research report

Table of Contents
CHAPTER DESCRIPTION PAGE NOS.
1.
EXECUTIVE SUMMARY
2.
INTRODUCTION
3.
RESARCH METHODOLOGY
4.
COMPANY PROFILE
5.
DATA ANALYSIS & INTERPRETATION
6.
FINDINGS
7.
SUGGESTIONS AN CONC!USIONS
".
ANNEXURES
#.
BIOLIOGRAPHY
E$ECUTI%E SU&&AR'
The performance appraisal system ideally is an organisation designed programme involving both
the organisation and the personnel to improve the capability of both. The elements of
performance management include: purpose, content, method,appraiser, frequency, and feedback.
The appraisal process involves determining and communicating to an employee how he or she is
performing the job and establishing a plan of improvement. The information provided by
performance appraisal is useful in three major areas: compensation, placement, and training and
development. Appraisal helps to improve performance by identifying the strengths and
weaknesses; it helps to identify those with a potential for greater responsibility; and assists in
deciding on an equitable compensation system. The methods of performance appraisal include
rating scale, critical incident, ranking methods, and management by objectives. everal common
errors have been identified in performance appraisal. !eniency occurs when ratings are grouped
at the positive "end instead of being spread throughout the performance scale. The central
tendency occurs when all or most employees are ranked in the middle of the rating scale. The
halo effect occurs when a manager allows his or her general impression of an employee to
influence judgment of each separate item in the performance appraisal. A sound appraisal system
involves assessing employee performance on a regular basis. #erformance appraisal can be done
by superiors who rate subordinates, subordinates who rate their superiors, and self$appraisal. A
suitable performance appraisal system has to be designed keeping in view the culture and
requirements of an organisation.
T'PES O( PER(OR&ANCE APPRAISA!
There are two types of performance appraisal systems which are normally used in organisations:
? close ended appraisal system,
? open ended appraisal system.
#erformance appraisal has always been a hot and challenging issue for the managers across the
world, %& managers as well as the line managers. These caselets discuss some of the common
issues in designing and implementing a performance appraisal system. 'ne of the caselets
discusses not just performance appraisal, but the broader issue of performance management. The
method of appraising using the balanced scorecard approach has been discussed in the last
caselet.
INTROUCTION
#erformance appraisal is a systematic evaluation of present potential capabilities of personnel
and employees by their superiors, superior(s superior or a professional from outside. )t is a
process of estimating or judging the value, e*cellent qualities or status of a person or thing. )t is a
process of collecting, analysing, and evaluating data relative to job behaviour and results of
individuals. The appraisal system is organised on the principle of goals and management by
objectives. +anagement decisions on performance utilise several integrated inputs: goals and
plans, job evaluation, performance evaluation, and individual history. )t connotes a two$
dimensional concept $ at one end of the continuum lies the goals set by the authority, and at the
other end, the performance achieved by the individual or any given group.
#erformance appraisal can be either formal or informal. ,sage of former systems schedule
regular sessions in which to discuss an employee(s performance. )nformal appraisals are
unplanned, often just chance statements made in passing about an employee(s performance. +ost
organisations use a formal appraisal system. ome organisations use more than one appraisal
system for different types of employees or for different appraisal purposes. 'rganisations need to
measure employee performance to determine whether acceptable standards of performance are
being maintained. The si* primary criteria on which the value of performance may be assessed
are: quality, quantity, timelineness, cost effectiveness, need for supervision, and interpersonal
impact. )f appraisals indicate that employees are not performing at acceptable levels, steps can be
taken to simplify jobs, train, and motivate workers, or dismiss them, depending upon the reasons
for poor performance.
The results of appraisal are normally used to:
-./ estimate the overall effectiveness of employees in performing their jobs,
-0/ identify strengths and weaknesses in job knowledge and skills,
-1/determine whether a subordinate(s responsibilities can be e*panded,
-2/ identify future training and development needs,
-3/ review progress toward goals and objectives,
-4/ determine readiness for promotion, and
-"/ motivate and guide growth and development.
O)*ECTI%ES O( PER(OR&ANCE APPRAISA!
#erformance appraisal plans are designed to meet the needs of the organisation and the
individual. )t is increasingly viewed as central to good human resource management. This is
highlighted in 5umming(s classification of performance appraisal objectives. According to
5ummings and chwab -.6"1/, the objectives of performance appraisal schemes can be
categorised as either evaluative or developmental. The evaluative purpose have a historical
dimension and are concerned primarily with looking back at how employees have actually
performed over a given time period, compared with required standards of performance.
The developmental performance appraisal is concerned, for e*ample, with the identification of
employees( training and development needs, and the setting of new targets.
The broad objectives of performance appraisal are:
.. To help the employee to overcome his weaknesses and improve his strengths so as to enable
him to achieve the desired 7performance.
0. To generate adequate feedback and guidance from the immediate superior to an employee
working under him.
1. To contribute to the growth and development of an employee through helping him in realistic
goal setting.
2. To provide inputs to system of rewards -comprising salary increments, transfers, promotions,
demotions or 7terminations/ and salary administration.
3. To help in creating a desirable culture and tradition in the organisation.
4. To help the organisation to identify employees for the purpose of motivating, training and
developing them.
". To generate significant, relevant, free, and valid 7information about employees.
)n short, the performance appraisal of an organisation provides systematic judgments to backup
wage and salary administration; suggests needed changes in one(s behaviour, attitudes, skills, or
job knowledge; and uses it as a base for coaching and counseling the individual by his superior.
Appraising employee performance is, thus, useful for compensation, placement, and training and
development purposes.
USES O( PER(OR&ANCE APPRAISA!
The appraisal systems do not operate in isolation; they generate data that can contribute to other
%&+ systems $ for e*ample to succession planning and manpower planning.ome of the
common uses of appraisals include:
? 8etermining appropriate salary increases and bonuses for workers based on performance
measure.
? 8etermining promotions or transfers depending on the demonstration of employee
strengths and weaknesses.
? 8etermining training needs and evaluation techniques by identifying areas of
weaknesses.
? #romoting effective communication within organisations through the interchange of
dialogue between supervisors and subordinates.
? +otivating employees by showing them where they stand, and establishing a data bank
on appraisal for rendering assistance in personnel decisions.
'rganisations use performance appraisals for three purposes: administrative, employee
development, and programme assessment. #rogramme appraisal commonly serve an
administrative purpose by providing employers with a rationale for making many personnel
decisions, such as decisions relating to pay increases, promotions, demotions, terminations and
transfers. 9alid performance appraisal data are essential to demonstrate that decisions are based
on job related performance criteria. An employee(s performance is often evaluated relative to
other employees for administrative purposes, but may be assessed in relation to an absolute
standard of performance. #erformance appraisal for employee development purposes provides
feedback on an employee(s performance. The intent of such appraisals is to guide and motivate
employees to improve their performance and potential for advancement in the organisation.
