CHAPTER 1

INTRODUCTION

Perception as “the process of organizing and interpreting sensory information to give meaning.”
Perception functions as means of representing information from the outside world internally. Hence,
it is the personal creation of the particular individual who is involved in the process.

Perception is a process of sensory organs. The mind receives information through the five sense
organs, eyes, ears, nose, tongue and skin. The incoming stimuli to these organs can be through
action, written message, verbal communication, smell, taste, touch of the product and people.

Perception begins with awareness of these stimuli. Recognizing these stimuli occurs only after
paying attention to them. These messages are then translated into action and behaviour.

Definition

Stephen P. Robbins: – “Perception may be defined as a process by which individu-als organise

and interpret their sensory impressions in order to give meaning to their environment.”

Joseph Reitz: – “Perception includes all those processes by which an individual receives
information about his environment—seeing, hearing, feeling, tasting and smelling.”

Fred Luthans: – “Perception is an important meditative cognitive process through which persons
make interpretations of the stimuli or situation they are faced with”

Components Of Perception

• Stimuli (Excitement): – The receipt of information is the stimulus, which results in

sensation. Knowledge and behaviour depend on the senses and their stimuli. The physical
senses used by people are sight, hearing, touch, smell and taste. Intuition and hunch are
known as the sixth sense. These senses are affected by a large number of stimuli, which can
be actions, information, thoughts and feelings etc.

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• Attention: – People engage in stimuli selectively. Some stimuli are reacted to while others
are ignored without attention. The stimuli to which attention is given purely depend on the
selectivity of the people and the intensity of the stimuli. Educated employees pay more
attention to any stimulus, e.g., bonus announcements, appeals to increase productivity,
training
and motivation. Management has to find out suitable stimuli, which can appeal to the
employees at the maximum level.
• Recognition: – After noticing the stimuli, employees try to identify whether the stimuli are
worth feeling. Messages or incoming stimuli are recognized before they are transmitted in
practice. Perception is a two-stage activity, i.e., receiving stimuli and converting stimuli into
action. However, prior to the translation phase, the stimulus must be recognized by the
individual.
• Translation: – The stimuli are evaluated before they are converted into actions or
behaviours. The evaluation process is translation. In the above example, the car driver uses
the clutch and brake to stop the car after recognizing the stimuli. They have translated the
stimulus into appropriate action immediately. The perception process is purely mental before
it is converted into action. Conversion is translation. Management in an organization has to
consider various processes of converting message into action. Employees should be assisted
to convert stimuli into action.
• Behaviour: – Behaviour is the result of a cognitive process. It is a response to changes in
sensory inputsi.e., stimuli. This is an obvious and covert response. Perceptual behaviour is not
influenced by reality, but is the result of the individual’s perception process, his or her
learning and personality, environmental factors, and other internal and external factors at the
workplace.
• Performance: – Appropriate behaviour leads to high performance. High performers become
a source of excitement and inspiration to other employees. A performance-reward relationship
is established to motivate people.
• Satisfaction: – Higher performance gives more satisfaction. The level of satisfaction is
calculated from the difference between performance and expectation. If the performance
exceeds the expectation, people are pleased, but when the performance is equal to the
expectation, it results in satisfaction. On the other hand, if performance is less than expected,
people become frustrated and this requires a more attractive form of incentive to develop
appropriate employee work behaviour and higher performance.

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Errors of Perception

The main sources of errors in perception include the following: –

• Central Tendency: – Appraising everyone at the middle of the rating scale.

• Contrast Error: – Basing an appraisal on comparison with other employees rather than on
established performance criteria.

• Different from me: – Giving a poor appraisal because the person has qualities or
characteristics not possessed by the appraiser.

• Halo Effect: – Appraising an employee undeservedly on one quality (performance, for

example) because s/he is perceived highly by the appraiser on another quality (attractiveness).
• Horn Effect: – The opposite of the halo effect. Giving someone a poor appraisal on one
quality (attractiveness) influences poor rating on other qualities. (Performance)

• Initial Impression: – Basing an appraisal on first impressions rather than on how the person
has behaved throughout the period to which appraisal relates.

• Latest Behavior: – Basing an appraisal on the person’s recent behavior.

• Strict Rating: – Being consistently harsh in appraising performance.

