CHAPTER -1

INTRODUCTION TO TOPIC

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 INTRODUCTION TO TOPIC

Human Resources Management:

Human Resource Management (HRM) is the function within an organization that focuses
on recruitment of, management of, and providing direction for the people who work in the
organization. Human Resource Management can also be performed by line managers.

Human Resource Management is the organizational function that deals with issuesrelated
to people such as compensation, hiring, performance management, organization development,
safety, wellness, benefits, employee motivation, communication, administration, and training.

Human resource management (HRM) is the strategic and coherent approach to the
management of an organization's most valued assets - the people working there who individually
and collectively contribute to the achievement of the objectives of the business. The terms "human
resource management" and "human resources" (HR) have largely replaced the term "personnel
management" as a description of the processes involved in managing people in organizations. In
simple words, HRM means employing people, developing their capacities, utilizing, maintaining
and compensating their services in tune with the job and organizational requirement.

Human Resources Development:

Human Resource Development (HRD) is the framework for helping employees

develops their personal and organizational skills, knowledge, and abilities. Human Resource
Development includes such opportunities as employee training, employee career development,
performance management and development, coaching, mentoring, succession planning, key
employee identification, tuition assistance, and organization development.

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 The focus of all aspects of Human Resource Development is on developing the most
superior workforce so that the organization and individual employees can accomplish their work
goals in service to customers.
Human Resource Development can be formal such as in classroom training, a college
course, or an organizational planned change effort. Or, Human Resource Development can be
informal as in employee coaching by a manager. Healthy organizations believe in Human
Resource Development and cover all of these bases.

PERFORMANCE APPRAISAL SYSTEM

Once the employee is selected and trained for the job then the management would like to see how
he performs his work. It helps in evaluating the performance of the employees and in assessing the
hiring and training methods followed in an organization. The employees are recruited with some
objectives in mind, whether these have been achieved or not has to be regularly evaluated.
Performance appraisal is a process of evaluating an employee’s performance of a job in terms of
its requirements. Performance appraisal is also termed as merit rating or employee appraisal. It is
a systematic system to evaluate the person on job and to see if he can improve his performance in
future. This evaluation is normally done by the immediate superior in the organization which is
reviewed in turn by his superior.

Not only the qualities, but deficiencies are also evaluated to improve the performance of the
employees.

It is an established fact that people differ in their abilities and attitudes. The
evaluation of their performance is the most significant tool of an organization. This helps in
assessing work according to ability and capacity, spotting people for higher responsibility jobs,
and recognising training and developmental needs.

Performance appraisal should be done on the basis of certain standards or criterion

fixed in advance. The employees should also be in the know of the yardsticks to be used for
evaluating them. Unless a proper process is used for evaluation, it will not give good results.

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 Performance Appraisal can also be defined as the “process of evaluating the
performance and qualifications of the employees in terms of the requirements of the job for
which he is employed, for purposes of administration including placement, selection for
promotions, providing financial rewards and other actions which require differential
treatment among the members of a group as distinguished from actions affecting all
members equally.”

In other words, performance appraisal is a systematic, periodic and an impartial rating

of an employee’s performance on his present job and to his potentialities for his future job.

PROCESS OF PERFORMANCE APPRAISAL

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 ESTABLISHING PERFORMANCE STANDARDS
The first step in the process of performance appraisal is the setting up of the standards which
will be used to as the base to compare the actual performance of the employees. This step requires
setting the criteria to judge the performance of the employees as successful or unsuccessful and
the degrees of their contribution to the organizational goals and objectives. The standards set
should be clear, easily understandable and in measurable terms.

In case the performance of the employee cannot be measured, great care should be taken to
describe the standards.

 COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to communicate the standards to all the
employees of the organization.

The employees should be informed and the standards should be clearly explained to the This will
help them to understand their roles and to know what exactly is expected from them. The standards
should also be communicated to the appraisers or the evaluators and if required, the standards can
also be modified at this stage itself according to the relevant feedback from the employees or the
evaluators.

 MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the Performance appraisal process is measuring the actual performance
of the employees that is the work done by the employees during the specified period of time. It is
a continuous process which involves monitoring the performance throughout the year. This stage
requires the careful selection of the appropriate techniques of measurement, taking care that
personal bias does not affect the outcome of the process and providing assistance rather than
interfering in an employees work.

 COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard performance. The
comparison tells the deviations in the performance of the employees from the standards set. The
result can show the actual performance being more than the desired performance or, the actual
performance being less than the desired performance depicting a negative deviation in the

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organizational performance. It includes recalling, evaluating and analysis of data related to the
employees’ performance.

 DISCUSSING RESULTS
The result of the appraisal is communicated and discussed with the employees on one-to-one
basis. The focus of this discussion is on communication and listening. The results, the problems
and the possible solutions are discussed with the aim of problem solving and reaching consensus.
The feedback should be given with a positive attitude as this can have an effect on the employees’
future performance. The purpose of the meeting should be to solve the problems faced and
motivate the employees to perform better.

 DECISION MAKING
The last step of the process is to take decisions which can be taken either to improve the
performance of the employees, take the required corrective actions, or the related HR decisions
like rewards, promotions, demotions, transfers etc.

PRE-REQUISITES OF AN EFFECTIVE APPRAISAL PROCESS:

 Purpose of the job- The overall rate of the job from organization’s point of view; why the
job exists and what contribution it is expected to make.
 A statement of the key result areas that flow from the purpose of the job- statements of the
continuing end results and outcomes required of the job, statements which identify what
the job achieves and why.
 Having listed the key result areas, it is necessary to clearly state the objectives for the year.
These objectives must flow from the business, functional and unit plans.
 For objectives to invoke commitment, they must be agreed between the job holder andhis
boss and not set unilaterally.
 For objectives to be meaningful, they must be specific, measurable, attainable, relevant
and time bound.
 The appraisal process must focus on performance against agreed objectives, enable the
individual to give feedback to the organization his own feelings, aspirations, difficulties,
etc and serve as a forum for dialogue between the individual and the organization.

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 OBJECTIVES OF PERFORMANCE APPRAISAL

Data relating to performance assessment of employees are recorded, stored and used for seven
purposes. The main purposes of employee assessment are:

1. To effect promotions based on competence and performance.

2. To confirm the services of probationary employees upon their completing the probationary
period satisfactorily.

3. To assess the training and development needs of employees.

4. To decide upon a pay raise where (as in the unorganized sector) regular pay scales have
not been fixed.

5. To let the employees know where they stand insofar as their performance is concerned and
to assist them with constructive criticism and guidance for the purpose of their
development.

6. To improve communication. Performance appraisal provides a format for dialogue

between the superior and the subordinate, and improves understanding of personal goals
and concerns. This can also have the effect of increasing the trust between the rater and the
rate.

7. Finally, performance appraisal can be used to determine whether HR programmes such a

selection, training, and transfers have been effective or not.

