“A STUDY ON THE CONCEPT OF “PERFORMANCE

APPRAISAL” AT AL SHIFA HOSPITAL”, MALAPPURAM

A PROJECT REPORT

Submitted by

BABU M

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

Of

MASTER OF BUSINESS ADMINISTRATION

IN

HUMAN RESOURCE

Under the guidance of

Mr. R.SANTHOSH KUMAR, MBA

DEPARTMENT OF MANAGEMENT STUDIES

ADHIYAMAAN COLLEGE OF ENGINEERING (Autonomous)

HOSUR-635 109

ANNA UNIVERSITY OF TECHNOLOGY – COIMBATORE

MAY- 2011

1
 BONAFIDE CERTIFICATE

This is to certify that the project report entitled “A STUDY ON THE CONCEPT OF
“PERFORMANCE APPRAISAL” AT AL SHIFA HOSPITAL” submitted by BABU-M
(AC09M) is a Bonafide record of the project done by him during the academic year 2009-2011,
under my guidance and supervision in partial fulfillment of DEGREE OF MASTER OF
BUSINESS ADMINISTRATION.

Date :

Place: HOSUR

Mr. SANTHOSH KUMAR Dr. R CHANDRASEKHAR

(Faculty Guide)) (Director)

Department of Management Studies

Adhiyamaan College of Engineering

(Autonomous)

Hosur – 635 109

Tamil Nadu

Viva voice examination held on: ___________________

Internal Examiner External Examiner

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 DECLARATION

I hereby declare that this project report entitled “A STUDY ON THE CONCEPT OF
“PERFORMANCE APPRAISAL” AT AL SHIFA HOSPITAL” submitted to Department of
Management studies, ADHIYAMAAN COLLEGE OF ENGINEERING, HOSUR in partial
fulfillment of the requirement for the award of the Degree of MASTER OF BUSINESS
ADMINISTRATION is a original work done by me during the period of my study at the college under
the supervision and guidance of Mr. R.SANTHOSH KUMAR, MBA, Department of Management
Studies, Adhiyamaan College of Engineering, Hosur.

PLACE: HOSUR BABU M

DATE:

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 ACKNOWLEDGEMENTS

“Behind every success lie invisible hands of so many able persons without whom this achievement would
have never come into existence”. I lay some words of gratitude to them.

First and foremost I humbly express my gratitude Mr. C.SATHEESH General Manager and Mr. SURESH
BABU Chief of HR Department for giving me the opportunity to undergo my project training in AL
SHIFA HOSPITAL.

I would like to thank and express my sincere gratitude to my guide Mr. SURESH BABU for his valuable
guidance, encouragement and suggestions throughout my project work.

I thank to whole staff of AL SHIFA HOSPITAL for their cooperation in the project work. Without their
contribution this study would not have been completed.

I proudly utilize this privilege to express my hearty thanks to our PRINCIPAL Dr.
G.RANGANATH, Adhiyamaan College of Engineering, Hosur, for giving me admission in this
prestigious institution. My special words of thanks to Dr. R.CHANDRASEKHAR,
DIRECTOR, Department of Management Studies. I would like to express my sincere gratitude to our
HEAD OF THE DEPARTMENT Dr. V. NAVANEETHA KUMAR for his guidance and
support and my faculty guide Mr. SANTHOSH, who helped me a lot in completing my mini project their
constant encouragement and suggestion.

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 CONTENTS

CHAPTER TITLE PAGE

NO. NO.
1 I.
EXECUTIVE SUMMARY

INTRODUCTION
II 2-5
1) MEANING AND DEFINITION OF THE STUDY
2) OBJECTIVES OF THE STUDY
3) SCOPE OF THE STUDY
4) LIMITATIONS OF THE STUDY

III RESEARCH METHODOLOGY 6

IV REVIEW OF LITERATURE 7-26

III ORGANIZATIOANL PROFILE 27-43

IV 44-57

DATA ANALYSIS AND INTERPRETATION

V CONCLUSIONS 58-64

1) FINDINGS
2) SUGGESTIONS
3) CONCLUSIONS
4) BIBLIOGRAPHY
5) ANNEXURE
EXECUTIVE SUMMARY

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This Project is on the topic A STUDY ON THE CONCEPT OF “PERFORMANCE
APPRAISAL” AT AL SHIFA HOSPITAL”. In this project I have explain the performance
appraisal, how the performance appraisal is done in an organization. I have asked several
question regarding performance appraisal to employees and questionnaire is been filled by the
AL SHIFA employees. To know the awareness level and success rate of performance appraisal
in AL SHIFA.

Performance appraisal is the process of obtaining, analyzing and recording information about the
relative worth of an employee. The focus of the performance appraisal is measuring and
improving the actual performance of the employee and also the future potential of the employee.
Its aim is to measure what an employee does.

Performance appraisal is a systematic way of reviewing and assessing the performance of an

employee during a given period of time and planning for his future.

Performance appraisal is necessary to measure the performance of the employees and the
organization to check the progress towards the desired goals and aims.

The objective of this project work was to provide a broader outlook on Performance Appraisal.
The other objective of the study is to know the purpose of performance appraisals.

INTRODUCTION

MEANING AND DEFINITION OF THE STUDY

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MEANING:

Performance appraisal is a method of evaluating the behavior of employees in the work spot,
normally including both the quantitative and qualitative aspects of job performance. Performance
here refers to the degree of accomplishment of the tasks that make up an individuals job. It
indicates how will an individuals is fulfilling the job demands. Often the term is confused with
effort, but performance is always measured in terms of results and efforts.

DEFINITIONS:

“Performance Appraisal is the process of determining from how well some one is performing in
his or her job it involves measuring performance and comparing it with an established standard”.

-JOHN PEARCE AND RICHARD ROBINSON

“Performance appraisal is a method of evaluating the behavior of the employees in the work
spot, normally including both the quantitative and qualitative aspects of the job performance”.

-V.S.P.RAO

“Performance appraisal is the system of evaluation of the individual with regard to his/her
performance on the job and his/her potential for development”.

--Dale S. Beach

“Performance Appraisal is a systematic, periodic and an impartial rating of employee’s

excellence in matter pertaining to his/her present job and his/her potential for a better job”.

--Edwin B. Flippo

OBJECTIVES OF THE STUDY

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The objective of the study is the survival of every organization in the market it is very essential
to enhance its production and productivity. To raise the production and productivity, human
resources are important factor.

The efficiency of the workmen raises the production and productivity Performance Appraisal
System can work as a good motivational factor to improve the efficiency of the workman.

 To study the Performance Appraisal System’s for executions in AL SHIFA HOSPITAL

PVT .LTD. PERINTALMANNA,

 To study the employees attitude towards Performance Appraisal System.

 To find out the possible errors and problems in the Performance Appraisal system.

 To evaluate the effectiveness of Performance Appraisal system.

 To suggest some suitable changes in the existing Performance Appraisal System’s

 To understand the system of H.R. its content tools of methodology

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SCOPE OF THE STUDY

The study was intended to obtain information about:

 The Performance standards of an employee

 The quality of work in the organization since the quality of work depends on the
performance of the employee.
 Perception among employees regarding Performance Appraisal.

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LIMITATIONS OF THE STUDY

 The major limitation of the study is the limited time period of 60-days.

 It was difficult to personally interview a large number of executives and to seek their
opinions on relevant issues.

 Sample size being small not every body’s view could be considered. Problem will be
increased with the confidential information.

 Errors are introduced in the appraisal because of a defect or bias in the person conducting
the appraisal.

 There is often a lack of communication whereby the employee does not know he is rated.

 Apart from lack of communication, sometimes communication of the rating to the

employee, if not done properly, would be taken as a criticism and may even result in his
performing more poorly.

 Often a supervisor is reluctant to give a low rating to an ineffective subordinate and gives
him an average rating.

