1.

INTRODUCTION

In the business world investment is made in machinery, equipment a

nd services. Quitenaturally time and money is spent ensuring that
they provide what their suppliers claim. In other words, the
performance is constantly appraised against the results expected.

When it comes to one of the most expensive resources companies

invest in, namely people, the job appraising performance against
results is often carried out with the same objectivity. Each individual
has a role to play and management has to ensure that the
individual’sobjectives translate into overall corporate objectives of th
e company. PerformanceManagement includes the performance
appraisal process which in turn helps identifying the training needs
and provides a direction for career and succession planning.

What is Performance?
Performance is synonymous with behaviour; it is what people actual
do. Performance includes those actions that are relevant to
the organizational growth and can be measured in terms
of each individual’s proficiency (level of contribution).

Effectiveness performance refers to the evaluation of results of

performance that is beyond the influence or control of the individual.

Why Performance Appraisal?????

Today’s working climate demands a great deal of commitment and

effort from employees, who in turn naturally expect a great deal
more from their employers. Performance appraisals designed to
maximize effectiveness by bringing participation to more individual
level in that it provides a forum for consultation about standards of
work, potential, aspirations and concerns. It is an opportunity for
employees to have significantly greater influence upon the quality of
their working lives. In these times of emphasis on “quality”, there is a
natural equation: better quality goods and services from employees
who enjoy better quality “goods and services” from their employers.
Performance appraisal must be seen as an intrinsic part of a
manager’s responsibility and not an unwelcome and time-consuming
addition to them. It is about improving performance and ultimate
effectiveness.

Performance appraisal is a systematic means of ensuring that

managers and their staff
meetregularly to discuss post and present performance issues and to
agree what future isappropriate on both sides. This meeting should
be based on clear and mutual understanding of the job in question
and the standards and outcomes, which are a part of it.

THE APPRAISAL OF PERFORMANCE SHOULD BE GEARED TO:

 Improving the ability of the job holder.

 Identifying obstacles which are restricting performance.
 Agreeing a plan of action, that will lead to improved
performance.
It is widely accepted that the most important factor in organization
effectiveness is the effectiveness of the individuals who make up the
organization. If every individual in the organization becomes more
effective, then the organization itself will become more effective. The
task of reviewing situations and improving individual performance
must therefore be a key task for all managers. For appraisal to be
effective, which means producing results for the company, each
manager has to develop and apply the skills of appraisal

These are: -

 Setting standards on the performance required, which will

contribute to the achievement of specific objectives
 Monitoring performance in a cost –effective manner, to ensure
that previously agreed performance standards are actually
being achieved on an ongoing basis.
 Analysing any difference between the actual performance and
the required performance to establish the real cause of a
shortfall rather than assume the fault to be in the jot holder.
 Interviewing having a discussion with the jobholder to verify
the true cause of a shortfall, a developing a plan of action,
which will provide the performance, required
 RESEARCH AND SURVEY:

Performance appraisal is a process of assessing, summarizing

and developing the work performance of an employee.

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.
Low performance can push the organization back in today’s
tough competition scenario. The project is aimed at analysing
the performance appraisal in companies.

OBJECTIVES :

The various objectives of our research are as follows:

• To examine why an appraisal system is important.

• To study existing appraisal system in various organizations

across sectors like BPO, IT &Telecom.

• To find the expectation of appraiser and appraisee.

• To determine the satisfaction level of the appraisee.

• To reveal the various loopholes in the appraisal system if any

To find the consequences of an inappropriately conducted appraisal
system
Research Methodology:

1. The data source Primary as well as Secondary.

2. The research approach Survey Method.

3. The research instrument Questionnaire.

4. The respondents The Managers & Employees of various

organizations.

