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 15 employees with the aid of
a !uestionnaire in which 5"point li#ert scale and rating scale were employed. $ost of
the respondents rated both subjective and objective measures as preferable. %t 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 wor#force.

CHAPTER 1
INTRODUCTION
1.1 INTRODUCTION TO THE TOPIC
&erformance appraisal is a method of evaluating the behaviour of employees in
the wor# spot, normally including both the !uantitative and !ualitative aspects of job
performance. %t is a systematic and objective way of evaluating both wor# related
behaviour and potential of employees. %t 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 wor#er motivation and performance.
(. To provide accurate information to be used in managerial decision ma#ing.
These goals are interrelated because one of the principal ways that managers motivate
wor#ers is by ma#ing decisions about how to distribute outcomes to match different
levels of performance.
Developing a Performance Appraisal Ss!em
$anagers can use the information gained from performance appraisal for two main
purposes'
1. )evelopmental purposes such as determining how to motivate a wor#er to
perform at a high level, evaluating which of a wor#er*s wea#nesses can be
corrected by additional training, and helping a wor#er formulate appropriate
career goals.
(. +valuative, decision"ma#ing purposes such as deciding whom to promote, how
to set pay levels, and how to assign tas#s to individual wor#ers.
"e!#o$s of Appraisal
The measures managers use to appraise performance can be of two types'
objective or subjective.
O%&ec!ive meas'res such as numerical counts are based on facts. They are
used primarily when results are the focus of &erformance appraisal. The number
of televisions a factory wor#er assembles in a day, the dollar value of the sales a
salesperson ma#es in a wee#, 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.
S'%&ec!ive meas'res are based on individuals* perceptions, and can be used
for appraisals based on traits, behaviors, and results. ,ecause subjective
measures are based on perceptions, they are vulnerable to many of the biases
and problems that can distort person perception. ,ecause 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.
()*+$egree appraisal " a wor#er*s performance is evaluated by a variety of
people who are in a position to evaluate it. - ./"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 feedbac# based on evaluations from each of these
sources. 0hen ./" 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. 0hile ./"degree appraisals can be used for many different #inds of
wor#ers they are most commonly used for managers.
1., STATE"ENT O- THE PROB.E"
The performance appraisal of the employees in the organization should be an
effective tool for measuring the employee1s performance. %f the performance not
measured in a real manner it will be a critical issue. - study on impact of performance
appraisal was underta#en to study the reasons and ways to improve the condition.
1.( OB/ECTI0ES O- THE STUD1
The present study on 2impact of performance appraisal system3 was underta#en
with the following objectives'
To find whether the existing appraisal system in the organization exactly
measures the employee1s performance.
To find whether the feedbac# from the appraisal system assists in the employee1s
training and development.
To determine the gaps in the existing system.
To determine what type of appraisal did the employee1s really loo#ing for.
To find is there is any opportunities provided for the employees to improve their
performance.
1.2 SCOPE O- THE STUD1
The scope of the proj ect i s ful l y dependent upon the obj ecti ves of
the proj ect.
Thi s study can be hel pful to the company for conducti ng any further
research.
The study i s al so hel pful i n fi ndi ng out the respondent1 s opi ni on
towards certai n attri butes.
%t i s al so hel pful i n fi ndi ng out the reach and effecti veness of the
performance apprai sal syst em.
Thi s study al so serves as a base for understandi ng the percepti on
about the empl oyees regardi ng thei r performance apprai sal .
0ith the results of the study the company can improve their standards of their
appraisal system
1.3 H1POTHESIS O- THE STUD1
The study includes the calculation of null hypothesis and alternative hypothesis
by comparing age group of the respondents and preference of the appraisal system.
4ull hypothesis is used for testing. %t 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.) .I"ITATIONS O- THE STUD1
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. 5o it cannot
be generalized as a whole.
5ome of the respondents were not even ready to spare time with the
researcher.
There are many respondents who hesitated to answer the !uestionnaire.
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'
%ntroduction
6oncepts and review
7esearch methodology
)ata analysis and interpretations
7esults and )iscussions
CHAPTER ,
CONCEPTS AND RE0IE4
,.1 CONCEPTS O- THE STUD1
,.1.1 Defini!ion of Performance Appraisal
- formal and systematic process, by means of which the job relevant strength
and wea#ness of the employees are identified, observed, measured and developed.
,.1., Concep! of Performance Appraisal
%n the best of worl ds, empl oyees woul d l ove thei r j obs, l i #e thei r co"
wor#ers, wor# hard for thei r empl oyees, get pai d wel l for thei r wor#, have
ampl e chances for advancement, and fl exi bl e schedul es so they coul d
attend to personal or fami l y needs when necessary.
The performance apprai sal i s to assess a person and l et hi m to
#now where he i s bei ng standi ng al ong wi th the j ob. %t i s to fi nd whether
he i s performi ng wi th hi s tas# or not.
,., RE0IE4 O- RE.ATED .I TERATURE
$ ,owel s and 8 6oates 91::.;
The $anagement of &erformance as 7hetori c on 7eal i ty
-78<$+4T'
$anagers are mostl y apprai sed by resul ts, but resul ts al one cannot
refl ect performance because i t i s sti l l affected by many other factors.
7+5+-76='
The probl ems faced by the organi zati on experi enci ng some
di ffi cul ti es were measuri ng performance and the extra demands made on
managers.
6>46?<5%>4'
$anagement shoul d provi de the enabl i ng condi ti ons through whi ch
wor# i s performed. &erformance apprai sal shoul d be an opportuni sti c
means to address performance i ssues rather than a coherent systemati c
process.
) 0i nstanel y and @ 5tuart"5mi th 91::/;
7+5+-76='
6oncl usi ve evi dence that l eads to i mproved performance i s
l ac#i ng.
4ot enough ti me i s gi ven to the process.
%t rei nforces modes of i ntrusi ve control .
6>46?<5%>4'
The focus must move away from measurement and j udgement
towards devel opi ng, understandi ng and bui l di ng up trust to al l ow a
genui ne di al ogue to ta#e pl ace.
,.( CO"PAN1 PRO-I.E
5pan systems a matured growing %T services company with 1A years of
experience. The company focussing on optimizing and aligning %T initiatives with
business strategies.
The company has achieved a 6$$ level A and %5> :1"( and expecting to
achieve 6$$ level 5. 5ales offices at <5-, 5weden and in %ndia give the company for
easy access to global mar#ets. The company have multiple development centres in
,angalore and planned to expand their services to all over the %ndia.
The business model deliver value through optimal use of offshore and onsite
resources and through managed relationships under the 7$ model. 6lients get the
value through the pragmatic approach to an engagement rather than a cost based
model or a purely process driven model. %rrespective of activity with the clients the
company have demonstrable methods of showing enhanced productivity.
IT Infras!r'c!'re
15 s!.ft. offshore %t development facility
1(B #bps dedicated (ACD internet access with secure firewall protection.
%ntel &entium AE windows (, sun 5olaris and %ntel based red ?inux servers.
AF wor#stations, T6& based 1E1 $,&5 +thernet ?-4 on 1 $,&5
switches
6omplete data bac#up recovery infrastructure with disaster recovery facility
%n G house training facilities.
,.2 PRODUCT PRO-I.E
IT Services
5pan systems are tailor" made to clients needs and built around the following
#ey areas relevant to any business enterprise'
-pplication development" customized software applications based on the
architecture constructed by our business consulting services.
,usiness intelligence" productivity solutions that empower decision ma#ers to
access data across the enterprise.
+ducation and training" training and up gradation of s#ills in data modelling,
<$? modelling, data ware housing and business intelligence for corporate.
Con!rac!ing

