A

PROJECT REPORT ON
PERFORMANCE APPRAISAL
In
TRANS CAR

Submitted to the

SRM SCHOOL OF MANAGEMENT

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

By

LIPSHANJALI SAHU
3511210152
Under the guidance of

Mrs. S.SUJATHA, Asst. Professor

SRM SCHOOL OF MANAGEMENT

SRM UNIVERSITY
KATTANKULATHUR 603 203
MAY 2014
 
  
Confirmation Letter from the Company
 
 

 
LIPSHANJALI SAHU
3511210152
SRM School of Management
SRM University
SRM Nagar, Kattankulathur - 603 203,
Kancheepuram District, Tamil Nadu.

DECLARATION

I hereby declare that the project report entitled “Performance Appraisal of TRANS

CAR INDIA PVT. LTD” submitted to SRM School of Management in partial fulfillment for

the requirement of award of the Degree of Master of Business Administration, is a record of

the original research work done under the supervision and guidance of Mrs. S. SUJATHA, Asst.

Professor, SRM School of Management, SRM University, Kattankulathur and that it has not

formed the basis for the award of any Degree / Diploma / Fellowship of other similar title to any

candidate of any university.

Place: Kattankulathur
Date: Lipshanjali Sahu

 
SRM School of Management

SRM University

SRM Nagar, Kattankulathur - 603 203,

Kancheepuram District, Tamil Nadu.  
 

BONAFIDE CERTIFICATE

  It is  certified that this project report titled “Performance Appraisal in Trans Car” is

the Bonafide work of Ms. Lipshanjali Sahu, 3511210152 who carried out the research under

my supervision. Certified further, that to the best of my knowledge the work reported herein does

not from part of any other project report or dissertation on the basis of which a degree or award

was conferred on an earlier occasion on this or any other candidate.

Submitted for the viva-voce examination held on -----------------------

-------------------------------- ----------------------------

Mrs. S. Sujatha Dr. JAYSHREE SURESH

Asst. Professor (Dean, MBA)

(Project Guide)

------------------------------------

External Examiner

 
 TABLE OF CONTENTS

Chapter No Title Page No

ACKNOWLEDGEMENT 5
ABSTRACT 6

1 INTRODUCTION 7
1.1 INDUSTRY PROFILE 8
1.1.1 HISTORY 8
1.1.2 AUTOMOTIVE INDUSTRY 8
1.2 INTRODUCTION OF THE COMPANY 9
1.2.1 ORGANIZATION CHART 11
1.2.2 VARIOUS DEPARTMENTS 11

INTRODUCTION TO PERFORMANCE APPRAISAL

2 13
2.1.1IMPORTANCE AND PURPOSE
14
2.2 PERFORMANCE APPRAISAL STRUCTURE IN THE
16
ORGANIZATION
17
2.3 PERFORMANCE STANDARDS
2.4 PERFORMANCE MEASUREMENTS 19
2.5. METHODS FOR APPRAISING PERFORMANCE 23
2.6 OBJECTIVES OF PERFORMANCE APPRAISAL 25
2.7 SCOPE OF THE STUDY 25
2.8 LIMITATION OF STUDY 25

LITERATURE REVIEW
3 27

3.1 PERFORMANCE APPRAISAL 28

3.2 BASIC PURPOSE 29

3.3 BENEFITS OF PRODUCTIVE PERFORMANCE

APPRAISALS 29

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 3.4 PITFALLS TO AVOID 30
3.5 LEGAL IMPLICATIONS 30

RESEARCH METHODOLOGY
4 33
4.1 RESEARCH METHODOLOGY 34
4.2 RESEARCH DESIGN 34
4.3 SAMPLING DESIGN 35
4.3.1 POPULATION AND SAMPLE SIZE 35
4.3.2 DATA COLLECTIONS 35

4.4 STATISTICALTOOLS 36

DATA ANALYSIS AND INTERPRETATION

5 37

FINDINGS AND SUGGESTIONS

6 53
6.1 FINDINGS 54
6.2 SUGGESTIONS 56

CONCLUSION
7 57

REFERENCES / BIBLIOGRAPHY 59

APPENDIX 61

2 
 
 LIST OF TABLES 

Table No  Name of the Table  Page No 

5.1  GENDER WISE CLASSIFICATIONS OF 38

RESPONDENTS

5.2  AGE WISE CLASSIFICATION OF RESPONDENTS 39

EXPERIENCE WISE CLASSIFICATIONS OF
5.3  40
RESPONDENTS

5.4  EDUCATIONAL QUALIFICATION OF RESPONDENTS 41

5.5  FREQUENCY OF PERFORMANCE APPRAISAL 42

REASON FOR CONDUCTNG PEROFRMANCE
5.6  42
APPRAISAL

5.7  DURATION OF PERFORMANCE APPRAISAL 43

CONDUCTED

5.8  WHO CONDUCT PERFORMANCE APPRAISAL 44

5.9  EMPLOYEE PERFORMANCES DISCUSSED 45

5.10  PERFORMANCE APPRAISAL PROGRAMS RELATED 46

WITH ORGANIZATIONAL GOALS

5.11  INVOLVEMENT IN DESIGNING APPRAISAL SYSTEM 47

5.12  PERFORMANCE APPRAISAL RELEVANCE TO 47

EMPLOYEE JOB

5.13  OPINION AND SUGGESTIONS SHARED TO 48

MANAGERS

5.14  TRAINING OF FILL UP PERFORMANCE APPRAISAL 49

FORM

5.15  APPRAISER'S AWARENESS ON EMPLOYEE JOB 49

RESPONSIBLITIES AND DUTIES

3 
 
 5.16  INVOLVEMENT OF RATER 50 

5.17  PROPER EXECUTION OF PERFORMANCE 51 

APPRAISAL

5.18  UPDATING OF PERFORMANCE APPRAISAL 52 

   

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 ACKNOWLEDGEMENT

  My project work with TRANS CAR INDIA PVT LTD has been a great learning
opportunity for my career. I was exposed to the real market ambience and obtained some
practical experience during my project training.

In the process of completing my project report, I avail this golden opportunity of

expressing to the management of TRANS CAR INDIA PVT LTD which has given me the
opportunity to complete my training in their prestigious organization. I would also like to thank
Mr. A. YOGAGANAPATHY (Deputy HR Manager) for sharing valuable information without
which this project report would not have been as informative as it is now. Lastly, I am obliged to
my friends who encouraged me and extended their cooperation from time to perform the training
to the best of my capabilities.

Not the least, I would like to express my deep gratitude to Mr. Rajan Daniel, Assistant
Professor, SRM School of Management my project guide Mrs. S. Sujatha, Assistant
Professor, SRM School of Management and Dr. Jayshree Suresh, Dean, SRM School of
Management.

I would like to thank all my family members, friends and all those persons whom I met in
this time period for all feedback and help they provided me in fulfillment of this project report.

Thanking you all!!

Lipshanjali Sahu

5 
 
 ABSTRACT

Appraisal is a continuous process and done annually as a formal exercise before completion of
the financial year. Appraisal has tremendous motivational impact on people through meaningful
feedback and is powerful tool for recognition. This project explains Performance Appraisal
system and tries to find out how efficiently Performance Appraisal is conducted. And if
Performance Appraisal doesn’t meet its objectives then, what are the factors causing failure.

