A

SUMMER TRAINING REPORT

ON

AT
''Fiem Industries Ltd''
Submitted in the partial fulfillment of the requirement for the degree of
bachelor of Business Administration(2019-2020)

Under Guidance Submitted by: Sunny

:Ms. Hitesh Kaushik Registrationno:17S7460293
University Roll no.

DEPARTMENT OF MANAGEMENT STUDIES

1
2
 DECLARATION

I, Sunny, student of Bachelor of Business Administration, studying at Hindu College, Sonipat

hereby declare that the summer internship report on “Performance appraisal at Fiem
industries Ltd.” submitted to Department of Business Administration in partial fulfillment of
the requirement for the award of degree of Bachelor of Business Administration.
This is the original work conducted by me. The information and data given in the report is
authentic to the best of my knowledge.

sunny
BBA 5th Semester

3
 ACKNOWLEDGEMENT

I express my sincere gratitude to Fiem industries Ltd and its entire staff for giving me this
wonderful opportunity to work and get to know more about the “Performance appraisal

I am also thankful to all members of the company for their co-operation and guidance. It’s a
moment of great pleasure for me to learn from this internship and submit a project report to
Department of Business Administration from Hindu College Sonipat.

I have been obliged to take value assistance and co-operation of a number of eminent.
Personalities, therefore I would like to express my deep sense of thanks and sincere regards to all
these members

Sunny
BBA 5th Semester

4
 EXECUTIVE SUMMARY

Human Resource Management (HRM) is the function within an organization that focuses on
recruitment of, management of, and providing direction for the people who work in the
organization. Human Resource Management can also be performed by line managers.

Human Resource Management is the organizational function that deals with issues
related to people such as compensation, hiring, performance management, organization
development, safety, wellness, benefits, employee motivation, communication, administration,
and training.

Performance appraisal refers to all the formal procedures used to evaluate an individual,
his contributions and potential. In other words, it is to plan and measure the performance of an
individual in terms of the requirement of the job or it is a process of finding out how effective
the organization has been at hiring and placing an employee.

Performance appraisal is a formal system of review and evaluation of individual or team

task performance. While evaluation of team performance is critical when teams exist in an
organization, the focus of performance appraisal in most firms remains on the individual
employees. Regardless of the emphasis, an effective appraisal evaluates accomplishments and
initiates plans for development, goals and objectives.

The Company is one of the leading manufacturers of automotive lighting & signaling
equipments and rear view mirrors. The Company was originally incorporated in India as Rahul
Auto Private Limited on February 6, 1989 in New Delhi under the Companies Act, 1956. We set
up our unit at HSIDC Industrial Estate, Rai, Sonepat (Haryana) for carrying on the business of
manufacturing rear view mirrors for two, three and four wheelers. We changed the name of our
Company to FIEM Industries Private Limited w.e.f. May 7, 1992. Subsequently, our Company
was converted into a public limited Company w.e.f. November 30, 1993, pursuant to which, the
name of our Company was changed to FIEM Industries Limited. During the year 1993-94, we
added additional facilities for manufacturing of automotive lighting and signaling equipments
such as head lamp, tail lamp, side indicator lamp, reflex Reflector, fog lamp, et

5
 TABLE OF CONTENT

CHAPTER-1
 INTRODUCTION

 NEED FOR THE STUDY

 IMPORTANCE OF THE STUDY

 OBJECTIVES OF THE STUDY

 METHODOLOGY

 LIMITATIONS

CHAPTER-2
 COMPANY PROFILE

CHAPTER-4
 CONCEPT OF PERFORMANCE APPRAISAL SYSTEM

CHAPTER-3
 DATA ANALYSIS & INTERPRETATION

CHAPTER-4
 FINDINGS & SUGGESTIONS

 CONCLUSION

 BIBLIOGRAPHY

 ANNEXURES

6
 INTRODUCTION

Human Resources Management:

Human Resource Management (HRM) is the function within an organization that

focuses on recruitment of, management of, and providing direction for the people who work in
the organization. Human Resource Management can also be performed by line managers.

Human Resource Management is the organizational function that deals with issues
related to people such as compensation, hiring, performance management, organization
development, safety, wellness, benefits, employee motivation, communication, administration,
and training.

Human resource management (HRM) is the strategic and coherent approach to

the management of an organization's most valued assets - the people working there who
individually and collectively contribute to the achievement of the objectives of the business.
[1]
 The terms "human resource management" and "human resources" (HR) have largely replaced
the term "personnel management" as a description of the processes involved in managing people
in organizations.[1] In simple words, HRM means employing people, developing their capacities,
utilizing, maintaining and compensating their services in tune with the job and organizational
requirement.

Human Resources Development:

Human Resource Development (HRD) is the framework for helping employees

develops their personal and organizational skills, knowledge, and abilities. Human Resource
Development includes such opportunities as employee training, employee career development,
performance management and development, coaching, mentoring, succession planning, key
employee identification, tuition assistance, and organization development.
The focus of all aspects of Human Resource Development is on developing the
most superior workforce so that the organization and individual employees can accomplish their
work goals in service to customers.

7
 Human Resource Development can be formal such as in classroom training, a
college course, or an organizational planned change effort. Or, Human Resource Development
can be informal as in employee coaching by a manager. Healthy organizations believe in Human
Resource Development and cover all of these bases.

Performance Appraisal System:

Performance appraisal refers to all the formal procedures used to evaluate an individual,
his contributions and potential. In other words, it is to plan and measure the performance of an
individual in terms of the requirement of the job or it is a process of finding out how effective
the organization has been at hiring and placing an employee.

Performance appraisal is a formal system of review and evaluation of individual or team

task performance. While evaluation of team performance is critical when teams exist in an
organization, the focus of performance appraisal in most firms remains on the individual
employees. Regardless of the emphasis, an effective appraisal evaluates accomplishments and
initiates plans for development, goals and objectives.

8
 NEED FOR THE STUDY

Appraising the performance of individuals, groups and organizations is a common

practice of all societies. While in some instances these appraisal processes are structured and
formally sanctioned, in other instances they are an informal and integral part of daily activities.
Consciously of unconsciously evaluate our own actions from time to time. In social interactions,
performance is conducted a systematic and planned manner to achieve widespread popularity in
recent years.

Performance appraisal is essential to understand and improve the employee's

performance through HRD. In fact, performance appraisal is the basis fore HRD. It was viewed
performance appraisal was useful to decide upon employee promotion / transfer salary
determination and the like. But the recent developments in human resources management
indicate that performance appraisal is the basis for employee development. Performance
appraisal indicates the level of desired performance level, level of actual performance and the
gap between these two. This gap should be bridged through human resources development
techniques like training executive development etc.

According to the past survey it was noticed that the performance appraisal system
in this company was not up to the mark. Hence there would be scope for giving few suggestions
as per my knowledge to improve the performance appraisal system which was quite essential for
the better performance of the employees.

9
 IMPORTANCE OF THE STUDY

Performance appraisals provide employees and managers with opportunities to discuss

areas in which employees excel and those in which employees need improvement. Performance
appraisals should be conducted on a regular basis, and they need not be directly attached to
promotion opportunities.

Personal Attention

During a performance appraisal review, a supervisor and an employee discuss the

employee's strengths and weaknesses. This gives the employee individual face time with the
supervisor and a chance to address personal concerns.

Feedback

Employees need to know when their job duties are being fulfilled and when there are
issues with their work performance. Managers should schedule this communication on a regular
basis.

Career Path

Performance appraisals allow employees and supervisors to discuss goals that must be
met to advance within the company. This can include identifying skills that must be acquired,
areas in which one must improve, and educational courses that must be completed.

Employee Accountability

When employees know there will be regularly scheduled evaluations, they realize that
they are accountable for their job performance.

Communicate Divisional and Company Goals

Besides communicating employees' individual goals, employee appraisals provide the

opportunity for managers to explain organizational goals and the ways in which employees can
participate in the achievement of those goals.

