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This is to certify that the project report entitled “ Performance Appraisal System At Lotus Bawa Ltd” submitted by Ms.Ekta Manocha is a bonafide piece of work, conducted under my direct supervision and guidance. No part of this work has been submitted for any other degree of any other university. The data sources have been duly acknowledged. It may be considered for evaluation in partial fulfilment of the requirement for the award of degree of Master of Business Administration.
Date: Ms.Ritika Mahajan Lect. In Management
Performance Appraisal is a process 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 This project is undertaken to study the performance appraisal system at lotus bawa ltd.. . There are two primary purposes of performance appraisal: evaluative and developmental. The evaluative purpose is intended to inform people of their performance standing. The collected performance data are frequently used to reward high performance and to punish poor performance. The developmental purpose is intended to identify problems in employees performing the assigned task. The collected performance data are used to provide necessary skill training or professional development. So performance appraisal is needed in every organization 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).
It gives me a great satisfaction to successfully complete the project under the tutelage of eminent and worthy teachers. I am indebted to Senior HR Executive, Crnl. Multani of Lotus Bawa Ltd and the Director. Dr.Balram Dogra APEEJAY Institute of management for offering me the chance to work on the project to utilize and exhibit my skills. I also take this opportunity to prefer my deep gratitude to my project guide Ms. Ritika Mahajan, who theoretically rigour constructive criticism and creative inputs proved invaluable during the project. I am also very thankful to my friends for their remarks and valuable assistance. Dated: EKTA MANOCHA
CHAPTER – 1
INTRODUCTION TO COMPANY
It started as a small venture in tannery and has since grown and diversified into Leather Tanneries. Manjit Bawa Sukhdeep Singh Bawa (Managing Director) (Director Marketing) (Director) (Partner) v . Bawa Atamjit Singh is the Managing Director and is from 3rd generation in the family Business. Soles. Main contact persons are as under: Bawa Atamjit Singh Bawa Simerjit Singh Mrs. Heels. Uppers and Complete Shoe Making.SARUP TANNERIES LTD Baw a group was established in 1951.
the technical collaboration with dubarry of irreland was implemented for the manufacture of the complete shoes for men and women sarup tanneries limited also obtained right to distribute there products in the domestic market. sarup tanneries limited signed an agreement with lotus limited of England where lotus will carry on the business of manufacture as well as distribution of footwear and sarup tanneries limited will acquire the rights of footwear which are of lotus manufacture. With dubarry of Ireland. This is the buy back agreement where the reebok buys back the entire produce. This is a buy back agreement. Upon the commencement of the agreement sarup tanneries limited entered the domestic market under the brand name of lotus bawa.in 1995. Future plans and expansions vi .in july 1994. With reebok on USA in 1996 sarup tannries limited signed a agreement with reebok for manufacture of soles but later they started manufacturing the complete shoes for reebok upon the design given to it.INTRODUCTION TO LOTUS BAWA With lotus of England. produced for it under the guidelines.
vii . They can therefore handel philon soles for both for stock fitting as well as for assembly. Eva injection moulding machineIn the next few months they have going to have there own EVA injection modelling machine which has a capacity to make about 1000 soles per day. In the next few months they wil Stock facility in:.surup tanniries limited have got strong design department where four designers are continuously developing new designs and models. They have recently setup a stock fitting facility along with UV machine.Designinig and pattern cutting.
ltd is well known Indian company .The main objectives of the company are To purchase the raw hides and skins and convert it into finished or semi finished or semi. repair. improve. plant . To acquire from any person or company technical information. machinery tools materials substances which this company is competent to carry on. exchange let out on hire . import. To buy sell. plants . manufacturing and operating data. leather board and allied products.COMPANY’S PROFILE Lotus Bawa Co. llayout and blueprints useful for the design. export and deal in all factories works. distributors or as commission agents. alter. know how processes. viii . To open retail stores for selling goods manufactured by company and similar goods of other manufacturers which the company may purchase and deal in as principles or as an agents. deal and export leather goods. To deal in hides. skins and leather In addition to above this company has the following objectives which are incidental or ancillary to the attainment of the main objectives. erection and operations of the plant required for any of the business of the company and to acquire and grant of license and other rights and benefits in the forgoing matters and things. manufacture.finished leather To manufacture. engineering.
These machines are periodically checked to insure accuracy and consistency in results. They can therefore handel philon soles for both for stock fitting as well as for assembly. transactions and operations of all kinds in connection with any of the business of the company. 1. quality inspection and audit is also carried out to maintain the performance of the company in global market.K) membership. Has been awarded an ISO-9002 certificate by under writers laboratories incorporation. Eva injection moulding machineIn the next few months they have going to have there own EVA injection modelling machine which has a capacity to make about 1000 soles per day. Certificate has been given to them for their quality products. Quality awareness Bawa group is dedicated to become one of the leading manufacturers. The tannery has its own laboratory to insure that correct type of leather is made for use by the shoe units. Because of high quality products. To proquore the registration or recognition of the company in or under the laws of any place outside India. processes or information on the company or which may acquire or proposed to acquire in connection with its business. They strive to be the best in every aspect of their business and their obligations towards the society. ISO 9002 Certificate. Leather testing machinery has also been imported from Satra. To aid for surmountine of industrial or labour problems or troubles of the promotion of industry or trades. Satra Technology and centre(U. high price is charged and is accepted by the buyer all over the world. ix . New York. Stock fitting facilityThey have recently setup a stock fitting facility along with UV machine. Has Satra technology membership which keeps the company abreast with the latest shoe manufacturing technology. In addition to it.Sarup tenneries ltd.Sarup Tenneries ltd.To undertake financial and commercial obligations. discoveries. Leather shoe uppers and complete shoes. Their main aim is customer satisfaction by supplying quality products every time and adhering strictly to the delivery schedule. inventions. To expand money in experimenting on and testing or seeking to improve any patent rights.
most of its income is derived from selling into retailers. Retailers tend to offer a very similar experience to the consumer. The business could also be developed internationally.Lotus Bawa is make goo shoes. Some would argue that in youth culture especially. There are x . • . like it or not. They then manufacture wherever they can produce high quality product at the lowest possible price. . The brand is fiercely defended by its owners whom truly believe that Lotus Bawa shoes are not good. • The retail sector is very price sensitive. the income of the business is still heavily dependent upon its share of the footwear market. . • The organization does have a diversified range of sports products. Such high value items do tend to have associated with them. However. emerging markets such as China and India have a new richer generation of consumers.kids wear . • Lotus Bawa is a very competitive organization. • • • Product development offers Lotus Bawa many opportunities. building upon its strong global brand recognition. Opportunities. Strengths. sunglasses and ladies formal wear and party wear. This may leave it vulnerable if for any reason its market share erodes. This creates its own opportunities. Lotus Bawa is strong at research and development. However. as is evidenced by its evolving and innovative product range. consumers that wear shoes of lotus bawa do not always buy it to participate in sport.high heels. There are many markets that have the disposable income to spend on high value sports goods. since product could become unfashionable before it wears out i. For example. consumers need to replace shoes. Inc.It has a healthy dislike of is competitors.e. • Lotus Bawa provides us with every category of shoes whether casual for men and women and formal wears.Lotus Bawa is a global brand.SWOT Analysis Lotus Bawa Ltd. There is also the opportunity to develop products such as sport wear. high profits. At this time they are making shoes for every company like reebok and addidas. Lotus Bawa does have its own retailer in jalandhar.flat range. Weaknesses. However.
So if one store charges a price for a pair of sports shoes. and buy the cheaper of the two. The market for sports shoes and garments is very competitive.also global marketing events that can be utilised to support the brand such as the World Cup (soccer) and The Olympics. Such an exposure could mean that Lotus Bawa may be manufacturing and/or selling at a loss. Such consumer price sensitivity is a potential external threat to Lotus Bawa • xi . This is an issue that faces all global brands. Competitors are developing alternative brands to take away Lotus Bawa market share. the consumer could go to the store along the street to compare prices for the exactly the same item. It buys and sells in different currencies and so costs and margins are not stable over long periods of time. • • Lotus Bawa is exposed to the international nature of trade. As this market is a price competitor the consumer search for low price products This ultimately means that consumers are shopping around for a better deal. The model developed is now commonly used and to an extent is no longer a basis for sustainable competitive advantage. Threats.
