A

SUMMER TRAINING REPORT

ON
“PERFORMANCE APPRAISAL”
AT

SHIVA INDUSRTRIES

SUBMITTED TO
Kurukshetra University, Kurukshetra
In the partial fulfillment of the requirement of
BACHELOR OF BUSINESS ADMINISTRATION
(SESSION : 2019-20)

UNDER THE GUIDANCE OF: SUBMITTED BY:

Ms. Diksha Chawla Komal Devi

Assistant Professor, BBA -5 Semester.
Department of Commerce Univ. Roll No. 170005119

and Management

GURU NANAK GIRLS COLLEGE

YAMUNA NAGAR-135001
(SESSION 2019-2020)
 DECLARATION

I Komal Devi, do hereby declare that the training report entitled

“PERFORMANCEAPPRAISAL AT SHIVA INDUSTRIES” submitted by me for
the award of Bachelor of Business Administration (BBA) from Kurukshetra
University, Kurukshetra is the original work conducted by me. The data and facts
provided in the report are authentic to the best of my knowledge.

This report is not submitted to any other Institute / University for award of degree of
BBA.

Komal Devi
 ACKNOWLEDGEMENT

Presentation inspiration and motivation have always played a key role in the success of any venture .

I express my sincere thanks to Dr. Virender Gandhi, Principal, Guru Nanak Girls College, Yamuna
Nagar. .

I feel to acknowledge my indebtness and deep sense of gratitude to Dr. Madhu Kapoor, (H.O.D.,
Department of Commerce and Management) & Ms. Diksha Chawla (Assistant Professor Department of
Commerce and Management), Guru Nanak Girls College, Yamuna Nagar, whose valuable guidance and
kind supervision given to me through out the course which shaped the present work as its show.

I am immensely obliged to my friends for their elevating inspiration, encouraging guidance and kind
supervision in the completion of my project .

Last, but not the least, my parents are also an important inspiration for me , so with due regards , I
express my gratitude to them .

Komal Devi
 PREFACE

It is a great opportunity for me to have the Bachelor of Business Administration (B.B.A) in Guru
Nanak Girls College, Yamuna Nagar in the accomplishment of this degree I am submitting a
training report on “Performance Appraisal” subject to the limitation of time efforts and resources
every possible attempt has been made to study the problem deeply. The whole report is measured
through the questionnaire, the data further analyzed and interpreted and the result was obtained.
 CONTENTS
Certificate

Declaration

Acknowledgement

Preface

Sr. No. Chapter Name Page No.

1 Introduction 6-20

2 Company Profile 21-30

3 Review of Literature 31-34

4 Research Methodology 35-39

5 Data Analysis & Interpretation 40-56

6 Conclusion 57-60

Findings

Suggestions

6 Annexure 61-67

Bibliography

Questionnaire

5
INTRODUCTION
6
 INTRODUCTION
The history of performance appraisal is quite brief. Its roots in the early 20th century can be
traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the
same may be said about almost everything in the field of modern human resources
management.
As a distinct and formal management procedure used in the evaluation of work
performance, appraisal really dates from the time of the Second World War, about seventy
years ago. Yet in a broader sense, the practice of performance appraisal is an ancient art. In
the scale of things historical, it might well lay claim to being the world's second oldest
profession! There is, says Dulewicz (1989), "... a basic human tendency to make
judgements about those one is working with, as well as about oneself." Appraisal, it seems,
is both inevitable and universal. In the absence of a structured system, people will tend to
judge the work performance of others, including subordinates, informally and arbitrarily.

The hardwired human inclination to judge can cause big problems in the workplace.
Without a structured system of appraisal, there is little if any chance of ensuring that such
judgements will be accurate, fair and useful. Performance appraisal began as an attempt to
rationally correlate rewards and outcomes. That is, appraisal was used to decide whether or
not the salary or wage of an individual employee was justified. The process was firmly
linked to material outcomes. If an employee's performance was found to be less than ideal,
a cut in pay would follow. On the other hand, if their performance was better than the
supervisor expected, a pay rise was in order.

Little consideration, if any, was given to the developmental possibilities of appraisal. If was
felt that a cut in pay, or a rise, should provide the only required impetus for an employee to
either improve or continue to perform well. Sometimes this basic system succeeded in
getting the results that were intended; but more often than not, it failed. For example, early
motivational researchers were aware that different people with roughly equal work abilities
could be paid the same amount of money and yet have quite different levels of motivation
and performance.

These observations were confirmed in empirical studies. Pay rates were important, yes; but
they were not the only element that had an impact on employee performance. It was found
that other issues, such as morale and self-esteem, could also have a major influence.
7
As a result, the traditional emphasis on reward outcomes was progressively rejected. 950s
in the United States, the potential usefulness of appraisal as tool for motivation and
development was gradually recognized. The general model of performance appraisal, as it
is known today, began from that time. In order to be effective and constructive, the
performance manager should make every effort to obtain as much objective information
about the employee's performance as possible.

Performance appraisal is a process of summarizing, assessing and developing the work

performance of an employee.

Performance Appraisal is a review and discussion of an employee's performance of

assigned duties and responsibilities based on results obtained by the employee in their job,
not on the employee's personality characteristics. Personality should be considered only
when it relates to performance of assigned duties and responsibilities.

It is a structured formal interaction between a subordinate and supervisor, that usually takes
the form of a periodic interview (annual or semi-annual), in which the work performance of
the subordinate is examined and discussed, with a view to identifying weaknesses and
strengths as well as opportunities for improvement and skills development.

In many organizations - but not all - appraisal results are used, either directly or indirectly,
to help determine reward outcomes. That is, the appraisal results are used to identify the
better performing employees who should get the majority of available merit pay increases,
bonuses,etc.
Meaning:

Performance appraisal is the process of evaluation of an employee at higher levels. In order

to know whether the selection of an employee is right or wrong, performance appraisal is
resorted to. Promotion, transfer, salary increase etc. are some of the matters that are
dependent upon the evaluation of the performance of an employee.

