A

DISSERTATION REPORT

ON

PERFORMANCE APPRAISAL

AT JINDAL BROTHERS Pvt. Ltd

Submitted in partial fulfillment of the requirement for Master of Business Administration (MBA),

FROM

INSTITUTE OF MANAGEMENT AND TECHNOLOGY

SUBMITTED TO: SUBMITTED BY:

Mrs. ESHA BATHLA ASHUTOSH PANDEY

(Internal Guide) M.B.A 4th Sem.

Session: 2010-2012

INSTITUTE OF MANAGEMENT AND TECHNOLOGY

Bazpur Road, Kashipur-244713 U.S.NAGAR (UTTARAKHAND)

(Approved By AICTE: Affiliated to Uttarakhand Technical University)

Declaration

I hereby declare that the work presented herein is genuine work done originally by me and

has not been published or submitted elsewhere for the requirement of a degree programme.

Any literature, data or works done by others and cited within this dissertation has been given

due acknowledgement and listed in the reference section.

 

 

      

Signature of the candidate 

(Ashutosh Pandey) 

 

Acknowledgement

In the completion of this project report, I have received encouragement and support from

various quarters, which need special mention.

I wish to acknowledge my indebtedness to Mrs. Esha Bathla, Institute of Management &

Technology, Kashipur, under whom this work has been completed, for extending all possible

cooperation.

I am also thankful to all those people of Institute of Management & Technology, who helped

me directly or indirectly during this period.

MERE ACKNOWLEDGEMENT MAY NOT REDEEM THE DEBT I OWE TO MY

PARENTS FOR THEIR DIRECT/INDIRECT SUPPORT DURING THE ENTIRE COURSE

OF THIS PROJECT.

ASHUTOSH PANDEY

TABLE OF CONTENTS

Title

1. Chapter I

Acknowledgement

Profile of the Project Guide

Executive Summary

2. Chapter II

Company profile

Scope & Objective

3. Chapter III

Research methodology

4. Chapter IV

Performance management

5. Chapter V

Data analysis

6. Chapter VI

Findings

7. Chapter VII

Recommendations

8. Chapter VIII

Limitations

9. Chapter IX

Bibliography

10. Chapter X

Appendix

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.

PERFORMANCE APPRAISAL - PROCESS MAP

PERFORMANCE APPRAISAL METHODS

1. Graphic rating scale

2. Paired Comparison

3. Forced choice approach

4.Easy Appraisal

5.3600 appraisal

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.

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?"

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.

COMPANY PROFILE

Jindal Brothers Pvt. Ltd. specializes in Design, Engineering, Fabrication and Erection of Pre-

Engineered Metal Building Systems.   The Group is well known in the Middle East & India for

the quality of the products and services offered. In 1998, Jindal Brothers Pvt. Ltd started its

journey in India by setting up State of Art manufacturing facility at Manesar, Gurgaon.  Design

and Detailing work is carried out by highly skilled Engineers with computed aided design and

drafting facilities at the Company’s Head Office at New Delhi. Their objective is to deliver cost

effective, quality Pre-Engineered Metal Buildings within agreed time schedules to their

Customers. Jindal Brothers Pvt. Ltd. maintains high degree of professionalism at all levels, a

commitment needed to maintain highest possible standards.  Every project is executed with

Micro Planning, to achieve the Milestones set out in the contract.  This combined with quality of

their products has earned us reputation in the Market Place. Corporate giants, both National and

Multinational, have complimented their strategy of providing single point responsibility for

Supply and Erection with highly motivated and trained In House Project Management Team to

handle projects, whether it is small or big, simple or complex.  More than 500 Pre-Engineered

Buildings have been installed across the length and breadth of their Country.  This experience

corroborates their claim. Regional / Area offices across the Country are fully equipped to provide

pre-order and post order service to their valued Customers. Organizational effectiveness depends

upon the level of performance of its employees. Hence the level of performance has to be

ensured. Periodic stock taking of the qualitative state of the man power is of vital importance to

an organization and the organization tries to collect the relevant data through the tool of

performance appraisal reports. Thus performance appraisal is essential for performance

effectiveness and efficiency of the organization and also for carrying out administrative decisions

regarding human resources. The correctness of the decision will depend heavily upon the validity

of the data gathered through appraisal system.

