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INTRODUCTION
1.1 PERFORMANCE APPRAISAL Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the managements interest in the progress of the employees. People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. Therefore, performance management and performance appraisal is necessary to understand each employees abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance. Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees. Here at naukrihub, we attempt to provide an insight into the concept of performance appraisal, the methods and approaches of performance appraisal, sample performance appraisal forms and the appraisal softwares available etc. An attempt has been made to study the current global trends in performance appraisal.
1.1.1 EMPLOYEE PERFORMANCE If employee performance is found to be less than the expected level of performance then this must be investigated and, if appropriate, a formal appraisal should be carried out including 360-degree feedback. The root causes of performance must be identified as these will determine future actions. Root causes for less than expected performance may include:
Personal issues that are impacting performance such as bereavement, close family member sickness, financial or relationship worries Workplace issues that are impacting performance such as helping other colleagues to meet their objectives before own objectives, issues with the work environment such as an excessively noisy office or frequent interruptions
Overloaded with too many objectives or conflicting priorities, especially in a matrix management environment Team issues such as working relationship with other team members, dependencies on others to complete their objectives first, access to needed tools, experts or thirdparty suppliers
Employee development issues such as lack of training, experience or expertise to complete the required objective, or lack of people skills to work and deal effectively with others in the situations the employee is in
1.1.2 OBJECTIVES OF PERFORMANCE APPRAISAL: To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior subordinates and management employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To provide feedback to the employees regarding their past performance.
Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees. If employee development is required for performance improvement then solving
these performance problems should be straightforward with a clear understanding of root causes. Possible approaches include changing the work environment, better prioritisation of conflicting priorities, time off, additional training, shadow or buddy system, mentoring or coaching, changing team environment or set objectives and so on.
1 .2 INDUSTRY PROFILE 1.2.1 HISTORY The first practical automobile with a Petrolengine was built by Karl Benz in 1885 in Mannheim, Germany Benz was granted a patent for his automobile on 29 January 1886, and began the first production of automobiles in 1888, after Bertha Benz his wife, had proved with the first long-distance trip in August 1888 - from Mannheim to Pforzheim and back - that the horseless coach was absolutely suitable for daily use. Since 2008 a Bertha Benz Memorial Route commemorates this event. Soon after, Gottlieb Daimler and Wilhelm Mabuchi in Stuttgart in 1889 designed a vehicle from scratch to be an automobile, rather than a horse-drawn carriage fitted with an engine. They also are usually credited as inventors of the first motorcycle in 1886, but Italys Enrico Bernardi of the University of Padua in 1882, patented a 0.024 horsepower (17.9 W) 122 cc (7.4 cu in) one-cylinder petrol motor, fitting it into his son's tricycle making it at least a candidate for the first automobile, and first motorcycle;. [9]:p.26 Bernardi enlarged the tricycle in 1892 to carry two adults. 1.2.2 AUTOMOTIVE INDUSTRY The automotive industry designs, develops, manufactures, markets, and sells the world's motor vehicles. In 2009, more than 88 million motor vehicles, including cars and commercial vehicles were produced worldwide. In 2009-2010, a total of 90 million new automobiles were sold worldwide: 24 million in Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 14.4 million in Latin America, 6.4 million in the Middle East and 7.4 million in Africa.[2] The markets in North America and Japan were stagnant, while those in South America and Asia grew strongly. Of the major markets, Russia, Brazil, India and China saw the most rapid growth.
About 250 million vehicles are in use in the United States. Around the world, there were about 806 million cars and light trucks on the road in 2009; they burn over 260 billion gallons of gasoline and diesel fuel yearly. The numbers are increasing rapidly, especially in China and India. In the opinion of some, urban transport systems based around the car have proved unsustainable, consuming excessive energy, affecting the health of populations, and delivering a declining level of service despite increasing investments. Many of these negative impacts fall disproportionately on those social groups who are also least likely to own and drive cars. The sustainable transport movement focuses on solutions to these problems. In 2009, with rapidly rising oil prices, industries such as the automotive industry, are experiencing a combination of pricing pressures from raw material costs and changes in consumer buying habits. The industry is also facing increasing external competition from the public transport sector, as consumers re-evaluate their private vehicle usage.[7] Roughly half of the US's fifty one light vehicle plants are projected to permanently close in the coming years with the loss of another 200,000 jobs in the sector, on top of the 560,000 jobs lost this decade. As a result, in 2010, China became the largest automobile market in the world 1.2.3 TWO WHEELERS IN INDIA India is the second largest producer of two-wheelers in the world. In the last few years, the Indian two-wheeler industry has seen spectacular growth. The country stands next to China and Japan in terms of production and sales respectively. Majority of Indians, especially the youngsters prefer motorbikes rather than cars. Capturing a large share in the two-wheeler industry, bikes and scooters cover a major segment. Bikes are considered to be the favourite among the youth generation, as they help in easy commutation. Large variety of two wheelers is available in the market, known for their latest technology and enhanced mileage.
