1.

INTRODUCTION

1.1 PERFORMANCE APPRAISAL

Performance appraisal is the process of obtaining, analyzing and recording

information about the relative worth of an employee. The focus of the performance
appraisal is measuring and improving the actual performance of the employee and also the
future potential of the employee. Its aim is to measure what an employee does.

It is a powerful tool to calibrate, refine and reward the performance of the

employee. It helps to analyze his achievements and evaluate his contribution towards the
achievements of the overall organizational goals.

By focusing the attention on performance, performance appraisal goes to the heart

of personnel management and reflects the management’s interest in the progress of the
employees.

People differ in their abilities and their aptitudes. There is always some difference
between the quality and quantity of the same work on the same job being done by two
different people. Therefore, performance management and performance appraisal is
necessary to understand each employee’s abilities, competencies and relative merit and
worth for the organization. Performance appraisal rates the employees in terms of their
performance.

Performance appraisal takes into account the past performance of the employees
and focuses on the improvement of the future performance of the employees. Here at
naukrihub, we attempt to provide an insight into the concept of performance appraisal, the
methods and approaches of performance appraisal, sample performance appraisal forms
and the appraisal software’s available etc. An attempt has been made to study the current
global trends in performance appraisal.

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1.1.1 EMPLOYEE PERFORMANCE

If employee performance is found to be less than the expected level of performance

then this must be investigated and, if appropriate, a formal appraisal should be carried out
including 360-degree feedback. The root causes of performance must be identified as these
will determine future actions. Root causes for less than expected performance may include:

• Personal issues that are impacting performance such as bereavement, close family
member sickness, financial or relationship worries
• Workplace issues that are impacting performance such as helping other colleagues
to meet their objectives before own objectives, issues with the work environment
such as an excessively noisy office or frequent interruptions
• Overloaded with too many objectives or conflicting priorities, especially in a matrix
management environment
• Team issues such as working relationship with other team members, dependencies
on others to complete their objectives first, access to needed tools, experts or third-
party suppliers
• Employee development issues such as lack of training, experience or expertise to
complete the required objective, or lack of people skills to work and deal
effectively with others in the situations the employee is in

1.1.2 OBJECTIVES OF PERFORMANCE APPRAISAL:

• To review the performance of the employees over a given period of time.

• To judge the gap between the actual and the desired performance.
• To help the management in exercising organizational control.
• Helps to strengthen the relationship and communication between superior –
subordinates and management – employees.
• To diagnose the strengths and weaknesses of the individuals so as to identify the
training and development needs of the future.
• To provide feedback to the employees regarding their past performance.

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 • Provide information to assist in the other personal decisions in the organization.
• Provide clarity of the expectations and responsibilities of the functions to be
performed by the employees.
• To judge the effectiveness of the other human resource functions of the
organization such as recruitment, selection, training and development.
• To reduce the grievances of the employees.

If employee development is required for performance improvement then solving

these performance problems should be straightforward with a clear understanding of root
causes. Possible approaches include changing the work environment, better prioritisation
of conflicting priorities, time off, additional training, shadow or buddy system, mentoring
or coaching, changing team environment or set objectives and so on.

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 1 .2 INDUSTRY PROFILE

1.2.1 HISTORY

The first practical automobile with a Petrolengine was built by Karl Benz in 1885
in Mannheim, Germany Benz was granted a patent for his automobile on 29 January 1886,
and began the first production of automobiles in 1888, after Bertha Benz his wife, had
proved with the first long-distance trip in August 1888 - from Mannheim to Pforzheim and
back - that the horseless coach was absolutely suitable for daily use. Since 2008 a Bertha
Benz Memorial Route commemorates this event.

Soon after, Gottlieb Daimler and Wilhelm Mabuchi in Stuttgart in 1889 designed a
vehicle from scratch to be an automobile, rather than a horse-drawn carriage fitted with an
engine. They also are usually credited as inventors of the first motorcycle in 1886, but
Italys Enrico Bernardi of the University of Padua in 1882, patented a 0.024 horsepower
(17.9 W) 122 cc (7.4 cu in) one-cylinder petrol motor, fitting it into his son's tricycle
making it at least a candidate for the first automobile, and first motorcycle;. [9]:p.26 Bernardi
enlarged the tricycle in 1892 to carry two adults.

1.2.2 AUTOMOTIVE INDUSTRY

The automotive industry designs, develops, manufactures, markets, and sells the
world's motor vehicles. In 2009, more than 88 million motor vehicles, including cars and
commercial vehicles were produced worldwide.

In 2009-2010, a total of 90 million new automobiles were sold worldwide: 24

million in Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 14.4
million in Latin America, 6.4 million in the Middle East and 7.4 million in Africa.[2] The
markets in North America and Japan were stagnant, while those in South America and
Asia grew strongly. Of the major markets, Russia, Brazil, India and China saw the most
rapid growth.

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 About 250 million vehicles are in use in the United States. Around the world, there
were about 806 million cars and light trucks on the road in 2009; they burn over 260
billion gallons of gasoline and diesel fuel yearly. The numbers are increasing rapidly,
especially in China and India. In the opinion of some, urban transport systems based
around the car have proved unsustainable, consuming excessive energy, affecting the
health of populations, and delivering a declining level of service despite increasing
investments. Many of these negative impacts fall disproportionately on those social groups
who are also least likely to own and drive cars. The sustainable transport movement
focuses on solutions to these problems.

In 2009, with rapidly rising oil prices, industries such as the automotive industry,
are experiencing a combination of pricing pressures from raw material costs and changes
in consumer buying habits. The industry is also facing increasing external competition
from the public transport sector, as consumers re-evaluate their private vehicle usage.[7]
Roughly half of the US's fifty one light vehicle plants are projected to permanently close in
the coming years with the loss of another 200,000 jobs in the sector, on top of the 560,000
jobs lost this decade. As a result, in 2010, China became the largest automobile market in
the world

1.2.3 TWO WHEELERS IN INDIA

India is the second largest producer of two-wheelers in the world. In the last few
years, the Indian two-wheeler industry has seen spectacular growth. The country stands
next to China and Japan in terms of production and sales respectively.

Majority of Indians, especially the youngsters prefer motorbikes rather than cars.
Capturing a large share in the two-wheeler industry, bikes and scooters cover a major
segment. Bikes are considered to be the favourite among the youth generation, as they help
in easy commutation.

Large variety of two wheelers is available in the market, known for their latest technology
and enhanced mileage.

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 With over a billion plus population, the bike industry in India has witnessed
enormous growth in the last decade. Bikes in India encompass a major portion of the
Indian two-wheeler industry. With changing market dynamics, bikes have slowly started
replacing the scooter and mopeds. Consuming a large share in the Indian two-wheeler
industry, bikes have come to represent style and class for many Indian men and a few
women as well.

1.2.4 INDIA YAMAHA MOTOR PVT. LTD.

Yamaha made its initial foray into India in 1985. It entered into a 50:50 joint
venture with the Escorts Group in 1996. In August 2001, Yamaha acquired its remaining
stake becoming a 100% subsidiary of Yamaha Motor Co., Ltd, Japan (YMC). In 2008,
YMC entered into an agreement with Mitsui & Co., Ltd. to become a joint investor in the
motorcycle manufacturing company "India Yamaha Motor Private Limited (IYM)". IYM
operates from its state-of-the-art-manufacturing units at Surajpur in Uttar Pradesh and
Faridabad in Haryana and produces motorcycles both for domestic and export markets.
With a strong workforce of more than 2000 employees, IYM is highly customer-driven and
has a countrywide network of over 400 dealers. Presently, its product portfolio includes
MT01 (1670 cc), YZF-R1 (998 cc), the all new YZF-R15 (150 cc), FZ16, FZ-S, Fazer
(153cc), Gladiator Type SS & RS (125 cc), Gladiator Graffiti (125cc), G5 (106 cc), Alba
(106 cc) and Crux (106 cc).

