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Preface

Performance Appraisal is very important in the hand of HR in the organization. Through

performance appraisal employees can be helped to understand their weaknesses and their hidden

potentials

The results of performance appraisal can help in determining the incentives, rewards, promotion,

corrective actions etc.

Therefore this study will be helpful to FAG BEARINGS LTD. in making the existing

performance appraisal system more effective and efficient.

Performance appraisal also helps in identifying the training needs of employees.

Today, because of globalization, companies are under tremendous pressure to improve quality,

cut down waste and ultimately reduce their cost of production for more profitability.

The performance appraisal is an attempt to clarify the employees regarding their work tasks,

goals and also making them accountable for their achievements.

ACKNOWLEDGEMENTS

I thank Dr. Bigi Thomas, Dean, department of Social Work, v.v nagar, for her encouragement and

sustained interest in the study.

I would also like to thank my family for their constant support and encouragement

I would like to express my gratitude to Mr. jayprakashnair for giving me permission to make my research

in FAG BEARINGS LTD.

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I would also like to thank the respondents who made this research possible.

I express my profound gratitude to my research guide Ms. Shivani Mishra for his valuable guidance and

encouragement.

. Finally I would also like to thank all my friends and colleagues.

- RANJITSINGH GILL

INDEX

SR.

NO

TOPIC PAGE

NO.

1. ACKNOWLEDGEMENT I

2. PREFACE II

3. LIST OF TABLES III

4. CHAPTER I: INTRODUCTION 7

5. CHAPTER II : REVIEW OF LITERATURE 28

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6. CHAPTER III:RESEARCH METHODOLOGY 43

7. CHAPTER IV: RESEARCH SETTING 47

8. CHAPTER V : DATA ANALYSIS &

INTERPRETATION

70

9. CHAPTER VI : FINDINGS, CONCLUSION &

SUGGESTIONS

106

10. BIBLIOGRAPHY IV

11. APPENDIX V

INDEX

OF

TABLES

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TABLE

NO.

NAME OF TABLE PAGE

NO.

1 Showing Age of respondents. 70

2 Showing the education of respondents. 71

3 Experience of respondents 72

4 Showing that the appraisal system provides an opportunity

for each appraise to have a clear understanding what isexpected from by is reporting officer and the organization.

73

5 Showing that appraisal system helps a clear joint

understanding of each appraise’s job.

74

6 Showing that appraisal system helps manager to plan their

performance.

75

7 Showing that appraisal system provides an opportunity to

appraise and communicate with the superiors to perform his

job well.

76

8 Showing that appraisal system provides an opportunity for

self review and reflection

77

9 Showing that appraisal system encourages the appraiser and

appraise to have common understanding affecting the

performance.

78

10 Showing that appraisal system provides an opportunity for a

discussion between the appraiser and appraise for

achievement, failures and improvement required.

79

11 Showing that appraisal system has scope for an each

appraise on the personality factor and attributes required for

the current job.

80

12 Showing that appraisal system encourages open

communication between each appraiser and appraise.

81

13 Showing that appraisal system provides an opportunity for

each appraise to express his developmental needs.

82

14 Showing that appraisal system has scope for correcting the biases of reporting officer through review process.

83

15 Showing that appraisal system aims at strengthening

appraiser – appraise relationship

84

16 Showing that appraisal system helps appraise to gain more

insights into their strengths and weakness.

85

17 Showing that appraisal system has scope for helping each

employee to discover his potential.

86

18 Showing that appraisal system has scope for communicatingtop management plans and business goals to staff below.

87



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INTRODUCTION

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History

The history of performance appraisal is quite brief. Its roots in the early 20th century can be

traced to Taylor’s pioneering time and Motion Studies. But this is not very helpful for the same

may be said about almost everything in the field of modern human resource management.

As a distinct and formal management procedure used in the evaluation of work performance,

appraisal really dates from the time of the Second World War – not more than 60 years ago.

Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of historical

things, it might well lay claim to being the World’s Second Oldest Profession!

There is, says Dulewicz(1989). “… basic human tendency to make judgments about those one is

working with, as well as about oneself.” Appraisal, it seems, is both inevitable and universal. In

the absence of a carefully structured system of appraisal, people will tend to judge the work

performance of others, including subordinates, naturally, informally and arbitraliy.

The human inclination to judge can create serious motivational, ethical and legal problems in the

workplace. Without a structured appraisal system, there is little chance of ensuring that the

judgments made will be lawful, fair, defensible and accurate.

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 outcomes. 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.

Little consideration, if any, was given to the development possibilities of appraisal. If was felt

that a cut in pay, or a rise, should provide the only required impetus for and employee to either

improve or continue to perform well.

Sometimes this basic system succeeded in getting the results that were intended; but more often

than not, if failed.

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For Example, early motivational researchers were aware that different people with roughly equal

work abilities could be paid the same amount of money and yet have quite different levels of

motivation and performance.

These observations were confirmed in empirical studies. Pay rates were important, yes; but they

were not the only element that had an impact on employee performance. It was found that other

issues, such as morale and self-esteem, could also have a major influence.

As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s

in the United States, the potential usefulness of appraisal as a tool for motivation and

development was gradually recognized. The general model of performance appraisal, as it is

known today, began from that time.

MODERN 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 weakness and strengths as well as opportunities for improvement and skills

development.

In many organizations – but not all – appraisal results are used, either directly or indirectly, to

help determine reward outcomes. That is, the appraisal results are used to identify the better

performing employees who should get the majority of available merit pay increases, bonuses and

promotions.

By the same token, appraisal results are used to identify the poorer performers which may

require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay.

(Organizations need to be aware of laws in their capacity to dismiss employees or decrease pay.)

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Whether this is an appropriate use of performance appraisal – the assignment and justification of

rewards and penalties – is a very uncertain and contentious matter.

CONTROVERSY, CONTROVERSY

Few issues in management stir up more controversy than performance appraisal.

There are many reputable sources – researchers, management commentators, psychometricians

who have expressed doubts about the validity and reliability of the performance appraisal

process. Some have even suggested that the process is so inherit flawed that it may be impossible

to perfect it (see Derven, 1990, for example).

At the other extreme, there are many strong advocates of performance appraisal. Some view it as

potentially”… the most crucial aspect of organizational life” (Lawrie, 1990).

Between these two extremes lie various schools of belief. While all endorse the use of

performance appraisal, there are many different opinions on how and when to apply it.

There are those, for instance, who believe that performance appraisal has many important

employees development uses, but scorn any attempt to link the process to reward outcomes –

such as pay rises and promotions.

This group believes that the linkage to reward outcomes reduces or eliminates the development

value of appraisals. Rather then an opportunity for constructive review and encouragement, the

reward linked process is perceived as judgmental, punitive and harrowing.

For Example, how many people would gladly admit their work problems if, at the same time,

they knew that their next pay rise or a much wanted promotion was riding on an appraisal result?

Very likely, in this situation, many people would deny or downplay their weaknesses.

Nor is the desire to distort or deny the truth confined to the person being appraised. Manyappraisers feel uncomfortable with the combined role of judge and executioner.

Such reluctance is not difficult to understand. Appraisers often know their appraises well, and are

typically in a direct subordinates- supervisor relationship. They work together on a daily basis

and may, at times mix socially. Suggesting that a subordinate need to brush up on certain work

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skills is one thing giving an appraisal result that has the direct effect of negating a promotion is

another.

The result can be resentment and serious morale damage, leading to workplace disruption,

soured relationships and productivity declines.

On the other hand, there are strong rival argument which claims that performance appraisal must

unequivocally be linked to reward outcomes.

The advocates of this approach say that organizations must have a process by rewards – which

are not an unlimited resource - may be openly and fairly distributed to those most deserving on

the basis of merit. Effort and results.

There is a critical need for remunerative justice in organizations. performance appraisal –

whatever its practical flaws – is the only process available to help achieve fair, decent and

consistent reward outcomes.

Is has also been claimed that appraises themselves are inclined to believe that appraisal results

should be linked directly to reward outcomes – and are suspicious and disappointed when told

this is not the case. Rather than feeling relieved, appraises may suspect that they are not being

told the whole truth, or that the appraisal processes is a sham and waste of time.

THE LINK TO REWARDS

Research (Bannister &Balkin, 1990) has reported that appraises seem to have greater acceptance

of the appraisal process, and feel more satisfied with it, when the process directly linked to

rewards. Such findings are a serious challenge to those who feel that appraisal results and reward

outcomes must be strictly isolated from each other.

There is also a group who argues that the evaluation of employees for reward purposes, and

frank communication with them about their performance, are part of the basic responsibilities of

the management. The practice o not discussing reward issues while appraising performance is,

say critics, based on inconsistent and muddled ideas of motivation.

In many organizations, this inconsistency is aggravated by the practice of having separate wage

and salary reviews, in which merit raises and bonuses are decided

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Arbitrarily, and often secretly, by supervisors and managers.

BASIC PURPOSES

Effective performance appraisal systems contain two basic systems operating in conjunction; an

evaluation system and feedback system.

The main aim of the evaluation system is to identify the performance gap (if any.

This gap is the shortfall that occurs when performance does not meet the standard set by the

organization as acceptable.

The main aim of the feedback system is to inform the employee about the quality of his or

performance. (However, the information flow is not exclusively one way. The appraisers also

receives feedback from the employee about job problems. Etc.

One of the best ways to appreciate the purposes of performance appraisal is to look at it from the

different viewpoints of the stakeholders; the employee and the organization.

EMPLOYEE VIEWPOINT

From the employee viewpoint, the purpose of performance appraisal is four-fold:

1. Tell me what you want me to do

2. Tell me how well I have done it

3. Help me improve my performance

4. Reward me for doing well.

ORGANIZATIONAL VIEWPOINT

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Form the organization’s viewpoint, one of the most important reasons for having a systems of

performance appraisal is to establish and uphold the principle if accountability.

For decades it has been known to researchers that one of the chief causes of organizational

failure is “ non-alignment of responsibility and accountability. “Non-alignment occurs where

employees are given responsibility and duties, but are not held accountable for the way in which

those responsibilities and duties are performed. What typically happens is that several

individuals or work units appear to have overlapping roles.

The overlap allows – indeed actively encourages – each individual or business unit to “pass the

buck” to the others. Ultimately, in the severely non-aligned system, no one is accountable for

anything. In this event, the principle of accountability breaks down completely. Organizational

failure is the only possible outcome.

In cases where the non-alignment is not so severe, the organization may continue to function,

albeit inefficiency. Like a poorly made of badly tunes engine, the non-aligned organization may

run, but it will be sluggish, costly and unreliable. One of the principal aims of performance

appraisal is to male people accountable. The objective is to align responsibility and

accountability at every organizational level.

BENEFITS OF APPRAISAL

Perhaps the most significant benefit of appraisal is that, in the rush and bustle of daily working

life, 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 andcorrect existing problems, and to encourage better future performance. Thus the performance of

the whole organization 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 organization

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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.

MOTIVATION AND SATISFACTION

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

organization 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 the natural human desire for individual recognition should not be

overlooked. Absenteeism and turnover rates in some organizations 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 anddevelopment 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!

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Performance appraisal can make the need for more pressing and relevant by linking it clearly to

performance outcomes and future career aspirations.