RESEARCH METHODOLOGY:

Method of sampling:

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The basic idea of sampling is that by selecting some of the elements in a population we may
draw conclusion about the entire population. This has an important bearing on the collection of
the reliable data of the present study is to acquire an intensive opinion about the quality of work
life in AL SHIFA HOSPITAL PVT .LTD. PERINTALMANNA, MALAPPURAM, KERALA

For this purpose a descriptive research method was followed for the present study. The study in
this context has utilized available material about various aspects of

HRM, data collected through well designed questionnaire by giving to the employees of AL
SHIFA HOSPITAL PVT .LTD. PERINTALMANNA,

Sample size: In the present study of performance appraisal in AL SHIFA HOSPITAL PVT
.LTD, 30 employees were selected randomly for sampling

Construction of tools: The tool used for collecting the data for the study is questionnaire. A
questionnaire is simple, a formulized schedule to obtain and record specified and relevant
information with tolerably accuracy and completeness. Data was collected through a specially
designed questionnaire with 15 questions.

SOURCES OF DATA: Collection of data is form both the primary and secondary sources

Primary data: Data is collected through a well designed and approved questionnaire and also
interviews

Secondary data: It is collected from the records of the organization, and SOP from HRD Dept.

FRAMEWORK OF ANALYSIS:

For analysis and interpreting the collected data through primary data is part to statistical
techniques namely, percentage analysis and graphical analysis with bar charts. It is used arriving
at valid reliable conclusion.

REVIEW OF LITERATURE

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The history of Performance Appraisal is quite brief. It’s in the early 20 th century can be traced to
Taylor’s pioneering Time and Motion studies. As a distinct and formal management procedure
used in the evaluation of work performance, appraisal really dates from the time of Second
World War – not more than 60 years ago. Yet in a broader sense, the practice of appraisal is a
very ancient art.

There is, says DULEWICZ (1989), a basic human tendency to make judgments about those one
is working with, as well as about oneself.” Appraisal, it seems, is both inevitable and universal.
In the absence of a carefully structured system of appraisal, people will tend to judge the work
performance of others, including subordinates, naturally, informally and arbitrarily. The human
inclination to judge can create serious motivational, ethical and legal problems in the workplace.
Without a structured appraisal system, there is little chance of ensuring that the judgments made
will be lawful, fair, defensible and accurate.

Performance appraisal systems began as simple methods of income justification. That is,
appraisal was used to decide whether or not the salary or wage of an individual employee was
justified. The process was firmly linked to material outcomes. If an employee's performance was
found to be less than ideal, a cut in pay would follow. On the other hand, if their performance
was better than the supervisor expected, a pay rise was in order.

Sometimes this basic system succeeded in getting the results that were intended; but more often
than not, it failed. Pay rates were important, yes; but they were not the only element that had an
impact on employee performance. It was found that other issues, such as morale and self-esteem,
could also have a major influence. As a result, the traditional emphasis on reward outcomes was
progressively rejected.

In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and
development was gradually recognized. The general model of performance appraisal, as it is
known today, began from that time.

MODERN APPRAISAL:

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Performance appraisal may be defined as a structured formal interaction between a subordinate
and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in
which the work performance of the subordinate is examined and discussed, with a view to
identifying weaknesses and strengths as well as opportunities for improvement and skills
development.

In many organizations - but not all - appraisal results are used, either directly or indirectly, to
help determine reward outcomes. That is, the appraisal results are used to identify the better
performing employees who should get the majority of available merit pay increases, bonuses and
promotions.
By the same token, appraisal results are used to identify the poorer performers who may require
some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay.
(Organizations need to be aware of laws in their country that might restrict their capacity to
dismiss employees or decrease pay.)

Controversy:
Few issues in management stir up more controversy than performance appraisal. There are many
reputable sources - researchers, management commentators, and psychometricians - who have
expressed doubts about the validity and reliability of the performance appraisal process. Some
have even suggested that the process is so inherently flawed that it may be impossible to perfect
it. At the other extreme, there are many strong advocates of Performance Appraisal. Some view
it as potentially "... the most crucial aspect of organizational life"
- LAWRIE (1990)
Link to Rewards:
Research (BANNISTOR & BALKIN, 1990) has reported that appraises seem to have greater
acceptance of the appraisal process, and feel more satisfied with it, when the process is directly
linked to rewards. Such findings are a serious challenge to those who feel that appraisal results
and reward outcomes must be strictly isolated from each other.

INTRODUCTION OF PERFORMANCE APPRAISAL

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DEFINITIONS:

“Performance Appraisal is the process of determining from how well someone is performing in
his or her job it involves measuring performance and comparing it with an established standard”.

-JOHN PEARCE AND RICHARD ROBINSON

“Performance appraisal is a method of evaluating the behavior of the employees in the work
spot, normally including both the quantitative and qualitative aspects of the job performance”.

-V.S.P.RAO

A FORMAL DEFINITION OF PERFORMANCE APPRAISAL:

“The performance appraisal is the process of evaluating the performance and qualification of the
employees in terms of the requirements of the job for which he is employed, for the purpose of
administration including placement, selection for promotion, providing financial rewards and
other action which require differential treatment among the members of group as distinguished
from actions affecting all members equally”.

MEANING OF PERFORMANCE APPRAISAL:

Performance appraisal is a method of evaluating the behavior of employees in the work spot,
normally including both the quantitative and qualitative aspects of job performance. Performance
here refers to the degree of accomplishment of the tasks that make up an individual’s job. It
indicates how will an individual’s is fulfilling the job demands. Often the term is confused with
effort, but performance is always measured in terms of results and efforts.

PURPOSES OF PERFORMANCE APPRAISAL:

Performance appraisal aims at attaining the different purposes. They are:

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  To create and maintain a satisfactory level of performance.
 To contribute to the employee growth and development through training,
self and management development programs.
 To help the superiors to have a proper understanding about their
subordinates.
 To guide the job changes with the help to continuous ranking.
 To facilitate fair and equitable compensation based on performance.
 To provide information for making decisions regarding lay off,
retrenchment etc.

SCOPE OF PERFORMANCE APPRAISAL:

The world today is a world of revolutionary changes..In the next few years the world will be
witnessing a mega transformation of global economy. India has also been affected by this
change. New challenges in various fields are being accepted.

Innovation in the true sense is to be perceived and understood. In the 19 th century it was the
industrial revolution, which promised India a better future, but now it is the role of the
information technology, which decides the future.

The stride in industrialization in the 20 th century has been a remarkable future with various
changes in the working and managing styles of the industries. The advent of the information
technology along with the rapid industrialization in India demands a highly motivated, educated,
skilled and goal oriented work force. Performance has become the watchword in today’s
industrial scene.

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OBJECTIVES OF PERFORMANCE APPRAISAL:

The objective of performance appraisal scheme must relate directly to the business and growth
needs of units of organization as a whole.

The following are some impotent objectives of an appraisal scheme:

 Providing information for succession and resource planning.

 Providing a base for improved commutation between boss and subordinates.
 Identifying and recording performance weaknesses.
 Providing a basis for analysis of performance and identifying the required standards
and improvement.
 Identifying potential.
 Mutual feedback between boss and subordinate.

COMPONENTS OF APPRAISAL EVALUATION:

A performance appraisal evaluation may be conducted in an organization due to many reasons

such as

 Counseling
 Promotion
 Research
 Salary
 Administration
So it is very necessary to being by stating very clearly the objectives of the evaluation program.
Having done this, the personnel evaluation system should address the questions who, what,
where, how, of performance appraisal.

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“WHO OF THE APPRAISAL”?

The appraisal can be accomplished by one or more individuals involving a combination of

immediate supervisor, other managers acquainted with assesses work, a higher level manager, a
personnel manager, the assesses peers, the assesses himself and the assesses sub ordinates.

Sometimes self evaluation is also employed for evaluating performance. Self rating emphasizes
human relations, while superiors focus on technical knowledge and initiative. But this approach
had its disadvantages i.e., the individual may rate himself excessively high that it would be if I
his superior rated him. Because of this fairly consistent upward bias in self-appraisals, the best
thing would be to use these appraisals for counseling and developing sub ordinates. They are not
useful for making salary and promotion decisions.

Many companies use rating committees to evaluate employees. These committees consist of
supervisors, peers and subordinates. Everyone on the committee is a person who is able to
intelligently evaluate some aspect of the employee’s performance. Many discrepancies in the
ratings may occur when evaluations are by individuals.

“WHAT” OF THE APPRAISAL?

The “what” of the performance appraisal, consist in appraising non-supervisory employees for
their current performance and the managers of future potential and it also includes evaluation of
human traits.

“WHY OF THE APPRAISL”?

The “why” of an appraisal is concerned with?

