PROJECT REPORT

ON
Performance Appraisal
Master of Business
Administration
Submitted By : Harmeet Kaur
(1436608)
Under Supervision of:
Ms. Shivani Grover
Ms. Amandeep Kaur

SRI SAI INSTITUTE,AMRITSAR

A SUMMER TRAINING
REPORT
ON

Performance Appraisal
AT

SUBMITTED TO:
SUMITTED BY:
SPORTKING SYNTHETICS
KAUR

HARMEET

MBA( 2nd SEM)

ROLL NO : 1436608
SRI SAI GROUP OF
INSTITUTE(AMRITSAR)

ACKNOWLEDGEMENT
Any work of this magnitude requires the inputs, efforts and encouragement of people from all sides. In
this project report, I have been fortunate having the active co-operation of many people, whom I would
like to thank.
I am heartily thankful to Mr. D.S.Yadav, Vice President (Prsnl. IR & Admn.) for giving me this
opportunity to do the project & Mr. Abhishek Sharma (Executive HR) for his valuable guidance and
helped me to refine my ideas and represent them in a better way in this project report.
I am very much thankful to SPORTKING SYNTHETICS, for providing me an opportunity to do my
project report in their unit.

HARMEET KAUR

Preface
Practical training play a vital role and it is an essential part of every professional programmed, it provides
an excellent opportunity to have a practical exposure of academic studies as what we have study in our
books in order to achieve practical, positive & concrete results.
Theoretical knowledge without practical knowledge is of little value. Theoretical study in classroom is not
sufficient to understand the functioning of complex and large sized organizations. Therefore, it becomes
necessary to undergo any project work.
The area of my study is Human Resource Management (PERFORMANCE APPRAISAL) in 6 to 8 weeks
training period in Sportking Synthetics. I have tried my best to cover each & every topic in this project.
I hope this report will fulfill the requirement for which it is asked to prepare.

HARMEET KAUR

TABLE OF CONTENTS

Seria

Contents

Page
No.

CHAPTER 1

1-17

l No.
1.
1.1

COMPANY PROFILE OF SPORTKING

1.2
1.3
1.4

INTRODUCTION TO SPORTKING SYNTHETIC

FAMOUS FOR
PRODUCT PROFILE OF SPORTKING

1.5

SYNTHETIC
TOP MANAGEMENT OF SPORTKING

1.6
1.7

SYNTHETICS
MAIN OBJECTIVES OF THE COMPANY
MISSION & VISION STATEMENT OF

1.8

SPORTKING SYNTHETICS
SWOT ANALYSIS OF SPORTKING
SYNTHETICS

2.

CHAPTER 2

18-21

2.1 PERFORMANCE APPRAISAL LITERATURE

REVIEW

3.

CHAPTER 3
3.1

HUMAN RESOURCE

3.2

INTRODUCTION

3.3

DEFINITION

3.4

FEATURES

3.5

TECHNIQUES/ METHODS OF

PERFORMANCE
APPRAISAL

22-41

1.1

COMPANY PROFILE OF SPORTKING

SPORTKING
SPORTKING is a well known brand in the Textile Industry & a vertically integrated Conglomerate,
having varied ventures in Yarns, Fabrics, Garments and Retail Business and Education through SIFT.
Years of relentless toil and dedication of the promoters and employees alike have brought the group to its
current glory. Today, under the experience and benevolent vision of Sh. Raj Awasthi: Group Chairman,
and the dynamism of his son Mr. Manish Awasthi: Managing Director,
Sportking launched exclusive online store. www.sportkingbrands.com

Some of the main units of Sportking:

Sportking Synthetics
Sportking industries
Sportking Processors
Marvell dying
Sobhagia sales Pvt. Ltd.
Classic wears

1.2 Introduction to Sportking Synthetics

8

Sportking Synthetics, a proprietorship concern of India Ltd., promoted by Shree Raj Kumar Awasthi,
established in f.y. 1995-96, engaged in business of manufacturing acrylic yarn from fibers. Sportking
Synthetics comprises of three units of production. It starts its operation with initial investment of Rs. 15
crore (approximately) and production capacity was 12000 spindles and it generate a turnover of Rs. 156
crore and profit after taxes Rs. 1.39 crore (approximately) company has market share of approx.. 8-10%.
Company is also availing the facility of sales tax exemption due to establishment of unit in rural area.
Establishment of Sportking Synthetics is due to increase the scale of operation
and to cater the requirement of Hosiery and to produce superior quality of dyed acrylic yarn at
competitive rates and thereby ensuring quality and cost competiveness.

Sportking Synthetics and Sportking India Pvt Ltd.s Products

Cotton Yarn(100% CH)

Polyester Yarn(100% P)
Acrylic yarn(ACY)
Polyester/cotton Yarn(P/C)
Acrylic/polyester Yarn(A/P)
Package Dyed Yarn
Cotton Combed Yarn
Organic Cotton
Waste

Markets: -60% international Market & 40 % Domestic Market

International markets

China
Bangladesh
Venezuela
Brazil
Colombia
9

Ethiopia
Hong Kong
China
Egypt
Tunisia
Iran
Ecuador
Argentina
Ethiopia
Taiwan

Domestic Market: -Major Buyer & 70 Retail outlets across india.

Pantaloon
Shoppers Stop
Lifestyle
Pepe Jeans
Max (Dubai and India)
Pyramid
Westside.