With over a billion plus population, the bike industry in India has witnessed enormous growth in the last decade. Bikes in India encompass a major portion of the Indian two-wheeler industry. With changing market dynamics, bikes have slowly started replacing the scooter and mopeds. Consuming a large share in the Indian two-wheeler industry, bikes have come to represent style and class for many Indian men and a few women as well. 1.2.4 INDIA YAMAHA MOTOR PVT. LTD. Yamaha made its initial foray into India in 1985. It entered into a 50:50 joint venture with the Escorts Group in 1996. In August 2001, Yamaha acquired its remaining stake becoming a 100% subsidiary of Yamaha Motor Co., Ltd, Japan (YMC). In 2008, YMC entered into an agreement with Mitsui & Co., Ltd. to become a joint investor in the motorcycle manufacturing company "India Yamaha Motor Private Limited (IYM)". IYM operates from its state-of-the-art-manufacturing units at Surajpur in Uttar Pradesh and Faridabad in Haryana and produces motorcycles both for domestic and export markets. With a strong workforce of more than 2000 employees, IYM is highly customer-driven and has a countrywide network of over 400 dealers. Presently, its product portfolio includes MT01 (1670 cc), YZF-R1 (998 cc), the all new YZF-R15 (150 cc), FZ16, FZ-S, Fazer (153cc), Gladiator Type SS & RS (125 cc), Gladiator Graffiti (125cc), G5 (106 cc), Alba (106 cc) and Crux (106 cc).
1.2.4.1 DEALERS Our Brand Image speaks for itself. Complementing the Marketing team is our vast and strong Dealer network - the backbone of our vital marketing operations.
Recent initiatives have been launched by Yamaha in the field of business-tobusiness as well as business-to-consumer cooperation with Dealers. The new showrooms based on YAMAHA VISUAL IDENTITY are one of the many steps in this direction.
Our dealer network works on the "3S" fundamentals of -SALES SERVICE and
SPARE PARTS under one roof. With a strongly dedicated team of Sales and Service engineers, IYM targets the fulfillment of customer's needs. Every single customer matters to us. Together the 3S operate in tandem to serve our customer and forge an everlasting bond with them. CUSTOMER SATISFACTION is our motto and we remain steadfast in our commitment to our valued customers...Offering Nothing But the Very BEST to Them.
1.2.4.2 EXPORTS IYM is an active player in the exports market. Currently, we export motorcycles to 50 countries including Argentina, Mexico, Philippines, Bangladesh, Sri Lanka, Columbia, Dominican Republic, Nigeria and lvory Coast. The export Product line boasts of RX 100, Crux, YD 125, Enticer and Libero. To consolidate our position in the exports arena, we are rapidly expanding our presence in Asia, Africa, Central and South America.
1.3.2 DEPARTMENT There are four departments in the company, they are, Customer Care Sales Service The customer care department is taking care of queries of customers and booking of the bikes. Sales department is taking care of delivering the bike in time. Service department is taking care of free service and maintenance of the bike at the customers satisfaction level. At present Abinaya Auto has 100 employees and widely distributing the bike all over Tamil Nadu. The company is giving opportunity to do the apprentice for the diploma holders. At presently there are 7 apprentices in the company. The company provides best model of bikes as well as services to the Yamaha Bike. The Company has the infrastructure for the service of the vehicles in good manner and ontime delivery. Abinaya Auto offer various facility to its customers like delivering the bike, giving free service to the customers to their complements, attending their queries and providing solution, etc. The company employs a strong sales force so that they can operate the extensive sales network successfully. The company went on developing with latest technology and young generations idealist works on this field which leads to high quality-level, quality control, which increases its reputation and goodwill and also established classical standards in the industry like perfection, reliability and quality.
The company also supplies the new category of bikes and spare parts which make more satisfaction to the customers.
To study the purpose of performance appraisal conducted at Abinaya Autos. To understand the opinion of employees towards performance appraisal at Abinaya Autos.
To understand the existing relationship between management and employees. To identify ways to improve the existing performance appraisal system.