 Creating and maintaining a satisfactory level of performance of employees in their

present job.
 Highlighting employee needs and opportunities for personal growth and development.
 Aiding in decision making for promotions, transfers, lay offs and discharges.
 Promoting understanding between the supervisor and the subordinates.

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  Providing useful criteria for determining the validity of selection and training methods
and techniques and forming, concrete measures for attracting individuals of higher caliber
to the enterprise.

“WHEN” OF THE APPRAISAL?

The “when” answer the query of appraisal? It has been suggested that formal counseling should
occur continuously. The manager should discuss and employees work as soon as possible after
he has judged it. He should use good work to provide positive reinforcement and use poor work
as a basis for training.

In most organization employees are formally evaluated once a year, in others twice a year. New
employees are rated more frequently than the older ones. The ideal thing is that each employees
should be rated three months there after being assigned to a job, after six months on the job and
every six months thereafter. The time of rating should not coincide with the time salary reviews,
for if the two occur together constructive evaluation and consideration of self-development will
probably take second place to the pressures of pay.

“WHERE” OF THE APPRAISAL?

The “where” indicates the location where an employee may be evaluated? It is usually done at
the place of work of office of the supervisor.

Informal appraisal may take place anywhere and everywhere, both on the job in work situations
and off the job.

“HOW” OF THE APPRAISAL

Under “how”, the company must decide what different methods are available and which of these
may use for performance appraisal. On the basis of the comparative advantages, and
disadvantages it is decided which method would suit purpose best.

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PROCESS OF PERFORMANCE APPRAISAL

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 METHODS OF PERFORMANCE APPRAISAL

TRADITIONAL METHODS
1. Graphic Rating Scale
2. Ranking Method
MODERN METHODS
3. Paired Comparison 1. Behaviorally Anchored
Method Rating Scales
4. Forced Distribution Method 2. Assessment Center
5. Check List Method 3. Human Resource Accounting
 Simple Checklist 4. Management by Objectives
 Weighted checklist 5. Psychological Appraisals
 Critical Incident Method 6.3600 APPRAISAL
 Forced choice method
6. Essay/ Free form Appraisal
7. Group Appraisal
8. Confidential Reports

TRADITIONAL METHODS

1) Graphical rating scale:

Graphic Rating Scales compare individual performances to an absolute standard. In this method,
judgments about performance are recorded on a scale. This is the oldest and widely used
technique. This method is also known as linear rating or simple rating scale. The appraisers are
supplied with printed forms, one for each employee. These forms contain a number of objectives,
behavior and trait based qualities and characters to be rated like quality and volume of work, job
knowledge, dependability, initiative, attitude, etc., In the case of workers and analytical ability,
creative ability, initiative, leadership qualities, emotional stability in the case of managerial
personnel.

These forms contain rating of scale. Rating scales are of two types, viz., continuous rating scale
and discontinuous rating scale. In continuous order like 0, 1, 2, 3, 4&5 and in discontinuous scale

20
the appraiser assigns the points to each degree. The points given by the rater know performances
regarding each character are added up to find out the overall performance. Employees are ranked
basis of total points assigned to each one of them.

One reason for the popularity of the rating scales is its simplicity, which permits many
employees to be quickly evaluated. Such scales have relatively low design cost and high incase
of administration. They can easily pin point significant dimensions of the job. The major
drawback to these scales is subjectivity and low reliability. Another limitation is that the
descriptive words often used in such scales may have different meanings to different raters.

2) Ranking Method:-

Under this method, the employees are ranked from best to worst on some characteristics. The
rater first finds the employees with the highest performance and the employees with the lowest
performance in that particular job category and rates the former as the best and latter as the
poorest. Then the rater selects the next highest and next lowest and so on until he rates all the
employees in that group.

Ranking can be relatively easy and inexpensive, but its relativity and validity may be open to doubt it
may be affected by rater bias or varying performance standards. Ranking also means that somebody
would also be in the back bench. It is possible that the low ranked individual in one group will turn out
to be superstar in another group.

One important limitation of the ranking method is that the size of the difference between
individuals is not well defined. For instance, there may be little difference in performance
between individual’s ranked second and third, but big difference between those ranked third and
fourth.

Column I (Best)

1) . . . . . . . . . . . . . . . .
2) . . . . . . . . . . . . . . . .
3) . . . . . . . . . . . . . . . .
4) . . . . . . . . . . . . . . . .
5) . . . . . . . . . . . . . . . .

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 Column II (Worst)

6) . . . . . . . . . . . . . . . .
7) . . . . . . . . . . . .
8) . . . . . . . . . . . . . .
9) . . . . . . . . . . . . . .
10) . . . . . . . . . . . . . .

3) Paired Comparison Method:-

This method is relatively simple. Under this method the appraiser ranks the employees by
comparing one employee with all other employees in the group, one at a time. This method
results in each employee being given a positive comparison total and a certain percentage of total
positive evaluation.

Paired comparison doesn’t force distribution of employees in each department. For instance, if a
department has two outstanding employees and six average employees and paired comparison is
correctly utilized, then those two employees will get a much higher percentage of positive
comparison than the other six. Paired comparison method could be employed fairly, easily when
the number of employees is less. The number of comparisons required equals N (N-1)/2.This
means that where the number is fairly large the technique may be time consuming. Another

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limitation of this technique is that employees are simply compared to each other on total
performance rather than specific job criteria.

A B C D E

A - A A A A

B - - C D E

C - - - C E

D - - - - E

E - - - - -

To compute employee’s positive evaluations:

Number of positive evaluations x 100 = employees % superior evaluation.

Total number of evaluations

Employee A Employee B Employee C Employee D Employee E

4/4 x100=100% 0/4x100=0% 2/4x100=50% 1/4x100=25% 3/4x100=75%

4) Forced Distribution method:-

The rater may rate his employees at the higher or at the lower end of the scale under the earlier
methods. Forced distribution method is developed to prevent the raters from rating too high or
too low. Under this method, the rater after assigning the points to the performance of each
employee has to distribute his ratings in a pattern to conform to normal frequency distribution.

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Thus, similar to the ranking technique, forced distribution requires the raters to spread their
employee evaluations in a prescribed distribution. This method eliminates central tendency and
leniency biases. However, in this method employees are placed in certain ranked categories but
not ranked within the categories. Quite often work groups do not reflect a normal distribution of
individual performance. This method is based on the rather questionable assumption that all
groups of employees will have the same distribution of excellent, average and poor performers.
If one department has all outstanding employees, the supervisor would find it extremely difficult
to decide who should be placed in the lower categories. Difficulties can also arise when the rater
must explain to the employee why he was placed in one grouping and others were placed in one
grouping and others were placed in higher groupings.

5) Checklist Methods:-

The checklist is a rating technique in which the supervisor is given a list of statements or words
asked to check statements representing the characteristics and performance of each employee.
There are three types of checklist methods, viz., simple checklist, weighted checklist and forced
choice method.

I) Simple Checklist Method:

The checklist consists of large number of statements concerning employee behavior. The rater
checks to indicate if the behavior of employees is positive or negative to each statement.
Employee performance is rated on the basis of number of positive checks. The negative checks
are not considered in this method. A difficulty often arises because the statements may appear to

24
be virtually identical in describing the employee. The words or statements may have different
meanings to different raters.

II) Weighted checklist method:

This method involves weighting different items in the checklist, having a series of statements
about an individual, to indicate that some or more important than others. The rater is expected to
look into the questions relating to the employees behavior, the attached rating scale and tick
those traits that closely describe the employee behavior. Often the weights are not given to the
supervisors who complete the appraisal process, but are computed and tabulated by someone else
such as a member of the personnel unit. In this method the performance ratings of the employee
are multiplied by the weights of the statements and the coefficients are added up. The cumulative
co-efficient is the weighted performance score of the employee. Weighted performance score is
compared with the overall assessment standards in order to find out the overall performance of
the employee. The weighted checklist, however, is expensive to design, since checklist for each
different job in the organization must be produced. This may prove time consuming also in the
end. Though the weighted checklist method is evaluative as well as developmental, it has the
basic problem of the evaluator not knowing the items which contribute mostly of successful
performance.