10
 OBJECTIVES OF THE STUDY

 To study the need and importance of “Performance Appraisal”.

 To portray the profile of “Fiem industries Ltd”.

 To study the performance appraisal implementation in Fiem industries Ltd

 To make data analysis and interpretation based on the perception of the employee in the
organization.

 To summarize and find certain suggestions for the impotent of Performance Appraisal
system in the company.

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 METHODLOGY OF THE STUDY

After the objective of the study has clearly stated, the next step in formal research project
is to determine the source from which the data is required to be collected. The data collection is
an interesting aspect of the study achieving data effectively the information consists of two types
of data. The diagram is as follows:

Data collections:

a) Primary data:

The primary data are those, which are collected freshly and for the first time, from the
employees directly. It is collected through the following methods.

1. Questionnaire: A structure of questionnaire was prepared and distributed among

the employees & workers.

2. Interview: Personal interviews and interaction with the employees and

contractor labour.

3. Observation: By observing the working environment.

b)Secondary data:

The secondary data are those which have already been collected by someone or else
which have been passed through statistical process. Sources of secondary data can be
categorized into two broad categories named published and unpublished statistics. Various
sources are available namely books, synergies monthly (Chakaravahini) books etc. and also
collected from various files, records and synergies casting Ltd.

12
Size:

A sample of 40 employees has been selected .Although it looks to be a small sample

keeping in view the large number of employees it has to be limited because of time
constraint(8 weeks).Even then the sample size is not considered to be small. It is enough
to draw conclusions.

Type:

Since employees from all levels (strata) namely the top level, the middle level, and the
lower level are bound to experience stress, the sample has to include employees from all
levels. Stratified random sampling technique was selected while preparing questionnaire
as this was the only technique that helped to draw conclusions accurately.

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 LIMITATIONS OF THE STUDY

As the study revolves around the performance appraisal of human resources aspects the
overall organization performance cannot be ascertained. In spite of giving honest and sincere
efforts there are several limitations, which are as follows:

 The period of study is only for about one months, which is a major constraint.

 The perception bias or attitude of the respondents may also act as hurdles to the study.

 The study is only confined to performance appraisal.

 The study cannot be oriented with all HRM practices followed by

 Fiem industries Ltd. because of the paucity of time requirements.

 The sample size taken for the research is small due to the constraint of time.

14
 COMPANY PROFILE

 ABOUT THE COMPANY

Fiem Industries Limited (FIEM) is one of the leading manufacturers of Automotive

Lighting, Signaling Equipments, Rear View Mirrors, Sheet Metal and Plastic Parts
in India with latest addition as Canister. With strong presence in automotive
components industry, company has diversified into LED Luminaries for indoor
and outdoor applications and Integrated Passenger Information System with LED
Display (IPIS). Company was founded by Mr. J.K. Jain, who is a first-generation
entrepreneur. He has a rich experience of about 45 years in automotive
components industry and is one of the pioneers of the automotive lighting
industry in India. Presently he is the Chairman & Managing Director of the
Company.

Company believes in manufacturing of high-quality products at a competitive cost

and has a track record of maintaining best standards in essentials parameters of
Quality, Cost, Development, Delivery and Management (QCDDM). Company
believes in in-house manufacturing and possesses a backward integrated
manufacturing infrastructure. Company has been consistently growing despite
the challenging macro-economic situation in the recent years, which reflects its
fundamental strength of resilience and dynamism.

15
 HISTORY

Fiem Industries Ltd is one of the leading manufacturers of automotive lighting & signaling
equipments and rear view mirrors. The Company is in the business of manufacturing and
suppliers of auto components mainly automotive lighting and signally equipments rearview
mirror prismatic mirror sheet metal parts and moulds and block and dies for two-wheeler and
four wheeler applications. Their main products are Automotive Lighting & Signaling
Equipments Rear View Mirrors Prismatic Mirror and Sheet Metal Parts.The company also
manufactures and supplies value added products such as a complete Rear Fender Assembly
for 2-wheelers which typically consists of rear fender (plastic) fitted with two turn signal
lamps tail lamps number plate reflex reflectors fitted with various mounting sheet metal
brackets. The company has one subsidiary company namely Fiem Industries Japan Co
Ltd.Fiem Industries Ltd was incorporated on February 6 1989 as private limited company
with the name Rahul Auto Pvt Ltd. The company set up a unit at Kundli Sonepat in Haryana
for carrying on the business of manufacturing rear view mirrors for two three and four
wheelers.In May 7 1992 the name of the company was changed from Rahul Auto Pvt Ltd to
Fiem Industries Pvt Ltd. In November 30 1993 the company was converted into a public
limited company and the name was changed to FIEM Industries Ltd. Also they shifted all
manufacturing facilities to the plant situated at Kundli Sonepat in Haryana having full
fledged testing laboratory for manufacturing automotive lamps & rear view mirrors. During
the year 1993-94 the company added additional facilities for manufacturing automotive
lighting and signaling equipments such as head lamp tail lamp side indicator reflex Reflector
fog lamp etc. In the year 1996 the company set-up a joint venture company namely FIEM
Sung San (India) Ltd in association with Sung San Co Ltd Korea and Daewoo Motors India
Ltd.In the year 2004 the company set up the Unit II in Kallukondapalli Hosur for
manufacturing head lamps tail lamps rear combination lamps side indicator lamps reflex
reflectors and rear view mirrors.In the year 2005 the company set up Unit III at
Kelamanglam Hosur Tamil Nadu for manufacturing sheet metal items viz. frame mudguards
stands guard exhaust pipe. Also they set up Unit IV at Mysore Karnataka for manufacturing
value added products such as assembly of rear fender for two wheelers.During the year the
company entered into Technical Support Agreement with Ichikoh Industries Ltd Japan. They

16
established overseas design centre and liaison office in Japan. Also they signed MOU for
establishing a Joint Venture company with Aspock Holding GmbH Austria. In September 30
2005 the company acquired 3250000 Equity Shares FIEM Sung San (India) Ltd and thus
FIEM Sung San (India) Ltd became a subsidiary company In the year 2006 the company
entered into a joint venture agreement with Korea Air Conditioner Co Ltd. for establishing a
company at Hosur Tamil Nadu. The company set up an EOU unit (Unit V) at Kelamanglam
Hosur for manufacturing mirror plates mirror assembly head lamps tail lamps and side
indicators. Also they set up Unit VI at Nalagarh in Himachal Pradesh for manufacturing of
lighting and signaling equipments and rear view mirrors During the year 2006-07 FIEM
Sung San (India) Ltd was amalgamated with the company with effect from April 1 2006. The
company came out the public issue of 4100001 equity shares and the equity shares were
listed on the Bombay Stock Exchange and National Stock Exchange with effect from
October 19 2006. In January 11 2007 the company acquired a new Industrial Plot measuring
around 7 (seven) Acres in Phase V Industrial Estate Rai Sonepat Haryana for future
expansion plans of the company.During the year 2007-08 the company entered into License
and Technical Assistance Agreement with BATZ S. Coop. of Spain for manufacturing of
Pedal Box Assembly. During the year 2008-09 the company signed strategic MoU for equity
participation by Ichikoh Industries Ltd Japan in which Ichikoh will extend the technical
assistance to the company for designing development and manufacturing of Automotive
Lightings & Rear View Mirrors for supplying to various car manufactures (OEMs) in India.
In March 2009 the company incorporated Fiem Industries Japan Co Ltd as a subsidiary
company in Japan. In June 2010 the company acquired a new Industrial Plot measuring
around 10.5 acre in Industrial Area Tapukara Alwar in Rajasthan. In July 2010 the company
set up Green Field Facility at Rai Industrial Area Sonepat in Haryana and commenced
commercial production. This plant is established with ultramodern manufacturing facilities
and latest technology keeping in view the growing business of the Company and well
equipped for meeting the growing demand of the OEMs. The company and Ichikoh
Industries Ltd signed an agreement to establish a joint venture which will be engaged in the
four-wheeled and two-wheeled vehicle lamp business. FIEM Industries Limited will hold a
34% stake in the joint venture. Also the company signed an MoU with Ichikoh Industries Ltd
Japan for forming a Strategic Global Fiem-Ichikoh Alliance for acquiring the 2-Wheeler

