PATEL COLLAGE OF SCIENCE AND TECHNOLOGY

INDORE

PROJECT REPORT ON THE STUDY ON

PERFORMANCE APPRAISAL SYSTEM

IN

Solitaire
infoSyS
SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF
MASTER OF BUSINESS ADMINISTRATION

GUIDANCE OF : SUBMITTED BY:

PROF. PUSPARAJ MISHRA Pragya Gurjar
MBA 3rd SEM
ENROLL NO: DX1904989
ROLL NO :221820099

1
 CERTIFICATE

This is to Certify that PRAGYA GURJAR Student of MBA 2nd Year, 3rd Semester in
Batch 20222 - 2024 from PATEL COLLAGE OF SCIENCE AND TECHONOLGY , INDORE
Affiliated to DEVI AHILYAVISHWAVIDHYALA, Indore has Successfully Completed the
major research project titled as “PERFORMANCE APPRAISAL SYSTEM” . It is certificate
that all corrections/suggestions indicated for internal assessment have been incorporated
in the report. The project satisfies the academic requirement in respect of project work
prescribed in the degree.

Internal Examiner External Examiner

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 ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the
kind support and help of many individuals and organization. I would like to extend my since
thanks to all of them.

At the outset, I thank the faculty and Head of the department School of Management whose
guidance is an asset for me for completion of this project.

I am highly indebted to guide Amarjit Arora for their guidance and constant supervision as
well as for providing necessary information regarding the project & also for their support in
competing the project.

I would like to express my gratitude towards my parents & members of solitaire infosys
Career . Development for their kind co-operation and encouragement which help me in
completion of this project.

My thanks and appreciation also go to my colleague in developing the project and people
who have helped me out with their abilities.

PRAGYA GURJAR
ROLL NO : 221820099

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 DECLARATION

I undersigned hereby declare that the Major Research Project Report PERFORMANCE
APPRAISAL SYSTEM written and submitted by me to Devi Ahilya Vishwavidyalaya, Indore, as
partial fulfilment of Degree of Master of Business Administration under the supervision of
Prof. Pushparaj Mishra is my original work and the conclusion drawn therein are based on
the material collected by me.

Pragya Gurjar
MBA III SEM

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 INDEX

CONTENT PAGE NO

Certificate i
Acknowledgement ii
Declaration iii
Index iv
Chapter 1
Project Introduction
Project Introduction 6-7
Chapter 2
Introduction To Company 8-13
History of The Company 9
Company Overview 9-10
Company Structure 11
Product Range 11-12
Feature Projections 12-13

Chapter 3
Industry Profile 14-20
Introduction to industry 15-18
Product Range 18-19
Market share 19-20
Chapter 4
Research Methodology 21-49
Objective of the research 22-23
Research Design 23-47
Review of Literature 23 -48
Sampling Plan 48
Data Collection 48-49

Chapter 5
Data Analysis And Interpretation 50-58
Chapter 6
Conclusions & Suggestions 59-61
Bibliography 62
Questionnaire 63-65

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 Chapter – 1
PROJECT INTRODUCTION

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The objective of the study is to prepare a detail field report on the performance appraisal
procedure of SOLITAIRE INFOSYS and its linkage with other system of human resource
management (training, promotion, transfer, etc.).
• To know the attitude and behaviour of the employees of SOLITAIRE INFOSYS .
• To study about the various performance appraisal techniques, uses, etc.
• To understand the working environment of SOLITAIRE INFOSYS.
Purpose of the Study:
1. In general, the purpose of the study is to know the system of performance appraisal in
SOLITAIRE INFOSYS.
2. Besides, the purpose of the study is to fulfill the partial requirement.
3. To understand satisfaction among employees of SOLITAIRE INFOSYS.

SCOPE OF THE PROJECT

The study on performance appraisal system provides many scopes as the productivity is
entirely depend upon the performance.
• To implement the appropriate performance appraisal method.
• To understand the role of motivation and job satisfaction which are vital for performance
• To know about the performance appraisal system at SOLITAIRE INFOSYS, Patiala.
• To know about the impact of performance appraisal in the growth of SOLITAIRE INFOSYS .
• To know about the working condition of the employees.

LIMITATION OF THE PROJECT

• Some of the information might not be exactly correct

• Time constraint was a serious problem as time was limited.
• The employees were biased to give the information.

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 Chapter – 2
INTRODUCTION TO COMPANY

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 History of the Company

Solitaire Infosys Inc. was a dream came into existence over five years ago with a strong
aspiration of becoming a best IT service provider around the globe. Presently, Solitaire
Infosys is already leading the race with its competitors. Being nurtured by a team of
experienced and sensitive people. We try to bond emotionally with our clients and love to
go an extra mile to satisfy their needs, which is the reason that we hold the edge in the
league.
At Solitaire Infosys Inc. we provide the experience, expertise and capabilities that enable
organizations to accelerate their service processes, deliver more service value and realize
breakthrough results in the markets they serve. Now our clients not only appreciate our
comprehensive range of services, our innovative, streamlined and cost effective solutions,
but more importantly, they appreciate our high level of excellent customer service which is
unparalleled in the industry.

Company Overview

Company aim To be a dynamic, vibrant and value-based global IT service providers centered
around customer, employee and societal goals.
To be a class leading and innovative IT Services Company

By class-leading and developing we mean:

• Dependability, delivering to promise

• Chances for our people to grow and develop
• Opportunities and risks always being handled
• Highly motivated, capable and invested manpower
• Master shareholder return

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 Strategy of the Company

At SOLITAIRE, with our strategy to create new markets and market trends with our
innovative approach, engagements and high-end services, we help our clients to adapt the
fast-moving market trends and to make them the market leaders. We operate with a
philosophy of partnering with the client to maximize and enhance their applications ROI.
This leverages our product engineering heritage to build cutting-edge applications for
matching with customer's changing business requirements.

VISION, MISSION AND CORE VALUES

Vision

Global corporation enriching lives and enabling business transformation for our customers,
with leadership in chosen technologies and markets. Be the first choice for employees and
partners, with commitment to sustainability.

Mission

We enable business transformation and enrichment of lives by delivering sustainable world

class technology products, solutions and services in our chosen markets thereby creating
superior shareholder value.

Core Values

• We shall uphold the dignity of every individual

• We shall honour all commitments
• We shall be responsible corporate citizens
• We shall be committed to Quality, Innovation and Growth in every Endeavour

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 Company Structure

SOLITAIRE INFOSYS is a leading Software and Web Application Development Company, based
in Mohali (Chandigarh), that provides high quality comprehensive services to enterprises
across a wide range of platforms and technologies. Our major areas of expertise are in
providing quality, cost effective software or web development.
Different wings in company according to work structure are:-
i.Website Designing
ii. Web Development
iii. Mobile Applications
iv. Digital Marketing
v. Maintenance

Product Range

There are many type of services provided in different Wings. These services are as under :

Website Web Mobile Digital Maintenance

Wing Design Development Application Marketing

Website Php Unity 3D SEO App

Designing Development Service Maintenance
Service

Service PSD TO Net Phone SMO CMS App

XHTML Development Gap Service Maintenance
Conversion

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 WP Theme CMS Iphone App PPC ERP
Customization Development Development Maintenance

Service Flash And 3D E-Commerce Android App Email Website

animation Development Development Marketing Maintenance

Logo & Window App

Identity Development
Design

Future Projections

The Company focus on understanding the diverse and mission-critical needs of each of our
clients. To understand is to be able to deliver. The competence and experience of our
company gives us a competitive edge by making sure we provide the best services and
products to our clients. Our high quality standards enable us to deliver reliable and error-
free software applications, despite their complexity.

The Company provide Web design/Web development, B2B & B2C E-commerce solutions,
SEO & Web Promotions strategies implementation consulting services to both domestic as
well as international clients at the most affordable rates.

