Professional Documents
Culture Documents
AT
Administration
Under Guidance of: Flt Lt (Dr) Renu Lamba
21261019
(Saurabh Kumar)
Counter signed
I would like to express my sincere gratitude to the people who have directly or
indirectly helped me throughout in the successful completion of my project report
on “STUDY OF PERFORMANCE APPRAISAL at “JINDAL BROTHERS
PVT. LTD” in GURGAON.
I take this opportunity to express my deep sense of gratitude and whole hearted
thanks to MR. VIVEK SINGH(HEAD HR) for his valuable guidance and for
giving me this opportunity to complete my training in his organization, and also I
thank him for sharing his experiences which would prove as a great lesson in my
future professional life
I take this opportunity to thank my project guide Flt Lt (Dr) Renu Lamba who has
seen me through all the stages of the project. I would like to express my gratitude
to her for her timely advice and Guided as per requirement. And also, I would like
to thank Dr Maitri for helping me whenever I needed.
Above all I thank GOD, Almighty for the immense wishes and blessings that gave
me motivation and confidence to complete this project on time
(SAURABH KUMAR)
TABLE OF CONTENTS
1. Chapter I
Acknowledgement 3
Profile of the Project Guide 4-5
Executive Summary 6
2. Chapter II
Company profile 7-15
Scope & Objective 16
3. Chapter III
Research methodology 17-18
4. Chapter IV
Performance management 19-33
5. Chapter V
Data analysis 34-55
6. Chapter VI
Findings 56
7. Chapter VII
Recommendations 57
8. Chapter VIII
Limitations 58
9. Chapter IX
Bibliography 59
10. Chapter X
Appendix 60-71
EXECUTIVE SUMMARY
This project report is a review based on theory as well as the industry outlook of performance appraisal
system of the organization.
The report starts with the Introduction and Literature Review of performance appraisal system that
outlines its history, definitions, purposes, types, process, methods, appraiser, parameters of evaluation
and the essentials of an effective appraisal system.
Further the performance appraisal system of Jindal Brothers Pvt.Ltd.company, collected through various
primary and secondary sources have been included in the report which gives a fair idea of the kind of
appraisal system being followed across various corporates.
PERFORMANCE APPRAISAL
Validate selection techniques and human resource policies to meet federal Equal Employment
Opportunity requirements.
Performance appraisal, while enabling a manager to identify the training needs of employees,
and evolving a training plan for them, also, serves to meet other objectives. Performance
appraisal satisfies the psychological needs individuals have to know how they are performing
their job and increases employees' job satisfaction and morale by letting them know that the
manager is interested in their progress and development. Systematic performance appraisal also
provides both the firm and the employee a careful evaluation, rather than a snap judgement of an
employee's performance. Many firms use performance appraisals to plan placements and
transfers and to provide input into decisions regarding salary increases, promotions, and
transfers. Finally, performance appraisals may be used as a basis for the coaching and
counselling of individual employees by their superiors. To summarize the uses of performance
appraisal:
Performance improvement
Compensation
Placement
Training & development needs assessment
Career planning
Job design error detection
Goal The job description and the performance goals should be structured, mutually decided
and accepted by both management and employees.
Reliable and consistent Appraisal should include both objective and subjective ratings to
produce reliable and consistent measurement of performance.
Practical and simple format The appraisal format should be practical, simple and aim at
fulfilling its basic functions. Long and complicated formats are time consuming, difficult to
understand, and do not elicit much useful information.
Participatory and open An effective appraisal system should necessarily involve the
employee's participation, usually through an appraisal interview with the supervisor, for
feedback and future planning. During this interview, past performance should be discussed
frankly and future goals established. A strategy for accomplishing these goals as well as for
improving future performance should be evolved jointly by the supervisor and the employee
being appraised. Such participation imparts a feeling of involvement and creates a sense of
belonging.
Rewards Rewards - both positive and negative - should be part of the performance appraisal
system. Otherwise, the process lacks impact.
Feedback should be timely Unless feedback is timely, it loses its utility and may have only
limited influence on performance.
Impersonal feedback Feedback must be impersonal if it is to have the desired effect. Personal
feedback is usually rejected with contempt, and eventually de-motivates the employee.
Feedback must be noticeable The staff member being appraised must be made aware of the
information used in the appraisal process. An open appraisal process creates credibility.
Commitment Responsibility for the appraisal system should be located at a senior level in
the organization so as to ensure commitment and involvement throughout the management
hierarchy.
We've seen from previous discussions, that people are one of a company's most valuable assets.
While most assets depreciate over time, people, viewed as assets, may actually appreciate. One
of the manager's major responsibilities is to improve and update the knowledge and skills of
employees -- appreciation of assets. Performance appraisal plays a significant role as a tool and
technique of organizational development and growth. In essence, effective appraisal systems
provide both evaluation and feedback.The main aim of the evaluation is to identify performance
gaps -- when performance does not meet the organizational standards -- whereas feedback is
necessary to inform employee about those performance gaps.