17
Automotive Lighting business in worldwide market.In March 2011 the company set up Unit
VIII at Alwar in Rajasthan for manufacturing plastic molded parts. The company
commenced commercial production with effect from March 11 2011.In 2012 the Company
has received Vendor Performance Award from one of its esteemed customers M/s. Suzuki
Motorcycle India Pvt. Ltd. The company has inked a MoU to technically collaborate with
BrightLite Systems Pte. Ltd Singapore. The company received 'Vendor Performance Award'
from Suzuki Motorcycle India for the year 2013. In 2014 the company received an award for
Best performance GRAND AWARD FOR QCDDM (Quality Cost Development Delivery
and Management) for the year 2014. The company has received 'Supplier Recognition
Award' from Harley Davidson India during the year 2014. In 2015 the company receives
LoA from EESL for 9W LED bulbs. The company also inks MoU with Asian Industry
during the year 2015.

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 MISSION, VISION & VALUES

 MISSION

 We are committed to give our Customers, Total Satisfaction in terms of

Quality, Cost and On time delivery.
 We shall pursue Continual Improvement in Product Quality by upgrading the
Technology and Training to employees.
 We will aim to be the market leader in all our products through Global
Competitiveness.
 We aim to continuously enhancing the value of stake holders.

 VISION
To be a Dominant Player in:
 Automotive Lamps, Mirrors, LED Products, Safety & Electronic Parts for Indian &
Global OEMs.


 VALUES

 Customer Focused Approach

 Strive for Quality, Technology & Innovation
 Continuous Improvement
 Respect for Individual and Company Ethics

19
  PRODUCT OF THE COMPANY

 HLA-156
BAJAJ PULSAR ROUND MFR


HLA-155
BAJAJ PULSAR DTSi


HLA-159
BAJAJ PLATINA

20
HLA-163
BAJAJ M-80


HLA-161N
HEAD LAMP ASSEMBLY WITH BLINKER LAMP VIKRAM


HLA-156B
BAJAJ DTSi UG3


HLA-157B
BAJAJ DISCOVER 110CC

21
 Manufacturing Facilities

The Company has established 9 manufacturing facilities in different parts of India with ultra-
modern infrastructure and state of the art technology and automation to manufacture world-class
products at competitive cost. These facilities are near to OEM Customers and hence facilitate
logistics cost savings and just-in-time delivery.

Our state of the art manufacturing facilities are located 4 in South India, 4 in North India and 1 in
Gujarat, West India. Our manufacturing facilities are ISO/TS 16949:2009, ISO 14000:2015 &
OHSAS 18001:2007 Certified. The products manufactured by FIEM conform to DOT, CCC,
ADR, AIS etc.

Manufacturing and supplying quality products at competitive cost and stringent timelines has
always been our hallmark. Customer engagement is as old as our history and a track record of
scaling up capacities in line with our customers’ growth plans and aspirations testify this.

All the facilities stand equipped with latest machinery and tools and the same shall further
enhance our productivity, cost efficiency and product quality. At FIEM, we aspire to lead the
‘Make in India’ drive from the front in all our business segments. The same aspiration shall
sustain our quest for the best in manufacturing.

All the factories of the Company are situated on Company owned land plots only and
strategically located near to OEMs with the flexibility to expand further capacity and supply to
new customers from the same location. This gives us the ample scope for further expansion and
scaling-up the business keeping in view the growth prospects.

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 Our Strength

Team FIEM, a highly skilled and experienced workforce always aims for fulfilling the customer’s
needs. Team FIEM strives for highest standards in manufacturing, adopting newest technology and
manufacture best quality products and ensure on time delivery to the customers. Continuous focus on
R&D is the backbone of our success

Faster product development cycle

Frugal Manufacturing with high quality Products

State of the Art Manufacturing Facilities

Comprehensive Government Approved R&D, with Gen Nxt software

Versatility in designing & development of both 2 Wheeler and 4 Wheeler products

23
 CONCEPT OF PERFORMANCE APPRAISAL SYSTEM

Introduction:

Appraising the performance of individuals, groups and organizations is a common practice of

all societies. While in some instances these appraisal processes are structured and formally
sanctioned, in other instances they are an informal and integral part of daily activities. Thus, teachers
evaluate the performance of students, bankers evaluate the performance of creditors, parents evaluate
the behaviour of their children, and all of us, consciously or unconsciously evaluate our "own actions
from time to time. In social interactions, performance is conducted in a systematic and planned
manner to achieve widespread popularity in recent years.

Meaning:

Performance appraisal is a method of evaluating the behavior of employees in the work spot,
normally including both the quantitative and qualitative aspects of hob performance. Performance
here refers to the degree of accomplishment of the tasks that make up an individual's job. It indicates
how well an individual is fulfilling the job demands. Often the term is confused with effort, but
performance is always measured in terms of results and not efforts. Some of the important features of
performance appraisal given, they are:

1. Performance appraisal is the systematic description of an employee's job- relevant strengths and
weaknesses.
2. The basic purpose is to find out how well the employee is performing the job and establish a plan of
improvement.
3. Appraisals are arranged periodically according to a definite plan.
4. Performance appraisal is not job evaluation. Performance appraisal refers to how well someone is doing
the assigned job. Job evaluation determines how much a job is worth to the organization and, therefore,

24
what range of pay should be assigned to the job.

Use of Performance Appraisal:

• Performance appraisal is helpful in assessing a firms human resources data must be

available that describe the promobility and potential of all employees.
• A well designed appraisal system provides a profile of the organization's human
resource strengths and weaknesses to support this effort.
• Performance evaluation ratings may be helpful in predicting the performance of job
applicants.
• Performance appraisal will point out employee specific needs for training and
development.
• Performance appraisal is useful in career planning and development.
• Performance appraisal results provide a basis for rational decisions regarding
compensation programmes.
• Performance appraisal data are also frequently used for decisions in several areas of
internal employee relations, including promotion, demotion, termination, lay-off. and
transfer.

• Performance appraisal is useful in assessment of employee potential.

• Performance appraisal can be used to determine whether HR programmes such as

selection, training, and transfers have been effective or not.

Objectives of Performance Appraisal:

Performance appraisal aims at attaining the different objectives, they are

1. To create and maintain a satisfactory level of performance.

1. To contribute to the employee growth and development through training, self and
management development programmes.
2. To help the superiors to have a proper understanding about their subordinates
3. To facilitate fair and equitable compensation based on performance.

25
2. To facilitate for testing and validating selection tests, interview techniques through
comparing their scores with performance appraisal ranks.
4. To provide information for making decisions regarding lay off, retrenchment etc.
3. To ensure organizational effectiveness through correcting employee for standard and improved
performance, and suggesting the change in employee behavior.

Appraisal Process:

Each step in the process is crucial and is arranged logically. Many organizations make every
effort to approximate the ideal process, resulting in first-rate appraisal systems. Unfortunately, many
others fail to consider one or more of the steps and, therefore have less- effective appraisal system.

Objectives of

Performance appraisal

Establish job

Expectations

Design an appraisal

programs

Appraise performance

Performance

Interview

Use appraisal data for

appropriate Purpose 26
1. Objectives of Appraisal:

Objectives of appraisal include effecting promotions and transfers, assessing training

needs, awarding pay increases, and the like. The emphasis in all these is to correct the problems.

2.Establish job expectations:

The second step in the appraisal process is to establish job expectations. This includes
informing the employee what is expected of him or her on the job.

