Beruflich Dokumente
Kultur Dokumente
INTRODUCTION
guiding and managing career development. It is the process of obtaining, analyzing, and
recording information about the relative worth of an employee’s recent successes and failure,
personal strengths and weakness, and suitability for promotion or further training. It is also the
judgment of an employee’s performance in job based on considered other that productivity alone.
The other terms used for performance appraisal are: performance rating, employee
employee evaluation and (perhaps, the oldest of the terms used) merit rating.
Definition:
1
Process of performance appraisal:
Measuring performance
Discussing result
Collective active
In this very first step in performance appraisal, the HR department decides the
standards of the performance i.e. they decide what exactly is expected from the employee for
each and every job. Sometimes certain marking scheme may be adopted.
Standards of performance appraisal decided in First step are now conveyed to the
employees so that the employee will know what is expected from him and will be able to
Measuring performance
methods can be used to measure performance i.e. traditional and modern method. The method
The performance of the employee is now judged against the standard. To understand the
score achieved by him. Accordingly we come to know which category of performance the
employee falls into i.e. excellent, very good, good, satisfactory etc.
3
Discussing result
The result obtained by the employee after performance appraisals are informed or
employee asking him to change certain aspects of his performance and improve them.
Collective action
The employee is given a chance or opportunity to improve himself in the areas specified
be done from time to time to check whether any change in policy is required. Necessary changes
The following are some of the limitations of performance appraisal systems. They are as follows:
Halo effect
In this case the superior appraises the performance on certain positive qualities only. The
negative traits are not considered. Such an appraisal will not give a true picture about the
employee. And in some cases employees who do not deserve promotions may get it.
4
Horn effect
In this case only the negative qualities of the employee are considered and based on this
appraisal is done. This again will not help the organization because such appraisal may not
his performance. It identifies the areas for improvement so that employee can improve itself.
Due to performance appraisal it is easy to understand what type of training is required for
Performance appraisal provides a report about the employee, Based on this report future
5
4. Validation of selection process:-
Through performance appraisal the HR department can identify whether any changes are
required in the selection process of the company normally a sound selection process results in
Employee with specific talent can be transferred to places where their talents are utilized
appraisal reports.
Companies can plan for future vacancies at higher levels based on performance appraisal
reports. Similarly career planning can be done for the employee on the performance appraisal
report.
individual’s performance in a systematic way, the performance being measured against such
factors as job knowledge, quality and quantity of output, initiative, leadership abilities,
supervision, dependability, co-operation, judgment, versatility, health and the like. Assessment
should not be confined to past performance alone. Potentials of the employees for future
6
Objectives of the performance appraisal
Data relating to performance assessment of employees are recorded, stored, and used for
To decide upon a pay raise where (as in the unorganized sector) regular pay scales have
To let the employees know where they stand insofar as their performance is concerned
and to assist them with constructive criticism and guidance for the purpose of their
development.
The objectives of performance appraisal, listed above, point out the purpose which such
an exercise seeks to meet. What needs emphasis is that performance evaluations contribute to
firm’s competitiveness strength. Besides encouraging high levels of performance, the evaluation
system helps identify employees with potential, reward performance equitably and determine
7
Improving
performance
Strategy and
behavior Making
correct
Decisions
Competitive
Advantage
Minimizing
Dissatisfaction
and Turnover
8
How performance Appraisal can Contributes to firm’s Competitive
Advantage
Improving performance
As stated above, appraisal is a critical input in making decision on such issues as pay
raise, promotion, transfer, discharges and completion of probationary periods. Right decision on
each of these can contribute to competitive strength of a firm. If promotion, for example, is made
Promotions made on factors other than performance might land up a firm in a legal battle,
Companies can minimise costly performance-related litigation by using appraisal systems that
Dissatisfaction in the job sets in and one of the outcomes of job dissatisfaction is increased
turnover. Fair and accurate appraisal results in high motivation and increased job satisfaction. An
organization having satisfied and motivated employees will have an edge over its competitors.
