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A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL
SILICON CITY COLLEGE OF MANAGEMENT AND COMMERCE Page 1
CHAPTER – I
INTRODUCTION
A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL
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THEORITICAL FRAMEWORK
Appraising the performance of individuals, groups and organization is a common practice
of all societies. While in some instances these appraisal processes are structured and
formally sanctioned, in other instances they are an informal and integral part of daily life.
A performance is a process of evaluating an employee’s performance of a job in terms of
its qualification .It is a process of judging the values, qualities, excellence, qualities or
status of some object, person or thing.
Meaning:
Performance appraisal is the process of obtaining, analyzing and recording information
about the relative worth of an employee. The focus of the performance appraisal is
measuring and improving the actual performance of the employee and also the future
potential of the employee. Its aim is to measure what an employee does.
Definition:
According to Heyel “it is a process of evaluating the performance and qualification of the
employees in terms of the job for which he is employed, for purpose of administration
including placements election for promotions, providing financial rewards and other
actions which require differential treatment among members of a group as distinguished
from actions affecting all members equally.
Need for performance appraisal
Performance Appraisal is being practiced in 90% of the organizations worldwide. Self-
appraisal and potential appraisal also form a part of the performance appraisal processes.
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Typically, Performance Appraisal is aimed at:
To review the performance of the employees over a given period of time.
To help the management in exercising organizational control.
To diagnose the training and development needs of the future. Provide
information to assist in the HR decisions like promotions, transfers.
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.
Helps to strengthen the relationship and communication between superior –
subordinate and management-employees.
Objectives of performance appraisal:
Increase staff self-esteem.
Gain new insight into staff and supervisors.
Better clarify and define job functions and responsibilities.
Develop valuable communication among appraisal participants.
Encourage increased self-understanding among staff as well as insight into the
.Kind of development activities that are of value.
Distribute rewards on a fair and credible basis.
Clarify organizational goals so they can be more readily accepted.
Improve institutional/departmental manpower planning, test validation, and
development of training programs
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Appraisal System Attributes: Clarity, Openness, and Fairness
The performance appraisal system must possess the attributes of clarity, openness, and
fairness. These attributes are related to the historic values of the student affairs
profession. While specific implementation of these attributes may vary, the following
should be represented in effective performance appraisal:
Ongoing Review of Position and Performance:
Effective performance appraisal systems conduct ongoing evaluations of both the
position and the staff member occupying it. With ongoing position analysis and
performance appraisal, there are few surprises, and changes in the environment are
quickly incorporated into the official appraisal system.
Job Descriptions:
Job descriptions should be reliable, valid, understandable, and specific enough to provide
direction for staff behavior. Job descriptions should focus on what the staff member does
(e.g. advises the student government association) and what outcomes are expected. These
outcomes should be clearly linked to departmental and institutional objectives and needs.
Job descriptions should use action words such "plans" or "supervises" rather than
"demonstrates initiative" or "is likable." Job descriptions should provide guidelines for
staff so they know the specific behaviors expected to perform. The responsibilities of the
staff member should be listed in order of importance and weighted relative to importance,
if possible.
Participatory and Interactive Appraisal:
Appraisal system processes should be designed in concert with all stakeholders and open
to constant interaction with them. Plans made jointly by staff and administrators have a
better chance of working than plans made independently by either party.
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Workable Formats that Avoid Systemic Bias:
Effective performance appraisal systems must include workable formats that avoid
systematic biases. Checklists of performance criteria completed at the same time every
year should be avoided. This type of approach simply fails to produce any useful
information for individual or organizational improvement.
Other biases include giving preferential treatment to some but not all staff, rating all staff
the same, being overly lenient or overly harsh toward some or all staff, and practicing
conscious or unconscious racial or gender prejudice.
Adopting a format that includes the standards of clarity, openness, and fairness and that
involves more than one appraiser may help to control some of this bias.
ESTABLISHING PERFORMANCE STANDARDS
The first step in the process of performance appraisal is the setting up of the standards
which will be used to as the base to compare the actual performance of the employees.
This step requires setting the criteria to judge the performance of the employees as
successful or unsuccessful and the degrees of their contribution to the organizational
goals and objectives. The standards set should be clear, easily understandable and in
measurable terms. In case the performance of the employee cannot be measured, great
care should be taken to describe the standards.
Communicating the standards:
Once set, it is the responsibility of the management to communicate the standards to all
the employees of the organization. The employees should be informed and the standards
should be clearly explained to the. This will help them to understand their roles and to
know what exactly is expected from them. The standards should also be communicated to
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the appraisers or the evaluators and if required, the standards can also be modified at this
stage itself according to the relevant feedback from the employees or the evaluators.
Measuring the actual performance:
The most difficult part of the performance apprisal process is measuring the actual
performance of the employees that is the work done by the employees during the
specified period of time. It is a continuous process which involves monitoring the
performance throughout the year. This stage requires the careful selection of the
appropriate techniques of measurement, taking care that personal bias does not affect the
outcome of the process and providing assistance rather than interfering in an employees
work.
Compare the actual with desired performance:
The actual performance is compared with the desired or the standard performance. The
comparison tells the deviations in the performance of the employees from the standards
set. The result can show the actual performance being more than the desired performance
or, the actual performance being less than the desired performance depicting a negative
deviation in the organizational performance. It includes recalling, evaluating and analysis
of data related to the employees performance.
Discussing results:
The result of the appraisal is communicated and discussed with the employees on one-to-
one basis. The focus of this discussion is on communication and listening. The results,
the problems and the possible solutions are discussed with the aim of problem solving
and reaching consensus. The feedback should be given with a positive attitude as this can
have an effect on the employees’ future performance. The purpose of the meeting should
be to solve the problems faced and motivate the employees to perform better.
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Decision making:
The last step of the process is to take decisions which can be taken either to improve the
performance of the employees, take the required corrective actions, or the related HR
decisions like rewards, promotions, demotions, transfers etc.
Challenges
In order to make a performance appraisal system effective and successful, an
organization comes across various challenges and problems. The main challenges
involved in the performance appraisal process are:
Determining the evaluation criteria:
Identification of the appraisal criteria is one of the biggest problems faced by the top
management. The performance data to be considered for evaluation should be carefully
selected. For the purpose of evaluation, the criteria selected should be in quantifiable or
measurable terms
Errors in rating and evaluation:
Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait
influencing the evaluator’s rating for all other traits) etc. may creep in the appraisal
process. Therefore the rater should exercise objectivity and fairness in evaluating and
rating the performance of the employee
Lack of competence:
Top management should choose the raters or the evaluators carefully. They should have
the required expertise and the knowledge to decide the criteria accurately. They should
have the experience and the necessary training to carry out the appraisal process
objectively.
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Create a rating instrument:
The purpose of the appraisal process is to judge the performance of the employees rather
than the employee. The focus of the system should be on the development of the
employees of the organization.
Pre-requisites for Effective & Successful Performance Appraisal
The essentials of an effective performance system are as follows:
Documentation:
Means continuous noting and documenting the performance. It also helps the evaluators
to give a proof and the basis of their ratings.
