Project On Performance appraisal in Infowiz Company Submitted towards the partial fulfillment of the requirement for the degree of MASTERS OF BUSINESS ADMINISTRATION MBA Batch 2013-2015 Submitted to Submitted by Jagandeep Singh SCHOOL OF MANAGEMENT STUDIES PUNJABI TECHENICAL UNIVERSITYJALANDHARACKNOWLEDGEMENT Endeavours have borne fruit and as I prepare to get ahead I stop for a moment in the track to acknowledge my sincere gratitude for the assistance, efforts and patronage I have received in course of completing the project report.I would gracefully acknowledge the inspiration, encouragement and valuable suggestions that I had got from my project guide MS. SUNANDHA SHARMA for completing our research.My overriding debt is to my parents who provided me with the time and financial assistance and inspiration needed to prepare this project report in congenial manner. Last but not the least I would like to thank the almighty that gave me the courage and endurance to complete the endeavour.

JAGANDEEP SINGH

DECLARATIONI am Jagandeep Singh hereby declare that this project titled Performance appraisal is based on study conducted by me under the guidance of Miss Shrdha shree this project has not been submitted earlier for the award of any other degree/diploma to any other institute or university. Jagandeep Singh

PrefaceManaging human resource in todays environment is becoming more and more complex as well as important. Recognition of people as a valuable resource in the organisation has led to increased trend in employee maintenance, job security, etc.My research project deals with Performance appraisal as carried out at Infowiz. In this report, I have studied and evaluated the performance appraisal process as it is carried out in the company.The first section of my report deals with the introduction of my topic and the detailed company profile. It includes the companys activities and operations, organisational structure, etc. This section attempts to give detailed information about the company and the nature of its functioning.The second section deals with the performance appraisal. In this section, I have given brief conceptual explanation to performance appraisal. It contains the definition, process and significance of performance appraisal.In the third section of my report, I have conducted a research study to evaluate the process of performance appraisal at Infowiz. This section also contains my findings, conclusions, suggestions and feedback.The fourth and final section of this report consists of extra information that I related to the main contents of the report. These annexure include some graphs and diagrams relating to the company, graphs relating to the research study and important documents on which the project is based.

ContentsS.No.TITLE NAMEPAGE No.

Introduction

Company profile

Scope of the study

Review of literature

Objective of study

Research methodology

Findings

Suggestions

Conclusion

Annexure

Bibliography

IntroductionIntroduction to HRHuman resource management has been traditionally viewed as an inherent part of management which is concerned with the human resource of an organisation.Human Resource Management is an art of managing people at work in such a manner that they give their best to the organization. In simple words, human resource management refers to the quantitative aspects of employees working in an organization.Human Resource Management is also a management function concerned with hiring, motivating and maintaining people in an organization. It focuses on people in organization.Organizations are not mere bricks, mortar, machineries or inventories. They are people who manages organizations.HRM involves the application of management functions and principles. The functions and principles are applied to acquisitioning, developing, maintain, and remunerating employees in organizations.Decisions relating to employees must be integrated. Decision on different aspect of employees must be consistent with other human resource decisions. Decision made must influence the effectiveness of organization. Effectiveness of an organization must result in betterment of services to customers in the form of high-quality product supplied at reasonable costs.HRM function is not confined to business establishment only. They are applicable to non-business organizations, too such as education, health care, recreation etc. The scope of HRM is indeed vast. All major activities in the working life of his or her entry into an organization until he or she leaves-come under the previews of HRM specifically, the activities included are HR planning, job analysis, recruitment and selection, orientation and placement, training and development, performance appraisal and job evaluation, employee and executive remuneration, motivation and communication, welfare, safety and health, industrial relations and the like. HRM is a broad concept. Personnel management and human resource development is a part of HRM. Human resource management plays an important role in the development process of modern economy. In fact it is said that all the development comes from the human mind. Human Resource Management is a process of producing development, maintaining and controlling human resources for effective achievement of organization goals.According to Edwin B. Flippo,Human Resource Management is the planning, organising, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual and societal objectives are accomplished.Functions of human resource management:Following are the various functions of Human Resource Management that are essential for the effective functioning of the organisation:RecruitmentSelectionInductionPerformance appraisalTraining and Development RecruitmentThe process of recruitment begins after manpower requirements are determined in terms of quality through job analysis and quantity through forecasting and planning.SelectionThe selection is the process of ascertaining whether or not candidates possess the requisite qualifications, training and experience required.InductionInduction is the technique by which a new employee is rehabilitated into the changed Surroundings and introduced to the practices, policies and purposes of the organization.

Introduction to Performance AppraisalOnce the employee has been selected, trained and motivated, he is then appraised for his performance. Performance Appraisal is the step where the Management finds out how effective it has been at hiring and placing employees. If any problems are identified, steps are taken to communicate with the employee and remedy them. Performance appraisal, also referred to as a performance review, performance evaluation or employee appraisal is a method by which the job performance of an employee is documented and evaluated. Performance appraisals are employed to determine who needs what training, and who will be promoted, demoted, retained or firedPerformance Appraisal is a process of evaluating an employees performance in terms of its requirements. Performance Appraisal can also be defined as the process of evaluating the performance and qualifications of the employees in terms of the requirements of the job for which he is employed, for purposes of administration including placement, selection for promotions, providing financial rewards and other actions which require differential treatment among the members of a group as distinguished from actions affecting all members equally.According to Flippo, Performance appraisal is the systematic, periodic and impartial rating of an employees excellence in matters pertaining to his present job and his potential for better job.Characteristics of performance appraisalPerformance appraisal is a process.It is the systematic examination of the strength and weakness of an employee in terms of his job.It is scientific and objective study. Formal procedures are used in the study.It is an ongoing and continuous process wherein the evaluations are arranged periodically according to a definite plan.The main purpose of performance appraisal is to secure information necessary for making objective and correct decision for an employee.Importance and Purpose Performance Appraisal has been considered as the most significant an indispensable tool for an organization, for an organization, for the information it provides is highly useful in making decisions regarding various personnel aspects such as promotion and merit increases. Performance measures also link information gathering and decision making processes which provide a basis for judging the effectiveness of personnel sub-divisions such as recruiting, selection, training and compensation. Accurate information plays a vital role in the organization as a whole. They help in finding out the weaknesses in the primary areas. Formal Performance Appraisal plans are designed to meet three needs, one of the organization and the other two of the individual namely: They provide systematic judgments to back up salary increases, transfers, demotions or terminations. They are the means of telling a subordinate how he is doing and suggesting needed changes in his behavior, attitudes, skills or job knowledge. They let him know where he stands with the Boss. Superior uses them as a base for coaching and counseling the individual. On the basis of merit rating or appraisal procedures, the main objectives of Employee Appraisal are: To enable an organization to maintain an inventory of the number and quality of all managers and to identify and meet their training needs and aspirations.To determine increment rewards and to provide reliable index for promotions and transfers to positions of greater responsibility.To suggest ways of improving the employee s performance when he is not found to be up to the mark during the review period.To identify training and development needs and to evaluate effectiveness of training and development programmes. To plan career development, human resource planning based potentials.

companys ProfileINFOWIZINFOWIZ is leading strategic IT Company offering integrated IT solution. INFOWIZ is having rich experience managing global clients across various business verticals and align IT strategies to achieve business goals. The various accreditations that we achieved for every service, we offer reflect our commitment towards the quality assurance.INFOWIZ is a 7 years young organization with an ISO Certification & a member of Confederation of Indian Industry (CII membership number N4654P). We also provide the off shore companies of US, UK, France, Ireland, Canada and Australia with quality and timely Web and SEO services.INFOWIZ is an organization which is established in the field of Web Development (PHP & .NET), JAVA (Core as well as Advance), I-phone & Android Applications, Embedded systems (AVR, PIC & ARM), ROBOTICS and Networking (MCSE, CCNA & RHSE), Mechanical Engineering (CRDI, CATIA, VVT, VCR, ABS, CRUISE CONTROL, PRO-E, SOLID WORKS).Civil Engineering (AUTO CAD, STAAD-PRO, REVIT), Finance, HR-Marketing.Our skilled team of professionals make sure that the product is developed as per the customers needs and keeping the customer informed about the development of their project from time to time. We do not only emphasize on formulating an attractive solution to our clients but also believe in providing a workable solution. INFOWIZ offers research based Search Engine Marketing products that help achieve greater insights to customers online business. Our Research & Development arm offers SEO tools for SEM professionals.INFOWIZ also provides Technical Support & Consultancy to Software Companies like JIA Group, New Zealand, Sagi tech solutions Panchkula, Jarc info tech Mohali, Info net Solution Delhi, web it solutions, Speed info rays etc.

