FINAL REPORT

ON MANAGEMENT THESIS

“Performance Appraisal - A study on HR practices at Aditya Birla
Group (Grasim Industries)”

CERTIFICATE
This is to certify that the management thesis I titled “Performance

Appraisal- A study on HR practices at Aditya Birla Group (Grasim Industries)” submitted by ___________ Alumni No.______________-during the
MBA program (class 2010) embodies original work done by her.

Signature of the faculty guide Faculty member Hyderabad

DECLARATION

I here by declare that the project work entitled “Performance Appraisal- A study on

HR practices at Aditya Birla Group (Grasim Industries)” for the academic year
SS 2008-2010 submitted to IIPM in partial fulfillment of the requirement for the award of the “Master of Business Administration” is a bonafide work carried out by me under the guidance of ______, guide, and this has not been submitted to IIPM or any other university.

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. _______________.ACKNOWLEDGEMENT At the very outset. I would like to thank the lord for the supernatural grace and mercies. HR. . I wish to record my deep sense of gratitude to my guide. GRASIM INDUSTRIES for his valuable suggestions. constructive comments and guidance to bring out this project successfully. Finally it’s my pleasure to thank my parent and friends for their continuous encouragement at every moment.

2 Literature Review-1 V VI VII ANALYSIS AND INTERPRETATION FINDING AND SUGGESTION CONCLUSION .5 Research Methodology II III IV COMPANY PROFILE ORGANISATIONAL CHART LITERATURE REVIEW 4.4 Justification of the problem 1.2 Objectives of the study 1.3 Discription of the problem 1.CONTENETS Abstract 1.1 Introduction 1.1 Literature Review-1 4.

and strategies regarding their appraisal system and can create greater efficiencies in meeting strategic business objectives.ABSTRACT The purpose of this study was to determine the factors which the employees in the organization preferring for their appraisal and the employees satisfaction with the existing appraisal system. The results of the current study can be used by organizations to develop policies. Most of the respondents rated both subjective and . practices. Findings were made based on the data collected from 150 employees with the aid of a questionnaire in which 5-point likert scale and rating scale were employed.

The employers must pay attention to this situation and design effective methods as remedies at the earliest or else they may soon lose their efficient workforce. It was also found that some employees surveyed are dissatisfied with their present organization appraisal methods and there are great chances that they may leave their employer if they get better job opportunities from any better employer. Canada. Company Profile Aditya Birla Group is India's first truly multinational corporation. Indonesia. Malaysia and Korea. France. Laos.00. Brazil. UK. USA. The group has an annual turnover of US$ 24 billion and has over 1. Australia. Philippines. Hungary. Globally the Aditya Birla Group is: . Aditya Birla Group has its presence in 20 countries – India. China.objective measures as preferable. Luxembourg.000 employees belonging to over 25 different nationalities on its rolls. Italy. Germany. Egypt. Thailand. Switzerland.

Hindalco: It has established been in 1958. • The 2nd largest in the Chlor-alkali sector. branded garments. textiles and insulators. asset management and other financial services. Together the two companies under the group account for a substantial share of the cement market in India. Aditya Birla Nuvo: Aditya Birla Nuvo is a diversified business conglomerate with interests in viscose filament yarn (VFY). telecom. through its subsidiaries and joint ventures has made forays into life insurance. Its copper smelter is today the world's largest custom smelter at a single location.• A metals powerhouse. In India: • A premier branded garments player. • Among the top 5 mobile telephony companies. Hindalco acquired Novelis and in the process became the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. is a Fortune 500 Company. business process outsourcing (BPO). carbon black. In 2007. Hindalco. UltraTech cement comprises the erstwhile cement business of L&T which was acquired by the . Hindalco is the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. from its fold. among the world’s most cost-efficient aluminium and copper producers. • The 2nd largest player in viscose filament yarn. Aditya Birla Nuvo. fertilizers. Hindalco deals in Aluminium and Copper and is an industry leader in both. It is also the largest aluminium rolling company and one of the 3 biggest producers of primary aluminium in Asia. Ultra Tech Cement: The Groups cement business is under both Grasim and UltraTech cement. as well as India's leading copper producer. IT services.

It was in 1824. waterways. Today. Grasim acquired the well-known Dharani Cements Ltd situated at Reddipalayam. cement (commonly Portland cement).group. Soon after the acquisition. Perambalur District. when Joseph Aspdin and Isaac Charles Johnson refined synthetic cement that Portland cement came into existence. it is only one of several components in modern concrete. different types of concrete are categorized according to their method of installation. aggregate (generally gravel and sand). it acquires a stone-like consistency that makes it ideal for constructing roads. However. airports. mass transit systems. Grasim itself is a multi-product company with cement being the major area of focus. Grasim embarked on a most prestigious project of one million top capacity cement plant at the existing locations. In August 1998.Ultra Tech Cement manufactures and markets Ordinary Portland Cement. factories. Its export market includes countries around the Indian Ocean. . bridges.e. Now a day the cement division of the Grasim industries Limited works under the banner of the Ultratech Cement limited (UTCL). Although people commonly use the word cement as a synonym for concrete. Africa. water and admixtures. it was not widely used until World War II. Europe and the Middle East. Portland Blast Furnace Slag Cement and Portland Pozzolana Cement. This type of concrete is sometimes transported in an agitator truck and is also known as transit-mixed concrete. Ready or pre-mixed concrete is batched and mixed at a central plant before it is delivered to a site. when several large docks and bridges were constructed. railroads. Concrete is used more than any other man made material on the planet. As concrete dries. READY MIX CONCRETE Concrete is a hardened building material created by combining a binder i. Shrink-mixed concrete is partially mixed at the central plant and its mixing is then completed en route to the site. GRASIM INDUSTRIES LIMITED is the flagship company of Aditya Birla Group. water supply and sewage systems. It is the country's largest exporter of cement clinker.