Standards / Goals:
The standards set should be clear, easy to understand, achievable, motivating, time bound
and measurable.
Practical and simple format:
The appraisal format should be simple, clear, fair and objective. Long and complicated
formats are time consuming, difficult to understand, and do not elicit much useful
information.
Evaluation technique:
An appropriate evaluation technique should be selected; the appraisal system should be
performance based and uniform. The criteria for evaluation should be based on
observable and measurable characteristics of the behavior of the employee.
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Communication:
Communication is an indispensable part of the appraisal process. The desired behavior or
the expected results should be communicated to the employees as well as the evaluators.
Communication also plays an important role in the review or feedback meeting. Open
communication system motivates the employees to actively participate in the appraisal
process.
Feedback:
The purpose of the feedback should be developmental rather than judgmental. To
maintain its utility, timely feedback should be provided to the employees and the manner
of giving feedback should be such that it should have a motivating effect on the
employees’ future performance.
Personal Bias:
Interpersonal relationships can influence the evaluation and the decisions in the
performance appraisal process. Therefore, the evaluators should be trained to carry out
the processes of appraisals without personal bias and effectively.
Performance Appraisals as Career Development
Performance appraisal is a part of career development. The latest mantra being followed
by organizations across the world being – “get paid according to what you contribute” –
the focus of the organizations is turning to performance management and specifically to
individual performance. Performance appraisal helps to rate the performance of the
employees and evaluate their contribution towards the organizational goals. Performance
appraisal leads to the recognition of the work done by the employees, many a times by
the means of rewards and appreciation etc. It plays the role of the link between the
organization and the employees’ personal career goals.
Potential appraisal, a part of Performance appraisal, helps to identify the hidden talents
and potential of the individuals. Identifying these potential talents can help in preparing
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the individuals for higher responsibilities and positions in the future. The performance
appraisal process in itself development in nature.
Performance appraisal is also closely linked to other HR processes like helps to identify
the training and development needs, promotions, demotions, changes in the compensation
etc. A feedback communicated in a positive manner goes a long way to motivate the
employees and helps to identify individual career developmental plans. Based on the
evaluation, employees can develop their career goals, achieve new levels of competencies
and chart their career progression. Performance appraisal encourages employees to
reinforce their strengths and overcome their weaknesses.
Approaches to Performance Development
Performance appraisal - Traditional approach
Traditionally, performance appraisal has been used as just a method for determining and
justifying the salaries of the employees. Than it began to be used a tool for determining
rewards (a rise in the pay) and punishments (a cut in the pay) for the past performance of
the employees.
This approach was a past oriented approach which focused only on the past performance
of the employees i.e. during a past specified period of time. This approach did not
consider the developmental aspects of the employee performance i.e. his training and
development needs or career developmental possibilities. The primary concern of the
traditional approach is to judge the performance of the organization as a whole by the
past performances of its employees
Therefore, this approach is also called as the overall approach. In 1950s the performance
appraisal was recognized as a complete system in itself and the Modern Approach to
performance appraisal was developed.
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Performance appraisal - Modern approach
The modern approach to performance development has made the performance appraisal
process more formal and structured. Now, the performance appraisal is taken as a tool to
identify better performing employees from others, employees’ training needs, career
development paths, rewards and bonuses and their promotions to the next levels.
Appraisals have become a continuous and periodic activity in the organizations. The
results of performance appraisals are used to take various other HR decisions like
promotions, demotions, transfers, training and development, reward outcomes. The
modern approach to performance.
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Techniques of Performance Appraisal
The various methods and techniques used for Performance appraisal can be categorized
as the following traditional and modern methods:
TABLE-1.1:-Techniques of performance appraisal
Traditional Methods
Modern Methods
1.Essay appraisal method 1.Assessment method
2. Straight ranking method 2.Behaviorally anchored rating scale
method(BARS)
3.Paired comparison method 3.Human asset accounting method
4.Critical incidents method 4.360 degree performance appraisal
method
5.Field review method 5.Appraisal by results / management by
objective(MBO)
6.Check list method
7.Graphic Rating scale method
8.Forced distribution method
9.Grading method
10.Forced choice distribution method
11.Group appraisal method
12.Man to man comparison method
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Traditional Methods of Performance Appraisal
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 evaluator.
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.
Paired comparison:
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.
Critical incidents methods:
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 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.
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 superior’s personal bias.
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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.
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.
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.
Grading method
Under this method .the rater considers certain features and marks them accordingly to a
scale. Certain categories of worth are first established and carefully defined. The selected
features may be analytical ability, cooperativeness, and dependability. Self-expression,
job knowledge, judgment, and organizing ability etc.They may be
A: out standing
B: very good
C: good/average
D: fair
E: poor/very poor
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Forced choice distribution method:
This method was evolving after a great deal of research conducted for the military
services during world war ll. It attempts to correct a rater’s tendency to give consistently
high or consistently low ratings to all the employees. The use of this method calls for
objective reporting and minimum subjective judgment.
Group appraisal method:
Under this method, an appraisal group rates employees, consisting of their supervisor and
three or four other supervisor who have some knowledge of their performance. The
advantage of this method is that it is through, very simple and is devoid of any bias, for it
involves multiple judges, but it is very time-consuming.
Man-to-man comparison method:
By this method each employee is compared every trait with all other persons in pairs one
at a time. With this technique, judgment is easier and similar than with the ordinary
ranking method. This method is not suitable when a group is large because, in that case
the number of judgment becomes excessively large.
Demerits of Traditional techniques:
Many of the above traditional performance evaluation techniques have internal
weakeness.For example,
Managers generally are not qualified to assess personality traits, and most
managers are even not properly trained to conduct evaluation and performance
interviews.
Some managers discourage good performance by over emphasizing shortcomings
and almost neglecting good work.
Rater’s personality also plays an important part in the effectiveness of evaluation
programmes.
The relative status of raters in their organization is a factor that is important to the
validity of performance appraisal.
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Modern-Method
Assessment centers:
An assessment centre 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.
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 qualities as good or bad (for e.g. the qualities like
inter-personal relationships, adaptability and reliability, job knowledge etc).
Human resource accounting method.
Human resources are valuable assets for every organization. Human resource accounting
method tries to find the relative worth of these assets in the terms of money. In this
method the Performance of the employees is judged in terms of cost and contribution of
the employees. The cost of employees include all the expenses incurred on them like their
compensation, recruitment and selection costs, induction and training costs etc whereas
their contribution includes the total value added (in monetary terms). The difference
between the cost and the contribution will be the performance of the employees. Ideally,
the contribution of the employees should be greater than the cost incurred on them.
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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 components:
1. Self appraisal
2. Superior appraisal
3. Subordinate appraisal
4. Peers appraisal
Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses,
his achievements, and judge his own performance. Superior’s appraisal forms the
traditional part of the 360 degree appraisal where the employees’ responsibilities and
actual Performance is rated by superior.
