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A STUDY ON THE CONCEPT OF PERFORMANCE

APPRAISAL AT AL SHIFA HOSPITAL, MALAPPURAM

A PROJECT REPORT

Submittedby

BABU M

In partial fulfillment of the requirement for the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

IN

HUMAN RESOURCE

Underthe guidance of

Mr. R.SANTHOSH KUMAR, MBA

DEPARTMENT OF MANAGEMENT STUDIES

ADHIYAMAAN COLLEGE OF ENGINEERING (Autonomous)

HOSUR-635 109

ANNA UNIVERSITY OF TECHNOLOGY COIMBATORE

MAY- 2011


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BONAFIDE CERTIFICATE

This is to certify that the project report entitled A STUDY ON THE CONCEPT OF

PERFORMANCE APPRAISAL AT AL SHIFA HOSPITAL submittedby BABU-M

(AC09M) isa Bonafiderecord ofthe projectdonebyhimduring theacademicyear2009-2011,

under my guidance and supervision in partial fulfillment of DEGREE OF MASTER OF

BUSINESS ADMINISTRATION.

Date :

Place: HOSUR

Mr. SANTHOSH KUMAR Dr. R CHANDRASEKHAR

(Faculty Guide)) (Director)

Department of Management Studies

Adhiyamaan College of Engineering

(Autonomous)

Hosur 635 109

Tamil Nadu

Vivavoiceexaminationheld on: ___________________

Internal Examiner External Examiner


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DECLARATION

I hereby declare that this project report entitled A STUDY ON THE CONCEPT OF

PERFORMANCE APPRAISAL AT AL SHIFA HOSPITAL submitted to Department of

Management studies, ADHIYAMAAN COLLEGE OF ENGINEERING, HOSUR in partial

fulfillment of the requirement for the award of the Degree of MASTER OF BUSINESS

ADMINISTRATION isa originalworkdonebymeduring the period ofmystudyatthecollegeunder

the supervision and guidance of Mr. R.SANTHOSH KUMAR, MBA, Department of Management

Studies, Adhiyamaan College of Engineering, Hosur.

PLACE: HOSUR BABU M

DATE:


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ACKNOWLEDGEMENTS

Behindeverysuccesslieinvisiblehands ofso manyable personswithoutwhomthisachievementwould

havenevercomeinto existence. I laysomewords of gratitudeto them.

Firstand foremost I humblyexpressmy gratitudeMr. C.SATHEESH GeneralManagerandMr.SURESH

BABU Chief of HR Department for giving me the opportunity to undergo my project training in AL

SHIFA HOSPITAL.

I wouldliketo thankandexpressmysincere gratitudeto my guideMr.SURESH BABU forhisvaluable

guidance, encouragementandsuggestionsthroughoutmy projectwork.

I thankto wholestaff of AL SHIFA HOSPITAL fortheircooperationinthe projectwork. Withouttheir

contributionthisstudywouldnothavebeencompleted.

I proudly utilize this privilege to express my hearty thanks to our PRINCIPAL Dr.

G.RANGANATH, Adhiyamaan College of Engineering, Hosur, for giving me admission in this

prestigiousinstitution. Myspecialwords ofthanksto Dr. R.CHANDRASEKHAR,

DIRECTOR, Department of ManagementStudies. I would like to expressmy sincere gratitude to our

HEAD OF THE DEPARTMENT Dr. V. NAVANEETHAKUMARforhis guidanceand

supportandmy faculty guideMr. SANTHOSH, who helpedmealotincompleting mymini projecttheir

constantencouragementandsuggestion.


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C O N T E N T S

CHAPTER

NO.

T I T L E PAGE

NO.

1EXECUTIVE SUMMARY

I.

IIINTRODUCTION

2-5

1) MEANING AND DEFINITION OF THE STUDY

2) OBJECTIVES OF THE STUDY

3) SCOPE OF THE STUDY

4) LIMITATIONS OF THE STUDY

III RESEARCH METHODOLOGY 6

IV REVIEW OF LITERATURE 7-26

III ORGANIZATIOANL PROFILE 27-43

IV

DATA ANALYSIS AND INTERPRETATION

44-57

V CONCLUSIONS 58-64

1) FINDINGS

2) SUGGESTIONS

3) CONCLUSIONS

4) BIBLIOGRAPHY

5) ANNEXURE


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EXECUTIVE SUMMARY

This Project is on the topic A STUDY ON THE CONCEPT OF PERFORMANCE

APPRAISAL AT AL SHIFA HOSPITAL. In this project I haveexplain the performanceappraisal, how the performance appraisal is done in an organization. I have asked several

question regarding performanceappraisal to employeesandquestionnaire isbeen filledby the

AL SHIFA employees. To knowtheawareness levelandsuccessrate of performanceappraisal

in AL SHIFA.

Performanceappraisalisthe process of obtaining, analyzing andrecording informationaboutthe

relativeworth ofanemployee. The focus ofthe performanceappraisalismeasuring and

improving theactual performance oftheemployeeandalso the future potential oftheemployee.

Itsaimisto measurewhatanemployeedoes.

Performanceappraisalisasystematicway ofreviewing andassessing the performance ofan

employeeduring a given period oftimeand planning forhis future.

Performanceappraisalisnecessaryto measurethe performance oftheemployeesandthe

organizatio

nto

checkthe progresstowardsthedesired goalsa

ndaims.

The objective ofthis projectworkwasto provideabroaderoutlookon Performance Appraisal.

The otherobjective ofthestudyisto knowthe purpose of performanceappraisals.


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INTRODUCTION

MEANING AND DEFINITION OF THE STUDY

MEANING:

Performance appraisal is amethod of evaluating thebehavior of employees in thework spot,

normally including boththequantitativeandqualitativeaspects of job performance. Performance

here refers to the degree of accomplishment of the tasks that make up an individuals job. It

indicates howwillan individuals is fulfilling the jobdemands. Often the term isconfusedwith

effort, but performanceisalwaysmeasuredinterms ofresultsandefforts.

DEFINITIONS:

Performance Appraisalisthe process ofdetermining fromhowwellsome oneis performing in

his orherjobitinvolvesmeasuring performanceandcomparing itwithanestablishedstandard.

-JOHN PEARCE AND RICHARD ROBINSON

Performance appraisal is amethod ofevaluating thebehavior of the employees in thework

spot, normallyincluding boththequantitativeand qualitativeaspects ofthe job performance.

-V.S.P.RAO

Performance appraisal is the system of evaluation of the individual with regard to his/her

performance onthe jobandhis/herpotential fordevelopment.

--Dale S. Beach

Performance Appraisalisasystematic, periodicandanimpartialrating ofemployees

excellenceinmatterpertaining to his/herpresent jobandhis/her potential forabetterjob.

--Edwin B. Flippo


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OBJECTIVES OF THE STUDY

The objective ofthestudyisthesurvival ofevery organizationinthemarketitisveryessential

to enhance its production and productivity. To raise the production and productivity, human

resourcesareimportant factor.

The efficiency of theworkmen raises the productionand productivity Performance Appraisal

Systemcanworkasa goodmotivational factorto improvetheefficiency oftheworkman.

y To studythe Performance AppraisalSystems forexecutionsin AL SHIFA HOSPITAL

PVT .LTD. PERINTALMANNA,

y To studytheemployeesattitudetowards Performance AppraisalSystem.

y To find outthe possibleerrorsand problemsinthe Performance Appraisalsystem.

y To evaluatetheeffectiveness of Performance Appraisalsystem.

y To suggestsomesuitablechangesintheexisting Performance AppraisalSystems

y To understandthesystem of H.R.itscontenttools ofmethodology


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SCOPE OF THE STUDY

Thestudywasintendedto obtaininformationabout:

y The Performancestandards ofanemployee

y The quality of work in the organization since the quality of work depends on the

performance oftheemployee.

y Perceptionamong employeesregarding Performance Appraisal.


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LIMITATIONS OF THE STUDY

y Themajorlimitation ofthestudyisthelimitedtime period of 60-days.

y Itwasdifficult to personally interview a large number ofexecutives and to seek their

opinions onrelevantissues.

y Sample sizebeing small not everybodys view couldbe considered. Problemwillbe

increasedwiththeconfidentialinformation.

y Errorsareintroducedintheappraisalbecause ofadefect orbiasinthe personconducting

theappraisal.

y Thereis oftenalackofcommunicationwherebytheemployeedoesnotknowheisrated.

y Apart from lack of communication, sometimes communication of the rating to the

employee, ifnotdone properly, wouldbetakenasacriticismandmayevenresultinhis

performing more poorly.

y Oftenasupervisorisreluctantto givealowrating to anineffectivesubordinateand gives

himanaveragerating.