UltraTech Concrete makes good concrete better because the company takes extra care to make sure it is perfect both ways — proportion wise and handling wise. cured and protected also play a great role. each and every sample of concrete passes through stringent tests in fresh and hardened state to ensure strength. the Aditya Birla Group Company. And an art because it is not just the accurate proportioning which determines the quality of concrete. maintains a high level of precision in its quality assurance procedures and produces world-class concrete that comes in a package of highly reliable durability. moisture etc. protected from weathering conditions and influence of external environment such as air. How does UltraTech Concrete make good concrete better? Right from selecting the raw materials to batching and mixing. UltraTech Concrete plant uses fresh cement directly procured from the cement plants through cement bulkers.The secret of good concrete lies in the degree of quality control and technical parameters of the mix. Science because the right proportions of all the ingredients as per the standard Bureau of Indian Standards (BIS) code assures the desired strength and durability. The making of concrete is a science as well as an art. Clearly. To ensure quality. UltraTech Concrete .. it's all about putting together the right ingredients for that perfect recipe. compacted. which makes good concrete better. which in turn pump it directly into the concrete silos thus protecting it from the external environment. weeds and other organic materials. is an important ingredient of concrete. Coarse aggregates Coarse aggregates — free from clay. but the way it is mixed. cubical or rounded with a combination of different sizes and not elongated or flaky — ensure proper strength of the concrete and make it non-porous. strength and performance. transportation. placing of concrete till testing of concrete — UltraTech ensures flawless operation in every stage. placed. durability and performance. These coarse aggregates are a vital ingredient of good concrete. Cement Fresh cement. UltraTech.

Mixing is generally done through high efficiency pan mixers (machine mixers / turbo mixer) to ensure uniform and consistent quality concrete. is pre-designed through a scientific mix design as per the BIS standards and kept constant throughout to maintain the consistency in quality for a particular mix. clay. It uses a computerized recipe for the raw mix design (cement : sand : coarse aggregate : water : admixture) and quantities of raw materials are weighed automatically as per the design mix. tested as per BIS for size. sugar. Admixture Admixtures used in concrete during mixing ensures its workability (the ease of placing of concrete in moulds) and the setting time is carefully chosen from reputed companies. salts and organic materials to prevent shrinkage cracks. very important to satisfy the strength and durability criteria of concrete. impact value and crushing value etc. acids. The workability is measured for every batch through the slump cone and is controlled using a scientific method of dosing. organic materials is ideal for concrete. UltraTech Concrete is equipped with computerized batching and mixing plants to strictly monitor the quality of the concrete. the fine aggregate used in concrete must be free from silt. UltraTech Concrete directly purchases sand from selected and approved suppliers tested for moisture content. free from impurities such as oil. which affect the concrete quality and durability.directly sources the aggregates from selected and approved suppliers. The watercement ratio. gradation. UltraTech Concrete plants use moisture sensors and an automatic water correction procedure. Fine aggregate Sand. UltraTech Concrete uses water tested at frequent intervals and uses water purifiers whenever necessary. shape. salts. Transportation . alkalies. Water: Potable water. To maintain the correct water-cement ratio.

infrastructure and espousing social cause. Beyond business — the Aditya Birla Group is: Working in 3. sustainable livelihood. Qualified and experienced engineers monitor the entire operation. Further. UltraTech Concrete transports concrete from its ready mix concrete plants to the site through transit mixers. . Placing the concrete is expedited scientifically by specialized delivery trucks. education. the Group has been adjudged “The Best Employer in India and among the top 20 in Asia” by the Hewitt-Economic Times and Wall Street Journal Study 2007. thus maintaining the homogeneity of the concrete throughout the transit till the final deposition. Rajashree Birla Focusing on: health care. About Ultratech Cement Ltd Ultratech Cement Ltd is having its own vision. Mission of the company: . It is anchored by an extraordinary force of 100. belonging to 25 different nationalities. Over 50 per cent of its revenues flow from its overseas operations. mission and values. In India. the concrete is pumped to the actual point of concreting using high efficiency concrete pumps.000 employees. as there is possibility of the concrete drying out and losing its workability and plasticity.700 villages Reaching out to seven million people annually through the Aditya Birla Centre for Community Initiatives and Rural Development. spearheaded by Mrs. Vision of the company: To be a premium global conglomerate with a clear focus on each business.The transport of concrete from its place of mixing to the delivery point is very critical.

of conviction. In large organizations. employees and society at large. These together constitute what they call their “Value”. when they understand the organization. Integrity. shareholders. Organizational Chart RMC Central . Speed. Commitment. it requires leadership of principles. Passion Seamlessness.To deliver superior value to the customers. of beliefs. such shared understanding cannot be created through leadership of individuals alone. People understand an organization through its values by experiencing the culture that values create and by using the systems and processes that values define. Values of the company: People contribute when they relate to an organization and they relate.

