A STUDY ON PERFORMANCE APPRAISAL OF EMPLOYEES IN

THIRUVALLA MEDICAL MISSION HOSPITAL

PROJECT REPORT
Submitted by,
ANSON A NINAN
MZC18MBA09

Under the guidance of

Mr. Jithin John

(Assistant Professor, Mount Zion School of Business Management)

in partial fulfillment of the requirement for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

of

APJ ABDUL KALAM TECHNOLOGICAL UNIVERSITY, Trivandrum

SCHOOL OF BUSINESS MANAGEMENT

MOUNT ZION COLLEGE OF ENGINEERING
KADAMMANITTA
JANUARY, 2020

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 DECLARATION

I undersigned, hereby declare that the project titled “A STUDY ON PERFORMANCE

APPRAISAL OF EMPLOYEES IN THIRUVALLA MEDICAL MISSION HOSPITAL”
submitted in partial fulfilment for the award of Degree of Master of Business Administration
of APJ Abdul Kalam Technological University is a bonafide record of work done by me
under the guidance of Prof.Jithin John, MBA Department of Mount Zion College of
Engineering, Kadammanitta. This report has not previously formed the basis for the award of
any degree, diploma, or similar title of any University.

07-02-2020 ANSON A NINAN

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 ACKNOWLEDGEMENTS

Through this acknowledgement I express my sincere gratitude towards all

those people who helped me in this project, which has been a learning experience.

This space wouldn’t be enough to extend my warm gratitude towards Prof.

Jithin John., Project Guide Assistant Professor of the Dept.,Mountzion School of Business
Management, Kadammanitta for her efforts in coordinating with my work and guiding in
right direction.

I escalate a heartfelt regard to Prof. Dr. T.C Varghese, Director, Mountzion

School of Business Management, Kadammanitta to us for giving me the essential hand in
concluding this work.

It would be injustice to proceed without acknowledging those vital supports I

received from my beloved classmates and friends, without whom I would have been half
done.

I also use this space to offer my sincere love to my parents and all others who had
been there, helping me walk through this work.

ANSON A NINAN

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 TABLE OF CONTENTS

S.L NO CONTENTS PAGE NO

1 INTRODUCTION 6

2 CHAPTER 1 7

Review of literature 8

Objectives of the study

Limitations of the study

3 CHAPTER 2 16

Industry profile

Company profile

CHAPTER 3
4 26

Research Methodology

5 CHAPTER 4 32

Data analysis & Interpretation

6 CHAPTER 5 60

Findings & Suggestions

7 CONCLUSION 63

BIBLIOGRAPHY 65

8 ANNEXURE 67

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INTRODUCTION

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 INTRODUCTION

A Performance Appraisal (PA) is a method by which the job performance of an

employee is evaluated. Performance appraisal is a systematic and periodic process that assesses an
individual employee’s job performance and productivity in relation to certain per-established
criteria and organizational objective. Performance Appraisal is the process of obtaining, analyzing
and recording information about the relative worth of an employee. It is a management tool which
is helpful in motivating and effectively utilizing human resources. Evaluation of the performance
and personality of each employee is done by his immediate superior or some other person trained
in the techniques of merit rating.

Performance Appraisal is the process of assessing the performance and progress of an

employee or a group of employees on a given job and his / their potential for future development.
It consists of all formal procedures used in the working organizations to evaluate personalities,
contributions and potentials of employees.

The study of the performance appraisal on the employees of Thiruvalla Medical Mission
Hospital aimed to analyses the performance appraisal system the company. The main objectives of
the study are to analyze the performance appraisal system of the employees and to find out the
satisfaction level of the employees on the current appraisal system. To find out whether the
performance appraisal improves productivity, whether the bonus and incentive system are linked to
performance appraisal, and whether it helps to identify hidden talents. Research methodology is a
systematic method of finding solutions to problems. It is essentially an investigation, a recording
and an analysis of evidence for the purpose of gaining knowledge. Various suggestions have been
put forward to increase and improve the existing performance appraisal system of employees.

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 CHAPTER- 1

REVIEW OF LITERATURE

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 PERFORMANCE APPRAISAL

Performance Appraisal is the process of measuring quantitatively and qualitatively on employees

past or present performance against the background of his expected role performance, the
background of his work environment, and about his future potential for an organization.

According to Edward Flippo, “Performance appraisal is the systematic, periodic and an impartial
rating of an employee’s excellence in matters pertaining to his present job and his potential for
better job”. The purpose of performance appraisal is to help the employee perform better,
accomplish and be motivated to work towards making an organization more effective.
Performance appraisal includes all formal procedures used to evaluate personalities and
contribution and potentials of group members in a working organization.

FEATURES OF PERFORMACE APPRAISAL

The main features of performance appraisal are;

 Performance Appraisal is a systematic process consisting of steps to be followed for

evaluating an employee’s strength and weakness.
 It is an ongoing and continuous process where the evaluation is arranged periodically
according to a definite plan.
 The performance appraisal seeks to secure information necessary for making objectives
and correct decisions on employees.
 Performance Appraisal may be formal or informal. The formal system is fairer and
objective since it is carried out in a systematic manner using printed appraisal forms.
 It is a systematic and objective description of an employee’s strength and weakness in
terms of the job.

OBJECTIVES OF PERFORMANCE APPRAISAL

Performance Appraisal can be done with following objective in mind.

A. Work-related Objectives

 To access the work of employees in relation to job requirements.

 To improve efficiency
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  To help the management in fixing employees according to their capacity, interest,
aptitude and qualifications.

B. Career Development Objectives

 To access the strong and weak points in working of employees and finding
remedies for weak points through training.
 To plan promotions, transfers, layoff etc. of the employees.
 To plan career goals.

C. Communication

 To provide feedback to employees so that they come to know where they stand and
can improve their job performance.
 To develop positive superior-subordinate relations and thereby reduce grievances.

D. Organizational Objectives

 To serve as a basis for promotion or demotion.

 To serve as a basis for wage and salary administration.
 To serve as a basis for planning suitable training and development programs.