From the point of view of the organization as a whole, consolidated appraisal data can form a

picture of the overall demand for training. This data may be analysed by variables can provide a

regular and efficient training needs audit for the entire organization.

RECRUITMENT AND INDUCTION

Appraisal data can be used to monitor the success of the organization’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 evaluating the performance of an

individual.

Though organizations 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.

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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.

PERFORMANCE APPRAISAL

An organization is a group of individuals working towards achieving

predetermined goals and targets by the organization. Performance appraisal is one of the most

misused tools in managers, human resources persons share a common idea about the team

knowing little about the need for such an appraisal is that if not done offer since manager’s

supervisors, employees almost have it. The most important purpose of the appraisal is to

improve the performance of the employee. So that he performs well in future. Manager’s can get

valuable information form employee’s job more productive work units and organizations can

identify problem that interfere with every one’s work. The employee appraisal techniques are

adopted for the first time during the first World was at the instance of “Water Bill Scott” in

U.S.A. the army military personnel during the 1920-30 period. These relations to wage structure

for hourly paid workers were adopted in industrial units. Under this system the policy of giving

grade wage increments and promotion on basis of merit was accepted. And recent research

shows that at present more than three fourths of American companies have appraisal programs to

measure employee performance. Formal appraisal program has been perceived to be equally

important in Indian business and industry.

THE PERFORMANCE APPRAISAL SYSTEMS HAVE TWO TYPES :

Traditional Performance Appraisal System, which is ranking methods checking methods.

Group appraisal, man to comparison methods graphic or linear raking scale and forced choice

description methods. However, attention began to be devoted to the performance, Appraisal to

technical professional and managerial personnel. Since then because of experiments and great

deal of study.The philosophy of performance appraisal as undergone tremendous change,

consequently a change has also taken place, such as 360 appraisal management by objectives,

behaviorally anchored rating scale assessment center. Human Resources accounting and

psychological appraisal.

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The appraisal may be any person who has through knowledge about the job content, and

who observers the employee while performing the job. The appraisal should be capable of

determining what is more important and what relatively less important. He should prepare

reports and make judgment without basis. Typical appraisal is supervisors peer subordinate

employee themselves user of service and consultant performance appraisal by all parties is called

360 Performance Appraisal.

Performance appraisal is a format structured system of measuring and evaluating an

employee’s job related behavior’s and outcomes to discover how and why the employee is

presently performing on the job and how the employee can perform more effectively in the

future so that the employee organization and society all benefit.

It is on this basis of appraisal that management determines the effectiveness of the

individual and their development potentiality, permeability, training needs and career stretch. It

is considered as a feed back system in the management amour its personnel’s.

PERFORMANCE APPRAISAL METHODS :

1) Graphic Rating Scale:

This is the oldest and widely used technique, this method is also known as linear

rating scale or simple rating scale, and the appraisers are supplied with printed forms, one

for each employee. These forms contain a number of objectives, behaviors and trait based

qualifies and characters to be rated like quality and volume of work, job knowledge

dependability, initiative attitude etc, emotional stability in case of manager personnel,

these forms contains rating of scales.

2) Ranking Method:

Under this the employee are ranked from best to worst on some characteristics.

The rater first finds the employee with the highest performance and the employees with

the lowest performance in that particular job category and rates the former as the best as

the latter as the poorest.

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3) Paired Comparison Method:

This method is relatively simple under this method, the appraiser ranks the

employees by comparing one employee with all other employed in the group one at a

time.

4) Grading Method:

Under this system the rater consider certain features and marks them accordingly

to a scale; certain categories of worth are first established and carefully defined. The

selected features may be analytical ability co-operative, dependability etc, they may be A

– Outstanding, B – Very Good, C – Good or Average, D – Fair, E – Poor and F – Very

Poor or Hopeless.

5) Forced Distribution Method:

The rater may rate lost employees at the higher or at the lower end of the scale

under the earlier methods. Forced distribution method is developing to prevent the rates

from rating too high or too low under this method.

6) Checklist:

Under this method the rate does not evaluate employee’s performance, the

supplies report about the if and the final rating is done by the personnel department. A

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series of questions or presented concerning an employee to his behavior. The rater, then

checks to indicate the answer about an employee positive or negative.

7) Critical Incident Method:

Under this method, the supervisor continuously records the critical incident of the

employee performance or behavior to all characteristics both positive and negative in a

specially designed notebook. The supervisor rates the performance of his subordinate

based on notes taken by him.

8) Easy or Free from Appraisal:

The method requires the manager to write a short essay describing each

employee’s performance during the rating period. This format emphasis evaluation of

overall performance.Rather than specific job dimension by asking supervisors to

enumerate specific examples of employee behavior, the essay technique minimizes

supervisor bias the halo effect.

9) Group Appraisal:

Under this method, a group of appraisal appraises an employee; this group

consists of the immediate supervisor of the employee, to the other supervisor who has

closed the contact with the employee work manager or head of the department and

consultation. The head of the department or manager may be chair of the group and the

immediate supervisors may act as the Coordinator for the group activity then the group

appraiser the performance of the employee compares the actual performance with

standard.

10) Confidential Report:

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Under this method supervisor appraise the performance of his subordinates based

on his observations, judgment and intuitions. The supervisors keep his judgment and

report confidentially. Supervisor writes the report about his subordinate strengths,

weakness, intelligence, attitude to work, sincerity commitment and punctuality, conduct

character friendliness etc.

MODERN METHODS

• Behaviorally Anchored Rating Scales (B.A.R.S.):

The behaviorally anchored rating sales and critical incident methods. Using

B.A.R.S job behaviors from critical incident effective behavior and describes more

objectively. In this method employee who is familiar with a particular job to identify its

major components. They then rank and validate specified behaviors for each of the

components.

• Assessment Center:

This method of appraising was first applied in German Army in 1970 later

business and industry started using method. This is not a technique of performance

appraised by it. In Fact it is system or organization, where various experts do assessment

of several individuals by using various techniques, these playing case studies stimuli on,

exercise, structured, in right, transactional analysis etc.

• Human Resources Accounting:

Human resources accounting deals with cost have and contribution of human

resources to the organization. Cost of the employee includes cost of man power planning

recruitment, selection placement, training, development, wages and benefit etc employee

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contribution is the money value of service which can be measured by labor productivity

or value added by human resources.

• Management by Objectives:

Management by objectives is process whereby supervisor and subordinate

manager of an organization jointly identify its common goals, define each individual’s

major anis of responsibility in terms of results expected of him, and use these measures of

guides for operating the unit and assessing the contribution if its members, thus

management by objective focus attention on participative set goals that are tangible

veritable and measurable. The subordinate and supervisor jointly determine goals to be

accomplished during the appraisal period and what level of performance is necessary for

the subordinate to satisfactory achieve specific goals. During the appraisal period the

supervisor and subordinate update and alter as necessary due to change in the business

environment. Both supervisor and subordinate jointly discuss whether the subordinate

achieve the goal or not, if not, they should identify the reasons for deviation like strike

lock-out mark change etc.

• Psychological Appraisal: Psychological Appraisal are conducted to assess the employee

potential psychological appraisal consists of:

A. In-depth interview

B. Psychological tests

C. Consultation and discussion with the employee

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D. Discussion with the supervisor and sub-co-ordination and peers

E. Reviews and other Evaluations

360O PERFORMANCE APPRAISAL

The Appraiser may be any person who has through knowledge for account the job contents,

and who observes the employee which performing a job. The appraiser should be capable of

determining what is more important and what is relatively less important, he should prepare

reports and make judgments without bias. Typical appraisal are supervises, peers,

subordinates employees themselves, user of service and consultants performance.

Supervisor

Supervisor include supervisors of employee other supervisors having knowledge about the

work of the employee and department head or manager. General practice is that immediate

superiors’ appraisal the performance which intern is reviewed but the departmental head or

manager.

Peers :

Peers appraisal may be reliable if the work group is stable over a reasonably long period of

time and performs tasks that require interaction. However, little research has been conducted

to determine how peers establish standard for evaluating other or the overall effect of peer

appraisal on the groups attitude.

Subordinates

The concept of having superior rated by subordinate is taking used in most organization

today especially in developed countries, such as novel method can be useful in other

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organizational settings to provide the relationships between superiors and subordinates are

cordial.

Self – Appraisal

If individual understand the objective they are expected to achieve and the standards by

which they are expected to achieve and the standards by which are to be evaluated, they are

to a great extent in the best position to appraise their own performance. Also, since employee

development means self-development, employees who appraise their own performance may

become highly motivated.

Users and Service Customers :

Employee performance in service organization relating to behaviors promptness, speed in

doing job and accuracy can be better by the customers or users of services. For example,

student better judges teachers performance. And passengers better judge the performance of a

conductor in a passenger road transport.

Consultants :

Sometimes consultants may be engaged for appraisal when employees or employer do not

trust self appraisal or peer appraisal or subordinate appraisal. In this situation, consultanttrained and they observe the employee the work for sufficiently long time for the purpose of

appraisal.

540O PERFORMANCE APPRAISAL :

Performance Appraisal has been one of the best mean of evaluating every individual

workman in industry. Advancement of Technology, the performance appraisal is gaining

more importance. Performance appraisal earlier was best done with help of 360o rating scale,

which involved peer, subordinate, supervisor and consultancy.

Recently with growing importance affected Human Resource Development, training and

development of industrialist and managerial people included training needs into the

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performance appraisal system. This was done with interest of knowing each individual

workman and thereby helping into overcome the same.

With the advent of multinational companies and rapid development of Information

Technologies sector, the performance appraisal system requires a multi dimensional

approach. In this regard Mrs. HemaRavichantan Chief Human Resource Officer, of 540o

rating scales. This involved customer and the community life of the workmen in the industry

of accurate appraisal much defines on the customer satisfaction and community life if the

workman in the industry for accurate appraisal much defines on customer’s satisfaction and

community life of the workmen for the survival of the enterprise in recent times. 540o rating

scale goes step further in evaluating and appraising the workmen not only within praising

industry and also outside the praising of the industry, many thinker and Human Resource

professional have justified and approved this rating scale. Since the productivity efficiency of

workmen in industry is very much interrelated with his living condition in the society and

working condition in the industry.

REWARD ISSUES

A MANAGEMENT “TRICK”?

The separation of appraisal results and reward outcomes is, at best, contrived situation. At worst,

it may convey the impression that appraisal is some sort of deception, a trick by management,

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designed to give an appearance of openness and fairness while “real issues” like pay and

promotions are decided in secret.

Nor is the practice of putting a six-month buffer between appraisals and pay reviews an effective

method of avoiding the issue. Far better to define and clarify the relationship between appraisal,

performance and reward outcomes.

The view of the separatists, which insists that appraisal results and reward outcomes should be

insulated form each other, may be an over-reaction to the potential abuses.

There is evidence that appraises appreciate the existence of a link between appraisal and reward

results. To many, the existence of such a link is intuitively sensible.

From the perspective of the organization, the inclusion of carefully collected appraisal data in

pay and promotion matters may contribute to better quality decisions. It should also help ensure a

greater degree of congruity between appraisal results and subsequent reward outcomes.

Even so, many advocates of separation will be reluctant to concede the possibility of any form of

constructive linkage between appraisal and rewards.