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 RELEVANCE OF PERFORMANCE APPRAISAL

Performance Appraisal has been considered as the most significant an indispensable tool for an
organization, for the information it provides is highly useful in making decisions regarding various
personnel aspects such as promotion and merit increases. Performance measures also link
information gathering and decision making processes which provide a basis for judging the
effectiveness of personnel sub-divisions such as recruiting, selection, training and compensation.
Accurate information plays a vital role in the organization as a whole. They help in finding out the
weaknesses in the primary areas.

Formal Performance Appraisal plans are designed to meet three needs, one of the organization and
the other two of the individual namely:

 They provide systematic judgments to back up salary increases, transfers, demotions or

terminations.
 They are the means of telling a subordinate how he is doing and suggesting needed changes
in his behaviour, attitudes, skills or job knowledge. They let him know where he stands
with the Boss.
 Superior uses them as a base for coaching and counselling the individual.
On the basis of merit rating or appraisal procedures, the main objectives of Employee
Appraisal are:

 To enable an organization to maintain an inventory of the number and quality of all

managers and to identify and meet their training needs and aspirations.
 To determine increment rewards and to provide reliable index for promotions and
transfers to positions of greater responsibility.
 To suggest ways of improving the employees performance when he is not found to be up
to the mark during the review period.
 To identify training and development needs and to evaluate
effectiveness of training and development programmes.

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 METHODS OF PERFORMANCE APPRAISAL

The foregoing list of major program pitfalls represents a formidable challenge, even considering
the available battery of appraisal techniques. But attempting to avoid these pitfalls by doing away
with appraisals themselves is like trying to solve the problems of life by committing suicide. The
more logical task is to identify those appraisal practices that are (a) most likely to achieve a
particular objective and (b) least venerable to the obstacles already discussed.

Before relating the specific techniques to the goals of performance appraisal states at the outset of
the article. I shall briefly review each, taking them more or least in an order of increasing
complexity.

The best-known techniques will be treated most briefly.

ESSAY APPRAISAL
In its simplest form, this technique asks the rater to write a paragraph or more covering an
individual’s strengths, weaknesses, potential, and so on. In most selection situations, particularly
those involving professional, sales, or managerial positions, essay appraisals from former
employers, teachers, or associates carry significant weight.

GRAPHIC RATING SCALE

This technique may not yield the depth of an essay appraisal, but it is more consistent and reliable.
Typically, a graphic scale assesses a person on the quality and quantity of his work (is he
outstanding, above average, or unsatisfactory?) and on a variety of other factors that vary with the
job but usually include personal traits like reliability and cooperation. It may also include specific
performance items like oral and written communication.

FIELD REVIEW
The field review is one of several techniques for doing this. A member of the personnel or central
administrative staff meets with small groups of raters from each supervisory unit and goes over
each employee’s rating with them to (a) identify areas of inter-rater disagreement, (b) help the
group arrive at a consensus, and (c) determine that each rater conceives the standards similarly.

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FORCED-CHOICE RATING
Like the field review, this technique was developed to reduce bias and establish objective standards
of comparison between individuals, but it does not involve the intervention of a third party.

RANKING METHOD
The ranking system requires the rater to rank his subordinates on overall performance. This
consists in simply putting a man in a rank order. Under this method, the ranking of an employee
in a work group is done against that of another employee. The relative position of each employee
is tested in terms of his numerical rank. It may also be done by ranking a person on his job
performance against another member of the competitive group.

CRITICAL INCIDENT TECHNIQUES

Under this method, the manager prepares lists of statements of very effective and ineffective
behavior of an employee. These critical incidents or events represent the outstanding or poor
behavior of employees or the job. The manager maintains logs of each employee, whereby he
periodically records critical incidents of the workers behavior. At the end of the rating period, these
recorded critical incidents are used in the evaluation of the worker’s performance. Example of a
good critical incident of a Customer Relations Officer is: March 12 - The Officer patiently attended
to a customer’s complaint. He was very polite and prompts in attending the customers problem.

CHECKLISTS AND WEIGHTED CHECKLISTS

In this system, a large number of statements that describe a specific job are given. Each statement
has a weight or scale value attached to it. While rating an employee the supervisor checks all those
statements that most closely describe the behaviour of the individual under assessment. The rating
sheet is then scored by averaging the weights of all the statements checked by the rater. A checklist
is constructed for each job by having persons who are quite familiar with the jobs. These statements
are then categorized by the judges and weights are assigned to the statements in accordance with
the value attached by the judges.

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LIMITATIONS OF PERFORMANCE APPRAISAL

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 no 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 over effect

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.

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CONCEPTS RELATED TO PERFORMANCE APPRAISAL SYSTEM

TALENT MANAGEMENT

Talent management is a professional term that gained popularity in the late 1990s. It refers
to the process of developing and fostering new workers through on boarding, developing and
keeping current workers and attracting highly skilled workers at other companies to come work
for your company. Talent management in this context does not refer to the management of
entertainers.

Companies that are engaged in talent management (human capital management) are
strategic and deliberate in how they source, attract, select, train, develop, promote, and move
employees through the organization. This term also incorporates how companies drive
performance at the individual level (performance management).

The term talent management means different things to different people. To some it is about
the management of high-worth individuals or “the talented” whilst to others it is about howtalent
is managed generally – i.e. on the assumption that all people have talent which should be identified
and liberated.

This term is usually associated with competency-based human resource management

practices. Talent management decisions are often driven by a set of organizational core
competencies as well as position-specific competencies. The competency set may include
knowledge, skills, experience, and personal traits (demonstrated through defined behaviors).

Older competency models might also contain attributes that rarely predict success (e.g.
education, tenure, and diversity factors that are illegal to consider in many countries).

In the late 1990s, technology companies engaged in a ‘war for talent’.

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EMPLOYEE INVOLVEMENT

Definition: Employee involvement is creating an environment in which people have an impact

on decisions and actions that affect their jobs.

Employee involvement is not the goal nor is it a tool, as practiced in many organizations.
Rather, it is a management and leadership philosophy about how people are most enabled to
contribute to continuous improvement and the ongoing success of their work organization.

My bias, from working with people for 40+ years, is to involve people as much as possible
in all aspects of work decisions and planning. This involvement increases ownership and
commitment, retains your best employees, and fosters an environment in which people choose to
be motivated and contributing.

How to involve employees in decision-making and continuous improvement activities is

the strategic aspect of involvement and can include such methods as suggestion systems,
manufacturing cells, work teams, continuous improvement meetings, Kaizen (continuous
improvement) events, corrective action processes, and periodic discussions with the supervisor.

Intrinsic to most employee involvement processes is training in team effectiveness,

communication, and problem solving; the development of reward and recognition systems; and
frequently, the sharing of gains made through employee involvement efforts.

Employee Involvement Model

For people and organizations who desire a model to apply, the best I have discovered was
developed from work by Tannenbaum and Schmidt (1958) and Sadler (1970).

 Tell: the supervisor makes the decision and announces it to staff. The supervisor
provides complete direction.

 Sell: the supervisor makes the decision and then attempts to gain commitment from staff
by “selling” the positive aspects of the decision.

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  Consult: the supervisor invites input into a decision while retaining authority to make
the final decision herself.

 Join: the supervisor invites employees to make the decision with the supervisor. The
supervisor considers her voice equal in the decision process.

