COMPANY PROFILE -

PERFORMANCE APPRAISAL

PERFORMANCE APPRAISAL
Once the employee has been selected, trained and motivated, he is then appraised for his performance. Performance appraisal is the step where the management finds out how effective it has been at hiring and placing employees. If any problems are identified, steps are taken to communicate with the employee and to remedy them. Organizations are run and steered by people. It is through people that goals are set and objectives are realized. The performance of an organization is thus dependent upon the sum total of the performance of its members. The performance of an employee is his resultant behaviour on task that can be observed and evaluated. It refers to the contribution made by an individual in the accomplishment of organizational objectives. Performance can be measured by some combination of quantity, quality, time and cost. People do not learn unless they are given feedback on the results of their actions. For learning to take place, feedback must be provided regularly and it should register both successes and failures, and should follow soon after the relevant actions. Performance appraisal system provides management an opportunity to recall as well as feedback to people as to how they are doing, so that they can correct their mistakes and acquire new skills. "Performance appraisal refers to all those procedures that are used to evaluate the personality, the performance and the potential of its group members. Evaluation is different from judgment-the former being concerned with performance, the latter with person. While evaluation deals with the achievement of goals, judgment has an undercurrent of personal attack and is likely to evoke resistance." "Performance appraisal is a process of evaluating an employee's performance of a job in terms of its requirements". According to FLIPPO, "performance appraisal is the systematic, periodic and an impartial rating of an employee's excellence in matters pertaining to his present job and his potential for a better job"

It is the process of obtaining, analyzing, recording information about the relative worth of an employee.
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Performance appraisal has been used basically for three purposes- remedial, maintenance, and development. A performance appraisal needs to cover all these three purposes with the same focus. If any purpose predominates, the system will become out of balance. So, the performance appraisal is a key element in the performance management process. When used effectively, the performance appraisal can provide accurate feedback on past performance, significantly that enhances employee productivity and satisfaction, and offers feedback to employees on how to improve. For that reason, the performance appraisal is one of the most important responsibilities of supervisors or managers. CHARACTERISTICS OF PERFORMANCE APPRAISAL 1. Performance appraisal is a process consisting of a series of steps. 2. It is the systematic examination of an employee's strengths and weaknesses in terms of the job. 3. Performance appraisal is a scientific or objective study. Formal procedures are used in this study. The same approach is adopted for all jobholders so that the results are comparable. 4. It is an ongoing or continuous process wherein the evaluations are arranged periodically according to a definite plan. 5. The main purpose of performance appraisal is to secure information necessary for making objective and correct decision on employees. OBJECTIVES OF PERFORMANCE APPRAISAL 1. To provide feedback to employees so that they come to know where they stand and can improve their job performance 2. To provide a valid database for personnel decisions concerning placements, pay, promotion, transfer, punishment, etc. 3. To diagnose the strengths and weaknesses of individuals so as to identify further training needs. 4. To provide coaching, counseling, career planning, and motivation to subordinates.
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5. To develop positive superior-subordinates relations and thereby reduce grievances. 6. To facilitate research in personnel management. 7. To test the effectiveness of recruitment, selection, placement and induction programmes. PROCESS OF PERFORMANCE APPRAISAL The performance appraisal process follows a set pattern and it consists of the following steps: 1) Establishing performance standards: the appraisal process starts with the setting up of criteria to be used for appraising the performance of employees. The criterion is specified with the help of job analysis, which reveals the contents of a job. This criteria should be clear, objective and in writing. It should be discussed with the supervisors to ensure that all relevant factors have been included. Personal characteristics of an employee can also be included which contribute to the employee performance. In addition, who is to do appraisal and how frequently appraisal is to be done should also be decided. 2) Communicating the standards: the performance standards specified in the first step are communicated and explained to the employees so that they come to know what is expected of them. The standards should be conveyed to the evaluators. The reactions of employees to the standards should be obtained. If necessary, the standards may be revised or modified in the light of feedback obtained from the employees and the evaluators. 3) Measuring performance: once the performance standards are specified and accepted, the next stage is the measurement of actual performance. This requires choosing the right technique of measurement, identifying the internal and external factors influencing performance and collecting information on results achieved. Personal observations, written reports and face-to-face contacts are the means of collecting data on performance. The performance of different employees should be so measured that it is comparable. What is measured is more important than how it is measured. 4) Comparing the actual with the standards : actual performance is compared with the pre determined performance standards. Such comparison will reveal the deviations, which may be positive, or negative. Positive deviations occur when the actual
6

performance exceeds the standards. On the other hand, excess of standard performance over the actual performance represents negative deviation. THE PERFORMANCE APPRAISAL PROCESS

