veena performance appraisal project_3 (3)

A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL

SILICON CITY COLLEGE OF MANAGEMENT AND COMMERCE

CHAPTER – I

INTRODUCTION



THEORITICAL FRAMEWORK

Appraising the performance of individuals, groups and organization is a common practice

of all societies. While in some instances these appraisal processes are structured and

formally sanctioned, in other instances they are an informal and integral part of daily life.

A performance is a process of evaluating an employee’s performance of a job in terms of

its qualification .It is a process of judging the values, qualities, excellence, qualities or

status of some object, person or thing.

Meaning:

Performance appraisal is the process of obtaining, analyzing and recording information

about the relative worth of an employee. The focus of the performance appraisal is

measuring and improving the actual performance of the employee and also the future

potential of the employee. Its aim is to measure what an employee does.

Definition:

According to Heyel “it is a process of evaluating the performance and qualification of the

employees in terms of the job for which he is employed, for purpose of administration

including placements election for promotions, providing financial rewards and other

actions which require differential treatment among members of a group as distinguished

from actions affecting all members equally.

Need for performance appraisal

Performance Appraisal is being practiced in 90% of the organizations worldwide. Self-

appraisal and potential appraisal also form a part of the performance appraisal processes.



Typically, Performance Appraisal is aimed at:

To review the performance of the employees over a given period of time.

To help the management in exercising organizational control.

To diagnose the training and development needs of the future. Provide

information to assist in the HR decisions like promotions, transfers.

Provide clarity of the expectations and responsibilities of the functions to be

performed by the employees.

To judge the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training, and development.

To reduce the grievances of the employees.

Helps to strengthen the relationship and communication between superior –

subordinate and management-employees.

Objectives of performance appraisal:

Increase staff self-esteem.

Gain new insight into staff and supervisors.

Better clarify and define job functions and responsibilities.

Develop valuable communication among appraisal participants.

Encourage increased self-understanding among staff as well as insight into the

.Kind of development activities that are of value.

Distribute rewards on a fair and credible basis.

Clarify organizational goals so they can be more readily accepted.

Improve institutional/departmental manpower planning, test validation, and

development of training programs



Appraisal System Attributes: Clarity, Openness, and Fairness

The performance appraisal system must possess the attributes of clarity, openness, and

fairness. These attributes are related to the historic values of the student affairs

profession. While specific implementation of these attributes may vary, the following

should be represented in effective performance appraisal:

Ongoing Review of Position and Performance:

Effective performance appraisal systems conduct ongoing evaluations of both the

position and the staff member occupying it. With ongoing position analysis and

performance appraisal, there are few surprises, and changes in the environment are

quickly incorporated into the official appraisal system.

Job Descriptions:

Job descriptions should be reliable, valid, understandable, and specific enough to provide

direction for staff behavior. Job descriptions should focus on what the staff member does

(e.g. advises the student government association) and what outcomes are expected. These

outcomes should be clearly linked to departmental and institutional objectives and needs.

Job descriptions should use action words such "plans" or "supervises" rather than

"demonstrates initiative" or "is likable." Job descriptions should provide guidelines for

staff so they know the specific behaviors expected to perform. The responsibilities of the

staff member should be listed in order of importance and weighted relative to importance,

if possible.

Participatory and Interactive Appraisal:

Appraisal system processes should be designed in concert with all stakeholders and open

to constant interaction with them. Plans made jointly by staff and administrators have a

better chance of working than plans made independently by either party.



Workable Formats that Avoid Systemic Bias:

Effective performance appraisal systems must include workable formats that avoid

systematic biases. Checklists of performance criteria completed at the same time every

year should be avoided. This type of approach simply fails to produce any useful

information for individual or organizational improvement.

Other biases include giving preferential treatment to some but not all staff, rating all staff

the same, being overly lenient or overly harsh toward some or all staff, and practicing

conscious or unconscious racial or gender prejudice.

Adopting a format that includes the standards of clarity, openness, and fairness and that

involves more than one appraiser may help to control some of this bias.

ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the standards

which will be used to as the base to compare the actual performance of the employees.

This step requires setting the criteria to judge the performance of the employees as

successful or unsuccessful and the degrees of their contribution to the organizational

goals and objectives. The standards set should be clear, easily understandable and in

measurable terms. In case the performance of the employee cannot be measured, great

care should be taken to describe the standards.

Communicating the standards:

Once set, it is the responsibility of the management to communicate the standards to all

the employees of the organization. The employees should be informed and the standards

should be clearly explained to the. This will help them to understand their roles and to

know what exactly is expected from them. The standards should also be communicated to



the appraisers or the evaluators and if required, the standards can also be modified at this

stage itself according to the relevant feedback from the employees or the evaluators.

Measuring the actual performance:

The most difficult part of the performance apprisal process is measuring the actual

performance of the employees that is the work done by the employees during the

specified period of time. It is a continuous process which involves monitoring the

performance throughout the year. This stage requires the careful selection of the

appropriate techniques of measurement, taking care that personal bias does not affect the

outcome of the process and providing assistance rather than interfering in an employees

work.

Compare the actual with desired performance:

The actual performance is compared with the desired or the standard performance. The

comparison tells the deviations in the performance of the employees from the standards

set. The result can show the actual performance being more than the desired performance

or, the actual performance being less than the desired performance depicting a negative

deviation in the organizational performance. It includes recalling, evaluating and analysis

of data related to the employees performance.

Discussing results:

The result of the appraisal is communicated and discussed with the employees on one-to-

one basis. The focus of this discussion is on communication and listening. The results,

the problems and the possible solutions are discussed with the aim of problem solving

and reaching consensus. The feedback should be given with a positive attitude as this can

have an effect on the employees’ future performance. The purpose of the meeting should

be to solve the problems faced and motivate the employees to perform better.



Decision making:

The last step of the process is to take decisions which can be taken either to improve the

performance of the employees, take the required corrective actions, or the related HR

decisions like rewards, promotions, demotions, transfers etc.

Challenges

In order to make a performance appraisal system effective and successful, an

organization comes across various challenges and problems. The main challenges

involved in the performance appraisal process are:

Determining the evaluation criteria:

Identification of the appraisal criteria is one of the biggest problems faced by the top

management. The performance data to be considered for evaluation should be carefully

selected. For the purpose of evaluation, the criteria selected should be in quantifiable or

measurable terms

Errors in rating and evaluation:

Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait

influencing the evaluator’s rating for all other traits) etc. may creep in the appraisal

process. Therefore the rater should exercise objectivity and fairness in evaluating and

rating the performance of the employee

Lack of competence:

Top management should choose the raters or the evaluators carefully. They should have

the required expertise and the knowledge to decide the criteria accurately. They should

have the experience and the necessary training to carry out the appraisal process

objectively.



Create a rating instrument:

The purpose of the appraisal process is to judge the performance of the employees rather

than the employee. The focus of the system should be on the development of the

employees of the organization.

Pre-requisites for Effective & Successful Performance Appraisal

The essentials of an effective performance system are as follows:

Documentation:

Means continuous noting and documenting the performance. It also helps the evaluators

to give a proof and the basis of their ratings.