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RESEARCH METHODOLOGY:

Method of sampling:

Thebasic idea of sampli

ng is thatby sele

cting some of theeleme

nts i

na populatio

nwemay

drawconclusionabouttheentire population. Thishasan importantbearing onthecollection of

thereliabledata ofthe presentstudyisto acquireanintensive opinionaboutthequality ofwork

lifein AL SHIFA HOSPITAL PVT .LTD. PERINTALMANNA, MALAPPURAM, KERALA

Forthis purposeadescriptiveresearchmethodwas followed forthe presentstudy. Thestudyin

thiscontexthasutilizedavailablematerialaboutvariousaspects of

HRM, data collected throughwell designed questionnaireby giving to the employees of AL

SHIFA HOSPITAL PVT .LTD. PERINTALMANNA,

Sample size: In the present study of performance appraisal in AL SHIFA HOSPITAL PVT

.LTD, 30employeeswereselectedrandomly forsampling

Construction of tools:Thetoolused forcollecting thedata forthestudy isquestionnaire. A

questionnaire is simple, a formulized schedule to obtain and record specified and relevant

informationwith tolerablyaccuracyandcompleteness. Datawascollected througha specially

designedquestionnairewith 15questions.

SOURCES OF DATA: Collection ofdatais formboththe primaryandsecondarysources

Primary data:Data iscollectedthroughawelldesignedandapprovedquestionnaireandalso

interviews

Secondary data:Itiscollected fromtherecords ofthe organization, andSOP fromHRD Dept.

FRAMEWORK OF ANALYSIS:

For analysis and interpreting the collected data through primary data is part to statistical

techniquesnamely, percentageanalysisand graphicalanalysiswithbarcharts. Itisusedarriving

atvalidreliableconclusion.


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REVIEW OF LITERATURE

Thehistory of Performance Appraisalisquitebrief. Itsi

ntheearly

20th

century

canbetra

cedto

Taylors pioneering Timeand Motionstudies. Asadistinctand formalmanagement procedure

used in the evaluation ofwork performance, appraisal really dates from the time ofSecond

World War notmorethan 60yearsago.Yet inabroadersense, the practice ofappraisal isa

veryancientart.

Thereis, says DULEWICZ (1989), abasichumantendencyto make judgmentsaboutthose one

isworking with, aswellasabout oneself. Appraisal, itseems, isbothinevitableanduniversal.

Intheabsence ofacarefullystructuredsystem ofappraisal, peoplewilltendto judgethework

performance of others, including subordinates, naturally, informallyandarbitrarily. Thehuman

inclinationto judgecancreateseriousmotivational, ethicalandlegal problemsintheworkplace.

Withoutastructuredappraisalsystem, thereislittlechance ofensuring thatthe judgmentsmade

willbelawful, fair, defensibleandaccurate.

Performance appraisal systems began as simple methods of income justification. That is,

appraisalwasused to decidewhether ornotthesalary orwage ofan individualemployeewas

justified. The processwas firmlylinkedto material outcomes. Ifanemployee's performancewas

found to be less than ideal, acut in paywould follow. On the otherhand, iftheirperformance

wasbetterthanthesupervisorexpected, a payrisewasin order.

Sometimesthisbasicsystemsucceededin getting theresultsthatwereintended;butmore often

thannot, it failed. Payrateswereimportant, yes;buttheywerenotthe onlyelementthathadan

impact onemployee performance. Itwas foundthat otherissues, suchasmoraleandself-esteem,

couldalso haveamajorinfluence. Asaresult, thetraditionalemphasis onreward outcomeswas

progressivelyrejected.

Inthe 1950sintheUnitedStates, the potentialusefulness ofappraisalastool formotivationand

developmentwas gradually recognized. The generalmodel of performance appraisal, as it is

knowntoday, began fromthattime.


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MODERN APPRAISAL:

Performanceappraisalmaybedefinedasastructured formal interactionbetweenasubordinate

and supervisor, thatusually takes the form ofa periodic interview (annual orsemi-annual), in

which thework performance of the subordinate is examined and discussed, with a view to

identifying weaknesses and strengths as well as opportunities for improvement and skills

development.

Inmany organizations -butnotall-appraisalresultsareused, eitherdirectly or indirectly, to

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

performing employeeswho should getthemajority ofavailablemerit payi

ncreases, bo

nusesa

nd

promotions.

Bythesametoken, appraisalresultsareusedto identifythe poorerperformerswho mayrequire

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

(Organizations need to be aware of laws in their country thatmight restrict their capacity to

dismissemployees ordecrease pay.)

Controversy:

Fewissuesinmanagementstirup morecontroversythan performanceappraisal. Therearemany

reputable sources - researchers, managementcommentators, and psychometricians -who have

expresseddoubtsabout thevalidityand reliability of the performanceappraisal process.Some

haveevensuggestedthatthe processisso inherently flawedthatitmaybeimpossibleto perfect

it. Atthe otherextreme, therearemanystrong advocates of Performance Appraisal.Someview

itas potentially "...themostcrucialaspect of organizationallife"

-LAWRIE (1990)

Link to Rewards:Research (BANNISTOR & BALKIN, 1990) hasreported thatappraises seem to have greater

acceptance oftheappraisal process, and feelmoresatisfiedwith it, whenthe processisdirectly

linkedto rewards.Such findingsareaseriouschallengeto thosewho feelthatappraisalresults

andreward outcomesmustbestrictlyisolated fromeach other.


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INTRODUCTION OF PERFORMANCE APPRAISAL

DEFINITIONS:

Performance Appraisal isthe process ofdetermining fromhowwellsomeone is performing in

his orherjobitinvolvesmeasuring performanceandcomparing itwithanestablishedstandard.

-JOHN PEARCE AND RICHARD ROBINSON

Performanceappraisalisamethod ofevaluating thebehavioroftheemployeesinthework

spot, normallyincluding boththequantitativeandqualitativeaspects ofthe job performance.

-V.S.P.RAO

A FORMAL DEFINITION OF PERFORMANCE APPRAISAL:

The performanceappraisalisthe process ofevaluating the performanceandqualification ofthe

employees interms oftherequirements ofthe job forwhichhe isemployed, forthe purpose of

administration including placement, selection for promotion, providing financial rewards and

otheractionwhichrequiredifferential treatmentamong themembers of group asdistinguished

fromactionsaffecting allmembersequally.

MEANING OF PERFORMANCE APPRAISAL:

Performance appraisal is amethod of evaluating thebehavior of employees in thework spot,

normally including boththequantitativeandqualitativeaspects of job performance. Performance

here refers to the degree of accomplishment of the tasks thatmake up an individuals job. It

indicateshowwillan individuals is fulfilling the jobdemands. Often the term isconfusedwith

effort, but performanceisalwaysmeasuredi

nterms ofresultsa

ndefforts.


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PURPOSES OF PERFORMANCE APPRAISAL:

Performanceappraisalaimsatattaining thedifferent purposes. Theyare:

y To createandmaintainasatisfactorylevel of performance.

y To contributeto theemployee growthanddevelopmentthroughtraining, selfand

managementdevelopment programs.

y To help thesuperiorsto havea properunderstanding abouttheirsubordinates.

y To guidethe jobchangeswiththehelp to continuousranking.

y To facilitate fairandequitablecompensationbased on performance.

y To provideinformation formaking decisionsregarding lay off, retrenchmentetc.

SCOPE OF PERFORMANCE APPRAISAL:

Theworld today isaworld of revolutionarychanges..In thenext fewyears theworldwillbe

witnessing a mega transformation of global economy. India has also been affected by this

change. Newchallengesinvarious fieldsarebeing accepted.

Innovation in the true sense is to be perceivedandunderstood. In the 19th

century itwas the

industrial revolution, which promised India a better future, but now it is the role of the

informationtechnology, whichdecidesthe future.

The stride in industrialization in the 20th century hasbeen a remarkable futurewith various

changes in theworking andmanaging styles of the industries. The advent of the information

technologyalong withtherapidindustrializationin Indiademandsahighlymotivated, educated,

skilled and goal oriented work force. Performance has become the watchword in todays

industrialscene.


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OBJECTIVES OF PERFORMANCE APPRAISAL:

The objective of performa

nceappraisals

chememustrelatedire

ctly to thebusi

nessa

nd growth

needs ofunits of organizationasawhole.

The following aresomeimpotent objectives ofanappraisalscheme:

y Providing information forsuccessionandresource planning.

y Providing abase forimprovedcommutationbetweenbossandsubordinates.

y Identifying andrecording performanceweaknesses.

y Providing abasis foranalysis of performanceand identifying therequiredstandards

andimprovement.

y Identifying potential.

y Mutual feedbackbetweenbossandsubordinate.

COMPONENTS OF APPRAISAL EVALUATION:

A performanceappraisalevaluationmaybeconductedinan organizationdueto manyreasons

suchas

y Counseling

y Promotion

y Research

y Salary

y Administration

So itisverynecessaryto being bystating veryclearlythe objectives oftheevaluation program.

Having done this, the personnel evaluation system should address the questionswho, what,

where, how, of performanceappraisal.


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WHO OF THE APPRAISAL?

The appraisal canbe accomplishedby one ormore individuals involving a combination of

immediatesupervisor, othermanagersacquaintedwithassesseswork, ahigherlevelmanager, a

personnelmanager, theassesses peers, theassesseshimselfandtheassessessub ordinates.