The JINDAL BROTHERS is a relatively an older organization and has been restructuring its

Human Resources Systems and Policies in alignment with the current business environment. I

have therefore taken up this project with an aim to study the existing system of performance

appraisal so that this might help other organizations to follow the same.

Services

Pre-Engineered steel buildings are designed and fabricated to client’s requirements in accordance

with the Universal standards. A pre-engineered steel building consists of four major groups of

components namely primary members, secondary members, metal roofing/wall cladding and

connection fasteners. These components are designed that they are compatible with each other.

The fabrication of these components is carried out in factory under strict quality control as per

detailed shop drawing. These components are transported to site with proper markings and

assembled at site as per erection drawings.

Knowledge Hub / Brain Ware

They call this the knowledge Hub, a world class Design & Engineering Office manned with

team of experienced professionals and equipped with latest sophisticated design tools which

distinguishes Jindal Brothers Pvt. Ltd. from others.

Stadd Pro, MBS, AUTOCAD, Primavera, MS Projects are among the few Engineering &

execution tools in use at Jindal Brothers Pvt. Ltd. that delivers the fastest solution at the best of

engineering practices applied in a true international design environment.

The Brain House offers intelligent engineering solutions and supports post order functions with

general arrangement, fabrication and erection drawings. The computerized drafting, detailing and

logic programs enable user friendly details to simplify manufacturing process and erection

methods.

The Jindal Brothers Pvt. Ltd. knowledge archives has vanity of standards and design codes such

as AISC, AISI, MBMA, AWS, UBC, ASCE, IBC, IS and many others to suit customer’s need of

a Pre-Engineered building at any place or country. 

The Jindal Brothers Pvt. Ltd.’s consistent efforts in research & development and global sourcing

of material have positioned the Organization as a lead runner in introducing innovative ideas and

products in the market place.

Manufacturing Facility:

Their State-of-the-art manufacturing facility is located at Manesar. It houses special

equipments to produce quality pre-engineered buildings such as:

Automatic Beam Welding Line

Plate Shearing Line

Radial Drilling Machine

Cold Roll Forming Line

Hydraulic Press Break Line

Automatic Shot Blasting Line

The welding process is as per American Welding Society Standards. (AWS). All welders are

qualified to required standards.

Well defined process on the shop floor ensures smooth flow of material and productivity.

All structural components to complete Pre-engineered building are produced in-house and go

through stringent quality checks prior to dispatch.

All major raw materials and bought out items are sourced from a Panel of approved supplier

to ensure quality and timely supplies.

 

Automatic

Welding

Machine

Purlin Roll

Forming

Machine

Roofing Profile

Line

JINDAL BROTHERS India Projects:::

 

 

 

Location Client

Washim

 

 

 

ITC

Grain Godown

Cafeteria

Dept. Store

Bawal YKK  (SMCC Construction)

Jagdishpur

 

 

ITC

Grain Godown

Cafeteria

Vatva , Ahmedabad MIDCO Containers Pvt. Ltd

Delhi Giex Foods

Pune S.M. Auto Eng.

Mandsour

 

 

 

ITC

Grain Godown

Cafeteria

Dept. Store

Amaravati ITC

 Dept. Store

Gurgaon SMCC

Chandouli ITC

Daman Enercon

Delhi Food Processing Equipment

Bhuj Essar Construction

Delhi Jindal Stainless

Delhi Honda Siel

Sri Perumbudur Saint-gobain

Faridabad Tata   Iron And Steel Co.

