effectiveness of performance appraisal.docx

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ABSTRACT

A STUDY ON THE EFFECTIVENESS OF PERFORMANCE APPRAISALSYSTEM IN CORPORATION,

The study is mainly to find out the Effectiveness of Performance Appraisal

system used in the study is also to find out the factors which influence the performance

of workers.

The research study conducted is descriptive in nature and the population size

used for this study is 100. Both primary and secondary data are collected to meet the

requirements. or collectin! the data a structured questionnaire was used. The

questionnaire is with multiple choices" open ended and close ended questions.

The study is mainly #ased on the primary data and the required primary data

were collected throu!h the structured questionnaire from the entire population. $n this

study percenta!e analysis and two% way analysis is used to interpret the data collected.

The study revealed that the ma&ority of the respondents feel that company has to

create awareness amon! employees a#out the importance of performance appraisal

system. 'a&ority of the respondents feels that the system is fair and clear and helps in

developin! and improvin! their performance.

$n his study the respondents are the total population. (ince the size of the

population is finite.

Based on the information !iven #y the respondents it is clear that importance

a#out the appraisal technique is hi!h. There is a !eneral feelin! of insecurity amon! the

people re!ardin! the &o# since the result is hi!hly validated.

)ence the market potential for employees is hi!h the company has to formulate

appropriate strate!ies to !et many potential employees to do the #usiness.

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CHAPTER 1

INTRODUCTION

An or!anization*s !oals can #e achieved only when people put in their #est

efforts. Employee assessment is one of the fundamental &o#s of )+'. But not an easy

thou!h. Performance appraisal ,it is the process of evaluatin! the performance and

qualifications of the employees in terms of the requirements of the &o# for which he is

employed" for purposes of administration includin! placement" selection for

promotions" providin! financial rewards and other actions which require differential

treatment amon! the mem#ers of a !roup as distin!uished from actions affectin!

mem#ers equally-.

$t is often #elieved that the most si!nificant personnel human resource

outcomes involve contri#utions of employees for the attainment of or!anizational !oals.

These contri#utions refers to employee*s performance" it refers to how effectively

employees meet the duties and responsi#ility of the &o#. $n focusin! on utilization of

human resource it is implied that work activities can #e made more efficient and

productive" and that opportunities for personal fulfillment throu!h work can #e

enhanced. Performance can #e improved #y makin! sure that ri!ht person is chosen for

the ri!ht &o#. Efforts should #e made in such a way that employees will voluntarily and

!ladly cooperate in the operation of the industry and to promote peace and production

for the prosperity of the nation.

To measure individual &o# performance the personal characteristics must #e

determined which leads to increased productivity and contri#ute to employee

performance. $t is assumed here that there are characteristics and traits that lead to

productivity and these can #e perceived" measured and evaluated.

'ost mana!ers and supervisors have at some time other questioned on the #asis

or relevance of appraisal" as it more commonly termed. /espite increasin! attention

!iven to evaluation particles and development of evaluation system disconcertin!ly the

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difficulties the dou#ts and the lack of credi#ility a#out various systems appear to have

increased. An appraisal system in an or!anization has to consistent with its mana!erial

styles and centrally controlled mana!ement would a often find it difficult to promote

and sustain an appraisal system that is #ased on participation of employees" certainly

types of appraisal system may not #e suited certain types of technolo!y.

$n fact mana!ement has to make clear choice a#out their mana!erial styles and

their relief and approaches vis%%vis employee development and work or!anized and

institute personal appraisal system with in such a frame work. The appraisal system its

o#&ective and machines require definite formulation and the process particularly the

human response continuous attention.

The use of /e!ree feed#ack in or!anization has increased dramatically me

recent years. Today most people have heard of it and many are familiar with its #asic

elements and procedures a person performance is rated #y a ran!e of coworkers

includin! superior peers su# ordinates and occasionally customers these are feed #ack to

the person and compare with self%ratin! development !oals are set often in connection

with a strate!y for achievin! these !oals sometimes there is used #y the or!anization to

make administrative decision a#out such thin!s as pay rides and promotion.

The main aims of a!aisa" a!e#$

1. makin! reward decision

. $mprovin! performance

2. motivatin! staff

3. succession plannin! and identifyin! potential4. promotin! mana!ers su# ordinate dialo!ue

Pe!fo!man%e a!aisa"#

Defini&ion

Performance appraisal is a set of process for esta#lishin! shared understandin!

a#out what it is to #e achieved and mana!in! developin! people in a way which

increase the pro#a#ility that it will #e achieved in the short and lon!er term.

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P'!ose of e!fo!man%e

1. To !ive the employee the opportunity to discuss performance and performance

standards re!ularly with supervisors.

. To provider the supervisors means of identifyin! the stren!th and weakness of

an employee performance

2. desi!ned to helps an employee improve performance

3. to provide a #asic for salary recommendations

4. to help determine promotions and transfer

5. To reduce !rievances.

Benefi&s of e!fo!man%e a!aisa"

To &he a!aisa"

1. 6reater clarity of the results standards e7pected of them

. Accurate and constructive feed#ack on past performance

2. 6reater knowled!e of stren!ths and weakness

3. An opportunity to communicate upwards views and feelin!s a#out the &o# and

the utilization of the appraisal skills in the &o#.

4. /iscussion of career prospects.

To &he a!aise!

1. The opportunity to measure and identify trend in performance of staff

. Better understandin! of staff their fears an7iety hopes and aspirations

2. Enhanced modification of staff #y focusin! attention on term as individuals

3. /evelopin! staff performance

4. $dentifyin! opportunity for rotatin! the duties of staff.