Head RMC Head HR Head Mktg & Sales Head Tech. Head O&M Head II Head Aggrega te Head Logistics RMC HR . Service Head Operatio n Head F&C Head SCM Head Projects Head Sales Head Mktg.

Development Zonal Coordinators North/East/Wes t/South Assistant Poornat a/MI S M S/P MS City HR/IR & Safety Training School .Head HR Recruitment Specialist Org.

It is a systematic and objective way of evaluating both work related behaviour and potential of employees. Evaluative. how to set pay levels. It is a process that involves determining and communicating to an employee how he or she is performing the job and ideally. and helping a worker formulate appropriate career goals. establishing a plan of improvement. and how to assign tasks to individual workers. 2. evaluating which of a worker's weaknesses can be corrected by additional training.1 INTRODUCTION TO THE TOPIC Performance appraisal is a method of evaluating the behaviour of employees in the work spot. Developing a Performance Appraisal System Managers can use the information gained from performance appraisal for two main purposes: 1.CHAPTER 1 INTRODUCTION 1. . normally including both the quantitative and qualitative aspects of job performance. These goals are interrelated because one of the principal ways that managers motivate workers is by making decisions about how to distribute outcomes to match different levels of performance. Developmental purposes such as determining how to motivate a worker to perform at a high level. To provide accurate information to be used in managerial decision making. decision-making purposes such as deciding whom to promote. 2. Performance appraisal has two over arching goals: 1. To encourage high levels of worker motivation and performance.

When 360. • Objective measures such as numerical counts are based on facts. . profit margin. researchers and managers have focused considerable attention on the best way to construct subjective measures of performance. subordinates. they are vulnerable to many of the biases and problems that can distort person perception. The manager would then receive feedback based on evaluations from each of these sources. the number of patients a physician treats in a day and the return on capital. the dollar value of the sales a salesperson makes in a week.Methods of Appraisal The measures managers use to appraise performance can be of two types: objective or subjective. and results. and can be used for appraisals based on traits. The number of televisions a factory worker assembles in a day. behaviors. While 360-degree appraisals can be used for many different kinds of workers they are most commonly used for managers. Because there is no alternative to the use of subjective measures for many jobs. for example. may include evaluations made by peers.degree appraisals are used. • Subjective measures are based on individuals' perceptions. and growth in income of a business are all objective measures of performance.a worker's performance is evaluated by a variety of people who are in a position to evaluate it. Because subjective measures are based on perceptions. and clients or customers who are familiar with the manager's performance. They are used primarily when results are the focus of Performance appraisal. • 360-degree appraisal . superiors. A 360-degree appraisal of a manager. managers have to be careful that each evaluator is familiar with the performance of the individual he or she is evaluating.

A study on impact of performance appraisal was undertaken to study the reasons and ways to improve the condition.3 OBJECTIVES OF THE STUDY The present study on “impact of performance appraisal system” was undertaken with the following objectives: • • • • • To find whether the existing appraisal system in the organization exactly To find whether the feedback from the appraisal system assists in the To determine the gaps in the existing system. To determine what type of appraisal did the employee’s really looking for.2 STATEMENT OF THE PROBLEM The performance appraisal of the employees in the organization should be an effective tool for measuring the employee’s performance. If the performance not measured in a real manner it will be a critical issue.4 SCOPE OF THE STUDY . To find is there is any opportunities provided for the employees to improve measures the employee’s performance. 1.1. employee’s training and development. their performance. 1.

• • • • This study can be helpful to the company for conducting any The study is also helpful in finding out the respondent’s It is also helpful in finding out the reach and effectiveness of This study also serves as a base for understanding the about the employees regarding their performance further research. Null hypothesis is used for testing. • With the results of the study the company can improve their standards of their appraisal system 1.5 HYPOTHESIS OF THE STUDY The study includes the calculation of null hypothesis and alternative hypothesis by comparing age group of the respondents and preference of the appraisal system.The scope of the project is fully dependent upon the objectives of the project. perception appraisal. the performance appraisal system. opinion towards certain attributes. The alternative hypothesis is the logical opposite of the null hypothesis 1. It is a statement that no difference exists between the parameter and statistics being compared to it.6 LIMITATIONS OF THE STUDY .

