PERFORMANCE SATISFACTION

APPRAISALS

AND

EVALUATION

OF

EMPLOYEE

P ro je ct S y no ps is Pro yn o p s

A STUDY ON DIFFERENT APPROACHES OF PERFORMANCE APPRAISALS: A SPECIFIC STUDY IN SOFTWARE INDUSTRY

Project Guide

Submitted By

PERFORMANCE SATISFACTION

APPRAISALS

AND

EVALUATION

OF

EMPLOYEE

Project Synopsis checklist
1. TITLE OF THE PROJECT ...............................................................................3 2. EXECUTIVE SUMMARY .................................................................................3 3. STATEMENT ABOUT THE PROBLEM ..............................................................4 4. RESEARCH METHODOLOGY ..........................................................................6 5. QUESTIONNAIRE .........................................................................................9 6. CHAPTERISATION SCHEME ........................................................................16 6.1. Introduction ..............................................................................................16 6.1.1 Background of the Study ............................................................................16 6.1.2 Introduction to the IT System?.......................................................................16 6.2. Research Design ........................................................................................17 6.3. Company profile ........................................................................................17 6.4. APPROACHES OF PERFORMANCE APPRAISAL ..............................................17 6.5. Conclusion .................................................................................................18 6.6. Bibliography & Annexure ............................................................................18 6.6.1 List of Tables .............................................................................................18 6.6.2 List of figures ............................................................................................18 6.6.3 Questionnaire ............................................................................................18 7. PERFORMA FOR SYNOPSIS OF PROJECT WORK ..........................................18 8. Guides Resume..........................................................................................19 (This Project Synopsis is submitted in partial fulfillment of the requirement of Master of Business Administration, Institute Of Management Technology Centre Distance Learning, Ghaziabad)

PERFORMANCE SATISFACTION

APPRAISALS

AND

EVALUATION

OF

EMPLOYEE

1. TITLE OF THE PROJECT
A STUDY ON DIFFERENT APPROACHES OF PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION: A SPECIFIC STUDY IN SOFTWARE AND COMMUNICATION INDUSTRY

2. EXECUTIVE SUMMARY
Performance appraisal is an important HRD mechanism. It is the process of evaluating the performance of employees in terms of the requirements of the job for which they are employed for administrative purpose, including suitable placement, selection, promotion, giving financial rewards and other action which require differential treatment between the members if a group as distinguished from actions affecting all the members equally. Earlier performance appraisal was considered as a simple and confidential method of rating the job performance of individual employees by their superiors for the purpose of giving those remarks and rewards. Early appraisal systems stressed assessment of personality tracts, which were difficult not only to measure but also to relate constructively to the job itself. The purpose of performance evaluation is to generate information to support administrative decisions. The difficulties in measuring performance in software companies like the performance evaluations are highly subjective. Goal setting is ineffective when goals are too simple, when goals of not constitute the goal job, when goal attainment is difficult to prove or measure, when performance is the result of term efforts, peer and subordinate rating not followed no incentive for performance, implementation of the appraisal system may not be as planned because of time constraint and span of reports. Over a period of time appraisal become a ritual. To address the above a study was conducted to study the different approaches of appraisals adopted by software companies. A sample of 30 software companies was taken. A structure questionnaire was administered to HR managers/ executives of different companies to elicit the information . Major findings of the study include the most common type of appraisal is the open system followed by MBO, a few companies followed 360 feedback while most of the companies are planning to implement this powerful new model for employee assessment and performance improvement. The positive areas/benefits of the appraisal system followed included training and development inputs, career planning, and objective I setting etc.

PERFORMANCE SATISFACTION

APPRAISALS

AND

EVALUATION

OF

EMPLOYEE

The criteria or measures to evaluate an employee in most of the companies are technical competence, performance, achievement vs. objectives, key result areas set at the beginning of a specific period, forming result oriented areas, leadership skills, team work, attitude are behavior oriented areas compensation increase is related to performance and depended on the performance code/rating give. Target is set for employee being appraised for a period of 6 months; checklist for carrying out appraisals and carrier planning is followed. 360° feedback process gives an all round perspective restricting the inconsistency factor that exist in traditional appraisal system. Organizations remove layers of management, flatten their structure, and begin using self-directed terms; the, only practical option for performance feedback is from multiple sources. As organization changes their culture to align with their vision and values, 360° feedbacks becomes an ideal choice to communicate the new competencies required by the new values.

3. STATEMENT ABOUT THE PROBLEM
The research intends to study the different approaches of appraisals adopted by software Companies and employee attitude, employee Satisfaction and industrial morale. It also analyses the most commonly occurring errors within performance appraisal methods and to understand the level of effectiveness of 360º appraisal in the industry 3.1 NEED AND IMPORTANCE OF THE STUDY

This study is conducted with respect to understanding the different appraisal systems conducted in the software industry and their effects thereafter in the same. Due to time and resource constraints, the study was restricted to the software industry in Delhi Region . 3.2 OBJECTIVES RESEARCH OF THE

1. To find out the different appraisal systems followed by software companies. 2. To find out who appraises the employees. 3. To analyze and study the benefits of the appraisal systems. 4. To analyze the shortcomings of the appraisal systems. 5. To identify the criteria and measures adopted to evaluate employee performance. 6. To find out the level of effectiveness of the 360 degree feedbacks. 3.3 REVIEW LITERATURE Purpos e OF

The research dimension of the related literature and the relevant information begins from an explanatory perspective. Overall about 77% are given a chance to respond with written comments on their appraisals. About 97% of large organizations have them. This analysis may reveal conclusions from past studies to realize the reliability of the secondary sources and their credibility. approaching towards specific studies which do related to the judge the limitations and informational gaps in data from the secondary sources. Only about 7% of the organizations use self-appraisal in any part of the overall appraisal process. However. 20% use essays. which is followed in companies to appraise performance: ( Phatak. company data or industry reports that serve as a foundation for the setup of study. About 62% of small organization use rating scales. In 69% of companies. Virtually all employees (99%) are informed of the results of their appraisals. appraisals are done annually. These appraisals are in turn reviewed by the appraiser’s supervisor in 74% of the responding organizations. International Dimensions of Management) Almost all software companies responding do have formal appraisal programs. This in turn enables one to rely on a comprehensive review for the study. Those using essays as the main appraisal technique usually require an overall quantitative performance rating to facilitate employee comparisons for compensation decisions. Rating scales are by far the most widely used appraisal technique. just over 23% use essays and about 17% use MBO. ANALYSIS STUDY OF PREVIOUS A survey about current practice. About 93% of smaller organizations (those with fewer than 500 employees) have such programs.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE The literature review section examines the importance of search studies. METHODS OF LITERATURE REVIEWING THE . those using ratings as the main appraisal technique typically also require narrative comments to justify rating and to describe employee strengths and weakness and document development plans. and about 19% use MBO. The employee’s immediate supervisor makes Ninety two percent of appraisals. 51% use rating scales. Among the large organizations.

and is crucial in both linking rewards to performance and providing a platform for the development of employees. Managers need to develop the skills of coping with such tensions in their roles. 4. The secondary sources were also relied on for additional information. With this the data received enables the researcher to accurately arrive at the problem of the study and the consecutively solutions to the same. It includes company journal. manuals etc. The primary sources that provide relevant information are the best form to retrieve data from the research. this problem is solved by having different managers carrying out performance and development appraisals. CONCLUSIO N Performance management lays an evaluative and developmental dimension to its makeup. Appraisal provides the context in which mangers can seek to ensure that there is acceptable congruency between the objectives of the individual and those of the organization . records. SAMPLE SIZE Data is collected using a sample of 30 software companies. The primary sources were encouraged with the help of distribution of questioners as well as conducting personal interviews. RESEARCH METHODOLOGY TYPE RCH OF RESEA The research design comprise of the plan and structure of investigation conceived so as to arrive at the responses to the research queries. as an appraiser. It there by addresses the aims and objectives of the study. newsletters. SAMPLE DESCRIPTION . SAMPLING TECHNIQUE The sampling technique adopted for the study is non-probability Random sampling technique according to the convenience of the researcher. Over concentration on the assessment of performance can work to the detriment of effort aimed at establishing the development needs of the individual in an open and honest way.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE The review of literature does scrutinize the important research studies. both descriptively and analytically. A questionnaire was administered to HR managers / executives of different software companies to obtain data for the purpose of analysis. In some organizations. may encounter difficulties in reconciling the roles of 'judge' and 'mentor'. The manager.

ACTUAL DATA COLLECTION OF Both secondary and primary sources of data are utilized for the purpose of this study. In the test of hypothesis it begins with an assumption or hypothesis is called Null Hypothesis. manuals and other sources of the HR Department. TOOLS USED FOR TESTING OF HYPOTHESIS In attempting to arrive at a decision about the population on the basis of the sample information it is necessary to make assumptions or guesses about the population parameters involved such an assumption is called statistical hypothesis. Primary data is collected by means of administering a questionnaire to the Human Resource Managers / Executives in different software companies. newsletters. Secondary data is collected from various records.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE The sample mainly consists of data from the primary sources that are utilized for the purpose of this study. TEST PROPORTION FOR . INSTRUMENTATION TECHNIQUE Questionnaire and structure disguised questions. which may or may not be true or not is called test of hypothesis or test of significance. hypothesis is Test for proportion. Secondary data like company journals. were also relied on for retrieving further information. Ho. This is done by means of administrating questioners to human resource managers / executives in different software companies in the city of Bangalore. Null hypothesis is usually denoted by the symbol. Any hypothesis that contradicts the Ho (null hypothesis) is called an The technique used to test the alternative hypothesis and is denoted by symbol H1. The null hypothesis asserts that there are no significant differences between the statistics and the population parameters and whatever observes difference is there merely due to fluctuations in sampling from the sample population. records etc.

let x units possess the attribute. And so. and the subsequent interpretation the researcher has adopted advanced version of MS-EXCEL 2000. hypothesis is H1: p P.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Suppose the population of an attribute in a population is now known. This application software has facilitated the researcher to construct the frequency table. we want to test whether the proportion is a given value P. if | Z | cal < Ho is accepted. By this automated data analysis it has minimized the researcher’s time constraint and reduced human errors and also accurate outlay of information. Then the sample proportion is p = x/n. The null hypothesis is Ho : p = P. The alternative The large random sample of size n from the population. various kinds of graphs and to find out the average responses from the sample. Z = p-P PQ n Therefore.On the other hand. Ho is rejected . OTHER SOFTWARE ANALYSIS USED FOR THE DATA For the data analysis. if | Z | cal > k. the test statistics is | Z | = P = assumed level of effectiveness Q = 1-P p = level of effectiveness of sample n = sample size For the sample. .