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PERFORMANCE APPRAISAL

Performance appraisal is the process by which organizations collect information about how well
employees are doing their jobs. Evaluation of employee job performance is one component of the
performance management process. Organizations use performance appraisals to:

1. Provide feedback to employees in performance reviews

2. Help modify ineffective or inadequate work behavior (which may result in a performance
improvement plan)
3. Generate information that can be used to determine compensation, such as salary increases
and bonuses.

In other words, it is to plan and measure the performance of an individual in terms of the requirement
of the job or it is a process of finding out how effective the organization has been at hiring and
placing an employee.

Performance appraisal is a formal system of review and evaluation of individual or team task pe
rformance. While evaluation of team performance is critical when teams exist in an organization,
the focus of performance appraisal in most firms remains on the individual employees. Regardless of
the emphasis, an effective appraisal evaluates accomplishments and initiates plans for development,
goals and objectives.

PROCESS OF PERFORMANCE APPRAISAL:

1. Establishing Performance standards

2. Communicating the standards
3. Measuring the actual performance
4. Discussing Results
5. Decision Making

1.ESTABLISHING PERFORMANCE STANDARDS:

• The first step in the process of performance appraisal is the setting up of the standards which
will be used as the base to compare the actual performance of the employee.

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 • This step requires setting the criteria to judge the performance of the employees as successful
or unsuccessful and the degrees of their contribution to the organizational goal and objectives.
• The standards set should be clear, easy understandable and measurable.

2.COMMUNICATING THE STANDARDS:

• The standards once set it is the responsibility of the management to communicate the
standards to all the employees of the organization.
• This will help them to understand their roles and to know what exactly is expected from them.
• The standards should also be communicated to the appraisers or the evaluators and if
required, the standards can also be modified at this stage itself according to the relevant
feedback from the employees or the evaluators.

3.MEASURING THE ACTUAL PERFORMANCE:

• The most difficult part of the Performance appraisal process is measuring the actual
performance.
• It is a continuous process which involves monitoring the performance throughout the year.
• This stage requires the careful selection of the appropriate techniques of measurement, taking
care that personal bias does not affect the outcome of the process and providing assistance
rather than interfering in an employee’s work.

4.DISCUSSING RESULTS:

• The result of the appraisal is communicated and discussed with the employees on one-to-one
basis. The focus of this discussion is on communication and listening.
• The results, the problems and the possible solutions are discussed with the aim of problem
solving and reaching the goal
• The feedback should be given with a positive attitude as this can have an effect on the
employees’ future performance. The purpose of the meeting should be to solve the problems
faced and motivate the employees to perform better.

5.DECISION MAKING:

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 • The last step of the process is to take decisions which can be taken either to improve the
performance of the employees, take the required corrective actions, or the related HR
decisions like rewards, promotions, demotions, transfers etc.

METHODS OF PERFORMANCE APPRAISAL SYSTEMS:

With the evaluation of the appraisal system number of methods or techniques of performance
appraisal have been developed. They are as follows.

Traditional methods

1. Graphic rating scales

2. Check lists.
3. Ranking method
4. Forced distribution method.
5. Critical incident method.
6. Group appraisal
7. Performance test and observation.
8. Annual confidential reports.
9. Essay methods.

Modern methods

1. Behaviorally anchored rating scales

2. Assessment center
3. Human resource accounting
4. Management by objectives
5. Psychological appraisal
Traditional Methods:

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1. GRAPHIC RATING SCALES: Here the individuals is assessed on the quantity or quality of
his work as well as on other factors which vary with the job but include personal traits such as
co-operation, loyalty, reliability as well as specific items such as communication. Here a
graphic scale is used such as starting with outstanding and going on to above average,
average or satisfactory. It is very widely used rating method.

2. CHECK LISTS: The check list method is a simple rating technique in which the superior is

given a list of statements representing the characteristics and performance of each employee.

3.RANKING METHOD: Under this method the employees are ranked from best to worst on
some characteristics. the rater first find the employees with the highest and lowest performance in
that particular job category and rate the performer as the best and later as the poorest.

4. FORCED DISTRIBUTION METHOD: The rates may rate his employee at the higher or at
the lower end of the scale under earlier methods. This method is developed to present the rates
from rating too high or too low. The rates after assigning the points to the performance of each
employee have to distribution. This method eliminates central tendency and leniency bases.