INTRODUCTION TO PERFORMANCE APPRAISAL xii .
. says Dulewicz (1989). In the scale of things historical. for the same may be said about almost everything in the field of modern human resources management. as well as about oneself. As a distinct and formal management procedure used in the evaluation of work performance. the practice of appraisal is a very ancient art. it might well lay claim to being the world's second oldest profession! There is. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. That xiii .Figure 1." Appraisal. fair. appraisal really dates from the time of the Second World War . Without a structured appraisal system. Yet in a broader sense..1 Performance Appraisal The history of performance appraisal is quite brief. is both inevitable and universal. naturally. informally and arbitrarily. it seems. Performance appraisal systems began as simple methods of income justification. But this is not very helpful. ethical and legal problems in the workplace. a basic human tendency to make judgements about those one is working with. there is little chance of ensuring that the judgements made will be lawful. including subordinates. defensible and accurate. The human inclination to judge can create serious motivational. ". In the absence of a carefully structured system of appraisal.not more than 60 years ago. people will tend to judge the work performance of others.
Pay rates were important. xiv . if any. The general model of performance appraisal. should provide the only required impetus for an employee to either improve or continue to perform well. As a result. as it is known today. could also have a major influence. that usually takes the form of a periodic interview (annual or semi-annual).is. it failed. These observations were confirmed in empirical studies. in which the work performance of the subordinate is examined and discussed. For example. On the other hand. such as morale and self-esteem. Modern Appraisal Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor. but they were not the only element that had an impact on employee performance. began from that time. early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. Little consideration. the traditional emphasis on reward outcomes was progressively rejected. was given to the developmental possibilities of appraisal. Sometimes this basic system succeeded in getting the results that were intended. It was felt that a cut in pay. yes. a cut in pay would follow. If an employee's performance was found to be less than ideal. In the 1950s in the United States. or a rise. It was found that other issues. the potential usefulness of appraisal as tool for motivation and development was gradually recognized. a pay rise was in order. but more often than not. appraisal was used to decide whether or not the salary or wage of an individual employee was justified. if their performance was better than the supervisor expected. The process was firmly linked to material outcomes.
Rather than an opportunity for constructive review xv . there are many different opinions on how and when to apply it. to help determine reward outcomes.researchers. who believe that performance appraisal has many important employee development uses. Whether this is an appropriate use of performance appraisal . dismissal or decreases in pay. management commentators.but not all .In many organizations . This group believes that the linkage to reward outcomes reduces or eliminates the developmental value of appraisals. psychometricians . There are those. There are many reputable sources . the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases.the assignment and justification of rewards and penalties .. By the same token. Controversy.appraisal results are used. for instance. At the other extreme. there are many strong advocates of performance appraisal. appraisal results are used to identify the poorer performers who may require some form of counseling.is a very uncertain and contentious matter.such as pay rises and promotions. bonuses. While all endorse the use of performance appraisal..who have expressed doubts about the validity and reliability of the performance appraisal process. Controversy Few issues in management stir up more controversy than performance appraisal. and promotions. demotion. or in extreme cases. Some view it as potentially ". either directly or indirectly. the most crucial aspect of organizational life Between these two extremes lie various schools of belief. That is. Some have even suggested that the process is so inherently flawed that it may be impossible to perfect it. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay). but scorn any attempt to link the process to reward outcomes .
They work together on a daily basis and may. For example. in that situation. mix socially. soured relationships and productivity declines.and encouragement.which are not an unlimited resource . Nor is the desire to distort or deny the truth confined to the person being appraised. at times. Rather than feeling relieved.is the only process available to help achieve fair. Many appraisers feel uncomfortable with the combined role of judge and executioner. xvi . Appraisers often know their appraisees well. they knew that their next pay rise or a much-wanted promotion was riding on an appraisal result? Very likely. effort and results. and are typically in a direct subordinate-supervisor relationship. The advocates of this approach say that organizations must have a process by which rewards . giving an appraisal result that has the direct effect of negating a promotion is another. many people would deny or downplay their weaknesses. decent and consistent reward outcomes. On the other hand. The result can be resentment and serious morale damage.and are suspicious and disappointed when told this is not the case. There is a critical need for remunerative justice in organizations. how many people would gladly admit their work problems if. Performance appraisal . or that the appraisal process is a sham and waste of time. there is a strong rival argument which claims that performance appraisal must unequivocally be linked to reward outcomes. punitive and harrowing. It has also been claimed that appraisees themselves are inclined to believe that appraisal results should be linked directly to reward outcomes .whatever its practical flaws . Such reluctance is not difficult to understand. leading to workplace disruption. the reward-linked process is perceived as judgmental.may be openly and fairly distributed to those most deserving on the basis of merit. appraisees may suspect that they are not being told the whole truth. Suggesting that a subordinate needs to brush up on certain work skills is one thing. at the same time.
Measurement items in the xvii . the PA system must be able to consistently produce reliable and valid results. There are two primary purposes of performance appraisal: evaluative and developmental. because their reactions to the appraisal process are significantly different depending on the intended purpose. The collected performance data are used to provide necessary skill training or professional development. resulting in the total waste of the valuable human assets a company has. The developmental purpose is intended to identify problems in employees performing the assigned task. and motivating and maintaining a quality work force by adequately and properly rewarding their performance. The purpose of performance appraisal must be clearly communicated both to raters and ratees. a human resource management system falls apart. Critical Criteria of Developing a Pa System In order for performance appraisal information to be useful. The information obtained through performance appraisal provides foundations for recruiting and selecting new hires. Without a reliable performance appraisal system.Performance Appraisal Performance appraisal (PA) is one of the important components in the rational and systemic process of human resource management. The collected performance data are frequently used to reward high performance and to punish poor performance. Failure to inform about the purpose or misleading information about the purpose may result in inaccurate and biased appraisal reports. training and development of existing staff. The evaluative purpose is intended to inform people of their performance standing.
It is important to make sure that the appraisal items are really measuring the intended performance or target behavior. Traits. But traits are not always directly related to job per formance. The most frequently used appraisal criteria are traits. Many employees are assessed according to their traits. performance is so broadly defined or so conceptual in nature— such as ensuring public safety in the police de partment—that it is hard to come up with reliable performance measures. if the number of traffic violation tickets issued is an item in performance appraisal of police officers. What to Evaluate The first important step in developing a PA system is to determine which aspects of performance to evaluate.performance appraisal system must be designed in such a way that the results of rating are consistent regardless of the raters and the timing of the assessment. it is the most appropriate factor to use in evaluating performance. frequently negative. Such behavior-focused assessment encourages employees to adopt desirable behavioral patterns in the workplace. and abilities. the PA system encourages the wrong kind of work behaviors and produces unintended. When information about task outcomes is readily available. it encourages them to sit on a corner of a street and pull over as many violators as possible during heavy traffic hours. When an organization has a clear and measurable goal as in the case of a sales force. Behaviors. Traits are relatively easy to assess once a rater gets to know ratees. may become secondary to issuing a large number of tickets for many officers. attitudes. desirable behaviors can be identified and assessed in the belief that such behaviors lead to successful performance. Another critical criterion in developing a PA system is the validity of the measurements. skills. and task outcomes. behaviours. Trait-based assessment lacks validity and thus frequently raises legal questions. which is public safety. aptitudes. The true purpose of a police force. Task outcomes. For many jobs. this approach is xviii . organizational outcomes. If they are not. In such cases. For instance. such as personality.
