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A

DISSERTATION REPORT
ON
PERFORMANCE APPRAISAL
AT JINDAL BROTHERS Pvt. Ltd
Submitted in partial fulfillment of the requirement for
Master of Business Administration (MBA),
FROM

INSTITUTE OF MANAGEMENT AND


TECHNOLOGY
SUBMITTED TO:
SUBMITTED BY:
Mrs. ESHA BATHLA
ASHUTOSH PANDEY
(Internal Guide)

M.B.A 4th Sem.

Session: 2010-2012

INSTITUTE OF MANAGEMENT AND TECHNOLOGY

Bazpur Road, Kashipur-244713 U.S.NAGAR (UTTARAKHAND)

(Approved By AICTE: Affiliated to Uttarakhand


Technical University)

Declaration
I hereby declare that the work presented herein is genuine work done originally by me and
has not been published or submitted elsewhere for the requirement of a degree programme.
Any literature, data or works done by others and cited within this dissertation has been given
due acknowledgement and listed in the reference section.

Signature of the candidate


(Ashutosh Pandey)

Acknowledgement
In

the

completion

of

this

project

report,

have

received

encouragement and support from various quarters, which need


special mention.

I wish to acknowledge my indebtedness to Mrs. Esha Bathla,


Institute of Management & Technology, Kashipur, under whom this
work has been completed, for extending all possible cooperation.

I am also thankful to all those people of Institute of Management &


Technology, who helped me directly or indirectly during this period.

MERE ACKNOWLEDGEMENT MAY NOT REDEEM THE DEBT I


OWE TO MY PARENTS FOR THEIR DIRECT/INDIRECT SUPPORT
DURING THE ENTIRE COURSE OF THIS PROJECT.

ASHUTOSH PANDEY

TABLE OF CONTENTS
Title
1. Chapter I
Acknowledgement
Profile of the Project Guide
Executive Summary
2. Chapter II
Company profile
Scope & Objective
3. Chapter III
Research methodology
4. Chapter IV
Performance management
5. Chapter V
Data analysis
6. Chapter VI
Findings
7. Chapter VII
Recommendations
8. Chapter VIII
Limitations
9. Chapter IX
Bibliography
10. Chapter X
Appendix

INTRODUCTION

PERFORMANCE APPRAISAL
Performance appraisal may be defined as a structured formal interaction between a subordinate
and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in
which the work performance of the subordinate is examined and discussed, with a view to
identifying weaknesses and strengths as well as opportunities for improvement and skills
development. Performance appraisal, also known as employee appraisal, is a method by which
the job performance of an employee is evaluated (generally in terms of quality, quantity, cost and
time). Performance appraisal is a part of career development.
Performance appraisals are regular reviews of employee performance within organizations.
Generally, the aims of a performance appraisal are to:

Give feedback on performance to employees.

Identify employee training needs.

Document criteria used to allocate organizational rewards.

Form a basis for personnel decisions: salary increases, promotions, disciplinary actions,
etc.

Provide the opportunity for organizational diagnosis and development.

Facilitate communication between employee and administration


Validate selection techniques and human resource policies to meet federal Equal Employment
Opportunity requirements.
Performance Appraisal Summary
Performance appraisal, while enabling a manager to identify the training needs of employees,
and evolving a training plan for them, also, serves to meet other objectives. Performance
appraisal satisfies the psychological needs individuals have to know how they are performing
their job and increases employees' job satisfaction and morale by letting them know that the
manager is interested in their progress and development. Systematic performance appraisal also
provides both the firm and the employee a careful evaluation, rather than a snap judgement of an
employee's performance. Many firms use performance appraisals to plan placements and
transfers and to provide input into decisions regarding salary increases, promotions, and
transfers. Finally, performance appraisals may be used as a basis for the coaching and
counselling of individual employees by their superiors. To summarize the uses of performance
appraisal:

Performance improvement

Compensation

Placement

Training & development needs assessment

Career planning

Job design error detection

CHARACTERISTICS OF AN APPRAISAL SYSTEM


Performance appraisal cannot be implemented successfully unless it is accepted by all
concerned. There should be a common and clear understanding of the distinction between
evaluation and appraisal. As Patten (1982) argues, evaluation aims at 'objective' measurement,
while appraisal includes both objective and subjective assessment of how well an employee has
performed during the period under review. Thus performance appraisal aims at 'feedback,
development and assessment.' The process of performance appraisal should concentrate on the
job of an employee, the environment of the organization, and the employee him- or herself.
These three factors are inter-related and inter-dependent. Therefore, in order to be effective, the
appraisal system should be individualized, subjective, qualitative and oriented towards problemsolving. It should be based on clearly specified and measurable standards and indicators of
performance. Since what is being appraised is performance and not personality, personality traits
which are not relevant to job performance should be excluded from the appraisal framework.
Some of the important considerations in designing a performance appraisal system are:
Goal The job description and the performance goals should be structured, mutually decided
and accepted by both management and employees.
Reliable and consistent Appraisal should include both objective and subjective ratings to
produce reliable and consistent measurement of performance.
Practical and simple format The appraisal format should be practical, simple and aim at
fulfilling its basic functions. Long and complicated formats are time consuming, difficult to
understand, and do not elicit much useful information.

Regular and routine While an appraisal system is expected to be formal in a structured


manner, informal contacts and interactions can also be used for providing feedback to
employees.
Participatory and open An effective appraisal system should necessarily involve the
employee's participation, usually through an appraisal interview with the supervisor, for feedback
and future planning. During this interview, past performance should be discussed frankly and
future goals established. A strategy for accomplishing these goals as well as for improving future
performance should be evolved jointly by the supervisor and the employee being appraised. Such
participation imparts a feeling of involvement and creates a sense of belonging.
Rewards Rewards - both positive and negative - should be part of the performance appraisal
system. Otherwise, the process lacks impact.
Feedback should be timely Unless feedback is timely, it loses its utility and may have only
limited influence on performance.
Impersonal feedback Feedback must be impersonal if it is to have the desired effect.
Personal feedback is usually rejected with contempt, and eventually de-motivates the employee.
Feedback must be noticeable The staff member being appraised must be made aware of the
information used in the appraisal process. An open appraisal process creates credibility.
Relevance and responsiveness Planning and appraisal of performance and consequent
rewards or punishments should be oriented towards the objectives of the programme in which the
employee has been assigned a role. For example, if the objectives of a programme are directed
towards a particular client group, then the appraisal system has to be designed with that
orientation.
Commitment Responsibility for the appraisal system should be located at a senior level in
the organization so as to ensure commitment and involvement throughout the management
hierarchy.
WHAT IS THE ROLE OF PERFORMANCE APPRAISAL?

We've seen from previous discussions, that people are one of a company's most valuable assets.
While most assets depreciate over time, people, viewed as assets, may actually appreciate. One
of the manager's major responsibilities is to improve and update the knowledge and skills of
employees -- appreciation of assets. Performance appraisal plays a significant role as a tool and
technique of organizational development and growth. In essence, effective appraisal systems
provide both evaluation and feedback.The main aim of the evaluation is to identify performance
gaps -- when performance does not meet the organizational standards -- whereas feedback is
necessary to inform employee about those performance gaps.
From the employee's perspective, performance appraisal informs them about what is required of
them in order to do their jobs, it tells them how well they have achieved those objectives and
helps them take corrective action to improve their performance, and, finally, it may reward them
for meeting the required standards.
The firm, on the other hand, needs a performance appraisal system in order to establish
principles of managerial accountability. Clearly, where employees are given responsibilities and
duties, they need to be held accountable. One of the functions of performance appraisals is to
ensure that people are accountable for their organizational responsibilities.
Perhaps the most significant benefit of performance appraisals is the opportunities they provide
supervisors and subordinates to have one-on-one discussions of important work issues. During
appraisals, subordinates and supervisors can focus on work activities and goals, identify and
correct existing problems, and encourage better future performance.
Performance Appraisal and Motivation
Motivational research has recognized the power of recognition as an incentive (see Maslow and
the Expectancy Theory of Motivation). Performance appraisals provide employees with
recognition for their work efforts. The appraisal system provides the supervisor with an
opportunity to indicate to employees that the organization is interested in their performance and
development. This recognition can have a positive motivational influence. on the individual's
sense of worth, commitment and belonging.