Operating excellence

• A safe, fun and professional work environment

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• Good relationships with industry and other partners

• Respect for the rights and ambitions of our employees

• Honourable, value-driven business relations

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 Chapter – 3
INDUSTRY PROFILE

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 Introduction to industry

Overview of Indian IT Industry The Indian IT industry is growing steadily despite the global
meltdown in the year 2009. When the whole of the world witnessed the negative growth,
Indian IT industry still managed to register a growth of 5.5%. The industry is about to register
the historic landmark of US $ 50 billion exports this year, according to NASSCOM President,
Som MIttal. The domestic market is also slotted to witness 12% growth, this year.
Potential size of India's offshoring industry is estimated at US $ 120 to 180 billion by 2015.
The industry currently employs around 1 million people and provides indirect employment
to around 2.5 million people. It is expected to add another 1, 50,000 jobs in the next fiscal
according to NASSCOM.
Indian IT/ ITec sector is growing substantially with its
• expansion into varied verticals
• well differentiated service offerings
• increasing geographic penetration
The phenomenal success of the Indian IT- ITeS industry can be attributed to the favourable
government policies, burgeoning demand conditions, healthy growth of related industries
and competitive environment prevalent in the industry. The interplay of these forces has led
to putting the industry on the global map.

Government Initiatives:

After the economic reforms of 1991-92, major fiscal incentives provided by the Government
of India and the State Governments, like, liberalization of external trade, elimination of
duties on imports of information technology products, relaxation of controls on both inward
and outward investments and foreign exchange, setting up of Export Oriented Units (EOU),
Software Technology Parks (STP), and Special Economic Zones (SEZ), has enabled India to
flourish and acquire a dominant position in world's IT scenario.
In order to alleviate and to promote Indian IT industry, the Government of India had set up a
National Task Force on IT and Software Development to examine the feasibility of

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strengthening the industry. Venture capital has been the main source of finance for software
industry around the world. In line with the international practices, norms for the operations
of venture capital funds have also been liberalized to boost the industry.
The Government of India is also actively providing fiscal incentives and liberalizing norms for
FDI and raising capital abroad.

Financial Assistance:

While the underlying theme of 2010 was that of steady recovery from recession, thanks to
the accelerated recovery in emerging markets, worldwide spending in IT products and
services increased significantly in 2011. In 2011, India's growth has reflected new demand
for IT goods and services, with a major surge in the use of private and public cloud and
mobile computing on a variety of devices and through a range of new software applications.
High inflow of FDI in the IT sector is expected to continue in coming years. The inflow of
huge volumes of FDI in the IT industry of India has not only boosted the industry but the
entire Indian economy in recent years. Foreign direct investment (FDI) inflow rose by more
than 100 per cent to US$ 4.66 billion in May 2011, up from US$ 2.21 billion a year ago,
according to the latest data released by the Department of Industrial Policy and Promotion
(DIPP). This is the highest monthly inflow in 39 months.
Foreign technology induction is also encouraged both through FDI and through foreign
technology collaboration agreements. India welcomes investors in Information Technology
sector. Greater transparency in policies and procedures has made India an investor friendly
platform. A foreign company can hold equity in Indian company's upto 100%.

Research & Development:

To support Research & development in the country and promoting Start ups focussed on
technology and innovation, a weighted deduction of 150% of expenditure incurred on
inhouse R&D is introduced under the Income Tax Ac. In addition to the existing scheme for
funding various R&D projects have been funded through new scheme like Support
International Patent Protection in Electronics & IT (SIP-EIT), Multiplier Grants Scheme (MGS).
The government has initiated the setting up of an Open Technology Center through NIC
aimed at giving effective direction to the country on Open Technology in the areas of Open
Source Solutions, (OSS), Open Standard, Open Processes, Open Hardware specifications and
Open Course-ware. This initiative will act as a National Knowledge facility providing synergy
to the overall components of Open Technology globally.

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Regulations:

After the economic reforms of 1991-92, liberalization of external trade, elimination of duties
on imports of information technology products, relaxation of controls on both inward and
outward investments and foreign exchange and the fiscal measures taken by the
Government of India and the individual State Governments specifically for IT and ITES have
been major contributory factors for the sector to flourish in India and for the country to be
able to acquire a dominant position in offshore services in the world. The major fiscal
incentives provided by
the Government of India have been for the Export Oriented Units (EOU), Software
Technology Parks (STP), and Special Economic Zones (SEZ).

Challenges:

Cyber security and quality management are few key areas of concern in today's information
age. To overcome such concerns in today's global IT scenario, an increasing number of ITBPO
companies in India have gradually started to emphasize on quality to adopt global standards
such as ISO 9001 (for Quality Management) and ISO 27000 (for Information Security). Today,
center based in India account for the largest number of quality certifications achieved by any
single country.
India aims to transform India into a truly developed and empowered society by 2020.
However, to achieve this growth, the sector has to continue to re-invent itself and strive for
that extra mile, through new business models, global delivery, partnerships and
transformation. A collaborative effort from all stakeholders will be needed to ensure future
growth of India's IT-ITeS sector. We will need to rise up to the new challenges and put in
dedicated efforts toward providing more and more of end-to-end solutions to the clients to
keep the momentum going.
India is now one of the biggest IT capitals in the modern world and has presence of all the
major players in the world IT sector. HCL, Wipro, Infosys and TCS are few of the household
names of IT companies in India.

Future prospects:

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Globalization has had a profound impact in shaping the Indian Information Technology
industry. Over the years, verticals like manufacturing, telecom, insurance, banking, finance
and lately the retail, have been the growth drivers for this sector. But it is very fast getting
clear that the future growth of IT and IT enabled services will be fuelled by the verticals of
climate change, mobile applications, healthcare, energy efficiency and sustainable energy.
The near future of Indian IT industry sees a significant rise in share of technology spend as
more and more service providers both Indian and global target new segments and provide
low cost, flexible solutions to customers.
By 2015, IT sector generate revenues of USD 130 billion (NASSCOM) which will create a
transformational impact on the overall economy. IT spending is expected to significantly
increase in verticals like automotive and healthcare while the government, with its focus on
e-governance, will continue to be a major spender.

Product Range

IT Services
The IT services segment aggregated export revenues of USD 43.9 billion, accounting for
nearly 58 percent of total exports and a growth of 9.9 percent over FY2012.
Indian IT service offerings have evolved from application development and maintenance, to
emerge as full service players providing testing services, infrastructure services, consulting
and system integration.
Within that, IT outsourcing exhibited strong growth, in line with global trends, driven by
increased spend in the remote infrastructure management, application management, testing
and service oriented architecture segments. Cloud computing, mobile computing gained
credence in FY2013 as it offered clients access to best-in-class process management at
reduced capital expenditure levels.

Business Process Management

The BPM segment has been reinventing itself in the past few years and is expected to be the
fastest growing at 12.2 percent and estimated to gross USD 17.8 billion in FY2013.

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Increased acceptance of platform BPM solutions was the key highlight, as providers
increasingly focused on transforming client businesses through a mix of re-engineering skills,
technology enablement, and new service delivery methods.

ER&D, OSPD and Software Products

Engineering research and development (ER&D), outsourced software product development

(OSPD) and software products segments are estimated to generate exports of USD 14.1
billion, a growth of nearly 9 percent over FY2012. ER&D firms are increasingly developing
capabilities that are enabling them to participate across all stages of development, thereby
delivering high-end services to customers. Disruptive technologies - cloud, mobility, social
media and big data/analytics, are playing a significant role in driving growth of OSPD and
software products

Market Share

Information technology (IT) industry in India has played a key role in putting India on the
global map. IT industry in India has been one of the most significant growth contributors for
the Indian economy. The industry has played a significant role in transforming India's image
from a slow moving bureaucratic economy to a land of innovative entrepreneurs and a
global player in providing world class technology solutions and business services. The
industry has helped India transform from a rural and agriculture-based economy to a
knowledge based economy.
Information Technology has made possible information access at gigabit speeds. It has made
tremendous impact on the lives of millions of people who are poor, marginalized and living
in rural and far flung topographies. Internet has made revolutionary changes with
possibilitiesof e-government measures like e-health, e-education, e-agriculture, etc. Today,
whether its filing Income Tax returns or applying for passports online or railway e-ticketing, it
just need few clicks of the mouse. India's IT potential is on a steady march towards global
competitiveness, improving defense capabilities and meeting up energy and environmental
challenges amongst others.
IT-ITeS sector in India, with the main focus on increasing technology adoption, and
developing new delivery platforms, has aggregated revenues of USD 88.1 billion in FY2011,
while generating direct employment for over 2.5 million people. Out of 88.1 billion, export

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revenues (including Hardware) has reached USD 59.4 billion in FY2011 while domestic
revenues (including Hardware) of about USD 28.8 billion.
Finacial year '15
• The Indian IT/ITES industry earned revenue of over US$ 146 bn during FY 15. Out of this,
exports accounted about 67% of the industry's revenue.