Sometimesselfevaluation isalso employed forevaluating performance.Selfrating emphasizes

humanrelations, whilesuperiors focus ontechnicalknowledgeand initiative. Butthisapproach

had itsdisadvantages i.e., the individualmayratehimselfexcessivelyhighthat itwouldbe if I

hissuperiorratedhim. Because of this fairlyconsistentupwardbias inself-appraisals, thebest

thing wouldbeto usetheseappraisals forcounseling anddeveloping sub ordinates. Theyarenot

useful formaking salaryand promotiondecisions.

Many companies use rating committees to evaluate employees. These committees consist of

supervisors, peers and subordinates. Everyone on the committee is a personwho is able to

intelligently evaluate some aspect of the employees performance. Many discrepancies in the

ratingsmay occurwhenevaluationsarebyindividuals.

WHAT OF THE APPRAISAL?

The what ofthe performanceappraisal, consistinappraising non-supervisoryemployees for

theircurrent performanceandthemanagers of future potentialanditalso includesevaluation of

humantraits.

WHY OF THE APPRAISL?

The why ofanappraisalisconcernedwith?

y Creating and maintaining a satisfactory level of performance of employees in their

present job.

y Highlighting employeeneedsand opportunities forpersonal growthanddevelopment.

y Aiding indecisionmaking forpromotions, transfers, lay offsanddischarges.

y Promoting understanding betweenthesupervisorandthesubordinates.


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y Providing useful criteria fordetermining the validity of selectionand training methods

andtechniquesand forming, concretemeasures forattracting individuals ofhighercaliber

to theenterprise.

WHEN OF THE APPRAISAL?

The whenanswerthequery ofappraisal? Ithasbeensuggestedthat formalcounseling should

occurcontinuously. Themanagershoulddiscussandemployeesworkassoonas possibleafter

hehas judgedit. Heshoulduse goodworkto provide positivereinforcementanduse poorwork

asabasis fortraining.

Inmost organizationemployeesare formallyevaluated onceayear, in otherstwiceayear. New

employeesareratedmore frequentlytha

nthe oldero

nes. Theidealthi

ng isthatea

chemployees

shouldberatedthreemonthsthereafterbeing assignedto a job, aftersixmonths onthe joband

everysixmonthsthereafter. Thetime ofrating shouldnotcoincidewiththetimesalaryreviews,

for ifthetwo occurtogetherconstructiveevaluationandconsideration ofself-developmentwill

probablytakesecond placeto the pressures of pay.

WHERE OF THE APPRAISAL?

The where indicates the locationwhereanemployeemaybeevaluated? It isusuallydoneat

the place ofworkof office ofthesupervisor.

Informalappraisalmaytake placeanywhereandeverywhere, both onthe jobinworksituations

and offthe job.

HOW OF THE APPRAISAL

Underhow, thecompanymustdecidewhatdifferentmethodsareavailableandwhich ofthese

mayuse forperformanceappraisal. Onthebasis ofthecomparativeadvantages, and

disadvantagesitisdecidedwhichmethodwouldsuit purposebest.


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PROCESS OF PERFORMANCE APPRAISAL

IICommunicating

theperformance

standards

III

Measuringactual

performance

IV

Comparingactual andstandard

performance

V

Communicatingthe appraisal

VI

Takingcorrective

action

I

Creating

performancestandards


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METHODS OF PERFORMANCE APPRAISAL

TRADITIONAL METHODS

1) Graphical rating scale:

GraphicRating Scalescompareindividual performancesto anabsolutestandard. Inthismethod,

judgments about performance are recorded on a scale. This is the oldest and widely used

technique. Thismethod isalso knownas linearrating orsimplerating scale. Theappraisersare

suppliedwith printed forms, one foreachemployee. These formscontainanumberof objectives,

behaviorandtraitbasedqualitiesandcharactersto beratedlikequalityandvolume ofwork, job

knowledge, dependability, initiative, attitude, etc., In thecase ofworkersandanalyticalability,

creative ability, initiative, leadership qualities, emotional stability in the case of managerial

personnel.

These formscontainrating ofscale.Rating scalesare oftwo types, viz., continuousrating scale

anddiscontinuousrating scale. Incontinuous orderlike0, 1, 2, 3, 4&5andindiscontinuousscale

MODERN METHODS

1. Behaviorally Anchored

Rating Scales

2. Assessment Center

3. Human ResourceAccounting

4. Management by Objectives

5. Psychological Appraisals

TRADITIONAL METHODS

1. Graphic Rating Scale2. Ranking Method3. Paired Comparison

Method4. Forced Distribution Method5. Check List Method

Simple Checklist Weighted checklist Critical Incident Method Forced choice method

6. Essay/ Free form Appraisal7. Group Appraisal8. Confidential Reports


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theappraiserassignsthe pointsto eachdegree. The points givenbytheraterknow performances

regarding eachcharacterareaddedup to find outthe overall performance. Employeesareranked

basis oftotal pointsassignedto each one ofthem.

One reason for the popularity of the rating scales is its simplicity, which permits many

employeesto bequicklyevaluated.Suchscaleshaverelatively lowdesigncostandhigh incase

of administration. They can easily pin point significant dimensions of the job. The major

drawback to these scales is subjectivity and low reliability. Another limitation is that the

descriptivewords oftenusedinsuchscalesmayhavedifferentmeaningsto differentraters.

2) Ranking Method:-

Under thismethod, theemployeesare ranked frombest to worst onsomecharacteristics. The

raterfirst findstheemployeeswiththehighest performanceandtheemployeeswiththe lowest

performance in that particular job category and rates the former as thebest and latter as the

poorest. Then theraterselects thenexthighestandnext lowestandso onuntilheratesall the

employeesinthat group.

Ranking canberelativelyeasyandinexpensive, butitsrelativityandvaliditymaybe opento doubtit

maybeaffectedbyraterbias orvarying performancestandards.Ranking also means thatsomebody

wouldalso beinthebackbench. Itis possiblethatthelowrankedindividualin one group willturn out

to besuperstarinanothergroup.

One important limitation of the ranking method is that the size of the difference between

individuals is not well defined. For instance, there may be little difference in performance

betweenindividualsrankedsecondandthird, butbig differencebetweenthoserankedthirdand

fourth.

Column I (Best)

1) . . . . . . . . . . . . . . . .2) . . . . . . . . . . . . . . . .3) . . . . . . . . . . . . . . . .4) . . . . . . . . . . . . . . . .5) . . . . . . . . . . . . . . . .


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Column II (Worst)

6) . . . . . . . . . . . . . . . .7) . . . . . . . . . . . .8) . . . . . . . . . . . . . .9) . . . . . . . . . . . . . .10). . . . . . . . . . . . . .

3) Paired Comparison Method:-

This method is relatively simple. Under this method the appraiser ranks the employees by

comparing one employeewith all other employees in the grou p, one at a time. Thismethod

resultsineachemployeebeing givena positivecomparisontotalandacertain percentage oftotal

positiveevaluation.

Pairedcomparisondoesnt forcedistribution ofemployeesineachdepartment. Forinstance, ifa

departmenthastwo outstanding employeesandsixaverageemployeesand pairedcomparisonis

correctly utilized, then those two employees will get a much higher percentage of positive

comparisonthanthe othersix. Pairedcomparisonmethodcouldbeemployed fairly, easilywhen

thenumber ofemployees is less. Thenumber of comparisons requiredequals N (N-1)/2.This

means thatwhere the number is fairly large the techniquemaybe time consuming. Another


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limitation of this technique is that employees are simply compared to each other on total

performanceratherthanspecific jobcriteria.

A B C D E

A - A A A A

B - - C D E

C - - - C E

D - - - - E

E - - - - -

To computeemployees positiveevaluations:

Numberof positiveevaluations x 100 = employees % superiorevaluation.

Totalnumberofevaluations

Employee A Employee B Employee C Employee D Employee E

4/4x100=100% 0/4x100=0% 2/4x100=50% 1/4x100=25% 3/4x100=75%

4) Forced Distribution method:-

Theratermayratehisemployeesatthehigheroratthelowerend ofthescaleundertheearlier

methods. Forceddistributionmethod isdeveloped to prevent theraters fromrating too high or

too low.Under thismethod, the rater after assigning the points to the performance of each

employeehasto distributehisratingsina patternto conformto normal frequencydistribution.


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Thus, similar to the ranking technique, forced distribution requires the raters to spread their

employeeevaluations ina prescribeddistribution. Thismethodeliminatescentral tendencyand

leniencybiases. However, inthismethodemployeesare placed incertainrankedcategoriesbutnotrankedwithinthecategories. Quite oftenworkgroupsdo notreflectanormaldistribution of

individual performance. Thismethod isbased on the rather questionable assumption that all

groups ofemployeeswillhavethesamedistribution ofexcellent, averageand poorperformers.

If onedepartmenthasall outstanding employees, thesupervisorwould finditextremelydifficult

to decidewho shouldbe placedinthelowercategories. Difficultiescanalso arisewhentherater

mustexplainto theemployeewhyhewas placedin one grouping and otherswere placedin one

grouping and otherswere placedinhighergroupings.

5) Checklist Methods:-

Thechecklistisarating techniqueinwhichthesupervisoris givenalist ofstatements orwords

asked to check statements representing thecharacteristicsand performance ofeach employee.

