Assignment

On
Emotional Marketing

Submitted by : Submitted to:

Kanhaiya Sah Mr.Kumar Rakesh
PGDM (2009-11) HOD,Marketing

I-Business institute
35,Knowledge Park II ,Greater Noida

June 2010
 TABLE OF CONTENT

S.NO. TITLE PAGE NO.

1. LITERATURE REVIEW
1.1MEANING

1.2CHARACTERISTICS
1.3ROLE

1.4PERFORMANCE MANAGEMENT CYCLE

1.5OBJECTIVES

1.6TYPES
1.7PERFORMANCE APPRAISAL CYCLE

1.8METHODS
1.9BENEFITS

COMPANY PROFILE
2.1 OVERVIEW OF THE SERUM

2.2 PRODUCT PROFILE OF SERUM

2.3 SWOT ANALYSIS

2.4 INFRASTUCTURE
2.5 PROCESS

2. RESEARCH METHODOLOGY
3.1OBJECTIVES OF STUDY

3.2COLLECTION OF DATA
 3.3SELECTING THE METHODOLOGY FOR EMPLOYEE

3.4LIMITATION OF STUDY

3. DATA ANALYSIS

4. FINDINGS

RECOMMENDATIONS AND RESULTS

ANNEXURE

BIBLIOGRAPHY
CHAPTER-1
INTRODUCTION
 PERFORMANCE APPRAISAL

Performance appraisal may be defined as a structured formal interaction

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

Performance appraisals are regular reviews of employee performance within

organizations.

Generally, the aims of a performance appraisal are to:

• Give feedback on performance to employees.

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

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

Performance appraisal, while enabling a manager to identify the training needs of

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

• Performance improvement
• Compensation
• Placement
• Training & development needs assessment
• Career planning
• Job design error detection
CHARACTERISTICS OF AN APPRAISAL SYSTEM

Performance appraisal cannot be implemented successfully unless it is accepted

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

Some of the important considerations in designing a performance appraisal

system are:

 Goal The job description and the performance goals should be structured,
mutually decided and accepted by both management and employees.
 Reliable and consistent Appraisal should include both objective and
subjective ratings to produce reliable and consistent measurement of
performance.

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

 Regular and routine While an appraisal system is expected to be formal in a

structured manner, informal contacts and interactions can also be used for
providing feedback to employees.

 Participatory and open An effective appraisal system should necessarily

involve the employee's participation, usually through an appraisal interview with
the supervisor, for feedback and future planning. During this interview, past
performance should be discussed frankly and future goals established. A
strategy for accomplishing these goals as well as for improving future
performance should be evolved jointly by the supervisor and the employee being
appraised. Such participation imparts a feeling of involvement and creates a
sense of belonging.

 Rewards Rewards - both positive and negative - should be part of the

performance appraisal system. Otherwise, the process lacks impact.

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

 Impersonal feedback Feedback must be impersonal if it is to have the

desired effect. Personal feedback is usually rejected with contempt, and
eventually de-motivates the employee.
 Feedback must be noticeable The staff member being appraised must be
made aware of the information used in the appraisal process. An open appraisal
process creates credibility.

 Relevance and responsiveness Planning and appraisal of performance and

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

 Commitment Responsibility for the appraisal system should be located at a

senior level in the organization so as to ensure commitment and involvement
throughout the management hierarchy.

WHAT IS THE ROLE OF PERFORMANCE APPRAISAL?

We've seen from previous discussions, that people are one of a company's most
valuable assets. While most assets depreciate over time, people, viewed as
assets, may actually appreciate. One of the manager's major responsibilities is to
improve and update the knowledge and skills of employees -- appreciation of
assets. Performance appraisal plays a significant role as a tool and technique of
organizational development and growth. In essence, effective appraisal systems
provide both evaluation and feedback.
The main aim of the evaluation is to identify performance gaps -- when
performance does not meet the organizational standards -- whereas feedback is
necessary to inform employee about those performance gaps.

From the employee's perspective, performance appraisal informs them about

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

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

Perhaps the most significant benefit of performance appraisals is the

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

Performance Appraisal and Motivation

Motivational research has recognized the power of recognition as an incentive

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

Performance appraisals identify performance gaps. As such, they provide an

excellent opportunity for a supervisor and subordinate to recognize and agree
upon individual training and development needs.

