Laxmi 6.12.17

People differ in their abilities and their aptitudes.
There is always some difference

between the quality and quantity of the same work on the same job being done by two different
people. Performance appraisals of Employees are necessary to understand each employee’s
abilities, competencies and relative merit and worth for the organization. Performance appraisal
rates the employees in terms of their performance.
Performance appraisals are widely used in the society. The history of performance
appraisal can be dated back to the 20th century and then to the second world war when the merit
rating was used for the first time. An employer evaluating their employees is a very old concept.
Performance appraisals are an indispensable part of performance measurement. Performance
appraisal is necessary to measure the performance of the employees and the organization to
check the progress towards the desired goals and aims.
Performance appraisal is the ongoing process of evaluating and managing both the
behavior and human outcomes in work place.
Performance appraisal is a process of identifying, evaluating and developing the work
performance of employees in the organization, so that the organizational goals and objectives are
more effectively achieved, while at the same time benefiting employees in terms of recognition,
receiving feedback, catering for work and offering career guidance.
Performance appraisal is a formal management system that provides for the evaluation of
the quality of an individual’s performance in an organization.
The latest mantra being followed by organizations across the world being – "get paid
according to what you contribute" – the focus of the organizations is turning to performance
management and specifically to individual performance. Performance appraisal helps to rate the
performance of the employees and evaluate their contribution towards the organizational goals.
If the process of performance appraisals is formal and properly structured, it helps the employees
to clearly understand their roles and responsibilities and give direction to the individual’s
performance. It helps to align the individual performances with the organizational goals and also
review their performance. Performance appraisal takes into account the past performance of the
employees and focuses on the improvement of the future performance of the employees.
Performance appraisal is the process of obtaining, analyzing and recording information
about the relative worth of an employee. The focus of the performance appraisal is measuring
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and improving the actual performance of the employee and also the future potential of the
employee. Its aim is to measure what an employee does.
According to Phlippo, a prominent personality in the field of Human Resources,
"performance appraisal is the systematic, periodic and an impartial rating of an employee’s
excellence in the matters pertaining to his present job and his potential for a better job."
Performance appraisal is a systematic way of reviewing and assessing the performance of an
employee during a given period of time and planning for his future. It is a powerful tool to
calibrate, refine and reward the performance of the employee. It helps to analyze his
achievements and evaluate his contribution towards the achievements of the overall
organizational goals. By focusing the attention on performance, performance appraisal goes to
the heart of personnel management and reflects the management's interest in the progress of the
employees.
NEED FOR THE STUDY:
Performance appraisal is the process of obtaining, analyzing and recording information

about the relative worth of an employee. The focus of the performance appraisal is measuring
and improving the actual performance of the employee. Its aim is to measure what an employee
does.
Performance appraisal is necessary to provide information about the performance ranks
basing on which decisions regarding promotion, training and development as well as long term
man power planning and organization development are taken.
Thus there is a need to know the performance of every employee in the organization to
provide feedback information about the level of achievement and behavior. This information
helps in analyzing the performance of an employee existing in the organization there by
suggesting changes wherever necessary for improvement.
Because of the growing importance of performance appraisal system in several
organizations in the present scenario, the present study has been taken up in MGCH and RI,
Visakhapatnam. The main reason for selecting MGCH and RI is because it is one of the biggest
private organization health care sector having different departments.
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OBJECTIVES OF THE STUDY:
The present study is based on the following objectives.
 To examine the effectiveness of performance appraisal in the organization.

 To know the present performance appraisal method in the organization.
 To study the impact of present performance appraisal on the employee’s career
development.
 To know whether the performance appraisal system of organization increase the

productivity of employees or not.
 To suggest the necessary measures to improve the quality of performance appraisal

system in the organization.
RESEARCH METHODOLOGY:
Work performance appraisal systems assess the employee's effectiveness, work habits
and also the quality of the work produced. The research methodology used to evaluate the
accuracy and effectiveness of the appraisal instrument takes different forms and depends on the
type of career professional under the microscope for evaluation, but the foundation for all
evaluations rests on several basic research techniques. The evaluation methodology collaborates
the original employee evaluations and performance appraisals through supporting multiple
research reporting measures. The diagram is as follows:
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DATA COLLECTION
PRIMARY DATA SECONDARY DATA

1) Personal interview with various 1) Information from various
employees of organization. publications and journals.
2) About 50 employees were interviewed 2) Personal reports of through a questionnaire.
Data Collection:
The data for the purpose to study was collected from the two sources.
 Primary Data
 Secondary data
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.
It includes collection of first hand information from the response who are concerning with the
MGCH & RI. It can be viewed as survey. Here the researcher has collected the primary data by
means of questionnaire, which are specially designed to collect the necessary information. All
honesty efforts have been made to eliminate biasness by segregating the extreme responses,
loaded personnel opinion.
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 2 broad categories named published and unpublished statistics. Various sources are available
namely books, magazines etc. and also collected from various files, records and journals.
Selection of Sample:
A sample survey is conducted to collect the data needed for the study. The technique of random
sampling was used for administering the questionnaire. Among 300 employees, 105 of them
were studied under random sampling. The selection of employee is based randomly. The target
group of this study was executives and staff belonging to different departments
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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 60 days, which is a major constraint.
 The sample size taken for the research is small due to the constraint of time.
 Only a few employees from each designation level are taken for the survey due to
shortage of time.
 The information provided by some of the employees might not reveal the actual facts
because they might feel that they are under constant vigil of management.
 Due to time constraint and hectic schedule of the employees sometimes found
difficulty in interaction with employees.
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History:
In between the 1950's and 1980's the Health care facilities and personnel increased
substantially, but gradually due to the fast population growth, the number of licensed medical
practitioners per 10,000 individuals had fallen in the 1980's to 3 per 10,000 from the 1981 level
of 4 per 10,000. There were approximately ten hospital beds per 10,000 individuals in 1991.
Primary health centers are majorly the cornerstone of the rural health care system.
In the year 1991, India constituted about 22,400 primary health centers, 11,200 hospitals,
and 27,400 dispensaries. Such facilities were the part of a tiered health care system which
funnels more difficult cases into urban hospitals while attempting to provide routine medical care
to the vast majority in the countryside. Primary health centers and sub-centers would majorly
rely on trained paramedics to meet most of their needs.
Indian healthcare industry operates in both of the private and public sectors. The public
sectors are healthcare system consists of facilities run by the central and state governments. The
facilities are provided freely or at subsidized rates to lower income families in rural and urban
areas. However, further the Indian healthcare industry is going through a growth phase due to its
healthy economy. As the country's middle class continues to grow, this industry's growth will
increase. India's ever-growing middle class are able to afford quality healthcare. With such an
increased ability to pay for better healthcare, the demand for healthcare services has grown from
$4.8 billion in 1991 to $22.8 billion in 2001-2002. Today 50 million Indians are able to afford
western medicine and over 150 million have annual incomes of more than 1000 US dollars.
The health care industry is a sector within the economic system which provides products
and services like diagnosis, treatment and prevention of diseases, illness and injury. Health care
is delivered by practitioners from the fields of medicine, nursing, psychiatry, dentistry and
others.
Healthcare contributes to 5.25% of GDP expenditure. There is a very large market
potential in India. Only 20% of this industry potential is tapped. The government cannot afford
to spend the necessary amount and hence it opens up a large area for private investors. The
factors for the boom of this industry are more options in healthcare financing, growing economy,
saturation of other sectors like IT and retail and the different models of healthcare delivery. The
key players of this industry (on basis of number of beds) are Apollo, Fortis, Arvind Eye care,
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Max Hospitals etc. The regulators of this industry are Government of India, Directory of Health
and Family Welfare, Ministry of Health and Family Welfare, Indian Council of Medical
Research, Central Drug Standard Control Organization.
The growing population with a much deeper pockets and low government participation
has lead to higher demands where people are willing to pay high costs for proper medical care.
India’s unmet demand for health care facilities, rapidly changing demographics, increasing
private spending on health care and a readily available intellectual pool are fuelling the growth of
the healthcare industry and making it highly attractive for investors.
Size of the industry:
Indian healthcare industry comprises of hospitals and allied sectors which is projected to
grow 23 % per annum to touch US$ 77 billion by 2012 and according to the current estimated
size of US$ 35 billion. The Industry has registered a growth of 9.3 % between 2000-2009, as
compared to the sect oral growth rate of emerging economies such as China, Brazil and Mexico.
There would be increase in number of public and private healthcare facilities which are expected
to propel demand for the industry, accounting for another US$ 6.7 billion.
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Table No : 2.1
There would be increase in number of public and

private healthcare facilities which are expected to
Size of the Industry
propel demand for the industry, accounting for
another US$ 6.7 billion
Geographical All the Major Cities like Mumbai, Delhi, Bangalore,
distribution Hyderabad, Pune and Chennai.
Indian healthcare industry comprises of hospitals and
Output per annum allied sectors which is projected to grow 23 % per
annum to touch US$ 77 billion by 2012
The expenses of this industry comprises 5.25% of the
Market capitalization
GDP
Total contribution to the economy/ sales

