ABSTRACT

The purpose of this study was to determine the factors which the employees in the organization preferring for their appraisal and the employees satisfaction with the existing appraisal system. The results of the current study can be used by organizations to develop policies, practices, and strategies regarding their appraisal system and can create greater efficiencies in meeting strategic business objectives. Findings were made based on the data collected from 150 employees with the aid of a questionnaire in which 5-point likert scale and rating scale were employed. Most of the respondents rated both subjective and objective measures as preferable. It was also found that some employees surveyed are dissatisfied with their present organization appraisal methods and there are great chances that they may leave their employer if they get better job opportunities from any better employer. The employers must pay attention to this situation and design effective methods as remedies at the earliest or else they may soon lose their efficient workforce.

CHAPTER 1 INTRODUCTION

1.1 INTRODUCTION TO THE TOPIC Performance appraisal is a method of evaluating the behaviour of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance. It is a systematic and objective way of evaluating both work related behaviour and potential of employees. It is a process that involves determining and communicating to an employee how he or she is performing the job and ideally, establishing a plan of improvement. Performance appraisal has two over arching goals: 1. To encourage high levels of worker motivation and performance. 2. To provide accurate information to be used in managerial decision making. These goals are interrelated because one of the principal ways that managers motivate workers is by making decisions about how to distribute outcomes to match different levels of performance. Developing a Performance Appraisal System Managers can use the information gained from performance appraisal for two main purposes: 1. Developmental purposes such as determining how to motivate a worker to perform at a high level, evaluating which of a worker's weaknesses can be corrected by additional training, and helping a worker formulate appropriate career goals.

2. Evaluative, decision-making purposes such as deciding whom to promote, how to set pay levels, and how to assign tasks to individual workers. Methods of Appraisal The measures managers use to appraise performance can be of two types: objective or subjective. • Objective measures such as numerical counts are based on facts. They are used primarily when results are the focus of Performance appraisal. The number of televisions a factory worker assembles in a day, the dollar value of the sales a salesperson makes in a week, the number of patients a physician treats in a day and the return on capital, profit margin, and growth in income of a business are all objective measures of performance. • Subjective measures are based on individuals' perceptions, and can be used for appraisals based on traits, behaviors, and results. Because subjective measures are based on perceptions, they are vulnerable to many of the biases and problems that can distort person perception. Because there is no alternative to the use of subjective measures for many jobs, researchers and managers have focused considerable attention on the best way to construct subjective measures of performance. • 360-degree appraisal - a worker's performance is evaluated by a variety of people who are in a position to evaluate it. A 360-degree appraisal of a manager, for example, may include evaluations made by peers, subordinates, superiors, and clients or customers who are familiar with the manager's performance. The manager would then receive feedback based on evaluations from each of these sources. When 360- degree appraisals are used, managers have to be careful that each evaluator is familiar with the performance of the individual he or she is evaluating. While 360-degree appraisals can be used for many different kinds of workers they are most commonly used for managers.

1.2 STATEMENT OF THE PROBLEM The performance appraisal of the employees in the organization should be an effective tool for measuring the employee’s performance. If the performance not measured in a real manner it will be a critical issue. A study on impact of performance appraisal was undertaken to study the reasons and ways to improve the condition. 1.3 OBJECTIVES OF THE STUDY

The present study on “impact of performance appraisal system” was undertaken with the following objectives:

• • • • •

To find whether the existing appraisal system in the organization exactly measures the employee’s performance. To find whether the feedback from the appraisal system assists in the employee’s training and development. To determine the gaps in the existing system. To determine what type of appraisal did the employee’s really looking for. To find is there is any opportunities provided for the employees to improve their performance.

1.4 SCOPE OF THE STUDY The scope of the project is fully dependent upon the objectives of the project. • • • • • This study can be helpful to the compan y for conducting any further research. The stud y is also helpful in finding out the respondent’s opinion towards certain attributes. It is also helpful in finding out the reach and effectiveness of the performance appraisal system. This study also serves as a base for understanding the perception about the emplo yees regarding their performance appraisal. With the results of the study the company can improve their standards of their appraisal system

1.5 HYPOTHESIS OF THE STUDY The study includes the calculation of null hypothesis and alternative hypothesis by comparing age group of the respondents and preference of the appraisal system. Null hypothesis is used for testing. It is a statement that no difference exists between the parameter and statistics being compared to it. The alternative hypothesis is the logical opposite of the null hypothesis

1.6 LIMITATIONS OF THE STUDY

Time and resource were the major constraints during the execution of the project. Therefore only a limited number of employees were included in the project.