Therearethreetypes ofchecklistmethods, viz., simplechecklist, weightedchecklistand forced

choicemethod.

I) Simple Checklist Method:

Thechecklistconsists of largenumber ofstatementsconcerning employeebehavior. Therater

checks to indicate if the behavior of employees is positive or negative to each statement.

Employee performance israted onthebasis ofnumberof positivechecks. Thenegativechecks

arenotconsideredinthismethod. A difficulty oftenarisesbecausethestatementsmayappearto


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be virtually identical indescribing theemployee. Thewords or statementsmay havedifferent

meaningsto differentraters.

II) Weighted checklist method:

Thismethod involvesweighting different items in thechecklist, having a series of statements

aboutanindividual, to indicatethatsome ormoreimportantthan others. Theraterisexpectedto

look into the questions relating to the employeesbehavior, the attached rating scale and tick

thosetraits thatcloselydescribe theemployeebehavior. Often theweightsarenot given to the

supervisorswho completetheappraisal process, butarecomputedandtabulatedbysomeoneelse

suchasamemberofthe personnelunit.Inthismethodthe performanceratings oftheemployee

aremultipliedbytheweights ofthestatementsandthecoefficientsareaddedup. Thecumulative

co-efficient istheweighted performancescore oftheemployee. Weighted performancescore is

comparedwith the overallassessmentstandards in orderto find outthe overall performance of

theemployee. Theweightedchecklist, however, isexpensiveto design, sincechecklist foreach

different job inthe organizationmustbe produced. Thismay provetimeconsuming also inthe

end. Though theweightedchecklistmethod isevaluativeaswellasdevelopmental, ithas the

basic problem of the evaluator not knowing the itemswhich contributemostly of successful

performance.

III) Forced Choice Method:-

Thismethodwasdevelopedattheclose of WorldWar II.Underthismethod, alargenumberof

statementsin groupsare prepared. Each group consists of fourdescriptivestatementsconcerning

employeebehavior. Two statementsaremostdescriptiveand two are leastdescriptive ofeach

tetrad.Sometimestheremaybe fivestatementsineach group out ofwhich onewouldbeneutral.

Theactualweightages of the statementsarekept secret. Theappraiser is asked to select one

statementthatmostlydescribesemployeesbehaviorout ofthetwo favorablestatementsand one

statement fromthetwo unfavorablestatements. The itemsareusuallyamixture of positiveand

negative statements. The intent is to eliminate or greatly reduce the raters personal bias,

specially the tendency to assignallhigh or lowratings. The itemsaredesigned to discriminate

effective fromineffectiveworkersaswellasreflectvaluable personalqualities.


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IV) Critical Incident Method:-

Employeesarerateddiscontinuously, i.e., onceinayearorsixmonthsundertheearliermethods.

The performanceratedmaynotreflectrealand overall performanceastheraterwouldbeserious

about appraisal just two or three weeks before the appraisal. Hence a continuous appraisal

method, i.e., critical incident method has been developed. Under this method, supervisor

continuouslyrecords thecritical incidents oftheemployee performance orbehaviorrelating to

allcharacteristicsinaspeciallydesignednotebook. Thesupervisorratesthe performance ofhis

subordinates onthebasis ofnotestakenbyhim.

Sincethecriticalincidentmethoddoesnotnecessarilyhaveto beaseparaterating system, itcan

be fruitfullyemployedasdocumentation ofthereasonswhyanemployeewasratedinacertain

way.

Thecriticalincidentmethodhastheadvantage ofbeing objectivebecausetheraterconsidersthe

records of performance rather than the subjective points of opinion, for example, mood,

emotional balance, relationship between superior and subordinate. This certainly helps in

reducing bias in the evaluation. However, the system is notwithout drawbacks. First, what

constitutesacritical incident isnotdefined in the samemannerbyall raters. Next, recording

eventscontinually overa period oftimemayberesentedbytheraters.

6) Essay / Free Appraisal:-

This method requires the manager to write a short essay describing each employees

performanceduring therating period. This formatemphasizesevaluation of overall performance,

based onstrengths/weaknesses ofemployee performanceratherthanspecific jobdimensions. By

asking supervisors to enumerate specificexamples ofemployeebehavior, theessay technique

minimizessupervisorybiasandhalo effect.

Thetimeinvolvedinwriting separateessaysabouteachemployeecanbe formidable. Essaysare

notamenable forevaluationandanalysis;50essaysdescribing differentemployees performance

cannot be tied to merit increases and promotion possibilities because there is no common

standard. Another inherent limitation of thismethod is that the evaluatorsmay have unequal

skillsinwriting theessays. A skillfulwritercan presentamoredramaticcaseaboutanemployee


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than an awkwardwriter or supervisor. Thus, the quality of the ratings depends, actually on

employee performance, but onthewriting ability oftherater.

7) Group Appraisal:-

Underthismethod, anemployeeisappraisedby group ofappraisers. This group consists ofthe

immediatesupervisoroftheemployee, to othersupervisorswho haveclosecontactwiththe

employeeswork, managerorhead ofthedepartmentandconsultants. Thehead ofthedepartment

ormanagermaybethechairman ofthe group andtheimmediatesupervisorenlightens other

membersaboutthe jobcharacters, demands, standards of performanceetc. Thismethodiswidely

used forpurposes of promotion, demotionandretrenchmentappraisal.

8) Confidential Reports:-

Assessing the employees performance confidentially is a traditionalmethod of performance

appraisal.Under thismethod, superiorappraises the performance ofhissubordinatesbased on

his observations, judgment and intuitions. The superior keeps his judgment and report

confidentially. In otherwordsthesuperiordoesnotallowtheemployeeto knowthereportand

his performance. Superior writes the report about his subordinates strength, weaknesses,

intelligence, attitudeto work, sincerity, commitment, punctuality, attendance, conduct, character,

friendliness, et

c.

Thoughconfidentialreport isa traditionalmethod, most ofthe publicsectororganizationsstill

follow this method in appraising the employees performance. This method suffers from a

numberoflimitations.

MODERN METHODS

1) Behaviorally Anchored Rating Scales (BARS):-

Thebehaviorallyanchoredrating method (BARS) methodcombineselements ofthetraditional

rating scalesandcritical incidentsmethods.Using BARS, jobbehaviors fromcritical incident-

effective and ineffective behaviors are described more objectively. The method employs


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individualswho are familiarwitha particular job to identify itsmajorcomponents. They then

rankandvalidatespecificbehaviors foreach ofthecomponents.

How to construct BARS?

Developing a BARS followa general formatwhichcombinestechniquesemployedinthecritical

incidentmethodandweightedchecklist ratings scales. Emphasis is pinpointed on pooling the

thinking of peoplewho willusethescalesasbothevaluatorsandevaluees.

Step I: Collect Critical Incidents: Peoplewithknowledge ofthe jobto be probed, suchas job

holdersandsupervisors, describespecificexamples ofeffectiveandineffectivebehaviorrelated

to job performance.

Step II: Identify Performance Dimensions: The people assigned the task ofdeveloping the

instrument cluster the incidents into a small set of key performance dimensions. Generally

between fiveandtendimensionsaccount formost ofthe performance. Examples of performance

dimensions include technicalcompetence, relationshipswithcustomerhandling or paperwork,

andmeeting day to day deadlines. While developing varying levels of performance for each

dimension, specificexamples ofbehaviorshouldbeused, thiscould laterbescaled in terms of

good, average orbelowaverage performance.

Step III:Reclassification of Incidents: Anothergroup of participationwho areknowledgeable

about the job instructed to retranslate or reclassify the critical incidents generated previously.

They are given thedefinition of jobdimensionand told to assigneachcritical incident to the

dimensionthatitbestdescribes.

Step IV: Assigning Scale Values To The Incidents: Eachincidentisthenrated ona oneto nine

scalewithrespectto havewell itrepresents performance onappropriatedimension. A rating of

onerepresentsineffective performance;thetop scalevalueindicatesveryeffective performance.

The second grou p of participants usually assigns the scale values. Means and standards

deviationsarethencalculated forthescalevaluesassignedto eachincident. Typically incidents

thathavestandarddeviations of 1.50 orlessareretained.

Step V: Producing the Final Instruments: Aboutsix orseven incidents foreach performance

dimensionallhaving metboth the retranslationand standarddeviationcriteriawillbeusedas


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behavioralanchors. The final BARSinstrumentconsists ofaseries ofverticalscalesanchoredby

the finalincidents. Eachincidentis positioned onthescaleaccording to itmeanvalue.

Becausetheabove processtypicallyrequiresconsiderableemployee participation, itsacceptance

bybothsupervisorsand theirsubordinatemaybe greater. Proponents of BARSalso claim that

suchasystemdifferentiatesamong behavior, performanceandresults, andconsequently isable

to provideabasis forsetting developmental goals for theemployee. Because it is jobspecific

and identifies observable andmeasurablebehavior, it is more reliable and validmethod for

performanceappraisal.

Researchers, after surveying several studies on BARS, concluded that despite the initiative

appeal of BARS, findings from research havenotbeen encouraging. Ithasnot proved to be

superiorto othermethodsin overcoming ratererrors orinachieving psychometricsoundness. A

specific deficiency is that thebehaviors used are actively oriented rather than result oriented.

