³A STUDY ON THE CONCEPT OF ³PERFORMANCE APPRAISAL´ AT AL SHIFA HOSPITAL´, MALAPPURAM

A PROJECT REPORT Submitted by BABU M

In partial fulfillment of the requirement for the award of the degree Of MASTER OF BUSINESS ADMINISTRATION IN HUMAN RESOURCE Under the guidance of Mr. R.SANTHOSH KUMAR, MBA DEPARTMENT OF MANAGEMENT STUDIES ADHIYAMAAN COLLEGE OF ENGINEERING (Autonomous) HOSUR-635 109 ANNA UNIVERSITY OF TECHNOLOGY ± COIMBATORE MAY- 2011 1

BONAFIDE CERTIFICATE
This is to certify that the project report entitled ³A STUDY ON THE CONCEPT OF ³PERFORMANCE APPRAISAL´ AT AL SHIFA HOSPITAL´ submitted by BABU-M (AC09M) is a Bonafide record of the project done by him during the academic year 2009-2011, under my guidance and supervision in partial fulfillment of DEGREE OF MASTER OF BUSINESS ADMINISTRATION.

Date : Place: HOSUR Mr. SANTHOSH KUMAR (Faculty Guide) ) Dr. R CHANDRASEKHAR (Director)

Department of Management Studies Adhiyamaan College of Engineering (Autonomous) Hosur ± 635 109 Tamil Nadu
Viva voice examination held on: ___________________

Internal Examiner

External Examiner

2

DECLARATION

I hereby declare that this project report entitled ³A STUDY ON THE CONCEPT OF ³PERFORMANCE APPRAISAL´ AT AL SHIFA HOSPITAL´ submitted to Department of Management studies, ADHIYAMAAN COLLEGE OF ENGINEERING, HOSUR in partial fulfillment of the requirement for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION is a original work done by me during the period of my study at the college under the supervision and guidance of Mr. R.SANTHOSH KUMAR, MBA, Department of Management Studies, Adhiyamaan College of Engineering, Hosur.

PLACE: HOSUR DATE:

BABU M

3

ACKNOWLEDGEMENTS

³Behind every success lie invisible hands of so many able persons without whom this achievement would have never come into existence´. I lay some words of gratitude to them.

First and foremost I humbly express my gratitude Mr. C.SATHEESH General Manager and Mr. SURESH BABU Chief of HR Department for giving me the opportunity to undergo my project training in AL SHIFA HOSPITAL.

I would like to thank and express my sincere gratitude to my guide Mr. SURESH BABU for his valuable guidance, encouragement and suggestions throughout my project work.

I thank to whole staff of AL SHIFA HOSPITAL for their cooperation in the project work. Without their contribution this study would not have been completed.

I proudly utilize this privilege to express my hearty thanks to our PRINCIPAL

Dr.

G.RANGANATH, Adhiyamaan College of Engineering, Hosur, for giving me admission in this prestigious institution. My special words of thanks to Dr. R.CHANDRASEKHAR,

DIRECTOR, Department of Management Studies. I would like to express my sincere gratitude to our HEAD OF THE DEPARTMENT Dr. V. NAVANEETHA KUMAR for his guidance and

support and my faculty guide Mr. SANTHOSH, who helped me a lot in completing my mini project their constant encouragement and suggestion.

4

CONTENTS CHAPTER NO. 1 EXECUTIVE SUMMARY TITLE PAGE NO. I.

INTRODUCTION II 1) MEANING AND DEFINITION OF THE STUDY 2) OBJECTIVES OF THE STUDY 3) SCOPE OF THE STUDY 4) LIMITATIONS OF THE STUDY 2-5

III

RESEARCH METHODOLOGY

6

IV

REVIEW OF LITERATURE

7-26

III IV

ORGANIZATIOANL PROFILE

27-43 44-57

DATA ANALYSIS AND INTERPRETATION V 1) FINDINGS 2) SUGGESTIONS 3) CONCLUSIONS 4) BIBLIOGRAPHY 5) ANNEXURE 5 CONCLUSIONS
58-64

EXECUTIVE SUMMARY

This Project is on the topic A STUDY ON THE CONCEPT OF ³PERFORMANCE APPRAISAL´ AT AL SHIFA HOSPITAL´. In this project I have explain the performance appraisal, how the performance appraisal is done in an organization. I have asked several question regarding performance appraisal to employees and questionnaire is been filled by the AL SHIFA employees. To know the awareness level and success rate of performance appraisal in AL SHIFA. Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does.

Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future.

Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims.

The objective of this project work was to provide a broader outlook on Performance Appraisal. The other objective of the study is to know the purpose of performance appraisals.

6

INTRODUCTION MEANING AND DEFINITION OF THE STUDY MEANING:
Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance. Performance here refers to the degree of accomplishment of the tasks that make up an individuals job. It indicates how will an individuals is fulfilling the job demands. Often the term is confused with effort, but performance is always measured in terms of results and efforts.

DEFINITIONS:
³Performance Appraisal is the process of determining from how well some one is performing in his or her job it involves measuring performance and comparing it with an established standard´. -JOHN PEARCE AND RICHARD ROBINSON ³Performance appraisal is a method of evaluating the behavior of the employees in the work spot, normally including both the quantitative and qualitative aspects of the job performance´. -V.S.P.RAO ³Performance appraisal is the system of evaluation of the individual with regard to his/her performance on the job and his/her potential for development´. --Dale S. Beach ³Performance Appraisal is a systematic, periodic and an impartial rating of employee¶s excellence in matter pertaining to his/her present job and his/her potential for a better job´. --Edwin B. Flippo

7

OBJECTIVES OF THE STUDY
The objective of the study is the survival of every organization in the market it is very essential to enhance its production and productivity. To raise the production and productivity, human resources are important factor. The efficiency of the workmen raises the production and productivity Performance Appraisal System can work as a good motivational factor to improve the efficiency of the workman. y To study the Performance Appraisal System¶s for executions in AL SHIFA HOSPITAL PVT .LTD. PERINTALMANNA,

y

To study the employees attitude towards Performance Appraisal System.

y

To find out the possible errors and problems in the Performance Appraisal system.

y

To evaluate the effectiveness of Performance Appraisal system.

y

To suggest some suitable changes in the existing Performance Appraisal System¶s

y

To understand the system of H.R. its content tools of methodology

8

SCOPE OF THE STUDY
The study was intended to obtain information about: y y The Performance standards of an employee The quality of work in the organization since the quality of work depends on the performance of the employee. y Perception among employees regarding Performance Appraisal.

9

LIMITATIONS OF THE STUDY
y y The major limitation of the study is the limited time period of 60-days. It was difficult to personally interview a large number of executives and to seek their opinions on relevant issues. y Sample size being small not every body¶s view could be considered. Problem will be increased with the confidential information. y Errors are introduced in the appraisal because of a defect or bias in the person conducting the appraisal. y y There is often a lack of communication whereby the employee does not know he is rated. Apart from lack of communication, sometimes communication of the rating to the employee, if not done properly, would be taken as a criticism and may even result in his performing more poorly. y Often a supervisor is reluctant to give a low rating to an ineffective subordinate and gives him an average rating.

10

RESEARCH METHODOLOGY: Method of sampling:
The basic idea of sampling is that by selecting some of the elements in a population we may draw conclusion about the entire population. This has an important bearing on the collection of the reliable data of the present study is to acquire an intensive opinion about the quality of work life in AL SHIFA HOSPITAL PVT .LTD. PERINTALMANNA, MALAPPURAM, KERALA For this purpose a descriptive research method was followed for the present study. The study in this context has utilized available material about various aspects of HRM, data collected through well designed questionnaire by giving to the employees of AL SHIFA HOSPITAL PVT .LTD. PERINTALMANNA,

Sample size: In the present study of performance appraisal in AL SHIFA HOSPITAL PVT
.LTD, 30 employees were selected randomly for sampling

Construction of tools: The tool used for collecting the data for the study is questionnaire. A
questionnaire is simple, a formulized schedule to obtain and record specified and relevant information with tolerably accuracy and completeness. Data was collected through a specially designed questionnaire with 15 questions. SOURCES OF DATA: Collection of data is form both the primary and secondary sources

Primary data: Data is collected through a well designed and approved questionnaire and also
interviews

Secondary data: It is collected from the records of the organization, and SOP from HRD Dept.