Some of the respondents were not even ready to spare time with the researcher. There are many respondents who hesitated to answer the questionnaire.• Time and resource were the major constraints during the execution of the project.7 CHAPTERIZATION OF THE PROJECT The project done is being explained under five different chapters: • • • • • Introduction Concepts and review Research methodology Data analysis and interpretations Results and Discussions . So it cannot be generalized as a whole. • • • • • The respondents were selected inside the organization only. 1. The human behaviour is dynamic and hence the results may not hold good for a long time. The results of the survey are totally dependent on the accuracy and authenticity of the information provided by the respondents. Therefore only a limited number of employees were included in the project.

have ample chances for advancement. .1. like their coworkers. The performance appraisal is to assess a person and let him to know where he is being standing along with the job.1 Definition of Performance Appraisal A formal and systematic process.2 REVIEW OF RELATED LITERATURE M Bowels and G Coates (1993) The Management of Performance as Rhetoric on Reality ARGUMENT: Managers are mostly appraised by results.1. observed. and flexible schedules so they could attend to personal or family needs when necessary.CHAPTER 2 CONCEPTS AND REVIEW 2. but results alone cannot reflect performance because it is still affected by many other factors. It is to find whether he is performing with his task or not. by means of which the job relevant strength and weakness of the employees are identified. work hard for their employees.1 CONCEPTS OF THE STUDY 2. employees would love their jobs. 2.2 Concept of Performance Appraisal In the best of worlds. measured and developed. get paid well for their work. 2.

.3 COMPANY PROFILE Span systems a matured growing IT services company with 14 years of experience. 2. The company focussing on optimizing and aligning IT initiatives with business strategies. problems faced by the organization experiencing some difficulties were measuring performance and the extra demands made on CONCLUSION: Management should provide the enabling conditions through which work is performed.  Not enough time is given to the process. CONCLUSION: The focus must move away from measurement and judgement towards developing.  It reinforces modes of intrusive control. understanding and building up trust to allow a genuine dialogue to take place. D Winstanely and K Stuart-Smith (1996) RESEARCH:  Conclusive evidence that leads to improved performance is lacking. Performance appraisal should be an opportunistic means to address performance issues rather than a coherent systematic process.RESEARCH: The managers.

made to clients needs and built around the following key areas relevant to any business enterprise: . Intel Pentium 4/ windows 2000. Sales offices at USA. offshore It development facility 128 kbps dedicated 24*7 internet access with secure firewall protection. TCP based 100/1000 MBPS Ethernet LAN on 100 MBPS switches Complete data backup recovery infrastructure with disaster recovery facility In – house training facilities. Irrespective of activity with the clients the company have demonstrable methods of showing enhanced productivity.4 PRODUCT PROFILE IT Services Span systems are tailor. 40+ workstations. 2. sun Solaris and Intel based red Linux servers. Clients get the value through the pragmatic approach to an engagement rather than a cost based model or a purely process driven model.The company has achieved a CMM level 4 and ISO 9001-2000 and expecting to achieve CMM level 5.ft. Sweden and in India give the company for easy access to global markets. The business model deliver value through optimal use of offshore and onsite resources and through managed relationships under the RM model. IT Infrastructure • • • • • • 15000 sq. The company have multiple development centres in Bangalore and planned to expand their services to all over the India.

• • •

Application development- customized software applications based on the architecture constructed by our business consulting services. Business intelligence- productivity solutions that empower decision makers to access data across the enterprise. Education and training- training and up gradation of skills in data modelling, UML modelling, data ware housing and business intelligence for corporate.

Contracting People, project and system recovery support. Span systems offers solutions that are strategically aligned with corporate business goals. Span systems undertake mobilization of personnel under placement at the client identified locations. On request, or at the conclusion of the contract period, the deputed personnel are demobilised from the client sites. IT Expertise • • • • • • • • • Operating systems: windows 98/2000/XP, Red Hat Linux and Sun Solaris. Development Tools: Visual Basic, Power Builder, Oracle Developer. Databases: Oracle, Sybase, SQL Server,DB2 and MySql UML Modelling tools: describe and rational rows. Data modelling tools: ER Studio, ER Win and power designer Groupware: Lotus notes/domino, MS exchange. Business intelligence: Oracle discoverer, business objects and congas. Data warehouse tools: DT Studio Web tools: Macro media dream weaver/flash and adobe Photoshop.

CHAPTER 3 METHODOLOGY
3.1 INTRODUCTION Research is a scientific and systematic search for pertinent information on a specific topic. Research is an art of scientific investigation. According to Clifford Woody, “Research comprises defining and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions and reaching conclusions and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis”. 3.2 RESEARCH DESIGN Research design aids the researcher in the allocation of limited resources by posing crucial choices in methodology. Research design is the plan and structure of investigation so conceived as to obtain answers to research questions. The plan is the over all scheme or program of the research. It includes an outline of what the investigator will do from writing hypothesis and their operational implications to the final analysis of data. DESCRIPTIVE RESEARCH DESIGN The design for this study is descriptive research design. This design was chosen as it describes accurately the characteristics of a particular system as well as the views held by individuals about the system. The views and opinions of employees about the system help to study the suitability of the system as well as the constraints that might restrict its effectiveness

3.3 SAMPLING TECHNIQUES The sampling technique adopted for the purpose of the study is convenience sampling. As the name implies a convenience sample means selecting particular units of the universe to constitute a sample. SAMPLE SIZE The sample size of the study is 150. This sample is considered as representative. 3.4 DATA COLLECTION PRIMARY SOURCE: The primary source of data is through Questionnaire. SECONDARY SOURCE: The secondary source of information is based on the various details retrieved from Journals, Websites and Magazines. The data for this study has been collected through primary sources. Primary data for this study was collected with the help of Questionnaires and evaluation feedback forms. The extra information was collected through interviews with the employees at various companies.

