INTRODUCTION

Performance management can be defined as a strategic and integrated approach to delivering sustained success to organizations by improving the performance of the human capital and by developing the capabilities of teams and individuals within that organization (Armstrong and Baron, 2000) !he process of performance management therefore focuses not only with "#$A!% is produced but, also "$&#% it is produced 't see(s to ensure that what has been produced is in line with the organization%s needs and these products have been produced in line with the organization%s way of doing things Performance management can be achieved through many different ways !hese include performance appraisal system and coaching Performance appraisal system can be described as a fairly old system of measuring employees% performance that has been in use in many organizations $owever, Performance appraisal has not brought in the amount of positive results that was e)pected of it Armstrong and *ulis (+,,-./0) 1uoted one manager describing performance appraisal as 2a dishonest annual ritual3 !he 1uestion that arises then is. 2'f *anagers (the custodians of the system) do not have confidence in their own system, what more employees (who happen to be victims of the system)43 !he meaning of the word 2appraisal3 is 2to fi) a price or value for something3 !his is used in finance in terms such as pro5ect appraisal or financial appraisal where a value is attached to a pro5ect 6imilarly performance appraisal is a process in which one values the employee contribution and worth to the organization

Performance appraisal can be defined as a system of measuring employee%s performance relative to the assigned or agreed ob5ectives !he process starts with the supervisor and or with the subordinate agreeing on specific ob5ectives that need to be met on an agreed time period !he ob5ectives that are used in the Performance appraisal stem from the main organizational ob5ectives that are reduced to 7epartmental goals and now to individual goals !he performance appraisal system has to be transparent and the employee should be ta(en into full confidence 'n many cases employees themselves are given a chance to conduct a self8appraisal Performance appraisal is a case of 5oint problem solving by the organization and the employee $owever the organization must also ta(e care of future potential and not get bogged down by current performance 9ormally the immediate supervisor does the appraisal 6ome organizations also have a peer group performance appraisal where colleagues rate the performance !he $: person must also ensure that line managers are properly trained for carrying out the appraisal including interviewing techni1ues and on how to give feedbac( !he managers must also be trained to loo( at the cases ob5ectively outside of their personal opinion of the candidate

COMPANY PROFILE
;indal Brothers Pvt <td specializes in 7esign, =ngineering, >abrication and =rection of Pre8=ngineered *etal Building 6ystems !he ?roup is well (nown in the *iddle =ast @ 'ndia for the 1uality of the products and services offered 'n +,,/, ;indal Brothers Pvt <td started its 5ourney in 'ndia by setting up 6tate of Art manufacturing facility at *anesar, ?urgaon 7esign and 7etailing wor( is carried out by highly s(illed =ngineers with computed aided design and drafting facilities at the Aompany%s $ead &ffice at 9ew 7elhi !heir ob5ective is to deliver cost effective, 1uality Pre8 =ngineered *etal Buildings within agreed time schedules to their Austomers ;indal Brothers Pvt <td maintains high degree of professionalism at all levels, a commitment needed to maintain highest possible standards =very pro5ect is e)ecuted with *icro Planning, to achieve the *ilestones set out in the contract !his combined with 1uality of their products has earned us reputation in the *ar(et Place Aorporate giants, both 9ational and *ultinational, have complimented their strategy of providing single point responsibility for 6upply and =rection with highly motivated and trained 'n $ouse Pro5ect *anagement !eam to handle pro5ects, whether it is small or big, simple or comple) *ore than B00 Pre8=ngineered Buildings have been installed across the length and breadth of their Aountry !his e)perience corroborates their claim :egional C Area offices across the Aountry are fully e1uipped to provide pre8order and post order service to their valued Austomers &rganizational effectiveness depends upon the level of performance of its employees $ence the level of performance has to be ensured Periodic stoc( ta(ing of the 1ualitative state of the man power is of vital importance to an organization and the organization tries to collect the relevant data through the tool of performance appraisal reports !hus performance appraisal is essential for performance effectiveness and efficiency of the organization and also for carrying out administrative decisions regarding human resources !he correctness of the decision will depend heavily upon the validity of the data gathered through appraisal system !he ;'97A< B:&!$=:6 is a relatively an older organization and has been restructuring its $uman :esources 6ystems and Policies in alignment with the current business environment ' have therefore ta(en up this pro5ect with an aim to study the

e)isting system of performance appraisal so that this might help other organizations to follow the same Services Pre8=ngineered steel buildings are designed and fabricated to client%s re1uirements in accordance with the Eniversal standards A pre8engineered steel building consists of four ma5or groups of components namely primary members, secondary members, metal roofingCwall cladding and connection fasteners !hese components are designed that they are compatible with each other !he fabrication of these components is carried out in factory under strict 1uality control as per detailed shop drawing !hese components are transported to site with proper mar(ings and assembled at site as per erection drawings Knowledge H ! " #r$in %$re !hey call this the knowledge Hub, a world class 7esign @ =ngineering &ffice manned with team of e)perienced professionals and e1uipped with latest sophisticated design tools which distinguishes ;indal Brothers Pvt <td from others 6tadd Pro, *B6, AE!&AA7, Primavera, *6 Pro5ects are among the few =ngineering @ e)ecution tools in use at ;indal Brothers Pvt <td that delivers the fastest solution at the best of engineering practices applied in a true international design environment !he Brain $ouse offers intelligent engineering solutions and supports post order functions with general arrangement, fabrication and erection drawings simplify manufacturing process and erection methods !he ;indal Brothers Pvt <td (nowledge archives has vanity of standards and design codes such as A'6A, A'6', *B*A, A#6, EBA, A6A=, 'BA, '6 and many others to suit customer%s need of a Pre8=ngineered building at any place or country !he computerized drafting, detailing and logic programs enable user friendly details to

!he ;indal Brothers Pvt <td &s consistent efforts in research @ development and global sourcing of material have positioned the &rganization as a lead runner in introducing innovative ideas and products in the mar(et place M$n '$c( ring F$cili()* !heir 6tate8of8the8art manufacturing facility is located at *anesar 't houses special e1uipments to produce 1uality pre8engineered buildings such as. Automatic Beam #elding <ine

Plate 6hearing <ine

:adial 7rilling *achine

Aold :oll >orming <ine

$ydraulic Press Brea( <ine

Automatic 6hot Blasting <ine

!he welding process is as per American #elding 6ociety 6tandards (A#6) All welders are 1ualified to re1uired standards #ell defined process on the shop floor ensures smooth flow of material and productivity All structural components to complete Pre8engineered building are produced in8house and go through stringent 1uality chec(s prior to dispatch All ma5or raw materials and bought out items are sourced from a Panel of approved supplier to ensure 1uality and timely supplies

Automatic #elding *achine

Purlin :oll >orming *achine

:oofing Profile <ine

+INDAL #ROTHERS Indi$ Pro,ec(s***

Loc$(ion #ashim

Clien( '!A ?rain ?odown Aafeteria 7ept 6tore

Bawal

FGG (6*AA Aonstruction)

;agdishpur

'!A ?rain ?odown Aafeteria

Hatva , Ahmedabad

*'7A& Aontainers Pvt <td

7elhi Pune *andsour

?ie) >oods 6 * Auto =ng '!A ?rain ?odown Aafeteria 7ept 6tore

Amaravati

'!A 7ept 6tore

O#+ECTI-ES OF THE STUDY

+ !o study the D00 7egree Appraisal systems and evaluate its benefits in conte)t of ;indal Brothers 2 !o study the effectiveness of the e)isting system of performance appraisal system at ;indal Brothers D &n the basis of what company increase salary and provide employees And what is basis of promotion in company !o understand more and more about his role and become clear about his functions B !o understand his own strengths and wea(nesses with respect to his role and functions of the company 0 I !o increase mutuality between employee and his superiors Provides an opportunity to the employees for self reflection and individual goal setting training to its

