current
performance appraisal system is a positive aspect. So, the name Performance as an
Employees’ Growth Tool is very much justified.
Relating with the variables, the third factor is named as Performance Appraisal as
Regular Interface. All the variables are covered and represented by this heading. In the
sampled organizations, the respondents believe that the performance review committees
do a thorough job in reviewing and using appraisal data. Performance appraisal system is
a regular exercise and it is practised periodically. It aims at strengthening appraiser –
appraisee relationships through mutuality and trust. So, the name Performance Appraisal
as Regular Interface is justified.
Depending upon the variables, the fourth factor is named as Performance Appraisal as
Right Promotion Tool for Inter and Intrapersonal Development. The entire variables can
be explained under this name. The sampled organizations performance appraisal system
enhances teamwork and cooperation. Performance appraisal system improves working
skills. According to respondents, the current performance appraisal system is right
promotional tool and helpful in employees’ promotion / increment. It encourages open
communication between each appraiser-appraisee pair through performance review
discussion. So, the name Performance Appraisal as Right Promotion Tool for Inter and
Intrapersonal Development is justified.
Depending upon the variables, the fifth factor is named as Performance Appraisal as
Psychological Development Tool. The appraisal documents are clear and there is no
doubt in it. The appraisal system provides an opportunity for self-review and reflection.
Current performance appraisal system enhances employees’ morale and motivation. So,
the name Performance Appraisal as Psychological Development Tool is justified.
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Depending upon the variables, the sixth factor is named as Performance Appraisal as
Right Bridge between Appraiser and Appraisee. In this study, the respondents of the
ceramic tiles industry feel that the appraisal system provides an opportunity for a
discussion between the appraiser and appraisee on the expectations, achievements,
failures, constraints and improvements required. It is the key variable and it is supporting
this name with highest loading (0.836). So, the name of factor Performance Appraisal as
Right Bridge between Appraiser and Appraisee is justified.
Depending upon the variables, the seventh factor is be named as Performance Appraisal
as Valid Measurement Tool. All the variables can be covered under this name. The
respondents feel that the current performance appraisal system provides valid
measurement of performance and it works well and there is no need to change. Hence,
the name Performance Appraisal as Valid Measurement Tool is justified.