Competitors
Vardhman Textile
Oswal Textile
Aarti Textile
Business Philosophy
TO GROW

Quality policy
10

TO MEET THE COMMON PEOPLE NEEDS

Y a r n R e a d y m G r n ts

E d u c a t io n

1.3 FAMOUS FOR

Sportking Synthetics is famous for its yarn & Cotton worldwide. It is one of the oldest known fabric
manufacturers. It produces different kind of yarns like cotton yarn, Acrylic yarn, Acrylic polyester yarn,
Acrylic viscose yarn, Fancy yarn, Polyester cotton yarn etc. Acrylic yarn is replacing the use of woolen so
it is a big opportunity for Sportking to grow.
The M/s Sobhagia Sales Pvt. Ltd., Ludhiana and entered in retail garment
business.

1.4

PRODUCT

PROFILE

SYNTHETIC
Following are the product range of Sportking Synthetics:
11

OF

SPORTKING

Acrylic yarn (made up of acrylic fibers)

Acrylic polyester yarn (made from polyester blended acrylic polyester)
Acrylic viscose yarn (made up from blended acrylic and viscose)
Fancy yarn (made up from acrylic, polyester, viscose, cotton filament)
Polyester cotton yarn (made from blended and cotton yarn).

FAMOUS BRANDS IN GARMENTS RETAILING

1.5 TOP MANAGEMENT OF SPORTKING

SYNTHETICS
A companys success depends upon its top management and Sportking Synthetics top management is
described below:

Name

Designation

MR. RAJ KUMAR AVASTHI

Founder & chairman of company

MR. MUNISH AVASTHI

Managing Director

MR. NARESH JAIN

Executive Director

12

MR. ASHOK SHARMA

President (Production)

MR. RASHIM JINDAL

President (Mkg. & R. Mtrl.)

MR. P.K.GUPTA

Chief Finance Officer

MR. R.P. GUPTA

Executive Assistant To M.D

MR. D.S.YADAV

V.P. (Prsnl., IR & Admn.)

1.6 Main Objectives of the Company

The main objects of the company as set out in Memorandum & Articles of Association are as under:1. To acquire and take over the running business carried on in the name and style of Sportking Knitwears
along with the assets and liabilities on such terms and conditions as may be mutually agreed upon. The
said firm shall cease to exist after such take over.
2. To carry on the business, weavers, knitters, fabricators, manufacturers, processors, importers, exporters,
buyers, sellers of and dealers in all kind of yarns and fibers whether synthetic, artificial or natural, nylon,
polyester, acrylic rayon, silk, artificial silk, cotton, jute and any other fibrous material whether synthetic,
artificial or natural, textiles, allied products, by-products and substitutes for all or any of them and no treat
and utilize any waste arising from any such manufacturer.

1.7 MISSION & VISION STATEMENT OF SPORTKING

SYNTHETICS
We at Sportking Synthetics are committed to:
13

 Build and sustain an organization which is customer oriented, innovative and where quality is
hallmark of each operation.
Effectively meet customers requirement and to achieve their total satisfaction.
Create an environment which supports attainment of excellence through continual improvement in
all areas and distinguish ourselves by quality of our products.
Achieve operational effectiveness by attaining better productivity and profitability.
Do it right first time every time.
The policy shall be reviewed periodically to align with the business directions and to comply with
requirement of quality management standards.

1.8

SWOT

ANALYSIS

OF

SPORTKING

SYNTHETICS

STRENGTHS

WEAKNESSES

Establish brand name.

One of the oldest known

Fluctuation

in

the

international prices of the

fabric manufacturers.
Most experienced technical

integrants of acrylic fiber &

business cycle.
Less
advertisement

manpower.

14

brand.
Dont have
outlets.

enough

of
retail

OPPORTUNITIES

THREATS

Acrylic

Fluctuations in the prices of

yarn

has

been

replacing the use of woolen

yarn considerably.
Better utilization

can

raw material.
The
concern

be

is

facing

competition from existing &

made with machines.

Ludhiana accounts for more

upcoming

units

in

the

industry.
Change in the government

than 80% consumption of

acrylic yarn of India provides
a promising market for the

policies & business cycles.

Low
quality
cheaper
products

concern.

available

local market.

15

in

the

16

2.1 PERFORMANCE APPRAISAL LITERATURE REVIEW

The amount of research regarding the topic Performance Appraisal is so vast. The topic is literally not
new; it is as old as the formation of the organizations. Before the early 1980s, majority of theoretical
studies emphasized on revamping the rating system within the organization. The actions were a great
thing to reduce the chaotic of employees performance appraisal (Feldman, 1981). With the passage of the
time the methods and rating system among the employees got enhanced and received an immense
appreciation and attentions of the managers.
Behavioral Observation Scale (BOS) is one of the best techniques utilized by the managers to arte the
employees. The dilemma was on the peak in the 1960s and 1970s. In the same period couple of new
innovated rating scales were introduced, which was Behaviorally Anchored Rating Scale (BARS) and the
Mixed Standard Scale (MSS). The innovations were dominant one which condensed the errors and
improved the observation skills from the performance appraisal practice. According to the research of
Arvey and Murphy (1998), there were hundreds of thousands of researches had been taken place between
the periods of 1950 to 1980, which merely focused on the different types of rating scales. Landy and Farr
(1980) reviewed and researched the methods of performance appraisal in totally a different manner, in
which they understand the rater and process in an organizational context. Other Performance appraisal
reports include the rater characteristics in their report like race, gender and likeability.
After the year 1980 the biasness among the performance appraisal system occurred outrageously and
appraisal had been granted on the favoritism or race and gender basis rather examined the knowledge,
skills and style of the work of the employee. The accuracy criteria among the performance appraisal
system clutched its grip in the start of the 1980s, where the researches were emphasized on common
psychometric biases which include the diversified rating errors like leniency, central tendency and halo,
which were termed as rating errors in the appraisal method. It has been observed that the bias free
appraisals were inevitably true or more precisely we can say more accurate, but the concept was totally
refused by the research of Hulin in 1982. According to them the biasfree appraisals were not necessarily
accurate (Murphy & Balzer, 1989).
Researches which had been done in the year 1980 were found the most dominating one which contributed
the appraisal system in a great deal. The researches of the1980 also helped out to clarify some presumed
assumptions regarding the performance appraisal, just like the work of Murphy (1982). Research has
included the measure of employee attitudes towards the system of performance appraisal and its
acceptance (Roberts, 1990). Bernardian and Beatty (1984), suggested in their research that behavioral and
attitudinal kinds of measure ultimately prove to be better anticipator as compared with the traditional
psychometric variables, which we have declared earlier as in well, like leniency, halo and
discriminability. A Performance Appraisal system is totally ineffective practice due to the dearth
of approval from the end users (Roberts, 1990).

