A Project Report on Performance Appraisal of Employees

1. INTRODUCTION

1.1 PERFORMANCE APPRAISAL

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.

It is a powerful tool to calibrate, refine and reward the performance of the

employee. It helps to analyze his achievements and evaluate his contribution towards the

achievements of the overall organizational goals.

By focusing the attention on performance, performance appraisal goes to the heart

of personnel management and reflects the management’s interest in the progress of the

employees.

People differ in their abilities and their aptitudes. There is always some difference

between the quality and quantity of the same work on the same job being done by two

different people. Therefore, performance management and performance appraisal is

necessary to understand each employee’s abilities, competencies and relative merit and

worth for the organization. Performance appraisal rates the employees in terms of their

performance.

Performance appraisal takes into account the past performance of the employees

and focuses on the improvement of the future performance of the employees. Here at

naukrihub, we attempt to provide an insight into the concept of performance appraisal, the

methods and approaches of performance appraisal, sample performance appraisal forms

and the appraisal software’s available etc. An attempt has been made to study the current

global trends in performance appraisal.

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1.1.1 EMPLOYEE PERFORMANCE

If employee performance is found to be less than the expected level of performance

then this must be investigated and, if appropriate, a formal appraisal should be carried out

including 360-degree feedback. The root causes of performance must be identified as these

will determine future actions. Root causes for less than expected performance may include:

Personal issues that are impacting performance such as bereavement, close family

member sickness, financial or relationship worries

Workplace issues that are impacting performance such as helping other colleagues

to meet their objectives before own objectives, issues with the work environment

such as an excessively noisy office or frequent interruptions

Overloaded with too many objectives or conflicting priorities, especially in a matrix

management environment

Team issues such as working relationship with other team members, dependencies

on others to complete their objectives first, access to needed tools, experts or third-

party suppliers

Employee development issues such as lack of training, experience or expertise to

complete the required objective, or lack of people skills to work and deal

effectively with others in the situations the employee is in

1.1.2 OBJECTIVES OF PERFORMANCE APPRAISAL:

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

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

Helps to strengthen the relationship and communication between superior –

subordinates and management – employees.

To diagnose the strengths and weaknesses of the individuals so as to identify the

training and development needs of the future.

To provide feedback to the employees regarding their past performance.

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Provide information to assist in the other personal decisions in the organization.

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.

If employee development is required for performance improvement then solving

these performance problems should be straightforward with a clear understanding of root

causes. Possible approaches include changing the work environment, better prioritisation

of conflicting priorities, time off, additional training, shadow or buddy system, mentoring

or coaching, changing team environment or set objectives and so on.

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1 .2 INDUSTRY PROFILE

1.2.1 HISTORY

The first practical automobile with a Petrolengine was built by Karl Benz in 1885

in Mannheim, Germany Benz was granted a patent for his automobile on 29 January 1886,

and began the first production of automobiles in 1888, after Bertha Benz his wife, had

proved with the first long-distance trip in August 1888 - from Mannheim to Pforzheim and

back - that the horseless coach was absolutely suitable for daily use. Since 2008 a Bertha

Benz Memorial Route commemorates this event.

Soon after, Gottlieb Daimler and Wilhelm Mabuchi in Stuttgart in 1889 designed a

vehicle from scratch to be an automobile, rather than a horse-drawn carriage fitted with an

engine. They also are usually credited as inventors of the first motorcycle in 1886, but

Italys Enrico Bernardi of the University of Padua in 1882, patented a 0.024 horsepower

(17.9 W) 122 cc (7.4 cu in) one-cylinder petrol motor, fitting it into his son's tricycle

making it at least a candidate for the first automobile, and first motorcycle;.[9]:p.26 Bernardi

enlarged the tricycle in 1892 to carry two adults.

1.2.2 AUTOMOTIVE INDUSTRY

The automotive industry designs, develops, manufactures, markets, and sells the

world's motor vehicles. In 2009, more than 88 million motor vehicles, including cars and

commercial vehicles were produced worldwide.

In 2009-2010, a total of 90 million new automobiles were sold worldwide: 24

million in Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 14.4

million in Latin America, 6.4 million in the Middle East and 7.4 million in Africa. [2] The

markets in North America and Japan were stagnant, while those in South America and

Asia grew strongly. Of the major markets, Russia, Brazil, India and China saw the most

rapid growth.

