FINAL REPORT

ON
MANAGEMENT THESIS

“Performance Appraisal - A study on HR practices at Aditya Birla

Group (Grasim Industries)”
 CERTIFICATE

This is to certify that the management thesis I titled “Performance

Appraisal- A study on HR practices at Aditya Birla Group (Grasim
Industries)” submitted by ___________ Alumni No.______________-during the
MBA program (class 2010) embodies original work done by her.

Signature of the faculty guide

Faculty member
Hyderabad

DECLARATION
I here by declare that the project work entitled “Performance Appraisal- A study on
HR practices at Aditya Birla Group (Grasim Industries)” for the academic year
SS 2008-2010 submitted to IIPM in partial fulfillment of the requirement for the award
of the “Master of Business Administration” is a bonafide work carried out by me under
the guidance of ______, guide, and this has not been submitted to IIPM or any other
university.

Place: Candidate signature

Date:
 ACKNOWLEDGEMENT

At the very outset, I would like to thank the lord for the supernatural
grace and mercies.
.

I wish to record my deep sense of gratitude to my guide,

_______________, HR, GRASIM INDUSTRIES for his valuable suggestions,
constructive comments and guidance to bring out this project successfully.

Finally it’s my pleasure to thank my parent and friends for their

continuous encouragement at every moment.
 CONTENETS

Abstract

1.1 Introduction

1.2 Objectives of the study

1.3 Discription of the problem

1.4 Justification of the problem

1.5 Research Methodology

II COMPANY PROFILE

III ORGANISATIONAL CHART

IV LITERATURE REVIEW

4.1 Literature Review-1

4.2 Literature Review-1

V ANALYSIS AND INTERPRETATION

VI FINDING AND SUGGESTION

VII CONCLUSION
 ABSTRACT

The purpose of this study was to determine the factors which the employees in the
organization preferring for their appraisal and the employees satisfaction with the existing
appraisal system. The results of the current study can be used by organizations to develop
policies, practices, and strategies regarding their appraisal system and can create greater
efficiencies in meeting strategic business objectives. Findings were made based on the
data collected from 150 employees with the aid of a questionnaire in which 5-point likert
scale and rating scale were employed. Most of the respondents rated both subjective and
objective measures as preferable. It was also found that some employees surveyed are
dissatisfied with their present organization appraisal methods and there are great chances
that they may leave their employer if they get better job opportunities from any better
employer. The employers must pay attention to this situation and design effective methods
as remedies at the earliest or else they may soon lose their efficient workforce.

Company Profile
Aditya Birla Group is India's first truly multinational corporation. The group has an annual
turnover of US$ 24 billion and has over 1,00,000 employees belonging to over 25 different
nationalities on its rolls.

Aditya Birla Group has its presence in 20 countries –

India, Thailand, Laos, Indonesia, Philippines, Egypt, Canada, Australia, China, USA, UK,
Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Malaysia and Korea.

Globally the Aditya Birla Group is:

• A metals powerhouse, among the world’s most cost-efficient aluminium and copper producers.
Hindalco, from its fold, is a Fortune 500 Company. It is also the largest aluminium rolling company
and one of the 3 biggest producers of primary aluminium in Asia.

In India:

• A premier branded garments player.

• The 2nd largest player in viscose filament yarn.

• The 2nd largest in the Chlor-alkali sector.

• Among the top 5 mobile telephony companies.

Hindalco:

It has established been in 1958, Hindalco deals in Aluminium and Copper and is an industry leader
in both. Hindalco is the world's largest aluminium rolling company and one of the biggest
producers of primary aluminium in Asia. Its copper smelter is today the world's largest custom
smelter at a single location. In 2007, Hindalco acquired Novelis and in the process became the
world's largest aluminium rolling company and one of the biggest producers of primary aluminium
in Asia, as well as India's leading copper producer.

Aditya Birla Nuvo: Aditya Birla Nuvo is a diversified business conglomerate with interests in
viscose filament yarn (VFY), carbon black, branded garments, fertilizers, textiles and insulators.
Aditya Birla Nuvo, through its subsidiaries and joint ventures has made forays into life insurance,
telecom, business process outsourcing (BPO), IT services, asset management and other financial
services.

Ultra Tech Cement: The Groups cement business is under both Grasim and UltraTech cement.
Together the two companies under the group account for a substantial share of the cement market
in India.

UltraTech cement comprises the erstwhile cement business of L&T which was acquired by the
 group.Ultra Tech Cement manufactures and markets Ordinary Portland Cement, Portland Blast
Furnace Slag Cement and Portland Pozzolana Cement. It is the country's largest exporter of
cement clinker. Its export market includes countries around the Indian Ocean, Africa, Europe and
the Middle East.

GRASIM INDUSTRIES LIMITED is the flagship company of Aditya Birla Group. Grasim itself is a
multi-product company with cement being the major area of focus. Now a day the cement division of
the Grasim industries Limited works under the banner of the Ultratech Cement limited (UTCL). In
August 1998, Grasim acquired the well-known Dharani Cements Ltd situated at Reddipalayam,
Perambalur District. Soon after the acquisition, Grasim embarked on a most prestigious project of one
million top capacity cement plant at the existing locations.

READY MIX CONCRETE

Concrete is a hardened building material created by combining a binder i.e. cement (commonly Portland
cement), aggregate (generally gravel and sand), water and admixtures. Although people commonly use
the word cement as a synonym for concrete, it is only one of several components in modern concrete.
As concrete dries, it acquires a stone-like consistency that makes it ideal for constructing roads, bridges,
water supply and sewage systems, factories, airports, railroads, waterways, mass transit systems.

