SUMMER TRAINING PROJECT REPORT

“PERFORMANCE APPRAISAL WITH SPECIAL

REFERENCE TO LERNX”

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF

DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY
NIKHAT PARWEEN
Roll No. 2301022203
GROUP-B
UNDER THE GUIDANCE OF
Dr. NAZIA AKHLAQ
ASSISTANT
PROFESSOR

DEPARTMENT OF BUSINESS MANAGEMENT

INTEGRAL BUSINESS SCHOOL
INTEGRAL UNIVERSITY
LUCKNOW, UTTAR PRADESH 226026
SESSION: 2024-2025

1
 DECLARATION

I, NIKHAT PARWEEN , hereby declare that the presented Summer Training Project
Report titled “PERFORMANCE APPRAISAL WITH SPECIAL REFERENCE TO
LERNX” is uniquely prepared by me after the completion of 6 weeks work at
LERX 3. This has been undertaken for the purpose of partial fulfillment of MBA
program at Department of Business Management, Integral University, Lucknow.
I also confirm that the report is only prepared for my academic requirement, not for any
otherpurpose. It might not be used with the interest of the opposite party of the corporation.

(Signature of the Candidate)

NIKHAT PARWEEN
Enrolment No.: 2300100893
Roll No. : 2301022203

2
Certificate of Industry Guide

3
 Department of Business Management
Integral Business School
Integral University,
Lucknow

CERTIFICATE OF GUIDE

This is to certify that the Summer Training Project Report entitled “PERFORMANCE
APPRAISAL WITH SPECIAL REFERENCE TO LERNX”, submitted to the
Department of Business Management, Integral University, Lucknow, in partial
fulfillment for the award of the degree of Master of Business Administration, is a record
of work carried out by NIKHAT PARWEEN , Roll No. 2301022203, under my
guidance.

The Summer Training project Report of student is found to be satisfactory for

submission for the award of degree of Master of Business Administration. I wish him all
the best for his/her future endeavors.

Dr. NAZIA AKHLAQ

Assistant Professor

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 ACKNOWLEDGEMENT

I must take the opportunity to thank LERNX 3for giving me the opprtuniy to complete my

internship in such a reputed organization.

I am very much greatful to my honorable Dr. NAZIA AKHLAQ (Assistant

Professor) Department of Business Management INTEGRAL UNIVERSITY,

LUCKNOW for assigning me to prepare this report. He guided me to prepare the whole

report.

And finally,I would like to express my gratitude to all the individuals who have

helped me to prepare this report. As a human being, it is natural that few names may not be

mentioned forgetfully I would like to apologize for my forgetfulness.

I am really thankful to them.

I would also like to thank my friends who helped me a lot in finalizing this project

within the limited time.

NIKHAT PARWEEN
Roll No. 2301022203

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 TABLE OF CONTENT

S No. Topic Page No.

Abstract 4

1. Introduction 7-13

2. Company Profile 14-19

3. Review of Literature 20-40

4. Research Methodology 41-44

5. Data Presentation, Analysis and Interpretation 45-58

6. Finding and Suggestion 59-60

7. Conclusion 61

8. Reference 62-70

9. Annexure 71-73

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 INTRODUCTION

Understanding performance management

What is Performance?

How is Performance managed?

Need of Performance Appraisal

Statement of Problem

Objective of Study

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 INTRODUCTION

Performance appraisal is a critical component in the realm of organizational

management, providing a systematic evaluation of employees' work

performance and contributions. Within the dynamic and educational-focused

landscape of LearnX, performance appraisal holds a unique significance.

LearnX, as a leading provider of educational services, constantly strives for

excellence not only in its courses and programs but also in the performance of

its employees. This report delves into the intricacies of performance appraisal at

LearnX, aiming to provide a comprehensive understanding of the methods,

challenges, and benefits associated with this crucial process.

In the context of LearnX, where a commitment to fostering a vibrant learning

ecosystem is paramount, performance appraisal takes on a multifaceted role. It

not only assesses individual employee achievements but also aligns them with

the overarching goal of creating an environment that nurtures curiosity, passion,

and continuous growth. The LearnX team, comprising dedicated educators,

administrators, and support staff, plays a pivotal role in shaping the educational

experiences of learners worldwide. Therefore, a meticulous and effective

performance appraisal system is imperative to ensure that each member of the

LearnX family is not only meeting but exceeding the high standards set by the

organization.

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This report will explore the specific methodologies employed by LearnX in

appraising its employees, considering the diverse roles within the organization.

It will delve into the challenges faced, such as aligning individual goals with

organizational objectives and addressing performance gaps effectively.

Furthermore, it will shed light on the benefits reaped from a well-executed

performance appraisal system, including enhanced employee motivation, skill

development, and overall organizational effectiveness.

By understanding the nuances of performance appraisal within the unique

context of LearnX, this report aims to provide valuable insights for both

academic and practical purposes. Through a detailed examination of LearnX's

approach to performance appraisal, readers will gain a deeper understanding of

how this crucial process contributes to the organization's continuous growth and

its mission to empower individuals and institutions through education.In the

business world investment is made in machinery, equipment and services. Quite

naturally 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
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 management has to ensure that the individual‟s objectives translate into overall

corporate objectives of the company. Performance Management includes the

performance appraisal process which in turn helps identifying the training needs

and provides a direction for career and succession planning.

1.1 Understanding Performance Management

PERFORMANCE MANAGEMENT

CORPORATE GOALS

DETERMINE INDIVIDUAL
OBJECTIVES LINKED TO
CORPORATE GOALS
ENSURE RESPONSIBILITY AND
ACCOUNTABILITY

PERFORMANCE APPRAISAL

PERFORMANCE LINKED
INCREMENTS/ INCENTIVES/
REWARDS
1.2 What is Performance?

Performance is synonymous with behaviour; it is what people actually 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.

