Challenges of sustaining a

Performance Appraisal
System
Submitted by:
Suraj Singh Chauhan
Uma Shankar Mohanta
Verinder Singh Deol
Abinash Kesab Samal
Rebecca Ghosh

Introduction
Headquartered in Mumbai, Larsen & Toubro Limited is one of the largest and
most respected companies in India's private sector
Over 75 years, L&T has a strong, customer focused approach and a continuous
quest for world-class quality
It has unmatched capabilities across Technology, Engineering, Construction and
Manufacturing, and maintains a leadership in all its major lines of business
L&T is also considered as one of the pioneers of the HRD system in Indian
industry
Diversified business with the distinction of being the largest employers of
skilled and qualified manpower having a strength of 25000
Unique work culture, known as the L&T culture

Appraisal System
It underwent three major phases of modification which involved changes in the
rating scales, critical attributes, additions and deletions changes in the
presentation style
Initially the emphasis was on transparency between superior and subordinates
and development of the individual
Central personnel department was decentralized to different operating groups.
Thus PA system got integrated with the reward system

Problems and Issues with existing Appraisal

System
Didnt served the purpose it was intended for
System was used for fault finding instead of developing the employees
The employees were awarded unrealistic ratings due to linkage of the
performance appraisal and reward system
Since there were not so much changes in the objectives, the appraisal was
done in a mechanical way
In the appraisal interview, time is spent on the rating that an employee gets
rather than spending time on the development aspects
The appraisal system failed to provide a real time training recommendations
A satisfaction level was collected among the employees which showed the
mean satisfaction score to be 45%

Interpretation and Recommendations

For a more accurate rating system separate appraisal system and
reward system should be followed
Focus should be more on development of individual performance
so that the employee feel more engaged.
In group appraisal system , peer evaluation and peer rating should
be implemented so to avoid social loafing and ensure heathy
competition.

THANK YOU !!!!!