EMPLOYEES DISCERNMENT AND THE

EFFECT OF PERFORMANCE APPRAISAL ON

THEIR WORK OUTCOMES @ TRF LIMITED

SUBMITTED IN PARTIAL FULFILMENT OF

POST GRADUATE DIPLOMA IN

MANAGEMENT 2014 -2016

SUBMITTED BY
Ankita Singh
PGDM 2014-2016
ROLL NO. 14DM008
April to June 2015

INDUSTRY MENTOR

FACULTY MENTOR

Mr. T. Sandeep

Prof. Bala Subramanian

Manager HR

Assistant Professor

TRF Limited

BIMTECH

11, Station Road,

Gothapatna

Burmamines, Jamshedpur-831007

BBSR, Odisha-751003

FACULTY GUIDE DECLARATION

INDUSTRY GUIDE DECLARATION

ii

ACKNOWLEDGEMENT

This project bears the imprint of many people who have assisted me in the successful completion of
this report. I gratefully acknowledge the contribution of all the people who took active part and
provided valuable support to me during the course of this project.

To begin with, I would like to offer my sincere thanks to TRF Limited for giving me an opportunity
to do my summer internship with the esteemed organization.

With due reverence, I acknowledge the valuable support of T. Sandeep, Manager HR, for giving me
the opportunity to do my summer internship under his guidance. Without his guidance, support and
valuable suggestions during the research, the project would not have been accomplished.

My heartfelt gratitude also goes to the entire Human Resources team for their co-operation and
willingness to answer all my queries, and provide valuable assistance.
I also sincerely thank Bala Subramanian, my faculty mentor at BIMTECH, who provided valuable
suggestions, shared his rich corporate experience, and helped me script the exact requisites.
Last, but not least, I would like to thank Richa Jena (Assistant Officer HR), Bipin Karkatta
(Manager HR), Steve Gunjan (Senior Officer HR) for sharing their experience and giving their
valuable time to me during the course of my project.

Ankita Singh
PGDM (2014-16)
Roll No. 14DM008
BIMTECH, Bhubaneswar

iii

DECLARATION

I, Ankita Singh, a student of Birla Institute of Management Technology (BIMTECH), hereby declare
that I have worked on project titled Employees discernment and the effect of performance
appraisal on their work outcomes during my summer internship at TRF Limited, in partial
fulfilment of the requirement for the Post Graduate Diploma in Management program.

I guarantee my research work to be authentic and original to the best of my knowledge in all
respects of the process carried out during the project tenure.

My learning experience at TRF Limited, under the guidance of Mr. T. Sandeep, Manager HR, and Prof.
Bala Subramanian, Assistant Professor HR , has been truly enriching

Ankita Singh
PGDM (2014-16)
Roll No.14DM008
Date:

iv

LETTER OF TRANSMITTAL

Date:
Mr. T. Sandeep,
TRF, 11 Station Road,
Burma Mines, Jamshedpur-831007
Dear Sir,
Re: Summer Project Report
Attached herewith is a copy of my summer-project report Employees discernment and the effect of
performance appraisal on their work outcomes which I am submitting in order to mark the
completion of an Eight-week summer internship at you organization. This report was prepared by me
using the best of practices and summarizes the work performed on the project and is being submitted in
partial fulfilment of the requirements for award of diploma.
I would like to mention that the overall experience with the organization was very good, and helped me
to know how work is carried out in real practice with the help of your esteemed organization. I feel
honoured that I got an opportunity to work with TRF Limited, a company of great repute.
I hope I did justice to the project and added some value to the organization. Suggestions/comments
would be appreciated.
Yours truly,
Ankita Singh
PGDM (2014-16)
Roll No.14DM008

LETTER OF AUTHORIZATION

vi

TABLE

OF

CONTENTS

Page No.
I

Certificate
Ia

Faculty Mentor

Ib

Industry Mentor

ii

II

Acknowledgement

Iii

III

Declaration

Iv

IV

Letter of Transmittal

Letter of Authorization

Vi

VI

Table of contents

Vii

VII

List of tables

ix

VIII

Executive Summary

Introduction to the company

1a

Profile

1b

Area of business

1c

Technology associates

1d

Locations

Review of Literature

2a

Objectives of performance appraisal

2a1

Definition of performance appraisal

2a2

Discernment of pa in the organization

2a3

Conceptual framework of the study

2a4

Employee discernment of performance appraisal

2a5

Employee discernment of pa and work outcomes

Problem Definition

3a

Background to the problem

3b

Statement to the problem

3c

Objectives

10

1.

2.

3.

4.

Approach to the problem

11

4a

Path adopted

12

4b

Parameters taken to solve the problem

12

Research Methodology

13

5a

Research Design

14

5b

Data Collection

14

5c

Sampling Technique

14

5d

Questionnaire development

15

Data Analysis

17

6a

Demographic characteristics of respondents

18

6b

Employees discernment of the existing pa at TRF

20

6c

Employees level of work performance at TRF

24

6d

Employees level of work affective organizational

commitment at TRF

26

5.