Indian Government Expenditure on health care is the highest amongst all the developing
countries. The expenses of this industry comprise 5.25% of the GDP.
Healthcare Industry is largest in the world with revenues over $3 trillion. Indian
healthcare industry is worth about Rs.100, 000 crores accounting 5% of GDP. Fastest growing
industry in India with CAGR of about 30% employees about 80 lakhs people work directly and
indirectly.
 Total Turnover Rs. 100,000 Cr. p.a.
 Hospitals & NH 40%
 Others 7%
 Labs & Diagnostics 12%
 Pharmacy & Supplies 20%
 Allopathic Doctors 22%
Motivation:
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Healthcare is one of India’s largest sectors, in terms of revenue and employment. The
private sector accounts for more than 80% of total healthcare in India. Health is a sector which
will never get affected by recession.
Factors for the boom of the Healthcare Industry of India:
Strong Indian Economy:
India, the 4th largest economy in terms of Purchasing Power Parity will overtake Japan
and reach the 3rd place by 2020.
More options for healthcare financing:
Health financing is becoming a preferred tool to cover for most healthcare expenditures.
It involves arranging for payment of a health service that has been arranged under the financing
contract. FDI in health insurance has rose from 26% to 49% which would result in surge of
international players & even more customized offerings targeting all sections of society.
Government Initiatives:
National Rural Health Mission (NRHM) has been launched in the year 2005 by the
Government. The main aim is to provide quality healthcare for all and there would be an increase
in the expenditure on healthcare from 0.9 % of GDP to 2-3 % of GDP by 2012. According to
Union Budget 2010-11 there is an increased allocation for Ministry of Health and Family
Welfare from US$ 4.2 billion in 2009-10 to US$ 4.8 billion in 2010-11.
 The priority of strengthening the PHCs for 24x7- today reported by the States there are
8,755 24x7 PHCs having three nurses each by the government system.
 In the last two-and-a-half years there are more than 50 lakh women who have been
brought under the Janani Suraksha Yojana (JSY) for good institutional deliveries.
 There is 4,380 Para medical staff having been appointed on contract and 6,232 doctors,
2,282 specialists, 11,537 staff nurses appointed on contract in the States which could reduce the
human resource gaps in many institutions.
 IPH standards have been finalized and a first grant of Rs. 20 lakh was made available to
all the District Hospitals in the country to improve their basic services, given the increased
patient load due to JSY and other programs.
Emerging trends In Healthcare:
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Emerging trends In Healthcare Secondary & Tertiary Care requires large investment,
viable bed size, technological obsolescence, Increasing corporatization Venture capital funding
Slow, but emerging private health insurance/TPA Global alliances Listing of companies felt need
for professional management “Sick” hospitals “Marketing” of services M&A, Brand buying,
Brand extension, franchising
Rating of hospitals (CRISIL, ICRA) Accreditation by TPAs Recertification of Doctors
(in future) Spiraling hospitalization costs Epidemiology: 500,000 cancer patients added p.a. 40
million diabetics, 60 million patients, 70-80 million senior citizens, Obesity, psychiatric patients,
IRDA, Private Insurance Tele-medicine
Quality standards:
Medical audit, accreditation & other standards, Waste disposal (State Government) ISO
JCAHO (USA Standard) NABL, Blood Banking (GOI standards), Licensing & inspection (under
consideration), Protocols for clinical trials Consumer protection act (private hospitals )
Tertiary Hospital:
Tertiary Hospital Capital Intensive, Long gestation period, Doctor-oriented, frequent up-
gradation of technology, Service organization, Patient focus, Employee focus, Location is key
Also needs: Teaching (Post-grad.) Research & publication Community/epidemiology work
Global alliances.
Medical Tourism:
Medical Tourism: Emerging opportunity Hospitals Travel agents Airlines Hotels Rs.
1500 Cr. Revenue in 2004 McKinsey projection – Rs. 5000 to 10,000 cr.
Pharmaceutical Industry:
Pharmaceutical Industry: Bulk drugs, drug intermediates, and formulations, generic &
branded, OTC Bio-technology, Bio-informatics, neutraceuticals. Annual turnover – Rs. 23,000
cr. (5-6% growth p.a.) Employment – Direct - 50 lakhs, Indirect - 25 lakhs, 20,000 units (300 in
the organized sector), No. of hospitals – 16,000, Retail chemists – 6 lakhs, 4 th in the world
(volume), 12 th in the world (value). Significant exports from India.
Regulatory bodies in this Industry:
 Government of India
 Directory of Health and Family Welfare
 Indian Council of Medical Research
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 Ministry of Health and Family Welfare
 Central Drug Standard Control Organization
Health Insurance:
Public Sector:
 General insurance of India & 4 subsidiaries
Private Sector:
 Royal Sundaram
 ICICI-Lombard
 Bajaj Alliance etc.
Top leading companies
Private players have made significant investments in setting up of the private hospitals in
cities like Mumbai, New Delhi, Chennai and Hyderabad. There is emergence of latest medical
technology and have created a competitive environment. The government's share in the
healthcare delivery Industry is 20 % while 80 % is in the private sector. The Emergence of
corporate hospitals has led to increased professionalism in medical practices and use of hospital
management tools.
 Apollo Group
 Fortis
 Max
 Work hard
 Piramal
 Duncan
 Ispat
 Escorts
 Ranbaxy Group Company
Employment opportunities:
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Indian Health Care Industry provides employment opportunities to as many as 4
million people in the health care segment or other related sectors catering to the needs of the
medication. India has become one of the favorite for health care treatments which is owing to the
vast differences in medical expenses in western countries. Due to the Indian progressive nature
of the health care sector several foreign companies are intending to even invest in the country.
Health Care jobs are considered to be one among of the most noble career options which is
known to be the single largest profession all around the world.
There are numerous medical complexities and the need for advanced medical care have
necessitated the recruitment of qualified and experienced medical professionals in this field such
as doctors, physicians, medical assistants, radiologists, cardiologists, anesthesiologists, and
surgeons. There are immense opportunities for Doctors, Resident Doctors, Surgeons, Physicians,
and Physical Therapists and Dentists. Vital information on Hospitals are provided by
employment agencies who help people register as healthcare workers, Medical recruiting
agencies, travel & resettlement agencies and local recruiting.
IT Industry In Healthcare:
There are some IT companies actively participate in health care sector like
 TCS
 Wipro
 Infosys
 Cognizant
 I Soft
 Covansys etc.
US Healthcare spend 12% to 15% of GDP (India – about 5-6%) I Soft – Healthcare 260 million,
4000 employees (950 application specialists) cognizant: $600 million of the above, 22% from
healthcare and life sciences 3000 domain & technology experts.
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Table No : 2.2
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SWOT Analysis:
Strengths:
 Good Quality Services are available at a low cost.
 India has a large supply of qualified doctors.
 India has a strong presence in good quality and advanced healthcare.
 There is also have a high success rate in operations.
 Doctor’s reputation on the international front is very high.
 Medical Tourism
Weakness:
 Delivering healthcare in India is costly.
 We have a limited access to life saving medicines.
 A normal middle class family cannot afford the specialty healthcare
Opportunities:
 Healthcare Industry has good support from the government.
 Major Pharmaceutical companies to choose India as the preferred hub for their global
R&D and manufacturing operations.
 The growth of middle class in the country has resulted in fast changing lifestyles in urban
and to some extent rural centers.
 This opens a huge market for lifestyle oriented drugs, which has a very low contribution
in the Indian markets.
Threats:
 Primary Health Infrastructure is the responsibility of the government.