Our teamA Ship is as good as the crew who sail her.Our Technical team of professionals handing, designing & delivering of projects has a strong presence in the North India & the US. Our engineers are already working on the latest technologies like I-Phone & Android Applications, Robotics, VLSI-VHDL, Embedded System, Networking and Cloud computing.1) Dr. Seema (Managing Director) She is the backbone of INFOWIZ and a woman with more than 9 year rich practical experience who believes in taking up new ventures and projects.2) Mr. Rajeev Nayya (General Manager) A man who strongly feel that Nothing is Impossible. A very committed team leader who has been professionally attached with Multinational companies for more than 18 years and has lead the marketing teams in all states of North India. 3) Mr. Deepak Kashyap (Technical Manager & Branch Manager)A man who strongly feels Team work leads to success. He strives to achieve his goals with full dedication and devotion towards the organization. He has more than 7 years experience in IT sector.4) Ms. Urvashi (Dean Academics)A woman who believes Challenges are what make life interesting and overcoming them is what makes life meaningful. She has more than 10 years experience in business development.5) Er. Vishal Goyal (Head & Technical Advisor at US Branch) More than 10 years industrial experience in US and smooth handling of the entire US business.Courses Offered For CSE/IT/MCA Professionals:-Web Development in PHP with LIVE ProjectsWeb Development in .NET with LIVE ProjectsJAVA (Core as well as Advance) with LIVE ProjectsAndroid Applications with LIVE Projects Web Designing (Photoshop, Coral Draw)C#, Console Applications, VB.NET, ASP.NETMySQL, SQL, ORACLENetworking (MCSE, CCNA, RHSE)SEO (Search Engine Optimization) For ECE/EE/EIE Professionals:-Robotics with Live ProjectVLSI-VHDL with Live ProjectEmbedded System Design with Live ProjectMicrocontroller with Live ProjectMicroprocessor with Live ProjectPCB DesigningAVR & PIC FamilyPCB and layout designingAUTOMATION with Live ProjectProject development with ARM processorsFor ME/ECE Professionals:-CRDi TechnologyABS, CRUISE CONTROL.MPFi & EFi TechnologyCATIAPRO-EAUTOCAD/CAMSOLIDWORKSOur core strength is our timely, technically and cost effective project delivery. We also provide customers with designs as per their demands. INFOWIZ also provide Industrial Training of 6 Months & 6 Weeks in ME / IT & Electronics to B.Tech, MCA students. We help students in building their career.Scope of studyThe research was carried out to define how the IT industry should evaluate the performance of its employees and which factors are affecting its employees performance. A proper procedure is to be followed to evaluate the performance and this evaluation is further considered to take promotion and demotion decisions. For conducting the study help of certain tools were taken such as interviews, filling up of questionnaire, group discussion and also by observing the employees of Infowiz. The information so collected is used by the company for taking organisational decisions.

Literature reviewThe following literature review was compiled from magazine articles, journals, published books, and written standards found at the Learning Resource Center of the National Emergency Training Center, Emmetsburg, MD and the library of the South Trail Fire Department. The purpose of this literature review is to establish a foundation based in theory for this study. The findings of the literature review examined different aspects of performance appraisals. Some of the goals and objectives were looked at as well as the advantages and disadvantages of performance appraisal systems.

Goals and objectives of performance appraisal

Performance appraisals have played a part in the fire service. Many departments nationwide have used performance appraisals, although the type of appraisal used has varied. Most of the literature suggests that performance appraisals are important in some form to fire service organizations. Performance appraisals are management tools that may be used to direct and control employee behavior, distribute organizational rewards, improve employee work performance, or develop employee capabilities (Tompkins, 1995, p.250). It is clear from 12 Reviewing the literature that when a proper system is in place, a performance appraisal can assist an organization in controlling employees. In his article Performance Appraisal-Lets Quit Appraising and Begin Reviewing, Baches (1988) states, the sole intent of every performance appraisal system should be to improve performance, to provide feedback on quality of performance and then review progress on the desired improvement of performance (p.204). Other authors have stated that in general, conducting formal evaluations is one way of laying down a line of communications between employees and supervisors. If conducted properly the organization benefits from this performance appraisal exchange. The literature suggests that performance appraisals should have clear goals set forth for its use. In his book, Essentials of Organizational Behavior, Stephen P.Robbins (1994) states, Performance appraisals serve a number of purposes in organizations. First, management uses appraisals for general personnel decisions such as promotions, rewards, transfers, and terminations. Second, appraisals identify training and development needs, not only for individual employees, but also the organization as a whole. Third, performance appraisals can be used to validate selection and development programs. Fourth, appraisals provide feedback to the employees on how the organization views their performance. Most organizations must use the best standards that apply to them. The organizational needs must be clearly stated so that the appraisal program can be designed to meet the needs. The two primary objectives of a well functioning performance appraisal system should be: To formally measure the performance of the individual employee and to provide information on how well the system is designed and working. The formal measures of performance are used as feedback to the employee and used by others in management for making personnel decisions such as promotions and work assignments. The information provided by the performance reviews of many subordinates should be used 13collectively to modify the inputs of the performance appraisal system in an attempt to improve its efficiency (Baker, 1988, p.26). Goals and objectives are methods by which job expectations can be measured. Managers must be able to clearly explain the differences between goals and standards to their employees so that both parties know how they will be used during the appraisal process (Maddux, 1987, p.169). A goal is a statement of expected results in the performance appraisal process. Goals can describe: (1) conditions that will exist at the end of a period, (2) the time frame required for the desired results and (3) the resources required achieving the results. Goals should be established with employee participation and designed to reflect their abilities and training(Maddux, 1987, p.170). This setting of goals and objectives is important because employees may not understand that their current behavior is not producing desired results. In establishing goals with employees it is important to remember that the goals must be obtainable by the employee. The performance appraisal can be the most powerful tool a manager has to enhance a subordinates productivity. Conversely, the performance appraisal system can stir strong feeling and conflict in the work place (Baker, 1988, p.59).