Thiscreatesa potential problem forsupervisordoing theevaluation, who maybe forcedto deal

with the employeeswho are performing the activitybut not accomplishing the desired goals.

Further, itistimeconsuming andextensiveto create BARS.

2) Assessment Centre:-

This method of appraising was first applied in German Army in 1930. Laterbusiness and

industrialhousesstartedusing thismethod. This isnotatechnique of performanceappraisalby

itself. In fact it isasystem ororganization, whereassessment ofseveral individuals isdoneby

variousexpertsbyusing varioustechniques.

Inthisapproachindividuals fromvariousdepartmentsarebroughttogetherto spendtwo orthree

daysworking on individual or group assignment similar to the ones theywouldbe handling

when promoted. Observersrankthe performance ofeachandevery participantin orderofmerit.

Sinceassessme

ntcentersaremea

nt forevaluati

ng the pote

ntial of

candidatesto be

considered for

promotion, training or development, they offer an excellentmeans for conducting evaluation

processinan objectiveway. Allassesses getan opportunityto showtheirtalentsandcapabilities

and secure promotion based on merit. Since evaluators know the position requirements

intimately and are trained to perform the evaluation process in an objective manner, the

performanceratingsmay find favorwithmajority oftheemployees. A considerableamount of


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research evidence is available to support the contention that people chosen by this method

throughbetterthanthosechosenby othermethods.

3) Human Resource Accounting:-

Itdealswith cost and contribution ofhuman resources to organization. Cost of the employee

includes cost ofman power planning, recruitment, selection, induction, placement, training,

development, etc. Employeecontributionisthemoneyvalue oftheemployeeservicewhichcan

bemeasuredbylabourproductivity orvalueaddedbyhumanresources.

Cost ofhumanresourcescanbe takenasstandard. Employee performancecanbemeasured in

terms of employee contribution to the organization. Employee performance canbe taken as

positivewhencontribution ismore than thecostand performancecanbeviewedasnegative if

costismorethancontribution. Positive performancecanbemeasured interms of percentage of

excess ofemployeecontribution overthecost ofemployee.Similarly, negative performancecan

be measured in terms of percentage of deficit in employee contribution over the cost of

employee. This% canberankedto zero level.

Thistechniquehasnotdevelopedandstillitisintransitionstage.

4) Management by Objectives:-

This method is given by Peter Ducker, establishes results which workers or managers

expected, bymutualagreementwith theirsupervisors, to achieveduring a particular period of

time. Ideally, MBO takesinto accounttheneedsand goals ofthe organization, aswellasthose of

theindividual.

Fourstepsdepictthemethod:

1. Setting performance goals ortargets.

2. Recording performanceagainst goals

3. Counseling on progressagainst goals

4. Reviewing finalresultsagainst goals.


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5) Psychological appraisal:

Psychological appraisals are conducted to assess the employee potential. Psychological

appraisalsconsists of (a)in-depthinterviews,(b)psychologicaltests (c)consultantsanddiscussions

with theemployee,(d)discussionswith thesuperiors, sub-ordinatesand peers, and (e)review of

otherevaluations.

Evaluation is conducted in the areas of (a)employees intellectual abilities, (b)emotional

stability, (c)motivational responses, (d)reasoning and analytical abilities, (e)interpretation and

judgment skills, (f)sociability, (g)employees ability to comprehend the events and ability to

foreseethe future.

The psychological appraisals results are useful for decision-making about (1) employee

placement (2) careerplanning anddevelopment, and (3) training anddevelopment.

6) 360O

FEEDBACK:

SUPERVISORS: Supervisors include superiors of the employee, other superiors having

knowledgeabouttheworkoftheemployeeanddepartmenthead ormanager. General practiceis

thatimmediatesuperiorsappraisethe performancewhichinturnisreviewedbythedepartmental

head/manager. Thisisbecausesupervisorsareresponsible formanaging theirsubordinatesand

theyhavethe opportunityto observe, directandcontrolthesubordinatecontinuously. Moreover,

theyareaccountable forthesuccessful performance oftheirsubordinates.

PEERS: Peerappraisalmaybe responsible if thework group is stable overa reasonably long

period of time and performs tasks that require interaction. However, little research hasbeen

conductedto determinehow peersestablishstandards forevaluating others orthe overalleffect

of peerappraisal onthe groupsattitude.

SUBORBINATES: Theconcept ofhaving superiorsratedbysubordinatesisbeing usedinmostorganizations today, especially indeveloped countries.Such a novelmethod canbeuseful in

otherorganizationalsettingstoo providedtherelationshipsbetweenandsubordinatesarecordial.

Subordinatesratingsinsuchcasescanbequiteusefulinidentifying competentsuperiors.


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PROFILE OF AL SHIFA HOSPITAL

AlShifa Hospital Pvt. Ltd., aMultiSuperSpecialty Tertiary LevelReferralHospital, established

in 1989asa NRI venturehaving 450beds, over30disciplines ofvariousspecialtiesandsuper

specialtieswithmorethan 60consultants of Nationalreputation. AlShifaisacompletehospital

providing totalhealthcareat National/Internationalstandards in its truesensewith its team of

highly skilled & experienced medical professionals with support work force of over 750

employees. Al Shifa provides treatment services to more than 200-300 patients of foreign

nationalityeveryyear.

We are an ISO 9001-2000 & ISO 14001-2004 certified hospital having one of the best

Orthopedicand traumacarecenters inSouth India, also the firsthospital in Kerala to perform

Computer Navigated Joint Replacement Surgeries. Al Shifa is also a centre for Cochlear

Implantationand Kidney Transplantation. Onhumanitarian grounds, themanagementhasalso

evolveda Charitable Trustwitha greatvisionto help the poor, needyand people fromthelower

level of society availing facilities like free/concessional Dialysis, Kidney Transplantation and

various other treatmentexpenses. Manywell-wishersdo also contribute for thismagnanimous

charitable service. Al Shifa Hospital Pvt. Ltd. is also accredited by the National Board of

Examinations-Govt. of India, forP.G studiesinvariousdisciplines.

The Directors of the Hospital have also formed a Trust in the name ofShifa Medicare Trust

having MinorityStatuswithmain objective of theupliftment of professionaleducationamong

theSociallyand Economicallybackwardarea of Malabar. The Trusthasestablishedanumberof

Educational InstitutionsunderShifa Institute of MedicalSciences [SIMS] forvarious Courses

like; Post Graduate, Degreeand Diplomastudieswhere over1000 ofstudentsaresuccessfully

continuing theirstudieseveryyear.Serveandcare inthebestwayby providing thebestquality

treatmentatanaffordablecostis ourstrategy. Theworldis ourdomainand serviceto humanity

is ourslogan. Overtheyears AlShifa Group, headedby Mr. P.Unneen, Chairman& Managing

Director, has carved for itselfa name to reckonwith creating an atmosphere conducive for a

healthyandbettertomorrow.

Westronglybelievethat oursuccessvestbythe Grace of God Almighty.


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BOARD OF DIRECTORS

Mr. P.UNNEEN MANAGING DIRECTOR

Mr. K. T. ABDUL RASSAQUE FINANCE DIRECTOR

Mr. P. HAMZA OPERATION DIRECTOR

Mr. P. K. MOHAMMED HAJI PUBLIC RELATION DIRECTOR

Dr. AHAMMED AMEEN MEDICAL DIRECTOR

Dr. M. K. IBRAHIM OVERSEAS DIRECTOR


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MISSION

"Quality Treatment at an affordable cost"

VISION

Providing bestPatient experience, safety and outcome providing seamless healthcare services.

Providing treatment faster, better at an affordable cost.

CORE VALUES

Compassion: We put you and your being at the center of all that we do. Treating with respect,

compassion and dignity.

Commitment: We uphold your trust by maintaining highest professional integrity and

standards.

Excellence:We will continually seek advancement and innovation to achieve better health care.

Team Based Care: We dedicate and combine our skills, Knowledge, expertise and experience

for your sole benefit.

Value: We seek always to create and deliver value for you.


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QUALITY POLICY

"To our patients the best" Signifies our commitment

We focus on: -

Providing best patientexperience, safetyand outcome.

Providing seamlesshealthcareservice.

Providing treatment faster, betterataffordablecost.

We pledgeto enforcehighstandardsand practicesthroughcontinualimprovementinthequality

managementsystemto assurethattheservicesmeetandexceedtheexpectations of ourpatients,

clientandthecommunity.

ENVIRONMENTAL POLICY

AL SHIFA HOSPITAL PVT LTD isdedicatedto providebetterhealth, wellbeing andsafetyto

its patients, employees, customers, communityandtheenvironment.

