Performance Appraisal Mba Project

CONTENTS
1. INTRODUCTION OF THE PROJECT

2. GROUP PROFILE.
3. COMPANY PROFILE.
4. INDUSTRY PROFILE.
5. CONCEPTUAL FRAME WORK.
6. RESEARCH METHODOLOGY.
7. APPRAISAL SYSTEM.
8. DATA ANALYSIS.
9. FINDINGS& CONCLUSIONS.
10. RECOMMENDATIONS.
11. APPENDIX
NARAYANA INSTITUTE OF MANAGEMENT
Page 1
INTRODUCTION
OF THE
PROJECT
Page 2
INTRODUCTION
Performance appraisal is the systematic process of measuring and evaluating
employees with respect to their performance on the jobs and their potential for
development. Performance appraisal is one of the tools for motivating the human
resources. It plays a prominent role in determining the strength and weaknesses
of the employees and helps them in controlling them. And this will help the
employees in overcoming their weaknesses by taking necessary and immediate
action.
Functions of Performance appraisal:

a. Developing policies, procedures and techniques
b. Helping the functional managers
c. reviewing the reports and consolidation of reports.
d.. evaluating the effectiveness of various programmes.
The performance appraisal is that it enables the management to make effective decisions
or modify their earlier decisions relating to the following issues of H.R.M.
I.
Organizational Planning based on potentialities of its human resources.
II.
Human resource planning based on weakness, strengths and potentialities of

human Resources.
III.
Organizational effectiveness through performance improvement.
IV.
Fixation and re-fixation of salary, allowances, incentives and benefits.
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v.
Original placement of placement adjustment decisions.
VI.
Identifying training and developments needs and to evaluate effectiveness of

training and development programs.
VII.
Career planning and development and movement of employees.
Performance appraisal is that to evaluate the existing plans, information system, job
analysis internal and external environmental factors influencing performance like
relations with supervisors, working conditions, personal problems of the worker like
family, financial and health
GROUP PROFILE
The Mourya Inn is one of the best 3 Star Hotel in Rayalaseema, Established in 1995.The
mourya Inn is as part of the T.G.V project and investments (p) Ltd., The company was
promoted by Sri. T.G.Venkatesh who is a pioneer in the development of T.G.V group. Sri
T.G.Venkatesh has accredited with the distinction of establishing number of companies
Sri T.G. Venkatesh has received number of awards from theState and Central Government
and other reputed organizations for his meritorious services indifferent walks of life.
Different Number of Companies:

Sri Rayalaseema Alkalies and allied Chemicals Ltd.,
Sri Rayalaseema Hi-Strength Hypo Ltd.,
Sri Rayalaseema Dutch Kassenbouw Ltd.,
Sri Rayalaseema Galaxy Projects Ltd.,
Sri Rayalaseema Agro Chemicals Ltd.,
T.G.V. Projects and Investments Pvt. Ltd.,
TGV Infosystems Ltd.,
Page 4
Brilliant Industries Ltd.,

Brilliant Securities Ltd.,
Gowri Gopal Apollo Hospital.
Sri Maruthi Marine Industries Ltd.,
PRESENT ACTIVITIES:
The company is presently engaged in the following activities.
Hotel Business
Hiring of cylinders
Constructions and Development of Real Estates
Hire Purchase and Leasing Business
DEVELOPMENT OF REAL ESTATES:

Shopping Cum Office Complex:
The company acquired the land to an extent of 2.32. Acres in the heart of
KurnoolTown and adjacent to Kurnool Bellary Road and every nearer to Kurnool town
Railway Station. We have construction of a huge shopping complex and so far we have
completed theconstruction of 160 shops. The company is able to general 1, 50,000 /-P.M.
in form of rents.
Page 5
COMPANY PROFILE
A HOME AWAY FROM HOME
The company constructed a Three Star Hotel in its own premises, i.e., adjacent of
the shopping complex, Bhagyanagar, KURNOOL. The company could able to complete
the construction successfully and inaugurated the Hotel before March 1995. The hotel
The Mourya Inn has been classified, as Three Star Hotel by the Department of Tourism,
Govt. of India and its a first Three Star Hotel in Rayalaseema region. The Hotel is
consisting of 100 double rooms, including 8 suites, one vegetarian Restaurant AAHAR,
One Non Vegetarian Restaurant SHAMIANA and a conference Halls- DARBAR &
PARINAYA to hold conference. The Hotel is centrally air conditioned with all requisite
facilities of a Three Star Hotel. The company has spent nearly Rs.6.00 crores for the
construction of the Hotel Project. Out of this, the Vysya Bank Ltd., Abids Branch,
Hyderabad sanctioned a term loan of Rs.74.40Lakhs and the company is paying the
installments and interest regularly and there is an outstanding loan of Rs.8.41 Lakhs. The
balance of the investment has been meant with theinternal generations of the
company.Aahar is pure vegetarian restaurant serving authentic Indian & Chinese
Cuisines.Vihar, a garden Restaurant and Galaxy, a Non- Veg Restaurant serving the best
of Indian, Chinese, Continental and Tan door delicacies. For the Sweet Lovers there is
Mourya Sweet Palace with an array of Bengali. South Indian and Regional Sweets.
Darbar, an Air-Condition Banquet hall is where seminars, Conferences and get-togethers
can be organized. There even are special rooms for mini-conferences. Parinaya, the Airconditioned function hall equipped with PA and CC TV systems cam accommodate up to
400 people. A state of the art cyber caf gives access to Internet and E-mail
TGV PROJECT & INVESTMENT Pvt. Ltd.,