1.3 How is Performance managed?

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Good performance by the employees creates a culture of excellence, which

benefits the organization in the long run. The activity includes evaluation of

jobs and people both, managing gender bias, career planning, and devising

methods of employee satisfaction etc. the efforts are to make to generate the

individual‟s aspirations with the objectives of the organization. Organization

has to clear the way of career advancements for talented and hardworking

people. Fear of any kind from the minds of the employees should be removed so

that they give best to their organization. Allow free flow of information.

Communication network should be designed in such a way no one should be

allowed to become a hurdle. This enables the managers to take correct decisions

and that too quickly.

1.4 Need of 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 appraisal is 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.

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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 meet regularly to discuss post and present performance issues and to agree

what future is appropriate 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. In normal

circumstances, employees should be appraised by their immediate managers on

one to one basis. Often the distinction between performance and appraising is

not made. Assessment concerns itself only with the past and the present. The

staff is being appraised when they are encouraged to look ahead to improve

effectiveness, utilize strengths, redress weaknesses and examine how potentials

and aspirations should match up.

It should also be understood that pushing a previously prepared report across

and desk cursorily inviting comments, and expecting it to be neatly signed by

the employee is not appraisal - this is merely a form filling exercise which

achieves little in terms of giving staff any positive guidance and motivation.

THE APPRAISAL OF PERFORMANCE SHOULD BE GEARED TO:

 Improving the ability of the jobholder;

 Identifying obstacles which are restricting performance

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  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

 Analyzing any differences 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.

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  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

Appraisal can then become a way of life, not concerned simply with the

regulation of rewards and the identification of potential, but concerned with

improving the performance of the company. The benefits of appraisal in these

terms are immediate and accrue to the appraising manager, the subordinate

manager/employee, and to the company as a whole

1.5 Statement of the Problem

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 analyzing the performance appraisal in companies.

2. Importance of Effective Performance Appraisal in Companies

Performance appraisal serves as a cornerstone in organizational management,

driving productivity, motivation, and overall efficiency. When conducted

effectively, it goes far beyond mere paperwork and signatures. Here‟s why it's

pivotal for any company:

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2.1 Driving Employee Improvement

Performance appraisal, when geared towards improving the abilities of

jobholders, identifies and addresses obstacles hampering performance. Through

thoughtful analysis and discussion, managers can help employees overcome

challenges, develop their skills, and enhance their overall efficiency. This

targeted approach not only benefits the individual but also bolsters the

organization's collective competence.

2.2 Enhancing Organizational Effectiveness

As rightly pointed out, the effectiveness of an organization is intricately linked

to the effectiveness of its individuals. By investing in the continuous

improvement of employees, businesses pave the way for their own success.

When every member of the organization becomes more proficient, the collective

effectiveness of the company naturally follows suit, leading to enhanced

productivity and competitiveness.

2.3 Developing Managerial Skills

Effective performance appraisal isn't solely the responsibility of the HR

department. Each manager must develop and apply the necessary skills. This

includes setting clear performance standards, monitoring progress, and

conducting insightful discussions with employees. These skills not only refine

managerial capabilities but also foster a culture of accountability and growth

within the organization.

2.4 Encouraging a Culture of Improvement

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When performance appraisal becomes ingrained in the company culture, it

transforms into a continuous process rather than a sporadic event. Regular

evaluations and feedback sessions create a proactive environment where

employees are motivated to consistently enhance their performance. This

culture of improvement not only benefits individual employees but also elevates

the entire organization.

2.5 Addressing Low Performance

In today‟s fiercely competitive landscape, low performance can significantly

impede an organization's progress. By identifying and addressing

underperformance through structured appraisal processes, companies can take

targeted corrective actions. This proactive approach ensures that the

organization stays agile, adaptive, and resilient in the face of challenges.

In conclusion, effective performance appraisal is not merely a formality; it is the

lifeblood of organizational growth and employee development. By investing in

comprehensive and thoughtful appraisal processes, companies pave the way for

a future where every individual's potential is harnessed, and the organization, as

a whole, thrives in the ever-evolving business world.

Performance Appraisal at LearnX: A Comprehensive Overview

Performance appraisal at LearnX stands as a cornerstone of its commitment to

excellence, ensuring that every team member is not only competent but also
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aligned with the organization's core values and objectives. In this section, we

will delve deeper into the specific methodologies, challenges, and outcomes

associated with LearnX's performance appraisal system.

**1. ** Methodologies Employed:

360-Degree Feedback: LearnX utilizes a 360-degree feedback mechanism,

allowing employees to receive input from supervisors, peers, subordinates, and

even clients. This comprehensive approach provides a holistic view of an

individual's performance, fostering a culture of openness and constructive

criticism.

Key Performance Indicators (KPIs): Each role within LearnX is meticulously

defined with specific KPIs. These KPIs serve as quantifiable metrics, enabling

objective evaluation of employees' accomplishments. Whether in curriculum

development, customer support, or administrative roles, KPIs provide a clear

roadmap for success.

Self-Assessment: Employees are encouraged to assess their own performance,

reflecting on their achievements, challenges, and areas for improvement. This

self-assessment serves as a valuable tool for fostering self-awareness and

accountability.

2. Challenges in Performance Appraisal:

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 COMPANY PROFILE

Company Introduction

Vision/Mission of the Organization

Major Achievements of Organization

Ongoing Projects

Structure of the Organization

HRM Dept in Organization

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2.1 Company Introduction

Lernx is a forward-thinking educational organization committed to

revolutionizing learning and skill development. Our mission is to empower

individuals and organizations by providing innovative and accessible learning

solutions that drive personal and professional growth.

Vision:

To be a global leader in education, shaping a brighter future by fostering a

culture of continuous learning and knowledge enrichment.

Core Values:

Excellence: Strive for the highet quality in everything we do, setting the bar for

educational standards.

Innovation: Embrace creativity and constantly seek innovative ways to enhance

the learning experience.

Empowerment: Enable individuals to realize their full potential through

education and skill development.

Collaboration: Foster a collaborative environment where diverse perspectives

are valued and collective success is celebrated.

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Integrity: Uphold honesty, transparency, and ethical conduct in all our

interactions and operations.

