INTRODUCTION

Performance management can be defined as a strategic and integrated approach to

delivering sustained success to organizations by improving the performance of the

human capital and by developing the capabilities of teams and individuals within that

organization (Armstrong and Baron, 2000). The process of performance management

therefore focuses not only with ‘WHAT’ is produced but, also ‘HOW’ it is produced.

It seeks to ensure that what has been produced is in line with the organization’s needs

and these products have been produced in line with the organization’s way of doing

things.

Performance management can be achieved through many different ways. These

include performance appraisal system and coaching. Performance appraisal system

can be described as a fairly old system of measuring employees’ performance that has

been in use in many organizations. However, Performance appraisal has not brought

in the amount of positive results that was expected of it. Armstrong and Mulis

(1994:86) quoted one manager describing performance appraisal as “a dishonest

annual ritual”. The question that arises then is: “If Managers (the custodians of the

system) do not have confidence in their own system, what more employees (who

happen to be victims of the system)?”

The meaning of the word “appraisal” is “to fix a price or value for something”. This is

used in finance in terms such as project appraisal or financial appraisal where a value

is attached to a project. Similarly performance appraisal is a process in which one

values the employee contribution and worth to the organization.

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Performance appraisal can be defined as a system of measuring employee’s

performance relative to the assigned or agreed objectives. The process

starts with the supervisor and or with the subordinate agreeing on specific

objectives that need to be met on an agreed time period. The objectives

that are used in the Performance appraisal stem from the main

organizational objectives that are reduced to Departmental goals and now

to individual goals.

The performance appraisal system has to be transparent and the employee should be

taken into full confidence. In many cases employees themselves are given a chance to

conduct a self-appraisal. Performance appraisal is a case of joint problem solving by

the organization and the employee. However the organization must also take care of

future potential and not get bogged down by current performance.

Normally the immediate supervisor does the appraisal. Some organizations also have

a peer group performance appraisal where colleagues rate the performance.

The HR person must also ensure that line managers are properly trained for carrying

out the appraisal including interviewing techniques and on how to give feedback. The

managers must also be trained to look at the cases objectively outside of their personal

opinion of the candidate.

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 COMPANY PROFILE

Jindal Brothers Pvt. Ltd. specializes in Design, Engineering, Fabrication and Erection
of Pre-Engineered Metal Building Systems. The Group is well known in the Middle
East & India for the quality of the products and services offered. In 1998, Jindal
Brothers Pvt. Ltd started its journey in India by setting up State of Art manufacturing
facility at Manesar, Gurgaon. Design and Detailing work is carried out by highly
skilled Engineers with computed aided design and drafting facilities at the Company’s
Head Office at New Delhi. Their objective is to deliver cost effective, quality Pre-
Engineered Metal Buildings within agreed time schedules to their Customers. Jindal
Brothers Pvt. Ltd. maintains high degree of professionalism at all levels, a
commitment needed to maintain highest possible standards. Every project is executed
with Micro Planning, to achieve the Milestones set out in the contract. This combined
with quality of their products has earned us reputation in the Market Place. Corporate
giants, both National and Multinational, have complimented their strategy of
providing single point responsibility for Supply and Erection with highly motivated
and trained In House Project Management Team to handle projects, whether it is
small or big, simple or complex. More than 500 Pre-Engineered Buildings have been
installed across the length and breadth of their Country. This experience corroborates
their claim. Regional / Area offices across the Country are fully equipped to provide
pre-order and post order service to their valued Customers. Organizational
effectiveness depends upon the level of performance of its employees. Hence the level
of performance has to be ensured. Periodic stock taking of the qualitative state of the
man power is of vital importance to an organization and the organization tries to
collect the relevant data through the tool of performance appraisal reports. Thus
performance appraisal is essential for performance effectiveness and efficiency of the
organization and also for carrying out administrative decisions regarding human
resources. The correctness of the decision will depend heavily upon the validity of the
data gathered through appraisal system.

The JINDAL BROTHERS is a relatively an older organization and has been

restructuring its Human Resources Systems and Policies in alignment with the current
business environment. I have therefore taken up this project with an aim to study the

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existing system of performance appraisal so that this might help other organizations to
follow the same.

Services

Pre-Engineered steel buildings are designed and fabricated to client’s requirements in

accordance with the Universal standards. A pre-engineered steel building consists of

four major groups of components namely primary members, secondary members,

metal roofing/wall cladding and connection fasteners. These components are designed

that they are compatible with each other. The fabrication of these components is

carried out in factory under strict quality control as per detailed shop drawing. These

components are transported to site with proper markings and assembled at site as per

erection drawings.

Knowledge Hub / Brain Ware

They call this the knowledge Hub, a world class Design & Engineering Office
manned with team of experienced professionals and equipped with latest sophisticated
design tools which distinguishes Jindal Brothers Pvt. Ltd. from others.

Stadd Pro, MBS, AUTOCAD, Primavera, MS Projects are among the few
Engineering & execution tools in use at Jindal Brothers Pvt. Ltd. that delivers the
fastest solution at the best of engineering practices applied in a true international
design environment.

The Brain House offers intelligent engineering solutions and supports post order
functions with general arrangement, fabrication and erection drawings. The
computerized drafting, detailing and logic programs enable user friendly details to
simplify manufacturing process and erection methods.

The Jindal Brothers Pvt. Ltd. knowledge archives has vanity of standards and design
codes such as AISC, AISI, MBMA, AWS, UBC, ASCE, IBC, IS and many others to
suit customer’s need of a Pre-Engineered building at any place or country.

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The Jindal Brothers Pvt. Ltd.’s consistent efforts in research & development and
global sourcing of material have positioned the Organization as a lead runner in
introducing innovative ideas and products in the market place.

Manufacturing Facility:

 Their State-of-the-art manufacturing facility is located at Manesar. It houses

special equipments to produce quality pre-engineered buildings such as:

 Automatic Beam Welding Line

 Plate Shearing Line

 Radial Drilling Machine

 Cold Roll Forming Line

 Hydraulic Press Break Line

 Automatic Shot Blasting Line

 The welding process is as per American Welding Society Standards. (AWS).

All welders are qualified to required standards.

 Well defined process on the shop floor ensures smooth flow of material and

productivity.

 All structural components to complete Pre-engineered building are produced

in-house and go through stringent quality checks prior to dispatch.

 All major raw materials and bought out items are sourced from a Panel of

approved supplier to ensure quality and timely supplies.

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Automatic Purlin Roll
Roofing Profile
Welding Forming
Line
Machine Machine

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 JINDAL BROTHERS India Projects:::

Location Client
Washim ITC

Grain Godown

Cafeteria

Dept. Store

Bawal YKK (SMCC Construction)

Jagdishpur ITC

Grain Godown

Cafeteria

Vatva , Ahmedabad MIDCO Containers Pvt. Ltd

Delhi Giex Foods

Pune S.M. Auto Eng.

Mandsour ITC

Grain Godown

Cafeteria

Dept. Store

Amaravati ITC

Dept. Store

Gurgaon SMCC

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 OBJECTIVES OF THE STUDY

1. To study the 360 Degree Appraisal systems and evaluate its benefits in context of

Jindal Brothers.

2. To study the effectiveness of the existing system of performance appraisal system

at Jindal Brothers.

3. On the basis of what company increase salary and provide training to its

employees. And what is basis of promotion in company.