Some companies find that subordinates are in an excellent position to observe and evaluate their managers' performance. Anonymity of the evaluators is key to the successful use of subordinates for objective evaluation. When sales staff narrowly focus on target sales figures to increase their performance measure. Many companies systematically collect performance information from customers. However. Who Evaluates? The most common raters of performance are employees' immediate supervisors. especially when it comes to measuring effective management of their department. customers. the immediate supervisor may build up a fixed impression about each employee and use it every time he or she has to evaluate performance. such evaluation may turn into a popularity contest. Accurate and objective assessment may not be obtained if employees are fearful of possible retaliation from their supervisors. Peer pressure is sometimes a powerful motivator in encouraging teamwork among members. Self-assessment is also a useful xix . They are also responsible for employees' work. Their evaluation is a powerful tool in motivating employees to achieve successful and timely completion of tasks. Customer satisfaction is vital to a company's success and can be used in performance appraisal. Other raters who are frequently used in some companies include peers. Peer evaluation is particularly useful when teamwork and collegiality are important to successful task performance. and the employees themselves. it has its own pitfalls. This may result in poor customer service on the floor.recommended. There is a problem if employee behaviors are not directly related to the task out-come. However. as a result of working together over a long time with the same employees. they are encouraged to help a few large-volume customers and to ignore many smaller buyers. typically through anonymous surveys and interviews. for example. who are usually in the best position to know and observe the employees' job performance. While there is merit in asking subordinates to evaluate how they are managed. Too narrow a focus on measuring out-come only sometimes results in unintended negative consequences.
for example.2 PROCESS OF PERFORMANCE APPRAISAL Establishing performance standards: Appraisal systems require performance standards. standards should relate to the desired results of each job. They must be measurable within certain time and cost consideration.means. Warner Lambert. AT&T. including General Electric. These standards should be set after thorough analysis of job. goals must be written down. is becoming increasingly popular among many American corporations. This multirater evaluation.5000 per month. To be useful. it is important to use different raters or a combination of multiple raters depending on the goal of a performance appraisal system. and Mobi Figure1. Since job performance is multidimensional in nature. or so-called 360-degree feedback system. which serve as a benchmark against which performance is measured. the regional sales officer may be asked :The sales of color television sets in ghaziabad must increase by 1000 per month in the next 6 months and the budget toward promotion expenses would Rs. Performance standards must be clear to both the appraiser and the appraisee. especially when the performance appraisal is intended to identify the training and development needs of potential employees. Criteria for identifying and writing good performance goals xx . Each of these raters contributes to assessing certain aspects of performance.
iii. objective criteria include quality of production. subjective performance measures are ratings that are based on the personal standards or opinions of those doing the evaluation. the appraiser who does the appraisal and the appraisee whose performance is being evaluated. and socio-cultural values of the environment. oral reports and written reports. this is not the case with middle level positions that are complex and vague. four common sources of information which are generally used by managers regarding how to measure actual performance are observation.i. performance measures may be objective or subjective. xxi . For this purpose performance standards must be communicated to appraisee and their reactions should be noted down right away. Measure actual performance: After the performance standards are set and accepted . degree of training needs and accidents in a given period. statistical reports. iv. The appraiser should prepare job description clearly. This require the use of dependable performance measures. Both are expected to do certain things. absenteeism. objective performance measures are indications of job performance that can be verified by others and are usually quantitative. help the appraisee set his goals and targets.the next step is to measure actual performance. the ratings used to evaluate performance. performance measures to be helpful must be easy to use. subjective criteria include rating by superiors. offer coaching and guidance to the appraisee whenever required and reward good results. reliable. length of service etc. analyse results objectively. it should be noted here that objective criteria can be laid down while evaluating lower level jobs which are specific and defined clearly. and report on the critical behaviours that determines performance. If necessary these standards must be revised or modified. ii. overall goals. the appraisee should be very clear about what he is doing and why he is doing it. and are not verifiable by others. What is the task to be accomplished? What will it look like when it is accomplished? When it must be accomplished? What are the cost considerations? Communicate the standards: performance appraisal includes at least two parties.
Compare actual performance with standards and discuss the appraisal: Actual performance may be better than expected and sometimes it may go off the track. the assessment of another person’s contribution and ability is not an easy task. any appraisal based on subjective criteria is likely to be questioned by the appraisee and leave him quite dejected and unhappy when the appraisal turns out to be negative. immediate action sets things right and get things back on track whereas the basic corrective action gets to the source of deviations and seeks to adjust the difference permanently. while other destroys the root of the problem permanently. basic corrective steps seeks to find out how and why performance deviates. It has serious emotional overtones as it effects the self esteem of the appraisee.if necessary: Corrective action is of two types: one puts out the fires immediately. Figure 1.3 Methods Of Performance Appraisal METHODS OF PERFORMANCE APPRAISAL xxii . whatever be the consequences there is a way to communicate and discuss the final outcome. Taking corrective action .
they seek to measure employee performance by examining the extent to which predetermined work objectives have been met.1. xxiii . That is. Results Method Management By Objectives (MBO) The use of management objectives was first widely advocated in the 1950s by the noted management theorist Peter Drucker. MBO (management by objectives) methods of performance appraisal are resultsoriented. Usually the objectives are established jointly by the supervisor and subordinate. An example of an objective for a sales manager might be: Increase the gross monthly sales volume to $250.000 by 30 June.
they can lead to unrealistic expectations about what can and cannot be reasonably accomplished. • Supervisors and subordinates must have very good "reality checking" skills to use MBO appraisal methods. Typically they do not rely on others to locate and specify their strengths and weaknesses. They are expected to monitor their own development and progress. But on the downside. the MBO method concentrates on actual outcomes. to identify the skills needed to achieve the objective. then he or she has demonstrated an acceptable level of job performance. • MBO advocates claim that the performance of employees cannot be broken up into so many constituent parts .Once an objective is agreed. that is. They will need these skills during the initial stage of objective setting.as one might take apart an engine to study it. Advantages The MBO approach overcomes some of the problems that arise as a result of assuming that the employee traits needed for job success can be reliably identified and measured. Disadvantages MBO methods of performance appraisal can give employees a satisfying sense of autonomy and achievement. • • Instead of assuming traits. and for the purposes of self-auditing and selfmonitoring. the employee is usually expected to self-audit. If the employee meets or exceeds the set objectives. Employees are judged according to real outcomes. or on someone's subjective opinion of their abilities. and not on their potential for success. But put all the parts together and the performance may be directly observed and measured. xxiv .
Objectives. 2. stubborn and uninterested in work. whereby he periodically records critical incidents of the workers behaviour. Critical Incident Technique: Under this method. This method provides an objective basis for conducting a thorough discussion of an employee’s performance. the manager prepares lists of statements of very effective and ineffective behaviour of an employee. Variable objectives may cause employee confusion. • Of course. It results in very close supervision which may not be liked by the employee. These critical incidents or events represent the outstanding or poor behaviour of employees on the job. It has become very apparent that the modern organization must be flexible to survive. He failed to answer the store manager’s call thrice. He is polite.• One of the strengths of the MBO method is the clarity of purpose that flows from a set of well-articulated objectives. But this can be a source of weakness also. An example of a good critical incident of a sales assistant is the following: July 20 – The sales clerk patiently attended to the customer’s complaint. But the penalty for fluidity is loss of clarity. This method suffers however from the following limitations: Negative incidents may be more noticeable than positive incidents. tend to impose a certain rigidity. The manager maintains logs on each employee. negligent. prompt. by their very nature. and enthusiastic in solving the customers’ problem. The supervisors have a tendency to unload a series of complaints about incidents during an annual performance review session. It is also possible that fluid objectives may be distorted to disguise or justify failures in performance. the obvious answer is to make the objectives more fluid and yielding. On the other hand the bad critical incident may appear as under: July 20 – The sales assistant stayed 45 minutes over on his break during the busiest part of the day. At the end of the rating period. xxv . This method avoids recency bias (most recent incidents get too much emphasis). He is lazy. these recorded critical incidents are used in the evaluation of the workers’ performance.