17

According to a number of researchers, the enhanced and upgraded performance appraisal procedure and
method will enhance the satisfaction level of the employees and definitely will improve the process of
goal setting within the organization.

References
Palmer, J.K. and Feldman, Jack M, Accountability and Need for Cognition Effects on Contrast, Halo,
and Accuracy in Performance Ratings, Journal of Psychology, 139 (2), 2005, 119-137

F. J. Landy, And Farr, J. L. Performance Rating, Psychological Bulletin, 87, 1980, 72-107
Murphy K.R. and Cleveland, J.N. Performance Appraisal: An Organizational Perspective, Boston: Allyn
and Bacon, 1991
Roberts G.E., The Influence of Participation, Goal Setting, Feedback and Acceptance on Measures of
Performance Appraisal -Effectiveness,, Dissertation Abstracts In-ternational (Doctoral dissertation,
University of Pittsburgh, 1990

18

19

3.1 HUMAN RESOURCE

Human Resources Management is a function in organizations designed to maximize employee
performance in service of their employers strategic objectives HR is primarily concerned with how
people are managed within organizations, focusing on policies and systems. HR departments and units in
organizations are typically responsible for a number of activities, including employee recruitment,
training and development, performance appraisal, and rewarding (e.g., managing pay and benefit
systems). HR is also concerned with industrial relations, that is, the balancing of organizational practices
with regulations arising from collective bargaining and governmental laws.
Human resource is very important for the success of any organization. It is source of strength and aid.
Human resource are the wealth of an organisation which can help it in achieving its goals. Human
resource management is concerned with the human beings in an organization. Human resource is the total
knowledge, ability, skills, talents and aptitudes of an organizations workforce.
A process consisting of the acquisition , development ,motivation and maintenance of human resource
David A. Decenzo and Steven P. Robbins.
Human resource management helps in managing people at work . it makes the better use of human
resource . it helps in development of individuals , it helps in planning managerial functions and carrying
out staff functions.
It is people oriented approach . it deals with every person working in the organization from top to bottom.
It tries to find out optimum arrangement between individuals , jobs, oranizations and environment.

20

RESEARCH
PROJECT
(Performance Appraisal)

3.2 INTRODUCTION
21

After an employee has been selected for a job, has been trained to do it and has worked on it for a long
period of time, his performance should be evaluated. Performance evaluation or appraisal is the process of
deciding how employees do their jobs. Performance here refers to the degree of accomplishment of the
tasks that make up an individuals job. It indicates how well an individual is fulfilling the job requirement.
Often the term is confused with efforts which means energy expanded used in a wrong sense.
Performance is always measured in term of results. A bank employee, for e.g. , may exert a great deal of
efforts while preparing the CAIIB examination but managers to get a poor grade. In this case the effort
expanded is high but performance is low.

3.3 DEFINATION
Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally
including both quantitative and qualitative aspects of the job performance. It is a systematic and objective
way of evaluating both work related behavior and potentials of employees. It is the process that involves
determining and communicating to an employee how he is performing the job ideally, establishing the
plan of improvement.

3.4

FEATURES

The main characteristics of performance appraisal may be

listed thus:

The appraisal is a systematic appraisal involving 3 steps:

Setting work standards.

Assessing employees actual performance relative to those standards.
Offering feedback to the employee so that he can eliminate deficiencies and improve performance
in course of time.
It tries to find out how well the employee is performing the job and tries to establish a plan for
further improvement.
The appraisal is carried out periodically, according to a definite plan. It is certainly not a shot
deal.
Performance appraisal is not a past oriented activity, with intention of
putting poor performance in a spot.
Performance appraisal is not a job evaluation. Performance appraisal refers to how well someone
is to doing an assigned job.
Performance appraisal is not limited to calling the fouls. Its focus is on employed development
it forces to manager to become coaches rather than judges.
Performance appraisal may be formal or informal. The Informal evaluation is more likely to be
subjective and influence by personal factors.
22

3.5 TECHNIQUES/METHODS OF PERFORMANCE

APPRAISALS
Numerous methods have been devised to measure the quantity and quality of performance appraisals.
Each of the methods is effective for some purposes for some organizations only. None should be
dismissed or accepted as appropriate except as they relate to the particular needs of the organization or an
employee.
Broadly all methods of appraisals can be divided into two different categories.

Past Oriented Methods

Future Oriented Methods

3.5.1 Past Oriented Methods

1. Rating Scales: Rating scales consists of several numerical scales representing job related
performance criterions such as dependability, initiative, output, attendance, attitude etc. Each scales
ranges from excellent to poor. The total numerical scores are computed and final conclusions are derived.
Advantages Adaptability, easy to use, low cost, every type of job can be evaluated, large number of
employees covered, no formal training required. Disadvantages Raters biases

2. Checklist:

Under this method, checklist of statements of traits of employee in the form of Yes
or No based questions is prepared. Here the rater only does the reporting or checking and HR department
does the actual evaluation. Advantages economy, ease of administration, limited training required,
standardization. Disadvantages Raters biases, use of improper weighs by HR, does not allow rater to
give relative ratings

3. Forced Choice Method:

The series of statements arranged in the blocks of two or more

are given and the rater indicates which statement is true or false. The rater is forced to make a choice. HR
department does actual assessment. Advantages Absence of personal biases because of forced choice.
Disadvantages Statements may be wrongly framed.