Standards / Goals:

The standards set should be clear, easy to understand, achievable, motivating, time bound

and measurable.

Practical and simple format:

The appraisal format should be simple, clear, fair and objective. Long and complicated

formats are time consuming, difficult to understand, and do not elicit much useful

information.

Evaluation technique:

An appropriate evaluation technique should be selected; the appraisal system should be

performance based and uniform. The criteria for evaluation should be based on

observable and measurable characteristics of the behavior of the employee.



Communication:

Communication is an indispensable part of the appraisal process. The desired behavior or

the expected results should be communicated to the employees as well as the evaluators.

Communication also plays an important role in the review or feedback meeting. Open

communication system motivates the employees to actively participate in the appraisal

process.

Feedback:

The purpose of the feedback should be developmental rather than judgmental. To

maintain its utility, timely feedback should be provided to the employees and the manner

of giving feedback should be such that it should have a motivating effect on the

employees’ future performance.

Personal Bias:

Interpersonal relationships can influence the evaluation and the decisions in the

performance appraisal process. Therefore, the evaluators should be trained to carry out

the processes of appraisals without personal bias and effectively.

Performance Appraisals as Career Development

Performance appraisal is a part of career development. The latest mantra being followed

by organizations across the world being – “get paid according to what you contribute” –

the focus of the organizations is turning to performance management and specifically to

individual performance. Performance appraisal helps to rate the performance of the

employees and evaluate their contribution towards the organizational goals. Performance

appraisal leads to the recognition of the work done by the employees, many a times by

the means of rewards and appreciation etc. It plays the role of the link between the

organization and the employees’ personal career goals.

Potential appraisal, a part of Performance appraisal, helps to identify the hidden talents

and potential of the individuals. Identifying these potential talents can help in preparing

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the individuals for higher responsibilities and positions in the future. The performance

appraisal process in itself development in nature.

Performance appraisal is also closely linked to other HR processes like helps to identify

the training and development needs, promotions, demotions, changes in the compensation

etc. A feedback communicated in a positive manner goes a long way to motivate the

employees and helps to identify individual career developmental plans. Based on the

evaluation, employees can develop their career goals, achieve new levels of competencies

and chart their career progression. Performance appraisal encourages employees to

reinforce their strengths and overcome their weaknesses.

Approaches to Performance Development

Performance appraisal - Traditional approach

Traditionally, performance appraisal has been used as just a method for determining and

justifying the salaries of the employees. Than it began to be used a tool for determining

rewards (a rise in the pay) and punishments (a cut in the pay) for the past performance of

the employees.

This approach was a past oriented approach which focused only on the past performance

of the employees i.e. during a past specified period of time. This approach did not

consider the developmental aspects of the employee performance i.e. his training and

development needs or career developmental possibilities. The primary concern of the

traditional approach is to judge the performance of the organization as a whole by the

past performances of its employees

Therefore, this approach is also called as the overall approach. In 1950s the performance

appraisal was recognized as a complete system in itself and the Modern Approach to

performance appraisal was developed.



Performance appraisal - Modern approach

The modern approach to performance development has made the performance appraisal

process more formal and structured. Now, the performance appraisal is taken as a tool to

identify better performing employees from others, employees’ training needs, career

development paths, rewards and bonuses and their promotions to the next levels.

Appraisals have become a continuous and periodic activity in the organizations. The

results of performance appraisals are used to take various other HR decisions like

promotions, demotions, transfers, training and development, reward outcomes. The

modern approach to performance.



Techniques of Performance Appraisal

The various methods and techniques used for Performance appraisal can be categorized

as the following traditional and modern methods:

TABLE-1.1:-Techniques of performance appraisal

Traditional Methods

Modern Methods

1.Essay appraisal method 1.Assessment method

2. Straight ranking method 2.Behaviorally anchored rating scale

method(BARS)

3.Paired comparison method 3.Human asset accounting method

4.Critical incidents method 4.360 degree performance appraisal

method

5.Field review method 5.Appraisal by results / management by

objective(MBO)

6.Check list method

7.Graphic Rating scale method

8.Forced distribution method

9.Grading method

10.Forced choice distribution method

11.Group appraisal method

12.Man to man comparison method




Traditional Methods of Performance Appraisal

Essay appraisal method:

This traditional form of appraisal, also known as “Free Form method” involves a

description of the performance of an employee by his superior. The description is an

evaluation of the performance of any individual based on the facts and often includes

examples and evidences to support the information. A major drawback of the method is

the inseparability of the evaluator.

Straight ranking method:

This is one of the oldest and simplest techniques of performance appraisal. In this

method, the appraiser ranks the employees from the best to the poorest on the basis of

their overall performance. It is quite useful for a comparative evaluation.

Paired comparison:

A better technique of comparison than the straight ranking method, this method compares

each employee with all others in the group, one at a time. After all the comparisons on

the basis of the overall comparisons, the employees are given the final rankings.

Critical incidents methods:

In this method of Performance appraisal, the evaluator rates the employee on the basis of

critical events and how the employee behaved during those incidents. It includes both

negative and positive points. The drawback of this method is that the supervisor has to

note down the critical incidents and the employee behavior as and when they occur.

Field review:

In this method, a senior member of the HR department or a training officer discusses and

interviews the supervisors to evaluate and rate their respective subordinates. A major

drawback of this method is that it is a very time consuming method. But this method

helps to reduce the superior’s personal bias.




Checklist method:

The rater is given a checklist of the descriptions of the behavior of the employees on job.

The checklist contains a list of statements on the basis of which the rater describes the on

the job performance of the employees.

Graphic rating scale:

In this method, an employee’s quality and quantity of work is assessed in a graphic scale

indicating different degrees of a particular trait. The factors taken into consideration

include both the personal characteristics and characteristics related to the on-the-job

performance of the employees. For example a trait like Job Knowledge may be judged on

the range of average, above average, outstanding or unsatisfactory.

Forced distribution:

To eliminate the element of bias from the rater’s ratings, the evaluator is asked to

distribute the employees in some fixed categories of ratings like on a normal distribution

curve. The rater chooses the appropriate fit for the categories on his own discretion.

Grading method

Under this method .the rater considers certain features and marks them accordingly to a

scale. Certain categories of worth are first established and carefully defined. The selected

features may be analytical ability, cooperativeness, and dependability. Self-expression,

job knowledge, judgment, and organizing ability etc.They may be

A: out standing

B: very good

C: good/average

D: fair

E: poor/very poor



Forced choice distribution method:

This method was evolving after a great deal of research conducted for the military

services during world war ll. It attempts to correct a rater’s tendency to give consistently

high or consistently low ratings to all the employees. The use of this method calls for

objective reporting and minimum subjective judgment.

Group appraisal method:

Under this method, an appraisal group rates employees, consisting of their supervisor and

three or four other supervisor who have some knowledge of their performance. The

advantage of this method is that it is through, very simple and is devoid of any bias, for it

involves multiple judges, but it is very time-consuming.

Man-to-man comparison method:

By this method each employee is compared every trait with all other persons in pairs one

at a time. With this technique, judgment is easier and similar than with the ordinary

ranking method. This method is not suitable when a group is large because, in that case

the number of judgment becomes excessively large.

