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Chapter -1

Introduction

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INTRODUCTION OF HRM

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1.1 INTRODUCTION OF HUMAN RESOURCE MANAGEMENT

(HRM) is a process, which consists of four main activities, namely, acquisition,


development, motivation, as well as maintenance of human resources. Scott, Clothier and
Spriegel have defined Human Resource Management as that branch of management which is
responsible on a staff basis for concentrating on those aspects of operations. Which are
primarily concerned with the relationship of management to employees and employees to
employees and with the development of the individual and the group.

Human Resource Management is responsible for maintaining good human relations in


the organization. It is also concerned with development of individuals and achieving
integration of goals of the organization and those of the individuals. Northcott considers
human resource management as an extension of general management, that of prompting and
2 stimulating every employee to make his fullest contribution to the purpose of a business.
Human resource management is not something that could be separated from the basic
managerial function. It is a major component of the broader managerial function. French
Wendell, defines ―Human resource management as the

Recruitment, selection, development, utilization, compensation and motivation of human


resources by the organization.

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Definition ―Human resource management is the planning, organizing, directing and
controlling of the procurement, development, resources to the end that individual and
societal objectives are accomplished‖. This definition reveals that human resource (HR)
management is that aspect of management, which deals with the planning, organizing,
directing and controlling the personnel functions of the enterprise.

1.2 NATURE OF HUMAN RESOURCE MANAGEMENT


The emergence of human resource management can be attributed to the writings of the
human relation who attached great significance to the human factor. Lawrence Apply
remarked, Management personnel administration‖. This view is partially true as management
is concerned with the efficient and effective use of both human as well as non human
resources.

Thus human resource management is only a part of the management process.

At the same time, it must b e recognized that human resource management is inherent in the
process of management.

This function is performed by all the managers. A manager to get the best of his people, must
undertake the basic responsibility of selecting people who will work under him and to help
develop, motivate and guide them. However, he can take the help of the specialized services
of the personnel department in discharging this responsibility.

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1.3 OBJECTIVES OF HUMAN RESOURCE MANAGEMENT
The basic objective of human resource management is to contribute to the realization of the
organizational goals. However, the specific objectives of human resource management are as
follows :
(i) To ensure effective utilization of human resources, all other organizational resources
will be efficiently utilized by the human resources.
(ii) To establish and maintain an adequate organizational structure of relationship among
all the members of an organization by dividing of organization tasks into functions,
positions and jobs, and by defining clearly the responsibility, accountability, authority
for each job and its relation with other jobs in the organization.
(iii) To generate maximum development of human resources within the organization by
offering opportunities for advancement to employees through training and education.
(iv) To ensure respect for human beings by providing various services and welfare
facilities to the personnel.
(v) To ensure reconciliation of individual/group goals with those of the organization in
such a manner that the personnel feel a sense of commitment and loyalty towards it.
(vi) To identify and satisfy the needs of individuals by offering various monetary and non-
monetary rewards.
In order to achieve the above objectives, human resource management undertakes the
following activities :
(i) Human Resource Planning, i.e., determining the number and kinds of personnel
required to fill various positions in the organization.
(ii) Recruitment, selection and placement of personnel, i.e., employment function.
(iii) Training and development of employees for their efficient performance and growth.
(iv) Appraisal of performance of employees and taking corrective steps such as transfer
from one job to another.
(v) Motivation of workforce by providing financial incentives and avenues of promotion.
(vi) Remuneration of employees. The employees must be given sufficient wages and
fringe benefits to achieve higher standard of living and to motivate them to show
higher productivity. Social security and welfare of employees.

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1.4 FUNCTIONS OF HUMAN RESOURCE MANAGEMENT.
The main functions of human resource management are classified into two categories:

1. Managerial Functions and


2. Operative Functions

1. Managerial Functions Following are :

1. Planning :

The planning function of human resource department pertains to the steps taken in
determining in advance personnel requirements, personnel programs, policies etc.

2. Organization : Under organization, the human resource manager has to organize the
operative functions by designing structure of relationship among jobs, personnel and physical
factors in such a way so as to have maximum contribution towards organizational objectives.