4. To understand more and more about his role and become clear about his
functions.

5. To understand his own strengths and weaknesses with respect to his role and
functions of the company.

6. To increase mutuality between employee and his superiors.

7. Provides an opportunity to the employees for self reflection and individual goal
setting.

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 RESEARCH METHODOLOGY

In order to accomplish the objectives of the study, it is essential to articulate the

manner in which it is to be conducted, i.e., the research process is to be carried-out in

a certain framework. The research methodology, which follows, is the backbone of

the study.

Data Collection Sources

Research work was done from two sources: -

(1) Primary data

(2) Secondary data

Primary data was collected by questionnaire and interview in the organizations. The
questionnaire comprised of closed and attitude questions. The opinion on existing
Performance Appraisal practices and their affectivity were collected through
questionnaire which was circulated to all the employees at all levels and the results
have been analysed on the basis of agree and disagree. The methodology for
collection of data also included interviews and discussion with the top management of
the organization.

Secondary data: It was collected by reviewing different literatures, from published

books, management journals, articles published by the other researchers on 360
Degree Appraisal.

Sampling:

The total sample size for this project was 100 employees at Jindal Brothers.

The information collected through above methods has been tabulated, analysed and
interpreted. Finally an overall assessment of the contribution of top management,
supervisory staff has been made towards improving the effectiveness of the
organization.

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 TYPES OF RESEARCH
Research methodology is a way to systematic solve the Research Problem. It is a
procedure, which is followed step by step to solve a particular research problem.

There are basically four types of researches:

1 EXPLORATIVE RESEARCH
2 DESCRIPTIVE RESEARCH
3 DIAGNOSTIC RESEARCH
4 HYPOTHESIS TESTING RESEARCH

Explorative Research:
To gain familiarity with phenomenon or to achieve an insight into it.

Descriptive Research:
To poetry accurately the characteristics of the particular individual situation or a
group.

Diagnostic Research:
To determine the frequency with which something occurs or with which it is
associated with something else.

Hypothesis Testing Research:

To test a hypothesis of casual relationship between variables.

The present project is Descriptive cum Explorative in nature. It is done to poetry

accurately the characteristics of a particular individual situation or a group. The major
purpose of the descriptive research is the description of the state of the affairs as it
exits at resent. The main characteristics of this method are that the researcher has no
control over the variables; he can only report what has happened or what is
happening.

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 LITERATURE REVIEW

Organizations exist to achieve goals. Goals are only met when individual employees
efforts matches with policy of the organization and thus bringing out success and
effectiveness. The assessment of how successful employees have been at meeting
their individual goals therefore becomes a critical part of HRM and here comes
Performance Appraisal System.

Performance appraisal is an important component of the information and control

system. In today’s flexible organizations, performance evaluation provides an
important way for managers to clarify performance goals and standards and to
enhance future individual performance. Thus the purpose of performance appraisal is
to improve the organization’s performance through the enhanced performance of
individuals.

The performance appraisal system:

• Is an organizational necessity

• Is based on well defined objective criteria

• Is based on careful job analysis

• Uses only job related criteria

• Is supported by adequate studies

• Is applied by trained qualified raters

• Is applied objectively throughout the organization

• Can be shown non discriminatory as defined by law.

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 OBJECTIVES OF PERFORMANCE APPRAISAL

There are mainly two purposes for which performance appraisal is used by an
organization:

(1) To improve the work performance of employees by helping them realize and use
their full potential in carrying out the firm’s missions; and

(2) To provide information to employees for use in making work related decisions,

More specifically, appraisals serve the following purposes.

1) Appraisals generate information to support administrative decisions. Promotions

transfers and reassignments, demotions and termination’s are action based at least
in part on performance.

2) Appraisals provide feedback to employees and thereby serve as vehicle for

personal or career development because feedback provides:

• Reassurance that they are contributing and doing the right thing

• Awareness of the impact on the desired results

• A measure of the adequacy of performance (quality, quantity, speed etc.)

• Recognition of the importance and value of their performance.

3) Once the development needs of employees are identified appraisals can help
establish objectives for training programmes. Thus evaluations provide a basis for
changing performance plans, including objectives and standards of behaviors as
business plans and conditions change.

4) As a result of proper specifications of performance levels, appraisals can help

diagnose organizational problems. They do so by identifying training needs and
the knowledge, abilities, and other characteristics to consider in hiring, and they
also provide a basis for distinguishing between, effective and ineffective
performers.

5) Appraisals are used as criteria in test evaluations.

The rationale for differential treatment of employees needs to be consistent with

company’s values, philosophy and strategy. It also needs to be balanced with the
desire for collaboration, rather than competition and conflict, sought in TQM.

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 NEW OBJECTIVES OF PERFORMANCE APPRAISAL

Performance appraisal system can serve the following purposes if designed properly

 Help each employee to understand more and more about his role and become clear
about his functions.

 Helps each employee to understand his own strengths and weaknesses with
respect to his role and functions of the company.

 Helps identifying the developmental needs of employees.

 Helps increase mutuality between employee and his superiors.

 Provides an opportunity to the employees for self reflection and individual goal
setting

 Helps in preparing employees for performing at high levels by continuously

enforcing the required qualities.

 Creates a healthy environment in the organization.

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 EVOLUTION OF PERFORMANCE APPRAISALS IN INDIA

First Phase of Performance appraisals began in the early sixties were prepared in the
form of Annual Confidential Reports (ACR0, also known as Employee Service
Records (ESR) in some organizations. Negative remarks in the ACT or ESR were
considered damaging for career growth. It was thus important to keep the boss in
good humor so that the ACR or ESR did not get spoiled. The ESR was largely trait
based and the traits used were sincerity, punctuality, dynamism, job-knowledge,
loyalty, initiative, leadership etc. The ACR and it was this strict confidentiality that
was supposed to serve as the motivating force for them. This may be considered as
Phase 1 of the performance appraisal systems in India.

In the Second Phase that spanned late sixties and early seventies, the main change
was in communication of adverse remarks to the employees. It was felt that unless
this system of communicating to the employees in writing any quality or trait on
which they got a rating of 33 per cent or less. Even though the communication was
sent to the employer by the personnel department or the establishment section in a
routine manner, the employees took it very seriously because it required office played
a key role in moderating the assessment, and he normally had all the powers to
overrule the ratings of the reporting officer of the employee.

In the Third Phase of appraisals, the employee was given a scope to state his own
accomplishments in the confidential report form. The term annual confidential report
was replaced during this period by Performance Appraisal. The appraisal process
began at the end of the year with a statement by the appraise about his significant
accomplishments during that year. Some organizations later turned this “opportunity
given to the appraisee to express his significant achievements as self-appraisal”.
However, this term was a misnomer as there was no scope for the appraisee to
appraise himself. A few organizations subsequently developed this part of the
appraisal by adding other questions about difficulties faced, plans for improvement
next year etc. Everything else remained the same. The formats became a little more
elaborate and in few cases, the appraisal included the details of the actual work done,
largest achieved etc. The confidentiality, however, was maintained as before. In most
cases, there was no communication to the appraisee about the performance
assessment. In a few of them, a column of training needs was introduced. The
appraisals continued to be control oriented and not developmental.

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It was really in the he Fourth Phase that the system of performance appraisals
underwent a quantum leap. This phase began in the mid-seventies and in a way was
initiated in India by Larsen & Turbo Limited, followed by the State Bank of India ,
Bharat Earth Movers and few other organizations. This phase witnessed a shift from
control to development, appraisal to analysis, strong links to training, confidentiality
to openness and traits to quantifiable tasks and targets.