Advantages and Disadvantages of Performance Appraisals

In reviewing the literature there was considerable articles that encouraged the use of performance appraisals. Most authors felt that the leadership of the fire service needs to embrace the concept of employee evaluations. The difference of opinion was to the exact method of how to accomplish the appraisal. In his article Succession Planning, Coleman (1988) states, The performance evaluation system utilized by a firefighting agency should include an assessment of a candidates potential for promotion (p.24). This feeling was common among the articles reviewed. Another 14 Sentiment expressed was the commitment to the department and its employees. Good leaders have strong interest in personal and professional development of their people. They encourage their personnel to push beyond their limitations and give their personal best (Reynolds, 1999, p.10). You must consciously study your coworkers and get a feel for where they are coming from. Are they shy and retiring or are they brash and bold? Each will require a slightly different supervisory style(Carter, 1988, p.19). This theme of obligation to the organization was one that was consistent in the literature review. Most authors felt that the benefits of even a week performance appraisal system would outweigh the disadvantages. The most effective managerial tool that can be employed by the fire officer to increase discipline is not punitive action, but counseling and training (Coleman, 1989, p.20). In his article the bottom-up performance appraisal, Hymes (1996) states Four skill areas are required for effective organizational performance: motivation, time management, decision-making and communications. The first three cannot be accomplished without good communication skills (p.109). This theme of coaching was common and strongly recommended by most authors. The setting up of an appraisal system that allows for employee feedback and interaction was desirable. A healthy organization would assist gifted personnel to find their way to a function that enables them to contribute to an organization (Thorp, 1999, p.7). Some of the problems with performance appraisals that were pointed out involved lack of standards and clear direction. Without knowledge of the standards and a proper assessment program, employees are likely to perceive unfairness, subjectivity and bias in the evaluation (Carter, 1988, p.19). One way to avoid rater bias is to use a rating system based on a specific observable behavior and scored using symbols rather than numbers (Booth, 1983, p.38). In addition, to these areas of concern in his book Appraising managers as managers, Koontz (1971) Writes, It has been widely held by scholars of management and practicing managers that appraisal should be separated from considerations of compensation(p.174). The feeling here is that bias would affect the pay of employees and if a particular supervisor holds a grudge against an individual, the employee could be harmed. In addition, some supervisors may gloss over the process because they feel that it would be too difficult to decide to take away or deny an employee additional pay. One thing for sure is that most authors felt that clear guidelines should be followed when institutionalizing a performance appraisal system. The previous appraisal system used ambiguous words such as good, poor, and inadequate, without performance definitions to clarify the distinctions between the levels. Each of us would define these terms differently (Paulsgrove, 1990, p.58). The previous quote summarized the feelings of authors in many of the articles. Many fire departments have abandoned the appraisal system because they found that the appraisals were too subjective. In summary, the majority of articles felt that most of these problems could be overcome by using a consensus process between management and the unions prior to implementing a performance appraisal system. We strongly encourage the use of goal-oriented performance appraisal systems. These systems have the manager and subordinate agree on objectives at the beginning of the appraisal period, and then evaluate progress towards meeting these objectives throughout the period (Joseph & Susan Berk, 1991, p.75). The fact that most programs fail is usually due to two problems: 1. The lack of training in rating employees and 2. Inappropriate criteria and methods for evaluating have been implemented. Supervisors should be trained in performance management, then prepare their employees for the process .The research provided a clear understanding of the problems associated with starting an appraisal system that would be beneficial to both the employees and the organization. The literature reviewed pointed out the good and the bad aspects of performance appraisals. Most authors felt that with leadership and perseverance these issues could be worked out. The important issue is that for an organization to flourish and help its employees grow. Sound performance appraisal systems are another tool for the toolbox. Goals and objectives were keys in developing a good performance appraisal program. Employees need well-defined standards that can be met and understood. The literature showed that many programs fail when there is no clear set of standards in place. In addition, a strong training program should be used to help support the performance appraisal process and its understanding.Objectives of studyPrimary objectives An in depth study about the performance appraisal of the employees of Infowiz.Secondary objectivesTo identify various techniques to be used for performance appraisal.To find the accurate procedure for undergoing performance appraisal.To study the various factors that can affect the performance of the employees of Infowiz.To take feedback of the employees.To enhance the welfare of employees.To conduct a study on social behavior.

ProcessThe process of performance appraisal:1.Establishing performance standards2.Communicating the Standards3. Measuring Performance4. Comparing the actual with the standards5. Discussing the appraisal6. Taking Corrective Action

Limitations1.Errors in Rating2.Lack of reliability3.Negative approach4.Multiple objectives5.Lack of knowledge

Performance Appraisal MethodsTraditional and Modern MethodsEach method of performance appraisal has its strengths and weaknesses may be suitable for one organisation and non-suitable for another one. As such, there is no single appraisal method accepted and used by all organizations to measure their employees performance.All the methods of appraisal devised so far have been classified differently by different authors. While DeCenzo and Robbins^ have classified appraisal methods into three categories: absolute methods, relative methods and objective methods; Aswathappa has classified these into two categories past-oriented and future-oriented.Michael R Carrel et. Al. have classified all appraisal methods into as many as six categories: rating scales, comparative methods, critical incidents, 6ssay, MBO and combination methods. Rock and Levis have classified the methods into two broad categories: narrow interpretation and broad interpretation. Beatty and Schneider have categorised various methods of appraisal into four groups: comparative methods, absolute methods, goal setting, and direct indices.A more widely used classification of appraisal methods into two categories, viz., traditional methods and modem methods, is given by Strauss and Sayles. While traditional methods lay emphasis on the rating of the individuals personality traits, such as initiative, dependability, drive creativity, integrity, intelligence, leadership potential, etc.; the modem methods, on the other hand, place more emphasis on the evaluation of work results, i.e., job achievements than the personal traits! Modem methods tend to be more objective and worthwhile. The various methods included in each of the two categories are listed in Table 28.4.

In the discussion that follows, each method under both categories will be described briefly.Traditional MethodsRanking Method: It is the oldest and simplest formal systematic method of performance appraisal in which employee is compared with all others for the purpose of placing order of worth. The employees are ranked from the highest to the lowest or from the best to the worst.In doing this the employee who is the highest on the characteristic being measured and also the one who is L lowest, are indicated. Then, the next highest and the next lowest between next highest and lowest until all the employees to be rated have been ranked. Thus, if there are ten employees to be appraised, there will be ten ranks from 1 to 10.

However, the greatest limitations of this appraisal method are that(i) It does not tell that how much better or worse one is than another,(ii) The task of ranking individuals is difficult when a large number of employees are rated, and(iii) It is very difficult to compare one individual with others having varying behavioural traits. To remedy these defects, the paired comparison method of performance appraisal has been evolved.Paired Comparison: In this method, each employee is compared with other employees on one- on one basis, usually based on one trait only. The rater is provided with a bunch of slips each coining pair of names, the rater puts a tick mark against the employee whom he insiders the better of the two. The number of times this employee is compared as better with others determines his or her final ranking.The number of possible pairs for a given number of employees is ascertained by the following formula:N (N-1)/2Where N = the total number of employees to be evaluated. Let this be exemplified with an imaginary example.If the following five teachers have to be evaluated by the Vice Chanceller of a University:(K), Mohapatra (M Raul (R), Venkat (V), and Barman (B), the above formula gives 5 (5 -1) / 2 or 10 pairs.

These are:

Thus, the pairs so ascertained give the maximum possible permutations and combinations. The number of times a worker is considered better makes his/her score. Such scores are determined for each worker and he/she is ranked according to his/her score. One obvious disadvantage of this method is that the method can become unwieldy when large numbers of employees are being compared.Grading MethodIn this method, certain categories of worth are established in advance and carefully defined. There can be three categories established for employees: outstanding, satisfactory and unsatisfactory. There can be more than three grades. Employee performance is compared with grade definitions. The employee is, then, allocated to the grade that best describes his or her performance.Such type of grading is done is Semester pattern of examinations and in the selection of a candidate in the public service sector. One of the major drawbacks of this method is that the rater may rate most of the employees on the higher side of their performance.Forced Distribution MethodThis method was evolved by Tiffin to eliminate the central tendency of rating most of the employees at a higher end of the scale. The method assumes that employees performance level confirms to a normal statistical distribution i.e., 10,20,40,20 and 10 per cent. This is useful for rating a large number of employees job performance and promo ability. It tends to eliminate or reduce bias.It is also highly simple to understand and easy to apply in appraising the performance of employees in organisations. It suffer from the drawback that improve similarly, no single grade would rise in a ratings.Forced-Choice MethodThe forced-choice method is developed by J. P. Guilford. It contains a series of groups of statements, and rater rates how effectively a statement describes each individual being evaluated. Common method of forced-choice method contains two statements, both positive and negative.Examples of positive statements are: 1. Gives good and clear instructions to the subordinates.2. Can be depended upon to complete any job assigned.A pair of negative statements may be as follows: 1. Makes promises beyond his limit to keep these.2. Inclines to favour some employees.Each statement carries a score or weight, which is not made known to the rater. The human resource section does rating for all sets of statements both positive and negative. The final rating is done on the basis of all sets of statements. Thus, employee rating in this manner makes the method more objective. The only problem associated with this method is that the actual constructing of several evaluative statements also called forced-choice scales, takes a lot of time and effort.Check-List MethodThe basic purpose of utilizing check-list method is to ease the evaluation burden upon the rater. In this method, a series of statements, i.e., questions with their answers in yes or no are prepared by the HR department (see Figure 28-2). The check-list is, then, presented to the rater to tick appropriate answers relevant to the appraise. Each question carries a weight-age in relationship to their importance.

