performance appraisal at cci.docx
TRANSCRIPT
Bharati Vidyapeeth’s
Institute of Management Studies & Research
A
PROJECT REPORT
ON
PERFORMANCE APPRAISAL IN CCI
A Project Report submitted inPartial fulfillment of the Award of Degree of
POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT
ByRASHMI VAISHYA
Roll No- 14Batch: 2013 -15
Under the guidance ofProf. Raman K. Saily
For The Study atTHE COTTON CORPORATION OF INDIA, BELAPUR
ACKNOWLEDGEMENTS
It gives me immense pleasure to present this project report on “PERFORMANCE APPRAISAL IN CCI”
I am happy to take this opportunity to express my gratitude to those who have been helpful to me in completing this project report.
I would like to thank Dr. D.Y Patil, Director of our institute, for providing me this opportunity to complete this project.
I would also like to thank my project guide Prof. Raman K. Saily, for continuous mentoring throughout the journey of this project.
I also owe special thanks to Mr. Biswarup Roy (Head-Business Unit) and Ms. Diwali Kanbi (HRD Dept) who has helped me in making this project a successful one.
I also take this opportunity to express my deep regards and gratitude to all the respondents who gave their valuable inputs which helped us in compiling this project.
DECLARATION
I, RASHMI VAISHYA student of Bharati Vidyapeeth’s Institute of Management Studies and Research (BVIMSR) affiliated to AICTE; hereby declare that this project report is a result culmination of our sincere efforts.
I declare that this submitted work is done solely by me and to the best of my knowledge. I also declare that all the information from various secondary sources has been duly acknowledged in this project report.
The theoretical part is gathered from various Human Resource reference books and websites whose quotations have been mentioned in bibliography.
DATE:
INDEX
Chapter ContentsPage No.
1 Executive Summary 1
2
1. Introduction 4
2. Objective of the Study 5
3. Scope of the project 5
4. Limitations of the Project 5
3 Company Profile 7
4 Theoretical Background 14
5 Literature Review 21
6 Performance Appraisal At CCI 32
7 Research Methodology 35
8 Data Analysis & Interpretation 38
9 Findings 49
10 Conclusion 51
11 Suggestions/Recommendations 53
12 Reference 60
13 Annexure 62
CHAPTER 1
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Managing human resources in today’s dynamic environment is becoming more and more
complex as well as important. Recognition of people as a valuable resource in the organization has led
to increases trends in employee maintenance, job security, etc
My project report deals with “Performance Appraisal” as carried out at Cotton Corporation Of
India Ltd. In this report I have studied & evaluated the performance appraisal process as it is carried
out in the company.
The first section of my report deals with a detailed company profile. It includes the
company’s history, its activities and operations, organizational structure, etc.
The second section deals with performance appraisal. In this section I have given a brief
conceptual explanation to performance appraisal. It contains the definition, process, types 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 Cotton Corporation Of India Ltd. This section contains my findings,
conclusions, suggestions and feedback.
CHAPTER 2
2.1 INTRODUCTION2.2 OBJECTIVES2.3 SCOPE2.4 LIMITATION
INTRODUCTION
The project is the part of the academic year of PGDBM. The project report was prepared as the part of the winter project which is included in the academics of semester IV. The project topic is Performance Appraisal in CCI Ltd under the guidance of Ms. Diwali Kanbi and Mr. A.K. Kutty.
The Cotton Corporation of India Ltd (CCI) was set up in 1970 by GOI as a
public sector unit to deal in marketing of cotton. In 1985, CCI was appointed as
the sole agency for undertaking price support operations. Until 2003, CCI
operated in all the cotton growing states other than Maharashtra. Since the cotton
season of 2003, CCI has been allowed to purchase raw cotton in Maharashtra as
well. The corporate is doing marketing operation through a network of 19
branches offices located in different cotton growing states.
I have taken this opportunity at CCI and tried to understand the performance appraisal system being followed in the organization and also to know the culture being followed and environment maintained there.
OBJECTIVES
To study the performance appraisal system followed in CCI.
To study the employees attitude towards the present appraisal system.
To understand the shortcoming of present appraisal system.
To propose the new technique for appraisal based on the study conducted.
SCOPE
Study on Performance appraisal system in the headquarter of CCI.
Performance appraisal forms vary from designations and there are 14 different forms.
From such diversified forms only Code II was studies that Deputy Manager and
Assistance Manager.
Scope of the study can be extended to other branches of Cotton Corporation of India
Ltd.
LIMITATIONS
Research was limited to the headquarter only
From 14 codes of PA forms only Code II was considered.
Only Deputy Manager and Assistance Managers were focused as they have common
PA form i.e. Code II
Availability of employees and time was the main constraint.
Limited exposure to the organization.
Limited informal talk with the executive and employees of the organization.
Respondent were unwilling and hesitating on providing information as they had fear of
information leaking which was not so.
THE COTTON CORPORATION OF INDIA LTD
CHAPTER 3
COMPANY PROFILE
COMPANY PROFILE:
Name :- Cotton Corporation of India (CCI)
Type :- Public-sector undertaking
Industry :- Textiles
Founded :- 1970
Headquarters :- Mumbai, CBD Belapur
Key people :- B.K. Mishra, Chairman cum &Managing director
Employees :- 158 in head quarter
Revenue :- Rs 9391.27 crores (2011)
Website: - www.cotcorp.gov.in
MISSION OF THE CCI
Helping cotton farmers by ensuring them remunerative price for their produce and thereby
protect their interest.
VISION OF THE CCI
(a) Rendering help to the cotton farmers by way of social services and
(b) Endeavoring to attain commercial gain by sustained growth of the Corporation.
CCI Operations cover all the cotton growing states in the country comprising of:
Punjab, Haryana and Rajasthan in Northern Zone.
Gujarat, Maharashtra and Madhya Pradesh in Central Zone and Andhra Pradesh.
Karnataka, Orissa & Tamil Nadu in Southern Zone.
The Cotton Corporation of India Ltd (CCI) was set up in 1970 by GOI as a public sector unit to
deal in marketing of cotton. In 1985, CCI was appointed as the sole agency for undertaking
price support operations. Until 2003, CCI operated in all the cotton growing states other than
Maharashtra. Since the cotton season of 2003, CCI has been allowed to purchase raw cotton in
Maharashtra as well.
CCI deals in procurement, trade and export of cotton in different regions of India.
Corporation is having warehousing complex at Kalamboli (Maharashtra) constructed for
storage of bales meant for export purpose.
CCI is having 225 market yards in country
The corporate is doing marketing operation through a network of 19 branches offices located
in different cotton growing states.
DEVELOPMENTAL ACTIVITIES
Integrated Cotton Cultivation (Contract Farming)
Apart from low yield per hectare, the quality of cotton produced in the country is
comparatively more contaminated. While the interest of cotton farmers suffer due to higher
cost of production and low productivity.
In order to increase production and productivity of cotton thereby increasing the per hectare of
the cotton farmers as also to produce quality cotton to suit the needs of the textile industry, the
momentum on integrated cotton cultivation is gaining ground through linkages amongst all
concerned. The farmers are expected to form associations for contract farming and textile mills
and other coordinating agencies are entrusted all the extension services including various
inputs and marketing support for such cotton produce. The scheme in its extended form benefit
both the cotton growers through low cost of production and higher productivity and the textile
mills with availability of quality cotton comparable with international standards.
