CHAPTER NO. Topic PAGE NO.

Chapter 1 INTRODUCTION
1.1)Introduction to the Industry
1.2)Introduction to the Company
1.3)Introduction to the Topic

Chapter 2 LITERATURE REVIEW

Chapter 3 RESEARCH METHODOLOGY

3.0) Research Methodology
3.1) Conceptualization
3.2) Significance of the Study
3.3) Objectives of the Study
3.4) Scope of the Study
3.5) Research Design
3.6) Collection of data

3.7) Sources of data collection

3.8) Sampling Technique
3.9) Analytical tool used in study
3.10) Limitations of study

Chapter 4 DATA ANALYSIS AND

INTERPRETATION
SWOT Analysis
Questionnaire Analysis

Chapter 5 FINDINGS, SUGGESTION &

CONCLUSION
5.1) Findings

5.2) Conclusion & Suggestion

Bibliography

1
 INTRODUCTION TO THE INDUSTRY

Performance Appraisal is the systematic evaluation of the performance of employees and to

understand the abilities of a person for further growth and development. Performance
appraisal is generally done in systematic ways which are as follows:

 The supervisors measure the pay of employees and compare it with targets and plans.
 The supervisor analyses the factors behind work performances of employees.
 The employers are in position to guide the employees for a better performance.

Objectives of Performance Appraisal

 To maintain records in order to determine compensation packages, wage structure, salaries
raises, etc.
 To identify the strengths and weaknesses of employees to place right men on right job.
 To maintain and assess the potential present in a person for further growth and development.
 To provide a feedback to employees regarding their performance and related status.
 To provide a feedback to employees regarding their performance and related status.
 It serves as a basis for influencing working habits of the employees.
 To review and retain the promotional and other training programmes.

Advantages of Performance Appraisal

 Promotion: Performance Appraisal helps the supervisors to chalk out the promotion
programmes for efficient employees. In this regards, inefficient workers can be dismissed or
demoted in case.
 Compensation: Performance Appraisal helps in chalking out compensation packages for
employees. Merit rating is possible through performance appraisal. Performance Appraisal
tries to give worth to a performance. Compensation packages which includes bonus, high
salary rates, extra benefits, allowances and pre-requisites are dependent on performance
appraisal. The criteria should be merit rather than seniority.
 Employees Development: The systematic procedure of performance appraisal helps the
supervisors to frame training policies and programmes. It helps to analyse strengths and
weaknesses of employees so that new jobs can be designed for efficient employees. It also
helps in framing future development programmes.

2
 Selection Validation: Performance Appraisal helps the supervisors to understand the validity
and importance of the selection procedure. The supervisors come to know the validity and
thereby the strengths and weaknesses of selection procedure. Future changes in selection
methods can be made in this regard.
 Communication: For an organization, effective communication between employees and
employers is very important. Through performance appraisal, communication can be sought
for in the following ways:

Through performance appraisal, the employers can understand and accept skills of
subordinates.

The subordinates can also understand and create a trust and confidence in superiors.

It also helps in maintaining cordial and congenial labour management relationship.

It develops the spirit of work and boosts the morale of employees.

All the above factors ensure effective communication

 Motivation: Performance appraisal serves as a motivation tool. Through evaluating

performance of employees, a person‘s efficiency can be determined if the targets are
achieved. This very well motivates a person for better job and helps him to improve his
performance in the future.

1. Ranking

2. Paired Comparison

3. Forced Distribution

4. Confidential Report

5. Essay Evaluation

6. Critical Incident

7. Checklists

8. Graphic Rating Scale

9. BARS

10. Forced Choice Method

3
11. MBO

12. Field Review Technique

13. Performance Test

Tools and techniques

1. Ranking Method

The ranking system requires the rater to rank his subordinates on overall performance. This
consists in simply putting a man in a rank order. Under this method, the ranking of an
employee in a work group is done against that of another employee. The relative position of
each employee is tested in terms of his numerical rank. It may also be done by ranking a
person on his job performance against another member of the competitive group.

Advantages of Ranking Method

i. Employees are ranked according to their performance levels.

ii. It is easier to rank the best and the worst employee.

Limitations of Ranking Method

iii. The ―whole man‖ is compared with another ―whole man‖ in this method. In practice,
it is very difficult to compare individuals possessing various individual traits.

iv. This method speaks only of the position where an employee stands in his group. It
does not test anything about how much better or how much worse an employee is when
compared to another employee.

v. When a large number of employees are working, ranking of individuals become a

difficult issue.

vi. There is no systematic procedure for ranking individuals in the organization. The
ranking system does not eliminate the possibility of snap judgements.

2. Forced Distribution method

This is a ranking technique where raters are required to allocate a certain percentage of rates
to certain categories (eg: superior, above average, average) or percentiles (eg: top 10
percent, bottom 20 percent etc). Both the number of categories and percentage of employees

4
to be allotted to each category are a function of performance appraisal design and format.
The workers of outstanding merit may be placed at top 10 percent of the scale, the rest may
be placed as 20 % good, 40 % outstanding, 20 % fair and 10 % fair.

Advantages of Forced Distribution

i. This method tends to eliminate raters bias

ii. By forcing the distribution according to pre-determined percentages, the problem of

making use of different raters with different scales is avoided.

Limitations of Forced Distribution

iii. The limitation of using this method in salary administration, however, is that it may
lead low morale, low productivity and high absenteeism.

Employees who feel that they are productive, but find themselves in lower grade(than
expected) feel frustrated and exhibit over a period of time reluctance to work.

3. Critical Incident techniques

Under this method, the manager prepares lists of statements of very effective and ineffective
behaviour of an employee. These critical incidents or events represent the outstanding or
poor behaviour of employees or the job. The manager maintains logs of each employee,
whereby he periodically records critical incidents of the workers behaviour. At the end of
the rating period, these recorded critical incidents are used in the evaluation of the worker‘s
performance. Example of a good critical incident of a Customer Relations Officer is : March
12 - The Officer patiently attended to a customers complaint. He was very polite and prompt
in attending the customers problem.

Advantages of Critical Incident techniques

i. This method provides an objective basis for conducting a thorough discussion of an

employees performance.

ii. This method avoids recency bias (most recent incidents are too much emphasized)

Limitations of Critical Incident techniques

iii. Negative incidents may be more noticeable than positive incidents.

5
iv. The supervisors have a tendency to unload a series of complaints about the incidents
during an annual performance review sessions.

v. It results in very close supervision which may not be liked by an employee.

vi. The recording of incidents may be a chore for the manager concerned, who may be
too busy or may forget to do it.

4. Checklists and Weighted Checklists

In this system, a large number of statements that describe a specific job are given. Each
statement has a weight or scale value attached to it. While rating an employee the supervisor
checks all those statements that most closely describe the behaviour of the individual under
assessment. The rating sheet is then scored by averaging the weights of all the statements
checked by the rater. A checklist is constructed for each job by having persons who are
quite familiar with the jobs. These statements are then categorized by the judges and
weights are assigned to the statements in accordance with the value attached by the judges.

Advantages of Checklists and Weighted Checklists

i. Most frequently used method in evaluation of the employees performance.

Limitations of Checklists and Weighted Checklists

ii. This method is very expensive and time consuming

iii. Rater may be biased in distinguishing the positive and negative questions.

iv. It becomes difficult for the manager to assemble, analyze and weigh a number of
statements about the employees characteristics, contributions and behaviours.

Performance Appraisal Biases

Managers commit mistakes while evaluating employees and their performance. Biases and
judgment errors of various kinds may spoil the performance appraisal process. Bias here
refers to inaccurate distortion of a measurement. These are:

First Impression (primacy effect): Raters form an overall impression about the ratee on the
basis of some particluar characteristics of the ratee identified by them. The identified
qualities and features may not provide adequate base for appraisal.