• • • • •

The respondents were selected inside the organization only. So it cannot be generalized as a whole. Some of the respondents were not even ready to spare time with the researcher. There are many respondents who hesitated to answer the questionnaire. The human behaviour is dynamic and hence the results may not hold good for a long time. The results of the survey are totally dependent on the accuracy and authenticity of the information provided by the respondents.

1.7 CHAPTERIZATION OF THE PROJECT The project done is being explained under five different chapters: • • • • • Introduction Concepts and review Research methodology Data analysis and interpretations Results and Discussions

CHAPTER 2 CONCEPTS AND REVIEW
2.1 CONCEPTS OF THE STUDY 2.1.1 Definition of Performance Appraisal A formal and systematic process, by means of which the job relevant strength and weakness of the employees are identified, observed, measured and developed. 2.1.2 Concept of Performance Appraisal In the best of worlds, employees would love their jobs, like their coworkers, work hard for their emplo yees, get paid well for their work, have ample chances for advancement, and flexible schedules so they could attend to personal or famil y needs when necessary. The performance appraisal is to assess a person and let him to know where he is being standing along with the job. It is to find whether he is performing with his task or not. 2.2 REVIEW OF REL ATED LITER ATURE M Bowels and G Coates (1993) The Management of Performance as Rhetoric on Reality ARGUMENT: Managers are mostly appraised by results, but results alone cannot reflect performance because it is still affected by many other factors.

RESEARCH: The managers. problems faced by the organization experiencing some

difficulties were measuring performance and the extra demands made on

CONCLUSION: Management should provide the enabling conditions through which work is performed. Performance appraisal should be an opportunistic means to address performance issues rather than a coherent systematic process. D Winstanel y and K Stuart-Smith (1996) RESEARCH:  Conclusive evidence that leads to improved performance is lacking.  Not enough time is given to the process.  It reinforces modes of intrusive control. CONCLUSION: The focus must move awa y from measurement and judgement towards developing, understanding and building up trust to allow a genuine dialogue to take place. 2.3 COMPANY PROFILE Span systems a matured growing IT services company with 14 years of experience. The company focussing on optimizing and aligning IT initiatives with business strategies.

The company has achieved a CMM level 4 and ISO 9001-2000 and expecting to achieve CMM level 5. Sales offices at USA, Sweden and in India give the company for easy access to global markets. The company have multiple development centres in Bangalore and planned to expand their services to all over the India. The business model deliver value through optimal use of offshore and onsite resources and through managed relationships under the RM model. Clients get the value through the pragmatic approach to an engagement rather than a cost based model or a purely process driven model. Irrespective of activity with the clients the company have demonstrable methods of showing enhanced productivity. IT Infrastructure • • • • • • 15000 sq.ft. offshore It development facility 128 kbps dedicated 24*7 internet access with secure firewall protection. Intel Pentium 4/ windows 2000, sun Solaris and Intel based red Linux servers. 40+ workstations, TCP based 100/1000 MBPS Ethernet LAN on 100 MBPS switches Complete data backup recovery infrastructure with disaster recovery facility In – house training facilities.

2.4 PRODUCT PROFILE IT Services Span systems are tailor- made to clients needs and built around the following key areas relevant to any business enterprise:

• • •

Application development- customized software applications based on the architecture constructed by our business consulting services. Business intelligence- productivity solutions that empower decision makers to access data across the enterprise. Education and training- training and up gradation of skills in data modelling, UML modelling, data ware housing and business intelligence for corporate.

Contracting People, project and system recovery support. Span systems offers solutions that are strategically aligned with corporate business goals. Span systems undertake mobilization of personnel under placement at the client identified locations. On request, or at the conclusion of the contract period, the deputed personnel are demobilised from the client sites. IT Expertise • • • • • • • • • Operating systems: windows 98/2000/XP, Red Hat Linux and Sun Solaris. Development Tools: Visual Basic, Power Builder, Oracle Developer. Databases: Oracle, Sybase, SQL Server,DB2 and MySql UML Modelling tools: describe and rational rows. Data modelling tools: ER Studio, ER Win and power designer Groupware: Lotus notes/domino, MS exchange. Business intelligence: Oracle discoverer, business objects and congas. Data warehouse tools: DT Studio Web tools: Macro media dream weaver/flash and adobe Photoshop.