6 
 
 CHAPTER 1
INTRODUCTION

7 
 
1.1 INDUSTRY PROFILE:

1.1.1 HISTORY
The first practical automobile with a Petrol engine was built by Karl Benzin, 1885 in Mannheim,
Germany. Benz was granted a patent for his automobile on 29 January 1886, and began the first
production of automobiles in 1888 after Bertha Benz his wife had proved with the first long-
distance trip in August 1888 from Mannheim to Pforzheim and back that the horseless coach was
absolutely suitable for daily use. Since 2008 a Bertha Benz Memorial Route commemorates this
event.

Soon after, Gottlieb Daimler and Wilhelm Mabuchi in Stuttgart in 1889 designed a vehicle from
scratch to be an automobile, rather than a horse-drawn carriage fitted with an engine. They are
also usually credited as inventors of the first motorcycle in 1886, but Enrico Bernardio of the
University of Padua in 1882, patented a 0.024 horsepower one-cylinder petrol motor fitting into
his son’s tricycle making it at least a candidate for the first automobile, and first motorcycle.
Bernardi enlarged the tricycle in 1892 to carry two adults.

1.1.2 AUTOMOTIVE INDUSTRY

The automotive industry designs, develops, manufacturers, markets, and sells the world’s motor
vehicles. In 2009, more than 88 million motor vehicles, including cars and commercial vehicles
were produced worldwide.

In 2009-2010, a total of 90 million new automobiles were sold worldwide: 24 million in Europe,
21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 14.4 million in Latin America, 6.4
million the Middle East and 7.4 million in Africa. The markets in North America and Japan were
stagnant, while those in South America and Asia grew strongly. Of the major markets, Russia,
Brazil, India and China saw the most rapid growth.

About 250 million vehicles are in the use in the United States. Around the world, there were
about 806 million cars and light trucks on the road in 2009: they burn over 260 billion gallons of

8 
 
gasoline and diesel fuel yearly. The numbers are increasing rapidly, especially in China and
India. In the opinion of some, urban transport systems based around the car have proved
unsustainable, consuming excessive energy, affecting the health of populations, and delivering a
declining level of service despite increasing investments. Many of these negative impacts fall
disproportionately on those social groups who are also least likely to own and drive cars. The
sustainable transport movement focuses on solutions to these problems.

In 2009, with rapidly rising oil prices, industries such as the automotive industry are
experiencing combination of pricing pressures from raw material costs and changes in consumer
buying habits. The industry is also facing increasing external competition from the public
transport sector, as consumers re-evaluate the private vehicle usage. Roughly half of the US’s
fifty one light vehicle plants are projected to permanently close in the coming years with the loss
of another 200,000 jobs in the sector, on top of the 560,000 jobs lost this decade. As a result, in
2010, China became the largest automobile markets in the world.

1.2 INTRODUCTION OF THE COMPANY

M/S Trans Car India Pvt. Ltd is a part of the Indian Multinational “The Buharia Group”
founded by the great visionary Mr.B.S.Abdur Rahman. We are a part of this conglomerate which
has diverse interests spanning construction, cables, fuel management, ecological protection,
information technology, marine exports, car dealerships, hospitality and more.

We M/S Trans Car India Pvt. Ltd, headed by Mr. Abdul Qadir A R Buhari, are the dealer
for Mercedes-Benz Vehicles, the future of automobiles, for an assigned territory of Greater
Chennai, its neighboring districts and Pondicherry. We joined hands in the business operation of
Mercedes-Benz in the year 1998, within a year of the commencement of their production of the
vehicles in our country. From then onwards we have grown in stature very consistently and have
shown a continuous improvement in terms of our business volumes, year after year.

By way of our relentless pursuit for perfection in our business practices we cater to the demand
of very elite and exclusive clientele of our state by selling and servicing the Mercedes-Benz
passenger vehicles. Our basic philosophy of “Utmost Customer Care” has made us as one of the

9 
 
few dealers who have been ranked within the top four, in the Customer Satisfaction Index study
conducted by the world’s most reputed automobile research specialists M/s J.D.Power
Associates. In January 2005 our dealership was awarded the coveted ISO 9001:2000 certification
by TUV SUD which has further augmented our best practices in the business process and has
improved the overall customer satisfaction.

Transcar has been striving hard to offer best after-sales services to our distinguished Mercedes-
Benz Customers in and around Chennai. Our workshop situated in Ambattur Industrial estate
started in the year 1998 is in the service of Mercedes-Benz Passenger vehicles exclusively.
Keeping in mind the growth of MB Passenger Vehicle population, our service facility was
expanded in the year 2006. A new workshop in an area of 1.2 acres was constructed with state-
of-the-art equipments and machineries, which has certainly improved the customer convenience
while they are getting their car serviced.

This new facility has an exclusive customer lounge, an open cafeteria, and a state-of-the-art
training centre, which has greatly improved the customer convenience. Our workshop is one of
the few Mercedes-Benz workshops, which has a certified body and paint facility.

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1.2.1 ORGANIZATION CHART

Sr. Management – Trans Car

1.2.2 FUNCTIONAL AREAS

HUMAN RESOURCE DEPARTMENT

This department serves as the bridge between the management and workforce. Various tasks like
filing of employee records, payroll distribution, tax filing, attendance, assigning loss of pay etc.
Facility department takes care of the plant maintenance. It includes infrastructure facility like
housekeeping, gardening, waste management and security etc.

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INFORMATION TECHNOLOGY DEPARTMENT
This department takes care of network and communication facility of company. It controls the
inflow and outflow of data from company and outside world through computers and internet
security.

SALES & DEPARTMENT

The Sales department serves as the face of the company for the customer. Various tasks like
arranging the test drive, negotiating for the purchase. In many cases, salespeople will also begin
the financing process by taking information for a credit application and then closing the deal.

AFTER SALES DEPARTMENT

Speaking of service, the service department--often referred to as fixed operations--is one of the
most important departments in the dealership. The service department consists of the technicians
who perform repairs, the service advisors who assist customers and sell maintenance packages,
and porters who prep just-sold vehicles for delivery. At some stores, porters also wash cars that
come in for repairs once the repair is done. And some dealerships employ drivers to pick up and
shuttle customers or to shuttle customer's cars to their homes after repairs are complete. On top
of that, some high-end dealers offer loaner cars and employees in the service department might
manage that program. Sometimes customer-service specialists fall under this umbrella.

12 
 
 CHAPTER 2
INTRODUCTION TO PERFORMANCE
APPRAISAL

13 
 
2.1 INTRODUCTION TO PERFORMANCE APPRAISAL

Once the employee has been selected, trained and motivated, he is then appraised

for his performance. Performance Appraisal is the step where the Management

finds out how effective it has been at hiring and placing employees. If any

problems are identified, steps are taken to communicate with the employee and

remedy them.

“Performance Appraisal is a process of evaluating an employee s performance

in terms of its requirements.”

Performance Appraisal can also be defined as the process of evaluating the

performance and qualifications of the employees in terms of the requirements of
the job for which he is employed, for purposes of administration including
placement, selection for promotions, providing financial rewards and other actions
which require differential treatment among the members of a group as
distinguished from actions affecting all members equally.