Quality Policy
Page 6
TGV Projects & Investments Pvt. Ltd., is committed to consumers satisfaction by

manufacturing quality products under safe measures, with the participation of all
employees
The Hotel Mourya Inn

Quality Policy
To provide comfortable stay with value added Quality Services to make the guests feel
The Mourya Inn, is A Home away from Home with continuous improvement &
participation of all employees.
INDUSTRY PROFILE
T.G.V group of industries, Kurnool. It was started in the year1995. This group
was started with rupees 750 crores. Backed by a rich and varied experience spanning
more than two glorious decades, is a rapidly growing, well-diversified one. This group
was hospitality, entertainment, Salt & aqua culture etc.
A 3000+strong labor base
strength the group resolves to excel.
THE HUMAN TOUCH

The TGV group is headed by the dynamic &versatile personality, Tubalam Gouty
Senates (TGV).Since three decades period, he did not get any failures in his
achievements. There is no substitute for handwork is what this simple man believes in
deed during his vibrant career.
He is closely associated with national programs for human well being such as
immunization, eye camps, family planning measures etc. To safeguard the health of his
employees, he has mooted a unique non-smoking & non-smoking & non-alcoholic
allowances.
AWARDS OF TGV:
Page 7
He was honoured as the Jaycees man of the year for his in valuable contribution
to social welfare. The best entrepreneur award, FICCI award, Vijayshree
award , udyogshree award, rajiv ratna award, and scores of others speak for his
deep involvement in whatever he undertakes to do. The best sales tax payer award
proves this uprightness as a responsible Indian citizen.
CHAIRMAN OF TGV GROUP:

The TGV son T.G.Bharath is a new age visionary. Overseas education a post graduation
in business administration with international management as elective and work
experience, plus a disciplined Indian upbringing have in calculated in him, a deep sense
of values and a abiding respect for the state-of-the-art.
As the chair and managing director of Sree Rayalaseema Hi-strength Hypo Ltd.
In addition, as chairman for TGV info systems ltd., TGV Products and investments Pvt
Ltd. Sree Rayalaseema Dutch Kassenbow Ltd and brilliant securities Ltd. He has
commandeered the companies to the highest level of achievements with in two years.
Turnover has doubled, resulting in phenomenal profit soaring as in the case of Sree
Rayalaseema Hi-strength Hypo Ltd. Thanks to the imaginative cost-cutting measures
introduced by him. T.G.Bharath aims at making the group efforts to think with in the
very Near future, and spares no effort in this direct
THE HOTEL MOURYA INN

FACILITIES & SERVICES
Located in the heart of the city just 1 Km from RTC Bus Stop and Km from
Railway Station.
Spacious Parking facilities
Inside shopping Complex
Inside Cinema Theatres
Travel Agency with RTC/Railway Ticket & A.P. Tourism Reservation
Safe deposit locker
Page 8
Doctor on call
Swimming pool
Separate vegetarian and Non-Vegetarian Restaurant
Bar facility, sweet place
Function hall
Cyber caf
Foreign currency exchange made available
Computerized billing system
Credit card acceptance
ORGANIZATIONAL STRUCTURE
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MANAGING DIRECTOR
GENERAL MANAGER
FRONT
OFFICE
FOOD&BEV
ERAGES
HJOUSE
KEEPING
PROJECTS&
Maintenance
ROOM
SREVICE
MATERIALS
PERSONNEL
DEPARTMENT
SWEET
PALACE
SECURITY
FRONT OFFICE
DEPARTMENT STRUCTURE
Page 10
F.O .EXECUTIVE
RECEPTIONIST (3)
INFORMATION
CASHIER (3)
TELEPHONE
OPERATOR (3)
BELL BOYS (4)
The most important feature of a Hotel is its reception. As it makes the first impression on
the customer therefore this department plays a vital role in the service-oriented
organization. TheMourya Inn also has a very beautiful and attractive Front Office
rendering its best service to the customer. The wide lounge in the front of the Reception
Cabin is marketing the atmosphere pleasure one. From this point the service of the Hotel
starts and the customer will be treated as the Guest of the Home.
HOUSE KEEPING
The department is indirect representation of the entire Hotel because all the cleanliness
and service oriented works is to be maintained by this department and also the guest
room cleanliness is also to be maintained.
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Managing Director
Chief Public Relations Officer
Housekeeping in
charge
Line Supervisors (1)

Guest Call
Attendants (2)
Guest Call
Supervisors (1)
Floor / room Attendants
Night Supervisors (1)
Room Attendants (3)

Laundry
Boys
Public Area Supervisors (1)
Public area Attendants (6)
Workers
(3)
Gender
(1)
Page 12
The immediate action taken by the organization when a customer enters as a guest. i.e., the room
cleanliness, change of items like Bed Sheets, pillow covers etc, checking the entire facilities i.e.,
water supply functioning of A/C is observed by this department and also the daily works such as
sweeping, washing of cloths, laundry, cleaning of toilets with hygiene etc.
Ate strictly
maintained. Apart from the rooms, floors, public areas such as reception lobby restaurant, car
parking, garden etc are maintained by the same department.
ROOM SERVICES
The only department which works around the clock working 3 shifts 8 hours a day. This
department renders all the food & beverage items to the customers/guest in the room.
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The only authorized persons to enter into a guest room in the room service waiter.
Managing Director
Chief Public Relation Officer
Room Services Incharge
A shift (7-3) pm
Order taker
Boys (7)
B shift (3-11) pm
Order Taker
Boys (7)
C shift (11-7)pm
Order Taker
Boys (3)
The entire department staff is well trained and is very obsequious such that the guest
satisfaction on the services renders by this department is very high
Page 14
This department also works round the clock. The pantry service such as snacks and cool
drinks are served. Through which full fledged services are attained. All the varieties of
dishes offered are up making at your choice to choose.
PROJECT & MAINTENANCE