Most frequently.. thorough... The recording of incidents may be a chore for the manager concerned. Graphic Rating Scale: Perhaps the most commonly used method of performance evaluation is the graphic rating scale.. 3.. accurate. Job title.. as shown below.. with respect to attendance......... Table 1.. who may be too busy or forget to do it...... the most common being the quantity and quality of work..... Department...... xxvi Unsatisfactory Fair Satisfactory Good Outstanding Rate.......... A variety of traits may be used in these types of rating devices... thoroughness and accuracy of work Knowledge of job A clear understanding of the factors connected with the job Attitude: Exhibits enthusiasm and cooperativeness on the job Dependability: Conscientious........... The rating scales can also be adapted by including traits that the company considers important for effectiveness on the job......... the critical incidents technique of evaluation is applied to evaluate the performance of superiors rather than of peers of subordinates..... Table: Typical Graphic Rating Scale Employee Name...... is used to evaluate the performance of an employee............... a printed form..... it is also one of the oldest methods of evaluation in use......... Under this method.....1 Graphic Rating Scale Quantity of work: Volume of work under normal working conditions Quality of work: Neatness. .. reliable... Data.... Of course.. A model of a graphic rating scale is given below.
as well as self-assessment. 4. 360 degree performance appraisal In human resources. where the employees are most often reviewed only by their manager. which is sometimes called "360-degree review. It may be contrasted with upward feedback. Cooperation: Willingness and ability to work with others to produce desired goals. easy to use and permits a statistical tabulation of scores of employees. lunch breaks. etc. and in some cases external sources such as customers and suppliers or other interested stakeholders. or 'multi source assessment'. it may be arbitrary and the rating may be subjective. also known as 'multi-rater feedback'. and managers in the organizational hierarchy. i. When ratings are objective in nature they can be effectively used as evaluators. where managers are given feedback by their direct reports. "360" refers to the 360 degrees in a circle. Another pitfall is that each characteristic is equally important in evaluation of the employee’s performance and so on.reliefs.e. One positive point in favour of the rating scale is that it is easy to understand.. 'multi source feedback'. is employee development feedback that comes from all around the employee. The results from 360-degree feedback are often used by the person receiving the feedback to plan their training and development. 360-degree feedback. The results are also used by some organizations for making promotional or pay decisions. The graphic rating scale may however suffer from a long standing disadvantage." xxvii . The feedback would come from subordinates. . peers. or a traditional performance appraisal. The rating scale is the most common method of evaluation of an employee’s performance today.
Gaining acceptance of the principle of multiple stakeholders as a measure of performance.Figure 1. xxviii • • • . Increased awareness of and relevance of competencies. .4 360 Degree Appraisal Method Benefits • Individuals get a broader perspective of how they are perceived by others than previously possible. Encouraging more open feedback — new insights.
A rounded view of the individual’s/ team’s/ organization’s performance and what the strengths and weaknesses are. or another non-production staff?” In production floor. 2. We can’t use the number of letters that has been typed by the secretary as the reference. too. as the basis of employee performance. your secretary. There are some consideration in making an effective BOS: 1. The key factor of measurement in this method is determining the behaviors in workplace that related to the success or the failure. This method is applicable for production-employees performance. Identifying strengths that can be used to the best advantage of the business. research & development staff). But. we can use the number of product (in units) that processed daily or in workhours easily. Critical Incident Technique (CIT) should be performed to minimize the bias of performance measurement xxix . The behaviors on the job must be JOB EVALUATION based analysis. called Behavioral Observation Scale (BOS). “How do you measure the performance of your administration staff. to the jobs. Supporting a climate of continuous improvement. a department and the organization as a whole. Good behavior will produce good performance. Raised the self-awareness of people managers of how they personally impact upon others — positively and negatively. Then. secretary.• • Provided a clearer picture to senior management of individual’s real worth Opens up feedback and gives people a more rounded view of performance than they had previously. the better the performance. The rationale is simple. as the larger the number of the letters. A QUALITATIVE based performance appraisal (PA) method has been developed to handle this problem. Identifying key development areas for the individual. BEHAVIORAL OBSERVATION SCALE • • • • • 5. this is very difficult to determine the quantitative type of work output completed by such employees (administration staff. bad behavior will be a distortion. partially or generally.
Bell Curve Method Grading on a bell curve is a method of assigning grades designed to yield a desired distribution of grades among the employees. the term "bell curve grading" came.e. if the top 15% of employees earn an 'A. though this type of grading does not necessarily actually make use of any frequency distribution such as the bell-shaped Normal distribution. grading "on a bell curve" refers to the assigning of grades according to the frequency distribution known as the Normal distribution (also called the Gaussian distribution). Because bell curve grading assigns grades to employees based on their relative performance in comparison to others.5 Normal distribution curve xxx . and will be the most common. This is the grade an average score will earn. by extension. emloyees scores are scaled according to the frequency distribution represented by the Normal curve. In true use of bell curve grading. to be more loosely applied to any method of assigning grades that makes use of comparison between emloyees’ performances. Strictly speaking. In a system of pure curve grading. The instructor can also decide what portion of the frequency distribution each grade occupies and whether or not high and low grades are symmetrically assigned area under the curve (i.6. the number of employees who will receive each grade is already determined at the beginning of a course. The instructor can decide what grade occupies the center of the distribution. Figure 1. Traditionally. whose graphical representation is referred to as the Normal curve or the bell curve.' do the bottom 15% fail or might only the bottom 5% fail?). in the ABCDF system this is the 'C' grade.
It helps in evaluating the performance of employees xxxi .Although Forced Distribution Method is quite popular in western countries. subjective. These pitfalls far out the way its contribution in terms of minimizing the errors of central tendency and facilitating comparative analysis. Performance appraisal system in Lotus Bawa Once an employee is selected and trained for a job then management would like to see how he performance his work. It is severely criticized for being unethical. it does not ensure its success in our country. and unsuitable for small teams and creating a dysfunctional work environment.
3) All expenses relating to the conduct of interview will be borne by the division/function where the vacancy exists. 4) In case of vacancies arising out of change in structure. 2) In all cases of responsibility change there is probation period of 12 months. the change in structure has to be approved by Executive Director for operational and professional band Managing director for tactical band and above 5) Selected person will have to be released within one month of issue of notice of selection. Various responsibility bands through which a person can move through performance appraisal system: Figure 1. whether these have been achieved or not has to be regularly evaluated. Every organization conducts this activity as per their requirements.and in assessing hiring and training methods followed in organization.6 Various Responsibility Bands Policies regarding responsibility band change 1) On change to higher or lower band benefits applicable to that particular band will be applicable from the date of assuming charge. The employees are recruited with some objective in mind. xxxii .
6) Routing of application through divisional/corporate functional head is purely a procedural matter. Performance management system Figure 1.7 Performance Management System xxxiii . B) On the basis of interviews. on the basis of Performance appraisal will be entertained. the selection committee will make a final short short listing and interviews will be done by a selection committee nominated by list of candidate to be sent to the head of division/corporate department where the vacancy exists for final selection C) For strategic and executive band . Procedure for selection to a higher band A) From amongst the applications received against an internal notice. 7) No recommendation for change in responsibility band while on the same job. corporate by HRD. In case corporate HRD receives any application directly. the final selection will have to be approved by managing director. a copy of the same will be sent to the divisional/corporate department head. 8) Corporate HRD will ensure that selection of candidate against any sanctioned vacancy is completed within 2 months from the date it is informed about the vacancy.
2) Key result area: On the basis of annual business plan each division. Then the purpose of doing that job is defined that whether it is to be done for higher purpose or for noble purpose. xxxiv . section and individual identifies his KRA.1) Mission: Mission allows us to see our job clearly.e: It should cover 80% of the job Be capable of producing results. For setting KRA’S certain principles have to be kept in mind i. For framing mission statements firstly the essence of job is captured. It gives us a sense of direction.
