Performance Appraisal
Performance Appraisal
Performance Appraisal
ON
PERFORMANCE APPRAISAL OF EMPLOYEES AT
ThinkNEXT Technologies PVT. Ltd
Submitted To:
Jasmeet Virk
HR Executive
DECLARATION
I hereby declare that the Training Report was submitted by me under the supervision and
guidance of Mrs. Rajni Wadhwa Bedi, project guide, ThinkNEXT Technologies in Partial
Fulfillment of M.B.A 3nd semester. I further declare that I am solely responsible for omission
and commission of errors if any.
(JASMEET VIRK)
ACKNOWLEDGEMENT
Amongst the wide panorama of people who provided me the inspiration, guidance and
encouragement, I take this opportunity to thank those who gave me indebted assistance and
constant encouragement for completing this project.
I would like to thank Mrs. Rajni Wadawa Bedi, HR Trainer of ThinkNEXT Technologies Pvt.
Ltd., Mohali for his continuous help in completion of this project. She motivated me and was
available whenever her assistance was sought. She was actively involved throughout the project
and was also kind enough to tell me the strengths and weaknesses and how I could improve
myself to face the corporate world. Without her support the completion of this project would be
impossible.
I would like to extend my thanks to all the employees/staff of the ThinkNEXT Technologies
Pvt. Ltd., Mohali for their support.
I would also like to thank my college project guide Dr. Shelly, Global Institute of Mgt.,
Amritsar, for his valuable guidance and support.
Place: Mohali
(JASMEET VIRK)
TABLE OF CONTENT
SR NO.
1.
TOPIC NO.
INTRODUCTION
PAGE NO.
5-37
2.
38-40
3.
RESEARCH METHODOLOGY
41-43
4.
LITERATURE REVIEW
44-46
5.
LIMITATIONS OF STUDY
47-48
6.
49-61
7.
62-67
8.
CONCLUSION
68-69
9.
QUESTIONNAIRE
70-73
10.
BIBLIOGRAPHY
74
CHAPTER -1.1
COMPANY PROFILE
SERVICES
We provide Software Solutions using latest technologies or features
NFC
Biometrics (Fingerprint with Automated Online)
Smart Card
Barcode
RFID
SMS
Short code 56767 (Auto SMS)
Android
7
ions (phone)
GPS
WAP (For WAP Enabled Mobile Phones)
Multiple SMS Gateway Support
Web based Technologies (365x24x7 services)
Windows based Technologies
Mobile based Technologies
Webcam support for various operations
Parallel Internet, Intranet and Wi-Fi Support
VISION
ThinkNEXT Technologies Pvt. Ltd. are already very flexible and scalable. Still, we
always take care of specific requirements of our clients. Our highly committed R&D
team makes our software feature rich, dynamic and future tuned everyday so that our
clients always maintain the lead over their competitors. The development of the software
is being done and the purpose full customization of the package is carried out in the
ThinkNEXT lab.
MISSION
ThinkNEXT
is
pioneer
in
Smart
Campus
ERP
Solutions
for
QUALITY POLICY
We have wide experience working with eminent Educationists, Managements, Directors,
Principals, Head of Departments, other Staff Members, Parents and students. Therefore
we do not sell only software Modules but an innovative system which has more
importance than just ERP software modules. Today Smart Campus solutions are a need
of hour for every University/Group of Colleges or an Institution to make edge over
others and maintain a lead over their competitors. Our Research and Development team
is committed to make your institute(s) to maintain lead over their competitors.
MORE SERVICES
ThinkNEXT offers various industry-ready programs so that student needs not to struggle
for jobs. ThinkNEXT offers 6 weeks/2 Months/6 Months training programs to make
students industry.
ThinkNEXT is pioneer in providing best placements in Industry. We offer minimum five
job interviews for each student and provide 100% Placement Assistance.
