Rishi Project Final

A STUDY ON PERFORMANCE APPRAISAL SYSTEM AT BPL MEDICAL TECHNOLOGIES
1.1 BACKGROUD OF THE STUDY

Why Performance Appraisal?
Today’s working climate demands a great deal of commitment and effort from employees, who
in turn naturally expect a great deal more from their employers. Performance appraisal is designed
to maximize effectiveness by bringing participation to more individual level in that it provides a
forum for consultation about standards of work, potential, aspirations and concerns. It is an
opportunity for employees to have significantly greater influence upon the quality of their working
lives. In these time of emphasis on “quality”, there is a natural equation: better quality goods and
services from employees who enjoy better quality “goods and services” from their employers.
Performance appraisal must be seen as an intrinsic part of a manager’s responsibility and not an
unwelcome and time-consuming addition to them. It is about improving performance and ultimate
effectiveness.
Performance appraisal is a systematic means of ensuring that managers and their staff meet
regularly to discuss post and present performance issues and to agree what future is appropriate on
both sides.
This meeting should be based on clear and mutual understanding of the job in question and the
standards and outcomes, which are a part of it. In normal circumstances, employees should be
appraised by their immediate managers on one to one basis. Often the distinction between
performance and appraising is not made. Assessment concerns itself only with the past and the
present. The staff is being appraised when they are encouraged to look ahead to improve
effectiveness, utilize strengths, redress weaknesses and examine how potentials and aspirations
should match up.
It should also be understood that pushing a previously prepared report across and desk cursorily
inviting comments, and expecting it to be neatly signed by the employee is not appraisal- this is
merely a from filling exercise which achieves little in terms of giving staff any positive guidance
and motivation.
THE APPRAISAL OF PERFORMANCE SHOULD BE GEARDED TO:
➢ Improving the ability of the jobholder;
➢ Identifying obstacles which are restricting performance
➢ Agreeing a plan of action, that will lead to improved performance.
MOUNT ZION SCHOOL OF BUSSINESS MANAGEMENT KADAMANITTA 1

It is widely accepted that the most important factor in organization effectiveness is the
effectiveness of the individuals who make up the organization becomes more effective, then the
organization itself will become more effective. The task of reviewing situations and improving
individual performance must therefore be a key task for all managers.
For appraisal to be effective, which means producing results for the company, each manager has
to develop and apply the skills of appraisal
These are: -
➢ Setting standards on the performance required, which will contribute to the achievement
of specific objectives
➢ Monitoring performance in cost-effective manner, to ensure that previously agreed

performance standards are actually being achieved on an ongoing basis
➢ Analysing any difference between actual performance and the required performance to
establish the real cause of a shortfall rather than assume the fault to be in the jobholder.
➢ Interviewing having a discussion with the jobholder to verify the true cause of a shortfall,
a developing a plan of action, which will provide the performance, required
Appraisal can then become a way of life, not concerned simply with the regulation of rewards and
the identification of potential, but concerned with improving the performance of the company. The
benefits of appraisal in these terms are immediate and accrue to the appraising manager, the
subordinate manager/employee, and to the company as a whole.
SWOT ANALYSIS
STRENGTHS
▪ Efficient Management
▪ ISO 9001 and 2000 certification
▪ Good reputation and brand image
▪ Good Quality policy
▪ Availability of natural rubber
▪ Customer satisfaction
▪ Skilled and efficient work force

▪ Company eco-friendly and socially committed
▪ No political influence from outside
WEAKNESS
▪ High cost of production
▪ Lack of proper marketing
▪ Unequal promotion policy of management
▪ Increase in quality should decrease productivity
OPPORTUNITIES
▪ High demand of rubber product
▪ Growing market
▪ Geographical advantage
▪ Globalisation
▪ Product diversion
▪ Export opportunities
THREATS
▪ Climate change is affected on the production
▪ Depression in rubber market
▪ Increased use of synthetic rubber
▪ Heavy competition in the market
▪ Diseases in natural rubber plantation
1.2 NEED OF THE STUDY
Appraising the performance of individuals, groups and organizations is a common practice of all
societies. While in some instances these appraisal processes are structured and formally sanctioned,
in other instance they are an informal and integral part of daily activities. Consciously of

unconsciously evaluate our own actions from time to time. In social interactions, performance is
conducted a systematic and planned manner to achieve widespread popularity in recent years.
Performance appraisal is essential to understand and improve the employee’s performance through
HRD. In fact, performance appraisal is the basis for HRD. It was viewed performance appraisal
was useful to decide upon employee promotion/transfer salary determination and the like. But the
recent developments in human resources management indicate that performance appraisal is the
basis for employee development. Performance appraisal indicates the level of desired performance
level, level of actual performance and the gap between these two. This gap should be bridged
through human resources development techniques like training executive development etc.
According to this company there is always a predetermined performance appraisal as per the
government rules and regulations. Hence there would be a scope for giving few suggestions as per
my knowledge to improve the performance appraisal system which was quite essential for the
better performance of the employees.
1.3 STATEMENT OF THE PROBLEM
Much of literature dealing with Human Resource Management and its issues recognize the
importance of appraisal system which occurs in the organisation. All organization faces the
problem of directing the energies of their staff to the task of achieving business goals and the
objectives. In doing so, organisation need to devise means to influence and channel the behaviours
of their employees so as to optimize their contributions. Performance appraisals constitute one of
the major management tools employed in this process.
The continuous evolution of organisation towards the change creates a great impact in the life of
the business still, the business leaders are relying on the capacity of the people and their
performance towards their job and roles in the organization. Whether a profitable or non-profitable
organization, the people has been essential resources in the organization. Various strategies had
been effectively used for the employee according to their different needs and areas that needs to
sustain.
However, there is a little attention given in enhancing the employee performance appraisal system.
The present study was undertaken to clarify certain questions related to the care phase of
performance appraisal through regular assessment of progress toward goals focuses the attention
and efforts of an employee or a team.

1.5 SCOPE OF THE STUDY
➢ This study provides appraisal feedback to employees and thereby serve as vehicles for
personal and career development and allow the management to take effective decision
against drawbacks for the well-being of the employee’s development.
➢ To improve employees, work performance by helping them realize and use their full
potential in carrying out their firm’s mission.
➢ The main aim of the study is to find out the effectiveness of performance appraisal &
development programme conducted at “Rehabilitation plantation Ltd”.
➢ This study helps to known the level of importance of appraisal system.
➢ The payroll and compensation decision, training and development needs, promotion,
demotions transfer including job analysis and providing superior support, assistance and
counselling.
1.4 OBJECTIVES OF THE STUDY
➢ To identify the actual performance of the employees and performance standards used in
performance appraisal program (opinion, satisfaction, benefit, outcome, etc.)
➢ To create and maintain a satisfactory level of performance.
➢ To identify the awareness level of performance appraisal technique among the employees.
➢ To anal.ysis the records in order to determine compensation packages wage structure,

salaries raises etc.
➢ To identify the strength weakness of employee to place right men on right job.
➢ Collect feedback from the employees regarding their performance and related status.
➢ To review and retain the promotional and other training programmers.
➢ It considers both the job performance as well as the personal qualities of an employee.
1.6 LIMITATIONS OF THE STUDY
As the study revolves around the performance appraisal of human resources aspects the overall
organization performance cannot be ascertained. In spite of giving honest and sincere efforts there
are several limitations, which are as follows:

➢ The period of study is only for about 1 month which is major constraint.
➢ The perception bias or attitude of the respondents may also act as hurdles to the study.
➢ The study is only confined to performance appraisal.
➢ The sample size taken for the research is small due to the constraint of time.
1.7 ORGANIZATION OF THE REPORT
Project is presented in eight chapters.

• The first chapter includes background of the study, need and significance of the study,
statement of the problem, and objectives of, scope and limitations of the study.
• The second chapter includes profiles. Profiles like Industry profile, Company profile,
Product profile.
• The chapter third conceptualizes the literature review. Literature review is secondary
sources and does not report new or original experiment work. This will give a brief description
about the topic.
• The fourth chapter is theoretical framework. The theoretical framework is a collection of
interrelated concepts, like a theory and all concepts related to the topic.
The information’s were collected from various texts, books and from the internet.
• The fifth chapter research methodology includes objectives, hypothesis, research design,
source of data, primary and secondary data, population and sample design, sampling method,
method of data collection, drafting a questionnaire, pilot survey, and data analysis techniques.
• The sixth chapter is analysis of the collected data were made by using three tools percent-
age analysis, chi-square test, and anova.
• The chapter seventh conceptualizes the findings that arise from the data analysis. Here get
findings from percentage analysis, chi-square test and anova.
• the chapter eighth includes the suggestion from the side of the researcher the organization
should consider

2.1 INDUSTRY PTOFILE
Medical technology extends and improves life, alleviates pain, injury and handicap. Incessant med-
ical technology innovation enhances the quality and effectiveness of care. Billions of patients
worldwide depend on medical technology at home, at the doctor’s, at hospital and in nursing
homes.
WHAT IS MEDICAL TECHNOLOGY?
There are varied definitions of what constitutes ‘medical technology’. For the purpose of this re-
port, the term medical technology encompasses a wide range of healthcare products (devices,
equipments as well as consumables/ supplies) that are intended by its manu- facturer to be used
specifically for diagnostic and/or therapeutic purposes. It encompasses any instrument, apparatus,
appliance, implant, in vitro reagent, software, material or other article, which is used, alone or in
combination, for the following purposes:
• diagnosis, prevention, monitoring, treatment or alleviation of disease
• diagnosis, monitoring, treatment, alleviation of or compensation for an injury
• investigation, replacement, modification or support of the anatomy or of a physio-
logical process
• supporting or sustaining life
• control of conception
• disinfection of medical devices
• providing information for medical or diagnostic purposes
by means of in vitro examination of specimens derived from the human body and, which does not
achieve its primary intended action in or on the human body by pharmacological, immunological
or metabolic means, but which may be assisted in its intended function by such means.
MEDICAL TECHNOLOGY IMPROVES HEALTH OUTCOMES
Medical technology plays a strategic role in fostering the change of health care delivery towards
better health outcomes. According to EUCOMED (the European medical technology industry as-
sociation) “Medical technology extends and improves life. It alleviates pain, injury and handicap.
Its role in healthcare is essential. Incessant medical technology innovation enhances the quality
and effectiveness of care. Billions of patients worldwide depend on medical technology at home,
at the doctor’s, at hospital and in nursing homes. Wheelchairs, pacemakers, orthopaedic shoes,

specta- cles and contact lenses, insulin pens, hip prostheses, condoms, oxygen masks, dental floss,
MRI scanners, pregnancy tests, surgical instruments, bandages, syringes, life-support machines:
more than 500,000 products (10,000 generic groups) are available today.”
With the convergence of many scientific and technology breakthroughs, the pace of medical in-
vention is accelerating, resulting in better clinical outcomes, less invasive procedures and shorter
recovery times, and thus improving overall health of people. Heart disease and its consequence,
heart attack, is a good example of how new technology has changed the treatment and prevention
of a disease over time
NEED FOR MEDICAL TECHNOLOGY IN INDIA
There can be no better example than India to illustrate the need for medical technology for improv-
ing healthcare delivery. In the second most populous country of the world, the supply of
healthcare services falls significantly short of the demand. Existing health care delivery mecha-
nisms are inadequate to meet the ever- growing needs of the Indian population, especially in
smaller towns/ rural areas. The limited healthcare facilities available in the country are skewed
more in favour of the affluent category of population. At the high end, India has world-class doc-
tors, clinics and technologies, and attracts international medical tourists in growing numbers. How-
ever, even today, the majority of India’s population cannot afford anything better than the most
basic healthcare. Low health insurance coverage (estimated at less than 10% of population) makes
matters even worse. Accessibility is restricted by shortage of healthcare facilities and professionals.
For every 10,000 Indians, there are 6 doctors while China has 20 doctors for every 10,000 people,
Australia has 249, UK has 166 and US has 548. Further, while majority of the population resides
in rural areas, doctors and hospitals are largely concentrated in cities. Poor healthcare infrastruc-
ture, along with a large population and high poverty levels has resulted in a dismal status of peo-
ple’s health. This is illustrated by the following facts:
• Of the 536,000 women who died during pregnancy
or after childbirth in 2005 globally, India accounted for 117,000 (or 22%).
• IMR (Infant Mortality Rate) for India is 58 per 1000 births, which is more than double that of
China (23 per 1000 births) and even higher than Bangladesh (54 per 1000 births).
• India has the highest burden of communicable diseases in the world, with malaria and tuber-
culosis among the leading causes of death.
• Growing non-communicable diseases (NCDs) - highest number of diabetics in the world.