RESEARCH METHODOLO.Y
'n order to accomplish the ob5ectives of the study, it is essential to articulate the manner in which it is to be conducted, i e , the research process is to be carried8out in a certain framewor( !he research methodology, which follows, is the bac(bone of the study D$($ Collec(ion So rces :esearch wor( was done from two sources. 8 (+) Primary data (2) 6econdary data Primary data was collected by 1uestionnaire and interview in the organizations !he 1uestionnaire comprised of closed and attitude 1uestions !he opinion on e)isting Performance Appraisal practices and their affectivity were collected through 1uestionnaire which was circulated to all the employees at all levels and the results have been analysed on the basis of agree and disagree !he methodology for collection of data also included interviews and discussion with the top management of the organization 6econdary data. 't was collected by reviewing different literatures, from published boo(s, management 5ournals, articles published by the other researchers on D00 7egree Appraisal

S$/0ling* !he total sample size for this pro5ect was +00 employees at ;indal Brothers !he information collected through above methods has been tabulated, analysed and interpreted >inally an overall assessment of the contribution of top management, supervisory staff has been made towards improving the effectiveness of the organization

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TYPES OF RESEARCH
:esearch methodology is a way to systematic solve the :esearch Problem 't is a procedure, which is followed step by step to solve a particular research problem T1ere $re !$sic$ll) 'o r ()0es o' rese$rc1es* + 2 D =JP<&:A!'H= :=6=A:A$ 7=6A:'P!'H= :=6=A:A$ 7'A?9&6!'A :=6=A:A$ $FP&!$=6'6 !=6!'9? :=6=A:A$

E20lor$(ive Rese$rc1* !o gain familiarity with phenomenon or to achieve an insight into it Descri0(ive Rese$rc1* !o poetry accurately the characteristics of the particular individual situation or a group Di$gnos(ic Rese$rc1* !o determine the fre1uency with which something occurs or with which it is associated with something else H)0o(1esis Tes(ing Rese$rc1* !o test a hypothesis of casual relationship between variables !he present pro5ect is Descri0(ive c / E20lor$(ive in nature 't is done to poetry

accurately the characteristics of a particular individual situation or a group !he ma5or purpose of the descriptive research is the description of the state of the affairs as it e)its at resent !he main characteristics of this method are that the researcher has no control over the variablesK he can only report what has happened or what is happening

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LITERATURE RE-IE%
&rganizations e)ist to achieve goals ?oals are only met when individual employees efforts matches with policy of the organization and thus bringing out success and effectiveness !he assessment of how successful employees have been at meeting their individual goals therefore becomes a critical part of $:* and here comes Performance Appraisal 6ystem Performance appraisal is an important component of the information and control system 'n today%s fle)ible organizations, performance evaluation provides an important way for managers to clarify performance goals and standards and to enhance future individual performance !hus the purpose of performance appraisal is to improve the organization%s performance through the enhanced performance of individuals !he performance appraisal system. 's an organizational necessity 's based on well defined ob5ective criteria 's based on careful 5ob analysis Eses only 5ob related criteria 's supported by ade1uate studies 's applied by trained 1ualified raters 's applied ob5ectively throughout the organization Aan be shown non discriminatory as defined by law

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O#+ECTI-ES OF PERFORMANCE APPRAISAL

!here are mainly two purposes for which performance appraisal is used by an organization. (+) !o improve the wor( performance of employees by helping them realize and use their full potential in carrying out the firm%s missionsK and (2) !o provide information to employees for use in ma(ing wor( related decisions, *ore specifically, appraisals serve the following purposes +) Appraisals generate information to support administrative decisions Promotions transfers and reassignments, demotions and termination%s are action based at least in part on performance 2) Appraisals provide feedbac( to employees and thereby serve as vehicle for personal or career development because feedbac( provides. :eassurance that they are contributing and doing the right thing Awareness of the impact on the desired results A measure of the ade1uacy of performance (1uality, 1uantity, speed etc ) :ecognition of the importance and value of their performance

D) &nce the development needs of employees are identified appraisals can help establish ob5ectives for training programmes !hus evaluations provide a basis for changing performance plans, including ob5ectives and standards of behaviors as business plans and conditions change -) As a result of proper specifications of performance levels, appraisals can help diagnose organizational problems !hey do so by identifying training needs and the (nowledge, abilities, and other characteristics to consider in hiring, and they also provide a basis for distinguishing between, effective and ineffective performers B) Appraisals are used as criteria in test evaluations !he rationale for differential treatment of employees needs to be consistent with company%s values, philosophy and strategy 't also needs to be balanced with the desire for collaboration, rather than competition and conflict, sought in !L* +D

NE% O#+ECTI-ES OF PERFORMANCE APPRAISAL

Performance appraisal system can serve the following purposes if designed properly $elp each employee to understand more and more about his role and become clear about his functions $elps each employee to understand his own strengths and wea(nesses with respect to his role and functions of the company $elps identifying the developmental needs of employees $elps increase mutuality between employee and his superiors Provides an opportunity to the employees for self reflection and individual goal setting $elps in preparing employees for performing at high levels by continuously enforcing the re1uired 1ualities Areates a healthy environment in the organization

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E-OLUTION OF PERFORMANCE APPRAISALS IN INDIA

First Phase of Performance appraisals began in the early si)ties were prepared in the form of Annual Aonfidential :eports (AA:0, also (nown as =mployee 6ervice :ecords (=6:) in some organizations 9egative remar(s in the AA! or =6: were considered damaging for career growth 't was thus important to (eep the boss in good humor so that the AA: or =6: did not get spoiled !he =6: was largely trait based and the traits used were sincerity, punctuality, dynamism, 5ob8(nowledge, loyalty, initiative, leadership etc !he AA: and it was this strict confidentiality that was supposed to serve as the motivating force for them !his may be considered as Phase + of the performance appraisal systems in 'ndia 'n the Second Phase that spanned late si)ties and early seventies, the main change was in communication of adverse remar(s to the employees 't was felt that unless this system of communicating to the employees in writing any 1uality or trait on which they got a rating of DD per cent or less =ven though the communication was sent to the employer by the personnel department or the establishment section in a routine manner, the employees too( it very seriously because it re1uired office played a (ey role in moderating the assessment, and he normally had all the powers to overrule the ratings of the reporting officer of the employee 'n the Third Phase of appraisals, the employee was given a scope to state his own accomplishments in the confidential report form !he term annual confidential report was replaced during this period by Performance Appraisal !he appraisal process began at the end of the year with a statement by the appraise about his significant accomplishments during that year 6ome organizations later turned this 2opportunity given to the appraisee to e)press his significant achievements as self8appraisal3 $owever, this term was a misnomer as there was no scope for the appraisee to appraise himself A few organizations subse1uently developed this part of the appraisal by adding other 1uestions about difficulties faced, plans for improvement ne)t year etc =verything else remained the same !he formats became a little more elaborate and in few cases, the appraisal included the details of the actual wor( done, largest achieved etc !he confidentiality, however, was maintained as before 'n most cases, there was no communication to the appraisee about the performance assessment 'n a few of them, a column of training needs was introduced !he appraisals continued to be control oriented and not developmental +B

't was really in the he Fourth Phase that the system of performance appraisals underwent a 1uantum leap !his phase began in the mid8seventies and in a way was initiated in 'ndia by <arsen @ !urbo <imited, followed by the 6tate Ban( of 'ndia , Bharat =arth *overs and few other organizations !his phase witnessed a shift from control to development, appraisal to analysis, strong lin(s to training, confidentiality to openness and traits to 1uantifiable tas(s and targets !he movement towards open and development oriented appraisal systems was initiated by <@! when it adopted a system ma(ing appraisal more performance based, participative (dialogic and interactive), open and developmental 't re1uired the employee and his reporting officer to plan the performance (the term (ey performance areas or GPAs was introduced) or the appraisee in the beginning of the year, review it after si) months with the boss, analyze the factors affecting performance, discuss developmental needs, have performance counseling and share the ratings with the appraisee !he system re1uired active participation of the appraisee and was intended to be a performance planning, performance reviewing And performance developing system 'n the late seventies and early eighties, most organizations wee fascinated by this open and development oriented system 6ome of them even started new $:7 departments by appointing $:7 managers having the s(ills to design, monitor and implement the system #hile a few organizations switched over to this system, it too( about +0 years of e)perience to fully understand its intricacies and dynamics !he change process was slow largely because the employees were not used to the openness introduced by the new system, the $:7 managers did not have enough s(ill base to monitor it, and the top management lac(ed patience and perspective about its potential advantages 6everal organizations could not get out of the mindset created by earlier confidential report system !hey continued to use it for promotions, which were considered as the most important indicators of development 't is only by the mid eighties that organizations started setting down and feeling comfortable with the open appraisal systems Phase Fifth has started only in last three years with organizations showing some maturity and growth in terms of their understanding of appraisals !his phase is characterized by a movement towards development in spirit and form !his is symbolized by the substitution of the term performance appraisal by performance review system, performance development system, performance analysis and