ThinkNEXT Offers Life-Time Validity Learning and Placement Card. Students
undergoing six months training will have advantage to learn free of cost anything against
that training program for life-time.
ThinkNEXT offers Part-Time/Full Time Job Offer for each student during training so
that students can earn while they learn. Student can bear their food, accommodation and
other expenses on.
BOARD OF DIRECTOR
Sunil Jindal
Munish Mittal
Ghansham Das
Vikas Gupta
MANAGING DIRECTOR
Sunil Jindal
MARKETING HEAD
Munish Mittal
IT HEAD
Mukesh Kumar
10
11
12
PLACEMENTS
Company List
13
INDUSTRIAL TRAINING
6 Months/Weeks Industrial Training Programs
Microsoft .NET
Android
iPhone
Java
PHP/MySQL
Web Designing
Embedded Systems
AutoCAD
CCNA
14
MCITP
SEO
CATIA
Pro-E
Solid Works
Human Resource
Marketing
Finance
One-to-one Project and Project will be made Live and to make it Live, ThinkNEXT
will provide sub-domain and hosting worth Rs. 3000 absolutely free to each student
for web based Project. To host mobile apps, ThinkNEXT will provide free Google
Play account (For Android Mobile Apps) and Apple iTunes Connect Account
(Apple App Store) for iPhone Apps.
ThinkNEXT EDGE
Industrial Training and Certificates from Software/Electronics Company not just from
an institute
Think NEXT Cloud Campus advantage not only during training, even after completion
of training for life time.
Every
Student
is
provided
with
Live
Projects
mentored
by
Software/
Electronics/Industry Experts.
Each Student will have Unique User ID and Password to Login to ThinkNEXT Cloud
Campus 4.0 anytimeanywhere
Students will be able to download e-Books, e-Journals, Class Notes, Important Links
and other study material.
ThinkNEXT Smart Campus is a step towards not only 100% placements but also better
job offers even after placements.
Student Profile, Instant Technical Updates, Class Notes, Project Report Submitted,
Attendance, Performance, Notice-Board, Class Timings etc. Everything online.
16
CHAPTER-1.2
INTRODUCTION
17
performance evaluation,
continuum lies the goals set by the authority, and at the other end, the performance
achieved by the individual or any given group.
According to DeNisi, Performance appraisal is the system whereby an organization assigns
some score to indicate the level of performance of a target person or group.
Performance appraisal can be either formal or informal.
Usage
of former
systems
19
USES OF PERFORMANCE
APPRAISAL
Performance appraisal is crucial tool in the hands of the management to bring about greater
agility and responsiveness in human resources of an organization. Performance appraisal is the
foundation of much human resource decision. Therefore, it has multifarious uses as depicted
below:
PERFORMANCE IMPROVEMENT: Performance feedback allows the employee,
manager and personnel specialists to intervene with appropriate actions to improve
performance.
20
TRAINING AND DEVELOPMENT NEEDS: Poor performance may indicate the need for
retraining. Likewise, good performance may indicate untapped potential that should be
developed.
through appraisals, the human resource department may be able to provide assistance.
FEEDBACK TO HUMAN RESOURCES: Good/bad performance throughout the
organization indicates how well the human resource function is performing.
1.
2.
3.
4.
What is the size of your job in such terms of output or sales targets, number of items
processed, number of people managed, number of customers? What targets or standards of
performance have been assigned for your job? Are there any other ways in which it would
be possible to measure the effectiveness with which you carry out your job?
Is there any other information you can provide about your job?
24
The components that should be used in a performance appraisal system flow directly from
the specific objectives of appraisal. The following components are being used in a number
of Indian organizations.
1. Key Performance Areas (KPAs) I Key Result Areas
(KRAs)
2.Tasks/targets/objectives/attributes/qualities/traits
3. Self appraisal
4. Performance analysis
5. Performance ratings
6. Performance review, discussion or counseling
7. Identification of training and development needs
8. Ratings and assessment by appraiser
25
In the close ended appraisal system, commonly used in government organizations and
public enterprises, a confidential report is submitted on the performance of the employee.
