A STUDY ON PERFORMANCE APPRAISAL AND ITS INFLUENCE

ON EFFECTIVENESS AND ORGANISATIONAL COMMITMENT

WITH SPECIAL REFERENCE TO EMPLOYEES OF HUBRUM
INNOVATIONS

Dissertation submitted to

MAHATMA GANDHI UNIVERSITY, KOTTAYAM

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

BY
UNNIKRISHNAN C U
Reg.No: 121961

Under the guidance of

Dr.SANTHOSH P THAMPI
PROFESSOR

SCHOOL OF MANAGEMENT AND BUSINESS STUDIES

MAHATMA GANDHI UNIVERSITY, KOTTAYAM
2019-2021
 SCHOOL OF MANAGEMENT AND BUSINESS STUDIES
ATHIRAMPUZHA, KOTTAYAM
2019 - 2021
DEPARTMENT OF MBA

CERTIFICATE

This is to certify that this “A STUDY ON PERFORMANCE APPRAISAL AND ITS

INFLUENCE ON EFFECTIVENESS AND ORGANISATIONAL COMMITMENT
WITH SPECIAL REFERENCE TO EMPLOYEES OF HUBRUM” is a bonafide
record of work carried out by Mr. UNNIKRISHNAN C U, and submitted to MAHATMA
GANDHI UNIVERSITY, KOTTAYAM in partial fulfillment of the requirements for the
award of the post graduate degree of MASTER OF BUSINESS ADMINISTRATION
(MBA) during the year 2019-2021.

PRINCIPAL

HEAD OF DEPARTMENT FACULTY GUIDE

 SCHOOL OF MANAGEMENT AND BUSINESS STUDIES
ATHIRAMPUZHA, KOTTAYAM
DEPARTMENT OF MBA

CERTIFICATE

This is to certify that this “A STUDY ON PERFORMANCE APPRAISAL AND ITS

INFLUENCE ON EFFECTIVENESS AND ORGANISATIONAL COMMITMENT
WITH SPECIAL REFERENCE TO EMPLOYEES OF HUBRUM”, is a record of
bona fide work carried out by Mr. UNNIKRISHNAN C U under my supervision and
guidance. This Project is submitted to MAHATMA GANDHI UNIVERSITY, KOTTAYAM
in partial fulfillment of the requirements for the award of the post graduate degree of
MASTER OF BUSINESS ADMINISTRATION (MBA). All help received by him/her from
various sources have been duly acknowledged.

Place: Kottayam Dr. Santhosh P Thampi

Date: 1/07/2021 Professor

Department of MBA
 DECLARATION

To,
Dr. Santhosh P Thampi
Professor of MBA Department
School of Management and Business Studies

Sir,

I hereby declare that this “A STUDY ON PERFORMANCE APPRAISAL AND ITS

INFLUENCE ON EFFECTIVENESS AND ORGANISATIONAL COMMITMENT
WITH SPECIAL REFERENCE TO EMPLOYEES OF HUBRUM” has been prepared
by me during the year 2019-2021, under the guidance of Dr. Santhosh P Thampi, Professor,
Department of MBA, School of Management and Business Studies, Kottayam. This Project
Report is submitted to M G UNIVERSITY, KOTTAYAM in partial fulfillment of the
requirements for the award of the degree of MASTER OF BUSINESS
ADMINISTRATION (MBA).

Place: Kottayam UNNIKRISHNAN C U.

Date: 1/07/2021
 ACKNOWLEDGEMENT

I wish to take this opportunity to express my sincere expression of gratitude to each

and every one who helped me in the completion of this project study.

First of all I thank GOD ALMIGHTY for giving me all the grace and assistance
throughout my study.
I express my profound and heartiest gratitude to Prof. Dr. E SULAIMAN, Head
of the Department, School of Management and Business Studies, MG University
for his overwhelming support and interest shown in project .
I would like to express my sincere thanks to Prof.Dr. Siby Zacharias, Prof. Dr.
Johney Johnson, Prof. Dr. Santhosh P Thampi, Prof. Dr. Sajimon Abraham, Dr.
Biju M. K, Dr. Madhulal M, Dr. Roshna Varghees and non teaching staffs for giving
me an opportunity to carry out this study.
I owe my deepest gratitude to my PARENTS AND FRIENDS for supporting and
fulfilling all needs throughout the study periods. My acknowledgement is also due to
those to directly my or indirectly help me in completing this work.

UNNIKRISHNAN C U
 INDEX

S.N TOPI PAGE NO.

O C
1 CHAPTER I - INTRODUCTION 1
1.1 BACKGROUND OF THE STUDY 2-6
1.2 SIGNIFICANCE OF THE STUDY
1.3 OBJECTIVES OF THE STUDY
1.4 SCOPE OF THE STUDY
1.5 LIMITATION OF THE STUDY
1.6 INDUSTRY PROFILE
2 CHAPTER II- LITERATURE REVIEW 7
8-19
LITERATURE REVIEW
3 CHAPTER III- RESEARCH METHODOLOGY 10
3.1 DEFINITION OF RESEARCH METHODOLOGY 11-14
3.2 OBJECTIVES
3.3 RESEARCH DESIGN
3.4 UNIVERSE
3.5 METHODS OF DATA COLLECTION
3.6 SAMPLE DESIGN
3.7 TOOL USED FOR ANALYSIS
4 CHAPTER IV – DATA ANALYSIS AND 15
INTERPRETATION
INTRODUCTION 16-39
1. GENDER
2. AGE
3. WORK FROM HOME
4. SATISFACTION
5. LEVEL OF CONFIDENCE
6. PERIOD OF WORKING FROM HOME
7. BREAK TIME
 8. DEDICATED WORK PLACE
9. CLEAR OBJECTIVE
10. EFFECTIVE JOB
11. FACILITIES
12. ADVANTAGE
13. EASY OR DIFFICULT
14. CHALLENGES
15. MANAGE DISTRACTION
16. PRODUCTIVITY
17. TARGETS
18. FUTURE OF WORK FROM HOME
19. REGULAR CONTACT
20. NEED THE TEAM LEADER
21. EMPLOYEE RATING OF WFH
5 CHAPTER V- FINDINGS AND SUGGESTIONS 40
5.1 FINDINGS 41-43
5.1.2 SUGGESTIONS