FRAMEWORK OF ANALYSIS:
For analysis and interpreting the collected data through primary data is part to statistical techniques namely, percentage analysis and graphical analysis with bar charts. It is used arriving at valid reliable conclusion.

11

REVIEW OF LITERATURE
The history of Performance Appraisal is quite brief. It¶s in the early 20th century can be traced to Taylor¶s pioneering Time and Motion studies. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of Second World War ± not more than 60 years ago. Yet in a broader sense, the practice of appraisal is a very ancient art. There is, says DULEWICZ (1989), a basic human tendency to make judgments about those one is working with, as well as about oneself.´ Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitrarily. The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgments made will be lawful, fair, defensible and accurate. Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified. The process was firmly linked to material outcomes. If an employee's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order. Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed. Pay rates were important, yes; but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence. As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time. 12

MODERN APPRAISAL:
Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. In many organizations - but not all - appraisal results are used, either directly or indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses and promotions. By the same token, appraisal results are used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay.)

Controversy:
Few issues in management stir up more controversy than performance appraisal. There are many reputable sources - researchers, management commentators, and psychometricians - who have expressed doubts about the validity and reliability of the performance appraisal process. Some have even suggested that the process is so inherently flawed that it may be impossible to perfect it. At the other extreme, there are many strong advocates of Performance Appraisal. Some view it as potentially "... the most crucial aspect of organizational life" - LAWRIE (1990)

Link to Rewards:
Research (BANNISTOR & BALKIN, 1990) has reported that appraises seem to have greater acceptance of the appraisal process, and feel more satisfied with it, when the process is directly linked to rewards. Such findings are a serious challenge to those who feel that appraisal results and reward outcomes must be strictly isolated from each other.

13

INTRODUCTION OF PERFORMANCE APPRAISAL DEFINITIONS:
³Performance Appraisal is the process of determining from how well someone is performing in his or her job it involves measuring performance and comparing it with an established standard´. -JOHN PEARCE AND RICHARD ROBINSON ³Performance appraisal is a method of evaluating the behavior of the employees in the work spot, normally including both the quantitative and qualitative aspects of the job performance´. -V.S.P.RAO

A FORMAL DEFINITION OF PERFORMANCE APPRAISAL:
³The performance appraisal is the process of evaluating the performance and qualification of the employees in terms of the requirements of the job for which he is employed, for the purpose of administration including placement, selection for promotion, providing financial rewards and other action which require differential treatment among the members of group as distinguished from actions affecting all members equally´.

MEANING OF PERFORMANCE APPRAISAL:
Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance. Performance here refers to the degree of accomplishment of the tasks that make up an individual¶s job. It indicates how will an individual¶s is fulfilling the job demands. Often the term is confused with effort, but performance is always measured in terms of results and efforts.

14

PURPOSES OF PERFORMANCE APPRAISAL:
Performance appraisal aims at attaining the different purposes. They are: y y To create and maintain a satisfactory level of performance. To contribute to the employee growth and development through training, self and management development programs. y y y y To help the superiors to have a proper understanding about their subordinates. To guide the job changes with the help to continuous ranking. To facilitate fair and equitable compensation based on performance. To provide information for making decisions regarding lay off, retrenchment etc.

SCOPE OF PERFORMANCE APPRAISAL:
The world today is a world of revolutionary changes..In the next few years the world will be witnessing a mega transformation of global economy. India has also been affected by this change. New challenges in various fields are being accepted. Innovation in the true sense is to be perceived and understood. In the 19th century it was the industrial revolution, which promised India a better future, but now it is the role of the information technology, which decides the future. The stride in industrialization in the 20th century has been a remarkable future with various changes in the working and managing styles of the industries. The advent of the information technology along with the rapid industrialization in India demands a highly motivated, educated, skilled and goal oriented work force. Performance has become the watchword in today¶s industrial scene.

15

OBJECTIVES OF PERFORMANCE APPRAISAL:
The objective of performance appraisal scheme must relate directly to the business and growth needs of units of organization as a whole. The following are some impotent objectives of an appraisal scheme: y y y y Providing information for succession and resource planning. Providing a base for improved commutation between boss and subordinates. Identifying and recording performance weaknesses. Providing a basis for analysis of performance and identifying the required standards and improvement. y y Identifying potential. Mutual feedback between boss and subordinate.

COMPONENTS OF APPRAISAL EVALUATION:
A performance appraisal evaluation may be conducted in an organization due to many reasons such as y y y y y Counseling Promotion Research Salary Administration

So it is very necessary to being by stating very clearly the objectives of the evaluation program. Having done this, the personnel evaluation system should address the questions who, what, where, how, of performance appraisal.

16

³WHO OF THE APPRAISAL´? The appraisal can be accomplished by one or more individuals involving a combination of immediate supervisor, other managers acquainted with assesses work, a higher level manager, a personnel manager, the assesses peers, the assesses himself and the assesses sub ordinates. Sometimes self evaluation is also employed for evaluating performance. Self rating emphasizes human relations, while superiors focus on technical knowledge and initiative. But this approach had its disadvantages i.e., the individual may rate himself excessively high that it would be if I his superior rated him. Because of this fairly consistent upward bias in self-appraisals, the best thing would be to use these appraisals for counseling and developing sub ordinates. They are not useful for making salary and promotion decisions. Many companies use rating committees to evaluate employees. These committees consist of supervisors, peers and subordinates. Everyone on the committee is a person who is able to intelligently evaluate some aspect of the employee¶s performance. Many discrepancies in the ratings may occur when evaluations are by individuals.

³WHAT´ OF THE APPRAISAL? The ³what´ of the performance appraisal, consist in appraising non-supervisory employees for their current performance and the managers of future potential and it also includes evaluation of human traits. ³WHY OF THE APPRAISL´? The ³why´ of an appraisal is concerned with? y Creating and maintaining a satisfactory level of performance of employees in their present job. y y y Highlighting employee needs and opportunities for personal growth and development. Aiding in decision making for promotions, transfers, lay offs and discharges. Promoting understanding between the supervisor and the subordinates.

17

y

Providing useful criteria for determining the validity of selection and training methods and techniques and forming, concrete measures for attracting individuals of higher caliber to the enterprise.

³WHEN´ OF THE APPRAISAL? The ³when´ answer the query of appraisal? It has been suggested that formal counseling should occur continuously. The manager should discuss and employees work as soon as possible after he has judged it. He should use good work to provide positive reinforcement and use poor work as a basis for training. In most organization employees are formally evaluated once a year, in others twice a year. New employees are rated more frequently than the older ones. The ideal thing is that each employees should be rated three months there after being assigned to a job, after six months on the job and every six months thereafter. The time of rating should not coincide with the time salary reviews, for if the two occur together constructive evaluation and consideration of self-development will probably take second place to the pressures of pay.

³WHERE´ OF THE APPRAISAL? The ³where´ indicates the location where an employee may be evaluated? It is usually done at the place of work of office of the supervisor. Informal appraisal may take place anywhere and everywhere, both on the job in work situations and off the job. ³HOW´ OF THE APPRAISAL Under ³how´, the company must decide what different methods are available and which of these may use for performance appraisal. On the basis of the comparative advantages, and disadvantages it is decided which method would suit purpose best.

