A STUDY ON PERFORMANCE APPRAISAL IN SOUTH INDIA SPINNING MILLS

AT ERODE

CHAPTER I

INTRODUCTION
HUMAN RESOURCES MANAGEMENT:
Human Resource Management (HRM) is the function within an organization that
focuses on recruitment of, management of, and providing direction for the people who work
in the organization. Human Resource Management can also be performed by line managers.
Human Resource Management is the organizational function that deals with issues
related to people such as compensation, hiring, performance management, organization
development, safety, wellness, benefits, employee motivation, communication,
administration, and training.
Human resource management (HRM) is the strategic and coherent approach to
the management of an organization's most valued assets - the people working there who
individually and collectively contribute to the achievement of the objectives of the
business. The terms "human resource management" and "human resources" (HR) have
largely replaced the term "personnel management" as a description of the processes involved
in managing people in organizations. In simple words, HRM means employing people,
developing their capacities, utilizing, maintaining and compensating their services in tune
with the job and organizational requirement.
HUMAN RESOURCES DEVELOPMENT:
Human Resource Development (HRD) is the framework for helping employees
develops their personal and organizational skills, knowledge, and abilities. Human Resource
Development includes such opportunities as employee training, employee career
development, performance management and development, coaching, mentoring, succession
planning, key employee identification, tuition assistance, and organization development.
The focus of all aspects of Human Resource Development is on developing the
most superior workforce so that the organization and individual employees can accomplish
their work goals in service to customers.
Human Resource Development can be formal such as in classroom training, a
college course, or an organizational planned change effort. Or, Human Resource
Development can be informal as in employee coaching by a manager. Healthy organizations
believe in Human Resource Development and cover all of these bases.
PERFORMANCE APPRAISAL SYSTEM:
Performance appraisal refers to all the formal procedures used to evaluate an
individual, his contributions and potential. In other words, it is to plan and measure the
performance of an individual in terms of the requirement of the job or it is a process of
finding out how effective the organization has been at hiring and placing an employee.
Performance appraisal is a formal system of review and evaluation of individual or
team task performance. While evaluation of team performance is critical when teams exist in
an organization, the focus of performance appraisal in most firms remains on the individual
employees. Regardless of the emphasis, an effective appraisal evaluates accomplishments and
initiates plans for development, goals and objectives.

CONCEPT OF PERFORMANCE APPRAISAL SYSTEM

INTRODUCTION:
Appraising the performance of individuals, groups and organizations is a common
practice of al l societies. While in some instances these appraisal processes are structured and
formally sanctioned, in other instances they are an informal and integral part of daily
activities. Thus, teachers evaluate the performance of students, bankers evaluate the
performance of creditors, parents evaluate the behavior of their children, and all of us,
consciously or unconsciously evaluate our "own actions from time to time. In social
interactions, performance is conducted in a systematic and planned manner to achieve
widespread popularity in recent years.

MEANING:
Performance appraisal is a method of evaluating the behavior of employees in the
work spot, normally including both the quantitative and qualitative aspects of hob
performance. Performance here refers to the degree of accomplishment of the tasks that make
up an individual's job. It indicates how well an individual is fulfilling the job demands. Often
the term is confused with effort, but performance is always measured in terms of results and
not efforts. Some of the important features of performance appraisal given, they are:

 Performance appraisal is the systematic description of an employee's job- relevant

strengths and weaknesses.
 The basic purpose is to find out how well the employee is performing the job and
establish a plan of improvement.
 Appraisals are arranged periodically according to a definite plan.
 Performance appraisal is not job evaluation. Performance appraisal refers to how well
someone is doing the assigned job. Job evaluation determines how much a job is worth
to the organization and, therefore, what range of pay should be assigned to the job.

USE OF PERFORMANCE APPRAISAL:

 Performance appraisal is helpful in assessing a firms human resources data must be
available that describe the pro-mobility and potential of all employees.
 A well designed appraisal system provides a profile of the organization's
human resource strengths and weaknesses to support this effort.
 Performance evaluation ratings may be helpful in predicting the performance of job
applicants.
 Performance appraisal will point out employee specific needs for training and
development.
 Performance appraisal is useful in career planning and development.
 Performance appraisal results provide a basis for rational decisions regarding
compensation programmers.
 Performance appraisal data are also frequently used for decisions in several areas of
internal employee relations, including promotion, demotion, termination, lay-off.
And transfer.

 Performance appraisal is useful in assessment of employee potential.

 Performance appraisal can be used to determine whether HR programme such as

selection, training, and transfers have been effective or not.

OBJECTIVES OF PERFORMANCE APPRAISAL:

Performance appraisal aims at attaining the different objectives, they are
 To create and maintain a satisfactory level of performance.
  To contribute to the employee growth and development through training, self and
management development programmers.
 To help the superiors to have a proper understanding about their subordinates
 To facilitate fair and equitable compensation based on performance.
 To facilitate for testing and validating selection tests, interview techniques
through comparing their scores with performance appraisal ranks.
 To provide information for making decisions regarding lay off, retrenchment etc.
 To ensure organizational effectiveness through correcting employee for standard and
improved performance, and suggesting the change in employee behavior.

APPRAISAL PROCESS:
Each step in the process is crucial and is arranged logically. Many organizations make
every effort to approximate the ideal process, resulting in first-rate appraisal systems.
Unfortunately, many others fail to consider one or more of the steps and, therefore have less-
effective appraisal system.

Objectives of

Performance appraisal

Establish job

Expectations

Design an appraisal

Programme

Appraise performance
1. Objectives of Appraisal:
Objectives of appraisal include effecting promotions and transfers, assessing training
needs, awarding pay increases, and the like. The emphasis in all these is to correct the
problems.

2. Establish job expectations:

The second step in the appraisal process is to establish job expectations. This
includes informing the employee what is expected of him or her on the job.

3. Design appraisal programme:

Designing a appraisal programme posses several questions which need answers. They
are (i) Formal versus informal appraisal; (ii) Whose performance is to be assessed? (iii) Who
are the raters? (iv)What problems are encountered? (v) How to solve the problems? (vi) What
should be evaluated? (vi i ) When to evaluate? (vii i ) What methods of appraisal are to be
used?
4. Performance Interview:
Performance interview is another step in the appraisal process. Once appraisal has
been made of employees, the raters should discuss and review the performance with the rates,
so that they will receive feedback about where they stand in the eyes of superiors.

5. Use of Appraisal data:

The final step in the evaluation process is the use of evaluation data. The data and
information generated through performance evaluation must be used by the HR department.

METHODS OF PERFORMANCE APPRAISAL:

With the evaluation and development of appraisal system, a number of methods or

techniques of performance appraisal have been developed. The important among them.

Traditional Methods

1) Graphic Rating Scales:

Graphic rating scales compare individual performance to an absolute standard. In this

method, judgments about performance are recorded on a scale. This is the oldest and widely
used technique. This method is also known as linear rating scale or simple rating scale. The
appraisers are supplied with printed forms, one for each employee.

These forms contain a number of objectives, behavior and trait - based Qualities and
characters to be rated like quality and volume of work, job knowledge, dependability,
initiative, attitude etc., in the case of workers and analytical ability, creative ability, initiative,
leadership qualities, emotional stability in the case of managerial person.

l. These forms contain rating of scales. Rating scales are of two types, viz., continuous
rating scale and discontinuous rating scales. In continuous order like o, 1, 2, 3, 4 and 5 and in
discontinuous scale the appraiser assigns the point to each degree. The points given by the
rater know performance regarding each character. The points given by the rater to each
character are added up to find out the overall performance. Employees are ranked on the
basis of total points assigned to each one of them.
 One reason for the popularity of the rating scales is its simplicity, which permits
many employees to be quickly evaluated. Such scales have relatively low
Design cost and high in case of administration. They can easily pinpoint significant
dimensions of the job. The major drawback to these scales is their subjectivity and low
reliability. Another limitation is that the descriptive words often used in such lies may have
different meanings to different raters.

2) Ranking Method:

Under this method the employees are ranked from best to worst on some
characteristics. The rater first finds the employee with the highest performance and the
employees with the lowest performance in that particular job category and rates the former as
the best and the later as the poorest.

Then the rater selects the next highest and next lowest and so on until he rates all
the employees in that group. Ranking can be relatively easy and inexpensive, but its
reliability and validity may be open to doubt. It may be affected by rater bias or varying
performance standards.

Ranking also means that somebody would always be in the backbench. It is

possible that the low ranked individual in one group may turn out to be superstar in another
group. One important limitation of the ranking method is that size of the different between
individuals is not well defined. For instance, there may be little difference between those
ranks third and fourth.

3) Paired Comparison Method:

This method is relatively simple. Under this method, the appraiser ranks the
employees by comparing one employee with all other employees in the group, one at a time.
As illustrated, this method results in each employee being given a positive comparison total
and a certain %age total positive evaluation.

4) Forced Distribution Method:

 The rater may rate his employees at the higher or at the lower end of the scale under
the earlier methods. Forced distribution method is developed to prevent the raters from rating
too high or too low. Under this method, the rater after assigning the points to the performance
of each employee has to distribute his ratings in a pattern to conform to normal frequency
distribution.

Thus, similar to the ranking technique, forced distribution requires the raters
(supervisors) to spread their employee evaluation in a prescribed distribution. This method
eliminates central tendency and leniency biases. However, in this method employees are
placed in certain ranked categories but not ranked within the categories.