Concrete is used more than any other man made material on the planet. It was in 1824, when Joseph
Aspdin and Isaac Charles Johnson refined synthetic cement that Portland cement came into existence.
However, it was not widely used until World War II, when several large docks and bridges were
constructed.

Today, different types of concrete are categorized according to their method of installation. Ready or
pre-mixed concrete is batched and mixed at a central plant before it is delivered to a site. This type of
concrete is sometimes transported in an agitator truck and is also known as transit-mixed concrete.
Shrink-mixed concrete is partially mixed at the central plant and its mixing is then completed en route to
the site.
The secret of good concrete lies in the degree of quality control and technical parameters of the mix.
UltraTech, the Aditya Birla Group Company, which makes good concrete better, maintains a high level
of precision in its quality assurance procedures and produces world-class concrete that comes in a
package of highly reliable durability, strength and performance.

The making of concrete is a science as well as an art. Science because the right proportions of all the
ingredients as per the standard Bureau of Indian Standards (BIS) code assures the desired strength and
durability. And an art because it is not just the accurate proportioning which determines the quality of
concrete, but the way it is mixed, placed, compacted, cured and protected also play a great role.

UltraTech Concrete makes good concrete better because the company takes extra care to make sure it is
perfect both ways — proportion wise and handling wise. To ensure quality, each and every sample of
concrete passes through stringent tests in fresh and hardened state to ensure strength, durability and
performance.

How does UltraTech Concrete make good concrete better?

Right from selecting the raw materials to batching and mixing, transportation, placing of concrete till
testing of concrete — UltraTech ensures flawless operation in every stage. Clearly, it's all about putting
together the right ingredients for that perfect recipe.

Cement
Fresh cement, protected from weathering conditions and influence of external environment such as air,
moisture etc., is an important ingredient of concrete. UltraTech Concrete plant uses fresh cement directly
procured from the cement plants through cement bulkers, which in turn pump it directly into the concrete
silos thus protecting it from the external environment.

Coarse aggregates
Coarse aggregates — free from clay, weeds and other organic materials, cubical or rounded with a
combination of different sizes and not elongated or flaky — ensure proper strength of the concrete and
make it non-porous. These coarse aggregates are a vital ingredient of good concrete. UltraTech Concrete
directly sources the aggregates from selected and approved suppliers, tested as per BIS for size, shape,
gradation, impact value and crushing value etc.

Fine aggregate
Sand, the fine aggregate used in concrete must be free from silt, clay, salts and organic materials to
prevent shrinkage cracks, which affect the concrete quality and durability.

UltraTech Concrete directly purchases sand from selected and approved suppliers tested for moisture
content. To maintain the correct water-cement ratio, UltraTech Concrete plants use moisture sensors and
an automatic water correction procedure.

Water:

Potable water, free from impurities such as oil, alkalies, acids, salts, sugar, organic materials is ideal for
concrete. UltraTech Concrete uses water tested at frequent intervals and uses water purifiers whenever
necessary.

Admixture
Admixtures used in concrete during mixing ensures its workability (the ease of placing of concrete in
moulds) and the setting time is carefully chosen from reputed companies. The workability is measured for
every batch through the slump cone and is controlled using a scientific method of dosing. UltraTech
Concrete is equipped with computerized batching and mixing plants to strictly monitor the quality of the
concrete. It uses a computerized recipe for the raw mix design (cement : sand : coarse aggregate : water :
admixture) and quantities of raw materials are weighed automatically as per the design mix. The water-
cement ratio, very important to satisfy the strength and durability criteria of concrete, is pre-designed
through a scientific mix design as per the BIS standards and kept constant throughout to maintain the
consistency in quality for a particular mix. Mixing is generally done through high efficiency pan mixers
(machine mixers / turbo mixer) to ensure uniform and consistent quality concrete.

Transportation
The transport of concrete from its place of mixing to the delivery point is very critical, as there is
possibility of the concrete drying out and losing its workability and plasticity.

UltraTech Concrete transports concrete from its ready mix concrete plants to the site through transit mixers.
Further, the concrete is pumped to the actual point of concreting using high efficiency concrete pumps, thus
maintaining the homogeneity of the concrete throughout the transit till the final deposition. Placing the
concrete is expedited scientifically by specialized delivery trucks. Qualified and experienced engineers
monitor the entire operation.

It is anchored by an extraordinary force of 100,000 employees, belonging to 25 different nationalities.

In India, the Group has been adjudged “The Best Employer in India and among the top 20 in Asia” by
the Hewitt-Economic Times and Wall Street Journal Study 2007. Over 50 per cent of its revenues
flow from its overseas operations.

Beyond business — the Aditya Birla Group is:

Working in 3,700 villages

Reaching out to seven million people annually through the Aditya Birla Centre for Community
Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla
Focusing on: health care, education, sustainable livelihood, infrastructure and espousing social
cause.
.

About Ultratech Cement Ltd

Ultratech Cement Ltd is having its own vision, mission and values.

Vision of the company:

To be a premium global conglomerate with a clear focus on each business.

Mission of the company:

To deliver superior value to the customers, shareholders, employees and society at large.