STEPS OF PERFORMANCE APPRAISAL

There are several steps regarding the performance appraisal process. One of the standard appraisal
processes is shown below;

I. Establishing standards

II. Communicating standards to employees

III. Measuring actual performance

IV. Comparing actual with standards

V. Discussing reports with employees

VI. Taking corrective actions

ADVANTAGES OF PERFORMANCE APPRAISAL

It is said that performance appraisal is an investment for the company which can be
justified by following advantages.

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 1. Promotion

Performance appraisal helps the supervisors to check out promotion programs for efficient
employees. In this regards, inefficient workers can be dismissed or demoted.

2. Compensation

Performance appraisal helps in chalking out compensation packages for employees. Merit rating is
possible through performance appraisal. Compensation packages which include bonus, high salary,
rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. The
criteria should be merit rather than seniority.

3. Employee Development

The systematic procedure of performance appraisal helps the supervisors to frame training policies
and programmes. It helps to analyses strengths and weakness of employees so that new jobs can be
designed for efficient employees. It also helps in framing future.

4. Development Program.

Communication for an organization, effective communication between employees and employers

is very important. Through performance appraisal, the employers can understand and accept skills
of subordinates. It also helps in maintaining cordial and congenial labour management
relationship.

5. 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.

METHODS OF PERFORMANCE APPRAISAL

Several methods are used for evaluating employee’s performance.

I. Traditional Methods
Traditional approach is also known as traits approach. It is based on evaluation of traits in a
person. The various types of traditional methods used for evaluating the performance are;

a) Confidential Report

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Confidential report system is well known method of performance appraisal system mostly being
used by the government organizations. In this method of appraising system, subordinates is
observed by his superiors regarding his performance in the job and on his duties done. Thereafter
superior writes confidential report on his performance, mainly on his behavior in the organization
and remarks if any. Confidential reports will be kept confidential and will not revealed to anyone
and finally it will be forwarded to top management officials for taking decisions against person on
whom confidential report has made.

b) Graphic Rating Scales

It is the simplest and most popular method for appraising performance. A rating scale lists and a
range of performance value for each traits. The supervisor rates each subordinate by checking the
score that describes his performance for each trait. The supervisor rates each subordinates by
checking the score that describes his performance for each trait.

c) Critical Incidents Methods

This technique of performance appraisal was developed by Flangan and Burns. The manager
prepares lists of statements of very effective and ineffective behavior of an employee. These
critical incidents or events represent the outstanding or poor behavior of employees on the job. The
manager maintains logs on each employee, whereby he periodically records critical incidents of
the workers behavior.

d) Check List Method

The rate is given a checklist of the descriptions of the behavior of the employees on the job. The
checklist contains a list of statements on the basis of which the rater describes on the job
performance of the employees. Another simple type of individual evaluation method is the
checklist. A checklist represents in its simplest form a set of objectives or descriptive statements
about the employee and his behavior. A more recent variation of the checklist method is the
weighted list. Under this, the value of each question may be weighted equally or certain questions
may be weighted more heavily than others.

e) Grading Method

Under this system, certain features like analytical ability, co-cooperativeness, dependability, job
knowledge etc. are selected for evaluation. The employees are given grades according to the
judgment of the rater. The grades include,

A-Outstanding

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 B-Very Good
C-Satisfactory
D-Average
E-Below Average
f) Straight Ranking Method

Under the ranking method, the manager compares an employee to other similar employees, rather
than to a standard measurement. Every employee is judged as a whole without distinguishing the
rates from his performance. A list is prepared for ranking the workers in order of their performance
on their job so that an excellent employee is at top and poor at bottom.

g) Paired Comparison

A better technique of comparison than the straight ranking method, this method compares each
employee with all others in the group, one at a time. After all the comparisons on the basis of the
overall comparisons, the employees are given the final rankings.

h) Free Easy Method

The traditional form of appraisal also known as free form method involves a description on the
performance of an employee by his superior. The description is an evaluation of the performance
of any individual based on the facts.

i) Work Sample Test

In this method, employees are given from time to time, work related tests which are then
evaluated.

II. Modern Methods

Modern methods used for evaluating an employee performance are;

a) Assessment Centre

An assessment centre typically involves the use of methods like social or informal events, test and
exercises, assignments being given to a group of employees to assess their competencies to take
higher responsibilities in the future. Generally, employees are given an assignment similar to the
job they would be expected to perform if promoted. The trained evaluators observe and evaluate
employees as they perform the assigned jobs and are evaluated on job related characteristics

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include examples and evidences to support the information. A major drawback of the method is the
inseparability of the bias of the evaluator.

b) Group Appraisal

Here the employees are rated by an appraisal group consisting of their supervisors or three or four
other persons who have same knowledge of their performance.

c) Field Review Method

Under this method, an expert from personnel department interviews line supervisors to evaluate
their respective subordinates. The expert questions the supervisors and obtains all important
information on each employee and takes note in his note book.

d) Nominations

Under this method appraisers are asked to identify the exceptionally good and exceptionally poor
performers, who are then singled out for special treatment.

e) Behaviorally Anchored Rating Scales

Behaviorally Anchored Rating Scales [BARS] is a relatively new technique which combines the
graphic rating scale and critical incidents method. It consists of predetermined critical areas of job
performance or sets of behavioral statements describing important job performance qualities as
good or bad. These statements are developed from critical incidents. In this method, an employee’s
actual job behavior is judged against the desired behavior by recording and comparing the
behavior with BARS. Developing and practicing BARS requires expert knowledge.

f) Human Resource Accounting

It is a method to measure the effectiveness of personnel management activities and the use of
people in an organization. HRA is the process of assigning, budgeting and reporting the cost of
human resources incurred in an organization, including wages and salaries. Human resources are
valuable assets for every organization. Human resources accounting method tries to find the
relative worth of these assets in the terms of money. In this method the performance appraisal of
the employees is judged in terms of cost and contribution of the employees. The cost of employees
include all the expenses incurred on them like their compensation, recruitment and selection cost,
induction and training cost etc. whereas their contribution includes the total value added.