Technology Mission on Cotton
Technology Mission on Cotton was launched in February'2000 by GOI with the objective to
bring about tangible improvements in the productivity and quality of cotton in the country. It
envisages development of all aspects of cotton from research to production, marketing and
processing, in order to meet the domestic and export requirements of the country.
Technology Mission on Cotton comprises of 4 Mini-Missions:
Mini-Mission I (Research) has ICAR as the nodal agency,
Mini-Mission II (Transfer of Technology) has the department of Agriculture and Co-operation
as the nodal agency,
Mini-Mission III (Development of Market Infrastructure) and
Mini-Mission IV (Modernization/Up gradation of G&P factories) are administered by the
Ministry of Textiles through CCI.
CCI ACHIEVEMENTS
Serving Textile Industry by playing a leadership role of a dependable supplier of quality cotton on most
competitive terms. It has earned a reputation for maintaining quality, adhering to sale terms and for
delivery schedules both in domestic as well as international market.
To supply cotton to the textile industry at competitive prices, CCI keeps on selling cotton on day-to-day
basis and does not speculate on prices. CCI also believe in transparent working and fair trade practices.
They also strike a balance between offering fair price to cotton growers and excellent pre and post sales
services to cotton buyers.
CCI has been championing the interest of Indian cotton farmers for more than three decades and is the
single largest cotton trading company in the country.
CCI has achieved all targets of annual programs for use of official’s languages.
CCI has been honored with first prize for Indira Gandhi Raj Bhasha Shield for 19time.
Serving the cotton farmers of the country in realizing fair price of their produce, by operating more than
258-300 procurement centers on All-India basis. CCI remains present in the market yards from day one
of the kapas arrivals so as to ensure fair competition at the time of auction.
OPERATIONS NETWORK
CCI buys raw cotton directly from the cotton farmers through the aegis of Agricultural
Produce Market Committees (APMCs) conducted auctions in the APMC yards. CCI officials
are present in such markets from the day one of the arrivals till the same continues. All such
purchases by CCI are in open competition with other traders and State agencies participating in
the auctions and the main objectives remain to ensure remunerative prices to the cotton farmers
/on the one hand and procure standard quality raw cotton on the other hand.
At present, CCI is operating in all cotton growing States 258-300 procurement centers under
the control of respective Branch Office in each State. Apart from 15 Branch Offices, there are
4 Sales Branches to cater to the needs of the textile mills for sale and supply of quality cotton
as also for rendering the necessary after sales services.
ORGANIZATIONAL CHART
CHAPTER 4
THEORETICAL BACKGROUNDOF
PERFORMANCE APPRAISAL
PERFORMANCE APPRAISAL
In the business world investment is made in machinery, equipment and services. Quite
naturally time and money is spent ensuring that they provide what their suppliers claim. In other
words the performance is constantly appraised against the results expected.
Performance
Performance is synonymous with behavior; it is what people actually do. Performance includes those
actions that are relevant to the organizational growth and can be measured in terms of each
individual’s proficiency (level of contribution).
Performance Appraisal
Performance Appraisal is the systematic evaluation of the performance of employees and to understand
the abilities of a person for further growth and development.
Performance Management System
It is a process that consolidates goal setting, performance appraisal, development into a single common
system, the aim of which is to ensure that the employee’s performance is supporting the company’s
strategic aims.
IMPORTANCE OF PERFORMANCE APPRAISAL
Performance Feedback
Most employees are very interested in knowing how well they are doing at present and how
they can do better in future. They want this information to improve their performance in order
to get promotions and merit pay. Proper performance feedback can improve the employee’s
future performance. It also gives him satisfaction and motivation.
Employee training and development decision
Performance appraisal information is used to find out whether an employee requires additional
training and development. Deficiencies in performance may be due to inadequate knowledge
or skill.
Promotion
It is the way of finding out which employee should be given a promotion. It helps to superiors
to chalk out the promotion programmers for efficient employee. In this regards, inefficient
workers can be dismissed or demoted in case.
Compensation decision
It can be used to compensate the employees by increasing their pay and other incentives. This
is true in case of managerial jobs and also in the case of employees in non- unionized
organizations. The better performance is rewarded with merit pay.
Career development
Performance appraisal also enables managers to coach and counsel employees in their career
development.
Motivation
Performance appraisal serves as a motivation tool. Through evaluating performance of
employees, a person’s efficiency can be determined if targets are achieved. This very well
motivates a person for better job and helps him to improve his performance in the future.
CHARACTERISTICS
It is the systematic examination of the strengths 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 an employee.
PROCESS OF PERFORMANCE APPRAISAL:
1) Establishing performance standards
2) Communicating the Standards
3) Measuring Performance
4) Comparing the actual with the standards
5) Discussing the appraisal
6) Taking Corrective Action
METHODS OF PERFORMANCE APPRAISAL
TRADITIONAL METHOD OF PERFORMANCE APPRAISAL:
ESSAY APPRAISAL
In its simplest form, this technique asks the rater to write a paragraph or more covering an individual's
strengths, weaknesses, potential, and so on. In most selection situations, particularly those involving
professional, sales, or managerial positions, essay appraisals from former employers, teachers, or
associates carry significant weight.
GRAPHIC RATING SCALE
This technique may not yield the depth of an essay appraisal, but it is more consistent and reliable.
Typically, a graphic scale assesses a person on the quality and quantity of his work (is he outstanding,
above average, average, or unsatisfactory?) and on a variety of other factors that vary with the job but
usually include personal traits like reliability and cooperation. It may also include specific performance
items like oral and written communication.
FIELD REVIEW
The field review is one of several techniques for doing this. A member of the personnel or central
administrative staff meets with small groups of raters from each supervisory unit and goes over each
employee's rating with them to (a) identify areas of inter-rater disagreement, (b) help the group arrive at
a consensus, and (c) determine that each rater conceives the standards similarly.
FORCED-CHOICE RATING
Like the field review, this technique was developed to reduce bias and establish objective standards of
comparison between individuals, but it does not involve the intervention of a third party.
RANKING METHODS
For comparative purposes, particularly when it is necessary to compare people who work for different
supervisors, individual statements, ratings, or appraisal forms are not particularly useful. Instead, it is
necessary to recognize that comparisons involve an overall subjective judgment to which a host of
additional facts and impressions must somehow be added. There is no single form or way to do this.
CONFIDENTIAL REPORT METHOD
In this method, the superior appraises the performance of his subordinates based on his observations,
judgment, & institutions. The superiors keep his judgments and report confidentially. In other
words, superior does not allow the employee to know the report and his performance. The superior
writes the report about his subordinates strength, weakness, intelligence, attitude to work,
sincerity, commitment, punctuality, attendance, conduct, character, friendliness etc.
Most of the public sector organization still follows this method in appraising the employees
performance.
MODERN METHOD OF PERFORMANCE APPRAISAL:
ASSESSMENT CENTERS: The purpose of this method is to test candidates in an a social
situation, using of assessors and variety of procedures. The feature of the assessment centre
method is job related simulations. These simulations involve characteristics that manager feel
are the important to the job success. The evaluators observe participants as they perform
activities commonly found in these higher level jobs.
360 DEGREE FEEDBACK: The 360 method provides each employee the opportunity to
receive performance feedback from his or her supervisor, peers, staff members, co-workers
and customers.360 degree feedback is a tool that incorporates feedback from all who observe
and are affected by the performance of a candidate.
