Project-performance appraisal

A
DISSERTATION REPORT
ON
PERFORMANCE APPRAISAL
AT JINDAL BROTHERS Pvt. Ltd

Submitted in partial fulfillment of the requirement for
Master of Business Administration (MBA),

FROM
INSTITUTE OF MANAGEMENT AND TECHNOLOGY
SUBMITTED TO: SUBMITTED BY:
Mrs. ESHA BATHLA ASHUTOSH PANDEY
(Internal Guide) M.B.A 4th Sem.

Session: 2010-2012

INSTITUTE OF MANAGEMENT AND TECHNOLOGY

Bazpur Road, Kashipur-244713 U.S.NAGAR (UTTARAKHAND)

(Approved By AICTE: Affiliated to Uttarakhand Technical University)

Declaration

I hereby declare that the work presented herein is genuine work done originally by me and
has not been published or submitted elsewhere for the requirement of a degree programme.
Any literature, data or works done by others and cited within this dissertation has been given
due acknowledgement and listed in the reference section.

Signature of the candidate

(Ashutosh Pandey)

Acknowledgement

In the completion of this project report, I have received encouragement and support from
various quarters, which need special mention.

I wish to acknowledge my indebtedness to Mrs. Esha Bathla, Institute of Management &
Technology, Kashipur, under whom this work has been completed, for extending all possible
cooperation.

I am also thankful to all those people of Institute of Management & Technology, who helped
me directly or indirectly during this period.

MERE ACKNOWLEDGEMENT MAY NOT REDEEM THE D EBT I OWE TO MY
PARENTS FOR THEIR DI RECT/INDIRECT SUPPORT DURING THE ENTIRE COURSE
OF THIS PROJECT.

ASHUTOSH PANDEY

TABLE OF CONTENTS

Title

1. Chapter I
Acknowledgement
Profile of the Project Guide
Executive Summary
2. Chapter II
Company profile
Scope & Objective
3. Chapter III
Research methodology
4. Chapter IV
Performance management
5. Chapter V
Data analysis
6. Chapter VI
Findings
7. Chapter VII
Recommendations
8. Chapter VIII
Limitations
9. Chapter IX
Bibliography
10. Chapter X
Appendix

INTRODUCTION

PERFORMANCE APPRAISAL

Performance appraisal may be defined as a structured formal interaction between a subordinate
and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in
which the work performance of the subordinate is examined and discussed, with a view to
identifying weaknesses and strengths as well as opportunities for improvement and skills
development. Performance appraisal, also known as employee appraisal, is a method by which
the job performance of an employee is evaluated (generally in terms of quality, quantity, cost and
time). Performance appraisal is a part of career development.

Performance appraisals are regular reviews of employee performance within organizations.
Generally, the aims of a performance appraisal are to:

Give feedback on performance to employees.
Identify employee training needs.

Document criteria used to allocate organizational rewards.
Form a basis for personnel decisions: salary increases, promotions, disciplinary
actions, etc.
Provide the opportunity for organizational diagnosis and development.
Facilitate communication between employee and administration

Validate selection techniques and human resource policies to meet federal Equal Employment
Opportunity requirements.

Performance Appraisal Summary

Performance appraisal, while enabling a manager to identify the training needs of employees,
and evolving a training plan for them, also, serves to meet other objectives. Performance
appraisal satisfies the psychological needs individuals have to know how they are performing
their job and increases employees' job satisfaction and morale by letting them know that the
manager is interested in their progress and development. Systematic performance appraisal also
provides both the firm and the employee a careful evaluation, rather than a snap judgement of an
employee's performance. Many firms use performance appraisals to plan placements and
transfers and to provide input into decisions regarding salary increases, promotions, and
transfers. Finally, performance appraisals may be used as a basis for the coaching and
counselling of individual employees by their superiors. To summarize the uses of performance
appraisal:

Performance improvement
Compensation
Placement
Training & development needs assessment
Career planning
Job design error detection

CHARACTERISTICS OF AN APPRAISAL SYSTEM

Performance appraisal cannot be implemented successfully unless it is accepted by all
concerned. There should be a common and clear understanding of the distinction between
evaluation and appraisal. As Patten (1982) argues, evaluation aims at 'objective' measurement,
while appraisal includes both objective and subjective assessment of how well an employee has
performed during the period under review. Thus performance appraisal aims at 'feedback,
development and assessment.' The process of performance appraisal should concentrate on the
job of an employee, the environment of the organization, and the employee him- or herself.
These three factors are inter-related and inter-dependent. Therefore, in order to be effective, the
appraisal system should be individualized, subjective, qualitative and oriented towards problem-
solving. It should be based on clearly specified and measurable standards and indicators of
performance. Since what is being appraised is performance and not personality, personality traits
which are not relevant to job performance should be excluded from the appraisal framework.

Some of the important considerations in designing a performance appraisal system are:

 Goal The job description and the performance goals should be structured, mutually decided
and accepted by both management and employees.

 Reliable and consistent Appraisal should include both objective and subjective ratings to
produce reliable and consistent measurement of performance.

 Practical and simple format The appraisal format should be practical, simple and aim at
fulfilling its basic functions. Long and complicated formats are time consuming, difficult to
understand, and do not elicit much useful information.

 Regular and routine While an appraisal system is expected to be formal in a structured
manner, informal contacts and interactions can also be used for providing feedback to
employees.

 Participatory and open An effective appraisal system should necessarily involve the
employee's participation, usually through an appraisal interview with the supervisor, for
feedback and future planning. During this interview, past performance should be discussed
frankly and future goals established. A strategy for accomplishing these goals as well as for

improving future performance should be evolved jointly by the supervisor and the employee
being appraised. Such participation imparts a feeling of involvement and creates a sense of
belonging.

