performance appraisal project
Post on 26-Nov-2014
1.034 Views
Preview:
TRANSCRIPT
A PROJECT REPORT ON
PERFORMANCE APPRAISAL AT
SUBMITTED TO THE
(Biju Patnaik University of Technology In Partial Fulfillment of the Degree of Master in Business Administration)
BY
KIRTY RANJAN NAYAK Regd.No:-0906289022
UNDER THE GUIDANCE OF
EXTERNAL GUIDE: INTERNAL GUIDE:Mr. AKHTAR HOSSAIN Mrs. SONAM SUBHADARSHINIGENERAL MANAGER (HR), FACULTY (HR),ARSS TATBHUBANESWAR. BHUBANESWAR.
Trident Academy of Technology Bhubaneswar
INTERNAL GUIDE CERTIFICATE
Guide Name : Mrs. Sonam SubhadarshiniDesignation : Faculty (HR)
This to certify that the project work titled “PERFORMANCE
APPRAISAL AT ARSS, BHUBANESWAR” is a work of Kirty Ranjan Nayak
(Regd. No.0906289022) carried out in partial fulfillment of the requirements for
awarding the degree in Master in Business Administration in Trident Academy of
Technology under Biju Patnaik University of Technology (BPUT) during the
academic year 2009-2011.
Prof. Partha Sarathi Das Prof. J.K.JoshiHOD, MBA Director AcademicsTAT, BBSR TAT, BBSR
Mrs. Sonam SubhadarshiniFaculty in HR, TAT, BBSR
EXAMINER CERTIFICATE
This is to certify that this piece of work entitled “PERFORMANCE APPRAISAL AT
ARSS” Submitted on partial fulfillment for degree of MBA is a record of studies and
bonafied project work carried out by Kirty Ranjan Nayak, student of MBA
programme 2009-2011 of Trident Academy of Technology, Bhubaneswar.
I wish him all success in life.
INTERNAL EXAMINER EXTERNAL EXAMINER
DECLARATION
I, hereby declare that the report on summer internship training entitled
“PERFORMANCE APPRAISAL at ARSS” submitted by me is of my original
research work. It does not form part of any previous project work, dissertation, thesis, or
report submitted to this university earlier or any other university.
Place: Bhubaneswar KIRTY RANJAN NAYAK
Date: (Signature)
ACKNOWLEDGEMENT
It’s a privilege to be associated with “ARSS Infrastructure Projects Ltd”,
Orissa’s top brand Infrastructure Company. This acknowledgement is not only
the means of formality, but to me, it is a way by which I am getting the
opportunity to show the deep sense of gratitude and obligation to all the people
who have provided me with inspiration, guidance and help during the preparation
of the project. At the very outset, I would like to express my gratitude from
bottom of my heart to Mr. Akhtar Hossain General Manager (HR) ARSS for
giving me the opportunity to do my Summer Internship Project in this esteemed
organization.
I articulate my sincere gratitude to my project guide Mr. Akhtar Hossain,
General Manager (HR) ARSS Infrastructure Projects Ltd. who has spend his
valuable time and guided me throughout the training process in spite his busy
schedule, in shaping of my project. I am also thankful to Mr.A.K. Mishra,
(Senior HR Executive) ARSS and Mr.B.S. Biswal, (Junior HR Executive)
ARSS for guiding me throughout the project providing me with the required
information about Infrastructure.
I also like to thank Prof. J.K. Joshi, Director Academics, Trident Group of
Institutions who helped to provide me the opportunity to undergo my summer
Internship Project in ARSS Infrastructure Projects Ltd. I would also like to
express my indebtedness to my faculty guide Mrs. Sonam Subhadarshini,
Trident Academy of Technology who helped me in preceding my project work,
I am thankful to Head of the Department Prof. Partha Sarathi Das and other faculties
of my department. This ultimately resulted in successful completion of the project.
But last not the least I am thankful to my parents, friends and all well wishers for
blessing me for my success.
Kirty Ranjan NayakRegd.no.-0906289022
Trident Academy of TechnologyBhubaneswar
PREFACE On partial fulfillment of the master degree course in Business Administration in which
an internship programme has been incorporated in the curriculum, during which a study
has to be done in an organisation mainly to extract a practical knowledge and to learn
the application of theoritical knowledge in the real corporate world. The professional
training is an integral part of an MBA programme. It helps the students to understand
the practical aspects of managing business in much better ways.
As a part of my MBA programme at Trident Academy of Technology I was supposed
to work for a period of “45 days” or “six weeks”. I was required to undertake a detailed
study of “Performance Appraisal At ARSS” for employees as whole in human
resource department. This part of the MBA has helped me in applying my theoretical
knowledge into practical experience. The 45 days training process has helped me in
getting a sufficient knowledge of how the theories and theorems in various books are
applied in the real world.
ARSS only the renewed infrastructure unit in the state of Orissa, well-known for its rich
qualitative services. Today, ARSS engaged in Rail Works, Road Works, Bridge Works,
and Marine Works. So the services of ARSS are not only for the state, it also reaches
the outside of the state customers as well. The uniqueness in the services of ARSS is
one of the major qualitative aspects.
I conducted a research work at the ARSS Infrastructure Projects Ltd at
Bhubaneswar to get a thorough understanding of the system of “Performance
Appraisal” for the employees that the organization is following. As for the method of
data collection I collected some data directly from the primary sources like the
responses from the employees regarding the system was collected through the
questionnaires, the online appraisal form and the statistical data were collected directly
from the sources. And some other secondary sources collections were also used. For
example the company’s official website was used for some deriving some information.
The summer training programme was really a learning experience and I hope this will
be useful and helpful to both ARSS and to me in coming day’s o my life.
CONTENTS
Page No
Title Page I
External Guide Certificate II
Internal Guide Certificate III
Examiner Certificate IV
Declaration V
Acknowledgement VI
Preface VII
Contents VIII
Chapter-1
Introduction 1
Objectives 4
Scope 4
Importance 4
Methodology 5
Limitation 7
Chapter-2
Company Profile 8
Vision 10
Mission 10
Achievements 14
Management 15
Chapter-3
Theoretical Framework 16
Objectives 18
Process 22
Methods 26
Chapter-4
Performance Appraisal at ARSS Infrastructure Projects Ltd. 34
Chaptere-5
Data Analysis 38
Swot Analysis 51
Chapter-6
Findings 54
Suggestions 55
Chapter-7
Conclusions 56
Chapter-8
Bibliography
Annexure
Copy of blank questionnaire
CHAPTER -1
INTRODUCTION
INTRODUCTION
There is a human tendency to make judgments about others who are around us
and also about oneself. It seems appraisal is both inevitable and universal. In the
absences of a carefully structured system of appraisal, people will tend to judge the
work performances of other, including subordinates, naturally, informally and
arbitrarily. However the human inclination to judge can create serious motivational,
ethical and legal problems in the work place. Without a structured appraisal system
there is little chance of ensuring that the judgment made will be lawful, fair, defensible
and accurate. Hence there is need for a systematic performance appraisal to judge the
performance of individual in any sector.
