HUMAN RESOURCE MANAGEMENT

PROJECT on

PERFORMANCE
APPRAISAL SYSTEM

Submitted to: Submitted By:

Dr. Pampari Venkataswamy TARUNA CHAWLA
Enrol.No.-08BSHYD0892
Section-B
 INDEX

1. Executive Summary ------------------------------------------------------------------------- 3

2. Scope of the Project------------------------------------------------------------------------- 4

3. Introduction----------------------------------------------------------------------------------- 5

4. Process of performance appraisal---------------------------------------------------------- 6

5. Purpose of performance appraisal--------------------------------------------------------- 7

6. When and Who to conduct appraisals------------------------------------------------------ 8

7. What is to be evaluated----------------------------------------------------------------------- 8

8. Elements of an effective appraisal system--- ---------------------------------------------- 9

9. Corporate outlook-------------------------------------------------------------------------------10

10.Conclusion------------------------------------------------------------------------------------- 21

11.References-------------------------------------------------------------------------------------- 22
 EXECUTIVE SUMMARY

This project report is a review based on theory as well as the industry outlook of performance appraisal system
of the organization.

The report starts with the Introduction and Literature Review of performance appraisal system that outlines its
history, definitions, purposes, types, process, methods, appraiser, parameters of evaluation and the essentials of
an effective appraisal system.

Further the performance appraisal system of three companies – Bharti Airtel, Kroll Inc and Cocoa Research
Institute of Savana, collected through various primary and secondary sources have been included in the report
which gives a fair idea of the kind of appraisal system being followed across various corporates.

Last, the conclusions and references has been mentioned.

 SCOPE OF THE STUDY

The project gives an outline of what performance appraisal is and how it should be conducted,
defining the process of appraisal, the person who should be involved in the process and wat
should be the criteria involved in appraisal. The data has been collected fro various websites
which have been mentioned in the references. The methods of appraisal have not been included
in the report confining to the word limit and the practical aspect of the topic has been taken care
by giving information about three corporates that are Bharti Airtel, Kroll Inc and CRIS.

INTRODUCTION
 CONCEPTUAL FRAMEWORK

I. Background:

1. The concept of Performance Appraisal dates back to the First World War and was then called “Merit Rating
Programme”. Over a period of time, this concept has been through an ocean of change. The areas of evaluation
have also changed.

2. According to Carl Heyel, author/editor on management, philosopher and teacher, “performance appraisal is
the process of evaluating the performance and qualifications of the employees in terms of job requirements, for
administrative purposes such as placement, selection and promotion, to provide financial rewards and other
actions which require differential treatment among the members of a group as distinguished from actions
affecting all members equally”.

II.Change:

1. A few decades ago, the employee used to be appraised by his department head. The department head used
to communicate his feedback and comments only to the immediate superior of the employee. Thus the feedback
was kept confidential in nature. As time passed by, the immediate superior started appraising his subordinate’s
performance and sending his confidential report to the department head. These were the periods when the
employee was not included in his appraisal process. The decisions used to be taken by his superiors relating to
his pay hike, promotion etc. Thus the system was non-transparent.

2. The current process of performance appraisal is much more open and gives some scope for self-appraisal by
the employee. The self-appraisal is followed by a joint discussion with superior and then a decision is taken by
the department head on his promotion, pay hike etc. The feedback relating to his performance is directly given
to the employee. Thus performance appraisal process has gone through the phase of non-transparency to
transparency.

PROCESS OF PERFORMANCE APPRAISAL

 PURPOSE OF PERFORMANCE APPRAISAL

The objectives of performance appraisal fall in two categories:

1. Administrative

2. Self-improvement

1. Administrative Objectives

(i) Promotions: This is the most important use of performance appraisal. It is to the common interests of
both the management and employees to promote employees into positions where they can most effectively
utilize their abilities.

(ii) Transfers: In an organization, it may be necessary to consider various types of personnel actions such as
transfers, layoffs, demotions and discharges. Such actions can be justified if they are based on performance
appraisal.

(iii)Training & Development: An appropriate system of performance appraisal can be

helpful in identifying the areas of skills or knowledge in which certain employees are not up to par, thus
pointing out general training deficiencies, which presumable should be corrected by additional training,
discussions or counseling.

(iv)Wage and Salary Administration: In some cases, the wage increases are based on the
performance appraisal reports. In some cases appraisals and seniority are used in combination.