Performance Appraisal is regarded as a most significant tool for the success of any concern.
The main objective of performance appraisal is to improve the efficiency of a concern by
mobilising the best possible efforts from individuals employed in it.
Increase meaning

Definition:
Performance appraisal is a systematic, periodic and so far as humanly possible, the
impartial rating of an employee’s excellence in matters pertaining to his present job and to
his potentialities for a better job. ”

“It is the evaluation or appraisal of the relative worth to the company of a man’s services on
his jobs.” —A1 ford & Beatty
“Performance appraisal is a process of evaluating an employee’s performance of a job in
terms of its requirements.”—Scot, Clothier & Spiegel

Features of Performance Appraisal:

1. Systematic process of evaluation of an employee.

2. Analysis of the strengths and weaknesses of an employee.

3. To find out how well an employee is performing the job.

4. Appraisal is done periodically.

5. It is based on a definite plan.

6. Performance appraisal is different from job evaluation.

7 .performance appraisals is a continuous process that is accepted by every organization.

Need for Performance Appraisal:

There are certain requirements expected from the employees for which performance
appraisal are conducted.

1. Providing information about the performance ranks on which decision regarding salary
fixation, promotion, etc. are taken.

2. Review of the performance of the subordinates.

3. Providing information that helps to counsel the subordinates.

4. Getting information to diagnose deficiency in employees regarding skills, knowledge, etc.

5. To prevent grievance and in disciplinary activities.:

PROCESS

The process consists of following steps:

1. Establish performance standards.

2. Communicate performance expectations to employees.

3. Measure actual performance.

4. Compare actual performance with standard.

5. Discuss the appraisal with the employee.

6. If necessary, initiate corrective action.

Advantages of Performance Appraisal:

A. Promotion:

Performance appraisal can help a lot when it comes to managers and their employees. Not
only does it allow the supervisor to chalk out all programmes of promotion but also makes
a lot of work easy for them.

In that way, those who don’t work hard enough or are inefficient are dismissed or demoted.

B. Compensation:

A second thing that performance appraisal helps in is called compensations.

Seniors can chalk out the packages for their employees in that way. Merit rating is always
possible throughout the appraisal of performance.

Several packages of compensation which include high rates of salary, extra benefits bonus,
allowances which are very much dependent on the appraisal of performance. The criteria
must also be merit instead of seniority

C. Development of employees:

The procedure is also helpful when it comes to development of employees. It helps them to
frame the policies of training and several other programmes alongside.
10
Not just that, it also helps them analyse their weaknesses and strengths so that all new jobs
are given to those who perfectly fit in. It may also allow them to frame the development
programmes in the future.

D. Validation and selection:

Performance appraisal also allows all managers and supervisors to understand what the
selection procedure is all about and who deserves a promotion and validity and who doesn’t.

The supervisors at this point understand their workers and colleagues in a much better way.
Future changes made in the methods of selection can be made in such regards.

E. Communication:

For all organizations, effective methods of commication between all employees and
employers are needed. Though appraisal of performance is needed, the communication
must be sought in several ways such as using the help of performance appraisal where the
employers are able to understand the skills and accept them.

Second is helping in the maintenance of cordial relationships with other workers,

developing team spirit and helping other employees get better. Apart from this, effective
communication is also needed.

F. Motivation:

Appraisal of performance can be used as a tool for inspiration and motivation. Through the
process of evaluation of the employees, the efficiency of the person can be determined once
all targets have been reached.

This could motivate a person quite well and also help them improve their jobs in the
upcoming years.

Disadvantage of performance appraisal:

1. Prone To Biasness:

Some ratters may rate one depending on the general impression one gives. For instance, one
might be rated high on all criteria even though he/she just performed well in a single area.
11
The ratter’s biases and prejudices also affect the process. These cases are seen when a one
gets underrated because of sex, religion, favouritism, appearance, and race.

2. Contrast Error:

Performance appraisal is always based specific standards, however, when one gets rated
without taking the standards into account a contrast error occurs. This also can occur if the
ratter looks at an employee’s current performance based on the past performance.

3. Generalization Tendency Error:

This occurs when a ratter rates everyone within a narrow range because he/she thinks that
the employees are all on the same level averagely.

4. Severity or Leniency:

Appraisals demand that an evaluator should objectively draw a conclusion regarding an

employee’s performance.

5. Sampling Error:

This occurs when a ratter uses a small portion of an employee’s work to draw a conclusion.

6. Regency And Primary Errors:

Employee behaviour at the start of the appraisal period and at the end can affect the process
a time. For instance, a salesperson’s performance varies with season, at times it can be low
and a time high.

Performance Appraisal Methods:

There are plenty of methods you can try for appraisal of performance. Some of the best
performance appraisal and its methods have been discussed here.

1. The method of grading:

In the method of grading, some of the categories have been made in advance and must be
defined in a careful manner. Three categories can exist in total. They should be named as
12
outstanding, unsatisfactory and satisfactory. There could be several more columns for the
grades if you want it that way.

The performance of the employees have often been compared with the definition of grades.
The employee then has to be allocated which describes them the best in terms of
performance. Such type of grading can be done in the method of semester especially when
it comes to selection of candidates in the public service sector.

The only negativity about this method is that all employees could be placed in the better
side in terms of performance.

2. Forced-Choice Method:

The method of forced choice came into existence years ago and is being practised till today.
It comes with a bunch of statements and the rater is expected to show how effectively every
statement will describe every individual and how it must be evaluated.

Common methods or choice methods come with two statements which could be negative or
positive.

A few examples of positive statement include giving proper and clear instructions, can be
relied on whenever a task has been assigned. Negative statements makes such promises
which are beyond his limit, favours some of the employees.

3. Method of check listing:

This is another traditional method you can try for measuring appraisals of your employees
today.

You must utilize the method of check listing so that the burden of evaluation is eased. In
this method, statements and questions which come with answers such as no or yes must be
prepared by human resource department members.

The check list must then be given to the one who is rating so that they can tick the box that
is correct. All questions are important and must be answered very carefully.
13
4. Method of cost accounting:

This method will evaluate the performance of the employee from the benefits that have
been yielded by the organization.

This has to be ascertained by simply establishing a relationship between costs which are
involved in helping the employee as well as the benefits which an organization derives.
When you are evaluating the performance of the employee by using this method, you must
take a few points down.

They include quality of the products that have been produced and the service which has
been rendered, the human relationship they share with others, the cost of time every
supervisor spends in appraising their employees, damages, spoilages, errors, accidents etc.
14
 PERFORMANCE APPRAISAL PROCESS

Here are six steps which are required during the process of performance appraisal. Every
step is crucial so read all of them thoroughly before making any important changes in your
regular methods.