4. Forced Distribution Method:

Here employees are clustered around a high point on a

rating scale. Rater is compelled to distribute the employees on all points on the scale. It is assumed that
the performance is conformed to normal distribution. Advantages Eliminates Disadvantages
Assumption of normal distribution, unrealistic, errors of central tendency.

5.Critical Incidents Method: The approach is focused on certain critical behaviors of

employee that makes all the difference in the performance. Supervisors as and when they occur record
such incidents. Advantages Evaluations are based on actual job behaviors, ratings are supported by
descriptions, feedback is easy, reduces recency biases, chances of subordinate improvement are high.
Disadvantages Negative incidents can be prioritized, forgetting incidents, overly close supervision;
feedback may be too much and may appear to be punishment.

23

6.Behaviorally Anchored Rating Scales:

statements of effective and ineffective

behaviors determine the points. They are said to be behaviorally anchored. The rater is supposed to say,
which behavior describes the employee performance. Advantages helps overcome rating errors.
Disadvantages Suffers from distortions inherent in most rating techniques.

7.Field Review Method:

This is an appraisal done by someone outside employees own

department usually from corporate or HR department. Advantages Useful for managerial level
promotions, when comparable information is needed, Disadvantages Outsider is generally not familiar
with employees work environment, Observation of actual behaviors not possible.

8.Performance Tests & Observations:

This is based on the test of knowledge or

skills. The tests may be written or an actual presentation of skills. Tests must be reliable and validated to
be useful. Advantage Tests may be apt to measure potential more than actual performance.
Disadvantages Tests may suffer if costs of test development or administration are high.

9.Confidential Records:

Mostly used by government departments, however its application

in industry is not ruled out. Here the report is given in the form of Annual Confidentiality Report (ACR)
and may record ratings with respect to following items; attendance, self expression, team work,
leadership, initiative, technical ability, reasoning ability, originality and resourcefulness etc. The system is
highly secretive and confidential. Feedback to the assessee is given only in case of an adverse entry.
Disadvantage is that it is highly subjective and ratings can be manipulated because the evaluations are
linked to HR actions like promotions etc.

10.Essay Method:

In this method the rater writes down the employee description in detail
within a number of broad categories like, overall impression of performance, promote ability of
employee, existing capabilities and qualifications of performing jobs, strengths and weaknesses and
training needs of the employee. Advantage It is extremely useful in filing information gaps about the
employees that often occur in a better-structured checklist. Disadvantages It its highly dependent upon
the writing skills of rater and most of them are not good writers. They may get confused success depends
on the memory power of raters.

11.Cost Accounting Method:

Here performance is evaluated from the monetary returns

yields to his or her organization. Cost to keep employee, and benefit the organization derives is
ascertained. Hence it is more dependent upon cost and benefit analysis.

12.Comparative Evaluation Method (Ranking & Paired

Comparisons): These are collection of different methods that compare performance with that of
other co-workers. The usual techniques used may be ranking methods and paired comparison method.

24

Ranking Methods:

Superior ranks his worker based on merit, from best to worst.

However how best and why best are not elaborated in this method. It is easy to administer and
explanation.

Paired Comparison Methods:

In this method each employee is rated with

another employee in the form of pairs. The number of comparisons may be calculated with the help of a
formula as under.
N x (N-1) / 2

3.5.2 Future Oriented Methods

1.Management by Objectives: It means management by objectives and the performance

is rated against the achievement of objectives stated by the management. MBO process goes as under.
Establish goals and desired outcomes for each subordinate
Setting performance standards
Comparison of actual goals with goals attained by the employee
Establish new goals and new strategies for goals not achieved in previous year.
Advantage It is more useful for managerial positions.
Disadvantages Not applicable to all jobs, allocation of merit pay may result in setting short-term goals
rather than important and long-term goals etc.

2. Psychological Appraisals:

These appraisals are more directed to assess employees

potential for future performance rather than the past one. It is done in the form of in-depth interviews,
psychological tests, and discussion with supervisors and review of other evaluations. It is more focused on
employees emotional, intellectual, and motivational and other personal characteristics affecting his
performance. This approach is slow and costly and may be useful for bright young members who may
have considerable potential. However quality of these appraisals largely depends upon the skills of
psychologists who perform the evaluation.

3.Assessment Centers:

This technique was first developed in USA and UK in 1943. An

assessment center is a central location where managers may come together to have their participation in
job related exercises evaluated by trained observers. It is more focused on observation of behaviors across
a series of select exercises or work samples. Assesses are requested to participate in in-basket exercises,
work groups, computer simulations, role playing and other similar activities which require same attributes
for successful performance in actual job. The characteristics assessed in assessment center can be
assertiveness, persuasive ability, communicating ability, planning and organizational ability, self
confidence, resistance to stress, energy level, decision making, sensitivity to feelings, administrative
ability, creativity and mental alertness etc. Disadvantages Costs of employees traveling and lodging,
psychologists, ratings strongly influenced by assessees inter-personal skills. Solid performers may feel
suffocated in simulated situations. Those who are not selected for this also may get affected.
25

Advantages

well-conducted assessment center can achieve better forecasts of future

performance and progress than other methods of appraisals. Also reliability, content validity and
predictive ability are said to be high in assessment centers. The tests also make sure that the wrong people
are not hired or promoted. Finally it clearly defines the criteria for selection and promotion.