Good quality private healthcare is out of reach for majority of India’s people. Government support/
subsidies alone are not enough to cater to the healthcare needs of this segment of the population.
There is a need to use medical technology effectively to address the yawning gap between demand
and supply of healthcare services in India. Innovative products and business models are needed to
make healthcare affordable and accessible to a larger percentage of the population.
2.2 COMPANY PROFILE
BPL Medical Technologies, the Indian multinational, spearheads pioneering efforts in medical
technology and innovation, keeping with legacy since 1967. Synonymous with Trust, their prod-
ucts and systems are certified by national and international quality agencies. With their commit-
ment to making in India, they help us experience great quality at unparalleled value. Their high
standards of product performance has made them the No.1 choice of hospitals, clinics and prac-
tising physicians across the country. BPL Medical Technologies Private Limited is a trusted com-
pany that provides reliable products and dependable service to its customers. Their products man-
ufactured in an 13485: 2016 certified facility conform to global standards of quality assurance and
best practices. They were recently conferred the prestigious Frost & Sullivan 'Customer Value
Leadership Award 2016' in the India medical device technology category. The organisation has
also being conferred an award for 'ET Best Healthcare Brand 2016'. In addition, they have also
been recognised with 6 awards for Medical technology innovation. The company was earlier
awarded the prestigious Frost & Sullivan Best Practices Awards in 2011 for 'Market Share Lead-
ership in the Value Segment of ECG devices'.
To further strengthen their commitment to Anaesthesia and Critical care, they acquired UK based
Penlon Ltd. in September 2015, a global leader in the segment. Their collaboration with the best
brains across the world and their high capacity manufacturing facilities provide their customers
with latest technologies at affordable prices. They will continue to introduce innovative products
and expand their customer support network to enhance the productivity of healthcare. With 14
offices across India and customer care centres with team of over 600 service personnel located

even in the farthest corners of the country they are committed to service support- They are always
within our reach.
VISION
To be the preferred and trusted medical technology company, setting the highest standards on
products and services, delivering affordable solutions to the last mile in the markets they serve,
with commitment to customer centricity and ethical business practices.
VALUES
Their values form the basis of their culture and guide us in our everyday actions. They are the
pillars on which their vision stands. Their purpose to ‘help save lives’ is based on the fundamental
premise that ‘BMTPL ‘CARES’.
CUSTOMER FOCUS
They believe in upholding their commitments, they strive for the best in quality in whatever they
do, they drive on innovation, all of it, to create value for their customers - internal & external, in
their pledge towards Customer Delight.
ACCOUNTABILITY
They are all Champions of their Company, driven by the same purpose to ‘Help Save Lives’, from
taking ownership, to remaining committed from start to finish, in doing what is right, not just what
is expected, and in going beyond, towards making a positive impact on everything they do.
RESPECT
They believe in listening, sharing, and being open to people, valuing their individual strengths and
leveraging them. They believe in empowering their people with the right environment, efficient
tools and opportune learning platforms towards nurturing a passionate team who in-turn respect
the organisation & its goals.
ETHICS
They uphold the ethics & values of BMTPL in every action and decision of theirs. They pursue
their goals with honour, integrity, trust, and fairness towards our employees, their customers, the
business, and our Country.
SPEED

Challenging the status quo, racing against competition, by constantly striving for excellence, find-
ing & discovering fast & smart solutions, towards continuous improvements and re-engineering
self. They, therefore, are an organisation driven by SPEED, of thought, of creation, of service, of
delivering on our commitments & exceeding expectations.
MANUFACTURING FACILITIES
BPL is dedicated to the pursuit of excellence in production. They have been delivering cutting edge
technologies adhering to Quality Management Systems. Their ISO 13485:2016 certified manufac-
turing facilities in India, have been ‘Making in India’, since 1967.Their collaboration with the best
brands across the world and their high-quality manufacturing facilities provide their customers the
latest technology at affordable prices.
QUALITY
They are focussed on delivering products and services that consistently meet and exceed our cus-
tomer’s expectations in quality, reliability, safety and trust, by implementing and practicing an
effective quality management system. They are an ISO 13485:2016 Quality Management Systems
certified Company. Most of their products are certified for European Safety Standard CE.

2.3 PRODUCT PROFILE
ECG
First Indian company to Manufacture ECG. Today, with continued innovation in cardiology port-
folio to be a leader, BPL Offers Resting ECG, Advanced ECG solutions, Stress Test Systems, ECG
Holter, Mobile ECG with Glucometer (Life Phone Plus).
RESTING ECG
BPL's first ECG machine was introduced in 1967 and now BPL has foray of devices from Single-
Channel to 12-Channel ECG. Mastering excellence in Design & Manufacturing, BPL's ECG ma-
chines have been a synonym for reliability.
STRESS TEST SYSTEM
Ensuring enhanced clinical workflow with easy and accurate access of cardiac activity. Advanced
HES Algorithm with dynatrac Neo software enables Arrhythmia analysis and Motion artefact re-
duction in stress ECG.
SunTech's Automated Stress BP Monitor provide accurate, reliable BP measurements, relieving

you of the stress of taking manual BP during testing.

LIFEPHONE PLUS
With technology enabling healthcare, quality care can be delivered at the very end. BPL's range of
connected health solutions communicate to a mobile/web app and help monitor your health. Made
possible through bluetooth, the app keeps track of the trend and stores history for you to retrieve
and share with your loved ones. Our award winning mHealth solutions help you monitor ECG,
Blood Glucose, SpO2, fitness levels, heart rate and calories burnt.

3. LITERATURE REVIEW
• ALFORD AND BEATTY say, “it is the evaluation or appraisal of the relative worth to
the company of man’s service on the job”.
• FLIPPER says, “Performance Appraisal is a systematic, periodic and so far, as humanly

possible and impartial rating of employees’ excellence of matters pertaining to his
potentialities for a better job”. Performance appraisal has been defined in many ways. The
simplest way to understand the meaning of performance appraisal is as follows: “A regular
and continuous evaluation of the quality, quantity and style of the performance along with
the assessment of the factors influencing the performance and behaviour of an individual’s
called performance appraisal”.
• Cleveland, Murphy, and Williams (1989) argued that there is a relationship between
organizational characteristics and the uses of a performance appraisal system. Stonich
(1984) also argued that performance measurement in an organization should be in tune with
its structure and culture. Since the nature of the enterprises in which each industry is
engaged varies, its organizational type, business policy, internal and external environment
are also usually different. The purpose of this study is to conduct a direct comparative
analysis of performance appraisal system in the service and manufacturing industries.
• A part from organizational control, Ilgen, Barnes-Farrell, and Mckellin (1993) concluded
from their extensive review of the literature since the 1980s about performance appraisal,
that there are four aspects that need to be considered. In practice performance appraisal
systems cover a wide range of these aspects, and seldom have exactly the same nature and
functions. In order to integrate finding in the area, Chu (2002) proposed a comprehensive
framework including six categories, namely, appraisal purposes, appraises personnel,
appraisal criteria, appraisal methods, appraisal timings, and appraisal feedback. This study
will adopt this framework to compare performance appraisal systems in the service and
manufacturing industries.
• According to Brumbrach (1988, cited in Armstrong, 2000) “performance can be actions

as well as their consequences. Behaviours originate from a performer and convert
performance from a concept to an act. Not just the instruments for results, behaviours are
also outcome in their own right- the product of mental and physical effort applied to tasks-
and can be judged apart from results”. Above all, performance should be about the decision
and action taken with available information at any existing situation.

• Noe et al (2006) define performance management as “the process through which managers
ensure that employees’ activities and outputs are congruent with the organization’s goals”.
The concept of performance management has contributed a lot in the development Human
Resources Management in recent years. Performance management is widely being used in
organization so as to obtain the best results by trying to improve performance of the
workforce. Goals and standards are being planned well beforehand in order to get satisfied
outcomes.
• Grote (2002) describes performance appraisal as a formal management tool that helps
evaluated the performance quality of an employee. Schneier and Beatty as cited in Patterson
(1987) define it as a process which apart from evaluating also identifies and develops
human performance.
• According to Karol (1996) performance appraisal includes a communication event

planned between a manager and an employee specifically for the purpose of assessing that
employee’s past job performance and discussing areas for future improvement.
• 360 Degree Feedback is a process in which employees receive private and anonymous
feedback from the people who work around them. Kettley (1997) says that when an
individual receives feedback from different sources of the organization, including peers,
subordinate staff, customers and themselves, the process is called 360-degree feedback or
appraisal. The employee is then assessed using those received feedback.

4. THEORETICAL FRAMEWORK
4.1 CONCEPT OF PERFORMANCE APPRAISAL SYSTEM
Introduction
Appraising the performance of individuals, groups and organizations is a common practice of all
societies. While in some instances these appraisal processes are structured and formally sanctioned,
in other instances they are an informal and integral part of daily activities. Thus, teachers evaluate
the performance of students, bankers evaluate the performance of creditors, parents evaluate the
behavior of their children, and all of us, consciously or unconsciously evaluate our “own actions
from time to time. In social interactions, performance is conducted in a systematic and planned
manner to achieve widespread popularity in recent years.
Meaning:
Performance appraisal is a method of evaluating the behavior of employees in the work spot,
normally including both the quantitative and qualitative aspects of hob performance. Performance
here 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. Often the term is confused with
effort, but performance is always measured in terms of results and not efforts. Some of the
important features of performance appraisal given, they are:
1. Performance appraisal is the systematic description of an employee’s job-relevant strengths

and weaknesses.
2. The basic purpose is to find out how well the employees is performing the job establish a
plan of improvement.
3. Appraisal are arranged periodically according to a definite plan.
4. Performance appraisal is not job evaluation. Performance appraisal refers to how well
someone is doing the assigned job. Job evaluation determines how much a job is worth to
the organization and, therefore, what range of pay should be assigned to the job.
Use of Performance Appraisal:
➢ Performance appraisal is helpful in assessing a firm’s human resources data must be

available that describe the pro-mobility and potential of all employees.