1. Self Improvement Objectives

The system allows the employee to evaluate his performance, identify the areas which he finds need
improvement and based on his personal assessment, take the steps he feels are necessary to improve his
performance.

WHEN AND WHO SHOULD CONDUCT APPRAISALS?

Appraisals typically are conducted once or twice a year, most often annually. For new employees, common
timing is to conduct an appraisal 90 days after employment, again at six months, and annually thereafter.
“Probationary” or new employees, or those who are new and in a trial period, should be evaluated frequently –
perhaps weekly for the first month and monthly thereafter until the end of the introductory period for new
employees.

Performance appraisals can be done by anyone familiar with the performance of individual employees.
• Supervisors who rate their employees
• Employees who rate their supervisors
• Team members who rate each other
• Employees self-appraisal

WHAT SHOULD BE EVALUATED?

The criteria for assessing performance can be:

a. Quality & Quantity

b. Timeliness
c. Cost Effectiveness
d. Need for supervision
e. Interpersonal impact
f. Innovation & Creativity
g. Problem Analysis
h. Customer orientation
i. Market Orientation
j. Entrepreneurial Drive
This is not an exhaustive list, but several other parameters too can be added depending on job requirements and
organizational needs.
ELEMENTS OF AN EFFECTIVE APPRAISAL SYSTEM

• Use of an appraisal system that is job-related and understandable.

• Clear instructions and training for performance raters.
• Performance-rater familiarity with the nature and importance of job duties on which employee is being
rated.
• Clear identification of standards by which performance will be measured
• Scheduled, periodic reviews.
• Objective measurement (excellent/good/fair /unacceptable) if the employee is meeting performance
standards.
• Future action plan.
• Precautions against improper bias by raters.
 PERFORMANCE
APPRAISAL SYSTEM

IN

CORPORATES
 ➢ BHARTI AIRTEL (Primary data)
➢ KROLL INC (Primary data)
➢ CRIS (Secondary data)
BHARTI AIRTEL

Bharti Airtel is India's largest cellular service provider with more than 79 million subscribers as
of November 2008.It offers its TELECOM services under the Airtel brand and is headed by
Sunil Mittal. The company provides fixed line services, broadband services, telephone services
and Internet access. The company complements its mobile, broadband & telephone services with
national and international long distance services.

Timing of the Performance Appraisal System

As per the company policy, Appraisals are conducted on annual basis where either monetary
appraisal or position appraisal pr both is done. All the employees are informed through mails
and are asked to fill a KRA SHEET (Knowledge Resource Allocation)
If in case there are any unusual circumstances, appraisal can be done in once in 6 months also.

Appraisal Method- The method used is work standard approach. The steps involve-
1. Self Appraisal- first the employee given the form to fill and rate himself on the performance
and work objectives fulfilled.
2. Then the immediate appraisal is done by the Reporting manager. The manager conducts a
meeting with every employee, verifies the data filled by him and calculates the scores for the
performance.
 3. Regional HR- The form is submitted with regional HR head of the company who furthers add
information about the employee (no of leaves taken etc) and gives his remarks and
recommendations for the appraisal.
4. The final form is sent for appraisal to Corporate Office.

The copy of the original KRA SHEET of BHARTI AIRTEL is as follows:

Performance Management System Docket

Half year April
07 - Sep 07
Performance Planning / Review Form
Employee
Employee Code / Band
Name
Designation /
Business Unit / Circle
Department
Half Yearly Performance
Performance Planning
Review
Details of
Achievemen
ts /
%
Shortfalls / Scor
Key Measure(s achieveme
Learnings e
Objectiv )/ nt vs
(**) ( To be (To
es / Measure(s Weighta target (To
Target filled in by the be
Strategi ) of ge be filled
employee. fille
es / Completio by the
Please attach d by
Projects n (KPI) Reporting
relevant HR)
Manager)
documents
wherever
possible)
Fi Enabling CCR on
na growth backbone
99.7 10%
nc of LDS for the
ial business whole year
%age
overflow
< 6% 10
calls on
Backbone
Projection Projection 10
of E1's for made by
augmentin 1st week of
g on BB every
month and
ordered
placed for
atleast 60%
of
projected
wherever
 feasible