When the check-list is completed, it is sent to the HR department to prepare the final scores for all appraises based on all questions. While preparing questions an attempt is made to determine the degree of consistency of the rater by asking the same question twice but in a different manner (see, numbers 3 and 6 in Figure 28-2).However, one of the disadvantages of the check-list method is that it is difficult to assemble, analyse and weigh a number of statements about employee characteristics and contributions From a cost stand point also, this method may be inefficient particularly if there are a number of job categories in the organisation, because a check-list of questions must be prepared for each category of job. It will involve a lot of money, time and efforts.Critical Incidents MethodIn this method, the rater focuses his or her attention on those key or critical behaviours that make the difference between performing a job in a noteworthy manner (effectively or ineffectively). There are three steps involved in appraising employees using this method.First, a list of noteworthy (good or bad) on-the-job behaviour of specific incidents is prepared. Second, a group of experts then assigns weightage or score to these incidents, depending upon their degree of desirability to perform a job. Third, finally a check-list indicating incidents that describe workers as good or bad is constructed. Then, the check-list is given to the rater for evaluating the workers.The basic idea behind this rating is to apprise the workers who can perform their jobs effectively in critical situations. This is so because most people work alike in normal situation. The strength of critical incident method is that it focuses on behaviours and, thus, judges performance rather than personalities.Its drawbacks are to regularly write down the critical incidents which become time-consuming and burdensome for evaluators, i.e., managers. Generally, negative incidents are positive ones. It is raters inference that determines which incidents are critical to job performance. Hence, the method is subject to all the limitations relating to subjective judgments.Graphic Rating Scale MethodThe graphic rating scale is one of the most popular and simplest techniques for appraising performance. It is also known as linear rating scale. In this method, the printed appraisal form is used to appraise each employee.The form lists traits (such as quality and reliability) and a range of job performance characteristics (from unsatisfactory to outstanding) for each trait. The rating is done on the basis of points on the continuum. The common practice is to follow five points scale.The rater rates each appraise by checking the score that best describes his or her performance for each trait all assigned values for the traits are then totaled. Figure 28-3 shows a typical graphic rating scale.

This method is good for measuring various job behaviours of an employee. However, it is also subjected to raters bias while rating employees behaviour at job. Occurrence of ambiguity in design- mg the graphic scale results in bias in appraising employees performance.Essay MethodEssay method is the simplest one among various appraisal methods available. In this method, the rater writes a narrative description on an employees strengths, weaknesses, past performance, potential and suggestions for improvement. Its positive point is that it is simple in use. It does not require complex formats and extensive/specific training to complete it.However, essay method, like other methods, is not free from drawbacks. In the absence of any prescribed structure, the essays are likely to vary widely in terms of length and content. And, of course, the quality of appraisal depends more upon raters writing skill than the appraisers actual level of performance.Moreover, because the essays are descriptive, the method provides only qualitative information about the employee. In the absence of quantitative data, the evaluation suffers from subjectivity problem. Nonetheless, the essay method is a good start and is beneficial also if used in conjunction with other appraisal methods.Field Review MethodWhen there is a reason to suspect raters biasedness or his or her rating appears to be quite higher than others, these are neutralised with the help of a review process. The review process is usually conducted by the personnel officer in the HR department.The review process involves the following activities(a) Identify areas of inter-rater disagreement.(b) Help the group arrive at a consensus.(c) Ensure that each rater conceives of the standard similarity.However, the process is a time-consuming one. The supervisors generally resent what they consider the staff interference. Hence, the method is not widely used.Confidential ReportIt is the traditional way of appraising employees mainly in the Government Departments. Evaluation is made by the immediate boss or supervisor for giving effect to promotion and transfer. Usually a structured format is devised to collect information on employees strength weakness, intelligence, attitude, character, attendance, discipline, etc. report.Modern MethodsManagement by Objectives (MBO)Most of the traditional methods of performance appraisal are subject to the antagonistic judgments of the raters. It was to overcome this problem; Peter F. Drucker propounded a new concept, namely, management by objectives (MBO) way back in 1954 in his book.The Practice of management. The concept of MBO as was conceived by Drucker, can be described as a process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individuals major areas of responsibility in terms of results expected of him and use these measures as guides for operating the unit and assessing the contribution of each its members.In other words, stripped to its essentials, MBO requires the manager to goals with each employee and then periodically discuss his or her progress toward these goals.In fact, MBO is not only a method of performance evaluation. It is viewed by the Practicing managers and pedagogues as a philosophy of managerial practice because .t .s a method by wh.ch managers and subordinates plan, organise, communicate, control and debate.An MBO programme consists of four main steps: goal setting, performance standard, comparison, and periodic review. In goal-setting, goals are set which each individual, s to attain. The superior and subordinate jointly establish these goals. The goals refer to the desired outcome to be achieved by each individual employee.In performance standards, the standards are set for the employees as per the previously arranged time period. When the employees start performing their jobs, they come to know what is to be done, what has been done, and what remains to be done.In the third step the actual level of goals attained are compared with the goals agreed upon. This enables the evaluator to find out the reasons variation between the actual and standard performance of the employees. Such a comparison helps devise training needs for increasing employees performance it can also explore the conditions having their bearings on employees performance but over which the employees have no control.Finally, in the periodic review step, corrective measure is initiated when actual performance deviates from the slandered established in the first step-goal-setting stage. Consistent with the MBO philosophy periodic progress reviews are conducted in a constructive rather than punitive manner.The purpose of conducting reviews is not to degrade the performer but to aid in his/her future performance. From a motivational point of view, this would be representative of McGregors theories.Limitation of MBOMBO is not a panacea, cure for all organisational problems.As with other methods, it also suffers from some limitations as catalogued below: (i) Setting Un-measurable ObjectivesOne of the problems MBO suffers from is unclear and un-measurable objectives set for attainment. An objective such as will do a better job of training is useless as it is un-measurable. Instead, well have four subordinates promoted during the year is a clear and measurable objective.(ii) Time-consumingThe activities involved in an MBO programme such as setting goals, measuring progress, and providing feedback can take a great deal of time.

