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1.1 Introduction to Information Technology Sector
The growth in information technology (IT) industry is perhaps the fastest of all that with in a span of a decade or so it has become a multibillion-dollar industry. There are small and big players in this industry, each one is trying to carve a niche for itself. There has been a recent spurt, both globally as well as in India, in the use, demand and implementation of information (IT). This new technology, which has found its uses in the industry, offices and homes. Is seen to be multibillion dollar industry in the years to come. What had started in the 1970s as essentially hardware or a computer-oriented industry has now become a multi-dimensional force with an increasing influence on the quality of life. Indian IT industry is playing a very crucial role in creating National wealth. The Indian business scenario has undergone a vast change during last few years. The new economic policy adopted by the government and the policy of liberalization has brought in new challenges for the Indian corporate world and the employees. The economic policy has necessitated adopting new and to some extent global concepts of managing human resources in India. Human resources are an important asset for any industry to survive and sustain in the long run. The concept of Human Resource Management is increasingly becoming a most vital function of a modern manager.
Performance Appraisal System in TRC
1.2 THEORETICAL BACKGROUND OF THE STUDY A study on human resource practice in the information technology industry by a leading consultant group emphasis the importance of keeping pace with emerging technologies and retains workforce with marketable skills. In this rapidly changing business scenario, enterprises have realised that dynamic human resource policy can help create a healthy work force and a productive proactive work environment. In the organization, concern for employee appraisal has been quite high. In recent years, several experiments and innovations have been attempted and more organization has found. It is necessary to confront these issued in their formal appraisal systems. Yet there is much scepticism about current appraisal practices in many organizations. The validity, objectivity and usefulness of appraisals are often seriously questioned. In short, employee appraisal indicates that there are more questions than answers. The early 1970s saw large computer organisation as a dominant players in the industry. The trend was to provide a range of services to users. Soon in the early eighties, three major trends started emerging, which revolutionized the industry.
The first, an increasingly smaller size of hardware became available due to technology called large-scale integration of circuits or what is commonly known as ‘chips’ it is now commonly known that the power of hardware of the 70s, which was as large as an office room, is now down to the power of personal computer. The second very noticeable trend that emerged was that the size and cost of the hardware became irrelevant when compared to the software development. This made software increasingly powerful and a far more influential tool in the development and use of system. The early 80s saw the emergence of powerful hardware and a large variety of software.
Performance Appraisal System in TRC
The third major development that took place towards the 80s, which had an impact on the hardware, and software industry, was the speed and the use of satellite communication. This made it possible for the users to access a variety of hardware or software anywhere around the world on ordinary telephone lines.
software and communication. several operating system. finance. A detailed survey of key areas in major infrastructure. In a span of two years. hardware. hardware. Indian IT industry is playing a very crucial role in creating National wealth. Government. transportation. as a combination of several facets. IT Vision: 2020 on the national level encompassing various technology areas. as a combination of several facets. It specialisation have facilitated working in many sector such as banking. INFORMATION TECHNOLOGY emerged in the late 80s. software and communication. DSCMIT -4- . advanced technologies and technologies with socioeconomic implications was taken up. over 5000 area experts from the industry. which revolutionized the information technology industry. innumerable application software that facilitates development and easies interface with the user. innumerable application software that facilitates development and easies interface with the user.Performance Appraisal System in TRC 1. It became evident that information technology had a wide range of scope –covered a variety of hardware. several operating system. three major trends started emerging. R&D agencies and academia were brought together for a through survey of shared opinion in select areas. The Indian business scenario has undergone a vast change during last few years. It emerged in the late 80s. It became evident that information technology had a wide range of scope – covered a variety of hardware. The economic policy has necessitated adopting new and to some extent global concepts of managing human resources in India. steel. mining. government and what not. The concept of Human Resource Management is increasingly becoming a most vital function of a modern manager. The new economic policy adopted by the government and the policy of liberalization has brought in new challenges for the Indian corporate world and the employees. Human resources are an important asset for any industry to survive and sustain in the long run.3 INDUSTRIAL BACKGROUND OF THE STUDY In the early eighties.
transportation. strategies. around 100 sub-sectors were covered for specific details. infotainment. banking & finance. The task forces were constituted for seventeen areas. DSCMIT -5- .Performance Appraisal System in TRC Concerted action-plans were formulated on short. While Technology Vision: 2020 exercise covered classical technology sectors like Agro-Food Processing. Each task was headed by a chairperson and comprised of a go-chairperson. Engineering Industry. NGT rankings were formed as the basis to arrive at suggestions for policy guidelines. this article focuses on Service sector due to its immense potential for value-addition and employment generation. The sector currently employs close to 20 millions people in India for the advertising. The exercise was carried out in the backdrop of a complex and heterogeneous social milieu of India and thus a country specific vision merged. medium and long-term basis up to 2020 AD and seventeen key technology areas of prime importance to the country were addressed.. security. management & technical consultancy among several others. testing & certification to Government administration. Delphi. The services sector draws heavily on Information Technology for its advanced applications. The typical technology forecasting techniques like brainstorming. Delphi responses. Services the ‘tertiary sector’ of the economy covers a wide gamut of activities like trading. real estate. coordinator and panels of experts looking at major sub-area s covered. For all the aforesaid areas IT plays the prime role in information processing. scenario rating. nominal group techniques (NGT) etc Were adapted to some extent for the exercise to bring out the vision. The perspective/scenario reports of the panel. Electronics etc. industry. storage & access with a view to proving improved services to the consumers. The contribution of services sector today stands over 40 percent of the total GDP in India. R&D institutes and academia to realise the vision for India 2020 AD. Chemical Industry. HRD services. and action plans for Government NGOs.
anguished knowledge of skills as exemplified in the talent and aptitude of the employees. objectivity and usefulness of appraisals are often seriously questioned. family.1 STATEMENT OF THE PROBLEM In the organisation. religious information etc. Each individual is not only a product of his behaviour inheritance. employee appraisal indicates that there are more questions than answers. From the view point of individual enterprises it is “the representation of the total inherent ability. resource. A failure in recognizing this fact will cause immense loss to the national enterprises by individuals. concern for employee appraisal has been quite high. which is of paramount importance. 2. The literature includes the following: People at work: The principal component of the organization is “Human Resource” or “People at work”. “Isth is Human In the success of any organization most of the problems in the organizational settings are human and social rather than physical. The individual and in the work place exhibit not only similar behavioural patterns and character to a certain degree but also show many dissimilarities. relations. several experiments and innovations have been attempted and more organization has found it is necessary to confront these issued in their formal appraisal system. DSCMIT -6- . but also a result of interaction with his environment. talent. In the recent years. Human resource has been defined from the national point of view as “The knowledge skills.2 REVIEW OF LITERATURE Purpose of Review of Literature The review of literature was conducted to find out the related literature of the topic of the study. In short. Yet there is much skepticism about current appraisal practices in many organizations. creativity ability. People at work comprise a large number of education and literacy standard. The validity. and aptitude obtained in the population.Performance Appraisal System in TRC CHAPTER 2 RESEARCH METHODOLOGY 2.