Values of the company:

People contribute when they relate to an organization and they relate, when they understand the
organization. People understand an organization through its values by experiencing the culture that values
create and by using the systems and processes that values define. In large organizations, such shared
understanding cannot be created through leadership of individuals alone; it requires leadership of principles,
of beliefs, of conviction. Integrity, Commitment, Passion Seamlessness, Speed. These together constitute
what they call their “Value”.

Organizational Chart

RMC Central
 Head
RMC

Head
Mktg & Head Head
Head Tech. Operatio Head Head Head
Sales
HR Service n F&C SCM Projects

Head
Head Head Head Head II Aggrega Head
Sales Mktg. O&M te Logistics

RMC HR
 Head HR
Recruitment
Specialist Zonal Co-
Org. ordinators
Development North/East/Wes
t/South

Poornat City HR/IR

Assistant a/MI S M S/P MS & Safety

Training
School
 CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION TO THE TOPIC

Performance appraisal is a method of evaluating the behaviour of employees in

the work spot, normally including both the quantitative and qualitative aspects of job
performance. It is a systematic and objective way of evaluating both work related
behaviour and potential of employees. It is a process that involves determining and
communicating to an employee how he or she is performing the job and ideally,
establishing a plan of improvement.

Performance appraisal has two over arching goals:

1. To encourage high levels of worker motivation and performance.

2. To provide accurate information to be used in managerial decision making.

These goals are interrelated because one of the principal ways that managers motivate
workers is by making decisions about how to distribute outcomes to match different
levels of performance.

Developing a Performance Appraisal System

Managers can use the information gained from performance appraisal for two main
purposes:

1. Developmental purposes such as determining how to motivate a worker to

perform at a high level, evaluating which of a worker's weaknesses can be
corrected by additional training, and helping a worker formulate appropriate
career goals.
2. Evaluative, decision-making purposes such as deciding whom to promote, how
to set pay levels, and how to assign tasks to individual workers.
Methods of Appraisal

The measures managers use to appraise performance can be of two types:

objective or subjective.

• Objective measures such as numerical counts are based on facts. They are
used primarily when results are the focus of Performance appraisal. The number
of televisions a factory worker assembles in a day, the dollar value of the sales a
salesperson makes in a week, the number of patients a physician treats in a day
and the return on capital, profit margin, and growth in income of a business are
all objective measures of performance.
• Subjective measures are based on individuals' perceptions, and can be used
for appraisals based on traits, behaviors, and results. Because subjective
measures are based on perceptions, they are vulnerable to many of the biases
and problems that can distort person perception. Because there is no alternative
to the use of subjective measures for many jobs, researchers and managers
have focused considerable attention on the best way to construct subjective
measures of performance.
• 360-degree appraisal - a worker's performance is evaluated by a variety of
people who are in a position to evaluate it. A 360-degree appraisal of a manager,
for example, may include evaluations made by peers, subordinates, superiors,
and clients or customers who are familiar with the manager's performance. The
manager would then receive feedback based on evaluations from each of these
sources. When 360- degree appraisals are used, managers have to be careful
that each evaluator is familiar with the performance of the individual he or she is
evaluating. While 360-degree appraisals can be used for many different kinds of
workers they are most commonly used for managers.
1.2 STATEMENT OF THE PROBLEM

The performance appraisal of the employees in the organization should be an

effective tool for measuring the employee’s performance. If the performance not
measured in a real manner it will be a critical issue. A study on impact of performance
appraisal was undertaken to study the reasons and ways to improve the condition.

1.3 OBJECTIVES OF THE STUDY

The present study on “impact of performance appraisal system” was undertaken

with the following objectives:

• To find whether the existing appraisal system in the organization exactly

measures the employee’s performance.
• To find whether the feedback from the appraisal system assists in the
employee’s training and development.
• To determine the gaps in the existing system.
• To determine what type of appraisal did the employee’s really looking for.
• To find is there is any opportunities provided for the employees to improve
their performance.

1.4 SCOPE OF THE STUDY

 The scope of the project is fully dependent upon the objectives of
the project.
• This study can be helpful to the company for conducting any
further research.
• The study is also helpful in finding out the respondent’s
opinion towards certain attributes.
• It is also helpful in finding out the reach and effectiveness of
the performance appraisal system.
• This study also serves as a base for understanding the
perception about the employees regarding their performance
appraisal.
• With the results of the study the company can improve their standards of
their appraisal system

1.5 HYPOTHESIS OF THE STUDY

The study includes the calculation of null hypothesis and alternative hypothesis
by comparing age group of the respondents and preference of the appraisal system.

Null hypothesis is used for testing. It is a statement that no difference exists

between the parameter and statistics being compared to it.

The alternative hypothesis is the logical opposite of the null hypothesis

1.6 LIMITATIONS OF THE STUDY

 • Time and resource were the major constraints during the execution of the
project. Therefore only a limited number of employees were included in
the project.
• The respondents were selected inside the organization only. So it cannot
be generalized as a whole.
• Some of the respondents were not even ready to spare time with the
researcher.
• There are many respondents who hesitated to answer the questionnaire.
• The human behaviour is dynamic and hence the results may not hold
good for a long time.
• The results of the survey are totally dependent on the accuracy and
authenticity of the information provided by the respondents.

1.7 CHAPTERIZATION OF THE PROJECT

The project done is being explained under five different chapters:

• Introduction
• Concepts and review
• Research methodology
• Data analysis and interpretations
• Results and Discussions
 CHAPTER 2

CONCEPTS AND REVIEW

2.1 CONCEPTS OF THE STUDY

2.1.1 Definition of Performance Appraisal

A formal and systematic process, by means of which the job relevant strength
and weakness of the employees are identified, observed, measured and developed.