• In terms of growth by industry verticals, BFSI, Telecom/Hi-Tech, Manufacturing, and Retail

are the most important at 41%, 18%, 16%, and 10% shares respectively.

• The USA accounts for about 62% of the export revenue followed by the UK and Continental
Europe, with 17% and 11% respectively. Other regions such as Asia Pacific are catching up,
with a contribution of

• At the end of FY 15, India's share in the global outsourcing market stood at 55%.

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 Chapter – 4
RESEARCH METHOLOGY

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 OBJECTIVES OF THE RESEARCH

Research methodology is a systematic way, which consists of series of actions or steps

necessary to effectively carry out research and the desired sequencing of these steps.
The research is a process of involves a number of interrelated activities, which overlap and
do rigidly follow a particular sequence. It consists of the following steps:

Objectives :

• Formulating the objective of the study

• Designing the methods of data collection
• Selecting the sample plan
• Collecting the data
• Processing and analysing the data

RESEARCH DESIGN

Research Design refers to "framework or plan for a study that guides the collection and
analysis of data". A typical research design of a company basically tries to resolve the
following issues:
• Determining Data Collection Design
• Determining Data Methods
• Determining Data Sources
• Determining Primary Data Collection Methods
• Developing Questionnaires
• Determining Sampling Plan

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(1) Explorative Research Design: Explorative studies are undertaken with a view to know
more about the problem. These studies help in a proper definition of the problem, and
development of specific hypothesis is to be tested later by more conclusive research designs.
Its basic purpose is to identify factors underlying a problem and to determine which one of
them need to be further researched by using rigorous conclusive research designs .

(2) Conclusive Research Design :Conclusive Research Studies are more formal in nature
and are conducted with a view to eliciting more precise information for purpose of making
marketing decisions.
These studies can be either:
a) Descriptive or
b) Experimental
Thus, it was mix of both the tools of Research Design that is, Explorative as well as
Conclusive.

REVIEW OF LITERATURE

Performance appraisal has been defined by different scholars in various ways. Some of the
important definitions are as follows:
Dale S. Beach, "Performance appraisal is a systematic evaluation of the individual with
respect to his or her performance on the job and his or her potential for development."
Randall S Schedule , "performance appraisal is formal structure system of measuring and
evaluating an employee's job related behaviour and outcomes to discover how and why the
employee is presently perfuming on the job and how the employee canperform more
effectively in the future so that the employee, organization and society all benefits."
Dale Yoder, "Performance appraisal includes all formal procedures used to evaluated
personalities and contributions and potentials of group members in a working organization.
It is a continuous process to secure information necessary for making correct and objective
decisions on employees."
Performance appraisal from employee point of view-"A performance appraisal is
meant to help employees their strengths and shortcomings and receive compensation
accordingly."

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Mcgreror (1957) suggested that, employees should be appraised on the basis of short-term
goals, rather than traits, which are jointly set by the employee and the manager.

H.C. Shiva Prasad (2010 done work to check 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, job rotation, and promotion decision.

INTRODUCTION TO THE TOPIC

HUMAN RESOURCE MANAGEMENT AND PERFORMANCE APPRAISAL SYSTEM:

Performance appraisal system and human resource management are related to each other.
A performance appraisal is a review and discussion of an employee's
performance of assigned duties and responsibilities. The appraisal is based on results
obtained by the employee in his/her job, not on the employee's personality, characteristics.
Before, I dwell in detail on the topic; I would like to touch certain factors of Human
Resources Management.
The performance appraisal is part of a larger system known as the performance
management system. This system is the approach to the management of people using
performance, planned goals and objectives, measurement, feedback and recognition to
motivate people to realize their maximum potential. Performance appraisal involves the
setting of clear quantifiable goals and objectives and assessing individual performance
against these measures.

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Human Resource Management involves management functions like planning, organizing,
directing and controlling. It involves procurement, development, maintenance of human
resource. It helps to achieve individual, organizational and social objectives. Human
Resource Management is a multidisciplinary subject. It includes the study of management,
psychology, communication, economics and sociology. It involves team spirit and team work.
It is a continuous process. Why Is Human Resource Management Important to All Managers?
Why are these concepts and techniques important to all managers? Perhaps it's easier to
answer this by listing some of the personnel mistakes which we cannot afford while
managing. For example, you don't want to:

• Hire the wrong person for the job

• Have your people not doing their best
• Waste time with useless interviews
• Have your company taken to court because of discriminatory actions
• Have your company cited under federal occupational safety laws for unsafe practices
• Have some employees think their salaries are unfair and inequitable relative to others in
the organization
• Allow a lack of training to undermine your department's effectiveness
• Commit any unfair labour practices.

HR now focuses on strategic initiatives like mergers and acquisitions, talent management,
succession planning, industrial and labor relations, and diversity and inclusion.

All global companies are focused on retaining the talent and knowledge held by the
workforce. All companies are focused on lowering the employee turnover and preserving
knowledge. New hiring not only entails a high cost but also increases the risk of the
newcomer not being able to replace the person who was working in that position before. HR
departments also strive to offer benefits that will appeal to workers, thus reducing the risk
of losing knowledge.

The second definition of HRM encompasses the management of people in organizations

from a macro perspective i.e. managing people in the form of a collective relationship
between management and employees. This approach focuses on the objectives and
outcomes of the HRM function whatever the definition we use the answer to the question
as to "what is HRM?" is that it is all about people in organizations. No wonder that some

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MNC's (Multinationals) call the HR managers as People Managers, People Enablers and the
practice as people management. HR manager is responsible for managing employee
expectations vis-à-vis the management objectives and reconciling both to ensure employee
fulfillment and realization of management objectives.
Employee relations generally deal with avoiding and resolving issues concerning individuals
which might arise out of or influence the work scenario. Strong employee relation depends
upon healthy and safe work environment, cent percent involvement and commitment of all
employees, incentives for employee motivation, and effective communication system in the
organization. Healthy employee relations lead to more efficient, motivated and productive
employees which further lead to increase in sales level. When the employees do not behave
as per accepted norms of behaviour, it is known as employee indiscipline. Absenteeism,
change in employee's behaviour, slow performance and grievances are all forms of
employee indiscipline. Thus, when the employees fail to meet management expectations in
terms of standard performance and behaviour, it is referred to as indiscipline. In such cases,
it must be ensured by the management that steps should be taken so that employee's
behaviour is in conformity with the managerial expectations.
Similarly, the employees also expect from the management to provide them a safe working
environment, fair treatment, proper incentives, participation in decisions, and needs
satisfaction. The failure on part of management to meet these expectations is termed as
employee grievance.
When the employees fail to meet their own expectations whether in terms of personal
goals, career goals, performance, self-respect, etc. it is referred to as employee stress.
Excessive workload, insufficient workload, peer pressure, excessive/unreasonable use of
authority by the management, lack of promotional opportunities, nature of job, etc. all again
lead to employee stress.
An effective grievance redressed system should be there and Stress management strategies
should be followed in the organization.

SCOPE OF HUMAN RESOURCE MANAGEMENT

Human resources are undoubtedly the key resources in an organization, the easiest and the
most difficult to manage! The objectives of the HRM span right from the manpower needs
assessment to management and retention of the same. To this effect Human resource
management is responsible for effective designing and implementation of various policies,
procedures and programs. It is all about developing and managing knowledge, skills,
creativity, aptitude and talent and using them optimally.