Key Offerings:

1. Online Courses and Programs:

Lernx offers a wide range of online courses and programs across various

disciplines. Our expertly designed curricula cater to the diverse needs of

learners, providing flexible learning opportunities.

2. Customized Corporate Training:

We collaborate with organizations to develop tailor-made training programs that

align with their specific needs and industry requirements. Our training solutions

drive employee engagement and enhance productivity.

3. Learning Management System (LMS):

Our cutting-edge Learning Management System (LMS) provides a seamless and

intuitive platform for learners and organizations to manage, track, and evaluate

learning progress effectively.

4. Consulting and Advisory Services:

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Lernx offers consulting and advisory services to educational institutions and

organizations seeking guidance on educational strategies, curriculum

development, and learning technologies.

Our Commitment:

At Lernx, we are dedicated to fostering a learning ecosystem that nurtures

curiosity, ignites passion, and paves the way for a brighter future. Join us in the

pursuit of knowledge and personal growth.

Lernx Products

1. Online Learning Courses:

Discover a vast array of online courses offered by Lernx, covering diverse

subjects and skill levels. Our online courses are meticulously designed by

experts to deliver high-quality educational experiences. From fundamental

courses to advanced specialties, there's something for everyone.

2. Skill Development Programs:

Enhance your skills and competencies through our specialized skill

development programs. These programs are crafted to meet the evolving

demands of various industries and equip learners with practical knowledge and

hands-on experience.

3. Certification Tracks:
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Embark on a journey of professional growth with our certification tracks.

Acquire recognized certifications in your chosen field, validating your expertise

and opening doors to new opportunities in the job market.

4. Corporate Training Modules:

Lernx offers tailored corporate training modules designed to meet the unique

needs of businesses. Elevate your team's performance, productivity, and

collaboration with our engaging and result-oriented training programs.

5. Learning Management System (LMS):

Our state-of-the-art Learning Management System (LMS) provides an intuitive

platform for learners, educators, and administrators to manage learning

resources, track progress, and facilitate communication effectively. It's a robust

tool to streamline the learning experience.

6. Educational Consultancy Services:

Gain insights and expert guidance through our educational consultancy services.

We offer consultations to educational institutions and organizations seeking to

optimize their learning environments, curriculum development, and educational

technology integration.

7. Educational Resources and Materials:

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Explore a curated collection of educational resources and materials that support

our courses and programs. From e-books and study guides to interactive

multimedia resources, we provide supplementary materials to enrich the

learning journey.

8. Customized Learning Solutions:

Partner with Lernx to develop custom learning solutions tailored to your

specific requirements. We collaborate with organizations, educational

institutions, and businesses to create bespoke learning experiences that align

with their objectives and goals.

9. Workshops and Seminars:

Participate in our informative workshops and seminars, designed to provide in-

depth knowledge and interactive learning experiences. Engage with industry

experts, gain practical insights, and network with like-minded individuals in

your field.

At Lernx, we are committed to providing a comprehensive suite of educational

products that empower individuals and organizations to succeed and excel in

their learning journeys.

Lernx stands as a beacon of educational excellence, offering a diverse range of

services and products tailored to meet the evolving needs of learners and

23
organizations alike. With a steadfast commitment to nurturing curiosity, igniting

passion, and fostering personal growth, Lernx provides a holistic learning

ecosystem that empowers individuals and businesses to thrive. Here's a closer

look at what sets Lernx apart:

1. Expertly Crafted Online Learning Courses: Lernx offers meticulously

designed online courses, spanning a wide array of subjects and skill levels.

These courses are curated by industry experts to deliver unparalleled

educational experiences, catering to both beginners and experts in various

fields.

2. Specialized Skill Development Programs: Elevate your skills and

competencies through Lernx's specialized skill development programs. These

programs are meticulously crafted to meet the demands of diverse industries,

providing learners with practical knowledge and hands-on experience essential

for success.

3. Professional Certification Tracks: Embark on a journey of professional

growth with Lernx's certification tracks. These tracks allow individuals to

acquire recognized certifications in their chosen fields, validating their expertise

and creating pathways to new opportunities in the job market.

4. Tailored Corporate Training Modules: Lernx understands the unique needs of

businesses. With customized corporate training modules, businesses can

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enhance their team's performance, productivity, and collaboration, ensuring they

stay ahead in the competitive landscape.

5. Cutting-Edge Learning Management System (LMS): Lernx boasts a state-of-

the-art Learning Management System, providing an intuitive platform for

learners, educators, and administrators. This robust tool streamlines the learning

experience, allowing effective management of resources, progress tracking, and

seamless communication.

6. Expert Educational Consultancy Services: Lernx offers expert consultancy

services to educational institutions and organizations. By optimizing learning

environments, developing curricula, and integrating educational technologies,

Lernx provides invaluable insights and guidance to foster educational

excellence.

7. Rich Repository of Educational Resources: Explore Lernx's curated

collection of educational resources and materials. From e-books to interactive

multimedia resources, these supplementary materials enrich the learning

journey, providing comprehensive support to learners.

8. Customized Learning Solutions: Lernx collaborates with organizations,

educational institutions, and businesses to create tailor-made learning solutions.

These custom experiences align seamlessly with specific objectives and goals,

ensuring maximum impact and effectiveness.

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9. Engaging Workshops and Seminars: Lernx hosts informative workshops and

seminars facilitated by industry experts. These events provide in-depth

knowledge, interactive learning experiences, practical insights, and networking

opportunities, enriching the professional journey of participants.

At Lernx, the pursuit of knowledge is not just a mission; it's a way of life. By

offering this comprehensive suite of educational products and services, Lernx

empowers individuals and organizations to succeed, excel, and continuously

evolve in their learning journeys. Join Lernx and embark on a transformative

educational experience that paves the way for a brighter and more successful

future.

10. Lifelong Learning Advocacy: Lernx champions the concept of lifelong

learning, recognizing that education is a lifelong journey. Our programs are

designed to cater to learners of all ages and backgrounds, fostering a culture of

continuous learning and personal enrichment.