III) Forced Choice Method:-

This method was developed at the close of World War II. Under this method, a large number of
statements in groups are prepared. Each group consists of four descriptive statements concerning
employee behavior. Two statements are most descriptive and two are least descriptive of each
tetrad. Sometimes there may be five statements in each group out of which one would be neutral.
The actual weight ages of the statements are kept secret. The appraiser is asked to select one
statement that mostly describes employee’s behavior out of the two favorable statements and one
statement from the two unfavorable statements. The items are usually a mixture of positive and
negative statements. The intent is to eliminate or greatly reduce the rater’s personal bias,
specially the tendency to assign all high or low ratings. The items are designed to discriminate
effective from ineffective workers as well as reflect valuable personal qualities.

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IV) Critical Incident Method:-

Employees are rated discontinuously, i.e., once in a year or six months under the earlier methods.
The performance rated may not reflect real and overall performance as the rater would be serious
about appraisal just two or three weeks before the appraisal. Hence a continuous appraisal
method, i.e., critical incident method has been developed. Under this method, supervisor
continuously records the critical incidents of the employee performance or behavior relating to
all characteristics in a specially designed note book. The supervisor rates the performance of his
subordinates on the basis of notes taken by him.

Since the critical incident method does not necessarily have to be a separate rating system, it can
be fruitfully employed as documentation of the reasons why an employee was rated in a certain
way.

The critical incident method has the advantage of being objective because the rater considers the
records of performance rather than the subjective points of opinion, for example, mood,
emotional balance, relationship between superior and subordinate. This certainly helps in
reducing bias in the evaluation. However, the system is not without drawbacks. First, what
constitutes a critical incident is not defined in the same manner by all raters. Next, recording
events continually over a period of time may be resented by the raters.

6) Essay / Free Appraisal:-

This method requires the manager to write a short essay describing each employee’s
performance during the rating period. This format emphasizes evaluation of overall performance,
based on strengths/weaknesses of employee performance rather than specific job dimensions. By
asking supervisors to enumerate specific examples of employee behavior, the essay technique
minimizes supervisory bias and halo effect.

The time involved in writing separate essays about each employee can be formidable. Essays are
not amenable for evaluation and analysis; 50 essays describing different employee’s performance
cannot be tied to merit increases and promotion possibilities because there is no common
standard. Another inherent limitation of this method is that the evaluators may have unequal
skills in writing the essays. A skillful writer can present a more dramatic case about an employee

26
than an awkward writer or supervisor. Thus, the quality of the ratings depends, actually on
employee performance, but on the writing ability of the rater.

7) Group Appraisal:-

Under this method, an employee is appraised by group of appraisers. This group consists of the
immediate supervisor of the employee, to other supervisors who have close contact with the
employees work, manager or head of the department and consultants. The head of the department
or manager may be the chairman of the group and the immediate supervisor enlightens other
members about the job characters, demands, standards of performance etc. This method is widely
used for purposes of promotion, demotion and retrenchment appraisal.

8) Confidential Reports:-

Assessing the employee’s performance confidentially is a traditional method of performance

appraisal. Under this method, superior appraises the performance of his subordinates based on
his observations, judgment and intuitions. The superior keeps his judgment and report
confidentially. In other words the superior does not allow the employee to know the report and
his performance. Superior writes the report about his subordinates strength, weaknesses,
intelligence, attitude to work, sincerity, commitment, punctuality, attendance, conduct, character,
friendliness, etc.

Though confidential report is a traditional method, most of the public sector organizations still
follow this method in appraising the employees’ performance. This method suffers from a
number of limitations.

MODERN METHODS

1) Behaviorally Anchored Rating Scales (BARS):-

The behaviorally anchored rating method (BARS) method combines elements of the traditional
rating scales and critical incidents methods. Using BARS, job behaviors from critical incident-
effective and ineffective behaviors are described more objectively. The method employs

27
individuals who are familiar with a particular job to identify its major components. They then
rank and validate specific behaviors for each of the components.

How to construct BARS?

Developing a BARS follow a general format which combines techniques employed in the critical
incident method and weighted checklist ratings scales. Emphasis is pinpointed on pooling the
thinking of people who will use the scales as both evaluators and evaluees.

Step I: Collect Critical Incidents: People with knowledge of the job to be probed, such as job
holders and supervisors, describe specific examples of effective and ineffective behavior related
to job performance.

Step II: Identify Performance Dimensions: The people assigned the task of developing the
instrument cluster the incidents into a small set of key performance dimensions. Generally
between five and ten dimensions account for most of the performance. Examples of performance
dimensions include technical competence, relationships with customer handling or paperwork,
and meeting day to day deadlines. While developing varying levels of performance for each
dimension, specific examples of behavior should be used, this could later be scaled in terms of
good, average or below average performance.

Step III: Reclassification of Incidents: Another group of participation who are knowledgeable
about the job instructed to retranslate or reclassify the critical incidents generated previously.
They are given the definition of job dimension and told to assign each critical incident to the
dimension that it best describes.

Step IV: Assigning Scale Values To The Incidents: Each incident is then rated on a one to nine
scale with respect to have well it represents performance on appropriate dimension. A rating of
one represents ineffective performance; the top scale value indicates very effective performance.
The second group of participant’s usually assigns the scale values. Means and standards
deviations are then calculated for the scale values assigned to each incident. Typically incidents
that have standard deviations of 1.50 or less are retained.

Step V: Producing the Final Instruments: About six or seven incidents for each performance
dimension all having met both the retranslation and standard deviation criteria will be used as

28
behavioral anchors. The final BARS instrument consists of a series of vertical scales anchored by
the final incidents. Each incident is positioned on the scale according to it mean value.

Because the above process typically requires considerable employee participation, its acceptance
by both supervisors and their subordinate may be greater. Proponents of BARS also claim that
such a system differentiates among behavior, performance and results, and consequently is able
to provide a basis for setting developmental goals for the employee. Because it is job specific
and identifies observable and measurable behavior, it is more reliable and valid method for
performance appraisal.

Researchers, after surveying several studies on BARS, concluded that “despite the initiative
appeal of BARS, findings from research have not been encouraging”. It has not proved to be
superior to other methods in overcoming rater errors or in achieving psychometric soundness. A
specific deficiency is that the behaviors used are actively oriented rather than result oriented.
This creates a potential problem for supervisor doing the evaluation, who may be forced to deal
with the employees who are performing the activity but not accomplishing the desired goals.
Further, it is time consuming and extensive to create BARS.

2) Assessment Centre:-

This method of appraising was first applied in German Army in 1930. Later business and
industrial houses started using this method. This is not a technique of performance appraisal by
itself. In fact it is a system or organization, where assessment of several individuals is done by
various experts by using various techniques.

In this approach individuals from various departments are brought together to spend two or three
days working on individual or group assignment similar to the ones they would be handling
when promoted. Observers rank the performance of each and every participant in order of merit.
Since assessment centers are meant for evaluating the potential of candidates to be considered for
promotion, training or development, they offer an excellent means for conducting evaluation
process in an objective way. All assesses get an opportunity to show their talents and capabilities
and secure promotion based on merit. Since evaluators know the position requirements
intimately and are trained to perform the evaluation process in an objective manner, the
performance ratings may find favor with majority of the employees. A considerable amount of

29
research evidence is available to support the contention that people chosen by this method
through better than those chosen by other methods.

3) Human Resource Accounting:-

It deals with cost and contribution of human resources to organization. Cost of the employee
includes cost of man power planning, recruitment, selection, induction, placement, training,
development, etc. Employee contribution is the money value of the employee service which can
be measured by labour productivity or value added by human resources.

Cost of human resources can be taken as standard. Employee performance can be measured in
terms of employee contribution to the organization. Employee performance can be taken as
positive when contribution is more than the cost and performance can be viewed as negative if
cost is more than contribution. Positive performance can be measured in terms of percentage of
excess of employee contribution over the cost of employee. Similarly, negative performance can
be measured in terms of percentage of deficit in employee contribution over the cost of
employee. This % can be ranked to zero level.

This technique has not developed and still it is in transition stage.

4) Management by Objectives:-

This method is given by “Peter Ducker”, establishes results which workers or managers
expected, by mutual agreement with their supervisors, to achieve during a particular period of
time. Ideally, MBO takes into account the needs and goals of the organization, as well as those of
the individual.