Disagree (D) 3. Second was designed for the HR of the specific software companies. The answers given by you will be kept confidential. Please assess the extent to which each statement describes you and your organization using the following five point rating scale. IDENTITY TASK . You are not required to write your name. SIGNIFICANCE TASK 12345 SD D I A SA 3. Please answer all the statements. You are requested to be honest and frank in your replies. Age : ______________________________________ in the present Experience organization: ___________ SECTION II (Job Itself): S. First has been designed to assess the job satisfaction level and morale of the employees in the organization.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE 5. HOW YOU FEEL ABOUT YOUR JOB? The questionnaire consists of nine sections. Indifferent (I) 4. QUESTIONNAIRE There were two questionnaire were designed. B. encircle the most appropriate rating. Strongly Agree (SA) SECTION I (Personal Details): 1. My performance on the task determines or influences performance of my colleagues also. 2.N O : A. 1. each section having a number of statements. Agree (A) 5. Strongly Disagree (SD) 2.

Promotions decisions are taken objectively. There is flexibility and freedom in the job that I do. Good performance is also considered in promotion decisions. 1 2 3 4 5 C. 1 2 3 4 5 . 12345 D. INTEREST WORK IN 12345 9. 1 2 3 4 5 8. 1 2 3 4 5 E. I am given independence in important decision-making. VARIETY SKILL 5. The organization believes in multi-skilling. 1 2 3 4 5 13. 1 2 3 4 5 6. 1 2 3 4 5 SECTION IV (Manag ement Responsiveness): S. I feel I can personally develop or grow in my job.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE 4. AUTONOMY 7. Most days I am enthusiastic about my work. 1 2 3 4 5 SD D I A SA / 12.N O GROWTH PROSPECTS PROMOTIONS 11. 1 2 3 4 5 SECTION III (Job Advancement/ Scope For Advancement): S. 1 2 3 4 5 14. I feel that the task(s) I perform need independent charge and cannot be clubbed with some other responsibility. I feel that my efforts are valued in the company. The company has satisfactory promotion policy. I am given an opportunity to develop my skills further to do my job in the organization. 10. RECOGNITION APPRECIATION AND SD D I A SA 15. My job is usually interesting enough to keep me from being bored.N O : A.

28. 12345 C. 12345 . There is a fairly clear-cut and detailed grievance handling mechanism in place in my organization. I can express frankly my feelings and reactions in the meetings and to my senior managers. Linkages of incentives with performance are clear. Compared with people in similar jobs in other companies. 12345 12345 12345 D. I will be recognized and appreciated when I will go beyond what is expected in my job. SECURITY 22. 12345 B.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE 16. In my understanding. FEEDBACK 17. 20. 25. 12345 E. It is my company’s express policy to proactively train people from a long term H. which enable me to improve my performance. HANDLING GRIEVANCE 12345 26. All incentive schemes are transparent. TRAINING LEARNING AND 12345 27 My company sends people for training when they need to learn new things related to their job profile. Benefits. Perk. I personally feel that monetary rewards alone are not sufficient to motivate me to work better. 19. MONETARY Compensation) BENEITS (Pay. I feel my pay is fair. 12345 12345 F. There is a significant component in my compensation package that is performance linked. I personally feel that my subordinates have to be given very clear directions to execute their work. My superiors involves me in the decision making process. G. 1 2 3 4 5 24.R development perspective. My supervisor(s) constantly provide me feedback. 12345 18. there is no threat to my job due to redundancy or any other reason. 21. PARTICIPATION MANAGEMENT / PARTICIPATIVE 23.

Culture S. 1 2 3 45 SECTION V (Working Groups & Culture): Factors included in this are: 1. 31. supervisory treatment. Teamwork 6. Support from coworkers 4. 12345 I. Mainly excellence in performance and getting tasks accomplished is rewarded.N O A. Cohesiveness 5. Supervisors try to use their expertise and competence rather than their formal authority in influencing subordinates. I am kept informed on what goes on here. SD D I A SA 12345 12345 12345 their B. SYSTEM COMMUNICATION 29. Supervision (Quality of supervision. My superior / boss gives me enough freedom to do things in my own way. 1 2 3 4 5 30. My company provides enough conducive environment – formally and informally – to work in teams. I feel that ‘we’ work as a team of mutually complementing individuals in our section / department. 37. support from supervisors. I am satisfied with the communication and the way information flows around in my organization. GROUPS WORKING 12345 36.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE H. Knowledge and expertise are recognized and rewarded here. competency of the supervisor) 2. 34. My boss provides me enough guidance about how I should perform my job well. SUPERVISION 33. 12345 . REWAR D 12345 32. Relationship with coworkers 3. 35.

I feel exhausted by the time I am through with my day’s work. 12345 SECTION VI (Status / Occupational Status): S. 1 2 3 4 5 39.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE 38. I don’t care about rank and job titles. Transportation physical S. Transportation to my workplace and back is comfortable experience : Because the company has good transportation facilities.N O : 40. Conditions of work. I have convenient working hours. 1 2 3 4 5 46. Provision of food 5. 45. My organization ensures that hierarchical differences are clearly discernible. I think my position should be reflected through various status symbols. 1 2 3 4 5 SD D I A SA 12345 . its what I am doing is important. In a typical day’s work : We get good lunch and other snacking items. Fatigue and monotony 4. People get along well with each other in my section. The people I work with are very friendly and supportive of one another. SD D I A SA 12345 12345 12345 SECTION VII (Working Environment): Factors included in this are: 1. 1 2 3 4 5 44. Working hours 3. environment 2. etc.N O 43. 41. 42.

How often are appraisals carried out in your organization? Quarterly Half Yearly Annually Others (Please Specify) . If yes. 1 2 3 4 5 48.N O : 47. Our company organizes lot of events like sports meet. Friends and associates. 12345 SD D I A SA SECTION IX (Organizational Commitment): S.N O : 49. Do you appraise an employee by an appraisal system? Yes No 2. family outings etc. what is the system of appraisal adopted by your company? 3. 50. My interaction with colleagues extends beyond office hours. I would be reluctant to change to another company. recreational activities. I think I can proudly tell the name of the organization I work for. Even if the company would reduce my salary because of financial problems. Participation in social activities 2. Of Organization the employees in the 1. SD D I A SA 12345 12345 QUESTIONNAIRE FOR HR Name of Organization: Designation : Total No.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE SECTION VIII (Social Relations): Factors included in this are:1. S.

is it integrated into the appraisal system you follow? Yes No 10. How is feedback given employees? Written Oral Detailed Summarized Self-Assessed Assessed to the Manager 8. Is compensation increase related to an appraisal in any way? Yes No 11. Do you follow a self-assessment of an employee? Yes No a) If yes. Do you obtain feedback on the person being appraised? Yes No 7. What are the criteria used in your company to evaluate an employee? Performance Customer Focus Technical Competence Attendance Target Vs. Does the appraiser set targets for an employee being appraised? Yes No . Do you share both positive and negative feedback with appraise in the same meeting? Yes No 9. Achievement Key Result Areas Quality of Output 3 Point Scale 5.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE 4. What is the rating system used in your company? Scoring Comments Both If scoring is it Alpha Numeric Both 6.

1. About 97% of large organizations have fewer them. Introduction This chapter would provide a short introduction of what is Performance Appraisal and the Background of the research and what would be divided on 3 basic chapters as mentioned below. conclusions Bibliography Annexure 6.1. 6.1.PERFORMANCE SATISFACTION If yes. ERP is one of the latest developments in software for business enterprise wide Resources which Planning (ERP) System is an integrated business management system of performance suggestions and and . CHAPTERISATION SCHEME The project would deliver the following topics: Introductio n Research design Company profile Approaches appraisal Findings. What would be the level of effectiveness of 360 score when implemented as a form of appraisal? Less than 20% 20% 35% 35% . Do you have a checklist for carrying out appraisals? Yes No 13.2 Introduction to the IT System? This chapter will have an elaborate description of Information Technology and ERP systems. About 93% of smaller organizations (those responding with than 500 employees) have such programs. 6. Almost all software the companies do have formal appraisal programs. period? for APPRAISALS AND EVALUATION OF EMPLOYEE what 3 Months 3-6 Months 6 Months 12 Months 12. Do you planning? follow Yes No career 14.1 Background of the Study This chapter would be designed in such a way to provide an overall scenario of the IT world and lateral shift of the Methods used and result observed.50% above 50% 6.

2 Need and importance of the study This study is conducted with respect to understanding the conducted in the software industry and their effects thereafter in the same different appraisal systems 6. organization all be benefited. 6.2." 6. 6.4 Review of literature The literature review section examines the importance of search studies. profile Research Company 6. with industry aggregate revenue for 2005-06 expected to reach US$ 28 billion.2.2.3.1.1 Statement of the problem It also analyses the most commonly occurring errors within performance appraisal methods and to understand the level of effectiveness of 360º appraisal in the industry 6.2. 6. The industry is forecast to grow more than fivefold over FY 1999-06.2. Design Research APPRAISALS AND EVALUATION OF EMPLOYEE The research intends to study the different approaches of appraisals adopted by software Companies .3. Industry Trends. APPROACHES APPRAISAL OF PERFORMANCE Analysis of data was done with the purpose of summarizing the collected data and organizing these a manner that they answer the research questions.5 Operational definitions of concepts A more comprehensive definition is.2. Indian IT industry The Indian IT-ITES industry is broadly categorized into IT services and software. “Performance appraisal is a formal structured system of measuring and evaluating an employee's job and how the employee can perform effectively in future so that the employee. 6. ITES-BPO and Hardware segments. company data or industry reports that serve as a foundation for the setup of study.6 Methodology 6.3 Objectives of the study To find out the different appraisal systems followed by software companies 6.2.4.2.3.PERFORMANCE SATISFACTION 6. at a CAGR of 28 percent. Percentage analysis was used for in such analysis . The industry continues to chart remarkable double-digit growth.

No . Conclusion At the end of the project report we can mention why an organization would and should use an Effective Performance Appraisals techniques and its key benefits. bar charts. 6.5.: 52102420 Address for Correspondence : BA/ 45 110052 Mobile No: B Phase 1 Ashok Vihar Delhi +919873253288 Major area of specialization in which project work is to be undertaken: Human Resources Questionnaire attached Resume attached Consent Guide Phone Guide of Project Guide : Yes : Yes letter of Project : Yes No.6.3 Questionnaire of & 7.6. Bibliography Annexure 6. of Project : 9990688283 August 14.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE of data and the results have been presented by way of pie charts. 2008 Date submission: of .2 List figures 6.1 List of Tables 6.6.6. with the help of SPSS packag e 6. PERFORMA FOR SYNOPSIS OF PROJECT WORK PROFORMA PROJECT FOR SYNOPSIS WORK OF Name : Amit Kursija Enrol.

