Submitted By: Sonal Srivastava

Performance management is a continuous process of

Identifying, measuring, and developing the performance of individuals and teams, and Aligning performance with the strategic goals of the organization

A performance appraisal (PA) is a systematic and periodic process that assesses an individual employees job performance and productivity in relation to certain preestablished criteria and organizational objectives.

Improving the ability of the jobholder; Identifying obstacles which are restricting performance Agreeing a plan of action, that will lead to improved performance.

To find the types of appraisal system follows in different companies. To find the positive and negative outcomes of performance appraisal system used in the different companies. To reveal the various loopholes in the appraisal system To find the consequences of an inappropriately conducted appraisal system. To recommend the best appraisal system from the analysis done on the companies.

Tata Consultancy Limited- 360 Degree Dabur- Management by Objective (MBO) National Thermal Power Corporation- Formal Appraisal Bharat Heavy Electricals Limited- Formal Appraisal Steel Authority of India- 360 Degree

Infosys Limited- 360 Degree Larsen and Turbo- 360 Degree Hewlett and Packard- Management By Objective (MBO) Coca cola- 360 Degree Philips- Formal Appraisal

From the organizations studied, 5 out of 10 organizations appraisal is done annually while in 4 organizations appraisal is done half yearly and in 1 organization i.e. L&T appraisal is done quarterly.
Duration Annually Half Yearly Quarterly Name of the Company TCS, Dabur, BHEL, Philips, SAIL Infosys, Coca Cola, HP L&T

From the study it is found that 9 out of 10 organizations take follow up actions on the basis of appraisal while in HP no such provision was identified. In 6 out of 10 organizations employees performance is judged on both-result basis and behavior basis, while in 3 organizations employees performance is judged on result basis and in 1 organization i.e. Philips performance is judged on behavior basis.
Key for Performance Evaluation
Result & Behaviour Result Behaviour

Company Name
TCS, Infosys, NTPC, BHEL, SAIL, L&T Dabur, Coca Cola, HP Philips

The study gives us an insight that the 360 degree appraisal is followed by 5 out of 10 organizations, followed by 3 out of 10 organizations following formal appraisal and 2 organizations i.e. HP and Dabur following MBO method.
Appraisal Method 360 Degree Company Infosys, TCS, L&T, Coca Cola, SAIL

Formal Appraisal MBO

BHEL, NTPC, Philips Dabur, HP

In 8 out of 10 organization the appraisal is done by the immediate supervisor followed by 2 organizations i.e. Infosys and TCS where a second level appraiser is present who reviews the appraisal done by the immediate supervisor and is the immediate point of contact for conflict resolution. In 7 out of 10 organizations training sessions are held for employees as a part of performance improvement while in 2 organizations i.e. BHEL and SAIL, counseling sessions are provided. In HP, no such provision has been identified.

It is imperative for the organization and managers to allocate time for performance counseling and to provide a structure and forum for counseling in knowledge intensive organization where organization reputation and focus on employee development is critical issue. Employees Jobs and Responsibilities are required to be carefully planned and rationalized in terms of Companys target and top managements plans. Departmental goals should map out what and how the Department is to contribute towards achieving the companys goals and cascading down to individual goals.

DOING EFFECTIVE APPRAISALS: the key features that need to be built into a performance are as under:

Start at the Top HR Should Support, Not Own the System Cascade Strategy and Goals to all Levels Set Measurable Goals Set Talent Development Objectives

Rate Outcomes, Rate Performance but Dont Rank Train Managers and Employees Link Rewards to Performance but discuss development separately Appraise the Appraisers Consider Having Review Discussions On-line

In conclusion, a performance appraisal is a very important tool used to influence employees. A formal Performance review is important as it gives an opportunity to get an overall view of job performance and staff development. It encourages systematic and regular joint stocking and planning for the future. Good performance reviews therefore dont just summarize the past they help determine future performance.