Subordinates appraisal gives a chance to judge the employee on the parameters like
communication and motivating abilities, superior’s ability to delegate the work,
leadership qualities etc. Also known as internal customers, the correct feedback given by
peers can help to find employees’ abilities to work in a team, co-operation and sensitivity
towards others. Self assessment is an indispensable part of 360 degree appraisals and
therefore 360 degree Performance has high employee involvement and also have the
strongest impact on behavior and performance. It provides a "360-degree review" of the
employees’ performance and is considered to be one of the most credible performance
appraisal method.
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360 degree appraisal is also a powerful developmental tool because when conducted at
regular intervals (say yearly) it helps to keep a track of the changes others’ perceptions
about the employees. A 360 degree appraisal is generally found more suitable for the
managers as it helps to assess their leadership and managing styles. This technique is
being effectively used across the globe for performance appraisals. Some of the
organizations following it are Wipro, Infosys, and Reliance Industries etc.
MBO method:
MBO has an objective in itself. The objective is to change behavior and attitudes towards
getting the job done. In other words, it is result oriented, it is performance that counts.
Set organizational goals, i.e., establishment of an organizational-wide strategy and
goals.
Joint goal setting. i.e., establishment of short-term performance targets between
the management and the subordinate in a conference between them.
Performance reviews, i.e. frequent performance review meetings between the
managers and subordinate.
Set check posts i.e. establishment of major check post measure progress.
Feedback : the employees who receives frequent feedback concerning their
performance are more highly motivated then those who do not feedback that is
specific, relevant and timely helps satisfy the need most people fell about
knowing where they stand.
Importance and purpose of performance appraisal:
A performance appraisal program (PA program) is important to employees’ professional
development, to meeting the companies or firm’s goals or objectives and, ultimately, to
contributing to the company’s or firms bottom line. No employer, whether a small CPA
firm, a Big Four firm, a nonprofit organization, a government institution or a private or
public company, should be exempt from having a formal PA program. Other benefits that
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could be derived from having a PA program include enhanced communications, an
opportunity to effectively address performance problems, and improved employee
morale.
Before creating a PA program, there are several factors to consider. The employer should
first determine the objectives for the program. Second, the employer should develop a
plan and timeframe for launching the program. Finally, the employer should prepare for
any obstacles that might appear, and regularly consider ways to improve the program.
Purpose
The primary reason for having a PA program is to monitor employees’ performance,
motivate staff and improve company morale. Monitoring employee performance requires
routine documentation, which is accomplished through completing a performance
appraisal form. When employees are aware that the company is mindful of their
performance and that they could be rewarded with merit increases and promotions, they
are motivated to work harder. Morale is improved when employees receive recognition or
reward for their work
An effective PA program will assist the company in achieving its goals and objectives.
Not only will training needs be identified and addressed during a PA review, but hidden
talent can be discovered as well. Through identifying these training needs, staff can
perform their jobs at the highest level and be in a better position to address clients’,
members’ and customers’ concerns and questions. A well-developed staff is more likely
to be proactive, productive and resourceful, all of which helps give the company a
competitive edge, from improved customer relations to increased profits.
PROBLEM IN PERFORMANCE APPRAISAL:-
The problem with subjective measure is the rating which is not verifiable by others and
has the opportunity for bias. The rate biases include: (a) halo effect (b) the error of central
tendency, (c) the leniency and strictness biases (d) personal prejudice, and (e) the recent
performance effect.
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Halo Effect:
It is the tendency of the raters to depend excessively on the rating of one trait or
behavioral consideration in rating all others traits or behavioral considerations. One way
of minimizing the halo effect is appraising all the employees by one trait before going to
rate on the basis of another trait.
The error of Central Tendency:
Some raters follow play safe policy in rating by rating all the employees around the
middle point of the rating scale and they avoid rating the people at both the extremes of
the scale. They follow play safe policy because of answerability to management or lack
of knowledge about the job and person he is rating or least interest in his job.
The Leniency and Strictness:
The leniency bias crops when some raters have a tendency to be liberal in their rating by
assigning higher rates consistently. Such ratings do not serve any purpose. Equally
damaging one is assigning consistently low rates.
Personal Prejudice:
If the rater dislikes any employee or any group, he may rate them at the lower end, which
may distort the rating purpose and affect the career of these employees.
The Recent performance Effect:
The raters generally remember the recent actions, of the employee at the time of rating
and rate on the basis of these recent actions favorable or unfavorable than on the whole
activities.
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Other factors that are considered as problems are
Less reliability and validity of the performance appraisal techniques
Negative ratings affect interpersonal relations and industrial relations system.
Influence of external environmental factors and uncontrollable internal factors
Feedback and post appraisal interview may have a setback on production
Management emphasizes on punishment rather than development of an employee
in performance appraisal.
Performance counseling
Performance Counseling is especially important when an employee exhibits poor work
performance, poor work habits, or unsatisfactory conduct. Supervisors can solve most
work performance or behavioral problems by appropriately counseling an employee.
When a supervisor recognizes need to address a work performance or behavioral
problem, he or she should consider the following:
Have a confidential meeting with the employee to discuss the performance issue.
Outline the problem and explain how it affects department operations …explain
how the employee's actions fail to meet performance expectations.
Provide the employee an opportunity to explain his or her behavior.
Clearly outline what the employee is expected to do and how he or she is expected
to perform.
Clearly outline the consequences of a failure to resolve the problem.
Establish a timeline for improving performance/behavior.
Give the employee a written summary of the confidential meeting, including the
performance improvement plan.
Offer reasonable support for a successful outcome.
Follow up with the employee, as appropriate, to determine if the situation is required
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Serious Conduct Problems
More serious conduct problems could require a supervisor to impose stronger and
immediate corrective action than counseling, including, but not limited to removing the
employee from the workplace. For instance, if an employee's conduct is considered a
threat to the health and safety of other employees, a supervisor should impose the
corrective measure and contact the Employee Relations Division as soon as possible.
Counseling Employees about Performance Problems
Additional guidance is presented below on preparing for and conducting counseling
sessions.
Preparing for a Counseling Session
Once you recognize that a performance problem exists, find out about what
guidance the employee has been given on performance. Nine times out of ten, that
guidance exists only in performance standards that were issued early. But you
may also have some applicable operating manuals or guides, so take a look at
everything.
Read the performance standards. If they don't really describe what you want from
the employee, take the time to fix them. If your organization uses generic
standards that cannot be modified, think through the types of things that you will
say to the employee to further explain what it is you expect. Write these notes
down.
Even though you may never need to go any further than an oral counseling
session to get this employee to improve, take the time to contact the human
resources office and find out what your technical advisor would say if you do
need to take formal action later. Ask that specialist to review the performance
standards to ensure that there aren't any problems with them.
If you do have operating manuals, guides, or other tools that all employees use,
take a look at them and see how these could be used to help the employee
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improve. Try to read them as objectively as possible to look for areas that may not
be clear. Remember, you know this job (probably better than almost everybody
else), but there is some part of the job that is not making sense or becoming clear
to this employee. If you have to, break it down into parts and explain it from the
bottom up.