Gurgaon ManagerHR Handling a team of seven HR professionals and overseeing all HR activities of the organization recruitment. Guides Resume As per the guidelines please find below the resume of Mr. without his approval and help this would not have been possible.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE 8.Designing of role competency matrix for each role in the o organization. audits (BS7799. Gwalior Time Post Graduate (1999) Higher Diploma in Software Engineering from Aptech. Ltd. CMMi) and compensation management etc. performance including management. organizational development. Fidelity National Information Services know as Second Foundation (Earlier India Pvt Ltd) 3. Networking. Internet Browsers) Windows 95/98/NT. C. Course from Jiwaji University.. C++. He also assisted me run this project within our organization and assisted to go get the data from the other software companies in delhi and NCR region. Rajiv Malhotra who has guided and helped me design the below project.NO ORGANISATION DESIGNATION DURATION 1. 4. SSAD.Office. Academic profile Master of Personnel Management & Industrial Relations 2 Years Full (MPM&IR). .Com from Jiwaji University. ISO27001. by suggesting HR skills and implementing innovative HR policies and initiatives. (MS -DOS. Delhi (Final Development Semester) Work Experience S. National Board (NDDB ) Deus Technology August 2006 to Till Date : Intersoft Data Labs Pvt. Oracle. (1999) B. o Documentation and release of the Human Resources Manual for the organization. people practices. D2k . (HDSE) MS. o Designed Developed and implemented People Management policies and processes after benchmarking with the best in the industry and as per company requirements. Intersoft Data Labs Pvt. o Identifying Key Result Areas for the processes annually with respect to business Operations with inputs from the business heads and monitoring the implementation of these. Dairy Development Manager-HR Aug 2006 – Till Date Assistant Manager-HR Aug 2005– Aug 2006 Deputy Manager-HR Aug 2004– Aug 2005 Senior ExecutiveHR Recruite r Nov 2002– July 2004 1999 – Nov Oct 2002 Key Responsibilities HR Strategy and processes o Contributing to HR strategy and ensuring that action plans are created and implemented to implement the strategy. To keep developing and be a part of a dynamic team and help the organization grow. Gwalior (1997) Pursuing Diploma in Training & from ISTD. Objectiv e To specialize in organization level Human Resource Planning and Development. Ltd 2. employee satisfaction.

Intelligence. open house. outsourcing and o Define induction. analysis and finalization of rewards . manpower requirements. Family Organizing Get. Monitoring and Maintaining of database on the basis for immediate future o Developing. on a quarterly bases to ensure a transparent culture and o Employee Satisfaction Index healthy environment. o Sharing information with the employees in different forums. Inventory Application Maintenance. processes and policies for selection. Counseling from time to time on behavioral attributes. Prepare / Update Monthly Manpower Report. Ensuring fulfillment to Internal Customer’s expectations on time. Performance Management a fair and transparent process of appraisal through feedback sessions with o Ensuring employees Human resource presence (where and necessary). o Manage Campus and Off Campus hire. Feedback Records. Appraiser evaluation. identifying development plans for employees conducting ensuring the appraisal process is closed with the time line. Chandigarh o August 2006 : Assistant HR Manager- Company Profile National Information Fidelity ( Limited ) . completion of joining formalities in terms of process steps and Ensure o Skill documentation. Corporate Social Responsibility . and performance friendly work atmosphere. Reviewer evaluation. than 650 employees. Data Validation. Training and Skill Development o Prepare/Maintain Annual Training Calendar. Employee Management & Organizational Development o Facilitation of OD Initiatives like compensation benchmarking. Goal Setting. o Define manpower recruitment plan. defusing conflicts. Self Appraisal.Blood Donation camps. Measuring Training Effectiveness and Training o Plan Analysis. Training Attendance. Computer literacy camps. E-Sat etc. Addressing employee issues and o o o concerns. specializes in of Business Security and Web Services solutions. o Ensuring effective HR Services deployment. Get-togethers (Monthly / Annual) like Fun Friday. participated in Implementation of Quality System for successful certification of o Actively BS7799. o Allocate resources to projects based on projections. Employee Day. It houses more Software . o Conceptualize and define systems & tools to support Resource Management. Performance Normalization meetings. Monthly sports competitions. building a congenial employees. o Taking care of entire employee engagement/retention/welfare. Post-Appraisal data mapping. Process compliance & Service delivery as per SLA. o Anchoring the employee help-desk. o Managing the overall Appraisal process – Policy Formulation & Clarification. 2005 to August Fidelity National Services Foundation Second Limited Information India Private ( Earlier know as ). ISO: 27001 & CMMi. communication / rollouts. o Conducting Exit interview and preparing Attrition Analysis as part of retention strategy. Services Earlier know Second Foundation India Private a leading provider as global software services. various Visits to NGO. and shortlist candidates for interviews with line o Interview managers. coaching employees / managers in writing effective appraisals. schedule the induction events in anticipation of the dates of joining of for and Individuals.togethers.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Define and implement strategies for recruitment & resource management and implement strategies for recruitment & resource o Define management. Philanthropy.

Celebrations. Grievance Handling etc o Manage exit formalities. suggestion schemes. Regular review of policies & process improvements. Generating feedback from the trainees with regard to the benefits drawn from the training. E-Sat (ESS). o Identification of behavioral and technical training o needs. o Designed Developed and implemented People Management policies and processes after benchmarking with the best in the industry and as per company requirements. Manage o Exercise. Defining the organization structure and career progression path. Monthly Events. (Job and Role Descriptions). and their Reference Check. o Documentation of policies & processes necessary for smooth implementation of policies. Training s o Organizing training programmes for existing employees and freshers hired through campus & off. Policy clarification for the HR and Resourcing team. Capacity Planning and Recruitment o Preparing and monitoring recruitment plan o Ensuring acquisition of the best talent through a process of recruitment tests and interviews. Campus and Off Campus hire and its o Plan for implementation. Complianc e o Shops Establishment o PF Compliance o Payroll o Contractual staff Mediclaim o Insurance and .campus . o Active interaction with Resourcing team for taking inputs on market trends and equip them with recruitment guidelines. Intranet etc. o Conduct Salary benchmarking exercises. o Improve communication of policies and benefits through Benefits campaigns. Timely response to queries on policies sessions and benefits . o Employee Engagement activities like Open House. o Organising Induction trainings for new hires. employee welfare and incentive schemes with respect to competitor’s vis-à-vis market intelligence. Background and employment o Sourcing talent verification. Goal Setting OD Initiatives o Facilitating healthy organizational culture by promoting open house discussions. Employee Events. Compensation Management o To gather and update information about the compensation/salary. Actively participated in Implementation of Quality System for successful certification of ISO: 9001:2000. o Defining various roles within the organization as well as skill required at each level. Performance Management in review and implementation of effective performance appraisal uniformly all o Assisted across organizationthe .PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Job Responsibilities Policies & Procedures the design and implementation of HR strategies in a high growth environment and o Drive also formulate comprehensive HR policies. analysis and finalize F&F settlement. Yoga Classes. Conduct exit interviews.

Fundamental to NDDB's efforts are cooperativeand the Anand Pattern of Cooperation. Issuance of Various Certificates i. Operation s o Responsible for personnel functions like joining. Other participative Forums. Delhi Executive HR (Nov 2002 to July Senior 2004) (Oct 1999 to Nov 2002) Oct 1999 to July 2004 Recruite r Job Responsibilities Recruitment & Selection o Organizing the entire recruitment process. . o Employee grievance handling. o Sourcing–Advertising. Service Certificates etc. Identification of training needs. Formulation of Organization Structure. of activity reports and o Generation analysis.e. Support Group and others as appropriate. NOC for Passport. o Implementing formal system of Internal Communication. NOC for Visa. : Deus Technology. Ltd. Generating feedback from the trainees with regard to the benefits drawn from the training. o Responsible for recruitments at all levels and spheres (National/Overseas) & Follow up.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE August 2004 to August 2005 : National Dairy Development Board (NDDB). Prepare and submit periodic. It houses more than 1500 principles employees. o Periodic Voluntary Medical Check-up (PVMC). support/inputs in context of problems arising during o Provide implementation. o Welfare activities for employees and their family o members. with All Department Heads regarding HR related Liaisoning matters. Referrals.ERP Implementation necessary actions for implementation of HRIS (ERP-Orion) o Undertake module. Full & Final Settlement. Job portals. timely responses to information requests from operating groups.Interaction meeting with Unions. Permission for Higher Studies. generates and distributes a variety of reports and statistical summaries. Separation. o Provide accurate. o Maintaining targets & quality. Job Responsibilities Human Resource Information System (HRIS). Residence Proof. Consultants. o Devising etc. screening. Internet researching Getting References etc. LTA. o Organizing training programmes for Officers & Staff. Head hunting. Performance Management the Appraisals of the employees. Verification. Anand (Gujarat ) Deputy ManagerHR Company Profile The NDDB is a Public Financial Institute and was created to promote. o Assisted in Six Monthly & Annual Performance Feedback. finance and support producer-owned and controlled organizations. purposes. Scheduling & Coordinating for further o Initial Interviews. cold calling. recurring activity & status reports to superiors Training & Development an Induction Intersoft Data Labs Pvt. Reference o Offer Negotiations Checking. Compensation. etc. Training/VisitsProposals to MD for approval for various other Abroad. o Design. Initiation appraisal forms and follow-up for o Process timely receipt of the same. o Continually monitor HR/Client information needs and design new/modify existing system to meet changing requirements.

PF. 1 Day Apr 12. o Student Member of Indian Society for Training & Development (ISTD). Relieving Letter. City Centre. Gratuity. Bonus. o Introduced Suggestion Box and Movement Register in the organization. Maintaining Discipline Maintenance of harmonious of Relation. Payroll Management o Responsible for preparing Salary statement every month with all necessary deduction and timely o disbursement . compliance.and regularly updating the HR o Design manual.Offer Letters.t. Shops & Establishment Act. Training to Resource o Induction o o Executives. Probation reports. General administration activities-Telephone/Fax. Confirmations. Employees Communication. Oppo site BSNL Building. Gwalior (M. 2007 Business Communication FIS (Second Foundation) 2 Days May 12-13. Tulsi Vihar. PF. Chapter. Ensure compliances w. and Experience Letter. o Issue etc. 1964/20 17th Jan. Verify credentials if required through verification process. Full & Final preparation. Organisation Training Details Delhi Training/Membership Organisation Duration Date Training on Metrics Intersoft Data Labs Pvt. Library Management. Ltd. Delhi Chapter. Warning Letters. Exit Interviews. Operation s o Attendance & Leave Management. Half Day May 28. o Providing salary statement and monthly report to accounts department on a monthly basis.P)474011. 2007 Introduction to CMMi Intersoft Data Labs Pvt. Confirm / Extension / Termination. A ppointment Letters.r. o Drafting of Increment and Salary Certificate Letter. 2006 Management NDDB 1 Day Jan Stress 2005 Training On ESI. etc.PERFORMANCE SATISFACTION o APPRAISALS AND EVALUATION OF EMPLOYEE Induction. ATC Infotech (P) Ltd 1 Month April-May 2000 Gratuit y Personnel Functions (OJT) Flex Industries Ltd 3 Months 1999 Grievance Handling (ST) 1998 Personal Details Date Of Birth Permanent Contact Addres s Phone Passport No Driving License No. o Performance evaluation and compilation and finalization of rewards. Trainings. o Issue promotion / increment letter as applicable. 1977 ‘Bhardwaj Sadan’. Ltd. etc. Professional Details Memberships o Individual Life Member of National HRD Network (NHRDN). 0751Y223876 A853938 0 HTC Ltd 2 Months . o Organizing employees get-togethers and parties to celebrate the special occasions. Statutory Performance Appraisal o To organize Appraisals as per the policy and to Ensure Appraisals are done and are in order. Employees Database Management etc. Hotel & Travel Arrangement.

