A Study on

Performance Apraisal
With Reference to Hotel Dasapalla, Visakhapatnam

A project report submitted to JNTU, Kakinada

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

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

BERI GEETHIKA

(PIN. NO: 21L61E0002)

UNDER THE GUIDANCE OF

Mrs. M. PADMAJA
M.Com. MBA, (PhD)
Asst. Professor

DEPARTMENT OF BUSINESS AND MANAGEMENT STUDIES

CHAITANYA ENGINEERING COLLEGE
KOMMADI, VISAKHAPATNAM-530048

(2021-2023)
Mrs. M.PADMAJA Tel: Of office – 2793322
Head of the Fax: 0891 – 2793666
Department of Business and Chaitanya Engineering
CollegeManagement Studies Visakhapatnam –
530048

CERTIFICATE

This is to certify that the project report entitled “A STUDY PERFORMANCE

APRAISAL with Reference to “ HOTEL DASAPALLA

VISAKHAPATNAM” submitted in partial fulfillment for the award of Master

of Business Administration by BERI GEETHIKA, PIN No.21L61E0002

during the academic year 2021-23 under my guidance and supervision. This report

has not been submitted previously for the award of any Degree, Diploma, associate

ship, Fellowship or similar title in this University or in any other University.

M.PADMAJA Mrs. M. PADMAJA

Project Supervisor Head of the Department
 DECLARATION

I hereby declare that the exposition “A STUDY ON PERFORMANCE

APRAISAL with Reference to “HOTEL DASAPALLA,VISAKHAPATNAM”

submitted by me to JNTUKakinada in partial fulfillment for the Award of the

Degree of Master`s in Business administration is a original work carried out by me .

I completed this work under the guidance of Mrs. M. PADMAJA, Asst. Professor,

Department of Business & management studies, Chaitanya Engineering College,

Visakhapatnam.

I also declare that this dissertation has not been previously formed the basis

for the award of any Degree, Diploma Associate ship, fellowship or similar title in

this university or in any other university.

PLACE: Visakhapatnam
DATE: BERI GEETHIKA
 ACKNOWLEDGMENTS

I take this opportunity to express my sincere gratitude to the following eminent

personalities without whose help & guidance, the successful completion of my
project work would have remained a dream.

I extend my sincere thanks to Sri. K. SURESH, Principal of Chaitanya

engineering college giving this opportunity to this project.
I also thank to Mrs. M. PADMAJA for his advice and giving me opportunity
to do this project

I express my gratitude to my project work guide Mrs. M.PADMAJA for her

valuable guidance and input throughout the project work and for providing the
relevant material needed for the completion of my project.

I express my gratitude to Sri. N.APPA RAO, H.R.Manager and also I express my

gratitude to General Manager for continuous support and encouragement throughout
my project.

Place:
Date: BERI GEETHIKA
 CONTENTS

Pgno.
1.CHAPTER-I 1-9
 INTRODUCTION

2. CHAPTER-II 10-27
 INDUSTRY PROFILE

3.CHAPTER-III
 THEORETICA FRAMEWORKOFTHESTUDY 28-59

4.CHAPTER-IV
 DATAANALYSIS&INTERPRETATIONOFTHESTUDY 60-75

5.CHAPTER-V 76-82
 SUMMARY

ANNEXURE
CHAPTER-I

1
 INTRODUCTION

Appraising the Performance of individuals, group and organizations is a common

practice of all societies. While in some instances these appraisal processes are
structured and formally sanctioned. In other instances, they are informal and integral
part of daily activities. In social interactions, performance is conducted systematic
and planned manner to achieve popularity in recent years. The process of HRD helps
the employees to achieve and develop technical, managerial, behavioral knowledge,
skills and abilities and moulds the values beliefs, attitudes to perform present roles.
The process of performance appraisal helps the employee and management to know
the level of employee‟s performance compared to the standard/pre-determined level.
Performance appraisal is defined as the process of assessing the performance and
progress of an employee or a group of employees on a given job and his/her
potential for future development. It consists of all formal procedures used in
working organization and potential of employees. According to Flippo,
“Performance Appraisal is the systematic, periodic and an important rating of an
employee‟s excellence in matters pertaining to his present job and his potential for a
better job.” Performance Appraisal is essential to understand and improve the
employee‟s performance through HRD. In fact, performance appraisal is the basis
for HRD. It was viewed that performance appraisal was useful to decide upon
employee promotion or transfer, salary determination and the like. But the recent
development in human resources management indicates that performance appraisal
in the basis for employee development. Modern performance appraisal techniques
are suitable for growth strategies like expansion, diversification joint ventures,
mergers and acquisitions. These strategies help the company to meet competitions,
enhance market share, innovate and create new markets, new products and new
technologies.
Traditional performance appraisal techniques and appraised by superiors are suitable
for retirement strategies like turnaround, disinvestment. Performance appraisal is a
method of evaluating behavior of employee in the work spot, normally including
both the quantitative aspects of job performance. Performance here refers to the
degree of accomplishment of the tasks that make up an individual‟s job. It indicates

2
how well as individual is fulfilling the job demands. Often the term is confused with
efforts but performance is always measured in the results and no efforts. A student,
for examples, may exert a great deal of case the effort expended is high but
performance is low. In order to find out whether an employee is worthy of continued
employment or not, if so, whether he should receive a bonus, a pay rise for
promotion, his performance needs to be evaluated from time to time when properly
conducted. performance appraisal not only but the employee know how well he is
performing but should also influence the employees future level of the effort,
activities, results and task direction. Under performance appraisal, we evaluate not
only the performance of a worker but also his potential for development.
Performance appraisal is the systematic description of an employee‟s job relevant
strengths and weakness. Appraisals are arranged periodically according to a definite
plan. Performance appraisal is not job evaluation. Performance appraisal refers to
how well someone is doing the assigned job. Job evaluation determines how much a
job is worth to the organization and, therefore, what range of pay should be assigned
to the job. Performance appraisal is a continuous process on every large scale
organization. Performance Appraisal is one of the oldest and universal practices of
Management. It refers to all formal procedure used in working organization to
evaluate the personalities and contributions and potential of group members.
Performance appraisal involves the distinct process of observation and evolution of
what observed. In the practice of observation and evolution represents but depends
of a 3- part sequence.

3
 NEED FOR THE STUDY

Performance appraisal or merit rating is the mechanism to assess the

contribution of all human resources working at each level of the organsation
during a specific period of time in an organization. Hotel Daspalla is a 3 Star
hotel located in the heart of the business district. In this background an attempt
has made to the company through the statement of "PERFORMANCE
APPRAISAL" to keep my all efforts to.

 When the employee has been selected, trained and motivated he is then
appraised for his performance. Performance appraisal is the step where the
management finds out how effective it has been at hiring and placing
employees.

 Performance appraisal is used to evaluate the behavior of the employee‟s in

the work spot including both the quantitative aspects of the job performance.

 An organization, be it a business, government agency, charitable organization

or even a university, has to find ways to accurately measure the performance
of its employees in order to reach its goals effectively and efficiently.

 To guide for job changes with the organization with the help of continuous
ranking.

 Taking the performance appraisal into account, the management decides the
training and development programs and self management development
programs

4
 OBJECTIVES OF THE STUDY

1. To study the present Performance Appraisal system in DASPALLA HOTEL.

2. To evaluate the Employee's Response on Performance Appraisal System.

3. To review the organizational practices regarding performance appraisal

system.

4. It provides information for taking decisions relating to layoffs, retrenchment,

etc.

5. To create and maintain satisfactory level of performance.

6. To guide for job changes with the organization with the help of continuous
ranking.

7. This study is conformed to the Executive‟s performance appraisal systems in

DASPALLA HOTEL in Visakhapatnam.

8. It contributes to the employee growth and development through self and

management development programs.

9. It provides information for taking decisions relating to layoffs, retrenchment,

etc.

10. To create and maintain satisfactory level of performance.

5
 METHODOLOGY OF THE STUDY

It describes the method of achieving objectives, through collection of

data. The collection of data is divided or classified in two types: They are:

1. Primary data

2. Secondary data

Primary data:

Are those, which are collected for first time and are thus original in
character. The primary data may be collected by direct personal investigation
indirect oral investigation, by local reports by schedules and questionnaires.

Secondary data:

Are those which have been already collected and analyzed by some one
else, and as such the problems associated with the original collection of data do
not arise here secondary data may be either published or unpublished.

 A survey was conducted in the company.

 Then a questionnaire is prepared to known the effectiveness of

performance appraisal system.

 The collected data is analyzed.

 Finally basing on the findings suggestions are made.

6
 LIMITATIONS OF THE STUDY

 The time aspect for doing project is very limited.

 Employees are not clearly understood the objectives of performance appraisal

system.
 It lacks standard procedure of communication level of performance Duplication
efforts
 Questionnaire is used as the primary tool of the study, so views expressed by the
respondents were confined to the elements of questionnaire.
 Biased view of respondents may influence the validity of the information.
 Heavy reliance is placed on the respondents‟ information, which cannot be
verified.