Weekly interaction with TA/TST f. Conducting manthan meeting d. and who needs to be informed. For each action plan it is important to define who is responsible. Daily coordination with canteen contractor b. measurable. and realistic and time bound. Grievance and issue with respect to compressor e. Goals are defined in various key results areas like various goals for stabilising activities in work place are to give smooth functioning of HR activities of entire company. whose support in terms of inputs of resources is required. Recruitment of temporary workmen c. 4) Action plan: Goals define what is to be achieved then action plan defines how to achieve it. And for canteen and security services goal is to coordinate canteen managing committee. 3) Goals: Goals must always be SMART i. Various action plans for stabilising activities in plant are: a. Be the main focus or priority areas for the planning period The various KRA’s defined for the period are: o To stabilize activities of compressor plant o Handling administrative compressor activities including canteen and security services. Preferably be maximum three in number.e Specific. whose approval is needed. Various action plans for canteen administration: a. In time submission of progress reports of TA/TST g. agreed. Giving feedback about quantity and quality xxxv . Joining and exit interviews of TA/TST. Daily coordination of HR activities and giving optimum results b.
The responsibility of providing the resources lies with L+1. In some cases . The idea is not to have increased xxxvi .it may be difficult to have a performance indicator in the objective. 7) Review system: If all the above parameters is fulfilled than goal is SMART but it should be reviewed periodically. in order to achieve the goal. In time feedback from the departments. in such cases it should be ensured that the action plan must be in terms of time bound actions . Ensuring in time delivery of tea. It can be present in the objective itself. What is already present should not be included as required resources. Performance indicator in respect of employees is Adherence to plan with respect to HR activities at workplace Performance indicator as regard canteen and security administration In time delivery of qualitative eatables in required quantity. Maintaining hygiene in canteen 5) Performance indicator: It indicates whether the desired performance has been achieved or not. Maintenance of eatables e. Required resources to stabilise HR activities at workplace Co-ordination with other departments Required resources for canteen and service administration Co-ordination with other departments. lunch and dinner d.jaladhar. 6) Resources required: Required resources are the additional resources required by L in order to complete his goals.If it turns out that the resources cant be provided it may mean a change in the action plan. Smooth management of security services in.c.
Conducting of the SWOT analysis during this meeting will help in identifying essential areas of thrust. 8) How to set KRA’s: Once the Divisional KRA’S have been identified by DMC.documentation. CB (could have done better) and BE (below expectations). The model is only to help the person focus on areas and come up the required skills that he needs to develop. self-managed and teamwork skills. It has two parts i. 9) Personal performance development: It deals with the competency areas that need for achieving the professional goals and these are classified into functional. but looking at some simplistic/innovative ways in which the goals become reviewable.this is the final stage. The important thing is that to identify all the relevant skills. The purpose of this exercise is to identify the KRA’S of the department.e. ME (met expectations). the top part which is for the planning year consists of the training needs identification and career development and the lower part for the year under review consists of ratings and comments of L and L+1. The L+1 will rate the L as SE (surpassed expectations). 11) Communication Form: . the departmental head along with the concerned individual should meet together at least 2 months prior to the start of new financial year. xxxvii . 10) Yearly Reviews : When to conduct? It is to be conducted by every manager with every of his L every month and a formal review is to be undertaken prior to the end of each year so that action plan and course correction can be made prior to the commencement of the next year.
CHAPTER – 2 REVIEW OF LITERATURE xxxviii .
This latter technique seeks supervisor's opinion and also seeks feedback from customers. To deal with this performance appraisal business process.REVIEW OF LITERATURE Dominic (1992) has conducted research and showed that Performance appraisal and employee satisfaction is high on the agenda of many companies This is because performance appraisal decisions have effects and consequences on workers' compensation and recognition. recently. Nykodym (1996) has conducted a research and showed that in recent years. Aggarwal (2002). 3) facilitate discussions concerning employee growth and development. This paper discusses emphasized that Performance appraisals have become vital to a given company's success in establishing an appreciation for and mindfulness of employee production. the authors proposed a Decision Support System (DSS) which consists of a mathematical model to evaluate the performance appraisal for individual and for departments in an organization. and the organization with a host of positive benefits. The most productive companies are those which put a significant amount of resource toward improving the skills of their managers in conducting performance appraisal There are three traditional performance appraisal techniques which are commonly used: rating. some companies have begun using "360Degree" performance appraisal. The findings of this paper provide important direction for the development of employee relation in an organization. Performance appraisals occur in every organization. The benefits are: 1) provide managers with a useful communication tool for employee goal setting and performance planning. the manager. While there is no question as to their xxxix . Barber (2003). 4) provide a solid basis for wage and salary administration. 2) increase employee motivation and productivity. ranking and critical incident. This helps employees in understanding where they should focus. peers and others who interact with the employee. widespread attention has been paid to the role of the formal appraisal process because of the belief that an effectively designed and implemented appraisal system can provide the employee.
An appraisal is a structured procedure of facilitated personal reflection that permits employees to review their professional responsibilities and outcomes and identify strengths and weaknesses. To do this. The organization's objectives are achieved by the successful accomplishment of individual objectives. In some small organizations. The xl ." Irvine (2007) The majority of companies have a formal or informal performance appraisal system. The result of hypothesis shows that performance appraisal is positively linked to an individual willingness to take risk. Rund et al (2007) have conducted research on individual and job based determinants of performance appraisal they investigate the use of performance appraisal in German firms.importance in overall productivity. Appraisals are important. "Performance appraisal is the evaluation of an employee job performance in order to determine the degree to which the employee is performing effectively. employees need feedback and help." Joshi (2004). Typically. They provide companies with the opportunity to measure their personnel's organizational assistance and determine where they would work best as part of a larger team effort. Humanistic development reflecting current trends with regard to performance appraisal systems are twofold in nature: 1) to realize the employee's production level and 2) establish a sense of personal appreciation beyond today's automated business community. they have also been the subject of much criticism due to their impersonal approach. performance appraisal takes place when the owner tells an employee "You are doing a good job". which. In a larger organization. will recognize and appreciate successes as well as address and offer suggestions on how to make improvements.. the appraisal process involves a written assessment issued on a regular basis. First they derive hypothesis on individual and job based determinants of performance appraisal usage. if done correctly. performance appraisals are designed to show more precisely how well workers are doing their jobs.
The paper suggests that the balanced scorecard performance appraisal method serves an important function regarding productivity and performance. and difficult to analyze the performance and see the trend of performance improvement of the employee. This system is goal-orientated as it calculates the objective scores Greenwood (2008). and flexible and can be customized according to the specific job responsibility. not flexible. Shrestha et al (2007) shown have conducted research in which it was shown that Employee performance appraisal is an effective way to determine the performance of the employees in an organization. but is also largely a form of negative reinforcement that results in a drag on performance and quality. easy.. Under this research web-based performance appraisal system was developed which is secure. In conclusion.performance of older employees and women is evaluated less often. the paper-based appraisal system causes a lot of manual work. xli . In the traditional appraisal system. This paper discusses performance appraisals with a specific focus on the balanced scorecard method. not secure. is time-consuming. the paper shows that the balanced scorecard appraisal concept and process is not entirely a negative device but it is inherently flawed by the conflict between its process and its procedure or its objective intent but subjective methodology. The performance of employees with very high and very low responsibility is assessed less often.
SCOPE & OBJECTIVES OF THE STUDY xlii .CHAPTER – 3 NEED.
Jalandhar. So in order to fill these gaps present research is conducted to know about the various factors being considered in appraisal. increasing motivation and productivity.In this survey is carried out on employees of each department. To know whether targets are properly set and defined.Need of the study: Earlier researches conducted on the topic showed that performance appraisal helped in employee goal settings. To know about various purposes being served by appraisal. Objectives of the study: • To know about the appraisal system being followed in company and at what time intervals it is done. Jalandhar. • xliii . providing basis for wage and salary administration. To check the satisfaction level of employees regarding their appraisal. providing feedback about the performance of employees and various methods used for same but no research was carried out regarding various factors which are considered for performance appraisal and criteria for target settings and to know about effectiveness of performance appraisal. • • • To know about various factors which are considered while doing appraisal. Scope of the study: The scope of the study is restricted to Lotus Bawa Ltd. criteria of target settings and to check whether the system is effective in producing good results or not and this study is carried out on Lotus Bawa.