Performance appraisal systems began as simple methods of income justification.
That is, appraisal was used to decide whether or not the salary or wage of an individual
employee was justified. The process was firmly linked to material out comes. If an
employee’s performance was found to be less than ideal, a cut in pay would follow. On
the other hand, if their performance was better than the supervisor expected, a pay rise
was in order.
Performance appraisal is a systematic evaluation of an individual employee with
respect to his performance on the job and his potential for development. Performance is
carrying out the work entrusted by the employed directly or through his agents. The
management expects all the employees to perform this specified work for the payments
it makes.
Once the work is entrusted to the employee, it is necessary to measure the
performance to see:-
1) Whether the employee has done the work entrusted to him in
the way it was expected.
2) Whether there is any wastage in tears of time, money,
energy, skill etc.
3) Whether the same work could have been done in a better
way.
4) In the process, whether the employee has equipped himself
with his responsibilities.
Normally it is measured by a third party or the immediate higher officer.
This method of measuring the work is called appraisal. Unless the work is
carried out in the proper way, the employer will lose the employees. It is a
formal exercise in a documented form in which organisation makes an
evaluation of its employees in terms of his contributions made towards
achieving organisational objectives. It also evaluates further personal strengths
and weaknesses in terms of attributes and behaviors demonstrated for meeting
whatever objectives the organisation may consider relevant.
According to Heyel, “Performance Appraisal is the process of evaluating
the performance and qualification of the employees in terms of the requirements
of the job for which he is employed for the purpose of administration including
placement, selection, promotion providing financial rewards and other actions”
Performance Appraisals require differential treatments among the members of a
group as distinguished from actions affecting all members equally. Others regard
it as a process of estimating or judging the value, excellence, qualities or status
of some object, person.
Thus, performance appraisal is the step where the management finds out
how effective it has been at hiring and placing employees. If any problems are
identified steps are taken to communicate with the employee for their remedy.
Performance appraisal is a systematic and objective way of judging the relative
worth or ability of an employee in performing his job. The appraisal is
systematic when it evaluates all performances in the same manner, utilizing the
same approaches so that appraisal of different persons is comparable. Appraisal
has objective also. Its essential features are that it attempts at accurate
measurement by trying to eliminate human biases and prejudices.
Objectives of the Study:
In this research work, the researcher has made an attempt to study the
existing performance appraisal system in ARSS INFRASSTRUCTURE
PROJECT LTD, BBSR. The main objectives of the study are listed as under:
1. To have a brief insight into the existing performance appraisal
system in ARSS INFRASTRUCTURE PROJECT LTD, BBSR.
2. To critically assess the appropriateness of the existing performance
appraisal system.
3. To highlight the perception of appraisers and appraise relating to, the
existing Performance appraisal system.
4. To examine the strength and weakness of the present performance
appraisal system in the unit.
5. To examine the necessities for changes in the appraisal system.
6. To recommend necessary changes/modifications for making the
appraisal system more objective as well as effective for fulfillment of
organisation goals.
Scope of The Study:
The present research work was undertaken in ARSS Infrastructure
Projects Ltd. (BBSR). The scope of study covers the system of performance
appraisal followed in ARSS Infrastructure Projects Ltd (BBSR). I had collected
information from different divisions working under ARSS Infrastructure
Projects Ltd (BBSR). He has also studied different HR related issues prevailing
in ARSS Infrastructure Projects Ltd (BBSR).A brief idea of ARSS Infrastructure
Projects Ltd (BBSR) and its different unit has also been dealt with in this
research work.
Importance of the Study:
Performance management and performance appraisal can be a powerful
aid to any organisation change process as it provides for the joint identification
by the superior and the subordinate of the targeted behavior required and the
skills required to reach that target. Therefore more attention needs to be given to
the performance management of the teams as well as that of the individuals.
Earlier performance appraisal was associated with a rather basic purpose
involving a line manager completing an annual report on a subordinate's
performance and discussing it with him or her in an appraisal interview. But
now performance appraisal has become a general heading for a variety of
activities through which organisations seek to assess employees and develop
their competence enhance performance and distribute rewards. It sometimes
becomes a part of a wider approach to integrating human resource management
strategies known as performance management.
Performance appraisal recognizes the importance of the way a person goes
about his work, rather than just the result he achieves. What does the effective
performer do; and how does he do it? What are the differences between the way he
behaves and the way a poor performer behaves? The managers receive regular
feedback, through performance review, and are closely involved in the setting of
their own targets.
Performance appraisal can be a very useful management tool. A regular
review of each individual's performance should provide accurate information
about the quality and skills of the workforce-essential for manpower planning. An
appraisal system can also encourage commitment to corporate goals and
conformity with corporate norms. In this connection it becomes very much
necessary to study the existing performance appraisal system of an organisation
and to find ways in which the organisation can achieve its objectives in a more
effective and efficient ways.
Methodology:
Researcher is a scientific inquiry, and has three essential characteristics
i.e. objectivity, accuracy & continuity. Methodology has an important bearing in
the collection of reliable and pertinent information as weir as on the outcomes of
the study. The categorization of the proposed investigation into a certain type of
research, a corresponding method or methods designed for it and appropriate
techniques for collecting & analyzing data are together known as methodology
of research.
Research design is a complete outline of the conduct of the proposed research study.
The methodology adopted in conducting this study is discussed below:
Research Design: The study is designed to conduct an enquiry on the
Performance Appraisal System for executive employees in
ARSS INFRASTRUCTURE PROJECTS LTD (BBSR).
Primary sources:-
Primary sources of data collection or primary data are those data’s which are collected
directly from the respondents. They are collected for the first time from the sources
concerned and are popularly said as the first-hand data collection. They are collected
directly from the sources through observation, questionnaires, and schedules or through
personal interview. And these are the tools which are used particularly in surveys and
descriptive type of research.
Secondary sources:-
Data Collection: Data was collected through questionnaires, research, files and
documents of organisation, interview & observation.
Questionnaires: The data collected through questionnaire becomes primary
data, which is used to test hypothesis. The structured
questionnaire consisted of close-ended objective question.
Secondary Data: Secondary data on the organisation was collected from
various secondary sources like records, files, journal &
documents of the organisation.
Interview: Unstructured interview was conducted to get certain
information about the organisation from some employee.
Observation: Non-participant mode of observation was
adopted by the researcher to collect, some information on the
organisation.
Limitations:
While working in any project we face many types of limitations. In this project I
face some problems like:
The employee of the organisation having heavy work scheduled, so they not able
to provide sufficient time to us.
As it is a big Organisation we face time problem also. At any time we cannot
visit to their office.
Some of their HR policies are confidential; they do not disclose it to the public.
In this time we face problem. It is called biasness problem.
Non availability of resources is also one of the important factors here.