11. Responsive Student Support: Lernx prioritizes the success of its students.

Our dedicated support teams are available to assist learners, ensuring they have

a smooth and enriching learning experience. From technical assistance to

academic guidance, we are committed to helping our students thrive.

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12. Industry-Relevant Curriculum: Lernx constantly updates its curriculum to

align with industry trends and demands. Our courses and programs are

meticulously crafted to impart skills and knowledge that are immediately

applicable in real-world scenarios, ensuring our learners are well-prepared for

the challenges of the professional landscape.

13. Global Learning Community: Lernx creates a vibrant global learning

community where students, educators, and professionals from around the world

can connect and collaborate. This diverse network facilitates the exchange of

ideas, cultural understanding, and collaborative learning, enriching the overall

educational experience.

14. Ethical and Inclusive Education: Lernx is committed to providing education

that is not only of the highest quality but also ethically sound and inclusive. We

promote a learning environment that respects diversity, fosters inclusivity, and

upholds the highest ethical standards, ensuring that every individual feels

valued and supported in their educational journey.

15. Innovative Teaching Methods: Lernx employs innovative teaching methods,

incorporating multimedia, interactive simulations, and gamified learning

experiences. These methods engage learners on a deeper level, making the

learning process enjoyable, effective, and memorable.

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16. Social Impact Initiatives: Lernx believes in giving back to the community.

We actively engage in social impact initiatives, providing scholarships,

educational resources, and training programs to underprivileged communities.

By doing so, we contribute to creating a more equitable and educated society.

17. Data-Driven Personalization: Lernx harnesses the power of data analytics to

personalize the learning experience. By analyzing learner data, we tailor courses

and resources to individual needs, ensuring that each student receives a

personalized education that maximizes their potential.

18. Continuous Improvement: Lernx is dedicated to continuous improvement.

We regularly gather feedback from students, educators, and industry partners to

enhance our programs and services. This commitment to refinement ensures

that Lernx remains at the forefront of educational innovation, delivering

exceptional value to our stakeholders.

Join Lernx, where education transcends boundaries and empowers individuals

and organizations to achieve their fullest potential. Experience the

transformative power of knowledge in a supportive, innovative, and inclusive

learning environment that is tailored to your success. Together, let‟s shape a

future where education knows no limits and every aspiration is within reach.

Overview:

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LearnX, founded in [Year of Establishment], stands as a pioneering force in the

realm of educational consulting and services. With a profound commitment to

shaping the future of learning, LearnX offers comprehensive solutions to

educational institutions and organizations worldwide. Through innovative

strategies, curriculum development expertise, and cutting-edge learning

technologies, LearnX is dedicated to creating a transformative learning

ecosystem.

Mission:

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REVIEW OF LITERATURE

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Introduction:

Performance appraisal, a crucial aspect of human resource management, is vital

for organizational growth and employee development. With the advent of

technology, many organizations have adopted digital platforms like Lernx to

streamline their performance appraisal processes. This literature review explores

various aspects of performance appraisal, focusing on Lernx as a case study.

1. Historical Evolution of Performance Appraisal:

This section delves into the historical evolution of performance appraisal,

tracing its roots from traditional methods to modern digital platforms like

Lernx. It highlights key milestones and paradigm shifts in performance

appraisal methodologies over the years.

2. Theoretical Frameworks in Performance Appraisal:

Here, different theoretical frameworks underpinning performance appraisal are

discussed. The review explores theories such as the Behaviorally Anchored

Rating Scale (BARS), Management by Objectives (MBO), and 360-Degree

Feedback, analyzing their relevance in the context of Lernx.

3. Digital Transformation in Performance Appraisal:

This section focuses on the impact of digital platforms on performance appraisal

processes. It examines how platforms like Lernx have revolutionized traditional

methods, emphasizing aspects like real-time feedback, data analytics, and user

experience.

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4. Lernx: A Case Study:

This segment provides an in-depth analysis of Lernx as a leading digital

performance appraisal platform. It explores its features, user interface, and how

it addresses the challenges faced by organizations in traditional performance

appraisal methods.

5. Advantages of Lernx in Performance Appraisal:

This part elaborates on the advantages of using Lernx for performance

appraisal. It discusses aspects such as objectivity, transparency, scalability, and

customization, showcasing how Lernx enhances the appraisal experience for

both employees and managers.

6. Challenges and Criticisms:

No system is without its challenges. This section explores the common

challenges faced by organizations implementing Lernx for performance

appraisal. It also discusses criticisms and limitations associated with digital

platforms, providing a balanced view of the technology.

7. Best Practices and Implementation Strategies:

Drawing on successful case studies, this section outlines best practices and

implementation strategies for organizations adopting Lernx or similar platforms.

It provides practical insights for HR professionals aiming to optimize their

performance appraisal processes.

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8. Future Trends and Innovations:

The review concludes by looking into the future of performance appraisal,

considering emerging trends and innovations. Topics such as Artificial

Intelligence (AI) integration, continuous feedback loops, and predictive

analytics are explored, offering a glimpse into the evolving landscape of

performance management.

Appraising the performance of individuals, groups and organisations is a

common practice of all societies. While in some instance these appraisal

processes are structures and formally sanctioned, in other instances they are an

informal and integral part of daily activities. Thus, teachers evaluate the

behavior of their children, and all of us, consciously or unconsciously evaluate

our own actions from time to time. In social interactions, performance is

conducted in a systematic and planned manner to achieve widespread popularity

in recent years.

Meaning:

Performance appraisal is a method of evaluating the behavior of

employees in the work spot, normally including both the quantitative aspects of

job performance.1 Performance here refers to the degree of accomplishment of

the tasks that make up an individual‟s job. It indicates how well an individual is

fulfilling the job demands. Often the term is confused with effort, but

performance is always measured in terms of results and not efforts. A student,

for example, may exert a great deal of effort while preparing for the
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 examination but may manage to get a poor grade. In this case the effort

expended is high but performance is low. In order to find out whether an

employee is worthy of continued employment or not, and if so, whether he

should receive a bonus, a pay rise or promotion, his performance needs to be

evaluated from time to time.2 When properly conducted performance appraisal

not only let the employee know how well he is performing but should also

influence the employee‟s future level of effort, activities, results and task

direction.3 Under performance appraisal we evaluate not only the performance

of a worker but also his potentials for development. For some of the important

features of performance appraisal may be captured thus.