&eople, project and system recovery support. 5pan systems offers solutions that
are strategically aligned with corporate business goals. 5pan systems underta#e
mobilization of personnel under placement at the client identified locations. >n re!uest,
or at the conclusion of the contract period, the deputed personnel are demobilised from
the client sites.
IT E5per!ise
>perating systems' windows :BE(EH&, 7ed =at ?inux and 5un 5olaris.
)evelopment Tools' Iisual ,asic, &ower ,uilder, >racle )eveloper.
)atabases' >racle, 5ybase, 5J? 5erver,),( and $y5!l
<$? $odelling tools' describe and rational rows.
)ata modelling tools' +7 5tudio, +7 0in and power designer
8roupware' ?otus notesEdomino, $5 exchange.
,usiness intelligence' >racle discoverer, business objects and congas.
)ata warehouse tools' )T 5tudio
0eb tools' $acro media dream weaverEflash and adobe &hotoshop.
CHAPTER (
"ETHODO.O61
(.1 INTRODUCTION
7esearch is a scientific and systematic search for pertinent information on a
specific topic. 7esearch is an art of scientific investigation. -ccording to 6lifford 0oody,
27esearch comprises defining and redefining problems, formulating hypothesis or
suggested solutions, collecting, organizing and evaluating data, ma#ing deductions and
reaching conclusions and at last carefully testing the conclusions to determine whether
they fit the formulating hypothesis3.
(., RESEARCH DESI6N
7esearch design aids the researcher in the allocation of limited resources by
posing crucial choices in methodology.
7esearch design is the plan and structure of investigation so conceived as to
obtain answers to research !uestions. The plan is the over all scheme or program of the
research. %t includes an outline of what the investigator will do from writing hypothesis
and their operational implications to the final analysis of data.
DESCRIPTI0E RESEARCH DESI6N
The desi gn for thi s study i s descri pti ve research desi gn. Thi s desi gn
was chosen as i t descri bes accuratel y the characteri sti cs of a parti cul ar
system as wel l as the vi ews hel d by i ndi vi dual s about the system. The
vi ews and opi ni ons of empl oyees about the system hel p to study the
sui tabi l i ty of the system as wel l as the constrai nts that mi ght restri ct i ts
effecti veness
(.( SA"P.I N6 TECHNI7UES
The sampl i ng techni !ue adopted for the purpose of the study i s
conveni ence sampl i ng.
-s the name i mpl i es a convenience sampl e means sel ecti ng
parti cul ar uni ts of the uni verse to consti tute a sampl e.
SA"P.E SI8E
The sampl e si ze of the study i s 15. Thi s sampl e i s consi dered as
representati ve.
(.2 DATA CO..ECTION
PRI"AR1 SOURCE9
The pri mary source of data i s through Juesti onnai re.
SECONDAR1 SOURCE9