BEHAVIORALLY ANCHORED RATING SCALES (BARS): This is a new appraisal
technique which has recently been developed. Its supports claim that it provides better, more
equitable appraisals as compared to other techniques. Incident is retained if some percentage
(usually 50 to 80%) of this group assigns it to the cluster as the previous group did.
MANAGEMENT BY OBJECTIVES: It is a process whereby the superior and subordinates
of an organization jointly identify its common goals, define each individuals major areas of
responsibility in terms of result expected from them and use these measures as guides for
operating the units and assessing the contribution of each of its member.
180 DEGREE FEEDBACK: Here two people are involved in the feedback process, one is
the employee himself and his immediate boss.
The employee share his work experiences including good and bad with hr people, and the
boss gives the feedback of the skills and attitude the employee carry and then the data
collected is matched with the competency norms of the organization and a feedback is
prepared about the particular employee and with those feedback them management takes
further actions for better performance of that employee.
This performance appraisal from is used in all big and small scale industries and
organizations.
Difference between Traditional and Modern (Systems) approach to Appraisals
Categories Traditional Appraisals Modern, Systems Appraisals
Guiding Values Individualistic, Control
oriented, Documentary
Systematic, Developmental,
Problem solving
Leadership Styles Directional, Evaluative Facilitative, Coaching
Frequency Occasional Frequent
Formalities High Low
Rewards Individualistic Grouped, Organizational
NEED OF PERFORMANCE APPRAISAL
Performance appraisal is needed in order to:
Provide information about the performance ranks. Decision regarding salary fixation,
confirmation, promotion, transfer and demotion are taken based on performance.
Provide feedback information about level of achievement behavior of the subordinate. This
information helps to review the performance of the subordinates, rectifying performance
deficiencies and to set new standard of work.
Provide information which helps to counsel the subordinate.
Provide information to diagnose deficiency in the employee regarding skill, knowledge,
determine training and development needs and to prescribe the means for employee growth
provides information for correcting placement.
CHAPTER 5
LITERATURE REVIEW
LITERATURE REVIEW
So What Would An Ideal Performance Appraisal Look Like? Jack N. Kondrasuk University of Portland
RECENT SUGGESTIONS FOR IMPROVEMENT OF PA Academic scholars and industrial practitioners have suggested many aspects to
change, add, or tweak. Authors have recommended trying to produce more measurable goals to begin with, give more frequent feedback on performance to the operating employee, reduce biases in appraising employees, better train appraisers in appraising employee job performance achievements, and periodically and continually auditing/reviewing the effectiveness of the PA system. Grote (2010) and others have stated that individual development/improvement plans should also be employed. Grote adds that there should be more responsibility placed on the employee such as being responsible for seeking coaching and feedback and doing a self-evaluation at the end of the period.
A strong emphasis is being placed on better training of those involved in the PA system. All managers who currently perform performance appraisals, or any who would potentially do so, should be required to participate in PA training. A trained HR specialist, with particular training in the performance Journal of Applied Business and Economics vol. 12(1) 2011 65 appraisal field, should conduct the training programs. The HR specialist can better convey the corporation's culture and values as well as the legal aspects of PA throughout the training. The training can tackle the major aspects of language use, objectivity, legal aspects, psychological concerns, evaluative criteria and listening skills. New employees should also be trained in PA as part of their corporate orientation. Present employees should go through refresher training annually to brush up or learn new and improved elements of the PA process. This learning should never stop. Nor should we stop attempts to improve the performance appraisal in general.
ENHANCEMENTS TO THE IDEAL PA
To have an “Ideal Performance Appraisal System” it is assumed that many present performance appraisal (PA) system components should be retained in general. The components to retain are 1) establishing expectations for employee performance, 2) allowing the employee the resources to perform the job, 3) appraising that employee’s job performance, 4) reviewing the appraisal process, and 5) continuing the cycle of steps 1-4. However, there are six additional aspects where important changes could be made to produce a more “ideal” performance appraisal system. Those aspects are: 1) Performing the recommended changes recently recommended, 2) clarifying the goals and role of
performance appraisal, 3) focusing on both results and behaviors, 4) adding an appraisal category, 5) properly timing the PA process, and 6) involving more constituencies in the process.
Perform the Recommended Changes Recently Recommended
Recent articles recommend improvements to conduct PA. There are changes recommended in each area. For instance, regarding who does the measuring--the evaluator, it has often been recommended that the appraisers be trained in the process of appraisal. This way the manager can have more motivation and more skills to do a better job of appraising her subordinates’ job performances. With the greater use of computerization, it is more likely to get input from additional sources (e. g. 360-degree feedback) for a more well-rounded and accurate view of the appraisee’s job performance.
Regarding the process of the PA system, assess the evaluatee’s job performance on a more frequent basis—continuously if possible. This could include daily progress reports/feedback sessions between supervisor and subordinate(s). Have the performance appraisals flow through the total organization including, and having support from, the top management of the organization. Make the PA system clear and relatively easy to perform so appraisers are not overwhelmed and over-extended. Make sure that audits of the PA system are conducted—that the system is reviewed frequently to spot problems and to make improvements. Make sure that users of the PA system are rewarded for properly/accurately conducting the PA system and applying the results. It has also been recommended that all PA’s be conducted at the same time in the calendar year—not on each employee’s anniversary date—to be more consistent in standards used for judgment. Also have specialists from the human resource department (HR) review the PA results for the same reason and to pick up biases (Staff of Employee Recruitment & Retention, 2010). Responses to different achievement levels should also be relatively standardized. For example, meeting standards gets a 3 % raise while exceeding standards obtains a 6 % pay increase.
Regarding what is measured and how. Thomas and Bretz (1994) suggested that managers and subordinates both be more involved in the development of the general PA system/process as well as the PA forms used. They also suggested that there should be more rewards for appropriately using the PA system. Strive for clear, specific, measurable expectations. Use techniques as free from biases as possible. Use evidence-based techniques that are shown by quality research to be valid and reliable. In fact, some, like Jafari, Bourouni, & Amiri (2009), have even developed mathematical approaches to comparing and selecting the best PA technique to use in given circumstances. Use techniques/approaches that are cost effective and not repetitive.
Many have recommended that there be more training of appraisers on how to appraise and how to use the results. Have PA manuals (preferably online) available for further review and as-needed information. 66 Journal of Applied Business and Economics vol. 12(1) 2011 But as with any other area of PA, the ideal PA system must be practical in the sense that it is easy to use, understand, and administer. It must be useful for making decisions, and it must be cost effective.
Clarifying the Goals of Performance Appraisal
As stated previously, the ideal PA system could refer to a specific instrument, the PA interview, a PA system, or performance management. We have chosen to focus on PA as a system as described above. It is very important to realize that the ideal PA system is a format (process) and not a form (specific instrument).