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 g) Management by Objectives

The concept was introduced by Peter F Drucker in 1954 who named it management by objectives
and self-control. It is an effective way, it is also known as goal setting approach to appraisal. In
this process the supervisor and subordinate members jointly identify the common goals of the
organizations and set the areas of the responsibility of each individual in terms of results expected
from that person. These measures are used for operating the unit as well as for appraising the
performance of the employee.

h) 360 Degree Appraisal

The 360 degree method of performance appraisal process is more transparent, objective and
participative. It introduced the concept of self-appraisal subordinates, peer appraisal and appraisal
by customers. It is called 360 degree method because it involves the evaluation of an employee by
persons above him, below him and alongside him. Structured questionnaire are used to collect
information from the seniors, subordinates and peers. The employees to be motivated, thus
acquires a central position and everyone around him participates in the appraisal process in the 360
degree method.

i) Computerized and Web Based Performance Appraisal

Nowadays, several performance appraisal software programmers are also available in the market.
These programs enable the managers to and then to electronically rate on a series of performance
traits. Written text is also generated to support each part of the appraisal. Electronic performance
monitoring is in some respects ultimate in computerized appraisal. In EPM the supervisors
electronically monitor his performance.

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OBJECTIVES OF THE STUDY

Objectives have been classified as primary and secondary objectives

Primary Objectives :

 The study is to analyze performance appraisal system of Tiruvalla Medical Mission Hospital
(TMM).

Secondary Objectives:
 To understand the satisfaction level of employees with the current appraisal system

 To study whether bonus and incentives are linked to the performance of the employees.

 To study whether performance appraisal leads to the improvement in productivity of employees.

 To analyse whether performance appraisal lead to identification of hidden talents.

LIMITATIONS OF THE STUDY

 The result of the study is subject to bias and prejudices of the respondents.
 Unwillingness and inability of the respondents to provide true information.
 It was very difficult to collect information from the workers because of their busy
schedule.

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CHAPTER- 2
PROFILES

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 INDUSTRIAL PROFILE

As the largest industry in 2006, health care provided 14 million jobs – 13.6 million jibs for wage
and salary workers and about 438000 jobs for the self employed, 7 of the 20 fastest growing
occupations are health care related. Health care will generate 3 million new wage and salary jobs
between 2006 and 2016, more than any other industry. Most workers have that require less than 4
years of college education, but health diagnosing and treating practitioners are among the most
educated workers.

About 580000 establishments make up the health care industry; they vary greatly in terms
of size, staffing patterns, and organizational structures. Nearly 77 percent of health care
establishments are offices of physicians, dentists, or other health practioners.

The health care industry includes establishments ranging from small-town private practices
of physicians who employ only one medical assistant to busy inner city hospital those provide
thousands of diverse jobs. In 2006, almost half of non hospital health care establishments
employed fewer than five workers.

The health care industry consists of the following nine segments:-

 Hospitals:

Hospitals provide complete medical care, ranging from diagnostic service, to surgery, to
continuous nursing care. Some hospitals specialize in treatment of the mentally ill, cancer patients,
or children. Hospital based care may be on an inpatient (overnight) or outpatients basis. The mix of
workers needed varies, depending on the size, geographic location, goals, philosophy, funding,
organization, and management style of the institution. As hospitals work to improve efficiency,
care continues to style from an inpatient to outpatient basis whenever possible. Many hospitals
have expanded into long term and health care services, providing a wide range of care for the
communities they serve.

 Nursing and residential care facilities:

Nursing care facilities provide inpatient nursing, rehabilitation, and health related personal
care to those who need continuous nursing care, but do not require hospital services. Nursing aides
provides the vast majority of direct care. Other facilities, such as convalescent homes, help patients

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who need less assistance. Residential care facilities provide around the clock social and personal
care to children, the elderly, and others who have limited ability to care, however are not the main
function of establishment providing residential care as they are in nursing care facilities.

 Offices of physicians:

About 37 percent of all healthcare establishments fall into this industry segment. Physicians
and surgeons practice privately or in groups of practitioners who have the same or different
specialties. Many physicians and surgeons prefer to join group practices because they afford
backup coverage, reduce overhead expenses, and facilitate consultation with peers. Physicians and
surgeons are increasingly working as salaried employees of group medical practices, clinics, or
integrated health systems.

 Offices of dentists:

About 1 out of every 5 health care establishments is a dentist’s offices. Most employ only a
few workers, who provide preventative, cosmetic, or emergency care. Some offices specialize in a
single field of dentistry such as orthodontics or periodontics.

 Home health care services:

Skilled nursing or medical care is sometimes provided in the home, under a physician’s
supervision. Home health care services are provided mainly to the elderly. The development of in
home medical technologies, substantial cost savings, and patients preference for care in the home
have helped change this once small segment of the industry into one of the fastest growing parts of
the economy.

 Offices of other health practitioners:

This segment of the offices of chiropractors, optometrists, podiatrist, occupational and

physical therapists, psychologists, audiologists, speech language pathologists, dieticians, and other
health practitioners. Demand for the services of this segment is related to the ability of patients to
pay, either directly or through health insurance. Hospitals and nursing facilities may contract out
for these services. This segment also includes the offices of practitioners of alternative medicine,
such as acupuncturists, homeopaths, hypnotherapists and naturopaths.

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  Outpatient care centers:

The diverse establishments in this group include kidney dialysis centers, outpatient mental
health and substance abuse centers, health maintenance organization medical centers, and
freestanding ambulatory surgical and emergency centers.

 Other ambulatory health care services:

This relatively small industry segment includes ambulance and helicopter transport services,
blood and organ banks, and other ambulatory health care services, such as pacemaker monitoring
services and smoking cessation programs.

 Medical and diagnostic laboratories:

Medical and diagnostic laboratories provide analytic or diagnostic services to the medical
profession or directly to patients following a physician’s prescription. Workers may analyze blood,
take x-ray and computerized tomography scans, or perform other clinical test. Medical and
diagnostic laboratories provide the fewest number of jobs in the healthcare industry.

Healthcare has become one of Indian’s largest sectors- both in terms of revenue and
employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing,
telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare
sector is growing at a brisk pace due to its strengthening coverage, services and increasing
expenditure by public as well private players.