 Rewards Rewards - both positive and negative - should be part of the performance appraisal
system. Otherwise, the process lacks impact.

 Feedback should be timely Unless feedback is timely, it loses its utility and may have only
limited influence on performance.

Impersonal feedback Feedback must be impersonal if it is to have the desired effect. Personal
feedback is usually rejected with contempt, and eventually de-motivates the employee.

 Feedback must be noticeable The staff member being appraised must be made aware of the
information used in the appraisal process. An open appraisal process creates credibility.

 Relevance and responsiveness Planning and appraisal of performance and consequent
rewards or punishments should be oriented towards the objectives of the programme in which the
employee has been assigned a role. For example, if the objectives of a programme are directed
towards a particular client group, then the appraisal system has to be designed with that
orientation.

 Commitment Responsibility for the appraisal system should be located at a senior level in
the organization so as to ensure commitment and involvement throughout the management
hierarchy.

WHAT IS THE ROLE OF PERFORMANCE APPRAISAL?

We've seen from previous discussions, that people are one of a company's most valuable assets.
While most assets depreciate over time, people, viewed as assets, may actually appreciate. One
of the manager's major responsibilities is to improve and update the knowledge and skills of
employees -- appreciation of assets. Performance appraisal plays a significant role as a tool and
technique of organizational development and growth. In essence, effective appraisal systems
provide both evaluation and feedback.The main aim of the evaluation is to identify performance

gaps -- when performance does not meet the organizational standards -- whereas feedback is
necessary to inform employee about those performance gaps.

From the employee's perspective, performance appraisal informs them about what is required of
them in order to do their jobs, it tells them how well they have achieved those objectives and
helps them take corrective action to improve their performance, and, finally, it may reward them
for meeting the required standards.

The firm, on the other hand, needs a performance appraisal system in order to establish
principles of managerial accountability. Clearly, where employees are given responsibilities and
duties, they need to be held accountable. One of the functions of performance appraisals is to
ensure that people are accountable for their organizational responsibilities.

Perhaps the most significant benefit of performance appraisals is the opportunities they provide
supervisors and subordinates to have one-on-one discussions of important work issues. During
appraisals, subordinates and supervisors can focus on work activities and goals, identify and
correct existing problems, and encourage better future performance.

Performance Appraisal and Motivation

Motivational research has recognized the power of recognition as an incentive (see Maslow and
the Expectancy Theory of Motivation). Performance appraisals provide employees with
recognition for their work efforts. The appraisal system provides the supervisor with an
opportunity to indicate to employees that the organization is interested in their performance and
development. This recognition can have a positive motivational influence. on the individual's
sense of worth, commitment and belonging.

Performance Appraisal and Training and Development

Performance appraisals identify performance gaps. As such, they provide an excellent
opportunity for a supervisor and subordinate to recognize and agree upon individual training and
development needs. Performance appraisal discussion may identify the presence or absence of
work skills. Further, the need for training can be made more relevant if attaining the requisite job

skills is clearly linked to performance outcomes. Consolidated appraisal data can also help form
a picture of the overall organizational training requirements.

Performance Appraisal and Recruitment

Recruitment and selection procedures need to be evaluated. Appraisal data can be used to
monitor the success of a firm's recruitment and selection practices. From this data, the firm can
determine how well employees who were hired in the past are performing.

Performance Appraisal and Employee Evaluation

Employee evaluation is a major objective of performance appraisal. Given the major functions of
management -- planning, organizing, leading and controlling -- it is clear that evaluations
(controlling) need to be done.

At its most basic level, performance appraisal is the process of examining and evaluating the
performance of employees. However, the need to evaluate is also a source of tension as
evaluative and developmental priorities appear to clash. Some management experts have argued
that appraisal cannot serve the needs of evaluation and development at the same time.

Performance Appraisal and Total Quality Management (TQM)

With the advent of TQM (Total Quality Management) and the extensive use of teams, traditional
performance appraisal systems have come under some criticism. For example, rather than
motivating employees, conflict may be created when appraisals are tied to merit pay and when
that merit pay is based on a forced ranking.

W. Edwards Deming, the founder of total quality management (TQM) has long been associated
with the view that performance appraisals ought to be eliminated. Many TQM proponents claim
that performance appraisals are harmful.

PERFORMANCE APPRAISAL - PROCESS MAP

PERFORMANCE APPRAISAL METHODS

1. Graphic rating scale

2. Paired Comparison

3. Forced choice approach

4.Easy Appraisal

5.3600 appraisal

Graphic Rating Scale: A performance appraisal that rates the degree to which the employee
has achieved various characteristics.

1)The graphic rating scale is the most common type of appraisal used.

2)Various characteristics such as job knowledge or punctuality are rated by the degree of
achievement.

3)The rate usually receives a score of 1 to 5, with 5 representing excellent performance.

4)Some forms allow for additional comments.

Paired-comparison Approach: A performance appraisal that measures the relative
performance of employees in a group.

1)This is a method of performance evaluation that results in a rank ordering of employees to
come up with a best employee.

2)This type of approach measures the relative performance of employees in a group.

Forced-choice Approach: A performance appraisal that presents the appraiser with sets of
statements describing employee behavior; the appraiser must choose which statement is most
characteristic of the employee and which is least characteristic.

Easy Appraisal: Sometimes the supervisor must write a description of the employee‟s
performance. The easy appraisal is often used along with other types of appraisals, notably

graphic rating scales. They provide an opportunity for supervisors to describe aspects of
performance not thoroughly covered by an appraisal questionnaire.