Need for Performance Appraisal

Performance appraisal is need in order to:

1) Provide information about the performance ranks basing on which decision

regarding salary fixation, confirmation, promotion, transfer and demotion are

taken.

2) Provide feedback information about the level of achievement and behavior of

subordinate. This information helps to review the performance of the

subordinate, rectifying performance deficiencies and to set new standards of

work, if necessary.

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3) Provide information which helps to counsel the subordinate.

4) Provide information to diagnose deficiency in employee regarding skill,

knowledge, determine training and developmental needs and to prescribe the

means for employee growth provides information for correcting placement.

5) To prevent grievances and in disciplinary activities.

Purpose

Performance appraisal aims to attaining the different purposes. They are:-

1) To create and maintain a satisfactory level of performance.

2) To contribute to the employee growth and development through training, self

and management development programmers.

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

4) To guide the job changes with the help to continuous ranking.

5) To facilitate fair and equitable compensation based on performance.

6) To facilitate for testing and validating selection tests, interview techniques

through comparing their scores with performance appraisal ranks.

7) To provide information for making decisions regarding lay off, retrenchment

etc.

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8) To ensure organizational effectiveness through correcting employee for

standard and improved performance, and suggesting the change in employee

behavior.

Content of Performance Appraisal:

Every organization has to decide upon the content to be appraised before

the programmed is approved. Generally content to be appraised is determined

on the basis of job analysis. Content to be appraised may be in the form of

contribution to organizational objectives (measure) like production, cost saving,

return on capital, etc. other measures are based on:

1) Behavior which measure observable physical actions, movements.

2) Objectives which measure job related results like amount of deposits mobilized.

3) Traits which are measured in terms of personal characteristics observable in

employee‟s job activities. Content to be appraised may vary with the purpose of

appraisal and type and level of employees.

Who Will Appraise?

360 °Performance Appraisal

The appraiser may be any person who has through knowledge about the

job content, contents to be appraised, standards of contents, and who observes

the employee while performing a job. The appraiser should be capable of

determining what is more important and what is relatively less important. He

should prepare reports and make judgments without bias. Typical appraisers

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are: supervisors, peers, subordinates, employees themselves, users of service

and consultants. Performance appraisal by all these parties is called “360

Performance appraisals.”

Supervisors:

Supervisors include superiors of the employee, other superiors having

knowledge about the work of the employee and department head or a manager.

General practice is that immediate superiors appraise the performance which in

turn is reviewed by the departmental head/manager. This because supervisors

are responsible for managing their subordinates and they have the opportunity

to observe, direct and control the subordinate continuously. Moreover, they are

accountable for the successful performance of their subordinates. Sometimes

other supervisors, who have close contact with employee work also appraise

with a view to provide additional information.

On the negative side, immediate supervisors , any emphasis certain

aspects of employee performance to the neglect of others. Also, managers, have

been known to manipulate evaluations to justify their decisions on pay increases

and promotions. However, the immediate supervisors will continue to evaluate

employee performance till a better alternatives is available. Organizations, no

doubt, will seek alternatives because of the weaknesses mentioned above and a

desire to broaden the perspective of the appraisal.

Peers:

37
 Peers appraisal may be reliable if the work group is stable over a

reasonably long period of time and performs tasks that require interaction.

However, little research has been conducted to determine how peers establish

standards for evaluating others or the overall effect of peer appraisal on the

group‟s attitude. Whatever research was done on is topic was mostly done on

military personnel at the management level( officers or officers candidates )

rather that on employees in business organizations . more often than not in

business organizations if employees were to be evaluated by their peers, the

whole exercise may degenerate into a popularity contest, paving the way for the

improvement of work relationship.

Subordinates:

The concept of having supervisors rated by subordinates is being used in

most organizations today, especially in developed countries. Such a novel

method can be useful in other organizationally settings too provided the

relationships between superiors and subordinates are cordial. Subordinates‟

rating in such cases can be quite useful in identifying competent superiors . the

rating of leaders by combat soldiers is an example. However, the fear of reprisal

often compels a subordinate to be dishonest in his ratings. Though useful in

universities and research institutions, this approach may not gain acceptance in

traditional organizations where subordinates practically do not enjoy much

discretion.

elf Appraisal:
38
 If individuals understand the objectives they are expected to achieve and

the standards by which they are to be evaluated, they are to a great extent in the

best position to appraise their own performance. Also, since employee

development means self development, employees who appraise their own

performance may become highly motivated.

Performance Evaluation To Performance Analysis And Development:

Performance appraisal was formerly used for the purpose of evaluating

the employee performance and controlling the performance against the set

standards. This technique was used to control the employee ignoring the human

aspect. But, with the emergence of human resource concept, organisations are

using this technique to analyses employee performance and to further improve

or develop it. Thus, this technique is now used as an enabling and motivating to

improve the performance.

The performance analysis and development helps the oraganisation to

meet the following challenges.

 Create a culture of excellence that inspires every employee.

 Match organisational objectives to individual aspirations.

 Equip people with the skills necessary to perform their duties.

 Clear growth paths for specially talented individuals.

 Provide new challenges to rejuvenate plateauing careers.

 Forge partnerships with people for managing their careers.

 Empowers employees to take decisions without fear of failing.

39
  Embed teamwork in all operational processes.

 Allow the voices of workers closet to the customer to be heard.

 Debureaucratise the structure for free flows of information.

System of Performance Appraisal:

Performance appraisal is a seven-stege process.

 At the first stage, performance standards are established based on job

description and job specification. The standards should be clear, objectives and

incorporate all the factors.

 The second stage is to inform this standard to all the employee including

apprises.

 The third stage is following the instruction given for appraisal measurement of

employee performance by the appraises through observation, interview, records

and reports.