Indian healthcare delivery system is categorized into two major components-public and
private. The government, i.e. public healthcare system comprises limited secondary and tertiary
care institutions in key cities and focuses on providing basic healthcare (PHCs) in rural areas. The
private sector provides majority of secondary, tertiary and quaternary care institutions with a major
concentration in metros, tier 1 and tier 2 cities.

India’s competitive advantage lies in its large pool of well trained medical professionals.
India is also cost competitive compared to its peers in Asia and western countries. The cost of
surgery in India is about one tenth of that in the US or Western Europe.

MARKET SIZE
The overall Indian healthcare market today is worth US$100 billion and
is expected to grow to US$280 billion by 2020, a compound annual growth rate (CAGR) of 22.9

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percent. Healthcare delivery, Which includes hospitals, nursing homes and diagnostics centers,
and pharmaceuticals, constitutes 65 percent of the overall market.

There is a significant scope for enhancing healthcare service considering that healthcare
spending as a percentage of Gross domestic Product (GDP) is rising rural India, which account
for over 70 percent of the population, is set to emerge as a potential demand source.

India requires 6000000 to 7000000 additional beds over the next five to six years, indicative
of an investment opportunity of US$258-30 billion. Given this demand for capital, the number of
transaction in the healthcare space is expected to witness an increase in near future. The average
investment size by private equity funds in healthcare chains has already increased to US$ 20-30
million from US$ 5-15 millions.

The Indian medical tourism industry is pegged at US$ 3 billion per annum, with tourist
arrivals estimated at 230000. The Indian medical tourism industry is expected to reach US$6
billion by 2018, with the number of people arriving in the country for medical treatment set to
double over the next four years. With greater number of hospitals getting accredited and receiving
recognition, and greater awareness on the need to develop their quality to meet international
standards, Kerala aims to become India’s healthcare hub in five years.

INVESTMENTS
The hospital and diagnostic centers attracted Foreign Direct Investment (FDI) worth US$ 3.21
billion between April 2000 and September 2015, according to data released by the Department of
Industrial Policy and Promotion (DIPP).

GOVERNMENT INITIATIVES
India’s universal health plan that aims to offer guaranteed benefits to a sixth of the world’s
population will cost an estimated Rs. 1.6 trillion (US$24.03 billion) over the next four years.

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 COMPANY PROFILE
Tiruvalla Medical Mission (TMM) is a leading Multi-specialty Hospital in Central Trava
ncore serving the people in and around Tiruvalla for over eight decades. Begun as a small 6 bed cli
nic in 1935, today it is a leading multi-specialty healthcare and training centre having 450 beds wit
h almost all clinical departments and facilities.
TMM is a registered Charitable Society under the official name “The Dewan Bahadur Dr. V. Verg
hese Hospital Trust Association”
The people of Tiruvalla and Central Travancore nicknamed the hospital as “ Saayippinte Aasupath
ri”

History and Overview

 1935 – Tiruvalla Medical Mission Hospital started with 6 beds by Dewan

Bahadur Dr. V Verghese
 1940 – The hospital and adjacent lands handed over to a charitable Missionary Trust. Dr.
Church ward took the responsibility of the running of the institution.
 1941 – A Male ward was built
 1942 – A Female ward was built
 1943 – TMM School of Nursing started
 1943 – A private ward named Anujans ward was built
 1944 – A branch hospital, TMM Vazhoor with 100 beds was constructed
 1946 – Tottakkad hospital was opened which was later handed over to Kerala
 Government in 1962
 1947 – TMM Mannamaruthy hospital with 50 beds was started
 1948 – Dr. Eric Rea from Ireland joined TMM. Since then many foreign missionary doctor
s worked at TMM. Dr. Gilmour Davis (Wales), Dr. Churchward (England), Dr. Smith (Aus
tralia) was few among them. Apart from them, many dedicated doctors from Kerala & else
where served this hospital.
 2004 – TMM College of Nursing started (B.Sc & M.Sc Nursing Courses)
 2010 – ‘Platinum Jubilee Building was inaugurated
 2012 – TMM Cardiac Centre and CT Scan unit inaugurated

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 Uniqueness
 Patient’s care – specialized nursing care given along with effective treatment

 Affordable cost for the middle-income patients

 Free medical treatment for economically weak patients

 ‘ Study Now Pay Later’ Scheme for General Nursing students

 Prayer and spiritual counsel offered to all

Governance

This Institution is governed by “ Dewan Bahadur Dr. V Verghese Hospital Trust Association
” which is registered as a charitable organization under ‘The Travancore Cochin Literary Scientific
and Charitable Societies Act 1955. This Trust Association consists of total 26 members in the Ge
neral Body of which 18 members constitutes the Governing Board. The Governing Board meets ev
ery 3 months to review the functioning of the institution. The Governing Board consists of various
committees such as Establishment Committee, Screening Committee, and Spiritual Committee etc.
These committees meet once in a month.
The present office bearers of the Governing Board are as follows:
 Mr. George Koshy – Chairman
 Mr. Sunny Thomas – Vice Chairman
 Mr. Sabu Abraham – Secretary
 Mr. Jacob John – Joint Secretary
 Mr. Saji Mathew – Treasurer
 Mr. Abraham Varkey – Joint Treasurer

Other Committees functioning at TMM are:

 Administrative Committee
 Hospital Infection Control Committee
 Quality Improvement Committee
 Pharmacy & Therapeutic Committee
 Blood Transfusion Committee
 Medical Records Committee
 Safety Committee Organization Structure

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 Vision
To Be a Leading Patient Friendly Hospital by offering Quality Patient Care and Education based o
n Love and Compassion.

Mission
Tiruvalla Medical Mission (TMM) exists to share the compassion of Jesus Christ with the s
ick, by offering affordable medical services and spiritual counsel, leading to their healing and whol
eness.