6 CHAPTER VI - CONCLUSION 44-45

7 REFERENCE 46-47
8 APPENDIX 48-52
 LIST OF TABLES
S TABLE NAME PG NO
NO
1 4.1 GENDER 16-39

4.2 AGE
4.3 WORK FROM HOME
4.4 SATISFACTION
4.5. LEVEL OF CONFIDENCE
4.6. PERIOD OF WORKING FROM HOME
4.7. BREAK TIME
4.8. DEDICATED WORK PLACE
4.9. CLEAR OBJECTIVE
4.10. EFFECTIVE JOB
4.11. FACILITIES
4.12. ADVANTAGE
4.13. EASY OR DIFFICULT
4.14. CHALLENGES
4.15. MANAGE DISTRACTION
4.16. PRODUCTIVITY
4.17. TARGETS
4.18. FUTURE OF WORK FROM HOME
4.19. REGULAR CONTACT
4.20. NEED THE TEAM LEADER
4.21. EMPLOYEE RATING OF WFH
 LIST OF FIGURES
S TABLE NAME PG NO
NO
1 4.1 GENDER 16-39

4.2 AGE
4.3 WORK FROM HOME
4.4 SATISFACTION
4.5. LEVEL OF CONFIDENCE
4.6. PERIOD OF WORKING FROM HOME
4.7. BREAK TIME
4.8. DEDICATED WORK PLACE
4.9. CLEAR OBJECTIVE
4.10. EFFECTIVE JOB
4.11. FACILITIES
4.12. ADVANTAGE
4.13. EASY OR DIFFICULT
4.14. CHALLENGES
4.15. MANAGE DISTRACTION
4.16. PRODUCTIVITY
4.17. TARGETS
4.18. FUTURE OF WORK FROM HOME
4.19. REGULAR CONTACT
4.20. NEED THE TEAM LEADER
4.21. EMPLOYEE RATING OF WFH
 CHAPTER -1

INTRODUCTION
1. INTRODUCTION

Human Resource management, in the sense of getting things done through people, is an
essential part of every manager’s responsibility, but many organizations find it
advantageous to establish a specialist division to provide an expert service dedicated to
ensuring that the human resource function is performed efficiently.

“People are our most valuable asset” is a cliché, which no member of any senior
management team would disagree with. Yet, the reality for many organizations is that their
people remain under valued, under trained and under utilized.

Performance Appraisal is the process of assessing the performance and progress of an

employee or a group of employees on a given job and his / their potential for future
development. It consists of all formal procedures used in the working organizations to
evaluate personalities, contributions and potentials of employees, in improving
organizational effectiveness in the accomplishment of agency mission and goals. “There is
a basic human tendency to make judgments about those one is working with, as well as
about oneself." Appraisal, it seems, is both inevitable and universal. In the absence of a
carefully structured system of appraisal, people will tend to judge the work performance of
others, including subordinates, naturally, informally and arbitrarily. The human inclination
to judge can create serious motivational, ethical and legal problems in the workplace.
Without a structured appraisal system, there is little chance of ensuring that the judgments
made will be lawful, fair, defensible and accurate. Performance appraisal systems began as
simple methods of income justification. That is, appraisal was used to decide whether or
not the salary or wage of an individual employee was justified.

1.1 BACKGROUND OF THE STUDY

The performance appraisal process was firmly linked to material outcomes. If an

employee's performance was found to be less than ideal, a cut in pay would follow. On the
other hand, if their performance was better than the supervisor expected, a pay rise was in
order. Little consideration, if any, was given to the developmental possibilities of
appraisal. If it was felt that a cut in pay, or a rise, should provide the only required impetus
for an employee to either improve or continue to perform well .Sometimes this basic
system succeeded in getting the results that were intended; but more often than not, it
failed. The basic aims and objectives of Performance Appraisal is to help in the realization
of organizational goals. To study the various Performance Appraisal methods followed at
different software companies, to ensure an effective training program for the employees in
case of dissatisfaction and the employees commitment towards the organisation.

1.2 SIGNIFICANCE OF THE STUDY

● The significance of the study is to understand the relationship between the

organisation performance appraisal system and processes, members perception of
the effectiveness of the appraisal system and organizational commitment.
● To find out the effectiveness of the performance appraisal system with the
relevance of the demographic factors of the employees.

1.3 OBJECTIVES OF THE STUDY

● The main objective of the study is to examine the relationship between the
organisation performance appraisal system and processes, members perception of
the effectiveness of the appraisal system and organizational commitment.
● To study the various Performance Appraisal methods followed at Software
Companies.
● To analyze the relationship between the demographic qualities of workers, their
perception of the effectiveness of the appraisal system, and their commitment.