Jucies has defined Human resources as “The field of mgnt. mission is:The organization Human Resource Development DSCMIT -7- . survival. HRP RECRUITMENT SELECTION T&D SOCIALIZATION P. TRANSFER DEMOTION & SEPERATIONS A brief introduction to HRD and its role in organization Human resource development (HRD) might best be viewed as a comprehensive learning system for the release of the organizations human potentials. simulated) learning experiences and experimental. service. The human resource management process in an organisation. directing and controlling various operative functions of force. Definition of human resource Prof.Performance Appraisal System in TRC People come to work with some specific motive to either earn money or to have better prospectus in future to be treated as human being at work. on the job experiences that are keyed to the organizations existence (profit. and so on).A PROMOTION. mediated. organizing. a system that includes both vicarious (classroom. product. which has to do with planning. They sell their labour for a reasonable wage and other benefits.
education and developmental activities to put it simply. the functions of Human Resource Development are: Training and development. its evaluation. for meeting what ever objectives the org may consider relevant. For. DSCMIT -8- . of its employees. In other words. performance appraisal exercise primarily aims at evaluating individual performance/ performance on the job/ in a group and identifying the need for training of any. groups. The need for appraisal. for the overall development of employees. although it has become customary to do so annually. however. in a documented form. 2) To facilitate the individual’s mobility to the next probable assignment 3) To increase the employee’s commitment to the organization by providing stimulating learning opportunities for personal growth and Change. and/or their terms of attributes and behaviour demonstrated. the roles and functions of Human Resource Development are directed towards the release of the human potential in individuals. Performance appraisal in itself is a vast topic. My project revolves around this field. For the purpose of this study. Performance Appraisal is one of the developmental aspects of Human Resource Development. not only organizational but also for individual and group team.Performance Appraisal System in TRC 1) To maximize the leaser’s (employee’s) effectiveness on the current job. we would define performance appraisal basically. half-yearly or quarterly. as a formal exercise in the organization that makes an evaluation. This formal exercise could be carried out at any point of time for period of time. Scope and importance are all explained under the forth-coming topics. and organisations through learning experiences that result from planned and organized training.
training. efforts have been made to use appraisal systems for motivation.Performance Appraisal System in TRC Performance appraisal – an overview How well a business performs depends. for strengthening the superior – subordinate relationships. remuneration. Appraisal is necessary for all-important decisions relating to people. and development. crucially on how well its employees perform. or for identifying areas for further training. And these research materials have come to form the valuable database for this study. for goal setting and work planning and for improving the total performance of the organization. remuneration reward. The importance of appraisal has always been recognized yet there exists considerable confusion and anxiety about how it ought to be carried out. such as placement. there is no doubt that during the past three decades. in any manner formal or informal. Also it is an area marked by lack of research in Indian practices. oral or documented. open or confidential at any point of time and for any purpose #. depends upon the efficiency of its appraisal system how sharply it can separate effective and ineffective employees. uneasiness about appraisal has been a long standing feature or management. is in the nature of performance appraisal. whether it is placement or promotion. as well as long-term manpower planning and organization development. reward. And one of the key factors in determining how well the organizations employees performs. In the recent years. for most effective communication. The importance of performance appraisal: Performance appraisal is an essential and inescapable managerial activity. many developments have taken place and many innovations have been made in DSCMIT -9- . Nevertheless. Sound appraisal is necessary for all vital decisions regarding people. But in spite of its performance. promotion. If it can spot potentially early enough for it to be nursed. there have been authors who have attempted to bridge the gap through their research. trained and developed. Definition of performance appraisal:Essentially any analysis or review or valuation of performance or behaviour of an employee.
Available literature of the subject reveals that even in the western countries. 1) 2) 3) What are the purposes of an appraisal system? What is to be appraised or measures? (Performance Criteria) How to appraise or measure performance accurately and objectively (Measured Methods and techniques)? In fact they are all inter-related issues and each of them influences the other two. Purpose of appraisal:There are 2 issues relating to purposes: 1) 2) Relates to the different kinds of purposes that appraisal systems can serve Whether and to what extent it is possible to achieve the different kinds of objectives through the same procedure and process of appraisal. which have been a major concern and have engaged attention of practicing managers. Approaches to performance appraisal: Generally there are three approaches used in making Performance Appraisal. 2) Traditional approach.Performance Appraisal System in TRC managerial appraisal systems. Still many issues remain unresolved. where systematic appraisals have been widely practiced over a much longer period than in India and where a fair amount of empirical as well as the oriental research in the relevant issues has been conducted: serious doubt priests about various aspects of appraisal. They are:1) Casual approach. human resource specialists. DSCMIT .10 - . 3) Modern approach. Issues in appraisal There are basically three issues in Performance Appraisal. Psychologists and Social Scientists.
This emphasizes on behavioural values like fundamental trust in goodness. Modern approach:This approach is based upon mutual goal setting and appraisal of progress by both appraiser and appraise.11 - . Methods of performance appraisal There are various methods used in Performance Appraisal they are different because they differ in the sources of traits (or) qualities to be appraised.Performance Appraisal System in TRC Casual approach:This was a non-systemic approach without a standard guideline (or) with a narrow guideline. on personality traits. STRAUSS AND SAYLES have classified Performance Appraisal methods into traditional and modern method. drive. creatively etc. on the other hand. Traditional approach:This approach is highly systematic and takes into account the employees characteristics and/or their counter behaviour or both. modern methods place more emphasis on the evaluation of work results job achievement than DSCMIT . dependability. This is a thing of the past. standard guidelines are used for all employees so that each employee can be compared with his fellow employees. The traditional methods lay emphasis on the rating of the individual’s personality traits such as initiative. capability and responsibility of human beings. The qualities may differ because of difference in job requirements and opinion of management. In this. Now this has given way to more formal approaches.
12) Field review method. The books and articles of various authors are referred to find out the kind of methods which are suited for rating IT sector employees. method. METHODOLOGY OF LITERATURE REVIEW: The review of literature was conducted to analyse the various performance appraisal practices in the IT industries. 9) Critical incident method. 3) Human asset accounting method. The researcher has searched many books on Performance Appraisal to collect the literature about the Performance Appraisal.12 - . 4) Behaviourally anchored rating scale. DSCMIT . 5)Forced choice MODERN METHODS 1) Assessment centre method 2) Management by objective. The information collected was confined to the journals published about the human resource management. 6) Force distribution method. 3) Ranking methods. 11) Work standard method.Performance Appraisal System in TRC TRADITIONAL METHODS 1) Man to man comparison 2) Easy appraisal. 4) Grading methods. To analyse the effectiveness of the Performance Appraisal practices in the IT companies there was no material alike was available in the libraries of the IIMB Bangalore University and other search engines. 8) Checklist. 7) Graphic rating scale. 10) Group appraisal method. description 5) 360 degree appraisal system.
They are also included in the topic for the sake of completion of the coverage of entire topic.Performance Appraisal System in TRC CONCLUSION The facts revealed from the review of literature helped the researcher in building up of problem statement and hypothesis development. problem and conduct the exploratory and the descriptive research. whether the study is really a relevant one in the present scenario or not. the effectiveness of performance appraisal. which are deviant from the primary objectives and the problem statements. but these are important as as study is concerned.. But the literature review provided the researcher with strong back ups to define the The objectives. In building up of the research question and hypothesis statement. the literature helped the researcher by providing enough information about the effectiveness of performance practices in the IT sector. the purpose and the importance of the study are clearly evident in DSCMIT .13 - . The literature review also enabled the researcher to identify the potential topics to be covered in the research. In the beginning stages of the research the question arised was. the literature about the Performance Appraisal.
DSCMIT . 3. 2) Learning the implications of such a system and 3) Finding if such a thorough elaborate system called for any change. Check whether the employees are satisfied with the appraisal system or not. 7. To check whether the employees are assessed for potential or not.Performance Appraisal System in TRC 2.14 - . 2. 5. To find out who conducts the performance appraisal of the employees in the information technology sector. To find out whether the objectives of the performance objectives are met or not. addressed itself to the following under-related tasks. My study.4 NEED OF THE STUDY It was in the context that the present topic for the project was chosen in order to analyse and understand an apparently well defined thorough system of appraisal which in the larger opinion (within the organization) may have aspects that calls for a change. 1) Understanding the system. The importance of this project is to analyse the Performance appraisal system in Information Technology industry and find what aspects call for a change (if any). 6. Secondary Objectives 1. To find out on what basis employees are rated during the appraisal. To check whether performance feedback is given to the employees or not. To identify various methods used for performance appraisal in Information Technology industries. 4. 2.3 OBJECTIVES OF THE STUDY Primary Objective Primary objective of the study is to analyse the effectiveness of performance appraisal practices in information technology industries in Bangalore.