5. CRITICAL INCIDENT METHOD: Often discussing ratings with employee particularly on

the basis of traits such as initiative, reliability, etc. have been found to demotivate them of
negative feedback. The critical incidents method shifts the emphasis from traits to behavior,
which can be more readily discussed. The supervisors keep a book where they record for each
employee from time to time, actual incidents of negative or positive behavior.

6. Group Appraisal: Under this method an appraiser is by a group of appraisers. This group
consists of the immediate supervisor of the employee to other supervisors who has close contacts
with the employee’s work, manager or head of the department and consultants.

7. PERFORMANCE TEST AND OBSERVATION: With a limited number of jobs, employee

assessment may be Based upon a test of knowledge or skills. The test must be reliable and
validated to be useful. Even then, performance tests are to measure potential more than Actual
performance.

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 8. ANNUAL CONFIDENTIAL REPORTS: Confidential records are maintained mostly in
government a department through its application in the industry is not ruled out. The system was
highly secretive ants’ confidential feedback to the assesses was given only in case of an adverse
entry. The annual confidential report (ACR) was highly subjective ratings were easily
manipulated because the evaluation was linked to promotion.

9. ESSAY METHODS: This is the easiest method where the rater is required to write a
paragraph on the subordinate’s strengths, weakness and so on. For example, in case of selection,
this sort of appraisal is often sought from the previous employer. However, as different to
compare essay rating. Thus, some form of formal method such as the Graphic Rating Scale has to
be used.

MODERN METHODS:

1. BEHAVIORALLY ANCHORED RATING SCALES (BARS): This method combines

elements of the traditional rating scales and critical incidents methods, using BARS, job behavior
from critical effective and ineffective behaviors are described more objectively. The method employs
individual who are familiar with a particular job to identify its major components they then rank as
validate specific behavior for each of the components.

2. MANAGEMENT BY OBJECTIVE: As against the work-standards approach where the

standards were fixed by management, in the Management by objective approach the employee are
required supervisors. MBO has become very popular during the last ten years and in some
organizations has even become a fad. However, it is found that at lower organization levels
employees very often are reluctant to set their own goals. When this problem is experienced, some
form of coercion is used and MBO degenerates into the work-standards approach. In such a case, it is
better to adopt the workstandards approach. In such a case, it is better to adopt the work-standards
approach.

3. PSYCHOLOGICAL APPRAISALS: Large organization employee full time industrial

psychologist. When psychologist is used for evaluations, they assess an individual’s future potential
and not past performance. They appraisal normally consist of in-depth interviews, psychologist then
writes an evaluation of the employee’s intellectual, emotional, motivational and other work-related
characteristics. Thus, suggests individual potential and may predict future performance.

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4. ASSESSMENT CENTERS: This method of appraising was first applied in German army in
1930; later business and industrial houses started using the method. It is system where assessment of
several individuals is done various experts by using various techniques. These techniques include
role playing case studies simulation exercise structure in sight transaction analysis.

5. HUMAN RESOURCE ACCOUNTING: HR accounting deals with the cost of contribution

of human resource to the organization. Cost of employees includes cost of man power planning
recruitment selection induction placement training development wages and benefits etc.

ADVANTAGES OF PERFORMANCE APPRAISAL

1. A systematic appraisal system helps the managers to properly identify the

performance of employees in a systematic manner and their areas of talent and areas
where they are lacking.
2. It helps the management to place the right employees for the perfect jobs depending
on their skills in particular areas.
3. It helps employees identify the areas in which they need to improve. The managers
can also use this information to provide constructive criticism of the way employees
perform their work.
4. Potential employees are often given promotions on the basis of or the results of
performance appraisals. People who have high ratings get promotions. They can also
transfer or demote employees if they not performing up to the expectations of the
managers.
5. An appraisal is also useful in determining the effectiveness and results of training
programmers. It can show managers how much employees have improved after taking
the training programmers. This will give managers data on how to change and evolve
the training programmers.
6. It creates healthy competition among employees as they will try to improve their
performance and score better than their colleagues.
7. Managers use appraisal programmers to identify the grievances of employees and act
upon them.

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 8. Keeping extensive records of performance appraisal will give managers a very good
idea of which employees have the highest growth rate and are which ones have a
declining rate of performance.