26
It also focuses on managing physical and emotional capital of employees. Considering the
intricacies involved, the scope of HRM is widening with every passing day. It covers but is not
limited to HR planning, hiring(recruitment and selection), training and development, payroll
management, rewards and recognitions, Industrial relations, grievance handling,
legalprocedures etc. In other words, we can say that it's about developing and managing
harmonious relationships at workplace and striking a balance between organizational goals
and individual goals.
The scope of HRM is extensive and far-reaching. Therefore, it is very difficult to define it
concisely. However, we may classify the same under following heads:

• HRM in Personnel Management: This is typically direct manpower management that

involves manpower planning, hiring (recruitment and selection), training and development,
induction and orientation, transfer, promotion, compensation, layoff and retrenchment,
employee productivity. The overall objective here is to ascertain individual growth,
development and effectiveness which indirectly contribute to organizational development. It
also includes performance appraisal, developing new skills, disbursement of wages,
incentives, and allowances, travelling policies and procedures and other related courses of
actions.

• HRM in Employee Welfare: This particular aspect of HRM deals with working conditions
and amenities at workplace. This includes a wide array of responsibilities and services such
as safety services, health services, welfare funds, social security and medical services. It also
covers appointment of safety officers, making the
environment worth working, eliminating workplace hazards, support by top management,
job safety, safeguarding machinery, cleanliness, proper ventilation and lighting, sanitation,
medical care, sickness benefits, employment injury benefits, personal injury benefits,
maternity benefits, unemployment benefits and family benefits.

• It also relates to supervision, employee counseling, establishing harmonious relationships

with employees, education and training. Employee welfare is about determining employees'
real needs and fulfilling them with active participation of both management and employees.
In addition to this, it also takes care of canteen facilities, crèches, rest and lunch rooms,
housing, transport, medical assistance, education, health and safety, recreation facilities, etc.

• HRM in Industrial Relations: Since it is a highly sensitive area, it needs careful interactions
with labor or employee unions, addressing their grievances and settling the disputes
effectively in order to maintain peace and harmony in the organization. Its the art and
science of understanding the employment (union-management) relations, joint consultation,

27
disciplinary procedures, solving problems with mutual efforts, understanding human
behavior and maintaining work relations, collective bargaining and settlement of disputes.
The scope of HRM is extremely wide, thus, cannot be written concisely. However, for the
sake of convenience and developing understanding about the subject, we divide it in three
categories mentioned above.

PROCESSES IN HUMAN RESOURCE MANAGEMENT

Each organization works towards the realization of one vision. The same is achieved by formulation
of certain strategies and execution of the same, which is done by the HR department. At the
base of this strategy formulation lie various processes and the effectiveness of the former
lies in the meticulous design of these processes.

The following are the various HR processes:

• Human resource planning (Recruitment, Selecting, Hiring, Training, Induction, Orientation,

Evaluation, Promotion and Layoff).
• Employee remuneration and Benefits Administration
• Performance Management.
• Employee Relations.

The efficient designing of these processes apart from other things depends upon the degree
of correspondence of each of these. This means that each process is subservient to other.

• Human Resource Planning: Generally, we consider Human Resource Planning as the

process of people forecasting. Right but incomplete! It also involves the processes of
Evaluation, Promotion and Layoff.

• Recruitment: It aims at attracting applicants that match a certain Job criteria.

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• Selection: The next level of filtration. Aims at short listing candidates who are the nearest
match in terms qualifications, expertise and potential for a certain job.

• Hiring: Deciding upon the final candidate who gets the job.

• Training and Development: Those processes that work on an employee on board for his
skills and abilities up gradation.

• Employee Remuneration and Benefits Administration: The process involves deciding upon
salaries and wages, Incentives, Fringe Benefits and Perquisites etc.
Money is the prime motivator in any job and therefore the importance of this process.
Performing employees seek raises, better salaries and bonuses.

• Performance Management: It is meant to help the organization train, motivate and reward
workers. It is also meant to ensure that the organizational goals are met with efficiency. The
process not only includes the employees but can also be for a department, product, and
service or customer process; all towards enhancing or adding value to them.
Nowadays there is an automated performance management system (PMS) that carries all
the information to help managers evaluate the performance of the employees and assess
them accordingly on their training and development needs.

• Employee Relations: Employee retention is a nuisance with organizations especially in

industries that are hugely competitive in nature. Though there are myriad factors that
motivate an individual to stick to or leave an organization, but certainly few are
under our control.
Employee relations include Labor Law and Relations, Working Environment, Employee
health
and safety, Employee- Employee conflict management, Employee- Employee Conflict
Management, Quality of Work Life, Workers Compensation, Employee Wellness and
assistance programs, Counselling for occupational stress. All these are critical to employee
retention apart from the money which is only a hygiene factor.
All processes are integral to the survival and success of HR strategies and no single process
can work in isolation; there has to be a high level of conformity and cohesiveness between
the same.

29
PERFORMANCE

A performance management discussion should be uncomplicated but detailed enough to

give employees a clear indication of what is required of them in their jobs. The focus is
ondialogue. It is important when a performance expectation is set to determine how it will
be measured.
Employees are performing well when they are productive. Productivity implies both concern
for effectiveness and efficiency, effectiveness refers to goal accomplishment. However it
does not speak of the costs incurred in reaching the goal. That is where efficiency comes in.
Efficiency evaluates the ratio of inputs consumed to outputs achieved. The greater the
output for a given input, the greater the efficiency. It is not desirable to have objective
measures of productivity such as hard data on effectiveness, number of units produced, or
percent of crimes solved etc. and hard data on efficiency.
In addition to productivity as measured in terms of effectiveness and efficiency. Performance
also includes personnel data such as measures of accidents, turnover, absences and
tardiness.
That is a good employee is one who not only perform well in terms of productivity but also
minimizes problems for the organization by being to work on time, by not missing days and
by minimizing the number of work-related accidents.

APPRAISAL

Appraisals are judgments of the characteristics, traits and performance of others. on the
basis of these judgments we assess the worth or value of others and identify what is good or
evaluation of employees by supervisors. Employees also wish essential for making many
administrative decisions, selection, training, promotion, transfer, wage and salary
administration etc. Besides they aid in personnel research.

30
 PERFORMANCE APPRAISAL

Performance appraisal is an important part of human Resource management. Without HR,

performance appraisal will not work. Performance appraisal aims at achieving the
organizational goals and objectives. It focuses on minimization of cost and maximization of
benefits and profits. It is:
1) Goal oriented
2) Result oriented
3) Enhance the performance
4) Achieve the organizational goals
Performance appraisal thus is a systematic and objective way of judging the relative worth of
ability of an employee in performing his task. Performance appraisal helps to identify those
who are performing their assigned tasks well and those who are not and the reasons such
performance.
Performance appraisal is the assessment of individual's performance in a systematic way. It
is a developmental tool used for all round development of the employee and the
organization.

The performance is measured against such factors as job knowledge, quality and quantity of
output, initiative, leadership abilities, supervision, dependability, co-operation, judgment,
versatility and health. Assessment should be confined to past as well as potential
performance also. Performance appraisal is generally done in systematic ways which are as
follows:

1. The supervisors measure the pay of employees and compare it with targets and plans.
2. The supervisor analyses the factors behind work performances of employees.
3. The employers are in position to guide the employees for a better performance.

The performance appraisal is the process of assessing employee performance by way of

comparing present performance with already established standards which have been

31
already communicated to employees, subsequently providing feedback to employees about
their performance level for the purpose of improving their performance as needed by the
organization.
As said above the very purpose of performance uprising is to know performance of
employee, subsequently to decide whether training is needed to particular employee or to
give promotion with additional pay hike. Performance appraisal is the tool for determining
whether employee is to be promoted, demoted or sacked (remove) in case of very poor
performance and no scope for improvement.
Every corporate sector uses performance appraisal as a tool for knowing about the
employee and take decisions about particular employee.

OBJECTIVES OF PERFORMANCE APPRAISAL

Performance Appraisal can be done with following objectives in mind:

1. To maintain records in order to determine compensation packages, wage structure,
salaries raises, etc.
2. To identify the strengths and weaknesses of employees to place right men on right job.
3. To maintain and assess the potential present in a person for further growth and
development.
4. To provide a feedback to employees regarding their performance and related status.
5. To provide a feedback to employees regarding their performance and related status.
6. It serves as a basis for influencing working habits of the employees.
7. To review and retain the promotional and other training programmes.