Appraisal data can also be used for employee development purposes in helping to identify
specific training needs of individuals. #rogramme assessment requires the collection and storage
of performance appraisal data for a number of uses. The records can show how effective
recruiting, selection, and placement have been in supplying a qualified workforce. #erformance
measures can be used to validate selection procedures and can also be used as:before: and
;after: measures to determine the success of training and development programmes. )n brief, the
various uses of performance appraisal can be classified into two broad categories. 'ne category
concerns the obtaining of evaluation data on employees for decision$making for various
personnel actions such as pay increases, promotions, transfers, discharges, and for selection test
validation. The other main use is for employee development including performance improvement
training, coaching, and counseling.
P!ANNING THE APPRAISA!
A meaningful performance appraisal is a two$way process that benefits both the employee and
the manager. <or employees, appraisal is the time to find out how the manager thinks they are
performing in the job. <or a manager, a formal appraisal interview is a good time to find out how
employees think they are performing on the job. The planning appraisal strategy has to be done:
Before the appraisal
.. =stablish key task areas and performance goals.
0. et performance goals for each key task area.
1. >et the facts.
2. chedule each appraisal interview well in advance.
During the appraisal
. =ncourage two$way communication.
0. 8iscuss and agree on performance goals for the future.
1. Think about how you can help the employee to achieve more at work.
2. &ecord notes of the interview.
3. =nd the interview on an upbeat note.
After the appraisal
.. #repare a formal record of the interview.
0. +onitor performance.
APPROACHES TO PER(OR&ANCE APPRAISA!
>eorge 'diorne has identified four basic approaches to performance appraisal.
Personality-based systems: )n such systems the appraisal form consists of a list of personality
traits that presumably are significant in the jobs of the individuals being appraised. uch traits as
initiative, drive, intelligence, ingenuity, creativity, loyalty and trustworthiness appear on most
such lists.
Generalised descriptive systems: imilar to personality$based systems, they differ in the type of
descriptive term used. 'ften they include qualities or actions of presumably good managers:
;organises, plans, controls, motivates others, delegates, communicates, makes things happen,:
and so on. uch a system, like the personality$based system, might be useful if meticulous care
were taken to define the meaning of each term in respect to actual results.
Behavioural descriptive systems: uch systems feature detailed job analysis and job descriptions,
including specific statements of the actual behaviour required from successful employees.
Results-centred systems: These appraisal systems -sometime called work$centred or job$centred
systems/ are directly job related. They require that manager and subordinate sit down at the start
of each work evaluation period and determine the work to be done in all areas of responsibility
and functions, and the specific standards of performance to be used in each area.?hen
introducing performance appraisal a job description in the form of a questionnaire has to be
preferred. A typical questionnaire addressed to an individual would cover the following points:
? ?hat is your job title@
? To whom are you responsible@
? ?ho is responsible to you@
? ?hat is the main purpose of your job@
? To achieve that purpose what are your main areas of responsibility@
? ?hat is the siAe of your job in such terms of output or sales targets, number of items
processed, number of people managed, number of customers@ ?hat targets or standards
of performance have been assigned for your job@ Are there any other ways in which it
would be possible to measure the effectiveness with which you carry out your job@
? )s there any other information you can provide about your job@
CO&PONENTS O( PER(OR&ANCE APPRAISA!
The components that should be used in a performance appraisal system flow directly from the
specific objectives of appraisal. The following components are being used in a number of )ndian
organisations.
.. Bey #erformance Areas -B#As/ C Bey &esult Areas -B&As/
0. TasksCtargetsCobjectives; attributesCqualitiesCtraits
1. elf appraisal
2. #erformance analysis
3. #erformance ratings
4. #erformance review, discussion or counseling
". )dentification of training C development needs
D. &atings C assessment by appraiser
6. Assessment C review by reviewing authority
.E. #otential appraisal.
T'PES O( PER(OR&ANCE APPRAISA!
There are two types of performance appraisal systems which are normally used in organisations:
? close ended appraisal system,
? open ended appraisal system.
)n the close ended appraisal system, commonly used in government organisations and public
enterprises, a confidential report is submitted on the performance of the employee. 'nly where
an adverse assessment is made against an individual, the concerned individual is informed about
the same. The main shortcoming of this system is that an individual is not informed about hisCher
inherent strengths and weaknesses and, therefore, is not given an opportunity to respond to the
assessment made on himCher. The employees are, therefore, in a constant dilemma as to how
their performance is viewed by the management. )n the open ended appraisal system, unlike in
the close ended system, the performance of the individual is discussed with him, and he is ranked
in a five or ten point rating scale. The company uses this tool primarily for rewarding a good
performer or for other considerations like promotions. The main weakness of this system is that
all the employees are ranked in a particular scale, and whereas the good performers are
rewarded, there is no concerted effort to motivate the average performers in performing better.
Another weakness of the grading system is that the appraisal may turn out to be more subjective
in nature due to insufficient data maintained on the individual. This system also leads to
unnecessary comparisons made on different individuals performing similar jobs. #erformance
appraisal can be a closed affair, where the appraises do not get any chance to know or see how
they have been evaluated; or it can be completely open, where the appraises have the opportunity
of discussing with their superiors during the evaluation e*ercise.
STEPS IN THE APPRAISA! PROGRA&&E
As in other personnel programmes, performance appraisal forms a line responsibility to be
accomplished with advice and help of the personnel department. )ndeed, the appraisal
programme is likely to be an utter failure if it lacks the support of top management; if superiors
are not adequately trained, or have no trust in its value; if the results of appraisal are not
discussed with the subordinates; and if the appraisal is not used to serve the purposes it is meant.
#igors and +yers suggest several steps to develop and administer the programme effectively.
.. The personnel department may attempt to obtain as much as possible the agreement of line
management in respect of the needs and objective of the programme. A choice has to be made
among different kinds of appraisal methods judiciously.
0. The personnel department has to e*amine the plans of other organisations as well as the
relevant literature in the field to formulate the most suitable plan for the appraisal programme.
1. Attempts should be made to obtain the co$operation of supervisors in devising the appraisal
form and discuss with them the different factors to be incorporated, weights and points to be
given to each factor, and description or instructions to be indicated on the form.
2. The personnel or industrial relations manager tends to e*plain the purpose and nature of the
programme to all the superiors and subordinates to be involved and affected by it. 5are should be
taken to take into confidence the representatives of the union, if it e*ists in the company.
3. Attempt is to be made to provide intensive training to all the supervisors with a view to
obtaining unbiased and uniform appraisal of their subordinates.
4. 5are may be taken to acquire line and staff co$ordination and mutual checking of appraisals
with a view to achieving intra and inter$departmental consistency and uniformity.
". There should be an arrangement for periodic discussion of the appraisal by the superior with
each of the subordinates where attempts may be made to stress good points, indicate difficulties,
and encourage improved performance.