Gurgaon Smcc - Kienfie 

Gurgaon Smcc - Kinzoku

Kanpur Hargovind Bajaj

Aurangabad Gran Electronics

Chennai Ameco Infrastructure

Delhi Manmohan Pipes

Daman

 

Blossom Industries

GreenPly Industries

Gurgaon SMCC – Honda

Gurgaon SMCC – Honda

Hyderabad HBL Nife

Chenani Meredian  Apparel

 

PERFORMANCE APPRAISAL AT JINDAL BROTHERS

While on the job, performance reviews of every employee are done every quarter. The reviews

are done with a view to helping the individual excel at his/her workplace. In case there are any

training requirements, these are noted and acted upon in the coming quarter. Also, the goals and

objectives for the employee are re-visited for

The performance appraisal mechanism is carried out at Jindal Brothers for promotional purposes

These are done so as to motivate the employee and improve his performance level. The method

is as follows:

a) Establishment of performance standards with the employees

b) The goals are set mutually as per measurable standards.

c) The actual performance is hence measured.

d) After measuring of the actual performance, the same is compared with the standards set

e) The appraisal is then discussed with the employees.

f) And finally, if need arises corrective action is initiated. For this purpose the corrective action

is actually identified through brainstorming exercises initiated by the departmental heads at

all the Jindal Brothers. It is then measured as a tool to evaluate the past performances of the

employees.

Some of the methods used at Jindal Brothers are:

1. Key Performance Index

2. 360 Degree Feedback

3. Paired Comparisons

4. Behaviorally Anchored Rating Scale

1. KPI-Key Performance Index

It is based on the performance level of the employee generally classified on the basis of:

Targets achieved

Ratings through students’ feedback forms

Punctuality and regularity

Day to day performance

This is given after every module at the centers.

Thus we can observe that the appraisal system is not a biased one but based on performance and

productivity basis. All the respective heads of the employee together with the senior persons at

the center brainstorm and then give the promotion.

2. 360 Degree Feedback

This feedback system involves the participation of Top Management.

Thus the feedback given by these members at Jindal Brothers is considered under a holistic view

and then the employee is given a performance appraisal. This evaluation method involves 40%

feedback from the coworkers which says that the employee should not only maintain good

rapport with the senior or junior but majorly with the coworkers also.

3. Paired Comparisons

The evaluator compares all possible pairs of subordinates on their overall ability to do the job.

Due to the subjectivity of evaluating overall performance some managers me e a number of

different job related dimensions when comparing.

4. Behaviorally Anchored Rating Scale (BARS)

It is a sophisticated method of evaluating the employee based on the employee behavior. It is a

numerical scale that is anchored by the seniors of the organization at various centers. This is

highly confidential and the information is sent in sealed envelopes and opened only at the time of

the final evaluation. There is no further discussion regarding this scaling, thus it is not given

enough weightage.

OBJECTIVES OF THE STUDY

To identify the technique of Performance Appraisal followed in Jindal Brothers Pvt. Ltd.

To study how the employees are rated against these parameters

To identify how the performance of the employees is improved and enhanced

To provide suggestions & recommendations to improve their Performance Appraisal

RESEARCH METHODOLOGY

In order to accomplish the objectives of the study, it is essential to articulate the manner in which

it is to be conducted, i.e., the research process is to be carried-out in a certain framework. The

research methodology, which follows, is the backbone of the study.

Data Collection Sources

Research work was done from two sources: -

(1) Primary data

(2) Secondary data

Primary data was collected by questionnaire and interview in the organizations. The

questionnaire comprised of closed and attitude questions. The opinion on existing Performance

Appraisal practices and their affectivity were collected through questionnaire which was

circulated to all the employees at all levels and the results have been analysed on the basis of

agree and disagree. The methodology for collection of data also included interviews and

discussion with the top management of the organization.

Secondary data: It was collected by reviewing different literatures, from published books,

management journals, articles published by the other researchers on 360 Degree Appraisal.

Sampling:

The total sample size for this project was 4 HR people at Jindal Brothers.

The information collected through above methods has been tabulated, analysed and interpreted.

Finally an overall assessment of the contribution of top management has been made towards

improving the effectiveness of the organization.

TYPES OF RESEARCH

Research methodology is a way to systematic solve the Research Problem. It is a procedure,

which is followed step by step to solve a particular research problem.