3.Design appraisal programme:

Designing an appraisal programme posses several questions which need answers. They are (i)
Formal versus informal appraisal; (ii) Whose performance is to be assessed? (iii) Who are the raters?
(iv)What problems are encountered? (v) How to solve the problems? (vi) What should be evaluated?
(vii) When to evaluate? (viii) What methods of appraisal are to be used?

4.Performance Interview:

Performance interview is another step in the appraisal process. Once appraisal has been made
of employees, the raters should discuss and review the performance with the rates, so that they will
receive feedback about where they stand in the eyes of superiors.

5.Use of Appraisal data:

The final step in the evaluation process is the use of evaluation data. The data and information
generated through performance evaluation must be used by the HR department.

27
Methods of Performance Appraisal:

With the evaluation and development of appraisal system, a number of methods or

techniques of performance appraisal have been developed. The important among them.

Traditional Methods

1) Graphic Rating Scales:

Graphic rating scales compare individual performance to an absolute standard. In this method,
judgments about performance are recorded on a scale. This is the oldest and widely used technique.
This method is also known as linear rating scale or simple rating scale. The appraisers are supplied
with printed forms, one for each employee. These forms contain a number of objectives, behavior and
trait - based Qualities and characters to be rated like quality and volume of work, job knowledge,
dependability, initiative, attitude etc., in the case of workers and analytical ability, creative ability,
initiative, leadership qualities, emotional stability in the case of managerial personnel. These forms
contain rating of scales. Rating scales are of two types, viz., continuous rating scale and
discontinuous rating scales. In continuous order like o, 1, 2, 3, 4 and 5 and in discontinuous scale the
appraiser assigns the point to each degree. The points given by the rater know performance regarding
each character. The points given by the rater to each character are added up to find out the overall
performance. Employees are ranked on the basis of total points assigned to each one of them.

One reason for the popularity of the rating scales is its simplicity, which permits many
employees to be quickly evaluated. Such scales have relatively low

Design cost and high in case of administration. They can easily pinpoint significant dimensions of the
job. The major draw back to these scales is their subjectivity and low reliability. Another limitation is
that the descriptive words often used in such lies may have different meanings to different raters.

28
2) Ranking Method:

Under this method the employees are ranked from best to worst on some characteristics.
The rater first finds the employee with the highest performance and the employees with the lowest
performance in that particular job category and rates the former as the best and the later as the
poorest. Then the rater selects the next highest and next lowest and so on until he rates all the
employees in that group. Ranking can be relatively easy and inexpensive, but its reliability and
validity may be open to doubt. It may be affected by rater bias or varying performance standards.
Ranking also means that somebody would always be in the backbench. It is possible that the low
ranked individual in one group may turnout to be superstar in another group. One important
limitation of the ranking method is that size of the different between individuals is not well defined.
For instance, there may be little difference between those ranks third and fourth.

3) Paired Comparison Method:

This method is relatively simple. Under this method, the appraiser ranks the employees by
comparing one employee with all other employees in the group, one at a time. As illustrated, this
method results in each employee being given a positive comparison total and a certain %age total
positive evaluation.

Example: A B C D E

A - A A A A

B - - C D E

C - - - D E

D - - - - E

E - - - - -

To compute Employee's positive evaluations:

29
Number of positive evaluations X 100 = Employee's % Superior evaluation Total number
of evaluations

Employee A Employee B Employee C Employee D

(4/4)* 100=100% (0/4)* 100=0% (2/4)* 100=50% (1/4)* 100=25%

Employee E (3/4) * 100 = 75%

4) Forced Distribution Method:

The rater may rate his employees at the higher or at the lower end of the scale under the
earlier methods. Forced distribution method is developed to prevent the raters from rating too high or
too low. Under this method, the rater after assigning the points to the performance of each employee
has to distribute his ratings in a pattern to conform to normal frequency distribution. Thus, similar to
the ranking technique, forced distribution requires the raters (supervisors) to spread their employee
evaluation in a prescribed distribution. This method eliminates central tendency and leniency biases.
However, in this method employees are placed in certain ranked categories but not ranked within the
categories. Quite often work groups do not reflect a normal distribution or individual performance.
This method is based on the questionable assumption, as group of employees will have the same
distribution of excellent, average and poor performers. If one department has all outstanding
employees, the supervisor would find it extremely difficult to decide who should be placed in the
lower categories. Difficulties can also arise when the raters most explain to the employee why he was
placed in one grouping and others were placed in higher groupings.

5) Checklist Methods:

The Checklist is a simple rating technique in which the supervisor is given a list of statement
or words and asked to check statements representing the characteristics and performance of
each employee. There are three types of checklist methods, viz, simple checklist, weighted checklist
and forced choice method.

30
(a) Simple Checklist Method:

The checklist consists of large number of statements concerning employee behavior.

Example: Simple Checklist Method,

Wadia Industries Ltd.,
Performance Appraisal Form
Name of Employee: Number:

Designation:
Department:

Checklist of Qualities:

1. Behavior is the employee punctual in attending the office?

A) Yes B)No

2. Does the employee behave courteously with his superiors?

A) Yes B) No

3. Does the employee maintain sound customer relations'?

A) Yes B) No

4. Is the employee sincere in doing his job?

A) Yes B) No

The rater checks to include if the behavior of an employee is positive or negative to each
statement. Employee performance is rated on the basis of number of positive checks. The
negative checks are not considered in this method. A difficulty often arises because the
statements may appear to be virtually identical in describing the employee. The words or
statements may have different meanings to different raters.

31
(b)Weighted Checklist:

The weighted checklist method involves weighting different items in the checklist having
a series of statements about an individual, to indicate that some are more important than others.
The rater is expected to look into the questions relating to the employee's behavior, the attached
rating scale (or simply positive /negative statements where such a scale is not provided) and tick
those traits that closely describe the employee behavior. Often the weights are not given to the
supervisors who complete the appraisal process, but are computed and tabulated by someone
else, such as a member of the personnel unit. In this method the performance ratings of the
employee are multiplied by the weights of the statements and coefficients are added up. The
cumulative coefficient is the weighted performance score of the employee. Weighted
performance score is compared with the overall assessment standards in order to find out the
overall performance of the employee.

The weighted checklist, however, is expensive to design to design, since checklist for
each different job in the organization must be produced. This may prove time consuming also in
the end. Though the weighted checklist method is evaluative as well as development, it has the
basic problem of the evaluator not knowing the items, which contribute mostly of successful
performance.

(C) Forced Choice Method:

This method was developed at the close of World War II. Under this method, a large
number of statements in groups are prepared. Each group consists of four descriptive statements
(treated) concerning employee behavior. Two statements are most descriptive (favorable) and
two are least descriptive (unfavorable) of each m tetrad. Sometimes there may be five statements
in each group out of which one would be neutral. The actual weightings of the statements are
kept secret.

32
The appraiser is asked to select one statement that that mostly describes employee's behavior out
of the two favorable statements are kept secret. The appraiser is asked to select one statement that
that mostly describes employee's behavior out of the two unfavorable statements. The items are
usually a mixture of positive and negative statements. The intent is to eliminate or greatly reduce
the rater's personal bias, specially the tendency to assign all high or low ratings. The items are
designed to discriminate effective from ineffective workers as well as reflect valuable personal
qualities.

6) Critical Incident Method:

Employees are rated discontinuously, i.e., once in a year or six months under the earlier methods.
The performance rated may not reflect real and overall performance, as the rater would be serious
about appraisal method, i.e., critical incident method has been developed. Under this method, the
supervisor continuously records the critical incidents of the employee performance or behavior
relating to all characteristics (both positive and negative) in a specially designed notebook. The
supervisor rates the performance of his subordinates on the basis of notes taken by him. Since the
critical incident method does not necessarily have to be a separate rating system, it can be fruitfully
employed as documentation of the reasons why an employee was rated in a certain way.

The critical incident method has the advantage of being objective because the rater considers
the records of performance rather than the subjective points of opinion.