7
CHAPTER-II

8
 INDUSRIAL PROFILE

Hotel industry has been playing an important role in the economic development
of various countries. Almost all the developed countries and a majority of
developing countries emerged as service economies. USA was the first economy
to become a service economy. The basics intermediate demand for the
development of the service sector are growth in intermediate demand from
various manufacturing organizations which are in the process of unbundling and
direct demand from customers. Service sector has been given important place in
the Indian planning since the sixth five-year plan. The service sector contribution
to the GDP of India rose from 28.6% to 45.19%in 1998-99. However the
statistics do not reveal the true picture as the hidden service sector and services in
the unorganized sector are not added to the total. There is a tremendous potential
for the growth of service in the country. The major services in the country are
Transport and Communication. Trade, Hotels, Restaurants, community, social
and personal services and Finance and real estate services.

Service industry has shown a tremendous growth in India. In recent years

according to government estimates services industry is growing to overtake the
agriculture in Indian economy. Apart from providing most jobs and benefits it is
a major source for earning foreign exchange in India. Service sector accounts for
maximum employment and major contribution to GNP of every economy in the
World. Out of these contributions of service sector Health services provide the
maximum employment. The travel and tourism industry is the largest industry
besides automobiles and food accounting for more than 10% of the world gross
national product. The service industry is constantly changing and developing to
meet the needs of the customer in the market. The food services industry is
entering the 21st century in a state of Flux.

9
HOTEL - THE CONCEPT:

Initially the term hotel was meant for local motorists and foreign tourists
traveling by road. Basically hotels serve the needs and requirements of these
travelers and meeting the demand for transit accommodation. We can also call
hotel over night stay. Some of the important services offered by hotels are
parking, garage facilities, accommodation, and restaurant facilities. Hotels are
found equipped with filling stations, accessories, service of elevator to the
automobile entrance restaurant etc., Hotel are found located outside the city. The
accommodation available in the hotel is more in the category of a 'chalet facility'.
This has a dinning hall with fixed menu. In USA the hotel accommodation is
ranked at par with hotel accommodation.

TYPES OF HOTELS:

Residential Hotel:

The residential hotel work as an apartment house. we often call them as

apartment hotels. The hotels charges rent on monthly, half- yearly or yearly
basis. The hotels are generally found located in big cities and towns where no
meals are served to the customers. Initially, the residential hotels were developed
in USA. The services offered in the residential hotels are comparable to an
average well managed home.

Commercial Hotel:

The commercial hotels are meant for the people who visit a place a trade
and commerce or business purposes and therefore these hotels are found located
at the commercial or industrial center. These hotels focus their attention on
individual travelers and are generally run by the owners.

10
Resort Hotel:

The resort hotels are meant for the holiday's makes, tourists and for those
who need a change in the atmosphere mainly on healthy ground. These hotels are
found located near the sea, mountain, and other areas having an attractive
landscape and healthy climatic condition. The tourist visit hotels mainly for
relax. The entertainment ad recreation facilities like swimming pool, tennis
courts, boating, golf-court, self-riding, and other indoor sports n addition to
restaurant and cafeteria, conference room, lounge, shopping arcade,
entertainment etc., become significant in the resort hotels.

International Hotel:

The international hotels are modern luxurious hotels, classified on the

basis of international guidelines. These hotels are placed in various star
categories, e.g., Five-star-deluxe, Five-star, Three-star, Two-star, and One-star.
The international hotels are mostly owned by the public companies where hoard
of director s is constituted for its control. The overall management in found in the
hands of senior executives.

Floating Hotel:

The floating hotels are located on the water surface. The places are sea,
river, and lakes. These hotels provide all the facilities and services made
available in a good hotel. In the leading tourist generating countries of the world
we find the practice of using old luxury ships as floating hotels.

GROWTH OF HOTEL INDUSTRY:

The real boom in the hotel industry came in the 20 th century. The new
hotel area was first dominated by the Oberoi Group, Taj, and ITC - Welcome
Group, ITDC and other large luxurious groups of hotels. Asian hotels are the
other groups which have made a mark for them. Many groups are entering the
hotel business. Apart from these chains which are mainly owned (with exception
of ITDC which is a government of India undertaking), the State tourism

11
corporation to have come into the hotel business in order to cater to the growing
tourists and the business traffic.

Through the large chains have made their debut, the hotel keeping in
India still has a strong individualistic style since three fourths of the hotels all
over the country are in the hands of small operators. Changing market
perceptions have forced even the major groups to diversify into smaller budget
hotels a competition has thus increased in the industry.

With the growth of tourism in India, the hotels in the holiday and
availability of modern technological gadgets and the future holds promise for a
further mushrooming of modern hotels.

The Popular Groups of Hotels in India are listed below:

 Oberoi Group

 Taj Group

 ITC's Welcome Group

 ITDC's Ashok Group

 Mahindra Group

 Apeejay Group

 Amrita Group

 Leela Kempenski Holiday Inns

 Centaur Hotels

 Asian Hotels
New Hotels Entering India:
 Hilton International
 Radisson International
 Best Western
 Accor Asia Pacific
 Southern Pacific Hotels

12
  Holiday Inns
 Leela Venture
 Grand Hyatt
 Sterling Holiday Resorts
 Park Group

BEST WESTERN'HOTELS:

World's largest hotel chain comprises 4100 hotels across countries is

being represented in India access worldwide as the exclusive general sales agent.
The hotel chain with a strong back up in the US and the growing awareness in
Europe is slowly gaining ground in the Middle East and Australia. With 16
hotels in India alone, the chain is all set to establish them as a prominent chain in
league with the Holiday Inn and on the lines. The best advantage Best Western
has is their being a budget Hotel chain is the demand of the hour.

The western hotels in an exclusive tie-up have launched a special

promotion with Amadeus to promote and sell Best Western Hotels world wide.
The incentives to the people handling the systems range from a pen to a free
holiday abroad. The promotion comes at a very critical time when the seaso n
from India is dying out and the travel agents are less engulfed with queries and
have more time to think and plan.

A humble beginning was made in 1946, when Guertin founded Best

Western Hotels an hotelier with 23 years of experience in the business. The chain
began as an informal link between properties with each hotel recommending
other lodging establishments to travelers. This "referral system" consists of
phone calls from one front desk operator to another. In 1948 five million copies
of the BMW guide were published. Today it is with world's best rated online
reservation system and a host of toll free lines at free numerous locations world
wide.

13
SAVOY:

The hotel was started in 1889 by a whiz kid impresario called Richard D'
Oyiy Cartr. At the age of 29 he had found his pot of gold by commissioning
Gilbert and Sullivan to write Trail by Jury which was followed by other smash
hits.

At the age of 39 the dreams of building the world's most perfect hotel and
backed by the glitziest novae riche angels. Lord Chamberlin and occasionally
they he opened the Savoy, the flashiest and the most reputed hotel in the world.
But still, respected society was not impressed. What was needed was a star, a big
one. Roping in Cesar Ritz, a young Hotelier with an enormous following to turn
the show and chief Augusto Escopffer, D'Oyl carte made hotel the hottest ticket
in town.

According to the largest figures, hotels and other tourism related

industries directly employed over 5.3 million people in the country. It is
estimated that at least another 13 million people were indirectly employed by the
tourism sector.

SPACE HOTEL:

Within the next three decades those seeking out of this world vacation
thrills will be able to check into space hotel. The Japanese firm Shimuzu
Corporation has created a dedicated space research department to work out this
project.

The space hotel scheduled to open in 2020 will be built around a central
240 meters cylinder. It will have 64 rooms arranged in the form of a doughnut,
40 meters in diameter. It will orbit the earth at height of 450 kms and rotate on its
axis at a rate of three times a minute to create artificial gravity close to the earth.

The Windsor in Melbourne an Oberoi hotel has been awarded by the

Australian Hotel Association for "Top Hotel Accommodation" and "Best
Restaurant" the selection criteria of which were standards of service and food,
staff training and the provision of special feature in the building.
14
"REVIVAL HOTEL", BARODA WINS FHRAI AWARD:

The Barot groups Revival Hotel in Baroda has won the prestigious
federation of Hotel & Restaurant Association India's Environmental Friendly of
the year award, in the second position. The property a boutique hotel has been
among the first in the hospitality industry to accord great significance to the
concern for ecology. The award will be presented to revival at the FHRAI
convention held in Mumbai. The hotel's Kamles Brot says "It is the first time that
a professional body like the FHRAI, besides the tourism department,
Government of India is giving an award on Environment; We humbly and
gracefully accept it".

MEGA CONVENTION CENTER PLANNED FOR CHENNAI:

The state government is planning to build a world-class Convention

Center on a 500-acre expense between Chennai and Mammallapuram.

According to the policy note demands for grant presented in the assembly
by the tourism room Five Star Hotel, mini conference hall, a shopping arcade an
ethnic village and a Handicrafts Emporium, children's park, Textile museum,
Swimming pool, Bar, Theater, modern communication links, car parking area, an
exhibition mansion, and art gallery etc.

THE NEW 'PARK HOTEL:

In the heart of the capitals business, government and tourist centers across
the street from the Jantar Mantra a hop skip away from Cannaught place just
down the road from the Parliament the Park Hotel has opened business.