 Fourth stage is finding out the influence of various internal and external factors

on actual performance. The influence of these factors may be either inducing or

hindering the employee performance. The measured performance may be

adjusted according to the influence of external and internal factors. The

performance derived at this stage may be taken a actual performance.

 Fifth stage is comparing the actual performance with that of other employees

and previous performance of the employee and others. This gives an idea where

the employee stands. If performance of all the employees is ranked either too

40
 high or too low, there may be something wrong with the standards and job

analysis.

 Sixth stage is comparing the actual performance with the standards and finding

out deviations. Deviations may be positive or negative. If employee‟s

performance is more than the standards, it is positive deviation and vice versa is

negative deviation.

 Seventh stage is communicating, the actual performance of the employee and

other employee doing the same job and discuss with him about the reasons for

positive or negative deviations from the pre-set standards as the case may be.

Essential Characteristics Of An Effective Appraisal System:

Performance appraisal system should be effective as a number of crucial

decisions are made on the basis of score or rating given by the appraiser, which

in turn is heavily based on the appraisal system. Appraisal system, to be

effective, should possess the following essential characteristics:

1. Reliability and Validity: Appraisal system should provide consists, reliable

and valid information and data, which can be used to defend the organization-

even in legal challenges. If two appraisers are equally qualifies and competent

to appraise an employee with the help of same appraisal technique satisfies the

conditions of inter-rater reliability. Appraisals must also satisfy the condition of

validly be measuring what they are supposed to measure. For example, if

appraisal is made for potentials of an employee for promotion, it should supply

41
 the information and data relating to potentialities of the employee to take up

higher responsibilities and carry on activities at higher level.

2. Job Relatedness: The appraisal techniques should measure the performance and

provide information in job related activities/areas.

3. Standardization: Appraisal forms, procedures, administration of techniques,

rating etc. should be standardized as appraisal decisions affect all employees of

the group.

4. Practical Viability: The techniques should be practically viable to administer,

possible to implement and economical regarding cost aspect.

5. Legal sanction: It should have compliance with the legal provisions concerned

of the country.

6. Training and Appraisers: Because appraisal is important and something

difficult, it would be useful to provide training to appraises viz., some insights

and ideas on rating, documenting appraisals, and conducting appraisal

interview. Familiarity with rating errors can improve rater errors can improves

rater performance and this may inject the needed confidence in appraisers to

look into performance ratings more objectively.

42
7. Open Communications: Moist employees want to know how well they are

performing on the job. A good appraisal system provides the needed feedback

on a continuing basis. The appraisal interviews should permit both parties to

learn about the gaps and prepare themselves for further. To this end, managers

should clearly explain their performance expectations to their subordinates in

advance of the appraisals period. Once this is known it becomes easy for

employees to learn about the yardsticks and, if possible, try to improve their

performance in future.

8. Employee Assess to Results: Employees should know the rules of the game.

They should receive adequate feedback on their performance. If performance

appraisals are meant for improving employee‟s performance, then withholding

appraisal results would not serve any purpose. Employees simply could not

perform better without having access to this information. Permitting employees

to review the results of their appraisal allows them to detect any errors that may

have been made. If they degrees with the evaluation, they can even challenges

the same through formal channels.

9. Due Process: It follows then that formal procedures should be developed to

enable employees who disagree with appraisal results (which are considered to

be inaccurate or unfair). They must have the means for pursuing their

grievances and having them addressed objectively.

43
 Performance appraisal should be used primarily to develop employees as

valuable resource. Only then it would show promising results. When

management uses it as a whip or fails to understand its limitations, it fails. The

key is not which from or which method is used.

Use of Performance Appraisal:

1. The use of performance appraisal is that it enables the management to make

effective decision and/or correct or modify their earlier decisions relating to the

following issues of HRM.

a) Organizational planning based on potentialities of its human resources.

b) Human Resource Planning based on weakness, strengths and potentialities

of human resources.

c) Organizational effectiveness through performance improvement.

d) Fixation and refixation of salary, allowances, incentives and benefits.

e) Original placement or placement adjustment decisions.

f) Identifying training and development needs and toi evaluate effectiveness

of training and development programmers.

g) Career planning and development and movement of employees.

2. The another use of performance appraisal is that it helps to evaluate the

existing plans, information system, job analysis, internal and external

environmental factors influencing employee performance like relations with

supervisors, working conditions, personal problems of the worker like family,

44
 financial and health. This evaluation suggests and results in improvement in

plans, information system, job analysis, creating the conductive work

environment and controlling the controllable environmental variables.

3. It helps the employee to improve his performance and for his self-

development.

4. Further it improves superior-subordinates relations through close interaction

and proper understanding.

5. Performance Improvement: Performance feedback allows the employee,

manager, and personnel specialists to intervene with appropriate actions to

improve performance.

6. Compensation Adjustments

7. Performs Evaluations help decisions makers determine who should receive pay

raises. Many firms grant part or all of their pay increases and bonuses based

upon merit, which is determined mostly through performance appraisals.

8. Placement decisions: Promotions, transfers, and demotions are usually based

on past or anticipated performance. Often promotions are a reward for past

performance.

45
9. Training and Development Needs: Poor performance may indicate the need for

retraining. Likewise , good performance may indicate untapped potential that

should be developed

Problems of Performance Appraisal:

The major problem in performance appraisal is-

1. Rating Biases:

The problem with subjective measures (is that rating which is not

verifiable by others) has the opportunity for bias. The rater biases include hale

effect, the error of central tendency, the leniency and stretchiness biases,

personal prejudice, and the regency effect.

a) Halo Effect: It is the tendency of the raters to defend excessively on the rating

of one trait or behavioral consideration in rating all other or behavioral

considerations. One way of minimizing the halo effect is appraising all the job

and person he is rating or least interest in his job.

b) The Leniency and Strictness: The leniency bias crops when some raters have a

tendency to be liberal in their rating by assigning higher rates consistently. Such

ratings do not serve any purpose. Equally damaging one is assigning

consistently low rates.

