INTRODUCTION

Performance appraisal plays an important role in every organization.

Performance appraisal may be define as a structure formal interaction between a
subordinate and a supervisor , that usually take the form of a periodic interview ,
annual or semi-annual, in which the work performance of subordinate is examined
and discussed, with a view to identifying weakness and strength as well as
opportunity for improvement and skill development.

It is a systematic evaluation of present potential capabilities of personnel

and employees by their superiors, superior’s or a professional from outside, it is a
process of estimating or thing. It is a process of collecting, analyzing and
evaluating data relative to job behavior and result of individuals. The appraisal
system is organized on the principle of goal and management by objectives.

“Performance appraisal can be either formal or informal. Usage of formed

system schedule regular session in which to discuss on employee performance. In
formal appraisal are unplanned, often just chance statement made in passing about
an employee’s performance”.

“Performance Appraisal was also being referred as merit rating, employee’s

evaluation, progress report, service rating or fitness report but now these terms are not
in usage.”

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 NEED FOR THE STUDY

To know the function of the organization how they are really function, how the
policy are made and implemented and conveyed to the employees, to know these
things visited several department of Essar Steels Limited.

 Human resource development department

 Labour administration department
 Finance department
 Marketing department
 Quality circle department
 Operation department

During this period we should have a clear study regarding the industry,
organization and the functional area what we selected. Here I selected a topic
from Human Resource i.e. Performance Appraisal.

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 OBJECTIVES OF THE STUDY

 To study the process of performance appraisal system in the company.

 To know the performance appraisal technique implemented in Essar Steels.
 To know about the different forms used by the appraiser and appraise.
 To study about the evaluation of the employee performance and their key
result areas (KRA’s).
 To study about the effectiveness of performance appraisal system.

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 METHODOLOGY OF THE STUDY

Data Collection:

The accuracy of collected data is great significance of drawing current

inferences and rated conclusion from the investigation of the primary data.

The survey research is used because it is the best suited for descriptive
research where focus group and observation research is best suited for exploratory
research and experiments are best suited for casual research.

Primary Data:

Primary data is collected directly from respondents using data collection

methods like survey interviews, questionnaires, direct observation or tabulation. It is
collected to help solve a problem or take advantage of an opportunity on which a
decision is pending. An important source of primary date is survey research. The
various types of survey (Personal, mail, computer, and telephone).

a) Questionnaire:

Questionnaire consists of questions which are closed – ended as well as open –ended
questions having fixed response pattern with multiple answers. A total of 16 questions
were posed in the questionnaire to analyze the effectiveness of performance appraisal
system in the company.

b) Informal Interviews:

The informal interviews that are taken from the Human Resource Manager and some
of the executives were helpful in collecting the information.

Secondary Data:

Secondary data is the data that already exists which has been collected by some other
person or organization for their use and is generally made available to other
researchers free or at a confessionals rate.

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Sources of secondary data include:

 Websites
 Trade associations
 Journals
 Books etc….
In my project I have used some of the websites and books to gather information.

Sampling Design Adopted

Random Sampling:

A sampling process where each element in the target population has an equal
chance or probability of inclusion in the sample is known as simple random sampling.
It is one of the probability sampling methods. The sample size is 100. Most of the
employees in the company answered the questionnaire where I could carry out my
Statistical Analysis in an effective manner.

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 LIMITATIONS OF THE STUDY

Though the present study aims to achieve the above mentioned

objectives in full earnest and accuracy, it may be hampered due to certain limitations.
Some of the limitations of my study may be summarized as follows:

Employee bias:

 The primary date inference through personal interactions with the employee
may have an element of bias form the point of view of employee individual
perspective.

 The respondent’s suggestions may or may not be correct.

 The positive response from the employees was lacking which was the major
constrains

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 INDUSTRY PROFILE

 Similarity error.

 Miscellaneous biases.

 Social differentiation.

 Spill Over Effect.

STEPS FOR MAKING APPRAISAL SUCCESSFUL

Existence of an atmosphere of confidence and trust.

 The results of performance rather than personality traits should be given due
weight.
 The supervisor should analyze the strengths and weaknesses of the employee
and advise him.
 The appraisal programmed should be less time-consuming and less costly.
 The results of appraisal should be immediately communicated to the
employee.
 A post appraisal interview should be arranged.
 Training can be used to improve the standards of performance appraisal.
 The right appraisal tools should be chosen to minimize arising problem.

