A STUDY ON EFFECTIVENESS OF PERFORMANCE APPRAISAL

SYSTEMS
IN LEONA WORLDWIDE LOGISTICS

ABSTRACT:
The study aims to evaluate the effectiveness of performance appraisal systems in
Leona worldwide logistics. The importance of performance appraisal in Leona worldwide
logistics and the criteria for evaluating its effectiveness were reviewed in the literature. A
research design was developed to collect data from Leona worldwide logistics owners and
employees, which was then analysed to determine the findings. The results showed that while
performance appraisal systems were found to be effective in certain areas, there were also
limitations and areas for improvement. The study provides implications and recommendations
for small business owners and contributes to the field by highlighting the importance of
effectively implementing performance appraisal systems in small businesses.

INTRODUCTION:
Performance appraisal systems are widely used in organisations to assess
employee performance, provide feedback, and support career development. Despite the
widespread use of these systems, their effectiveness remains a subject of ongoing debate. In
the context of small businesses, the effectiveness of performance appraisal systems is
especially important, as small businesses often have limited resources and may not have the
same level of experience or expertise in human resources management as larger organisations.
This article aims to examine the effectiveness of performance appraisal systems in small
businesses and explore the factors that contribute to their success or failure.

Performance appraisal systems play a crucial role in the success of any

organisation, small or large. These systems serve as a means to evaluate the performance of
employees and provide feedback that can help drive improvement. In small businesses, where
resources are often limited, it is even more important to have a performance appraisal system
that is effective in order to maximise productivity and drive growth. In this research, the
effectiveness of performance appraisal systems in small businesses will be explored, including
their impact on employee performance, motivation, and overall business success.
OBJECTIVES:

1. To assess the level of effectiveness of performance appraisal systems in Leona

worldwide logistics.
2. To identify the factors that contribute to the success or failure of performance
appraisal systems in Leona worldwide logistics.
3. To examine the impact of performance appraisal systems on employee motivation,
job satisfaction, and performance.
4. To evaluate the relationship between performance appraisal systems and employee
retention in Leona worldwide logistics.
5. To determine the role of communication in the performance appraisal process and
its impact on the effectiveness of the system.

THE SCOPE OF THE REPORT:

The study and analysis of the effectiveness of performance appraisal

systems in small businesses. The research will focus on exploring the different types of
performance appraisal systems used in small businesses, their impact on employee
motivation and performance, and their overall effectiveness in achieving the desired results.
The study will also examine the factors that contribute to the success or failure of
performance appraisal systems in small businesses, such as the involvement of employees,
the level of transparency and fairness, and the alignment with the company's overall goals
and objectives. Additionally, the study will look into the challenges faced by small
businesses when implementing performance appraisal systems and the strategies they use
to overcome these challenges.
The impact of performance appraisal systems on small businesses. It aims to
evaluate the effectiveness of different types of performance appraisal systems and their
impact on the overall performance and success of small businesses. The study will cover
different factors that influence the implementation and success of performance appraisal
systems in small businesses, including communication, goal-setting, feedback, and reward
systems. The research will also explore the challenges faced by small businesses in
implementing performance appraisal systems and identify potential solutions to overcome
these challenges.
 THE NEEDS OF THE REPORT:

• To evaluate employee performance and identify areas for improvement.

• To align employee goals with the overall objectives of the organisation.
• To provide a structured process for feedback and constructive criticism.
• To provide a basis for rewards and recognition programs.
• To provide data for personnel planning and management decision-making.
• To assess the effectiveness of the organisation’s training and development
programs.
• To provide employees with the opportunity to reflect on their performance and
identify areas for improvement.
• To promote open communication and foster a positive working environment.
• To ensure that the organisation’s human resources policies and practices are fair
and consistent.
• To provide a systematic method for identifying and addressing performance
related problems.

COMPANY PROFILE:

Name of the company: LEONA WORLDWIDE LOGISTICS

ABOUT THE COMPANY:

• We are one of the leading Customs House Agents in Chennai having our Own
License with complete Logistic solutions.
• We are the genuine concern with 15years of Experience in Handling both
Clearance and Forwarding field
• We provide the best satisfied services in this field too u Customers.
EXPERIENCE IN HANDLING:

We Have More than 15 Years of Experience in handling all types of Imports,

Exports & forwarding.

OUR OBJECTIVES:
The Mission of the Company is to attain holistic perfection and to absorb all
evolutionary innovations and technological up-gradations in the service industry which helps
to keep a leading pace and winning laurels & credentials.

OUR PHILOSOPHY:
Our philosophy is to grow and provide a best and comprehensive service with
divinity, cost benefit, time saving, flexible and dynamitic service to the customers.

OUR OFFER:

➢ STRONG LOCAL MANAGEMENT

• Well experienced employees for online documentation.
• With years of experience In Air/Ocean Clearances Good Domestic
Logistics background.
• Well Experienced Employees with good Co-Operation in a strength of 25
Numbers.

➢ FLEXIBLE
• We are ready to run extra miles for the customers.

➢ COMPETITIVE RATES WITH CUSTOMISED SERVICE

• We are providing best and competitive rates for our customers.
SERVICES:
Well Equipped Office engaged in Total Logistic- EXP/IMP, Warehousing, Customs
Clearance & Transportation with good Co-ordination.

➢ Air – Imports and Exports

• Good Agent Network
• Good relations with Airlines
• Competitive rates for both inbound and outbound
• Capability to serve the clients globally
• Specializes in Door to Door to Cargo Clearances.

