Summer Training Project Report On “A Study on Performance Appraisal in Allied Nippon Limited”

Submitted for the partial fulfillment of the Award Of

Master of Business Administration Degree
(Session: 2010-2012) SUBMITTED BY
AJAY PANWAR Roll No. 1003270002

UNDER THE GUIDANCE OF
Internal Guide: Ms. Akanksha Rastogi Department of Management ABES ENGINEERING COLLEGE, GHAZIABAD

AFFILIATED TO

MAHAMYA TECHANICAL UNIVERSITY, NOIDA
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Summer Training Project Report On “A Study on Performance Appraisal in Allied Nippon Limited”

Submitted for the partial fulfillment of the Award Of

Master of Business Administration Degree
(Session: 2010-2012) SUBMITTED BY
AJAY PANWAR Roll No. 1003270002

UNDER THE GUIDANCE OF
Internal Guide: Ms. Akanksha Rastogi Department of Management ABES ENGINEERING COLLEGE, GHAZIABAD

AFFILIATED TO

MAHAMYA TECHANICAL UNIVERSITY, NOIDA.
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DECLARATION

I hereby declare that the work which is being presented in this report entitled, “A STUDY ON PERFORMANCE APPRAISAL IN ALLIED NIPPON LIMITED”, is an authentic record of my own work carried out under the supervision of Ms. AKANKSHA RASTOGI.

The matter embodied in this report has not been submitted by me for the award for any other degree.

Dated:

Ajay Panwar MBA-III Semester

This is to certify that the above statements made by the candidate are correct to the best of my knowledge.

Prof. Rakesh Passi (Head of Department)

Ms. Akanksha Rastogi (Name of the Supervisor) Sr. Asstt. Professor

Date:

MBA Date:

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Akanksha Rastogi. I take this opportunity to thank all of them with a deep sense of gratitude and reverence. Ghaziabad. Sahibabad. Rakesh Passi (HOD.) & Ms. He directly made a significant contribution to emerge to this project report. AJAY PANWAR DATE: PLACE: 4 . for their valuable support regarding this project work. I wish to express my sincere thanks to Mr. for his caring and guiding support and for giving a very patient hearing whenever I needed.Acknowledgement This project is the result of the help of the various people who rendered their support and suggestions from time to time. My sincere thank to Prof. Raj Kumar Singh (Manager-HR & IR). I would like to thank my family and friends who directly or indirectly helped me in finishing the project successfully. Allied Nippon Limited. Management Deptt. Firstly.

Contents  Chapter-I     Introduction Need of the Study Scope of the Study Objective of the Study  Chapter-II   Research Methodology Limitation  Chapter-III  Descriptive work on sub-topic of the study  Chapter-IV  Data Analysis & Interpretation  Chapter-V  Conclusion & Suggestion 5 .

 Chapter-VI  Bibliography  Chapter-VII  Appendices 6 .

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to study from the various Performance Appraisal programs. in terms of its existing market-size. Manufacturing Brakes Shoes. about the most popular types of products in demand. the major players & the products. Performance Appraisal in Allied Nippon Ltd. the mission also sets up the tone to explore the current market scenario. future market potential. with that to study the possibility to change the performance appraisal methods. adopted by the company & to seek out the players. & the important market segments. MISSION OF THE PROJECT: The Mission of this Project is to make the detailed study of the industry. It also comprises of the fact. as per the needs of the company.INTRODUCTION EXECUTIVE SUMMARY COMPANY PRODUCT PROJECT TITLE: ALLIED NIPPON LTD. Apart from this all. 9 . The studying of the Staff workers & their preference parameters comes in it. too. being offered by them.

Allied Nippon Ltd. Clutch Facings. a Hitachi group company. ABOUT OUR PARTNERS JAPAN BRAKE INDUSTRIAL CO. Suzuki. Japan. is a pioneer in the development of Friction Material Technology. Brake Linings. Commercial Vehicles (CV). ANL continuously receives up to date technical knowledge. Tokyo. Off The Road Vehicles (OTR )and various other automotive applications.(ANL) has Joint Venture Collaboration with Japan Brake Industrial Company Limited (JBI). As JBI‟s Joint Venture partner. and research & development expertise. an ISO/TS 16949:2002 company. and Brake Hydraulics for Cars. General Motors and Hyundai. It is a major supplier to the world‟s leading automobile manufacturers including Honda. (JBI) JBI. that manufactures and markets friction products including Disc Brake Pads. Railways. LTD.COMPANY PROFILE Allied Nippon Ltd (ANL). Brake Shoes. Mazda. 10 .

ANL Europe Ltd Bristol (U. ANL has offices.) . warehousing and customer support centers across the globe.Engineering Office Bristol (U. NABCO has been consistently involved in the development of Automotive Brake Systems and Railway Car Brake System in Japan.K. build better customer contact and provide superior services.) 11 .K.NABCO LTD To widen its automotive product range. to manufacture Railway Brake Blocks.K. ANL has signed a Technical Collaboration agreement with NABCO Ltd.Nippon Line Ltd Moscow (Russia) . International Operations With an exhaustive distributor network. International Locations : . ANL‟s International Operations are equipped to handle problems and technical queries of customers.Allied Comline Ltd Middlesex (U.) .

in 12 .net Website: http://www. Ghaziabad (U.net. INDIA Tel No: +91 11 23753575 – 76 +91 11 26428043 Fax No: +91 11 23753575 Email: intertrade@bol.P. Industrial Area.) INDIA Tel No.: +91 11 55351409 +91 120 2896686 . Barakhamba Road New Delhi – 110 001.95 Fax No: +91 120 2896685 Email: export@alliednippon. Akashdeep Building 26/A. Site IV.com/ REGISTERED OFFICE: (INDIA) ALLIED NIPPON LIMITED 1006. Sahibabad – 201010 Distt.alliednippon.ALLIED NIPPON MANUFACTURING : A – 12.

com Website: http://www.K.comline.uk.com (U.) ALLIED COMLINE LIMITED Unit – 30. England Tel No: (44) 0117 932 1050 Fax No: (44) 0117 932 1059 Email: mail@anl-europe.uk. : (44) 020 8902 8989 Fax No: (44) 020 8902 9898 Email: mailto:%20acl@comline. Northfield Industrial Estate Beresford Avenue. Wills bridge Bristol BS 30 6EL.com Website: http://www.(U.K. England Tel No. Wembley Middlesex HAO INW.) ANL EUROPE LIMITED Unit 16 Londonderry Farm Key sham Road.com/ 13 .anl-europe.

Moscow. 2nd Roschinsky Proezd.com Website: http://www.allied-nippon.8. Russia .(RUSSIA) NIPPON LINE LIMITED 307.com/ 14 .115419 Tel No: +7 (095) 956 6670 Fax No: +7 (095) 956 6670 Email: mailto:grishin@allied-nippon.

the recently expanded range of CV & OTR pads have been well accepted in sophisticated markets such as the European. ANL Disc Brake Pads can be classified into 3 categories: Asbestos Free (Semi Metallic / Metallic) . European.Asbestos The range of Allied Nippon Disc Brake Pads covers After Market requirements for Japanese. North America and Australia. American and Australian Vehicles. proven technology. Additionally. 15 . Korean.Asbestos Free (Non Asbestos) .PRODUCT PROFILE Disc Brake Pads Using JBI‟s extensive research. process methods and original equipment formulation.

