OBJECTIVES

The main objectives of this project are as follows:

➢To evaluate and analyze the employees satisfaction in HRD department of Air
India
➢To understand the current performance appraisal system of Air India
➢To understand the attitude and satisfactory level of the employees towards their
performance appraisal system, working condition in Air India
➢To evaluate satisfactory level of the employees towards the incentives and
benefits provided by Air India
➢To evaluate the effectiveness of performance appraisal system in Air India
➢To determine the performance appraisal as an important factor in employee
satisfaction
➢To understand the post appraisal measures taken after evaluating the
performance of the Employees
 ANALYSIS

Method of data collection

• Questionnaires
• Briefs provided to us by the various sections within the HRD departments
A) Primary Data:
• Questionnaires
• Interviews

B) Secondary Data:
• Magazines
• Internet
• Management Books
 METHOD OF STATISTICAL ANALYSIS

1) 10 of the tentative questions were selected

2) The options were rated
➢5 points for the positive response and 1 point for the negative response
➢Wherein there were 3 options it was rated 5,3,1
➢Wherein there were 4 options it was rated 5,3,2,1 accordingly
➢Each of the questionnaire were tabulated by way of noting down the details and
the score that each score against the ideal score of 50
➢3) Each total was then converted in to percentage form
➢4) Satisfaction was calculated on 3 basis
CONTINUED….

➢Satisfaction on the basis of groups had 4 categories

➢ Below a) 50% b) 50% - 70% c) 71% - 90% d) Above 90%.The average
satisfaction in each group is calculated giving the statistics.
➢Satisfaction was also analyzed on the basis of age. The age group were
categorized as
➢ a) 30’s b) 40’s c) 50’s.The average satisfaction in each of these groups were
calculated and were analyzed.
➢The other questions and open ended questions were used to calculate the
percentages in the last 5 findings and the recommendations respectively.
 FINDINGS

1) The below 50% satisfied group, i.e., employees scoring 36, 44, 48 (5 employees
in total) with an average of 43% satisfaction can be said to have poor satisfaction.

Their contribution towards the fulfillment of organizational goals and targets can
be deemed to be zero. As their work quality and quantity are likely to suffer and
nowhere near standards. For example, in the recruitment section, wherein the
staff has to meet deadlines and do the processing as required and as
scheduled, the poorly satisfied employees are likely to lag behind and do their
work inefficiently, resulting in reprocessing etc. Thus there would be a loss of
company resources and time. The company reputation and productivity would in
due course of time degrade.
 2) The 50%-70% satisfied group, i.e., Employees scoring 52, 60, 64,68 (11 employees in
total) with an average of 60% satisfaction, can be said to have an average
satisfaction. Their contribution would be around the mark of 50. This group of
employees does work only under compulsion and pressure from higher authorities
which reflects in the poor quality of work due to lack of dedication and genuine
interest. Persuading such employees to work is likely to consume time of the
organization. “Work for working sake” may be deemed as their motive as their dire
financial condition may be the only reason for needing a job

3) The group with the satisfaction level between 71%- 90%, i.e., Employees scoring 72,
76, 80, 84, 88 (13 employees in total) with an average satisfaction of around 79.66%
can be said to have above average or rather a good satisfaction. Their contribution
can be said to be around the mark of 80.
They produce work of good quality and quantity though there is a likelihood of resources
mismanagement.
If they are encouraged in the right direction they can prove to be assets to the organization and
belong to the highly satisfied group.
4) Thus, employees in the age of 40s are most satisfied than the 30’s or the 50’s.
This can be accounted from the fact that the younger (30’s age group) employees would still be
considering ‘greener pastures’ ie., other organizations with a little more of everything they get
now, better salary, perks, facilities, career advancement chances, new experiences, etc.
Whereas the older (50’s age group) employees would be filled with apprehension of retirement
and the rest of the years after retirement. Having reached almost the end of what they could
get in the particular organization and perhaps given their best, their enthusiasm seems to die
out.
The 40s, is the age were mostly employees have family responsibility and social responsibility;
they are no more in a stage wherein they can experiment or even take risk. A secured job is
what they require. They try to make the best of what they are given- thus profiting the
organization and themselves.
5) Analysis of satisfaction levels among different salary groups show that salaries do not have any
significant effect on the satisfaction level.
The satisfaction in 62.5% of employees (25 employees in total) in the salary group of Rs. 8000-
Rs. 15,000 on average is 73.68%.
The satisfaction in 35% of employees (14 employees in total) in the salary group of Rs. 15,000 –
Rs. 20,000 on average is 76.53%
On comparing the two groups and their satisfaction level we find that there is only slight difference in
the two levels of satisfaction.
6) Of the 40 questionnaires collected 92.5% of the employees (37 employees in total)
have worked for over 5 years in this organization.

7) 32% of these employees (12 employees in total who worked for over 5 years) have
said that they would change their job i.e., choose to work for any other organization, if
given a chance.

8) 58% of these employees (i.e., 7 employees in total who said they would change their
job though having worked for over 5 years in this organization) were found to belong
to the 30’s age group.

9) Analysis and calculation of the effectiveness of the Performance Appraisal System

has shown that it is only 70.66% effective i.e., it is just about average.

10) 37.5% of the total sample size have indicated their dissatisfaction with the
implementation of the Performance Appraisal System
CONCLUSION AND RECOMMENDATION
 ➢ All departments need to be fully computerized. This would lead to an increase in the efficiency
of the employees and save time and energy and produce quality work and quantity of work
within a short time span. This would also allow cutting out the disinterested employees from
the organization and curtailing wasteful expenditure.
➢ By inducing competitive spirit in the employees, the facilities provided would be claimed only
by those who are eligible and are worth to enjoy them. Thus it would curtail the wastage of
resources.
➢ Updating employees on new technology and developments in their field will act to increase
their efficiency. Periodical workshop, seminars are means of doing this. Also time to time on-
the-job training will avoid a lot of confusion and misunderstandings which lead to waste of time
and resources.
➢ These changes will boost the morale of the employees and prove beneficial to the
organization which would ultimately benefit the employees.
To Increase The Effectiveness of Performance Appraisal System (P.A.S)
Though the present PAS is very good, its implementation hasn’t been at all stressed on or given importance.
For almost 20 years of an employee’s tenure, the PAS is a mere formality, which every employee seems to
pass through. Though this system would do perfectly if it was followed with the professional spirit and to be
implemented as a compulsory measurement for evaluating the monthly, quarterly and yearly work of an
employee. Which was to have serious consequences for the career progression and incentives rewarded to
any employee then it would surely do wonders for raising the productivity and profit of the organization.
Thus certain recommendations are put forth:
1) The implications of the PA should change. It should have practical implications i.e., if
an employee has lagged behind in his performance, it should affect his promotions or
the incentives or other facilities he would enjoy. This is possible only if the policies
need to be remodeled
2) The steps should be strictly complied with, in a professional manner and rule out the
possibility of partiality playing any role.
3) Self- Appraisal can be implemented on a regular time basis. This can be taken into
account along with quarterly/yearly PA. this also keeps an account of all the
assignments done by the employee and the time period taken to complete each. This
can be checked by the Supervisor. This would also aid the employees in self
development.
4) Personal counseling, which is a post appraisal step should also be given more
importance. Critical cases can be handled better by this method. It would also act as
an encouragement to the employee and he/she will feel cared for in the organization.
5) A follow up is absolutely necessary as the organization need to keep a track of
activities the employee is involved in. It is also necessary to monitor his/her effort in
improving on the shortcomings pointed out earlier, as to how much the employee has
improved on those points and how he/she is performing at present.