INDUSTRIAL RELATIONS

The term industrial relation in practice has come to mean primarily the relations between
the management and the unions in an industrial enterprise. It ought to include “employee
relations”, irrespective of whether a union exists in a particular unit or not.

We all know that unions came into being, since for ages an individual employee has tented
to be exploited by the employer. To be sure, most of us in India are even today partners in this
process of exploitation. The reference is to the institution of domestic servants, whether we look
at their wages, at their working hours or their health care and so on.

The same is by and large for labors employed on construction projects or on farms. It must
therefore be accepted that the trade unions does serve a social purpose through the practice of
collective bargaining.

It never pays to delay or postpone a constructive confrontation to demand performance be

it in the volume or quality of the output.

Law and penalties

Legislation, acts, regulations, standards, codes of practice, prosecutions, enforceable

undertakings, fines, improvement and prohibition notices

Rights and obligations

Your rights as a consumer, worker, employer, manufacturer, WHSO; manage your risks;
meet your obligations

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Workplace incidents and inspections

Notify of an incident, in an emergency, inspections, inspectors’ role, workers’

compensation

Training, licenses and registrations

Accreditation, training providers, tickets, licenses, plant registrations, seminars,

educational tools, apprenticeships and traineeships

Workers’ compensation and rehabilitation

Workers’ compensation and rehabilitation legislation, rights and obligations, other

jurisdictions, claiming workers’ compensation and rehabilitation

Publications and forms

Reports, research, newsletters, submissions, conference papers, codes and standards,

forms, blitzes, audits, subject index A-Z

MENTORING

More than ever before, organizations, large and small, are looking outside traditional
mentoring paradigms to raise the bar on the practice of mentoring by creating a mentoring culture.

A mentoring culture continuously focuses on building the mentoring capacity, competence,

and capability of the organization. A mentoring culture encourages the practice of mentoring
excellence by continuously:

 creating readiness for mentoring within the organization,

 facilitating multiple mentoring opportunities, and
 Building in support mechanisms to ensure individual and organizational mentoring success.

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 In a mentoring culture, eight hallmarks build on and strengthen each other. All are present, at
least to some degree; however they manifest themselves differently depending on the
organization’s previous success with mentoring.

The Eight Hallmarks of a Mentoring Culture

 Accountability. Accountability enhances performance and produces long-lasting results. It

requires shared intention, responsibility and ownership, a commitment to action and
consistency of practice. Accountability also involves very specific tasks:
--setting goals,
--clarifying expectations,
--defining roles and responsibilities,
--monitoring progress and measuring results,
--gathering feedback, and
--formulating action goals.

 Alignment. Alignment focuses on the consistency of mentoring practices within an institution’s

culture. It builds on the assumption that a cultural fit already exists between mentoring and the
organization and that mentoring initiatives are also are tied to goals larger than just initiating a
program. When mentoring is aligned within the culture, it is part of its DNA. A shared
understanding and vocabulary of mentoring practice exists that fits naturally with the
organization’s values, practices, mission, and goals.

 Communication. Communication is fundamental to achieving mentoring excellence and

positive mentoring results. Its effects are far-reaching; it increases trust, strengthens
relationships, and helps align organizations. It creates value, visibility and demand for
mentoring. It is also the catalyst for developing mentoring readiness, generating learning
opportunities, and providing mentoring support within an organization.

 Value and Visibility. Sharing personal mentoring stories, role modeling, reward, recognition,
and celebration are high leverage activities that create and sustain value and visibility. Leaders
who talk about formative mentoring experience, share best practices, and promote and support
mentoring by their own example add to the value proposition for mentoring.

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COMMUNICATION

Communication is one of the toughest issues in organizations. Effective communication

requires four components interworking perfectly for “shared meaning,” my favorite definition of
communication.

 The individual sending the message must present the message clearly and in detail, and
radiate integrity and authenticity.

 The person receiving the message must decide to listen, ask questions for clarity, and trust
the sender of the message.

 The delivery method chosen must suit the circumstances and the needs of both the sender and
the receiver.

 The content of the message has to resonate and connect, on some level, with the already-held
beliefs of the receiver.

With all of this going on in a communication, I think it’s a wonder that organizations ever do it
well.

Change management practitioners have provided a broad range of suggestions about how to
communicate well during any organizational changes.

LEADERSHIP AND MANAGEMENT

Leaders of organizations, especially people with high level titles and ownership positions,
establish and maintain the level of comfort that other employees experience when they are asked
to speak up. In most organizations, the willingness of employees, even managers, to speak up in
disagreement with the higher level person is appallingly bad. Why is this so? Is it because people
lack personal and professional courage at work? Or, are they too beholden to these executives for
their job?

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 In any case, it is the leader who establishes the tone and the work environment in which
people chooses – or chooses not – to exercise personal courage and freedom of expression. If the
leader has traditionally proved to be genuinely open to comments and criticism, people are willing
to agree, disagree, and express opinions.

The good leader, who wants to take advantage of the experience, knowledge, and
thoughtfulness of talented staff, remembers this. The good leader is aware of their power to
encourage or stifle opinions and debate. They use this power to genuinely appreciate and
encourage input, debate, and differing opinions.

JOB DESCRIPTION

Effectively developed, job descriptions are communication tools that are significant in your
organization’s success. Poorly written job descriptions, on the other hand, add to workplace
confusion, hurt communication, and make people feel as if they don’t know what is expected from
them.

Job descriptions are written statements that describe the duties, responsibilities, required
qualifications, and reporting relationships of a particular job. Job descriptions are based on
objective information obtained through job analysis, an understanding of the competencies and
skills required to accomplish needed tasks, and the needs of the organization to produce work.

Job descriptions clearly identify and spell out the responsibilities of a specific job. Job
descriptions also include information about working conditions, tools; equipment used knowledge
and skills needed, and relationships with other positions.

Still uncertain about the value of job descriptions? Consider these tips about employee job
descriptions.

Positives about Job Descriptions

Job descriptions provide an opportunity to clearly communicate your company direction
and they tell the employee where he or she fits inside of the big picture.

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 Whether you’re a small business or a large, multi-site organization, well-written job
descriptions will help you align employee direction.

Alignment of the people you employ with your goals, vision, and mission spells success
for your organization. As a leader, you assure the interfunctioning of all the different positions and
roles needed to get the job done for the customer.

Job descriptions set clear expectations for what you expect from people. According
to Ferdinand Fournies in Why Don’t Employees Do What They’re Supposed to Do and What to
Do about It, this is the first place to look if people aren’t doing what you want themto do. He says
you need to make certain that they clearly understand your expectations. This understanding starts
with the job description.

Job descriptions help you cover all your legal bases.

Whether you’re recruiting new employees or posting jobs for internal applicants, job
descriptions tell the candidate exactly what you want in your selected person.

Clear job descriptions can help you select your preferred candidates and address the issues
and questions of those people who were not selected.

Well-written job descriptions help organization employees, who must work with the person
hired, understand the boundaries of the person’s responsibilities.