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 DATA ANLAYSIS & INTERPRETATION

1. Are you happy being associated with this company?

SL. NO RESPONSE RESPONDENTS PERCENTAGE

1 STRONGLY AGREE 50 50%

2 AGREE 50 50%

3 DISAGREE 0 0%

4 STRONGLY DISAGREE 0 0%

TOTAL 100 100%

INTERPRETATION

The above tabulation format shows that the 50% of the respondents strongly agrees,
50% of respondents are agree, 0% respondents are disagree, 0% are strongly disagree.

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 2. Is performance appraisal system helps in assessing competency?

SL. NO RESPONSE RESPONDENTS PERCENTAGE

1 STRONGLY AGREE 0 0%

2 AGREE 40 40%

3 DISAGREE 13 13%

4 STRONGLY DISAGREE 47 47%

TOTAL 100 100%

INTERPRETATION

The above tabulation format shows that 40% respondents agree, 47% respondents are
strongly disagree, 13% respondents are disagree, and 0% are strongly agree.

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 3. Does the performance appraisal help in creating an effective work
environment and positive relations?

SL. NO RESPONSE RESPONDENTS PERCENTAGE

1 STRONGLY AGREE 0 0%

2 AGREE 12 12%

3 DISAGREE 88 88%

4 STRONGLY DISAGREE 0 0%

TOTAL 100 100%

INTERPRETATION

The above tabulation format shows that12% respondents agree, 0% respondents

are strongly disagree, 88% respondents are disagree, and 0% are strongly agree.

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STRONGLY DISAGREE 0%

DISAGREE 88%

AGREE 12%

STRONGLY AGREE 0%

0% 20% 40% 60% 80% 100%

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 4. Performance Appraisal system helps in knowing the strengths and
weakness of subordinates.

SL.NO RESPONSE RESPONDENTS PERCENTAGE

1 STRONGLY AGREE 0 0%

2 AGREE 15 15%

3 DISAGREE 85 85%

4 STRONGLY DISAGREE 0 0%

TOTAL 100 100%

INTERPRETATION
The above tabulation format shows that 15% respondents agree, 0%
respondents are strongly disagree, 85% respondents are disagree, and 0% are strongly
agree.

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90%
85%
80%
70%
60%
50%
40%
30%
20%
15%
10%
0% 0% 0%
STRONGLY AGREE DISAGREE STRONGLY
AGREE DISAGREE

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 5. According to your opinion who is the best person to conduct performance
appraisal system?

SL.NO RESPONSE RESPONDENTS PERCENTAGE

1 SUPERIORS 35 35%

2 SUB ORDINATES 0 0%

3 PEERS 25 25%

4 HOD 40 40%

TOTAL 100 100%

INTERPRETATION

The above tabulation format shows that 40% respondents hod , 35% respondents
are superior, 25% respondents are peer, and 0% are subordinates.

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 HOD 40%

PEERS 25%

SUBORDINATES 0%

SUPERIORS 35%

0% 5% 10% 15% 20% 25% 30% 35% 40%

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 6. Which one do you think Is the best performance appraisal system in your
organization?

SL.NO RESPONSE RESPONDENTS PERCENTAGE

1 PERFORMANCE AND

POTENTIAL 85 85%
APPRAISAL

TEAM APPRAISAL 0 0%

SELF APPRAISAL 15 15%

360 DEGREE 0 0%
APPRAISAL

TOTAL 100 100%

INTERPRETATION:

The above tabulation format shows that 85% respondents potential and performance
appraisal, 0% respondents are team appraisal, 15% respondents are self appraisal, and
0% are 360 degree appraisal, performance and potential appraisal is the best appraisal
system in their organization.

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 7. What is your opinion on present performance appraisal system in your
organization?

SL.NO RESPONSE RESPONDENTS PERCENTAGE

1 EXCELLENT 46 46%

2 GOOD 18 18%

3 MODERATE 36 36%

4 BAD 0 0%

TOTAL 100 100%

INTERPRETATION

The above tabulation format shows that 46% respondent’s good18 % respondents
excellent, 36% respondents are moderate, and 0% are bad. Regarding their
performance appraisal system.

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 8. Do you think low performance is due to lack of skill?