ADVANTAGES OF PERFORMANCE APPRAISAL

It is said that performance appraisal is an investment for the company which can be justified
by following advantages:

32
1. Promotion: Performance Appraisal helps the supervisors to chalk out the promotion
programmes for efficient employees. In this regards, inefficient workers can be dismissed or
demoted in case.

2. Compensation: Performance Appraisal helps in chalking out compensation packages for

employees. Merit rating is possible through performance appraisal. Performance Appraisal
tries to give worth to a performance. Compensation packages which include bonus, high
salary rates, extra benefits, allowances and pre-requisites are dependent on performance
appraisal. The criteria should be merit rather than seniority.

3. Employees Development: The systematic procedure of performance appraisal helps the

supervisors to frame training policies and programmes. It helps to analyze strengths and
weaknesses of employees so that new jobs can be designed for efficient employees. It also
helps in framing future development programmes.

4. Selection Validation: Performance Appraisal helps the supervisors to understand the

validity and importance of the selection procedure. The supervisors come to know the
validity and thereby the strengths and weaknesses of selection procedure. Future changes in
selection methods can be made in this regard.

5. Communication: For an organization, effective communication between employees and

employers is very important. Through performance appraisal, communication can be sought
for in the following ways: a)
Through performance appraisal, the employers can understand and accept skills of
subordinates.
The subordinates can also understand and create a trust and confidence in superiors.
It also helps in maintaining cordial and congenial labour management relationship.
It develops the spirit of work and boosts the morale of employees.

GOALS OF PERFORMANCE APPRAISALS

General Goals Specific Goals

33
 Individual needs
Performance feedback
Developmental use Transfer and placements
Strengths and Development needs

Administrative Decisions / Use Salary

Promotion
Retention / Termination
Recognition
Lay offs
Poor Performance identification
HR Planning
Training Needs
Organizational Maintenance Organizational Goal achievements
Goal Identification
HR Systems Evaluation
Reinforcement of organizational needs

Documentation Validation Research

For HR Decision

IMPORTANCE OF PERFORMANCE APPRAISAL

Performance appraisal provides important and useful information for the assessment of
employee's skill, knowledge, ability and overall job performance. The following are the
points which indicate the importance of performance appraisal in an organization:
Performance appraisal helps supervisors to assess the work performance of their
subordinates.

1.Performance appraisal helps to assess the training and development needs of employees.
2. Performance appraisal provides grounds for employees to correct their mistakes, and it
also provides proper guidance and criticism for employee's development.
3. Performance appraisal provides reward for better performance.
4. Performance appraisal helps to improve the communication system of the organization

34
5. Performance appraisal evaluates whether human resource programs being implemented
in the organization have been effective.
6. Performance appraisal helps to prepare pay structure for each employee working in the
organization.
7. Performance appraisal helps to review the potentiality of employees so that their future
capability is anticipated.

Performance appraisal activity to be carried out smoothly in a business organization, various

methods that lead to make inferences and predictions, are adopted that, in turn, would be
useful to bring a conclusive evidence to the overall performance of the employees. And the
sole purpose of any method is to make observation thoroughly about the performance of
the employees and other related factors so as to let them know where they stand and advise
them how they need to improve their performance. They are also to be notified for their
weak areas in which they need to put extra efforts to achieve a satisfactory level of
performance or for which they are to be trained. The process of performance appraisal also
includes determining promotion for those who deserve and the transfer in case it is to
benefit both, the employee as well as the organization.

It is necessary for a business organization to carry out the activity of performance appraisal
periodically as it entails twofold beneficial effect. To a business it does help to grow
strengthening total organizational competencies and creating effectiveness and efficiency. To
the employees, making them realize their full potential, it becomes a source to motivate
them to do their jobs in the best way.

Benefits of Performance Appraisal:

One of the most significant benefits of performance appraisal is that, in the rush and bustle
of daily working life, it offers a rare chance for a supervisor and subordinate to have "time
out" for a one-on-one discussion of important work issues that might not otherwise be
addressed.
Almost universally, where performance appraisal is conducted properly, both supervisors
and
subordinate have reported experience and beneficial as positive.
Appraisal offers a valuable opportunity to focus on work activities and goals, to identify and
correct existing problems, and to encourage better future performance. Thus the
performance of the whole organization is enhanced.

35
For many employees, an "official" appraisal interview may be the only time they get to have
exclusive, uninterrupted access to their supervisor. Said one employee of a large
organization after his first formal performance appraisal, "In twenty years of work, that's the
first time anyone has ever bothered to sit down and tell me how I'm doing."
The value of this intense and purposeful interaction between a supervisors and subordinate
should not be underestimated.

Role of Performance Appraisal in Training and Development:

Performance appraisal offers an excellent opportunity - perhaps the best that will ever occur
- for a supervisor and subordinate to recognize and agree upon individual training and
development needs.
During the discussion of an employee's work performance, the presence or absence of work
skills can become very obvious - even to those who habitually reject the idea of training for
them.
Performance appraisal can make the need for training more pressing and relevant by linking
it clearly to performance outcomes and future career aspirations.
From the point of view of the organization as a whole, consolidated appraisal data can form
a picture of the overall demand for training. This data may be analyzed by variables such as
sex, department, etc. In this respect, performance appraisal can provide a regular and
efficient training needs audit for the entire organization.

Performance Appraisal and Recruitment and Induction:

Appraisal data can be used to monitor the success of the organization's recruitment and
induction practices. For example, how well are the employees performing who were hired in
the past two years?
Appraisal data can also be used to monitor the effectiveness of changes in recruitment
strategies. By following the yearly data related to new hires (and given sufficient numbers on
which to base the analysis) it is possible to assess whether the general quality of the
workforce is improving,
Staying steady, or declining.

36
Employee Evaluation:

Though often understated or even denied evaluation is a legitimate and major objective of
performance appraisal.
But the need to evaluate (i.e., to judge) is also an ongoing source of tension, since evaluative
and developmental priorities appear to frequently clash. Yet at its most basic level,
performance appraisal is the process of examining and evaluating the performance of an
individual.
Though organizations have a clear right - some would say a duty - to conduct such
evaluations of performance, many still recoil from the idea. To them, the explicit process of
judgment can be dehumanizing and demoralizing and a source of anxiety and distress to
employees.
It is said by some that performance appraisal cannot serve the needs of evaluation and
development at the same time; it must be one or the other.

USES OF PERFORMANCE APPRAISAL

Performance appraisal is crucial tool in the hands of the management to bring about greater
agility and responsiveness in human resources of an organization. Performance appraisal is
the foundation of much human resource decision. Therefore, it has multifarious uses as
depicted below:

• Performance improvement: Performance feedback allows the employee, manager and

personnel specialists to intervene with appropriate actions to improve performance.

• Compensation adjustments: Performance evaluations help decision-makers determine

who should receive pay raises. Many firms grant part or all pay increases and bonuses based
upon merit, which is determined mostly through performance appraisals.

• Placement decisions: Promotions, transfers and demotions are usually based on past or
anticipated performance. Often promotions are a reward for past
performance.

37
• Training and development needs: Poor performance may indicate the need for retraining.
Likewise, good performance may indicate untapped potential that should be developed.

• Career planning and development: Performance feedback guides career decisions about
specific career paths one should investigate.

• Staffing process deficiencies: Good or bad performance implies strengths or weakness in

the personnel department's staffing procedures.

• Informational inaccuracies: Poor performance may indicate errors in job analysis

information, human resource plans, or other parts of the personnel management
information system. Reliance on inaccurate information may have led to inappropriate hiring
, or counselling decisions.

• Job design errors: Poor performance may be a symptom of ill-conceived job designs.
Appraisals help diagnose these errors.

• Equal employment opportunity: Accurate performance appraisals that actually measure

job elated performance ensure that internal placement decisions are not discriminatory.

• External challenges: Sometimes performance is influenced by factors outside the work

environment such as family, financial, health or other personal matters. If uncoveredthrough
appraisals, the human resource department may be able to provi de assistance.

Feedback to human resources: Good/bad performance throughout the organization

indicates how well the human resource function is performing advertisements.