Quite often work groups do not reflect a normal distribution or individual

performance. This method is based on the questionable assumption, as group of employees
will have the same distribution of excellent, average and poor performers.

If one department has all outstanding employees, the supervisor would find it
extremely difficult to decide who should be placed in the lower categories. Difficulties can
also arise when the raters most explain to the employee why he was placed in one grouping
and others were placed in higher groupings.

5) Checklist Methods:

The Checklist is a simple rating technique in which the supervisor is given a list of
statement or words and asked to check statements representing the characteristics
and performance of each employee. There are three types of checklist methods, viz, simple
checklist, weighted checklist and forced choice method.

6) Critical Incident Method:

Employees are rated discontinuously, i.e., once in a year or six months under the
earlier methods. The performance rated may not reflect real and overall performance, as the
rater would be serious about appraisal method, i.e., critical incident method has been
developed.
Under this method, the supervisor continuously records the critical incidents of the
employee performance or behavior relating to all characteristics (both positive and negative)
in a specially designed notebook. The supervisor rates the performance of his subordinates
on the basis of notes taken by him.
 Since the critical incident method does not necessarily have to be a separate rating
system, it can be fruitfully employed as documentation of the reasons why an employee was
rated in a certain way.
The critical incident method has the advantage of being objective because the rater
considers the records of performance rather than the subjective points of opinion.

7) Essay or Free From Appraisal:

This method requires the manager to write a short essay describing each employee's
performance during the rating period. This format emphasizes evaluation of overall
performance, based on strengths weakness of employee performance, rather than specific job
dimensions. By asking supervisors to enumerate specific examples of employee behavior,
the essay technique minimizes supervisory bias and halo effect.

8) Group Appraisal:
Under this method, an employee is appraised by a group of appraisers. This group
consists of the immediate supervisor of the employee, to other supervisors who have close
contact with employee's work, manager or head of the department and consultants
The head of the department or manager may be the chairman of the group and the immediate
supervisor may act as the coordinator for the group activities. This group uses any one or
multiple techniques discussed earlier. The immediate supervisor enlightens others members
about the job characters, demands, standards of performance etc.
Then the group appraises the performance of the employee, compares the actual performance
with standards, find out the deviations, discusses the reasons therefore, suggests ways for
improvement of performance, prepares action plans, studies the need for change in job
analysis and standards and recommends change, it necessary. This method is widely used for
purpose of promotion, demotion and retrenchment appraisal.

9) Confidential Report:

Assessing the employee's performance confidentially is a traditional method of

performance appraisal. Under this method, superior appraises the performance of his
subordinates based on his observations, judgments and institutions. The superior keeps his
judgment and report confidentially. In other words the superior does not allowed the
employee to know the report and his performance. Superior writes the report about his
subordinates, strengths. Weakness, intelligence, attitude to work, sincerity, commitment,
punctuality, attendance, conduct, character, friendliness, etc,
 Though confidential report is a traditional method, most of the public sector
organizations still follow this method in appraising the employee's performance. This method
suffers from a number of limitations.
MODERN METHODS
1) Behaviorally Anchored Rating Scales (BARS):
The Behaviorally Anchored Rating Scales (BARS) method combines elements of the
traditional rating scales and critical incidents methods. Using BARS, job behaviors from
critical incidents - effective and ineffective behaviors are described more objectively. The
method employs individuals who are familiar with a particular job to identify its major
components.
They then rank and validate specific behaviors for each of the components. BARS
require considerable employee participation; its acceptance by both supervisors and their
subordinates may be greater. Proponents of BARS also claim that such a system
differentiates among behavior, performance and results, and consequently is able to provide a
basis for setting developmental goals for the employee.
Because it is job - specific and identities observable and measurable behavior, it is
more reliable and valid method for performance appraisal.
2) Assessment Centre:
This method of appraising was first applied in German Army in 1930. Later business
and industrial houses started using this method. This is not a technique of performance
appraisal by itself. In fact it is a system or organization, where assessment is done by several
individuals and also by various experts by using various techniques.
In this approach individual from various departments are brought together to spend two or
three days working on an individual or a group assignment similar too the ones they'd be
handling when promoted. All assess get an equal opportunity to show their talents and
capabilities and secure promotion based on merit. An assessment model is shown below.
Human Resource Accounting deals with cost of and contribution of human resource
to the organization. Cost of the employee includes cost of manpower planning, recruitment,
selection, induction, placement, training, development, wages and benefits etc. employee
contribution is the money value of employee service which can be measured by labour
productivity or value added by human resources.

3) Management by objectives:

Although the concept or management by objectives was advanced by Peter F.Duckers

way back in 1954, it was described only recently as 'large range' in performance appraisal.
Refinements brought out by George Odione, Valentines, Humble and others have enriched
the concept and made it more acceptable all over the globe as an MBO in their work settings.
Some of the companies which implemented MBO reported excellent results, others
disappointments, and many in decisions. Started briefly, MBO is a process whereby the
superiors and subordinate managers of an organization j oi nt l y identify its common goals,
define each individual's major areas of responsibility in terms of results excepted of him, and
use these measures of guides for operating the unit and assessing the contribution of its
members. Generally, the unit and the assessing contribution of its members.
■ The subordinate and superior jointly determine goals to be accomplished during the
appraisal period and what level of performance is necessary for the subordinate to
satisfactory achieve specific goals.
■ During the appraisal period the superior and subordinate update and later goals as
necessary due to changes in the business environment.

4) Psychological Appraisal:

Psychological appraisal are conducted to access the employee potential, Psychological

appraisal consist of
 In - depth interviews
 Psychological tests
 Consultations and discussions with the employee
 Discussions with the superior's sub-ordinates and peers
 (e) Reviews of others evaluations.

5) Counseling:

After the performance of the employee is appraised, the superior should

inform the employee about the level of his performance, the reason for the same,
need for and the methods of improving the performance. The superior should
counsel the employee about his performance and the methods of improving it.
 Counseling is a planned, systematic intervention in the life of an individual
who is capable of choosing the goal and the direction of his development. Thus, the
purpose of counseling is to help the employee aware of his own performance, his
strengths and weakness, opportunities availabilities available for performance
counseling can be done in the form of performance interview by the superior.
THE POST APPRAISAL INTERVIEW:
The post appraisal interview has been considered by most of the organizations, as well
as employees, as the most essential part of appraisal system. This interview provides the
employee the feedback information, and an opportunity to appraiser to explain the employee
his rating, the traits and behavior he has taken into consideration for appraisal etc.
It also gives the opportunity to employee to explain his views about the rates,
standards or goals, rating scale, internal and external environment causes for low level of
performance, his resources responsible for performance etc. further it helps both the parties to
review standards, set new standards based on the reality factors, and helps the appraiser to
offer his suggestions, help, guide and coach the employee for his advancement. Thus, the
post appraisal interview is designed to achieve the following objectives.
 To help employees do a better job by clarifying what is expected of them;
 To plan opportunities for development and growth;
 To strengthen the superior -subordinate working relationship by developing a mutual
agreement of goals;
 To provide an opportunity for employees to experience themselves on
performance related issues.

Relating Performance Appraisal to Rewarding:

Management should recognize and performance. The forms of recognizing and
rewarding performance include: (a) Private and public praise, (b) Written commendation,
(c) published commendation, (d) increased autonomy, (e) change in job title, (f) Status
symbols like office space, furnishings, (g) performance bonuses, (h) salary increases, (i)
promotion in grade, or increase in responsibilities and (j) various forms of supplementary
compensation. Managers should match the rewards both with performance and with the
perception and needs of the employee.
6) Managerial Appraisal:

It is relatively easy to appraise the performance of technical or operative employees

compared to managerial personnel. This is because; the performance of operative employees
can be measured quantitatively, whereas the performance of managers cannot be determined
quantitative terms. Harold Koontz has developed a concept of managerial functions, viz.,
planning, organizing, leading motivating, staffing and controlling. Performing a number of or
series of activities can perform each of these functions. For example, performing staffing
functions requires performing a series of activities like analyzing jobs of his department,
planning for human resources, deciding upon internal and external recruitment. Thus each
function and sub functions of manager are elaborated into a series of activities. The checklist
contain the questions in these areas is prepared with a five degree rating scale, i.e., externally
poor performance, neither poor nor fair performance and externally fair performance. Thus
this technique measures the performance of managers in managing organizational
environment.

IMPORTANCE OF PERFORMANCE APPRAISAL:

For many organizations the primary goal of an appraisal system is to improve

individual and organizational performance. There may be other goals, however. In fact,
performance appraisal data are potentially valuable for virtually every human resource
functional area.

SYSTEM OF PERFORMANCE APPRAISAL:

PERFORMANCE APPRAISAL IS A NINE-STEP PROCESS:

 Establish performance standards.
 Communicate standards/expectations to employee.
 Measure actual performance due to the environment influences.
 Adjust the actual performance due to the environmental influences.
 Compare the adjusted performance what that of others and previous.
 Compare the actual performance with standards and find out deviations, if any.
  Communicate the actual performance to the employee concerned.
 Suggest changes in job analysis and standard, if necessary.
 Follow-up performance appraisal report.

At the first stage, performance standards are established based on the job description
and job specification. The standard should be clear, objective and incorporate all the factors.
The second stage is to inform these standards to all the employees including
appraisers.
The third stage is following the instructions given for appraisal, measurement of
employee performance by the appraisers through observations, interviews, records and
reports.