7) Essay or Free From Appraisal:

This method requires the manager to write a short essay describing each employee's
performance during the rating period. This format emphasizes evaluation of overall performance,
based on strengths weakness of employee performance, rather than specific job dimensions. By
asking supervisors to enumerate specific examples of employee behavior, the essay technique
minimizes supervisory bias and halo effect.

33
8) Group Appraisal:

Under this method, an employee is appraised by a group of appraisers. This group

consists of the immediate supervisor of the employee, to other supervisors who have close
contact with employee's work, manager or head of the department and consultants. The head of
the department or manager may be the chairman of the group and the immediate supervisor may
act as the coordinator for the group activities. This group uses any one or multiple techniques
discussed earlier. The immediate supervisor enlightens others members about the job characters,
demands, standards of performance etc. Then the group appraises the performance of the employee,
compares the actual performance with standards, find out the deviations, discusses the reasons
therefore, suggests ways for improvement of performance, prepares action plans, studies the need for
change in job analysis and standards and recommends change, it necessary. This method is widely
used for purpose of promotion, demotion and retrenchment appraisal.

9) Confidential Report:

Assessing the employee's performance confidentially is a traditional method of performance

appraisal. Under this method, superior appraises the performance of his subordinates based on his
observations, judgments and institutions. The superior keeps his judgment and report confidentially.
In other words the superior does not allowed the employee to know the report and his performance.
Superior writes the report about his subordinates, strengths. Weakness, intelligence, attitude to work,
sincerity, commitment, punctuality, attendance, conduct, character, friendliness, etc,

Though confidential report is a traditional method, most of the public sector organizations still
follow this method in appraising the employee's performance. This method suffers from a number of
limitations.

34
 Modern Methods

1) Behaviorally Anchored Rating Scales (BARS):

The Behaviorally Anchored Rating Scales (BARS) method combines elements of the traditional
rating scales and critical incidents methods. Using BARS, job behaviors from critical incidents -
effective and ineffective behaviors are described more objectively. The method employs individuals
who are familiar with a particular job to identify its major components. They then rank and validate
specific behaviors for each of the components. BARS require considerable employee participation;
its acceptance by both supervisors and their subordinates may be greater. Proponents of BARS also
claim that such a system differentiates among behavior, performance and results, and consequently is
able to provide a basis for setting developmental goals for the employee. Because it is job - specific
and identities observable and measurable behavior, it is more reliable and valid method for
performance appraisal.

2) Assessment Centre:

This method of appraising was first applied in German Army in 1930. Later business and
industrial houses started using this method. This is not a technique of performance appraisal by itself.
In fact it is a system or organization, where assessment is done by several individuals and also by
various experts by using various techniques.

In this approach individual from various departments are brought together to spend two or three days
working on an individual or a group assignment similar too the ones they'd be handling when
promoted. All assess get an equal opportunity to show their talents and capabilities and secure
promotion based on merit. An assessment model is shown below.

Human Resource Accounting deals with cost of and contribution of human resource to the
organization. Cost of the employee includes cost of manpower planning, recruitment, selection,
induction, placement, training, development, wages and benefits etc. employee contribution is the
money value of employee service which can be measured by labour productivity or value added by
human resources.

35
3) Management by objectives:

Although the concept or management by objectives was advanced by Peter F. Duckers way
back in 1954, it was described only recently as 'large range' in performance appraisal. Refinements
brought out by George Odione, Valentines, Humble and others have enriched the concept and made it
more acceptable all over the globe as an MBO in their work settings. Some of the companies which
implemented MBO reported excellent results, others disappointments, and many in decisions. Started
briefly, MBO is a process whereby the superiors and subordinate managers of an organization
jointly identify its common goals, define each individual's major areas of responsibility in terms of
results excepted of him, and use these measures of guides for operating the unit and assessing the
contribution of its members. Generally, the unit and assessing the contribution of its members.

Generally the 1VIBO is undertaken along the following lines.

■ The subordinate and superior jointly determine goals to be accomplished during the appraisal
period and what level of performance is necessary for the subordinate to satisfactory achieve
specific goals.
■ During the appraisal period the superior and subordinate update and later goals as necessary
due to changes in the business environment.

4) Psychological Appraisal:

Psychological appraisal are conducted to asses the employee potential, Psychological

appraisal consist of

(a) In - depth interviews

(b) Psychological tests
(c) Consultations and discussions with the employee
(d) Discussions with the superior's sub-ordinates and peers
(e) Reviews of others evaluations.

Evaluation is conducted in the areas of (a) employee's intellectual abilities, (b)Emotional stability, (c)
motivational responses, (d) sociability, (e) employees ability to comprehend the vents, and (f) ability
to foresee the future.

36
5) Counseling:

After the performance of the employee is appraised, the superior should inform the
employee about the level of his performance, the reason for the same, need for and the
methods of improving the performance. The superior should counsel the employee about
his performance and the methods of improving it.

Counseling is a planned, systematic intervention in the life of an individual who is

capable of choosing the goal and the direction of his development. Thus, the purpose of
counseling is to help the employee aware of his own performance, his strengths and
weakness, opportunities availabilities available for performance counseling can be done in
the form of performance interview by the superior.

The Post Appraisal Interview:

The post appraisal interview has been considered by most of the organizations, as well as
employees, as the most essential part of appraisal system. This interview provides the employee
the feedback information, and an opportunity to appraiser to explain the employee his rating, the
traits and behavior he has taken into consideration for appraisal etc.

It also gives the opportunity to employee to explain his views about the rates, standards or
goals, rating scale, internal and external environment causes for low level of performance, his
resources responsible for performance etc. further it helps both the parties to review standards,
set new standards based on the reality factors, and helps the appraiser to offer his suggestions,
help, guide and coach the employee for his advancement. Thus, the post appraisal interview is
designed to achieve the following objectives.

1. To let employees know where they stand.

2. To help employees do a better job by clarifying what is expected of them;
3. To plan opportunities for development and growth;
1. To strengthen the superior -subordinate working relationship by developing a mutual
agreement of goals;
2. To provide an opportunity for employees to experience themselves on

37
 performance related issues.

Relating Performance Appraisal to Rewarding:

Management should recognize and performance. The forms of recognizing and rewarding
performance include: (a) Private and public praise, (b) Written commendation, (c) published
commendation, (d) increased autonomy, (e) change in job title, (f) Status symbols like office
space, furnishings, (g) performance bonuses, (h) salary increases, (i) promotion in grade, or
increase in responsibilities and (j) various forms of supplementary compensation. Managers
should match the rewards both with performance and with the perception and needs of the
employee.

6) Managerial Appraisal:

It is relatively easy to appraise the performance of technical or operative employees

compared to managerial personnel. This is because; the performance of operative employees can
be measured quantitatively, whereas the performance of managers cannot be determined
quantitative terms. Harold Koontz has developed a concept of managerial functions, viz.,
planning, organizing, leading motivating, staffing and controlling. Performing a number of or
series of activities can perform each of these functions. For example, performing staffing
functions requires performing a series of activities like analyzing jobs of his department,
planning for human resources, deciding upon internal and external recruitment. Thus each
function and sub functions of manager are elaborated into a series of activities. The checklist
contain the questions in these areas is prepared with a five degree rating scale, i.e., externally
poor performance, neither poor nor fair performance and externally fair performance. Thus this
technique measures the performance of managers in managing organizational environment.

Importance of performance appraisal:

For many organizations the primary goal of an appraisal system is to improve

individual and organizational performance. There may be other goals, however. In fact,

38
performance appraisal data are potentially valuable for virtually every human resource
functional area.

39
System Of Performance Appraisal:

Performance appraisal is a nine-step process:

1. Establish performance standards.

2. Communicate standards/expectations to employee.
3. Measure actual performance due to the environment influences.
4. Adjust the actual performance due to the environmental influences.
5. Compare the adjusted performance what that of others and previous.
6. Compare the actual performance with standards and find out deviations, if any.
7. Communicate the actual performance to the employee concerned.
8. Suggest changes in job analysis and standard, if necessary.
9. Follow-up performance appraisal report.