The pads are supplied with complete accessories and wear indicators. The products have been supplied extensively to manufacturers of Passenger Cars.Trucks and Off-The-Road Vehicles Based on increasing product acceptance& recognition ANL has expanded its manufacturing and business activities to include an exhaustive range of Commercial vehicles (CV) and Off-TheRoad (OTR) vehicles pads such as heavy earth movers. Brake Shoes and Brake Hydraulics. Discs and Hydraulics ANL‟s Braking range also consists of various products such as Brake Linings. LCVs. Suvs. Shoes. Customers are assured and guaranteed the safety and reliability of ANL products.Brake Linings. Two Wheelers and Four Wheelers Commercial Vehicles . Tractors. 16 .

Mixing. Japan. 17 . a worldwide leader in its field and superior quality. skilled and trained personnel monitor the entire production process. ANL Brake Blocks are manufactured under the most stringent quality checks MANUFACTURING Experienced. Pre-forming. Heat Moldings and Finishing are given high priority. It has acquired the latest and most cost effective technology from NABCO. Safety being a paramount importance. The computerized and fully automated plant uses JBI‟s proven technology and process methods. Furthermore the critical operations – Weighing.Railways ANL is a pioneer in the development and manufacturing of composition Brake Blocks for Railways. All raw materials are screened through a rigorous selection process and the manufacturing process ensures zero defect system at every stage.

is equipped with a Dynamometer and the Krauss testing machine. ANL‟s R & D centre also conducts rigorous tests to ensure that the highest standards are maintained in raw material selection. ANL has built and developed its own centre for inhouse research and development activities. mix quality and the entire manufacturing process. equipped with modern tool room facilities. approved by the Government of India. To conduct and complete in-house testing for newly developed products (ranging from twowheeler to HCVs). ANL‟s R & D centre. is in a unique position to design. develop and manufacture tooling for products required by the customer within stipulated time schedules. 18 . RESEARCH & DEVELOPMENT: Besides using superior Japanese Technology.ANL. thereby providing it with a solid backing.

Well-equipped in-house Quality Control meets the calibration and inspection requirement as per international standards.QUALITY ASSURANCE Allied Nippon friction materials go through systematically defined Quality Assurance testing procedures and programmes. high endurance. All critical and special characteristics are statistically measured and controlled. dependability and cost effective performance. ANL products consistently guarantee the combination of safety. 19 . strength.

a major OEM supplier for renowned Vehicle Manufacturers. Royal Enfield. Kawasaki Bajaj. Ford. Fiat. Mitsubishi. Allied Nippon Bonded Brake Shoes are also used as Original Equipment on two wheelers manufactured by Hero Honda. Kinetic Motors in India and Piaggio in Italy.OEM USERS The Original Equipment Users ANL. 20 . caters to the requirement of various Original Equipment Manufacturers which include Honda. Hyundai. Suzuki. International Harvester and Massey Ferguson. Toyota. GM. and Brake system suppliers including Bendix and Girling. Yamaha. Mazda. Daewoo.

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one of the organization and the other two of the individual namely: 22 . in accordance with the prescribed schedule mentioned by management of Allied Nippon Limited. They help in finding out the weaknesses in the primary areas. Performance Appraisal has been considered as the most significant an indispensable tool for an organization. for an organization.NEED OF THE STUDY The project was an attempt to study the “Performance Appraisal in Allied Nippon Limited”. for the information it provides is highly useful in making decisions regarding various personnel aspects such as promotion and merit increases. The project was started on 11th of July. after knowing all the relevant information about the company‟s HR policies and its dealings with their employees. Formal Performance Appraisal plans are designed to meet three needs. 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. Accurate information plays a vital role in the organization as a whole. selection. training and compensation. in Sahibabad.

They let him know where he stands with the Boss. 23 . 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 suggest ways of improving the employee s performance when he is not found to be up to the mark during the review period.  To plan career development. human resource planning based potentials. demotions or terminations.  Superior uses them as a base for coaching and counseling the individual.  They are the means of telling a subordinate how he is doing and suggesting needed changes in his behavior. On the basis of merit rating or appraisal procedures. transfer. They provide systematic judgments to back up salary increases.  To determine increment rewards and to provide reliable index for promotions and transfers to positions of greater responsibility. attitudes.  To identify training and development needs and to evaluate effectiveness of training and development programmes. skills or job knowledge.

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The views of the Executives were taken through primary. for no one can manage. Performance should be measured for it to be managed. & appreciate its benefits. what it can‟t be measured. 25 . what he/she actually can‟t measure. & it also follows that no one can improve. if we have to create high-performance. This study aims to increase both employees & organization‟s awareness for the need to develop a useful performance evaluation & appraisal system.SCOPE OF STUDY The Project given to study Performance Appraisal in ALLIED NIPPON LIMITED. as well as secondary source. we must also to understand that it requires the definition that you would know. Being a student of management I can draw the relevant conclusion from the market survey and give the appropriate suggestion to the organization. when it present & when it isn‟t? This project will also helps to understand the current market scenario and marketing in stiff competition. So. as well.

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OBJECTIVES OF STUDY

The main objectives of study is to: -

To study the process through which Performance Appraisal takes place in ALLIED NIPPON LIMITED.

To know that how much they are aware about the process.

How much they are satisfied with the process?

To effect promotion based on competence and performance.

To assess the training and development needs of employees.

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

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To improve Communication, with or with-in the group & that of the colleagues.

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 rates.

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Primary data is the data collected specially for a specific purpose. sampling. tabulation and ultimately analysis of data to reach some conclusions.RESEARCH METHODOLOGY Research Methodology is the selection of an appropriate research method and forming some guidelines according to which the research is carried out. The method used in collecting primary data in my research was personal discussion with the help of a questionnaire. 31 . on the basis of which some suggestions are given. It consists of choosing pattern and a method of collection data. The methods used for its collection are Personal discussion & Questionnaire etc. In this I asked a set of predetermined questions in a predefined order. Data collection: - a) Primary data: . the answers given by the respondents were used to fill up the questionnaire.

given more information and the response is very good. b) Secondary Data: Secondary data consists of information that already exists somewhere and was collected for another purpose. The secondary data provide a starting point for research and offer advantage of low cost and ready availability. which were to be analyzed to know the process of Performance Appraisal.Questionnaire: - A questionnaire was prepared which consisted of open-ended questions with multiple choices. 32 . The questionnaire used was structured type of questionnaire. Secondary data used here was the performa of performance appraisal used in ALLIED NIPPON LIMITED. which may not be the same as the purpose of research. It was prepared taking into account the factors. The questionnaire is attached in appendix at the end of the report. This method was preferred as it is economical.

