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DISSERTATION PROJECT REPORT
ON
“A Study on Employees satisfaction on performance appraisal in
Hotel SAMRAT”
A Dissertation...
CERTIFICATE
This is to certify that Miss Pooja Deswal the student of MBA 2nd year of Ansal University,
Gurgaon have comple...
ACKNOWLEDGEMENT
Every study requires a guidance of someone who is working in that field. Firstly I would
like to thank the...
Executive Summary
Efficient manager of human, technical and financial resources is very important for
accomplishment of ob...
INDEX
CHAPTER: 1

Introduction & Rationale for the study………………………………………………….7-10
Introduction……………………………………………………………………………...
Research Design
Sample Design

Sample Size

Sampling Methods
Sample Type

Data Collection Method
CHAPTER: 5
Data Analysis ...
Chapter 1
INTRODUCTION & RATIONALE FOR THE STUDY
Page 7
INTRODUCTION
Many organizations have realized that satisfied, skilled, hard working and especially motivated
employees are...
• Document criteria used to allocate organizational rewards. 

• Form a basis for personnel decisions: salary increases, p...
RATIONALE
People differ in their abilities and their aptitudes. There is always some difference between
the quality and qu...
Introduction to the hotel industry
“Hotel” or Inn is defined by British Law as a place where a bonafide traveler can recei...
Hence it is necessary the responsibilities and obligations of an employee should be appraised
initially and salary should ...
Location : 15 kms from International Airport, 10 kms from Domestic Airport, 9 kms from New
Delhi Railway Station.
Rooms: 2...
HOTEL SAMRAT
Hotel Samrat started in 1982 crafted in Magnificent Dholapur Soft pink stone and plush marble.
Hotel Samrat i...
A few kilometers away from the airport the Samrat Hotel welcomes you to share and discover
the variety of facilities in th...
The following is about the organization:-
OUR MISSION
Guest: - We are committed to meeting & exceeding the expectations of...
☑ 7, Lodhi Road,
☑ New Delhi.
ACCOMMODATION
☑ Total number of rooms : 255
☑ Luxury suites 2
☑ Double rooms {Large Bed} 39
...
SERVICES
Beauty Parlour and Barber Shop, Courier Service, Round the Clock Currency Exchange,
Laundry and Dry Cleaning Serv...
CONVENTION & BANQUET FACILITIES
☑ Kautilya Hall – Designed to accommodate 300 delegates.
☑ Chadragupt and Chanakya.
☑ Spra...
Chapter 2
OBJECTIVE, SCOPE & LIMITATIONS OF THE STUDY
Page 20
OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE
- The Primary Objective of research is to study the existing Performance Apprais...
LIMITATIONS OF THE STUDY
- This is subjected to the basis and prejudices of the respondents, hence 100% of accuracy
cannot...
Chapter 3
THEORTICAL PERSPECTIVE / CONCEPTUAL
FRAMEWORK
Page 23
HUMAN RESOURCE MANAGEMENT
Human resource management has developed during past twenty years and has gained a lot of
attenti...
1.1 Performance Management
Performance management is one of the functions of human resource management. In recent
years, i...
✓The main purpose of performance appraisal is to ensure information necessary for making
objectives and correct decision a...
• To check foreknowledge of the employee
• To identify how to improve relationship between management of the company and
t...
to find out whether their requirements harmonies with the company's vision or they can
discuss his/her remuneration.
PROCE...
1) Labour performance
• Quality and quantity of work during certain time and with certain costs
• Employee's value-added t...
BENEFITS
✓The process provides opportunities for individuals to: -
✓Understand and clarify their job role and responsibili...
(usually the direct supervisor) with improved communication, fair assessment and objective
views of abilities that relate ...
- Complete your appraisal of employee’s performance
- Collect and review the self evaluation
- Conduct the appraisal meeti...
THE EVALUATION PROCESS
1. Establish Performance Standards
At the time of designing a job and formulating a job description...
5. Discuss the Appraisal with the Employee
The results of appraisal are discussed periodically with the employees, where g...
Performance Appraisal
TRADITIONAL METHODS MODERN
1.Unstructured Appraisal 1. Management by
2. Employee Ranking Rating Obje...
There are seven traditional methods of appraisal
1. Unstructured appraisal
Under this, the appraiser is required to write ...
This method obviously eliminates the room for subjective judgment on the part of
supervisors. Besides this, the system is ...
a.Weighted check list
Under this method, various statements are prepared in such a manner that they describe
various types...
The rater may feel that either of the two statements in a pair is applicable, but he must select
the one that is more desc...
observed that most of the time the employees have neither positive nor negative incident. If
the critical event does not h...
MODERN APPRAISAL METHODS
There are two important methods of performance appraisal, which are used by the modern
concern. T...
4. Check- points are established for the evaluation of progress, and the ways of measuring
progress are selected.
5. The s...
it will not be possible for the superior to have discussions with each and every subordinate
for setting up mutually agree...
c. Reclassification of critical behavior
Another group of people who are knowledgeable about the job is instructed to retr...
4. Inflexibility managers are forced to initiate self- change.
5. Facts about organizational culture and ambience are brou...
Performance appraisal in hotel Samrat
These are 3 kinds of Performance Appraisal forms through which the employees are app...
Thus, the Employees Performance Appraisal form of the comments & remarks from:
i) Appraiser (Supervisor)
ii) Appraisee (Em...
Appearance/Grooming
Administrative skills
Quality of responsibility
Leadership qualities etc.
The section of overall perfo...
7. To know the feeling of the employees toward the hotel practices and policies and about the
other staff.
Steps taken by ...
• Organizing ability and execution
2.The employees must have made some positive and tangible contribution to his/her deptt...
A meeting Chaired by General Manager along other HOD’s will then choose the person
for the Annual Best Worker Award.
PRIZE...
Chapter 4
RESEARCH METHODOLOGY
Page 52
RESEARCH METHODOLOGY
The data needed for the study is collected from the employees, through questionnaire. Analysis
and in...
DATA COLLECTION METHODS:
The data collected for the study consists of both primary and secondary data.
Primary Data:
In th...
SAMPLING METHODS:
Survey is done by random sampling method.
QUESTIONNAIRE:
Questionnaire containing closed ended questions...
Chapter 5
DATAANALYSIS AND INTERPRETATIONS
Page 56
DATAANALYSIS AND INTERPRETATION
Analysis is carried out to summarize the data to crystallize the outcome of the survey. In...
Q1. Do You agree with the Existing Performance appraisal ?
INTERPRETATION:
From the Table 1 and Figure 1, we can infer tha...
Q2. Do You Agree that the Performance Appraisal is Important in Organization?
INTERPRETATION:
From the Table 2 and Figure ...
Q3. Do you Agree with the regular discussions with the supervisor about your
performance and development?
INTERPRETATION:
...
Q4. Do You Agree that Standard of Performance well communicate with you?
INTERPRETATION:
From the Table 4 and Figure 4, we...
Q5. Do you Agree With the Regular feedback is provided by Your Organization
on appraisal?
INTERPRETATION:
From the Table 5...
Q6. Do you Agree with the Half yearly period of appraisal in your organization?
INTERPRETATION:
From the Table 6 and Figur...
Q7. Do you agree that your supervisor is effective at communicating important
issues that may affect your job?
INTERPRETAT...
Q8. Do you agree with that the appraisal system help in enhancing the
communication between you and your supervisors ?
INT...
Q9. Do You agree with the reward given by Organization on the bases of
Performance?
INTERPRETATION:
From the Table 9 and F...
Q10. Do you agree with the Training , counseling and coaching provided by the
organization after the appraisal are more ef...
Q11. Do you agree with the appraisal given by the appraise is fair ?
INTERPRETATION:
From the Table 11 and Figure 11, we c...
Q12. Do you agree with the Punishment given by the organization ?
INTERPRETATION:
From the Table 12 and Figure 12, we can ...
Q13. Do you agree that in your organization the appraisal system helps in the
identification of Promotion, salary Incremen...
Q14. Do you agree with the procedure of performance appraisal in your
organization?
INTERPRETATION
From the Table 14 and F...
Chapter 6
FINDINGS , SUGGESTIONS AND CONCLUSIONS
Page 72
FINDINGS
- Majority of the Employees are well aware with the existing Performance Appraisal
System.
- Mostly respondents a...
CONCLUSIONS
From the study it is identified that the most of the employees are satisfied with the Present
Appraisal system...
SUGESSTIONS
In SAMRAT HOTEL the system is effectively carried out and hotel need to make some
important changes in it so a...
Chapter 7
EXPECTED CONTRIBUTION FROM THE STUDY AND
FUTURE SCOPE
Page 76
FUTURE SCOPE
This research study the existing Performance Appraisal practice in HOTEL SAMRAT
The future scope of study it ...