1.2.4.1 DEALERS

Our Brand Image speaks for itself. Complementing the Marketing team is our vast
and strong Dealer network - the backbone of our vital marketing operations.

Recent initiatives have been launched by Yamaha in the field of business-to-

business as well as business-to-consumer cooperation with Dealers. The new showrooms
based on YAMAHA VISUAL IDENTITY are one of the many steps in this direction.

Our dealer network works on the "3S" fundamentals of -SALES SERVICE and

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SPARE PARTS under one roof. With a strongly dedicated team of Sales and Service
engineers, IYM targets the fulfillment of customer's needs. Every single customer matters
to us. Together the 3S operate in tandem to serve our customer and forge an everlasting
bond with them.

CUSTOMER SATISFACTION is our motto and we remain steadfast in our

commitment to our valued customers...Offering Nothing But the Very BEST to Them.

1.2.4.2 EXPORTS

IYM is an active player in the exports market. Currently, we export motorcycles to

50 countries including Argentina, Mexico, Philippines, Bangladesh, Sri Lanka, Columbia,
Dominican Republic, Nigeria and lvory Coast. The export Product line boasts of RX 100,
Crux, YD 125, Enticer and Libero.

To consolidate our position in the exports arena, we are rapidly expanding our
presence in Asia, Africa, Central and South America.

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 1.3 COMPANY PROFILE

1.3.1 ABINAYA AUTO

Abinaya Auto’s was started in the year 2002 at Nagai, Tamil Nadu. The company is
started by Mr. R. Jothiraman, along 25 employees. The company is dealing with Yamaha
Bike sales and service. Abinaya Auto has a wide distribution network all over the Tamil
Nadu with 3 branches.

Abinaya Auto’s has the branches in the following areas,

 Nagai
 Karaikkal
 Thiruvallur

NAGAI BRANCH

The Nagai branch is taking care by Mr. Jothiraman, proprietor of the company. The
Nagai branch consists of 50 employees in the respective departments.

KARAIKAL BRANCH

The Karaikkal branch is taking care by Mr. Vijay, manager of the branch. The
Karaikkal branch consists of 20 employees in the respective departments.

THIRUVALLUR BRANCH

The Thiruvallur branch is taking care by Mr. Vinod, manager of the branch. The
Thiruvallur branch consists of 30 employees in the respective departments

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1.3.2 DEPARTMENT

There are four departments in the company, they are,

 Customer Care
 Sales
 Service

The customer care department is taking care of queries of customers and booking of the
bikes. Sales department is taking care of delivering the bike in time. Service department is
taking care of free service and maintenance of the bike at the customer’s satisfaction level.

At present Abinaya Auto has 100 employees and widely distributing the bike all
over Tamil Nadu. The company is giving opportunity to do the apprentice for the diploma
holders. At presently there are 7 apprentices in the company.

The company provides best model of bikes as well as services to the Yamaha Bike.
The Company has the infrastructure for the service of the vehicles in good manner and on-
time delivery. Abinaya Auto offer various facility to its customers like delivering the bike,
giving free service to the customers to their complements, attending their queries – and
providing solution, etc.

The company employs a strong sales force so that they can operate the extensive
sales network successfully.

The company went on developing with latest technology and young generation’s
idealist works on this field which leads to high quality-level, quality control, which
increases its reputation and goodwill and also established classical standards in the industry
like perfection, reliability and quality.

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 The company also supplies the new category of bikes and spare parts which make
more satisfaction to the customers.

1.4 OBJECTIVES OF THE STUDY

PRIMARY

To study the performance appraisal of employees at Abinaya Auto’s

SECONDARY

 To study the purpose of performance appraisal conducted at Abinaya Auto’s.

 To understand the opinion of employees towards performance appraisal at Abinaya

Auto’s.

 To identify the effect of performance appraisal on individual and organizational

development.

 To understand the existing relationship between management and employees.

 To identify ways to improve the existing performance appraisal system.

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 1.5 SCOPE OF THE STUDY

 The management can identify the employee’s opinion of the existing performance
appraisal system.
 The study can be used to make the present appraisal system more effective and
satisfied among employees.
 It could be used to identify training and development needs for the individual and
the organization as a whole.

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 1.6 LIMITATION OF THE STUDY

 Some of the questionnaires were incomplete.

 The result of the study are subject to bias and prejudices of the respondents

 Unwillingness and inability of the respondent to provide true information.

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 2. REVIEW OF LITERATURE

Performance appraisal is one of the most important requirements for all successful
business and human resource policy (Kressler, 2003). Rewarding and promoting effective
performance in organization, as well as identifying ineffective performers for resource
management (Pulakos, 2003). The ability to conduct performance appraisal relies on the
ability to assess an employee’s performance in a fair and accurate manner. Evaluating
employee performance is a difficult task. Once the supervisor understands the nature of the
job and the source of information, the information needs to be collected in a systematic
way, provided as feedback, and integrated into the organization’s performance
management process for use in making compensation, job placement and training decisions
and assignment (London, 2003). After a review of literature, a performance appraisal
model will be described in detail. The model discussed is an example of a performance
appraisal system that can be implemented aim a large institution of higher education,
within the Student Affair division. The model can be applied to top-level, middle-level and
lower-level employees. Evaluation instruments (forms) are provided to assist with
implementation the appraisal system.

Performance evaluations have been conducted since the times of Aristotle (Landy,
Zedeck, Cleveland, 1983). The earliest formal employee performance evaluation program
is thought to have originated in the United States military establishment shortly after the
birth of the republic (Lopez, 1968). The measurement of an employee’s performance
allows for rational administrative decisions at the individual employee level. It also
provides for the raw data for the evaluation of the effectiveness of such personnel-system
components and processes as recruiting policies, training programs, selection rules,

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promotional strategies, and reward allocations (Landy, Zedeck, Cleveland, 1983). In
addition, it provides the foundation for behaviorally based employee counseling. In the
counseling setting, performance information provides the vehicle for increasing
satisfaction, commitment, and motivation of the employee. Performance measurement
allows the organization to tell the employee some thing about their rates of growth, their
competencies, and their potentials. There is little disagreement that if well done,
performance measurements and feedback can play a valuable role in effecting the
organization (Landy, Zedeck, Cleveland, 1983).

PURPOSE

Performance appraisals should focus on three objectives: performance, not

personalities; valid, concrete, relevant issues, rather that subjective emotions and feelings;
reaching agreement on what the employee is going to improve in his performance and what
you are going to do (McKirchy, 1998). Both the supervisor and employee should
recognize that a strong relationship exists between training and performance evaluation
(Barr, 1993). Each employee should be allowed to participate in periodic sessions to
review performance and clarify expectations. Both the supervisor and the employee should
recognize these sessions as constructive occasions for two-way should include
opportunities for self-assessment as well as supervisor feedback.

The supervisor should keep in contact with the employee to assure the training
experiences are producing desired impact (Barr, 1993). A portion of the process should be
devoted to an examination of potential opportunities to pursue advancement of acceptance
of more complex responsibilities. The employee development goals should be recognized
as legitimate, and plans should be made to reach the goals through developmental
experiences or education (Barr, 1993). Encouraging development is not only a
supervisor’s professional responsibility, but it also motivates an employee to pursue
additional commitments. In addition, the pursuit of these objectives will also improve the
prospect that current employees will be qualified as candidates when positions become
available. This approach not only motivates current performance but also assists the
recruitment of current employees as qualified candidates for future positions (Barr, 1993).