The property has all the amenities of a deluxe hotel 24 hours a coffee
shop, especially restaurants and bars, landscaped gardens and swimming pool. It
also has an Exclusive conference and banquet facilities and fully equipped
business center. It is third link in the part chain after Calcutta and
Visakhapatnam.

15
101 st "MERIDEN" OPENS IN PUNE:

Le Meriden Hotels and resorts recently opened its 101 st property world
wide at pune. Designed by architect Hafeez contractor in the royal Indian style
the Le Meriden is pune's only five star deluxe hotels and has 177 rooms with
facilities that include interactive television. The hotels convention center sprawls
over 6000 square feet and can accommodate up to 1200 delegates.

16
 COMPANY PROFILE

"QUALITY INN": INDIA'S NEWEST HOTEL CHAIN:

Enter Quality Inn India's Newest Hotel Group. It is the result of the joint
venture between A.K. Dave & Associates and Quality International the world's
largest hotel chain. The tie up is because this is the first time moderately priced
hotels will be franchised by an international chain. The commitment of the
foreign collaborates include equity stake in the venture, a strong reputation on
the board and will spend a good pat of their fees on promotion activities with in
India itself. Quality Inns India begins with two operating hotels at Mysore and
Ooty and other projects are under way a Hyderabad, Banglore, Ahmedabad and
Delhi.

WELCOME GROUP'S HOTEL IN VISAKHAPATNAM:

Welcome Group's Grand Bay, a 100-rooms property is open for business

in Visakhapatnam. The hotel offers deluxe and executive clubrooms with tariffs
ranging from Rs.1800 to 4200 and deluxe suites. It is being marketed as a tourist-
cum-business address.

"HOTEL DASPALLA" IN VISAKHAPATNAM:

The Tourism department has awarded Hotel Daspalla as the best hotel for
the services it has provided to the tourists. It has gained second position in
Andhra Pradesh. Hotel Daspalla has recently been added to Quality Inn chain of
hotels in India.

17
HISTORY AND BACKGROUND

Daspalla Hotel Visakhapatnam:

Hotel Daspalla is a 3 Star hotel located in the heart of the business

district. The hotel has 126 well furnished rooms and Suites. It has a choice of
restaurants and a wide variety of banquet halls. The hotel is located 12 kms from
the airport and 2 kms from the railway.

Facilities:

This group of hotels has been in the hospitality industry for many years
and Daspalla, their flagship hotel, with all the latest facilities for business as well
as pleasure, will make one's stay a memorable one. This hotel caters totally to all
the needs of the guests and ensures his / her total satisfaction. Some of the
facilities available are:

 Business Centre

 Central air-conditioned

 24-hr room service

 Currency exchange

18
  Direct dialing Local / S.T.D,

 Fax

 Safe Deposit Lockers

 Internet

 In-house laundry

 Multi-cuisine Restaurant with attached Bar

 Two Vegetarian Restaurants

 Speciality Andhra Non-Vegetarian Restaurant

 Shopping arcade

 Sweet Shop

 Florist

 Airport pick-up

 Travel desk

 Doctor on call

 Extensive 2 tier Parking Space for 2 & 4 wheelers

 Convenience Store

 Exclusive accommodation for drivers

Restaurants:

 DHARANI:

The very popular 150 cover vegetarian restaurant DHARANI, serves

north and south Indian breakfast, snacks and thalis.

DHARANI is open from 6.30 a.m. until 11.00 P.M

 VAISAKHI:

This exclusive 60 cover restaurant specializes in north and south Indian

19
vegetarian thalis. Open for lunch & dinner.

 DAKSHIN:

Traditional 110 cover multi cuisine restaurant. Serves South Indian Non-
veg buffet. Open for lunch & dinner.

 DIMPLE - Bar & Restaurant:

160 cover Multi cuisine restaurant with a well-stocked bar. Serves Indian,
Moghlai, Continental and Chinese cuisine. Lunch Buffet every day. Open for
Lunch & Dinner.

HONEY DEW - The sweet shop:

A wide variety of excellent sweets and savories including traditional

Andhra and popular Indian preparations are available. Bulk orders are accepted
for Weddings, Marriage Receptions, Marriage Saari, Festivals and Religious
Functions. Special Gift Packs and Customized Corporate Gift Hampers are also
available for New Year, Diwali etc.

Banquets Facilities:

 BOARD ROOM:

It is provided wit latest state-of-the-art facilities to cater to your

company's needs. The Business Centre has a board room style conference hall
with sitting capacity of 10-12 persons ideal for conducting interviews; board
Meeting, Press Meet etc., and Internet, Photocopying, Laser Printer, Telephone
& Fax Facilities.

 SAMSKRUTI:

An exclusive Party suite - ideal for private and special gatherings.

Samskruti comes attached with a spacious, open to the sky, private balcony.

 AMATYA:

A well-equipped boardroom which can accommodate up to 45 persons. It

20
is tastefully designed to suit the demands of the corporate world.

 MAITRI:

Aesthetically designed and pleasing to the eye, Maitri is a hall best suited
for hosting small or private parties up to 60 persons.

It is ideal for hosting functions from 40 to 60 persons.

 TRIVENI – SANGAMAM:

Conference hall with a partition can accommodate 100 each or 200

persons and without the partition it will Suitable for exhibitions and sales.

 NIVEDIKA:

Nivedika is a multi-purpose function hall with a soothing decor. 75-100

guests can be accommodated here.

 VEDIKA:

This is a spacious banquet hall with an excellent ambience. It can

accommodate 300-500 guests comfortably and is specially designed for
weddings / wedding receptions, conferences and large gatherings.

 DARSHINI:

A spacious banquet hall with a good view of the city. This can
comfortably seat 400-500 guests and is most ideal for get-togethers and official
parties.

 SANDARSHINI:

A large rooftop terrace garden that is suitable for open-air gatherings. It

can accommodate 400 to 500 persons.

Note: There is the option of combining Darshini and Sandarshini - this is

21
 suitable for marriages or gatherings where a large number of
guests are expected - 800 or more.

 SPANDANA (Open Air):

The open-air marriage hall (kalyanamandapam) can be tastefully

decorated as per the host's choice. It can accommodate up to a 800 guests
comfortably and has become an all-time favorite with Vizag it is since its
inception.

HEALTH CLUB:

Fully Equipped Multi Gym with Runner, Abdomen Cruncher, Weight,

Weight Lifting Accessories, Fully air-conditioned city view health club.

Accommodation:

A classic elegance greets you from the lobby right up to the luxurious
rooms and suites. This is the most centrally located hotel in the city. All the
rooms are well furnished and comfortable and have been designed keeping the
safety of the guest in mind, without compromising on the aesthetic appeal.

125 well - appointed Rooms, which include 38 Standard Rooms, 07

Standard Deluxe Rooms, 43 Superior Rooms, 04 Superior Deluxe, 19 e -Club
Deluxe Rooms, 09 Suites & 01 Presidential Suite.

Exclusive Facilities for e-Club:

(Beside may other facilities which are common for all rooms).

Broadband Internet Connectivity, Electronic Door Locking System,

Electronic Safe-Locker, Bath cubicles, Remote Control Electrical Switches,
Healthcare products in Bathroom, Mini-bar, Fruit Hamper, Tea/ Coffee Maker
are exclusively available in only e-Club rooms.

Daspalla Executive Court Visakhapatnam:

22
 Daspalla Executive Court is a 3 Star property with 46 elegantly furnished
rooms & suites.

Daspalla Executive Court is conveniently located on Waltair Main Road,

minutes away from the business district and corporate offices.

Location:

It is 11 KJHS from the airport and 2 kms from the railway station. Vizag's
famous beach is less than 2 kms away from the hotel.

Facilities:

 Business Centre
 Centrally air-conditioned
 24-hr room service
 Currency exchange
 Direct dialing Local / S.T.D / Voice-mail
 Fax
 Safe Deposit Lockers
 Internet
 Laundry
 Multi-cuisine Restaurant with attached Bar
 Coffee Shop
 Airport pickup
 Travel desk
 Doctor on call

23
  Fitness Centre
 Convenience Store

Restaurant:
 Any Time:
An exclusive "Coffee Shop" that serves South & North Indian executive
thalis, veg and non-veg, Chinese, Continental and Indian fare.
Open from 6.00 a.m. to 3.00 a.m.
 Royal Palate:
Multi-cuisine restaurant bar with 74 cover - serves buffet breakfast and an
extensive choice from Indian, Tandoori, and Chinese and Continental cuisines
for lunch & dinner.
Banquets Facilities:
 Lazarus:
Named after “Lazarus Bungalow” where the Executive hotel stands today,
this 1200 sft. Hall can accommodate up to 150 guests. A well-equipped place
with all modern amenities. It is suitable for meetings, birthday parties, wedding
receptions etc.
 Sree:
Sree is a tastefully designed 600 sft. Mini conference hall with all facilities.
Can accommodate 50 guests. Ideal for board meetings / workshops / seminars
and small gatherings.
Accommodation:
The accommodation is aesthetically designed and tastefully decorated
with 3 elegant suites, 3 well-furnished economy suites, and 40 well-furnished
rooms.