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2. REVIEW OF LITERATURE
Performance appraisal is one of the most important requirements for all successful business and human resource policy (Kressler, 2003). Rewarding and promoting effective performance in organization, as well as identifying ineffective performers for resource management (Pulakos, 2003). The ability to conduct performance appraisal relies on the ability to assess an employees performance in a fair and accurate manner. Evaluating employee performance is a difficult task. Once the supervisor understands the nature of the job and the source of information, the information needs to be collected in a systematic way, provided as feedback, and integrated into the organizations performance management process for use in making compensation, job placement and training decisions and assignment (London, 2003). After a review of literature, a performance appraisal model will be described in detail. The model discussed is an example of a performance appraisal system that can be implemented aim a large institution of higher education, within the Student Affair division. The model can be applied to top-level, middle-level and lower-level employees. Evaluation instruments (forms) are provided to assist with implementation the appraisal system. Performance evaluations have been conducted since the times of Aristotle (Landy, Zedeck, Cleveland, 1983). The earliest formal employee performance evaluation program is thought to have originated in the United States military establishment shortly after the birth of the republic (Lopez, 1968). The measurement of an employees performance allows for rational administrative decisions at the individual employee level. It also provides for the raw data for the evaluation of the effectiveness of such personnel-system components and processes as recruiting policies, training programs, selection rules,
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promotional strategies, and reward allocations (Landy, Zedeck, Cleveland, 1983). In addition, it provides the foundation for behaviorally based employee counseling. In the counseling setting, performance information provides the vehicle for increasing satisfaction, commitment, and motivation of the employee. Performance measurement allows the organization to tell the employee some thing about their rates of growth, their competencies, and their potentials. There is little disagreement that if well done, performance measurements and feedback can play a valuable role in effecting the organization (Landy, Zedeck, Cleveland, 1983). PURPOSE Performance appraisals should focus on three objectives: performance, not personalities; valid, concrete, relevant issues, rather that subjective emotions and feelings; reaching agreement on what the employee is going to improve in his performance and what you are going to do (McKirchy, 1998). Both the supervisor and employee should recognize that a strong relationship exists between training and performance evaluation (Barr, 1993). Each employee should be allowed to participate in periodic sessions to review performance and clarify expectations. Both the supervisor and the employee should recognize these sessions as constructive occasions for two-way should include opportunities for self-assessment as well as supervisor feedback. The supervisor should keep in contact with the employee to assure the training experiences are producing desired impact (Barr, 1993). A portion of the process should be devoted to an examination of potential opportunities to pursue advancement of acceptance of more complex responsibilities. The employee development goals should be recognized as legitimate, and plans should be made to reach the goals through developmental experiences or education (Barr, 1993). Encouraging development is not only a supervisors professional responsibility, but it also motivates an employee to pursue additional commitments. In addition, the pursuit of these objectives will also improve the prospect that current employees will be qualified as candidates when positions become available. This approach not only motivates current performance but also assists the recruitment of current employees as qualified candidates for future positions (Barr, 1993).
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(Maddux, 1993). LEGAL IMPLICATIONS Any performance appraisal system used to make employment decisions about a member of a protected class (i.e. Based on age, race, religion, gender or national origin)
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must be a valid system (an accurate measure of performance associated with job requirements). Otherwise, it can be challenged in the courts based on Title VII of the1964 Civil Rights Act, the Civil Rights Act of 1991 and the Age Discrimination in Employment Act of 1975(London, 2003). Effectiveness of performance Appraisal system it is argued is a function of applying the right system in right context. - By Klein; the Art o Appraisal
Performance appraisal system are home work that provides the information you need in order to make appropriate administrative recommendations, hold meaningful feedback discussions with staff members, and determined were performance improvement is required - By Marion E. Haynes; Managing Performance
The effectiveness of an Appraisal System is determined by the quality of communication between the manager and staff member, not by multiple raters, complex scoring methods, or the form used. More Time Performance appraisal can actually be counter-productive for employees who are in the greatest need of training and further development -By Victor Buzzottan; Improving your Performance Appraisal -By John D. Drake; Performance Appraisal: One
One of the measure reason Performance management and Performance Appraisal fail is that too much time is spent on Appraising performance using vague criteria, and not enough time and effort put into helping employee understand what his job is about, and the goals and objectives he/she is expected to achieve to be successful. Learn to do goals setting painlessly. goals -By Robert Bacal; Learn to plan Performance and set employee
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Maximizing and measuring our own performance and that of the people who work for us is a basic tenant of the work environment. Always use of simple tool and approach that can be beneficial in achievement performance plan. -By Zack Mansdorf; Performance Management; Identifying work goals Most managers and supervisors today are attempting to quantify their departmental objective and pass them on their employees through performance standards. Despite the simplicity of this management- by objective approach, deadlines are missed, quality is relatively poor and productive is low. The reasons for this may not be the fault of the employees carrying out the work. The cause is most often associated with the immediate supervisors lack of attention to the realities surrounding objectives and performance standards require a careful analysis of all the relevant issues. -By Gregory Isaac; Plan for performance Organizations striving to develop an open and participative approach have begun to give employees the chance to say what they think of their managers. Such appraisals can only work in a culture where mangers are willing to listen and learn and effect any necessary changes as a result. Organizational culture At one stage performance appraisal relied mainly on personality characteristics. Sub ordinates were being appraised by their superior on the extent to which they exhibited characteristic like, tact, willingness, enthusiasm, and maturity. Mangers were being put into position of psychologists and required to make subjective ratings without any point of reference expect their own opinion -By Bob Nelson; Performance Assessment Performance appraisal is a part is a part of overall performance management system of an organization. Through the appraisal process, gap between an individuals agreed performance standard his actual performance is assessed and appropriate strategies are drawn for subsequent performance cycle. This is a useful performance enhancement exercise. In many Organizations, PMS is linked with other systems like salary & Benefits, - By Madhukar Shukla; Upward Appraisal and