There are basically four types of researches:

1 EXPLORATIVE RESEARCH

2 DESCRIPTIVE RESEARCH

3 DIAGNOSTIC RESEARCH

4 HYPOTHESIS TESTING RESEARCH

Explorative Research:- To gain familiarity with phenomenon or to achieve an insight into it.

Descriptive Research:-To poetry accurately the characteristics of the particular individual

situation or a group.

Diagnostic Research:-To determine the frequency with which something occurs or with which

it is associated with something else.

Hypothesis Testing Research:-To test a hypothesis of casual relationship between variables.

The present project is Descriptive cum Explorative in nature. It is done to poetry accurately

the characteristics of a particular individual situation or a group. The major purpose of the

descriptive research is the description of the state of the affairs as it exits at resent. The main

characteristics of this method are that the researcher has no control over the variables; he can

only report what has happened or what is happening.

LITERATURE REVIEW

Organizations exist to achieve goals. Goals are only met when individual employees efforts

matches with policy of the organization and thus bringing out success and effectiveness. The

assessment of how successful employees have been at meeting their individual goals therefore

becomes a critical part of HRM and here comes Performance Appraisal System.

Performance appraisal is an important component of the information and control system. In

today’s flexible organizations, performance evaluation provides an important way for managers

to clarify performance goals and standards and to enhance future individual performance. Thus

the purpose of performance appraisal is to improve the organization’s performance through the

enhanced performance of individuals.

The performance appraisal system:

Is an organizational necessity

Is based on well defined objective criteria

Is based on careful job analysis

Uses only job related criteria

Is supported by adequate studies

Is applied by trained qualified raters

Is applied objectively throughout the organization

Can be shown non discriminatory as defined by law

PERFORMANCE APPRAISAL AND MANAGEMENT,

Journal of Performance Appraisal Techniques November 4,2001-Vol.1,No.4pp.418 By Fletcher CPerformance appraisal has widened as a concept and as a set of practices and in the form of performance management has become part of a more strategic approach to integrating HR activities and business policies. As a result of this, the research on the subject has moved beyond the limited confines of measurement issues and accuracy of performance ratings and has begun to focus more of social and motivational aspects of appraisal. This article identifies and discusses a number of themes and trends that together make up the developing research agenda for this field. It breaks these down in terms of the nature of appraisal and the context in which it operates. The former is considered in terms of contemporary thinking on the content of appraisal (contextual performance, goal orientation and self awareness) and the process of appraisal (appraiser–appraisee interaction, and multi-source feedback). The discussion of the context of appraisal concentrates on cultural differences and the impact of new technology.

Performance Appraisal as Effective Management or Deadly Management Disease Journal of Performance Appraisal Management Jan1,2005- Vol.80, Pages18 by Gregory H. Dobbins

Understanding person and system sources of work variation is fundamental to performance appraisal. Two divergent perspectives on this issue, the traditional human resource management view and the statistical process control view (Deming, 1986), are contrasted. Two studies are reported that investigate two specific questions that arise from a broader view of the appraisal

process. Results indicate that managers and subordinates believe that typical poor performance has different causes and that actual productivity levels far outweigh person or system sources of performance variance in appraisal judgments.

A Contingency Approach to Appraisal Satisfaction Journal of Performance Appraisal Approaches,July2009,Vol.49,Pages65 by Gregory H. Dobbins

The present study explored the moderating effects of organizational variables on the appraisal characteristic-appraisal satisfaction relationship. Analyses indicated that the appraisal characteristics of action plans, frequency, and rater training were more positively related to appraisal satisfaction when subordinates experienced role conflict, were not closely monitored, and supervisors had a large span of control. The results provide substantial support for conceptualizing appraisal satisfaction as a contingent function of both appraisal characteristics and organizational variables. Implications of the findings for the design of appraisal systems, appraisal effectiveness, and future research are discussed.