1. Establishing high standards of performance:

The process of appraisal starts when the standards of performance has been established. The
senior managers have to determine what kind outputs, accomplishments and skills need to
evaluated.

All of these standards must be evolved out of job descriptions and analysis. The standard of
performance should always be concise and clear so that the objective can be measured and
understood accordingly.

2. Communicating expectations towards all employees:

Once the standards of performance have been built, you must remember to communicate the
matter accordingly to all employees so that they may know what is expected out of them.

The old experiences also show that not being able to communicate towards the employees so
that they know what must be expected. Apart from that, it has also been stated that the standards
of communication towards all employees will compound the problem of appraisal.

However it must be noted that transferring information from your manager towards the
employees is not exactly communication. It could become communication only when
transferring information has taken place and has been understood by all employees.

3. Measuring the real performance:

The third step that must be taken during the process of appraisal is measuring of the actual
performance.

During this stage, the real performance of all employees is measured on the sort of
information that is available from different kinds of resources for example oral reports,
written reports and even statistical reports.
15
Personal observation also matters in matters like these. The feeling of the evaluator shall
never influence the measurement of performance of the employees. Measurements have to
be based on objectives, findings and facts stated.

The reason behind this is that what we will measure becomes more important to the process
of evaluation than how we are measuring it.

4. Comparing performance with the standards:

During this stage, the real performance is always compared with standards that are
predetermined. Such comparisons could reveal deviations between actual and standard
performance and will also allow the evaluator that will proceed to the other steps of the
entire process.

In short, having a proper and detailed discussion with those who are concerned in the matter!

5. Discussing with all employees:

Next what you must do in the process of appraisal is communicate and discuss what the
results of the appraisal are with the employees concerned. This happens to be quite a
difficult and challenging task to accomplish for the manager who is expected to present an
appraisal that is accurate for all employees and make them understand and accept their
appraisal in a realistic manner.

When you discuss matters like these with them, you are able to understand and assess their
strengths and weaknesses in a much better way. It will also help them perform better in the
near future. The impact could be either negative or positive depending on how it has been
shown to the employees and discussed with them.

6. Corrective actions:

The final and most important step in the process of appraisal is initiating the corrective
action whenever it is needed. The areas which need any improvement must be identified
and then the measures have to be improved and corrected so that the performance improves
with time and has been identified at the same time.
16
Corrective action again could be divided in two. The first one deals with symptoms mostly.
It is called putting out fires. The second one is about what causes such deviations and looks
for adjustment of differences.

With that, we would like to bring the post to a close. If you have liked reading the article,
have found some benefit from it and have some important feedback to give us, do feel free
to comment in the box below. Also if you have any questions or doubts you would like to
clarify, let us know about some of it. We would love to help you on that.

Always remember that the concept of performance appraisal is not easy but you can
definitely work on a few things and make it better. On that note, good luck!
17
 FACTOR AFFECTING:

Ability

 The skills and knowledge which are used to carry out the tasks required.
 Character traits can affect ability considerably and must be taken into account.

Effort

 The amount of physical or mental energy that a person is prepared to expend on a

job to reach a certain level of performance.
 This will vary according to how well engaged and employee is within their role and
the company.
 Effort is affected by motivation and incentives.

Motivation

 Many people who are not motivated keep their performance to an acceptable level,
however they are only working to up to 30% of their potential ability.
 Managers who know how to motivate their employees will achieve 80-90% of the
individual’s ability and higher levels of performance.

Employee expectations

 Employees expect to get a certain reward for a certain effort.

 They expect to get promoted if they undergo training and reach their targets and
goals.
 They expect to be treated similarly to others that are employed within the company.
 If employee expectations are not met, it will affect the amount of effort they put into
their role.

Job perception

 Is the job seen to be important or of value to the organization?

 Is the job seen to be important or of value to workmates?
 Is the job seen to be important or of value to the individual?
18
  Standards & job descriptions must be known and understood.

Environmental factors (which an employee has no control of)

 There is a lack of adequate resources.

 There are conflicting priorities or information overload causing confusion and stress.
 Other staff and departments may not have been cooperative.
 The restrictive policies of the organization may have prevented the individual from
using her initiative and imagination to the extent that he/she wished.
 The quality of the management exercised may have been defective - some people need
encouragement and support, whereas others like to be left to get on with the job.

Recent trends:

1. A desire to gain feedback from a range of people:-

Distinct from traditional developmental 360 feedbacks around a competency framework we

often see appraisal feedback being sought from a range of people. We have gone from this
requirement being rare to it being common. The changing nature of the workplace, of
teams, and of the manager-employee relationship has driven this requirement. The common
aim is to ensure a rounded and accurate picture of performance is gained.

2. A move away from the annual grade:-

In the early days of Boland this was sacrosanct. Now, we are either asked to remove it or in
our consultation sessions we come under great pressure from the appraisers and appraises to
encourage the HR team to drop the grade. With inevitable conflicts for those organisations
who link pay to appraisal, this is a hot topic.

3. Simplify:-

Letting the system and process get out of the way and allowing the conversation to take
pride of place has been a Boland mantra. New clients and our existing clients are
increasingly looking to simplify the form, particularly around objective setting, to quieten
down the appraisal process and leave appraisers and appraisees with the energy to have a
great and meaningful conversation.
19
4. Continuous feedback and continuous recording:-

The twitter and facebook factor. While not yet being seen as a mainstream activity we are
now regularly implementing the ability to “keep the process” alive throughout the year by
providing performance logs, update sections, and other continuous recording methods.

5. Focusing on the future:-

Appraisals were very backward focused. What happened? What went well? What did you
do wrong? What is your grade? Increasingly (and it’s a good thing!) there is a focus on the
objective setting, development plan, and the future. How will we improve? How do we
achieve more in the coming year? This is a particularly positive change that leads to
improved conversations.

Carefully implemented I see all of the above as positive trends. While at Boland we will
always support the culture, requirements, and particular drivers of a client we look to share
best practice and ideas to help each client make the best decisions for them.

Objectives of Performance Appraisal:

Performance appraisal aims at attaining the different objectives, they are:-

 To create and maintain a satisfactory level of performance.