Part –III Turnover-wise Analysis of Performance Appraisal System in Ceramic

Tiles Industry
The significant value predicts that the respondents of different categories have different
views regarding the statement ‘current performance appraisal system fulfils
expectations.’ However, the total mean score (4.4633) shows that all the respondents
strongly agree that the current performance appraisal system fulfils their expectations.
The ceramic tiles industry respondents’ depicts different mean values i.e. 4.1855, 4.6486
and 4.6769 for the categories of turnover < 700 crores, 700-1400 crores & >1400 crores
respectively.
The significant value depicts that the respondents of different categories have different
views regarding the statement ‘current performance appraisal system enhances
employees’ morale and motivation.’ However, the total mean score (4.3533) shows that
all the respondents strongly agree that the current performance appraisal system enhances
employees’ morale and motivation. The mean score shows that the ceramic tiles industry
respondents have different mean values i.e. 4.1452, 4.4775 and 4.5385 for the categories
of turnover < 700 crores, 700-1400 crores & >1400 crores respectively.
The significant value shows that the respondents of different categories have different
views regarding the statement ‘Current performance appraisal system is a positive
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aspect.’ However, the total mean score (4.4867) shows that all the respondents strongly
agree that the current performance appraisal system is a positive aspect. The mean score
shows that the ceramic tiles industry respondents have different mean values i.e. 4.1855,
4.6847 and 4.7231 for the categories of turnover < 700 crores, 700-1400 crores & >1400
crores respectively.
It is clearly concluded that ceramic tiles industry respondents strongly agree that the
current performance appraisal system helps in common understanding of the factors
affecting the performance (mean value 4.3133). Significant value (0.051>0.05) shows
that there is no difference in the views of respondents regarding the hypothesis. The null
hypothesis H0: ‘there is no significance difference among the sampled respondents
(turnover-wise) of the ceramic tiles industry regarding the statement that ‘current
performance appraisal system helps in common understanding of the factors affecting
the performance’’ is accepted in this case. It means that there is no difference in the
respondents regarding the current performance appraisal system which helps in common
understanding of the factors affecting the performance.
The significant value shows that the respondents of different categories have different
views regarding the statement ‘overall performance appraisal system is unsatisfactory.’
However, the total mean score (1.7300) shows that all the respondents disagree that the
overall performance appraisal system is unsatisfactory. The mean score shows that the
ceramic tiles industry respondents have different mean values i.e. 2.0645, 1.2162 and
1.9692 for the categories of turnover < 700 crores, 700-1400 crores & >1400 crores
respectively.
It is clearly concluded that ceramic tiles industry respondents strongly agree that the
current performance appraisal system is right promotional tool and helpful in
employees’ promotion / increment (mean value 4.1900). Significant value (0.085>0.05)
shows that there is no difference in the views of respondents regarding the hypothesis.
The null hypothesis H0: ‘there is no significance difference among the sampled
respondents (turnover-wise) of the ceramic tiles industry regarding the statement that
‘current performance appraisal system is right promotional tool and helpful in
employees’ promotion / increment’’ is accepted in this case. It means that there is no
difference in the respondents regarding the current performance appraisal system is right
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promotional tool and helpful in employees’ promotion / increment.
The significant value concluded that the respondents of different categories have different
views regarding the statement ‘current performance appraisal system is not time
consuming.’ However, the total mean score (2.3433) shows that all the respondents
disagree that the current performance appraisal system is not time consuming. The mean
score shows that the ceramic tiles industry respondents have different mean values i.e.
2.9274, 1.9820 and 1.8462 for the categories of turnover < 700 crores, 700-1400 crores &
>1400 crores respectively.
The significant value concludes that the respondents of different categories have different
views regarding the statement ‘current performance appraisal system promotes career
path and growth perspectives.’ However, the total mean score (4.1767) shows that all the
respondents strongly agree that the current performance appraisal system promotes career
path and growth perspectives. The mean score exhibits that the ceramic tiles industry
respondents have different mean values i.e. 4.0887, 4.1532 and 4.3846 for the categories
of turnover < 700 crores, 700-1400 crores & >1400 crores respectively.
It is clearly depicted that ceramic tiles industry respondents strongly agree that the
current performance appraisal system provides valid measurement of performance
(mean value 4.5100). Significant value (0.996>0.05) shows that there is no difference in
the views of respondents regarding the hypothesis. The null hypothesis H0: ‘there is no
significance difference among the sampled respondents (turnover-wise) of the ceramic
tiles industry regarding the statement that ‘current performance appraisal system
provides valid measurement of performance’’ is accepted in this case. It means that
there is no difference in the respondents regarding the current performance appraisal
system provides valid measurement of performance.
It is clearly depicted that ceramic tiles industry respondents strongly agree that the
current performance appraisal system raises competency level of employees (mean
value 4.3700). Significant value (0.932>0.05) shows that there is no difference in the
views of respondents regarding the hypothesis. The null hypothesis H0: ‘There is no
significance difference among the sampled respondents (turnover-wise) of the ceramic
tiles industry regarding the statement that ‘Current performance appraisal system raises
competency level of employees’’ is accepted in this case. It means that there is no
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difference in the respondents regarding current performance appraisal system raises
competency level of employees.
It is clearly depicted that ceramic tiles industry respondents strongly agree that the
current performance appraisal system works as a guide and provide directions to
employees (mean value 4.3100). Significant value (0.401>0.05) shows that there is no
difference in the views of respondents regarding the hypothesis. The null hypothesis H0:
‘There is no significance difference among the sampled respondents (turnover-wise) of
the ceramic tiles industry regarding the statement that ‘current performance appraisal
system works as a guide and provide directions to employees’’ is accepted in this case.
It means that there is no difference in the respondents regarding current performance
appraisal system works as a guide and provide direction to employees.
The significant value shows that the respondents of different categories have different
views regarding the statement ‘employees are aware about performance appraisal
system.’ However, the total mean score (4.3067) concludes that all the respondents
strongly agree that the employees are aware about performance appraisal system. The
mean score concluded that the ceramic tiles industry respondents have different mean
values i.e. 4.1774, 4.4234, and 4.3538 for the categories of turnover < 700 crores, 700-
1400 crores & >1400 crores respectively.
The significant value shows that the respondents of different categories have different
views regarding the statement ‘performance is rightly judged by current performance
appraisal system.’ However, the total mean score (4.2733) shows that all the respondents
strongly agree that the performance is rightly judged by current performance appraisal
system. The mean score shows that the ceramic tiles industry respondents have different
mean values i.e. 4.2581, 4.3604, and 4.1538 for the categories of turnover < 700 crores,
700-1400 crores & >1400 crores respectively.
The significant value shows that the respondents of different categories have different
views regarding the statement ‘current performance appraisal system is fair, consistent
and unbiased.’ However, the total mean score (4.0467) shows that all the respondents
strongly agree that the current performance appraisal system is fair, consistent and
unbiased. The mean score shows that the ceramic tiles industry respondents have