4. 360-Degree Feedback:

It is a technique which is systematic collection of performance

data on an individual group, derived from a number of stakeholders like immediate supervisors, team
members, customers, peers and self. In fact anyone who has useful information on how an employee does
a job may be one of the appraisers. This technique is highly useful in terms of broader perspective, greater
self-development and multi-source feedback is useful. 360-degree appraisals are useful to measure interpersonal skills, customer satisfaction and team building skills. However on the negative side, receiving
feedback from multiple sources can be intimidating, threatening etc. Multiple raters may be less adept at
providing balanced and objective feedback.

3.6 ESSENTIALS OF AN EFFECTIVE

PERFORMANCE APPRAISAL SYSTEM
To be effective, a performance appraisal system should satisfy the following requirements:

Mutual trust: An atmosphere of mutual trust and confidence should be created in the
organization before introducing the appraisal system. Such an atmosphere is necessary for frank
discussion of appraisal. It also helps to obtain the faith of employees in the appraisal system.

Clear objectives:

the objectives and uses of performance appraisal should be made

clear and specific. The objectives should be relevant, timely and open. The appraisal system
should be fair so that it is beneficial to both the individual employee and the organization. The
system should be adequately and appropriately linked with other sub systems of human
resource management.

Standardization: well-defined performance factors and criteria should be developed.

These factors as well as appraisal forms, procedures and techniques should be standardized. It
will help to ensure uniformity and comparison of ratings. Employees should be made fully
aware of performance standards and should be involved in setting standards.

Job Relatedness:Evaluators should focus attention on job-related behaviour and performance of

employees. In order to focus attention on behaviour under the employee's control, raters must become
familiar with the observed behaviour. It is also necessary to prepare a checklist so as to obtain and review
26

job performance related information. Ratings should be tied up with actual performance of units under the
rater's control.

Training:

Evaluators should be given proper training in philosophy and techniques of appraisal.

They should be provided with the knowledge and skills in documenting appraisals, conducting post
appraisal interviews, rating errors, etc.

3.7 Performance Appraisal - Process

A performance appraisal, or performance review, is a formal interaction between an employee and her
manager. This is when the performance of the employee is assessed and discussed in thorough detail, with
the manager communicating the weaknesses and strengths observed in the employee and also identifying
opportunities for the employee to develop professionally.
Here is the process involved in performance appraisal

Setting Performance
Standards

Taking Corrective
action

Communicating
Standards

Discussing
Results

Measuring
Performance

Comparing with Standards

1. Establishing Performance Standards

In this we use as the base to compare the actual performance of the employees. In this step it requires to
set the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of
27

their contribution to the organizational goals and objectives. The standards set should be clear, easily
understandable and in measurable terms. If employee doesn't come up to expectance, then it should be
taken extra care for it. In this process an employee has been provided an opportunity to do the appraisal
by himself. Employee has given a format of self-appraisal to fill according to his judgment about himself,
to put his / her strengths, weaknesses, any required training or any type of help from his / her superiors.

2. Communicating the standards

It is the responsibility of the management to communicate the standards to all the employees of the
organization. The employees should be informed and the standards should be clearly explained. This will
help them to understand their roles and to know what exactly is expected from them. Every employee has
different profiles and strengths which his / her superior need to find out and use those strengths for
fulfilling the goals of the organization. Managers communicate with the employees individually to get
their feedback and to clear their any doubts or problems. Managers let them know about their
performance and what company really requires from them to do. Standards are maintained and every
employee has to keep them on the marks.

3. Measuring the actual Performance

The most difficult part of the performance appraisal process is measuring the actual performance of the
employees that is the work done by the employees during the specified period of time. Superiors need to
calculate employees performance fairly. It is a nonstop process which involves monitors the performance
all over the year. This stage requires the watchful selection of the suitable techniques of measurement,
taking care that individual bias does not affect the outcome of the process and providing assistance rather
than interfering in an employees work. In this process the supervisor of the employee will check the filled
self appraisal form of employee and mark his / her performance average and standards. It is all depends
on the yearly monitored performance of the employee, which will be evaluated according to the
questionnaires formats.
Employees have their goals and profile on which they have to perform as per the expectations of the
organization, they need to raise their abilities and give output genuinely.

4. Comparing the Actual with the Desired Performance

In this the actual performance is compared with the desired or the standard performance. The comparison
tells the deviations in the performance of the employees from the standards set. The result can show the
actual performance being more than the desired performance or, the actual performance being less than
the desired performance depicting a negative deviation in the organizational performance. It includes
recalling, evaluating and analysis of data related to the employees' performance. At this stage the manager
/ supervisor will fill individually performance appraisal form of every employee, generates the actual
performance of the employee by feeding their feedback about employee. The format of the performance
appraisal has been made with the questions which create the genuine profile of the employee i.e. about his
working, techniques, skills, abilities, strengths, completion of tasks given to him etc. The measured
28

standard throughout the year will be formatted in the appraisal by manager / superior. The manager
compares the performance and ability of the employee at this stage with the goals and tasks given to him.

5. Discussing Results
The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The
focus of this discussion is on communication and listening. The results, the problems and the possible
solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be
given with a positive attitude as this can have an effect on the employees' future performance. The
purpose of the meeting should be to solve the problems faced and motivate the employees to perform
better. A manager creates new tasks for the employee individually and evaluate standard of the future
goals as per the current performance of the employee. The findings of weakness and strengths of
employee will help manager to check the need of trainings for employee or to give new challenging tasks
to the employee. This stage will help to create training calendar as per the needs of the employees, by
which the mentioned trainings will be provided throughout the year to them.