=*plicitly, in this conte*t, the discussion should be in the form of a progress review and every
opportunity should be given to the subordinate to e*press himself, if he feels that the appraisal
has been biased and that it should be otherwise.
D. As soon as the appraisal has been duly discussed, attempts may be made to recommend for
salary increases or promotion, if these decisions seem plausible in the light of appraisals.
6. There should be provision for challenge and review of appraisals, if the employees or their
union representatives are dissatisfied with the personnel decisions which the management has
taken on the basis of these appraisals.
These steps, if followed carefully, are likely to help the superiors to evaluate their subordinates
effectively.
&ETHOS O( PER(OR&ANCE APPRAISA!
trauss and ayles have classified performance appraisal into three groups: traditional
performance rating, newer$rating method, and result$oriented appraisal. A brief description of
each is as follows:
-a/ Traditional Performance Rating: Traditional rating involves a completion of a form by the
immediate supervisor of the individual who is being evaluated. )n some cases, attempts are made
to accomplish the rating by a committee consisting of the immediate supervisor, the supervisor(s
superior and one or two more officers of the company who are familiar with the rates. Although
ratings by the committee bring several viewpoints together and overcome the superior(s bias, if
any, they are highly time$consuming. The conventional rating scale form incorporates several
factors, such as, job knowledge, judgment, organising ability, dependability, creativity, dealing
with people, delegation, and leadership. The rating is assigned by putting a tick mark
horiAontally. <requently, descriptive phrases are given in the form to guide the rater while
evaluating the rates. This method is very simple to understand and easy to apply. 'n the basis of
ratings on specific factors, it is possible to identify areas in which the individual requires further
development. The ratings on specific factors can be summated to obtain a composite
performance score. The merit$rating scales are frequently criticised from the standpoints of
clarity in standards, differing perceptions, e*cessive leniency or strictness, the central tendency,
the halo effect, and the impact of an individual(s job. The basic criticism of the traditional
performance rating is concerned with its emphasis on personality traits instead of job
performance. uch rating is highly subjective in the absence of objective standards.'ther
criticisms of traditional performance rating relates to: <irst, there is a divergence of opinion
among raters as to what is meant by such standards as ;unsatisfactory:, ;good: and so on.
econd, there may be divergent perceptions and accordingly, different standards of judgments
among the raters. Third, the raters may be susceptible to e*cessive leniency or strictness error.
<ourth, there is an error of central tendency involving a cluster of ratings near the middle of the
scale. <ifth, there is a chance of the occurrence of a halo effect. i*th, there is a tendency on the
part of the raters to assign high ratings to individuals holding high paid jobs.
-b/ Newer Rating Methods: Fecause of several inadequacies in the traditional rating scale,
attempts have been made to devise new procedures which are less susceptible to the above
weaknesses. Among these are included rank order, paired comparison, forced distribution forced
choice, critical incident and field review. These methods are discussed below:
-i/ The Ran-order Procedure: )t is effective where ten or lesser number of individuals are to be
evaluated. According to this procedure, each individual is assigned such ranks as first, second,
third and so on. )f the evaluation process involves several traits, the ranking is made separately
for each trait. Although this method is simple to understand and easy to apply, this technique
becomes cumbersome and difficult when a large number of employees are to be evaluated in the
organisation.
-ii/ Paired-comparison !ystem": ,nder this, each individual is compared with every other
individual. The appraiser is required to put a tick$mark against the name of the individual whom
he considers better on the trait in question. The final ranking is determined by the number of
times he is judged better than the other. This method becomes complicated when the number of
individuals for evaluation is large.
-iii/ The #orced $istribution Procedure: )t is a form of comparative evaluation in which an
evaluator rates subordinates according to a specified distribution. %ere judgments are made on a
relative basis, i.e., a person is assessed relative to his performance in the group he works. This
procedure can be used for numerous traits if required by evaluating the individuals separately on
each trait. The forced distribution method is primarily used to eliminate rating errors such as
leniency and central tendency.
-iv/ The #orced %hoice Techni&ue: )t forces the rater to select from a series of several statements
or traits, the one which best fits the individual and one which least fits, and each of these
statements is assigned a score. ince the appraiser does not know the score value of statements,
this method prevents the rater from deliberately checking only the most favourable trait.
+oreover, the appraiser is unable to introduce personal bias into the evaluation process because
he does not know which of the statements is indicative of effective performance. This enhances
the overall objectivity of this procedure. %owever, it is a costly technique and also difficult for
many raters to understand.
-v/ The %ritical 'ncident Method: This technique of performance appraisal was developed by
<lanagan and Furns. ,nder this procedure, attempts are made to devise for each job a list of
critical job requirements. uperiors are trained to be on the lookout for critical incidents on the
part of the subordinates in accomplishing the job requirements. The superiors enlist the incidents
as they happen and in the process, tend to build up a record of each subordinate with debit on the
minus side and credit on the plus side. The merit of this procedure is that all evaluations are
based on objective evidence instead of subjective rating.
-vii/ The #ield Review: )t is an appraisal by someone outside the employee(s own department,
usually someone from the corporate office or from the employee(s own human resource
department. The field review process involves review of employee records, and interviews with
the employee, and sometimes with the employee(s superior. <ield review as an appraisal method
is used primarily in making promotion decisions at the managerial level. <ield reviews are also
useful when comparable information is needed from employees in the different units or
locations.
-c/ Results-(riented )ppraisal: The results$oriented appraisals are based on the concrete
performance targets which are usually established by superior and subordinates jointly. This
procedure has been known as +anagement by 'bjectives -+F'/. MB(: The definition of
+F', as e*pressed by its foremost proponent, 8r. >eorge . 'diorne, is: ;+anagement by
objectives is a process whereby the superior and subordinate managers of an organisation jointly
identify its common goals, define each individual(s major areas of responsibility in terms of the
results e*pected of him, and use these measures as guides for operating the unit and assessing the
contribution of each of its members.: +uch of the initial impetus for +F' was provided by eter
8rucker -.632/ and by 8ouglas +c>regor -.64E/. 8rucker first described management by
objectives in .632 in the #ractice of +anagement. 8rucker pointed the importance of managers
having clear objectives that support the purposes of those in higher positions in the organisation.
+c>regor argues that by establishing performance goals for employees after reaching agreement
with superiors, the problems of appraisal of performance are minimised. +F' in essence
involves the setting out clearly defined goals of an employee in agreement with his superior.
5arroll and Tosi -.6"1/, in an e*tensive account of +F', note its following characteristics:
.. The establishment of organisational goals.
0. The setting of individual objectives in relation to organisational goals.
1. A periodic review of performance as it relates to organisational goals.
2. =ffective goal$setting and planning by top management.
3. 'rganisational commitment.
4. +utual goal$setting.
". <requent individual performance reviews.