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Training &Development and Succession Planning. -By H.K.Shukla; Straties Human Resource Management Bi-directional performance recognizes that for performance to improve, both manager and employee must receive feedback on how well they are fulfilling their obligations to their organizations and to each other. evaluates you -By Robert bacal; when Boss
3. RESEARCH METHODOLOGY
RESEARCH Research in common parlance refers to a search for knowledge Redman and Mory define Research as a systematized effort to gain new knowledge. Research is an academic activity and as such the term should be used in a technical sense. According to Clifford woody, Research comprises defining and redefining problem, formulating hypothesis or suggested solutions; collecting, organising and evaluating data; making deductions and research conclusion; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. Research is thus an original contribution to the existing stock of knowledge making for its advancement. It is pursuit of truths with the help of study, observation comparison and experiment in short the search for knowledge through objective and systematic method of finding solution to a problem is research. 3.1 RESEARCH DESIGN: A Research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the Research purpose with economy in
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procedure. In fact the Research design is the conceptual structure within which Research is conducted: it constitutes the blueprint for the collection measurement and analysis of data. It must be able to define clearly what he wants to measure and must find adequate methods for measuring it along with a clearly cut definition of population he wants to study. Since the aim is to obtain complete and accurate information in the said studies, the procedure to be used must be carefully planned. The research design must make enough provision for protection against bias and must maximise reliability with due concern for the economical completion of the research study. Descriptive research is adopted for this study. It includes surveys and fact finding enquires of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. The main characteristic of this method is that the researcher has no control over the variables. He can only report what has happened or what is happened. 3.2 SAMPLING DESIGN A sample design is a definite plan for obtaining a sample from the sampling frame, it refers to the technique or procedure the researcher would adopt in selecting some sampling units from which inferences about the population is drawn. 3.2.1 POPULATION AND SAMPLE SIZE A decision has to be taken concerning a sampling unit before selecting sample. The population for this study includes the employees from three branches of Abinaya Autos. The total population of Abinaya Autos are 100. All 100 employees were undertaken for the study. In this study the population and sample are equal.
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The task of data collection begins after a research problem has been defined and research design / plan chalked out. While deciding about the method of data collection to be used for the study, the researcher should keep in mind two types of data viz, Primary and Secondary
PRIMARY DATA The primary data are those which are collected afresh and for the first time and thus happen to be original in character. The tool used for collecting primary data is a structured questionnaire. SECONDARY DATA The secondary data on the other hand are those which have already been collected by someone else and which have already been passed through the statistical process. The secondary data has been collected from the company records, journals. The secondary data collected for this research was obtained from journals, magazines, company reports and websites 3.4 STATISTICAL TOOLS Chi square test Percentage analysis Weighted average ranking method 3.4.1 CHI SQUARE TEST The Chi-square test is an important test amongst the several tests of significance developed by statisticians. Chi-square is a statistical measure used in the context of sampling analysis for comparing a variance to a theoretical variance. As a non-parametric test, it can be used to determine if categorical data shows dependency or the two
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classifications are independent. The test is, in fact, a technique through the use of which it is possible for all researchers to (i) (ii) (iii) Test the goodness of fit Test the significance of association between two attributes and Test the homogeneity or the significance of population variance. As a test of independence,
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attributes are associated. In such a situation, we proceed with the null hypothesis that the two attributes are independent. If the calculated value is less than the tabulated value at certain degrees of freedom, the null hypothesis is accepted and vice versa. 2 is calculated as follows:
2=
(O-E) 2 E
Where Oi Ei
= = =
2
is always positive and it ranges from 0 to 00 E = (Row total * Column total Grand total
The The
test depends on the set of observed and expected values and on the degrees of distribution is the limiting approximation designation
freedom.
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3.4.2 PERCENTAGE ANALYSIS It refers to a special kind of ratio. Percentage is used in making comparison between two or more series of data; percentages are used to determine relationship
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between the series if data finding the relative differences becomes easier through percentage. It is expressed as, Percentage (%) = No. of respondents x 100
Total no. of respondents 3.4.3 WEIGHTED AVERAGE RANKING METHOD Weighted average can be defined as an average whose component items are multiplied by certain values (weights) and the aggregate of the products are divided by the total of weights. One of the limitations of simple arithmetic mean is that it gives equal importance to all the items of the distribution. In certain cases relative importance of all the items in the distribution is not the same. Where the importance of the items varies it is essential to allocate weight applied but may vary in different cases. Thus weighted is a number standing for the relative importance of the items. Weighted Average method is used to sum up the views of the various respondents to obtain mean score for the particular statement. Mean score = Total score / Number of respondent Where, Total score = Number of respondent x Weighted average
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3.5
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Age 20 25 Age 30 35 Age 40 45 Age Above 45 Age Total Source : Primary Data INTERPRETATION:
From the above table, it can be inferred that 33% of the respondents are in the age between 30 35, 30% of the respondents are in the age between 40 45, 25% of the respondents are in the age between 20 25 and 12% of the respondents are in the age above 45.
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Experience Below 5 Years 5-10Years 10 15 Years Above 15Years Total Sources: Primary Data INTERPRETATION:
From the above table, it can be inferred that 54% of the respondents are having 510 years experience persons, 28% of the respondents have below 5 years of experience persons, 18% of the respondents are having10 15 years of experience and no respondents have experience more than 15 years.