DISADVANTAGES OF PERFORMANCE APPRAISAL

1. If the factors being used in the performance appraisal are incorrect or not relevant, the
appraisal will fail to provide any useful or effective data.
2. Sometimes, equal weightage is not given to important factors when performing an appraisal.
3. Some objective factors are very vague and difficult to gauge like attitude and initiative. There
is no scientific method to measure these factors.
4. Managers are sometimes not qualified enough to correctly assess the employees and their
abilities. Thus, these mistakes can be very detrimental to the growth of the company.

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 CHAPTER 2

REVIEW OF LITREATURE

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•
Maund (2001) appraisal was a key component of performance management of employees.
When effective, the appraisal process reinforces the individual’s sensed of personal worth and
assists in developing his/her aspirations. Accurate appraisals were crucial for the evaluation
of recruitment, selection and training procedures. It could also increase employee motivation
through the feedback process and may provided an evaluation of working conditions and it
could improved employee productivity, by encouraging the strong areas and modifying the
weak ones 23. Further, employee evaluation could improved managerial effectiveness by
making supervisors more interested in and observant of individual employee.
• Stephan and dorfman (1989) outcomes of effective performance appraisal were
improvement in the accuracy of employee performance and establishing relationship between
performance on tasks and a cleared potential for reward.
• Thomas (1990) told five outcomes i. e. used of evaluations as feedback to improved
performance, reduced employee turnover, increased motivation, existence of feelings of
equity among employees, linkage between performance and rewards.
• Raitano and kleiner (2006) found outcomes liked reduced employee stressed, review of
overall progress, linkage between current performance and employee’s goals, and
development of specific action planned for future.
• Boswell& boudreau (1997) 49 argued that pa purpose affects rating processes and outcomes,
and they conceived that employee attitudes may vary depending on perceptions of how the pa
was used. Attitudes and perceptions towards various aspects of performance appraisal system
and proces
• Kuvaas (2010), the perceived effectiveness of performance appraisal was found to had a
positive relationship with worked performance and organizational commitment. Further,
employees’ perceptions about the politics of performance appraisal were negatively related to
job performance and positively related to turnover intention54. This was the major reasoned
employees resisted in implementing the performance management systems55. Thus, this
researched deals with the replacing relation between employees’ perception of performance
appraisal satisfaction and results of employees in the shape of worked performance, affective
organizational commitment and tendency to quite job position .
• Peter Awini Seidu(2012) This studied examined employees’ perceptions of performance
appraisal biases and errors in a polytechnic in takoradi, ghana. Data was collected from 140

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•
employees of the institution and analysed used descriptive statistics. The findings indicate
that the performance appraisal system was affected by subjectivity and was influenced by
major errors. The findings had implications for training, motivation and provision of
resources for effective performance appraisal.
• Yamima Dauda ( 2018) Performance appraisal was an evaluation process used to measured
employee worked output and progress. It had replaced traditional appraisal processes, but
had attracted resistance from scholars and practitioners. To addressed this, performance
management had been proposed to made the process more impersonal. This studied would
looked at the history, pros and cons and practices of performance appraisal practices in
different countries.
• David W. Sullivan and Junhyok Yim(2019) This article creates a theoretically grounded
model for understanding and measured performance management effectiveness, reviews 30
years of empirical pm researched, and elucidates the key “value chains” or mediational paths
that explained how and why pm could added valued to organizations. It concludes with
propositions for future researched and implications for practiced.
• . Taylor (2010) – while explaining turnover stated that pull and pushed factors were have
been considered. Positive attraction towards alternative job opportunity was pull factors, in
which employees were searching for alternative job opportunities even if they were happy
and satisfied. In this circumstance, it was highly essential that employer/management must
understand the real valued of their employees and identified the reasons for searching or what
they were expecting in the current job and this would help to retain the talents. The next
important factor was pushing factors, in which some dissatisfied circumstances were
prevailing in the current organization which made the employee to left for refining worked
life.
• Maqsood Haider et al. (2005) – undergone researched in telecom sector and conversed that
the competition to hunt and retain talents was tougher all the time. He discussed that
employees effective human resource practices showed a positive and direct relationship in
retaining employees. Further, it was analyzed that culture and compensation had a positive
impact; training & development had a negative impact over employee retention.
• Dr. Pratima Sarangi (2016) carried on a study to identifying the current leveled of
employee engagement and the work-related aspects which needed have been improved for
the purpose of employee engagement. Questionnaire was used as the tool for data collection