BIBLIOGRAPHY & REFERENCES
Page 78
BIBLIOGRAPHY
BOOKS:-
➢ Personnel Management (Management of HR)
Dr. C.B. Mamoria
➢ Performance Appraisal System
Archer Nort...
QUESTIONNAIRE
AGE ———— GENDER———
DESIGNATION—— EXPERIENCE( in hotel samrat)————
Q1. Do You agree with the Existing Perform...
Q4. Do You Agree that Standard of Performance well communicate with you?
(i) Strongly agree
(ii) Agree
(iii) Neither agree...
(v) Strongly disagree
Q8. Do you agree with that the appraisal system help in enhancing the
communication between you and ...
ii) Agree
iii) Neither agree nor disagree
iv) Disagree
v) Strongly disagree
Q12. Do you agree with the Punishment given by...
Page 84
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Dissertation report on performance appraisal

  1. 1. DISSERTATION PROJECT REPORT ON “A Study on Employees satisfaction on performance appraisal in Hotel SAMRAT” A Dissertation Project report submitted in Partial Fulfillment of award of MBA Degree ! ANSAL SCHOOL OF MANAGEMENT ANSAL UNIVERSITY GURGAON SUBMITTED TO SUBMITTED BY DR. PUJA CHHABRA POOJA DESWAL ( Professor) 160MBAGEN069

  2. 2. CERTIFICATE This is to certify that Miss Pooja Deswal the student of MBA 2nd year of Ansal University, Gurgaon have completed their Dissertation Project “A Study on Employees Satisfaction on Performance appraisal in Hotel SAMRAT” in the year 2016-2018 in partial fulfillment of Ansal University requirements for the award of the degree of Master of Business Administration. Dissertation Project Guide Dr.Puja Chhabra Date: ( Professor) Page 2
  3. 3. ACKNOWLEDGEMENT Every study requires a guidance of someone who is working in that field. Firstly I would like to thank the institution for providing an opportunity of preparing a Project Report and allowing us to use the resources of the institution during this project. I am extremely thankful to my Project Guide, Dr. Puja Chhabra of Ansal University for their precious guidance regarding the preparation of the Project Report. Their guidance has proved to be useful and without them, the preparation of this report might not have been possible. I Am also thankful to the other faculty members of Ansal University for extending their valuable support for this project. I also extend sincere thanks to the Employees of Hotel SAMRAT , who helped me during the course of my project and for their gracious attitude. I would like to take this opportunity to extend our warm thoughts to those who helped me in making this project a wonderful experience. Page 3
  4. 4. Executive Summary Efficient manager of human, technical and financial resources is very important for accomplishment of objectives of any business .Every manager has to perform certain functions to coordinate the efforts of the people working under him for effectiveness and efficient use of physical resource. The quality of performance of these functions determines the success of any organisation to a great extend. This is true both at micro level .With the rapidly changing socio economic environment and growing industry throughout world HR has become a very challenging job .Today’s managers are require possessing certain relation and conceptual skills in addition to wide reservoir of knowledge. Studying the management science and practicing the principle and techniques of management can acquire these skills. My project is an attempt to provide an efficient aid to the development of an understanding of the basic concept that relates to the practices of performance appraisal in various 5 star hotels. And also the employees approach towards the existing performance appraisal system. Page 4
  5. 5. INDEX CHAPTER: 1
 Introduction & Rationale for the study………………………………………………….7-10 Introduction……………………………………………………………………………………..8 Rationale………………………………………………………………………………………10 Introduction to the hotel Industry………………………………………………………11-19 CHAPTER: 2
 Objectives ,Scope & Limitations of the Study………………………………………….20-22 Objectives of the study………………………………………………………………………..21 Scope of study……………………………………………………………………………….21 Limitation of the study………………………………………………………………………..22 CHAPTER: 3 
 Conceptual framework & Theoretical Perspective…………………………………….23-52 Human Resource management………………………………………………………………..24 Performance Appraisal………………………………………………………………………..26 Performance Appraisal in Hotel Samrat………………………………………………………47 CHAPTER: 4 Research Methodology……………………………………………………………..……53-56 Objective Page 5
  6. 6. Research Design Sample Design
 Sample Size
 Sampling Methods Sample Type
 Data Collection Method CHAPTER: 5 Data Analysis & Interpretations………………………………………………………57-82 Data Analysis process………………………………………………………….……………..57 Detail Analysis & Inferences………………………………………………………………58-71 CHAPTER: 6 Finding , Conclusion & Suggestions…………………………………………………….72-75 Findings...............................................................................................73 conclusion.................................................................................................74 Suggestions……………………………………………………………………………………75 CHAPTER: 7
 Future scope of the study………………………………………………………………77-78 Bibliography……………………………………………………………………………… 79-80 Sample Questionnaire…………………………………………………………………….81-85 Page 6
  7. 7. Chapter 1 INTRODUCTION & RATIONALE FOR THE STUDY Page 7
  8. 8. INTRODUCTION Many organizations have realized that satisfied, skilled, hard working and especially motivated employees are very important for the organization not only because of higher performance and productivity. At the present time they may be a source of competitiveness as well. The question arises how to motivate employees, make them happy to work for the organization and let them participate on the organization's success. A performance appraisal, as a part of human resource management, is a good tool how to manage employees when it is set properly and both sides, the organization and employees, understand why the performance appraisal is so important. The performance appraisal helps the organization to observe employees' performance, behavior, skills, need for training or further education, etc. It helps the employees as well because they know where they are, what is expected from them and what they need to do to fulfill organization’s expectations. It motivates them especially when the performance appraisal is related to remuneration. The performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. Performance appraisals are regular reviews of employee performance within organizations. Generally, the aims of a performance appraisal are too: • Give feedback on performance to employees. 
 • Identify employee training needs. 
 Page 8
  9. 9. • 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 It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the management's interest in the progress of the employees. Page 9
  10. 10. RATIONALE People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. Therefore, performance management and performance appraisal is necessary to understand each employee's abilities, competencies and relative merit and worth to the organization. Performance appraisal rates the employees in terms of their performance. Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees. The study on Performance Appraisal of employees was carried out at” Hotel Samrat New Delhi”. The main aim of the study was to study the existing Performance Appraisal practice in Hotel Industry The primary data required for the study were collected through structured questionnaire. The second data was from the company manuals and the website of the company, Online Research papers and projects,The data were analyzed and the findings were arrived at the basis of which suggestions are made. 
 Page 10
  11. 11. Introduction to the hotel industry “Hotel” or Inn is defined by British Law as a place where a bonafide traveler can receive food and shelter, provided he is in a position to pay for it and is in a fit condition to be received”. The Hotel Industry is one important sector of the touristic infrastructure of the country. The composite tourism industry including hotel is a part of expanding International Trade in goods and services within which it represents the fastest growing and largest elements of what economist call invisible trade and its earnings. Today, tourism including hotels is the 2nd largest industry in the world with a rapid growth. The Hotel Industry has changed and developed considerably. The principle factor that determines the guest attitude towards be hotel is service received. Life is Service- is the motto of successful Hotel Men. In Hotel industry the employees are usually taught to - Push Sales - Maintain high standards - Cut Cost - Work well as team member - Have service awareness - Be a representative of his culture/country Undoubtedly, just as an unsatisfied customer is a definite loss in potential revenue, a satisfied customer is definitely a source of excellent publicity for the hotel. Importance of HRM in hotel industry HRM in Hotel Industry is an integral part of it, since it can make or end the enterprise. Much depends on the right personnel with aptitude and interaction for the Hotel Industry. After the right selection of personnel, proper training is most essential as there is no end to man’s ambition for position, power and wealth. Page 11
  12. 12. Hence it is necessary the responsibilities and obligations of an employee should be appraised initially and salary should be fixed accordingly so that an employee does not feel that he is up a blindly with no further prospects of battering his position. An employee should be made to feel that good & honest work yields good result that will invariably be appreciated and recognized. Further, it came to light that these practices could be used to evolve a sound framework for research if they were enhanced in the light of views of people associated with the industry in different capacity. So, it the first stop in the direction could be to get their opinion records in put down their comments in remarks on this subject. Overview of the HOTEL Hotel Samrat A luxury hotel in the heart of New Delhi’s prestigious Diplomatic enclave- yet only 10 Km from Delhi Airport. The Samrat combines the pleasures of a garden resort with the facilities of a 5 Star international hotel. Samrat is an elegant stone and marble structure built around a central flower filled atrium and open air courtyard. ! Hotel Samrat Page 12
  13. 13. Location : 15 kms from International Airport, 10 kms from Domestic Airport, 9 kms from New Delhi Railway Station. Rooms: 255 A/C rooms. Address: Hotel Samrat, Kautilya Marg. INTRODUCTION TO THE ORGANIZATION India Tourism Development Corporation (ITDC) was established in 1966 as an autonomous public sector corporation, entrusted with the task of helping develop tourism infrastructure and promoting India as a tourist destination. Today, ITDC provides a complete package of tourism services including accommodation, catering, travel-related services, event management, publicity, hotel consultancy, duty free shops, in-house travel agency, entertainment and shopping. ! ! Page 13
  14. 14. HOTEL SAMRAT Hotel Samrat started in 1982 crafted in Magnificent Dholapur Soft pink stone and plush marble. Hotel Samrat is planned around a central flower filled atrium and open air courtyard. While sharing the beautifully landscaped garden with the group’s flagship property Ashok Hotel it has to also inherited the royal traditions of hospitality. Its rooms overlook the enclosed terrace garden fountain water channels and swimming pool while satisfying the demands of most discriminating guest. Hotels in New Delhi Hotel Ashok Hotel Indraprastha Hotel Janpath Hotel Kanishka Hotel Ranjit Hotel Samrat ! ! ! 