1.4SCOPE

The scope of the study is to understand the relationship between the organisation
performance appraisal system and processes, members perception of the effectiveness of
the appraisal system and organizational commitment. The performance Appraisal is
significantly increasing in the organizations. In order to deliver effective and efficient
performance, it's important to manage the performance management. The research
includes the study of performance in Software Companies.
1.5 LIMITATION OF THE STUDY

Although attempts were made to gather relevant information in connection to study, there
were many shortcomings and difficulties, which could not be overcome.

● The major limitation of this project is the authenticity of the first hand data
collected from the respondents.
● No Performance Appraisal System can be effective if the Appraised don’t know
the criteria under which they have been appraised and judged.

1.6 INDUSTRY PROFILE

Hubrum is an IT systems and software development company that provides the most
innovative solutions for our clients so that they stay ahead in the race at all times. Hubrum
Technologies is headquartered in San Francisco, USA offering fully specialised services
for software development and IT consultancy services to its clients. Recognized both on
global and regional markets, Hubrum continues to operate with higher client expectancy
and flexible solution offers. Hubrum Technologies is a pioneer in developing chatbots for
Enterprises which enables the client and the service provider to establish instant and
successful communication channels and operations & support automation.Every solution
that it provides is industry-specific. As of now, some of the industries that it serves
include education, financial services, healthcare, telecommunications, Oil & Gas,
hospitality, public sector, government, retail, and EPC (Engineering, Procurement &
Contracting).

Vision

We intend to stay prepared for change by constantly innovating and finding new ideas that
inspire all. The emphasis will be on winning the trust of our clients by helping them
succeed at all times. This way, we wish to enhance our reputation worldwide.

Mission

With a mantra of “Ahead of the future,” we intend to provide short-term solutions that
help in achieving long-term goals of our clients. As our clients move up the ladder, we
make sure that their success story does not get hampered by high operational cost. The
company ensures that the clients find the right organizational structure so that they always
remain secure.

SERVICES OFFERED

● IntelArt (Artificial Intelligence Powered Solutions)

● TransLucid (Blockchain Powered Solutions)
● TechLease ( IT Contract Staffing)
● TechHire ( IT Recruitment Consulting)
● MobGo ( Mobile Applications)
● StarBoard (Digital Map solutions)
● Visus ( VR / AR Solutions)
● Integrum ( ERP, SAP, ORACLE Product Implementations)

ENVIRONMENT ANALYSIS

Environmental analysis is a strategic tool. It is a process to identify all the external and
internal elements, which can affect the organization’s performance. The analysis entails
assessing the level of threat or opportunity the factors might present. These evaluations are
later translated into the decision-making process. The analysis helps align strategies with
the firm’s environment.

Political Factors

Political factors play a significant role in determining the factors that can impact Hubrum
long term profitability in a certain country or market. Hubrum is operating in Information
Technology Services in more than dozen countries and exposes itself to different types of
political environment and political system risks. The achievement of success in such a
dynamic Information Technology Services industry across various countries is to diversify
the systematic risks of the political environment. Hubrum can closely analyze the
following factors before entering or investing in a certain market-
Political stability and importance of Information Technology Services sector in the
country's economy.

● Intellectual property protection

● Trade regulations & tariffs related to Technology
● Favored trading partners
● Taxation - tax rates and incentives
● Wage legislation - minimum wage and overtime
● Work week regulations in Information Technology Services
● Mandatory employee benefits Industrial safety regulations in the Technology
sector.

Economic Factors

The Macro environment factors such as – inflation rate, savings rate, interest rate, foreign
exchange rate and economic cycle determine the aggregate demand and aggregate
investment in an economy. While micro environment factors such as competition norms
impact the competitive advantage of the firm. Hubrum can use country’s economic factor
such as growth rate, inflation & industry’s economic indicators such as Information
Technology Services industry growth rate, consumer spending etc to forecast the growth
trajectory of not only –sectory name- sector but also that of the organization. Economic
factors that Hubrum should consider while conducting analysis are –

● Exchange rates & stability of host country currency.

● Infrastructure quality in Information Technology Services industry
● Comparative advantages of host country and Technology sector in the particular
country.
● Skill level of workforce in Information Technology Services industry.
● Education level in the economy
● Labor costs and productivity in the economy
● Business cycle stage (e.g. prosperity, recession, recovery)
● Economic growth rate
● Discretionary income
● Unemployment rate
● Inflation rate
● Interest rates
Social Factors

Society’s culture and way of doing things impact the culture of an organization in an
environment. Shared beliefs and attitudes of the population play a great role in how
marketers at Hubrum will understand the customers of a given market and how they
design the marketing message for Information Technology Services industry consumers.
Social factors that Hubrum should analyze are –

● Demographics and skill level of the population

● Class structure, hierarchy and power structure in the society.
● Education level
● Culture (gender roles, social conventions etc.)
● Entrepreneurial spirit and broader nature of the society. Some societies encourage
entrepreneurship while some don’t.
● Attitudes (health, environmental consciousness, etc.)
● Leisure interests

Technological Factors

Technology is fast disrupting various industries across the board. Transportation industry
is a good case to illustrate this point. Over the last 5 years the industry has been
transforming really fast, not even giving chance to the established players to cope with the
changes. Taxi industry is now dominated by players like Uber and Lyft. Car industry is
fast moving toward automation led by technology firm such as Google & manufacturing is
disrupted by Tesla, which has stated an electronic car revolution.