33 . Research Instrument : Structured Questionnaire. Shop-floor Level).e. who do not hold a Supervisory position (i.Research Methodology Adopted:- Research Design : Descriptive Research. as well the Closeended) SAMPLE-PLAN: Sample Method : Non-Probability Sampling (Convenience Sampling) Sample Size : 100 Sample Unit : Employees. (Open Ended Questions.

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There is no concrete basis to prove the response given. 5. The Questionnaire contained mostly the multiple-choice questions. therefore. Due to the fact that most of the respondents were young. in Allied Nippon Limited: - 1. 3. 2. 8. is a true measure of the opinion of all the employees. many of the respondents may not have given a proper thought before answering the questions. as a whole. Sensitive company information cannot be displayed in the Project-Report. Employees of the NightShift were not considered for the purpose of study. Convenient Sampling was used as the mode of conducting the research. The Sample consisted of only the employees in the Day-shift.LIMITATIONS The following are the major Limitations faced by me. the questions might not have been answered with due sincerity. 6. thinking that the Management might misuses the data. during the course of study of Performance Appraisal followed. Most respondents might be influenced by their peers in answering the questions. The response of the respondents may not be accurate. 4. 35 . 7.

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as for instant. The assessment of how successful employees have been at meeting their individual goals. However. There will be some differences in the quality and quantity of work done by different employees even on the same job. it is necessary for management to know these differences so that the employees having better abilities may be rewarded and the wrong placements of employees may be rectified through transfers. The basic purpose of performance appraisal is to facilitate orderly determination of an employee‟s worth to the organization of which he is a part. Thus. the degree of success that individual employees have in reaching their individual goals is important in determining organizational effectiveness. This leads us to the topic of performance appraisal. Therefore. while others are highly subjective. becomes a critical part of HRM.DESCRIPTIVE WORK WHAT IS PERFORMANCE APPRAISAL? Since organizations exist to achieve goals. there is a great need to have suitable performance appraisal system to measure the relative merit of each employee. attendance. The individual employee may also like to know the level of his performance in comparison to his fellow employees so that he may improve on it. People differ in their abilities and aptitudes. therefore. as for instant. 38 . These differences are natural to a great extent and cannot be eliminated even by giving the same basic education and training to them. a fair determination of the worth of an employee can take place only by appraising numerous factors some of which are highly subjective.

Notwithstanding this. but there is no device to measure the subjective factor precisely. merit evaluation. progress rating. Performance appraisal goes by various names such as performance evaluation. merit rating. Supervisor or an independent appraiser may do rating. To quote dale Yoder. we shall use the terms performance appraisal and merit rating to denote the appraisal of the performance of the employees of an organization. It is a continuous process to secure information necessary for making correct and objective decisions on employees. which is concerned with not only the contribution of the members who form part of the organization.” The comparison of performance with job requirements helps in finding out the merit of individual employees in a week group. etc. It employs various rating techniques for comparing individual employees in a work group. 39 . Performance appraisal means systematic evaluation of the personality and performance of each employee by his supervisor or some other person trained in the techniques of merit rating. appraisal of these factors must be done to achieve the full appreciation of every employee merit. Performance appraisal is a formal program in an organization. in term of personal qualities or deficiencies and the requirements of their respective jobs. But in this chapter.attitude and personality. but aims at spotting the potential also.” performance appraisal includes all formal procedures used to evaluate personalities and contribution and potential of group members in a working organization. The objective factor can be assessed accurately on the basis of records maintained by the Human resource or personnel Department. The satisfactory performance is only a part of the system as a whole and the management needs more information than mere performance ratings of the subordinates.

the individual‟s immediate superior in the organization and whose performance is reviewed in turn by his superior does the evaluation. in terms of personal qualities or deficiencies and the requirements of their respective jobs. Generally. Purpose of Performance Appraisal: The objective of performance appraisal fall in two categories: 1) 2) Administrative. and Self-improvement 1) Administrative Objectives:- a) Promotions: This is the most important administrative use of performance appraisal. Thus. Performance appraisal is concerned with determining the differences among the employees working in the organization. Performance appraisal is the systematic evaluation of the individual with respect to his performance on the job and his potential for development. It is to the common interest of both the management and employees to promote employees onto position 40 . everyone in Performance appraisal employs rating techniques for comparing individual employees in the work group.There are no two opinions about the necessity of performance appraisal. which can meet requirements of the management to achieve the organizational goals.

such actions are called for because of unsatisfactory performance while in other cases it may be called for due to economic conditions over which the organization has no control because of changes in production process. A properly developed and administered performance appraisal system can aid in determining whether individuals should be considered for promotions. b) Transfers: In an organization. It is mismanagement to promote employees into position where they cannot perform effectively at the time in question.where they can most effectively utilize their abilities. In some cases. The system must rate the ratee for the present job and his potentialities for the higher job. it may be necessary to consider various types of personnel actions such as transfer. 41 . demotions and discharges. c) Wage and Salary Administration: In some cases. Such actions can be justified if they are based on performance appraisal. the wage increases are based on the performance appraisal reports. appraisals and seniority are used in combination. In some cases. A person performing the job well does not necessarily mean that he is fit for promotion . layoffs.

thus pointing out general training deficiencies which presumably should be corrected by additional training. Performance appraisal helps human resource development in a way. 42 . It can also provide the areas where the employees/executives could be further trained and positioned to meet retirement and expansion situations. Various theories in human relationship are outcome of efforts to find out the cause and effect relationship between the personnel and their performance. 2) Self-Improvement Objectives:- The performance appraisals bring out the deficiencies and shortcomings of the employees. discussions. Performance appraisal can also help in spotting the talented employees so as to train and develop them to create an inventory of executive skills.d) Training and Development: An appropriate system of performance appraisal can be helpful in identifying the areas of skills or knowledge in which certain employees are not up to par. or counseling. A promotion minded individual could ask for the target programmes of a position he seeks and use the information given by performance appraisal to prepare him for the job and enhance his candidacy. e) Personnel Research: Performance appraisal helps in research in the field of personnel management.

incorporate new information as it arises and carry his plans through the results. 43 . It highlights a sort of total managerial action in contrast to things they customarily factor out as conceptual entities-things such as planning function. The manager‟s selection will often be improved by this emphasis on the whole managerial job. translate his ideas into action. or financial knowledge. leadership ability.Performance appraisal also helps to spot out a person‟s ability to see an organization problem. devise ways of attracting it.