It can be used for higher scales. Chi-Square.5 TOOLS OF THE STUDY 3. percentage analysis and. Five pointer scales were use through the Questionnaire.5. Graphic Representations. It makes no assumptions about the population being sampled. Chi-Square Test The Chi-Square test is one of the simplest and most widely used non-parametric test in statistical work. It is practically useful in tests involving nominal data. The formula for computing Chi-Square is CHI-SQUARE = (O-E)2 / E . are used in the compilation and computation of data.5. The main reason for selecting the questionnaire method for the study is: • • • Respondents have adequate time to give well thought out answers. If Chi-Square is zero it means that the observed and the expected frequencies completely coincide. the greater would be the discrepancy between observed and the expected frequencies. The time of the study was also a limiting factor. 3.2 Statistical tools used Statistical tools like Tabulation.1 Tool used for data collection: The tool used for collecting the data is through the questionnaire.3. while the greater the value of Chi-Square is .

E = Expected Frequency The calculated value of chi-square is compared with the table value of chi-square for given degrees of freedom of specified level of significance.the total of sample observations. i. If the calculated value of chi-square is greater than the table value the difference between the theory and the observed is considered to be significant.. it could not have risen due to fluctuations of simple sampling. we place one restriction on the expected distribution .. Formula: Number of respondents Total no. For a uniform distribution. i.e. Percentage as also used to describe relationship. of respondent × 100 .Where O = Observed Frequency. On the other hand if the calculated value is less than the table value. PERCENTAGE ANALYSIS: Percentage refers to a special kind of ratio. It is also used to compare the relative terms of two or more series of data. it could have risen due to fluctuations of sampling. The number of degrees of freedom is described as the number of observations that are free to vary after certain restrictions have been imposed on the data. Percentage is used in making comparison about two or more series of data. the difference between the theory and observation is not considered significant.e.

This method is also facilitators the respondent to answer in some other way on other alternative is provided as a choice.3.5. 3. CHAPTER – 4 ANALYSIS AND INTERPRETATION .3 AREA OF THE STUDY To study the Impact of Performance Appraisal System at SPAN Systems.5. Bangalore.4 CLOSED-ENDED QUESTIONS Such questions are also called fixed alternative questions.

4. Simple percentage 88 12 Figure 1 sex of the respondents 100 90 80 e 70 g 60 a t n 50 e c 40 r e p 30 20 10 0 88 12 male sex female Table 2 . of respondent s Male 132 female 18 Source: Primary data Inference From the above table it is inferred that out of 50 respondents 88% of them are male and 12% of the respondents are female.1 ANALYSIS OF THE DATA Table 1 Table showing Sex of the respondents sex no.

Figure 2 Table 3 . of respondent s 15 42 27 27 39 Simple percentage 10 28 18 18 26 Source: Primary data Inference The above table shows that 28% of the respondents are between the ages 24-28. 18% of the respondents are 29-33 and 34-38 and only 10% of the respondents are between the ages 19-23.Table showing age group of the respondents Age group 19-23 24-28 29-33 34-38 Above 38 No. 26% of the respondents are above 38.

20% of the respondents are joined during 91-2000. Figure 3 date of joining 80 60 40 20 0 68 2 10 20 date of joining .Table showing the date of joining of the respondents Date of joining 71-80 81-90 91-2000 2001-07 No of respondent s 03 15 30 102 Simple percentage 02 10 20 68 Source: Primary data Inference The above table 68% of the respondents are joined during 2001-07. 10% of the respondents are joined during 81-90 and 2% of the respondents are joined during 71-80.

4 27.Table 4 Table showing the preference of the appraisal Preference of appraisal No of respondent s Peers 15 Subordinates 21 Supervisors 114 Source: Primary data Inference The above table shows that 65% of the respondents prefer supervisors appraisal. 20% of the respondents prefer subordinates appraisal and remaining 10% of the respondents prefer peers appraisal.4 Preference of Appraisal s r e p s e t a n Table 5 i d r o b u s i v r e p u s r o s . Simple percentage 10 14 76 Figure 4 preference of appraisal 100 80 60 40 20 0 90 20.

12% of the respondents prefer quality alone and 8% of the respondents prefer target alone. Figure 5 Table 6 .Table showing the basis of the performance appraisal No of respondent s 18 12 120 Simple percentage 12 08 80 Basis of performance appraisal Quality Target Both Source: Primary data Inference The above table shows that 80% of the respondents prefer both the quality and target for their basis of performance appraisal.

Table showing frequency of the appraisal system Frequency of appraisal Monthly Half yearly Annual 360 degree No of respondents 09 60 75 06 Simple percentage 06 40 50 04 Source: Primary data Inference From the above table shows that 50% of the respondents prefer annual appraisal. 6% of the respondents prefer monthly appraisal and 4% of the respondents prefer 360 degree appraisal. Figure 6 Table 7 . 40% of the respondents prefer half yearly appraisal.