360-degree Performance Appraisal: Evaluating Employees From All Angles

Traditional performance appraisals, as discussed above, can be both subjective and simplistic.
At times, they can also be deemed to be "political". In an attempt to improve this methodology,
some companies have turned to 360-degree appraisals. 360 appraisals pool feedback from a
department's internal and external customers to ensure a broader, more accurate perspective of an
employee's performance.

360-degree performance appraisal is an attempt to answer the question: "How can a supervisor
evaluate an employee he or she sees only a few hours each week?"

Benefits of Performance appraisal
For the organization:
The organization comes to know the true position of the employees working capacities and the
problems they face while working in the organization. This performance appraisal system also
acts as a motivating factor for the employees, which helps the organization to get better results.

For the appraise:
The appraise fells themselves an important part of the organization, they get a chance to express
their views in front of their superiors; they get a platform to express their ideas. The employee
comes to know the truth about:
 To what extent they have achieved their objectives.
 In what respect their work has been most successful.
 Are there any aspects of their work, which they have not completed?

Are many other question, which make them assess rightly. ..
Guidelines for effective performance evaluation interviews...

emphasize positive aspects of employee performance
tell employee that the purpose is to improve performance, not to discipline
conduct the review in private
review the performance formally at least annually (more frequently for those performing
poorly)
make criticisms specific
focus on performance, not personality
stay calm; do not argue
identify specific actions the employee can take to improve performance
emphasize the evaluator‟s willingness to assist the employee‟s efforts to improve
performance
end by stressing positive

Appraisal Process

In order to obtain a better understanding of how the performance appraisal has been put together
by The Corporation, the researcher has provided an overview of the company‟s performance
appraisal process. The researcher felt that the overview of the performance appraisal process
would be necessary, since the process provided a framework for the performance appraisal.

PRE-APPRASIAL STEPS

The performance evaluation can be made for variety of reasons counseling, promotions, salary
increases, administration or combination of these. It becomes very necessary to begin by stating
the objectives of evaluation programs very clearly and precisely. The personal appraisal system
should address the question who, what, how of performance appraisal.

These questions are the components of these appraisal systems which are discussed below
individually.

“WHO “OF THE APPRAISAL OR „‟WHO‟‟ IS TO RATE.

The immediate superior, the head of the department or any other can rate the performance of an
individual. In addition to this, sum organizations follow the system of self appraisal and /or

appraisal by peers. A group, consisting of his senior, peers and subordinates, can do appraisal,
whoever is rating; he should be trained and impartial. In most of the organizations the ratings is
done by his immediate superior who is considered the best person to understand his subordinates
strengths and weaknesses. Now a day some organizations are following the method of self-
appraisal.

THE “WHAT”OF APPRAISAL It is considered with

 Creating and maintaining a satisfactory level of performance of employees in their present
job.
 Highlighting employee‟s needs and opportunities of for personal growth and development.
 Aiding in decision making for promotions, transfers, layoff and discharges.
 Promoting understanding between supervisors and his subordinates.
 Providing a useful criterion for determining the validity of selections and training methods
for attracting individuals of higher caliber to the organization.

THE „WHEN‟ OF APPRAISAL

The „when‟ answers the query the frequency of appraisal? The informal counseling should
occur continuously but the manager should discuss an employee‟s work as soon as he gets an
opportunity to provide positive reinforcement and use poor work as basis of training. The time
and period of appraisal differs according to the need and nature of the organization.

THE „WHERE‟ OF APPRAISAL

The where indicates the location where employee should be evaluated? It is usually done at
work place or office of the supervisor.

THE „HOW‟ OF APPRAISAL

Under this, the organization must decide what different kinds of methods are available and which
of these may be used for performance appraisal. On the basis of comparative advantages and
disadvantages, the nature and philosophy of management and the needs of an organization; the
method of appraisal is decided.

COMPANY PROFILE

Jindal Brothers Pvt. Ltd. specializes in Design, Engineering, Fabrication and Erection of Pre-
Engineered Metal Building Systems. The Group is well known in the Middle East & India for
the quality of the products and services offered. In 1998, Jindal Brothers Pvt. Ltd started its
journey in India by setting up State of Art manufacturing facility at Manesar, Gurgaon. Design
and Detailing work is carried out by highly skilled Engineers with computed aided design and
drafting facilities at the Company‟s Head Office at New Delhi. Their objective is to deliver cost
effective, quality Pre-Engineered Metal Buildings within agreed time schedules to their
Customers. Jindal Brothers Pvt. Ltd. maintains high degree of professionalism at all levels, a
commitment needed to maintain highest possible standards. Every project is executed with
Micro Planning, to achieve the Milestones set out in the contract. This combined with quality of
their products has earned us reputation in the Market Place. Corporate giants, both National and
Multinational, have complimented their strategy of providing single point responsibility for
Supply and Erection with highly motivated and trained In House Project Management Team to
handle projects, whether it is small or big, simple or complex. More than 500 Pre-Engineered
Buildings have been installed across the length and breadth of their Country. This experience
corroborates their claim. Regional / Area offices across the Country are fully equipped to provide
pre-order and post order service to their valued Customers. Organizational effectiveness depends
upon the level of performance of its employees. Hence the level of performance has to be
ensured. Periodic stock taking of the qualitative state of the man power is of vital importance to
an organization and the organization tries to collect the relevant data through the tool of
performance appraisal reports. Thus performance appraisal is essential for performance
effectiveness and efficiency of the organization and also for carrying out administrative decisions
regarding human resources. The correctness of the decision will depend heavily upon the validity
of the data gathered through appraisal system.