This is a shame, because the potential of performance appraisal encompasses more than

employee development. Admittedly there are risks in linking reward outcomes; but there are also

risks, and a potential for harm, in contriving to deny that any linkage exists.

At the very least, an organization wishing to form the mildest of reward links might consider a

frank discussion of reward criteria during the appraisal interview.

Those organizations that are determined to keep their appraisal and reward issues separated

might ask themselves whether performance appraisal is really the tool they need. Perhaps what

they actually desire is some form of developmental appraisal

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SELF - AUDITING

According to Krein ( 1990 ) appraisers should not confront employees directly with criticism.

Rather, they should aim to let the evidence of poor performance emerge “naturally” during the

course of the appraisal interview. This is done by way of open-ended questioning techniques that

encourage the employee to identify their own performance problems.

Instead of blunt statements or accusations, the appraisers should encourage employees to talk

freely about their own impressions of their performance. For example, consider the case of

employee who has had too many absent days. The appraiser, in accusatory mode, might say:

“Your attendance record is unacceptable. You’ll have to improve it.”

A better way to handle this might be to say:

“Your attendance record shows that you had 7 days off work in 6 months. What can you tell me

about this?”

The technique is to calmly present the evidence (resisting the temptation to label it as good or

bad) and then invite the employee to comment. In many cases, with just a gentle nudge from the

appraiser here and there, an employee with problems will admit that weaknesses do exist.

This is much more likely when an employee does not feel accused of anything, nor forced to

make admissions that they do not wish to make.

If an appraiser can get an employees to the stage of voluntary admission, half the battle is won.

The technique described by Krein is a type of self-auditing, since it encourages the employee to

confront themselves with their own work and performance issues.

The technique is useful because it is more likely to promote discussion and agreement on the

need for change. Confrontation techniques that rely on “charge and counter-charge” tend to

promote adversarialism – and that leads to denial and resentment

NEED AND IMPORTANCE OF PERFORMANCE APPRAISAL

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Performance Appraisal is needed in order to.

I. Provide information about the performance ranks, decision regarding salary fixation,

confirmation, portion, transfer and demotion are taken based on performance.

II. Provide feedback information about the level of achievement and behavior of the

subordinate. This information helps to review the performance of subordinate

rectifying performance deficiencies and to set new standard of work, if necessary.

III. Provide information which help to counsel the subordinate.

IV. Provide information to diagnose deficiency in the employee regarding skill, knowledge,

determine training and development needs and to prescribe the means of employee

growth provides information for correcting placement.

Objectives of the performance Appraisal

Performance appraisal aims at attaining the different purposes. They are:

i. To create and maintain a satisfactory level of performance.

ii. To contribute to the employee growth and development through training self and

managing development programmers.

iii. To help the supervisors to have a proper understanding about their subordinates.

iv. To guide the job changes with the help to continuous ranking.

v. To facilitate fair and equitable compensation based on performance.

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vi. To facilitate for testing and validating selection tests, interview techniques through

comparing their sources with performance appraisal ranks.

vii. To provide information for making decision regarding layoff, retrenchment etc.

viii. To ensure organizational effectiveness through correcting the employee behavior.

An effective performance appraisal system must not only accurately measure current

performance levels, but also contains mechanisms for reinforcing, strengthen, identifying

weakness and feeding such interaction back to the employees in order that they may be

able to improve their performance.

IMPORTANCE OF PERFORMANCE APPRAISAL

1. Indicates performance level of employees.

2. Motivates the employees, thereby improving individual performance.

3. Basis for employees rewards is terms of monitory benefits, promotion, transfers etc.

4. Indicates the training needs and development requirements, thereby enabling the

employees to perform better.

5. Improves communication level between subordinates and supervisor.

SUBJECTIVITY AND OBJECTIVITY

Accuracy is critical to performance appraisal. In order to obtain accurate performance

information, raters must provide objective and unbiased ratings of employees. But, because it is

almost impossible to develop a perfectly accurate performance checklist, manager’s subjective

opinions are frequently called for. Many companies use some combination of subjective and

objective assessment for actual performance appraisal.

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Yet there are numerous problems in the actual assessment of employee performance, mainly due

to rater bias. Some raters tend to rate all employees at the positive end than to spread them

throughout the performance scale; this is called “Leniency. “Alternatively, “central tendency”,

which places most employees in the middle of the scale, also raises concern about possible

appraisal error.

Another common error in performance appraisal is the halo effect. This occurs when a manager’s

general impression of an employee, after observing one aspect of performance, influences his /

her judgment on other aspects of the employee’s performance.

Researchers have found that her personal preferences, prejudices, appearances, first impressions,

race and gender can influence many performance appraisals. Sometimes raters personal opinions

or political motives creep into the performance appraisal process. They intentionally inflate or

deflate performance ratings of certain employees as a way to punish them or promote them out of

the department.

But traits are not always directly related to job performance. Trait based assessment lacks

validity and thus frequently raises legal questions.

Behaviors For many jobs, performance is so broadly defined or so conceptual in nature such as

ensuring public safety in the police department that it is hard to come up with reliable

performance measures. In such cases, desirable behaviors can be identified as assessed in the

belief that such behaviors lead to successful performance. Such behavior focused assessment

encourages employees to adopt desirable behavioral patterns in the workplace.

Tank Outcomes. When information about task outcomes is readily available, it is the most

appropriate factor to use in evaluating performance. When an organization has a clear and

measurable goal as in the case of a sales force, this approach is recommended. However, it has

its own pitfalls. There is a problem if employee behaviors are not directly related to the task outcome. Too narrow a focus on measuring out come only sometimes results in unintended negative

consequences. When sales staff narrowly focus on target sales figures to increase their

performance measure, for example, they are encouraged to help a few large volume customers

and to ignore many smaller buyers. This may result in poor customer service on the floor.

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Who Evaluates?

The most common raters of performance are employees immediate supervisors, who are

usually in the best position to know and observe the employees job performance. They

are also responsible for employee’s work. Their evaluation is powerful tool in motivating

employees to achieve successful and timely completion of tasks. However, as a result of working

together over a long time with the same employees, the immediate supervisor may build up a

fixed impression about each employee and use is every time he or she has to evaluate

performance.

Some companies find that subordinates are in the excellent position to observe and evaluate their

manager’s performance, especially when it comes to measuring effective management of their

department. While there is merit in asking subordinates to evaluate how they managed, such

evaluation may turn into popularity contest. Accurate and objective assessment may not be

obtained if employees are fearful of possible retaliation from their supervisors. Anonymity of the

evaluators is key to the successful use of subordinates for subjective evaluation.

Other raters who are frequently used in some companies include peers, customers, and the

employees themselves. Peer evaluation is particularly useful when teamwork and collegiality are

important to successful tack performance. Peer pressure is sometimes a powerful motivator in

encouraging teamwork among member. Customer’s satisfaction is vital to a company’s success

and can be used in performance appraisal. Many companies systematically collects performance

information form customers, typically through anonymous surveys and interviews. Self

assessment is also a useful means, especially when the performance appraisal in intended toidentify the training and development needs of potential employees.

Each of these raters contributes to assessing certain aspects of performance. Since job

performance is multidimensional in nature, it is important to use different raters or a combination

of multiple raters depending on the goal of a performance appraisal system. This multi-rater

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using unreliable and un-validated performance appraisals may cause a legal problem. A number

of court cases have rules that the performance appraisal systems used by many companies were

discriminatory and in violation of Title VII of the Civil Rights Act.

In order to avoid legal problems, companies must develop an appraisal system based on careful

job analysis and establish its reliability and validity. They must give clear written instructions to

raters for completing evaluations and provide them adequate training if necessary. The company

must allow employees to review the results of the appraisals. Human resources department must

play a key role in the development and implementation of an effective performance appraisal

system.

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CHAPTER – II

REVIEW OF LITERATURE

T.V. Rao and Abraham S.J. conducted a study of HRD practices in Indian Industries in 1984.

In the article “Trend in performance Appraisal Journal of Indian management (July, 1985, P. 17)

performance appraisal is defined as “A procedure which help the collecting, checking, sharing

giving and use of information collected from and about people at work for the purpose of adding

to their performance of their work.

T.V. Rao and Abraham S.J. conducted a study of HRD practices in Indian Industries in 1984.

They conducted this study to build up a data bank of HRD and total of 138 companies from the

cities of Bombay, Calcutta, Madras, Delhi and Baroda were contacted with a request to co-

operate in the study if letting the summer trainees of XLRI Jamshedpur to conduct their study of

HRD practice of the 138 companies contacted 60 responded positively. Each summer trainee was

required to spend about a week to 10 days in each company to study HRD system through

observations, analysis of records reports and other materials and interviews with personnel’s and

HRD officers, trainees managers and executives.

The full information would be collected only from 53 organizations. From that, study they found

employee’s development to be increasingly accepted as an objective of performance appraisal in

practice. 26% companies stated their objective was mainly to enhance employee capabilities but

only 24% of total 138 companies had these objective actually in practice. 14% of the total

companies expressed objectives as controlling employeesbehaviour but only 25% of the

companies were practicing it only 44% companies had some form of agreement on tasks /

targers/ functions between boss and his subordinates. 63% companies said appraisal discussion

helped the appraise to recognize his strength 69% companies agreed that their appraisal

discussion aims at helping the appraise to recognize his weakness. 86% companies emphasized

the appraisal

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feedback to tell the employee the areas he needs to improve. 51% companies stressed on self

appraisal to communicate to the boss the accomplishments of an employee individually. 92%

companies pointed out on marginal qualities i.e., leadership, co-ordination and initiative. 88%

companies identity their appraisal on identification of training or development needs. 78%

stressed their appraisal for promotions. 60% companies said performance appraisal discussion

should be found as feedback and counseling. 50% companies said identifying factors affecting

performance and communication them to boss for his assistance and further process. 83%

companies said that the appraiser should be at least one level above the appraise where as 84%

companies felt that the supervisor should be at least two level above the appraise.

According to Harold Mayfield in his article, “In defense of performance appraisal” in Harvard

Business Review.” 1982, P. 17, “It is an attempt to think clearly about each person’s

performance and future prospects against the back ground of his total work situation.

“Performance can be appraised succinctly by describing the best aspects of the individuals work

and suggesting possible areas of improvement. Future prospects can be reviewed constructively

when the supervisor attempt to name jobs that the individual could perform if given the

opportunity.”

A survey performance appraisal was conducted by VinodGandotra in an engineering

organization as a part of HRD activity. The study of performance appraisal system was taken up

with 3 major objectives.

1. To study the interactions which take place between the supervisors and subordinates

during the performance appraisal process? More stress was laid on inter-personal and

intrapersonal aspects.

2. To examine the processes involved in the execution of the personal appraisal system.

3. To seek the opinions of the users with regard to describe changes in the performance

appraisal system.

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A total of 115 managers were sent in the questionnaires. Form the above table, 70 respondents

were received, out of which 33 were as appraises and 37 as appraisers.

The study had two distinct dimensions one the view of managers as appraisers and the view as

appraises. Some of the major findings of the survey were follows:

1. A majority (26%) of the 115 managers gave the purpose of the performance appraisal as

developed 19% as incremental, and 18% as promotional, 15% regulation of control

through reward and punishment, 13% control and 8% ritual.