18

PROCESS OF PERFORMANCE APPRAISAL

I Creating performance standards

II Communicating the performance standards

VI Taking corrective action

III Measuring actual performance

V Communicating the appraisal

IV Comparing actual and standard performance

19

METHODS OF PERFORMANCE APPRAISAL

TRADITIONAL METHODS
1. Graphic Rating Scale 2. Ranking Method 3. Paired Comparison Method 4. Forced Distribution Method 5. Check List Method  Simple Checklist  Weighted checklist  Critical Incident Method  Forced choice method 6. Essay/ Free form Appraisal 7. Group Appraisal 8. Confidential Reports

MODERN METHODS
1. Behaviorally Anchored Rating Scales 2. Assessment Center 3. Human Resource Accounting 4. Management by Objectives 5. Psychological Appraisals

TRADITIONAL METHODS
1) Graphical rating scale:
Graphic Rating Scales compare individual performances to an absolute standard. In this method, judgments about performance are recorded on a scale. This is the oldest and widely used technique. This method is also known as linear rating or simple rating scale. The appraisers are supplied with printed forms, one for each employee. These forms contain a number of objectives, behavior and trait based qualities and characters to be rated like quality and volume of work, job knowledge, dependability, initiative, attitude, etc., In the case of workers and analytical ability, creative ability, initiative, leadership qualities, emotional stability in the case of managerial personnel. These forms contain rating of scale. Rating scales are of two types, viz., continuous rating scale and discontinuous rating scale. In continuous order like 0, 1, 2, 3, 4&5 and in discontinuous scale 20

the appraiser assigns the points to each degree. The points given by the rater know performances regarding each character are added up to find out the overall performance. Employees are ranked basis of total points assigned to each one of them. One reason for the popularity of the rating scales is its simplicity, which permits many employees to be quickly evaluated. Such scales have relatively low design cost and high incase of administration. They can easily pin point significant dimensions of the job. The major drawback to these scales is subjectivity and low reliability. Another limitation is that the descriptive words often used in such scales may have different meanings to different raters.

2) Ranking Method:Under this method, the employees are ranked from best to worst on some characteristics. The rater first finds the employees with the highest performance and the employees with the lowest performance in that particular job category and rates the former as the best and latter as the poorest. Then the rater selects the next highest and next lowest and so on until he rates all the employees in that group. Ranking can be relatively easy and inexpensive, but its relativity and validity may be open to doubt it may be affected by rater bias or varying performance standards. Ranking also means that somebody would also be in the back bench. It is possible that the low ranked individual in one group will turn out to be superstar in another group. One important limitation of the ranking method is that the size of the difference between individuals is not well defined. For instance, there may be little difference in performance between individual¶s ranked second and third, but big difference between those ranked third and fourth. Column I (Best) 1) . . . . . . . . . . . . . . . . 2) . . . . . . . . . . . . . . . . 3) . . . . . . . . . . . . . . . . 4) . . . . . . . . . . . . . . . . 5) . . . . . . . . . . . . . . . . 21

Column II (Worst) 6) . . . . . . . . . . . . . . . . 7) . . . . . . . . . . . . 8) . . . . . . . . . . . . . . 9) . . . . . . . . . . . . . . 10) . . . . . . . . . . . . . .

3) Paired Comparison Method:This method is relatively simple. Under this method the appraiser ranks the employees by comparing one employee with all other employees in the group, one at a time. This method results in each employee being given a positive comparison total and a certain percentage of total positive evaluation. Paired comparison doesn¶t force distribution of employees in each department. For instance, if a department has two outstanding employees and six average employees and paired comparison is correctly utilized, then those two employees will get a much higher percentage of positive comparison than the other six. Paired comparison method could be employed fairly, easily when the number of employees is less. The number of comparisons required equals N (N-1)/2.This means that where the number is fairly large the technique may be time consuming. Another

22

limitation of this technique is that employees are simply compared to each other on total performance rather than specific job criteria. A A B C D E B A C A C D A D C E A E E E -

To compute employee¶s positive evaluations: Number of positive evaluations x 100 = employees % superior evaluation. Total number of evaluations Employee A 4/4 x100=100% Employee B 0/4x100=0% Employee C 2/4x100=50% Employee D 1/4x100=25% Employee E 3/4x100=75%

4) Forced Distribution method:The rater may rate his employees at the higher or at the lower end of the scale under the earlier methods. Forced distribution method is developed to prevent the raters from rating too high or too low. Under this method, the rater after assigning the points to the performance of each employee has to distribute his ratings in a pattern to conform to normal frequency distribution.

23

Thus, similar to the ranking technique, forced distribution requires the raters to spread their employee evaluations in a prescribed distribution. This method eliminates central tendency and leniency biases. However, in this method employees are placed in certain ranked categories but not ranked within the categories. Quite often work groups do not reflect a normal distribution of individual performance. This method is based on the rather questionable assumption that all groups of employees will have the same distribution of excellent, average and poor performers. If one department has all outstanding employees, the supervisor would find it extremely difficult to decide who should be placed in the lower categories. Difficulties can also arise when the rater must explain to the employee why he was placed in one grouping and others were placed in one grouping and others were placed in higher groupings.

5) Checklist Methods:The checklist is a rating technique in which the supervisor is given a list of statements or words asked to check statements representing the characteristics and performance of each employee. There are three types of checklist methods, viz., simple checklist, weighted checklist and forced choice method.

I) Simple Checklist Method:
The checklist consists of large number of statements concerning employee behavior. The rater checks to indicate if the behavior of employees is positive or negative to each statement. Employee performance is rated on the basis of number of positive checks. The negative checks are not considered in this method. A difficulty often arises because the statements may appear to 24

be virtually identical in describing the employee. The words or statements may have different meanings to different raters.

II) Weighted checklist method:
This method involves weighting different items in the checklist, having a series of statements about an individual, to indicate that some or more important than others. The rater is expected to look into the questions relating to the employees behavior, the attached rating scale and tick those traits that closely describe the employee behavior. Often the weights are not given to the supervisors who complete the appraisal process, but are computed and tabulated by someone else such as a member of the personnel unit. In this method the performance ratings of the employee are multiplied by the weights of the statements and the coefficients are added up. The cumulative co-efficient is the weighted performance score of the employee. Weighted performance score is compared with the overall assessment standards in order to find out the overall performance of the employee. The weighted checklist, however, is expensive to design, since checklist for each different job in the organization must be produced. This may prove time consuming also in the end. Though the weighted checklist method is evaluative as well as developmental, it has the basic problem of the evaluator not knowing the items which contribute mostly of successful performance.

III) Forced Choice Method:This method was developed at the close of World War II. Under this method, a large number of statements in groups are prepared. Each group consists of four descriptive statements concerning employee behavior. Two statements are most descriptive and two are least descriptive of each tetrad. Sometimes there may be five statements in each group out of which one would be neutral. The actual weight ages of the statements are kept secret. The appraiser is asked to select one statement that mostly describes employee¶s behavior out of the two favorable statements and one statement from the two unfavorable statements. The items are usually a mixture of positive and negative statements. The intent is to eliminate or greatly reduce the rater¶s personal bias, specially the tendency to assign all high or low ratings. The items are designed to discriminate effective from ineffective workers as well as reflect valuable personal qualities.

25

IV) Critical Incident Method:Employees are rated discontinuously, i.e., once in a year or six months under the earlier methods. The performance rated may not reflect real and overall performance as the rater would be serious about appraisal just two or three weeks before the appraisal. Hence a continuous appraisal method, i.e., critical incident method has been developed. Under this method, supervisor continuously records the critical incidents of the employee performance or behavior relating to all characteristics in a specially designed note book. The supervisor rates the performance of his subordinates on the basis of notes taken by him. Since the critical incident method does not necessarily have to be a separate rating system, it can be fruitfully employed as documentation of the reasons why an employee was rated in a certain way. The critical incident method has the advantage of being objective because the rater considers the records of performance rather than the subjective points of opinion, for example, mood, emotional balance, relationship between superior and subordinate. This certainly helps in reducing bias in the evaluation. However, the system is not without drawbacks. First, what constitutes a critical incident is not defined in the same manner by all raters. Next, recording events continually over a period of time may be resented by the raters.

6) Essay / Free Appraisal:This method requires the manager to write a short essay describing each employee¶s performance during the rating period. This format emphasizes evaluation of overall performance, based on strengths/weaknesses of employee performance rather than specific job dimensions. By asking supervisors to enumerate specific examples of employee behavior, the essay technique minimizes supervisory bias and halo effect. The time involved in writing separate essays about each employee can be formidable. Essays are not amenable for evaluation and analysis; 50 essays describing different employee¶s performance cannot be tied to merit increases and promotion possibilities because there is no common standard. Another inherent limitation of this method is that the evaluators may have unequal skills in writing the essays. A skillful writer can present a more dramatic case about an employee 26

than an awkward writer or supervisor. Thus, the quality of the ratings depends, actually on employee performance, but on the writing ability of the rater.

