SUMMER INTERNSHIP PROGRAM

REPORT ON
PERFORMANCE APPRAISAL OF EMPLOYEE
PROGRAM AT MURALI FORTUNE PARK

BY: SIDDHI JAIN

170541253
BBA 2ND YEAR
SUBMITTED TO:
Dr.

A report submitted in partial fulfilment of the

requirements of
The BBA-MBA Program (Class of 2019)
KLU Business School
OBJECTIVES:
 To study the need and importance of “Performance Appraisal”.
 To portray the profile of “MURALI FORTUNE PARK”.
 To study the performance appraisal implementation in MURALI FORTUNE PARK.
 To make data analysis and interpretation based on the perception of the employee in
the organization.
 To summarize and find certain suggestions for the impotent of Performance Appraisal
system in the company.
 To get insights into organizations, its longevity, its profitability and its relations
effecting the profitability.
 Learn To make healthy relations in world of business.
 To learn how does an organizations ensure survival in its tough times.
 To understand how an organization does adapts to the dynamic changes that occur in
the business environment.

TARGETS DURING SIP:

TARGETS
1. To know about the company structure and its functioning.
2. To have a knowledge about the parent company and its functionality.
3. To achieve the objectives of the SIP.
4. To study various departments in the organization.
5. To prepare a SWOT analysis regarding the company.
6. To do the assigned work within the time frame.
7. To learn about the performance appraisal in the company.
8. To understand the process and ways adapted by the company for evaluating the
performance of the employees.
9. To gather information from the employees regarding the working environment in the
company with the help of a questionnaire.
STRATEGIES
Utilize Performance Management Software
Monitoring employee performance with check-ins and meetings
Offering rewards and praise for good performance and addressing poor performance
Regularly rating performance through summaries and reviews
Set Regular Meetings to Discuss Outcomes and Results

PERFORMANCE APPRAISAL

Performance appraisal is a method of evaluating the behavior of employees in the

work spot, normally including both the quantitative and qualitative aspects of hob
performance. Performance here refers to the degree of accomplishment of the tasks that make
up an individual's job. It indicates how well an individual is fulfilling the job demands. Often
the term is confused with effort, but performance is always measured in terms of results and
not efforts.

Some of the important features of performance appraisal given, they are:

1. Performance appraisal is the systematic description of an employee's job- relevant strengths

and weaknesses.
2. The basic purpose is to find out how well the employee is performing the job and establish
a plan of improvement.
3. Appraisals are arranged periodically according to a definite plan.
4. 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.

Why is Performance Appraisal important?

• Performance appraisal is helpful in assessing a firms human resources data must be

available that describe the promobility and potential of all employees.
• A well designed appraisal system provides a profile of the organization's human
resource strengths and weaknesses to support this effort.
 • Performance evaluation ratings may be helpful in predicting the performance of job
applicants.
• Performance appraisal will point out employee specific needs for training and
development.
• Performance appraisal is useful in career planning and development.
• Performance appraisal results provide a basis for rational decisions regarding
compensation programs.
• Performance appraisal data are also frequently used for decisions in several areas of
internal employee relations, including promotion, demotion, termination, lay-off. and
transfer.
• Performance appraisal is useful in assessment of employee potential.

• Performance appraisal can be used to determine whether HR programs such as

selection, training, and transfers have been effective or not.

Why Performance Appraisal in Murali Fortune Park?

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.

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.

The manager here at Murali fortune makes sure that it 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 it conducts a thorough performance-boosting

employee evaluation.

Performance appraisals are necessary. Often a subordinate’s first performance appraisal at

Murali Fortune occurs at the end of a probationary period, anywhere from 30 to 90 days after

their start date.

Here it may be informal or formal, documented or undocumented, scheduled or unscheduled.

The point is to 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.

Components of performance appraisal

The following are the components of performance appraisal form.

 Identification of key performance areas

 Identification of qualities for job performance

 Self-appraisal
 Analysis

 Discussion

 Identification of training needs

 Action plan and goal settings for the future

 Final assessment
Appraisal Process:

Each step in the process is crucial and is arranged logically. Many organizations make
every effort to approximate the ideal process, resulting in first-rate appraisal systems.
Unfortunately, many others fail to consider one or more of the steps and, therefore have less-
effective appraisal system.

Objectives of

Performance appraisal

Establish job

Expectations

Design an appraisal

Program

Appraise performance

Performance

Interview

Use appraisal data for an

appropriate purpose
1. Objectives of Appraisal:

Objectives of appraisal include effecting promotions and transfers, assessing training

needs, awarding pay increases, and the like. The emphasis in all these is to correct the
problems.

2. Establish job expectations:

The second step in the appraisal process is to establish job expectations. This
includes informing the employee what is expected of him or her on the job.