Demerits of Traditional techniques:

Many of the above traditional performance evaluation techniques have internal

weakeness.For example,

Managers generally are not qualified to assess personality traits, and most

managers are even not properly trained to conduct evaluation and performance

interviews.

Some managers discourage good performance by over emphasizing shortcomings

and almost neglecting good work.

Rater’s personality also plays an important part in the effectiveness of evaluation

programmes.

The relative status of raters in their organization is a factor that is important to the

validity of performance appraisal.



Modern-Method

Assessment centers:

An assessment centre typically involves the use of methods like social/informal events,

tests and exercises, assignments being given to a group of employees to assess their

competencies to take higher responsibilities in the future. Generally, employees are given

an assignment similar to the job they would be expected to perform if promoted. The

trained evaluators observe and evaluate employees as they perform the assigned jobs.

Behaviorally anchored rating scales:

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which

combines the graphic rating scale and critical incidents method. It consists of

predetermined critical areas of job performance or sets of behavioral statements

describing important job performance qualities as good or bad (for e.g. the qualities like

inter-personal relationships, adaptability and reliability, job knowledge etc).

Human resource accounting method.

Human resources are valuable assets for every organization. Human resource accounting

method tries to find the relative worth of these assets in the terms of money. In this

method the Performance of the employees is judged in terms of cost and contribution of

the employees. The cost of employees include all the expenses incurred on them like their

compensation, recruitment and selection costs, induction and training costs etc whereas

their contribution includes the total value added (in monetary terms). The difference

between the cost and the contribution will be the performance of the employees. Ideally,

the contribution of the employees should be greater than the cost incurred on them.



360 Degree performance appraisal:

360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive

appraisal where the feedback about the employees’ performance comes from all the

sources that come in contact with the employee on his job.

360 degree respondents for an employee can be his/her peers, managers (i.e. superior),

subordinates, team members, customers, suppliers/ vendors - anyone who comes into

contact with the employee and can provide valuable insights and information or feedback

regarding the “on-the-job” performance of the employee.

360 degree appraisal has four components:

1. Self appraisal

2. Superior appraisal

3. Subordinate appraisal

4. Peers appraisal

Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses,

his achievements, and judge his own performance. Superior’s appraisal forms the

traditional part of the 360 degree appraisal where the employees’ responsibilities and

actual Performance is rated by superior.

Subordinates appraisal gives a chance to judge the employee on the parameters like

communication and motivating abilities, superior’s ability to delegate the work,

leadership qualities etc. Also known as internal customers, the correct feedback given by

peers can help to find employees’ abilities to work in a team, co-operation and sensitivity

towards others. Self assessment is an indispensable part of 360 degree appraisals and

therefore 360 degree Performance has high employee involvement and also have the

strongest impact on behavior and performance. It provides a "360-degree review" of the

employees’ performance and is considered to be one of the most credible performance

appraisal method.



360 degree appraisal is also a powerful developmental tool because when conducted at

regular intervals (say yearly) it helps to keep a track of the changes others’ perceptions

about the employees. A 360 degree appraisal is generally found more suitable for the

managers as it helps to assess their leadership and managing styles. This technique is

being effectively used across the globe for performance appraisals. Some of the

organizations following it are Wipro, Infosys, and Reliance Industries etc.

MBO method:

MBO has an objective in itself. The objective is to change behavior and attitudes towards

getting the job done. In other words, it is result oriented, it is performance that counts.

Set organizational goals, i.e., establishment of an organizational-wide strategy and

goals.

Joint goal setting. i.e., establishment of short-term performance targets between

the management and the subordinate in a conference between them.

Performance reviews, i.e. frequent performance review meetings between the

managers and subordinate.

Set check posts i.e. establishment of major check post measure progress.

Feedback : the employees who receives frequent feedback concerning their

performance are more highly motivated then those who do not feedback that is

specific, relevant and timely helps satisfy the need most people fell about

knowing where they stand.

Importance and purpose of performance appraisal:

A performance appraisal program (PA program) is important to employees’ professional

development, to meeting the companies or firm’s goals or objectives and, ultimately, to

contributing to the company’s or firms bottom line. No employer, whether a small CPA

firm, a Big Four firm, a nonprofit organization, a government institution or a private or

public company, should be exempt from having a formal PA program. Other benefits that



could be derived from having a PA program include enhanced communications, an

opportunity to effectively address performance problems, and improved employee

morale.

Before creating a PA program, there are several factors to consider. The employer should

first determine the objectives for the program. Second, the employer should develop a

plan and timeframe for launching the program. Finally, the employer should prepare for

any obstacles that might appear, and regularly consider ways to improve the program.

Purpose

The primary reason for having a PA program is to monitor employees’ performance,

motivate staff and improve company morale. Monitoring employee performance requires

routine documentation, which is accomplished through completing a performance

appraisal form. When employees are aware that the company is mindful of their

performance and that they could be rewarded with merit increases and promotions, they

are motivated to work harder. Morale is improved when employees receive recognition or

reward for their work

An effective PA program will assist the company in achieving its goals and objectives.

Not only will training needs be identified and addressed during a PA review, but hidden

talent can be discovered as well. Through identifying these training needs, staff can

perform their jobs at the highest level and be in a better position to address clients’,

members’ and customers’ concerns and questions. A well-developed staff is more likely

to be proactive, productive and resourceful, all of which helps give the company a

competitive edge, from improved customer relations to increased profits.

PROBLEM IN PERFORMANCE APPRAISAL:-

The problem with subjective measure is the rating which is not verifiable by others and

has the opportunity for bias. The rate biases include: (a) halo effect (b) the error of central

tendency, (c) the leniency and strictness biases (d) personal prejudice, and (e) the recent

performance effect.

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Halo Effect:

It is the tendency of the raters to depend excessively on the rating of one trait or

behavioral consideration in rating all others traits or behavioral considerations. One way

of minimizing the halo effect is appraising all the employees by one trait before going to

rate on the basis of another trait.

The error of Central Tendency:

Some raters follow play safe policy in rating by rating all the employees around the

middle point of the rating scale and they avoid rating the people at both the extremes of

the scale. They follow play safe policy because of answerability to management or lack

of knowledge about the job and person he is rating or least interest in his job.

The Leniency and Strictness:

The leniency bias crops when some raters have a tendency to be liberal in their rating by

assigning higher rates consistently. Such ratings do not serve any purpose. Equally

damaging one is assigning consistently low rates.

Personal Prejudice:

If the rater dislikes any employee or any group, he may rate them at the lower end, which

may distort the rating purpose and affect the career of these employees.

The Recent performance Effect:

The raters generally remember the recent actions, of the employee at the time of rating

and rate on the basis of these recent actions favorable or unfavorable than on the whole

activities.



Other factors that are considered as problems are

Less reliability and validity of the performance appraisal techniques

Negative ratings affect interpersonal relations and industrial relations system.

Influence of external environmental factors and uncontrollable internal factors

Feedback and post appraisal interview may have a setback on production

Management emphasizes on punishment rather than development of an employee

in performance appraisal.

Performance counseling

Performance Counseling is especially important when an employee exhibits poor work

performance, poor work habits, or unsatisfactory conduct. Supervisors can solve most

work performance or behavioral problems by appropriately counseling an employee.