• To know which skills are enhanced through performance appraisal. CHAPTER – 4 RESEARCH METHODOLOGY xliv .
The preparation of such a design facilitates in conducting it in an efficient manner as possible. xlv .this research is: 4. availability of manpower and circumstances.1 Research Research is a procedure of logical and systematic application of the fundamentals of science to the general and overall questions of a study and scientific technique. specific procedures.2 Research Design Research Design is an arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy on procedure. Stephenson research may be defined as” the manipulation of things. concepts or symbols for the purpose of generalizing to extend. correct or verify knowledge. 4. It is a blue print for the fulfillment of objectives and answering questions .RESEARCH METHODOLOGY 4. and technical rather philosophical means for getting and ordering the data prior to their logical analysis and manipulation different type of research designs is available depending upon the nature of research project.2A Descriptive Research: Present research is descriptive research because in this research it has been described that which method of performance appraisal is being followed in Lotus Bawa Ltd and various factors considered for the same. Thus it is original contribution to the existing stock of knowledge of making for its advancement. According to D. Slesinger and M. whether that knowledge aids in the construction of theory or in the practice of an art”. The research problem having been formulated in clear-cut term helps the researcher to prepare a research design. which provide precise tools.
An effort has been made to select respondents evenly. iii) Sample Unit: It indicates who is to be surveyed.4. iv) Sampling Technique: For the purpose of research random convenient sampling is used. v) Sampling frame: It consist of various sources from where information about the respondent is extracted. In this project senior HR xlvi .3 Sampling Design The following factors have to decide within the scope of sample design: i) Universe of study: universe of the study is employees working in Lotus Bawa Ltd. The researcher must define the target population that will be sampled. The survey is carried out on 50 respondents. Further it is divided as follows: Theoretical: -it includes the employees working in Lotus Bawa. Accessible: -it covers Lotus Bawa. 4.Jalandhar. ii) Sample Size: A sample of minimum respondents was selected from various divisions of Lotus Bawa. In this project sampling unit is the Technical associates from compressor plant.2B Conclusion oriented research: Present research is conclusion oriented because from the research it has been concluded that performance appraisal is not very much effective in producing better results because of lack of knowledge among employees about performance appraisal system and because of presence of biasness. Technical associates working in different divisions of Lotus Bawa have been approached to get the questionnaire filled.
Secondary data either is published data or unpublished data. xlvii . It is the backbone of any study. 4. and thus happen to be original in character.executive of Lotus Bawa has helped in getting the questionnaires filled. Secondary data is collected through internet and by using company’s sources. which are collected afresh and for the first time. • Problem of conceptualization: there was problem of conceptualization and also problem relating to the process of data collection and related things. • Time and cost factor: there as the difficulty of timely availability of published and relevant data this led to increase in cost.5 • Limitations of the study Inadequate data: the data provided was not up to the mark due to which we faced problems in our research. These are: i) Primary data: Primary data are those. It is obtained from respondents that are executives of each department with the help of widely used and well-known method of survey.4 Data Collection There are two types of data sources. ii) Secondary data: Secondary data are those which have already been collected by someone else and which have already been passed through the statistical process. through a wellstructured questionnaire. 4. In this case one is not confronted with the problems that are usually associated with the collection of original data.
xlviii . • No response by the respondent: problem arises in sensitive issues like getting information about the financial position of the respondent. which led to the delay of research.• Lack of scientific method: the lack of scientific training in methodology of research was great impediment in our research program.
CHAPTER – 5 DATA ANALYSIS & INTERPRETATION xlix .
l .1 Method of appraisal being followed in organization Responses No. of respondents 50 40 30 20 10 0 360 degree MBO BARS Bell curve Graphic scale No.That means all the 50 respondents have marked 360 degree as the method of prformance appraisal being used in the organisation.Q1 What system of performance appraisal is being used in your organization? Table 5. of Respondents Methods of appraisal Analysis: From the above table and graph it is clear that all the respondents have choosen 360 degree appraisal method. Interpretation: From above we can conclude that 360 degree method is used in Lotus Bawa for performance appraisal. of Respondents 60 No. of Respondents Percentage 360 degree 50 100 MBO 0 0 BARS 0 0 Bell curve 0 0 Graphic scale 0 0 Figure 5.1 Method of appraisal being followed in organization No.
of Respondents 50 45 40 35 30 25 20 15 10 5 0 No.2 Timings of appraisal No. of Respondents After every month Yearly Quarterly Time intervals Analysis: From above table and graph it is clear that all the 50 respondents have choosen the option yearly.2 Timings of appraisal No. li . of Respondents 0 50 0 Percentage 0 100 0 Figure5. Interpretation: From above we can conclude that performance appraisal is done yearly in Lotus Bawa.Q2 At what time intervals performance appraisal is being done in your company? Responses After every month Yearly Quarterly Table 5.
Q3 What purpose is being served by performance appraisal in organisation? Objective: To know about the purpose of performance appraisal Table 5.3 Purpose of appraisal Responses Identifying training needs Reward and recognition Potential Appraisal Job Enlargement No of respondents 3 39 5 3 Percentage 6 78 10 6
Figure5.3 Purpose of performance appraisal
purpose of performance appraisal
Identifying training needs Reward and recognition Potential Appraisal
Analysis: From above table and graph it is quite clear that 78% have marked the option reward and recognition and 10% respondents have marked option potential appraisal. Interpretation: lii
From above it can be concluded that performance appraisal serves the purpose of reward and recognition and potential appraisal.
Q4. Please rank the following personality traits which are considerd for performance appraisal 1 to 7.1(Being the mostly considerd and 7 being least considerd)? Initiative TeamWork Leadership Willingness To Learn Hard Work Positive Attitude Adaptability _____________ _____________ _____________ _____________ _____________ _____________ _____________
Objective: To know about various personality traits which are considered for performance appraisal
Table 5.4 Personality trait consider for appraisal Responses Initiative Team Work Leadership Willingness to Learn Hard Work Positive Attitude Adaptability No of respondents Percentage 2 4 4 8 2 4 3 6 30 60 2 4 5 10
Figure5.4 Personality traits consider for performance appraisal
Various personality traits that are considerd for performance appraisal
1 4% 6% 2 3 4 5 6 7 8
Analysis: From above table and graph it is clear that all the 60% respondents have choosen the option hardwork. Interpretation: From above we can conclude that 60% of employees think hardwork is the most considerd personality trait in Lotus Bawa Ltd. Q5. What are the various job related factors that are considered for performance appraisal? Objective: To know about various job related factors which are considered for performance appraisal.
Table 5.5 Job related factors consider for appraisal Responses Productivity Skill Level Improvement Done Absenteeism Quality Of Job No of respondents Percentage 2 5 12 0 27
4 10 24 0 54
Figure5.5 Job related factors that are consider for performance appraisal
Various job related factors considered for performance appraisal
Responses Productivity Skill Level Improvement Done
Absenteeism Quality Of Job
Analysis: From above table and graph it is quite clear that 54% have marked the option quality of job and 24 % respondents have marked option improvement done. Interpretation: From above it can be concluded that quality of job and improvement done is most considered while doing performance appraisal. Q6 What help are you getting through performance appraisal? Objective: To know how performance appraisal system is helping the employees. Table 5.6 Help to employees through performance appraisal lv
Statements 1 Strongly disagree 4 2 Disagree 1 3 Neutral 13 4 Agree 19 5 Strongly agree 13 Total Knowing about your competencies and weaknesses Planning your career Helping you in taking training programs easily Improving Efficiency Improving relations with management 186 4 7 5 5 14 14 17 19 11 5 179 160 4 5 3 4 10 13 21 21 11 8 179 176 Highest score 50*5=250 Average score50*3=150 Least score 50*1=50 Interpretation: On the basis of these scores the above statements can be interpreted as follows lvi .
it lies between average and highest score.It lies between average and highest score. The summated score of this statement is 179. So it is concluded that performance appraisal helps in knowing about competencies and weaknesses. lvii . 2. The summated score of this statement is 160.it lies between average and highest score. So it is concluded that performance appraisal does not help much in taking training programs. The summated score of this statement is 186. The summated score of this statement is 179. planning career and improving relation but it does not help much in taking training programs. The summated score of this statement is 176.it lies between average and highest score. So it is concluded that performance appraisal helps in improving efficiency to some extent. by studying graph we can see that most of respondents have chosen the option above average.1. 5. So it is concluded that performance appraisal helps in improving relation with management to some extent.it lies between average and highest score but it is more close to average. So in all it can be concluded that performance appraisal helps in knowing competencies and weaknesses. So it is concluded that performance appraisal helps in planning career to some extent. 4. 3.