According to Human Resource policies. enterprises have realized that a sound Human resource Management policy can help create a healthy work environment and a productive workforce. it is not only to improve productivity but also for the very survival. the war for human managing. nurturing and retaining talent has emerged to the most critical DSCMIT . capital is as big as the war for business and market share. This in turn led to a radical rethink in the concept of leadership and managing people. Under this changed scenario. successful business we need human capital.5 OPERATIONS DEFINITIONS OF THE CONCEPT IMPORTANCE OF HUMAN RESOURCE MANAGEMENT Indian IT industry is playing a very crucial role in creating National wealth. Human resources are an important asset for any industry to survive and sustain in the long run. The concept of Human Resource Management is increasingly becoming a most vital function of a modern manager. To run a Attracting. The economic policy has necessitated adopting new and to some extent global concepts of managing human resources in India. issue for the most Human Resource manager.15 - . Today. Management of human resource includes guiding human resource into a dynamic organization that attains its objective with a high degree of morale and to the satisfaction of those concerned with it. The new economic policy adopted by the government and the policy of liberalization has brought in new challenges for the Indian corporate world and the employees. The role of human resources managers has seen profound systematic changes with creativity and knowledge becoming the drivers of corporate growth.Performance Appraisal System in TRC 2. The Indian business scenario has undergone a vast change during last few years.
3. DSCMIT . resulting in first rate appraisal systems. The main purposes of employee assessment are: 1. 7. 5. To assess the training and development needs of employees. performance appraisal can be used to determine whether HR programs such as selection.16 - .Performance Appraisal System in TRC INTRODUCTION TO PERFORMANCE APPRAISAL Objectives of performance appraisal Data relating to performance assessment of employees are recorded. and therefore. To decide upon a pay raise where (as in the unorganised sector) regular pay scales have been fixed. APPRAISAL PROCESS Figure 1. Finally. To improve communication. To confirm the services of probationary employees upon their completing the probationary period satisfactorily. training. have less effective appraisal systems. 6.1 outlines the performance appraisal process. stored and used for several purposes. Many organizations make every effort to approximate the ideal process. The process as shown in Fig 1. To let the employees know where they stand insofar as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development. 4. This can also have the effect of increasing the trust between the rater and the ratee. To effect promotions based on competence and performance. many other fail to consider one or more or of the steps. and transfers have been effective or not.1 is some what idealized. Each step in the process is arranged logically. 2. Unfortunately. Performance appraisal provides a format for dialogue between the superior and the subordinate and improves the understanding of personal goals and concerns.
Performance Appraisal System in TRC
1. OBJECTIVES OF APPRAISAL Objectives of appraisal, as stated above, include effecting promotions and transfers, assessing training needs, awarding pay increase, and the like. The emphasis in all these is to correct the problems. 2. ESTABLISH JOB EXPECTATIONS The second step in the appraisal process is to establish job expectations. This includes informing the employee what is expected of him or her on the job. Normally, a discussion is held with this or her superior to review the major duties contained in the job description. Individuals should not be expected to begin the job until they understand what is expected of them. Objective of Performance Appraisal • • • • • • Establish Job Expectations Design on Appraisal Programme Appraise Performance Performance Interview Use Appraisal Data for Appropriate Purposes The performance appraisal process
3. DESIGN THE APPRAISAL PROGRAMME Designing an appraisal programme poses several questions, which need answers. They are (i) (ii) (iii) (iv) (v) (vi) Formal versus informal appraisal Whose performance is to be assessed? Who are the raters? What should be evaluated? When they evaluate? What methods of appraisal are to be used?
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Performance Appraisal System in TRC
FORMAL VERSUS INFORMAL APPRAISAL: The first step in designing an appraisal programme is to decide whether the appraisal should be formal or informal. Formal appraisals usually occur at specified time periods – once or twice a year. Formal appraisals are most often required by the organization for the purpose of employee evaluation. Informal performance appraisal can occur whenever the supervisor feels the need for communication. Whose performance should be rated? To the question as to whose performance should be rated the answer is obvious employees. When we say employees, is it individuals or terms? Specifically the rater may be defined as the individual, workgroup, division or organization. It is also possible to be desirable to appraise performance both at the workgroup level for merit pay increase and at he individual level to assess training needs. Who are the Raters? Raters can be immediate supervisors, specialists from HR department, subordinates, peers, committees, clients, self-appraisals or a combination of several. Immediate supervisor is the fit candidate to appraise the performance of his or her subordinate. There are three reasons in support of this choice. No one is more familiar with the subordinate’s performance than his or her superior. Another reason is that the superior has the responsibility is given to another person; the superior authority may be undermined seriously. Finally, training and development of subordinates is an important element in every manager’s job. Since appraisal programmes are often clearly linked to training and development, the immediate supervisor may be the logical choice to conduct the performance evaluation. Subordinates can assess the performance of their superiors. The use of this choice may be useful in assessing an employee’s ability to communicate,
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Performance Appraisal System in TRC
delegate work, allocate resource, disseminate information, resolve intra – personal conflict, and deal with employees on a fair basis. Peers are in a better position to evaluate certain facts of job performance which the subordinates or supervisor cannot do. Although, clients are seldom used for rating employees performance, nothing prevents an organization form using this source. Clients may be members within the organization who have direct contact with the rater and make use of an output (goods or service) this employee provides. Where appraisal is made superiors, peers, subordinates and clients, it is called the 360-degrees system of appraisal. First developed at General Electric, U.S. in 1992, the system has become popular in our country too. GB (India), Reliance Industries, Crompton Greaves, Godrej Soaps, Wipro, Infosys, Thermax and Thomas Cook are using the method with greater benefits. Many employers use rating committees to evaluate employees. These
committees are often composed of the employee’s immediate supervisor and three or four other supervisors who came in contact with the employee. This choice is welcome when an employee, in the course of his or her job, performs a variety of tasks in different environments. In Self-appraisal the employee himself or herself evaluates his or her own performance. On the positive side, it may be stated that in self-appraisal there is an opportunity to participate in evaluation, particularly if it is combined with goal setting ( as in Management by objective or MBO) and this should improve the manger’s motivation. In practice, a combination of methods is followed for employee assessment.
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Cost effectiveness: The degree to which the use of the organization’s resource (e. 6. DSCMIT . 4. Quantity: The amount produced. 3. Need for supervision: The degree to which a job performer can carry out a job function without either having to request supervisory assistance or requiring supervisory intervention to prevent an adverse outcome. technological and material) is maximized in the sense of getting the highest gain or reduction in loss from each unit or instance of use of a resource. Quality: The degree to which the process or result of carrying out an activity approaches perfection in terms of either conforming to some ideal way of performing the activity. Timeliness: The degree to which an activity is completed or a result produced at the earliest time desirable from the standpoints of both coordinating with the outputs of others and of maximizing the time available for other activities. 1. of fulfilling the activity’s intended purpose. human. The six criteria for assessing performance are. It is obvious that the criteria should be related to the job. expressed in monetary terms.20 - . 2. 5. Interpersonal impact: The degree to which a performer promotes feeling of self-esteem. monetary. or number of completed activity cycles. goodwill and cooperation among co-workers and subordinates.g.Performance Appraisal System in TRC What should be rated? One of the steps in designing an appraisal programme is to determine the evaluation criteria. number of units.
employee assessment may be based upon a test of knowledge or skills.Performance Appraisal System in TRC Behaviourally Anchored Rating Scales Behaviourally anchored scales. BARS help overcoming rating errors. are precisely defined. They are said to be behaviourally anchored in that the scales represent a range of descriptive statements of behaviour on each scale least to the most effective. Figure 10. sometimes called behavioural expectation scales. Unfortunately. BARS were developed to provide results which subordinates could use to improve performance.10 is an example of BARS. A rater must indicate which behaviour on each scale best describes an employee’s performance. Since the raters who will actually use the scales are actively involved in the development process. All dimensions of performance to be evaluated are based on observable behaviour and are relevant to the job being evaluated since BARS are tailor made for job. In order for the test to be job related. The result is a set of rating scales in which both dimensions and anchors DSCMIT . are rating scales whose scale points are determined by statements of effectives and ineffective behaviours. performance tests are apt to measure potential more than actual performance. The scales are anchored by description of actual job behaviour that. The test may be of the paper and pencil variety or an actual demonstration of skills. Areas of performance to be evaluated are identified and defined by the people who will use the scales. Performance Tests and Observations With a limited number of jobs. Even then. represent specific levels of performance. they are more likely to be committed to the final product. 4. this method too suffers from distortions inherent in most rating techniques. 1. Superiors would feel comfortable to give feedback to the raters. 2. supervisors agree. The test must be reliable and validated to be useful. 3. Behaviourally anchored rating scales (BARS) have the following features.21 - .