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different mean values i.e. 3.7177, 4.2703 and 4.2923 for the categories of turnover < 700
crores, 700-1400 crores & >1400 crores respectively.
The significant value shows that the respondents of different categories have different
views regarding the statement ‘performance appraisal system enhances teamwork and
cooperation.’ However, the total mean score (4.1133) shows that all the respondents
strongly agree that the performance appraisal system enhances teamwork and
cooperation. The mean score shows that the ceramic tiles industry respondents have
different mean values i.e. 3.8548, 4.2883 and 4.3077 for the categories of turnover < 700
crores, 700-1400 crores & >1400 crores respectively.
The significant value shows that the respondents of different categories have different
views regarding the statement ‘performance appraisal system helps to find training
requirements based on the major achievements and failures of employees.’ However, the
total mean score (4.1667) shows that all the respondents strongly agree that the
performance appraisal system helps to find training requirements based on the major
achievements and failures of employees. The mean score shows that the ceramic tiles
industry respondents have different mean values i.e. 4.0726, 4.3694 and 4.000 for the
categories of turnover < 700 crores, 700-1400 crores & >1400 crores respectively.
The significant value shows that the respondents of different categories have different
views regarding the statement ‘performance appraisal system improves working skills.’
However, the total mean score (4.0733) shows that all the respondents strongly agree that
the performance appraisal system improves working skills. The mean score shows that
the ceramic tiles industry respondents have different mean values i.e. 3.7903, 4.1351 and
4.5077 for the categories of turnover < 700 crores, 700-1400 crores & >1400 crores
respectively.
The significant value shows that the respondents of different categories have different
views regarding the statement ‘performance appraisal system is practised periodically.’
However, the total mean score (4.4733) shows that all the respondents strongly agree that
the performance appraisal system is practised periodically. The mean score shows that
the ceramic tiles industry respondents have different mean values i.e. 4.1694, 4.6306 and
4.7846 for the categories of turnover < 700 crores, 700-1400 crores & >1400 crores
respectively.
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The significant value shows that the respondents of different categories have different
views regarding the statement ‘the performance appraisal data are used by the HR
department for other development decisions like job-rotation, job enrichment etc.’
However, the total mean score (4.1733) shows that all the respondents strongly agree that
the performance appraisal data are used by the HR department for other development
decisions like job-rotation, job enrichment etc. The mean score shows that the ceramic
tiles industry respondents have different mean values i.e. 3.7177, 4.7838 and 4.0000 for
the categories of turnover < 700 crores, 700-1400 crores & >1400 crores respectively.
The significant value shows that the respondents of different categories have different
views regarding the statement ‘The performance appraisal system aims at strengthening
appraiser–appraisee relationships through mutuality and trust.’ However, the total mean
score (4.5033) shows that all the respondents strongly agree that the performance
appraisal system aims at strengthening appraiser –appraisee relationships through
mutuality and trust. The mean score shows that the ceramic tiles industry respondents
have different mean values i.e. 4.3629, 4.7838 and 4.2923 for the categories of turnover <
700 crores, 700-1400 crores & >1400 crores respectively.
The mean score shows that the ceramic tiles industry respondents have different mean
values i.e. 3.3145, 3.5225 and 4.0615 for the categories of turnover < 700 crores, 700-
1400 crores & >1400 crores respectively. The significant value shows that the
respondents of different categories have different views regarding the statement ‘the
performance appraisal system encourages open communication between each appraiser-
appraisee pair through performance review discussion.’ However, the total mean score
(3.5533) shows that all the respondents agree that the performance appraisal system
encourages open communication between each appraiser-appraisee pair through
performance review discussion.
The mean score shows that the ceramic tiles industry respondents have different mean
values i.e. 4.0726, 4.3604 and 4.1538 for the categories of turnover < 700 crores, 700-
1400 crores & >1400 crores respectively. The significant value shows that the
respondents of different categories have different views regarding the statement ‘the
appraisal system helps interested appraisees to gain more insights into their strengths and
weaknesses.’ However, the total mean score (4.1967) shows that all the respondents
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strongly agree that the appraisal system helps interested appraisees to gain more insights
into their strengths and weaknesses.
It is clearly depicted that ceramic tiles industry respondents strongly agree that the
current appraisal system provides an opportunity for a discussion between the appraiser
and appraisee on the expectations, achievements, failures, constraints and improvements
required (mean value 3.9600). Significant value (0.355>0.05) shows that there is no
difference in the views of respondents regarding the hypothesis. The null hypothesis H0:
‘there is no significance difference among the sampled respondents (turnover-wise) of
the ceramic tiles industry regarding the statement that ‘the appraisal system establishes a
communication between the appraiser and appraisee on the anticipation of
achievements, success, failures, checks, constraints and perfection required’’ is accepted
in this case. It means that there is no difference in the respondents regarding that the
appraisal system establishes a communication between the appraiser and appraisee on
the anticipation of achievements, success, failures, checks, constraints and perfection
required.
The mean score shows that the ceramic tiles industry respondents have different mean
values i.e. 4.2097, 4.3604 and 4.3385 for the categories of turnover < 700 crores, 700-
1400 crores & >1400 crores respectively. The significant value shows that the
respondents of different categories have different views regarding the statement ‘The
appraisal system provides an opportunity for self-review and reflection. However, the
total mean score (4.2933) shows that all the respondents strongly agree that the appraisal
system provides an opportunity for a discussion between the appraiser and appraisee self
review and reflection.
The mean score shows that the ceramic tiles industry respondents have different mean
values i.e. 4.4516, 4.5676 and 4.1692 for the categories of turnover < 700 crores, 700-
1400 crores & >1400 crores respectively. The significant value shows that the
respondents of different categories have different views regarding the statement ‘the HR
Department follows up seriously the training needs identified during appraisals.’
However, the total mean score (4.4333) shows that all the respondents strongly agree that
the HR Department follows up seriously the training needs identified during appraisals.