The secondary source of i nformati on i s based on the vari ous detai l s
retri eved from Kournal s, 0ebsi tes and $agazi nes.
The data for this study has been collected through primary sources. &rimary data
for this study was collected with the help of Juestionnaires and evaluation feedbac#
forms. The extra information was collected through interviews with the employees at
various companies.
(.3 TOO.S O- THE STUD1
(.3.1 Tool 'se$ for $a!a collec!ion9
The tool used for col l ecti ng the data i s through the :'es!ionnaire.
The mai n reason for sel ecti ng the !uesti onnai re method for the study i s'
7espondents have ade!uate ti me to gi ve wel l thought out answers.
The ti me of the study was al so a l i mi ti ng factor.
Fi ve poi nter scal es were use through the Juesti onnai re.
(.3., S!a!is!ical !ools 'se$
5tati sti cal tool s l i #e Tabul ati on, 8raphi c 7epresentati ons,
percentage anal ysi s and, 6hi "5!uare, are used i n the compi l ati on and
computati on of data.
C#i+S:'are Tes!
The 6hi"5!uare test is one of the simplest and most widely used non"parametric
test in statistical wor#. %t is practically useful in tests involving nominal data. %t can be
used for higher scales. %t ma#es no assumptions about the population being sampled. %f
6hi"5!uare is zero it means that the observed and the expected fre!uencies completely
coincide, while the greater the value of 6hi"5!uare is , the greater would be the
discrepancy between observed and the expected fre!uencies.
The formula for computing 6hi"5!uare is
CHI+S7UARE ; <O+E=
,
> E
0here > L >bserved Fre!uency, + L +xpected Fre!uency
The calculated value of chi"s!uare is compared with the table value of chi"s!uare
for given degrees of freedom of specified level of significance. %f the calculated value of
chi"s!uare 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. >n 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.
PERCENTA6E ANA.1SIS9
&ercentage refers to a special #ind of ratio. &ercentage is used in
ma#ing comparison about two or more series of data. &ercentage as also used to
describe relationship. %t is also used to compare the relative terms of two or more
series of data.
-orm'la9
N'm%er of respon$en!s
1**
To!al no. of respon$en!
(.3.( AREA O- THE STUD1
To study the %mpact of &erformance -ppraisal 5ystem at 5&-4 5ystems,
,angalore.
(.3.2 C.OSED+ENDED 7UESTIONS
5uch !uestions are also called fixed alternative !uestions. This method is also
facilitators the respondent to answer in some other way on other alternative is provided
as a choice.