which values and utilizes employee contributions. In others superiors establishes goals for subordinates. MBO work can be described in four steps. reflects a management philosophy. The final step involves establishing new goals and possibly. T process is repeated. Subordinates who successfully reach the established goals may be allowed to participate more in the goal setting process the next time. This step helps determine possible training needs. The valuator explores reasons or the goals that were not met and for the goals that were exceeded. subordinated and supervisor involvement in goal setting may change. The goal typically refers to the desired outcome to be achieved. as was conceived by Drucker.22 - . what has been done. Practicality may suffer if costs of test development or administration are high. superiors and subordinates work together to establish goals. In some organizations. As subordinates perform.Performance Appraisal System in TRC observations should be made under circumstances likely to be encountered. In the third step the actual level of goal attainment is compared with the goals agreed upon. It also alerts the supervisor to conditions in the organization that may affect a subordinate but over which the subordinate has no control. The second step involves setting the performance standard for the subordinates in a previously arranged time period. Application of MBO in the field of performance appraisal is a recent thinking. DSCMIT . At this point. Management by Objectives It was Peter F. The first step is to establish the goals each subordinate is to attain. and what remains to be done. they know fairly well what there is to do. new strategies for goals not previously attained. The MBO concept. Drucker who first gave the concept of MBO to the world way back in 1954 when his The Practice of Management was first published. These goals can then be used to evaluate employee performance.
6 RESEARCH DESIGN OF THE STUDY Research Purpose Research problems are more likely to be poorly defined. Feedback must be received on what actually happens. Expectations and feedback must be compared. • • • Something must be expected to happen. The research objective should be framed so that obtaining the information will ensure that the research purpose is satisfied. 1) Recognizing/ understanding a problem: A problem is a gap between what was supposed to happen and what did happen between or objective and our accomplishment. One of the hallmarks of a competent researcher is the ability to get to the heart of the management problem. 2) Knowing where and when the problem occurred. and pure motives on the part of the decision-makers. and missing possible decision alternatives that should be analysed. The concept of analysing the problems is based on. in as precise terminology as possible. The research objective is a statement. of what information is needed. Launching a research study with such shaky inputs is a recipe for producing unusable findings and unhappy clients. DSCMIT . Defining problems accurately is a combination of data and judgement that demands real thought and effort. Seldom will research problems come neatly packaged with obvious information requirements.23 - . clear-cut boundaries.Performance Appraisal System in TRC 2. Three elements are required to recognise a problem. only partially understood. It is in the best interest of both the researcher and the mangers paying for the research to be sure that the research purpose is fully understood.
Exploratory. Exploratory research is also useful for establishing priorities among research questions and for learning about the practical problems of carrying out the search. and relevant variables that need to be considered. unstructured. DSCMIT . The exploratory research is conducted primarily to study the feasibility of the research work and to analyse how the respondents respond and what will be the outcomes. there is little prior knowledge on which to build. there may be tentative and speculative research question. Thus.24 - . 2. The research methods are highly flexible. the research questions provide guidance to the researcher by introducing more detail to the research question. Exploratory research: Exploratory research is used when one is seeking insights into the general nature of a problem. the possible decision alternatives. Typically. for the researcher begins without firm preconceptions as to what will be found. The purpose is to provide an accurate snapshot of some aspect of the environment. Then a descriptive research is conducted for collection and data and analysis. or they do not exist at all. Exploratory research hypotheses are either vague or ill defined. Description. and qualitative. Descriptive Research: Descriptive research embraces a large proportion of research. In descriptive research. What kinds of questions will respondents be able to answer? What are the barriers to contacting the appropriate respondents? When should the study be conducted? Etc. The absence to structure permits a thorough pursuit of interesting idea and clues about the problem situation.Performance Appraisal System in TRC Two types of researches are conducted 1.
Hypothesis Development The hypothesis statement is a possible question to a research question. The hypothesis test question is thus a screening question. It is used as a test statistic in testing a hypothesis that provides a set of theoretical frequencies with which observed frequencies are compared.25 - . The tool used for testing of hypothesis-the chi-square test The chi-square test is a useful measure of comparing experimentally obtained results with those expected theoretically and based on hypothesis. The research question is derived from the objectives of the study. How a DSCMIT . 2. One or two tail test These concepts will be examined later in the report. Hypothesis testing begins with an assumption. The significance level 3. The number of degrees of freedom 4. called a hypothesis. They are: 1. hypothesis statement is derived is examined below. which is made about a population parameter.7 Formulation of Hypothesis A hypothesis is a possible answer to a research question. The null and alternative hypothesis.Performance Appraisal System in TRC 2. Then data from appropriate sources are collected and the information obtained from the sample is used how likely it is that the hypothesised population parameter is correct. The researcher should always take the time and effort to speculate as to possible that research question answers that will emerge from the research. Research Question Do the IT sector employees are very much aware and satisfied of the performance appraisal practices in the IT companies? Basic concepts of hypothesis testing For testing a hypothesis the following concepts are necessary.
five-percent level and ten-percent. ‘Fo’ is the number observed in ‘celli’ ‘Fe’ is the expected number in ‘celli’ With degree of freedom ‘df’. the chi-square statistic is defined as: X2= [ Fo-Fe 2/1 Fe] Where.Performance Appraisal System in TRC The chi-square statistic The chi-square statistic (X2) is a measure of the difference between the actual numbers observed in cells termed (fo) and the number expected if the null hypothesis were true. For larger samples the lowest percent levels gives appropriated results. That is under assumption of statistical independence. The most commonly used levels in academic research are one present level. For small samples the significance level can be high. The interpretation of the chi-square test The chi-square test is valid only if the sample size si large enough to get at least five in each cells of the contingency table obtained from the data.26 - . If it is less than five the frequencies are taken from the adjacent items or cells that are pooled together in order to make it five or more than five. ‘r’ is the number of rows ‘c’ is the number of columns The significance level The significance level indicates the percentage of the sample means that is outside the cut off limits. There is no single value for selecting a significance level called alpha (a). DSCMIT . where ‘df’ = (r-1) (c-1) Where. The rejection rule in a chi-square test is to reject the null hypothesis if the computed chi-square value is greater than the table value and vice-versa.
Since the research is of descriptive type. 2.Performance Appraisal System in TRC 2. 1. (5) Determining the relevant sample size. The sources of the secondary data were libraries. The various steps involved in sampling process are given below • • • • • • THE TARGET POPULATION DETERMINE THE SAMPLING FRAME RESOLVING THE DIFFERENCES SELECTING A SAMPLING PROCEDURE DETERMINE THE RELEVANT SAMPLE SIZE EXECUTE SAMPLING The major activities involved in the sampling process are: (1) Identifying the target population. (2) Determine the sampling frame. DSCMIT . The method employed for collecting primary data is the survey method employed for collecting primary data is the survey method using a self-administered questionnaire. The primary data is obtained from the employees in the information technology companies. The primary data are collected especially to address the specific research objectives. 2. (4) Selecting a sampling procedure. a number of factors must be taken in to consideration. Secondary data The secondary data constitute only a negligible amount of the total data obtained for the research. Primary data The primary data constitutes the majority of the data obtained for the study. (6) Obtaining information from respondents.8 SOURCES OF DATA. and w3ebsites search engines. magazines. it is essential to collect primary data for the study. (3)Resolving the differences.9 SAMPLING PLAN When a decision is made to use a sample.27 - .
