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Performance Appraisal System: A Project Report On
Performance Appraisal System: A Project Report On
PERFORMANCE APPRAISAL
SYSTEM
Prepared For and Presented To
(Specialization-Human Resource)
Submitted by Submitted to
Niwedita Singh Mr.Bharat Bhushan Gaur
H.R & Marketing Mr.Mohd.Waseem
ACKNOWLEDGEMENT
Words often fail to express inner feelings of gratitude and indebtedness to one’s
benefactors, but then it is the only readily available medium through which the
undersigned can express her sincere thanks to all those who are associated with
her work in one way of the other.
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PREFACE
Arriving at an acceptable, simple and valid method for appraising performance
of employees has been a problem engaging more attention of managers now a
days than any other aspect of management.
For a vast organization like Real Estate Organization, the appraisal report is a
vital document for the organizational planning, growth and development and
also for providing satisfaction to the employees. At the same time Performance
Appraisal is a dynamic concept. No system is completely acceptable and
dependable. For this reason within the management ranks, Performance
Appraisal remains to be one of the most debatable topics of Human Resource
Management. Even a well planned and carefully administered appraisal
program does not fetch the expected results. There is, therefore, need for
reviewing the total system and modifying it to accommodate the changing needs
before a particular system outlines its purpose.
The present attempt aims at identifying the characteristic features of the existing
system of Performance Appraisal System in SIG and understanding the extent
of effectiveness towards its objectives with a view to suggesting future
improvement.
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DECLARATION
I ,Niwedita Singh, hereby declare that the project titled “ PERFORMANCE
APPRAISAL” at Samiah International Builders Pvt Ltd. are original and
bonafide work carried out by me during the year 2008-2010 under the able
guidance of Mr. Aftab Hussain in partial fulfillment of the requirement of Post
Graduate Diploma in Business Management at IAMR.
I also declare that this project is a result of my effort and no part of this project
has been published earlier or been submitted as a project by me for any degree
or diploma for any institute or university.
Batch: 2008-2010
Place: Ghaziabad
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OBJECTIVE OF THE PROJECT
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TABLE OF CONTENT
EXECUTIVE SUMMARY 7
ORGANIZATION
SUGGESTION/RECOMMENDATIONS 69-73
CONCLUSION 75
REFERENCES / BIBLOGRAPHY 76
APPENDIX 77-79
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EXECUTIVE SUMMARY
Recipe for success of any organization in today’s environment demands
copying with change. Management plays crucial role in anticipating these
changes and readying the organization to respond appropriately for continued
competitiveness.
Along with these competencies the organization should look after the
employee’s level of performance that is the building blocks of an organization.
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OBJECTIVE OF THE
STUDY
To integrated the company and individual goals through a process of
performance assessment linked to achievement of organizational
objective.
To increase awareness of tasks/targets and the responsibility of
executives at all level to ensure fulfillment of company’s objectives.
To ensure an objective assessment of performance and potential.
To distinguish between differing levels of performance on relative basis
To identify the developmental action to be taken to enhance the
performance of executives.
To facilitate the process of executive/non executive development through
performance planning, self review, performance analysis and two way
communication between appraise and appraiser.
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SCOPE OF THE STUDY
Again, within the area of performance appraisal, the study is confined to the
existing system and the manner in which the system is operating so as to
identify how far it has been effective for promoting personal development and
effectiveness of managerial personnel in Samiah International Group.
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IMPORTANCE OF THE STUDY
The quality of management decision and actions is directly proportional to the
availability and validity of information. The information provides through
performance appraisal significantly enhances management effectiveness in
making decisions that influence the directing and coordinating of human
resources. Therefore, every business ensures existence of an effective, accurate
and continuous process for gathering, analyzing and disseminating information
about the performance of its members. That process is the performance
appraisal. Organization hires employees and rewards them so that they will
provide the effort necessary to achieve organizational objectives and goals.
Healthy improvement in profit can be related to increase in productivity.
Productivity in turn relates directly to performance of all employees in the
organization. A major indicator of the effective use of human resources through
a viable performance appraisal system is the impact of that system on
productivity improvement. Performance appraisal technique is designed,
administered and operated by organizations for the intentional purpose of
observing, measuring and altering employee workplace behavior. A major
reason why employee performance appraisal is such a critical tool is that it is a
control device that influences practically all human resource functions. The
influences of performance appraisal are felt in
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THEORETICAL CONCEPT
Definition
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Salary Increase - Normally Salary increase of an employee depends on how he
is performing his job for his performance there is continuous evaluation either
formally or informally. In small organization generally informal performance
appraisal and in large organization formal performance appraisal has been
undertaken.
Traditional Methods
Ranking Method
Paired Comparison
Grading
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TRADITIONAL METHODS OF PERFORMANCE
APPRAISAL
Ranking Method:-
Paired Comparison:-
Grading:-
In this method the appraiser is forced to appraise the appraises according to the
pattern of a normal curve. The basic assumption in this method is that
employee’s performance level conforms to a normal statistical distribution. This
method is useful to rate job performance and promo ability.
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but the most common method of forced choice contains two statements, both of
which may be positive or negative.
Both these statements are positive but the rater is asked to rate only one, which
is more descriptive of his subordinate’s behavior. This is done to avoid
subjectivity in rating.
Graphic Scale also known as linear rating scale is the most commonly used
method of performance appraisal. In this method, a printed appraisal form is
used for each appraisee; the form contains various employee characteristics and
his job performance. Various characteristics include initiative, leadership,
dependability, cooperativeness, enthusiasm, creative ability, analytical ability,
decisiveness, emotional maturity, etc. depending on the level of the employee.
The rating is done on the basis of scale which is in continuum 5, 4, 3, 2 and 1 in
that order can be used to denote points for various degrees of excellent-poor,
high-low, or good-bad, and so on.
Essay Method:-
Some companies use free essay method, or sometimes, combine this with other
methods. In essay method, the rater assesses the employees on certain
parameters in his own words. Such parameters may be as follows:
In the field review method, an employee is not appraised by his direct superior
but by another person, usually from personnel department. The basic idea is that
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such a person may take more objective view in appraisal, as he is not under
pressure as the superior of the employee may be. The rater, in this case,
appraises the employee based on his records of output and other quantitative
information such as absenteeism, late coming, etc. The rater also conducts
interviews of the employee and his superior to ascertain qualitative aspects of
job performance. This method is more suitable for promotion purpose.