3. Directing :

Directing is concerned with initiation of organized action and stimulating the people to work.
The personnel manager directs the activities of people of the organization to get its function
performed properly.

4. Controlling :

It provides basic data for establishing standards, makes job analysis and performance
appraisal, etc. All these techniques assist in effective control of the qualities, time and efforts
of workers.

2.The Operative Functions of Human Resource Management

1. Procurement of Personnel :

It is concerned with the obtaining of the proper kind and number of personnel necessary to
accomplish organization goals.

2. Development of Personnel :

Development has to do with the increase through training, skill that is necessary for proper
job performance.

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3. Compensation to Personnel :

Compensation means determination of adequate and equitable remuneration of personnel for


their contribution to organization objectives.

4. Maintaining Good Industrial Relation :

Human Resource Management covers a wide field. It is intended to reduce strifies, promote
industrial peace, provide fair deal to workers and establish industrial democracy.

5. Recordkeeping :

In record-keeping the personnel manager collects and maintains information concerned with
the staff of the organization.

6. Personnel Planning and Evaluation :

Under this system different type of activities are evaluated such as evaluation of
Performance, personnel policy of an organization and its practices, personnel audit, morale,
survey and performance appraisal, etc.

1.5 IMPORTANCE OF HUMAN RESOURCE MANAGEMENT

Importance Of Human Resources Management.

1. It helps management in the preparation adoption and continuing evolution of


personnel programs and policies.
2. It supplies skilled workers through scientific selection process.
3. It ensures maximum benefit out of the expenditure on training and development and
appreciates the human assets.
4. It prepares workers according to the changing needs of industry and environment.
5. It motivates workers and upgrades them so as to enable them to accomplish the
organization goals.
6. Through innovation and experimentation in the fields of personnel, it helps in
reducing casts and helps in increasing productivity.
7. It contributes a lot in restoring the industrial harmony and healthy employer-employee
relations.
8. It establishes mechanism for the administration of personnel services that are
delegated to the personnel department.

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1.6 INTRODUCTION OF PERFORMANCE APPRAISAL :-

Performance appraisal is the process of assessing the performance and progress of an


employee or a group of employees on a given job and his / their potential for future
development. It consists of all formal procedures used in the working, 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:

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

Reward

Selection Performance Appraisal

Development

The Human Resource Cycle

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1.7 Objectives of performance appraisal

Performance appraisal can be done with following objectives in mind:

1. To maintain records in order to determine compensation packages, wage structure,


salaries raises, etc.
2. To identify the strengths and weaknesses of employees to place right men on right
job.
3. To maintain and assess the potential present in a person for further growth and
development.
4. To provide a feedback to employees regarding their performance and related status.
5. To provide a feedback to employees regarding their performance and related status.
6. It serves as a basis for influencing working habits of the employees.
7. To review and retain the promotional and other training programs.

1.8 Advantages of performance appraisal

It is said that performance appraisal is an investment for the company which can be justified
by following advantages:

1. Promotion: performance appraisal helps the supervisors to chalk out the promotion
programs for efficient employees. In this regards, inefficient workers can be
dismissed or demoted in case.
2. 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.
3. Employees development: the systematic procedure of performance appraisal helps
the supervisors to frame training policies and programs. It helps to analysis strengths
and weaknesses of employees so that new jobs can be designed for efficient
employees. It also helps in framing future development programs.
4. Selection validation: performance appraisal helps the supervisors to understand the
validity and importance of the selection procedure. The supervisors come to know the

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validity and thereby the strengths and weaknesses of selection procedure. Future
changes in selection methods can be made in this regard.
5. 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:
a. Through performance appraisal, the employers can understand and accept
skills of subordinates.
b. The subordinates can also understand and create a trust and confidence in
superiors.
c. It also helps in maintaining cordial and congenial labour management
relationship.
d. It develops the spirit of work and boosts the morale of employees.

All the above factors ensure effective communication.

6. 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.