The movement towards open and development oriented appraisal systems was
initiated by L&T when it adopted a system making appraisal more performance
based, participative (dialogic and interactive), open and developmental. It required the
employee and his reporting officer to plan the performance (the term key performance
areas or KPAs was introduced) or the appraisee in the beginning of the year, review it
after six months with the boss, analyze the factors affecting performance, discuss
developmental needs, have performance counseling and share the ratings with the
appraisee. The system required active participation of the appraisee and was intended
to be a performance planning, performance reviewing. And performance developing
system. In the late seventies and early eighties, most organizations wee fascinated by
this open and development oriented system. Some of them even started new HRD
departments by appointing HRD managers having the skills to design, monitor and
implement the system. While a few organizations switched over to this system, it took
about 10 years of experience to fully understand its intricacies and dynamics. The
change process was slow largely because the employees were not used to the
openness introduced by the new system, the HRD managers did not have enough skill
base to monitor it, and the top management lacked patience and perspective about its
potential advantages. Several organizations could not get out of the mindset created
by earlier confidential report system. They continued to use it for promotions, which
were considered as the most important indicators of development. It is only by the
mid eighties that organizations started setting down and feeling comfortable with the
open appraisal systems.

Phase Fifth has started only in last three years with organizations showing some
maturity and growth in terms of their understanding of appraisals. This phase is
characterized by a movement towards development in spirit and form. This is
symbolized by the substitution of the term performance appraisal by performance
review system, performance development system, performance analysis and

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development to rewards and from comparative assessment to assessment in relation to
plans. There is a movement from rewards and controls to culture building and
development and the new phase also indicates a shift towards appraisal by multiple
sources rather than by only the reporting officer.

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PERFORMANCE APPRAISAL - PROCESS MAP

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 TRENDS IN PERFORMANCE APPRAISAL SYSTEM
Performance appraisal in its traditional from known as ACR-Annual Confidential
Report is often misused than used. Performance appraisal has now been recognized as
a HRD function. In the last decade many organizations have reviewed and changed
their managerial appraisal systems.

1) There is a trend away from the composite appraisals with multiple objectives
(e.g. performance planning, development rewards and promotions)to separate
systems for different systems for different clusters of objectives.
2) There is a move away from isolated appraisal system to the business linked one .
3) There is shift away from closed confidential type to open dialogue and
discussions based system.
4) There is a movement quantitative (pseudo objective) to qualitative (interactive,
improvement and process oriented) system.
5) There is a movement away from boss assessed feedback to 360-degrees
feedback involving customers, peers, team members, subordinates etc. in
addition to supervisors.
6) There is also a trend away from elaborate systems to simple ones.
7) There is a shift from standard systems to flexible and group specific ones.
8) There is a movement from result oriented systems to process oriented system.
9) There is a movement from the assessment of individual performance to the
development of team performance.
10) There is also a movement from complacency to experimentation through
continuous research change.
Performance appraisal refers to the assessment of an employee’s actual performance,

behavior on jobs, and his or her potential for future performance. Appraisal has

several objectives but the main purposes are to assess training needs, to effect

promotions, and to give pay increases.

Appraisal of performance proceeds in a set pattern. The steps involved are –defining

appraisal objectives, establishing job expectations, designing the appraisal

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programme, conducting performance interview, and using appraisal data for different

HR activities.

Two important contemporary techniques of performance appraisal include 360º

appraisal and goal setting approach to appraisal also known as ‘Managing by

Objectives’.

Currently most of the companies are using one of the following Performance

Appraisal Methods:

1). 360 Degree Appraisal Method

2). Rating Scale Method

3). Management by Objective Method

Under the 360 Degree appraisal method the employee is rated from all angles i.e., by

the superiors, subordinates, peers, suppliers, distributors, customers and clients. Under

the Management by Objective method the employee goals are set mutually by the

employee's and the management. And the employees are rated based on the

accomplishment of these goals. Under the Rating Scale method each employee trait or

characteristic is rated on a scale that usually has several points ranging from "poor" to

"excellent" (or some similar arrangement).The traits assessed on these scales include

employee attributes such as work quality, cooperation, initiative, punctuality and

technical competence, etc. The selected traits should be in some way relevant to the

appraisee's job.

360º APPRAISAL AND FEEDBACK

The 360 degree appraisal involves rating of an employee or manager by everyone

above, alongside and below him. Corporate like General Electric India (GE), Reliance

Industries Ltd. (RIL), Crompton Greaves, Godrej Soaps, Wipro, Infosys, Thermax

and Thomas Cook are all using this tool to find out truths about their managers.

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Although deployed mostly as a fact-finding technique, 360 º appraisals are also used

to design promotion and reward system in the organization.

Concept of 360º Appraisal

According to Milliman and others, “360-degree appraisal is the process of

systematically gathering data on a person’s skills, abilities and behaviors from a

variety of sources –the manager, peers, subordinates and even customers and clients”.

Thus, appraisal of an employee is done by his superior, his peers, his subordinates and

clients or outsiders with whom he interacts in the course of his job performance. In

360-degree appraisal, besides appraising the performance of the assesses, his other

attributes such as talents, behavior, values, and technical capabilities are also

appraised.

Besides the employee himself, superior, subordinates and peers play an important role

in the appraisal. Structured questionnaires are used to collect responses about the

employee from his superiors, peers and subordinates. Several parameters relating to

performance and behavior are used in the questionnaires. Each manager is assessed by

a minimum of fifteen colleagues, at least two of them being his bosses, four of them

peer, and six of them subordinates. Even the important customers or clients of the

firm may also be requested to give their assessment of the concerned employee. The

responses are presented collectively to the assesses in the form of charts and graphs.

Comments and interpretations are presented later. Counseling sessions are arranged

with the employee to remove the weaknesses identified in the 360 degree assessment.

Merits of 360º Appraisal

The merits of 360º appraisal are as under:

(i) The 360 degree appraisal leads to greater self-awareness of those appraised. It

reveals strengths and weaknesses in their working styles.

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(ii) The gap between self assessment and the views of one’s colleagues of peer

group in reduced.

(iii) It facilitates empowerment of subordinates who get a say in the appraisal of

their bosses.

(iv) Inflexible managers are forced to initiate self-change.

(v) Facts about organizational culture and ambience are brought to light by the

multiple appraisals.

Limitations of 360º Appraisal

The system of 360º appraisal suffers from the following limitations:

(i) The 360 degree appraisal system ignores performance in terms of goals.

(ii) The candidate being appraised may not accept negative feedback from the

subordinates and peers. He might feel humiliated.

(iii) Responses from colleagues often tend to be biased.

(iv) Linking rewards to findings under 360 degree appraisal can prove to be unfair.

(v) The subordinates and peers might not be fully competent in appraisal.

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Guidelines for Better Use of 360º Appraisal

The use of multisource appraisal can be effective if the following guidelines are

followed:

(i) Involve people. Ask them who should serve as raters, and give them an

opportunity to review and interpret the results. This will strengthen their

commitment to both the overall process and the specific decisions.

(ii) Ensure that relevant data are being collected. Focus on behaviors and

outcomes that raters are capable of observing and are competent to evaluate.

(iii) Ensure that no single rater can dramatically affect the outcome. Use a

large enough sample or eliminate the highest and lowest scores to ensure that

no one rater can skew the data.