6.

6e

28

Employees level of work turnover intention at TRF

7.

Limitations

30

8.

Conclusions and Recommendations

32

9.

Exhibits

36

Questionnaire

37

References

40

9a
10.

LIST

OF TABLES
Page No.

Stratified Random Sampling Design

15

II

Sex, Age, and Experience along with Department of

the employees

18

III

Employees discernment of the existing Performance

Appraisal at TRF

20

IV

Employees level of Work Performance at TRF

24

Employees level of work Affective Organizational

Commitment at TRF

26

VI

Employees level of work Turnover Intention at TRF

28

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY
Introduction to the problem
As we all are aware that in the world of competition as organizations make efforts to remain
competitive and sustainable, human resource (HR) professionals and should collaborate strongly in
designing strategies, which are more productive and more useful. Among these functions, one of the
most critical ones that is performance appraisal. An organization implements the performance appraisal
system to allocate rewards for the employee, provide development advice as well as to obtain their
perspectives, and justice perception about their jobs, department, managers, and organization.
Employees discernment of fairness of performance appraisal is a significant factor in employee
acceptance and satisfaction of performance appraisal. A good perception will create a positive working
environment in the organization, while a negative perception will affect the company performance.
These perceptions depend on the manager or supervisors actions and behaviours toward the employee.
If performance appraisals are perceived as unfair, therefore, the benefits can diminish rather than
enhance employees positive attitudes and performance.

Specifically, the discernment of unfairness can adversely affect employees organizational commitment,
job satisfaction, performance as well as their work related stress, organization citizenship behaviour.
The number of studies has examined that the effect of performance appraisal system on employee had
increased. In another study by Brown 2010, revealed that there was a direct relationship between
performance appraisal satisfaction and employee outcomes, which is mostly job satisfaction among
employees.

Research Methodology
There were total 5 functions/departments in which survey was done. Then a questionnaire was prepared
and data collection was done through:

Hard Copy/Offline Survey

Personal/ Telephonic Survey

xi
After drafting the questionnaire, I got it verified with the mentor. Feedback from all the employees was
collected through various means like, employees personal interviews with senior officials & submitting
of responses in a hard copy. Further these responses were compiled and sent to the employees
controlling officers through similar mechanism of (offline & personal interviews) for their evaluation.

xii

INTRODUCTION TO TRF LIMITED

INTRODUCTION TO THE COMPANY

Profile
The combined competencies of three companies, the erstwhile Tata Robins Fraser (established in 1962),
Tata Material Handling Systems (formerly Tata Man. Ghh., established in 1978), and Tata Technodyne
(established in 1996), helped create TRF. The company is regarded as one of the most comprehensive
sources of engineering equipment, systems and services. It manufactures bulk material handling and
processing equipment, bulk material handling systems, coke oven equipment, coal dust injection
systems for blast furnaces, coal beneficiation systems, and port and yard equipment. EPC and EPCM
services including mini blast furnace technology are also provided. The company caters to diverse
industries including power, metallurgy, chemical, mining and cement.

Areas of business
The Company offers a wide range of products and services.

Bulk material handling equipment: TRF manufactures conveyor components such as idlers,
pulleys, take ups, scrapers, belt trippers / shuttle conveyors, blow feeders, apron feeders,
vibrating/reciprocating feeders, steep angle conveyors and portable conveyors. Its range of yard
equipment includes stackers, bucket wheel reclaimers, and scraper and blending reclaimers.
Wagon handling equipment, such as wagon loaders, ship loaders and ship unloaders, is also
produced.

Bulk material processing equipment: Vibrating screens including scalping screens, de-water
risers, de-sliming screens, and foundry shake-outs are manufactured. The company also
produces crushing equipment such as, cone crushers, double roll crushers, hammer mills,
impactors, jaw crushers, ring granulators, rotary breakers and single roll crushers.

Bulk material handling systems: Conveyor systems for use in plants, cross country conveyor
systems, underground conveyor systems, raw material bedding and blending systems, and rapid
loading systems are manufactured.

Coke oven equipment: The company produces stamping, charging and pushing equipment,
charging gas transfer systems, and equipment for conventional top charge batteries, such as
charging cars and pushing cars.

Coal dust injection systems: The company manufactures injection systems whereby pulverised
and dried coal is conveyed in dense flow mode and injected through blast furnaces for improved
performance and reduced coke consumption.

Coal beneficiation systems: Coal beneficiation systems that use the dense media cyclonecum-floatation process and jig system process are produced. De shaling is done using barrel
washer systems.

Port and yard equipment: The Company manufactures slewing cranes, grab ship and barge un
loaders, ship and barge loaders, barrel re claimers and stacker re claimers. It also makes special
purpose EOT cranes for steel mills.