Fourth stage is finding out the influence of various internal and external factors on
actual performance. The influence of these factors may be either inducing or hindering the
employee performance. The measured performance may be adjusted according to the
influence of external and internal factors. The performance derived at this stage may be taken
actual performance.

Fifth stage is comparing the actual performance with that of other employees and
pervious performance of the employee and others. This given an idea where the employee to
the influence of external and internal factors. The performance derived at this stage may be
taken actual performance.

Sixth stage is comparing the actual performance with the standards and finding out
deviations. Deviations may be positive or negative. If employee's performance is more than
standards, it is positive deviation and vice-versa is negative deviation.

Seventh stage is communicating, the actual performance of the employee and other
employees doing the same job and discuss with him about the reasons for the positive or
negative deviations from the pre-set standards as the case may be.

Eighth stage is suggestions necessary changes in standards in standards, job analysis,

and internal and external environment.
 Ninth stage is follow-up of performance appraisal report. This stage includes guiding,
counseling, coaching and directing the employee or making arrangements for training and
development of the employee in order to ensure improved performance .If actual
performance is very poor and beyond the scope of improvement it is necessary to take steps
for demotion or retrenchment or any other suitable measure.

PROBLEMS IN PERFORMANCE APPRAISAL:

 Performance appraisal has come under a heavy barrage of criticism. The list of the
problems that have been associated with performance appraisal are as follows:
 A potential weakness of traditional appraisal methods is that they lack objectivity.
 A huge challenge that impedes an effective performance evaluation is the bias, which
can be either positive or negative.
 Sometimes halo error occurs when a manager generalizes one positive performance
feature or incident to all aspect of employee performance.
 Leniency: - Giving an undeserved high performance appraisal rating to an employee.
 Strictness: - Being unduly critical of an employee's work performance.

ESTABLISHMENT OF PERFORMANCE APPRAISAL CRITERIA:

The most common appraisal criteria are traits, behaviors, competencies, goal
achievement, and improvement potential. The main objective of establishment of
performance criteria is to identify the aspects of a person's performance that an organization
should evaluate.

• Traits: -
Certain employee traits such as attitude, appearance, and initiative are the basis for
some evaluations.

• Behaviors: -
 When an individual's task outcome is difficult to determine, organizations may
evaluate the person's task related behavior or competencies. If certain behaviors result in
desired outcomes, there is merit in using them in the evaluation process.

• Competencies: -
This includes a broad range of knowledge, skills, traits, and behaviors that may be
technical in nature, relate to interpersonal skills or be business oriented.

• Goal achievement: -
If organizations consider ends more important than means, goal achievement
outcomes become an appropriate factor to evaluate.
• Improvement potential: -
When organizations evaluate their employees performance, many of the criteria used
focus on the past. From a performance management view point the problem is that you
cannot change the past. Unless a firm takes further steps, the evaluation data become merely
historical documents. Therefore firms should emphasize the future, including the behaviors
and outcomes needed to develop the employee, and in the process achieve the firm's goals.
This involves an assessment of the employee's potential.

CHARACTERISTICS OF AN EFFECTIVE APPRAISAL SYSTEM:

The basic purpose of a performance appraisal system is to improve performance of
individuals, teams, and the entire organization. The system may also serve to assist in the making
of administrative decisions concerning pay increases, transfers, or terminations. In addition,
the appraisal system must be legally defensible. Organizations should seek an accurate assessment
of performance that permits the development of a plan to improve individual and group
performance.
The following factors assist in accomplishing these purposes;

• Job related criteria: -

Job relatedness is perhaps the most basic criteria in employee performance appraisal. More
specifically, evaluation criteria should be determined through job analysis.

• Performance expectations: -
Managers and sub-ordinates must agree on performance expectations in advance of the
appraisal period. On the other hand, if employees clearly understand the expectations, they can
evaluate their own performance and may timely adjustments as they perform their jobs
without having to wait for the formal evaluation review.
• Standardization: -
Firm should use the same evaluation instrument for all employees in the same job
category- who work for the same supervisor. Supervisors should also conduct appraisals
covering similar periods for these employees. Regularly scheduled feedback sessions and
appraisal interviews for all employees are essential.
 Trained appraisers: -
The individual or individuals who observe at least a representative sample of job
performance normally have the responsibility for evaluating employee performance. This
person is often the employee's immediate supervisor. Training should be given to these
appraisers to ensure accuracy and consistency. A training module posted on the internet or
company intranet may serve to provide information for managers as needed.
• Continuous open communication: -
Most employees have a strong need to know how well they are performing. A good
appraisal system provides highly desired feedback on a continuing basis. There should be few
surprises in the performance review.
• Performance reviews: -
A performance review allows them to detect any errors or omissions in the
appraisal, or an employee may simply disagree with the evaluation and want to challenge it.
Constant employee performance documentation is vitally important for accurate performance
appraisal.
• Due process: -
Ensuring due process is vital. If the company does not have a formal grievance procedure,
it should develop one to provide a employees an opportunity to appeal appraisal results that
they consider inaccurate or unfair. They must have a procedure for pursuing their grievances
and having them addressed objectively.
Appraisal Process Followed In Delta Paper Mills:
In delta paper mills they are following one of traditional method of performance
appraisal, that is critical incident method. But it is not helpful for the employees, because it is
older method.
Critical Incident Technique:

This, too, is a type of appraisal for the employee alone. Here, the employee's best and
worst incidents of behavior are analyzed annually. These events are the ones that are the most
critical in appraising the employee.
NEED FOR THE STUDY

Appraising the performance of individuals, groups and organizations is a common

practice of all societies. While in some instances these appraisal processes are structured and
formally sanctioned, in other instances they are an informal and integral part of daily
activities. Consciously of unconsciously evaluate our own actions from time to time. In
social interactions, performance is conducted a systematic and planned manner to achieve
widespread popularity in recent years.
Performance appraisal is essential to understand and improve the employee's
performance through HRD. In fact, performance appraisal is the basis fore HRD. It was
viewed performance appraisal was useful to decide upon employee promotion / transfer
salary determination and the like. But the recent developments in human resources
management indicate that performance appraisal is the basis for employee development.
Performance appraisal indicates the level of desired performance level, level of actual
performance and the gap between these two. This gap should be bridged through human
resources development techniques like training executive development etc.
According to the past survey it was noticed that the performance appraisal
system in this company was not up to the mark. Hence there would be scope for giving few
suggestions as per my knowledge to improve the performance appraisal system which was
quite essential for the better performance of the employees.
IMPORTANCE OF THE STUDY
Performance appraisals provide employees and managers with opportunities to discuss areas
in which employees excel and those in which employees need improvement. Performance
appraisals should be conducted on a regular basis, and they need not be directly attached to
promotion opportunities.

Personal Attention
During a performance appraisal review, a supervisor and an employee discuss the employee's
strengths and weaknesses. This gives the employee individual face time with the supervisor
and a chance to address personal concerns.
Feedback
Employees need to know when their job duties are being fulfilled and when there are issues
with their work performance. Managers should schedule this communication on a regular
basis.
Career Path
Performance appraisals allow employees and supervisors to discuss goals that must be met to
advance within the company. This can include identifying skills that must be acquired, areas
in which one must improve, and educational courses that must be completed.

Employee Accountability
When employees know there will be regularly scheduled evaluations, they realize that they
are accountable for their job performance.
Communicate Divisional and Company Goals
Besides communicating employees' individual goals, employee appraisals provide the
opportunity for managers to explain organizational goals and the ways in which employees
can participate in the achievement of those goals.
OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE

 To study the performance appraisal of employees at SOUTH INDIA SPINNING

MILLS AT ERODE

SECONDARY OBJECTIVE

 To study the purpose of performance appraisal conducted SOUTH INDIA

SPINNING MILLS AT ERODE
 To understand the opinion of employees towards performance appraisal at SOUTH
INDIA SPINNING MILLS AT ERODE
 To identify the effect of performance appraisal on individual and organizational
development.
 To understand the existing relationship between management and employees.
 To identify ways to improve the existing performance appraisal system
SCOPE OF THE STUDY
 The management can identify the employee’s opinion of the existing performance
appraisal system.
 The study can be used to make the present appraisal system more effective and
satisfied among employees.
 It could be used to identify training and development needs for the individual and the
organization as a whole.

LIMITATIONS OF THE STUDY

 The period of study is only for about 2 months, which is a major constraint.
 The perception bias or attitude of the respondents may also act as hurdles to the study.
 The study is only confined to performance appraisal.
 The study cannot be oriented with all HRM practices followed by
 Some of the questionnaires were incomplete.
 The result of the study are subject to bias and prejudices of the respondents
 Unwillingness and inability of the respondent to provide true information.

COMPANY PROFILE

South India Spinning Mills Private Limited is a Private incorporated on 30 March 2015. It is
classified as Non-govt company and is registered at Registrar of Companies, Coimbatore. Its
authorized share capital is Rs. 100,000,000 and its paid up capital is Rs. 65,800,000.It is
inolved in Spinning, weaving and finishing of textiles.

South India Spinning Mills Private Limited's Annual General Meeting (AGM) was last held
on 14 September 2016 and as per records from Ministry of Corporate Affairs (MCA), its
balance sheet was last filed on 31 March 2016.

Directors of South India Spinning Mills Private Limited are Devaraj Senthilkumar and
Chenniappagounder Duraisamy.

South India Spinning Mills Private Limited's Corporate Identification Number is (CIN)
U17100TZ2015PTC021253 and its registration number is 21253.Its Email address is
senthilsouthindia@gmail.com and its registered address is S.F.185, SOUTH INDIA NAGAR,
METTUPUDUR VILLAGE, VIJAYAMANGALAM PERUNDURAI Erode TN 638056 IN ,
- , .