5) Discussing the appraisal: the results of the appraisal are communicated to and discussed with the employees. Along with the deviations the reasons behind them are also analyzed and discussed. Such discussions will enable an employee to know his weaknesses and strengths. Therefore, he will be motivated to improve himself. The impression the subordinate received about his performance has an impact on his subsequent performance. The impact May positive or negative depending how the appraisal feedback is presented and discussed with the employee. 6) Taking corrective action: Through mutual discussion with employees, the steps required to improve performance are identified and initiated. Training, coaching, counseling, etc. are examples of corrective actions that help to improve performance. BENEFITS OF PERFORMANCE APPRAISAL Performance appraisal is a formal exercise carried out for all executives and workers or staff with respect to their contributions made towards the growth of the organization. The aim is to measure the overall performance of an employee over a period of time, usually one year, by his immediate supervisor so as to provide a feedback to the employees and aid the management. Performance appraisal does not
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merely measure the performance of the people but has many other benefits. The benefits of a successful appraisal system can be summed up as follows: (1) For the appraisee Better understanding of his role in the organization- what is expected and what needs to be done to meet those expectations. Clear understanding of his strengths and weaknesses so as to develop himself into a better performer in future. Increased motivation, job satisfaction, and self-esteem Opportunity to discuss work problems and how they can be overcome Opportunity to discuss aspirations and any guidance, support or training needed to fulfill these aspirations. Improved working relationships with the superiors (2) For the management Identification of performers and non-performers and their development towards better performance Opportunity to prepare employees for assuming higher responsibilities. Opportunity to improve communication between employees and management Identification of training and development needs Generation of ideas for improvements Better identification of potential and formulation of career plans (3) For the organization Improved performance throughout the organization Creation of a culture of continuous improvement and success Conveyance of message that people are valued Above given benefits will be realized only if performance appraisal is considered as a process of management. Performance appraisal is a process for establishing sound understanding about what is to be achieved, and an approach to manage and develop

people in a way, which will increase the probability of achieving the goal-be it short term or long term. 360-DEGREE APPRAISAL SYSTEM This is defined as the systematic collection and feedback of performance data on an individual or group, derived from a number of stakeholders in their performance. It is done in a systematic way via questionnaires or interviews. This formalizes people's judgment coming from natural interactions they have with each other. There is both a collection and a feedback process. Data are gathered and feedback to individual participant in a clear way designed to promote understanding, acceptance and ultimately changed behavior. METHODS OF PERFORMANCE APPRAISAL TRADITIONAL METHODS Straight ranking method Man-to-man comparison Grading Graphic rating scale Forced choice description Forced description Check-list Free form essay Critical incident Group appraisal Field review TRADITIONAL METHODS Straight ranking method: it is the most oldest and simplest method of performance appraisal, by which the man and his performance are considered as an entity by the rater. No attempt is made to fractionalize the rate or his performance: the "whole man" is compared with the " whole man"; that is, the ranking of a man in a work
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MODERN METHODS Assessment centre Appraisal by results (MBO) Human asset accounting Behaviorally anchored rating scales (BARS)

group is done against that of another. It is a simplest method of separating the most efficient from least efficient; and relatively easy to develop and use. Paired comparison technique: by this technique, each employee's trait is compared with all the other persons in pairs one at a time. With this technique, judgment is easier and simpler than with ordinary ranking method. The number of times each individual is compared with another is tallied on a piece of paper. These numbers yield the rank order of the entire group. Man-to-man comparison method: In this method, certain selected factors are selected for the purpose of analysis and a scale is designed by the rater for each factor. A scale of man is also created for each selected factor. The each man to be rated is compared with the man in scale, and certain scores for each factor are awarded to him. Personnel are compared to the key man in respect of one factor at time. This method is used in job evaluation, and is known as the factor comparison method. Grading method: rater considers certain features and marks them according to scale. Certain categories of standards are established and carefully defined. The selected features may be analytical ability, co-operativeness, dependability, self-expression, job knowledge, judgment, leadership, and organizing ability, etc. They may e: Aoutstanding, B-very good, C- good or average, D- fair, E-poor. The actual performance of an employee is compared with these grade definitions, and he is allotted the grade which best describes his performance. Graphic or linear rating scale: in this method, a printed form, one for each person to be rated. According to JUCIUS, these factors are: employee characteristics and employee contribution. In employee characteristics are included such qualities as initiative, leadership, co-operativeness, dependability, industry, attitude, enthusiasm, loyalty, creative ability, decisiveness, analytical ability, emotional ability, coordination. In employee contribution are included the quantity and quality of work, the responsibility assumed, specific goals achieved, regularity of attendance, leadership offered, attitude towards superiors and associates, versatility, etc. These traits are then evaluated on a continuous scale. The rating scale method is easy to understand and easy to use and permits statistical tabulation of scores. A ready comparison of scores among the employee is possible. These scores indicate the worth of every individual.