 Cost of discovering new drugs is very high.
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Latest developments
As per the Department of Industrial Policy and Promotion (DIPP), the drugs and
pharmaceuticals sector has attracted FDI worth US$ 1.70 billion between from the year 2000 to
the year 2010, while hospitals and diagnostic centers have received FDI worth US$ 786.14
million in the same period.
 Majorly the Indian Health Care Industry and Fortis Hospitals plans to invest US$ 53.7
million and plans to expand the facilities for the pan-India.
 Columbia Asia Group, which already has six hospitals in the country- Asia's leading
hospital chain, plans to ramp-up its operations in India by opening eight more multi-specialty
community hospitals with a total capacity of 800 beds by the year of mid-2012. The total
investment of US$ 177.1 million for the 14 hospitals.
 In Hyderabad, the Narayana Hrudayalaya has inaugurated the phase-I of the 5,000-bed
health city which is the Hub for the multinational corporations. The company plans to expand its
presence to seven more cities to take the total number of hospitals to 14 in the next 2-3 years.
 Cochlear Ltd plans an Australian medical devices company to set up its wholly-owned
subsidiary in India, to provide better patient and product support. In next five years the Company
also plans to invest about US$ 15 million.
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Mahatma Gandhi Cancer Hospital and Research Institute (MGCH and RI) is a unit of
Visakhapatnam Hospital and Cancer Research Centre Private Limited. It is a uni speciality
hospital which deals only with who is suffering from cancer. It was established in the year 2005.
Vision:
 To become the best hospital for cancer treatment with the latest technology and human
skills.
 To evolve as a unique university-leased health center where the quest for a new
knowledge would continuously yield more effective and more compensative care for all.
 To nurture a new generation of long life committed personnel with dedication,
knowledge, skills, wisdom and values.
 To strive for public trust and maintain medicine’s humane and noble place among
professions.
Mission:
Prevention is an essential part of MGCH and RI’s mission. Through public education,
clinical preventive services and research, it strives to reduce the incidence of cancer and serve
people who may never be the patients.
Curing diseases reduce suffering and achieving an acceptable quality of life with the
help of healthcare professions are the central goals.
Cancer and cancer treatment can impact patient’s physical abilities, posture, balance,
speech and/or bodily and reproductive functions. It can be difficult to adjust to the changes. The
Department of Oncology Rehabilitation aims to help to regain strength, energy and
independence and improve the quality of life. Holistic care programs from diagnosis, through all
treatments to recovery and palliative care.
Basic and clinical research is central to the organization’s mission. They are fundamental
to the prevention, diagnosis, treatment and ultimately to the eradication of cancer. Research
reflects the highest standards of integrity including accurately collected, precisely analyzed and
honestly reported data.
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Objectives of MGCH and RI:
1. To provide health care to the patients.
2. Increase the life span of the patients.
3. To cure cancer diseases in time.
MGCH and RI ORGANOGRAM:
Chart No:1
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IMPORTANT DEPARTMENTS-STRUCTURE AND FUNCTIONS:-
FINANCE DEPARTMENT:
1. Finance Manager is the head of the Finance and Accounts Department.
2. Finance Manager is followed by Assistant Finance Manager.
3. Assistant Finance Manager is followed by Accountants.
4. Accountants are followed by Finance Executives.
5. Finance Executives are followed by Trainee’s.
FUNCTIONS:
1. Preparation of annual budget.
2. Conducting periodic audit.
3. Intelligent investment.
4. Cost calculation and controls.
5. To prepare balance sheets.
6. Preparation of pay roll and salaries section.
7. Recovery of all statutory amounts payment.
8. Settlement to employees.
9. Pay and wage fixation.
HR DEPARTMENT:
1. Head of the Department (HOD) is the head of the Human Resource Department.
2. HOD is followed by Human Resource Manager.
3. Human Resource Manager is followed by Assistant Human Resource Manager.
4. Assistant Human Resource Manager is followed by Human Resource Executive.
5. Human Resource Executive is followed by Human Resource Trainee’s.
FUNCTIONS:
1. Framing Human resource policy, objectives and goals.
2. Selection, recruitment, training and development of man power.
3. Induction and placement of man power.
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4. Maintaining all statutory requirements.
5. Man power planning.
6. Action against misbehavior of workers/employees.
7. Time Office Management.
8. Conducting disciplinary enquiries.
9. Reporting to management.
RADIOTHERAPY DEPARTMENT:
1. HOD, Radiotherapy is the crux for this department.
2. Radiation Oncologist will be supervising the radiologists.
3. Radiologist is followed by Chief Medical Physicist who is in turn followed by Medical
Physicist’s.
4. Radiotherapy Technologists (Cobalt, Linac-1, Linac-2, X-ray, CT-scan).
FUNCTIONS:
1. The X-ray department performs the job of taking X-ray for the patients.
2. CT-Scan department scans the patients for different types of cancer like blood, breast,
gastric throat, cervical etc.
NURSING DEPARTMENT:
1. Nursing Superintendent is the head of the nursing department.
2. Nursing Superintendent is followed by Nursing Supervisor who in turn is followed by
Assistant Nursing Supervisor.
3. Assistant Nursing Supervisor is followed by nursing staff which includes BSC nursing ,
GNM’S, ANM’S and trainee’s
FUNCTIONS:
1. Nursing department’s main function is to take care of the patients like checking for BP
and sugar levels, medicating as per prescription etc.
MAINTENANCE DEPARTMENT:
1. This department consists of electricians, plumbers, security personnel, housekeeping
staff, air conditioning technicians, fire fighting team, gas plant and water treatment plant (WTP)
technicians.
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2. All the staff perform their duties to see that the day to day activities of the hospital are
carried out smoothly without any glitches.
FUNCTIONS:
1. Electricians see that the supply of electricity is continuous, repair electrical equipment
and look after the working of generators.
2. Plumbers look after the supply of water and take up repair works where ever necessary.
3. Security personnel regulate the entry of people in and out of the hospital, monitor CCTV
system and keep an eye on the valuable equipment inside the hospital and its premises.
4. Housekeeping staff is headed by a supervisor who looks after ayah’s and boys. They take
up the job of cleaning the floors, washing the clothes, gardening and try to keep the environment
of the hospital neat and clean.
5. The hospital is equipped with central air conditioning system and the AC technicians see
that it is functioning smoothly.
6. The hospital is equipped with a fire fighting system which can be operated by well
trained fire fighting team during untoward fire accidents.
7. The hospital is also equipped with a gas plant(medical gases) which is maintained by gas
plant technicians.
8. The hospital is also equipped with a Water Treatment Plant (WTP) in co-relations with
Andhra Pradesh Pollution Control Board (APPCB). It is maintained by well trained WTP
technicians.
BILLING DEPARTMENT:
1. This department is divided into two components Corporate and aarogyasri billing.
2. The hierarchy of the staff of both the components is as follows. Assistant Manager is
followed by Senior Supervisor. Senior Supervisor is followed by Senior Executive who is in turn
followed by Executive.
FUNCTIONS:
1. This department’s main function is to calculate how much cost has been incurred on
patient care in the hospital.
FRONT OFFICE DEPARTMENT:
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1. Assistant Manager, Front Office manages this department.
2. Assistant Manager is followed by Senior Executive who is in turn followed by Executive.
3. The Executive is followed by Public Relations Officer who is followed by Receptionists
followed by Telephone Operators and then Trainee’s.
4. The Front Office department also includes the component In-Patient services.
FUNCTIONS:
1. The main function of this department is to take information and details of the patients and
their relatives.
DOCTORS DEPARTMENT:
1. The hospital has a highly qualified, committed and specialist team of doctors. Among
them some are consultants who visit the hospital whenever necessary and others are regular.
FUNCTIONS:
1. Diagnosis through various tests.
2. Prescribing appropriate treatment.
3. Prescribing proper medicines.
4. Daily visits to patients and monitor their progress and if necessary change the course of
treatment.
BUSINESS DEVELOPMENT (BD) DEPARTMENT:
1. BD-Manager is the head of this department.

2. BD-Manager is followed by BD-Assistant Manager who is in turn followed by BD-
Executive.
3. BD-Executive is followed by Trainee’s.
FUNCTIONS:
1. Business Development research.
2. Advertising activity
3. Conducting teleconferences
4. Meet the doctors
5. A deep study and knowledge about sufficient doctors.
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EDP DEPARTMENT:
The hospital is equipped with EDP (Electronic Data Processing) system which is
maintained by EDP department. The EDP system includes LAN (Local Area Network) and
WAN (Wide Area Network) connecting 60 computers within the network. LAN is used for intra
and Inter communication among various departments. WAN is used to access internet through
which government related (Aarogyasri) work is done as well as for accessing hospital website
and other modes of communication like e-mail etc. The EDP maintains the hospital website as
well as HMIS (Hospital Management Information System). HMIS is run on Windows-XP
operating system as front end and develop using Visual Basic as back end tool.
FUNCTIONS:
1. The EDP department maintains the hospital website as well as HMIS (Hospital
Management Information System)
2. The department looks after the maintenance of LAN and WAN, attends to various
software, hardware and internet related problems of various departments as and when they occur
OPERATIONS DEPARTMENT:
Administrative support to the department heads in the operations of their respective
department. 7. Instrument and coordinate the need for process mapping, documentation, Audit,
Training and implementation of various work processes identified as part of the NABH initiative.
Ensure that the departmental safety standards/protocols are strictly adhered to as per
NABH Quality Accreditation guidelines. 9. Any other administrative responsibilities entrusted
by the Management from time to time.
FUNCTIONS:
1. Monitoring all the operational activities of hospital (Housekeeping / Security / Bio
medical / Maintenance / Pantry / Canteen Quality / Billing / Front office /Store & purchase /
Diagnostics /Pharmacy).
2. Set up new standards & policies for smooth functioning of hospital.
3. Revenue analysis and statutory requirements.
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4. Activities, processes and quality related issues aiming towards eventual NABH (National
Accreditation Board Hospital) accreditation for the hospital.
5. Ensure that the departmental safety standards/protocols are strictly adhered to as per
NABH Quality Accreditation guidelines.
6. Manage conflicts and grievances related to operational, billing issues concerning patients
in coordination with department heads and customer care.
7. Instrument and coordinate the need for process mapping, documentation, Audit, Training
and implementation of various work processes identified as part of the NABH initiative.
8. Ensure provision of quality service and compliance with all necessary regulatory and
agency requirements and appropriate certifications and licensures.
9. Any other administrative responsibilities entrusted by the Management from time to time.
MAN POWER PARTICULARS:
MGCR & RI has a reputation for providing quality health care with experienced
workforce spanning over a decade. The workforce is continuously trained to upgrade their
technical skills and experience levels are being backed by relevant academic professionals
available here.
Table No3.1
S.NO DEPARTMENTS/STAFF NO OF
EMPLOYEES
1 HUMAN RESOURCES 3
2 FINANCE AND ACCOUNTS 5
3 BUSINESS DEVELOPMENT 7
4 FRONT OFFICE 15
5 RADIATION THERAPY 17
6 CLINICAL RESEARCH 2
7 MATERIALS AND PURCHASE 2
8 PHARMACY 6
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9 NURSING 67
10 BILLING 14
11 MAINTENANCE 13+3
12 HOUSE KEEPING 58
13 SECURITY 23
14 LAB SERVICES 8
15 STORES 2
16 OPERATION THEATER 5
17 ANAETHESIASTS 4
18 BIO MEDICAL 2
19 DENTAL 1
20 MEDICAL RECORDS 1
21 IP-SERVICES 2
22 DUTY MEDICAL OFFICERS 10
23 OPERTIONS & QUALITY 2
24 CLINICAL PATHOLOGY 1
25 SURGICAL ONCOLOGY 3
26 GYNAC ONCOLOGY 1
27 GENERAL SURGEON’S 2
28 RADIOLOGY 6
The strength of the workforce (figures) mentioned in each department changes as per
the man power requirements of the organization over a period of time.
HUMAN RESOURCE MANAGEMENT IN MGCH&RI:-
Human Resource Management (HRM) is a management function that helps managers

