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Industry Internship Report


on
Effectiveness of Performance Appraisal
Submitted to

Siva Sivani Institute of Management

In partial fulfillment of the requirement for the award of degree of

Post-Graduation Diploma In Management

By

B. Manisha Reddy
(H11-TPS-01)

CORPORATE GUIDE: FACULTY GUIDE:


Preethi Arora Dr. Chandra Sekhar S.F
(Manager) (Professor, Area Chair HR)
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S.no Title Page. No


Acknowledgment 3
Declaration 4
Executive Summary 5
1 Introduction 6-8
1.1 Importance of performance Appraisal 9-11
1.2 Why Performance Appraisal 11
1.3 Concept of Performance Appraisal 12
1.4 Approaches of Performance Appraisal 12-13
1.5 Problems in Indian Performance Appraisal 15-16
1.6 Need for the Study 16-18
1.7 Objectives of study 19
2 Review of Literature 20-23
3 Design of Study 24
3.1 Research of design 24
3.2 Study Area 24
3.3 Sampling 24
3.4 Methods and tool of Data Collection 25
3.5 Data Processing and Analysis 25
3.6 Statistical test used 26
3.7 Duration the Study 27
3.8 Limitations 27
4 Company Profile 28-33
5 Results and Data Analysis 34-54
5.1 Findings 55-56
5.2 Suggestion and Conclusion 57-58
5.3 Bibilography 59
Appendix: Questionnaire 60-62
Reference 63-64
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Acknowledgment

I would like to thank Siva Sivani Institute of Management for giving me the opportunity to do this
internship. I would like to thank Dr. S.F Chandra sekhar (Professor, Area Chair HR) for Guiding me to
complete my Project. I would like to thank S-Apps Pvt ltd for letting me do the internship at their HR
Division Head office. I’d like to thank Preethi Aurora, my internship supervisor for guiding me with
the completion of this report and keeping me under their supervision and provide me with all the
necessary information which has helped me in the completion of this report. I would also like to thank
all the officials of S-Apps Pvt ltd HR Department for allowing me to be an internee at their
organization and help with necessary information.. I would like to thank S-apps employee who gave
their time to fill my questionnaire.
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EXECUTIVE SUMMARY

Appraisal is a continuous process and done annually as a formal exercise before completion of the
financial year. Appraisal has tremendous motivational impact on people through meaningful feedback
and is a powerful tool for recognition. This project explains performance appraisal system and tries to
find out how efficiently Performance Appraisal is conducted. And if performance appraisal doesn’t
meet its objective then, what are the factors causing failure.
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DECLARATION

I hereby declare that this project titled “Effectiveness of Performance Appraisal”, is my


original work carried out under the guidance of Dr Chandra shekar S.F, Professor, Area
Chair HR, for the Partial Fulfillment of the requirements for the award of the Post
Graduate Diploma in Management.

B. Manisha Reddy
Final year PGDM
Reg-No: H11-Tps-01
Dr. Chandra sekhar S.F
(Professor, Area Chair HR)
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CHAPTER-1
INTRODUCTION
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1.1 Introduction:
Performance appraisal is a method of evaluating the behaviour of employees in the work spot,
normally including both quantitative and qualitative aspects of job performance. It is a systematic and
objective way of evaluating both work-related behaviour and potential of employees. It is a process
that involves determining and communicating to an employee how the job is done and ideally
establishing a plant of improvement. The success of a company requires that both boss and subordinate
staff regularly evaluate their on-the-job performance. If they don’t know how well they are doing, then
the manager would have missed a key step in developing an environment that will consistently
produce cost-effective, high-quality, schedule-beating output. A manager should also make sure that
he/she conducts at least an annual performance appraisal with each subordinate. The probability that
one will earn consistent promotions, obtain salary increases and lead a successful organization goes up
every time you conduct a thorough performance-boosting employee evaluation. Unfortunately,
performance appraisals are all too often not done or are conducted without specific references to
extraordinary achievements or are held in a setting where constructive results are unattainable. They
are rushed and fail to set a positive tone of supervisory interest and concern for subordinate needs. If
an evaluation is held it is because it is required by someone higher up the organization. As a result, all
parties get it over with as quickly as possible to relieve the pressure of being involved in an unpleasant
event. Yet, performance appraisals are necessary. Often a subordinate’s first performance appraisal
may occur at the end of a probationary period, anywhere from 30 to 90 days after their start date. It
may be informal or formal, documented or undocumented, scheduled or unscheduled. The point is this
review, as well as those to follow, have the potential to be the most meaningful opportunities you will
have to provide information subordinates can use to improve their performance. Performance appraisal
should be a positive experience and contribute to the overall welfare of the organization. If done
properly, performance appraisal is a very effective tool to improve performance, productivity and for
developing employees. It helps individuals to do better, raises self-esteem and motivation. Above all it
strengthens the management / subordinate relationship and fosters commitment. Performance
evaluation is not a process to be avoided; rather it should be implemented in all organizations and
promoted as a key management activity. The benefits to be realized from a proper evaluation system
far outweigh the time and effort required to develop, implement and maintain the process. There is
much research to show that individuals have a strong need to know how they are doing and where they
stand in the eyes if their managers. Recognizing the importance of performance feedback, it follows
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that discussions of performance should take place more than once a year. Frequent, regular discussions
of performance should occur on an on-going basis and be seen as an opportunity for useful
communication between the individual who assigns work and those performing it. These regular
meetings serve to provide feedback so good performance is recognized and performance problems are
nipped in the bud. The more formal periodic reviews the better, since there will be a summary of what
has occurred throughout the reporting period recorded on the official performance evaluation form.
Performance appraisal should be viewed as a beneficial process within the context of an effective
system of personnel management. It should be accepted as a normal management responsibility to
review the performance of all employees and for all managers to discuss performance with their
subordinates on a regular basis for the better of the organization.

Definition

Performance appraisal is “the process of evaluating the performance and qualification of the
employees in terms of the administration including for promotion, providing financial rewards and
other placement, selection actions which require differential treatment among the members of a group
as distinguished from actions affecting all members equally.” ___ Heigel (1973)

1.1.3 Definition
Performance appraisal is the systematic evaluation of individual with respect to his/her performance on
the job and his/her potential for development. ____ Dale S. Beach (1991)

Performance appraisal is the systematic description of employee’s job relevant strength and weakness.
The purpose is to find out how well the employee is performing his job and establish a plan of
improvement. Performance appraisal is arranged periodically according to a definite plan. Performance
appraisal is not job evaluation. Performance appraisal refers to how well someone is doing the
assigned job. Job evaluation determines how much a job is worth to the organization and, therefore,
what range of pay should be assigned to the job. ___ Wayne Cascio. (1994)