➢ A well-designed appraisal system provides a profile of the organization’s human resources

strength and weaknesses to support this effort.
➢ Performance evaluation ratings may be helpful in predicting the performance of job

applicants.
➢ Performance appraisal is useful in career planning and development.
➢ Performance appraisal results provide a basis for rational decisions regarding compensation
programmers.
➢ Performance appraisal data are also frequently used for decisions in several areas of internal
employee relations, including promotion, demotion, termination, lay-off and transfer.
➢ Performance appraisal is useful in assessment of employee potential.
➢ Performance appraisal can be used to determine whether HR programmers such as

selection, training, and transfers have been effective or not.
Objectives of Performance Appraisal:
Performance appraisal aims at attaining the different objectives, they are
1. To create and maintain a satisfactory level of performance.
2. To contribute to the employee growth and development through training self and
management development programmers.
3. To help the superior to have a proper understanding about their subordinates
4. To facilitate fair and equitable compensation based on performance.
5. To facilitate for testing and validating selection tests, interview techniques through
comparing their scores with performance appraisal ranks.
6. To providing information for making decisions regarding lay off, retrenchment etc.
7. To ensure organizational effectiveness through correcting employee for standard and

improve performance and suggesting the change in employee behavior.

4.2 SEVERAL WAYS OF PERFORMANCE APPRAISAL
Performance appraisals are useful for the organizations in several ways including:
➢ Professional development (identifying strengths and weaknesses in performance,

implementing strategies for improvement)
➢ Determining organizational training and development needs.
➢ Making and validating administrative decision (e.g., pay, promotion, placement, and
termination)
➢ Identifying systemic factors that are barriers
Appraisal Process
Each step in the process is crucial and is arranged logically. Many organizations make every effort
to approximate the ideal process, resulting in first-rate appraisal systems. Unfortunately, many
others fail to consider one or more of the steps and, therefore have less effective appraisal system.
Objectives of
Performance appraisal
Establish job
expectations
Design an appraisal
programme
Appraise
performance
Performance
Interview
Use appraisal data for

Appropriate purpose

1. Objectives of Appraisal:
Objectives of appraisal include effecting promotions and transfers, assessing training

needs, awarding pay increases, and the like. The emphasis in all these is to correct the
problems.
2. Establish job expectations:
The second step in the appraisal process is to expectations. This includes informing the
employee what is expected of him or her on the job.
3. Design appraisal program;
Designing an appraisal program possess several questions which need answers. They are
(i) Formal versus informal appraisal; (ii) Whose performance is to be assessed? (iii) Who
are the raters? (iv) What problems are encountered? (v) How to solve the problems? (vi)
What should be evaluated? (vii) When to evaluate? (viii) What methods of appraisal are to
be used?
4. Performance Interview:
Performance interview is another step in the appraisal process. Once appraisal has been
made of employees, the raters should discuss and review the performance with the rates, so
that they will receive feedback about where they stand in the eyes of superiors.
5. Use of appraisal data:
The final step in the evaluation process is the use of evaluation data. The data and
information generated through performance evaluation must be used by the HR department.
4.3 METHODS OF PERFORMANCE APPRAISAL
With the evaluation and development of appraisal system a number of methods or techniques of
performance appraisal have been developed. The importance among them.
Traditional Methods
1. Graphic Rating Scales:
Graphic rating scales compare individual performance to an absolute standard. In this

method, judgments about performance are recorded on a scale. This is the oldest and widely
used technique. This method is also known as linear rating scale. The appraisers are
supplied with printed forms, one for each employee. These forms contain a number of

objectives, behavior and trait- based qualities and characters to be rated like quality and
volume of work, job knowledge, dependability, initiative, attitude etc., in the case of
workers and analytical ability, creative ability, initiative, leadership qualities, emotional
stability in the case of managerial personnel. These forms contain rating of scales. Rating
scales are of two types, viz., continuous rating scales and discontinuous ratings the point to
each degree. The points given by the rates know performance regarding each character. The
points given by the rater to each character are added up to find out the overall performance.
Employees are ranked on the basis of total points assigned to each one of them.
One reason for the popularity of the rating scales is its simplicity, which permits many
employees to quickly evaluated. Such scales have relatively low
Design cost and high in case of administration. They can easily pinpoint significant
dimensions of the job. The major drawback to these scales is their subjectivity and low
reliability. Another limitation is that the descriptive words often used in such lies may have
different meanings to different raters.
2. Ranking Method:
Under this method the employees are ranked from best to worst on some characteristics.
The rater first the employee with the highest performance and the employees with the
lowest performance in that particular job category and rates the former as the best and the
later as the poorest. Then the rater selects the next highest and next lowest and so on until
he rates all the employees in that group. Ranking can be relatively easy and inexpensive,
but its reliability and validity may be open to doubt. It may be affected by rater bias or
varying performance standards. Ranking also means that somebody would always be in the
backbench. It is possible that the low ranked individual in one group may turnout to be
superstar in another group. One important limitation of the ranking method is that size of
the different between individuals is not well defined. For instance, there may be little
difference between those ranks third and fourth.
3. Paired Comparison Method
This method is relatively simple. Under this method, the appraiser ranks the employees by
comparing on employee with all other employees in the group, one at a time. As illustrated,
this method results in each employee being given a positive comparison total and a certain
percentage total positive evaluation.

4. Forced Distribution Method:
The rater may rate his employees at the higher or at the lower end of the scale under the
earlier methods. Forced distribution method is developed to prevent the raters from rating
too high or too low. Under this method, the rater after assigning the points to the
performance of each employee has to distribute his ratings in a pattern to conform to normal
frequency distribution. Thus, similar to the ranking technique, forced distribution. This
method eliminates central and leniency biases. However, in this method employees are
placed in certain ranked categories but not ranked within the categories. Quite often work
groups do not reflect a normal distribution or individual performance. This method is based
on the questionable assumption, as group of employees will have the same distribution of
excellent, average and poor performers. If one department has all outstanding employees,
the supervisor would find it extremely difficult to decide who should be placed in the lower
categories. Difficulties can also arise when the raters most explain to the employee why he
was placed in one grouping and others were placed in higher groupings.
5. Checklist Methods:
The checklist is a simple rating technique in which the supervisor is given a list of statement
or words and asked to check statements representing the characteristics and performance
of each employee. These are three type of checklist methods, viz, simple checklist,
weighted checklist and forced choice meth
6. Critical Incident Method:
Employees are rated discontinuously, i.e., once in a year or six months under the earlier
methods. The performance rated may not reflect real and overall performance, as the rate
would be serious about appraisal method, i.e., critical incident method has been developed.
Under this method, the supervisor continuously records the critical incidents of the
employee performance or behaviour relating to all characteristics (both positive and
negative) in a specially designed notebook. The supervisor rates the performance
of his subordinates on the basis of notes taken by him. Since the critical incident method
does not necessarily have to be a separate rating system, it can be fruitfully employed as
documentation of the reasons why an employee was rated in a certain way.
The critical incident method has the advantage of being objective because
the rate considers the records of performance rather than the subjective points of opinion.

7. Essay or Free from Appraisal:
This method requires the manager to write a short essay describing each
employee's performance during the rating period. This format emphasizes evaluation of
overall performance, based on strengths weakness of employee performance, rather than
specific job dimensions. By asking supervisors to enumerate specific examples of
employee behaviour, the essay technique minimizes supervisory bias and halo effect.
8. Group Appraisal:
Under this method, an employee is appraised by a group of appraisers. This group consists
of the immediate supervisor of the employee, to other supervisors who have close contact
with employee's work, manager or head of the department and consultants. The head of the
department or manager may be the chairman of the group and the immediate supervisor
may act as the coordinator for the group activities. This group uses any one or multiple
techniques discussed earlier. The immediate supervisor enlightens others members about
the job characters,
demands, standards of performance etc. Then the group appraises the performance of thee
mployee, compares the actual performance with standards, find out the deviations,
discusses the reasons therefore, suggests ways for improvement of performance, prepares
action plans, studies the need for change in job analysis and standards and recommends
change, it necessary. This method is widely used for purpose of promotion, demotion and
retrenchment appraisal.
9. Confidential Report:
Assessing the employee's performance confidentially is a traditional method of performan

ce appraisal. Under this method, superior appraises the performance of hissubordinates ba
sed on his observations, judgments and institutions. The superior keeps his judgment and
report confidentially. In other words, the superior does not allow the
employeetoknow the report and his performance. Superior writes the report about his sub
ordinates, Weakness, intelligence, attitude to work, sincerity, commitment, pality,
attendance, conduct, character, friendliness, etc, though confidential report is a traditional
method, most of the public sector organizations still follow this method in appraising the
employee's performance. This method suffers from a number of limitations.

Modern Methods
1. Behaviourally Anchored Rating Scales (BARS):
The Behaviourally Anchored Rating Scales (BARS) method combines elements of the
traditional rating scales and critical incidents methods. Using BARS, job behaviours from
effective and ineffective behaviors are described more objectively. The method employsi
ndividuals who are familiar with a particular job to identify its major components. They
then rank and validate specific behaviours for each of the components. BARS require
considerable employee participation; its acceptance by both supervisors and their
subordinates may be greater. Proponents of BARS also claim that such a system
differentiates among behaviour, performance and results, and consequently is able to
provide a basis for setting developmental goals for the employee. Because it is job - specific
and identities observable and measurable behaviour, it is more reliable and valid method
for performance appraisal.
2. Assessment Centre:
This method of appraising was first applied in German Army in 1930. Later business and
industrial houses started using this method. This is not a technique of performance appraisal
by itself. In fact, it is a system or organization, where assessment is done by several
individuals and also by various experts by using various techniques. In this approach
individual from various departments are brought together to spend two or three days
working on an individual or a group assignment similar to the ones they'd be handling when
promoted. All assess get an equal opportunity to show their talents and capabilities and
secure promotion based on merit. An assessment model is shown below. Human Resource
Accounting deals with cost of and contribution of human resource to the organization. Cost
of the employee includes cost of manpower planning, recruitment, selection, induction,
placement, training, development, wages and benefits etc. employee contribution is the
money value of employee service which can be measured by labour productivity or value-
added by human resources
3. Management by objectives:
Although the concept or management by objectives was advanced by Peter F. Duckers

way back in 1954, it was described only recently as 'large range' in performance appraisal
. Refinements brought out by George Odone, Valentines, Humble and others have enriched
the concept and made it more acceptable all over the globe as an MBO in their work

settings. Some of the companies which implemented MBO reported excellent results,
others disappointments, and many in decisions. Started briefly, MBO is a process whereby
the superiors and subordinate managers of an organization jointly identify its common
goals, define each individual's major areas of responsibility in terms of results excepted of
him, and use these measures of guides
for operating the unit and assessing the contribution of its members. Generally, the unit an
dassessing the contribution of its members. Generally, the 1VIBO is undertaken along the
following lines.
• The subordinate and superior jointly determine goals to be accomplished during

theappraisal period and what level of performance is necessary for the subordinate
to satisfactory achieve specific goals
• During the appraisal period the superior and subordinate update and later goals as
necessary due to changes in the business environment.
4. Psychological Appraisal:
Psychological appraisal is conducted to assess the employee potential, Psychological

appraisal consist of
(a)In - depth interviews
(b)Psychological tests
(c)Consultations and discussions with the employee
(d)Discussions with the superior's sub-ordinates and peers
(e) Reviews of others evaluations.
Evaluation is conducted in the areas of:
(a) employee's intellectual abilities,
(b)Emotional stability,
(c) motivational responses,
(d) sociability,
(e) employee’s ability to comprehend the vents, and
(f) ability to foresee the future.