Managing Director
Chief Public Relations Officer
General Manager
Electrician
Plumber
A/C Maintainer
D/C Maintainer
Page 15
The entire maintenance of the Hotel rests with this department.
All the electrical,
plumbing. Air conditioning operations etc., problems are solved.The immediate response
given by this department makes the guest to have the facilities and enjoy the services
during his Stay.
MATERIALS
This department will supply the necessary utensils, spares, tools etc., for all the
department messes and make the machines work properly and also will be the bridge to
fill the gap ;between the better and the best way of servicing. The Purchase & Inventory
is maintained by this department.
PERSONNAL DEPARTMENT
Resources are the means, which can be drawn on. They are the means for Production,
support, defense as well as source of strength and aid. Human resources are the human
wealth or means that can be drawn on. Human capital or man power resources of a
company can be treated as its Human Resources .It can otherwise be understood as the
resourcefulness of the human beings or people available for an organization.
In the context of changing trends ,a well through out and formulated policy for human
resources development and management would be necessary due to various reasons.
Human Resources are developed in this organization in accordance with the thrust of the
challenges of technical, and leadership requirements of the contemporary world.
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HUMAN RESOURCE DEPARTMENT CHART
General Manager
Human Resource Manager
Office H.R
Assistant
Security Officer
Guard
SWEET PALACE
A place where a variety of sweets are available i.e..,Bengali,SouthIndian North Indian
,Gujarati,Jain and other Religious sweets are saliva secreting products offered to
customer.
Page 17
SECURITY
The security provided by the Organization for cars, money,persons etc through various
facilities and a professional team is appointed for the security of the entire organization.
SHIFT TIMINGS
A
SHIFT
06.00 A.M
to
02.00P.M
SHIFT
02.00 P.M
to
10.00P.M
SHIFT
10.00 P.M
to
06.00A.M
SHIFT
Providing tea and breakfast
SHIFT
Persons who attends for B shift be eligible
SHIFT
Providing only Tea
Page 18
THE MOURYA INN AND ISO 9002

As the
MOURYA INN is
an
ISO
9002 certified organization it has to give the
following details to the Bureau of Indian Standards.
A) Details of the Company

a) Name of the firm
b) Address
c) Address of the registered office
d) Status of the unit
e) Whether a part of some larger organization
B)
C)
Number of employees
a) Description of category of products or processes for which license is sought
b) Quality system assessment schedule
c) Details of assessment
d) Details of any quality system documentation.
According to the Bureau of Indian Standards Act 1986 a company seeking ISO 9002
Certification must give the following preliminary information.
Name of the company, product, composition of top management, Details of technical
personnel employed.
Page 19
Phases of ISO 9002 Certification:

Phase 1
In phase one the quality team will conduct a pre-audit in the company with the evaluation
of the questionnaire given
Phase 2
In phase two the quality team will review the documents produced by the company
Phase 3
In phase three a quality team will go for an audit in the company.
Phase 4
In phase four quality team will make surveillance in the organization.
After all the phases complete the certification body will report to the company
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Phase 1
Pre-audit in the company
(or) Evaluation of the
questionnaire
Report to the company
Phase 2
Document Review
Phase 3
Audit the company
Phase 4
Surveillance By the
Certification Body
Report to the Company
Page 21
The Indian register of system framed the following instructions for the companies
applying for the ISO 9002 Certification.
1. To provide efficient timely services
2. To satisfy the customers needs for quality of goods and services
3. To work and act in such a way that each task, performed as individuals or as corporate
entity, lead to excellence and enhances the credibility and image of the organization.
2.1 INTRODUCTION
Performance Appraisal is a systematic, Orderly and Objective and method of evaluating
the present potential resources of the employees in an organization. It helps the
employees and the organization in their growth and development.
Virtually all companies have some formal or informal means of appraising their
employees performance. Performance Appraisal may be defined as any procedure that
involves.
1. Setting work standards
2. .Assessing the employees actual performance relative to these standards.
3. Providing feedback to the employees with the aim of motivation that
person to eliminate performance deficiencies to continue to perform
above par.
Performance appraisal is one o the tools foe motivating the human resource. It plays a
prominent role on determining the strengths and weakness of the employees and helps
them in controlling their weaknesses by taking necessary and immediate action.
But the process of appraising the performance of organization member is made difficult
by the fact that the criteria and ineffective performance are frequently difficult to design.
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The area of performance for which a single individual is responsible are often unclear and
evaluations tend to be based on measurement of actual performance but on the perception
and judgment of an individuals immediate .Supervisor or boss. Some of these vague
ambiguous and judgmental characteristics performance appraisal in organization are
unavoidable because the complexity of managerial jobs and the difficulties inherent in
Cleary designing concrete criteria of effective performance
2.2 DEFINITIONS OF PERFORMANCE APPRASIAL