➢ Ocean – Imports and Exports

• Good Relationship with Liners Good ground operations
• Door to Door cargo movement
• Clearance of Bulk, Break bulk cargo, ODC and reefer cargo
Customized Work process

FACILITIES:

➢ CUSTOMS CLEARANCE:
• We Provided Online Documentation for customs Filing to provide Faster Service
for both Export and import.

➢ TRANSPORTATION:
• We have our own transport to cater the needs of Importing & Exporting
Community.
• We also have a tie up with Truck owners and other Transporters for Speedy
Delivery.

➢ WARE HOUSE:
• We have Go-Down Facility for both Import for warehousing & Export of Goods
prior bringing to Customs Area if it requires.
REVIEW OF LITERATURE:
• Devries, Morrison, Shullman and Gerlach (1981) define performance appraisal
as a process by which an organization measures and evaluates an individual
employee’s behavior and accomplishments for a finite period.

• Eichel and Bender (1984) Over the past quarter century, the purpose of
performance appraisal has shifted from tools supporting the activities of
management to an increasing trend towards personnel development.

• Churchill et al., (1985) Appraisals are generally considered to have a positive

influence on performance, hut they also may have a negative impact on motivation,
role perceptions, and turnover when they are poorly designed or administered.

• Scheneier, Richard & Lloyd (1986) is concerned with three possible measures
namely assessing results, behaviors, and personal characteristics. Each dictates a
specific type of appraisal format based on competency or job-related behavior.
These forms of appraisals are made by single or multi rater (two or more of
supervisor/ peer/self/subordinate/outsider).

• Prince and Lawler (1986) found that the constructs "work planning and goal
setting" and "discuss performance attributes" exerted a positive influence on
employees' satisfaction with and perceived utility of the performance appraisal. In
contrast, the construct "career development" showed little influence on performance
appraisal satisfaction.

• Cleveland, Murphy, and Williams, (1989) Development provided by the

immediate supervisor has been shown to be an important and common use of
performance appraisal.

• Vroom (1990) states that formal performance appraisal plans can be designed to
meet the following key needs: (a) the organization; (b) the supervisor; and © the
employee. He stresses the need for effective evaluation as it can effectively serve
these critical areas.

• Denhardt (1991) defines performance appraisal as a specific evaluation with

respect to an individual’s progress in completing specified tasks.

• Wanna et al (1992) define the objective of staff appraisals as “to improve planning
and service delivery at the general level, but also to provide feedback to individual
officers”.

• Cherry (1993) however sees the appraisal process as fundamental to the success of
organizational change initiatives citing the work of the “powerful formative effects
(of performance management) on the organisational power structure, on the
workforce skill profiles and on corporate culture”.
• Blanchard et al. (1994) discusses the fact that leadership style is the pattern of
behaviors you use with others as perceived by them. The critical part being that it
is how others perceive your behaviors that determine your leadership style and that
this perception will be based on how you communicate.

• Moulder (2001) states that performance appraisals are valued for defining
expectations and measuring the extent to which expectations are met. She goes on
to state that appraisals can make clear to employees where they are having success
and where they need to improve performance. Moulder indicates that appraisals are
useful in setting goals and in fostering improved communications among work
groups and between employees and supervisors.

• ICMA (2005) states that almost all employees are eager to know how well they are
doing in their jobs, but many dread the meetings in which their performance is to
be discussed.

• According to Angelo S. DeNisi and Robert D. Pritchard (2006) “Performance

appraisal” is a discrete, formal, organizationally sanctioned event, usually not
occurring more frequently than once or twice a year, which has clearly stated
performance dimensions and/or criteria that are used in the evaluation process.
Furthermore, it is an evaluation process, in that quantitative scores are often
assigned based on the judged level of the employee’s job performance on the
dimensions or criteria used, and the scores are shared with the employee being
evaluated.

• Lillian, Mathooko & Sitati (2011) The information gathered and performance
appraisal provide basis for recruitment and selection, training and development of
existing staff, and motivating and maintaining a quality human resource through
correct and proper rewarding of their performance.

• Sharma (2012) these methods are less structured then the traditional method which
is less focuses on the rankings and ratings and more emphasis on arranging meetings
between employees and supervisor.

• Ho, Yau, and Wong (2018) on the 360-degree feedback-based PAS, showed that
it can enhance employee performance, increase job satisfaction, and reduce
turnover rates. The study recommended that the PAS must have an adequate
evaluation system, provide a clear evaluation process, and provide effective
feedback.

• Chen and Huang (2019) on the relationship between PAS and employee
performance, found that PAS can improve employee performance, increase job
satisfaction, and enhance the organization's competitiveness. The study
recommended that the PAS must incorporate an effective evaluation system, have
a clear performance evaluation process, and provide relevant feedback.
• Alshammari and Ali (2020) on the PAS in the logistics industry, found that PAS
can identify employee training needs, help in developing training programs, and
improve employee retention rates. The study recommended that the PAS must
incorporate an effective evaluation system, provide relevant feedback, and have a
fair and transparent evaluation process.

• Raza and Ali (2021) conducted on PAS in the logistics industry, found that PAS is
an effective tool for performance evaluation, development, and feedback in the
logistics industry. The study recommended that the PAS must align with the
organizational strategy, incorporate the employee's goals, and have a fair and
transparent evaluation process.