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 Forced choice description method: this method attempts to correct a rater's tendency to give consistently high or consistently low ratings to all employees. The use of this method calls for objective reporting and minimum subjective judgment. Under this method, the rating elements are several sets of phrases or. adjectives relating to job proficiency or personal qualifications. The rater is asked to indicate which of the four phrases is most and least descriptive of the employee. Forced distribution method: this method was evolved by JOSEPH TIFFIN after statistical work. This method is used to eliminate or minimize rater's bias, so that all personnel may not be placed at the higher end or at the lower end of the scale. It requires the rater to appraise an employee according to a pre-determined distribution scale. Under this method, it is promotability and performance. For this purpose, a five-point performance scale is used without any descriptive statement. Employees are placed between the two extremes of good and bad job performance. Checklist: under this method, the rater does not evaluate employee performance; he supplies reports about it and the final rating is done by the personnel department. A series of questions are presented concerning an employee to his behaviour. The rater, then, checks to indicate if the answer to a question about an employee is positive or negative. The value of each question may be weighed equally or certain questions may be weighed more heavily than others. Free essay method: under this method, a supervisor makes a free form, open-ended appraisal of an employee in his own words and puts down his impressions about the employee. The description is always as factual as possible. No attempt is made to evaluate an employee in a quantitative manner. This is a very helpful method and provides a good deal of information, if the supervisor is asked. For instance to give two or three examples of each judgement he makes. Critical incident method: the essence of this method is that it attempts to measure worker's performance in terms of certain 'events' and 'episodes' that occur in the performance of rate's job. Theses events are known as critical incidents. The supervisor keeps a record of the events that can easily be recalled and used in the course of a periodical or formal appraisal. Feedback is provided about the incidents during performance review session. Group appraisal method: under this method, employee is rated by an appraisal group, consisting of their supervisor and three or four other supervisors who have
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some knowledge of their performance. The supervisor explains to the group the nature of his subordinates' duties. The group then discusses the standards of performance for that job, the actual performance of the jobholder, and the causes of their particular level of performance, and offers suggestion for future improvement, if any. Field review method: under this method, a trainer employee from the personnel department interviews line supervisors to evaluate their respective subordinates. The appraiser is fully equipped with definite test questions, usually memorized in advance, which he puts to the supervisor. The supervisor is required to give his opinion about the progress of his subordinates, the level of performance of each subordinate, his weaknesses, good points, outstanding ability, promotability, and possible plan of actions in cases requiring further consideration. MODERN METHODS Assessment centre: The assessment center was initially applied to military situations in 1930s. The purpose of this method was to test candidates in a social situation, using a number of assessors and a variety of procedures. The most important feature of the assessment center is job-related simulations. These simulations involve characteristics that managers feel are important to the job success. These simulations involve characteristics that managers feel are important to job success. The evaluators observe and evaluate participants as they perform activities commonly found in these higherlevel jobs. Under this method, many evaluators join together to judge employee performance in several situations with the use of a variety of criteria. Assessments are made to determine employee potential for the purposes of promotion. Appraisal by results: this method has been evolved by PETER DRUCKER. MBO is potentially a powerful philosophy of managing and an effective way for operationalising the evaluation process. It seeks to minimize external controls and maximize internal motivation through joint goal setting between manager and the subordinate and increasing the subordinate's own control of his work. It strongly reinforces the importance of allowing the subordinate to participate actively in the decisions that affect him directly. Management by objectives can be described as, "a process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individual's major area of responsibility in terms of results expected of him and
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use these measures as guides for operating the unit and assessing the contributions of each of its members. Human asset accounting method: the human asset accounting method refers to activity devoted to attaching money estimates to the value of a firm's internal human organization and its external customer goodwill. If able, well-trained personnel leave a firm, the human organization is worthless; if they join it, human assets are increased. If distrust and conflict prevail, the human enterprise is devalued. If tern work and high morale prevail, the human organization is a very valuable asset. Two types of variables- key casual variables and intervening variables and their measurements must be made over several years to provide the needed data for the computation of the human asset accounting. Behaviorally anchored rating scales (BARS): This is a new appraisal technique, which has recently been developed. The procedure for BARS is usually five stepped: a) Generate critical incidents b) Develop performance dimensions c) Re-allocate incidents d) Scale of incidents e) Develop final instrument ESSENTIALS OF AN EFFECTIVE PERFORMANCE APPRAISAL SYSTEM To be effective, a performance appraisal system should satisfy the following requirements: Mutual trust: an atmosphere of mutual trust and confidence should be created in the organization before introducing the appraisal system. Such an atmosphere is necessary for frank discussion of appraisal. It also helps to obtain the faith of employees in the appraisal system. Clear objectives: the objectives and uses of performance appraisal should be made clear and specific. The objectives should be relevant, timely and open. The appraisal system should be fair so that it is beneficial to both the individual employee and the organization. The system should be adequately and appropriately linked with other sub systems of human resource management. Standardization: well-defined performance factors and criteria should be developed. These factors as well as appraisal forms, procedures and techniques should be
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standardized. It will help to ensure uniformity and comparison of ratings. Employees should be made fully aware of performance standards and should be involved in setting standards. Job relatedness: evaluators should focus attention on job-related behaviour and performance of employees. In order to focus attention on behaviour under the employee's control, raters must become familiar with the observed behaviour. It is also necessary to prepare a checklist so as to obtain and review job performance related information. Ratings should be tied up with actual performance of units under the rater's control. Training: evaluators should be given proper training in philosophy and techniques of appraisal. They should be provided with the knowledge and skills in documenting appraisals, conducting post appraisal interviews, rating errors, etc.