At the first stage, performance standards are established based on the job description and
job specification. The standard should be clear, objective and incorporate all the factors.

The second stage is to inform these standards to all the employees including appraisers.

The third stage is following the instructions given for appraisal, measurement of
employee performance by the appraisers through observations, interviews, records and reports.

Fourth stage is finding out the influence of various internal and external factors on actual
performance. The influence of these factors may be either inducing or hindering the employee
performance. The measured performance may be adjusted according to the influence of external
and internal factors. The performance derived at this stage may be taken actual performance.

Fifth stage is comparing the actual performance with that of other employees and
pervious performance of the employee and others. This given an idea where the employee to the
influence of external and internal factors. The performance derived at this stage may be taken
actual performance.

40
 Sixth stage is comparing the actual performance with the standards and finding out
deviations. Deviations may be positive or negative. If employee's performance is more than
standards, it is positive deviation and vice-versa is negative deviation.

Seventh stage is communicating, the actual performance of the employee and other
employees doing the same job and discuss with him about the reasons for the positive or
negative deviations from the pre-set standards as the case may be.

Eighth stage is suggestions necessary changes in standards in standards, job analysis, and
internal and external environment.

Ninth stage is follow-up of performance appraisal report. This stage includes guiding,
counseling, coaching and directing the employee or making arrangements for training and
development of the employee in order to ensure improved performance. If actual performance
is very poor and beyond the scope of improvement it is necessary to take steps for
demotion or retrenchment or any other suitable measure.

41
 Key elements of performance appraisal system are presented in figure
below.

Human Performance Employee

Performance Appraisal Feedback

Performance

Measures

Performance – Related

Standards

Human Resources Employee

Decisions Records

42
 The usual steps are as follows

Plan the performance

Determine responsibility for appraisal

Appraisal period

Examine work performed

Appraisal the results

Conduct appraised interview

Discuss goals for next period

Problems in performance appraisal:

Performance appraisal has come under a heavy barrage of criticism. The list of the
problems that have been associated with performance appraisal are as follows:

• A potential weakness of traditional appraisal methods is that they lack

objectivity.

• A huge challenge that impedes an effective performance evaluation is the bias,

which can be either positive or negative.

• Some times halo error occurs when a manager generalizes one positive
performance feature or incident to all aspect of employee performance.
• Leniency: - Giving an undeserved high performance appraisal rating to an
employee.

43
 • Strictness: - Being unduly critical of an employee's work performance.

Establishment of performance appraisal criteria:

The most common appraisal criteria are traits, behaviors, competencies, goal achievement,
and improvement potential. The main objective of establishment of performance criteria is to
identify the aspects of a person's performance that an organization should evaluate.

• Traits: -

Certain employee traits such as attitude, appearance, and initiative are the basis for
some evaluations.

• Behaviors: -

When an individual's task outcome is difficult to determine, organizations may

evaluate the person's task related behavior or competencies. If certain behaviors result in
desired outcomes, there is merit in using them in the evaluation process.

• Competencies: -

This includes a broad range of knowledge, skills, traits, and behaviors that may be
technical in nature, relate to interpersonal skills or be business oriented.

• Goal achievement: -

If organizations consider ends more important than means, goal achievement

outcomes become an appropriate factor to evaluate.

• Improvement potential: -

When organizations evaluate their employees performance, many of the criteria used focus on
the past. From a performance management view point the problem is that you cannot change the past.
Unless a firm takes further steps, the evaluation data become merely historical documents. Therefore
firms should emphasize the future, including the behaviors and outcomes needed to develop the

44
employee, and in the process achieve the firm's goals. This involves an assessment of the employee's
potential.

Characteristics of an effective appraisal system:

The basic purpose of a performance appraisal system is to improve performance of individuals,

teams, and the entire organization. The system may also serve to assist in the making of administrative
decisions concerning pay increases, transfers, or terminations. In addition, the appraisal system must be
legally defensible. Organizations should seek an accurate assessment of performance that permits the
development of a plan to improve individual and group performance.

The following factors assist in accomplishing these purposes;

• Job related criteria: -

Job relatedness is perhaps the most basic criteria in employee performance appraisal.
More specifically, evaluation criteria should be determined through job analysis.

• Performance expectations: -

Managers and sub-ordinates must agree on performance expectations in advance of the appraisal
period. On the other hand, if employees clearly understand the expectations, they can evaluate their own
performance and may timely adjustments as they perform their jobs without having to wait for the
formal evaluation review.

• Standardization: -

Firm should use the same evaluation instrument for all employees in the same job category-
who work for the same supervisor. Supervisors should also conduct appraisals covering similar
periods for these employees. Regularly scheduled feedback sessions and appraisal interviews for
all employees are essential.

45
 Trained appraisers: -
The individual or individuals who observe at least a representative sample of job performance
normally have the responsibility for evaluating employee performance. This person is often the
employee's immediate supervisor. Training should be given to these appraisers to ensure accuracy and
consistency. A training module posted on the internet or company intranet may serve to provide
information for managers as needed.

• Continuous open communication: -

Most employees have a strong need to know how well they are performing. A good appraisal
system provides highly desired feedback on a continuing basis. There should be few surprises in the
performance review.

• Performance reviews: -

A performance review allows them to detect any errors or omissions in the appraisal, or an
employee may simply disagree with the evaluation and want to challenge it. Constant employee
performance documentation is vitally important for accurate performance appraisal.

• Due process: -

Ensuring due process is vital. If the company does not have a formal grievance procedure, it should
develop one to provide a employees an opportunity to appeal appraisal results that they consider
inaccurate or unfair. They must have a procedure for pursuing their grievances and having them
addressed objectively.

46
 DATA ANALYSIS AND INTERPRETATION

Human Resources are the greatest assets for any organization. These recourses should be
developed to their fullest extent for the efficient functioning of an organization and their
performance needs to appraise continuously.

The present study is aimed at analyzing the “Performance Appraisal system” at FIEM
INDUSTRIES LTD at RAI. There is a felt, need and justification to conduct surveys and to know
the perceptions of employees regarding existing practices. A structured questionnaire has been
surveyed among 40 respondents by adopting strata technique. And their perceptions are analyzed
and interpreted in this chapter.

For the purpose of survey, a sample of 40 employees has been taken into consideration
with a view to assess the "Performance Appraisal System" in FIEM INDUSTRIES LTD
LIMITED Performance appraisal helps in the assessment of individual potential.

47
Table-4.1 Performance Appraisal is the assessment of
individual potential.
Sr.No. Rating Scale No. of In%
Respondents
1 Strongly Agree 7 17.5
2 Neutral 4 10
3 Strongly Disagree 0 0
4 Agree 29 72.5
5 Disagree 0 0
Total 40 100

Graph-4.1

30
25
20

15
10 Series1

5
0
Strongly Neutral Srtongly Agree Disagree
Agree Disagree

Analysis:

From the above table-4.1 it can be known that 72 % of respondents have agreed about
the assessment of individual potential and 17.5 % of them have strongly agreed of the above
statement and 10 % of the employees are in a neutral stage and where none of them have

48
 disagreed for the above statement. So majority of the respondents i.e. 72.5 % of the respondents
have agreed about the assessment of individual potential.

Interpretation:

From the above analysis we can interpret that, some of the employees were in neutral
position, because the appraisal system in the organization was not in a full fledge way.

Table-4.2

Performance Appraisal system followed in the organization is rational and fair.