 ! ! ! Page 14
  15. 15. A few kilometers away from the airport the Samrat Hotel welcomes you to share and discover the variety of facilities in the luxury of the hotel itself. At Hotel Samrat, conventions and conferences are events to remember. Most modern business amenities set amidst perfect conferencing ambience. Culinary tradition cherished by most discovering guests from the world over. And the unmatched reputation for being the finest in conferencing business. A luxury hotel in the heart of New Delhi’s prestigious diplomatic enclave, the Samrat has rooms with elegant décor, 24 hour room service, telephone, TV, video and refrigerator and very soon all the rooms are going to be renovated with all the modern luxuries a hotel can offer. Hotel has two restaurants Red Chilli, the 24 hours Coffee Shop to cater to varied tastes. It serves you snacks, mini-meals both Indian and Continental and drinks of your choice. It is sheer delight to sit and eat in the Red Chilli overlooking the Swimming Pool. Red Chilli is the place when you are in a rush and do not want to be rushed. The other restaurant hotel has is Baradari, the specialty restaurant serving Mughlai and Continental food. Baradari literally meaning courtyard in the place where you can be out of home but still feel homely aromas rising. From the dishes can build up your appetite. Here you would like to eat out of the Chef’s hand for our Masters Chef’s excel in Mughlai Cuisine. Very soon Hotel Samrat is going to open a Veg/Non-Veg. International Multi-Cuisine Restaurant-cum-Bar. Samrat not only provides all the luxuries but also looks after the guest entertainment for which we have Decibel, the Discotheque cum bar which operates four days a week from 8 PM onwards for relaxation, the Samrat tempts you with a cool, blue, open air swimming pool, tennis court, health club, beauty parlour and delightful shopping arcade. Samrat is adept in hosting business meets and get-together as well in Chanakya/Chandragupt and Kautilya Hall to accommodate 200-250 pax with sophisticated audiovisual equipments and conference facilities. Smaller parties and buffets too are handled professionally and impeccably. Page 15
  16. 16. The following is about the organization:- OUR MISSION Guest: - We are committed to meeting & exceeding the expectations of our guest through our unremitting dedication to perfection in every aspect of services. Our Employees: - We are committed to growth, Development and welfare of our people upon whom we rely to make this happen. Our Vision: - To be brand recommended by knowledgeable international b/s market sought after by, service oriented employees and engaged by profit driven, global hotel investors. Location Hotel Samrat, New Delhi Kautilya Marg, Chanakyapuri, New Delhi-110021 15 Kms. From Indira Gandhi International Airport 12 Kms. From Domestic Airport 09 Kms. From New Delhi railway Station 06 Kms. From Shopping Complex and Pragati Maidan, venue of Intl. Exhibition and Fairs. MANPOWER Currently employing 441 employees, which includes:- ☑ 18 Executives ☑ 423 Non Executives BRANCH OFFICE:- India Tourism Development Corporation 6th Floor, Scope Complex, Core 8, Page 16
  17. 17. ☑ 7, Lodhi Road, ☑ New Delhi. ACCOMMODATION ☑ Total number of rooms : 255 ☑ Luxury suites 2 ☑ Double rooms {Large Bed} 39 ☑ Single rooms {Twin Bed} 201 ☑ Apartments 13 Food and Entertainment ☑ Baradari (Indian Cuisine) ☑ Gardenia (24 hrs coffee shop) ☑ Hunt Room, Saloon Bar ☑ Tea Lounge FACILITIES ☑ Swimming Pool ☑ Health Club ☑ Baby-sitter ☑ Travel Desk ☑ Shopping Arcade ☑ 24hours currency exchange ☑ Exclusive exhibition area Page 17
  18. 18. SERVICES Beauty Parlour and Barber Shop, Courier Service, Round the Clock Currency Exchange, Laundry and Dry Cleaning Service, Doctor on Call, Shopping Arcade, safe Deposit, Baby Sitter. In addition, having Special rooms for the Physically Challenged. DINNING & ENTERTAINMENT ▪ Red Chilli 24 Hours Multicuisine Coffee Shop ▪ Baradari Indian and Mughlai Specialty-Amidst timeless Ghazals Timing: 1230 hrs to 1500 hrs & 1930 hrs to 2330 hrs. ▪ Decibel Disco cum Night Club. Timings: 2030 hrs. to 0000 hrs. Page 18
  19. 19. CONVENTION & BANQUET FACILITIES ☑ Kautilya Hall – Designed to accommodate 300 delegates. ☑ Chadragupt and Chanakya. ☑ Sprawling lawns for outdoor parties, theme & gala dinners. ☑ Complete Audio Visual aids, Secretarial Services. Page 19
  20. 20. Chapter 2 OBJECTIVE, SCOPE & LIMITATIONS OF THE STUDY Page 20
  21. 21. OBJECTIVES OF THE STUDY PRIMARY OBJECTIVE - The Primary Objective of research is to study the existing Performance Appraisal practice in HOTEL SAMRAT SECONDARY OBJECTIVES - To understand the procedure of Performance Appraisal practice in Hotel Industry. - To find out that employees are satisfied or not with Performance appraisal. SCOPE OF THE STUDY A HR development is basically depends upon Performance Appraisal and training and development, the present study give us some suggestions for making the present performance appraisal system in hotel Samrat more effective and useful. Page 21
  22. 22. LIMITATIONS OF THE STUDY - This is subjected to the basis and prejudices of the respondents, hence 100% of accuracy cannot be assured. - The research was carried out in a short span of time, where in the research could not widen the study. - The period of study was too short. So it was not possible to collect the relevant information with in that period. - The findings are based on the answers given by the employees, so any error or bias may be affect the validity of the finding Page 22
  23. 23. Chapter 3 THEORTICAL PERSPECTIVE / CONCEPTUAL FRAMEWORK Page 23
  24. 24. HUMAN RESOURCE MANAGEMENT Human resource management has developed during past twenty years and has gained a lot of attention. The interest in human resource management has been caused by development of technology, greater competition and greater importance of productivity. According to Tyson and York inception of people management begun in 18th century at the time of the Industrial Revolution. Personnel management, the most commonly used term for managing people, has been replaced by human resource management during the recent twenty years. Some authors argue that this change has been simple fashionable renaming of personnel management while others contradict it and indicate human resource management as completely new approach. Human resource management is a broad concept with range of definitions. Bratton and Gold define human resource management as "a strategic approach to managing employment relations which emphasizes that leveraging people's capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies, programs and practices." The key human resource activities very often vary in terms of name but the characteristics are similar. These activities are strategic and international human resource management, recruitment and selection, performance management, training and development, reward management, union- management relations and employee relations, and employees' health and safety. At the current situation of worldwide globalization (e.g. enlargement of the European Union) human resource functions must deal with demographic changes (e.g. employees diversity, cultural differences) more than ever before. Improvement in total quality management and business process redesign are important for increasing focus on managing people as the probable source of competitive advantage. Page 24
  25. 25. 1.1 Performance Management Performance management is one of the functions of human resource management. In recent years, it has obtained a lot of attention as a key feature in achieving competitive advantage and high performance. Performance management is concerned in managing the organization and its employees to get better results from them. It helps employees to understand the organization's goals and requirements and how they can partake in achieving objectives and higher performance of the organization. Performance management is often seen as synonymous with performance appraisal but the performance appraisal is only part of the performance management process. 1.2 Performance Appraisal Performance appraisal is defined as 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 the future development. It consists of all procedure used in working organization and potential of employees. Performance appraisal means systematic evaluation of the personality and performance of each employees by his superior or some other persons trained in the technique of merit rating. It employs various ratings technique for comparing individual employees in a work group, in terms of personnel qualities or deficiencies and the requirements of their respective jobs. CHARACTERISTICS ✓ Performance appraisal is a process.
 ✓ It is the systematic examination of the strength and weakness of employees during the term of his job.