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development to rewards and from comparative assessment to assessment in relation to plans !here is a movement from rewards and controls to culture building and development and the new phase also indicates a shift towards appraisal by multiple sources rather than by only the reporting officer

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PERFORMANCE APPRAISAL 3 PROCESS MAP

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TRENDS IN PERFORMANCE APPRAISAL SYSTEM

Performance appraisal in its traditional from (nown as AA:8Annual Aonfidential :eport is often misused than used Performance appraisal has now been recognized as a $:7 function 'n the last decade many organizations have reviewed and changed their managerial appraisal systems +) !here is a trend away from the composite appraisals with multiple ob5ectives (e g performance planning, development rewards and promotions)to separate systems for different systems for different clusters of ob5ectives 2) D) -) B) !here is a move away from isolated appraisal system to the business lin(ed one !here is shift away from closed confidential type to open dialogue and discussions based system !here is a movement 1uantitative (pseudo ob5ective) to 1ualitative (interactive, improvement and process oriented) system !here is a movement away from boss assessed feedbac( to D008degrees feedbac( involving customers, peers, team members, subordinates etc in addition to supervisors 0) I) /) ,) !here is also a trend away from elaborate systems to simple ones !here is a shift from standard systems to fle)ible and group specific ones !here is a movement from result oriented systems to process oriented system !here is a movement from the assessment of individual performance to the development of team performance +0) !here is also a movement from complacency to e)perimentation through continuous research change Performance appraisal refers to the assessment of an employee%s actual performance, behavior on 5obs, and his or her potential for future performance Appraisal has several ob5ectives but the main purposes are to assess training needs, to effect promotions, and to give pay increases Appraisal of performance proceeds in a set pattern !he steps involved are Mdefining appraisal ob5ectives, establishing 5ob e)pectations, designing the appraisal

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programme, conducting performance interview, and using appraisal data for different $: activities !wo important contemporary techni1ues of performance appraisal include D00N appraisal and goal setting approach to appraisal also (nown as "*anaging by &b5ectives% Aurrently most of the companies are using one of the following Performance Appraisal *ethods. +) D00 7egree Appraisal *ethod 2) :ating 6cale *ethod D) *anagement by &b5ective *ethod Ender the D00 7egree appraisal method the employee is rated from all angles i e , by the superiors, subordinates, peers, suppliers, distributors, customers and clients Ender the *anagement by &b5ective method the employee goals are set mutually by the employeeOs and the management And the employees are rated based on the accomplishment of these goals Ender the :ating 6cale method each employee trait or characteristic is rated on a scale that usually has several points ranging from PpoorP to Pe)cellentP (or some similar arrangement) !he traits assessed on these scales include employee attributes such as wor( 1uality, cooperation, initiative, punctuality and technical competence, etc !he selected traits should be in some way relevant to the appraiseeOs 5ob 4567 APPRAISAL AND FEED#ACK !he D00 degree appraisal involves rating of an employee or manager by everyone above, alongside and below him Aorporate li(e ?eneral =lectric 'ndia (?=), :eliance 'ndustries <td (:'<), Arompton ?reaves, ?odre5 6oaps, #ipro, 'nfosys, !herma) and !homas Aoo( are all using this tool to find out truths about their managers

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Although deployed mostly as a fact8finding techni1ue, D00 N appraisals are also used to design promotion and reward system in the organization Conce0( o' 4567 A00r$is$l According to *illiman and others, 2D008degree appraisal is the process of systematically gathering data on a person%s s(ills, abilities and behaviors from a variety of sources Mthe manager, peers, subordinates and even customers and clients3 !hus, appraisal of an employee is done by his superior, his peers, his subordinates and clients or outsiders with whom he interacts in the course of his 5ob performance 'n D008degree appraisal, besides appraising the performance of the assesses, his other attributes such as talents, behavior, values, and technical capabilities are also appraised Besides the employee himself, superior, subordinates and peers play an important role in the appraisal 6tructured 1uestionnaires are used to collect responses about the employee from his superiors, peers and subordinates 6everal parameters relating to performance and behavior are used in the 1uestionnaires =ach manager is assessed by a minimum of fifteen colleagues, at least two of them being his bosses, four of them peer, and si) of them subordinates =ven the important customers or clients of the firm may also be re1uested to give their assessment of the concerned employee !he responses are presented collectively to the assesses in the form of charts and graphs Aomments and interpretations are presented later Aounseling sessions are arranged with the employee to remove the wea(nesses identified in the D00 degree assessment Meri(s o' 4567 A00r$is$l !he merits of D00N appraisal are as under. (i) !he D00 degree appraisal leads to greater self8awareness of those appraised 't reveals strengths and wea(nesses in their wor(ing styles

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(ii)

!he gap between self assessment and the views of one%s colleagues of peer group in reduced

(iii)

't facilitates empowerment of subordinates who get a say in the appraisal of their bosses

(iv) (v)

'nfle)ible managers are forced to initiate self8change >acts about organizational culture and ambience are brought to light by the multiple appraisals

Li/i($(ions o' 4567 A00r$is$l !he system of D00N appraisal suffers from the following limitations. (i) (ii) !he D00 degree appraisal system ignores performance in terms of goals !he candidate being appraised may not accept negative feedbac( from the subordinates and peers $e might feel humiliated (iii) (iv) (v) :esponses from colleagues often tend to be biased <in(ing rewards to findings under D00 degree appraisal can prove to be unfair !he subordinates and peers might not be fully competent in appraisal

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. idelines 'or #e((er Use o' 4567 A00r$is$l !he use of multisource appraisal can be effective if the following guidelines are followed. (i) 'nvolve people As( them who should serve as raters, and give them an opportunity to review and interpret the results !his will strengthen their commitment to both the overall process and the specific decisions (ii) =nsure that relevant data are being collected >ocus on behaviors and outcomes that raters are capable of observing and are competent to evaluate (iii) =nsure that no single rater can dramatically affect the outcome Ese a large enough sample or eliminate the highest and lowest scores to ensure that no one rater can s(ew the data (iv) !rain raters in what and how to observe !he better people understand what they loo( for and how to record3critical incidents3 (specific things the person said and did that can be used as e)amples to support their ratings, and better the 1uality of the information that will be collected (v) As( raters to support their evaluations #henever possible, raters should discuss their observations and evaluations with other raters !hese discussions should trigger thoughts and combat selective memory :aters should also be re1uired to provide a rationale for their rating to other raters !his would prevent people from using the process to act on personal grudges (vi) *ove slowly and start small Any organization considering using D00 N feedbac(s in the appraisal process should begin by using it for development purpose only and then gradually to ma(e it a part of appraisal system =ven then, the focus should be on the goal8setting portion of the appraisal People need to get comfortable with the idea of multisource feedbac( as a