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4 28 100
4 28 100
From the above table, it can be inferred that 49% of the respondents are UG degree holders, 28% of the respondents are some others (iti), 19% of respondents are PG degree holders and 4% of the respondents are engineering graduates.
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Performance appraisal times Once year Twice a year No specific time Total Sources: Primary Data INTERPRETATION:
From the above table, it can be inferred that 100% of the respondents agree that performance appraisal is conducting once a year.
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To identify motivating methods To decide monetary benefits Identifying barriers of performance All of the above Total Sources: Primary Data INTERPRETATION:
100 100
100 100
From the above table, it can be inferred that 100% of the respondents agree that the reason for conducting performance appraisal includes all the factors such as to identify motivating methods, to decide monetary benefits and identify barriers for performance.
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13 100
13 100
From the above table, it can be inferred that for 87% of the respondents performance appraisal is conducted during working hours and for 13% respondents performance appraisal is conducted during non-working hours.
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Who Performance appraisal conducts Superior Peers Everyone Outsider Total Sources: Primary Data INTERPRETATION:
From the above table, it can be inferred that for 100% of the respondents performance appraisal is conducted by outsider.
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Performance appraisal conducting Always Sometimes Never Total Sources: Primary Data INTERPRETATION: From the above table, it can be inferred that 77% of respondents feel that the reason for performance appraisal is discussed sometimes, 20% of the respondents feel it is discussed always and 3% of respondents say reason is never discussed. 20 77 3 100 20 77 3 100
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Meetings of No. Of Respondents employee performance Nil Once Twice Thrice Total Sources: Primary Data INTERPRETATION: From the above table, it can be inferred that for 100% of the respondents meeting on performance is conducting once a year. 100 100 Percentage (%) 100 100%
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TABLE 3.5.11 PERFORMANCE APPRAISAL PROGRAMS RELATED WITH ORGANIZATIONAL GOALS Goals To a high extent To some extent To a low extent Total Sources: Primary Data INTERPRETATION: From the above table, it can be inferred that 69% of the respondents feel the performance appraisal relates to some extent to organization goals, 19% feel to a low extent and 12% feel to a high extent it relates. No. Of Respondents 12 69 19 100 Percentage (%) 12 69 19 100
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100 100
100 100
From the above table, it can be inferred that 100% of the respondents say they are never involved in designing the appraisal system.
S. No 1 2 3
No. Of Respondents 87 13 -
Percentage (%) 87 13 -
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4 5
100
100
From the above table, it can be inferred that 87% of the respondents feel that performance appraisal is highly relevant to employee job and 13% feel it is relevant.
FIGURE 3.5.8
EMPLOYEE JOB
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44
100 100
100 100
From the above table, it can be inferred that 100% of the respondents mostly share their opinion and suggestions to their managers.
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100 100
100 100%
From the above table, it can be inferred that 100% of the respondents are given training to fill the appraisal form.
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TABLE 3.5.16 APPRAISERS AWARENESS ON EMPLOYEE JOBRESPONSIBILITIES AND DUTIES Aware Completely aware Aware to an extent Not aware Total Sources: Primary Data INTERPRETATION: From the above table, it can be inferred that 100% of the respondents feel that the appraiser is not aware of their job responsibilities and duties. No. Of Respondents 100 100 Percentage (%) 100 100
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11 89 100
11 89 100
From the above table, it can be inferred that 89% of the respondents feel that feedback is provided occasionally whereas 11% feel that feedback is provided frequently.
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49
26 100
26 100
From the above table, it can be inferred that 44% of the respondents feel the rater is less involved, 34% of the respondents feel they are highly involved and 26% of the respondents they are not involved.
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51
Importance Highly important Less important Not important Total Sources: Primary Data INTERPRETATION:
From the above table, it can be inferred that 90% of the respondents feel performance appraisal is highly important and 10% of the respondents feel it is less important.
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properly executed in your organization Yes No Total Sources: Primary Data INTERPRETATION:
From the above table, it can be inferred that 78% of the respondents feel performance appraisal is properly executed while 22% feel it is not properly executed.
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Support Highly supportive Less supportive Not supportive Total Sources: Primary Data INTERPRETATION:
From the above table, it can be inferred that 64% of the respondents feel top management is highly supportive and 36% feel they are less supportive.
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TABLE 3.5.22 UPDATING OF PERFORMANCE APPRAISAL Reviewed and updated Frequently Occasionally Never Total Sources: Primary Data INTERPRETATION: From the above table, it can be inferred that 54% of the respondents feel the performance appraisal is reviewed occasionally while 46% of respondents feel they are reviewed frequently. No. Of Respondents 46 54 100 Percentage (%) 46 54 100
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TABLE 3.5.23 POTENTIAL IDENTIFIED BY PERFORMANCE APPRAISAL Effectiveness Effectively Less effectively Neutral Total Sources: Primary Data INTERPRETATION: From the above table, it can be inferred that 54% of the respondents feel that potential is identified less effectively, 36% feel effectively, and 10% feel neutral. No. Of Respondents 36 54 10 100 Percentage (%) 36 54 10 100
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3.5.24 SATISFACTION OF PERFORMANCE APPRAISAL PROGRAM TABLE 3.5.24 SATISFACTION OF PERFORMANCE APPRAISAL PROGRAM
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Satisfaction Unsatisfactory Needs Improvement Meets Expectations Outstanding Total Sources: Primary Data INTERPRETATION:
From the above table, it can be inferred that 51% of the respondents feel the performance appraisal Needs Improvement, 20%of the respondents feel it is Outstanding, 17% of the respondents feel it is Unsatisfactory and 12% of the respondents say it Meets Expectations.