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OBJECTIVES OF THE STUDY

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OBJECTIVES OF THE STUDY

1. To review employee performance and potential 2. To determine the rewards that employees will get for their past work. 3. To know how training needs are identified 4. To know how employees develop themselves by knowing about their strengths and weaknesses.

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RESEARCH METHODOLOGY

17

RESEARCH METHODOLOGY
The current chapter deals with the research methodology adopted in the present study indicates the selection of sample respondents, collection of data, choice of statistical tools for analysis of data, in addition to pointing out limitations of the study. Methodology adopted: The research is aimed at studying the analysis of Performance appraisal at Saluja Textile Mills Milk Company. The city covered under the research was Ludhiana. Research design: The design for this study was descriptive. Since the study was conducted to identify how performance appraisal process is conducted.

ASSUMPTIONS OF THE STUDY

a. It is assumed that the attitude of employees of the Company towards performance appraisal is positive. b. It is assumed that respondents should behave rationally. c. It is assumed that all information provided by the respondents is factual i.e. real and correct to their knowledge.

SAMPLING PLAN
Sampling is an effective step in collection of primary data that influences the quality and correctness of the result. The scope of the present study was limited to one city i.e. Ludhiana city.

SAMPLE SIZE
The sample size was so selected to give the true picture of the problem. 50 middle level staff of Company was randomly selected. The lot Sample size for the Company is 100. Number of employees in Saluja Textile Mills Milk Company Total lot size = 100 = 100

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Sampling techniques: Convenience sampling was used to conduct this study. Under this technique sample of respondents were chosen according to the convenience of the respondents.

SOURCES OF PRIMARY DATA AND SECONDARY DATA

In this study, sample survey was conducted; both primary as well as secondary data were used. The primary data was collected by structured questionnaires. Brief information was collected regarding different attributes to be considered and questionnaire contained both close ended and ranking questions. The secondary data was obtained from magazines, journals, Internet and from various books.

DATA ANALYSIS & INTERPRETATION

After a complete study of questions asked from respondents, calculating the frequency of response, tabulated data and percentage was worked out wherever necessary. The conclusions were drawn on the basis of frequency of response/percentage.

LIMITATIONS OF THE STUDY

Due to time constraint, only one Company are selected for the study. Convenient sampling technique is used to select the data. Due to which chances of biasness are there. Error during calculation and tabulation may arise. Due to personal biasness of the respondent involved in the study, the results thus obtained may not be very much accurate.

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DATA ANALYSIS AND INTERPRETATION

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DATA ANALYSIS AND INTERPRETATION

TABLE 1: - PEFORMANCE EVALUATION Yes No Cant Say Respondents 55 40 5 Percentage 55% 40% 5%

60 50 40 30

) % ( t d n o p s e R

20 10 0 Yes No Can't Say

Interpretation As per the above given chart, 55% of the employees in Saluja Textile Mills are aware about the evaluation of performance in their respective companies. 40% of the employees in Saluja Textile Mills don't know whether performance is evaluated. 5% employees cant about performance evaluation.

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TABLE 1.1 FREQUENCY OF EVALUATION OF PERFORMANCE Respondents 60 30 10 Percentage 60% 30% 10%

Monthly Annually Quarterly

70 60 50 40 30

) % ( t d n o p s e R

20 10 0 Monthly Annually Quarterly

Interpretation As per the above given chart, maximum number of the employees in Saluja Textile Mills say that their performance is evaluated on monthly basis 10% of the employees in Saluja Textile Mills say that their performance is evaluated on quarterly basis.

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TABLE 2 - PERFORMANCE APPRAISAL IS Respondent Transport Annually shown True indicator of an employees performance Helpful in Job assigning s 30 30 26 14% Percentage 30% 30% 26% 14%

35 30 R es pondents(% ) 25 20 15 10 5 0 Transperent Annually shown True indicator of an employee's performance Helpful in job assigning

Interpretation As per the chart given above; 30% of the employees in Saluja Textile Mills say that their performance is "annually shown" and 26% of the employees in Saluja Textile Mills say that performance is the "true indicator of employee's performance".