Only where an adverse assessment is made against an individual, the concerned individual
is informed about the same. The main shortcoming of this system is that an individual is not
informed about his/her inherent strengths and weaknesses and, therefore, is not given an
opportunity to respond to the assessment made on him/her. The employees are, therefore, in
a constant dilemma as to how their performance is viewed by the management. In the open
ended appraisal system, unlike in the close ended system, the performance of the individual
is discussed with him, and he is ranked in a five or ten point rating scale. The company
uses this tool primarily for rewarding a good performer or for other considerations like
promotions. The main weakness of this system is that all the employees are ranked in a
particular scale, and whereas the good performers are rewarded, there is no concerted
effort to motivate the average performers in performing better. Another weakness of the
26
grading system is that the appraisal may tm out to be more subjective in nature due to
insufficient data maintained on the individual.
Traditional/Past-Oriented
Methods
Modern/Future-Oriented
Methods
28
Rating Scales: Rating scales consists of several numerical scales representing job related
performance criterions such as dependability, initiative, output, attendance, attitude etc. Each
scales ranges from excellent to poor. The total numerical scores are computed and final
conclusions are derived. Advantages Adaptability, easy to use, low cost, every type of job can
be evaluated, large number of employees covered, no formal training required. Disadvantages
Raters biases
2.
Checklist: Under this method, checklist of statements of traits of employee in the form of
Advantages Evaluations are based on actual job behaviors, ratings are supported by
descriptions, feedback is easy, reduces regency biases, chances of subordinate improvement are
high.
Disadvantages Negative incidents can be prioritized, forgetting incidents, overly close
supervision; feedback may be too much and may appear to be punishment.
5. Behaviorally Anchored Rating Scales: statements of effective and ineffective behaviors
determine the points. They are said to be behaviorally anchored. The rater is supposed to
say, which behavior describes the employee performnce.
Advantages Helps overcome rating errors.
Disadvantages Suffers from distortions inherent in most rating techniques.
6. Field Review Method: This is an appraisal done by someone outside employees own
department usually from corporate or HR department.
Advantages Useful for managerial level promotions, when comparable information is
needed.
Disadvantages Outsider is generally not familiar with employees work environment,
Observation of actual behaviors not possible.
7. Performance Tests & Observations: This is based on the test of knowledge or skills. The
tests may be written or an actual presentation of skills. Tests must be reliable and validated
to be useful.
Advantages Tests may be apt to measure potential more than actual performance.
Disadvantages Tests may suffer if costs of test development or administration are high.
8. Confidential Records: Mostly used by government departments, however its application
in industry is not ruled out. Here the report is given in the form of Annual Confidentiality
Report (ACR) and may record ratings with respect to following items; attendance, self
30
Ranking Methods: Superior ranks his worker based on merit, from best to worst.
However how best and why best are not elaborated in this method. It is easy to
administer and explanation.
31
Paired Comparison Methods: In this method each employee is rated with another
employee in the form of pairs. The number of comparisons may be calculated with the
help of a formula as under.
N x (N-1) / 2
rated against the achievement of objectives stated by the management. MBO process goes as
under.
Establish new goals and new strategies for goals not achieved in previous year.
Advantages It is more useful for managerial positions. Disadvantages Not applicable to all
jobs, allocation of merit pay may result in setting short-term goals rather than important and
long-term goals etc.
2.
potential for future performance rather than the past one. It is done in the form of in-depth
interviews, psychological tests, and discussion with supervisors and review of other evaluations.
It is more focused on employees emotional, intellectual, and motivational and other personal
characteristics affecting his performance. This approach is slow and costly and may be useful for
32
bright young members who may have considerable potential. However quality of these
appraisals largely depend upon the skills of psychologists who perform the evaluation.