Performance appraisal is the systematic process of measuring and evaluating employees
with respect to their performance on the jobs their potential for development.
There are different definitions given by different authors .They are as

follows;
In the words of HEYEL,Performance Appraisal is a process of evaluating the
performance and qualifications of the employee in terms of the requirements of the job
for which he is employed .For the purpose of administration including placement
selection for promotion providing financial rewards and other actions which require
differential treatment among the members of a group as distinguished from the actions
affecting all members equally.
According to YODER Performance Appraisal refers to all formal procedures used in

working organizations to evaluate performance contributions and potential of group of
associate.
SCOTT CLOTHIR and SPRIGEL defined Merit Rating Performance Appraisal as a

process of evaluating the employee performance on te in terms of requirements of job.
It is a method of evaluating the behavior of employees in the work spot including both
quantitative and qualitative aspects of job performance.
FEATURES OF PERFORMANCE APPRAISAL

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Performance
Appraisal is the systematic description of an
employees job relevant strengths &weaknesses

The basic purpose is to find out how well the employees are
performing the job and establish a plan of improvement.
Appraisals are arranged periodically according to a definite plan.
Performance Appraisal is a continuous process in every large
scale organization.
OBJECTIVES OF PERFORMANCE APPRAISAL

Objective of Performance Appraisal focus on together employee and organization
development. Some of the objectives are:
Role Clarity.
Self-Assessment
Understanding strengths and weaknesses of the employees.
Identifying Training & Development needs
Better understanding between appraiser and appraise.
Goal Setting
Recognizing achievements
Improves Organizational Performance
Identifying potential and capabilities of employees.
Performance Appraisal System can serve the following purposes, if

defined properly.
1. It can help each employee to understand more and more about his role and
become clear about his functions.
2. It can be instrumental in helping each employee to understand his/her own
strengths and weakness with respect to his role and functions in the company.
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3. It can help in identifying the development and training needs of each

employee.
4. It can to increase mutual understanding between appraise and appraiser.
5. It can be an instrument to provide an opportunity for the employee for self
appraisal and goal setting.
6. It can help and individual to identify himself/herself with the organization. Its
objectives and culture.
7. It can help organization to note and recognize achievements.
8. It can help organization to identifying the pot4ential of its employees for
future needs.
9. It can help in identifying and analyzing the problems in achieving the
objectives and thus finding solutions.
10. Last, but not the least, it can assist in variety of personal decision by
generating data for each employee periodically.
Need for Performance Appraisal:

Performance appraisal is needed in order to:
Provide information about the performance ranks basing on which decision
regarding salary fixation, confirmation, promotion transfer etc.,
Provide information about the level of achievement and behaviors of subordinate.
Provide information which helps to counsel the subordinate.
To prevent grievances and in disciplinary activities.
Who will Appraise:

Supervisors: Who have thorough knowledge about the work of employee and
department head or manager. They are superiors etc.
Peers : Who are in equal status or colleagues to the employees in the

Organization.
Subordinate: This concept is used by many organizations today. It is useful

Page 25
in identifying competent superiors.
Self Appraisal: Employees who appraise their own performance and to

achieve the goals of organizations.
Challenges to Performance Appraisal:

Create a culture of excellence that inspires every employee.
Match organizational objectives to individual aspirations.
Equip people with the skills necessary to perform their duties.
Clear growth paths for specially talented individuals.
Empower employees to take decisions without fear of failing
METHODS OF PERFORMANCE APPRAISAL

Appraisal methods can be classified into two types.
1. Traditional Methods.
2. Modem Methods
Traditional Methods:
Traditional methods of performance appraisal are all based on the judgment of the
superior regarding the performance of the subordinates. The later may use different types
of methods in judging the rate. Some of the methods are:
1. Graphic rating Scale Method:
It is one of the oldest and most popular methods. This method assesses the factor
such as quality of work, job knowledge, co-operating, loyalty, dependability and
etc the rater will record their opinion indicating the degree on a graph. Rating
scale may be exceptional above average.
Average, below graph, poor and
weightage can be assigned as 5, 4,3,2,1.
2. Forced Choice Method:

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This is a special type of check lists in this the Statements are grouped. Each
group consists of favorable and unfavorable statements. This will reduce the bias
and distortion.
3. Paired Comparisons:
This method is calculated by taking the total of {n (n-1)}/2 Comparisons.
It ranks the individual in relationship to all others on a one-on one basis. But this
method is unwieldy when large numbers of employees are being compared.
4. Individual Ranking :
In this method the evaluator will list the employees in an order from higher to
lower. No ties are allowed in this method. And the advantages and disadvantages
are as same as group order ranking.
5. Check list Method:

In this method the evaluator uses a list of behavior and applies do the employee.
In this the rater and the scorer are different, so bias is reduced. Some drawbacks
are there it is possibility to introduce a bias and also it is inefficient if there are
number of jobs.
6. Essay Appraisal:
In this the later will write a narrative describing employees strengths,
weaknesses, past performance, potential and suggestions, for improvement. The
strength of this methods lies in its simplicity and no complex forms or extensive
training to complete weaknesses are it is unstructured, varies widely in terms of
length and con tent, difficult ;to compare individual also the rates writing skills
may vary.
7. Critical Incident Appraisal:

The raters focus on the critical key behaviors that makes between doing a job
effectively. Strength of this appraisal is it desirable and which ones call for
improvement. Drawbacks are Appraisers are required to write regularly and it
may be burdensome for managers, critical incidents may suffer from the
comparison problem, therefore comparison and ranking of subordinates is
difficult.
8. Group Appraisal:
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Under this method, an employee is appraised by a group of appraisers. This

group consists of the immediate supervisor of employee, to other supervisors who
have close contact with the employees work, manager.
The head of the
department or manager may be the chairman of the group and the immediate
supervisor may act as the coordinator for the group activities.
Modern Methods:
1. Behaviorally Anchored Rating Scales[BARS]:
The behaviorally anchored rating scales method combine elements of the
traditional rating scales and critical incidents- effective and ineffective behaviors are
described more objectively.
BARS are also referred as Behavioral exception Scales Smith and Kendall first
developed there in the year 1963. BARS and graphic rating with a series of dimensions
or qualities along which the rater is asked is rate or appraiser the persons being evaluated.
However BARS differ dramatically from the Graphic Rating Scale as below.
The way in which the dimensions along which subordinates are to be rated are
identified.
The way in which various alternative responses along with the rating scales are
described or anchored.
The common rating errors to which individuals are proving when making judgment
are:
1. Strictness and tendency
2. Central tendency
3. Halo effect
4. Regency
5. Personal bias
6. Contrast effects
7. Attribution errors
Behavioral Exception Scales (BES) utilizes behavioral descriptions at various
positions on the scales. Each represent a dimension at various position on the scales,.
Each represents a dimension consider important to perform.
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Behavioral expectation scales (BES) were compared to summated scales for leniency
error, discriminating (among raters), inter raters agreement, and constancy of tater
individual differences across dimensions,
Less lenience error and inter rater
agreement were found for item- analyzed summated scales.

Emphasis also placed on BARS as an observation- rating system that provides
date for the assessment of estimates of accuracy for individual rater.
A great deal of search work had gone into the effects of rater response biases on
using behaviorally anchored rating scales. BARS are advantageous that they reduce
rating error by.
1. Job dimensions are clearly defined for the rater and relevant to the job
performed.
2. The behavioral anchors clearly define the response categories available to
the rater the never less some of other rating errors are still present
Leniency error and composite halo error were present in all ratings: there was no
evidence of relative or absolute halo errors in any rating. There was some evidence that
use of scales for desired dimensions reduced leniency and increased the amount of
variances attributable to rate difference.
2. Management By Objectives (MBO)
Management by objectives that convert organizational objectives into individual
objectives. MBO system can serve as the basis for design of on organization performance
appraisal system and is particularly well suited to higher level managerial jobs for which
techniques such as BARS may be inappropriate or inapplicable.
MBO is an example of result based methods of performance appraisal. Under individuals
are evaluated as the basis what they accomplish not how they get the job done. The are
four important steps involved in the application of MBO to performance appraisal. They
are
1. Goal setting
2. Action Planning
3. Self-control
4. Periodic previews
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In goal setting the organization goals are divided into departmental and individual
goals. In individual level manager and subordinate identifies the critical ones in
order to fulfill the requirements of the job. These goals then become stands by
which the employees result will be evaluated.
In action planning, the realistic plans are developed to attain the objectives. This
step includes identifying the activities, establishment the critical relationships,
estimating the time requirements and determining the resources required to
complete each activity.
Self-control refers to the systematic monitoring and measuring of performance.
MBO philosophy is built on the assumption that individual can be responsible,
self-directive but doesnt require external control and threats of punishment
motivate them to work.
In periodic program reviews corrective action is taken when behavior deviated
standards.
Accounting to MBO philosophy manage subordinate reviews are
conducted in a constructive rather than punitive manner.
3. Human Resource Accounting:

Human Resource Accounting deals with cost of and contribution of human
resources to the organization. Cost of the employee includes cost of manpower
planning, recruitment, selection, placements induction, training, development,
wages and benefits etc., Employees contribution is the money value of the
employees service which can be measured by labor productivity or value added
by human resources.
Essential Characteristics of an effective appraisal system:
Appraise on the basis of representative, sufficient and relevant

information.
Be honest in assessing all the facts he has obtained.
Pass on appraisal information only to those who have a good reason to

want it.
Reliability and validity
Job relatedness.
System of Performance Appraisal

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Performance Appraisal is a nine step process

Establish Performance standards
Communicate standards / expectations to the employees
Measure accrual performance by the following the instructions
Adjust the actual performance due to environment influence
Compare the adjusted performance with the others and previous
Compare the actual performance with standards and find out deviations if
any
Communicate the actual performance to the employees concerned
Suggest changes in job analysis and standards if necessary
Follow up performance appraisal report
In the first stage performance standards are established based on the job description
and job specitication.The standards should be clear, objective and incorporate all the
factors.
The second stage is to inform these standards to all the employees including
appraisers.
The Third stage is following the instructions given for appraisal, measurement of
employee performance by the appraisers through observation, interviews, records and
reports.
Fourth stage is finding out the influence of various internal and external factors on an
actual performance .The influence of these factors may be either including (or) hindering
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the employee performance .The measured performance may be adjusted according to the
influence of internal and external factors. The performance derived at this stage may be
taken as actual performance.
Firth stage is comparing the actual performance with that of other employees and
previous performance of the employee and others. This gives an idea where the employee
stands If the performance of all the employees is ranked either too high (or) low, there
may be something wrong with the standards and job analysis.
Sixth stage is comparing the actual performance with the standards and finding out
deviations. Deviations may be positive (or) negative .If the employees performance is
more than the standards it is positive deviation and vice-versa is negative deviation.
Seventh stage is communication the actual performance of the employee and other
employees doing the same job and discuss with him about the reasons (or) negative
deviations from the pre-set standards as the case may be.
Eight stage is suggesting necessary changes in standards, job analysis, internal and
external environment.
RESEARCH DESIGN
TITLE:
A STUDY ON PERFORMANCE APPRAIASL AT MOURYAI-NN
KURNOOL.
NEED FOR STUDY:

Organizations today believe that every individual has potential and strengths those
human capabilities can be sharpened, developed and utilized better. Performance
appraisal can serve very useful purpose towards shaping, developing and utilizing
their potential and capabilities of the employees. It is an effective tool for growth of
both individual and organization. So there is a need to have better Performance
Appraisal system .Hence the study is undertaken.
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OBJECTIVES OF THE STUDY:

1. To find the perception of the employees on Performance Appraisal system.
2. To identify the shortcomings of the existing appraisal system
3. To identify the factors if any, that should be included in the appraisal system.
4. To give appropriate suggestions for the improvement of performance appraisal in
the organization,
SCOPE OF THE STUDY:

The scope of the study encompasses the area of performance appraisal system in
Human Resource Management, The study is confined to the Manager and Food
&Beverages section only.
LIMITATIONS OF THE STUDY:

This is a time bound of twelve weeks study project hence deep study of
entities is not possible.
Findings of the study are based on the assumptions that the respondents have
divulged.
Persuading the respondents to answer the questionnaire was not an easy task.
METHODOLOGY:
Population:
The total numbers of employees are 200
Sample Size:
Out of the population 100 employees are taken as a sample size.

Page 33
Sampling Technique:
The sampling technique used is simple random sampling.
Tool for data collection:
The method for data collection used in the study is personal interview with the help of
a structured questionnaire.
DATA SOURCES:
The data is collected from the two sources.
1. Primary Data
2.Secondary Data
Primary Data:
Primary data is collected through personal interaction through questionnaire by direct
contact method and through informal meetings and observation.
Secondary Data:
To meet the above objectives of the primary data has been collected from a sample of
employees. A structured questionnaire is adopted to collect the data form a
representative sample. The model questionnaire has been added in the appendix.
As a total number of employees are 200, a sample of 100 has choosen which can
represent the whole.
Sample number 100 has assigned keeping view of the organizers recommendations
and a constraint inherent to shift work, on lean situations, part time workers accept.
The data has been analyzed by graphical techniques which are taken in analysis part.
The interpretations and findings are summarized in findings and conclusion part.
At the end suggestions and recommendations are given due considering on all my
undertakings and interpretation.
Page 34
Appraisal System at Mourya-Inn

The performance rating at Mourya-Inn is based on 9 factors
Job Knowledge
Volume of output
Efficiency &Effectiveness.
Quality of output.
Regularity
Punctuality.
Initiative and Co-ordination
Initiative.
Learning aptitude.
Page 35
Customer Care.
The total marks of these factors are 100.

The most important factors are:
Job Knowledge
Volume of output.
Efficiency of work.
Quality of Output.
Weightage of these factors is 20 .Each factor again divided into categories called as degrees like.
Degree 1
Degree2
Degree 3
Degree 4
Degree 5
Merit rating depends on these degrees
Table - I
Weigh
Degree 1
Degree 2
Degree 3
Degree 4
Degree 5
Knowledge
Knowledge
Knowledge
Very good
Wide
KNOWLED
below
not adequate sufficient
knowledge of
knowledge of
GE
requirement
but tries to
for present
his job and fair
his job and
Makes no
improve
job
knowledge of
related
requirement
related jobs
function
t age
JOB
effort to
Page 36
Points
Factor
improve
Very low
Output
Normal
High volume of
Exceptionally
OF
out put
barely
expected
output
high output
OUTPUT
EFFICIENC 6
Very low
adequate
Efficiency
output
Normal
High efficiency
Exceptionally
Y OF
efficiency of hardly
expected
of work
high
work
Quality
adequate
Quality
efficiency
Quality of
High and
efficiency
Consistently
OF
below
barely up to
acceptable
accurate quality
thorough and
OUTPUT
standard
the mark
norms
of work
accurate
makes no
needs
quality of
effort to
constant
work
improve
check
VOLUME
WORK
QUALITY
Merit rating below third degree disqualifies the employee fore promotion, rewards
and increments.
Merit rating below third degree should communicated back to employee immediately,
so that the employee can improve his performance during the subsequent period.
Remaining other factors weightage is 80.
The maximum Marks for Attendance is 8
If the attendance is above 280 days the Marks awarded is 8.
If the attendance is between 271-280 days the Marks awarded is 7
If the attendance is below 261-270 days the Marks awarded is 4
If the atte4ndance is lass than 260 days the Marks awarded is 0.
Maximum Marks for Punctuality is 7

In the punctuality the sub factors are
0-15 Minutes late 3 fides in an appraisal, Here the Marks awarded is 7
Page 37
16-25 minutes late 4 times in an appraisal, the Marks awarded are 4.
Above 35 minutes late 3 fides in an appraisal period will carry, here the
Marks awarded will be0.
Maximum Marks for involvement is work is 20

This factor comprises of elements such as
Response Time
Work Planning
Work co-Ordination
Communication and feed back.