24
CHAPTER-III

25
 THEORETICAL FRAME WORK OF THE STUDY

Performance appraisal is essential to understand and improve the employee‟s

performance through HRD. In fact, performance appraisal is the basis of HRD. It
was viewed that performance appraisal was useful to decide upon employee
promotion, transfer, salary determination and the like. But the recent developments
in Human Resource management indicate that performance appraisal is the basis for
employee development. Performance appraisal indicates the level of desired
performance level, level of actual performance and the gap between these two. This
gap should be bridged through human resources development techniques like
training, executive development etc. Modern performance appraisal techniques are
suitable for growth strategy like expansion, diversification, joint neuters, mergers,
and acquisitions. These strategy help the company to meet competition, build
completeness acquire strength, enhance market share, innovate and create new
markets, new products, and new technologies. Performance appraisal by the
customers sub ordinates and press in addition to the superiors, help the employees to
have a feedback from multiple directions, identify their deficiencies and acquire
competencies through training and development. In addition, the modern techniques
of performance appraisal and 360 performance appraisal enhance employee.
Creativity which in turn contribute for the achievement of strategies like new
product development, low cost leadership and differentiation strategies. Traditional
performance appraisal techniques and appraisal by superiors are suitable for
refreshment strategies like turnaround, disinvestments and liquidation strategies
presented below. Performance appraisal is a method of evaluation the behavior of
employee in the work spot, normally including both the quantitative and qualitative
aspects of job performance here refers to the degrees of accomplishment of the tasks
that make an individual‟s job. It indicates how well as individual is fulfilling the
demands. Often the term always measured in terms of results and not efforts. A
student for example may accept a great deal of effort while preparing for two
examinations but may manage to get a poor grade. In this case, the effort expanded
in high but performance is low. In order to find out whether an employee is worthy

26
of continued employment or not, and if so, whether he should receive a bonus , a pay
rise or promotion, his performance needs to be evaluated from time to time. When
properly conducted performance appraisal not only let the employee know how well
he is performing and should also influence the employees future level of effort,
activities, results tasks, direction.
DEFINITION:
Performance evaluation or performance appraisal is the process of assessing the
performance and progress of an employee or a group of employees on a given job
and is potential for future development.
STRATEGIES PERFORMANCE APPRAISER
APPRAISAL
Stability & Sustainable Traditional Superior
Growth
Expansion, Diversification Modern 360 Appraisal
M&A
Retrenchment Traditional Superior
Low cost Leadership new Modern 360 Appraisal
product differentiation

FORMAL DEFINITION:
“It is the systematic evaluation of the individual with respect to his /her performance
on the job and his/ her potential for development”
“Performance Appraisal is the systematic, periodical and an impartial rating of
an employee’s excellence in matters pertaining to his present job and his
potential for a better job”

- Edwin B.
Flippo.
WHO WILL APPRAISE:

SUPERVISORS:
Supervisors include superiors of the employee. Other supervisors having
knowledge about the work of the employee and department need or manager.

27
General practice is that immediate superiors appraise the performance which
in turn is reviewed by the departmental head/ manager. This is because
supervisors are responsible for managing their subordinates and they have the
opportunity to observe, direct and control the subordinate continuously. More
ever they are accountable for the successful performance of their subordinates.
Sometimes other supervisors, who have close contact with employee work also
appraise with a view to provide additional information.
On the negative side, immediate supervisors may emphasize certain aspects of
employee performance to the neglect of others. Also managers, have been
known to manipulate evaluation to justify their decisional on pay increases and
promotions. However the immediate superior will continue to evaluate
employee performance till a better alternative is available. Organizations, no
doubt will seek alternatives because of the weakness mentioned above and a
desire to broaden the perceptive of the appraisal. Peer appraisal may be
reliable if the work group is stable over a reasonably long period of time and
perform tasks that require interaction. However, little research has been
conducted to determine how peers. Establish standards for evaluating others or
the overall effort of peer appraisal on the group’s attitude. Whatever research
was done on this topic was mostly done on military personnel at the
management or pre management level rather than on employees in business
organizations. More often than not in business organizations if employees were
to be evaluated by their peers, the whole exercise may emulate into a popularity
contest, paving the way for the improvement of work relationship.
The concept of having superiors rated by subordinates is being used in most
organizations today, especially in developed countries. Such a novel method can
be useful in the organizational settings too provided the relationships between
superiors and subordinates all cordial. Subordinates ratings in such cases can
be quite useful in identifying competent superiors. The rating of leaders by
compact soldiers is an example. However, the fear of reprisal often compels a
subordinate to be dishonest in his ratings. Though useful in universities and
research institutions, this approach may not gain acceptance in traditional
organizations where subordinates practically do not enjoy much discretion.

28
SELF-APPRAISAL:
If individuals understand the objectives that they are expected to achieve and
the standards by which they all to be evaluated they are to a great extent in the
best position to appraise their own performance also, since employee
development means self development, employee who appraise their own
performance may became highly motivated.
USERS OF SERVICES, CUSTOMER:

Employee performance in service organizations relating to

behavior,promptness, speed in doing the job and accuracy can be better judged
by the customers or users of services. For example, student’s better judge
teachers programmed and the passengers better judge the performance of a
conductor in passenger road transport.
CONSULTANTS:

Sometimes consultants may be engaged for appraisal when employee or

employer do not trust supervisor appraisal and management does not trust the
self appraisal as peer appraised or subordinate appraised. In this situation,
consultants are trained and they observe the employee at work for sufficiently
long time for the purpose of appraised.
In view of the limitations associated with each and every method discussed
above, several organizations follow multiple rating systems where in several
separately superiors fill out rating forms on the same subordinates. The results
are then tabulated.
WHEN TO APPOINT:
Informed appraisal is conducted whenever the supervisor or personnel
manager feel it necessary. However, systematic appraises are conducted on a
regular basis, say for example every six months or annually.
TEAM APPRAISAL:
Organizations have started developing team appraisals to evaluate the
performance of a team as a whole instead of appraising performance of
individual employees. This development is due to the fact; organizations are
assigning the work to teams rather than individuals. Appraising individual

29
performance is almost impossible in a team setup. Companies like mind free,
Dr. Reddy’s lab, Infosys, Boeing, Texas Instruments, Jostens and Ralston foods
use item appraisal.
Companies following total quality management principles do also follow them
appraisal as TQM sets standards, measures performance against thos e
standards and identifiers opportunities for continuous improvement. TQM sets
for the team assignment of the work rather than individual assignment.
Therefore, TQM and team appraised go together. Thus almost all the
companies following TQM principles, also follow teem appraisal.
NEED FOR PERFORMANCE APPRAISAL:

Performance appraisal needed in order to

 Provide information about the performance ranks basing on which division
regarding salary fixation, confirmation, promotion, transfer and demotion are
taken.
 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 get 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 developmental needs and to prescribe the
means for employee growth provide information for corrupting placement.
 To prevent grievances and in disciplinary activities.
OBJECTIVES OF PERFORMANCE APPRAISAL:
Performance appraisal could be taken either for evaluating the performance of
employees or for developing them. Appraisal of employees serves several useful
purposes:
COMPENSATION DECISIONS:
Managers need performance appraisal to identify employees who are performing at
or above expected levels. This approach to compensation is at the heart of the idea
that raises should be given for merit rather than for seniority.
PROMOTION DECISIONS:
30
It can serve as a useful basis for job change or promotion. When merit is the basis
for reward, the person doing the best job receives the promotion.
TRAINING AND DEVELOPMENT PROGRAMMES:
It can serve as a guide for formulating a suitable training and development
programmer. Performance appraisal can inform employees about their progress and
tell them what skills they need to develop to become eligible for pay raises or
promotions or both.
FEEDBACK:
Performance appraisal enables the employee to know how well he/she is doing on
job. It tells him what he can do to improve his present performance and go up the
“organizational ladder”
PERSONAL DEVELOPMENT:

Performance appraisal can help to reveal the cause of good and poor employee
performance. Through discussions with individual employees, a line manager can
find out why they perform as they do and what steps can be initiated to improve
their performance.
METHODS OF PERFORMANCE APPRAISAL:
With the evaluation of development of appraisal system, a number of methods or
techniques of performance appraisal have been developed. The impotent among
them are divided into two types.
The performance appraisal is divided into two types
I. TRADITIONAL METHODS
II. MODERN METHODS.
I. TRADITIONAL METHODS ARE GIVEN BELOW
1. Graphic rating scales.
2. Ranking method
3. Paired comparison method.
4. Forced distribution method.
5. Checklist method.
 Simple checklist method.
 Weighted checklist method.
 Critical incident method.

31
 6. Essay or free form appraisal.
7. Group appraisal.
8. Confidential report.
II.MODERN METHODS ARE GIVEN BELOW
1. Behaviorally Anchored Rating scale (BARS)
2. Assessment centre.
3. Human Resource Accounting.
4. Management By Objectives (MBO)
5. Psychological Appraisal.