Scope of Service
TMM, currently having strength of about 930 staff including 97 doctors and 340 nursing staff, is a
ble to provide a quality service to the patients. We have the following departments.
 Anesthesiology
 Obstetrics and Gynecology
 General Medicine
 Diabetic Specialty Centre
 General Surgery
 Urology
 Orthopedics
 Pediatrics
 Neonatology (Stage I, II, III)
 Pulmonology
 Cardiology
 Cardio Thoracic & Vascular Surgery Unit
 Gastroenterology
 Endocrinology
 Neurology
 Neurosurgery
 ENT
 Plastic Surgery
 Psychiatry

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  Dermatology
 Ophthalmology
 Dental
 Nephrology
 Radiology

Facilities Offered
In addition, the following facilities are available:
 24-hour Emergency Department
 24-hour Pharmacy
 24-hour Laboratory
 24-hour Emergency Ambulance Service having ICU facility
 24-hour Blood Bank & Blood component Separation Unit
 24-hour Mortuary
 TMM Cardiac Centre with Cathlab facility
 Snake Bite Treatment
 Dialysis Unit
 CT Scan, Ultrasound Scan, Anomaly Scan
 Executive Health Check-up
 Cardio Diabetic Health Check up

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 CHAPTER- 3
RESEARCH METHODOLOGY

25
 RESEARCH METHODOLOGY

RESEARCH MEANING

Research as "the manipulation of things, concepts of symbols for the purpose of generalizing to
extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in the
practice of an art."

RESEARCH DEFINITION

According to John. W. Best

“The secret of our culture developments has been research, pushing back the areas of
ignorance by discovering new truths, which in turn lead to better ways of doing things and better
products.”

RESEARCH METHODOLOGY

Research methodology is the systematic theoretical analysis of the methods applied to a field of study,
or the theoretical analysis of the body of methods and principles associated with a branch of knowledge.
It typically encompasses concepts such as paradigm, theoretical model, phases and quantitative or
qualitative techniques.

TOPIC

“A STUDY ON PERFORMANCE APPRAISAL AT TIRUVALLA MEDICAL

MISSION HOSPITAL (TMM)”

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RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information
needed. 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 procedure.
UNIVERSE

A population is the aggregate of all the units under study in any field of enquiry. It is a
collection of individuals or their values which can be numerically specified. A population can be
finite. Employees in the company are the population of this study, which are 879.

SAMPLE DESIGN

A sample design is a definite plan determined before any data are actually collected for
obtaining a sample from a given population. It refers to the procedure adopted by a researcher for
selecting items for a sample. Sampling is used to collect data from limited numbers whereas census is
used for large numbers.

SAMPLE
A finite subset of a population, selected from it with the objective of investigating its properties is
called a sample of that population. A sample is a representative part of the population.

SAMPLE SIZE
It refers to the number of items to be selected from the universe to constitute a sample. For this
study, sample size is 50 employees.

SAMPLING
Sampling may be defined as the process of obtaining information about an entire population
(universe) by examining only a part of it. For this, a 'sample' is selected, which is the part of the
universe or the whole population. Simple random sampling is used to select the sample of this study.

SIMPLE RANDOM SAMPLING

A simple random sample is a sample selected from a population in such a way that every
member of the population has an equal chance of being selected and the selection of individual
does not influence the selection of any other.

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 DATA COLLECTION

Data collection is one of the most important stages in conducting a research. Data collection
is a very demanding job which needs thorough planning, hard work, patience, perseverance and more to
be able to complete the task successfully. Data collection starts with determining what kind of data is
required, followed by the selection of a sample from a certain population. There are two types of
sources of data for data collection:

PRIMARY DATA

The primary data are those collected by the investigator himself for the first time. Such data
are original in character and are generated in large number of surveys conducted mostly by government
and also by some individuals, institutions and research bodies.

SOURCES FOR COLLECTION OF PRIMARY DATA

 Interview: Personal interview and interaction with the respondents (employees) with
officers and other employees
 Questionnaires: A questionnaire has been prepared and distributed among the respondents
(employees) for both executives and non-executives.

SECONDARY DATA

Secondary data is the data which are not originally collected but rather obtained from
published or unpublished sources. Collection of secondary data has the advantage of being less
expensive and less time consuming. Careful scrutiny must be made before using secondary data. The
secondary data collected should be suitable, adequate and reliable.

SOURCES FOR COLLECTION OF SECONDARY DATA

 Company records
 Annual reports
 Books
 Journals & Magazines
 Website

28
TECHNIQUES USED FOR PRESENTATION

The main techniques/ tools used for the presentation of data in this project are:

1. Tables
2. Graphs

1. Table: Tables are used to present numerical data in a wide variety of data. Table contains
rows and columns. It is classified into homogeneous groups. They are the format in which most
numerical data are initially stored and analyzed and are likely to be the means you use to organize
data collected during research work.
2. Graphs: Graphs are a good means of describing, exploring or summarizing numerical data
because the use of visual image can simplify complex information and help to highlight patterns
and trends in the data. Graphs used for representation are Pie charts and Bar charts.
 Pie Charts: Pie charts are a visual way of displaying how the total data are distributed between
different categories. It should be only used for displaying nominal data (i.e. data that are
classed into different categories). They are generally best for showing information grouped into
a small number of categories and are a graphical way of displaying data that might otherwise
be presented as a simple table.
 Bar Charts: Bar charts are one of the most commonly used types of graph and are used to
display and compare the number, frequency or other measure for the different discrete
categories or groups. The graph is constructed such that the heights or lengths of the different
bars are proportional to the size of the category they represent. Since the x-axis (the horizontal
axis) represents the different categories it has no scale. The y-axis (the vertical axis) does have
a scale and this indicates the units of measurement.

 TECHNIQUES USED FOR ANALYSIS AND INTERPRETATION

Data analysis and interpretation is the process of assigning meaning to the collected
information and determining the conclusion, significance and implications of the findings.
Percentage analysis is used to make analysis and interpretation of data in this study.

1. Percentage Analysis: It refers to a special kind of ration in making comparison between

two or more data and to describe relationships. Percentage can also be used to compare the relation
terms the distribution of two or more source of data.

29
 Number of Respondents

Percentage Analysis = --------------------------------------- *100

Total Respondents

2. Software Tools:
 Microsoft Office Word: Text editing software
 Microsoft Office Excel: Software used for calculations and creation of charts.