 To contribute to the employee growth and development though training, self

and management development programmes.

 To help the superiors to have a proper understanding about their subordinates.

 To facilitate fair and equitable compensation based on performance.

 To facilitate for testing and validating selection tests, interview techniques through
comparing their scores with performance appraisal ranks.

 To provide information for making decisions regarding lay off, retrenchment etc.
20
COMPANY PROFILE
21
 ALLSOFT SOLUTIONS & SERVICES PRIVATE LIMITED

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FACTSHEET
BASIC INFORMATION:

Nature of Business Service provider

Company CEO Shefaly dutta
Year of Establishment 2001
Legal status of firm Private limited company
22
VALUES:
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23
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24
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25
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26
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researching your MARKETS, measuring the competition for these keywords, what your
competitors are targeting and what your potential customers are searching on.

Competitor Analysis:– To research the competitors and their search engine

MARKETING: - processes and targeted customers. Resulting in a SEM strategy focused
directly on achieving the highest rankings for the most relevant keywords.

Campaign mapping: – Strategize and Map SEM campaigns result in optimizing and
improvising the process.

Ad creation: – To create innovative text and image advertisements.

Bid Management:– Understanding the value of clicks; this includes managing the bid
levels at various stages of the campaign.

Contextual Advertising:– Delivering ads to target web sites, portals and social media sites
that are directly related to the content being viewed, helping to ensure that the right
audience gets your message.

Campaign tracking and reporting:– One of the key benefits of SEM over other
traditional MARKETING vehicles is the highly measurable results. We believe in regular
reporting so you can track your campaign progress every step of the way. Reports of
ranking, link building, progress and analytics are delivered on time.
28
 VISION AND MISSION OF THE COMPANY

VALUE TEAMWORK

A2it Team values collaboration. In a teamwork environment, people understand and believe
that thinking, planning, decisions and actions are better when done cooperatively. People
recognize, and even assimilate, the belief that “none of us is as good as all of us.

LEAD BY EXAMPLE

We understand every company has a different requirements and unique parameter when it
comes to Web Designing and Development. In the competitive environment, we make your
projects to be able to stand out from your competitors.

FOCUS ON THE FUTURE

We focus on the future, not on the past because better days lie ahead. It is time for us to turn a
corner and come together, put our differences behind us and focus on the future technologies,
in order to deliver the best in everything.

BE RESPECTFUL

We communicate openly, honestly, and respectfully in a timely manner. All emails and phone
calls which require a response will be answered within 24 hours or sooner. Internal A2it and
external communications with customers and teammates have equal priority.

CHALLENGE THE STATUS QUO

Our mission is that your requirements being met on time and with high quality. We deliver
products that are cost – effective and as per customer requirements. We translate
technologies into value for our customers.
STRIVE FOR EXCELLENCE

Excellence is not just a word; it is an ethics in a2it. We try to make excellence a habit. We
deeply value customer satisfaction. We try our best to deliver product to customer within
time as per their requirements.
29
VISION
To be the competent and complete value added technology partner to our clients and be the
admired Global software solutions & services provider in Information Technology space in
our chosen markets.

MISSION

To deliver the right business solutions that integrate People, Process and emerging
Technology to help our clients to achieve the business benefits of a collaborative enterprise
at very nominal prices compared to market.
30
REVIEW OF LITERATURE
31
 REVIEW OF LITERATURE
Planning is the first and most crucial function of management; “Well plan is half done”, it
means looking ahead and designing future courses of action to be followed which tells
where we should begin and how things will be in an organization. Therefore planning
makes possible effective co-ordination & perfect adjustment between present and future
developmental needs of the organization. It is easy for human beings to learn from the past
experiences and make the plan for the future. In this context, a review is made of the
existing relevant literature available on the topic of research.

Graeme Redshaw (2008) has written in this article is about to improve the performance
appraisal system of nurses in organization. Author distributed questionnaire to 8 nurses to
know about the performance appraisal system of the organization. 7 nurses were nervous
before the appraisal and 1 was confident after the appraisal all nurses were agreed with the
outcomes of appraisal. If the successful appraisal system is established so there will be clear
aims and objectives, and will be able to implement fairly. Proper training will be provided
to the managers to appraise the staff correctly.

Diane Shaffer(May 11, 2009) has written in his article writer has discussed that motivation
and performance appraisal are interrelated. Motivation is dependent on performance
management. Employees who are motivated and happy with their jobs want to stay
connected with the company for a long time.

Many organizations have not implemented correct performance appraisal system to evaluate the
performance of employees. Author has discussed here that they should implement a successful
appraisal method/system and also give reward to employees who perform good in the
organization. Through this practice employee become motivated towards their jobs and improve
their performance and performance of organization as a whole will also improve.

Almuth McDowall (2009) has discussed in his article that due to the high level of
competition training and development has become very important. It’s a era of
globalization so it is playing a key role for the organization to get competitive advantage.
While selection of activities including coaching, 360 degree appraisal and development
centers (DCs) are become linked to development. In this article 360 degree appraisal has
been discussed that it is very important to give the feedback to the employees about their
32
performances. Positive feedback motivates the employees and they become more willing to
work for further development programs. The authors examine different development
activities with the aim being to provide a framework with which to assess each one’s
effectiveness. They compare the processes incorporating a range of significant factors and
highlight several important implications that arise for any aim to meet organizations.

Donald L. Caruth (2009) has discussed that the purpose of this paper is to demonstrate the
need for and propose a more aligned and integrated standard for performance evaluation to
enhance effective strategic control. The paper reviews the various issues creating discontent
with the performance appraisal systems within many organizations and demonstrates how
these problems inhibit successful strategic control. It attempts to cogently incorporate the
performance appraisal characteristics needed for the exercise to function as a critical
organizational control metric and a useful feedback mechanism for strategic management of
the firm. The paper finds that, whereas performance evaluation has received reasonably
robust examination in the human resources literature, explicit guidance toward the
integration with strategic control is inadequate. Without consistent alignment between these
functions, however, performance appraisal becomes an exercise in futility instead of a vital
control measurement, often resulting in not only personnel dissatisfaction, but also, more
importantly, an impediment to systematic strategy implementation.