TRADITIONAL METHODS:

1. Graphic rating scales:

Graphic rating scales compare individual performance to an absolute standard. In
this method, judgments about performance are recorded on a scale. This is the oldest
and widely used technique. This method also known as linear rating scale or simple
rating scale. The appraisers are supplied with printed forms, one for each employee.
These forms contained a number of objectives, behavior and trait based qualities and
characters to be rated like quality and volume of work, job knowledge, depend
ability, initiative, attitude etc. in this case of workers and analytical ability, creative
ability, initiative, leadership qualities, emotional stability in the case of managerial
personnel. These forms contain rating of scale.
Rating scales are of two types, viz., continues rating scale and discontinues rating
scales. In continues order like 0, 1, 2, 3, 4 and 5 and in discontinues scale the
appraiser assigns the point to each degree. The points given by the rater know
performance regarding each character. The points given by the rater to each
character are added up to find out the overall performance. Employees are ranked on
the bases of total points assigned to each one of them.
One reason for the popularity of the rating scale is its simplicity, which permits
many employees to be quickly evaluated. Such scales have relatively low design
cost and high in case of administration. They can easily pin point significant
dimensions of the job. The major drawback to these scales is their subjectivity and

32
low reliability. Another limitation is that the descriptive words often used in such
scales may have different meanings to different raters.
2. Ranking methods:
Under this method the employees are ranked from best two worst on some
characteristics. The rater first finds the employee with the highest performance and
the employees with the lowest performance in that particular job category and rates
the former as the best and the later as the poorest. Then the rater selects the next
highest and the lowest and so on until he rates all the employees in that group.
Ranking can be relatively easy and in expensive, but its reliability and validity may
be open to doubt. It may be affected by rater bias or varying performance standards.
Ranking also means that some body would always e in the backbench. It is possible
that the low ranker individual in one group may turn out to be superstar in another
group. One important limitations of the ranking method is that the size of the
difference between individual is not well defined. For instance, there may be little
difference between those ranked third and fourth.
3.Paired comparison method:
This method is relatively simple. Under this method, the appraiser ranks the
employee by comparing one employee with all other employees in the group, one at
a time. As illustrated this method results in each employee being given a positive
comparison total and a certain percentage of the total positive evaluation.
4. Forced distribution method:
The rater may rate his employee at the higher or at lower end of the scale under the
earlier methods. Forced distribution method is developed to prevent the raters from
rating too high or too low. Under this method the rater after assigning the points to
the performance e of each employee has to distribute his rating in the pattern to
conform to normal frequency distribution. Thus similar to the ranker technique,
forced distribution requires the raters (supervisors) to spread their employee
evaluation in a prescribed distribution. This method eliminates central tendency and
leniency biases. However, in this method employees are placed in certain ranked
categories but not ranked within the categories. Quite often work groups do not
reflect a normal distribution of individual performance. This method is based on the
questionable assumption, as group of employees will have the same distribution of

33
excellent, average and poor performers. If one department has all outstanding
employees, the supervisor would find it extremely difficult to decide who should be
placed in the lower categories. Difficulties are can also arise when the rater must
explain to the employee why he was placed in one grouping and others were placed
in higher grouping.
5.Check list method:
The check list is simple rating technique in which the supervisor is given a list of
statement are words and asked to check statements representing the characteristics
and performance of each employee. There are three types of checklist methods, viz.,
simple checklist, weighted checklist and forced choice method.
A) Simple check list method:
The checklist consists of large number of statements concerning employee behavior:
PERFORMANCE APPRAISAL FORM
Name of the employe : Number:
Designation : Department:
Checklist of qualities: Behavior:
1. Is the employee punctual in attending the office?
Yes/No
2. Does the employee behave courteously with his supervisors?
Yes/No
3. Does the employee maintain sound customer relations?
Yes/No
4. Is the employee sincere in doing job?
Yes/no
5. Does the employee behave well with the public outside the Organization?
Yes/no The rater checklist is to indicate if the behavior of an employee is
positive or negative to each statement. Employee performance is rated on the basis
of number of positive checks. The negative checks are not considered in this
method. A difficulty often arises because the statements may appear to be virtually
identical in describing the employee. The words or statements may have different
meaning to different raters.
B) Weighted checklist:

34
The weighted checklist method involves weighting different items in the checklist
having a series of statements about an individual, to indicate that some are more
important than others. The rater is expected to look in to the questions relating to the
employee‟s behavior, the attached rating scale (or simply positive/negative
statements where such a scale is not provide) and tick those traits that closely
describe the employee behavior. Often the weights are not given to the supervisors
who complete the appraiser process but are computed and tabulated by someone else
such as a member of personal unit. In this method the performance ratings of the
employee are multiplied by the weights of the statements and co-efficient are added
up. The cumulative co-efficient is the weighted performance score of the employee.
Weighted performance score is compared with the overall assessment standards in
order find out the overall performance of the employee.
The weighted checklist however is expensive to design since checklist for each
different job in the organization must be produced. This may prove time consuming
also in the end. Though weighted check list method is evaluative as well as
developmental, it has the basic problem of the evaluator not knowing the items,
which contribute mostly of successful performance.

C) Forced choice method:

This method was developed at the close of World War II. Under this method, a large
number of statements in groups are prepared. Each group consists of four descriptive
statements (tetrad) concerning employee behavior. Two statements are most
descriptive (favorable) and two are least descriptive (UN - favorable) of each tetrad.
Sometimes there may be five statements in each group out of which one would be
neutral. The actual weight ages of the statements are kept secret. The appraiser is
asked select one statement that mostly describes employee‟s behavior out of the two
favorable statements and one statement from the two unfavorable statements. The
items are usually a mixture of positive and negative statements. The intent is to
eliminate or greatly reduce the rater‟s personal bias, specially the tendency to assign
all high or low ratings. The items are designed to discriminate effective workers as
well as reflect valuable personal qualities.
Critical Incident Method:

35
Employees are rated discontinuously that is once in a year or six months under the
earlier method. The performance rated may not reflect real and overall performance,
as the rater would be series about appraisal just two or three weeks before the
appraisal. Hence continues appraisal method, i.e., critical incident method has been
developed. Under this method, the supervisors continuously record the critical
incidents of the employee performance or behavior relating to all characteristics
(both positive and negative). In a specially designed notebook. The supervisor rates
the performance of his subordinates on the basis of notes taken by him. Since the
critical incident method does not necessarily have to be a separate rating system, it
can be fruit fully employed as documentation of the reason why the employee was
rated in certain way. The critical incident method has the advantage of being
objective because the rater considers the records of performance rather than the
subjective points of opinion.

6. Essay or free form appraisal:

This method requires the manager to Wright a short essay describing each emloyee‟s
performance during the rating period. This format emphasizes evaluation of overall
performance, based on strengths and weaknesses of employee performance, rather
than specific job dimensions. By ask him supervisors to enumerate specific
examples of employee behavior; the essay technique minimizes supervisory bias and
halo effect.
7. Group appraisal:
Under this method, an employee is appraised by a group of appraisers. This group
consists of the immediate supervisor of the employee, to other supervisors who have
close contact with the employee‟s work, manager or head of the department and
consultant. The head of the department or manager may be the chairman of the
group and the immediate supervisor may act as the co- coordinator of the group
activities. This group uses any one or multiple techniques discussed earlier. The
immediate supervisor enlightens other member about the job characters, demands,
standards of performance etc. the n the group appraises the performance of the
employee, compares the actual performance with the standards, find out the
deviations, discusses the reasons there for, suggest the ways for improvement of

36
performance, prepares action plans, studies the need for change in the job analysis
and standards and recommend change, if necessary. This method is widely used for
purpose of promotion, demotion and retrenchment appraisal.
8. Confidential reports:
Assessing the employee’s performance confidentially is traditional method of
performance appraisal. Under this method, superior appraises the performance
of his sub-ordinates based on the observations, judgments and institutions. The
superior keeps his judgment and reports confidentially. In other words the
superior does not allowed the employee to know the report and his
performance. The superior wrights the report about his sub-ordinate’s
strengths, weaknesses, intelligence, attitude to work, sincerity, commitment,
punctuality, attendance, conduct, character, friendliness, etc.
Though confidential report is traditional method, most of the public sector
organizations still follow this method in appraising the employee’s
performance. This method suffers from a number of limitations.
II. MODERN METHODS
1. Behaviorally Anchored Rating Scales (BARS)
The behaviorally anchored rating scales (BARS) method combines elements of the
traditional rating scale and critical incidents methods. Using BARS, job behaviors
from critical incidents – effective and ineffective behavior are described more
objectively. The method employs individual who are familiar with a particular job to
identify its major components. They then rank and validate specific behaviors for
each of the components.
BARS require considerable employee participation; its acceptance by both
supervisors and their subordinates may be grater. Proponents of BARS also claim
that such a system differentiates among behavior, performance and results, and
consequently is able to provide a basis for setting developmental goals for the
employee. Because job – specific and identifies observable and measurable
behavior, it is more reliable and valid method for performance appraiser.
2. Assessment centre
This method of appraising was first applied in German army in 1930. Later business
and industrial houses started using this method. This is not a technique of