2.1.1 IMPORTANCE AND PURPOSE

Performance Appraisal has been considered as the most significant an

indispensable tool for an organization, for an organization, for the information it
provides is highly useful in making decisions regarding various personnel aspects
such as promotion and merit increases. Performance measures also link
information gathering and decision making processes which provide a basis for
judging the effectiveness of personnel sub-divisions such as recruiting, selection,
training and compensation. Accurate information plays a vital role in the

14 
 
organization as a whole. They help in finding out the weaknesses in the primary
areas.
Formal Performance Appraisal plans are designed to meet three needs, one of the
organization and the other two of the individual namely:

• They provide systematic judgments to back up salary increases, transfers,

demotions or terminations.
• They are the means of telling a subordinate how he is doing and suggesting
needed changes in his behavior, attitudes, skills or job knowledge. They let
him know where he stands with the Boss.
• Superior uses them as a base for coaching and counseling the individual.

On the basis of merit rating or appraisal procedures, the main objectives of

Employee Appraisal are:

• To enable an organization to maintain an inventory of the number and

quality of all managers and to identify and meet their training needs and
aspirations.
• To determine increment rewards and to provide reliable index for
promotions and transfers to positions of greater responsibility.
• To suggest ways of improving the employee s performance when he is not
found to be up to the mark during the review period.
• To identify training and development needs and to evaluate effectiveness of
training and development programmes.
• To plan career development, human resource planning based potentials.

15 
 
2.2 PERFORMANCE APPRAISAL STRUCTURE IN THE
ORGANIZATION

Summary of the Performance Analysis System

Setting performance standards, observing and providing feedback, and conducting

appraisals enables the Team Leader to achieve the best results through managing
employee performance.
To begin the process, the Team Leader and the employee collaborates on the
development of performance standards. The Team Leader then develops a
performance plan that directs the employee's efforts toward achieving specific
results, to support organizational growth as well as the employee's professional
growth. Discussion of goals and objectives throughout the year provides a
framework to ensure that employees achieve results through One on One and
mutual feedback. At the end of the rating period, the Team Leader appraises the
employee's performance against existing standards, and establishes new goals
together for the next rating period. As the immediate supervisor, the Team Leader
plays an important role; his closest interaction with the employee occurs at this
level. There are four key elements in the appraisal system: 1. Set objectives -
Decide what the Team Leader wants from the employees and agree these
objectives with them. 2. Manage performance - Give employees the tools,
resources and training they need to perform well. 3. Carry out the appraisal -
monitor and assess the employees' performance, discuss those assessments with
them and agree on future objectives. 4. Provide rewards/remedies - Consider pay
awards and/or promotion based on the appraisal and decide how to tackle poor
performance.

16 
 
2.3 PERFORMANCE STANDARDS

How does the Team Leader decide what's acceptable and what's unacceptable
performance? The answer to this question is the first step in establishing written
standards.
Performance expectations are the basis for appraising employee performance.
Written performance standards let the Team Leader to compare the employee's
performance with mutually understood expectations and minimize ambiguity in
providing feedback.
Having performance standards is not a new concept; standards exist whether or not
they are discussed or put in writing. When the Team Leader observes an
employee's performance, he usually makes a judgment about whether that
performance is acceptable. Standards identify a baseline for measuring
performance. From performance standards, the Team Leader can provide specific
feedback describing the gap between expected and actual performance.
Guiding Principles
Effective performance standards:

• Serve as an objective basis for communicating about performance.

• Enables the employee to differentiate between acceptable and unacceptable
results.
• Increase job satisfaction because employees know when tasks are performed
well.
• Inform new employees of your expectations about job performance.

17 
 
Key Responsibility Areas (KRA)

The Team Leaders in association with the Project Manager write performance
standards for each key area of responsibility on the employee's job description. The
employee actively participates in its development. Standards are usually
established when an assignment is made, and they are reviewed if the employee's
job description is updated. The discussions of standards include the criteria for
achieving satisfactory performance and the proof of performance (methods the
Team Leader will use to gather information about work performance).

Characteristics of Performance Standards

Standards describe the conditions that must exist before the performance can be
rated satisfactory. A performance standard should:

• Be realistic, in other words, attainable by any qualified, competent, and fully

trained person who has the authority and resources to achieve the desired
result
• Describe the conditions that exist when performance meets expectations
• Be expressed in terms of quantity, quality, time, cost, effect, manner of
performance, or method of doing
• Be measurable, with specified method(s) of gathering performance data and
measuring performance against standards

Expressing Standards
The terms for expressing performance standards are outlined below: Quantity:
Specifies how much work must be completed within a certain period of time.

18 
 
 • Quality: Describes how well the work must be accomplished. Specifies
accuracy, precision, appearance, or effectiveness.
• Timeliness: Answers the questions, by when? , How soon? , Or within what
period?
• Effective Use of Resources: Used when performance can be assessed in
terms of utilization of resources: money saved, waste reduced.
• Effects of Effort: Addresses the ultimate effect to be obtained; expands
statements of effectiveness by using phrases such as: so that, in order to, or
as shown by.
• Manner of Performance: Describes conditions in which an individual's
personal behavior has an effect on performance, e.g., assists other employees
in the work unit in accomplishing assignments.
• Method of Performing Assignments: Describes requirements; used when
only the officially prescribed policy, procedure, or rule for accomplishing
the work is acceptable.

2.4 PERFORMANCE MEASUREMENTS

Since one of the characteristics of a performance standard is that it can be
measured, the Team Leader identifies how and where evidence about the
employee's performance will be gathered. Specifying the performance
measurements when the responsibility is assigned will help the employee keep
track of his progress, as well as helping the Team Leader in the future performance
discussions.
There are many effective ways to monitor and verify performance, the most
common of which are:

19 
 
 • Direct observation
• Specific work results (tangible evidence that can be reviewed without the
employee being present)
• Reports and records, such as attendance, safety, inventory, financial records,
etc.
• Commendations or constructive or critical comments received about the
employee's work.

Observation and Feedback (One on One)

Once performance objectives and standards are established, the Team Leader
observes the employees' performance and provides feedback. The Team Leader has
a responsibility to recognize and reinforce strong performance by an employee,
and identify and encourage improvement where it is needed. The Team Leader
provides informal feedback almost every day. By observing and providing detailed
feedback, the Team Leader plays a critical role in the employee's continued success
and motivation to meet performance expectations.

One on One Sessions

One on One is a method of strengthening communication between the Team
Leader and the employee. It helps to shape performance and increase the likelihood
that the employee's results will meet expectations. One on One sessions provide the
Team Leader and the employee the opportunity to discuss her progress toward
meeting mutually established standards and goals. A One on One session focuses
on one or two aspects of performance, rather than the total review that takes place
in a performance evaluation.

20 
 
Guiding Principles
Effective One on One can:

• Strengthen communication between the Team Leader and the employee

• Help the employee attain performance objectives
• Increase employee motivation and commitment
• Maintain and increase the employee's self-esteem
• Provide support

Key Elements of One on One

To make One on One session effective, the Team Leader keeps the following key
elements of One on One in mind while conducting such a session:

• Observe the employee's work and solicit feedback from others.