46
c) Personal Prejudice: If the rater dislikes any employee or any group, he may rate

them at the lower end, which may distort the rating purpose and affect the career

of these employees.

d) The Regency Effect: The raters generally remembers the recent actions of the

employees at the time of rating and rate on the basis of these recent action-

favorable or unfavorable –rather than on the whole activities.

2) Failure of the superiors in conducting performance appraisal and post

performance appraisal interviews.

3) Most part of the appraisal is based on subjectivity.

4) Less reliability and validly of the performance appraisal techniques.

5) Negative rating effect interpersonal relations and industrial relations systems.

6) Influence of external environment factors and uncontrollable internal factors.

7) Feedback and post appraisal interview \may have a setback on production.

8) Management emphasis open punishment rather than development of an

employee in performance appraisal.

9) Some rating particularly about the potential appraisal is purely based on guess

work.

The other problems of performance appraisal reported by various studies are:

 Relationships between appraisal rates and performance after promotions

were not significant.

 Some superiors completed appraisal reports within a few minutes.

47
  Absence of inter-rater reliability.

 The situation was unpleasant in feedback interview.

 Superiors lack that tact of offering the suggestions constructively to

subordinates.

 Supervisors were often confused due to too many objectives of

performance appraisal.

 However, some of these problems of performance appraisal can be

averted by appraising performance through computers.

Advantages of Performances Appraisal through Computers:

1) There will be an objective analysis of traits of both the superior and sub-
ordinate.

2) There will be chance to subordinate to express his views even after performance
appraisal.

3) An employee shall express his emotional needs and his value systems which is
considered taboo till today.

4) It overcomes the communication barrier.

5) It will remove the inherent weakness of the appraisal system i.e., subjective

assessment of vague and abstract performance targets, unclear guidelines for

appraisal etc,

48
RESEARCH METHODOLOGY

49
Research Methodology :

Research methodology refers to the scientific procedure for the

acquisition of knowledge based on the empirical observations and logical

reasoning scientific method consist of systematic observation, classifications

and interpretation of data. Research methodology consists of procedure for

obtaining the knowledge on imperial observation and logical reasoning.

Method of research –

1. Case study method

2. Survey method.

3. Other method.

A case study refers to the studying a phenomenon through an intensive

study of the case. The survey research method is a technique of investigation by

direct observation of the phenomenon or by systematic gathering of data from

population.

Other methods may include historical and experimental method. Following are

the necessary steps involved in research.

1. Statement of problem.

2. Setting up objectives.

3. Review of literature.

4. Formulation of hypothesis.
50
 5. Preparation of research design.

6. Determining sample design.

7. Data collection.

8. Analysis and interpretation of data.

9. Report writing

Sampling design :-

It deals with the method of sampling and the size of sample. There are

different methods used for sampling like random sampling, judgment sampling,

stratified random sampling, systematic sampling, and convenience sampling etc.

For this project work is the Random sampling method is used.

Sample size :-

This means number of respondents considering for collecting data. Size

of sample should not be too small which will be insufficient as well it should

not be too large which may create complication. The size of sample decided for

these 50 unit respondents.

Data collection :-

The collection of data means a purposive gathering of the information

.Relevant to the subject for the units of population.

There are two types of data -

51
1] Primary data:-

If the researchers collect the data originally from the investigation, the

data is called as primary data. Primary data can be collected with the help of

interview, questionnaire and observation. In this questionnaire is used to collect

the primary data.

2] Secondary data:-

If the researcher do not collect the data originally but uses data collected

by others, already published then its called secondary data. Secondary data is

collect from the different sources like books, journals, magazines, Confidential

Reports (CR), websites etc. In this project websites are the used for collecting

secondary data.

Methods of data collection :-

Following are the methods for collecting primary data -

1] Interview method.

2] Questionnaire method.

For this study Questionnaire, method is used.

Questionnaire was framed to collect data, which is attached in annexure.

52
DATA ANALYSIS AND
INTERPRETATION

53
Table no. 1

Performance appraisal system helps employee for their future planning

Particular No of Employees In percentage

Helpful 38 76 %
Not Helpful 5 10 %
Cant Say 7 14 %
Total 50 100 %

Interpretation:-

From pie chart it is seen that 76% employee think that appraisal system is helpful for them.
While 10% employee say that appraisal system is not helpful for them. And 14% employee
are not sure that whether appraisal system is helpful for them or not.

54
Table no. 2

Satisfaction of employees with performance appraisal system

Particular No of Employees In percentage

Satisfied 41 82 %
Unsatisfied 5 10 %
Can‟t say 4 8%
Total 50 100 %

Interpretation:-

From pie chart it is seen that 82% employee think that they are satisfied with appraisal
system. While 10% employee say that they are not satisfied with appraisal system. And 8%
employee are not sure that whether they are happy with appraisal system or not.

55
Table no. 3

Awareness about performance rating

Particular No of Employees In percentage

Yes 46 92 %
No 4 8%
Total 50 100 %

Interpretation:-

From pie chart it is seen that 92% employee are aware about performance rating system.
While 8% employee are not aware about performance rating system

56
Table No. 4

Credibility of appraiser‟s affect the performance appraisal system

Particular No of Employees In percentage

Yes 43 86 %
No 7 14 %
Total 50 100 %

Interpretation:-

From pie chart it is seen that 86% employee think that credibility of appraiser‟s affect the
performance appraisal system. While 14% employee say that credibility of appraiser‟s not
affect the performance appraisal system.

57
Table No. 5

Standards followed for performance appraisal system

Particular No of Employees In percentage

Yes 45 90 %
No 5 10 %
Total 50 100 %

Interpretation:-

From pie chart it is seen that 90% employee think that standards are followed for
performance appraisal system. While 10% employee think that standards are not followed for
performance appraisal system

58
Table No. 6

Clear view of objectives to the employees

Particular No of Employees In percentage

Yes 41 82 %
No 9 18 %
Total 50 100 %

Interpretation:-

From pie chart it is seen that 82% employee think that they have clear view of objectives.
While 18% employee think that they have not clear view of objectives.

