Analysis of Employees Attitude Towards Potential & Performance Appraisal | Performance Appraisal | Employment

Summer Training Report On

(a case study in NM Infotech)
in the partial fulfillment of the award of degree of Master of Business Administration (Session: 2010-2011)



RIMT Institute Of Management and Technology Mandi Gobindgarh

Research is an endless ocean and one requires guidance and support by several individuals in order to derive out a hand full of pearls from its depth. It is difficult to acknowledge so precious a debt as that of learning, as it is the only debt that is difficult to repay except through gratitude. I take the privilege to pay my deepest appreciation and heartiest thanks to all my teachers of SSIT, whose constant guidance is unbounded source of inspiration for us. I would like to express my sincere thanks to my Project guide Mr. Manvinder Tandon who provided me valuable insights on my topic and helped me to clearly chalk out my area of study. Last but not the least; I would take the opportunity to thank my parents, friends and all those visible and invisible hands that contributed to make this project a success.


The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World War - not more than 60 years ago. In many organizations - but not all - appraisal results are used, either directly or directly, 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.) The purpose of this study has been to determine whether the performance appraisal was used for employee development and whether the appraisal was emphasized as an important part of the performance appraisal process. Also whether the performance appraisal helps in increasing company’s profitability. Our study suggested that the performance appraisal has helped in increasing the profitability of SAIL which was clearly shown by their performance on BSE Sensex. Certain loop holes has been determined and suggestions were made.



Professionals in DOT NET. with quality faculty and great atmosphere for learning. NM Infotech is an organisation of Designers. Student are trained in live projects. the growing identity in Software Technology and Training. It deals in Software Product Development and provides services for all web application. the company is a dream of dedicated team of professionals who themselves have grown up with the I. Vision of NM Infotech: To create total harmony with our associates through trust and total understanding. PHP . 6 Months industrial training provide in Chandigarh. ERP. NM has established itself as . revolution. established in 2002. To progress and strive for excellence through optimum opportunities to personnel and seek avenues to benefit the community at large. java. NM is working from last few years as a Information Technology Company with annual turnover exceeding INR 14 million. It offers differentiated technology and dedicated service support infrastructure as per the needs and requirements of customers. NM is a leading ERP solutions and Software Development organization in India. NM Infotech. Training for the best JAVA Courses. T. NM key to the success has been providing solutions blending with the right technology and ensuring value for the money. We deliver products and services of the highest quality adding more value to our customers enabling them to achieve their business objectives.NM Infotech is one of the pioneers in the Indian Global market. your all web problems are sorted in NM Infotech. Devlopers and Analyst. Mission of NM Infotech: "To become the leading organization for ERP solutions and service providers in the world". NM Infotech a Growing software company in Mohali.

the management group and the dedicated members who have collectively worked for its present image and striving to further improvise its services and education related of the leading companies in India and has had a growth rate of over 70% in the last two years. This is a result of consistent contribution of its core team of developers and trainers. Company services: • Software Solutions • Security Solutions • Corporate Training • Industrial Training • Campus Training Projects handled: • Guest house management system • ERP solutions • Online grocery • Cyber access control PUNCH LINE “Quality Speaks Itself” .


care should be taken in the effort of quantitative measurement.EMPLOYEES ATTITUDE "An employee’s attitude toward the job's importance and the company had the greatest impact on loyalty and customer service then all other employee factors combined. . although a large quantity of research in this area has recently been developed. measuring employees attitude provides an indication of how successful the organization is in fostering a conducive environment which nurtures great attitude among employee’s towards their Job and company . MEASURING EMPLOYEE ATTITUDE Organizations are increasingly interested in retaining right talents while targeting for new talents. The employee is asked to evaluate each statement in term of their perception on the performance of the organization being measured. Because attitude is basically a psychological state.e. how employees perceive these appraisals in the organization and the effect of these appraisals on the productivity of employees in the organization. The surveys of this type provides an understanding how the employee perceives the organization. The usual measures of employee attitude involve an employee attitude survey with a set of statements using a Likert Technique or scale. This project has been undertaken to analyze the employees attitude towards performance and potential appraisal i.