We face sampling error also.
CHAPTER-2
COMPANY PROFILE
HISTORY OF ARSS
The company is engaged in construction activities in India .The
Company undertake construction of railway infrastructure, roads, highways,
bridges and irrigation projects. The company started as a construction company
in the field of railway infrastructure development mainly in the state of Orissa.
Construction project are typically awarded through competitive bidding
process to bidden with certain eligibility requirement in their past experience
technical capabilities & financial strength.
The company came into
being as a Private limited one with name and title ARSS STONES PVT LTD
(abbreviated as ARSSSPL) in the year 2000 AD duly registered with the Registrar of
Companies Orissa. Within a span of two years i.e. in 2002 we ventured into the field of
construction of Major Bridges on well foundation.
ARSS Infrastructure Projects Limited (abbreviated as “ARSS.”) an ISO 9001:2008
company was incorporated on Seventeenth May, Two Thousand (17th May, 2000)
under the jurisdiction of the Registrar of Companies, Orissa. Since then it has
established itself as a leading construction company in the field of Rail Infrastructure
Development mainly in the State of Orissa. Now has expanded its field of activities in
the state of Chhatisgarh under the Zonal jurisdiction of East Coast Railway, South
Eastern Railway, South East Central Railway, Northern Railway and Western Railway
since last two years
The company achieved a turnover of Rs. 312.00 crores within a short period upto
2007-2008 years, due to the determined effort. The turnover increased manifolds
during 2008-09 is Rs 628.24 crores and expected to touch turnover of Rs.1000 crores in
2009-10.
Vision
The Vision is to be a large respected global player in the infrastructure development
sector by creating quality integrated facilities in the country, who will be always
thinking for excellence to satisfy its customer and enhancing shareholder's wealth.
Inspired by the company innovative construction services in the national level and even
across the globe. Innovation and commitment are the two ingredients of ARSS group.
ARSS will attract, develop and sustain best talents in the industry. Will continue to
focus on the culture of trust and provide continuous learning opportunities, while
meeting expectation of employees, stakeholders and social community.
Mission
The mission is to focus the company interest in developing railway infrastructure
through effective use of new ideas & technology to become a major player in this
sector. The company dedicates us for optimum utilization to enrich and enhance the
quality of human life, while seeing the company to conquer new horizon and new
heights. Also it will be our mission to diversify in marine, gas & oil pipelines system
and airport projects. ARSS will no longer remain limited in domestic projects and
aspire to spread our wings for global projects.
Major Projects Completed:
Rail Projects:
The company is associated with Indian Railways since last seven years and had the
opportunity of executing every type of work mentioned above starting from survey
design to final commissioning of rail track even on EPC (Engineering, Procurement,
and Construction) basis as well as for allied infrastructure like electrification, signaling,
service, buildings, etc.
Road Projects:
In rural India the roads are not in a good state of condition the degraded road are not
conducive for transportation. Although the company has developed the managerial
expertise for improvement of the condition of the roads, they also provide solution
to traffic problem for the roads ultimately resulting a change.
Urban Projects:
Urban infrastructure is one area, which for years has not received the due attention from
policymakers. Over the last fifty years, while the country’s population has grown by 2.5
times, in the urban areas it has grown by five times. It is estimated that by the turn of the
millennium 305 million Indians shall be living in nearly 3,700 towns and cities spread
across the length and breadth of the country. This would be nearly 30 per cent of
country’s total population. This likely scenario increases the emphasis on urban
infrastructure. Urban infrastructure consists of drinking water, sanitation, sewage
systems, urban transport, primary health services, and environmental regulation. The
rising urban population is continuing to strain infrastructure services in these areas.
Marine Projects:
ARSS staff members have not gained enough experience in management and
performance of marine research programs providing services to the clients with quality
products designed specifically for use in environmental decision making. The expertise
to perform computer-intensive analyses encompassing data-management, statistics,
marine geology, physical oceanography, marine acoustics, fluid dynamics, sediment-
transport, modeling, and time.
Bridge Works:
Bridges and Flyovers are an integral part of any Road and Rail Network. But
constructions of Major Bridges are occasionally taken up independently.ARSS has
made contribution in execution of Bridges and Flyovers not only in the State of Orissa
but in Chhattisgarh, Chennai, Kerela and other States.
List of Major Works Completed:
Major Bridges constructed by ARSS:
1. Construction of sub-structure consisting of Pile and open foundation, piers,
abutments and other ancillary works for 5 major bridges. CA
No./IRCON/RVNL.RBRP/Major Bridges between Rajathagarh -Barang.
2. Construction of Road Over Bridge of Punamagate Railway level crossing
including the approaches on Bhubaneswar of R.D.
3. Construction of Steel Girder Bridge (30.5m span)in the work "Railway Siding
from Gatora to In plant yard (KM 0.963 to KM 12.880) for NTPC-SIPAT
SSTPP PKG-1"
4. Construction four ROB's in the Railway Siding from Gatora to Inplant for NTPC
Sipat(total 4 nos. of ROB).
Major clients of the company:
It is true that significant portion of the company’s business comes from customers who
have been entrusting us repeat business. This is totally due client's satisfaction and
confidence relied on us based on our providing the services.
From time to time, the company’s customers have pruned or
increased their budgets for Construction services on a year-on-year
basis. The company valued customers are;
GOVT. OF ORISSA
GOVT. OF HARYANA
RAIL VIKASH NIGAM LIMITED
RITES LIMITED
IRCON INTERNATIONAL LIMITED
NATIONAL THERMAL POWER CORPORATION(NTPC)
NATIONAL HIGHWAY AUTHORITY OF INDIA
ESSEL MINING
DAMODAR VALLEY CORPORATION
EAST COAST RAILWAY
TAMIL NADU INDUSTRIAL ROAD
INFRASTRUCTURE CORPORATION LTD.
JINDAL STEEL AND POWER LTD.
VISHAKPATNAM STEEL PLANT
ROURKELA STEEL PLANT
Social Responsibilities:
ARSS infrastructure projects ltd a well known name in the state of Orissa in the field of
infrastructure
Development activity
Health-check up & donation
Employee safety programmes & recreational facilities
Creating good & conductive environment
Achievements
Within a short span, ARSS emerged as one of the leading Infrastructure
developer not only in the Eastern India but also in Southern and North-Western
India spreading over in 14 States and executing projects with outstanding
quality, reliability, affordability, eco-friendliness and efficient service.
ARSS’S Construction activity is integral to the industrial development and
involves construction of urban infrastructure, townships, highways, bridges,
railroads, river valleys and power connected projects. The infrastructure industry
globally has witnessed tremendous growth in the past few years. A significant
part of the global engineering construction activity is concentrated in the oil and
gas industry, the power sector, roads construction and is dominated by few
industry majors.