(iv)Train raters in what and how to observe. The better people understand

what they look for and how to record”critical incidents” (specific things the

person said and did that can be used as examples to support their ratings, and

better the quality of the information that will be collected.

(v) Ask raters to support their evaluations. Whenever possible, raters should

discuss their observations and evaluations with other raters. These discussions

should trigger thoughts and combat selective memory. Raters should also be

required to provide a rationale for their rating to other raters. This would

prevent people from using the process to act on personal grudges.

(vi)Move slowly and start small. Any organization considering using 360 º

feedbacks in the appraisal process should begin by using it for development

purpose only and then gradually to make it a part of appraisal system. Even

then, the focus should be on the goal-setting portion of the appraisal. People

need to get comfortable with the idea of multisource feedback as a

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 development tool before they can accept it as part of the formal performance

management process.

A lot of organizations seem to be hurrying to integrate 360º feedback into the

human resource management system. Multisource feedback really does have the

potential to enhance human resource management system. However, 360º feedback

won’t fix a system that does not work.

(vii) Develop a culture that supports open feedback. Not surprisingly, 360º

feedback works best in companies where the environment is participatory

rather than authoritarian, where giving and receiving feedback are the norm

and are seen as valuable sources of information. If the current system (where

only the supervisor does the appraisal) is not working due to lack of straight

talk and hesitancy to give direct feedback, it is essential to introduce openness

in the organization.

(viii) Clear and agreed on performance measures and behaviors. When 360º

feedback is used for development only, the organization may be able to settle

the list of behaviors and skills that have reasonable face validity and general

support: “coaching” or “team building”, for instance. However, when the

feedback is being used to determine performance ratings, the result and

behavior for which people are held accountable must be clear, unambiguous

and specific.

(ix)The users must support the system and be willing to invest the time

required to make it work. The introduction of 360º feedback makes an already

time-intensive appraisal process even more demanding. It means more data to

collect and more information to process for the additional feedback.

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 (x) Sound feedback process. While the way the data are collected and

presented are always important, two aspects of sound 360º feedback procedure

are particularly relevant when the data are used for appraisal purpose: the

validity and reliability of the practices for which people will be measured and

the confidentiality of the raters.

Elements of 360º Appraisal Program

The elements of 360º appraisal program are as follows:

(i) Appraisal by Superior/ Boss. This is the most important element of the 360

degree appraisal. Here the focus is to provide constructive feedback on

employee’s performance and his development needs. It is the responsibility of

the superior to ensure that employee sets goals not only in the area of business

performance but also in the areas that are vital to the organization. These are

called corporate thrust areas and may include relationship management, safety

and quality development. If the working style of the employee is a concern

area and needs improvement for enhancing effectiveness then goal may be set

for “style of functioning” such as, from short-term to long-term orientation.

It is expected of the superior to put career aspirations of the employee in proper

perspective. Firstly, superior must communicate to the employee in a clear way

what the organization plans for the employee. Secondly, if the employee has

unrealistic aspirations, then also it is superior’s responsibility to share with the

employee the realistic picture given his/ her strengths, development areas,

experience, qualifications, and the organization’s ability to provide growth. This is

how the superior’s appraisal has a very significant role to play.

(ii) Appraisal by the Peer Group. The peers play an important role in the life

of an employee in the organization. The can also provide a deep insight into

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 the personality make up, attitude and style of working of the employee. For

better results, it is essential to select the right peers for the purpose of

appraisal. They must include peers both from within the department as well as

from the other departments, which are directly connected with the working of

employee’s department. The concept of internal customers comes handy here.

Three to five internal customers should normally be chosen for peer appraisal.

In order to achieve the purpose of 360º appraisal, the peer group appraisal must

strive to get the feedback on (a) employee’s working style, (b) sensitivity towards

others, (c) spirit of co-operation and collaboration, and (d) ability to work as a team

member.

(iii) Appraisal by the Subordinates. Another distinctive feature of 360º

appraisal is the role of subordinates in appraisal. It signifies two things.

Firstly, it is a clear expression from the organization that it encourages

openness and that feedback is a two-way process. Secondly, it is a systemic

recognition of the fact that an employee’s subordinates do play a vital role in

his appraisal. Thus, the purpose of subordinate’s appraisal is to get first hand

assessment of how the subordinates perceive their superior to be in terms of:

(a) delegation of authority, (b) guiding and training of subordinate, (c)

motivation of subordinates, (d) team building, etc.

Upward appraisal provides an opportunity to the subordinates to give feedback to

their superior on the kind of things they would like him/ her to continue doing

(status quo), things they would like him/ her to stop doing (areas for corrective

action), things they would like him/ her to start doing (areas for new initiatives).

(iv)Self Appraisal. Any program of 360º appraisal would not be complete

without self appraisal by the employee whose performance is being appraised.

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Self appraisal facilitates the employee to identify his/ her strengths and

weaknesses and provides an opportunity to assess the performance. In a well

established system, employees use the self appraisal very effectively and

organizations also find that employees often are their own strongest critics and

display very high degree of objectivity. Self appraisal also provides an

opportunity to the employee to express his career moves for the future.

However, this is only for gathering information and that under the given

organizational constraints, it may not be possible to provide the career

progression desired by the employee. Nevertheless, it is in the organization’s

interest to at least know on a first hand basis the aspirations of its employees.

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 FINDINGS AND ANALYSIS

Organization Structure and Design

1- Jindal Brothers is a young, dynamic organization and is going strong on the

stock market.

2- The company is well aware of the dynamic environment of software, it is

operating and in order to keep it with the pace of the environment it believes

in constant up gradation of courses. Organization structure and design of the

company is such that it supports this change.

3- Jindal Brothers has a matrix kind of a structure wherein it takes the form of

combination of structures. Matrix structures are adopted became there is more

than one factor around which the structure can be built.

4- This matrix structure at Jindal Brothers improves the quality of decision-

making where interest conflicts arise and direct contacts replaces bureaucracy

5- . This increases the motivation of the managers and development of wider

involvement in strategies. Although at times the company faces high risk of

dilution of priorities became e people do not know who is responsible for

what.

6- An organization is a network of authority, responsibility and relationships.

Different organization structure consists of different type of relationships.

Line Organization

28
It is the traditional type of organization. It refers to a direct chain of command from

top to bottom. In the line organization the lines of direction are straight and vertical.

Authority and responsibility flow vertically in an unbroken straight line from one

level to another. Every superior has complete command over his subordinate and

every subordinate has to report his work to only the senior or to the level above his

own level.

Staff Organization

Staff may be of three types:

Personal Staff:

It consists of personal assistants attached to individual line executives. Personal staff

is employed to carry out those responsibilities of an executive, which he cannot or

does not want to delegate to others.

Specialized Staff:

It consists of specialists in different functional areas e.g. personnel, accounting, legal

and public relations etc. A specialized staff department serves as a fountainhead of

expertise for the entire concern.

General Staff:

It includes a group of experts attached to the central office and it provides general

advice mostly to the top management.

Complaint Handling

As part of the process for capturing customer complaints and acting on them, Jindal

Brothers has procedures that ensure that each customer complaint is captured,

recorded and reported as part of a formal review system. The process includes related

activities such as escalation of a problem, tracking each complaint to closure, and

29
creating new procedures (or modifying existing ones) to prevent similar problems

from repeating in the future.

Employee Excellence At Jindal Brothers they believe that they can build a world

class structures. Their vision document, which drives each employee as well as the

organization itself, reflects Jindal Brother's commitment towards customers and

employees. Starting from the recruitment process and culminating in annual reviews,

Jindal Brothers has quality processes for tracking and maintaining quality standards.