MODERN MEHTODS OF PERFORMANCE APPRAISAL
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Motivation: - Motivation is taken to man as a willingness to expand energy to
achieve a goal or reward. It is a force that activates a dormant energy and acts in
motion the action of the people .It is the function that kindles a burning passion
for action among the human beings of an organization.
Promotion: - Performance appraisal has duality of objectives evaluation of an
employee in his/her present role & their development for doing the present job
in better way as well as to develop him for the higher order job. The
performance of this higher order job depends on their potential in the light of
the requirements of the new job. Thus, to determine an employee’s likelihood to
succeed in the new job, potential appraisal is carried.
Communication:- Performance appraisal helps clear communication between
the superiors and their subordinates. Communication helps in giving feedback
to managers on their performance and thus providing satisfaction to the
executive.
EXCUTIVE PERFORMANCE APPRAISAL SYSTEM
The Executive Performance Appraisal System will be used to assess the
performance of executives and to plan for their development.
APPRAISAL PROCESS
Self – Appraisal
Performance Review and planning
Performance Assessment
Development plan
Evaluation and Final grading
SELF APPRAISAL
Tasks/targets indicating a few key performance Areas will be set for each
appraisee by his reporting Officer in consultation with the former , This will be
communicated to the appraisee by 31st March of every year , before the of the
assessment year. The self-appraisal form will be filled up by the appraisee twice
a year in the first week of October and then in the first week of April.
The appraisee will factually report on the following, in the Self Appraisal every
six months:-
Tasks/targets fulfilled
Constraints faced
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Facilitating resources
In addition, the appraisee will indicate the following while filling up the self
appraisal at the end of the assessment year.
During the PRP session, the Reporting Officer will ensure a conducive climate
for discussion.
In the PRP session, the Reporting Officer and the appraise will discuss:
Developmental needs.
The outcomes of PRP discussion will be noted in the specific form and signed
by both the Reporting Officer and appraise.
PERFORMANCE ASSESSMENT
The performance of the appraisee will be assessed after the PRP is held. The
reporting officer will assess the appraisee on a five point rating scale on the
following factors. Each factor will carry a weight as indicated below
E1 – E4A
Factors Weight age
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Performance Factors
1. Quantity of output 2
2. Quality of output 2
3. Cost control 2
6. Discipline 1
.Potential Factor
1. Communication 2
5. Team-spirit 1
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6. Development and quality of assessment of, 2
Subordinates
Potential Factors
1. Commitment and Sense of responsibility 2
The Reporting Officer will make use of the definitions of the rating scales for
each factor which will be indicated in the performance Appraisal
One of the outputs of the system will be that the appraises will be classified into
the following grades in order of merit O A B C
The sum total of the factor score given by the Reporting officer will indicate the
category that the Reporting officer would like to put the appraises in. The
following range of scores may be used as a guide for the indicative grades of the
Reporting Officer.
84 and above - O
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20 to 21 - C
Note: For example if the total score given come to 55, it indicates that the
appraise is suggested to be finally graded as B.
A 20%
C 25%
The Reporting officer may find some of the appraises not fit for promotion due
to their poor performance. In such cases the Reporting Officer may recommend
that the appraise may be declared as “Non-.Promo table” for the ensuing one
year.
The Reporting Officer will fill a summary sheet indicating the overall factor
score of the appraises reporting to him, and send same to the Reviewing
Officer. The Reporting Office (O) will make his individual assessment
independently in the name pattern as listed out for the Reporting Officer.
PRIMARY GRADING
The Personnel Department will help in compiling the total scores based on the
assessment on each individual factor by the Reporting Officer, Reviewing
Officer and the Reporting Officer (O) taking into account the weight ages
attached to each Individual factor and the weightage given to the Reporting
Officer, Reviewing Officer and Reporting Officer (O). This will be calculated
giving 50% weight age to the score given by Reporting Officer, the weightage
to Reporting Officer (O) will be 25% & the weightage given by Reviewing
Officer is 25%.
The Total factor scores will then be arranged in descending order for an
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Appraisal group and the primary grading [10%-O, 20%-A, 45%-B and25%-C]
will be worked out. The appraisal group will consist of appraises belonging to
sections/departments functionally related to each other.
The factor scores given by Reporting Officer, Reporting Officer (O) and
Reviewing officer to each appraisee.The average factor score of each appraisee
and the indicative grade thereof the primary grading of each appraisee.
The PRC will study the distribution pattern of primary grading and the
indicative grades vis-à-vis the factor score appraises under consideration. The
PRC will harmonized grades of some of the appraises if needed, to remove
disparities, if any, in ratings.
However, the moderations may not be of more than one stage up of down with
respect to the primary grading. The PRC will decide the final grading ensuring
the distribution of appraisee the minutes of the PRC meeting will be signed by
Chairman and all members. The final assessment sheet in the Appraisal for will
then be filled up and signed by chairman or any member of PRC.
The PRC may, taking into account the recommendation of the Reporting and
Reviewing Officers, declare some of the executive in the category C as non-
promotable for the ensuing one year.
DEVELOPMENT PLAN
The training needs of the appraisee will be indicated by the Reporting and
Reviewing Officers. The training needs should have a linkage to the
development plan discussed by the Reporting Officer with the appraisee during
the performance review and planning discussion.
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Both the Reporting Officer and Reviewing Officer will indicate job rotation /job
suitability of the appraisee. The Personnel / Training department will utilize the
training needs sheet to develop suitable training plans for the appraisees in
consultation with the concerned heads of department or higher authorities.
Personnel Department will make a job rotation plan based on comments of the
Reviewing Officer and implement the same in consultation with the concerned
heads of departments or higher authorities.
APPRAISAL CALENDAR
The appraisal calendar indicating dates on which various actions are to be/
initiated and completed will be given in the performance Appraisal Guidelines.
APPRAISAL FORMS
Suitable appraisal formats will be used for making assessment of executives.