• When performance is successful, take the time to understand why.
• Advise the employee ahead of time on issues to be discussed.
• Discuss alternative solutions.
• Agree on action to be taken.
• Schedule follow-up meeting(s) to measure results.
• Recognize successes and improvements.
• Document key elements of One on One session.

Questions to Consider during One on One

To provide effective feedback the Team Leader must understand the elements of
performance and analyze marginal performance. These questions are kept in mind:

21 
 
 • How is the employee expected to perform?
• Does the employee understand these expectations? If not, why not?
• Does the employee know what successful results look like? How does the
Team Leader know?
• Does the employee know the performance is marginal? How does the Team
Leader know?
• Are there obstacles beyond the employee's control? Can the Team Leader
remove them?
• Has the employee ever performed this task satisfactorily?
• Is the employee willing and able to learn?
• Does satisfactory performance result in excessive work being assigned?
• Does unsatisfactory performance result in positive consequences such as an
undesirable task being reassigned?

During the One on One Session

When the Team Leader conducts a One on One session to provide positive
feedback to the employee, he keeps the following points in mind:

• Describe the positive performance result or work habit using specific details.
• Ask the employee's opinion of the same product or behavior.
• Ask the employee to identify elements that contributed to success (adequate
time or resources, support from management or other employees, the
employee's talent and interest in the project).
• Discuss ways in which the Team Leader and the employee can support
continued positive results.

22 
 
 • Reinforce for the employee the value of the work and how it fits in with the
goals of the work unit or department.
• Show your appreciation of the positive results and your confidence that the
employee will continue to perform satisfactorily.

Follow-Up Discussion
During a follow-up discussion, the following steps are followed:

• Review the previous discussion(s).

• Discuss insufficient improvement and ask for reasons why.
• Indicate consequence of continued lack of improvement.
• Agree on action to be taken and set a follow-up date, if appropriate.
• Convey confidence in the employee. Document the discussion.

2.5 METHODS FOR APPRAISING PERFORMANCE

Performance actually can be appraised by a wide variety of methods and

techniques. The most commonly used performance appraisal methods can be
distinguished into three major categories: comparative appraisals, behavioral
appraisals, and output-based appraisals.

1. Comparative Appraisal
Managers directly compare the performance of their subordinates against one
another in comparative appraisals. For example, a data entry operator's
performance would be compared with that of other data-entry operators by the
computing supervisor. Comparative techniques include ranking, paired
comparisons, and forced distribution.

23 
 
2. Behavioral Appraisals
In contrast with comparative appraisals, behavioral appraisals allow supervisors to
evaluate each person’s performance independent of other employees but relative to
important job- related behaviors, which when exhibited can lead to job success.

3. Essays: The essay (free-form) appraisal method requires the manager to write a
short essay describing each employee's performance during the rating period. The
rater usually is given a few general headings under which to categorize comments.
The intent is to allow the rater more flexibility than other methods do. As a result,
the method is often combined with other methods.

4. 360 Degree Appraisal system: In human resources or industrial psychology,

360-degree feedback, also known as multi-rater feedback, multi source feedback,
or multi source assessment, is feedback that comes from members of an employee's
immediate work circle. Most often, 360-degree feedback will include direct
feedback from an employee's subordinates, peers, and supervisor(s), as well as a
self-evaluation. It can also include, in some cases, feedback from external sources,
such as customers and suppliers or other interested stakeholders. It may be
contrasted with "upward feedback," where managers are given feedback only by
their direct reports, or a "traditional performance appraisal," where the employees
are most often reviewed only by their managers.

5. Output-based Appraisals

While the methods described above focus on job behaviors or processes, output-
based appraisals focus on job products as the primary criteria. The most commonly
used output

24 
 
2.6 OBJECTIVES OF PERFORMANCE APPRAISAL

PRIMARY OBJECTIVES
• To judge the gap between employer actual performance and desired performance.

SECONDARY OBJECTIVES
• To study the purpose of performance appraisal conducted at Trans Car.
• To understand the opinion of employees towards performance appraisal at Trans
Car.
• To identity the effect of performance appraisal on individual and organizational
development.
• To understand the existing relationship between management and employees.
• To identify ways to improve the existing performance appraisal system.

2.7 SCOPE OF THE STUDY

• The management can identify the employee’s opinion of the existing performance
appraisal system.
• The study can be used to make the present appraisal system more effective and
satisfied among employees.
• It could be used to identify training and development needs for the individual and
the organization as a whole.

2.8 LIMITATION OF STUDY

It is quite impossible to cope up all the activities during internship period and for that reason
limitations prevail while conducting the survey. Basic limitations faced while preparing the study
were:

25 
 
• The Company’s policy of not disclosing some data and information for obvious reasons, which
would have been very much useful for the report.

• Some of the questionnaires were incomplete.

• Few employees sometime felt disturbed, as they were busy in their job.

• Sometimes it was difficult to collect data from their files, because important files are kept in
volt for safety.

• It is difficult to make information based a rich report in short period of time.

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 CHAPTER 3
LITERATURE REVIEW

27 
 
 LITERATURE REVIEW

3.1 PERFORMANCE APPRAISAL

Performance appraisal is one of the most important requirements for all successful business and
human resource policy (Kressler, 2003). Rewarding and promoting effective performance in
organization, as well as identifying ineffective performers for resource management (Pulakos,
2003). The ability to conduct performance appraisal relies on the ability to assess an employee's
performance in a fair and accurate manner. Evaluating employee performance is a difficult task.
Once the supervisor understands the nature of the job and the source of information, the
information needs to be collected in a systematic way, provided as feedback, and integrated into
the organization's performance management processor use in making compensation, job
placement and training decisions and assignment (London, 2003).

Performance evaluations have been conducted since the times of Aristotle (Landy, Zedeck,
Cleveland, 1983). The earliest formal employee performance evaluation program is thought to
have originated in the United States military establishment shortly after the birth of the republic
(Lopez,1968). The measurement of an employee's performance allows for rational administrative
decisions at the individual employee level. It also provides for the raw data for the evaluation of
the effectiveness of such personnel-system components and processes as recruiting policies,
training programs, selection rules, promotional strategies, and reward allocations (Landy,
Zedeck, Cleveland, 1983).In addition, it provides the foundation for behaviorally based
employee counseling. In the counseling setting, performance information provides the vehicle
for increasing satisfaction, commitment, and motivation of the employee. Performance
measurement allows the organization to tell the employee something about their rates of growth,
their competencies, and their potentials.

There is little disagreement that if well done, performance measurements and feedback can play
a valuable role in effecting the organization (Landy, Zedeck, Cleveland, 1983).

28 
 
3.2 BASIC PURPOSE

Performance appraisals should focus on three objectives: performance, not personalities; valid
concrete, relevant issues, rather that subjective emotions and feelings; reaching, agreement on
what the employee is going to improve in his performance and what you are going to do. Both
the supervisor and employee should recognize that a strong relationship exists between training
and performance evaluation. Each employee should be allowed to participate in periodic sessions
to review performance and clarify expectations. Both the supervisor and the employee should
recognize these sessions as constructive occasions for two-way should include opportunities for
self-assessment as well as supervisor feedback.