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The mean score shows that the ceramic tiles industry respondents have different mean
values i.e. 3.7661, 4.7838 and 4.0000 for the categories of turnover < 700 crores, 700-
1400 crores & >1400 crores respectively. The significant value shows that the
respondents of different categories have different views regarding the statement ‘the HR
department provides adequate feedback to employees on their rating behaviour and the
decisions taken on their ratings.’ However, the total mean score (4.1933) shows that all
the respondents strongly agree that the HR department provides adequate feedback to
employees on their rating behaviour and the decisions taken on their ratings.
The mean score shows that the ceramic tiles industry respondents have different mean
values i.e. 3.9032, 4.3514 and 4.3385 for the categories of turnover < 700 crores, 700-
1400 crores & >1400 crores respectively. The significant value shows that the
respondents of different categories have different views regarding the statement ‘the
performance review committees do a thorough job in reviewing and using appraisal data.’
However, the total mean score (4.1633) shows that all the respondents strongly agree that
the performance review committees do a thorough job in reviewing and using appraisal
data.
The mean score concluded that the ceramic tiles industry respondents have different
mean values i.e. 1.8306, 1.3784 and 1.5538 for the categories of turnover < 700 crores,
700-1400 crores & >1400 crores respectively. The significant value shows that the
respondents of different categories have different views regarding the statement ‘current
performance system does not work well and it needs to change.’ However, the total mean
score (1.6033) shows that all the respondents disagree that current performance system
does not work well and it needs to change.
The mean score shows that the ceramic tiles industry respondents have different mean
values i.e. 2.9435, 2.4414 and 2.1077 for the categories of turnover < 700 crores, 700-
1400 crores & >1400 crores respectively. The significant value shows that the
respondents of different categories have different views regarding the statement ‘the
appraisal documents are not clear and doubtful.’ However, the total mean score (2.5767)
shows that all the respondents disagree that the appraisal documents are not clear and
doubtful.