Once the employee has been selected. Performance appraisal is the process of obtaining. By focusing the attention on performance. and organization is a common practice of all the societies while in some instances. . It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. in other instances. If any problems are identified. According to Flippo. the appraisal process is structured and formally sectioned. steps are taken to communicate with the employees and to remedy them. 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. groups. periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job. analyzing and recording information about the relative worth of an employee. “performance appraisal is the systematic. performance appraisal goes to the heart of personnel management and reflects the management’s interest in the progress of the employees. refine and reward the performance of the employee.PERFORMANCE APPRAISAL Appraising the performance of individuals. he is then appraised for his performance. the process is informal and integral part of daily activities. It is a powerful tool to calibrate. trained and motivated. Performance appraisal is the step where the management finds out how effective it has been at hiring and placing the employees. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee.

• • • To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior – subordinates and management – employees.OBJECTIVES OF PERFFORMANCE APPRAISAL: To review the performance of the employees over a given period of time. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future • .

Various methods of appraisal include:1) Traditional methods 2) Modern methods. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. 2. STRAIGHT RANKING METHOD . TRADITIONAL METHODS 1. also known as “Free Form method” involves a description of the performance of an employee by his superior. • • • • • PERSONNEL APPRAISAL EMPLOYEE ASSESSMENT PERFORMANCE RATING EMPLOYEE EVALUATION & MERIT RATING EMPLOYEE PERFORMANCE REVIEW Performance appraisal means evaluating an employee’s current or past Performance relative to the person’s performance standards. Managers usually conduct the appraisal using a predetermined and formal method.OTHER TERMS WHICH ARE USED FOR PERFORMANCE APPRAISAL. Appraisal involves: (I) Setting work standards (ii) Assessing the employee’s actual performance relative to these standards (iii) Providing feedback to the employees with the aim of motivating that person to eliminate deficiencies or to continue to perform above par. ESSAY APPRAISAL METHOD This traditional form of appraisal. A major drawback of the method is the inseparability of the bias of the evaluator.

The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees. CHECKLIST METHOD The rater is given a checklist of the descriptions of the behaviour of the employees on job. 6. After all the comparisons on the basis of the overall comparisons. this method compares each employee with all others in the group. In this method. 3. CRITICAL INCIDENTS METHODS In this method of Performance appraisal. a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. It is quite useful for a comparative evaluation. one at a time. It includes both negative and positive points. 7. the employees are given the final rankings. PAIRED COMPARISON A better technique of comparison than the straight ranking method. But this method helps to reduce the superiors’ personal bias. A major drawback of this method is that it is a very time consuming method. 5.This is one of the oldest and simplest techniques of performance appraisal. GRAPHIC RATING SCALE . 4. the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. FIELD REVIEW In this method. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behaviour as and when they occur.

an employee’s actual job behaviour is judged against the desired behaviour by recording and comparing the behaviour with BARS. In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees. an employee’s quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. Human resource accounting method tries to find the relative worth of these assets in the terms of money. the contribution of the employees should be greater than the cost incurred on them. The rater chooses the appropriate fit for the categories on his own discretion. above average. FORCED DISTRIBUTION To eliminate the element of bias from the rater’s ratings. outstanding or unsatisfactory. recruitment and selection costs. Developing and practicing BARS requires expert knowledge. For example a trait like Job Knowledge may be judged on the range of average. HUMAN RESOURCE ACCOUNTING METHOD Human resources are valuable assets for every organization.In this method. 8. the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The cost of employees include all the expenses incurred on them like their compensation. Modern methods In this method. The factors taken into consideration include both the personal characteristics and characteristics related to the on-the-job performance of the employees. The difference between the cost and the contribution will be the performance of the employees. induction and training costs etc whereas their contribution includes the total value added (in monetary terms). 360 DEGREE FEEDBACK . Ideally.

Self appraisal 2. superior). co-operation and sensitivity towards others. 360 degree appraisal has four integral components: 1. Also known as internal customers. his achievements.anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the “on-the-job” performance of the employee. Subordinate’s appraisal 4. Peer appraisal. also known as 'multi-rater feedback'.360 degree feedback.e. leadership qualities etc. customers. subordinates. managers (i. Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses. team members. 360 degree respondents for an employee can be his/her peers. Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities. superior’s ability to delegate the work. . suppliers/ vendors . the correct feedback given by peers can help to find employees’ abilities to work in a team. is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job. and judge his own performance. Superior’s appraisal forms the traditional part of the 360 degree appraisal where the employees’ responsibilities and actual performance is rated by the superior. Superior’s appraisal 3.

Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behavior and performance. . Infosys. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro. It provides a "360degree review" of the employees’ performance and is considered to be one of the most credible performance appraisal methods. 360 degree appraisal is also a powerful developmental tool because when conducted at regular intervals it helps to keep a track of the changes others’ perceptions about the employees. and Reliance Industries etc. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles.

UNIQUE FEATURES AND ADVANTAGES OF MBO . when employees themselves have been involved with the goal setting and the choosing the course of action to be followed by them. The essence of MBO is participative goal setting. An important part of the MBO is the measurement and the comparison of the employee’s actual performance with the standards set. choosing course of actions and decision making. It can be defined as a process whereby the employees and the superiors come together to identify common goals. they are more likely to fulfill their responsibilities.MANAGEMENT BY OBJECTIVES The concept of ‘Management by Objectives’ (MBO) was first given by Peter Drucker in 1954. the employees set their goals to be achieved. the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed. Ideally.

Goals and standards are set for the performance for the future with periodic reviews and feedback. performance appraisal not only let the employee know about how well he is performing but also influences the employee’s future level of effort. when properly conducted. not only the performance of an employee is evaluated but also his potential for development. The goals thus set are clear. .   Thus. Better communication and Coordination – Frequent reviews and interactions between superiors and subordinates helps to maintain solve many harmonious relationships within the enterprise and also problems faced during the period. activities. Motivation – Involving employees in the whole process of goal setting and increasing employee empowerment increases employee job satisfaction and commitment.  The focus is on future rather than on past. Some of the important features and advantages of MBO are: Clarity of goals – With MBO. goals that are: • • • • • Specific Measurable Achievable Realistic.The principle behind Management by Objectives (MBO) is to create empowered employees who have clarity of the roles and responsibilities expected from them. results and takes appropriate direction. motivating and there is a linkage between organizational goals and performance targets of the employees. understand their objectives to be achieved and thus help in the achievement of organizational as well as personal goals. Under performance appraisal. came the concept of SMART goals i.e. and Time bound.


The present study is also of the same nature.” Thus a good sample is a miniature version of the population and good sample design involve the following: • • • Sample Unit Sampling Techniques Sample Size Sample Unit: Since the objective of the present study was to analyze the employees attitude towards potential and performance appraisal. The choice of suitable method can be arrived at through assessment of objectives and comparison of various alternatives. Non-probability sampling . Since there are many aspect of research methodology.thus employees of Thomson press ar taken as sampling unit. the only alternative thus is to resort to sampling. Research methodology used in the present study is as under: Type of research: Sample Design: Present study is Descriptive in nature. Sampling technique: The procedure that a researcher adopts in selecting the unit for the sample is known as sampling technique. collecting of facts or data. In the present study. the line of action has to be chosen from a variety of alternative. In most of the research studies.RESEARCH METHODOLOGY Research methodology is the systematic method/process dealing with identifying problem. It also comprised of a number of alternative approaches and inter-related and frequently overlapping procedures and practices. According to Manheim (1977). analyzing these data and reaching at certain conclusion either in the form of solutions towards the problem concerned or certain generalization for some theoretical formulation. “a sample is a part of the population which is studied in order to make inferences about the whole population. it become almost impossible to examine the entire universe.

. Data collection method Both primary and secondary data has been collected in this research. websites. Sample Size: The sample size was taken as 50. Thus the decisions were taken on the basis of following attributes: Data Source Research approaches Research instrument Sampling plan Contract method Survey Questionnaire Sample size direct interview Primary data & secondary data. The 10 questionnaires were discarded because of the incomplete information. Secondary data has been collected from journals. and research articles from magazines while the primary data has been collected through the well-structures comprehensive questionnaire. Judgmental sampling has been used but utmost care has been taken employees from all the profiles in the organization.has been used. Thus the effective sample size was 40.


To make a decision in any business situation we need data. Facts expressed in quantitative form can be termed as data. Success of any statistical investigation depends on the availability of accurate and reliable data. So the data can be classified either as primary data or secondary data.  PRIMARY DATA: It is the data, which is collected afresh for the research study. This type of data is collected for the very first time by the investigator himself and has never been used by any other person earlier. The various methods of the collection of the primary data are as follows:  Questionnaire  Observation  Interviews  SECONDARY DATA: When the data is collected by one person and used by the others for their research, this type of data is called secondary data. The researcher uses the data for his research, which is already available or collected by other. The various methods of collection of secondary data are as follows:  Newspapers  Magazines  Reports & Journals  Internet For this project, I have used both the types of data i.e. primary as well as secondary data.