Marks awarded for every element is5
The factor is Initiative. The maximum Marks for initiative is
15.
The Ninth factor is learning aptitude the maximum marks for
learning aptitude are 15.
The elements are:
Number of training programmes attended. The maximum marks awarded are 8.
Newly acquired skills on the job. The maximum marks awarded are 7.
Performance appraisal is done based on all there of factors in Mourya Inn.
The time schedules for the performance. Appraisal programs are:
Quarterly
Half-yearly
Annually
Annual appraisal programs are conducted for fixations and Re-fixation

Of Salary, allowances, incentives, and benefits.
The performance rating at Mourya-Inn done by 2 raters i.e.,
Rater -I
Rater II
Table:-II
RATER I
RATER II
Page 38
Signature
Designation
Date
First the performance rating would be given be the asst-Manager i.e., Rater-I, depends on
Asst. Managers rating the manage i.e., Rater II would be present his own rating to the4;
management of further proceedings.
When the employee performance is below the standards, the rater should be
communicated the employee thought the caution letter called as.
Reminder I
Reminder II
Reminder III
Reminder IV
After Receiving 3 caution letters if the employee does not improve his performance,
with out notice, the employee will be sent out from the organization with reminder IV.
Rating should be done every quarterly and personal like and dislikes have a Hallow
effect on the rater.
1) Do you know about Performance Appraisal
Page 39
Inference: From the above table 100% of the employees opined that they know about
Performance Appraisal.
Opinion
No of respondents
Percentage
Yes
100
100
Partially
Known
No
Total
100
100
Page 40
2) What do you think is the basic purpose of Performance Assessment
Purpose
Training&
No of Respondents
58
Percentage
58
Development
Career planning
Remuneration
H.R requirement
All
6
4
0
32
6
4
0
32
Inference:
From the above table 58% of the respondents opined the basic purpose of
Performance Assessment is Training&Development,6% as career planning,
4% as Remuneration, 32% as all the above.
3) Can you suggest any method for Appraisal of Performance

Page 41
Method
No of Respondents
Percentage
360
Appraisal
Group
32
32
Appraisal
Interview
Descriptive
8
58
8
58
Analysis
Total
100
100
Inference: In the above table 2% of respondents suggested 360 Appraisal method,
32% Group Appraisal, 8% Interview,58% Descriptive Analysis
4) How frequently is the Performance Appraisal system conducted

Page 42
Frequency
Quarterly
Half Yearly
Annual Yearly
All
Total
Inference:
No of Respondents
18
24
14
44
100
Percentage
18
24
14
44
100
From the above table 24% of the respondents said that the appraisal
should be conducted half yearly,44% of the respondents said its houls be conducted all
5).How is the performance appraisal system in your organization
Page 43
Opinion
Excellent
Good
Average
Bad
Total
No. of respondents
00
52
48
00
100
Percentage
00
52
48
00
100
INFERENCE: From the above table 52% of the respondents opined that appraisal
system is good.,42% as average
6).what do you think the contents for assessing the performance?
opinion
No. of respondents percentage
Jobandwork performance
Regularity in attendance
Behavior
All the above
Total
32
8
20
40
100
32
8
20
40
100
Page 44
INFERENCE:
From the above table 32% of the respondents opined that the
contents for assessing the performance is job and work behavior, and 40% opined that all
the above in the table are considered for assessing the performance.
7). who rates your performance?

opinion
No. of respondents
Percentage
Page 45
Immediate superior
Subordinates
Self appraisal
All the above
Total
58
12
10
20
100
58
12
10
20
100
INFERENCE: he above table 58% of the respondents opined that the performance
is rated by Immediate superior, 20% opined suggested all the above.
8).Does the appraisers need training?

Opinion
Yes
No
Total
No of respondents
20
80
100
percentage
20
80
100
Page 46
INFERENCE: From the above table 80% of the respondents opined that the
appraisers did not need training, 20% opined they need training.
9). Do you think the present appraisal system is effective

Opinion
Agree
Disagree
Undecided
Total
No of respondents
80
16
4
100
percentage
80
16
4
100
Page 47
Inference: From the above table 80% of the respondents opined that they
agree that the present appraisal system is effective.
10).
Do you think the performance appraisal is to identify the
individual level?
Page 48
Opinion
No of respondents
percentage
Agree
Disagree
Undecided
Total
84
12
4
100
84
12
4
100
INFERENCE: From the above table 84% of the respondents

agree that the performance appraisal is to identified the individual
level
.
Page 49
FINDINGS
Majority of employees opine that the basic purpose of Performance Appraisal is
training and development.
Most of the employees suggested Descriptive Analysis method for performance
appraisal.
Almost 75% of the employees agreed that performance appraisal in the
organization is good.
Many of the employees accept that the contents for assessing performance are Job
& work Performance, Regularity in attendance and Behavior in the organization.
The employees of the organization agreed that the performance appraisal system
should conduct Half Yearly.
Many of the employees agreed that it is essential to provide training to the
appraisers.
84% of the employees agreed that performance appraisal is to identify individual
level.
90% of the employees accept that they are receiving regular feedback about their
performance.
90% of the employees agreed that performance appraisal system serve as a basic
for other H.R activities.
90% of the employees accept that they are satisfied with existing performance
appraisal system.
80% of the employees agree that the present appraisal system is effective
Page 50
SUGGESTIONS
1. The appraiser should be trained to develop skills required to carry out
performance appraisal and to overcome various appraisal errors.
2. Self appraisal of the employees should also be taken into consideration while
filling Annual Confidential Reports.
3. The organization should provide supportive environment to the appraiser to

conduct performance appraisal in a fair and unbiased manner.
4. Performance evaluation should taken place with a close involvement of superiors

using a training plan.
5. In the promotion decision the performance of the employee should also taken into
consideration along with the experience. The merit-cum-seniority method can be
followed.
6. The employee should be given specify, timely, understandable and constructively

developed feed back.
7. The company should go for periodic auditing of the appraisal process with the
help of an experienced consultant. It is helpful to identify and rectify the
shortcomings of the appraisal process.
8. The organization should design Training and Development programmers and