Differential Performance Appraisal Criteria Journal of Performance Appraisal Criteria,Oct2010,Vol.18, pages 72 by Taylor Cox

Performance appraisal ratings of 125 first-level managers were analyzed to investigate the degree to which the criteria used to evaluate the overall job performance of black managers differs from that used to evaluate white managers. The performance appraisal form included items that measured both the social behavior dimension and task/goal accomplishment dimension of job performance. The appraisal ratings of both groups on each dimension were correlated with measures of overall job performance and promote ability. Results indicated that social behavior factors are more highly correlated with the overall job performance of black ratees than for white ratees. Implications of these results for both black managers and organizations are discussed.

A Restatement of the Satisfaction Journal of Performance Hypothesis,Vol.59,Sept 2010,Pages 45 by Dennis W. Organ,This article reviews recent evidence in support of Organ’s (1977) argument that satisfaction more generally correlates with organizational prosaically or citizenship-type behaviors than with traditional productivity or in-role performance. An attempt is then made to interpret just what it is in satisfaction measures that provides this correlation, leading to the suggestion that fairness cognitions comprise the major factor. Implications of this interpretation for theory, research, and management practice are offered.

ANALYSIS & INTERPRETATION

This chapter deals in tabular presentation results and their analysis for the purpose of easy

reading the section has been divided into two parts.

* Tabular form of Response

* Inference

* Remarks on each question

1. In your company, the key competencies required for each job are already identified?

Response Category No. of responses Percentage

Very true 0 0

True 4 8

Partly true 9 18

Not true 37 74

No. of re-

sponses

Percentage

01020304050607080

Very true

True

Partly true

Not true

Inference: Most of the respondents (74%) found the above statement to be ‘Not True”. This was

followed by 18% of the respondents feeling that this statement was ‘Partly True’ for their

organization. Only 8% of the people found it to be ‘True’.

Remarks: Although the appraise does not have a clear understanding of what is expected of him

at the beginning of the year (Inference I), both he and the appraiser know what his job is all

about. This also shows that although an employee knows what his current to do to be rated

higher by the reporting officer. The responsiveness in category of Partly True and Not True may

be due to the face that job content in Jindal Brothers is flexible and not well defined and some

people find it difficult to define their jobs. However, most of the people have a general idea of

the scope of their jobs.

2. There are mechanisms that help employees develop their potential for the next round of job?

Response Category No. of responses Percentage

Very true 0 0

True 5 10

Partly true 25 50

Not true 20 40

No. of re-

sponses

Percentage

0

10

20

30

40

50

Very true

True

Partly true

Not true

Inference: Quite a large number of respondents (40%) shared the view that the appraisal system

did not give a clear understanding of all appraisals, job to both appraiser and appraise by saying

that it was ‘Not True’. Only 50% and 10% of the respondents felt that the statement was ‘True’

and ‘Partly True’ respectively.

Remarks: Although the appraise does not have a clear understanding of what is expected of him

at the beginning of the year (Inference I), both appraise and the appraiser know what his job is all

about. This also shows that although an employee knows what his current to do to be rated

higher by the reporting officer. The responsiveness in category of Partly True and Not True may

be due to the face that job content in Jindal Brothers is flexible and not well defined and most

people find it difficult to define their jobs. However, most of the people have a vague idea of the

scope of their jobs.

3. Employees regularly receive feedback about their potential for higher level jobs?

Response Category No. of responses Percentage

Very true 0 0

True 8 16

Partly true 7 14

Not true 35 70

No. of re-

sponses

Percentage

0

10

20

30

40

50

60

70

Very true

True

Partly true

Not true

Inference: 70% of the respondents agreed that the appraisal system did not helped them to know

their potential to perform at higher levels. Plan their performance well by saying that it was ‘Not

True’. Only 16% and 14% people felt that this statement was ‘True’ and ‘Partly True’.

Remarks: The above inference shows that the PA system in Jindal Brothers does not give

feedback about ‘planning for performance’ to its employees. It helps anticipating work needs in

order to arrange work in logical order. It also helps in devising efficient methods to attain pre-

determined plans. Again due to flexibility in job content, some people may have found problems

in planning their performance systematically.