When a supervisor recognizes need to address a work performance or behavioral

problem, he or she should consider the following:

Have a confidential meeting with the employee to discuss the performance issue.

Outline the problem and explain how it affects department operations …explain

how the employee's actions fail to meet performance expectations.

Provide the employee an opportunity to explain his or her behavior.

Clearly outline what the employee is expected to do and how he or she is expected

to perform.

Clearly outline the consequences of a failure to resolve the problem.

Establish a timeline for improving performance/behavior.

Give the employee a written summary of the confidential meeting, including the

performance improvement plan.

Offer reasonable support for a successful outcome.

Follow up with the employee, as appropriate, to determine if the situation is required



Serious Conduct Problems

More serious conduct problems could require a supervisor to impose stronger and

immediate corrective action than counseling, including, but not limited to removing the

employee from the workplace. For instance, if an employee's conduct is considered a

threat to the health and safety of other employees, a supervisor should impose the

corrective measure and contact the Employee Relations Division as soon as possible.

Counseling Employees about Performance Problems

Additional guidance is presented below on preparing for and conducting counseling

sessions.

Preparing for a Counseling Session

Once you recognize that a performance problem exists, find out about what

guidance the employee has been given on performance. Nine times out of ten, that

guidance exists only in performance standards that were issued early. But you

may also have some applicable operating manuals or guides, so take a look at

everything.

Read the performance standards. If they don't really describe what you want from

the employee, take the time to fix them. If your organization uses generic

standards that cannot be modified, think through the types of things that you will

say to the employee to further explain what it is you expect. Write these notes

down.

Even though you may never need to go any further than an oral counseling

session to get this employee to improve, take the time to contact the human

resources office and find out what your technical advisor would say if you do

need to take formal action later. Ask that specialist to review the performance

standards to ensure that there aren't any problems with them.

If you do have operating manuals, guides, or other tools that all employees use,

take a look at them and see how these could be used to help the employee



improve. Try to read them as objectively as possible to look for areas that may not

be clear. Remember, you know this job (probably better than almost everybody

else), but there is some part of the job that is not making sense or becoming clear

to this employee. If you have to, break it down into parts and explain it from the

bottom up.

Remember your goal is to improve the employee's performance, not to win an

argument with the employee. To prepare for a counseling session with an

employee, write out and then practice saying what acceptable performance in the

job would mean. Listen to yourself. If it doesn't make any sense to you, it won't

make any sense to the employee. Be as specific as possible.

Have some specific examples of poor performance in your mind (or your notes)

so that you can respond to the inevitable, "What do you mean?" Do not emphasize

past poor performance, though; instead, seek to clarify future good performance.

Conducting the Counseling Session

In scheduling a meeting to discuss a performance issue, make sure you allow

adequate time for your comments and any feedback from the employee.

Whenever possible, conduct the meeting in a private place where the employee

will not be embarrassed if the conversation is overheard by coworkers.

Choose your time based on your knowledge of the employee. Is this someone who

needs to have a meeting like this on Friday so he or she can sort things out over

the weekend? Or is this a person who will feel like you are dumping on him or her

and then leaving no opportunity to respond for 2 days? Use the same thought

process for deciding how information is best given. Although you will be meeting

to have a discussion, would this employee like to read through some written notes

before talking? Would a verbal discussion with a commitment to follow up with

something in writing be more in the style of the employee?

Set and maintain a constructive tone: be calm, professional, and focused.



Seek cooperation, not confrontation, by focusing on how the employee's

performance fits into the performance of the total organization.

Unless you think the employee will attempt to take control of the discussion,

choose several points throughout your comments where you can stop and get

confirmation from the employee that he or she understands the problems and your

expectations. Providing opportunities for him or her to respond will allow the

employee to be active in the discussion and may lessen the negative connotation

of a "lecture" from the boss.

At the conclusion of the meeting, end on a positive note by emphasizing that

improving the employee's performance is a mutually beneficial goal. Offer a

written summary then or to be given to the employee later. Having a written

summary is particularly valuable if you will be trying something new or changing

any work assignment routine.

Keep notes for yourself documenting the date of the discussion and any specific

agreements you reached with the employee regarding changes to the way work is

assigned or structured.

Follow up! If the employee shows improvement, let him or her know it

immediately! If the employee appears to be still struggling, go back and talk

again.

Components of appraisal evaluation:

“WHO”of the appraisal?

The appraisal can be accomplished by one or more individuals involving a combination

of the immediate supervisor, other managers acquainted with the assesses work, a higher

level manager, a personal manager, the assesses peers, the assesses himself and the

assesses subordinates.



“WHAT” of appraisal?

The WHAT of the performance appraisal consists in appraising non supervisory

employees for their current performance and managers for future potential, It also

includes evaluation of human traits.

“WHY” of appraisal?

The why of an appraisal is concerned with?

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

present jobs.

Highlighting employee’s needs and opportunities for personnel growth and

development.

Aiding in decision making for promotions ,transfers, lay –offs and discharges

Promoting understanding between the supervisor and his subordinates.

Providing useful criteria for determining the validity of selection and training

methods and techniques and forming concrete measures for attracting individual

of higher caliber to the enterprise.

What should be rated?

The seven criteria for assessing performance are:

Quality:

The degree to which the process or result of carrying out an activity approaches

perfection.

Quantity:

The amount produced, expressed in monetary terms, number of units or number of

completed activity cycles.



Timeliness:

The degree to which an activity or result produced.

Cost effectiveness:

The degree to which the use of the organization resources (human, monetary,

technology, material) is maximized

Need for supervision:

The degree to which a job performer can carry out a job function with supervisory

assistance.

Interpersonal impact:

The degree to which a performer promotes feelings of self esteem, good will and co-

operation among co-workers and subordinates.

Training:

Need for training for improving employee skills knowledge.

The above criteria relate to past performance and behavior of an employee. There is also

the need for assessing the potential of an employee for future performance. Particularly

when the employee is tipped for assuming greater responsibilities.



CHAPTER -2

RESEARCH METHODOLOGY



INTRODUCTION

Appraising the performance of individuals, groups and organization is a common practice

of al societies. While in some instances these appraisal processes are structured and

formally sanctioned, in other instances they are an informal and integral part of daily life.

A performance is a process of evaluating an employee’s performance of a job in terms of

its qualification .It is a process of judging the values, qualities, excellence, qualities or

status of some object, person or thing.

Performance appraisal is the process of obtaining, analyzing and recording information

about the relative worth of an employee. The focus of the performance appraisal is

measuring and improving the actual performance of the employee and also the future

potential of the employee. Its aim is to measure what an employee does.

According to Flipper, “a prominent personality in the field of Human resources,

“performance appraisal is the systematic, periodic and an impartial rating of an

employee’s excellence in the matters pertaining to his present job and his potential for a

better job." Performance appraisal is a systematic way of reviewing and assessing the

performance of an employee during a given period of time and planning for his future”.

A performance appraisal is a systematic and periodic process that assesses an individual

employee’s job performance and productivity in relation to certain pre-established criteria

and organizational objectives. Other aspects of individual employees are considered as

well, such as organizational citizenship behavior, accomplishments, potential for future

improvement, strengths and weaknesses, etc.