H.C. Shiva Prasad(2010) in this research paper authers have done work to dheck the
performance of indian software professionals (SPs) Data were collected from 441 software
and senior software engineers from eight Indian software firms. The team leaders assessed
the performance of software and senior software engineers on 16 items. The exploratory
and confirmatory factor analyses of scores on 16 items of the instrument suggest six
dimensions of performance. They are work-efficiency, personal resourcefulness, inter- and
intra-personal sensitivity, productivity orientation, timeliness, and business intelligence.
The dimensions have reliability and high convergent validity. SPs having more years of
experience, higher need for achievement, and higher need for social power are high
performers. Human resource managers can evaluate the performance of SPs holistically on
six dimensions for training, reward administration, and promotion decisions.
33
 OBJECTIVES OF THE STUDY

 To review the performance of the employees over a given period of time

 To judge the gap between the actual and the desired performance.
 To help the management in exercising organizational control.
 Helps to strengthen the relationship and communication between superior
– subordinates and management – employees.
 To diagnose the strengths and weaknesses of the individuals so as to identify
the training and development needs of the future.
 To provide feedback to the employees regarding their past performance.
 Provide information to assist in the other personal decisions in the organization.
 Provide clarity of the expectations and responsibilities of the functions to
be performed by the employees.
 To judge the effectiveness of the other human resource functions of the
organization such as recruitment, selection, training and development.
 To reduce the grievances of the employees.
34
RESEARCH METHODOLOGY
35
 RESEARCH METHODOLOGY:
The methodology of research used in this study basically includes literature survey,
industrial survey, and verification by statistical techniques. Nonetheless, there were also
some limitations incurring from the industrial survey results that may lead to
misinterpretation discussed at the end of the chapter.

The present study was undertaken to assess the method of Performance Appraisal Systems
in a few selected Industries of Mysore District. This chapter explains the purpose, design of
the study, objectives, hypotheses, participants, instruments, procedure and statistical
techniques used.

Research on performance appraisal system is of great relevance to modern society as it

provides a new dimension to the understanding and dealing of social and organizational
problems in industries. The psycho-social approach to the problem of performance
appraisal of an employee in the organization has widened the scope of appraisal research as
it calls for the study of the appraisal system in the organization from which the various
variables originate.

A substantial number of studies have been reported about performance appraisal under
normal as well as isolated work environment. It is well established that the competency
required for different occupation/ jobs vary not only in nature but in term of quantum of
performance.

A review of performance appraisal research clearly reveals that most of the research in this area
has concentrated only on industrial and commercial organizations especially under normal work
environment. Performance appraisal is a global phenomenon affecting all professions and
certain categories of employees. It is often assumed that employees in certain industries based
on their nature of work require more amount of performance appraisal.

Performance is one of the most deliberating personal and organizational problems of

modern globe. Challenges posed by the changing business scenario have imposed
employees to perform their task under a very compelling situation. Performance has
become an inevitable part of human life in recent times in whatever is the nature of job. It
makes life more challenging and charming if it is excellent. However, when performance is
below the ability of a person, it causes disturbances in his/her life sphere.
36
Performance appraisal has its roots in the demands of 95 organizations. Thus it is clear that,
performance as a concept, it is naturally occurring which may have beneficial or destructive
consequences, depending upon how it is managed. There have been many incidents, where poor
performance has lead to destructive consequences and vice versa; especially among the
employees in industries, it has been found necessary to carry out this study.

This study aims at throwing light on the process of performance appraisal and how it can be
effectively managed. Hence managing the process of performance appraisal has become a
subject of prime importance. Better management related to performance leads to a happy
and efficient work force.

DATA COLLECTION METHOD

It is a systematic procedure of collecting information in order to analyze and verify a

phenomenon. The collection of information has been done through two major sources:

1.PrimaryData2.SecondaryData:-

Primary Data:

It is the information collected directly without any reference.

In this study, it is gathered through interviews with various employees, human resource officers and
other concerned 28 people. Some of the information were verified and supplementedthrough
personal observation.

Secondary Data:

The Secondary data was collected from already published sources such as pamphlets, annual reports,

various journals and internal records. The data collection includes:

•Collection of required data from annual report of JK. Papers Ltd.

• Reference from textbooks and journals relating to the paper industry in India.

Annual reports of the company

37
 LIMITATION OF THE STUDY
1. LACK:

The objective of performance appraisal is to evaluate and develop employees. An

organization should avoid using one appraisal system to achieve both objectives.
The particular system of the appraisal system should clarify before it is designed and
should be discussed with all managers and employees to gain their commitment.

Any performance appraisal system, however good the design, is unlikely to succeed
if the managers and employees are suspicious of its objectives. It is extremely
difficult if not impossible to device a system that will be able to satisfy both
performance and reward. It happens because employees are likely to resist negative
feedback and tend to be defensive when weakness in current performance is
identified. It is because of this type of overlap in purposes that the appraisal loses it’s
practically and increases the conflict between the manager and the employees.

2. APPRAISAL ERRORS:

Halo, Regency, Contrast effects: the Halo effect occurs when a manager rates an
employee high or low on all teams, because of one characteristic. For instance; if an
employee has few absences, his manager might give him high rates in all other area
of work. The regency effect happens when a ratter gives greater weight to recent
occurrence when appraising an employee’s performance. This sort of effect is an
understandable rater’s error. It may not be easy for the manager to remember all
events that happened like for instance; six months ago. Contrast error occurs when
employees are rated relatively to other employees rather than to performance
standards.

3. UNEQUAL PERFORMANCE STANDARDS:

People differ from each other in the way they perceive things. What is good for
some may be bad for others. Therefore managers have different judgments in
appraising their employees. Managers’ attitudes to their employees differ, so
different managers will appraise the same people quite differently which could make
appraisal system subjective and manipulative.
38
4. CULTURE:

Culture has profound impact on the appraisal system as it should be in consonance

with the organizational culture. A system based on the employee participation and
openness would be non-starter if the organizational culture is authoritarian and non-
participative in its approach to other employee related policies. ‘Readymade’
performance review system imported from other organization rarely function
satisfactorily. Their failure is partly due to culture differences. Thus culture is a vital
factor to look after.