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BENEFIT OF PRODUCTIVE PERFORMANCE APPRAISALS

Employee learns of his or her own strengths in addition to weaknesses.- New goal
and objectives are agreed upon. Employee is an active participant in the evaluation
process. The relationship between supervisor and employees is taken to an adult-to-adult
level. Work teams may be restructured for maximum efficiency. Employee renews his or
her interest in being a part of the organization now and in the future. Training needs are
identified. Time is devoted to discussing quality of work without regard to money issues.
Supervisor becomes more comfortable in reviewing the performance of employees.
Employees feel that they are taken seriously as individuals and that the supervisor is truly
concerned about their needs and goals. (Randi, Toler, Sachs, 1992).

PITFALLS TO AVOID

When conducting performance appraisals on any level, it is important to keep in

mind the common pitfalls to avoid.
These pitfalls may include but are not limited to:-
1. Bias/prejudice- Race, religion, education, family background, age, and/ or sex.

2. Trait assessment – Too much attention to characteristics that have nothing to do

with the job and are difficult to measure.

3. Over-emphasis on favorable or unfavorable performance of one or two tasks which

could lead to an unbalanced evaluation of the overall contribution.

4. Relying on impressions rater than facts.

5. Holding the employee responsible for the impact of factors beyond his/her control.

6. Failure to provide each employee with an opportunity for advance preparation

(Maddux, 1993).

LEGAL IMPLICATIONS

Any performance appraisal system used to make employment decisions about a

member of a protected class (i.e. Based on age, race, religion, gender or national origin)

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must be a valid system (an accurate measure of performance associated with job
requirements). Otherwise, it can be challenged in the courts based on Title VII of the1964
Civil Rights Act, the Civil Rights Act of 1991 and the Age Discrimination in Employment
Act of 1975(London, 2003).

Effectiveness of performance Appraisal system it is argued is a function of

applying the right system in right context. - By Klein; the Art o Appraisal

Performance appraisal system are “home work” that provides the information you
need in order to make appropriate administrative recommendations, hold meaningful
feedback discussions with staff members, and determined were performance improvement
is required - By Marion E. Haynes; Managing Performance

The effectiveness of an Appraisal System is determined by the quality of

communication between the manager and staff member, not by multiple raters, complex
scoring methods, or the form used. -By John D. Drake; Performance Appraisal: One
More Time

Performance appraisal can actually be counter-productive for employees who are in

the greatest need of training and further development -By Victor Buzzottan; Improving
your Performance Appraisal

One of the measure reason Performance management and Performance Appraisal

fail is that too much time is spent on Appraising performance using vague criteria, and not
enough time and effort put into helping employee understand what his job is about, and the
goals and objectives he/she is expected to achieve to be successful. Learn to do goals
setting painlessly. -By Robert Bacal; Learn to plan Performance and set employee
goals

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 Maximizing and measuring our own performance and that of the people who work
for us is a basic tenant of the work environment. Always use of simple tool and approach
that can be beneficial in achievement performance plan. -By Zack Mansdorf;
Performance Management; Identifying work goals

Most managers and supervisors today are attempting to quantify their departmental
objective and pass them on their employees through performance standards. Despite the
simplicity of this management- by –objective approach, deadlines are missed, quality is
relatively poor and productive is low. The reasons for this may not be the fault of the
employees carrying out the work. The cause is most often associated with the immediate
supervisor’s lack of attention to the realities surrounding objectives and performance
standards require a careful analysis of all the relevant issues. -By Gregory Isaac; Plan for
performance

Organizations striving to develop an open and participative approach have begun to

give employees the chance to say what they think of their managers. Such appraisals can
only work in a culture where mangers are willing to listen and learn and effect any
necessary changes as a result. - By Madhukar Shukla; Upward Appraisal and
Organizational culture

At one stage performance appraisal relied mainly on personality characteristics.

Sub ordinates were being appraised by their superior on the extent to which they exhibited
characteristic like, tact, willingness, enthusiasm, and maturity. Mangers were being put
into position of psychologists and required to make subjective ratings without any point of
reference expect their own opinion -By Bob Nelson; Performance Assessment

Performance appraisal is a part is a part of overall performance management system

of an organization. Through the appraisal process, gap between an individual’s agreed
performance standard his actual performance is assessed and appropriate strategies are
drawn for subsequent performance cycle. This is a useful performance enhancement
exercise. In many Organizations, PMS is linked with other systems like salary & Benefits,

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Training &Development and Succession Planning. -By H.K.Shukla; Straties Human
Resource Management

Bi-directional performance recognizes that for performance to improve, both

manager and employee must receive feedback on how well they are fulfilling their
obligations to their organizations and to each other. -By Robert bacal; when Boss
evaluates you

3. RESEARCH METHODOLOGY

RESEARCH

Research in common parlance refers to a search for knowledge “Redman

and Mory define Research as a “systematized effort to gain new knowledge. Research is an
academic activity and as such the term should be used in a technical sense. According to
Clifford woody, Research comprises defining and redefining problem, formulating
hypothesis or suggested solutions; collecting, organising and evaluating data; making
deductions and research conclusion; and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis.

Research is thus an original contribution to the existing stock of knowledge making

for its advancement. It is pursuit of truths with the help of study, observation comparison
and experiment in short the search for knowledge through objective and systematic method
of finding solution to a problem is research.

3.1 RESEARCH DESIGN:

A Research design is the arrangement of conditions for collection and analysis of

data in a manner that aims to combine relevance to the Research purpose with economy in

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procedure. In fact the Research design is the conceptual structure within which Research is
conducted: it constitutes the blueprint for the collection measurement and analysis of data.

It must be able to define clearly what he wants to measure and must find adequate
methods for measuring it along with a clearly cut definition of population he wants to
study. Since the aim is to obtain complete and accurate information in the said studies, the
procedure to be used must be carefully planned. The research design must make enough
provision for protection against bias and must maximise reliability with due concern for
the economical completion of the research study.

Descriptive research is adopted for this study. It includes surveys and fact
finding enquires of different kinds. The major purpose of descriptive research is
description of the state of affairs as it exists at present. The main characteristic of this
method is that the researcher has no control over the variables. He can only report what has
happened or what is happened.

3.2 SAMPLING DESIGN

A sample design is a definite plan for obtaining a sample from the sampling
frame, it refers to the technique or procedure the researcher would adopt in selecting some
sampling units from which inferences about the population is drawn.

3.2.1 POPULATION AND SAMPLE SIZE

A decision has to be taken concerning a sampling unit before selecting sample. The
population for this study includes the employees from three branches of Abinaya Autos.
The total population of Abinaya Autos are 100. All 100 employees were undertaken for the
study. In this study the population and sample are equal.

3.3 DATA COLLECTION

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 The task of data collection begins after a research problem has been defined and
research design / plan chalked out. While deciding about the method of data collection to
be used for the study, the researcher should keep in mind two types of data viz,

• Primary and
• Secondary

PRIMARY DATA

The primary data are those which are collected afresh and for the first time and thus
happen to be original in character. The tool used for collecting primary data is a structured
questionnaire.

SECONDARY DATA

The secondary data on the other hand are those which have already been collected
by someone else and which have already been passed through the statistical process. The
secondary data has been collected from the company records, journals. The secondary data
collected for this research was obtained from journals, magazines, company reports and
websites

3.4 STATISTICAL TOOLS

 Chi – square test

 Percentage analysis
 Weighted average ranking method

3.4.1 CHI –SQUARE TEST

The Chi-square test is an important test amongst the several tests of significance
developed by statisticians. Chi-square is a statistical measure used in the context of
sampling analysis for comparing a variance to a theoretical variance. As a non-parametric
test, it can be used to determine if categorical data shows dependency or the two

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classifications are independent. The test is, in fact, a technique through the use of which it
is possible for all researchers to
(i) Test the goodness of fit
(ii) Test the significance of association between two attributes and
(iii) Test the homogeneity or the significance of population variance.