Recruitment

For recruitment, Jindal Brothers administers various tests to the applicant. These

include aptitude tests, IQ tests, management tests, and personality tests. Each of the

tests captures different information about the individual so that Jindal Brothers can

ensure that the person is appropriate for the job and will fit into the company culture.

Goal Setting Before starting on the job, employees discuss their role and

responsibilities with their supervisors. This results in the setting of goals and

objectives for each individual for the coming year. This process clarifies the

expectations from each individual during the year. Each employee is expected to

monitor his/her goals by filling in a focus report every month, which is then discussed

with the supervisor.

Training

Jindal Brothers recognizes the fact that the skills of employees need to be upgraded

constantly. Jindal Brothers trains each and every employee continually through the

year. In fact, Jindal Brothers has one of the highest training days per employee in the

world: each Jindal Brothers employee receives over 11 days of training each year.

Jindal Brothers has an employee training division which conducts in-home e,

residential training programs exclusively for Jindal Brothers employees.

30
 PERFORMANCE APPRAISAL AT JINDAL BROTHERS

While on the job, performance reviews of every employee are done every quarter. The

reviews are done with a view to helping the individual excel at his/her workplace. In

case there are any training requirements, these are noted and acted upon in the coming

quarter. Also, the goals and objectives for the employee are re-visited for

The performance appraisal mechanism is carried out at Jindal Brothers for

promotional purposes

These are done so as to motivate the employee and improve his performance level.

The method is as follows:

a) Establishment of performance standards with the employees

b) The goals are set mutually as per measurable standards.

31
c) The actual performance is hence measured.

d) After measuring of the actual performance, the same is compared with the

standards set

e) The appraisal is then discussed with the employees.

f) And finally, if need arises corrective action is initiated. For this purpose the

corrective action is actually identified through brainstorming exercises

initiated by the departmental heads at all the Jindal Brothers. It is then

measured as a tool to evaluate the past performances of the employees.

32
Some of the methods used at Jindal Brothers are:

1. Key Performance Index

2. 360 Degree Feedback

3. Paired Comparisons

4. Behaviorally Anchored Rating Scale

1. KPI-Key Performance Index

It is based on the performance level of the employee generally classified on the basis

of:

• Targets achieved

• Ratings through students’ feedback forms

• Punctuality and regularity

• Day to day performance

This is given after every module at the centers.

Thus we can observe that the appraisal system is not a biased one but based on

performance and productivity basis. All the respective heads of the employee together

with the senior persons at the center brainstorm and then give the promotion.

2. 360 Degree Feedback

This feedback system involves the participation of:

• Coworkers – 40%

• Subordinates - 20%

• Superior - 40%

33
Thus the feedback given by these members at Jindal Brothers is considered under a

holistic view and then the employee is given a performance appraisal. This evaluation

method involves 40% feedback from the coworkers which says that the employee

should not only maintain good rapport with the senior or junior but majorly with the

coworkers also.

3. Paired Comparisons

The evaluator compares all possible pairs of subordinates on their overall ability to do

the job. Due to the subjectivity of evaluating overall performance some managers me

e a number of different job related dimensions when comparing.

4. Behaviorally Anchored Rating Scale (BARS)

It is a sophisticated method of evaluating the employee based on the employee

behavior. It is a numerical scale that is anchored by the seniors of the organization at

various centers. This is highly confidential and the information is sent in sealed

envelopes and opened only at the time of the final evaluation. There is no further

discussion regarding this scaling, thus it is not given enough weightage.

34
 SURVEY FINDINGS

In this section, basic data for a group of 100 employees from lower, middle, senior

and top managers is presented on various attributes of performance appraisal.

Frequency and frequency percent scores were computed for each of the groups of the

entire selected variable.

1. Finding through the Questionnaire

Through the questionnaire it was found that promotions were and known to most of

the top and senior management while middle and lower management were a bit not

clear about it. This could be attributed to the fact that senior and top management

were more involved in decision making and policy formulation than are the middle

and lower management.

Same reason could be attributed to the fact that code 1 managers were absolutely clear

of what was expected out of them every year, whereas 50% senior management ware

clear or partly clear about the same and the about 20% of middle management were

not clear about it and still further, the 71% of lower management was not aware of

what was expected out of them every year.

85% of code 4 employees said that they could express their reason of failure. The

responses of 50% of Middle Managers were bit favorable whereas 100% senior

management also thought that they did not get the opportunity to express their cause

of failure. The 60% of top management were portly able to express their cause of

failure. This may be because the appraisal system is more of less performance based

and human factor is by and large overlook. Whereas, at the lower levels of the

organization, performance can be quantified, and the managers are made accountable

at the higher echelons the tasks are too complex and therefore cannot be assessed on

the basis of quantified performance and therefore the top and senior management

35
believed that the promotions are also for motivation whereas the attitude wanes as the

level of hierarchy goes up. This is probably because of the appraisal of performance

based on the quantity or results. If the employee’s output is good of better they get

promotions and also get motivation to achieve better performance. At the higher

levels the results are more of subjective nature therefore promotions does not accrue

on the basis of quantified results only.

Most of the managers feel that the mechanism for potential appraisal is not adequate.

This may be, because the training programmers are also not developed.

As far as feedback is from superiors is concerned, most of the top and senior

management were of the view that they constantly receive feedback. This is because,

they take decisions crucial to the existence of the organization and therefore are

closely watched and monitored as compared to the employees in the lower & middle

levels.

Again the top management felt that they with their superior decide about their job but

100% of senior management did not feel the same at all. This is because again due to

power centeredness and power difference in the organization, being a tall organization

the superior are not accessible to their subordinate.

60% of lower management thought that their creativity was definitely not adequately

recognized whereas the top management believed that the organization encouraged

creativity. This highlights the gap of communication in the organization and

differences in the perception of culture in the organization by different grades of

employee. 70% of lower management thought that the system was not free from

biases and same is felt by most of the middle, senior and top management. This shows

that human instincts and behaviors influence the performance appraisal system.

36
60% of lower management was not clear about the goals and objectives of the

organization. Most of top management thought that they were clear or very clear,

about the organization goals. This is because, the power distance is extent and

communication system of the organization is not very effective. This also shows that

transparency is lacking in the system.

70% of lower managers thought that the performance appraisal system did not

identify their training needs. 80% of senior managers also thought the same. But the

view of top management differed in the sense that they felt that the system helped

them surface their training needs. The reason being that the training programmes are

not fully developed and are not constantly evaluated in the organization. The top

management felt that there was a scope of super review. The senior management also

felt a bit the same but lower and middle management keep attending meetings and had

already developed rapport with their superiors and so could easily talk out their

appraisal results whereas this is not so for lower and middle management. They are

not able to approach their senior easily and are therefore could not appeal for super-

reviews.

60% of lower managers said that they do not get opportunity for self review and

reflection. This is because performance appraisal is lacking human touch to it. The

appraisals are entirely based on performances, overlooking the cause of successes and

failures. The appraisal system thus does not meet individual’s developmental needs

and also does not contribute to employee’s job satisfaction and moral development.

37
2. Findings from Observation and Discussions

The organization believed that self appraisal is the best for managers and above.

To improve interpersonal communication and behavior assessment by peers and

subordinates is essential.

The performance of the employees is not regularly monitor and the required feedback

is provided to the subordinates from time to time. The appraisals are conducted at

fixed intervals. The organization believes in using appraisal for rewarding and

increments.