4. Job rotation is practiced widely to help people develop their potential in new areas?

Response Category No. of responses Percentage

Very true 7 14

True 18 36

Partly true 25 50

Not true 0 0

No. of re-

sponses

Percentage

0

10

20

30

40

50

Very true

True

Partly true

Not true

Inference: About 50% of the respondents felt that the above statement was ‘Partly True’. It was

followed by 36% people feeling that it was ‘True’ with 14% believing that it was ‘Very True’.

Remarks: Job rotation is the most economical way of providing training to the employees. It

facilitates both organization and individual development. Job rotation gives an individual hand

on experience for carrying out various different functional activities. The performance appraisal

system should include this process in the training need identification performance.

5. The appraisal system provides an opportunity for self-review and reflection?

Response Category No. of Responses Percentage

Very true 0 0

True 0 0

Partly true 13 26

Not true 37 74

No. of Re-

sponses

Percentage

01020304050607080

Very true

True

Partly true

Not true

Inference : There is a general agreement on then fact that the PA system in Jindal Brothers does

provide ample opportunity for self-review and reflection. 74% of the people felt that

it was ‘Partly True’ with 26% agreeing.

Remarks : The presence of self-appraisal procedure in the PA appraisal system is an important

reason for the above inference. The self appraisal includes questions on major

achievements, constraints in performance, type of training required, tasks/activities

undertaken successfully during the year, problems faced etc. It also includes

suggestions on making the job interesting and challenging and plans to improve

effectiveness. Due to this fact, employees may have felt that they were participating

actively in their own appraisal by self -review and reflection on various issues.

6. Promotions are based strictly on need rather than to reward individuals?

Response Category No. of Responses Percentage

Very true 0 0

True 4 8

Partly true 25 50

Not true 21 42

No. of Re-

sponses

Percentage

0

10

20

30

40

50

Very true

True

Partly true

Not true

Inference : 50% of the respondents believe that the above statement is ‘Partly

True’ This was closely followed by 42% of the respondents rating it as

‘Not True’ and 8% of the respondents feeling that it was ‘True’.

Remarks : The performance appraisal is completely need based the organization

recognizes and promotes high achievers only if there are vacancies

available in the organization. This has a negative impact on people who

are not rewarded and promoted duly for their good performance. There

should be a system of rewarding employees either in monetary terms or

in terms of recognition.

7. The appraisal system gives each appraisee an idea of what is expected of him next year?

Response Category No. of Responses Percentage

Very true 0 0

True 10 20

Partly true 26 52

Not true 14 28

No. of Re-

sponses

Percentage

0

10

20

30

40

50

60

Very true

True

Partly true

Not true

Inference : 52% of the respondents felt that the above statement was ‘Partly

True’. This was followed by 28% and 20% of the respondents

feeling that it was ‘Not True’ and ‘True’ respectively.

Remarks : Each employee needs to have an idea as to what accountabilities

will he have if his appraisal is given a good remark for working at

higher levels. The appraisee should know his potential, which

will go a long way in his higher level jobs.

8. It is designed to aid the appraisee and appraiser jointly understand the formers job?

Response Category No. of Responses Percentage

Very true 0 0

True 14 28

Partly true 22 44

Not true 14 28

No. of Re-

sponses

Percentage

05

1015202530354045

Very true

True

Partly true

Not true

Inference : There was a mixed response to the given statement. 44% of the responses

consisted of “Partly True’ ratings. 28% respondents believed that this was

‘Not True’ whereas 28% believed that this was ‘True’.

Remarks : The above inference implies that Jindal Brother’s PA system does not score

well in the aspect of transparency in communicating an employee’s

performance through performance review and discussion. The discussions

between appraisal processes. The interaction on self appraisals is not a

common feature and is only done on certain occasions (exceptionally good or

bad performance etc.) The presence of 44% responses as “True” may be due

to good relationship and open communication shared by some of the

appraiser appraise pairs.

9. The performance appraisal provides an opportunity for self review and reflection?

Response Category No. of Responses Percentage

very true 0 0

true 2 4

partly true 25 50

not true 23 46

No. of Re-

sponses

Percentage

0

10

20

30

40

50

very true

true

partly true

not true

Inference : Most of the respondents agreed that the appraisal system catered to their

development needs (50% believed that it was “Partly True”) and it was very

closely followed by 46% saying it was “Not True”. There were 4% cases,

which believed that it was ‘True’.