Performance Appraisal and Training and Development


Performance appraisals identify performance gaps. As such, they provide an excellent
opportunity for a supervisor and subordinate to recognize and agree upon individual training and
development needs. Performance appraisal discussion may identify the presence or absence of
work skills. Further, the need for training can be made more relevant if attaining the requisite job
skills is clearly linked to performance outcomes. Consolidated appraisal data can also help form
a picture of the overall organizational training requirements.
Performance Appraisal and Recruitment
Recruitment and selection procedures need to be evaluated. Appraisal data can be used to
monitor the success of a firm's recruitment and selection practices. From this data, the firm can
determine how well employees who were hired in the past are performing.
Performance Appraisal and Employee Evaluation
Employee evaluation is a major objective of performance appraisal. Given the major functions of
management -- planning, organizing, leading and controlling -- it is clear that evaluations
(controlling) need to be done.
At its most basic level, performance appraisal is the process of examining and evaluating the
performance of employees. However, the need to evaluate is also a source of tension as
evaluative and developmental priorities appear to clash. Some management experts have argued
that appraisal cannot serve the needs of evaluation and development at the same time.
Performance Appraisal and Total Quality Management (TQM)
With the advent of TQM (Total Quality Management) and the extensive use of teams, traditional
performance appraisal systems have come under some criticism. For example, rather than
motivating employees, conflict may be created when appraisals are tied to merit pay and when
that merit pay is based on a forced ranking.

W. Edwards Deming, the founder of total quality management (TQM) has long been associated
with the view that performance appraisals ought to be eliminated. Many TQM proponents claim
that performance appraisals are harmful.

PERFORMANCE APPRAISAL - PROCESS MAP

PERFORMANCE APPRAISAL METHODS


1. Graphic rating scale

2. Paired Comparison
3. Forced choice approach
4.Easy Appraisal
5.3600 appraisal

Graphic Rating Scale: A performance appraisal that rates the degree to which the employee
has achieved various characteristics.
1)The graphic rating scale is the most common type of appraisal used.
2)Various characteristics such as job knowledge or punctuality are rated by the degree of
achievement.
3)The rate usually receives a score of 1 to 5, with 5 representing excellent performance.
4)Some forms allow for additional comments.

Paired-comparison Approach: A performance appraisal that measures the relative


performance of employees in a group.
1)This is a method of performance evaluation that results in a rank ordering of employees to
come up with a best employee.
2)This type of approach measures the relative performance of employees in a group.

Forced-choice Approach: A performance appraisal that presents the appraiser with sets of
statements describing employee behavior; the appraiser must choose which statement is most
characteristic of the employee and which is least characteristic.

Easy Appraisal: Sometimes the supervisor must write a description of the employees
performance. The easy appraisal is often used along with other types of appraisals, notably
graphic rating scales. They provide an opportunity for supervisors to describe aspects of
performance not thoroughly covered by an appraisal questionnaire.

360-degree Performance Appraisal: Evaluating Employees From All


Angles
Traditional performance appraisals, as discussed above, can be both subjective and simplistic.
At times, they can also be deemed to be "political". In an attempt to improve this methodology,
some companies have turned to 360-degree appraisals. 360 appraisals pool feedback from a
department's internal and external customers to ensure a broader, more accurate perspective of an
employee's performance.
360-degree performance appraisal is an attempt to answer the question: "How can a supervisor
evaluate an employee he or she sees only a few hours each week?"

Benefits of Performance appraisal


For the organization:
The organization comes to know the true position of the employees working capacities and the
problems they face while working in the organization. This performance appraisal system also
acts as a motivating factor for the employees, which helps the organization to get better results.

For the appraise:


The appraise fells themselves an important part of the organization, they get a chance to express
their views in front of their superiors; they get a platform to express their ideas. The employee
comes to know the truth about:
To what extent they have achieved their objectives.
In what respect their work has been most successful.
Are there any aspects of their work, which they have not completed?

Are many other question, which make them assess rightly. ..


Guidelines for effective performance evaluation interviews...

emphasize positive aspects of employee performance

tell employee that the purpose is to improve performance, not to discipline

conduct the review in private

review the performance formally at least annually (more frequently for those performing poorly)

make criticisms specific

focus on performance, not personality

stay calm; do not argue

identify specific actions the employee can take to improve performance

emphasize the evaluators willingness to assist the employees efforts to improve performance

end by stressing positive

Appraisal Process
In order to obtain a better understanding of how the performance appraisal has been put together
by The Corporation, the researcher has provided an overview of the companys performance
appraisal process. The researcher felt that the overview of the performance appraisal process
would be necessary, since the process provided a framework for the performance appraisal.