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•
descriptive statistics techniques used to analyze the data. At last, they concluded that the
current leveled of employee engagement and the work-related aspects needed have been
improved for the purpose of effective employee engagement.
Maha Ahmed zaki Dajani (2015) carried on a study to identified the key delivers of
employee of employee engagement within the Egyptian context. A surveyed questionnaire
was developed for collecting the data. Correlation matrix, regression analysis was used for
data analysis. He concluded that organization should actively looked forward to fulfill
employee’s expectation and thus created an important on the performance of employee which
directly affects the organizational performance.
• Dr. Bhagirathi Nayak (2016) carried on a study to identifying current leveled of employee
engagement and the worked related aspects which needed have been improved for the
purpose of employee engagement. Questionnaire was used as the tool for the data collection
descriptive statistics techniques used to analyze data. At last, they concluded that the current
leveled of employee engagement and the work-related aspects needed have been improved
for the purpose of effective employee engagement.
• Priyanka and Dubey S K (2016) – in their study performed exploratory factor analysis used
principal component technique. They had identified employee turnover intentions through
eight factors such as I. quality of management practices, ii. Low salary, iii. No career
growth opportunity, iv. Lack of support from the peered supervisors and family members,
little learned opportunities, poor working environment I. e no workplace safety, vii.
Communication and viii. Insecurity in job.

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•

16
 CHAPTER 3

RESEARCH METHODOLOGY

17
Research gap of the study

• Several studies have been conducted in the abroad. No studies specially found in India Mostly
of studies had used the descriptive method of research.
• Most of studies conducted on the hospitals, few are found in the companies (organization) in
order to offer high quality performance, the corporate world of today demands sustain.
• One potential research gap in the area of performance appraisal is the lack of understanding
around its effectiveness in truly impacting employee performance and development.
• While performance appraisals have long been used as a tool to measure employee
performance, there is little research that examines the effectiveness of using these evaluations
to promote growth and development among employees.
• There is also a lack of research exploring how different types of performance appraisals, such
as those with formal ratings versus those without, impact employee motivation and
performance.
• Moreover, research has yet to investigate how performance appraisals can be improved to
promote greater employee engagement and retention.
• Finally, there is a need for research exploring how to maximize the effectiveness of
performance appraisals in diverse and global workplace cultures.
• Researches are found in different areas of the world including India; however, a smaller
number of researches are found in North India.

Need of the study

• The immediate need of the day is to increase organization employee’s productivity and
efficiency.
• Long term sustainability requires consistent high-quality performance by its workforce.
• Performance measures link information gathering and on process which provides a basis for
judging effectiveness of personal sub division such as recruiting, selection, training,
compensation.

• To motivate the employees to give their involvement in “participation in management”

through effective suggestions through analyses get from the study.

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Objective of the study

To measure the effect of performance appraisal procedure as a whole on employees perception

towards performance appraisal.

Scope of the study

The present study is focused on A survey on the Perception of Employees Regarding Performance
Appraisal System of A HR Consultancy company . This study is extended to cognoticai consulting
Pvt. Ltd company, situated in Mohali (Punjab).

Research Design

Independent Variable Dependent Variable

Procedural Justice
Perception On
Goal Setting Performance Appraisal

Feedback

Pay for Performance

Research Types

There are different types of research design some of them are mentioned below:

• Exploratory
• Descriptive
• Experimental

I have used descriptive research design for my study. Descriptive research design used to describe
the characteristics of a population. In this study, data has been analysed on the basis of responses
collected through questionnaire.
Sampling method

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Convenient based non probability

Sample Size

The sample size of my study is 59

Tools for Data collection

Questionnaires method has been used to collect data with the help of google form.

Tools for data analysis

Pie charts has been used to analyse the data.

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 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

1.Gender of The Respondent Table A1: Gender

Gender No. of respondents Percentage (%)

Male 48 81.4%

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 Female 11 18.6%

Total 59 100%

Fig;1

Gender

18.60%

Male
Female

81.40%

Interpretation;

81.4% of the respondents were male and 18.6% of the respondents were female.

