Industrial Training Report

On

Impact of Performance Appraisal on staff

At

Mahesh Industries

In partial fulfilment of the requirement for the award of Degree of

Bachelor’s in Business Administration (BBA)

By

Priyanshi Baheti

BBA 5th Semester

Batch – 2018-21

Under the guidance of

Dr.Abhilasha Mathur

Submitted to

Dr.Abhilasha Mathur and Dr.Rashmi Mathur

Faculty of Commerce and Management

Lachoo Memorial College of Science & Technology, Jodhpur
(Autonomous)
26th December 2020
   
TO WHOMSOEVER IT MAY CONCERN 

This certifies that Ms.Priyanshi Baheti, student of Lachoo Memorial College of

science and technology (Autonomous) Jodhpur, has undergone her training with us
from ‘1st October 2020 to 31st October 2020’ on the topic “Impact of
Performance Appraisal on staff”. During this period, she was deputed in the HR
(Human Resource) Department.

She has made a meaningful and cooperative contribution to industry and her work
was appreciated. As we found her to be sincere and hardworking.

We wish her all the success for her future endeavors.

Authorized signature with stamp

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 CERTIFICATE

This is to certify that Ms.Priyanshi Baheti of Faculty of Commerce and

Management, Lachoo Memorial College of Science & Technology, Jodhpur
(Autonomous) has successfully completed the project work titled IMPACT OF
PERFORMANCE APPRAISAL ON STAFF in partial fulfilment of requirement
for the award of BBA prescribed by the College, from 1st October 2020 to 31st
October 2020.

This project is the record of authentic work carried out during the academic year
2020– 2021.

Prof Dr Priyadarshi Patni Dr.Abhilasha Mathur and

Director Dr.Rashmi mathur
Internal Project Guide

Date:

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 DECLARATION

I, Priyanshi Baheti hereby declare that this project is the record of authentic work
carried out by me during the academic year 2020-21. This project is plagiarism free
and has not been submitted to any other University or Institute towards the award of
any degree.

Signature
Priyanshi Baheti

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 Acknowledgment

My Sincere, respectful and deepest sense of gratitude thanks to Dr.Abhilasha

Mathur. My Professor is such a cooperative and hardworking personality, her
valuable assistance, keen interest and constant motivation teaches me step for the
project. It would not have been possible for me to reach this stage without their
support and presence.

Also I express my sincere thanks to my Project Guider Mr.Purshotam Baheti,

designation head of research support for guiding me right from the inception till the
successful completion of the project. I sincerely acknowledge him for extending their
valuable guidance, support for literature, critical reviews of project and the report and
above all the moral support had provided to me with all the stages of the project.

I would also like to thank the supporting staff of Mahesh Industries for their help and
cooperation throughout our project.

I am thankful to my parents and friends as they always motivate me and help me

directly or indirectly in my project work.

Regards

Priyanshi Baheti

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 TABLE OF CONTENTS

Sr. No. Particulars Page No.

1 Executive Summary
2 Introduction
3 Objectives
4 Research Problem and Limitations
5 Industry profile
6 Company profile
7 Literature review
8 Research Methodology
9 Observations
10 Findings
11 Suggestions
12 Conclusions
13 Contribution to Host Organisation

Bibliography

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 Executive Summary
Performance appraisal is one of the most important topics in the human resource
department which practices to yield important/critical decisions integral to various
human resources and actions. The purpose of this study is to outlet the relationship
between the perceptions of performance appraisal fairness and employee engagement
in industry context.
The success of a Industry often depends on its employees/Labor. If they are highly
motivated to succeed and are productive in their tasks, the industry has a better chance
of reaching its goals.
Managers and business leaders need to provide constructive feedback to labor on their
performance so that they know where they stand and which areas they need to
improve. Performance appraisals have a number of positive effects on employees and
the entire business.
Performance appraisal is credited by researchers as a tool for spurring employees
towards the attainment of organizational goals. Considering employees’ attitudes as a
vital component in the attainment of organizational goals, this study investigated the
impacts of performance appraisal on the job-satisfaction and commitment of
employees.
Performance appraisal, performance assessment and performance management, all the
terms refer to the process of comparing the actual performance "with the relative
standards, here employees performances are evaluated to determine the extent to
"which employees performances contribute to strategize organization goals.
This report reviews the research on performance appraisal and on its use in linking
pay to performance. It was written to assist federal policy makers as they undertake a
revision of the federal government's system of performance appraisal and merit pay
for mid-level managers, called the Performance Management and Recognition
System.