Remember your goal is to improve the employee's performance, not to win an
argument with the employee. To prepare for a counseling session with an
employee, write out and then practice saying what acceptable performance in the
job would mean. Listen to yourself. If it doesn't make any sense to you, it won't
make any sense to the employee. Be as specific as possible.
Have some specific examples of poor performance in your mind (or your notes)
so that you can respond to the inevitable, "What do you mean?" Do not emphasize
past poor performance, though; instead, seek to clarify future good performance.
Conducting the Counseling Session
In scheduling a meeting to discuss a performance issue, make sure you allow
adequate time for your comments and any feedback from the employee.
Whenever possible, conduct the meeting in a private place where the employee
will not be embarrassed if the conversation is overheard by coworkers.
Choose your time based on your knowledge of the employee. Is this someone who
needs to have a meeting like this on Friday so he or she can sort things out over
the weekend? Or is this a person who will feel like you are dumping on him or her
and then leaving no opportunity to respond for 2 days? Use the same thought
process for deciding how information is best given. Although you will be meeting
to have a discussion, would this employee like to read through some written notes
before talking? Would a verbal discussion with a commitment to follow up with
something in writing be more in the style of the employee?
Set and maintain a constructive tone: be calm, professional, and focused.
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Seek cooperation, not confrontation, by focusing on how the employee's
performance fits into the performance of the total organization.
Unless you think the employee will attempt to take control of the discussion,
choose several points throughout your comments where you can stop and get
confirmation from the employee that he or she understands the problems and your
expectations. Providing opportunities for him or her to respond will allow the
employee to be active in the discussion and may lessen the negative connotation
of a "lecture" from the boss.
At the conclusion of the meeting, end on a positive note by emphasizing that
improving the employee's performance is a mutually beneficial goal. Offer a
written summary then or to be given to the employee later. Having a written
summary is particularly valuable if you will be trying something new or changing
any work assignment routine.
Keep notes for yourself documenting the date of the discussion and any specific
agreements you reached with the employee regarding changes to the way work is
assigned or structured.
Follow up! If the employee shows improvement, let him or her know it
immediately! If the employee appears to be still struggling, go back and talk
again.
Components of appraisal evaluation:
“WHO”of the appraisal?
The appraisal can be accomplished by one or more individuals involving a combination
of the immediate supervisor, other managers acquainted with the assesses work, a higher
level manager, a personal manager, the assesses peers, the assesses himself and the
assesses subordinates.
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“WHAT” of appraisal?
The WHAT of the performance appraisal consists in appraising non supervisory
employees for their current performance and managers for future potential, It also
includes evaluation of human traits.
“WHY” of appraisal?
The why of an appraisal is concerned with?
Creating and maintaining a satisfactory level of performance of employees in their
present jobs.
Highlighting employee’s needs and opportunities for personnel growth and
development.
Aiding in decision making for promotions ,transfers, lay –offs and discharges
Promoting understanding between the supervisor and his subordinates.
Providing useful criteria for determining the validity of selection and training
methods and techniques and forming concrete measures for attracting individual
of higher caliber to the enterprise.
What should be rated?
The seven criteria for assessing performance are:
Quality:
The degree to which the process or result of carrying out an activity approaches
perfection.
Quantity:
The amount produced, expressed in monetary terms, number of units or number of
completed activity cycles.
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Timeliness:
The degree to which an activity or result produced.
Cost effectiveness:
The degree to which the use of the organization resources (human, monetary,
technology, material) is maximized
Need for supervision:
The degree to which a job performer can carry out a job function with supervisory
assistance.
Interpersonal impact:
The degree to which a performer promotes feelings of self esteem, good will and co-
operation among co-workers and subordinates.
Training:
Need for training for improving employee skills knowledge.
The above criteria relate to past performance and behavior of an employee. There is also
the need for assessing the potential of an employee for future performance. Particularly
when the employee is tipped for assuming greater responsibilities.
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CHAPTER -2
RESEARCH METHODOLOGY
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INTRODUCTION
Appraising the performance of individuals, groups and organization is a common practice
of al societies. While in some instances these appraisal processes are structured and
formally sanctioned, in other instances they are an informal and integral part of daily life.
A performance is a process of evaluating an employee’s performance of a job in terms of
its qualification .It is a process of judging the values, qualities, excellence, qualities or
status of some object, person or thing.
Performance appraisal is the process of obtaining, analyzing and recording information
about the relative worth of an employee. The focus of the performance appraisal is
measuring and improving the actual performance of the employee and also the future
potential of the employee. Its aim is to measure what an employee does.
According to Flipper, “a prominent personality in the field of Human resources,
“performance appraisal is the systematic, periodic and an impartial rating of an
employee’s excellence in the matters pertaining to his present job and his potential for a
better job." Performance appraisal is a systematic way of reviewing and assessing the
performance of an employee during a given period of time and planning for his future”.
A performance appraisal is a systematic and periodic process that assesses an individual
employee’s job performance and productivity in relation to certain pre-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 PA 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.
The process by which a manager or consultant (1) examines and evaluates an employee’s
work behavior by comparing it with present standards, (2) documents the results of the
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comparisons and (3)uses the results to provide feedback to the employee to show where
improvements are needed and why. Performance appraisals are employed to determine
who needs to determine who needs what training, and who will be promoted, demoted,
retained, or fired.
Historically, PA has been conducted annually (long-cycle appraisals); however, many
companies are moving towards shorter cycles (every six months, every quarter), and
some have been moving into short-cycle (weekly, bi-weekly) performance appraisal.
The interview could function as "providing feedback to employees, counseling and
developing employees, and conveying and discussing compensation, job status, or
disciplinary decisions". PA is often included in performance management systems. PA
helps the subordinate answer two key questions: first, "What are your expectations of
me?" second, "How am I doing to meet your expectations?"
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RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. In it,
step-by-step Research Methodology is a way to systematically solve the research
problem. In it, step-by-step methods are followed to solve a particular problem. It
refers to a search for knowledge. It can also be defined as a scientific and
systematic search for pertinent information on a specific topic. In fact, research is
an art of scientific investigation.
The methodology adopted for the present study was focus discussion, interview
and close observation through in-house study. Since the project is based on action
research it was necessary to build rapport to collect maximum information from
the Customers. Hence the research spent considerable time with the people who
reside in city. The main focus was to do with the assessing the satisfaction level of
customer and explore the possibility of more sound arrangement of disseminating
outlook information system.
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METHODOLOGY TOOLS OF DATA
DATA SOURCES:
Primary data:
Primary data is the new or fresh data collected from the respondents through direct
interview using a pre-structured questionnaire.
Personal interview
Close observation
Secondary data:
Secondary data may be obtained from many sources, including literature, industry
surveys, compilations from computerized databases and information systems, and
computerized information.
Secondary data of this project is collected by following method-
Internet
Books
Company website.
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Study or sampling design
Data Collection Instrument: Structured questionnaire
Sample size: 50
Sampling technique: Simple random sampling
Study area: Bangalore
Study period: 4 weeks
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SCOPE OF THE STUDY
The study involves employee’s satisfaction on various dimensions. This study was
carried out at Medicon Leather pvt ltd Bangalore. The study of the report is limited to
Bommanahali branch.