Performance appraisal discussion may identify the presence or absence of work

skills. Further, the need for training can be made more relevant if attaining the
requisite job skills is clearly linked to performance outcomes. Consolidated
appraisal data can also help form a picture of the overall organizational training
requirements.

Performance Appraisal and Recruitment

Recruitment and selection procedures need to be evaluated. Appraisal data can

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

Performance Appraisal and Employee Evaluation

Employee evaluation is a major objective of performance appraisal. Given the

major functions of management -- planning, organizing, leading and controlling --
it is clear that evaluations (controlling) need to be done.

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

Performance Appraisal and Total Quality Management (TQM)

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

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

However, there is no doubt that, without safeguards such as appropriate design,

adequate administrative support, comprehensive job analysis / description and
training for appraisers, conventional performance appraisal processes risk
becoming just another of the many bureaucratic rituals supervisors and
subordinates must endure.
THE PERFORMANCE
MANAGEMENT
CYCLE
T h e P e rfo r
M anagem
C y c le
 Objectives of appraisal

• To review the performance of the employees over a given period of time.

• To judge the gap between the actual and the desired performance.

• To help the management in exercising organizational control.

• Helps to strengthen the relationship and communication between superior –

subordinates and management – employees.

• To indentify the need of training and development programs for the employees.
To review the performance of the employees over a given period of time.
• To judge the gap between the actual and the desired performance.
• To help the management in exercising organizational control.
• Helps to strengthen the relationship and communication between superior –
subordinates and management – employees.
• To diagnose the strengths and weaknesses of the individuals so as to identify the
training and development needs of the future.
• To provide feedback to the employees regarding their past performance.
• Provide information to assist in the other personal decisions in the organization.
• Provide clarity of the expectations and responsibilities of the functions to be
performed by the employees.
• To judge the effectiveness of the other human resource functions of the
organization such as recruitment, selection, training and development.
• To reduce the grievances of the employees.

Some specific positive objectives of performance appraisal are:

 To review past performances
 To assess training needs
 To help develop individuals
 To audit the skills within an organization
 To set targets for future performance
 To identify potential for promotion

Types of Appraisals
The following is a description of the types of performance appraisals:
 1. Probationary/Trial - End of probation or trial period.
 2. Extension of Probation Period - At time of request for extension.
 3. Annual - One year from date of last review.
 4. Special - Beginning at end of special probation or when performance
substantially dropped during a review period.
 5.Change in Classification Promotion/ demotion/ transfer, etc.
 6. Separation - Separation from County service, when it has been more than
nine (9) months since the affected employee's performance has been evaluated

DIFFERENCE BETWEEN PERFORMANCE APPRAISAL AND

 PERFORMANCE MANAGEMENT SYSTEM:

 Performance Appraisal Performance management

 No customer involvement
 Static format
 Activities Based
 Results Only
 Job Description Focus
 Annual Event
 Top down Evaluation
 Retrospective Evaluation
 Direct customer involvement
 Flexible Format
 Objective/ Competencies Based
 Result/ process Measurement
 Linked To Strategic Priorities
 Team Participation
 On Going Interaction
 Multiple Resources of feedback
 Retrospective and Prospective
 Performance Appraisal is related to the targets assigned to the employee.

PERFORMANCE APPRAISAL PREPARATION

Appraisal systems should be job-related, have standards, be practical, and use

dependable measures. Considering that progression along pay scales might be
 effected by appraisal outcomes, any such system must be perceived to be (and
actually be) fair and objective.

Some characteristics to look for in an appraisal process are:

• Objectivity / measurability
• Work relatedness of measures
• Measures are within the appraisee's control
• Measures are attainable
• Contains an appeal mechanism
• Management commitment to the entire process -- training provided where
necessary
• Be simple and not take appraisers nor appraisees unduly away from their core
tasks
• Be sophisticated enough to ensure appraisees' perceptions of fairness
• Measuring clear competencies only
• Provides a feedback mechanism with a link to training and development

PERFORMANCE STANDARDS

Performance standards are the benchmarks against which performance is

measured. These standards must be based on job analyses and be directly
related to the desired results of each job.

If pay increases are dependent upon the outcome of the performance appraisal,
there can be no room for subjective, nebulous performance indicators. Great
divisiveness, jealousy and demotivation can be caused by poor performance pay
systems using inadequate or inappropriate benchmarks.