From the employee's perspective, performance appraisal informs them about what is required of
them in order to do their jobs, it tells them how well they have achieved those objectives and
helps them take corrective action to improve their performance, and, finally, it may reward them
for meeting the required standards.
The firm, on the other hand, needs a performance appraisal system in order to establish
principles of managerial accountability. Clearly, where employees are given responsibilities and
duties, they need to be held accountable. One of the functions of performance appraisals is to
ensure that people are accountable for their organizational responsibilities.
Perhaps the most significant benefit of performance appraisals is the opportunities they provide
supervisors and subordinates to have one-on-one discussions of important work issues. During
appraisals, subordinates and supervisors can focus on work activities and goals, identify and
correct existing problems, and encourage better future performance.
Motivational research has recognized the power of recognition as an incentive (see Maslow and
the Expectancy Theory of Motivation). Performance appraisals provide employees with
recognition for their work efforts. The appraisal system provides the supervisor with an
opportunity to indicate to employees that the organization is interested in their performance and
development. This recognition can have a positive motivational influence. on the individual's
sense of worth, commitment and belonging.
Recruitment and selection procedures need to be evaluated. Appraisal data can be used to
monitor the success of a firm's recruitment and selection practices. From this data, the firm can
determine how well employees who were hired in the past are performing.
Employee evaluation is a major objective of performance appraisal. Given the major functions of
management -- planning, organizing, leading and controlling -- it is clear that evaluations
(controlling) need to be done.
At its most basic level, performance appraisal is the process of examining and evaluating the
performance of employees. However, the need to evaluate is also a source of tension as
evaluative and developmental priorities appear to clash. Some management experts have argued
that appraisal cannot serve the needs of evaluation and development at the same time.
With the advent of TQM (Total Quality Management) and the extensive use of teams, traditional
performance appraisal systems have come under some criticism. For example, rather than
motivating employees, conflict may be created when appraisals are tied to merit pay and when
that merit pay is based on a forced ranking.
W. Edwards Deming, the founder of total quality management (TQM) has long been associated
with the view that performance appraisals ought to be eliminated. Many TQM proponents claim
that performance appraisals are harmful.
PERFORMANCE APPRAISAL - PROCESS MAP
PERFORMANCE APPRAISAL METHODS
2. Paired Comparison
4.Easy Appraisal
5.3600 appraisal
Graphic Rating Scale: A performance appraisal that rates the degree to which the employee
has achieved various characteristics.
1)The graphic rating scale is the most common type of appraisal used.
2)Various characteristics such as job knowledge or punctuality are rated by the degree of
achievement.
Forced-choice Approach: A performance appraisal that presents the appraiser with sets of
statements describing employee behavior; the appraiser must choose which statement is most
characteristic of the employee and which is least characteristic.
Easy Appraisal: Sometimes the supervisor must write a description of the employee’s
performance. The easy appraisal is often used along with other types of appraisals, notably
graphic rating scales. They provide an opportunity for supervisors to describe aspects of
performance not thoroughly covered by an appraisal questionnaire.
Traditional performance appraisals, as discussed above, can be both subjective and simplistic.
At times, they can also be deemed to be "political". In an attempt to improve this methodology,
some companies have turned to 360-degree appraisals. 360 appraisals pool feedback from a
department's internal and external customers to ensure a broader, more accurate perspective of an
employee's performance.
360-degree performance appraisal is an attempt to answer the question: "How can a supervisor
evaluate an employee he or she sees only a few hours each week?"
Appraisal Process
In order to obtain a better understanding of how the performance appraisal has been put together
by The Corporation, the researcher has provided an overview of the company’s performance
appraisal process. The researcher felt that the overview of the performance appraisal process
would be necessary, since the process provided a framework for the performance appraisal.
PRE-APPRASIAL STEPS
The performance evaluation can be made for variety of reasons counseling, promotions, salary
increases, administration or combination of these. It becomes very necessary to begin by stating
the objectives of evaluation programs very clearly and precisely. The personal appraisal system
should address the question who, what, how of performance appraisal.
These questions are the components of these appraisal systems which are discussed below
individually.
The immediate superior, the head of the department or any other can rate the performance of an
individual. In addition to this, sum organizations follow the system of self appraisal and /or
appraisal by peers. A group, consisting of his senior, peers and subordinates, can do appraisal,
whoever is rating; he should be trained and impartial. In most of the organizations the ratings is
done by his immediate superior who is considered the best person to understand his subordinates
strengths and weaknesses. Now a day some organizations are following the method of self-
appraisal.
The ‘when’ answers the query the frequency of appraisal? The informal counseling should
occur continuously but the manager should discuss an employee’s work as soon as he gets an
opportunity to provide positive reinforcement and use poor work as basis of training. The time
and period of appraisal differs according to the need and nature of the organization.