. finance. from mere data storage to more advanced software packages like ERP which can do many things in an organization but fortunately. which wishes to work with ERP. There is hardly any organization which has not installed at least one ubiquitous computer. It is well to remember that IT is one more tool in hands of a management to get things better and faster. First of all the people ho handle such a package must be qualified and must posses relevant work experience in the functional module. An organization.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE 1. Thus ushering in a new "IT culture" remains one of the greatest challenges for any management interested in adapting IT as a tool in as many functions of the organization as possible. accounts. One of the toughest things to overcome is the attitude of the people for adapting to a change. ERP which is one of the latest developments in software for business enterprise wide Resources Planning (ERP) System is an integrated business management system which covers some important aspects of business such as logistics. Example of IT application. human resources. But it is equally important to understand and appreciate the flip side of such sophisticated IT packages like ERP. planning. There should be enough number of terminals for concerned people to key in data or run a query. production. Thus an ERP system package claims to aid a business to manage it activates dynamic and integrated manner. Applications of computers in various function is common these days. an ERP system tracks materials.from a simple PC to sophisticated network of computers. must have already had experience with proper working IT infrastructure.1 Background of the Study Information technology (IT) revolutionized many aspects of a business. which a person wants to get trained. cannot substitute common sense or human ingenuity. materials and warehouse management. capacity and labor resources. There is a wide choice for computer users . Right from the receipt of an inventory.

develop alternate vendor or import. 2. Such a procedure may or may not guarantee success. Thus the IT most understands their role vis-à-vis decision-making. an organization's urgent need may be to change existing technology to an upgraded one. For example. A responsible management will put the IT in its place to serve the overall business interests. An ERP package obviously. In the enthusiasm to appear very modern and up-to date a management may go in for IT package when the ground reality within the organization is not conductive to such a drastic change. But now it is up to the management to initiate corrective measures.1 Statement of the Problem . Some IT experts urge an organization to implement a total IT system such as ERP-a classic case of all or bust.visit vendor to assist him to come up to standard. won't tell the management to do just that. Just because a sophisticated IT package has been installed in an organization cannot guarantee success . the information system will tell the management of such a fact faster. Some cautious management would like to implement information system module by module to gain experience.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE The vital role of IT is to support a management and not control it. On the other hand a few well-tried techniques do wonders for an organization. a vendor is supplying poor quality supplies consistently. a few time -honored principles like "do it right at the first time" must be followed in an organization with or without a sophisticated IT tools. Also.If for example.

To identify the criteria and measures adopted to evaluate employee performance. Due to time and resource constraints. To find out the level of effectiveness of the 360 degree feedbacks. 2. It also analyses the most commonly occurring errors within performance appraisal methods and to understand the level of effectiveness of 360º appraisal in the industry 2. the study was restricted to the software industry in Bangalore City. To find out who appraises the employees. . 3. To find out the different appraisal systems followed by software companies. 4. To analyze the shortcomings of the appraisal systems.2 Need and Importance of the Study This study is conducted with respect to understanding the different appraisal systems conducted in the software industry and their effects thereafter in the same.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE The research intends to study the different approaches of appraisals adopted by software Companies. 5.3 Objectives of the Research 1. 2. 6. To analyze and study the benefits of the appraisal systems.

those using ratings as the main appraisal technique typically also require narrative comments to justify rating and to describe employee strengths and weakness and document development plans.4 Review Of Literature Purpose The literature review section examines the importance of search studies. approaching towards specific studies which do related to the judge the limitations and informational gaps in data from the secondary sources. About 93% of smaller organizations (those with fewer than 500 employees) have such programs. About 97% of large organizations have them. company data or industr y reports that serve as a foundation for the setup of study. just over 23% use essays and about 17% use MBO. which is followed in companies to appraise performance: ( Phatak.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE 2. However. Rating scales are by far the most widely used appraisal technique. This analysis may reveal conclusions from past studies to realize the reliability of the secondary sources and their credibility. Those using essays as the main appraisal . 51% use rating scales. 20% use essays. About 62% of small organization use rating scales. International Dimensions of Management) Almost all software companies responding do have formal appraisal programs. and about 19% use MBO. Analysis of previous study A survey about current practice. Among the large organizations. This in turn enables one to rely on a comprehensive review for the study. The research dimension of the related literature and the relevant information begins from an explanatory perspective.

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technique usually require an overall quantitative performance rating to facilitate employee comparisons for compensation decisions. The employee’s immediate supervisor makes Ninety two percent of appraisals. These appraisals are in turn reviewed by the appraiser’s supervisor in 74% of the responding organizations.Only about 7% of the organizations use self-appraisal in any part of the overall appraisal process.Virtually all employees (99%) are informed of the results of their appraisals. Overall about 77% are given a chance to respond with written comments on their appraisals. In 69% of companies, appraisals are done annually.

Methods of reviewing the literature
The review of literature does scrutinize the important research studies. The primary sources that provide relevant information are the best form to retrieve data from the research. The primary sources were encouraged with the help of distribution of questioners as well as conducting personal interviews. With this the data received enables the researcher to accurately arrive at the problem of the study and the consecutively solutions to the same. The secondary sources were also relied on for additional information. It includes company journal, newsletters, records, manuals etc.

Conclusion
Performance management lays an evaluative and developmental dimension to its makeup, and is crucial in both linking rewards to performance and providing a platform for the development of employees. Over concentration on the assessment of performance can work to the detriment of effort aimed at establishing the development needs of the individual in an open and honest way. The manager, as an appraiser, may encounter difficulties in reconciling the roles of 'judge' and 'mentor'. Managers need to develop the skills of coping with such tensions in their roles. In some organizations, this problem is solved by having different managers carrying out performance and development appraisals. Appraisal provides the context in which mangers can seek to ensure that there is acceptable congruency between the objectives of the individual and those of the organization.

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Although one recognizes the part played by performance management in the determination of rewards, we believe that if treated as a way of providing feedback on progress and of jointly agreeing the next set of aims, the appraisal can have a positive effect on individual motivation.

2.5 Operational Definition of Concepts

Performance Appraisal

Performance appraisal is the assessment of an individual's performance in an performance in a systematic way, the performance being measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility etc. assessment should not be confined to the past performance alone. Potentials of the employee for the future performance must also be assessed. Performance appraisal can be defined as "the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development". A more comprehensive definition is, “Performance appraisal is a formal structured system of measuring and evaluating an employee's job and how the employee can perform effectively in future so that the employee, organization all be benefited."

Performance appraisal, to common understanding, is the formal and informal assessment of the performance of the employee at work. In an informal system we are aware that superior is continually making judgments about their subordinates' performance on a subjective basis. By contrast, superiors could resort to using formalized appraisal techniques when assessing the performance of subordinate, and these judgments arc considered to be more objective. In formalized systems the terms 'performance appraisal and 'performance management' are used. Both refer to a process where by mangers and their subordinates share understanding about what has to be accomplished, and the manager will naturally be concerned about how best bring about those accomplishments by adept management and development of people in short and long terms. Also, performance would be measured using

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the techniques discussed in this chapter and it will be subsequently related to targets or plans. In this way the subordinate receives feedback on his or her progress.

A distinguished feature of performance management is its integrating strength in aligning various processes with corporate objectives: for example, the introduction of performancerelated payment system and mobilization for training and development resources to achieve corporate objectives.

Measuring Performance
In many organizations, the feedback on job performance is ambiguous or is given annually as a ritualistic exercise. Many subordinates therefore have trouble in gasping how their efforts are perceived by the organization. Almost every one who has worked at a job can remember times when they were unclear on how their performance was being judged. The annual performance appraisal system tends to serve only a little purpose: salary administration, training and succession planning. But this is not the sole objective of performance appraisal. These objectives will only dilute and weaken the clarity and validity of any appraisal system. Most organization ties the formal appraisal system directly to salary increase, which decrease their validity.

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It is therefore very important for organizations to: (a) Link Salary and Status Realistically to the Performance Appraisals Most personnel departments have a ver y narrow outlook to appraisals. The general view is to receive the appraisal forms at a date (which usually is the deadline), issue instructions regarding increments and promotions, receive the data regarding the same and they issue letters to the concerned employee informing of their salary increase. The appraisal process gets polluted as the appraiser and appraise have at the back of their minds promotion and salary increase, rather than performance plans and participative reviews. This dilutes the objectives of appraisal to great extent. In fact, if organizations create, a culture of continuous feedback on the performance they would be making the appraisal system more relevant. Several organizations have already started delinking performance appraisal from salary increase.

(b) Making Objectives of Performance Appraisals Clear to All Employees If performance appraisal should not directly be linked to salary increase the question then arises, what should the objectives of performance appraisals be that could be realistically achieved? Some suggestions: To do joint goal setting, and link the goals to the organizational objectives To provide role clarity by defining Key Result areas for Accounting. To establish a level of performance in the current job and seek ways of improving it. To identify potential for development and to support the total process of planning To increase communication between the appraiser and the appraise. To identify factors that facilitate performance and other factors that hinder performance. To help the employees identify and recognize their own strengths and weaknesses. To make them assess their own competencies and how the same can be multiplied and improved. To generate data about the employee for various decisions like transfers, rewards, job-rotation, etc.

lies to be linked to long-term development activity and carrier planning. but the total frame work for the individuals development. Vision. Thus. Any good appraisal system should focus on developmental appraisal. competencies and abilities. improvement in job and level of competence and preparing employees for future jobs. but also monitors the process of growth and development.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE (c) Focus on Developmental Appraisals Managers should develop part ownership in the employee's future. appraisal of people. together with the inputs that are required to develop a high level of competence by individuals. The best way to do it is to let them appraise their own performance. . which is a part of the total HRD system. Organizations have to show vision for the future. (d) Let Employees Appraise Their Own Performance Subordinates need feedback more often on their performance. Developmental appraisal mean that an or ganization needs to develop not just isolated performance appraisal tool/system. The appraisal as a tool not only gives the individual and the organization the idea of where the individual stands in terms of his skills. The immediate rewards and recognition do not lead to enduring performance and upgrading of competence and therefore are not real motivators. strategies and objectives will give rise to individual objectives and performance standards.

training. establishing higher expectations. After self-appraisal. 3) Reduce ambiguity in performance and focus on change in job behavior. the subordinate discusses the ratings with his/her direct report or superior to get a feed back on performance. . projecting the future. When subordinates undertake self-appraisal. communication. Each individual may rate himself or herself. delegation and decision-making. (e) Create a Climate for Open Appraisals in Organizations In most organizations. and selling the top management on the upgrading process and developing an action plan. planning. raising performance goals is essential. and his/her signature is then obtained. Both then come to an agreement in areas of convergence and draw a job improvement plan.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Self-appraisal would 1) Motivate the employee to take more responsibility for his/her own performance. the concept of open appraisal is misunderstood. (f) Muscle Builds the Organization In today's competitive world. Self-appraisal may focus on cost control. 2) Focus on the job behavior only. This entails analyzing the company's current situation. identify the areas of improvement and work towards it. What it does mean that both the appraiser and the appraise share their views on performance with each other. One of the objectives of open communication between the appraiser and the appraise is to bring them together to solve organizational problems and performance related problems. The quality of ratings is likely to improve if there is shared understanding between the appraiser and the appraise. they analyze their job duties and how key issues in a job they handle. Open appraisal does nut mean that the appraisal ratings are shown by the subordinate.