22
Q-
1 In your opinion performance appraisal is?
Rating No. of respondents Percentage (%)

Evaluation of employees 27 45.8%

Promotion of employees 8 13.6%

Job satisfaction of employees 10 16.9%

Motivation 14 23.7%

Total 59 100%

performance appraisal

23.70%
Evaluation of employees
45.80% Promotion of employees
Job satisfaction of employees
16.90% motivation

13.60%

Interpretation;

45.8% of the respondents choose evaluation of employees & 13.6% of the respondents choose
promotion of employees & 16.9% of the respondents choose job satisfaction of employees & 23.7%
of the respondents choose motivation.

2 Do you think performance appraisal helps people set and achieve the meaningful?

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Q-
Rating No. of respondents Percentage (%)

Yes 56 94.9%

No 3 5.1%

Total 59 100%

People set and achieve the meaningful goals

5.10%

yes
no

94.40%

Interpretation;

94.4% of the respondent’s choose yes & 5.1% of the respondents choose no.

3 Do you think that the performance of employees improves after the process of
performance appraisal?
Rating No. of respondents Percentage (%)

24
Q-
Yes 56 94.4%

No 3 5.1%

Total 59 100%

Performance of empolyees improves the

process of performance appraisal

5.10%

Yes
No

94.40%

Interpretation;

94.4% of the respondent’s choose yes & 5.1% of the respondents choose no.

4 Do you think performance appraisal give constructive criticism in a friendly and positive
manner?

Table
Rating No.of respondents Percentage (%)

25
Q-
Yes 48 81.4%

No 11 18.6%

Total 59 100%

Performance appraisal give constructive

criticism

18.60%

Yes
No

81.40%

Interpretation;

81.4% of the respondent’s choose yes & 18.6% of the respondents choose no.

5 Is the top – level management partial in performance appraisal?

Rating No. of respondents Percentage (%)

Yes 42 71.2%

No 17 28.8%

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Q-
Total 59 100%

Top - level management partial in

performance appraisal
Yes No

29%

71%

Interpretation;

71.2% of the respondent’s choose yes & 28.8% of the respondents choose no. 6 How often
performance appraisal is made in the organization?
Rating No. of respondents Percentage (%)

Monthly 8 13.6%

Quarterly 10 16.9%

Yearly 41 69.5%

Total 59 100%

27
Q-

Performance appraisal is made in the organization

13.60%

Monthly
16.90%
Quarterly
Yearly
69.50%

Interpretation;

13.6% of the respondents choose monthly & 16.9% of the respondents choose quarterly & 69.5% of
the respondents choose yearly.

7 Do you think performance appraisal helps to change the behavior of employees?

Rating No. of respondents Percentage (%)

Yes 45 76.3%

No 14 23.7%

Total 59 100%

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Q-

Performance appraisal helps to change the

behaviour of employees

23.70%

Yes
No

76.30%

Interpretation;

76.3% of the respondents choose yes & 23.7% of the respondents choose no.

8 what is the objective of performance appraisal?

Rating No. of respondents Percentage (%)

Promotion 19 32.2%

Assessing training & 22 37.3%

development needs

Pay rise 17 28.8%

It is to evaluate and assess an 1 1.7%

employee’s job performance.

Total 59 100%

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Q-

Objective of performance appraisal

1.70% Promotion

Assessing training&development
28.80% 32.20% needs

Pay rise

37.30%

Interpretation;

32.2% of the respondents choose promotion & 37.7% of the respondents choose assessing training &
development needs & 28.8% of the respondents choose pay raise & 1.7% of the respondents choose
it is to evaluate and assess an employee’s job performance. It also includes goal setting, promotion,
pay raises, training & development.

9 Who rates the performance?

Rating No. of respondents Percentage (%)

Superiors 25 42.4%

Subordinates 3 5.1%

Clients 1 1.7%

All 29 49.2%

Supervisor or manager 1 1.7%

Total 59 100%

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Q-

Who rates the performance

1.70%

Superiors
42.40% Subordinates
Clients
49.20%
All
Supervisor or manager

1.70% 5.10%

Interpretation;

42.4% of the respondent’s choose superiors & 5.1% of the respondent’s choose subordinates & 1.7%
of the respondent’s choose clients & 49.2% of the respondent’s choose all & 1.7% of the
respondent’s choose supervisor or manager.