7) Group Appraisal:Under this method, an employee is appraised by group of appraisers. This group consists of the immediate supervisor of the employee, to other supervisors who have close contact with the employees work, manager or head of the department and consultants. The head of the department or manager may be the chairman of the group and the immediate supervisor enlightens other members about the job characters, demands, standards of performance etc. This method is widely used for purposes of promotion, demotion and retrenchment appraisal.

8) Confidential Reports:Assessing the employee¶s performance confidentially is a traditional method of performance appraisal. Under this method, superior appraises the performance of his subordinates based on his observations, judgment and intuitions. The superior keeps his judgment and report confidentially. In other words the superior does not allow the employee to know the report and his performance. Superior writes the report about his subordinates strength, weaknesses, intelligence, attitude to work, sincerity, commitment, punctuality, attendance, conduct, character, friendliness, etc. Though confidential report is a traditional method, most of the public sector organizations still follow this method in appraising the employees¶ performance. This method suffers from a number of limitations.

MODERN METHODS
1) Behaviorally Anchored Rating Scales (BARS):The behaviorally anchored rating method (BARS) method combines elements of the traditional rating scales and critical incidents methods. Using BARS, job behaviors from critical incidenteffective and ineffective behaviors are described more objectively. The method employs

27

individuals who are familiar with a particular job to identify its major components. They then rank and validate specific behaviors for each of the components.

How to construct BARS?
Developing a BARS follow a general format which combines techniques employed in the critical incident method and weighted checklist ratings scales. Emphasis is pinpointed on pooling the thinking of people who will use the scales as both evaluators and evaluees. Step I: Collect Critical Incidents: People with knowledge of the job to be probed, such as job holders and supervisors, describe specific examples of effective and ineffective behavior related to job performance. Step II: Identify Performance Dimensions: The people assigned the task of developing the instrument cluster the incidents into a small set of key performance dimensions. Generally between five and ten dimensions account for most of the performance. Examples of performance dimensions include technical competence, relationships with customer handling or paperwork, and meeting day to day deadlines. While developing varying levels of performance for each dimension, specific examples of behavior should be used, this could later be scaled in terms of good, average or below average performance. Step III: Reclassification of Incidents: Another group of participation who are knowledgeable about the job instructed to retranslate or reclassify the critical incidents generated previously. They are given the definition of job dimension and told to assign each critical incident to the dimension that it best describes. Step IV: Assigning Scale Values To The Incidents: Each incident is then rated on a one to nine scale with respect to have well it represents performance on appropriate dimension. A rating of one represents ineffective performance; the top scale value indicates very effective performance. The second group of participant¶s usually assigns the scale values. Means and standards deviations are then calculated for the scale values assigned to each incident. Typically incidents that have standard deviations of 1.50 or less are retained. Step V: Producing the Final Instruments: About six or seven incidents for each performance dimension all having met both the retranslation and standard deviation criteria will be used as 28

behavioral anchors. The final BARS instrument consists of a series of vertical scales anchored by the final incidents. Each incident is positioned on the scale according to it mean value. Because the above process typically requires considerable employee participation, its acceptance by both supervisors and their subordinate may be greater. Proponents of BARS also claim that such a system differentiates among behavior, performance and results, and consequently is able to provide a basis for setting developmental goals for the employee. Because it is job specific and identifies observable and measurable behavior, it is more reliable and valid method for performance appraisal. Researchers, after surveying several studies on BARS, concluded that ³despite the initiative appeal of BARS, findings from research have not been encouraging´. It has not proved to be superior to other methods in overcoming rater errors or in achieving psychometric soundness. A specific deficiency is that the behaviors used are actively oriented rather than result oriented. This creates a potential problem for supervisor doing the evaluation, who may be forced to deal with the employees who are performing the activity but not accomplishing the desired goals. Further, it is time consuming and extensive to create BARS.

2) Assessment Centre:This method of appraising was first applied in German Army in 1930. Later business and industrial houses started using this method. This is not a technique of performance appraisal by itself. In fact it is a system or organization, where assessment of several individuals is done by various experts by using various techniques. In this approach individuals from various departments are brought together to spend two or three days working on individual or group assignment similar to the ones they would be handling when promoted. Observers rank the performance of each and every participant in order of merit. Since assessment centers are meant for evaluating the potential of candidates to be considered for promotion, training or development, they offer an excellent means for conducting evaluation process in an objective way. All assesses get an opportunity to show their talents and capabilities and secure promotion based on merit. Since evaluators know the position requirements intimately and are trained to perform the evaluation process in an objective manner, the performance ratings may find favor with majority of the employees. A considerable amount of 29

research evidence is available to support the contention that people chosen by this method through better than those chosen by other methods.

3) Human Resource Accounting:It deals with cost and contribution of human resources to organization. Cost of the employee includes cost of man power planning, recruitment, selection, induction, placement, training, development, etc. Employee contribution is the money value of the employee service which can be measured by labour productivity or value added by human resources. Cost of human resources can be taken as standard. Employee performance can be measured in terms of employee contribution to the organization. Employee performance can be taken as positive when contribution is more than the cost and performance can be viewed as negative if cost is more than contribution. Positive performance can be measured in terms of percentage of excess of employee contribution over the cost of employee. Similarly, negative performance can be measured in terms of percentage of deficit in employee contribution over the cost of employee. This % can be ranked to zero level. This technique has not developed and still it is in transition stage.

4) Management by Objectives:This method is given by ³Peter Ducker´, establishes results which workers or managers expected, by mutual agreement with their supervisors, to achieve during a particular period of time. Ideally, MBO takes into account the needs and goals of the organization, as well as those of the individual. Four steps depict the method: 1. Setting performance goals or targets. 2. Recording performance against goals 3. Counseling on progress against goals 4. Reviewing final results against goals.

30

5) Psychological appraisal:
Psychological appraisals are conducted to assess the employee potential. Psychological appraisals consists of (a)in-depth interviews,(b)psychological tests (c)consultants and discussions with the employee,(d)discussions with the superiors, sub-ordinates and peers, and (e)review of other evaluations. Evaluation is conducted in the areas of ± (a)employees intellectual abilities, (b)emotional stability, (c)motivational responses, (d)reasoning and analytical abilities, (e)interpretation and judgment skills, (f)sociability, (g)employees ability to comprehend the events and ability to foresee the future. The psychological appraisals results are useful for decision-making about (1) employee placement (2) career planning and development, and (3) training and development.

6) 360O FEEDBACK:
SUPERVISORS: Supervisors include superiors of the employee, other superiors having knowledge about the work of the employee and department head or manager. General practice is that immediate superiors appraise the performance which in turn is reviewed by the departmental head / manager. This is because supervisors are responsible for managing their subordinates and they have the opportunity to observe, direct and control the subordinate continuously. Moreover, they are accountable for the successful performance of their subordinates. PEERS: Peer appraisal may be responsible if the work group is stable over a reasonably long period of time and performs tasks that require interaction. However, little research has been conducted to determine how peers establish standards for evaluating others or the overall effect of peer appraisal on the group¶s attitude. SUBORBINATES: The concept of having superiors rated by subordinates is being used in most organizations today, especially in developed countries. Such a novel method can be useful in other organizational settings too provided the relationships between and subordinates are cordial. Subordinates¶ ratings in such cases can be quite useful in identifying competent superiors.