5. Counselling:
After the performance of the employee is appraised, the superior should inform the
employee about the level of his performance, the reason for the same, need for and the
methods of improving the performance. The superior should counsel the employee about
his performance and the methods of improving counselling is a planned, systematic
intervention in the life of an individual who is capable of choosing the goal and the direction
of his development. Thus, the purpose of counselling is to help the employee aware of his
own performance, his strengths and weakness, opportunities availabilities available for
performance counselling can be done in the form of performance interview by the superior.
The Post Appraisal Interview:
The post appraisal interview has been considered by most of the organizations, as well as
employees, as the most essential part of appraisal system. This interview provides the employee
the feedback information, and an opportunity to appraiser to explain the employee his rating, the
traits and behaviour he has taken into consideration for appraisal etc. It also gives the opportunity
to employee to explain his views about the rates, standards or goals, rating scale, internal and
external environment causes for low level of performance, his resources responsible for
performance etc. further it helps both the parties to review standards, set new standards based on
the reality factors, and helps the appraiser to offer his suggestions, help, guide and coach the
employee for his advancement. Thus, the post appraisal interview is designed to achieve
the following objectives.
1. To let employees, know where they stand.
2. To help employees do a better job by clarifying what is expected of them;
3. To plan opportunities for development and growth;
4. To strengthen the superior subordinate working relationship by developing a mutual

agreement of goals;
5. To provide an opportunity for employees to experience themselves on performance related

issues.
Relating Performance Appraisal to Rewarding:
Management should recognize and performance. The forms of recognizing and

rewarding performance include: (a) Private and public praise, (b) Written commendation, (c) pub
lishedcommendation, (d) increased autonomy, (e) change in job title, (f) Status symbols like office

space, furnishings, (g) performance bonuses, (h) salary increases, (if) promotion in grade,
or increase in responsibilities and (j) various forms of supplementary compensation. Managers
should match the rewards both with performance and with the perception and needs of the
employee.
6. Managerial Appraisal:
It is relatively easy to appraise the performance of technical or operative employees

compared to managerial personnel. This is because; the performance of operative
employees compared to managerial personnel
can be measured quantitatively, whereas the performance of managers cannot be determin
edquantitative terms. Harold Koontz has developed a concept of managerial functions, viz
., planning, organizing, leading motivating, staffing and controlling. Performing a number
of employees
or series of activities can perform each of these functions. For example, performing staffi
ngfunctions requires performing a series of activities like analyzing jobs of his departmen
t, planning for human resources, deciding upon internal and external recruitment. Thus, ea
ch function and sub functions of manager are elaborated into a series of activities. The
checklist contains the questions in these areas is prepared with a five-degree rating scale,
i.e., externally poor performance, neither poor nor fair performance and externally fair
performance. Thus, this technique measures the performance of managers in managing
organizational environment. Importance performance appraisal:
For many organizations the primary goal of an appraisal system to improve individual and
organizational performance. There may be other goals, however. In
fact, performance appraisal data are potentially valuable for virtually every human
resource functional area
System of Performance Appraisal:
Performance appraisal is a nine-step process:
1.Establish performance standards
2. Communicate standards/expectations to employee.
3.Measure actual performance due to the environment influences.
4.Adjust the actual performance due to the environmental influences.
5.Compare the adjusted performance what that of others and previous.

6.Compare the actual performance with standards and find out deviations, if any.
7.Communicate the actual performance to the employee concerned.
8.Suggest changes in job analysis and standard, if necessary.
9.Follow-up performance appraisal report.
At the first stage, performance standards are established based on the job description and job
specification. The standard should be clear, objective and incorporate all the factors.
The second stage is to inform these standards to all the employees including appraisers.
The third stage is following the instructions given for appraisal, measurement of employee
performance by the appraisers through observations, interviews, records and reports.
Fourth stage is finding out the influence of various internal and external factors on
actual performance. The influence of these factors may be either inducing or hindering the
employee performance. The measured performance may be adjusted according to the influence of
external and internal factors. The performance derived at this stage may be taken actual
performance.
Fifth stage is comparing the actual performance with that of other employees and pervious
performance of the employee and others. This given an idea where the employee to the influence
of external and internal factors. The performance derived at this stage may be taken actual
performance.
Sixth stage is comparing the actual performance with the standards and finding out deviations.
Deviations may be positive or negative. If employee's performance is more than standards, it is
positive deviation and vice-versa is negative deviation.
Seventh stage is communicating, the actual performance of the employee and other employees
doing the same job and discuss with him about the reasons for the positive or negative deviations
from the pre-set standards as the case may be.
Eighth stage is suggestions necessary changes in standards in standards, job analysis, and internal
and external environment.
Ninth stage is follow-up of performance appraisal report. This stage includes guiding,
counseling, coaching and directing the employee or deciding for training anddevelopment of the
employee in order to ensure improved performance. If actual performanceis very poor and beyon

d the scope of improvement it is necessary to take steps for demotion or retrenchment or any other
suitable measure.
Key elements of performance appraisal system are presented in figure below.
Human Performance Employee

performance Appraisal Feedback
Performance
Measures
Performance- Related
standards
Human Resources Employee

Decisions Records

The usual steps are as follows
Plan the performance
Determine responsibility for appraisal

Appraisal period
Examine work performed
Appraisal the results
Conduct appraised interview

Discuss goals for next period
Problems in performance appraisal:
Performance appraisal has come under a heavy barrage of criticism. The list of the problems that
have been associated with performance appraisal are as follows:
➢ A potential weakness of traditional appraisal methods is that they lack objectivity.
➢ A huge challenge that impedes an effective performance evaluation is the bias, which can
be either positive or negative.
➢ Sometimes halo error occurs when a manager generalizes one positive performance
feature or incident to all aspect of employee performance.
➢ Leniency: - Giving an undeserved high-performance appraisal rating to an employee.

Strictness: - Being unduly critical of an employee's work performance.

4.4 ESTABLISHMENT OF PERFORMANCE APPRAISAL CRITERIA:
The most common appraisal criteria are traits, behaviours, competencies, goal achievement, and
improvement potential. The main objective of establishment of performance criteria is to identify
the aspects of a person's performance that an organization should evaluate.
➢ Traits:
Certain employee traits such as attitude, appearance, and initiative are the basis for some
evaluations.
➢ Behaviours:
When an individual's task outcome is difficult to determine, organizations mayevaluate

the person's task related behaviour or competencies. If certain behaviours result in desired
outcomes, there is merit in using them in the evaluation process.
➢ Competencies:
This includes a broad range of knowledge, skills, traits, and behaviors that may betechnic
al in nature, relate to interpersonal skills or be business oriented.
➢ Goal achievement:
If organizations consider ends more important than means, goal achievementoutcomes

become an appropriate factor to evaluate.
➢ Improvement potential:
When organizations evaluate their employees* performance, many of the criteria used
focus on the past. From a performance management view point the problem is that you
cannot change the past. Unless a firm takes further steps, the evaluation data become merely
historical documents. Therefore, firms should emphasize the future, including the
behaviours and outcomes needed to develop the employee, and in the process achieve the
firm’s goals. This involves an assessment of the employee’s potential.
Characteristics of an effective appraisal system:
The basic purpose of a performance appraisal system is to improve performance of individuals,

teams, and the entire organization. The system may also serve to assist in the making of
administrative decisions concerning pay increases, transfers, or terminations. In addition, the

appraisal system must be legally defensible. Organization should seek an accurate assessment of
performance that permits the development of a plan to improve individual and group performance.
The following factors assist in accomplishing these purposes:
➢ Job related criteria: -
Job relatedness is perhaps the most basic criteria in employee performance appraisal. More
specifically, evaluation criteria should be determined through job analysis.
➢ Performance expectations: -
Managers and sub-ordinates must agree on performance expectations in advance of the

appraisal period. On the other hand, if employees clearly understand the expectations, they
can evaluate their own performance and may timely adjustments as they perform their jobs
without having to wait for the formal evaluation review.
➢ Standardization: -
Firm should use the same evaluation instrument for all employees in the same job category
who for the same supervisor. Supervisors should also conduct appraisals covering similar
periods for these employees. Regularly scheduled feedback sessions and appraisal
interviews for all employees are essential.
➢ Trained appraisers: -
The individual or individuals who observe at least representative sample of job

performance normally have the responsibility for evaluating employee performance. This
person is often the employee’s immediate supervisor. Training should be given to these
appraisers to ensure accuracy and consistency. A training module posted on the internet or
company intranet may serve to provide information for managers as needed.
➢ Continuous open communication: -
Most employees have a strong need to know how well they are performing. A good
appraisal system provides highly desired feedback on a continuing basis. There should be
few surprises in the performance review.
➢ Performance reviews: -
A performance review allows them to detect any errors or omissions in the appraisal, or an
employee may simply disagree with the evaluation and want to challenge it. Constant

employee performance documentation is vitally important for accurate performance

appraisal.
➢ Due process: -
Ensuring dur process is vital. If the company does not have a formal grievance procedure,
it should develop one to provide an employee an opportunity to appeal appraisal results
that they consider inaccurate or unfair. They must have a procedure for pursuing their
grievances and having them addressed objectively.
Appraisal Process Followed in Rehabilitation Plantation Ltd
In Rehabilitation Plantation Ltd they are following one of traditional method of performance
appraisal, that is critical incident method. But it is not helpful for the employees, because it is
older method.
Critical Incident Technique:
This too, is a type of appraisal for the employee alone. Here, the employee’s best and worst
incidents of behaviour are analysed annually. These events are the ones that are the most critical
in appraising the employee

5. RESEARCH METHODOLOGY
The procedure adopted for conducting the research a lot of attention as it has direct bearing on
accuracy, reliability and adequacy of results obtained. It is due to this reason that research
methodology, which we used at the time of conducting the research, needs to be elaborated upon.
Research methodology is a way to systematically study and solve the research problems. If a
researcher wants to claim his study as a good study, he must clearly state the methodology adapted
in conducting the research the so that it may be judged by the reader whether the methodology of
work done is sound or not.
5.1 OBJECTIVES
➢ To know about how performance appraisal done in Rehabilitation Plantation ltd Punalur
➢ To find out the effectiveness of Performance appraisal of Rehabilitation Plantation ltd

Punalur
➢ To know the perception of employees towards the appraisal system
➢ To give some suggestions to the organization for improving their appraisal system
➢ To identify the satisfaction level of employees towards performance appraisal system.
5.2 HYPOTHESIS
Hypothesis is considered as the most important instrument in research. A hypothesis is an
assumption or some assumption to be proved or disapproved. The alternative hypothesis is the
logical opposite of the null hypothesis
Null hypothesis (H0) : There is no significance difference between age and type of interview
preferred by the respondent.
5.3 Research Design
A research design is the arrangement of conditions for collection and analysis data in a manner that
aims to combine relevance to the research purpose with economy in procedure. Research Design
is the conceptual structure within which research in conducted. It constitutes the blueprint for the
collection measurement and analysis of data. Research Design includes and outline of what the
researcher will do form writing the hypothesis and its operational implication to the final analysis
of data. A research design is a framework for the study and is used as guide in collection and
analysing the data. It is a strategy specifying which approach will be used for gathering and
analysing the data. It also includes the time and cost budget since most studies are done under these
two-cost budget since most studies are done under these two constraints.