Career development programmers on identified shills or knowledge needs.
9. The organization should reorganize achievements of the employees and should

reward them.
10. The organization should design an effective performance appraisal system which
facilitates mutual goal setting and feedback .An M.B.O system can
be
incorporated to facilitate objective in goals set.
Page 51
QUESTIONNARE
NAME
:-
GENDER
:-
EDUCATIONAL QUALIFICATION:-a) S.S.C b) Intermediate c) Degree d)

P.G
e) Diploma f) Any Other
Occupation/Designation
Date of Joining
::-
Department
:-
1) Do you know about Performance Appraisal?

a) Yes
b) partially Known
c) No
2) What do you think is the basic purpose of Performance Assessment?

a)Training & Development
c) Remuneration
b)Career Planning.
d) H.R requirement
3) Can you suggest any method for Performance Appraisal?

a) 360 0 Appraisal
c)Interview
b) Group Appraisal
d) Descriptive Analysis
4) How frequently is the performance appraisal system conducted?

a) Quarterly
b) Half Yearly
c) Annual Yearly
5) How is the performance appraisal system in your organization?

a)Excellent
b)Good
c)Average
d) Bad
6) What do you think the contents for assessing the performance?

Page 52
a)Job & Work Performance

c) Behavior in the Organization
b)Regularity in attendance
d) All the above.
7) Who rates your Performance?

a)Immediate Superior
b)Subordinates
c) Self Appraisal
d) All the above.
8) Does the appraiser need Training?

a) Yes
b) No
BIBLIOGRAPHY
PERSONNEL MANAGEMENT
EDWIN FL IPPO
EVALUATING EMPLOYEE PERFORMANCE
PAUL J.JERONE
PERSONNEL /HUMAN RESOURCE MANAGEMENT

PERSONNEL MANAGEMENT AND INDUSTRAIKL RELATIONS
P.SUBBA RAO.
TRIPATHI
Page 53

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CONTENTS

1. INTRODUCTION OF THE PROJECT

NARAYANA INSTITUTE OF MANAGEMENT

NARAYANA INSTITUTE OF MANAGEMENT

Functions of Performance appraisal:

Organizational Planning based on potentialities of its human resources.

Human resource planning based on weakness, strengths and potentialities of

Organizational effectiveness through performance improvement.

Fixation and re-fixation of salary, allowances, incentives and benefits.

NARAYANA INSTITUTE OF MANAGEMENT

Original placement of placement adjustment decisions.

Identifying training and developments needs and to evaluate effectiveness of

Career planning and development and movement of employees.

Different Number of Companies:

Brilliant Industries Ltd.,

DEVELOPMENT OF REAL ESTATES:

NARAYANA INSTITUTE OF MANAGEMENT

TGV PROJECT & INVESTMENT Pvt. Ltd.,

NARAYANA INSTITUTE OF MANAGEMENT

TGV Projects & Investments Pvt. Ltd., is committed to consumers satisfaction by

The Hotel Mourya Inn

A 3000+strong labor base

strength the group resolves to excel.

THE HUMAN TOUCH

NARAYANA INSTITUTE OF MANAGEMENT

CHAIRMAN OF TGV GROUP:

THE HOTEL MOURYA INN

NARAYANA INSTITUTE OF MANAGEMENT

NARAYANA INSTITUTE OF MANAGEMENT

NARAYANA INSTITUTE OF MANAGEMENT

Line Supervisors (1)

Room Attendants (3)

NARAYANA INSTITUTE OF MANAGEMENT

Chief Public Relation Officer

Room Services Incharge

NARAYANA INSTITUTE OF MANAGEMENT

PROJECT & MAINTENANCE

Chief Public Relations Officer

NARAYANA INSTITUTE OF MANAGEMENT

The entire maintenance of the Hotel rests with this department.

All the electrical,

NARAYANA INSTITUTE OF MANAGEMENT

HUMAN RESOURCE DEPARTMENT CHART

Human Resource Manager

Providing tea and breakfast

Persons who attends for B shift be eligible

Providing only Tea

NARAYANA INSTITUTE OF MANAGEMENT

THE MOURYA INN AND ISO 9002

9002 certified organization it has to give the

following details to the Bureau of Indian Standards.

A) Details of the Company

NARAYANA INSTITUTE OF MANAGEMENT

Phases of ISO 9002 Certification:

NARAYANA INSTITUTE OF MANAGEMENT

Report to the company

Report to the company

Report to the company

NARAYANA INSTITUTE OF MANAGEMENT

Report to the Company

2.2 DEFINITIONS OF PERFORMANCE APPRASIAL

There are different definitions given by different authors .They are as

According to YODER Performance Appraisal refers to all formal procedures used in

SCOTT CLOTHIR and SPRIGEL defined Merit Rating Performance Appraisal as a