People who have been involved in the hiring process are more likely to support the success
of the new employee or promoted coworker. Developing job descriptions is an easy way to involve
people in your organization’s success

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Establishment of performance appraisal criteria:

The most common appraisal criteria are traits, behaviors, competencies, goal
achievement, and improvement potential. The main objective of establishment of performance
criteria is to identify the aspects of a person's performance that an organization should evaluate.

• Traits: -

Certain employee traits such as attitude, appearance, and initiative are the basis for
some evaluations.

• Behaviors: -

When an individual's task outcome is difficult to determine, organizations may

evaluate the person's task related behavior or competencies. If certain behaviors result in
desired outcomes, there is merit in using them in the evaluation process.

• Competencies: -

This includes a broad range of knowledge, skills, traits, and behaviors that may be
technical in nature, relate to interpersonal skills or be business oriented.

• Improvement potential: -

When organizations evaluate their employees* performance, many of the criteria used
focus on the past. From a performance management view point the problem is that you cannot
change the past. Unless a firm takes further steps, the evaluation data become merely historical
documents. Therefore firms should emphasize the future, including the behaviors and outcomes
needed to develop the employee, and in the process achieve the firm's goals. This involves an
assessment of the employee's potential.

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• Goal achievement: -

If organizations consider ends more important than means, goal achievement

outcomes become an appropriate factor to evaluate.

Characteristics of an effective appraisal system:

The basic purpose of a performance appraisal system is to improve performance of

individuals, teams, and the entire organization. The system may also serve to assist in the making
of administrative decisions concerning pay increases, transfers, or terminations. In addition, the
appraisal system must be legally defensible. Organizations should seek an accurate assessment of
performance that permits the development of a plan to improve individual and group
performance.

The following factors assist in accomplishing these purposes;

• Job related criteria: -

Job relatedness is perhaps the most basic criteria in employee performance

appraisal. More specifically, evaluation criteria should be determined through job
analysis.

• Performance expectations: -

Managers and sub-ordinates must agree on performance expectations in advance of the

appraisal period. On the other hand, if employees clearly understand the expectations, they can
evaluate their own performance and may timely adjustments as they perform their jobs without
having to wait for the formal evaluation review.

• Standardization: -

Firm should use the same evaluation instrument for all employees in the same job
category- who work for the same supervisor.

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Trained appraisers: -
The individual or individuals who observe at least a representative sample of job
performance normally have the responsibility for evaluating employee performance. This person is
often the employee's immediate supervisor. Training should be given to these appraisers to ensure
accuracy and consistency. A training module posted on the internet or company intranet may serve
to provide information for managers as needed.

• Continuous open communication: -

Most employees have a strong need to know how well they are performing. A good
appraisal system provides highly desired feedback on a continuing basis. There should be few
surprises in the performance review.

• Performance reviews: -

A performance review allows them to detect any errors or omissions in the appraisal, or
an employee may simply disagree with the evaluation and want to challenge it. Constant employee
performance documentation is vitally important for accurate performance appraisal.

• Due process: -

Ensuring due process is vital. If the company does not have a formal grievance procedure, it
should develop one to provide a employees an opportunity to appeal appraisal results that they
consider inaccurate or unfair. They must have a procedure for pursuing their grievances and
having them addressed objective.

Appraisal Process

In Marvel Dyers & Process Pvt. Ltd. are following one of traditional method of
performance appraisal, that is critical incident method. But it is not helpful for the employees,
because it is older method.

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 NEED FOR THE STUDY

Appraising the performance of individuals, groups 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 an informal and integral part of daily activities.
Consciously of unconsciously evaluate our own actions from time to time. In social
interactions, performance is conducted a systematic and planned manner to achieve
widespread popularity in recent years.

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

performance through HRD. In fact, performance appraisal is the basis fore HRD. It was viewed
performance appraisal was useful to decide upon employee promotion / transfer salary
determination and the like.

But the recent developments in human resources 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.

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 IMPORTANCE OF THE STUDY

Performance appraisals provide employees and managers with opportunities to discuss

areas in which employees excel and those in which employees need improvement.
Performance appraisals should be conducted on a regular basis, and they need not be directly
attached to promotion opportunities.

Personal Attention

During a performance appraisal review, a supervisor and an employee discuss the

employee's strengths and weaknesses. This gives the employee individual face time with the
supervisor and a chance to address personal concerns.

Feedback

Employees need to know when their job duties are being fulfilled and when there are
issues with their work performance. Managers should schedule this communication on a
regular basis.

Career Path

Performance appraisals allow employees and supervisors to discuss goals that must be
met to advance within the company. This can include identifying skills that must be acquired,
areas in which one must improve, and educational courses that must be completed.

Employee Accountability

When employees know there will be regularly scheduled evaluations, they realize that
they are accountable for their job performance.

Communicate Divisional and Company Goals

Besides communicating employees' individual goals, employee appraisals provide the

opportunity for managers to explain organizational goals and the ways in which employees
can participate in the achievement of those goals.

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 CHAPTER - 2

REVIEW OF LITERATURE

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 REVIEW OF LITERATURE

Hiltrop (2010) evaluated the HRM practices of Multinational organizations i.e. those
organizations which operates in more than one country. This article differentiates between
multinational and domestic companies and also compared and contrasted the HRM practices of
multinational companies. The conclusions drawn from the study help to understand what strategies
multinational companies adopt to attract talent, its retention and how to motivate people and how
this varies between industries and nationalities of the corporate parent.

Bowen et al (2011) conducted a study of various countries on the role and importance assigned
to human resource management in an organization. The study was conducted on different
dimensions such as firstly how the status of HRM departments varies (e.g., perceptions of its
importance and involvement). Second, on whether there is crosscountry strategic HRM (SHRM)
in terms of the conventional contingency approach (linking HRM practices to strategy), as well
as a resource-based view of the firm (e.g., developing organizational capability as competitive
advantage).

John Simmons (2012) laid emphasis on the need for balancing performance, accountability and
equity in stakeholder relationships by pursuing socially responsible HR practice. The paper uses
stakeholder analysis to examine issues of performance, accountability and equity in organizations;
and to analyze the relationship with more socially responsible HR practice. Its theme is that
effective governance can be reconciled with social responsibility, and that incorporating
stakeholder views in HR systems enhances organization performance and commitment.

Sheth Hiral (2012) did a global IBM study on human capital that provided a deep insight into the
issues related to HR practices. A surprising trend that emerged demonstrated a disparity in HR
practices between upcoming and developing markets. He observed that the human resource team
is more active and takes care of employee needs in an emerging or upcoming market thanin a
maturing or developing market. In a maturing market, the HR function became more
institutionalized i.e. more tilted towards the organizational needs and less focused on the individual
employee. According to the study, the build strategy is a better option in the long

26
term, than buy talent strategy. However a balance between the two is the best approach. It was
found in the study that companies that invested in building talent, has higher profits per employee
as compared to organizations who buy talent.

Rosenberg, Marc J. (2013) discusses that training organizations, will have to focus far more on
the workplace rather than just the theoretical knowledge, and learning should be such to help
people on the job. Training organizations will have to become more diversified in their approach.
They will need to find new technologies and approaches for training organizations formal and
informally. It is essential to focus on how the processes and tools of work can be made easier, from
the start. He says, “Only these things will help in sustaining good performance of the employees.