CHAPTER 3

METHODOLOGY
3.1 INTRODUCTION Research is a scientific and systematic search for pertinent information on a specific topic. Research is an art of scientific investigation. According to Clifford Woody, “Research comprises defining and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions and reaching conclusions and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis”. 3.2 RESEARCH DESIGN Research design aids the researcher in the allocation of limited resources by posing crucial choices in methodology. Research design is the plan and structure of investigation so conceived as to obtain answers to research questions. The plan is the over all scheme or program of the research. It includes an outline of what the investigator will do from writing hypothesis and their operational implications to the final analysis of data. DESCRIPTIVE RESE ARCH DESIGN The design for this study is descriptive research design. This design was chosen as it describes accuratel y the characteristics of a particular s ystem as well as the views held by individuals about the system. The views and opinions of emplo yees about the system help to study the suitability of the system as well as the constraints that might restrict its effectiveness 3.3 S AMPLING TECHNIQUES

The sampling technique adopted for the purpose of the stud y is convenience sampling. As the name implies a convenience sample means selecting particular units of the universe to constitute a sample. S AMPLE SIZE The sample size of the study is 150. This sample is considered as representative. 3.4 DATA COLLECTION PRIM ARY SOURCE: The primary source of data is through Questionnaire. SECOND ARY SOURCE: The secondar y source of information is based on the various details retrieved from Journals, Websites and Magazines. The data for this study has been collected through primary sources. Primary data for this study was collected with the help of Questionnaires and evaluation feedback forms. The extra information was collected through interviews with the employees at various companies.

3.5 TOOLS OF THE STUDY 3.5.1 Tool used for data collection: The tool used for collecting the data is through the questionnaire. The main reason for selecting the questionnaire method for the stud y is: • • • Respondents have adequate time to give well thought out answers. The time of the study was also a limiting factor. Five pointer scales were use through the Questionnaire.

3.5.2 Statistical tools used Statistical tools like Tabulation, Graphic Representations,

percentage anal ysis and, Chi-Square, are used in the compilation and computation of data. Chi-Square Test The Chi-Square test is one of the simplest and most widely used non-parametric test in statistical work. It is practically useful in tests involving nominal data. It can be used for higher scales. It makes no assumptions about the population being sampled. If Chi-Square is zero it means that the observed and the expected frequencies completely coincide, while the greater the value of Chi-Square is , the greater would be the discrepancy between observed and the expected frequencies. The formula for computing Chi-Square is CHI-SQUARE = (O-E)2 / E Where O = Observed Frequency, E = Expected Frequency

The calculated value of chi-square is compared with the table value of chi-square for given degrees of freedom of specified level of significance. If the calculated value of chi-square is greater than the table value the difference between the theory and the observed is considered to be significant, i.e., it could not have risen due to fluctuations of simple sampling. On the other hand if the calculated value is less than the table value, the difference between the theory and observation is not considered significant, i.e., it could have risen due to fluctuations of sampling. The number of degrees of freedom is described as the number of observations that are free to vary after certain restrictions have been imposed on the data. For a uniform distribution, we place one restriction on the expected distribution - the total of sample observations.

PERCENTAGE ANALYSIS: Percentage refers to a special kind of ratio. Percentage is used in making comparison about two or more series of data. Percentage as also used to describe relationship. It is also used to compare the relative terms of two or more series of data. Formula: Number of respondents × 100 Total no. of respondent

3.5.3 AREA OF THE STUDY To study the Impact of Performance Appraisal System at SPAN Systems, Bangalore.

3.5.4 CLOSED-ENDED QUESTIONS Such questions are also called fixed alternative questions. This method is also facilitators the respondent to answer in some other way on other alternative is provided as a choice.

CHAPTER – 4 ANALYSIS AND INTERPRETATION 4.1 ANALYSIS OF THE DATA

Table 1 Table showing Sex of the respondents sex no. of respondent s Male 132 female 18 Source: Primary data Inference From the above table it is inferred that out of 50 respondents 88% of them are male and 12% of the respondents are female. Simple percentage 88 12

Figure 1
sex of the respondents
100 90 80 e 70 g 60 a t n 50 e c 40 r e p 30 20 10 0 88

12

male sex

female

Table 2 Table showing age group of the respondents Age group 19-23 24-28 29-33 34-38 Above 38 No. of respondent s 15 42 27 27 39 Simple percentage 10 28 18 18 26

Source: Primary data Inference The above table shows that 28% of the respondents are between the ages 24-28, 26% of the respondents are above 38, 18% of the respondents are 29-33 and 34-38 and only 10% of the respondents are between the ages 19-23.