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 Introduction

Every Industry/Organization sets a target for their growth which they achieve through
their various performance stages. Human resource management is associated with
management of the workforce. They are responsible for the recruitment and retention
of good employees with the training and development of employees to boost their
productivity, efficiency, also satisfaction to promote/grow the organization/industry.
Targets and goals actually mean to an industry and serve yardsticks for measuring
success. HRM (Human Resource) use the performance appraisals, evaluate their
performance appraisal since their performance is vital to organizational success.
Desirable performance of the employees in an industry needs, however, is dependent
on positive job attitudes like job satisfactions and commitment.
Performance appraisals are necessary for the organization/industry to speed up the
employee cognizant of their performance improvements and growth, their abilities
and potentials as well. The performance appraisal system has an impact on other
aspects of Human resource and strategy of industry too.
Effectiveness of the performance appraisal ensures the success in matters relating to
employees as in their selection, training and employee motivation practices. Appraisal
spirit up the employees to construct their own development goals which automatically
leads to personal growth and then industry growth too.
With the Passage of time and evolution process, Performance appraisal had so much
importance as it was practiced among all the sectors of the organization/industry. As it
helps in decision making of awarding and punishment by comparing performance.
The Main purpose of the performance appraisal to the management is that it assists
them to determine who needs what training, who should be promoted, demoted,
retained or fired base on employee performance.
Recent studies had lighted a positive impact on the topic of ‘Performance appraisal in
an organization and also describes the need of appraisal system in an
organization/industry. All the parties/organization is concerned with the process of
appraisal for their betterments and their employees too. 

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 Objectives

This research paper entitled “The Impact of Performance Appraisal on

Employee/staff” relves into the very sensitive topic on the true impact of performance
appraisal on employees, specifically on expatriates and home office managers.

In relation to the problem being presented, the aim of this paper is to address and
answer the following objectives:

 To determine relationship between employee’s performance and performance

appraisal.
 To determine the impact of performance appraisal, motivation and employee
performance
 To identify the main effects of performance appraisal i.e., whether it produces
functional or dysfunctional employees
 To justify if performance appraisal produces functional employees or not
 To justify if performance appraisal produces dysfunctional employees or not
 To determine the proper and effective performance appraisal methodologies
that organizations must adopt and use
 To differentiate the performance appraisal methodologies between expatriates
and home office managers
 To enumerate the different problems and issues encountered by companies
when appraising expatriates.

Limitations
To carry out a successful research study certain factors affect the efforts of studies,
they are among these factors:

1. Lack of time: The time given for the internship/research study was too short
and bounding which could not generate proper data that would help
hypothesis.
2. Lack of fund: These factors really affect the research as I couldn’t travel to
other industry to discover similar experience and conclude it.

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3. Inadequate information: As No industries would give proper data and
information about their industries and their hr resources to an student who
temporary associated with the industry. And also Data kept by them is quite
low and outdated.
4. Lack of proper environment: Industrialist people doesn’t involve in our
programs due to the burden of work, thought what would give them benefit
etc. Mindset which step them back.

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 Industry Profile

Mahesh Industries was founded in 1998 by Mrs.Rameshwari Devi Baheti.Mahesh

Industries is Jodhpur based industries which function according to Hindu undivided
family. This is a Firm which is engaged in manufacturing a wide assortment of wheat
Atta, chakki Atta and wheat flour.
They had a wide and well function infrastructural unit that is situated at Jodhpur
(Rajasthan, India) and helps us in making a remarkable collection of products as per
global standards.
Till now Mahesh industries having good and wide experience of manufacturing wheat
Atta flour , gram flour etc. they have experience of 33 years in this field.

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 Literature Review
Performance appraisal is the system to check the motive and procedures of future
performance. It is an official system to evaluate and check the behaviour of the
individuals during the job and to find the causes of performance and how an
individual can perform well in the coming time to be profitable for him and for the
organization he or she may be working.
Performance appraisal is a general and costly counterproductive workout. It is
normally conducted with a purpose to direct and develop the performance of the
workforce which results in the improvement of the organizational competence and
productivity. This process is pro1ected to slot the individual and group performance
which leads to the organizational mission completion.
Performance appraisal is a process of evaluation of employees (Labour) to recognize
the goals for them these goals will be directly linked to the goal achievement of the
organization and also of the organizational/Industry efficiency.
The goals may be neat, precise, quantifiable, possible, and practical and can be
achieved in a specified time frame. This system use outcomes that are component of
employee’s job which will add mainly to the individual; success and that propose the
maximum profit to the organization.
Performance appraisal is a process when management judges the performance of the
employees by assigning them a certain job, setting their pay, take decision that which
employee should be promoted and which should be retained. The evaluation need to
learn about the productivity of employees, sometimes the process may be straight
forward and sometime it may be informal but mostly the formal system is used.
Performance appraisal evaluates the performance with the opinion of peers,
subordinates, managers, supervisors and also by employees/labour themselves.