D. ome freedom in developing means of achieving objectives.
+F' is, thus, a method of mutual goal$setting, measuring progress towards the goals, taking
action to assure goal attainment, feedback, and participation. )t is a resultoriented philosophy,
enabling an employee to measure progress toward a goal which Pe+fo+,an-e an. Potent/al
A00+a/sal the employee often has helped to set. )n the goal$setting phase of +F', a superior
and subordinate discuss job performance problems and a goal is agreed upon. Along with mutual
goal$setting, a major component of +F' is the performance review session between the superior
and subordinate, which takes place regularly to evaluate progress towards specified goals. The
key features of management by objectives are as under:
.. uperior and subordinate get together and jointly agree upon the list the principal duties and
areas of responsibility of 7the individual(s job.
0. The subordinate sets his own short$term performance goals or targets in cooperation with his
superior.
1. They agree upon criteria for measuring and evaluating performance.
2. <rom time to time, as decided upon, the superior and subordinate get
together to evaluate progress towards the agreed$upon goals. At those meetings, new or modified
goals 7are set for the ensuing period.
3. The superior plays a supportive role. %e tries, on a day$to$day basis, to help the subordinate
achieve the agreed upon 7goals. %e counsels and coaches.
4. )n the appraisal process, the superior plays less of the 7role of a judge and more of the role of
one who helps the 7subordinate attain the organiAation goals or targets.
". The process focuses upon results accomplished and not upon personal traits.
There are four main steps in +F':
.. 8efine the job. &eview, with the subordinates, his or her key responsibilities and duties.
0. 8efine e*pected results -set objectives/. %ere specify in measurable terms what the person is
e*pected to achieve.
1. +easure the results. 5ompare actual goals achieved with e*pected results.
2. #rovide feedback, appraise. %old periodic performance review meetings with subordinates to
discuss and evaluate the 7latter(s progress in achieving e*pected results.
+F' as a mutual goal setting e*ercise is most appropriate for technical,professional,
supervisory, and e*ecutive personnel. )n these positions, there is generally enough latitude and
room for discretion to make it possible for the person to participate in setting his work goals,
tackle new projects, and discover new ways to solve problems. This method is generally not
applied for lower categories of workers because their jobs are usually too restricted in scope.
There is little discretionary opportunity for them to shape their jobs.+F' may be viewed as a
system of management rather than an appraisal method. A successful installation of +F'
requires written mission statements that are prepared at the highest levels of top management.
+ission statements provide the coherence in which top$down and bottom$up goal setting appear
sensible and compatible. +F' can be applied successfully to an organisation that has sufficient
autonomy, personnel, budget allocation, and policy integrity. +anagers are e*pected to perform
so that goals are attained by the organisation. Too often +F' is installed top$down in a
dictatorial manner with a little or no accompanying training. )f properly implemented, it serves
as a powerful and useful tool for the success of managerial performance. +F' is a tool that is
ine*tricably connected with team building so that the work commitment of team members can be
increased and their desire to e*cel in performance can be inspired. )t is important to have
effective team work among a group of managers or a group of subordinates. The group of
employees or subordinates must be looked upon as a team that needs to be brought together.
>oals should be set by manager$subordinate pairs, and also by teams. The basic superior
subordinate relationship in an organisation is in no way undermined in this concept of team goal
setting. !ines of responsibility, authority, and accountability remain clear. +F' has many
benefits, since it:
.. #rovides a way for measuring objectively the performance of subordinates.
0. 5o$ordinates individual performance with company goals.
1. 5larifies the job to be done and defines e*pectations of job accomplishment.
2. )mproves superior$subordinate relationships through a dialogue that takes place regularly.
3. <osters increased competence, personal growth, and opportunity for career development
4. Aids in an effective overall planning system.
". upplies a basis for more equitable salary determination, especially incentive bonuses.
D. 8evelops factual data for promotion criteria.
6. timulates self$motivation, self$discipline and self$control.
.E. erves as a device for integration of many management functions.
+F' has certain potential problems, such as:
.. )t often lacks the support and commitment of top management.
0. )ts objectives are often difficult to establish.
1. )ts implementation can create e*cessive paperwork if it is not closely monitored.
2. )t concentrates too much on the short run at the e*pense of long$range planning.
3. )t may lead to e*cessive time consuming.
Traditionally, in most performance evaluations a supervisor evaluates the performance of
subordinate. &ecently, a new approach has been enunciated by the western management gurus,
which is known as 14E degree appraisal $ a performance management in which people receive
performance feedback from those on all sides of them in the organisation $ their boss, their
colleagues and peers, and their own subordinates, and internal and e*ternal customers. The list
can grow to include vendors and consultants, human resource professionals, suppliers and
business associates, even friends and spouses. The 14E degree feedback refers to the practice of
using multiple raters often including self$ratings in the assessment of individuals. Thus, the
feedback comes from all around. )t is also a move towards participation and openness. +any
American companies are now using this 14E degree feedback. 5ompanies that practice 14E
degree appraisals include +otorola, emco FraAil, Fritish #etroleum, Fritish Airways, 5entral
Televisions, and so on. Farring a few multinational companies, in )ndia this system of appraisal
is uncommon.
This form of performance evaluation can be very beneficial to managers because it typically
gives them a much wider range of performance$related feedback than a traditional evaluation.
That is, rather than focusing narrowly on objective performance, such as sales increase or
productivity gains, 14E degree often focuses on such things as interpersonal relations and style.
'f course, to benefit from 14E degree feedback, a manager must have thick skin. The manager is
likely to hear some personal comments on sensitive topics, which may be threatening. Thus, a
14E degree feedback system must be carefully managed so that its focus remains on constructive
rather than destructive criticism.
Balance !core %ard: The Falance core 5ard -F5/ creates a template for measurement of
organisational performance as well as individual performance. )t is a measurement based
management system, which enables organisations to clarify vision and strategy before initiating
action. )t is also a monitoring system that integrates all employees at all levels in all departments
towards a common goal. F5 translates strategy into performance measures and targets, thus
making it operational and highly effective. )t helps cascade corporate level measures to lower
level so that the employees can see what they must do well to improve organiAational
=ffectiveness and helps focus the entire organisation on what must be done to create
breakthrough performance. F5 was introduced in .660 by 8r. &obert Baplan and 8avid Gortan
and has been successfully adopted by numerous companies worldwide. Assessment 5entre
=*perts from various departments are brought together to evaluate individuals or groups
specially their potentials for promotions.
PER(OR&ANCE APPRAISA! ASSESS&ENT
The quality of an appraiser is much more crucial than the appraisal methods. )t is desirable to
make the immediate superior a party to the appraisal programme. The assessment can be
accomplished by an individual or by a combination of the immediate superior, other managers
acquainted with the assessee(s work, a higher level manager, a personnel officer, the assessee
himself, and the assessee(s subordinates. Training of appraisers has been largely stressed as a
measure to improve performance appraisals. Appraisers can be trained with a view to improving
their ability to evaluate subordinates and discuss evaluations with them effectively.