THE PERFORMANCE APPRAISAL CYCLE

 Discussion
 Informal
 Review
 Preparation
The preparation section of the cycle covers the pre-meeting work of the appraisal
and the appraise who both review results in the light of previously agreed
objectives and decide on any matters they want to raise at the appraisal
discussion.
 The formal appraisal section of the cycle is concerned with:
 Conducting the appraisal discussion;
 Overcoming any problem emerging during the appraisal.
 Concluding the appraisal by recording the results, agreeing action plans and,
as necessary, obtaining another view from the appraiser’s manager to ensure
that a fair and thorough appraisal has taken place.
The information review section of the cycle consists of:
 Information discussions that take place as and when required and may involve
updating objectives or performance plans;
 The process of coaching and counseling, which help to implement the
development and performance improvement programme.
 When appraisal should take place?

Formal appraisal discussions are often held annually but some fast moving organizations
prefer to have them twice a year or even more frequently, say at quarterly intervals.
When employees are working on some projects, as in a consultancy firm, there may be an
appraisal after every assignment. Ensuring that appraisal is a continuing process. To
ensure that appraisal is not just seen as a one- a-year event to be got over as quickly as
possible it is necessary to emphasize the continuing nature of the process in briefing and
training. Appraiser & appraiser should understand that feedback & appraisal are in effect
everyday occurrences.

PERFORMANCE APPRAISAL METHODS

 1. Graphic rating scale
2. Paired Comparison
3. Forced choice approach
4.Easy Appraisal
5. BARS
6. Checklist method
7. Critical incident method
8. 3600 appraisal
9.Mixed method

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

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

2)Various characteristics such as job knowledge or punctuality are rated by the

degree of achievement.

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

performance.

4)Some forms allow for additional comments.

Paired-comparison Approach: A performance appraisal that measures

the relative performance of employees in a group.

1)This is a method of performance evaluation that results in a rank ordering of

employees to come up with a best employee.

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

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

Easy Appraisal: Sometimes the supervisor must write a description of the

employee’s performance. The easy appraisal is often used along with other types
of appraisals, notably graphic rating scales. They provide an opportunity for
supervisors to describe aspects of performance not thoroughly covered by an
appraisal questionnaire.

The dis-advantage of this method is that their quality

depends on the supervisor’s writing skills.

Behaviorally Anchored Rating Scales:

A performance appraisal in which the employee is rated on scales containing
statements describing performance in several areas.

This is a method of performance appraisal that is tailored to the organization and

positions with in that organization.

Some organizations pay behavioral scientists or organizational psychologists to

create behaviorally anchored rating scales.

A checklist appraisal is a record of performance, not an evaluation by the

supervisor.

It contains a series of questions about the employee’s performance.

The supervisor checks boxes to answer the questions yes or no.

The human resources department has a key for scoring the items resulting in a
rating of the employee’s performance.
Critical-incident Appraisal: A performance appraisal in which the
supervisor keeps a record of incidents that show positive and negative ways the
employee has acted; the supervisor uses this record to assess the employee’s
performance.

Some of the important forms of ranking for performance appraisal are given
below, based on Oberg, 1972; and Monga, 1983:
(a) Alteration ranking method The individual with the best performance is chosen
as the ideal employee. Other employees are then ranked against this employee
in descending order of comparative performance on a scale of best to worst
performance. The alteration ranking method usually involves rating by more than
one assessor. The ranks assigned by each assessor are then averaged and a
relative ranking of each member in the group is determined. While this is a
simple method, it is impractical for large groups. In addition, there may be wide
variations in ability between ranks for different positions.

(b) Paired comparison The paired comparison method systematizes ranking and
enables better comparison among individuals to be rated. Every individual in the
group is compared with all others in the group. The evaluations received by each
person in the group are counted and turned into percentage scores. The scores
provide a fair idea as to how each individual in the group is judged by the
assessor.

(c) Person-to-person rating In the person-to-person rating scales, the names of

the actual individuals known to all the assessors are used as a series of
standards. These standards may be defined as lowest, low, middle, high and
highest performers. Individual employees in the group are then compared with
the individuals used as the standards, and rated for a standard where they match
the best. The advantage of this rating scale is that the standards are concrete
and are in terms of real individuals. The disadvantage is that the standards set by
different assessors may not be consistent. Each assessor constructs their own
person-to-person scale which makes comparison of different ratings difficult.
(d) Checklist method The assessor is furnished with a checklist of pre-scaled
descriptions of behaviour, which are then used to evaluate the personnel being
rated (Monga, 1983). The scale values of the behaviour items are unknown to
the assessor, who has to check as many items as she or he believes describe
the worker being assessed. A final rating is obtained by averaging the scale
values of the items that have been marked.