1.9 Approaches to Performance Appraisal


There are two approaches to performance appraisal viz. Administrative approach and
developmental approach.
1. Administrative approach: Making and carrying out employment decisions are the
fundamental goals of the administrative decision making. Administrative
Decisions include deciding which employees to promote, which to terminate,
Which to discipline, which employees to transfer etc..
Administrative approach deals with the following:
- Human resource planning
- Reward decisions e.g. Salary and wages increase
- Promotions; and
- Personnel research (e.g. Effectiveness of training programs.)

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2. Developmental approach: When performance appraisal information is intended to be
used for developmental purposes, employees receive concrete feedback about their job
performance.
Developmental approach deals with the following:
 Provide employee with feedback on their strengths and weaknesses and how to
improve future performance.
 Aid career planning and development; and
 Provide inputs for personal remedial interventions.

1.10 Sources of Performance Appraisal:


The appraiser may be any person, who has thorough knowledge about the job content,
contents to be appraised, and who observes the employee while performing a job.

1. The immediate supervisor


The general practice is that immediate supervisor appraises the performance of the
subordinates. The immediate supervisor is in position to observe, direct and evaluate the
subordinate‘s performance and is responsible for that person’s performance.
The findings of a case study suggest that Managers who receive positive feedback about their
performance subsequently rate the employee significantly higher than managers who receive
negative feedback regarding their own performance. This occurs despite the fact that the
managers know the evaluation of them is bogus. Hence it can be said that one's own
performance appraisal is related to the subsequent appraisal of one's subordinates. (Gary P. Et
al. 2008)

2. Peers
Appraisal by peers is popular in the firms that use team appraisal or peer appraisal. Peers are
in a better position to evaluate certain facts of job performance which the subordinates or
superiors cannot do. Such facts include contribution to work group projects, interpersonal
effectiveness, communication skills, reliability and initiative etc.
.

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3. Subordinates
Many organizations let the subordinates to rate their superior’s performance. This process is
called as “upward feedback”. It helps in assessing certain aspects of superior’s performance
like ; management style, ability to communicate, delegate the work, allocate resources and
deal with employee on a fair basis etc.

4. Self- appraisal
Self-appraisal gives a chance to the employee to look at his/her strengths and Weaknesses,
his achievements, and judge his own performance. If employee is clear with the objectives,
his/her responsibilities, they are to a great extent in a better position to appraise their own
performance.

5. Rating Committees
Many organizations use rating committees. These committees contain the employee’s
Immediate supervisor and three or four other supervisors. There can be discrepancy among
ratings by individual supervisors, the composite rating tend to be more reliable ,fair and valid.

6. User of Services
This appraisal is done in service organizations, where performance of an employee is
evaluated on certain criteria like promptness, speed in performing a given task, accuracy etc.
Is judged by users of the service.

1.11 Performance Appraisal Process:


1. Setting the performance standards:

The first step in the process of performance appraisal is setting up of the standards which will
be used as a benchmark to compare actual performance of the employees. This step requires
setting the performance criteria to judge performance of the employees as successful or
unsuccessful of the degrees. To be useful standards should relate to the desired result of each
job.

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2. Communicating the standards:

There are two parties involved in performance appraisal: appraiser and appraise. Appraiser is
one who does the appraisal and the appraise is the one whose performance is evaluated.

An appraise should be informed the standards .This will help them to understand their roles
and to know what exactly is expected from them.

3. Measuring the actual performance:

The most difficult part of the performance appraisal process is measuring actual

Performance of the employees i.e. The work done by the employees during a specified period
of time. It is a continuous process which involves monitoring the performance throughout the
year. This stage requires careful selection of the appropriate techniques of measurement such
as personal observation, statistical reports, and written reports for measuring the
performance.

4. Comparing actual performance with desired performance:

At this stage, actual performance is compared with the desired performance or

Performance standards. Comparison reveals deviations in the performance of the employees


from set standards. This comparison can show actual performance being more than the
desired performance or, actual performance being less than the desired performance. It
includes recalling, evaluating and analysis of data related to the employees’ performance.

5. Providing feedback:

Result of the appraisal is communicated and discussed with the employees on one-to one
basis. The focus of this discussion is on communication and listening. The results, problems
and possible solutions are discussed, with the aim of problem solving and reaching
consensus. The feedback should be given with a positive attitude as this can have an effect on
the employees’ future performance. The purpose of a meeting should be to solve the
problems faced and motivate the employees to perform better.