We need to clarify the purpose of the PA system. Many years ago it was asserted that organizations typically try to concurrently achieve two goals in their PA’s which produces a conflict and less than ideal results. Organizations seek to use the PA to a) make administrative decisions (such as whether to fire/retain/promote, the level of pay increase, training needs, etc.) and b) improve employee performance (by learning the shortcomings of the employee and seek to help the employee improve in those areas). The first is a judicial process where the latter is a counseling process. The appraiser must act as a judge in the former and a guide/counselor in the latter. It is very difficult to be a judge and counselor at the same time. On the other side of the desk, the appraisee tends to selectively hide potentially damaging information that could hurt his being judged highly but tends to openly state weaknesses that could be rectified when the appraiser is acting as a counselor. So there are conflicts within both the appraiser and the appraisee in a typical PA. The proposed best way to deal with these conflicts is to clearly separate the two goals (administrative and developmental) so that both the appraisee and the appraiser know when each purpose is occurring. It should be clear when the appraiser is evaluating the evaluatee on administrative standards (tied to organization goals) or on developmental goals (tied to what the employee personally wants to achieve in that work setting). This separation also has implications for the training of appraisers; they should be trained in how to be a good counselor as well as a good evaluator.
Focus on Both Results and Behaviors Appraisals
As some have previously stated, if we assess both objective aspects like results and subjective aspects like attitudes, we get a fuller picture of the employee’s performance. Likewise, if we assess both specific end results and also the process/behaviors that led to the results, we get a fuller picture of the employee’s performance. But let’s take that another step further. If we go back to the basic goals of the PA, we start with goals of making administrative decisions and improving employee performance. Now let’s separate those two goals and tie them into the results and process dimensions. If our goal is to make better
administrative decisions (e.g. regarding employee retention and promotion, compensation, training), focus on objective appraisals like performance results. If the goal is to develop the employee and improve that employee’s job performance, focus on the subjective/process elements. Administrative decisions, such as employee termination, should and often are legally required to be based on objective data—not subjective opinions. The number of items produced or sold, the revenues or profits obtained, even the number of hours worked to achieve the end result are all objective results and can be defended to the employee or the judge/jury in a court setting. However, when we talk about improving an employee’s performance, we tend to take the objective results as givens and focus on what the employee could do differently; the employee must behave differently to achieve different (better) results. Doing the same thing (behaviors) should get the same results (less than perfect performance results). So to improve job performance, the behaviors (and their motivation, attitude, etc.) should be changed. The employee should do something differently/behave better to get better objective results.
Adding an Appraisal Category
Changing job behaviors may not always be the most efficacious move to make to increase job performance. We assume that if the employee changes/improves his job performance behaviors, that his job performance results will improve. However, that assumption misses one very important ingredient of job performance—the situation. If the economy deteriorates or the salesperson is suddenly assigned a territory with a dearth of prospects or the engineer’s computer breaks down or the store check-out clerk Journal of Applied Business and Economics vol. 12(1) 2011 67 has vastly fewer customers, the job performance will diminish in all cases even if the employee adds job skills and increases her motivation to perform better. Consequently, the ideal PA must measure the situation—the opportunity to perform and the organization’s support to perform well.
As to how to assess the appraisee’s situation, one could look at the instrument to assess the situation in Fiedler’s (1977) contingency theory of leadership. His “situation favorableness” assessment instrument is not necessarily a panacea to measure the situation for performance appraisals, but it can be a starting point for developing such an instrument.
Timing and Arrangement of the Process
An important aspect in developing the ideal PA system is the timing and arrangement of the elements in the process. The typical PA has been conducted by setting goals with each employee at the beginning of the year. This is laborious and also contentious as the typical conflicting appraiser PA goals of guiding and judging cause the skeptical appraisee to withhold information and resist suggestions or demands by the evaluator for the evaluate to list certain goals. Since the supervisor, at whatever level, tends to meet with each subordinate one at a time and each session averages about an hour, it is very time consuming. Considering that the supervisor has other responsibilities to attend to such as producing products or services for customers, PA interviews can be drawn out over lengthy periods of time. Likewise at the end of the period when the supervisor sits down with the evaluatee to discuss
the annual or semi-annual appraisal of the employee’s performance, that also takes a great deal of time and has even more subordinate resistance whenever the employee is judged for administrative decisions such as pay raises or promotions. After all, the average employee believes he is above average—or at least 75% of the employees believe they are above average. So how do we deal with these challenges?
To alleviate some of these aforementioned problems, it is recommended that the PA be split into two parts with quick decisions being made regarding administrative decisions at the front end in setting the standards for the position for the year (or other time period) and at the end where the PA is done based on achieving the standards based on objective (measurable) results) and subjective (process, behaviors) evaluations. This will reduce the “limbo” time between ending one period and starting another as well as increase the consistency of evaluations across appraises. Then take more time to establish the developmental goals at the beginning and the end-appraisal of individual goal achievement at the end of the period. The discussions of extent of goal achievement are to help the subordinate look at how to meet his personal goals (e.g. be rated “excellent”) for improving his work performance (e.g. sell more widgets) to achieve what he wants to on the job (e.g. be promoted to manager). The supervisor does not have to act as a nasty judge because all administrative decisions have already been made. The supervisor can focus on helping the self-motivated subordinate achieve her personal goals-- what she wants to accomplish—and increase the job performance of that employee. Focusing on employee goals encourages more involvement and engagement of the employee—thus increasing employee motivation to do the work on the job.
Involve More People in the Process
The more people that are involved, the more chances for better ideas and fewer mistakes—to a point. If more sources can make suggestions to improve the job standards and goals, they should be “better” standards and goals—more accurate, more challenging, more measurable, etc. Therefore, besides the supervisor and the subordinate(s) developing the goals, reviewing it by specialists in the organization’s human resource department (someone who knows the qualities required to write good objectives and who has a system-wide view of what needs to be done and what others are doing) should result in “better” employee goals. Also, at the other (performance appraisal) end, having input from others (basically a 360-degree appraisal) should give a more complete picture of the actual achievements in comparison with the expectations of what to accomplish (the goals, standards). Getting evaluations toward the standards and goals from the supervisor and self-evaluations from the subordinate are routine. Getting evaluations from interacting and knowledgeable peers and the subordinate’s subordinates have been recommended. It is also recommended to get assessments from the subordinate’s customers. 68 Journal of Applied Business and Economics vol. 12(1) 2011
Even with all of these recommendations for changes to improve the PA, it is still questionable if it will work in all situations for all people. Can the same, ideal PA be applied the same way in all situations? Will there still be problems with different appraisers,
evaluatees, jobs and levels of jobs, companies, sizes of organizations, types (public and private; local, regional, national, international), industries, geographical locations, countries, cultures? Many questions still remain unanswered. More will be known about that after these suggestions are applied and further research is conducted.
CONCLUSION
The ideal PA system is a format, not a form. It is a process that involves setting expectations (of the supervisor and subordinate), having the subordinate perform to achieve the expectations, of appraising and feeding back the results, and applying the results of the assessment in ways that benefit the organization, the supervisor, and the subordinate involved. Remember that the ideal PA system has two separate purposes (administrative and developmental)—which must be separated and not attempted to be achieved simultaneously. It appraises both standards applied to many as well as goals applied uniquely to each individual. Administrative decisions, based on standards and objective results, should be made first and quickly; Developmental aspects, based on individual goals, are made later and take more time. Both assess objective and subjective aspects of the employee’s job performance. The appraisal considers the appraisee’s skills and motivation within the context of a changing job situation to judge the appraisee’s job performance. The process and techniques applied are based on evidence-based management that applies valid and reliable approaches. Implementation of the ideal performance appraisal may not be feasible, or possible, for all organizations. But for those who can and do use the PA system proposed herein, it should be an improvement.
Characteristics of an Ideal Performance Management System
Expectations
Both employees and supervisors sometimes believe that they do not have enough input in the
company's performance management system and that the process is not objective or relevant.