About 250 million vehicles are in use in the United States. Around the world, there

were about 806 million cars and light trucks on the road in 2009; they burn over 260

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http://en.wikipedia.org/wiki/Automotive_industry#cite_note-georgano-8%23cite_note-georgano-8

http://en.wikipedia.org/wiki/Cubic_centimetre

http://en.wikipedia.org/wiki/Watt

http://en.wikipedia.org/wiki/Italy

billion gallons of gasoline and diesel fuel yearly. The numbers are increasing rapidly,

especially in China and India. In the opinion of some, urban transport systems based

around the car have proved unsustainable, consuming excessive energy, affecting the

health of populations, and delivering a declining level of service despite increasing

investments. Many of these negative impacts fall disproportionately on those social groups

who are also least likely to own and drive cars. The sustainable transport movement

focuses on solutions to these problems.

In 2009, with rapidly rising oil prices, industries such as the automotive industry,

are experiencing a combination of pricing pressures from raw material costs and changes

in consumer buying habits. The industry is also facing increasing external competition

from the public transport sector, as consumers re-evaluate their private vehicle usage. [7]

Roughly half of the US's fifty one light vehicle plants are projected to permanently close in

the coming years with the loss of another 200,000 jobs in the sector, on top of the 560,000

jobs lost this decade. As a result, in 2010, China became the largest automobile market in

the world

1.2.3 TWO WHEELERS IN INDIA

India is the second largest producer of two-wheelers in the world. In the last few

years, the Indian two-wheeler industry has seen spectacular growth. The country stands

next to China and Japan in terms of production and sales respectively.

Majority of Indians, especially the youngsters prefer motorbikes rather than cars.

Capturing a large share in the two-wheeler industry, bikes and scooters cover a major

segment. Bikes are considered to be the favourite among the youth generation, as they help

in easy commutation.

Large variety of two wheelers is available in the market, known for their latest technology

and enhanced mileage.

With over a billion plus population, the bike industry in India has witnessed

enormous growth in the last decade. Bikes in India encompass a major portion of the

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Indian two-wheeler industry. With changing market dynamics, bikes have slowly started

replacing the scooter and mopeds. Consuming a large share in the Indian two-wheeler

industry, bikes have come to represent style and class for many Indian men and a few

women as well.

1.2.4 INDIA YAMAHA MOTOR PVT. LTD.

Yamaha made its initial foray into India in 1985. It entered into a 50:50 joint

venture with the Escorts Group in 1996. In August 2001, Yamaha acquired its remaining

stake becoming a 100% subsidiary of Yamaha Motor Co., Ltd, Japan (YMC). In 2008,

YMC entered into an agreement with Mitsui & Co., Ltd. to become a joint investor in the

motorcycle manufacturing company "India Yamaha Motor Private Limited (IYM)". IYM

operates from its state-of-the-art-manufacturing units at Surajpur in Uttar Pradesh and

Faridabad in Haryana and produces motorcycles both for domestic and export markets.

With a strong workforce of more than 2000 employees, IYM is highly customer-driven and

has a countrywide network of over 400 dealers. Presently, its product portfolio includes

MT01 (1670 cc), YZF-R1 (998 cc), the all new YZF-R15 (150 cc), FZ16, FZ-S, Fazer

(153cc), Gladiator Type SS & RS (125 cc), Gladiator Graffiti (125cc), G5 (106 cc), Alba

(106 cc) and Crux (106 cc).

1.2.4.1 DEALERS

Our Brand Image speaks for itself. Complementing the Marketing team is our vast

and strong Dealer network - the backbone of our vital marketing operations.

Recent initiatives have been launched by Yamaha in the field of business-to-

business as well as business-to-consumer cooperation with Dealers. The new showrooms

based on YAMAHA VISUAL IDENTITY are one of the many steps in this direction.

Our dealer network works on the "3S" fundamentals of -SALES SERVICE and

SPARE PARTS under one roof. With a strongly dedicated team of Sales and Service

engineers, IYM targets the fulfillment of customer's needs. Every single customer matters

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to us. Together the 3S operate in tandem to serve our customer and forge an everlasting

bond with them.

CUSTOMER SATISFACTION is our motto and we remain steadfast in our

commitment to our valued customers...Offering Nothing But the Very BEST to Them.