The o!(ani)a&ion

1. $mproved communication8

. 6enerally enhanced motivation of staff

2. The !reater harmonization of o#&ectives

*+ $mproved corporate performance.

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Me&hos of e!fo!man%e a!aisa"

9ith the evaluation and development of appraisal system a num#er of methods

or techniques of performance appraisal have developed

Me&hos of e!fo!man%e a!aisa"

T!ai&iona" me&ho Moe!n me&ho

1. 6raphic ratin! scales 1. Behaviorally ratin! scales

. +ankin! methods . Assessment :entre

2. Pried comparison method 2. )uman resources accountin!

3. orced comparison method3. 'ana!ement #y o#&ectives

4. :heck list method 4. Psycholo!ical appraisal

a; (imple check list

#; 9ei!hted check list

c; :ritical incident method

5. Essay or free from appraisal


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Mana(emen& -. O-/e%&i0es !o%ess#

In &his !o%ess fi0e -asi% s&es ha0e &o -e fo""oe

(et or!anization !oals

>o# !oal settin!

Performance reviews

(et check posts

eed #ack

Benefi&s of mana(emen& -. o-/e%&i0es !o(!am#

1. 'ana!ement #y o#&ectives helps and increase employee. 'ana!ers are most likely to compete with themselves with other man!ers.

2. 'ana!ement #y o#&ectives results in a ,mean ends- chain

3. 'ana!ement #y o#&ectives reduces role conflict and am#i!uity.

4. 'ana!ement #y o#&ectives identified pro#lems #etter and early

5. 'ana!ement #y o#&ectives identifies performance deficiencies


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competitive rates. $ndia has all the four varieties of silk namely mul#erry tassel era and

me!a. $t is however disheartenin! to note that we have not yet #een a#le to fully e7ploit

this advanta!e and make our presents felt on the international scene more prominently

than at present. or this one has to clearly understand the stren!ths and weakness of

different se!ments of this sector.

The stren!th of this industry lies in its wide #ase" the sustainin! market demand

pull especially from the $ndian handloom weavin! sector" the infrastructure created #y

the national sericulture pro&ect and the research and trainin! capa#ilities.

Co!o!a&i)a&ion of Inian si"2 in's&!.

The $ndian silk industry #y and lar!e remains in the a!e old cotta!e industry

sector. $f #i! thin!s are to happen in the $ndian silk sector we should attract the

industrial !roups for !reater participation in settin! up or!anized silk production in

modern lines. industrial !roups could take any or all of the silk sectors like lar!e scale

mul#erry plantation "!iant rearin! houses mechanized reelin! filatures" modern silk

weavin! mills state% of% the art dyein! and processin! houses and also silk e7ports in a

#i! way.The e7perimental pilot pro&ects started at few pockets is of any indi!nation

there is !reater potential in lar!e scale corporatization of silk industry in $ndia.

CHAPTER 3

REVIE4 OF LITERATURE

Pe!fo!man%e a!aisa"

Performance Appraisal is the process throu!h which an individual employee*s

#ehavior and accomplishments for a fi7ed time period are measured and

evaluated.Performance Appraisal is a systematic and o#&ective way of &ud!in! the

relative worth or a#ility of an employee in performin! his her task. Performance

Appraisal helps to identify those who are performin! their assi!ned task well and reason

for such recordin! information a#out a person that is neededC

1. or the efficient mana!ement of #usiness or or!anization.

. By the mana!er to help to improve the worker*s performance.

2. By the worker to assist him to evaluate his own performance.

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Performance appraisal is systematic way of &ud!in! the relative importance of an

employee in performin! hisher task. $t is undertaken for the variety of purpose such as

to consider employees for salary increases" promotions" transfer and termination of

services" to determine trainin! and development needs of the employee" and to esta#lish

#asis for research and reference relatin! to employee matters.

Denha!& 516617C defines performance appraisal as a specific evaluation with respect to

an individual*s pro!ress in completin! specified tasks.

De0!ies, Mo!!ison, Sh'""man an 8e!"a%h 516917C define performance appraisal as a

process #y which an or!anization measures and evaluates an individual employee*s

#ehavior and accomplishments for a finite period.

Mo'"e! 53::17C states that performance appraisals are valued for definin! e7pectations

and measurin! the e7tent to which e7pectations are met. (he !oes on to state that

appraisals can make clear to employees where they are havin! success and where they

need to improve performance. 'oulder indicates that appraisals are useful in settin!

!oals and in fosterin! improved communications amon! work !roups and #etween

employees and supervisors.

Before the 1D50*s" performance evaluations were desi!ned primarily as tools for the

or!anization to use in controllin! employees Eichel and Bender" 1D=1;. Eichel and

Bender !o on to state that past performance was used to !uide or &ustify mana!ement*s

actions in dealin! with the employee. At the time" accordin! to these authors"

performance appraisal provided the #asis for salary" retention" dischar!e" or promotional

decisions.

Fver the past quarter century" the purpose of performance appraisal has shifted from

tools supportin! the activities of mana!ement to an increasin! trend towards personnel

development Eichel and Bender"1D=3;.

V!oom 5166:7C states that formal performance appraisal plans can #e desi!ned to meet

the followin! key needsC a; the or!anizationG #; the supervisorG and c; the employee.

)e stresses the need for effective evaluation as it can effectively serve these critical

areas.

ICMA 53::;7C states that almost all employees are ea!er to know how well they are

doin! in their &o#s" #ut many dread the meetin!s in which their performance is to #e

discussed.

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CHAPTER

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