Once the employee has been selected, trained and motivated, he is then appraised for his performance.
Performance appraisal is essential in escapable managerial activity for enhancing organizational
performance. It administrative and training and development decisions and motivating employees.
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A performance of a job in terms of its requirements “observes, it is the process of evaluating the
performance of qualification of the employees in terms of the requirements of the job to which he is
employed for the purpose of administration including placement, selection for promotions, providing
finance rewards and other actions which require differential treatment among the members of a group
as distinguished from action affecting all members equally.
Performance Appraisal Initially the appraisal system was started for the purpose of making
administrative decisions relating to promotions transfers and salary increments, however over the years
the performance appraisal system are being upon to serve a variety of purpose. They are
1. Administrative purpose
2. Motivational purpose
3. Development purpose
4. Performance improvement

1.1.2 Importance of Performance Appraisal:


Performance appraisal is an essential and inescapable managerial activity. Appraisal is necessary for
all important decisions relating to people, such as placement and promotion, remuneration and reward,
training and development, as well as long-term man power planning and organization development. In
recent years, efforts have been made to use appraisal systems for motivation, for more effective
communication, for strengthening superior-subordinate relationships, for goal setting and work
planning and for improving the total performance of the organization. But in spite of its importance,
uneasiness about appraisal has been a long-standing feature of management. There is no doubt during
the past three decades, many developments have taken place and many innovations, have been made in
managerial appraisal system. Still, many issues remain unresolved. Available literature on the subject
reveals than even in the western countries, where systematic appraisals have been widely practice over
a much longer period than in India and where a fair amount of empirical as well as theoretical research
on the relevant issues has been conducted, serious doubts continue to persist about various aspects of
appraisal. In this present situation performance appraisal become important aspect for the growth and
development of the organization. As IT industries are recruiting their employees day to day and
providing the best remunerations and facilities. ____ Fadil Osmani (2012)
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A performance appraisal or performance evaluation is a systematic and periodic process


that assesses an individual employee’s job performance and productivity in relation to certain per-
established criteria and organizational objectives. Other aspects of individual employees are
considered as well, such as organizational citizenship behavior, accomplishments, potential for future
improvement, strengths and weaknesses, etc. To collect performance appraisal data, there are three
main methods: objective production, personnel, and judgmental evaluation. Judgmental evaluations are
the most commonly used with a large variety of evaluation methods. A performance appraisal is
typically conducted annually. The interview could function as “providing feedback to employees,
counseling and developing employees, and conveying and discussing compensation, job status, or
disciplinary decisions” __ Edwin B Flippo (1976).
Performance appraisal is often included in performance management systems. Performance
management systems are employed “to manage and align" all of an organization's resources in order to
achieve highest possible performance. “How performance is managed in an organization determines to
a large extent the success or failure of the organization. Therefore, improving performance appraisal
for everyone should be among the highest priorities of contemporary” organizations. ___ Muczyk &
Gable, (1987).
Some applications of performance appraisal are performance improvement, promotions, termination,
test validation, and more. While there are many potential benefits of performance appraisal, there are
also some potential drawbacks.
For example, performance appraisal can help facilitate management-employee communication;
however, performance appraisal may result in legal issues if not executed appropriately as many
employees tend to be unsatisfied with the performance appraisal process. Performance appraisal is
created in and determined as useful in the United States are not necessarily able to be transferable
cross-culturally.
Objectives of Performance Assessment

After the selection and hiring of personnel in the organization, employees must then be evaluated and
motivated. Just when they feel valued and motivated, the employees can work effectively and will not
be inclined to leave the organization.

The objectives of the assessment performance are:

1. To review the performance of employees for a period of time;


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2. To assess the gap between the current and desired performance;

3. To assist the manager in conducting the control/audit;

4. To help in improving relationships and communication between managers and employees;

5. To establish the strengths and weaknesses of employees, in order to identify training needs and
future development;

6. To provide the feedback from employees regarding their performance;

7. To ensure the clarity of expectations and responsibilities of the functions to be performed by


employees;

8. To evaluate the effectiveness of other functions of the organization's human resources such as
recruitment, selection, training and development;

9. To reduce employee grievances.

10. In order for the performance appraisal process to be effective and successful, organizations face
different problems and challenges. The main challenges involved in the evaluation of
performance are:

11. Defining the evaluation criteria Identification of assessment criteria is one of the biggest
problems facing the executive manager. In order to access the evaluation, selected criteria
should be measurable.

12. Creation of assessment instruments The aim of the assessment performance process is to
evaluate the performance of employees more than that of employers. The focus should be on
developing the organization's employees.

13. Lack of competence Executive Manager must carefully choose the evaluators. They should
have the necessary knowledge to determine the evaluation criteria carefully. They should have
experience and training needed to implement objectively the process of evaluation.

14. Errors in the assessment Many errors based on personal bias of evaluators, and the influence of
others can drag the evaluation process. Therefore, the evaluator must make an objective
assessment (not subjective), impartial and fair of the employees performance.
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15. Resistance The assessment process can be faced to resistance from employees and trade unions,
for fear of negative assessment. Therefore, communication with employees is needed in order
to make clear to them the purpose and process of performance assessment. Also, the standards
must be clear and known by staff, so that every employee should be aware of what is expected
of him /her.

How is Performance managed?


Good performance by the employees creates a culture of excellence, which
benefits the organization in the long run. The activity includes evaluation of jobs and people both,
managing gender bias, career planning, and devising methods of employee satisfaction etc. The efforts
are to make to generate the individual’s aspirations with the objectives of the organization.
Organization has to clear the way of career advancements for talented and hardworking people. Fear of
any kind from the minds of the employees should be removed so that they give best to their
organization. Allow free flow of information. Communication network should be designed in such a
way no one should be allowed to become a hurdle. This enables the managers to take correct decisions
and that too quickly.__Hoppock (1935)

Why Performance Appraisal?


Today’s working climate demands a great deal of commitment and effort from
employees, who in turn naturally expect a great deal more from their employers. Performance
appraisal is designed to maximize effectiveness by bringing participation to more individual level in
that it provides a forum for consultation about standards of work, potential, aspirations and concerns. It
is an opportunity for employees to have significantly greater influence upon the quality of their
working lives. In these times of emphasis on “quality”, there is a natural equation: better quality goods
and services from employees who enjoy better quality “goods and services” from their employers.
Performance appraisal must be seen as an intrinsic part of a manager’s responsibility and not an
unwelcome and time-consuming addition to them. It is about improving performance and ultimate
effectiveness. Performance appraisal is a systematic means of ensuring that managers and their staff
meet regularly to discuss post and present performance issues and to agree what future is appropriate
on both sides. This meeting should be based on clear and mutual understanding of the job in question
and the standards and outcomes, which are a part of it. In normal circumstances, employees should be
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appraised by their immediate managers on one to one basis. Often the distinction between performance
and appraising is not made. Assessment concerns itself only with the past and the present. The staff is
being appraised when they are encouraged to look ahead to improve effectiveness, utilize strengths,
redress weaknesses and examine how potentials and aspirations should match up. It should also be
understood that pushing a previously prepared report across and desk cursorily inviting comments, and
expecting it to be neatly signed by the employee is not appraisal - this is merely a form filling exercise
which achieves little in terms of giving staff any positive guidance and motivation. __ Bagul(1930)

Methods of Performance Appraisal


There are various methods of appraisal available for organizations today. They are traditional and
modern methods. Some of them are presented in the following sections.
Traditional Methods
1. Essay Appraisal Method
This traditional form of appraisal, also known as "Free Form method" involves
a description of the performance of an employee by his superior. The description is an evaluation of
the performance of any individual based on the facts and often includes examples and evidences to
support the information. A major drawback of the method is the inseparability of the bias of the
evaluator.