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TABLE 3: - APPLICATION OF METHODS Respondents 32 39 25 4 Percentage 32% 39% 25% 4%

Critical Methods Simple Ranking Method Man to Man Comparison Check List

45 40 35 30 25 20 15 10 5 0 Critical Methods Sim ple Ranking Method Man -to-Man Com parison Check List

Interpretation As per the above given chart, most of the employees in Saluja Textile Mills say that simple ranking methods are followed. TABLE 4:- EMPHASIS OF PERFORMANCE APPRAISAL

) % ( t d n o p s e R

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Innovativeness Cost Reduction Method Problem solving ability Ability to handle diverse situations

Respondents 55 20 20 5

Percentage 55% 20% 20% 5%

60 50 40 30

) % ( t d n o p s e R

20 10 0 Innovativesness Cost reduction m ethdos Problemsolving Ability to handle diversity

Interpretation As per the chart given above, most of the employees in Saluja Textile Mills say that performances appraisal is done on the basis of innovativeness. Very less number of the employees in Saluja Textile Mills says that performance is evaluated on the basis of ability to handle diverse situations. TABLE 5:- TENDENCY OF SUPERVISORS Rate all the employees low Rate half the employees low and half the employees high
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Respondents 40 30

Percentage 40% 30%

Rate all employees high Rate few employees high

25 5

25% 5%

45 40 35 30 25 20

) % ( t d n o p s e R

15 10 5 0 Rate all the employeeslow Ralf half the em ployeeslow and half the em ployees high Rate all em ployees high Rate few employees high

Interpretation As per the chart given above, most of the employees in Saluja Textile Mills say that tendency of supervisors is to rate all the employees low and 25% of the employees in Saluja Textile Mills say that tendency of supervisors is to rate all employees high.

TABLE 6:- PERFORMANCE MEASURED BY CONSIDERING ONE CHARACTERISTICS Strong agree Agree Neither agree nor disagree Disagree Strongly Disagree Respondents 20 30 8 32 10 Percentage 20% 30% 8% 32% 10%
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35 30 25 20 15 10 5 0 Strongly Agree Agree Neither agree nor disagree Disagree Strongly Disagree

Interpretation As per the chart given above, 32% of the employees in Saluja Textile Mills "Disagree" that their performance is evaluated on the basis of single characteristic.

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TABLE7: - PERFORMANCE REVIEWS SHOULD BE BASED UPON Respondents 20 50 10 20 Percentage 20% 50% 10% 20%

Opinions of managers Employees self appraisal Perception of other employee Actual events and observations

60

50

40

30

) % ( t d n o p s e R
20 10 0 Opinionsof m anagers Employee's self apprisal Perception of other em ployee Actual events and observations

Interpretation As per the chart given above, most of the employees in Saluja Textile Mills say that performance reviews are based upon the employee's self appraisal. 20% of the employees in Saluja Textile Mills say that performance reviews are based upon the opinion of the managers.

Table

8:-

TOP-MOST

FACTOR

THAT

MOTIVATES

EMPLOYEE

PERFORMANCE
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Benefits Compensation Work environment Clear Objectives

50 45 40 35 30 25

Respondents 30 45 15 10

Percentage 30% 45% 15% 10%

) % ( t d n o p s e R

20 15 10 5 0 Benefits Com ponents Work Environment Clear Objectives

Interpretation As per the above given chart, Most of the employees in Saluja Textile Mills say that they consider compensation" as the top most factor that motivate employee performance.

TABLE 9: - RANKING OF BENEFITS TABLE 9.1:- IMPROVES PERFORMANCE

Strongly Agree

Respondents 16

Percentage 16%
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Agree Neither agree nor disagree Disagree Strongly Disagree

14 30 35 15

14% 30% 35% 15%

40 35 30 25 20 15 10 5 0 Strongly Agree Agree Neither agree nor disagree Disagree Strongly Disagree

Interpretation As per the chart given above, most of the employees in Saluja Textile Mills Disagree that performance appraisal helps in improvement of performance.