37
performance appraisal by itself. In fact it is a system or organization, were
assessment is done by several individuals and also by various experts by using
various techniques.
In this approach individual from various departments are brought together to
spend two or three days working on an individual or a group assignment
similar to the ones they would be handling when promoted. All assesses get an
equal opportunity to show their talent and capabilities and secure promotion
based on merit. An assessment model is shown be
ASSESSMENT CENTRE:

ESTABLISH
DEVELOP
GOALS FOR
POLICIES FOR
PROGRAMME FEEDING
BACKDATA
DESIGN
OBTAIN TOP PHYSICAL CONDUCT
MANAGEMENT FACILITIES PROGRAMM
COMMITMENT SELECT E
DO OBTAIN JOB EXERCISES
AND
ANALISIS PARTICIPANTS

DEFINE DESIGN TRAIN

ASSESSOR
DIMENSION TO TRAING
ASSESSOR
BE ASSESSED PROGRAMME S
PROVIDE
FEEDBACK

EVALUATE
PARTICIPANTS AND
CENTRE AGAINST
JOB SUCCESS
3. Human Resources Accounting CRITERIA

Human resource accounting deals with cost of and contribution of human resources
to the organization. Cost of the employee includes cost of the man power and
planning, recruitment, selection, induction, placement, training, development, wages
and benefits etc. employees contribution is the money value of the employee service
which can be measured by Labour productivity or value added by human resources.
4. Management By Objectives (MBO)
Although the concept of management by objectives was advanced by PETER
F.DRUCKER way back in 1954, it was described only recently as “Large range” in
performance appraisal. Refinements brought out by George Odeon, valentine,

38
humble and others have enriched the concept and made it more acceptable all over
the globe as an MBO in their work settings. Some of the companies which
implemented MBO reported excellent results, others disappointments and many in
decisions.
Started briefly, MBO is a process were by the superiors and subordinates managers
of an organization jointly identified its common goals, define each individuals major
areas of responsibility in terms of results expected of him, and use these measures of
guides for operating the unit and assessing the contribution of its members.
Generally the MBO process is undertaken along the following lines.
 The subordinate and superior jointly determined goals to be accomplished
during the appraisal period and what level of performance is necessary for the
subordinate to satisfactory achieve specific goals.
 During the appraisal period the superior and subordinate update and later
goals as necessary due to changes in the business environment.
5. Psychological Appraisal
Psychological appraisal are conducted to assess the employee potential,
psychological appraisal consists of
 In – depth interviews
 Psychological tests
 Consultations and discussions with the employee
 Discussions with supervisor sub – ordinates and peers
 Reviews of others evaluations.
Evaluation is conducted in the areas of
 Employee‟s intellectual abilities.
 Emotional stability
 Motivation responses
 Sociability
 Employees ability to comprehend the events and
 Ability to foresee the future.
The psychological appraisal results are useful for decision – making about
 Employee placement
 Career planning and development and

39
  Training and development.
LIMITATIONS OF PERFORMANCE APPRAISAL
Performance appraisal is defined by Wayne Cascio as “the systematic
description of employee‟s job relevant, strength, weakness.
The following are the limitations of performance appraisal.
1. Halo effect
In this case the superior appraises the person on certain positive qualities only. The
negative traits are not considered. Such an appraisal will not give a true picture
about the employee. And in some cases employees who do not deserve promotions
may get it.
2. Horn effect
In this case only the negative qualities of the employee are considered and based on
this appraisal is done. This again will not help the organization because such
appraisal may not present a true picture about the employee.
3. Central tendency
In this case the superior gives an appraisal by giving central values. This prevents a
really talented employee from getting promotions he deserves and some employees
who do not deserve anything may get promotion.
4. Leniency and strictness
Some bosses are lenient in grading their employees while some are very strict.
Employee who really deserves promotions may loose the opportunity due to strict
bosses while those who may not deserve may get benefits due to lenient boss.
5. Spill overeffect

In this case the employee is judged positively or negatively by the boss depending
upon the past performance. Therefore although the employee may have improved
performance, he may still not get the benefit.
6. Fear of losing subordinates and spoiling relations
Many bosses do not wish to spoil their relations with their subordinates. Therefore
when they appraise the employee they may end up giving higher grades which are
not required. This is a n injustice to really deserving employees.
7. Goodwill and techniques to be used

40
Sometimes a very strict appraisal may affect the goodwill between senior and junior.
Similarly when different departments in the same company use different methods of
appraisal it becomes very difficult to compare employees.
THE SYSTEM PERFORMANCE APPRAISAL INBRANDIX
PROFILE OF PERFORMANCE APPRAISAL IN BRANDIX:
The Performance Appraisal System consists of two parts:
I. Goal Setting and Self Appraisal (P&DR, Part - A)
II. Performance & Development Review
The salient features of which are provided below:
I. GOAL SETTING AND SELF APPRAISAL (P&DR-PART A):
The goal setting and self appraisal form (P&DR- Part A) is given in the
Annexure I.
Goal Setting:
Mutual Goal Setting at the beginning of the appraisal period is the cornerstone of the
Performance Appraisal system because:
a. It provides direction/ reduces ambiguity
Setting targets / goals at the beginning of the period provides a direction to The
Officer in which to channelize his efforts, so that he knows exactly what is expected
of him.
b. It provides role clarity
Goals and targets provide a definition of the expected individual contribution of an
employee, vis-a-vis his superiors, peers and subordinates.
c. It provides more objective appraisal criteria
Goals/ targets set at the beginning become the standards for evaluation which are
clearly known to the Appraiser and Appraisee. The form has provision for setting
goals in the new assignment in case an officer is promoted/ re-assigned during the
year.

Periodic Review and Counseling:

Id-term review of achievements vis-a-vis goals/targets set at the beginning of the
appraisal cycle also forms a part of the P&DR, Part A Form. This review enables the
Appraisee and Appraiser to identify the degree of achievement, facilitating

41
/inhibiting factors and priority action areas. Midcourse corrections can be made and
inter-set priorities redefined. The P&DR- Part A provides for Performance Reviews
in Step III-1 to III-4.
The Self Appraisal Discussion:
The P&DR, Part-A form gives an opportunity to the appraisee to state the
achievements vis-a-vis the goals/targets set, highlight outstanding achievements,
identify factors beyond his control which prevented him from achieving his goals/
targets and elicit help from his supervisor, if required, to enable him perform his job
better.
This is one of the most important features of our Performance Appraisal system and
provides for:
a. An opportunity to establish a commonality of perceptions with regard to
the contents of the Self Appraisal Form.
b. An analysis of the employee's achievements taking into account factors
which aided/ hindered the same.
c. Identification of personal factors which have facilitated/ inhibited
performance.
d. The appraisee also identifies the training he requires as a part of his overall
Development Plan. Provision is also made to record apraisee's plans for self-
development and areas requiring Supervisor's assistance. This forms an input
to the appraiser while recommending training for the employee in the
Performance Appraisal Form.
e. A list of training programmers is provided in the Self Appraisal Form for
ready Reference
Short Appraisal Form:

a. In cases where an officer has been transferred or held more than one
assignment during the year, a short appraisal (Annexure II) is to be prepared
by the concerned Supervisor for each assignment of more than three months
duration. This appraisal is to be sent in a sealed envelope to the reporting
officer at the new location to assist him in preparation of the Annual
Appraisal of the concerned officer.

42
 b. In cases, where officers have been transferred/ re-assigned after spending
more than three months at a location, during the appraisal period, short
appraisals of his subordinate officer will form a part of the handing over/
taking over formalities.
II. THE PERFORMANCE & DEVELOPMENT REVIEW (P&DR, PART - B):
The Performance Appraisal Form (P&DR, Part B) is given in Annexure III. In case
an Officer is transferred during in between the appraisal period, then his appraisal is
to be prepared by the Supervisor at the location where the employee has worked for
the maximum period during the appraisal period.
The process of preparing the Performance Appraisal involves
Performance Analysis:
This analysis is recorded in Step 1.1 of the Appraisal format where the appraiser is
expected to give his assessment of the employee's achievement vis-a-vis goals/
targets set keeping in mind environmental and personal factors which aided
/hindered the employee's performance.
Identification of Strengths and Weakness / Managerial abilities /Competence:
As indicated earlier, certain personal factors which have aided / hindered an
employee‟s performance are identified during the self appraisal discussion as well as
in the course of Performance Analysis. These are to be enumerated in the space
provided for the same, quoting instances of work performed well and areas where
performance fell short of expectations. Eighteen managerial abilities /competence
areas which have a bearing on performance have been identified and are listed. It
may be emphasized in this regard, that only those factors which affect performance
should be recorded in the Performance Appraisal. The appraiser is expected to
Based his training recommendations on factors identified in these steps.
Utilisation of Training Programmers:

The purpose of this item is to assess the utility of training programmers at the
workplace and also to assess whether the officer is utilising the same for his self-
development.
Development of subordinates:
An item to assess the apraisee‟s effectiveness in developing, training, appraising and
counseling officers reporting to him is included in the Performance Appraisal Form.
43
This important aspect of a Manager's role has been covered separately to emphasize
its importance as well as provide an input to the reviewing officers when appraisals
go to them for review / moderation.
The Rating Scale :
In our Performance Appraisal System, ratings are given for accomplishments
separately. The rating on accomplishments is to be based on achievements vis-à-vis
goals and targets after analyzing the factors which either favorably or adversely
affected the employee's performance. The overall rating is given based on the
accomplishments, the managerial abilities /competence areas as well as strengths
and weaknesses of the employee as related to his performance. While giving the
overall rating, it is to be noted that accomplishments / performance is a very
important factor in the Performance Appraisal System. Thus when the overall rating
is recorded as better than the rating on accomplishments, the performance appraisal
is taken up with the concerned countersigning authority for review / revision. A five
point rating scale is used in our Appraisal System.
The definitions of the ratings are clearly indicated in the guidelines for appraisers on
page1 of the Performance Appraisal Form and are to be strictly adhered to in order
to avoid the common pitfall of over rating employees.
APPRAISAL COMPLETION SCHEDULE AND ACTIONS TO BE TAKEN
IN CASE OF NON-COMPLIANCE:

The appraisal completion schedule and the actions taken in case of non compliance
is based on the philosophy that the appraisee and the appraiser are both responsible
for the completion of the performance appraisal requirements.
Target setting schedule:
1. The target setting process is said to be complete when the targets set by
the appraisee are approved by the Reporting Officer and Reviewing Officer.
2. The schedule for completion of target setting process is given below.
ACTIONS IN CASE OF NON-COMPLIANCE OF TARGET SETTING
SCHEDULE

1. For all officers in their capacity as appraisee, Reporting Officer and

Reviewing Officer, who do not adhere to the above mentioned dates, the PI/PLI

44
payment of the previous year would be withheld till 31st January of the appraisal
year.
S.No . Stage of Completion Final Date
1 Target setting by Appraisee 30th April of Appraisal Year
2 Approval of targets by Reporting 10th May of the Appraisal Year
Office
3 Approval of targets by Reviewing 15th May of the Appraisal year
Officer

2. The withheld amount would be released in the month of February of the

appraisal year provided the concerned officer (appraisee or appraiser) have ensured
that as on 31st January, their relative part in quarter 3 review is completed.
3. In case the target setting is not completed by the appraisee by 30th June of
the appraisal year, the appraisee will not be eligible for PI/PLI payment of the
current year.
4. In case the targets are pending with the Reporting Officer for more than 10
days, the appraisal document will be systemically escalated to the Reviewing
Officer.
5. In case the quarterly reviews are pending with the Reporting Officer for
more than 30days, the appraisal document will be systemically escalated to the
Reviewing Officer.
6. In addition to the above mentioned criteria, the officers would be paid
PI/PLI subject to the completion of below mentioned requirements.
 Completion of HRD 1 and HRD 2 for self and subordinates for the
previous year.
 Completion of quarter one review for self and subordinates for the
current year.
 Submission of property returns online for the previous year.
HRD-II COMPLETION SCHEDULE:

1. The HRD-II is said to be complete in all respects only when the HRD-II
has been completed and submitted to HR Authority.

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 2. The schedule for completion of HRD-II is given below:
Sl.No. Stage of Completion Final Date
1 Rated by Reporting Officer 31st May of the next appraisal year
Actions in case of non-compliance of HRD-II completion schedule
1. If the appraisee does not acknowledge the overall review comments of the
Reporting Officer within 15 days of receiving the same, the appraisal document
would be systemically escalated to the Reporting Officer for ratings.
2. The link to access the HRD1 and HRD2 for a particular appraisal year
would be
removed on 31st May of the next appraisal year. In no case, neither the
appraisee nor the Reporting Officer would be allowed to access the link after the
above mentioned date.
3. In case there is an appraisal document wherein rating by Reporting Officer
is not available as on 31st May (i.e. at the time of removal of link) such appraisal
documents would be reviewed by the moderation committee. Performance
Management Group would provide the relevant details such as history of the
appraisal document, any communication between appraisee and appraiser etc. to the
moderation committee. The moderation committee would then review the facts to
determine the officer responsible for the delay and accordingly a rating of „4‟ would
be endorsed to the concerned officer.
GENERAL GUIDELINES:

1. In case of officers who are on deputation and where the Reporting

Officer/Reviewing Officer is not an employee of HPCL, the provision of completing
the appraisal in hard copy format would be provided. The Officer is required to
inform Performance Management Group about the mode of completion of appraisal.
2. In case of any disputes or interpretation issues the joint decision of the
concerned Functional Director and Director-HR would be final and binding.
Appraisal Completion criteria for Retiring/Resigning employees
1. In case the Officer is resigning/retiring after 45 days of the start of the
appraisal year (1st April), he/she is required to set his/her own targets and approve
the targets of all the subordinates under him/her.

46
 2. Any Officer who is resigning/retiring after completion of 45 days in
quarter one,
Quarter two or quarter three of the appraisal year, he/she is required to
complete the quarterly reviews for self and all the subordinates for the respective
quarters.
3. In case the Officer is resigning/retiring after completion of 45 days in
quarter four of the appraisal year, he/she is required to complete the review for
quarter three for self and all the subordinates.
4. The officers are required to confirm the completion of the appraisal
criteria asmentioned above to the performance management group for activation of
online HOTO.
PERFORMANCE APPRAISAL & PROMOTION POLICY FOR OFFICER –
SPORTSMAN:
Officer Sportsmen pursuing active sports career would not be covered by the
promotion policy guidelines listed above. A separate policy for their progression has
been developed which is as detailed below.
Organization:
Sports persons who are located at Mumbai would report to the Administration
Department, HQO, Sports persons who are located at the other cities would report to
the HR Dept of the zone.
All sports persons would be treated as a 'Pool' resource, and given specific
assignments in the field of Public Relations, Liaison, Co-ordination etc as and when
required. Sports persons on such assignments would be asked to report to a specific
person in user department, who would fill a "Short Appraisal Sheet" (Attachment A)
at the end of the assignment, and forward the same to the Administration/ HR
Department where the officer Sportsman is reporting.
Performance Appraisal:
Every sports person shall submit an Annual Sports Programmer at the beginning of
the Appraisal Year (i.e. April broken up by quarter as detailed in Annexure IV). The
Sports achievement would be reviewed and discussed at the end of every quarter.
The short appraisal sheets received from Department Heads where sportspersons
have been assigned would also be discussed and noted in the achievements column.

47
These reviews would form an input into the annual appraisal form and would be
attached to the same.
Career Progression:
Officer Sportsmen pursuing active sports career would be inducted in Salary Grade
'A' and promoted to salary grade 'B' on completion of eight years in the grade,
subject to satisfactory performance. However, once a sportsman is absorbed into a
mainstream function, he would be governed by the promotion guidelines applicable
to other officers of the Corporation, provided that he would be eligible for
promotion only after one appraisal has been prepared in the main stream function.
THE PERFORMANCE APPRAISAL TECHNIQUE THAT IS
FOLLOWEDIN BRANDIX:
BALANCED SCORECARD
A new approach to strategic management was developed in the early 1990‟S by
Drs. Robert Kaplan (Harvard Business School) and David Norton (Balanced Score
Card Collaborative). They named this system the 'Balance Score Card'.
Recognizing some of the weaknesses and vagueness of previous management
approaches, the balance score card approach provides a clear prescription as
to what companies should measure in order to 'balance' the financial perspective.
The balance score card is a management system (not only a measurement
system) that enables organizations to clarify their vision and strategy and
translate them into action. It provides a feedback around both the internal
business process and external out comes in order to continuously improve
strategic performance and results. When fully deployed, the balanced score card
transforms strategic planning from an academic exercise into the nerve centre of an
enterprise. The balanced score card suggest that we view the organization from four
perspectives, and to develop metrics, collect data and analyze it relative to each of
these perspectives.
 THE LEARNING AND GROWTH PERSPECTIVE:

This perspective includes employee training and corporate cultural attitudes related
to both individual and corporate self-improvement. In a knowledge-worker
organization, people - the only repository of knowledge -- are the main resource. In
the current climate of rapid technological change, it is becoming necessary for
48
knowledge workers to be in a continuous learning mode. Government agencies often
find them unable to hire new technical workers and at the same time are showing a
decline in training of existing employees. This is a leading indicator of 'brain drain'
that must be reversed. Metrics can be put into place to guide managers in focusing
training funds where they can help the most; in any case, learning and growth
constitute the essential foundation for success of any knowledge-worker
organization.
 THE BUSINESS PROCESS PERSPECTIVE
This perspective refers to internal business processes. Metrics based on this
perspective allow the managers to know how well their business is running, and
whether its products and services conform to customer requirements (the mission).
These metrics have to be carefully designed by those who know these processes
most intimately; with our unique missions these are not something that can be
developed by outside consultants. In addition to the strategic management process,
two kinds of business processes may be identified:
A) Mission-oriented processes,
b) Support processes.
Mission-oriented processes are the special functions of government offices, and
many unique problems are encountered in these processes. The support processes
are more repetitive in nature and hence easier to measure and benchmark using
generic metrics.