2D

development tool before they can accept it as part of the formal performance management process A lot of organizations seem to be hurrying to integrate D00N feedbac( into the human resource management system *ultisource feedbac( really does have the potential to enhance human resource management system $owever, D00N feedbac( won%t fi) a system that does not wor( (vii) 7evelop a culture that supports open feedbac( 9ot surprisingly, D00N feedbac( wor(s best in companies where the environment is participatory rather than authoritarian, where giving and receiving feedbac( are the norm and are seen as valuable sources of information 'f the current system (where only the supervisor does the appraisal) is not wor(ing due to lac( of straight tal( and hesitancy to give direct feedbac(, it is essential to introduce openness in the organization (viii) Alear and agreed on performance measures and behaviors #hen D00N feedbac( is used for development only, the organization may be able to settle the list of behaviors and s(ills that have reasonable face validity and general support. 2coaching3 or 2team building3, for instance $owever, when the feedbac( is being used to determine performance ratings, the result and behavior for which people are held accountable must be clear, unambiguous and specific (i)) !he users must support the system and be willing to invest the time re1uired to ma(e it wor( !he introduction of D00N feedbac( ma(es an already time8 intensive appraisal process even more demanding 't means more data to collect and more information to process for the additional feedbac(

2-

())

6ound feedbac( process #hile the way the data are collected and presented are always important, two aspects of sound D00N feedbac( procedure are particularly relevant when the data are used for appraisal purpose. the validity and reliability of the practices for which people will be measured and the confidentiality of the raters

Ele/en(s o' 4567 A00r$is$l Progr$/ !he elements of D00N appraisal program are as follows. (i) Appraisal by 6uperiorC Boss !his is the most important element of the D00 degree appraisal $ere the focus is to provide constructive feedbac( on employee%s performance and his development needs 't is the responsibility of the superior to ensure that employee sets goals not only in the area of business performance but also in the areas that are vital to the organization !hese are called corporate thrust areas and may include relationship management, safety and 1uality development 'f the wor(ing style of the employee is a concern area and needs improvement for enhancing effectiveness then goal may be set for 2style of functioning3 such as, from short8term to long8term orientation 't is e)pected of the superior to put career aspirations of the employee in proper perspective >irstly, superior must communicate to the employee in a clear way what the organization plans for the employee 6econdly, if the employee has unrealistic aspirations, then also it is superior%s responsibility to share with the employee the realistic picture given hisC her strengths, development areas, e)perience, 1ualifications, and the organization%s ability to provide growth !his is how the superior%s appraisal has a very significant role to play (ii) Appraisal by the Peer ?roup !he peers play an important role in the life of an employee in the organization !he can also provide a deep insight into the

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personality ma(e up, attitude and style of wor(ing of the employee >or better results, it is essential to select the right peers for the purpose of appraisal !hey must include peers both from within the department as well as from the other departments, which are directly connected with the wor(ing of employee%s department !he concept of internal customers comes handy here !hree to five internal customers should normally be chosen for peer appraisal 'n order to achieve the purpose of D00N appraisal, the peer group appraisal must strive to get the feedbac( on (a) employee%s wor(ing style, (b) sensitivity towards others, (c) spirit of co8operation and collaboration, and (d) ability to wor( as a team member (iii) Appraisal by the 6ubordinates Another distinctive feature of D00N appraisal is the role of subordinates in appraisal 't signifies two things >irstly, it is a clear e)pression from the organization that it encourages openness and that feedbac( is a two8way process 6econdly, it is a systemic recognition of the fact that an employee%s subordinates do play a vital role in his appraisal !hus, the purpose of subordinate%s appraisal is to get first hand assessment of how the subordinates perceive their superior to be in terms of. (a) delegation of authority, (b) guiding and training of subordinate, (c) motivation of subordinates, (d) team building, etc Epward appraisal provides an opportunity to the subordinates to give feedbac( to their superior on the (ind of things they would li(e himC her to continue doing (status 1uo), things they would li(e himC her to stop doing (areas for corrective action), things they would li(e himC her to start doing (areas for new initiatives) (iv) 6elf Appraisal Any program of D00N appraisal would not be complete without self appraisal by the employee whose performance is being appraised 6elf

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appraisal facilitates the employee to identify hisC her strengths and wea(nesses and provides an opportunity to assess the performance 'n a well established system, employees use the self appraisal very effectively and organizations also find that employees often are their own strongest critics and display very high degree of ob5ectivity 6elf appraisal also provides an opportunity to the employee to e)press his career moves for the future $owever, this is only for gathering information and that under the given organizational constraints, it may not be possible to provide the career progression desired by the employee 9evertheless, it is in the organization%s interest to at least (now on a first hand basis the aspirations of its employees

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FINDIN.S AND ANALYSIS

Org$ni8$(ion S(r c( re $nd Design +8 ;indal Brothers is a young, dynamic organization and is going strong on the stoc( mar(et 28 !he company is well aware of the dynamic environment of software, it is operating and in order to (eep it with the pace of the environment it believes in constant up gradation of courses &rganization structure and design of the company is such that it supports this change D8 ;indal Brothers has a matri) (ind of a structure wherein it ta(es the form of combination of structures *atri) structures are adopted became there is more than one factor around which the structure can be built -8 !his matri) structure at ;indal Brothers improves the 1uality of decision8 ma(ing where interest conflicts arise and direct contacts replaces bureaucracy B8 !his increases the motivation of the managers and development of wider involvement in strategies Although at times the company faces high ris( of dilution of priorities became e people do not (now who is responsible for what 08 An organization is a networ( of authority, responsibility and relationships 7ifferent organization structure consists of different type of relationships

Line Org$ni8$(ion

2/

't is the traditional type of organization 't refers to a direct chain of command from top to bottom 'n the line organization the lines of direction are straight and vertical Authority and responsibility flow vertically in an unbro(en straight line from one level to another =very superior has complete command over his subordinate and every subordinate has to report his wor( to only the senior or to the level above his own level S($'' Org$ni8$(ion 6taff may be of three types. Person$l S($''* 't consists of personal assistants attached to individual line e)ecutives Personal staff is employed to carry out those responsibilities of an e)ecutive, which he cannot or does not want to delegate to others S0eci$li8ed S($''* 't consists of specialists in different functional areas e g personnel, accounting, legal and public relations etc A specialized staff department serves as a fountainhead of e)pertise for the entire concern .ener$l S($''* 't includes a group of e)perts attached to the central office and it provides general advice mostly to the top management Co/0l$in( H$ndling As part of the process for capturing customer complaints and acting on them, ;indal Brothers has procedures that ensure that each customer complaint is captured, recorded and reported as part of a formal review system !he process includes related activities such as escalation of a problem, trac(ing each complaint to closure, and 2,

creating new procedures (or modifying e)isting ones) to prevent similar problems from repeating in the future E/0lo)ee E2cellence At ;indal Brothers they believe that they can build a world class structures !heir vision document, which drives each employee as well as the organization itself, reflects ;indal BrotherOs commitment towards customers and employees 6tarting from the recruitment process and culminating in annual reviews, ;indal Brothers has 1uality processes for trac(ing and maintaining 1uality standards Recr i(/en( >or recruitment, ;indal Brothers administers various tests to the applicant !hese include aptitude tests, 'L tests, management tests, and personality tests =ach of the tests captures different information about the individual so that ;indal Brothers can ensure that the person is appropriate for the 5ob and will fit into the company culture .o$l Se((ing Before starting on the 5ob, employees discuss their role and responsibilities with their supervisors !his results in the setting of goals and ob5ectives for each individual for the coming year !his process clarifies the e)pectations from each individual during the year =ach employee is e)pected to monitor hisCher goals by filling in a focus report every month, which is then discussed with the supervisor Tr$ining ;indal Brothers recognizes the fact that the s(ills of employees need to be upgraded constantly ;indal Brothers trains each and every employee continually through the year 'n fact, ;indal Brothers has one of the highest training days per employee in the world. each ;indal Brothers employee receives over ++ days of training each year ;indal Brothers has an employee training division which conducts in8home e, residential training programs e)clusively for ;indal Brothers employees

D0

PERFORMANCE APPRAISAL AT +INDAL #ROTHERS

#hile on the 5ob, performance reviews of every employee are done every 1uarter !he reviews are done with a view to helping the individual e)cel at hisCher wor(place 'n case there are any training re1uirements, these are noted and acted upon in the coming 1uarter Also, the goals and ob5ectives for the employee are re8visited for !he performance appraisal mechanism is carried out at ;indal Brothers for promotional purposes !hese are done so as to motivate the employee and improve his performance level !he method is as follows. a) =stablishment of performance standards with the employees b) !he goals are set mutually as per measurable standards