2. Straight Ranking Method


This is one of the oldest and simplest techniques of performance appraisal. In
this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall
performance. It is quite useful for a comparative evaluation.
3. Paried Comparision
A better technique of comparison than the straight ranking method, this method
compares each employee with all others in the group, one at a time. After all the comparisons on the
basis of the overall comparisons, the employees are given the final rankings.
4. Critical Incidents Method
In this method of Performance appraisal, the evaluator rates the employee on the
basis of critical events and how the employee behaved during those incidents. It includes both negative
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and positive points. The drawback of this method is that the supervisor has to note down the critical
incidents and the employee behavior as and when they occur.
5. Field Review
In this method, a senior member of the HR department or a training officer
discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major
drawback of this method is that it is a very time consuming method. But this method helps to reduce
the superiors’ personal bias.
6. Checklist Method
The rater is given a checklist of the descriptions of the behavior of the employees
on job. The checklist contains a list of statements on the basis of which the rater describes the on the
job performance of the employees.
7. Graphic Rating Scale
In this method, an employee’s quality and quantity of work is assessed in a graphic
scale indicating different degrees of a particular trait. The factors taken into consideration include both
the personal characteristics and characteristics related to the on the job performance of the employees.
For example a trait like Job Knowledge may be judged on the range of average, above average,
outstanding or unsatisfactory.
8. Forced Distribution
To eliminate the element of bias from the rater’s ratings, the evaluator is asked
to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The
rater chooses the appropriate fit for the categories on his own discretion.

Modern Methods
MBO (Management by Objectives)
The concept of ‘Management by Objectives’ (MBO) was first given by Peter
Drucker in 1954. It can be defined as a process whereby the employees and the superiors come
together to identify common goals, the employees set their goals to be achieved, the standards to be
taken as the criteria for measurement of their performance and contribution and deciding the course of
action to be followed. The essence of MBO is participative goal setting, choosing course of actions and
decision making. An important part of the MBO is the measurement and the comparison of the
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employee’s actual performance with the standards set. Ideally, when employees themselves have been
involved with the goal setting and the choosing the course of action to be followed by them, they are
more likely to fulfill their responsibilities.
360 degree performance appraisal
360 degree feedback, also known as 'multi-rater feedback', is the most
comprehensive appraisal where the feedback about the employees’ performance comes from all the
sources that come in contact with the employee on his job.
360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates,
team members, customers, suppliers/ vendors -
Anyone who comes into contact with the employee and can provide valuable insights and information
or feedback regarding the "on-the-job" performance of the employee.
360 degree appraisal has four integral components:
1. Self-appraisal
2. Superior’s appraisal
3. Subordinate’s appraisal
4. Peer appraisal.
Assessment Centers
An assessment center typically involves the use of methods like social/informal
events, tests and exercises, assignments being given to a group of employees to assess their
competencies to take higher responsibilities in the future. Generally, employees are given an
assignment similar to the job they would be expected to perform if promoted. The trained evaluators
observe and evaluate employees as they perform the assigned jobs and are evaluated on job related
characteristics.
The major competencies that are judged in assessment centers are interpersonal skills, intellectual
capability, planning and organizing capabilities, motivation, career orientation etc. assessment centers
are also an effective way to determine the training and development needs of the targeted employees.
Behaviorally Anchored rating Scales
Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which
combines the graphic rating scale and critical incidents method. It consists of predetermined critical
areas of job performance or sets of behavioral statements describing important job performance
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qualities as good or bad (for eg. the qualities like inter personal relationships, adaptability and
reliability, job knowledge etc). These statements are developed from critical incidents.
In this method, an employee’s actual job behavior is judged against the desired
behavior by recording and comparing the behavior with BARS. Developing and practicing BARS
requires expert knowledge.

BENEFITS OF PERFORMANCE APPRAISAL


Benefit for the individual one as follows
1. Gaining a better understanding of their role
2. Understanding more clearly how and where they fit in within the wider picture
3. A better understanding of how performance is assessed and monitored• Getting an insight
4. Improving understanding of their strengths and weaknesses and developmental needs
5. Identifying ways in which they can improve performance
6. Providing an opportunity to discuss and clarify developmental and training needs•
Understanding and agreeing their objectives for the next year
7. An opportunity to discuss career direction and prospects.
Benefit to the line/manager/supervisor/team leader:
1. Opportunities to hear and exchange views and opinions away from the normal pressure of work
to identify any potential difficulties or weaknesses
2. An improved understanding of the resources available to plan for and set objectives for the next
period to think about and clarity their own role to plan for achieving improved performance to
plan for further delegation and coaching to motivate members of the team
Benefits to the Organization:
3. A structured means of identifying and assessing potential
4. Up-to-date information regarding the expectations and aspirations of employees
5. Information on which to base decisions about promotions and motivation
6. An opportunity to review succession planning Information about training needs which can act
as basis of developing training plans
7. Updating of employee records (achievements, new competencies, etc)
8. Career counseling
9. Communication of information
Performance Appraisal for Employees At Different Levels
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1. For top level management


2. Degree of organizational growth and expansion
3. Extent of achievement of organizational goal
4. Contribution towards the society
5. Profitability and return on capital employed
For middle level managers:
1. Performance of the departments or teams
2. Co-ordination with other departments
3. Optimal use of resources
4. Costs Vs. revenues for a given period of time
5. The communication with superiors and subordinate