There was a neither formal nor informal discussion on job specification and tasks to

be accomplished for various departments.

There was no formal performance appraisal taking place till now in the organization.

There fore, there were no written records of such activity in the personal files of the

employees. However people were being appraised informally by the superiors and got

promoted or incremented accordingly.

It would not be wrong to say that interpersonal relations and personal biases (i.e.

liking and disliking influence the appraisals in the organization).

The management is in the process of restructuring and developing such policy in the

organization

38
.

ANALYSIS & INTERPRETATION

This chapter deals in tabular presentation results and their analysis for the purpose of

easy reading the section has been divided into two parts.

• Tabular form of Response

• Inference

• Remarks on each question

39
1. In your company, the key competencies required for each job are already
identified?

Response Category No. of responses Percentage

Very true 0 0
True 4 8
Partly true 9 18

Not true 37 74

80
70
60
50 Very true
40
True
30
20 Partly true
10 Not true
0
No. of
responses

Inference: Most of the respondents (74%) found the above statement to be ‘Not
True”. This was followed by 18% of the respondents feeling that this statement was
‘Partly True’ for their organization. Only 8% of the people found it to be ‘True’.

Remarks: Although the appraise does not have a clear understanding of what is
expected of him at the beginning of the year (Inference I), both he and the appraiser
know what his job is all about. This also shows that although an employee knows
what his current to do to be rated higher by the reporting officer. The responsiveness
in category of Partly True and Not True may be due to the face that job content in
Jindal Brothers is flexible and not well defined and some people find it difficult to
define their jobs. However, most of the people have a general idea of the scope of
their jobs.

40
2. There are mechanisms that help employees develop their potential for the next
round of job?

Response Category No. of responses Percentage

Very true 0 0
True 5 10
Partly true 25 50

Not true 20 40

50
40

30 Very true

20 True
Partly true
10
Not true
0
No. of
responses

Inference: Quite a large number of respondents (40%) shared the view that the
appraisal system did not give a clear understanding of all appraisals, job to both
appraiser and appraise by saying that it was ‘Not True’. Only 50% and 10% of the
respondents felt that the statement was ‘True’ and ‘Partly True’ respectively.

Remarks: Although the appraise does not have a clear understanding of what is
expected of him at the beginning of the year (Inference I), both appraisee and the
appraiser know what his job is all about. This also shows that although an employee
knows what his current to do to be rated higher by the reporting officer. The
responsiveness in category of Partly True and Not True may be due to the face that
job content in Jindal Brothers is flexible and not well defined and most people find it
difficult to define their jobs. However, most of the people have a vague idea of the
scope of their jobs.

41
3. Employees regularly receive feedback about their potential for higher level
jobs?

Response Category No. of responses Percentage

Very true 0 0
True 8 16
Partly true 7 14
Not true 35 70

70
60
50
40 Very true
30 True
20 Partly true
10 Not true
0
No. of
responses

Inference: 70% of the respondents agreed that the appraisal system did not helped
them to know their potential to perform at higher levels. Plan their performance well
by saying that it was ‘Not True’. Only 16% and 14% people felt that this statement
was ‘True’ and ‘Partly True’.

Remarks: The above inference shows that the PA system in Jindal Brothers does not
give feedback about ‘planning for performance’ to its employees. It helps anticipating
work needs in order to arrange work in logical order. It also helps in devising efficient
methods to attain pre-determined plans. Again due to flexibility in job content, some
people may have found problems in planning their performance systematically.

42
4. Job rotation is practiced widely to help people develop their potential in new
areas?

Response Category No. of responses Percentage

Very true 7 14
True 18 36
Partly true 25 50
Not true 0 0

50
40

30 Very true

20 True
Partly true
10
Not true
0
No. of
responses

Inference: About 50% of the respondents felt that the above statement was ‘Partly
True’. It was followed by 36% people feeling that it was ‘True’ with 14% believing
that it was ‘Very True’.

Remarks: Job rotation is the most economical way of providing training to the
employees. It facilitates both organization and individual development. Job rotation
gives an individual hand on experience for carrying out various different functional
activities. The performance appraisal system should include this process in the
training need identification performance.

43
5. The appraisal system provides an opportunity for self-review and reflection?

Response Category No. of Responses Percentage

Very true 0 0
True 0 0
Partly true 13 26

Not true 37 74

80
70
60
50 Very true
40
True
30
20 Partly true
10 Not true
0
No. of
Responses

Inference : There is a general agreement on then fact that the PA system in

Jindal Brothers does provide ample opportunity for self-review
and reflection. 74% of the people felt that it was ‘Partly True’ with
26% agreeing.

Remarks : The presence of self-appraisal procedure in the PA appraisal

system is an important reason for the above inference. The self
appraisal includes questions on major achievements, constraints in
performance, type of training required, tasks/activities undertaken
successfully during the year, problems faced etc. It also includes
suggestions on making the job interesting and challenging and
plans to improve effectiveness. Due to this fact, employees may
have felt that they were participating actively in their own
appraisal by self -review and reflection on various issues.

44
6. Promotions are based strictly on need rather than to reward individuals?

Response Category No. of Responses Percentage

Very true 0 0
True 4 8
Partly true 25 50
21 42
Not true

50
40

30 Very true

20 True
Partly true
10
Not true
0
No. of
Responses

Inference : 50% of the respondents believe that the above statement is

‘Partly True’ This was closely followed by 42% of the
respondents rating it as ‘Not True’ and 8% of the respondents
feeling that it was ‘True’.

Remarks : The performance appraisal is completely need based the

organization recognizes and promotes high achievers only if
there are vacancies available in the organization. This has a
negative impact on people who are not rewarded and promoted
duly for their good performance. There should be a system of
rewarding employees either in monetary terms or in terms of
recognition.

45
7. The appraisal system gives each appraisee an idea of what is expected of him
next year?

Response Category No. of Responses Percentage

Very true 0 0
True 10 20
Partly true 26 52
14 28
Not true

60
50
40
Very true
30
True
20
Partly true
10
Not true
0
No. of
Responses

Inference : 52% of the respondents felt that the above statement was ‘Partly
True’. This was followed by 28% and 20% of the respondents
feeling that it was ‘Not True’ and ‘True’ respectively.

Remarks : Each employee needs to have an idea as to what accountabilities

will he have if his appraisal is given a good remark for working at
higher levels. The appraisee should know his potential, which
will go a long way in his higher level jobs.

46
8. It is designed to aid the appraisee and appraiser jointly understand the
formers job?

Response Category No. of Responses Percentage

Very true 0 0
True 14 28
Partly true 22 44
14 28
Not true

50
40

30 Very true

20 True
Partly true
10
Not true
0
No. of
Responses

Inference : There was a mixed response to the given statement. 44% of the
responses consisted of “Partly True’ ratings. 28% respondents
believed that this was ‘Not True’ whereas 28% believed that
this was ‘True’.

Remarks : The above inference implies that Jindal Brother’s PA system

does not score well in the aspect of transparency in
communicating an employee’s performance through
performance review and discussion. The discussions between
appraisal processes. The interaction on self appraisals is not a
common feature and is only done on certain occasions
(exceptionally good or bad performance etc.) The presence of
44% responses as “True” may be due to good relationship and
open communication shared by some of the appraiser appraise
pairs.

47
9. The performance appraisal provides an opportunity for self review and
reflection?