As a test of independence, χ 2
test enables us to explain whether or not two
attributes are associated. In such a situation, we proceed with the null hypothesis that the
two attributes are independent. If the calculated value is less than the tabulated value at
certain degrees of freedom, the null hypothesis is accepted and vice versa.
χ 2 is calculated as follows:

χ 2= ∑ (O-E) 2
E

2
Whereχ = Chi – square
Oi = Observed Frequency
Ei = Expected Frequency
χ 2
is always positive and it ranges from 0 to 00
The expected value for the contingency tabulated as follows.
E = (Row total * Column total
Grand total
The χ 2
test depends on the set of observed and expected values and on the degrees of
freedom.
The χ 2
distribution is the limiting approximation designation

3.4.2 PERCENTAGE ANALYSIS

It refers to a special kind of ratio. Percentage is used in making comparison

between two or more series of data; percentages are used to determine relationship

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between the series if data finding the relative differences becomes easier through
percentage.

It is expressed as,

Percentage (%) = No. of respondents x 100

Total no. of respondents

3.4.3 WEIGHTED AVERAGE RANKING METHOD

Weighted average can be defined as an average whose component items are

multiplied by certain values (weights) and the aggregate of the products are divided by the
total of weights. One of the limitations of simple arithmetic mean is that it gives equal
importance to all the items of the distribution. In certain cases relative importance of all
the items in the distribution is not the same. Where the importance of the items varies it is
essential to allocate weight applied but may vary in different cases. Thus weighted is a
number standing for the relative importance of the items.

Weighted Average method is used to sum up the views of the various respondents
to obtain mean score for the particular statement.

Mean score = Total score / Number of respondent

Where,

Total score = Number of respondent x Weighted average

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 3.5 DATA ANALYSIS AND INTERPRETATION

3.5.1 GENDER WISE CLASSIFICATION OF RESPONDENTS

TABLE 3.5.1GENDER WISE CLASSIFICATION OF RESPONDENTS

Gender No. of respondents Percentage (%)
Male 89 89
Female 11 11
Total 100 100
Source: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 89% of the respondents are male and
11% of the respondents are female.

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FIGURE 3.5.1 GENDER WISE CLASSIFICATION OF RESPONDENTS

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3.5.2 AGE WISE CLASSIFICATION OF RESPONDENTS

TABLE 3.5.2 AGE WISE CLASSIFICATION OF RESPONDENTS

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 Age No. Of Respondents Percentage (%)
20 – 25 Age 25 25
30– 35 Age 33 33
40 – 45 Age 30 30
Above – 45 Age 12 12
Total 100 100
Source : Primary Data

INTERPRETATION:

From the above table, it can be inferred that 33% of the respondents are in the age
between 30 – 35, 30% of the respondents are in the age between 40 – 45, 25% of the
respondents are in the age between 20 – 25 and 12% of the respondents are in the age
above 45.

FIGURE 3.5.2 AGE WISE CLASSIFICATION OF RESPONDENTS

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3.5.3 EXPERIENCE WISE CLASSIFICATION OF RESPONDENTS

TABLE 3.5.3 EXPERIENCE WISE CLASSIFICATION OF RESPONDENTS

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 Experience No. Of Respondents Percentage (%)
Below 5 Years 28 28
5-10Years 54 54
10 – 15 Years 18 18
Above 15Years - -
Total 100 100%
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 54% of the respondents are having 5-
10 years experience persons, 28% of the respondents have below 5 years of experience
persons, 18% of the respondents are having10 – 15 years of experience and no respondents
have experience more than 15 years.

FIGURE 3.5.3 EXPERIENCE WISE CLASSIFICATION OF

RESPONDENTS

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3.5.4 EDUCATIONAL QUALIFICATION OF RESPONDENTS

TABLE 3.5.4 EDUCATIONAL QUALIFICATION OF RESPONDENTS

Educational Qualification No. Of Respondents Percentage (%)
UG Degree 49 49
PG Degree 19 19

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Engineering 4 4
Others(iti) 28 28
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 49% of the respondents are UG degree
holders, 28% of the respondents are some others (iti), 19% of respondents are PG degree
holders and 4% of the respondents are engineering graduates.

FIGURE 3.5.4 EDUCATIONAL QUALIFICATION OF RESPONDENTS

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3.5.5 FREQUENCY OF PERFORMANCE APPRAISAL

TABLE 3.5.5 FREQUENCY OF PERFORMANCE APPRAISAL

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 Performance appraisal times No. Of Respondents Percentage (%)
Once year 100 100
Twice a year - -
No specific time _ -
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 100% of the respondents agree that
performance appraisal is conducting once a year.

3.5.6 REASON FOR CONDUTING PERFORMANCE APPRISAL

TABLE 3.5.6 REASON FOR CONDUTING PERFORMANCE APPRISAL

Performance appraisal
No. Of Respondents Percentage (%)
conducting

32
 To identify motivating methods - -

To decide monetary benefits - -

Identifying barriers of - -
performance
All of the above 100 100
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 100% of the respondent’s agree that
the reason for conducting performance appraisal includes all the factors such as to identify
motivating methods, to decide monetary benefits and identify barriers for performance.

3.5.7 DURATION OF PERFORMANCE APPRAISAL CONDUCTED

TABLE 3.5.7 DURATION OF PERFORMANCE APPRAISAL CONDUCTED

When Performance
No. Of Respondents Percentage (%)
appraisal conducted
During working hours 87 87

33
 During non-working hours 13 13
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that for 87% of the respondents’
performance appraisal is conducted during working hours and for 13% respondents’
performance appraisal is conducted during non-working hours.

FIGURE 3.5.5DUR ATION PERFORMANCE APPRAISAL CONDUCTED

34
3.5.8 WHO CONDUCTS PERFORMANCE APPRAISAL

TABLE 3.5.8 WHO CONDUCTS PERFORMANCE APPRAISAL

35
 Who Performance appraisal
No. Of Respondents Percentage (%)
conducts
Superior - -
Peers - -
Everyone - -
Outsider 100 100
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that for 100% of the respondents’
performance appraisal is conducted by outsider.

3.5.9 REASON FOR PERFORMANCE APPRAISAL DISCUSSED

TABLE 3.5.9 REASON FOR PERFORMANCE APPRAISAL DISCUSSED

Informed reason for No. Of Respondents Percentage (%)

36
 Performance appraisal
conducting
Always 20 20
Sometimes 77 77
Never 3 3
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 77% of respondents feel that
the reason for performance appraisal is discussed sometimes, 20% of the respondent’s feel
it is discussed always and 3% of respondents say reason is never discussed.

FIGURE 3.5.6 REASON FOR PERFORMANCE APPRAISAL

DISCUSSED

37
3.5.10 EMPLOYEE PERFORMANCE DISCUSSED

TABLE 3.5.10 EMPLOYEE PERFORMANCE DISCUSSED

38
Meetings of
No. Of Respondents Percentage (%)
employee performance
Nil - -
Once 100 100
Twice - -
Thrice - -
Total 100 100%
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that for 100% of the respondents
meeting on performance is conducting once a year.

3.5.11. PERFORMANCE APPRAISAL PROGRAMS RELATED WITH

ORGANIZATIONAL GOALS

39
 TABLE 3.5.11 PERFORMANCE APPRAISAL PROGRAMS RELATED WITH
ORGANIZATIONAL GOALS
Goals No. Of Respondents Percentage (%)
To a high extent 12 12
To some extent 69 69
To a low extent 19 19
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 69% of the respondents feel the
performance appraisal relates to some extent to organization goals, 19% feel to a low
extent and 12% feel to a high extent it relates.