TENURE:-
The policy will come into force from a date notified by chairman, SIG remain
in force for a period as decided by him the company reserves the right to
withdraw the system at any time without Notice Chairman, SIG is authorized to
approve the details under the policy and the appraisal formats for
implementation of the same. He is also authorized to amend or modify the
system, as and when required.
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EXECUTIVE PERFORMANCE APPRAISAL
SYSTEM GUIDELINES
EXECUTIVE PERFORMANCE APPRAISAL SYSTEM
COMPRISES OF:
PART A Self-appraisal
PART B Performance Review planning
PART C Performance Assessment
PART D Development Plan
PART E Final assessment
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Cooperation etc. and (e) External environment viz. Government policies,
improved economic situation, poor image of competitors etc.
While completing the annual self appraisal form in the month of April every
year, the appraisee should also record the highlights of his performance,
major strengths and development needs.
Highlights of performance should include target achieved beyond stated
Norm, innovative work processes, cost reduction measures etc.
Developmental needs should mention specific areas, which in the appraisee’s
opinion; need to be improved for enhancing the performance. These may
include suggestions for training, job rotation, exposure in other
areas/functions etc.
After completing the self – appraisal form as per guidelines mentioned
above, the appraisee should return the same to the Reporting officer duly
signed.
The Reporting Officer will study the self – appraisal and call the appraisee
for Performance Review and Planning.
The Personnel department will analyze the constraints, facilitating resources,
suggestions for improvement etc, department-wise and send them to the
respective Heads of Departments.
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Identify and finalize the thrust areas for the next six months/one year,
resources required, constraints to be overcome and a mutual understanding
of expectations from each other.
The Reporting Officer must record the highlights of the discussions in the
structured format provided and sign the form. This should be read and signed
by the appraisee also .The date on which the PRP was held should be
recorded.
Each factor has been assigned a weight to indicate its importance in the overall
assessment.
Factor score will be arrived at by multiplying the scale point (i.e. 1,2,3,4 or 5)
with the assigned weight (i.e. 1 or 2) of the factor. The aggregate of factor
scores will be the total factor score.
The Reporting Officer and the Reviewing Officer should note that final
distribution of executives will be in the following order of merit:-
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20%- A
30%- B
40%- C
68 to 83 - A
The assessing authority will not however record the grade i.e. O, A, B or C in
the form.
The Reporting Officer, after completing the performance assessment part, will
also complete the summary sheet in the format and it to the Reviewing Officer
along with the appraisal form.
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Higher Authority above the Reviewing officer may, by exception, call for the
appraisal reports and record his/her comments on the overall
performance/potential of the appraisee. A separate page is provided in the form
for such comments, in case of appraises in the grade of E-7/E-8 the chairman
may call for reports to record his comments.
DEVELOPMENT PLAN
Development of executives imagined through training, job rotation /
enrichment and counseling /coaching. While indicating training needs the
assessing authorities may keep the following in mind:
Training needs should be indicated for executives whom the assessing authority
recommends to be trained in the ensuing year. Information regarding training
programmes attended by the executives in the last two years may be obtained
from the Training department. Please also note that the Training department will
normally plan to train about 30-40% of the executives in one year.
Training needs and other development plans should be linked to the appraisee’s
present area of responsibility, future assignments/needs and major strength/
weaknesses.
FINAL ASSESSMENT
Final assessment will be done by a performance Review committee (PRC).The
performance Review Committees will be suitable constituted in such that the
Head of he Department to which the assess belongs or the authority above the
Reviewing Officer is included in the committee. . This should be formalized
with the approval of respective chief Executive of the Organization.
For each appraisee there will be a maximum of 3 total factor score awarded by
the Reporting Officer (O) and Reviewing Officer.
Weightages have been indicated for the assessment of the namely 50% for the
Reporting Officer, 25% for the Reporting officer (O), and 25% for Reviewing
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Officer. If there is no Reporting Officer (O), the weight age for the Reviewing
Officer will be 50%.
By multiplying the total factor given by the assessing authorities with the above
weightages (i.e. 0.5 or 0.25 as the case may be), the weighed score for
Reporting Officer, Reviewing officer and Reporting Officer (O) will be
obtained. A total of this will give the average appraisal score.
52-67 - B
20-51 - C
All executive within an appraisal group will brew listed in descended order on
the basis make of the average appraisal score secured by them. An Appraisal
group will consist of grades belonging to department/sections related to each
other.
Each appraisal group will be finally evaluated by the PRC. The chairman of
the PRC concerned will ensure grouping of executives based in related
function.
It will be ensured that such grouping will be done only when the departments
are related to each other.
The first 10% the executives of the appraisal group listed in descending order
based on average a score, will be categorized as ‘O’, 20% in category “A”, The
next 45% as ‘B’ and last 25% as ‘C’ this is the primary grading.
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The PRC will be given the following inputs for every executive in an appraisal
group.
Primary grading based on the specified distribution of the score & the overall
performance of departments.
PRC may declare executive non-promo table, for the ensuing one year, out the
category ‘C’ based on the recommendations of the Reporting and Reviewing
Officers. PRC will also record the reasons for declaring the appraise non-promo
table.
PRC will also make job rotation plans for the executives.
Once the final grading is complete, the same should be entered in each
executive’s appraisal form and duly signed by Chairman or a member of the
PRC.
Based on the decision of the PRC, the personnel Department will ensure
communication of the non-promo table ratings and the reasons thereof to the
appraisers(s) concerned.
The assessment year is from 1st April to 31st March. The executives rated as
“non-promo table” will not be considered for promotion for the ensuing one
year i.e., the financial year following the assessment year.
The executive(s) rated as non-promo table may appeal for review of the
assessment.
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The appeal for review should be made to the Chairman of the PRC within 10
days of receipt of communication from Personnel department regarding non-
promotable rating.
The PRC may review and either reverses or confirms its earlier decision In case
PRC confirms the earlier decision will be final and binding on the executive
concerned. If PRC reverses the earlier decision, the case is not sent to the chief
Executive. PRC will consult the reporting officer in case of executives in E-6
and above, such appeals will be made to Chairman’s SIG through the chief
Executive concerned. The chief Executive will give his comments and forward
the appeal to the chairman. The decision of chairman, SIG will be final and
binding.