Benefits
1. Organization’s Benefits Improved organizational performance, employee retention and
loyalty, improved productivity, overcoming the barriers to communication, clear accountability,
and cost advantages.
2. Manager’s Benefits
Saves time and reduces conflicts, ensures efficiency and consistency in performance.
3. Employee’s Benefits
Clarifies expectations of the employees, self assessment opportunities clarifies the job
accountability and contributes to improved performance, clearly defines career paths and
promotes job satisfaction.
I. Every employee’s individual performance influences how all the team or even the firm
(especially if it is small) is doing.
II. It clarifies the employee’s role and status in the organization. Some workers like to know
where they stand regarding their job performance and want to see what else (useful) they can
do for the company.
III. Self-development is the most important benefit for the employee. Performance appraisal allows
you to provide positive feedback as well as identifying areas for improvement. An employee
can discuss and even create a developmental (training) plan with the manager so he can
improve his skills.
IV. It motivates employees if supported by a good merit-based compensation system. Best
performers get better pay and benefits packages. Similarly, those employees that lag behind get
penalized.
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V. It provides a structured process for an employee to approach the management for discussions,
identify problems, clarify expectations and plan for the future. It lets both manager and
employee set up long- and short-term goals.
VI. The statistics can be used to monitor the success of the organization’s recruitment and
induction practices.
VII. Performance appraisal system also helps the management in deciding about the
promotions, transfers and rewards of the employee.
VIII. It is easy to identify the under-performers and decide whether you want to keep them
hoping for improvement or sometimes have to let them go.
IX. Both manager and employee, keep performance appraisal records and can retrospectively
review the changes in the performance in future.
Need for the Study
A very good system of performance appraisal system is needed by an organization that wants to be
dynamic and growth oriented. It is to be remember that the employee needs to be satisfied and there
should be no difference between the review and appraised employee. It plays a major role in the
process of communication between the superior and the subordinate. A good appraisal system is the
best requirement to bring up the organization and its productivity. S-APPS Pvt Limited is having a
very good system of performance appraisal system because it has laid its own philosophy and well
planned procedure in rating the employees which is very important for the development of both
individual and organization. Management is also providing all the requirements of the employees for
the completion of the work and even the system constitute goal setting, periodic reviews, feedback and
consequence management, and finally rating is given as per this reviews. The employee assessment
has been done by the system of appraisal by the superior and have the final authority for the rating.
Here the employees are given chance for their individual development. The action is taken according
to the ratings of appraised employee
1. Creating and maintaining the satisfactory level of performance of employees in their present
job.
2. Provide feedback information about the level of achievement and behavior of subordinate.
3. Provide information which helps to counsel subordinate.
To be fully satisfied and competent employees need to feel that they’re valued and are producing good
work. The formal appraisal is a great opportunity to give your employees sincere feedback, spurring
them on to work smarter and better. Employees really value frequent praise and recognition, so letting
them know you are aware of the good work that they’re doing will help you to retain hard-working
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staff. Your team will also value your expert advice on their personal brand, and what key areas they
should be focusing on strengthening.
Scope Of The Study
The study covers employees of S-Apps Pvt Ltd. A survey was conducted for information about the
performance appraisal system that was used in the company. The study focuses on type, effectiveness
and employee attitude of the appraisal system. To help management plan future development and
growth. The sample size of 50 employees was selected at random from all departments.

Objectives
To Examine Employee attitude towards the present appraisal system.
1. To assess the effectiveness of performance appraisal system for employees.
2. Identifying performance appraisal leading to the discovery of unfound talents amongst the
employees.
3. To provide suggestions and recommendations to improve the performance appraisal
effectiveness.
Source of the Data
The sources for collecting the data are from both
1. Primary Method
2. Secondary Method Primary Data
The tools for collecting this primary data are by two types namely Interview Method and
Questionnaire Method. Secondary Data The Secondary data are those which have already been
collected by someone else and which have already been passed through the statistical process in the
company.
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Chapter 2 : Review of Literature


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Review of Literature
INTRODUCTION Once a topic has been decided, it is essential to review all relevant materials
which have a bearing on the topic. In fact, review of literature begins with a search for suitable topic
and continues throughout the duration of the research work. Since a research report, either a
dissertation or a thesis, is supposed to be an in-depth study of and contribution to existing knowledge,
a careful check should be made that the proposed study has not previously been carried out. The study
of performance appraisal Evaluation has attracted many of the researchers and practitioners. There has
been continuous research in the field of IT industries and its method, Systematic appraisal evaluation
and their benefits in the industry.

Cummings (1973) in an article titled, “A Field Experimental Study of the Effects of Two Performance
Appraisal Systems”, reported the results of a field experiment designed to test the effects of
manipulating several elements of an operative level performance appraisal system. First, the multi
purposive nature of appraisal in formal organizations is discussed. This is followed by a brief overview
of the literature on performance appraisal. The design and results of the study at hand are then
discussed.

Patton (1973) in his paper on “Does performance appraisal work?” states that performance appraisal
can be a powerful force for performance improvement at both the individual and the corporate level,
but few companies in the US and even fewer in Europe have learned to tap its full potential.
Examining the differences between European and US performance appraisal practices, the author finds
that some European companies have more than caught up with their American counterparts. He offers
guidelines to overcome some difficulties prevalent on both sides of the Atlantic.

Randell (1973) in his paper titled “Performance appraisal: purposes, practices and conflicts”,
discusses the collection of information from and about people at work. It attempts to structure the
field, define key problems, expose sources of conflict and point the way to resolving major difficulties.

Taylor and Wilsted (1974) in their article titled “Capturing Judgment Policies: A Field Study of
Performance Appraisal” used mathematical models of judgment policy for evaluating 625 performance
reports during a single rating cycle. Linear and nonlinear analyses are used to describe the cues most
important in determining the overall ratings. In addition, performance rating policy is compared with
stated policy for each of the 40 raters.
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Bedeian (1976) in his paper titled “Rater Characteristics Affecting the Validity of Performance
Appraisals” states that the task of developing effective performance appraisal systems is one of the
most preferred contemporary problems of personnel administration. An abundance of literature is
available detailing the problems and difficulties inherent in subordinate appraisals. Numerous studies
have made suggestions for rating format and content changes. Some have even suggested the
elimination of appraisal. More recently, an identifiable body of knowledge which seriously casts doubt
on the use of supervisor’s judgment in evaluating employee performance has begun to emerge. The
purpose of this paper is to explore this emerging body of knowledge and to examine its ramifications
for performance appraisal.

Allinson (1977) in his paper describes a study of the effects of a training course on performance
appraisal interviewing. Managers who had attended the course were asked, by means of a postal
questionnaire, to compare their pre-training and post-training interviewing performances. There were
three important findings. First, that the trainees had improved on almost every aspect of appraisal
interviewing; secondly, it is not just the skill of interviewing which is important, but also an
understanding of the role of performance appraisal; and finally, managers in mid-career may have the
most to gain from training of this type.

Decotiis and Petit (1978) in their article titled, “The Performance Appraisal Process: A Model and
Some Testable Propositions”, present a literature-based model of the determinants of the accuracy of
performance ratings. The model indicates that the major determinants of accuracy are: (a) rater
motivation; (b) rater ability; and (c) availability of appropriate judgmental norms. Several propositions
and suggestions for further research are derived from the components of the model.

Wilsted and Taylor (1978) in their article titled, “Identifying Criteria for Performance Appraisal
Decisions” states that appraising employee performance has long been regarded as an important part of
the management function, for purposes of salary administration and recognizing future management
potential. More recently performance appraisal has been recognized for its value as one of the several
tools available to organizations for employee motivation. Central to such programmes as 'Management
by Objectives,' for example, is the motivational value of participatively developed goals, clearly
communicated and supported with a clear and accurate perception by the subordinates regarding the
criteria to be applied in appraising his/her performance against those goals. Indeed, what is perceived
by individuals is often more important than 'reality' in influencing behaviour. Selective filtration by
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superiors and subordinates depends on the trust established, and serves to set expectations for
performance in the work environment. Individuals function on the basis of perceptions. Accurate
perceptions of the performance appraisal criteria by those being evaluated is essential to the
motivational objectives of appraisal. Yet, even in the most formal rating programmes, the rate's
perception of appraisal criteria often varies widely from that actually employed.