3.
Assessment Centers: This technique was first developed in USA and UK in 1943. An
assessment center is a central location where managers may come together to have their
participation in job related exercises evaluated by trained observers. It is more focused on
observation of behaviors across a series of select exercises or work samples. Assesses are
requested to participate in in-basket exercises, work groups, computer simulations, role playing
and other similar activities which require same attributes for successful performance in actual
job. The characteristics assessed in assessment center can be assertiveness, persuasive ability,
communicating ability, planning and organizational ability, self confidence, resistance to stress,
energy level, decision making, sensitivity to feelings, administrative ability, creativity and
mental alertness etc.
Advantages well-conducted assessment center can achieve better forecasts of future
performance and progress than other methods of appraisals. Also reliability, content validity and
predictive ability are said to be high in assessment centers. The tests also make sure that the
wrong people are not hired or promoted. Finally it clearly defines the criteria for selection and
promotion.
Disadvantages Costs of employees traveling and lodging, psychologists, ratings strongly
influenced by assessees inter-personal skills. Solid performers may feel suffocated in simulated
situations. Those who are not selected for this also may get affected.
4. 360-Degree Feedback: It is a technique which is systematic collection of performance data
on an individual group, derived from a number of stakeholders like immediate supervisors, team
members, customers, peers and self. In fact anyone who has useful information on how an
employee does a job may be one of the appraisers. This technique is highly useful in terms of
broader perspective, greater self-development and multi-source feedback is useful. 360-degree
appraisals are useful to measure inter-personal skills, customer satisfaction and team building
33
skills. However on the negative side, receiving feedback from multiple sources can be
intimidating, threatening etc. Multiple raters may be less adept at providing balanced and
objective feedback.
34
Traditionally appraisals are carried out by the supervisors of the employees. Some
companies do follow self appraisal and compare the same with the traditional appraisal of
the supervisors. A new approach has been recently enunciated by the western management
gurus, which is known as 360 degree appraisal whereby appraisals are required to be
carried out not only by the supervisors, but also by those supervised (subordinates) and
peers. This approach also needs are look in the context of leadership concepts being
practiced universally. If one requires to be appraised on how well he performs the
leadership role, the appraisal should originate from the followers (bottom to top approach)
and not from their supervisors alone.
35
While the supervisors can appraise, on the performance standards, goals, targets,
achievements, the leadership attributes need to be appraised only by those being
supervised. This argument is quite valid for higher level executives including CEOs.
Therefore, all the three approaches, top bottom, bottom-top and peer level appraisal will
be very relevant.
Perhaps,
appraisals being carried out in the 360 degree system, which is yet to take off seriously in
many organizations.
It is quite disappointing to note that appraisals are not being carried out with the due
importance and seriousness
they deserve
periodic and timely appraisals. Normally appraisals are being carried out once a year or
at the most twice a year as per the existing practice. Many organizations do follow
monthly and quarterly appraisals for management trainees till they are confirmed, and
follow the by-annual or annual appraisal system thereafter. Appraisal is a continuous
process, to be scientifically carried out day in day out, if one has to seriously carry out
appraisals.
8. Designing, monitoring and auditing processes to ensure proper operation of the system and
to identify areas of weakness.
9. Granting employees opportunities for appeal whenever and wherever such action is
appropriate.
10. Training of employees in all phases of the appraisal system. The basic issues addressed by
performance appraisal are:
What to appraise?
How to appraise fairly and objectively?
How to communicate the appraisal and turn the total process into a motivator? How the
performance appraisal results can be put to good use?
How to implement the performance appraisal system smoothly?
37
CHAPTER-2
SCOPE & OBJECTIVES
38
Fairness in performance appraisal system is very important for the organization. If the system of
the organization is not fair that means employee is not satisfy with their appraisal system which
leads to the result of leaving the job by the employee. That means increase in employee attrition.