30
 CHAPTER-4
DATA ANALYSIS
AND
INTERPRETATION

31
 TABLE 4.1 AGE WISE CLASSIFICATION OF THE EMPLOYEES

Particulars No. of Respondents Percentage

20-30 15 30
30-40 18 36
40-50 5 10
Above 50 12 24
Total 50 100

CHART 4.1 AGE WISE CLASSIFICATION OF THE EMPLOYEES

36

30

24

10

20-30 30-40 40-50 Above 50

INTERPRETATION

The above graph depicts that 30% of the employees comes in the age range of 20-30.
36%of employees are of the range 30-40 while 10% employees are of age range 40-
50 and only 24% employees is of age range Above 50

32
 TABLE 4.2 GENDER WISE CLASSIFICATION OF EMPLOYEES

Particulars No. of respondents Percentage

Male 20 40
Female 30 60
Total 50 100

CHART 4.2 GENDER WISE CLASSIFICATION OF EMPLOYEES

40%

60%

INTERPRETATION

The above graph shows that, 40%of the employees are men and 60% are female
workers in the company.

33
 TABLE 4.3 MARITAL STATUS OF THE EMPLOYEES

Particulars No. of respondents Percentage

Single 15 30
Married 35 70
Total 50 100

CHART 4.3 MARITAL STATUS OF THE EMPLOYEES

70

30

Single Married

INTERPRETATION

The above graph represents that 70% of the employees in the company are married a
nd 30% are unmarried

34
 TABLE 4.4 EDUCATIONAL QUALIFICATION OF EMPLOYEES

Particulars No. of respondents Percentage

SSLC 2 4
Higher Secondary 4 8
Graduation 22 44
Post Graduation 10 20
Technical / Professional 12 24
Total 50 100

CHART 4.4 EDUCATIONAL QUALIFICATION OF EMPLOYEES

4%
8%
24%

20% 44%

INTERPRETATION

The above graphs show that 44% of respondents completed their graduation while
24% of employees have technical / professional qualification. 20% employees
finished post graduation .8% employees completed higher secondary while 4%
employees completed SSLC.

35
 TABLE 4.5 EXPERIENCE OF THE EMPLOYEES

Particulars No. of respondents Percentage

Below 5 8 16
5-10 11 22
10-15 18 36
Above 20 12 24
Total 50 100

CHART 4.5 EXPERIENCE OF THE EMPLOYEES

16%
26%
Below 5
5 to 10
22% 10 to 15
Above 20

36%

INTERPRETATION

The above figure represents the experience level of respondents. 36% of the
respondents have the experience between 10-1, 26% of them have above 20 years
experience, 22% of them have 5-10 years experience and 16% have below 5 years of
experience.

36
 TABLE 4.6 INCOME LEVEL OF EMPLOYEES

Response No. of workers Percentage

5000-10000 10 20
10000-15000 20 40
15000-20000 10 20
20000-25000 5 10
Above 25000 5 10
Total 50 100

CHART 4.6 INCOME LEVEL OF EMPLOYEES

10% 20%
10%
5000-10000
10000-15000
20%
15000-20000
40% 20000-25000
Above 25000

INTERPRETATION

The above figure shows that 40% employees receive income of 10000-15000 and the
20% employees receive income of 5000-10000. 20% employees receive 15000-20000
as income and 10% receive of 20000-25000 while 10% of employees receive income
above 25000.

37
 TABLE 4.7 OPINION ABOUT EMPLOYER – EMPLOYEE
RELATIONSHIP

Response No. of workers Percentage

Highly Satisfied 15 30
Satisfied 25 50
Dissatisfied 10 20
Total 50 100

CHART 4.7 OPINION ABOUT EMPLOYER – EMPLOYEE

RELATIONSHIP

50%

30%

20%

Highly Satisfied Satisfied Dissatisfied

INTERPRETATION

From the above graph, 30% of the respondents’ state that they are highly satisfied
with the employer- employee relationship, but 50% are satisfied and 20% are
dissatisfied with the relationship.

38
 TABLE 4.8 AWARENESS REGARDING THE PERFORMANCE
APPRAISAL CONDUCTED IN THE COMPANY

Response No. of worker percentage

Yes 35 70

No 15 30

Total 50 100

CHART 4.8 AWARENESS REGARDING THE PERFORMANCE

APPRAISAL CONDUCTED IN THE COMPANY

70%

30%

YES NO

INTERPRETATION

From the above graph, 70% of the respondents’ state that they are aware of the
performance appraisal conducted by the company but 30% of the respondents are
not.

39
TABLE 4.9 NECESSITY OF APPRAISAL SYSTEM

Response No. of workers Percentage

Yes 45 90
No 5 10
Total 50 100

CHART 4.9 NECESSITY OF APPRAISAL SYSTEM

90

10

Yes No

INTERPRETATION

From the above graph, the respondents state that 90% of the respondents state that
there is necessity of appraisal system and 10% state that there is not.

40
 TABLE 4.10 MATCHING OF PERFORMANCE APPRAISAL AND
EMPLOYEES EXPECTATION

Response No. of workers Percentage

Never 5 10
Rarely 35 70

Every time 10 20
Total 50 100

CHART 4.10 MATCHING OF PERFORMANCE APPRAISAL AND

EMPLOYEES EXPECTATION

70%

20%

10%

Never Rarely Every time

INTERPRETATION

From the above graph, 10% of the respondents state that employees expectation
never match performance appraisal, 70% of them state that it rarely match and 20%
state that it match every time.

41
 TABLE 4.11 SATISFACTION LEVEL OF APPRAISAL SYSTEM

Response No .of workers Percentage

Low 13 26
Average 28 56
High 9 18
Total 50 100

CHART 4.11 SATISFACTION LEVEL OF APPRAISAL SYSTEM

56%

26%

18%

Low Average High

INTERPRETATION

From the graph, 20% of the respondents state that they have low satisfaction level
with appraisal system 56% state that they have average satisfaction and 18% of them
state that they are highly satisfied.

42
 TABLE 4.12 AUTHORITY CONDUCTING PERFORMANCE APPRAISAL

Response No. of workers Percentage

Supervisor 10 20
Department Head 5 10
HR Department 30 60
Others 5 10
Total 50 100

CHART 4.12 AUTHORITY CONDUCTING PERFORMANCE APPRAISAL

60%

20%

10% 10%

Supervisor Department Head HR Department Others

INTERPRETATION

From the graph, 20% of the respondents state that performance appraisal is
conducted by supervisor, 10% state that Department Head is doing the appraisal,
60% state that it is conducted by HR Department and 10% state that it is done by
others.