5. Central Tendency: -some raters may follow central tendency approach. Average
scores are given to all rates. Those who perform well are given average scores and
those who do not perform well are also given average scores. Usually central
tendency is caused by lack of information.
6. Cost Factor: - Performance appraisal is an expensive activity. At times, experts may
be appointed to conduct Performance appraisal. Therefore, the organization may
have to pay good amount of fees to performance raters.

7. Problem of Leniency (mercy): - some raters are very lenient in their appraisal.
They give high scores to everyone, irrespective of their performance. Those who
perform well are given high scores and those who do not perform well are also
giving high scores.

6. Latest Behavior effect: -Rating is influenced by the most recent behavior ignoring
the commonly demonstrated behavior during the entire appraisal period. If the latest
behavior is good, the ratee will get high scores and vice-versa.

7. Problem of Strictness: - Some raters are strict in their appraisal. They tend to give low
scores to all the rates irrespective of their performance. Those who perform well are
given lower scores and those who do not perform well are also given lower scores.
8. Spillover (overflow) Effect: - In this case, the present Performance appraisal is
greatly influenced by past performance. “A person who has not done good work in
the past is considered to be bad at work in the present as well.”
9. Fear of confrontation: - Sometimes, supervisors tend to give above average rating
to below average performers, so as to avoid confrontation.
39
DATA ANALYSIS AND INTERPRETATION
40
 DATA ANALYSIS & INTERPRETATION

Human Resources are the greatest assets for any organization.

These recourses should be developed to their fullest extent for the efficient functioning of an
organization and their performance needs to appraise continuously. The present study is
aimed at analyzing the “Performance Appraisal system” at Allsoft India Ltd. is a felt, need
and justification to conduct surveys and to know the perceptions of employees regarding
existing practices. A structured questionnaire has been surveyed among 40 respondents by
adopting strata technique. And their perceptions are analyzed and interpreted in this chapter.
For the purpose of survey, a sample of 40 employees has been taken into consideration with
a view to assess the "Performance Appraisal System" in Allsoft India Ltd. performance
appraisal helps in the assessment of individual potential.
41
 Table-5.1 Performance Appraisal is the assessment of individual potential.

Rating Scale No. of Respondents Percentage (%)

Strongly Agree 7 17.5
Neutral 4 10
Strongly Disagree 0 0
Agree 29 72.5
Disagree 0 0
Total 40 100

Fig. 5.1
Interpretation :

From the above table-5.1 it can be known that 72 % of respondents have agreed about the
assessment of individual potential and 17.5 % of them have strongly agreed of the above
statement and 10 % of the employees are in a neutral stage and where no ne of them have
disagreed for the above statement. So majority of the respondents i.e. 72.5 % of the
respondents have agreed about the assessment of individual potential. From the above
analysis we can interpret that, some of the employees were in neutral position, because the
appraisal system in the organization was not in a full fledge way.
42
Table-5.2 Performance Appraisal system followed in the organization is rational and
fair:

Rating Scale No. of respondents In Percentage (%)

Strongly Agree 1 2.5
Neutral 12 30
Strongly Disagree 1 2.5
Agree 22 55
Disagree 4 10
Total 40 100

Fig. 5.3
Interpretation:

From the above analysis we can interpret that, some of the employees were in neutral
position. Because the organization doesn’t following the company’s policies fairly:
43
 Table-5.3 Job expectations are informed and the superiors set the tasks.

Rating Scale No. Of respondents In percentage (%)

Strongly 3 7.5
Netural 10 25
Strongly 0 0
Agree 24 60
Disagree 3 7.5
Total 40 100

Fig. 5.3

Interpretation :

From the above table-5.3 it can be known that, 60% of respondents have agreed that the job
expectations are informed and the superiors set dietasks.And 25% of dieresponde nts are in
neutral stage and 7,5% strongly agree for

Above statement and where as 7.5%of the respondents disagree for die above statement,
none of them are in a stage of stronglydisagree opinion.

The above analysis shows that, some of employees were in neutral position. Because the
job expectations were not informed, and the tasks were not assigned by superiors properly.
44
Table-5.4 Performance Appraisal followed in the Organization helps to the
Training and development needs of employee.

Strongly Agree No. of respondents In Percentage (%)

Strongly 6 15
Na 4 10
Strongly 0 0
Agree 27 67.5
Disagree 3 7.5
Total 40 100

FIG. 5.4
Interpretation

From the above table-5.4 it is found that, 67.5% of respondents have agreed for the
performance appraisal followed in the organization helps to assess the training and
development needs of employee and I5 % of them have strongly agreed in ID-% of the
respondents are in neutral stage and the remaining 7.5% of the respondents are in disagreed
opinion. Where none of them are is strongly disagreed opinion. The above analysis states
that, majority of the employees opined that a good performance appraisal system in the
organization, helps to train and develop an employee in all aspects.

45
Table-5.5 The Performance appraisal in the organization helps to recognize the
competence and potential of an individual:

Rating Scale No. Of respondents In percentage (%)

Strongly Agree 4 10
Neutral 3 7.5
Strongly Disagree 1 2.5
Agree 30 75
Disagree 2 5
Total 40 100

Fig. 5.5

Interpretation :

From the above table-5.5 it is found that, 75% of respondents have agreed for the
performance appraisal in the organization helps to recognize the competence and potential
of individual and 10% of the respondents have strongly agreed, and 7.5% of the
respondents are in neutral stage and5% are in disagreed opinion where as 2.5% of the
respondents strongly disagree for the above statement The above analysis elicits that, some
of the employees were in neutral and disagree position. Because the appraisal process in the
organization is not that much effective.
46
Table-5.6 Employees are happy with the assessment of performance followed in the
organization

Rating Scale No. of respondents In percentage(%)

Strongly Agree 3 7.5
Neutral 14 35
Strongly Disagree 0 0
Agree 18 45
Disagree 5 12.5
Total 40 100

Fig. 5.5
Interpretation:

From the above table-5.6 it is found that, 45% of respondents have agreed They are happy with
the assessment of performance appraisal followed in the organization. And35 % of the
respondents are in neutral stage and 12.5% of the respondents are in a disagreed stage where
7.5% have strongly agreed for the above statement but none of them have strongly disagreed for
this statement We can interpret that, most of the employees were in disagree and neutral
position. Because the assessment system in the organization was not up to the mark
47
Table-5.7 Employees have been appraised fairly according to the company's policies

Rating Scale No. of respondents In percentage (%)

Strongly Agree 2 5
Neutral 13 32.5
Strongly Disagree 0 0
Agree 23 57.5
Disagree 2 5
Total 40 100

Fig. 5.7

Interpretation:

From the above table-5.7 it is found that, 57.5% of respondents have agreed that the employees
have been appraised fairly according to the company policies and 32.5% of the respondents are
neutral stage and 5% of them are strongly agree and where as 5% of the respondents disagree
for the above opinions and none of them have disagree for the above opinion. Here we can state
that, most of the employees were in disagree and neutral position. Because performance
appraisal was not done fairly according to the companies policies.
48
Table-5.8: Advises and suggestions are given to the employees during the
appraisal process.