(iii) Tug of WarSetting objectives with the subordinates sometimes turns into a tug of war in the sense that the manager pushes for higher quotas and the subordinates push for lower ones. As such, goals so set are likely to be unrealistic.(iv)Lack of TrustMBO is likely to be ineffective in an environment where management has little trust in its employees. Or say, management makes decisions autocratically and relies heavily on external controls.Behaviourally Anchored Rating Scales (BARS)The problem of judgmental performance evaluation inherent in the traditional methods of performance evaluation led to some organisations to go for objective evaluation by developing a technique known as Behaviourally Anchored Rating Scales (BARS) around 1960s. BARS are descriptions of various degrees of behaviour with regard to a specific performance dimension.It combines the benefits of narratives, critical incidents, and quantified ratings by anchoring a quantified scale with specific behavioural examples of good or poor performance. The proponents of BARS claim that it offers better and more equitable appraisals than do the other techniques of performance appraisal we discussed so far.Developing BARS typically involves five steps: 1. Generating Critical IncidentsCritical incidents (or say, behaviours) are those which are essential for the performance of the job effectively Persons who are knowledgeable of the job in question (jobholders and/or supervisors) are asked to describe specific critical incidents of effective and ineffective performance. These critical incidents may be described in a few short sentences or phrases using the terminology.2. Developing Performance DimensionsThe critical incidents are then clustered into a smaller set of performance dimensions, usually five to ten. Each cluster, or say, dimension is then defined.3. Reallocating IncidentsVarious critical incidents are reallocated dimensions by another group of people who also know the job in question. Various critical incidents so reallocated to original dimensions are clustered into various categories, with each cluster showing similar critical incidents. Those critical incidents are retained which meet 50 to 80% of agreement with the cluster as classified in step 2.4. Scaling IncidentsThe same second group as in step 3 rates the behaviour described in each incident in terms of effectiveness or ineffectiveness on the appropriate dimension by using seven to nine points scale. Then, average effectiveness ratings for each incident are determined to decide which incidents will be included in the final anchored scales.5. Developing Final BARS InstrumentA subset of the incidents (usually six or seven per cluster) is used as a behavioural anchor for the final performance dimensions. Finally, a BARS instrument with vertical scales is drawn to be used for performance appraisal.BARS method of performance appraisal is considered better than the traditional ones because it provides advantages like a more accurate gauge, clearer standards, better feedback, and consistency in evaluation. However, BARS is not free from limitations.The research on BARS indicates that it too suffers from distortions inherent in most rating scales. The research study concluded that it is clear that research on BARS to date does not support the high promise regarding scale independence In short, while BARS may outperform conventional rating techniques, it is clear that they are not a panacea for obtaining high interrater reliabilityAssessment CentresThe introduction of the concept of assessment centres as a method of performance method is traced back in 1930s in the Germany used to appraise its army officers. The concept gradually spread to the US and the UK in 1940s and to the Britain in 1960s.The concept, then, traversed from the army to business arena during 1960s. The concept of assessment centre is, of course, of a recent origin in India. In India, Crompton Greaves, Eicher, Hindustan Lever and Modi Xerox have adopted this technique of performance evaluation.In business field, assessment centres are mainly used for evaluating executive or supervisory potential. By definition, an assessment centre is a central location where managers come together to participate in well-designed simulated exercises. They are assessed by senior managers supplemented by the psychologists and the HR specialists for 2-3 days.Assessee is asked to participate in in-basket exercises, work groups, simulations, and role playing which are essential for successful performance of actual job. Having recorded the assessees behaviour the raters meet to discuss their pooled information and observations and, based on it, they give their assessment about the assesses. At the end of the process, feedback in terms of strengths and weaknesses is also provided to the assesses.The distinct advantages the assessment centres provide include more accurate evaluation, minimum biasedness, right selection and promotion of executives, and so on. Nonetheless, the technique of assessment centres is also plagued by certain limitations and problems. The technique is relatively costly and time consuming, causes suffocation to the solid performers, discourages to the poor performers (rejected), breeds unhealthy competition among the assesses, and bears adverse effects on those not selected for assessment.360 Degree AppraisalYet another method used to appraise the employees performance is 360 degree appraisal. This method was first developed and formally used by General Electric Company of USA in 1992. Then, it travelled to other countries including India. In India, companies like Reliance Industries, Wipro Corporation, Infosys Technologies, Thermax, Thomas Cook etc., have been using this method for appraising the performance of their employees. This feedback based method is generally used for ascertaining training and development requirements, rather than for pay increases.Under 360 degree appraisal, performance information such as employees skills, abilities and behaviours, is collected all around an employee, i.e., from his/her supervisors, subordinates, peers and even customers and clients.In other worlds, in 360-degree feedback appraisal system, an employee is appraised by his supervisor, subordinates, peers, and customers with whom he interacts in the course of his job performance. All these appraisers provide information or feedback on an employee by completing survey questionnaires designed for this purpose.All information so gathered is then compiled through the computerized system to prepare individualized reports. These reports are presented to me employees being rated. They then meet me appraiserbe it ones superior, subordinates or peersand share the information they feel as pertinent and useful for developing a self-improvement plan.In 360 degree feedback, performance appraisal being based on feedback all around, an employee is likely to be more correct and realistic. Nonetheless, like other traditional methods, this method is also subject to suffer from the subjectivity on the part of the appraiser. For example, while supervisor may penalise the employee by providing negative feedback, a peer, being influenced by give and take feeling may give a rave review on his/her colleague.Cost Accounting MethodThis method evaluates an employees performance from the monetary benefits the employee yields to his/her organisation. This is ascertained by establishing a relationship between the costs involved in retaining the employee, and the benefits an organisation derives from Him/her.While evaluating an employees performance under this method, the following factors are also taken into consideration: 1. Unit wise average value of production or service.2. Quality of product produced or service rendered.3. Overhead cost incurred.4. Accidents, damages, errors, spoilage, wastage caused through unusual wear and tear.5. Human relationship with others.6. Cost of the time supervisor spent in appraising the employee.Benefits of Performance AppraisalsMeasures an employees performance.Helps in clarifying, defining, redefining priorities and objectives.Motivates the employee through achievement and feedback.Facilitates assessment and agreement of training needs.Helps in identification of personal strengths and weaknesses.Plays an important role in Personal career and succession planning.Clarifies team roles and facilitates team building.Plays major role in organizational training needs assessment and analysis.Improves understanding and relationship between the employee and the reporting manager and also helps in resolving confusions and misunderstandings.Plays an important tool for communicating the organizations philosophies, values, aims, strategies, priorities, etc among its employees.Helps in counseling and feedback.

Rating Errors in Performance AppraisalsPerformance appraisals are subject to a wide variety of inaccuracies and biases referred to as 'rating errors'. These errors can seriously affect assessment results. Some of the most common rating errors are: -Leniency or severity: -Leniency or severity on the part of the rater makes the assessment subjective. Subjective assessment defeats the very purpose of performance appraisal. Ratings are lenient for the following reasons:a)The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will reflect poorly on his or her own worthiness.b)He/She may feel that a derogatory rating willbe revealed to the rate to detriment the relations between the rater and the ratee.c)He/She may rate leniently in order to win promotions for the subordinates and therefore, indirectly increase his/her hold over him.Central tendency: -This occurs when employees are incorrectly rated near the average or middle of the scale. The attitude of the rater is to play safe. This safe playing attitude stems from certain doubts and anxieties, which the raters have been assessing the rates.Halo error: -A halo error takes place when one aspect of an individual's performance influences the evaluation of the entire performance of the individual. The halo error occurs when an employee who works late constantly might be rated high on productivity and quality of output as well ax on motivation. Similarly, an attractive or popular personality might be given a high overall rating. Rating employees separately on each of the performance measures and encouraging raters to guard against the halo effect are the two ways to reduce the halo effect.Rater effect: -This includes favoritism, stereotyping, and hostility. Extensively high or low score are given only to certain individuals or groups based on the rater's attitude towards them and not on actual outcomes or behaviors; sex, age, race and friendship biases are examples of this type of error.Primacy and Regency effects: -The rater's rating is heavily influenced either by behavior exhibited by the ratee during his early stage of the review period (primacy) or by the outcomes, or behavior exhibited by the ratee near the end of the review period (regency). For example, if a salesperson captures an important contract/sale just before the completion of the appraisal, the timing of the incident may inflate his or her standing, even though the overall performance of the sales person may not have been encouraging. One way of guarding against such an error is to ask the rater to consider the composite performance of the rate and not to be influenced by one incident or an achievement.Performance dimension order: -Two or more dimensions on a performance instrument follow each other and both describe or rotate to a similar quality. The rater rates the first dimensions accurately and then rates the second dimension to the first because of the proximity. If the dimensions had been arranged in a significantly different order, the ratings might have been different.Spillover effect: -This refers lo allowing past performance appraisal rating lo unjustifiably influence current ratings. Past ratings, good or bad, result in similar rating for current period although the demonstrated behavior docs not deserve the rating, good or bad.

Roles in the performance appraisal processa)Reporting ManagerProvide feedback to the reviewer / HOD on the employees behavioral traits indicated in the PMS Policy ManualEnsures that employee is aware of the normalization / performance appraisal processAddress employee concerns / queries on performance rating, in consultation with the reviewer

b)Reviewer (Reporting Managers reporting Manager)Discuss with the reporting managers on the behavioral traits of all the employees for whom he / she is the reviewerWhere required, independently assess employees for the said behavioral traits; such assessments might require collecting data directly from other relevant employeesc)HOD (In some cases, a reviewer may not be a HOD)Presents the proposed Performance Rating for every employee of his / her function to the Normalization committee.HOD also plays the role of a normalization committee memberOwns the performance rating of every employee in the departmentd)HR HeadSecretary to the normalization committeeAssists HODs / Reporting Managers in communicating the performance rating of all the employeese)Normalization CommitteeDecides on the final bell curve for each function in the respective Business Unit / CircleReviews the performance ratings proposed by the HODs, specifically on the upward / downward shift in ratings, to ensure an unbiased relative ranking of employees on overall performance, and thus finalize the performance rating of each employee.Key concepts in performance management systemIn order to understand the Performance Management System at Infowiz Company,some conceptsneed to be explained which play a very important role in using the PMS successfully.