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Part IV: Correlation between the Factors of Performance Appraisal and Growth
Factors
Correlation Analysis is used to study the relationships between performance appraisal
factors and growth factors. Hypothesis states that performance appraisal, if perceived
effective, does not contribute in the growth factors of the ceramic tiles industry. To test
the objectivity of the hypothesis, correlation analysis is carried out to understand the
relationship between performance appraisal factors and growth factors among ceramic
tiles companies understudy.
H0 : r = 0 (Null Hypothesis)

H1 : r ≠ 0 (Alternate Hypothesis)

where r = Pearson Correlation

The correlation between the factors of effectiveness of Performance Appraisal, i.e.,

‘Performance Appraisal as HR Priority’, ‘Performance as an Employees’ Growth Tool’,
‘Performance Appraisal as Regular Interface’, ‘Performance Appraisal as Right
Promotion Tool for Inter and Intrapersonal Development’, ‘Performance Appraisal as
Psychological Development Tool’, ‘Performance Appraisal as Right Bridge between
Appraiser and Appraisee’ and ‘Performance Appraisal as Valid Measurement Tool’ as
perceived by the respondents of the ceramic tiles industry and the Growth Factors, i.e.,
‘Recognition as Individuals’, ‘Maintaining Health’, ‘Safety and Welfare Measures’, ‘Free
Communication’, ‘Satisfaction with the Job’, ‘Recommendation of Jobs’, ‘Fairness in
Salary’, ‘Suitableness of Job’, ‘Suitableness of Retention Methods’, ‘Company's HR
Policies’, ‘Job Security’, ‘Open Discussion’, ‘Conducting Training’, ‘Development and
Mentoring Programmes’, ‘Balance between Work and Personal Life’ and ‘Working
Conditions’ is found significant at 0.01 and 0.05 level of significance. Since, there is a
significant, positive correlation between factors of performance appraisal and growth
factors, the inference is drawn that performance appraisal practices enhance the level of
growth factors of the employees of ceramic tiles companies understudy. It means if,
performance appraisal Practices, perceived effective, increase the level of growth in the
ceramic tiles companies understudy. Therefore, the hypothesis H0: ‘Performance

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Appraisal, if perceived effective, does not contribute in the growth factors of the Ceramic
Tiles Industry’ is established as rejected.

Part V: Objectives of Performance Appraisal

The respondents have given the following objectives of performance appraisal system to
rank ‘one’ next to the objective that’s most important, ‘second’ next to the objective that's
second most important and so on. (1) Performance Appraisal System (PAS) clarifies
organizational expectations of employees, (2) PAS provides information to supervisors
for training purposes, (3) PAS provides information to supervisors for making pay
decisions, (4) Provides information to gain more insights about employees’ strengths and
weaknesses, (5) Performance appraisal helps supervisors for making promotion/demotion
decisions, (6) Provide documentation on performance for employee records, (7) PAS
helps HR department to take various decisions for growth of organisation, (8) PAS
provides information to employees about perceptions of their performance; and (9) PAS
provide information to employees about their development need. The respondents of
the ceramic tiles companies (<700 cr turnover) consider ‘expectations of employees’ as
top objective of the performance appraisal. While the other respondents of the other
companies having turnover 700-1400 cr and >1400 cr consider ‘documentation on
performance’, ‘information about development needs’ and ‘information to supervisors’
respectively. However, ‘expectations of employees’ are given as last choice by them.