PERFORMANCE APPRAISAL PROCESS

Establishing performance
Standards

38
 Communicating standards
and expectations

Measuring the actual

Performance

Comparing with standards

Discussing results (Providing feedback)

Decision making - taking corrective actions

Performance appraisal is planned, developed and implemented through a series of steps:

1) Establish Performance Standards.

Appraisal systems require performance standards, which serve as benchmarks
against which performance is measured. In order to be useful, standards should
relate to the desired results of each job. Appraisals must have a clear- cut criteria.
Performance standards must be both to appraiser and the appraisee. The
performance standards of goals must be developed after a thorough analysis of the
job. Goals must be written down. They must be measurable within certain time and
cost considerations.

2)Communicate the Standards.

Performance appraisal involves attract two parties; the appraiser who does the
appraisal and the appraise. whose performance is being evaluated. Both are
expected to do certain things.
The appraiser should prepare job descriptions clearly, help appraise set his goals and
targets; analysis results objectively; offer coaching and guidance to appraise
whenever required and reward good results. The appraiser should be very clear
about what he is doing and why he is doing. For this purpose, the performance
standards must be communicated to appraise and their reactions are noted initially.
These standards must be revised or modified as and when required.

39
3) Measure Actual Performance.

After the performance standards are set and accepted, the next step is to measure
actual performance. This requires the use of dependable performance measures, the
ratings used to evaluate performance. Performance measures in order to be helpful
must be easy to use, reliable and report on the critical behaviors that determine
performance. Generally, managers
regarding how to measure actual performance use four common sources of
information: personal observation, statistical reports, oral reports and written
reports.

4) Compare Actual Performance with Standards and Discuss the Appraisal .

Actual performance may be better than expected and sometimes it may even go off
the track.
The assessment of another person's contribution and ability is not an easy task. It has
serious emotional overtones as it affects the self-esteem of the appraise. Any
appraisal asked on subjective criteria is likely to be questioned by the appraisers and
leave him quite dejected and unhappy when the appraisal turns out to be negative.

5) Taking Corrective Action, if Necessary.

Corrective action is of two types: The one, which puts out the fires immediately and
the other one, which strikes at the root of the problems permanently. Immediate
action sets things right and get things back or track, whereas the basic corrective
action gets to the source of deviations and seems to adjust the difference
permanently. Basic corrective step seek to find out how and why performance
deviate.

Difference between Traditional and Modern (Systems) approach to

Appraisals

Categories Traditional Appraisals Modern, system Appraisal

Individualistic, Control oriented, Systematic , Development,
Guiding values Documentary Problem solving

Leadership Directional , Evaluative Facilitative, Coaching

Styles

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 Frequency Occasional Frequent

Formalities High Low

Rewards Individualistic Grouped, organizational

TECHNIQUES / METHODS OF PERFORMANCE APPRAISALS

Numerous methods have been devised to measure the quantity and quality of
performance appraisals. Each of the methods is effective for some purposes for some
organizations only.
None should be dismissed or accepted as appropriate except as they relate to the
particular needs of the organization or an employee.
Broadly all methods of appraisals can be divided into two different categories.
Past Oriented Methods
Future Oriented Methods

PAST ORIENTED METHODS

1. Rating Scales: Rating scales consists of several numerical scales representing job
related performance criterions such as dependability, initiative, output, attendance,
attitude etc. Each scales ranges from excellent to poor. The total numerical scores are
computed and final conclusions are derived.
Advantages - Adaptability, easy to use, low cost, every type of job can be evaluated,
large number of employees covered, no formal training required
Disadvantages - Rater's biases

2. Checklist: Under this method, checklist of statements of traits of employee in the

form of Yes or No based questions is prepared. Here the rater only does the reporting
or checking and HR department does the actual evaluation.
Advantages - economy, ease of administration, limited training required,
standardization.
Disadvantages - Raters biases, use of improper weighs by HR, does not allow rater to
give relative ratings.

41
3. Forced Choice Method: The series of statements arranged in the blocks of two or
more are given and the rater indicates which statement is true or false. The rater is
forced to make a choice. HR department does actual assessment.
Advantages - Absence of personal biases because of forced choice.
Disadvantages - Statements may be wrongly framed.

4. Forced Distribution Method: here employees are clustered around a high point on
a rating scale. Rater is compelled to distribute the employees on all points on the
scale. It is assumed that the performance is conformed to normal distribution.
Advantages - Eliminates
Disadvantages - Assumption of normal distribution, unrealistic, errors of central
tendency.

5. Critical Incidents Method: The approach is focused on certain critical behaviors of

employee that makes all the difference in the performance. Supervisors as and when
they occur record such incidents.
Advantages - Evaluations are based on actual job behaviors, ratings are supported by
descriptions, feedback is easy, reduces recency biases, chances of subordinate
improvement are high.
Disadvantages - Negative incidents can be prioritized, forgetting incidents, overly
close supervision; feedback may be too much and may appear to be punishment.

6. Behaviourally Anchored Rating Scales: statements of effective and ineffective

behaviours determine the points. They are said to be behaviourally anchored. The
rater is supposed to say, which behaviour describes the employee performance
Advantages - helps overcome rating errors.
Disadvantages - Suffers from distortions inherent in most rating techniques.

7. Field Review Method: This is an appraisal done by someone outside employees'

own department usually from corporate or HR department.
Advantages - Useful for managerial level promotions, when comparable information
is needed.
Disadvantages - Outsider is generally not familiar with employees work environment,
Observation of actual behaviors not possible.

8. Performance Tests & Observations: This is based on the test of knowledge or

skills. The tests may be written or an actual presentation of skills. Tests must be
reliable and validated to be useful.
Advantage - Tests may be apt to measure potential more than actual performance.

42
Disadvantages - Tests may suffer if costs of test development or administration are
high.

9. Confidential Records: Mostly used by government departments, however its

application in industry is not ruled out. Here the report is given in the form of Annual
Confidentiality Report (ACR) and may record ratings with respect to following items;
attendance, self expression, team work, leadership, initiative, technical ability,
reasoning ability, originality and resourcefulness etc. The system is highly secretive
and confidential. Feedback to the assessee is given only in case of an adverse entry.

10. Essay Method: In this method the rater writes down the employee description in
detail within a number of broad categories like, overall impression of performance,
promote ability of employee, existing capabilities and qualifications of performing
jobs, strengths and weaknesses and training needs of the employee.
Advantage - It is extremely useful in filing information gaps about the employees that
often occur in a better-structured checklist.
Disadvantages - It its highly dependent upon the writing skills of rater and most of
them are not good writers. They may get confused success depends on the memory
power of raters.

11. Cost Accounting Method: Here performance is evaluated from the monetary
returns yields to his or her organization. Cost to keep employee, and benefit the
organization derives is ascertained. Hence it is more dependent upon cost and
benefit analysis.

12. Comparative Evaluation Method (Ranking & Paired Comparisons): These are
collection of different methods that compare performance with that of other co-
workers. The usual techniques used may be ranking methods and paired comparison
method.
• Ranking Methods: Superior ranks his worker based on merit, from best to worst.
However how best and why best are not elaborated in this method. It is easy to
administer and explanation.

13. Paired Comparison Methods: In this method each employee is rated with
another employee in the form of pairs. The number of comparisons may be
calculated with the help of a formula as under

43
FUTURE ORIENTED METHODS

1. Management by Objectives: It means management by objectives and the

performance is rated against the achievement of objectives stated by the
management. MBO process goes as under.
Establish goals and desired outcomes for each subordinate
• Setting performance standards
• Comparison of actual goals with goals attained by the employee
• Establish new goals and new strategies for goals not achieved in previous year.
Advantage - It is more useful for managerial positions.
Disadvantages - Not applicable to all jobs, allocation of merit pay may result in
setting short-term goals rather than important and long-term goals etc.

2. Psychological Appraisals: These appraisals are more directed to assess employees

potential for future performance rather than the past one. It is done in the form of
in-depth interviews, psychological tests, and discussion with supervisors and review
of other evaluations. It is more focused on employees emotional, intellectual, and
motivational and other personal characteristics affecting his performance. This
approach is slow and costly and may be useful for bright young members who may
have considerable potential.