The design is such studies must be rigid and not flexible and most focus attention on the following.
1. What is the study about?
2. Why is the study being made?
3. Where will the study be carried out?
4. What type of data is required?
5. Where can be required data be found?
6. What period of time will the study include?
7. What will be sample design?
8. What techniques of data collection will be used?
9. How will the data be analysed?
10. In what style will the report be prepared?
Types of Research Design:
• Experimental Research Design
• Exploratory Research Design
• Descriptive & Diagnostic Research
5.3.1 Exploratory Research Design: This research design is preferred when researcher has a
vague idea about the problem the researcher has to explore the subject.
5.3.2 Experimental Research Design: The research design is used to provide a strong basis for
the existence of casual relationship between two or more variables.
5.3.3 Descriptive Research Design: It seeks to determine the answers to who, what, where, when
and how questions. It is based on some pervious understanding of the matter.
5.3.4 Diagnostic Research Design: It determines the frequency with which something occurs or
its association with something else.
Research Design Used in this Project
Research Design chosen for this study is Descriptive Research Design. Descriptive study is based
on some previous understanding of the topic. Research has got a very specific objective and clear-
cut data requirements.

5.4 SOURCES OF DATA
5.5 PRIMARY DATA
It is first-hand data, which is collected by researcher itself. Primary data is collected by various
approaches so as to get a precise, accurate, realistic and relevant data. The main tool in gathering
primary data was investigation and observation. It was achieved by a direct approach and
observation from the officials of the company.
5.6 SECONDARY DATA
It is the data which is already collected by someone else. Researcher has to analyse the data and
interprets the results. It has always been important for the completion of any report. It provides
reliable, suitable, adequate and specific knowledge.
I took data comprise annual reports and post records. Bank has provided me annual reports from
2004-05 to 2007-08 by help of which, I prepared my report.
The valuable cooperation extended by staff members contribution a lot to fulfil the requirements
in the collection of data in order to complete the project. Various statistical tools are applied
depending on the research problem. In this study ratio analysis, comparative financial statements
analysis, common size statements Trend Analysis has been used for analysing and interpreting the
result.
5.6 POPULATION
The collection of elements or objects possessing information desired by the researcher regarding
what inferences are to be made is termed as target population or the universe. Our target population
• Performance appraisal of Employees in Rehabilitation Plantation ltd

5.7 SAMPLE DESIGN
Sampling is necessary because it is almost impossible to examine the entire parent population (i.e.
the entire universe) various factors such as time available cost, purpose of study etc. make it
necessary for the researchers to choose a sample. It should neither be too small nor too big. It
should be manageable. The sample size of past 3 years is taken for present study due to time
limitation.

Sample Unit
A sampling unit is the primary unit containing the sampling elements of the population. Our
sampling units is;
• The employees of Rehabilitation Plantation ltd
Sample Size
The sample size for a research refers to the total number of elements of the population to be
included in the sample for conducting the research study. The sample for our study is;
• 40 Employees
5.8 SAMPLING METHOD
There are two types of sample methods;
• Probability sampling techniques
• Non-probability sampling techniques
5.8.1 Probability sampling techniques
The method, in which all units of the universe are given equal chance of being selected in the
sample, is known as Probability Sampling.
5.8.2 Non-probability sampling techniques
Non-probability sampling is that type of sampling procedure which does not have any ground for
estimating the probability that whether or not each item in the population has been included in the
sample.
For our study, we are taking non-probability sampling as the sampling technique. The different
types of non-probability sampling technique are;
• Convenience sampling
• Panel sampling
• Purposive sampling
• Snow ball sampling
Among this Convenience sampling is used for the study.

On the basis of convenience and approachability, the choice of the sampling

units by the researcher, is known as “Convenience Sampling”.
5.9 METHODS OF DATA COLLECTION
Primary data are collected during the course of doing experiments in an experimental research. The
different types of primary data are;
• Survey
• Interview
• Questionnaire
Here we are taking Questionnaires (for employees). Secondary data is collected through company
publications, journals, company’s website, internet, newspapers, etc.
5.10 DRAFTING A QUESTIONNAIRE
Questionnaire
A questionnaire is a research instrument consisting of a series of questions (or other types of

prompts) for the purpose of gathering information from respondents.
Drafting of a Questionnaire
The questionnaire is an important tool for gathering primary data. Poorly constructed questions
can result in large errors and invalidate the research data. So significant effort should be put into
the questionnaire design. In this project I am formulated the questionnaire in the following manner:
• At the top of the survey questionnaire was formulated to take the project details and also builder’s
details of the project.
• Questionnaire was formulated containing 20 questions.
• Out of 20 questions 3 dichotomous questions (“yes/no” question), and remaining are multiple
choice questions.
• Questions are formulated to meet the objectives of this project study
• It is a total five pages questionnaire.

5.11 PILOT SURVEY
A pilot survey is a strategy used to test the questionnaire using a smaller sample compared to the
planned sample size. In this phase of conducting a survey, the questionnaire is administered to a
percentage of the total sample population, or in more informal cases just to a convenience sample.
From the framed questionnaire, to test the validity of the questionnaire, the questionnaire is
distributed among 50 employees. From the filled questionnaire, some rectifications have been
made by the responds of the respondents.
5.12 DATA ANALYSIS TECHNIQUES
5.12.1 Percentage Analysis
This is the simplest way to analyze different types of data. The percentage rate of each data is
found out with respect to the total.
Percentage Analysis is the method to represent raw streams of data as percentage (a part in 100-
percentage) for better understanding of collected data. This form of analysis looks at raw streams
of data in the form of percentage. This is done to learn about the data collected.
The percentage method is used for comparing certain features. The collected data represented in
the form of tables and graphs in order to give effective visualization of comparison made.
Percentage = ( no of respondents ÷ total respondents) × 100
5.12.3 Chi-Square Analysis
The chi-square distribution has many uses in the field of testing of hypothesis. It helps to test
whether a population has given variance. It also helps to test goodness of fit of a theoretical
distribution to an observed distribution and in testing independence of attributes in a contingency
table. Any statistical test that uses the chi square distribution can be called as chi square test. Chi
square test is conducted as a statistical test to investigate difference. The chi square measures the
difference between a statistically generated expected results and an actual to see if there is a
statistically difference between them. It measures the goodness of fit between an unexpected and
an actual result.
Formula for chi square test is
Chi square (χ²) = ∑ [O-E]^2/E

Where, O= Observed sample in each category
E= Expected frequency in corresponding category
Chi Square test degree of freedom
The degree of freedom for chi square test is equal to the difference between degree of freedom
associated with the models. Each type of two tables has its own chi square distribution, depending
on the number of row and columns. And each chi square distribution is identified by its degree of
freedom. A two-way table with r rows and c column uses a chi square distribution with (r-1) * (c-
1) degree of freedom,
Chi Square Goodness of fit test
This test applicable when the observations are independent (random) and the total frequency should
be large. This is used to test association of variables in two- way tables where the assumed model
of independence is evaluated against the observed data. The chi square goodness of fit test is that
it can be applied to any univariate distribution to which you can calculate cumulative distribution
function. The chi square goodness of fit test can be distributions such as the binomial and poison.
Analysis of Variance
Analysis of variance (ANOVA) is a collection of statistical models and their associated estimation
procedures (such as the "variation" among and between groups) used to analyse the differences
among group means in a sample. ANOVA was developed by statistician and evolutionary biologist
Ronald Fisher. The ANOVA is based on the law of total variance, where the observed variance in
a particular variable is partitioned into components attributable to different sources of variation. In
its simplest form, ANOVA provides a statistical test of whether two or more population means are
equal, and therefore generalizes the t-test beyond two means.
The analysis of variance can be used as an exploratory tool to explain observations. A dog show
provides an example. A dog show is not a random sampling of the breed: it is typically limited to
dogs that are adult, pure-bred, and exemplary. A histogram of dog weights from a show might
plausibly be rather complex, like the yellow-orange distribution shown in the illustrations. Sup-
pose we wanted to predict the weight of a dog based on a certain set of characteristics of each
dog. One way to do that is to explain the distribution of weights by dividing the dog population
into groups based on those characteristics. A successful grouping will split dogs such that (a)
each group has a low variance of dog weights (meaning the group is relatively homogeneous)
and (b) the mean of each group is distinct (if two groups have the same mean, then it isn't reason-
able to conclude that the groups are, in fact, separate in any meaningful way).
In the illustrations to the right, groups are identified as X1, X2, etc. In the first illustration, the
dogs are divided according to the product (interaction) of two binary groupings: young vs old,
and short-haired vs long-haired (e.g., group 1 is young, short-haired dogs, group 2 is young,

long-haired dogs, etc.). Since the distributions of dog weight within each of the groups (shown in
blue) has a relatively large variance, and since the means are very similar across groups, group-
ing dogs by these characteristics does not produce an effective way to explain the variation in
dog weights: knowing which group a dog is in doesn't allow us to predict its weight much better
than simply knowing the dog is in a dog show. Thus, this grouping fails to explain the variation
in the overall distribution (yellow orange).
An attempt to explain the weight distribution by grouping dogs as pet vs working breed and less
athletic vs more athletic would probably be somewhat more successful (fair fit). The heaviest
show dogs are likely to be big, strong, working breeds, while breeds kept as pets tend to be
smaller and thus lighter. As shown by the second illustration, the distributions have variances that
are considerably smaller than in the first case, and the means are more distinguishable. However,
the significant overlap of distributions, for example, means that we cannot distinguish X1 and X2
reliably. Grouping dogs according to a coin flip might produce distributions that look similar

6.DATA ANALYSIS AND INTERPRETATION

This chapter aims to present data that has been collected from the survey questionnaires from the
employees of Rehabilitations Plantations Pvt. Ltd. and discussion of the research findings. I
utilized graphs, diagrams and charts to present the findings of the survey in order to make it easier
to compare and analyse the variables of the results.
PERCENTAGE ANALYSIS
TABLE 6.1 DEMOGRAPHIC INFORMATION
PARTICULARS RESPONDENTS FREQUENCY (IN %)

MALE 96 64
FEMALE 54 36
FIG. 6.1 DEMOGRAPHIC INFORMATION
GENDER
WOMEN
36%
MEN
64%
INFERENCE
The pie chart (Fig.6.1) shows that males (64%) prevails females (36%) from the total number of
respondents in the study. These proportions show that there is no relative balance between the
two genders. The result most likely suggests that the organization has more male employees than
females.

TABLE 6.2 AGE GROUPS
AGE WISE CLASSIFICATION OF RESPONDENTS

AGE RESPONDENTS FREQUENCY (IN %)
BELOW 20 3 2
20-30 47 31
30-40 36 24
40-50 33 22
50&ABOVE 31 21
FIG 6.2 AGE GROUPS
AGE GROUP
BELOW 20, 3, 2%
50&ABOVE, 31, 21%
20-30, 47, 31%
40-50, 33, 22%
30-40, 36, 24%
INFERENCE
The age group pie chart (Fig. 6.2) shows that middle aged employees ranged 20-40 prevails more
in the organization over other groups. The number of employees over the age of 40 is considerate
(43%). The number of employees under the age of 20 is trivial (2%).