The Company is operating in a competitive market but the credential, capability
and decades of experience in construction sector sets it apart from its
competitors. Today our organisation is one of the leading Civil Engineering
Construction Company in Eastern, Southern and North-Western India. Our
credentials are reflected in its project portfolio – diverse and successful. Our
company possesses special expertise in constructing Bridges, Rail Roads, and
Highways & Flyovers.
Management
Executive
MR. SUBASH AGARWAL (CHAIRMAN)
MR. RAJESH AGARWAL (MANAGING DIRECTOR)
MR. S. K. PATTANAIK (DIRECTOR FINANCE)
MR. S. S. CHAKRABORTY (DIRECTOR TECHNICAL)
Non-Executive
DR. B. SAMAL (INDEPENDENT DIRECTOR)
MR. S. C. PARIJA (INDEPENDENT DIRECTOR)
MR. S. R. CHAUDHURI (INDEPENDENT DIRECTOR)
MR. DIPAK KUMAR DEY (INDEPENDENT DIRECTOR)
CHAPTER-3
THEORITICAL FRAMEWORK
THEORITICAL FRAMEWORK
Performance appraisal is one of the important functioning of personnel
department for the systematic evaluation of employee's performance in a job in terms
of its requirements and his potential for future development. It is the process through
which an individual employee's behavior and accomplishments for a fixed period of
time are measured and evaluated.
Employee appraisal techniques are said to have used for the first time during
the First World War, when, at the instance of Walter Dill Scott. The US Army
adopted the "Man-to-Man" rating system for evaluating military personnel. Those
merit rating programme based on the personality trait, continued up to the mid-fifties.
In the early fifties, however, attention began to be devoted to the performance
appraisal of technical, professional and managerial personnel.
In course of time considerable changes had taken place in the philosophy and
technique of appraisal of employees. As time progressed appraisal system developed
from its most restricted scope of rating of hourly paid employees to the top level
personnel of the organisation. With a great deal of study and experiments in various
organisations appraisal system and goal setting are given more importance than the
assessment of personality trait and deficiencies. In this regard, various labels have
been applied to formal process of evaluation such as merit rating, behavioral
assessment, employee evaluation, personnel, review, progress report, staff assessment,
service rating and fitness report. Some personnel authorities use such concepts
interchangeably, while others interpreted some of these appraisal phrases differently.
However the term performance appraisal or evaluation is most widely used.
Flipoo says that generally the choice lies among three possible approaches:
1. A casual systematic and often haphazard appraisal. This method was commonly
used in the past.
2. The traditional and highly systematic measurement of
(i) Employee characteristics
(ii) Employee contribution or both.
3. The behavioral approach emphasizes mutual goal setting through management by
objectives (MBO) and appraisal of progress by both appraiser and appraise.
Human behavior is a complex phenomenon and individual differ in the ability
and aptitude. These differences create difference in work performance. A good
appraisal system with regular and periodic evaluation makes the top management
judging the effectiveness of personnel and need management to satisfy the needs and
aspiration of the employees and maintains the desired behavior. A sound appraisal
system is beneficial both for the person do the appraisal and the one being appraised.
Objectives of Performance Appraisal :
A good performance appraisal programme would enable the management to
introduce a highly systematic measurement of an individual contribution to the
organisational effectiveness. Such an accurate evaluation of each employee's
performance is useful to management in many ways:
1. It enables management to keep track of man's performance.
2. It serves as a guideline in determining who the promising employees and
who are margined performers.
3. It serves as a guideline to determine how much an employee should be
paid and whether or not deserves to be promoted.
4. To determine training and development needs.
5. To give employee feedback and counsel them.
6. To review performance for salary purposes.
The Purpose of Performance Appraisal:
The purpose of appraisal is to make the most effective use of its human
resources by developing them in a systematic way, in the interest of both
organisations and the individuals being appraised.
Performance appraisal is used as an instrument to control employee behavior
for rewards, punishment and threats. The greater intangible asset of any organisation,
Indian or foreign, is its people. In the emerging scenario of rapid obsolescence, only
those corporations will keep pace with the world that is serious about motivating and
adding value to their employees.
Thus, performance appraisal system helps for:
Improving the employee performance.
Development of the employee professionally.
Taking proper decisions regarding wage and salary.
Validating the personnel record and programs.
Having a proper understanding about their subordinates.
Guiding the job changes with the help of continuous ranking.
Facilitating fair and equitable compensation based on performance.
Ensuring organisational effectiveness through correcting employee for
standard and improved performance and suggesting the change in
employee behavior.
Needs of Performance Appraisal:
Performance Appraisal is being practiced in 90% of the organisations
worldwide. Self-appraisal and potential appraisal also form a part of the performance
appraisal processes.
Typically, Performance Appraisal is aimed at:
1. To review the performance of the employees over a given period of time.
2. To judge the gap between the actual and the desired performance.
3. To help the management in exercising organisational control.
4. To diagnose the training and development needs of the future.
5. Provide information to assist in the HR decisions like promotions, transfers
etc.
6. Provide clarity of the expectations and responsibilities of the functions to be
performed by the employees.
7. To judge the effectiveness of the other human resource functions of the
organisation such as recruitment, selection, training and development.
8. To reduce the grievances of the employees.
9. Helps to strengthen the relationship and communication between superior –
subordinates and management – employees.
According to a recent survey, the percentage of organisations (out of the total
organisations surveyed i.e. 50) using performance appraisal for the various purposes are
as shown in the diagram below:
The most significant reasons of using Performance appraisal are:
Making payroll and compensation decisions – 80%
Training and development needs – 71%
Identifying the gaps in desired and actual performance and its
cause -76%
Deciding future goals and course of action – 42%
Promotions, demotions and transfers – 49%
Other purposes – 6% (including job analysis and providing superior support,
assistance and counseling).
Performance appraisal is a means of telling a subordinate how he is doing and
a suggesting needed change in his behavior, attitude, skills or job knowledge letting
him know “where he stands with the boss” and is also being increasingly used as a
basis for the coaching and counseling of the individual by the supervisors.
The subordinate must
1. Know what is expected of him
2. Have an opportunity to perform.
3. Know how well he is performing.
4. Received assistance as needed and
5. Be rewarded (or penalized) on the basis of results.
Establishing Performance Standards
Communicating the Standards
Measuring the Actual Performance
Discussing Results (Providing Feedback)
Comparing the Standards
Decision Making – Taking Corrective action
PROCESS OF PERFORMANCE APPRAISAL
A. 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
organisational 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.
B. Communicating the Standards
Once set, it is the responsibility of the management to communicate the
standards to all the employees of the organisation.
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 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.
C. Measuring the Actual Performance
The most difficult part of the Performance appraisal 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.
D. Comparing the Actual with the 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 organisational performance. It includes recalling,
evaluating and analysis of data related to the employees’ performance.
E. 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.
F. 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 of Performance Appraisal:
In order to make a performance appraisal system effective and successful, an
organisation comes across various challenges and problems. The main challenges
involved in the performance appraisal process are:
1. 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
2. Create a rating instrument
The purpose of the Performance 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 organisation.
