Dissertation Report

Title of the Dissertation Report ³PERFORMANCE APPRAISAL´ AT JINDAL BROTHERS PVT.LTD

Submitted in partial fulfillment of requirements for the award of the degree of

Masters in Business Administration

Under Guidance of: <Guide¶s Name> Submitted by: <Student name> <SMU roll no.>

<Name of the student> <Address of the University>

Declaration I,Deepika Saraswat having Roll No.520922764 of MBA Semester 4 of Sikkim
Manipal University hereby declare that the project entitled Performance Appraisal
At Jindal Brothers Pvt .Ltd. is an original work and the same has not been
submitted to any other institute for award of any other degree. The interim report
was presented to the guide on 30TH April,2011. The feasible suggestions have been
duly incorporated in consultation with the guide.

Signature of the candidate (Deepika Saraswat) Counter signed <Guide Name>

Acknowledgement: I would like to express my sincere gratitude to the people who
have directly or indirectly helped me throughout in the successful completion of my
project report on ³STUDY OF PERFORMANCE APPRAISAL at ³JINDAL BROTHERS PVT. LTD´ in
GURGAON. I take this opportunity to express my deep sense of gratitude and whole
hearted thanks to MR. TAPAS RANJAN (HEAD HR) for his valuable guidance and for
giving me this opportunity to complete my training in his organization, and also I
thank him for sharing his experiences which would prove as a great lesson in my
future professional life I would like to thanks MR.PRASHANT CHOUBEY, MR.SUBODH
SINGH & MR SARANG KANCHAN for their valuable guidance and also giving me effective
direction and encouragement throughout the training. I take this opportunity to
thank my project guide PROFESSOR.WADHWA who has seen me through all the stages of
the project. I would like to express my gratitude to him for his timely advice and
Guided as per requirement. And also I would like to thank PROFESSOR S.C.GHOSH for
helping me whenever I needed. Above all I thank GOD, Almighty for the immense
wishes and blessings that gave me motivation and confidence to complete this
project on time (DEEPIKA SARASWAT)
TABLE OF CONTENTS Title 1. Chapter I Acknowledgement Profile of the Project Guide
Executive Summary 2. Chapter II Company profile Scope & Objective 3. Chapter III
Research methodology 4. Chapter IV Performance management 5. Chapter V Data
analysis 6. Chapter VI Findings 7. Chapter VII Recommendations 8. Chapter VIII
Limitations 9. Chapter IX Bibliography 10. Chapter X Appendix 60-71 59 58 57 56 34-
55 19-33 17-18 7-15 16 3 4-5 6 Page No.
EXECUTIVE SUMMARY

This project report is a review based on theory as well as the industry outlook of
performance appraisal system of the organization. The report starts with the
Introduction and Literature Review of performance appraisal system that outlines
its history, definitions, purposes, types, process, methods, appraiser, parameters
of evaluation and the essentials of an effective appraisal system.

Further the performance appraisal system of Jindal Brothers Pvt.Ltd.company,

collected through various primary and secondary sources have been included in the
report which gives a fair idea of the kind of appraisal system being followed
across various corporates.

Last, the conclusions and references has been mentioned.

INTRODUCTION

PERFORMANCE APPRAISAL Performance appraisal may be defined as a structured formal

interaction between a subordinate and supervisor, that usually takes the form of a
periodic interview (annual or semi-annual), in which the work performance of the
subordinate is examined and discussed, with a view to identifying weaknesses and
strengths as well as opportunities for improvement and skills development.
Performance appraisal, also known as employee appraisal, is a method by which the
job performance of an employee is evaluated (generally in terms of quality,
quantity, cost and time). Performance appraisal is a part of career development.
Performance appraisals are regular reviews of employee performance within

organizations.Generally, the aims of a performance appraisal are to:

y y y

Give feedback on performance to employees. Identify employee training needs.

Document criteria used to allocate organizational rewards.
y

Form a basis for personnel decisions: salary increases, promotions, disciplinary

actions, etc.
y y

Provide the opportunity for organizational diagnosis and development. Facilitate

communication between employee and administration

Validate selection techniques and human resource policies to meet federal Equal
Employment Opportunity requirements. Performance Appraisal Summary Performance
appraisal, while enabling a manager to identify the training needs of employees,
and evolving a training plan for them, also, serves to meet other objectives.
Performance appraisal satisfies the psychological needs individuals have to know
how they are performing their job and increases employees' job satisfaction and
morale by letting them know that the manager is interested in their progress and
development. Systematic performance appraisal also provides both the firm and the
employee a careful evaluation, rather than a snap judgement of an employee's
performance. Many firms use performance appraisals to plan placements and transfers
and to provide input into decisions regarding salary increases, promotions, and
transfers. Finally, performance appraisals may be used as a basis for the coaching
and counselling of individual employees by their superiors. To summarize the uses
of performance appraisal:
y y y y y y

Performance improvement Compensation Placement Training & development needs

assessment Career planning
Job design error detection

CHARACTERISTICS OF AN APPRAISAL SYSTEM Performance appraisal cannot be implemented