Hanif Khaki (2014) is of the view that, today human resources management is opening up new
avenues around the world. Thus the demand for experienced human resource has increased. Today
businessmen have understood the value of hiring professionals with experience working in HR.
The companies have learned the importance of good relations with their workforce. The fact is that
Human Resource Management exists just for this purpose –to bridge the gap between employee
and employer. The company which does not realizes the importance of its human resource cannot
progress. The employee also likes an organization which cares for them and rewards their services
accordingly. Examples of this begin at the most basic level of appreciation.

Plessis & Huntley (2015) there has been a move from personnel management PM to human
resource management HRM; more recently to international human resource management IHRM.
Challenges in IHRM involve the same activities as domestic HRM; the main difference is that
domestic HRM is involved with employees within only one national boundary. IHRM assists
organizations to best utilize their HR in the international context. Since multinational activities are
involved in HRM, it is believed that IHRM is more complex than domestic HRM.

Thite & Wilkinson (2014) The rapid rise of multinational Corporations (MNCs) from emerging
economies has led to greater interest and urgency in developing a better understanding of the
deployment and diffusion of managerial strategies from their perspective and without assuming
the prevailing Western ethnocentric orthodoxy. This paper develops a conceptual framework of

27
global HR strategies and practices in MNCs from emerging economies across their subsidiaries
in both developed and developing markets. Using data from a pilot study of an Indian MNC, it
provides insights and guidance into the motives, strategic opportunities and constraints in cross
national transfer of HR policies and practices in a multi-polar world.

Boedker et. al.(2016) This research report aims to open up the ‘black box’ of management and
provides insights into the leadership, culture and management practices that higher performing
workplaces deploy and benefit from. It also illustrates the productivity and profitability benefits
that accrue to higher performing workplaces. It is part of a 2.5 year project funded by the
Department of Education, Employment and Workplace Relations to the Society for Knowledge
Economics in December, 2009. It shows that HPWs consistently outperform the rest both in
regards to managing their intangible assets and their productivity and profitability.

Roche & Teague (2018) The research conducted in this study reveals the advent of HR functions
that have commonly avoided radical reconfiguration or depletion of resources and that have gained
new influence as ‘business partners’, mainly on foot of a ‘hard’ HR agenda dictated by primarily
short-term responses to acute commercial challenges. The basis of HR’s new-found centrality to
business is manifestly the increased dependency of firms on HR expertise and knowledge in
successfully introducing controls or reductions in areas like pay and headcount and related changes
in working-time regimes and work practices.

Bowra, Sharif (2019) The main endeavor of this study is to examine the relationship and nature
of relationship between the employee perceived performance and human resource (HR) practices
(compensation, performance evaluation, and promotion practices) in the banking sector of
Pakistan. Survey of 235 banking personnel was conducted through personally administrated
questionnaire to investigate the impact of HR practices on employees’ perceived performance.

28
 CHAPTER – 3

OBJECTIVE OF THE STUDY

29
 OBJECTIVES OF THE STUDY

 To study the method of performance appraisal.

 To make data analysis and interpretation base on perception of the employee in the

organization.

 To summarize and find certain suggestions for the important of performance appraisal system

in the company.

 To analyse the employees awareness towards the present appraisal system.

30
 CHAPTER-4
RESEARCH METHODOLOGY

31
 RESEARCH METHODOLOGY

RESEARCH DESIGN:
A Research design is the arrangement of conditions for collection and analysis of data in a manner
that aims to combine relevance to the Research purpose with economy in procedure. In fact the
Research design is the conceptual structure within which Research is conducted: it constitutes the
blueprint for the collection measurement and analysis of data.
It must be able to define clearly what he wants to measure and must find adequate methods for
measuring it along with a clearly cut definition of population he wants to study. Since the aim is
to obtain complete and accurate information in the said studies, the procedure to be used must be
carefully planned. The research design must make enough provision for protection against bias
and must maximise reliability with due concern for the economical completion of the research
study.
Descriptive research is adopted for this study. It includes surveys and fact finding enquires of
different kinds. The major purpose of descriptive research is description of the state of affairs as
it exists at present. The main characteristic of this method is that the researcher has no control over
the variables. He can only report what has happened or what is happening.

SAMPLING DESIGN
A sample design is a definite plan for obtaining a sample from the sampling frame, it refers to the
technique or procedure the researcher would adopt in selecting some sampling units from which
Interpretations about the population is drawn.

POPULATION AND SAMPLE SIZE

A decision has to be taken concerning a sampling unit before selecting sample. The population for
this study includes the employees of Only 100 employees were undertaken for the study. In this
study the population and sample are not equal.

32
DATA COLLECTION
The task of data collection begins after a research problem has been defined and research design
/ plan chalked out. While deciding about the method of data collection to be used for the study,
the researcher should keep in mind two types of data viz,
 Primary and
 Secondary

PRIMARY DATA
The primary data are those which are collected afresh and for the first time and thus happen to be
original in character. The tool used for collecting primary data is a structured questionnaire.

SECONDARY DATA
The secondary data on the other hand are those which have already been collected by someone
else and which have already been passed through the statistical process. The secondary data has
been collected from the company records, journals. The secondary data collected for this research
was obtained from journals, magazines, company reports and websites

STATISTICAL TOOLS
Percentage Analysis
It refers to a special kind of ratio. Percentage is used in making comparison between two or more
series of data; percentages are used to determine relationship between the series if data finding the
relative differences becomes easier through percentage.
It is expressed as,

Percentage (%) = No. of respondents x 100

Total no. of respondents

33
Limitations
Every scientific study has certain limitations and the present study is no more exception.
These are:

1. The terminology used in the subject is highly technical in nature and creates a lot
of ambiguity.
2. All the secondary data are required were not available.
3. Respondents were found hesitant in revealing opinion about supervisors and
management.

34
 CHAPTER-5
DATA ANALYSIS
AND
INTERPRETATION

35
 DATA ANALYSIS AND INTERPRETATION

Gender wise classification of respondents

Table Gender Wise Classification of Respondents
Gender No. of respondents Percentage (%)
Male 90 90
Female 10 10
Total 100 100

Figure Gender wise classification of respondents

10%

Male
Female

90%

INTERPRETATION:
From the above table, it can be inferred that 90% of the respondents are male and 10% of the
respondents are female.