3. 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.
4. 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 employees
5. Resistance
The appraisal process may face resistance from the employees and the
trade unions for the fear of negative ratings. Therefore, the employees should be
communicated and clearly explained the purpose as well the process of appraisal.
The standards should be clearly communicated and every employee should be
made aware that what exactly is expected from him/her.
METHODS, TECHNIQUES USED FOR APPRAISING PERFORMANCE
Several method and techniques of appraisal are available for measuring the
performance of an employee. The methods and scales differ for obvious reasons.
First, they differ because of difference in job requirements, statistical requirement and
the opinions of management.
Second, they differ because of different kind of workers who are being rated, viz.,
factory workers, executives and salesman.
Third, the variations may be caused by the degree of precision attempted in an
evaluation.
Finally, they way differ because of the methods used to obtain weightings for various
traits.
Strauss and Sayles have classified performance appraisal methods into
traditional and modern methods. The traditional methods lay emphasis on the rating
of the individual's personality traits such as initiative, dependability, drive,
responsibility etc. On the other hand modern methods place more emphasis on the
evaluation of work methods of job achievements - than on personality traits.
Ranking. - The term ranking has been used to describe an alternative
method of performance appraisal where the supervisor has been asked to order his or
her employees in terms of performance from highest to lowest.
Forced Choice Method. - This appraisal method has been developed to
prevent evaluators from rating employees to high. Using this method, the evaluator
has to select from a set of descriptive statements, statements that apply to the
employee. The statements have been weighted and summed to at, effectiveness index.
Forced Distribution. - The term used to describe an appraisal system
similar to grading on a curve. The evaluator had been asked to rate employees in
some fixed distribution of categories. One way to do this has been to type the name of
each employee on a card and ask the evaluators to sort the cards into piles
corresponding to rating.
Paired Comparison. - The term used to describe an appraisal method for
ranking employees. First, the names of the employees to be evaluated have been
placed on separate sheets in a pre-determined order, so that each person has been
compared with all other employees to be evaluated. The evaluator then checks the
person he or she felt had been the better of the two on the criterion for each
comparison. Typically the criterion has been the employees over all ability to do the
present job. The number of times a person has been preferred is tallied, and the tally
developed is an index of the number of preferences compared to the number being
evaluated.
Graphic Rating Scale. - The term used to define the oldest and most
widely used performance appraisal method. The evaluators are given a graph and
asked to rate the employees on each of the characteristics. The number of
characteristics can vary from one to one hundred. The rating can be a matrix of boxes
for the evaluator to check off or a bar graph where the evaluator checked off a
location relative to the evaluators rating.
Checklists. - The term used to define a set of adjectives or descriptive
statements. If the rater believed the employee possessed a trait listed, the rater
checked the item; if not, the rater left the item blank. rating score from the checklist
equaled the number of checks.
Behavioral Anchored Rating Scales. - The term used to describe a performance
rating that focused on specific behaviors or sets as indicators of effective or ineffective
performance, rather than on broadly stated adjectives such as "average, above average, or
below average". Other variations were:
Behavioral observation scales
Behavioral expectations scales
Numerically anchored rating scales
Critical Incident Technique. - The term used to describe a method of performance
appraisal that made lists of statements of very effective and very ineffective behavior for
employees. The lists have been combined into categories, which vary with the job. Once the
categories had been developed and statements of effective and ineffective behavior had been
provided, the evaluator prepared a log for each employee. During the evaluation period, the
evaluator recorded examples of critical behaviors in each of the categories, and the log has
been use to evaluate the employee at the end of the evaluation period.
Management by Objectives. - The management by objectives performance appraisal
method has the supervisor and employee get together to set objectives in quantifiable terms.
The appraisal method has worked to eliminate communication problems by the establishment
of regular meetings, emphasizing results, and by being an ongoing process where new
objectives have been established and old objectives had been modified as necessary in light
of changed conditions.
BENEFITS OF APPRAISAL:-
It offers a rare chance for a supervisor and subordinate to have "time out" for a one-on-one
discussion of important work issues that might not otherwise be addressed. Almost
universally, where performance appraisal is conducted properly, both supervisors and
subordinates have reported the experience as beneficial and positive.
Appraisal offers a valuable opportunity to focus on work activities and goals, to identify and
correct existing problems, and to encourage better future performance. Thus the performance
of the whole organisation is enhanced.
For many employees, an "official" appraisal interview may be the only time they get to have
exclusive, uninterrupted access to their supervisor. Said one employee of a large organisation
after his first formal performance appraisal, "In twenty years of work, that's the first time
anyone has ever bothered to sit down and tell me how I'm doing."
The value of this intense and purposeful interaction between a supervisors and subordinate
should not be underestimated.
Performance appraisal can have a profound effect on levels of employee motivation and
satisfaction - for better as well as for worse.
Performance appraisal provides employees with recognition for their work efforts. The power
of social recognition as an incentive has been long noted. In fact, there is evidence that
human beings will even prefer negative recognition in preference to no recognition at all.
If nothing else, the existence of an appraisal program indicates to an employee that the
organisation is genuinely interested in their individual performance and development. This
alone can have a positive influence on the individual's sense of worth, commitment and
belonging.
The strength and prevalence of this natural human desire for individual recognition should
not be overlooked. Absenteeism and turnover rates in some organisations might be greatly
reduced if more attention were paid to it. Regular performance appraisal, at least, is a good
start.
Training and Development
Performance appraisal offers an excellent opportunity - perhaps the best that will ever occur -
for a supervisor and subordinate to recognize and agree upon individual training and
development needs. During the discussion of an employee's work performance, the presence
or absence of work skills can become very obvious - even to those who habitually reject the
idea of training for them.
Performance appraisal can make the need for training more pressing and relevant by linking it
clearly to performance outcomes and future career aspirations.
From the point of view of the organisation as a whole, consolidated appraisal data can form a
picture of the overall demand for training. This data may be analyzed by variables such as
sex, department, etc. In this respect, performance appraisal can provide a regular and efficient
training needs audit for the entire organisation.
Recruitment and Induction
Appraisal data can be used to monitor the success of the organisation's recruitment and
induction practices. For example, how well are the employees performing who were hired in
the past two years. Appraisal data can also be used to monitor the effectiveness of changes in
recruitment strategies. By following the yearly data related to new hires (and given sufficient
numbers on which to base the analysis) it is possible to assess whether the general quality of
the workforce is improving, staying steady, or declining.
Employee Evaluation
Though often understated or even denied evaluation is a legitimate and major objective of
performance appraisal. But the need to evaluate (i.e., to judge) is also an ongoing source of
tension, since evaluative and developmental priorities appear to frequently clash. Yet at its
most basic level, performance appraisal is the process of examining and evaluating the
performance of an individual.