The following questions can provide an assessment of performance appraisal system:
.. ?hat purposes does the organisation want its performance appraisal system to serve@
0. 8o the appraisal forms really get the information to serve the purposes@
1. Are the appraisal forms designed to minimise errors and ensure consistency@
2. 8o the processes of the appraisal serve the purpose of effective communication between the
appraiser and the 7appraisee@
3. Are supervisors rewarded for correctly evaluating and developing their employees@
4. Are the evaluation and developmental components separated@
". Are superiors relatively free from task interference in doing performance appraisal@
D. Are the appraisals being implemented correctly@
The following questions serve as guidelines for assessing the end$product of performance
appraisal:
.. 8id the appraisal session motivate the subordinate@
0. 8id the appraisal build a better relationship between the supervisor and the subordinate@
1. 8id the subordinate come out with a clear idea of where he or she stands@
2. 8id the superior arrive at a fairer assessment of the subordinate@
3. 8id the superior learn something new about the subordinate@
4. 8id the subordinate learn something new about the superior and pressures he or she faces@
". 8oes the subordinate have a clear idea of what corrective actions to be taken to improve
hisCher own performance@
PER(OR&ANCE APPRAISA! IN PRACTICE
Traditionally appraisals are carried out by the supervisors of the employees. ome companies do
follow self appraisal and compare the same with the traditional appraisal of the supervisors. A
new approach has been recently enunciated by the western management gurus, which is known
as 14E degree appraisal whereby appraisals are required to be carried out not only by the
supervisors, but also by those supervised -subordinates/ and peers. This approach also needs a re$
look in the conte*t of leadership concepts being practiced universally. )f one requires to be
appraised on how well he performs the leadership role, the appraisal should originate from the
followers -bottom to top approach/ and not from their supervisors alone.
?hile the supervisors can appraise, on the performance standards, goals, targets, achievements,
the leadership attributes need to be appraised only by those being supervised. This argument is
quite valid for higher level e*ecutives including 5='s. Therefore, all the three approaches, top$
bottom, bottom$top and peer level appraisal will be very relevant. #erhaps, appropriate
weightage is required to be assigned for appraisals being carried out in the 14E degree system,
which is yet to take off seriously in many organisations.
)t is quite disappointing to note that appraisals are not being carried out with the due importance
and seriousness they deserve though the systems provide scope for periodic and timely
appraisals. Gormally appraisals are being carried out once a year or at the most twice a year as
per the e*isting practice. +any organisations do follow monthly and quarterly appraisals for
management trainees till they are confirmed, and follow the by$annual or annual appraisal
system thereafter.Appraisal is a continuous process, to be scientifically carried out day in day
out, if one has to seriously carry out appraisals.
CONCERNS AN ISSUES IN APPRAISA!
.. )dentifying job responsibilities and duties and performance dimensions,
standards and goals.
0. #rioritiAing and weighing performance dimensions and performance goals.
1. 8etermining appropriate methods for appraising performance.
2. 8eveloping suitable appraisal instruments and scoring devices.
3. =stablishing procedures that enhance fair and just appraisals of all
employees.
4. #roviding performance feedback to all employees.
". &elating observed and identified performance to the rewards provided by
organisation.
D. 8esigning, monitoring and auditing processes to ensure proper operation of
the system and to identify areas of weakness.
6. >ranting employees opportunities for appeal whenever and wherever such
action is appropriate.
.E. Training of employees in all phases of the appraisal system.
The basic issues addressed by performance appraisal are:
? ?hat to appraise@
? %ow to appraise fairly and objectively@
? %ow to communicate the appraisal and turn the total process into a motivator@
? %ow the performance appraisal results can be put to good use@
? %ow to implement the performance appraisal system smoothly@
CO&PAN' PRO(I!E
RESEARCH &ETHOO!OG'
&ean/n1 of Resea+-23
4&esearch means a search for knowledge5. ometimes, it may refer to scientific and
systematic search pertinent information on a specific topic. )ntact researcher is an art of scientific
investigation. Re.,an an. &o+a6 define researcher as a ;systematic efforts to gain new
knowledge:. ome consider researcher is a movement from the known to the unknown. )t is
actually a voyage of discovery. According to 5lifford woody, researcher compromise,: define
and redefining problem, formulating hypothesis or suggested solution; collecting ,organiAing and
evaluating data; making deduction and reaching conclusion; and at last carefully testing the
conclusion to determine whether they fit the formulating hypothesis:.
&esearcher is thus an original contribution to the e*isting stock of knowledge making
for its advancement. )t is the pursuit of truth with the help of study, observation, comparison and
e*periment. )n short, the study of knowledge through objective and systematic method consisting
of enunciating the problem, formulating the hypothesis collecting the facts or data, analyAing the
facts and researching certain conclusion either in the form of solution towards the concerned
problem or in certain generalist for some theoretical formulations.
SA&P!ING UNIT3
The area, which is taken for study, is Ashok !eyland, =nnore, 5hennai.
SA&P!E SI7E3
8=)>GAT)'G A+#!= )H=
=mployees 3E
T'TA! 3E
The sample siAe taken for the project is 3E.
SA&P!ING PROCEURE
5onvenience sampling has been used to collect the data from the respondents. 5onvenience
sampling technique is followed.5onvenience sampling as the name implies is based on the
convenience of the researcher who is to select the sample. This type of sampling is also called
accidental sampling as the respondents in the sampling are included in it merely on account of
that being available on the spot where the survey is in process.
Thus the researcher may stand at a certain prominent point and interview all those or
selected people who pass through that place.
Pe+/o. of st8.6
The study was conducted for . month at Ashok !eyland, and data was collected from
-.4.E4.0EE6 to .3.E".0EE6/.
STASTISTICA! TOO!S
The statistical tools used for analysis are:
• Pe+-enta1e ,et2o.
• 9e/12te. a:e+a1e
PERCENTAGE &ETHO
)n this method frequency of the various criteria factors are tabulated and the
percentage for each value with respect to the total is found out. They are presented pictorially
by way of graphs in order to have better understanding.
The formula is I Go of &espondents
Total &espondent
9EIGHTE A%ERAGE &ETHO
,nder this method the relative importance of the different items is not the same. The
term weights stands for relative importance of the different items. The formula for calculating the
weighted arithmetic mean is
$ I ?WF
?<
?here,
J I weighted arithmetic mean
< I <requency or no of respondents
!I&ITATIONS O( THE STU'
..Time is important limitation due to the time constraints only few employees is taken for the
study.
0. The study is limited to the employees deployed in ashok leyland.
1. The study process often overlooked by management so redtapism involvement could
manipulated desired result.
ATA ANA!'SIS AN INTERPRETATION
A00+a/see S8+:e6
1. E;0e-tat/ons f+o, A00+a/sal S6ste, 3
&espondents were asked to rank the various options according to their preference. -&ank
. being most preferred and rank 4 being least preferred/. Then scoring was given on the
basis of ranks. . mark was allotted to rank ., 0 marks for rank 0 and so on.