FIGURE 3.5.7 PERFORMANCE APPRAISAL PROGRAMS RELATE

TO ORGANIZATIONAL GOALS

40
3.5.12 INVOLVEMENT IN DESIGNING APPRAISAL SYSTEM

TABLE 3.5.12 INVOLVEMENT IN DESIGNING APPRAISAL SYSTEM

Opinion No. Of Respondents Percentage (%)
Always - -

41
Sometimes - -
Never 100 100
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 100% of the respondents say they are
never involved in designing the appraisal system.

3.5.13 PERFORMANCE APPRAISAL RELEVANCE TO EMPLOYEE JOB

TABLE 3.5.13. PERFORMANCE APPRAISAL RELEVANCE TO EMPLOYEE JOB

No. Of
S. No Relevance Percentage (%)
Respondents
1 Highly relevant 87 87
2 relevant 13 13
3 no idea - -

42
 4 Irrelevant - -
5 highly irrelevant - -
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 87% of the respondents feel that
performance appraisal is highly relevant to employee job and 13% feel it is relevant.

FIGURE 3.5.8 PERFORMANCE APPRAISAL RELEVANCE TO

EMPLOYEE JOB

43
3.5.14 OPINION AND SUGGESTIONS SHARED TO MANAGERS

TABLE 3.5.14 OPINION AND SUGGESTIONS SHARED TO MANAGERS

Opinion and suggestions No. Of Respondents Percentage (%)

44
Mostly 100 100
Rarely - -
Never - -
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 100% of the respondents mostly share
their opinion and suggestions to their managers.

3.5. 15 TRAINING OF FILL UP PERFORMANCE APPRAISAL FORM

TABLE 3.5.15 TRAINING OF FILL UP PERFORMANCE APPRAISAL FORM

Forms No. Of Respondents Percentage (%)

45
Yes 100 100
No - -
Total 100 100%
Sources: Primary Data

INTERPRETATION:
From the above table, it can be inferred that 100% of the respondents are given
training to fill the appraisal form.

3.5.16 APPRAISER’S AWARENESS ON EMPLOYEE JOB

RESPONSIBILITIES AND DUTIES

46
TABLE 3.5.16 APPRAISER’S AWARENESS ON EMPLOYEE
JOBRESPONSIBILITIES AND DUTIES
Aware No. Of Respondents Percentage (%)
Completely aware - -
Aware to an extent - -
Not aware 100 100
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 100% of the respondents feel that the
appraiser is not aware of their job responsibilities and duties.

3.5.17 FEEDBACK PROVIDED FOR PERFORMANCE

IMPROVEMENT

TABLE 3.5.17 FEEDBACK PROVIDED FOR PERFORMANCE IMPROVEMENT

Feedback No. Of Respondents Percentage (%)

47
Frequently 11 11
Occasionally 89 89
Never - -
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 89% of the respondents feel that
feedback is provided occasionally whereas 11% feel that feedback is provided frequently.

FIGURE 3.5.9 FEEDBACK PROVIDED FOR PERFORMANCE

IMPROVEMENT

48
3.5.18 INVOLVEMENT OF RATER

TABLE 3.5.18 INVOLVEMENT OF RATER

Involvement No. Of Respondents Percentage (%)
Highly involved 34 34
Less involved 44 44

49
Not involved 26 26
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 44% of the respondents feel the rater is
less involved, 34% of the respondents feel they are highly involved and 26% of the
respondents they are not involved.

FIGURE 3.5.10 INVOLVEMENT OF RATER

50
3.5.19 IMPORTANCE OF PERFORMANCE APPRAISAL

TABLE 3.5.19 IMPORTANCE OF PERFORMANCE APPRAISAL

51
Importance No. Of Respondents Percentage (%)
Highly important 90 90
Less important 10 10
Not important - -
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 90% of the respondents feel
performance appraisal is highly important and 10% of the respondents feel it is less
important.

FIGURE 3.5.11 IMPORTANCE OF PERFORMANCE APPRAISAL

52
3.5.20 PROPER EXECUTION OF PERFORMANCE APPRAISAL

TABLE 3.5.20 PROPER EXECUTION OF PERFORMANCE APPRAISAL

53
 properly executed in your
No. Of Respondents Percentage (%)
organization
Yes 78 78
No 22 22
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 78% of the respondents feel
performance appraisal is properly executed while 22% feel it is not properly executed.

FIGURE 3.5.12 PROPER EXECUTION OF PERFORMANCE APPRAISAL

54
3.5.21 SUPPORT OF TOP MANAGEMENT IN PERFORMANCE
APPRAISAL

55
 TABLE 3.5.21 SUPPORT OF TOP MANAGEMENT IN PERFORMANCE APPRAISAL
Support No. of Respondents Percentage (%)
Highly supportive 64 64
Less supportive 36 36
Not supportive - -
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 64% of the respondents feel top
management is highly supportive and 36% feel they are less supportive.

FIGURE 3.5.13 SUPPORT OF TOP MANAGEMENT IN

PERFORMANCE APPRAISAL

56
3.5.22 UPDATING OF PERFORMANCE APPRAISAL

57
 TABLE 3.5.22 UPDATING OF PERFORMANCE APPRAISAL
Reviewed and updated No. Of Respondents Percentage (%)
Frequently 46 46
Occasionally 54 54
Never - -
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 54% of the respondents feel the
performance appraisal is reviewed occasionally while 46% of respondents feel they are
reviewed frequently.

FIGURE 3.5.14 UPDATION OF PERFORMANCE APPRAISAL

58
3.5.23 POTENTIAL IDENTIFIED BY PERFORMANCE APPRAISAL

59
TABLE 3.5.23 POTENTIAL IDENTIFIED BY PERFORMANCE APPRAISAL
Effectiveness No. Of Respondents Percentage (%)
Effectively 36 36
Less effectively 54 54
Neutral 10 10
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 54% of the respondents feel that
potential is identified less effectively, 36% feel effectively, and 10% feel neutral.

FIGURE 3.5.15 POTENTIAL IDENTIFIED BY PERFORMANCE

APPRAISAL

60
3.5.24 SATISFACTION OF PERFORMANCE APPRAISAL PROGRAM

TABLE 3.5.24 SATISFACTION OF PERFORMANCE APPRAISAL PROGRAM

61
Satisfaction No. Of Respondents Percentage (%)
Unsatisfactory 17 17
Needs Improvement 51 51
Meets Expectations 12 12
Outstanding 20 20
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 51% of the respondents feel the
performance appraisal Needs Improvement, 20%of the respondents feel it is Outstanding,
17% of the respondents feel it is Unsatisfactory and 12% of the respondents say it Meets
Expectations.

FIGURE 3.5.16 SATISFACTION OF PERFORMANCE APPRAISAL

PROGRAM

62
3.5.25 PERFORMANCE APPRAISAL ENCOURAGES TO REACH
GOAL

63
 TABLE 3.5.25 PERFORMANCE APPRAISAL ENCOURAGES TO REACH
GOAL
Reaching your goals No. Of Respondents Percentage (%)
Strongly agree 57 57
Agree 21 21
Neutral 10 10
Disagree 12 12
Strongly disagree - -
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 57% of the respondents agree that
performance appraisal encourages to reach goals, 21% agree, 12% disagree and 10% feel
neutral.

FIGURE 3.5.17 PERFORMANCE APPRAISAL ENCOURAGES TO

REACHING GOAL

64
3.5.26 APPRAISAL FEED BACK

TABLE 3.5.26 APPRAISAL FEED BACK

appraisal feed back No. Of Respondents Percentage (%)
Frequently 33 33

65
 Occasionally 57 57
Rarely 10 10
Never - -
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 57%of the respondents feel they
are given feedback occasionally, 33% feel frequently and 10% feel rarely.