The where indicates the location where employee should be evaluated? It is usually done at
work place or office of the supervisor.
Under this, the organization must decide what different kinds of methods are available and which
of these may be used for performance appraisal. On the basis of comparative advantages and
disadvantages, the nature and philosophy of management and the needs of an organization; the
method of appraisal is decided.
COMPANY PROFILE
Jindal Brothers Pvt. Ltd. specializes in Design, Engineering, Fabrication and Erection of Pre-
Engineered Metal Building Systems. The Group is well known in the Middle East & India for
the quality of the products and services offered. In 1998, Jindal Brothers Pvt. Ltd started its
journey in India by setting up State of Art manufacturing facility at Manesar, Gurgaon. Design
and Detailing work is carried out by highly skilled Engineers with computed aided design and
drafting facilities at the Company’s Head Office at New Delhi. Their objective is to deliver cost
effective, quality Pre-Engineered Metal Buildings within agreed time schedules to their
Customers. Jindal Brothers Pvt. Ltd. maintains high degree of professionalism at all levels, a
commitment needed to maintain highest possible standards. Every project is executed with
Micro Planning, to achieve the Milestones set out in the contract. This combined with quality of
their products has earned us reputation in the Market Place. Corporate giants, both National and
Multinational, have complimented their strategy of providing single point responsibility for
Supply and Erection with highly motivated and trained In House Project Management Team to
handle projects, whether it is small or big, simple or complex. More than 500 Pre-Engineered
Buildings have been installed across the length and breadth of their Country. This experience
corroborates their claim. Regional / Area offices across the Country are fully equipped to provide
pre-order and post order service to their valued Customers. Organizational effectiveness depends
upon the level of performance of its employees. Hence the level of performance has to be
ensured. Periodic stock taking of the qualitative state of the man power is of vital importance to
an organization and the organization tries to collect the relevant data through the tool of
performance appraisal reports. Thus performance appraisal is essential for performance
effectiveness and efficiency of the organization and also for carrying out administrative decisions
regarding human resources. The correctness of the decision will depend heavily upon the validity
of the data gathered through appraisal system.
The JINDAL BROTHERS is a relatively an older organization and has been restructuring its
Human Resources Systems and Policies in alignment with the current business environment. I
have therefore taken up this project with an aim to study the existing system of performance
appraisal so that this might help other organizations to follow the same.
Services
Pre-Engineered steel buildings are designed and fabricated to client’s requirements in accordance
with the Universal standards. A pre-engineered steel building consists of four major groups of
components namely primary members, secondary members, metal roofing/wall cladding and
connection fasteners. These components are designed that they are compatible with each other.
The fabrication of these components is carried out in factory under strict quality control as per
detailed shop drawing. These components are transported to site with proper markings and
assembled at site as per erection drawings.
They call this the knowledge Hub, a world class Design & Engineering Office manned with
team of experienced professionals and equipped with latest sophisticated design tools which
distinguishes Jindal Brothers Pvt. Ltd. from others.
Stadd Pro, MBS, AUTOCAD, Primavera, MS Projects are among the few Engineering &
execution tools in use at Jindal Brothers Pvt. Ltd. that delivers the fastest solution at the best of
engineering practices applied in a true international design environment.
The Brain House offers intelligent engineering solutions and supports post order functions with
general arrangement, fabrication and erection drawings. The computerized drafting, detailing and
logic programs enable user friendly details to simplify manufacturing process and erection
methods.
The Jindal Brothers Pvt. Ltd. knowledge archives has vanity of standards and design codes such
as AISC, AISI, MBMA, AWS, UBC, ASCE, IBC, IS and many others to suit customer’s need of
a Pre-Engineered building at any place or country.
The Jindal Brothers Pvt. Ltd.’s consistent efforts in research & development and global sourcing
of material have positioned the Organization as a lead runner in introducing innovative ideas and
products in the market place.
Manufacturing Facility:
Grain Godown
Cafeteria
Dept. Store
Jagdishpur ITC
Grain Godown
Cafeteria
Mandsour ITC
Grain Godown
Cafeteria
Dept. Store
Amaravati ITC
Dept. Store
Gurgaon SMCC
Chandouli ITC
Daman Enercon
GreenPly Industries
To identify the technique of Performance Appraisal followed in Jindal Brothers Pvt. Ltd.
To study how the employees are rated against these parameters
To identify how the performance of the employees is improved and enhanced
To provide suggestions & recommendations to improve their Performance Appraisal
REASONS FOR CHOSSING TOPIC:-
RESEARCH METHODOLOGY
In order to accomplish the objectives of the study, it is essential to articulate the manner in which
Secondary data: It was collected by reviewing different literatures, from published books,
management journals, articles published by the other researchers on 360 Degree Appraisal.