Primary Data used in this project are as follows:  Questionnaire filled by the employees.  Personal Interviews of the employees.

Secondary Data used in this project are as follows:  Reports of the organization.  Journals of the organization.  Internet (Website of the organization)

) AWARENESS OF APPRAISAL SYSTEMS AMONG THE EMPLOYEES IN THE ORGANIZATION. Awareness of potential appraisal 13% 25% 13% YES NO MODERATELY 49% CANT SAY . Performance appraisal A areness of perform w ance appraisal N O 13% YS E 87% YE S N O Potential appraisal.DATA ANALYSIS 1.

ANALYSIS: In sample size of 40. 87% of the employees are fully aware of performance appraisal in the organization but 13% of employees are not aware of this while analysis of awareness of potential appraisal shows that 49% employees are fully aware of the potential appraisal while 25% are somewhat aware. . This shows that potential appraisal being a newer concept is not known much to the employees even when it is used by the employees generally before giving promotions and new projects. 13% are not aware and cant say respectively. INTERPRETATION: This analysis shows that most of the employees are aware of the performance appraisal in the organization but the awareness of potential appraisal of employees in the organization is not very high.

PERFORMANCE APPRAISAL: Performance appraisal 25% 13% 62% YES N O SOMEWH AT ANALYSIS: In the sample 62% of the employees completely understand why it is used in the organization while 25% of the employees understand it a little bit but not completely and 13% of the employees do not understand why it is used in the organization.) UNDERSTANDING OF REASON OF USAGE OF THESE APPRAISALS. . INTERPRETATION: More than half of the employees understand why it is used in the organization but still high percent of employees do not understand it so it shows lack of communication with regard to appraisal in the organization.2.

3. 38% of them are appraised twice and 37% are appraised once a year. INTERPRETATION: This analysis shows that all the employees undergo this appraisal once a year and more than half of the employees undergoes this appraisal twice or more in a year indicating that this is a regular affair in the organization. .) HOW MANY TIMES YOU HAVE BEEN APPRAISED LAST YEAR? PERFORMANCE APPRAISAL: Performance appraisal 25% 37% 38% ONCE TWICE THRICE ANALYSIS: In the sample 25% are appraised thrice a year.

INTERPRETATION: With the analysis it is concluded that potential appraisal is not as regularly done in the organization as the performance appraisal although it is conducted once a year for all the employees. .POTENTIALAPPRAISAL: Potential appraisal 0% 38% 62% ON CE TWICE TH RICE ANALYSIS: In the sample 62% of the employees are appraised once a year while 38% says that they are appraised twice a year.

4. POTENTIAL APPRAISAL: Potential appraisal 13% 25% 62% SUPERIOR PEER SELF .) WHO IS THE APPRAISER? PERFORMANCE APPRAISAL: Performance appraisal 25% 0% 75% SUPERIOR PEER TOP MANAGEMENT ANALYSIS: In the sample 75% of the employees performance are been appraised by their superiors while 25% of the employees are appraised by their peers.

INTERPRETATION: Most of the employees potential is been appraised by the superiors and about 25% of the employees are provided the opportunity to appraise themselves this shows that a certain level of decentralization is their in the organization which is essential for the success of the organization. .ANALYSIS: in the sample 62% of employees potential is been appraised by their superiors while for 25% of the employees self appraisal technique of potential appraisal is used and 13% employees are been appraised by their peers for judging their potential.


ANALYSIS: In the sample almost employees sees the performance appraisal as a fair and justified process and some don’t have any opinion about the fairness of the process while the process of potential appraisal is not seen as fair and justified process by the employees as performance appraisal. . Some of the employees see it as a unfair and unjustified process. INTERPRETATION: From the above analysis it can be concluded that the process of appraisal of performance in the organization is perceived fair and justified while the potential appraisal is not so fair and justified it is because the employer is not able to completely find the potential of the employees and also the less awareness of this appraisal process in the organization.