successfully unless it is accepted by all concerned. There should be a common and
clear understanding of the distinction between
evaluation and appraisal. As Patten (1982) argues, evaluation aims at 'objective'
measurement, while appraisal includes both objective and subjective assessment of
how well an employee has performed during the period under review. Thus performance
appraisal aims at 'feedback, development and assessment.' The process of
performance appraisal should concentrate on the job of an employee, the environment
of the organization, and the employee him- or herself. These three factors are
inter-related and inter-dependent. Therefore, in order to be effective, the
appraisal system should be individualized, subjective, qualitative and oriented
towards problemsolving. It should be based on clearly specified and measurable
standards and indicators of performance. Since what is being appraised is
performance and not personality, personality traits which are not relevant to job
performance should be excluded from the appraisal framework. Some of the important
considerations in designing a performance appraisal system are: Goal The job
description and the performance goals should be structured, mutually decided and
accepted by both management and employees. Reliable and consistent Appraisal should
include both objective and subjective ratings to produce reliable and consistent
measurement of performance. Practical and simple format The appraisal format should
be practical, simple and aim at fulfilling its basic functions. Long and
complicated formats are time consuming, difficult to understand, and do not elicit
much useful information. Regular and routine While an appraisal system is expected
to be formal in a structured manner, informal contacts and interactions can also be
used for providing feedback to employees. Participatory and open An effective
appraisal system should necessarily involve the employee's participation, usually
through an appraisal interview with the supervisor, for feedback and future
planning. During this interview, past performance should be discussed frankly and
future goals established. A strategy for accomplishing these goals as well as for
improving future performance should be evolved jointly by the supervisor and the
employee
being appraised. Such participation imparts a feeling of involvement and creates a
sense of belonging. Rewards Rewards - both positive and negative - should be part
of the performance appraisal system. Otherwise, the process lacks impact. Feedback
should be timely Unless feedback is timely, it loses its utility and may have only
limited influence on performance. Impersonal feedback Feedback must be impersonal
if it is to have the desired effect. Personal feedback is usually rejected with
contempt, and eventually de-motivates the employee. Feedback must be noticeable The
staff member being appraised must be made aware of the information used in the
appraisal process. An open appraisal process creates credibility. Relevance and
responsiveness Planning and appraisal of performance and consequent rewards or
punishments should be oriented towards the objectives of the programme in which the
employee has been assigned a role. For example, if the objectives of a programme
are directed towards a particular client group, then the appraisal system has to be
designed with that orientation. Commitment Responsibility for the appraisal system
should be located at a senior level in the organization so as to ensure commitment
and involvement throughout the management hierarchy. WHAT IS THE ROLE OF
PERFORMANCE APPRAISAL? We've seen from previous discussions, that people are one of
a company's most valuable assets. While most assets depreciate over time, people,
viewed as assets, may actually appreciate. One of the manager's major
responsibilities is to improve and update the knowledge and skills of employees --
appreciation of assets. Performance appraisal plays a significant role as a tool
and technique of organizational development and growth. In essence, effective
appraisal systems provide both evaluation and feedback.The main aim of the
evaluation is to identify performance
gaps -- when performance does not meet the organizational standards -- whereas
feedback is necessary to inform employee about those performance gaps. From the
employee's perspective, performance appraisal informs them about what is required
of them in order to do their jobs, it tells them how well they have achieved those
objectives and helps them take corrective action to improve their performance, and,
finally, it may reward them for meeting the required standards. The firm, on the
other hand, needs a performance appraisal system in order to establish principles
of managerial accountability. Clearly, where employees are given responsibilities
and duties, they need to be held accountable. One of the functions of performance
appraisals is to ensure that people are accountable for their organizational
responsibilities. Perhaps the most significant benefit of performance appraisals is
the opportunities they provide supervisors and subordinates to have one-on-one
discussions of important work issues. During appraisals, subordinates and
supervisors can focus on work activities and goals, identify and correct existing
problems, and encourage better future performance. Performance Appraisal and
Motivation Motivational research has recognized the power of recognition as an
incentive (see Maslow and the Expectancy Theory of Motivation). Performance
appraisals provide employees with recognition for their work efforts. The appraisal
system provides the supervisor with an opportunity to indicate to employees that
the organization is interested in their performance and development. This
recognition can have a positive motivational influence. on the individual's sense
of worth, commitment and belonging.

Performance Appraisal and Training and Development Performance appraisals identify

performance gaps. As such, they provide an excellent opportunity for a supervisor
and subordinate to recognize and agree upon individual training and development
needs.Performance appraisal discussion may identify the presence or absence of work
skills. Further, the need for training can be made more relevant if attaining the
requisite job
skills is clearly linked to performance outcomes. Consolidated appraisal data can
also help form a picture of the overall organizational training requirements.
Performance Appraisal and Recruitment Recruitment and selection procedures need to
be evaluated. Appraisal data can be used to monitor the success of a firm's
recruitment and selection practices. From this data, the firm can determine how
well employees who were hired in the past are performing. Performance Appraisal and
Employee Evaluation Employee evaluation is a major objective of performance
appraisal. Given the major functions of management -- planning, organizing, leading
and controlling -- it is clear that evaluations (controlling) need to be done. At
its most basic level, performance appraisal is the process of examining and
evaluating the performance of employees. However, the need to evaluate is also a
source of tension as evaluative and developmental priorities appear to clash. Some
management experts have argued that appraisal cannot serve the needs of evaluation
and development at the same time. Performance Appraisal and Total Quality
Management (TQM) With the advent of TQM (Total Quality Management) and the
extensive use of teams, traditional performance appraisal systems have come under
some criticism. For example, rather than motivating employees, conflict may be
created when appraisals are tied to merit pay and when that merit pay is based on a
forced ranking. W. Edwards Deming, the founder of total quality management (TQM)
has long been associated with the view that performance appraisals ought to be
eliminated. Many TQM proponents claim that performance appraisals are harmful.
PERFORMANCE APPRAISAL - PROCESS MAP
PERFORMANCE APPRAISAL METHODS 1. Graphic rating scale 2. Paired Comparison 3.
Forced choice approach 4.Easy Appraisal 5.3600 appraisal

Graphic Rating Scale: A performance appraisal that rates the degree to which the
employee
has achieved various characteristics. 1)The graphic rating scale is the most common
type of appraisal used. 2)Various characteristics such as job knowledge or
punctuality are rated by the degree of achievement. 3)The rate usually receives a
score of 1 to 5, with 5 representing excellent performance. 4)Some forms allow for
additional comments.

Paired-comparison Approach: A performance appraisal that measures the relative

performance of employees in a group. 1)This is a method of performance evaluation
that results in a rank ordering of employees to come up with a best employee.
2)This type of approach measures the relative performance of employees in a group.

Forced-choice Approach: A performance appraisal that presents the appraiser with

sets of
statements describing employee behavior; the appraiser must choose which statement
is most characteristic of the employee and which is least characteristic.

Easy Appraisal: Sometimes the supervisor must write a description of the employee¶s
performance. The easy appraisal is often used along with other types of appraisals,
notably
graphic rating scales.

They provide an opportunity for supervisors to describe aspects of

performance not thoroughly covered by an appraisal questionnaire.

360-degree Performance Appraisal: Evaluating Employees From All Angles

Traditional performance appraisals, as discussed above, can be both subjective and
simplistic. At times, they can also be deemed to be "political". In an attempt to
improve this methodology, some companies have turned to 360-degree appraisals. 360
appraisals pool feedback from a department's internal and external customers to
ensure a broader, more accurate perspective of an employee's performance. 360-
degree performance appraisal is an attempt to answer the question: "How can a
supervisor evaluate an employee he or she sees only a few hours each week?"

Benefits of Performance appraisal For the organization:

The organization comes to know the true position of the employees working
capacities and the problems they face while working in the organization. This
performance appraisal system also acts as a motivating factor for the employees,
which helps the organization to get better results.

For the appraise:

The appraise fells themselves an important part of the organization, they get a
chance to express their views in front of their superiors; they get a platform to
express their ideas. The employee comes to know the truth about: # To what extent
they have achieved their objectives. # In what respect their work has been most
successful. # Are there any aspects of their work, which they have not completed?

Are many other question, which make them assess rightly. .. Guidelines for
effective performance evaluation interviews...
y y y y

emphasize positive aspects of employee performance tell employee that the purpose
is to improve performance, not to discipline conduct the review in private review
the performance formally at least annually (more frequently for those performing

poorly)
y y y y y

make criticisms specific focus on performance, not personality stay calm; do not
argue identify specific actions the employee can take to improve performance
emphasize the evaluator¶s willingness to assist the employee¶s efforts to improve

performance
y

end by stressing positive

Appraisal Process
In order to obtain a better understanding of how the performance appraisal has been
put together by The Corporation, the researcher has provided an overview of the
company¶s performance appraisal process. The researcher felt that the overview of
the performance appraisal process would be necessary, since the process provided a
framework for the performance appraisal.