To prevent this problem, encourage managers and employees to define the job expectations
themselves within the overall framework of company needs. Job expectations always should
be as specific and clear as possible. For example, a salesperson might be asked to exceed the
minimum quota by 10 percent each month, or a receptionist might be asked to answer every
phone call with a friendly, professional greeting. In an ideal system, every employee knows
exactly what her job is and what standards must be maintained.
Feedback
Ideal performance management systems include continuous feedback from management. If a
supervisor sets clear expectations but provides no further guidance until the next scheduled
performance review, employees may fall behind without knowing how to improve.
Supervisors must check how employees are doing on a frequent basis and offer suggestions
for improvement based on accurate information and realistic goals. For example, if a
salesperson falls below quota for the month, the supervisor should check on factors that may
be limiting his sales performance, such as not using the script consistently or not attempting
to overcome objections. Feedback should be geared toward improving performance rather
than criticizing the employee.
Assessment
The performance assessment should include objective and measurable factors but should not
be limited to the numbers. For instance, a customer service professional should be assessed
on factors such as percentage of calls resolved, length of average call and other metrics.
However, these measurable criteria may not capture everything the employee does for the
company. Other factors such as positive attitude, helpfulness toward coworkers or
willingness to work late during busy times also should be taken into consideration. An ideal
performance management system assesses not only the tangible contributions of the
employees, but also the intangible personal characteristics that may make a less-than-perfect
employee a valued member of the team.
WHICH PERFORMANCE APPRAISAL STYLE SUITS YOUR COMPANY?
Many appraisal types exist; from traditional to trendy, simple to complex, highly structured to
open-ended. Some of these types have been shown to work ‘better’ but the reality is that
appraisal types and systems should be as unique to a company as possible. If you are
searching for an employee appraisal method that provides meaningful data, ensure that no
matter what – it suits the culture of your workplace and we recommend that you keep it as
simple as it can be. Here is a great overview of the most popular and common appraisal
methods for a variety of business models.
To begin, we must first analyze the parties involved with the various appraisal methods.
Overall, performance appraisals can be set up to incorporate feedback from 3 different
sources:
Feedback from the employee being evaluated
Feedback from the manager/supervisor
Feedback from other stakeholders (peers, customers etc.)
EMPLOYEE FEEDBACK:
Self-Evaluation Method
Self evaluations are a great way to kick-off reviews. A self-evaluation is when the employee
is asked to judge their own performance against predetermined criteria. The advantage of this
kind of an appraisal is that the employee is allowed to give his input into his performance
appraisal, and the company can use this self-appraisal along with the standard appraisal to
give a more rounded employee review. The disadvantage is that an employee may not be able
to evaluate their own performance objectively, giving himself an artificially high
performance grade and making the self-appraisal less valuable1. Employee self-evaluations
help to demystify the appraisal process and can provide interesting insight into gaps between
employee and manager ratings. Self appraisals also help to ensure that employees have read
and hopefully have analyzed every corner of their performance. For more information on
self-evaluations, please read the emPerform post: Self-Evaluations: Useful or Not?
Journaling
Technically, employees should be encouraged to keep ongoing journal notes to document
performance milestones and use those to support their self-assessments; however, technology
is causing this process to shift as employees can now use instant feedback tools within
appraisal systems to send performance notes directly to their manager’s library of notes.
MANAGER FEEDBACK:
Management By Objectives
This method, often called MBO, is designed to include employees in the goal-setting process
and define “success” by measuring accomplishments against a clearly established set of
objectives. If managers and employees begin the year by working together to list these
objectives, the end-of-year appraisal can simply compare each goal with its final outcome.
This method is simple, clear, and empowers employees in the goal setting process but it
disregards non-goal-related success metrics.
Graphic Rating Scales
This is probably the most common. Using this method, a supervisor rates an employee on a
numerical scale for a defined set of behaviors, traits, competencies, or completed projects.
This method gains points for simplicity and functionality, but it only works well if both
managers and employees share the same understanding of each point on the scale (for
example, on a scale of one to ten, is an “average” performance given a mid-range rating or
the lowest rating?) or if the rating categories focus on ‘traits’ rather than ‘behaviour’. For
more information about rating scales, see The Traditional Rating Scales: Needs Improvement
Weighted Checklist Method
A weighted checklist presents the evaluator with a set of yes or no questions that each carry a
predetermined value. Questions may include, for example, “Does the employee follow
directions carefully?” or “Does the employee make frequent mistakes?” The numerical value
of each answer is then added and applied to an overall determination of his or her success.
These kinds of questions must be both worded and weighted carefully or the results can
become confusing. But when properly executed, the method is clear and allows easy
comparison between each employee and the next.
Paired Comparison Analysis
This option relies on a grid that presents numerical values for each employee based on an
established set of criteria. After the values are collected, they can be reviewed against other
values presented in the same format and affected by the same factors. This method can be
complex and labor intensive if done manually, but it allows the kinds of apple-and-orange
comparisons that often present philosophical challenges to HR managers who need to
standardize evaluation methods across groups of employees facing very different tasks.
Essay Evaluation Method
The Essay method is the grandfather of methods. This method provides managers with an
open-ended opportunity to describe an employee’s strengths and weaknesses in short essays.
Essay evaluations give supervisors a chance to assess behaviors within a complex context,
but it removes some of the easy comparability of the paired-comparison method above and
leaves a lot of room for confusion. Essay Evaluations are very unstructured and are often
riddled with bias. If this was one of the first methods used to evaluate performance – it is no
wonder why evaluations have been given a bad rep. There is still a place for essays, but in a
different form. Today’s essays are shorter, specific, and usually used to support a rating.
Appraisal software like emPerform also gives manager writing assistant tools for tackling
such compositions.
Critical Incident Method
Like the essay method above, the critical incident method allows supervisors to describe an
employee’s excellent or poor response to situations arising during the year in question. This
method keeps answers open-ended, flexible, multi-dimensional, and respectful of context.
But it also resists standardization and comparison, and if the incidents aren’t recorded and
discussed as they occur, a subjective assessment made weeks or months later may have
limited value.
OUTSIDE (360) FEEDBACK:
Gathering feedback from multiple sources is a great way to ensure employees are rated fairly
and accurately. 360 feedback incorporates data from peers, supervisors and even outside
parties like customers and suppliers. This broad feedback can provide a multi-dimensional
picture of performance that can cancel the influence of bias or outlying data points. The goal
is to paint an accurate picture of employees strengths and weaknesses. 360 feedback can be
collected to gauge performance but can also be executed solely for development (often the
case with leadership/executive 360’s).
There are two types of 360 feedbacks that can be incorporated into appraisals:
Structured 360 Feedback
This 360 method gathers appraisal information from an employee’s peers and direct reports
as well as his or her supervisor in a very structured manner. This method traditionally
involves the formal collection of information from many people using a survey. This method
can be expensive and time consuming to execute depending on a company’s delivery. If you
are looking for an appraisal software system, ensure that the one you choose has an integrated
survey tools for conducting 360 surveys and incorporating the results into the reviews. This
cuts back on cost and gives companies the control over executing as many custom 360’s as
desired.