To collect PA data, there are three main methods: objective production, personnel, and

judgmental evaluation. Judgmental evaluations are the most commonly used with a large

variety of evaluation methods.

The process by which a manager or consultant (1) examines and evaluates an employee’s

work behavior by comparing it with present standards, (2) documents the results of the

https://en.wikipedia.org/wiki/Organizational_citizenship_behavior



comparisons and (3)uses the results to provide feedback to the employee to show where

improvements are needed and why. Performance appraisals are employed to determine

who needs to determine who needs what training, and who will be promoted, demoted,

retained, or fired.

Historically, PA has been conducted annually (long-cycle appraisals); however, many

companies are moving towards shorter cycles (every six months, every quarter), and

some have been moving into short-cycle (weekly, bi-weekly) performance appraisal.

The interview could function as "providing feedback to employees, counseling and

developing employees, and conveying and discussing compensation, job status, or

disciplinary decisions". PA is often included in performance management systems. PA

helps the subordinate answer two key questions: first, "What are your expectations of

me?" second, "How am I doing to meet your expectations?"

https://en.wikipedia.org/wiki/Interview

https://en.wikipedia.org/wiki/Feedback

https://en.wikipedia.org/wiki/Performance_management



RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. In it,

step-by-step Research Methodology is a way to systematically solve the research

problem. In it, step-by-step methods are followed to solve a particular problem. It

refers to a search for knowledge. It can also be defined as a scientific and

systematic search for pertinent information on a specific topic. In fact, research is

an art of scientific investigation.

The methodology adopted for the present study was focus discussion, interview

and close observation through in-house study. Since the project is based on action

research it was necessary to build rapport to collect maximum information from

the Customers. Hence the research spent considerable time with the people who

reside in city. The main focus was to do with the assessing the satisfaction level of

customer and explore the possibility of more sound arrangement of disseminating

outlook information system.



METHODOLOGY TOOLS OF DATA

DATA SOURCES:

Primary data:

Primary data is the new or fresh data collected from the respondents through direct

interview using a pre-structured questionnaire.

Personal interview

Close observation

Secondary data:

Secondary data may be obtained from many sources, including literature, industry

surveys, compilations from computerized databases and information systems, and

computerized information.

Secondary data of this project is collected by following method-

Internet

Books

Company website.



Study or sampling design

Data Collection Instrument: Structured questionnaire

Sample size: 50

Sampling technique: Simple random sampling

Study area: Bangalore

Study period: 4 weeks



SCOPE OF THE STUDY

The study involves employee’s satisfaction on various dimensions. This study was

carried out at Medicon Leather pvt ltd Bangalore. The study of the report is limited to

Bommanahali branch.



LIMITATIONS OF THE STUDY

The results of the study cannot to be generalized as the data collected for the

study limited to Bangalore only.

The accuracy of the analyses and conclusion drawn entirely depends upon the

reliability of the information provided by the employees.

Time is the biggest constraint because the study period is just four weeks.

In the fast moving/changing employees behavior many new and better things

may emerge in the near future. Which cannot be safeguard in this report?

Respondent attitude may change time to time.



NEED FOR THE STUDY

Today’s business environment is highly competitive. Because of the sweeping effects of

change and competition, a great deal of importance has been placed on performance

management. In order to survive in today’s competitive world, to create a better place in

work organizations must have effective performance measures & process.

An organization performance & resulting productivity are directly proportional to the

quality of its training given. Training increases productivity & improves the quality of

work & morale. In order to improve the technical managerial & behavioral skills of

employees, training practices are adopted.

Every organization has its own practices to train its human resource, so a study was

conducted to find the strategies of performance management followed in Medicon

Leather Pvt Ltd.



OBJECTIVES OF THE STUDY

To enable an organization to maintain an inventory of the number and quality of

all the managers and to identify their training needs and aspirations.

To determine increments, rewards and positive a reliable index for promotions

and transfers to positions of greater responsibility.

To maintain individual and group developmental informing the employee of his

performance standards.

To suggest ways of improving the employee performance.

To identify the training and development needs.

To plan career development, human resource planning based on potentials.



CHAPTER-3

COMPANY PROFILE



INDUSTRY PROFILE

KMB Lifestyle

KMB life style was founded in 1988 as a manufacturing company catering to India’s

watch strap market. In a short while, KMB lifestyle rose to become India’s largest

producer of leather watch bands for OEMs. Found the brand, BULCHEE a Leather

accessory retailer through premium retail and well-known department stores. And retail

accessories of the Madura Group of Brands; Allen Solly, Louis Philippe and Van Heusen.

Today, KMBs expertise and strong merchandising knowledge of the Indian market has

led to the successful launch of a new, omnichannel retail fashion brand, COVO. A

bespoke fine diamond jewelry atelier, Clover. KMB Lifestyle continues to be a leader

today in innovating through distribution, brand and retail in the Indian market.

Bulchee, the premium accessories brand and one of the most dominant brands in the

multi brand stores like Shoppers stop, Lifestyle, Central, and landmark, is now

aggressively looking at opening its own branded retail stores. Recently, they opened an

exclusive store in form value mall Bangalore taking the count of their EBOs to five .

Bulchee is also looking at a brand extension and coming up with products aimed at 20-

25yrs old . they came with brand extension for youth in oct2010 . main products are belts,

wallets , ladies hang bags, the latest addition to their line is pure silk ties .



Bulchee Leather ware Pvt Ltd is a Private company incorporated on 07 June 1991. It is

classified as Indian Non-Government Company and is registered at Registrar of

companies, Mumbai.

Its authorized share capital is Rs. 500,000 and its paid up capital is Rs. 200,000. It is

involved in Tanning and dressing of leather, manufacture of luggage, handbags, wallet

etc…

The brand as been sourcing their designs and technologies for Italy and as tied up with

traditional crafts man around Italy . in the north Bulchee is well establish in Ludhiana

Amritsar jalandar .along with retail expansion , the brand is also looking at expanding its

port folio. In pipe line are cuff links socks, hand keens, and fashion jewellery. The brand,

which is doing well in Maharashtra with its presence in 38large departmental stores and

40metro shoes stores is now opening stand alone stores in ghatkopar and kandivali in

Mumbai.



Bulchee product line.

Wallet:

WATCH STRAP:



HAND BAG/PURSE

BELT

Apart from the organic growth of bulchee stores across India, the company is looking at

expanding its retail portfolio with a mix of international brands in the accessory space.



COMPANY PROFILE



Organization: Medicon Leather Pvt.Ltd.

Year of establishment: 1987

Managing Director: Mr. Neeta Sangieve Bulchandani.

Number of employees: 300

Quality Certification: ISO 9002

An ISO 9002 certified company, Medicon is among a handful of companies capable of

integrated manufacturing from processing of leather to product specifications and

international styling.

With its versatility in design prompted with a tool room equipped with a 3D machining

center and capable technical designers coordinating with our fashion designers ensure

you get a Medicon product of quality with contemporary design.

Medicon has built its expertise in end to end customer service, from brief to product

development and order to timely deliver through its online tracking system developed in

house.