Pa+t/-8la+ S-o+e O:e+all Ran<
Sala+6 A.,/n/st+at/on an. )enef/ts D" .
ete+,/nat/on of 0+o,ot/on o+ t+ansfe+ .E6 0
Ass/stan-e /n 1oal 00D 1
G8/.el/ne fo+ t+a/n/n1 0lan 032 2
An /ns/12t /nto 6o8+ st+en1t2s an. =ea<ness 1.0 3
e-/s/on to la6off 132 4
<rom the above table it can be seen that employees e*pect ;!alary )dministration and
Benefits: to be the main reason for conducting a #erformance Appraisal. ;$ecision to
layoff: is of least importance as per the appraisee.
2. A=a+eness abo8t Res0ons/b/l/t/es 3
Yes; 86%
No; 14%
Awareness ab!" Res#ns$b$%$"$es
<rom the graph it can be seen that majority of employees are aware about their
responsibilities, which implies that the appraisers have efficiently communicated to the
appraisees all the parameters that will be taken into account during appraisal.
3. Sat/sfa-t/on !e:el a,on1 a00+a/se +e1a+./n1 A00+a/sal S6ste, 3
2%
28%
42%
23%
5%
Sa"$s&a'"$n Le(e%
Fully Dissatisfed Partially
Dissatisfed
Satisfed Partially satisfed
Fully satisfed
<rom graph it can be seen that majority of the respondents are satisfied with the appraisal
system. 'nly a meager 1EK were dissatisfied with the #erformance Appraisal programs.
4. A=a+eness abo8t 0e+fo+,an-e +at/n1s 3
Yes; 34%
No; 66%
Awarness ab!" Per&r)an'e Ra"$n*
This clearly shows that majority of the employees are not aware about the performance
ratings that are taken into account while conducting a performance appraisal.
5. Alo=/n1 Self +at/n1s 3
Yes; 92%
No; 8%
Se%& Ra"$n* S+!%, be a%%we,
<rom graph it can be seen that majority of respondents want self rating to be a method of
conducting the appraisals .
6. C2an-e to +ate 6o8+ o=n 0e+fo+,an-e
Yes; 23%
No; %
Ra"e -!r wn #er&r)an'e
<rom the graph we can see that majority of the employees are not given a chance to rate
their own performance in the organiAation.
7. T/,/n1 of A00+a/sals
2% 3%
11%
84%
T$)$n* & A##ra$sa%
!o"t#ly
$uaterly
%al& Yearly
'""ual
This shows that most of the organisations conduct their #erformance Appraisal programs
annually. A very small percentage of the organisations conduct #erformance Appraisals
on a half yearly basis. The share of the quarterly and monthly appraisals are e*tremely
minimal.
". C+e./b/l/t6 of A00+a/se+
38%
63%
Cre,$b$%$"- & A##ra$ser
Yes
No
This shows that according to the employeesCappraisees the credibility of the appraiser is
e*tremely important and it has an effect on the overall #erformance appraisal program.
#. Co,0la/nt -2annel fo+ e,0lo6ees
2%
3%
C)#%a$n" C+anne% &r e)#%-ees
Yes
No
This shows that there is no proper complaint channel e*isting in the organisations for the
employees who are dissatisfied with the performance appraisal system.
1>. Stan.a+.s -o,,8n/-ate. to e,0lo6ees
36%
64%
S"an,ar,s C))!n$'a"e, " E)#%-ees
Yes
No
<rom this it can be seen that there is a clear majority among the employees who say that
the standards on the basis of which the performance appraisal is carried out is not
communicated to the employees before hand.
11. Pe+fo+,an-e A00+a/sal
91%
9%
Per&r)an'e A##ra$sa%
())ediate
Su*er+isor
Peer a**raisal
,ati"- .o))ittee Sel& ,ati"-
'**raisal /y
su/ordi"ates
Almost all the #erformance Appraisals are carried our by the )mmediate upervisor in
these organisations. )n very few organisations, &ating committees carry out the
performance appraisals. Gone of the organisations use #eer Appraisals, Appraisals by
subordinates and elf rating as a method of #erformance Appraisal.
12. Clea+ 8n.e+stan./n1 of A00+a/see?s @ob
%
23%
C%ear !n,ers"an,$n* & A##ra$see.s /b
Yes
No
This shows that the performance Appraisal programs are successful in giving a clear
understanding of the appraisee(s job to both appraiser and appraisee.
13. Ob@e-t/:es of A00+a/sal S6ste,
50% 50%
Ob0e'"$(e & A##ra$sa% S-s"e)
Yes
No
<rom the figure we can derive that the objective for conducting the Appraisal system is
clear only to half of the employees. The remaining half are not clear about the objective
for which the #erformance Appraisal is carried out.
14. Goo. -o,,8n/-at/on bet=een to0 ,ana1e,ent an. b8s/ness 1oals
22%
8%
G, '))!n$'a"$n be"ween T# )ana*e)en" an, B!s$ness *a%
Yes
No
This shows that the appraisal systems do not provide a good communication flow of the
top$management plans and business goals to the staff below.
15. Co,,ents an. s811est/ons to be -ons/.e+e.
98%
2%
C))en"s an, s!**es"$n " be 'ns$,ere,
Yes
No
Almost all the employees e*pect that their comments and suggestions should be taken
into consideration while conducting the #erformance Appraisal.
16. Post A00+a/sal /nte+:/e=
30%
0%
Ps" A##ra$sa% In"er($ew
Yes
No
As per the response from the employees we can see that there is no interview conducted
after the appraisal program for majority of the employees.
A00+a/se+ S8+:e6
1. P8+0ose of A00+a/sal
Salary 'd)i"istratio" a"d 1e"efts
Deter)i"atio" o& *ro)otio" or tra"s&er
De.isio" o" layo2
'ssista".e i" -oal
3uideli"e &or trai"i"- Pla"
'" i"si-#t i"to your stre"-t#s a"d 4ea5"ess
2
24
42
2
69
81
P!r#se & A##ra$sa% S-s"e)
S.ore
&espondents were asked to rank the various options according to their preference. -&ank
. being most preferred and rank 4 being least preferred/. Then scoring was done on basis
of these ranks. . mark was allotted to rank ., 0 marks for rank 0 and so on. Then the total
score for each purpose was calculated and overall ranking was given.
Pa+t/-8la+ S-o+e O:e+all Ran<
ete+,/nat/on of 0+o,ot/on o+ t+ansfe+ 02 .