6. .) DOES THESE APPRAISALS RESULTS IN MOTIVATION? PERORMANCE APPRAISAL Performance appraisal 13% 0% 13% 74% YES MODERATELY NO CANT SAY POTENTIAL APPRAISAL Potential appraisal 0% 25% 13% 62% YES MODERATELY NO CANT SAY ANALYSIS: the performance appraisal process completely motivates about 75% of the employees in the organization while the potential appraisal process only moderately motivates about 62% of the employees the organization and also about 25% of them are not at all motivated at all.

. This shows that the employees performance is properly realized and analysed in the organization while the employers are unable to properly realize their potential i.INTERPRETATION: This analysis shows that the performance appraisal is more helpful in motivating the employees while potential appraisal is able to motivate employees only moderately.e talents.

. INTERPRETATION: It is concluded that these appraisal are perceived by most of the employees as necessary in the organization and they take these appraisals in a positive manner.) DOES THESE APPRAISALS CREATE ANY ANXIETY OR STRESS IN THE EMPLOYEES? PERFORMANCE APPRAISAL Performance appraisal 5% 10% 21% 64% YES MODERATELY NO CANT SAY POTENTIAL APPRAISAL Potential appraisal 15% 5% 25% 55% YES MODERATELY NO CANT SAY ANALYSIS: from the sample study it is found that this appraisal does not cause any anxiety or stress to most of the employees however about 30% of the employees feel some mental stress and anxiety with these appraisals.7.

INTERPRETATRION: Generally this performance appraisal results in job enrichment of employees in the organization followed by promotion and job rotation. . 25% job rotation.8.25% promotion and 13% no change as a result of their performance appraisal.) OUTCOME OF THE APPRAISALS? PERFORMANCE APPRAISAL Performance appraisal 13% 25% 25% 37% PROMOTION JOB ROTATION JOB ENRICHMENT NO CHANGE ANALYSIS: in the sample about 37% of the employees get their job enriched.

POTENTIAL APPRAISAL Potential appraisal 13% 25% 62% NEW PROJECTS NO CHANGE CANT SAY ANALYSIS: In the sample the potential appraisal results in no change for more than half of the employees while some 25% of the employees get new projects after their potential appraisals. INTERPRETATION: It is concluded that this potential appraisal is not resulting in more fruitful results for the employees as they are already provided with the projects as per their potential. .

.) LEVEL OF SATISFACTION AMONG EMPLOYEES WITH THE RESULTS OF THE APPRAISAL? PERFORMANCE APPRAISAL Performance appraisal 13% 25% 62% 0% YES NO CANT SAY MODERATELY POTENTIAL APPRAISAL: Potential appraisal 25% 50% 25% 0% YES NO CANT SAY MODERATELY ANALYSIS: About 62% of the employees are moderately satisfied with the results of performance appraisal while 50% of the emlployees are satisfied with the potential appraisal.9.

INTERPRETATION: Most of the employees are satisfied with the process of these appraisals in the organization however level of satisfaction of potential appraisal is less then the performance appraisal. . This appraisal also showing that employers are able to judge the potential and performance of employees upto to a certain level thus leading them to satisfaction.

INTERPRETATION: It is concluded that these appraisals are a regular affair in the organization as helping the organization to increase its effectiveness.10. .) REGULARITY OF APPRAISAL PERFORMANCE APRAISAL Perform aNce appraisal NO 25% YE S N O YS E 75% POTENTIAL APPRAISAL: Potential appraisal 0% 25% 75% YES NO ANALYSIS: Out of the sample about 75% of the employees says that these appraisals are regularly conducted in the organization.

. INTERPRETATION: As the potential is not been realized by the employers completely always so there is a need of involving the employees also in this appraisal so as to get more fruitful results of appraisal and realizing their potential to the fullest so as to make the optimal use of the talent of available man power.) EMPLOYER REALLY ABLE TO FIND OUT THE POTENTIAL OF THE EMLOYEES TRULY? Realisation of potential by employer 5% 8% 3% 84% ALWAYS SOMETIMES NEVER CANTSAY ANALYSIS: out of the sample about 84% of the employees feel that their potential is realized completely sometimes only while 10% don’t have any opinion whether their potential is realized completely by their employer or not.11.