Four steps depict the method:

1. Setting performance goals or targets. 3. Counseling on progress against goals

2. Recording performance against goals 4. Reviewing final results against goals.

30
5) Psychological appraisal:

Psychological appraisals are conducted to assess the employee potential. Psychological

appraisals consists of (a)in-depth interviews,(b)psychological tests (c)consultants and discussions
with the employee,(d)discussions with the superiors, sub-ordinates and peers, and (e)review of
other evaluations.

Evaluation is conducted in the areas of – (a)employees intellectual abilities, (b)emotional

stability, (c)motivational responses, (d)reasoning and analytical abilities, (e)interpretation and
judgment skills, (f)sociability, (g)employees ability to comprehend the events and ability to
foresee the future.

The psychological appraisals results are useful for decision-making about (1) employee
placement (2) career planning and development, and (3) training and development.

6) 360O FEEDBACK:

SUPERVISORS: Supervisors include superiors of the employee, other superiors having

knowledge about the work of the employee and department head or manager. General practice is
that immediate superiors appraise the performance which in turn is reviewed by the departmental
head / manager. This is 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.

PEERS: Peer appraisal may be responsible 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.

SUBORBINATES: The concept of having superiors rated by subordinates is being used in most
organizations today, especially in developed countries. Such a novel method can be useful in
other organizational settings too provided the relationships between and subordinates are cordial.
Subordinates’ ratings in such cases can be quite useful in identifying competent superiors.

31
 PROFILE OF AL SHIFA HOSPITAL

Al Shifa Hospital Pvt. Ltd., a Multi Super Specialty Tertiary Level Referral Hospital, established
in 1989 as a NRI venture having 450 beds, over 30 disciplines of various specialties and super
specialties with more than 60 consultants of National reputation. Al Shifa is a complete hospital
providing total health care at National/International standards in its true sense with its team of
highly skilled & experienced medical professionals with support work force of over 750
employees. Al Shifa provides treatment services to more than 200-300 patients of foreign
nationality every year.

We are an ISO 9001-2000 & ISO 14001-2004 certified hospital having one of the best
Orthopedic and trauma care centers in South India, also the first hospital in Kerala to perform
Computer Navigated Joint Replacement Surgeries. Al Shifa is also a centre for Cochlear
Implantation and Kidney Transplantation. On humanitarian grounds, the management has also
evolved a Charitable Trust with a great vision to help the poor, needy and people from the lower
level of society availing facilities like free/concessional Dialysis, Kidney Transplantation and
various other treatment expenses. Many well-wishers do also contribute for this magnanimous
charitable service. Al Shifa Hospital Pvt. Ltd. is also accredited by the National Board of
Examinations-Govt. of India, for P.G studies in various disciplines.

The Directors of the Hospital have also formed a Trust in the name of Shifa Medicare Trust
having Minority Status with main objective of the upliftment of professional education among
the Socially and Economically backward area of Malabar. The Trust has established a number of
Educational Institutions under Shifa Institute of Medical Sciences [SIMS] for various Courses
like; Post Graduate, Degree and Diploma studies where over 1000 of students are successfully
continuing their studies every year.Serve and care in the best way by providing the best quality
treatment at an affordable cost is our strategy. The world is our domain and ‘service to humanity’
is our slogan. Over the years Al Shifa Group, headed by Mr. P. Unneen, Chairman & Managing
Director, has carved for itself a name to reckon with creating an atmosphere conducive for a
healthy and better tomorrow.

We strongly believe that our success vest by the Grace of God Almighty. 

32
 BOARD OF DIRECTORS

Mr. P. UNNEEN –MANAGING DIRECTOR

Mr. K. T. ABDUL RASSAQUE – FINANCE DIRECTOR

Mr. P. HAMZA – OPERATION DIRECTOR

Mr. P. K. MOHAMMED HAJI – PUBLIC RELATION DIRECTOR

Dr. AHAMMED AMEEN – MEDICAL DIRECTOR

Dr. M. K. IBRAHIM – OVERSEAS DIRECTOR

33
MISSION

"Quality Treatment at an affordable cost"

VISION

Providing best Patient experience, safety and outcome providing seamless healthcare services.
Providing treatment faster, better at an affordable cost.

 CORE VALUES

Compassion:  We put you and your being at the center of all that we do. Treating with respect,
compassion and dignity.

Commitment:  We uphold your trust by maintaining highest professional integrity and
standards.

Excellence: We will continually seek advancement and innovation to achieve better health
care.

Team Based Care: We dedicate and combine our skills, Knowledge, expertise and experience
for your sole benefit.

Value: We seek always to create and deliver value for you.

34
QUALITY POLICY

"To our patients the best" Signifies our commitment   

We focus on: -        

  
• Providing best patient experience, safety and outcome.
• Providing seamless health care service.
• Providing treatment faster, better at affordable cost.

We pledge to enforce high standards and practices through continual improvement in the quality
management system to assure that the services meet and exceed the expectations of our patients,
client and the community.

ENVIRONMENTAL POLICY

AL SHIFA HOSPITAL PVT LTD is dedicated to provide better health, wellbeing and safety to
its patients, employees, customers, community and the environment.

This is achieved through-

    •  Protecting natural habitats through efficient use of natural resources

    •  Reducing pollution to air water and land
    •  Promoting minimization of waste
    •  Conservation of natural resources

Further the hospital is committed to bring continual improvement to prevent pollution and
compliance with all applicable legal and other requirements

35
MILESTONES
 
•  1989 : Inaugurated  75 bedded Al Shifa Hospital by Janab Syed Mohammed Ali Shihab
Thangal

•  1992 : Upgraded bed Strength to 150

•  1994 : Inaugurated Al Shifa School of Nursing

•  1994 : Certified “Baby Friendly Hospital”

•  1995 : Recognized training centre for Diploma in Pharmacy

•  1996 : Started Department of Urology

•  1997 : Inaugurated Al Shifa Scan Centre

•  1997 : Inaugurated 9 Storied Super Specialty Building and upgraded to 350 bedded

•  1998 : Commenced Department of Gastroenterology & Liver Diseases

•  2001 : Award winner of Kerala State Pollution  Control Board

• 2001 : Accredited by National Board of Examinations for conducting PG training (Dip

NB) in Orthopedics

•  2001 : Commenced Department of Nephrology & Dialysis unit

36
•  2002 : Established Al Shifa College of Nursing

•  2002 : Established Al Shifa College of  Pharmacy

•  Recipient of Gold Medal for the performances in Orthopedics

•  Rajeev Gandhi Award of Excellence to Department of Gynecology & Department of Oral

& Maxillofacial surgery

•  Regularly conducting CME’s, Seminars, & Medical Camps

•  Regular participant of Quality Assesment Scheme of CMC Vellore for Laboratory

medicine, also bagging the 18th rank

•  2003 : Inaugurated the Catheterisation Laboratory

•  2004 : Upgraded the hospital bed strength to 450

•  2004 : Signed MOU with the Ministry of Defiance ,New Delhi to provide  cashless
treatment to Ex Servicemen and their dependents enrolled in ECHS
 
•   An elaborate division for Health Care Management

•   2005 : Established Al Shifa College of Paramedical Sciences

•   2006 : Inaugurated the First Blood Bank & Component Separation Unit in the Private
Sector in South Malabar

•  2006 : Award from the State Pollution Control Board for the “Best Big Hospital” 

•   2007 : Inaugurated Computer Navigated Joint Replacement (CNJR) , Ortho Pilot III.

37
Second in India

•   2007 :  An approved centre for performing Kidney Transplantation 

•   2007 :  Inaugurated the first Cochlear implantation centre in South Malabar

•   2008 : Started M.Pharm course

•   Third Place Award from Kerala State Pollution Control Board

•   Introduced the First Whole Body 16 Slice MDCT in South Malabar

•  Regular participant of Quality Assessment Scheme of CMC Vellore for Laboratory

medicine, also bagging the 2nd rank among  the Elite group comprising of over 629
laboratories all the states of India and also Anadaman and Nepal.