10 On what basis performance appraisal is made?

Rating No. of respondents Percentage (%)

Total output 5 8.5%

Behavioural efficiency 6 10.2%

Both 48 81.4%

Total 59 100%

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Q-

Basis performance appraisal is made

8.50%

10.20%

Total output
Behavioural efficiency
Both

81.40%

Interpretation;

8.5% of the respondents choose total output & 10.2% of the respondents choose behavioral
efficiency & 81.4% of the respondents choose both.

11 Do you expect any salary increment after appraisal?

Rating No. of respondents Percentage (%)

Yes 52 88.1%

No 7 11.9%

Total 59

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Q-

Expect any salary incerment after appraisal

11.90%

Yes
No

88.10%

Interpretation;

88.1% of the respondents choose yes & 11.9% of the respondents choose no. 12 Do the promotion
strictly based on the performance appraisal process?
Rating No. of respondent’s Percentage (%)

Yes 47 79.7%

No 12 20.3%

Total 59 100%

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Q-

Promotion strictly based on the performance

appraisal process

20.30%

Yes
No

79.30%

Interpretation;

79.3% of the respondents choose yes & 20.3% of the respondents choose no.

13 Are you satisfied with the existing performance management process?

Rating No. of respondent’s Percentage (%)

Yes 40 67.8%

No 19 32.2%

Total 59 100%

34
Q-

You satisfied with the existing performance

management process

32.20%

Yes
No

67.80%

Interpretation;

67.8% of the respondents choose yes & 32.2% of the respondents choose no.

14 Goal setting is undertaken well with the help of the present appraisal method?
Rating No. of respondent’s Percentage (%)

Strongly agree 18 30.5%

Agree 32 54.2%

Strongly disagree 2 3.4%

Disagree 7 11.9%

Total 59 100%

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Q-

Goal seeting is undertaken well with the help of

the present appraisal method

3.40% 11.90%

30.50%
Strongly agree
Agree
Strongly disagree
Disagree

54.20%

Interpretation;

30.5% of the respondents choose strongly agree & 54.2% of the respondents choose agree & 3.4% of
the respondents choose strongly disagree & 11.9% of the respondents choose disagree.

15 You believes an effective appraisal system is critical for enchaning the performance level
of employees?
Rating No. of respondent’s Percentage (%)

Strongly agree 22 37.3%

Agree 32 54.2%

Strongly disagree 2 3.4%

Disagree 3 5.1%

Total 59 100%

36
Q-

An effective appraisal system is critical for

enching the performance level of employees
5.10%
3.40%

37.30% Strongly agree

Agree
Strongly disagree
Disagree
54.20%

Interpretation;

37.3% of the respondents choose strongly agree & 54.2% of the respondents choose agree & 3.4% of
the respondents choose strongly disagree & 5.1% of the respondents choose disagree.

37
 CHAPTER 5

FINDINGS

Findings of the study

38
I have conducted my study on “A Survey On The Perception Of Employees Regarding Performance
Appraisal System of A HR Consultancy Company’’ on 59 employees of one company and the
findings of the study are:

➢ Most of the respondents think that performance appraisal is evaluation of employees.

➢ Most of the respondents were agreed with that the performance appraisal helps people set
and achieve the meaningful goals.
➢ Most of the respondents were agreed with that the performance of employees improves after
the process of performance appraisal.
➢ Most of respondents were agreed with that the performance appraisal give constructive
criticism in a friendly and positive manner.
➢ Most of respondents were agreed with that the top- level management partial in performance
appraisal.
➢ Most of respondents were agreed with that the performance appraisal helps to change the
behavior of employees.
➢ Most of the respondents think that performance appraisal is made in the organization yearly.
➢ Most of the respondents think that the objective of performance appraisal assessing training
and development needs.
➢ According to the most of respondents who rates the performance all Superiors, Subordinates,
Clients, Supervisor or Manager.
➢ Most of the respondents think that performance appraisal is made on the basis on both total
output and behavioral efficiency.
➢ Most of respondents were agreed with that the Do you expect any salary increment after
appraisal.
➢ Most of respondents were agreed with that the promotion strictly based on the performance
appraisal process.
➢ Most of respondents were agreed with that the you satisfied with the existing performance
management process.
➢ Most of respondents were agree with that the goal setting is undertaken well with the help of
the present appraisal method.
➢ Most of respondents were agree with that an effective appraisal system is critical for
enchaining the performance level of employees.