SL.NO RESPONSE RESPODENTS PERCENTAGE

1 STRONGLY AGREE 0 0%

2 AGREE 85 85%

3 DISAGREE 15 15%

4 STRONGLY DISAGREE 0 0%

TOTAL 100 100%

INTERPRETATION

The above tabulation format shows that 85% respondents agree, 0% respondents
are strongly disagree,15% respondents are disagree, and 0% are strongly agree. That
the performance is low due to lack of skills.

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 9. Do you think performance appraisal help in assessing the training need of
the subordinates?

SL.NO RESPONSE RESPONDENTS PERCENTAGE

1 YES 85 85%

2 NO 0 0%

3 SOMETIMES 15 15%

TOTAL 100 100%

INTERPRETATION

The above tabulation format shows that 85% respondents yes 0% respondents are
no, 15% respondents are sometimes

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90%

80% 85%

70%

60%

50%

40%

30%

20% 15%
10%
0%
0%
YES NO SOMETIMES

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 10. Managers can get work out of employees without performance appraisal
system.

SL.NO RESPONSE RESPONDENTS PERCENTAGE

1 STRONGLY DISAGREE 0 0%

2 AGREE 75 75%

3 DISAGREE 25 25%

4 STRONGLY AGREE 0 0%

TOTAL 100 100%

INTERPRETATION

The above tabulation format shows that 75% respondents agree, 0% respondents
are strongly disagree,25% respondents are disagree, and 0% are strongly agree.

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 11. Will the performance appraisal system encourage the people to plan their
work well in advance?

SL.NO RESPONSE RESPONDENTS PERCENTAGE

1 STRONGLY AGREE 45 45%

2 AGREE 10 10%

3 DISAGREE 45 45%

4 STRONGLY DISAGREE 0 0%

TOTAL 100 100%

INTERPRETATION
The above tabulation format shows that10% respondents agree, 0%
respondents are strongly disagree,45% respondents are disagree, and 45% are strongly
agree.

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STRONGLY DISAGREE 0%

DISAGREE 45%

AGREE 10%

STRONGLY AGREE 45%

0% 10% 20% 30% 40% 50%

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 12. In this organization do people have an opportunity to participate in
their appraisal?

SL.NO RESPONSE RESPONDENTS PERCENTAGE

1 YES 65 65%

2 NO 15 15%

3 PARTIALLY 20 20%

TOTAL 100 100%

INTERPRETATION
The above tabulation format shows that65% respondents yes, 15% respondents
are no, and 20% are partially.

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 13. Did superiors give feedback to subordinates with full care and
concern?

SLNO RESPONSE RESPONDENTS PERCENTAGE

1 STRONGLY AGREE 0 0%

2 AGREE 50 50%

3 DISAGREE 0 0%

4 STRONGLY DISAGREE 50 50%

TOTAL 100 100%

INTERPRETATION

The above tabulation format shows that50% respondents agree, 50%

respondents are strongly disagree,0% respondents are disagree, and 0% are strongly
agree.

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 14. Do you think that performance appraisal system form basis for
making decision regarding promotion and reward system?

SL.NO RESPONSE RESPONDENTS PERCENTAGE

1 STRONGLYAGREE 14 14%

2 AGREE 52 52%

3 DISAGREE 34 34%

4 STRONGLYDISAGREE 0 0%

TOTAL 100 100%

INTERPRETATION

The above tabulation format shows that 52% respondents agree,0%

respondents are strongly disagree,34 % respondents are disagree, and 14% are
strongly agree.

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 15. Does the company go by merit or seniority with respect to promotion?

SL.NO RESPONSE RESPONDENTS PERCENTAGE

1 BY MERIT 12 12%

2 BY SENIORITY 15 15%

3 BOTH 73 73%

4 NONE 0 0%

TOTAL 100 100%

INTERPRETATION

The above tabulation format shows that 73% respondents both, 12% respondents
are by merit, 15 % respondents are by seniority, and,0% are none.

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80% 73%
70%

60%

50%

40%

30%

20% 15%
12%
10%
0%
0%
BY MERIT BY SENIORITY BOTH NONE

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 16. Are any monitory and non monitory benefits given for outstanding
performance?

SL.NO RESPONSE RESPONDENTS PERCENTAGE

1 YES 85 85%

2 NO 0 0%

3 PARTIALLY 15 15%

TOTAL 100 100%

INTERPRETATION

The above tabulation format shows that 85% respondents yes, 0% respondents are
no, and 15% are partially.