2.1.2 Concept of Performance Appraisal

In the best of worlds, employees would love their jobs, like their co-
workers, work hard for their employees, get paid well for their work, have
ample chances for advancement, and flexible schedules so they could
attend to personal or family needs when necessary.

The performance appraisal is to assess a person and let him to

know where he is being standing along with the job. It is to find whether
he is performing with his task or not.

2.2 REVIEW OF RELATED LITERATURE

M Bowels and G Coates (1993)

The Management of Performance as Rhetoric on Reality

ARGUMENT:

Managers are mostly appraised by results, but results alone cannot

reflect performance because it is still affected by many other factors.
RESEARCH:

The problems faced by the organization experiencing some

difficulties were measuring performance and the extra demands made on
managers.

CONCLUSION:

Management should provide the enabling conditions through which

work is performed. Performance appraisal should be an opportunistic
means to address performance issues rather than a coherent systematic
process.

D Winstanely and K Stuart-Smith (1996)

RESEARCH:

 Conclusive evidence that leads to improved performance is

lacking.
 Not enough time is given to the process.
 It reinforces modes of intrusive control.

CONCLUSION:

The focus must move away from measurement and judgement

towards developing, understanding and building up trust to allow a
genuine dialogue to take place.

2.3 COMPANY PROFILE

Span systems a matured growing IT services company with 14 years of

experience. The company focussing on optimizing and aligning IT initiatives with
business strategies.
 The company has achieved a CMM level 4 and ISO 9001-2000 and expecting to
achieve CMM level 5. Sales offices at USA, Sweden and in India give the company for
easy access to global markets. The company have multiple development centres in
Bangalore and planned to expand their services to all over the India.

The business model deliver value through optimal use of offshore and onsite
resources and through managed relationships under the RM model. Clients get the
value through the pragmatic approach to an engagement rather than a cost based
model or a purely process driven model. Irrespective of activity with the clients the
company have demonstrable methods of showing enhanced productivity.

IT Infrastructure
• 15000 sq.ft. offshore It development facility
• 128 kbps dedicated 24*7 internet access with secure firewall protection.
• Intel Pentium 4/ windows 2000, sun Solaris and Intel based red Linux servers.
• 40+ workstations, TCP based 100/1000 MBPS Ethernet LAN on 100 MBPS
switches
• Complete data backup recovery infrastructure with disaster recovery facility
• In – house training facilities.

2.4 PRODUCT PROFILE

IT Services

Span systems are tailor- made to clients needs and built around the following
key areas relevant to any business enterprise:
 • Application development- customized software applications based on the
architecture constructed by our business consulting services.
• Business intelligence- productivity solutions that empower decision makers to
access data across the enterprise.
• Education and training- training and up gradation of skills in data modelling,
UML modelling, data ware housing and business intelligence for corporate.

Contracting

People, project and system recovery support. Span systems offers solutions that
are strategically aligned with corporate business goals. Span systems undertake
mobilization of personnel under placement at the client identified locations. On request,
or at the conclusion of the contract period, the deputed personnel are demobilised from
the client sites.

IT Expertise
• Operating systems: windows 98/2000/XP, Red Hat Linux and Sun Solaris.
• Development Tools: Visual Basic, Power Builder, Oracle Developer.
• Databases: Oracle, Sybase, SQL Server,DB2 and MySql
• UML Modelling tools: describe and rational rows.
• Data modelling tools: ER Studio, ER Win and power designer
• Groupware: Lotus notes/domino, MS exchange.
• Business intelligence: Oracle discoverer, business objects and congas.
• Data warehouse tools: DT Studio
• Web tools: Macro media dream weaver/flash and adobe Photoshop.
 CHAPTER 3

METHODOLOGY

3.1 INTRODUCTION

Research is a scientific and systematic search for pertinent information on a

specific topic. Research is an art of scientific investigation. According to Clifford Woody,
“Research comprises defining and redefining problems, formulating hypothesis or
suggested solutions, collecting, organizing and evaluating data, making deductions and
reaching conclusions and at last carefully testing the conclusions to determine whether
they fit the formulating hypothesis”.

3.2 RESEARCH DESIGN

Research design aids the researcher in the allocation of limited resources by

posing crucial choices in methodology.

Research design is the plan and structure of investigation so conceived as to

obtain answers to research questions. The plan is the over all scheme or program of the
research. It includes an outline of what the investigator will do from writing hypothesis
and their operational implications to the final analysis of data.

DESCRIPTIVE RESEARCH DESIGN

The design for this study is descriptive research design. This design
was chosen as it describes accurately the characteristics of a particular
system as well as the views held by individuals about the system. The
views and opinions of employees about the system help to study the
suitability of the system as well as the constraints that might restrict its
effectiveness
3.3 SAMPLING TECHNIQUES

The sampling technique adopted for the purpose of the study is

convenience sampling.

As the name implies a convenience sample means selecting

particular units of the universe to constitute a sample.

SAMPLE SIZE

The sample size of the study is 150. This sample is considered as

representative.

3.4 DATA COLLECTION

PRIMARY SOURCE:

The primary source of data is through Questionnaire.

SECONDARY SOURCE:

The secondary source of information is based on the various details

retrieved from Journals, Websites and Magazines.