Figure 2

Table 3 Table showing the date of joining of the respondents Date of joining 71-80 81-90 91-2000 2001-07 No of respondent s 03 15 30 102 Simple percentage 02 10 20 68

Source: Primary data Inference The above table 68% of the respondents are joined during 2001-07, 20% of the respondents are joined during 91-2000, 10% of the respondents are joined during 81-90 and 2% of the respondents are joined during 71-80.

Figure 3

Table 4 Table showing the preference of the appraisal Preference of appraisal No of respondent s Peers 15 Subordinates 21 Supervisors 114 Source: Primary data Inference The above table shows that 65% of the respondents prefer supervisors appraisal, 20% of the respondents prefer subordinates appraisal and remaining 10% of the respondents prefer peers appraisal. Simple percentage 10 14 76

Figure 4

Table 5 Table showing the basis of the performance appraisal No of respondent s 18 12 120 Simple percentage 12 08 80

Basis of performance appraisal Quality Target Both

Source: Primary data

Inference The above table shows that 80% of the respondents prefer both the quality and target for their basis of performance appraisal, 12% of the respondents prefer quality alone and 8% of the respondents prefer target alone.

Figure 5

Table 6 Table showing frequency of the appraisal system Frequency of appraisal Monthly Half yearly Annual 360 degree No of respondents 09 60 75 06 Simple percentage 06 40 50 04

Source: Primary data

Inference From the above table shows that 50% of the respondents prefer annual appraisal, 40% of the respondents prefer half yearly appraisal, 6% of the respondents prefer monthly appraisal and 4% of the respondents prefer 360 degree appraisal.

Figure 6

Table 7 Table showing performance appraisal Performance appraisal based on Personality traits Behaviour Results All the above No of respondent s 06 09 15 120 Simple percentage 04 06 10 80

Source: Primary data Inference From the above table shows that 80% of the respondents prefer personality traits, behaviour and results, 10% of the respondents prefer results alone, 6% of the respondents prefer behaviour, 4% of the respondents prefer personality trait

Figure 7

Table 8 Table showing types of appraisal Types of appraisal Subjective Objective Both No of respondent s 18 18 114 Simple percentage 12 12 76

Source: Primary data Inference The above table shows that 76% of the respondents prefer both subjective and objective factors, 12% of the respondents prefer subjective alone and 12% of the respondents prefer objective alone.

Figure 8

Table 9 Table showing any gender discrimination Based on gender, any No of respondent Simple percentage

discrimination Yes No

s 48 102 32 68

Source: Primary data Inference The above table shows that 68% of the respondents said that there is no gender discrimination and the remaining 32% said there is gender discrimination.

Figure 9

Table 10 Table showing daily contact at the time of appraisal

Daily contact at the time of appraisal SA A NC D SD

No of respondents 09 72 30 33 06

Simple percentage 06 48 20 22 4

Source: Primary data Inference The above table that 48% of the respondents agree that they are having daily contact, 22% of the respondents are having no comment, 20% of the respondents are disagree with the daily contact, 3% of the respondents are strongly agree with the daily contact and 2% of the respondents are strongly disagree with the daily contact.

Figure 10

Table 11

Table showing feedback given at the time of appraisal Feedback given at the time of appraisal SA A NC D SD No of respondent s 21 84 30 12 03 Simple percentage 14 56 20 08 02

Source: Primary data Inference The above table shows that 56% of the respondents are agree with the feedback given at the time of appraisal, 20% of the respondents given no comment, 8% of the respondents are disagree with the feedback, 14% of the respondents are strongly agree with the feedback and 2% of the respondents are strongly disagree with the feedback given at the time of appraisal.

Figure 11

Table 12 Table showing appraisal evaluates strength and weaknesses Appraisal evaluates strength and weaknesses SA A NC D SD No of respondent s Simple percentage

36 63 36 09 06

24 42 24 06 04

Source: Primary data Inference The above table shows that 42% of the respondents agree with evaluating their strength and weaknesses, 24% of the respondents are strongly agree with their evaluation, 24% of the respondents given no comment based on their evaluation,6% of the respondents are disagree with the evaluation and 4% of the respondents are strongly disagree with the evaluation of strength and weaknesses.