PRE-APPRASIAL STEPS
The performance evaluation can be made for variety of reasons counseling, promotions, salary
increases, administration or combination of these. It becomes very necessary to begin by stating
the objectives of evaluation programs very clearly and precisely. The personal appraisal system
should address the question who, what, how of performance appraisal.
These questions are the components of these appraisal systems which are discussed below
individually.

WHO OF THE APPRAISAL OR WHO IS TO RATE.


The immediate superior, the head of the department or any other can rate the performance of an
individual. In addition to this, sum organizations follow the system of self appraisal and /or
appraisal by peers. A group, consisting of his senior, peers and subordinates, can do appraisal,
whoever is rating; he should be trained and impartial. In most of the organizations the ratings is
done by his immediate superior who is considered the best person to understand his subordinates
strengths and weaknesses. Now a day some organizations are following the method of selfappraisal.

THE WHATOF APPRAISAL It is considered with


Creating and maintaining a satisfactory level of performance of employees in their present job.
Highlighting employees needs and opportunities of for personal growth and development.
Aiding in decision making for promotions, transfers, layoff and discharges.
Promoting understanding between supervisors and his subordinates.
Providing a useful criterion for determining the validity of selections and training methods for
attracting individuals of higher caliber to the organization.

THE WHEN OF APPRAISAL


The when answers the query the frequency of appraisal? The informal counseling should occur
continuously but the manager should discuss an employees work as soon as he gets an
opportunity to provide positive reinforcement and use poor work as basis of training. The time
and period of appraisal differs according to the need and nature of the organization.

THE WHERE OF APPRAISAL


The where indicates the location where employee should be evaluated? It is usually done at
work place or office of the supervisor.

THE HOW OF APPRAISAL

Under this, the organization must decide what different kinds of methods are available and which
of these may be used for performance appraisal. On the basis of comparative advantages and
disadvantages, the nature and philosophy of management and the needs of an organization; the
method of appraisal is decided.
COMPANY PROFILE
Jindal Brothers Pvt. Ltd. specializes in Design, Engineering, Fabrication and Erection of PreEngineered 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 Companys 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 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 clients 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 customers need of
a Pre-Engineered building at any place or country.

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.

Automatic

Purlin Roll

Welding

Forming

Machine

Machine

Roofing Profile
Line

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

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.
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.
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 Top Management.
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.

OBJECTIVES OF THE STUDY

To identify the technique of Performance Appraisal followed in Jindal Brothers Pvt. Ltd.
To study how the employees are rated against these parameters

To identify how the performance of the employees is improved and enhanced

To provide suggestions & recommendations to improve their Performance Appraisal

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 4 HR people 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 has been made towards
improving the effectiveness of the organization.

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

DESCRIPTIVE RESEARCH

DIAGNOSTIC RESEARCH

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.

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
todays 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 organizations 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

PERFORMANCE APPRAISAL AND MANAGEMENT,


Journal of Performance Appraisal Techniques November 4,2001-Vol.1,No.4pp.418 By
Fletcher C
Performance appraisal has widened as a concept and as a set of practices and in the form of
performance management has become part of a more strategic approach to integrating HR
activities and business policies. As a result of this, the research on the subject has moved beyond
the limited confines of measurement issues and accuracy of performance ratings and has begun
to focus more of social and motivational aspects of appraisal. This article identifies and discusses
a number of themes and trends that together make up the developing research agenda for this
field. It breaks these down in terms of the nature of appraisal and the context in which it
operates. The former is considered in terms of contemporary thinking on the content of appraisal
(contextual performance, goal orientation and self awareness) and the process of appraisal
(appraiserappraisee interaction, and multi-source feedback). The discussion of the context of
appraisal concentrates on cultural differences and the impact of new technology.

Performance Appraisal as Effective Management or Deadly Management Disease


Journal of Performance Appraisal Management Jan1,2005- Vol.80, Pages18 by Gregory H.
Dobbins
Understanding person and system sources of work variation is fundamental to performance
appraisal. Two divergent perspectives on this issue, the traditional human resource management
view and the statistical process control view (Deming, 1986), are contrasted. Two studies are
reported that investigate two specific questions that arise from a broader view of the appraisal

process. Results indicate that managers and subordinates believe that typical poor performance
has different causes and that actual productivity levels far outweigh person or system sources of
performance variance in appraisal judgments.