The system followed in a S-Apps with a sample size of 45 Employees. The study has found that the S-
apps had adopted a good appraisal system(Ranking Method) and takes the appraisal at the time of
probation period and further during the career promotion. The study has also found that there is a gap
between the actual and desired performance. Hence, it was suggested to conduct annual performance
appraisal to improve the efficiency of the employees and provide training on dependability,
communication skill and skill development to improve the employee s management quality.

Conclusion

In the fast varying scenario of the Indian IT industry, Systematic performance appraisal has become an
essential requirement of every organization to properly evaluate the performance of it employees. In a
lot of organizations, rarely is an effort made to discuss with its work force as to whether expected
results, as predetermined, were met, exceeded or not. Today‟s employees want to know not only how
they fit in with the targets of the organization for which they work but also what aspects of self-
improvement is needed in their performance. Organizations supported through genuine performance
appraisal. The existing relationship between performance appraisal and employee performance in
service and manufacturing sectors, which was the objective of this study, was met and the variance
have been projected. Performance appraisal has an important role to play on employee performance.
But there are other factors also. Conducting periodical review of workforce performance by
organizations has become a fundamental requirement which will help to shrink the gap between
employee performance and successful attainment of its objectives.
24

Chapter 3 Design of the Study


25

Research Design:
To conduct a research scientific method must be followed. The study at S-Apps Ltd; is basically very
large in which it is difficult to collect information from all the employees. Therefore, the sampling
method has been followed for this study. The analysis is based on primary and secondary data
collected for this purpose.

SAMPLING:
Systematic random sampling technique was utilized for the selection of participants of the study. There
are approximately 50employees in total, However, only 45participants could be contacted and
responses elicited during the work time.

Sources of data: The data collected for the project work are from two sources that is primary and
secondary sources.

Primary Data:

Questionnaire

The term Questionnaire usually refers to a self administered process whereby the respondent himself
read the question and records without the assistance of an Interviewer

Part A: Identify how Performance Appraisal system is held in the organization and there are 7
Questions

Part B: Development of Employees Performance were Calculated in S-apps Pvt Ltd. In Part B, there
are 13 Questions.

Secondary Data
 Company Website
Duration of the Study
This study was done during the month of July-August(2018). Later, data processing and analysis were
done during first week of August. During last week, a completed first draft was ready. In all, the
project was completed in two months.

Limitation of the study


26

A few limitations and constraints came in way of conducting the present study, under which the
researcher had to work are as follows:

1. The Company’s policy of not disclosing some data and information for obvious reasons, which
would have been very much useful for the report. Few employees sometime felt disturbed, as
they were busy with their job. It is difficult to make information based a rich report in a short
time of period. The sample size was restricted to 50 employees. The answers given by the
respondents highly depend on the mood and interest and thus the accuracy fluctuates
sometimes.

2. Although all attempts were made to make this an objective study, biases on the part of
respondents might have resulted in some subjectivity.

3. Each respondent may have different interpretations of the questions.


4. Questionnaire cannot fully capture emotional responses.
5. Some people rejected to answer the questionnaire.
27

Chapter 4: Company Profile


28

Company:
S-Apps Technologies are one of the India's leading digital marketing, website design and web
development company. Company provide time bound, cost effective and value added services for
technology innovative business solutions that require specialized domain expertise.
Company provide time bound, cost effective and value added services for technology.
Commitment and a dedicated team to help our clients achieve their business objectives.
IT based business process solutions, next-gen mobility solutions and Product engineering.
S-apps Provide innovative business solutions that require specialized domain expertise.
Android app development, from getting started to optimizing app performance S-apps makes reliable
deliverables.
Vision
The Company aims to become the service provider of choice for clients in the domain of banking,
insurance and other financial services, offering them professional and comprehensive risk management
solutions. We seek to capitalize on opportunities and translate our potential for growth into tangible
business results, while promoting the individual growth of our team members.
Mission
With mission to develop the clients performance in their business, our company is sincerely working
harder for showing profit oriented results to their clients all over the World. We provides a consultative
session to help the client in articulating the right web based solution to solve their business challenge.

Services
Digital Marketing
Digital Marketing refers to the marketing through which we can market our product using the digital
media like social networks, email and so on. This is more flexible for executives and the most liked
one by customers because the executives can market a thing using internet and a well computer
knowledge person. The customers can buy a product by simply clicking using their computers or smart
phones.

Hadoop
Hadoop is absolutely critical to the operations of Yahoo, executives with the company said this week at
the Hadoop Summit. While the company, which spun out Horton works, is moving away from
“traditional” Hadoop components like Map Reduce in favor of YARN, Tez, and Hive, the Hadoop
29

platform remains absolutely core to its operations. There’s a stream of thought in the wider big data
community that Hadoop is old hat.

Data Warehousing
S-Apps Technologies offers a comprehensive suite of data warehousing services that help enterprises
mitigate the challenges of disparate data, unstructured data formats, and data quality issues. While
providing clients the ability to overcome challenges involved in information management, company
help clients unearth hidden values in information assets to facilitate informed decision making. Our
DW/BI practice focuses on to reducing overall risk on the project while increasing the probability of
meeting the actual needs of end users.

Web Development
S-Apps Technologies specializes in creating websites, which are customized and fully enriched for
ultimate digital experience. Company create highly user friendly static and dynamic websites without
compromising the overall look and feel of the website. Our team of developers are experts in art of
creating websites with the best of platforms & absolute value of your money. We have fresh, creative
and innovative ideation, designs and technical expertise in developing website.

Company Clients:
Calallen ISD
Standard chartered
Click & Pledge
Kant plastology

Industries
1. Pharmaceutical:
A pharmaceutical company, or drug company, is a commercial business licensed to research, develop,
market and distribute drugs, most commonly in the context of healthcare. They can deal in generic and
bradn medications. They are subject to a variety of laws and regulations regrading the patenting,
testing and marketing of drugs, particularly prescription drugs. The pharmaceutical industry is now
one of the most profitable and influential in existence, attracting praise and controversy. Drug
discovery is the process by which drugs are discovered and designed.

The S-Apps Technologies Advantage


30

S-Apps Technologies provides world-class solutions across the pharmaceutical value chain. They have
expertise across all functional areas of the pharmaceutical life cycle — discovery, clinical
development, medical affairs, product launch, commercial analytic s (sales and marketing) and
business strategy. Our Center of Excellence model enables clients to have a dedicated team for deeper
cross-channel insights and intelligence.

Product Engineering
Product engineering is the process of ideating, designing and developing a product with the intent to
sell or generate revenue. The role demands combining technical acumen without of the thinking to
implement innovative solutions.
S-Apps Technologies building blocks, in the form of solution accelerators and reusable components
help bridge technology gaps and bring products to market faster. Our expertise in various technologies
like Microsoft, Java, mobile and open source helps us deliver robust and commercially successful
products to the market. S-Apps Technologies Product Engineering Services group brings vast
experience in providing R&D, engineering services and product life cycle support in focused industry
domains.