Remarks : Although the inference indicates that the PA system allowed mutuality, trust

and open communication between superior and subordinates, there may be

chances of biases in employees while rating this statement. The answers may

have varied depending on proximity etc.

10. The appraisal procedure allows the appraisee to express his developmental needs?

Response Category No. of Responses Percentage

very true 0 0

True 8 16

partly true 16 32

not true 26 52

No. of Re-

sponses

Percentage

0

10

20

30

40

50

60

very true

True

partly true

not true

Inference : The most common response on above statement was an astounding ‘Not

True’ with 52% people agreeing that the PA system was free of any biases. It

was followed by 32% saying that it was ‘True’ and 16% saying that it was

‘Partly True’.

Remarks : The above inference implies that people are satisfied with the PA system in

Jindal Brothers and believe that it provides scope for developing their

potential. This may be due to the fact that the self appraised of the appraise

invites suggestions on job enrichment, training needs and steps to be taken to

improve individual’s effectiveness.

11. The system has scope to correct the biases of the assessor through a super review?

Response Category No. of Responses Percentage

very true 0 0

true 2 4

partly true 14 28

not true 34 68

No. of Re-

sponses

Percentage

0

10

20

30

40

50

60

70

very true

true

partly true

not true

Inference : 68% of the people rated the above statement as ‘Not True’ 28% believed it was

‘Partly True’ with 4% disagreeing by saying that it was ‘True’.

Remarks : A performance appraisal system, which is perceived as ‘bias -free’ by its

executives, is an achievement for the organization. In the PA system the

reporting officer appraises a section of people whereas the reviewing officer

appraises the performance of an entire department. also the reviewing officer is

the immediate superior of reporting officer. Any disagreement between the

assessments of an employee has to be duly discussed and recorded. Also, any

noticeable difference of opinion between self appraisal and appraisal by

reporting officer has to be accounted for. All the above factors help in correcting

the biases,. if any, of reporting officer.

12. The appraisal system provides for a frank discussion between appraiser and appraisee?

Response Category No. of Responses Percentage

very true 0 0

True 6 12

partly true 0 0

not true 44 88

No. of Re-

sponses

Percentage

0102030405060708090

very true

True

partly true

not true

Inference: An astounding 88% rated the above statement as not true with 12% that it was

true.

Remarks Although, most of the people felt that there was mutuality and trust between

appraiser and appraise, it may again depend on the proximity and relationship

shared by an employee and his/her boss. The ratings may be based, as the

employees may have felt that a negative answer may adversely affect them. The

reason behind this conclusion is that a low score on extent of communication and

discussion between appraisers and appraise and high score on mutuality and trust

give a contradictory view.

13. What kind of an appraisal system will bring out the best of an employee?

Response Category No. of Responses Percentage

appraisal by all superiors 10 20

appraisal by immediate superior

5 10

appraisal by reference team 15 30

appraisal by reference team and self.

20 40

No. of Re-

sponses

Percentage

05

10152025303540 appraisal by all

superiors

appraisal by immediate su-perior

appraisal by reference team

appraisal by reference team and self.

Remarks : This shows that the relationship between appraiser and appraise, in Jindal

Brothers, with respect to planning the performance is quite good. The

subordinate in planning his performance. The appraiser helps the appraise

in testing the soundness of his goals as well as of his plans for achieving

them. This implies that there is active participation of both appraiser and

appraise in performance planning. The reason behind ‘Not True’ answer

may be due to the fact that many jobs in Jindal Brothers are not well

defined and therefore an elaborate planning on them is not done.

FINDINGS

Organization Structure and Design

1- Jindal Brothers is a young, dynamic organization and is going strong on the stock market.

2- The company is well aware of the dynamic environment of software, it is operating and

in order to keep it with the pace of the environment it believes in constant up gradation of

courses. Organization structure and design of the company is such that it supports this

change.