•  Empanelled to Employee State Insurance Corporation (ESIC)

38
ORGANIZATION POLICIES

MANPOWER REQUIREMENT:

 To take specification for Job requirement in the prescribed format for all jobs opening in
the Organization.
 All the vacancies are displayed in the notice board for employees to apply. The same is to
facilitate equal opportunities for employees of Organization.
 All openings are intimated to employment exchange.
 All vacancies arise, either due to resignations or new openings, first option is given to
existing employees in the Organization and they will undergo for selection based on their
job opening.
 To competence requirement for all positions in the Organization the GM-HR should
consult with the HOD’S

SELECTION AND RECRUITMENT:

 The vacancies are identified in each Department and selection is made with the profile of
the person needed for filling the vacancy. The first option is given to the existing
employees.
 For all openings, the HR Department personnel conduct preliminary interview and the
ratings are given.
 Whenever fresher are recruited for job opening, selection process includes, written test,
wherein candidate is required to score 60% marks for further Interviews and Selections.
 Short listed persons are called for Interviews by the Hospital Administrator for suitable
place and date.

INDUCTION/ORIENTATION:

39
  Introduce the employee to the staff.
 Explain him the Organization History, Hierarchy, Grade structure
 Appraise him the rules and regulations of the organization
 Put him under training in Departments to understand the role of each Department
where he/she is going to work.
 Maintain induction training record.

PERFORMANCE APPRAISAL:

 The performance Appraisal is carried out once every year for all associates and after the
completion of one year for new recruits.
 Trainees will be assessed of their performance after completion of 3/6 months.
 After their potential appraisal they are recommended for promotion.

TRAINING:

 At least 20 managers undergo Management development training in a year.

 To maintain record related to competence, education, awareness, and training for all
associates.
 Induction, training is given for newly recruited personnel.
 On the job training is given to all staff depending upon recruitment.

FEED BACK:

After returning from the training the effectiveness of training is verified by the HOD and
forwarded to General Manager-HR for perusal of Manager.

40
 PERFORMANCE APPRAISAL SYSTEM IN AL SHIFA HOSPITALS

1. Purpose: To lay down policy guidelines for implementation of the Performance Management
System.

2. Scope: This policy will be applicable to all associates of Care except trainees, apprentices and
contract staff.

3. Responsibility: All HODs are responsible to ensure that the appraisals are completed on
time. HR Department will facilitate and monitor the process. The HR Department will also
acquaint the HODs/appraiser/ appraises about the Performance Management System.

4. Accountability: The Unit HR in charge under the overall supervision of the HA will be
accountable for the appropriate implementation of the Performance Management System in the
unit while the CHRD will responsible for its implementation at the Corporate and for associates
at the senior and middle levels of management. Queries on matter of policy will be referred to
Corporate HR for clarification.

5. Procedure:

5.1} Performance management is a method used to measure and improve effectiveness of

associates at the work place. It is a system composed of several activities including goal setting,
tracking changes, coaching, motivation and associate development.

5.2} The performance management cycle begins with goal setting. Performance is then tracked
against the associate’s goals and eventually appraised in a formal end of appraisal period
meeting. An informal mid appraisal period review will also be held. The results of the formal
appraisal will feed into the incentive/increment system.

5.3} It has been decided to adapt a Strategy Based Performance Management System. The
schematic representation of the system is at Annexure 1. The model will have the following four
phases : -

41
Performance Planning: At the beginning of the appraisal period the appraiser and appraisee
will get together for a performance planning meeting. In this session they discuss as to what the
associate will achieve during the appraisal period. The objectives, Key Performance Indicators,
the competency desired of the appraisee and the individual developmental plans are recorded on
the Performance Planning Form and kept with the personal file of the associate that is maintained
in the HR Department.

Performance Execution: Over the course of the appraisal period the associate works to
achieve the goals, objectives and key responsibilities. The appraiser coaches and provides
feedback as well as creates conditions that motivates and resolves performance problems that
arise. A semi-formal periodic review is held to review performance and set corrections in order
to enable the appraisee achieve the laid down objectives.

Performance Assessment: This is the appraisal system wherein the supervisor/appraiser has
to fill out an Assessment Form. The Appraisal Forms and a copy of the Performance Planning
Forms will be sent by the HR Department to the appraiser. . The completed appraisal form is
reviewed by the supervisor senior (boss) and submitted to the HR Dept who in turn will
scrutinize the same for its correctness.

The performance assessment of the appraiser will be shown to the appraisee and signed by both.
However the remarks/assessment of the Reviewing Officer will not be shown to the appraisee
and will be kept confidential. This is a measure to bring in objectivity, as also avoid a ‘ one man
report ‘ as well as even out the inflationary trend that is generally seen in appraisals that have to
be shown to the appraisee. Appraisal forms of HOD (Unit) will also be endorsed by the
Corporate Head in the staff / departmental channel of reporting.

Performance Review: The appraiser and the appraisee meet and discuss the assessment.
They will also set a date to hold performance planning discussion for the next appraisal period, at
which point performance appraisal starts anew.

42
6. Purpose of Performance Appraisal: A performance appraisal serves the following
purpose:-

6.1} Provides feed back to associates about their performance and encourages enhanced
performance

6.2} Determines who gets incentive and promotion

6.3} Counseling of poor performers

6.4} Determines training and development needs

6.5} Confirming that good hiring decisions are being made

6.6} Facilitates layoff and downsizing decisions.

7) Types of Appraisal Forms:

Depending upon the managerial level, separate types of Appraisal Forms will be formulated by
the Corporate HR Department and used for Senior Management, Mid Level Management and
Junior Managerial Cadre. At the Executive Level only an Appraisal Card will be used for the
assessment system.

8) Filing and Handling of Appraisal Forms:

The Appraisal Form is a privileged document. It should be treated with confidentiality. The
receipt/dispatch of the Forms should be done in a secure/confidential envelope. The Form
should finally get filed in the personal file of the individual.

9) Criteria for initiation of Appraisal Forms:

The following will be the norms for initiation of the Appraisals

9.1} The appraisee should have served for at least 90 days under the appraiser. In case he/she has
not served for 90 days then the previous supervisor will be eligible to initiate the appraisal. In

43
case he/she has served for less than 90 days in Care then he/ she will be eligible for an appraisal
in the succeeding appraisal period.

9.2} All appraisals will be reviewed and endorsed by the next senior in the line of reporting to
the appraiser.

9.3} Appraisals of all HODs (at unit) will also be endorsed by the staff functional head at
Corporate.

9.4} Associates below the grade of Manager (or equivalent designation) will not normally be
eligible to endorse the appraisal. In case the appraiser is at a designation lower than that of a
Manager then a special dispensation of the CHA/HA/Corporate Head should be taken to permit
initiation.

9.5} In case the appraiser and appraisee are of the same designation then the next senior in line
should initiate the appraisal.

9.6} Special endorsements can be made by the MD/ HA/COO/CEO/Chairman on any appraisal
form Queries on eligibility of initiation should be addressed to Unit/Corporate HR for
clarification.

10) Special Performance Reviews:

Special performance reviews can be initiated as necessitated by extraneous circumstances such

as special achievements or review of trainee cadre managerial staff seeking to come onto the
regular roles. In such cases approval of CHRD should be sought to initiate special appraisal
reports.

11) Appraisal Period:

The appraisal period and dates for initiation/completion of Appraisal Forms and payment of
increments will be as follows:-

44
 Grade Appraisal DATE

Period

Initiatio Completion of Payment of

n Appraisals Increment
Forms

Senior 01Apr-31Mar 01Apr 20Apr July

Management (next year)

(G10-G12)

Middle Level 01Apr-31Mar 01Apr 20Apr June

(next year)
Management

Junior Level 01Jan-31Dec 01Jan 31Jan May

Management

Executive 01Jan-31Dec 01Jan 15Feb April

Cadre

Nursing 01Oct-30Sep 01Oct 30Oct November

Cadre (next year)

12) Performance Rating:

45
Associates will be assessed by the appraiser on various individual qualities as well as their
overall performance on ratings as under:-

12.1. Performance rating ‘A’- Performance exceptional and consistently high level

12.2. Performance rating ‘B’- Performance superior and consistently exceeds overall
performance requirements

12.3. Performance rating ‘C’- Performance satisfactory meets most parameters of performance
requirements. Weaknesses offset by strong points.