 ✓ It is a scientific and objective study. Formal procedure is used in the study. ✓ It is an ongoing and continuous process wherein the evaluations are arranged periodically according to a definite plan. Page 25
  26. 26. ✓The main purpose of performance appraisal is to ensure information necessary for making objectives and correct decision an employee. Objectives of Appraisal ✓The main objective of the appraisal is to evaluate employee's performance fairly. It creates ✓assumptions for employee's utilization within the company and for his/her e.g. motivation, ✓performance or career. Only some of the main objectives are introduced as follow [2]: ✓• To appraise to what extent the employee fulfils his duties ✓• To qualify level of the employee's performance ✓• To appraise if the employee does his/her best at work ✓• To formulate development of the employee ✓• To recommend the employee's transfer to more/less exacting work place Other objectives of the appraisal may differ according to the situation within the company or according to the purpose of appraisal (e.g. periodicity, changes in the company). Among these partial objectives belong • To improve the employee's performance • To gain information about the employee's opinions, values • To identify suitable candidates to be promoted • To identify educational needs Page 26
  27. 27. • To check foreknowledge of the employee • To identify how to improve relationship between management of the company and the other employees • To discuss work issues with the employee • To identify work and social needs of the employee • To check motivation impact of the appraisal and remuneration • To find out level of the employee's satisfaction In practice only some of these objectives are met by the appraisal. It depends on the purpose of the appraisal. The whole appraisal is more about the performance in a case of the appraisal focused on remuneration. The appraisal, focused on character of the employee or his/her behavior, is oriented on management of development and employee's motivation. The appraisal system, which is realized effectively, provides the company with very important feedback about management of the company and the employee's perception of it. Managers are supposed to do the appraisal to find out what provisions are necessary to adopt. They are also supposed to support employee's success or on the other hand to discipline failings and to motivate. Also employees expect benefits from the appraisal. The employee gets feedback about his/her performance which may motivate him/her to do better job. They get an opportunity Page 27
  28. 28. to find out whether their requirements harmonies with the company's vision or they can discuss his/her remuneration. PROCESS The process of performance appraisal: ✓Establishing performance standards ✓Communicating the standards ✓ Measuring performance ✓Comparing the actual with the standards ✓ Discussing the appraisal ✓Talking corrective action What to Appraise? To conduct the appraisal well an appraiser must know which criteria are crucial for the certain employee's position and which are adequate to the form and purpose of the appraisal too. Different criteria may apply to different positions within the company. They can be general (they apply to the all positions) or special (adjusted to the particular position). These criteria should be clear, unambiguous, measurable or comparable (if possible), objective, reliable and giving evidence. For example skills which do not relate to work cannot be taken into consideration during appraisal. The appraisal observes knowledge, skills, competence and behavior of the employee (work-related and social). The appraisal observes Page 28
  29. 29. 1) Labour performance • Quality and quantity of work during certain time and with certain costs • Employee's value-added to the company 2) Labour efficiency (ability to reach a target) • Behaviour • Expertness • Personality • Motivation 3) Work-related and life condition of the employee However, the most common criteria are as follow [3]: • Character and skills needed for work performance • Qualifications and behavior during work • Labour efficiency • Interpersonal relations and style PURPOSES OF PERFORMANCE APPRAISAL The objective of performance appraisal falls into two categories: 1. ADMINISTRATIVE 2. SELF IMPROVEMENT Page 29
  30. 30. BENEFITS ✓The process provides opportunities for individuals to: - ✓Understand and clarify their job role and responsibilities. ✓Know how they contribute towards the achievement of the company’s aim and objectives ✓Discuss the standards of performance expected for their job ✓Get constructive feedback from their line managers, which can enable the employees to bring about changes in their behaviors, attitudes, skills and knowledge and set realistic goals for themselves. ✓Discuss views and ideas on how their job role could be improved. ✓Understand their line manager’s role, responsibilities and priorities. ✓Performance appraisal generates significant, relevant and useful information about the promotability and potential of employees. The information is used to assess the organization’s internal supply of human resources and availability of managerial personnel for succession and planning. ✓Information gathered through performance appraisal provides inputs for making decisions concerning salary administration, financial incentives, appreciations, additional responsibilities, promotion etc. On the basis of this, achievers and poor performers can be given appropriate signals. The Evaluation Process The performance appraisal process is an essential activity designed to foster open communication between supervisor and employee. Performance appraisal should provide both supervisor and employee with clear and obtainable goals, activities and overall performance. The performance evaluation process is an essential activity designed to provide consistent annual reviews for all employees. The process is designed to offer both the employee and the appraiser Page 30
  31. 31. (usually the direct supervisor) with improved communication, fair assessment and objective views of abilities that relate to the job responsibilities. The appraisal process is only one step in the process of continued skill development, career growth and job satisfaction. Effective performance appraisal is a continuous process of change and improvement, not on a single annual event. The focus is on growth and development, not solely on past performance. The performance appraisal must be a collaborative process. As an appraiser, you must conduct the performance appraisal process in a consistent, professional manner. The focus of the process is on the employee’s job performance and requirements of the goals and standards for the next review period. There are three important parts to the appraisal process: - - Employee self-appraisal, where the employee evaluates himself on the grounds of his knowledge to understand the company’s policies and objectives, etc. - Appraiser evaluation is when the appraiser evaluates the employee on certain norms and detects the need for any additional help, etc. - Performance appraisal meeting provides the supervisor and employee with an opportunity to engage in an open and constructive discussion regarding the employee’s job performance, accomplishments, areas of needed improvement, training and development and future performance goals and expectations. None of the above three steps may be eliminated from the process. Both employee and appraiser must use the same appraiser form. As the appraiser, you will need to complete the following steps. The process of completing the appraisal forms may be aided by reviewing the employee’s history including but not limited to job skills, training, experience, past jobs and job performance. The following outline will help you complete the process in an orderly and timely manner. - Describe the process to your staff (either individually or in a group) - Distribute self-evaluation forms. - Set a date and time for the performance appraisal with each staff member. Page 31
  32. 32. - Complete your appraisal of employee’s performance - Collect and review the self evaluation - Conduct the appraisal meeting THE EVALUATION PROCESS Page 32 ESTABLISH PERFORMANCE STANDARDS COMMUNICATE PERFORMANCE EXPECTATIONS TO EMPLOYEES MEASURE ACTUAL PERFORMANCE COMPARE ACTUAL PERFORMANCE WITH STANDARDS DISCUSS THE APPRAISAL WITH THE EMPLOYEE IF NECESSARY, INITIATE CORRECTIVE ACTION
  33. 33. THE EVALUATION PROCESS 1. Establish Performance Standards At the time of designing a job and formulating a job description, performance standards are usually developed for the position. These standards should be clear and not vague, and objective enough to be understood and measured. These standards should be discussed to find out which different factors are to be incorporated, weights and points to be given to each factor and these then should be indicated on the Appraisal Form, and later on used for appraising the performance of the employees. 2. Communicate Performance Expectations to the Employees The next step is to communicate these standards to the employees, for the employees left to themselves, would find it difficult to guess what is expected of them. To make communication effective feedback is necessary from the subordinate to the manager. Satisfactory feedback ensures that the information communicated by the manager has been received and understood in the way it was intended. 3. Measure Actual Performance To determine what actual performance is, it is necessary to acquire information about it. We should be concerned with how we measure and what we measure. Four sources are frequently used to measure actual performance: ☑ Personal observations ☑ Statistical reports ☑ Oral reports ☑ Written reports 4. Compare Actual Performance with Standards The employee is apprised and judged of his potential for growth and advancement. Attempts are made to note deviations between standard performance and actual performance. Page 33