The JINDAL BROTHERS is a relatively an older organization and has been restructuring its
Human Resources Systems and Policies in alignment with the current business environment. I
have therefore taken up this project with an aim to study the existing system of performance
appraisal so that this might help other organizations to follow the same.

Services

Pre-Engineered steel buildings are designed and fabricated to client‟s requirements in accordance
with the Universal standards. A pre-engineered steel building consists of four major groups of
components namely primary members, secondary members, metal roofing/wall cladding and
connection fasteners. These components are designed that they are compatible with each other.
The fabrication of these components is carried out in factory under strict quality control as per
detailed shop drawing. These components are transported to site with proper markings and
assembled at site as per erection drawings.

Knowledge Hub / Brain Ware

They call this the knowledge Hub, a world class Design & Engineering Office manned with
team of experienced professionals and equipped with latest sophisticated design tools which
distinguishes Jindal Brothers Pvt. Ltd. from others.

Stadd Pro, MBS, AUTOCAD, Primavera, MS Projects are among the few Engineering &
execution tools in use at Jindal Brothers Pvt. Ltd. that delivers the fastest solution at the best of
engineering practices applied in a true international design environment.

The Brain House offers intelligent engineering solutions and supports post order functions with
general arrangement, fabrication and erection drawings. The computerized drafting, detailing and
logic programs enable user friendly details to simplify manufacturing process and erection
methods.

The Jindal Brothers Pvt. Ltd. knowledge archives has vanity of standards and design codes such
as AISC, AISI, MBMA, AWS, UBC, ASCE, IBC, IS and many others to suit customer‟s need of
a Pre-Engineered building at any place or country.

The Jindal Brothers Pvt. Ltd.‟s consistent efforts in research & development and global sourcing
of material have positioned the Organization as a lead runner in introducing innovative ideas and
products in the market place.

Manufacturing Facility:

 Their State-of-the-art manufacturing facility is located at Manesar. It houses special
equipments to produce quality pre-engineered buildings such as:
 Automatic Beam Welding Line
 Plate Shearing Line
 Radial Drilling Machine
 Cold Roll Forming Line
 Hydraulic Press Break Line
 Automatic Shot Blasting Line
 The welding process is as per American Welding Society Standards. (AWS). All welders are
qualified to required standards.
 Well defined process on the shop floor ensures smooth flow of material and productivity.
 All structural components to complete Pre-engineered building are produced in-house and go
through stringent quality checks prior to dispatch.
 All major raw materials and bought out items are sourced from a Panel of approved supplier
to ensure quality and timely supplies.

Automatic Purlin Roll
Roofing Profile
Welding Forming
Line
Machine Machine

JINDAL BROTHERS India Projects:::

Location Client
Washim ITC

Grain Godown

Cafeteria

Dept. Store

Bawal YKK (SMCC Construction)

Jagdishpur ITC

Grain Godown

Cafeteria

Vatva , Ahmedabad MIDCO Containers Pvt. Ltd

Delhi Giex Foods

Pune S.M. Auto Eng.

Mandsour ITC

Grain Godown

Cafeteria

Dept. Store

Amaravati ITC

Dept. Store

Gurgaon SMCC

Chandouli ITC

Daman Enercon

Delhi Food Processing Equipment

Bhuj Essar Construction

Delhi Jindal Stainless

Delhi Honda Siel

Sri Perumbudur Saint-gobain

Faridabad Tata Iron And Steel Co.

Gurgaon Smcc - Kienfie

Gurgaon Smcc - Kinzoku

Kanpur Hargovind Bajaj

Aurangabad Gran Electronics

Chennai Ameco Infrastructure

Delhi Manmohan Pipes

Daman Blossom Industries

GreenPly Industries

Gurgaon SMCC – Honda

Gurgaon SMCC – Honda

Hyderabad HBL Nife

Chenani Meredian Apparel

PERFORMANCE APPRAISAL AT JINDAL BROTHERS

While on the job, performance reviews of every employee are done every quarter. The reviews

are done with a view to helping the individual excel at his/her workplace. In case there are any

training requirements, these are noted and acted upon in the coming quarter. Also, the goals and

objectives for the employee are re-visited for

The performance appraisal mechanism is carried out at Jindal Brothers for promotional purposes

These are done so as to motivate the employee and improve his performance level. The method

is as follows:

a) Establishment of performance standards with the employees

b) The goals are set mutually as per measurable standards.

c) The actual performance is hence measured.

d) After measuring of the actual performance, the same is compared with the standards set

e) The appraisal is then discussed with the employees.

f) And finally, if need arises corrective action is initiated. For this purpose the corrective action

is actually identified through brainstorming exercises initiated by the departmental heads at

all the Jindal Brothers. It is then measured as a tool to evaluate the past performances of the

employees.

Some of the methods used at Jindal Brothers are:

1. Key Performance Index

2. 360 Degree Feedback

3. Paired Comparisons

4. Behaviorally Anchored Rating Scale

1. KPI-Key Performance Index

It is based on the performance level of the employee generally classified on the basis of:

Targets achieved

Ratings through students‟ feedback forms

Punctuality and regularity

Day to day performance

This is given after every module at the centers.

Thus we can observe that the appraisal system is not a biased one but based on performance and

productivity basis. All the respective heads of the employee together with the senior persons at

the center brainstorm and then give the promotion.

2. 360 Degree Feedback

This feedback system involves the participation of Top Management.