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6. Taking corrective action:

The last step of the process is to take decisions corrective action to overcome the deficiencies
or the related HR decisions like rewards, promotions, demotions, transfers etc.

1.12 The objectives of the study are:

1. To study the technique of performance appraisal followed in Hotel Celebration.


2. To know the employees attitude towards the present appraisal system.
3. To know the working environment of the employees.
4. To know the satisfaction level of employees working in the organization.
5. To provide suggestion & recommendation from the study conducted.

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Chapter-2
Company profile

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2.1 Introduction:-
The Hotel Celebration has been established in 2001 in Raipur Chhattisgarh. It is a service
provider company. The hotel celebration a synonymous name in the hospitality segment, it
has ultra modern and distinctive presence in the capital of Chhattisgarh i.e Raipur ,well
known among the population of the state.

Celebration embraces the mystique of Raipur ,with its amazing charm, beauty and corporate
culture . The friendliness and hospitality of its People helps top provide an exotic and
intriguing comfortable business destination for you.

Hotel celebration Raipur has total 45 rooms which are air conditioning & 80 employees
are working there and hotel celebration turnover is 10000000 rs .per year,

It has 5 branches:

1. Hotel celebration Raipur .

2.celebration 24x7 food plaza Raipur (c.g) .

3.the celebration van vilas bandhavgarh .

4.the celebration van vilas kanha

5. The hotel celebration safari barnavapara (c.g).

Hotel Features : restaurant ,coffee lounge &bar , for an authentic indian style for dining
and drinking pleasure. Each outlet offers a superb selection and range of dining, drinking and
entertainment choices.

 Banqueting : five multiple located conference halls for meeting ,exhibition ,


cocktail &dining events.
o It complete with internet access, air conditioning ,sound system , and multiple
mikes.
o A team o catering professionals for providing an efficient and reliable service.

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 Rooms: All rooms has a generous polished marble &carpet floor ,which offers
warmth and cool style for truly business Hotel. centrally air conditioning unit,& each
room has an idd telephones high speed wi-fi internet, lcd tv,coffee/ tea maker, mini
bar refrigerator ,safe deposit locker.

Tourism:

A project tiger since 1974 gives Madhya Pradesh proud . Vividly portrayed in kipling’s
book jungle book. Its sal forest ,grassland and streams are the haunt of the majestic tiger.
Fauna includes leopard, gaur barking deer blackbuck ,the rare hard ground barasingha and
over two hundred avian species experience this wildlife resort ,located at kanha, which has
unparallel accommodation design and facilities and is enhanced by a great team of warn ,
caring people. The resort borders the banjara river on the side .

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the accommodation consist of 34 a/c rooms with all fresco bathing facilities and a small
private garden, it also adds a large & beautifully designed swimming poll with a deck area
within the pool for relaxation in the sun and an adjacent children’s play pool which we feel
proud to offer to our clientele.

Resort has ayurvedic kairali spa to make your rejuvenation complete ; like special holistic
treatment for sinusitis ,migraine ,beauty care weight loss ,arthritis ,skin disease ,slip disk etc.
Which also adds a swimming pools with deck indoor play area , business center wild life
library ,conference hall ,safe deposit lockers , travel desk ,naturalistic tribal making dance
and nature pond for making your stay memorable & enjoyable.

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Has one of the highest density of tiger in india. Tiger spotting virtually guaranteed .this is
where the maharaja of rewa found the world’s first white tiger ,the park is replete with deer.
Leopard ,sambar &wild boar .more than twenty two species of birds founds in the park.
Bandhavgarh fort &prehistoric caves gives a rich experience.

The celebration van villas resort is an architectural marvel with a mix of modern and
traditional elements. The accommodation inspire eclectic tourist with fine taste for
extravagance and indulgence.
Savor the royal comforts that come along with style and grace .only a hotel of global standing
can deliver out of ordinary experience of a stay in bandhavgarh resort.
the celebration van vilas bandhavagrh serves the best to the best. It has the taste of a
charismatic ambiance and pristine surroundings. Enjoy the warm hospitality and all the
comes along with indoor play are, tribal dance, cyber café, wild life reference and general
library, safe deposit lockers, conference hall, travel desk & naturalist.