Response Category No. of Responses Percentage

very true 0 0
true 2 4
partly true 25 50
not true 23 46

50
very true
40

30 true
20
partly true
10

0 not true
No. of
Responses

Inference : Most of the respondents agreed that the appraisal system catered
to their development needs (50% believed that it was “Partly
True”) and it was very closely followed by 46% saying it was
“Not True”. There were 4% cases, which believed that it was
‘True’.

Remarks : Although the inference indicates that the PA system allowed

mutuality, trust and open communication between superior and
subordinates, there may be chances of biases in employees while
rating this statement. The answers may have varied depending
on proximity etc. of the employee with his superior. However
present of 50% ‘completely true’ answers help us in obtaining a
general view on the ability of PA system to allow
communication between superiors and subordinates in Jindal
Brothers. Therefore, it can be assessed that the Performance
Appraisal does provide ample opportunity for open
communication between appraiser and appraise.

48
10. The appraisal procedure allows the appraisee to express his developmental
needs?

Response Category No. of Responses Percentage

very true 0 0
True 8 16
partly true 16 32
not true 26 52

60
50 very true

40
True
30
20
partly true
10
0 not true
No. of
Responses

Inference : The most common response on above statement was an

astounding ‘Not True’ with 52% people agreeing that the PA
system was free of any biases. It was followed by 32% saying
that it was ‘True’ and 16% saying that it was ‘Partly True’.

Remarks : The above inference implies that people are satisfied with the
PA system in Jindal Brothers and believe that it provides scope
for developing their potential. This may be due to the fact that
the self appraised of the appraise invites suggestions on job
enrichment, training needs and steps to be taken to improve
individual’s effectiveness.

49
11. The system has scope to correct the biases of the assessor through a super
review?

Response Category No. of Responses Percentage

very true 0 0
true 2 4
partly true 14 28
not true 34 68

70
60 very true
50
40 true
30
20 partly true
10
0 not true
No. of
Responses

Inference : 68% of the people rated the above statement as ‘Not True’ 28%
believed it was ‘Partly True’ with 4% disagreeing by saying that
it was ‘True’.

Remarks : A performance appraisal system, which is perceived as ‘bias

-free’ by its executives, is an achievement for the organization.
In the PA system the reporting officer appraises a section of
people whereas the reviewing officer appraises the performance
of an entire department. also the reviewing officer is the
immediate superior of reporting officer. Any disagreement
between the assessments of an employee has to be duly
discussed and recorded. Also, any noticeable difference of
opinion between self appraisal and appraisal by reporting officer
has to be accounted for. All the above factors help in correcting
the biases,. if any, of reporting officer.

50
12. The appraisal system provides for a frank discussion between appraiser and
appraisee?

Response Category No. of Responses Percentage

very true 0 0
True 6 12
partly true 0 0
not true 44 88

100
very true
80
60 True
40
partly true
20

0 not true
No. of
Responses

Inference: An astounding 88% rated the above statement as not true with 12%
that it was true.

Remarks Although, most of the people felt that there was mutuality and trust
between appraiser and appraise, it may again depend on the
proximity and relationship shared by an employee and his/her boss.
The ratings may be based, as the employees may have felt that a
negative answer may adversely affect them. The reason behind this
conclusion is that a low score on extent of communication and
discussion between appraisers and appraise and high score on
mutuality and trust give a contradictory view.

51
13. The procedure allows for the communication of CEO‘s goal to the
workforce?

Response Category No. of Responses Percentage

very true 0 0
true 2 4
partly true 10 20
not true 38 76

80
70 very true
60
50
true
40
30
20 partly true
10
0 not true
No. of
Responses

Inference : The typical response in this case was ‘Not True’, by 76% of the
respondents. 20% rated the above statement as ‘Partly True’ and
4% as ‘True’.

Remarks : Even if half of the respondents gave a mid-way answer, presence

of 44% ‘Slightly True’ answers give a negative picture of the
above statement. This implies that the business goals are not well
integrated with individual goals. There is no direct linkage
between the management plans and evaluation criteria. This may
be due to the fact that either the business goals are not quantified
enough or the management is not quick enough to communicate
its plans to the staff below.

52
14. The appraisal system brings out the training needs of the employees.

Response Category No. of Responses Percentage

very true 0 0
True 3 6
partly true 22 44
not true 25 50

50
very true
40
30 True
20
partly true
10

0 not true
No. of
Responses

Inference : 50% of the respondents believed the above statement to be ‘Not

True’ closely followed by 44% people believing it to be ‘Partly
True’. Only 6% believed it to be ‘True’.

Remarks : A few people get the training related to their competencies

skills that needs to be enhanced for successful completion of
their work. most of the people do not get adequate training
according to changes in their job description i.e. responsibilities
and KRAS.

53
15. The performance appraisal system clarifies the career prospects, aspirations
and intentions?

Response Category No. of Responses Percentage

very true 0 0
true 5 10
partly true 40 80
not true 40 80

80
70 very true
60
50
true
40
30
20 partly true
10
0 not true
No. of
Responses

Inference : The typical response (80%) for the above statement was ‘Not
True’ 10% employees believed it to be ‘Partly True’ with an
equal 10% employees believing if to be ‘Not True’.

Remarks : The general picture drawn from the above inference is that all
the employees are not clear as to what the PA system is all
about and what is the reason behind its existence. This shows
that PA system has acquired an important status in Jindal
Brothers with all employees acknowledging its presence and
essence.

54
16. The appraisal system provides a rational basis for salary recommendations?

Response Category No. of Responses Percentage

very true 0 0
True 8 16
partly true 14 28
not true 28 56

60
50 very true
40
True
30
20
partly true
10
0 not true
No. of
Responses

Inference : 56% of the respondents felt that the above statement was ‘Not
True’. 28% responses included ‘Partly True’ ratings whereas
16% responses included ‘True’ ratings.

Remarks : The employees do not want a fixed increment for their great
performance. The company should make recommendations
related to salary on the basis of regular performance feedback
about every employee since the frequency of performance
measurement varies from department to department, it is
difficult to carry out this work smoothly.

55
17. The company relates reward to your performance?

Response Category No. of Responses Percentage

very true 0 0
True 10 20
partly true 4 5
Not true 36 72

80
70 very true
60
50
true
40
30
20 partly true
10
0 not true
No. of
Responses

Inference :` Most of the respondents (72%) felt that the above statement was
‘Not True’. 20% believed it to be ‘True’ whereas a mere 8% felt
that it was ‘partly True’.

Remarks : The company uses the reward system as a motivating force for
enhancing the performance of its employees. Rewards should be
promptly given to high achievers in terms of increment,
promotions, increased job responsibilities etc. for their
accomplishment.

56
18. What kind of an appraisal system will bring out the best of an employee?

Response Category No. of Responses Percentage

appraisal by all superiors 10 20
appraisal by immediate 5 10
superior

appraisal by reference team 15 30

appraisal by reference team 20 40
and self.

appraisal by
40 all superiors
35
30
25
20 appraisal by
15 im m ediate
10 superior
5
0 appraisal by
No. of reference
Responses team

appraisal by
reference
team and self.

Remarks : This shows that the relationship between appraiser and

appraise, in Jindal Brothers, with respect to planning the
performance is quite good. The subordinate in planning his
performance. The appraiser helps the appraise in testing the
soundness of his goals as well as of his plans for achieving
them. This implies that there is active participation of both
appraiser and appraise in performance planning. The reason
behind ‘Not True’ answer may be due to the fact that many
jobs in Jindal Brothers are not well defined and therefore an
elaborate planning on them is not done.