Thus the feedback given by these members at Jindal Brothers is considered under a holistic view

and then the employee is given a performance appraisal. This evaluation method involves 40%

feedback from the coworkers which says that the employee should not only maintain good

rapport with the senior or junior but majorly with the coworkers also.

3. Paired Comparisons

The evaluator compares all possible pairs of subordinates on their overall ability to do the job.

Due to the subjectivity of evaluating overall performance some managers me e a number of

different job related dimensions when comparing.

4. Behaviorally Anchored Rating Scale (BARS)

It is a sophisticated method of evaluating the employee based on the employee behavior. It is a

numerical scale that is anchored by the seniors of the organization at various centers. This is

highly confidential and the information is sent in sealed envelopes and opened only at the time of

the final evaluation. There is no further discussion regarding this scaling, thus it is not given

enough weightage.

OBJECTIVES OF THE STUDY

To identify the technique of Performance Appraisal followed in Jindal Brothers Pvt. Ltd.
To study how the employees are rated against these parameters
To identify how the performance of the employees is improved and enhanced
To provide suggestions & recommendations to improve their Performance Appraisal

RESEARCH METHODOLOGY

In order to accomplish the objectives of the study, it is essential to articulate the manner in which

it is to be conducted, i.e., the research process is to be carried-out in a certain framework. The

research methodology, which follows, is the backbone of the study.

Data Collection Sources

Research work was done from two sources: -

(1) Primary data

(2) Secondary data

Primary data was collected by questionnaire and interview in the organizations. The
questionnaire comprised of closed and attitude questions. The opinion on existing Performance
Appraisal practices and their affectivity were collected through questionnaire which was
circulated to all the employees at all levels and the results have been analysed on the basis of
agree and disagree. The methodology for collection of data also included interviews and
discussion with the top management of the organization.

Secondary data: It was collected by reviewing different literatures, from published books,
management journals, articles published by the other researchers on 360 Degree Appraisal.

Sampling:

The total sample size for this project was 4 HR people at Jindal Brothers.

The information collected through above methods has been tabulated, analysed and interpreted.
Finally an overall assessment of the contribution of top management has been made towards
improving the effectiveness of the organization.

TYPES OF RESEARCH

Research methodology is a way to systematic solve the Research Problem. It is a procedure,
which is followed step by step to solve a particular research problem.

There are basically four types of researches:

1 EXPLORATIVE RESEARCH
2 DESCRIPTIVE RESEARCH
3 DIAGNOSTIC RESEARCH
4 HYPOTHESIS TESTING RESEARCH

Explorative Research:- To gain familiarity with phenomenon or to achieve an insight into it.

Descriptive Research:-To poetry accurately the characteristics of the particular individual
situation or a group.

Diagnostic Research:-To determine the frequency with which something occurs or with which
it is associated with something else.

Hypothesis Testing Research:-To test a hypothesis of casual relationship between variables.

The present project is Descriptive cum Explorative in nature. It is done to poetry accurately
the characteristics of a particular individual situation or a group. The major purpose of the
descriptive research is the description of the state of the affairs as it exits at resent. The main
characteristics of this method are that the researcher has no control over the variables; he can
only report what has happened or what is happening.

LITERATURE REVIEW

Organizations exist to achieve goals. Goals are only met when individual employees efforts
matches with policy of the organization and thus bringing out success and effectiveness. The
assessment of how successful employees have been at meeting their individual goals therefore
becomes a critical part of HRM and here comes Performance Appraisal System.

Performance appraisal is an important component of the information and control system. In
today‟s flexible organizations, performance evaluation provides an important way for managers
to clarify performance goals and standards and to enhance future individual performance. Thus
the purpose of performance appraisal is to improve the organization‟s performance through the
enhanced performance of individuals.

The performance appraisal system:

Is an organizational necessity

Is based on well defined objective criteria

Is based on careful job analysis

Uses only job related criteria

Is supported by adequate studies

Is applied by trained qualified raters

Is applied objectively throughout the organization

Can be shown non discriminatory as defined by law

PERFORMANCE APPRAISAL AND MANAGEMENT,

Journal of Performance Appraisal Techniques November 4,2001-Vol.1,No.4pp.418 By
Fletcher C
Performance appraisal has widened as a concept and as a set of practices and in the form of
performance management has become part of a more strategic approach to integrating HR
activities and business policies. As a result of this, the research on the subject has moved beyond
the limited confines of measurement issues and accuracy of performance ratings and has begun
to focus more of social and motivational aspects of appraisal. This article identifies and discusses

a number of themes and trends that together make up the developing research agenda for this
field. It breaks these down in terms of the nature of appraisal and the context in which it
operates. The former is considered in terms of contemporary thinking on the content of appraisal
(contextual performance, goal orientation and self awareness) and the process of appraisal
(appraiser–appraisee interaction, and multi-source feedback). The discussion of the context of
appraisal concentrates on cultural differences and the impact of new technology.

Performance Appraisal as Effective Management or Deadly Management Disease
Journal of Performance Appraisal Management Jan1,2005- Vol.80, Pages18 by Gregory H.
Dobbins

Understanding person and system sources of work variation is fundamental to performance
appraisal. Two divergent perspectives on this issue, the traditional human resource management
view and the statistical process control view (Deming, 1986), are contrasted. Two studies are
reported that investigate two specific questions that arise from a broader view of the appraisal
process. Results indicate that managers and subordinates believe that typical poor performance
has different causes and that actual productivity levels far outweigh person or system sources of
performance variance in appraisal judgments.