The data for this study has been collected through primary sources. Primary data
for this study was collected with the help of Questionnaires and evaluation feedback
forms. The extra information was collected through interviews with the employees at
various companies.
3.5 TOOLS OF THE STUDY

3.5.1 Tool used for data collection:

The tool used for collecting the data is through the questionnaire.
The main reason for selecting the questionnaire method for the study is:
• Respondents have adequate time to give well thought out answers.
• The time of the study was also a limiting factor.
• Five pointer scales were use through the Questionnaire.

3.5.2 Statistical tools used

Statistical tools like Tabulation, Graphic Representations,

percentage analysis and, Chi-Square, are used in the compilation and
computation of data.

Chi-Square Test

The Chi-Square test is one of the simplest and most widely used non-parametric
test in statistical work. It is practically useful in tests involving nominal data. It can be
used for higher scales. It makes no assumptions about the population being sampled. If
Chi-Square is zero it means that the observed and the expected frequencies completely
coincide, while the greater the value of Chi-Square is , the greater would be the
discrepancy between observed and the expected frequencies.
The formula for computing Chi-Square is

CHI-SQUARE = (O-E)2 / E
Where O = Observed Frequency, E = Expected Frequency
The calculated value of chi-square is compared with the table value of chi-square
for given degrees of freedom of specified level of significance. If the calculated value of
chi-square is greater than the table value the difference between the theory and the
observed is considered to be significant, i.e., it could not have risen due to fluctuations
of simple sampling. On the other hand if the calculated value is less than the table
value, the difference between the theory and observation is not considered significant,
i.e., it could have risen due to fluctuations of sampling.

The number of degrees of freedom is described as the number of observations

that are free to vary after certain restrictions have been imposed on the data. For a
uniform distribution, we place one restriction on the expected distribution - the total of
sample observations.

PERCENTAGE ANALYSIS:

Percentage refers to a special kind of ratio. Percentage is used in

making comparison about two or more series of data. Percentage as also used to
describe relationship. It is also used to compare the relative terms of two or more
series of data.
Formula:
Number of respondents
× 100
Total no. of respondent
3.5.3 AREA OF THE STUDY

To study the Impact of Performance Appraisal System at SPAN Systems,

Bangalore.

3.5.4 CLOSED-ENDED QUESTIONS

Such questions are also called fixed alternative questions. This method is also
facilitators the respondent to answer in some other way on other alternative is provided
as a choice.

CHAPTER – 4

ANALYSIS AND INTERPRETATION

4.1 ANALYSIS OF THE DATA

Table 1

Table showing Sex of the respondents

sex no. of Simple

respondent percentage
s
Male 132 88
female 18 12
Source: Primary data

Inference

From the above table it is inferred that out of 50 respondents 88% of them are
male and 12% of the respondents are female.

Figure 1

sex of the respondents

100 88
90
80
e 70
g 60
a
t
n 50
e
c
r 40
e
p 30
20 12
10
0
male female Table 2
sex
 Table showing age group of the respondents

Age No. of Simple

group respondent percentage
s
19-23 15 10
24-28 42 28
29-33 27 18
34-38 27 18
Above 38 39 26

Source: Primary data

Inference

The above table shows that 28% of the respondents are between the ages 24-28,
26% of the respondents are above 38, 18% of the respondents are 29-33 and 34-38
and only 10% of the respondents are between the ages
19-23.

Figure 2

Table 3
 Table showing the date of joining of the respondents

Date of joining No of Simple

respondent percentage
s
71-80 03 02
81-90 15 10
91-2000 30 20
2001-07 102 68

Source: Primary data

Inference

The above table 68% of the respondents are joined during 2001-07, 20% of the
respondents are joined during 91-2000, 10% of the respondents are joined during 81-90
and 2% of the respondents are joined during 71-80.

Figure 3

date of joining

80 68
60
40 20 date of joining
20 2 10
0
- - - -
 Table 4

Table showing the preference of the appraisal

Preference No of Simple
of appraisal respondent percentage
s
Peers 15 10
Subordinates 21 14
Supervisors 114 76
Source: Primary data

Inference

The above table shows that 65% of the respondents prefer supervisors appraisal,
20% of the respondents prefer subordinates appraisal and remaining 10% of the
respondents prefer peers appraisal.

Figure 4

preference of appraisal

90
100
80
60 20.4 27.4
40 Preference of Appraisal
20
0
p
rs
e

o
s
r
sn
te
a

p
u
rv
e
s
rd
o
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u
s

i
i

Table 5
 Table showing the basis of the performance appraisal

No of Simple
Basis of respondent percentage
performance s
appraisal
Quality 18 12
Target 12 08
Both 120 80

Source: Primary data

Inference

The above table shows that 80% of the respondents prefer both the quality and
target for their basis of performance appraisal, 12% of the respondents prefer quality
alone and 8% of the respondents prefer target alone.

Figure 5

Table 6
 Table showing frequency of the appraisal system

Frequency No of Simple
of appraisal respondents percentage
Monthly 09 06
Half yearly 60 40
Annual 75 50
360 degree 06 04

Source: Primary data

Inference

From the above table shows that 50% of the respondents prefer annual
appraisal, 40% of the respondents prefer half yearly appraisal, 6% of the respondents
prefer monthly appraisal and 4% of the respondents prefer 360 degree appraisal.