plan, recruit, select, train, develop, remunerate and maintain members for an organization. It
involves the application of management functions, policies and principles. The functions and
principles are applied to develop, maintain and remunerate employees in an organization.
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HRM functions are not confined to business establishments only; they are applicable to
non-business organizations too, such as education, healthcare, recreation and the like.
HRM POLICY:
Policy is a set of proposals and actions that act as a reference point for managers while
dealing with employees. Actual standard of performance can be compared with the policy to
determine the level and nature of implementation of the policy. This required for the creation of
better human resource management policies. Policies help managers for operating at various
levels to act with confidence without the need for consulting the superiors every time. HRM
policy should be clear, positive, and easily understandable, prescribed in limits, fair and
shouldn’t ensure drastic overnight changes.
POLICY OF MGCH & RI

1. Sensitivity to pain and suffering shall be accorded highest priority to every patient.
2. Same treatment for same illness irrespective of ability to pay.
3. Tests will be done only when medically necessary.
4. Selection of all employees shall be on the basis of merit.
5. Compulsory continuous medical education to lab and healthcare personnel.
6. All departments shall be run by full time consultants.
7. Round the clock availability of CT-Scan, Radiology, labs and technicians.
HRM PLANNING:
It is the process by which an organization should move from its current manpower
position to desired manpower position.
HRM PLANNING PRACTICES:

Human Resource Planning is a process of determining and assuring that the organization
will have an adequate number of qualified persons, available at proper time and performing jobs
which would meet the organizational goals. Human Resource Planning is to foresee the human
resource requirements of an organization and the future supply of human resource. With shortage
of certain categories of employees, variety of skills and rapid changes in technology, marketing,
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management etc, the organization needs new categories of employees, skill etc for which Human
Resource planning is important.
JOB DESCRIPTION OF SENIOR HR MANAGER:-
JOB TITLE: Senior HR Manager.
REPORTS TO: General Manager, HR.
PURPOSE: To ensure personnel and human resource functions are to be carried

out to meet organizational objectives.
DUTIES AND RESPONSIBILITIES :-
1. Monitoring all the functions of the department staff.

2. Accept resignations and monitor till the closure of full and final settlement.
3. Handle pay revisions, promotions and transfers periodically.
4. Organize seminars, workshops, conducting internal and external training to staff.
5. Conducting exit interviews at time of separation of associates
6. Preparation of daily reports about resignations, new joining, transfers, leaves etc
7. Take notice of will full damage to work in process or to any property of the
establishment.
8. To monitor and take into consideration of gambling within the premises of the
establishment.
9. To monitor and take into consideration of cases of smoking within the premises of the
establishment where it is prohibited by the management.
Performance Appraisal:
Performance Appraisal is a systematic evaluation of present and potential capabilities of

personnel and employees by their superiors.
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The results of the performance appraisal are normally used to
1. Estimate the overall effectiveness of employees in performing their jobs.

2. Identify strengths and weaknesses in job knowledge and skills.
3. Determine whether a subordinate’s responsibilities can be expanded.
4. Identify future training and development needs.
5. Review progress towards goals and objectives.
6. Motivate and guide growth and development.
CAREER PLANNING POLICY AND PRACTICE IN THE ORGANIZATION
Career Planning:
It is the process of planning one’s career and implementation of career plans by means of
education, training, job search and acquisition of work experience. This hospital is not following
any career planning policy.
Promotions and Transfers- Policy and Practices:
Promotion means rising from down standard to up standard. In this hospital they are
promoting experienced candidates only. There is no policy or plan for promoting employees. The
promotion is based up the employee experience but not on period of time. Transfer means
moving from one place to another place. This hospital is following internal transfer for the
employees. Employees are transferred from one job to another job.
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INTRODUCTION:
HRM DEFINITION:
Edwin Flippo defines- HRM as “planning, organizing, directing, controlling of procurement,
development, compensation, integration , maintenance and separation of human resources to the
end that individual, organizational and social objectives are achieved.”
FUNCTIONS:
MANAGERIAL FUNCTIONS
OPERATIONAL FUNCTIONS
Managerial Functions:
Planning:
Planning is a predetermined course of actions. It is a process of determining the organizational
goals and formulation of policies and programmes for achieving them. Thus planning is future
oriented concerned with clearly charting out the desired direction of business activities in future.
Forecasting is one of the important elements in the planning process. Other functions of
managers depend on planning function.
Organizing:
Organizing is a process by which the structure and allocation of jobs are determined. Thus
organizing involves giving each subordinate a specific task establishing departments, delegating
authority to subordinates, establishing channels of authority and communication, coordinating
the work of subordinates, and so on.
Staffing:
TOs is a process by which managers select, train, promote and retire their subordinates This
involves deciding what type of people should be hired, recruiting prospective employees,
selecting employees, setting performance standard, compensating employees, evaluating
performance, counseling employees, training and developing employees.
Directing/Leading:
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Directing is the process of activating group efforts to achieve the desired goals. It includes
activities like getting subordinates to get the job done, maintaining morale motivating
subordinates etc. for achieving the goals of the organization.
Controlling:
It is the process of setting standards for performance, checking to see how actual performance
compares with these set standards, and taking corrective actions as needed.
Operative Functions:
Procurement:
It involves procuring the right kind of people in appropriate number to be placed in the
organization. It consists of activities such as manpower planning, recruitment, selection
placement and induction or orientation of new employees.
Development:
This function involves activities meant to improve the knowledge, skills aptitudes and values of
employees so as to enable them to perform their jobs in a better manner in future. These
functions may comprise training to employees, executive training to develop managers,
organization development to strike a better fit between organizational climate/culture and
employees.
Compensation:
Compensation function involves determination of wages and salaries matching with contribution
made by employees to organizational goals. In other words, this function ensures equitable and
fair remuneration for employees in the organization. It consists of activities such as job
evaluation, wage and salary administration, bonus, incentives, etc.
HRD DEFINITION:
Human resources development (HRD) refers to the vast field of training and development
provided by organizations to increase the knowledge, skills, education, and abilities of their
employees. In many organizations, the human resources development process begins upon the
hiring of a new employee and continues throughout that employee's tenure with the organization.
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Many employees come into an organization with only a basic level of skills and experience and
must receive training in order to do their jobs effectively. Others may already have the necessary
skills to do the job, but don't have knowledge related to that particular organization. HR
development is designed to give employees the information they need to adapt to that
organization's culture and to do their jobs effectively.
Importance of Human Resource Development:
HRD is a system of introducing changes in the work culture and work environment without
dislocating the functioning of the organization. The following points highlight its importance:
a) Competent Employees: HRD helps in making people aware of the skills required for job
performance. There is greater clarity of work norms and standards. This results in a more
competent work force.
b) Role Clarity: HRD encourages communication between work-teams. People not only
understand their roles better but also become aware of the expectations of the other members of
the team.
c) Committed Work Force: People become more committed to the jobs because rewards are
administered more objectively through the HRD process.
d) Greater Trust and Respect: By encouraging communication, HRD helps in developing

greater trust and respect for each other. Employees become more open and authentic and new
values can be generated easily.
TrainingandDevelopment:
Training and development is aimed at improving or changing the knowledge skills and attitudes
of the employees. While training involves providing the knowledge and skills required for doing
a particular job to the employees, developmental activities focus on preparing the employees for
future job responsibilities by increasing the capabilities of an employee which also helps him
perform his present job in a better way. These activities start when an employee joins an
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organization in the form of orientation and skills training. After the employee becomes
proficient, the HR activities focus on the development of the employee through methods like
coaching and counseling.
Career Development:
It is a continuous process in which an individual progresses through different stages of career