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TABLE 3.5.25 PERFORMANCE APPRAISAL ENCOURAGES TO REACH GOAL Reaching your goals Strongly agree Agree Neutral Disagree Strongly disagree Total Sources: Primary Data INTERPRETATION: From the above table, it can be inferred that 57% of the respondents agree that performance appraisal encourages to reach goals, 21% agree, 12% disagree and 10% feel neutral. No. Of Respondents 57 21 10 12 100 Percentage (%) 57 21 10 12 100
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57 10 100
57 10 100
From the above table, it can be inferred that 57%of the respondents feel they are given feedback occasionally, 33% feel frequently and 10% feel rarely.
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TABLE 3.5.27 POSITIVE & NEGATIVE POINTS DISCUSSED Positive & negative points Yes No Total Sources: Primary Data INTERPRETATION: From the above table, it can be inferred that 100% of the respondents feel that both positive and negative points are discussed. No. Of Respondents 100 100 Percentage (%) 100 100
3.6.28 ATTITUDE WHEN NEGATIVE POINTS ARE DISCUSSED TABLE 3.6.28 ATTITUDE WHEN NEGATIVE POINTS ARE DISCUSSED Negative points discussed No. Of Respondents Percentage (%)
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Discouraged determined to perform better Ready to learn Do not want to contribute Total Sources: Primary Data INTERPRETATION:
46 27 10 17 100
46 27 10 17 100
From the above table, it can be inferred that 46% of the respondents feel discouraged, 27% of the respondents feel determined to perform better, 17% of the respondents feel they do not want to contribute and 10% of the respondents feel they are ready to learn.
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Rate appraisal program Reliable Effective Accurate Motivating Unbiased Total Sources: Primary Data INTERPRETATION:
From the above table, it can be inferred that 35% of the respondents feel the performance appraisal programme is motivating, 25% of respondents feel it is effective, 25% of the respondents feel it is accurate, 10% of the respondents are feel it is reliable and 5% of the respondents feel it is unbiased.
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Table 3.6.1.1 Cross tabulation between the changes taken for performance appraisal and improvement of performance appraisal
Highly effective
Effective
Moderate
In Effective
Change in motivating strategy Re-structuring of organi sation or indivi dual objecti ves Improvement in managementemployee relationship Making changes in dissatisfied areas No decision taken
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33
12
25
11 4 0
8 1 0 16
0 0 0 15
6 4 0 25
0 8 0 10
25 17 0 100
Total
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STEP: 1
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SETTING AN HYPOTHESIS
H0: There is no significant relationship between the changes taken for performance appraisal and improvement of performance appraisal. H1: There is significant relationship between the changes taken for
performance appraisal and improvement of performance appraisal. STEP: 2 TO FIND THE EXPECTED FREQUENCY Expected frequency = Corresponding row total * Corresponding column total Total number of samples
O E 2
= =
= Chi square
O
7 5
E
11.22 5.28
O-E
-4.22 -0.28
(O-E)2
17.81 0.08
(O-E)2/E
1.59 0.01
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9 12 0 12 2 6 3 2 11 8 0 6 0 4 1 0 4 8 0 0 0 0 0
4.95 8.25 3.30 8.50 4.00 3.75 6.25 2.50 8.50 4.00 3.75 6.25 2.50 5.78 2.72 2.55 4.25 1.70 0.00 0.00 0.00 0.00 0.00
TOTAL
4.05 3.75 -3.30 3.50 -2.00 2.25 -3.25 -0.50 2.50 4.00 -3.75 -0.25 -2.50 -1.78 -1.72 -2.55 -0.25 6.30 0.00 0.00 0.00 0.00 0.00
16.40 14.06 10.89 12.25 4.00 5.06 10.56 0.25 6.25 16.00 14.06 0.06 6.25 3.17 2.96 6.50 0.06 39.69 0.00 0.00 0.00 0.00 0.00
3.31 1.70 3.30 1.44 1.00 1.35 1.69 0.10 0.74 4.00 3.75 0.01 2.50 0.55 1.09 2.55 0.01 23.35 0.00 0.00 0.00 0.00 0.00
54.04
83
Degrees of freedom = (R-1) (C-1) = (4-1) (5-1) = 12 Tabulated value at 5% level of significance and degree of freedom 12 is 21.026 STEP: 5 The calculated value is greater than the tabulated value: 54.04 > 26.296 RESULT Therefore, reject the Null Hypothesis H0 and accept the alternate Hypothesis H1
INFERENCE There is significant relationship between the changes taken for performance appraisal and improvement of performance appraisal.