PRE-APPRASIAL STEPS
The performance evaluation can be made for variety of reasons counseling,
promotions, salary increases, administration or combination of these. It becomes
very necessary to begin by stating the objectives of evaluation programs very
clearly and precisely. The personal appraisal system should address the question
who, what, how of performance appraisal. These questions are the components of
these appraisal systems which are discussed below individually.

³WHO ³OF THE APPRAISAL OR µ¶WHO¶¶ IS TO RATE.

The immediate superior, the head of the department or any other can rate the
performance of an individual. In addition to this, sum organizations follow the
system of self appraisal and /or
appraisal by peers. A group, consisting of his senior, peers and subordinates, can
do appraisal, whoever is rating; he should be trained and impartial. In most of the
organizations the ratings is done by his immediate superior who is considered the
best person to understand his subordinates strengths and weaknesses. Now a day some
organizations are following the method of selfappraisal.

THE ³WHAT´OF APPRAISAL It is considered with

# Creating and maintaining a satisfactory level of performance of employees in
their present job. # Highlighting employee¶s needs and opportunities of for
personal growth and development. # Aiding in decision making for promotions,
transfers, layoff and discharges. # Promoting understanding between supervisors and
his subordinates. # Providing a useful criterion for determining the validity of
selections and training methods for attracting individuals of higher caliber to the
organization.

THE µWHEN¶ OF APPRAISAL

The µwhen¶ answers the query the frequency of appraisal? The informal counseling
should occur continuously but the manager should discuss an employee¶s work as soon
as he gets an opportunity to provide positive reinforcement and use poor work as
basis of training. The time and period of appraisal differs according to the need
and nature of the organization.

THE µWHERE¶ OF APPRAISAL

The where indicates the location where employee should be evaluated? It is usually
done at work place or office of the supervisor.

THE µHOW¶ OF APPRAISAL

Under this, the organization must decide what different kinds of methods are
available and which of these may be used for performance appraisal. On the basis of
comparative advantages and disadvantages, the nature and philosophy of management
and the needs of an organization; the method of appraisal is decided.
COMPANY PROFILE Jindal Brothers Pvt. Ltd. specializes in Design, Engineering,
Fabrication and Erection of PreEngineered Metal Building Systems. The Group is well
known in the Middle East & India for the quality of the products and services
offered. In 1998, Jindal Brothers Pvt. Ltd started its journey in India by setting
up State of Art manufacturing facility at Manesar, Gurgaon. Design and Detailing
work is carried out by highly skilled Engineers with computed aided design and
drafting facilities at the Company¶s Head Office at New Delhi. Their objective is
to deliver cost effective, quality Pre-Engineered Metal Buildings within agreed
time schedules to their Customers. Jindal Brothers Pvt. Ltd. maintains high degree
of professionalism at all levels, a commitment needed to maintain highest possible
standards. Every project is executed with Micro Planning, to achieve the Milestones
set out in the contract. This combined with quality of their products has earned us
reputation in the Market Place. Corporate giants, both National and Multinational,
have complimented their strategy of providing single point responsibility for
Supply and Erection with highly motivated and trained In House Project Management
Team to handle projects, whether it is small or big, simple or complex. More than
500 Pre-Engineered Buildings have been installed across the length and breadth of
their Country. This experience corroborates their claim. Regional / Area offices
across the Country are fully equipped to provide pre-order and post order service
to their valued Customers. Organizational effectiveness depends upon the level of
performance of its employees. Hence the level of performance has to be ensured.
Periodic stock taking of the qualitative state of the man power is of vital
importance to an organization and the organization tries to collect the relevant
data through the tool of performance appraisal reports. Thus performance appraisal
is essential for performance effectiveness and efficiency of the organization and
also for carrying out administrative decisions regarding human resources. The
correctness of the decision will depend heavily upon the validity of the data
gathered through appraisal system.

The JINDAL BROTHERS is a relatively an older organization and has been

restructuring its Human Resources Systems and Policies in alignment with the
current business environment. I have therefore taken up this project with an aim to
study the existing system of performance appraisal so that this might help other
organizations to follow the same.
Services Pre-Engineered steel buildings are designed and fabricated to client¶s
requirements in accordance with the Universal standards. A pre-engineered steel
building consists of four major groups of components namely primary members,
secondary members, metal roofing/wall cladding and connection fasteners. These
components are designed that they are compatible with each other. The fabrication
of these components is carried out in factory under strict quality control as per
detailed shop drawing. These components are transported to site with proper
markings and assembled at site as per erection drawings. Knowledge Hub / Brain Ware
They call this the knowledge Hub, a world class Design & Engineering Office manned
with team of experienced professionals and equipped with latest sophisticated
design tools which distinguishes Jindal Brothers Pvt. Ltd. from others. Stadd Pro,
MBS, AUTOCAD, Primavera, MS Projects are among the few Engineering & execution
tools in use at Jindal Brothers Pvt. Ltd. that delivers the fastest solution at the
best of engineering practices applied in a true international design environment.
The Brain House offers intelligent engineering solutions and supports post order
functions with general arrangement, fabrication and erection drawings. The
computerized drafting, detailing and logic programs enable user friendly details to
simplify manufacturing process and erection methods. The Jindal Brothers Pvt. Ltd.
knowledge archives has vanity of standards and design codes such as AISC, AISI,
MBMA, AWS, UBC, ASCE, IBC, IS and many others to suit customer¶s need of a Pre-
Engineered building at any place or country. The Jindal Brothers Pvt. Ltd.¶s
consistent efforts in research & development and global sourcing of material have
positioned the Organization as a lead runner in introducing innovative ideas and
products in the market place.
Manufacturing Facility: # Their State-of-the-art manufacturing facility is located
at Manesar. It houses special equipments to produce quality pre-engineered
buildings such as: # Automatic Beam Welding Line # Plate Shearing Line # Radial
Drilling Machine # Cold Roll Forming Line # Hydraulic Press Break Line # Automatic
Shot Blasting Line # The welding process is as per American Welding Society
Standards. (AWS). All welders are qualified to required standards. # Well defined
process on the shop floor ensures smooth flow of material and productivity. # All
structural components to complete Pre-engineered building are produced in-house and
go through stringent quality checks prior to dispatch. # All major raw materials
and bought out items are sourced from a Panel of approved supplier to ensure
quality and timely supplies.

Automatic Welding Machine

Purlin Roll Forming Machine

Roofing Profile Line

JINDAL BROTHERS India Projects:::

Location Washim

Client ITC Grain Godown Cafeteria Dept. Store

Bawal

YKK (SMCC Construction)

Jagdishpur

ITC Grain Godown Cafeteria

Vatva , Ahmedabad

MIDCO Containers Pvt. Ltd

Delhi Pune Mandsour

Giex Foods S.M. Auto Eng. ITC Grain Godown

Cafeteria Dept. Store Amaravati ITC Dept. Store Gurgaon Chandouli Daman Delhi SMCC
ITC Enercon Food Processing Equipment

Bhuj Delhi Delhi Sri Perumbudur Faridabad Gurgaon Gurgaon Kanpur Aurangabad

Essar Construction Jindal Stainless Honda Siel Saint-gobain Tata Iron And Steel Co.
Smcc - Kienfie Smcc - Kinzoku Hargovind Bajaj Gran Electronics
Chennai Delhi Daman

Ameco Infrastructure Manmohan Pipes Blossom Industries GreenPly Industries

Gurgaon Gurgaon Hyderabad Chenani

SMCC ± Honda SMCC ± Honda HBL Nife Meredian Apparel

OBJECTIVES OF THE STUDY

y y y y

To identify the technique of Performance Appraisal followed in Jindal Brothers Pvt.