They are:KRAS (Key Result Areas):The performance of an employee is largely dependent on the KRA score achieved by the employee during that particular year. Thus, it is necessary to answer a few basic questions i.e.oWhat are the guidelines for setting the KRAs for an employee?oHow does an employee write down his KRAs for a particular financial year?oKRAs: The Four Perspectives.oHow is the KRA score calculated for an employee on the basis of the targets sets and targets achieved?Behavioral Traits:Some ofthe qualitative aspects of an employees performance combined with the general behavioral traits displayed by the employee during a year constitutes his behavior traits.An employee is assigned the rating on the basis of the intensity of the behavior displayed by him. They play a very important role in the deciding the final performance rating for an employee as is even capable of shifting the rating one level upwards/downwards.Bharti 2010 Leadership Competency Framework:This competency framework is a simple and structured way to describe the elements of behaviors required to perform a role effectively. This framework also tries to assess the performance of an employee objectively. The Performance Rating Process:The rating process tries to explain the four different types of rating that an employee can achieve i.e.EC, SC, C and PC.It also explains the criteria, which is considered for awarding any of these ratings to the employee.Promotion And Rating Distribution Guidelines:The promotion and normal distribution guidelines provide the framework within which the performance appraisal process has to work. It is very important that the HR department pays due attention to these guidelines while preparing the bell curves for various functions and the consolidated bell curve for all the functions. These guidelines also help in deciding upon the promotion cases in a year.

Performance Rating ProcessEXCEPTIONAL CONTRIBUTOR (EC)Performs consistently and substantially above expectations in all areasAchieves a final score greater than or equal to 115%Consistently delivers on stretch targetsIs proactiveSpots and anticipates problems, implements solutionsSees and exploits opportunitiesDelivers ahead of timeSees the wider picture-impacts across businessFocuses on whats good for the businessSeen as role model by othersRecognized as exceptional by other functions as well Motivates others to solve problems Develops othersProvides open and honest feedbackAble to establish and lead cross-functional teamsSIGNIFICANT CONTRIBUTOR (SC) Performs above expectations in all areasAchieves final score between 100-114%Versatile in his/ her area of operationDevelops creative solutions and require little / minimal supervisionSets examples for othersTake ownership of own developmentCoaches othersDemonstrates business initiativeIs self motivatedSupportive team playerLeads own team very effectivelyDemonstrate functional initiative

Performance Appraisal in Infowiz Company Infowiz Company IdeologiesVision To be the world class corporate constantly furthering the interest of all stakeholder.

HR VisionLead and Facilitate continuous change towards organizational excellence ; create a learning and vibrant organization with high sense of pride amongst its members

Appraisal & Reward appraisal New Appraisal System based on KRAs &Targets

Review of Targets at regular Intervals

People Development an important KRA

Reward

Promotions based on Performance

Productivity & Profit-linked Incentive Schemes

Training including Long-term Term

Career Design

Performance & Potential based Appraisals

Fast Track Option for High-performers

Promotions after Managers Vacancy based

Interviews for promotions above Managers

Selection of Supervisors: Performance / Attendance / Discipline Record Written Test & Interview

Job Rotation - including Inter-functional

Retention & Employee Welfare

Residential Colonies for Employees

Hospitalization Reimbursement on actual without Ceiling Vehicle Loans

Household Equipment Loans

House Building Advance

Annual Advance

PF Trust for better Mgt.,Service & speedy redress

Proposed MUL Pension SchemeSuggestion Scheme &Quality Circles

For better quality and productivity

Through involvement of all employees and teamwork

Criteria

Idea

Efforts

Result : Cost reduction / Q Improvement / Productivity Improvement

HR Initiatives Realigning organisation culture based on new vision & values

Objectives performance management & development system

Performance linked reward and recognition system Career planning & promotion policy Revised recruitment policy Competency mapping Strong focus on training initiatives-build a learning organisation- continuous value addition to professional skill- customised training training to the personnel of business partners Internal communication Union alignment Employee involvement & participation

Infowiz Company Appraisal System

A detailed discussion with HR head Mrs. Urvashi Mehta of Infowiz Company, gave us the insight in the performance appraisal system followed in the company. The appraisal model which is followed on annual basis starting from the month of April till March has been extremely effective for the employees of Infowiz Company. Half yearly appraisal system was started a year ago. This activity was started keeping in mind the dynamic behavior of the industry. With a half yearly appraisal system, the employee gets feedback twice a year, which gives him/her a chance to re-look at his/her approach of working. Necessary steps are also undertaken for employees who deviate from their goals. They have introduced a comprehensive system of quarterly appraisals where an employee selects his/her own goals or Key Result Area (KRAs) every quarter and him/her self assesses his/her own performance against these parameters. At Spice jet while formally the process is annual, for several of the frontline employees, there are performance related quarterly payouts designed to reward them with incentives for their performance. This has resulted in quarterly assessments which are aligned overall to annual KRAs.Infowiz Company has a midterm review for all those who have been performers, thereby creating an expectation amongst the employees of an increase in salary twice a year if they perform well. They used to have annual appraisals earlier, but then they felt that the incentives are not enough to motivation the sales department, which generates major revenues or the organization.They do give monetary increments and designation hikes, according to the performance. If the employee deserves both, they give him/her both the advantages otherwise at least one of them. Designation hikes are given annually. These are proportional to effort of the individual, team and the department. Designation changes are given keeping in mind the immense responsibility one has to shoulder in a high rank. Monetary increments are primarily incentives that are given either in cash or kind for example they give them travel package within India or outside. Also, they have an accumulating incentive scheme in which employees can accumulate incentives and get them annually with interest.To meet the new demands of the business and to motivate the employees for higher performance, they have started linking a part of the salary increase to individual performance measures as variable pay. At present, between 6 to 8 percent of the compensation is variable pay, which they are planning to increase over a period of time. Executives are categorized in levels based on their performances in a relative ranking and based on outcome performance-linked pay is awarded.

Goal-SettingModelAgoalsettingprogram in an organizationrequirescarefulplanning.Asshownin the figure, thefirstthree factorsingoal settingprocessareestablishingthegoal,achievinggoalcommitment,andovercoming resistancetogoalacceptance. Goalscanbeestablishedin a variety ofways.Bestwayistosetbyjointparticipationbetweentheemployeeandthesupervisor.This methodoftenleadstoemployeecommitment, acrucialingredientin effectivegoalsetting.

GoalSettingS.M.A.R.T.* Goals Specific precise and detailed Measurable with criteria for determining progress and success Achievable attainable and action-oriented Realistic relevant and aligned Time-related grounded within a time-frame

For this purpose, an online template is circulated in the organization. Superiors fill out that form keeping in view the performance of their subordinate over the year. This feedback becomes the basis of the promotion of the employees. Superior is responsible for categorizing the employees in four category, namely ABCDThis categorization is done both on the basis of performance and the goals they were given.This whole system is commonly known as 90 degree appraisal system also called 2 tiers.

Research methodologyResearch: Research is a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation.Abstract Infowiz Company is Indias One of the most successful software solution company. It currently Employees 30 personnel who are constantly evaluated and appraised. This gives us the opportunity to study the performance appraisal method by the company and its efficiency towards employees as well as Organization.Objective of the Study To carry out the study at Infowiz Company, we framed the following objectives1. Identification of the technique of performance appraisal followed in Infowiz Company .2. Employee attitude towards the present appraisal system.3. Review of the current appraisal system in order to 1. Enhance productivity 2. Attain global standards4. To provide suggestions & recommendations from the study conducted.