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LIMITATIONS OF THE STUDY
The results of the study cannot to be generalized as the data collected for the
study limited to Bangalore only.
The accuracy of the analyses and conclusion drawn entirely depends upon the
reliability of the information provided by the employees.
Time is the biggest constraint because the study period is just four weeks.
In the fast moving/changing employees behavior many new and better things
may emerge in the near future. Which cannot be safeguard in this report?
Respondent attitude may change time to time.
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NEED FOR THE STUDY
Today’s business environment is highly competitive. Because of the sweeping effects of
change and competition, a great deal of importance has been placed on performance
management. In order to survive in today’s competitive world, to create a better place in
work organizations must have effective performance measures & process.
An organization performance & resulting productivity are directly proportional to the
quality of its training given. Training increases productivity & improves the quality of
work & morale. In order to improve the technical managerial & behavioral skills of
employees, training practices are adopted.
Every organization has its own practices to train its human resource, so a study was
conducted to find the strategies of performance management followed in Medicon
Leather Pvt Ltd.
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OBJECTIVES OF THE STUDY
To enable an organization to maintain an inventory of the number and quality of
all the managers and to identify their training needs and aspirations.
To determine increments, rewards and positive a reliable index for promotions
and transfers to positions of greater responsibility.
To maintain individual and group developmental informing the employee of his
performance standards.
To suggest ways of improving the employee performance.
To identify the training and development needs.
To plan career development, human resource planning based on potentials.
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CHAPTER-3
COMPANY PROFILE
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INDUSTRY PROFILE
KMB Lifestyle
KMB life style was founded in 1988 as a manufacturing company catering to India’s
watch strap market. In a short while, KMB lifestyle rose to become India’s largest
producer of leather watch bands for OEMs. Found the brand, BULCHEE a Leather
accessory retailer through premium retail and well-known department stores. And retail
accessories of the Madura Group of Brands; Allen Solly, Louis Philippe and Van Heusen.
Today, KMBs expertise and strong merchandising knowledge of the Indian market has
led to the successful launch of a new, omnichannel retail fashion brand, COVO. A
bespoke fine diamond jewelry atelier, Clover. KMB Lifestyle continues to be a leader
today in innovating through distribution, brand and retail in the Indian market.
Bulchee, the premium accessories brand and one of the most dominant brands in the
multi brand stores like Shoppers stop, Lifestyle, Central, and landmark, is now
aggressively looking at opening its own branded retail stores. Recently, they opened an
exclusive store in form value mall Bangalore taking the count of their EBOs to five .
Bulchee is also looking at a brand extension and coming up with products aimed at 20-
25yrs old . they came with brand extension for youth in oct2010 . main products are belts,
wallets , ladies hang bags, the latest addition to their line is pure silk ties .
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Bulchee Leather ware Pvt Ltd is a Private company incorporated on 07 June 1991. It is
classified as Indian Non-Government Company and is registered at Registrar of
companies, Mumbai.
Its authorized share capital is Rs. 500,000 and its paid up capital is Rs. 200,000. It is
involved in Tanning and dressing of leather, manufacture of luggage, handbags, wallet
etc…
The brand as been sourcing their designs and technologies for Italy and as tied up with
traditional crafts man around Italy . in the north Bulchee is well establish in Ludhiana
Amritsar jalandar .along with retail expansion , the brand is also looking at expanding its
port folio. In pipe line are cuff links socks, hand keens, and fashion jewellery. The brand,
which is doing well in Maharashtra with its presence in 38large departmental stores and
40metro shoes stores is now opening stand alone stores in ghatkopar and kandivali in
Mumbai.
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Bulchee product line.
Wallet:
WATCH STRAP:
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HAND BAG/PURSE
BELT
Apart from the organic growth of bulchee stores across India, the company is looking at
expanding its retail portfolio with a mix of international brands in the accessory space.
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COMPANY PROFILE
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Organization: Medicon Leather Pvt.Ltd.
Year of establishment: 1987
Managing Director: Mr. Neeta Sangieve Bulchandani.
Number of employees: 300
Quality Certification: ISO 9002
An ISO 9002 certified company, Medicon is among a handful of companies capable of
integrated manufacturing from processing of leather to product specifications and
international styling.
With its versatility in design prompted with a tool room equipped with a 3D machining
center and capable technical designers coordinating with our fashion designers ensure
you get a Medicon product of quality with contemporary design.
Medicon has built its expertise in end to end customer service, from brief to product
development and order to timely deliver through its online tracking system developed in
house.
Always keeping in mind the rapid change required by the market through studies on
international trends at important trade fairs, our team works closely with customers,
crafting to specification and fashion to realize the possible.
Most importantly, medicon has strong sourcing practice to support its quality and timely
delivery goals. These relationships forged over a decade form the foundation that enables
Medicon to achieve flexibility in its manufacturing programs that is so important in
today’s commercial environment.
This brings about a melting pot of the right elements of creativity, sourcing, quality and
cost focus driven by appropriate information systems enabling Medicon to delivery world
class products at sensible prices.
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PRODUCT LINE
Medicon Pvt.Ltd. company deals in producing leather products or goods to
its customer .
Leather goods
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Hand bags
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Wallets
Waist Belts
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Watch straps
Production capacity
Wallets: 9,000pcs./Month
Belts: 45,000pcs./Month
Watch Straps: 1,80,000pcs./Month
Leather Handbags: 3,000pcs./Month
PU Handbags: 2,000pcs./Month
This is the production capacity of Medicon Leather Pvt.Ltd. Company in producing or
manufacturing the products per month. This is the normal value in producing the products
per month but the production capacity varies according to the demand and the contract
between its customers as it deals with most reputed and branded company were the
production capacity may increase.
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Major customers
India’s largest leather watch band unit with an excellent relationship with leaders in the
watch industry, both National and International.
Most of the products are sold through online websites such as Flipkart, Amazon
etc….These are the online sites which displays the product of the company.
The major customers for the watch parts are Titan, Timex, Wester, Shivaki and HMT.
These are the companies which are well known and reputed companies having a brand
name and goodwill nationwide, who are the customers of Medicon Leather Company.
This company also markets its accessories with other companies known for its Quality,
Brand and Goodwill. These companies are reputed and have craze among the youngsters
and other age group people.
Medicon Leather Company not only has its customers National wide but also exports its
product in International.
Medicon Leather products are not only popular in India but also in International.
Major Customers: Indian/Overseas:
Watch Parts: Titan, Timex, Wester, Shivaki and HMT
Accessories: Titan-Fastrack, Arrow, Lee, Allen Solly, Park Avenue, Benetton,
Ripcurl.
Exports to : HK, UAE
Major items of export: Leather goods, Watch parts.
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COMPANY MISSION AND VISSION
VISION:
Completion of all pending projects funded by company.
Establishment and up gradation of technology.
Introduction of new models according to trend.
Medicon Leather Company shall deliver Everything, Everywhere, Every time for
every customer in the most profitable manner.