D+

c) !he actual performance is hence measured d) After measuring of the actual performance, the same is compared with the standards set e) !he appraisal is then discussed with the employees f) And finally, if need arises corrective action is initiated >or this purpose the corrective action is actually identified through brainstorming e)ercises initiated by the departmental heads at all the ;indal Brothers 't is then measured as a tool to evaluate the past performances of the employees

D2

6ome of the methods used at ;indal Brothers are. + 2 D Gey Performance 'nde) D00 7egree >eedbac( Paired Aomparisons Behaviorally Anchored :ating 6cale

9: KPI3Ke) Per'or/$nce Inde2 't is based on the performance level of the employee generally classified on the basis of. !argets achieved :atings through students% feedbac( forms Punctuality and regularity 7ay to day performance

!his is given after every module at the centers !hus we can observe that the appraisal system is not a biased one but based on performance and productivity basis All the respective heads of the employee together with the senior persons at the center brainstorm and then give the promotion ;: 456 Degree Feed!$c< !his feedbac( system involves the participation of. Aowor(ers 6ubordinates 6uperior M -0Q 8 20Q 8 -0Q DD

!hus the feedbac( given by these members at ;indal Brothers is considered under a holistic view and then the employee is given a performance appraisal !his evaluation method involves -0Q feedbac( from the cowor(ers which says that the employee should not only maintain good rapport with the senior or 5unior but ma5orly with the cowor(ers also 4: P$ired Co/0$risons !he evaluator compares all possible pairs of subordinates on their overall ability to do the 5ob 7ue to the sub5ectivity of evaluating overall performance some managers me e a number of different 5ob related dimensions when comparing =: #e1$vior$ll) Anc1ored R$(ing Sc$le >#ARS? 't is a sophisticated method of evaluating the employee based on the employee behavior 't is a numerical scale that is anchored by the seniors of the organization at various centers !his is highly confidential and the information is sent in sealed envelopes and opened only at the time of the final evaluation !here is no further discussion regarding this scaling, thus it is not given enough weightage

D-

SUR-EY FINDIN.S
'n this section, basic data for a group of +00 employees from lower, middle, senior and top managers is presented on various attributes of performance appraisal >re1uency and fre1uency percent scores were computed for each of the groups of the entire selected variable 9: Finding (1ro g1 (1e @ es(ionn$ire !hrough the 1uestionnaire it was found that promotions were and (nown to most of the top and senior management while middle and lower management were a bit not clear about it !his could be attributed to the fact that senior and top management were more involved in decision ma(ing and policy formulation than are the middle and lower management 6ame reason could be attributed to the fact that code + managers were absolutely clear of what was e)pected out of them every year, whereas B0Q senior management ware clear or partly clear about the same and the about 20Q of middle management were not clear about it and still further, the I+Q of lower management was not aware of what was e)pected out of them every year /BQ of code - employees said that they could e)press their reason of failure !he responses of B0Q of *iddle *anagers were bit favorable whereas +00Q senior management also thought that they did not get the opportunity to e)press their cause of failure !he 00Q of top management were portly able to e)press their cause of failure !his may be because the appraisal system is more of less performance based and human factor is by and large overloo( #hereas, at the lower levels of the organization, performance can be 1uantified, and the managers are made accountable at the higher echelons the tas(s are too comple) and therefore cannot be assessed on the basis of 1uantified performance and therefore the top and senior management

DB

believed that the promotions are also for motivation whereas the attitude wanes as the level of hierarchy goes up !his is probably because of the appraisal of performance based on the 1uantity or results 'f the employee%s output is good of better they get promotions and also get motivation to achieve better performance At the higher levels the results are more of sub5ective nature therefore promotions does not accrue on the basis of 1uantified results only *ost of the managers feel that the mechanism for potential appraisal is not ade1uate !his may be, because the training programmers are also not developed As far as feedbac( is from superiors is concerned, most of the top and senior management were of the view that they constantly receive feedbac( !his is because, they ta(e decisions crucial to the e)istence of the organization and therefore are closely watched and monitored as compared to the employees in the lower @ middle levels Again the top management felt that they with their superior decide about their 5ob but +00Q of senior management did not feel the same at all !his is because again due to power centeredness and power difference in the organization, being a tall organization the superior are not accessible to their subordinate 00Q of lower management thought that their creativity was definitely not ade1uately recognized whereas the top management believed that the organization encouraged creativity !his highlights the gap of communication in the organization and differences in the perception of culture in the organization by different grades of employee I0Q of lower management thought that the system was not free from biases and same is felt by most of the middle, senior and top management !his shows that human instincts and behaviors influence the performance appraisal system

D0

00Q of lower management was not clear about the goals and ob5ectives of the organization *ost of top management thought that they were clear or very clear, about the organization goals !his is because, the power distance is e)tent and communication system of the organization is not very effective !his also shows that transparency is lac(ing in the system I0Q of lower managers thought that the performance appraisal system did not identify their training needs /0Q of senior managers also thought the same But the view of top management differed in the sense that they felt that the system helped them surface their training needs !he reason being that the training programmes are not fully developed and are not constantly evaluated in the organization !he top management felt that there was a scope of super review !he senior management also felt a bit the same but lower and middle management (eep attending meetings and had already developed rapport with their superiors and so could easily tal( out their appraisal results whereas this is not so for lower and middle management !hey are not able to approach their senior easily and are therefore could not appeal for super8 reviews 00Q of lower managers said that they do not get opportunity for self review and reflection !his is because performance appraisal is lac(ing human touch to it !he appraisals are entirely based on performances, overloo(ing the cause of successes and failures !he appraisal system thus does not meet individual%s developmental needs and also does not contribute to employee%s 5ob satisfaction and moral development

DI

;: Findings 'ro/ O!serv$(ion $nd Disc ssions !he organization believed that self appraisal is the best for managers and above !o improve interpersonal communication and behavior assessment by peers and subordinates is essential !he performance of the employees is not regularly monitor and the re1uired feedbac( is provided to the subordinates from time to time !he appraisals are conducted at fi)ed intervals !he organization believes in using appraisal for rewarding and increments !here was a neither formal nor informal discussion on 5ob specification and tas(s to be accomplished for various departments !here was no formal performance appraisal ta(ing place till now in the organization !here fore, there were no written records of such activity in the personal files of the employees $owever people were being appraised informally by the superiors and got promoted or incremented accordingly 't would not be wrong to say that interpersonal relations and personal biases (i e li(ing and disli(ing influence the appraisals in the organization) !he management is in the process of restructuring and developing such policy in the organization

D/

ANALYSIS A INTERPRETATION
!his chapter deals in tabular presentation results and their analysis for the purpose of easy reading the section has been divided into two parts !abular form of :esponse 'nference :emar(s on each 1uestion

D,

9: In )o r co/0$n)B (1e <e) co/0e(encies reC ired 'or e$c1 ,o! $re $lre$d) iden(i'iedD Res0onse C$(egor) Hery true !rue Partly true 9ot true
80 70 60 50 40 30 20 10 0 No. of responses

No: o' res0onses 0 , DI

Percen($ge 0 / +/ I-

Very true True Partly true Not true

In'erence* *ost of the respondents (I-Q) found the above statement to be "9ot !rue3 !his was followed by +/Q of the respondents feeling that this statement was "Partly !rue% for their organization &nly /Q of the people found it to be "!rue% Re/$r<s* Although the appraise does not have a clear understanding of what is e)pected of him at the beginning of the year ('nference '), both he and the appraiser (now what his 5ob is all about !his also shows that although an employee (nows what his current to do to be rated higher by the reporting officer !he responsiveness in category of Partly !rue and 9ot !rue may be due to the face that 5ob content in ;indal Brothers is fle)ible and not well defined and some people find it difficult to define their 5obs $owever, most of the people have a general idea of the scope of their 5obs