2. The respondents views about effectiveness of the performance appraisal system was 50%

feel satisfactory level effectiveness. 30% viewed at unsatisfactory and 17% opined it to

be good.

3. 73% of the appraisers and 14% of appraisers felt that follow up was done after appraisal

had been conducted.

4. 94% of the appraisers said that they always gave formal feedback. While 30% of the

appraisers said that no formal feedback was given to them.

5. 90% of the respondents felt that formal appraisal is required.

6. 56% of the respondents felt that it should be done yearly while 37% of respondents felt

that it should be done six monthly.

7. Only 10% of the respondents felt that the performance appraisal should be kept

confidential from appraises.

8. 57% of the respondents viewed that the appraiser should be the person immediately

above the appraise and 29% felt that the appraiser should be two ranks above the

appraise.

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9. 84% of the respondents felt that the opinion of the appraise about his/ her performance

appraisal from after the completion of performance appraisal.

10. 74% of the respondents viewed that the promotion should be

based on merit and seniority, and merit should be given more weight age while 23%

opined that merit should be the base for promotion while only 3% felt that it should be

seniority.

11. As high as 73% of the respondents said that there should be

self appraisal.

12. 6% of the respondents had said that they experienced some

sort of uneasy feeling before the performance appraisal.

13. 86% of the respondents had disagreed to the view that giving

negative feedback along with positive feedback would reduce the motivation and

performance.

Some of the suggestions given by the respondents were: -

1. Performance appraisal should be declined from increment and promotion.

2. There should be a uniform system for evaluation and reward.

3. Some single body should review each performance appraisal form.

Another survey was conducted by PreetiPeshin in 1986 as performance appraisal system an

analytical study in 7 organizations in and around Baroda. The objective of the project was to

study the performance appraisal system in leading organizations.

Some of the major findings of the study were as follows:

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1. During discussions with professionals it became apparent that even though they said that

organization had a performance appraisal is was not so the major evident system was of

confidential reporting.

2. Performance appraisal was viewed as a continuous process in all organizations under

study.

3. Of the organizations 6 have an absolutely formal practice of performance appraisal. In

only 1 organization the system was more formal.

4. In two organizations there exists an open appraisal system. The points were discussed

with the appraise before the final ratings were noted. He was informed about his

performance at the time of rating by his boss. In the other 5 organizations the whole

practice was treated as confidential.

5. The various objectives of the system came in forefront. These were: -

a. Development of the employee

b. Placement

c. Job Rotation

d. Promotion

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11. It was observed that in majority of the organizations the

objectives had neither been disseminated fully nor were they clear to the people.

12. In majority of the organizations it was found that the format

design had done over a great change.

13. In 3 organizations the same format had continued since the

inscription of the organization without any modification.

14. In majority of the organizations still the personality traits were

given more importance than the performance. In only three organizations the appraise

was evaluated on KPA’s.

15. In most of the organizations the standards for rating are

explained in the formats.

16. In only four organizations all the aspects which were to be

evaluated were explained for the benefit of the appraise.

17. In the three organizations which had evolved a new system

the analysis was done keeping in mind the objectives.

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18. The data collected was analyzed in 5 of the organizations were

as in the remaining too the data was only filled up and kept for further actions regarding

increments and promotions.

19. In one of the organizations a review committee was set up

which analyzed the data and recommended training for the individual.

20. In two of the organizations which had open system instant

feedback was given. Informal feedback was given more importance as compared for

format feedback.

MirzaSaiyadin(1981) Says Performance Appraisal could be seen as an objective method of

judging the relative worth or ability of an individual employee in performing his tasks. He aimed

it on a system which can identify a better worker form a poor if it is objectively done.

Mirza had quoted a study done by Chakarborthyand Chatterjee(1975) the study examined t as

two where the emphasis should be placed in performance appraisal sample for this study

consisted of 250 public sector manager and 36 private sector managers. They found out that in

public sector 26.2% agreed for achievement of actual results and 73.8% managers stressed

efforts irrespective of results.

In private sector 31.5% manager emphasized actual results where as 63.5% stressed on efforts

irrespective of results.

Mirza Saiyadin discussed about the main problem of performance appraisal.

1. Achievement of Objective

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2. Human Errors

3. Problem of Criteria

4. Problem of confidentiality.

Many organizations are very clear about the use of data generated through appraisal. In fact may

more design Questions and formats to get the kind of data that would help them to achieve the

objectives.Despite practice some problems cope up that often disturb the achievement of these

objective.

Human Errors in Performance Appraisal

Mirza discussed some problems which arise in the achievement of objectives as follows: -

a. For many supervisor’s performance appraisal is necessary. They express distinct

anxiety about judging others. They do not like to pray god even if the supervisor

genuinely feel that a particular employee has not done well and he should be rated

poor not many actually rate in poor. The supervisor while rating an employee is

influenced by the outcome of his rating. Often the supervisor may become afraid of

his own social and physical well being.

b. Sometime the supervisors have to play simultaneously the role of an evaluator and a

helper. For sometime this may create psychological conflict. It may be easy to find

faults but difficult to correct them. They may not possess the skill to help employees

to develop. To avoid the role conflict often a safer course is not to give extreme

ratings.

c. Timely feedback is very important for achieving the objectives of appraisal. It has

been noted that supervisor generally fill up appraisal reports just before the deadline

or after several reminders from the personnel department.

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d. Sometimes supervisor feel that appraisal is no way helpful to them. On the contrary it

merely creates problems as they might have to deal with unsatisfied employees as a

result they do not pay much attention to the form and its contents.

In 1 more study conducted by Akshay Paul views of middle level management or

engineering Industry on performance appraisal (1987). In the sample size there were

40 first line supervisors and 10 head of departments.

The Major findings of the study were as follows.

1. It was observed that most of the respondents had positive response towards

knowledge, planning organization, creativity, leadership, time management and

training effort etc.

2. It was observed that 100% of the respondents had a positive approach towards the

system.

3. 82% of the respondents were of the opinion that electrical staff should not be

appraised regularly.

4. 90% of the respondents were of the opinion that appraiser should be trained in

appraising the performance.

5. 40% of the respondents reported to quarterly interval, 20% respondents agreed to half

years and 40% felt that yearly interval of performance appraisal should be done.

6. Of the total 80% of the respondents were of the opinion that there should be self

appraisal system.

7. About the feedback 25% felt that there should be feedback from persons and

subordinates 23% felt that there should be periodic interviews 22% were of opinion

for isolated by important incident.

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8. 66% of the respondents agreed that both positive and negative appraisal be

communicated 24% said only negative while 10% felt that only positive.

9. 52% of the respondents were of the opinion that there subordinates could take

constructive criticism.

10. It was seem that 68% appraised discussed their appraisal with

their friends of compared with them.

11. 69% of the respondents were of the opinion that in case of

unfavorable appraisal, job should be redesigned to suit appraisers abilities.

M.S KELLOG presents a study of an organization how new and scientific performance

appraisal system was introduced. The organization was general electric company in USA. The

organization had an old personnel evaluation system, which was based on the two different traits

rating forms. The first was used for all professional and supervisory personnel listed 11 traits or

personnel characteristics such as analytical ability, industry, judgment initiative leadership and

so forth. The second rating form was used for salary administration. This form listed some traits

as appeared on the first form and provided similar choices, which were used to establish a

numerical index performance.

1. The company decided to change the above mentioned dual trait rating system because

they found it unsatisfactory in the following respects

2. There was often luck of argument between the rating a supervisor made on a

confidential basis and the one he discussed with the employee.

3. To be effective any personnel development program must posses a reasonable

objective measure and an employee a job performance and a realistic estimate of his

growth potential.

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4. Since the rating were not always discussed many employees never knew where they

stood.

5. Supervisors found it difficult to differentiate between such terms as initiative and

leadership.

6. The difficulty of the job was not a major determining factor in fixing compensation.

ArunMonappa and Mahrukh Engineer conducted a survey of 22 companies and amongst

these 21 offered promotion to employees as a reward based on their performance appraisal. As

many as 16 were offered financial bonus and eight rewarded their employees with perks.

19 companies conducted regular performance appraisal programs as review and development

exercise. As companies move towards merit based systems example performance based

incentives and promotions, managers must keep a watchful eye for resentment in those

employees who have not been rewarded 14 companies stated such experiences.

In a landmark study, Locher and Teel (1977) found that three most common appraisal methods

in general use are rating scales (56%), essay methods (25%) and results and or MBO methods

(13%). For a description of each follow the button links on the left. Certain techniques in

performance appraisal have been thoroughly investigated and some have been found to yield

better results than others.

Winston Oberg in 1972 suggested some points on which the effectiveness of performance

appraisal depends.

1. Help supervisor to observe their subordinates more closely and to do a better working job.

2. Motivates employees by providing feedback.

3. Improves organizational development.

4. Provides back up data.

5. Establish research.

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Stephen and Loveland (1986) focus on satisfaction as an important descriptors and

Nothan(1991) argue effectiveness to be a function of changes in performance level development

issues are not directly discussed in this literature.

A performance appraisal discussion that models actions inquiry thought and behavior is more

likely to be viewed as worthwhile by both the parties. Action inquiry will help create an open,

honest dialogue where the manager and employee can acknowledge possible initial differences in

their way of framing performance effectiveness can learn more about each others’ view of the

performance at hand and can potentially reframe the assumptions.

Shetty(1970) made a comparative survey of 12 American and nine Indian companies. According

to this survey all 12 American and nine Indian companies were found to use performance

appraisal for determining wage increase. The second rank was given by both the samples to

promotions and transfer. Identifying supervisory personnel was rated as the third most important

objective and the fourth rank was shared by training and development and informing the

employees where they stood. It shows that the results from both the samples were almost the

same.

K.D. Karnad Wood conducted another survey on performance appraisal in 1980.

The objective was to assess the view of middle management on several aspects including traits

and factors to be considered in systems of performance appraisal. The total numbers of

respondents were 40 and out of them 20 were technical and rest of them was non technical.

Findings:

1. Performance appraisal is very much needed.

2. Performance appraisal should be based on combination of qualitative and quantative aspects.

3. Performance appraisal should help in manpower planning, development and training.

4. The ideal periodicity is every year for technical managers and every two years for non

technical managers.

5. Immediate supervisors should do performance appraisal.

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It has been shown in numerous studies that goal setting is an important element in employee

effort, focus attention, increase persistence and encourage employees to find new and better

ways to work. (e.g. Lacke, Et. Al.,1981)

CHAPTER - III

Research methodology

Title:A study on Effectiveness of Performance Appraisal in Fag bearings ltd.

S igni f icance and need for the s tudy :

P e r f o r m a n c e A p p r a i s a l i s a s y s t e m a t i c e v a l u a t i o n o f t h e i n d i v i d u a l

w it h r es pe ct t o h is p er fo rm an ce o n t he j ob a nd h is p ot en ti al f or t he

dev elop men t . i t i s co nce r ned wi th de t e r min ing t he d i f f e ren ce o f

pe r f o r mance among t he empl oy ees wor k i ng i n o r gan i za t i on . The s upe r v i s o r

i n t he o r gan i za t i on nor mal l y does t he eva l ua t i on .