  34. 34. 5. Discuss the Appraisal with the Employee The results of appraisal are discussed periodically with the employees, where good points, weak points and difficulties are indicated and discussed so that performance is improved. 6. If Necessary, Initiate Corrective Actions Coaching, counseling may be done or special assignments and projects may be set; persons may be deputed for formal training courses, and decision making responsibilities and authority may be delegated to the subordinates. Attempts may also be made to recommend for salary increases or promotions, if these decisions become plausible in the light of appraisals. The details given above may vary from organization to organization but these steps usually form the principal steps/features of a sound evaluation programme. METHODS OF PERFORMANCE APPRAISAL There are various methods of merit rating, which may be classified into: • Traditional methods and • Modern methods Page 34
  35. 35. Performance Appraisal TRADITIONAL METHODS MODERN 1.Unstructured Appraisal 1. Management by 2. Employee Ranking Rating Objectives 3. Forced distribution 2. Behavioral Anchored 4. Graphic- rating scales Rating Scales 5. Check- lists 3. 3600 Appraisal 6. Critical incidents 7. Field review TRADITIONAL METHOD Traditional methods are very old technique of performance appraisal. They are based on trait- oriented appraisal. Evaluation of employee is made on this basis of standards of personal traits or qualities such as attitudes, judgment, versatility, initiative, dependability, leadership, loyalty, punctuality, knowledge of the job, etc. Page 35
  36. 36. There are seven traditional methods of appraisal 1. Unstructured appraisal Under this, the appraiser is required to write down his impression about the person being appraised in an unstructured way. However, in some organization, comments are required to be grouped under specific heading such as quality of job performance. Reasons for specific job behaviors, personality traits, and development needs. This system highly subjective and has got its merit in its simplicity and is still in use especially in the small firm. 2. Ranking methods Ranking is a simple process of placing employees in a rank according to their job performance. It permits comparison of all employees in any single rating group, regardless of the type of work. All workers are judged on the same factors and they are rated on the overall basis with reference to their jot, performance instead of individual assessment of traits. Paired comparison is an improvement over simple ranking. Under this, every employee in a job family is compared with every other employee to determine which the better worker is. 3. Forced Distribution Methods The forced distribution system is devised to force the appraiser to fit the employees being appraised into predetermined ranges of scale. It has an advantage over the paired comparison system in that two or more employees can be divided into five point’s scale of outstanding, above average, below average and poor. Page 36
  37. 37. This method obviously eliminates the room for subjective judgment on the part of supervisors. Besides this, the system is easy to understand and administer. The objective of this technique is to spread out ratings in the form of a normal distribution which is open to criticism. Many times, categories are not found in Workgroup, particularly when the size of the group is comparatively smaller. As a matter of fact, forced distribution of rankings is feasible for a large group. 4. Graphic Rating Scale Under this method, scales are established for a number of specific factors and qualities. Five degrees are established for each factor and general definition appears at points along the scale. Generally, the rater is supplied with a printed form, one for each person to be rated. The selection of factors to be measured on the graphical rating scales is an important point under this system. These are two types: I. Characteristics, such as initiatives and dependability. II. Contributions, such as quantity and quality of work. Graphic scales impose a heavy burden upon the supervisor. He must report and evaluate the performance of his subordinates on a scale involving as many as five degrees on perhaps ten different factors, the main drawback of this system that the rater may be biased. However, one means of ensuring that the rater has based his scoring upon substantial evidence is to leave space on the form after each factor and required him to explain the reason for his rating. 5.Checklist It also consists of two techniques: a. Weighted checklist
 b. Forced choice Page 37
  38. 38. a.Weighted check list Under this method, various statements are prepared in such a manner that they describe various types and levels of behavior for a particular job. Each statement is attached with a scale value. At the time of rating the employees, the superior just collects and checks all the statements. After the weight or values are attached to the individual traits, the rating up to this level is gathered on the rating sheet. Then the weights are averaged and employee is evaluated. The weighted checklist should be prepared by the persons thoroughly acquainted with job and perfect in preparing and weighting statements. When this process is over, rating is placed on separated cards. Then these cards are sorted by raters by who actually observed the accomplishment of the work. b.Forced choice This method is used particularly with the objective of avoiding scope for personal prejudices. Under this method, they are forced to choose between descriptive statements of seemingly equal worth describing the person in question. Statements are chosen both the side favorable as well as unfavorable. For example: the following two pairs of statements may be given to the rater and the may be asked to select one statement from each pair that is represented by superiors. ❖ Gives clear instruction to his subordinates. ❖ Can be dependable upon to complete any job assigned. ❖ Makes promises that he knows he cannot keep. ❖ Shows favoritism to some employees. Page 38
  39. 39. The rater may feel that either of the two statements in a pair is applicable, but he must select the one that is more descriptive. Only one of the statements in each pair is correct in identifying the better performance and his scoring key secret from the rafter. In this bias is removed from the appraisal process. Forced choice method is also not free from drawbacks. ❖ It is very expensive to install the system ❖ The procedure involved is very lengthy and hence more time consuming ❖ It is difficult for a superior to discuss rating switch subordinates because the item is scored by the personnel department. 6.Critical incident methods A critical incident means a significant act by an employee exceeding or failing any of the requirements of his job. The method requires every supervisor to record all such significant incidents in each employee's behavior which indicate effective or successful action and those which indicate ineffective or poor behavior. These are recorded in a specially designed notebook which contain categories or characteristics under which various behaviors can be recorded. Under the critical incident methods, the supervisor is supposed to retain from passing overall judgment and concentrate upon discussing facts as he sees them. Theoretically, this should provide a sound and an objective basis for appraisal of the performance of an employee. Strictly speaking, the critical incident methods are not a rating method as it requires the supervisor to pay close attention to what an employee is doing. This method suffers from the defect that outstanding incident happens so frequently that an individual appraisal may not vary markedly between any two time periods. It has been Page 39
  40. 40. observed that most of the time the employees have neither positive nor negative incident. If the critical event does not happen, it will be difficult to rate an employee. 7.Field review method Under this method, the supervisors are interviewed by an expert from the personnel department. The expert questions the supervisor to obtain all the pertinent information on each employee and takes notes in his book. Thus, there is no rating from with factors or a degree, but overall ratings are obtained. The workers are usually classified into three categories as outstanding, satisfactory, and unsatisfactory. CRITICISM OF TRADITIONAL METHOD The general criticism of traditional performance appraisal system is that they are too subjective in nature because all of them are based on personal judgment of the rater. The personal judgment is always subjected to personal bias or prejudice as well as pressure from certain other areas. The appraiser may not be able to judge the competence of the employees because of lack of training. Because of the judgmental role of the superior under the traditional system, performance ratings are frequently subjected to a number of errors and weaknesses which are discussed below. a) Halo error b) Central tendency c) Leniency or strictness d) Recent behavior bias e) Miscellaneous bias Page 40
  41. 41. MODERN APPRAISAL METHODS There are two important methods of performance appraisal, which are used by the modern concern. The first is Management by Objectives (MBO) which represent result oriented appraisal. The second one is Behaviorally- Anchored Rating Scale (BARS) which is based on rating the behavior of the subordinates 1.Management by Objective It was Peter Ducker, who proposed goal setting approach to performance appraisal, which he called 'Management by Objectives and self control'. This approach was further strengthened by Douglas McGregor was concerned with the fact that most traditional appraisal system involved ratings of traits and personal qualities that he felt were highly unreliable. Besides, the use of such trait ratings produced two main difficulties. 1. The management was uncomfortable about using them and resisted making an appraisal. 2. It had a damaging effect on the motivation and development of the subordinates. Goal setting approach or "management objectives" is the same as behavioral approach to subordinate appraisal, actually called work planning and review in case of General Electric Co, U.S.A under this approach, an employee is not appraised by his recognizable traits, but by his performance with respect to the agreed goals or objectives. Thus, the essential feature of this approach is the mutual establishment of job goals. The application of goal setting approach to performance involves the following steps: 1. The subordinates discuss his descriptions with his superior and they agree on the contents of his job and the key result areas. 2. The subordinates prepare a list of reasonable objectives for the coming period of six to twelve months. 3. He sits with his superior to discuss these target and plans, and a final set is worked out. Page 41