3.Board of Directors :-

Chief Managing Director : Mr. Kamaljeet Singh Hora

Managing Director : Mr. Harmeet Singh Hora

Group General Manager : Mr. Rajeev Dhiman

Hr & Training Head : Mr. Tapas Kumar Roy

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Chapter-3
Research Methodology

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3.1 Research Methodology

Meaning Of Research : Research is an investigation of finding solutions to scientific


and social problems through objective and systematic analysis. It is a search for knowledge,
that is, a discovery of hidden truths. Here knowledge means information about matters.

Meaning Of Research Design: The research design refers to the overall strategy that
you choose to integrate the different components of the study in a coherent and logical way,
thereby, ensuring you will effectively address the research problem; it constitutes the
blueprint for the collection, measurement, and analysis of data

Research design divided into three categories


 Exploratory
 Descriptive research
 Casual research

Exploratory research
Exploratory research an important part of any marketing or business strategy. Its focus is on
the discovery of ideas and insights as opposed to collecting statistically accurate data. That is
why exploratory research is best suited as the beginning of your total research plan

Descriptive research

Descriptive research takes up the bulk of online surveying and is considered conclusive in
nature due to its quantitative nature. Unlike exploratory research, descriptive research is
preplanned and structured in design so the information collected can be statistically inferred
on a population.

Causal research

Like descriptive research, causal research is quantitative in nature as well as preplanned and
structured in design. For this reason, it is also considered conclusive research. Causal
research differs in its attempt to explain the cause and effect relationship between variables.
This is opposed to the observational style of descriptive research.

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3.2 Data Collection

Data Sources:-
a) Primary data: During the course of the study or research can be through observations or
through direct communication with respondents on one form or another or through
personal interviews. I have collected primary data by the means of a questionnaire. The
questionnaire was formulated keeping in mind the objectives of the research study

The one i have been used are :

a) Questionnaire
b) Informal interview
c) Observation

b) Secondary Data: Means data that is already available i.e., they refer to data, which has
already been collected and analyzed by someone else. When a secondary data is used, the
researcher has to look into various sources from where he can obtain data. This includes
information from :
a) Text books
b) Articles
c) Journals
d) Websites

Sampling Techniques: The sampling techniques adopted for the study is random sampling.

Target Population: I had conducted this survey among 50 peoples and the target group was
the member of the organization .I asked questions to:

1) Manager
2) Employees

Sample Size: The sample size is the representative units of the population .it is neither a
descriptive nor a feasible so ,we have taken a sample size of 50 for the study of this project

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Sample size : 50

Sample area : Raipur

Duration : 45days

3.3 Research Methodology


The data collection sources.

The research approach.

The research tools.

Data analysis & interpretation.

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Chapter -4
Data Analysis and Interpretation

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Q.1 Are you aware of the objectives of the performance appraisal system?

Option No of respondents Percentage

a) Yes 40 80%

b) No 10 20%

80%

80%

70%

60%

50% Yes

40% No
20%
30%

20%

10%

0%
Yes No

Interpretation: From the above chart we conclude that 80% employees had respondent in
favor of that they were aware of performance appraisal system, while 20% were not aware of
the performance appraisal system.

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Q.2 In your opinion performance appraisal is. ?

Option No of respondent Percentage

a) Evaluation of employees 30 60%

b) Promotion of employees 10 20%

c) Job satisfaction of 5 10%


employees

d) Motivation 5 10%

70%
60%
60%

50%

40%

30%
20%
20%
10% 10%
10%

0%
Evaluation Of Promotion Of Job Satisfaction Motivation
Employees Employees Of Employees

Interpretation: According to employees opinion performance appraisal is:

Evaluation of employees- 60% are agreed

Promotion of employees – 20% are agreed

Job satisfaction of employees -10% are agreed

Motivation-10% are agreed

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Q.3 What do you think that which method should apply in performance appraisal?

