Beruflich Dokumente
Kultur Dokumente
DISSERTATION REPORT
ON
PERFORMANCE APPRAISAL
AT JINDAL BROTHERS Pvt. Ltd
Submitted in partial fulfillment of the requirement for
Master of Business Administration (MBA),
FROM
Session: 2010-2012
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.
Acknowledgement
In
the
completion
of
this
project
report,
have
received
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:
Form a basis for personnel decisions: salary increases, promotions, disciplinary actions,
etc.
Performance improvement
Compensation
Placement
Career planning
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.
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.
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.
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.
review the performance formally at least annually (more frequently for those performing poorly)
emphasize the evaluators willingness to assist the employees efforts to improve performance
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.
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
Location
Client
Washim
ITC
Grain Godown
Cafeteria
Dept. Store
Bawal
Jagdishpur
ITC
Grain Godown
Cafeteria
Vatva , Ahmedabad
Delhi
Giex Foods
Pune
Mandsour
ITC
Grain Godown
Cafeteria
Targets achieved
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.
To identify the technique of Performance Appraisal followed in Jindal Brothers Pvt. Ltd.
To study how the employees are rated against these parameters
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
Explorative Research:- To gain familiarity with phenomenon or to achieve an insight into it.
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
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.
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.
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
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
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
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
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
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
30
25
20
15
10
5
0
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-
RECOMMENDATIONS
1.
To improve attendance there should be rewards for those employees who attains above
95% attendance.
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
b)true
d) not 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
b)true
d) not true
b)true
d) not true
b)true
d) not 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
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
b)true
d) not true
b)true
c) partly true
d) not 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
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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