  42. 42. 4. Check- points are established for the evaluation of progress, and the ways of measuring progress are selected. 5. The superior and the subordinate's efforts to meet the target mutually established. The goal setting approach is based on clear and time bound objectives from the corporate level to the operate level. This approach can be applied with great success if the performance appraisal program consists of the following elements: 1. Good job description is available to help setting of goals from different positions. 2. Superiors have trust in the subordinates to establish reasonable goals. 3. There is emphasis on solving problems rather than criticism of the performance of the subordinates. The goal setting approach has done away with the judgmental role of the superior in the appraisal of their subordinates. It has led to greater satisfaction, greater agreement, greater comfort and less tension and hostility between the workers and the management. This approach is considerably superior to the traditional approach of performance appraisal, It emphasis training and development of individuals. It is also a problem solving approach rather than tell and sell approach. This approach has also got a built -in device of self - appraisal by the subordinates because they know their goals and the standards by which their performance will be measured. The goal setting approaches suffer from the following limitation: 1. This approach can be applied only when the goal setting is possible by the subordinates. It is doubtful if such a procedure can be applied for the subordinates. 2. This approach is not easy to administer. It involves considerable time, through and contract between the superior and the subordinates. If the span of supervision is quite large, Page 42
  43. 43. it will not be possible for the superior to have discussions with each and every subordinate for setting up mutually agreed goals. 3. This approach mainly emphasis counseling, training and development. It is argued that critical evaluation and modification to improve are incompatible. But in practice, it is not possible to forego the critical aspect of performance appraisal. 2.Behavioral Anchored Rating Scales Behavioral anchor rating scale (BARS) is designed to identify the critical area of performance of a job, and to describe the more effective and less effective job behavior for getting results. Performance is evaluated by asking the rater to record specific, observable job behaviors of an employee and then to compare these observations with a "behaviorally anchored scale" Behaviorally anchored rating scale approach combines elements of the traditional rating scale and critical incident method. Using BARS, job behaviors from critical incident- effective and ineffective behaviors- are described more objectively. This method employs individual who are familiar with a particular job to identify its major components. They are asked to rank and validate specific behaviors for each of the components. The various steps involved in developing BARS are as follows: a. Identification of critical incident of behaviors. People With knowledge of the task of the job to be probed such as holders and supervisors, specific examples of effective and ineffective behavior related to job performance. b. Identification of performance dimensions People are assigned the task of developing the instrument cluster pertaining to the incidents into a small set of key performance dimension. Page 43
  44. 44. c. Reclassification of critical behavior Another group of people who are knowledgeable about the job is instructed to retranslate or reclassify the critical incidents generated under the previous step. d. Assigning a scale value to the critical behavior Each incident is related on a one-to-nine scale with respect to how well it represents performance on the appropriate dimension. e. Development of bar instrument About six or seven incidents for each performance dimension- all having met both the translation and standard deviation criteria — are sued as behavioral anchor. The final BARS instruments consist of a series of vertical scale anchored by the final incident. Each incident is positioned on the scale according to its mean value. 3.360 DEGREE APPRAISALS AND FEEDBACK The 360 degree appraisal involves rating of an employee or manager by everyone above, alongside and below him. Although deployed mostly as a fact- fining technique, 360 degree appraisal is also used to design promotion and reward in the organization. Structured questionnaire is used to collect responses about the employee from his superior’s peers and subordinates. Merits of 360 degree appraisal 1. The 360 degree appraisal leads to greater self- awareness of those appraised. It reveals strength and weaknesses in their working style. 2. The gap between self assessment and the view of one's colleagues or peer group in reduced. 3. If facilitate empowerment of subordinates who get a say in the appraisal of their bosses. Page 44
  45. 45. 4. Inflexibility managers are forced to initiate self- change. 5. Facts about organizational culture and ambience are brought to light by the multiple appraisals. Limitation of 360 degree appraisal 1. The 360 degree appraisal system ignores performance appraisal in terms of goals. 2. The candidate being appraised may not accept negative feedback from the subordinates and peers. He might feel humiliated. 3. Responses from colleague often tend to be biased. 4. Linking rewards to finding less than 360 degree appraisal can prove to be unfair. 5. The subordinates and might not be fully competent in appraisal. Page 45
  46. 46. Performance appraisal in hotel Samrat These are 3 kinds of Performance Appraisal forms through which the employees are appraised. i) Managers Performance Appraisal form. ii) Supervisors Performance Appraisal form iii) Employees Performance Appraisal form. Potential of employee is evaluated after every 6 months. Hotel also has a self appraising system. Rating is divided in 3 categories. i) Employee ii) Supervisory iii) Management The performance of executives and supervisor is appraised both by the appraiser and appraisee. According to the evaluation. Transfers arid Promotions takes place The scale used for all the three categories are. i) Poor ii) Average in iii) Good iv) Excellent In the Employee Performance Appraisal form the appraisers as well as the appraisees comments are taken after the appraiser gives his remarks after this comments of the head of the department is taken along with Personnel Manager’s and General Manager’s comments. Finally, the personnel Action form is filled at along with the final comments of the personnel Manager and the head of the Department Page 46
  47. 47. Thus, the Employees Performance Appraisal form of the comments & remarks from: i) Appraiser (Supervisor) ii) Appraisee (Employee/staff) iii) Head of the Department iv) Personnel Manager v) General Manager In the supervisor’s performance Appraisal form the comments of the appraiser and appraisee are taken after the remarks from the appraisee himself. After this the appraisers along with the head of the department comments are also consider. Then finally, HRD & Personnel/Administration Manager as well as the Senior Vice President and General Manager gives their comments. Finally, the Personnel action form is filled up, along with the final comments of the Personnel Manager and the head of the department. Thus the supervisor’s Performance Appraisal form consists of the comments and remarks from: i) Appraisee (Supervisor) ii) Appraiser iii) Head of the department iv) Personnel Manager v) Senior Vice President & General Manager. Management Performance Appraisal forms consists of 3 sections. Section 1 - General Performance Appraisal. Section 2— Overall Performance Appraisal Section 3 — Individual Training and Development Plan. In section of General Performance Appraisal the comments of the Appraise and Appraiser are taken en several aspects such as Page 47
  48. 48. Appearance/Grooming Administrative skills Quality of responsibility Leadership qualities etc. The section of overall performance appraisal considers all aspects of the appraiser’s performance and achievements which is filled up by the appraiser after considering his as well as appraiser’s comments on the following scale. 1. Excellent Performance 2. Good Performance 3. Average Performance 4. Unsatisfactory Performance In the section of Industrial Training and Development Plan the appraisee himself gives the comments on in which area he needs the training and whether the past has been carried out successfully. Similarly the appraiser gives comments regarding the training need of appraise. Finally, the Vice President and General Manager gives their comments. After taking down all the comments, personal action form is filled up, along with the final comments of the Personal manager and the General Manager. The Objectives of Performance Appraisal in Hotel Samrat Performance Appraisal in Hotel Samrat is done mainly to meet the following objectives: 1. Manpower Planning 2. For creating and maintaining a satisfactory level of performance of employees in the present job. 3. For identifying training and development needs. 4. For promotion 5. For salary increment 6. To motivate the employees Page 48
  49. 49. 7. To know the feeling of the employees toward the hotel practices and policies and about the other staff. Steps taken by the hotel for performance appraisal below standards: 1. Waring letters are given to the employee 2. Termination 3. Increments are held 4. Promotions are held 5. Provide training 6. Counseling is given Awards for good performance in hotel: • Monthly Best worker Award Scheme AIM: To enhance the performance level and motivate positively their workers for achieving higher level of guest satisfaction. SCOPE: This scheme shall cover all confirmed employees of the hotel. FEATURES: 1.All employees are judged objectively by Head of Deptt on the following parameters: • Punctuality • Grooming • Work Output and work knowledge • Adherence to disciplinary norms. • Excellence in guest service • Ability to relate and guide colleagues/subordinates Page 49