Hypotheses of the Study1. Performance Appraisal is not having positive effect on Infowiz Company employee.2. Performance Appraisal Is having positive effect on Infowiz Company Employees.Research Design:Research design refers to the framework or plan for a study that guides the collection and analysis of data. A research design calls for developing the most efficient plan of gathering the needed information. The design of a research study is based on the purpose of the study. A research design is the specification of methods and procedures for acquiring the information needed. It is the overall pattern or framework of the project that stipulates what information is to be collected from which source and by what procedures. A typical research design of a company basically tries to resolve the following issues:Determining Data Collection DesignDetermining Data MethodsDetermining Data SourcesDetermining Primary Data Collection MethodsDeveloping QuestionnaireDetermining Sampling Plan

Types of Research Design1) Explorative Research Design: Explorative studies are undertaken with a view to know more about the problem. These studies help in a proper definition of the problem and development of specific hypothesis is to be tested later by more conclusive research designs. Its basic purpose is to identify the factors underlying a problem and to determine which one of them need to be further researched by using rigorous conclusive research designs.2) Conclusive Research Design: Conclusive Research Studies are more formal in nature and are conducted with a view to eliciting more precise information for purpose of making marketing decisions. These studies can be either:Descriptive orExperimental

Thus, it was mix of both the tools of Research Design that is, Explorative as well as Conclusive.The Study is primarily based on the Primary data Collected through Questionnaire from Infowiz Company Employees.Sampling: An integral component of a research design is the sampling plan. Specifically, it addresses three questions Whom to survey (The Sample Unit) How many to Survey (The Sample Size) How to select them (The Sampling Procedure)

Making a census study of the whole universe will be impossible on the account of limitations of time. Hence sampling becomes inevitable. A sample is only a portion of the total employee strength. According to Yule, a famous statistician, the object of sampling is to get maximum information about the parent population with minimum effort. Methods of Sampling 1) Probability sampling: Probability Sampling is also known as random sampling or chance sampling. Under this sampling design every individual in the organization has an equal chance, or probability, of being chosen as a sample. This implies that the section of sample items is independent of the persons making the study that is , the sampling operation is controlled objectively so that the items will be chosen strictly at random.

2) Non Probability Sampling:Non Probability Sampling is also known as deliberate sampling, purposeful and judgmental sampling. Non-Probability Sampling is that which does not provide every individual in the Organization with a known chance of being included in the sample.

Data Collection TechniqueCollection of data is the first step in statistics. The data collection process follows the formulation for research design including the sample plan. The data can be secondary or primary. Collection of Primary Data during the course of the study or research can be through observations or through direct communication with respondents on one form or another or through personal interviews. I have collected primary data by the means of a Questionnaire. The Questionnaire was formulated keeping in mind the objectives of the research study. Secondary data means data that is already available i.e., they refer to data, which has already been collected and analyzed by someone else. When a secondary data is used, the researcher has to look into various sources from where he can obtain data. This includes information from various books, periodicals, magazines etc.Contact Method Personal InteractionResearch Methodology AdoptedResearch Design : Descriptive research Research Instrument: Structured Questionnaire

Sampling Plan a. Sample Size = 50 Employeesb. Sample Area = Chandigarhc. Duration = 6 weeks. Sampling Design Convenience Sampling, as the name implies, is based on the convenience of the researcher who is to select a sample. Respondents in the sample are included in it merely on account of their being available on the spot where the survey was in progress. Source of Data a) Primary Data : Structured Questionnaire b) Secondary Data : Journals, Booklets, Company Data, etc.

Limitations of study The following are the limitations faced by me during the course of the study:The sample consisted only of employees in the day shift. Employees of the night shift were not considered for the purpose of study.There is no concrete basis to prove the response given is a true measure of the opinion of all the employees as a whole.Convenient sampling was used as the mode of conducting the research.The questionnaire contained mostly multiple-choice questions; therefore many respondents may not have given a proper thought before answering the questions.The response of the respondents may not be accurate thinking that the management might misuse the data.Sensitive company information cannot be displayed in the project report.Most respondents might be influenced by their peers in answering the questions.Due to the fact that most of the respondents were young, the questions might not have been answered with due sincerity.Analysis and InterpretationQ1- how long you work in this organization?

Interpretation-From the above pie chart we conclude that the maximum year of service of the employees of Infowiz Company is maximum between 2-4years(i.e 50%) and minimum in more than 6 year time period (i.e 10%).Q2-Are you aware about technique of performance appraisal?

OptionsNo. of Responses

Yes 36

No 14

Interpretation-From the above pie chart we conclude that maximum employees are aware of their performance appraisal technique (i.e 72%) and the employees not aware of it is minimum (i.e 28%)

Q3-what is your opinion about present performance appraisal system followed in this organization?

OptionsNo. of Responses

Fully Satisfied12

Satisfied22

Cant Say15

Dissatisfied1

Interpretation-From the above pie chart we conclude that maximum employees are satisfied with the present appraisal system (i.e. 44%) and minimum (i.e. 2%) are dissatisfied.

Q4- Whats your perception regarding the frequency of appraisal? Options No. of Responses

Once During The Service Period1

Continuous46

Never0

Cant Say3

Interpretation-From the above pie chart we find that the maximum (i.e 92%) of the employees think that the frequency of appraisal must be continuous whereas minimum (i.e 0%) none of the employees feel that Infowiz Company should not appraise.

Q5-If continuous appraisal what should be the gap between two appraisal period

Options No. of Responses

Quarterly10

Half Yearly22

Yearly18

Interpretation-From the above pie chart we conclude that maximum (i.e 44%) of the employees want to consider performance appraisal half yearly whereas minimum (i.e 20%) of them want it quarterly.Q6- How Performance Appraisal affects the productivity of the employeesMotivatedIndifferentDemotivated

+ Feedback3812-

- Feedback121028

Neutral24215

Interpretation- From the above chart we conclude that the affect of performance appraisal with a positive feedback and motivated results lead to maximum productivity of employees(i.e 76%) whereas none of the employees are demotivated.

Giving negative feedback with demotivating results leads to minimum productivity of employees (i.e 56%) whereas minimum number of employees would be indifferent towards it.

Giving a neutral feedback with motivating results leads to average productivity of employees (i.e 48%) whereas only a few lead to low productivity with demotivating results (i.e 10%)

Q7- Who should do the appraisal? OptionsNo. of Responses

Superior12

Peer0

Subordinate0

Self Appraisal4

Consultant2

All of the above24

Superior + Peer8

Interpretation- From the above pie chart we conclude that the maximum employees (i.e 24%) want to get the appraisal through superior, self appraisal, consultant. Whereas none of them want to get it done from their peers and subordinates.Q8- Does appraisal help in performance area? OptionsNo. of Responses

Yes37

No5

Somewhat8

Interpretation-If the process of appraisal does not lead to the improvement of the skills and proficiency of the employees, the very purpose of appraisal becomes illogical. In the survey conducted it was observed that nearly 74 % of the respondents agree that Performance Appraisal does leads to polishing the skills of the employees. Nearly 10 % of the respondents view that it does not serve this purpose and around 16 % were not able to respond as to whether it serve any such purposes or not.

Q9-Does personal bias creeps in while appraising an employee? OptionsNo. of Responses

Yes41

No9

Interpretation-In the process of appraising, both the parties are human being, that is, the one who is being apprised and the other who is appraising. Thus, there bound to be subjectivity involved, be it an objective way of appraising. Thus, when asked from among the sample size of 50 respondents, as huge as 82 % respondents that personal bias do creep in while appraising an individual. Hence, it is inevitable to say that personal likings do not come in the process of appraisal. It is the extent to which the appraiser manages it so that it does not become very partial and bias.

Q10 If a given chance would employees like to review the current appraisal technique? OptionsNo. of Responses

Yes16

No22

Cant Say12

Interpretation-From the above pie chart we conclude that the maximum employees (i.e 32%) do not want to review the performance appraisal system whereas minimum (i.e 24%) cant comment about the same.

Q11- What is the appropriate method of conducting the performance appraisal? OptionsNo. of Responses

Ranking Method6

Paired Comparison0

Critical Incidents3

MBO10

Assessment Centre2

360 degree29

Interpretation-From the above pie chart we conclude that the maximum (i.e 58%) of the employees prefer the 360 degree technique of performance appraisal whereas the minimum (i.e 0%) want paired comparison technique.

Q12- Does performance appraisal leads to identification of hidden potential? OptionsNo. of Responses

Yes48

No2

Interpretation-From the above pie chart we interpret that maximum (i.e 96%) of the employees feel that performance appraisal leads to identification of hidden potential whereas minimum (i.e 4%) disagree with the same.