The main reason of doing this study is increase in employee attrition.
39
41
CHAPTER-3
RESAERCH
METHODOLOGY
RESEARCH METHODOLOGY
Meaning of Research:
For achieving the objectives of study, survey was conducted. For survey; personal interviews of
the management were undertaken. A personal interview was selected as the mode of survey to
make the study more meaningful and so that maximum information could be collected. For
42
conducting the personal interviews of the management, a questionnaire was made. The
questionnaire was structured with open ended and close ended questions.
The Management was interviewed on various aspects likely to have impact on the absenteeism
and on the turnover of the employed viz. number of the leaves allowed to the employees,
procedure for the promotions, increments in pay, bonus schemes incentive sector etc. given to
the employees.
SAMPLING UNIT:
The area, which is taken for study, is ThinkNEXT Technologies pvt Ltd Mohali.
SAMPLE SIZE:
DESIGNATION
SAMPLE SIZE
EMPLOYEES
35
TOTAL
35
SAMPLING PROCEDURE:
Convenience sampling has been used to collect the data from the respondents. Convenience
sampling technique is followed. Convenience sampling as the name implies is based on the
convenience of the researcher who is to select the sample. This type of sampling is also
called accidental sampling as the respondents in the sampling are included in it merely on
account of that being available on the spot where the survey is in process.
43
Thus the researcher may stand at a certain prominent point and interview all those or
selected people who pass through that place.
44
CHAPTER-4
LITERATURE REVIEW
45
LITERATURE REVIEW
46
7. Leon C. Megginson has defined: Performance appraisal is the process an employer uses to
determine whether an employee is performing the job as intended. ( Merit rating, efficiency
rating, service rating and employee appraisal arc others frequently used terms for
performance appraisal)
8. Wayne F. Cascio: Performance appraisal as the systematic description of an employees
job-relevant strengths and weaknesses
47
CHAPTER-5
LIMITATIONS OF STUDY
48
1. Time is important limitation due to the time constraints only few employees is
taken for the study.
2. The study is limited to the employees deployed in ThinkNEXT Technologies Pvt Ltd.
3. The study often overlooked by management so redtops involvement could manipulate
desired result.
49
CHAPTER-6
DATA ANALYSIS
AND
INTERPRETATIONS
50
b) 1-2 years
c) 2-3 years
TABLE:
Options
No. of Respondents
Percentages
7
10
12
6
20%
28.57%
34.28%
17.15%
TOTAL
35
100%
CHART:
No. of Respondents
Less than one years
1-2 years
2-3 years
More than 3 years
INTERPRETATION- As per the analysis, 20% of the respondents have been working in
organization for less than one year; 28.57% respondents have been working from1-2 years,
34.28% respondents have been working for 2-3 years and the remaining 17.15% respondents
have been working for more than 3 years.
51
2. Does the system provide you a chance to communicate the support you need from your
subordinate to perform the job well?
a) Yes
b) No
TABLE:
Options
Yes
No
TOTAL
No. of Respondents
20
15
35
Percentages
57.15%
42.85%
100%
CHART:
No. of Respondents
Yes
No
INTERPRETATION- As per the analysis 57.15% respondents believe that the system provide
a chance to communicate the support they need from your subordinate to perform the job well
and 42.85% respondents believe that system does not provide any system to communicate.
3. Which appraisal system is being employed in the company?
a) Assessment Centre
b) MBO
52
c) BARS
e) Balance scorecard
TABLE:
Options
Assessment
MBO
BARS
360 Degree feedback
Balance
TOTAL
CHART:
No. of Respondents
7
3
10
9
6
35
Percentages %
20%
8.57%
28.57%
25.71%
17.15%
100%
No. of Respondents
Assessment
MBO
BARS
Balance
INTERPRETATION- As per the analysis 20% respondents believe that assessment appraisal
system is being employed in the organization, 8.57% respondents believe that MBO appraisal
system is being employed in the org, 28.57% respondents believe that BARS appraisal system is
being employed in the org, 25.71% respondents believe that 360 degree feedback system is
being employed the company and 17.15% respondents are balanced.