31

PROFILE OF AL SHIFA HOSPITAL
Al Shifa Hospital Pvt. Ltd., a Multi Super Specialty Tertiary Level Referral Hospital, established in 1989 as a NRI venture having 450 beds, over 30 disciplines of various specialties and super specialties with more than 60 consultants of National reputation. Al Shifa is a complete hospital providing total health care at National/International standards in its true sense with its team of highly skilled & experienced medical professionals with support work force of over 750 employees. Al Shifa provides treatment services to more than 200-300 patients of foreign nationality every year. We are an ISO 9001-2000 & ISO 14001-2004 certified hospital having one of the best Orthopedic and trauma care centers in South India, also the first hospital in Kerala to perform Computer Navigated Joint Replacement Surgeries. Al Shifa is also a centre for Cochlear Implantation and Kidney Transplantation. On humanitarian grounds, the management has also evolved a Charitable Trust with a great vision to help the poor, needy and people from the lower level of society availing facilities like free/concessional Dialysis, Kidney Transplantation and various other treatment expenses. Many well-wishers do also contribute for this magnanimous charitable service. Al Shifa Hospital Pvt. Ltd. is also accredited by the National Board of Examinations-Govt. of India, for P.G studies in various disciplines. The Directors of the Hospital have also formed a Trust in the name of Shifa Medicare Trust having Minority Status with main objective of the upliftment of professional education among the Socially and Economically backward area of Malabar. The Trust has established a number of Educational Institutions under Shifa Institute of Medical Sciences [SIMS] for various Courses like; Post Graduate, Degree and Diploma studies where over 1000 of students are successfully continuing their studies every year.Serve and care in the best way by providing the best quality treatment at an affordable cost is our strategy. The world is our domain and µservice to humanity¶ is our slogan. Over the years Al Shifa Group, headed by Mr. P. Unneen, Chairman & Managing Director, has carved for itself a name to reckon with creating an atmosphere conducive for a healthy and better tomorrow. We strongly believe that our success vest by the Grace of God Almighty. 32

BOARD OF DIRECTORS
Mr. P. UNNEEN ±MANAGING DIRECTOR Mr. K. T. ABDUL RASSAQUE ± FINANCE DIRECTOR Mr. P. HAMZA ± OPERATION DIRECTOR Mr. P. K. MOHAMMED HAJI ± PUBLIC RELATION DIRECTOR Dr. AHAMMED AMEEN ± MEDICAL DIRECTOR Dr. M. K. IBRAHIM ± OVERSEAS DIRECTOR

33

MISSION
"Quality Treatment at an affordable cost"

VISION
Providing best Patient experience, safety and outcome providing seamless healthcare services. Providing treatment faster, better at an affordable cost.

CORE VALUES
Compassion: We put you and your being at the center of all that we do. Treating with respect,
compassion and dignity.

Commitment: We uphold your trust by maintaining highest professional integrity and
standards.

Excellence: We will continually seek advancement and innovation to achieve better health care. Team Based Care: We dedicate and combine our skills, Knowledge, expertise and experience
for your sole benefit.

Value: We seek always to create and deliver value for you.

34

QUALITY POLICY
"To our patients the best" Signifies our commitment We focus on: -

‡ Providing best patient experience, safety and outcome. ‡ Providing seamless health care service. ‡ Providing treatment faster, better at affordable cost.

We pledge to enforce high standards and practices through continual improvement in the quality management system to assure that the services meet and exceed the expectations of our patients, client and the community.

ENVIRONMENTAL POLICY
AL SHIFA HOSPITAL PVT LTD is dedicated to provide better health, wellbeing and safety to its patients, employees, customers, community and the environment.

This is achieved through-

‡ Protecting natural habitats through efficient use of natural resources ‡ Reducing pollution to air water and land ‡ Promoting minimization of waste ‡ Conservation of natural resources

Further the hospital is committed to bring continual improvement to prevent pollution and compliance with all applicable legal and other requirements

35

MILESTONES
‡ 1989 : Inaugurated 75 bedded Al Shifa Hospital by Janab Syed Mohammed Ali Shihab Thangal

‡ 1992 : Upgraded bed Strength to 150

‡ 1994 : Inaugurated Al Shifa School of Nursing

‡ 1994 : Certified ³Baby Friendly Hospital´

‡ 1995 : Recognized training centre for Diploma in Pharmacy

‡ 1996 : Started Department of Urology

‡ 1997 : Inaugurated Al Shifa Scan Centre

‡ 1997 : Inaugurated 9 Storied Super Specialty Building and upgraded to 350 bedded

‡ 1998 : Commenced Department of Gastroenterology & Liver Diseases

‡ 2001 : Award winner of Kerala State Pollution Control Board

‡ 2001 : Accredited by National Board of Examinations for conducting PG training (Dip NB) in Orthopedics

‡ 2001 : Commenced Department of Nephrology & Dialysis unit

‡ 2002 : Established Al Shifa College of Nursing

36

‡ 2002 : Established Al Shifa College of Pharmacy

‡ Recipient of Gold Medal for the performances in Orthopedics

‡ Rajeev Gandhi Award of Excellence to Department of Gynecology & Department of Oral & Maxillofacial surgery

‡ Regularly conducting CME¶s, Seminars, & Medical Camps ‡ Regular participant of Quality Assesment Scheme of CMC Vellore for Laboratory medicine, also bagging the 18th rank

‡ 2003 : Inaugurated the Catheterisation Laboratory

‡ 2004 : Upgraded the hospital bed strength to 450

‡ 2004 : Signed MOU with the Ministry of Defiance ,New Delhi to provide cashless treatment to Ex Servicemen and their dependents enrolled in ECHS

‡ An elaborate division for Health Care Management

‡ 2005 : Established Al Shifa College of Paramedical Sciences

‡ 2006 : Inaugurated the First Blood Bank & Component Separation Unit in the Private Sector in South Malabar ‡ 2006 : Award from the State Pollution Control Board for the ³Best Big Hospital´ ‡ 2007 : Inaugurated Computer Navigated Joint Replacement (CNJR) , Ortho Pilot III. Second in India

37

‡ 2007 : An approved centre for performing Kidney Transplantation ‡ 2007 : Inaugurated the first Cochlear implantation centre in South Malabar ‡ 2008 : Started M.Pharm course ‡ Third Place Award from Kerala State Pollution Control Board ‡ Introduced the First Whole Body 16 Slice MDCT in South Malabar ‡ Regular participant of Quality Assessment Scheme of CMC Vellore for Laboratory medicine, also bagging the 2nd rank among the Elite group comprising of over 629 laboratories all the states of India and also Anadaman and Nepal. ‡ Empanelled to Employee State Insurance Corporation (ESIC)

38

ORGANIZATION POLICIES MANPOWER REQUIREMENT:
y To take specification for Job requirement in the prescribed format for all jobs opening in the Organization. y All the vacancies are displayed in the notice board for employees to apply. The same is to facilitate equal opportunities for employees of Organization. y y All openings are intimated to employment exchange. All vacancies arise, either due to resignations or new openings, first option is given to existing employees in the Organization and they will undergo for selection based on their job opening. y To competence requirement for all positions in the Organization the GM-HR should consult with the HOD¶S

SELECTION AND RECRUITMENT:
y The vacancies are identified in each Department and selection is made with the profile of the person needed for filling the vacancy. The first option is given to the existing employees. y For all openings, the HR Department personnel conduct preliminary interview and the ratings are given. y Whenever fresher are recruited for job opening, selection process includes, written test, wherein candidate is required to score 60% marks for further Interviews and Selections. y Short listed persons are called for Interviews by the Hospital Administrator for suitable place and date.

INDUCTION/ORIENTATION:
y y Introduce the employee to the staff. Explain him the Organization History, Hierarchy, Grade structure 39

y y

Appraise him the rules and regulations of the organization Put him under training in Departments to understand the role of each Department where he/she is going to work.

y

Maintain induction training record.

PERFORMANCE APPRAISAL:
y The performance Appraisal is carried out once every year for all associates and after the completion of one year for new recruits. y y Trainees will be assessed of their performance after completion of 3/6 months. After their potential appraisal they are recommended for promotion.

TRAINING:
y y At least 20 managers undergo Management development training in a year. To maintain record related to competence, education, awareness, and training for all associates. y y Induction, training is given for newly recruited personnel. On the job training is given to all staff depending upon recruitment.

FEED BACK:
After returning from the training the effectiveness of training is verified by the HOD and forwarded to General Manager-HR for perusal of Manager.

40

PERFORMANCE APPRAISAL SYSTEM IN AL SHIFA HOSPITALS
1. Purpose: To lay down policy guidelines for implementation of the Performance Management
System.