Manufacturing
S-Apps Technologies is precisely that kind of company. That is why world class cable manufacturers
turn to S-Apps Technologies solutions to help them achieve their desired goals. Design cable faster,
more effectively, with less waste Streamline your manufacturing process from quotation through to
production Produce high quality 3D data-sheets that can be presented to your clients Respond to client
needs quickly and professionally Administration Engineering & Technology.

IT Training -Center for Global Knowledge


S-Apps Technologies training program aims at correcting the shortcomings of IT aspirants
by providing instructor-led training, hands-on training, certification achievement, resume writing, and
interviewing preparation. With our personality development programs, we ensure that the candidates
are well prepared for employment prospects. Besides, our internship prospects offer deserving
candidates real world work experience. Thus with our vast experience in coaching, training, and
development, we guarantee a positive change in your career. development needs. As an experienced
31

company in this field, we are proud to inform our customers that we have one of the most sophisticated
and cutting edge UI design and development infrastructures in the country.
32
33

Chapter 5: Results and Data Analysis


34

Results and Discussions


In this chapter an attempt has been made to present the results of the study in two parts. Part A identify
how Performance Appraisal system is held in the organization, Part B, Development of Employees
Performance were Caluculated in S-apps Pvt Ltd.

Part A
In Part A, We will know how the Performance Appraisal system is held in the S-apps Pvt Ltd,
The following Questions are included in part A
Achieve High Performance from Managers
To know whether Performance Appraisal system was designed to achieve sustainable level of
higher performance from managers

Table 4.1 : Achieve High Performance from Managers


Achieve High Performance from Managers
S.no Opinion Frequency Percent Valid Percent

1 NO 2 4.4 4.4

2 Yes 43 95.6 95.6

Total 45 100.0 100.0


35

From the above table, a large no.of employee think that the Performance Appraisal System was
designed to achieve sustainable levels of higher performance from mangers. Remaining employees
said No to the statement.

Capacity And Potential

To Know whether Performance appraisal systems promote development of managers to their


full capacity and potential
Table 4.2 : Capacity And Potential
Capacity And Potential
S.no Opinion Frequency Percent Valid Percent

1 NO 10 22.2 22.2

2 Yes 35 77.8 77.8

Total 45 100.0 100.0

From the above table, a majority(77.8 percent) feel that Performance Appraisal System promtes
development of mangers to their full capacity and potential. Where as remaining of them said that it
does not promote.
36

Top Management and subordinate Managers.


To Know Performance Appraisal system helps in open relation between top management and
subordinate managers

Table 4.3 : Top Management and subordinate Managers.


Top Management and subordinate Managers.
S.no Opinion Frequency Percent Valid Percent

1 NO 5 11.1 11.1

2 Yes 40 88.9 88.9

Total 45 100.0 100.0

From the above table, it is seen that a large majority(88.9 percent) said Yes that performance appraisal
system creates open relations between top management and subordinate managers. The remaining
employees disagree with the statement.
37

Job Satisfaction
To know whether Performance Appraisal System helps employees in job satisfaction
Table 4.4 : Job Satisfaction

Job Satisfaction
S.no Opinion
Frequency Percent Valid Percent

1 NO 10 22.2 22.2

2 Yes 35 77.8 77.8

Total 45 100.0 100.0

From the above table, it is seen that, a large majority(78.8 percent) of the employees feel that,
Performance appraisal system enables managers to develop their abilities and increase job Satisfaction.
The remaining of them (22.8 percent) said no to the statement.

Improvement in Performance
To know whether Performance Appraisal System helps employees in Improvement in
performance.
38

Table 4.5 : Improvement in Performance

Improvement in Performance
S.no Opinion
Frequency Percent Valid Percent

1 NO 5 11.1 11.1

2 Yes 40 88.9 88.9

Total 45 100.0 100.0

From the above table we can see , Majority of employees (88.9 percent) feel that performance
appraisal system aims at achieving sustainable improvement in the performance of managers. The
remaining few of them said No to the statement.
39

Concern about work


To know whether Performance Appraisal Systems helps employees concern about work
Table 4.6 : Concern about work
Concern about work
S.no Opinion
Frequency Percent Valid Percent

1 NO 5 11.1 11.1

2 Yes 40 88.9 88.9

Total 45 100.0 100.0

From the above table we can say that, majority of employees(77.8 percent) feel that Performance
appraisal system provides an opportunity for individual managers to express their aspirations/ concerns
about the work. Remaining of them(23.2 percent) said No to the statement.
40

Financial and Non-Financial terms


To Know whether performance Appraisal System helps employees by rewarding through
financial and Non- financial terms
Table 4.7 : Financial and Non-Financial terms

Financial and Non-Financial terms


S.no Opinion Frequency Percent Valid Percent

1 NO 5 11.1 11.1

2 Yes 40 88.9 88.9

Total 45 100.0 100.0

From the above table we can say that, majority of employees(82.2 percent) feel that Performance
appraisal system provides basis for rewarding mangers in relation to their contribution by financial/
non-financial terms. Remaining of them (17.8 percent) said No to the statement.
41

Part B : Outcomes of Performance Appraisal


Part B, In this we will know How the Performance and skills developed and how Top
Management Motivates and Reward the employees in the S-apps Pvt Ltd.
Performance and Development
To Know whether performance Appraisal System helps employees in Performance and
development
Table 4.8 : Performance and Development

Opinion Performance and Development


S.no Frequency Percent Valid Percent

1 NO 5 11.1 11.1

2 Yes 40 88.9 88.9

Total 45 100.0 100.0

From the above table we can say that, majority of employees(73.3 percent) feel that Performance
appraisal system enables executives to manage their own Performance and development. Remaining of
them(26.7 percent) said no to the statement.
42

Top Management behind scheme


To know whether Top management is not fully behind the scheme.

Table 4.9 : Top Management behind scheme

Top Management behind scheme


S.no Opinion
Frequency Percent Valid Percent

1 NO 5 11.1 11.1

2 Yes 40 88.9 88.9

Total 45 100.0 100.0

From the above table we can say that, majority of employees(75.6 percent) feel that in Performance
appraisal system Top Management is not Fully behind the scheme. Remaining of them (24.4 percent)
said no to the statement.
43

Detrimental or Beneficial Effect


To Know whether, Managers feel that the scheme is having a detrimental rather than a beneficial
effect.

