© 2019 IJRAR June 2019, Volume 6, Issue 2 www.ijrar.

org (E-ISSN 2348-1269, P- ISSN 2349-5138)

A STUDY ON PERFORMANCE APPRAISAL

WITH REFERENCE TO ANGEL STOCK
BROKING LIMITED
1 G. SANDEEP, 2GOUTHAMI
1
PG Scholar, Department of Business Administration, TKR College of Engineering, Hyderabad, Telangana
2
Asst. Professor, Department of Business Administration, TKR College of Engineering, Hyderabad, Telangana

ABSTRACT:
The study entitled “A Study on performance appraisal system at Angel Broking Limited”.

Performance Appraisal is not an important or easy management task and it should be an once a easy management
task and it should be an once a year event. The reason they conduct Performance Appraisal in the first place in that
they believe in accomplishing two things. Help employees to understand the quality of their current performance
and identify what they must to do to improve it. Motivate employees to improve their performance.

Keywords: : Company Performance, Employee Efficiency, Employee Motivation, Employee Reward System.

INTRODUCTION
PERFORMANCE APPRAISAL

Appraising the performance of individuals, groups and organizations is a common practice of all societies. While
in some instances the appraisal processes are structured and formally sanctioned, in other instances they are an
informal and integral part of daily activities. Thus, teachers evaluate the performance of students, bankers evaluate
the performance of creditors, parents evaluate the behavior of the children, and all of us, consciously or
unconsciously evaluate our own actions from time to time.

Performance appraisal has been identified as one of the most complex of manmanagement activities. It is often a
difficult and emotion laden process. Performance appraisal has become part of organizational life. Every
organization has some kind of evaluating the performance of its personnel.

Performance appraisal is one of the oldest and universal practices of management. This approach resulted in an
appraisal system in which the employee’s merits like initiative, dependability, personality etc were compared with
others and ranked or rated.

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MEANING

Performance Appraisal is a method of evaluating the behavior of employees in the work spot, normally including
both the quantitative and qualitative aspects of job performance. Performance here refers to the degree of
accomplishment of the tasks the make up an individual’s job. It indicates how well an individual is fulfilling the
job demands. Often the term is confused with effort, which means performance is always measured in terms of
results.

Performance appraisal” is a systematic evaluation of present and potential capabilities of personnel and employees
by their superiors, superior’s superior or a professional from outside. “It is a process of estimating or judging the
value, excellent qualities or status of a person or thing.”

METHODS OF PERFORMANCE APPRAISAL

There are several methods and techniques used for evaluating employee performance.

These may be classified into two broad categories as stated by C.B.Gupta (1998)

 Traditional methods
 Modern methods

TRADITIONAL METHODS

“Traditional method” envisages the following: -

CONFIDENTIAL REPORT

A confidential report is a report prepared by the employee’s immediate superior. It covers the strength and
weakness, main achievements and failure, personality and behavior of the employee. It is descriptive appraisal
used for promotions and transfers of employees.

FREE FORM OR ESSAY METHOD

Under this method, the evaluator writes a short easy on the employee’s performance on the basis of overall
impression. The description is expected to be a factual and as concrete as possible. An essay can provide a good
deal of information about the employee especially if the evaluator gives examples of each one of his judgment.

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STRAIGHT RANKING METHOD

In this technique, the evaluator assigns relative ranks to all theemployees in the same work unit doing the same
job. Employees are ranked from the best to the poorest on the basis of overall performance. The relative position
of an employee is reflected in this numerical bank.

PAIRED COMPARISON METHOD

Each employee is compared with all the others, in pair one at a time. The number of times an employee is judged
better than the others determine his rank. Comparison is made based on overall performance. The number of
comparisons to be made can be decided based on the following: N (N-1)/2, where N is the number of person to be
compared.

FORCED DISTRIBUTION METHOD

In this technique, the rate is required to distribute his rating in the form of a normal frequency distribution. This
method eliminates the rate bias of central tendency. It helps to reduce bias involved in straight ranking and paired
comparison.