2. Scope: This policy will be applicable to all associates of Care except trainees, apprentices
and contract staff.

3. Responsibility: All HODs are responsible to ensure that the appraisals are completed on
time. HR Department will facilitate and monitor the process. The HR Department will also acquaint the HODs/appraiser/ appraises about the Performance Management System.

4. Accountability: The Unit HR in charge under the overall supervision of the HA will be
accountable for the appropriate implementation of the Performance Management System in the unit while the CHRD will responsible for its implementation at the Corporate and for associates at the senior and middle levels of management. Queries on matter of policy will be referred to Corporate HR for clarification.

5. Procedure:
5.1} Performance management is a method used to measure and improve effectiveness of associates at the work place. It is a system composed of several activities including goal setting, tracking changes, coaching, motivation and associate development. 5.2} The performance management cycle begins with goal setting. Performance is then tracked against the associate¶s goals and eventually appraised in a formal end of appraisal period meeting. An informal mid appraisal period review will also be held. The results of the formal appraisal will feed into the incentive/increment system. 5.3} It has been decided to adapt a Strategy Based Performance Management System. The schematic representation of the system is at Annexure 1. The model will have the following four phases : -

41

Performance Planning: At the beginning of the appraisal period the appraiser and appraisee
will get together for a performance planning meeting. In this session they discuss as to what the associate will achieve during the appraisal period. The objectives, Key Performance Indicators, the competency desired of the appraisee and the individual developmental plans are recorded on the Performance Planning Form and kept with the personal file of the associate that is maintained in the HR Department.

Performance Execution: Over the course of the appraisal period the associate works to
achieve the goals, objectives and key responsibilities. The appraiser coaches and provides feedback as well as creates conditions that motivates and resolves performance problems that arise. A semi-formal periodic review is held to review performance and set corrections in order to enable the appraisee achieve the laid down objectives.

Performance Assessment: This is the appraisal system wherein the supervisor/appraiser has
to fill out an Assessment Form. The Appraisal Forms and a copy of the Performance Planning Forms will be sent by the HR Department to the appraiser. . The completed appraisal form is reviewed by the supervisor senior (boss) and submitted to the HR Dept who in turn will scrutinize the same for its correctness. The performance assessment of the appraiser will be shown to the appraisee and signed by both. However the remarks/assessment of the Reviewing Officer will not be shown to the appraisee and will be kept confidential. This is a measure to bring in objectivity, as also avoid a µ one man report µ as well as even out the inflationary trend that is generally seen in appraisals that have to be shown to the appraisee. Appraisal forms of HOD (Unit) will also be endorsed by the Corporate Head in the staff / departmental channel of reporting.

Performance Review:

The appraiser and the appraisee meet and discuss the assessment.

They will also set a date to hold performance planning discussion for the next appraisal period, at which point performance appraisal starts anew.

42

6. Purpose of Performance Appraisal: A performance appraisal serves the following
purpose:6.1} Provides feed back to associates about their performance and encourages enhanced performance 6.2} Determines who gets incentive and promotion 6.3} Counseling of poor performers 6.4} Determines training and development needs 6.5} Confirming that good hiring decisions are being made 6.6} Facilitates layoff and downsizing decisions.

7) Types of Appraisal Forms:
Depending upon the managerial level, separate types of Appraisal Forms will be formulated by the Corporate HR Department and used for Senior Management, Mid Level Management and Junior Managerial Cadre. At the Executive Level only an Appraisal Card will be used for the assessment system.

8) Filing and Handling of Appraisal Forms:
The Appraisal Form is a privileged document. It should be treated with confidentiality. The receipt/dispatch of the Forms should be done in a secure/confidential envelope. The Form should finally get filed in the personal file of the individual.

9) Criteria for initiation of Appraisal Forms:
The following will be the norms for initiation of the Appraisals 9.1} The appraisee should have served for at least 90 days under the appraiser. In case he/she has not served for 90 days then the previous supervisor will be eligible to initiate the appraisal. In

43

case he/she has served for less than 90 days in Care then he/ she will be eligible for an appraisal in the succeeding appraisal period. 9.2} All appraisals will be reviewed and endorsed by the next senior in the line of reporting to the appraiser. 9.3} Appraisals of all HODs (at unit) will also be endorsed by the staff functional head at Corporate. 9.4} Associates below the grade of Manager (or equivalent designation) will not normally be eligible to endorse the appraisal. In case the appraiser is at a designation lower than that of a Manager then a special dispensation of the CHA/HA/Corporate Head should be taken to permit initiation. 9.5} In case the appraiser and appraisee are of the same designation then the next senior in line should initiate the appraisal. 9.6} Special endorsements can be made by the MD/ HA/COO/CEO/Chairman on any appraisal form Queries on eligibility of initiation should be addressed to Unit/Corporate HR for clarification.

10) Special Performance Reviews:
Special performance reviews can be initiated as necessitated by extraneous circumstances such as special achievements or review of trainee cadre managerial staff seeking to come onto the regular roles. In such cases approval of CHRD should be sought to initiate special appraisal reports.

11) Appraisal Period:
The appraisal period and dates for initiation/completion of Appraisal Forms and payment of increments will be as follows:-

44

Grade

Appraisal Period

DATE

Initiation Completion of Appraisals Forms Senior Management (G10-G12) Middle Level Management Junior Level Management Executive Cadre Nursing Cadre 01Oct-30Sep (next year) 01Oct 30Oct 01Jan-31Dec 01Jan 15Feb 01Apr-31Mar (next year) 01Apr 20Apr 01Apr-31Mar (next year) 01Apr 20Apr

Payment of Increment

July

June

01Jan-31Dec

01Jan

31Jan

May

April

November

45

12) Performance Rating:
Associates will be assessed by the appraiser on various individual qualities as well as their overall performance on ratings as under:12.1. Performance rating µA¶- Performance exceptional and consistently high level 12.2. Performance rating µB¶- Performance superior and consistently exceeds overall performance requirements 12.3. Performance rating µC¶- Performance satisfactory meets most parameters of performance requirements. Weaknesses offset by strong points. 12.4. Performance rating µD¶- Below satisfactory performance. However displays progress towards an enhanced performance 12.3. Performance rating µE¶- Poor performance due to being relatively new to assignment or definite weakness.

13) Performance Incentive:
Incentives will be paid once a year along with the annual increment. All incentives will be based on a pay-for-performance scheme. The performance incentive will be paid as merit pay and added to the base salary. As per overall rating of the Reviewing Officer, the appraiser will be authorized the following percentages of incentive:13.1 Performance Rating µA µ- 15% 13.2 Performance Rating µB µ- 12 % 13.3 Performance Rating µC µ- 10 % 13.4 Performance Rating µD µ- 08% 13.5 Performance Rating µE µ- 00%

46

14) Variable/ Fixed Component of Incentive:
The amount set aside for annual increment and performance incentive will depend on budgetary allocation. However the maximum amount that an associate can receive as incentive or increment will be 20 % of gross salary. The amount of increment/incentive that an associate can be paid will be as fixed ( i.e. assured ) component and variable ( ie as pay-for- performance ) component will depend on the managerial cadre and allocated as below:Grades Executive Level Junior Management Middle Management Senior Management Fixed Component 75% 60% 40% 25% Variable Component 25% 40% 60% 75%

15) Other Merit Incentive Options:
The company may decide to give other forms of merit incentives. They can be as follows:15.1 Annual Bonus 15.2 Team Incentives 15.3 Departmental Incentives 15.4 Ex gration payments 15.5 Associate Stock Ownership plan

16) Debarment from initiation of Appraisals:
Any associate who is under disciplinary proceedings will be debarred from initiation of appraisals. In such cases the next supervisor in the line of reporting will initiate.

47

17) Scrutiny of Appraisal Forms:
All initiated Appraisals will be subject to scrutiny by the HR Department. The HR Department will check the channels of reporting for its correctness, completion of forms in all respects and objectivity in reporting. In case of anomalies the HR. Department will get the same rectified and then appropriately filed in the personal file of the associate. The performance ratings will be separately recorded on a nominal roll and forwarded to Corporate HR duly authenticated by the Unit HR Head so as to impact the same in the salary of associates. 18) Representations against Appraisals: Associates can represent against the rating or any other aspect of the Appraisal. All representations will be made on an application. Comments of the appraiser, Reviewing Officer and HR Department will be obtained on the same and sent to CHRD for decision.