4. What is the timing of Appraisals followed by ThinkNEXT Technologies limited?
a) Monthly
b) Quarterly
d) Annual
e) Any time
c) Half yearly
TABLE:
Options
No. of Respondents
53
Percentages%
Monthly
20%
Quarterly
11.43%
Half yearly
10
28.57%
Annual
12
34.28%
Any time
5.72%
TOTAL
35
100%
CHART:
No. of Respondents
Monthly
Quarterly
Half yearly
Annual
Any time
INTERPRETATION- The table shows that 20% respondents say that appraisal is conducted
Monthly by the organization,11.43% respondents say that the organization conducts the
appraisal Quarterly, 28.57% respondents say that performance appraisal is conducted SemiAnnually 34.28% respondents say that appraisal is conducted Annually by the organization, and
5.72% respondents say that appraisal is conducted anytime by the company.
5. What do you think is the effect of a poor appraisal system?
a) De-motivation
b) Retention
c) Ineffective teamwork
TABLE:
Options
De-Motivation
Retention
No. of Respondents
20
5
54
Percentages%
57.14%
14.28%
Ineffective Teamwork
TOTAL
10
35
28.58%
100%
CHART:
No. of Respondents
De-motivation
Retention
Ineffective
teamwork
INTERPRETATION- It can be seen from result that 57.14% of the employees get demotivated because of poorly conducted appraisal; 14.28% of employees get retained and
28.58% of respondents results in ineffective teamwork due to poor appraisal.
6. Are employees comments and suggestions taken in to consideration before the
appraisal?
a) Yes
b) No
TABLE:
Options
Yes
No
TOTAL
No. of Respondents
30
5
35
55
Percentages%
85.72%
14.28%
100%
CHART:
No. of Respondents
Yes
No
INTERPRETATION- From above it can be seen that the 85.72% employees believe that their
comment and suggestions are taken into consideration before the appraisal and 14.28%
employees believe that their comment and suggestions are not taken into consideration before
the appraisal.
b) Peer Appraisal
c) Rating Committees
Self Rating
e) Appraisal by Subordinates
TABLE:
Options
Immediate Supervisor
Peer Appraisal
Rating Committees
Self Rating
Appraisal by Subordinates
TOTAL
No. of Respondents
25
4
2
3
1
35
56
Percentages %
71.43%
11.43%
5.71%
8.57%
2.86%
100%
d)
CHART:
No. of Respondents
Immediate supervisor
Peer appraisal
Rating committees
Self rating
Appraisal by
subordinates
INTERPRETATION- From this it is evident that 71.43% employees say that appraisal is
conducted by the intermediate supervisor; 11.43% employees says that appraisal is conducted
by peers; 5.71% employees say that appraisal is conducted by rating committees; 8.57%
employees say that appraisal is conducted by self rating; 2.86% employees say that appraisal is
conducted by subordinates.
57
b) No
TABLE:
Options
Yes
No
TOTAL
No. of Respondents
32
3
35
Percentages%
91.43%
8.57%
100%
CHART:
No. of Respondents
Yes
No
INTERPRETATION- From this it is clearly seen that 91.43% employees believe that the
performance appraisal is successful in giving a clear understanding of the appraisers job to both
appraiser and appraisee and remaining 8.57% employees believe that the performance appraisal
is not successful in giving a clear understanding of the appraisers job to the appraiser and
appraisee
58
9. Are the standards on the basis of which the Performance Appraisal is carried out
communicated to the employees before hand?
a) Yes
b) No
TABLE:
Options
Yes
No
TOTAL
No. of Respondents
31
4
35
Percentages%
88.57%
11.43%
100%
CHART:
No. of Respondents
Yes
No
INTERPRETATION- From above it is evident that 88.57% employees believe that the
standards on the basis of which the performance appraisal is carried out are communicated to
the employees beforehand and remaining 11.43% employees believe that the standards on the
basis of which the performance appraisal is carried out are not communicated to the employees
before hand.