The researcher should first choose between using a probability sampling or non-probability sampling. procedure by which each sampling unit can be located. Determining the sampling frame It is important to distinguish between the population and the sampling frame. Actually the description of a sampling frame does not have to It may be sufficient to specify the enumerate all population members. In complex situations it is preferred to use a probability sampling procedure. it is a good vehicle for gaining intuitive understanding of the logic and power of random sampling. the research probably will answer the wrong question. The Sampling Procedure There are many ways of obtaining a sample and many decisions are associated with generating a sample.28 - . The sampling frame usually is a list of population members used to obtain a sample. In probability sampling. First. all population members have a known probability of being in the sample. If the population is defined improperly. The simplest. it allows an explicit statement as to how much variation is introduced. Thus it is critical at the outset to identify the population properly and accurate. and area of coverage. In the most probability sampling procedures. conceptually. Therefore the definition of a target population should contain information on sampling elements. sampling units. It not only has practical value. Various methods can be used to select to probability sample. If the population is defined fuzzily. a sampling frame is needed and information on objects / sampling units is necessary prior to employing the sampling process. Second it allows an explicit statement as to how much variation is introduced. is termed simple random sampling.Performance Appraisal System in TRC Determining the target population Sampling is intended to gain information about a population. the results will also be fuzzy. DSCMIT . Probability sampling has several advantages over non-probability sampling.
(1) Planning what to measure (2) Formulate the questions to obtain needed information (3) Decide on the order and wording of the questionnaire and the layout of the questionnaire (4) Using a small sample. has an equal probability of being selected.Performance Appraisal System in TRC Simple random sampling Simple random sampling is an approach in which each population member and thus each possible sample. The first and primary thing to consider is that the sample must be a representative of the population.29 - . There are statistical theories that support the sample size decision.10 THE INSTRUMENTATION TECHNIQUE USED FOR DATA COLLECTION The data from the research can be collected from the organisations only through the personal interview technique. questionnaire needed to be constructed. The sample size determination often involves great difficulty. They are. test the questionnaire for omissions and ambiguity (5) Correct the problem (pre-test if necessary) The instrument used for data For this purpose a collection is a self-administered questionnaire. The implementation is straightforward. there is a sequence of logical steps that every researcher must follow to develop a good questionnaire. There are no established procedures that will lead consistently into a good questionnaire. DSCMIT . The sample size Determining the sample size answer the question how large the sample should be. 2. Further the sample size decision is related to research cost and therefore must be justified. Construction of the questionnaire The questionnaire construction is properly regarded as a very imperfect art. Although each questionnaire must be developed with specific research objectives in mind.
and the non-response problems for some questions. Dichotomous questions. They are: 1. DSCMIT . the degree of it acceptance and its scope for further improvement if required. Data collection The method adopted for data collection was personal interviewing. The composition of the questionnaire The questionnaire consists of five types of questions. 3. General awareness questions. Keeping that in mind the open-ended questions are not used in the questionnaire. cost. 2. an attempt was made to obtain a general feedback about the system. The feedback was collected with the help of questionnaires. the feedback is presented in the pages to follow. There were designed to elicit information about the functional system. there were some constraints such as time. For the data collection.Performance Appraisal System in TRC The questionnaire method has a major disadvantage that no respondent will be ready to explain about the open response questions in the questionnaire.11 Data processing and analysis In order to understand the current Performance Appraisal system with its objectives in mind.30 - . The questionnaire was administered to a cross section of employees. 5. Choice questions. 2. All the tables are based on the questionnaire administered to the respondents. The employees of the organizations are personally visited and interviewed with a self-administered questionnaire. Rating scale questions. Ranking questions. 4. The result will be that most of the open-ended questions will be totally useless. The respective graphical descriptions are given on the pages following the table.
2. as described above involves various steps. The scope of the research is that which indicates the problem with in the boundaries of the research. Although report writing needs some skill.Performance Appraisal System in TRC 2. interpreted and analysed. As a poor report on an otherwise good research will considerably undermine its utility. This implies that the researcher does not always concentrate exclusively on one particular phase of research until its completion. In view of this. coherence. It is necessary that the researcher gives sufficient thought and care to its preparation. A final question of research scope regards the desired precision accuracy of the results. the focus of attention will move from one activity to the other. CONCLUSION The research process. which can be developed with practice. It should be remembered that as research proceeds from the selection of the theme through the collection and analysis of data to the preparation of a report.12 AN OVERVIEW OF THE REPORT Once the data have been tabulated. the researcher should follow the main principles of writing a report. The essence of a good research report is that it effectively communicates its research findings. Much of the interaction between the researcher and decision maker is about clarifying the boundaries of the study. Some of these principles are objectivity. otherwise there is a strong likelihood of its remaining unattended on the manager’s desk. as management is generally not interested in details of the research design. it is required to prepare report embodying the findings of the research study recommendations. though strict adherence to each of these steps may not be necessary and possible.13 SCOPE OF THE RESEARCH After the development of the research questions the research problem become more precise. the research has to exercise extra care to make the report a useful and a worth while document for the management. clarify in the presentation of ideas and use of charts and diagrams. A researcher may deviate from the above sequence and steps depending on his specific needs.31 - . DSCMIT .
ASSUMPTIONS OF THE STUDY: The following assumptions have been made in the research study: • • • • • It has been assumed that the information given by the respondents are authentic and genuine. it was so difficult to approach each one. The investigator humbly submits them at this stage. It has been assumed that secondary data that are collected from various Government Departments are useful in making decision in both regional and divisional level. The sampling process adopted will help in choosing an appropriate sample that truly respondents the actual population. The information provided on Performance Appraisal System are assumed to be factual and their validities are not questioned. so that they were unable to give accurate information. Some of the respondents were not cooperative enough. In many cases respondents were hesitant to give information on sale and profit margin. • • • Time and cost constraints were a major limitation which prevented a large sample from been chosen. It has been assumed that personal interaction is more suitable for collecting the required information for the study.32 - . Since the respondents were scattered. The research design that has been adopted would help in study systematically. DSCMIT . They are as follows: • • • The bias of the respondents may have introduced error in the survey findings.Performance Appraisal System in TRC 2. a study has bounded to have certain limitations. They were reluctant to respond.14 LIMITATIONS OF THE STUDY Despite of all the possible efforts to make then analysis more comprehensive and scientific. Some of the respondents find it difficult to verbalise the response in the given movement.
The second very noticeable trend that emerged was that the size and cost of the hardware became irrelevant when compared to the software development. BACKGROUND: THE THREE LANDMARKS The early 1970s saw large computer organisation as a dominant players in the industry. This new technology.1 PROFILE OF THE INDUSTRY The growth in information technology (IT) industry is perhaps the fastest of all that with in a span of a decade or so it has become a multibillion-dollar industry. The early 80s saw the emergence of powerful hardware and a large variety of software. This made it possible for the users to access a DSCMIT . What had started in the 1970s as essentially hardware or a computer-oriented industry has now become a multi-dimensional force with an increasing influence on the quality of life. and software industry was the speed and the use of satellite communication. which revolutionized the industry. offices and homes. which had an impact on the hardware. The first. The trend was to provide a range of services to users. which was as large as an office room.Performance Appraisal System in TRC CHAPTER – 3 3. is now down to the power of personal computer. Is seen to be multibillion dollar industry in the years to come. both globally as well as in India. each one is trying to carve a niche for itself. The third major development that took place towards the 80s.33 - . There are small and big players in this industry. This made software increasingly powerful and a far more influential tool in the development and use of system. in the use. Soon in the early eighties. which has found its uses in the industry. There has been a recent spurt. demand and implementation of information (IT). three major trends started emerging. an increasingly smaller size of hardware became available due to technology called large-scale integration of circuits or what is commonly known as ‘chips’ it is now commonly known that the power of hardware of the 70s.