Sampling:
The total sample size for this project was 4 HR people at Jindal Brothers.
The information collected through above methods has been tabulated, analysed and interpreted.
Finally an overall assessment of the contribution of top management has been made towards
improving the effectiveness of the organization.
TYPES OF RESEARCH
1 EXPLORATIVE RESEARCH
2 DESCRIPTIVE RESEARCH
3 DIAGNOSTIC RESEARCH
4 HYPOTHESIS TESTING RESEARCH
Explorative Research:- To gain familiarity with phenomenon or to achieve an insight into it.
Diagnostic Research:-To determine the frequency with which something occurs or with which
it is associated with something else.
The present project is Descriptive cum Explorative in nature. It is done to poetry accurately
the characteristics of a particular individual situation or a group. The major purpose of the
descriptive research is the description of the state of the affairs as it exits at resent. The main
characteristics of this method are that the researcher has no control over the variables; he can
only report what has happened or what is happening.
LITERATURE REVIEW
Organizations exist to achieve goals. Goals are only met when individual employees efforts
matches with policy of the organization and thus bringing out success and effectiveness. The
assessment of how successful employees have been at meeting their individual goals therefore
becomes a critical part of HRM and here comes Performance Appraisal System.
Is an organizational necessity
The present study explored the moderating effects of organizational variables on the appraisal
characteristic-appraisal satisfaction relationship. Analyses indicated that the appraisal
characteristics of action plans, frequency, and rater training were more positively related to
appraisal satisfaction when subordinates experienced role conflict, were not closely monitored,
and supervisors had a large span of control. The results provide substantial support for
conceptualizing appraisal satisfaction as a contingent function of both appraisal characteristics
and organizational variables. Implications of the findings for the design of appraisal systems,
appraisal effectiveness, and future research are discussed.
Performance appraisal ratings of 125 first-level managers were analyzed to investigate the degree
to which the criteria used to evaluate the overall job performance of black managers differs from
that used to evaluate white managers. The performance appraisal form included items that
measured both the social behavior dimension and task/goal accomplishment dimension of job
performance. The appraisal ratings of both groups on each dimension were correlated with
measures of overall job performance and promote ability. Results indicated that social behavior
factors are more highly correlated with the overall job performance of black ratees than for white
ratees. Implications of these results for both black managers and organizations are discussed.
This chapter deals in tabular presentation results and their analysis for the purpose of easy
* Inference
Very true 0 0
True 4 8
Partly true 9 18
Not true 37 74
80
70
60
50 Very true
40 True
30
Partly true
20
10 Not true
0
No. of Percentage
re-
sponses
Inference: Most of the respondents (74%) found the above statement to be ‘Not True”. This was
followed by 18% of the respondents feeling that this statement was ‘Partly True’ for their
organization. Only 8% of the people found it to be ‘True’.
Remarks: Although the appraise does not have a clear understanding of what is expected of him
at the beginning of the year (Inference I), both he and the appraiser know what his job is all
about. This also shows that although an employee knows what his current to do to be rated
higher by the reporting officer. The responsiveness in category of Partly True and Not True may
be due to the face that job content in Jindal Brothers is flexible and not well defined and some
people find it difficult to define their jobs. However, most of the people have a general idea of
the scope of their jobs.
2. There are mechanisms that help employees develop their potential for the next round of
job?
Very true 0 0
True 5 10
Partly true 25 50
Not true 20 40
50
40
30 Very true
True
20
Partly true
10
Not true
0
No. of Percentage
re-
sponses
Inference: Quite a large number of respondents (40%) shared the view that the appraisal system
did not give a clear understanding of all appraisals, job to both appraiser and appraise by saying
that it was ‘Not True’. Only 50% and 10% of the respondents felt that the statement was ‘True’
and ‘Partly True’ respectively.
Remarks: Although the appraise does not have a clear understanding of what is expected of him
at the beginning of the year (Inference I), both appraisee and the appraiser know what his job is
all about. This also shows that although an employee knows what his current to do to be rated
higher by the reporting officer. The responsiveness in category of Partly True and Not True may
be due to the face that job content in Jindal Brothers is flexible and not well defined and most
people find it difficult to define their jobs. However, most of the people have a vague idea of the
scope of their jobs.
3. Employees regularly receive feedback about their potential for higher level jobs?
True 8 16
Partly true 7 14
Not true 35 70
70
60
50
Very true
40
30 True
20 Partly true
10 Not true
0
No. of Percentage
re-
sponses
Inference: 70% of the respondents agreed that the appraisal system did not helped them to know
their potential to perform at higher levels. Plan their performance well by saying that it was ‘Not
True’. Only 16% and 14% people felt that this statement was ‘True’ and ‘Partly True’.