A firm should not only do technological analysis of the industry but also the speed at
which technology disrupts that industry. Slow speed will give more time while fast speed
of technological disruption may give a firm little time to cope and be profitable.
Technology analysis involves understanding the following impacts –

● Recent technological developments by Wipro Limited competitors

● Technology's impact on product offering
● Impact on cost structure in Information Technology Services industry
● Rate of technological diffusion

Environmental Factors
Different markets have different norms or environmental standards which can impact the
profitability of an organization in those markets. Even within a country often states can
have different environmental laws and liability laws. For example in United States – San
Francisco, Texas and Florida have different liability clauses in case of mishaps or
environmental disaster. Similarly a lot of European countries give healthy tax breaks to
companies that operate in the renewable sector. Before entering new markets or starting a
new business in existing market the firm should carefully evaluate the environmental
standards that are required to operate in those markets. Some of the environmental factors
that a firm should consider beforehand are –

● Weather
● Climate change
● Laws regulating environment pollution
● Air and water pollution regulations in Information Technology Services industry
● Recycling
● Waste management in Technology sector
● Attitudes toward “green” or ecological products
● Attitudes toward and support for renewable energy

Legal Environment

In a number of countries, the legal framework and institutions are not robust enough to
protect the intellectual property rights of an organization. A firm should carefully evaluate
before entering such markets as it can lead to theft of organization’s secret sauce thus the
overall competitive edge. Some of the legal factors that Wipro Limited leadership should
consider while entering a new market are -

● Anti-trust law in Information Technology Services industry and overall in the

country.
● Discrimination law
● Copyright, patents / Intellectual property law
● Consumer protection and e-commerce
● Employment law
● Health and safety law
● Data Protection
 CHAPTER -2

REVIEW OF

LITERATURE
REVIEW OF LITERATURE

Effect of Performance Appraisal System in Organizational Commitment:

Performance Appraisal System which is considered as subset of Performance
Management System comprises of several processes. In THDCIL it is called Performance
Management System. Any effective performance management system includes the
following components:
Performance Planning: Performance planning also known as Goal Setting is the first
component of performance management process. This is basically a stage of target(Goal)
setting or task formulation where performance planning is jointly decided by the appraisee
and the appraiser in the beginning of a performance session cycle. The appraisee fixes the
key /result performance areas(KRA/KPI) to be performed over a year, which is finalized
after a mutual agreement between the reporting officer and the employee. Weightage are
primarily assigned to each KRA depending upon the priority and importance of such
KRA. - Mid Year Review & Final review : Mid Year Review is an important process in
which the appraisee can re-visit the KRAs and goals in the light of reasons which may be
beyond the control of the appraisee or the goal for the organization is changed. The review
helps to find out the progress of the agreed targets and provide any warnings of non-
performance to the Appraisee for improvement. During this period, the targets are
revisited and may be modified/added/deleted depending upon the prevailing circumstances
for the balance period. The appraisal is reviewed again at the end of appraisal cycle. The
appraisee fills the Appraisal Report based on the mutual discussion held during target
setting and also describes his/her achievements over a period of time in quantifiable terms.
On completion of Mid year review at the end of the cycle the final ratings are provided by
the appraiser for the quantifiable and measurable achievements of the employee. The
entire process of review comprises of active participation of both the employee and the
appraiser. - Performance Feedback & Counseling: This is the stage in which the appraisee
is made aware by his appraiser about the areas of improvements. The appraiser is also
informed about whether he/she is contributing to the expected levels of performance or
not. The employee receives an open and a transparent feedback and his training and
development needs of the employee is also identified. In some companies performance
improvement plan is also chalked out which also comprises of a time limit during which
the employee has to improve his/her performance using certain interventions. The
appraiser takes all possible steps the possible steps to ensure that the employee meets the
expected outcomes for an organization through several interventions viz. personal
counseling and guidance, mentoring and sending employee in training programmes which
develop the competencies and improve the overall productivity. - Rewarding good
performance: Rewarding a performer has a long lasting effect on employee motivation and
also has a cascading effect in case of other employees. An employee whose good
performance is recognized and is rewarded has an effect on his self esteem and
achievement orientation. Any contributions duly recognized by an organization helps an
employee in coping up with the failures successfully and satisfies the need for affection it
motivates the employee and he is encouraged for consistent good performance. -
Performance Improvement Plans: The major difference between performance appraisal
and performance management is that the later aims at development and not only
measurement. In cases where there is gap between the performance desired and actual
performance, that is such cases the employee needs to be made aware of the areas of
improvement and a fresh set of goals are to be established and new deadline is provided
for accomplishing those objectives. The employee is communicated about the areas in
which the employee has to improve and a stipulated deadline is also assigned within which
the employee must show this improvement. There is a proper laid down guideline of
performance improvement plan in THDCIL. - Potential Appraisal: The potential appraisal
is performed by implementing competency mapping and various assessment techniques.
Potential appraisal provides crucial inputs for succession planning and job rotation as well.
Potential appraisals are made using a map of skills and various assessment methods.
Potential appraisal provides important input to planning sequences and rotation tasks. The
importance of Performance Management System cannot be over ruled in present times
where performance is playing a pioneer role in deciding the fate of the Organization.
THDCIL being a premier Government organization engaged in generation of Power and
being a growing and learning company is ready to accept the change and be professionally
sound to cope with challenges of future. It firmly believes in importance of Performance
Management and has implemented new system of Performance Appraisal and
Management to derive best from its employees, retain, reward and motivate performers
and at the same time help those who are not performing well to pull themselves.
Organizational Commitment refers to the amount of involvement an employee has in
his/her work. This helps both the worker and the organization to enhance their skills which
successively improves the productivity of the organization and therefore the employee. An
employee who is involved completely in his/her work is claimed to possess great
organizational commitment since it'll make them to become loyal to the corporate and can
commit themselves to the organization automatically altogether aspects which ends up in
greater improvement in their career as well because the productivity. Thus Organizational
Commitment results in greater employee productivity. It has been observed by Deborah F.
Boice and Brian H. Kleiner (1997) that effective performance appraisal systems contribute
towards creation of a motivated and committed workforce. Their study concluded that if
the performance appraisal system does not links employee performance and organizational
goals, it is bound to be less effective.
It has been further observed by Aharon Tziner, Murphy (1999) that attitude influences
performance appraisal system. They found that raters who were high on institutional
commitment were more likely to give good and high ratings than raters on lower on
instrumental commitment. The Human Resource Management practices have positive
effect on organizational commitment, and it has been further observed by Aizzat Mohd.,
Mohamad Abdullah Hemdi and Lye Phei Guat (2008) that career development and
performance appraisal have direct, positive and significant relationships with
organizational commitment. Effect of Performance Appraisal System on Employee
Productivity: In organizational perspective, “productivity” accounts for the amount of
work completed, the quality of that work, and it’s worth in terms of organizational
objectives. Productivity refers to the objective or target of an organization to be achieved
by their employees. Employees can work effectively and efficiently only when they are
satisfied with their work and when they feel responsible for the work they do. This can be
done by motivating the employees in terms of both financial as well as non-financial.
Performance appraisal helps the organization to understand the employee’s interest about
their job and also helps in providing them the necessities or facilities for performing the
job in an effective way. It motivates them and makes them to engage themselves towards
attaining the goal of the organization. It also helps in creating a replacement culture within
the organization so that the employees feel comfortable in their work and which in turn all
these factors lead to increase in productivity. Gerald T. Gabris, Kenneth Mitchell (2009)
studied the influence of employee incentive plans to increased productivity. They found
that significant variation in attitudes does exist toward the merit bonus system as a
stimulus of employee performance. The Performance Appraisal System has helped to
define roles and responsibilities more clearly, review and determine job descriptions,
organizational objectives, and has led to further learning, team building and product
development. Evrim Ustunluo (2009).