12.4. Performance rating ‘D’- Below satisfactory performance. However displays progress
towards an enhanced performance

12.3. Performance rating ‘E’- Poor performance due to being relatively new to assignment or
definite weakness.

13) Performance Incentive:

Incentives will be paid once a year along with the annual increment. All incentives will be based
on a pay-for-performance scheme. The performance incentive will be paid as merit pay and
added to the base salary. As per overall rating of the Reviewing Officer, the appraiser will be
authorized the following percentages of incentive:-

13.1 Performance Rating ‘A ‘- 15%

13.2 Performance Rating ‘B ‘- 12 %

13.3 Performance Rating ‘C ‘- 10 %

13.4 Performance Rating ‘D ‘- 08%

13.5 Performance Rating ‘E ‘- 00%

14) Variable/ Fixed Component of Incentive:

46
The amount set aside for annual increment and performance incentive will depend on budgetary
allocation. However the maximum amount that an associate can receive as incentive or
increment will be 20 % of gross salary. The amount of increment/incentive that an associate can
be paid will be as fixed ( i.e. assured ) component and variable ( ie as pay-for- performance )
component will depend on the managerial cadre and allocated as below:-

Grades Fixed Component Variable Component

Executive Level 75% 25%

Junior Management 60% 40%

Middle Management 40% 60%

Senior Management 25% 75%

15) Other Merit Incentive Options:

The company may decide to give other forms of merit incentives. They can be as follows:-

15.1 Annual Bonus

15.2 Team Incentives

15.3 Departmental Incentives

15.4 Ex gration payments

15.5 Associate Stock Ownership plan

16) Debarment from initiation of Appraisals:

Any associate who is under disciplinary proceedings will be debarred from initiation of
appraisals. In such cases the next supervisor in the line of reporting will initiate.

17) Scrutiny of Appraisal Forms:

47
All initiated Appraisals will be subject to scrutiny by the HR Department. The HR Department
will check the channels of reporting for its correctness, completion of forms in all respects and
objectivity in reporting. In case of anomalies the HR.

Department will get the same rectified and then appropriately filed in the personal file of the
associate. The performance ratings will be separately recorded on a nominal roll and forwarded
to Corporate HR duly authenticated by the Unit HR Head so as to impact the same in the salary
of associates.

18) Representations against Appraisals:

Associates can represent against the rating or any other aspect of the Appraisal. All
representations will be made on an application. Comments of the appraiser, Reviewing Officer
and HR Department will be obtained on the same and sent to CHRD for decision.

48
19) Performance/participation in Training Programmes:

Participation in training programmes by associates is mandatory. The participation/performance

in training programmes will be evaluated and a record of the same maintained by the HR
Department. The same will be endorsed in the Appraisal Forms. The performance in the training
programmes will be considered while deciding whether the associate is capable of being
promoted and assuming higher responsibilities.

DATA ANALYSIS

1) Do you understand the term Performance Appraisal?

a) Yes b) No

Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

Yes 26 86.7%

No 04 13.3%

Graphical Representation of collected data:

49
 100
80
60
YES
40
NO
20
0
No. of percentage
Employees

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 86.7% of the employees say that they understand the
term of performance appraisals, 13.3% of the employees say that they do not understand the term
of Performance appraisals.

Interpretation: Most of the employees say that they understand the term performance
appraisals.

2) Is AL SHIFA Hospitals implementing Performance Appraisals?

a) Yes b) No

Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

Yes 28 93.3%

No 2 6.7%

Graphical Representation of collected data:

50
 100
80
60
YES
40
NO
20
0
No. of percentage
Employees

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 93.3% of the employees say that they agree that AL
SHIFA HOSPITAL implementing the performance appraisals, 6.7% of the employees say that
not implementing the performance appraisals.

Interpretation: Most of the employees say that AL SHIFA HOSPITAL implementing the
performance appraisals.

3) Are you aware with the procedure of Performance Appraisal?

a) Yes b) No

Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

Yes 27 90%

No 03 10%

Graphical Representation of collected data:

51
 100
80
60
YES
40
[ NO
20
0
No. of percentage
Employees

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 90% of the employees say that they aware the procedure
of performance appraisal and remaining 10% of employees says that they are not aware the
procedure of performance appraisals.

Interpretation: Most of the employees say that they know the procedure of performance
appraisals.

4) Are you satisfied with present Appraisal systems being followed in AL

SHIFA Hospitals?

a)Highly satisfied b)Average

c)Satisfied d)Neutral

Tabular representation of collected data

SOURCE NO OF EMPLOYEES PERCENTAGE

Highly satisfied 3 10%
Average 9 30%
Satisfied 11 36.7%
Neutral 7 23.3%

Graphical Representation of collected data:

52
 40

30
Highly satisfied
20 Average
10 Satisfied

0 Neutral
NO OF
EMPLOYEES

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 10% of the employees say that they are highly satisfy
with the present procedure of Appraisal system,36.7% of employees are satisfied ,30% of
employees are average satisfy, 23.3% of employees are in neutral position.

Interpretation: Most of the employees saying that they are satisfy with the present Appraisal
system followed by the Organization.

5) At what frequency Performance Appraisal system is evaluated?

a) Promotion b) After Probation

c) Annually d) All the above

Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

Promotion 2 6.7%
After Probation 2 6.7%
Annually 25 83.3%
All the above 1 3.3%

Graphical representation of collected data:

53
 90
80
70
60
50 Promotion
40
30
After Probation
20 Annually
10 All the above
0
No. of percentage
Employees

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 83.3% of the employees say that AL SHIFA HOSPITAL
performance appraisal system will evaluated at annually and 3.3% of employees are say that All
the above,6.7% of employees are say that Promotion and after probation.

Interpretation: Most of the employees agree that the performance appraisal system will be
evaluated once in yearly.

6) Which you feel is more comfortable and advisable?

a) Self appraisal system b) Confidential report system

Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

Self appraisal system 16 53.3%

Confidential report system 14 46.7%

Graphical representation of collected data:

54
 60
50
40
30 self appraisal
20 confidential
10
0
No. of percentage
Employees

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 53.3% of the employees say that they feel that self
appraisal system will be more comfortable and advisable, 46.7% of employees says that
confidential report system will be more comfortable and advisable.

Interpretation: Most of the employees agree that Self appraisal system will be more
comfortable and advisable.

7) Do you receive your Performance Appraisal report after it is evaluated?

a) Yes b) No

Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

Yes 12 40%

No 18 60%

Graphical representation of collected data:

55
 20

15
Yes
10
No
5

0
No. of Employees percentage

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 40% of the employees say that they receive the appraisal
report after it is evaluated, 60% of employees says that they don’t receive their appraisal report
after evaluation yet to be done till now.

Interpretation: Most of the employees saying that they don’t receive their appraisal report
after it is evaluated.

8) Who appraises your performance?

a) HOD b) HR

Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

HOD 28 93%

HR 2 7%

Graphical representation of collected data:

56
 20

15

10 HOD
5 HR

0
No. of percentage
Employees

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 28% of the employees say that they appraised by HOD
& HR 2% of employees say that they appraised by HR.

Interpretation: Most of the employees saying that they are appraised by their Head of the
department and Hospital Administration.

9) Do you think present Performance Appraisal system need a Change?

a) Yes b) No

Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

Yes 06 20%

No 24 80%

Graphical representation of collected data:

57
 25

20

15
Yes
10 No

0
No. of Employees percentage

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that20% of the employees say that they think that present
appraisal system need a change, 80% of employees say that no need of change yet to be done till
now.

Interpretation: Most of the employees thinking that present appraisal system not to be change.

10) Performance Appraisal is used for?

a) Identity training needs b) promotions/demotions

c) Recognize employee efforts d) All the above

Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

Identity training needs 2 6.7%
Promotions / Demotions 2 6.7%
Recognize employee effort 12 40%

All the above 14 46.6%

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Graphical representation of collected data:

14
12 Identity training
10 needs
8 Promotions /
6 Demotions
4 Recognize
2 employee efforts
0 All the above
NO OF
EMPLOYEES

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 02% of the employees say that performance appraisal
used for giving the promotions/demotions and identity training needs, 12% of employees saying
that appraisal is used for the recognize employee efforts and remaining 14% of employees are
saying that it is used for all the above.

Interpretation: Most of the employees are saying that performance appraisal is used for
identity training needs, promotions/demotions, recognize employees efforts.