Thisisachievedthrough-

Protecting naturalhabitatsthroughefficientuse ofnaturalresources

Reducing pollutionto airwaterandland

Promoting minimization ofwaste

Conservation ofnaturalresources

Furtherthehospitaliscommittedto bring continualimprovementto prevent pollutionand

compliancewithallapplicablelegaland otherrequirements


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2002 : Established AlShifa College of Pharmacy

Recipient of GoldMedal forthe performancesin Orthopedics

Rajeev Gandhi Award of Excellenceto Department of Gynecology& Department of

Oral& Maxillofacialsurgery

Regularlyconducting CMEs, Seminars, & Medical Camps

Regularparticipant of Quality AssesmentScheme of CMC Vellore forLaboratory

medicine, also bagging the 18thrank

2003 : Inauguratedthe Catheterisation Laboratory

2004 : Upgradedthehospitalbedstrengthto 450

2004 : SignedMOUwiththeMinistry of Defiance ,New Delhito provide cashless

treatmentto ExServicemenandtheirdependentsenrolledin ECHS

Anelaboratedivision forHealth CareManagement

2005 : Established AlShifa College of ParamedicalSciences

2006 : Inauguratedthe First Blood Bank& ComponentSeparationUnitinthe Private

SectorinSouthMalabar

2006 : Award fromtheState Pollution Control Board forthe Best Big Hospital

2007 : Inaugurated ComputerNavigated JointReplacement (CNJR) , Ortho Pilot III.

Secondin India


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ORGANIZATION POLICIES

MANPOWER REQUIREMENT:

y To takespecification forJobrequirementinthe prescribed format forall jobs opening in

the Organization.

y Allthevacanciesaredisplayedinthenoticeboard foremployeesto apply. Thesameisto

facilitateequal opportunities foremployees of Organization.

y All openingsareintimatedto employmentexchange.

y Allvacanciesarise, eitherdue to resignations ornew openings, first option is given to

existing employeesinthe Organizationandtheywillundergo forselectionbased ontheir

job opening.

y To competence requirement for all positions in the Organization the GM-HR should

consultwiththe HODS

SELECTION AND RECRUITMENT:

y Thevacanciesareidentifiedineach Departmentandselectionismadewiththe profile of

the person needed for filling the vacancy. The first option is given to the existing

employees.

y Forall openings, the HR Department personnel conduct preliminary interview and the

ratingsare given.

y Whenever fresherarerecruited for job opening, selection process includes, written test,

whereincandidateisrequiredto score 60% marks forfurtherInterviewsandSelections.

y Short listed personsarecalled for Interviewsby the Hospital Administrator forsuitable

placeanddate.

INDUCTION/ORIENTATION:

y Introducetheemployeeto thestaff.

y Explainhimthe Organization History, Hierarchy, Gradestructure


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y Appraisehimtherulesandregulations ofthe organization

y Put him under training in Departments to understand the role of each Department

wherehe/sheis going to work.

y Maintaininductiontraining record.

PERFORMANCE APPRAISAL:

y The performance Appraisal iscarried out onceeveryyear forallassociatesandafterthe

completion of oneyearfornewrecruits.

y Traineeswillbeassessed oftheirperformanceaftercompletion of3/6 months.

y Aftertheirpotentialappraisaltheyarerecommended forpromotion.

TRAINING:

y Atleast20managersundergo Managementdevelopmenttraining inayear.

y To maintain record related to competence, education, awareness, and training for all

associates.

y Induction, training is given fornewlyrecruited personnel.

y Onthe jobtraining is givento allstaffdepending uponrecruitment.

FEED BACK:

Afterreturning fromthetraining theeffectiveness oftraining isverifiedbythe HOD and

forwardedto GeneralManager-HR forperusal of Manager.


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PERFORMANCE APPRAISAL SYSTEM IN AL SHIFA HOSPITALS

1.Purpose:To laydown policy guidelines forimplementation ofthe PerformanceManagement

System.

2.Scope:This policywillbeapplicable to allassociates of Careexcept trainees, apprentices

andcontractstaff.

3. Responsibility: All HODs are responsible to ensure that the appraisals are completed on

time. HR Departmentwill facilitate andmonitor the process. The HR Departmentwill also

acquaintthe HODs/appraiser/appraisesaboutthe PerformanceManagementSystem.

4. Accountability: TheUnit HR in chargeunder the overall supervision of the HA willbe

accountable fortheappropriate implementation ofthe Performance ManagementSystem in the

unitwhilethe CHRD willresponsible foritsimplementationatthe Corporateand forassociates

attheseniorandmiddle levels ofmanagement. Queries onmatter of policywillbereferred to

Corporate HR forclarification.

5.Procedure:

5.1} Performance management is a method used to measure and improve effectiveness of

associatesattheworkplace. Itisasystemcomposed ofseveralactivitiesincluding goalsetting,

tracking changes, coaching, motivationandassociatedevelopment.

5.2} The performancemanagementcyclebeginswith goalsetting. Performance is then tracked

against the associates goals and eventually appraised in a formal end of appraisal period

meeting. An informalmidappraisal periodreviewwillalso beheld. Theresults ofthe formal

appraisalwill feedin

to theinc

en

tive/inc

remen

tsystem.

5.3} It has been decided to adapt a Strategy Based Performance Management System. The

schematicrepresentation ofthesystemisat Annexure 1. Themodelwillhavethe following four

phases : -


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Performance Planning: Atthebeginning oftheappraisal periodtheappraiserandappraisee

will gettogether fora performance planning meeting. Inthissessiontheydiscussasto whatthe

associatewillachieveduring theappraisal period. The objectives, Key Performance Indicators,

thecompetencydesired oftheappraiseeandtheindividualdevelopmental plansarerecorded on

the Performance Planning Formandkeptwiththe personal file oftheassociatethatismaintained

inthe HRDepartment.

Performance Execution: Over the course of the appraisal period the associateworks to

achieve the goals, objectives and key responsibilities. The appraiser coaches and provides

feedbackaswell ascreatesconditions thatmotivatesand resolves performance problems that

arise. A semi-formal periodicreview isheldto review performanceandsetcorrections in order

to enabletheappraiseeachievethelaiddown objectives.

Performance Assessment: Thisistheappraisalsystemwhereinthesupervisor/appraiserhas

to fill outan Assessment Form. The Appraisal Formsandacopy of the Performance Planning

Formswillbesentby the HR Department to theappraiser. . Thecompletedappraisal form is

reviewed by the supervisor senior (boss) and submitted to the HR Dept who in turn will

scrutinizethesame foritscorrectness.

The performanceassessment oftheappraiserwillbeshownto theappraiseeandsignedbyboth.

However the remarks/assessment of theReviewing Officerwillnotbe shown to theappraisee

andwillbekeptconfidential. Thisisameasureto bring in objectivity, asalso avoida oneman

report aswellaseven outtheinflationarytrendthatis generallyseeninappraisalsthathaveto

be shown to the appraisee. Appraisal forms of HOD (Unit) will also be endorsed by the

Corporate Headinthestaff/departmentalchannel ofreporting.

Performance Review: The appraiser and the appraiseemeet and discuss the assessment.

Theywillalso setadateto hold performance planning discussion forthenextappraisal period, at

which point performanceappraisalstartsanew.


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6. Purpose of Performance Appraisal: A performance appraisal serves the following

purpose:-

6.1} Provides feed back to associates about their performance and encourages enhanced

performance

6.2} Determineswho getsincentiveand promotion

6.3} Counseling of poorperformers

6.4} Determinestraining anddevelopmentneeds

6.5} Confirming that goodhiring decisionsarebeing made

6.6} Facilitateslayoffanddownsizing decisions.

7) Types of Appraisal Forms:

Depending uponthemanagerial level, separatetypes of Appraisal Formswillbe formulatedby

the Corporate HR Departmentandused forSeniorManagement, Mid Level Managementand

JuniorManagerial Cadre. At the Executive Level onlyan Appraisal Cardwillbeused for the

assessmentsystem.

8) Filing and Handling of Appraisal Forms:

The Appraisal Form is a privileged document. It shouldbe treatedwith confidentiality. The

receipt/dispatch of the Forms shouldbe done in a secure/confidential envelope. The Form

should finally get filedinthe personal file oftheindividual.

9) Criteria for initiation of Appraisal Forms:

The following willbethenorms forinitiation ofthe Appraisals

9.1} Theappraiseeshouldhaveserved foratleast90daysundertheappraiser. Incasehe/shehas

notserved for90days then the previoussupervisorwillbeeligible to initiate theappraisal. In


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casehe/shehasserved forlessthan90daysin Carethenhe/shewillbeeligible foranappraisal

inthesucceeding appraisal period.

9.2} Allappraisalswillbereviewedandendorsedby thenextsenior in the line ofreporting to

theappraiser.

9.3} Appraisals of all HODs (at unit) will also be endorsedby the staff functional head at

Corporate.

9.4} Associatesbelow the grade of Manager (or equivalentdesignation) will notnormallybe

eligible to endorse theappraisal. Incase theappraiser isatadesignation lower than that ofa

Managerthenaspecialdispensation ofthe CHA/HA/Corporate Headshouldbetakento permit

initiation.

9.5} Incasetheappraiserandappraiseeare ofthesamedesignationthenthenextsenior in line

shouldinitiatetheappraisal.

9.6}Specialendorsementscanbemadebythe MD/ HA/COO/CEO/Chairman onanyappraisal

form Queries on eligibility of initiation should be addressed to Unit/Corporate HR for

clarification.