A Contingency Approach to Appraisal Satisfaction
Journal of Performance Appraisal Approaches,July2009,Vol.49,Pages65 by Gregory H.
Dobbins

The present study explored the moderating effects of organizational variables on the appraisal
characteristic-appraisal satisfaction relationship. Analyses indicated that the appraisal
characteristics of action plans, frequency, and rater training were more positively related to
appraisal satisfaction when subordinates experienced role conflict, were not closely monitored,
and supervisors had a large span of control. The results provide substantial support for
conceptualizing appraisal satisfaction as a contingent function of both appraisal characteristics
and organizational variables. Implications of the findings for the design of appraisal systems,
appraisal effectiveness, and future research are discussed.

Differential Performance Appraisal Criteria
Journal of Performance Appraisal Criteria,Oct2010,Vol.18, pages 72 by Taylor Cox

Performance appraisal ratings of 125 first-level managers were analyzed to investigate the degree
to which the criteria used to evaluate the overall job performance of black managers differs from
that used to evaluate white managers. The performance appraisal form included items that
measured both the social behavior dimension and task/goal accomplishment dimension of job

performance. The appraisal ratings of both groups on each dimension were correlated with
measures of overall job performance and promote ability. Results indicated that social behavior
factors are more highly correlated with the overall job performance of black ratees than for white
ratees. Implications of these results for both black managers and organizations are discussed.

A Restatement of the Satisfaction
Journal of Performance Hypothesis,Vol.59,Sept 2010,Pages 45 by Dennis W. Organ,
This article reviews recent evidence in support of Organ‟s (1977) argument that satisfaction more
generally correlates with organizational prosaically or citizenship-type behaviors than with
traditional productivity or in-role performance. An attempt is then made to interpret just what it is
in satisfaction measures that provides this correlation, leading to the suggestion that fairness
cognitions comprise the major factor. Implications of this interpretation for theory, research, and
management practice are offered.

ANALYSIS & INTERPRETATION

This chapter deals in tabular presentation results and their analysis for the purpose of easy

reading the section has been divided into two parts.

* Tabular form of Response

* Inference

* Remarks on each question

1. In your company, the key competencies required for each job are already identified?

Response Category No. of responses Percentage

Very true 0 0

True 4 8

Partly true 9 18

Not true 37 74

80
70
60
50
Very true
40
30 True
20
Partly true
10
0 Not true
No. of responses

Inference: Most of the respondents (74%) found the above statement to be „Not True”. This was
followed by 18% of the respondents feeling that this statement was „Partly True‟ for their
organization. Only 8% of the people found it to be „True‟.

Remarks: Although the appraise does not have a clear understanding of what is expected of him
at the beginning of the year (Inference I), both he and the appraiser know what his job is all
about. This also shows that although an employee knows what his current to do to be rated
higher by the reporting officer. The responsiveness in category of Partly True and Not True may
be due to the face that job content in Jindal Brothers is flexible and not well defined and some
people find it difficult to define their jobs. However, most of the people have a general idea of
the scope of their jobs.

2. There are mechanisms that help employees develop their potential for the next round of
job?


Very true 0 0

True 5 10

Partly true 25 50

Not true 20 40

50
45
40
35
30 Very true
25
20 True
15
10 Partly true
5
0 Not true
No. of responses

Inference: Quite a large number of respondents (40%) shared the view that the appraisal system
did not give a clear understanding of all appraisals, job to both appraiser and appraise by saying
that it was „Not True‟. Only 50% and 10% of the respondents felt that the statement was „True‟
and „Partly True‟ respectively.

Remarks: Although the appraise does not have a clear understanding of what is expected of him
at the beginning of the year (Inference I), both appraise and the appraiser know what his job is all
about. This also shows that although an employee knows what his current to do to be rated
higher by the reporting officer. The responsiveness in category of Partly True and Not True may
be due to the face that job content in Jindal Brothers is flexible and not well defined and most
people find it difficult to define their jobs. However, most of the people have a vague idea of the
scope of their jobs.

3. Employees regularly receive feedback about their potential for higher level jobs?

Very true 0 0

True 8 16

Partly true 7 14

Not true 35 70

70
60
50
40 Very true
30 True
20
Partly true
10
0 Not true
No. of responses

Inference: 70% of the respondents agreed that the appraisal system did not helped them to know
their potential to perform at higher levels. Plan their performance well by saying that it was „Not
True‟. Only 16% and 14% people felt that this statement was „True‟ and „Partly True‟.

Remarks: The above inference shows that the PA system in Jindal Brothers does not give
feedback about „planning for performance‟ to its employees. It helps anticipating work needs in
order to arrange work in logical order. It also helps in devising efficient methods to attain pre-
determined plans. Again due to flexibility in job content, some people may have found problems
in planning their performance systematically.

4. Job rotation is practiced widely to help people develop their potential in new areas?


Very true 7 14

True 18 36

Partly true 25 50

Not true 0 0

50
45
40
35
30 Very true
25
20 True
15
10 Partly true
5
0 Not true
No. of responses

Inference: About 50% of the respondents felt that the above statement was „Partly True‟. It was
followed by 36% people feeling that it was „True‟ with 14% believing that it was „Very True‟.

Remarks: Job rotation is the most economical way of providing training to the employees. It
facilitates both organization and individual development. Job rotation gives an individual hand
on experience for carrying out various different functional activities. The performance appraisal
system should include this process in the training need identification performance.