The supervisor should keep in contact with the employee to assure the training experiences are
producing desired impact. A portion of the process should be devoted to an examination of
potential opportunities to pursue advancement of acceptance of more complex responsibilities.
The employee development goals should be recognized as legitimate, and plans should be made
to reach the goals through development is not only a supervisor’s professional responsibility, but
it also motivates as employee to pursue additional commitments. In addition, the pursuit of these
objectives will also improve the prospect that current employees will be qualified as candidates
when positions become available. This approach not only motivates current performance but also
assists the recruitment of current employees as qualified candidates for future positions

3.3 BENEFITS OF PRODUCTIVE PERFORMANCE APPRAISALS

Employee learns of his or her own strengths in addition to weaknesses. New goal and objectives
are agreed upon. Employee is an active participant in the evaluation process. The relationship
between supervisor and employees is taken to an adult-to-adult level. Work teams may be
restructured for maximum efficiency. Employee renews his or her interest in being a part of the
organization now and in the future. Training needs are identified. Time is devoted to discussing
quality of work without regard to money issues. Supervisor becomes more comfortable in
reviewing the performance of employees. Employees feel that they are taken seriously as
individuals and that the supervisor is truly concerned about their needs and goals.

29 
 
3.4 PITFALLS TO AVOID

When conducting performance appraisals on any level, it is important to keep in mind the
common pitfalls to avoid. These pitfalls may include but are not limited to:

1. Bias/prejudice-Race, religion, education, family background, age, and/or sex.

2. Trait assessment-Too much attention to characteristics that have nothing to do with the job is
difficult to measure.

3. Over-emphasis on favorable or unfavorable performance of one or two tasks which could lead
to an unbalanced evaluation of the overall contribution.

4. Relying on impressions rather than facts.

5. Holding the employee responsible for the impact of factors beyond his/her control.

6. Failure to provide each employee with an opportunity for advance preparation.

3.5 LEGAL IMPLICATIONS

Any performance appraisal system used to make employment decisions about a member of a
protected class (i.e. Based on age, race, religion, gender or national origin) must be a valid
system (an accurate measure of performance associated with job requirements. Other it can be
challenged in the courts based on Title VII of the 1964, Civil Rights Act, the Civil Rights Act of
1991 and the Age Discrimination in Employment Act of 1975 (London, 2003).

Effectiveness of performance Appraisal system it is argued is a function of applying the right

system in right context. –By Klein; the Art of Appraisal.

Performance appraisal systems are "homework" that provides the information you need in order
to make appropriate administrative recommendations, hold meaningful feedback discussions
with staff members, and determined were performance improvement is required. - By Marion E.
Haynes; Managing Performance.

30 
 
The effectiveness of an Appraisal System is determined by the quality of communication
between the manager and staff member, not by multiple raters, complex scoring methods, or the
form used.-By John D. Drake; Performance Appraisal.

One More Time Performance appraisal can actually be counter-productive for employees who
are in the greatest need of training and further development.-By Victor Buzzottan; improving
your Performance Appraisal.

One of the measure reason Performance management and Performance Appraisal fail is that too
much time is spent on Appraising performance using vague criteria and not enough time and
effort put into helping employee understands what his job is about, and the goals and objectives
he/she is expected to achieve to be successful. Learn to do goals setting painlessly. – By Robert
Dacal; Learn to plan Performance and set employee goals.

Maximizing and measuring our own performance and that of the people who work for us is a
basic tenant of the work environment. Always use of simple too land approach that can be
beneficial in achievement performance plan.-By Zack Mansdorf; Performance Management;
Identifying work goals.
Most managers and supervisors today are attempting to quantify their departmental objective and
pass them on their employees through performance standards. Despite the simplicity of this
management-by-objective approach, deadlines are missed, quality is relatively poor and
productive is low. The reasons for this may not be the fault of the employees carrying out the
work. The cause is most often associated with the immediate supervisor's lack of attention to the
realities surrounding objectives and performance standards require a careful analysis of all the
relevant issues. –By Gregory Isaac; Plan for performance.

Organizations striving to develop an open and participative approach have begun to give
employees the chance to say what they think of their managers. Such appraisals can only work in
a culture where mangers are willing to listen and learn and affect any necessary changes as a
result. - By Madhukar Shukla; Upward Appraisal and Organizational culture.

31 
 
A tone stage performance appraisal relied mainly on personality characteristics.

Subordinates were being appraised by their superior on the extent to which they exhibited
characteristic like, tact, willingness, enthusiasm, and maturity. Mangers were being put into
position of psychologists and required to make subjective ratings without any point of reference
expect their own opinion. –By Bob Nelson; Performance Assessment.

Performance appraisal is a part of overall performance management system of an organization.

Through the appraisal process, gap between an individual's agreed performance standard his
actual performance is assessed and appropriate strategies are drawn for subsequent performance
cycle. This is a useful performance enhancement exercise. In many

Organizations, PMS are linked with other systems like salary &Benefits, Training &
Development and Succession Planning. - By H. K. Shukla; Striates Human Resource
Management.

32 
 
 CHAPTER 4

RESEARCH METHODOLOGY

33 
 
4.1 RESEARCH METHODOLOGY

Research in common parlance refers to search for knowledge. Redman and Mory define research
as a “Systematized effort to gain new knowledge. Research is an academic activity and such the
term should be used in technical sense. According to Clifford Woody,

Research comprises defining and redefining problem, formulating hypothesis or suggested

solutions; collecting, organizing and evaluating data; making deductions and research
conclusions; and at last carefully testing the conclusions to determine whether they fit the
formulating hypothesis.

Research is thus an original contribution to the existing stock of knowledge making for its
advertisement. It is pursuit of truth with the help of study, observation, comparison and
experiment. In short the search for knowledge through objective and systematic method of
finding solution to problem is research.

4.2 RESEARCH DESIGN

A Research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the Research purpose with economy in procedure. In
fact the Research design is the conceptual structure within which Research is conducted: it
constitutes the blueprint for the collection measurement and analysis of data.

It must be able to define clearly what they want to measure and must find adequate methods for
measuring it along with a clear cut definition of population wants to study. Since the aim is to
obtain complete and accurate information in these studies, the procedure to be used must be
carefully planned. The research design must make enough provision for protection against bias
and must maximize reliability with due concern for the economical completion of the search
study.
Descriptive research is adopted for this study. It includes surveys and fact finding enquires of

34 
 
different kinds. The major purpose of descriptive research is description of the state affairs as it
exists at present. The main characteristic of this method is that the 20 researcher has no control
over the variables. He can only report what has happened or what is happened.

4.3 SAMPLING DESIGN

A sample design is a definite plan for obtaining a sample from the sampling frame, it refers to
the technique or procedure the researcher would adopt in selecting some sampling units from
which interferences about the population is drawn. Sampling type used is Simple Random
sampling technique.

4.3.1 POPULATION AND SAMPLE SIZE

A decision has to be taken concerning sampling unit before selecting sample. The population for
this study includes the employees from the Showroom of Trans Car. The total population of
Trans Car group is 80 employees were undertaken for the study.

4.3.2 DATA COLLECTIONS

For achieving the specific objectives of this study, data were gathered from both primary and
secondary sources.

Primary Sources

• Direct conversation with the respective officers of the Departments.

• Face to face conversation with the employees.

• Employee’s opinion collected through Questions.

• Observation of HR activities.
35 
 
Secondary Sources:
• Various records of the Company.

• Different Types of system information.

• Website of BMW Group.