1.2.4.2 EXPORTS

IYM is an active player in the exports market. Currently, we export motorcycles to

50 countries including Argentina, Mexico, Philippines, Bangladesh, Sri Lanka, Columbia,

Dominican Republic, Nigeria and lvory Coast. The export Product line boasts of RX 100,

Crux, YD 125, Enticer and Libero.

To consolidate our position in the exports arena, we are rapidly expanding our

presence in Asia, Africa, Central and South America.

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1.3 COMPANY PROFILE

1.3.1 ABINAYA AUTO

Abinaya Auto’s was started in the year 2002 at Nagai, Tamil Nadu. The company is

started by Mr. R. Jothiraman, along 25 employees. The company is dealing with Yamaha

Bike sales and service. Abinaya Auto has a wide distribution network all over the Tamil

Nadu with 3 branches.

Abinaya Auto’s has the branches in the following areas,

Nagai

Karaikkal

Thiruvallur

NAGAI BRANCH

The Nagai branch is taking care by Mr. Jothiraman, proprietor of the company. The

Nagai branch consists of 50 employees in the respective departments.

KARAIKAL BRANCH

The Karaikkal branch is taking care by Mr. Vijay, manager of the branch. The

Karaikkal branch consists of 20 employees in the respective departments.

THIRUVALLUR BRANCH

The Thiruvallur branch is taking care by Mr. Vinod, manager of the branch. The

Thiruvallur branch consists of 30 employees in the respective departments

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1.3.2 DEPARTMENT

There are four departments in the company, they are,

Customer Care

Sales

Service

The customer care department is taking care of queries of customers and booking of the

bikes. Sales department is taking care of delivering the bike in time. Service department is

taking care of free service and maintenance of the bike at the customer’s satisfaction level.

At present Abinaya Auto has 100 employees and widely distributing the bike all

over Tamil Nadu. The company is giving opportunity to do the apprentice for the diploma

holders. At presently there are 7 apprentices in the company.

The company provides best model of bikes as well as services to the Yamaha Bike.

The Company has the infrastructure for the service of the vehicles in good manner and on-

time delivery. Abinaya Auto offer various facility to its customers like delivering the bike,

giving free service to the customers to their complements, attending their queries – and

providing solution, etc.

The company employs a strong sales force so that they can operate the extensive

sales network successfully.

The company went on developing with latest technology and young generation’s

idealist works on this field which leads to high quality-level, quality control, which

increases its reputation and goodwill and also established classical standards in the industry

like perfection, reliability and quality.

The company also supplies the new category of bikes and spare parts which make

more satisfaction to the customers.

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1.4 OBJECTIVES OF THE STUDY

PRIMARY

To study the performance appraisal of employees at Abinaya Auto’s

SECONDARY

To study the purpose of performance appraisal conducted at Abinaya Auto’s.

To understand the opinion of employees towards performance appraisal at Abinaya

Auto’s.

To identify the effect of performance appraisal on individual and organizational

development.

To understand the existing relationship between management and employees.

To identify ways to improve the existing performance appraisal system.

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1.5 SCOPE OF THE STUDY

The management can identify the employee’s opinion of the existing performance

appraisal system.

The study can be used to make the present appraisal system more effective and

satisfied among employees.

It could be used to identify training and development needs for the individual and

the organization as a whole.

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1.6 LIMITATION OF THE STUDY

Some of the questionnaires were incomplete.

The result of the study are subject to bias and prejudices of the respondents

Unwillingness and inability of the respondent to provide true information.

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2. REVIEW OF LITERATURE

Performance appraisal is one of the most important requirements for all successful

business and human resource policy (Kressler, 2003). Rewarding and promoting effective

performance in organization, as well as identifying ineffective performers for resource

management (Pulakos, 2003). The ability to conduct performance appraisal relies on the

ability to assess an employee’s performance in a fair and accurate manner. Evaluating

employee performance is a difficult task. Once the supervisor understands the nature of the

job and the source of information, the information needs to be collected in a systematic

way, provided as feedback, and integrated into the organization’s performance

management process for use in making compensation, job placement and training decisions

and assignment (London, 2003). After a review of literature, a performance appraisal

model will be described in detail. The model discussed is an example of a performance

appraisal system that can be implemented aim a large institution of higher education,

within the Student Affair division. The model can be applied to top-level, middle-level and

lower-level employees. Evaluation instruments (forms) are provided to assist with

implementation the appraisal system.