3. Assessment Centers: An assessment center is a central location where managers

may come together to have their participation in job related exercises evaluated by
trained observers. Assessees are requested to participate in in-basket exercises, work
groups, computer simulations, role playing and other similar activities which require
same attributes for successful performance in actual job. The characteristics assessed
in assessment center can
be assertiveness, persuasive ability, communicating ability, planning and
organizational ability, self confidence, resistance to stress, energy level, decision
making, sensitivity to feelings, administrative ability, creativity and mental alertness
etc.
Advantages - well-conducted assessment center can achieve better forecasts of
future performance and progress than other methods of appraisals. Also reliability,
content validity
and predictive ability are said to be high in assessment centers. The tests also make
sure that the wrong people are not hired or promoted.
Disadvantages - Costs of employees traveling and lodging, psychologists, ratings
strongly influenced by assessee's inter-personal skills. Solid performers may feel
suffocated in simulated situations. Those who are not selected for this also may get
affected.

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4.360-Degree Feedback: It is a technique which is systematic collection of
performance data on an individual group, derived from a number of stakeholders like
immediate supervisors, team members, customers, peers and self. In fact anyone
who has useful information on how an employee does a job may be one of the
appraisers. This technique is highly useful in terms of broader perspective, greater
self-development and multi-source feedback is useful. 360-degree appraisals are
useful to measure inter-personal skills, customer satisfaction and team building skills.
However on the negative side, receiving feedback from multiple sources can be
intimidating, threatening etc. Multiple raters may be less adept at providing balanced
and objective feedback.

ROLE OF PERFORMANCE APPRAISAL IN HR

Human resource department plays an important role in designing and implementing

performance appraisals. Infact, the HR team acts as mediator between the functional
heads or reviewing authorities and the employee. It is the human resource team's
responsibility to ensure a smooth implementation of the appraisal process.
Every individual is rated based on the performance exhibited by them. So in HR,
which delt with human resources it's very essential and crucial to check the
performance. Performance appraisal plays a significant role in HR for managing,
developing, and improving employees and organization as well as its performance.

The first and the foremost responsibility of HR team are to design the entire appraisal
process. Make sure the process is simple and does not take too much time. The HR
team needs to know the responsibilities assigned to each and every employee for
them to create and design a system where their overall achievements can be rated
with respect to their key responsibility areas. An individual representing the MIS
team cannot rate himself/herself onthe KRAs of a marketing professional. As a HR
professional, you need to sit with the functional heads of all departments so that you
exactly know what all tasks have been assigned to which all team members.

The employees need to be fully aware of the performance appraisal process. The
criterion of performance appraisal needs to be very clear and transparent. Provide
proper training to employees so that they take the entire process of performance
appraisal gracefully and sportingly. You need to make them understand that
appraisals are done not to downgrade or insult anyone but help individuals set
realistic goals and expectations for themselves and work towards it. There are
employees who do not appreciate the idea of performance appraisal and feel it is

45
just a waste of time and energy filling elaborate forms. It is the HR's responsibility to
change this perception. Performance appraisal is just not a method to increase one's
salary but provide feedbacks to employees and guide them accordingly. Call
employees on a common platform and make them understand the importance of
appraisal process and how would it help them in their respective careers.

The HR team also needs to sit with the reviewing authorities to ensure appraisals are
done on time and only the deserving employees get the benefits. Appraisals should
not be for everyone but only for those who have worked really hard all through the
year. You need to help and sometimes also guide the managers and supervisors so
that a fair appraisal is done and no deserving employee is at loss. You can also give
your valuable feedback to the functional heads based on your day to day interaction
with the employee concerned. Apart from his her routine work, how one behaves at
the workplace, what is his relation with superiors/ fellow workers, punctuality, and
discipline also play an important role in performance appraisal.

Once the appraisal is done, it is your responsibility to hand over the increment letters
or review reports. Make sure the letter is handed only to the employee concerned
and not to anyone else. Appraisals and increments ought not to be discussed in
public. Your role does not end here. As a HR professional, you need to ensure
employees are satisfied with the appraisal process. You need to explain an individual
as to why he/she has got or not got a salary hike Immediately arrange a meeting with
his superior if you are not able to handle the situation or find a solution.

ROLE OF PERFORMANCE APPRAISAL IN MOTIVATION

Motivation greatly helps in enhancing the performance. Motivated employeeswill

put maximum efforts for achieving the organizational goals. Motivation enables and
encourages them to show better performance which results in high productivity. It
acts as a stimulant for improving the performance of employees which provide great
success and growth. The employees should be given more incentives for increasing
the performance. Different motivational techniques like financial motivators and non
financial motivators like Recognition, Participation, Status, Competition, Job
enrichment greatly helps in enriching the performance appraisal.

Motivation occupies an important place and position in thewhole management

process. This technique can be used fruitfully for encouraging workers to make
positive contribution for achieving organizational objectives. Motivation is necessary

46
as human nature needs some sort of inducement, encouragement or incentive in
order to get better performance.
Motivation of employee's offers may benefits to the organization and also to the
employees.
Motivation acts as a technique for improving the performance of employees working
at different levels.

Motivation of employees is one function which every manager has to perform along
with other managerial functions. A manager has to function as a friend and
motivator of his subordinates. Motivation is useful in all aspects of life and even our
family life. The same is the case with business.

ROLE OF PERFORMANCE APPRAISAL

JOB SATISFACTION

When the employees are satisfied with the job that they are doing which include
good working conditions, benefits and incentives, recreation facilities, etc. They will
work more.
Hence their performance can be apprised which results in high productivity, growth,
and success. Satisfied job enable employees to provide their best talent and to
enhance their performance. Job satisfaction can be defined as that which gives
employees the motivation to continue with the daily work or makes him actually
want to go to work or gives him an urge to take up a new assignment or project. One
of the factors that leads to job satisfaction is recognition and encouragement where
an organization has a good evaluation system and theemployee's work is recognized
and then he is encouraged and motivated to continue contributing to the
organization.

According to Vroom (1964), job satisfaction focuses on the role of the employee in
his or her workplace hence defines job satisfaction as effective orientations on the
part of individuals towards work roles which they are currently occupying.
Job satisfaction should be considered as one of the main factors when looking at
efficiency and effectiveness of organizations. The new managerial paradigm that
insists employees are to be treated and considered as human beings who have their
own needs, personal desires and wants is an excellent indicator of the importance of
job satisfaction in many organization.

47
The performance appraisal systems increase the fairness and transparency of the
evaluation process and guide individuals and supervisors towards targeted
improvement strategies. They also protect both the employee and the institution
from potential bias and ensure that employees receive fair and accurate feedback.
However these should be tailored to suit the
necessary employee aspirations as noted by the department or organization at large.
If staff is to have positive attitude towards the appraisal system, the performance
appraisal should
undergo regular review and improvement. For example, focus groups or surveys
could be conducted to gauge staff perceptions of the appraisal process. Successful
performance appraisal depends to some extent, on the ability of supervisors to make
sound assessments and on the careful compilation of pay structure. A good scheme
should result in a reduction in labour turnover and an increase in morale and output.

SAMPLING PLAN

Sampling method - Direct contact and questioner

Sample Size = 20 Employees

DATA COLLECTION

Data Sources:

• Secondary Data through Internet

• Primary Data through Questionnaire
• Contact Method
• Personal Interaction

Primary data
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• Direct personal observation
• Indirect oral interviews
• Information through manuals& websites
• Information through questionnaire filled by respondents

Secondary data

Secondary data means that are already available they refer to the data which have
already been collected and analyzed by someone else when the researcher utilizes
secondary data that has to look into various sources where he can obtain. In this case
he certainly not confronted with the problems that are usually data nor did
unpublished data associate data associated with the collection of original data
secondary data may either be published.