3- Jindal Brothers has a matrix kind of a structure wherein it takes the form of combination

of structures. Matrix structures are adopted became there is more than one factor around

which the structure can be built.

4- This matrix structure at Jindal Brothers improves the quality of decision-making where

interest conflicts arise and direct contacts replaces bureaucracy

5- . This increases the motivation of the managers and development of wider involvement in

strategies. Although at times the company faces high risk of dilution of priorities became

e people do not know who is responsible for what.

6- An organization is a network of authority, responsibility and relationships. Different

organization structure consists of different type of relationships.

RECOMMENDATIONS

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.

5. More stress relieving packages should be offered to the mentally stressed staff.

6. Overtime should be taken care of at time of performance appraisal, which would motivate

the employees to perform better for longer hours.

7. Performance appraisal should after at proper span of time .

8. Performance appraisal should be done by expert person.

CONCLUSION

Performance appraisal is the process of reviewing employee performance vis-à-vis the set

expectations in a realistic manner, documenting the review, and delivering the review verbally in

a face-to-face meeting, to raise performance standards year over year through honest and

constructive feedback. In the process management expects to reinforce the employee’s strengths,

identify improvement areas so that one can work on them and also set stretched goals for the

coming year.

Effective performance management requires a good deal of face-to-face supervisor-employee

interaction. By knowing the subordinates, a supervisor can steer them onto a path of greater

productivity and optimized output. It is one of the most significant and indispensable tool for an

organization as it helps in getting to know the people who work for them. provides information,

which helps in taking important decisions for the development of an individual and the

organization.

QUESTIONNANIRE

I have undertaken a project on PERFORMANCE APPRAISAL SYSTEM. The information furnished by you will help knowing the effectiveness of the present appraisal and reward system and if need be designing of a new appraisal system. The data will be kept confidential and will be used for academic purpose only.

1. In your company, the key competencies required for each job are already identified.

a) Very true b) true

c) Partly true d) not true

2. There are mechanisms that help employees develop their potential for the next rung of job.

a) very true b)true

c) partly true d) not true

3. Employees regularly receive feedback about their potential for higher level jobs

a) very true b)true

c) partly true d) not true

4. Job rotation is practiced widely to help people develop their potential in new areas.

a) very true b)true

c) partly true d) not true

5. Your company’s promotion policies are clearly defined and shared with all employees.

a) very true b)true

c) partly true d) not true

6. Promotions are based strictly on need rather than to reward individuals?

a) very true b)true

c) partly true d) not true

7. The appraisal system gives each appraisee an idea of what is expected of him next year?

a) very true b)true

c) partly true d) not true

8. It is designed to aid the appraisee and appraisers jointly understand the former’s job?

a) very true b)true

c) partly true d) not true

9. The performance appraisal provides an opportunity for self review and reflection?

a) very true b)true

c) partly true d) not true

10. The appraisal procedure allows the appraisee to express his developmental needs?

a) very true b)true

c) partly true d) not true

11. The system has scope to correct the biases of the assessor through a super review?

a) very true b)true

c) partly true d) not true

12. The appraisal system provides for a frank discussion between appraiser and appraisee?

a) very true b)true

c) partly true d) not true

13. The procedure allows for the communication of CEO‘s goal to the workforce?

a) very true b)true

c) partly true d) not true

14. The appraisal system brings out the training needs of the employees.

a) very true b)true

c) partly true d) not true

15. The performance appraisal system clarifies the career prospects, aspirations and intentions.

a) very true b)true

c) partly true d) not true

16. The appraisal system provides a rational basis for salary recommendations.

a) very true b)true

c) partly true d) not true

17. The company relates reward to your performance.

a) very true b)true

c) partly true d) not true

18. What kind of an appraisal system will bring out the best of an employee?

a) appraisal by all superiors b) appraisal by immediate superior

c) appraisal by reference team c) appraisal by reference team and self.

19. How do you support your subordinates?

_____________________________________________________________________________________

_____________________________________________________________________________________

____________________________________.

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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