EPC and EPCM services: TRF offers support services for infrastructure, power generation,
ferrous and non-ferrous metals, including mini blast furnace technology and coal washeries.

Technology associates:
The Company has several collaborators and technology associates. These include SAARTECH,
Germany, for stamping, charging, pushing equipment, charging gas and transfer cars; Techint
Italimpianti, Italy, for yard and port equipment manufacture; BMH, Germany, for coal dust injection
systems; Schalke, Germany, for coke oven machinery; Hatch Associates, Australia, for high capacity
conveying systems and coal washeries; SMS Demag, Australia, for mini blast furnace; Flour Daniel
India and LTA Process Engineering.

Locations
The companys headquarters and factory are located at Jamshedpur, with offices in Hyderabad,
Mumbai, New Delhi and Nagpur.

LITERATURE REVIEW

LITERATURE REVIEW
Performance appraisal is considered as one of the most important activities of HRM in both private and
public sector organizations. The existence of performance appraisal principles has been observed since
early 1900s.

1.1. Objectives of PA
Appraisal is the analysis of the success and failures of an employee and the assessment of their
suitability for training and promotion in the future. Appraisal is a key component of performance
management of employees. Its objectives are to:

Increase motivation to perform effectively.

Increase staff self-esteem.

Gain new insight into staff and supervisors.

Distribute rewards on a fair and credible basis.

Develop valuable communication among appraisal participants.

1.2. Definition of PA
A performance appraisal is known by other terms like employee appraisal, performance review. It has
been defined as the process of identifying, evaluating and developing the work performance of
employees in the organisation. It is conducted by self, peers, seniors and junior. But generally in formal
method it is conducted by the immediate manager or supervisor under whom the person is directly
working. Appraisal should measure both performance in accomplishing goals, plans and performance
as a manager.
Performance appraisal is defined as a tool used to achieve the following objectives with an organization:
To retain control over their employees
To involve the employee in setting goals for the organization.

To evaluate the extent to which each employees day to day performance is linked to the goals
established by the organization.

To improve the employees performance by continuous communication and feedback between both
the employee and the organization.

 To specify the behavior that employees must perform in accordance with the organizational
objectives.

1.3. Discernment of PA in an organization

It matters if performance appraisal gives a positive impact or a negative impact to the employees. It
shows whether the employees get motivated to perform better, if they receive a good feedback or do they
get de-motivated and loose interest in their job. Till now we discussed the purpose, uses of PA in the
organization, but the discernment i.e. the understanding of Performance Appraisal is not taken into
consideration in most cases which is important for the employee as well as the organization. If the
employees don't recognize this, then they would suffer unnecessarily in the organization the reason
being that, an employee has a certain level of expectation from his company when he joins it; he expects
some kind of growth from it, also the organization expects a lot from him. But, a negative feedback of
performance would largely hamper him mentally and make him loose his interest in his job. There
would be change in his attitude, which would be problematic for him as well as the organization. He
would be de motivated to achieve the organizational objectives. Most Employees think that , their
promotion or salary increments largely depends on their performance. Employees therefore are in a
dilemma and consider this situation as 'survival of the fittest' .They know for a fact that, their
performance is only taken into consideration at the end of the day, and in order to grow in the company
they need to be proactive towards their work. The feedback the employee receives from his superior,
may simply describe the level of performance achieved. Hence, it is important for the managers to
conduct the appraisal process properly.

1.4.

Conceptual framework of the study

Employee's
discernment of PA

Work Performance

Effective

Commitment

Work Outcome
Turnover Intention

1.5. Employees discernment of PA system

Employee perception of fairness of performance appraisal has been studied as a significant factor in
employing acceptance and satisfaction of performance appraisal .In discussing the performance
appraisal process inside any organization, it is very important for the success of the PA, to determine
how those employees who are responsible for conducting the appraisals (appraisers) as well as those
being appraised (appraises) generally perceive the PA process.

1.6. Employees discernment of work outcomes

In the study of Kuvaas (2010), the perceived effectiveness of performance appraisal is found to have a
positive relationship with work performance and organizational commitment. Further, employees
perceptions about the politics of performance appraisal are negatively related to job performance and 8
positively related to turnover intention. This is the major reason employees resist in implementing the
performance management systems.

Work Performance

It can be defined in two ways:

1. It views work performance as a result or consequences of action.
2. It is the action or behavior that is relevant to achieving organizational goals

Organizational Commitment

Organizational commitment is conceptualized by Allen and Meyer, (1990) into three dimensions:
1. The first one is attitudinal or affective commitment, which is drawn from positive work experience,
2. the second one is continuance commitment, which is derived from prior investment and possible
cost of leaving the organization,
3. The third one also normative commitment, which is loyalty, or sense of obligation to remain
attached to the organization.

Turnover Intention

Turnover intention (TOI) is defined as the reflection of employee intention either to stay or leave the
organization they worked for due to dissatisfaction or searching new job opportunity. Turnover
intention is an attitudinal factor affecting employee intent to quit and actually quitting an organization.