finance. transportation. several operating system. Each task was headed by a chairperson and comprised of a go-chairperson. Were adopted to some extent for the exercise to bring out the vision. strategies. Delphi responses. around 100 sub-sectors were covered for specific details. over 5000 area experts from the industry. In a span of two years. medium and long-term basis up to 2020 AD and seventeen key technology areas of prime importance to the country were addressed. Delphi. coordinator and panels of experts looking at major sub-area s covered. software and communication. Government. steel. government and what not. INFORMATION TECHNOLOGY VISION Technology Vision: 2020 on the national level encompassing various technology areas. as a combination of several facets. The task forces were constituted for seventeen areas. advanced technologies and technologies with socioeconomic implications was taken up. The perspective/scenario reports of the panel. scenario rating. It became evident that information technology had a wide range of scope –covered a variety of hardware. innumerable application software that facilitates development and easies interface with the user. nominal group techniques (NGT) etc. The typical technology forecasting techniques like brainstorming. mining.34 - . hardware.Performance Appraisal System in TRC variety of hardware or software anywhere around the world on ordinary telephone lines. R&D agencies and academia were brought together for a through survey of shared opinion in select areas. The exercise was carried out in the backdrop of a complex and heterogeneous social milieu of India and thus a country specific vision merged. INFORMATION TECHNOLOGY emerged in the late 80s. It specialisation have facilitated working in many sector such as banking. NGT rankings were formed as the basis to arrive at suggestions for policy guidelines. and action DSCMIT . A detailed survey of key areas in major infrastructure. Concerted action-plans were formulated on short.
The contribution form services sector today stands over 40 percent of the total GDP in India. The sector currently employs close to 20 millions people in India.2 GROWTH. The development of optical fibre has greatly improved the communication speed.4 percent. 3. open systems. distributed computing devices. IT expenditure by US banks has recorded a compounded annual growth rate of 8. Some of the typical IT applications in major services sector are outlined in the following sections. NIAN. transportation. this article focuses on Service sector due to its immense potential for value-addition and employment generation.Performance Appraisal System in TRC plans for Government NGOs. banking & finance. The advertising. Packet switching transmission methods like asynchronous transfer mode achieving a speed up to 622 million bits per second have been the major breakthrough in DSCMIT . anticipated to touch 2 trillion bites per second eventually. ISDN etc. While Technology Vision: 2020 exercise covered classical technology sectors like Agro-Food Processing. industry.35 - . DEVELOPMENT & PRESENT STATUS OF THE INDUSTRY SERVICE SECTOR: Services the ‘tertiary sector’ of the economy covers a wide gamut of activities like trading.. real estate. HRD services. security. Chemical Industry. The services sector draws heavily on Information Technology for its advanced applications. WAN. Engineering Industry. RDBMS have been important development milestones in IT with major impact of financial services. For all the aforesaid areas IT plays the prime role in information processing. infotainment. R&D institutes and academia to realise the vision for India 2020 AD.). Electronics etc. management & technical consultancy among several others. FINANCIAL SERVICES: Financial services have been the major users of IT and communication technologies. testing & certification to Government administration. The Management Information System (MIS). high-speed data networks (LAN. storage & access with a view to proving improved services to the consumers.
DSCMIT . typically consisting of a computer workstation. All these technologies are used extensively by the banking and financial services sector. booking air-tickets and making hotel reservations. sound etc. monitor. to fund transfer to trading in stocks to buying mutual funds to something mundane like payment of electricity bills. has immensely benefited the information storage system. It has been estimated that there are around 400. Automated Teller Machine (ATM): ATMs though operational in the country for quite some time. the customer gets the benefit of ‘one-stop banking’ at a convenient location.6 GB of data have been instrumental in fast information retrieval and access. videodisk player and a card reader.000 are located in Japan alone. housed in a small enclosure. The Customer Activated Terminal (CAI) or Kiosk is an interactive multimedia display unit. CD-ROMs with storage capacity of 1. Use of multimedia for storage of text. While the banks do not need to invest heavily in real estate for setting up such a branch.000 ATMs worldwide out of which 100. ‘Virtual’ Bank Multimedia technology has been quite effective in bringing the banking services to the doorstep of its customers. Some banks are thinking of establishing ‘virtual’ branches where a customer can at any time call up a member of the bank staff by video conferencing. 1993. India is poised to become one of the world’s largest credit card users by 2000 AD. graphics. ATMs are synonymous with credit cards – 578 million credit cards issued worldwide were involved in a transaction of US $ 1092 billion by June. It allows the customers to browse through information and use the available banking services at their own speed. The latest generation networked ATMs allow the user to perform up to 150 kinds of transactions ranging from simple cast withdrawals & deposits.36 - . are expected to make a big head-way in India. video.Performance Appraisal System in TRC communication technology.
Electronic Funds Transfer at Point of Sale (EFTPOS) While travellers’ cheques meant ‘pay-now-buy-later’ and credit cards had ‘buy-now-buy-now’ but without cash transaction. image-processing technology can have a far reaching impact for such applications for its ‘less paper’ handling characteristics. Image Processing As financial services including capital markets and banking are highly document intensive.Performance Appraisal System in TRC Home Banking Smart home. opening Letters of Credit etc. which are like transferring funds. The Smart Cards are extensively being used for employee ‘clocking in’. Without any paper work. payment of various bills etc. The user presents his ATM card when he buys goods and the EFTPOS system immediately debits his bank account. Smart Cards The ‘processor’ type Smart Cards with in-built integrated circuits (ICs) or microchips offer a wide range of transactional opportunities even from remote areas. The companies can now operate their ban accounts through corporate banking terminals in their own offices. EDI is fast becoming the norm for inter-company transactions and also for procurement of bought-out items from the suppliers. phones with screen built-in modems and programmable microprocessors let the customer access a variety of financial services from DSCMIT .37 - . It has reduced document-processing time from one day to 15-30 minutes and the estimated savings are of the order of $ 1 billion annually. using pay-phones. managing its cash flow. Electronic Data Interchange (EDI) EDI typically denotes paperless financial transactions across the location. withdrawing cash from ATM. Singapore has established Trade-Net to facilitate electronic submission of trade documents by traders to various Govt agencies and the response of these agencies to the sender.
Expert Systems The financial services sector is increasingly using decision support systems (DSS) or expert systems for functions such as credit risk appraisal.Performance Appraisal System in TRC In banks. ATMs etc. forecasting loan delinquencies. investment decisions etc.38 - . As in case of EFT. For paperless and electronic financial transaction in India. Also the legal liabilities of banks and customers in case of loss of ATM card. the introduction of electronic fund transfer. Appropriate technologies for encryption of data for secured transaction. resources assume technologies. Raise the important issues of security and integrity of data. regular & multiple backups. which lets the software literally learn from an example an experience several banks today are using neutral network programmes to detect credit card fraud. a host of legal aspects need to be looked into. one of the most promising developments in this field is the use of ‘neutral network’ approach to build an expert system. extensive use of passwords and other forms of authorization would need to be adopted. The elimination of manual records. Continuous training & skill up gradation of human critical importance towards absorption of new DSCMIT . It is also being used by some leading investments banks to track stock price patterns and predict their movements. a cheque in not required to be presented physically for making payment as per the current practice. image technology could be used for automatic identification or character recognition to read text and diagram wherein the cheques or documents can be scanned. their applications and adoption in India need a conscious approach towards Business Process Reengineering of existing practices and procedures to take the fullest advantages of IT. preventing data corruption and prevention of fraud. This includes issues relating to confidentiality of information. Information Technologies & Financial Services: Key Issues While the technological possibilities of IT may be unlimited.
towards changed legal stipulations. The American example of spending US $ 100 billion on IT applications in financial services during 1970-80 has been a pointer. TV (including satellite and cable transmission) would account for 40 percent of advertisement outlays in 2020 against 22 percent at the current level. Hence.Performance Appraisal System in TRC ATM frauds etc. Online electronic newspapers may become a reality in India with the advances in telecom services but such dramatic changes are unlikely for at least another five years. are not quite understood in the present system. Expenditure of IT has always not been in tune with the returns envisaged. Advertising. Media & Infotainment The areas of advertising. IT applications would have far reaching impact on these services sectors. advertisement & allied business. media & infotainment are interrelated and their growth & momentum are closely linked with economy. With 10 percent more expenditure on IT per worker. Finally. proper implementation programme and technology management aspects assume much importance. And again. localized programmes. The levels of literacy and poverty alleviation also have direct bearing on mass media. the most important aspect of costs involved and benefits expected need a closer scrutiny. TV would With more and more channels the way for multi-million getting available coupled with strong emergence of cable networks for pave entertainment. it is predicted that not more two-thirds of all the households across the country would own a TV by 2020.7 percent per year. it increased productivity by only 0. Future Scenario for India Television would forge ahead with its domineering role in mass media relegating the print media much behind. demography.39 - . Steep rise in input costs. While rural sector would account for nearly 50 percent of TV ownership. life-style and simultaneously with technological innovations. declining advertisement The adoption of new technologies would warrant a thorough review of the system DSCMIT .