I t i s a n e st ab li sh e d f ac t t ha t p eo p le d if fe r i n t he ir a b il it ie s a n d

a pt it ud es . T he d if fe re nc es a re n eu tr al t o s om e e xt en ts a nd c an no t b e

i m p l e m e n t e d c o m p l e t e l y e v e n b y g i v i n g t h e s a m e t y p e o f b a s i c e d u c a t i o n

and t r a i n i ng t o t hem. Ther e wi l l be d i f f e r ence i n t he q ua l i t y and quan t i t y o f

t he w or k d on e b y d if fe re nt e mp lo ye es e ve n i n t he s am e j ob f or a ny

o r ga n iz a ti o n . I t i s i m po r ta n t t h at t h e i n fo r ma t io n r e ga r di n g p e rf o rm a nc e

a n d c a p a b i li t i e s o f h u m a n r e s o u r c e i s a v a i la b l e . P e r fo r m a n ce A p p r a is a l i s

v e r y e f f e c ti v e t o o l i n t h e h a n d o f H R p r o f es s i o na l t o h e l p t h e e m p l o y e e t o

o v e r c om e h i s w e a k n e ss a n d i m p r ov e o v e r h i s s t r e n g th . T h u s i t i s t o e n a b l e

t o h im t o i mp ro ve h is p er fo rm an ce o f t he o rg an iz at io n . P er fo rm an ce

A p p r a is a l p r o c e d u r e c o n s t i t u te t h e p r i n c i p l e m e d i u m t h r o u gh w h i c h h u m a n

t a l en t s i n t he o r gan i za t i on may b e mos t e f f ec t i ve l y u t i l i zed .

Ther e i t was f e l t neces s a r y by t he r e s ea r che r t o f i nd ou t t he v i ews o f

th e o ff i c er s a nd m an ag er s to s t ud y th e s t re ng th a nd w ea kn ess o f

P e r f o r mance Appr a i s a l s y s t em of t he o r gan i za t i on .

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T he w el l k no wn o rg an iz at io n h as b ee n r ec ti fy in g P er fo rm an ce

A p p r a is a l s i n c e a l o n g t i m e . I t w a s f e l t t h a t i t i s n e c e s sa r y t o k n o w a b o u t

t he v i ews and op i n i ons o f t he p r ac t i ce o f t he pe r f o r mance appr a i s a l s y s t em.

T h e s t u d y w o u l d b e h e l p i n g t h e o r g a n i z a t i o n i n t e r m s o f m o d i f y i n g t h e

met hod .

Object ives : .

- To k now the op in ion s whic h th e employ ee ca r ry abou t th e

pe r f o r mance appr a i s a l s y s t em i n o r gan i za t i on .

- To know abou t t he e f f ec t i venes s o f P e r f o r mance Appr a i s a l s y s t em.

- T o u n d e r s t a n d h o w t h e r e s u l t o f P e r f o r m a n c e A p p r a i s a l s y s t e m a r e

us ed i n t r a i n i ng and empl oy ee deve l opment . .

- T o k no w a bo ut t he v ie ws a nd o pi ni on s o f t he e mp lo ye es a bo ut

P er f o r mance Appr a i s a l s y s t em.

- To s t udy how f a r P e r f o r mance Appr a i s a l s y s t em he l ps an empl oy ee t o

deve l op on a who l e .

Study Des ign

T h e s t u d y d e s i g n i s a n d e s c r i p t i v e o n e , b e c a u s e i t p u r p o s e t o k n o w t h e

v ie ws a nd o ut lo ok o f t he P er fo rm an ce A pp ra is al s ys te m, s o t ha t n o

es t ab l i s hed nor ms f o r t h i s k i nd o f s t udy . The s t udy des i gn o f f e r s f l ex i b i l i t y

i n t e r ms o f a r eas whi ch wer e l e s s known and accur acy fo r t he a r eas whi ch

needed mor e p r ec i s e des c r i p t i on .

Universe o f the Study

T h e u n iv e rs e o f t h e s t u d y c o n s i st o f 5 0 m i dd l e l e v e l m a na g e rs f r om

di f f e r en t depa r t men t o f f ag bea r i ngs l t d .

Sample s ize

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T h e s a m p l i n g p r o c e d u r e o f t h e s t u d y i s r a n d o m s a m p l i n g . T e c h n i q ue t o

cover a l l va r i ous depa r t men t o f t he company .

S a m p l e s i z e o f 5 0 r e s p o n d e n t s w e r e s e l e c t e d f o r s t u d y o f P e r f o r m a n c e

A pp ra isa l sys te m b y r an do m s am pl i ng f ro m a ll e mp lo ye es o f FA G

BEARI NGS LTD. wer e cover ed i n t h i s s t udy .

Operational definition:

1. Performance Appraisal System: It is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development.

2 . Effectiveness: Effectiveness is a measure of whether and to what extent set goals have been

achieved ("doing the right things"). In project management effectiveness is a strategic criterion.

Tools of data collection : -

Questionnaire has been utilized as the tool for data collection.

Limitations of the Study : -

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[Type text]

The research being of student had many limitations for collection of data.

The time period for collecting data was too short.

Questionnaire method had to be used looking into the availability of the employees.

Chapterisation:

The whole study is presented in FIVE chapters

Chapter-1 Introduction

Chapter-2 Review of Literature

Chapter-3 Research Methodology

Chapter-4 Research setting

Chapter-5 Data Analysis and Interpretation

Chapter-6 Findings, Conclusion and Suggestions.

Annexure-1 Bibliography and Annexure-2 Questionnaire

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[Type text]

CHAPTER - IV

RESEARCH SETTING

OVERVIEW

FAG Bearings India Limited, a member company of FAG group of Germany - is a leading

player in the Indian Bearing industry.

The company manufactures a very wide range of bearings conforming to the stringent

international quality standards.

FAG India's manufacturing plants, located at Vadodara, Gujarat, feature the most advanced

manufacturing technology. The company is certified to ISO/TS 16949, ISO 9001, and ISO 14001

standards.

FAG India is a leading OEM supplier to the automotive industry, mechanical and electrical

engineering industry, besides the Railways.

In 1997, FAG Bearing India Limited set up the country's first 100% EOU for bearings. Bearings

produced at the EOU plant have gained ready acceptance and recognition of customers located in

Europe,USA,AsiaandAfrica.

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[Type text]

FAG's joint venture company - FAG Roller Bearings Private Limited - produces taper roller

bearings at Chakan near Pune.

HISTORY AND MILESTONES

1872 - Friedrich Fischer founds a repair workshop

In 1872 Friedrich Fischer founded a repair workshop for sewing machines from which the "First

Automatic Cast Steel Ball Factory", formerly Friedrich Fischer AG, emerged in 1897.

1883 - Fischer starts manufacturing steel balls

Friedrich Fischer, the "Kugelfischer" (Ball Fischer), as he was referred to, laid the most historical

milestone in 1883 when he succeeded for the first time in producing - under factory-like conditions - steel

balls in large quantities which were very precise and uniform in size. This marked the beginning of the

rolling bearing industry. For us, our history as an industrial company actually finds its point of origin

here.

1905 - The FAG trademark

The "FAG" trademark originating from the Fischer Aktien-Gesellschaft, was first registered in 1905 and

is now listed in the corporate registries of over a hundred countries. It was added to the company's name

in 1979.

1985 - FAG goes public

In 1978, FAG Kugelfischer Georg Schafer AG was converted into a limited partenership, which

in turn became a partnership limited by shares in 1983. In 1985, it was then launched on the

stock exchange.

1993 - focusing on core competence and customer orientation

In the year 1983, under the slogan "focusing on the core business", a comprehensive restructuring

program was initiated, concentrating on the core businesses of rolling bearings, sewing technology and

material handling systems.

1996 - International activities

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[Type text]

In 1996, the FAG Group acquired companies, expanding its business in international markets.

1998 - The FAG Sales Europe is founded

In the year 1998, FAG continued to expand its business and sales network. FAG Sales Europe is

carrying out its activities in twelve European countries through local branch offices in order to

achieve a concerted and even stronger performance in the European market.

1998 - FAG gains market leadership in Korea

In order to significantly increase market share in Asia, and thus strengthen our competitive

position, the FAG Group bought a 70 percent interest in FAG Hanwha Bearings Corporation,Seoul, Korea.

1999 - FAG Academy of International Coaching and Training

The FAG Academy of International Coaching and Training (AICT) was founded in 1999. AICT

is a globally oriented organization and works closely together with university professors in

Germany, USA and Korea.

2000 - International Orientation

FAG reached a global bearing alliance with NTN Corporation, Osaka, Japan.

2001 INA Holding Schaeffler KG and FAG Kugelfischer Georg Schafer AG have reached an

agreement regarding INA's public tender offer for FAG's shares, FAG will remain the

management company for FAG activities within the INA roup and the company name FAG

Kugelfischer Georg Schafer AG and the brand name FAG will be retained.

The FAG brand started with an ingenious idea. In 1883, Friedrich Fischer designed a ball

grinding machine in Schweinfurt, Germany that, for the first time, made it possible to produce

absolutely round steel balls by grinding. This invention is regarded as the foundation for the

entire rolling bearing industry. This is one of the reasons why FAG has long been considered to

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[Type text]

be a pioneer in rolling bearing technology. Today, FAG is one of the leading brands for

applications in machine building, the automotive industry and in aviation and aerospace

technology. The Schaeffler Group's FAG brand has companies, subsidiaries and sales agencies in

all major industrial countries.

Since 2001, FAG has been part of the Schaeffler Group and has been active in all of the group’s

divisions – Aerospace, Automotive and Industrial. Together with INA’s complementary product

range, FAG has one of the widest product portfolios in the rolling bearing industry, covering

nearly all applications in production machinery, power transmission and rail technology, heavy

industry and consumer products.

FAG ball bearings and roller bearings are manufactured as standard and special bearings in many

designs and sizes with diameters ranging from 3 millimeters to 4.25 meters. Together with INA,FAG offers customers comprehensive support and services for the diagnosis, maintenance and

mounting of rolling bearings and complete systems.

As a forward-looking company, the Schaeffler Group with its brand FAG has invested

significant amounts in research and development. Modern simulation methods and testing

facilities as well as special materials engineering laboratories ensure the continuous development

and improvement of all product lines and confirm the innovative force of FAG.

Company history

from 1883 to 1914

from 1915 to 1945

from 1946 to 1984

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http://www.fag.com/content.fag.de/en/company/history/from-1946-to-1984/history_1946-1984.jsp

http://www.fag.com/content.fag.de/en/company/history/from-1915-to-1945/history_1915-1945.jsp

http://www.fag.com/content.fag.de/en/company/history/from-1883-to-1914/history_1883-1914_1.jsp



[Type text]

from 1985

1883

Friedrich Fischer designs the ball grinder. This machine allows

steel balls to be ground to an absolutely round state for the first

time – and in large volumes. Thanks to this innovation, he lays the

foundation for the entire rolling bearing industry. Thus, the

worldwide success story of the ball bearing begins in Schweinfurt.

Later, 1883 is officially declared the year in which the company

was founded.

1896

Friedrich Fischer applies for permission to build a new plant near

the train station in Schweinfurt – a step towards a new industrial

dimension. The new plant produces 10 million balls per week. The

company is incorporated one year later.

1899

Friedrich Fischer suffers a stroke and passes away at the age of 50

on October 2. He does not have any children. With the death of this

innovator and entrepreneur, his 400 employees lose the driving

force of the company. The company’s financial situation worsens.