each having a relatively unique set of issues and tasks. Career development comprises of two
distinct processes. Career Planning and career management. Whereas career planning involves
activities to be performed by the employee, often with the help of counselor and others, to assess
his capabilities and skills in order to frame realistic career plan. Career management involves the
necessary steps that need to be taken to achieve that plan. Career management generally focus
more on the steps that an organization that can take to foster the career development of the
employees.
Succession Planning:
Succession Planning is the process of identifying and tracking high-potential employees who will
be able to fill top management positions when they become vacant.
it is an ongoing process that identifies necessary competencies, then works to
assess, develop, and retain a talent pool of employees, in order to ensure a continuity of
leadership for all critical positions. Succession planning is a specific strategy, which spells out
the particular steps to be followed to achieve the mission, goals, and initiatives identified in
workforce planning. It is a plan that managers can follow, implement, and customize to meet the
needs of their organization, division, and/or department.
Performance Appraisal:
Once the employee has been selected, trained and motivated, she/he is then appraised for
her/his performance. Performance Appraisal is the step where the Management finds out how
effective it has been at hiring and placing employees. If any problems are identified, steps are
taken to communicate with the employee and remedy them.
“Performance Appraisal is a process of evaluating an employee’s performance in terms of
its requirements”.
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Performance Appraisal can also be defined as “the process of evaluating the performance
and qualifications of the employees in terms of the requirements of the job for which he is
employed, for purposes of administration including placement, selection for promotions,
providing financial rewards and other actions which require differential treatment among the
members of a group as distinguished from actions affecting all members equally”.
Importance and Purpose:
Performance Appraisal has been considered as the most significant an indispensable tool
for an organization, the information it provides is highly useful in making decisions regarding
various personnel aspects such as promotion and merit increases. Performance measures also
link information gathering and decision making processes which provide a basis for judging the
effectiveness of personnel sub-divisions such as recruiting, selection, training and compensation.
Accurate information plays a vital role in the organization as a whole. They help in finding out
the weaknesses in the primary areas.
CONCEPT OF PERFORMANCE APPRAISAL:
Performance evaluation or performance appraisal is the process of assessing performance
and progress of employee or of a group of employee on a given job and his potential for future
development. In concept of all, formal procedures are used by the working organization to
evaluate personality, contribution and potential of employees.
The main characteristics of performance appraisal is as follows:
1. Performance appraisal is the process consisting of series of steps.
2. It is the systematic examination of employee’s strength and weakness in terms of jobs.
3. Performance appraisal is the scientific or objective study. Formal procedure is used in the
study and the same approach is adopted for all job holders for that result is comparable.
4. It is an organizing on continuous process where in the valuation is arranged periodically
according to a definite plan.
5. Main process of performance appraisal is to secure information necessary for making
objective and correct decision on employee.
Characteristics of Performance Appraisal:
 A data generation system: It helps in generating total personal and professional profile of
all employees. It provides a picture of the number and quality of work force of an
organization.
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 A tool for strategy formulation and implementation: The data generated by performance
appraisal acts as an input to strategy formulation and implementation initiatives of the
organization.
 An integration device for HR system: Performance appraisal plays a central role in HR
system architecture. It helps in identifying the appropriate skills, competencies and
behaviors required for successful implementation of organizational strategy.
 A legally defensible document: Performance appraisal provides a documented evidence
of level of performance of employees.
 A motivational tool: Employees with marginal performances are motivated and supported
to improve the performance. Good performance employees are rewarded and recognized
for their accomplishment.
Objectives of Performance appraisal:

 To review the performance of the employees over a given period of time.
 To judge the gap between the actual and the desired performance.
 To help the management in exercising organizational control.
 Helps to strengthen the relationship and communication between superior – subordinates

and management – employees.
 To diagnose the strengths and weaknesses of the individuals so as to identify the training
and development needs of the future.
 To provide feedback to the employees regarding their past performance.
 Provide information to assist in the other personal decisions in the organization.
 Provide clarity of the expectations and responsibilities of the functions to be performed

by the employees.
 To judge the effectiveness of the other human resource functions of the organization such
as recruitment, selection, training and development.
 To reduce the grievances of the employees.
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Essential Characteristics of an Effective Appraisal System:
Performance appraisal system should be effective as a number of crucial decisions
are made on the basis of score or rating given by the appraiser, which in turn, is heavily based on
the appraisal system. Appraisal system, to be effective, should possess the following essential
characteristics:
 Reliability and validity
Appraisal system should provide consistent, reliable and valid information and data,
which can be used to defend the organization – even in legal challenges. If two appraisers are
equally qualified and competent to appraise an employee with the help of same appraisal
technique, their ratings should agree with each other. Then the technique satisfies the conditions
of inter-rater reliability. Appraisals must also satisfy the condition of validity by measuring what
they are supposed to measure. For example, if appraisal is made for potential of an employee for
promotion, it should supply the information and data relating to potentialities of the employee to
take up higher responsibilities and carry on activities at higher level.
 Job relatedness
The appraisal technique should measure the performance and provide information in job
related activities/areas.
 Standardization
Appraisal forms, procedures, administration of techniques, ratings, etc., should be

standardized as appraisal decisions affect all employees of the group.
 Practical viability
The techniques should be practically viable to administer, possible to implement and

economical to undertake continuously.
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 Legal sanction
Appraisals must meet the laws of the land. They must comply with provisions of various
acts relating to labor.
 Training to appraisers
Because appraisal is important and sometimes difficult, it would be useful to provide

training to appraisers viz., some insights and ideas on rating, documenting appraisals and
conducting appraisal interviews. Familiarity with rating errors can improve rater’s performance
and this may inject the needed confidence in appraisers to look into performance ratings more
objectively.
 Open communication
Most employees want to know how well they are performing the job. A good appraisal
system provides the needed feedback on a continuing basis. The appraisal interviews should
permit both parties to learn about the gaps and prepare themselves for future. To this end,
managers should clearly explain their performance expectations to their subordinates in advance
of the appraisals period. Once this is known, it becomes easy for employees to learn about the
yardsticks and, if possible, try to improve their performance in future.
Managerial Ethics in Performance Appraisal:

Every manager should be concerned with ethics as he may encounter several problems in
appraising performance of subordinates.
What manager should do?
 Appraise on the basis of representatives, sufficient and relevant information.
 Be honest in assessing all the facts he has obtained.
 Pass on appraisal information only to those who have a good reason to need it.
 Make it crystal clear that this is only your personal opinion of the facts that can be
discernible, and as you perceive them.
What manager should not do?
 Appraise without knowing why the appraisal is needed.
 Write one thing and say the subordinates other.
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 Accept another man's appraisal without knowing has basis on which it was made.
 Be biased in statements, presentation of information.
Key Elements of Performance Appraisal System:

Key elements of performance appraisal system are:
 Human Performance
 Employee Feedback
 Performance Measures
 Human Resources Decisions
 Employee Record
Figure No:4.1
PROCESS OF PERFORMANCE APPRAISAL
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1) ESTABLISHING PERFORMANCE STANDARDS:
The first step in the process of performance appraisal is the setting up of the standards
which will be used to as the base to compare the actual performance of the employees. This step
requires setting the criteria to judge the performance of the employees as successful or
unsuccessful and the degrees of their contribution to the organizational goals and objectives. The
standards set should be clear, easily understandable and in measurable terms. In case the
performance of the employee cannot be measured, great care should be taken to describe the
standards.
2) COMMUNICATING THE STANDARDS:
Once set, it is the responsibility of the management to communicate the standards to all
the employees of the organization.
The employees should be informed and the standards should be clearly explained to them. This
will help them to understand their roles and to know what exactly is expected from them. The
standards should also be communicated to the appraisers or the evaluators and if required, the
standards can also be modified at this stage itself according to the relevant feedback from the
employees or the evaluators.
3) MEASURING THE ACTUAL PERFORMANCE:
The most difficult part of the Performance appraisal process is measuring the actual
performance of the employees that is the work done by the employees during the specified
period of time. It is a continuous process which involves monitoring the performance throughout
the year. This stage requires the careful selection of the appropriate techniques of measurement,
taking care that personal bias does not affect the outcome of the process and providing assistance
rather than interfering in an employees work.
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4) COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE:
The actual performance is compared with the desired or the standard performance. The
comparison tells the deviations in the performance of the employees from the standards set. The
result can show the actual performance being more than the desired performance or, the actual
performance being less than the desired performance depicting a negative deviation in the
organizational performance. It includes recalling, evaluating and analysis of data related to the
employees’ performance.
5) DISCUSSING RESULTS:
The result of the appraisal is communicated and discussed with the employees on one-to-
one basis. The focus of this discussion is on communication and listening. The results, the
problems and the possible solutions are discussed with the aim of problem solving and reaching
consensus. The feedback should be given with a positive attitude as this can have an effect on the
employees’ future performance. The purpose of the meeting should be to solve the problems
faced and motivate the employees to perform better.
6) DECISION MAKING:
The last step of the process is to take decisions which can be taken either to improve the
performance of the employees, take the required corrective actions, or the related HR decisions
like rewards, promotions, demotions, transfers etc.
Methods of performance appraisal system:
Traditional Methods:
There are various methods used in performance appraisal. The most widely used methods may
be classified in to two categories namely traditional methods and modern methods. Traditional
38
methods lay down more emphasis on the rating of individuals traits, while modern methods are
concern with the evaluation of work-results. The traditional methods are as follows.
1. GRAPHIC RATING SCALES:
39
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 qualities like analytical ability, creative
ability, initiative, leadership qualities, emotional stability, etc. 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 scale. In
continuous method, each degree is assigned points in the order like 0, 1, 2, 3, 4 and 5. In case of
discontinuous rating scale, the appraiser assigns the points to each degree. Performance regarding each
character is known by the points given by the rater. 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 scale 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 drawback to
these scales is their subjectivity and low reliability.
2. STRAIGHT RANKING METHOD:
This is one of the oldest and simplest techniques of performance appraisal. In this method, the
appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It
is quite useful for a comparative evaluation.
3. PAIRED COMPARISON:
40
A better technique of comparison than the straight ranking method, this method
compares each employee with all others in the group, one at a time. After all the comparisons on
the basis of the overall comparisons, the employees are given the final rankings.
4. CRITICAL INCIDENTS METHODS:
In this method of Performance appraisal, the evaluator rates the employee on the basis
of critical events and how the employee behaved during those incidents. It includes both negative
and positive points. The drawback of this method is that the supervisor has to note down the
critical incidents and the employee behavior as and when they occur.
5. GRAPHIC RATING SCALE:
In this method, an employee’s quality and quantity of work is assessed in a graphic scale
indicating different degrees of a particular trait. The factors taken into consideration include both
the personal characteristics and characteristics related to the on the job performance of the
employees. For example a trait like Job Knowledge may be judged on the range of average,
above average, outstanding or unsatisfactory.
6. FORCED DISTRIBUTION:
To eliminate the element of bias from the rater’s ratings, the evaluator is asked to
distribute the employees in some fixed categories of ratings like on a normal distribution
curve. The rater chooses the appropriate fit for the categories on his own discretion.
Table No:4.1
41
TRENDS IN PERFORMANCE APPRAISAL
Item Former Emphasis Present Focus