Ltd. To study how the employees are rated against these parameters To identify how
the performance of the employees is improved and enhanced To provide suggestions &
recommendations to improve their Performance Appraisal
REASONS FOR CHOSSING TOPIC:-
RESEARCH METHODOLOGY In order to accomplish the objectives of the study, it is
essential to articulate the manner in which it is to be conducted, i.e., the
research process is to be carried-out in a certain framework. The research
methodology, which follows, is the backbone of the study. Data Collection Sources
Research work was done from two sources: (1) Primary data (2) Secondary data
Primary data was collected by questionnaire and interview in the organizations. The
questionnaire comprised of closed and attitude questions. The opinion on existing
Performance Appraisal practices and their affectivity were collected through
questionnaire which was circulated to all the employees at all levels and the
results have been analysed on the basis of agree and disagree. The methodology for
collection of data also included interviews and discussion with the top management
of the organization. Secondary data: It was collected by reviewing different
literatures, from published books, management journals, articles published by the
other researchers on 360 Degree Appraisal.

Sampling: The total sample size for this project was 4 HR people at Jindal
Brothers. The information collected through above methods has been tabulated,
analysed and interpreted. Finally an overall assessment of the contribution of top
management has been made towards improving the effectiveness of the organization.
TYPES OF RESEARCH Research methodology is a way to systematic solve the Research
Problem. It is a procedure, which is followed step by step to solve a particular
research problem. There are basically four types of researches: 1 2 3 4 EXPLORATIVE
RESEARCH DESCRIPTIVE RESEARCH DIAGNOSTIC RESEARCH HYPOTHESIS TESTING RESEARCH

Explorative Research:- To gain familiarity with phenomenon or to achieve an insight

into it. Descriptive Research:-To poetry accurately the characteristics of the
particular individual situation or a group. Diagnostic Research:-To determine the
frequency with which something occurs or with which it is associated with something
else. Hypothesis Testing Research:-To test a hypothesis of casual relationship
between variables. The present project is Descriptive cum Explorative in nature. It
is done to poetry accurately the characteristics of a particular individual
situation or a group. The major purpose of the descriptive research is the
description of the state of the affairs as it exits at resent. The main
characteristics of this method are that the researcher has no control over the
variables; he can only report what has happened or what is happening.
LITERATURE REVIEW Organizations exist to achieve goals. Goals are only met when
individual employees efforts matches with policy of the organization and thus
bringing out success and effectiveness. The assessment of how successful employees
have been at meeting their individual goals therefore becomes a critical part of
HRM and here comes Performance Appraisal System. Performance appraisal is an
important component of the information and control system. In today¶s flexible
organizations, performance evaluation provides an important way for managers to
clarify performance goals and standards and to enhance future individual
performance. Thus the purpose of performance appraisal is to improve the
organization¶s performance through the enhanced performance of individuals. The
performance appraisal system: y y y y y y y y Is an organizational necessity Is
based on well defined objective criteria Is based on careful job analysis Uses only
job related criteria Is supported by adequate studies Is applied by trained
qualified raters Is applied objectively throughout the organization Can be shown
non discriminatory as defined by law

PERFO RMANCE APPRAISAL AND MANAGEMENT, Journal of Performance Appraisal Techniques

November 4,2001-Vol.1,No.4pp.418 By Fletcher C Performance appraisal has widened as
a concept and as a set of practices and in the form of performance management has
become part of a more strategic approach to integrating HR activities and business
policies. As a result of this, the research on the subject has moved beyond the
limited confines of measurement issues and accuracy of performance ratings and has
begun to focus more of social and motivational aspects of appraisal. This article
identifies and discusses
a number of themes and trends that together make up the developing research agenda
for this field. It breaks these down in terms of the nature of appraisal and the
context in which it operates. The former is considered in terms of contemporary
thinking on the content of appraisal (contextual performance, goal orientation and
self awareness) and the process of appraisal (appraiser±appraisee interaction, and
multi-source feedback). The discussion of the context of appraisal concentrates on
cultural differences and the impact of new technology.

Performance Appraisal as Effective Management or Deadly Management Disease Journal

of Performance Appraisal Management Jan1,2005- Vol.80, Pages18 by Gregory H.
Dobbins Understanding person and system sources of work variation is fundamental to
performance appraisal. Two divergent perspectives on this issue, the traditional
human resource management view and the statistical process control view (Deming,
1986), are contrasted. Two studies are reported that investigate two specific
questions that arise from a broader view of the appraisal process. Results indicate
that managers and subordinates believe that typical poor performance has different
causes and that actual productivity levels far outweigh person or system sources of
performance variance in appraisal judgments.

A Contingency Approach to Appraisal Satisfaction Journal of Performance Appraisal

Approaches,July2009,Vol.49,Pages65 by Gregory H. Dobbins The present study explored
the moderating effects of organizational variables on the appraisal characteristic-
appraisal satisfaction relationship. Analyses indicated that the appraisal
characteristics of action plans, frequency, and rater training were more positively
related to appraisal satisfaction when subordinates experienced role conflict, were
not closely monitored, and supervisors had a large span of control. The results
provide substantial support for conceptualizing appraisal satisfaction as a
contingent function of both appraisal characteristics and organizational variables.
Implications of the findings for the design of appraisal systems, appraisal
effectiveness, and future research are discussed.

Differential Performance Appraisal Criteria Journal of Performance Appraisal

Criteria,Oct2010,Vol.18, pages 72 by Taylor Cox Performance appraisal ratings of
125 first-level managers were analyzed to investigate the degree to which the
criteria used to evaluate the overall job performance of black managers differs
from that used to evaluate white managers. The performance appraisal form included
items that measured both the social behavior dimension and task/goal accomplishment
dimension of job
performance. The appraisal ratings of both groups on each dimension were correlated
with measures of overall job performance and promote ability. Results indicated
that social behavior factors are more highly correlated with the overall job
performance of black ratees than for white ratees. Implications of these results
for both black managers and organizations are discussed.

A Restatement of the Satisfaction Journal of Performance Hypothesis,Vol.59,Sept

2010,Pages 45 by Dennis W. Organ, This article reviews recent evidence in support
of Organ¶s (1977) argument that satisfaction more generally correlates with
organizational prosaically or citizenship-type behaviors than with traditional
productivity or in-role performance. An attempt is then made to interpret just what
it is in satisfaction measures that provides this correlation, leading to the
suggestion that fairness cognitions comprise the major factor. Implications of this
interpretation for theory, research, and management practice are offered.
ANALYSIS & INTERPRETATION This chapter deals in tabular presentation results and
their analysis for the purpose of easy reading the section has been divided into
two parts. * * * Tabular form of Response Inference Remarks on each question
1. In your company, the key competencies required for each job are already
identified?