TABLE 6.3 YEARS OF EXPERIENCE WITHIN THE ORGANIZATION
YEARS OF EXPERIENCE
NO. OF YEARS EMPLOYEES FREQUENCY (IN %)
0-2 39 26
2-4 42 28
4-6 29 19
6-10 27 18
10 & ABOVE 13 9
FIG. 6.3 YEARS OF EXPERIENCE WITHIN THE ORGANIZATION
EXPERIENCE
10 & ABOVE
9%
0-2
6-10 26%
18%
4-6
19% 2-4
28%
INFERENCE
The experience pie chart (Fig. 6.3) shows that most of the employees in the organization are
relatively new because majority of them have experience between one and four years in the
organization. A considerate number of respondents (19%) have an experience between four and
six years and 18% of the respondents are well experienced within the organization with more than
six years. A small number of respondents have more than ten years of experience in the
organization.

THE RESPONSES OF THE EMPLOYEE’S QUESTIONNAIRE SURVEYThis section will

present and discuss the responses of employee’s questionnaire based on the PA system, and some
of the analysed responses.
TABLE 6.4 PA SYSTEM IN THE ORGANIZATION
PA SYSTEM IN THE ORGANIZATION

Yes 112 75
No 38 25
FIG. 6.4 PA SYSTEM IN THE ORGANIZATION
IS THERE A FORMAL PA SYSTEM IN YOUR

ORGANIZATION?
NO
25%
YES
75%
INFERENCE
The above diagram clearly shows that majority (75%) of the employees are aware of the
performance appraisal system in the organization. However, a circumscribed number of employees
(25%) are unaware of the performance appraisal system in the organization. The Fig. 6.4 is more
than enough evidence to suggest the organization has an appraisal system. This was established
based on the findings that 75% of the respondents strongly agreed to the statement that sought to
find out whether there is an appraisal system in the organization.
TABLE 6.5 FAIRNESS OF PAS IN THE ORGANIZATION
FAIRNESS OF PAS IN THE ORGANIZATION

YES 98 65
NO 52 35

FIG. 6.5 FAIRNESS OF PAS IN THE ORGANIZATION
DOES PA SYSTEM WORKS FAIRLY/EQUITABLY?
NO
35%
YES
65%
INFERENCE
The above given pie chart (Fig.6.5) shows the working of performance appraisal system in the
organization. From the 75% of the respondents who are aware of the performance appraisal system
in the organization 65% of them feels that the system works fairly and effectively. A minority of
35% of the respondents finds the PAS in the organization to be unfair. Moreover, the opinion of
the minority also has a considered, it is important to note that 75% of the respondents who find
PAS as unfair are unaware of the existence of PAS in the organization. Thus, it is evident that the
Performance appraisal system in the organization works fairly and equitably.
TABLE 6.6 RECURRENCES OF APPRAISAL
RECURRENCE OF APPRAISAL
ALWAYS 36 24
FREQUENT 39 26
OFTEN 35 23
SOMETIMES 27 18
NEVER 13 9

FIG. 6.6 RECURRENCES OF APPRAISAL
DOES YOUR IMMEDIATE SUPERVISOR APPRAISE YOUR

PERFORMANCE THROUGHOUT THE YEAR?
NEVER
9% ALWAYS
SOMETIMES 24%
18%
FREQUENT
26%
OFTEN
23%
INFERENCE
It is evident from the table and the pie chart that almost every respondent was experienced the
performance review process in the organization except the 13 members who did not. About 24%
of the respondents undergo PA regularly and 26% experience PA frequently. Almost 41% of the
respondents undergoes PA sometimes or often. It is most important to involve as many staffs as
possible for the appraisal process which brings myriad of benefits to the organization. However,
the most academics suggest that not having a PAS is better than having a bad one since the bad
system result in worse effect on the organizational performance than not conducting appraisals. It
is, therefore, crucial to make sure PR is conducted effectively in the workplace.
TABLE 6.7 NEED OF PERFORMANCE APPRAISAL
NEED OF PERFORMANCE APPRAISAL

STRONGLY AGREE 43 29
AGREE 39 26
NEUTRAL 27 18
DISAGREE 28 19
STRONGLY DISAGREE 12 8

FIG. 6.7 NEED OF PERFORMANCE APPRAISAL
PERFORMANCE APPRAISAL IS NEEDED IN AN

ORGANIZATION
STRONGLY DISAGREE 12
DISAGREE 28
NEUTRAL 27
AGREE 39
STRONGLY AGREE 43
0 5 10 15 20 25 30 35 40 45 50
INFERENCE
Surprisingly, 29% of the respondents strongly agree and 26% of the respondents agree that
Performance appraisal system is necessary in an organization. A considerate number of
respondents (19%) were not sure whether PAS is necessary or not. About 19% of the employees
disagree and 8% of the respondents strongly disagree that PAS is important. Only if employees
entirely understand the benefits of the system, they are keen to involve themselves fully and
honestly in PA (Corcoran, 2006). Employees who don’t acknowledge the benefits of the system
tend to downgrade and offer less contribution. Many employees of the concerned organization are
not entirely realized the advantages of PAS which might be affecting the accuracy of the system
badly by having a negative impact on the employee’s motivation to participate.
TABLE 6.8 EFFECT OF PAS ON CO-OPERATION AND TEAMWORK
EFFECT OF PAS ON CO-OPERATON AND TEAMWORK

AGREE 38 25
NEUTRAL 27 18
DISAGREE 29 19

FIG. 6.8 EFFECT OF PAS ON CO-OPERATION AND TEAMWORK
PAS HELPS WIN CO-OPERATION AND TEAMWORK

AMONG EMPLOYEES
DISAGREE 29
NEUTRAL 27
AGREE 38
STRONGLY AGREE 42
0 5 10 15 20 25 30 35 40 45
INFERENCE
The data reveals that the PA system and the PA goals set by the organization to the employees has
built co-operation and teamwork among the employees. This is evident from the statistics that 53%
of the respondents agreed to it and only 29% of the respondents disagreed to it. A considerate 18%
of the employees does not have an opinion about it.
TABLE 6.9 EFFECT OF PAS ON PERSONAL SKILLS
EFFECT OF PAS ON PERSONAL SKILLS

AGREE 39 26
NEUTRAL 30 20
DISAGREE 22 15

FIG. 6.9 EFFECT OF PAS ON PERSONAL SKILLS
PAS HELPS IN IMPROVING PERSONAL SKILLS
DISAGREE 22
NEUTRAL 30
AGREE 39
STRONGLY AGREE 41
0 5 10 15 20 25 30 35 40 45
INFERENCE
If the process of appraisal does not lead to the improvement of the skills and proficiency of the
employees, the very purpose of appraisal becomes illogical. In the survey conducted it was
observed that nearly 53% of the respondents agree that PA does improves personal skills of the
employees. Nearly 27% of the respondents view that it does not serve this purpose and around 20%
were not able to respond as to whether it serve any purpose or not.
TABLE 6.10 EFFECTS OF PAS ON IDENTIFYING STRENGTH AND WEAKNESS
EFFECT OF PAS ON IDENTIFYING STRENTH AND WEAKNESS

AGREE 35 23
NEUTRAL 31 21
DISAGREE 29 19

FIG. 6.10 EFFECTS OF PAS ON IDENTIFYING STRENGTH AND WEAKNESS
PAS HELPS IDENTIFYING THE STRENGTH AND WEAKNESS

OF EMPLOYEES
DISAGREE 29
NEUTRAL 31
AGREE 35
STRONGLY AGREE 39
INFERENCE
The data reveals that the appraisal is reviewed to address the strengths and weaknesses of the
employees. The chart reveals that 26% of the respondents strongly agreed to the context, 23%
agreed to it and 21% of the respondents could not confirm this position whilst the remaining 30%
generally dissented. There is a need to address strengths and weaknesses that come up so that the
ultimate aim of an appraisal is achieved.
TABLE 6.11 ELUCIDATION OF PURPOSES OF PA
ELUCIDATION OF PURPOSES OF PA
AGREE 31 21
NEUTRAL 19 13
DISAGREE 32 21

FIG. 6.11 ELUCIDATION OF PURPOSES OF PA
THE PURPOSES OF PA ARE MADE CLEAR
DISAGREE 32
NEUTRAL 19
AGREE 31
STRONGLY AGREE 42
INFERENCE
About 43% of the respondents presume that the objectives of the appraisal system are somehow
clear in which 28% strongly agree with it. Almost 13% of the respondents does not have an opinion
or does not want to reveal it. Almost 39% of respondents affirms that the purposes of the
organization strive through PA are not made clear to the employees. So, there is an urgent need for
the organization to clearly define and communicate the objectives of the system to every individual.
Otherwise, it is diminishing the system efficacy greatly.
TABLE 6.12 PA ON IDENTIFICATION OF HIDDEN POTENTIALS OF EMPLOYEES
IDENTIFICATION OF HIDDEN POTENTIALS OF EMPLOYEES

AGREE 31 21
NEUTRAL 24 16
DISAGREE 28 18

FIG. 6.12 PA ON IDENTIFICATION OF HIDDEN POTENTIALS OF EMPLOYEES
PA LEADS TO THE IDENTIFICATION OF HIDDEN POTENTIALS

OF THE EMPLOYEES
DISAGREE 28
NEUTRAL 24
AGREE 31
STRONGLY AGREE 46
INFERENCE
The data shows that the PA system in the organization has a positive effect in identifying the hidden
potentials of the employees. Almost 31% of the employees strongly agree to the context that PA
helps identifying the hidden potentials of the employees. About 21% of the respondents agree and
absolutely 16% does not have an opinion on the context. About 33% of the respondents affirms
that PA does not help in the identification of hidden potential of the employees.
TABLE 6.13 PLAUSIBILITY OF PERFORMANCE GOALS
PLAUSIBILITY OF PERFORMANCE GOALS

AGREE 41 27
NEUTRAL 29 19
DISAGREE 23 16

FIG. 6.13 PLAUSIBILITY OF PERFORMANCE GOALS
PERFORMANCE GOALS SET ARE

REALISTIC/ACHIEVABLE/MEASURABLE
DISAGREE 23
NEUTRAL 29
AGREE 41
STRONGLY AGREE 39
INFERENCE
This question was purposely put into the questionnaire to validate the practicability and plausibility
of the PAS in the organization. About 53% of the respondents affirms that the performance goals
set by the organization are realistic and achievable. However, 27% of them assert that PA goals
are unrealistic. Almost 19% of the respondents does not have an opinion about it. The data clearly
shows that the PA goals of the organization are somewhat realistic and achievable.
TABLE 6.14 PAS ON PRODUCTIVITY
PAS ON PRODUCTIVITY
AGREE 31 21
NEUTRAL 28 18
DISAGREE 23 15

FIG. 6.14 PAS ON PRODUCTIVITY
PAS IMPROVES PRODUCTIVITY OF EMPLOYEES
DISAGREE 23
NEUTRAL 28
AGREE 31
STRONGLY AGREE 43
INFERENCE
This question was put in to find out and analyse the importance of the Appraisal system to the
productivity if the employees. The data clearly shows that the recognition of the employee’s
performance does have a direct impact on his/her efficiency. A vast majority of respondents (i.e.,
49% which includes ratings of “agree” and “strongly agree”) affirm that their performance is
directly influenced by recognitions of their performance by the appraisal system. About 32% of
the respondents have stated that the appraisal system had no effect on their productivity and 19%
of the respondents have no idea whether the Performance appraisal system has an effect on
productivity or not.
These points out to the fact that the Appraisal system goes a long way in determining the
productivity of the employees in the organization. Therefore, it is very important for any
organization to devise their Performance appraisal system carefully

TABLE 6.15 PA ON JOB SATISFACTION
PA ON JOB SATISFACTION
VERY HIGH 35 26
HIGH 39 24
MODERATE 15 10
LOW 32 21
VERY LOW 29 19
FIG. 6.15 PA ON JOB SATISFACTION
DOES PA GIVES JOB SATISFACTION TO EMPLOYEES?

