4.

3 STATISTICAL TOOLS

Chi square test:

Null Hypothesis (Ho):

There is no significant difference between Experience of the respondent and their

perception about current appraisal system.

Alternative Hypothesis (H1):

There is a significant difference between Experience of the respondent and their perception
about current appraisal system.

Formula:

χ2 =
 Experience below 20 between between31- between above 50 Total
Perception 21-30 40 42-50

Opportunities to 4 5 3 5 4 21
perform better
Task setting will 4 2 3 4 5 18
induce people in
better way
It increases Job 3 2 2 1 3 11
satisfaction

TOTAL 11 9 8 10 12 50
OBSERVED EXPECTED (O-E)^2 (O-E)^2

4 3 1 0.333
5 7 4 0.571
3 3 0 0
5 4 1 0.25
4 6 4 0.666
2 5 9 1.800
4 1 9 9.000
3 4 1 0.5
4 2 4 2
5 4 1 0.25
3 3 0 0
2 3 1 0.333
2 1 1 1
1 3 4 1.333
3 1 4 4
50 50 44 22.036
Level of significance = 5%

Calculated value of χ2 = 22.036

Degree of freedom (DOF) = (C-1) x (R-1)

= (3-1) x (5-1)

=2x4

= 8

The table value of χ2 (8,0.005) = 15.51

Since the calculated value of χ2 (22.056) is greater than the table value of χ2 (15.51) ,

Null hypothesis (Ho) is rejected.

Conclusion:
There is a significant difference between Experience of the respondent and their perception
about current appraisal system.
 SIMPLE RANKING METHOD

Simple ranking method is a measure of the exists between the two sets of ranks. The factors are
arranged according to the rank by the observations of X and Y observations respectively.

Formula:

Simple ranking method = (F×W) / N

F = frequency

W = weight

N = Number of factors.
Purpose of Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6
performance
appraisal system

Improve 10×6/6 8×5/6

organizational
effectiveness

Improve personal
effectiveness

Training and
development needs

Pay
adjustments/rewards

Effect job rotations

Promotional
opportunity