Performance evaluations have been conducted since the times of Aristotle (Landy,

Zedeck, Cleveland, 1983). The earliest formal employee performance evaluation program

is thought to have originated in the United States military establishment shortly after the

birth of the republic (Lopez, 1968). The measurement of an employee’s performance

allows for rational administrative decisions at the individual employee level. It also

provides for the raw data for the evaluation of the effectiveness of such personnel-system

components and processes as recruiting policies, training programs, selection rules,

promotional strategies, and reward allocations (Landy, Zedeck, Cleveland, 1983). In

addition, it provides the foundation for behaviorally based employee counseling. In the

counseling setting, performance information provides the vehicle for increasing

satisfaction, commitment, and motivation of the employee. Performance measurement

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allows the organization to tell the employee some thing about their rates of growth, their

competencies, and their potentials. There is little disagreement that if well done,

performance measurements and feedback can play a valuable role in effecting the

organization (Landy, Zedeck, Cleveland, 1983).

PURPOSE

Performance appraisals should focus on three objectives: performance, not

personalities; valid, concrete, relevant issues, rather that subjective emotions and feelings;

reaching agreement on what the employee is going to improve in his performance and what

you are going to do (McKirchy, 1998). Both the supervisor and employee should

recognize that a strong relationship exists between training and performance evaluation

(Barr, 1993). Each employee should be allowed to participate in periodic sessions to

review performance and clarify expectations. Both the supervisor and the employee should

recognize these sessions as constructive occasions for two-way should include

opportunities for self-assessment as well as supervisor feedback.

The supervisor should keep in contact with the employee to assure the training

experiences are producing desired impact (Barr, 1993). A portion of the process should be

devoted to an examination of potential opportunities to pursue advancement of acceptance

of more complex responsibilities. The employee development goals should be recognized

as legitimate, and plans should be made to reach the goals through developmental

experiences or education (Barr, 1993). Encouraging development is not only a

supervisor’s professional responsibility, but it also motivates an employee to pursue

additional commitments. In addition, the pursuit of these objectives will also improve the

prospect that current employees will be qualified as candidates when positions become

available. This approach not only motivates current performance but also assists the

recruitment of current employees as qualified candidates for future positions (Barr, 1993).

BENEFIT OF PRODUCTIVE PERFORMANCE APPRAISALS

Employee learns of his or her own strengths in addition to weaknesses.- New goal

and objectives are agreed upon. Employee is an active participant in the evaluation

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process. The relationship between supervisor and employees is taken to an adult-to-adult

level. Work teams may be restructured for maximum efficiency. Employee renews his or

her interest in being a part of the organization now and in the future. Training needs are

identified. Time is devoted to discussing quality of work without regard to money issues.

Supervisor becomes more comfortable in reviewing the performance of employees.

Employees feel that they are taken seriously as individuals and that the supervisor is truly

concerned about their needs and goals. (Randi, Toler, Sachs, 1992).

PITFALLS TO AVOID

When conducting performance appraisals on any level, it is important to keep in

mind the common pitfalls to avoid.

These pitfalls may include but are not limited to:-

1. Bias/prejudice- Race, religion, education, family background, age, and/ or sex.

2. Trait assessment – Too much attention to characteristics that have nothing to do

with the job and are difficult to measure.

3. Over-emphasis on favorable or unfavorable performance of one or two tasks which

could lead to an unbalanced evaluation of the overall contribution.

4. Relying on impressions rater than facts.

5. Holding the employee responsible for the impact of factors beyond his/her control.

6. Failure to provide each employee with an opportunity for advance preparation

(Maddux, 1993).

LEGAL IMPLICATIONS

Any performance appraisal system used to make employment decisions about a

member of a protected class (i.e. Based on age, race, religion, gender or national origin)

must be a valid system (an accurate measure of performance associated with job

requirements). Otherwise, it can be challenged in the courts based on Title VII of the1964

Civil Rights Act, the Civil Rights Act of 1991 and the Age Discrimination in Employment

Act of 1975(London, 2003).