Remarks: The above inference shows that the PA system in Jindal Brothers does not give
feedback about ‘planning for performance’ to its employees. It helps anticipating work needs in
order to arrange work in logical order. It also helps in devising efficient methods to attain pre-
determined plans. Again due to flexibility in job content, some people may have found problems
in planning their performance systematically.
4. Job rotation is practiced widely to help people develop their potential in new areas?
Very true 7 14
True 18 36
Partly true 25 50
Not true 0 0
50
40
30 Very true
True
20
Partly true
10
Not true
0
No. of Percentage
re-
sponses
Inference: About 50% of the respondents felt that the above statement was ‘Partly True’. It was
followed by 36% people feeling that it was ‘True’ with 14% believing that it was ‘Very True’.
Remarks: Job rotation is the most economical way of providing training to the employees. It
facilitates both organization and individual development. Job rotation gives an individual hand
on experience for carrying out various different functional activities. The performance appraisal
system should include this process in the training need identification performance.
5. The appraisal system provides an opportunity for self-review and reflection?
True
0 0
Partly true
13 26
Not true 37 74
80
70
60
50 Very true
40 True
30
Partly true
20
10 Not true
0
No. of Percentage
Re-
sponses
Inference : There is a general agreement on then fact that the PA system in Jindal Brothers does
provide ample opportunity for self-review and reflection. 74% of the people felt that
it was ‘Partly True’ with 26% agreeing.
Very true 0 0
True 4 8
Partly true 25 50
21 42
Not true
50
40
30 Very true
True
20
Partly true
10
Not true
0
No. of Percentage
Re-
sponses
Inference : 50% of the respondents believe that the above statement is ‘Partly
True’ This was closely followed by 42% of the respondents rating it as
‘Not True’ and 8% of the respondents feeling that it was ‘True’.
Very true 0 0
True 10 20
Partly true 26 52
14 28
Not true
60
50
40 Very true
30 True
20 Partly true
10 Not true
0
No. of Percentage
Re-
sponses
Inference : 52% of the respondents felt that the above statement was ‘Partly
True’. This was followed by 28% and 20% of the respondents
feeling that it was ‘Not True’ and ‘True’ respectively.
Very true 0 0
True 14 28
Partly true 22 44
14 28
Not true
45
40
35
30 Very true
25
20 True
15 Partly true
10
5 Not true
0
No. of Percentage
Re-
sponses
Inference : There was a mixed response to the given statement. 44% of the responses
consisted of “Partly True’ ratings. 28% respondents believed that this was
‘Not True’ whereas 28% believed that this was ‘True’.
Remarks : The above inference implies that Jindal Brother’s PA system does not score
well in the aspect of transparency in communicating an employee’s
performance through performance review and discussion. The discussions
between appraisal processes. The interaction on self appraisals is not a
common feature and is only done on certain occasions (exceptionally good or
bad performance etc.) The presence of 44% responses as “True” may be due
to good relationship and open communication shared by some of the
appraiser appraise pairs.
9. The performance appraisal provides an opportunity for self review and reflection?
50
40 very true
30
20 true
10 partly true
0
not true
No. of Percentage
Re-
sponses
Inference : Most of the respondents agreed that the appraisal system catered to their
development needs (50% believed that it was “Partly True”) and it was very
closely followed by 46% saying it was “Not True”. There were 4% cases,
which believed that it was ‘True’.
Remarks : Although the inference indicates that the PA system allowed mutuality, trust
and open communication between superior and subordinates, there may be
chances of biases in employees while rating this statement. The answers may
have varied depending on proximity etc.
10. The appraisal procedure allows the appraisee to express his developmental needs?
60
50 very true
40
30
True
20
10 partly true
0
not true
No. of Percentage
Re-
sponses
Inference : The most common response on above statement was an astounding ‘Not
True’ with 52% people agreeing that the PA system was free of any biases. It
was followed by 32% saying that it was ‘True’ and 16% saying that it was
‘Partly True’.
Remarks : The above inference implies that people are satisfied with the PA system in
Jindal Brothers and believe that it provides scope for developing their
potential. This may be due to the fact that the self appraised of the appraise
invites suggestions on job enrichment, training needs and steps to be taken to
improve individual’s effectiveness.
11. The system has scope to correct the biases of the assessor through a super review?
true 2 4
partly true 14 28
not true 34 68
70
60 very true
50
40
30 true
20
10 partly true
0
not true
No. of Percentage
Re-
sponses
Inference : 68% of the people rated the above statement as ‘Not True’ 28% believed it was
‘Partly True’ with 4% disagreeing by saying that it was ‘True’.
True 6 12
partly true 0 0
not true 44 88
90
80
70 very true
60
50
40 True
30
20 partly true
10
0
not true
No. of Percentage
Re-
sponses
Inference: An astounding 88% rated the above statement as not true with 12% that it was
true.