VERY LOW
19% VERY HIGH
24%
LOW
21%
HIGH
26%
MODERATE
10%
INFERENCE
About 49% of the respondents affirms that the Performance appraisal system in the organization
has an effect on employee job satisfaction. Almost 41% dissented that PA gives job satisfaction to
the employees and 10% of the respondents has no opinion about it. Respondents indicated that PA
affected the level of job satisfaction both positively and negatively depending on how PA is
executed. Negative impacts can be attributed to the fact that a low rating due to unmet targets
irrespective of the effort can de-motivate an employee. For the employees who rated highly, they
may be motivated to perform better in their work.

TABLE 6.16 IMPACT OF PA ON RETRENCHMENT
PA AND RETRENCHMENT
HIGHLY RELATED 12 8
MUCH RELATED 11 14
MODERATELY RELATED 2 1
SOMEWHAT RELATED 21 7
NO RELATION 105 70
FIG. 6.16 IMPACT OF PA ON RETRENCHMENT
IS THERE A RELATIONSHIP BETWEEN RETRENCHMENT

AND PAS?
104
21
12 11
2
HIGHLY RELATED MUCH RELATED MODERATELY RELATED SOMEWHAT RELATED NO RELATION
INFERENCE
About 8% of the respondents affirms that retrenchment is highly related to PAS and 14% asserted
that they are somewhat related, a trivial 1% asserted that they are moderately related and 7% of the
respondents affirms that they are much related. However, a vast majority of the respondents (70%)
dissented that there is a connection between PAS and retrenchment in the organization. This data
shows that the organization does not take any severe action against the employees based on the PR
results.

TABLE 6.17 BASIS OF PA REGARDING PROMOTIONS
BASIS OF PA REGARDING PROMOTIONS

SENIORITY 19 13
MERIT 50 33
BOTH SENIORITY AND MERIT 28 19
ATTENDENCE 31 21
OTHERS 22 14
FIG. 6.17 BASIS OF PA REGARDING PROMOTIONS
PA REGARDING PROMOTIONS SHOULD BE BASED ON?

50
31
28
22
19
SENIORITY MERIT BOTH SENIORITY & ATTENDENCE OTHERS

MERIT
INFERENCE
It is evident from the bar diagram (Fig. 6.17) that majority of the respondents (33%) suggests merit
to be the criterion for Performance appraisal-based promotions. About 13% of the respondents are
in the opinion of considering seniority as the major criterion for promotions. Although 19% of the
respondents ought to consider both merit and seniority for promotions. Nearly 21% of the
respondents prefers attendance to be considered and 15% of them prefers other factors over the
given criteria. This survey results shows that most of the respondents are aware of the fact that
merit is the major factor that needs to be concentrated on by the employees. Attendance also plays
an important role.

TABLE 6.18 HANDLING NON-PERFORMERS
HANDLING NON-PERFORMERS
TRAINING 58 38
COUNSELLING 39 26
TRANSFER 19 13
TERMINATION 9 6
OTHER MEASURES 25 17
FIG. 6.18 HANDLING NON-PERFORMERS
HOW SHOULD BE THE NON-PERFORMERS MANAGED?

OTHER MEASURES
17%
TERMINATION TRAINING
6% 38%
TRANSFER
13%
COUNSELLING
26%
INFERENCE
The pie chart represents the perception of respondents on managing non-performers in the
organization by the respondents. It can be observed that 38% of the respondents were of the opinion
that training, and development of certain skills was needed, 26% of them suggests that counselling
should be conducted. About 13% of the respondents suggests transfer for the non-performers and
a trivial 6% of them were in the opinion of terminating the non-performers from the organization.
Nearly 16% of the respondents have chosen other measures for managing the non-performers in
the organization.

TABLE 6.19 PROPOSITION OF PA RESULTS
PROPOSITION OF PA RESULTS
POTENTIAL FOR PROMOTION 42 28
TRANSFER 19 13
CONSIDERATION FOR T&D 45 30
EXTENSION OF PROBATION 35 23
TERMINATION 9 6
FIG. 6.19 PROPOSITION OF PA RESULTS
THE RECOMMENDATION OF PA IS USED FOR?
POTENTIAL FOR PROMOTION 42
TRANSFER 19
CONSIDERATION FOR T&D 45
EXTENSION OF PROBATION 35
TERMINATION 9
INFERENCE
This question was asked to the respondents to find out of the impact of the performance appraisal
results on the employees. The results of the survey show that the results of the Appraisal process
are mostly used to ascertain the potential of the employees for promotions and also for the
deliberation for training and development for the employees. Apart from potential for promotion
and consideration for training and development, extension of probation prevails more in the
organization. Transfer and termination are only insurgent results of the performance appraisal
process. This shows that the organization does not take any severe actions towards the employees
on the basis of PA results. There is a positive approach by the organization towards the employees
by providing them training and development and extending the period of probation rather than

transferring or terminating the low or non-performers and rewarding the high performers by
offering promotions. It is PAS plays an important role in the HR activities in the organization
TABLE 6.20 SATISFACTION TOWARDS PAS IN THE ORGANIZATION
SATISFACTION TOWARDS PAS

HIGHLY SATISFIED 34 23
SATISFIED 34 23
NEUTRAL 25 16
DISSATISFIED 26 17
HIGHLY DISSATISFIED 31 21
FIG. 6.20 SATISFACTION TOWARDS PAS IN THE ORGANIZATION
ARE YOU SATISFIED WITH PAS IN YOUR

ORGANIZATION?
34 34 31
25 26
HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATISFIED
INFERENCE
The satisfaction level of employees towards the performance appraisal system in the organization
is quite high as can be seen from the bar chart (Fig. 6.20). This is a good sign as increased level of
satisfaction is the main emphasis of any appraisal system. About 23% of the respondents are highly
satisfied and 23% of the respondents are satisfied with the performance appraisal system in the
organization. Whereas, 16% of the respondents does not have an opinion about the PAS in the
organization. About 17% of the respondents are dissatisfied and 21% of the respondents are highly
dissatisfied with the PAS in the organization. The high satisfaction level towards the system could
also be due to various reasons like monetary or non-monetary incentives or growth parameters.
The satisfaction level also brings to light the efficiency of the management in devising an effective
and acceptable appraisal system.

ANOVA
To find out the relationship between gender and experience.
HYPOTHESIS:
NULL HYPOTHESIS (HO):
There is no significant relationship between satisfaction towards PAS and the effect of PAS on
productivity.
ALTERNATE HYPOTHESIS (H1)
There is a significant relationship satisfaction towards PAS and the effect of PAS on productivity..
TABLE 6.21 SHOWING THE EFFECTIVESNESS OF PA ON PRODUCTIVITY AND

SATISFACTION TOWARDS PA.
SATISFACTION TOWARDS PAS

SL.N EFFECTIVESN
O ESS Highly Satisfi Neutr Dissatisfi Highly Tot
satisfi ed al ed dissatisfied al
ed
1 Strongly agree 8 12 10 7 6 43
2 Agree 9 5 8 0 9 31
3 Neutral 6 8 0 9 5 28
4 Disagree 5 5 3 4 6 23
5 Strongly 6 4 4 6 5 25
disagree
Total 34 34 25 26 31 150
CALCULATION:
Correlation factor (C.F) =T2 /N
= 1502/25
=22500/25
=900

Sum of square of Total variance : (SST)
=Sum of squares of all items – C.F
= 1090-900
=190
Sum of squares between rows (SSR)
= [(432/5) +(312/5) +(282/5) +(232/5) +(252/5)] -900
= [369.8+192.2+156.8+105.8+125]-900
= 49.6
Sum of squares between columns (SSC)
= [ (342/5) +(342/5) +(252/5) +(262/5) +(312/5)]-900
= [231.2+231.2+125+135.2+192.2]-900
=14.8
Error Sum of squares = SST-(SSR+SSC)
=190-(49.6+14.8)
=125.6
ANOVA TABLE
SOURCE OF SUM OF DEGREE OF VARIANCE F

VARIANCE SQUARES FREEDOM
BETWEEN 49.6 5-1=4 49.6/4=12.4 12.4/7.85
ROWS =1.592
BETWEEN 14.8 5-1=4/ 14.8/4=3.7 3.7/7.85
COLUMNS =0.471
RESIDUAL 125.6 4*4=16 125.6/16=7.85
CALCUTED VALUE
F1=1.592
F2=0.471

TABLE VALUE
Critical value; The table value of ANOVA at 5% and the degree of freedom is (4,16) =3.01
RESULT
The table value of F1 at 0.05 level of significance is 3.01. Calculated value is 2.063. Since the
calculated value is lesser than the table value H0 is accepted, i.e., there is no significant relationship
between the satisfaction of employees towards the PAS in the organization and the effect of PA in
productivity.
CHI-SQUARE TEST
AIM
To find out the relationship between the time period of performance appraisal and the effect of
performance appraisal on improving employee skills.
NULL HYPOTHESIS (HO):
There is no significant relationship between time period of PA and the effect of PA on improving
employee skills.
ALTERNATE HYPOTHESIS (H1)
There is a significant relationship between time period of PA and the effect of PA on improving
employee skills.
TABLE 6.22 THE TIME PERIOD OF PA AND THE EFFECT OF PA ON IMPROVING

EMPLOYEE SKILLS
PA HELPS IN TIME PERIOD OF PA

SL.NO IMPROVING
SKILLS Always Frequent Often Sometimes Never Total
1 Strongly agree 7 13 11 5 5 41
2 Agree 8 10 9 8 4 39
3 Neutral 8 6 8 7 1 30
4 Disagree 7 4 4 5 2 22
5 Strongly disagree 6 6 3 2 1 18
Total 36 39 35 27 13 150

TABLE 6.23 CHI-SQUARE TESTS
VALUE df ASYMP.SIG.
(TWO SIDED)
PEARSON CHI-SQUARE 16.567* 9 0.052
LIKELYHOOD RATIO 17.734 9 0.0356
LINEAR –BY-LINEAR 1.253 1 0.263

ASSOCIATION
NO. OF VALID CASES 150
a.12 cells (75.0%) have expected count less than 5. The minimum expected count is 40.
RESULT
In the above Chi-square analysis table 6.23 found that the vale is 16.567 and the level of
significance is 0.052 i.e. 1% of level significant. So, the hypothesis HO is rejected and H1 is
accepted. There is a significant relationship between time period of PA and effect of PA on
improving personal skills.

A STUDY ON PERFORMANCE APPRAISAL SYSTEM AT REHABILITATION PLANTATION LTD
7.FINDINGS
7.1 PERCENTAGE ANALYSIS
• Majority (64%) of the respondents are male.