• Different newsletters.

• Annual Performance Appraisal Form of company.

• Personal files of employees.

4.4 STATISTICALTOOLS

¾ Percentage analysis

4.4.1 PERCENTAGE ANALYSIS

It refers to a special kind of ratio. Percentage is used in making comparison between two or more
series of data; percentages are used to determine relationship between the series if data finding
the relative differences becomes easier through percentage.

It is expressed as,

Percentage (%) = No. of respondents x 100

Total no. of respondents

36 
 
 CHAPTER 5
DATA ANALYSIS AND INTERPRETATION

37 
 
DATA ANALYSIS & INTERPRETATION

5.1 GENDER WISE CLASSIFICATION OF RESPONDENTS

TABLE 5.1 GENDER WISE CLASSIFICATIONS OF RESPONDENTS

Gender No. of Respondents Percentage

Male 64 80
Female 16 20
Total 80 100

FIGURE 5.1 GENDER WISE CLASSIFICATIONS OF RESPONDENTS

20%

Male
Female

80%

INTERPRETATION:

From the above table, it can be inferred that 80% of the respondents are Male and
20% are Female.

38 
 
5.2 AGE
E WISE CLASSIFIICATION PONDENTS
N OF RESP

E 5.2 AGE
TABLE E WISE CL
LASSIFIC
CATION OF
O RESPONDENT
TS

Age No. of Respondeents Percen

ntage (%)
20-30 Agee 28 35
31-40 Agee 25 31.25
41-50 Agee 17 21.25
51-60 Agee 10 1
12.5
Total 80 1
100

RE 5.2 AG
FIGUR GE WISE CLASSIFI
C ICATION
N OF RESP
PONDEN
NTS

35
35 31.2
25

30
25 21
1.25

20
12.5
15
10
5
0
20‐30 Age 31‐40 Agge 41‐50 A
Age 51‐60
0 Age

Percentage

INTERPRETAT
R TION:

From thhe above taable it can be inferreed that 35%

% of the reespondentss are in thee age
of 20-300 age. 31.2
25% of thee respondeents are 31-40 age.211.25% of thhe responddents
are 31-440 age and
d 12.5% of the responndents are 31-40
3 age.

39 
 
5.3 EXPERIENCE WISE CLASSIFICATION OF RESPONDENTS

TABLE 5.3 EXPERIENCE WISE CLASSIFICATIONS OF RESPONDENTS

Experience No. of Respondents Percentage

Below 5 years 28 35
6-10 Years 34 42.5
11-15 Years 18 22.5
Above 15 Years 0 0
Total 80 100

FIGURE 5.3 EXPERIENCE WISE CLASSIFICATION OF RESPONDENTS

Percentage (%)
42.5

35

22.5

<5 years 6‐10 Years 11‐15 Years > 15 Years

INTERPRETATION:

From the above table it can be inferred that 35% of the respondents are having less
that 5 Years of experience. 42.5% of the respondents are having 6-10 Years of
experience. 22.5% of the respondents are having 11-15 Years of experience.

40 
 
5.4 EDUCATIONAL QUALIFICATION OF RESPONDENTS

TABLE 5.4 EDUCATIONAL QUALIFICATION OF RESPONDENTS

Educational No. of Respondents Percentage (%)

Qualification
UG Degree 43 53.75
PG Degree 19 23.75
Engineering 10 12.5
Other ITI 8 10
Total 80 100

FIGURE 5.4 EDUCATIONAL QUALIFICATIONS OF RESPONDENTS

UG Degree PG Degree Engineering ITI

10%

12%

54%
24%

INTERPRETATION:

From the above table it can be inferred that 53.75% of the respondents are UG
holders,10% of the respondents are some other (ITI), 23.75% of the respondents
are PG holders and 12.5% of the respondents are engineering graduates.

41 
 
5.5 FREQUENCY OF PERFORMANCE APPRAISAL

TABLE 5.5 FREQUENCY OF PERFORMANCE APPRAISAL

Performance Appraisal No. of Respondents Percentage (%)

Once a Year 80 100
Twice a Year 0 0
No Specific Time 0 0
Total 80 100

INTERPRETATION:

From the above table it can be inferred that 100% of the respondents Agree that
Performance Appraisal is conducted once a year.

5.6 REASON FOR CONDUCTNG PEROFRMANCE APPRAISAL

TABLE 5.6 REASON FOR CONDUCTNG PEROFRMANCE APPRAISAL

Performance Appraisal No. of Respondents Percentage (%)

Conducting
To identify motivating 0 0
methods
To identify monetary 0 0
benefits
Identifying barriers of 0 0
performance
All of the above 100 100
Total 100 100

INTERPRETATION:

From the above table it can be inferred that 100% of the respondents agree that the
reason for conducting Performance Appraisal includes all factors such as to
identify motivating methods, to decide monetary benefits and identify barriers for
performance.

42 
 
5.7 DUR
RATION OF PERF
FORMAN
NCE APPR
RAISAL CONDUCT
TED

E 5.7 DUR
TABLE RATION OF PERFO
ORMANC
CE APPRA
AISAL CO
ONDUCTED

Wheen perform mance No. of Respondeents Percen

ntage (%)
Apprraisal condducted
Durinng workingg Hours 67 833.75
During non-wo orking 13 166.25
hours
Total 80 1
100

FIGUR
RE 5.7 DUR
RATION OF PERF
FORMAN
NCE APPR
RAISAL
CONDUUCTED

When
W Perforrmance Ap
ppraisal Co
onducted

90
80
70
60
50
40
30
20
10
0
During W
Work Hours During N
Non‐Working 
H
Hours
Percentage (%
%) 8
83.75 16.25

RPRETAT
INTER TION:

From the
t above table it can be inferred
i thhat 83.75% of thee respondeent’s
perform
mance appraisal is conductedd during working
w h
hours andd 16.25 % of
Respondents Perfo
formance Appraisal
A iss conducted during non
n workinng hours.

43 
 
5.8 WH
HO COND
DUCT PER
RFORMA
ANCE APP
PRAISAL

TABLE
E 5.8 WHO
O CONDU
UCT PERF
FORMAN
NCE APPRAISAL

Who Condu
W ucts No. of Respondeents Percentage
n (%)
Perforrmance Apppraisal
Superior 68 85
Peers 12 15
Everyonee 0 0
Outsider 0 0
Total 80 1
100

FIGUR
RE 5.8 WH
HO COND
DUCT PER
RFORMA
ANCE APP
PRAISAL
L

W
Who Con
nducts P..A

90
80
70
60
50
40
30
20
10
0
Superior Peerrs Eveeryone Outsider
Percentage (%) 85 15 0 0

RPRETAT
INTER TION:

From thhe above taable it cann be inferreed that 85% of the reespondent’’s performance
appraisaal is condu
ucted by Suuperiors annd 15% off the Respoondents P.A A is conduucted
by Peerrs.