36
Age wise classification of Respondents
Table Age Wise Classification of Respondents
Age No. Of Respondents Percentage (%)
20 – 25 Age 24 24
30– 35 Age 34 34
40 – 45 Age 30 30
Above – 45 Age 12 12
Total 100 100

Figure Age Wise Classification of Respondents

34
30

R 24
E
S
P
O
N 12
D
E
N
T
S

20 – 25 Age 30– 35 Age 40 – 45 Age Above – 45 Age

RESPONDENTS AGE

INTERPRETATION:
From the above table, it can be inferred that 34% of the respondents are in the age between 30–
35, 30% of the respondents are in the age between 40 – 45, 24% of the respondents are in the age
between 20 – 25 and 12% of the respondents are in the age above

37
Experience Wise Classification of Respondents
Table Experience Wise Classification of Respondents
Experience No. Of Respondents Percentage (%)
Below 5 years 28 28
5-10 years 54 54
10 – 15 years 18 18
Above 15 years 0 0
Total 100 100

Educational Qualification of respondents

Table Educational Qualification of respondents
Educational Qualification No. Of Respondents Percentage (%)
UG Degree 50 50
PG Degree 18 18
Diploma 4 4
Others 28 28
Total 100 100

38
 Figure Educational Qualification of respondents

50
R
E
S
P
O
N 28
D
E 18
N
T
S

UG Degree PG Degree Engineering Others(iti)

EDUCATIONAL QUALIFICATION

INTERPRETATION:
From the above table, it can be inferred that 50% of the respondents are UG degree holders, 28%
of the respondents are some others (iti), 18% of respondents are PG degree holders and 4% of the
respondents are engineering graduates.
Figure Experience wise classifications of Respondents

39
 54
R
E
S
P
O
N 28
D
E 18
N
T
S

Below 5 Years 5-10Years 10 – 15 Years Above 15Years

EXPERIENCE

INTERPRETATION:
From the above table, it can be inferred that 54% of the respondents are having 5-10 years
experience persons, 28% of the respondents have below 5 years of experience persons, 18% of the
respondents are having 10–15 years of experience and no respondents have experience more than
15 years.

40
Performance appraisal are usually conducted every.
Table Time period of performance appraisal
Option No. Of Respondents Percentage (%)
3 months 12 12
6 months 50 50
9 months 12 12
1 year 26 26
Total 100 100

Figure Time period of performance appraisal

60%

50%
50%

40%
Respondents

30% 26%

20%
12% 12%
10%

0%
0%
3 months 6 months 9 months 1 year Any other
Time period of performance appraisal

INTERPRETATION:
From the above figure it can be conclude that the 50% of the respondents says that performance
appraisal should be conducted every 6 months in their organisation, While 26% of them says that
performance appraisal conducted every year 12% of them replied that their organisation conducted
performance appraisal system every 3 months and 9 months both respectively.

41
Is the performance based on job analysis?
Table Performance based on job analysis
Option No. Of Respondents Percentage (%)
Yes 62 62
No 22 22
Cannot say 16 16
Total 100 100

Figure Performance based on job analysis

70%
62%
60%

50%
Respondents

40%

30%
22%
20% 16%

10%

0%
Yes No Cannot say
Performance based on job analysis

INTERPRETATION:
From the above table, it can be inferred that 62% of the employees of says that their organisation
measure their performance based on job analysis, while 22% of them says no and 16% employees
cannot says about above statement.

42
Do you think that present performance appraisal is effective?
Table Effectiveness of present performance appraisal
Option No. Of Respondents Percentage (%)
Yes 66 66
No 18 18
Cannot say 16 16
Total 100 100

Figure Effectiveness of present performance appraisal

70% 66%

60%

50%
Respondents

40%

30%

20% 18%
16%

10%

0%
Yes No Cannot say
Effectiveness of present performance appraisal

INTERPRETATION:
From the above table, it can be inferred that 66% of the employees are satisfied with effectiveness
of present performance appraisal system. They also replied that the implementation of Performance
appraisal system is much effective rather than other companies, while 18% employees says no and
next 16% of them cannot say about the above statement.

43
Performance appraisal regarding promotions should be based on.
Table Employees opinion regarding performance appraisal regarding promotions
Option No. Of Respondents Percentage (%)
Seniority 58 58
Merit 26 26
Training 6 6
Experience 8 8
Qualification 2 2
Total 100 100

Figure Employees opinion regarding performance appraisal regarding promotions

70%

60% 58%

50%
Respondents

40%

30% 26%

20%

10% 8%
6%
2%
0%
Seniority Merit Training Experience Qualification
Performance appraisal regarding promotions should be based on.

INTERPRETATION:
From the above table, it can be inferred that 58% of the employee replied that Seniority based
performance appraisal promotion in their organisation instead of merit, training, experience and
qualification.

44
Feedback is communicated the appraisal.
Table Time duration for conducted feedback of performance appraisal
Option No. Of Respondents Percentage (%)
Immediately after completion 0 0
Within 15 days 76 76
More than a month 24 24
Not communicated 0 0
Total 100 100

Figure Time duration for conducted feedback of performance appraisal

80% 76%

70%

60%
Respondents

50%

40%

30% 24%
20%

10%
0% 0%
0%
Immediately after Within 15 days More than a Not
completion month communicated

Time Duration
INTERPRETATION:
From the above table, it can be inferred that 76% of the employee says that with 15 days their
organisation communicate them for feedback of performance appraisal, where 24% employee says
that their organisation taking more than a month period for feedback of performance appraisal
system.

45
Do you receive any increment in your salary after performance appraisal?
Table Number of employees received increment in salary after performance appraisal.
Option No. Of Respondents Percentage (%)
Yes 42 42
No 58 58
Total 100 100

Figure Number of employees received increment in salary after performance appraisal.

70%

60% 58%

50%
42%
Respondents

40%

30%

20%

10%

0%
Yes No
Number of employees received increment in salary after performance
appraisal.

INTERPRETATION:
From the above table, it can be inferred that 42% of the employees received increment in salary
after performance appraisal, while 58% of them does not received any increment in salary after
performance appraisal. Few number of employees also received incentives and bonus after
performance appraisal.

46
Since participating in the performance appraisal process, I feel move motivated &
developed as a profession.
Table Employees feel motivated and developed as a profession after participating in performance
appraisal.
Option No. Of Respondents Percentage (%)
Strongly Agree 8 8
Agree 56 56
Neutral 26 26
Disagree 10 10
Strongly Disagree 0 0
Total 100 100

Figure Employees feel motivated and developed as a profession after participating in

performance appraisal.

60% 56%

50%
Respondents

40%

30% 26%

20%
8% 10%
10%
0%
0%
Strongly Agree Neutral Disagree Strongly
Agree Disagree

Employees feel motivated and developed as a profession after

participating in performance appraisal.

INTERPRETATION:
From the above table, it can be inferred that more than half percentage (56%) of the employees
agree with fact that they feel motivated and developed as a profession after participating in
performance appraisal, whereas 26% of them neither agree nor disagree, 10% disagree and least
8% of them strongly agree with above opinion.

47
Is performance appraisal helps you in promoting career growth?
Table Employees opinion regarding performance appraisal help in promoting career growth
Option No. Of Respondents Percentage (%)
Strongly Agree 64 64
Agree 19 19
Neutral 15 15
Disagree 2 2
Strongly Disagree 0 0
Total 100 100

Figure Employees opinion regarding performance appraisal help in promoting career

growth

70% 64%
60%
50%
Respondents

40%
30%
19%
20% 15%
10%
2% 0%
0%
Strongly Agree Neutral Disagree Strongly
Agree Disagree

Promoing Career Growth

INTERPRETATION:
From the above table, it can be inferred that large portion of the total population strongly agree
that performance appraisal helps in promoting career growth, while 19% of them agree, 15%
neither agree nor disagree and only 2% of the employees disagree that performance appraisal never
promoting their career growth. They are dissatisfied with performance appraisal system.