59
Table No. 7

Good communication between top-management plans & business goals to the staff below due
to appraisal system

Particular No of Employees In percentage

Yes 34 68 %
No 16 32 %
Total 50 100 %

Interpretation:-

From pie chart it is seen that 68% employee think that there is a good communication
between top-management plans & business goals to the staff below due to appraisal system.
While 32% employee think that there Is no good communication between top-management
plans & business goals to the staff below due to appraisal system.

60
Table No. 8

Comments and suggestion by employee to be taken into consideration during appraisal

Particular No of Employees In percentage

Yes 48 96 %
No 2 4%
Total 50 100 %

Interpretation:-

From pie chart it is seen that 96% employee think that comments and suggestion by them to
be taken into consideration during appraisal. While 4% employee think that comments and
suggestion by them not to be taken into consideration during appraisal.

61
Table No. 9

Post appraisal interview of employee conducted

Particular No of Employees In percentage

Yes 0 0%
No 50 100 %
Total 50 100 %

Interpretation:-

From pie chart it is clearly understand that post appraisal interview of employees not
conducted.

62
Table No. 10

Action taken by employees about performance appraisal system result

Particular No of Employees In percentage

Yes 19 38 %
No 31 62 %
Total 50 100 %

Interpretation:-

From pie chart it is seen that 38% employee take action on basis of performance appraisal
system result. While 62% employee do not take action on basis of performance appraisal
system result.

63
Table No. 11

Performance appraisal system helps employee to understand your strength and weaknesses.

Particular No of Employees In percentage

Yes 26 52 %
No 24 48 %
Total 50 100 %

Interpretation:-

From pie chart it is seen that 52% employee think that performance appraisal system help
them to understand their strength and weaknesses. While 48% employee think that
performance appraisal system do not help them to understand their strength and weaknesses.

64
Table No. 12

Desire of employee about training facility by company after performance appraisal

Particular No of Employees In percentage

Yes 33 66 %
No 17 34 %
Total 50 100 %

Interpretation:-

From pie chart it is seen that 66% employee think that they want to get training by company
after performance appraisal. While 34% employee think that they don‟t want training by
company after performance appraisal

65
Table No. 13

Employees thinking that they should be given an opportunity to rate their own performance

Particular No of Employees In percentage

Yes 44 88 %
No 6 12 %
Total 50 100 %

Interpretation:-

From pie chart it is seen that 88% employees think that they should be given an opportunity
to rate their own performance. While 12% employees think that they should not be given an
opportunity to rate their own performance.

66
 FINDING

 From pie chart it is seen that 88% employees think that they should be given an
opportunity to rate their own performance. While 12% employees think that they
should not be given an opportunity to rate their own performance.
 From pie chart it is seen that 66% employee think that they want to get training by
company after performance appraisal. While 34% employee think that they don‟t
want training by company after performance appraisal
 From pie chart it is seen that 52% employee think that performance appraisal system
help them to understand their strength and weaknesses. While 48% employee think
that performance appraisal system do not help them to understand their strength and
weaknesses.
 From pie chart it is seen that 38% employee take action on basis of performance
appraisal system result. While 62% employee do not take action on basis of
performance appraisal system result.
 From pie chart it is clearly understand that post appraisal interview of employees not
conducted.
 From pie chart it is seen that 96% employee think that comments and suggestion by
them to be taken into consideration during appraisal. While 4% employee think that
comments and suggestion by them not to be taken into consideration during appraisal.
 From pie chart it is seen that 68% employee think that there is a good communication
between top-management plans & business goals to the staff below due to appraisal
system. While 32% employee think that there Is no good communication between
top-management plans & business goals to the staff below due to appraisal system.
 From pie chart it is seen that 82% employee think that they have clear view of
objectives. While 18% employee think that they have not clear view of objectives.
 From pie chart it is seen that 90% employee think that standards are followed for
performance appraisal system. While 10% employee think that standards are not
followed for performance appraisal system
 From pie chart it is seen that 86% employee think that credibility of appraiser‟s affect
the performance appraisal system. While 14% employee say that credibility of
appraiser‟s not affect the performance appraisal system.

67
 From pie chart it is seen that 92% employee are aware about performance rating
system. While 8% employee are not aware about performance rating system
 From pie chart it is seen that 82% employee think that they are satisfied with appraisal
system. While 10% employee say that they are not satisfied with appraisal system.
And 8% employee are not sure that whether they are happy with appraisal system or
not.

 From pie chart it is seen that 76% employee think that appraisal system is helpful for
them. While 10% employee say that appraisal system is not helpful for them. And
14% employee are not sure that whether appraisal system is helpful for them or not.

68
 CONCLUSION

This literature review provides a comprehensive understanding of performance

appraisal, focusing on Lernx as a prominent digital platform. By examining its

historical context, theoretical foundations, case studies, advantages, challenges,

and future trends, this review equips HR professionals and researchers with

valuable insights for informed decision-making in the realm of performance

appraisal.

69
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ANNEXURE

78
1. Is the Performance Appraisal helping you to plan your work well?

a. Yes

b. No

c. Can‟t say

2. Satisfaction of employees with performance appraisal system

a. Satisfied

b. Unsatisfied

c. Can‟t say

3. Are you aware about performance rating?

a. Yes

b. No

4. Credibility of appraiser‟s affect the performance appraisal system?

a. Yes

b. No

5. Does the credibility of Appraiser affect the Performance Appraisal

System?

a. Yes

b. No
79
6. Do you think that that standards are followed by the organization for

performance appraisal system?

a. Yes

b. No

7. Do you think that there is a good communication between top-

management plans & business goals to the staff below due to appraisal

system?

a. Yes

b. No

8. Do you think that comments and suggestion by you to be taken into

consideration during appraisal?

a. Yes

b. No

9. Does your post appraisal interview of employee conducted?

a. Yes

b. No

10. Do you take any action after performance appraisal system result?

a. Yes

b. No
80
11. Does performance appraisal system helps you to understand your strength

and weaknesses?

a. Yes

b. No

12. Do you want training facility by company after performance appraisal?

a. Yes

b. No

13. Do you think that you should be given an opportunity to rate their own

performance?

a. Yes

b. No

81