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 Purpose of the Study

The purpose of this study is to find the impact of performance appraisal system on
employees productivity and to recommend some best possibletechni0ues to eliminate
problems and barriers in the appraisal system that give confidence to managers and
employees to work together to create synergy, increase the employees productivity
and accomplish the aims and ob1ective of the organization, and every single
department and section.

Significance of Study
The findings of the study will not only be beneficial to the personnel of the chosen
organization, but also to every individual. It will also

 Help managers in other organizations in setting goals and targets for

employees to achieve through proper supervisory control by line managers.
 Aid in identifying and improving the training and development needs of
workers.
 Assist in motivating employees who contribute effectively to the attainment of
organizational goals and ob1ectives.
 Help managers to know how to appraise the performance of their workers

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 Research Methodology
1. Population: There are majority of projects employees and are not permanent
but at the time of my research, the population was 20.
2. Sampling Method: For my research study I will use simple random sampling.
3. Sample size: After studying about the organization, a sample will be then
taken from the population of sample size 9.
4. Types of data
 Primary data: Primary data will be collected by distributing a 0uestionnaire
among different level of employees.
 Data analysis techniques: After collecting the data will be then analyzed with
the help software which will be useful for the statistical and diagrammatical
analysis of the responses.

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 Measurement of PA
A succession of such strategies has garnered the attention of managers and
organizations over the past twenty years. Employee involvement, employee
empowerment, continuous improvement, management by objectives - I am sure that
you can think of many more - have all had the same fatal flaw in implementation.
Most organizations implemented them as a program that was ancillary to the actual
business. By thinking about employee engagement, as a planned business strategy
with expected and measured business results, perhaps it can escape the onus of just
another HR program.
1. Keeping With this in mind, employee engagement takes effective managers who
are committed to:
(a)measuring employee performance and holding employees accountable,
(b)For providing the communication necessary to align each employee‘s actions with
the organization‘s overall business goals,
(c) And pursuing the employee development necessary to ensure success, and making
a commitment (time, tools, attention, reinforcement, training, and so forth) to keeping
employees engaged over the long haul because they fundamentally believe and
understand that no other strategy will produce as much success – for both the business
and the employees.

Procedure
The aim of the procedure is to replace it with one that actually achieves the desired
outcomes of increasing individual development, improving communication between
employees, implementing organizational strategies, and improving organizational
performance.
The motivation to replace the typical performance appraisal methods is achieved by
clearly articulating four essential steps.
 First, it clearly demonstrates the folly of using the typical performance
appraisal. It provides compelling evidence of its inability to achieve the
intended outcomes. Most leaders who use the typical appraisal process are
already convinced of this.
 Second, it explains how we have all been misled (with the best of intentions)
to adopt a flawed paradigm that sustains (justifies) the use of the typical
appraisal.

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 Third, it describes a more effective leadership paradigm (which is based on a
set of assumptions consistent with systems thinking and finally it provides a
replacement for the typical performance appraisal which enables leaders to
address the daunting contemporary challenges that keep them awake employee
performance at night for best results

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 Findings
Organizations cannot use job analysis and the specification of performance standards
to replace managerial judgment; at best such procedures can inform managers and
help focus the appraisal process.

The main objective of this researches’ to find the relationship among Performance
appraisal, employee’s performance and giving attention to the motivation role as a
mediator. The result of the study shows that there insignificant relation between
Performance appraisal and employee’s performance.

And motivation influences and makes strong the relation of Performance appraisal
and employee’s performance. By seeing these results we have analyzed both
hypotheses.

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 Suggestions

1. Follow MBO (Management By Objective) :Management by objectives (MBO) is

the appraisal method where managers and employees together identify, plan,
organize, and communicate objectives to focus on during a specific appraisal period.
After setting clear goals, managers and subordinates periodically discuss the progress
made to control and debate on the feasibility of achieving those set objectives.

2. 360 Degree Feedback : Feedback is important for the best and latest serve because
today’s world is known as a world of changing and in this changing industries had to
exist with benefits (profit) they have to focus on every factor such as customer
demand , competitor strategies etc.

3. Focus on minor points: Focus not only major drawbacks and advantages but on
minor points which would help in solving silly or major mistakes in future. For E.g.
Labor education etc.

4. Mean to reviews: For an industry three reviews would matter such as Self review,
peer review, Customer review.

5. Assessment centre method : In this method , ask employees to take part in

informal discussion , fact finding exercise , decision making problems , role play
exercises meant for the social stimulation exercises which boost the employee
efficiency and thought process which is fit for the different roles , competencies and
business needs.