(e) Behaviourally anchored rating scales (BARS) This is a relatively new

technique. It consists of sets of behaviourial statements describing good or bad
performance with respect to important qualities. These qualities may refer to
inter-personal relationships, planning and organizing abilities, adaptability and
reliability. These statements are developed from critical incidents collected both
from the assessor and the subject.

(f) Assessment centres This technique is used to predict future performance of

employees were they to be promoted. The individual whose potential is to be
assessed has to work on individual as well as group assignments similar to those
they would be required to handle were they promoted. The judgment of
observers is pooled, and paired comparison or alteration ranking is sometimes
used to arrive at a final assessment. The final assessment helps in making an
order-of-merit ranking for each employee. It also involves subjective judgment by
observers.

360-degree Performance Appraisal: Evaluating Employees From All

Angles

Traditional performance appraisals, as discussed above, can be both subjective

and simplistic. At times, they can also be deemed to be "political". In an attempt
to improve this methodology, some companies have turned to 360-degree
appraisals. 360 appraisals pool feedback from a department's internal and
external customers to ensure a broader, more accurate perspective of an
employee's performance.
360-degree performance appraisal is an attempt to answer the question: "How
can a supervisor evaluate an employee he or she sees only a few hours each
week?"

Using internal and external clients

360-degree performance appraisals offer an alternative by which organizations

may gain more useful performance information about employees. Because all
clients/customers an employee comes into contact with can conceivably have
input into the performance appraisal, this methodology can also makes them
more accountable to their customers.

Using a courtroom metaphor, one could say that, rather than having a single
person play judge, a 360-degree appraisal acts more like a jury. People who
actually deal with the employee each day have an opportunity to create a pool of
information from which the appraisal is written. Internal clients may include
supervisors, subordinates, co-workers, and representatives from other
departments. External customers may include clients, suppliers, consultants and
customers.

Perceived fairness

Given the use of a wide variety of sources for information in the 360-appraisal
process, this method provides a broader view of the employee's performance.
Frequently, the employee on whom the appraisal is being done (the ratee) will
feel that the process is more fair.

Validity

Very often, an employee's peers know their behaviors best. Consequently,

employees cannot hide as easily in 360-degree appraisals.
Employee development

360-degree appraisal enables an employee to compare his or her own

perceptions of their work performance with the perception of others. As such, the
method facilitates employee self-development. Feedback from one's peers is
more likely to lead to changed behaviors.

Accountability to customers

A 360-degree appraisal process provides a formalized communication link

between the employee being evaluated and their customers. These people now
have feedback into the employee's performance rating. As such, the process is
likely to make the employee more accountable to his or her various internal and
external customers. Furthermore, organizations can also use this feedback to
create more customer-oriented goals for the following year.

The raters: how many and who?

One issue employers must solve in implementing a 360-degree appraisal

program is determining how many raters should be involved. Next, the
organization must decide who should do the rating. Generally speaking, less than
five raters limits the perspective while more than ten raters is likely to make the
appraisal system complex and time consuming. A firm would be well advised to
develop a workable definition of what constitutes a peer, an internal customer, an
external customer, a supervisor, etc. For example, to be useful, the customer
ought to be one who has significant interactions with the ratee.

Some organizations permit the ratee to develop a list of key internal and external
customers that he or she interacts with. The ratee then recommends five to ten of
these individuals to serve as raters. In this process, the supervisor still retains the
ultimate responsibility for the appraisal and therefore ensures that appropriate
raters are selected. The ratee is thus prevented from stacking the deck with
supportive customers.

Another option has the raters selected at random from the ratee's team by a
computer-generated system. Those selected are then notified by E-mail to
participate in the appraisal.

Limitations on the use of external clients

An organization contemplating the use of the 360-degree process must keep in

mind that reviewing that organization's employees' performance is not the
customer's business. To ensure the customers' cooperation, the process should
be a mutually beneficial process.