FIGURE 3.5.18 APPRAISAL FEED BACK

66
3.5.27 POSITIVE & NEGATIVE POINTS DISCUSSED

67
 TABLE 3.5.27 POSITIVE & NEGATIVE POINTS DISCUSSED
Positive & negative points No. Of Respondents Percentage (%)
Yes 100 100
No - -
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 100% of the respondents feel that both
positive and negative points are discussed.

3.6.28 ATTITUDE WHEN NEGATIVE POINTS ARE DISCUSSED

TABLE 3.6.28 ATTITUDE WHEN NEGATIVE POINTS ARE DISCUSSED

Negative points discussed No. Of Respondents Percentage (%)

68
Discouraged 46 46
determined to perform better 27 27
Ready to learn 10 10
Do not want to contribute 17 17
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 46% of the respondents feel
discouraged, 27% of the respondents feel determined to perform better, 17% of the
respondents feel they do not want to contribute and 10% of the respondents feel they are
ready to learn.

FIGURE 3.5.19 ATTITUDE WHEN NEGATIVE POINTS ARE

DISCUSSED

69
3.5.29 RATING APPRAISAL PROGRAM

TABLE 3.5.29 RATING APPRAISAL PROGRAM

70
 Rate appraisal program No. Of Respondents Percentage (%)
Reliable 10 10
Effective 25 25
Accurate 25 25
Motivating 35 35
Unbiased 5 5
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 35% of the respondents feel the
performance appraisal programme is motivating, 25% of respondents feel it is effective,
25% of the respondents feel it is accurate, 10% of the respondents are feel it is reliable and
5% of the respondents feel it is unbiased.

FIGURE 3.5.20 RATING APPRAISAL PROGRAM

71
72
3.5.30 COMFORTABILITY IN DISCUSSING PROBLEMS

TABLE 3.5.30 COMFORTABILITY IN DISCUSSING PROBLEMS

Comfortability No. Of Respondents Percentage (%)
Highly Comfortable 75 75
Comfortable 25 25
Neutral - -
Uncomfortable - -
Highly uncomfortable - -
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 75% of the respondents feel they are
Highly Comfortable, and 25% of respondents feel they are Comfortable in discussing their
problems with their superior.

73
FIGURE 3.5. 21 COMFORTABILITY IN DISCUSSING PROBLEMS

74
3.6.31 RATING EMPLOYEE PERFORMANCE

TABLE 3.6.31 RATING EMPLOYEE PERFORMANCE

Performance rated No. Of Respondents Percentage (%)
Based on abilities and skills 10 10
Based on management reference 25 25
Based on superiority 25 25
Based on contribution 40 40
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 40% of the respondents feel rating is
based on contribution, 25% of respondents feel rating is based on management reference.
25% of the respondents feel rating is based on superiority and 10% of the respondents feel
it is based on abilities and skills.

75
FIGURE 3.5.22 RATING EMPLOYEE PERFORMANCE

76
3.5.32 CHANGES TAKEN AFTER PERFORMANCE APPRAISAL

TABLE 3.5.32 CHANGES TAKEN AFTER PERFORMANCE APPRAISAL

Result of Performance Appraisal No. Of Respondents Percentage (%)
Change in motivating strategy 33 33
Re-structuring of organisation or 25 25
individual objectives
Improvement in management-employee 25 25
relationship
Making changes in dissatisfied areas 17 17
No decision taken - -
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 33 % of the respondents feel there is
change in motivating strategy, 25% of the respondents feel re-structuring of organisation or
individual objectives, 25% of respondents feel there is improvement in management-
employee relationship and 17% of the respondents feel on making changes in dissatisfied
areas.

77
FIGURE 3.5.23 CHANGES TAKEN AFTER PERFORMANCE
APPRAISAL

78
 3.6.33 PERFORMANCE APPRAISAL SYSTEM IMPROVING OVER
ALL PERFORMANCE

TABLE 3.6.33 PERFORMANCE APPRAISAL SYSTEM IMPROVING OVER ALL

PERFORMANCE
Effectiveness No. Of Respondents Percentage (%)
Highly effective 34 34
Effective 16 16
Moderate 15 15
In Effective 25 25
Highly ineffective 10 10
Total 100 100
Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 34% of the respondents feel
performance appraisal improve overall performance highly effectively, 25% of the
respondents feel it is ineffective, 16% of respondents feel it is effective, 15% of the
respondents feel it is moderate and 10% of the respondents are feel it is highly ineffective.

FIGURE 3.6.33 PERFORMANCE APPRAISAL SYSTEM

IMPROVING OVER ALL PERFORMANCE

79
 3.6 STATISTICAL ANALYSIS

3.6.1 CHI-SQUARE TEST

80
 Table 3.6.1.1 Cross tabulation between the changes taken for performance
appraisal and improvement of performance appraisal

Improvement

in overall PA
Highly
Highly In
Changes Effective Moderate ineffective Total
Taken effective Effective

Change in
motivating
strategy 7 5 9 12 0 33

Re-structuring of
organi
sation
or
indivi
dual
objecti
ves 12 2 6 3 2 25
Improvement in
management-
employee
relationship 11 8 0 6 0 25
Making changes
in dissatisfied
areas 4 1 0 4 8 17
No decision taken

0 0 0 0 0 0

Total 34 16 15 25 10 100

STEP: 1

81
 SETTING AN HYPOTHESIS

H0: There is no significant relationship between the changes taken for

performance appraisal and improvement of performance appraisal.

H1: There is significant relationship between the changes taken for

performance appraisal and improvement of performance appraisal.

STEP: 2
TO FIND THE EXPECTED FREQUENCY

Expected frequency = Corresponding row total * Corresponding column total

Total number of samples

STEP: 3
CALCULATION OF CHI-SQUARE VALUE
Formula

(O-E) 2
χ 2=
E

O = Observed frequency

E = Expected frequency

χ 2 = Chi square

3.6.1.2 Computation Table for χ 2

O E O-E (O-E)2 (O-E)2/E

7 11.22 -4.22 17.81 1.59
5 5.28 -0.28 0.08 0.01

82
 9 4.95 4.05 16.40 3.31
12 8.25 3.75 14.06 1.70
0 3.30 -3.30 10.89 3.30
12 8.50 3.50 12.25 1.44
2 4.00 -2.00 4.00 1.00
6 3.75 2.25 5.06 1.35
3 6.25 -3.25 10.56 1.69
2 2.50 -0.50 0.25 0.10
11 8.50 2.50 6.25 0.74
8 4.00 4.00 16.00 4.00
0 3.75 -3.75 14.06 3.75
6 6.25 -0.25 0.06 0.01
0 2.50 -2.50 6.25 2.50
4 5.78 -1.78 3.17 0.55
1 2.72 -1.72 2.96 1.09
0 2.55 -2.55 6.50 2.55
4 4.25 -0.25 0.06 0.01
8 1.70 6.30 39.69 23.35
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
54.04
TOTAL

STEP: 4

Level of significance α = 0.05

83
 Degrees of freedom = (R-1) (C-1)
= (4-1) (5-1) = 12
Tabulated value at 5% level of significance and degree of freedom 12 is 21.026

STEP: 5

The calculated value is greater than the tabulated value: 54.04 > 26.296

RESULT

Therefore, reject the Null Hypothesis H0 and accept the alternate Hypothesis H1

INFERENCE
There is significant relationship between the changes taken for performance
appraisal and improvement of performance appraisal.