19) Performance/participation in Training Programmes:
Participation in training programmes by associates is mandatory. The participation/performance in training programmes will be evaluated and a record of the same maintained by the HR Department. The same will be endorsed in the Appraisal Forms. The performance in the training programmes will be considered while deciding whether the associate is capable of being promoted and assuming higher responsibilities.

48

DATA ANALYSIS
1) Do you understand the term Performance Appraisal? a) Yes b) No

Tabular representation of collected data:
SOURCE Yes No NO OF EMPLOYEES 26 04 PERCENTAGE 86.7% 13.3%

Graphical Representation of collected data:

100 80 60 40 20 0 No. of Employees percentage YES NO

Source: From the questionnaire given to the employees. Analysis: The above table reveals that 86.7% of the employees say that they understand the
term of performance appraisals, 13.3% of the employees say that they do not understand the term of Performance appraisals.

Interpretation: Most of the employees say that they understand the term performance
appraisals.

49

2) Is AL SHIFA Hospitals implementing Performance Appraisals? a) Yes b) No

Tabular representation of collected data:
SOURCE Yes No NO OF EMPLOYEES 28 2 PERCENTAGE 93.3% 6.7%

Graphical Representation of collected data:

100 80 60 40 20 0 No. of Employees percentage YES NO

Source: From the questionnaire given to the employees. Analysis: The above table reveals that 93.3% of the employees say that they agree that AL
SHIFA HOSPITAL implementing the performance appraisals, 6.7% of the employees say that not implementing the performance appraisals.

Interpretation: Most of the employees say that AL SHIFA HOSPITAL implementing the
performance appraisals.

50

3) Are you aware with the procedure of Performance Appraisal? a) Yes b) No

Tabular representation of collected data:
SOURCE Yes No NO OF EMPLOYEES 27 03 PERCENTAGE 90% 10%

Graphical Representation of collected data:

100 80 60 40 20 0 No. of Employees percentage YES [ NO

Source: From the questionnaire given to the employees. Analysis: The above table reveals that 90% of the employees say that they aware the procedure
of performance appraisal and remaining 10% of employees says that they are not aware the procedure of performance appraisals.

Interpretation: Most of the employees say that they know the procedure of performance
appraisals.

51

4) Are you satisfied with present Appraisal systems being followed in AL SHIFA Hospitals? a)Highly satisfied c)Satisfied b)Average d)Neutral

Tabular representation of collected data
SOURCE Highly satisfied Average Satisfied Neutral NO OF EMPLOYEES 3 9 11 7 PERCENTAGE 10% 30% 36.7% 23.3%

Graphical Representation of collected data:

40 30 20 10 0 NO OF EMPLOYEES Highly satisfied Average Satisfied Neutral

Source: From the questionnaire given to the employees. Analysis: The above table reveals that 10% of the employees say that they are highly satisfy
with the present procedure of Appraisal system,36.7% of employees are satisfied ,30% of employees are average satisfy, 23.3% of employees are in neutral position.

Interpretation: Most of the employees saying that they are satisfy with the present Appraisal
system followed by the Organization. 52

5) At what frequency Performance Appraisal system is evaluated? a) Promotion c) Annually b) After Probation d) All the above

Tabular representation of collected data:
SOURCE Promotion After Probation Annually All the above NO OF EMPLOYEES 2 2 25 1 PERCENTAGE 6.7% 6.7% 83.3% 3.3%

Graphical representation of collected data:

90 80 70 60 50 40 30 20 10 0 No. of Employees percentage

Promotion After Probation Annually All the above

Source: From the questionnaire given to the employees.
Analysis: The above table reveals that 83.3% of the employees say that AL SHIFA HOSPITAL performance appraisal system will evaluated at annually and 3.3% of employees are say that All the above,6.7% of employees are say that Promotion and after probation.

Interpretation: Most of the employees agree that the performance appraisal system will be
evaluated once in yearly. 53

6) Which you feel is more comfortable and advisable? a) Self appraisal system b) Confidential report system

Tabular representation of collected data:
SOURCE Self appraisal system Confidential report system NO OF EMPLOYEES 16 14 PERCENTAGE 53.3% 46.7%

Graphical representation of collected data:

60 50 40 30 20 10 0 No. of Employees percentage

self appraisal confidential

Source: From the questionnaire given to the employees. Analysis: The above table reveals that 53.3% of the employees say that they feel that self
appraisal system will be more comfortable and advisable, 46.7% of employees says that confidential report system will be more comfortable and advisable.

Interpretation: Most of the employees agree that Self appraisal system will be more
comfortable and advisable.

54

7) Do you receive your Performance Appraisal report after it is evaluated? a) Yes b) No

Tabular representation of collected data:

SOURCE Yes No

NO OF EMPLOYEES 12 18

PERCENTAGE 40% 60%

Graphical representation of collected data:

20 15 10 5 0 No. of Employees percentage Yes No

Source: From the questionnaire given to the employees. Analysis: The above table reveals that 40% of the employees say that they receive the appraisal
report after it is evaluated, 60% of employees says that they don¶t receive their appraisal report after evaluation yet to be done till now.

Interpretation: Most of the employees saying that they don¶t receive their appraisal report
after it is evaluated.

55

8) Who appraises your performance? a) HOD b) HR

Tabular representation of collected data:

SOURCE HOD HR

NO OF EMPLOYEES 28 2

PERCENTAGE 93% 7%

Graphical representation of collected data:

20 15 10 5 0 No. of Employees percentage HOD HR

Source: From the questionnaire given to the employees. Analysis: The above table reveals that 28% of the employees say that they appraised by HOD
& HR 2% of employees say that they appraised by HR.

Interpretation: Most of the employees saying that they are appraised by their Head of the
department and Hospital Administration.

56

9) Do you think present Performance Appraisal system need a Change? a) Yes b) No

Tabular representation of collected data:

SOURCE Yes No

NO OF EMPLOYEES 06 24

PERCENTAGE 20% 80%

Graphical representation of collected data:

25 20 15 10 5 0 No. of Employees percentage Yes No

Source: From the questionnaire given to the employees. Analysis: The above table reveals that20% of the employees say that they think that present
appraisal system need a change, 80% of employees say that no need of change yet to be done till now.

Interpretation: Most of the employees thinking that present appraisal system not to be change.

57

10) Performance Appraisal is used for? a) Identity training needs c) Recognize employee efforts b) promotions/demotions d) All the above

Tabular representation of collected data:
SOURCE Identity training needs Promotions / Demotions Recognize employee effort All the above NO OF EMPLOYEES 2 2 12 14 PERCENTAGE 6.7% 6.7% 40% 46.6%

Graphical representation of collected data:

14 12 10 8 6 4 2 0 NO OF EMPLOYEES

Identity training needs Promotions / Demotions Recognize employee efforts All the above

Source: From the questionnaire given to the employees. Analysis: The above table reveals that 02% of the employees say that performance appraisal
used for giving the promotions/demotions and identity training needs, 12% of employees saying that appraisal is used for the recognize employee efforts and remaining 14% of employees are saying that it is used for all the above.

Interpretation: Most of the employees are saying that performance appraisal is used for
identity training needs, promotions/demotions, recognize employees efforts. 58

11) Is there is a need of interactive sessions during Performance Appraisal between HOD and employees? a) Yes b) No

Tabular representation of collected data
SOURCE Yes No NO OF EMPLOYEES 28 02 PERCENTAGE 93.3% 0.7%

Graphical representation of collected data:

30 25 20 15 10 5 0 No. of Employees percentage Yes No

Source: From the questionnaire given to the employees. Analysis: The above table reveals that 93.3% of the employees are agree that their is a need of
interactive session during performance appraisal between the HOD and employee, 0.7% of employees are saying that there is no need of interactive.