59
10. Do you think that the organization gives an opportunity to the appraisee to rate his
own performance?
a) Yes
b) No
TABLE:
Options
Yes
No
TOTAL
No. of Respondents
14
21
35
Percentages%
40%
60%
100%
CHART:
No. of Respondents
Yes
No
INTERPRETATION- From result it can be seen that the 40% employees think that the
organization gives an opportunity to the appraisee to rate his own performance while remaining
60% employees think that the organization does not gives an opportunity to the appraise to rate
his own performance.
a) Yes
b) No
TABLE:
Options
Yes
No
TOTAL
No. of Respondents
32
3
35
Percentages
91.43%
8.57%
100%
CHART:
No. of Respondents
Yes
No
INTERPRETATION- From above we conclude that 91.43% employees act upon the result of
their performance appraisal and remaining 8.57% employees do not act upon the result of their
performance appraisal.
12. Are you fully satisfied by ThinkNEXT Technologies Performance Appraisal system?
a) Strongly agree
b) Agree
c) Neutral
61
d) Strongly disagree
e) Disagree
TABLE:
Options
No. of Respondents
Percentages %
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
7
11
9
5
3
20%
31.43%
25.71%
14.28%
8.57%
TOTAL
35
100%
CHART:
No. of Respondents
Strongly agree
Agree
Neutral
Strongly disagree
Disagree
INTERPRETATION- From above we can conclude that 31.43% employees are satisfied by
this company performance appraisal system and 20% employees are highly satisfied; 25.71%
employees are neutral; 14.28% employees are dissatisfied and remaining 8.57% are highly
dissatisfied with the Companys performance appraisal system.
62
CHAPTER-7
FINDINGS
&
SUGGESTIONS
63
FINDINGS
1. It has separate appraisal system for each level of employees. These appraisal
systems differ on the factors on which a person is rated and the nature of duties
handled by him.
2. It is seen that the employees are not satisfied with the way they are
appraised or they haven't been appraised properly. For this matter, the company
have interview and discussion.
3. The frequency of appraisal in this organization is yearly. Where appraisal is based
on Key Result Areas, a mid-term review is also undertaken. This data is then
compiled and the final appraisal is conducted at the end of the year.
4. In most of the cases the immediate supervisors is the appraiser but sometimes it is
also the HR department or the HOD.
5. This organization have goal setting as part of appraisal. The performance is
evaluated against these targets.
6. On an average 85% of the employees of an organization are motivated by Performance
Appraisal.
7.
Organizations use the data that is maintained for every employee to compare the
performance over a period of time. Some companies also use this data for making
decision regarding job rotation, succession planning. Very few companies make
use of this data for retrenchment as proof of poor performance.
8. A good deal of respondents felt that appraisal is likely to be more successful when
it is linked with financial and semi-financial
increment. This increases the commitment from the parties concerned the appraisal
and the appraisee.
64
9. 360 degree feedback system is not very popular in the Indian companies. Among
the companies under study, this system has been implemented in this system can be
adopted and is successful only in the presence of an o p e n organizational climate.
10. Most of the companies have a separate appraisal system for the new employees,
who are on probation. This basically to confirm them is satisfied with the current
11. In most of the organizations training is provided for the appraisal system one to
two weeks before the appraisal and also when new or revised Performance
Appraisal system is introduced.
12. Performance Appraisal is surly a good indicator (about 80%) for the training and
developmental need of the employees.