CHAPTER -3
RESEARCH METHODOLOGY
3.1 RESEARCH METHODOLOGY
Research methodology can be defined as “a process used to collect information and data
for the purpose of making business decisions”. It is the analysis of the principles of
methods, rules and postulates employed by a discipline. The methodology may include
publication research, surveys and other research techniques, and could include both
present and historical information. The methodology used for this project work is through
the collection of secondary data.

3.2 OBJECTIVES

● The main objective of the study is to examine the relationship between the
organisation performance appraisal system and processes, members perception of
the effectiveness of the appraisal system and organizational commitment.
● To study the various Performance Appraisal methods followed at Software
Companies.
● To analyze the relationship between the demographic qualities of workers, their
perception of the effectiveness of the appraisal system, and their commitment.

3.3 RESEARCH DESIGN

The research design is a comprehensive master plan of the research study to be

undertaken. It is the programme that guides the investigator in the process of collecting,
analyzing and interpreting observations.
Here, description research design is used for study on the impact of work from home on
employee productivity among Hubrum company Descriptive research involves gathering
data that describe events and then organizes, tabulates, depicts, and describes the data
collection.

The descriptive study is a fact-finding investigation with adequate interpretation. It aims at

identifying the various characteristics of a problem under study. It also helps in precise
predictions. It often uses visual aids such as graphs and charts to aid the reader in
understanding the data distribution and therefore offered a better clarification.

UNIVERSE

The universe must be defined in the light of the objectives of the survey. It can be
expressed in geographical terms (locality, municipality, district, province, country or some
immediate category) or in sectional terms (urban population, pottery manufacturers, fuel
wood producers). It is also to place time limits on the definition of the universe, because
its composition and characteristics can change over time. It is recommended that the
universe be given spatial limits that coincide with standard or official groupings (political,
administrative, natural, etc.) in common use in countries, so that its dimensions can be
estimated from information already available. Population of this study included all the
Hubrum company employees who are working from home.

SAMPLE SIZE

The no of sampling unit selected from the population is called size of the sample. The
respondent for the study were 71.

SAMPLE PROCEDURE

Simple random sampling is a sample procedure selected when population has an equal
chance of being selected and the selection of any individual doesn’t influence the selection
of other. The selection purely depends upon chance. So, there is no chance for personal
bias.

3.4 METHODS OF DATA COLLECTION

Data collection is an important aspect of any type of research study. Inaccurate data
collection can impact the results of a study and ultimately lead to invalid results. Here the
data were collected through primary sources and secondary sources.

Primary data:

Primary data are those which are collected for the first time and are always given in the
form of raw materials and originals in character. These types of data need the application
of statistics methods for the purpose of analysis and interpretation. Here, Primary data for
the project were collected by using the questionnaire from employees working from home.

Secondary data:

Secondary data are those which have already been collected by someone and have gone
through the statistical machines. They are usually refined of the raw materials. When
statistical methods are applied on primary there shape and become secondary data. Here
Secondary data mainly consists of data and information collected from different Websites,
Brochures, and Google Scholar.

3.5 TOOLS USED FOR DATA COLLECTION

Investigation through questionnaire: The data collection done used survey method, which
includes questionnaire distribution. Questionnaire designed through Google Form. The
QUESTIONNAIRE consists of a variety of questions presented to the customers for the
response. According to this method a standard list of questions relating to the particular
investigation is prepared. This list of questions is called questionnaire. The data are
collected “by sending the questionnaire to the informants and requesting them to return the
questionnaire after answering the questions”. “This method is an important one and is
usually used by research workers, non-official bodies and private individuals”.
POPULATION OF THE STUDY

A research population is generally a large collection of individuals or objects that is the

main focus of a scientific query. This study on the impact of work from home on employee
productivity among Hubrum company. However, due to the large sizes of populations,
researchers often cannot test every individual in the population because it is too expensive
and time-consuming. This is the reason why researchers rely on sampling techniques.
SAMPLE & SAMPLING A part or fraction is selected from the population, which is
called a sample, and the process of such selection is called sampling.