CHAPTER ? 2
ANA.1SIS AND INTERPRETATION
2.1 ANA.1SIS O- THE DATA
Ta%le 1
Ta%le s#o@ing Se5 of !#e respon$en!s

5ource' &rimary data
Inference
From the above table it is inferred that out of 5 respondents BBM of them are
male and 1(M of the respondents are female.
-ig're 1
sex no. of
respondent
s
5imple
percentage
$ale
female
1.(
1B
BB
1(

Ta%le ,
Ta%le s#o@ing age gro'p of !#e respon$en!s
5ource' &rimary data

Inference
The above table shows that (BM of the respondents are between the ages (A"(B,
(/M of the respondents are above .B, 1BM of the respondents are (:".. and .A".B
and only 1M of the respondents are between the ages
1:"(..
-ig're ,
-ge
group
4o. of
respondent
s
5imple
percentage
1:"(.
(A"(B
(:"..
.A".B
-bove .B
15
A(
(D
(D
.:
1
(B
1B
1B
(/

Ta%le (
Ta%le s#o@ing !#e $a!e of &oining of !#e respon$en!s
)ate of joining 4o of
respondent
s
5imple
percentage
D1"B
B1":
:1"(
(1"D
.
15
.
1(
(
1
(
/B

5ource' &rimary data

Inference
The above table /BM of the respondents are joined during (1"D, (M of the
respondents are joined during :1"(, 1M of the respondents are joined during B1":
and (M of the respondents are joined during D1"B.
-ig're (
Ta%le 2
Ta%le s#o@ing !#e preference of !#e appraisal

5ource' &rimary data

Inference
The above table shows that /5M of the respondents prefer supervisors appraisal,
(M of the respondents prefer subordinates appraisal and remaining 1M of the
respondents prefer peers appraisal.
&reference
of appraisal
4o of
respondent
s
5imple
percentage
&eers
5ubordinates
5upervisors
15
(1
11A
1
1A
D/

-ig're 2



Ta%le 3
Ta%le s#o@ing !#e %asis of !#e performance appraisal
5ource' &rimary data
,asis of
performance
appraisal
4o of
respondent
s
5imple
percentage
Juality
Target
,oth
1B
1(
1(
1(
B
B
Inference
The above table shows that BM of the respondents prefer both the !uality and
target for their basis of performance appraisal, 1(M of the respondents prefer !uality
alone and BM of the respondents prefer target alone.
-ig're 3
Ta%le )
Ta%le s#o@ing fre:'enc of !#e appraisal ss!em
5ource' &rimary data
Fre!uency
of appraisal
4o of
respondents
5imple
percentage
$onthly
=alf yearly
-nnual
./ degree
:
/
D5
/
/
A
5
A

Inference
From the above table shows that 5M of the respondents prefer annual
appraisal, AM of the respondents prefer half yearly appraisal, /M of the respondents
prefer monthly appraisal and AM of the respondents prefer ./ degree appraisal.
-ig're )

Ta%le A
Ta%le s#o@ing performance appraisal
&erformance
appraisal
based on
4o of
respondent
s
5imple
percentage
&ersonality
traits
,ehaviour
7esults
-ll the above
/
:
15
1(
A
/
1
B
5ource' &rimary data
Inference
From the above table shows that BM of the respondents prefer personality
traits, behaviour and results, 1M of the respondents prefer results alone, /M of the
respondents prefer behaviour, AM of the respondents prefer personality trait

-ig're A
Ta%le B
Ta%le s#o@ing !pes of appraisal

Types of
appraisal
4o of
respondent
s
5imple
percentage
5ubjective
>bjective
,oth
1B
1B
11A
1(
1(
D/
5ource' &rimary data
Inference
The above table shows that D/M of the respondents prefer both subjective and
objective factors, 1(M of the respondents prefer subjective alone and 1(M of the
respondents prefer objective alone.
-ig're B

Ta%le C
Ta%le s#o@ing an gen$er $iscrimina!ion
,ased on
gender, any
4o of
respondent
5imple
percentage
discrimination s
Nes
4o
AB
1(
.(
/B

5ource' &rimary data
Inference
The above table shows that /BM of the respondents said that there is no gender
discrimination and the remaining .(M said there is gender discrimination.