5. The appraisal system provides an opportunity for self-review and reflection?

Response Category No. of Responses Percentage
Very true
0 0

True
0 0

Partly true
13 26

Not true 37 74

80
70
60
50
Very true
40
30 True
20
Partly true
10
0 Not true
No. of Responses

Inference : There is a general agreement on then fact that the PA system in Jindal Brothers does
provide ample opportunity for self-review and reflection. 74% of the people felt that
it was „Partly True‟ with 26% agreeing.

Remarks : The presence of self-appraisal procedure in the PA appraisal system is an important
reason for the above inference. The self appraisal includes questions on major
achievements, constraints in performance, type of training required, tasks/activities
undertaken successfully during the year, problems faced etc. It also includes
suggestions on making the job interesting and challenging and plans to improve
effectiveness. Due to this fact, employees may have felt that they were participating
actively in their own appraisal by self -review and reflection on various issues.

6. Promotions are based strictly on need rather than to reward individuals?


Very true 0 0

True 4 8

Partly true 25 50

21 42
Not true

50
45
40
35
30 Very true
25
20 True
15
10 Partly true
5
0 Not true
No. of Responses

Inference : 50% of the respondents believe that the above statement is „Partly
True‟ This was closely followed by 42% of the respondents rating it as
„Not True‟ and 8% of the respondents feeling that it was „True‟.

Remarks : The performance appraisal is completely need based the organization
recognizes and promotes high achievers only if there are vacancies
available in the organization. This has a negative impact on people who
are not rewarded and promoted duly for their good performance. There
should be a system of rewarding employees either in monetary terms or
in terms of recognition.

7. The appraisal system gives each appraisee an idea of what is expected of him next year?


Very true 0 0

True 10 20

Partly true 26 52

14 28
Not true

60
50
40
Very true
30
True
20
10 Partly true

0 Not true
No. of Responses

Inference : 52% of the respondents felt that the above statement was „Partly
True‟. This was followed by 28% and 20% of the respondents
feeling that it was „Not True‟ and „True‟ respectively.

Remarks : Each employee needs to have an idea as to what accountabilities
will he have if his appraisal is given a good remark for working at
higher levels. The appraisee should know his potential, which
will go a long way in his higher level jobs.

8. It is designed to aid the appraisee and appraiser jointly understand the formers job?


Very true 0 0

True 14 28

Partly true 22 44

14 28
Not true

45
40
35
30
25 Very true
20
True
15
10 Partly true
5
0 Not true
No. of Responses

Inference : There was a mixed response to the given statement. 44% of the responses
consisted of “Partly True‟ ratings. 28% respondents believed that this was
„Not True‟ whereas 28% believed that this was „True‟.

Remarks : The above inference implies that Jindal Brother‟s PA system does not score
well in the aspect of transparency in communicating an employee‟s
performance through performance review and discussion. The discussions
between appraisal processes. The interaction on self appraisals is not a
common feature and is only done on certain occasions (exceptionally good or
bad performance etc.) The presence of 44% responses as “True” may be due
to good relationship and open communication shared by some of the
appraiser appraise pairs.

9. The performance appraisal provides an opportunity for self review and reflection?

very true 0 0
true 2 4
partly true 25 50
not true 23 46

50
45
40 very true
35
30
25 true
20
15
10
5 partly true
0
No. of Responses
not true

Inference : Most of the respondents agreed that the appraisal system catered to their
development needs (50% believed that it was “Partly True”) and it was very
closely followed by 46% saying it was “Not True”. There were 4% cases,
which believed that it was „True‟.

Remarks : Although the inference indicates that the PA system allowed mutuality, trust
and open communication between superior and subordinates, there may be
chances of biases in employees while rating this statement. The answers may
have varied depending on proximity etc.

10. The appraisal procedure allows the appraisee to express his developmental needs?

very true 0 0
True 8 16
partly true 16 32
not true 26 52

60
50 very true
40
30 True
20
10 partly true
0
No. of Responses
not true

Inference : The most common response on above statement was an astounding „Not
True‟ with 52% people agreeing that the PA system was free of any biases. It
was followed by 32% saying that it was „True‟ and 16% saying that it was
„Partly True‟.

Remarks : The above inference implies that people are satisfied with the PA system in
Jindal Brothers and believe that it provides scope for developing their
potential. This may be due to the fact that the self appraised of the appraise
invites suggestions on job enrichment, training needs and steps to be taken to
improve individual‟s effectiveness.

11. The system has scope to correct the biases of the assessor through a super review?

very true 0 0

true 2 4

partly true 14 28

not true 34 68

70
60
very true
50
40
30 true
20
10 partly true
0
No. of Responses
not true

Inference : 68% of the people rated the above statement as „Not True‟ 28% believed it was
„Partly True‟ with 4% disagreeing by saying that it was „True‟.

Remarks : A performance appraisal system, which is perceived as „bias -free‟ by its
executives, is an achievement for the organization. In the PA system the
reporting officer appraises a section of people whereas the reviewing officer
appraises the performance of an entire department. also the reviewing officer is
the immediate superior of reporting officer. Any disagreement between the
assessments of an employee has to be duly discussed and recorded. Also, any
noticeable difference of opinion between self appraisal and appraisal by
reporting officer has to be accounted for. All the above factors help in correcting
the biases,. if any, of reporting officer.

12. The appraisal system provides for a frank discussion between appraiser and appraisee?

very true 0 0

True 6 12

partly true 0 0

not true 44 88

90
80
70 very true
60
50
40 True
30
20
10 partly true
0
No. of Responses
not true

Inference: An astounding 88% rated the above statement as not true with 12% that it was
true.