• Majority (54%) of the respondents are between the age group of 20-40.
• Majority (54%) of the respondents have an experience between 0-4 years.
• Majority (75%) of the respondents are aware of the PAS in the organization.
• Majority (65%) of the respondents has an opinion that PA system works fairly in the or-
ganization.
• Most of the respondents say that PA is conducted regularly.
• Majority (55%) of the respondents says that PA is needed in an organization.
• Majority (53%) of the respondents feels that PA helps in winning co-operation and team-
work among employees.
• About 50% of the respondents say that PA helps in improving personal skills.
• Majority (49%) of the respondents says that PA helps in identifying strengths and weak-
nesses of the employees.
• Majority (49%) of the respondents feels that the purposes of PA are made clear.
• Majority (52%) of the respondents ensures that PA helps in identifying the hidden poten-
tials of the employees.
• Majority (53%) of the respondents feels that PA goals are plausible.
• About 50% of the respondents feel that PA improves productivity.
• About 50% of the respondents feel that PA brings job satisfaction.
• Majority (77%) of the respondents say that there is no relationship between PA and re-
trenchment.
• About 50% of the respondents are in the opinion that promotions should be bases on merit
only.
• Majority (64%) of the respondents are in the opinion that training and counselling should
be provided to the non-performers.
• The proposition of PA results is solely to measure the potential for promotion in the organ-
ization.
• Majority (54%) of the respondents are satisfied with the PAS in the organization.
• There is no relationship between satisfaction towards and PAS and the effect of PA on
productivity.1

7.2 CHI – SQUARE TEST

In the above Chi-square analysis, it is found that the vale is 16.567 and the level of significance is
0.052 i.e. 1% of level significant. So, the hypothesis HO is rejected and H1 is accepted. There is a
significant relationship between time period of PA and effect of PA on improving personal skills.
7.3 ANOVA TEST
The table value of F1 at 0.05 level of significance is 3.01. Calculated value is 2.063. Since the
calculated value is lesser than the table value H0 is accepted, i.e., there is no significant relationship
between the satisfaction of employees towards the PAS in the organization and the effect of PA in
productivity.

8. RECOMMENDATION
Based on the findings and discussions the following are recommended:
1. The need to ensure that Performance Criteria is up to date
There is the need to ensure that performance criteria have been extracted from an up-to-date job
description.
2. Need to Ensure Fairness In The Appraisal Process
The study observed although they were in the minority, some respondents doubted the fairness of the
appraisal process in the university. To totally erase this impression, since it has the potential of
affecting confidence in the system, there is the need to ensure that fairness is maintained in the
appraisal process so that the necessary trust and cooperation will be forthcoming from staff.
3. The Need To Ensure Effective Elucidation Of Purposes Of The Appraisal Process
The study also identified that the purposes of the performance appraisal process is not properly
elucidated to the employees. The employees should be aware of the purpose of the PA process which
would bring dedication and co-operation towards the process, which results in effective performance
appraisal.
4. The need to ensure effective supervision
Finally, one of the challenges that usually confront the implementation of an appraisal is the fact that
some supervisors do not display the right attitude to help the process. Although this was not found with
organization, there is the need for supervisors to enhance the process by exhibiting the right attitude.
This will go a long way to create the right enthusiasm among staff.

9. CONCLUSION
The study has examined the appraisal system and practices of Rehabilitations Plantations Pvt.Ltd using
respondents who were both junior and senior members from the organization. Several findings were
made and adequately discussed. Key among the findings was that the institution has in place an
appraisal system with key performance criteria that have been developed and clearly identified.
Effectively it came out that the process has helped in identifying systematic factors that are barriers to
effective performance.
It must also be emphasized that the uniformity of the appraisal structure is vital because it ensures that
all employees are evaluated on a standardized scale. Appraisals that are not uniform are less effective
because the criteria for success or failure become arbitrary and meaningless. Furthermore, uniformity
allows a company to systematically compare the appraisals of different employees with each other.
The general conclusion therefore is that organisations should seriously consider methods and systems
that would help them administer their appraisal process effectively so that the stated objectives will
achievable and subsequently translate into the organisation’s productivity.

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APPENDICES

PILOT STUDY
1. Which method of performance appraisal is implemented in the organization?
a. Merit
b. Grading
c. Other
2. Do you receive any increment in your salary after performance Appraisal.

a. Yes
b. No
Q4. Do you think that performance Appraisal help to provide an atmosphere where all
are encouraged to share one another burden.
a. Yes
b. No
3. Do you think performance appraisal helps people set and achieve meaningful goals.
a. Yes
b. No
4. Do you think performance appraisal give constructive criticism in a friendly and positive
manner.
a. Yes
b. No
5. Do you think that performance of employees improve after process of performance ap-
praisal ?
a. Yes
b. No
6. Do you think performance appraisal improves motivation and job Satisfaction.

a. Yes
b. No
Q9. Is the top level management partial in Performance Appraisal
a. Yes
b. No

7. Do you think performance appraisal helps to change behaviour of Employees.

a. Yes
b. No
8. In your opinion Performance Appraisal system of your organization is related to which of

the following ?
a. Retention of Employees
b. Recruitment System
c. Organizational Culture
d. Motivation

Dear sir/madam
I am RISHI REJI, student of MOUNT ZION SCHOOL OF BUSINESS MANAGEMENT,

MOUNT ZION COLLEGE OF ENGINEERING, KADAMMANITTA are presently doing the
project on “STUDY ON PERFORMANCE APRAISAL ON BPL MEDICAL TECHNOLOGIES
LTD ”. I request you to kindly fill the questionnaire and I assure you that the data generated shall be
kept confidential.
QUESTIONNAIRE
1. NAME
2. AGE
Below 20 20 to 30 30 to 40 40 to 50 50 and above
3. GENDER
Male Female
4. DESIGNATION/JOB TITLE
5. WORK EXPERIENCE
0-2 2-4 4-6 6-10 Above 10
6. Is there a formal appraisal system in your organisation
Yes No
7. Does your immediate supervisor appraise your performance throughout the year?
Always Frequent Often Sometimes Never

Kindly tick on the desired column.
Strongly Agree Neutral Disagree Strongly
Agree disagree
8. Performance appraisal system is needed in an
organization.
9. Performance appraisal system helps to win co-
operation and teamwork between employees.
10. Performance appraisal system helps in improving
personal skills.
11. Performance appraisal system helps identifying
the strength and weaknesses of the employees.
12. Performance appraisal acts as motivation to be
more productive.
13. Performance appraisal leads to the identification
of hidden potential of the employees.
14. Performance goals set are
realistic/achievable/measurable.
15. PA system improves productivity of employees.
16. Does performance appraisal gives job satisfaction to employees?
Very high High Moderate Low Very low
17. Is there a relationship between retrenchment and PA system in your company?
Highly related Much related Moderately related Somewhat related
No relation

18. In your opinion, PA regarding promotions should be based on?
Seniority Merit Both merit and seniority Attendance Others
19. How are the non-performers managed?
Training Counselling Transfer Termination Other measures
20. The recommendation of performance appraisal is used for?
Termination Extension of probation Consideration for T&D Transfer
Potential for promotion
21. Are you satisfied with performance appraisal system in your organization?
Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied
22. Is there a need for performance appraisal system in your organisation
Yes No
23. Types of performance appraisal system in your organisation
A. Merit Grading C. Other
THANK YOU FOR YOUR TIME AND PATIENCE ☺

Rishi Project Final

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Rishi Project Final

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A STUDY ON PERFORMANCE APPRAISAL SYSTEM AT BPL MEDICAL TECHNOLOGIES

1.1 BACKGROUD OF THE STUDY

THE APPRAISAL OF PERFORMANCE SHOULD BE GEARDED TO:

➢ Improving the ability of the jobholder;

➢ Identifying obstacles which are restricting performance

➢ Agreeing a plan of action, that will lead to improved performance.

MOUNT ZION SCHOOL OF BUSSINESS MANAGEMENT KADAMANITTA 1

➢ Monitoring performance in cost-effective manner, to ensure that previously agreed

▪ ISO 9001 and 2000 certification

▪ Good reputation and brand image

▪ Good Quality policy

▪ Availability of natural rubber

▪ Skilled and efficient work force

MOUNT ZION SCHOOL OF BUSSINESS MANAGEMENT KADAMANITTA 2

▪ Company eco-friendly and socially committed

▪ No political influence from outside

▪ High cost of production

▪ Lack of proper marketing

▪ Unequal promotion policy of management

▪ Increase in quality should decrease productivity

▪ High demand of rubber product

▪ Climate change is affected on the production

▪ Depression in rubber market

▪ Increased use of synthetic rubber

▪ Heavy competition in the market

▪ Diseases in natural rubber plantation

1.2 NEED OF THE STUDY

MOUNT ZION SCHOOL OF BUSSINESS MANAGEMENT KADAMANITTA 3

1.3 STATEMENT OF THE PROBLEM

MOUNT ZION SCHOOL OF BUSSINESS MANAGEMENT KADAMANITTA 4

1.5 SCOPE OF THE STUDY

➢ This study helps to known the level of importance of appraisal system.

1.4 OBJECTIVES OF THE STUDY

➢ To create and maintain a satisfactory level of performance.

➢ To anal.ysis the records in order to determine compensation packages wage structure,

➢ To review and retain the promotional and other training programmers.

1.6 LIMITATIONS OF THE STUDY

MOUNT ZION SCHOOL OF BUSSINESS MANAGEMENT KADAMANITTA 5

➢ The study is only confined to performance appraisal.

1.7 ORGANIZATION OF THE REPORT

Project is presented in eight chapters.

MOUNT ZION SCHOOL OF BUSSINESS MANAGEMENT KADAMANITTA 6

2.1 INDUSTRY PTOFILE

MEDICAL TECHNOLOGY IMPROVES HEALTH OUTCOMES

MOUNT ZION SCHOOL OF BUSSINESS MANAGEMENT KADAMANITTA 7

NEED FOR MEDICAL TECHNOLOGY IN INDIA

MOUNT ZION SCHOOL OF BUSSINESS MANAGEMENT KADAMANITTA 8

2.2 COMPANY PROFILE

MOUNT ZION SCHOOL OF BUSSINESS MANAGEMENT KADAMANITTA 9

MOUNT ZION SCHOOL OF BUSSINESS MANAGEMENT KADAMANITTA 10

MOUNT ZION SCHOOL OF BUSSINESS MANAGEMENT KADAMANITTA 11

2.3 PRODUCT PROFILE

STRESS TEST SYSTEM

SunTech's Automated Stress BP Monitor provide accurate, reliable BP measurements, relieving

MOUNT ZION SCHOOL OF BUSSINESS MANAGEMENT KADAMANITTA 12

MOUNT ZION SCHOOL OF BUSSINESS MANAGEMENT KADAMANITTA 13

• FLIPPER says, “Performance Appraisal is a systematic, periodic and so far, as humanly

• According to Brumbrach (1988, cited in Armstrong, 2000) “performance can be actions

MOUNT ZION SCHOOL OF BUSSINESS MANAGEMENT KADAMANITTA 14

• According to Karol (1996) performance appraisal includes a communication event

MOUNT ZION SCHOOL OF BUSSINESS MANAGEMENT KADAMANITTA 15

4.1 CONCEPT OF PERFORMANCE APPRAISAL SYSTEM

1. Performance appraisal is the systematic description of an employee’s job-relevant strengths