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Effectiveness of performance Appraisal system it is argued is a function of

applying the right system in right context. - By Klein; the Art o Appraisal

Performance appraisal system are “home work” that provides the information you

need in order to make appropriate administrative recommendations, hold meaningful

feedback discussions with staff members, and determined were performance improvement

is required - By Marion E. Haynes; Managing Performance

The effectiveness of an Appraisal System is determined by the quality of

communication between the manager and staff member, not by multiple raters, complex

scoring methods, or the form used. -By John D. Drake; Performance Appraisal: One

More Time

Performance appraisal can actually be counter-productive for employees who are in

the greatest need of training and further development -By Victor Buzzottan; Improving

your Performance Appraisal

One of the measure reason Performance management and Performance Appraisal

fail is that too much time is spent on Appraising performance using vague criteria, and not

enough time and effort put into helping employee understand what his job is about, and the

goals and objectives he/she is expected to achieve to be successful. Learn to do goals

setting painlessly. -By Robert Bacal; Learn to plan Performance and set employee

goals

Maximizing and measuring our own performance and that of the people who work

for us is a basic tenant of the work environment. Always use of simple tool and approach

that can be beneficial in achievement performance plan. -By Zack Mansdorf;

Performance Management; Identifying work goals

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Most managers and supervisors today are attempting to quantify their departmental

objective and pass them on their employees through performance standards. Despite the

simplicity of this management- by –objective approach, deadlines are missed, quality is

relatively poor and productive is low. The reasons for this may not be the fault of the

employees carrying out the work. The cause is most often associated with the immediate

supervisor’s lack of attention to the realities surrounding objectives and performance

standards require a careful analysis of all the relevant issues. -By Gregory Isaac; Plan for

performance

Organizations striving to develop an open and participative approach have begun to

give employees the chance to say what they think of their managers. Such appraisals can

only work in a culture where mangers are willing to listen and learn and effect any

necessary changes as a result. - By Madhukar Shukla; Upward Appraisal and

Organizational culture

At one stage performance appraisal relied mainly on personality characteristics.

Sub ordinates were being appraised by their superior on the extent to which they exhibited

characteristic like, tact, willingness, enthusiasm, and maturity. Mangers were being put

into position of psychologists and required to make subjective ratings without any point of

reference expect their own opinion -By Bob Nelson; Performance Assessment

Performance appraisal is a part is a part of overall performance management system

of an organization. Through the appraisal process, gap between an individual’s agreed

performance standard his actual performance is assessed and appropriate strategies are

drawn for subsequent performance cycle. This is a useful performance enhancement

exercise. In many Organizations, PMS is linked with other systems like salary & Benefits,

Training &Development and Succession Planning. -By H.K.Shukla; Straties Human

Resource Management

Bi-directional performance recognizes that for performance to improve, both

manager and employee must receive feedback on how well they are fulfilling their

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obligations to their organizations and to each other. -By Robert bacal; when Boss

evaluates you

3. RESEARCH METHODOLOGY

RESEARCH

Research in common parlance refers to a search for knowledge “Redman

and Mory define Research as a “systematized effort to gain new knowledge. Research is an

academic activity and as such the term should be used in a technical sense. According to

Clifford woody, Research comprises defining and redefining problem, formulating

hypothesis or suggested solutions; collecting, organising and evaluating data; making

deductions and research conclusion; and at last carefully testing the conclusions to

determine whether they fit the formulating hypothesis.

Research is thus an original contribution to the existing stock of knowledge making

for its advancement. It is pursuit of truths with the help of study, observation comparison

and experiment in short the search for knowledge through objective and systematic method

of finding solution to a problem is research.

3.1 RESEARCH DESIGN:

A Research design is the arrangement of conditions for collection and analysis of

data in a manner that aims to combine relevance to the Research purpose with economy in

procedure. In fact the Research design is the conceptual structure within which Research is

conducted: it constitutes the blueprint for the collection measurement and analysis of data.

It must be able to define clearly what he wants to measure and must find adequate

methods for measuring it along with a clearly cut definition of population he wants to

study. Since the aim is to obtain complete and accurate information in the said studies, the

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procedure to be used must be carefully planned. The research design must make enough

provision for protection against bias and must maximise reliability with due concern for

the economical completion of the research study.