This is also due to the persisting crisis in the ball industry, which is

caused by overproduction, competitive pressure, protective duties,

etc.

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http://www.fag.com/content.fag.de/en/company/history/from-1985/history-1985-now.jsp



[Type text]

1905

On July 29, the FAG brand is registered with the patent office in

Berlin. The registered trademark FAG, which stands for

FischersAktien-Gesellschaft, is protected in over 100 countries

today.

1909

Georg Schäfer takes over the “First Automated Cast Steel Factory,

previously Friedrich Fischer, AG“

(“ErsteAutomatischeGußstahlkugelfabrik, vormals Friedrich

Fischer, AG“) and converts it to a partnership by November 1.

Georg Schäfer’s strong personal commitment and hard work make

the industrial company internationally renowned. Exports increase

– also due to the excellent quality of the rolling bearings supplied –

to 40 percent before World War I.

1911

Rolling bearings are used in increasingly more automotive

applications. Ray Harroun wins the first Indy 500 race in

Indianapolis driving a Marmon whose engine is equipped

exclusively with FAG ball bearings.

1911

G. u. J. Jaeger in Wuppertal, founded in 1868 and acquired by FAG

in 1933, develops the first cylindrical roller bearing that proves

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http://www.schaeffler.com/remotemedien/media/_shared_media/company/history/fag_1/1909_42_03-13_hisotry.jpg

http://www.schaeffler.com/remotemedien/media/_shared_media/company/history/fag_1/1905_history.jpg



[Type text]

reliable in a large number of heavily loaded rail vehicles.

1912

Johann Modler, an FAG engineer, develops the barrel roller

bearing allowing angular adjustment (DRP no. 290 038 dated

February 16, 1912).

1913

The first needle roller bearings supplied by Dürkoppwerke in

Bielefeld are used in the rear axle gears of large trucks.

Dürkoppwerke was founded in 1867 and taken over by FAG in

1962.

1913

The company celebrates its 30th anniversary. Colorful poster

stamps are issued to commemorate the triumphant success of

rolling bearings in automotive and industrial applications.

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http://www.schaeffler.com/remotemedien/media/_shared_media/company/history/fag_1/1912_history.jpg




[Type text]

• Clutch

systems

• Dual mass

flywheels

• CVT

components

• Torque

converters

• Roller and friction bearings

• Linear guides

• Engine elements

• Precision products

• Rolling bearings for

industry and automotive

technology

• High-precision bearings,

e.g. for air and space

travel, tool machinery

and the textile industry

Further details about

LuK available at

www .luk .com

Further details about INA

available at

www .ina .com

Further details about FAG

available at

www .fag .com

Owners / Management

Maria-Elisabeth Schaeffler Owner and Lic.

oec. HSG Georg F. W. Schaeffler JD/LLM

Owner

As a family business, we realize that we

have a responsibility to keep moving

forward in a world which is developing at a

faster and faster rate and in which the half-

life of forecasts is becoming increasingly

shorter. As the Schaeffler Group, we must

be competitive and work together to achieve

our goals. We have worked hard to get to the

top; and the three strong brands - INA, LuK

and FAG - have grown together to form the

Schaeffler Group. We are committed to

succeeding, to ensuring sustainability in our

actions and to being passionate about our

company: “Together we move the world.”

We further the competence of our employees

and rely on targeted investments in research

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http://www.luk.com/

http://www.ina.com/

http://www.fag.com/

http://www.luk.com/

http://www.ina.com/

http://www.fag.com/



[Type text]

Dr. Jürgen M. Geißinger President & CEO

and development. We base our decisions on

customers’ expectations. Our customers

demand proximity in growing and newly

developing markets. Technical and business

expertise as well as the dedication of our

excellent employees have always been a

basis for our success, as have been our

regional ties that have never lost sight of the

global picture.

Not only has our development been

characterized by responsible management

and consistent company development, we

have also actively designed the connection

between the company history and the

corporate culture. We cultivate exceptional

commitment, mutual trust and reliability,

which has resulted in powerful and

sustainable results.

In the spirit of a “family business”, the

shareholders and management of the

Schaeffler Group see it as their task to

continue to develop the company

responsibly and successfully.

anagement: Robert Schullan

Robert Schullan has been a member of the Schaeffler KG Executive Board since January 1,

1998. He was initially responsible for Sales, Industrial and Distribution and was appointed

Chairman of the Board of FAG Kugelfischer AG in Schweinfurt on March 1, 2004. In addition

to this function, he has been responsible for Schaeffler Group Industrial since the integration of

FAG was completed.

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[Type text]

Robert Schullan has been a member of the Schaeffler KG Executive Board since January 1,

1998. He was initially responsible for Sales, Industrial and Distribution and was appointed

Chairman of the Board of FAG Kugelfischer AG in Schweinfurt on March 1, 2004. In addition

to this function, he has been responsible for Schaeffler Group Industrial since the integration of

FAG was completed.

Robert Schullan received a mechanical engineering degree from the University of Applied

Sciences (technical college) in Munich and started his career with the Schaeffler Group in the

automotive engineering office in Offenbach in 1985. In 1990, he transferred to Schaeffler KG’s

headquarters in Herzogenaurach where he was responsible for establishing the Eastern Europe

Sales Region in the new German states until 1993. After he became the Sales Manager for OEM

and Distribution in 1993, Robert Schullan focused on converting the German sales organization

into an international organization.

Robert Schullan is married and has three children.

Quality Policy

Our mission is not simply to be good at quality but to excel in quality.

If we are to convince and secure our customers in the long term, we must continue to take a lead

on quality, technological progress, reliability and cost-effectiveness as well as ensuring correct,

timely deliveries and proving a committed service.

This is and always has been the foundation on which the success of the Company is based.

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[Type text]

The standard we must aim for is quality in the eyes of our customers; we must focus every effort

on satisfying the expectations and requirements of our customers. Every employee must think

and act in accordance with this principle and we must all co-operate with this goal in mind.

Our work must be based on the objective of “zero defects“ and we must implement measures in

all departments to ensure defect prevention, not simply defect detection.

The result of our work must be free from defects, at all times and in every workplace throughout

our Company.

The Management and all employees give their wholehearted commitment to this quality policy.

Environment

Eco-Audit and Certification to ISO 14001

An Integral Part of our Company Philosophy

Environmental protection as a company objective – what does it mean to us? For many years, an

environmental philosophy has had number one priority in product development, purchasing,

production and the supply and disposal of materials. Active environmental protection is thus an

integral part of all areas of our business. We are convinced that positive environmental

management helps to secure the progress and success of our Company.

With the validation and certification of our manufacturing facilities, we are taking a leading role

in environmental protection. The plants of the Schaeffler Group have been certified to ISO14001 at every location worldwide. Many locations, even outside Europe, have also been

validated according to the even stricter EMAS (Eco-Management and Audit Scheme) program.

Code of Conduct

The Schaeffler Group is continuing the social responsibility of all

group companies and sees this as a prerequisite for lasting corporate success. The Schaeffler

Group’s Code of Conduct is based on the principles of the “Global Compact”, “The Global

Sullivan Principles of Corporate Social Responsibility” and the standards of “Social

Accountability International”. The basic principles described here constitute a minimum standard

for us and do not affect country-specific additions that are based on the relevant cultural

circumstances.

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continuously improve. Local environmental protection laws and the specifications of the

Schaeffler Group’s environmental protection system must be observed as a minimum. We

collaborate with our business partners and suppliers in exercising our environmental

responsibility.

Conflict of interests, gifts and attempted bribery

We give an undertaking that we will not accept gifts or payments or hold (company) investments

which could lead to a conflict of interests. In particular, neither bribes nor any other illegal

payments may be offered, made or accepted.

Suppliers

We encourage, where practicable, our suppliers to introduce and implement similar principles of

social responsibility within their companies.

Responsibility

We believe each of our employees has an individual responsibility to follow this Code of

Conduct and encourage coworkers to abide by it as well. Management is responsible for

enforcing principles that become part of our rules or policies. guaranteed minimum wages in the

respective labor market. We observe the rules that apply to working hours in each of our

operations.

Relationship with employees and employee representatives

We believe in an Open Door Policy and enable our employees to express their interests directly

to management on a continual basis.

Reconcilability of job and family

We are a family-owned enterprise. With our family-friendly arrangements and provisions we

strive to enhance the satisfaction and motivation of our employees and hence increase the

performance of the Group.

Health and safety

We mean to provide a safe and healthy working environment that meets or exceeds applicable

standards for occupational health and safety. We will take steps to prevent injuries and

occupational illnesses caused by workplace conditions.

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[Type text]

Workforce development

We see the development of our employees as an essential investment in the future of our

company. We also value the development of social and technical expertise.

Environmental responsibility

We maintain an environmental management system at all production sites world-wide, which we

continuously improve. Local environmental protection laws and the specifications of the

Schaeffler Group’s environmental protection system must be observed as a minimum. We

collaborate with our business partners and suppliers in exercising our environmental

responsibility.

Conflict of interests, gifts and attempted bribery

We give an undertaking that we will not accept gifts or payments or hold (company) investments

which could lead to a conflict of interests. In particular, neither bribes nor any other illegal

payments may be offered, made or accepted.

Suppliers

We encourage, where practicable, our suppliers to introduce and implement similar principles of

social responsibility within their companies.

Responsibility

We believe each of our employees has an individual responsibility to follow this Code of

Conduct and encourage coworkers to abide by it as well. Management is responsible for

enforcing principles that become part of our rules or policies

FAG INDIA CLIENTELE

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[Type text]

HR VISION FAG INDIA

- Credibility

- Communication are open transparent & accessible

- Competence in coordinating human and material resources

- Integrity in carrying out group vision, values and respect

- Supporting professional development with empowernment and appreciation.

- Collabration with employees on relevant decisions

- Caring for employees as individual with human approach

- Fairness

- Equity-balanced and merit based rewards.

- Impartiality-absence of favouritism in hiring & promotions

- Justice- lack of discrimination and purpose for review

- In personal job, individual contributions

- In work produced by ones team or groupwork

- In the organization products/services and standing in the customers, business and

community.

- Ability to be oneself

- Socially friendly, understanding and accepting others

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[Type text]

- Sense of Family and team

Traning at a glance

FAG India:Traning for new trainees/Training for employees induction training for all new

trainees and new employees in training centre plant and offices.

Trade Apprentices Diploma & Graduate

Engineers

Intership/project students

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[Type text]

-To train craftsmen under

National Apprenticeship

Guidelines.

-To train technician under

National apprenticeship

guidelines

-To orient student from

educational institutes

-Duration 3-4 years (for ITI:

1year)

-Duration: 1year -Duration 2-6 months

-15-20 Trainees in a group 15-20 trainees in a group 15 trainees in a year

-Students passing secondary

school (age 16-18years)

-Students passing

polytechnic Engg.

Institutes(Age 20-22years)

-Students studying

professional courses in

finance marketing,IT,HR

and technical

-Traders:Fitter,Turner,

machinist,Grinder,El

ectrician and Diemaker

-Mechanical, Electrical,

Industrial Electronics

-Objective industry

-Depending on vacancy,

employment as craftsman

-If vacancy exists

employment as technician

SFU group leaders

-Interface

Operative skills development Management development Organizational development

-To train and promote production

operators for multi skills

-Functional expertise and

social skills

-Schaaeffler FAG-India

vision

-Experienced machine operators

from production,Quality,

Maintenance and services.