-0

;: T1ere $re /ec1$nis/s (1$( 1el0 e/0lo)ees develo0 (1eir 0o(en(i$l 'or (1e ne2( ro nd o' ,o!D Res0onse C$(egor) Hery true !rue Partly true 9ot true
50 40 30 20 10 0 No. of responses Very true True Partly true Not true

No: o' res0onses 0 B 2B 20

Percen($ge 0 +0 B0 -0

In'erence* Luite a large number of respondents (-0Q) shared the view that the appraisal system did not give a clear understanding of all appraisals, 5ob to both appraiser and appraise by saying that it was "9ot !rue% &nly B0Q and +0Q of the respondents felt that the statement was "!rue% and "Partly !rue% respectively Re/$r<s* Although the appraise does not have a clear understanding of what is e)pected of him at the beginning of the year ('nference '), both appraisee and the appraiser (now what his 5ob is all about !his also shows that although an employee (nows what his current to do to be rated higher by the reporting officer !he responsiveness in category of Partly !rue and 9ot !rue may be due to the face that 5ob content in ;indal Brothers is fle)ible and not well defined and most people find it difficult to define their 5obs $owever, most of the people have a vague idea of the scope of their 5obs

-+

4: E/0lo)ees reg l$rl) receive 'eed!$c< $!o ( (1eir 0o(en(i$l 'or 1ig1er level ,o!sD Res0onse C$(egor) Hery true !rue Partly true 9ot true
70 60 50 40 30 20 10 0 No. of responses

No: o' res0onses 0 / I DB

Percen($ge 0 +0 +I0

Very true True Partly true Not true

In'erence* I0Q of the respondents agreed that the appraisal system did not helped them to (now their potential to perform at higher levels Plan their performance well by saying that it was "9ot !rue% &nly +0Q and +-Q people felt that this statement was "!rue% and "Partly !rue% Re/$r<s* !he above inference shows that the PA system in ;indal Brothers does not give feedbac( about "planning for performance% to its employees 't helps anticipating wor( needs in order to arrange wor( in logical order 't also helps in devising efficient methods to attain pre8determined plans Again due to fle)ibility in 5ob content, some people may have found problems in planning their performance systematically

-2

=: +o! ro($(ion is 0r$c(iced widel) (o 1el0 0eo0le develo0 (1eir 0o(en(i$l in new $re$sD Res0onse C$(egor) Hery true !rue Partly true 9ot true
50 40 30 20 10 0 No. of responses Very true True Partly true Not true

No: o' res0onses I +/ 2B 0

Percen($ge +D0 B0 0

In'erence. About B0Q of the respondents felt that the above statement was "Partly !rue% 't was followed by D0Q people feeling that it was "!rue% with +-Q believing that it was "Hery !rue% Re/$r<s* ;ob rotation is the most economical way of providing training to the employees 't facilitates both organization and individual development ;ob rotation gives an individual hand on e)perience for carrying out various different functional activities !he performance appraisal system should include this process in the training need identification performance

-D

E: T1e $00r$is$l s)s(e/ 0rovides $n o00or( ni() 'or sel'3review $nd re'lec(ionD Res0onse C$(egor) Hery true !rue Partly true 9ot true
80 70 60 50 40 30 20 10 0 No. of Responses

No: o' Res0onses 0 0 +D DI

Percen($ge 0 0 20 I-

Very true True Partly true Not true

In'erence

!here is a general agreement on then fact that the PA system in ;indal Brothers does provide ample opportunity for self8review and reflection I-Q of the people felt that it was "Partly !rue% with 20Q agreeing

Re/$r<s

!he presence of self8appraisal procedure in the PA appraisal system is an important reason for the above inference !he self appraisal includes 1uestions on ma5or achievements, constraints in performance, type of training re1uired, tas(sCactivities underta(en successfully during the year, problems faced etc 't also includes suggestions on ma(ing the 5ob interesting and challenging and plans to improve effectiveness 7ue to this fact, employees may have felt that they were participating actively in their own appraisal by self 8review and reflection on various issues

--

5: Pro/o(ions $re !$sed s(ric(l) on need r$(1er (1$n (o rew$rd individ $lsD Res0onse C$(egor) Hery true !rue Partly true 9ot true
50 40 30 20 10 0 No. of Responses Very true True Partly true Not true

No: o' Res0onses 0 2B 2+

Percen($ge 0 / B0 -2

In'erence

B0Q of the respondents believe that the above statement is "Partly !rue% !his was closely followed by -2Q of the respondents rating it as "9ot !rue% and /Q of the respondents feeling that it was "!rue%

Re/$r<s

!he performance appraisal is completely need based the organization recognizes and promotes high achievers only if there are vacancies available in the organization !his has a negative impact on people who are not rewarded and promoted duly for their good performance !here should be a system of rewarding employees either in monetary terms or in terms of recognition

-B

F: T1e $00r$is$l s)s(e/ gives e$c1 $00r$isee $n ide$ o' w1$( is e20ec(ed o' 1i/ ne2( )e$rD Res0onse C$(egor) Hery true !rue Partly true 9ot true
60 50 40 30 20 10 0 No. of Responses Very true True Partly true Not true

No: o' Res0onses 0 +0 20 +-

Percen($ge 0 20 B2 2/

In'erence

B2Q of the respondents felt that the above statement was "Partly !rue% !his was followed by 2/Q and 20Q of the respondents feeling that it was "9ot !rue% and "!rue% respectively

Re/$r<s

=ach employee needs to have an idea as to what accountabilities will he have if his appraisal is given a good remar( for wor(ing at higher levels !he appraisee should (now his potential, which will go a long way in his higher level 5obs

-0

G: I( is designed (o $id (1e $00r$isee $nd $00r$iser ,oin(l) 'or/ers ,o!D Res0onse C$(egor) Hery true !rue Partly true 9ot true
50 40 30 20 10 0 No. of Responses Very true True Partly true Not true

nders($nd (1e

No: o' Res0onses 0 +22 +-

Percen($ge 0 2/ -2/

In'erence

!here was a mi)ed response to the given statement --Q of the responses consisted of 2Partly !rue% ratings 2/Q respondents believed that this was "9ot !rue% whereas 2/Q believed that this was "!rue%

Re/$r<s

!he above inference implies that ;indal Brother%s PA system does not score well in the aspect of transparency in communicating an employee%s performance through performance review and discussion !he discussions between appraisal processes !he interaction on self appraisals is not a common feature and is only done on certain occasions (e)ceptionally good or bad performance etc ) !he presence of --Q responses as 2!rue3 may be due to good relationship and open communication shared by some of the appraiser appraise pairs

-I

H: T1e 0er'or/$nce $00r$is$l 0rovides $n o00or( ni() 'or sel' review $nd re'lec(ionD Res0onse C$(egor) very true true partly true not true
50 40 30 20 10 0 No. of Responses partly true not true very true true

No: o' Res0onses 0 2 2B 2D

Percen($ge 0 B0 -0

In'erence

*ost of the respondents agreed that the appraisal system catered to their development needs (B0Q believed that it was 2Partly !rue3) and it was very closely followed by -0Q saying it was 29ot !rue3 !here were -Q cases, which believed that it was "!rue%

Re/$r<s

Although the inference indicates that the PA system allowed mutuality, trust and open communication between superior and subordinates, there may be chances of biases in employees while rating this statement !he answers may have varied depending on pro)imity etc of the employee with his superior $owever present of B0Q "completely true% answers help us in obtaining a general view on the ability of PA system to allow communication between superiors and subordinates in ;indal Brothers !herefore, it can be assessed that the Performance Appraisal does provide ample opportunity for open communication between appraiser and appraise

-/

96: T1e $00r$is$l 0roced re $llows (1e $00r$isee (o e20ress 1is develo0/en($l needsD Res0onse C$(egor) very true !rue partly true not true
60 50 40 30 20 10 0 No. of Responses very true True partly true not true