Who is to rate?
In most situations, the rater is the immediate superior of the person to be rated.
Because of frequent contact, he or she is most familiar with the employee’s
work. In addition, any organizations consider that it is essential to support the
leadership and authority position of the supervisor by considering employee
appraisal as an integral part of the supervisory task. Supervisor ratings are often
reviewed and approved by higher management, thereby maintaining
hierarchical control over the appraisal process. If more involvement is deemed
desirable, the appraisal process can be undertaken by a group of raters.
Members of the group can be superiors, peers, and subordinates. If they are all
superiors, group appraisal ventures only a small distance from classical
management theories. If they are all subordinates, it involves a considerable
move toward behavioral theories. The final possibility, which is most
behavioral in orientation, is to allow subordinates to rate themselves. The major
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values lie in the development and motivation areas, it being claimed that this
approach (1) results in a superior upward low of information, (2) forces the
subordinates to become more personally involved and to do some systematic
thinking about self and work, (3) improves communication between superior
and subordinate, in that each is given more information by the other when
disagreements are discovered, and (4) improves motivation as a result of greater
participation. If the basic participatory management approach continues to
grow, it is certain that the self rating aspect of the process will also
become more widespread.
What to rate?
What of the performance appraisal consists in appraising not supervisory
employees for their current performance, and managers for future potential? It
also includes evaluation of human traits.
Why to rate?
The ‘why’ of an appraisal is concerned with (a) creating and maintaining a
satisfactory level of performance of employees on their prevent jobs; (b)
highlighting employee needs and opportunities for personal growth and
development; (c) Aiding in decision making for performance related aspects
like promotions, transfers, lay offs and discharges; and (d) promoting
understanding between the supervisor and his subordinates.
When to rate?
The usual schedule in the timing of ratings is twice yearly. New employees are
rated more frequently than older ones. However, practices vary from
organization. In Indian context, generally the employers go in for once year
appraisal since the pressure of other duties probably prevents them from going
in for more frequent appraisals.
Where to rate?
The ‘Where’ indicates the location where an employee may be evaluated? It is
usually done at the place of work or office of the supervisor. Informal appraisals
may take place anywhere and every where, both on the job and off the job.
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The ‘how’ indicates the different methods used in performance appraisal.
PROBLEMS/BARRIERS/LIMITATIONS
Ambiguity: -
This error occurs when factors used to be described are not clear. It should be
very clear so that all maters have the same sort of behavior in mind. Unless, all
raters agree on what such factors like quality & quantity of output mean, their
final ratings simply cannot be compared.
Insufficient evidence: -
The boss frequently gets a limited & often a distorted view of subordinate’s
performance. The subordinate’s ability to get along with the boss may have a
greater impact on his/ her rating than does actual performance on his job. Rating
committees naturally help to reduce this problem.
Differing Perception:-
Often raters tend to rate the subordinates similar to themselves in background
values & styles of behavior higher than they rate subordinates with dissimilar
life style (the similar- to- me -effect).
Faulty Assumptions:-
Because of the faulty assumptions of the parties concerned, superior and his
subordinate in appraisal system it does not work properly or objectively.
Managers naturally wish to make fair & accurate appraisal of subordinates is
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untenable. These assumptions are due to psychological characteristics, technical
deficiencies. Managers often take a particular appraisal system as perfect. They
sometimes assume that personal opinion is better than formal appraisal.
Psychological Blocks:-
The utility of performance appraisal depends upon the psychological
characteristics of managers. There are several psychological blocks when are
manager feeling of insecurity, appraisal as an extra burden, their being
excessively modest or skeptical, disliking of resentment by subordinates,
disliking of communicating poor performance to subordinates. Thus managers
do not tend to become impartial in evaluating their subordinates.
Technical pitfalls:-
The main technical difficulties in appraisal fall in two categories -criterion
problem & distortions that reduce the validity of results.
1) Criterion Problem: -
A criterion is a standard of performance the manager desires of his subordinates
& against which he compares their actual performance. Criteria are hard to
define in measurable or objective terms. Ambiguity, vagueness & generality of
criteria are difficult hurdles for any process to overcome.
2) Distortions:-
Distortions occur in the form of biases and errors in making the evaluation. May
be introduced by the evaluator consciously or unconsciously. An appraisal
system has the following possible distortions.
3) Halo effect:-
This distortion exists where the rater is influenced by rater’s one or two
outstandingly good (or bad) performances & he evaluates the entire
performance accordingly. It also occurs where the rater’s judgments is
influenced by the work team or informal group with which a subordinate
associates. If the group is not well liked, this attitude may work in the rating of
the individuals on it, apart from the actual performance.
4) Central Tendency:-
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This error occurs when the rater marks all or almost all his personnel as
average. He fails to discriminate between superior and inferior persons. It arises
from the rater’s lack of knowledge of individuals he is rating, or from haste,
indifference or carelessness.
5) Constant errors: -
Some rater habitually rates everyone high, others tend to rate low. Some rate on
potential rather than on recent observed performance. The results of the two
raters are hardly comparable.
1) Reporting Officer: The executive next higher in the rank and grade but
not below the level of Dy. Manager and to whom the executive being assessed
reports.
2) Reviewing Officer: The executive next higher in rank and grade to the
Reporting Officer and to whom the reporting Officer reports.
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generally at the end of every year, by the employee’s immediate superior. The
report highlights the strengths and weaknesses of the subordinate. The report is
not data based. The impressions of the superior about the subordinate are
merely recorded there. It does not offer any feedback to the appraisee. The
appraisee is not very sure about why his ratings have fallen despite his best
efforts, why others are rated high when compared to him, how to rectify his
mistakes, if any; on what basis he is going to be evaluated next year, etc. Since
the report is generally not made public and hence no feedback is available, the
subjective analysis of the superior is likely to be hotly contested. In recent
years, due to pressure from courts and trade unions, the details of a negative
confidential report are given to the appraisee.