As conditions change. (g) Build Commitment in the Workplace Change is an inevitable part of manager's job. jobs are designed to be broader than before. the workplace. individual responsibilities are also expected to change. We have to see our way to the various changes in environment that are taking place and those changes that will revolutionize our organization culture in the out coming years. METHODS APPRAISAL OR TECHNIQUES OF Broadly all the approaches to appraisal can be classified into: a) Past Oriented Methods and b) Future – Oriented Method . 4) Developing multiple skills and competencies by worshiping success and potential. Managers have to stop being my topic to performance appraisals. No personnel professional in the 90's will be able to afford the luxury of myopia. The performance expectations are high and emphasize continuous important in the workplace.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Muscle builds the organization by 1) Enhancing your own performance 2) Accelerating the professional growth of the best performers 3) Not tolerating managerial performers. team accountability is as important as individual accountability for performance. unless marginal performers are replaced. In commitment-based approach. One cannot muscle build the organization. by recognizing and rewarding performance. We must help our organization's triumphant progress through the 90s.

attendance. Depending on the number of ‘Yes’ the total score is arrived at. there would be certain statements mentioned and the appraiser will only have to select the appropriate statement that suits the appraise. The rater checks the appropriate performance level on each criterion. the technique becomes a weighed checklist. and the like. Each scale ranges from excellent to poor. each representing a job-related performance criterion such as dependability. attitude. After ticking off against each item. He only has a few statements that he will have to select that suit the appraise. The HR department assigns certain points to each ‘Yes’ ticked. the rater only does the reporting. In other words. a checklist of statements on the traits of the employee and his or her job is prepared in two columns – viz. output.. the rater forwards the list to the HR department where the actual assessment of the employee takes place.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE a) Past Oriented Methods Rating Scales This is the simplest and most popular technique for appraising employee performance. and then computes the employee’s total numerical score. This is called as Forced Choice Method because here. The number of points scored may be linked to salary increases etc. while actual evaluation is done by the HR department. The list is then forwarded to the HR Department who will do the assessment. All that the rater should do is to tick the ‘Yes’ column if the statement is positive and in column ‘No’ if the answer is negative. co-operation. Forced Choice Method Here. the appraiser has no freedom at all. Forced Distribution Method One of the errors in rating is leniency – clustering a large number of employees around a high point on a rating scale. The forced distribution method seeks to . The typical rating scale system consists of several numerical scales. a ‘Yes’ column and a ‘No’ column. Checklist Under this method. When points are allotted to the checklist. initiative. There will be points given to each of the individual statements.

One merit of this approach is that it seeks to eliminate the error of leniency. The method operates under an assumption that the employee performance level conforms to a normal statistical distribution. One of the advantages of this method is that the evaluation is based on actual job behavior. average 40% below average 20% and unsatisfactory 10%. the use of forced distribution approach would be unrealistic as well as possibly destructive to the employee morale. For example. In organizations that have done a good job of selecting and retaining only the good performers. It reduces bias on the part of the raters.excellent 10%. Giving job – related feedback to the rate is also easy. the following distribution might be assumed to exist .PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE overcome the problem by compelling the rater to distribute the rates on all points on the rating scale. Generally. This technique is however not acceptable by most of the rates and rates. c) Overly close supervision may result. This approach focuses on certain critical behaviors of an employee that make all the differences between effective and non-effective performance of a job. These include: a) Negative incidents tend to get noticed more than positive incidents. good 20%. The major weakness of the forced distribution method lies in the assumption that employee performance levels always conform to a normal (or some other) distribution. Such incidents are recorded by the superiors as and when they occur. b) Recording is a chore. the approach has descriptions in support of particular ratings of an employee. Critical Incidents Method This method of employee assessment has generated a lot of interest these days. it is assumed that employee performance levels conform to a bell – shaped curve. so supervisor could easily forget. Further. The method however has significant limitations. Behaviorally Anchored Rating Scales (BARS) .

which subordinates could use to improve performance. . Further BARS help to overcome rating errors. BARS were developed to provide results. this method too suffers from distortions inherent in most rating techniques. All dimensions of performances to be evaluated are based on observable behaviors and are relevant to the job being evaluated since BARS are tailor made for the job. 4. represent specific levels of performance. Since the raters who will actually use the scales are actively involved in the development process. They are said to be behaviorally anchored in that the scales represent a range of descriptive statements of behavior on each scale best described and employee’s performance. they are more likely to be committed to the final product. 3. The scales are anchored by descriptions of actual job behavior that. Unfortunately. The result is a set of rating scales in which both dimensions and anchors are precisely defined.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Behaviorally anchored rating scales. Behaviorally anchored rating scales (BARS) have the following features: 1. sometimes called as Behavioral Expectation Scales are rating scales whose scale points are determined by statements of effective and ineffective behaviors. Areas of performance to be evaluated are identified and defined by the people who will use the scales. Superiors would feel comfortable to give feedback to the rates. supervisors agree. 2.

The raters overall impression of the employee’s performance. reflects a management philosophy which values and utilized employee contributions. b) Future Oriented Method Management by Objectives (MBO) The concept of MBO conceived by Peter F. Although. Drunker. the rater must describe the employee within a number of broad categories such as. The training and development assistance required by the employee. what has been done and what remains to be done. The second step involves setting the performance standard for the subordinates in a previously arranged time period. 1. . The working of MBO can be described in four steps: The first step is to establish the goals each person is to attain. It is extremely useful in filing information gaps about the employees that often occur in the better-structured checklist method. Cost Accounting Method This method evaluates performance from the monetary returns the employee yields to his or her organization. As subordinates perform. The strengths and weakness of the employee 5. this method might be used individually. it is most frequently used in combination with others. These goals can be used to evaluate employee performance. A relationship is established between the cost included in keeping the employee and the benefit the organization derives from him or her.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Essay Method Here. they know fairly well what there is to do. The jobs that the employee is now qualified or capable to perform 4. Performance of the employee is then evaluated based on the established relationship between the cost and the benefit. The promotability of the employee 3. 2. Applications of MBO in the field of performance appraisals are a recent thinking.

emotional. the actual level of goal attainment is compared with the goals agreed upon. The evaluation by the psychologist may be for a specific job opening for which the person is being considered. placement and development decisions may be made to shape the person’s career. In fact. or it may be a global assessment for his or her future potential. 360 Degree Appraisal This is a technique of appraisals wherein multiple rates are involved in evaluating performance. discussions with superiors and a review of other evaluations. they assess an individual’s future potential and not past performance. For an employees development multi-source feedback is very useful as it enables the employee to compare his or her perceptions of self with the perceptions of others. It also alerts the superior to conditions in the organization that may affect a subordinate but over which the subordinate has no control. The appraisal normally consists of in-depth interviews. When psychologists are used for evaluations. The final step involves establishing new goals and possibly. motivational and other related characteristics that suggest individual potential and my predict future performance. In addition. The evaluator explores reasons for the goals that were not met and for the goals that were exceeded. From these evaluations. peers and self.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE The third step. anyone who has any information on ‘how an employee does the job’ may be one of the appraisers. This is understood as a systematic collection of performance data on an individual or group. customers. Psychological Appraisals Large organizations employ full time industrial psychologists. new strategies for goals not previously attained. psychological tests. . team members. This provides a broader perspective about an employee’s performance. The psychologist then writes an evaluation of the employee’s intellectual. This step helps determine possible training needs. the technique provides for greater self-development of the employees. derived from a number of stakeholders – the stakeholders being the immediate supervisors.

360° feedback has been defined by Ward (1995) as: The systematic collection and feedback of 360-DEGREE FEEDBACK – METHODOLOGY 1. with the minimum of effort and in a way that facilitates graphical as well as numerical presentation. 360° feedback is also referred to as multi-source assessment or multi-rater feedback. This enables the data collection and analysis to be completed swiftly.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE 360-DEGREE FEEDBACK DEFINED 360° feedback is a relatively new feature of performance management. The dimensions may broadly refer to leadership. performance data on an individual or group derived from a number of stakeholders on their performance. provided by external suppliers. which measure from different perspectives the behaviors of individuals against a list of competencies. The data is usually fed back in the form of ratings against various performance dimensions. as in the questionnaire. The competence model may be developed within the organization or the competency headings may be provided by the supplier of the questionnaire. which asks those completing it to rate the importance of each item on a scale of 1 (not important) to 6 (essential) and performance on a scale of 1 (weak in this area) to 6 (outstanding). 2. The Questionnaire 360° feedback processes usually obtain data from questionnaires. . management and approaches to work. This may refer both to importance and performance. Ratings Ratings are given by the generators of the feedback on a scale against each heading. most commonly. 3. Data Processing Questionnaires are normally processed with the help of software developed within the organization or.

the more likely is the source of feedback to be revealed. it can be discussed in a performance review meeting so that joint plans can be made.e. i. Action The action generated by the feedback will depend on the purposes of the process. and there is much to be said for adopting this approach. development. 5. but the planning process may be shared between individuals and their managers if they both have access to the information. the action may be left to individuals as part of their personal development plans. Some organizations do not arrange for feedback to be anonymous. Whether or not feedback is anonymous depends on the organization’s culture – the more open the culture.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE 4. Even if the data only goes to the individual. Feedback The feedback is often anonymous and may be presented to the individual (most commonly) to the individual’s manager (less common) or to both the individual and the manager. appraisal or pay. If the purpose is primarily developmental. .

PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE 360-Degree Feedback – Advantages and Disadvantages Individuals get a broader perspective of how they are perceived by others than previously possible. Perception of feedback as more valid and objective. Forced line managers to discuss development issues. More reliable feedback to senior managers about their performance. Opens up feedback and gives people a more rounded view of performance than they had previously. as measured through out employee opinion survey Focused agenda for development. Provided a clearer picture to senior management of individual’s real worth (although there tended to be some ‘halo’ – effect syndromes). Gaining acceptance of the principle of multiple stakeholders as a measure of performance. Encouraging more open feedback – new insights. leading to acceptance of results and actions required. Increased awareness of and relevance of competencies Increased awareness by senior management that they too have development needs. a department and the organization as a whole. Reinforcing the desired competencies of the business. A rounded view of an individuals / teams / the organization performance and what its strength and weakness are It has raised the self awareness of people managers of how they personally impact upon others – positively and negatively It is supporting a climate of continuous improvement It is starting to improve the climate / morale. But there may be problems. These include: . Identify strengths that can be used to the best advantage of the business. Identifying key development areas for the individual. Clarified to employee’s critical performance aspects.

Lack of action following feedback. Over-reliance on technology Too much bureaucracy These can all be minimized if not avoided completely by careful design.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE People not giving frank honest feedback. Comprehensive and well-delivered communication and training programs are followed. Items covered in the questionnaire can be related to actual events experienced by the individual. Questionnaire items fit or reflect typical and significant aspects of behavior. People being put under stress in receiving or giving feedback. and an understanding of the benefits to individuals as well as the organization. training and follow-up. communication. . There is commitment everywhere else to the process based on briefing. It has the active support of top management who themselves take part in giving and receiving feedback and encourage everyone else to do the same. 360-DEGREE FEEDBACK – CRITERIA FOR SUCCESS 360-Degree is most likely to be successful when. There is a real determination by all concerned to use feedback data as the basis for development. training.

he could tend to give absolutely low scores for the appraise. most of the rates are clustered in the middle. Error of Central Tendency: This refers to the tendency of not using extreme scale scores on the judgment scale. 1. Error of Leniency: This is caused by the tendency of the lenient rater to put most of the rates on the higher side of the scale. 4. Personal Bias: This error occurs when there exists a close relationship between the appraiser and the appraise. This tends to influence the evaluation. Halo Effect: In other words. the same could happen vice versa too if an appraiser does not share a good relationship with the appraise. ill – defined and involved personal reactions. This usually arises when traits are unfamiliar. Therefore. the scores given could tend to be higher then what the appraise deserves. 2.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE APPRAISAL ERRORS None of the methods for appraising performance is absolutely valid or reliable. 5. it is tendency to allow the assessment on one trait to influence assessment on others. This would give the appraise an undue advantage for the appraise during the times of promotions. pay rise etc. No Consultation . The scores could be on the higher when there would be a bias on the side of the appraiser. Error in Unreliability: This error occurs when there is the existence of inconsistency in the evaluations of a group of employees by two / more appraisers. Let us try to understand the most commonly occurring errors within performance appraisal methods. each method has its own strengths and weakness. 5. 3. while a tough rater places them on the lower side of the scale.

A questionnaire was administered to HR managers / executives of different software companies to obtain data for the purpose of analysis. . and under rating employees in lower level job at job held in low esteem. Spill over Effect This refers to allowing past performance appraisal ratings to unjustifiably influence current ratings.6 Research methodology Type of Research The research design comprise of the plan and structure of investigation conceived so as to arrive at the responses to the research queries. 7. 6. Status Effect: It refers to over rating of employed in higher level job or jobs held in high esteem. If the appraise would not be given his say in the matter.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE There would tend to be an error in the scores if the appraiser just goes on giving scores without discussing with the appraise. 2. Sampling Technique The sampling technique adopted for the study is non-probability Random sampling technique according to the convenience of the researcher. It there by addresses the aims and objectives of the study. the score will not reflect the actual capability of the appraise. both descriptively and analytically.

were also relied on for retrieving further information. This is done by means of administrating questioners to human resource managers / executives in different software companies in the city of Bangalore. hypothesis is Test for proportion. Secondary data like company journals. Actual Collection of Data Both secondary and primary sources of data are utilized for the purpose of this study. which may or may not be true or not is called test of hypothesis or test of significance. In the test of hypothesis it begins with an assumption or hypothesis is called Null Hypothesis. manuals and other sources of the HR Department. Any hypothesis that contradicts the Ho (null hypothesis) is called an alternative hypothesis and is denoted by symbol H1. Tools used for testing of hypothesis In attempting to arrive at a decision about the population on the basis of the sample information it is necessary to make assumptions or guesses about the population parameters involved such an assumption is called statistical hypothesis. Ho. Sample Description The sample mainly consists of data from the primary sources that are utilized for the purpose of this study. Secondary data is collected from various records. newsletters. records etc. The technique used to test the . The null hypothesis asserts that there are no significant differences between the statistics and the population parameters and whatever observes difference is there merely due to fluctuations in sampling from the sample population. Primary data is collected by means of administering a questionnaire to the Human Resource Managers / Executives in different software companies.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Sample Size Data is collected using a sample of 30 software companies. Instrumentation Technique Questionnaire and structure disguised questions. Null hypothesis is usually denoted by the symbol.

let x units possess the attribute. The alternative hypothesis is H1: p P. various kinds of graphs and to find out the average responses from the sample. and the subsequent interpretation the researcher has adopted advanced version of MS-EXCEL 2000. Ho is rejected . PROFILE OF SOFTWARE INDUSTRY SOFTWARE INDUSTRY . if | Z | cal < Ho is accepted.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Test for Proportion Suppose the population of an attribute in a population is now known. And so. Z = p-P PQ n Therefore. Other Software used for the data analysis For the data analysis. The null hypothesis is Ho : p = P.On the other hand. we want to test whether the proportion is a given value P. This application software has facilitated the researcher to construct the frequency table. Then the sample proportion is p = x/n. The large random sample of size n from the population. By this automated data analysis it has minimized the researcher’s time constraint and reduced human errors and also accurate outlay of information. the test statistics is | Z | = P = assumed level of effectiveness Q = 1-P p = level of effectiveness of sample n = sample size For the sample. if | Z | cal > k.

with revenues reaching US$ 8. Indian IT-ITES vendors successfully executed the offshor e delivery model to achieve sustained growth in service exports and established India as the most preferred offshore destination for global sourcing of services.8 percent and 28.2 billion (a growth of 30 percent over previous year).1 Indian IT . with this segment receiving a boost owing to market conditions. The industry is forecast to grow more than fivefold over FY 1999-06. the situation is expected to change in the medium term. at a CAGR of 19. software and services. and ITES-BPO would continue to remain the key contributors to India’s IT-ITES export revenues. Hardware and IT services accounted for around .7 percent) in 2005-06. While contribution of hardware exports would be around 3.2 per cent for the 2004-05 periods. with industry aggregate revenue for 2005-06 expected to reach US$ 28 billion.3 billion (61. at a CAGR of 28 percent. o During 2005-06. respectively.ITES Industry: The Indian IT-ITES industry is broadly categorized into IT services and software.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE 3. The industry continues to chart remarkable double-digit growth. o o Indian IT-ITES vendors successfully executed the offshore delivery model to achieve sustained growth in service exports and established India as the most preferred offshore destination for global sourcing of services.9 percent of total industry revenues) in 2004-05 and is expected to touch US$ 17. with a share of 67. The domestic IT-ITES market witnessed a revival during 2004-05.9 billion (63. ITES-BPO and Hardware segments. Overall pricing levels in IT services stabilized at US$ 55-60 per hour for onsite services and between US$ 18-24 per hour for offshore services. 3. The segment is expected to touch revenues of around US$ 10.7 percent.2 billion during 2004-05.4 percent. Key drivers of growth include the growing adoption of IT outsourcing and the rapid expansion in the scale and breadth of ITES-BPO offerings by Indian vendors.2 Industry Trends (2004-05) The earnings from IT-ITES exports was US$ 13.

Bangalore has for long been known as India's answer to Silicon Valley. actuarial modeling. which now includes the HCL Group. Indian IT-ITES vendors focused on improving productivity and utilization and moved up the value chain. especially software. During 2004-05.5000 new jobs are likely to be created by the IT-ITES sector in the current fiscal. Financial services. Karnataka has emerged as the computer capital and center of high-tech industries.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE 90 percent of the domestic IT-ITES revenues during 2004-05 and this market share is not likely to change in 2004-05. Infosys.The "Technopolis" of India A large part of India's success in the software sector is due to the crucial role played by the State of Karnataka in promoting and providing a boost to IT. corporate and business research.500 jobs. Bangalore . the Indian IT software and services segment added 98.000 jobs and the ITES-BPO sector added about 73. Government and telecom segments remained the key revenue drivers for the domestic IT-ITES market. A total of 203. The Government of Karnataka has also been extremely positive about the software and services marketplace and has helped . The Indian IT-ITES players expanded their focus from the Fortune 500 companies to address the needs of Global 2000 corporations. systems integration. Two more companies within the IT-ITES domain joined the billion-dollar club. TCS and Wipro. R&D engineering and remote network management to their portfolio of offerings. Insurance). and this is the city where most large software companies have set up shop and operate out of state-of-the-art facilities. ITES-BPO companies began more complex services such as financial research and analytics. o The BFSI (Banking. While IT service companies included new service lines such as package software implementation. This is the reason why it is fast becoming the "Technopolis" of India.

Percentage . The city has the highest number of engineering colleges in the world. It is. Various institutions and computer training centers have contributed to the large number of trained and talented professionals. two key segments that are expected to open up over the next few years for India are e-commerce and remote processing. almost 50 percent of the world's SEI CMM Level 5 companies.S.-the Jack Welch Technology Center. Bangalore's strengths in the software market also lie in its pursuit of new opportunities. A recent study undertaken by The Boston Consulting Group for NASSCOM clearly stated that India could earn revenues of US$9 billion from e-business solutions by 2005. Opportunities in e-commerce software solutions are emerging as a major area of growth in the Indian IT software and services industry. Bangalore has just been ranked the fourth best "Global hub of technological innovation" by none other than the United Nations. . The dynamic industrial policy declared in 1996.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE create the relevant telecom and policy infrastructure conducive to the growth of this sector. The data was edited. and over 103 R&D Institutions. COPC/ISO recognized Customer Interaction Centers. The hardware and software industries have now brought about a revolution of sorts under these schemes. which hires over 200 PhDs/scientists every month! To top it all. in fact. classified and tabulated for analysis. has ensured a productive ground for various industries. Various Approaches Of Performance Appraisal The data was processed after collection and analyzed for the purpose. workshops and exhibitions devoted to the software cause. In fact. This is also why Bangalore has been playing host to international-class conferences. with comprehensive packages of incentives and concessions. The City of Bangalore has positioned itself to help market the software industry. Analysis of data was done with the purpose of summarizing the collected data and organizing these in such a manner that they answer the research questions. home to GE's biggest R&D Center outside the U.

PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE analysis was used for analysis of data and the results have been presented by way of pie charts. After interpretations. This is done by drawing inferences from analyzed data. bar charts. After analysis. a report was prepared on the basis of inferences. . with the help of SPSS package. the phase of interpretation starts.

of employees Above 1000 Upto 100 100 .1 Distribution of companies according to the total no of Employees Total no of employees Frequency Percent Cumulative Percent Upto 100 9 30.0 Total 30 100. 16 companies employed between 100 and 1000 employees and only 5 companies were selected who employed above 1000 employees.1Indicates the total number of employees in the organization Total no.7 100.0 30.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Table 4.3 Above 1000 5 16.0 Source – Primary Data Interpretation: The above table indicates that 9 companies were selected who employed 100 and below employees. Graph 4.3 83.0 100 – 1000 16 53.1000 .

3 point scale (3.0 3.0 56.point Scale 1 3. 360 feed back (6.2 Indicates the type of appraisal system adopted by the software companies Type of Appraisal System 10 Point scale 4. 4 point scale (3.point Scale 5 Point Scale 36Feed Back MBO Manager.7 5 Point Scale 1 3. MBO (10%).2 Type of Appraisal System Frequency Percent Cumulative Percent Type of Appraisal System Manager. 5 point scale (3.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Table 4.Point scale 1 3.0 36Feed Back 2 6.3 93.3%).3 4.67%).7 36.Point scale 3. in addition to this few companies follow Open System (13.0 Total 30 100.7 open system 4 13. Supervisor.3 96. Graph 4.3 70.3 100.Supervisor. 20% of the companies emphasis on self assessment.33%).0 Source – Primary Data Interpretation The above table indicates that 36.7% of the companies are appraised by the managers/supervisors/appraiser assessment.7 86.3 Frequency of Appraisal .3%).0 80.7 10 Point scale 1 3.7 Self appraisal 6 20.A open system Self appraisal Table 4.3%).33%) and 10 point scale (3.3 90.0 MBO 3 10.Appraisers 11 36.

7 Yearly Annually 4 13.3 80.7%).PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Period Frequency Percent Cumulative Percent Quarterly 14 46. Only 3.7 46.3Indicates how often appraisals are carried out by the companies Frequency of Appraisal Other s Quarterl y Annuall y Half Yearly Table 4.0 Others 6 20. 13.4 Criteria used for evaluation Criteria Frequency Percent Cumulative Percent Performance 12 40.0 40.3% follow quarterly system of appraisal.33% of the companies followed half yearly + quarterly + annual system of appraisal.0 Source – Primary Data Interpretation From the above table most of the companies follow the annual system of appraisal (46.7%). Half yearly appraisal is carried out in 20% of the companies.0 Total 30 100.0 66.0 .0 100. Some companies follow the combination of half yearly and annual system (16.7 Half 6 20. Graph 4.

13.5 Rating System used by S / W Companies Rating Frequency Percent Cumulative Percent system Scoring 9 30.3 96. 3.3 Attendance 3 10.33% by quality of output. Graph 4.33% by the 3 point scale.33% on attendance.3 Target Vs.67 by customer focus. 13.33% by the key result area and 3. 40% of the companies evaluate their employee with the performance.0 . 3. Achievement 2 6.0 60.0 30.3 73. 6.4 Criteria used for evaluation 3 Point Scheme Quality of Output Key Result Areas Target Vs.33% by the target v/s achievement.0 Technical Competence 4 13.0 Comments 6 20.7 3 Point Scheme 1 3.0 Source – Primary Data Interpretation The above table indicates the criteria used in evaluating the employees.0 100.3 Quality of Output 1 3.3 100.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE customer Focus 6 20.0 Total 30 100. Achieveme Performance Attandence Technical Competence customer Focus Table 4.0 Key Result Areas 1 3.0 50.0 Both 15 50.7 90.0 83. 20% by the technical competence.3 93.

7 87.0 Total 24 80.0 100.5 Both 3 10. Graph 4.3 29.6 Percentage if scoring is the Rating Scale Scoring Frequency Percent Cumulative Percent Alpha 7 23.0 30 100.0 Source – Primary Data Interpretation The above table indicates that 30% of the companies use scoring as the rating scale.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Total 30 100. 20% on comments and 50% of the companies use both scoring and comments as rating scale.0 .0 System 6 20.5 Rating scale used in software companies Rating System Companies used by S/W Scorin g Both Comments Table 4.2 Numeric 14 46.

33% employees did not receive feedback.0 Source – Primary Data Interpretation The above table indicates that 86.7 Feedback to employees after Appraisal Feedback Frequency Percent Cumulative Percent Yes 26 86.7 86.7% numeric and 10% both alpha and numeric.6 if scoring is the rating scale Percentage if scoring is the Rating Scale Missing Alph a Both Numeri c Table 4. 46. which follow scoring as rating scale use 23.3% alpha.0 Total 30 100.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Source – Primary Data Interpretation From the above table the companies. . Graph 4.7 No 4 13.3 100.67% of the employees appraised received feedback and 13.

0 Summarized 3 10.8 Percentage of Feedback given to Employees Feedback Frequency Percent Cumulative Percent Written 9 30.0 100. Most companies follow a written feedback with 30.0 Manger Assessed 3 10.0 Oral 7 23.3 53.0 Self-Assessed 3 10.0 Total 30 100.0 30.0 90.0 80.00%. oral being 10%. self assessed .7 70.0 Source – Primary Data Interpretation The above table indicates how feedback is given to the employees.7 whether the person being appraised obtain feedback Feedback Appraisal No to employees after Yes Table 4.3 Detailed 5 16.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Graph 4. manager assessed 10%.

67%.7 No 4 13.67% companies follow the sharing of feedback both positive and negative in the same meeting while 13. Graph 4.33% and summarized being 10%.9 whether the negative and positive feedback is shared with the appraise in the same meeting. Almost all the companies that were sampled followed a combination of more than one type of feedback.7 86.3 100.0 Source – Primary Data Interpretation The above table indicates that 86.8How feedback is given to the employees % of feedback given to Employees Manger Assessed Self-Assessed Written Summarized Detailed Oral Table 4.9 Percentage of Positive or Negative Feedback Feedback Frequency Percent Cumulative Percent Yes 26 86. detailed 23.0 Total 30 100.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE 16. adverse was communicated in writing and good performance is already known.33% said no. . Graph 4.

PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE % of Positive & Negative feedback No Yes .

0 70.0 No 9 30.0 100.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Table 4.10 Self-Assessment Self.0 Source – Primary Data Interpretation The above table indicates that 70% of the companies follow self assessment of an employee while 30% did not follow. Self-Assessment No Yes .0 Total 30 100.Assessment Frequency Percent Cumulative Percent Yes 21 70.10 whether the self-assessment of employee is followed in the company or not. Graph 4.

11 If the company follows a self-assessment of an employee.0 .0 100.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Table 4.11 Percentage of Company following Self-Assessment Self.0 System 9 30. Source – Primary Data Interpretation The above table states the integration of the self-assessment of an employee in the existing appraisal system. is it integrated in the appraisal system followed? % of company following Self-Assessment Missing Yes No .0 85.29% said no.Assessment Frequency Percent Cumulative Percent Yes 18 60.0 30 100.7 No 3 10.0 Total 21 70. Graph 4.71% said yes and 14. 85.

12 Relation of performance appraisal in compensation increase Percentage of Compensation increase No Yes Table 4.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Table 4. Graph 4.0 Total 30 100.3 83.13 Compensation increased and Appraisers set targets .0 Source – Primary Data Interpretation The above table indicates that 83.67% did not agree.3 No 5 16.7 100.33% of the companies agreeing that appraisal are related to compensation increase and 16.12 Percentage of Compensation increase Compensation Frequency Percent Cumulative Percent Yes 25 83.

No Yes Table 4.7 9.0 Total 30 100.3 73.1 .0 Source – Primary Data Interpretation The above table indicates that 73.33% of the respondents agreeing to setting targets to employees being appraised while 26.3 No 8 26.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Compensation Frequency Percent Cumulative Percent Yes 22 73.14 Distribution of set target Distribution Frequency Percent Cumulative Percent 3 Months 2 6. Graph 4.7 100.13 The sets target for an employee being appraised Appraiser's set targets.67% said no.

Distribution of set target Missing 3 Months 3 . 3-6 (20%) and 3 months (10%).3 100.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE 3 .7 18.3 System 8 26.2 6 Months 4 13. in other companies the targets are set for 6 months (20%).0 Total 22 73.7 30 100.7 100.6 Months 2 6.15 Usage of checklists in Appraisals Check List Frequency Percent Cumulative Percent Yes 23 76.7 76.4 12 Months 14 46. the appraiser sets targets for an employee being appraised for a period of 12 months (50%). half (15) of the companies.14 If the appraiser sets targets.0 Total 30 100.0 Source – Primary Data Interpretation .3 36.7 No 7 23.0 Source – Primary Data Interpretation From the above table. Graph 4.6 Months 6 Months 12 Months Table 4. for what period the targets are set.

3 63.0 Source – Primary Data Interpretation .16 Is Career Planning effective Career Planning Frequency Percent Cumulative Percent Yes 19 63.15 Do the companies have a checklist for carrying out appraisal Usage of checklists in Appraisals No Yes Table 4. which gives the details.3 No 11 36.7 100. Some companies have a performance appraisal handbook. Graph 4.33% said no.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE The above table indicates that 76.67% of the companies (23) have a checklist for carrying out appraisals while 23.0 Total 30 100. One of the companies has an IT Tool as checklist.

0 13.e.35% 3 10. . Is Career Planning effective No Yes Table 4.7 30.33%. with a score of 70% while 35-50% and 20%-35% votes its effectiveness up to a level of 16.50% 5 16. Graph 4.0 100.3 20% .0 Source – Primary Data Interpretation From the above table. almost above 50% opts it to be very effective.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE The above table indicates that out of 30 companies 19 companies feel that career planning place an important role in Performance Appraisal (63.16 Effectiveness of 360 degree appraisals.17 Effectiveness of 360 degree appraisal Parameters Frequency Percent Cumulative Percent Less than 20% 1 3.3 35% .0 Total 30 100.3 3.67% and 10% respectively and less than 20% declares it least effective. i.0 Above 50% 21 70.33%) and rest of the 11 companies do not agree with this (36. 3.36%). it is understood that when 360 score is implemented as a form of appraisal so as to realize its effectiveness in a firm.

of employees Companies Distribution of Companies according to the total no of Employees Per. Of Acheiv.17 The level of effectiveness of 360 score when implemented as a form of appraisal.50% Above 50% Table 4.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION 0 OF EMPLOYEE Graph 4.3% 1 (20) 1 3.18 Distribution Of Companies according to the total no. Cus. Effectiveness of 360 degree appraisal Less than 20% 20% .8) Large 6 (37. Atten. Output (100) Medium 3 (18.3% 3 10% Note: Figures in brackets indicates percentage to total. Source – Primary Data .7% 1 (20) 1 3. Tech.8) 2 (40) 2 6. KRA’s Quality Focus Competence Vs. Tar.3% 3Point Scheme Total 9 (100) 16 (100) 5 (100) 30 100% Small 9 Total 12 40% 6 20% 4 13.5) 4 (25) 3 (18.3% 1 (20) 1 3.35% 35% .

