A Researchon An assessment of employees (HCL) satisfaction of the performance appraisal effectiveness By:Jyoti Sharma|Supraneet Arya|Vivek Singh|Atul Gupta PGDM I Year (2009-11) Ajay Kumar Garg Institute of Management, Ghaziabad.

An Overviewy Introduction y Statement of the study y Objective of the study y Literature review y Methods of Performance Appraisal y Significance of Performance Appraisal y Research Methodology y Company (HCL) Profile y Results y Findings y Recommendations y Conclusion y Limitations y Scope of the study

Introduction

Statement of the studyFrom the point of view of the organization, performance appraisal serves the purpose of:y Providing information about human resources and their

development; y Measuring the efficiency with which human resources are being used and improved; y Providing compensation packages to employees; and y Maintaining organizational control.

Objectives of the studyA. PRIMARY OBJECTIVES B.

SECONDARY OBJECTIVES

Literature Review It is our individual performances, no matter how humble our place in life may be, that will in the long determine how well ordered the world may become. - Paul C. Packer

Methods of Performance Appraisaly Past Oriented Methods:1. Rating Scales 2. Checklist 3. Forced Choice Method 4. Forced Distribution Method 5. Critical Incidents Method 6. Behaviorally Anchored Rating Scales 7. Field Review Method 8. Performance Tests & Observations 9.Confidential Records 10. Essay Method 11. Cost Accounting Method 12. Comparative Evaluation Method

Methods of Performance Appraisal(Cont..)y Future Oriented Method1. 2. 3. 4.

Management By Objectives Psychological Appraisals Assessment Centers 360-Degree Feedback

Significance of Performance Appraisal To effect promotion based on competence and performance. To confirm the services of probationary employees upon their

completing the probationary period satisfactorily. To assess the training and development needs of employees. To decide upon a pay rise where regular pay scales have not been fixed. To let the employees know where they stand the insofar as their performance is concerned and to assist the constructive criticism and guidance for the purpose of their development. To improve communication, performance appraisal provides a format for dialogue between the superior and the subordinate, and improves understanding of personal goals and concerns. Finally, performance appraisal can be used to determine whether HR programs such as selection, training and transfers have been effective.

Research Methodologyy The data source: Primary as well as Secondary y The research approach: Survey Method y The research instrument: Questionnaire y The respondents: The HR Manager & Employees of HCL

Technologies.

Company ProfileEmployees First, Customer Second (EFCS): New philosophy of HCL

Best Practices @HCL Technologies

Best Practices (Cont..)

Best Practices (Cont..)

Best Practices (Cont..)

Best Practices (Cont..)

Results of the Study1.

Timing of Appraisals

Monthly Quarterly Half Yearly Annual Anytime

2. Who conducts the Performance Appraisal?Performance Appraisal

Immediate Supervisor Peer Appaisal Rating Committees Self Rating Appraisal by sub-ordinates

3. Do you know what exactly is expected from you at work?

70 60 50 40 30 20 10 0 Strongly Disaree Disagree Neutral Agree Strongly Agree

No. of Responses Percent Of Responses

4. Are you satisfied with the appraisal system?40 35

30

25 No. of Responses Percent Of Responses 15

20

10

5 0 Strongly Disaree Disagree Neutral Agree Strongly Agree

5. Are you aware of performance ratings?70 60 50 40 30 20 10 0 Strongly Disaree Disagree Neutral Agree Strongly Agree

No. of Responses Percent Of Responses

6. Do you think you should be given an opportunity to rate your own performance?60

50

40 No. of Responses Percent Of Responses 20

30

10

0 Strongly Disaree Disagree Neutral Agree Strongly Agree

7. Are you given a chance to your own performance?

70 60 50 40 No. of Responses 30 Percent Of Responses

20

10

0 Strongly Disaree Disagree Neutral Agree Strongly Agree

8. Does the credibility of appraiser affect the performance appraisal system?50 45 40 35 30 25 20 15 10 5 0 Strongly Disaree Disagree Neutral Agree Strongly Agree No. of Responses Percent Of Responses

9. Is there a complaint channel for the employees who are

dissatisfied with the performance appraisal system?

70 60 50 40 30 20 10 0 Strongly Disaree Disagree Neutral Agree Strongly Agree

No. of Responses Percent Of Responses

10. Are the standards on the basis of which the performance appraisal is carried out communicated to the employees before hand?

45 40 35 30 25 20 15 10 5 0 Strongly Disaree Disagree Neutral Agree Strongly Agree No. of Responses Percent Of Responses

11. Is the performance appraisal successful in giving a clear understanding of the appraisees job to both appraiser and appraisee?

45 40 35 30 25 20 15 10 5 0 Strongly Disaree Disagree Neutral Agree Strongly Agree No. of Responses Percent Of Responses

12. Are the objectives of Appraisal system clear to you?60

50

40 No. of Responses Percent Of Responses 20

30

10

0 Strongly Disaree Disagree Neutral Agree Strongly Agree

14. Does the appraisal system provide a good communication between the top-management plans and business goals to staff below?

40 35 30 25 20 15 10 5 0 Strongly Disaree Disagree Neutral Agree Strongly Agree No. of Responses Percent Of Responses

14. Do you want your comments and suggestions to be taken into consideration during appraisal?60

50

40 No. of esponses Percent Of esponses 20

30

10

0 Strongly Disaree Disagree Neutral Agree Strongly Agree

15. Is there a post appraisal interview conducted?

40 35 30 25 20 15 10 5 0 Strongly Disaree Disagree Neutral Agree Strongly Agree No. of Responses Percent Of Responses

Overall Score of the Survey Questions

80

70 60 50 40 30 Mean Value Percentile for Mean Choice

20

10

0 Overall Score

Findings

Recommendations Performance appraisal should not be perceived just as a regular activity but

its importance should be recognized and communicated down the line to all the employees.

There should be review of job analysis, job design and work environment

based on the performance appraisal.

It should bring more clarity to the goal and vision of the organization. It should provide more empowerment to the employees. New methods of appraisal should be adopted so that both appraiser and

appraisee take interest in the appraisal process.

The employees who have excellent performance should be used as a mentor

for other employees who would motivate others to perform better.

Employees should be given feedback regarding their appraisal. This will

help them to improve on their weak areas. Financial and non-financial incentives should be linked to the annual appraisal system so that employees would be motivated to perform better. The frequency of training program for the appraiser should be increased and these sessions should be made interactive. The awareness sessions for the employees/appraisees should be made more interactive and the views and opinion of the appraisees regarding appraisal should be given due consideration. Assistance should be sought from specialists for framing a proper appraisal system that suits the organization climate. Combining the different methods of appraisal can minimize the element of biasness in an appraisal. Like the rating method combined with assessment center method would give an evidence of poor/unfavorable or outstanding behavior of the appraisee, if any

Limitations of the studyy Although all attempts were made to make this an objective study, biases y

y y y y

on the part of the respondent might have resulted in some subjectivity. This being the maiden experience of the researcher of conducting study such as this, the possibility of better results, using deeper statistical techniques in analyzing and interpreting data not be ruled out. Getting the views an opinion of the interviewee (HR Manager) was a difficult task. The sample sizes collected were not large i.e., study is limited to 50 individuals. Managers were reluctant in giving out too many details fearing exposure of company secrets. Was not able to get adequate time with the Mr. Kallol Chakraborty, HR, HCL Technologies Ltd.

Conclusion

Thank You!