Remarks Although, most of the people felt that there was mutuality and trust between
appraiser and appraise, it may again depend on the proximity and relationship
shared by an employee and his/her boss. The ratings may be based, as the
employees may have felt that a negative answer may adversely affect them. The
reason behind this conclusion is that a low score on extent of communication and
discussion between appraisers and appraise and high score on mutuality and trust
give a contradictory view.
13. The procedure allows for the communication of CEO‘s goal to the workforce?
true 2 4
partly true 10 20
not true 38 76
80
70
very true
60
50
40
30 true
20
partly true
10
0
not true
No. of Percentage
Re-
sponses
Inference : The typical response in this case was ‘Not True’, by 76% of the respondents.
20% rated the above statement as ‘Partly True’ and 4% as ‘True’.
Remarks : Even if half of the respondents gave a mid-way answer, presence of 44%
‘Slightly True’ answers give a negative picture of the above statement. This
implies that the business goals are not well integrated with individual goals.
There is no direct linkage between the management plans and evaluation
criteria. This may be due to the fact that either the business goals are not
quantified enough or the management is not quick enough to communicate its
plans to the staff below.
14. The appraisal system brings out the training needs of the employees.
very true 0 0
True 3 6
partly true 22 44
not true 25 50
50
40 very true
30
20 True
10 partly true
0
not true
No. of Percentage
Re-
sponses
Inference : 50% of the respondents believed the above statement to be ‘Not True’ closely
followed by 44% people believing it to be ‘Partly True’. Only 6% believed it
to be ‘True’.
Remarks : A few people get the training related to their competencies skills that needs to
be enhanced for successful completion of their work. most of the people do
not get adequate training according to changes in their job description i.e.
responsibilities and KRAS.
15. The performance appraisal system clarifies the career prospects, aspirations and
intentions?
true 5 10
partly true 40 80
not true 40 80
80
70
very true
60
50
40
30 true
20
partly true
10
0
not true
No. of Percentage
Re-
sponses
Inference : The typical response (80%) for the above statement was ‘Not True’ 10%
employees believed it to be ‘Partly True’ with an equal 10% employees
believing if to be ‘Not True’.
Remarks : The general picture drawn from the above inference is that all the
employees are not clear as to what the PA system is all about and what is
the reason behind its existence. This shows that PA system has acquired an
important status in Jindal Brothers with all employees acknowledging its
presence and essence.
16. The appraisal system provides a rational basis for salary recommendations?
True 8 16
partly true 14 28
not true 28 56
60
50 very true
40
30
True
20
10 partly true
0
not true
No. of Percentage
Re-
sponses
Inference : 56% of the respondents felt that the above statement was ‘Not True’. 28%
responses included ‘Partly True’ ratings whereas 16% responses included
‘True’ ratings.
Remarks : The employees do not want a fixed increment for their great performance. The
company should make recommendations related to salary on the basis of
regular performance feedback about every employee since the frequency of
performance measurement varies from department to department, it is difficult
to carry out this work smoothly.
17. The company relates reward to your performance?
True 10 20
partly true 4 5
Not true 36 72
80
70
very true
60
50
40
30 true
20
partly true
10
0
not true
No. of Percentage
Re-
sponses
Inference :` Most of the respondents (72%) felt that the above statement was ‘Not True’.
20% believed it to be ‘True’ whereas a mere 8% felt that it was ‘partly True’.
Remarks : The company uses the reward system as a motivating force for enhancing the
performance of its employees. Rewards should be promptly given to high
achievers in terms of increment, promotions, increased job responsibilities etc.
for their accomplishment.
18. What kind of an appraisal system will bring out the best of an employee?
40
35
appraisal by all
30 superiors
25 appraisal by im-
20 mediate superior
15 appraisal by
10 reference team
5 appraisal by
reference team
0 and self.
No. of Percentage
Re-
sponses
Remarks : This shows that the relationship between appraiser and appraise, in Jindal
Brothers, with respect to planning the performance is quite good. The
subordinate in planning his performance. The appraiser helps the appraise
in testing the soundness of his goals as well as of his plans for achieving
them. This implies that there is active participation of both appraiser and
appraise in performance planning. The reason behind ‘Not True’ answer
may be due to the fact that many jobs in Jindal Brothers are not well
defined and therefore an elaborate planning on them is not done.
FINDINGS
1- Jindal Brothers is a young, dynamic organization and is going strong on the stock market.
2- The company is well aware of the dynamic environment of software, it is operating and
in order to keep it with the pace of the environment it believes in constant up gradation of
courses. Organization structure and design of the company is such that it supports this
change.
3- Jindal Brothers has a matrix kind of a structure wherein it takes the form of combination
of structures. Matrix structures are adopted became there is more than one factor around
4- This matrix structure at Jindal Brothers improves the quality of decision-making where
5- . This increases the motivation of the managers and development of wider involvement in
strategies. Although at times the company faces high risk of dilution of priorities became
Line Organization
It is the traditional type of organization. It refers to a direct chain of command from top to
bottom. In the line organization the lines of direction are straight and vertical. Authority and
responsibility flow vertically in an unbroken straight line from one level to another. Every
superior has complete command over his subordinate and every subordinate has to report his
work to only the senior or to the level above his own level.