If the performance of an employee is better than others. 5) Ratings can be used to evaluate the effectiveness of training programmes.Why Performance Appraisal? The important reasons or benefits. but if a person is not doing well in a job. 44 . 2) Performance rating helps in guiding and correction of employees. 3) The ability of the staff is recognized and can be adequately rewarded by giving them special increments. 4) Performance appraisal can be used as a basis of sound personnel policy in relation to transfers and promotions. Merit rating reveals weaknesses of employees and the training programmes can be modified accordingly. It also helps to assign that work to individual for which they are best suited. he can be recommended for promotion. are as under: 1) A good system of performance appraisal helps the supervisor to evaluate the performance of his employees systematically and periodically. The supervisor may use the results of rating for the purpose of constructively guiding employees in the efficient performance of work. which justify the existence of a system of performance appraisal in an enterprise. he may be transferred to some other job.

which might be leveled by the trade union leaders. The necessity of performance appraisal leads the appraiser to a thoughtful analysis of people rated and tends to make him more alive to opportunities and responsibilities in developing the subordinates. The appraisal brings prominently to the attention of supervisors or executives the importance of knowing their subordinates as human being.6) Performance appraisal provides an incentive to the employees to better their performance in a bid to improve their rating over others. The record of merit rating is available in permanent form to protect the management against subsequent charges of discrimination. The objective of appraisal is to derive the point to the appraisee without inviting his resentment or drawing back into the shell or taking defensive attitude. Performance Appraisal has a beneficial effect on both the persons doing the appraisal and being appraised. 45 . 7) Systematic appraisals will prevent grievances and develop confidence amongst the employees if they are convinced of the impartial basis of evaluation.

4) Supervisors often do not have critical ability in assessing the staff.Limitations of Performance Appraisal: Performance appraisal may not yield the desired results because of the following deficiencies: 1) accurate. 46 . they are guided by their personal emotions and likes. so the actual rating may not be on scientific lines. So the ratings are likely to be biased. If the factor included in the assessment is irrelevant. Sometimes. the result of merit rating will not be 2) Different qualities to be rated may not be given proper weightage certain in cases. 3) Some of the factors are highly subjective like initiative and personality of the employees.

As a matter of fact. Job evaluation analyses the job to determine their relative worth and fix their wage levels that are fair and equitable. etc. It is also termed as merit as it is concerned with the comparative merit of individuals. It does not take into account the individual abilities of the jobholder. 3 The purpose of merit rating is to appraise the performance of individuals to take decisions like increase in pay. Performance appraisal rates the man and not the job as it is concerned with assessing of the abilities of the individuals. transfer. Job Evaluation Job evaluation is the analysis of various jobs to know the demands. promotion. it measures the worth of different employees to the organization. It considers the requirement of various jobs in terms of jobs description and job specifications.Difference between Performance Appraisal and Job Evaluation: Performance Appraisal 1 Performance appraisal is concerned with the differences among the employees in terms of their performance. which should be imparted to the employees. 2 It considers the abilities and performance of individuals. It also serves as guidelines for the management to consider the type of training. The purpose of job evaluation is limited. This facilitates fixation of wages for various jobs. 4 . to determine the worth of the job on the basis of demands made by a particular job on the average worker.e. i. 47 . which the normal performance of particular jobs make on average employees.

48 . Performance appraisal is used as a basis of personnel policies as regards transfer and promotion Job evaluation is used to shape the wage policy of the organization.5 .

etc. judgment. Evaluation of employees is done on the basis of standards of personal traits or qualities such as attitudes. dependability. versatility. Graphic – rating scales. punctuality. 1) Traditional Methods Traditional methods are very old technique of performance appraisal. 49 . leadership. They are based on traitoriented appraisal. initiative.Methods of Appraisal There are various methods of merit rating may be classified into: 1) 2) Traditional Methods and Modern Methods. They are:        Unstructured appraisal. There are Seven (7) traditional methods of appraisal. loyalty. Field review. Critical incidents. Check – lists. knowledge of job. Forced distribution. Employee ranking.

 Ranking Method: Ranking is a simple process of placing in a rank according to their job performance. The rater is provided with a little booklet containing two names on each page. and so on. Under this. Subjectively of the appraiser may enter into his judgments. comments are required to be grouped under specific headings such as quality of job performance. where n is the total number of persons to be compared. and development needs. Obviously the number of rank order would be n(n – 1)/2. the appraiser is required to write down his impression about the person being appraised in an unstructured way. personality traits. the best in placed first in the rank and the poorest occupies the last rank. in some organizations. Asking the appraiser to rank employees on certain desirable traits can reduce the subjectiveness in this method. This system is highly subjective and has its merit in its simplicity and is still in use especially in the small firms. However. Unstructured Appraisal. In this way. In this way. every employee in a job family is compared with every other employee to determine which is the better worker. The difficulty of this system is that the rater is ranked to consider a whole person. 50 . The other difficulty with this method is that it does not indicate the degree of difference between the first man and the second man. reasons for specific job behaviors. Paired comparison is an improvement over simple ranking. Under this. It permits comparison of all employees in any single rating group regardless of type of work. All workers are judged on the same factors and they are rated on the overall basis with reference to their job performance instead of individual assessment of traits.

 Forced Distribution Method: Some appraisers suffer from a constant error. In this system. As a matter of fact. and 10% „poor‟. It cannot be used for periodic employee‟s ratings. The objective of this technique is to spread out ratings in the form of a normal distribution. The paired comparison gives a more reliable rating than the order of ranks although this system is more tedious to construct and use. average or excellent employees clearly. the appraiser is asked to distribute the employees into these categories in such a way that about 10% of the men are in group „outstanding‟. as it does not make evaluation of any improvement in the employees that might have been over a period of time. they either rate all workers as excellent. i.. Many times.every employee is compared with every other employee in the same job family. forced distribution of rankings is feasible for a large group. 20% „above average‟. This method obviously eliminates the room for subjective judgment on the part of supervisors. It has an advantage over the paired comparison system in that two or more employees can be given equal ratings.e. above average. this group is comparatively smaller. which is open to criticism. This system is based on the presumption that employees can be divided into five points scale of outstanding. The forced distribution system is devised to force the appraiser to fit the employees being appraised into predetermined ranges of scales. This system is easy to understand and administer. 40% „average‟. 51 . average below average and poor. average or poor. They fail to evaluate the poor.

one means of ensuring that the rater has based his scoring upon substantial evidence is to leave space on the form after each factor and require him to explain the reason for his rating. skew ness and dispersion. he is asked to give example of the rate‟s behavior that justifies the assigned rating. However. It permits the statistical tabulation of scores in terms of measures of central tendency. attitude. etc. scales are established for a number of specific factors and qualities. Frequently. The graphic rating method is easy to understand and easy to use. It permits a ready comparison of scores among employees. There is an implication that a high score of one factor can compensate for a low score on another. A supervisor may tend to rate him men high to avoid criticism from them. In effect. cooperativeness. Since certain area of job performance cannot be objective measured. The selection of factors to be measured on the graphic rating scale is an important point under this system. it is likely that graphic scales will continue to use a mixture of both characteristics and contributions. The scores presumably reveal the merit or value of every individual. Five degree are established for each factor and general definitions appear at points along the scale. this method has certain serious drawbacks. If a man scores for attendance. However. and Contributions. Graphic scales impose a heavy burden upon the supervisor. one for each person to be rated. The main drawback of this system is that the rater may be biased. He must report and evaluate the performance of his subordinate on scales involving as many as five degree on perhaps ten different factors. the rating tends to cluster on the high side under this 52 . Generally. There are two types: 1) 2) Characteristics. the rater is supplied with a printed form. such as initiative and dependability. such as quantity and quality of work. Graphic Rating Scales: Under this method.