So it can be concluded that production targets are defined to employees.7 Targets communication Highest score 50*5=250 Average score50*3=150 Least score 50*1=50 Interpretation: On the basis of these scores the above statements can be interpreted as follows: 1.Q7 The targets which are used for performance appraisal are properly defined to you? Objective: To know whether targets are properly defined or not. The summated score of this statement is 187.7 Targets communication Responses 1 Strongly Production in terms of units Scheduled time Quality standards Variance limit 4 2 5 3 1 7 10 8 14 20 17 13 12 21 7 180 201 148 Disagree 3 2 Disagree 1 3 Neutral 14 4 Agree 15 5 Strongly Agree 16 Total 187 Figure 5.It lies between average and highest score. Table 5. lviii .
So in all we can say that quality standards are properly defined to employees. So it can be concluded that quality standards are defined in proper manner. 4. lix . The summated score of this statement is 180.It lies between least and average score.It lies between average and highest score. The summated score of this statement is 148. The summated score of this statement is 201. So it can be concluded that time limit is also defined to employees.It lies between average and highest score. 3. So it can be concluded that variance limit are not defined to much extent.2. Production in units and time limit is also defined but variance limit is not defined much.
The summated score of this statement is 158. Out of 50 respondents 38 lx .8 Satisfaction level of employees Responses 1 Strongly Proper recognition of work Timely and adequate feedback Equal opportunities to all to grow Figure5.8 Satisfaction level of employees 13 8 9 11 10 150 4 11 13 17 5 158 Disagree 5 2 Disagree 8 3 Neutral 20 4 Agree 12 5 Strongly Agree 5 Total 130 Highest score 50*5=250 Average score50*3=150 Least score 50*1=50 Interpretation: On the basis of these scores the above statements can be interpreted as follows: 1. Out of 50 respondents 20 respondents have said that their work recognition is average. The summated score of this statement is 130. 2. It lies between least and average score. So from this it can be concluded that there is not much recognition of work.Q8 Are you satisfied with the performance appraisal system followed in your organization? Objective: To check the satisfaction level among employees regarding performance appraisal. Table 5.It lies between average and highest score but it is more near to average.
The summated score of this statement is 150. So from this it can be concluded that there is no proper growth opportunities for all.It is an average score. Table 5.respondents have marked till average. Out of 50 respondents only 10 respondents have agreed that equal opportunities are provided to all. Q9 To what extent you have enhanced your skills through performance appraisal system? Objective:To know how far performance appraisal has helped in enhancing various skills.9 Skills enhancement through performance appraisal 3 3 3 3 2 Disagree 4 3 2 3 2 3 Neutral 10 10 12 7 9 4 Agree 25 27 19 17 18 5 Strongly Agree 7 7 14 20 18 177 182 191 198 196 Total Highest score 50*5=250 lxi . So in nutshell it can be said that there is average recognition of work and no equal growth opportunities for all.9 Skills enhancement through performance appraisal Responses 1 Strongly Disagree Communication 4 skills Problem solving Taking up challenges Team building skills Leadership skills Figure 5. So from this it can be concluded that feedback about work is not properly given to employees. 3.
2. 4.It lies between average and highest score.19 respondents have marked option above average and 14 respondents have marked option highest. SO it can be concluded that performance appraisal plays positive role in helping employees in taking challenges. So it can be concluded that performance appraisal system helps in enhancing communication skills to much extent. 3.Average score50*3=150 Least score 50*1=50 Interpretation: On the basis of these scores the above statements can be interpreted as follows: 1. 20 respondents have marked option highest and 17 respondents have marked option above average. The summated score of this statement is 182. So it can be concluded that leadership skills are also enhanced through performance appraisal. So it can be concluded that problem solving abilities do enhanced through performance appraisal.More than half of the respondents have marked the option above average. The summated score of this statement is 191.It lies between average and highest score.It lies between 150 and 250. The summated score of this statement is 196. Q10 What are the limitations of performance appraisal system? lxii . So in all it can be concluded that performance appraisal helps in enhancing all types of skills but team building and leadership skills are enhanced to maximum extent. So it can be concluded that team building skills are enhanced to much extent through performance appraisal. The summated score of this statement is 198.out of 50 respondents 25 respondents have agreed that they have marked the option above average and 7 respondents have marked option highest.It lies between average and highest score.It lies between 150 and 250. 5. The summated score of this statement is 177.
If individual drawbacks are taken then biasness is one of the biggest drawback lxiii .Objective: To know about the drawbacks of performance appraisal.5 respondents have marked the option biasness. Table 5.10 Drawbacks of performance appraisal Responses No of respondents Percentage degrade the morale 3 Biasness 5 affects relationship between employer and 0 employee fear of demotion 3 all of above 39 6 10 0 6 78 Figure 5.10 Drawbacks of performance appraisal No of respondents degrade the morale Biasness 6% 10% 0% 6% affects relationship between employer and employee fear of demotion 78% all of above Analysis: From above table and graph it is clear that out of 50 respodents 39 respondents have marked option all of above. Interpretation: From above it can be concluded that performance appraisal system do have drawbacks.
11 Advantages of performance appraisal Analysis: It is clear from above table and graph that 88% respondents have marked option performance evaluation but no one has marked the option new ideas through workers participation.11 Advantages of performance appraisal Responses Sense of belongingness New ideas through workers participation Performance evaluation Guidance to employees All of above No of respondents 1 0 44 3 2 Percentage 2 0 88 6 4 Figure 5. Interpretation: lxiv .Q11 What are the various advantages of performance appraisal? Objective:To know about the various advantages of performance a Table 5.
From above it can be concluded that performance appraisal helps in evaluating the performance but it does not help much in new idea generation and creating sense of belongingness. Table 5.12 Making performance appraisal system effective Responses Removing biasness Timely and adequate feedback Properly defined roles and responsibilities No of respondents 33 15 2 Percentage 66 30 4 Figure 5. Interpretation: lxv . Q12 How to make performance appraisal system effective? Objective: To know how to remove drawbacks and make the system effective.12 Making performance appraisal system effective How to make performance appraisal system effective 4% 30% Removing biasness Timely and adequate feedback 66% Properly defined roles and responsibilities Analysis: From above table and graph it is quite clear that 66% have marked the option removing biasness and 30% respondents have marked option timely and adequate feedback.
From above it can be concluded that performance appraisal can be made effective by removing biasness and providing timely feedback. CHAPTER – 6 FINDINGS OF THE STUDY lxvi .