12.) NEW PROJECTS ARE GIVEN TO EMPLOYEES ON THE BASIS OF WHICH APPRAISAL? prefrence for assisgning new projects 13% 38% 49% Potential Performance Both ANALYSIS: In the sample 49% of the employees are assigned on the basis of performance appraisal while 38% of the employees are assigned new projects on the basis of potential appraisal while 13% of the employees say that both the appraisals are considered for assigning new projects. INTERPRETATION: Analysis shows that performance appraisal is been preferred by employers for assigning new projects this is because of the lack of awareness of potential appraisal benefits and also it is a newer concept so preferred less. .

) WHICH APPRAISAL IS A BETTER TECHNIQUE? comparision of techniques 25% 25% 50% Potential Performance Cant say ANALYSIS: Out of the sample 50% of the employees believe that performance appraisal is a better technique while 25% believes potential appraisal is a better technique and rest 25% can not say anything about which appraisal technique is better. INTERPRETATION: Both the appraisals are equally important for the organization to attain the objectives of the organization. .13.

INTERPRETATION: Both the appraisals have their own benefits so most of the employees believes that both the appraisals together should be emphasized for appraising them. .14.) EMPLOYEES OPINION ON WHICH APPRAISAL TECHNIQUE SHOULD BE LAID MORE EMPHASIS ON? Employees opinion 25% 38% 37% POTENTIAL PERFORMANCE BOTH ANALYSIS: In the sample 38% of the employees believes that both the appraisals should be emphasized equally while 37% of the employees says that performance appraisal should be emphasized by employer and 25% of the employees prefer potential appraisal to be emphasized by their appraiser.

INTERPRETATION: There is a need to make these appraisals more transparent and fair so as to increase the effectiveness of the organization.15.) DO THESE APPRAISALS PROVIDE WITH THE UNBIASED RESULTS? Unbiasness in appraisal results 13% 0% 25% 62% YES SOMETIMES NO CANT SAY ANALYSIS: In the sample 62% of the employees says that these appraisals provide unbiased results sometimes only while 25% says that they did not get unbiased results from these appraisals and 13% cant say anything. .

16.) ESSENTIALNESS OF THESE APPRAISALS IN CREATING WORK CULTURE OF COOPERATION AND TEAM WORK IN THE ORGANISATION? Essentiality in creating work culture 14% 14% 58% 14% YES MODERATELY NO CANT SAY ANALYSIS: In the sample 58% employees believes that these appraisals are essential for creating a work culture of cooperation and team work in the organization while 14% of the employees do not believe that it is essential. . INTERPRETATION: This analysis shows that these appraisals are necessary for creating a work culture of cooperation and team work.

INTERPRETATION: These appraisals are benefitial for the organization as it allows the organization to achieve the goals in an effective manner.) IMPACT OF THESE APPRAISALS ON THE DEVELOPMENT OF ORGANISATION Impact on organisation development 8% 30% 62% POSITIVE NEUTRAL NEGATIVE ANALYSIS: In the sample 62% of the employees believe that these appraisals have a positive impact on the development of the organization and 8% of the employees believe that these appraisals create a negative impact on the organization while rest 30% believes that these appraisals have no effect. .17.

) REALISATION OF TRAINING NEEDS FROM THESE APPRAISALS? Training needs 2% 2% 29% 67% ALWAYS SOMETIMES NEVER CANTSAY ANALYSIS: In the sample 67% of the employees says that these appraisals sometimes result in training needs and 29% says that there is always a need of training been realized with these appraisals.18. . INTERPRETATION: These appraisals are benefitial for the organization as they allow the employers to find out the training needs so that they could take a timely action.

) DOES COMPENSATION PACKAGE IS DESIGNED ON BASIS OF THESE APPRAISALS? relation b/w compensation design and0% 13% appraisal 49% 38% YES MODERATELY NO CANTSAY ANALYSIS: 49% of the employees say that their compensation package is not related at all with their appraisals while 38% believes that sometimes it is related and 13% of the employees believe that it is related with their appraisals.19. INTERPRETATION: These appraisals have no impact on the compensation package of the employees. .