10% of the respondents prefer results alone.Table showing performance appraisal Performance appraisal based on Personality traits Behaviour Results All the above No of respondent s 06 09 15 120 Simple percentage 04 06 10 80 Source: Primary data Inference From the above table shows that 80% of the respondents prefer personality traits. 6% of the respondents prefer behaviour. behaviour and results. 4% of the respondents prefer personality trait Figure 7 Table 8 .

Figure 8 . 12% of the respondents prefer subjective alone and 12% of the respondents prefer objective alone.Table showing types of appraisal Types of appraisal Subjective Objective Both No of respondent s 18 18 114 Simple percentage 12 12 76 Source: Primary data Inference The above table shows that 76% of the respondents prefer both subjective and objective factors.

any discrimination Yes No No of respondent s 48 102 Simple percentage 32 68 Source: Primary data Inference The above table shows that 68% of the respondents said that there is no gender discrimination and the remaining 32% said there is gender discrimination. Figure 9 Table 10 .Table 9 Table showing any gender discrimination Based on gender.

3% of the respondents are strongly agree with the daily contact and 2% of the respondents are strongly disagree with the daily contact. 20% of the respondents are disagree with the daily contact.Table showing daily contact at the time of appraisal Daily contact at the time of appraisal SA A NC D SD No of respondents 09 72 30 33 06 Simple percentage 06 48 20 22 4 Source: Primary data Inference The above table that 48% of the respondents agree that they are having daily contact. 22% of the respondents are having no comment. Figure 10 Table 11 .

Figure 11 . 20% of the respondents given no comment. 14% of the respondents are strongly agree with the feedback and 2% of the respondents are strongly disagree with the feedback given at the time of appraisal. 8% of the respondents are disagree with the feedback.Table showing feedback given at the time of appraisal Feedback given at the time of appraisal SA A NC D SD No of respondent s 21 84 30 12 03 Simple percentage 14 56 20 08 02 Source: Primary data Inference The above table shows that 56% of the respondents are agree with the feedback given at the time of appraisal.

24% of the respondents given no comment based on their evaluation.6% of the respondents are disagree with the evaluation and 4% of the respondents are strongly disagree with the evaluation of strength and weaknesses.Table 12 Table showing appraisal evaluates strength and weaknesses Appraisal evaluates strength and weaknesses SA A NC D SD No of respondent s Simple percentage 36 63 36 09 06 24 42 24 06 04 Source: Primary data Inference The above table shows that 42% of the respondents agree with evaluating their strength and weaknesses. Figure 12 . 24% of the respondents are strongly agree with their evaluation.

10% of the respondents are strongly agree with evaluation of skill gaps and 8% of the respondents are disagree with the evaluation of the skill gaps. No of respondent s 15 84 39 12 00 Simple percentage 10 56 26 08 00 Figure 13 . 26% of the respondents given no comment.Table 13 Table showing exactly evaluates the skill gaps Exactly evaluates the skill gaps SA A NC D SD Source: Primary data Inference The above table shows that 56% of the respondents are agree with evaluation of skill gaps.

Table 14 Table showing is the organization providing effective training Organizatio n providing effective training SA A NC D SD No of respondent s 36 48 54 09 03 Simple percentage 24 32 36 06 02 Source: Primary data Inference The above table shows that 36% of the respondents given no comment regarding effective training. Figure 14 Table 15 . 32% of the respondents are agree with the effective training. 6% of the respondents are disagree with the effective training and 2% of the respondents are strongly disagree with the effective training. 24% of the respondents are strongly agree with the effective training.

Table shows is the appraisal helps in personal growth Appraisal helps in personal growth SA A NC D SD No of respondent s 36 69 39 06 00 Simple percentage 24 46 26 04 00 Source: Primary data Inference The table shows that 46% of the respondents are agree with their personal growth. 24% of the respondents are strongly agree with their personal growth and 4% of the respondents are disagree with their personal growth. 26% of the respondent’s given no comment. Figure 15 .

Figure 16 .Table 16 Table shows appraisal helps in promotion aspects Appraisal helps in promotion aspects SA A NC D SD No of respondent s 45 81 15 09 00 Simple percentage 30 54 10 06 00 Source: Primary data Inference The table shows that 54% of the respondents are agree with the promotion aspects. 10% of the respondents given no comment and 6% of the respondents are disagree with the promotion aspects. 30% of the respondents are strongly agree.

Chart 17 .Table 17 Table shows recommendation for job rotation Recommendation for job rotation Yes No No of respondents 120 30 Simple percentage 80 20 Source: Primary data Inference The above table shows that 80% of the respondents recommended for their job rotation and 20% of the respondents are not recommended the job rotation for their development.

No of respondent s 135 15 Simple percentage 90 10 Figure 18 recommendation for job enlargement 100 80 60 40 20 0 yes no 10 recommendation for job enlargement Table 19 Table shows ideas to recommend for their 90 development .Table 18 Table shows recommendation for job enlargement Recommendatio n For job enlargement Yes No Source: Primary data Inference The above table shows that 90% of the respondents recommended for their job enlargement and 10% of the respondents are not recommended the job enlargement for their development.