3.6 SAMPLING DESIGN

The sampling procedure used for the research is Convenience sampling. In this sampling
we select whatever sampling unit is conveniently available. Convenience sampling is a
non-probability sampling method, done from a sample that is easy to reach. Non – random
sampling technique was taken to select a sample from the sampling universe. It does not
provide a chance of selecting each population element. This method is simple, convenient
and low cost.

METHOD USED IN DATA COLLECTION:

Questionnaire method is used for data collection.

QUESTIONNAIRE METHOD

Questionnaire is a set of printed or written questions with a choice of answers, devised for
the purposes of a survey or statistical study. A set of printed questions with a choice of
answers, devised for the purpose of survey or Google form is used.

DATA ANALYSIS

The term analysis refers to the computation of certain measures along with searching for
relationship that exists among data groups.

TOOL USED FOR ANALYSIS

percentage analysis is the tool used for analysis.

3.7 DATA ANALYSIS TECHNIQUES

Percentage Analysis Percentage analysis is one of the basic statistical tools which is
widely used in analysis and interpretation of primary data. It deals with the number of
respondents response to a particular question is percentage arrived from the total
population selected for the study.

Percentage = Number of Respondents /Total Number of Respondents *100

CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

INTRODUCTION

In the previous chapter, the research methodology used by the researcher to achieve the
objectives of the study was discussed. The present chapter deals with the analysis and
interpretation of the data collected from the respondents (n=32). To realize the objectives
of the study both the descriptive statistics.

Topic: A study on performance appraisal and its influence on effectiveness and

organizational commitment with special reference to employees of Hubrum.

GENDER

Table 1: Gender
 Gender Count Percent

Male 38 52.1

Female 34 46.6

Total 72 100.0

Inference

From the above data, 47.22 % are Female and 52.78% are Male employees.

AGE OF EMPLOYEES

Table 2 : Age of employees

AGE COUNT PERCENT

20-29 51 69.9

30-39 19 26.0

40-49 2 2.7

Total 72 100.0
Inference

From the above data, 70.83% of employees are in theage of 20-29.

EDUCATIONAL QUALIFICATION

Table 3 : Educational Qualification

Educational Count Percent

Qualification

Diploma 1 1.4

Graduation 32 43.8

Post Graduation 39 53.4

Total 100 100.0

Inference

From the above data, 54.17 %

MONTHLY INCOME

Table 4 : Monthly Income

MONTHLY INCOME COUNT PERCENT

Less than 10000 14 19.2

10000-20000 13 17.8

20000-30000 9 12.3

30000 & Above 36 49.3

Total 72 100.0
Inference

From the above data, the majority 5% of the employees are having monthly income of
3000 & above.

EXPERIENCE

Table 5 : Experience of Employees

EXPERIENCE COUNT PERCENT

0-5 51 69.9

6-10 18 24.7
11-15 3 4.1

Total 72 100 .0
Inference

From the above data, 70.83% of employees have experience of 0-5 Years.

PERFORMANCE APPRAISAL SYSTEM

Table 6 : Performance Appraisal System

Does your organisation Count Percent

operate a performance
appraisal system?

Yes 71 97.3

No 1 1.4

Total 72 100.0
Inference

From the above data it is clear that performance appraisal is done in the organisation

PERIOD OF PERFORMANCE APPRAISAL

Table 7 : Period of Performance Appraisal

Time period of Count Percent

performance appraisal

Monthly 0 0.0

Half Yearly 69 94.5

Yearly 3 4.1

Total 72 100.0
Inference

From the above data, performance appraisal takes place half yearly for 95.3% of
employees.

EMPLOYEES OPINION OF PERFORMANCE APPRAISAL

Table 8: Employees opinion of Performance appraisal

Employees Opinion Count Percent

Job satisfaction of 19 26.0

employees

Promotion of employees 24 32.9

Evaluation of employees 22 30.9

Motivation 7 9.6

Total 72 100.0
 Inference

From the above data, 33.33% think that performance appraisal is done to promote
employees, 30.56% of employees think that performance appraisal is done to
evaluate their performance, 26.39% employees believe that performance
appraisal is done to evaluate job satisfaction of employees and rest 9.32 believe
that performance appraisal is conducted to motivate employees.

Table 9: Performance appraisal in my company is fair

Performance Appraisal in my Frequency Percent

company is fair
Strongly Agree 40 55.56
Agree 19 26.38
Neutral 10 13.88
Disagree 2 2.77
Strongly Disagree 1 1.38
Total 72 100
 Series 1
Series 1
55.56

26.38

13.88

2.77 1.38
Strongly Agree Agree Neutral Disagree Strongly Disgree

Inference

From the above data it is clear that 55.56% of employees responded that performance appraisal in the
company is fair.