so as to achieve unbiased results. weightage for appraising an employee. • • • Regularity: These appraisals are regularly conducted in the Motivation: these appraisals helps in motivating the employees Satisfaction: employees are satisfied with the results of these organization. thus are beneficial for both the employees and organization appraisals but this satisfaction level is not as desired so there is a need to make these appraisals more fair and justified. • • • • These appraisals are not considered much while designing the Employees want that both the appraisals should be given equal There is a need of making these appraisals more fair and justified Employers are not able to realize the employee’s potential fully compensation package of employees.FINDINGS: As evident from the data analysis various findings are as follows: • Awareness: most of the employees were aware of these appraisals but the level of awareness of performance appraisal is higher than potential appraisal. • Understanding: although employees know about these appraisals but very few completely understands why these appraisals are done and used in the organization. • • These appraisals help the organization to find out the training These appraisals are also creating a work culture of cooperation needs in the organization. and team work in the organization thus impacting the organization development in a positive manner. through these appraisals so more communication and participation of employees in these appraisals is required. . • Potential appraisal being a newer concept is not preferred much as performance appraisal because of the lack of awareness of this appraisal technique.

the organization. .• • These appraisals are not creating any mental stress or anxiety in These appraisals are very essential for the effective working of the employees even when it is not motivating the employees.


. performance and potential appraisal there is still more emphasis laid by the organizations although potential appraisal is a future oriented approach its lack of awareness and it being a newer approach it is been resisted by some in the organization but because of the benefits which this appraisal will yield employers are moving towards making a balance between the two appraisals in the organization. Out of the two appraisal systems viz.CONCLUSIONS In a nutshell. they believe that these appraisals are necessary in the organization for creating a work culture of team work and cooperation and to attain the organizational objectives effectively. Also the employees want a more effective appraisal system that is they want that their participation should be their and these appraisals should be more transparent and fair. the analysis of the data collected from the sample revealed that the employees have a positive attitude towards the conductance of these appraisals.


• The employers must relate the designing of the compensation package with the result of their appraisals as this will help in increasing the employees motivation level and also will result in better performance of their job.SUGGESTIONS • There is a need of creating more awareness about potential appraisal as it being a future oriented approach can yield better results for the organization. A proper feedback must be given to employees so that they can take the required actions for improving their performance and potential to the desired level. . Potential appraisal should also be done regularly as performance appraisal in the organization. • • • • • These appraisals need to be done with utmost care as they help the organization to optimally utilize their man power. There should be a better communication among employees and appraiser so that these appraisals could result n unbiased and fair results. Employees’ participation in these appraisals should be there as it will allow them to attain success. • • The employers must use these appraisals as a tool for motivating employees to make them more effective. These appraisals should also be used in succession planning of employees of the organization.


QUESTIONNAIRE 1) NAME 2) DESIGNATION 3) AGE GROUP 20-30 30-40 40-50 50-60 4) Do you know what performance appraisal is? YES NO 5) Do you understand why it is used? YES SOMEWHAT NO MORE 6) How many times you have been appraised last year? ONCE TWICE THRICE 7) Who appraises your performance? TOP MANAGEMENT PEERSSUPERIORS CAN’T SAY 8) Do you feel that the process is fair and justified? YES MODERATELY NO 9) Does the process of performance appraisal motivate you in any way? YES MODERATELY NO CAN’T SAY 10) Does this appraisal create anxiety or mental stress to you? YES MODERATELY NO CAN’T SAY 11) What is the outcome of the appraisal? PROMOTION JOB ENRICHMENT JOB ROTATION NO CHANGE 12) Do you feel satisfied with the results? YES MODERATELY NO CAN’T SAY 13) Is this appraisal a regular affair in your organization? YES NO 14) Who appraises your potential? SUPERIOR PEER Self MORE 15) How many times you go through the process in a year? ONCE TWICE THRICE 16) Do you feel the process is fair and justified? YES MODERATELY NO CAN’T SAY .

17) Does this process of performance appraisal create mental stress or anxiety in you? YES MODERATELY NO CAN’T SAY 18) Do you feel satisfied with the results of appraisal? YES MODERATELY NO 19) What you feel is a better technique of appraisal? POTENTIAL PERFORMANCE CAN’T SAY CANT SAY 20) Which technique according to you should be laid more emphasis on by your employer? PERFORMANCE POTENTIAL BOTH EQUALLY .


thomsonpress. 1993 Organizational Behavior. Himalaya Publishing House. Robbins Stephen. Fred. .com www. http://appraisals. Personal Management. P. Bombay. New www. Singapore. McGraw Hill Book Company..BIBLIOGRAPHY & REFERENCE WEBSITES • • • • • BOOKS • • • • India Private Limited.openlearning. Prentice-Hall of www. Organizational behavior. Organizational Behavior. Memoria C.naukrihub..

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