Current status of South India Spinning Mills Private Limited is - Active.

COMPANY DETAILS

CIN U17100TZ2015PTC021253
Company Name SOUTH INDIA SPINNING MILLS PRIVATE LIMITED
Company Status Active
RoC RoC-Coimbatore
Registration Number 21253
Company Category Company limited by Shares
Company Sub Category Non-govt company
Class of Company Private
Date of Incorporation 30 March 2015
Age of Company 3 years, 2 month, 2 days
Activity Spinning, weaving and finishing of textiles.
Click here to see other companies involved in same
activity.
Number of Members -
Share Capital & Number of Employees

Authorised Capital ₹100,000,000

Paid up capital ₹65,800,000
Number of Employees Login to view
Listing and Annual Compliance Details

Listing status Unlisted

Date of Last Annual 14 September
General Meeting 2016
Date of Latest Balance 31 March 2016
Sheet
Director Details
DIN Director Name Designation Appointment
Date
01051461 DEVARAJ Director 30 March View other
SENTHILKUMAR 2015 directorships
07127826 CHENNIAPPAGOUNDER Managing 30 March View other
DURAISAMY Director 2015 directorships
Past Director Details

DIN Director Name Appointment Date Cessation Date

Login to view past directors.
Companies with Similar Address

CIN Name Address

U40300TZ2017PTC029 SISM WINDMILLS SF NO 183/1,2, SOUTH INDIA NAGAR
120 PRIVATE METTUPUDUR VILLAGE
LIMITED VIJAYAMANGALAM(PO)
PERUNDURAI(TK) ERODE(DT) Erode
TN 638056 IN
U01222TZ1998PTC008 D.R.EGG S.F.NO.31 NADUPATTI VILLAGE
255 EXPORTS VIJAYAMANGALAM - PERUNDURAI
PRIVATE TK ERODE DT Erode TN 638056 IN
LIMITED
U17111TZ2003PTC010 P N S TEXTILES VIJAYAPURI VILLAGE
796 PRIVATE PERUNDURAI TK ERODE DISTRICT
LIMITED VIJAYAMANGALAM POST TN
638056 IN
U40108TZ2015PTC021 KRISHNA WIND S.F.No.240 Kaikolapalayam Pirivu,
234 POWER ENERGY Vijayamangalam Velliraveli
PRIVATE Vijayamangalam Coimbatore TN 638056
LIMITED IN
U74999TZ2014PTC020 PALIYO 3/47,VIJAYAMANGALAM VIA
323 CLEANING PERUNDURAI TALUK ERODE Erode
SYSTEMS TN 638056 IN
PRIVATE
 LIMITED
U27107TZ2007PTC014 A R K ELECTRO KSP&CO,15/7B,NH-47,COVAI MAIN
078 ALLOYS INDIA ROAD,VIJAYAMANGALAM,
PRIVATE PERUNDURAI ERODE Erode TN
LIMITED 638056 IN
U01222TZ2011PTC017 AMMAN EMU 4/727,UTTUKULI MAIN ROAD
306 FARMS & VIJAYAMANGALAM PERUNDURAI
HATCHERIES Erode TN 638056 IN
(INDIA) PRIVATE
LIMITED
U17111TZ2012PTC018 M.S. TEX MILLS NO. 3/333, THULUKKAN THOTTAM,
075 INDIA PRIVATE VIJAYAMANGALAM, PERUNDURAI
LIMITED TALUK Erode TN 638056 IN
U45201TZ2004PTC011 VIJAYAMANGAL D NO 159
371 AM MOONGILPALAYAMVIJAYAMANGA
INFRASTRUCTUR LAM POST PERUNDURAI TALUK
E PROMOTERS ERODE DISTRICT Erode TN 638056 IN
PRIVATE
LIMITED

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Prosecution Details

S.No. Defaulting Entities Court Name Prosecution Section Date Of Order Status

No prosecutions found

Charges/Borrowing Details
Charge Creation Modification Closure Assets Under Amount Charge
ID Date Date Date Charge Holder

10572993 2015-04- - - Immovable property 293,000,000 Canara

18 or any interest Bank
therein; Book debts;
Movable property
(not being pledge)

Establishments Details

Establishment Name City Pincode Address

No establishments found

*Industry classification is derived from National Industrial Classification. If the company has
changed line of business without intimating the Registrar or is a diversified business,
classification may be different. We make no warranties about accuracy of industrial
classification

CHAPTER II
REVIEW OF LITERATURE
REVIEW OF LITERATURE
1. A performance appraisal is conducted on an annual basis for existing employees
whereas for trainee and new recruits it is done on quarterly basis in many
organizations. Here author studies about the multidimensional nature of job where the
nurse manager gives rating to different job of nursing process. Thus, Employees who
have relatively less competition or lenient appraisers have higher appraisal than to
equally competent employee (Rajput, et al, 2015).
2. The survey was made on educational institution of Takoradi, Ghana, where author
study was focused on employee/staff perceptions on performance appraisal method,
biases or error related to the approach. Perception influence people’s judgment and
attitudes towards particular thing, therefore the staff might hold different opinions
 about the performance appraisal system in the organization. The research on this
concept was analyzed, using different method such as descriptive statistics and the
results of the study says that employees are affected by the Performance appraisal
system and are affected by major error (Boachie-Mensah, et al, 2014).
3. Samuel Obino Mokaya, Jacqueline Lovega Musau, Juma Wagoki and Kabare
Karanja (2013), studied on “Effects of Organizational Work Conditions on
Employee Job Satisfaction in the”, and assessed on the effects of organizational work
conditions, remuneration and promotion systems on employee job satisfaction .a study
found that the employees are satisfied with the conducive working conditions,
satisfactory remuneration package, and a fair, equitable and satisfactory promotion
system. The study suggested that management should provide equal opportunities for
training and development to its employees to help improve their capacities for
effective help improve their capacities for effective delivery and satisfaction. Also
management should form committee to oversee promotion other than relying on
manager’s decision alone, regularly review employees’ salaries and benefits to ensure
that they are commensurate to their skills and work experience, comparable to the
general industry practices which would boost employees morale.
1. Bindu Anto Ollukkaran and Rupa Gunaseelan (2012) in their study on “A Study
on the Impact of Work Environment on Employee Performance” examined on the
work environment factors which have an influence on employee performance. The
study found that training facilities, monetary package, impact of rewards and
recognitions, safe working conditions, job security influences the employee
performance. Also study suggested that management should consul employees before
decision making, encourage their employees to experiment new methods and try out
creative ideas, organise more training development programs for improving the
performance of employees
2. . Anitha R. (2011), in her study entitled, “A study on job satisfaction of paper
mill employees with special reference to Udumalpet and Palani Taluk”, reflected
that only 44% of the employees are satisfied with the working conditions, 31% of
them with the welfare facilities, 44% of them with the accident compensation, and
42% of them are satisfied with the rewards provided and 52% of them are satisfied
with the grievance handling procedure. The organization may give importance to
certain factors such as Canteen, rest room facilities, rewards, recognition and
promotion policy so that satisfaction of the employees may be improved further.
3. Mosammod Mahamuda Parvin and M. M. Nurul Kabir (2011) in their study on
“Factors affecting employee job satisfaction of Pharmaceutical Sector” evaluated job
satisfaction of employees in different pharmaceutical companies. It focuses on the
relative importance of job satisfaction factors and their impacts on the overall job
satisfaction of employees. It also investigates the impacts of pharmaceutical type,
work experience, age, and sex differences on the attitudes toward job Satisfaction.
The result shows that salary, efficiency in work, fringe supervision, and co-worker
relation are the most important factors contributing to job satisfaction.
4. Abdulla et al. (2011) examines the relationship between job satisfaction and
environmental and demographic factors and found environmental factors (such as
salary, promotion and supervision) better predictors of job satisfaction as compared to
75 demographic factors (such as sex, age and education level as well as other factors
related to their work experience, such as job level, shift work, and years of
experience).
5. Lai (2011) argue that an efficient compensation system result in organizational
growth and expansion and exhibit a positive relationship between employee
satisfaction and job-based wages, skill-based pay and performance-based pay. The
study concludes that the intrinsic factors of motivation, including recognition, work,
career opportunities, professional growth, responsibility, good feeling about the
organization that has a significant correlation with job satisfaction, while hygiene
(external) factors have no significant relationship with job satisfaction of employees
satisfaction.
6. H.C. Shiva Prasad(2010) in this research paper authers have done work to dheck the
performance of indian software professionals (SPs) Data were collected from 441
software and senior software engineers from eight Indian software firms. The team
leaders assessed the performance of software and senior software engineers on 16
items. The exploratory and confirmatory factor analyses of scores on 16 items of the
instrument suggest six dimensions of performance. They are work-efficiency,
personal resourcefulness, inter- and intra-personal sensitivity, productivity orientation,
timeliness, and business intelligence.