A Contingency Approach to Appraisal Satisfaction


Journal of Performance Appraisal Approaches,July2009,Vol.49,Pages65 by Gregory H.
Dobbins
The present study explored the moderating effects of organizational variables on the appraisal
characteristic-appraisal satisfaction relationship. Analyses indicated that the appraisal
characteristics of action plans, frequency, and rater training were more positively related to
appraisal satisfaction when subordinates experienced role conflict, were not closely monitored,
and supervisors had a large span of control. The results provide substantial support for
conceptualizing appraisal satisfaction as a contingent function of both appraisal characteristics
and organizational variables. Implications of the findings for the design of appraisal systems,
appraisal effectiveness, and future research are discussed.

Differential Performance Appraisal Criteria


Journal of Performance Appraisal Criteria,Oct2010,Vol.18, pages 72 by Taylor Cox
Performance appraisal ratings of 125 first-level managers were analyzed to investigate the degree
to which the criteria used to evaluate the overall job performance of black managers differs from
that used to evaluate white managers. The performance appraisal form included items that
measured both the social behavior dimension and task/goal accomplishment dimension of job
performance. The appraisal ratings of both groups on each dimension were correlated with
measures of overall job performance and promote ability. Results indicated that social behavior
factors are more highly correlated with the overall job performance of black ratees than for white
ratees. Implications of these results for both black managers and organizations are discussed.

A Restatement of the Satisfaction


Journal of Performance Hypothesis,Vol.59,Sept 2010,Pages 45 by Dennis W. Organ,
This article reviews recent evidence in support of Organs (1977) argument that satisfaction more
generally correlates with organizational prosaically or citizenship-type behaviors than with
traditional productivity or in-role performance. An attempt is then made to interpret just what it is
in satisfaction measures that provides this correlation, leading to the suggestion that fairness
cognitions comprise the major factor. Implications of this interpretation for theory, research, and
management practice are offered.

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.
1* Tabular form of Response
2* Inference
3* Remarks on each question

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

Response Category

No. of responses

Percentage

Very true

True

Partly true

18

37

74

Not true
80
70
60
50
40 Very true
30

True

Partly true

Not true

20
10
0
No. of res ponse s

Perce ntage

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.

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

Response Category

No. of responses

Percentage

Very true

True

10

Partly true

25

50

Not true

20

40

50
45
40
35
30
25 Very true
True
20
15
10
5
0
No. of res ponse s

Partly true

Not true

Perce ntage

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 appraise 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.

3. Employees regularly receive feedback about their potential for higher level jobs?
Response Category
Very true

No. of responses

Percentage

True

16

Partly true

14

35

70

Not true
70
60
50
40
30

Very true

True

Partly true

Not true

20
10
0
No. of res ponse s

Perce ntage

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 predetermined plans. Again due to flexibility in job content, some people may have found problems
in planning their performance systematically.

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

Response Category
Very true

No. of responses

Percentage

14

True

18

36

Partly true

25

50

Not true
50
45
40
35
30
25 Very true
True
20
15
10
5
0
No. of res ponse s

Partly true

Not true

Perce ntage

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.

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


Response Category

No. of Responses

Percentage

13

26

37

74

Very true
True
Partly true
Not true
80
70
60
50
40 Very true
30

True

Partly true

Not true

20
10
0
No. of Re spons es

Inference

Perce ntage

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.

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

Response Category

No. of Responses

Percentage

Very true

True

Partly true

25

50

Not true

21

42

50
45
40
35
30
25 Very true
True
20
15
10
5
0
No. of Re spons es

Inference

Partly true

Not true

Perce ntage

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.

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

True

10

20

Partly true

26

52

Not true

14

28

60
50
40
30 Very true

True

Partly true

Not true

20
10
0
No. of Re spons es

Inference

Perce ntage

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.

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

No. of Responses

Percentage

True

14

28

Partly true

22

44

Not true

14

28

Very true

45
40
35
30
25
20 Very true

True

Partly true

Not true

15
10
5
0
No. of Re spons es

Inference

Perce ntage

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 Brothers PA system does not score
well in the aspect of transparency in communicating an employees
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.

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

Response Category
very true
true
partly true
not true
50
45
40
v ery true
35
30
25
20
15
partly true
10
5
0
No. of Re spons es

Inference

No. of Responses
0
2
25
23

Percentage
0
4
50
46

true

not true

Perce ntage

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.

10. The appraisal procedure allows the appraisee to express his developmental needs?
Response Category
very true

No. of Responses
0

Percentage
0

True
partly true
not true

8
16
26

16
32
52

60
50
v ery true

True

40
30
20

partly true

not true

10

0
No. of Re spons es

Inference

Perce ntage

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 individuals effectiveness.