Figure 19 Ideas to recommend for their development 45 40 35 30 25 20 15 10 5 0 yes 10 40 Ideas to recommend for their development no Table 20 Table shows face to face interaction with the supervisor .Ideas to recommend for their development Yes No Source: Primary data Inference No of respondent s 30 120 Simple percentage 20 80 The above table shows that 80% of the respondents recommended their ideas for their development and 20% of the respondents are not recommended their ideas for their development.

Face to face interaction with supervisor No of respondent s 105 45 Simple percentage Yes No Source: Primary data Inference 70 30 The above table shows that 70% of the respondents are agreeing with face to face interaction with the supervisor and 30% of the respondents are not agree with the face to face interaction with the supervisors. Figure 20 Table 21 Table shows opportunities to improve performance .

Figure 21 Opportunities to improve performance Table 22 Table shows appraisal changes your attitude/behaviour .Opportunities to improve performance Yes No Source: Primary data Inference No of respondent s 129 21 Simple percentage 86 14 The above table shows that 86% of the respondents are agree with their opportunities given by the organization and 14% of the respondents are not agree with the opportunities given by the organization.

Appraisal changes your Attitude /Behaviour Yes No Source: Primary data Inference No of respondent s 105 45 Simple percentage 70 30 The above table shows that 70% of the respondents are agree with the changes in attitude and behaviour ant the remaining 30% of the respondents are disagree with the changes in attitude/behaviour during appraisal period. Figure 22 Appraisal changes your Attitude/Behaviour 80 70 60 50 40 30 20 10 0 70 30 Appraisal changes your attitude yes no Table 23 Table shows satisfied with CFR .

Figure 23 .Satisfied with CFR Yes No Source: Primary data Inference No of respondent s 120 30 Simple percentage 80 20 The above table shows that 80% of the respondents are satisfied with CFR ratings and the remaining 20% of the respondents are dissatisfied.

Table 24 Table shows increase of salary by performance ratings Performance ratings increase your salary Yes No Source: Primary data Inference The above table shows that 78% of the respondents are satisfied with the increase of salary through performance ratings and the remaining 22% of the respondents are dissatisfied. No of respondent s 117 33 Simple percentage 78 22 Figure 24 .

Table 25 Table shows happy with present appraisal system Happy with present appraisal Yes No Source: Primary data Inference The above table shows that 76% of the respondents are happy with the present appraisal system and 24% of the respondents are unhappy with the present appraisal system. No of respondent s 114 36 Simple percentage 76 24 Figure 25 .

Ei)2 Ei . 19-23 24-28 29-33 34-38 Above 38 TOTAL SUBJECTIVE 09 09 18 OBJECTIVE 06 06 06 18 BOTH 27 27 21 39 114 TOTAL 15 42 27 27 39 150 Null Hypothesis There is no relationship between Age group of the respondents and the preference of performance appraisal types.4.2 HYPOTHESIS TESTING Chi-square test to find out the comparison between Age group of the respondents and the preference of performance appraisal types. Alternative Hypothesis There is relationship between Age group of the respondents and the preference of performance appraisal types. Level of Significance 5% level of significance Test Statistics X2 = (Oi.

8 11.24 3.206 10.42 significance is 15.64 129.95 Inference The calculated value is 80.497 7.1 FINDINGS OF THE STUDY • • 88% of the respondents were male.2304 21.8 11.617 0.902 87. CHAPTER 5 5.96 15.Calculation Oi 9 6 0 9 6 27 0 0 27 0 6 21 0 0 39 Ei 1.609 (Oi.92 3.9216 24.52 3.75 3. (5-1) (3-1) for 5% level of 80.507.68 4.68 29.24 3.497 10.68 0. Majority of the respondents (28%) are between the age of 24-28 and the low level (10%) was between the age of 19-23.04 3. The null hypothesis is rejected and the alternative hypothesis i.990 10.Ei)2/ Ei 28.11 0.497 41..23 2.011 4.52 4. There is relationship between Age group of the respondents and the preference of performance appraisal types is accepted.04 31.67 2.4 3.18 0.8 1..23 2.8 9.24 20.23 3.Ei)2 51.42 where as the tabulated value for (r-1) (c-1) i.902 21.64 (Oi.e.35 0.24 20.4 5.67 4.84 17.e.04 5. . Thus calculated value is greater than the tabulated value.

65% of the respondents prefer supervisors for their appraisal and the low level 10% prefer peers for their appraisal. 36% of the respondents having no comment based on effective training after appraisal review and the low level 2% were strongly disagree. 46% of the respondents are agree with the personal growth of the individuals and the low level 4% were disagree. 56% of the respondents are agree with evaluation of skill gaps and the low level 8% were disagree with this. 42% of the respondents are agree with evaluation of the strength and weaknesses at the time of appraisal and the low level 4% were strongly disagree. • • • • • • • • • • 76% of the respondents prefer both (subjective and objective) the appraisal and the low level 12% prefer subjective and objective appraisal. • • 50% of the respondents prefer the frequency of appraisal as annual and the low level 4% prefer 360 degree. 54% of the respondents are agree with the promotional aspects through appraisal and the low level 6% were disagree. .• • • 68% of the respondents are joined in the year of 2001-07 and the low level 2% were joined in the year of 1971-80. 68% of the respondents said that there is no gender discrimination. behaviour and results) and the low level 4% prefer personality traits. 80% of the respondents are recommended for job rotation. 56% of the respondents are agree with feedback given at the time of appraisal and the low level 2% were strongly disagree. 48% of the respondents are agree with daily contact at the time of appraisal and the low level 2% were strongly disagree. 80% of the respondents prefer both the quality and target for their basis of performance appraisal and low level 8% prefer target for their basis of performance appraisal. 80% of the respondents prefer that performance appraisal should be based on all(personality traits.