7. Hanif and Kamal (2009), argues that if companies makes favourable strategies and
rules for the employees related to pay scales, policy development, staff input, and the
work environment, may lead to employee engagement, satisfaction and increased
 employee loyalty with the organization because satisfied employees are more likely to
be welcoming and attentive which attracts customers and the employees not satisfied
with the job can lead to customer unhappiness.
8. Shirvastava Arunima and Purang Pooja (2009) in their study entitled, “Employee
Perceptions of Job Satisfaction: Comparative Study on Indian Banks”, examined the
job satisfaction level of a public sector and private sector bank employees in India.
Ttest and qualitative analysis is used to stud the differences in employee attitudes. The
results of the study indicated that the means of the public and private banks were
significantly different from each other. It was found that private sector bank
employees perceive greater satisfaction with pay, social and growth aspects of job as
compared to public sector bank employees. On the other hand, public sector bank
employees have expressed greater satisfaction with job security as compared to
private sector bank employees.
9. Srivastava A. K. (2008), in the study on “Effect of Perceived Work Environment
on Employees’ Job Behaviour and Organizational Effectiveness”, examined the
effect of two constituents of work environment (i.e. physical and psychosocial on
employees’ job satisfaction and performance, and organizational effectiveness of 360
technical supervisors and operating core personnel. The analyses revealed that
participants who perceived their work environment as to be adequate and favourable
scored comparatively higher on the measures of job satisfaction, performance, and
perceived organizational effectiveness. The two constituents of work environment
were also found causing significant variance in employees’ job behaviour and their
perception of organizational effectiveness.
10. Selvamani and Rani (2008), opined that Dairy Co-operatives and Development of
Rural Women in the Era of Globalisation, identified relation between dairy
cooperatives and women. According to their study highlighted women participation,
problem faced by dairy co-operatives for development of rural women in the
globalization environment. In order to survive and sustain in the new economic era of
liberalization dairy co-operatives require both financial assistance and technical
assistance from central and state governments, state and national level co-operative
organizations, in-case the co-operatives need to serve in the new economic era of
globalization.
11. Narcisse and Harcourt (2008) in their article titled, “Employee fairness perceptions
of performance appraisal: a Saint Lucian case study” identified the essential factors
 which influence employees’ fairness perceptions of their performance appraisals, and
determine the applicability of these factors to the experiences of employees in a Saint
Lucian public service organization. Fairness perceptions are of three main types. First,
distributive justice refers to the perceived fairness of an actual appraisal rating.
Second, procedural justice refers to the perceived fairness of procedures used to
determine the appraisal rating. Third, interactional justice refers to the perceived
fairness of the rate’s interpersonal treatment of the rate during the appraisal process.
12. Sanwong (2008) in his article entitled, “The Development of a 360- Degree
Performance Appraisal System: A University Case Study”, examined the functioning
of an innovative 360-degree performance appraisal system among a sample of 75
employees at a Thai university. The data for the system came from supervisors,
colleagues, clients and junior staff as well as from the employees themselves. The
validity of the system was examined on two occasions. While all employees were
satisfied with the system, support and clerical staff in the university were more
satisfied than academic staff. A number of suggestions were made for improving the
'working' of such a system in a university environment.
13. Wilson and Jones (2008) in their article titled “Reducing job irrelevant bias in
performance appraisals: compliance and beyond” state that job-irrelevant
discrimination seems as ubiquitous as the performance appraisals in which it is
commonly detected. This paper explores both compliance-based and more proactive
approaches that deal with the various possible sources of discrimination in
performance appraisal ratings. The suggestions lead to a code of practice for
performance management in firms across cultures and national boundaries.
14. Doleh and Weir (2007) Jamal Abu-Doleh and David Weir, “Dimensions of
performance appraisal systems in Jordanian private and public organizations”,
Int. J. of Human Resource Management, Vol. 18, No.1, 2007, pp.75–84 52 in
their article titled “Dimensions of performance appraisal systems in Jordanian private
and public organizations” explore the attitudes of human resource managers working
in the Jordanian private and public organizations towards the functions of their
performance appraisal systems, and to the ways in which performance appraisal
systems are implemented. A self-completion questionnaire was the main data
collection method used in this study
15. Kuvaas (2006) in his article titled “Performance appraisal satisfaction and employee
outcomes: mediating and moderating roles of work motivation” explored alternative
 relationships between performance appraisal satisfaction and employee outcomes in
the form of self-reported work performance, affective organizational commitment and
turnover intention. A cross-sectional survey of 593 employees from 64 Norwegian
savings banks showed that performance appraisal satisfaction was directly related to
affective commitment and turnover intention. The relationship between performance
appraisal satisfaction and work performance, however, was both mediated and
moderated by employees’ intrinsic work motivation. The form of the moderation
revealed a negative relationship for employees with low intrinsic motivation and a
positive relationship for those with high intrinsic motivation. Implications for practice
and directions for future research are discussed
16. Rafikul Islam(July 8-10, 2005) has discussed In this article scholars have discussed
that to evaluate the performance of organization that it is meeting its goals or not, it is
important to evaluate the performance of employees of the organization and for this
evaluation effective performance appraisal system should be maintained. They have
mentioned two main objectives of this study first is to give rewards to those
employees who have performed good in achieving organizational goals and second is
to identify those objectives which are not met and make an action plan to ensure that
they will achieved in future. In this paper AHP (analytic hierarchy process) to
evaluate employee performance. The criteria is used for appraisal is: quantity/quality
of the work, planning/organization, initiative/commitment, teamwork/cooperation,
communication and external factors
17. The Performance appraisal approach is formal and structured system of measuring as
well as evaluating an employee’s job related behaviors and output for the same and to
study how and why the employee is currently performing on the job and how he can
perform his job more effectively in the near future. (Deepa. E, et al, 2004).
18. The result through regression analysis shows that employees think appraisal rating as
manipulated because of rater’s personal bias which indirectly reduces job satisfaction
and high turnover (Poon, et al, 2004).
19. T. R. Manoharan (2002) has written In this article authors have discussed that they
have noticed that in many organizations appraisal systems are: (a) not relevant to
organizational objectives, (b) subject to personal bias, and (c) are often influenced
more heavily by personality than by performance. To eliminate these negative things
there is a attempt with a computer based tool called Data Envelopment Analysis
(DEA) which is used in the working place to evaluate the performance of employees
20. The author (Deepa. E, et al 2004) summarizes on the performance appraisal
system/method as a whole, their framework and its relationship with different job
related concepts as well as issues related to Performance appraisal such as how
Performance appraisal (PA) is related to job satisfaction, organization citizenship
behavior etc
21. The article of the author (Roberts, et al, 2002) summarizes about the foundation for
participation of employee including its intrinsic motivational value, present available
information. The role of goal setting and feedback of performance appraisal for
enhancing participation effectiveness is outlined. The factors that resulted in lack of
effectiveness of participation includes lack of training of employee, absence of rater
accountability strategies, and organizational and supervisors resistance to honest
subordinate feedback (Roberts, et al, 2002).
22. A performance appraisal system is a wide concept and as a Performance Management
it has become a part of more strategic approach towards HR activities and as a result
has it has begun to focus more on motivational and social appraisal. As a result of
this, the research on the subject has moved beyond the limited and accuracy of
performance ratings . The organization’s outcome that is its success and failure is
determined by Performance appraisal, thus this system is considered to be an
important work performance in any organization. (Fletcher, et al, 2001
23. Rose (2001) studied that job satisfaction is a complex concept and can be divided into
intrinsic and extrinsic satisfaction Intrinsic satisfaction is associated with the content
77 of one’s job, such as autonomy, degree of responsibility, variety of skills,
supervision etc. In general, intrinsic sources of satisfaction comprise the qualitative
attributes of a job. On the other hand, extrinsic satisfaction is associated with one’s
work environment (working conditions), such as working hours, safety, promotion
opportunities, tangible rewards and other bonuses. It is necessary, therefore, to adopt a
more detailed measurement of satisfaction, where both intrinsic and extrinsic
characteristics are taken into account. Mrs.
24. Heena Rawal (1999), studied the profitability of five District Milk Producers’
Cooperative Union Ltd. of Gujarat state. She studied costing and pricing practice of
milk co-operative of Gujarat state. They found that the profitability increase by
reducing the cost or increasing the total sales. The cooperative has not adopted a
proper costing system and cost-volume profit method to control cost. Cost centre has
not been identified by any of the co-operative dairy.
25. Armstrong and Baron (1998), report has set out criteria for performance
measurement. Performance measures should provide a sound basis for feedback and
actions, be comprehensive and precise, be verifiable, focused on measurable outputs,
be relevant to objectives and be related to strategic goals and measures that are
organizationally, significant and drive business performance.
26. Schermerhorn (1993) defines job satisfaction as an affective or emotional response
towards various aspects of an employee’s work. The author emphasizes that likely
causes of job satisfaction include status, supervision, co-worker relationships, job
content, remuneration and extrinsic rewards, promotion and physical conditions of the
work environment, as well as organisational structure.
27. Research conducted by Vitell and Davis (1990) which involved employees in a
management information system environment, found a statistically significant
relationship between job satisfaction and the dimension of work itself. Results from
other studies conducted indicate that a dimension such as the work itself can result in
either job satisfaction or dissatisfaction (Oshagbemi, 1997; Ruthankoon & Ogunlana,
2003).
28. D. S. Thakur (1975), studied the progress of selected milk co-operatives in Gujarat
and analysed their impact on the economic conditions of the farmers in general and
weaker sections in particular. The study covered four milk unions. Twenty four
villages were selected randomly in the study area. Data were collected through a
survey method and concluded that landless labour earned as much as 20 to 30 percent
of their total income from dairying
29. . Maslow’s (1954) traditionalist views of job satisfaction were based on his five-tier
model of human needs. At the lowest tier, basic life sustaining needs such as water,
food, and shelter were identified. The next level consisted of physical and financial
security, while the third tier included needs of social acceptance, belonging, and love.
The fourth tier incorporated self-esteem needs and recognition by one’s peers and at
the top of the pyramid was reserved for self-actualization needs such as personal
autonomy and self-direction. According to Maslow, the needs of an individual exist in
a logical order and that the basic lower level needs must be satisfied before those at
higher levels.
 CHAPTER III