Rating Scale No. of respondents In percentage (%)

Strongly Agree 3 7.5
Neutral 15 37.5
Strongly Disagree 0 0
Agree 10 25
Disagree 12 30
Total 40 100

Fig. 5.8
Interpretation:

From the above table 5.8 it is found that, 30 % of respondents have disagreed that advises and
suggestions are given to the employees during the appraisal process and 25% of them have
agreed and 7.5% of the respondents strongly agree and majority of the respondents i.e.37.5%
are in a neutral stage and none of them have disagreed for the above statement.
The above analysis exhibits that, employees are expecting many more suggestions and
advises, during the appraisal process that would be helpful for their career.
49
 Table-5.9 The employees accept the appraisal feed back as:

Rating Scale No. of respondents In percentage (%)

Positive way 3 7.5
Uninteresting 15 37.5
Negative way 0 0
Neutral 10 25
Total 40 100

Fig. 5.9

Interpretation :

From the above table -5 .9 it is found that, 50 % of respo ndents have a positive way
regarding acceptance of the appraisal feedback. And 47.55 of them are in neutral opinion
and 2.5% of the respondents feel it uninteresting on the above statement. And none of them
have a negative acceptance of this statement This analysis shows that, employees are not
much interested in taking the appraisal feedback.

50
 Table-5.10 The appraiser of the company should be.

Rating Scale No. of respondents In Percentage (%)

Superior 13 32.5
HOD 25 62.5
Subordinate 1 2.5
Peer groups 1 2.5
Total 40 100

Fig. 5.10
Interpretation

From the above table-5.10 it is found mat, 62.5perecent of respondents feelthat their HOD
should be their appraiser and 32.5% of them feel that their superior should be the appraisal
and 2.5% of the respondents feel that their subordinates and peer groupsshould be the
appraiser. This states that, the appraiser should be the head of the department, the employee
feel that he is the right person to evaluate their performance.
51
 Table 5.11 Employee need to be assessed as:

Rating Scale No. of respondents In percentage (%)

Once in 3 month 8 20
Once in 6 month 11 27.5
Once in a year 21 52.5
Total 40 100

Fig. 5.11
Interpretation:

From the above table-5.11 it is found that, 52.5% of respondents feel that their appraisal system
should be once in a year and 27.5% of the respondents feel that it should be twice in a year (6
months) and where as 20% of the respondents feel that it should be for every 3months. Here, the
employees felt that, they need to be assessed once in a year, asthey felt it is a right period of time to
assess the performance
52
Table-5.12 The performance appraisal followed in the organization makes the
employees.

Rating Scale No. of respondents In percentage (%)

Motivating 38 95
De movitating 2 5
Total 40 100

Fig. 5.12

Interpretation :

From the above table-5.12 it is found that, 95% of respondents are motivated
towards performance appraisal followed in the organization and 5 % of the respondents
demotivates for the above statement. So majority of the respondents i.e.. 95 % of the
respondents have motivated towards the appraisal system followed in the organization.
From the above study, employees felt performance appraisal system as a motivating factor.

53
Table-5.13 Types of errors / problems have impact on performance rating in
the Organization.

Rating Scale No. of respondents In percentage(%)

Influence 9 22.5
Attitude 16 40
Biased 8 20
Personal Grudge 1 2.5
Subjectivity 5 12.5
Status Effect 1 2.5

Fig. 5.13
Interpretation:

From the above table-5.13 it is observed that, appraisal system is rated by attitude that is
40% and 22.5% of the respondents by influence and 20% by biased, 12.5% by subjectivity
and 2.5% by personal grudge and remaining 2.5% by status effect. The employees opined
that, attitude factor have a greater impact on the performance appraisal system
54
 Table 5.14 Feedback on Performance is communicated after assessment of
the Performance
Rating Scale No. of respondents In percentage (%)
Yes 19 47.5
No 21 52.5
Total 40 100

Fig. 5.14
Interpretation:

From the above table- 5.14 it is found that, 52.5% of respondents disagree that feed back on
performance is communicated after assessment of the performance appraisal. And 47.5%of
the respondents agree for the above statement. So majority of the respondents i.e. 52.5 % of
the respondents have disagreed that the feedback on performance is communicated after
assessment of the performance appraisals

Here, the some of the employees express their view that, the performance feedback need
not be communicated after the assessment, while some of them felt that it is essential.

55
 Table-4.15 Employees are aware of 360-degree appraisal:

Rating Scale No. of respondents In percentage (%)

Yes 11 27.5
No 29 72.5
Total 40 100

Fig. 5.15

Interpretation:

From the above table- 5.15 it is found that, 72% of respondents are not aware of 360-degree
appraisal, 28% of respondents are not aware of 360-degree appraisal. Most of the
respondents are not aware of 360-degree appraisal

56
FINDINGS, SUGGESTIONS & CONCLUSION
57
 FINDING:
 More than half of the employees (72.5%) agree that Performance Appraisal is the
assessment of individual potential.

 Some of the employees (30%) neutral that Performance Appraisal system followed
in the organization is rational and fair.

 Some of the employees (25%) neutral that Job expectations are informed and the
superiors set the tasks.

 Most of the employees (67.5%) agree that Performance Appraisal followed in the
Organization helps to the Training and development needs of employee.

 Some of the employees (5%) disagrees that the performance appraisal in the
organization helps to recognize the competence and potential of an individual

 Less than half of the employees (35%) disagrees that they are happy with the
assessment of performance followed in the organization.

 Most of the employees (32.5%) neutral that they have been appraised fairly
according to the company's policies.