Figure 12

Table 13 Table showing exactly evaluates the skill gaps Exactly evaluates the skill gaps SA A NC D SD Source: Primary data Inference The above table shows that 56% of the respondents are agree with evaluation of skill gaps, 26% of the respondents given no comment, 10% of the respondents are strongly agree with evaluation of skill gaps and 8% of the respondents are disagree with the evaluation of the skill gaps. No of respondent s 15 84 39 12 00 Simple percentage 10 56 26 08 00

Figure 13

Table 14 Table showing is the organization providing effective training Organizatio n providing effective training SA A NC D SD No of respondent s 36 48 54 09 03 Simple percentage

24 32 36 06 02

Source: Primary data Inference The above table shows that 36% of the respondents given no comment regarding effective training, 32% of the respondents are agree with the effective training, 24% of

the respondents are strongly agree with the effective training, 6% of the respondents are disagree with the effective training and 2% of the respondents are strongly disagree with the effective training.

Figure 14

Table 15 Table shows is the appraisal helps in personal growth Appraisal helps in personal growth SA A NC D SD No of respondent s 36 69 39 06 00 Simple percentage 24 46 26 04 00

Source: Primary data Inference

The table shows that 46% of the respondents are agree with their personal growth, 26% of the respondent’s given no comment, 24% of the respondents are strongly agree with their personal growth and 4% of the respondents are disagree with their personal growth.

Figure 15

Table 16 Table shows appraisal helps in promotion aspects Appraisal helps in promotion aspects SA A NC D SD No of respondent s 45 81 15 09 00 Simple percentage 30 54 10 06 00

Source: Primary data Inference

The table shows that 54% of the respondents are agree with the promotion aspects, 30% of the respondents are strongly agree, 10% of the respondents given no comment and 6% of the respondents are disagree with the promotion aspects.

Figure 16

Table 17 Table shows recommendation for job rotation Recommendation for job rotation Yes No No of respondents 120 30 Simple percentage 80 20

Source: Primary data Inference

The above table shows that 80% of the respondents recommended for their job rotation and 20% of the respondents are not recommended the job rotation for their development.

Chart 17

Table 18 Table shows recommendation for job enlargement Recommendatio n For job enlargement Yes No No of respondent s 135 15 Simple percentage 90 10

Source: Primary data Inference The above table shows that 90% of the respondents recommended for their job enlargement and 10% of the respondents are not recommended the job enlargement for their development.

Figure 18

recommendation for job enlargement
100 80 60 40 20 0 yes no 10
recommendation for job enlargement

90

Table 19 Table shows ideas to recommend for their

development Ideas to recommend for their development Yes No Source: Primary data Inference No of respondent s 30 120 Simple percentage 20 80

The above table shows that 80% of the respondents recommended their ideas for their development and 20% of the respondents are not recommended their ideas for their development.

Figure 19

Table 20 Table shows face to face interaction with the supervisor Face to face interaction with supervisor

No of respondent s 105 45

Simple percentage

Yes No

70 30

Source: Primary data Inference The above table shows that 70% of the respondents are agreeing with face to face interaction with the supervisor and 30% of the respondents are not agree with the face to face interaction with the supervisors.

Figure 20

Table 21 Table shows opportunities to improve performance Opportunities to improve performance No of respondent s Simple percentage

Yes No Source: Primary data Inference

129 21

86 14

The above table shows that 86% of the respondents are agree with their opportunities given by the organization and 14% of the respondents are not agree with the opportunities given by the organization.

Figure 21 Opportunities to improve performance

Table 22 Table shows appraisal changes your attitude/behaviour

Appraisal changes your Attitude /Behaviour Yes No Source: Primary data Inference

No of respondent s 105 45

Simple percentage 70 30

The above table shows that 70% of the respondents are agree with the changes in attitude and behaviour ant the remaining 30% of the respondents are disagree with the changes in attitude/behaviour during appraisal period.