Sala+6 A.,/n/st+at/on an. )enef/ts 0" 0
e-/s/on to la6off 20 1
G8/.el/ne fo+ t+a/n/n1 0lan 46 2
Ass/stan-e /n 1oal "0 3
An /ns/12t /nto 6o8+ st+en1t2s an. =ea<ness D. 4
<rom table it can be seen that appraiser considers ;$etermination of promotion or
transfer: L ;!alary administration and Benefits: as two important factors for conducting
an Appraisal.
2. A00+a/sal S6ste,
2%
60%
13%
A##ra$sa% S-s"e)
1
2
3
4
5
)n this question appraiser was asked to rate how helpful the appraisal system is, from the
graph it can be seen that majority of appraisers have rated 3,2 L 1 which implies that
#erformance Appraisal system is very helpful in #lanning their work. Also most of the
appraisers are satisfied with the appraisal system.
3. S800o+t f+o, s8bo+./nate
100%
S!##r" &r) S!br,$na"e
Yes
No
This question was asked to find out how helpful appraisal system is in communicating the
support that apprasier needs from appraisee. <rom results it is seen that the performance
appraisal system is very helpful in communicating the support and help needed by the
appraiser from the appraisee.
4. T60e of A00+a/sal S6ste,
13%
13%
3%
T-#e & A##ra$sa% S-s"e)
'ssess)e"t
.e"tre
!16
1',S 360 de-ree
&eed/a.5
1ala".e
s.ore.ard
<rom results its clear that majority of companies prefer to use ;14E degree feedback:
system for #erformance Appraisal. As 14E degree feedback gives feedback of appraisee
from everyone interacting with him, it is more reliable and hence most preferred.
5. Pe+fo+,an-e A00+a/sal -+/te+/a
20%
60%
20%
Per&r)an'e A##ra$sa% 'r$"er$a
$ua"titati+e
out.o)e .riteria
$ualitati+e
*ro.ess .riteria
$ua"titati+e
*ro.ess .riteria
<rom results we can see that Mualitative #rocess is considered as the most important
criteria for which the #erformance appraisal programs are carried out, which shows that
companies consider Mualitiy of product L service and 5ustomer satisfaction as most
important factors.
6. T/,/n1 of A00+a/sals
8%
13%
T$)$n* & A##ra$sa%
'""ual
$uaterly
%al& Yearly
!o"t#ly
'"yti)e
<rom graphs we can see that most of companies conduct appraisals on annual basis.
ome companies conduct quaterly also.
7. Effe-t of 0oo+ A00+a/sal S6ste,
3%
2%
E1e'" & Pr A##ra$sa% S-s"e)
De7)oti+atio"
,ete"tio"
("e2e.ti+e
tea)4or5
)t can be seen from results that most of the employees get 8e$motivated because of a
poorly conducted appraisal. To some e*tent employees dont coordinate with their team
members. Thus resulting in reduction of output.
". Co,,8n/-at/on bet=een to0 ,ana1e,ent an. staff
100%
G, C))!n$'a"$n be"ween T# Mana*e)en" an, S"a1
Yes
No
All appraisers totally agree that performance appraisal helps in communicating the top
management plans and business goals to staff at lower level.
#. Ins/12t to A00+as/ee?s st+en1t2 an. =ea<ness
33%
6%
Ins$*+" $n" A##ra$see.s S"ren*"+ an, wea2ness
Yes
No
)t is evident from the results that performance appraisal system doesn(t help the appraiser
in understanding strength and weakness of apraisee.
1>. A00+a/see?s -o,,ent an. s811est/on
13%
8%
A##ra$see.s '))en" & s!**es"$n
Yes
No
<rom the results it can be seen that appraisee(s comments and suggestion are not taken
into consideration before #erformance Appraisal. #erformance Appraisal system is
designed by appraiser without consulting appraisee.
11. Pe+fo+,an-e A00+a/sal
100%
Per&r)an'e A##ra$sa%
())ediate
su*er+isor
Peer a**raisal
,ati"-
.o))ittees
Sel&7rati"-
'**raisal /y
su/ordi"ates
)t is evident from the results that performance appraisal is conducted by the )mmediate
upervisor in all the companies.
12. Un.e+stan./n1 of A00+as/ee?s *ob
100%
Un,ers"an,$n* & A##ra$see.s /b
Yes
No
<rom this it is clearly seen that according to appraiser there is a clear and joint
understanding of the appraisee(s job.
13. Stan.a+.s fo+ Pe+fo+,an-e A00+a/sal
8%
13%
S"an,ar,s &r Per&r)an'e A##ra$sa%
Yes
No
<rom results it is evident that #erformance appraisal standards are very well
communicated to Appraisee before the Appraisal is carried out.
14. Self +at/n1 /n Pe+fo+,an-e A00+a/sal
100%
Se%& Ra"$n* $n Per&r)an'e A##ra$sa%
Yes
No
<rom results it can be clearly seen that the Appraisee is not given a chance to rate his own
performance.
A
15. A-t/on afte+ Pe+fo+,an-e A00+a/sal
100%
A'"$n a&"er Per&r)an'e A##ra$sa%
Yes
No
This shows that most of the companies act upon the results of their #erformance Appraisal
program.
(/n./n1s
? NNNN.has separate appraisal system for each level of employees. These appraisal
systems differ on the factors on which a person is rated and the nature of duties
handled by him.
? NNNNit is seen that the employees are not satisfied with the way they are
appraised or they haven(t been appraised properly. <or this matter, almost all the
companies have interview and discussion.
? The frequency of appraisal in all organisations is yearly. ?here appraisal is based on
Bey &esult Areas, a mid$term review is also undertaken. This data is then compiled
and the final appraisal is conducted at the end of the year.
? )n most of the cases the immediate supervisors is the appraiser but sometimes it is
also the %& department or the %'8.
? All organiAations have goal setting as part of appraisal. The performance is evaluated
against these targets.
? 'n an average D3K of the employees in an organiAation are motivated by
performance appraisal.
? NNNNN.use the data that is maintained for every employee to compare the
performance over a period of time. ome companies also use this data for making
decision regarding job rotation, succession planning. 9ery few companies make use
of this data for retrenchment as proof of poor performance.
? A good deal of respondents felt that appraisal is likely to be more successful when it
is linked with financial and semi$financial incentives like promotion, bonus,
increments. This increases the commitment from the parties concerned the appraisal
and the appraisee.
? 14E
o
degree feedback system is not very popular in the )ndian companies. Among the
companies under study, this system has been implemented in NNNN.. This system
can be adopted and is successful only in the presence of an open organisational
climate.
? +ost of the companies have a separate appraisal system for the new employees, who
are on probation. This basically to confirm them.
? NNNN.. is satisfied with the current performance appraisal system and do not
require any changesNNNNthey would like to provide more training to appraisers,
weightage to few traits of employee need to be rewarded, if possible appraisal form
should be standardised.
? )n most of the organiAations training is provided for the appraisal system one to two
weeks before the appraisal and also when new or revised #erformance appraisal
system is introduced.
? #erformance appraisal is surly a good indicator -about DEK/ for the training and
developmental need of the employees.