Providing
required
Vendor
information
escalation
within
for switch 5
24hrs for
related
80% of
problems
logged
cases
Verify the
Metasolv availablity
Order of free
Enabling
Manageme KLM's and
Custome 10
nt for send 99%
r Delight
Switch of orders
orders to TE with
in 24hrs
Verify the
resources,r
aise the
order and
implementa
tion with TX
Manageme assistance
nt of Link with in
Shifting & 48hrs for 10
Deactivati 60% of
Cu
on Orders cases.
st
Deactivatio
o
n orders
m
raised and
er
sent to
Prov with in
24hrs
Provide the
reports of
status of
Status
Internal
update of
orders to 5
Internal
all
Orders
concerned
on daily
basis.
Diversifica
tion of Implementa
E1's where tion of 70%
5
ever 50% cases with
of BB gets in 20days
affected
Pr Awarene Awareness Audit score 5
oc ss of of Quality of > 85%
es Company
 process
s and
policy
Pe Completion
Self
op of 2
developme
le modules 15
nt using E
& using E-
learning
Or learning
g
De
ve
Yellow
lo Completion
Belt 15
p of 2 YB
projects
m
en
t
%
Achievemen
t
Name,
Signature &
Date
Reporting
Employee Reporting Manager Employee
Manager

Source: RAMAKRISHNA KAKUMANI, Team Leader Technical, 20 Months experience

KROLL INC.
Kroll is a global risk consulting company headquartered in New York. Since its founding in
1972 by Jules B. Kroll, the company has expanded beyond private investigation and security
services into all areas of corporate risk mitigation including background screening, business
intelligence, market intelligence, forensic accounting, electronic discovery, and data recovery,
among others. It is a subsidiary of Marsh & McLennan Companies.

Timing of the Performance Appraisal System

Appraisals are conducted 4 times a year i.e. after every 3 months
The first 3 appraisals are more of a feedback and pay increase is done at the end of the year after
the 4th appraisal is done. At the end of the year bonus is given which is the cumulative result of
all appraisals done in the year.
If in case there is any

Who conducts the Appraisal?

The immediate appraisal is done by the floor manager. The manager is given the form to fill and
rate the employee.
This followed by the 360 degree approach wherein the colleagues, subordinates and superiors
are given the form to fill and rate a particular employee.
In the end an overall rating is taken and appraisal is done on the basis of that rating.

Methods Used
Kroll Inc. follows Category ratings method. The appraisal is done in the following two ways:
1. Graphic rating method: In this method the employees were rated on certain parameters
which marked an employee’s performance on a continuum.
This is basically done for performance appraisal.
PARAMETERS GRADES ALLOTED

TASK ACCOMPLISHMENT

PROBLEM SOLVING

DECISION MAKING

TEAM WORK

COORDINATION

The company uses 4 point rating scale: Below expectation/A; Met most of the expectation /AA;
Met all the expectation/AAA; Met &exceeded expectation /AAAA

OVERALL PERFORMANCE……………………………………..
This is: Poor, satisfactory, good and excellent.
RECOMMENDED FOR APPRAISAL…………………………….
Yes/No

Date……………
Signed…………
(RATER)

2. Checklist method: In this method employees are checked on the basis of their
characteristics, where each of them has a weightage based on which an overall score is
calculated. This is done basically as means of potential appraisal.

PARAMETERS RATING

POSITIVE ATTITUDE YES/NO

ADAPTABLE TO CHANGES YES/NO

EFFECTIVE TEAM MEMBER YES/NO

GOOD LISTENER YES/NO

HELPS PEERS YES/NO

CORDIAL RELATIONS WITH YES/NO

OTHER EMPLOYEES

OVERALL SCORE…………………………….

Date……………
Signed…………
(RATER)
SOURCE: PRATEEK CHOPRA, Background Screening Analyst, 6 months experience.

COCOA RESEARCH INSTITUTE OF SAVANA (CRIS)

The Cocoa Research Institute of Savana (CRIS) was originally called the Central Cocoa
Research Station of the Department of Agriculture, and was established in 1937. It is a
research institution, with a long tradition of thorough scientific study. It has well qualified
research staff and has most of the facilities and equipment required for effective work with the
soul focus on research and scientific activities related to cocoa.

TECHNICAL STAFF: Progression from Technical Assistant Grade III to Senior TA usually
takes a minimum of 15 years. Promotion to Senior Technical Officer is by screening and
selection. Thereafter, at each level, one has to spend a minimum of 5 years. Promotions to
higher levels are further constrained by availability of vacancies.

RESEARCH STAFF: Progression from Assistant Research Officer to Research Officer requires
a minimum of 3 years and gaining a second degree. Thereafter, it takes a minimum of 12 years
to move to the position of Chief Research Officer. All promotions are subject to availability of
vacant positions

EVALUATION REPORT -To be completed by Head of Division and signed both by Head and
staff member assessed.