Table 4.10: Detrimental or Beneficial Effect


Detrimental or Beneficial Effect
S.no Opinion Frequency Percent Valid Percent

1 NO 5 11.1 11.1

2 Yes 40 88.9 88.9

Total 45 100.0 100.0

From the above table we can say that, majority of employees(77.8 percent) feel that In Performance
appraisal system managers having deterimental rather than a beneficial effect. Remaining of
them(22.2) said no to the statement.
44

Opens door to Superior Performance


To Know whether Performance Appraisal System gives me the right goal and motive to achieve it
and opens door superior performance.
Table 4.11 : Opens door to Superior Performance
Opens door to Superior Performance.
S.no Opinion Frequency Percent Valid Percent

1 NO 5 11.1 11.1

2 Yes 40 88.9 88.9

Total 45 100.0 100.0

From the above table we can say that, majority of employees(86.6 percent) feel that Performance
appraisal system gives them the right goal and motivate to achieve it and opens door to superior
performance. Remaining of them(13.4 percent) said no to the statement.
45

Full Potential to their own benefit and Organization


To know whether Performance Appraisal System enables managers to achieve full potential to their
own benefit and that of organization as a whole.
Table 4.12 : Full Potential to their own benefit and Organization

Full Potential to their own benefit and Organization


S.no Opinion Frequency Percent Valid Percent

1 NO 5 11.1 11.1

2 Yes 40 88.9 88.9

Total 45 100.0 100.0

From the above table, we can say that, majority of employees(80 percent) feel that Performance
appraisal system enables mangers to achieve full potential to their own benefit and that of organization
as a whole. Remaining of them (20 percent) said no to the statement.
46

Motivation and Morale


To know whether, Performance Appraisal system improves employees motivation and morale.
Table 4.13 : Motivation and Morale

Opinion Motivation and Morale


S.no Frequency Percent Valid Percent

1 NO 5 11.1 11.1

2 Yes 40 88.9 88.9

Total 45 100.0 100.0

From the above table we can say that, majority of employees(91.1 percent) feel that Performance
appraisal system Improves my motivation and morale. Remaining of them(8.9 percent) said no to the
statement.
47

New way to Perform Job more efficient


To know whether Performance Appraisal System encourages me to think of new ways of performing
my job more efficient.
Table 4.14:New way to Perform Job more efficient
Opinion New way to Perform Job more efficient
S.no Frequency Percent Valid Percent

1 NO 5 11.1 11.1

2 Yes 40 88.9 88.9

Total 45 100.0 100.0

From the above table we can say that, majority of employees (84.4 percent) feel that Performance
appraisal system encourages me to think of new ways of performing my job more efficient. Remaining
of them(15.6 percent) said no to the Statement.
48

Expectation in Future
To Know whether Performance Appraisal System Gives each appraisee an idea of what is expected of
him next year
Table 4.15 : Expectation in Future
Opinion Expectation in Future
S.no Frequency Percent Valid Percent

1 NO 5 11.1 11.1

2 Yes 40 88.9 88.9

Total 45 100.0 100.0

From the above table we can say that, majority of employees(86.7 percent) feel that Performance
appraisal system gives each appraise an idea of what is expected of him/her in the next year.
Remaining of them(13.3 percent)said no to the statement.
49

Communication of Company’s goals


To Know whether Performance Appraisal System allows for the communication of company's goals to
the work force.
Table 4.16 : Communication of Company’s goals
Opinion Communication of Company’s goals
S.no Frequency Percent Valid Percent

1 NO 5 11.1 11.1

2 Yes 40 88.9 88.9

Total 45 100.0 100.0

From the above table, we can say that, majority of employees(87.2 percent) feel that Performance
appraisal system allows for the communication of company’s goals to the work force. Remaining of
them (12.8 percent) said no to the statement.
50

Future Career
To know whether Performance Appraisal System is an Opportunity for future career.
Table 4.17 : Future Career
Opinion Future Career
S.no Frequency Percent Valid Percent

1 NO 5 11.1 11.1

2 Yes 40 88.9 88.9

Total 45 100.0 100.0

From the above table, we can say that, majority of employees(82.2 percent) feel that Performance
appraisal system is an opportunity to talk freely to their superiors about their further career. Remaining
of them(17.8 percent) said no to the statement.
51

Satisfaction
To Know, How satisfied the employees of S-Apps with Performance Appraisal System
Table 4.18 Satisfaction
Opinion Satisfaction
S.no Frequency Percent Valid Percent

1 NO 5 11.1 11.1

2 Yes 40 88.9 88.9

Total 45 100.0 100.0

From the above table we can say that, majority of employees(73.3 percent) feel that, they are fully
Satisfied with Performance appraisal system. Remaining of them(26.7 percent) said no to the
statement.
52

Opinion on PAS
To know what is the Employee’s Opinion on Performance Appraisal System in S-apps Pvt Ltd, the 45
responses are compressed into 22.

Table 4.19 : Opinion on PAS

Opinion Opinion on PAS


S.no Frequency Percent Valid Percent

1 A tool which 13 28.9 28.9


every
organization
should do

2 bad 1 2.2 2.2

3 Best way to 3 6.6 6.6


perform better

4 Compare 1 2.2 2.2

5 Employee 1 2.2 2.2


Feedback for
their work.

6 Essential 1 2.2 2.2

7 Fine 1 2.2 2.2

8 Good 1 2.2 2.2

9 Great 4 8.9 8.9

10 Hard work 1 2.2 2.2

11 I don't know 2 4.4 4.4

12 Important 2 4.4 4.4

13 Increase work 2 4.4 4.4

14 Making 1 2.2 2.2


managers and
employees
performance
better

15 Necessary 1 2.2 2.2

16 Ok 1 2.2 2.2

17 Perform better 2 4.4 4.4

18 Performance 1 2.2 2.2


53

improvement tool

19 Regular review of 1 4.4 4.4


employees job

20 Should improve 1 2.2 2.2

21 Which Benefits 1 2.2 2.2


employee to work
better

22 Which compares 1 2.2 2.2


employees
performance with
his given
objectives
Total 45 100.0 100.0

From the above table, employees define Performance appraisal system differently.
54

Method of Appraisal

To Know which Performance Appraisal method is Implemented by S-apps pvt ltd.


Table 4.20 : Method of Appraisal
20) Which method of performance appraisal is implemented in the organization?
Frequency Percent Valid Percent Cumulative Percent
Valid Ranking 45 100.0 100.0 100.0

From the above table we can say that, S-Apps is using Ranking method for Performance appraisal
system.
55

Findings
1. It was found that PAS was designed to achieve sustainable levels of higher performance from
managers .

2. It was found that PAS promotes development of managers to their full capacity and potential.

3. It was found that majority of employees feels PAS here creates open relations between top
management and subordinate managers.

4. It was found that majority of employees feels PAS aims at achieving sustainable improvement
in the performance of managers.

5. It was found that majority of employees feels It enables managers to develop their abilities and
increase job satisfaction.

6. It was found that majority of employees feels It provides an opportunity for individual
managers to express their aspirations / concerns about work.

7. It was found that majority of employees feels It provides basis for rewarding managers in
relation to their contribution by financial/ non-financial terms.

8. It was found that majority of employees feels It enables executives to manage their own
performance and development.

9. It was found that majority of employees feels Top management is not fully behind the scheme.

10. It was found that majority of employees says Managers feel that the scheme is having a
detrimental rather than a beneficial effect.

11. It was found that majority of employees feels PAS gives me the right goal and motive to
achieve it and opens door to superior performance.

12. It was found that majority of employees feels PAS enables managers to achieve full potential to
their own benefit and that of organization as a whole.

13. It was found that majority of employees feels PAS improves my motivation and morale.

14. It was found that majority of employees feels PAS encourages me to think of new ways of
performing my job more efficient.
56

15. It was found that majority of employees feels PAS gives each appraisee an idea of what is
expected of him the next year.