6
 Halo Effect: The individual‘s performance is completely appraised on the basis of a
perceived positive quality, feature or trait. In other words this is the tendency to rate a man
uniformly high or low in other traits if he is extra-ordinarily high or low in one particular
trait. If a worker has few absences, his supervisor might give him a high rating in all other
areas of work.
 Horn Effect: The individual‘s performance is completely appraised on the basis of a
negative quality or feature perceived. This results in an overall lower rating than may be
warranted. ―He is not formally dressed up in the office. He may be casual at work too!‖.
 Excessive Stiffness or Lenience: Depending upon the raters own standards, values and
physical and mental makeup at the time of appraisal, ratees may be rated very strictly or
leniently. Some of the managers are likely to take the line of least resistance and rate people
high, whereas others, by nature, believe in the tyranny of exact assessment, considering
more particularly the drawbacks of the individual and thus making the assessment
excessively severe. The leniency error can render a system ineffective. If everyone is to be
rated high, the system has not done anything to differentiate among the employees.
 Central Tendency: Appraisers rate all employees as average performers. That is, it is an
attitude to rate people as neither high nor low and follow the middle path. For example, a
professor, with a view to play it safe, might give a class grade near the equal to B, regardless
of the differences in individual performances.
 Personal Biases: The way a supervisor feels about each of the individuals working under
him - whether he likes or dislikes them - as a tremendous effect on the rating of their
performances. Personal Bias can stem from various sources as a result of information
obtained from colleagues, considerations of faith and thinking, social and family
background and so on.
 Spillover Effect: The present performance is evaluated much on the basis of past
performance. ―The person who was a good performer in distant past is assured to be okay at
present also‖.
 Recency Effect: Rating is influenced by the most recent behaviour ignoring the commonly
demonstrated behaviours during the entire appraisal period.

Communicating Performance Appraisals

Performance appraisals enable superiors to know what their team members are upto,
evaluate their performances and also give them correct feedbacks so that they know where
they are lacking and work on their shortcomings.

7
The term ―Performance Appraisal‖ generally causes anxiety among employees, which
definitely should not be the case. You really do not have to worry about your appraisal if
you have worked hard throughout the year.

There is definitely a certain way appraisals need to be communicated among employees.

There are organizations where management tends to create unnecessary hype about
performance appraisal. In such a scenario, trust me, employees think only about their
appraisals and find it extremely difficult to concentrate on their routine affairs. The appraisal
process certainly should not disturb your daily schedule.

Let us understand how performance appraisal needs to be communicated among employees.

The rating procedure, appraisal form or any other related information ought to be sent to
each and every individual separately. Do not mark a common mail to everyone. If you do
not want to take the pain of sending separate mails to everyone, create a common login id
where each and every individual can register using their passwords and pull out the
appraisal form. The appraisal form generally has information about employee‘s designation,
grade, level in the hierarchy, responsibilities and thus must be kept confidential.

Counselling needs to be done on a one on one basis. Address their queries, confusions in
private. Remember, appraisal is a very sensitive subject and should be handled gracefully.
Call the employees one by one either in your cabin or conference room and try to find out if
they need any help or guidance. Trust me, if you call them in a group, they would never
open up. It is unethical to discuss one‘s performance or salary in public.

Once the appraisals are done, communicating the same to the employees is another big
challenge. The increment letters or appraisal letters should be handed over to the employees
either by the functional head or human resource team personally.Do not ask your office
peon to distribute the letters. Trust me, it is very insulting. You are not doing any charity. It
is their right.

Employee attrition is one of the major problems faced by organizations after performance
appraisal. Employees who work only for money quit after a salary hike to negotiate further
with any other organization. Individuals who do not get satisfactory appraisal in any case
get demotivated and look for a change. Any employee who does not agree to his/her
appraisal or feel has not got what he/she deserves needs to be addressed at the earliest. Sit
with the individual concerned and try to make him/her understand as to why he/she has got
a certain rating. Employees cannot always be wrong. If you feel, an employee deserves
8
 slightly more than what he has got, kindly reconsider your decision. Remember, it is always
better to give a decent salary hike to talented employees than losing them. After all, if they
leave, you in any case have to spend time and energy searching for a replacement.

Employees need to be motivated after their appraisals. Congratulate each and every one
irrespective of their salary hike or promotion. Appreciate everyone for being consistent and
most importantly loyal towards the organization. Make sure no one feels left out. Sit with
them, give them new realistic targets and guide them as to how can they work together,
come out with more innovative ideas and show better performances in the years to come.

Performance appraisal should not be the only method to evaluate or acknowledge

employee‘s performance. Do not be rude to employees who did not perform well. It is
absolutely okay to handhold them and give a second chance.

Handling Employees After Performance Appraisals

Performance appraisal refers to the elaborate process of reviewing one‘s performance and
output over a certain period of time and not only give correct feedbacks but also
acknowledge and appreciate the hard work. Appraisal letters cause a lot of anxiety and
sometimes disappointment among employees. Individuals never create problems when they
get a good salary hike but trust me, handling employees after a bad appraisal is a big
challenge.

Let us go through few tips on how to handle employees after performance appraisals:

 Never forget to congratulate employees who have got a decent appraisal or a promotion and
a positive review from the management. It will further motivate them and also instil a sense
of pride and most importantly responsibility in them. Make them feel important. If someone
has worked really hard all through the year, he/she definitely deserves to be praised for
his/her efforts and encouraged to perform better in the years to come. Celebrate his/her
success.

9
 Employees who had an unsatisfactory year and eventually a bad appraisal are the ones who
need most of your attention and care. One of the most common problems with such
employees is that they suddenly become negative about everything, find reviewing
authorities as their biggest enemies and also start hating their organization. Yes, logically
such a behaviour is not expected out of a mature professional but we can‘t completely blame
the poor individual also who after slogging for a year did not get appraisal as per his/her
expectations.

 As they say ―with a little love, we can even change the world‖. Such employees need to be
handled with utmost patience. Sit with such employees and first of all try to find out as to
why they failed this time. Try to understand their mood and also what they feel about their
appraisal? It is obvious that they would not be in a great mood but as a superior it is your
duty to cheer them up so that they do not lose their confidence and eventually interest in
work and finally quit. Employees also need to understand that there is always a next time
and there is no point reacting and fighting with people around. After all it would not solve
your problem, instead earn you a bad name in the organization.

 Understand where the individual went wrong. All negativities and confusions would
disappear if you make the individual understand where all he/she lacked and why his
counterpart has got a decent appraisal while he/she has not? Yes, employees at this point of
time are really not in a mood to listen to their superiors but you have to assure them that as a
Boss, you are always there with them and would certainly help in future as well. Understand
if at all the individual is facing any problem or not and most importantly try to provide a
solution. Yes, after a bad appraisal, employees tend to become negative but as a Boss it is
your responsibility to change their perception.

 Let them speak and come out with their frustrations. Employees should also be careful with
their words. Never cross your limits. Handhold such employees and provide necessary
guidance whenever required. Send them a motivational email. Such small initiatives go a
long way in motivating employees so that they become a little more serious and come back
with a bang. Make them understand that this is just a temporary phase and should not act as

10
a demotivating factor for them. Encourage them to work in unison with their fellow
workers, read a lot and most importantly believe in the organization and its process.

11
 INTRODUCTION TO THE COMPANY

Century Pulp and Paper (CPP) is a producer of excellent quality writing and printing paper,
and a leading manufacturer of tissue and board, as well as Rayon Grade Pulp (RGP)
products. A division of Century Textile and Industries Ltd (CTIL), Century Pulp and Paper
has achieved significant efficiencies in various disciplines, all within a short time.

Situated at the foothills of the Himalayas in Lalkua (Nainital), Century Pulp and Paper is a
committed employer of the local community. The company is proud to attain these
international standards as a leading producer of pulp and paper.