Descriptive research is adopted for this study. It includes surveys and fact

finding enquires of different kinds. The major purpose of descriptive research is

description of the state of affairs as it exists at present. The main characteristic of this

method is that the researcher has no control over the variables. He can only report what has

happened or what is happened.

3.2 SAMPLING DESIGN

A sample design is a definite plan for obtaining a sample from the sampling

frame, it refers to the technique or procedure the researcher would adopt in selecting some

sampling units from which inferences about the population is drawn.

3.2.1 POPULATION AND SAMPLE SIZE

A decision has to be taken concerning a sampling unit before selecting sample. The

population for this study includes the employees from three branches of Abinaya Autos.

The total population of Abinaya Autos are 100. All 100 employees were undertaken for the

study. In this study the population and sample are equal.

3.3 DATA COLLECTION

The task of data collection begins after a research problem has been defined and

research design / plan chalked out. While deciding about the method of data collection to

be used for the study, the researcher should keep in mind two types of data viz,

Primary and

Secondary

PRIMARY DATA

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The primary data are those which are collected afresh and for the first time and thus

happen to be original in character. The tool used for collecting primary data is a structured

questionnaire.

SECONDARY DATA

The secondary data on the other hand are those which have already been collected

by someone else and which have already been passed through the statistical process. The

secondary data has been collected from the company records, journals. The secondary data

collected for this research was obtained from journals, magazines, company reports and

websites

3.4 STATISTICAL TOOLS

Chi – square test

Percentage analysis

Weighted average ranking method

3.4.1 CHI –SQUARE TEST

The Chi-square test is an important test amongst the several tests of significance

developed by statisticians. Chi-square is a statistical measure used in the context of

sampling analysis for comparing a variance to a theoretical variance. As a non-parametric

test, it can be used to determine if categorical data shows dependency or the two

classifications are independent. The test is, in fact, a technique through the use of which it

is possible for all researchers to

(i) Test the goodness of fit

(ii) Test the significance of association between two attributes and

(iii) Test the homogeneity or the significance of population variance.

As a test of independence, 2 test enables us to explain whether or not two attributes

are associated. In such a situation, we proceed with the null hypothesis that the two

attributes are independent. If the calculated value is less than the tabulated value at certain

degrees of freedom, the null hypothesis is accepted and vice versa.

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2 is calculated as follows:

2 = (O-E) 2

E

Where2 = Chi – square

O i = Observed Frequency

E i = Expected Frequency

2 is always positive and it ranges from 0 to 00

The expected value for the contingency tabulated as follows.

E = (Row total * Column total

Grand total

The 2 test depends on the set of observed and expected values and on the degrees of

freedom.

The 2 distribution is the limiting approximation designation

3.4.2 PERCENTAGE ANALYSIS

It refers to a special kind of ratio. Percentage is used in making comparison

between two or more series of data; percentages are used to determine relationship

between the series if data finding the relative differences becomes easier through

percentage.

It is expressed as,

Percentage (%) = No. of respondents x 100

Total no. of respondents

3.4.3 WEIGHTED AVERAGE RANKING METHOD

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Weighted average can be defined as an average whose component items are

multiplied by certain values (weights) and the aggregate of the products are divided by the

total of weights. One of the limitations of simple arithmetic mean is that it gives equal

importance to all the items of the distribution. In certain cases relative importance of all

the items in the distribution is not the same. Where the importance of the items varies it is

essential to allocate weight applied but may vary in different cases. Thus weighted is a

number standing for the relative importance of the items.

Weighted Average method is used to sum up the views of the various respondents

to obtain mean score for the particular statement.

Mean score = Total score / Number of respondent

Where,

Total score = Number of respondent x Weighted average

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3.5 DATA ANALYSIS AND INTERPRETATION

3.5.1 GENDER WISE CLASSIFICATION OF RESPONDENTS

TABLE 3.5.1GENDER WISE CLASSIFICATION OF RESPONDENTS

Gender No. of respondents Percentage (%)

Male 89 89

Female 11 11

Total 100 100

Source: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 89% of the respondents are male and

11% of the respondents are female.