6. Decision Making
The last step of the process is to take decisions which can be taken either to improve the performance of
the employees by providing them different type of trainings, to take the required corrective actions, or the
related HR decisions like rewards, promotions, demotions, transfers etc. The whole process of appraisal
will help the superiors to find out the best employees and to raise the abilities of non-performing
employees. The organizations like Sportking always tries to raise the performance standards of their
employees and not to change and recruit new one at his / her place. The new tasks and goals will be
decided for future planning and the further steps will be taken to improve the strengths and performance
of employees.

3.8 OBJECTIVES OF PERFORMANCE APPRAISAL

To assess the work of employees in relation to job requirements.

To consider employees for promotion , transfers , layoffs etc.

To assess the good and bad points un working of employees and then making suggestions for

improvement.
To help in wages and salary administration and considering pay increases and increments.
To evaluate skill and training capabilities of employees and helping in planning suitable
training and development programmes.
To know the problem faced by employees while doing various jobs.
To provide a basis for comparison to segregate efficient and inefficient employees.
To help management in fixing employees according to their capacity, interest , aptitude and
qualifications.
To help supervisors to know their subordinates more closely for increasing their efficiency.
29

3.9 SCOPE OF PERFORMANCE APPRAISAL

Performance appraisal is an important output that employees work for organization.

It comprises of extrinsic and intrinsic factors and helps to maintain able and willing work forces.
It is an interesting and significant area for conducting research.
The study made on the topic of Performance appraisal will reveal the factor of feelings of

employees.
This report is useful to the management of the company to know the satisfaction level of

employees and they can take measures to increase productivity.

This report may be useful for the management students for reading, and may be useful in
preparing their report on Performance appraisal.

30

31

4.1 RESEARCH METHODOLOGY

1. SCOPE OF STUDY
The scope of my study is limited to the employees of Sportking Synthetics Ltd. The study is based on the
collection of primary data. It is viewed that this is one man survey to be completed within a limited period
of time and limited resources. The present study is restricted to the employees for Sportking Synthetics
Ltd.

2.

RESEARCH DESIGN

Research design describes the layout for carrying on the research. The study is descriptive, as it
describes the state of affairs as it exists at present and there is no control over variable factors.

3. SAMPLE DESIGN
A sample set of 50 workers from 1200 workers are chosen for study. The sample design for present
study is random sampling. All the workers of Sportking Synthetics have given equal chance of being
selected.

SAMPLE POPULATION:
There are totally 3,000 employees working in the organization.

SAMPLE SIZE:
Out of the total strength of the sample taken amongst workers. i.e. 50 respondents.

SAMPLE AREA:
The research was conducted within the area of Sportking.

SAMPLE METHOD:
The research was made by the survey in accordance to the convenience of the employees. So the sample
type is convenient sampling.

3.COLLECTION OF DATA
32

An under designed and structured questionnaire was prepared for collection of information from the
workers. The objective of the study was finding the workers performance, so for this purpose graphic
rating, bar diagrams was used. In all 10-15 questions were asked to workers to check their level of
performance. The questionnaire was containing questions based on efficiency,effectiveness, training
facilities and relationship with top management and many more. To less educated workers, I ask questions
to them and in their answer I filled the questionnaire in their behalf.

DATA SOURCES
PRIMARY DATA: The primary data was collected from the respondents by administering a structured
questionnaire and also through observation, interview and discussion with management.

SECONDARY DATA: Apart from primary data collected, the data collected through text books,
journals, the record of Sportking, academic reports and internet is used for study.

3.PRETESTING OF QUESTIONNAIRE
Before carrying out the actual survey the questionnaire was pretested on one employee. The purpose of
pretesting was to expose the weakness of questionnaire like wrong ordering of questions, repeated
questions, weak stimulation of response etc.

4. DATA ANALYSIS AND INTERPRETATION

After collection of data through questionnaire, then check list, graphic and rating scale methods are used
to analyze the data. Single statistical technique of percentage is also used. Percentage technique and
tabular form is used to analyze the questions.

TOOLS USED FOR ANALYSIS

CONTACT INSTRUMENT:
A structured close ended questionnaire is used and the type of questions are dichotomous and likert
scale.

CONTACT METHOD:
33

The research was conducted by using contact instruments like Questionnaire, interview and observation.
The information was collected from both the plant workers as well as from management staff.

DATA ANALYSIS TECHNIQUE:

The data is analyzed through simple analysis technique. The data tool is percentage method.

5.HYPOTHESIS TESTING

There is no significant relationship between gender and level of performance.

There is no significant relationship between designation and level of performance.
There is no significant relationship between age and level of performance.
There is no significant relationship between experience (no. of years of service) in the company
and level of performance.

6.LIMITATIONS OF STUDY
No study is perfect at all. Certain limitations are faced in every study. This study is also suffers from
the following limitations, which should be taken into consideration while utilizing the findings:

Due to the limitation of time the research could not be made more detailed.
Due to confidentiality of some information, accurate response was not revealed.
Some of the replies of the respondents may be biased.
This study is only limited to this company.
The method of random sampling is suitable for small populations only.
To create good image, respondents may give responses vary from the facts.

34

35

5.1 DATA ANALYSIS AND INTERPRETATION

1: Which methods are applicable in your organization?

Respondents Percentage
Critical Methods

0%

Simple Ranking Method

75

75%

Man to Man Comparison

25

25%

Check List

0%

Grading

0%

Graphic rating scale

0%

Free from essay

0%

36

Interpretation
As per the above given chart, most of the employees in SPORTKING say that simple ranking
methods are followed.

2:

In your opinion, performance is evaluated on the basis of:

Respondents

Percentage

Innovativeness

55

55%

Cost Reduction Method

20

20%

37

Problem solving ability

20

20%

Ability to handle diverse

5%

situations

60

50

40

30

Respondents (%)

20

10

38

Interpretation
As per the chart given above, most of the employees in SPORTKING say that performances appraisal is
done on the basis of innovativeness. Very less number of the employees in SPORTKING says that
performance is evaluated on the basis of ability to handle diverse situations.