  50. 50. • Organizing ability and execution 2.The employees must have made some positive and tangible contribution to his/her deptt. Procedure for selection; All HOD’s will nominate person who they think fit and worthy the award along with a write up on the personality traits of the individual. All nominations should reach the HR deptt. by 28th of each month in the format provided. A meeting chaired by the General Manager along with other HOD’s will them choose the person for the monthly best worker award. PRIZE: 1. Cash reward of Rs.501 2. Certificate of merit by Managing Director/ General Manager Annual Best Worker Award: Features: All the employees will be judged objectively by Deptt. heads on the following parameters: ▪ Same as that of Monthly Best Worker Award ▪ Organizing Ability and execution ▪ High level of initiative in guest services, positive comments by guests. ▪ High degree of self improvement willingness to learn and improve ▪ Potential for further growth ▪ Employee must have made same tangible contribution to his/her deptts. Procedure for selection: The staff selected as Best Employee on monthly basis in one calendar yr ( April- March) will be entitled to be voted by each concerned deptts as employee of the year. All nomination should reach the HR deptt by 15th March in the format provided. Page 50
  51. 51. A meeting Chaired by General Manager along other HOD’s will then choose the person for the Annual Best Worker Award. PRIZE: 1. A Return Air Ticket for two to any destination in India with stay for 2 nights and 3 days. 2. Cash reward of Rs. 2001 3. Certificate of Merit by Managing Director/ General Manager Beach observes “Actual experience with rating has demonstrated that supervisors will rate their people near the middle of the spectrum (average) if their bosses put pressure on them to correct the sub-par performers (or get rid of them) and if they are called upon to really justify an outstanding rating. In other words, they will follow the path of least resistance because they know that the Big Boss will question them about those rated low or very high. Page 51
  52. 52. Chapter 4 RESEARCH METHODOLOGY Page 52
  53. 53. RESEARCH METHODOLOGY The data needed for the study is collected from the employees, through questionnaire. Analysis and interpretation has been done by using the statistical tools and data presented through tables and charts. OBJECTIVE: PRIMARY OBJECTIVE - The Primary Objective of research is to study the existing Performance Appraisal practice in HOTEL SAMRAT SECONDARY OBJECTIVES - To understand the procedure of Performance Appraisal practice in Hotel Industry. - To find out that employees are satisfied or not with Performance appraisal. RESEARCH DESIGN: The study was based on survey method. The aim of the study is to study the existing Performance Appraisal practice in HOTEL SAMRAT Descriptive Research Design: Descriptive research design studies are those studies, which are concerned with describing the character of a group. Page 53
  54. 54. DATA COLLECTION METHODS: The data collected for the study consists of both primary and secondary data. Primary Data: In this study primary data were collected through personnel interview using questionnaire. The questionnaire was administered to forty Eight employees of HOTEL SAMRAT NEW DELHI Secondary Data: Secondary data for this study was collected from. - Previously published records, research reports and documents. - Company websites. SAMPLING DESIGN: A sample design is a definite plan for obtaining a sample from a given population. Convenience sampling method used in selected samples. SAMPLING UNIT: HOTEL SAMRAT, NEW DELHI SAMPLING SIZE:
 The sample size of this study is Forty Eight respondent Page 54
  55. 55. SAMPLING METHODS: Survey is done by random sampling method. QUESTIONNAIRE: Questionnaire containing closed ended questions TOOLS USED FOR ANALYSIS: Percentage Analysis, Likert scale are used as statistical tools for the analysis. GRAPHICAL REPRESENTATION OF DATA: Graphical Representation tool such as Bar Graphs has been used for the data analysis. Page 55
  56. 56. Chapter 5 DATAANALYSIS AND INTERPRETATIONS Page 56
  57. 57. DATAANALYSIS AND INTERPRETATION Analysis is carried out to summarize the data to crystallize the outcome of the survey. In this manner, it enables the researcher to relate critical points with the objectives of the study. Any research is meaningful only if the data obtained is synergized systematically to provide information. The following are the various phases of analysis in which the options of the respondents have been analyzed and interpreted in detail. Each table is calculated from the questionnaire which has segregation of employees it based on satisfaction of employees on whole process The survey is taken from 48 Employees. Page 57
  58. 58. Q1. Do You agree with the Existing Performance appraisal ? INTERPRETATION: From the Table 1 and Figure 1, we can infer that 27% of the respondents are Strongly agree with the existing Performance appraisal.45% are agree and 23% respondents are neither agree nor disagree.only 5% respondents are disagree with the existing appraisal system and 0% respondents are disagree with existing Performance appraisal. Page 58 Table 1: Analysis 1 S.NO. Option Respondents (%age) 1 Strongly agree 27% 2 Agree 45% 3 Neither agree nor disagree 23% 4 Disagree 5% 5 Strongly disagree 0% Total 100% Figure 1: Analysis interpretation 1 0% 12.5% 25% 37.5% 50% Strongly agree Neither agree nor disagree Strongly disagree 0%5% 23% 45% 27%
  59. 59. Q2. Do You Agree that the Performance Appraisal is Important in Organization? INTERPRETATION: From the Table 2 and Figure 2, we can infer that 88% respondents are strongly agree that the Performance appraisal is important in Organization. 6% respondents are agree on this statement .6% respondents are neither agree nor disagree and there is no respondents disagree or strongly disagree on this statements. Page 59 Table 2: Analysis 2 S.NO. Option Respondents (%age) 1 Strongly agree 88% 2 Agree 6% 3 Neither agree nor disagree 6% 4 Disagree 0% 5 Strongly disagree 0% Total 100% Figure 2: Analysis interpretation 2 0% 22.5% 45% 67.5% 90% Strongly agree Neither agree nor disagree Strongly disagree 0%0%6%6% 88%
  60. 60. Q3. Do you Agree with the regular discussions with the supervisor about your performance and development? INTERPRETATION: From the Table 3 and Figure 3, we can infer that 2% Respondents are strongly agree about the discussion with supervisor.11% respondents are agree and 74 % respondents are neither agree or nor disagree with the discussion about development with supervisor.13% respondents are disagree with this statement. Page 60 Table 3: Analysis 3 S.NO. Option Respondents (%age) 1 Strongly agree 2% 2 Agree 11% 3 Neither agree nor disagree 74% 4 Disagree 13% 5 Strongly disagree 0% Total 100% Figure 3: Analysis interpretation 3 0% 20% 40% 60% 80% Strongly agree Neither agree nor disagree Strongly disagree 0% 13% 74% 11% 2%
  61. 61. Q4. Do You Agree that Standard of Performance well communicate with you? INTERPRETATION: From the Table 4 and Figure 4, we can infer that 11% Respondents are strongly agree about the Performance communication with the employees .27% respondents are agree and 49 % respondents are neither agree or nor disagree.10% respondents are disagree about this.and 3% respondents are strongly disagree. Page 61 Table 4: Analysis 4 S.NO. Option Respondent (%age) 1 Strongly agree 11% 2 Agree 27% 3 Neither agree nor disagree 49% 4 Disagree 10% 5 Strongly disagree 3% Total 100% Figure 4: Analysis interpretation 4 0% 12.5% 25% 37.5% 50% Strongly agree Neither agree nor disagree Strongly disagree 3% 10% 49% 27% 11%
  62. 62. Q5. Do you Agree With the Regular feedback is provided by Your Organization on appraisal? INTERPRETATION: From the Table 5 and Figure 5, we can infer that 9% Respondents are strongly agree with the regular feedback provided by organization .29% respondents are agree and 49 % respondents are neither agree or nor disagree.11% respondents are disagree about this.and 2% respondents are strongly disagree about the feedback. Page 62 Table 5: Analysis 5 S.NO. Option Respondents (%age) 1 Strongly agree 9% 2 Agree 29% 3 Neither agree nor disagree 49% 4 Disagree 11% 5 Strongly disagree 2% Total 100% Figure 5: Analysis interpretation 5 0% 12.5% 25% 37.5% 50% Strongly agree Neither agree nor disagree Strongly disagree 2% 11% 49% 29% 9%
  63. 63. Q6. Do you Agree with the Half yearly period of appraisal in your organization? INTERPRETATION: From the Table 6 and Figure 6, we can infer that 3% Respondents are strongly agree with appraisal period .43% respondents are agree and 50% respondents are neither agree or nor disagree. 2% respondents are disagree about half yearly period.and 2% respondents are strongly disagree. Page 63 Table 6: Analysis 6 S.NO. Option Respondents (%age) 1 Strongly agree 3% 2 Agree 43% 3 Neither agree nor disagree 50% 4 Disagree 2% 5 Strongly disagree 2% Total 100% Figure 6: Analysis interpretation 6 0% 12.5% 25% 37.5% 50% Strongly agree Neither agree nor disagree Strongly disagree 2%2% 50% 43% 3%
  64. 64. Q7. Do you agree that your supervisor is effective at communicating important issues that may affect your job? INTERPRETATION: From the Table 7 and Figure 7, we can infer that 35% Respondents are strongly agree that supervisor communication is important for effective job .20% respondents are agree and 30% respondents are neither agree or nor disagree.10% respondents are disagree.and 5% respondents are strongly disagree. Page 64 Table 7: Analysis 7 S.NO. Option Respondents(%age) 1 Strongly agree 35% 2 Agree 20% 3 Neither agree nor disagree 30% 4 Disagree 10% 5 Strongly disagree 5% Total 100% Figure 7: Analysis interpretation 7 0% 10% 20% 30% 40% Strongly agree Neither agree nor disagree Strongly disagree 5% 10% 30% 20% 35%
  65. 65. Q8. Do you agree with that the appraisal system help in enhancing the communication between you and your supervisors ? INTERPRETATION: From the Table 8 and Figure 8, we can infer that 11% Respondents are strongly agree about appraisal system help in enhancing the communication between supervisors and employees.30% respondents are agree with this and 16% respondents are neither agree or nor disagree.35% respondents are disagree.and 5% respondents are strongly disagree on this statement . Page 65 Table 8: Analysis 8 S.NO. Option Respondents (%age) 1 Strongly agree 11% 2 Agree 30% 3 Neither agree nor disagree 16% 4 Disagree 35% 5 Strongly disagree 8% Total 100% Figure 8: Analysis interpretation 8 0% 10% 20% 30% 40% Strongly agree Neither agree nor disagree Strongly disagree 8% 35% 16% 30% 11%