MISSION:
We will be the trendsetters in evolving delivery formats, making consumption
affordable for all customers segments for classes and for masses.
We shall infuse Indian brands with confidence and renewed ambition.
We shall be efficient, cost-conscious and committed to quality in whatever we do.
We shall ensure that our positive attitude, sincerity. Humility and united
determination shall be the driving force to make us successful.
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SWOT ANALYSIS
Strengths:
Medicon Leather pvt ltd has effective and hard working personnel to carry
the activities of organization.
Medicon Leather pvt ltd has flexible plans, which can make the corporation
more professional.
Weakness:
High cost structure.
Inability to adopt the latest technique.
Opportunities:
Changing attitude of people towards westernization and trends
People have high income, so they are ready to spend on leather products.
Threats:
High competition with private companies.
People are attracted towards other company products due to innovation
according to trend.
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CHAPTER- IV
DATA ANALYSIS & INTERPRETATION
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DATA ANALYSIS AND INTERPRETATION
1) Method of performance appraisal
Table-4.1: Method of performance appraisal.
Options No. of respondents
% of responses
Merit 15 30%
Grading 30 60%
Other 5 10%
TOTAL 50 100%
Graph:-4.1:-Awareness about Annual confidential report.
INTERPRETATION:-
1. 30% of the respondents agreed that Merit method of PA is applied.
2. 60% of the respondents agreed that grading method of PA is applied.
3. 10% of the respondents agreed that other method of PA is applied.
15
30
5
0
5
10
15
20
25
30
35
Merit Grading Other
No. of respondents
No. of respondents
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2. PA to set and achieve meaningful goals
Table-4.2: Criteria to set and achieve meaningful goals.
Option No. of respondents
% of responses
Yes 35 70%
No 15 30%
Total 50 100%
Graph:-4.2:- Criteria to set and achieve meaningful goals.
INTERPRETATION:-
1. 70% of respondents agreed it will help to set and achieve goals.
2. 30% of respondents disagreed it won’t help to set and achieve goals.
35
15
0
5
10
15
20
25
30
35
40
Yes No
No. of respondents
No. of respondents
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3. Performance appraisal successful in identifying abilities.
Table-4.3: Identifying employee abilities through performance appraisal
Options No. of respondents
% of responses
Yes 35 70%
No 15 30%
TOTAL 50 100%
Graph:-4.3:- Identifying employee abilities through performance appraisal
INTERPRETATION:-
1. 70% of the respondents agreed that recent performance appraisal identify their
abilities.
2. 20% of the respondents agreed that recent performance appraisal not identify their
abilities.
30
15
0
5
10
15
20
25
30
35
40
Yes No
No. of respondents
No. of respondents
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4) Participation in performance counseling session.
Table-4.4: Employee participation during performance counseling session.
Options No. of respondents
% of responses
Reporting officer 10 20%
Myself 18 36%
Both equally 22 44%
Total 50 100%
Graph:-4.4:- Employee participation during performance counseling session.
INTERPRETATION:-
1. 20% of the respondents agreed that the repotting officer talked more during
performance counseling session.
2. 36% of the respondents agreed that they would be talked more during
performance counseling session.
3. 44% of the respondents agreed that both the repotting officer & them talked more
during performance counseling session.
10
18
22
0
5
10
15
20
25
Reportingofficer
Myself Both equally
No. of respondents
No. of respondents
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5. Performance appraisal process supports culture and values
Table-4.5 PA process supports culture and values.
Options No. of respondents
% of responses
Yes 32 64%
No 18 36%
Total 50 100%
Graph:-4.5. PA process supports culture and values.
INTERPRETATION:-
1. 64% of the respondents agreed that with performance appraisal it supports culture
and values
2. 36% of the respondents not agreed that with performance appraisal it supports
culture and values
32
18
0
5
10
15
20
25
30
35
Yes No
No. of respondents
No. of respondents
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6. Purpose of Performance appraisal.
Table-4.6: Purpose of performance appraisal in Medicon leather pvt.ltd.
Options No. of respondents
% of responses
Promotions 20 40%
Increments 10 20%
Career development 16 32%
Training 4 8%
TOTAL 50 100%
Graph:-4.6: Purpose of performance appraisal in Medicon leather pvt.ltd
INTERPRETATION:-
1. 40% of the respondents agreed that the performance appraisal is for promotions
purpose.
2. 20% of the respondents agreed that the performance appraisal is for increments
purpose.
3. 32% of the respondents agreed that the performance appraisal is for career
development. Purpose.
4. 8% of the respondents agreed that the performance appraisal is for training
purpose.
20
10
16
4
0
5
10
15
20
25
PromotionsIncrementsCareer developmentTraining
No. of respondents
No. of respondents
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7. Performance appraisal process helps to raise organizational output.
Table-4.7: Performance appraisal process helps to raise organizational output.
Options No. of respondents
% of responses
Yes 37 74%
No 13 26%
Total 50 100
Graph:-4.7:- Performance appraisal process helps to raise organizational output.
INTERPRETATION:-
1. 74% respondents agree Performance appraisal process helps to raise organizational
output.
2. 26% respondents disagree performance appraisal process helps to raise organizational
output.
37
13
0
5
10
15
20
25
30
35
40
Yes No
No. of respondents
No. of respondents
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8 .Area of performance rated.
Table-4.8: Area of performance rated.
Options No. of respondents
% of responses
The main areas of work
assigned
23 46%
Individual general qualities 13 26%
Both 14 28%
TOTAL 50 100%
Graph:-4.8:- Area of performance rated.
INTERPRETATION:-
1. 46% Respondents agrees the area of performance rated according to the main areas of
work assigned.
2. 26% Respondents agrees the area of performance rated according to individual
qualities.
3. 28% Respondents agrees both.
23
13 14
0
5
10
15
20
25
The mainareas of work
assigned
Individualgeneralqualities
Both
No. of respondents
No. of respondents
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9. Express of difficulties and problems regarding Key Performance Area.
Table-4.9: Express of difficulties and problems regarding KPA
Options No. of respondents
% of responses
Yes, all difficulties without
any problems.
18 36%
Most of them 13 26%
Only a few of them 16 32%
Not at all 3 6%
Total 50 100%
Graph:-4.9:- Express of difficulties and problems regarding KPA
INTERPRETATION:-
1. 36% Respondents agrees they express all difficulties without any problems regarding
KPA.
2. 26% Respondents agrees most of the problems and difficulties are expressed regarding
KPA.
3. 32% Respondents agrees only a few of the problems and difficulties are expressed
regarding KPA.
4. 6% Respondents they not at all express difficulties and problems regarding KPA.
18
13
16
3
02468
101214161820
Yes, alldifficulties
withoutany
problems.
Most ofthem
Only a fewof them
Not at all
No. of respondents
No. of respondents
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10. Performance appraisal method or technique.
Table-4.10: Methods of performance appraisal followed in Medicon Leather pvt.ltd.