9
Methods of Appraisal
measure the quantity and quality of employee’s job performance. Each of the methods discussed
could be effective for some purposes, for some organization. None should be dismissed or
accepted as appropriate except as they relate to the particular needs of the organization or of a
10
Rating Scales
This is the simplest and most popular technique for appraising employee performance.
The typical rating-scale system consists of several numerical scales, each representing a job-
related performance criterion such as dependability, initiative, output, attendance, attitude, co-
operation, and the like. Each scale ranges from excellent to poor. The rater checks the
appropriate performance level on each criterion, then computes the employee’s total
Checklist
Under this method, a checklist of statements on the traits of the employee and his or her
job is prepared two columns-viz., a ‘yes’ column and a ‘No’ column. All that the rater
(immediate superior) should do is tick the ‘yes’ column if the answer to the statement is positive
In this, the tater is given a series of statement about an employee. These statements are
arranged in blocks of two or more, and the tater indicates which statement is most or least
11
CHAPTER- II
COMPANY PROFILE
12
13
14
15
16
17
18
19
20
21
22
23
CHAPTER - III
Review of Literature
“A PAS is a partnership between the employee and the rating official in personal
development. Preparing a PAS involves open feedback, clarification and discussion about
developmental needs, goals and plans. Intermittent communication with the manager and
Archer North. “Benefits of Performance Appraisals.” 2003. Retrieved March 17, 2004.
“Some experts in human resources or management say that performance reviews are a waste
of time.
Mani, B.G. 2002, summer, “Performance appraisal systems, productivity, and motivation: A
case study”, Public Personnel Management vol. 31, no.2, pp. 141-159.
This dissertation sets out to review and explain the challenge of performance management
and how this is addressed through the performance appraisal process within Liverpool Direct
Revenues Service.
Performance appraisal systems aim to evaluate the job performance of employees, so that
appropriate corrective action and management decisions can be taken. As performance appraisal
24
is part of organizational control, the components of the control system are indispensable in the
appraisal system.
In general, basic control system consists of control standards, measurement, and corrective
actions. Among these three phases, control standards are based primarily on organizational
missions or departmental goals, which reflect the role a performance appraisal plays in the
organization.
specialists. For decades, performance appraisal has received considered attention in the
Maintain that there is a considerable gap between theory and practice, and that human
resource specialists are not making full use of the psychometric tools available. To support their
claim, these authors cite surveys of practitioners concerning current performance appraisal
Hypothesized that managers responding to the legal constraints prevaient in the 1980s,
preferred techniques that were defensible in court. Accordingly, managers tended to be satisfied
with the objective traditional approaches, whereas their subordinates seemed to prefer the
25
Bernardin and Klatt 1985
That small firms tended to rely heavily on trait-based approaches, while larger firms relied on
a combination of trait, behavioral, and results,-based techniques. They noted that one in five
organizations did not give employees the opportunity to review the performance appraisal
results.
Identified graphic rating scales (57.1%), the open - ended essay (21.3%), and Management-
by-Objectives (18.1%) as the most popular performance appraisal techniques. Unlike Taylor and
Zawacki (1984) before them, Locher and Teel identified a trend toward the use of MBO as a
popular technique.
Besides recording current trends in methods used, only a few researchers have clarified how
performance appraisal data is used. Report that performance information is most likely to be
used for employee development or to administer merit pay. They identified the main
employee potential and aiding employee counseling. Other common administrative uses
26
Clevenland, Murphy, and Williams 1989
Warned that organizations should exercise caution when using the same performance
appraisal methods for multiple applications, since different performance appraisal methods may
27
CHAPTER- IV
RESEARCH METHODOLOGY
Knowledge”.
In the world of Slesinger and Stephenson, “Research is the manipulation of things, concept
or symbols for purpose of generalizing to extend, correct or verify Knowledge he whether that
The search for Knowledge thought objective and systematic method of finding a proper and
In this chapter, the methodology followed in conducting the research has been described.
Details regarding the research design, data collection questionnaire, sampling plan, area of the
study and statistical tools used have also been given. Finally the Limitations of the study have
Research Design
Research design is purely and simply the framework or plan for a study that guides the
collection and analysis of the data. The research design indicates the methods of research i.e. the
28
Essentials of a research design:
Objectives:
2. To identify the factors which are influencing more the performance appraisal of
employees.