Figure 6

Table 7
 Table showing performance appraisal

Performance No of Simple
appraisal respondent percentage
based on s
Personality 06 04
traits
Behaviour 09 06
Results 15 10
All the above 120 80

Source: Primary data

Inference

From the above table shows that 80% of the respondents prefer personality
traits, behaviour and results, 10% of the respondents prefer results alone, 6% of the
respondents prefer behaviour, 4% of the respondents prefer personality trait

Figure 7

Table 8
 Table showing types of appraisal

Types of No of Simple
appraisal respondent percentage
s
Subjective 18 12
Objective 18 12
Both 114 76

Source: Primary data

Inference

The above table shows that 76% of the respondents prefer both subjective and
objective factors, 12% of the respondents prefer subjective alone and 12% of the
respondents prefer objective alone.

Figure 8
 Table 9

Table showing any gender discrimination

Based on No of Simple
gender, any respondent percentage
discrimination s
Yes 48 32
No 102 68

Source: Primary data

Inference

The above table shows that 68% of the respondents said that there is no gender
discrimination and the remaining 32% said there is gender discrimination.

Figure 9

Table 10
 Table showing daily contact at the time of appraisal

Daily No of Simple
contact at respondents percentage
the time of
appraisal
SA 09 06
A 72 48
NC 30 20
D 33 22
SD 06 4

Source: Primary data

Inference

The above table that 48% of the respondents agree that they are having daily
contact, 22% of the respondents are having no comment, 20% of the respondents are
disagree with the daily contact, 3% of the respondents are strongly agree with the daily
contact and 2% of the respondents are strongly disagree with the daily contact.

Figure 10

Table 11
 Table showing feedback given at the time of appraisal

Feedback No of Simple
given at the respondent percentage
time of s
appraisal
SA 21 14
A 84 56
NC 30 20
D 12 08
SD 03 02

Source: Primary data

Inference

The above table shows that 56% of the respondents are agree with the feedback
given at the time of appraisal, 20% of the respondents given no comment, 8% of the
respondents are disagree with the feedback, 14% of the respondents are strongly agree
with the feedback and 2% of the respondents are strongly disagree with the feedback
given at the time of appraisal.

Figure 11
 Table 12

Table showing appraisal evaluates strength and weaknesses

Appraisal No of Simple
evaluates respondent percentage
strength and s
weaknesses
SA 36 24
A 63 42
NC 36 24
D 09 06
SD 06 04

Source: Primary data

Inference

The above table shows that 42% of the respondents agree with evaluating their
strength and weaknesses, 24% of the respondents are strongly agree with their
evaluation, 24% of the respondents given no comment based on their evaluation,6% of
the respondents are disagree with the evaluation and 4% of the respondents are
strongly disagree with the evaluation of strength and weaknesses.

Figure 12
 Table 13

Table showing exactly evaluates the skill gaps

Exactly evaluates the No of Simple

skill gaps respondent percentage
s
SA 15 10
A 84 56
NC 39 26
D 12 08
SD 00 00

Source: Primary data

Inference

The above table shows that 56% of the respondents are agree with evaluation of
skill gaps, 26% of the respondents given no comment, 10% of the respondents are
strongly agree with evaluation of skill gaps and 8% of the respondents are disagree with
the evaluation of the skill gaps.

Figure 13
 Table 14

Table showing is the organization providing effective training

Organizatio No of Simple
n providing respondent percentage
effective s
training

SA 36 24
A 48 32
NC 54 36
D 09 06
SD 03 02
Source: Primary data

Inference

The above table shows that 36% of the respondents given no comment regarding
effective training, 32% of the respondents are agree with the effective training, 24% of
the respondents are strongly agree with the effective training, 6% of the respondents
are disagree with the effective training and 2% of the respondents are strongly disagree
with the effective training.

Figure 14

Table 15
 Table shows is the appraisal helps in personal growth

Appraisal
helps in No of Simple
personal respondent percentage
growth s

SA 36 24
A 69 46
NC 39 26
D 06 04
SD 00 00

Source: Primary data

Inference

The table shows that 46% of the respondents are agree with their personal growth,
26% of the respondent’s given no comment, 24% of the respondents are strongly agree
with their personal growth and 4% of the respondents are disagree with their personal
growth.

Figure 15
 Table 16

Table shows appraisal helps in promotion aspects

Appraisal helps in No of Simple

promotion aspects respondent percentage
s
SA 45 30
A 81 54
NC 15 10
D 09 06
SD 00 00
Source: Primary
data

Inference

The table shows that 54% of the respondents are agree with the promotion aspects,
30% of the respondents are strongly agree, 10% of the respondents given no comment
and 6% of the respondents are disagree with the promotion aspects.

Figure 16
 Table 17

Table shows recommendation for job rotation

Recommendation No of Simple
for job rotation respondents percentage
Yes 120 80
No 30 20

Source: Primary data

Inference

The above table shows that 80% of the respondents recommended for their job
rotation and 20% of the respondents are not recommended the job rotation for their
development.

Chart 17
 Table 18

Table shows recommendation for job enlargement

Recommendatio No of Simple
n respondent percentage
For job s
enlargement
Yes 135 90
No 15 10

Source: Primary data

Inference

The above table shows that 90% of the respondents recommended for their job
enlargement and 10% of the respondents are not recommended the job enlargement for
their development.

Figure 18

recommendation for job

enlargement
Table 19
100 90 Table shows
80 ideas to
recommend
60 recommendation for their
40 for job enlargement

20 10
0
yes no

development
 Ideas to recommend No of Simple
for their development respondent percentage
s
Yes 30 20
No 120 80

Source: Primary data

Inference

The above table shows that 80% of the respondents recommended their ideas
for their development and 20% of the respondents are not recommended their ideas for
their development.