Always keeping in mind the rapid change required by the market through studies on

international trends at important trade fairs, our team works closely with customers,

crafting to specification and fashion to realize the possible.

Most importantly, medicon has strong sourcing practice to support its quality and timely

delivery goals. These relationships forged over a decade form the foundation that enables

Medicon to achieve flexibility in its manufacturing programs that is so important in

today’s commercial environment.

This brings about a melting pot of the right elements of creativity, sourcing, quality and

cost focus driven by appropriate information systems enabling Medicon to delivery world

class products at sensible prices.



PRODUCT LINE

Medicon Pvt.Ltd. company deals in producing leather products or goods to

its customer .

Leather goods



Hand bags



Wallets

Waist Belts



Watch straps

Production capacity

Wallets: 9,000pcs./Month

Belts: 45,000pcs./Month

Watch Straps: 1,80,000pcs./Month

Leather Handbags: 3,000pcs./Month

PU Handbags: 2,000pcs./Month

This is the production capacity of Medicon Leather Pvt.Ltd. Company in producing or

manufacturing the products per month. This is the normal value in producing the products

per month but the production capacity varies according to the demand and the contract

between its customers as it deals with most reputed and branded company were the

production capacity may increase.



Major customers

India’s largest leather watch band unit with an excellent relationship with leaders in the

watch industry, both National and International.

Most of the products are sold through online websites such as Flipkart, Amazon

etc….These are the online sites which displays the product of the company.

The major customers for the watch parts are Titan, Timex, Wester, Shivaki and HMT.

These are the companies which are well known and reputed companies having a brand

name and goodwill nationwide, who are the customers of Medicon Leather Company.

This company also markets its accessories with other companies known for its Quality,

Brand and Goodwill. These companies are reputed and have craze among the youngsters

and other age group people.

Medicon Leather Company not only has its customers National wide but also exports its

product in International.

Medicon Leather products are not only popular in India but also in International.

Major Customers: Indian/Overseas:

Watch Parts: Titan, Timex, Wester, Shivaki and HMT

Accessories: Titan-Fastrack, Arrow, Lee, Allen Solly, Park Avenue, Benetton,

Ripcurl.

Exports to : HK, UAE

Major items of export: Leather goods, Watch parts.



COMPANY MISSION AND VISSION

VISION:

Completion of all pending projects funded by company.

Establishment and up gradation of technology.

Introduction of new models according to trend.

Medicon Leather Company shall deliver Everything, Everywhere, Every time for

every customer in the most profitable manner.

MISSION:

We will be the trendsetters in evolving delivery formats, making consumption

affordable for all customers segments for classes and for masses.

We shall infuse Indian brands with confidence and renewed ambition.

We shall be efficient, cost-conscious and committed to quality in whatever we do.

We shall ensure that our positive attitude, sincerity. Humility and united

determination shall be the driving force to make us successful.



SWOT ANALYSIS

Strengths:

Medicon Leather pvt ltd has effective and hard working personnel to carry

the activities of organization.

Medicon Leather pvt ltd has flexible plans, which can make the corporation

more professional.

Weakness:

High cost structure.

Inability to adopt the latest technique.

Opportunities:

Changing attitude of people towards westernization and trends

People have high income, so they are ready to spend on leather products.

Threats:

High competition with private companies.

People are attracted towards other company products due to innovation

according to trend.



CHAPTER- IV

DATA ANALYSIS & INTERPRETATION



DATA ANALYSIS AND INTERPRETATION

1) Method of performance appraisal

Table-4.1: Method of performance appraisal.

Options No. of respondents

% of responses

Merit 15 30%

Grading 30 60%

Other 5 10%

TOTAL 50 100%

Graph:-4.1:-Awareness about Annual confidential report.

INTERPRETATION:-

1. 30% of the respondents agreed that Merit method of PA is applied.

2. 60% of the respondents agreed that grading method of PA is applied.

3. 10% of the respondents agreed that other method of PA is applied.

15

30

5

0

5

10

15

20

25

30

35

Merit Grading Other

No. of respondents

No. of respondents



2. PA to set and achieve meaningful goals

Table-4.2: Criteria to set and achieve meaningful goals.

Option No. of respondents

% of responses

Yes 35 70%

No 15 30%

Total 50 100%

Graph:-4.2:- Criteria to set and achieve meaningful goals.

INTERPRETATION:-

1. 70% of respondents agreed it will help to set and achieve goals.

2. 30% of respondents disagreed it won’t help to set and achieve goals.

35

15

0

5

10

15

20

25

30

35

40

Yes No

No. of respondents

No. of respondents



3. Performance appraisal successful in identifying abilities.

Table-4.3: Identifying employee abilities through performance appraisal


% of responses

Yes 35 70%

No 15 30%

TOTAL 50 100%

Graph:-4.3:- Identifying employee abilities through performance appraisal

INTERPRETATION:-

1. 70% of the respondents agreed that recent performance appraisal identify their

abilities.

2. 20% of the respondents agreed that recent performance appraisal not identify their

abilities.

30

15

0

5

10

15

20

25

30

35

40

Yes No

No. of respondents

No. of respondents



4) Participation in performance counseling session.

Table-4.4: Employee participation during performance counseling session.


% of responses

Reporting officer 10 20%

Myself 18 36%

Both equally 22 44%

Total 50 100%

Graph:-4.4:- Employee participation during performance counseling session.

INTERPRETATION:-

1. 20% of the respondents agreed that the repotting officer talked more during

performance counseling session.

2. 36% of the respondents agreed that they would be talked more during

performance counseling session.

3. 44% of the respondents agreed that both the repotting officer & them talked more

during performance counseling session.

10

18

22

0

5

10

15

20

25

Reportingofficer

Myself Both equally

No. of respondents

No. of respondents



5. Performance appraisal process supports culture and values

Table-4.5 PA process supports culture and values.


% of responses

Yes 32 64%

No 18 36%

Total 50 100%

Graph:-4.5. PA process supports culture and values.

INTERPRETATION:-

1. 64% of the respondents agreed that with performance appraisal it supports culture

and values

2. 36% of the respondents not agreed that with performance appraisal it supports

culture and values

32

18

0

5

10

15

20

25

30

35

Yes No

No. of respondents

No. of respondents



6. Purpose of Performance appraisal.

Table-4.6: Purpose of performance appraisal in Medicon leather pvt.ltd.


% of responses

Promotions 20 40%

Increments 10 20%

Career development 16 32%

Training 4 8%

TOTAL 50 100%

Graph:-4.6: Purpose of performance appraisal in Medicon leather pvt.ltd

INTERPRETATION:-

1. 40% of the respondents agreed that the performance appraisal is for promotions

purpose.

2. 20% of the respondents agreed that the performance appraisal is for increments

purpose.

3. 32% of the respondents agreed that the performance appraisal is for career

development. Purpose.

4. 8% of the respondents agreed that the performance appraisal is for training

purpose.

20

10

16

4

0

5

10

15

20

25

PromotionsIncrementsCareer developmentTraining

No. of respondents

No. of respondents



7. Performance appraisal process helps to raise organizational output.

Table-4.7: Performance appraisal process helps to raise organizational output.