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RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
According to Clifford Woody research comprises defining and redefining the
problems, formulating hypothesis or suggested solutions, collecting, organizing
and evaluating data, making deductions and reaching conclusions whether they
fit the formulating hypothesis.
This part of the study deals with methodology used in present investigation. For
gaining new knowledge in a particular field it explains the nature of study,
details of sample design, Collection of data, Analysis of data through statistical
tools and interpretation of the data collected.
RESEARCH SUBJECT
The first and foremost step is to select and define the topic of study. Among
various issues what occupies the central position in an organization is the
effective utilization and maintenance of human resources for achievement of
organizational objectives and while managing human resources, the problem of
carrying out performance appraisal of executives stands out very clear. This
topic of study takes into account measuring the existing system of performance
appraisal so as to identify the characteristics features of the same and to
understand the effectiveness of the system towards its objectives with a view to
suggesting further improvements. Thus, the topic of study is “Performance
Appraisal System” at Samiah International Builders Pvt Ltd. (SIG)
RESEARCH DESIGN
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A Research Design is the conceptual structure within which the study is to be
conducted. It constitutes the Blue print for Collection, measurement and
analysis of data.
NATURE OF STUDY
This study is descriptive and Qualitative in nature i.e. which includes Survey
involving executives & non-executive of SIG taking into consideration
attitudes, opinions, behavior and performance regarding their job.
PREPARATION AND DESIGN OF QUESTIONNAIRE
A Questionnaire was designed for the study and measures the performance level
of executives & non executive at SIG with the help of available literature and
project guide. The questions relating to general information of employees,
awareness on various aspects of their job and policies and approach of
management were put. Both closed and open-ended questions were included.
Also, all questions were given in a proper sequence and simple language in
order to give a clear picture of the situation given and to avoid any
misunderstanding to the respondents. In the questionnaire, suggestions of the
employees were requested if they want any improvement in the present
appraisal system technique being followed up.
SAMPLE DESIGN
1-Universe:-
The first step in developing any sample is to clearly define the Universe (set of
objects) to be studied .The Universe in the present study is restricted to the total
number of 300 employees in the organization.
2. Sample Size:-
In order to make sample representative of the population, it was decided to
collect information from a sample size of 50 employees including both technical
and non technical employees.
o Secondary Sources
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Primary Data: Primary data was collected by a way of Questionnaire
designed for both technical and non technical employees of SIG. The
questionnaire content questions which include awareness of the employees on
various aspects like organizational objectives, the performance appraisal
technique being followed. The collection of primary data was accomplished at
different departments after a personnel visit to all the departments:
o Works
o Services
o Construction
o Maintenance
o Operations
o Information Technology
Lastly, after analysis of data, the findings of the study are studied and
represented in a logical and precise manner so as to arrive at a conclusion of the
study and to provide any recommendations and suggestions on this basis.
STRATA CLASSIFICATION
The strata classification in general has been done in the following ways:
- Strata Assessment system
Executive Appraisal system process
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In this project we shall discuss about the executive & non executive
performance appraisal system in Samiah International Group.
INTRODUCTION ABOUT
SAMIAH INTERNATIONAL
BUILDERS PVT. LTD.
We at SAMIAH are proud to be one of the leading Promoter and Builder in
Northern India and having developed more than 10 million sq. ft. of area into
Real Estate Properties have formed everlasting relationships with our clients &
investors built through trust, respect, outstanding service and commitment to
mutual success.
Today SAMIAH is all set to expand its real estate operations and create edifices
that will be the benchmark of architectural finesse. With more than 15 million
sq. ft. residential and commercial area under development in various projects
across 9 cities & 4 States in India we invite you to be part of the success story.
At SAMIAH we firmly believe that the pride and joy lies in improving the
quality of life. SAMIAH does meet customer aspirations by adding value
through innovative ideas, high end technology, design and aesthetics. Our strict
adherence to quality and commitment has helped us stand apart from the
competition.
The journey since our inception has been smooth and satisfying. SAMIAH has
expanded into the whole of north India and got recognition from blue-chip
business houses as a reliable and customer oriented organization. With
thousands of satisfied customers and in-hand projects worth 2085 crore,
39
SAMIAH International Group now enjoys its presence in Delhi & NCR, Hapur,
Rudrapur, Nainital & Lucknow. Our group housing projects, townships, resorts,
hotels, cottage, independent floors & villas have got a greater acceptability with
the customers. We undoubtedly aspire to be among the top real estate
companies in the near times to come.
Special Achievement
Amongst the first real estate developers to be awarded with ISO 9001-
2000 certification
Registered as a Category ‘A’ Builder in Uttaranchal and Uttar Pradesh
Only real estate company to get an NOC from the Govt. of Uttaranchal
for its township in Rudrapur
Only Builder to have a consortium agreement with Air Force Naval
Housing Board to Develop townships & Group Housing in Uttar Pradesh
Winner of Best Upcoming Township in Uttrakhand for NRI LAKE
CITY, Rudrapur project at INDIAN PROPERTY AWARDS 2007
Mr. Jamil A Khan, the founder & CMD of SAMIAH International Group, under
whose dynamic leadership the company has grown as an eminent conglomerate,
is known for his versatile personality. He has won many laurels for his
outstanding contribution to the society. Mr. Khan’s selfless service to the nation
and its people helped him win National Integration Award for Peace &
National Integration and National Award for Outstanding Services. He has
proved his mettle as a dynamic entrepreneur and won Sir Syed National
40
Award for Best Entrepreneur in the year 2001. He was also conferred
‘Bharat Shiromani Puraskar’ as the Best Entrepreneur.
With an ethnic touch to give it a modern villege look, Media Villege Gr. Noida
accommodates people from across the media. it earns a distinct image for
Samiah for fulfilling the housing needs of journalist. Provided with all modern
amenities, this villege of 115 villas is a posh colony of greater Noida.