48
Are you aware of the objective of Performance Appraisal system?
Table Awareness about objective of performance appraisal system
Option No. Of Respondents Percentage (%)
Yes 96 96
No 4 4
Total 100 100

Figure Awareness about objective of performance appraisal system

120%

100% 96%

80%
Respondents

60%

40%

20%
4%
0%
Yes No
Awareness about objective of performance appraisal system

INTERPRETATION:
From the above table, it can be inferred that highest percentage (96%) of total sample size having
fully awareness about objectives of performance appraisal system in, whereas only 4% employees
are not aware about objectives of performance appraisal system.

49
Do you think that performance appraisal system is transparent and free bias?
Table Number of employee thinks that performance appraisal system is transparent and freebias.
Option No. Of Respondents Percentage (%)
Yes 62 62
No 34 34
Cannot say 4 4
Total 100 100

Figure Number of employee thinks that performance appraisal system is transparent and free bias.

70%
62%
60%

50%
Respondents

40% 34%

30%

20%

10%
4%
0%
Yes No Cannot say
Performance Appraisal System is Transparent and free bias.

INTERPRETATION:
From the above table, it can be inferred that 62% of them employees think that present performance
appraisal system in is transparent and free bias, whereas other hand 34% portion of employees
dissatisfied with present performance appraisal system and they says no that performance appraisal
system of is not transparent and free bias and remaining 4% of the employees cannot say something
above question.

50
What methods are being used for performance appraisal?
Table Method used for performance appraisal
Option No. Of Respondents Percentage (%)
Force choice distribution method 36 36
Easy Method 0 0
Ranking method 38 38
Critical incident method 10 10
Any other 16 16
Total 100 100

Figure Method used for performance appraisal

45%
38%
40%
36%
35%
30%
Respondents

25%
20%
16%
15%
10%
10%
5%
0%
0%
Force choice Eassy Method Ranking Critical Any other
distribution method incident
method method
Method used for performance Appraisal

INTERPRETATION:
From the above table, it can be inferred that ranking method is main method of performance
appraisal, which is followed by instead of other method like force choice distribution method,
critical incident method and any other method like 3600 performance appraisal method.

51
Is 3600evaluation process undertaken in the organisation?
Table evaluation process undertaken in the organisation
Option No. Of Respondents Percentage (%)
Yes 36 36%
No 64 64%
Total 100 100

Figure evaluation process undertaken in the organisation

70%
64%

60%

50%
Respondents

40% 36%

30%

20%

10%

0%
Yes No

3600 appraisal process undertaken in the company

INTERPRETATION:
From the above table, it can be inferred that 64% of the employees agree that DESIGN WORLD
not used 3600 evaluation process, whereas 36% of them says that their company used 360 0
evaluation process.

52
If yes, from when?
Table showing time period for using 3600evaluation process used in company
Option No. Of Respondents Percentage (%)
Recently 36 100%
More than 1 year 0 0%
Less than 1 year 0 0%
Since the inspection of 3600process 0 0%
Total 36 100

Figure Time period for using 3600evaluation process used in company

120%

100%
100%

80%
Respondents

60%

40%

20%

0% 0% 0% 0%

Recently More than 1 year Less than 1 year Since the

inspection of 360
3600 appraisal process undertaken in the company process

INTERPRETATION:
From the above table, it can be inferred that all the respondents replied that their company recently
used 3600evaluation process. 3600 evaluation process method is the most successful method of
performance evaluation in recent years.

53
What kind of remedial measures are taken for battlement of the employee after
evaluation are done?
Table Kind of remedial measures
Option No. Of Respondents Percentage (%)
Job rotation 29 29%
Sent to training programmes 38 38%
Counseled 23 23%
Any other 0 0%
Total 100 100

Figure Kind of remedial measures

40% 38%

35%

30% 29%
Respondents

25% 23%

20%

15%

10%

5%
0%
0%
Job rotation Sent to training Counseled Any other
programmes
Kind of remedial measures

INTERPRETATION:
From the above table, it can be inferred that training programmes is main remedial which is used
by DESIGN WORLD for betterment of Employees instead of other remedial measures.

54
CHAPTER-6
FINDINGS AND
SUGGESTIONS

55
FINDINGS
 Majority (90%) of respondents are male.
 Most of the respondents (34%) belong to the age group of 30 to35.
 54% of the respondents have above 5 to 10 years of work experience.
 Majority (50%) of the respondents are under graduates.
 All the employees agree that there organisation followed performance appraisal system to
measure performance of employees.
 Majority of the employees fully aware about performance appraisal system.
 Half percentage of the respondents says that performance appraisal should be conducted
every 6 months in their organisation.
 Most of the employees of says that their organisation measure their performance based on
job analysis method and objective criteria is well defined in performance appraisal system.
 Near about one fourth proportions (80%) of the employee agree that the performance
appraisal system is necessity for their organisation.
 Employees are satisfied with effectiveness of present performance appraisal system in rather
than other companies.
 Most of the employee says that within 15 days their organisation communicate them for
feedback of performance appraisal.
 Majority of the employees received increment in salary after performance appraisal and few
number of employees also received incentives and bonus after performance appraisal.
 More than half percentage (56%) of the employees agree with fact that they feel motivated
and developed as a profession after participating in performance appraisal.
 Large portion of the total population strongly agree that performance appraisal helps in
promoting career growth.
 Highest percentage of total sample size having fully awareness about objectives of
performance appraisal system.

56
 Ranking method is main method of performance appraisal, which is followed by Shivay
Hosiery Factory instead of other method like force choice distribution method, critical incident
method and any other method like 3600 performance appraisal method.
 More than sixty two percentages (62%) of the employees rated outstanding to the overall
assessment of performance appraisal in the company.
 All the respondents replied that their company recently used 360 0 appraisal process. 3600 -

appraisal process method is the most successful method of performance appraisal in recent
years.
 Training programmes is main remedial which is used by for betterment of Employees instead
of other remedial measures.

57
SUGGESTIONS

 Performance appraisal could be conducted by an person inside the organisation and one who
is familiar with the employees.
 Objective of conducting the performance appraisal could be discussed and doubts can be
clarified.
 Performance appraisal could be updated regularly to match individual and organisational
goals.
 Suggestion could be obtained from employees regarding framing the performance appraisal
system.
 Since the performance appraisal is conducted by the outsider, employees’ suggestion during
performance appraisal may not reach the top managers. For such situations suggestion box can
be implemented and frequently reviewed.
 The appraiser must be familiarized with the employee’s job responsibilities and duties before
conducting performance appraisal.
 Feedback on performance could be discussed through formal or informal meetings. This may
enhance the involvement and performance of employees.
 Appropriate and experienced appraiser can be appointed for effective performance appraisal
results.
 Performance appraisal can developed in such a way to identify the hidden talent and skills of
employees.
 Employees having low performance could be called individually, encouraged and monitored
closely to make improvements.