TABLE 9.2:- IDENTITY TRAINING NEEDS

Strongly Agree Agree Neither Agree nor Disagree Disagree

Respondents 50 10 15 18

Percentage 50% 10% 15% 18%

30

Strongly Disagree

7%

60

50

40

30

20

10

0 Strongly Agree Agree Neither agree nor disagree Disagree Strongly Disagree

Interpretation As per the chart given above, most of the employees in Saluja Textile Mills Strongly agree that performance appraisal helps in Identifying training needs.
TABLE 9.3:- HELPS TO WORK FOR HIGHER GOALS

Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree

Respondents 20 22 33 6 19

Percentage 20% 22% 33% 6% 19%

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35 30 25 20 15 10 5 0 Strongly Agree Agree Neither agree nor disagree Disagree Strongly Disagree

Interpretation As per the chart given above, most of the employees in Saluja Textile Mills Neither agree nor disagree that performance appraisal helps the employees to work for higher level goals. TABLE 9.4:- CALCULATION OF REWARDS Respondents 6 20 10 60 4 Percentage 6% 20% 10% 60% 4%

Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree

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70 60 50 40 30 20 10 0 Strongly Agree Agree Neither agree nor disagree Disagree Strongly Disagree

Interpretation As per the chart given above, most of the employees in Saluja Textile Mills disagree that performance appraisal helps calculating the rewards.
TABLE 9.5:- DETERMINATION OF REWARDS

Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree

Respondents 20 45 20 10 5

Percentage 20% 45% 20% 10% 5%

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50 45 40 35 30 25 20 15 10 5 0 Strongly Agree Agree Neither agree nor disagree Disagree Strongly Disagree

Interpretation As per the chart given above, most of the employees in Saluja Textile Mills agree that performance appraisal helps in the determination the rewards and 20% of the employees in Saluja Textile Mills neither agree nor disagree that performance appraisal helps in the determination of rewards. TABLE 10:- RANKING OF REASONS FOR MANIPULATING EMPLOYEE BEHAVIOR TABLE10.1:- TO BE IN GOOD BOOKS OF EMPLOYER Respondents 20 60 20 Percentage 20% 60% 20%

Satisfied Uncertain Dissatisfied

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70

60

50

40

30

20

10

0 Satisfied Uncertian Dissatisfied

Interpretation As per the chart given above, most of the employees in Saluja Textile Mills uncertain with the reason of manipulate employee beahviour is to be in good books of employees. TABLE10.2:- FEAR FROM CRITICISM Satisfied Uncertain Dissatisfied Respondents 35 24 41 Percentage 35% 24% 41%

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45 40 35 30 25 20 15 10 5 0 Satisfied Uncertian Dissatisfied

Interpretation As per the chart given above, most of the employees in Saluja Textile Mills dissatisfied with the reason of manipulate employee beahviour that is the fear from criticism.

TABLE10.3:- FOR GETTING PROMOTIONS Satisfied Uncertain Dissatisfied Respondents 35 46 19 Percentage 35% 46% 19%

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50

45

40

35

30

25

20

15

10

0 Satisfied Uncertian Dissatisfied

Interpretation As per the chart given above, most of the employees in Saluja Textile Mills uncertain with the reason of manipulate employee beahviour to get promotion. TABLE11:- CAUSES LEAD TO POOR PERFORMANCE Lack of training provided by employer Personal problem of an employee Inadequate skills of an employee All (a), (b) and (c) None of these Respondents 30 20 40 10 0 Percentage 30% 20% 40% 10% 0%

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45 40 35 30 25 20 15 10 5 0 Lack of training Personal problem s Inadequate skills All (a), (b) and (c) None of these

Interpretation As per the chart given above, 40% of the employees in Saluja Textile Mills feel that cause that lead to poor performance is inadequate skills of an employee. TABLE12:- REGULAR FEEDBACK OF WORK ALLOTTED Yes No Always Respondents 45 35 20 Percentage 45% 35% 20%

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50 45 40 35 30 25 20 15 10 5 0 Yes No Always

Interpretation As per the chart given above, most of the employees in Saluja Textile Mills feel that they get regular feedback of the work allotted to them.

TABLE13:- TYPE OF FEEDBACK CONSIDERED EFFECTIVE Descriptive Suggestive Continuous Well timed Respondents 8 40 42 10 Percentage 8% 40% 42% 10%

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45 40 35 30 25 20 15 10 5 0 Descriptive Suggestive Continuous Well - tim ed

Interpretation As per the chart given above, most of the employees in Saluja Textile Mills consider continuous feedback as effective and 40% of the employees in Saluja Textile Mills believe that suggestive feedback is effective.

TABLE14:WEEKNESS

FEEDBACK

HELPS

IN

KNOWING Respondents 20 35 15 20 10

STRENGTHS

AND

Strongly Agree Agree Neither agree nor disagree Disagree Strongly Disagree

Percentage 20% 35% 15% 20% 10%

40

40 35 30 25 20 15 10 5 0 Strongly agree Agree nether agree nor disagree disagree Strongly disagree

Interpretation As per the chart given above, most of the employees in Saluja Textile Mills agree that feedback helps in knowing about strength and weakness of an employee.