11) Is there is a need of interactive sessions during Performance Appraisal between HOD and
employees?

a) Yes b) No

Tabular representation of collected data

SOURCE NO OF EMPLOYEES PERCENTAGE

Yes 28 93.3%

No 02 0.7%

Graphical representation of collected data:

59
 30
25
20
Yes
15
No
10
5
0
No. of Employees percentage

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 93.3% of the employees are agree that their is a need of
interactive session during performance appraisal between the HOD and employee, 0.7% of
employees are saying that there is no need of interactive.

Interpretation: Most of the employees are saying that it is compulsory need the interactive
session during performance appraisal between the HOD and employees.

12) Are you sure that you get some sort of benefits by offering Appraisals?

a) Yes b) No

Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

Yes 26 86.7%

No 04 13.3%

Graphical representation of collected data:

60
 30
25
20
Yes
15
No
10
5
0
No. of Employees percentage

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 86.7% of the employees are saying that they get some
benefits after appraisal, 13.3% of employees are saying that they don’t get benefits after
appraisals.

Interpretation: Most of the employees are agree that they are getting some sort of benefits
after appraised.

13) What methods are taken to improve the employee’s performance?

a) Training b) Counseling

c) Motivation d) All the above

Tabular representation of collected data

SOURCE NO OF EMPLOYEES PERCENTAGE

Training 03 10%
Counseling 04 13.3%
Motivation 06 20%
All the above 17 56.7%

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Graphical representation of collected data:

20

15
Training
10 Counseling
5 Motivation
All the above
0
No. of percentage
Employees

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 10% of the employees are saying that training is
improves the employee performance, 13.3% of employees are saying that counseling is used for
improves the employees performance, 20% of employees are saying that motivation is used for
the improves employees performance and remaining 56.7% of employees are saying that all the
above methods are used for the improves the performance of the employees.

Interpretation: Most of the employees are agree that for improving the performance of the
employees all the methods should be used i.e., training, counseling and motivation.

14) How do you feel overall performance appraisal system followed by your Organization?

a) Excellent b) very good

c) Good d) Average

Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

Excellent 03 10%

Very good 04 13.3%

Good 16 53.3%

Average 07 23.3%

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Graphical representation of collected data:

20

15
Excellent
10
Very good
5 Good
Average
0
No. of percentage
Employees

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 10% of the employees says that over all appraisal system
is excellent, 13.3% of employees saying that it is very good, 53.3% of employees feel that it is
good, 23.3% of employees feel that is was average.1

Interpretation: Most of the employees are feel that over all performance appraisal system is
good.

FINDINGS

 Most of the employees know about performance appraisal and few of them not aware of
the performance appraisal.
 All the employees agree that AL SHIFA HOSPITALS implementing the performance
appraisals.
 Most of the employees say that they know the procedure of performance appraisals and
few of them don’t know.
 In the AL SHIFA HOSPITALS implementing the Modern method.
 Most of the employees satisfied with the present appraisal system followed by the AL
SHIFA HOSPITALS and few of them not satisfied.
 In this Organization performance appraisal evaluated once in yearly.
 Most of the employees agree that Self appraisal system will be more comfortable and
advisable.

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 Performance feedback is not being implemented in the organization, presently only few
employees are receiving performance feedback.
 The head of the department will appraise the performance of the employees.
 Most of the employees thinking that present appraisal system need to be change.
 Most of the employees thinking that Self Appraisal system is required.
 Most of the employees are saying that performance appraisal is used for identity training
needs, promotions/demotions, recognize employee efforts.
 Most of the employees are feel that 360 degrees appraisal system would be more
effective than the present system.
 Most of the employees are agree that they are getting some sort of benefits after
appraised.
 Most of the employees are saying that there is a need of an expert person in the H.R.
department.
 Most of the employees are feel that overall performance appraisal system is good.
 Performance appraisal not been done for some categories of employees of the
organization.

SUGGESTIONS

 The awareness can be created among all the employees by conducting classes and
interactive sessions about the Performance Appraisal.
 The organization should cover all categories of employees for appraisal system.
 Hence different forms should be designed for different categories of employees of the
Organization.
 By this the employees will know about their lacking and try to improve and their superior
should counsel the employee about the Performance.
 Organization should give feedback to all levels of employees.
 Organization should focus on performance feedback and it should be communicated for
all the employees of AL SHIFA Hospitals.
 Organization should give scope for interaction between superior and subordinate.

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 Organization should appoint an expert in appraisal to make appraisal authentic and fool
proof.
 Performance appraisal should be done for the lower level employees also, so that they
can work sincerely.
 Periodical appraisal helps the company to compare employee’s performance and to take
apt decisions for further improvement.
 Annual performance appraisals evaluate the role of the employee in the organizational
development and also monitoring the standard, expectations, objectives, efficiency in
handling task and responsibilities in a period of time.
 Each employee should evaluate by his supervisor and to discuss each other to set
objectives for upcoming evaluation.
 This discussion should cover the review of overall progress, problems encountered,
performance improvement possibilities, long term career goals, specific action plan about
job description and responsibilities, employee development interest and needs, to
concentrate specific areas of development, to review performance objectives and
performance standard, ongoing feedback and periodic discussions.

CONCLUSION

 Performance appraisal refers to the assessment of an employee’s actual performance,

behavior on their jobs, and his or her potential for future performance.

 Appraisals has several objectives but the main purposes are training needs, to assess
training needs, to effect promotions, and to give pay increases.

 Employees have to understand about his or her roles and become clear about his
functions, he or she understands his or her own strengths and weaknesses.

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 Performance appraisal should cover at all levels of the employee’s but it covers only few
levels. Not only few employees are aware of performance appraisal all the employees
should be aware. Appraisal needs support of all levels of employees.

 The management has to make performance appraisal understand and clear about
questionnaire to every employee.

 Organization has to maintain proper communication between superior and subordinate.

Which leads to organizational effectiveness and employee well being. Organizational
relations also been maintained.

 The quality of work in the organization since the quality of work depends on the
performance of the employee.

 The term “Performance Appraisal” is concerned with the process of valuing a person’s
worth to an organization with a view to increasing it.

BIBILIOGRAPHY

“HUMAN RESOURCE MANAGEMENT”

ASWATHAPPA.K

“HUMAN RESOURCE MANAGEMENT AND INDUSTRIAL RELATIONS”

SUBBA RAO.P

“APPRAISING AND DEVELOPING MANAGERIAL PERFORMANCE”

“RAO, T.V”

66
 “PERFORMANCE MANAGEMENT”

“PREM CHADHA”

Websites:

www.alshifahospital.com

www.google.com

{www.changingminds.org

www.performance-appraisal.com}

ANNEXURE
Questionnaire
Dear Sir/ Madam,
I am MBA student of Adhiyamaan college of engineering, Hosur And presently doing a Major
project in “A STUDY ON THE CONCEPT OF “PERFORMANCE APPRAISAL” AT AL
SHIFA HOSPITAL”. I request you to kindly fill the questionnaire below and I assure you that
the data generated shall be kept confidential.

1) Do you understand the term Performance Appraisal?

a) Yes b) No

2) Is AL SHIFA Hospital implementing Performance Appraisal’s?

67
 a) Yes b) No

3) Are you aware with the procedure of Performance Appraisal?

a) Yes b) No

4) Are you satisfied with present Appraisal system being followed in AL SHIFA Hospital?

a) Highly satisfied b) Satisfied

c) Average satisfy d) Neutral

5) At what frequency Performance Appraisal system is evaluated?

a) Promotion b) After Probation

c) Annually d) All the above

6) Which you feel is more comfortable and advisable?

a) Self appraisal system b) Confidential report system

7) Do you receive your Performance Appraisal report after it is evaluated?

a) Yes b) No

8) Who appraises your performance?

a) HOD b) HR

9) Do you think present Performance Appraisal system need a Change?

a) Yes b) No

10) Performance Appraisal is used for

a) Identity training needs b) promotions/demotions

c) Recognize employee efforts d) All the above

11) Is there is a need of interactive sessions during Performance Appraisal between

68
 HOD’s and employees?

a) Yes b) No

12) Are you sure that you get some sort of benefits by offering Appraisals?

a) Yes b) No

13) What methods are taken to improve the employee’s Performance?

a) Training b) Counseling

c) Motivation d) All the above

14) How do you feel overall Performance Appraisal system followed by your organization?

a) Excellent b) very good

c) Good d) average

15) Give me any suggestions on Performance Appraisal System in AL SHIFA.

69