1.)Personal Staff:
employed to carry out those responsibilities of an executive, which he cannot or does not want to
delegate to others.
2.)Specialized Staff:
It consists of specialists in different functional areas e.g. personnel, accounting, legal and public
relations etc. A specialized staff department serves as a fountainhead of expertise for the entire
concern.
3.)General Staff:
MANAGEMENT.
Complaint Handling As part of the process for capturing customer complaints and acting on
them, Jindal Brothers has procedures that ensure that each customer complaint is captured,
recorded and reported as part of a formal review system. The process includes related activities
such as escalation of a problem, tracking each complaint to closure, and creating new procedures
(or modifying existing ones) to prevent similar problems from repeating in the future.
Employee Excellence At Jindal Brothers they believe that they can build a world class
structures. Their vision document, which drives each employee as well as the organization itself,
reflects Jindal Brother's commitment towards customers and employees. Starting from the
recruitment process and culminating in annual reviews, Jindal Brothers has quality processes for
Recruitment For recruitment, Jindal Brothers administers various tests to the applicant. These
include aptitude tests, IQ tests, management tests, and personality tests. Each of the tests captures
different information about the individual so that Jindal Brothers can ensure that the person is
appropriate for the job and will fit into the company culture.
Goal Setting Before starting on the job, employees discuss their role and responsibilities with
their supervisors. This results in the setting of goals and objectives for each individual for the
coming year. This process clarifies the expectations from each individual during the year. Each
employee is expected to monitor his/her goals by filling in a focus report every month, which is
Training
Jindal Brothers recognizes the fact that the skills of employees need to be upgraded constantly.
Jindal Brothers trains each and every employee continually through the year. In fact, Jindal
Brothers has one of the highest training days per employee in the world: each Jindal Brothers
employee receives over 11 days of training each year. Jindal Brothers has an employee training
division which conducts in-home e, residential training programs exclusively for Jindal Brothers
employees.
While on the job, performance reviews of every employee are done every quarter. The reviews
are done with a view to helping the individual excel at his/her workplace. In case there are any
training requirements, these are noted and acted upon in the coming quarter. Also, the goals and
The performance appraisal mechanism is carried out at Jindal Brothers for promotional purposes
These are done so as to motivate the employee and improve his performance level. The method
is as follows:
d) After measuring of the actual performance, the same is compared with the standards set
f) And finally, if need arises corrective action is initiated. For this purpose the corrective action
all the Jindal Brothers. It is then measured as a tool to evaluate the past performances of the
employees.
3. Paired Comparisons
It is based on the performance level of the employee generally classified on the basis of:
Targets achieved
Thus we can observe that the appraisal system is not a biased one but based on performance and
productivity basis. All the respective heads of the employee together with the senior persons at
Thus the feedback given by these members at Jindal Brothers is considered under a holistic view
and then the employee is given a performance appraisal. This evaluation method involves 40%
feedback from the coworkers which says that the employee should not only maintain good
rapport with the senior or junior but majorly with the coworkers also.
3. Paired Comparisons
The evaluator compares all possible pairs of subordinates on their overall ability to do the job.
numerical scale that is anchored by the seniors of the organization at various centers. This is
highly confidential and the information is sent in sealed envelopes and opened only at the time of
the final evaluation. There is no further discussion regarding this scaling, thus it is not given
enough weightage.
SURVEY FINDINGS
In this section, basic data for a group of 100 employees from lower, middle, senior and top
Frequency and frequency percent scores were computed for each of the groups of the entire
selected variable.
Through the questionnaire it was found that promotions were and known to most of the top and
senior management while middle and lower management were a bit not clear about it. This could
be attributed to the fact that senior and top management were more involved in decision making
and policy formulation than are the middle and lower management.
Same reason could be attributed to the fact that code 1 managers were absolutely clear of what
was expected out of them every year, whereas 50% senior management ware clear or partly clear
about the same and the about 20% of middle management were not clear about it and still
further, the 71% of lower management was not aware of what was expected out of them every
year.