Terminology Merit-rating Performance appraisal
Purpose Determine wage increase, Development of the individual,
Promotion, transfer, lay off. improved job performance.
Application For rank and file workers For managerial and technical
personnel.
Factors rated Personal traits Performance, result or
accomplishments.
Techniques Rating scales with emphasis Mutual goal-setting, critical
upon scores incidents, group appraisal.
MODERN METHODS:
1) ASSESSMENT CENTERS:
An assessment centre typically involves the use of methods like social/informal events,
tests and exercises, assignments being given to a group of employees to assess their
competencies to take higher responsibilities in the future. Generally, employees are given an
assignment similar to the job they would be expected to perform if promoted. The trained
evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated
on job related characteristics.
The major competencies that are judged in assessment centers are interpersonal skills,
intellectual capability, planning and organizing capabilities, motivation; career orientation etc.
assessment centers are also an effective way to determine the training and development.
2) BEHAVIORALLY ANCHORED RATING SCALES:
Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which

combines the Graphic Rating Scale and critical incidents method. It consists of predetermined
42
critical areas of job performance or sets of behavioral statements describing important job
performance qualities as good or bad (for e.g. the qualities like inter personal relationships,
adaptability and reliability, job knowledge etc). These statements are developed from critical
incidents.
In this method, an employee’s actual job behavior is judged against the desired behavior
by recording and comparing the behavior with BARS. Developing and practicing BARS requires
expert knowledge.
3) 360 DEGREE METHOD:
360 Degree Feedback, also known as 'multi-rater feedback', is the most

comprehensive appraisal where the feedback about the employees’ performance comes from all
the sources that come in contact with the employee on his job.
360 degree respondents for an employee can be his/her peers, managers (i.e. superior),
subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact
with the employee and can provide valuable insights and information or feedback regarding the
"on-the-job" performance of the employee.
360 degree appraisal has four integral components:
1. Self appraisal
2. Superior’s appraisal
3. Subordinate’s appraisal
4. Peer appraisal.
Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his
achievements, and judge his own performance. Superior’s appraisal forms the traditional part of
the 360 degree performance appraisal where the employees’ responsibilities and actual
performance is rated by the superior.
Subordinates appraisal gives a chance to judge the employee on the parameters like
communication and motivating abilities, superior’s ability to delegate the work, leadership
qualities etc. Also known as internal customers, the correct feedback given by peers can help to
find employees’ abilities to work in a team, co-operation and sensitivity towards others.
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Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree
Performance appraisal have high employee involvement and also have the strongest impact on
behavior and performance. It provides a "360-degree review" of the employees’ performance and
is considered to be one of the most credible performance appraisal methods.
360 Degree Performance Appraisal is also a powerful developmental tool because when
conducted at regular intervals (say yearly) it helps to keep a track of the changes others’
perceptions about the employees. A 360 degree appraisal is generally found more suitable for the
managers as it helps to assess their leadership and managing styles. This technique is being
effectively used across the globe for performance appraisals. Some of the organizations
following it are Wipro, Infosys, and Reliance Industries etc.
4) MANAGEMENT BY OBJECTIVES:
The concept of ‘Management by Objectives’ (MBO) was first given by Peter Drucker
in 1954. It can be defined as a process whereby the employees and the superiors come together to
identify common goals, the employees set their goals to be achieved, the standards to be taken as
the criteria for measurement of their performance and contribution and deciding the course of
action to be followed.
The essence of MBO is participative goal setting, choosing course of actions and
decision making. An important part of the MBO is the measurement and the comparison of the
employee’s actual performance with the standards set. Ideally, when employees themselves have
been involved with the goal setting and the choosing the course of action to be followed by them,
they are more likely to fulfill their responsibilities.
Process of MBO:
1. Setting organizational objectives:-
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The first step in MBO is setting organizational goals which must be expressed
clearly and consciously and can be measured accurately. Goals have to be periodically revised.
Goals should be simple as well as challenging high enough to provide motivation.
2. Joint goal setting:-
The goals must be set jointly between the management and the subordinates in a
conference. The goals must be flexible to accommodate the new ideas and they should stress
individual’s responsibility. The goals should be specific, precise, understandable, and clear and
should be quantified for easier measurement. Mutual discussion is most required.
3. Performance review:-
To take a review of the performance, manager should call frequent meetings

with his subordinates. This review may be monthly, quarterly, half-yearly or yearly.
4.Set check posts:-
The manager must or establish major check posts of measure progress. Check posts mean
checking after some intervals so that subordinates may be directed, controlled and commented as
and when required.
5. Feed Back:-
Any programmer if it is to be made successful, it should be timely, promptly, and

accurate feedback. The employees who receive frequent feedback concerning their performances
are more highly motivated than those who don’t have feedback. Feedback should be specific,
relevant and timely as it helps to satisfy the need of people about knowing where they stand. The
active support of chief executive who gives direction to the organization is essential for the
success of MBO.
PROBLEMS IN APPRAISALS:
1) The Hallow effect or error:-
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Many supervisors tend to give an employee approximately the same rating on all factors.
The hallow effect refers to the tendency of rating an individual consistency high or low or
average on the various traits, depending upon whether the overall impression of the individual is
favorable or not. A high rating may be given to a favored employee where as a low rating may be
given to an unfriendly employee.
2) Central Tendency:-
This error is evidenced when a rater marks all or almost all personnel as an average. This
error occurs when the later has inadequate information about the rater or giving less attention and
the effort to the rating process. For these reasons, generally the raters are reluctant to rate people
at the extreme and ends of the scale. Sometimes, it so happens that raters don’t have much time
to devote and unfamiliar with some of the subordinates, he may play safe by neither condemning
nor praising.
3) Unreliable Judgment:-
Unreliable judgment is because of subjectivity on the part of the appraiser, despite

efforts to minimize it.
4) Poorly Designed:-
Poorly designed appraisal forms compounded by some irrelevant items.
5) Lack of Training:-
In sufficient time is devoted to preparing for the event, completing the appraisal forms
and ensuring the necessary training is undertaken.
6) Union or Strictness errors:-
Some supervisors have a tendency to be easy rater and others have to be harsh in their
ratings. Lenient or easy raters assign consistently high values or scores to their subordinates and
46
strict or harsh rate may give consistently low ratings. The former tendency is known as positive
tendency while second tendency is known as negative. Both the trends may arrases from varying
standards of performance observed by supervisor and from different interpretations of what they
evaluate in employee performance. This tendency may be avoided by holding meetings or
conducting rates training programmer so that they may know what is required of them.
Performance Appraisal at MGCH&IR:

Objective:
The objective of performance appraisal system in this organization is, organization should know
the capabilities of their employees throughout the year and also it helps to the employees to
identify their strengths and weaknesses, so that they can improve their performance and motivate
their employees by giving rewards and responsibilities.
They conduct this appraisal process by fixing some predesigned standards like ;
Communication
Knowledge
Skill
Responsibilities
Dependability
Inter relationships with superior and subordinate
Helping to the other employees
Team work
The above mentioned standards will be communicated to the employees at the beginning of the
year, so that each and every employee will focus on these standards. These standards will be
revised from time to time.
 MGCH is using 360 degree performance appraisal system.