The services sector covers a vast range of occupations involving comparatively little capital investment leading to gainful employment and has a very good potential for export revenues. India can truly emerge as a ‘global player’ in the services sector.40 - . monitoring/ prediction of stock price movement and detection of credit card fraud 9. Expert systems and neural networks for credit risk appraisal.350 million to rs.Around 50-75 million households are expected to be potential users of multimedia by 2020.3 FUTURE PROSPECTS AND PLANS OF THE INDUSTRY 1. Business Process Engineering. Multimedia technology enabling simultaneous exchange of voice.Performance Appraisal System in TRC support (anticipated to reduce by 20 percent) and shortage of trained manpower would pose major threats to the newspaper industry. prevention of dates corruption and fraudulent practices DSCMIT . Smart Cards with built in micro chips for paperless cash . Ad spend on multimedia is expected to be around 5% by 2000 and to reach 12-15 % by 2020 AD. pay phones etc 6. Image processing technologies for optical scanning and storage of digitised images 8. The sector calls for continued induction and infusion of knowledge. smart phones for home banking operations 3. Electronic Data Interchange (EDI) for paperless banking transactions 7.120-150 billion by 2020. Networked ATMS for banking and other transactions 2. With the highly skilled manpower and excellent entrepreneurship+ qualities. ‘virtual’ branches of bank operating from Customer Activated Terminal (CAT) or a kiosk 4. 3. Debit Cards for EFTPOS 5. text and data would prove to be a major medium of advertisement.based technologies with cutting edge applications of information technology. training and skills development for absorption of new technologies Information security for confidentiality. Ultimately the market would see an increase from rs.
manufactures. Use of demographic database for age & sex composition. Would come handy for designing new insurance products & services. 16. interactive TV. material suppliers etc. digital camera for storing. viewing & editing still photographs on discs to be available. DSCMIT . fertility & mortality rates. life expectancy etc. warehouses.Performance Appraisal System in TRC 10. Availability of Interactive Television & user controlled on-demand interactive advertising. prevention of data corruption and fraudulent practices 11. 15. Multimedia technology & Virtual Reality to emerge as the major medium of advertisement. 13. music & movies on demand. Information Security for confidentiality . Online Electronic newspaper & Magazines to dominate over print media. Decentralized warehouses to act as hubs for rural distribution to be networked to manufactures and retailers by VSATs. incidence of diseases. Complete networking of supply chain viz. regional disparities. 20. 14. 21. 19. Telemarketing & Visual Shopping would be in great demand.41 - . 18. retailers. Single optical fibre connection to homes to blur the differences between communication & infotainment cables offering the whole range of services like home shopping. Direct broadcast satellites. Bar coding to emerge as an important device for payment processing. PCs for reading electronic book. distributors. income levels & distribution. accounting & inventory management. 17. transporters. Legal aspects for paperless & electronic financial transactions 12.
All the tables are based on the questionnaire administered to the respondents. hypothesis statement is derived is examined below. the feedback is presented in the pages to follow. The tool used to test the accuracy of hypothesis statement was chi-square. The feedback was collected with the help of questionnaires. Seven questions are converged up on this hypothesis.1 ANALYIS AND INTERPRETATION OF DATA In order to understand the current Performance Appraisal system with its objectives in mind. Hypothesis Development The hypothesis statement is a possible question to a research question. The questionnaire was administered to a cross section of employees. The research question is derived from the objectives of the study. The respective graphical descriptions are given on the pages following the table. There were designed to elicit information about the functional system.Performance Appraisal System in TRC CHAPTER 4 ANALYSIS OF FINDINGS 4. the degree of it acceptance and its scope for further improvement if required.42 - . Research Question Do the IT sector employees are very much aware and satisfied of the performance appraisal practices in the IT companies? Hypothesis IT sector employees are very much aware and satisfied of the performance appraisal practices in the IT companies. an attempt was made to obtain a general feedback about the system. The presentation and analysis of the data collected are given below How a DSCMIT .
we can easily come to the conclusion that in information technology industry performance appraisal system is being used. Have you been appraised? Table 1 Yes No Total Analysis The above table says that 100% of the employees in information technology have been appraised Frequency 30 0 30 Percentage (%) 100 0 100 35 30 25 Interpretation Since 100% of the respondents have appraised.43 - . 20 15 DSCMIT 10 .Performance Appraisal System in TRC 1).
DSCMIT .Performance Appraisal System in TRC 2) Have you been appraised Formally or Informally Table 2 Formally Informally Total frequency 30 0 30 Percentage 100 0 100 Analysis The above table 100% of the respondents are formally apprised Interpretation It shows that information technology industry formal appraisal system is in existence.44 - .
Performance Appraisal System in TRC 3) Are you satisfied with an annual appraisal system? Table 3 Yes No Total Frequency 30 0 30 Percentage (%) 100 0 100 Are you sati Analysis In the above table states that 100% of the employees are satisfied with an annual appraisal system.45 - . Interpretation The blue shaded portion in the pie chart clearly pointing out those employees in information technology industries are satisfied with the annual appraisal systems. DSCMIT .
46 - . Interpretation By and large performance appraisal system seems to be satisfied across the employees except 7% of the respondents. DSCMIT . Since the percentage of respondents who find the systems unsatisfactory is less. And 7% of the respondents are unsatisfied.Performance Appraisal System in TRC 4) Are you satisfied with appraisal system? Table 4 Yes No Total Frequency 28 2 30 Percentage (%) 93 7 100 Analysis In the above table shows that 93 % of the employees are satisfied with appraisal system. So we can easily come to the conclusion that all the employees are satisfied with the appraisal system.
Interpretation In the entire information technology sector. While 8 6 4 .Performance Appraisal System in TRC 5) Who appraise you? Table 5 Rating done by Unit head H R department Head of the department Self Immediate supervisor Total Frequency 0 8 8 2 12 30 Percentage (%) 0 27 27 6 40 100 14 12 10 Analysis 8 are appraised by human resources development and head of the department and 2 respondents are appraised by self. frequency In the above table 12 respondents are rated by immediate supervision.47 - DSCMIT 2 . head of the department and very few people are rated by self. most of the employees are rated by immediate supervisors and rest of the employees are rated by human resources department.
Interpretation This shows that majority of the employees are aware about the parameters on which they are aware.Performance Appraisal System in TRC 6) Are you aware of the parameters on which you rated? Table 6 Yes No Total Frequency 28 2 30 Percentage (%) 93 7 100 Analysis In the above table shows that over all 93 % of the employees are aware of the parameters based on which they are rated. 7) Are you satisfied with what is being appraised? DSCMIT . So the human resources department should take care that all employees in the organisation should know about the parameters on which they are rated. Only 7% of the respondents are unaware.48 - . Only few respondents are not aware of.
Interpretation It looks that almost all the employees are satisfied with what is being appraised.49 - . DSCMIT .Performance Appraisal System in TRC Table 7 Yes No Total Frequency 28 2 30 Percentage (%) 93 7 100 Analysis In the above table shows that 93 % of the employees are satisfied with what is being appraised and 7% of the respondents are unsatisfied.