44 
 
5.9 EM
MPLOYEE
E PERFOR
RMANCE
ES DISCUS
SSED

TABLE
E 5.9 EMP
PLOYEE PERFORM
MANCES
S DISCUSSED

Meetiings of Em
mployee No. of Respondeents Percentage
c
P
Performan nce
Nil 4 5
Once 76 95
Twice 0 0
Thrice 0 0
Total 80 1
100

FIGUR
RE 5.9 EM
MPLOYEE
E PERFOR
RMANCE
ES DISCUSSED

Meetings of Em
mployee Perrformance

100
90
80
70
60
50
40
30
20
10
0
Nil On
nce Twice Thrice
P
Percentage (%) 5 9
95 0 0

RPRETAT
INTER TION:

From thhe above taable, it can be inferreed that for 95%

9 of thee respondents meetinng on
perform
mance is coonducting once
o a yearr and 5% of o the respoondents meeting
m is never
been disscussed.

45 
 
5.10 PERFORMANCE APPRAISAL PROGRAMS RELATED WITH
ORGANIZATIONAL GOALS

TABLE 5.10 PERFORMANCE APPRAISAL PROGRAMS RELATED

WITH ORGANIZATIONAL GOALS

Goals No. of Respondents Percentage (%)

To a high extent 10 12.5
To some extent 60 75
To a low extent 10 12.5
Total 80 100

FIGURE 5.10 PERFORMANCE APPRAISAL PROGRAMS RELATED

WITH ORGANIZATIONAL GOALS

Relate to Organizational Goals
80
70
60
50
40
Percentage (%)
30
20
10
0
To a high Extent To some Extent To a Low Extent

INTERPRETATION:

From the above table, it can be inferred that 75% of the respondents feel that
performance appraisal relates to some extent to organization goals, 12.5 % feel to a
low extent and 12.5% feel to a high extent it relates.

46 
 
5.11 1NVOLVEMENT IN DESIGNING APPRAISAL SYSTEM

TABLE 5.11 INVOLVEMENT IN DESIGNING APPRAISAL SYSTEM

Opinion No. Of Respondents Percentage (%)

Always 0 0
Sometime 0 0
Never 80 100
Total 80 100

INTERPRETATION:

From the above table, it can be inferred that 100% of the respondents say they are
never involved in designing the appraisal system.

5.12 PERFORMANCE APPRAISAL RELEVANCE TO EMPLOYEE JOB

TABLE 5.12 PERFORMANCE APPRAISAL RELEVANCE TO

EMPLOYEE JOB

Relevance No. of Respondents Percentage (%)

Highly relevant 66 82.5
Relevant 14 17.5
No idea 0 0
Irrelevant 0 0
Highly Irrelevant 0 0
Total 80 100

FIGURE 5.12 PERFORMANCE APPRAISAL RELEVANCE TO

EMPLOYEE JOB

47 
 
 90
80
70
60
50
40
Percentage (%)
30
20
10
0
Highly Relevant Relevant No Idea Irrelevant Highly 
Irrelevant

INTERPRETATION:

From the above table, it can be inferred that 82.5% of the respondents feel that
performance appraisal is highly relevant to employee job and 17.5% feel it is
relevant.

5.13 OPINION AND SUGGESTIONS SHARED TO MANAGERS

TABLE 5.13 OPINION AND SUGGESTIONS SHARED TO MANAGERS

Opinion and Suggestions No. of Respondents Percentage (%)

Mostly 100 100
Rarely 0 0
Never 0 0
Total 100 100

INTERPRETATION:
From the above table it can be inferred that 100% of the respondents mostly share
their opinion and suggestions to their managers.

48 
 
5.14 TRAINING OF FILL UP PERFORMANCE APPRAISAL FORM

TABLE 5.14 TRAINING OF FILL UP PERFORMANCE APPRAISAL

FORM

Forms No. of Respondents Percentage (%)

Yes 100 100
No 0 0
Total 100 100

INTERPRETATION:
 From the above table, it can be inferred that 100% of the respondents are given
training to fill the appraisal form.

5.15 APPRAISER'S AWARENESS ON EMPLOYEE JOB

RESPONSIBLITIES AND DUTIES

TABLE 5.15 APPRAISER'S AWARENESS ON EMPLOYEE JOB

RESPONSIBLITIES AND DUTIES
Aware No. of Respondents Percentage (%)
Completely Aware 0 0
Aware to an extent 0 0
Not aware 100 100
Total 100 100

INTERPRETATION:
 From the above table, it can be inferred that 100% of the respondents feel that the
appraiser is not aware of their job responsibilities and duties.

49 
 
5.16 IN
NVOLVEM
MENT OF
F RATER

TABLE 5.16 INV

VOLVEM
MENT OF RATER

Involvement
e No. of Reespondentss Peercentage (%)
Highly involved 24 300
Less invvolved 30 377.5
Not involved 26 322.5
Total 80 1000

FIGUR
RE 5.16 IN
NVOLVEM
MENT OF
F RATER

37
7.5
40
0 32.5
35
5 30

30
0
25
5
20
0
15
5
10
0
5
0
Highly iinvolved Less involvved Not involved

Percentage (%)
   

INTERPRETAT
R TION:
 From thhe above taable, it cann be inferreed that 37.55% of the respondent
r ts feel the rater
is less involved,
i 30%
3 of thee respondeents feel thhey are higghly involvved and 322.5%
of the reespondentss are not innvolved.

50 
 
5.17 PROPER EXECUTION OF PERFORMANCE APPRAISAL

TABLE 5.17 PROPER EXECUTION OF PERFORMANCE APPRAISAL

Properly executed in No. of Respondents Percentage (%)

your organization
Yes 58 72.5
No 22 27.5
Total 80 100

FIGURE 5.17 PROPER EXECUTION OF PERFORMANCE APPRAISAL

28%

Yes
No

72%

INTERPRETATION:
 From the above table, it can be inferred that 72.5% of the respondents feel
performance appraisal is properly executed while 27.5% feel it is not properly
executed.

51 
 
5.18 UP
PDATING
G OF PER
RFORMAN
NCE APPR
RAISAL

E 5.18 UPD
TABLE DATING OF PERF
FORMANCE APPRAISAL

Reviewwed and Updated

p No. of Respondents
e s Peercentage (%)
Frequenntly 36 455
Occasioonally 44 555
Never 0 0
Total 80 1000

FIGUR
RE 5.18 UP
PDATING
G OF PER
RFORMAN
NCE APPRAISAL

Reviiewed an
nd Updaated

60
0
50
0
40
0
30
0
20
0
10
0
0
Frequeently Occasionaly Neveer
Percentage (%
%) 5
45 55 0

RPRETAT
INTER TION:

From thhe above table, it can

c be infe ferred that 55% of the
t responndents feell the
perform
mance appraisal is revviewed occcasionally while
w 45%
% of responndents feel they
are reviewed frequ
uently.

52 
 
 CHAPTER 6
FINDINGS AND SUGGESTIONS

53 
 
6.1 FINDINGS

1. Majority (80%) of respondents are male.

2. Most of the respondents (31%) belong to the age group of 31 to 40.
3. 43% of the respondents have above 6 to10years of work experience.
4. Majority (54%) of the respondents are under graduates.
5. All of the respondents have under gone performance appraisal program once in a
year.

6. 100% of the employees interpret the reason for conducting performance

appraisal includes all the factors such as to identify motivating methods, to decide
monetary benefits and identify barriers for performance.
7. For 84% of the respondents performance appraisal was conducted during
working hours.

8. For 68% of the respondents the performance appraisal is conducted by

Superiors.

