TOPIC:

A Comparative Study of Performance appraisal in Manufacturing and Service sector

INTRODUCTION:-
In recent years, the service industry in India has achieved rapid growth, not only in
terms of productivity but also in the percentage of the labour employed as compared
with the manufacturing industry and has become India's largest industry. But it is
becoming clear that management theories developed for manufacturing may not be
wholly applicable to service firms. Evidence suggests that economic rents tend to
occur at the business level in manufacturing, whereas they arise at the corporate
level in services

To compete in today's global markets, organizations strive to deliver their products

and services in both an efficient and effective manner. In the business world
investment is made in machinery, equipment and services. Quite naturally time and
money is spent ensuring that they provide what their suppliers claim. In other words
the performance is constantly appraised against the results expected. When it
comes to one of the most expensive resources companies invest in, namely people,
the job appraising performance against results is often carried out with the same
objectivity. Each individual has a role to play and management has to ensure that the
individual’s objectives translate into overall corporate objectives of the company.

Performance appraisal is a formal system that evaluates the quality of an employee’s

performance. An appraisal should not be viewed as an end in itself, but rather as an
important process within a broader performance management system that links:
‡
Organisational objectives
‡
Day-to-day performance
‡
Professional development
‡
Rewards and incentives

In simple terms, appraisal may be understood as the assessment of an individual’s

performance in a systematic way, the performance being measured against such
factors as job knowledge, quality, and quantity of output, initiative, leadership
abilities, supervision, dependability, co-operation, judgment, versatility, health, and
the like. Assessment should not be confined to past performance alone. Potentials of
the employee for future performance must also be assessed. A formal definition of
performance appraisal is:³It is the systematic evaluation of the individual with respect
to his or her performance on the job and his or her potential for development

A more comprehensive definition is: ³Performance appraisal is a formal, structured

system of measuring and evaluating an employee’s job related behaviours and
outcomes to discover how and why the employee is presently performing on the job
and how the employee can perform more effectively in the future so that the
employee, organization, and society all benefit
This dissertation will try to find out the differences In setting performance standards
in both the sectors and will try to find out the points of difference in them and suggest
remedial measures in case of deviations.

RESEARCH OBJECTIVES:

 To examine the need for appraisal system in an organization.

 To critically evaluate appraisal system in organizations from manufacturing and service

sector.

 To find out the best practices of the appraisal system that could be applied to both sectors
and suggest appropriate recommendations for the same.

.METHODOLOGY:
The research work will be doctrinal in nature. The method of data collection will be
the books, websites, journals and magazines and articles available relating to the
subject for better understanding of the topic as well as one to one interaction with
various employees of Companies. The deductive approach methodology of research
will be followed to analyse the topic from cases and principles cited.. The research
will try to imbibe the case studies through case study method which includes the
secondary methods of data collection and if limitation prevails, the unstructured
interview of the respondents.

TENTATIVE CHAPTERIZATION

A. Research Design

B. Acknowledgement

C. Index

D. Executive Summary

E. Chapters

INTRODUCTION

1.The chapter starts with the definition of Human resource management. Then the
chapter moves on to the essence of human resource management in corporations.
The next section explains performance appraisal as an important tool of HRM. The
chapter ends with the need for performance appraisal in every organization.

2. Human resource management in service and manufacturing sector.

The main emphasis in this chapter would be the difference between the Human
resource management in manufacturing sector and service sector. The chapter will
then roll down to various practices prevalent for Human resource management in
service sector.
3. Introduction to the companies
This chapter includes the introduction to the companies which will be the universe of
the study.

4. Appraisal in Service sector

This chapter explains the various techniques employed in the service sector. It would
elaborate the need of performance appraisal in service sector and the best practices
employed by the company. It also examines the results or outcomes of such
practices.

5. Appraisal in manufacturing sector

This chapter explains the various techniques employed in the manufacturing sector.
It would elaborate the need of performance appraisal in manufacturing sector and
the best practices employed by the company. It also examines the results or
outcomes of such practices.

6. Challenges in appraisal techniques

The chapter will try to explain the comparison between the challenges in
implementing the appraisal policies. The section will then move to explain the
individual challenges faced and the actions taken to tackle them

7. Analysis
This chapter will analyse the policies studied and try to find out the major differences
in service sector and manufacturing sector. This will help to analyse the best
practices that could be employed.

8. SUGGESTION

9. CONCLUSION

10. LIMITATION

BIBLIOGRAPHY