Though organisations have a clear right - some would say a duty - to conduct such
evaluations of performance, many still recoil from the idea. To them, the explicit process of
judgment can be dehumanizing and demoralizing and a source of anxiety and distress to
employees.
It is been said by some that appraisal cannot serve the needs of evaluation and development at
the same time; it must be one or the other.
But there may be an acceptable middle ground, where the need to evaluate employees
objectively, and the need to encourage and develop them, can be balanced.
THE PROBLEMS AFFECTING PERFORMANCE APPRAISAL:
i) The Halo Effect:
The tendency of the evaluators to base assessments of all individual characteristics on the
raters' overall impression of the person being evaluated is termed as the “Halo Effect”.
ii) Bias:
The appraiser may be biased for several reasons such as regional or religious backgrounds,
social or interpersonal conflicts.
iii) Inflation of Ratings:
There is a tendency to inflated ratings, which at times, happens overtime, or it may even
happen at all times with same raters.
iv) Central Tendency:
This is the tendency to avoid using the extremes of rating scales and to cluster the ratings
around the midpoint.
v) Leniency Error:
This occurs when the rater artificially assigns all or a certain group of employees’ high
performance ratings and all or certain scores cluster at top levels of the management scales.
vi) Strictness Error:
This occurs when the rater artificially assigns all or certain groups of employees low
performance ratings, and all or certain scores cluster at the button levels of measurement
scales.
vii) Horns Effect:
In this case a rater always rates his subordinate lower than their actual performance. If the
expectation of the rater is very high, he expects his subordinates to perform extra-ordinary
and if he is not satisfied with the performance he rates lower than what the rating should be.
viii) Organisational Leadership:
The style of leadership is an important determinant of an effective performance appraisal
system. It is the effective leadership, which motivate the entire organisation for better
performance but of the opposite condition exists, then appraisal system is considered as an
imposition and structure.
GUIDELINES FOR SUCCESSFUL APPRAISAL
If a performance appraisal System is intended to be successful it is necessary to take
precautions, so that some of the limitations can be eliminated while some other can be
minimized to a great extent.
The success of an appraisal scheme based on the following factors:
i) Both appraiser and the appraise should understand the scheme that it is for their
growth and development.
ii) Existence of an atmosphere of confidence and trust facilities, interaction for mutual
benefits.
iii) The emphasis should be given on "what he achieved" that "what a man does".
iv) A post appraisal interview and counseling should be arranged so that employees can
know where they stand and increase mutual understanding.
v) Which particular technique is to be adopted for the appraisal should be governed by
such factors as financial resources, philosophy and objectives of an organisation?
vi) To evaluate the appropriateness of any performance evaluation system, it would be
necessary to keep in view all the necessary and sufficient condition for such a
system to work effectively after it is evolved. There are several behavioral pre-
conditions which are to be kept in mind.
CHAPTER-4
PERFORMANCE APPRAISAL
ATARSS INFRASTRUCTURE
PROJECTS LTD
PERFORMANCE APPRAISAL AT ARSS
Executive performance appraisal system of ARSS is done in a booklet consisting of
few forms as detailed below:
FORM-A: Finalizing the key task by the appraise himself.
FORM-B: Performance review by the Reporting Officer in consultation with Appraise to set
up key tasks for the financial year.
FORM-C1: Performance Review for the achievement of set target during 1st week of July.
FORM-C2: Performance Review for the achievement of set target during 1st week of
January.
FORM-D1: Review of Appraisee’s target achievement with reference to form B.C1 & C2 by
the Reporting Officer as well as Reviewing Officer.
FORM-D2: Assessment of Appraisee’s managerial skill appraisal leading performance &
potential factor by the Reporting & Reviewing Officer.
FORM-D3: Assessment of Appraisee’s managerial skill appraisal leading to performance
and potential factor by Reporting and Reviewing Officer.
FORM-E: Appraisee’s final assessment by the appraisal cell with reference to the specified
weight age depending upon his grade.
FORM-F: Overall comments on Appraisee’s performance by Senior Executives.
#Reporting officer, Reporting officer (F) and Reviewing Officer will independently rate the
managerial skills.
#Reporting officer & Reviewing officer will independently rate the concerned appraise on
achievement of key tasks.
#Percentage of achievement and comments of the Reporting officer are to be shown to the
concerned Appraisee in Form D1.
LEVEL OF REPORTING OFFICER, REVIEWING OFFICER AND
HIGHER AUTHORITY:
The level of reporting officer and higher authority in respect of different levels
of appraise will be as under:
1. Reporting Officer: The executive next higher in rank and grade not below the
level of E4 officer to whom the appraise reports. In case the executive at E3
level, is the sectional head, there concerned executive will be the reporting
officer of EO, E1 & E2 executives.
2. Reporting Officer (F): The Reporting Officer (F) is the head of the functional
area in case of the executives administratively reporting to the authority other
than his/her functional areas.
3. Reviewing Officer: The executive next higher in rank and grade to the
Reporting Officer and to whom the reporting officer reports.
In case of the reporting to the Complex Head at ED level, Reviewing Officer
will be the concerned Functional Director.
4. Higher Authority: The executive next higher in the rank and grade to the
Reviewing Officer and to whom the Reviewing Officer reports.
5. Personal staff & Directly Reporting Staff: The respective controlling officer
will be Reporting Officer of personal staff and directly reporting staff. The
Reviewing Officer and Higher Authority will be as per clause 3 & 4.
6. In case the specified levels of Officers noted above are not in position, the
next higher officer will evaluate in his/her place.
7. Accepting Authority: Appraisal Report after being routed through Higher
Authority, is to be placed before the Accepting Authority, as indicated below,
who in turn is required to pass on the Appraisal Form to the Appraisal Cell at
Corporate Office.
Level of Appraisee Level of Accepting Authority
1. E7 and above CMD
2. E5 and E6 Director
3. E3 and E4 Executive Director
4. E0, E1 and E2 General Manager
For executive reporting to CMD, ratings given by CMD, will be final and carry
100% weightage.
N.B. In case of transfer of Appraise or Reporting Officer, the Performance
Appraisal Booklet is to be handed over to the HOD under intimation to the
Appraisal Cell, Corporate Office.
MANPOWER AT ARSS INFRASTRUCTURE PROJECT LTD.
The manpower of ARSS Infrastructure Projects Ltd. consists of Executives,
Supervisors, Skilled workers and unskilled workers. The total manpower position at
its head office near about 500.Out of that 90 are Executives, 50 are Supervisors, 200
Skilled and 160 are unskilled workers.
CHAPTER-5
DATA ANALYSIS
DATA ANALYSIS
I have developed a questionnaire in consultation with my guide consisting of about 12
questions. The questionnaire has been given to about 60 executives of ARSS at
Bhubaneswar and the opinion has been collected. The data analyses are as under:
1. You think that performance appraisal system is necessary in organisation.
Question No- 1 Respondents Percentages%Strongly Agree 32 53%Agree 24 40%Neither Nor 0 0%Disagree 0 0%Strongly Disagree 4 75
Figure- 1
53%40%
7%
Strongly Agree Agree Neither NorDisagree Strongly Disagree
Above diagram 53% of employee strongly agree and 40% of the employee agree that
Performance Appraisal is necessary in the organisation.7% employee are neither agree
nor disagree that it is necessary in the organisation.