3. Design appraisal program:

Designing an appraisal program posses several questions which need answers. They
are (i) Formal versus informal appraisal; (ii) Whose performance is to be assessed? (iii) Who
are the raters? (iv)What problems are encountered? (v) How to solve the problems? (vi)
What should be evaluated? (vii) When to evaluate? (viii) What methods of appraisal are to
be used?

4. Performance Interview:

Performance interview is another step in the appraisal process. Once appraisal has
been made of employees, the raters should discuss and review the performance with the
rates, so that they will receive feedback about where they stand in the eyes of superiors.

5. Use of Appraisal data:

The final step in the evaluation process is the use of evaluation data. The data and
information generated through performance evaluation must be used by the HR department.
Methods of Performance Appraisal at Murali Fortune hotel:

With the evaluation and development of appraisal system, a number of methods or

techniques of performance appraisal have been used at Murali Fortune. The traditional ad
modern methods used here are as follows:

Traditional Methods

1) Graphic Rating Scales:

Graphic rating scales compare individual performance to an absolute standard. In this

method, judgments about performance are recorded on a scale. This is the oldest and widely
used technique. This method is also known as linear rating scale or simple rating scale. The
appraisers are supplied with printed forms, one for each employee. These forms contain a
number of objectives, behavior and trait - based Qualities and characters to be rated like
quality and volume of work, job knowledge, dependability, initiative, attitude etc., in the case
of workers and analytical ability, creative ability, initiative, leadership qualities, emotional
stability in the case of managerial personnel. These forms contain rating of scales. Rating
scales are of two types, viz., continuous rating scale and discontinuous rating scales. In
continuous order like o, 1, 2, 3, 4 and 5 and in discontinuous scale the appraiser assigns the
point to each degree. The points given by the rater know performance regarding each
character. The points given by the rater to each character are added up to find out the overall
performance. Employees are ranked on the basis of total points assigned to each one of them.

One reason for the popularity of the rating scales is its simplicity, which permits
many employees to be quickly evaluated. Such scales have relatively low

Design cost and high in case of administration. They can easily pinpoint significant
dimensions of the job. The major drawback to these scales is their subjectivity and low
reliability. Another limitation is that the descriptive words often used in such lies may have
different meanings to different raters.
2) Ranking Method:

Under this method the employees are ranked from best to worst on some
characteristics. The rater first finds the employee with the highest performance and the
employees with the lowest performance in that particular job category and rates the former as
the best and the later as the poorest. Then the rater selects the next highest and next lowest
and so on until he rates all the employees in that group. Ranking can be relatively easy and
inexpensive, but its reliability and validity may be open to doubt. It may be affected by rater
bias or varying performance standards. Ranking also means that somebody would always be
in the backbench. It is possible that the low ranked individual in one group may turnout to be
superstar in another group. One important limitation of the ranking method is that size of the
different between individuals is not well defined. For instance, there may be little difference
between those ranks third and fourth.

3) Paired Comparison Method:

This method is relatively simple. Under this method, the appraiser ranks the
employees by comparing one employee with all other employees in the group, one at a time.
As illustrated, this method results in each employee being given a positive comparison total
and a certain %age total positive evaluation.

Example: A B C D E

A - A A A A

B - - C D E

C - - - D E

D - - - - E

E - - - - -
To compute Employee's positive evaluations:

Number of positive evaluations X 100 = Employee's % Superior evaluation Total

number of evaluations

Employee A Employee B Employee C Employee D Employee E

(4/4)* 100=100% (0/4)* 100=0% (2/4)* 100=50% (1/4)* 100=25% (3/4) * 100 = 75%

Modern Methods

1) Behaviourally Anchored Rating Scales (BARS):

The Behaviourally Anchored Rating Scales (BARS) method combines elements of the
traditional rating scales and critical incidents methods. Using BARS, job behaviours from
critical incidents - effective and ineffective behaviours are described more objectively. The
method employs individuals who are familiar with a particular job to identify its major
components. They then rank and validate specific behaviours for each of the components.
BARS require considerable employee participation; its acceptance by both supervisors and
their subordinates may be greater. Proponents of BARS also claim that such a system
differentiates among behaviour, performance and results, and consequently is able to provide
a basis for setting developmental goals for the employee. Because it is job - specific and
identities observable and measurable behaviour, it is more reliable and valid method for
performance appraisal.

2) Assessment Centre:

This method of appraising was first applied in German Army in 1930. Later business
and industrial houses started using this method. This is not a technique of performance
appraisal by itself. In fact it is a system or organization, where assessment is done by several
individuals and also by various experts by using various techniques.
In this approach individual from various departments are brought together to spend two or
three days working on an individual or a group assignment similar to the ones they'd be
handling when promoted. All assess get an equal opportunity to show their talents and
capabilities and secure promotion based on merit. An assessment model is shown below.