3.6.1.3 Cross tabulation between the proper execution of performance appraisal and rating employee performance
84
Yes
No
Total
Based on abilities and skills 8 Based on management reference Based on superiority 21 Based on contribution 30 10 22 40 100 4 25 19 2 6 10 25
Total
78
H0: There is no significant relationship between the proper execution of performance appraisal and rating employee performance.
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H1:
Expected frequency
O E 2
= =
= Chi square
E
7.80 2.20 19.50
O-E
0.20 -0.20 -0.50
(O-E)2
0.04 0.04 0.25
(O-E)2/E
0.01 0.02 0.01
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6 21 4 30 10
0.82
= (4-1) (2-1) = 3
Tabulated value at 5% level of significance and degree of freedom 3 is 7.82 STEP: 5 The calculated value is lesser than the tabulated value: 0.82 < 7.82 RESULT Therefore, accept the Null Hypothesis Ho and reject the alternate Hypothesis H1 INFERENCE There is no significant relationship between the proper execution of performance appraisal and rating employee performance.
Table 3.6.1.5 Cross tabulation between the Rate appraisal program and performance appraisal developed in relevance to employee job
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Reliable
Effective
Accurate
Motivating
Unbiased
Total
8 2 0 0 0 10
22 3 0 0 0 25
20 5 0 0 0 25
34 1 0 0 0 35
3 2 0 0 0 5
87 13 0 0 0 100
No Idea
Irrelevant
Highly Irrelevant
Total
88
H0: There is no significant relationship between the Rate appraisal program and performance appraisal developed in relevance to employee job. H1: There is significant relationship between the Rate appraisal program and performance appraisal developed in relevance to employee job.
Expected frequency
O E 2
= =
= Chi square
O
8 22
E
8.70 21.75
O-E
-0.70 0.25
(O-E)2
0.49 0.06
(O-E)2/E
0.06 0.00
89
20 34 3 2 3 5 1 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
21.75 30.45 4.35 1.30 3.25 3.25 4.55 0.65 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL
-1.75 3.55 -1.35 0.70 -0.25 1.75 -3.55 1.35 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.06 12.60 1.82 0.49 0.06 3.06 12.60 1.82 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.14 0.41 0.42 0.38 0.02 0.94 2.77 2.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7.94
STEP: 4 Level of significance = 0.05 Degrees of freedom = (R-1) (C-1) = (5-1) (5-1) = 3
90
Tabulated value at 5% level of significance and degree of freedom 16 is 26.29 STEP: 5 The calculated value is lesser than the tabulated value: 7.94 < 26.296 RESULT Therefore, accept the Null Hypothesis Ho and reject the alternate Hypothesis H1 INFERENCE There is no significant relationship between the Rate appraisal program and performance appraisal developed in relevance to employee job.
Table 3.6.1.7 Cross tabulation between the feel that performance appraisal encourages and obtain appraisal feedback.
91
Frequently
occasionally
Rarely
Never
Total
17 7 4 5
37 11 4 5
3 3 2 2
0 0 0 0
57 21 10 12
Total
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H0: There is no significant relationship between the feel that performance appraisal encourages and obtains appraisal feedback. H1: There is significant relationship between feel that performance appraisal encourages and obtain appraisal feedback.
Expected frequency
O E 2
= =
= Chi square
O
17 37 3
E
18.81 32.49 5.70
O-E
-1.81 4.51 -2.70
(O-E)2
3.28 20.34 7.29
(O-E)2/E
0.17 0.63 1.28
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0 7 11 3 0 4 4 2 0 5 5 2 0 0 0 0 0
0.00 6.93 11.97 2.10 0.00 3.30 5.70 1.00 0.00 3.96 6.84 1.20 0.00 0.00 0.00 0.00 0.00
TOTAL
0.00 0.07 -0.97 0.90 0.00 0.70 -1.70 1.00 0.00 1.04 -1.84 0.80 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.94 0.81 0.00 0.49 2.89 1.00 0.00 1.08 3.39 0.64 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.08 0.39 0.00 0.15 0.51 1.00 0.00 0.27 0.49 0.53 0.00 0.00 0.00 0.00 0.00
5.50
STEP: 4 Level of significance = 0.05 Degrees of freedom = (R-1) (C-1) = (5-1) (4-1) = 12 Tabulated value at 5% level of significance and degree of freedom 12 is 21.026 STEP: 5
94
The calculated value is lesser than the tabulated value: 5.50 < 21.026 RESULT Therefore, accept the Null Hypothesis Ho and reject the alternate Hypothesis H1 INFERENCE There is no significant relationship between the feel that performance appraisal encourages and obtains appraisal feedback.
4.1 FINDINGS
Majority (89%) of respondents are male. Most of the respondents (33%) belong to the age group of 30 to35. 54% of the respondents have above 5 to 10 years of work experience.
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Majority (49%) of the respondents are under graduates. All of the respondents have undergone performance appraisal program once in a
year.
100% of the employees interpret the reason for conducting performance appraisal
includes all the factors such as to identify motivating methods, to decide monetary benefits and identify barriers for performance.
For 87% of the respondents performance appraisal was conducted during working
hours.