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

Response Category

No. of Responses

Percentage

very true

true

partly true

14

28

not true

34

68

70
60
50
v ery true

true

40
30
20

partly true

not true

10
0
No. of Re spons es

Inference

Perce ntage

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.

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

Response Category

No. of Responses

Percentage

very true

True

12

partly true

44

88

not true
90
80
70

v ery true

True

60
50
40
30

20partly true

not true

10
0
No. of Re spons es

Inference:

Perce ntage

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.

13. What kind of an appraisal system will bring out the best of an employee?
Response Category
appraisal by all superiors

No. of Responses
10

Percentage
20

appraisal by immediate
superior
appraisal by reference team
appraisal by reference team
and self.

10

15
20

30
40

40
35

appraisal by all superiors

30
25

appraisal by immediate superior

20
15

appraisal by reference team

10
5
0

appraisal by reference team and self.

No. of Re s pons e s

Remarks

Pe rce ntage

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.

FINDINGS
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.

RECOMMENDATIONS

1.

To improve attendance there should be rewards for those employees who attains above
95% attendance.

2. There should be training sessions to improve team building.


3. There should be proper training for appraisal to the employees.
4. In the beginning of the year employee must know the performance standards on which
his/her performance will be judged in end of year.
5. More stress relieving packages should be offered to the mentally stressed staff.
6. Overtime should be taken care of at time of performance appraisal, which would motivate
the employees to perform better for longer hours.
7. Performance appraisal should after at proper span of time .
8. Performance appraisal should be done by expert person.

CONCLUSION

Performance appraisal is the process of reviewing employee performance vis--vis the set
expectations in a realistic manner, documenting the review, and delivering the review verbally in
a face-to-face meeting, to raise performance standards year over year through honest and
constructive feedback. In the process management expects to reinforce the employees strengths,
identify improvement areas so that one can work on them and also set stretched goals for the
coming year.
Effective performance management requires a good deal of face-to-face supervisor-employee
interaction. By knowing the subordinates, a supervisor can steer them onto a path of greater
productivity and optimized output. It is one of the most significant and indispensable tool for an
organization as it helps in getting to know the people who work for them. provides information,
which helps in taking important decisions for the development of an individual and the
organization.

QUESTIONNANIRE
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
c) partly true

b)true
d) not true

3. Employees regularly receive feedback about their potential for higher


level jobs
a) very true
c) partly true

b)true
d) not true

4. Job rotation is practiced widely to help people develop their potential in


new areas.
a) very true
c) partly true

b)true
d) not true

5. Your companys promotion policies are clearly defined and shared with
all employees.
a) very true

b)true

c) partly true

6.

Promotions
individuals?
a) very true
c) partly true

d) not true

are

based

strictly

on

need

rather

than

to

reward

b)true
d) not true

7. The appraisal system gives each appraisee an idea of what is expected


of him next year?
a) very true
c) partly true

b)true
d) not true

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


formers job?
a) very true
c) partly true

b)true
d) not true

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


reflection?
a) very true
c) partly true

b)true
d) not true

10. The appraisal procedure allows the appraisee to express his


developmental needs?
a) very true
c) partly true

b)true
d) not true

11. The system has scope to correct the biases of the assessor through a
super review?
a) very true
c) partly true

b)true
d) not true

12. The appraisal system provides for a frank discussion between


appraiser and appraisee?
a) very true
c) partly true

b)true
d) not true

13. The procedure allows for the communication of CEOs goal to the
workforce?
a) very true
c) partly true

b)true
d) not true

14. The appraisal system brings out the training needs of the employees.
a) very true
c) partly true

b)true
d) not true

15. The performance appraisal system clarifies the career prospects,


aspirations and intentions.
a) very true
c) partly true

b)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
superior

b) appraisal by immediate

c) appraisal by reference team


team and self.

c) appraisal by reference

19. How do you support your subordinates?


_____________________________________________________________________________________
_____________________________________________________________________________________
____________________________________.

Bibliography
Aswathappa K, Human Resource & Personnel Management, Tata McGraw- Hill
Publishing Co. Ltd., New Delhi, Sixth edition 2001
Kothari C.R., Research methodology methods & techniques, Wishwa Prakasan ublishing
Co. Ltd., New Delhi, Sixth edition 2001.
Human Resources Management by P.Subarao

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