10) Special Performance Reviews:

Special performancereviewscanbe initiatedasnecessitatedbyextraneouscircumstancessuch

as special achievements or review of trainee cadremanagerial staffseeking to come onto the

regular roles. In such cases approval of CHRD shouldbe sought to initiate special appraisal

reports.

11) Appraisal Period:

Theappraisal periodanddates fori

nitiatio

n/completio

nof Appraisal Formsa

nd payme

nt of

incrementswillbeas follows:-


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Grade Appraisal

Period

DATE

Initiation Completion of

Appraisals

Forms

Payment of

Increment

Senior

Management

(G10-G12)

01Apr-31Mar

(nextyear)

01Apr 20Apr July

Middle Level

Management

01Apr-31Mar

(nextyear)

01Apr 20Apr June

JuniorLevel

Management

01Jan-31Dec 01Jan 31Jan May

Executive

Cadre

01Jan-31Dec 01Jan 15Feb April

Nursing

Cadre

01Oct-30Sep

(nextyear)

01Oct 30Oct November


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12) Performance Rating:

Associateswillbe assessedby the appraiser on various individual qualities aswell as their

overall performance onratingsasunder:-

12.1. Performancerating A- Performanceexceptionalandconsistentlyhighlevel

12.2. Performance rating B- Performance superior and consistently exceeds overall

performancerequirements

12.3. Performance rating C- Performance satisfactorymeetsmost parameters of performance

requirements.Weaknesses offsetbystrong points.

12.4. Performance rating D- Below satisfactory performance. However displays progress

towardsanenhanced performance

12.3. Performance rating E- Poor performancedue to being relativelynew to assignment or

definiteweakness.

13) Performance Incentive:

Incentiveswillbe paid onceayearalong withtheannualincrement. Allincentiveswillbebased

on

a pay-

for-

performanc

e sc

heme. The performanc

e inc

en

tivewillbe paid asmerit pay an

dadded to thebasesalary. As per overall rating of theReviewing Officer, theappraiserwillbe

authorizedthe following percentages ofincentive:-

13.1 PerformanceRating A - 15%

13.2 PerformanceRating B - 12 %

13.3 PerformanceRating C - 10 %

13.4 PerformanceRating D -08%

13.5 PerformanceRating E - 00%


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14) Variable/ Fixed Component of Incentive:

Theamountsetaside forannualincrementand performanceincentivewilldepend onbudgetary

allocation. However the maximum amount that an associate can receive as incentive or

incrementwillbe20 % of grosssalary. Theamount ofincrement/incentivethatanassociatecan

be paidwillbeas fixed ( i.e.assured ) componentandvariable ( ieas pay-for- performance )

componentwilldepend onthemanagerialcadreandallocatedasbelow:-

Grades Fixed Component Variable Component

Executive Level 75% 25%

JuniorManagement 60% 40%

MiddleManagement 40% 60%

SeniorManagement 25% 75%

15) Other Merit Incentive Options:

Thecompanymaydecideto give otherforms ofmeritincentives. Theycanbeas follows:-

15.1 Annual Bonus

15.2 Team Incentives

15.3 Departmental Incentives

15.4 Ex gration payments

15.5 AssociateStockOwnership plan

16) Debarment from initiation of Appraisals:

Anyassociatewho isunderdisciplinary proceedingswillbedebarred frominitiation of

appraisals. Insuchcasesthenextsupervisorintheline ofreporting willinitiate.


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DATA ANALYSIS

1) Do youunderstandtheterm Performance Appraisal?

a) Yes b) No

Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

Yes 26 86.7%

No 04 13.3%

Graphical Representation of collected data:

Source: Fromthequestionnaire givento theemployees.

Analysis:Theabove table reveals that86.7% of theemployees say that theyunderstand the

term of performanceappraisals, 13.3% oftheemployeessaythattheydo notunderstandtheterm

of Performanceappraisals.

Interpretation: Most of the employees say that they understand the term performance

appraisals.

020

40

60

80

100

No. of

Employees

percentage

YES

NO


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2) Is AL SHIFA Hospitalsimplementing Performance Appraisals?

a) Yes b) No



Yes 28 93.3%

No 2 6.7%



Analysis: The above table reveals that 93.3% of the employees say that they agree that AL

SHIFA HOSPITAL implementing the performanceappraisals, 6.7% oftheemployeessay that

notimplementing the performanceappraisals.

Interpretation: Most of the employees say that AL SHIFA HOSPITAL implementing the

performanceappraisals.

020

40

60

80

100

No. of

Employees

percentage

YES

NO


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3) Areyouawarewiththe procedure of Performance Appraisal?

a) Yes b) No



Yes 27 90%

No 03 10%



Analysis:Theabovetablerevealsthat90% oftheemployeessaythattheyawarethe procedure

of performance appraisal and remaining 10% of employees says that they are not aware the

procedure of performanceappraisals.

Interpretation: Most of the employees say that they know the procedure of performance

appraisals.

0

20

40

60

80

100

No. of

Employees

percentage

YES

NO[


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5) Atwhat frequency Performance Appraisalsystemisevaluated?

a) Promotion b) AfterProbation

c) Annually d) Alltheabove



Promotion 2 6.7%

AfterProbation 2 6.7%

Annually 25 83.3%

Alltheabove 1 3.3%

Graphical representation of collected data:


Analysis: Theabovetablerevealsthat83.3% oftheemployeessaythatAL SHIFA HOSPITAL

performanceappraisalsystemwillevaluatedatannuallyand3.3% ofemployeesaresaythat All

theabove,6.7% ofemployeesaresaythat Promotionandafterprobation.

Interpretation: Most of the employees agree that the performance appraisal systemwillbe

evaluated onceinyearly.

0

10

20

30

40

50

60

70

80

90

No. of

Employees

percentage

PromotionAfterProbation

Annually

Alltheabove


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6) Whichyou feelismorecomfortableandadvisable?

a) Selfappraisalsystem b) Confidentialreportsystem



Selfappraisalsystem 16 53.3%

Confidentialreportsystem 14 46.7%



Analysis: The above table reveals that 53.3% of the employees say that they feel that self

appraisal system will be more comfortable and advisable, 46.7% of employees says that

confidentialreportsystemwillbemorecomfortableandadvisable.

Interpretation: Most of the employees agree that Self appraisal system will be more

comfortableandadvisable.

0

10

20

30

40

50

60

No. of

Employees

percentage

self appraisal

confidential


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7) Do youreceiveyourPerformance Appraisalreportafteritisevaluated?

a) Yes b) No



Yes 12 40%

No 18 60%



Analysis: Theabovetablerevealsthat40% oftheemployeessaythattheyreceivetheappraisal

reportafter itisevaluated, 60% ofemployeessaysthattheydontreceivetheirappraisalreport

afterevaluationyetto bedonetillnow.

Interpretation: Most of the employees saying that they dont receive their appraisal report

afteritisevaluated.

0

5

10

15

20

No. of Employees percentage

Yes

No


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8) Who appraisesyourperformance?

a) HOD b) HR



HOD 28 93%

HR 2 7%



Analysis: Theabovetablerevealsthat28% oftheemployeessaythattheyappraisedby HOD

& HR2% ofemployeessaythattheyappraisedby HR.

Interpretation: Most of the employees saying that they are appraisedby their Head of the

departmentand Hospital Administration.

0

5

10

15

20

No. of

Employees

percentage

HOD

HR


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9) Do youthinkpresent Performance Appraisalsystemneeda Change?

a) Yes b) No



Yes 06 20%

No 24 80%


Source:Fromthequestionnaire givento theemployees.

Analysis: Theabove table reveals that20% of the employees say that they think that present

appraisalsystemneedachange, 80% ofemployeessaythatno need ofchangeyetto bedonetill

now.

Interpretation:Most oftheemployeesthinking that presentappraisalsystemnotto bechange.

0

5

10

15

20

25


Yes

No


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10) Performance Appraisalisused for?

a) Identitytraining needs b) promotions/demotions

c) Recognizeemployeeefforts d) Alltheabove



Identitytraining needs 2 6.7%

Promotions/ Demotions 2 6.7%

Recognizeemployeeeffort 12 40%

Alltheabove 14 46.6%



Analysis:Theabove table reveals that02% of theemployees say that performanceappraisal

used forgiving the promotions/demotionsandidentitytraining needs, 12% ofemployeessaying

thatappraisal isused for the recognizeemployeeeffortsand remaining 14% ofemployeesare

saying thatitisused foralltheabove.

Interpretation: Most of the employees are saying that performance appraisal is used for

identitytraining needs, promotions/demotions, recognizeemployeesefforts.

0

2

4

6

8

10

12

14

NO OF

EMPLOYEES

Identity training

needs

Promotions /

Demotions

Recognize

employee efforts

All the above


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11) Isthere isaneed of interactivesessionsduring Performance Appraisalbetween HOD and

employees?

a) Yes b) No

Tabular representation of collected data


Yes 28 93.3%

No 02 0.7%



Analysis:Theabovetablerevealsthat93.3% oftheemployeesareagreethattheirisaneed of

interactive session during performance appraisal between the HOD and employee, 0.7% of

employeesaresaying thatthereisno need ofinteractive.