RESEARCH METHODOLOGY

METHODLOGY OF THE STUDY

After the objective of the study has clearly stated, the next step in formal research
project is to determine the source from which the data is required to be collected. The data
collection is an interesting aspect of the study achieving data effectively the information
consists of two types of data. The diagram is as follows:
RESEARCH DESIGN:
A Research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the Research purpose with economy in 18
procedures.
In fact the Research design is the conceptual structure within which Research is conducted: it
constitutes the blueprint for the collection measurement and analysis of data. It must be able
to define clearly what he wants to measure and must find adequate methods for measuring it
along with a clearly cut definition of population he wants to study.
Since the aim is to obtain complete and accurate information in the said studies, the
procedure to be used must be carefully planned. The research design must make enough
provision for protection against bias and must maximize reliability with due concern for the
economical completion of the research study.
Descriptive research is adopted for this study. It includes surveys and fact finding enquires of
different kinds. The major purpose of descriptive research is description of the state of affairs
as it exists at present. The main characteristic of this method is that the researcher has no
control over the variables. He can only report what has happened or what is happened.
SAMPLING DESIGN
A sample design is a definite plan for obtaining a sample from the sampling frame, it refers to
the technique or procedure the researcher would adopt in selecting some sampling units from
which inferences about the population is drawn.
POPULATION
A decision has to be taken concerning a sampling unit before selecting sample. The
population for this study includes the employees from three branches of SOUTH INDIA
SPINNING MILLS AT ERODE
SAMPLE SIZE

The total populations of SOUTH INDIA SPINNING MILLS AT ERODE are 120.All 100
employees were undertaken for the study. In this study the population and sample are equal.
DATA COLLECTION
The task of data collection begins after a research problem has been defined and research
design / plan chalked out. While deciding about the method of data collection to be used for
the study, the researcher should keep in mind two types of data viz
 Primary and
 Secondary

PRIMARY DATA
The primary data are those which are collected afresh and for the first time and thus happen
to be original in character. The tool used for collecting primary data is a structured
questionnaire.
SECONDARY DATA
The secondary data on the other hand are those which have already been collected by
someone else and which have already been passed through the statistical process. The
secondary data has been collected from the company records, journals. The secondary data
collected for this research was obtained from journals, magazines, company reports and
websites
STATISTICAL TOOLS
 Chi – square test
 Percentage analysis
 Weighted average ranking method
CHAPTER IV
DATA ANALYISIS AND INTERPRETTION
TABLE 4.1
GENDER OF THE RESPONDENT
GENDER
Frequenc Percent Valid Cumulative
y Percent Percent
male 66 55.0 55.0 55.0
Valid female 54 45.0 45.0 100.0
Total 120 100.0 100.0

INTERPRETATION
The above table it is clear that the 55.0% of the respondent are male and 45.0% of the
respondent is female.

CHART 4.1
GENDER OF THE RESPONDENT
TABLE 4.2
AGE OF THE RESPONDENT
AGE
Frequenc Percent Valid Cumulative
y Percent Percent
20-30 19 15.8 15.8 15.8
31-40 45 37.5 37.5 53.3
Valid 41-50 28 23.3 23.3 76.7
51-60 28 23.3 23.3 100.0
Total 120 100.0 100.0

INTERPRETATION
The above table it is clear that the 15.8% of the respondent are aged between20-
30,37.5% of the respondent are aged between 31-40,23.3% of the respondent are aged
between 41-50,23.3% of the respondent are aged between 51-60.
CHART 4.2
AGE OF THE RESPONDENT

TABLE 4.3
MARITAL STATUS OF THE RESPONDENT
MARITALSTATUS
Frequenc Percent Valid Cumulative
y Percent Percent
married 63 52.5 52.5 52.5
Valid unmarried 57 47.5 47.5 100.0
Total 120 100.0 100.0

INTERPRETATION
 The above table it is clear that the 52.5% of the respondent are married and 47.5% of
the respondent are unmarried.

CHART 4.3
MARITAL STATUS OF THE RESPONDENT

TABLE 4.4
QUALIFICATION OF THE RESPONDENT
QUALIFICATION
Frequenc Percent Valid Cumulative
y Percent Percent
Primary 27 22.5 22.5 22.5
Valid Higher 40 33.3 33.3 55.8
Secondary
 Graduate 35 29.2 29.2 85.0
post graduate 18 15.0 15.0 100.0
Total 120 100.0 100.0

INTERPRETATION
The above table it is clear that the 22.5% of the respondent are qualified in
primary,33.3 of the respondent are hsc,29.2% of the respondent are qualified in graduate and
15.0% of the respondent are post graduate.
CHART 4.4
QUALIFICATION OF THE RESPONDENT

TABLE 4.5
SALARY OF THE RESPONDENT
SALARY
 Freque Percent Valid Cumulative
ncy Percent Percent
below-10000 21 17.5 17.5 17.5
10000-20000 21 17.5 17.5 35.0
20000-30000 29 24.2 24.2 59.2
Valid
30000-40000 23 19.2 19.2 78.3
above-50000 26 21.7 21.7 100.0
Total 120 100.0 100.0

INTERPRETATION
The above table it is clear that the 17.5% of the respondent are below 10000 and
17.5% of the respondent are 10000-20000,24.2% of the respondent are 20000-30000,19.2%
of the respondent are 30000-40000,21.7% of the respondent are above 50000.

CHART 4.5
SALARY OF THE RESPONDENT
TABLE 4.6
RESON FOR THE RESPONDENT

REASONFORCONDUCTING
 Frequenc Percent Valid Cumulative
y Percent Percent
to identify motivating 32 26.7 26.7 26.7
methods
to decide monetary 28 23.3 23.3 50.0
benefits
Valid
indentifying barriers of 31 25.8 25.8 75.8
performance
all of the above 29 24.2 24.2 100.0
Total 120 100.0 100.0

INTERPRET
The above table it is clear that the 26.7% of the respondent are the reason
conducting for performance appraisal is to identify motivating methods and 23.3% of the
respondent are to decide monetary benefits,25.8% of the respondent are indentifying
barriers of performance,24.2% of the respondent are all of the above.
CHART 4.6
REASON FOR THE RESPONDENT
TABLE 4.7
CONDUCTED DURING WORKING HOURS
PERFORMANCEAPPRAISAL
Frequenc Percent Valid Cumulative
y Percent Percent
During working hours 58 48.3 48.3 48.3
During non-working 62 51.7 51.7 100.0
Valid
hours
Total 120 100.0 100.0

INTERPRETATION
The above table it is clear that the 48.3% of the respondent are conducted
during working hours and 51.7% of the respondent are conducted during non working hour.

CHART 4.7
CONDUCTED DURING WORKING HOURS
TABLE 4.8
EXPERIENCE FOR THE RESPONDENT
EXPERIENCE
Frequenc Percent Valid Cumulative
y Percent Percent
less than 3 years 31 25.8 25.8 25.8
4-8 years 36 30.0 30.0 55.8
Valid 9-15 years 19 15.8 15.8 71.7
more than 15 years 34 28.3 28.3 100.0
Total 120 100.0 100.0

INTERPRETATION
The above table it is clear that the 25.8% of the respondent are working as less
than 3 years, 30.0%of the respondent are working as 4-8 years,15.8% of the respondent are
working as 9-15 years,28.3% of the respondent are working as more than 15 years.

CHART 4.8
EXPERIENCE FOR THE RESPONDENT
TABLE 4.9
APPRAISAL TAKE PLACE FOR RESPONDENT
PERFORMANCEAPPRAISALTAKESPLACE
Frequenc Percent Valid Cumulative
y Percent Percent
once a year 38 31.7 31.7 31.7
twice a year 47 39.2 39.2 70.8
Valid no specific 35 29.2 29.2 100.0
time
Total 120 100.0 100.0

INTERPRETATION
The above table it is clear that the 31.7 of the respondent are says that appraisal
take the place for once a year,39.2% of the respondent are says that appraisal take the place
for twice a year,29.2% of the respondent are says that appraisal take the place for no specific
time.

CHART 4.9
APPRAISAL TAKE PLACE FOR THE RESPONDENT
TABLE 4.10
WHICH METHOD OF PERFORMANCE APPRAISAL IS IMPLEMENTED IN THE
ORGANIZATION
Frequenc Percent Valid Cumulative
y Percent Percent
merit 31 25.8 25.8 25.8
grading 51 42.5 42.5 68.3
Valid
other 38 31.7 31.7 100.0
Total 120 100.0 100.0

INTERPRETATION
The above table it is clear that the 25.8% of the respondent are says that
method of performance appraisal is implemented in the organization at merit, 42.5% of the
respondent are says that method of performance appraisal is implemented in the organization
at grading, 31.7 of the respondent are says that method of performance appraisal is
implemented in the organization at others.
CHART 4.10
WHICH METHOD OF PERFORMANCE APPRAISAL IS IMPLEMENTED IN THE
ORGANIZATION

TABLE 4.11
THINK PERFORMANCE APPRAISAL HELPS PEOPLE SET AND ACHIEVE
MEANINGFUL GOAL

Frequenc Percent Valid Cumulative

y Percent Percent
yes 64 53.3 53.3 53.3
Valid no 56 46.7 46.7 100.0
Total 120 100.0 100.0
INTERPRETATION
The above table it is clear that the 53.3% of the respondent are achieves the
goal and 46.7% of the respondent are not achieve the goal.