57
 CONCLUSIONS & RECOMMENDATIONS

1. This company proves that a major amount of work towards developing an

effective and efficient performance appraisal system has not been
accomplished to the fullest.

2. It seems that the organization is genuinely interested in improving the

efficiency and utility of performance appraisal system to succeed in today’s
dynamic environment; t

Outward Orientation Performance Appraisal System

The appraisal system should be more sensitive and responsive to current competitive
environment. This is possible through making the organization.

• Quality conscious in products and services to match international standards.

• Customer oriented (internally as well as externally)

• Cost effective

• Technology oriented

• Focused towards collaboration and teamwork

• People oriented

• Focused towards performance standards

• Focused towards values and culture that would help unbottle hidden talent.

In achieving the above, the PA system have a catalytic role to play.

58
PERIODIC PERFORMANCE REVIEW AND PLANNING:

There should be some aspect in the PA forms, which deals with the effect of Internal
Influences, organizational influences and external influences on performance of
employee to make the PA system more sensitive to changes.

 Increase awareness of company goals in order to integrate company and

individual expectations.

 Conducting training workshops for appraisers to remove biases and errors in

appraisal.

 Increasing transparency and open communication and minimizing confidentiality

in performance review discussions.

The work done towards modifying and developing performance appraisal systems,
time to time should be continued.

Integrating TQM into Performance Appraisal

• Individual rewards should be delinked with the PA system. The focus should
shift to team rewards. To recognize individual excellence, the team rewards. To
recognize individual excellence, the team should recommend rewards to tone up
motivation levels in the entire team.

• Continuous feedback and transparency in every system

• Focus on customer delight, both internal and external

Linkage with Rewards

Good performers should be recognized and rewarded, whereas weak performers need
to be encouraged to become better performers. PA systems when liked with individual
rewards and promotions create more problems than they help in motivating people.
They encourage fewer employees and discourage more. They do not develop the team
spirit but rather enhance interpersonal comparisons and power politics. The focus
should be shifted from rewarding the performance of few to development of
performance of many.

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However there is also a need for recognition and rewarding good work. Alternative
systems of rewarding with multiple reward/recognition mechanism are needed. But
these systems should be separated from other systems (like career planning).

Role of HRD

• HRD should develop relevant competencies and work through empowering

the line managers.

• Development of subordinates and teams should be key function of line

managers.

• HRD should facilitate the development of behavioral, managerial and

technical (multi functional) competencies in line managers.

• “Role analysis” should find a place in Jindal Brothers “role directories should
be published with key functions for each role.

• System effectiveness should be ensured through periodic review and survey of

organizational climate, ethos, organizational effectiveness and employee
satisfaction (concerning PA systems).

IMPLICATION OF THE PROJECT

In a simple way performance appraisal is meant to be an exercise to value a estimate

what a person has done and how has he done. The nature of Performance appraisal

and its effectiveness depends a great deal on how human resources in the organization

are viewed and treated. People are to be treated as resources of the organization.

Unlike the other resources, the human resources have the capability of expanding to

unlimited extents with proper investment in human capabilities.

Therefore, an organization interested in developing the capabilities of its employees,

should understand the nature and capabilities required to perform different functions

as well as the dynamics underlying the development of these capabilities in an

organizational content.

These capabilities can be considered to fall under four categories. They are:-

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 (i) Technical capabilities

(ii) Managerial capabilities

(iii) Behavioral (human) capabilities

iv) Conceptual capabilities

The extents to which the various capabilities are required for the performance of the

job differ from level to level in the organizational hierarchy.

New Objective of Performance Appraisal

Performance appraisal system can serve the following purposes if designed properly

(a) Help each employee to understand more and more about his role and become clear

about his functions.

(b) Helps each employee to understand his own strengths and weaknesses with

respect to his role and functions of the company.

(c) Helps identifying the developmental needs of employees.

(d) Helps increase mutuality between employee and his superiors.

(e) Provides an opportunity to the employees for self reflection and individual goal

setting

(f) Helps in preparing employees for performing at high levels by continuously

enforcing the required qualities.

(g) Create a positions and healthy climates in the organization.

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 RECOMMENDATIONS

1. The company should try to avoid employee resistance, which is associated

with change worlds true change follows instance. This for all kinds of systems
be it Performance Appraisal.

2. The HR Dept should attempt to obtain the maximum agreement of Managers

in respect of needs and objectives and purpose of the systems.

Being in the field of it improve the frequency of the trading modules and workshops.

3. More stress relieving packages should be offered to the mentally stressed staff.

4. Overtime should be taken care of at time of performance appraisal, which

would motivate the employees to perform better for longer hours.

5. Performance appraisal should after at proper span of time .

6. Performance appraisal should be done by expert person.

SAMPLE QUESTIONNANIRE

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I have undertaken a project on PERFORMANCE APPRAISAL SYSTEM. The
information furnished by you will help knowing the effectiveness of the present
appraisal and reward system and if need be designing of a new appraisal system. The
data will be kept confidential and will be used for academic purpose only.

1. In your company, the key competencies required for each job are already
identified.
a) Very true b) true
c) Partly true d) not true

2. There are mechanisms that help employees develop their potential for the next
rung of job.
a) very true b)true
c) partly true d) not true

3. Employees regularly receive feedback about their potential for higher level
jobs
a) very true b)true
c) partly true d) not true

4. Job rotation is practiced widely to help people develop their potential in new
areas.
a) very true b)true
c) partly true d) not true

5. Your company’s promotion policies are clearly defined and shared with all
employees.
a) very true b)true
c) partly true d) not true

6. Promotions are based strictly on need rather than to reward individuals?

a) very true b)true
c) partly true d) not true

7. The appraisal system gives each appraisee an idea of what is expected of him
next year?
a) very true b)true
c) partly true d) not true

8. It is designed to aid the appraisee and appraisers jointly understand the

former’s job?
a) very true b)true
c) partly true d) not true

9. The performance appraisal provides an opportunity for self review and

reflection?
a) very true b)true
c) partly true d) not true

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10. The appraisal procedure allows the appraisee to express his developmental
needs?
a) very true b)true
c) partly true d) not true

11. The system has scope to correct the biases of the assessor through a super
review?
a) very true b)true
c) partly true d) not true

12. The appraisal system provides for a frank discussion between appraiser and
appraisee?
a) very true b)true
c) partly true d) not true

13. The procedure allows for the communication of CEO‘s goal to the
workforce?
a) very true b)true
c) partly true d) not true

14. The appraisal system brings out the training needs of the employees.
a) very true b)true
c) partly true d) not true

15. The performance appraisal system clarifies the career prospects, aspirations
and intentions.
a) very true b)true
c) partly true d) not true

16. The appraisal system provides a rational basis for salary recommendations.
a) very true b)true
c) partly true d) not true

17. The company relates reward to your performance.

a) very true b)true
c) partly true d) not true

18. What kind of an appraisal system will bring out the best of an employee?
a) appraisal by all superiors b) appraisal by immediate
superior
c) appraisal by reference team c) appraisal by reference team
and self.

19. How do you support your subordinates?

_____________________________________________________________________
_____________________________________________________________________
____________________________________________________________________.

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sss

BIBLIOGRAPHY-

C.R KOTHARI

C.B GUPTA

360 DEGREE APPRAISAL (TV RAO)

INTERNET

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