Unstructured 360 Feedback
The impact of using Unstructured feedback is relatively new in the appraisal world and is
making a huge difference in performance management and business success. Unstructured
feedback is typically being collected year-round via technology-enabled appraisals where
comments, journal notes, and feedback are collected as it happens. This type of feedback
serves as a summary of performance throughout the cycle and is greatly increasing the
accuracy of appraisals as managers have access to a library of notes to help support
evaluation decisions.
A winning appraisal strategy is the one that best suits your organization, but don’t be scared
to shake things up to get better results. Revisit your appraisal forms and the collection
methods regularly to see if it is being used properly and to its best potential by managers and
staff. Incorporating elements from all types in the simplest way possible will ensure that your
organization is doing all that it can to develop employee performance year-round instead of
treating performance management as an annual event.
If you are looking for performance appraisal software that if flexible enough to accommodate
your unique appraisal methods, consider a platform with multiple utilities that can help you
create the appraisal models that best suit your needs offers an unlimited number of custom
appraisals and workflows so that you can tailor your model regardless of company structure
and requirements.
CHAPTER 6
PERFORMANCE APPRAISAL AT
CC I
PERFORMANCE APPRAISAL AT CC I
The performance appraisal system followed in CCI is one and same from decades. CCI uses
Annual Confidential Report (ACR) as the method of performance appraisal. Performance appraisal in
CCI is done annually. The appraisal process starts from the month of October every year.
The reason of carrying appraisal system in month of October and not in April or May is due to
the business activity being carried in the company. As the company deals with the crop COTTON, the
process related to its buying, processing and selling starts in summer that is in April. Due to this all
employees are completely engaged and have less or no time to devote for appraising self and reportees.
In that case, to have clear, transparent and proper appraisals the appraisal process is carried in off
season that is in October.
The Confidential Report are to be written, reviewed and counter signed within 45 days for the
expiry of each reporting year (i.e. October to September). To adopt discipline, in case there is in
existence the concept of writing self appraisal – in normal course Self Appraisal part is to be
submitted to the Reporting Officer within 15 days and the Reporting Officer, Reviewing Officer and
Accepting Officer in turn take 10days at each level respectively to complete the journey of writing of
Annual Confidential Report within the stipulated period of 45 days from 1st October.
In case of staff where the concept of writing of Self Appraisal is not in existence- the
Reporting Officer submit the Annual Confidential Report within 15 days. The Reviewing Officer and
the Officer in turn take 15 days at each level respectively to complete the journey of writing the
Annual Confidential Report within stipulated period of 45 days from 1st October.
SWOT OF ANNUAL CONFIDENTIAL REPORT METHOD
STRENGTH
1. Performance test scores indicate how well he/she did on tasks that required him/her to
examine.
2. The reporting authority (appraisor) is well versed with what the appraisee is expected to do but
not communicated to the appraisee.
3. This is a report prepared by the employee's senior wherein he highlights the subordinate's
strengths and weaknesses of performance in the past year.
4. WEAKNESS
1. It focus on evalutaing the emloyee rather than developing them.
2. Performance is not reviewed/monitored periodically.
3. Focuses only on qualitative factor and no consideration on quantitative factors.
4. Scope of personal bias as the appraisal form contains only subjective factors and not objective.
5. The rating scale is not defined also does not focuses on facts and figures while rating.
6. Does not focus on the KPAs of the employees.
7. Reports are never submitted on time.
OPPORTUNITY
1. Expand topics to encompass performance appraisal of employees to be use full in different
scenarios.
2. Use growing resources to expand capabilities, accelerate development.
3. There are much more effective techniques for appraisal.
THREATS
1. No two communications on performance leads to less clarity of role to be performed.
2. Lack of awareness among employees on latest trends in the industries on performance
management.
3. Employability of the employee decreases gradually by performing fixed set of task in non
competitive environment.
4. Poor job satisfaction due to monotonous job for years.
5. Lack of skills in employees as no training is provided.
CHAPTER 7
RESEARCHMETHODOLOGY
RESEARCH METHODOLOGY
The process used to collect information and data for the purpose of making business decisions.
The methodology may include publication research, interviews, surveys and other research techniques, and could include both present and historical information.
Research is defined as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The Advanced Learner’s Dictionary of Current English lays down the meaning of research as “a careful investigation or inquiry especially through search for new facts in any branch of knowledge.”
In other hand the research methodology acts as the nerve center because the entire research is bounded by it and to perform a good research work, the internal and external environment has to follow the right methodology process.
SOURCES OF DATA
The sources of the data are as follows:-
PRIMARY DATA
Internal data about working of HR department gathered from
organization
Interview
Observation
Sufficient data collected through feedback forms by the employees
Questionnaires
SECONDRAY DATA
Magazines, journals, brochures, etc.
Website of the company and other websites
Books
Earlier researches on similar topic.
In the project I have used primary data which was collected from the
questionnaire being circulated among the employees. The employees are
mainly the first level management i.e. Deputy Manager and Assistant
Manager in CCI.
SAMPLE
The sample for the project was collected through questionnaire from the
employees at level one in CCI who are Deputy Manager and Assistant
Manager. The sample size is of 10 employees among whom 6 employees are
Deputy Manager and 4 are Assistant Manager.
DATA ANALYSIS AND INTERPRETATION
CHAPTER 8
DATA ANALYSISAND
INTERPRETATION
The data analysis and interpretation has been done on the data collected from the questionnaire which was circulated to the employees. The questionnaire included the questions on the performance appraisal being conducted in CCI and the employees’ reviews on the PA system being followed in CCI.
Questions and Interpretation
1. Since how many years have you been working with this organization?
No of years Response0 to 5 yrs 15 to 10 yrs 610 to 15 yrs 0More than 15 yrs 3
INTERPRETATION:
About 60% of the employees are associated with the organization for about more than 5 years. This also interprets that employees are closely associated with the organization and are well acquainted with the organization policies, culture an environment.
2. In your Opinion what is the purpose of Performance Appraisal?
OptionsNo. of
Respondent
10%
60%
30%
No of years
0 to 5 yrs5 to 10 yrs10 to 15 yrsMore than 15 yrs
Evaluation of Employees’ performance 4Promotion of Employees 0Job Satisfaction of Employees 1Motivation of employees 3All of the above 2
INTERPRETATION:
According to the employees the purpose of the performance appraisal differs from employee to employee. 40% of the employees believe that purpose of PA is for the evaluation of the employees’ performance, 30% says it’s for motivation of employees and 10% say it’s for Job Satisfaction of Employees where as 20% of sample size are with the all the options provided. None of them go with the option stating promotion of employees. But the main purpose of the PA in CCI is for promotion of employees.
3. Your opinion as to the present appraisal system…
OptionsNo. of
Respondent
40%
10%
30%
20%
Purpose of PA
Evaluation of Employees’ per-formance
Promotion of Employees
Job Satisfaction of Employees
Motivation of employees
All of the above
Poor 1Fair 1Good 6Very Good 2Excellent 0
10%
10%
60%
20%
Opinion on present PAS
Poor
Fair
Good
Very Good
Excellent
INTERPRETATION:
Majority of the employees i.e. 60% of them say that the appraisal system is good in the organization. And 20% says it’s Very good. But nobody says it’s excellent after working in the organization for more than 5 years.
4. According to you who should do the appraisal?
Options No. of
RespondentReporting Authority 9Peer 0Subordinates 0Customer 0All except customer 1
90%
10%
Appraisal should be done by..