A supervisor may tend to rate his men high so that they may receive high share of pay raises in some cases. Then raters who actually observed the accomplishment of the work sort these cards. When this process is over. it compels the supervisor to think in terms of very specific kinds of behavior. a) Weighted Check List: Under this method. After the weights and values are attached to the individual traits. Then the weights are averaged and employee is evaluated. This method involves a lengthy procedure of evaluating employees. the supervisor just collects and checks all the statements. rating is placed on separate cards. Because of this. various statements are prepared in such a manner that they describe various types and levels of behavior for a particular job. the rating up to this level is gathered on the rating sheet. At the time of rating the employees. The weighted check – the persons thoroughly acquainted with job and perfect at preparing and weighing statements should prepare list. Each statement is attached with a scale value. Weights are then assigned to the statements in accordance with the way they are ranked by the raters. the supervisor is not allowed to accumulate vague impressions as a basis for rating. Under this method. and b) Forced choice. They rank the employee from poor to excellent. It requires certain 53 .  Check Lists: It also consists of two techniques: a) Weighted check list.system.

a) b) c) d) Gives clear instructions to his subordinate. as a separate procedure must be established for each job b) Forced Choice: This method is used particularly with the objective of avoiding scope for personal prejudices. Financial burden is further increased when diverse jobs are evaluated. the rater is forced to choose between descriptive statements of seemingly equal worth describing the person in question. The rater may feel that neither of the two statements in a pair is applicable. It puts more strain on the financial resources of the organization particularly in terms of personnel development time. 54 . but he must select the one that is more descriptive. Only one of the statements in each pair is correct in identifying the better performances and this scoring key must be kept secret from raters. bias removed from the appraisal process. Statements are chosen of both the sides (favorable as well as unfavorable). the following two pairs of statement from each pair that is represented by supervisor. Shows favoritism to some employees. The main advantage of establishing this system of performance appraisal is that it has greater objectivity than most other methods. Makes promises that he knows he cannot keep.qualifications to be met on the part of the supervisor regarding the job he is assigned to look after. Moreover. Under this method. Can be dependent upon to complete any job assigned. For example. In this way. this method is a relatively costlier affair.

Secondly. Thirdly. this procedure involved is very lengthy and hence more time – consuming. They are as follows: Firstly. 55 . it is very expensive to install this system.Forced – choice method is also not free from drawbacks. it is difficult for a supervisor to discuss rating switch subordinates because the personnel department scores the items.

the supervisor is supposed to refrain from passing overall judgments and concentrate upon discussing facts as he sees them. learning ability. Suggested an improvement in the work method‟ Tried to get a fellow worker to accept the management decision. otherwise. as it requires the supervisor to pay close attention to what an employee is doing. Resisted the implementation of change. Daily recording of these items seems to be essential because. It has been observed 56 . This method suffers from the defect that outstanding incident happens so frequently that individual‟s appraisal may not vary markedly between any two time periods. Welcome new ideas. The critical incident method is not a rating method. which indicate effective or successful action and those. Theoretically. It represents an exceptional behavior of an employee at work. which indicate ineffective or poor behavior. Critical Incident Method: A critical incident means a significant act by an employee exceeding or failing any of the requirements of his job. Refused to help a fellow worker. as for instance. the supervisor may forget the incidents with his subordinates. dependability. Examples of such type of job requirements of worker a are judgment. These are recorded in a specially designed notebook. This method requires every supervisor to record all such significant incidents in each employee‟s behavior. Became upset over work. productivity. Under the critical incident method. which contains categories or characteristics under which various behaviors can be recorded. responsibility and initiative. accuracy of work. this should provide a sound and an objective basis for appraisal of performance of an employee.

The interviewer questions the supervisor about the requirements of each job in his unit and about the performance of each man in his job. which consists of a number of behavior incidents. He probes to find out only how a man is doing but also why he does that way and what can be done to improve or develop him. outstanding ability. Moreover. 57 . The supervisor is required to give his opinion about the progress of his subordinates. the level of performance of each subordinates. his weaknesses. which are considered to be an example of uncommonly. equally divided between effective and ineffective specimens. and the possible plans of action in cases requiring further consideration. satisfactory and unsatisfactory. but overall ratings are obtained. Thus. promotion ability. The workers are usually classified into three categories as outstanding. an expert from the personnel department interviews the supervisors. Gerald Whitlock designed a specimen checklist.  Field Review Method: Under this method. ineffective. If the critical event does not happens‟ it will be difficult to rate an employee. it may be difficult for a supervisor to decide what is the critical or exceptional incident? Her against the human bias may appear in recording the critical incident. or effective job behavior. The expert questions the supervisor to obtain all the pertinent information on each employee and takes notes his notebook. there is no rating form with factors or degrees. The usual procedure in constructing the specimen checklist is to collect behavior incidents from certain experts in this area. The number of such performance behaviors ranges from 80 to 150 incidents.that most of the time the employees have neither positive nor negative incidents. To rectify this defect. The questions are asked and answered verbally. good points.

Field review method relieves the supervisors of the tedious writing work of filling in appraisal forms. which are discussed below:  Halo Error: This type of error occurs when the rater allows one aspect of a man‟s character or performance to influence his entire evaluation. The personal judgment is always subjected to personal bias or prejudice as well as pressure from certain other areas. The appraiser may not be able to judge the competence of the employees because of lack of training. performance ratings are frequently subject to a number of errors and weaknesses. Superficial judgment can be eliminated if the appraiser probes deeply. he can consider all of the men relative to a standard or to each other on each trait. he can contribute significantly to accurate appraisal. It also ensures a greater likelihood that the supervisors will give adequate attention to the appraisals because the personnel department largely controls the process. The error can be recognized quite easily on factors scales. The rating scale technique of performance appraisal is particularly susceptible to the halo supervisor judge all of his subordinates on a single factor or trait before going to the next. It is the tendencies of many raters to let the rating they rating to one characteristic excessively influence their rating on all subsequent characteristics. Because of the judgment role of the supervisors under the traditional system.The success of field review method depends upon the competence of the interviewer. 58 . If he knows his job. Criticism of Traditional Methods: The general criticism of traditional performance appraisal systems is that they are two subjective in nature because all of them are on personal judgment of the rater. In this manner. Many supervisors tend to give an employee approximately the same rating on all factors.

Lenient or easy raters assign consistently high values or scores to their subordinates and strict or harsh raters give consistently low ratings. generally the raters are reluctant to rate people at the outer ends of the scale..  Leniency or Strictness: Some supervisors have a tendency to be easy raters and others have a tendency to be harsh in their ratings. he may play it safe by neither condemning nor praising. It is possible for this type of rating i. Because of these reasons. all average to be a true rating. but its probability is less than its frequency. So he may rate them „average‟.e. 59 . Central Tendency: This error occurs when the rater is in doubt about the subordinates or has inadequate information about them or is giving less attention and effort to the rating process. The rater knows that he has to appraise his subordinates at periodic intervals but if he is unfamiliar with some of the subordinates or does not have sufficient time to devote to the rating process. Both the trends can arise from varying standards of performance among supervisors and form different interpretations of what they observe in employee performance.