65
SUGGESTIONS
Performance Appraisal should not be perceived just as a regular activity but
its importance should be recognized and communicated down the line to all
the employees.
a. There should be a review of job analysis, job design and work environment based
on the performance appraisal.
b. It should bring more clarity to the goal and vision of the organization.
c. It should provide more empowerment to the employees.
d. New methods of appraisal should be adopted so that both appraiser and the
appraise take interest in the appraisal process.
e. The employees who have excellent performance should be used as a mentor for
other employees who would motivate others to perform better.
f. Employees should be given feedback regarding their appraisal. This will help
them to improve on their weak areas.
g. Financial and non-financial incentives should be linked to the annual appraisal
system so that employees would be motivated to perform better.
h. New mechanisms should be evolved to reduce the time factor involved m
the procedure of appraisal. Introducing online-appraisal can do this.
i. The frequency of training program for the appraiser should be increased and these
sessions should be made interactive.
j. The
awareness
sessions
for
the
employees/appraisee
should
be
made
more interactive and the views and opinion of the appraisee regarding appraisal
should be given due consideration.
k. Assistance should be sought from specialists for framing a proper appraisal
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system that suits the organization climate. Constant monitoring of the appraisal
system should be done through discussions, suggestions, interactions.
l. Combining the different methods of appraisal can minirnize the element of
biasness in an appraisal. Like the Rating method combined with assessment center
method would give an evidence of poor/unfavorable or outstanding behavior of
the appraisee, if any.
m. Use of modem appraisal techniques like 360 appraisal, assessment centers which
are more effective.
n. More transparency should be brought about in the appraisal system.
o. The appraisal system should cover all employees in the organization both white
collar and blue-collar jobs.
p. Recognizing the good performers i.e., appraises who have accomplished the
targets for the year can help in getting more commitment from the employees.
q. Information regarding the performance of the employees should be kept in proper
manner.
r. Some of the performance appraisals should be conducted by the top management so
that they can understand the employees and their needs, behavior better and to find
out the loopholes.
s. Performance appraisal should be effectively link to the performance management
system of the organization.
t. Performance appraisal should be effectively link to the performance management
system of the organization.
u. Still follow the traditional methods of appraisal that should be transformed into the
modem one.
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CHAPTER-8
CONCLUSION
69
CONCLUSION
The findings in this research have showed that it is essential to have an effective Performance
Appraisal system. The system should be free from bias so that employees are afforded the
chance to get a fair appraisal. It shows that if appraisals are not fair, then an employee would
not be aware of their true performance level. This could affect their opportunity for
advancement in their jobs in the future. It can also affect employees moral as good appraisal
results motivate employees to work even harder. Therefore, inaccurate ratings results in
frustrated employees, inappropriate rewards and punishment.
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CHAPTER-9
QUESTIONNAIRE
QUESTIONNAIRE
Name:
1. Since how many years you have been working in ThinkNEXT Technologies
Pvt. Limited Mohali ?
a) Less than one year
b) 1 2 years
c) 2 3 years
2. Does the system provide you a chance to communicate the support you need from
your subordinate to perform the job well.
a) Yes
b) No
b) MBO
c) BARS
d)
360
degree
feedback
e)Balance
scorecard
b. Quarterly
d. Annual
e. Anytime
c. Half Yearly
De-motivation
b.
Retention
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c. Ineffective teamwork
6. Are employee's comments and suggestions taken into consideration before the
appraisal?
a. Yes
b .No
b. Peer appraisal
d. Self-rating
e. Appraisal by subordinates
c. Rating committees
b. No
9. Are the standards on the basis of which the performance appraisal is carried out
communicated to the employees beforehand?
a. Yes
b. No
10. Does the company give an opportunity to the appraisee to rate his own
performance?
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a. Yes
b. No
b. No
b. Agree
c. Neutral
d. Strongly disagree
e. Disagree
BIBLIOGRAPHY
74
BOOKS
INTERNET
WEBSITES:
www.Google.com
www.yahoo.com
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