Part VI: Correlation between the Factors of Talent Management and Performance
Appraisal
Correlation Analysis is used to study the relationships between factors of talent
management and performance appraisal. The hypothesis states that, if talent management
is perceived effective it does not contribute in the performance appraisal of the ceramic
tiles industry. To test the objectivity of the hypothesis, correlation analysis is carried out
to understand the relationship between talent management factors and performance
appraisal factors in the ceramic tiles companies understudy.
H0 : r = 0 (Null Hypothesis)

H1 : r ≠ 0 (Alternate Hypothesis)
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where r = Pearson Correlation

The correlation between the factors of talent management, i.e., ‘Appreciation of Talented
Employees’, ‘Supporting and Encouraging Employees’, ‘Comprehensive Talent
Management Strategy’, ‘Development of Competencies’, ‘Retaining the Talented
Employees’, ‘Contribution of Talent Management’, ‘Helpfulness of Talent Retention for
Organisation’, and ‘Helpfulness of Talent Retention’ and the factors of effectiveness of
Performance Appraisal, i.e., ‘Performance Appraisal as HR Priority’, ‘Performance as an
Employees’ Growth Tool’, ‘Performance Appraisal as Regular Interface’, ‘Performance
Appraisal as Right Promotion Tool for Inter and Intrapersonal Development’,
‘Performance Appraisal as Psychological Development Tool’, ‘Performance Appraisal as
Right Bridge between Appraiser and Appraisee’ and ‘Performance Appraisal as Valid
Measurement Tool’ as perceived by the respondents of the ceramic tiles industry is found
significant at 0.01 and 0.05 level of significance. Since, there is a significant, positive
correlation between factors of talent management and performance appraisal, the
inference is drawn that talent management practices enhance the effectiveness of
performance appraisal of ceramic tiles companies under study. It means that the talent
management practices contribute in the performance appraisal in the ceramic tiles
companies under study. Therefore, the hypothesis H0: ‘if Talent Management perceived
effective, does not contribute in the Performance Appraisal’ is established as rejected.

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Suggestions

Performance appraisal tool should be considered as the top HR priority. The

management should consider it as an employees’ growth tool.

The management of sampled ceramic tiles companies should use performance
appraisal as a regular interface.

Management should have to create free and fair environment where employees
could communicate with anybody in the organisation.

Performance appraisal should be treated as ‘Psychological Development Tool’ for
employees. It bridges the gap between the appraiser and appraisee.

Performance appraisal should be considered as a right promotional tool for inter
and intrapersonal development for employees by the management.

The correlation between the factors of effectiveness of performance appraisal and
the growth factors is found significant. Since, there is a significant, positive
correlation between factors of performance appraisal and growth factors, the
inference is drawn that effective performance appraisal practices enhance the
level of growth factors of the employees of ceramic tiles companies under study.
Hence, the performance appraisal practices should be effective.

To make performance appraisal more effective the management should take the
following steps like: recognize each employee as an individual in the
organisation; health, safety and welfare measures should be maintained; salary
should be fair in accordance with the roles and the responsibilities assigned to
employees; and retention methods should be suitable and meaningful for the
growth of the company.

The correlation between the factors of talent management and the factors of
effectiveness of performance appraisal is found significant. It directly indicates
that the talent management contributes in the effectiveness of performance
appraisal system. In this study, it is found that talent retention is helpful for long
term success of the organisation and it is helpful in performance appraisal system.
So, talent management should be used as an important HR tool by the
management of sampled ceramic tiles companies.

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The inference is drawn that talent management practices enhance the
effectiveness of performance appraisal of ceramic tiles companies under study.
Hence, the sampled ceramic tiles companies should have a comprehensive talent
management strategy to retain the talented employees. For this purpose, the
management should appreciate the performance of talented employees and
supports the employees to work in their organization for longer periods. The
organisation should try to develop the competencies of the employees and
encourage them for the same.

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