PROBLEM DEFINITION

PROBLEM DEFINITION
Background of the Problem
This study is conducted with the aim to explore the relation that is between employees discernment of
PA and their work outcomes, in the form of work performance affective commitment and turnover
intention, because one of the factors that affect employees work outcomes is their perception towards
the performance appraisal practice of the organization. This has been done to realize the current state of
the employee outcomes and create strategies to improve work performance and affective organizational
commitment, thus reducing employees turnover.
Thus, the present study attempts to examine the perception of the employees towards the various
aspects of the current performance appraisal system and its impact on their work outcomes. Opinions of
employees could have important implications in the design and implementation of performance
appraisal system in organizations.

Statement of the Problem

As we know that performance appraisal is one of the main parts of organizational which can consist of
several organizational processes such as measuring of work performance, establishing of purposes and
reward management. In comparison to a lot of benefits the performance appraisal has many problems
also which are the irrelevant criteria used to appraise the performance of the employees like: shortage
of skills and knowledge of the raters, the subjectivity, favoritism and bias of the raters, lack of
documentation and inability to provide feedback on time are some of the problems most employees
raise. As a result of this situation the employees perception towards the PA system is adversely affected
and they express dissatisfaction about the implementation of PA practice.
And if employees are satisfied with the PA of the organization, they will judge well and give every
possible effort to carry out their responsibilities assigned to them efficiently and effectively.
Having these; differences in perceptions of employee about the existing performance appraisal practice
based on their perception of fairness is a big question at TRF Limited. This study is therefore, seeks to
investigate the employee perception toward the existing PA practice and the resulting work outcomes
by analyzing; What consequences will happen in the area of work performance, affective commitment

and turn over intentions as result of employees different perception of performance appraisal practice
at TRF.

Objectives
General objective of this study is to find out the employees discernment and the effect of performance
appraisal on their work outcome at TRF Limited
Whereas the specific objective of this study which are develop on the basis of the general objective are
as follows:

To determine employees discernment about the existing PA of the organization

To determine the employees work performance, affective organizational commitment and their

intention to leave for the employees.

To determine the employees work outcomes in the form of work performance, affective
commitment and turnover intention with respect to their perception of the current performance
appraisal system.

10

APPROACH TO PROBLEM

APPROACH TO PROBLEM

Path Adopted
Firstly, the current perception of employees towards the performance appraisal is identified which has
given signal to the human resource management of the organization to take remedial actions on the
overall practice of performance appraisal in order to minimize the factors which are leading to negative
perception of employees.
Secondly, it is a contribution in the practice of performance appraisal at TRF Limited for further
research to bring behavioural change in the area of performance appraisal both in the mind of the
appraiser, appraises and those parties responsible in the design of the instruments of PA forms.
Thirdly, it gives me the opportunity to gain deep knowledge in the practice of performance appraisal.

Parameters taken to solve the problems

This study focused on two independent variable employees perception of performance appraisal and
employees work outcomes in the form of work performance, affective organizational commitment, and
turn over intention. Other variables being affecting and affected by the perception of employees on
performance appraisal are not addressed.

12

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
This part includes the Research design, Data collection, Sampling techniques, Questionnaire
development.

Research Design
It was done through a survey in the form of the questionnaire in which the data was collected across the
population through sampling. Quantitative survey is the most appropriate one to use if the purpose is to
describe the degree of relationship which exists between the variables.

Therefore; the quantitative method was used by considering all employees of the organization and
questionnaires was distributed to respondents.

Data Collection
To address the objectives both primary and secondary source of data are utilized. But the main data
collection methods that are used are mainly focus on the primary source of data.
The primary data were collected through survey questionnaires and interview with the employees of the
organization.
The secondary data were collected through books, journals, articles and from website, annual and
quarterly report of the organization and other material found in the organizations library.

Sampling Techniques
The sampling method which was used was both stratified and simple random sampling. To remove and
to minimize the possible biasness the population of the study was stratified into five major target
groups based on the structure of the organization. And to select the respondents from each stratum
simple random sampling design was taken into consideration. To do so the existing employee list was
obtained from HR department of the organization then the weight was assigned to each stratum in order
to from the sampled data properly represent the population from which the stratified sample of existing
employee is drawn.