No: o' Res0onses 0 / +0 20

Percen($ge 0 +0 D2 B2

In'erence

!he most common response on above statement was an astounding "9ot !rue% with B2Q people agreeing that the PA system was free of any biases 't was followed by D2Q saying that it was "!rue% and +0Q saying that it was "Partly !rue%

Re/$r<s

!he above inference implies that people are satisfied with the PA system in ;indal Brothers and believe that it provides scope for developing their potential !his may be due to the fact that the self appraised of the appraise invites suggestions on 5ob enrichment, training needs and steps to be ta(en to improve individual%s effectiveness

-,

99: T1e s)s(e/ 1$s sco0e (o correc( (1e !i$ses o' (1e $ssessor (1ro g1 $ s 0er reviewD Res0onse C$(egor) very true true partly true not true No: o' Res0onses 0 2 +DPercen($ge 0 2/ 0/

70 60 50 40 30 20 10 0 No. of Responses

very true true partly true not true

In'erence

0/Q of the people rated the above statement as "9ot !rue% 2/Q believed it was "Partly !rue% with -Q disagreeing by saying that it was "!rue%

Re/$r<s

A performance appraisal system, which is perceived as "bias 8free% by its e)ecutives, is an achievement for the organization 'n the PA system the reporting officer appraises a section of people whereas the reviewing officer appraises the performance of an entire department also the reviewing officer is the immediate superior of reporting officer Any disagreement between the assessments of an employee has to be duly discussed and recorded Also, any noticeable difference of opinion between self appraisal and appraisal by reporting officer has to be accounted for All the above factors help in correcting the biases, if any, of reporting officer

B0

9;: T1e $00r$is$l s)s(e/ 0rovides 'or $ 'r$n< disc ssion !e(ween $00r$iser $nd $00r$iseeD Res0onse C$(egor) very true !rue partly true not true No: o' Res0onses 0 0 0 -Percen($ge 0 +2 0 //

100 80 60 40 20 0 No. of Responses partly true not true very true True

In'erence*

An astounding //Q rated the above statement as not true with +2Q that it was true

Re/$r<s

Although, most of the people felt that there was mutuality and trust between appraiser and appraise, it may again depend on the pro)imity and relationship shared by an employee and hisCher boss !he ratings may be based, as the employees may have felt that a negative answer may adversely affect them !he reason behind this conclusion is that a low score on e)tent of communication and discussion between appraisers and appraise and high score on mutuality and trust give a contradictory view

B+

94: T1e 0roced re $llows 'or (1e co// nic$(ion o' CEOIs go$l (o (1e wor<'orceD Res0onse C$(egor) very true true partly true not true
80 70 60 50 40 30 20 10 0 No. of Responses

No: o' Res0onses 0 2 +0 D/

Percen($ge 0 20 I0

very true true partly true not true

In'erence

!he typical response in this case was "9ot !rue%, by I0Q of the respondents 20Q rated the above statement as "Partly !rue% and -Q as "!rue%

Re/$r<s

=ven if half of the respondents gave a mid8way answer, presence of --Q "6lightly !rue% answers give a negative picture of the above statement !his implies that the business goals are not well integrated with individual goals !here is no direct lin(age between the management plans and evaluation criteria !his may be due to the fact that either the business goals are not 1uantified enough or the management is not 1uic( enough to communicate its plans to the staff below

B2

9=: T1e $00r$is$l s)s(e/ !rings o ( (1e (r$ining needs o' (1e e/0lo)ees: Res0onse C$(egor) very true !rue partly true not true
50 40 30 20 10 0 No. of Responses partly true not true very true True

No: o' Res0onses 0 D 22 2B

Percen($ge 0 0 -B0

In'erence

B0Q of the respondents believed the above statement to be "9ot !rue% closely followed by --Q people believing it to be "Partly !rue% &nly 0Q believed it to be "!rue%

Re/$r<s

A few people get the training related to their competencies s(ills that needs to be enhanced for successful completion of their wor( most of the people do not get ade1uate training according to changes in their 5ob description i e responsibilities and G:A6

BD

9E: T1e 0er'or/$nce $00r$is$l s)s(e/ cl$ri'ies (1e c$reer 0ros0ec(sB $s0ir$(ions $nd in(en(ionsD

Res0onse C$(egor) very true true partly true not true

No: o' Res0onses 0 B -0 -0

Percen($ge 0 +0 /0 /0

80 70 60 50 40 30 20 10 0 No. of Responses

very true true partly true not true

In'erence

!he typical response (/0Q) for the above statement was "9ot !rue% +0Q employees believed it to be "Partly !rue% with an e1ual +0Q employees believing if to be "9ot !rue%

Re/$r<s

!he general picture drawn from the above inference is that all the employees are not clear as to what the PA system is all about and what is the reason behind its e)istence !his shows that PA system has ac1uired an important status in ;indal Brothers with all employees ac(nowledging its presence and essence

B-

95: T1e $00r$is$l s)s(e/ 0rovides $ r$(ion$l !$sis 'or s$l$r) reco//end$(ionsD Res0onse C$(egor) very true !rue partly true not true No: o' Res0onses 0 / +2/ Percen($ge 0 +0 2/ B0

60 50 40 30 20 10 0 No. of Responses very true True partly true not true

In'erence

B0Q of the respondents felt that the above statement was "9ot !rue% 2/Q responses included "Partly !rue% ratings whereas +0Q responses included "!rue% ratings

Re/$r<s

!he employees do not want a fi)ed increment for their great performance !he company should ma(e recommendations related to salary on the basis of regular performance feedbac( about every employee since the fre1uency of performance measurement varies from department to department, it is difficult to carry out this wor( smoothly

BB

9F: T1e co/0$n) rel$(es rew$rd (o )o r 0er'or/$nceD Res0onse C$(egor) very true !rue partly true 9ot true
80 70 60 50 40 30 20 10 0 No. of Responses

No: o' Res0onses 0 +0 D0

Percen($ge 0 20 B I2

very true true partly true not true

In'erence

*J *ost of the respondents (I2Q) felt that the above statement was "9ot !rue% 20Q believed it to be "!rue% whereas a mere /Q felt that it was "partly !rue%

Re/$r<s

!he company uses the reward system as a motivating force for enhancing the performance of its employees :ewards should be promptly given to high achievers in terms of increment, promotions, increased 5ob responsibilities etc for their accomplishment

B0

9G: %1$( <ind o' $n $00r$is$l s)s(e/ will !ring o ( (1e !es( o' $n e/0lo)eeD

Res0onse C$(egor) appraisal by all superiors appraisal by immediate superior appraisal by reference team appraisal by reference team and self

No: o' Res0onses +0 B

Percen($ge 20 +0

+B 20

D0 -0

40 35 30 25 20 15 10 5 0 No. of Responses

appraisal by all superiors

appraisal by i e!iate superior appraisal by referen"e tea appraisal by referen"e tea an! self.

Re/$r<s

!his shows that the relationship between appraiser and appraise, in ;indal Brothers, with respect to planning the performance is 1uite good !he subordinate in planning his performance !he appraiser helps the appraise in testing the soundness of his goals as well as of his plans for achieving them !his implies that there is active participation of both appraiser and appraise in performance planning !he reason behind "9ot !rue% answer may be due to the fact that many 5obs in ;indal Brothers are not well defined and therefore an elaborate planning on them is not done

BI

CONCLUSIONS A RECOMMENDATIONS
+ !his company proves that a ma5or amount of wor( towards developing an effective and efficient performance appraisal system has not been accomplished to the fullest

't seems that the organization is genuinely interested in improving the efficiency and utility of performance appraisal system to succeed in today%s dynamic environmentK t

O (w$rd Orien($(ion Per'or/$nce A00r$is$l S)s(e/ !he appraisal system should be more sensitive and responsive to current competitive environment !his is possible through ma(ing the organization Luality conscious in products and services to match international standards Austomer oriented (internally as well as e)ternally) Aost effective !echnology oriented >ocused towards collaboration and teamwor( People oriented >ocused towards performance standards >ocused towards values and culture that would help unbottle hidden talent