6. Physiological appraisal: Psychosocial appraisal because every time

employee/labor doesn’t want financial appraisal, they want emotional, behavioral and
motivational response and this will help in the matters of growth and development of
industry and employer too. 

7. Plan after analysis: Plan with proper data, research and new techniques help
industry to step ahead in competition of brand and growth in spite of planning goals
and targets with their means.

8. Keep Positive and Happy environment: In the Positive and happy environment a
labor can work and according old terminology there (Happy and positive
environment) wealth and growth took place.

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 Results
The performance appraisal is primarily about what employees need to deliver to drive
the organization‘s success. It‘s an opportunity to review results, provide feedback on
how results were achieved (if your performance management systems includes
competencies or organizational values), and confirm expectations.

So, each employee solves it. The best managers already understand this. They‘re not
waiting for survey data to shape what they do. They don‘t make engagement a once-a-
year priority, distinct from what they do the rest of the time. They always manage
their teams with an eye toward results and engagement.

Discussion
The outcome of the Performance discussion should be shared for the better
understanding, between the Employees of future requirement (work development
goals) and steps to be taken for its achievements.

An effective change which takes a lot of deliberate and planning change has to be
facilitated when there is a clear vision of what is desired, the skills to do the work,
motivation and agreement, the available right resources, and action plan for how to
get there benefits.

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 Conclusion
Performance appraisal as a concept is not unique to the modern industrial state rather
the practice of watching and appraising others behaviour in accordance with what is
one considers good or bad.

All big industries have been making some kinds of appraisal of their employees. But
in almost all organizations appraisal is made on the basis of subjective assessment
of supervisors and managers.

In some organizations and government department even to-day this practice is

confined only to submission of confidential report by supervisory staff. There are
different dimensions of appraisal. Not only supervisors assess the performance of
their subordinates, subordinates are also asked to assess their co-workers.

Appraisals are a positive way for a manager to let the employees know how well they
are performing the duties that are assigned to them. Sometimes we get caught up in
our job and do not realize what all the company strives to do for employees.

Whether the reward is a lousy employee dinner and or a simple thank you card, your
work is being recognized. Also, employees should be thankful for any job they may
have, because the company did not have to hire on any means.

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 Contribution to Host Organisation
The industries where employees are in charge, have reduced cost, restricted,
rationalized, spending and encourages employees to work harder than ever and more
than 60% of organizations, tell us one of their top dealing is with ―overwhelmed
employee‘s.

The power will shift high performing employees will start to exert control. While
there will be high level of unemployment in places, generally people have change
their perspective.

They want to work which is meaningful, rewarding and enjoyable, Middlelevel staff
will also strive for leadership development, and it can be predicted in the following
ways given below:

1. By recruiting better than your competition, one must expand the sourcing and
recruiting to global level, building talent network.

2. The ―training department‖ will be renamed ―capability development.‖ Companies

will find skills short and they will have to build a supply chain for talent.

3. The days of ―stacked ranking‖ are slowly going away in today‘s talent-
constrained workplace, to be replaced by a focus on engaging people and helping
them perform at extraordinary levels.

4. Engagement and retention will become a top priority. But rather than focus on
engagement surveys, you will expand your horizons to look at engagement from a
holistic standpoint.

5. The time is to build a ―facilitated talent mobility‖ strategy which includes open
access to internal positions, employee assessment tools interview guides, and
leadership values that focus on internal development.

6. Surprise: in our global Human Capital Trends research the need to ―Deskill
HRwas rated one of the top five challenges in every geography around the world.

7. The talent acquisition market is the fastest-changing part of HR: new social
recruiting, talent networks, Big Data, assessment science, and recruiting platforms are
being launched.

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8. Dozens of other fast-growing talent management companies are now offering end-
to-end solutions. And most now offer integrated analytics solutions as well.

9. Talent Analytics is red hot. More than 60% of you are increasing investment in this
area and company after company is uncovering new secrets to workforce performance
each day.

10. It is judged by its ability to acquire, develop, retain, and help manage talent. And
more and more HR is being asked to become ―Data-Driven – understand how to best
manage people based on real data, not just judgement or good ideas

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 Bibliography

1. Business Policy and strategy Management (G.V. Satya Sekhar)

2. Project Planning (James P.Lewis).
3. Assistant Professor (Dr.Abhilasha Mathur).
(Dr.Rashmi Mathur)
4. Google Links
 https://researchtechno.com/
 https://yperfor.com/
 https://vocalroots.com/
 https://mbaguide.com/

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