COMPANY PROFILE

1. LOCATION:
Century Pulp & Paper is situated at Ghanshyamdham PO – Lalkua Distt – Nainital, Uttarakhand
to the north the beautiful city of Chandigarh and Jasola District Center, New Delhiof 1868
revolution in India. It has a large no. of universities all around it. The company is situated
near to the trainer research institute of Delhi University and central pulp and paper research
institute of the company in pulp and paper field.

2. PRODUCT PROFILE:

Century Pulp & Paper range of writing and printing paper is used to produce a wide range
of stationery such as notebooks and envelopes. Entry-level varieties such as creamwove,
maplitho and coated paper are popular. Although the market share of higher-quality paper
has been increasing, the entry-level varieties still form the bulk of demand.

Printing paper is specially designed for printing books, note books, and publishing and
printing due to its uniform, fast ink-trapping and drying qualities, as well as its dimensional
stability.

Demand for paper in this segment depends largely on these factors:

 Population growth

12
 Level of literacy
 Public and private spending on education
 Level of business activity
 Growth in the printing industry.

Copier Paper is typically a white commodity in writing paper grade. Copier Paper now
marketed as multi-purpose paper to be used in most common type of office machines
including photocopiers, computer printing paper and various other printer types.

Copier Paper is of good quality and uniform dimension paper, which is used for
photocopying.

Century manufacture different type of paper used in Industrial use: wide range of packaging,
cardboard, tissue, insulation and wrapping products. Demand for industrial paper is often
affected by these factors:

 Industrial production
 Growth in the packaging industry
 Development in technology
 Substitution by other materials

Capicity:

 650 tonnes per day (TDP)

Features:

 Machine deckle: 3.7 mtr

 GSM Range: 170 to 500
 Machine with double wire to maintain better thickness consistency

Characteristics:

o The board machine has 4 head boxes and 4 wire meshes

o Shoe press removes water from pulp while retaining maximum bulk
o Yankee provides good gloss

13
o In the calendering process, there are soft nips for less bulk loss and increased
smoothness
o Has a well equipped and advanced laboratory with all the latest equipment.
Laboratory testing is done in a temperature and humidity controlled environment, as per
TAPPI.
 A dissolving grade pulp, Rayon Grade Pulp is a highly purified form of cellulose
made from wood and used in a wide variety of consumer applications. Century's Rayon
Grade Pulp is well-accepted due to its high purity, minimal inorganic impurities, good
whiteness and optimal viscosity. Uses of the pulp include Viscose Staple Fiber, Viscose
Filament Yarn (for textiles and non woven products for household, hygiene, medical and
industrial absorbent products) and cellophane papers.
 Rayon grade pulp (RGP) is prepared and supplied to filament yarn manufacturers.
With a total capacity of 3000 MT/month, the majority of pulp is used to make filament fibre,
while the rest of the RGP is used to make staple fibre.

Tissue process

 Set up in 2009, Century is the largest and most advanced manufacturer of Jumbo
Soft Tissue Paper Rolls in India. Spread over 60,000 sq m, its plant houses the state-of-the-
art "Metso Machine with Crescent Former" that produces world-class tissue paper. As a
result, quality standards are consistently high and this contributes to the high hygiene levels
and overall cleanliness AH & AfH.
 Century's commitment to quality has been recognised with international
certifications such as ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007. In
addition, napkins under the Century Pulp & Paper brand are FDA compliant.
 Products: Facial Tissue, Towel Grade Tissue, Napkin Tissue and Toilet Tissue
 Capacity: 100 tonnes per day (TPD)

14
 INTRODUCTION TO PEFORMANCE APPRAISAL

After an employee had been selected for job, has been trained to do it and has worked on it
for a period of time, his performance would be evaluated. Performance evaluation is the
process of deciding their jobs. It fulfils his requirements required by the part of
organization. Merit rating is also termed as performance Appraisal or Employee
Appraisal."Performance appraisal is the process by which are employee's contribution to
the organization during a specified period of time is assessed."
"Performance appraisal is a systematic appraisal of the employee personality traits and
performance on the job and is designed to determine his contribution and relative worth
to the firm".
So we can says that performance appraisal as formal structure of measuring and evaluating
an employee's job deleted behaviour and out comes to discover how and why the employee
is presently performing on the job and how employee can perform more effectively in the
future so that the employee organization and society all benefits.
OBJECTIVES:
Performance appraisal could be taken either for evaluating the performance of the
employees for developing them.
APPRAISAL OF EMPLOYEE SERVES SEVERAL USEFUL PURPOSE:
• Compensation Decision.
• Feedback
• Performance development
• Training and Development Program
• Promotion Decision
• Personal Development
• Improve Supervision.
PERFORMANCE APPRAISAL PROCESS:

 Job Analysis
 Job Description & Job Satisfaction
 Establishing Standard of Performance
 Communicating Performance Standard of Employee
 Measuring actual Performance Comprising Actual Performance with Standard
& Discussing with employees
 Initiating corrective Action, if Necessary
15
ESSENTIAL'S OF GOOD APPRAISAL SYSTEM:

1. Reliability & Validity

2. Job relatedness
3. Standardization
4. Practical Viability
5. Training to appraisers
6. Open Communication
7. Employee access to result
8. Clear Objectives
9. Post appraisal interview
10. Periodic review

WHO WILL APPRAISE:

SUPERVISOR
Supervisor include superior of the employee other Superiors having knowledge about the
work of employee and departmental Head or Manager. The general practical is the
immediate supervisors appraise the performance of the employee.
PEER'S
Peer's appraise may be reliable if the work group is stable over a reasonably. Long period
time and performance task that requires interaction. However little research has been
conducted to determined how peers establish standards for evaluating others or the overall
effect of peer's appraisal on the group. SUBORDINATES
The concept of having superior related by subordinates is being used in most organizations
today, especially in the develop countries. For instant in most U.S. universities students
evaluate a professor performance in classroom.

SELF APPRAISAL
If individual understand the objective they are expected to achieve the standard by which
they are to be evaluated, they are to a great extent to in the best position to appraise their on
performance. Since employees development means self-development, employees who
appraise their own performance they become more highly motivated.

16
USER'S OF SERVICES
Employees performance in services organizations relating to behaviour Promptness speed in
doing the job and accuracy can be better judged by the Consumer or users of services.

CONSULTANT
Sometimes consultant may be engaged for appraisal when employees and employer do not
trust supervisory appraisal. Management does not trust in self-appraisal or peers appraisal or
subordinate appraisal
WHEN TO APPRAISE

11 Informal appraisals are conducted whenever the supervisor or personal manager feels it
necessary. However systematic appraisal are conducted on a regular basis, say for example,
every six month or annually. One study of 244 firms found that appraisal was most often
conducted once a year.

TECHNIQUE OR METHODS OF PERFORMANCE APPRAISAL

TRADITIONAL MODERN
METHOD METHOD

1. Unstructured Method 1. Bars behavioural anchored method

2. Straight ranking method 2. Result oriented appraisal or MBO
3. Paired comparison method 3. Assessment center method
4. Man to man comparison method 4. H.R.M. accounting method
5. Grading method 5. Phychological method
6. Graphic rating method

TRADITIONAL METHOD

1. UNSTRUCTURED METHOD:

In this method the rates has to list his comments especially on qualities, abilities, attitudes,
aptitude and other personal traits of the employees.

17
2. STRAIGHT RANKING METHOD:
In this method evaluator assign relative ranks to all the employees in the same work unit
doing the same job. Employees are ranked from the best to the poorest on the basis of
overall performance.In this method we can only say who is number 1, 2, 3 and so on but
cannot say how much the person at number one is better than at number two.