14
Sample Size:
The formula to calculate the sample size is

n = [N / { 1 + N *(e) ^ 2)}]
Where:
n = is the sample from the population
N = is the total population i.e. 311
E = is the error term, which is 5% (i.e. at 95% confidence interval)
Using the above formula the simple size of the study is determined as

n = [311 / {1 + 311 *(0.05) ^ 2)}]

= 174.964
= 175
Thus, the total sample size of the study was 175, which is 56% of the total population (175 /311= .563).
Table 1: Stratified Random Sampling Design
S.No

Types of Strata

Total Population

Sample size

1
2

BMHE
BMHS

89
98

(56% of population)
50
55

3
4
5

BMHG
P & YE
O & MS
TOTAL

74
18
32
311

41
10
18
175

Questionnaire development
The designed questionnaire includes three main parts;

Part one is aimed to collect data on Demographic Variables

Part two is aimed to collect data on Employees discernment of performance appraisal and,

Part three is aimed to collect data on the Employees work outcome

In the first part of the questionnaire, 4 questions are included about different demographic
characteristics of the respondents such as work experience, sex, age, division and departments.
15
The second and third part of the questionnaire consists of question to using five-point Likert Scale :

(1=strongly disagree, 2= Disagree, 3= Neutral, 4= agree and 5= strongly agree).

Thus, the respondents were requested to select their own choice of the five point Likert scale in order to
specify their own level of agreement or disagreement.
The second part of the questionnaire includes 9 closed- ended items aimed to measure the employees
perception of performance appraisal. On the other hand, the third part of the questionnaire includes 16
closed- ended items to measure the employees work out comes in the form of work performance,
affective commitment and turnover intention.
Therefore, the questionnaire includes a total of 29 items.

16

ANALYSIS

ANALYSIS
Demographic characteristics of Respondents
Table 2: Sex, Age, and Experience along with Department of
the employees
Demographic Factors

Frequency

Percentage

Male

118

67.4

Female

57

32.6

Total

175

100

<25

10

5.7

25-34

18

10.3

35-44

44

25.2

45-55

43

24.6

>55

60

34.2

Total

175

100

<2 years

10

5.7

2 - 4 years

40

22.8

5 9 years

58

33.2

10 and above

67

38.3

175

100

BMHE

50

28.6

BMHS

55

31.5

BMHG

42

24

P & YE

10

5.7

O & MS

18

10.2

1.

2.

3.

Sex

Age

Experience at TRF

Total
4.

Department

Total

175

100

As it is shown in table 2 above,

67.4 percent (n= 118) of the respondents were male. The remaining 32.6 percent (n = 57) of the
respondents were female.
Regarding to the age composition of the respondents, the largest number of the respondent 60 (34.2 %)
was in the age group of above 55 years; the second largest group 44 (25.2 %) those aged between 35 to
44 years, of the total respondents 43 (24.6 %) indicated that they were in the age group of 45 to 55
years whereas the second lowest proportion of the respondents 18 (10.3 %) were in the age group of
25-34 years and a very small proportion of the respondents 10 (5.7 %) were below 25 years.
Regarding to the experience of the respondents in the organization, the largest number of the
respondent 67 (38.3 %) was in the group of 10 and above years; the second largest group 58 (33.2 %)
those was in the group of 5 to 9 years , of the total respondents 40 (22.8 %) indicated that they were in
the group of 2 to 4 years and a very small proportion of the respondents 10 (5.7 %) were below 2 years.
Regarding to the department and divisions of the respondents, the largest number of the respondent
55(31.5 %) were in the department BMHS; the second largest group 50 (28.6 %) were in the
department BMHE, of the total respondents 42 (24%) indicated that they were in the department
BMHG whereas the second lowest proportion of the respondents 18 (10.2 %) were in the department O
& MS and a very small proportion of the respondents 10 (5.7 %) were in P & YE department.
Thus, the majority respondents of this were male with ages ranging above 55 years old and having and
experience of 10 years and above and in the department of BMHS.

19
Table 3: Employees discernment of the existing Performance Appraisal at TRF
S.No Questions used

Mean

Current performance appraisal is fair and unbiased

3.17

Performance appraisal process helps to find out about my

3.25

level of performance
3

Leader takes performance appraisal review discussion

2.81

seriously
4

I am satisfied with the way my organization provides you

2.925

the feedback
5

The feedback I receive agrees with what I have actually

2.94

achieved
6

The feedback I receive on how I do my job is highly

3.19

relevant
7

My organization is good at providing recognition for good

3.22

performers
8

My organization attempts to conduct performance appraisal

2.99

in the best possible way

9

Performance appraisal is valuable to me as well as to my

3.54

organization
TOTAL

3.115

As it is shown in table 3 above:

The mean of the first question is calculated by using the formula:
m = {n (1) + n (2) + n (3) + n (4) + n (5)} / 175
Where:

m = mean to be calculated
n = number of times the scale is chosen
Hence mean for first statement is:
m = {25 (1) + 33 (2) + 38 (3) + 45 (4) + 34(5)} / 175
= (555) / 175
3.17
Mean for second statement is:
m = 570 / 175
= 3.25
Mean for third statement is:
m = 491 / 175
= 2.81
Mean for fourth statement is:
m = 512 / 175
= 2. 925
Mean for fifth statement is:
m = 515 / 175
= 2.94
Mean for sixth statement is:
m = 558 / 175
= 3.19
Mean for seventh statement is:
m = 564 / 175