Figure 19

Ideas to recommend for their development

45
40
40
35
30
25 Ideas to recommend for
their development
20
15
10
10
5
0
yes no

Table 20

Table shows face to face interaction with the supervisor

 Face to face
interaction with No of Simple
supervisor respondent percentage
s

Yes 105 70

No 45 30

Source: Primary data

Inference

The above table shows that 70% of the respondents are agreeing with face to
face interaction with the supervisor and 30% of the respondents are not agree with the
face to face interaction with the supervisors.

Figure 20

Table 21

Table shows opportunities to improve performance

 Opportunities to No of Simple
improve performance respondent percentage
s
Yes 129 86

No 21 14

Source: Primary data

Inference

The above table shows that 86% of the respondents are agree with their
opportunities given by the organization and 14% of the respondents are not agree with
the opportunities given by the organization.

Figure 21

Opportunities to improve performance

Table 22

Table shows appraisal changes your attitude/behaviour

 Appraisal changes No of Simple
your Attitude respondent percentage
/Behaviour s
Yes 105 70

No 45 30

Source: Primary data

Inference

The above table shows that 70% of the respondents are agree with the changes
in attitude and behaviour ant the remaining 30% of the respondents are disagree with
the changes in attitude/behaviour during appraisal period.

Figure 22

Appraisal changes your

Attitude/Behaviour

80 70
70
60
50 Appraisal
40 30 changes your
30 attitude
20
10
0
yes no

Table 23

Table shows satisfied with CFR

 Satisfied with CFR No of Simple
respondent percentage
s
Yes 120 80

No 30 20

Source: Primary data

Inference

The above table shows that 80% of the respondents are satisfied with CFR
ratings and the remaining 20% of the respondents are dissatisfied.

Figure 23
 Table 24

Table shows increase of salary by performance ratings

Performance ratings increase No of Simple

your salary respondent percentage
s
Yes 117 78

No 33 22
Source: Primary data

Inference

The above table shows that 78% of the respondents are satisfied with the
increase of salary through performance ratings and the remaining 22% of the
respondents are dissatisfied.

Figure 24
 Table 25

Table shows happy with present appraisal system

Happy with No of Simple

present appraisal respondent percentage
s

Yes 114 76

No 36 24

Source: Primary data

Inference

The above table shows that 76% of the respondents are happy with the present
appraisal system and 24% of the respondents are unhappy with the present appraisal
system.

Figure 25
4.2 HYPOTHESIS TESTING

Chi-square test to find out the comparison between Age group of the
respondents and the preference of performance appraisal types.

SUBJECTIVE OBJECTIVE BOTH TOTAL

19-23 09 06 - 15
24-28 09 06 27 42
29-33 - - 27 27
34-38 - 06 21 27
Above 38 - - 39 39
TOTAL 18 18 114 150

Null Hypothesis

There is no relationship between Age group of the respondents and the

preference of performance appraisal types.

Alternative Hypothesis

There is relationship between Age group of the respondents and the

preference of performance appraisal types.

Level of Significance

5% level of significance

Test Statistics

X2 = (Oi- Ei)2
Ei
 Calculation

Oi Ei (Oi- Ei)2 (Oi- Ei)2/ Ei

9 1.8 51.84 28.8
6 1.8 17.64 9.8
0 11.4 129.96 11.4
9 5.04 15.68 3.11
6 5.04 0.9216 0.18
Inference 27 31.92 24.206 0.75
0 3.24 10.497 3.23
0 3.24 10.497 3.23
The 27 20.52 41.990 2.04
0 3.24 10.497 3.23
calculated value is 6 3.24 7.617 2.35
80.42 where as the 21 20.52 0.2304 0.011
0 4.68 21.902 4.67
tabulated value for 0 4.68 21.902 4.67
(r-1) (c-1) i.e., (5-1) 39 29.64 87.609 2.95
(3-1) for 5% level of 80.42
significance is 15.507. Thus calculated value is greater than the tabulated value. The
null hypothesis is rejected and the alternative hypothesis i.e., There is relationship
between Age group of the respondents and the preference of performance appraisal
types is accepted.

CHAPTER 5

5.1 FINDINGS OF THE STUDY

• 88% of the respondents were male.

• Majority of the respondents (28%) are between the age of 24-28 and the low
level (10%) was between the age of 19-23.
• 68% of the respondents are joined in the year of 2001-07 and the low level 2%
were joined in the year of 1971-80.
• 65% of the respondents prefer supervisors for their appraisal and the low level
10% prefer peers for their appraisal.
• 80% of the respondents prefer both the quality and target for their basis of
performance appraisal and low level 8% prefer target for their basis of
performance appraisal.
• 50% of the respondents prefer the frequency of appraisal as annual and the low
level 4% prefer 360 degree.
• 80% of the respondents prefer that performance appraisal should be based on
all(personality traits, behaviour and results) and the low level 4% prefer
personality traits.
• 76% of the respondents prefer both (subjective and objective) the appraisal and
the low level 12% prefer subjective and objective appraisal.
• 68% of the respondents said that there is no gender discrimination.
• 48% of the respondents are agree with daily contact at the time of appraisal and
the low level 2% were strongly disagree.
• 56% of the respondents are agree with feedback given at the time of appraisal
and the low level 2% were strongly disagree.
• 42% of the respondents are agree with evaluation of the strength and
weaknesses at the time of appraisal and the low level 4% were strongly disagree.
• 56% of the respondents are agree with evaluation of skill gaps and the low level
8% were disagree with this.
• 36% of the respondents having no comment based on effective training after
appraisal review and the low level 2% were strongly disagree.
• 46% of the respondents are agree with the personal growth of the individuals and
the low level 4% were disagree.
• 54% of the respondents are agree with the promotional aspects through
appraisal and the low level 6% were disagree.
• 80% of the respondents are recommended for job rotation.
 • 90% of the respondents are recommended for job enlargement.
• 20% of the respondents recommended some ideas for their development.
• 70% of the respondents are agreeing with the face to face interaction with the
supervisor.
• 86% of the respondents are agreeing with opportunities to improve their
performance after appraisal.
• 70% of the respondents are agreeing with the changes in attitude/behaviour after
appraisal.