The primary data was collected with the help of survey information.
A concise questionnaire was prepared keeping in mind the
information specifications
 FINDINGS AND
RECOMMENDATIONS
 From the survey results its evident that both the appraisee’s
and appraisers expectation from Performance appraisal system
are the same i.e. “Determination of Promotion or Transfer” and
“Salary Administration and Benefits”. Hence a single
performance appraisal system can satisfy needs of both the
Appraiser and appraisee. Therefore the Performance appraisal
program would be designed in such a way that the appraiser
would be able to analyse the contribution of the employee to
the organisation periodically and all the employees who have
been performing well would be rewarded suitably either by an
increase in the salary or a promotion. Through this the
appraiser can also motivate the employees who felt that they
had no growth in the organisation and serves the purpose of
employee development. Thus performance appraisals can be
used as a significant tool career planning.
 Analysing ones own strengths and weaknesses is the best way
of identifying the potentials available, rather than the other
person telling. Self-appraisal is a tool tantalize oneself. One of
the most important findings was that almost all the employees
wanted self-rating to be a part of performance appraisal
program carried out by the organisation. From the responses of
the appraiser we can also see that Self rating is not encouraged
by the organisations. This could therefore bean important
factor which leads to dissatisfaction among the appraisees. At
the end of the year of the appraisal period the appraisal
process should begin with self-appraisal by every employee. To
appraise ones own self on key performing targets and qualities,
 the appraisee would go through a process of reflection and
review. It is an established fact that change is faster when it is
self initiated. If any employee has to improve or do better, he
must first feel the need to do so. Reflection and review is a
process that enables him to feel the need and improve more
upon his strengths and weaknesses.
 The existence of a proper complain channel was also of utmost
importance to the appraisees. They should be given a chance to
convey their gradiences to the top management.
 The appraisees also expect that their comments and
suggestions should be taken into account while conducting the
appraisals. This expectation is not fulfilled as
theappraisers do not take their comments and suggestions into
consideration.Therefore they should look into this matter
before it leads to dissatisfaction among the employees.
 The results also indicate that the there is no communication of
top management plans and business goal to the appraisee.
The appraisers on the other hand feel that
the goals and plans have been clearly communicated to the app
raises. Communication is very essential for any system to
function efficiently. Therefore the appraisers should look into
this matter and see to it that the goals and plans are
communicated effectively.
 The findings suggest that for success of Appraisal system the cr
edibility of appraiser is of utmost importance.
 As per the Appraiser, a poorly conducted appraisal system woul
d lead todemotivation and ineffective teamwork which will
result in inefficient functioning and low productivity in the
organization. Therefore, if at all they feel there is dissatisfaction
among the appraisee’s they should motivate them.
Achievement,recogntion, invelvement, job satisfaction and dev
 elopment can motivate theemployees to a large extent. Along
with this satisfactory working conditions inappropriate awards
also play an important role.
 Also a majority of employees were satisfied with the current
appraisal system although they requested for some changes.
 Most of the employees were also not clear about the criteria on
which ratings were given to each employee while conducting
the performance appraisal. Instead of secrecy there should be
openness. Because of lack of communication, employees may
not know how they are rated. The standards by which
employees think they are being judged are sometimes
different from those their superiors actually use. Proper
communication of these ratings can help the employers achieve
the level of acceptability and commitment which is required
from the employ.
 From the survey we can also derive that the appraisee’s expect
a post appraisal interview to be conducted wherein they are
given a proper feedback on their performance and they
can also put forward their complaints if any. The appraisal
should also be followed up with a session of counselling which
is often neglected in many organizations. Counselling involves
helping an employee to identify his strengths and weaknesses
to contribute to his growth and development. Purpose is to
help an employee improve his performance level, maintain his
morale, guide him to identify and develop his strong points,
overcome his weak points, develop new capabilities to handle
more responsibilities, identify his training needs.
Findings from Appraisal Survey
1. Expectations from Appraisal System .

2. Awareness about Responsibilities :

From the graph it can be seen that majority of employees are aware
about their responsibilities, which implies that the appraisers have
efficiently communicated to the appraise all the parameters that will
be taken into account during appraisal.

3. Satisfaction Level among appraise regarding Appraisal System:

From graph it can be seen that majority of the respondents are

satisfied with the appraisal system. Only a merger 30% were
dissatisfied with the Performance Appraisal programs.

4. Awareness about performance ratings :

This clearly shows that majority of the employees are not aware
about the performance ratings that are taken into account while
conducting a performance appraisal.

5. Alowing Self ratings :

From graph it can be seen that majority of respondents want self

rating to be a method of conducting the appraisals .

6. Chance to rate your own performance :

From the graph we can see that majority of the employees are not
given a chance to rate their own performance in the organization.

7. Timing of Appraisals :

This shows that most of the organisations conduct their Performance

Appraisal programs annually. A very small percentage of the
organisations conduct PerformanceAppraisals on a half yearly
basis. The share of the quarterly and monthly appraisalsare
extremely minimal.
 8. Credibility of Appraiser :

This shows that according to the employees/appraisees the

credibility of the appraiser is extremely important and it has
an effect on the overall Performance appraisal program.

9. Complaint channel for employees

 This shows that there is no proper complaint channel existing in
the organisations for the employees who are dissatisfied with the
performance appraisal system.

10.Standards communicated to employees

From this it can be seen that there is a clear majority among the
employees who saythat the standards on the basis of which the
performance appraisal is carried out is notcommunicated to the
employees before hand.
CONCLUSION
With rewards being directly linked to achievement of
objectives, goal setting and Performance Appraisal assumes
utmost importance. The Performance Appraisal System has
been professionally designed and it is monitored by HRD. The
implementation is the responsibility of each and every
employee along with their supervisor. There should be
adequate training to the evaluator that will go a long way in
answering the quality of Performance Appraisal. In
conclusion, a Performance Appraisal is a very important tool
used to influence employees. A formal Performance review is
important as it gives an opportunity to get an overall view of
job performance and staff development. It encourages
systematic and regular joint-stocking and planning for the
future. Good performance reviews therefore don't just
summarize the past they help determine future performance.
BIBLIOGRAPHY
 Organizational Behavior by Steve Robbins

 The Art of HRD, Reward Management, Volume 9 by Micheal

Armstrongand Helen Murlis

 Performance Management, Concepts, Practices and Strategies

for Organisation success by S. K. Bhatia