Data Collection
Data refer to the facts, figures, or information collected for a specific purpose.
Primary Data
Secondary Data
Primary Data
Primary data are those which are new and original is nature. These data are the first hand
29
Secondary data
Secondary data are those data which are not new and original in nature. These data are
In this study, primary data were collected by conducting direct structured interview using
questionnaire. All the employees were asked the same questions in the same form and they were
Research instrument
schedule consisting of number of coherent questions related to the various aspects of the topic
under this study. Therefore, the data required the study was collected through a questionnaire.
The Data collected through such filled-in questionnaire sample size, sampling method.
Sampling unit
The survey was conducted from the TUBE CRAFT, B14,15 PIPDIC INDUSTRIAL
ESTATE, METTUPALAYAM, PONDICHERRY. In this, there are nearly 500 employees are
Sampling method
For this study the samples were drawn using random sample method.
30
Random sampling or probability sampling is based on the theory of probability. This
Sampling size
Sample size of the study that are selected from the sampling unit. Total estimated sample
size is 50. For this study, the data collected through questionnaires have been tabulated. By using
the statistical tools, the data have been analysed. Interpretations have been drawn based on the
analysis. The findings are observations are the result and outcome of the interpretations made
Tables and figures have been used wherever necessary to facilitate the analysis and
interpretation Explanations for the tables were given for the tables wherever necessary. The
research report contains finding of facts, analysis of the facts, interpretations, conclusion and
recommendations.
Percentage Method: Percentages are ratios which are highly useful when comparing
two or more series of data. They are used for describing relationships & comparing distributions.
No of Respondents
Percentage = ----------------------------------- x 100
Total No of Respondents
31
CHAPTER – V
TABLE - 1
Cumulative
Age Frequency Percent
Percent
40 – 50 9 18.0 20.0
25 – 40 31 62.0 82.0
Below 25 9 18.0
100
Total 50 100
Inference:
The result exhibits that out of 50 employees, 2.0% of them are above 50 years,
18.0% of them are 40-50 years, 62.0% of them are 25-40 years and 18.0% of them are below 25
32
Figure 1
33
TABLE - 2
Cumulative
Gender Frequency Percent
Percent
Female 14 28.0
100
Total 50 100
Inference:
The result exhibits that out of 50 employees, 72.0% of them are male and 28.0% of them
34
Figure 2
35
TABLE - 3
Educational Cumulative
qualification Frequency Percent Percent
Others 4 8.0
Inference:
The result exhibits that out of 50 employees, 28.0% of them are post graduates, 58.0% of
them are graduates, 6.0% of them are higher secondary and 8.0% of them are other qualification.
36
Figure 3
37
TABLE - 4
Inference:
The result exhibits that out of 50 employees, 10.0% of them are above 15 years, 16.0% of
them are 10-15 years, 50.0% of them are 5-10 years and 24.0% of them are below 5 years of
38
Figure 4
Experience of the respondents.
39
TABLE - 5
Inference:
The result exhibits that out of 50 employees, 50.0% of them are getting as monthly salary
of 10000-15000, 40.0% of them are 5000-10000, 10.0% of them are having their income below
40
Figure 5
Income of the respondents.
41
TABLE - 6
Cumulative
Respondent Frequency Percent
Percent
Yearly 7 14.0
100
Total 50 100
Inference:
The result exhibits that out of 50 employees, 50.0% of them are said the performance
appraisal system is being conducted in the factory are weekly, 14.0% of them are fortnightly,
22.0% of them are monthly and 14.0% of them are yearly. So majority of the respondents are
42
Figure 6
43
TABLE - 7
Cumulative
Respondent Frequency Percent
Percent
Inference:
The result exhibits that out of 50 employees, 40.0% of them are preferred that grading is
being practiced in the company, 44.0% of them are ranking and 16.0% of them are checklist. So
majority of the respondents are ranking method used for conducting performance appraisal.