3.6.1.3 Cross tabulation between the proper execution of performance

appraisal and rating employee performance

84
 Proper
Execution
Yes No Total
Rating
Performance

Based on abilities and skills

8 2 10

Based on management reference 19 6 25

Based on superiority
21 4 25
Based on contribution
30 10 40

Total 78 22 100

STEP: 1
SETTING AN HYPOTHESIS

H0: There is no significant relationship between the proper execution of

performance appraisal and rating employee performance.

85
 H1: There is significant relationship between the proper execution of
performance appraisal and rating employee performance.

STEP: 2
TO FIND THE EXPECTED FREQUENCY

Expected frequency = Corresponding row total * Corresponding column total

Total number of samples

STEP: 3
CALCULATION OF CHI-SQUARE VALUE
Formula

(O-E) 2
χ 2=
E

O = Observed frequency

E = Expected frequency

χ 2 = Chi square

3.6.1.4 Computation Table for χ 2

O E O-E (O-E)2 (O-E)2/E

8 7.80 0.20 0.04 0.01
2 2.20 -0.20 0.04 0.02
19 19.50 -0.50 0.25 0.01

86
 6 5.50 0.50 0.25 0.05
21 19.50 1.50 2.25 0.12
4 5.50 -1.50 2.25 0.41
30 31.20 -1.20 1.44 0.05
10 8.80 1.20 1.44 0.16

TOTAL 0.82

STEP: 4
Level of significance α = 0.05
Degrees of freedom = (R-1) (C-1)
= (4-1) (2-1) = 3

Tabulated value at 5% level of significance and degree of freedom 3 is 7.82

STEP: 5

The calculated value is lesser than the tabulated value: 0.82 < 7.82

RESULT

Therefore, accept the Null Hypothesis Ho and reject the alternate Hypothesis H1

INFERENCE

There is no significant relationship between the proper execution of performance

appraisal and rating employee performance.

Table 3.6.1.5 Cross tabulation between the Rate appraisal program and
performance appraisal developed in relevance to employee job

87
 Improvement

in overall PA

Reliable Effective Accurate Motivating Unbiased Total

Relevance
To employee
Job

Highly Relevant
8 22 20 34 3 87

Relevant
2 3 5 1 2 13

No Idea
0 0 0 0 0 0

Irrelevant
0 0 0 0 0 0

Highly Irrelevant
0 0 0 0 0 0

Total 10 25 25 35 5 100

STEP: 1
SETTING AN HYPOTHESIS

88
 H0: There is no significant relationship between the Rate appraisal program
and performance appraisal developed in relevance to employee job.

H1: There is significant relationship between the Rate appraisal program

and performance appraisal developed in relevance to employee job.

STEP: 2
TO FIND THE EXPECTED FREQUENCY

Expected frequency = Corresponding row total * Corresponding column total

Total number of samples

STEP: 3
CALCULATION OF CHI-SQUARE VALUE
Formula

(O-E) 2
χ 2=
E

O = Observed frequency

E = Expected frequency

χ 2 = Chi square

3.6.1.6 Computation Table for χ 2

O E O-E (O-E)2 (O-E)2/E

8 8.70 -0.70 0.49 0.06
22 21.75 0.25 0.06 0.00

89
 20 21.75 -1.75 3.06 0.14
34 30.45 3.55 12.60 0.41
3 4.35 -1.35 1.82 0.42
2 1.30 0.70 0.49 0.38
3 3.25 -0.25 0.06 0.02
5 3.25 1.75 3.06 0.94
1 4.55 -3.55 12.60 2.77
2 0.65 1.35 1.82 2.80
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
7.94
TOTAL

STEP: 4
Level of significance α = 0.05
Degrees of freedom = (R-1) (C-1)
= (5-1) (5-1) = 3

90
 Tabulated value at 5% level of significance and degree of freedom 16 is 26.29
STEP: 5

The calculated value is lesser than the tabulated value: 7.94 < 26.296

RESULT

Therefore, accept the Null Hypothesis Ho and reject the alternate Hypothesis H1

INFERENCE

There is no significant relationship between the Rate appraisal program and

performance appraisal developed in relevance to employee job.

Table 3.6.1.7 Cross tabulation between the feel that performance appraisal
encourages and obtain appraisal feedback.

91
 Obtain

appraisal
feedback
Frequently occasionally Rarely Never Total

Feel PA
Encourages

Strongly
agree 17 37 3 0 57

Agree 7 11 3 0 21

Neutral 4 4 2 0 10
Disagree
5 5 2 0 12

Strongly
disagree 0 0 0 0 0

Total 33 57 10 0 100

STEP: 1
SETTING AN HYPOTHESIS

92
 H0: There is no significant relationship between the feel that performance
appraisal encourages and obtains appraisal feedback.

H1: There is significant relationship between feel that performance

appraisal encourages and obtain appraisal feedback.

STEP: 2
TO FIND THE EXPECTED FREQUENCY

Expected frequency = Corresponding row total * Corresponding column total

Total number of samples

STEP: 3
CALCULATION OF CHI-SQUARE VALUE
Formula

(O-E) 2
χ 2=
E

O = Observed frequency

E = Expected frequency

χ 2 = Chi square

3.6.1.8 Computation Table for χ 2

O E O-E (O-E)2 (O-E)2/E

17 18.81 -1.81 3.28 0.17
37 32.49 4.51 20.34 0.63
3 5.70 -2.70 7.29 1.28

93
 0 0.00 0.00 0.00 0.00
7 6.93 0.07 0.00 0.00
11 11.97 -0.97 0.94 0.08
3 2.10 0.90 0.81 0.39
0 0.00 0.00 0.00 0.00
4 3.30 0.70 0.49 0.15
4 5.70 -1.70 2.89 0.51
2 1.00 1.00 1.00 1.00
0 0.00 0.00 0.00 0.00
5 3.96 1.04 1.08 0.27
5 6.84 -1.84 3.39 0.49
2 1.20 0.80 0.64 0.53
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00
5.50
TOTAL

STEP: 4
Level of significance α = 0.05
Degrees of freedom = (R-1) (C-1)
= (5-1) (4-1) = 12

Tabulated value at 5% level of significance and degree of freedom 12 is 21.026

STEP: 5

94
The calculated value is lesser than the tabulated value: 5.50 < 21.026

RESULT

Therefore, accept the Null Hypothesis Ho and reject the alternate Hypothesis H1

INFERENCE

There is no significant relationship between the feel that performance appraisal encourages
and obtains appraisal feedback.

4.1 FINDINGS

 Majority (89%) of respondents are male.

 Most of the respondents (33%) belong to the age group of 30 to35.

 54% of the respondents have above 5 to 10 years of work experience.

95
 Majority (49%) of the respondents are under graduates.

 All of the respondents have undergone performance appraisal program once in a

year.

 100% of the employees interpret the reason for conducting performance appraisal
includes all the factors such as to identify motivating methods, to decide monetary
benefits and identify barriers for performance.

 For 87% of the respondents performance appraisal was conducted during working
hours.

 For 100% of the respondents the performance appraisal is conducted by outsider.

 Most (77%) of the respondents feel that the reason for performance appraisal is
discussed sometimes.

 Once in a year the meeting is scheduled for all employees to discuss their
performance.

 69% of the respondents feel that performance appraisal is related to organizational

goals to some extent.

 All of the respondents infer that they are never involved in designing the
performance appraisal system.

 87% of the respondents feel that the performance appraisal system is developed
highly relevant to the employees’ job.
 All respondents mostly share their opinion and suggestions freely during the
performance appraisal.
 All respondents have got the training to fill up the performance appraisal forms.

 All of the respondents feel that the appraiser is not aware of the jobs and duties of
the each and every employee.

 89% respondents feel the superior will provide informal feedbacks for
performance improvement occasionally.