41
Scheduled Date of Completion June 2008
Current Status
Structure work of All Categories of
Villas Complete
Finishing Work going on
Area 5790
Area 3900
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Lawn Area 430
Area 2920
Cupboard Yes
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Cubical Steam Bath At Extra Cost
44
Name of the Project SUNNY FOREST
Location Bhimtal - Saattal Valley
Date of Launching 2007
Scheduled Date of Completion
Phase-I – 50 Villas
Construction of Villa Starts once Booking
Amount is remitted to the company &
Possession is handed over within 18 Months
from the date of booking
Total No. of Villas & Flats Sunny Deluxe - 25 Villas
Sunny Cottage - 25 Villas
1200 Sq. Ft. - 10 Flats
1000 Sq. Ft. - 10 Flats
800 Sq. Ft. - 10 Flats
Current Status Ground Leveling Work being done
Accommodation/ Prince
Range Premium Villas - 3 BR (1800 Sq.Ft) - Rs.
5,450.000
Deluxe Villas - 2 BR (1800 Sq.Ft) - Rs.
3,950,000
Power Back Up Yes
R.O. Water Facility Yes
Security System Gated Complex with 24 Hours Security and a
security guard room at entrance gate
Club Yes; Separate Space for Health club & DVD
45
Theater, Separate Complex for indoor games
such as Badminton, Billiards, TT, Squash,
etc.
Distance Chart
Delhi – 290 Km
Nainital – 14 Km
Bhimtal – 3 Km
Saatal – 8 Km
Nearest Railway Station Kathgodam - 35 Km
Nearest Airport Pant Nagar – 65 Km
Altitude 5500 Ft. – 6600 Ft. Height from the Sea
Level
Project USP Heavenly located & aesthetically designed
amidst ravishing natural beauty of Nainital in
the midst of Bhimtal Saattal Valley near to
the Emerald Lake of Sattal.
46
the fast developing tourism sector in the region, a whole new world is waiting to
be explored by the tourists from all over the world.
Sunny Lake is located on Bhimtal - Saatal Road over looking the picturesque
lush green Bhimtal Valley and the emerald lake with an island. The very
existence of Sunny Lake is inspired by the raw and ravishing natural beauty of
every nook and corner of the region. All landscaped surroundings at Sunny
Lake are thoughtfully planned and aesthetically nurtured with a unique garden
of medicinal and aromatic Himalayan herbs in the centre. Also, the logging area
is designed amidst oak trees, noted for its invigorating and rejuvenating effect
on human body.
Current Status Construction in full Swing; The complex is
47
fully developed; Internal Roads have been
made; 24 Hour Security service available
Accommodation/Price Range Villa
Mount Villa - 3 BR (2000 Sq.Ft) - Rs.
7,139,000
Mount Cottage - 2 BR (2000 Sq.Ft) - Rs.
5,445,000
Flat
2 BR (1200 Sq.Ft) - Rs. 3,300,000
3 BR (1000 Sq.Ft) - Rs. 2,200,000
48
NRI Lake City Rudrapur
49
Sample Villas Completed.
Construction Central Lake nearing completion
Work on internal roads, pole lights & plot
demarcation in full swing
Accommodation/Price Range
RoseVille(115 Sq.Yard)
2 BR (2110 Sq.Ft) - Rs. 4,400,000
Towns Ville (200 Sq.Yard )
2 BR (1260 Sq.Ft) - Rs. 2,585,000
Structure (Villa & Flats) Earth Quake Resistant
Flooring (Villa & Flats) Vitrified Tiles
Modular Kitchen Yes
Club House Yes
Swimming Pool Yes
Utilities Separate space enmarked for School, Nursing
Home & Police Station
Security Walled city with massive main-gate with hi
tech security arrangements
Commercial Area Separate space enmarked for Mall, Mutiplex
& Business Park
Project USP On main Kashipur Road, Just 3 Km FROM
Railway Station, 3.6 KM from Indira Chowk
For More Details Contact 9873906860, 9873906861
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SAMIAH Garden City, NH-24, Hapur, offers a paradise life in a pollution-
free ambience. It’s a beautifully landscaped integrated township with villas
where 25% of the total area has been reserved for forest. Besides, the township
boasts of an amusement park of international standard that will attract leisure
seekers & tourists from all across Northern India
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entrance gate with close circuit camera,
emergency alarm, intercom arrangement and
video conferencing facilities
Reception Hall Reception hall with video conferencing
facilities
Club Club building three storied 15000 sq. ft. area
(rooms for billiards / snooker / card / carom)
with swimming pool, tennis court, separate
space for health club, mini theater in club
building and separate hall for women’s club
Swimming Pool Yes
Car Washing Points Car washing points at different suitable places
with perforated floors
LPG Network Payment by meter to oil companies
Green Lawn and Wooden
A very decorated lawn around club
Pavilion
Separate kids’ park with Decorated as per kids needs and low depth
splash splash
Fountain Beautiful fountain at entrance
Elevators One four passenger lift even in S+4 storied
building (1 BR & 2 BR apartment), two eight
passenger lifts even in S+6 stories building (3
BR apartment)
Broad band / cable T.V. Cabling and conducting shall be provided for
B.B. connection
Project USP On Main NH-24; 35 Minute Drive From
Noida; Most Affordable Premium Group
Housing Project in NCR Region
For More Details Contact 9873906860, 9873906861
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Singapore has always fascinated the connoisseurs of good living. A dynamic
dream city rich in contrast and colour with a harmonious blend of
culture, cuisine, arts and architecture. Dotted with broad tree lined
ornamental avenues, lush gardens and parklands. Booming with exotic
locales, world’s best and largest shopping malls, multiplexes and business
centers. Moving on world class land and air transport facilities. Providing best
educational and medical facilities. Immense opportunities with global
companies. The thrill of horse racing. The magic of amusement parks and the
adventure of Night Safari with nature camps and rare animals. A grand PGA
golf course to Tee Off.
The convenience and safety of piped Natural gas, the world class high tech
facility of an electronic library. In a nutshell, Singapore epitomizes life at its
Best. Now, a select few can enjoy all the above good things and much more in
life right here in India by owning one of the 122 exclusive Singapore
Residency apartments in Greater Noida, the most happening and
internationally planned places around Delhi. Singapore Residency, Greater
Noida.