CHART 4.11
THINK PERFORMANCE APPRAISAL HELPS PEOPLE SET AND ACHIEVE
MEANINGFUL GOAL
TABLE 4.12
DO YOU RECEIVE ANY INCREMENT IN YOUR SALARY AFTER
PERFORMANCE APPRAISAL

Frequenc Percent Valid Cumulative

y Percent Percent
yes 57 47.5 47.5 47.5
Valid no 63 52.5 52.5 100.0
Total 120 100.0 100.0

INTERPRETATION
The above table it is clear that the 47.5% of the respondent are agree with the
receive any increment in your salary after Performance Appraisal performing base increment
and 52.5% of the respondent are disagree with the receive any increment in your salary after
Performance Appraisal performing base increment
CHART 4.12
DO YOU RECEIVE ANY INCREMENT IN YOUR SALARY AFTER
PERFORMANCE APPRAISAL PERFORMING BASE INCREMENT
TABLE 4.13
DO YOU THINK THAT PERFORMANCE OF EMPLOYEES IMPROVE AFTER
PROCESS OF PERFORMANCE APPRAISAL

Frequenc Percent Valid Cumulative

y Percent Percent
yes 56 46.7 46.7 46.7
Valid no 64 53.3 53.3 100.0
Total 120 100.0 100.0

INTERPRETATION
The above table it is clear that the46.7% of the respondent are agree with t
Performance of employees improve after process of performance Appraisal, 53.3% of the
respondent are agree with Performance of employees improve after process of performance
Appraisal .

CHART 4.13
DO YOU THINK THAT PERFORMANCE OF EMPLOYEES IMPROVE AFTER
PROCESS OF PERFORMANCE APPRAISAL
TABLE 4.14
DO YOU THINK PERFORMANCE APPRAISAL IMPROVES MOTIVATION AND
JOB SATISFACTION?

Frequenc Percent Valid Cumulative

y Percent Percent
yes 54 45.0 45.0 45.0
Valid no 66 55.0 55.0 100.0
Total 120 100.0 100.0

INTERPRETATION
 The above table it is clear that the 45.0% of the respondent are motivation and
job satisfaction for our organization, 55.0% of the respondent are not motivated the
organization.

CHART 4.14
DO YOU THINK PERFORMANCE APPRAISAL IMPROVES MOTIVATION AND
JOB SATISFACTION?
TABLE 4.15
YOUR OPINION PERFORMANCE APPRAISAL SYSTEM OF YOUR
ORGANIZATION IS RELATED TO WHICH OF THE FOLLOWING

PERFORMANCEAPPRAISALSYSTEM
Frequenc Percent Valid Cumulative
y Percent Percent
Retention of 29 24.2 24.2 24.2
employees
Recruitment system 36 30.0 30.0 54.2
Valid Organizational 28 23.3 23.3 77.5
culture
Motivational 27 22.5 22.5 100.0
Total 120 100.0 100.0

INTERPRETATION
The above table it is clear that the 24.2 % of the respondent are says that your
opinion performance appraisal system of your organization is related to following retention
of employees,30.0 % of the respondent are says that your opinion performance appraisal
system of your organization is related to recruitment system,23.5 % of the respondent are
says that your opinion performance appraisal system of your organization is related to
Organizational culture, 22.5% of the respondent are says that your opinion performance
appraisal system of your organization is related to motivation.
CHART 4.15
YOUR OPINION PERFORMANCE APPRAISAL SYSTEM OF YOUR
ORGANIZATION IS RELATED TO WHICH OF THE FOLLOWING
TABLE 4.16
AFTER PERFORMANCE APPRAISAL IMPROVEMENT IN YOUR
PERFORMANCE

Frequenc Percent Valid Cumulative

y Percent Percent
10-20 40 33.3 33.3 33.3
20-30 45 37.5 37.5 70.8
Valid
30-above 35 29.2 29.2 100.0
Total 120 100.0 100.0

INTERPRETATION
The above table it is clear that the 33.3% of the respondent are says that After
Performance Appraisal improvement in your performance is 10-20 times ,37.5% of the
respondent are says that After Performance Appraisal improvement in your performance is
20-30 times ,29.2% of the respondent are says that After Performance Appraisal
improvement in your performance is above 30 times .
CHART 4.16
SAYS THAT AFTER PERFORMANCE APPRAISAL IMPROVEMENT IN YOUR
PERFORMANCE
TABLE 4.17
PERFORMANCE APPRAISAL SYSTEM IN IMPROVING OVERALL
PERFORMANCE

Frequ Percent Valid Cumulative

ency Percent Percent
highly ineffective 14 11.7 11.7 11.7
ineffective 35 29.2 29.2 40.8
moderate 30 25.0 25.0 65.8
Valid
effective 29 24.2 24.2 90.0
highly effective 12 10.0 10.0 100.0
Total 120 100.0 100.0

INTERPRETATION
The above table it is clear that the 11.7% of the respondent are says that highly
ineffective with the performance appraisal system in improving overall performance ,29.2%
of the respondent are ineffective with the performance appraisal system in improving overall
performance ,25.0% of the respondent are moderate with performance appraisal system in
improving overall performance ,24.2% of the respondent are effective with performance
appraisal system in improving overall performance,10.0% of the respondent are highly
effective with performance appraisal system in improving overall performance

CHART 4.17
PERFORMANCE APPRAISAL SYSTEM IN IMPROVING OVERALL
PERFORMANCE
TABLE 4.18
HOW THE PERFORMANCE APPRAISAL FOLLOWED IN THE ORGANIZATION

Frequen Percent Valid Cumulative

cy Percent Percent
motivate 61 50.8 50.8 50.8
Valid denominative 59 49.2 49.2 100.0
Total 120 100.0 100.0

INTERPRETATION
 The above table it is clear that the 50.8% of the respondent are motivate with
performance appraisal followed in the organization ,49.2% of the respondent are
denominative with the performance appraisal followed in the organization.

CHART 4.18
HOW THE PERFORMANCE APPRAISAL FOLLOWED IN THE ORGANIZATION

TABLE 4.19
PERFORMANCE APPRAISAL HELPS IN THE ASSESSMENT OF INDIVIDUAL
POTENTIAL

Frequenc Percent Valid Cumulative

y Percent Percent
Strongly agree 14 11.7 11.7 11.7
Valid
Agree 32 26.7 26.7 38.3
 Neutral 31 25.8 25.8 64.2
Disagree 27 22.5 22.5 86.7
strongly 16 13.3 13.3 100.0
disagree
Total 120 100.0 100.0

INTERPRETATION
The above table it is clear that the 11.7% of the respondent are says that the
strongly agree with Performance Appraisal helps in the assessment of individual
potential,26.7% of the respondent are says that the agree with Performance Appraisal helps in
the assessment of individual potential ,25.8% of the respondent are says that the
neutral,22.5% of the respondent are says that the disagree,13.3% of the respondent are says
that the strongly disagree with Performance Appraisal helps in the assessment of individual
potential.

CHART 4.19
PERFORMANCE APPRAISAL HELPS IN THE ASSESSMENT OF INDIVIDUAL
POTENTIAL
TABLE 4.20
WHAT TYPES OF ERRORS/PROBLEMS HAVE IMPACT ON PERFORMANCE
RATING IN THE ORGANIZATION?

Frequenc Percent Valid Cumulative

y Percent Percent
Valid Influence 8 6.7 6.7 6.7
 Biased 30 25.0 25.0 31.7
Subjectivity 19 15.8 15.8 47.5
Status effect 28 23.3 23.3 70.8
Attitude 16 13.3 13.3 84.2
Personal 19 15.8 15.8 100.0
grudge
Total 120 100.0 100.0

INTERPRETATION
The above table it is clear that the 6.7% of the respondent are says that Influence
types of errors/problems have impact on performance rating in the organization,25.0% of the
respondent are biased What types of errors/problems have impact on performance rating in
the organization,15.8% of the respondent are Subjectivity,23.3% of the respondent are status
effect,13.3% of the respondent are attitude,15.8% of the respondent are personal grudge types
of errors/problems have impact on performance rating in the organization?
.
CHART 4.20
WHAT TYPES OF ERRORS/PROBLEMS HAVE IMPACT ON PERFORMANCE
RATING IN THE ORGANIZATION?
CHI-SQUARE TEST
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
AGE * 120 100.0% 0 0.0% 120 100.0%
PERFORMANCERAT
ING

AGE * PERFORMANCERATING Crosstabulation

Count
PERFORMANCERATING Total
Influenc Biased Subjectivit Status Attitude Personal
e y effect grudge
20-30 1 4 3 5 3 3 19
31-40 3 13 5 10 5 9 45
AGE
41-50 2 5 7 3 4 7 28
51-60 2 8 4 10 4 0 28
Total 8 30 19 28 16 19 120

Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 13.892a 15 .534
Likelihood Ratio 18.197 15 .252
Linear-by-Linear 1.035 1 .309
Association
N of Valid Cases 120
a. 15 cells (62.5%) have expected count less than 5. The
minimum expected count is 1.27.