-ig're C
Ta%le 1*
Ta%le s#o@ing $ail con!ac! a! !#e !ime of appraisal
)aily
contact at
the time of
appraisal
4o of
respondents
5imple
percentage
5-
-
46
)
5)
:
D(
.
..
/
/
AB
(
((
A

5ource' &rimary data

Inference
The above table that ABM of the respondents agree that they are having daily
contact, ((M of the respondents are having no comment, (M of the respondents are
disagree with the daily contact, .M of the respondents are strongly agree with the daily
contact and (M of the respondents are strongly disagree with the daily contact.
-ig're 1*

Ta%le 11
Ta%le s#o@ing fee$%acD given a! !#e !ime of appraisal
Feedbac#
given at the
time of
appraisal
4o of
respondent
s
5imple
percentage
5-
-
46
)
5)
(1
BA
.
1(
.
1A
5/
(
B
(

5ource' &rimary data

Inference
The above table shows that 5/M of the respondents are agree with the feedbac#
given at the time of appraisal, (M of the respondents given no comment, BM of the
respondents are disagree with the feedbac#, 1AM of the respondents are strongly agree
with the feedbac# and (M of the respondents are strongly disagree with the feedbac#
given at the time of appraisal.
-ig're 11

Ta%le 1,
Ta%le s#o@ing appraisal eval'a!es s!reng!# an$ @eaDnesses
-ppraisal
evaluates
strength and
wea#nesses
4o of
respondent
s
5imple
percentage
SA
A
NC
D
SD
36
63
36
09
06
24
42
24
06
04

5ource' &rimary data

Inference
The above table shows that A(M of the respondents agree with evaluating their
strength and wea#nesses, (AM of the respondents are strongly agree with their
evaluation, (AM of the respondents given no comment based on their evaluation,/M of
the respondents are disagree with the evaluation and AM of the respondents are
strongly disagree with the evaluation of strength and wea#nesses.
-ig're 1,
Ta%le 1(
Ta%le s#o@ing e5ac!l eval'a!es !#e sDill gaps

+xactly evaluates the
s#ill gaps
4o of
respondent
s
5imple
percentage
5-
-
46
)
5)
15
BA
.:
1(

1
5/
(/
B

5ource' &rimary data

Inference
The above table shows that 5/M of the respondents are agree with evaluation of
s#ill gaps, (/M of the respondents given no comment, 1M of the respondents are
strongly agree with evaluation of s#ill gaps and BM of the respondents are disagree with
the evaluation of the s#ill gaps.
-ig're 13
Ta%le 12
Ta%le s#o@ing is !#e organiEa!ion provi$ing effec!ive !raining


5ource' &rimary data

Inference
The above table shows that ./M of the respondents given no comment regarding
effective training, .(M of the respondents are agree with the effective training, (AM of
>rganization
providing
effective
training
4o of
respondent
s
5imple
percentage
5-
-
46
)
5)
./
AB
5A
:
.
(A
.(
./
/
(
the respondents are strongly agree with the effective training, /M of the respondents
are disagree with the effective training and (M of the respondents are strongly disagree
with the effective training.

-ig're 12
Ta%le 13
Ta%le s#o@s is !#e appraisal #elps in personal gro@!#

5ource' &rimary data

Inference
-ppraisal
helps in
personal
growth
4o of
respondent
s
5imple
percentage
5-
-
46
)
5)
./
/:
.:
/

(A
A/
(/
A

The table shows that A/M of the respondents are agree with their personal growth,
(/M of the respondent1s given no comment, (AM of the respondents are strongly agree
with their personal growth and AM of the respondents are disagree with their personal
growth.
-ig're 13
Ta%le 1)
Ta%le s#o@s appraisal #elps in promo!ion aspec!s

5ource' &rimary
data

Inference
-ppraisal helps in
promotion aspects
4o of
respondent
s
5imple
percentage
5-
-
46
)
5)
A5
B1
15
:

.
5A
1
/

The table shows that 5AM of the respondents are agree with the promotion aspects,
.M of the respondents are strongly agree, 1M of the respondents given no comment
and /M of the respondents are disagree with the promotion aspects.
-ig're 1)
Ta%le 1A
Ta%le s#o@s recommen$a!ion for &o% ro!a!ion

5ource' &rimary data

Inference
7ecommendation
for job rotation
4o of
respondents
5imple
percentage
Nes
4o
1(
.
B
(
The above table shows that BM of the respondents recommended for their job
rotation and (M of the respondents are not recommended the job rotation for their
development.
C#ar! 1A
Ta%le 1B
Ta%le s#o@s recommen$a!ion for &o% enlargemen!