43
 TABLE 4.13 FREQUENCY OF PERFORMANCE APPRAISAL MEETING

Response No of workers Percentage

Always 0 0
Once 0 0
Twice 48 96
Thrice 2 4
Total 50 100

CHART 4.13 FREQUENCY OF PERFORMANCE APPRAISAL MEETING

54%

26%

12%
8%

HIGHLY AGREE AGREE DISAGREE STRONGLY DISAGREE

INTERPRETATION

From the graph, 54% of the respondents highly agree with the statement that the
skills and knowledge about the job improved after performance appraisal 26% agree,
12% disagree and 8% strongly disagree the statement

44
 TABLE 4.14 DEGREE OF RELATION BETWEEN PERFORMANCE
APPRAISAL AND ORGANISATIONAL GOAL

Response No.of workers Percentage

High 15 30
Average 25 50
Low 10 20
Total 50 100

CHART 4.14 DEGREE OF RELATION BETWEEN PERFORMANCE

APPRAISAL AND ORGANISATIONAL GOAL

50%

30%

20%

High Average Low

INTERPRETATION

From the graph 30% of the respondents state that the performance is highly related
with organizational goal 50% state that there is an average relationship and 20%
state that the relationship is very low.

45
 TABLE 4.15 WHETHER APPRAISAL LEADS TO IDENTIFICATION OF
HIDDEN TALENTS

Response No. of workers Percentage

Yes 48 96
No 2 4
Total 50 100

CHART 4.15 WHETHER APPRAISAL LEADS TO IDENTIFICATION OF

HIDDEN TALENTS

96%

4%

Yes No

INTERPRETATION

From the graph, 96% of the respondents’ state that the performance appraisal leads
to identification of hidden talents and 4% state that it is not.

46
 TABLE 4.16 CHANCE FOR BIAS IN PERFORMANCE APPRAISAL

Response No. of workers Percentage

Yes 5 10
No 45 90
Total 50 100

CHART 4.16 CHANCE FOR BIAS IN PERFORMANCE APPRAISAL

90%

10%

Yes No

INTERPRETATION

From the graph, 10% of the respondents’ state that there is chance for personal bias
in the appraisal and 90% state that there is not.

47
 TABLE 4.17 PERFORMANCE APPRAISAL IMPROVES SKILL

Response No. of workers Percentage

Yes 44 88
No 6 12
Total 50 100

CHART 4.17 PERFORMANCE APPRAISAL IMPROVES SKILL

88%

12%

Yes No

INTERPRETATION

From the graph, 88% of the respondents state that the performance appraisal
improves their skill and 12% state that it is not.

48
 TABLE 4.18 AREAS NEED FURTHER IMPROVEMENT

Response No. of workers Percentage

Standards 17 34
Monetary Incentives 28 56
Frequency of Appraisal 3 6
Appraiser 2 4
Total 50 100

CHART 4.18 AREAS NEED FURTHER IMPROVEMENT

56%

34%

6%
4%

Standards Monetary Incentives Frequency of Appraisal Appraiser

INTERPRETATION

From the graph, 34% of the respondents’ state that the standards used for
performance appraisal need to be improved 56% state that monetary incentives
should be revised and 6% and 4% of the respondents have the opinion to improve
the frequency of appraisal and appraiser respectively.

49
TABLE 4.19 PROVISION REGARDING PERFORMANCE LINKED BONUS
AND INCENTIVE

Response No. of workers Percentage

Yes 40 80
No 10 20
Total 50 100

CHART 4. 19 PROVISION REGARDING PERFORMANCE LINKED

BONUS AND INCENTIVE

80%

20%

Yes No

INTERPRETATION

From the graph, 80% of the respondents state that they receive bonus and incentives
according to their performance and 20% state that they are not linked.

50
 TABLE 4.20 GETTING FRIENDLY FEEDBACK

Response No. of workers Percentage

Yes 42 84
No 8 16
Total 50 100

CHART 4.20 GETTING FRIENDLY FEEDBACK

84%

16%

Yes No

INTERPRETATION

From the graph, 84% of the respondents state that they are getting friendly and
positive feedback after appraisal and 16% state that they are not getting it.

51
 TABLE 4.21 WHETHER PERFORMANCE APPRAISAL IMPROVES
PRODUCTIVITY

Response No of workers Percentage

Yes 48 96
No 2 4
Total 50 100

CHART 4.21 WHETHER PERFORMANCE APPRAISAL IMPROVES

PRODUCTIVITY

4%

96%

INTERPRETATION

From the graph, 96% of the respondents state that performance appraisal improves
productivity and 4% state that it is not.

52
 TABLE 4.22 INCREMENT IN SALARY AFTER PERFORMANCE
APPRAISAL

Response No of workers Percentage

Yes 10 20
No 40 80
Total 50 100

CHART 4.22 INCREMENT IN SALARY AFTER PERFORMANCE

APPRAISAL

Yes
20%

No
80%

INTERPRETATION

From the graph, 20% of the respondents state that there is increment in salary after
performance appraisal whereas 80% of the respondents state that there is not.

53
CORRELATION METHOD
Q1. Is there any relation between experience and income?

Income Years of experience

5000-10000 2
10000-15000 4
15000-20000 6
20000-25000 8
25000-30000 10

Solution:
By using Correlation method,

5000 - 10000 - 15000 - 20000- 25000 -

Income
10000 15000 20000 25000 30000
Mean (x) 7500 12500 17500 22500 27500
Years of
experience 2 4 6 8 10
(y)

x y x.y x2 y2
7500 2 7500 56250000 4
12500 4 25000 156250000 16
17500 6 52500 306250000 36
22500 8 90000 506250000 64
27500 10 137500 756250000 100
∑ 87500 30 307500 1781250000 220

54
INTERPRETATION
The Coefficient of correlation is “0.83” which is approximately equal to 1, That
means the Coefficient of correlation is Perfectly Positive Correlated
Therefore, the change in experience will effect in the income level.