53
Current Status Construction in full Swing; 3 Bedroom Sample
Flat Ready
Accommodation/Price 3 BR, A-1 (2430 Sq.Ft.) - Rs. 8,337,330
Range 3 BR, A-2 (2430 Sq.Ft.) - Rs. 8,405,950
2 BR, B-1 (1653 Sq.Ft.) - Rs. 5671,443
2 BR, B-2 (1610 Sq.Ft.) - Rs. 5,523.910
1 BR, c-1,2,3,4 (1180 Sq.Ft.) - Rs. 4,085,589
Power Back Up Yes
R.O. Water Facility Yes
Security System Finger print Lock on Main Door for Hi Tech
Security and a security guard room at entrance
gate with close circuit camera, emergency
alarm, intercom arrangement and video
conferencing facilities
Reception Hall Reception hall with video conferencing
facilities
Club Yes; Separate Space for Health club & DVD
Theater, Separate Complex for indoor games
such as Badminton, Billiards, TT, Squash, etc.
Swimming Pool 2 Swimming Pools
Car Washing Points Car washing points at different suitable places
with perforated floors
LPG Network Gas pipeline connected to each kitchen
Broad Band Cabling and conducting shall be provided for
Broad Band Connection
Stilt Area Singapore Style Theme Based Conservatory
Garden
Separate kids’ park with Decorated as per kids needs and low depth
splash splash
Elevators 2 capsule lifts in each tower
Broad band / cable T.V. Cabling and conducting shall be provided for
B.B. connection
Project USP 122 ultra luxury centrally air conditioned studio
& 2/3 bedroom apartments with individual
climate control panels. 2 swimming pools,
capsule lifts, double basement, Singapore style
conservatory garden, Italian marble in each flat
with wooden laminated flooring in each
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bedroom, jacuzzi with cubical shower panel &
steam bath.
For More Details Contact 9873906860, 9873906861
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Price Range Rs 35.03 Lacs to Rs 1.15 Cr
Power Back Up Yes (3 KVA in each flat)
R.O. Water Facility Yes
Security System Finger print Lock on Main Door for Hi Tech
Security and a security guard room at entrance gate
with close circuit camera, emergency alarm,
intercom arrangement and video conferencing
facilities
Modular Kitchen Yes
Cupboard One Elegant Wooden Cupboard in each Bedroom
Flooring Vitrified Tiles
Shower Cubical Cubical with Shower Panel in One Bath
Cubical Steam Bath Only in Category H, FD, GD & HD Flats
Wooden Flooring In Master Bedroom
Reception Hall Reception in each tower with video conferencing
facilities
Club Yes; Separate Space for Health club & DVD
Theater, Separate Complex for indoor games such
as Badminton, Billiards, TT, Squash, etc., Tennis
Court, Space for Library
Swimming Pool Swimming Pool
Car Washing Points Yes
LPG Network Gas pipeline connected to each kitchen
Broad Band Cabling and conducting shall be provided for Broad
Band Connection
Separate kids’ park with
Decorated as per kids needs and low depth splash
splash
Elevators Capsule lift in each tower
Meditation Centre Yes
Project USP 364 Premium 2 / 3 / 4 BR Apartments &
Penthouses in the heart of VIP Sector – PHI 4, 2
KM from Pari Chowk & 1.5 KM from TAJ
Expressway
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Theater, Separate Complex for indoor games such
as Badminton, Billiards, TT, Squash, etc.
LPG Network Gas pipeline connected to each kitchen
Broad Band Cabling and conducting shall be provided for
Broad Band Connection
Modular Kitchen Extra Cost
Cupboard Extra Cost
Elevators Yes
Horticulture High class garden design with running water
bodies
Outer Look Ornamental structure in elevation based on
English architecture
Project USP 120 luxury 2/3 bedroom apartments in the most
upcoming area of Lucknow - Hardoi – Sitapur
Bypass, IIM’s Road (Opposite Lucknow’s biggest
landscaped greens, The Joggers Park)
For More Details Contact 9873906860, 9873906861
58
DATA PRESENTATION AND
ANALYSIS
Q1. Do you think that Performance Appraisal is essential for the employees in
The Company?
a) Fully
b) Partially
c) Not at all
Not at all
Partially 0%
20%
Fully
Partially
Not at all
Fully
80%
It shows 80% of the employees agree that performance appraisal is essential for
the employees of the company and 20% of the employees partially agree.
Currently annual appraisal system in SIG is carried out for the employees at
executive levels and above only. The target set may be reviewed quarterly so
59
that strengths and weaknesses, if any, can be assesses and remedial measures
suggested accordingly.
Not at all
Yes
27%
27%
Yes
Partially
Not at all
Partially
46%
60
Considerable amount of time is spent for getting the appraisals done as per the
existing system. The company should improve the existing system by designing
and implementing departmental performance review system on a quarterly
basis.
Completely
Not at all
27%
27%
Completely
Partially
Not at all
Partially
46%
Many Real Estate companies have implemented the self-appraisal system. This
has proved helpful in identifying the needs for in-house group
discussions/counseling methods/training and development programs.
61
Q4: Does your supervisor give you effective feedback on a regular basis?
a) Yes
b) Depends on the employees
c) Not at all
100 Yes
80
Depends on the
60 employees
Percentage Not at all
40
20
S1
0
Yes Depends on the Not at all
employees
It is clear in the graph that 100% of the employees say that the superior gives
them effective feedback on a regular basis.
Any company should give feedback to the employees periodically. They can
also extend proper diagnostic tips/ counseling methods at the required level.
Q5: Do you think that performance appraisal is the tool that improves
employees’ performance level?
a) To a great extent
b) To some extent
c) Not at all
62
Graph5: Performance appraisal improves employees
perfromance level
Not at all
To some extent
8%
18%
To some extent
To a great extent
Not at all
To a great extent
74%
The graph shows 74% employees agree that up to a great extent, 18% say that to
some extent and 8% of the employees believe performance appraisal not at all
improves performance appraisal.
Currently the company’s existing appraisal system is on annual basis. This may
be reviewed on a quarterly basis, which will help in assessing the strengths and
weaknesses of executives and role modifications can be suggested accordingly.
63
Graph6: Capability of attaining the set goals
100%
90%
80%
70%
60%
50%
40% Consistently
30% Occassionally
Never
20%
10%
0%
Consistently Occassionally Never
Opinion of employees
The graph shows 100% of the employees are consistently capable of attaining
their set goals.