 Miscellaneous Biases: In many cases. Supervisors will tend to rate their subordinates near the middle of the spectrum if their bosses put pressure on them to correct the worker‟s average rates or to get rid of the subordinates. the rater may give higher ratings because he thinks that it would look bad for him if employees in the other department received higher pay increases than his pay. They also give higher ratings to senior employees because they are too ready to admit that they have not improved under their leadership. Some supervisors show bias against members of the opposite sex or of another caste. Recent Behavior Bias: Often some raters evaluate persons on the basis pf their performance in recent few weeks. average behavior is not checked. a rater is influenced by organizational positions and may give higher ratings to those holdings the higher positions. 60 . Many a times. religion or nationality. Some employees being aware of this tendency show better results when they feel that they are being observed and the report of their performance is to be compiled soon.

That is why it was observed: 1) 2) 3) Coaching should be a day – to – day. not a once . USA. When the alternative behavioral approach was introduced by one – half of the supervisors. In this study. one way or other. the investigator found that traditional approach of performance appraisal resulted in the following responses: a) b) c) d) Criticism arises from the very nature of the system. all reported more favorable attitudes on such items as amount of help received.Many people have attacked the reliability and validity of traditional systems on different grounds.a year activity. Those subordinates receiving above average criticism showed less improvement in ensuring ten to twelve weeks than those receiving less criticism. which lead to interior performance. Praise has little effect. acceptance of organization goals and value of the appraisal interviews. but the fundamental criticism has been founded upon the judgment role of the supervisor and the antagonistic response of the subordinates. Criticism increases antagonism and defensiveness. ninety-two appraisal interviews based on traditional measurements were analyzed. In a study of appraisal systems in General Electric Co. the extent to which their abilities were utilized. For the appraiser of behavioral supervisor. respectability of their supervisors. Mutual goal setting not criticism improves performance. 61 . differences in subordinates response pattern remained unchanged. ability of the supervisors to plan. Criticism has a negative effect upon achievement of goals. Participation by the employee in the goals setting procedure helps favorable results.

Thus. 62 . but by his performance with respect to the agreed goals or objectives. which is based on the behaviour of the subordinates. which he called “management by objectives and self-control”. The first is management by objectives. the use of such trait ratings produced two main difficulties: a) b) The manager was uncomfortable about using them and resisted making appraisal. which represents result-oriented appraisal. Under this approach. 2) The subordinate prepares a list of reasonable objectives for the coming period of six to twelve months. It had a damaging effect on the motivation and development of the subordinates.  Management by objectives: It was Peter Drucker who proposed goal setting approach to performance appraisal. which are used by the modern concerns. actually called “Work planning and review” in case of General Electric Co. USA. Gregor further strengthened this approach. the essential feature of this approach is mutual establishment of job goals.2) Modern methods:There are two important methods of performance appraisal. The second is behaviorally anchored rating scale. an employee is not appraised by his recognizable traits. Besides. He was concerned with the fact that most traditional appraisal systems involved rating of traits and personal qualities that he felt were highly unreliable. Goal setting approach or “Management By Objectives” (MBO) is the same as behavioral approach to subordinate appraisal. Douglas Mc.. The application of goal setting approach to performance appraisal involves the following steps: 1) The subordinate discusses his job descriptions with his superior and they agree on the contents of his job and the key results areas.

63 .3) 4) He sits with his superior to discuss the set targets and plans. It is problem-solving approach rather than tell and sell approach. and There is emphasis on problem solving rather than criticism of the performance of the subordinates. This approach is considerably superior to the traditional approach of performance appraisal. The goal setting approach has done away with the judgmental role of the superiors in the appraisal of their subordinates. It emphasizes training and development of individuals. This approach can be applied with great success if the performance appraisal program consists of the following elements: i) ii) iii) Good job descriptions are available to help setting of goals for different positions. and the ways of measuring progress are selected. 5) The superior and the subordinate meet at the end of the period to discuss the result of the subordinate‟s efforts to meet the targets mutually established. Superiors have trust in the subordinates to establish reasonable goals. and a final set is worked out. The goal setting approach is based on clear and time bound objectives from the corporate level to the operative level. This approach has also got a built – in device of self – appraisal by the subordinates because they know their goals and the standards by which their performance will be measured. greater agreement. Check – points are established for the evaluation of progress. It has led to greater satisfaction. greater comfort and less tension and hostility between the workers and the management.

The Goal setting approach suffers from the following limitations:  The subordinates can apply this approach only when the goal setting is possible. training and development. in practice.  This approach is appropriate for the appraisal of executives and supervisory personnel who can understand it in a better way. it is not possible to forge the critical aspect of performance appraisal. thought and the superior and the subordinate. But. 64 . It involves considerable time. it will not be possible for the superior to have discussion with each and every subordinates for setting up mutually agreed goals. If the span of supervision is quite large. Operative workers cannot understand this approach and moreover. a vast majority of them do not want to take initiative in setting their own goals. It is doubtful if such a procedure can be applied for the blue color workers.  This approach is not easy to administer.  This approach mainly emphasizes counseling. It is argued that critical evaluation and modification to improve are incompatible.

and consequently is able to provide a basis for setting developmental goals for the employee. halo effect.-specific and identifies observable measurable behavior. it is a more reliable and valid method for performance appraisal. The administrative uses of appraisal had encouraged rating systems to produce an overall measure of performance. By anchoring the scales behaviorally. the supervisor is in a position to compare the employee‟s actual behavior with the behavior that has been previously determined to be more or less effective. The second controversy involved the multidimensional nature of performance. performance. Because it is job. and to describe the more effective and less effective job behavior for getting results. 65 . The third controversy involved in the issue of the most effective way to anchor the rating scales (numerically or behavioral). and results. On was the issue of the rating content (trait vs. Empirical studies of Behaviorally Anchored Rating Scales (BARS) have provided a fertile ground for study by both theorists and practitioners. the BARS approach was expected to produce more valid and reliable results by reducing measurement errors (leniency. which tended to mark difference in performance in the key result areas (“performance dimension”) critical to job results.). etc. job related). Performance is evaluated by asking the rater to record specific observable job behaviors of an employee and then to compare these observations with a “behaviorally anchored rating scale”. Proponents of BARS claim many advantages of this approach. As a result.Behaviorally Anchored Rating Scales Behaviorally Anchored Rating Scales (BARS) are designed to identify the critical areas of performance for a job. They argue that such a system differentiates among behavior. central tendency. The BARS experience has helped to clarify three major controversies of the appraisal process.