Furthermore, the various external customers would ideally evaluate the ratee
only on the behaviors or work incidents that they have directly observed. This, of
course, also holds for internal raters.

Summarizing the data

Once all raters have supplied their appraisals, the employee's supervisor is
generally responsible for summarizing the data and determining the final
performance rating.

After summarizing the data, the supervisor conducts the formal appraisal
interview with the ratee.

Another variation of the summary process makes the ratee responsible for
summarizing the feedback data from the raters. The ratee then submits a
summary analysis to his or her supervisor. The ratee and the supervisor then
meet to determine the ratee's final performance rating and development plan.
Rater confidentiality

Organizations must decide whether the feedback from the various raters should
be kept anonymous or be identified to the employee. Sometimes raters give
fuzzy feedback because of the fear that the feedback might come back to them.

One rule rule might be that no rater can give negative feedback in the appraisal
unless that rater has previously given the feedback directly to the ratee. Most
organizations should start with a policy of confidentiality until sufficient
understanding, maturity and organizational trust is achieved.
 Benefits of Performance appraisal

For the organization:

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

For the appraise:

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

Are many other question, which make them

assess rightly. ..
Guidelines for effective performance evaluation interviews...

• emphasize positive aspects of employee performance

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

Appraisal Process

In order to obtain a better understanding of how the performance appraisal has

been put together by The Corporation, the researcher has provided an overview
of the company’s performance appraisal process. The researcher felt that the
overview of the performance appraisal process would be necessary, since the
process provided a framework for the performance appraisal.

PRE-APPRASIAL STEPS

The performance evaluation can be made for variety of reasons

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

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

“WHO “OF THE APPRAISAL OR ‘’WHO’’ IS TO RATE.

The immediate superior, the head of the department or any other can rate
the performance of an individual. In addition to this, sum organizations follow the
system of self appraisal and /or appraisal by peers. A group, consisting of his
senior, peers and subordinates, can do appraisal, whoever is rating; he should
be trained and impartial. In most of the organizations the ratings is done by his
immediate superior who is considered the best person to understand his
subordinates strengths and weaknesses. Now a day some organizations are
following the method of self-appraisal.
THE “WHAT”OF APPRAISAL

It is considered with

 Creating and maintaining a satisfactory level of performance of employees

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

THE ‘WHEN’ OF APPRAISAL

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

THE ‘WHERE’ OF APPRAISAL

The where indicates the location where employee should be evaluated? It

is usually done at work place or office of the supervisor.

THE ‘HOW’ OF APPRAISAL

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

The performance appraisal process at the companies has been stated by The
Corporation as consisting of four inter-related steps. The first step was to
establish a common understanding between the manager (evaluator) and
employee (evaluatee) regarding work expectations; mainly, the work to be
accomplished and how that work was to be evaluated. The second step was an
ongoing assessment of performance and the progress against work expectation.
Provisions were made for the regular feedback of information to clarify and
modify the goals and expectations, to correct unacceptable performance before it
was too late, and to reward superior performance with proper praise and
recognition. Step three was the formal documentation of performance through
the completion of a performance and development appraisal form appropriate to
the job family.

The final step being the formal performance and development appraisal

discussion, based on the completed appraisal form and ending in the

construction of a Development Plan. Also noted was that The Corporation
considered the performance appraisal process to have been within the larger
content of the other performance related processes of work planning and salary
action.
Reasons for Performance Appraisal Failures

Where performance appraisal fails to work as well as it should, lack of support

from the top levels of management is often cited as a major contributing reason.

Opposition may be based on political motives, or more simply, on ignorance or

disbelief in the effectiveness of the appraisal process.

It is crucial that top management believe in the value of appraisal and express
their visible commitment to it. Top managers are powerful role models for other
managers and employees.

Those attempting to introduce performance appraisal, or even to reform an

existing system, must be acutely aware of the importance of political issues and
symbolism in the success of such projects.

Employee Participation

Employees should participate with their supervisors in the creation of their own
performance goals and development plans. Mutual agreement is a key to
success. A plan wherein the employee feels some degree of ownership is more
likely to be accepted than one that is imposed. This does not mean that
employees do not desire guidance from their supervisor; indeed they very much
do.
Performance Management

One of the most common mistakes in the practice of performance appraisal is to

perceive appraisal as an isolated event rather than an ongoing process.