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90% 85%
80%
70%
60%
50%
40%
30%
20% 15%
10%
0%
0%
YES NO PARTIALLY

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 17. Do you think performance appraisal system effect the development of
organization?

SL.NO RESPONSE RESPONDENTS PERCENTAGE

1 YES 49 49%

2 NO 15 15%

3 PARTIALLY 36 36%

TOTAL 100 100%

INTERPRETATION

The above tabulation format shows that 49% respondents yes, 15% respondents
are no, and 36% are partially.

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 18. Does performance appraisal system concentrate on performance on
personality screening?

SL.NO RESPONSE RESPONDENTS PERCENTAGE

1 YES 76 76%

2 NO 24 24%

3 PARTIALLY 0 0%

TOTAL 100 100%

INTERPRETATION

The above tabulation format shows that 76% respondents yes 24% respondents
are no and 0% are partially

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 85%
90%
80%
70%
60%
50%
40%
30%
15%
20%
10% 0%
0%
YES NO PARTIALLY

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 19. Does the system help you to discuss those areas where you need to
improve?

SL.NO RESPONSE RESPONDENTS PERCENTAGE

1 YES 85 85%

2 NO 0 0%

3 PARTIALLY 15 15%

TOTAL 100 100%

INTERPRETATION

The above tabulation format shows that 85% respondents yes, 15% respondents are
no, and 0% are partially

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 85%
90%
80%
70%
60%
50%
40%
30%
15%
20%
10% 0%
0%
YES NO PARTIALLY

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 20. Objectives of the performance appraisal system are clearly spelt out?

SL.NO RESPONSE RESPONDENTS PERCENTAGE

1 STRONGLY AGREE 0 0%

2 AGREE 75 75%

3 DISAGREE 25 25%

4 STRONGLY DISAGREE 0 0%

TOTAL 100 100%

INTERPRETATION

The above tabulation format shows that 75% respondents agree,0% respondents
are strongly disagree,25% respondents are disagree, and 0% are strongly agree.

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 75%
80%
70%
60%
50%
40%
25%
30%
20%
10% 0% 0%
0%
STRONGLY AGREE DISAGREE STRONGLY
AGREE DISAGREE

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 FINDINGS

 Most of employees believe that performance and potential appraisal is the best
method in performance appraisal system.
 Almost all the employees are satisfied with present performance appraisal
system.
 Performance Appraisal helps in assessing the training need of the
subordinates.
 Employees are given opportunity to participate in their appraisal process.
 Subordinates are given feedback by their superiors regarding their
performance in organization.
 The promotions in the company are done on the basis of merit and seniority of
every employee.
 Performance Appraisal system also helps in the development of the
organization.
 The performance Appraisal system concentrates on performance on personal
screening of each and every employee.
 Performance Appraisal system also helps in discussing and identifying those
areas where an employee need to improve.
 The Objectives of the Performance Appraisal are clearly spelt to the employee
in organization.

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 SUGGESTIONS

 It is suggested that to make the performance appraisal should be more

effective in assessing the competencies of employees.

 It is suggested that the performance appraisal system has to

improve for creating an effective work environment.

 It is suggested that the performance appraisal system should be effectively

implemented for knowing the strengths and weaknesses of workers.

 It is suggested that the management has to concentrate on improving the skills

of employees to overcome the low performance.

 It is suggested that the managers can allot the work basing on the
performance of employees.

 It is suggested that the superior has to take full care and concerning giving the
feedback to subordinates.

 It is suggested that superiors should give feedback to subordinates regarding

their performance.

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 BIBLIOGRAPHY

 Human resource management. P. Subba rao first edition-1996. Himalaya

publishing house - Mumbai.
 Performance management system A.M Sharma first edition-2008.
Himalaya publishing house – Mumbai
 Performance management – Michacel Arstrong & Angela Baron – first
edition – 2006 – Jaico publishing house.
 Strategies for performance management – Dinesh K Srivasta – first
edition – 2005 – excel books – New Delhi.
 Performance Management System – R.K. Sahu-First Edition 2007- Excel
publication New Delhi
 Human Resource Management N.K. Singh – 1999- Excel books – New
Delhi
 Human Resource Management – H. John Bernadin – Third Edition –
2003- Tata MCHRAW Hill – New Delhi.
 Research Methodology - C.R. Kothari - New Age International

WEBSITES:

www.google.com

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