Figure 22

Appraisal changes your Attitude/Behaviour
80 70 60 50 40 30 20 10 0 70

30

Appraisal changes your attitude

yes

no

Table 23 Table shows satisfied with CFR Satisfied with CFR Yes No Source: Primary data Inference The above table shows that 80% of the respondents are satisfied with CFR ratings and the remaining 20% of the respondents are dissatisfied. No of respondent s 120 30 Simple percentage 80 20

Figure 23

Table 24 Table shows increase of salary by performance ratings Performance ratings increase your salary Yes No Source: Primary data Inference The above table shows that 78% of the respondents are satisfied with the increase of salary through performance ratings and the remaining 22% of the respondents are dissatisfied. No of respondent s 117 33 Simple percentage 78 22

Figure 24

Table 25 Table shows happy with present appraisal system Happy with present appraisal Yes No Source: Primary data Inference The above table shows that 76% of the respondents are happy with the present appraisal system and 24% of the respondents are unhappy with the present appraisal system. No of respondent s 114 36 Simple percentage 76 24

Figure 25

4.2 HYPOTHESIS TESTING Chi-square test to find out the comparison between Age group of the respondents and the preference of performance appraisal types.

19-23 24-28 29-33 34-38 Above 38 TOTAL

SUBJECTIVE 09 09 18

OBJECTIVE 06 06 06 18

BOTH 27 27 21 39 114

TOTAL 15 42 27 27 39 150

Null Hypothesis There is no relationship between Age group of the respondents and the preference of performance appraisal types.

Alternative Hypothesis There is relationship between Age group of the respondents and the preference of performance appraisal types. Level of Significance 5% level of significance Test Statistics X2 = (Oi- Ei)2 Ei

Calculation Oi 9 6 0 9 6 27 0 0 27 0 6 21 0 0 39 Ei 1.8 1.8 11.4 5.04 5.04 31.92 3.24 3.24 20.52 3.24 3.24 20.52 4.68 4.68 29.64 (Oi- Ei)2 51.84 17.64 129.96 15.68 0.9216 24.206 10.497 10.497 41.990 10.497 7.617 0.2304 21.902 21.902 87.609 (Oi- Ei)2/ Ei 28.8 9.8 11.4 3.11 0.18 0.75 3.23 3.23 2.04 3.23 2.35 0.011 4.67 4.67 2.95 80.42

Inference The calculated value is 80.42 where as the tabulated value for (r-1) (c-1) i.e., (5-1)

(3-1) for 5% level of significance is 15.507. Thus calculated value is greater than the tabulated value. The null hypothesis is rejected and the alternative hypothesis i.e., There is relationship between Age group of the respondents and the preference of performance appraisal types is accepted.

CHAPTER 5 5.1 FINDINGS OF THE STUDY • • • • • 88% of the respondents were male. Majority of the respondents (28%) are between the age of 24-28 and the low level (10%) was between the age of 19-23. 68% of the respondents are joined in the year of 2001-07 and the low level 2% were joined in the year of 1971-80. 65% of the respondents prefer supervisors for their appraisal and the low level 10% prefer peers for their appraisal. 80% of the respondents prefer both the quality and target for their basis of performance appraisal and low level 8% prefer target for their basis of performance appraisal. • • 50% of the respondents prefer the frequency of appraisal as annual and the low level 4% prefer 360 degree. 80% of the respondents prefer that performance appraisal should be based on all(personality traits, behaviour and results) and the low level 4% prefer personality traits.

• • • • • • • • • • • • • • •

76% of the respondents prefer both (subjective and objective) the appraisal and the low level 12% prefer subjective and objective appraisal. 68% of the respondents said that there is no gender discrimination. 48% of the respondents are agree with daily contact at the time of appraisal and the low level 2% were strongly disagree. 56% of the respondents are agree with feedback given at the time of appraisal and the low level 2% were strongly disagree. 42% of the respondents are agree with evaluation of the strength and weaknesses at the time of appraisal and the low level 4% were strongly disagree. 56% of the respondents are agree with evaluation of skill gaps and the low level 8% were disagree with this. 36% of the respondents having no comment based on effective training after appraisal review and the low level 2% were strongly disagree. 46% of the respondents are agree with the personal growth of the individuals and the low level 4% were disagree. 54% of the respondents are agree with the promotional aspects through appraisal and the low level 6% were disagree. 80% of the respondents are recommended for job rotation. 90% of the respondents are recommended for job enlargement. 20% of the respondents recommended some ideas for their development. 70% of the respondents are agreeing with the face to face interaction with the supervisor. 86% of the respondents are agreeing with opportunities to improve their performance after appraisal. 70% of the respondents are agreeing with the changes in attitude/behaviour after appraisal.