'n achieving the above, the PA system have a catalytic role to play

B/

PERIODIC PERFORMANCE RE-IE% AND PLANNIN.* !here should be some aspect in the PA forms, which deals with the effect of 'nternal 'nfluences, organizational influences and e)ternal influences on performance of employee to ma(e the PA system more sensitive to changes 'ncrease awareness of company goals in order to integrate company and individual e)pectations Aonducting training wor(shops for appraisers to remove biases and errors in appraisal 'ncreasing transparency and open communication and minimizing confidentiality in performance review discussions !he wor( done towards modifying and developing performance appraisal systems, time to time should be continued In(egr$(ing T@M in(o Per'or/$nce A00r$is$l 'ndividual rewards should be delin(ed with the PA system !he focus should shift to team rewards !o recognize individual e)cellence, the team rewards !o recognize individual e)cellence, the team should recommend rewards to tone up motivation levels in the entire team Aontinuous feedbac( and transparency in every system >ocus on customer delight, both internal and e)ternal

Lin<$ge wi(1 Rew$rds ?ood performers should be recognized and rewarded, whereas wea( performers need to be encouraged to become better performers PA systems when li(ed with individual rewards and promotions create more problems than they help in motivating people !hey encourage fewer employees and discourage more !hey do not develop the team spirit but rather enhance interpersonal comparisons and power politics !he focus should be shifted from rewarding the performance of few to development of performance of many

B,

$owever there is also a need for recognition and rewarding good wor( Alternative systems of rewarding with multiple rewardCrecognition mechanism are needed But these systems should be separated from other systems (li(e career planning) Role o' HRD $:7 should develop relevant competencies and wor( through empowering the line managers 7evelopment of subordinates and teams should be (ey function of line managers $:7 should facilitate the development of behavioral, managerial and technical (multi functional) competencies in line managers 2:ole analysis3 should find a place in ;indal Brothers 2role directories should be published with (ey functions for each role 6ystem effectiveness should be ensured through periodic review and survey of organizational climate, ethos, organizational effectiveness and employee satisfaction (concerning PA systems) IMPLICATION OF THE PRO+ECT 'n a simple way performance appraisal is meant to be an e)ercise to value a estimate what a person has done and how has he done !he nature of Performance appraisal and its effectiveness depends a great deal on how human resources in the organization are viewed and treated People are to be treated as resources of the organization Enli(e the other resources, the human resources have the capability of e)panding to unlimited e)tents with proper investment in human capabilities !herefore, an organization interested in developing the capabilities of its employees, should understand the nature and capabilities re1uired to perform different functions as well as the dynamics underlying the development of these capabilities in an organizational content !hese capabilities can be considered to fall under four categories !hey are.8 (i) !echnical capabilities

00

(ii) *anagerial capabilities (iii) Behavioral (human) capabilities iv) Aonceptual capabilities !he e)tents to which the various capabilities are re1uired for the performance of the 5ob differ from level to level in the organizational hierarchy New O!,ec(ive o' Per'or/$nce A00r$is$l Performance appraisal system can serve the following purposes if designed properly (a) $elp each employee to understand more and more about his role and become clear about his functions (b) $elps each employee to understand his own strengths and wea(nesses with respect to his role and functions of the company (c) $elps identifying the developmental needs of employees (d) $elps increase mutuality between employee and his superiors (e) Provides an opportunity to the employees for self reflection and individual goal setting (f) $elps in preparing employees for performing at high levels by continuously enforcing the re1uired 1ualities (g) Areate a positions and healthy climates in the organization

0+

RECOMMENDATIONS

!he company should try to avoid employee resistance, which is associated with change worlds true change follows instance !his for all (inds of systems be it Performance Appraisal

!he $: 7ept should attempt to obtain the ma)imum agreement of *anagers in respect of needs and ob5ectives and purpose of the systems

Being in the field of it improve the fre1uency of the trading modules and wor(shops

*ore stress relieving pac(ages should be offered to the mentally stressed staff &vertime should be ta(en care of at time of performance appraisal, which would motivate the employees to perform better for longer hours

0 I

Performance appraisal should after at proper span of time Performance appraisal should be done by e)pert person

02

SAMPLE @UESTIONNANIRE
' have underta(en a pro5ect on PERFORMANCE APPRA SA! S"STEM: !he information furnished by you will help (nowing the effectiveness of the present appraisal and reward system and if need be designing of a new appraisal system !he data will be (ept confidential and will be used for academic purpose only 9: In )o r co/0$n)B (1e <e) co/0e(encies reC ired 'or e$c1 ,o! $re $lre$d) iden(i'ied: a) Hery true b) true c) Partly true d) not true ;: T1ere $re /ec1$nis/s (1$( 1el0 e/0lo)ees develo0 (1eir 0o(en(i$l 'or (1e ne2( r ng o' ,o!: a) very true b)true c) partly true d) not true 4: E/0lo)ees reg l$rl) receive 'eed!$c< $!o ( (1eir 0o(en(i$l 'or 1ig1er level ,o!s a) very true b)true c) partly true d) not true =: +o! ro($(ion is 0r$c(iced widel) (o 1el0 0eo0le develo0 (1eir 0o(en(i$l in new $re$s: a) very true b)true c) partly true d) not true E: Yo r co/0$n)&s 0ro/o(ion 0olicies $re cle$rl) de'ined $nd s1$red wi(1 $ll e/0lo)ees: a) very true b)true c) partly true d) not true 5: Pro/o(ions $re !$sed s(ric(l) on need r$(1er (1$n (o rew$rd individ $lsD a) very true b)true c) partly true d) not true F: T1e $00r$is$l s)s(e/ gives e$c1 $00r$isee $n ide$ o' w1$( is e20ec(ed o' 1i/ ne2( )e$rD a) very true b)true c) partly true d) not true G: I( is designed (o $id (1e $00r$isee $nd $00r$isers ,oin(l) nders($nd (1e 'or/er&s ,o!D a) very true b)true c) partly true d) not true H: T1e 0er'or/$nce $00r$is$l 0rovides $n o00or( ni() 'or sel' review $nd re'lec(ionD a) very true b)true c) partly true d) not true 0D

96: T1e $00r$is$l 0roced re $llows (1e $00r$isee (o e20ress 1is develo0/en($l needsD a) very true b)true c) partly true d) not true 99: T1e s)s(e/ 1$s sco0e (o correc( (1e !i$ses o' (1e $ssessor (1ro g1 $ s 0er reviewD a) very true b)true c) partly true d) not true 9;: T1e $00r$is$l s)s(e/ 0rovides 'or $ 'r$n< disc ssion !e(ween $00r$iser $nd $00r$iseeD a) very true b)true c) partly true d) not true 94: T1e 0roced re $llows 'or (1e co// nic$(ion o' CEOIs go$l (o (1e wor<'orceD a) very true b)true c) partly true d) not true 9=: T1e $00r$is$l s)s(e/ !rings o ( (1e (r$ining needs o' (1e e/0lo)ees: a) very true b)true c) partly true d) not true 9E: T1e 0er'or/$nce $00r$is$l s)s(e/ cl$ri'ies (1e c$reer 0ros0ec(sB $s0ir$(ions $nd in(en(ions: a) very true b)true c) partly true d) not true 95: T1e $00r$is$l s)s(e/ 0rovides $ r$(ion$l !$sis 'or s$l$r) reco//end$(ions: a) very true b)true c) partly true d) not true 9F: T1e co/0$n) rel$(es rew$rd (o )o r 0er'or/$nce: a) very true b)true c) partly true d) not true 9G: %1$( <ind o' $n $00r$is$l s)s(e/ will !ring o ( (1e !es( o' $n e/0lo)eeD a) appraisal by all superiors b) appraisal by immediate superior c) appraisal by reference team c) appraisal by reference team and self 9H: How do )o s 00or( )o r s !ordin$(esD RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR

0-

sss

#I#LIO.RAPHY3
A : G&!$A:' A B ?EP!A D00 7=?:== APP:A'6A< (!H :A&) '9!=:9=!

0B