. f) It has been found that performance appraisal does not help much in identifying training needs. potential appraisal and job enlargement. d) Various personality traits which are considered for performance appraisal are initiative.Findings of the study a) From the study it has been found that 360 degree appraisal system is followed for performance appraisal in Lotus Bawa. e) Various job related factors which are considered for performance appraisal are productivity. b) It has been found that performance appraisal is done yearly. skill level. It helps in recognition and reward to some extent as summated score of this statement is 175 out of 250 which is highest among all. designing good salary structure. potential appraisal and job enlargement. and quality of job .but 59% of employees believe that quality of job is most important factor and 26% are of the believe that improvement done as another important factor. leadership. It helps in recognition and reward as 78% employees believe and in potential appraisal . improvement done. All these factors are considered but 60% are of believe hardwork is the most considered personality trait. positive attitude and adaptability. c ) It has been found that performance appraisal does not help much in identifying training needs. designing good salary structure. teamwork. willingness to learn. hard work. absenteeism. lxvii .
they don’t have much knowledge about variance limits as summated score for variance limit is 148 which is below average. h) From the study it has been found that targets in terms of units and time schedule are properly given to workers. i) From the study it has been found that there is average recognition of work and no equal opportunities for all to grow because summated score of these factors lie below average. improving relation with management but it does not help much in taking up training programs because summated score of training is 160 which is least as compared to other factors summated score . j) It has been found that performance appraisal helps in enhancing all types of skills but team building and leadership skills are more enhanced and the summated score of these is 198 and 196 respectively.g) It has been found that performance appraisal helps to some extent in knowing about competencies and weaknesses. k) The various drawbacks of performance appraisal revealed through study are degrade the morale. l) Performance appraisal helps in evaluating performance but it does not help much in new idea generation and creating sense of belongingness. affects relationship between employer and employee and it leads to fear of demotion but biasness in this system is more serious problem of all if we consider individual factors as 10% respondents have said biasness but only 6% respondents have said that it degrade the morale and it lead to fear of demotion. lxviii . they have proper knowledge about quality standards.
7 CONCLUSION & RECOMMENDATIONS lxix .CHAPTER .
So in crux it can be said that performance appraisal is the most important function of human resource management. The conclusion drawn is that various job related and personality traits are considered for performance appraisal and most important among all factors is quality of job. From research it is known that Lotus Bawa is following 360 degree for appraising the performance of employees and various ratings used for performance appraisal are BE. The developmental purpose is intended to identify problems in employees performing the assigned task.CONCLUSION Performance appraisal (PA) is one of the important components in the rational and systemic process of human resource management. a human resource management system falls apart. teamwork and positive attitude towards work. ME And SE. resulting in the total waste of the valuable human assets a company has. The collected performance data are used to provide necessary skill training or professional development. This research is taken to know how performance appraisal is done in Lotus Bawa Ltd. Without a reliable performance appraisal system. leadership. Can do better. So performance appraisal is needed in every organisation. and motivating and maintaining a quality work force by adequately and properly rewarding their performance. The collected performance data are frequently used to reward high performance and to punish poor performance. It helps in development of employees and helps an lxx . The evaluative purpose is intended to inform people of their performance standing. The objective of the study is to know about the system of performance appraisal. There are two primary purposes of performance appraisal: evaluative and developmental. training and development of existing staff. to know about various factors which are considered for appraisal and to know about various purposes which are served through appraisal. Performance appraisal also helps in knowing about competencies and weaknesses and in improving relationship to some extent. The information obtained through performance appraisal provides foundations for recruiting and selecting new hires.
lxxi . But it will give positive results only if limitations like biasness is removed from it. The appraiser should avoid halo affect while doing the appraisal. There should be no biasness among them.organisation to cope with the changes. The performance appraisal system should be such that it will help the employees in knowing their weaknesses and help them to adapt themselves according to the changing environment. Equal opportunities should be provided to all the employees to grow. RECOMMENDATIONS OF THE STUDY The purpose of performance appraisal should be properly communicated to the rater and the ratee. Proper and timely feedback should be given to the employees so that they can understand what is actually expected from them and will give better results. Supervisor should create a healthy atmosphere and motivates its subordinates to give creative ideas for improving the ways of doing work.
BIBLIOGRAPHY lxxii .
”Performance appraisal”.Ltd. oxford journals. Martin. Tata McGraw Hill Publishers.” Decision support system for performance appraisal”.N. 253285.. last accessed on 3 July. (1996). Pp. (2004). last accessed on 5 July 2010.A.”Human Resource Management”.2010. .lotus-bawa. (2006)... last accessed on 31 July 2010.”Performance appraisal”..W. (2006).N. “Human Resource and Personnel Management” 2/e. vol 9(2). “About us” available at http://www. (2005). oxford journals. Nick. (2008). last accessed on 20 July 2010. Pp. K. (2005). Pp.A. 2010. vol 10. Cambidge journals. vol 20(3).”Performance appraisal”. Macmillan Pvt.N.”360-degree feedback”. “Performance Appraisal”.. last accessed on 12 July 2010. Archer. Bentley. Aswathappa.” Public sector performance appraisal effectiveness: a case study”. 243279. Cambridge journals.s REFERENCES OF THE STUDY Anonymous.asp. last accessed on 17 July. Dominic. last accessed on 30 June. 2010. Cambidge journals. Cambridge journals. 741-768. Pp. vol 15. 437-481. vol 21(2). Oxford journals. vol 11(2). 2010. Dessler Gary. 1093. lxxiii .com/aboutus. (2006). 455-488. Archer. (2001)...T. 785818. McClintic.. last accessed on 19 July. Pp. (1999). Pp. Pp. vol 9.
ANNEXURE lxxiv .
Jalandhar is conducting a survey on the topic “Performance Appraisal System At Lotus Bawa Ltd.” as a part of our curriculum. DEMOGRAPHIC PROFILE Name_______________________________ Age Less than 20 years 40-60 years Gender Male Designation: Manager Executive Female Supervisor 20-40 years More than 60 years Q1 what system of performance appraisal is being used in your organization? a) 360 degree b) MBO c) BARS d) Bell curve e) Graphic Rating Scale lxxv . Ekta Manocha .QUESTIONNAIRE Dear respondent. Your cooperation is required in this endeavor and we assure that the following questionnaire will not take much of your time. I. MBA students of ‘APEEJAY Institute of Management.
Q2 At what time intervals performance appraisal is being done in your company? a) After every month b) Yearly c) Quarterly Q3 What purpose is being served by performance appraisal in organisation ? 1. Improvement Done 5.1(Being the mostly considerd and 7 being least considerd)? Initiative TeamWork Leadership Willingness To Learn Hard Work Positive Attitude Adaptability _____________ _____________ _____________ _____________ _____________ _____________ _____________ Q5. Absenteeism Q6 What help are you getting through performance appraisal? 1 Statements Strongly 2 Disagree 3 Neutral 4 Agree 5 Strongly lxxvi .Reward And Recognition 4. Job Enlargemet Q4. Idenitifyng Needs 3. What are the various job related factors that are considered for performance appraisal? 1.Potential Appraisal 2. Please rank the following personality traits which are considerd for performance appraisal 1 to 7.Quality of Job 2.Productivity 3. Skill Level 4.
Disagree Agree Knowing about your competencies and weaknesses Planning your career Helping you in taking training programs easily Improving Efficiency Improving relations with management Q7 The targets which are used for performance appraisal are properly defined to you? Statements 1 Strongly Disagree Production in terms of units Scheduled time Quality standards Variance limit 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree lxxvii .
Q8 Are you satisfied with the performance appraisal system followed in your organization? Statements 1 Strongly Disagree Proper recognition of work Timely and adequate feedback Equal opportunities to all to grow 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree Q9 To what extent you have enhanced your skills through performance appraisal system? Statements 1 Strongly Disagree Communication skills Problem solving Taking up challenges Team building skills Leadership lxxviii 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree .
lxxix ..skills Q10 What are the limitations of performance appraisal system? a) Degrade the morale b) Biasness c) Affects relationship between employer and employee d) Fear of demotion e) All of above Q11 What are the various advantages of performance appraisal? a) Sense of belongingness b) New ideas through workers participation c) Performance evaluation d) Guidance to employees e) All of above Q12 How to make performance appraisal system effective? a) Removing biasness b) Timely and adequate feedback c) Properly defined roles and responsibilities Suggestions…………………………………………………………………………… ………….
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