S.No. Rating Scale No. of ln%

respondents
1. Strongly Agree 1 2.5
2. Neutral 12 30
3. Strongly Disagree 1 2.5
4. Agree 22 55
5. Disagree 4 10
Total 40 100
Graph-4.2

49
 25

20

15

10 Series1

0
Strongly Neutral Srtongly Agree Disagree
Agree Disagree

Analysis:

From the above table-4.2 it can be known that, 55% of respondents have agreed that die
performance appraisal system followed in the organization rational and fair and 30 of the
respondents are in neutral stage. Where as 2.5pciceiU of the respondents have agreed for the
above statement and 2.5petce&t of the respondents have strongly disagreed, where 10 % of the
respondents have disagreed for the above statement.

Interpretation:

From the above analysis we can interpret that, some of the employees were in neutral
position. Because the organization doesn’t following the company’s policies fairly.

50
Table-4.3

Job expectations are informed and the superiors set the tasks.

S, No. Rating Scale No. of respondents In%

1. Strongly Agree 3 7.5
2. Neutral 10 25
3. Strongly Disagree 0 0
4. Agree 24 60
5. Disagree 3 7.5
Total 40 100

Graph-4.3

51
 25

20

15

10 Series 1

0
Strongly Neutral Strongly Agree Disagree
Agree Disagree

Analysis: From the above table-4.3 it can be known that, 60% of respondents have agreed
that the job expectations are informed and the superiors set die tasks. And 25% of die
respondents are in neutral stage and 7,5% strongly agree for above statement and where as 7.5%
of the respondents disagree for die above statement, none of them are in a stage of strongly
disagree opinion.

Interpretation: The above analysis shows that, some of employees were in neutral position.
Because the job expectations were not informed, and the tasks were not assigned by superiors
properly.

Table-4.4

Performance Appraisal followed in the Organization helps to the Training and development needs of
employee.

S .No. Rating Scale No. of In%

respondents
1. Strongly Agree 6 15
2. Neutral 4 10
3. Strongly Disagree 0 0
4. Agree 27 67.5
5. Disagree 3 7.5
Total 40 100

52
Graph4.4
30
25
20
15
10 Series 1
5
0
Strongly Neutral Strongly Agree Disagree
Agree Disagree

Analysis:

From the above table-4.4 it is found that, 67.5% of respondents have agreed for the performance
appraisal followed in the organization helps to assess the training and development needs of
employee and I5 % of them have strongly agreed in ID-% of the respondents are in neutral stage
and the remaining 7.5% of the respondents are in disagreed opinion. Where none of them are is
strongly disagreed opinion.

Interpretation: The above analysis states that, majority of the employees opined that a good
performance appraisal system in the organization, helps to train and develop an employee in all
aspects.

Table-4.5

The Performance appraisal in the organization helps to recognize the competence and potential of
an individual.

S.No. Rating Scale No. of ln%

respondents

1. Strongly Agree 4 10

2. Neutral 3 7.5
3. Strongly Disagree 1 2.5
4. Agree 30 75

53
 5. Disagree 2 5
Total 40 100

Graph-4.5

30
25
20
15
Series 1
10
5
0
Strongly Neutral Strongly Agree Disagree
Agree Disagree

Analysis:

From the above table-4.5 it is found that, 75% of respondents have agreed for the performance
appraisal in the organization helps to recognize the competence and potential of individual and 10 %
of the respondents have strongly agreed, and 7.5% of the respondents are in neutral stage and 5% are
in disagreed opinion where as 2.5% of the respondents strongly disagree for the above statement

Interpretation:
The above analysis elicits that, some of the employees were in neutral and disagree position.
Because the appraisal process in the organization is not that much effective.

54
55
Table-4.6

Employees are happy with the assessment of performance followed in the organization.

No. of
S.No. Rating Scale ln%
Graph-4.6 respondents
1. Strongly Agree 3 7.5

2. Neutral 14 35
3. Strongly Disagree 0 0
4. Agree 18 45
5. Disagree 5 12.5
Total 40 100

18
16
14
12
10
8
Series 1
6
4
2
0
Strongly Neutral Strongly Agree Disagree
Agree Disagree

Analysis: From the above table-4.6 it is found that, 45% of respondents have agreed that they
are happy with the assessment of performance appraisal followed in the organization. And 35 % of
the respondents are in neutral stage and 12.5% of the respondents are in a disagreed stage where 7.5%
have strongly agreed for the above statement but none of them have strongly disagreed for this
statement.

56
Interpretation :We can interpret that, most of the employees were in disagree and neutral
position. Because the assessment system in the organization was not up to the mark.

57
Table-4.7

Employees have been appraised fairly according to the company's policies.

S. No. Rating Scale No. of In %

respondents
1. Strongly Agree 2 5
2. Neutral 13 32.5
3. Strongly Disagree 0 0
4. Agree 23 57.5
5. Disagree 2 5
Total 40 100

Graph-4.7

25

20

15

10 Series 1

0
Strongly Neutral Strongly Agree Disagree
Agree Disagree

Analysis: From the above table-4.7 it is found that, 57.5% of respondents have agreed that the
employees have been appraised fairly according to the company policies and 32.5% of the
respondents are neutral stage and 5% of them are strongly agree and where as 5% of the respondents
disagree for the above opinions and none of them have disagree for the above opinion.

Interpretation: Here we can state that, most of the employees were in disagree and neutral
position. Because performance appraisal was not done fairly according to the companies policies.

58
Table-4.8 Advises and suggestions are given to the employees during the appraisal process.

S. No. Rating Scale No. of In%

respondents
1. Strongly Agree 3 7.5
2 Neutral 15 37.5
3. Strongly Disagree 0 0
4. Agree 10 25
5. Disagree 12 30
Total 40 100

Graph-4.8

16
14
12
10
8
6 Series 1
4
2
0
Strongly Neutral Strongly Agree Disagree
Agree Disagree

Analysis: From the above table4.8 it is found that, 30 % of respondents have disagreed that
advises and suggestions are given to the employees during the appraisal process and 25% of them
have agreed and 7.5% of the respondents strongly agree and majority of the respondents i.e. 37.5%
are in a neutral stage and none of them have disagreed for the above statement.

Interpretation: The above analysis exhibits that, employees are expecting many more
suggestions and advises, during the appraisal process that would be helpful for their career.

59
Table-4.9

The employees accept the appraisal feed back as.

S. No. Rating Scale No. Of %

respondents
1. Positive way 3 7.5
2. Uninteresting 15 37.5
3. Negative way 0 0
4. Neutral 10 25
Total 40 100

Graph-4.9:

16
14
12
10
8 Series 1
6
4
2
0
Positive way Uninteresting Negative way Netural

Analysis: From the above table-4.9 it is found that, 50% of respondents have a positive
way regarding acceptance of the appraisal feed back. And 47.55 of them are in a neutral
opinion and 2.5% of the respondents feel it uninteresting on the above statement. And none
of them have a negative acceptance of this statement

Interpretation:

This analysis shows that, employees are not much interested in taking the appraisal feedback.

60
Table-4.10 The appraiser of the company should be.

S.No. Rating Scale No. of In%

respondents
1. Superior 13 32.5
2. HOD 25 62.5
3. Subordinate 1 2.5
4. Peer groups 1 2.5
Total 40 100
Graph-4.10

25

20

15
Series 1
10

0
Superior Subordinate

Analysis: From the above table-4.10 it is found mat, 62.5perecent of respondents feel that
their HOD should be their appraiser and 32.5% of them feel that their superior should be the
appraisal and 2.5% of the respondents feel that their subordinates and peer groups should be
the appraiser.

Interpretation: This states that, the appraiser should be the head of the department, the employee
feel that he is the right person to evaluate their performance.

61
Table-4.11

Employee need to be assessed as.

No. of
S.No. Rating Scale In%
respondents
1. Once in 3 months 8 20
2. Once in 6 months 11 27.5
3. Once in a year 21 52.5
Total 40 100

Graph-4.11

25

20

15

10 Series 1

0
Once in 3 Once in 6 Once in a
months months year

Analysis: From the above table-4.11 it is found that, 52.5% of respondents feel that their
appraisal system should be once in a year and 27.5% of the respondents feel that it should be
twice in a year (6 months) and where as 20% of the respondents feel that it should be for every 3
months.