TABLE15:- BIASNESS IN EVALUATION OF PERFORMANCE

Strongly Agree Agree Neither agree nor disagree Disagree Strongly Disagree

Respondents 45 15 20 10 10

Percentage 45% 15% 20% 10% 10%

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50 45 40 35 30 25 20 15 10 5 0 Strongly agree Agree nether agree nor disagree disagree Strongly disagree

Interpretation As per the chart given above, most of the employees in Saluja Textile Mills strongly agree that there is any biasness in evaluating the performance of the employees.
TABLE16:- UNSATISFACTORY RATED EMPLOYEE

Transferred Separated Given proper training Demoted Should not be taken care of

Respondents 20 40 25 10 5

Percentage 20% 40%

25% 10%

5%

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45 40 35 30 25 20 15 10 5 0 Transferred Seperated Given proper training Dem eoted Should not be taken care of

Interpretation As per the chart given above, 40% of the employees in Saluja Textile Mills feel that an unsatisfactory employee should be separated and 25% of the employee feel that an unsatisfactory employees should be given proper training.
TABLE17:- HELPFULNESS OF PERFORMANCE APPRAISAL SYSTEM

Yes No Cant Say

Respondents 65 35 0

Percentage 65% 35% 0%

43

70

60

50

40

30

20

10

0 Yes No Can't Say

Interpretation As per the chart given above, maximum numbers of the employees in Saluja Textile Millsfeel that performance appraisal system is very helpful and 35% of the employees in Saluja Textile Millsfeel that performance appraisal is not helpful.
TABLE18:- SPENDING OF TIME IN IDENTIFYING KPAs AND GAINING ROLE CLARITY

Strongly Agree Agree Neither Agree nor Disagree Disagree

Respondents 20 22 30 18

Percentage 20% 22% 30% 18%

44

Strongly Disagree

10

10%

35 30 25 20 15 10 5 0 Strongly Agree Agree Neither agree nor disagree Disagree Strongle disagree

Interpretation As per the chart given above, most of the employees in Saluja Textile Mills neither agree nor disagree that spending of time in identifying key performance areas and gaining role clarity.

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FINDINGS, SUGGESTIONS & CONCLUSION

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FINDINGS
After the interpretation of the data and information obtained from the employees, it is true that performance appraisal process is considered very important. The various findings of the study are as follows: 1. Maximum number of employees in Company agree that performance is evaluated. 5% of the employees in Saluja Textile Mills don't know about the evaluation of the performance. 2. 3. 60% of the employees in Saluja Textile Mills say that performance is evaluated on monthly basis. Almost all the employees in the Company say that results of performance appraisal are annually shown. 30% of the employees in Saluja Textile Millssay that performance appraisal is transparent. 4. 5. In Saluja Textile Mills; most of the employees say that simple ranking method is applicable to evaluate the performance. Most of the employees in the Company say that tendency of the supervisors is always to rate all employees "low" but very less number of employees in the Company say that tendency of the supervisors is to rate all employees "high". 6. 7. 8. 9. Most of the employees in Saluja Textile Mills"disagree" that performance is measured by considering only one characteristic. In the Company, most of the employees say that performance reviews should be based upon employee self-appraisal. In Saluja Textile Mills, most of the employees consider "compensation" as top most factor that motivate employee performance. Most of the employees in the Company "disagree" that performance appraisal improves performance and most of the employees in the Company " strongly agree" that performance appraisal helps in identifying training needs 10. 11. 12. Most of the employees in Saluja Textile Mills "neither agree nor disagree" that performance appraisal helps the employees to work for higher goals. Most of the employees in the Company "dis-satisfied" with the reason of manipulated employee behaviour- fear from criticisms. Most of the employees in the Company say that cause that can lead to poor performance is inadequate skills of an employee.

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13. 14. 15.

Most of the employees in the Company agree that they get regular feedback of the work allotted to them. Most of the employees in the Company say that continuous" type of feedback is effective. Most of the employees in Saluja Textile Mills strongly agree" that there is always biasness in evaluation of performance.

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SUGGESTIONS
Though performance appraisal plays a very important role for both the supervisors and the subordinates still certain recommendations are necessary which are as follows: 1. 2. 3. The supervisors should try to analyze strengths and weaknesses of an employee and advise him on correcting the weaknesses. Results of the appraisal, whether negative or positive should be immediately communicated to the employees so that they may try to improve their performance. Tendency of the supervisors must be to rate the employees by considering their all qualities thoroughly so that he is capable of meeting the challenges about the ratings of his subordinates. 4. Supervisors must not consider single characteristic for the whole appraisal of performance of an employee. The results of the performance rather than personality traits should be given due weight age. 5. 6. 7. Proper training must be provided to the employees so they may get the knowledge about the work they have to perform. Supervisors should not be partial while evaluating the performance. So, it must be the true indicator of employee performance. A performance appraisal must be in a proper format describing each and every single aspect of an employee so as to provide full satisfaction to the employees. If by chance, dis-satisfaction occurs to an employee, then proper training must be provided to him for better performance so as make him satisfied. 8. Superiors must hold a meeting with each and every employee so as to discuss employee's performance and then superiors must give an opportunity to the employees to comment if they feel that appraisal is inaccurate. 9. 10. Performance appraisals must be transparent indicating who, what and when with thorough details because this will be provides immense support the decision. Supervisors must set specific goals to accomplish for employees, they must be measurable and attainable because too many goals may cause confusion and may lead to causes.