Response Category Very true True Partly true Not true

No. of responses 0 4 9 37

Percentage 0 8 18 74

80 70 60 50 40 30 20 10 0 No. of responses

Very true True Partly true Not true

Inference: Most of the respondents (74%) found the above statement to be µNot True
´. This was followed by 18% of the respondents feeling that this statement was
µPartly True¶ for their organization. Only 8% of the people found it to be µTrue¶.

Remarks: Although the appraise does not have a clear understanding of what is
expected of him at the beginning of the year (Inference I), both he and the
appraiser know what his job is all about. This also shows that although an employee
knows what his current to do to be rated higher by the reporting officer. The
responsiveness in category of Partly True and Not True may be due to the face that
job content in Jindal Brothers is flexible and not well defined and some people
find it difficult to define their jobs. However, most of the people have a general
idea of the scope of their jobs.
2. There are mechanisms that help employees develop their potential for the next
round of job?

Response Category Very true True Partly true Not true

No. of responses 0 5 25 20

Percentage 0 10 50 40

50 45 40 35 30 25 20 15 10 5 0 No. of responses

Very true True Partly true Not true

Inference: Quite a large number of respondents (40%) shared the view that the
appraisal system did not give a clear understanding of all appraisals, job to both
appraiser and appraise by saying that it was µNot True¶. Only 50% and 10% of the
respondents felt that the statement was µTrue¶ and µPartly True¶ respectively.
Remarks: Although the appraise does not have a clear understanding of what is
expected of him at the beginning of the year (Inference I), both appraisee and the
appraiser know what his job is all about. This also shows that although an employee
knows what his current to do to be rated higher by the reporting officer. The
responsiveness in category of Partly True and Not True may be due to the face that
job content in Jindal Brothers is flexible and not well defined and most people
find it difficult to define their jobs. However, most of the people have a vague
idea of the scope of their jobs.
3. Employees regularly receive feedback about their potential for higher level
jobs? Response Category Very true True Partly true Not true No. of responses 0 8 7
35 Percentage 0 16 14 70

70 60 50 40 30 20 10 0 No. of responses
Very true True Partly true Not true

Inference: 70% of the respondents agreed that the appraisal system did not helped
them to know their potential to perform at higher levels. Plan their performance
well by saying that it was µNot True¶. Only 16% and 14% people felt that this
statement was µTrue¶ and µPartly True¶.

Remarks: The above inference shows that the PA system in Jindal Brothers does not
give feedback about µplanning for performance¶ to its employees. It helps
anticipating work needs in order to arrange work in logical order. It also helps in
devising efficient methods to attain predetermined plans. Again due to flexibility
in job content, some people may have found problems in planning their performance
systematically.
4. Job rotation is practiced widely to help people develop their potential in new
areas?

Response Category Very true True Partly true Not true

No. of responses 7 18 25 0

Percentage 14 36 50 0

50 45 40 35 30 25 20 15 10 5 0 No. of responses

Very true True Partly true Not true

Inference: About 50% of the respondents felt that the above statement was µPartly
True¶. It was followed by 36% people feeling that it was µTrue¶ with 14% believing
that it was µVery True¶.

Remarks: Job rotation is the most economical way of providing training to the
employees. It facilitates both organization and individual development. Job
rotation gives an individual hand on experience for carrying out various different
functional activities. The performance appraisal system should include this process
in the training need identification performance.
5. The appraisal system provides an opportunity for self-review and reflection?
Response Category Very true True Partly true No. of Responses 0 0 13 37 Percentage
0 0 26 74

Not true

80 70 60 50 40 30 20 10 0 No. of Responses

Very true True Partly true Not true

Inference

There is a general agreement on then fact that the PA system in Jindal Brothers
does provide ample opportunity for self-review and reflection. 74% of the people
felt that it was µPartly True¶ with 26% agreeing.

Remarks

The presence of self-appraisal procedure in the PA appraisal system is an important

reason for the above inference. The self appraisal includes questions on major
achievements, constraints in performance, type of training required,
tasks/activities undertaken successfully during the year, problems faced etc. It
also includes suggestions on making the job interesting and challenging and plans
to improve effectiveness. Due to this fact, employees may have felt that they were
participating actively in their own appraisal by self -review and reflection on
various issues.
6. Promotions are based strictly on need rather than to reward individuals?

Response Category Very true True Partly true Not true

No. of Responses 0 4 25 21

Percentage 0 8 50 42

50 45 40 35 30 25 20 15 10 5 0 No. of Responses

Very true True Partly true Not true

Inference

50% of the respondents believe that the above statement is µPartly True¶ This was
closely followed by 42% of the respondents rating it as µNot True¶ and 8% of the
respondents feeling that it was µTrue¶.

Remarks

The performance appraisal is completely need based the organization recognizes and
promotes high achievers only if there are vacancies available in the organization.
This has a negative impact on people who are not rewarded and promoted duly for
their good performance. There should be a system of rewarding employees either in
monetary terms or in terms of recognition.
7. The appraisal system gives each appraisee an idea of what is expected of him
next year? Response Category Very true True Partly true Not true No. of Responses 0
10 26 14 Percentage 0 20 52 28

60 50 40 30 20 10 0 No. of Responses
Very true True Partly true Not true

Inference

52% of the respondents felt that the above statement was µPartly True¶. This was
followed by 28% and 20% of the respondents feeling that it was µNot True¶ and
µTrue¶ respectively.

Remarks

Each employee needs to have an idea as to what accountabilities will he have if his
appraisal is given a good remark for working at higher levels. The appraisee should
know his potential, which will go a long way in his higher level jobs.
8. It is designed to aid the appraisee and appraiser jointly understand the formers
job? Response Category Very true True Partly true Not true No. of Responses 0 14 22
14 Percentage 0 28 44 28

45 40 35 30 25 20 15 10 5 0 No. of Responses

Very true True Partly true Not true

Inference

There was a mixed response to the given statement. 44% of the responses consisted
of ³Partly True¶ ratings. 28% respondents believed that this was µNot True¶ whereas
28% believed that this was µTrue¶.

Remarks

The above inference implies that Jindal Brother¶s PA system does not score well in
the aspect of transparency in communicating an employee¶s performance through
performance review and discussion. The discussions between appraisal processes. The
interaction on self appraisals is not a common feature and is only done on certain
occasions (exceptionally good or bad performance etc.) The presence of 44%
responses as ³True´ may be due to good relationship and open communication shared
by some of the appraiser appraise pairs.
9. The performance appraisal provides an opportunity for self review and
reflection?

Response Category very true true partly true not true

No. of Responses 0 2 25 23

Percentage 0 4 50 46

50 45 40 35 30 25 20 15 10 5 0 No. of Responses

very true

true

partly true

not true

Inference

Most of the respondents agreed that the appraisal system catered to their
development needs (50% believed that it was ³Partly True´) and it was very closely
followed by 46% saying it was ³Not True´. There were 4% cases, which believed that
it was µTrue¶.