GRAPHIC RATINGS SCALE METHOD

The rater is given numeric scale indicating different degrees of a particular trait. The rate is given a printed form
for each employee to be rated. The form contains several characteristics relating to the personality and
performance of employees. Intelligence, quality of work, leadership skills, judgment etc are some of the
characteristics. The rater records his judgment on the employee’s trait on the scale. The numerical points given are
added up, to find out his overall performance standing in the group.

CHECK LIST

A checklist of statements that describe the characteristics and performance of employee in his job. The rater
checks to indicate if the behavior of an employee is positive or negative to each statement. The performance of an
employee is rated on the basis of number of positive checks.

CRITICAL INCIDENT METHOD

In this method supervisor keeps a written record of critical (either good or bad) events and how different
employees behaved during such events. The rating of an employee depends on his positive/negative behavior
during these events.

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GROUP APPRAISAL METHOS

Under this method, a group of evaluators assess the employees. This group consists of the immediate supervisor of
the employee, other supervisor having close contact with the employee’s work, head of the department and a
personnel expert. The group determines the standards of performance for the job, measures actual performance
and offer suggestions for improvement in future.

NEED OF THE STUDY:

Performance appraisal is needed in order to;

 Provide information about the performance ranks basing on which decisions regarding salary fixation,
confirmation, promotion, transfer and demotion.
 Provide feedback information about the level of achievement and behavior of subordinate. This
information helps to review the performance of the subordinate, rectifying performance deficiencies and to
set new standards of work, if necessary.
 Provide information which helps to counsel the subordinate.
 Provide information to diagnose deficiency in employee regarding skill, knowledge, determine training and
development needs and to prescribe the means for employee growth provides information for correcting
placement.
 To prevent grievances and in disciplinary activities.

SCOPE OF THE STUDY

The study has been conducted with respect to effectiveness towards performance appraisal system existing in the
organization.

 This study is useful to know the strength and weakness of appraisal. Therefore, the management can update
the system with necessary changes.
 These finding of the study can be used for conducting further study.
 This study helps in giving suggestion to improve the efficiency of the organization.

OBJECTIVES OF THE STUDY

 To understand the performance appraisal system adopted at Angel Broking Limited.
 To ascertain the awareness level among the employees about the performance appraisal system adopted at
Angel Broking
 To confirm with the employees opinion about the performance appraisal system
 To ascertain the ways and means to improve the performance appraisal at Angel Broking Limited
 To know the satisfactory level of the employer about performance appraisal.

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RESEARCHER METHODOLOGY:
SOURCES OF DATA:
On one hand since the study focuses on the components of performance appraisal system, it was needed to seek
the help of secondary sources of data, i.e., books, articles, to arrive at conceptual clarity of performance appraisal
system.
PRIMARY DATA
A structured questionnaire was used for collection of data. The questionnaire contained
questions on the following aspects:
 Personal Data
 Knowledge and awareness on performance appraisal system.
 Opinion on performance appraisal system
 Suggestions
SECONDARY DATA
Secondary data is collected from journals, magazines, books.
SAMPLE SIZE
At Angel Broking over 500 employees are working including the sub-brokers and their employees.
These 500 employees were considered as the universe and from these 50 respondents of HR Department were
considered as the samples.

REVIEW OF LITERATURE
Ravichandran, Venkataraman and Banumathy (2011) state that the state of Tamil Nadu with 37 operational
sugar mills is a significant sugarproducing state of the country, contributing roughly 9-10 per cent to the national
sugar production. The sugar industry has absorbed about 5 lakh rural people in the state. This paper studied the
performance appraisal system followed in a cooperative sugar mill with a sample size of 75 labourers. The study
has found that the sugar mill had adopted a good appraisal system and takes the appraisal at the time of probation
period and further during the career promotion. The study has also found that there is a gap between the actual and
desired performance. Hence, it was suggested to conduct annual performance appraisal to improve the efficiency
of the employees and provide training on dependability, communication skill and skill development to improve the
employee’s management quality.