9. Once in a year the meeting is scheduled for all employees to discuss their
performance.

10. 75% of the respondents feel that performance appraisal is related to

organizational goals to some extent.
11. All of the respondents infer that they are never involved in designing the
performance appraisal system.
12. 83% of the respondents feel that the performance appraisal system is developed
highly relevant to the employee’s job.
13. All respondents mostly share their opinion and suggestions freely during the

54 
 
performance appraisal.
14. All respondents have got the training to fill up the performance appraisal
forms.
15. All of the respondents feel that the appraiser is not aware of the jobs and duties
of the each and every employee.
16. Most (38%) of the respondents feel that the raters are less involved while
appraising employees.

17. Most (73%) of the respondents says the Performance Appraisal is properly
executed in the organization.
18. Majority (55%) of the respondents feel that performance appraisal system is
reviewed and updated occasionally.

55 
 
6.2 SUGGESTIONS

1. Objective of conducting the performance appraisal could be discussed and

doubts can be clarified.

2. Performance appraisal could be updated regularly to match individual and

organizational goals.

3. Suggestion could be obtained from employees regarding framing the

performance appraisal system.

4. The appraiser must be familiarized with the employee's job responsibilities and
duties before conducting performance appraisal.

5. Feedback on performance could be discussed through formal or informal

meetings.

6. Appropriate and experienced appraiser can be appointed for effective

performance appraisal results.

7. Performance appraisal can be developed so as to identify the hidden talent and

skills of employees.

8. Appraisal feedback is very important in any performance appraisal program. It

could be carefully communicated by making high performers increase their target
and low performers to build up their confidence.

9. The Performance Evaluation Process should start before one month, it will help
in proper analyzing of the employees performance.

56 
 
 CHAPTER 7

CONCLUSION

57 
 
7. CONCLUSION

Performance appraisal may be understood as the assessment of an individual's

performance in a systematic way. The performance being measured against such
factors as job knowledge, quality and quantity of output, initiative, leadership
abilities, supervision, dependability, co-operation, judgment, versatility, health and
the like. It also helps in developing strength and rectifies weakness of the
employees.

Trans Car have been conducting performance appraisal from the past One year.
From the study it has been identified that the performance appraisal is able to
identify employees' potential and find the motivating factors of employees. The
major drawback is in terms of the appraiser and his knowledge regarding
employee’s job responsibilities and duties.
Trans Car has been running successfully for past 17 years and has created a good
name among its customers and society. People having poor background are given
training and provided with jobs. Performance appraisal can be conducted more
effectively by using the right tools and properly reviewing and updating the
performance appraisal program.
Suggestion from employees and experienced personnel can further enhance and
make the performance appraisal an ideal evaluation system.

58 
 
 BIBLOGRAPHY

59 
 
 BIBLOGRAPHY

BOOKS

Human Resource Management. By S. Seetharaman & B.Venkateswara Prasad,

Scitech Publication, 2007.
Kothari, C.R., Research Methodology- Methods & Techniques, New Delhi, New
Age international(P)Ltd.,Publishers,SecondEdition,2004.

Performance Management, Concepts, Practices and Strategies for Organization

success by S.K.Bhatia, Deep & Deep Publications Pvt. Ltd, 2008.

Statistical Methods for Management, By P.N.Arora & S.Arora New Delhi, Sultan
Chand & Sons Publishers, 2005.

WEBSITE

www.performanceappraisal.com

www.citehr.com

www.transcar.com

60 
 
 APPENDIX

QUESTAINNAIRE

Name : ______________________________________________
Gender : ( ) Male ( ) Female
Age Group : ( ) 20-30
( ) 31-40
( ) 41-50
( ) 51-60
Experience : ( ) Less than 5 Years
( ) 6-10Years
( ) 11-15 Years
( ) 16 Years
Qualification : ______________________________________________

1. How many times performance appraisal is conducted in your organization?

a) Once a Year b) Twice a Year c) No Specific
2. What is the reason for conducting performance appraisal in your organization?
a) To identify motivating methods b) To decide monetary benefits

c) Identifying barriers for performance d) All of the above

3. When is the performance appraisal conducted?

a) During working hours b) During non- working hours
4. Who conducts performance appraisal?
a) Superior b) Peers c) Everyone d) Outsider
5. Are you informed the reason for conducting performance appraisal programs?
a) Always b) Sometimes c) Never
6. How many meetings are scheduled in a year to discuss employee performance?
a) Nil b) Once c) Twice d) Thrice

61 
 
 7. Does the Performance Appraisal programs relate to organizational goals?
a) To a high extent b) To some extent c) To a low extent
8. Are you involved along with the manager in designing the appraisal system at the
organization?
a) Always b) Sometimes c) Never
9. Is the performance appraisal developed in relevance to employee job?
a) Highly relevant b) Relevant c) No idea d) Irrelevant e) Highly irrelevant
10. Do you share your opinion and suggestions freely to the managers during the appraisal
program?
a) Mostly b) Rarely c) Never
11. Are you given training to fill up performance appraisal forms?
a) Yes b) No
12. Is the appraiser aware of your job responsibilities and duties?
a) Completely aware b) Aware to an extent c) Not aware
13. Other than performance appraisal does your superior provide you with the formal
feedbacks for performance improvement?
a) Frequently b) Occasionally c) Never
14. Are the raters involved while appraising employees?
a) Highly involved b) Less involved c) Not involved
15. Do you feel that performance appraisal is important in an organization?
a) Highly important b) Less important c) Not important d) No idea
16. Is performance appraisal properly executed in your organization?
a) Yes b) No
17. Does top management support and encourage performance appraisal?
a) Highly Supportive b) Less Supportive c) Not Supportive
18. Is the performance appraisal reviewed and updated now and then?
a) Frequently b) Occasionally c) Never
19. Does performance appraisal identify employee potential for advancement?
a) Highly Effectively b) Effectively c)Neutral

d) Ineffectively e) Highly ineffectively

62 
 
 20. State your satisfaction through the performance appraisal program at the organization?
a) Unsatisfactory b) Needs improvement

c) Meets Expectation d) Outstanding

21. Do you feel performance appraisal encourages you to put in more effort in reaching your
goals?
a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree
22. Do you obtain appraisal feedback?
a) Frequently b) Occasionally c) Rarely d) Never
23. Are both positive and negative points discussed to the employees?
a) Yes b) No
24. How do you feel when negative points are discussed?
a) Discouraged b) Determined to perform better

c) Ready to learn d) Do not want to contribute

25. Rate your appraisal program

a) Reliable b) Effective c) Accurate d) Motivating e) Unbiased
26. Do you feel comfortable in discussing your problems with your superior?
a) Highly Comfortable b) Comfortable c) Neutral

c) Uncomfortable d) Highly uncomfortable

27. On what criteria is employee is employee performance rated?

a) Based on abilities and skills b) Based on management reference

c) Based on superiority d) Based on contribution

28. What changes have been taken in the organization as a result of performance appraisal?
a) Change in motivating strategy
b) Re-structuring of organization or individual objectives
c) Improvement in management-employee relationship
d) Making changes in dissatisfied areas
e) No decision taken

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 29. In general, how effective has your organization performance appraisal system in
improving overall performance
a) Highly ineffective b) Ineffective c) Moderate d) Effective e) Highly effective

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