Table 10: Promotion of the employees is purely based on performance appraisal

Promotion of the employees is Frequency Percent

purely based on performance
appraisal

Strongly Agree 34 47.22

Agree 25 34.72
Neutral 9 12.5
Disagree 3 4.16
Strongly Disagree 1 1.38
Total 72 100
 47.22

34.72

12.5

4.16
1.38

Strongly Agree Agree Neutral Disagree Stromgly Disagree

Inference

From the above data it is clear that promotion of the employees is purely based on performance appraisal
(47.22)

Table 11 : Performance Appraisal is based on well defined criteria

Performance Appraisal is based Frequency Percent

on well defined criteria

Strongly Agree 34 47.22

Agree 22 30.55
Neutral 14 19.44
Disagree 3 4.16
Strongly Disagree 2 2.77
Total 72 100
 47.22

30.55

19.44

4.16

Strongly Agree Agree Neutral Disagree Strongly Disagree

Inference

From the above data it is clear that performance appraisal is based on well defined criteria (47.22).

Table 12: Performance appraisal helps people set and achieve meaningful goals

Performance appraisal helps Frequency Percent

people set and achieve
meaningful goals

Strongly Agree 28 38.88

Agree 23 31.94
Neutral 16 22.22
Disagree 3 4.16
Strongly Disagree 2 2.78
Total 72 100
 38.88 39.14

22.22

4.16

Strongly Agree Agree Neutral Disagree Strongly Disagree

Inference

From the above data it is clear that performance appraisal helps people set and achieve meaningful goals
(38.88)

Table 13 : Performance of the employees improves after the process of performance appraisal

Performance of the employees Frequency Percent

improves after the process of
performance appraisal
Strongly Agree 26 36.11
Agree 24 33.34
Neutral 14 19.44
Disagree 5 6.94
Strongly Disagree 3 4.16
Total 72 100
 36.11
33.34

19.44

6.94
4.16

Strongly Agree Agree Neutral Disagree Strongly Disagree

Inference

From the above data it is clear that the performance of the employees improves after the process of performance appraisal
(36.11)

Table 14 : Performance Appraisal improves motivation and job satisfaction

Performance Appraisal improves Frequency Percent

motivation and job satisfaction
Strongly Agree 37 51.38
Agree 19 26.38
Neutral 13 18.05
Disagree 2 2.77
Strongly Disagree 1 1.38
Total 72 100
 51.38

26.38

18.05

2.77
1.38

Strongly Agree Agree Neutral Disagree Strongly Disagree

Inference

From the above data it is clear that performance appraisal improves motivation and job satisfaction (51.38).

Table 15 : Work Commitment

Work Commitment Frequency Percent

Strongly Agree 35 48.61
Agree 21 29.16
Neutral 13 18.06
Disagree 2 2.78
Strongly Disagree 1 1.38
Total 72 100
 48.61

29.16

18.06

2.78
1.38

Strongly Agree Agree Neutral Disagree Strongly Disagree

Inference

From the above data it is clear that the employees have high workplace commitment
(48.61).

Table 16: Team Work

Team Work Frequency Percent

Strongly Agree 25 34.73
Agree 24 33.34
Neutral 16 22.23
Disagree 4 5.56
Strongly Disagree 3 4.17
Total 72 100
 34.73
33.34

22.23

5.56
4.17

Strongly Agree Agree Neutral Disagree Strongly Disagree

Inference

From the above data it is clear that workplace performance affect the teamwork (34.73).

Table 17 : Willingness to put great effort beyond expectation

Willingness to put great effort Frequency Percent

beyond expectation
Strongly Agree 36 50
Agree 19 26.39
Neutral 14 19.45
Disagree 0 0
Strongly Disagree 3 4.17
Total 72 100
 50

26.39

19.45

4.17
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Inference

From the above data employees are willing to put great effort beyond expected to help
organization to be successful (50%).

Table 18 : Loyalty towards organization

Loyalty towards organization Frequency Percent

Strongly Agree 29 40.28
Agree 27 37.5
Neutral 14 19.45
Disagree 1 1.39
Strongly Disagree 1 1.39
Total 72 100
 40.28
37.5

19.45

1.39 1.39

Strongly Agree Agree Neutral Disagree Strongly Disagree

Inference

From the above data it is clear that employees feel much loyal towards the organization
(40.28)

Table 19 : There is very little situation to leave the organization

There is very little situation to Frequency Percent

leave the organization
Strongly Agree 23 31.94
Agree 35 48.61
Neutral 23 31.94
Disagree 0 0
Strongly Disagree 2 2.78
Total 72 100
 48.61

31.94 31.94

2.78
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Inference

From the above data it is clear that there is very little situation to leave organization.
 CHAPTER 5

FINDINGS AND SUGGESTIONS

 FINDINGS

The impact of performance appraisal through Organizational Commitment and towards

productivity can be given as a conceptual framework as follows:

Performance Appraisal System can be used to encourage the employees to have a great
Organizational Commitment. It enables them to work efficiently for the organization by
considering the organization as their own and by having a great commitment. It also helps
them to align their efforts with the organizational objectives and since now a day’s
performance management system is also being used for taking several decisions arranging
from identifying training needs, carrying out promotions, deciding variable incentives and
even carrying out periodical review based on employee performance to find out the
efficacy of the employees in public service.

Performance Appraisal System also helps the employees to motivate themselves in two
ways; either financially or non-financially. Incentives make employee more committed.
Non-Financially, by providing extra roles and responsibilities, it helps the employees to
have a great citizenship behaviour which helps them to work more and to increase in their
productivity. Once the employees feel that they are the citizens of the organization they
will behave responsively and these factors will help them to increase in their productivity.
 5.2 SUGGESTIONS

Providing ongoing feedback eliminates surprises in the evaluation, helps supervisors

focus on supporting employees, and gives employees time to improve performance.