But some companies are using management by objectives and rating scale frequency 6 DSCMIT .50 - 4 . Rating scale Check list Management by objective Total Frequency 14 6 4 6 30 Percentage (%) 47 20 13 20 100 16 14 14 12 Analysis The above tables it is clearly under stood 47% of employees are rated by 360 degree 10 appraisal system. While 20% each are appraised by management by objective and rating scale and 13% of the employees are rated by checklist method.Performance Appraisal System in TRC 8) What is the rating method adopted? Table 8 Rating methods 360 degree appraisal system. Interpretation 8 In the I T industries 360-degree appraisal system is popular.
DSCMIT . Interpretation In the information technology industries almost all the employees are satisfied on their methods.Performance Appraisal System in TRC 9) Are you satisfied with the method? Table 9 Yes No Total Frequency 28 2 30 Percentage (%) 93 7 100 Analysis In the above table shows that 93 % of the employees are satisfied but 7% of the respondents are unsatisfied.51 - .. which they are rated.
Performance Appraisal System in TRC 10) Do you think that formal performance feed back should be given ? Table 10 Yes No Total Frequency 28 2 30 Percentage (%) 93 7 100 Analysis In the above table shows that 93% of the respondents think that the formal performance appraisal feed back should be given except Interpretation All the information technology industry majority of the employees want formal performance feed back to know about their performance. DSCMIT .52 - .
Performance Appraisal System in TRC 11) Is your incentive based on? Table 11 Based on Team work Individual work Total Frequency 26 4 30 Percentage (%) 87% 13% 100 13% Analysis The above table shows that 87% of the respondents’ incentives are based on their team work. While 13% of the respondents incentives are based on their individual work. Interpretation Almost all the information technology industry employees are giving the incentives to the employees based on their team work. DSCMIT .53 - .
15 10 DSCMIT . Interpretation 20 All the employees in the information technology industries are assessed for potential.54 - .Performance Appraisal System in TRC 12) Are you assessed for potential? Table 12 Yes No Total Frequency 30 0 30 Percentage (%) 100 0 100 35 30 30 Analysis 25 In the above table 100% respondents are assessed for potential.
05 The degree of freedom df = (r-1)(c-) = (2-1)(2-1) = 1*1=1 DSCMIT .Performance Appraisal System in TRC Testing of hypothesis IT sector employees are very much aware and satisfied of the performance appraisal practise in the IT companies Obtaining the contingency table There should be at least a frequency of five in each cell of the contingency table The contingency table obtained IT sector employees are Very much satisfied Very much aware FO Cell 6 6 12 84 54 138 90 60 150 NO YES Step .1 laying down null and alternative hypothesis Null hypothesis. H : IT sector employees are not very much aware and satisfied of the performance appraisal practices in the it companies Alternative hypothesise.55 - . Ha : IT sector employees are very much aware and satisfied of the performance appraisal practices in the IT companies Step.2 calculation of chi-square table value Degrees of freedom df=(r-1)(c-1) Where r=number of rows C=number of columns The level of significance ‘a‘ = 5% that is 0.
841 Step.5 the table value is 3. Here the chi-square calculated value is 13.841 so we reject the null hypothesis.56 - .8 2.4 Rejection rule of the chi-square table Ho accepted only if the table value is greater than chi-square computed value and reject Ho if the chi-square table value is less than the chi-square computed value.Performance Appraisal System in TRC The chi-square table value 1 0. Ho. DSCMIT .7 Step.3 chi-square calculated value The chi-square calculated value. x2 = [(Fo-Fe)2 /fe] Where Fo = observed frequency in cell Fe = expected frequencies in cell Fe = expected ratio that back up the hypothesis is 1:4 N= number of cell elements The table used for calculation Fo 12 138 Fe 30 120 Fo-Fe -18 18 [Fo-Fe]2 324 324 [(Fo-Fe]2/fe] = 13. That is we reject the statement ‘’IT sector employees are very much aware and satisfied of the performance appraisal practices in the IT companies.5 [(Fo-Fe)2/Fe] 10.5 Conclusion We reject the null hypothesis.’’ So we accept the alternatives hypothesis. Step.05 = 3.
Performance Appraisal System in TRC Chapter 5 Summary and conclusion Findings of the study “performance appraisal is a formal structured system of measuring and evaluating an employees’ job related behaviours and outcomes to discover how and why the employees is presently perfoming on the job and how the employees can perform more effectively in the future so that the employees. To link rewards to effective performance of individuals departments and the organisation as a whole. The employees are satisfied with the annual appraisal systems. Most of the employees are appraised in a formal way and it is conducted annually.” Performance appraisal is a systematic evaluation of the individual with respect to his performance on the job and his potential for the development. 1 2 3 To provide feedback for growth & development. organization and society all benefit. It is a continues process that determines training. As per the data obtained from the employees in information technology companies. promo ability. The employees in the information technology sector are appraised by the immediate supervisors. self. DSCMIT . head of the department. The study is conducted to analyze the performance appraisal practices in information technology industries. transfers. wage increases etc.57 - . human resource department. To highlight the out standing performers in order that others may role model them. it found that the performance appraisal practices are very much effective in satisfying the objective meant by the appraisers.
skilled and knowledgeable. DSCMIT . It is very difficult to acquire. The employees are satisfied with these parameters. rating scale.58 - . talented. management by objective etc.Performance Appraisal System in TRC The employees are very much aware of the parameters on which they are rated. that are commonly found among the information technology companies in Bangalore. Performance feedback is necessary. behaviour based and result based. The rating of the employees are done on trait based. which they are being appraised. The employees want their appraisal to give the feedback to them. The method adopted for the performance appraisal were 360-degree appraisal. and aid promotion and for identifying the development needs of the employees. check list. The employees are very much satisfied. The employees are assessed for their potential and those employees liked to be assessed for it. So that the ratees are very much satisfied with the methods of performance appraisal process. the method adopted for the rating them. retain and develop these employees. The main objective of the appraisal system is for incrementing the incentives. The employees in the information technology companies believe that for an effective performance appraisal system. The employees in the information technology companies are highly technical. In IT companies the incentives are based on teamwork of the employees. So when the performance appraisal is conducted very much care should be taken.
All the employees should be thoroughly oriented about the performance appraisal system at the time of induction. the following action is recommended to better the understanding of the system and to achieve the objectives of the Performance appraisal system completely. 2. The organisation must device suitable training programmes for those individuals who fall in the average and below average category. 1. Motivational workshop and training should be a part of the organisations routine. It is recommended that the system clearly set standards of performance in terms of achieving deadlines.59 - .Performance Appraisal System in TRC RECOMMENDATIONS AND SUGGESTIONS Based on the analysis and findings. 5. 7. The Performance appraisal system must be reviewed at fixed intervals to keep pace with the changing competitive scenario. It will also help appraisers to know their expected performance level. if possible the training calendar (both technical and non-technical) should be brought-out on a yearly basis. By educating appraisers efforts should be made to make appraisals unbiased. 4. so as to avoid any doubts about the system at a later stage. 3. An open Performance Appraisal System may be adopted where appraisers may get an opportunity to get feedback on his or her performance. 8. showing results on the job etc. 6. DSCMIT . Appraisers weightage in respect of the immediate supervisor should be increased as the immediate supervisor is more responsible and accountable for the employees than anyone else.
60 - . by adhered counselling method. 11. DSCMIT . 12. To instil confidence on the performance appraisal system. 10.Performance Appraisal System in TRC 9. Officers of the lower grade may be educated about the performance appraisal system which would lead to organisation’s effectiveness and also to enhance their cooperation in appraisal. A short discussion with the appraises before any recommendations may be helpful in this regard. The time period of the performance may be short to save time and to prevent it from external influences. observations should be made particularly on the negative areas fact fully. The training needs may be recommended by the Reporting Officer taking into account of appraisers’ area of interest and organisation need.
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