3. PAIRED COMPARISON METHOD:

Employees of a group are compared with another at one time. If there is a group of five
employees A, B, C, D and E than as performance is compared with that of B's and a
decision is taken as to whose performance is better. Similarly A' s performance is compared
with C,D and E and decision regarding comparatively better performance are taken. The
results of these comparisons are tabulated and a rank is assigned to each employee.
COMPARISON IS BASED ON THE BASIS OF OVERALL PERFORMANCE:
(+) Plus sign means the employees considered better and (-) minus sign means worse than
other employees in pair.

4. GRADING METHOD:
In this method certain categories of worth are determined in advanced and they are
carefully defined:
EXAMPLE:
Grade 'A' for outstanding
Grade 'B' for very good
Grade 'C' for average
Grade 'D' for poor etc.

5. GRAPHIC RATING METHOD:

In this method evaluator is asked to Rate employees on the basis of job related
characteristics and knowledge of job.Printed forms are given. The performance is evaluated
on the basis of these traits on continuous scale.

1. Poor

2. Average

3. Good

18
 MODERN METHOD

1. BEHAVIOURALLY ANCHORED RATING SCALE(BARS):

a) Performance areas of the employees that need to be assessed
are determined and described by the individual who will use the scale.
b) The scales are attached with the explanation of the actual job
behaviour to represent particular level of performance.
c) All the areas of the performance that need to be examined are
based on the observable behaviour and are significant to the
job which is being evaluated because BARS are customize
for the job.
2. RESULT ORIENTED APPRAISAL OF M.B.O.
TECHNIQUE:
To establish the objective by the supervisor each employee should attain that. These
objectives are used to evaluate the performance of each employee in the organization.
STEP 2:
To set the standard for evaluating the performance of the employee.
STEP 3:
To compare the actual level of attained objectives with the objective set by the organization.
Reasons why the objectives were not met and help in determining the need to provide
training to the employee of the organization.

3. ASSESSMENT CENTRE METHOD:

Where assessment of several individuals is done by various experts by using various

techniques.

• The individuals from various departments are brought together to spend two or three days
working on an individual or group assessment similar to the ones they would be handling
when promoted.

• Simulation technique, role-playing business games and in basket exercise.

4. HUMAN RESOURCE ACCOUNTING METHOD:

• HR is valuable sassets of an organization.

• Can be a valued in terms of money.
• When competent and well-trained employees leave an

19
 organization the human asset is decreased & vice versa.
• Deals with cost of and contribution of H.R. of the
organizational.

5. PSYCHOLOGICAL APPRAISAL:
Psychological appraisal are used for evaluation, they assess an individual's future potential
and not past performance. The appraisal normally consists of in-depth interview
psychological test, discussions with supervisor and a review of other evaluations. The
psychologists then writers an evaluation of the employees intellectual, emotional,
motivational and other work-related characteristics that suggest individual potential and may
predict future performance.

PERFORMANCE MANAGEMENT

UNDERSTANDING PERFORMANCE MANAGEMENT SYSTEM:

"Performance management system is a process for establishing shared understanding about

what is to be achieved, and an approach to managing and developing people in a way that
ensure achievement of individual's target and organization objectives".

To Elaborate on the Key Words Used in Definition:

PERFORMANCE MANAGEMENT:
Is a process not just a part of forms, which are routinely completed, or the annual appraisal
ritual or bonus scheme? It is about the everyday actions and behaviour which individual
take to manage performance improvement in themselves and other. It is divorced from the
management processes that prevade the organizational generally.

• Is for establishing a shared understanding about what is to be achieved. To improve

performance of individual needs to have common shared understanding about what
performance in their job look like. Whether it is a set of tasks, objective or result or a set of
behaviour or a combination of both. They need to be defined clearly in agreement with the
job holders so that people know why they are working towards.

• Is An Approach to Managing People:

20
They focus on performance management system is on people. It is about how individual and
team work together and support each other to achieve shared aims. In particular, it puts the
responsibility of managers to work effectively (through coaching and motivating) with these
for whom they are accountable.
• Increases the probability of achieving job related success. Performance Management has a
clear purpose - it is about achieving success in the work palace for individual and
organisation in which they work. It is about achieving wins for everyone.
• By establishing a continuous management process that deliver clarity, support, feedback
and recognition to all, organization take the major step in ensuring significant performance
improvement.
• Performance management system has much potential to change organizations. Effective
performance management can increase motivation, management capabilities, open up
communications, change attitudes and behaviours and create more performance-oriented
culture.
HOW PERFORMANCE MANAGEMENT SYSTEMS IS

DIFFER FROM PERFORMANCE APPRAISAL

The term performance appraisal systems are some time used interchangeably but there is a
difference between them. Performance Management system include Performance Appraisal
as a central part of the process, but Performance appraisal schemes can operate in a manner
which does not exhibit the full characteristics of a performance management system in the
most develop form. Performance Management System:-
• Is concerned with total performance of the organization and
how the result achieved by individual and team contribute to the
performance.

Is Seen as Much More of An Integrating Process:

Integrating corporate, functional, team and individual objectives and linked more closely
with other aspect of human recourse management.
• It is treated as normal process of management, not an
administrative chore imposed by the personal department.
• Concern all member of the organization, asper in the process.
It is not a something handed dawn by bases of subordinates.
• Is concerned as much team performance or individual
performance.
21
• It is continuous process not relying on once a year formal
review.
• Can provide a basis of performance related pay decisions where
such schemes exist.
• Recognize the need for through training in the skills required to
agree objectives, provide feedback, review performance and
coach and counsel employees.
• Overall, attaches much more importance to the 'process' of
forming agreements, managing performance throughout the
year and monitoring and review results.

OBJECTIVES OF THE NEW PERFORMANCE MANAGEMENT

SYSTEM

The new performance management system is being institutionalized at Century Pulp &
Paper's Ltd. augurs a major transaction from the traditional performance appraisal approach
that has been a practice for many years in the company and attempts to balance the
organization & individual objective.The new system is being designed to encourage open,
on goingcommunication and is based on a framework that reduces the degree which the
process is top down process by giving more scope for employees to manage themselves and
encouraging a freer upwardly managed approach. Following are the major objectives of the
new system.

• To provide a framework for systematic planning of performance targets at the beginning

of the year.

• To ensure congruence between individual objectives and organization.

• To ensure objective assessment of performance for the purpose of development.

• To identify gaps in performance for the purpose of development.

• To provide the vital input to the career planning process.

• To focus on the development of the employees by providing feedback and counseling.

• To provide input for determining the compensation and reward

22
As improvement is a condition and gradual process, certain aspect such as 360 degree
feedback for multiple evaluation or dynamic appraisal etc. are not being included in the new
performance management system at this stage. The new performance management system
centres around four major processes.

• Planning Performance.

• Managing Performance.
• Reviewing Performance.
• Rewarding Performance.

23
 LITERATURE REVIEW

2.1 LITERATURE REVIEW

DAVID Cameron, (1981) Performance appraisal and review, sometimes also referred to as
merit rating, staff appraisal, or personnel assessment (although these terms are by no means
synonymous), is a process in which ―bosses‖ regularly evaluate and report on
the performance, attainments, abilities, potential for future development and other qualities
of their organizational subordinates.

David K. Banner, James M. Graber, (1985) the improvement

of performance appraisal systems is a matter of sharing a social definition of
performance appraisal that is congruent with the original intent decided by the organization.
The management development professional can aid the process by being educated
about appraisal systems, analyzing the potential benefits to the organization, and accepting
that all appraisers need training. To help performance appraisal reach its fullest potential,
management development professionals need to be political strategists, appraisal system
experts, trainers, salespeople and catalysts, in combination.

Gregory D. Rankin, Brian H. Kleiner, (1988) There appears to be no one best method
of performance appraisal but there are certain common elements in all effective methods —
clear performance goals, quantified levels of performance must be clear, personal rewards
should be tied to organisational performance, supervisor and employee should identify ways
to improve the latter's performance and implement a plan together, feedback should be
provided to the appraiser, and the system must comply with all legal requirements.