 Most of the employees (30%) disagrees that Advises and suggestions are given to
the employees during the appraisal process.

 Most of the employees (37.5%) uninterestingly accept the appraisal feedback.

 Most of the employees (62.7%) feel that appraisal should be given by HOD.

 Most of the employees (52.5%) that they need to be assessed as once in a year.

 All most of the employees (95%) feels that the performance appraisal followed in
the organization makes the employees Motivated.

 Most of the employees (40%) think that attitude have impact on performance rating
in the Organization.

 Most of the employees (52.5%) do not agree that Performance is communicated

after assessment of the Performance.
58
 SUGGESTIONS
 Management must have free and effective communication policy to allow managers
to comment their views, expectations, creative ideas etc. It can motivate managers at
all level and can boost their confidence and trust in the organization.

 Execute periodic audits of job satisfaction, audit of training evaluation and

effectiveness.

 HR audit should be conducted with special reference to retention, attrition and

managerial satisfaction.

 Develop an effective training program and constantly update training strategies.

 There is a need to develop an effective retention policy to retain the competitive

employees.

 Same way there should be the working system where complacent managers would
be motivated to go to the next level of performance.

 For this there should be incentive for – ƒ Higher education-engineering and

management ƒ Six sigma and other such certification ƒ QC Certification ( Quality
control certification)

 Clearly define roles and responsibilities. Make sure your employees know what is
expected of them every day, what type of decisions they are allowed to make on
their own area.

 Provide adequate advancement opportunities and develop promotion strategies on

contribution level. Encourage learning with open mind

 Show your employees that you value them, reward individually and team.

 Provide the employees a stress free work environment

 Offer fair and competitive salaries and communicate to all. Revise salaries more
frequently or annually based on skill level, experience and achievements.

 Work culture and management style of immediate boss are clearly key factors that
should be paid attention to.
59
 CONCLUSION:
 Management must have free and effective communication policy to allow
managers to comment their views, expectations, creative ideas etc. It can
motivate managers at all level and can boost their confidence and trust in the
organization.

 2. Execute periodic audits of job satisfaction, audit of training evaluation and

effectiveness.

 3. HR audit should be conducted with special reference to retention, attrition

and managerial satisfaction.

 Develop an effective training program and constantly update training

strategies .

 There is a need to develop an effective retention policy to retain the

competitive employees.

 Same way there should be the working system where complacent managers
would be motivated to go to the next level of performance.

 For this there should be incentive for – ƒ Higher education-engineering and

management ƒ Six sigma and other such certification ƒ QC
Certification( Quality control certification)

 Clearly define roles and responsibilities. Make sure your employees know
what is expected of them every day, what type of decisions they are allowed
to make on their own area.

 Provide adequate advancement opportunities and develop promotion

strategies on contribution level. Encourage learning with open mind

 Show your employees that you value them , reward individually and team.

 Provide the employees a stress free work environment

60
BIBLIOGRAPHY:
61
 BIBLIOGRAPHY:
Books:
o Chhabra T.N., “Human Resources Management”. Dhanpat Ria & Co. Ltd. 2004-
Forth Edition, 223-227.
o Aswanthappa, K., “Human Resource and Personnel Management”. New Delhi, Tata
McGraw-Hill Pulishing Co. Ltd., 2003.
o Dessler Gary ; Human Resource Management ; VIII Edition ; Pearson Education.
o Kothari C.R., ‘Research Methodology ; Methods and Techniques’, New Delhi, New
Age International (P) Limited, Publishers, 2—4, PP.33-38.
o Rao Suba P. ; Essentials of Human Resource Management * Industrial Relations
(Text Cases * Games) : II Edition; Himalaya Publishing House.
o Tripathi P.C., Human Resource Development, 1999 Edition, Sultan Chan and Sons.
Edition.

Websites:

 www.managmentstudy
 www.scribd.com.//doc.com.
 www.yourarticle
 Https://wwwlinkdin.com.
 Https://www.trainingzone.com.
 Https://documents.gov.in.com.
 Https://www courshero com.
62
ANNEXURE
63
 QUESTIONNAIRE
Q.1 Is Performance Appraisal helps in the assessment of individual potential?

 Strongly Agree

 Agree

 Natural

 Disagree

 Strongly Disagree
Q.2 Performance Appraisal system followed in the organization is rational and fair?:

 Strongly Agree

 Agree

 Natural

 Disagree

 Strongly Disagree
Q.3 Job expectations are informed and the superiors set the tasks?

 Strongly Agree

 Agree

 Natural

 Disagree

 Strongly Disagree

Q.4 Performance Appraisal followed in the Organization helps to the Training and
development needs of employee?

 Strongly Agree

 Agree

 Natural

 Disagree

 Strongly Disagree
64
Q.5 The Performance appraisal in the organization helps to recognize the
competence and potential of an individual:

 Strongly Agree

 Agree

 Natural

 Disagree

 Strongly Disagree
Q.6 Employees are happy with the assessment of performance followed in the
organization?

 Strongly Agree

 Agree

 Natural

 Disagree

 Strongly Disagree

Q.7 Employees have been appraised fairly according to the company's policies?
 Strongly Agree

 Agree

 Natural

 Disagree

 Strongly Disagree
Q.8 Advises and suggestions are given to the employees during the appraisal process?

 Strongly Agree

 Agree

 Natural

 Disagree

 Strongly Disagree
65
Q.9 The employees accept the appraisal feed back as?

 Strongly Agree

 Agree

 Natural

 Disagree

 Strongly Disagree
Q.10 The appraiser of the company should be?

 Strongly Agree

 Agree

 Natural

 Disagree

 Strongly Disagree
Q.11 Employee need to be assessed as?

 Strongly Agree

 Agree

 Natural

 Disagree

 Strongly Disagree
Q.12 The performance appraisal followed in the organization makes the employees?

 Strongly Agree

 Agree

 Natural

 Disagree

 Strongly Disagree
66
Q.13 Types of errors / problems have impact on performance rating in
the Organization?

 Strongly Agree

 Agree

 Natural

 Disagree

 Strongly Disagree
Q. 14 Feedback on Performance is communicated after assessment of the Performance

 Yes

 No

Q.15 Employees are aware of 360-degree appraisal:

 Yes

 No
67