8%).customer focus(37. quality of output(20%) and 3Point scheme(20%) Table 4.5%).PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Interpretation From the above table it can be inferred that the criteria used to evaluate an employee for a Small Company is performance (100%) but for a Medium Company it is performance(18. achievement(40%). technical competence(25%) and attendance(18. And finally for a Large Company the criteria include target Vs.19 Type of Appraisal System adopted and the frequency of Appraisal Appraisal Frequency Manager Supervisor Appraiser Self-Appraisal 3 Quarterly Half Yearly 11 (100) 3 (50) (50) 3 (75) Annually Others Total 11 (100) 6 (100) 4 (100) 3 2 (100) 1 (100) 11 (100) 2 (100) 1 (100) Open System MBO 360 Feedback 1 (75) 3 (100) 5Point Scale 3Point Scale .8%).Key Result Areas(20%).

Quarterly as well as Half-yearly(50%).PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE 4point Scale (100) (100) 1 (100) 1 (100) 30 (100) Total 14 (46.7) 6 (20) 4 (13.7) 3 (10) Note: Figures in brackets indicates percentage to total. Where as 360Degree feedback.7) Note: Figures in brackets indicates percentage to total. Source – Primary Data Interpretation .8) 1 (6. 5Point Scale.3) 3 (18. Open system which is carried out half-yearly and annually.8) Large 5 (31.3) 5 (16.20 Adoption of Performance Appraisal and percentage of Feedback given to employees. Self-Appraisal. Feedback Companies Written Oral Detailed Summarized SelfAssessed 9 Small (100) (100) Medium 7 (43.3) 2 (40) 3 (10) 16 (100) 5 (100) 30 (100 Manager assessed Total 9 3 (60) 3 (10) 9 Total (30) 7 (23. 3Point Scale. 4Point Scale follow other Appraisal System Table 4.3) 5 (16. Source – Primary Data Interpretation This table indicates that the Organization carries out appraisals for QuarterlyManagers/Supervisors/Appraisers.

7%). Written(30%). Medium and Large Companies.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE This table indicates how feedback is obtained from the employee. Summarized(10%). Manager Assessed(10%) which holds good for Small. Oral(23.3%). ie. Detailed(16. .. Self-Assessed(10%).

35%-50%. Above 50% .67) 5 (16. in between 20%-35%.3) Total 1 (3.7) (70) 21 (70) Total Appraisal 30 (100) 30 (100) Note: Figures in brackets indicates percentage to total.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Table 4. Source – Primary Data Interpretation This table shows how effective and feasible the 360Degree Appraisal format applies to the Companies broken up into segments of : less than 20%.21 Performance Appraisal System and the effectiveness of 360Degree feedback Effectiveness of 360Degree Appraisal Less Than 20%-35% 35%-50% Above 50% 20% 1 3 5 21 (3.3) (10) 3 (10) (16.

0..5 * 0.e.5 v 0. 30 P = assumed level of effectiveness i.0 .67% 5 50% and Above 70% 21 TOTAL 100% 30 No.7 – 0.5 Z = 2.191 .50 Q = 1-P Q = 1 .191 Calculated Value |Z| cal: 2.50 = 0.50 is more than or equal Z= 30 0.05 Z= p-P v PQ n p= X /N = 21 / 30 0 appraisals X= number of respondents saying the effectiveness of 360 to 50% n = total number of respondents ie.22 The level of effectiveness of 360 0 appraisals Effectiveness Percentage Of Company Less than 20% 3.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Table 4. 0.33% 1 20%-35% 10% 3 35%-50% 16. of Company Source: Primary Data Ho: The Level of effectiveness of 360 0 appraisals is less than 50% H1: The level of effectiveness of 360 0 appraisals is more than or equal to 50% Level of Significance.

PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Table Value |Z| tab: 1.645 Inference Since the |Z| cal > Z tab. 0 appraisal . the researcher has to reject Null hypothesis at 5% level of significance and the researcher can conclude that the level of effectiveness of 360 is more than or equal to 50% (H1).

common working capital. and dependability forming the behavior-oriented areas in most of the companies. performance. The manager appraisal and self-appraisals help in comprehensive results. contribution coding standard. helping qualitative contribution in building culture. All variables are easily quantified into a meaningful exercise and objective with work behavior. work knowledge. attitude. conflict management. value system. The criteria / measures to evaluate an employee in most of the companies are technical competence. There is benefit of the objective setting for next six months. The self-appraisal of an employee is emphasized. A clear distinction between performers and non-performers is possible.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE 5. There is an opportunity for free and regular feedback because of the open and transparent system. The positive areas/benefits of the appraisal system followed in software companies are inputs for training and development. teamwork. achievement vs. Most of the companies followed a combination of self-appraisal and manager assessment. key result areas set at the beginning of a specific period forming the result-oriented areas. objectives. . Appraisal on performance as well as values makes it a positive area where it makes it punctual and efficient. career planning and development. The rating system used in most of the companies is both scoring and comments with numeric-type widely used and a few companies use both alpha and numeric type of scoring. interpersonal skills. due to the appraisals there is scope for the growth of the employee and organization. communication. The most common appraiser is the manager/supervisor/appraiser.1FINDINGS The following findings have been derived from the study conducted. leadership skills.

into the appraisal system followed. It is related to the increment and project allowance. the appraisal by the manager and self-sources are protected. and current estimated potential. It removes a lot off friction down the line improving boss-subordinate relation. Evaluation and feedback is more comprehensive and complete. 360° f eedback is followed in a lesser percentage of companies. six months reviews. A checklist for carrying out appraisal is followed in many companies. Both positive and negative feedbacks are shared in the same meeting with appraise.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Majority of the companies obtain feedback on the person being appraised. by revenues and assignments. 12 months and three months being lease. The limitations because of 360° feedback is not directly appreciated and not well taken in application-oriented areas. slab-not time based is prevalent in a few companies. Reverse appraisal. a raise is given. Targets are tracked by constant monitoring. weekly reports. six months. There is a combination of the type of feedback given to the employers. If the appraise scores beyond the cut-off score based on the grades. Career planning is followed in most companies for two to three months. the manager assessment in a few companies the sources are protected. Feedback is given in the written form. manager assessed and self-assessed in most cases while summarized in few cases. . appraisal at the end of the project. The benefits of 360° feedback are that it gives an all round perspective r estricting the inconsistency factors that exists in traditional appraisal system. project completion time. which is integrated. The appraisal system is manual with a few companies following automated and few both. Almost all companies follow a self-assessment of an employer. input form customer. Compensation increase is related to performance and depends on the performance code/rating given. In majority of the companies. Manager gives the feedback in most cases while peer and mixed is used in few cases. The appraiser sets targets for the employee being appraised for a period of six months. Most companies’ have not implemented the system as it consumes more time.

distribution of the questionnaire and conducting of personal interviews did help to arrive at the standards of appraisal system adopted by the software industry in the city of Bangalore. An appropriate system should be an open system. reduce subjectivity judgment factor. None of the companies followed one single system . From the appraisal systems. It should provide for two-way feedback. Hence.2 RECOMMENDATIONS During the study. certain suggestions could be arrived at with the help of available and relevant data. it is considered to be important for the development of the industry.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE The 3600 feedback is an appropriate system to use as it helps the appraise to know the areas to be focused for development. This in turn could enable one to understand the growth and development of a company and that of its employees. Most of the software companies are in the verge of implementing 360 0 feedback processes in the near future. Appraisal systems are a very effective means to realize the growth of a company and its employees.3 CONCLUSION The major implications are to know the different appraisal systems adopted in the software industry and its level of effectiveness when implemented in the various organizations. 5. 5. the 360 0 are the most preferred by a majority of them. system that link reward / recognition and pay for performance. The common type of appraisal system is the open system and the management by objectives. One of the companies followed personal interaction evaluation personal business commitment program. From the research. with the 5-point scale being widely used. The point-based system of appraisal is also very popular among the software companies. some of the companies followed the 360-feedback process.

Over a period of time. . appraisal becomes a ritual because of a lot of distrust and employees being scared of the process. The rating by peer and subordina tes is not followed which is shortcoming. Implementation may not be as planned because of time cons traints and span of reports. Performance appraisal is followed in most of the companies annually and half yearly while a less percentage follows the quarterly system. No appraisal system is free from limitations as it is very subjective. Absence of project end reviews poses as a limitation. A combination of half-yearly and annual system is followed.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE of appraisal.

Mark. 1996. R. 1996. Rudrebasavaraj M. 1996. Dynamic Personnel Administration management of Human Resourse. US Publication. 1997.R. Methodology of Research in Social Science.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE Ashwathappa K. TATA McGraw Hill. Saiyadin. 360Degree Feedback: The powerful new model for Employee Assessment and Performance management. Edwards. Krishna Swami O. Personnel Management. 1997. Performance Appraisal . TATA McGraw Hill.Himalaya Publishing House. QUESTIONNAIRE . 1997. Human Resource and Personnel Management. Himalaya Publication.N. Sunday Times Business Skills. Martin Fischer. Monappa Arun and Mizra S.

PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE I am a final year MBA student of Kristu Jayanti College Bangalore. conducting a research on Appraisal Systems . Of employees in the Organization 1. If yes. What are the criteria used in your company to evaluate an employee? Performance Customer Focus Technical Competence Attendance Target Vs. Achievement Key Result Areas Quality of Output 3 Point Scale . Your participation ill be greatly appreciated in this research effort. How often are appraisals carried out in your organization? Quarterly Half Yearly Annually Others (Please Specify) 4. Do you appraise an employee by an appraisal system? Yes No 2. the responses will be kept confidential and only be used in an aggregate manner . Name of the Organization: Designation: Total No. This project is in partial fulfillment of my MBA program. what is the system of appraisal adopted by your company? 3.

Does the appraiser set targets for an employee being appraised? Yes No If yes. Do you obtain feedback on the person being appraised? Yes No 7. Is compensation increase related to an appraisal in any way? Yes No 11. Do you have a checklist for carrying out appraisals? Yes No . is it integrated into the appraisal system you follow? Yes No 10. for what period? 3 Months 3-6 Months 6 Months 12 Months 12. Do you share both positive and negative feedback with appraise in the same meeting? Yes No 9. How is feedback given to the employees? Written Oral Detailed Summarized Self-Assessed Manager Assessed 8. Do you follow a self-assessment of an employee? s No a) If yes. What is the rating system used in your company? Scoring Comments Both If scoring is it Alpha Numeric Both 6.PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE 5.

35% 35% . Do you follow career planning? Yes No 14. What would be the level of effectiveness of 360 score when implemented as a form of appraisal? Less than 20% 20% .50% above 50% .PERFORMANCE SATISFACTION APPRAISALS AND EVALUATION OF EMPLOYEE 13.