1. Name (Full) Suzene Kopec Age: 39 years

2. Date of first appointment: 21.6.71

3. Date of present appointment: 1.10.81 Station: Tofa

4. Present salary: NSc 133 320.00 p.a. Tech. Asst. I

5. Was any warning or disciplinary action taken against the officer during the year? No.
6. Brief description of duties performed: Technical Assistant Grade I in charge of the Main
Nursery Activities.

PART I to be completed by the most senior office in immediate contact with the officer
concerned, being of a grade not below.

WORK ASSESSMENT- Graphical Rating Method

GRADES: O = outstanding; AA = above average; A = average; BA = below average; NO = not

observed.

Assessment period; grade; duties 1 2 3 4 5 6 7 8 9 10 11

1971/75; TA III; personal assistant, data A A AA A A AA A N.O. A A A

retrieval including some statistical
calculation and assisting in field

1975/76; TA III; labeling and field recording AA AA AA A A AA 0 BA A AA A

of vegetative measurements in progeny trials,
some time on numerical data in office

1976/77; TA 11; supervision of nursery A AA AA A A AA 0 BA A A A

preparations, field recording, data handling in
office

1977/80; TA II; nursery work in connection A AA AA A A A AA BA BA A A

with progeny trials

1980/81; TA II; field recording (growth and A A A A A A A A A A A

reproduction)

1981/82; TA I; same A BA BA A A BA A A A BA BA

1982/83; TA I; scoring of flowers A AA AA AA AA AA AA AA A AA A

1983/84; TA I; in charge of work in the A A A A A A A A A A A

greenhouse and nurseries

1984/85; TA I; in charge of the main nursery A A BA A A BA BA A A A A

1985/87; TA I; in charge of the nursery AA A A A A AA AA N.O. N.O. A A

CONDUCT ASSESMENT – Graphical Rating Method

A = Outstanding; B = Very good; C = Satisfactory; D = Below Average; E = Poor

WORK AND CONDUCT GRADE REMARKS

(a) Knowledge of work B

(b) Ability to work without supervision B

(c) Initiative C

(d) Sense of responsibility C

(e) Capacity for cooperation B

(f) Supervisory ability A

(g) Attendance B

(h) Punctuality C

(i) Health B

(j) Willingness to undertake extra duties C

Signed…………….
(Supervisor)

Date:

EMPLOYEE APPROVAL

I certify that the above is a fair/unfair assessment of my work and conduct. As I have reached
my maximum since three years now

(Signed)
Signature of officer assessed

Date:

PART II (CONFIDENTIAL): to be completed by Head of Division

Overall Grade (A - E): B

Give final remarks in the space below, indicating: ( Checklist method)

(a) Recommendation for increment YES/NO

(b) Recommendation for special commendation YES/NO

(c) Well qualified for promotion out of turn YES/NO

(d) Qualified for promotion in normal turn YES/NO

(e) Doing well, but requires more experience YES/NO

(f) (i) Not at present suitable for promotion for other YES/NO
reasons

(ii) Not at present eligible for promotion YES/NO

(g) Recommended for increment YES/NO

Signed..............

10 Additional remarks indicating views of staff assessed on Part I (if any)

SOURCE: http://www.fao.org/docrep/w7505e/w7505e07.htm

CONCLUSION

Performance appraisal is the process of reviewing employee performance vis-à-vis the set
expectations in a realistic manner, documenting the review, and delivering the review verbally in
a face-to-face meeting, to raise performance standards year over year through honest and
constructive feedback. In the process management expects to reinforce the employee’s strengths,
identify improvement areas so that one can work on them and also set stretched goals for the
coming year.
Effective performance management requires a good deal of face-to-face supervisor-employee
interaction. By knowing the subordinates, a supervisor can steer them onto a path of greater
productivity and optimized output. It is one of the most significant and indispensable tool for an
organization as it helps in getting to know the people who work for them. provides information,
which helps in taking important decisions for the development of an individual and the
organization.

REFRENCES

1. http://www.performance-appraisal.com/intro.htm

2. http://www.scribd.com/doc/2918255/PPTPerformance-Appraisal

3. http://www.fao.org/docrep/w7505e/w7505e07.htm
4. http://www.sideroad.com/Human_Resources/employee_performance_appraisal.html

5. http://www.wikipedia.com