The target achieved by the employees may be vis-à-vis the target achieved last
year. The company should endorse proper diagnostic mapping for role
modifications/ training and development needs.
Q7: To what extent is the SIG making progress towards its mission and goals?
a) To a great extent
b) To some extent
64
c) No opinion
No opinion
To some extent
0%
18%
To some extent
To a great extent
No opinion
To a great extent
82%
Q8: Do you get merit raise when the performance evaluation indicates that
you are meeting the set standard on the job?
a) To a great extent
b) To some extent
65
c) Not at all
Not at all
10%
To some extent
20% To a great extent
To some extent
Not at all
To a great
extent
70%
70% of the employees say up to a great extent they get merit raise, 20%
employees say that up to some extent they get merit raise and minority of 10%
employees agree they do not get any merit raise.
Apart from the merits awarded based on the performance indicators; HR should
introduce system for proper recognition rewards to such employees.
Q9: Do your co-workers and superiors help you to cope up with your poor
performance?
a) To a great extent
b) To some extent
66
c) Not at all
Not at all
0%
To some extent
To some extent
47%
To a great extent To a great extent
53% Not at all
Q10: In your opinion to what extent are the superiors responsible for the
progress of SIG?
a) To a great extent
b) To some extent
67
c) Not at all
To some extent
Not at all 28%
35%
To some extent
To a great extent
Not at all
To a great extent
37%
68
After meeting the executives & non –executive of different levels (viz E1 to E10
grades) of SIG interacting with them, the following information and facts were
gathered:-
CONSTRAINTS
General Constraints faced by superiors (Appraisers) while doing performance
appraisal for appraisee (Executives):-
69
SUGGESTIONS AND
RECOMMENDATIONS
SUGGESTIONS/RECOMMENDATIONS
In any performance appraisal, due consideration must be given to the ethics of
appraisal, failing which many organizational problems may crop up and the
very purpose of appraisal may be defeated. The following are some suggestions
and recommendations for appraisees, appraisers and reviewers.
I. For Appraisees:
Following are five keys to help employees to overcome a bad appraisal:
1. Employees should complete a draft of the Performance Appraisal
Form or Narrative Form. They will be surprised at how much they
have accomplished.
3. Before going into a review, employees should carry a page with two
columns, the first headed “Specific Areas of Strength” and the second,
“Specific Areas of Improvement”. It’s very important that they hear
both the good and the bad comments, because they will never
improve, to their boss’ satisfaction, if they deny, in their anger, that
there are any areas needing improvement.
70
4. Employees should ask for clarification and specific examples if they
hear generalizations or don’t understand what the problem is. But
they should try hard not to be too argumentative.
5. Employees should find out how their boss might solve these issues,
and ask for another review in 30 days to address these specific issues,
to see if headway is being made.
71
10. Emphasize work behaviors rather than personal traits.
Summarize the key issues that were discussed and seek agreement
and/or clarification.
Give positive feedback to the employee for his/her active
participation in the review meeting.
Reinforce one’s commitment and the employee’s commitment to
future plans, as discussed.
Explain the next step in the performance process.
End the meeting in a positive, friendly manner.
72
21. To discuss subordinate’s appraisal with the Reviewer & finalize
ratings.
73
4. Decide on incentive and increment matrix (compensation strategy) for
organization.
5. Review all potential talent identified and lay a strategic intent towards
their development.
V. Human resources:
The human resources department has to:
1. Facilitate performance management system process across the
company.
74
LIMITATIONS OF THE STUDY
Firstly, the information collected from the questionnaire may not be accurate,
as some of the personnel’s could have given biased answers depending upon the
various factors.
Thirdly, As per the view of the personnel’s, the schedule needs some
modifications further, in huge organization like SIG employees with over busy
schedule instrument was really difficult to answer.
Lastly, it was quite time consuming to contact every employee and then to
follow up for the data collection. Provision, should be made so that with the
prior permission of G.M of the department concerned, a meeting with the batch
of 10-15 executives at a time to ease and speed up the data administration
process. But, frankly the environment of SIG for summer trainees is quite
conductive, cooperative and encouraging.
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CONCLUSION
In the new millennium when the corporate world is designing newer techniques
for developing employees and retaining them, SIG is no way behind and the
organizational structure is such that people works hand in hand to align the
organizational goals with the individuals’ goals.
To sum it up, this project has provided me with opportunities to learn different
areas of the HR function and has given me stepping-stones to climb up to reach
the summit of HR at the end of my career.
76
BIBLIOGRAPHY
BIBLIOGRAPHY
ORGANISATION BEHAVIOR:STEPHEN P. ROBBINS
PERSONAL MANAGEMENT:EDWIN B.HIPPO
RESEARCH METHODOLOGY:R.C.KOTHARI
PRINCIPLE AND PRACTICE OF MANAGEMENT:L.M.PRASAD
MANAGEMENT OF SIG:PERSONAL MANUAL OF SIG
WEBSITES VISITED:
www.samiahnet.com
www.reserchchroline.com
www.citehr.com
www.scribd.com
www.slideshara.com
www.bing.com
MAGAZINES:
BUSINESS WORLD
ECONOMIC TIMES
77
APPENDIX
QUESTIONNAIRE FOR EXECUTIVES
1. Department Name: ______________________
Name : ______________________
Designation : ______________________
Qualification: ______________________
78
b) Partially
c) Not at all
Q6: Are you capable of achieving the goals set for you?
a) Consistently
b) Occasionally
c) Never
Q7: To what extent is the SIG making progress towards its mission and
goals?
a) To a great extent
b) To some extent
c) No opinion
Q8: Do you get merit raise when the performance evaluation indicates
that you are meeting the set standard on the job?
a) To a great extent
b) To some extent
79
c) Not at all
Q9: Do your co-workers and superiors help you to cope up from your
poor performance?
a) To a great extent
b) To some extent
c) Not at all
Q10: In your opinion to what extent the superiors responsible for the
progress of SIG.
a) To a great extent
b) To some extent
c) Not at all
80