% of responses

Yes 37 74%

No 13 26%

Total 50 100

Graph:-4.7:- Performance appraisal process helps to raise organizational output.

INTERPRETATION:-

1. 74% respondents agree Performance appraisal process helps to raise organizational

output.

2. 26% respondents disagree performance appraisal process helps to raise organizational

output.

37

13

0

5

10

15

20

25

30

35

40

Yes No

No. of respondents

No. of respondents



8 .Area of performance rated.

Table-4.8: Area of performance rated.


% of responses

The main areas of work

assigned

23 46%

Individual general qualities 13 26%

Both 14 28%

TOTAL 50 100%

Graph:-4.8:- Area of performance rated.

INTERPRETATION:-

1. 46% Respondents agrees the area of performance rated according to the main areas of

work assigned.

2. 26% Respondents agrees the area of performance rated according to individual

qualities.

3. 28% Respondents agrees both.

23

13 14

0

5

10

15

20

25

The mainareas of work

assigned

Individualgeneralqualities

Both

No. of respondents

No. of respondents



9. Express of difficulties and problems regarding Key Performance Area.

Table-4.9: Express of difficulties and problems regarding KPA


% of responses

Yes, all difficulties without

any problems.

18 36%

Most of them 13 26%

Only a few of them 16 32%

Not at all 3 6%

Total 50 100%

Graph:-4.9:- Express of difficulties and problems regarding KPA

INTERPRETATION:-

1. 36% Respondents agrees they express all difficulties without any problems regarding

KPA.

2. 26% Respondents agrees most of the problems and difficulties are expressed regarding

KPA.

3. 32% Respondents agrees only a few of the problems and difficulties are expressed

regarding KPA.

4. 6% Respondents they not at all express difficulties and problems regarding KPA.

18

13

16

3

02468

101214161820

Yes, alldifficulties

withoutany

problems.

Most ofthem

Only a fewof them

Not at all

No. of respondents

No. of respondents



10. Performance appraisal method or technique.

Table-4.10: Methods of performance appraisal followed in Medicon Leather pvt.ltd.


% of responses

Behaviorally anchored

rating scales[BARS]

18 36%

360 degree PA 24 48%

Assessment centre 03 6%

Management by objective 05 10%

TOTAL 50 100%

Graph:-4.10:- Methods of performance appraisal followed in Medicon Leather

pvt.ltd.

INTERPRETATION:-

1. 36% Respondents agrees behaviorally anchored rating scales method is followed.

2. 48% Respondents agrees 360 degree PA is followed.

3. 6% Respondents agrees assessment centre is followed.

4. 10% Respondents agrees MBO is followed.

18

24

35

0

5

10

15

20

25

30

Behaviorally anchored rating scales[BARS]360 degree PAAssessment centreManagement by objective

No. of respondents

No. of respondents



11. Performance rate of employees

Table-4.11: Employees performance rate.


% of responses

Excellent 18 36%

Satisfied 32 64%

Dissatisfied 0 0%

No comments 0 0%

TOTAL 50 100%

Graph:-4.11:- Performance rate of employees

INTERPRETATION:-

1. 36% Respondents agrees their performance rate is excellent.

2. 64% Respondents agrees their performance rate is Satisfied.

18

32

0 00

5

10

15

20

25

30

35

Excellent Satisfied DissatisfiedNo comments

No. of respondents

No. of respondents



12. Constructive feedback of performance

Table-4.12: Constructive feedback of performance


% of responses

Yes 38 76%

No 12 24%

TOTAL 50 100%

Graph:-4.12. Constructive feedback of performance

INTERPRETATION:-

1. 76% Responders agrees they get constructive feedback about their performance.

2. 24% Responders doesn’t agree they get constructive feedback.

38

12

0

5

10

15

20

25

30

35

40

Yes No

No. of respondents

No. of respondents



13. Promotion system in Medicon leather pvt.ltd.

Table-4.13: Promotion system in Medicon leather pvt.ltd.


% of responses

Merit 33 66%

Seniority 8 16%

Both 9 18%

TOTAL 50 100%

Graph:-4.13: Promotion system in Medicon leather pvt.ltd.

INTERPRETATION:

1. 66% Responders agrees promotional system is on merit basis.

2. 16%Responders agrees promotional system is on seniority basis.

3. 9% Responders agrees promotional system is on both basis.

33

8 9

0

5

10

15

20

25

30

35

Merit Seniority Both

No. of respondents

No. of respondents



14. Employees opinion on job rotation.

Table-4.14: Employees opinion on job rotation.


% of responses

Yes 32 64%

No 18 36%

TOTAL 50 100%

Graph:-4.14: Employees opinion on job rotation.

INTERPRETATION:-

1. 64% Responders agrees on job rotation.

2. 36%Responders doesn’t agree on job rotation.

32

18

0

5

10

15

20

25

30

35

Yes No

No. of respondents

No. of respondents



15. Factors of performance evaluated.

Table-4.15: Performance evaluation

Options No. Of respondents

% of responses

Job knowledge 7 14%

Quantity of work 3 6%

Punctuality 8 16%

Customer

contact

4 8%

All 28 56%

TOTAL 50 100%

Graph:-4.15:- Performance evaluation.

INTERPRETATION:

1. 56%Responders agrees performance evaluation is on Job knowledge, Quantity of

work, Punctuality, Customer contact and all.

2. 14% Responders agree on job knowledge.

3. 6% Responders agree on Quality of work.

4. 16% Responders agree on Punctuality.

5. 8% Responders agree on Customer contact.

7

3

8

4

28

0

5

10

15

20

25

30

No. Of respondents

No. Of respondents



16. Employees opinion on Performance Appraisal.

Table-4.16: Employee opinion on PA


% of responses

True reflection of our

performance

20 40%

Influenced appraisal

opinion

22 44%

Always away from reality 8 16%

TOTAL 50 100%

Graph:-4.16: Employee opinion on PA

INTERPRETATION:-

1. 44% Responders agrees on influenced appraisal opinion.

2. 40% Responders agrees on true reflection of performance.

3. 16% Responders agrees on always away from reality.

2022

8

0

5

10

15

20

25

Truereflection of

ourperformance

Influencedappraisalopinion

Always awayfrom reality

No. of respondents

No. of respondents



17. Employees being appraised during working period.

Table-4.17: Employees being appraised during working period.


% of responses

Yes 43 86%

No 7 14%

TOTAL 50 100%

Graph:-4.17:- : Employees being appraised during working period.

INTERPRETATION:-

1. 86% Responders agrees on being appraised.

2. 14% Responders agrees being not appraised.

43

7

0

5

10

15

20

25

30

35

40

45

50

Yes No

No. Of respondents

No. Of respondents



18. Change after appraising performance.

Table-4.18: Change after appraising performance.


% of responses

Yes 32 70%

No 18 36%

TOTAL 50 100%

Graph:-4.18: Change after appraising performance.

INTERPRETATION:-

1. 70% Responders agrees being changed after appraising performance.

2. 36% Responders agrees not being changed after appraising performance.