Luis R. Gomez‐Mejia, (1989) the objectives of performance appraisal are outlined, and the
problems with performance evaluation are examined. Race, age and sex discrimination are
discussed in relation to Equal Employment Opportunity Commission guidelines.
A performance appraisal model is laid down with step by step guidelines. The model is
assessed against the key objectives of performance appraisal.

Danielle S. Wiese, M. Ronald Buckley, (1998) the performance appraisal process has been
the focus of much researcher and practitioner attention. In spite of this attention, methods

24
used in performance appraisal are generally ineffective in increasing the quality
of performance appraisal processes. Thus, while performance appraisal processes have
evolved, progress has been less forthcoming. There are many areas related to
the performance appraisal process which are ripe for development and research creativity.

Ronald G. Edwards, Calvin J. Williams, (1998) Performance appraisals generally occur to

provide documentation for current and future personnel decisions such as promotions, salary
increases, staff development, and disciplinary reasons. After surveying library literature, it is
apparent that most academic library administrations implement some type of
performance appraisal, but a disparity exists regarding the process itself, the ultimate goals
sought and those actually achieved. This situation emanates from the lack of objectives
adhered to in conducting performance appraisals. This article will address the diversity
existent in the performance appraisal process and the reasons for these differences.

John P. Wilson, Steven Western, (2000) Describes research conducted into some of the
potential inhibitors which can reduce the effectiveness of a
hospital performance appraisal system in relation to training and development plans. Takes
as its perspective the views of the appraisees which counter the more usual overview
provided by managers and other commentators. Relates these findings to literature on the
subject and concludes that in spite of its limitations the performance appraisal process is
likely to remain. Finally, makes a number of recommendations to improve the process and
make it more supportive of training and development interventions.

LindaS.Pettijohn, R.Stephen Parker, Charles E.Pettijohn, ohn L.Kent,

(2001) Performance appraisals are often described as the ―job managers love to hate‖. A
study was designed to provide sales managers with information designed to increase the
benefits of engaging in the evaluation process and reduce the negative sentiments often
associated with appraisals. To accomplish this objective, 214 salespeople were personally
interviewed and asked to provide information regarding their perceptions of
their performance appraisals. The results indicate that salespeople have positive perceptions
regarding the appraisal process. Findings also indicate that while salespeople are often
evaluated at least twice annually, the criteria used are not always the ones that sales people
view as being the most appropriate. The conclusions derived from the analysis may provide
insight to sales managers as they attempt to develop and implement appraisal processes that

25
are viewed as being valid and as they attempt to enhance the benefits that may be obtained
from engaging in this process.

Steven E.Abraham, Lanny A.Karns, Kenneth Shaw, Manuel A.Mena, (2001) Uses survey
research to investigate two general questions concerning managerial competencies and
performance appraisal: whether a set of managerial competencies currently being used by
organizations to describe successful managers can be identified; and whether organizations
are appraising these same competencies as part of their
managerial performance appraisal processes. The six competencies most often identified as
critical to managerial success appear to be proper choices, given the discussion of the
attributes needed for a competency to be effective. The results also show, however, that
many of these same organizations are not appraising these competencies in their
managerial‐performance appraisal processes. Concludes that failure to appraise the
competencies reduces the effectiveness of the competencies and the
managerial performance appraisal programs.

Larry M. Coutts, Frank W. Schneider, (2004) Constables, sergeants, and staff sergeants
(n=393) representing 15 municipal Canadian police departments completed a survey in
which they reported about their organizations‘ performance appraisal practices. In general,
the officers‘ responses suggested that their organizations‘ performance appraisal systems
were deficient with respect to well‐established key components of performance appraisal.
Most officers indicated that they, for example, had little or no opportunity for input, did not
receive informal feedback on a regular basis, received evaluations that were based on
personal traits (as opposed to performance criteria), and their appraisals did not to lead to
improved job performance or the identification of career development objectives. Also, the
vast majority of officers indicated that supervisors received little or no training. In addition
to emphasizing the need for improved supervisor training, the discussion focused on the
negative consequences of inadequate performance appraisal at the individual level (e.g.
employee development) and the organizational level (e.g. poor utilization of resources and
undermining other systems and organizational change strategies)

Kate Walsh, Dalmar Fisher, (2005) Purpose: Introduces the primary concepts behind the
practice of action inquiry. Then, examines what current literature suggests about

26
components of the performance appraisal process and identifies areas where applying action
inquiry concepts can add a new dimension to our current understanding.
Design/methodology/approach: Applies action inquiry, a concept from the organizational
learning and change literatures, to suggest ways to infuse meaning and mutuality
into appraisal discussions to help organizational leaders and members learn and develop.
Ways to do so are demonstrated through a review and discussion of seven principal research
streams in the current appraisal literature.
Findings: An action inquiry approach can address many of the limitations inherent in
the appraisal process and refocus appraisals as developmental tools.
Potentially, appraisals can act as forums to open dialogue, invite participation and build
relationships around re‐visioning one's work and career. The process can become
instrumental to continual quality improvement and organizational growth suggests that a
rich opportunity exists to make the performance appraisal process developmentally
meaningful for individuals and potentially transformative for organizations.
Originality/value: Discusses seven themes addressed in performance appraisal research and
poses new possibilities that emerge when these themes are examined through an action
inquiry lens.

Mike Millmore, David Biggs, Laura Morse, (2007) Purpose: The purpose of this paper is
to examine the impact of gender on the performance assessments of managers arising from
the 360‐degree scheme operated within the UK headquarters of a large multi‐international
financial services organization.
Design/methodology/approach: A questionnaire approach was used to collect data on 66
managers (33 males and 33 females) against four broad capabilities on the
360‐degree appraisal system. Data were gathered on each of the 66 managers from eight
different sources including the individual being appraised, three of their peers, three of their
direct reports (subordinates) and their manager (supervisor).
Findings: Performance ratings were either gender neutral or higher for female than for male
managers. Within the case company there was no evidence of unfavorable discrimination
against female managers, if anything the reverse with female managers showing
superior performance compared to their male counterparts.
Research limitations/implications: As with all cross‐sectional research causality cannot be
confirmed and difficulties in accessing 360‐degreeappraisal information for a large number
of managers led to constraints on research methodology.

27
Practical implications: The implication for human resource management is that the
360‐degree appraisal system did not necessarily fulfill the degree of objectivity claimed by
its adherents and that possible adverse influence may be inherent within the 360‐degree
rating system of managers particularly.
Originality/value: The paper offers insights into gender differences within 360‐degree
managerial performance appraisals.

Donald L. Caruth, John H. Humphreys, (2008) Purpose: The purpose of this paper is to
demonstrate the need for and propose a more aligned and integrated standard
for performance evaluation to enhance effective strategic control.
Design/methodology/approach: The paper reviews the various issues creating discontent
with the performance appraisal systems within many organizations and demonstrates how
these problems inhibit successful strategic control. It attempts to cogently incorporate
the performance appraisal characteristics needed for the exercise to function as a critical
organizational control metric and a useful feedback mechanism for strategic management of
the firm.
Findings: The paper finds that, whereas performance evaluation has received reasonably
robust examination in the human resources literature, explicit guidance toward the
integration with strategic control is inadequate. Without consistent alignment between these
functions, however, performance appraisal becomes an exercise in futility instead of a vital
control measurement, often resulting in not only personnel dissatisfaction, but also, more
importantly, an impediment to systematic strategy implementation.

Research limitations/implications: The paper offers a viewpoint based upon the authors'
experiences and a review of the literature. It aims to stimulate a broader understanding and
discussion of the crucial link between performance evaluation and strategic control.
Practical implications: Although it is possible to theoretically separate the human resource
function of performance appraisal from broader strategic management processes, such an
approach is not realistic for organizational leaders charged with strategy execution. These
leaders would benefit from a framework for ensuring this important HR function also meets
the requirements for operative strategic control.