7ecommendatio
n
For job
enlargement
4o of
respondent
s
5imple
percentage
Nes
4o
1.5
15
:
1
5ource' &rimary data

Inference
The above table shows that :M of the respondents recommended for their job
enlargement and 1M of the respondents are not recommended the job enlargement for
their development.
-ig're 1B

Ta%le 1C
Ta%le s#o@s
i$eas !o
recommen$
for !#eir
$evelopmen!


5ource' &rimary data

Inference
%deas to recommend
for their development
4o of
respondent
s
5imple
percentage
Nes
4o
.
1(
(
B
The above table shows that BM of the respondents recommended their ideas
for their development and (M of the respondents are not recommended their ideas for
their development.
-ig're 1C
Ta%le ,*
Ta%le s#o@s face !o face in!erac!ion @i!# !#e s'pervisor

Face to face
interaction with
supervisor
4o of
respondent
s
5imple
percentage
Nes
4o
15
A5
D
.
5ource' &rimary data

Inference
The above table shows that DM of the respondents are agreeing with face to
face interaction with the supervisor and .M of the respondents are not agree with the
face to face interaction with the supervisors.
-ig're ,*
Ta%le ,1
Ta%le s#o@s oppor!'ni!ies !o improve performance
>pportunities to
improve performance
4o of
respondent
s
5imple
percentage
Nes
4o
1(:
(1
B/
1A

5ource' &rimary data

Inference
The above table shows that B/M of the respondents are agree with their
opportunities given by the organization and 1AM of the respondents are not agree with
the opportunities given by the organization.
-ig're ,1
Oppor!'ni!ies !o improve performance
Ta%le ,,
Ta%le s#o@s appraisal c#anges o'r a!!i!'$e>%e#avio'r


5ource' &rimary data
Inference
The above table shows that DM of the respondents are agree with the changes
in attitude and behaviour ant the remaining .M of the respondents are disagree with
the changes in attitudeEbehaviour during appraisal period.

-ig're ,,




-ppraisal changes
your -ttitude
E,ehaviour
4o of
respondent
s
5imple
percentage
Nes
4o
15
A5
D
.
Ta%le ,(
Ta%le s#o@s sa!isfie$ @i!# C-R
5atisfied with 6F7 4o of
respondent
s
5imple
percentage
Nes
4o
1(
.
B
(

5ource' &rimary data

Inference
The above table shows that BM of the respondents are satisfied with 6F7
ratings and the remaining (M of the respondents are dissatisfied.
-ig're ,(
Ta%le ,2
Ta%le s#o@s increase of salar % performance ra!ings

5ource' &rimary data
Inference
The above table shows that DBM of the respondents are satisfied with the
increase of salary through performance ratings and the remaining ((M of the
respondents are dissatisfied.
-ig're ,2

&erformance ratings increase
your salary
4o of
respondent
s
5imple
percentage
Nes
4o
11D
..
DB
((
Ta%le ,3
Ta%le s#o@s #app @i!# presen! appraisal ss!em


5ource' &rimary data

Inference
The above table shows that D/M of the respondents are happy with the present
appraisal system and (AM of the respondents are unhappy with the present appraisal
system.