For 100% of the respondents the performance appraisal is conducted by outsider. Most (77%) of the respondents feel that the reason for performance appraisal is
discussed sometimes.
Once in a year the meeting is scheduled for all employees to discuss their
performance.
69% of the respondents feel that performance appraisal is related to organizational
87% of the respondents feel that the performance appraisal system is developed
highly relevant to the employees job.
All respondents mostly share their opinion and suggestions freely during the
performance appraisal. All respondents have got the training to fill up the performance appraisal forms.
All of the respondents feel that the appraiser is not aware of the jobs and duties of
89% respondents feel the superior will provide informal feedbacks for
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Most (44%) of the respondents feel that the raters are less involved while
appraising employees.
Most (51%) of the respondents suggest that performance appraisal system needs
improvement
57% of the respondents strongly agree that performance appraisal system
obtained occasionally.
All of the respondents feel both positive & negative points discussed to the
employees.
46% of the respondents are discouraged when negative points are discussed. Majority of the respondents 35% feel the rating appraisal system is motivating.
criteria.
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performance appraisal.
Majority of the respondents 34% feel the performance appraisal system is highly
4.2 SUGGESTIONS
Performance appraisal could be conducted by an person inside the organisation and one who is familiar with the employees. Objective of conducting the performance appraisal could be discussed and doubts can be clarified. Performance appraisal could be updated regularly to match individual and organisational goals. Suggestion could be obtained from employees regarding framing the performance appraisal system.
The appraiser must be familiarized with the employees job responsibilities and
duties before conducting performance appraisal.
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4.3 CONCLUSION
Performance appraisal may be understood as the assessment of an individuals performance in a systematic way. The performance being measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgement, versatility, health and the like. It is also help the developing the strengths & weakness of the employees Abinaya Autos have been conducting performance appraisal for the past four years. From the study it has been indentified that the performance appraisal is able to identify employees potential and find the motivating factors of employees. The major drawback is in terms of the appraiser and his knowledge regarding employees job responsibilities and duties. Abinaya Autos has been running successfully for past 9 years and has created a good name among its customers and society. People having poor background are given training and provided with jobs. Performance appraisal can be conducted more effectively by using the right tools and properly reviewing and updating the performance appraisal program.
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Suggestion form employees and experienced personnel can further enhance and make the performance appraisal an ideal evaluation system.
APPENDIX
: :
( ) Male ( ) 20 30 ( ) 31 40 ( ) 41 50 ( ) 51 60
Female ( )
Experience
Qualification
________________
1. How many times dose performance appraisal takes place in your organization?
a) Once a year
b) Twice a year
c) No specific time
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a) Superior
b) peers
c)everyone
d) outsider
5. Are you informed the reason for conducting performance appraisal programs?
a) Always
b) Sometimes
c) Never
6. How many meetings are scheduled in a year to discuss employee performance? a) Nil b)once c) twice d) thrice
7. Does the performance appraisal programs relate to organizational goals? a) To a high extent b) to some extent c) to a low extent
8. Are you involved along with the manager in designing the appraisal system at the organization? a) Always b) sometimes c) Never
c) no idea
10. Do you share your opinion and suggestions freely to the managers during the appraisal program? a) Mostly b) rarely c) never
11. Are you given training of how to fill up performance appraisal forms? a) Yes
b) No
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12. Is the appraiser aware of your job responsibilities and duties? a) Completely aware b) Aware to an extent c) Not aware
13. Other than performance appraisal does your superior provide you with informal
14. Are the raters involved while appraising employees? a) Highly involved b) Less involved c) not involved
b) less important
c) not important
a) Yes
b) no
c) not supportive
18. Is the performance appraisal reviewed and updated now and then?
a) Frequently
b) Occasionally
c) never
c) neutral
20. Sate your satisfaction through the performance appraisal program at the
organization?
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e) Strongly disagree
22. Do you obtain appraisal feed back? a) Frequently b) occasionally c) Rarely d) Never
23. Are both five & negative points discussed to the employees? a) Yes b) no
24. How do you feel when negative points are discussed? a) Discouraged b) determined to perform better c) ready to learn d) do not want to contribute 25. Rate your appraisal program a) Reliable b) Effective c) Accurate d) Motivating e) Unbiased
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26. Do you feel comfortable in discussing your problems with your superior?
c) neutral
d) Based on contribution
28. What changes have been taken in the organization as a result of performance
c) Improvement in management-employee relationship d) Making changes in dissatisfied areas e) No decision taken 29. In general, how effective has your organization performance appraisal system in improving overall performance a) Highly ineffective b) Ineffective c ) Moderate d) Effective e) Highly effective
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REFERENCES
BOOKS
1. Performance Management, Concepts, Practices and Strategies for Organisation success
3. Kothari, C.R., Research Methodology - Methods & Techniques , New Delhi, New Age
international (P) Ltd., Publishers, Second Edition,2004.
4. Statistical Methods for Management, By P.N. Arora & S.Arora New Delhi, Sultan
Chand & Sons Publishers, 2005.
WEBSITE www.yamaha.com
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www.citehr.com www.performance-appraisal.com
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