28
Original/value: While many in the literature have focused on how to conduct legal and
efficient performance evaluations, guidance on crafting such appraisals as control metrics is
insufficient. The paper endeavours to provide this direction.

Peter Prowse, Julie Prowse, (2009) Purpose: This paper aims to evaluate the aims and
methods of appraisal, and the difficulties encountered in the appraisal process.
Design/methodology/approach: The paper uses a review of the literature to evaluate the
development of appraisals and argues that the critical area of line management development
that was identified as a critical success factor in appraisals has been ignored in the
later literature evaluating `the effectiveness of performance appraisals.
Findings: The review identifies the lack of theoretical development in appraisal and argues
the psychological approach of analysis and a more critical realization of appraisal,
re‐evaluating the challenge to remove subjectivity and bias in judgments of appraisal.
Research limitations/implications: Further evaluation of key interpersonal skills is
required for appraisal systems to develop performance.
Practical implications: The use and design of performance pay in public and private
services linked to appraisal have not always improved organizational performance and can
contribute to reduced motivation.
Originality/value: Little research has evaluated the current increases in using appraisals
and the changes in focus from appraisal to performance management. The paper adds value
to the existing body of knowledge and offers insights for practitioners and researchers.
Michelle Brown, Douglas Hyatt, John Benson, (2010) Purpose: The purpose of this paper
is to examine the role of low quality performance appraisals (PA) on three human resource
management outcomes (job satisfaction, organizational commitment and intention to quit).
Design/methodology/approach: Using data from 2,336 public sector employees‘ clusters
of PA experiences (low, mixed and high) were identified. Regression analysis was then
employed to examine the relationship between low quality PA experiences and job
satisfaction, organizational commitment and intention to quit.
Findings: Employees with low quality PA experiences (relative to those with mixed and
high quality PA experiences) were more likely to be dissatisfied with their job, be less
committed to the organization and more likely to be contemplating leaving the organization.
Research limitations/implications: The data were collected in a large public sector
research organization where the results of the appraisal were linked to pay increments.

29
Further research is needed to determine the applicability of the results to private sector
employees.
Practical implications: The quality of the PA experience varies and a low quality
experience results in lower job satisfaction and organizational commitment and higher quit
intentions. The challenge for human resource (HR) practitioners is to decide whether the
allocation of additional resources to ensure that all employees have a uniformly high quality
PA experience is a worthwhile investment.
Originality/value: Research has tended to focus on the relationship between a single
feature of a PA process and HR outcomes. Organizations need to acknowledge the
importance of the overall PA experience when evaluating its consequences for HRM
outcomes.

Steven H. Appelbaum, Michel Roy, Terry Gilliland, (2011) Purpose: The purpose of this
article is to provide a more complete perspective regarding the ―best practices‖ for
performance appraisals of ―distant‖ employees in global organizations.
Design/methodology/approach: A range of published works (1998‐2009) on multinational
corporations and performance appraisals was reviewed. The literature was used to determine
human resource challenges associated with globalization as well as the types
of performance appraisals, common pitfalls and elements for improvement of appraisal
systems. Concepts were then combined to determine the ―best practices‖
for performance appraisal in a global setting. Finally, a small questionnaire consisting of six
questions was constructed and sent to managers in two companies in the health care industry
meeting the criteria of having ―distant‖ employees. The questions were open‐ended in order
to allow for a variety of responses enabling the researchers to view trends and make
comparisons with the literature.
Findings: Adequate training must be provided to both the appraiser and the appraisee in
order to avoid the many rating errors that are common in performance appraisal. Training
should include cultural, legal and customer differences by country providing managers with
the tools to improve on the process. Managers must also be given the opportunity to build
the required relationship with these employees.
Research limitations/implications: A questionnaire was sent to several key managers in
two complex pharmaceutical firms meeting the criteria with responses received. Further
empirical research on the best practices of performance appraisal for distant employees in
global organizations should be pursued.

30
Practical implications: This article provides a source of information on what practices are
followed in order to support the performance appraisal of ―distant‖ employees in different
parts of the world.
Originality/value: There is limited literature dealing with ―distant‖
employee performance appraisal in global organizations and this article attempts to fill this
gap.

Caroline Ann Rowland, Roger David Hall, (2012) Purpose: In a changing economic
climate, characterized by pressures to improve productivity and reduce costs,
performance management has a more central role in helping to ensure competitive
advantage. Appraisals have become an almost universal feature of modern organizations and
it is essential that they are perceived as fair if they are to bring about commitment to
discretionary effort, which is increasingly a key feature in gaining competitive advantage.
The purpose of this paper is to examine the outcomes and processes of
performance appraisal through the concept of organizational justice.
Design/methodology/approach: This paper uses the concept of organizational justice to
explore the outcomes, procedures and implementation of appraisal in contemporary
organizations. It draws on a range of theoretical frameworks from both philosophy and
social science, examines current practices and experiences and looks at future trends.
Empirical research includes a ten‐year longitudinal study of practicing managers and
ethnography, questionnaires and interviews.
Research limitations/implications: The authors conclude that appraisal frequently creates
both actual and perceived injustice in organizations and a tension between
managing performance and encouraging engagement, which is dependent on perceptions of
fairness. The authors place appraisal within a framework of organizational justice and
encourage further research into areas of organizational effectiveness.
Originality/value: The research clearly indicates that both managers and employees see a
potential for appraisal, which is rarely achieved in practice. It opens up a dialogue linking
the performance agenda with issues of development, motivation and perceptions of justice
in the search for models of competitive advantage. This research also confirms the findings
of others, most significantly in terms of reinforcing perceptions of dishonesty, mistrust,
inequity and managerialism.

31
Paul J. Davis, (2012) Purpose: This paper aims to highlight the common failures
of performance appraisals and describe how training can help overcome these failures.
Further, to propose some practical strategies on maximizing the effectiveness
of appraisal systems.
Design/methodology/approach: The paper is based on, and is a synthesis of, a
comprehensive literature review of over 300 articles published between 1980 and 2010.
Findings: The design, management and implementation of performance appraisals have
been hampered for many years by several common strategic and operational mistakes.
Training and learning has a big role to play in addressing these mistakes and
improving appraisal outcomes for individuals and organizations.
Practical implications: Organizations invest a great deal of time and money every year into
conducting employee performance appraisals. However, they are missing simple
opportunities to get more value from the process and increase the integrity of
their appraisal systems. Organizations can adopt the strategies presented here to improve
practice.
Originality/value: This paper provides a summary of an
exhaustive literature review covering 30 years. It succinctly highlights several major
problems with appraisals and provides practitioners with realistic strategies they can
introduce to their organizations

Clinton O. Longenecker , Laurence S. Fink , Sheri Caldwell , (2014) Purpose: The

purpose of this two-part paper is to explore the current practices being employed in the
formal performance appraisal process in a cross-section of US service and manufacturing
organizations. In this paper, the authors identify the current trends that emerged from this
research study and the improvement opportunities that exist for organizations that currently
engage in the practice of formally appraising their personnel.
Design/methodology/approach: The formal performance appraisal process, procedure, and
rating form from 183 US organizations were reviewed by a three-person review panel and
were content analyzed to identify current trends and opportunities for improvement.
Findings: This qualitative analysis revealed that the average rating procedure had been in
place for 5.5 years, to serve a wide variety of purposes, identified critical gaps in training,
and made it clear that organizations employ a wide variety of performance criteria in
assessing their people.