• •

80% of the respondents are satisfied with CFR ( critical factor ratings ) 78% of the respondents are agreeing with increase in their salary through CFR ratings.

• •

76% of the respondents are happy with the present appraisal system. The chi-square analysis show that the comparison between the age of the respondents and types of appraisal level calculated value of x2.

5.2 SUGGESTIONS 5.2.1 SUGGESTIONS BY THE EMPLOYEES The organization should conduct the following programmes for their development which are • • 3 Modelling software

Seminars in some of the functional areas like Technical aspects Business overview Latest technology

5.2.2 SUGGESTIONS BY THE RESEARCHER • The company should conduct effective training after the performance appraisal for their employees to improve their performance and also CFR ratings should be discussed with the employees at the time of performance appraisal review. • The company should give combination of both (subjective and objective) appraisal and it should be of half yearly. • The appraiser should keep on contact with the employees and motivate them for their growth and also to achieve the organizational goals.

When an employee is newly joined in an organisation, he/she should be given proper information about performance appraisal system and its impact towards his/her job.

Once an employee is evaluated, he/she has to be informed about their strength and weaknesses. An employee should aware of the above, he/she will improve their strengths and weaknesses and also it helps to increase the productivity of the organisation.

5.3 CONCLUSION In this study, Performance Appraisal System followed at SPAN systems was evaluated and found to be good. This project work also reveals the gaps in the existing system. By providing suitable training and development programmes, the concern organisation can improve the existing performance appraisal system. Overall, this project work helps to understand every aspects of performance appraisal system.

REFERENCES
• VSP Rao – Human Resource Management, Anurag Jain for excel books, 2005 ninth edition. • R. Kothari - Research Methodology Methods and Techniques, New age international publishing, second edition. • Donald R Cooper, Pamela S Schindler – Business Research Methods, Tata MC Graw Hill, ninth edition. • • Performance management – Michael Armstrong and Angela Baron.

Gary Dessler – Human Resource Management Prentice, Half of Indian private limited 2004 ninth edition.

• •

Website : www.spansystems.com

Website : www.google.com

APPENDIX
IMPACT OF PERFORMANCE APPRAISAL SYSTEM 1. Name (optional) : ___________________ 2. Sex 3. Your age group? a) 19 - 23 b) 24 - 28 c) 29 - 33 d) 34 – 38 e) above 38 4. Designation 5. Date of joining : ___________________ : ___________________ : a) Male b) Female

6. Whose appraisal do you prefer? a) Peers b) Subordinates c) Superiors 7. Performance appraisal should be based on your a) Quality b) Target c) Both 8. The frequency of appraisal should be a) Monthly

b) Half yearly c) Annual d) 360 degree

9. Appraiser appraised your performance based on a) Personality traits b) Behavior c) Results d) All the above 10. Which type of performance appraisal do you prefer? a) Subjective performance appraisal b) Objective performance appraisal c) Combination of both 11. Based on the gender, performance appraisal varies. Yes/No

The following questions are graded on a 5 point scale: 1 – Strongly agree 2 – Agree 3 – No comment 4 – Disagree 5 – Strongly disagree

1 12. During appraisal, the appraiser had daily contact with you.

2

3

4

5

13. During appraisal process, you are allowed to give feedback.

14. Do you think the performance appraisal evaluates your strengths and weaknesses? 15. The appraiser exactly evaluated the skill gaps within you.

16. The organization is providing effective training program for skill enhancement after your appraisal period.

17. Performance appraisal helps in your personal growth.

18. The appraisal system helps in your future promotion prospects.

19. Do you recommend job rotation for your development?

Yes/No

20. Do you recommend job enlargement for your development?

Yes/No

21. Do you have any ideas to recommend for your development?

Yes/No

If yes, Please specify___________________________.

22. At the time of appraisal documentation review, did you have face to face interaction with your appraiser?

Yes/No

23. Were opportunities given to you to improve your performance?

Yes/No

24. Does the performance appraisal review actually change your attitude / behaviour?

Yes/No

25. Are you satisfied with the critical factor ratings?

Yes/No

26. Based on the performance ratings, is there any increase in the salary? Yes/No

27. Are you happy with the present appraisal system?

Yes/No

28. Do you have any comments on existing performance appraisal in your Enterprise. Specify your suggestions.

This survey is only for educational purpose. Strict confidentiality will be maintained and no details will ever be revealed to others.

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