Appraisal feedback is very important in any performance appraisal program. It could be

carefully communicated by making high performers’ increase their target and low
performers to build up their confidence.

58
 CHAPTER-7
LIMITATIONS OF THE
STUDY

59
 LIMITATIONS OF THE STUDY

The officials of personal department and the employees who were selected for the filling up of the
questionnaire, extended full cooperation and provided maximum possible information’s for the
success of this project. It was also known that the current system practiced in Industries is an
important area identify by the top management for further improvement. like any other
organizations has its’ own limitations and obligations which may be the inhabiting factor for the
improvements. Also there seems to be lacuna in the existing system, whereby the appraiser is
facing difficulty to compensate and democrat clearly too outstanding performance.
There are certain limitations, which has been traced in the system: -
 Appraising the performance of subordinates is considered to be paperwork and only be done
as annual exercise, which gives birth to the December effect, according to which employees’
performance is rated on his recent performance.
 There is no clear description of goals and duties which are to be performed by employees; there
is full need of spelling of definite standard of targets, because it would give the employees
proper direction and motivation to perform better.
 The main limitation of the study is the availability of time. As the sufficient time was not
available for collection of information.
 Some respondent were not interested in giving answers and they appeared to be busy.
 Lack of experience.

60
CHAPTER-8

CONCLUSION

61
 CONCLUSION

Performance appraisal may be understood as the assessment of an individual’s performance in a

systematic way. The performance being measured against such factors as job knowledge, quality
and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation,
judgement, versatility, health and the like. It is also help the developing the strengths & weakness
of the employees have been conducting performance appraisal for the past twenty years. From the
study it has been identified that the performance appraisal is able to identify employees’ potential
and find the motivating factors of employees. The major drawback is in terms of the appraiser and
his knowledge regarding employees job responsibilities and duties has been running successfully
for past Nine years and has created a good name among its customers and society. People having
poor background are given training and provided with jobs. Performance appraisal can be
conducted more effectively by using the right tools and properly reviewing and updating the
performance appraisal program. Suggestion form employees and experienced personnel can
further enhance and make the performance appraisal an ideal evaluation system.

62
BIBLIOGRAPHY

63
 BIBLIOGRAPHY

 Performance Management, Concepts, Practices and Strategies for Organisation success by
S. K. Bhatia,Deep & Deep Publications Pvt. Ltd, 2008.
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Publication, 2007.
 Kothari, C.R., Research Methodology - Methods & Techniques , New Delhi, New Age
international (P) Ltd., Publishers, Second Edition,2005.
 Statistical Methods for Management, By P.N. Arora & S.Arora New Delhi, Sultan Chand &
Sons Publishers, 2005.
 Sanwong, K (2008). The Development of a 360-Degree Performance Appraisal System: A
University Case Study, International Journal of Management, Vol.25, No.1, pp.16-21.
 Kathlyn Y. Wilson and Jones R.G. (2008). Reducing job-irrelevant bias in performance
appraisals: compliance and beyond”, Journal of General Management, Vol. 34, No. 2, pp.57-
70.
 Nicolas P.B. Bollen and Robert E. Whaley (2009). Hedge fund risk dynamics: Implications
for Performance Appraisal”, The Journal of Finance, Vol. LXIV, No. 2, 985-1035.

JOURNAL
 Brutus, S., Fletcher, C., and Baldry C., (2009). The influence of independent selfconstrual on
rater self-efficacy in performance appraisal, The International Journal of Human Resource
Management, Vol. 20, No. 9, pp.1999–2011.
 Grund, C., and irk Sliwka, D., (2009). The anatomy of performance appraisals in Germany,
The International Journal of Human Resource Management, Vol. 20, No. 10, pp.2049–2065.
 Herdlein, R., Kukemelk, H., and Turk, K., (2008). A survey of academic officers regarding
performance appraisal in Estonian and American universities”, Journal of Higher Education
Policy and Management, Vol. 30, No. 4, pp. 387–399.
 Narcisse, S., and Harcourt, M., (2008) Employee fairness perceptions of performance

appraisal: a Saint Lucian case study, The International Journal of Human Resource
Management, Vol. 19, No. 6, pp.1152–1169.
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Zhang, Y., and Lovegrove, I., (2009). Performance appraisal for Chinese state-owned banking
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200.
 Vasset, F., (2010). Employees' perceptions of justice in performance appraisals”, Nursing
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 Ravichandran S., Venkataraman R., and Banumathy V., (2008) Study on Performance
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WEBSITE
 http://www.jobaccess.gov.au/JOAC/Employers/Recruiting_new_staff/The_recruitment_proc
ess/Job_description_and_desig.htm
 http://www.openlearningworld.com
 http://unjobs.org/tags/job-design
 http://ezinearticles.com/?Job-Performance-and-Satisfaction&id=290072
 www.usa.edu.pk/Web/Publications/PDF/Occupational%20stress%20and%20Job%20Perfor
mance

65
QUESTIONNAIRE

66
 QUESTIONNAIRE

1. Gender : ( ) Male Female ( )

2. Age group : ( ) 20 – 30
( ) 31 – 40
( ) 41 – 50
( ) 51 – 60
3. Experience : ( ) Less than 3 years
( ) 4-8 Years
( ) 9 – 15 Years
( ) More than 15 Years
4. Qualification : ( ) UG Degree
( ) PG Degree
( ) Diploma
( ) Others
5. Is there performance appraisal system existing in organization?
Yes  No 


6. Are you aware of the performance appraisal system in your organisation?
Fully aware  Partially Aware 
Not at all aware 


7. Performance appraisal are usually conducted every.
3 months  6 months 
9 months  1 year 

8. Is the performance based on job analysis?

Yes  No 
Cannot say 

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 9. Is the performance appraisal based on well-defined objective criteria?
Yes  No 


10. Do you think that present performance appraisal is effective?
Yes  No 
Cannot say 


11. Performance appraisal regarding promotions should be based on.
Seniority 
Merit 
Training 
Experience 
Qualification 

12. The feedback in appraisal, if communicated, by whom it is done?

Training office  Concerned controlling office 
Superior  Any other manager 
Supervisor 
13. Do you receive any increment in your salary after performance appraisal?
Yes  No 
14. Since participating in the performance appraisal process, I feel move motivated &
developed as a profession.
Strongly Agree  Agree 
Neutral  Disagree 
Strongly Disagree 
15. Is performance appraisal helps you in promoting career growth?
Strongly Agree  Agree 
Neutral  Disagree 
Strongly Disagree 

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 16. Are you aware of the objective of Performance Appraisal system?
Yes  No 


17. Do you think that performance appraisal system is transparent and free bias?
Yes  No 
Cannot say 


18. What methods are being used for performance appraisal?
Force choice distribution method Eassy Method 
Ranking method  Critical incident method 
Any other 

19. Is 3600evaluation process undertaken in the organisation?
Yes  No 
(b). If yes, from when?
Recently  More than 1 year 
Less than 1 year  Since the inspection of 3600process 
20. What kind of remedial measures are taken for battlement of the employee after
evaluation are done?
Job rotation  Sent to training programmes 
Counseled  Any other 

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