 Each and every employee's performance will be appraised by their superior, subordinate,
peers, colic's.
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 For example, in the department of operations ,the senior executive 's performance will be
appraised by his/her sub-ordinate ,colic's, peers, employees of other departments
,superior.
 The head of operations will revise this performance appraisal process based on
organizational and individuals performance.
 The employees also appraised themselves through form provided by hr department.
 It has to be completed within 15 days by all respective appraisers.
 The employees will be awarded by scores from 0-10.
After completion of the appraisal process, the HOD of the concerned departments will
discuss with their employees about their performance and they will give feedback.
 If the employee score’s 10/10, he /she will recommended for promotion if the vacancies
are there or giving hike in their salary.
 If the employee score’s above 5 and below 10 he/she will be praised in a staff meeting.
 If any employee falls above 1 and below 5 she/he will be giving training.
 If any employee falls below 0, he/she will be counseled.
1) Awareness on present performance appraisal system .
Table No: 1
48
SNO Opinions No of respondents % of respondents
1 Yes 68 85
2 No 0 0
3 To some extent 12 15
Total 80 100
Graph No:1
Awareness On Performance Appraisal
90%
80%
70%
%Of respondents
60%
50%
40% 85%
30%
20%
10% 15%
0%
0%
YES NO TO SOME EXTENT
Opinions
Interpretation:
From the above diagram, it can be interpreted that 85% of the respondents are aware about the
present performance appraisal system in the organization , 15% respondents are aware to some
extent , and none of the respondents are not aware about performance appraisal system.
2) Performance appraisal leads towards interpersonal conflicts among the co-

workers.
Table No :2

1 Yes 33 41
49
2 No 21 26
Total 80 100
Graph No: 2
P.A Leads Towards Interpersonal Conflicts

45%
40%
35%
30%
%ofrespondents
25%
20% 41%
15% 33%
26%
10%
5%
0%
Opinions
Interpretation:
From the above diagram, it can be interpreted that 41% of the respondents says that performance
appraisal leads to inter personal conflicts among co-workers , 26% respondents says doesn't leads
, and 33% respondents says to some extent .
3) Top level management support this system.
Table No : 3

1 Yes 65 81
2 No 0 0
50
Total 80 100
Graph No:3
Support From Top Level Management

90%
80%
81%
70%
60%
% of respondents
50%
40%
30%
20%
19%
10%
0%
0%
opinions
Interpretation:
From the above diagram, it can be interpreted that 81% of the respondents says that their top
level management support this system , none of the respondents says no , and 19% respondents
says to some extent .
4) Monetary & non-monetary benefits given for outstanding performance.
Table No :4

1 Yes 49 61
51
2 No 19 24
Total 80 100
Graph No: 4
Benefits Given For Out Standing Performance

70%
60%
50%
%of respondents
40%
30% 61%
20%
10% 24%
15%
0%
opinions
INTERPRETATION:
From the above diagram, it can be interpreted that 61% of the respondents says that there are
monetary and non monetary benefits for their outstanding performance , 24% respondents says
that there are no benefits for their outstanding performance , and 15% respondents says to some
extent .
5) Performance appraisal helps for employee overall development.
Table No : 5

1 Yes 52 65
52
2 No 10 13
Total 80 100
Graph No :5
Performance Appraisal Helps For Employee Overall Development
70%
60%
50%
% of respondents
40%
65%
30%
20%
10% 23%
13%
0%
Opinions
INTERPRETATION:
From the above diagram, it can be interpreted that 65% of the respondents feels that
performance appraisal helps in overall development , 13% respondents feels no , and 23%
respondents to some extent .
6) Performance appraisal techniques properly implemented in the organization.
Table No : 6
1 Yes 60 75
2 No 10 13
53
Total 80 100
Graph No : 6
Proper Implementation Of Performance Appraisal Techniques
80%
70%
60%
% of respondents
50%
40% 75%
30%
20%
10%
13% 13%
0%
opinions
INTERPRETATION:
From the above diagram, it can be interpreted that 75% of the respondents feels that
performance appraisal techniques are properly implemented , 13% respondents feels NO, and
13% respondents feels to some extent .
7) Opinion on feedback and counseling are important.
Table No : 7

1 Strong agree 40 50
2 Agree 27 34
3 Neutral 13 16
4 Disagree 0 0
54
5 Strong disagree 0 0
Total 80 100
Graph No : 7
Opinion On Feedback And Counselling
60%
50%
% of respondents
40%
30%
50%
20% 34%
10% 16% 0% 0%
0%
strong agree agree neutral disagree strong
disagree
opinions
INTERPRETATION:
From the above diagram, it can be interpreted that 50% of the respondents were strongly agree
that feedback and counseling are important , 34% respondents were agree , and 16%
respondents are neutral with the statement.
8) Rewards or incentives should be linked with performance of employee.
Table No : 8
2 Agree 31 39
3 Neutral 12 16
4 Disagree 13 16
Total 80 100
55
Graph No : 8
Rewards Or Incentives Related To Employee Performance
45%
40%
35%
% of respondents
30%
25%
20% 39%
15%
25%
10%
16% 16%
5%
5%
0%
strong agree agree neutral disagree strong disagree
opinions
INTERPRETATION:
that the rewards or incentives should be linked with Performance of employee,39% respondents
were agree, 16% respondents are neutral, 16% respondents were disagree, and 5% respondents
are strongly disagree.
9) Opinion on transparency.
Table No : 9

2 Agree 32 40
3 Neutral 15 19
4 Disagree 7 9
Total 80 100
Graph No : 9
56
Opinion On Transparency
45%
40%
35%
30%
% of respondents
25%
20% 40%
15% 33%
10% 19%
5% 9%
0%
0%
opinions
INTERPRETATION:
From the above diagram, it can be interpreted that 33% of the respondents were strongly
agree,40% respondents were agree, 19% respondents are neutral, 9% respondents were disagree,
none of the respondents are strongly disagree.
10)Performance appraisal method using in the organization.
Table No :10

1 MBO 0 0
2 Ranking 14 18
3 Superiors appraisal 1 1
4 360 degree appraisal 62 78
5 Rating 3 4
Total 80 100
Graph No : 10
57
Method Of Performance Appraisal
90%
80%
70%
60%
% of respondents
50%
40% 78%
30%
20%
10% 18%
0% 4%
0% 1%
MBO Ranking superiors 360 degree rating
appraisal appraisal
opinions
INTERPRETATION:
From the above diagram, it can be interpreted that 18% of the respondents says ranking ,1%
respondents says superiors appraisal, 78% respondents says 360 degree appraisal, 4%
respondents says rating.
11) Results of the performance appraisal discussed with employee.
Table No :11

2 Agree 19 24
3 Neutral 13 16
4 Disagree 0 0
Total 80 100
Graph No : 11
58
Discussion Of Results With Employee
70%
60%
50%
% of respondents
40%
30% 60%
20%
10% 24%
16%
0% 0%
0%
opinions
INTERPRETATION:
agree,24% respondents were agree, 16% respondents are neutral, none of the respondent were
disagree, none of the respondent are strongly disagree.
12) Satisfaction on present performance appraisal system.
Table No :12

1 Highly satisfied 38 48
2 Satisfied 29 36
3 Not satisfied 13 16
Total 80 100
Graph No : 12
59
Satisfaction On Present Performance Appraisal
50%
45%
40%
35%
% of respondents
30%
25% 48%
20%
36%
15%
10%
16%
5%
0%
strong satisfied satisfied not satisfied
opinions
INTERPRETATION:
satisfied, 36% respondents were satisfied, 16% respondents are not satisfied.
13) Performance appraisal is based on the given standards.
Table No :13
2 Agree 29 36
3 Neutral 11 14
4 Disagree 6 8
Total 80 100
Graph No : 13
60
Performance Appraisal Based On Given Standards
45%
40%
35%
% of respondents
30%
25%
20% 43%
36%
15%
10%
14%
5% 8% 0%
0%
opinions
INTERPRETATION:
that the Performance Appraisal in the organization is based on the given standards, 36%
respondents were agree, 14% respondents are neutral, 8% respondents were disagree, none of the
respondents are strongly disagree.
14) Opinion on present performance appraisal system helps in assessing competency.
Table No :14
2 Agree 22 28
3 Neutral 20 25
4 Disagree 10 13
Total 80 100
Graph No. : 14
61
Opinion On P.A.S Helps In Assessing Competency
40%
35%
30%
% of respondents
25%
20%
35%
15% 28% 25%
10%
5% 13%
0%
0%
strong agree agree neutral disagree strong
disagree
opinions
INTERPRETATION:
that the present performance appraisal system helps in assessing competency whereas, 28%
respondents were agree, 25% respondents are neutral, 13% respondents were disagree, and none
of the respondents are strongly disagree.
15) The of performance evaluation plays an important role in training.
Table No. :15

1 Never 6 8
2 Sometimes 36 45
3 Often 27 34
4 Mostly 3 4
5 Always 8 10
Total 80 100
Graph No : 15
62
Performance Evaluation Plays an important role in Training
50%
45%
40%
35%
% of respondents
30%
25%
45%
20%
34%
15%
10%
5% 8% 10%
0% 4%
Never Sometimes Often Mostly Always
opinions
INTERPRETATION:
From the above diagram, it can be interpreted that 8% of the respondents says never, 45%
respondents says sometimes, 34% respondents says often, 4% respondents mostly, 10%
respondents are always.
16) Performance appraisal system helps in setting up goals with those of the organization.
Table No :16