2. You are satisfied with the existing performance appraisal system.
Question No- 2 Respondents Percentages%Strongly Satisfied 28 54%Satisfied 20 38%Neither Nor 0 0%Dissatisfied 8 0%Strongly dissatisfied 4 8%
Figure – 2
54%38%
8%
Strongly Satisfied Satisfied Neither Nor Dissatisfied Strongly Dissatisfied
In the above diagram 54% of the employees strongly satisfied and 38% employees are
satisfied with their existing performance appraisal system, where 8% employees are strongly
dissatisfied with the system.
3. You think that the performance appraisal is helpful in reducing relevance among the employee.
Question No- 3 Respondents Percentages%Strongly Agree 24 40%Agree 20 33%Neither Nor 12 20%Disagree 4 7%Strongly Disagree 0 0%
Figure- 3
40%
33%
20% 7%
Strongly Agree Agree Neither NorDisagree Strongly Disagree
Above diagram 40% of employee strongly agree and 33% employee are agree with
performance appraisal is helpful in reducing relevance among the employee, 20% employee
are stay neutral and 7% employees are disagree with that.
4. You think that the performance appraisal is helpful in improving the personal skill.
Question No- 4 Respondents Percentages%Strongly Agree 32 53%Agree 12 20%Neither Nor 12 20%Disagree 4 7%Strongly Disagree 0 0%
Figure- 4
53%
20%
20% 7%
Strongly Agree Agree Neither NorDisagree Strongly Disagree
In the above diagram 53% of the employee are strongly agree and 20% agree that
performance appraisal is helpful in reducing relevance among the employee and 20% are in
neutral where 7% employees are disagree with it.
5. You think that the performance appraisal system helps to identify the strength and
weakness of the employee.
Question No- 5 Respondents Percentages%Strongly Agree 16 47%Agree 12 20%Neither Nor 8 13%Disagree 20 33%Strongly Disagree 4 7%
Figure-5
27%
20%13%
33%
7%
Strongly Agree Agree Neither NorDisagree Strongly Disagree
In the above diagram 27% employee are strongly agree and 20% agree with it that the
performance appraisal system helps to identify the strength and weakness of the employee,
where as 13% neither agree nor disagree and 33% employees and 7% employees are disagree
and strongly disagree .
6. You think that the performance rating is helpful for management to provide counseling.
Question No- 6 Respondents Percentages%Strongly Agree 20 33%Agree 24 40%Neither Nor 12 20%Disagree 4 7%Strongly Disagree 0 0%
Figure-6
33%
40%
20% 7%
Strongly Agree Agree Neither NorDisagree Strongly Disagree
Above diagram 33% employees are strongly agree and 40% employees are agree that the
performance rating is helpful for management to provide counseling, 20% employees are
neutral and 7% employees are disagree.
7. You think that promotion should be purely based on performance appraisal.
Question No- 7 Respondents Percentages%Strongly Agree 16 27%Agree 24 40%Neither Nor 12 20%Disagree 8 13%Strongly Disagree 0 0%
Figure- 7
27%
40%
20%
13%
Strongly Agree Agree Neither NorDisagree Strongly Disagree
In the above diagram 27% employees are strongly agree and 40% employee are agree with
that promotion should be purely based on performance appraisal,20% employees are neither
agree nor disagree and 13% employees are disagree with it.
8. You think that pay fixation should be as per performance rating.
Question No- 8 Respondents Percentages%Strongly Agree 36 60%Agree 16 27%Neither Nor 8 13%Disagree 0 0%Strongly Disagree 0 0%
Figure-8
60%
27%
13%
Strongly Agree Agree Neither NorDisagree Strongly Disagree
In the above diagram 60% employees are strongly agree and 27% employees are agree that
pay fixation should be as per performance rating but 13% employees are neither agree nor
disagree.
9. You think that performance appraisal increases employee’s motivation and morale.
Question No- 9 Respondents Percentages%Strongly Agree 24 40%Agree 16 27%Neither Nor 8 13%Disagree 8 13%Strongly Disagree 4 7%
Figure-9
40%
27%
13%
13% 7%
Strongly Agree Agree Neither NorDisagree Strongly Disagree
Above diagram 40% employees are strongly agree and 27% employees are agree that
performance appraisal increases employee’s motivation and morale ,but 13% employees are
in neutral and 13% employees are disagree and 7% employees are strongly disagree.
10. You think that the performance should assessed by self.
Question No- 10 Respondents Percentages%Strongly Agree 16 27%Agree 8 13%Neither Nor 16 27%Disagree 12 20%Strongly Disagree 8 13%
Figure- 10
27%
13%27%
20%
13%
Strongly Agree Agree Neither NorDisagree Strongly Disagree
Above diagram 27% employees are strongly agree and 13% employees are agree that the
performance should assessed by self, and 27% employees are neutral .20% employees are
disagree and 13% employees are strongly disagree with it.
11. You think that the performance should assessed by superior.
Question No- 11 Respondents Percentages%Strongly Agree 24 40%Agree 16 26%Neither Nor 12 20%Disagree 4 7%Strongly Disagree 4 7%
Figure-11
40%
27%
20%
7%7%
Strongly Agree Agree Neither Nor Disagree Strongly Disagree
Above diagram 40% employees are strongly agree and 26% employees are agree that the
performance should assessed by superior but 20% employees are neither agree nor disagree
and 7% employees are disagree another 7% employees are strongly disagree in it.
12. You think that the performance should assessed by Independent bodies/Consultants.
Question No- 13 Respondents Percentages%Strongly Agree 8 13%Agree 16 27%Neither Nor 8 13%Disagree 12 20%Strongly Disagree 16 27%
Figure-12
13%
27%
13%20%
27%
Strongly Agree Agree Neither Nor Disagree Strongly Disagree
In the above diagram 13% employees are strongly agree and 27% employees are agree that
that the performance should assessed by Independent bodies/Consultants, 13% employees are
neutral but 20% disagree and 27% are strongly disagree in it.
SWOT ANALYSIS
A SWOT analysis must first start with defining a desired end state or objective. A SWOT
analysis may be incorporated into the strategic planning model. Strategic Planning has been
the subject of much research. SWOT analysis is just one method of categorization and has its
own weaknesses. For example, it may tend to persuade companies to compile lists rather than
think about what is actually important in achieving objectives. It also presents the resulting
lists uncritically and without clear prioritization so that, for example, weak opportunities may
appear to balance strong threats.