  66. 66. Q9. Do You agree with the reward given by Organization on the bases of Performance? INTERPRETATION: From the Table 9 and Figure 9, we can infer that 17% Respondents are strongly agree about Reward given on bases of performance.59% respondents are agree with this and 5% respondents are neither agree or nor disagree.7% respondents are disagree.and only 2% respondents are strongly disagree on this statement . Page 66 Table 9: Analysis 9 S.NO. Option Respondents (%age) 1 Strongly agree 17% 2 Agree 59% 3 Neither agree nor disagree 5% 4 Disagree 7% 5 Strongly disagree 2% Total 100% Figure 9: Analysis interpretation 9 0% 15% 30% 45% 60% Strongly agree Neither agree nor disagree Strongly disagree 2%7%5% 59% 17%
  67. 67. Q10. Do you agree with the Training , counseling and coaching provided by the organization after the appraisal are more effective? INTERPRETATION: From the Table 10 and Figure 10, we can infer that 59% Respondents are strongly agree on objectives provided to the employees.20% respondents are agree and 21% respondents are neither agree or nor disagree. 0 % respondents are strongly disagree and disagree on providing training and more objectives Page 67 Table 10: Analysis 10 S.NO. Option Respondents (%age) 1 Strongly agree 59% 2 Agree 20% 3 Neither agree nor disagree 21% 4 Disagree 0% 5 Strongly disagree 0% Total 100% Figure 10: Analysis interpretation 10 0% 15% 30% 45% 60% Strongly agree Neither agree nor disagree Strongly disagree 0%0% 21%20% 59%
  68. 68. Q11. Do you agree with the appraisal given by the appraise is fair ? INTERPRETATION: From the Table 11 and Figure 11, we can infer that 0% Respondents are strongly agree on fair appraisals.30% respondents are agree and 35% respondents are neither agree or nor disagree. 25% respondents are strongly disagree and 10% respondents are disagree Page 68 Table 11: Analysis 11 S.NO. Option Respondents (%age) 1 Strongly agree 0% 2 Agree 30% 3 Neither agree nor disagree 35% 4 Disagree 25% 5 Strongly disagree 10% Total 100% Figure 11: Analysis interpretation 11 0% 10% 20% 30% 40% Strongly agree Neither agree nor disagree Strongly disagree 10% 25% 35% 30% 0%
  69. 69. Q12. Do you agree with the Punishment given by the organization ? INTERPRETATION: From the Table 12 and Figure 12, we can infer that 9% Respondents are strongly agree on punishment suggestion .35% respondents are agree and 35% respondents are neither agree or nor disagree. 21% respondents are strongly disagree and 0% respondents are disagree Page 69 Table 12: Analysis 12 S.NO. Option Respondents(%age) 1 Strongly agree 9% 2 Agree 35% 3 Neither agree nor disagree 35% 4 Disagree 21% 5 Strongly disagree 0% Total 100% Figure 12: Analysis interpretation 12 0% 10% 20% 30% 40% Strongly agree Neither agree nor disagree Strongly disagree 0% 21% 35%35% 9%
  70. 70. Q13. Do you agree that in your organization the appraisal system helps in the identification of Promotion, salary Increment and Improvement in work area ? INTERPRETATION: From the Table 13 and Figure 13 we can infer that 0% Respondents are strongly agree on identification of objectives .18% respondents are agree and 52% respondents are neither agree or nor disagree. 30% respondents are strongly disagree and 0% respondents are disagree Page 70 Table 13: Analysis 13 S.NO. Option Respondents (%age) 1 Strongly agree 0% 2 Agree 18% 3 Neither agree nor disagree 52% 4 Disagree 30% 5 Strongly disagree 0% Total 100% Figure 13: Analysis interpretation 13 0% 15% 30% 45% 60% Strongly agree Neither agree nor disagree Strongly disagree 0% 30% 52% 18% 0%
  71. 71. Q14. Do you agree with the procedure of performance appraisal in your organization? INTERPRETATION From the Table 14 and Figure 14 we can infer that 27% Respondents are strongly agree on procedure of performance appraisal .45% respondents are agree and 23% respondents are neither agree or nor disagree. 5% respondents are strongly disagree and 0% respondents are disagree Page 71 Table 14: Analysis 14 S.NO. Option Respondents (%age) 1 Strongly agree 27% 2 Agree 45% 3 Neither agree nor disagree 23% 4 Disagree 5% 5 Strongly disagree 0% Total 100% Figure 14: Analysis interpretation 14 0% 12.5% 25% 37.5% 50% Strongly agree Neither agree nor disagree Strongly disagree 0%5% 23% 45% 27%
  72. 72. Chapter 6 FINDINGS , SUGGESTIONS AND CONCLUSIONS Page 72
  73. 73. FINDINGS - Majority of the Employees are well aware with the existing Performance Appraisal System. - Mostly respondents are strongly agree with the Performance Appraisal is important in organization. - Mostly employees are neither agree or nor disagree about the discussions with the supervisor about performance and development. - Majority of the respondent neutral satisfied with the performance well communicate to them. - Majority of the respondents are neither agree nor disagree with the they didn't get feedback on appraisal. - Majority of the employees agree on that the Performance Appraisal doesn't enhance communication between employees and supervisor. - Performance Appraisal in this hotels is calculated half yearly. - Mostly the employees are satisfied with the existing Appraisal System and there is no such disadvantage in the systems they are following. - Majority of the respondents are satisfied about Training given after the Appraisal measure. - Majority of the respondents are satisfied with the appraisal system. - Majority of respondents says that punishment is a important part of appraisal - After the performance appraisal measure rewards are given by the organization Page 73
  74. 74. CONCLUSIONS From the study it is identified that the most of the employees are satisfied with the Present Appraisal system. Rewards & training are given on the bases of appraisal. employees sees Performance Appraisal as a tool of salary increment and improvement & development in work area. but still 30% respondents found that proper discussion & feedback about the performance appraisal are not given , there is no well communication between employees and supervisors. Overall, employees are satisfied with the Present Appraisal system. Page 74
  75. 75. SUGESSTIONS In SAMRAT HOTEL the system is effectively carried out and hotel need to make some important changes in it so as to carry its appraisal system more beneficially for the organization. some of my suggestions are; - Management should provide proper feedback to the employees. - There should be a proper communication between employees and supervisors. - The company’s rules, policies, regulation especially those regarding performance should be made very clear to all employees. Page 75
  76. 76. Chapter 7 EXPECTED CONTRIBUTION FROM THE STUDY AND FUTURE SCOPE Page 76
  77. 77. FUTURE SCOPE This research study the existing Performance Appraisal practice in HOTEL SAMRAT The future scope of study it will help to give proper feedback and discussion with the employees. and can help to improve communication between employees and supervisors.This is the beneficial for the organization to improve these things. however, this can also form a basis of a secondary study of similar nature conducted on a large ,nationwide scale. Page 77
  78. 78. BIBLIOGRAPHY & REFERENCES Page 78
  79. 79. BIBLIOGRAPHY BOOKS:- ➢ Personnel Management (Management of HR) Dr. C.B. Mamoria ➢ Performance Appraisal System Archer North ➢ Annual Report Hotel Samrat ➢ Human Resource Management N.K. Singh ➢ Human Resource Management Dr. C.B. Gupta WEBSITES:- ➢ www.humanresources.about.com ➢ www.theashokgroup.com ➢ https://www.sumhr.com/top-performance-appraisal-methods-startups-small-businesses/ ➢ https://www.slideshare.net/ParasDhingra/performance-appraisal-in-hotel-industry-raviraj ➢ http://www.theashokgroup.com/index.php?option=com_circulars&view=details&mid=1 ➢ http://www.theashok.com ➢ https://en.wikipedia.org/wiki/Ashok_Group Page 79
  80. 80. QUESTIONNAIRE AGE ———— GENDER——— DESIGNATION—— EXPERIENCE( in hotel samrat)———— Q1. Do You agree with the Existing Performance appraisal ? (i) Strongly agree (ii) Agree (iii) Neither agree nor disagree (iv) Disagree (v) Strongly disagree Q2. Do You Agree that the Performance Appraisal is Important in Organization? (i) Strongly agree (ii) Agree (iii) Neither agree nor disagree (iv) Disagree (v) Strongly disagree Q3. Do you Agree with the regular discussions with the supervisor about your performance and development? (i) Strongly agree (ii) Agree (iii) Neither agree nor disagree (iv) Disagree (v) Strongly disagree Page 80
  81. 81. Q4. Do You Agree that Standard of Performance well communicate with you? (i) Strongly agree (ii) Agree (iii) Neither agree nor disagree (iv) Disagree (v) Strongly disagree Q5. Do you Agree With the Regular feedback is provided by Your Organization on appraisal? (i) Strongly agree (ii) Agree (iii) Neither agree nor disagree (iv) Disagree (v) Strongly disagree Q6. Do you Agree with the Half yearly period of appraisal in your organization? (i) Strongly agree (ii) Agree (iii) Neither agree nor disagree (iv) Disagree (v) Strongly disagree Q7. Do you agree that your supervisor is effective at communicating important issues that may affect your job? (i) Strongly agree (ii) Agree (iii) Neither agree nor disagree (iv) Disagree Page 81
  82. 82. (v) Strongly disagree Q8. Do you agree with that the appraisal system help in enhancing the communication between you and your supervisors ? i) Strongly agree ii) Agree iii) Neither agree nor disagree iv) Disagree v) Strongly disagree Q9. Do You agree with the reward given by Organization on the bases of Performance? i) Strongly agree ii) Agree iii) Neither agree nor disagree iv) Disagree v) Strongly disagree Q10. Do you agree with the Training , counseling and coaching provided by the organization after the appraisal are more effective? i) Strongly agree ii) Agree iii) Neither agree nor disagree iv) Disagree v) Strongly disagree Q11. Do you agree with the appraisal given by the appraise is fair ? i) Strongly agree Page 82
  83. 83. ii) Agree iii) Neither agree nor disagree iv) Disagree v) Strongly disagree Q12. Do you agree with the Punishment given by the organization ? i) Strongly agree ii) Agree iii) Neither agree nor disagree iv) Disagree v) Strongly disagree Q13. Do you agree that in your organization the appraisal system helps in the identification of Promotion, salary Increment and Improvement in work area ? i) Strongly agree ii) Agree iii) Neither agree nor disagree iv) Disagree v) Strongly disagree Q14. Do you agree with the procedure of performance appraisal in your organization? i) Strongly agree ii) Agree iii) Neither agree nor disagree iv) Disagree v) Strongly disagree Page 83
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