70% of the respondents are agreeing with the face to face interaction with the supervisor. The chi-square analysis show that the comparison between the age of the respondents and types of appraisal level calculated value of x2.2 SUGGESTIONS 5.1 SUGGESTIONS BY THE EMPLOYEES The organization should conduct the following programmes for their development which are . 70% of the respondents are agreeing with the changes in attitude/behaviour after appraisal.• • • • • 90% of the respondents are recommended for job enlargement. 20% of the respondents recommended some ideas for their development.2. 86% of the respondents are agreeing with opportunities to improve their performance after appraisal. 5. • • • • 80% of the respondents are satisfied with CFR ( critical factor ratings ) 78% of the respondents are agreeing with increase in their salary through CFR ratings. 76% of the respondents are happy with the present appraisal system.

.2 SUGGESTIONS BY THE RESEARCHER • The company should conduct effective training after the performance appraisal for their employees to improve their performance and also CFR ratings should be discussed with the employees at the time of performance appraisal review.• • 3 Modelling software Seminars in some of the functional areas like Technical aspects Business overview Latest technology 5.2.

• The company should give combination of both (subjective and objective) appraisal and it should be of half yearly. • Once an employee is evaluated. 5. Performance Appraisal System followed at SPAN systems was evaluated and found to be good. • The appraiser should keep on contact with the employees and motivate them for their growth and also to achieve the organizational goals. By providing suitable training and development programmes. he/she should be given proper information about performance appraisal system and its impact towards his/her job. . he/she will improve their strengths and weaknesses and also it helps to increase the productivity of the organisation. • When an employee is newly joined in an organisation. the concern organisation can improve the existing performance appraisal system. This project work also reveals the gaps in the existing system.3 CONCLUSION In this study. An employee should aware of the above. he/she has to be informed about their strength and weaknesses.

. • R. New age international publishing. • Donald R Cooper. Pamela S Schindler – Business Research Methods.Overall. this project work helps to understand every aspects of performance appraisal system. Tata MC Graw Hill. ninth edition.Research Methodology Methods and Techniques. REFERENCES • VSP Rao – Human Resource Management. second edition. 2005 ninth edition. Kothari . Anurag Jain for excel books.

spansystems.google. Half of Indian private limited 2004 ninth edition. Gary Dessler – Human Resource Management Prentice.• • Performance management – Michael Armstrong and Angela Baron.com APPENDIX IMPACT OF PERFORMANCE APPRAISAL SYSTEM 1.com Website : www.23 b) 24 . Your age group? a) 19 .33 d) 34 – 38 e) above 38 4. • • Website : www. Date of joining : ___________________ : ___________________ : a) Male b) Female .28 c) 29 . Designation 5. Sex 3. Name (optional) : ___________________ 2.

The frequency of appraisal should be a) Monthly b) Half yearly c) Annual d) 360 degree 9. Whose appraisal do you prefer? a) Peers b) Subordinates c) Superiors 7.6. Which type of performance appraisal do you prefer? . Appraiser appraised your performance based on a) Personality traits b) Behavior c) Results d) All the above 10. Performance appraisal should be based on your a) Quality b) Target c) Both 8.

you are allowed to give feedback. Yes/No The following questions are graded on a 5 point scale: 1 – Strongly agree 2 – Agree 3 – No comment 4 – Disagree 5 – Strongly disagree 1 12. The organization is providing effective training program for skill enhancement after your appraisal period. Based on the gender. During appraisal process. 16. During appraisal. Do you think the performance appraisal evaluates your strengths and weaknesses? 15. .a) Subjective performance appraisal b) Objective performance appraisal c) Combination of both 11. The appraiser exactly evaluated the skill gaps within you. performance appraisal varies. 2 3 4 5 13. the appraiser had daily contact with you. 14.

Were opportunities given to you to improve your performance? Yes/No 24. The appraisal system helps in your future promotion prospects. At the time of appraisal documentation review. 22. Do you recommend job enlargement for your development? Yes/No 21.17. did you have face to face interaction with your appraiser? Yes/No 23. Performance appraisal helps in your personal growth. 18. Does the performance appraisal review actually change your attitude / behaviour? Yes/No . 19. Do you recommend job rotation for your development? Yes/No 20. Please specify___________________________. Do you have any ideas to recommend for your development? Yes/No If yes.

Strict confidentiality will be maintained and no details will ever be revealed to others. .25. Specify your suggestions. This survey is only for educational purpose. is there any increase in the salary? Yes/No 27. Are you happy with the present appraisal system? Yes/No 28. Are you satisfied with the critical factor ratings? Yes/No 26. Based on the performance ratings. Do you have any comments on existing performance appraisal in your Enterprise.

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