32
Research limitations/implications: The biggest limitation of this research is the fact that a
convenience sample of 183 and organization was employed as the basis for this study.
Practical implications: Data on the actual formal performance appraisal process of
organizations is rather limited and this research provides critical insight into current practice
limiting potential generalization.
Social implications: The social implications of this research suggests that organizations can
do a much better job of equipping their leaders/employees to more effectively reap the
organizational benefits of this key practice.
Originality/value: Research in this area is not prevalent so this is a descriptive research
study that both researchers and organizations can use to further their knowledge in
formal performance appraisal.

33
 RESEARCH METHODOLOGY

3.0) RESEARCH METHODOLOGY

Research is a systematic activity to achieve the truth. It include the identification of study area, the
procedure for collecting data, analyzing the data and finding the conclusion or truth based upon the
scientific procedure.

According to Robert Rose, ―Research is essentially an investigation, a recording and analysis of

evidence for the purpose of gaining knowledge‖.
The methodology may different from problem to problem. It is the scientific and systematic way to
solve research problems. A researcher has to design his methodology, that is, in addition to the
knowledge of method or techniques, he has to apply the methodology as well.

Research methodology is a procedure to help the researcher find the required data to draw
meaningful conclusion or make some predictable results on similar types of experiments or
incidents. In other words, research methodology id the set of tools and techniques which helps
researcher, to conduct the research successfully.

3.1) CONCEPTULIZATION
Performance appraisal or performance evaluation is a method of evaluating the behaviour of
employees in the work spot, normally including both quantitative and qualitative aspects of job
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.
 It is a systematic process which involves
 Setting work standards.
 Assessing employee‘s actual performance relative to work standards.
 Offering feedback to the employee so that he can eliminate deficiencies.
 It tries to find out how well the employee is performing the job and tries to establish a plan
for further improvement.
 The appraisal is carried-out periodically according to a definite plan. It is certainly not a one
shot deal
 It is not a past oriented activity, rather it is n future oriented activity
 It refers to how well an employee is doing the assigned job.

34
 It focus only on employee development and forces managers to become coaches rather than
judges, which provides an opportunity to identify issues for discussion, eliminate any
potential problems, and set new goals for achieving high performance.

3.2) SIGNIFICANCE OF THE STUDY

Performance Appraisal are an integral part of the capital market. It is the perfect type of
motivational tool for better employee performance Performance Appraisal provide
liquidity to the listed firm; they give quotations to the listed firms & help in increasing
efficiency of the employee and growth and development in the firm.

Performance Appraisal creates a belongingness in the employees towards firm to get their
work done with more effective and efficient . Performance Appraisal in India is more than
century old & has been functioning effectively through the medium of motivational
incentives. Performance Appraisal, which is integral part of the motivational tool for better
performance of employees, has a major impact on the functioning of the corporate sector in
particular. Since the Performance Appraisal is playing, major role in the Indian economy
from the past several years there is an essential study the overall functioning of better
performance of employees.

3.3) OBJECTIVE OF THE STUDY

1) To study the performance attitude appraisal system of organisation.

2) To access the satisfaction level of employees towards performance appraisal system of the
organisation.
3) To access the reason behind performance appraisal done in the organisation .

3.4) SCOPE OF STUDY

It is important to point out the relevance and significance of the study/ investigation. What would be
the value of the study for policy formulation, theory or practice? Can the findings contribute to the
enrichment of the theory solutions to the problem?

35
3.5) RESEARCH DESIGN

A research design is a definite plan for obtaining a sample from a given population .It refers
to the technique or the procedure the researcher would adopt in selecting items for the
sample i.e. the size of the sample. In my project, I followed the simple random sampling.

3.6 ) COLLECTION OF DATA

Data collection is a major ingredient of any research project. Its details out the various
modes by which data is collected, which is very necessary for the research methodology.

The term ‗Research Methodology‘ indicates an exhaustive and searching investigating into
some accepted principles and conclusions, so as to bring into light some new and novel facts.
The purpose of research is to discover answers to questions through the application of
scientific procedures. The first step towards any research is to identify the problem and look
at it objectively. Once problem to be studied is decided, the step to be finalized as follows:

3.7) SOURCES OF DATA COLLECTION

PRIMARY DATA COLLECTION:

It is better to go for primary data i.e., for the first hand information. This survey was
followed on the principles of Primary Data Collection Method. For collecting the Data, I
followed the Questionnaires method.

SECONDARY DATA COLLECTION:

On the other hand, Secondary data are those which have already been collected and
analysed by someone else. Secondary Data is collected from various sources i.e. Official
records, Books, Internet, journals etc. I have used all the above tools to get along with
research project, but the main emphasis is given to the responses collected through
questionnaires. The numerous official records of the past and the present, intranet site are
also referred for the collection of exact information.

36
3.8 SAMPLING TECHNIQUE

Sampling since Performance Appraisal incentives. are not available for the overall
employees was considered for the study. 100% coverage was difficult within the limited
period of time. Hence sampling survey method was adopted for the purpose of the study
Population: (universe) Employees Performance Appraisal Ltd

SAMPLE SIZE

Sample Size refers to the numbers that have been selected from the universe to consider a
survey.Our Survey Report involved a Sample Size of 20 respondents from the survey
represent respondent for the survey are the employees of the company feedback of
respondents was collecting regarding from the company of the questionaire . Both primary
and secondary sources of data collection were used for the project under study.

Sampling Methods: Probability sampling requires complete knowledge about all

sampling units universe. Since due to time constraint non-probability sampling was chosen
for the study
Sampling procedure: From large number of performance appraisal of employees
were randomly picked up.
Field Study: directly approached respondent

3.9) ANALYTICAL STUDY

It is the system of procedures and techniques of analysis applied to quantitative data. The
researchers hato use facts or information already available and analyze these to make a
critical evaluation of the materials or topic. It may consist of a system of mathematical
models or statistical techniques applicable to numerical data. This is also known
as ‗statistical research or method‘. This study aims at testing hypothesis and specifying,
interpreting relationships. It is used or concentrates on analyzing data in depth and
examining relationship from various angles by bringing in as many relevant variables as
possible in the analysis plan. Diagnostic Research: Diagnostic research is directed towards
discovering what is happening.

37
 3.10) LIMITIATIONS OF STUDY

Some findings have been found during the research describes as:

1. Practically, no such appraisal system is being employed in the organization.

2. Few respondents have not shown interest in the appraisal system.
3. Some of the questions not been responded well.
4. The superiors are also not interested in applying appraisal system.
5. Both employees and superiors do not co-ordinate with each other.
6. The method used in appraising is not properly defined to employees.

38
 DATA ANALYSIS AND INTERPRETATION

Presentation enhances the significance of any information manifold. The data collected is
analyzed using simple pie charts, bar graphs & other statistical measures.

1. Is there a formal appraisal system in your organization?

Options No of Persons % age

Yes 12 60

No 8 40

Table no. 4.1.1

Fig no. 4.1.1

INTERPRETATION:- As per the analysis of the above question, out of 20 respondents 60%
said that the formal appraisal system exists in the organization whereas 40% said that there
is no such formal appraisal system in the organization.

39
2. In your view, does the above formal appraisal system function fairly/equitably?

Options No of %age
Persons

Yes 14 70

No 6 30

Table no. 4.1.2

Fig no. 4.1.2

INTERPRETATION: - As per the analysis of the above question out of 20 respondents 70%
said that formal appraisal system is fairly implemented wheras30% said that formal
appraisal system is not fairly implemented.

40
3. Does your immediate boss involve you in the appraisal process by holding a joint meeting?

Options No of persons %age

Yes 11 55

No 9 45

INTERPRETATION:- As per the analysis of the above question, 55% respondents said
that their immediate boss involve them in the appraisal process whereas 45% respondents
said that their immediate boss do not involve them in the appraisal process.

41
4. Do you have a well-understood pay-for-performance compensation program?