44
Figure 7
45
TABLE - 8
Cumulative
Respondent Frequency Percent
Percent
Immediate
6 12.0 12.0
Supervisor
HR manager 33 66.0
100.0
Total 50 100
Inference:
The result exhibits that out of 50 employees, 12.0% of them are said that the immediate
supervisor conducting the performance appraisal systems in the company, 22.0% of them are
supervisor and 66.0% of them are HR manager. So majority of the respondents are opinion that
46
Figure 8
47
TABLE - 9
Cumulative
Respondent Frequency Percent
Percent
Dissatisfied 2 4.0
100
Total 50 100
Inference:
The result exhibits that out of 50 employees, 32.0% of them are mostly satisfied, 60.0%
of them are satisfied, 4.0% of them are fairly satisfied and 4.0% dissatisfied. So majority of the
48
Figure 9
49
TABLE - 10
Cumulative
Respondent Frequency Percent
Percent
Inference:
The result exhibits that out of 50 employees, 36.0% of them are strongly agree, 48.0% of
them are agree, 4.0% of them are disagree and 2.0%of them are strongly disagree about
promotion and transfer based on performance appraisal. So majority of the respondents are
agreed that performance appraisal is very much helpful for promotion and transfer.
50
Figure 10
51
TABLE- 11
Cumulative
Respondent Frequency Percent
Percent
Inference:
The result exhibits that out of 50 employees, 32.0% of them are strongly agree, 56.0% of
them are agree, and 12.0% of them are disagree about performance appraisal improves self
confident and motivation. So majority of the respondents are agreed that performance appraisal
52
Figure 11
Performance appraisal improves self confident and
staff motivation.
53
TABLE - 12
Cumulative
Respondent Frequency Percent
Percent
Inference:
The result exhibits that out of 50 employees, 30.0% of them are strongly agreed, 64.0%
of them are agreed and 6.0% of them are disagreed. So majority of the respondents are agree that
54
Figure 12
Relationship between appraise and appraiser.
55
TABLE - 13
Cumulative
Respondent Frequency Percent
Percent
Inference:
The result exhibits that out of 50 employees, 30.0% of them are strongly agree, 46.0% of
them are agree,14.0% of them are disagree and 10.0% of them are strongly disagree about that
performance appraisal is considered for revision of pay. So majority of the respondents are
56
Figure 13
57
TABLE - 14
Cumulative
Respondent Frequency Percent
Percent
Inference:
The result exhibits that out of 50 employees, 28.0% of them are strongly agree, 42.0% of
them are agree, 16.0% of them are disagree and 14.0% of them are strongly disagree about
performance appraisal improves team role clarification and team building. So majority of the
respondents are agreed that performance appraisal improves team role clarification and team
building.
58
Figure 14
Performance appraisal improves team role clarification and team building.
59
TABLE - 15
Cumulative
Respondent Frequency Percent
Percent
Strongly Disagree 0 0
100
Total 50 100
Inference:
The result exhibits that out of 50 employees, 46.0% of them are strongly agree, 48.0% of
them are agree and 6.0% of them are disagree. So majority of the respondents are agreeing that
performance appraisal develops personal and organization career and used for succession
planning.
60
Figure 15
Performance appraisal develops career and succession planning of employees.
61
TABLE - 16
Cumulative
Respondent Frequency Percent
Percent
Inference:
The result exhibits that out of 50 employees.26.0% of them are strongly agree, 54.0% of
them are agree, 10.0% of them are disagree and 10.0% of them are strongly disagree. So majority
of the respondents are agreeing that performance appraisal place a major role in delegation,
62
Figure 16
Performance appraisal systems plays major role in delegation,
responsibilities, employee growth and development.
63
TABLE - 17
Cumulative
Respondent Frequency Percent
Percent
Strongly Disagree 0 0
100
Total 50 100
Inference:
The result exhibits that out of 50 employees.12.0% of them are strongly agree, 66.0% of
them are agree and 22.0% of them are disagree. So majority of the respondents are agreed that
64
Figure 17
65
TABLE - 18
Cumulative
Respondent Frequency Percent
Percent
Inference:
The result exhibits that out of 50 employees. 28.0% of them are strongly agree,52.0% of
them are agree,14.0% of them are disagree and 6.0% of them are strongly disagree. So majority
of the respondents are agreed that performance appraisal classifies and defines the objectives and
66
Figure 18
Performance appraisal defines the objectives and priorities of
the company.