Symmetric Measures
Value Approx.
Sig.
Nominal by Contingency .322 .534
Nominal Coefficient
N of Valid Cases 120
CORRELATION METHOD
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
EXPERIENCE * 120 100.0% 0 0.0% 120 100.0%
IMPLEMENTEDTHE
ORGANIZATION

EXPERIENCE * IMPLEMENTEDTHEORGANIZATION
Crosstabulation
Count
IMPLEMENTEDTHEORGANI Total
ZATION
merit grading other
less than 3 years 13 6 12 31
4-8 years 7 17 12 36
EXPERIEN
9-15 years 5 8 6 19
CE
more than 15 6 20 8 34
years
Total 31 51 38 120

Symmetric Measures
Value Asymp. Std. Approx. Approx.
Errora Tb Sig.
Nominal by Contingency .302 .062
Nominal Coefficient
Interval by .026 .092 .284 .777c
Pearson's R
Interval
Spearman .023 .096 .250 .803c
Ordinal by Ordinal
Correlation
N of Valid Cases 120
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.
ONE WAY ANOVA
ANOVA
INCREMENTSALARY
Sum of df Mean F Sig.
Squares Square
Between 3.614 4 .904 3.949 .005
Groups
Within Groups 26.311 115 .229
Total 29.925 119

Multiple Comparisons
Dependent Variable: INCREMENTSALARY
Tukey HSD
(I) (J) Mean Std. Error Sig. 95% Confiden
INDIVIDUALPOTENTI INDIVIDUALPOTENTI Difference (I- Lower U
AL AL J) Bound
Agree -.45089* .15327 .032 -.8757
Neutral -.56682* .15402 .003 -.9937
Strongly agree
Disagree -.37566 .15753 .127 -.8123
strongly disagree -.23214 .17505 .676 -.7173
Strongly agree .45089* .15327 .032 .0261
Neutral -.11593 .12054 .872 -.4500
Agree
Disagree .07523 .12499 .975 -.2712
strongly disagree .21875 .14646 .569 -.1872
Strongly agree .56682* .15402 .003 .1399
Agree .11593 .12054 .872 -.2182
Neutral
Disagree .19116 .12591 .553 -.1578
strongly disagree .33468 .14724 .161 -.0734
Strongly agree .37566 .15753 .127 -.0609
Agree -.07523 .12499 .975 -.4217
Disagree
Neutral -.19116 .12591 .553 -.5401
strongly disagree .14352 .15091 .876 -.2747
Strongly agree .23214 .17505 .676 -.2530
Agree -.21875 .14646 .569 -.6247
strongly disagree
Neutral -.33468 .14724 .161 -.7428
Disagree -.14352 .15091 .876 -.5618
*. The mean difference is significant at the 0.05 level.

INCREMENTSALARY
Tukey HSDa,b
INDIVIDUALPOTE N Subset for alpha =
NTIAL 0.05
1 2
Strongly agree 14 1.1429
strongly disagree 16 1.3750 1.3750
Disagree 27 1.5185 1.5185
Agree 32 1.5938
Neutral 31 1.7097
Sig. .084 .157
Means for groups in homogeneous subsets are
displayed.
a. Uses Harmonic Mean Sample Size = 21.324.
b. The group sizes are unequal. The harmonic mean of
the group sizes is used. Type I error levels are not
guaranteed.

CHAPTER V
FINDING, SUGGESTION AND CONCLUSION

FINDING:
 Majority of55.0% of the respondent are male.
 Majority of 15.8% of the respondent are aged between20-30,37.5% of the respondent
are aged between 31-40.
 Majority of 52.5.0% of the respondent are married .
 Majority of 22.5% of the respondent are qualified in primary,33.3 of the respondent
are hsc,29.2% of the respondent are qualified in graduate.
 Majority of1 7.5% of the respondent are below 10000 and 17.5% of the respondent
are 10000-20000,24.2% of the respondent are 20000-30000.
 Majority of 26.7% of the respondent are the reason conducting for performance
appraisal is to identify motivating methods and 23.3% of the respondent are to decide
 monetary benefits,25.8% of the respondent are indentifying barriers of performance.
 Majority of 48.3% of the respondent are conducted during working hours and 51.7%
of the respondent are conducted during non working hour.
 Majority of 25.8% of the respondent are working as less than 3 years,30.0%of the
respondent are working as 4-8 years..
 Majority of 31.7 of the respondent are once a year,39.2% of the respondent are twice
a year.
 Majority of 25.8% of the respondent are merit ,42.5% of the respondent are grading.
 Majority of 53.3% of the respondent are achieve the goal and 46.7% of the respondent
are not achieve the goal.
 Majority of 47.5% of the respondent are performing base increment and 52.5% of the
respondent are not increment.
 Majority of 46.7% of the respondent are proving the after performance, 53.3% of the
respondent are not improve our performance.

 Majority of45.0% of the respondent are motivation and job satisfaction for our
organization, 55.0% of the respondent are not motivated the organization.
 Majority of 14.2% of the respondent are retention of employees, 19.2% of the
respondent are recruitment system, 24.2% of the respondent are Organizational
culture.
 Majority of 33.3% of the respondent are performance is 10-20, 37.5% of the
respondent are after performance is 20-30.
 Majority of 11.7% of the respondent are highly ineffective, 29.2% of the respondent
are ineffective, 25.0% of the respondent are moderate
 Majority of 50.8% of the respondent are motivate.
 Majority of 11.7% of the respondent are says that the strongly agree, 26.7% of the
respondent are says that the agree, 25.8% of the respondent are says that the neutral.
 Majority of 6.7% of the respondent are Influence, 25.0% of the respondent are biased,
15.8% of the respondent are Subjectivity, 23.3% of the respondent are status effect.

SUGGESTION
As per the study the following are the suggestions:
  The Performance Appraisal in the organization should be in a full fledge way so that
the others will be accepting this.
 As the Performance Appraisal is helpful to the employees by the assignment of
superiors task by training & development which should be more effective so that the
other employees will also be attracted.
 The Performance Appraisal should be assist effectively to the employees as it
recognizes the competence and potential of an individual.
 Employee’s appraisal should be fairly done according to the companies policies so
that it will assist the performance of the employees.
 The company should give some advises and suggestions to the employees during the
process and should get there feedbacks about the process.
 The employees should assess and appraised by their HOD once in a year.

CONCLUSION
The options required strong motivation to face the challenges. Proper training
and satisfaction at all levels will be the strongest foundation to launch an assault on the
challenges and convert the challenges to opportunities through effective performance
appraisal measures in the organization. Industry most response likewise. In future
performance appraisal measures will have to be planned in relation to the changes taking
place. The performance measures leads exist both at fresh entry level as well as to continuing
education level for working personnel.
BIBLIOGRAPHY
Books:
 Donald L. Kirkpatrick, 2006, Improving Employee Performance through Appraisal
and Coaching.
 Richard Rudman, 2003, Performance Planning and Review.
 Roger E. Herman, 1997, The Process of excelling, oak Hill press.
  P. Subba Rao, 2006, Essentials of Human Resource Management and Industrial
Relations, Himalaya Publishing House.

Journals:
 Gitam Journal of Management.
 Journal of Occupational and Environmental medicine.
 Indian Journal of Social Work.
 Indian Journal of Human Resource.
Website
www.scribed.com
www.wikipedia.com
www.xenonauto.in
www.google.com

ANNEXURE

A STUDY ON PERFORMANCE APPRAISAL SYSTEM SOUTH INDIA SPINNING

MILLS AT ERODE

QUESTIONNAIRES
1. Name
2. Gender
a) Male
b) Female

3. Age group:
a) 20 – 30
b) 31 – 40
c) 41 – 50
d) 51 – 60

4. Marital status
a) Married
 b) Unmarried

5. Qualification
a) Primary
b) Higher Secondary
c) Graduate
d) Post Graduate

6. Salary of the respondent

a) Below 10000
b) 10000-20000
c) 20000-30000
d) 30000-40000
e) Above 50000

7. What is the reason for conducting performance appraisal in your organization?

a. to identify motivating methods

b. to decide monetary benefits
c. indentifying barriers of performance
d. all of the above

8. When is the performance appraisal conducted?

a) During working hours

b) During non-working hours

9. Experience:
a) Less than 3 years
b) 4-8 Years
c) 9 – 15 Years
d) More than 15 Years
10. How many times dose performance appraisal takes place in your organization?
a) Once a year
b) Twice a year
c) No specific time

11. Which method of performance appraisal is implemented in the organization?

a) Merit
b) Grading
c) Other
12. Do you think performance appraisal helps people set and achieve meaningful goal.
a) Yes
b) No

13. Do you receive any increment in your salary after Performance Appraisal
a) Yes
b) No
14 .Do you think that Performance of employees improve after process of performance
Appraisal?
a) Yes
b) No
15. Do you think Performance Appraisal improves motivation and job Satisfaction.
a) Yes
b). No

16. In your opinion performance appraisal system of your organization is related to which of
the following?
a) Retention of employees
b) Recruitment system
c) Organizational culture
d) Motivational
17. After Performance Appraisal improvement in your performance.
a) 10-20
b) 20-30
c) 30-above
18. In general how effective has your organization performance appraisal system in
improving overall performance
a) Highly ineffective
b) ineffective
c) Moderate
d) Effective
e) Highly effective

19. How the performance appraisal followed in the organization?

a) Motivate
b) Denominative
20. Is Performance Appraisal helps in the assessment of individual potential?
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) strongly disagree
21. What types of errors/problems have impact on performance rating in the organization?

a) Influence
b) Biased
c) Subjectivity
d) Status effect
e) Attitude
f) Personal grudge