Options No. of respondents
% of responses
Behaviorally anchored
rating scales[BARS]
18 36%
360 degree PA 24 48%
Assessment centre 03 6%
Management by objective 05 10%
TOTAL 50 100%
Graph:-4.10:- Methods of performance appraisal followed in Medicon Leather
pvt.ltd.
INTERPRETATION:-
1. 36% Respondents agrees behaviorally anchored rating scales method is followed.
2. 48% Respondents agrees 360 degree PA is followed.
3. 6% Respondents agrees assessment centre is followed.
4. 10% Respondents agrees MBO is followed.
18
24
35
0
5
10
15
20
25
30
Behaviorally anchored rating scales[BARS]360 degree PAAssessment centreManagement by objective
No. of respondents
No. of respondents
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11. Performance rate of employees
Table-4.11: Employees performance rate.
Options No. of respondents
% of responses
Excellent 18 36%
Satisfied 32 64%
Dissatisfied 0 0%
No comments 0 0%
TOTAL 50 100%
Graph:-4.11:- Performance rate of employees
INTERPRETATION:-
1. 36% Respondents agrees their performance rate is excellent.
2. 64% Respondents agrees their performance rate is Satisfied.
18
32
0 00
5
10
15
20
25
30
35
Excellent Satisfied DissatisfiedNo comments
No. of respondents
No. of respondents
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12. Constructive feedback of performance
Table-4.12: Constructive feedback of performance
Options No. of respondents
% of responses
Yes 38 76%
No 12 24%
TOTAL 50 100%
Graph:-4.12. Constructive feedback of performance
INTERPRETATION:-
1. 76% Responders agrees they get constructive feedback about their performance.
2. 24% Responders doesn’t agree they get constructive feedback.
38
12
0
5
10
15
20
25
30
35
40
Yes No
No. of respondents
No. of respondents
A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL
SILICON CITY COLLEGE OF MANAGEMENT AND COMMERCE Page 64
13. Promotion system in Medicon leather pvt.ltd.
Table-4.13: Promotion system in Medicon leather pvt.ltd.
Options No. of respondents
% of responses
Merit 33 66%
Seniority 8 16%
Both 9 18%
TOTAL 50 100%
Graph:-4.13: Promotion system in Medicon leather pvt.ltd.
INTERPRETATION:
1. 66% Responders agrees promotional system is on merit basis.
2. 16%Responders agrees promotional system is on seniority basis.
3. 9% Responders agrees promotional system is on both basis.
33
8 9
0
5
10
15
20
25
30
35
Merit Seniority Both
No. of respondents
No. of respondents
A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL
SILICON CITY COLLEGE OF MANAGEMENT AND COMMERCE Page 65
14. Employees opinion on job rotation.
Table-4.14: Employees opinion on job rotation.
Options No. of respondents
% of responses
Yes 32 64%
No 18 36%
TOTAL 50 100%
Graph:-4.14: Employees opinion on job rotation.
INTERPRETATION:-
1. 64% Responders agrees on job rotation.
2. 36%Responders doesn’t agree on job rotation.
32
18
0
5
10
15
20
25
30
35
Yes No
No. of respondents
No. of respondents
A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL
SILICON CITY COLLEGE OF MANAGEMENT AND COMMERCE Page 66
15. Factors of performance evaluated.
Table-4.15: Performance evaluation
Options No. Of respondents
% of responses
Job knowledge 7 14%
Quantity of work 3 6%
Punctuality 8 16%
Customer
contact
4 8%
All 28 56%
TOTAL 50 100%
Graph:-4.15:- Performance evaluation.
INTERPRETATION:
1. 56%Responders agrees performance evaluation is on Job knowledge, Quantity of
work, Punctuality, Customer contact and all.
2. 14% Responders agree on job knowledge.
3. 6% Responders agree on Quality of work.
4. 16% Responders agree on Punctuality.
5. 8% Responders agree on Customer contact.
7
3
8
4
28
0
5
10
15
20
25
30
No. Of respondents
No. Of respondents
A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL
SILICON CITY COLLEGE OF MANAGEMENT AND COMMERCE Page 67
16. Employees opinion on Performance Appraisal.
Table-4.16: Employee opinion on PA
Options No. of respondents
% of responses
True reflection of our
performance
20 40%
Influenced appraisal
opinion
22 44%
Always away from reality 8 16%
TOTAL 50 100%
Graph:-4.16: Employee opinion on PA
INTERPRETATION:-
1. 44% Responders agrees on influenced appraisal opinion.
2. 40% Responders agrees on true reflection of performance.
3. 16% Responders agrees on always away from reality.
2022
8
0
5
10
15
20
25
Truereflection of
ourperformance
Influencedappraisalopinion
Always awayfrom reality
No. of respondents
No. of respondents
A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL
SILICON CITY COLLEGE OF MANAGEMENT AND COMMERCE Page 68
17. Employees being appraised during working period.
Table-4.17: Employees being appraised during working period.
Options No. Of respondents
% of responses
Yes 43 86%
No 7 14%
TOTAL 50 100%
Graph:-4.17:- : Employees being appraised during working period.
INTERPRETATION:-
1. 86% Responders agrees on being appraised.
2. 14% Responders agrees being not appraised.
43
7
0
5
10
15
20
25
30
35
40
45
50
Yes No
No. Of respondents
No. Of respondents
A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL
SILICON CITY COLLEGE OF MANAGEMENT AND COMMERCE Page 69
18. Change after appraising performance.
Table-4.18: Change after appraising performance.
Options No. of respondents
% of responses
Yes 32 70%
No 18 36%
TOTAL 50 100%
Graph:-4.18: Change after appraising performance.
INTERPRETATION:-
1. 70% Responders agrees being changed after appraising performance.
2. 36% Responders agrees not being changed after appraising performance.
32
18
0
5
10
15
20
25
30
35
Yes No
No. of respondents
No. of respondents
A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL
SILICON CITY COLLEGE OF MANAGEMENT AND COMMERCE Page 70
19. Transfer, Demotion, Suspension and Dismissal is based on PA
Table-4.19: Transfer, Demotion, Suspension and Dismissal is based on PA
Options No. of respondents
% of responses
Yes 43 86%
No 7 14%
TOTAL 50 100
Graph:-4.19:- . Transfer, Demotion, Suspension and Dismissal is based on PA
INTERPRETATION:-
1. 86% Responders agrees Transfer, Demotion, Suspension and Dismissal is based on
PA.
2. 14% Responders doesn’t agrees Transfer, Demotion, Suspension and Dismissal is
based on PA.
43
7
0
5
10
15
20
25
30
35
40
45
50
YES NO
No. of respondents
No. of respondents
A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL
SILICON CITY COLLEGE OF MANAGEMENT AND COMMERCE Page 71
20. Personal bias creeps during performance appraisal.
Table-4.20:- Personal bias creeps during performance appraisal.
Options No. Of respondents
% of responses
Yes 27 54%
No 23 46%
TOTAL 50 100%
Graph:-4.20: Personal bias creeps during performance appraisal
INTERPRETATION:-
1. 54% Responders agrees Personal bias creeps during performance appraisal.