67
TABLE - 19
Cumulative
Respondent Frequency Percent
Percent
Inference:
The result exhibits that out of 50 employees.36.0% of them are strongly agree, 46.0% of
them are agree,10.0% of them are agree and 8.0% of them are strongly disagree. So majority of
the respondents are agreed that performance appraisal identifies the personal strengths and
68
Figure 19
69
TABLE - 20
Cumulative
Inference:
The result exhibits that out of 50 employees.36.0% of them are strongly agree,54.0% of
them are agree, 8.0% of them are disagree and 2.0% of them are strongly disagree. So majority
of the respondents are agreed that performance appraisal provides a formal, recorded, regular
70
Figure 20
Respondent
Respondent plan for for
plan future development.
future development.
71
TABLE - 21
Cumulative
Respondent Frequency Percent
Percent
Inference:
The result exhibits that out of 50 employees.20.0% of them are strongly agree,70.0% of
them are agree, 14.0% of them are disagree and 4.0% of them are strongly disagree. So majority
of the respondents are agreed that periodic orientation programs are conclude to explain the
objectives.
72
Figure 21
Periodic orientation programme are conducted to explain
the objectives.
73
TABLE - 22
Cumulative
Respondent Frequency Percent
Percent
Inference:
The result exhibits that out of 50 employees.34.0% of them are strongly agree,48.0% of
them are agree, 16.0% of them are disagree and 2.0% of them are strongly disagree. So majority
of the respondents are agreed that managers take performance appraisal seriously.
74
Figure 22
Managers take performance appraisal seriously.
75
TABLE - 23
Cumulative
Respondent Frequency Percent
Percent
Inference:
The result exhibits that out of 50 employees.24.0% of them are strongly agree,46.0% of
them are agree, 26.0% of them are disagree and 4.0% of them are strongly disagree. So majority
of the respondents are agreed that efforts are made by appraiser to be objective in their appraisal.
76
Figure 23
Efforts are made by appraiser to be objective in the appraisal.
77
TABLE - 24
Cumulative
Respondent Frequency Percent
Percent
Inference:
The result exhibits that out of 50 employees.28.0% of them are strongly agree,54.0% of
them are agree, 14.0% of them are disagree and 4.0% of them are strongly disagree. So majority
of the respondents are agreed that reviewing officer take appraisal seriously and try it to educate
78
Figure 24
The reviewing officer takes appraisal seriously and tries to
educate subordinate to overcome the biases and favourism.
79
CHAPTER VI
FINDINGS
FINDINGS:
When the interview was conducted, there was a very good response from all
o After the study it is found that 84% of the employees agreed that performance appraisal is
o From the analysis, it is also found that performance appraisal improves self confidence,
o When the question is raised about the annual pay, grading reviews, 76% of the employees
o Almost all the workers agreed that the managers take performance appraisal seriously.
o From the study, it was found that there was agreement among employees that
80
SUGGESTIONS
Training is the one of the importance HRD practices in order to improve the skills and
81
CONCLUSION
and attitude.
organization and at the same time is very much useful for individuals as well in their
82
BIBLIOGRAPHY
Aswathappa .K., Human Resource and personnel management, Tata McGraw hill publications,
new Delhi,
Biswanath Ghosh, personnel management and industrial relations, world press private limited,
1987.
Josphin.k on the topic performance appraisal at Apasamy Occular devices pvt., ltd.,
vadamangtalam, pondicherry,2004.
Memoria c.b and s.v, gankar,pronciples of personnel management, bombay himalaya publishing
house, bombay,2002.
Nair and mrs. latha nair, personnel management and industrial relations, s. chand and company
publications, bombay,2002.
Tripathi, personnel management and industrial relations, Sultan chand & sons, New
2008.
83