● Training appraisers are essential for achieving better results with performance
appraisal.
The training should be designed to improve the appraiser's capabilities.
● Effective performance appraisal requires equal standards against which employees are
assessed. In the absence of equal standards, employees are assessed with subjectivity,
which may destroy the process of appraisal and leave it as a body without
soul.Therefore,
the problem of unequal standards can be minimized by ensuring that the appraisal
criteria
are job-oriented, communicating performance expectations to the employees before the
appraisal review.
● Inorder to improve the performance of the employees company can give overtime pay,
development of goals for reward system.
● The organisation can create a good workplace culture inorder to improve employee
performance.

CHAPTER -6

CONCLUSION AND REFERENCE

 CONCLUSION

The study conducted on employees working in Hubrum, has given me insight that the processes
of Performance Appraisal System influences Organizational Commitment of employees and their
productivity. The employees who are apprised properly according to their performance using the
performance appraisal system get motivated automatically. Performance appraisal system helps
both the employees and the organization in increasing their productivity. Performance Appraisals
can go a long way in improving productivity at workplace by overall improving employee
motivation resulting in employee productivity.
Being an MBA student, the project at Hubrum was a very effective one. It has given me a first
opportunity to experience and has helped me to gain practical knowledge as well as theoretical
knowledge about performance appraisal and its influence on effectiveness and organisational
commitment of employees. The study leads me to find the influence of visual merchandising on
buying behavior and it has proved that there is significant relationship between the variables.
 REFERENCE

● Aguinis, H., Joo, H., & Gottfredson, R. K. (2011). Why we hate performance
management and why we should love it. Business Horizons, 54(6), 503—507.
● Bacal, R., (1999). Performance Management. A Briefcase Book. McGrawHill.
New York Chan, Y.C.L and Lynn, B.E. (1991). Performance evaluation and the
analytic hierarchy process. Journal of Management Accounting Research, 3, 57-87.
● Kaplan, R.S. & Norton, D.P. 1996. The balanced scorecard: translating strategy
into action. Boston, Mass: Harvard Business School Press.
● Fletcher, C. (2001), “Performance appraisal and management: the developing
research agenda”, Journal of Occupational and Organizational Psychology, Vol.
74.
● Forth, J.and McNabb, R. (2008), "Workplace performance: a comparison of
subjective and objective measures in the 2004 Workplace Employment Relations
Survey", Industrial Relations Journal, 39, pp. 104-123.
● Antecedents of Performance Appraisal and Organizational Performance in Water
and Sanitation Companies in Kenya: A Case of Murang‟a Water and Sanitation
Company limited
APPENDIX
 QUESTIONNAIRE

TOPIC :A STUDY ON PERFORMANCE APPRAISAL AND ITS INFLUENCE ON

EFFECTIVENESS AND ORGANISATIONAL COMMITMENT WITH SPECIAL
REFERENCE TO EMPLOYEES OF HUBRUM INNOVATIONS

1. Gender

Male ( ) Female ( )

2. Age

20-29 ( ) 30-39 ( ) 40-49 ( )

3. Educational Qualification

Diploma ( ) Graduation ( ) Post Graduation ( )

4. Monthly Income

<10000 ( ) 10000-20000 ( ) 20001-30000 ( ) 30000 & above ( )

5. Experience

0-5 ( ) 6-10 ( ) 11-15 ( )

PART 2: PERFORMANCE APPRAISAL

1. Does your organisation operate a performance appraisal system?

● Yes ( )
● No ( )

2. When performance appraisal is made in your organisation?

● Monthly ( )
 ● Quarterly ( )
● Yearly ( )
3. In your opinion performance appraisal is?

● Evaluation of Employees ( )
● Promotion of Employees ( )
● Job Satisfaction of Employees ( )
● Motivation ( )

4.
Sl.No Statements Strongly Disagree Neutral Agree Strongly
Disagree Agree

1. Performance
appraisal in my
company is fair

2. The appraisal
system gives each
appraisee an idea
of what is
expected of him
next year

3. Promotion is
purely based on
performance
appraisal

4. The appraisal
system provides
an opportunity for
self review and
reflection

5. The performance
appraisal is based
on well defined
criteria

PART 3: EFFECTIVENESS OF PERFORMANCE APPRAISAL

1.
 Sl. Statements Strongly Disagree Neutral Agree Strongly
No Disagree Agree

1 Performance appraisal
helps people set and
achieve meaningful
goals

2 Performance appraisal
give criticism in a
friendly and positive
manner

3 Performance of the
employees improves
after the process of
performance appraisal

4 Performance appraisal
improves motivation
and job satisfaction

5 I Am satisfied with
present performance
appraisal system

6 The performance
appraisal help to
change the behaviour
of employees

2.Rate how you feel about your workplace performance in these areas:

Sl.No Statements Highly Dissatisfied Neutral Satisfied Highly

Dissatisfied Satisfied

1 Punctuality

2 Work
Commitment

3 Work Conduct
and Ethics

4 Teamwork

5 Adapting to
 Work
Environment

PART 4 : ORGANIZATIONAL COMMITMENT OF EMPLOYEES

Sl. Statements Strongly Disagree Neutral Agree Strongly

No Disagree Agree

1. I Am willing to put
great effort beyond
expected to help
organization to be
successful

2. This organization
really inspires the
very best in me in
the way of job
performance

3. I feel very much

loyal to this
organization

4. I would accept
almost any type of
job assignment in
order to keep
working for this
organization

5. For me this is the

best of all possible
organizations for
which to work

6. There is very little

circumstances to
cause me to leave
this organization

7. I talk up this
organization to my
friends as a great
organization to
work for