Vasset (2010) in his article titled “Employees' perceptions of justice in performance appraisals” states that of all
the tasks undertaken by human resource managers, performance appraisals (PAs) are one of the most unpopular
among employees (Meyer 1991, Murphy and Cleveland 1995, Holbrook 2002, Jackman and Strober 2003). As PA
guides and plans show (Fletcher 2004, Catalyst One 2010), PAs can be implemented in similar ways in
organisations throughout Europe and developed countries elsewhere. But, if employees perceive PA processes as
unfair, they may reject the usefulness and validity of the information they receive and so may not be motivated to

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change behaviour. This article concerns perceptions of organizational justice and explains the results of a study of
perceived fairness in PAs among nurses and auxiliary nurses in Norway's municipal health service.

Zhang and Lovegrove (2009) in their article titled, “Performance appraisal for Chinese state-owned banking
industry” state that performance appraisals, which are used to assist individual development and organizational
planning, are considered an important part of effective human resource management. Studies of performance
appraisal are invariably based on western theories, which can create issues when they are applied in different
cultures, with China being identified as one such area. With China’s WTO accession and the entry of foreign
banks, the Chinese banking sector has become an extremely sensitive area of development for the nation’s
economy. It is important, therefore, to understand the factors surrounding performance appraisal and what does the
process add to the efficiencies in the Chinese state-owned banking industry. This article is based on the data
collected from the employees of Chinese state-owned banks from 2005 to 2007. The findings suggest that the
employees’ perception of justice has a positive relationship to their overall satisfaction with both the performance
appraisal process and their outcomes. However, statistically significant differences were found in relation to
whether employees had received training in performance appraisal or not.

DATA ANALYSIS & INTERPRETATION

1. Gender

SOURCE: Questionnaire given to the employees

DATA ANALYSIS: 62% of the employees working in the organization are Men and 38% of the employees
working in the organization are Women
INTERPRETATION: Majority of the employees working in the organization are Men.

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2. How long have you been working

DATA ANALYSIS: 12% of the employees working in the organization have a maximum experience of 2 years,
40% of the employees have an experience of 3-5 years, 30% of the employees have the experience of 6-10 years
and 18 % have a minimum experience 10 years.
INTERPRETATION: Majority of the employees working in the organization have an experience of 5 to 10 year

3. Performance Appraisal is used to

DATA ANALYSIS: 14% of the employees say that performance appraisal is used to identify the areas of
improvement, 60% say that performance appraisal is used to identify the areas of Training and Developement,
20% say that performance appraisal is used to set performance target and 6% say that all the above options are
necessary.
INTERPRETATION: Majority of the employees working in the organization say that performance appraisal is
used to identify the areas of Training and Development.

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4. The outstanding rating of an employee is due to

DATA ANALYSIS: 44 % of the employees working in the organization say that the outstanding rating is due to
performance, 36% of the employees working in the organization say that the outstanding rating is due to
Qualification and 20% of the employees say that its due to Experience.
INTERPRETATION: Majority of the employees working in the organization say that the outstanding rating of
employee is due to Performance.
CONCLUSION
From the study, we can come to certain conclusions. Though a majority of the respondents are aware of the
performance appraisal system. In the organization they have come to know about it only in the later stage. They
also invariably see the need for the performance appraisal system. Most of the employees feel that performance
appraisal system is objective and that it provides opportunities to discover their potential. They also accept that the
performance appraisal system improves communication within the organization. Though a majority of the
respondents say that they receive feedback from their appraiser they are not very appreciative of the extent of
feedback. The employees express that the use of performance appraisal system can be improved further for their
betterment. The employees’ welfare being the prime concern it should be made sure that the performance appraisal
system should be modified to suit the needs of the employees.

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