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HRM Project

AnalyzingPerformanceAppraisal System

“Vital to every operation is co-operation”. We really agree to this wonderful
quotation putforth by Mr. Frank Tyger. This project was successful due to the
co-operation extended by people who have truly contributed towards it. We
gratefully acknowledge Prof. ______ who’sdeep sharing and synergy has
moved us many levels beyond our own thinking. We want tothank the
management of various companies who gave us the permission to conduct
research.We would also like to thank all the employees and HR executives who
empowered us withvaluable information. And finally to those whose lives and
writings has come the wisdom of the ages. We have tried to learn from your

Appraisal is a continuous process and done annually as a formal exercise
completionof the financial year. Appraisal has tremendous motivational impact
on people throughmeaningful feedback and is a powerful tool for recognition.
This project explains performance appraisal system and tries to find out how
efficiently Performance Appraisal isconducted. And if performance appraisal
doesn’t meet its objective then, what are the factorscausing failure.


In the business world investment is made in machinery, equipment and service
s. Quitenaturally time and money is spent ensuring that they provide what
their suppliers claim. Inother words the performance is constantly appraised
against the results expected.When it comes to one of the most expensive
resources companies invest in, namely people,the job appraising performance
against results is often carried out with the same objectivity.Each individual
has a role to play and management has to ensure that the
individual’sobjectives translate into overall corporate objectives of the compan
y. PerformanceManagement includes the performance appraisal process which
in turn helps identifying thetraining needs and provides a direction for career
and succession planning.

1.2 What is Performance?
Performance is synonymous with behaviour; it is what people actually do. Perf
ormanceincludes those actions that are relevant to the organizational growth
and can be measured interms of each individual’s proficiency
(level of contribution). Effectiveness Performance
refers to the evaluation of results of performance that is beyond the influence
or control of theindividual.
1.3 How is Performance managed?
Good performance by the employees creates a culture of excellence, which
theorganization in the long run. The activity includes evaluation of jobs and pe
ople both,managing gender bias, career planning, and devising methods of
employee satisfaction etc.the efforts are to make to generate the individual’s
aspirations with the objectives of theorganization. Organization has to clear
the way of career advancements for talented andhardworking people. Fear of
any kind from the minds of the employees should be removed sothat they give
best to their organization. Allow free flow of information.
Communicationnetwork should be designed in such a way no one should be
allowed to become a hurdle. Thisenables the managers to take correct
decisions and that too quickly.

1.4 Why Performance Appraisal?????
Today’s working climate demands a great deal of commitment and effort from
employees,who in turn naturally expect a great deal more from their
employers. Performance appraisalis designed to maximize effectiveness by
bringing participation to more individual level inthat it provides a forum for
consultation about standards of work, potential, aspirations andconcerns. It is
an opportunity for employees to have significantly greater influence upon
thequality of their working lives. In these times of emphasis on “quality”, there
is a naturalequation: better quality goods and services from employees who
enjoy better quality “goodsand services” from their employers.Performance
appraisal must be seen as an intrinsic part of a manager’s responsibility and
notan unwelcome and time-consuming addition to them. It is about improving
performance andultimate effectiveness.

Performance appraisal is a systematic means of ensuring that managers and
their staff
meetregularly to discuss post and present performance issues and to agree wh
at future isappropriate on both sides.This meeting should be based on clear
and mutual understanding of the job in question andthe standards and
outcomes, which are a part of it. In normal circumstances, employees

should be appraised by their immediate managers on one to one basis. Often
the distinction between performance and appraising is not made. Assessment
concerns itself only with the past and the present. The staff is being appraised
when they are encouraged to look ahead toimprove effectiveness, utilize
strengths, redress weaknesses and examine how potentials andaspirations
should match up.It should also be understood that pushing a previously
prepared report across and desk cursorily inviting comments, and expecting it
to be neatly signed by the employee is notappraisal - this is merely a form
filling exercise which achieves little in terms of giving staff any positive
guidance and motivation.THE APPRAISAL OF PERFORMANCE


Improving the ability of the jobholder;

Identifying obstacles which are restricting performance

Agreeing a plan of action, that will lead to improved performance. It is widely
accepted that the most important factor in organization effectiveness
is theeffectiveness of the individuals who make up the organization. If every
individual in theorganization becomes more effective, then the organization
itself will become more effective.The task of reviewing situations
and improving individual performance must therefore be akey task for all
managers.For appraisal to be effective, which means producing results for the
company, each manager has to develop and apply the skills of appraisalThese
are: -

Setting standards
on the performance required, which will contribute to theachievement of
specific objectives

Monitoring performance
in a cost –effective manner, to ensure that previously agreed performance
standards are actually being achieved on an ongoing basis.

Analyzing any differences
between the actual performance and the required performance to establish
the real cause of a shortfall rather than assume the fault to bein the jot holder.

having a discussion with the jobholder to verify the true cause of ashortfall, a
developing a plan of action, which will provide the performance,
requiredAppraisal can then become a way of life, not concerned simply with
the regulation of rewardsand the identification of potential, but concerned
with improving the performance of thecompany. The benefits of appraisal in
these terms are immediate and accrue to the appraisingmanager, the
subordinate manager/employee, and to the company as a whole.

Statement of the Problem:
Performance appraisal is a process of assessing, summarizing and developing t
he work performance of an employee.

In order to be effective and constructive, the performancemanager should
make every effort to obtain as much objective information about theemployee
's performance as possible. Low performance can push the organization back
intoday’s tough competition scenario. The project is aimed at analyzing the per
formanceappraisal in companies.
The various objectives of our research are as follows:To examine why an
appraisal system is important.To study existing appraisal system in various
organizations across sectors like BPO, IT &Telecom.To find the expectation of
appraiser and appraiseeTo determine the satisfaction level of the appraiseeTo
reveal the various loopholes in the appraisal system if anyTo find the
consequences of an inappropriately conducted appraisal system
Research Methodology:
The data source:
Primary as well as Secondary.
The research approach:
Survey Method.
The research instrument:
The respondents:
The Managers & Employees of various organizations.The primary data was
collected with the help of survey information. A concise questionnairewas
prepared keeping in mind the information specifications.