= 3.22
Mean for eighth statement is:
m = 524 / 175
= 2.99
Mean for ninth statement is:
m = 620 / 175
= 3.54
The mean score of the respondents for the level of PA satisfaction (discernment) for one items is high,
that is, PA is valuable to me as well as to my organization with a mean value of 3.54. Whereas, the
respondent level of PA satisfaction is moderate for two items, that is, (a) Appraisal process help me to
find out my level of performance with mean score of 3.25 and (b) Organization is good at providing
recognition with a mean score of 3.22 whereas the respondent level of PA satisfaction is moderate for
other two items also, that is, (a) The feedback I receive on how I do my job is highly relevant with
mean score of 3.19 and (b) Current performance appraisal is fair and unbiased with a mean score of
3.17.
However, the respondents level of PA satisfaction is low for the remaining four statements, that is, the
mean score ranged from a maximum of 2.99 to a minimum of 2.81 for My organization attempts to
conduct performance appraisal in the best possible way and My leader take your performance
appraisal review discussion seriously respectively.
The overall response for the nine items indicates the mean= 3.115. The higher the mean score, the more
that respondent agreed with the statement and vice versa. The mean score= 3.115 indicates that there is
high level of satisfaction towards the current performance appraisal practice, which implies, the
respondents are satisfied with the performance appraisal system of the TRF Limited.
Therefore, the remarked areas of low satisfaction are the good indicators and the root causes for
employees negative discernment regarding to the performance appraisal practice of their organization.
In turn, it might have its own impact on the employees work outcomes; in the form of work
performance, affective commitment & turn over intention too.

Thus, from the above result, it can be seen that employees performance appraisal satisfaction is low
with mean= 2.925. But, we can say that the employees have high level of discernment towards the
current performance appraisal practice.

23

Table 4: Employees level of Work Performance at TRF

S.No

Questions used

Mean

I often perform better than what can be expected

4.005

I always reach my performance target

3.97

Overall I am a good performer

4.085

I try to work as hard as possible

4.21

The quality of my work is superior

3.685

I often expend extra effort in carrying out my job

4.045

I intentionally expend extra effort in carrying out my job

4.045

TOTAL

4.0064

As it is shown in table 4 above:

The mean of the first question is calculated by using the formula:
m = {n (1) + n (2) + n (3) + n (4) + n (5)} / 175
Where:
m = mean to be calculated
n = number of times the scale is chosen
Hence mean for first statement is:
= 701 / 175
= 4.005
Mean for second statement is:
m = 696 / 175
= 3.97
Mean for third statement is:
m = 715 / 175
= 4.085

Mean for fourth statement is:

m = 738 / 175
= 4.21
Mean for fifth statement is:
m = 645 / 175
= 3.685
Mean for sixth statement is:
m = 708 / 175
= 4.045
Mean for seventh statement is:
m = 708 / 175
= 4.045
In order to know the working performance of individuals at TRF Limited, seven items about overall
work performance of employees were included in the questionnaire. As it is shown in table 4, out of the
seven item, the respondents level of work performance on four items are strong, which ranged with
mean from a maximum of 4.21, i.e. I try to work as hard as possible to minimum of 4.045 I often
expend extra effort in carrying out my job, I intentionally expend extra effort in carrying out my job.
The overall response indicates that employee level of work performance has mean= 4.0064 for the
seven items of work performance. The mean score= 4.0064 indicate that the work performance of
employees at TRF Limited is high.
25

Table 5: Employees level of work Affective Organizational Commitment at TRF

S.No

Questions used

Mean

I enjoy discussing about my organization with people outside

3.45

I really feel that the organizations problem are my own

3.86

This organization has a great personal meaning to me

3.52

I think I can become as attached to another organization as I am to this

3.80

organization

I would like to spend rest of your career in the same organization

2.92

TOTAL

3.51

As it is shown in table 5 above:

The mean of the first question is calculated by using the formula:
m = {n (1) + n (2) + n (3) + n (4) + n (5)} / 175
Where:
m = mean to be calculated
n = number of times the scale is chosen
Hence mean for first statement is:
= 604/ 175
= 3.45
Mean for second statement is:
m = 676/ 175
= 3.86
Mean for third statement is:
m = 616 / 175
= 3.52
Mean for fourth statement is:
m = 665 / 175
= 3.80

Mean for fifth statement is:

m = 511 / 175
= 2.92
In order to know the affective commitment of individuals at TRF, five items dealing with the overall
affective commitment of employees were included in the questionnaire. As it is shown in table 5, out of
the five item, the respondents level of affective commitment on two items are strong which is I really
feel that the organizations problem are my own with mean of 3.86 and I think I can become as
attached to another organization as I am to this organization with mean of 3.80.
Here, the respondent level of affective commitment is moderate for two items which are I enjoy
discussing about my organization with people outside with mean of 3.45 and This organization has a
great personal meaning to me with mean of 3.52.
However, the respondent level of affective commitment is low for the remaining one items, which is
I would like to spend rest of your career in the same organization with mean of 2.92
The overall response indicates that employee affective commitment has mean= 3.51 for the five items
of affective commitment. The mean score= 3.51 indicate that the affective commitment of employees at
TRF Limited is high.