Interpretation: Here, the employees felt that, they need to be assessed once in a year, as
they felt it is a right period of time to assess the performance .

62
Table-4.12

The performance appraisal followed in the organization makes the employees.

S.No Rating Scale No. of In%

Respondents
1 Motivating 38 95
2 De motivating 3 5

Graph-4.12

40
35
30
25
20 Series 1
15
10
5
0
Motivating

Analysis: From the above table-4.12 it is found that, 95% of respondents are motivated towards
performance appraisal followed in the organization and 5 % of the respondents demotivates for the
above statement.

So majority of the respondents i.e.. 95 % of the respondents have motivated towards the appraisal
system followed in the organization.

Interpretation: From the above study, employees felt performance appraisal system as a
motivating factor.

63
Table-4.13

Types of errors / problems have impact on performance rating in the Organization.

S. No Rating Scale No of In%

Respondents
1 Influence 9 22.5
2 Attitude 16 40
3 Biased 8 20
4 Personal Grudge 1 2.5
5 Subjectivity 5 12.5
6 Status Effect 1 2.5

Graph-4.13

20
15
Series 1
10
5
0
Influence Attitude Biased Personal Subjectivity
Status Effect
Grudge

Analysis: From the above table-4.13 it is observed that, appraisal system is rated by attitude
that is 40% and 22.5% of the respondents by influence and 20% by biased, 12.5% by subjectivity
and 2.5% by personal grudge and remaining 2.5% by status effect.

Interpretation: The employees opined that, attitude factor have a greater impact on the
performance appraisal system.

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Table -4.14

Feedback on Performance is communicated after assessment of the Performance.

S.No Rating Scale No of In%

Respondents
1 Yes 19 47.5
2 No 21 52.5
Graph-4.14

21

20.5

20

19.5
Series 1
19

18.5

18
YES No

Analysis: From the above table-4.14 it is found that, 52.5% of respondents disagree that feed
back on performance is communicated after assessment of the performance appraisal. And 47.5%
of the respondents agree for the above statement.

So majority of the respondents i.e. 52.5 % of the respondents have disagreed that the
feedback on performance is communicated after assessment of the performance appraisals.

65
Interpretation: Here, the some of the employees express their view that, the
performance feedback need not be communicated after the assessment, while some of them
felt that it is essential.

66
Table-4.15

Employees are aware of 360-degree appraisal.

S.No Rating Scale No of Respondents In%

1 Yes 11 27.5
2 No 29 72.5

Graph-4.15

30

25

20

15
Series 1
10

0
YES No

Analysis:

From the above table-4.15 it is found that, 72.5% of respondents are aware of 360-
degree appraisal and 27.5% of die respondents are not known of 360-degree appraisal.

So majority of the respondents i.e.. 72.5 % of the respondents have agreed that they
were aware of 360 degree appraisal

Interpretation:

Here from the above study it is known that, the employees are not completely aware of 360-
degrees appraisal system.

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 FINDINGS

 More than half of the employees (72.5%) agree that Performance Appraisal is the
assessment of individual potential.
 Some of the employees (30%) neutral that Performance Appraisal system followed in
the organization is rational and fair.
 Some of the employees (25%) neutral that Job expectations are informed and the
superiors set the tasks.
 Most of the employees (67.5%) agree that Performance Appraisal followed in the
Organization helps to the Training and development needs of employee.

 Some of the employees (5%) disagrees that The Performance appraisal in the
organization helps to recognize the competence and potential of an individual
 Less than half of the employees (35%) disagrees that they are happy with the
assessment of performance followed in the organization.
 most of the employees (32.5%) neutral that they have been appraised fairly according
to the company's policies.
 Most of the employees (30%) disagrees that Advises and suggestions are given to the
employees during the appraisal process.
 Most of the employees (37.5%) uninterestingly accept the appraisal
feedback.
 Most of the employees (62.7%) feel that appraisal should be given by HOD.
 Most of the employees (52.5%) that they need to be assessed as once in a year.
 All most of the employees (95%) feels that the performance appraisal followed in the
organization makes the employees Motivated.
 Most of the employees (40%) think that attitude have impact on performance rating in
the Organization.
 Most of the employees (52.5%) do not agree that Performance is communicated after

68
 assessment of the Performance.

SUGGESTIONS

As per the study the following are the suggestions:

 The Performance Appraisal in the organization should be in a full fledge way so that

the others will be accepting this.

 As the Performance Appraisal is helpful to the employees by the assignment of

superiors task by training & development which should be more effective so that the

other employees will also be attracted.

 The Performance Appraisal should be assist effectively to the employees as it

recognizes the competence and potential of an individual.

 Employee’s appraisal should be fairly done according to the companies policies so

that it will assist the performance of the employees.

 The company should give some advises and suggestions to the employees during the

process and should get there feedbacks about the process.

 The employees should assess and appraised by their HOD once in a year.

 The employees should be aware of 360 degrees appraisal and the organization should

follow this to motivate the employees.

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 CONCLUSION

■ The options required strong motivation to face the challenges.

■ Proper training and satisfaction at all levels will be the strongest foundation to

launch an assault on the challenges and convert the challenges to opportunities

through effective performance appraisal measures in the organization.

Industry most response like wise

 In future performance appraisal measures will have to be planned in relation to the

changes taking place.

 The performance measures leads exist both at fresh entry level as well as to continuing

education level for working personnel.

 An effective safety measures based on emerging trends suggests model for achieving the

targets which will make paper industry in India truly competitive.

70
 BIBLIOGRAPHY
Books:

 Donald L. Kirkpatrick, 2006, Improving Employee Performance through Appraisal and

Coaching.
 Richard Rudman, 2003, Performance Planning and Review.
 Roger E. Herman, 1997, The Process of excelling, oak Hill press.
 P. Subba Rao, 2006, Essentials of Human Resource Management and Industrial
Relations, Himalaya Publishing House.

Journals:

 Gitam Journal of Management.

 Journal of Occupational and Environmental medicine.
 Indian Journal of Social Work.
 Indian Journal of Human Resource.

 www.fiemindutries.com
 www.google.com

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 ANNEXURE

1. Is Performance Appraisal helps in the assessment of individual potential?

Strongly Agree Agree

Neutral Disagree

Strongly Disagree

2. Does the Performance Appraisal system followed in the organization is rational and fair?

Strongly Agree Agree

Neutral Disagree

Strongly Disagree

3. Whether the Job expectations are informed and the superiors set the tasks?

Strongly Agree Agree

Neutral Disagree

Strongly Disagree

72
4. Does the performance Appraisal followed in the organization helps to assess
the training and development needs of employee?

Strongly Agree Agree

Neutral Disagree

Strongly Disagree

5. Does the Performance appraisal in the organization helps to recognize the

competence and potential of an individual?

Strongly Agree Agree

Neutral Disagree

Strongly Disagree

6. Whether the employees happy with the assessment of Performance followed in the

organization?

Strongly Agree Agree

Neutral Disagree

Strongly Disagree

7. Does the Employees appraised fairly according to the company’s policies?

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 Strongly Agree Agree

Neutral Disagree

Strongly Disagree

8. Does the Advises and suggestions are given to the employees during the

appraisal process?

Strongly Agree Agree

Neutral Disagree

Strongly Disagree

9. How do the employees accept the appraisal feedback?

Positive way Negative way

Uninteresting Neutral

10.Who should be the appraiser?

Superior Subordinate

HOD Peer group

11.How often should an employee be assessed?

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 Once in 3months

Once in 6months

Once in a year

12. How the performance appraisal followed in the organization?

Motivate

Denominative

13. What types of errors / problems have impact on performance rating in

the organization?

Influence Biased Subjectivity Status Effect

Attitude Personal Grudge

14. Whether the Feedback on performance communicated after assessment of the

Performance?

Yes No S

15. Are you aware of 360-degree appraisal?

Yes No

75