• 80% of the respondents are satisfied with CFR ( critical factor ratings )
• 78% of the respondents are agreeing with increase in their salary through CFR
ratings.
• 76% of the respondents are happy with the present appraisal system.
• The chi-square analysis show that the comparison between the age of the
respondents and types of appraisal level calculated value of x2.

5.2 SUGGESTIONS

5.2.1 SUGGESTIONS BY THE EMPLOYEES

The organization should conduct the following programmes for their development
which are
• 3 Modelling software

• Seminars in some of the functional areas like

Technical aspects
Business overview
Latest technology

5.2.2 SUGGESTIONS BY THE RESEARCHER

• The company should conduct effective training after the performance

appraisal for their employees to improve their performance and also CFR
ratings should be discussed with the employees at the time of performance
appraisal review.
 • The company should give combination of both (subjective and objective)
appraisal and it should be of half yearly.

• The appraiser should keep on contact with the employees and motivate
them for their growth and also to achieve the organizational goals.

• When an employee is newly joined in an organisation, he/she should be

given proper information about performance appraisal system and its
impact towards his/her job.

• Once an employee is evaluated, he/she has to be informed about their

strength and weaknesses. An employee should aware of the above,
he/she will improve their strengths and weaknesses and also it helps to
increase the productivity of the organisation.

5.3 CONCLUSION

In this study, Performance Appraisal System followed at SPAN systems was

evaluated and found to be good. This project work also reveals the gaps in the existing
system. By providing suitable training and development programmes, the concern
organisation can improve the existing performance appraisal system.
 Overall, this project work helps to understand every aspects of performance
appraisal system.

REFERENCES

• VSP Rao – Human Resource Management, Anurag Jain for excel books, 2005
ninth edition.

• R. Kothari - Research Methodology Methods and Techniques, New age

international publishing, second edition.

• Donald R Cooper, Pamela S Schindler – Business Research Methods, Tata MC

Graw Hill, ninth edition.
 • Performance management – Michael Armstrong and Angela Baron.

• Gary Dessler – Human Resource Management Prentice, Half of Indian private

limited 2004 ninth edition.

• Website : www.spansystems.com

• Website : www.google.com

APPENDIX

IMPACT OF PERFORMANCE APPRAISAL SYSTEM

1. Name (optional) : ___________________

2. Sex : a) Male b) Female

3. Your age group?

a) 19 - 23 b) 24 - 28 c) 29 - 33 d) 34 – 38 e) above 38

4. Designation : ___________________

5. Date of joining : ___________________

6. Whose appraisal do you prefer?

a) Peers
b) Subordinates
c) Superiors

7. Performance appraisal should be based on your

a) Quality
b) Target
c) Both

8. The frequency of appraisal should be

a) Monthly
b) Half yearly
c) Annual
d) 360 degree

9. Appraiser appraised your performance based on

a) Personality traits
b) Behavior
c) Results
d) All the above

10. Which type of performance appraisal do you prefer?

 a) Subjective performance appraisal
b) Objective performance appraisal
c) Combination of both

11. Based on the gender, performance appraisal varies. Yes/No

The following questions are graded on a 5 point scale:

1 – Strongly agree
2 – Agree
3 – No comment
4 – Disagree
5 – Strongly disagree
1 2 3 4 5
12. During appraisal, the appraiser had daily contact with you.

13. During appraisal process, you are allowed to give feedback.

14. Do you think the performance appraisal evaluates your strengths

and weaknesses?

15. The appraiser exactly evaluated the skill gaps within you.

16. The organization is providing effective training program for skill

enhancement after your appraisal period.
17. Performance appraisal helps in your personal growth.

18. The appraisal system helps in your future promotion prospects.

19. Do you recommend job rotation for your development? Yes/No

20. Do you recommend job enlargement for your development? Yes/No

21. Do you have any ideas to recommend for your development? Yes/No

If yes, Please specify___________________________.

22. At the time of appraisal documentation review, did you have face to Yes/No
face interaction with your appraiser?

23. Were opportunities given to you to improve your performance? Yes/No

24. Does the performance appraisal review actually change your Yes/No
attitude / behaviour?
 25. Are you satisfied with the critical factor ratings? Yes/No

26. Based on the performance ratings, is there any increase in the salary? Yes/No

27. Are you happy with the present appraisal system? Yes/No

28. Do you have any comments on existing performance appraisal in your

Enterprise. Specify your suggestions.

This survey is only for educational purpose. Strict confidentiality will be maintained
and no details will ever be revealed to others.