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 Most (44%) of the respondents feel that the raters are less involved while
appraising employees.

 Majority (90%) of the respondents feel that performance appraisal is important to

the organization.
 Most (78%) of the respondents says the Performance Appraisal is properly
executed in the organization.
 64% of the respondents feel that the top management is highly supportive towards
the performance appraisal system.

 Majority (54%) of the respondents feel that performance appraisal system is

reviewed and updated occasionally.
 54% of the respondents agree that performance appraisal helps to identify
employees’ potential for advancement less effectively.

 Most (51%) of the respondents suggest that performance appraisal system needs
improvement

 57% of the respondents strongly agree that performance appraisal system

encourages to put more effort in reaching goals.

 57% of respondents feel the feedback about the performance appraisal system is
obtained occasionally.

 All of the respondents feel both positive & negative points discussed to the
employees.

 46% of the respondents are discouraged when negative points are discussed.

 Majority of the respondents 35% feel the rating appraisal system is motivating.

 75 % of the respondents feel they are highly comfortable in discussing problems

with their superior.

 Most (40%) of the respondents feel that performance is rated based on contribution
criteria.

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 33 % of the respondents feel change in motivating strategy is done after conducting
performance appraisal.

 Majority of the respondents 34% feel the performance appraisal system is highly
effective in improving overall performance.

4.2 SUGGESTIONS

 Performance appraisal could be conducted by an person inside the organisation and

one who is familiar with the employees.
 Objective of conducting the performance appraisal could be discussed and doubts
can be clarified.
 Performance appraisal could be updated regularly to match individual and
organisational goals.
 Suggestion could be obtained from employees regarding framing the performance
appraisal system.
 Since the performance appraisal is conducted by the outsider, employees’
suggestion during performance appraisal may not reach the top managers. For such
situations suggestion box can be implemented and frequently reviewed.
 The appraiser must be familiarized with the employee’s job responsibilities and
duties before conducting performance appraisal.
 Feedback on performance could be discussed through formal or informal meetings.
This may enhance the involvement and performance of employees.
 Appropriate and experienced appraiser can be appointed for effective performance
appraisal results.
 Performance appraisal can developed in such a way to identify the hidden talent
and skills of employees.
 Employees having low performance could be called individually, encouraged and
monitored closely to make improvements.

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  Appraisal feedback is very important in any performance appraisal program. It
could be carefully communicated by making high performers’ increase their target
and low performers to build up their confidence.

4.3 CONCLUSION

Performance 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, judgement, versatility, health and the like. It is also help the
developing the strengths & weakness of the employees

Abinaya Auto’s have been conducting performance appraisal for the past four
years. From the study it has been indentified that the performance appraisal is able to
identify employees’ potential and find the motivating factors of employees. The major
drawback is in terms of the appraiser and his knowledge regarding employees job
responsibilities and duties.

Abinaya Auto’s has been running successfully for past 9 years and has created a
good name among its customers and society. People having poor background are given
training and provided with jobs. Performance appraisal can be conducted more effectively
by using the right tools and properly reviewing and updating the performance appraisal
program.

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 Suggestion form employees and experienced personnel can further enhance and
make the performance appraisal an ideal evaluation system.

APPENDIX

Gender : ( ) Male Female ( )

Age group : ( ) 20 – 30
( ) 31 – 40
( ) 41 – 50
( ) 51 – 60
Experience : ( ) Less than 3 years
( ) 4-8 Years
( ) 9 – 15 Years
( ) More than 15 Years
Qualification : ________________

1. How many times dose performance appraisal takes place in your organization?

a) Once a year b) Twice a year c) No specific time

2. What is the reason for conducting performance appraisal in your organization?

a) To identify motivating methods b) To decide monetary benefits

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 c) Identifying barriers of performance d) All of the above

3. When is the performance appraisal conducted?

a) During working hours b) during non-working hours

4. Who conducts performance appraisal?

a) Superior b) peers c)everyone d) outsider

5. Are you informed the reason for conducting performance appraisal programs?

a) Always b) Sometimes c) Never

6. How many meetings are scheduled in a year to discuss employee performance?

a) Nil b)once c) twice d) thrice

7. Does the performance appraisal programs relate to organizational goals?

a) To a high extent b) to some extent c) to a low extent

8. Are you involved along with the manager in designing the appraisal system at the
organization?

a) Always b) sometimes c) Never

9. Are the performance appraisal developed in relevance to employee job?

a) Highly relevant b) relevant c) no idea

b) d) irrelevant e) highly irrelevant

10. Do you share your opinion and suggestions freely to the managers during the
appraisal program?

a) Mostly b) rarely c) never

11. Are you given training of how to fill up performance appraisal forms?

a) Yes b) No

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12. Is the appraiser aware of your job responsibilities and duties?

a) Completely aware b) Aware to an extent c) Not aware

13. Other than performance appraisal does your superior provide you with informal
feedbacks for performance improvement?

a) Frequently b) Occasionally c) never

14. Are the raters involved while appraising employees?

a) Highly involved b) Less involved c) not involved

15. Do you feel that performance appraisal is important in an organization?

a) highly important b) less important c) not important

d) No idea

16. Is performance appraisal properly executed in your organization?

a) Yes b) no

17. Does top management support and encourage performance appraisal?

a) Highly supportive b) less supportive c) not supportive

18. Is the performance appraisal reviewed and updated now and then?

a) Frequently b) Occasionally c) never

19. Does performance appraisal identify employee potential for advancement?

a) Highly effectively b) effectively c) neutral

d) In effectively e) highly ineffectively

20. Sate your satisfaction through the performance appraisal program at the
organization?

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 a) Unsatisfactory
b) Needs Improvement
c) Meets Expectations
d) Outstanding

21. Do you feel that performance appraisal encourages you to put in more effort in
reaching your goals?

a) Strongly agree b) Agree c) Neutral

b) d) Disagree e) Strongly disagree

22. Do you obtain appraisal feed back?

a) Frequently b) occasionally c) Rarely d) Never

23. Are both five & negative points discussed to the employees?

a) Yes b) no

24. How do you feel when negative points are discussed?

a) Discouraged

b) determined to perform better

c) ready to learn

d) do not want to contribute

25. Rate your appraisal program

a) Reliable

b) Effective

c) Accurate

d) Motivating

e) Unbiased

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26. Do you feel comfortable in discussing your problems with your superior?
a) Highly Comfortable b) comfortable c) neutral
d) uncomfortable e) highly uncomfortable

27. On what criteria is employee performance rated?

a) Based on abilities and skills
b) Based on management reference
c) Based on superiority d) Based on contribution
28. What changes have been taken in the organization as a result of performance
appraisal?

a) Change in motivating strategy

b) Re-structuring of organization or individual objectives

c) Improvement in management-employee relationship

d) Making changes in dissatisfied areas

e) No decision taken

29. In general, how effective has your organization performance appraisal system in
improving overall performance

a) Highly ineffective

b) Ineffective

c ) Moderate

d) Effective

e) Highly effective

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 REFERENCES
BOOKS

1. Performance Management, Concepts, Practices and Strategies for Organisation success

by S. K. Bhatia, Deep & Deep Publications Pvt. Ltd, 2008.

2. Human Resource Management. By S. Seetharaman & B. Venkateswara Prasad, Scitech

Publication, 2007.

3. Kothari, C.R., Research Methodology - Methods & Techniques , New Delhi, New Age

international (P) Ltd., Publishers, Second Edition,2004.

4. Statistical Methods for Management, By P.N. Arora & S.Arora New Delhi, Sultan

Chand & Sons Publishers, 2005.

WEBSITE
www.yamaha.com

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www.citehr.com

www.performance-appraisal.com

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