Designing an Appraisal Programme:-  Determining the Objective of „performance Appraisal. Before any performance appraisal programme is initiated. which the employee can reasonably be expected to meet. it is essential to determine its objectives.  Establishing Standards of Performance. Such a method will take it possible for both supervisor and his subordinate to reach agreement on just what is expected in terms of performance. definite standards of accomplishment. transfer and promotion. in writing. but the talents of manpower also vary from organization to organization. 66 . Sometimes. The objective of the appraisal programme may be either to appraise the actual performance of individuals to higher jobs or both. an approach that is more preferable is to establish. etc. The expectation of management is also higher in some organizations than in others. However. increase in pay. it is necessary to establish standard on performance against which their performance should be compared. It should be noted that performance standards are relative to the group and the organization. For effective rating of employees. performance appraisal programmes are associated with specific objectives like training and development. Not only are the needs of each organization different.

the subjectivity invariably steps in. Some people feel that employee should be allowed to rate themselves. But again the difficulty may arise because the second rater may not have the necessary contact with the individual who is to be rated. It is often assumed that qualified psychologists are more capable than laymen of making unbiased judgments since they receive training in the dynamics of the personality and also in the correct manner of making the judgment. the appraiser is the immediate superior of the man to be appraised. A well-adjusted person is less subject to projecting himself into other than a poorly adjusted person and. That is why some organizations try to obtain two or more ratings on each employee. therefore he is able to judge them better. which may consist of a number of supervisors and specialists from personnel department and a representative of the worker. 67 . The committee will rate each individual collectively.Who is to do the Appraisal? Generally. When this is done. But there are certain limitations of appraisal by one person. their immediate superiors may offer their rating in conjunction with ratings. Whosoever the appraiser may be. He is most familiar with the employee‟s work and is in contact with him and so he is considered to be able to appraise him well. The possibility is the constitution of a rating committee.

mechanical. sales. which fits into the objectives of the older ones. The first category of forms is designed to evaluate employee performance for the purpose of making wage adjustments. etc. and six monthly or yearly appraisals. may create a sense of fear amongst the ratees. Performance forms may be classified as those involving comparative ranking and others involving the comparison of each employee‟s actual performance with predetermined standards. technical and supervisory. promotions. All require a different evaluation form. monthly. and second category of forms is used to improve the performance of workers on their present jobs. lay offs. Frequency of Appraisal The frequency of appraisal differs from organization and with the nature of duties performed. There are not spot appraisals. 68 . quarterly. Idea frequency is one. The forms should be related to job families such as clerical. But most of the organizations conduct yearly or half – yearly appraisals because more frequent appraisals besides taking away time of the appraiser or raters.  Designing of Forms This is an important step in performance appraisal to design the rating forms to be utilized in the programme.

employees may not understand it fully and may look at the plan with suspicion. 2) The performance appraisal system should be performance based. It should be ensured that the appraisers are honest. just and equitable. etc. judgment and behavioral orientation. A personal between the appraiser and the employee has to be developed to achieve mutual understanding of the criteria of evaluation. behavior. targets. 69 . expected of them. When the appraisal system is complicated. rational and objective in their approach. The plan should not be very time-consuming.Requirements of a Sound Performance Appraisal Program: A sound system of performance appraisal must fulfill the following essentials: 1) The appraisal plan should be simple to operate and easy to understand. This will increase their commitment to the plan and their understanding of expected performance. fair. 5) The appraisal plan should take into account the appraisal practices prevailing in other units in the industry as well as the latest thinking on performance appraisal. It should fit in the structure and operations of the organization. 3) The employees should be made aware of the performance in terms of goals. 4) The appraisal plan should be devised in consultation with the subordinates. uniform and non – variable.

Goal – orientation. The number of factors to be considered and the data to be collected should be tailor-made to achieve the objective of the appraisal. mutual trust informal relationships. The objectives of the appraisal programme may be to evaluate current performance on the job and to determine the potential for higher jobs. promotion. etc.6) The top management must create a climate of reliable appraisal throughout the organization. 70 . etc. training. transfer. performance appraisal is linked with specific objectives like pay raise. 7) The appraisal plan should be designed to achieve specific objectives. open communications. The results of appraisal must be discussed with the rates so that they may get an opportunity to express their feelings on their progress reports. 9) There should be provision of appeals against appraisals to ensure confidence of the employees and their associations or unions. are the basic elements of such a climate. In some cases. more persons may rate an individual independently. In order to ensure objectivity in appraisal. 8) The appraisers should be selected and trained properly so that they have no personal bias and possess the necessary capabilities for objective evaluation of employees.

The Chief Executive feels that performance appraised is a dangerous source of friction and so it should be discontinued altogether. 71 . is a reputed finance company having 10 branches in different parts of the company. Co-operative attitude and Community Service. Its staff includes 290 operative employees and 70 executives. Recently. two employees working at the Head Office have been denied annual increments due to comparatively low ratings. and Leadership Potential. Dependability. The employees seem to organize a union and demand that annual increments should be granted automatically. the ratings are discussed with the concerned employees by their immediate boss and are used to counsel them and arrange further training for them. After the performance is evaluated. The qualities considered are: Responsibilities. They have made a representation to the Chief Executive of the Company expressing their dissatisfaction with the appraisal system and insisting that community service is not a part of their job and it should not influence their ratings.CASE STUDY Unique Funds Ltd. Initiative. The company has a performance-rating plan under which a committee of two executives by means of graphic scale rates the staff members at the end of each financial year. The ratings are also used for granting or withholding of increments and promoting of meritorious staff.

how would you defuse the problem? How far do you agree with the Chief Executive‟s view that performance appraisal should be discontinued? 3) On what lines would you recommend modifications in the performance appraisal system of the company? 72 .QUESTIONS 1) 2) If you were the Human Resource Manager.

To facilitate the above we will strive to continuously train over employees and to provide them an open and particular environment.QUALITY POLICY ALLIED NIPPON LIMITED will strive to provide consistently nutritious and quality products to meet consumer‟s satisfaction by using quality materials and by adopting appropriate processes. (CHAIRMAN AND MANAGING DIRECTOR) 73 .

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Type of performance appraisal preferred: After analyzing the data. 76 . the data was collected which is analysed as follows: - 1.DATA ANALYSIS By having discussion with senior production officers of Allied Nippon Limited and filling of the questionnaire. the results shows that 85% of the senior production officers prefer quarterly performance appraisal and 15% prefer half-yearly performance appraisal.

100% - 80% - 60% - 85% 40% - 20% 15% Quarterly Half-yearly Monthly Annually 77 .

This analysis shows there is lack of appraisal by the immediate seniors.2. Senior‟s satisfied by subordinate‟s performance: After analyzing the data. the results shows that 85% of the senior production officers feel that their seniors are satisfied with their performance and 15% can‟t say. YES (85%) CAN‟T SAY (15%) 78 .

Satisfied with their own Performance After analyzing the data. the results shows that 85% of the senior production officers are satisfied with their own performance and 15% are not satisfied with their own performance. YES (85%) NO (15%) 79 .3.

This shows that 85% of the senior production officers are satisfied with their own performance and 15% are not satisfied with their own performance. This implies that satisfaction level has to be increased among senior production Officers. 80 .

4. 100% YES NO 81 . Performance appraisal improves performance After analyzing the data. the results shows that 100% of the senior production officers feels that performance appraisal do helps in performing better.

Through this we come to know that process of performance appraisal is coming out to be positive and it should be continued. 82 .

5. the result shows that 100% of the senior production officers submit all the information timely to their seniors. 100% YES NO 83 . Information is submitted timely by the senior production officers to their seniors After analyzing the data.