Interpretation: Most of the employees are saying that it is compulsory need the interactive

sessionduring performanceappraisalbetweenthe HOD andemployees.

0

5

10

15

20

25

30


Yes

No


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12) Areyousurethatyou getsomesort ofbenefitsby offering Appraisals?

a) Yes b) No



Yes 26 86.7%

No 04 13.3%



Analysis: Theabove tablereveals that86.7% oftheemployeesaresaying that they getsome

benefits after appraisal, 13.3% of employees are saying that they dont get benefits after

appraisals.

Interpretation: Most of theemployeesare agree that they are getting some sort ofbenefits

afterappraised.

0

5

10

15

20

25

30


Yes

No


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13) Whatmethodsaretakento improvetheemployees performance?

a) Training b) Counseling

c) Motivation d) Alltheabove

Tabular representation of collected data


Training 03 10%

Counseling 04 13.3%

Motivation 06 20%

Alltheabove 17 56.7%



Analysis: The above table reveals that 10% of the employees are saying that training is

improvestheemployee performance, 13.3% ofemployeesaresaying thatcounseling isused for

improvestheemployees performance, 20% ofemployeesaresaying thatmotivation isused for

theimprovesemployees performanceandremaining 56.7% ofemployeesaresaying thatallthe

abovemethodsareused fortheimprovesthe performance oftheemployees.

Interpretation: Most of theemployeesareagree that for improving the performance of the

employeesallthemethodsshouldbeusedi.e., training, counseling andmotivation.

0

5

10

15

20

No. of

Employees

percentage

Training

Counseling

Motivation

All the above


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14) Howdo you feel overall performanceappraisalsystem followedbyyourOrganization?

a) Excellent b) very good

c) Good d) Average



Excellent 03 10%

Very good 04 13.3%

Good 16 53.3%

Average 07 23.3%



Analysis: Theabovetablerevealsthat 10% oftheemployeessaysthat overallappraisalsystem

isexcellent, 13.3% ofemployeessaying that it isvery good, 53.3% ofemployees feelthat it is

good, 23.3% ofemployees feelthatiswasaverage.1

Interpretation: Most oftheemployeesare feelthat overall performanceappraisalsystemis

good.

0

5

10

15

20

No. of

Employees

percentage

ExcellentVery good

Good

Average


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FINDINGS

y Most oftheemployeesknowabout performanceappraisaland few ofthemnotaware of

the performanceappraisal.

y All the employees agree that AL SHIFA HOSPITALS implementing the performance

appraisals.

y Most oftheemployeessaythattheyknowthe procedure of performanceappraisalsand

few ofthemdontknow.

y Inthe AL SHIFA HOSPITALSimplementing the Modernmethod.

y Most of theemployees satisfiedwith the presentappraisal system followedby the AL

SHIFA HOSPITALSand few ofthemnotsatisfied.

y Inthis Organization performanceappraisalevaluated onceinyearly.

y Most of theemployeesagree thatSelfappraisal systemwillbemorecomfortableand

advisable.

y Performance feedback isnotbeing implemented in the organization, presently only few

employeesarereceiving performance feedback.

y Thehead ofthedepartmentwillappraisethe performance oftheemployees.

y Most oftheemployeesthinking that presentappraisalsystemneedto bechange.

y

Most oftheemployeesthinking thatSelf Appraisalsystemisrequired.

y Most oftheemployeesaresaying that performanceappraisalisused foridentitytraining

needs, promotions/demotions, recognizeemployeeefforts.

y Most of the employees are feel that 360 degrees appraisal system would be more

effectivethanthe presentsystem.

y Most of the employees are agree that they are getting some sort of benefits after

appraised.

y Most of theemployeesare saying that there isaneed ofanexpert person in the H.R.

department.

y Most oftheemployeesare feelthat overall performanceappraisalsystemis good.

y Performance appraisal not been done for some categories of employees of the

organization.


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SUGGESTIONS

y The awareness can be created among all the employees by conducting classes and

interactivesessionsaboutthe Performance Appraisal.

y The organizationshouldcoverallcategories ofemployees forappraisalsystem.

y Hencedifferent forms shouldbedesigned fordifferentcategories ofemployees of the

Organization.

y Bythistheemployeeswillknowabouttheirlacking andtryto improveandtheirsuperior

shouldcounseltheemployeeaboutthe Performance.

y Organizationshould give feedbackto alllevels ofemployees.

y Organizationshould focus on performance feedbackand itshouldbecommunicated for

alltheemployees of AL SHIFA Hospitals.

y Organizationshould givescope forinteractionbetweensuperiorandsubordinate.

y Organizationshouldappointanexpert inappraisal to makeappraisalauthenticand fool

proof.

y Performanceappraisal shouldbedone for the lower levelemployeesalso, so that they

canworksincerely.

y Periodicalappraisalhelpsthecompanyto compareemployees performanceandto take

aptdecisions forfurtherimprovement.

y Annual performanceappraisals evaluate the role of theemployee in the organizational

development and also monitoring the standard, expectations, objectives, efficiency in

handling taskandresponsibilitiesina period oftime.

y Each employee should evaluate by his supervisor and to discuss each other to set

objectives forupcoming evaluation.

y This discussion should cover the review of overall progress, problems encountered,

performanceimprovement possibilities, long termcareergoals, specificaction planabout

job description and responsibilities, employee development interest and needs, to

concentrate specific areas of development, to review performance objectives and

performancestandard, ongoing feedbackand periodicdiscussions.


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CONCLUSION

y Performance appraisal refers to the assessment of an employees actual performance,

behaviorontheir jobs, andhis orherpotential forfuture performance.

y Appraisals has several objectivesbut themain purposes are training needs, to assess

training needs, to effect promotions, andto give payincreases.

y Employees have to understand about his or her roles and become clear about his

functions, he orsheunderstandshis orherownstrengthsandweaknesses.

y Performanceappraisalshouldcoveratalllevels oftheemployeesbutitcovers only few

levels. Not only few employees are aware of performance appraisal all the employees

shouldbeaware. Appraisalneedssupport ofalllevels ofemployees.

y The management has to make performance appraisal understand and clear about

questionnaireto everyemployee.

y Organization has to maintain propercommunicationbetween superiorand subordinate.

Which leads to organizational effectiveness and employeewellbeing. Organizational

relationsalso beenmaintained.

y The quality of work in the organization since the quality of work depends on the

performance oftheemployee.

y Theterm Performance Appraisalisconcernedwiththe process ofvaluing a persons

worthto an organizationwithaviewto increasing it.


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BIBILIOGRAPHY

HUMAN RESOURCE MANAGEMENT

ASWATHAPPA.K

HUMAN RESOURCE MANAGEMENT AND INDUSTRIAL RELATIONS

SUBBA RAO.P

APPRAISING AND DEVELOPING MANAGERIAL PERFORMANCE

RAO, T.V

PERFORMANCE MANAGEMENT

PREM CHADHA

Websites:

www.alshifahospital.com

www.google.com

{www.changingminds.org

www.performance-appraisal.com}


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ANNEXURE

Questionnaire

Dear Sir/ Madam,

I amMBA student ofAdhiyamaan college of engineering, Hosur And presentlydoing aMajor

project in A STUDY ON THE CONCEPT OF PERFORMANCE APPRAISAL AT AL

SHIFA HOSPITAL. I requestyouto kindly fillthequestionnairebelowand I assureyouthat

thedata generatedshallbekeptconfidential.

1) Do youunderstandtheterm Performance Appraisal?

a) Yes b) No

2) Is AL SHIFA Hospitalimpleme

nting Performa

nce Appraisals?

a) Yes b) No

3) Areyouawarewiththe procedure of Performance Appraisal?

a) Yes b) No

4) Areyousatisfiedwith present Appraisalsystembeing followedin AL SHIFA Hospital?

a) Highlysatisfied b) Satisfied

c) Averagesatisfy d) Neutral

5) Atwhat frequency Performance Appraisalsystemisevaluated?

a) Promotion b) AfterProbation

c) Annually d) Alltheabove

6) Whichyou feelismore

comfortablea

ndadvisable?

a) Selfappraisalsystem b) Confidentialreportsystem

7) Do youreceiveyourPerformance Appraisalreportafteritisevaluated?

a) Yes b) No


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8) Who appraisesyourperformance?

a) HOD b) HR

9) Do youthinkpresent Performance Appraisalsystemneeda Change?

a) Yes b) No

10) Performance Appraisalisused for

a) Identitytraining needs b) promotions/demotions

c) Recognizeemployeeefforts d) Alltheabove

11) Isthereisaneed ofinteractivesessionsduring Performance Appraisalbetween

HODsandemployees?

a) Yes b) No

12) Areyousurethatyou getsomesort ofbenefitsby offering Appraisals?

a) Yes b) No

13) Whatmethodsaretakento improvetheemployees Performance?

a) Training b) Counseling

c) Motivation d) Alltheabove

14) Howdo you feel overall Performance Appraisalsystem followedbyyourorganization?

a) Excellent b) very good

c) Good d) average

) i i f i l i

my project cre

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