-Management principles,

team and leadership

development

-Sensitivity training and

PGL

-Grinding, Engg/production

drawingspc,

hydrawlicsandpneumatic,plc,kaizen,

Quality circle

-Personal effectiveness and

stress management.

-Sales Training

-Positive work and life approach

abd social behavior/skills.

-Training at schaeffler

Group world-wide plants.

-Facilitation by internal and

external export including

Schaeffler group

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[Type text]

FAG India :Employee management participation

-Internal Association partnership with the management.

-Joint managrmnt council safety committee, canteen committee.

-Staff Recreation committee

-Sports committee

-Suggestion scheme

-Prductivity linked scheme.

WORK SCHEDULE - FAG

Shift Timings

Gen 8:30 am to 5:00

First 7:00 am to 3:30P.m

Third 12:00 midnight to 7:00am

Grades of the employees - FAG

Level Grades

Managing directors L-1

And Vice president

Managers/senior managers/ M1,M2,M3/SM4,SM5/SM6

DGM

Executives/assistant Managers MG-1,MG-2,MG-3

Operative Group OG-1,OG-2,OG-3

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[Type text]

AL can be encashed by the employees on their date of retirement, resigning from the company’s services

or incase of death computation of leave encashment will depend

Upon(Basic+Fixed DA) for the month. In other words, no employee will be permitted leave encashment

during his tenure in the company.

FAG INDIA: Employee Welfare

Statutory Non - Statutory

-ESI -Staff Recreation club

-Gratuity -Birthday gifts

-Canteen Facility -Long service awards

-First Aid -Study loan facility

-Uniforms -Education awards for employee children

-Departmental get together

-Coperativecrdit society

-Interest subsidy for housing and vehicle

-Group accident insurance scheme

-Mediclaim

-canteen Subsidy

-Employee family relief fund

-Food grain/Festival Advance

-Notional Gratuity

FAG : Welfare activities

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[Type text]

-Three pairs of uniform are provided to all the permanent Operative group employees and two pairs to

management group employees every year.

-A pair of safety/electrical/office shoes depending upon the nature of work is provided to all the

employees two pairs of management level every year

-Two are provided( depending upon the nature of the work) to the employees working on the shop floor

once in two years.

-Sweater and rain coat are provided to operative group employees only, once in three years.

-Gumboots are provided to the employees if their use is inevitable, depending upon the nature of their

work.

-Medical Assistance of Rs 1,00.000 in critical illness surgery

-Additional medical illness/surgery up to Rs 1,00,000 in specific surgeries like- Angloplastic, Bypass

surgery, kidney transplantation and joint replacement only

CANTEEN

Canteen facility is provided to all the employees and trainees.

Lunch/Tea/snacks are provided at subsidized rates to all the employees.

Lunch is provided to the employees at a rate of Rs 1.40/per meal

Tea/snacks are provided to the employees at the rate of Rs 0.30/per

CHAPTER - V

DATA ANALYSIS & INTERPRETATION

SECTION-I

1. Showing Age of respondents.

AGE CATEGORY FRQUENCY %

20-25 20 40

26-30 03 6

31-35 03 6

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[Type text]

36-40 07 14

41-45 13 26

46-50 02 4

Above 50 02 4

Total 50 100

The above table indicates that out of 50 respondents,6% respondents are in the age group of 26-30 & 31-

35, 40% respondents under the age group of 20-25, 14% from 36-40, 26% belonging from 41-45 & 4%are 46-50,Above 50

2. Showing the education of respondents.

DEGREE FREQUENCY %

Masters 05 10

Graduates 10 20

Bachelor of engineering 01 2

Dip in DHRM, IRPM 11 22

Diploma in M.E 21 42

High Secondary 01 2

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[Type text]

Secondary 02 4

Total 50 100

The above table indicates that out of 50 respondents,10% respondents are Masters, 20% respondents are

graduates,2% Bachelor of engineering and 22% are belong from DHRM AND IRPM,42% are from

Diploma in mechanical engineering,2% belongs from higher secondary and 4% from secondary.

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[Type text]

SECTION-II

TABLE 1

Showing that the appraisal system provides an opportunity for each appraise to have a clear understanding

what is expected from by is reporting officer and the organization.

PARTICULARS FREQUENCY PERCENTAGE

Totally False - 0

Slightly True 1 2

Somewhat True 10 20

Mostly True 27 54

Completely True 12 24

TOTAL 50 100

The above table indicates that out of 50 respondents (100%), 01(2%) respondents answered is slightly

true, 10(20%) somewhat true, 27(54%)respondents answered is mostly true and 12(24%) said completely

true.

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[Type text]

TABLE NO 2

Showing that appraisal system helps a clear joint understanding of each apprasee’s job.


Totally False - 00

Slightly True - 00

Somewhat True 12 24

Mostly True 23 46


TOTAL 50 100

The above table indicates that out of 50 respondents (100%), , 12(24%) somewhat true,

23(46%)respondents answered is mostly true and 15(30%) said completely true.

TABLE 3:

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[Type text]

Showing that appraisal system provides an opportunity to appraisee and communicate with the superiors

to perform his job well.


Totally False -

Slightly True -

Somewhat True 13 26

Mostly True 26 52


TOTAL 50 100



TABLE 5

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[Type text]

Showing that appraisal system provides an opportunity for self review and reflection.


Totally False -

Slightly True 1 2

Somewhat True 11 22

Mostly True 27 54


TOTAL 50 100


true, 11(22%) somewhat true, 27(54%)respondents answered is mostly true and 11(22%) said completelytrue.

TABLE 6

Showing that appraisal system encourages the appraiser and appraise to have common understanding

affecting the performance.

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[Type text]


Totally False -

Slightly True -

Somewhat True 13 26

Mostly True 26 52


TOTAL 50 100



TABLE 7

Showing that appraisal system provides an opportunity for a discussion between the appraiser and

appraise for achievement, failures and improvement required.


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[Type text]

Totally False -

Slightly True -

Somewhat True 14 28

Mostly True 28 56


TOTAL 50 100

The above table indicates that out of 50 respondents (100%), 14(20%) somewhat true,28(56%)respondents answered is mostly true and 8(16%) said completely true.

TABLE 8

Showing that appraisal system has scope for an each appraise on the personality factor and attributes

required for the current job.


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[Type text]

Totally False -

Slightly True 1 2

Somewhat True 9 18

Mostly True 30 60


TOTAL 50 100



TABLE 9

Showing that appraisal system encourages open communication between each appraiser and appraise.


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[Type text]

Totally False - -

Slightly True -

Somewhat True 8 16

Mostly True 32 64


TOTAL 50 100

The above table indicates that out of 50 respondents (100%), 08(16%) somewhat true,


TABLE 10

Showing that appraisal system provides an opportunity for each appraise to express his developmental

needs.


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[Type text]

Totally False -

Slightly True -

Somewhat True 13 26

Mostly True 27 54


TOTAL 50 100



TABLE 11

Showing that appraisal system has scope for correcting the biases of reporting officer through review

process.


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[Type text]

Totally False -

Slightly True 1 2

Somewhat True 13 26

Mostly True 27 54


TOTAL 50 100



TABLE 12

Showing that appraisal system aims at strengthening appraiser – appraise relationship.


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[Type text]

Totally False - -

Slightly True - -

Somewhat True 14 28

Mostly True 25 50


TOTAL 50 100



TABLE 13

Showing that appraisal system helps appraise to gain more insights into their strengths and weakness.


Totally False - -

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[Type text]

Slightly True - -

Somewhat True 8 16

Mostly True 29 58


TOTAL 50 100

The above table indicates that out of 50 respondents (100%), 8(16%) somewhat true, 29(58%)respondents

answered is mostly true and 13(26%) said completely true.

TABLE 14

Showing that appraisal system has scope for helping each employee to discover his potential.


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[Type text]

Totally False -

Slightly True 1 2

Somewhat True 17 34

Mostly True 18 36


TOTAL 50 100



true.

TABLE 15

Showing that appraisal system has scope for communicating top management plans and business goals to

staff below.


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[Type text]

Totally False - -

Slightly True - -

Somewhat True 8 16

Mostly True 30 60


TOTAL 50 100



TABLE 16

Showing that objectives of the appraisal system are clear to all employees.


Totally False - -

87 | P a g e



[Type text]

Slightly True - -

Somewhat True 11 22

Mostly True 26 52


TOTAL 50 100



TABLE 17

Showing that periodic orientation program are conducted and other details of the appraisal system.


Totally False - -

88 | P a g e



[Type text]

Slightly True - -

Somewhat True 7 14

Mostly True 37 74


TOTAL 50 100

PERCENTAGE



TABLE 18

Showing that line managers generally spend time to discuss with their subordinates about their

performance.


89 | P a g e



[Type text]

Totally False -

Slightly True -

Somewhat True 12 24

Mostly True 20 40


TOTAL 50 100



TABLE 19

Showing that reporting officers helps their appraises to plan their performance in the beginning of the

year.

90 | P a g e



[Type text]


Totally False - -

Slightly True - -

Somewhat True 4 8

Mostly True 34 68


TOTAL 50 100



TABLE 20

Showing that discussion on key performance areas task and targets between appraiser and appraisee


91 | P a g e



[Type text]

Totally False -

Slightly True 1 2

Somewhat True 12 24

Mostly True 27 54


TOTAL 50 100



tue.

TABLE 21

Showing that managers take performance appraisal seriously.


Totally False - -

92 | P a g e



[Type text]

Slightly True - -

Somewhat True 5 10

Mostly True 23 46


TOTAL 50 100



TABLE 22

Showing that executives do a thorough job in terms of reviewing, reflecting and analyzing the factors

affecting their performance.


93 | P a g e



[Type text]

Totally False - -

Slightly True - -

Somewhat True 6 12

Mostly True 32 64


TOTAL 50 100



TABLE 23

Showing that performance review discussion are taken seriously by managers and sufficient time spent in

these discussion.


Totally False -

94 | P a g e



[Type text]

Somewhat True 11 22

Mostly True 28 56


TOTAL 50 100



TABLE 25

Showing that efforts made by appraiser to be objectives in their appraisals.


Totally False - -

96 | P a g e



[Type text]

Slightly True 1 2

Somewhat True 11 22

Mostly True 25 50


TOTAL 50 100



true.

TABLE 26

Showing that HRD department follows up the training need identified during appraisal.


Totally False - -

97 | P a g e



[Type text]

Slightly True - -

Somewhat True 14 28

Mostly True 23 46


TOTAL 50 100



TABLE 27

Showing that appraisal data are used by the HRD department for development decision like job rotation, job enrichment.


Totally False - -

98 | P a g e



[Type text]

Slightly True - -

Somewhat True 10 20

Mostly True 30 60


TOTAL 50 100

The

above table indicates that out of 50 respondents (100%), 10(20%) somewhat true, 30(60%)respondents


TABLE 28

Showing that appraisal data are used as inputs for recognition and encouragement of high performance

and desirable behavior.


Totally False - -

Slightly True - -

99 | P a g e



[Type text]

Somewhat True 12 24

Mostly True 28 56


TOTAL 50 100



true.