Employees generally require more feedback, and more frequently, than can be
provided in an annual appraisal. While it may not be necessary to conduct full
appraisal sessions more than once or twice a year, performance management
should be viewed as an ongoing process.

Frequent mini-appraisals and feedback sessions will help ensure that employees
receive the ongoing guidance, support and encouragement they need.

Of course many supervisors complain they don't have the time to provide this
sort of ongoing feedback. This is hardly likely.What supervisors really mean
when they say this is that the supervision and development of subordinates is not
as high a priority as certain other tasks.

In this case, the organization may need to review the priorities and values that it
has instilled in its supervisory ranks. After all, supervisors who haven't got time to
monitor and facilitate the performance of their subordinates are like chefs who
haven't got time to cook, or dentists who are too busy to look at teeth. It just
doesn't make sense.

If appraisal is viewed as an isolated event, it is only natural that supervisors will

come to view their responsibilities in the same way. Just as worrying, employees
may come to see their own effort and commitment levels as something that
needs a bit of a polish up in the month or two preceding appraisals.

Performance appraisals purpose - and how to make it easier

Performance appraisals are essential for the effective management and

evaluation of staff. Appraisals help develop individuals, improve organizational
performance, and feed into business planning. Formal performance appraisals
are generally conducted annually for all staff in the organization. Each staff
member is appraised by their line manager. Directors are appraised by the CEO,
who is appraised by the chairman or company owners, depending on the size
and structure of the organization.

Annual performance appraisals enable management and monitoring of

standards, agreeing expectations and objectives, and delegation of
responsibilities and tasks. Staff performance appraisals also establish individual
training needs and enable organizational training needs analysis and planning.

Performance appraisals also typically feed into organizational annual pay and
grading reviews, which commonly also coincides with the business planning for
the next trading year.

Performance appraisals generally review each individual's performance against

objectives and standards for the trading year, agreed at the previous appraisal
meeting.

Performance appraisals are also essential for career and succession planning -
for individuals, crucial jobs, and for the organization as a whole.

Performance appraisals are important for staff motivation, attitude and

behaviour development, communicating and aligning individual and
organizational aims, and fostering positive relationships between management
and staff.

Performance appraisals provide a formal, recorded, regular review of an

individual's performance, and a plan for future development.

Job performance appraisals - in whatever form they take - are therefore vital
for managing the performance of people and organizations.
Managers and appraisees commonly dislike appraisals and try to avoid them. To
these people the appraisal is daunting and time-consuming. The process is seen
as a difficult administrative chore and emotionally challenging. The annual
appraisal is maybe the only time since last year that the two people have sat
down together for a meaningful one-to-one discussion. No wonder then that
appraisals are stressful - which then defeats the whole purpose.

Appraisals are much easier, and especially more relaxed, if the boss meets
each of the team members individually and regularly for one-to-one
discussion throughout the year.

Meaningful regular discussion about work, career, aims, progress, development,

hopes and dreams, life, the universe, the TV, common interests, etc., whatever,
makes appraisals so much easier because people then know and trust each
other - which reduces all the stress and the uncertainty.

Put off discussions and of course they loom very large.

So don't wait for the annual appraisal to sit down and talk.

The boss or or the appraisee can instigate this.

If you are an employee with a shy boss, then take the lead.

If you are a boss who rarely sits down and talks with people - or whose people
are not used to talking with their boss - then set about relaxing the atmosphere
and improving relationships. Appraisals (and work) all tend to be easier when
people communicate well and know each other.
So sit down together and talk as often as you can, and then when the actual
formal appraisals are due everyone will find the whole process to be far more
natural, quick, and easy - and a lot more productive too.

Chapter-2

Company Profile
PUT YOUR OWN
COMPANY PROFILE!!!
(EG:
AMUL,MARUTI,NOKIA
ETC) JUST COPY PASTE
FROM THE WEBSITES.
 Chapter -3
Research methodology

RESEARCH DESIGN
 The present research is exploratory; therefore the research design adopted is
Flexible, flexible enough to include any information that can give new insight into the
subject or change the scope of the study. Also termed Formulative Research
studies, it involves formulating a problem for a more precise investigation or of
developing the working hypothesis from an operational point of view. This research
have inbuilt flexibility. The problem, initially defined broadly, is transformed into one
with more precise meaning in exploratory studies.