Remarks

Although the inference indicates that the PA system allowed mutuality, trust and
open communication between superior and subordinates, there may be chances of
biases in employees while rating this statement. The answers may have varied
depending on proximity etc.
10. The appraisal procedure allows the appraisee to express his developmental
needs? Response Category very true True partly true not true No. of Responses 0 8
16 26 Percentage 0 16 32 52

60 50 40 30 20 10 0 No. of Responses
not true partly true True very true

Inference

The most common response on above statement was an astounding µNot True¶ with 52%
people agreeing that the PA system was free of any biases. It was followed by 32%
saying that it was µTrue¶ and 16% saying that it was µPartly True¶.

Remarks

The above inference implies that people are satisfied with the PA system in Jindal
Brothers and believe that it provides scope for developing their potential. This
may be due to the fact that the self appraised of the appraise invites suggestions
on job enrichment, training needs and steps to be taken to improve individual¶s
effectiveness.
11. The system has scope to correct the biases of the assessor through a super
review?

Response Category very true true partly true not true

No. of Responses 0 2 14 34

Percentage 0 4 28 68

70 60 50 40 30 20 10 0 No. of Responses
not true partly true true very true

Inference

68% of the people rated the above statement as µNot True¶ 28% believed it was
µPartly True¶ with 4% disagreeing by saying that it was µTrue¶.

Remarks

A performance appraisal system, which is perceived as µbias -free¶ by its

executives, is an achievement for the organization. In the PA system the reporting
officer appraises a section of people whereas the reviewing officer appraises the
performance of an entire department. also the reviewing officer is the immediate
superior of reporting officer. Any disagreement between the assessments of an
employee has to be duly discussed and recorded. Also, any noticeable difference of
opinion between self appraisal and appraisal by reporting officer has to be
accounted for. All the above factors help in correcting the biases,. if any, of
reporting officer.
12. The appraisal system provides for a frank discussion between appraiser and
appraisee? Response Category very true True partly true not true No. of Responses 0
6 0 44 Percentage 0 12 0 88

90 80 70 60 50 40 30 20 10 0 No. of Responses

very true

True

partly true

not true

Inference:

An astounding 88% rated the above statement as not true with 12% that it was true.

Remarks

Although, most of the people felt that there was mutuality and trust between
appraiser and appraise, it may again depend on the proximity and relationship
shared by an employee and his/her boss. The ratings may be based, as the employees
may have felt that a negative answer may adversely affect them. The reason behind
this conclusion is that a low score on extent of communication and discussion
between appraisers and appraise and high score on mutuality and trust give a
contradictory view.
13. The procedure allows for the communication of CEOµs goal to the workforce?
Response Category very true true partly true not true No. of Responses 0 2 10 38
Percentage 0 4 20 76

80 70 60 50 40 30 20 10 0 No. of Responses

very true

true

partly true

not true

Inference

The typical response in this case was µNot True¶, by 76% of the respondents. 20%
rated the above statement as µPartly True¶ and 4% as µTrue¶.

Remarks

Even if half of the respondents gave a mid-way answer, presence of 44% µSlightly
True¶ answers give a negative picture of the above statement. This implies that the
business goals are not well integrated with individual goals. There is no direct
linkage between the management plans and evaluation criteria. This may be due to
the fact that either the business goals are not quantified enough or the management
is not quick enough to communicate its plans to the staff below.
14. The appraisal system brings out the training needs of the employees. Response
Category very true True partly true not true No. of Responses 0 3 22 25 Percentage
0 6 44 50

50 45 40 35 30 25 20 15 10 5 0 No. of Responses

very true

True

partly true

not true

Inference

50% of the respondents believed the above statement to be µNot True¶ closely
followed by 44% people believing it to be µPartly True¶. Only 6% believed it to be
µTrue¶.

Remarks

A few people get the training related to their competencies skills that needs to be
enhanced for successful completion of their work. most of the people do not get
adequate training according to changes in their job description i.e.
responsibilities and KRAS.
15. The performance appraisal system clarifies the career prospects, aspirations
and intentions?

Response Category very true true partly true not true

No. of Responses 0 5 40 40

Percentage 0 10 80 80

80 70 60 50 40 30 20 10 0 No. of Responses

very true

true

partly true

not true

Inference

The typical response (80%) for the above statement was µNot True¶ 10% employees
believed it to be µPartly True¶ with an equal 10% employees believing if to be µNot
True¶.

Remarks

The general picture drawn from the above inference is that all the employees are
not clear as to what the PA system is all about and what is the reason behind its
existence. This shows that PA system has acquired an important status in Jindal
Brothers with all employees acknowledging its presence and essence.
16. The appraisal system provides a rational basis for salary recommendations?

Response Category very true True partly true not true

No. of Responses 0 8 14 28

Percentage 0 16 28 56

60

Inference

Remarks

very true

40 30 20 10 0 No. of Responses
not true partly true True

56% of the respondents felt that the above statement was µNot True¶. 28% responses
included µPartly True¶ ratings whereas 16% responses included µTrue¶ ratings.

The employees do not want a fixed increment for their great performance. The
company should make recommendations related to salary on the basis of regular
performance feedback about every employee since the frequency of performance
measurement varies from department to department, it is difficult to carry out this
work smoothly.
17. The company relates reward to your performance? Response Category very true
True partly true Not true No. of Responses 0 10 4 36 Percentage 0 20 5 72

80 70 60 50 40 30 20 10 0 No. of Responses

very true

true

partly true

not true

Inference

:`

Most of the respondents (72%) felt that the above statement was µNot True¶. 20%
believed it to be µTrue¶ whereas a mere 8% felt that it was µpartly True¶.

Remarks

The company uses the reward system as a motivating force for enhancing the
performance of its employees. Rewards should be promptly given to high achievers in
terms of increment, promotions, increased job responsibilities etc. for their
accomplishment.
18. What kind of an appraisal system will bring out the best of an employee?

Response Category appraisal by all superiors appraisal by immediate superior

No. of Responses 10 5

Percentage 20 10

appraisal by reference team appraisal by reference team and self.

15 20

30 40

40 35 30 25 20 15 10 5 0 No. of Responses

appraisal by all superiors appraisal by immediate superior appraisal by reference

team appraisal by reference team and self.