16. It was found that majority of employees feels PAS allows for the communication of company's
goals to the work force.

17. It was found that majority of employees feels PAS is an opportunity to talk freely to my
superiors about my further career.
57

SUGGESTIONS AND CONCLUSION

After having analyzed the data, it was observed that practically there was no appraisal
in the organization. To be an effective tool, it has to be on the continuous basis. This is
the thing that has been mentioned time and again in the report, as, in the absence of
continuity, it becomes a redundant exercise.

Suggestions

1. The very concept of performance appraisal should be marketed throughout the organization.
Unless this is done, people would not accept it, be it how important to the organization.

2. To market such a concept, it should not start at bottom, instead it should be started by the
initiative of the top management. This would help in percolating down the concept to the
advantage of all, which includes the top management as well as those below them. This means
that the top management has to take a welcoming and positive approach towards the change
that is intended to be brought.

3. Further, at the time of confirmation also, the appraisal form should not lead to duplication of
any information. Instead, detailed appraisal of the employee‟s work must be done – which
must incorporates both the work related as well as the other personal attributes that are
important for work performance.

4. It should be noted that the appraisal form for each job position should be different as each job
has different knowledge and skill requirements. There should not be a common appraisal form
for every job position in the organization.

5. The job and role expected from the employees should be decided well in advance and that too
with the consensus with them.

6. A neutral panel of people should do the appraisal and to avoid subjectivity to a marked extent,
objective methods should be employed having quantifiable data.

7. The time period for conducting the appraisal should be revised, so that the exercise becomes a
continuous phenomenon.
58

8. Transparency into the system should be ensured through the discussion about the employee‟s
performance with the employee concerned and trying to find out the grey areas so that training
can be implemented to improve on that.

9. Ideally in the present day scenario, appraisal should be done, taking the views of all the
concerned parties who have some bearing on the employee. But, since a change in the system
is required, it cannot be a drastic one. It ought to be gradual and a change in the mindset of
both the employees and the head is required.

Conclusion
Performance appraisal may be understood as the assessment of an individuals performance in a
systematic way. The performance being measured against such factors as job knowledge,
quality and quantity of output, initiative, leadership abilities, supervision,dependability, co-
operation, judgment, versatility, health and the like. It also helps in developing strength and
rectifies weakness of the employees. From the study it has been identified that the performance
appraisal is able to identify employees potential and find the motivating factors of employees.
The major drawback is in terms of the appraiser and his knowledge regarding employee’s job
responsibilities and duties. Performance appraisal can be conducted more effectively by using
the right tools and properly reviewing and updating the performance appraisal program.
59

BIBIOLOGRAPHY
1. Donna Price, President of Compass Rose Consulting, LLC, provides business coaching to small
business owners, business leaders, and work teams; using her experience as a senior level manager and
extensive background working with people to achieve their goals. The focus of her work is on building
businesses and helping individuals to launch their
dream.mail@businessbuildersintensive.comwww.businessbuildersintensive.comwww.compassrosecon
sulting.com

2. IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X.Volume 8, Issue 4


(Mar. - Apr. 2013), PP 66-83 www.iosrjournals.org www.iosrjournals.org 66 | Page Role of
Performance Appraisal System on Employees Motivation Muhammad Faseeh ullah khan (Lecturer –
Federal Urdu Art & Science University) http://www.iosrjournals.org/iosr-jbm/papers/Vol8-
issue4/H0846683.pdf
60

Annexures
61

Questionnaire
PROJECT TITLE: PERFORMANCE APPRAISAL

Name: ________________

Note:- PAS- Performance Appraisal System

Kindly choose the appropriate answers

1.PAS was designed to achieve sustainable levels of higher performance from managers .

a)Yes b)No

2.PAS promotes development of managers to their full capacity and potential.

a)Yes b)No

3.PAS here creates open relations between top management and subordinate managers.

a)Yes b)No

4.PAS aims at achieving sustainable improvement in the performance of managers.

a)Yes b)No

5.It enables managers to develop their abilities and increase job satisfaction. .

a)Yes b)No

6.It provides an opportunity for individual managers to express their aspirations / concerns about work.

a)Yes b)No

7.It provides basis for rewarding managers in relation to their contribution by financial/ non-financial
terms.

a)Yes b)No

8.It enables executives to manage their own performance and development.

a)Yes b)No

9.Top management is not fully behind the scheme.


62

a)Yes b)No

10.Managers feel that the scheme is having a detrimental rather than a beneficial effect.

a)Yes b)No

11.PAS gives me the right goal and motive to achieve it and opens door to superior performance.

a)Yes b)No

12.PAS enables managers to achieve full potential to their own benefit and that of organization as a
whole.

a)Yes b)No

13.PAS improves my motivation and morale.

a)Yes b)No

14.PAS encourages me to think of new ways of performing my job more efficient.

a)Yes b)No

15.PAS gives each appraisee an idea of what is expected of him the next year.

a)Yes b)No

16.PAS allows for the communication of company's goals to the work force.

a)Yes b)No

17.PAS is an opportunity to talk freely to my superiors about my further career.

a)Yes b)No

18.All in all, I am fully satisfied with the PAS.

a)Yes b)No

19.In your Opinion Performance Appraisal is ?


_______________

20. Which method of performance appraisal is implemented in the organization?

_______________
63

Reference

1. Heigel, The Encyclopedia of Management, New York, Reinhold Publishing Corporation,


1973.

2. Dale S. Beach, Personal Management, McMillan, New York, 1991.

3. Wayne F Cascio, Managing Human Resource : Productivity, Quality of work life, Profits,
McGraw-Hill Ryerson, 1994.

4. Fadil Osmani 2012


https://www.researchgate.net/publication/257715768_Performance_Management_Its_Assessm
ent_and_Importance.

5. Edwin B Flippo Principles of Personal Management, McGraw-Hill.

6. Muczyk, J. P. & Gable, M. (1987), Managing sales performance through a comprehensive


performance appraisal system. Journal of Personal Selling and Sales Management.

7. Hoppock R. (1935). Job Satisfaction, New York: Harper.

8. Db Bagul http://www.srjis.com/pages/pdfFiles/146770866815.D.%20B.%20Bagul.pdf.

9. Cummings (1973) “A Field Experimental Study of the Effects of Two Performance Appraisal
Systems”.

10. Patton (1973) “Does performance appraisal work?”

11. Randell (1973) “Performance appraisal: purposes, practices and conflicts”

12. Taylor and Wilsted (1974) “Capturing Judgment Policies: A Field Study of Performance
Appraisal”

13. Bedeian (1976) “Rater Characteristics Affecting the Validity of Performance Appraisals”.

14. Allinson (1977) “ A study of the effects of a training course on performance appraisal
interviewing.

15. Decotiis and Petit (1978) “The Performance Appraisal Process: A Model and Some Testable
Propositions”.
64

16. Wilsted and Taylor (1978) in their article titled, “Identifying Criteria for Performance
Appraisal Decisions”.
65

THANK YOU
66