84 . comprising of the data & figures. related to the subject-matter assigned to them by the senior authorities or Officers.This shows that all the senior production officers submit all the information timely to the seniors.

the results shows that 67% of the senior production officers feel that they are provided with a chance to defend them against adverse entries in their appraisal whereas 33% denies it. Adequate and fair chance provided to defend against adverse entries in your appraisal After analyzing the data.6. 85 . YES (67%) NO (33%) This shows that there is lack of chances provided to defend against adverse entries in appraisal.

86 . 16% of senior production officer‟s due to other reasons and no bad performance from the rest of the 52% of senior production officers. 16% of senior production officers due to official reasons.Reason for bad performance After analyzing the data. the results shows that 16% of senior production officers performed bad due to personal reasons.

100% - 80% - 60% - 40% 52% 20% 16% 16% 16% Personal Official Others No Bad Performance 87 .

88 . which are required to be rectified to improve performance.This shows that there are some reasons.

89 . Awareness of appraisal system. YES (67%) NO (33%) This shows that awareness about the performance appraisal system is to be increased.8. the results shows that 67% of the senior production officers are fully aware of the appraisal system and rest 33% are unaware of this system. After analyzing the data.

3. 4. And then after according to their selfobservation and through the appraisal form filled by the staff members rating is given to the members. I have got the following findings: - 1.) For appraisal in Allied Nippon Limited.FINDINGS Based on my analysis of data collected during my study in ALLIED NIPPON LIMITED.) In ALLIED NIPPON LIMITED.) Performance appraisal in ALLIED NIPPON LIMITED. 2. SAHIBABAD.) In ALLIED NIPPON LIMITED. 5. there is lack of proper knowledge among senior production officers about the procedure followed in Performance Appraisal. Sahibabad. a SELF-APPRAISAL form is given to the staff members and they fill it up. SAHIBABAD. 90 . SAHIBABAD. Accordingly then incentives and promotions are granted.) There is lack of fair chances provided to defend yourself against adverse entries in your appraisal. is done annually. at the majority senior staff members submit all the information timely to their superiors. SAHIBABAD.

7.) There is lack of satisfaction level among the senior production level officers regarding to their own work as they have monotony at their work.) All senior production officers agree that performance appraisal system helps them to perform better. 91 .6.

2. and the results obtained. 4. Staff members should be provided with the training about performance appraisal and they should be made very well aware about the thing that this exercise can help them in developing their performance and attitude which will help them on their own part at majority and company at minority. 3. Staff members should be provided with the well-defined targets. 92 . following are the recommendations to improve the procedure of performance appraisal followed in Allied Nippon Limited: - 1.RECOMMENDATIONS According to research undertaken by me. Senior-Subordinate meetings should be made very regular so that every can keep his point in front without any hesitation and that will add to their innovation and creation. The process of performance appraisal should be made goal-oriented.

93 .

94 .

k) Subordinate development. c) Job knowledge. filling the questionnaire and analyzing the data. g) Attendance. e) Innovation and creativity. 95 . I have derived the following conclusion – In ALLIED NIPPON LIMITED performance appraisal is conducted annually.CONCLUSION After collecting the information from the senior production officers with the help of personal discussion. d) Dependability. j) Customer relations. i) Discipline. h) Reactions to criticism. b) Quantity of work. a self-appraisal form has been given and senior production officers have to fill that form which throws light on their basic achievements during the past accounting year. After that the immediate boss who has been observing the immediate subordinate throughout the year rates him according to the self appraisal form filled and personal observation under following factorsa) Quality of work. f) Ability to learn. Under this process.

Accordingly. Rating given to the senior production officers is done confidentially and whatever information is been filled in the self-appraisal form is not cross-questioned. The sole objective for taking part in performance appraisal of Senior production officers in Allied Nippon Limited is to be awarded with promotions and incentives but the basic reason why performance appraisal is conducted is to develop the performance and attitude. Senior production officers of Allied Nippon Limited follow the procedure of performance appraisal given by the senior managers because they have monotony in their work and they have no time for any innovation or creativity.The rating given is confidential and out of the knowledge of their subordinates. 96 . promotions and incentives are granted to the deserving ones.

97 .

Under this method the person whose performance is to be judged is in between and his peers.SUGGESTIONS As we know “Performance appraisal is a systematic and objective way of judging the relative worth or ability of an employee in performing the task.”  The company should go for the 360degree performance appraisal. supervisor. head and the manager of the company is around him who rate the performance of the employee based upon certain predefined criteria‟s. The system is like: 360-degree Performance Appraisal Head Supervisors Person. whose performance to rate Peers Manager 98 . Performance appraisal helps to identify those who are performing their assigned tasks and those who are not and the reasons for such performance.

They don‟t want financial help as they earn enough to maintain their status. this will help to raise their moral and they can work better. They want their work recognition.  The should keep changing the raters for the performance appraisal system from time to time so that they don‟t become bias at anytime for any employee. provide them the medical facilities etc because they want financial help from the company to insure their proper living.  For the top management of the company it should offer them holiday package. give them pension schemes.  For the lower group the company can increase their wages.  The method of the company should be changed periodically so that the employees have mo chance to complain for the method. The company should appraise the performance of the workers by giving them some incentives. 99 . which motivate them to work to their fullest capacity and to motivate them to work more and show good and better results. appraise performance by recognizing there work in meetings etc.

100 .  There should be the feeling of teamwork in the organization.  The standards of the rating should be very specific. which is been measured.  The system should be cost effective and it should suit the budget of the company. clear and concise.  The performance. The criteria decided upon which the performance has to be rated should not be fixed it should be changed from time to time. should be verifiable and measurable afterwards also.

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102 .

BIBLIOGRAPHY

1. Chabbra T.N. “HUMAN RESOURCES DEVELOPMENT” : Dhanpat Rai & Co. Pvt. Ltd., New Delhi. 1999

2.

Rao V.S.P. “HUMAN RESOURCES DEVELOPMENT” : Excel Books, New Delhi. 2007.

3. Robins, D. : “HUMAN RESOURCE MANAGEMENT”: Prentice Hall, New York.
1998.

(Text and Cases)

4. www.alliednippon.com

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3: Are you satisfied with your performance? Yes No Q.APPENDICES STUDY OF PERFORMANCE APPRAISAL SYSTEM NAME: Q.1: What type of performance appraisal you prefer? Annually Monthly Quarterly Half yearly Q.2: Are your seniors satisfied with your performance? Yes No Q.4: If no do you think you can perform better? Yes No 106 .

8: What actually comes as the reason for your bad performance? (if any) Personal Official Other Q.6: Do you submit information timely to your superiors? Yes No Q.Q.7: Do you get adequate and fair to defend your self against adverse entries in your appraisal? Yes No Q.5: Does performance Appraisal help you in performing better? Yes No Q.9: Are you fully aware of the appraisal system followed in your company? Yes No 107 .

Q.10: Any suggestion to alter existing Performance Appraisal system of your company? ______________________________________________________________________________ ______________________________________________________________________________ __________________________________________________________________________ 108 .

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