? Go monitoring is done to find out any loop holes in the performance appraisal system
and if it e*ists, it is on informal basis -feedback every year/.
? Awareness sessions about the performance appraisal -objectives and importance/ are
conducted. )t is normally done for new employees.
Con-l8s/ons an. S811est/ons
? #erformance appraisal should not be perceived just as a regular activity but its
importance should be recogniAed and communicated down the line to all the
employees.
? There should be a review of job analysis, job design and work environment based on
the performance appraisal.
? )t should bring more clarity to the goal and vision of the organisation.
? )t should provide more empowerment to the employees.
? Gew methods of appraisal should be adopted so that both appraiser and the appraisee
take interest in the appraisal process.
? The employees who have e*cellent performance should be used as a mentor for other
employees which would motivate others to perform better.
? =mployees should be given feedback regarding their appraisal. This will help them to
improve on their weak areas.
? <inancial and non$financial incentives should be linked to the annual appraisal system
so that employees would be motivated to perform better.
? Gew mechanisms should be evolved to educe the time factor involved in the
procedure of appraisal. )ntroducing online$appraisal can do this.
? The frequency of training program for the appraiser should be increased and these
sessions should be made interactive.
? The awareness sessions for the employeesCappraisees should be made more
interactive and the views and opinion of the appraisees regarding appraisal should be
given due consideration.
? Assistance should be sought from specialists for framing a proper appraisal system
that suits the organisation climate. 5onstant monitoring of the appraisal system
should be done through discussions, suggestions, interactions.
? 5ombining the different methods of appraisal can minimiAe the element of biasness in
an appraisal. !ike the &ating method combined with assessment center method would
give an evidence of poorCunfavorable or outstanding behaviour of the appraisee, if
any.
? ,se of modern appraisal techniques like 14E
o
appraisal, assessment centers which are
more effective.
? +ore transparency should be brought about in the appraisal system.
? The appraisal system should cover all employees in the organisation both white collar
and blue$collar jobs.
? &ecogniAing the good performers i.e., appraisees who have accomplished the targets
for the year can help in getting more commitment from the employees.
? )nformation regarding the performance of the employees should be kept in proper
manner.
? ome of the performance appraisals should be conducted by the top management so
that they can understand the employees and their needs, behaviour better and to find
out the loopholes.
? #erformance appraisal should be effectively link to the performance management
system of the organisation.
? NNNNN.still follow the traditional methods of appraisal that should be
transformed into the modern one.
Questions for Appraisee
Name: ___________________________ Contact No: __________________________
1.What do you expect from a Performance appraisal :
(Rank the options from 1 to 6; 1 being most preferred & 6 being least
preferred)
Detail Rank
Salary Administration and Benefts
Determination of promotion or transfer
Decision on layof
Assistance in goal
Guideline for training Plan
An insight into your strengths and weakness
2.Do you know what exactly is expected from you at work?
a.Yes b. No
3.Are you satisfed with the appraisal system?
1 2 3 4 5
(1 = Least satisfed; 5 = Most satisfed)
4.Are you aware of performance ratings?
a.Yes b. No
5.Do you think you should be given an opportunity to rate your own
performance?
a.Yes b. No
6.Are you given a chance to rate your own performance?
a.Yes b. No
7.Timing of Appraisals
a.Monthly
b.Quarterly
c.Half Yearly
d.Annual
e.Anytime
8.Does the credibility of Appraiser afect the Performance Appraisal System?
a.Yes b. No
9.Is there a complaint channel for the employees who are dissatisfed with the
performance appraisal system?
a.Yes b. No
10.Are the standards on the basis of which the performance appraisal is carried
out communicated to the employees before hand?
a.Yes b. No
11.Who conducts the performance appraisal”?
a.Immediate supervisor
b.Peer appraisal
c.Rating committees
d.Self-rating
e.Appraisal by subordinates
12.Is the performance Appraisal successful in giving a clear understanding of the
appraisee’s job to both appraiser and appraise?
a.Yes b. No
13.Are the objectives of appraisal system clear to you?
a.Yes b. No
14.Does the appraisal system provide a good communication between the top-
management plans and business goals to staf below?
a.Yes b. No
15.Do you want your comments and suggestions to be taken into consideration
during appraisal?
a.Yes b. No
16.Is there a post appraisal interview conducted?
a.Yes b. No
Questions for Appraiser
Name: ___________________________ Contact No: __________________________
1.Purpose of Performance appraisal :
(Rank the options from 1 to 6; 1 being main purpose & 6 being last
purpose)
Detail Rank
Salary Administration and Benefts
Retain performing employees
Determination of promotion or transfer
Decision on layof
Assistance in goal
Guideline for training Plan
2.Is the Performance Appraisal helping you to plan your work well?
1 2 3 4 5
(1 = Least helpful; 5 = Most helpful)
3.Does the system provide you a chance to communicate the support you
need from your subordinate to perform the job well.
a.Yes b. No
4.Which appraisal system is being employed in the company?
a.Assessment centre
b.MBO
c.BARS
d.360 degree feedback
e.Balance scorecard
5.Performance Appraisal criteria
a.Quantitative outcome criteria (Sales volume, Sales price, Productivity,
Goal accomplishment rate)
b.Qualitative process criteria (Quality of product or service, Customer
satisfaction)
c.Quantitative process criteria (Efciency, Cost/expenses, Attendance)
d.Qualitative process criteria (Judgment, Work attitude, Leadership,
Conduct /Trait)
6.Timing of Appraisals
a.Monthly
b.Quarterly
c.Half Yearly
d.Annual
e.Anytime
7.What do you think is the efect of a poor appraisal system
a. De-motivation
b. Retention
c. Inefective teamwork
8.Does the appraisal system provide a good communication between the top-
management plans and business goals to staf below?
a.Yes b. No
9.Does it give insight to appraisee regarding his strength or weakness?
a.Yes b. No
10.Are employee’s comments and suggestions taken into consideration
before the appraisal?
a.Yes b. No
11.Who conducts the performance appraisal”
a.Immediate supervisor
b.Peer appraisal
c.Rating committees
d.Self-rating
e.Appraisal by subordinates
12.Is the performance Appraisal successful in giving a clear understanding of the
appraisee’s job to both appraiser and appraise?
b.Yes b. No
13.Are the standards on the basis of which the performance appraisal is carried
out communicated to the employees before hand?
a.Yes b. No
14.Do you give an opportunity to the appraisee to rate his own performance?
a8 Yes b. No
15.Do you act upon the results of your performance appraisal?
a.Yes b. No
168If yes, then mention the remedial measures taken?
)OOBS
%uman resource management O Aswathappa
%uman resource management O 9. . &ao
%uman resource management O >ary dessler
#ersonnel management $ 5.F.mamoria
=valuating management training and development $ F.&.virmani premila seth
trategic human resource management O rinivas.&.Bandula
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