So the methods adopted to collect the data are Questionnaire, and relevant
secondary data was also consulted.

The place chosen to gather data is offices, where everyone would be an Investor.
Any other place would not have been that efficient as time and money effort
required would have been substantially high.

**PUT THE APPRAISAL FORMS WHICH WERE

DOWNLOADED IN THE CLASS **
 OBJECTIVES

1.To apply my theoretical knowledge in real working situations.

2. To know about the role of HR department an organization.

3. To study the real performance appraisal process.

4. To develop my abilities like communication skills, decision making and

problem solving power.

5. If employees understand their roles well, they are likely to be more effective
on the job.

To achieve the objectives of the research the data collected is of

two types:
 1.Primary data is collected by questionnaire, interview and observations
 2.Secondary data is collected from the company records.
 Selection of samples is based on RANDOM REPRESENTATIVE SAMPLING
from all the departments and categories of employees
 The sample size is 100 EMPLOYEES
 Most of the questions are objective type except a few on comment and
suggestions regarding training
 A few respondents were interviewed to counter check their response in the
questionnaire to assess the clarity of questions and validity of answers.

Limitations

1. Some employees were not ready to fill the self appraisal part of the form.

2. Making of KRA’s for me was not easy because it was first attempt of my self.

3. Some of the employees had not enough time for filling my forms due their
business.

4. My theoretical knowledge of first & second semester was not enough for this
project.
 CHAPTER-4
DATA ANALYSIS
Analysis and Interpretation

In order to covert collected data to meaningful information, the collected must be

coded in graphical and in some general formats. One important use of coding
and

graphical is to easily understand the relationships with different variables.

1)Analysis of appraisal of workers

1. Attendance-:

After appraising the employees I found that 95% of workers attains above 95%
attendance. The left 5%are job hoppers.

2. Job Knowledge-:

All the employees have good job knowledge and meets expectations.

3. Behavior-:

Behavior of 98% employees is excellent & good.

4. Behavior-:

- I am taking these performance standards both because these are interrelated

as the target is for a team not of an individual. So a good team player is a good
achiever. In these two categories 90% employees are good team players and
90% employees are target achievers.
2)Analysis of staff employee’s appraisal

I had taken five rating scales i.e.

OVERALL RATING
O =Outstanding = 100-91
A = Good = 90-76
B= Average = 75-51
C =Below Average = 50-35
D = Poor = Below 35

1. In outstanding category there is 5% employee

2. In category A i. e. good 60% employees falls

3. Most of the employees are under category of average and the % is 25.

4. Employees having below average are 10%.

5. In the poor category no employee I found.

46

Learning

1. Function of HR department in a manufacturing firm.

2. Solving hurdles in the process of appraisal

3. Paper manufacturing process.

4. Manpower required for the company.

5. Solving employees’ problems.

6. Organizational structure
 CHAPTER-5

FINDINGS & SUGGESTIONS

 Findings

• Include supervisors and managers responsible for conducting performance

appraisals and the executive to whom they report.

• Meeting should be led by experienced facilitator, such as organization’s head

of HR, internal HR person trained as a facilitator or an external consultant

• Core of the meeting:

• Discussion of each employee’s performance rating and the supervisor’s

reasons for that rating.

• Start with the outliers (extreme lows or highs)

• ID high performers and why

• Should be done before all performance ratings and compensation decisions

are finalized.
 Suggestions

1. To improve attendance there should be rewards for those employees who

attains above 95% attendance.

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

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

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

• Finding job responsibilities of employees is easy but making of KRA’s is

quite challenging.

• Performance appraisal is a vehicle to validate and refine organizational

actions (e.g. selection, training);
• Performance appraisal provides feedback to employees with an eye on
improving future performance.

• Performance of almost all employees is good.

• Environment of the company is very good.

 Annexure

1. Appraisal form for workers

2. Appraisal form for staff

(These are attached with this report)

PUT THE APPRAISAL FORMS

WHICH WERE DOWNLOADED IN
THE CLASS.
Bibliography

Aswathappa K, Human Resource & Personnel Management, Tata McGraw-

Hill Publishing Co. Ltd., New Delhi, Sixth edition 2001

Kothari C.R., Research methodology methods & techniques, Wishwa

Prakasan ublishing Co. Ltd., New Delhi, Sixth edition 2001.

Human Resources Management by P.Subarao

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