TABLE 29

Showing that reviewing officers try to educate their subordinates to overcome their personal biases and

favoritism.


Totally False - -

Slightly True - -

100 | P a g e



[Type text]

Somewhat True 14 28

Mostly True 28 56


TOTAL 50 100



TABLE 30

Showing that HRD department actively reviews each appraisal and discuses with line mangers .

PARTICULARS FREQUENCY PERCENTAG

Totally False - -

Slightly True - -

101 | P a g e



[Type text]

Somewhat True 4 8

Mostly True 36 72


TOTAL 50 100



TABLE 31

Showing that HRD department provides feedback to line mangers on their rating behavior and decisions

taken on their ratings.


Totally False - -

Slightly True - -

102 | P a g e



[Type text]

Somewhat True 7 14

Mostly True 31 62


TOTAL 50 100



TABLE 32

Showing that performance review committee do a thorough job in reviewing and using appraisal data.


Totally False - -

Slightly True - -

103 | P a g e



[Type text]

Somewhat True 10 20

Mostly True 32 64


TOTAL 50 100



TABLE 33

Showing that appraisal facilitate growth and learning in organization for both appraiser and appraises.


Totally False - -

104 | P a g e



[Type text]

Slightly True - -

Somewhat True 4 8

Mostly True 35 70


TOTAL 50 100



105 | P a g e



[Type text]

CHAPTER-VI

FINDINGS, CONCLUSIONS AND SUGGESTION

FINDINGS

Following findings have been outputted on the basis of the analysis and interpretation done by

researcher.

• All the respondents who were selected as samples were males i.e 100% were males.

• Majority (40%) of the respondents are falling under the age group of 20 to 25 years.

While (26%) respondents are belonging to age group of 41 to 45, 14% are from 36 to 40,

(6%) the age group of 26 to 30 and 31 to 35 years, (4%) from 46 to 50 and above 50.

• Majority (42%) of the respondents are dip in mechanical engineering, (22%) are dip in

DHRM AND IRPM, (18%) are graduates, (10%) having a degree of masters, (4%) are

10th pass and (2%) are Bach. Of engineering and higher secondary.

• Majority 24% respondents having a experience of 10 to 15 years, 20% of respondents

having a experience of 5-10 years and 15-20 years while 20% respondents experience of

more then 20 years and 16% respondents are having a experience of 0-5years.

106 | P a g e



[Type text]

• Majority (54%) are mostly agreed that the Appraisal system provides an opportunity to

appraisee and clearly understanding about the performance and (24%) are completely

agreed, 20% somewhat agreed and 2% are slightly agreed.

• 46% respondents are mostly agreed that appraisal system provides a clear joint

understanding of each appraises job and 30% are completely agreed, 24% are somewhat

agreed.

• 54% respondents are mostly agreed, 24% are completely agreed and 20% somewhat

agreed as well as 2% are slightly agreed that the appraisal system helps managers to

measure their performance.

• 52% respondents are mostly agreed that appraisal system provides an opportunity for

their self- review and reflection, while 26% are somewhat agreed and 22% are

completely agreed.

• Majority 54% are mostly agreed, 22% are completely agreed, 22% are somewhat agreed

and 2% are slightly agreed athat

• 52% are answered mostly true that appraisal system encourages and common

understanding the performance of the appraisee while 26% are somewhat agreed and

22% are completely satisfied.

• 56% respondents are mostly satisfied and 28% are somewhat agreed and 16% are 16%

are completely answered that appraisal system provides the discussions on expectation,

achievements, failures and improvement required.

107 | P a g e



[Type text]

• Majority 60% respondents replied that appraisal system are scope of reflection of each

apprise and personality factors also while 20% are completely agreed and18% somewhat

agreed and 2% are slightly satisfied.

• 64% respondents replied that appraisal system encourages open communication while

20% completely agreed and 16% are somewhat agreed.

• 54% respondents agreed that the appraisal system provides to express their

developmental needs while 26% are somewhat agreed and 20% are completely agreed.

• 54% respondents are agreed that the appraisal system correcting the blases of reporting

officer, while 26% somewhat agreed, 18% are completely agreed and 2% are slightly

agreed.

• 50% respondents are satisfied that appraisal system strengthening the relationship

between appraiser and appraisee while 28% somewhat agreed , 22% are completely

agreed .

• 58% respondents are agreed that appraisal system helps them to concentrate their strength

and weaknesses while 26% are completely agreed and 16% are somewhat agreed.

• 36% respondents response that appraisal system help each employee to discover his

potential while 34% somewhat agreed, 28% are completely sad true and 2% answered

slightly true.

• 60% respondents replied that the appraisal system has communication between top

management and staff below and goals while 24% completely agreed and 16% are

somehat agreed.

108 | P a g e



[Type text]

• Majority 52% respondents are clear the objectives of appraisal system while 26%

completely understand and 22% are somewhat known.

• Majority 74% respondents are replied that orientation programmes are conducted in the

organization while 14% somewhat agreed and 12% completely agreed.

• 40% Respondents are agreed that line managers spend time to discuss with their

employees while 36% completely agreed and 24% somewhat agreed.

• Majority 68% respondents are agreed that the reporting officer help the appraisee to plan

their performance while 24% completely agreed and 8% somewhat

• Majority 54% respondents are mostly agreed that the appraiser andappraisee discuss the

key result areas and targets, tasks while 24% somewhat agreed ,20% completely agreed

and 2% of respondents slightly agreed.

• Mostly 46% agreed that managers takes appraisals seriously while 44% completely

agreed with appraisal and 10% somewhat agreed.

• Majority 64% mostly agreed that executives do a thoroughly job appraisal and analyzing

the factors affecting the performance while 24% completely agreed and 12% somewhat

agreed.

• Mostly 44% used to agreed that performance review taken seriously by managers and

spent time in their discussion while 30% compeletly agreed and 26% aare somewhat

agreed.

109 | P a g e



[Type text]

• Majority 56% agreed that discussion are conducted with high quality and care while 22%

are completely agreed and somewhat are 22%

• 50% respondents agreed that in their appraisal efforts made by appraiser in appraisee

objective while 26% are completely agreed and 22% somewhat agreed,2% slightly

agreed.

• Mostly 46% respondents agreed that training identified during appraisal while 28%

slightly agreed and 26% completely agreed.

• Majority 60% respondents mostly agreed that appraisal data used by human resource

department for other decision like job rotation, job enrichment and responsibility to

appraisal system while 20% respondents are slightly and completely agreed.

• 56% respondents are mostly agreed that appraisal data are used the encouragement of

high performers and desirable behaviour while 24% are slightly agreed and20% are

completely agreed.

• Majority 56% respondents are mostly agreed that officers take appraisal seriously and try

to educate their subordinate to overcome their personal biases and favoritism while 28%

slightly agreed and 16% completely agreed.

• Majority 72% mostly agreed that HRD department provides adequate feedback to line

managers on their rating behavior while 20% completely agreed 8% slightly agreed.

110 | P a g e



[Type text]

• 62% respondents mostly agreed that HRD department actively review appraisal and

discusses with line managers while 14% slightly agreed and 24% completely agreed.

• Majority 64% respondents are mostly agreed performance review committees do a

thorough job in reviewing and using appraisal data while 20% are slightly agreed and

16% are completely agreed.

• Mostly 70% respondents are agreed that appraisal facilitate growth and learning in

organization both for appraisees and appraisers while 22% completely agreed and 8%

slightly agreed.

111 | P a g e



[Type text]

Following are the conclusion from the study:-

The findings of the effectiveness of performance appraisal system are that the employees

are enough educated, skilled and experienced. The organization has a formal way of

appraisal system which is conducted on yearly interval in the organization.

Almost all the respondents seem to be aware of the need and importance of the

performance appraisal system. This could be judged from the fact that almost all the

respondents opined that there should be a performance appraisal system in the

organization.

Performance appraisal system helps in identifying the training needs. All the

organizations do take care of the developmental needs of its employees. Further training

is mostly conducted for those who need training moreover, the employees are helped tounderstand their strengths and weaknesses and also the potentials of the employees are

identified and encouraged to develop.

The main objective of the performance appraisal is “employee development” as a whole,

which will have an effect on organization’s development. But most of the respondents

have given importance on promotion and enhanced responsibility, which is not main aim

of performance appraisal. So for that reason there is a need for the organization to

communicate to the employee the actual goal of the performance appraisal.

Performance appraisal program is taken seriously and it is also believed to be one of the

main areas of human resources department

112 | P a g e



[Type text]

.

Majority of the respondents feel uneasy while giving either low rating or adverse remarks

to the appraissee. This shows that the appraiser make efforts to keep the subjectivity at

bay and also does not hesitate in giving actual ratings to the appraissees based totally on

their performance.

The respondents expressed their willingness and readiness to evaluate and get evaluated

if the appraisal system is devised by incorporating their suggestion. The organization

should try to the maximum possible extent to involve its employees in the appraisal

process.

In the conclusion, it was observed that performance appraisal is done on a regular basis

and it is seen to be the best tool for training and development, promotion and salary

increment.

Appraisal system is followed in a written way and communicated both positive and

negative aspects to the employees during appraisal meetings or discussion.

The organization also gave reorganization and encouragement to the employees through

appraisal system.

113 | P a g e



[Type text]

Following are the suggestion of this system .

The purpose of the performance review is to analyze what a person has done and is doing in

his job in order to help him to do better by developing his strengths or by overcoming his

weakness.

The philosophy and objectives of the performance appraisal system should be clear to anorganization as well as to an employee before it starts parting the system of performance

appraisal. Without this the system would be of little use.

There should proper and regular follow up of the system. The system should be done

according to its analysis and results. This would make the system more effective and

strengthen up properly.

To recognize the individuals excellence, the team should recommend non-monitory

recognition awards to sustain and tone up motivation levels in the entire team.

The appraisal system should help out an individual as well as an organization to grow and

develop.

All the appraisers should understand human behavior. This is the first and fundamental

requirement for a proper performance appraisal system..

114 | P a g e



[Type text]

New techniques of performance appraisal can be implemented for growth of appraiser and

appraise.

BIBLIOGRAPHY

K . A s w a t h a p p a ( 2 0 0 1 )

H u m a n R e s o u r c e a n d P e r s o n n e l M a n a g e m e n t ,

T a t a M c G r a w - H i l l P u b l i s h i n g C o m p a n y .

C . B . M a m o r i a ( 1 9 9 5 )

P e r s o n n e l M a n a g e m e n t

H i m a l a y a P u b l i s h i n g H o u s e .

W i l l i a m s M R ( 1 9 7 2 )

P e r f o r m a n c e A p p r a i s a l i n M a n a g e m e n t

T . V . R a o & U d a y P a r e e k h ( 1 9 9 6 )

R e d i s i n i n g P e r f o r m a n c e A p p r a i s a l S y s t e m .

115 | P a g e



[Type text]

Website :

www . google . com

www . hrhub . com

Thesis :

A Study of Effec t iveness of Performance Appra isa l sys tem.

NilamBajani(APRIL 2009)

Opinion of employees regarding the existing Performance Appraisal system

Raj iv Aneja(May 2008)

http://www.google.com/

http://www.hrhub.com/

http://www.google.com/

http://www.hrhub.com/

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