32

18

0

5

10

15

20

25

30

35

Yes No

No. of respondents

No. of respondents



19. Transfer, Demotion, Suspension and Dismissal is based on PA

Table-4.19: Transfer, Demotion, Suspension and Dismissal is based on PA


% of responses

Yes 43 86%

No 7 14%

TOTAL 50 100

Graph:-4.19:- . Transfer, Demotion, Suspension and Dismissal is based on PA

INTERPRETATION:-

1. 86% Responders agrees Transfer, Demotion, Suspension and Dismissal is based on

PA.

2. 14% Responders doesn’t agrees Transfer, Demotion, Suspension and Dismissal is

based on PA.

43

7

0

5

10

15

20

25

30

35

40

45

50

YES NO

No. of respondents

No. of respondents



20. Personal bias creeps during performance appraisal.

Table-4.20:- Personal bias creeps during performance appraisal.


% of responses

Yes 27 54%

No 23 46%

TOTAL 50 100%

Graph:-4.20: Personal bias creeps during performance appraisal

INTERPRETATION:-

1. 54% Responders agrees Personal bias creeps during performance appraisal.

2. 46% Responders doesn’t agree Personal bias creeps during performance appraisal.

27

23

21

22

23

24

25

26

27

28

Yes No

No. Of respondents

No. Of respondents



CHAPTER-5

FINDINGS, SUGGESTION, CONCLUSION



FINDINGS

Purpose of performance appraisal system in Medicon leather pvt.ltd is for

promotions and career development

Four methods are followed for performance appraisal they are

a. Behaviorally anchored rating scales.

b. Assessment centre.

c. 360 degree PA.

d. Management by objective.

Reward system is not implemented effectively.

Performance appraisal method creates a suitable environment in the organization.

A few of Training and development programs help [in improving the performance

of the employees in the organization].

Most of the employees get sufficient benefits from performance counseling

sessions.

Performance appraisal increases the output of organization.

Performance appraisal supports values and culture

The individual performance rate is calculated base on both individual general

qualities & the main areas of work assigned to them.



SUGGESTIONS

The existence of an atmosphere of confidence and trust so that both supervisor and

employee may discuss matters frankly and off suggestions which may be beneficial for

the organizations and for an improvement of the employee.

The supervisor should thoroughly evaluate the employee’s performance so that he

is capable of meeting challenges about has ratings of his subordinates.

The supervisor should try to analyze the strengths and weakness of an employee

and advise him on correcting the weakness.

The appraisal program should be less time consuming and less costly. At the same

time, it should bring the maximum benefit.

The results of the appraisal, particularly when they are negative, should be

immediately communicated to the employees, so that they may try to improve

their performance.

A post appraisal should be arranged so that employees may be supplied with

feedback and the organization may know the difficulties under which employees

work, so that their training needs may be discovered.

Provide employees with a sense of their work accomplishment relative to

expectation and predefined indicators.

Support employee development through discussion of assigned opportunities and

training.

Avoid surprises, keep lines of communication opens.

Provide the option of document performance in a narrative format relative to

specific accomplishment during the review period.



CONCLUSION

It is here by concluded that the performance appraisal process in Medicon leather pvt.

Ltd. is found to be well defined and is appropriate and is tied directly to the organization

objectives and strategies following a set criteria.

The Head of the department and controlling officers have selected the best available

employees for promotions. No discrepancies are observed. The employees are given

promotions and other benefits. They do not seem to have grievance with regard to the

promotions. There is a cordial atmosphere prevalent in the organization developed with

good work culture. All this is due to well-ordered performance. In Medicon leather

pvt.ltd. The appraisal process will helpful to the career development of the employs.



ANNEXURE



QUESTIONNAIRE

Name of Respondent:

Age:

Designation:

Introduction & purpose

I Veena kumara.k, doing my BBM from SILICON CITY COLLEGE OF

MANAGEMENT AND COMMERCE which is affiliated under BANGALORE

UNIVERCITY. As a part of my course iam doing a project on ‘A STUDY ON

EMPLOYEE PERFORMANCE APPRAISAL’. I request you to extend your earnest

cooperation in filling this questionnaire. The information furnished by you is purely for

my academic purpose only and is kept confidential.

1. Which method of performance appraisal is implemented in the organization? ( )

(a)Merit

(b) Grading

(c) Other

2. Do you think PA helps people set and achieve meaning goals? ( )

(a)Yes

(b) No

3. The recent performance appraisal was successful in identifying your abilities. ( )

(a) Yes

(b) No

4. Who talked more during the interview? ( )

(a) Reporting officer

(b) Myself

(c) Both equally



5. Your performance appraisal process supports your culture and values. ( )

(a) Yes

(b) No

6. What is the purpose of performance appraisal in APTDC? ( )

(a) Promotions

(b) Increments

(c) Career development

(d) Training

7. Does PA process help to raise organization total output? ( )

(a) Yes

(b) No

8. Base on which area your performance will be rated? ( )

(a) The main areas of work assigned to you

(b) On individual general qualities

(c) Both

9. Have you been able to express all the difficulties & problems you had been facing

regarding your job and achievements of key performance areas (K.P.A)? ( )

(a) Yes, all difficulties without any problems

(b) Most of them

(c) Some of them

(d) Only a few of them

(e) Not at all



10. Which Method is followed for measuring performance appraisal in Medicon Leather

pvt.ltd? ( )

(a) Behaviorally anchored rating scales [BARS]

(b) Assessment centre

(c) 360 degree PA

(d) Management by objective

11. How do you rate your performance? ( )

(a) Excellent

(b) Satisfied

(c) Dissatisfied

(d) No comments

12. Does your performance appraisal system give constructive feed-back to you about

your performance? ( )

(a) Yes

(b) No

13. Does your company go by with respect to promotions? ( )

(a) Merit

(b) Seniority

(c) Both

14. Do you feel that job rotation will help in increasing the performance? ( )

(a) Yes

(b) No



15. On what factors your performance is evaluated? ( )

(a) Job knowledge

(b) Quantity of work

(c) Punctuality

(d) Customer contact

16. In your opinion performance appraisals are? ( )

(a) True reflections of our performance

(b) Influenced appraisal opinion

(c) Always away from reality

17. Number of employees being appraised during their working period. ( )

(a) Yes

(b) No

18. Does any change arise after appraising the performance of employees? ( )

(a) Yes

(b) No

19. What is your opinion about the fixation of performance standards? ( )

(a) Totally agree

(b) Agree

(c) Totally disagree

(d) Disagree

(e) No comments

20. Does personal bias creeps in while appraising an employee. ( )

(a) Yes

(b) No



BIBLIOGRAPHY

1) Mamoria C.B., PERFORMANCE APPRAISAL, Himalaya publishing House

Bombay,1999 .

2) Aswatappa.K., HUMAN RESOURCE MANAGEMENT.

3) Subba Rao.P., ESSENTIAL HUMAN RESOUCE MANAGEMENT&INDUSTRIAL

RELATIONS, Himalaya publishing House, Bombay, 1996.

4) T.V.Rao., DEVELOPING&APPRAISING MANAGEMENT

Web sites:-

www.kmbgroup.in

www.wikipedia.com

http://www.kmbgroup.in/

veena performance appraisal project_3 (3)

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