Human Resource Accounting deals with cost of and contribution of human resource
to the organization. Cost of the employee includes cost of manpower planning, recruitment,
selection, induction, placement, training, development, wages and benefits etc. employee
contribution is the money value of employee service which can be measured by labour
productivity or value added by human resources.

3) Management by objectives:

Although the concept or management by objectives was advanced by Peter F.Duckers

way back in 1954, it was described only recently as 'large range' in performance appraisal.
Refinements brought out by George Odione, Valentines, Humble and others have enriched
the concept and made it more acceptable all over the globe as an MBO in their work settings.
Some of the companies which implemented MBO reported excellent results, others
disappointments, and many in decisions. Started briefly, MBO is a process whereby the
superiors and subordinate managers of an organization jointl y identify its common goals,
define each individual's major areas of responsibility in terms of results excepted of him, and
use these measures of guides for operating the unit and assessing the contribution of its
members. Generally, the unit and assessing the contribution of its members.

Generally the MBO is undertaken along the following lines.

■ The subordinate and superior jointly determine goals to be accomplished during the
appraisal period and what level of performance is necessary for the subordinate to
satisfactory achieve specific goals.
■ During the appraisal period the superior and subordinate update and later goals as
necessary due to changes in the business environment.
Problems with Performance Appraisal

1) Compare/contrast error

When appraising employees, it is important never to compare their abilities and using it to
make a judgment.

Each employee is gifted in their unique way and thus has different strengths and weaknesses.
When you try to compare or contrast their abilities, it means that you will not get a fair
review because high performers will certainly make relatively low performers for particular
tasks to look below average, which on some occasions is never the case.

Of essence is to ensure that you appraise every worker by their performance against
established standards and criteria, individually.

2) Similarity error
In every organization, some employees have a resemblance of different aspects with the
manager. Now some managers usually find it easy to reward such employees highly
compared to those who portray contrasting behaviour or opinion.
As a manager, it would be significant to ensure that you perform your employee appraisal
objectively and considering that diversity should be respected, try to carry out the appraisal
process based on performance and results that they provide and not primarily by
similarity/dissimilarity that you have.

3) Bias

Bias is also one of the problems with performance appraisal managers often encounter. As a
matter of fact, everyone has some biases towards someone or something irrespective of how
we portray them. However, as a manager, it is imperative not to let the biases hinder the
manner in which you approach performance evaluation process.

Your biases can manipulate the objectivity of appraisal hence it is important to ensure that
you keep it off as much as possible to make sure that you do not compromise the results of
your findings. Biases may also lead to inconsistencies among different employees bearing in
mind that the key element for attaining best results from appraisal is consistency.

If you do not like someone it will not be right to use that feeling in making review judgment,
it is unprofessional.

4) Stereotyping

Stereotyping is closely related to biases only that in this case, you tend to make your
judgment by your predetermined mindset towards a particular employee’s race, gender,
political affiliation, religious background, culture and other characteristics.

Stereotyping is problematic when assessing employees’ performance because it implies that

you will only be able to provide judgment based on what you label the group similar to one
that the particular employee belongs to.

What you need to know is that stereotyping can also be positive or negative and thus can
significantly influence your judgment respectively. It is only ideal to look beyond the labels
and evaluate the employee by set standards and performance.
ACHIEVEMENTS

 Complete understanding about the company and its functionality.

 Prepared a questionnaire based on the employees review.
 Had a tour of various departments of the hotel.
 Interacted with some employees and managers regarding our queries formed during
the SIP program.
 Held a meeting with some employees and also reviewed their performance of one
month.
 Gave suggestions and feedbacks regarding their level of performance with the help of
Company guide.

LIMITATIONS

As the study revolves around the performance appraisal of human resources aspects the
overall organization performance cannot be ascertained. In spite of giving honest and sincere
efforts there are several limitations, which are as follows:

 The period of study is only for about 2months, which is a major constraint.

 The perception bias or attitude of the respondents may also act as hurdles to the study.

 The study is only confined to performance appraisal.

 The study cannot be oriented with all HRM practices followed by MURALI
FORTUNE PARK because of the paucity of time requirements.

 The sample size taken for the research is small due to the constraint of time.
CONCLUSION
It has been a wonderful experience working with MURALI
FORTUNE PARK HOTEL as they have given me an opportunity to learn about
the human resource management sector of the company. I have been to various
departments in the company and knowing about all the operations of the
organization. I have visited various clients, managers and employees who
explained about the various things and methods of performance appraisal which
the company uses to evaluate its employees. It is very important to maintain good
relations in the world of business to ensure survival. An effective time
management allows us to do our assignment efficiently and meet our schedules on
time which thus increases the credibility of the employees. In working
environment, teamwork is vital in contributing to a strong organization. Teamwork
is also essential in reaching the goals of the organization as an entity. Thus,
communicating and sharing is much needed in the working environment among the
employees as well as between the various levels of the company. This is because
working together as a team is easier in reaching our targets, rather than operating
individually.