Interpretation: Most of the employees are saying that it is compulsory need the interactive
session during performance appraisal between the HOD and employees.

59

12) Are you sure that you get some sort of benefits by offering Appraisals? a) Yes b) No

Tabular representation of collected data:

SOURCE Yes No

NO OF EMPLOYEES 26 04

PERCENTAGE 86.7% 13.3%

Graphical representation of collected data:

30 25 20 15 10 5 0 No. of Employees percentage Yes No

Source: From the questionnaire given to the employees. Analysis: The above table reveals that 86.7% of the employees are saying that they get some
benefits after appraisal, 13.3% of employees are saying that they don¶t get benefits after appraisals.

Interpretation: Most of the employees are agree that they are getting some sort of benefits
after appraised.

60

13) What methods are taken to improve the employee¶s performance? a) Training c) Motivation b) Counseling d) All the above

Tabular representation of collected data
SOURCE Training Counseling Motivation All the above NO OF EMPLOYEES 03 04 06 17 PERCENTAGE 10% 13.3% 20% 56.7%

Graphical representation of collected data:
20 15 Training 10 5 0 No. of Employees percentage Counseling Motiv ation All the abov e

Source: From the questionnaire given to the employees. Analysis: The above table reveals that 10% of the employees are saying that training is
improves the employee performance, 13.3% of employees are saying that counseling is used for improves the employees performance, 20% of employees are saying that motivation is used for the improves employees performance and remaining 56.7% of employees are saying that all the above methods are used for the improves the performance of the employees.

Interpretation: Most of the employees are agree that for improving the performance of the
employees all the methods should be used i.e., training, counseling and motivation. 61

14) How do you feel overall performance appraisal system followed by your Organization? a) Excellent c) Good b) very good d) Average

Tabular representation of collected data:
SOURCE Excellent Very good Good Average NO OF EMPLOYEES 03 04 16 07 PERCENTAGE 10% 13.3% 53.3% 23.3%

Graphical representation of collected data:

20 15 Excellent 10 5 0 No. of Employees percentage Very good Good Average

Source: From the questionnaire given to the employees. Analysis: The above table reveals that 10% of the employees says that over all appraisal system
is excellent, 13.3% of employees saying that it is very good, 53.3% of employees feel that it is good, 23.3% of employees feel that is was average.1

Interpretation: Most of the employees are feel that over all performance appraisal system is
good. 62

FINDINGS
y Most of the employees know about performance appraisal and few of them not aware of the performance appraisal. y All the employees agree that AL SHIFA HOSPITALS implementing the performance appraisals. y Most of the employees say that they know the procedure of performance appraisals and few of them don¶t know. y y In the AL SHIFA HOSPITALS implementing the Modern method. Most of the employees satisfied with the present appraisal system followed by the AL SHIFA HOSPITALS and few of them not satisfied. y y In this Organization performance appraisal evaluated once in yearly. Most of the employees agree that Self appraisal system will be more comfortable and advisable. y Performance feedback is not being implemented in the organization, presently only few employees are receiving performance feedback. y y y y The head of the department will appraise the performance of the employees. Most of the employees thinking that present appraisal system need to be change. Most of the employees thinking that Self Appraisal system is required. Most of the employees are saying that performance appraisal is used for identity training needs, promotions/demotions, recognize employee efforts. y Most of the employees are feel that 360 degrees appraisal system would be more effective than the present system. y Most of the employees are agree that they are getting some sort of benefits after appraised. y Most of the employees are saying that there is a need of an expert person in the H.R. department. y y Most of the employees are feel that overall performance appraisal system is good. Performance appraisal not been done for some categories of employees of the organization.

63

SUGGESTIONS
The awareness can be created among all the employees by conducting classes and interactive sessions about the Performance Appraisal. y y The organization should cover all categories of employees for appraisal system. Hence different forms should be designed for different categories of employees of the Organization. y By this the employees will know about their lacking and try to improve and their superior should counsel the employee about the Performance. y y Organization should give feedback to all levels of employees. Organization should focus on performance feedback and it should be communicated for all the employees of AL SHIFA Hospitals. y y Organization should give scope for interaction between superior and subordinate. Organization should appoint an expert in appraisal to make appraisal authentic and fool proof. y Performance appraisal should be done for the lower level employees also, so that they can work sincerely. y Periodical appraisal helps the company to compare employee¶s performance and to take apt decisions for further improvement. y Annual performance appraisals evaluate the role of the employee in the organizational development and also monitoring the standard, expectations, objectives, efficiency in handling task and responsibilities in a period of time. y Each employee should evaluate by his supervisor and to discuss each other to set objectives for upcoming evaluation. y This discussion should cover the review of overall progress, problems encountered, performance improvement possibilities, long term career goals, specific action plan about job description and responsibilities, employee development interest and needs, to concentrate specific areas of development, to review performance objectives and performance standard, ongoing feedback and periodic discussions.

y

64

CONCLUSION
y Performance appraisal refers to the assessment of an employee¶s actual performance, behavior on their jobs, and his or her potential for future performance.

y

Appraisals has several objectives but the main purposes are training needs, to assess training needs, to effect promotions, and to give pay increases.

y

Employees have to understand about his or her roles and become clear about his functions, he or she understands his or her own strengths and weaknesses.

y

Performance appraisal should cover at all levels of the employee¶s but it covers only few levels. Not only few employees are aware of performance appraisal all the employees should be aware. Appraisal needs support of all levels of employees.

y

The management has to make performance appraisal understand and clear about questionnaire to every employee.

y

Organization has to maintain proper communication between superior and subordinate. Which leads to organizational effectiveness and employee well being. Organizational relations also been maintained.

y

The quality of work in the organization since the quality of work depends on the performance of the employee.

y

The term ³Performance Appraisal´ is concerned with the process of valuing a person¶s worth to an organization with a view to increasing it.

65

BIBILIOGRAPHY
³HUMAN RESOURCE MANAGEMENT´ ASWATHAPPA.K ³HUMAN RESOURCE MANAGEMENT AND INDUSTRIAL RELATIONS´ SUBBA RAO.P ³APPRAISING AND DEVELOPING MANAGERIAL PERFORMANCE´ ³RAO, T.V´ ³PERFORMANCE MANAGEMENT´ ³PREM CHADHA´

Websites:
www.alshifahospital.com www.google.com {www.changingminds.org www.performance-appraisal.com}

66

ANNEXURE
Questionnaire
Dear Sir/ Madam, I am MBA student of Adhiyamaan college of engineering, Hosur And presently doing a Major project in ³A STUDY ON THE CONCEPT OF ³PERFORMANCE APPRAISAL´ AT AL SHIFA HOSPITAL´. I request you to kindly fill the questionnaire below and I assure you that the data generated shall be kept confidential. 1) Do you understand the term Performance Appraisal? a) Yes b) No

2) Is AL SHIFA Hospital implementing Performance Appraisal¶s? a) Yes b) No

3) Are you aware with the procedure of Performance Appraisal? a) Yes b) No

4) Are you satisfied with present Appraisal system being followed in AL SHIFA Hospital? a) Highly satisfied c) Average satisfy b) Satisfied d) Neutral

5) At what frequency Performance Appraisal system is evaluated? a) Promotion c) Annually b) After Probation d) All the above

6) Which you feel is more comfortable and advisable? a) Self appraisal system b) Confidential report system

7) Do you receive your Performance Appraisal report after it is evaluated? a) Yes b) No 67

8) Who appraises your performance? a) HOD b) HR

9) Do you think present Performance Appraisal system need a Change? a) Yes b) No

10) Performance Appraisal is used for a) Identity training needs c) Recognize employee efforts b) promotions/demotions d) All the above

11) Is there is a need of interactive sessions during Performance Appraisal between HOD¶s and employees? a) Yes b) No

12) Are you sure that you get some sort of benefits by offering Appraisals? a) Yes b) No

13) What methods are taken to improve the employee¶s Performance? a) Training c) Motivation b) Counseling d) All the above

14) How do you feel overall Performance Appraisal system followed by your organization? a) Excellent c) Good b) very good d) average

15) Give me any suggestions on Performance Appraisal System in AL SHIFA.

68