85% of code 4 employees said that they could express their reason of failure. The responses of
50% of Middle Managers were bit favorable whereas 100% senior management also thought that
they did not get the opportunity to express their cause of failure. The 60% of top management
were portly able to express their cause of failure. This may be because the appraisal system is
more of less performance based and human factor is by and large overlook. Whereas, at the
lower levels of the organization, performance can be quantified, and the managers are made
accountable at the higher echelons the tasks are too complex and therefore cannot be assessed on
the basis of quantified performance and therefore the top and senior management believed that
the promotions are also for motivation whereas the attitude wanes as the level of hierarchy goes
up. This is probably because of the appraisal of performance based on the quantity or results. If
the employee’s output is good of better they get promotions and also get motivation to achieve
better performance. At the higher levels the results are more of subjective nature therefore
Most of the managers feel that the mechanism for potential appraisal is not adequate. This may
As far as feedback is from superiors is concerned, most of the top and senior management were
of the view that they constantly receive feedback. This is because, they take decisions crucial to
the existence of the organization and therefore are closely watched and monitored as compared
Again the top management felt that they with their superior decide about their job but 100% of
senior management did not feel the same at all. This is because again due to power centeredness
and power difference in the organization, being a tall organization the superior are not accessible
to their subordinate.
60% of lower management thought that their creativity was definitely not adequately recognized
whereas the top management believed that the organization encouraged creativity. This
highlights the gap of communication in the organization and differences in the perception of
culture in the organization by different grades of employee. 70% of lower management thought
that the system was not free from biases and same is felt by most of the middle, senior and top
management. This shows that human instincts and behaviors influence the performance appraisal
system.
60% of lower management was not clear about the goals and objectives of the organization. Most
of top management thought that they were clear or very clear, about the organization goals. This
is because, the power distance is extent and communication system of the organization is not
very effective. This also shows that transparency is lacking in the system.
70% of lower managers thought that the performance appraisal system did not identify their
training needs. 80% of senior managers also thought the same. But the view of top management
differed in the sense that they felt that the system helped them surface their training needs. The
reason being that the training programmes are not fully developed and are not constantly
evaluated in the organization. The top management felt that there was a scope of super review.
The senior management also felt a bit the same but lower and middle management keep
attending meetings and had already developed rapport with their superiors and so could easily
talk out their appraisal results whereas this is not so for lower and middle management. They are
not able to approach their senior easily and are therefore could not appeal for super-reviews.
60% of lower managers said that they do not get opportunity for self review and reflection. This
is because performance appraisal is lacking human touch to it. The appraisals are entirely based
on performances, overlooking the cause of successes and failures. The appraisal system thus
does not meet individual’s developmental needs and also does not contribute to employee’s job
The organization believed that self appraisal is the best for managers and above.
essential.
The performance of the employees is not regularly monitor and the required feedback is provided
to the subordinates from time to time. The appraisals are conducted at fixed intervals. The
There was a neither formal nor informal discussion on job specification and tasks to be
There was no formal performance appraisal taking place till now in the organization. There fore,
there were no written records of such activity in the personal files of the employees. However
people were being appraised informally by the superiors and got promoted or incremented
accordingly.
It would not be wrong to say that interpersonal relations and personal biases (i.e. liking and
6. Organizational structure
RECOMMENDATIONS
1. To improve attendance there should be rewards for those employees who attains above
95% attendance.
2. There should be training sessions to improve team building.
3. There should be proper training for appraisal to the employees.
4. In the beginning of the year employee must know the performance standards on which
his/her performance will be judged in end of year.
5. More stress relieving packages should be offered to the mentally stressed staff.
6. Overtime should be taken care of at time of performance appraisal, which would motivate
the employees to perform better for longer hours.
Performance appraisal is the process of reviewing employee performance vis-à-vis the set
expectations in a realistic manner, documenting the review, and delivering the review verbally in
a face-to-face meeting, to raise performance standards year over year through honest and
constructive feedback. In the process management expects to reinforce the employee’s strengths,
identify improvement areas so that one can work on them and also set stretched goals for the
coming year.
I have undertaken a project on PERFORMANCE APPRAISAL SYSTEM. The information furnished by you
will help knowing the effectiveness of the present appraisal and reward system and if need be designing
of a new appraisal system. The data will be kept confidential and will be used for academic purpose
only.
1. In your company, the key competencies required for each job are already identified.
2. There are mechanisms that help employees develop their potential for the next rung of job.
3. Employees regularly receive feedback about their potential for higher level jobs
4. Job rotation is practiced widely to help people develop their potential in new areas.
5. Your company’s promotion policies are clearly defined and shared with all employees.
7. The appraisal system gives each appraisee an idea of what is expected of him next year?
8. It is designed to aid the appraisee and appraisers jointly understand the former’s job?
9. The performance appraisal provides an opportunity for self review and reflection?
10. The appraisal procedure allows the appraisee to express his developmental needs?
11. The system has scope to correct the biases of the assessor through a super review?
13. The procedure allows for the communication of CEO‘s goal to the workforce?
14. The appraisal system brings out the training needs of the employees.
15. The performance appraisal system clarifies the career prospects, aspirations and intentions.
16. The appraisal system provides a rational basis for salary recommendations.
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Bibliography
Kothari C.R., Research methodology methods & techniques, Wishwa Prakasan ublishing
Co. Ltd., New Delhi, Sixth edition 2001.
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