A SYNOPSIS ON

Identify factors which are to be considered for performance appraisal for taking
a decision on performance system which shall be motivate employees, increase
productivity and ensure job retention.

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE MASTERS OF

MANAGEMENT STUDIES [HR]

UNDER UNIVERSITY OF MUMBAI

SUBMITTED BY
NEELAM AHIRE
ROLL
NO.MS1819001

UNDER THE GUIDENCE OF PROJECT GUIDE

PROF. DILIP JOSHI
BATCH 2018-2020

INSTITUTE OF MANAGEMENT &COMPUTER

STUDIES, THANE (W).
INTRODUCTION:
Performance appraisal may be defined as a structured formal interaction
between a subordinate and supervisor, that usually takes the form of a periodic
interview (annual or semi-annual), in which the work performance of the
subordinate is examined and discussed, with a view to identifying weaknesses
and strengths as well as opportunities for improvement and skills development.
Appraising the performance is method of evaluating the behaviour of employees
in the work spot, normally including both the quantitative and qualitative
aspects of job performance.
Performance refers to the degree of accomplishment of the tasks that make up
an individual’s job. It includes how well an individual is fulfilling the job
demands. In order to find out whether an employee is worthy of continued
employment or not, and if so, whether he should receive a bounds, a pay rise or
promotion, performance needs to be evaluated form time to time. It is by and
large useful for not only for the different payments purpose but also to make
aware of once strengths and weaknesses. So that employees can able to
understand that in which area they are supposed to improve their performance.
Under this exercise evaluation is not only the performance of worker on the job
but also employee potential for development for future expecting job roles.
Moreover performance appraisals should focus on wok planning and continuous
review for development. They should also focus on quality to survive in the
current environment.

OBJECTIVES:
 To evaluate the standard of accomplishment of work, including character,
ability and suitability connected to their work
 To decide on promotion, transfer, change, special raise in salary
 To help give recognition to good performers and to counsel under
performers.
 To assess the performance of the subordinate and provide guidance and
counselling to him to improve his performance
 To assess potential and to prepare an employee through appropriate
feedback and guidance for higher responsibilities.
SCOPE:
 Provide employees with a better understanding of their role and
responsibilities.
 Increase confidence through recognizing strengths while identifying
training needs to improve weaknesses.
 Improve working relationships and communication between supervisors
and subordinates.
 Increase commitment to organizational goals; develop employees into
future supervisors.
 Assist in personnel decisions such as promotions or allocating rewards.
 Allow time for self-reflection, self-appraisal and personal goal setting.

REVIEW OF LITERATURE:
The amount of research regarding the topic “Performance Appraisal” is so vast.
The topic is literally not new; it is as old as the formation of the organizations.
Before the early 1980’s, majority of theoretical studies emphasized on
revamping the rating system within the organization. The actions were a great
thing to reduce the chaotic of employee’s performance appraisal (Feldman,
1981). With the passage of the time the methods and rating system among the
employees got enhanced and received an immense appreciation and attentions
of the managers. Behavioural Observation Scale (BOS) is one of the best
techniques utilized by the managers torte the employees. The dilemma was on
the peak in the 1960s and 1970s. In the same period couple of new innovated
rating scales were introduced, which was Behaviourally Anchored Rating Scale
(BARS) and the Mixed Standard Scale (MSS).

LIMITATIONS :
 Leniency and strictness :-
Some bosses are lenient in grading their employees while some are very strict.
Employee who really deserves promotions may lose the opportunity due to
strict bosses while those who may not deserve may get benefits due to lenient
boss.
 Spill over effect :-
In this case the employee is judged positively or negatively by the boss
depending upon the past performance. Therefore although the employee
may have improved performance, he may still not get the benefit.

 Fear of losing subordinates and spoiling relations :-

Many bosses do not wish to spoil their relations with their subordinates.
Therefore when they appraise the employee they may end up giving
higher grades which are not required. This is an injustice to really
deserving employees.

 Goodwill and techniques to be used :-

Sometimes a very strict appraisal may affect the goodwill between senior
and junior. Similarly when different departments in the same company
use different methods of appraisal it becomes very difficult to compare
employees.