Option No of respondent Percentage

a) Traditional 30 60%
b) Modern 20 40%

60%
70%

60%
40%
50%

40%

30%

20%

10%

0%
Traditional Modern

Interpretation: According to the chart 60% Employees were in the favor of traditional
method should be apply in the organization, while 40% were in the favor of modern method.

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Chapter-5
Finding & limitations

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5.1Findings of the study:

 We found that 80 employees are working in the organization.


 More than 40% employees are highly satisfied with their current performance
appraisal system.
 More than 50% employees believe that performance appraisal improves their
performance.
 The 60% employees believe that promotion is based on performance appraisal rest of 20%
employees do not believe.
 The 50% employees are aware of the performance appraisal system.
 The 60% employees are in the favor of traditional technique of performance appraisal.

 I have seen that there is a good connection between superiors and employee.

5.2 limitations of the study

 Project duration was limited to 45 days only


 Complete information has not revealed by the administrative reasons.
 The sample size is too small to reflect the opinion of the whole organization
 Reliable data was not found.
 The employees were hesitant to answer

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Chapter – 6
Suggestion & Conclusion

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Suggestion & Conclusion

Suggestion:

 It is essential for an organization to develop performance appraisal system to achieve


higher productivity.
 Reward should give to the employees for their performance .
 Should Proper interactions with seniors.
 Effective training and development programs should be held.
 Proper feedback should give to the management cadre staff at fixed time periods.
 Suggestions and innovations should be encouraged.
 Performance appraisal system should be extensively used in job rotation.

Conclusion:

From this project we conclude that it is essential for an organization to develop the
performance appraisal system to achieve higher productivity. The employees should be aware
of the performance appraisal. They should know every technique which follows by
Organization. Employees should have a proper knowledge and skills. The employees should
have better understanding of organization and value by performance appraisal.

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Annexure

31
Biblography

 Personal And Human Resource Management ( 7th Ed).


P. Subba Rao
Published By Mrs Meena Pandey,Himalaya Publishing House Pvt.Ltd

 Human Resource Management (3rd Ed.)


Lawrence S.Kleiman Ph.D
Published By Biztara New Delhi

 Human Resource Management( 6th Ed.)


Synthia D.Fisher
Lyle F.Scheonifeldt
Jammes B.Shaw
Published By Biztara New Delhi

Methodology marketing research (G C Berry 5th Edition)


About company
Other sources :
Hotel magazines

Webliography
www.celebrationworld.in

www.investopedia.com

Www.hrmguide.com
Www.hrproject.com

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Questionnaire
Name:

Contact no:

Address:

Q.1 Are you aware of the objectives of the performance appraisal system?

a) Yes
b) no

Q.2 In your opinion performance appraisal is?

e) Evaluation Of Employees

f) Promotion Of Employees

g) Job Satisfaction Of Employees

h) Motivation

Q.3 Do you think that organization have to make a fixed duration for performance
appraisal?

a) Yes
b) No

Q.4 .Does performance appraisal affects your Working Efficiency?

a) Yes
b) No

Q.5 Does performance appraisal improves your performance?

a) Yes
b) No

Q.6 After performance appraisal how much improvement is in your performance?

a) 10-20
b) 20-30
c) 30-Above

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Q.7 Are you satisfy with the current performance appraisal system?

a) Highly
b) Satisfied
c) Just Satisfied
d) Dissatisfied

Q.8 Do you get regularly feedback from your superior?

a) Always
b) Some times
c) never

Q.9 Do you know that in which factor promotion process based ?

a) Performance
b) Experience
c) Both

Q.10 Do you know that which technique implemented in your organization for
performance appraisal?

a) Merit
b) Grading
c) Other

Q.11 How are the performance appraisal strategies and programs in the company?

a) Good
b) Average
c) Bad

Q.12 Do you know that what is performance planning?

a) Yes
b) No

Q.13 How many meetings should be scheduled in a year to discuss employees


performance?

a) 1
b) 2
c) More

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Q.14 What do you think that what should be the gap between two appraisal period?
Quarterly

Half Yearly

Yearly

Q.15 Are you satisfied with your employer behavior?

a) Yes
b) No

Q.16 What do you think that which method should apply in performance appraisal?

a) Traditional
b) Modern

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