39
 ➢

CHAPTER 6

CONCLUSION

Conclusions

Majority of the respondents are very positive about the contents of the forms used by the company
for documenting Performance appraisal. The forms and the guidelines are very well explained. The

40
respondents agree that Performance appraisal system has encouraged the employees to communicate
openly with their supervisor. Majority of the respondents agree with the contents of the instrument. .
They think that performance appraisal helps them to achieve goals, improve their performance,
change their behavior, and they accept salary increments after appraisal.

41
 CHAPTER 7

LIMITATIONS OF THE STUDY

Limitations of the study

▪ Restricted population as the survey was confined only to Cognoticai consulting Pvt. Ltd.
Mohali, Punjab office only.
▪ Due to lack of time to carry research, there might be some error in responses.
▪ Chance of getting biased information from the respondents.
▪ Due to company’s policies certain information was kept confidential. ▪ Study was limited
to specific area.
▪ Respondents were ignorant.

42
▪ This survey only focuses on the employee perception about performance appraisal and its
link with Procedural Justice, Goal Setting, Performance Feedback and Pay for
performance.

43
 BIBLIOGRAPHY
• Al-Jedaia, Y., & Mehrez, A. (2020). The effect of performance appraisal on job performance in
governmental sector: The mediating role of motivation. Management science letters, 10(9),
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performance appraisal on their work outcomes. International Journal of Management and
Commerce Innovations, 2(1), 136-173.
• Bretz Jr, R. D., Milkovich, G. T., & Read, W. (1992). The current state of performance appraisal
research and practice: Concerns, directions, and implications. Journal of management, 18(2),
321352. • Knezović, E., & Drkić, A. (2021). Innovative work behavior in SMEs: the role of
transformational leadership. Employee Relations: The International Journal, 43(2), 398-415.
• Khan, A. H. Employees Perception on Performance Appraisal System in a public limited
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cooperation with data sharing and platform empowerment: an examination with evolutionary
game model. International Journal of Production Research, 60(13), 4295-4315.
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framework for the future. Journal of management, 30(6), 881-905.
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(POS). Management Research Review, 46(5), 682-701.
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study TCAA (Doctoral dissertation, The Open University of Tanzania).
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i
 Appendix

Questionnaire

I am student of MBA4th semester. I am conducting this survey for my project reported of last
semester. The survey topic is A Survey On The Perception Of Employees Regarding
Performance Appraisal System Of A HR Consultancy Company

1• Name……………

2• Gender………….

3•Age…………….

4• Department……………...

Q- 1 In your opinion performance appraisal is?

• Evaluation of employees
• Promotion of employees
• Job satisfaction of employees
• Motivation

Q-2 Do you think performance appraisal helps people set and achieve the meaningful goals?

• Yes
• No

Q-3 Do you think that the performance of employees improves after the process of
performance appraisal?

• Yes
• No

A
Q-4 Do you think performance appraisal give constructive criticism in a friendly and positive
manner?

• Yes
• No

Q-5 Is the top- level management partial in performance appraisal?

• Yes
• No

Q- 6 Do you think performance appraisal helps to change the behaviour of employees?

• Yes
• No

Q-7How often performance appraisal is made in the organization?

• Monthly
• Quarterly
• Yearly

Q-8What is the objective of performance appraisal?

• Promotion
• Assessing training and development needs
• Pay rise

Q-9who rates the performance?

• Superiors
• Subordinates
• Clients
• All

Q-10 On what basis performance appraisal is made?

• Total output
• Behavioral efficiency

B
 • Both

Q-11 Do you expect any salary increment after appraisal?

• Yes
• No

Q-12Do the promotion strictly based on the performance appraisal process?

• Yes
• No

Q- 13 Are you satisfied with the existing performance management process?

• Yes
• No

Q-14 Goal setting is undertaken well with the help of the present appraisal method?

• Strongly agree
• Agree
• Strongly disagree
• Disagree

Q-15 You believe an effective appraisal system is critical for enchaning the performance
level of employees?

• Strongly agree
• Agree
• Strongly disagree
• Disagree