Reporting Authority PeerSubordinates Customer All except customer
INTERPRETATION:
Majority of the employees i.e. 90% say that appraisal should be done by Reporting Authority whereas one employee says that the appraisal should be done by everybody except the customer. This can interpreted that the employees are happy with the current way of appraising.
5. Who sets the goals, objectives and KPAs for you?
OptionsNo. of
RespondentReporting Authority 1Self 3Both A & B 5HR Professionals 1
10%
30%
50%
10%
Setting of goals and KPAs
Reporting Authority
Self
Both A & B
HR Professionals
INTERPRETATION:
50% of employees say that setting of goals, objectives and KPAs should be done by both; Reporting Authority and Self. As reporting authority has clear ideas on what task to be done and the realistic targets can be set. And self states that one knows his or her own capabilities which can be utilized while fix the KPAs and goals. While 30% says it should be done by self. And 10% go with the Reporting Authority and HR professionals.
6. Do you think that appraisal helps in improving skills and performance area?
OptionsNo. of
RespondentFully Disagree 0Partially Disagree 0Partially Agree 7Fully Agree 3
70%
30%
Appraisal results in improvement
Fully Disagreed
Partially Disagreed
Partially Agreed
Fully Agreed
INTERPRETATION:
70% of employees partially agree that appraisal results in improvement of the performance area and skills. But 30% of the employees fully agree. This indicates that the employees should be given regular training for up-gradation al their skills and performance area.
7. Does personal bias creeps-in while appraising an employee?
Options No. of RespondentFully Disagreed 3Partially Disagreed 5Partially Agreed 2Fully Agreed 0
30%
50%
20%
Biasness while appraising
Fully DisagreedPartially DisagreedPartially AgreedFully Agreed
INTERPRETATION:
50% of the population says that the personal bias does not creep in while appraising an employee. While 30% of population fully disagree on biasness creeping while appraising and 20% partially agree on biasness creeping while appraising. This indicates that biasness creeps while appraising but not fully.
8. If given a chance, would you like to review the current appraisal technique?
Options No. of RespondentYes 7No 0Can’t say 3
70%
30%
Change in Appraisal technique
YesNoCan’t say
INTERPRETATION:
About 70% of the employees want change in appraisal technique. This can be due to the continuous change trends in HR practices related to performance management in the industries. And 30% say of employees cannot say anything.
9. Does performance appraisal leads to identification of hidden potentials?
Options No. of RespondentYes 7No 1Can’t say 2
64%9%
27%
PA identifies the hidden potentials
YesNoCan’t say
INTERPRETATION:
Performance appraisal helps to identify the hidden potential is opted by 64% of the employees. 27% of the populations are not aware whether the PA identifies or not. But 9% of employees says go with the option No.
10. What do you get after performance Appraisal?
Options No. of RespondentPromotions 7Incentives 3Training 1Transfer 2Termination
1
50%
21%
7%
14%
7%
PA gives you
Promotions
Incentives
Training
Transfer
Termination
INTERPRETATION:
Performance appraisal gives promotion to 50% of employees as the main objective in CCI of PA is promotion. 22% gets incentives. 7% gets chance of undergoing training and termination sometimes. And 14% gets transfer which is decided by management and sometimes demanded by the employees themselves. Termination is the very rarely given in CCI.
FINDINGS
CHAPTER 9
FINDINGS
Performance appraisal at CCI is done annually.
The Confidential Report are to be written, reviewed and counter signed within 45 days for the expiry of each reporting year (i.e. October to September).
This is a report prepared by the reporting authority wherein he highlights the subordinate's strengths and weaknesses of performance in the past year.
The ACR has following stagesSelf appraisal Reporting Authority Reviewing Authority Accepting Authority
Appraisal forms are differentiated on the basis of level of hierarchy that is position or designation.
The ACR is no more confidential as from September 2014 onwards the amendment stated that it will shared with the employees irrespective of the feedback.
The main objective of appraisal is for promotion purpose but is not directly linked to it.
PA does not leads to incentives or any training program etc.
Every year employees receive 3% increment in their basic salary.
Unless any employee conducts a severe mistake the incentive is given and not deducted.
PA is the mere process carried out but does not motivate the employees.
CONCLUSION
CHAPTER 10
CONCLUSION
This project has demonstrated Performance Appraisal System in CCI. This project has enriched my theory knowledge with the practical knowledge. Performance Appraisal is an important issue for any organization as it sync with performance management of an individual employee.
The Performance Appraisal System in the organization CCI follows “Annual Confidential Report” as a means of calculating performance appraisal. The appraisal is done by the immediate supervisor of the concerned employee. As of change adopted in PAS, the feedback will be shared with the employees; the implementation is still a step ahead. As employee has to report to the Reporting authority so they only can identify the training need for the concerned employee based on his feedback.
The first level of management cadre i.e. Deputy Manager and Assistance Manager are excepting some change in the PA system as they know the latest trends being followed in the industries. They are not satisfied with the present appraisal system, in spite of getting Excellent or Outstanding in ACR for several years no promotion is given. Each department is requirement of training related to latest technology like ERP, various skills like selling and negotiation etc.
While interviewing and discussing on present PAS; the DM and AM hesitated in revealing the flaws in the system as 70% of sample population were in favor of change in PA system. There is intervention of personal bias while appraising but it did not reflected in the survey being conducted.
This project has helped me to enrich my knowledge in PA system being carried every year in a Public sector company.
SUGGESTIONS/RECOMMENDATION
CHAPTER 11
SUGGESTION/RECOMMENDATION
The current PA should be discontinued as its very traditional approach and employees being tangible assets are valuable for organization and their care should be taken which ACR lacks.
MBO is an appropriate performance appraisal system in current scenario as it will lead to empowerment of employees.
Team building activities like picnics, management games should be promoted within the organization.
The employees should be given recognition for their valuable contribution from time to time, this would boost their morale. Incentives and rewards must be linked to performance appraisal system as after implementation of MBO the system will consider quantitative factors.
Training should be give on ERP to the employees who deal with it on regular basis is must.
The appraiser should keep a proper track of all the employees’ performance during the whole year, so that there aren’t any problems in time of the appraisal.
Special training and awareness programs should be conducted for the appraisers and the appraisees on the purpose and the benefits of Performance Management System. It should create consciousness and strive for self development.
The scope of Performance appraisal should not be limited to promotion alone but should be made use for identifying training needs, career development and self improvement. It should also be used for incentives and career growth.
In order to achieve better understanding and to develop skills, development and training programs are of absolute necessity. So management may conduct training programs based on the performance appraisal system.
The preparation of a comprehensive manual guideline giving the objectives of the system could be done. The process, the role of the appraiser, appraisees, HRD department and the reviewing officer should be made clear. The manual should spell out the complete guidelines of the performance management system.
PROPOSED PERFORMANCE APPRAISAL SYSTEM
After studying and interviewing the population selected for survey, I found that MBO can be the appropriate system for performance appraisal. As MBO is the result-oriented process and informs employees about the expectations of the top management.
The performance appraisal system should spell out the growth curve of an employee. The mgmt. should provide with growth plan for each employee and follow it effectively and efficiently. The current performance appraisal system i.e. ACR should be discontinued as it does takes care of the employees’ capabilities, morale, training needs, growth etc. Also the business environment is changing continuously and getting more and more complex it is necessary to remain updated and employable. The new PA system i.e. Management By Objective (MBO) should be adopted as it focus on following:
Individual evaluation method Increases motivation level of employees Two-way communication between the Reporting Authority and Appraise on
goal setting career development and performance management. Reduces external control, internal and role conflicts and ambiguity. Helps to identify and develop performance deficiencies by providing effective
training and development of employees Provide healthy environment as it satisfies the psychological needs of the
employees.