-ig're ,3
=appy with
present appraisal
4o of
respondent
s
5imple
percentage
Nes
4o
11A
./
D/
(A
2., H1POTHESIS TESTIN6
C#i+s:'are !es! !o fin$ o'! !#e comparison %e!@een Age gro'p of !#e respon$en!s
an$ !#e preference of performance appraisal !pes.
SUBJECTIVE OBJECTIVE BOTH TOTAL
19-23 09 06 - 15
24-28 09 06 27 42
29-33 - - 27 27
34-38 - 06 21 27
Above 38 - - 39 39
TOTAL 18 18 114 150
N'll Hpo!#esis
There is no relationship between -ge group of the respondents and the
preference of performance appraisal types.
Al!erna!ive Hpo!#esis
There is relationship between -ge group of the respondents and the
preference of performance appraisal types.
.evel of Significance
5M level of significance
Tes! S!a!is!ics
H
(
L 9>i" +
i
;
(
+
i
Calc'la!ion
Inference
The
calculated value is
B.A( where as the
tabulated value for
9r"1; 9c"1; i.e., 95"1;
>i +
i
9>i" +
i
;
(
9>i" +
i
;
(
E +
i
:
/

:
/
(D

(D

/
(1

.:
1.B
1.B
11.A
5.A
5.A
.1.:(
..(A
..(A
(.5(
..(A
..(A
(.5(
A./B
A./B
(:./A
51.BA
1D./A
1(:.:/
15./B
.:(1/
(A.(/
1.A:D
1.A:D
A1.::
1.A:D
D./1D
.(.A
(1.:(
(1.:(
BD./:
(B.B
:.B
11.A
..11
.1B
.D5
..(.
..(.
(.A
..(.
(..5
.11
A./D
A./D
(.:5
B.A(
9."1; for 5M level of significance is 15.5D. Thus calculated value is greater than the
tabulated value. The null hypothesis is rejected and the alternative hypothesis i.e.,
There is relationship between -ge group of the respondents and the preference of
performance appraisal types is accepted.
CHAPTER 5
3.1 -INDIN6S O- THE STUD1
BBM of the respondents were male.
$ajority of the respondents 9(BM; are between the age of (A"(B and the low
level 91M; was between the age of 1:"(..
/BM of the respondents are joined in the year of (1"D and the low level (M
were joined in the year of 1:D1"B.
/5M of the respondents prefer supervisors for their appraisal and the low level
1M prefer peers for their appraisal.
BM of the respondents prefer both the !uality and target for their basis of
performance appraisal and low level BM prefer target for their basis of
performance appraisal.
5M of the respondents prefer the fre!uency of appraisal as annual and the low
level AM prefer ./ degree.
BM of the respondents prefer that performance appraisal should be based on
all9personality traits, behaviour and results; and the low level AM prefer
personality traits.
D/M of the respondents prefer both 9subjective and objective; the appraisal and
the low level 1(M prefer subjective and objective appraisal.
/BM of the respondents said that there is no gender discrimination.
ABM of the respondents are agree with daily contact at the time of appraisal and
the low level (M were strongly disagree.
5/M of the respondents are agree with feedbac# given at the time of appraisal
and the low level (M were strongly disagree.
A(M of the respondents are agree with evaluation of the strength and
wea#nesses at the time of appraisal and the low level AM were strongly disagree.
5/M of the respondents are agree with evaluation of s#ill gaps and the low level
BM were disagree with this.
./M of the respondents having no comment based on effective training after
appraisal review and the low level (M were strongly disagree.
A/M of the respondents are agree with the personal growth of the individuals and
the low level AM were disagree.
5AM of the respondents are agree with the promotional aspects through
appraisal and the low level /M were disagree.
BM of the respondents are recommended for job rotation.
:M of the respondents are recommended for job enlargement.
(M of the respondents recommended some ideas for their development.
DM of the respondents are agreeing with the face to face interaction with the
supervisor.
B/M of the respondents are agreeing with opportunities to improve their
performance after appraisal.
DM of the respondents are agreeing with the changes in attitudeEbehaviour after
appraisal.
BM of the respondents are satisfied with 6F7 9 critical factor ratings ;
DBM of the respondents are agreeing with increase in their salary through 6F7
ratings.
D/M of the respondents are happy with the present appraisal system.
The chi"s!uare analysis show that the comparison between the age of the
respondents and types of appraisal level calculated value of x
(
.
3., SU66ESTIONS
3.,.1 SU66ESTIONS B1 THE E"P.O1EES
The organization should conduct the following programmes for their development
which are
. $odelling software
5eminars in some of the functional areas li#e
Technical aspects
,usiness overview
?atest technology
3.,., SU66ESTIONS B1 THE RESEARCHER
The company should conduct effective training after the performance
appraisal for their employees to improve their performance and also 6F7
ratings should be discussed with the employees at the time of performance
appraisal review.
The company should give combination of both 9subjective and objective;
appraisal and it should be of half yearly.
The appraiser should #eep on contact with the employees and motivate
them for their growth and also to achieve the organizational goals.
0hen an employee is newly joined in an organisation, heEshe should be
given proper information about performance appraisal system and its
impact towards hisEher job.
>nce an employee is evaluated, heEshe has to be informed about their
strength and wea#nesses. -n employee should aware of the above,
heEshe will improve their strengths and wea#nesses and also it helps to
increase the productivity of the organisation.