SWOT is a planning tool used to understand the Strengths, Weaknesses, Opportunities, and
Threats involved in a project or in a business. It involves specifying the objective of the
business or project and identifying the internal and external factors that are supportive or
unfavorable to achieving that objective. SWOT is often used as part of a strategic planning
process.
The SWOT analysis framework has gained widespread acceptance because it is both simple
and powerful for strategy development. However, like any planning tool, SWOT is only as
good as the information it contains. Thorough market research and accurate information
systems are essential for the SWOT analysis to identify key issues in the environment.
Strengths:
The performance appraisal system strengthens the superior-subordinate
relationship in the organisation.
The online appraisal system is easily accessible from anywhere and also at any
time.
The employees always aware of their weak areas in their performance.
Weakness:
The performance rating depends on the of the superiors.
A 360-degree appraisal cannot be provided to the employees.
Opportunities:
The appraisal system gives a chance to change the policies by considering the
performance level of the employees.
The employees get a better chance to express their efficiency in front of their
superiors.
Threats:
The appraisal system may sometime make bigger gap between the employees.
A poor performance of the employees raises questions on the performance of
the appraiser.
CHAPTER-6
FINDINGSAND
SUGGESTIONS
FINDINGS:
From the survey at ARSS, I have collected some data regarding performance
appraisal that it is done on annually basis.
It is also found that employees are generally appraised by their immediate
supervisors.
Performance Appraisal is necessary for the employees.
From above data it is found that the Performance Appraisal leads to
identification of hidden potential of the employees.
Performance Appraisal helps to achieve the goals of the organisation.
Performance Appraisal helps to identify the training need.
It is also found that performance appraisal is linked with promotion.
It is also found that the performance appraisal does not help in increasing the
salary or any other incentives.
It is also found that the feedback is given only when it is required.
Generally people agree that performance appraisal helps to motivate
employees.
Performance Appraisal helps in polishing the skills of employee.
A jealousy is one of the obstacles.
Performance Appraisal also helps to create good communication between
appraisers and appraise.
Generally people are satisfied with the evaluation system made in
organisation.
Performance Appraisal process helps to improve the performance of the
employees.
Most of the employees said that if they want to review the current
performance appraisal system.
SUGGESTIONS:
Proper judgment about performance parameter will motivate the employee to
lead the plant productivity.
Proper training should be given to develop the skill of the employee to achieve
the target setting by the employers.
Performance appraisal should be used for increasing the salary of the
employees.
Individuals should be measured not against targets given to them but their
potential should be measured for which a little better system should be
developed.
360 degree performance appraisal should be given advantage.
CHAPTER-7
CONCLUSION
CONCLUSION:
Performance Appraisal refers to the assessment of an employee’s actual
performance, behavior on jobs, and his or her potential for future performance.
Appraisal has several objectives but the main purposes are to assess training needs, to
effect promotions, and to give pay increases.
Appraisal of performance proceeds in a set pattern. The steps involved are
defining appraisal objectives, establishing job expectations, designing the appraisal
programme, conducting performance interview, and using appraisal data for different
HR activities.
Performance appraisal is systematic and objective way of evaluating both
work related behavior and potential of employees. It should be carried out in an
objective manner. In order to get best result of performance appraisal the CEO of
every organisation should create a culture of excellence that motivates employee at all
level and also encourage team work.
In recent times, leading Indian companies like Philips, Glaxo , Cadbury,
Sandoz have all redesigned their system shifting from a pure performance orientation
to a potential-cum-performance based appraisal system. Mostly performance appraisal
system always depends upon a consistent approach.
So, we may conclude that Performance Appraisal is very much essential for
an organisation by which the performance of the employees can be evaluated and
effective training can be given to them for better performance.
CHAPTER-8
BIBLIOGRAPHY
BOOKS
Kothari C.R., “Research Methodology” New Age International (P) Ltd, Publishers 7 th
edition 2009.
Suba Rao P., “Human Resource Management and Industrial Relations” Himalaya Publishing House, Mumbai, 3rd edition 2008.
Dessler Gray, “Human Resource Management” PHI, New Delhi, 11th edition 2008.
Rao V.S.P, “Human Resources Management text and cases “Excel Books”, New Delhi, 2nd edition 2005.
Company’s Manuals of ARSS.
Web Portals Visited:
www.arss.com
http://www.businessballs.com/performanceappraisals.htm
http://www.humanresources.hrvinet.com/performance-appraisal-methods/
A SURVEY ON PERFORMANCE APPRAISAL OF ARSS INFRASTRUCTURE
PROJECT LTD.
BY
KIRTY RANJAN NAYAK
TRIDENT ACADEMY OF TECHNOLOGY
REGD. NO: 0906289022
Employee Name-................................................................................................................
Sl No-............ Designation............................................... Age............Salary..................
Questionnaire
[Please put tick mark (√) in appropriate place.]
1. Do you think that performance appraisal system is necessary in organisation?
I. Strongly Agree
II. Agree
III. Neither Nor
IV. Disagree
V. Strongly Disagree
2. Are you satisfied with the existing performance appraisal system?
I. Strongly Satisfied
II. Satisfied
III. Neither Satisfied Nor Dissatisfied
IV. Dissatisfied
V. Strongly Dissatisfied
3. Do you think that the performance appraisal is helpful in reducing relevance among
the employee?
I. Strongly Agree
II. Agree
III. Neither Nor
IV. Disagree
V. Strongly Disagree
4. Do you think that the performance appraisal is helpful in improving the personal
skill?
I. Strongly Agree
II. Agree
III. Neither Nor
IV. Disagree
V. Strongly Disagree
5. Do you think that the performance appraisal system helps to identify the strength and
weakness of the employee?
I. Strongly Agree
II. Agree
III. Neither Nor
IV. Disagree
V. Strongly Disagree
6. Do you think that the performance rating is helpful for management to provide
counselling?
I. Strongly Agree
II. Agree
III. Neither Nor
IV. Disagree
V. Strongly Disagree
7. Do you think that promotion should be purely based on performance appraisal?
I. Strongly Agree
II. Agree
III. Neither Nor
IV. Disagree
V. Strongly Disagree
8. Do you think that pay fixation should be as per performance rating?
I. Strongly Agree
II. Agree
III. Neither Nor
IV. Disagree
V. Strongly Disagree
9. Do you think that performance appraisal increases employee’s motivation and
morale?
I. Strongly Agree
II. Agree
III. Neither Nor
IV. Disagree
V. Strongly Disagree
10. Do you think that the performance should assessed by self?
I. Strongly Agree
II. Agree
III. Neither Nor
IV. Disagree
V. Strongly Disagree
11. Do you think that the performance should assessed by superior?
I. Strongly Agree
II. Agree
III. Neither Nor
IV. Disagree
V. Strongly Disagree
12. Do you think that the performance should assessed by Independent
bodies/Consultants?
I. Strongly Agree
II. Agree
III. Neither Nor
IV. Disagree
V. Strongly Disagree
13. Suggestion if any:-................................................................................................
................................................................................................
Signature
top related