Remarks Although, most of the people felt that there was mutuality and trust between
appraiser and appraise, it may again depend on the proximity and relationship
shared by an employee and his/her boss. The ratings may be based, as the
employees may have felt that a negative answer may adversely affect them. The
reason behind this conclusion is that a low score on extent of communication and
discussion between appraisers and appraise and high score on mutuality and trust
give a contradictory view.

13. What kind of an appraisal system will bring out the best of an employee?

appraisal by all superiors 10 20
appraisal by immediate 5 10
superior

appraisal by reference team 15 30
appraisal by reference team 20 40
and self.

appraisal by all
40
superiors
35
30
25 appraisal by
immediate
20
superior
15
10 appraisal by
5 reference team
0
No. of Responses appraisal by
reference team
and self.

Remarks : This shows that the relationship between appraiser and appraise, in Jindal
Brothers, with respect to planning the performance is quite good. The
subordinate in planning his performance. The appraiser helps the appraise
in testing the soundness of his goals as well as of his plans for achieving
them. This implies that there is active participation of both appraiser and
appraise in performance planning. The reason behind „Not True‟ answer
may be due to the fact that many jobs in Jindal Brothers are not well
defined and therefore an elaborate planning on them is not done.

FINDINGS

Organization Structure and Design

1- Jindal Brothers is a young, dynamic organization and is going strong on the stock market.

2- The company is well aware of the dynamic environment of software, it is operating and

in order to keep it with the pace of the environment it believes in constant up gradation of

courses. Organization structure and design of the company is such that it supports this

change.

3- Jindal Brothers has a matrix kind of a structure wherein it takes the form of combination

of structures. Matrix structures are adopted became there is more than one factor around

which the structure can be built.

4- This matrix structure at Jindal Brothers improves the quality of decision-making where

interest conflicts arise and direct contacts replaces bureaucracy

5- . This increases the motivation of the managers and development of wider involvement in

strategies. Although at times the company faces high risk of dilution of priorities became

e people do not know who is responsible for what.

6- An organization is a network of authority, responsibility and relationships. Different

organization structure consists of different type of relationships.

RECOMMENDATIONS

1. To improve attendance there should be rewards for those employees who attains above
95% attendance.

2. There should be training sessions to improve team building.

3. There should be proper training for appraisal to the employees.

4. In the beginning of the year employee must know the performance standards on which
his/her performance will be judged in end of year.

5. More stress relieving packages should be offered to the mentally stressed staff.

6. Overtime should be taken care of at time of performance appraisal, which would motivate
the employees to perform better for longer hours.

7. Performance appraisal should after at proper span of time .

8. Performance appraisal should be done by expert person.

CONCLUSION

Performance appraisal is the process of reviewing employee performance vis-à-vis the set
expectations in a realistic manner, documenting the review, and delivering the review verbally in
a face-to-face meeting, to raise performance standards year over year through honest and
constructive feedback. In the process management expects to reinforce the employee‟s strengths,
identify improvement areas so that one can work on them and also set stretched goals for the
coming year.

Effective performance management requires a good deal of face-to-face supervisor-employee
interaction. By knowing the subordinates, a supervisor can steer them onto a path of greater
productivity and optimized output. It is one of the most significant and indispensable tool for an
organization as it helps in getting to know the people who work for them. provides information,
which helps in taking important decisions for the development of an individual and the
organization.

QUESTIONNANIRE

I have undertaken a project on PERFORMANCE APPRAISAL SYSTEM. The information furnished by you
will help knowing the effectiveness of the present appraisal and reward system and if need be designing
of a new appraisal system. The data will be kept confidential and will be used for academic purpose
only.

1. In your company, the key competencies required for each job are already identified.

a) Very true b) true

c) Partly true d) not true

2. There are mechanisms that help employees develop their potential for the next rung of job.

a) very true b)true

c) partly true d) not true

3. Employees regularly receive feedback about their potential for higher level jobs

a) very true b)true


4. Job rotation is practiced widely to help people develop their potential in new areas.

a) very true b)true


5. Your company’s promotion policies are clearly defined and shared with all employees.

a) very true b)true


6. Promotions are based strictly on need rather than to reward individuals?

a) very true b)true


7. The appraisal system gives each appraisee an idea of what is expected of him next year?

a) very true b)true


8. It is designed to aid the appraisee and appraisers jointly understand the former’s job?

a) very true b)true


9. The performance appraisal provides an opportunity for self review and reflection?

a) very true b)true


10. The appraisal procedure allows the appraisee to express his developmental needs?

a) very true b)true


11. The system has scope to correct the biases of the assessor through a super review?

a) very true b)true


12. The appraisal system provides for a frank discussion between appraiser and appraisee?

a) very true b)true


13. The procedure allows for the communication of CEO‘s goal to the workforce?

a) very true b)true


14. The appraisal system brings out the training needs of the employees.

a) very true b)true


15. The performance appraisal system clarifies the career prospects, aspirations and intentions.

a) very true b)true


16. The appraisal system provides a rational basis for salary recommendations.

a) very true b)true


17. The company relates reward to your performance.

a) very true b)true


18. What kind of an appraisal system will bring out the best of an employee?

a) appraisal by all superiors b) appraisal by immediate superior

c) appraisal by reference team c) appraisal by reference team and self.

19. How do you support your subordinates?

_____________________________________________________________________________________
_____________________________________________________________________________________
____________________________________.

Bibliography

Aswathappa K, Human Resource & Personnel Management, Tata McGraw- Hill
Publishing Co. Ltd., New Delhi, Sixth edition 2001

Kothari C.R., Research methodology methods & techniques, Wishwa Prakasan ublishing
Co. Ltd., New Delhi, Sixth edition 2001.

Human Resources Management by P.Subarao

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