3:Is self appraisal is necessary for you :

No

35

35%

Always

20

20%

39

50

45

40

35

30

25

20

15

10

0
Yes

No

Always

Interpretation
As per the chart given above, most of the employees in SPORTKING say that self appraisal is necessary
for them and 35% are not agree with this statement and 20% are strongly satisfied with this statement.

4:Do you agree that performance is sometimes and in some

cases

measured by only one of the characteristics of an employee?

Respondents
40

Percentage

Strong agree

20

20%

Agree

30

30%

Neither agree nor disagree

8%

Disagree

32

32%

Strongly Disagree

10

10%

41

35

30

25

20

15

10

0
Strongly Agree

Agree

Neither agree nor disagree Disagree

Strongly Disagree

Interpretation
As per the chart given above, 32% of the employees in SPORTKING "Disagree" that their performance is
evaluated on the basis of single characteristic.

5: Performance reviews should be based upon:

42

Respondents

Percentage

Opinions of managers

20

20%

Employees self appraisal

50

50%

Perception of other
employee

10

10%

Actual events and

observations

20

20%

43

60

50

40

30

20
Respondents (%)
10

Interpretation
As per the chart given above, most of the employees in SPORTKING say that performance reviews are
based upon the employee's self appraisal. 20% of the employees in SPORTKING say that performance
reviews are based upon the opinion of the managers.

6: Which of the following is the most commonly found at the top

of the list of factors that motivate employee performance:

44

Respondents

Percentage

Benefits

30

30%

Compensation

45

45%

Work environment

15

15%

Clear Objectives

10

10%

45

50
45
40
35
30
25
Respondents (%)

20
15
10
5
0

Interpretation
As per the above given chart, Most of the employees in SPORTKING say that they consider
compensation" as the top most factor that motivate employee performance.

7: What are the causes that can lead to poor work performance?

Respondent

Percentag

46

Lack of training provided by

30

30%

employer
Personal problem of an employee
Inadequate skills of an employee

20
40

20%
40%

All (a), (b) and (c)

10

10%

None of these

0%

45
40
35
30
25
20
15
10
5
0

47

Interpretation
As per the chart given above, 40% of the employees in SPORTKING feel that cause that lead to
poor performance is inadequate skills of an employee.

8: Do you get regular feedback with respect to the performance

of the work allotted?

Respondents

Percentage

Yes

45

45%

No

35

35%

Always

20

20%

48

50
45
40
35
30
25
20
15
10
5
0
Yes

No

49

Always

Interpretation
As per the chart given above, most of the employees in SPORTKING feel that they get regular
feedback of the work allotted to them.

9: When performance is evaluated in your organization?

Respondents

Percentage

Monthly

0%

Quarterly

0%

Half yearly

0%

100

100%

Yearly

50

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Monthly

Quarterly

Half-Yearly

Yearly

Interpretation
As per the chart given above, all the employees in SPORTKING says that their performance is evaluated
yearly.

10: Do you agree that performance appraisal feedback helps in

Knowing about strengths and weaknesses of an employee?

Strongly Agree
Agree

Respondents
20
35
51

Percentage
20%
35%

Neither agree nor disagree

Disagree
Strongly Disagree

15
20
10

15%
20%
10%

40
35
30
25
20
15
10
5
0

Interpretation
As per the chart given above, most of the employees in SPORTKING agree that feedback helps
in knowing about strength and weakness of an employee.

11: Is there any biasness in evaluation of performance done by

your supervisors?
Respondents

52

Percentage

Strongly Agree

45

45%

Agree

15

15%

Neither agree nor disagree

20

20%

Disagree

10

10%

Strongly Disagree

10

10%

50
45
40
35
30
25
20
15
10
5
0
Strongly agree

Agree

nether agree nor disagree

disagree

Strongly disagree

Interpretation
As per the chart given above, most of the employees in SPORTKING strongly agree that there is any
biasness in evaluating the performance of the employees.
53

12: An unsatisfactory rated employee should be:

Respondents Percentage

Transparent

20

20%

Separated

40

40%

Given proper training

25

25%

Demoted

10

10%

Should not be taken care of

5%

54

45
40
35
30
25
20
15
10
5
0

Interpretation
As per the chart given above, 25% of the employees in SPORTKING feel that an unsatisfactory
employee should be separated and 40% of the employee feel that an unsatisfactory employees should be
given proper training.

13: Do you feel that performance appraisal system is helpful?

Respondents

55

Percentage

Yes

65

65%

No

35

35%

Cant Say

0%

70

60

50

40

30

20

10

0
Yes

No

Interpretation

56

Can't Say

As per the chart given above, maximum numbers of the employees in SPORTKING feel that
performance appraisal system is very helpful and 35% of the employees in SPORTKING feel that
performance appraisal is not helpful.

14: Do you agree that adequate time is spent in identifying key

Performance areas and gaining role clarity in your Plant?
Respondents Percentage
Strongly Agree

20

20%

Agree

22

22%

Neither Agree nor Disagree

30

30%

Disagree

18

18%

Strongly Disagree

10

10%

57

35

30

25

20

15

10

58

Interpretation
As per the chart given above, most of the employees in SPORTKING neither agree nor disagree that
spending of time in identifying key performance areas and gaining role clarity.