1 Strong agree 0 0
2 Agree 57 71
3 No opinion 23 29
4 Disagree 0 0
Total 80 100
Graph No : 16
63
Performance Appraisal Helps In Setting Up Goals
80%
70%
60%
% of respondents
50%
40%
71%
30%
20%
29%
10%
0% 0% 0%
0%
strong agree agree No opinion disagree strong disagree
opinions
INTERPRETATIONS:
From the above diagram, it can interpreted that none of the respondents were strongly agree,71%
of the respondents were agree, 29% respondents are neutral, none of the respondents were
disagree, none of the respondents are strongly disagree with the statement.
17) Performance Appraisal identifies the strengths and weakness of the employees.
Table No :17

2 Agree 46 58
3 No opinion 13 16
4 Disagree 0 0
Total 80 100
Graph No : 17
64
Identification Of Strenghts And Weakness
70%
60%
50%
% of respondents
40%
30% 58%
20%
26%
10% 16%
0% 0%
0%
strong agree agree No opinion disagree strong
disagree
opinions
INTERPRETATION:
that Performance appraisal system helps in identifying the strengths and weakness whereas ,58%
respondents were agree, 16% respondents are neutral, none of the respondents were disagree,
none of the respondents are strongly disagree.
18) Better performer will get:
Table No :18

1 Promotion 6 8
2 Increment in salary 16 20
3 Responsibilities 50 63
4 Recognition 8 10
5 Rewards 0 0
Total 80 100
Graph No : 18
65
Better Performer
70%
60%
50%
% of respondents
40%
30% 63%
20%
10% 20%
8% 10% 0%
0%
promotion increment in responsibilites recognition rewards
salary
opinions
INTERPRETATION:
From the above diagram, it can be interpreted that 8% of the respondents says promotion,20%
respondents says increment in salary, 63% respondents says responsibilities, 10% respondents
says recognition , none of the respondents says rewards.
19) Performance of the employee is not up to the given standards he/ she will get:
Table No :19
1 Training 62 78
2 Counseling 18 23
3 Termination 0 0
Total 80 100
Graph No : 19
66
Performance Of Employee Notup To The Standard
90%
80%
70%
% of respondents
60%
50%
40% 78%
30%
20%
10% 23%
0%
0%
training counselling termination
opinions
INTERPRETATION:
From the above diagram, it can be interpreted that 78% of the respondents says that training will
be given if the performance of the employee is not up to the mark with the given standards, 23%
of the respondents says counseling and there is no termination policy even though the
performance is not up to the mark.
FINDINGS:
The following are the findings of the present study of “PERFORMANCE APPRAISAL
SYSTEM” in MGCH & RI, VISAKAPATNAM.
1. All most all employees aware with present performance appraisal system in the
organization i.e. 85%.
2. It was found that 41% of respondents expressed appraisal leads towards inter personal
conflicts.
67
3. Some of the respondents i.e. 63% agreed that Performance Appraisal system helps in
assessing competency.
4. Majority of the respondents i.e.61% expressed that Monetary and Non-Monetary benefits
given for outstanding performance.
5. It was found that 73% of respondents agreed that organization doing performance
appraisal process will be done transparently.
6. It was found that 50% of the respondents agreed that the performance feedback and
counseling are important.
7. It was found that organization following the practices that the results superior discussing
with the employee this was expressed by 84% of the respondents.
8. In this study it was found that 64% of respondents agreed that rewards or incentives
should be linked with performance of the employee.
9. It was found that 84% of respondents highly satisfied with the present performance
appraisal system in the organization.
10. It was found that sometimes the performance evaluation will be used for identification of
training this was said by 49% of the respondents.
SUGGESTIONS:
It would be better if MGCH adopts the following points in order to make the performance
appraisal more effective.
1. It can be suggested that organization appreciate the good performer and give proper
guidance so that they may perform more than what the organization expect.
2. If appraisal linked to promotions and increments will motivate the employee towards
work culture.
68
3. It can be suggested that if organization creates awareness on the performance appraisal
and the benefits of performance appraisal system all the employees may effectively engage the
work.
4. It is suggested to involve the employee in setting work targets.
5. The organization designs the appraisal system in such a way that facilitates career growth
and learning of employees.
6. It can also be suggested that instead of filling the performance appraisal forms through
online they can save the time and all the departments may have an idea on the performance of
each and every employee in the organization.
7. Every employee can be provided an opportunity to express their view on performance
appraisal system.
8. It can be suggested that the present performance appraisal system can be used for
assessing the competencies of the employee, the same can be communicate to all the employees.
SUMMARY
Performance appraisal is an essential management technique, which seeks to increase an

employee’s performance in order to get more productivity through goal setting and also provide
a rational basis of various managerial decisions pertaining to human resources of the
organization.
Performance Appraisal forms an integral part of any system, but the approach varies from
company to company. Mahatma Gandhi Cancer Hospital and Research Institute is one of the best
cancer hospitals in Andhra Pradesh. The hospital provides treatment for blood, cervical, breast,
69
gastric and throat cancers. Hospital staff maintains greater attention and sound relationship with
patients and their relatives. They give excellent support to them. Nursing staff threat the patients
as friends.
The hospital has research institute in which research about cancer causes and how to cure
it is the main task.
The hospital evolved its own mission statement ‘to provide quality medical care at
affordable price, delivered with compassion, concern and care through team spirit and
development.
Coming to the role of HR department, the HR Manager performs his functions in

coordination with his superior Head HR and subordinates Assistant HR’s, HR Executives and
Trainee’s. He supervises training and development programs. He works with all the departments
and see that the organizational goals are achieved with utmost job satisfaction of all the
employees.
In simple terms the performance appraisal may be understood as the assessment of an

individual performance in systematic way the performance being measured against such factors
as job knowledge, quality and quantity of output, initiative leadership abilities, supervision,
cooperation, judgment and versatility.
70

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People differ in their abilities and their aptitudes.

There is always some difference

NEED FOR THE STUDY:

Performance appraisal is the process of obtaining, analyzing and recording information

The present study is based on the following objectives.

 To examine the effectiveness of performance appraisal in the organization.

 To know whether the performance appraisal system of organization increase the

 To suggest the necessary measures to improve the quality of performance appraisal

PRIMARY DATA SECONDARY DATA

 The period of study is only 60 days, which is a major constraint.

Size of the industry:

There would be increase in number of public and

Total contribution to the economy/ sales

Emerging trends In Healthcare:

Top leading companies

 Primary Health Infrastructure is the responsibility of the government.

MGCH and RI ORGANOGRAM:

BUSINESS DEVELOPMENT (BD) DEPARTMENT:

1. BD-Manager is the head of this department.

MAN POWER PARTICULARS:

HUMAN RESOURCE MANAGEMENT IN MGCH&RI:-

Human Resource Management (HRM) is a management function that helps managers

POLICY OF MGCH & RI

HRM PLANNING PRACTICES:

JOB DESCRIPTION OF SENIOR HR MANAGER:-

JOB TITLE: Senior HR Manager.

REPORTS TO: General Manager, HR.

PURPOSE: To ensure personnel and human resource functions are to be carried

DUTIES AND RESPONSIBILITIES :-

1. Monitoring all the functions of the department staff.

Performance Appraisal is a systematic evaluation of present and potential capabilities of

1. Estimate the overall effectiveness of employees in performing their jobs.

CAREER PLANNING POLICY AND PRACTICE IN THE ORGANIZATION

Promotions and Transfers- Policy and Practices:

Importance of Human Resource Development:

d) Greater Trust and Respect: By encouraging communication, HRD helps in developing

It is a continuous process in which an individual progresses through different stages of career

Objectives of Performance appraisal:

 To help the management in exercising organizational control.

 Helps to strengthen the relationship and communication between superior – subordinates

 To provide feedback to the employees regarding their past performance.

 Provide information to assist in the other personal decisions in the organization.

 Provide clarity of the expectations and responsibilities of the functions to be performed

 To reduce the grievances of the employees.

Appraisal forms, procedures, administration of techniques, ratings, etc., should be

The techniques should be practically viable to administer, possible to implement and

Because appraisal is important and sometimes difficult, it would be useful to provide

Managerial Ethics in Performance Appraisal:

Key Elements of Performance Appraisal System:

Methods of performance appraisal system:

1. GRAPHIC RATING SCALES:

2. STRAIGHT RANKING METHOD:

4. CRITICAL INCIDENTS METHODS:

5. GRAPHIC RATING SCALE:

Item Former Emphasis Present Focus

2) BEHAVIORALLY ANCHORED RATING SCALES:

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which

3) 360 DEGREE METHOD:

360 Degree Feedback, also known as 'multi-rater feedback', is the most

1. Setting organizational objectives:-

To take a review of the performance, manager should call frequent meetings

Any programmer if it is to be made successful, it should be timely, promptly, and

1) The Hallow effect or error:-