Remarks

This shows that the relationship between appraiser and appraise, in Jindal
Brothers, with respect to planning the performance is quite good. The subordinate
in planning his performance. The appraiser helps the appraise in testing the
soundness of his goals as well as of his plans for achieving them. This implies
that there is active participation of both appraiser and appraise in performance
planning. The reason behind µNot True¶ answer may be due to the fact that many jobs
in Jindal Brothers are not well defined and therefore an elaborate planning on them
is not done.
FINDINGS Organization Structure and Design

1- Jindal Brothers is a young, dynamic organization and is going strong on the

stock market. 2- The company is well aware of the dynamic environment of software,
it is operating and in order to keep it with the pace of the environment it
believes in constant up gradation of courses. Organization structure and design of
the company is such that it supports this change. 3- Jindal Brothers has a matrix
kind of a structure wherein it takes the form of combination of structures. Matrix
structures are adopted became there is more than one factor around which the
structure can be built. 4- This matrix structure at Jindal Brothers improves the
quality of decision-making where interest conflicts arise and direct contacts
replaces bureaucracy 5- . This increases the motivation of the managers and
development of wider involvement in strategies. Although at times the company faces
high risk of dilution of priorities became e people do not know who is responsible
for what. 6- An organization is a network of authority, responsibility and
relationships. Different organization structure consists of different type of
relationships. Line Organization It is the traditional type of organization. It
refers to a direct chain of command from top to bottom. In the line organization
the lines of direction are straight and vertical. Authority and responsibility flow
vertically in an unbroken straight line from one level to another. Every
superior has complete command over his subordinate and every subordinate has to
report his work to only the senior or to the level above his own level. Staff
Organization Staff may be of three types: 1.)Personal Staff: It consists of
personal assistants attached to individual line executives. Personal staff is
employed to carry out those responsibilities of an executive, which he cannot or
does not want to delegate to others. 2.)Specialized Staff: It consists of
specialists in different functional areas e.g. personnel, accounting, legal and
public relations etc. A specialized staff department serves as a fountainhead of
expertise for the entire concern. 3.)General Staff: IT INCLUDES A G ROUP O F
EXPERTS ATTACHED TO THE CENTRAL OFFICE AND IT PROVIDES G ENERAL ADVICE MOSTLY TO
THE TO P MANAGEMENT. Complaint Handling As part of the process for capturing
customer complaints and acting on them, Jindal Brothers has procedures that ensure
that each customer complaint is captured, recorded and reported as part of a formal
review system. The process includes related activities such as escalation of a
problem, tracking each complaint to closure, and creating new procedures (or
modifying existing ones) to prevent similar problems from repeating in the future.

Employee Excellence At Jindal Brothers they believe that they can build a world
class structures. Their vision document, which drives each employee as well as the
organization itself,
reflects Jindal Brother's commitment towards customers and employees. Starting from
the recruitment process and culminating in annual reviews, Jindal Brothers has
quality processes for tracking and maintaining quality standards.

Recruitment For recruitment, Jindal Brothers administers various tests to the

applicant. These include aptitude tests, IQ tests, management tests, and
personality tests. Each of the tests captures different information about the
individual so that Jindal Brothers can ensure that the person is appropriate for
the job and will fit into the company culture.

Goal Setting Before starting on the job, employees discuss their role and
responsibilities with their supervisors. This results in the setting of goals and
objectives for each individual for the coming year. This process clarifies the
expectations from each individual during the year. Each employee is expected to
monitor his/her goals by filling in a focus report every month, which is then
discussed with the supervisor.

Training Jindal Brothers recognizes the fact that the skills of employees need to
be upgraded constantly. Jindal Brothers trains each and every employee continually
through the year. In fact, Jindal Brothers has one of the highest training days per
employee in the world: each Jindal Brothers employee receives over 11 days of
training each year. Jindal Brothers has an employee training division which
conducts in-home e, residential training programs exclusively for Jindal Brothers
employees.
PERFORMANCE APPRAISAL AT JINDAL BROTHERS While on the job, performance reviews of
every employee are done every quarter. The reviews are done with a view to helping
the individual excel at his/her workplace. In case there are any training
requirements, these are noted and acted upon in the coming quarter. Also, the goals
and objectives for the employee are re-visited for The performance appraisal
mechanism is carried out at Jindal Brothers for promotional purposes These are done
so as to motivate the employee and improve his performance level. The method is as
follows: a) Establishment of performance standards with the employees b) The goals
are set mutually as per measurable standards. c) The actual performance is hence
measured. d) After measuring of the actual performance, the same is compared with
the standards set e) The appraisal is then discussed with the employees. f) And
finally, if need arises corrective action is initiated. For this purpose the
corrective action is actually identified through brainstorming exercises initiated
by the departmental heads at all the Jindal Brothers. It is then measured as a tool
to evaluate the past performances of the employees. Some of the methods used at
Jindal Brothers are: 1. Key Performance Index 2. 360 Degree Feedback 3. Paired
Comparisons 4. Behaviorally Anchored Rating Scale
1. KPI-Key Performance Index It is based on the performance level of the employee
generally classified on the basis of: y y y y Targets achieved Ratings through
students¶ feedback forms Punctuality and regularity Day to day performance

This is given after every module at the centers. Thus we can observe that the
appraisal system is not a biased one but based on performance and productivity
basis. All the respective heads of the employee together with the senior persons at
the center brainstorm and then give the promotion. 2. 360 Degree Feedback This
feedback system involves the participation of Top Management. Thus the feedback
given by these members at Jindal Brothers is considered under a holistic view and
then the employee is given a performance appraisal. This evaluation method involves
40% feedback from the coworkers which says that the employee should not only
maintain good rapport with the senior or junior but majorly with the coworkers
also.