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 Chapter – 5
DATA ANALYSIS AND
INTERPRETATION

50
Performance Appraisal is the important aspect in the organization to evaluate the employees
performance. It helps in understanding the employees work culture, involvement, and
satisfaction. It helps the organization in deciding employee's promotion, transfer, incentives,
pay increase.
During my efforts to find out the position of performance appraisal at SOLITAIRE INFOSYS,, I
took the support of a questionnaire (Annex.-I). The employee's respondent to the questions
differently on the same issues even. It also revealed that certain employees are not aware of
the performance appraisal policy of the. However, to make the findings more elaborate,
explain it with the help of pie charts. The pie-charts refer to each question and its finding
separately

1. Are you aware with the current "Performance Appraisal system" of SOLITAIRE INFOSYS?
(a) Yes
(b) No

90%
Aware

Unaware 10%

Awareness of Performance appraisal system

Aware Unaware

10%

90%

Interpretation:

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This pie chart is shows about 90% of officers are aware of current performance appraisal
system
& 10% are not aware of current PAR System. The position has also depicted in the chart.
Awareness of performance appraisal system motivates to do the people in a better way.
Therefore, it is necessary that the management make all the employees aware of their
appraisal systems.

2. Performance Appraisal of Employee Is Assessed By

(a)Point system

(c) Grade system

(b) Mark system

(d) Not aware

PA of employee is assessed by

Point System 85%

Mark System 10%

Grade System 5%

Not Aware 0%

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 PA of employee is assessed by

Point system Mark system Grade system Not aware

1.2

5
10

85

Interpretation:

About 85% of employees performance appraisals is assessed by point system, 10%through

Mark System,5% of grade system, and 0% are not aware of any group. This shows that
employees are assessed by different methods.

3. Task setting by appraise and appraiser provides objective while appraising the
performance appraisal of the appraise

(a)Agree

(b) partially agree

(c)Neutral

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(d) disagree

Task Setting

Agree 50%

Partially agree 30%

Neutral 10%

Disagree 2%

Task setting
Agree partially agree Neutral Disagree

1.2 Sales

10

30 50

Interpretation:

54
About 50% of employees agree that task Setting provides objectives in appraising their
performance. Less than 30% of the employees are partially agreed with the statement and
10% are neutral & 2% are disagree and not fill the questionnaire.

4. Whether the quarterly task setting assignment Completed by the 15th of first month of
each quarter. if no give reason.
(a) Yes
(b) No

Quarterly task setting assignment completed

Yes 95%

No 5%

Quarterly task setting assignment completed

Quarterly task setting assigment completed

100 95

90

80

70

60

50

40

30

20

10 5

55
Interpretation:

About 95% employees says yes for completing Quarterly Task setting in time, rest due to
some reason it's not completed in time, such cases lack of seriousness &ambiguity.5%says
no for completing Quarterly Task setting in time.

5. Self-Appraisal System proves to be effective while appraising the appraise

(a)Agree
(c)Neutral
(b) Partially agree
(d) Disagree

Self - Appraisal System

Agree 60%

Partially agree 20%

Neutral 10%

Disagree 10%

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 Self Appraisal System

Agree Partially Agree Neutral Disagree

10

10

20 60

Interpretation:

Above 60% of the employee agree that self-appraisal system proves to be effective, 20% are
partially agree and rest of officers do not completely agree with it.

6. Who in your opinion should be the responsible for ensuring objectivity and reducing
biasness in the "Performance Appraisal" system?

(a) Appraiser and Appraisee.

(b) Appraiser, Appraisee& peer.
(c) Appraiser, Appraisee, Peer, & Subordinates.

57
 Ensuring objectivity and reducing biasness in the
Performance Appraisal system

Appraiser and Appraisee 78%

Appraiser, Appraisee& peer. 10%

Appraiser, Appraisee, Peer, 10%

& Subordinates.

Blank questionnaire 2%

Ensuring objectivity and reducing biasness the

"Performance Appraisal system

Appraiser and Appraisee Appraiser Appraisee & peer.

Appraisee, Peer, & Subordinates Blank questionnaire

2
10

10

78

58
 Chapter – 6
CONCLUSION & SUGGESTIONS

59
 FINDINGS

1) Presence of a firmly implemented career plan- good sense of growth

2) High proportion of routine work- during training and immediately after.
3) Organization climate-

• Well analyzed goals are set.

• Good and effective performance appraisal strategies applied.
• All the strategies are fair and objective.
• The employees are well aware of what is expected of them.
• Proper feedback is not given to the management staff.
• Suggestions and innovations are not rewarded.
• Supervisors are patient with the employees' problems.
• Good performance leads to annual increments and promotions.
• Training and development programs are not very effective and helpful.
• The purpose of Performance Appraisal System followed in the company is fulfilled.

SUGGESTIONS

• Transparent career planning for all officers.

• Informal calling as and when they need.
• Giving chance in decision making.
• Reward for employee work.
• Proper interactions with seniors.

60
• Effective training and development programs should be held.
• Improve competency of the workers.
• The company should concentrate more on individual development.

CONCLUSION

The study reveals that all the employees are not aware of the Performance Appraisal system.
As the performance appraisal system motivates the employees to achieve the goals, the
management should make the systems of Performance appraisal more clearly to the
employees.
However, SOLITAIRE INFOSYS lately has linked the performance bonus system which is linked
to the performance appraisal rating of the employees.
Technological advances mean that performance management is no longer an isolated HR
initiative and can be integrated into our day-to-day lives.
Based on the vast study & analysis I can say that the Top management role needs
tremendous change towards the role of facilitator. Positive performance appraisal for an
organization is an asset, whereas negative the liability the same way as good employees are
assets and bad a liability. Positive performance appraisal, whereas motivate the people to
improve on the other hand give an opportunity to the corporate houses to identify the area
of improvement/development in their assignments.
At SOLITAIRE INFOSYS, I find that well analyzed goals are set and effective performance
appraisal strategies applied. All the strategies are fair and objective. Almost all the
employees are well aware of what is expected of them, except the lower rank employees.
There is need to reward the innovations and suggestions on merits. There is need of
constructive analysis of performance appraisal while deciding the training.

61
 BIBLIOGRAPHY

• Websites:-
• www.slinfy.com
• https://en.wikipedia.org
• https://www.linkedin.com
• http://www.managementstudyguide.com/human-resource-management.htm
• www.helpme.com
• www.equitymaster.com
• https://www.enterprisecanadanetwork.ca
• http://imahd.ernet.in
• http://ficci.in

62
 Questionnaire

1. Are you aware with the current "Performance Appraisal system" of SOLITAIRE INFOSYS?
(a) Yes
(b) No

2. Performance Appraisal of Employee Is Assessed By

(a)Point system
(b)Mark system
(c)Grade system
(d)Not aware

3. Task setting by appraise and appraiser provides objective while appraising the
performance appraisal of the appraise.
(a) Agree
(b) Partially agree
(c)Neutral
(d) disagree

4. Whether the quarterly task setting assignment completed by the 15"of first month of each
quarter if no give the reason
(a) Yes
(b)No

5. Self-Appraisal System proves to be effective while appraising the appraise.

(a)Agree

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(c)Neutral
(b)Partially agree
(d) Disagree

6. Who in your opinion should be the responsible for ensuring objectivity and reducing
biasness the "Performance Appraisal" system?
(a)Appraise and Appraisee.
(b)Appraiser, Appraisee& peer.
(c)Appraiser, Appraisee, Peers, & Subordinat

7. Skill possessed by an Appraiser vary as the moves from one grade to another.
(a)Agree
(c)Neutral
(b) Partially agree
(d) Disagree

8. Are you getting regular feedback on your performance from your Appraisal?
(a) Yes
(b) No

9. Feedback is beneficial for improving your performance.

(a) Agree
(b) Partially agree
(c) Neutral (d) Disagree

10. Current "Performance Appraisal system is an effective tool for evaluating the employee
performance.
(a) Agree
(b) Partially agree
(d) Neutral

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(d) Disagree

11. Does current "Performance Appraisal" system reflect the training need of anemployee?
(a) Yes
(b)No

12. What is your opinion is the relevance "Performance Appraisal" system?

(A)Deciding promotion
(c) Training & development
(b) Deciding incentives
(d) programme Succession planning

13. The existing "Performance Appraisal" system ensures due recognition talented employee
in terms of promotion, rewards and others
(a)Agree
(b) Partially agree
(c) Neutral
(d) Disagree

14. Do you think that existing "Performance Appraisal" system is help full in wholesome
development of employee?
(a) Agree
(b) Partially agree
(c)Neutral
(d) Disagree

65