2. 46% Responders doesn’t agree Personal bias creeps during performance appraisal.
27
23
21
22
23
24
25
26
27
28
Yes No
No. Of respondents
No. Of respondents
A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL
SILICON CITY COLLEGE OF MANAGEMENT AND COMMERCE Page 72
CHAPTER-5
FINDINGS, SUGGESTION, CONCLUSION
A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL
SILICON CITY COLLEGE OF MANAGEMENT AND COMMERCE Page 73
FINDINGS
Purpose of performance appraisal system in Medicon leather pvt.ltd is for
promotions and career development
Four methods are followed for performance appraisal they are
a. Behaviorally anchored rating scales.
b. Assessment centre.
c. 360 degree PA.
d. Management by objective.
Reward system is not implemented effectively.
Performance appraisal method creates a suitable environment in the organization.
A few of Training and development programs help [in improving the performance
of the employees in the organization].
Most of the employees get sufficient benefits from performance counseling
sessions.
Performance appraisal increases the output of organization.
Performance appraisal supports values and culture
The individual performance rate is calculated base on both individual general
qualities & the main areas of work assigned to them.
A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL
SILICON CITY COLLEGE OF MANAGEMENT AND COMMERCE Page 74
SUGGESTIONS
The existence of an atmosphere of confidence and trust so that both supervisor and
employee may discuss matters frankly and off suggestions which may be beneficial for
the organizations and for an improvement of the employee.
The supervisor should thoroughly evaluate the employee’s performance so that he
is capable of meeting challenges about has ratings of his subordinates.
The supervisor should try to analyze the strengths and weakness of an employee
and advise him on correcting the weakness.
The appraisal program should be less time consuming and less costly. At the same
time, it should bring the maximum benefit.
The results of the appraisal, particularly when they are negative, should be
immediately communicated to the employees, so that they may try to improve
their performance.
A post appraisal should be arranged so that employees may be supplied with
feedback and the organization may know the difficulties under which employees
work, so that their training needs may be discovered.
Provide employees with a sense of their work accomplishment relative to
expectation and predefined indicators.
Support employee development through discussion of assigned opportunities and
training.
Avoid surprises, keep lines of communication opens.
Provide the option of document performance in a narrative format relative to
specific accomplishment during the review period.
A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL
SILICON CITY COLLEGE OF MANAGEMENT AND COMMERCE Page 75
CONCLUSION
It is here by concluded that the performance appraisal process in Medicon leather pvt.
Ltd. is found to be well defined and is appropriate and is tied directly to the organization
objectives and strategies following a set criteria.
The Head of the department and controlling officers have selected the best available
employees for promotions. No discrepancies are observed. The employees are given
promotions and other benefits. They do not seem to have grievance with regard to the
promotions. There is a cordial atmosphere prevalent in the organization developed with
good work culture. All this is due to well-ordered performance. In Medicon leather
pvt.ltd. The appraisal process will helpful to the career development of the employs.
A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL
SILICON CITY COLLEGE OF MANAGEMENT AND COMMERCE Page 76
ANNEXURE
A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL
SILICON CITY COLLEGE OF MANAGEMENT AND COMMERCE Page 77
QUESTIONNAIRE
Name of Respondent:
Age:
Designation:
Introduction & purpose
I Veena kumara.k, doing my BBM from SILICON CITY COLLEGE OF
MANAGEMENT AND COMMERCE which is affiliated under BANGALORE
UNIVERCITY. As a part of my course iam doing a project on ‘A STUDY ON
EMPLOYEE PERFORMANCE APPRAISAL’. I request you to extend your earnest
cooperation in filling this questionnaire. The information furnished by you is purely for
my academic purpose only and is kept confidential.
1. Which method of performance appraisal is implemented in the organization? ( )
(a)Merit
(b) Grading
(c) Other
2. Do you think PA helps people set and achieve meaning goals? ( )
(a)Yes
(b) No
3. The recent performance appraisal was successful in identifying your abilities. ( )
(a) Yes
(b) No
4. Who talked more during the interview? ( )
(a) Reporting officer
(b) Myself
(c) Both equally
A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL
SILICON CITY COLLEGE OF MANAGEMENT AND COMMERCE Page 78
5. Your performance appraisal process supports your culture and values. ( )
(a) Yes
(b) No
6. What is the purpose of performance appraisal in APTDC? ( )
(a) Promotions
(b) Increments
(c) Career development
(d) Training
7. Does PA process help to raise organization total output? ( )
(a) Yes
(b) No
8. Base on which area your performance will be rated? ( )
(a) The main areas of work assigned to you
(b) On individual general qualities
(c) Both
9. Have you been able to express all the difficulties & problems you had been facing
regarding your job and achievements of key performance areas (K.P.A)? ( )
(a) Yes, all difficulties without any problems
(b) Most of them
(c) Some of them
(d) Only a few of them
(e) Not at all
A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL
SILICON CITY COLLEGE OF MANAGEMENT AND COMMERCE Page 79
10. Which Method is followed for measuring performance appraisal in Medicon Leather
pvt.ltd? ( )
(a) Behaviorally anchored rating scales [BARS]
(b) Assessment centre
(c) 360 degree PA
(d) Management by objective
11. How do you rate your performance? ( )
(a) Excellent
(b) Satisfied
(c) Dissatisfied
(d) No comments
12. Does your performance appraisal system give constructive feed-back to you about
your performance? ( )
(a) Yes
(b) No
13. Does your company go by with respect to promotions? ( )
(a) Merit
(b) Seniority
(c) Both
14. Do you feel that job rotation will help in increasing the performance? ( )
(a) Yes
(b) No
A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL
SILICON CITY COLLEGE OF MANAGEMENT AND COMMERCE Page 80
15. On what factors your performance is evaluated? ( )
(a) Job knowledge
(b) Quantity of work
(c) Punctuality
(d) Customer contact
16. In your opinion performance appraisals are? ( )
(a) True reflections of our performance
(b) Influenced appraisal opinion
(c) Always away from reality
17. Number of employees being appraised during their working period. ( )
(a) Yes
(b) No
18. Does any change arise after appraising the performance of employees? ( )
(a) Yes
(b) No
19. What is your opinion about the fixation of performance standards? ( )
(a) Totally agree
(b) Agree
(c) Totally disagree
(d) Disagree
(e) No comments
20. Does personal bias creeps in while appraising an employee. ( )
(a) Yes
(b) No
A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL
SILICON CITY COLLEGE OF MANAGEMENT AND COMMERCE Page 81
BIBLIOGRAPHY
1) Mamoria C.B., PERFORMANCE APPRAISAL, Himalaya publishing House
Bombay,1999 .
2) Aswatappa.K., HUMAN RESOURCE MANAGEMENT.
3) Subba Rao.P., ESSENTIAL HUMAN RESOUCE MANAGEMENT&INDUSTRIAL
RELATIONS, Himalaya publishing House, Bombay, 1996.
4) T.V.Rao., DEVELOPING&APPRAISING MANAGEMENT
Web sites:-
www.kmbgroup.in
www.wikipedia.com
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