No of %age
Options Persons

Yes 15 75

No 5 25

INTERPRETATION:- As per the analysis of the above question, out of 20 respondents, 75%
respondents are well understood pay-for-performance compensation program, whereas 25%
respondents are not well understood pay-for-performance compensation program.

42
5. Do you receive constructive feedback from your boss throughout the year?

No of %age
Options Persons

Yes 17 85

No 3 15

INTERPRTATION:- As per the analysis of the above question, out of 20 respondents, 85%
respondents said that they receive proper feedback from their boss throughout the year
whereas 15% respondents said that they do not receive proper feedback from their boss.

43
6. Does your immediate superior appraise all the work done by you throughout the year?

No of %age
Options Persons

Yes 14 70

No 6 30

INTERPRTATION:- As per the analysis of the above question, 70% respondents said that
their immediate superior appraise all the work done by him throughout the year whereas 30%
respondents said that their immediate superior do not appraise all the work done by him

44
7. Or your appraisal is based only on the work done by you during the latter part of the year
prior to the appraisal?

Options No of %age
Persons

Yes 4 20

No 16 80

INTERPRTATION:- As per the analysis of the above question, 20% respondents said that
their appraisal is based only on the work done by them during the latter part of the year prior
to the appraisal whereas 80% respondents said that their appraisal is not based only the work
done by them during the latter part of the year prior to the appraisal.

45
8. What is the attitude of your boss towards your PA?

No of %age
Options Persons

5 25
Serious

Neutral 15 75

Waste of 0 0
time

INTERPRTATION:- As per the analysis of the above question, out of 20 respondents, 25%
respondents said that attitude of their boss is serious towards their performance appraisal
whereas 75%respondents said that attitude of their boss is neutral towards their performance
appraisal.

46
 FINDINGS

Some findings have been found during the research describes as:

1. Most of the employees are not satisfied with the performance appraisal process.

2. Most of the employees said that formal appraisal system exists in the organization.

3. Most of the employees agree that formal appraisal system is fairly implemented.

4. Most of the employees are well understood pay-for-performance compensation program.

5. Most of the employees receive proper feedback from their boss/ immediate superior.

6. Attitude of the boss is neutral towards performance appraisal.

7. Performance appraisal goals are realistic, achievable and measurable.

47
 SUGGESTIONS

1. Appraisal should be based on the performance of an employee in an organization.

2. A well defined system should be there in the organization for performance appraisal process
which is generally not prevalent in organistion.

3. There is a need to recognize the extra efforts by employees and to help them rather motivate
them to get as many as appraisals as they can.

4. HR team should show ownership in this regard. They are not aware of the employee
appraisal to be done.

48
 CONCLUSION

 The options required strong motivation to face the challenges. Proper training
and satisfaction at all levels will be the strongest establishment to launch a
battering 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. An effective safety measures based on
rising trends suggests model for achieving the targets which will make financial sector as
well as Human resource industry in India truly competitive. It helps the organization to
grow more and more. Employees of the organization get benefitted with the appraisal
system to find out their strengths and weaknesses.

49
 QUESTIONNAIRE

SECTION ~ A

1. Name ………………………………………..
2. Age ………………………………………..
3. Institute ………………………………………..
4. Course ………………………………………..

SECTION ~ B

1. Is there a formal appraisal system in your organization?

a) YES
b) NO

2. In your view, does the above formal appraisal system function fairly/equitably?

a) YES
b) NO

3. Does your immediate boss involve you in the appraisal process by holding a joint
meeting?

a) YES
b) NO

4. Do you have a well-understood pay-for-performance compensation program?

a) YES
b) NO

5. Do you receive constructive feedback from your boss throughout the year?

50
a) YES
b) NO

6. Does your immediate superior appraisal all the work done by you throughout the year?

a) YES
b) NO

6.1. Or your appraisal is based only on the work done by you during the latter part of the
year prior to the appraisal?

a) YES
b) NO

7. What is the attitude of your boss towards your PA?

a) YES
b) NO

8. Are performance appraisal goals (Key Result Areas or Key Performance Indicators)
clearly communicated to you at the start of the appraisal year?

a) YES
b) NO

9. The performance appraisal goals set for you are realistic, achievable, and measurable?

a) YES
b) No

51
BIBLIOGRAPHY

During the making of this project various books were consulted:-

c Human Resource Management
By T.N. Chhabra
c Personal Management & Industrial Relations
By R.C. Sharma & D.C. Sharma
c Human Resource and Personnel Management
By K. Aswathappa
c Research Methodology
By C.R. Kothari

Website:
c www.persmin.nic.in
c www.nt.rsuk.co
c www.star.nic.in

Baird, L. S., Beatty, R.W., and Schneier, C. E. (1982).

Performance appraisal sourcebook
.
Amherst, Mass.: Human Resource Development Press.
Bernardin, H. J. and M. R. Buckle
y. 1981. Strategies in rater training.
Academy of
Management Review
6: Pgs. 205-212.
Bernardin, H. J. and Walter C.
S. (1977). Effects of rater
training and diary keeping on
psychometric error in rating.
Journal of applied psychology, 62: Pgs. 64 – 69.
Bernardin, H. J., Kane J., Ross S., Spina J., Johnson D. (1995).
Performance appraisal design,
development and implementation
. In: Ferris R. et al: Handbook of Human Resource
Management. Cambridge: Blackwell (1995).
Blumberg, H. H. (1972). Communicati
on of interpersonal evaluations.
Journal of Personality
and Social Psychology, Vol. 23, Pgs. 157-162.

52
 Boice, D.F. and Kleiner, B.H. (1997), Design
ing effective performance appraisal system,
Work Study, Vol. 46, no.6, pp. 197-201.
Borman, W. (1975). Effects of instructions to
avoid halo error on reliability and validity of
performance evaluation ratings,
Journal of Applied Psychology, Vol. 60, Pgs. 556-560.
Borman, W. (1978). Exploring upp
er limits of reliability a
nd validity in job performance
rankings,
Journal of Applied Psychology, Vol. 63, Pgs. 135-144.
Bretz, R., G. Melkovich, and W. Read (1992).
The current state of performance appraisal
research and practice: Concerns
, directions and implications,
Journal of Management, Vol. 18,
no. 2, Pgs. 321-352.
vii
Carroll, S. J. & Schneier, Craig E. (1982)
. Performance appraisal and review systems:
The
identification, measurement and developmen
t of performance in organizations
Pgs. 2 -6,
217 – 246. Glenview, IL: Scott Foresman
Cooper, W. (1981). Ubiquitous Halo,
Psychological Bulletin, 90, Pgs. 218-244.
Cummings & Schwab (1973). Pe
rformance in organizations:
Determinants and Appraisals
.
Glenview, IL: Scott Foresman.
Day, N. (1989). Performance management y
ear round, Personnel, Vol. 66, no. 8, Pgs. 43-46
Driver, R. S. (1942). Training as a means
of improving employee performance rating.
Personnel, Vol. 18, Pgs. 364-370.
Feldman, J. M. (1979). Beyond attribution
theory: Cognitive process in employee
performance evaluations.
Journal of Applied Psychology, Vol. 66, Pgs. 127-148.
Ferris. G. R. & Rowland, K. M. (1990). Pe
rformance evaluation, goal setting and feebdack,
Pgs. 185 -211. Greenwich, Conn
ecticut: Jai Press Inc.
Fisher, C.D. (1989). Self
and superior assessment:
Unraveling the causes of disagreement
,
unpublished manuscript, University of Baltimore.

53
 Fisher, C.M. (1994). The differe
nce between appraisal schemes:
Variation and acceptability
part I, Personnel Review, Vol. 23, no. 8, Pgs. 33-48
. Nottingham Trent University, UK, MCB
University Press.
Freidson, E. & Rhea, B. (1965). Knowledge
and judgment in professional evaluations.
Administrative Science Quarte
rly, Vol. 10, Pgs. 107 – 124.

54