SHORT TERM PROJRCT ON

PERPORMANCE APPRAISAL

Sarai, Usri Road, Khagaul, Patna, Bihar 801105

Submitted to:- Submitted by:-

DR SWETA RAVI SHONAM KUMAR

FACULTY OF HRM ROLL NO- PGDM1921033

(ISM PATNA)
What is a Performance Appraisal?

A performance appraisal is a regular review of an employee's job

performance and overall contribution to a company. Also known as an
"annual review," "performance review or evaluation," or "employee
appraisal," a performance appraisal evaluates an employee’s skills,
achievements and growth, or lack thereof. Companies use performance
appraisals to give employees big-picture feedback on their work and to
justify pay increases and bonuses, as well as termination decisions.
They can be conducted at any given time but tend to be annual, semi-
annual or quarterly.

Why Companies give Performance Appraisals

Because companies have a limited pool of funds from which to award

raises and bounces performance appraisals help determine how to
allocate those funds. They provide a way for companies to determine
which employees have contributed the most to the company’s growth so
companies can reward their top-performing employees accordingly.

Performance appraisals also help employees and their managers

create for employee development through additional training and
increased responsibilities, as well as to identify shortcomings the
employee could work to resolve.

Ideally, the performance appraisal is not the only time during the year
that managers and employees communicate about the employee’s
contributions. More frequent conversations help keep everyone on the
same page, develop stronger relationships between employees and
managers, and make annual reviews less stressful. 

 Performance Appraisal Types

 Self assessment: Individuals rate their job performance and

behavior.
 Peer assessment: An individual's work group rates
his performance.
 360-degree feedback assessment: Includes input from an
individual, her supervisor and her peers.
  Negotiated appraisal: A newer trend, utilizes a mediator and
attempts to moderate the adversarial nature of performance
evaluations by allowing the subject to present first. Also focuses on
what the individual is doing right before any criticism is given. This
structure tends to be useful during conflicts between subordinates
and supervisors.

Advantages of Performance Appraisal

1. Promotion: Performance Appraisal helps the supervisors to chalk

out the promotion programmes for efficient employees. In this
regards, inefficient workers can be dismissed or demoted in case.
2. Compensation: Performance Appraisal helps in chalking out
compensation packages for employees. Merit rating is possible
through performance appraisal. Performance Appraisal tries to
give worth to a performance. Compensation packages which
includes bonus, high salary rates, extra benefits, allowances and
 pre-requisites are dependent on performance appraisal. The
criteria should be merit rather than seniority.
3. Employees Development: The systematic procedure of
performance appraisal helps the supervisors to frame training
policies and programmes. It helps to analyse strengths and
weaknesses of employees so that new jobs can be designed for
efficient employees. It also helps in framing future development
programmes.
4. Selection Validation: Performance Appraisal helps the
supervisors to understand the validity and importance of the
selection procedure. The supervisors come to know the validity
and thereby the strengths and weaknesses of selection procedure.
Future changes in selection methods can be made in this regard.
5. Communication: For an organization, effective communication
between employees and employers is very important. Through
performance appraisal, communication can be sought for in the
following ways:
a. Through performance appraisal, the employers can
understand and accept skills of subordinates.
b. The subordinates can also understand and create a trust and
confidence in superiors.
c. It also helps in maintaining cordial and congenial labour
management relationship.
d. It develops the spirit of work and boosts the morale of
employees.

All the above factors ensure effective communication.

6. Motivation: Performance appraisal serves as a motivation tool.

Through evaluating performance of employees, a person’s
efficiency can be determined if the targets are achieved. This very
well motivates a person for better job and helps him to improve his
performance in the future.
Q 1 Discuss the appraisal process in any organization and find out
whether the employee are happy and satisfied with the kind of
appraisal they are getting .

ANS – I talk to with a person that is working in techno serve india. His
post in the company is marketing linkage associate. He is working in the
organisation from two years. In techno serve india appraisal process as .
There is a domain name ULTIPRO. On ultipro individual employee has a
individual account. In ultipro all the information of the employee has
recorded. On ultipro individual hass to set his goal in the month of
February. Manager said about the goal what you do in this year. Every
one has his 5 goals in a year. Every one has on produser company.
Work for producer company is to increase share holder, business
increase , give licenece to the firm from other firm. After set a goal of the
employee it has goes to manager , senior manager and and country
head. They okay the goal of the employee. It takes the process of 2-3
month. This goal achieving start from month of april. After starting the
goal achievement it has progress report . in the month of November
every employee has to give their progess report how many work has
been completed. Every task has 1 credit. According to work employee
get their mark by the manager. Mark should be in one to five marks.
Then it has gone to senior manager for approval. After approval it has
gone to finance department for appraisal in monetary term. According to
marks every one has get their salry increment. Salary increment slabe is
7 % to 15 % . you have not completed your goal in out of 5 no
increment. If you have completed your all goal you get 15 % increment in
your salary. It takes the process of increment till the month of march.
Every one has to set their goal for next year till the month of February . if
you have not set your goal you don get the salary increment.

He said - In all the company some employee has outlayer. In all

company some up and down are available. I am satisfied with the
appraisal process of the company.