27
Table 6: Employees level of work Turnover Intention at TRF
S.No

Questions used

Mean

I intend to leave the organization

3.63

I will probably look for a new job next year

3.84

I have a promising future in this organization

2.70

I do not see many prospects for the future in this organization

3.59

TOTAL

3.44

As it is shown in table 5 above:

The mean of the first question is calculated by using the formula:
m = {n (1) + n (2) + n (3) + n (4) + n (5)} / 175
Where:
m = mean to be calculated
n = number of times the scale is chosen
Hence mean for first statement is:
= 672/ 175
= 3.84
Mean for second statement is:
m = 635 / 175
= 3.63
Mean for third statement is:
m = 472/ 175
= 2.70
Mean for fourth statement is:
m = 628 / 175
= 3.59
In order to know the turnover intention of individuals at TRF, four items dealing with the overall
turnover intention of employees were included in the questionnaire. As it is shown in table 6, out of the

fourth item, the respondents level of turnover intention on one items is strong, with mean of 3.84, i.e. I
will probably look for a new job next year.
Here, the respondent level of turnover intention is moderate for two items which are I do not see many
prospects for the future in this organization with mean of 3.59 and I intend to leave the organization
with mean of 3.63
However, the respondent level of turnover intention is low for the remaining one items, which is
I have a promising future in this organization with mean of 2.70.
The overall response indicates that employee turnover intention has mean= 3.44 for the four items of
turnover intention. The mean score= 3.44 indicate that the turnover intention is moderate.

29

LIMITATIONS

LIMITATIONS
The limitations to the report were as follows:

Respondents might resist in providing their true feelings as a result conclusions of the findings

might be affected.
Lack of experience also affected the research work.
It is limited only to TRF Limited Burma mines Jamshedpur hence the generalization to all
branches is difficult.

31

CONCLUSIONS &
RECOMMENDATIONS

CONCLUSIONS
The basic objective of this report was to know the discernment of performance appraisal on employee
work outcomes, because performance appraisal has been a major issue with its impacts on the
employees work out comes, in the form of work performance, affective commitment and turn over
intention, which in turn, leads to the organizational performance. Thus, based on the finding of the
study the following conclusions are drawn:First, it was possible to present the employees discernment of the performance appraisal where the
employees express that they had high level of satisfaction with the performance appraisal system being
practiced by the organization with a mean value of 3.115. But it does not mean that they are completely
satisfied with the overall appraisal practice, that is, somewhat they are dissatisfied with the performance
appraisal system of the organization. The respondents had low level of satisfaction on the following
statements:

Leader takes performance appraisal review discussion seriously

Satisfied with the way organization provides the feedback

The feedback I receive agrees with what I have actually achieved

Organization attempts to conduct performance appraisal in the best possible way

Therefore, the above points are the main reasons for employees negative discernment on the
performance appraisal of the organization. This negative perception of employees towards performance
appraisal system has its own impact on the employees work outcomes. The employees discernment
towards PA can be made better through; Continuously recording the performance of employees, making
the appraisal system more participating & by communicating the result between raters and rate.
The employee work outcome shows that, employees of TRF Limited have high level of work
performance, high level of affective organizational commitment and moderate level of turn over
intention.
33
From the finding it can be conclude that employees of the organization are good in work performance,
but employee personal attachment, belonging to the organization, confidence on their organization,
intent to stay are the major factors influencing employee affective organizational commitment. Whereas
from the four items of turn over intention; employee promising future on their organization are the

major factor ;while future prospects on their organization, intend to leave and quitting their present job
are also factors that moderately influence employee intention to leave.
Second, it was possible to determine the relationship between employees discernment of performance
appraisal and their work outcomes, in the form of work performance, affective commitment and turn
over intention.
Thus, based on the result employees discernment of performance appraisal does not affect work
performance, affective organizational commitment and their turnover intention in TRF Limited.

34

RECOMMENDATIONS
On the basis of the findings and conclusions reached, the following recommendations are made in order
to change the perception of employees:

Appropriately file and document the performance of the employees on a continuous basis.

Making the appraisal system participatory so that employees should be allowed to see their
appraisal comment on it.

Design ways to communicate the results of the employees as well as the criteria against which
they are going to appraise the subordinates.

As mentioned in the conclusion, Employees of TRF Limited had low level of affective organizational
commitment as a result of personal attachment, belonging to the organization, intention to stay on their
organization. Therefore, to improve this organization should take steps such as:

Creating trust on the mind of employee about performance appraisal

Making organizational plans for the career and development of employee

In the conclusion part, employees of TRF Limited also had moderate level of turnover intention. But,
there is low level of mean in one item, i.e. in their promising future and had moderate level of mean in
two items i.e. future prospects in their organization and intent to leave. Therefore, the management and
HR personal should introduce better incentive, opportunity for internal growth and development,
transparent work communication system.