3. Paired Comparisons The evaluator compares all possible pairs of subordinates on

their overall ability to do the job. Due to the subjectivity of evaluating overall
performance some managers me e a number of different job related dimensions when
comparing.
4. Behaviorally Anchored Rating Scale (BARS) It is a sophisticated method of
evaluating the employee based on the employee behavior. It is a numerical scale
that is anchored by the seniors of the organization at various centers. This is
highly confidential and the information is sent in sealed envelopes and opened only
at the time of the final evaluation. There is no further discussion regarding this
scaling, thus it is not given enough weightage.
SURVEY FINDINGS In this section, basic data for a group of 100 employees from
lower, middle, senior and top managers is presented on various attributes of
performance appraisal. Frequency and frequency percent scores were computed for
each of the groups of the entire selected variable. 1. Finding through the
Questionnaire Through the questionnaire it was found that promotions were and known
to most of the top and senior management while middle and lower management were a
bit not clear about it. This could be attributed to the fact that senior and top
management were more involved in decision making and policy formulation than are
the middle and lower management. Same reason could be attributed to the fact that
code 1 managers were absolutely clear of what was expected out of them every year,
whereas 50% senior management ware clear or partly clear about the same and the
about 20% of middle management were not clear about it and still further, the 71%
of lower management was not aware of what was expected out of them every year. 85%
of code 4 employees said that they could express their reason of failure. The
responses of 50% of Middle Managers were bit favorable whereas 100% senior
management also thought that they did not get the opportunity to express their
cause of failure. The 60% of top management were portly able to express their cause
of failure. This may be because the appraisal system is more of less performance
based and human factor is by and large overlook. Whereas, at the lower levels of
the organization, performance can be quantified, and the managers are made
accountable at the higher echelons the tasks are too complex and therefore cannot
be assessed on the basis of quantified performance and therefore the top and senior
management believed that the promotions are also for motivation whereas the
attitude wanes as the level of hierarchy goes up. This is probably because of the
appraisal of performance based on the quantity or results. If the employee¶s output
is good of better they get promotions and also get motivation to achieve better
performance. At the higher levels the results are more of subjective nature
therefore promotions does not accrue on the basis of quantified results only. Most
of the managers feel that the mechanism for potential appraisal is not adequate.
This may be, because the training programmers are also not developed. As far as
feedback is from superiors is concerned, most of the top and senior management were
of the view that they constantly receive feedback. This is because, they take
decisions crucial to the existence of the organization and therefore are closely
watched and monitored as compared to the employees in the lower & middle levels.
Again the top management felt that they with their superior decide about their job
but 100% of senior management did not feel the same at all. This is because again
due to power centeredness and power difference in the organization, being a tall
organization the superior are not accessible to their subordinate. 60% of lower
management thought that their creativity was definitely not adequately recognized
whereas the top management believed that the organization encouraged creativity.
This highlights the gap of communication in the organization and differences in the
perception of culture in the organization by different grades of employee. 70% of
lower management thought that the system was not free from biases and same is felt
by most of the middle, senior and top
management. This shows that human instincts and behaviors influence the performance
appraisal system. 60% of lower management was not clear about the goals and
objectives of the organization. Most of top management thought that they were clear
or very clear, about the organization goals. This is because, the power distance is
extent and communication system of the organization is not very effective. This
also shows that transparency is lacking in the system. 70% of lower managers
thought that the performance appraisal system did not identify their training
needs. 80% of senior managers also thought the same. But the view of top management
differed in the sense that they felt that the system helped them surface their
training needs. The reason being that the training programmes are not fully
developed and are not constantly evaluated in the organization. The top management
felt that there was a scope of super review. The senior management also felt a bit
the same but lower and middle management keep attending meetings and had already
developed rapport with their superiors and so could easily talk out their appraisal
results whereas this is not so for lower and middle management. They are not able
to approach their senior easily and are therefore could not appeal for super-
reviews. 60% of lower managers said that they do not get opportunity for self
review and reflection. This is because performance appraisal is lacking human touch
to it. The appraisals are entirely based on performances, overlooking the cause of
successes and failures. The appraisal system thus does not meet individual¶s
developmental needs and also does not contribute to employee¶s job satisfaction and
moral development.
2. Findings from Observation and Discussions The organization believed that self
appraisal is the best for managers and above. To improve interpersonal
communication and behavior assessment by peers and subordinates is essential. The
performance of the employees is not regularly monitor and the required feedback is
provided to the subordinates from time to time. The appraisals are conducted at
fixed intervals. The organization believes in using appraisal for rewarding and
increments. There was a neither formal nor informal discussion on job specification
and tasks to be accomplished for various departments. There was no formal
performance appraisal taking place till now in the organization. There fore, there
were no written records of such activity in the personal files of the employees.
However people were being appraised informally by the superiors and got promoted or
incremented accordingly. It would not be wrong to say that interpersonal relations
and personal biases (i.e. liking and disliking influence the appraisals in the
organization).The management is in the process of restructuring and developing such
policy in the organization.
Learning
1. Function of HR department in a manufacturing firm. 2. Solving hurdles in the
process of appraisal 3.Steel manufacturing process. 4. Manpower required for the
company. 5. Solving employees¶ problems. 6. Organizational structure
RECOMMENDATIONS

1. To improve attendance there should be rewards for those employees who attains
above 95% attendance. 2. There should be training sessions to improve team
building. 3. There should be proper training for appraisal to the employees. 4. In
the beginning of the year employee must know the performance standards on which
his/her performance will be judged in end of year. 5. More stress relieving
packages should be offered to the mentally stressed staff. 6. Overtime should be
taken care of at time of performance appraisal, which would motivate the employees
to perform better for longer hours. 7. Performance appraisal should after at proper
span of time . 8. Performance appraisal should be done by expert person.
CONCLUSION

Performance appraisal is the process of reviewing employee performance vis-à-vis

the set expectations in a realistic manner, documenting the review, and delivering
the review verbally in a face-to-face meeting, to raise performance standards year
over year through honest and constructive feedback. In the process management
expects to reinforce the employee¶s strengths, identify improvement areas so that
one can work on them and also set stretched goals for the coming year. Effective
performance management requires a good deal of face-to-face supervisor-employee
interaction. By knowing the subordinates, a supervisor can steer them onto a path
of greater productivity and optimized output. It is one of the most significant and
indispensable tool for an organization as it helps in getting to know the people
who work for them. provides information, which helps in taking important decisions
for the development of an individual and the organization.
SAMPLE QUESTIONNANIRE
I have undertaken a project on PERFORMANCE APPRAISAL SYSTEM. The information
furnished by you will help knowing the effectiveness of the present appraisal and
reward system and if need be designing of a new appraisal system. The data will be
kept confidential and will be used for academic purpose only.

1. In your company, the key competencies required for each job are already
identified. a) Very true c) Partly true b) true d) not true

2. There are mechanisms that help employees develop their potential for the next
rung of job. a) very true c) partly true b)true d) not true

3. Employees regularly receive feedback about their potential for higher level jobs
a) very true c) partly true b)true d) not true

4. Job rotation is practiced widely to help people develop their potential in new
areas. a) very true c) partly true b)true d) not true

5. Your company s promotion policies are clearly defined and shared with all
employees. a) very true c) partly true b)true d) not true
6. Promotions are based strictly on need rather than to reward individuals? a) very
true c) partly true b)true d) not true

7. The appraisal system gives each appraisee an idea of what is expected of him
next year? a) very true c) partly true b)true d) not true

8. It is designed to aid the appraisee and appraisers jointly understand the former
s job? a) very true c) partly true b)true d) not true

9. The performance appraisal provides an opportunity for self review and

reflection? a) very true c) partly true b)true d) not true

10. The appraisal procedure allows the appraisee to express his developmental
needs? a) very true c) partly true b)true d) not true

11. The system has scope to correct the biases of the assessor through a super
review? a) very true c) partly true b)true d) not true
12. The appraisal system provides for a frank discussion between appraiser and
appraisee? a) very true c) partly true b)true d) not true

13. The procedure allows for the communication of CEO s goal to the workforce? a)
very true c) partly true b)true d) not true

14. The appraisal system brings out the training needs of the employees. a) very
true c) partly true b)true d) not true

15. The performance appraisal system clarifies the career prospects, aspirations
and intentions. a) very true c) partly true b)true d) not true

16. The appraisal system provides a rational basis for salary recommendations. a)
very true c) partly true b)true d) not true

17. The company relates reward to your performance. a) very true c) partly true
b)true d) not true
18. What kind of an appraisal system will bring out the best of an employee? a)
appraisal by all superiors c) appraisal by reference team b) appraisal by immediate
superior c) appraisal by reference team and self.

19. How do you support your subordinates?

___________________________________________________________________________________
__
___________________________________________________________________________________
__ ____________________________________.
Bibliography
Aswathappa K, Human Resource & Personnel Management, Tata McGraw- Hill Publishing
Co. Ltd., New Delhi, Sixth edition 2001 Kothari C.R., Research methodology methods
& techniques, Wishwa Prakasan ublishing Co. Ltd., New Delhi, Sixth edition 2001.
Human Resources Management by P.Subarao

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