Process of implementation of MBO
1. Organizational Purpose, Managerial Philosophy, Resources & Constraints, Achievements of objectives.
Define the job
Setting objectives
Developing Action Plan
Periodic performance revieew
Performance Apparaisal
Feedback
Orgn Purpose,Managerial
Philosophy,Resources & Constraints,
Achievements of objectives
2. Define the jobThis helps the subordinate to understand what is expected of them. The
Reporting Authority and Subordinate (Appraise) should sit together (if necessary) and a constructive discussion on task identification and goal setting should be done. Required changes should be made.
3. Setting objectivesIt’s multi-stage and multi-functional process. Joint participation in decision
making should be done. Goal congruence should be brought strategically if required so that appraise has clarity his roles and responsibility and expectation from his position. They should be SMART.
4. Developing Action PlanThis gives as start to the execution part of the appraisal after the objectives are
set. The action plan should be directive. In fact it should include exercise involving work, time and resource schedules.
5. Periodic Performance ReviewThe Reporting Authority and Appraise should periodically review the progress
of work and measures the performance against the objectives and standards laid down. The meeting should be done quarterly. The appraiser should keep a proper track of all the employees’ performance during the whole year, so that there aren’t any problems at time of the appraisal.
6. Performance AppraisalAfter following the process, MBO will provide the Reporting Authority a
quantitative factor to review the subordinate’s performance. Because in the present system only qualitative factors are covered and there is no specification for rating appraise on qualitative scale of excellence, very good, good, average and below average.
7. FeedbackContinuous feedback should be given because it will help in motivating
employees. The feedback should be specific, relevant and timely to make it effective.
As Peter Drucker has stated that performance Appraisal should be based on strength and not on the weakness of the employees and these weaknesses should be turned into the strengths through proper training and development.
PROPOSED APPRAISAL FORM
The performance appraisal form in CCI is in four parts. The former part is Personal Date which is filled by the administrative section of the concern office. The part 2 is Self appraisal. The part 3 is Assessment of the Self appraisal by the Reporting Authority. The part 4 is Remarks of Reviewing Authority. And lastly part 5 is Remarks of Accepting Authority. The Reporting, Reviewing and Accepting authority differs on the basis of the person who is being appraised.
The form needs to update so that it matches with current ideal performance appraisal forms and system. The form has covered wide aspect but lacks as compared to the current forms. The objectives, key result areas, goals are also not specific. Also the Reporting Authority assessment is also subjective that leads to footprints of bias while rating. The form is partly good but need to have more quantifiable aspects.
The form should also include Key Performance Areas along with key result areas, facilitating and inhibiting factors that has traces on performance also should include training and development section where the employees’ grey or lacking areas can be identified and rectified. The form should not only have objective of promotion but it should also have grooming parts so that employees’ performance is effective.
The factors that form should include are as follows:
1. Key Performance Areas
KPA Goals/Objectives Weightage Achievements
Guidelines: The KPAs should be 4 to 8 and more than that. Should be specific and areas requiring priority attention. Critical functions of the job relevant at present & in future. Should have role Clarity – No contradictory expectations from the same role. Facilitates/leads to delegation of functions to subordinates Distinctly characterize the job & make it different from other jobs. Should indicate critical/important/key tasks only. Should help distinguish between an effective & less effective job performance. Each KPA should lead to specific tasks/objectives to be done every year (specificity
& quantification). The required changes should be made from time to time over years. KPAs can be weighted as per their importance.
2. Facilitating and Inhibiting factors
Facilitating factors Inhibiting Factors
Guidelines: The facilitating factor is that, that helps an employee to perform better or that
facilitates the performance. Whereas inhibiting is that act as constrains for the employee to perform as per the
expectation. These factors should be included in part 2 i.e. self appraisals. On the basis of this it becomes is to identify the obstacles face by the employees in a
year and its impacts on the performance. Should be limited and not exceed 8.
3. Critical Attributes
Guidelines:
The critical attributes should include the below listed attributes:
Critical Attribute DescriptionInnovativeness Ability to think better and new ways of
doing things that result in introduction of new ideas or improvements of the system and operation
Initiative Ability to determine and initiate actions result in handling job better without any delay and required by a manager.
Interpersonal skills Ability to interact effectively with people at all levels to gain the confidence & respect & work in a collaborative and participative manner.
Communication skills Ability to convey thoughts and feelings clearly both through oral as well as written for better understanding
Resourcefulness Ability to use the resources to achieve desired results and devise ways & means
Critical Attributes Excellent Very good Good Adequate Inadequate
of solving problems in difficult situations.
Along with this it should also include attributes related to specific roles. This attributes should be identified in the beginning of the year.
4. Training and development
In the company Outside the company
Guideline: The training and development should be included in the self appraisal part in the
beginning. This T&D then later should be part of reporting authority. In the company and outside the company should be relative to the job and must take
care of the requirements to gain maximum output from employees.
CHAPTER 12
REFERENCES
REFERENCES
BOOKS
Human resource management
Personal and Human resource management -P. Subba Rao
Performance Appraisal - TV Rao
Management Control System- R.S. Aurora & S.R. Kale
OTHER MATERIALS
Indian cotton- A Profile 2013-14
Annual report of the company.
WEBSITES
www.cotcorp.gov.in
www.citehr.com
CHAPTER 13
ANNEXURE
QUESTIONNAIRE
1. Since how many years have you been working with this organization?a. 0-5 Years b. 5-10 Years c. 10 to 15 Years d. More than 15 Years
2. In your Opinion what is the purpose of Performance Appraisal?a. Evaluation of Employees’ performance b. Promotion of Employees c. Job Satisfaction of Employees d. Motivation of employees
3. Are you aware of the procedure of Performance Appraisal being followed in CCI?
a. Yes b. No
4. Your opinion as to the present appraisal system…
a. Poor b. Fair c. Good d. Very Good e. Excellent
5. Do you know who does your appraisal?
a. Reporting Authority b. Peer c. Subordinates d. Customer e. All except customer
6. According to you who should do the appraisal?
a. Reporting Authority b. Peer c. Subordinates d. Customer e. All except customer
7. Who sets the goals, objectives and KPAs for you?
a. Reporting Authority b. Self c. Both A & B d. HR Professionals
8. Do you think that appraisal helps in improving skills and performance area?
a. Fully Disagreed b. Partially Disagreed c. Partially Agreed d. Fully Agreed
9. Is the top level management partial in Performance Appraisal?
a. Fully Disagreed b. Partially Disagreed c. Partially Agreed d. Fully Agreed
10. Does personal bias creeps-in while appraising an employee
a. Fully Disagreed b. Partially Disagreed c. Partially Agreed d. Fully Agreed
11. If given a chance, would you like to review the current appraisal technique?
a. Yes b. No c. Can’t say
12. Does performance appraisal leads to identification of hidden potential?
a. Yes b. No c. Can’t say
13. What do you get after performance Appraisal?a. Promotions b. Incentives c. Training d. Transfer e. Termination
14. How Performance Appraisal affects the productivity of the employees
Motivated Indifferent Demotivated
Positive Feedback
Negative Feedback