55
WEIGHTED AVERAGE METHOD
Q2. Which is the areas that should be improved in the performance appraisal ?

The five advertisement techniques are:

 Standards
 Monetary incentives
 Frequency of appraisal
 Appraiser

Areas that should be improved

Weight Standards Methods of Monetary Frequency Appraiser Total

appraisal incentives of
appraisal

1 1 20 24 20 24 100
2
2 2 24 20 16 20 100
0
3 2 16 16 20 24 100
4
4 2 16 16 16 28 100
4
5 2 24 24 28 4 100
0
Total 1 10 100 100 100
0 0
0

Standards

= 32

56
Methods of appraisal

= 30

Monetary incentives

= 29.6

Frequency of appraisal

= 57.6

Appraiser

= 26.8

57
Ranking the promotional techniques on the basis of weighted average

Attribute Weighted average Rank

Standards 32 2
Methods of appraisal 30 3
Monetary incentives 29.6 4
Frequency of appraisal 57.6 1
Appraiser 26.8 5

INTREPRETATION

The highest rank is for the Standards. So this can be concluded that among the areas
that should be improved upon, Standards is having more influence than the other
areas.

58
 CHAPTER- 5
FINDINGS AND SUGGESTIONS

59
 FINDINGS
From the analysis and interpretation, the study reveals the following figures:

1. Majority of employees are of age below 40.

2. The organization is having more female workers.
3. Most of the employees are married.
4. Employees of the organization are educated.
5. Most of the employees are having experience above 5 years.
6. Most of the employees receive income within the range of 10000-15000.
7. Employees are satisfied with the employee – employer relation exists in the organization.
8. Employees are aware of the performance appraisal conducted by the organization.
9. Majority of employees are of the opinion that performance appraisal is necessary in the
organization.
10. Employees are of the opinion that performance appraisal is not matching their
expectation
11. Most of the employees are not satisfied with the appraisal system followed in the
organization.
12. HR Department and supervisors are mainly conducting the appraisal in the organization.
13. Appraisal meetings are conducted twice in a year.
14. The appraisal conducted by the organization is related to its organizational goals.
15. Appraisal leads to identification of hidden talents of the employees of the organization.
16. Most of the employees are of the opinion that there is no chance of personal bias in the
appraisal system followed by the organization.
17. Performance appraisal is helping to improve the skills of the employees.
18. Monetary Incentives and standards of appraisal are the areas which need further
improvement.
19. There are provisions for performance linked bonus and incentive system in the
organization.
20. Employees are getting positive and friendly feedback after appraisal.
21. Most of the employees are of the opinion that performance appraisal improves
productivity
22. Employees are not getting salary increment after performance appraisal.

60
 SUGGESTIONS
 Performance appraisal could be conducted by a person inside the organization and one who
is familiar with the employees.

 Suggestion boxes must be implemented, to collect suggestions of the employees.

 Monetary incentives and standard of appraisal should be revised.

 The appraiser must be familiarized with the employee’s job responsibilities and duties
before conducting performance appraisal.

 Appropriate and experienced appraiser can be appointed for effective performance

appraisal results.

 Employees should be given an increment in salary based on the appraisal.

 Employees having low performance could be called individually, encouraged and

monitored closely to make improvement

61
CONCLUSION

62
 CONCLUSION
Performance Appraisal means systematic evaluation of the personality and performance
of each employee by his superior or some other person trained in the techniques of merit rating. It
is a formal programe in the organization which is concerned with not only the contributions of the
members who form part of the organization but aims at spotting the potential also. It rates man and
not the job as it is concerned with assessing the abilities of the individuals.

This study analyses the performance appraisal system of the organization and also tries to
understand the satisfaction level of the appraisal system followed by the organization. The bonus
and incentive systems are linked with the performance appraisal. Performance appraisal improves
productivity of the organization and it also helps to identify the hidden talents. But it has not
reached up to the expectation of the employees. So organization should take necessary steps to
improve the same.

63
BIBLIOGRAPHY

64
 BIBILOGRAPHY
BOOKS

 DeCenzo David A. And Stephan P. Robbins, fundamentals of human resource

management, prentice Hall of India, New Delhi, 2004.
 Ivancevich,.J.M (2010). Human resource management 8thed Boston: Irwin
Mc. Graw Hill.
 Kothari C.R Research Methodology, New age International publisher, 2011.

WEBSITE

 http://en.m.wikipedia.org/performance-appraisal/
 https://www.your article library.com/performance-appraisal/

65
ANNEXURE

66
 QUESTIONNAIRE
1. Name:

2. Age: 20-30 30-40 40-50 Above 50

3. Gender: Male Female

4. Marital Status: Single Married

5.Educational Qualification: SSLC Higher Secondary

Graduation Post Graduation
Technical\ Professional

6. Experience (years): Below 5 5-10 10-15 Above 15

7. Income level: 5000-10000 10000-15000 15000-20000

20000-25000 Above 25000

8. What is your opinion about employee employer relationship?

Fully Satisfied Satisfied Dissatisfied

9. Are you aware about performance appraisal being conducted in TMM Hospital?

Yes No

10. What is your opinion about appraisal system? Is it necessary?

Yes No

11. How often does your performance assessment match to your expectations?

Never Rarely Every time.

12. What is your satisfaction level with the appraisal system?

Low Average High

13. Which personnel conduct your performance appraisal?

Supervisor Department Head HR department Others

67
14. How many performance appraisal meetings are scheduled in a year?

Always Once Twice Thrice

15. To what degree is performance appraisal related to organizational goals?

High Average Low

16. Does appraisal lead to identification of hidden talents?

Yes No

17. Do you think personal bias creeps in while appraising an individual?

Yes No

18. Does performance appraisal helps in polishing your skills in area of your
performance?

Yes No

19. What are the areas that should be improved upon?

Standards Monetary Incentives

Frequency of Appraisal Appraiser

20. Do you think the bonus and incentive is linked to the performances of
employees?
Yes No

21. Do you think performance appraisal gives feedback in friendly and positive
manner?

Yes No

22. Does performance appraisal helps in improving productivity of employees?

Yes No

23. Do you receive any increment in salary after performance appraisal?

Yes No

68