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CONCLUSION
At the end we can conclude that performance appraisal system plays a very important role for both supervisors and employees. People are considered as the most important asset for an organization and their good performance of the work allotted to them can lead the organization to achieve maximum benefits and if poorly done can lead to maximum losses. So, performance appraisal system helps the employees to know about their strengths and weaknesses and proper training is provided to correct those weaknesses. Performance appraisal describes each and every single aspect of an employee performance so as to reach at desired results.

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BIBLIOGRAPHY

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BIBLIOGRAPHY
Udai Pareek, t. Venkateswara Rao; Designing and managing human resource systems; Second edition: Oxford and IBH Publishing Co. Pvt. Ltd. Bhaskar Chatterjee; Executive guide to human resource management; Excel Books. N.K. Singh; Human resource management; Excel Books. S.B. Mamoria and S.V. Gankar; Personnel management; Publishing House. Biswajeet Pattanayak; Human resource management; Prentice- Hall of India pvt. Ltd. S.K. Bhatia and Nirmal Singh; Principles and techniques of personnel management/ Human resource management; Deep & Deep publications pvt. Ltd. Daniel D Elash; managing peak performance; HRM Review, sepetember2003; Gunmala suri and Nikhil Vohra; HRM Review, september2003 Andrew Dutta and Manjeesh k Singh, Appraisal tools for today's performance management; HRM Review, September 2003

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ANNEXURE

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QUESTIONNAIRE
(PERFORMANCE APPRAISAL) Name: Age: Gender: Designation: Number of years working in an organization: QUES1: Do you know that your performance is evaluated or not? a) Yes b) No If yes, then how frequently it is evaluated? a) Monthly b) Annually c) Quarterly QUES2: Do you think that performance appraisal in your Company is: a) Transparent b) Annually shown c) A true indicator of an employee's performance d) Helpful in job assigning QUES3: Which methods are applicable in your organization? a) Critical incidents b) Simple ranking method c) Man-to-man comparison d) Check-list QUES4: In your opinion, performance is evaluated on the basis of: a) Innovativeness b) Cost-reduction measures c) Problem-solving ability d) Ability to handle diverse situations

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QUES5: In performance appraisals, there is a tendency of the supervisors to: a) Rate all the employees low b) Rate half the employees low and half the employees high c) Rate all employees high d) Rate few employees high QUES6: Do you agree that performance is sometimes and in some by only one of the characteristics of an employee? a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree e) Strongly disagree QUES7: Performance reviews should be based upon: a) Opinions of managers b) Employee' s self appraisal c) Perception of other employees d) Actual events and observations cases measured

QUES8: Which of the following is the most commonly found at the top of the list of factors that motivate employee performance: a) Benefits b) Compensation c) Work environment d) Clear objectives QUES9: Rank the benefits (1 to 5 according to your preference) you get From performance appraisal system: a) Improves performance b) Identify training needs c) Helps to work for higher level jobs
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d) Calculation of rewards e) Determination of gaps QUES10: Rank the reasons for manipulated employee behaviour at the time of performance appraisal: a) To be in good books of managers b) Fear from criticisms b) For getting promotions QUES11: What are the causes that can lead to poor work performance? a) Lack of training provided by employer b) Personal problems of an employee c) Inadequate skills of an employee d) Both (a), (b) and (c) e) None of these QUES 12: Do you get regular feedback with respect to the performance of the work allotted? a) Yes b) No c) Always QUES 13: What type of feedback is considered effective (according to you? a) Descriptive b) Suggestive c) Continuous d) Well-timed QUES 14: Do you agree that performance appraisal feedback helps in? Knowing About strengths and weaknesses of an employee? a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree
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e) Strongly disagree QUES 15: Is there any biasness in evaluation of performance done by your supervisors? a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree e) Strongly disagree QUES16: An unsatisfactory rated employee should be: a) Transferred b) Separated c) Given proper training d) Demoted e) Should not be taken care of QUES17: Do you feel that performance appraisal system is helpful? a) Yes b) No

QUES18: Do you agree that adequate time is spent in identifying key Performance areas and gaining role clarity in your Company? a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree e) Strongly disagree

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