35

EXHIBITS

EXHIBITS
Questionnaire
There were total 5 functions/departments (BMHE, BMHS, BMHG, P & YE, O & MS) in which survey
was done. Then a questionnaire was prepared and data collection was done through:

Hard Copy/Offline Survey

Personal/ Telephonic Survey

After drafting the questionnaire, I got it verified with the mentor. Feedback from all the employees was
collected through various means like, employees personal interviews with senior officials & submitting
of responses in a hard copy. Further these responses were compiled and sent to the employees
controlling officers through similar mechanism of (offline & personal interviews) for their evaluation.
And finally a questionnaire was prepared which is as follows:-

Dear respondents;
The objective of the questionnaire is to collect information about THE EMPLOYEES DISCERNMENT
AND THE EFFECT OF PERFORMANCE APPRAISAL ON THEIR WORK OUTCOMES @ TRF
LIMITED. The information you provide will be valuable for academic Purpose.
Part 1: Demographic Information
1. Since how many years you have been working with TRF?
Below 2
2-5 years
5-10 years
Above 10 years
2. Sex

Male
Female

3. What is your age?

Under 25
25-34
35-44
45-54
55 and above
4. Division and Department (Kindly tick)
BMHE

(Works manufacturing, Works planning, Works maintenance, Erection &

Commissioning, Engineering + Office of CTO + Lib., IED, Office of Chief, Marketing +
ROs, SCM-stores, OED + Dispatch, Safety, Services)

BMHS
(Marketing, Project planning and monitoring, Project Sites: includes redeployment,
Office of COO BMH B, C&S engineering, Electrical engineering, System engineering,
Utilities engineering, Commissioning cell, Commercial)

BMHG
(Business development, Business excellence, Finance & Accounts, Human resource,
Internal Audit, ITS, Office of Company Secretary, Office of COO (BMH-B + VPs),
Office of COO (CS),Office of MD (Jamshedpur), Office of MD (Kolkata), P&A, QAD,
SHE (Safety, Health & Environment), SCM Proc.)

P & YE
(Electrical, Engineering, ITS, Finance & Accounts, Office of chief, Projects HO +
Sites)

O & MS
(HO + sites)

The second and third part of the questionnaire consists of question on five-point Scale:
(1=strongly disagree, 2= Disagree, 3= Neutral, 4= agree and 5= strongly agree).
Thus, the respondents are requested to select their own choice of scale in order to specify their own
level of agreement or disagreement.
Part 2: Employees discernment of performance appraisal
5. Current performance appraisal is fair and unbiased
1

6. Performance appraisal process helps me to find out about my level of performance

1

7. My leader take my performance appraisal review discussion seriously

1

8. I am satisfied with the way my organization provides me the feedback

1

9. The feedback I receive agrees with what I have actually achieved

1

10. The feedback I receive on how I do my job is highly relevant

1

11. My organization is good at providing recognition for good performers

1

12. My organization attempts to conduct performance appraisal in the best possible way
1

13. Performance appraisal is valuable to me as well as to my organization

1

38
Part 3: Employees work outcome
14. I often perform better than what can be expected
1

15. I always reach my performance target

1

16. Overall I am a good performer

1

17. I try to work as hard as possible

1

18. The quality of my work is superior

1

19. I often expend extra effort in carrying out my job

1

20. I intentionally expend extra effort in carrying out my job

1

21. I enjoy discussing about my organization with people outside

1

22. I really feel that the organizations problem are my own

1

23. This organization has a great personal meaning to me

1

24. I think I can become as attached to another organization as I am to this organization

25. I would like to spend rest of your career in the same organization
1

26. I intend to leave the organization

1

27. I will probably look for a new job next year

1

28. I have a promising future in this organization

1

29. I do not see many prospects for the future in this organization
1

REFERENCES

REFERENCES

www.wikipedia.org

www.trf.co.in

www.google.com

http://eprints.utar.edu.my/1024/1/BA-2013-1003216-1.pdf

http://www.researchpublish.com/download.php?file=THE%20EFFECT%20OF
%20EMPLOYEES%20FAIRNESS-453.pdf&act=book

http://studentjournal.petra.ac.id/index.php/ibm/article/download/2400/2180

http://www.arabianjbmr.com/pdfs/OM_VOL_3_(1)/4.pdf

http://www.theglobaljournals.com/ijar/file.php?val=February_2014_1392373752_d5a23_55.pdf

http://shodhganga.inflibnet.ac.in:8080/jspui/bitstream/10603/3705/13/13_chapter%203.pdf

Questionnaire Template (2013 TRF, 2014 TRF ), Performance Appraisal, KRA Sheet

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