59

s
60

6.1 FINDINGS OF THE STUDY

After the interpretation of the data and information obtained from the employees, it is true that
performance appraisal process is considered very important. The various findings of the study are as
follows:
1. In SPORTKING; most of the employees say that simple ranking method is applicable to evaluate
the performance.
2. Most of the employees in the Plant say that tendency of the supervisors is always to rate all
employees "low" but very less number of employees in the Plant say that tendency of the
supervisors is to rate all employees "high".
3. Most of the employees in SPORTKING "disagree" that performance is measured by considering
only one characteristic.
4. In the Plant, most of the employees say that performance reviews should be based upon employee
self-appraisal.
5. In SPORTKING, most of the employees consider "compensation" as top most factor that motivate
employee performance.
6. Most of the employees in the Plant "disagree" that performance appraisal improves performance
and most of the employees in the Plant " strongly agree" that performance appraisal helps in
identifying training needs
7. Most of the employees in the Plant say that cause that can lead to poor performance is inadequate
skills of an employee.
8. Most of the employees in the Plant agree that they get regular feedback of the work allotted to
them.
9. Most of the employees in the Plant say that continuous" type of feedback is effective.
10. Most of the employees in SPORTKING strongly agree" that there is always biasness in
evaluation of performance.

61

6.2 CONCLUSION
At the end we can conclude that performance appraisal system plays a very important role for both
supervisors and employees. People are considered as the most important asset for an organization and
their good performance of the work allotted to them can lead the organization to achieve maximum
benefits and if poorly done can lead to maximum losses. So, performance appraisal system helps the
employees to know about their strengths and weaknesses and proper training is provided to correct those
weaknesses. Performance appraisal describes each and every single aspect of an employee performance so
as to reach at desired results.

6.3 SUGGESTIONS
62

Though performance appraisal plays a very important role for both the supervisors and the
subordinates still certain recommendations are necessary which are as follows: 1. The supervisors should try to analyze strengths and weaknesses of an employee and advise him on
correcting the weaknesses..
2. Tendency of the supervisors must be to rate the employees by considering their all qualities
thoroughly so that he is capable of meeting the challenges about the ratings of his subordinates.
3. Supervisors must not consider single characteristic for the whole appraisal of performance of an
employee. The results of the performance rather than personality traits should be given due weight
age.
4. Supervisors should not be partial while evaluating the performance. So, it must be the true
indicator of employee performance.
5. Superiors must hold a meeting with each and every employee so as to discuss employee's
performance and then superiors must give an opportunity to the employees to comment if they
feel that appraisal is inaccurate.
6. Supervisors must set specific goals to accomplish for employees, they must be measurable and
attainable because too many goals may cause confusion and may lead to causes.

63

ANNEXURE
QUESTIONNAIRE
(PERFORMANCE APPRAISAL)
DEPTT:

_________________________________

Gender:
Age
1:

2:

Male

Female

_________________________________
Which methods are applicable in your organization?
a)

Critical incidents

b)

Simple ranking method

c)

Man-to-man comparison

d)

Check-list

e)

Grading

f)

Graphic rating method

g)

Free from essay

In your opinion, performance is evaluated on the basis of:

a)

Innovativeness
64

b)

Cost-reduction measures

c)

Problem-solving ability

d)

Ability to handle diverse situations

3: Is self appraisal is necessary for you?

4:

a)

Yes

b)

No

c)

Always

Do you agree that performance is sometimes and in some

cases measured by only one of the characteristics of an
employee?

5:

a)

Strongly agree

b)

Agree

c)

Neither agree nor disagree

d)

Disagree

e)

Strongly disagree

Performance reviews should be based upon:

a)

Opinions of managers

b)

Employee' s self appraisal

65

6:

c)

Perception of other employees

d)

Actual events and observations

Which of the following is the most commonly found at the

top of the list of factors that motivate employee
performance:

7:

8:

a)

Benefits

b)

Compensation

c)

Work environment

d)

Clear objectives

What are the causes that can lead to poor work performance?
a)

Lack of training provided by employer

b)

Personal problems of an employee

c)

Inadequate skills of an employee

d)

Both (a), (b) and (c)

e)

None of these

Do you get regular feedback with respect to the performance

of the work allotted?
a)

Yes
66

9:

b)

No

c)

Always

When performance is evaluated in your organization ?

a)

Monthly

b)

Quartly

c)

Half yearly

d)
10:

Yearly

Do you agree that performance appraisal feedback helps in

Knowing About strengths and weaknesses of an employee?

11:

a)

Strongly agree

b)

Agree

c)

Neither agree nor disagree

d)

Disagree

e)

Strongly disagree

Is there any biasness in evaluation of performance done by

your supervisors?
a)

Strongly agree

b)

Agree
67

c)

Neither agree nor disagree

d)

Disagree

e)

Strongly disagree

12: An unsatisfactory rated employee should be:

a)

Transparent

b)

Separated

c)

Given proper training

d)

Demoted

e)

Should not be taken care of

13: Do you feel that performance appraisal system is helpful?

14:

a)

Yes

b)

No

c)

Cant say

Do you agree that adequate time is spent in identifying key

Performance areas and gaining role clarity in your Plant?
a)

Strongly agree

b)

Agree
68

c)

Neither agree nor disagree

d)

Disagree

e)

Strongly disagree

69

BIBLIOGRAPHY
Udai Pareek, t. Venkateswara Rao; Designing and managing human resource systems; Second
edition: Oxford and IBH Publishing Co.

Pvt. Ltd.

Bhaskar Chatterjee; Executive guide to human resource management; Excel Books.

N.K. Singh; Human resource management; Excel Books.
S.B. Mamoria and S.V. Gankar; Personnel management; Publishing House.
Biswajeet Pattanayak; Human resource management; Prentice- Hall of India pvt. Ltd.
S.K. Bhatia and Nirmal Singh; Principles and techniques of personnel management/ Human
resource management; Deep & Deep publications Pvt. Ltd.
Sites: www.answer.com
www.performanceappraisal.com
www.mhn.inc.in

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71