 THE CUSTOMER PERSPECTIVE

Recent management philosophy has shown an increasing realization of the
importance of customer focus and customer satisfaction in any business. These
are leading indicators: if customers are not satisfied, they will eventually find other
suppliers that will meet their needs. Poor performance from this perspective is thus a
leading indicator of future decline, even though the current financial picture may
look good. In developing metrics for satisfaction, customers should be analyzed in
terms of kinds of customers and the kinds of processes for which we are providing a
product or service to those customer groups.
THE FINANCIAL PERSPECTIVE

49
Timely and accurate funding data will always be a priority, and managers will do
whatever necessary to provide it. In fact, often there is more than enough handling
and processing of financial data. With the implementation of a corporate
database, it is hoped that more of the processing can be centralized and automated.
But the point is that the current emphasis on financials leads to the “unbalanced”
situation with Mission-oriented processes is the special functions of government
offices, and many unique problems are encountered in these processes. There is
perhaps a need to include additional financial-related data, such as risk
assessment and cost-benefit data, in this category.
CONCLUSIONS

The appraisal system is the corner stone of HRD activities as it is the major source
of input to decisions regarding placement, promotions, training and development.
The present system is the outcome of a process of evolution as the forms / system is
the outcome of a process of evolution as the forms / system are examined time and
again and reviewed / revised where required. The HRD Dept has had the opportunity
of studying the system followed by a large number of organizations, and find that
our system compares favorably with others. It is to be noted, however, that proper
filling up of the appraisal form is the main stay of the system and not the
framework/format. Objective and meaningful inputs from appraisals are absolutely
essential for Management decision making. The onus of making this system a
success lies with each officer in his role as Appraiser and Appraisee.

50
CHAPTER-IV

51
 DATA ANALYSIS & INTERPRETATION

1.How do you feel about performance -appraisal system of the organization

Options No. of Respondents Percentage

Excellent 12 14

Very Good 18 20

Good 27 40

Satisfactory 13 26

INTERPRTATION:

From the above graph we notice that 54% of the employees felt good about
the performance appraisal system in the organization. It states that the
organization has a strong performance appraisal system

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 2.What is the basis of performance appraisal system?

Options No. Respondents Percentage

Skills 20 35
Qualification 15 20
Seniority 13 15
All the above 34 30

INTERPRETATION:

48% of the respondents opine that the performance appraisal system

should be based on skills, qualification and seniority.

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 3. Does the performance appraisal system lead to job satisfaction?

Options No. of Respondents Percentage

Yes 85 100

No 0 0

INTERPRETATION:

All the respondents agreed that the performance appraisal system will
lead to the job satisfaction.

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 4.What is the tenacity of performance appraisal system?

Options No. of Respondents Percentage

Once in month 38 56
Once in 3 months 20 22
Once in 6 months 16 12
Once in year 15 10

INTERPRETATION:

56% of the respondent opined that the performance appraisal system

should be done once in a month. Remaining 44% opined that the periodicity of
performance appraisal system shall be more than a month.

55
5. In your opinion how is the performance of the employee after training?

Options No. of Respondents Percentage

Excellent 3 6
Very Good 46 52
Good 18 22
Satisfactory 15 20

INTERPRETATION:

Majority of 52% respondents think that, after the training employee‟s

performance will be very good. Hence it states that, organization provides
effective training.

56
6. Did the appraisal system provides an opportunity for self-review
and development of the empl oyees?

Options No Of Respondents Percentage

Yes 68 76
No 18 24

INTERPRETATION:

76% of the respondents felt that the organization‟s appraisal system

provides an opportunity for self review and reflection of the employee.

57
7.Whether the appraisal system has any scope for helping each employee to
discover his potential?

Options No. of Respondents Percentage

Yes 62 70
No 25 30

INTERPRETATION:

70% of the respondents felt that the performance appraisal system will
definitely discovers potential of the employee.

58
1. Whether appraisal system provides any opportunity for self - review
reflection?

Options No. of Respondents Percentage

Yes 46 51
No 34 49

INTERPRETATION:

51% of the respondents felt that the appraisal system provides an

opportunity for self review and reflection.

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2. Do you feel rewards/awards motivate employee’s performance towards
work?

Options No. of Respondents Percentage

Yes 54 62
No 28 38

INTERPRETATION:

62% of the respondents felt that rewards will motivate employees towards
work.

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3. How do you feel about the present performance evaluation system?

Options No. of Respondents Percentage

Excellent 4 8
Very good 6 12
Good 47 54
satisfactory 23 26

INTERPRETATION:

54% of the respondents felt that the performance evaluation system is

good.

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11. Do you feel it necessary that the superior inform to the employee about
the level of his performance?

Options No. of Respondents Percentage

Yes 85 100

No 0 0

INTERPRETATION:

100% of the respondents felt that superior should inform to the

employees about the level of his performance.

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12. Does your organization provide any additional training to the
employees with low performance?

Options No. of Respondents Percentage

Yes 85 100
No 0 0

INTERPRETATION:
100% of the respondents agreed that organization provides additional training
to the employees with low performance.

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13. How do feel about the present performance reward system?

Options No. of Respondents Percentage

Excellent 3 4

Very good 12 16

Good 48 56

Satisfactory 20 24

INTERPRETATION :
56% of the respondents felt that present performance reward system is good.

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14. In your view who should give the information about the employee
performance?

Options No. of Respondents Percentage

Personal Observation 15 20
Statistical Reports 8 10
Oral Reports 15 20
All the above 45 50

INTERPRETATION:

20% of the respondents opined that oral reports should give the
information about employee performance.

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 15. In your opinion who should involve in the performance evaluation of the
employee?

Options No. of Respondents Percentage

Superior 54 68

Personal Manager 8 10

Concerned Head of the Department 10 12

All the above 8 10

INTERPRETATION:

68% of a respondents felt that superior should involve in the performance

evaluation of the employees.

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CHAPTER-V

67
 SUMMARY

In this study an attempt has been made to examine and analyze the
performance appraisal system in Daspalla hotel, Visakhapatnam.

The performance appraisal system is observed to be systematic and

progress of an executive on present job and his potential for higher level jobs in
future can be increased.

The study focuses on the appraisee‟s viewpoint on performance appraisal

because they are the direct people who get affected either positively or negatively
by the results of the appraisal.

All the appraisee‟s are aware of performance appraisal system, its

periodicity and the appraising officers. But some are not informed about the
results of the appraisal. So far as training is concerned, many of them are given
on the basis of their performance appraisal .interestingly majority of the
appraisee‟s stated that the present system of performance appraisal is useful for
their development.

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 FINDINGS

 54% of the employees feel good about the performance appraisal system
of the organization.

 48% of the employees feel that performance evaluation leads to job

satisfaction.

 52% of the employees think that after training employee‟s performance is

excellent.

 76% of the employees believe that appraisal system provides an

opportunity for self review and development.

 54% of the employees feel good about the present performance evaluation
system.

 24% of employees are satisfied with the present performance reward

system.

 62% of the employees are strongly agreeing that the present performance
Appraisal system change the employee‟s attitude towards work

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 SUGGESTIONS

 For every organization awareness of performance appraisal is important.

So organization should create 100% awareness about performance
appraisal.

 Job satisfaction is a factor that every organization has to look for

 Every organization should provide for a better Training and development

facilities for the employees.

 Job evaluation is one of the dominant factors. So organization needs to

give more importance to job evaluation.

 Management should follow effective performance reward system for

improving employee satisfaction.

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 BIBLIOGRAPHY

NAME OF THE SOURCE : Internet

ADDRESS : www.daspalla hotel.com

www.daspallagroups.com

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 ANNEXURES

1. How do you feel about performance appraisal system of the organization?

a) Excellent b) Very good

c) Good d) Satisfactory

2. what is the basis of performance appraisal system?

a) Skills b) Qualification c) Seniority d) All the above

3. Does your performance appraisal system lead to job satisfaction?

a) yes b)No

4. what is the tenacity of Performance appraisal system?

a) Once in month b) Once in 3 months

c) Once in 6 months d) once in year

5. In your opinion who should involved in the performance evolution of the

employee?

a) Superior b) Personal Manager

c) Concerned head of the department d) All the above

6. Did the performance appraisal system provides an opportunity for self-review

and development of the employees?

a) yes b) no

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7. Whether the appraisal system has any scope for helping each employee to

discover his potential?

a) yes b) no

8. whether the appraisal system provides any opportunity for self-review

reflection?

a) yes b) no

9. Do you feel rewards/awards motivate employee‟s performance towards work?

a) yes b) no

10. How do you feel about present performance appraisal system?

a) Excellent b) Very good c) Good d) Satisfactory

11. Do you feel it is necessary that the superior inform to the employee
about the level of his performance?

a) Yes b) No

12. Does your organization provide any additional training to the low
performance employees?

a) yes b)no

13. How do you feel about the present performance reward system?

a) Excellent b) Very good c) Good d) Satisfactory

14. in your view who should give information of the employee performance?

a) Personal observation b) statistical reports

c) Oral reports d) all the above

15. In your opinion how is the employee's performance after the training?

a) Excellent b) Very good c) Good d) Satisfactory

73