Suggestions and ConclusionAfter having analyzed the data, it was observed that practically there was no appraisal in the organization. To be an effective tool, it has to be on the continuous basis. This is the thing that has been mentioned time and again in the report, as, in the absence of continuity, it becomes a redundant exercise. Before actually deciding drafting what should be the kind of appraisal the following things should be taken care of:1. The very concept of performance appraisal should be marketed throughout the organization. Unless this is done, people would not accept it, be it how important to the organization.2. To market such a concept, it should not start at bottom, instead it should be started by the initiative of the top management. This would help in percolating down the concept to the advantage of all, which includes the top management as well as those below them. This means that the top management has to take a welcoming and positive approach towards the change that is intended to be brought.3. Further, at the time of confirmation also, the appraisal form should not lead to duplication of any information. Instead, detailed appraisal of the employees work must be done which must incorporates both the work related as well as the other personal attributes that are important for work performance.4. It should be noted that the appraisal form for each job position should be different as each job has different knowledge and skill requirements. There should not be a common appraisal form for every job position in the organization.5. The job and role expected from the employees should be decided well in advance and that too with the consensus with them. 6. A neutral panel of people should do the appraisal and to avoid subjectivity to a marked extent, objective methods should be employed having quantifiable data.7. The time period for conducting the appraisal should be revised, so that the exercise becomes a continuous phenomenon.8. Transparency into the system should be ensured through the discussion about the employees performance with the employee concerned and trying to find out the grey areas so that training can be implemented to improve on that.Ideally in the present day scenario, appraisal should be done, taking the views of all the concerned parties who have some bearing on the employee. But, since a change in the system is required, it cannot be a drastic one. It ought to be gradual and a change in the mindset of both the employees and the head is required. a) Fully Satisfied b) Satisfiedc) Cant Say d) Dissatisfied 6. Should the appraisal process be: a) Once during the service period b) Continuous c) Never d) Cant Say 7. What in your opinion should be the time period of conducting continuous Appraisal?a) Quarterlyb) Half Yearly c) Yearly Any specific reason 8. Does Performance Appraisal helps in improving the productivity of the employees?MotivatedIndifferentDemotivated

+ Feedback

- Feedback

Neutral

9. Who in your opinion should appraise the employee? a) Superior b) Peer c) Subordinates d) Self Appraisal e) Consultant f) All of the above 10. Does the appraisal system helps in polishing the skills or performance area? a) Yesb) No c) Somewhat 11. Do you think personal bias creeps in while appraising an individual? a) Yes b) No12. If given a chance or an opportunity would you like that the current appraisal procedure should be reviewed? a) Yes b) No c) Cant Say13. What according to you should be the appropriate method for conducting performance appraisal?a) Rating the employee on number of traits along with the range of performance for each by the supervisor. b) For every trait, each subordinate is paired with and compared to every other Subordinate. c) Reviewing employees on the basis of identified specific examples of good Or poor performance.d) Setting specific measurable goals with each employee and periodically reviewing the progress made.e) Reviewing performance through case studies, presentations, role playing, etc. for future performance. f) Receiving feedback from people whose views are considered helpful and relevant including the appraise himself.14. Does Performance Appraisal leads to identification of hidden potential of the employees? a) Yes b) No 15. Suggestions and views...............................Thank you, Date --/--/--

Case study Performance appraisal and careerOpportunities: A case study

IntroductionThe role of human capital, competence and people issues is ascending on the strategic agenda of both public and private enterprise. On the back of a period with heavy focus on capital efficiency, asset values and shareholder returns, managers of private corporations and public organizations now seem to augment their approach through an upgrade of issues relating to human capital management. The path-breaking development of new technologies is no longer limited to the technology, media and telecom industries. Rather, new innovations have made their way into virtually all sectors of the modern economy. People and competence are crucial for the productivity of these technologies, and therefore also for the performance of public enterprise, and for the competitiveness of private companies. Strong economic growth has also led to capacity pressures in large parts of the OECD area, not least in the labour market. High skill labour is an increasingly scarce input for competitive firms and organizations. Consequently, strategic issues of human capital management have gained strength throughout the economy.Performance appraisal has become increasingly important in this respect. The key idea is to establish a reward system that optimizes the efforts and contribution of leaders and employees to the general performance of their organisation. As noted by Cleveland, Murphy, and William(1989), the propagation of performance appraisal systems is motivated by a broad range of concerns, including promotions, terminations, salary administration, and the development of adequate competence and expertise. Performance appraisal may be useful both in the cross-sectional dimension (for comparison between individuals) and for the time dimension (for comparison of individual performance over time). There is a large body of research on performance appraisal systems. The early literature was dominated by psychologists, and focused on the psychometric properties of appraisal, in particular the role of supervisors and the precision on their performance evaluation (see Milkovich and Wigor, 1991, for a survey) Recent psychological literature has put more emphasis on worker reaction to appraisals, and the social context in which appraisal occurs (see Keeping and Levy, 2000; Levy and Williams, 2004). Issues of employee satisfaction with performance appraisal systems are explored by Boswell and Benson (2000) and Brown and Benson (2003), both arguing that individual involvement and development opportunities play an important role for the success ratio of performance appraisal systems. Kuvaas (2006) investigates the relationships between performance appraisal on the one hand, and employee outcomes in terms of performance, organisational commitment and turnover intention on the other. He finds that motivational issues play an important role for the efficiency of performance appraisal systems. The role of trust for the acceptance of performance appraisal has also caught extensive attention in recent research (e.g., Zaheer, McEvily and Perrone, 1998; Reinke, 2003; Kickul, Gundry, and Posig, 2005). Results from these studies clearly suggest that the level of trust between employee and leader is an important predictor for the general acceptance and advancement of performance appraisal systems.Economists started to gain a theoretical interest in performance appraisal in the 1970s when economics of incentives and asymmetric information made its way into the theoretical literature. However, it is not until recently that economists have begun to investigate performance appraisal empirically. Some studies focus on the productivity-effect of performance pay (see e.g. Lazear 2000), while other recent papers study the individual and job based determinants of performance appraisals. Key findings from this literature indicate a wider dispersion of labour income due to performance appraisal, both within each firm (Barth et al., 2008), and for society as a whole (Lemieux, MacLeod, and Parent, 2007). Grund and Sliwka (2007) argue that the prevalence of performance appraisal correlates negatively with risk aversion, which again is an increasing function of age, and which is more pronounced among women. Consequently, performance appraisal systems are most common among young and middle-aged men. Yet, there is still a surprisingly little empirical research on the link between performance appraisal and this kind of background variables.Based on a unique and powerful set of survey data from a large international oil company, we explore perceptions of performance appraisal and career opportunities among leaders and their employees. Our measure of performance appraisal includes elements of reward and recognition, and might be seen as a backward-looking indicator. On the other hand, individual perceptions and judgments regarding career opportunities may be seen as a forward-looking measure of performance appraisal (e.g., Prendergast, 1999). Accordingly, we estimate and present econometric models for both these perspectives.We present a case study, rather than a broad economy-wide cross-sectional assessment (e.g., Grund and Sliwka, 2007). One advantage with case studies is that we to some extent control for sorting effects, since the employees of our data set to a large extent are exposed to common organizational changes and business cycles (e.g. Lazear, 1998; Marsden, 2004). We combine knowledge of the formal appraisal system that the employees are exposed to, with their subjective perception of performance appraisal. The employees are asked to what extent performance forms the basis for recognition and reward, and the answers on this question is our dependent variables in the econometric analysis. This is important since formal appraisal systems such as bonus contracts, commissions and piece rates are just a small part of total performance appraisal. Performance-related reward, for instance, is often based on supervisors subjective evaluation (see MacLeod, 2003 for analysis), and these evaluations are not captured in empirical studies of formal incentive systems.Our main results are as follows: First, the perceived alignment of efforts and rewards is more pronounced among women than for men. This result is in contrast to findings in cross-sectional studies where women sort into jobs with lower degree of performance appraisal (e.g. Barth et al. 2008; Grund and Sliwka, 2007). An implication may be that women have a steeper wage curve than men in this particular company, but to our knowledge, there is no systematic favouring of women. A more plausible explanation is that women have different references and information bases than men (e.g., Hind and Baruch, 1997). A given relationship between performance and reward may thus be perceived as gratifying among women, but not necessarily among men.Second, we find that the connection between perceived achievement and appreciation is strengthened by time of service for leaders, but not for employees in non-managerial positions.The longer an employee has worked in the company, the weaker relationship he/she finds between performance and