3.( CONC.USION

%n this study, &erformance -ppraisal 5ystem followed at 5&-4 systems was
evaluated and found to be good. This project wor# also reveals the gaps in the existing
system. ,y providing suitable training and development programmes, the concern
organisation can improve the existing performance appraisal system.
>verall, this project wor# helps to understand every aspects of performance
appraisal system.


RE-ERENCES
I5& 7ao G =uman 7esource $anagement, -nurag Kain for excel boo#s, (5
ninth edition.
7. @othari " 7esearch $ethodology $ethods and Techni!ues, 4ew age
international publishing, second edition.
)onald 7 6ooper, &amela 5 5chindler G ,usiness 7esearch $ethods, Tata $6
8raw =ill, ninth edition.
&erformance management G $ichael -rmstrong and -ngela ,aron.
8ary )essler G =uman 7esource $anagement &rentice, =alf of %ndian private
limited (A ninth edition.
0ebsite ' www.spansystems.com
0ebsite ' www.google.com
APPENDIF
I"PACT O- PER-OR"ANCE APPRAISA. S1STE"
1. 4ame 9optional; ' OOOOOOOOOOOOOOOOOOO
(. 5ex ' a; $ale b; Female
.. Nour age groupP
a; 1: " (. b; (A " (B c; (: " .. d; .A G .B e; above .B
A. )esignation ' OOOOOOOOOOOOOOOOOOO
5. )ate of joining ' OOOOOOOOOOOOOOOOOOO
/. 0hose appraisal do you preferP
a; &eers
b; 5ubordinates
c; 5uperiors
D. &erformance appraisal should be based on your
a; Juality
b; Target
c; ,oth
B. The fre!uency of appraisal should be
a; $onthly
b; =alf yearly
c; -nnual
d; ./ degree
:. -ppraiser appraised your performance based on
a; &ersonality traits
b; ,ehavior
c; 7esults
d; -ll the above
1. 0hich type of performance appraisal do you preferP
a; 5ubjective performance appraisal
b; >bjective performance appraisal
c; 6ombination of both
11. ,ased on the gender, performance appraisal varies. NesE4o

T#e follo@ing :'es!ions are gra$e$ on a 3 poin! scale9
1 ? S!rongl agree
, ? Agree
( ? No commen!
2 ? Disagree
3 ? S!rongl $isagree
1 ( . A 5
1(. )uring appraisal, the appraiser had daily contact with you.
1.. )uring appraisal process, you are allowed to give feedbac#.


1A. )o you thin# the performance appraisal evaluates your strengths
and wea#nessesP

15. The appraiser exactly evaluated the s#ill gaps within you.

1/. The organization is providing effective training program for s#ill
enhancement after your appraisal period.
1D. &erformance appraisal helps in your personal growth.
1B. The appraisal system helps in your future promotion prospects.
1:. )o you recommend job rotation for your developmentP NesE4o

(. )o you recommend job enlargement for your developmentP NesE4o
(1. )o you have any ideas to recommend for your developmentP NesE4o
%f yes, &lease specifyOOOOOOOOOOOOOOOOOOOOOOOOOOO.
((. -t the time of appraisal documentation review, did you have face to NesE4o
face interaction with your appraiserP
(.. 0ere opportunities given to you to improve your performanceP NesE4o
(A. )oes the performance appraisal review actually change your NesE4o
attitude E behaviourP
(5. -re you satisfied with the critical factor ratingsP NesE4o
(/. ,ased on the performance ratings, is there any increase in the salaryP NesE4o
(D. -re you happy with the present appraisal systemP NesE4o
(B. )o you have any comments on existing performance appraisal in your
+nterprise. 5pecify your suggestions.


This survey is only for educational purpose. 5trict confidentiality will be maintained
and no details will ever be revealed to others.