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FIGURE 3.5.1 GENDER WISE CLASSIFICATION OF RESPONDENTS

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3.5.2 AGE WISE CLASSIFICATION OF RESPONDENTS

TABLE 3.5.2 AGE WISE CLASSIFICATION OF RESPONDENTS

Age No. Of Respondents Percentage (%)

20 – 25 Age 25 25

30– 35 Age 33 33

40 – 45 Age 30 30

Above – 45 Age 12 12

Total 100 100

Source : Primary Data

INTERPRETATION:

From the above table, it can be inferred that 33% of the respondents are in the age

between 30 – 35, 30% of the respondents are in the age between 40 – 45, 25% of the

respondents are in the age between 20 – 25 and 12% of the respondents are in the age

above 45.

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FIGURE 3.5.2 AGE WISE CLASSIFICATION OF RESPONDENTS

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3.5.3 EXPERIENCE WISE CLASSIFICATION OF RESPONDENTS

TABLE 3.5.3 EXPERIENCE WISE CLASSIFICATION OF RESPONDENTS

Experience No. Of Respondents Percentage (%)

Below 5 Years 28 28

5-10Years 54 54

10 – 15 Years 18 18

Above 15Years - -

Total 100 100%

Sources: Primary Data

INTERPRETATION:

From the above table, it can be inferred that 54% of the respondents are having 5-

10 years experience persons, 28% of the respondents have below 5 years of experience

persons, 18% of the respondents are having10 – 15 years of experience and no respondents

have experience more than 15 years.

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FIGURE 3.5.3 EXPERIENCE WISE CLASSIFICATION OF

RESPONDENTS

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3.5.4 EDUCATIONAL QUALIFICATION OF RESPONDENTS

TABLE 3.5.4 EDUCATIONAL QUALIFICATION OF RESPONDENTS

Educational Qualification No. Of Respondents Percentage (%)

UG Degree 49 49

PG Degree 19 19

Engineering 4 4

Others(iti) 28 28

Total 100 100


INTERPRETATION:

From the above table, it can be inferred that 49% of the respondents are UG degree

holders, 28% of the respondents are some others (iti), 19% of respondents are PG degree

holders and 4% of the respondents are engineering graduates.

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FIGURE 3.5.4 EDUCATIONAL QUALIFICATION OF RESPONDENTS

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3.5.5 FREQUENCY OF PERFORMANCE APPRAISAL

TABLE 3.5.5 FREQUENCY OF PERFORMANCE APPRAISAL

Performance appraisal times No. Of Respondents Percentage (%)

Once year 100 100

Twice a year - -

No specific time _ -

Total 100 100


INTERPRETATION:

From the above table, it can be inferred that 100% of the respondents agree that

performance appraisal is conducting once a year.

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3.5.6 REASON FOR CONDUTING PERFORMANCE APPRISAL

TABLE 3.5.6 REASON FOR CONDUTING PERFORMANCE APPRISAL

Performance appraisal

conducting No. Of Respondents Percentage (%)

To identify motivating methods - -

To decide monetary benefits - -

Identifying barriers of

performance

- -

All of the above 100 100

Total 100 100


INTERPRETATION:

From the above table, it can be inferred that 100% of the respondent’s agree that

the reason for conducting performance appraisal includes all the factors such as to identify

motivating methods, to decide monetary benefits and identify barriers for performance.

32

3.5.7 DURATION OF PERFORMANCE APPRAISAL CONDUCTED

TABLE 3.5.7 DURATION OF PERFORMANCE APPRAISAL CONDUCTED

When Performance

appraisal conducted No. Of Respondents Percentage (%)

During working hours 87 87

During non-working hours 13 13

Total 100 100


INTERPRETATION:

From the above table, it can be inferred that for 87% of the respondents’

performance appraisal is conducted during working hours and for 13% respondents’

performance appraisal is conducted during non-working hours.

33

FIGURE 3.5.5DUR ATION PERFORMANCE APPRAISAL CONDUCTED

34

3.5.8 WHO CONDUCTS PERFORMANCE APPRAISAL

TABLE 3.5.8 WHO CONDUCTS PERFORMANCE APPRAISAL

Who Performance

appraisal conducts No. Of Respondents Percentage (%)

Superior - -

Peers - -

Everyone - -

Outsider 100 100

Total 100 100


INTERPRETATION:

From the above table, it can be inferred that for 100% of the respondents’

performance appraisal is conducted by outsider.

35

3.5.9 REASON FOR PERFORMANCE APPRAISAL DISCUSSED

TABLE 3.5.9 Reason for performance appraisal discussed

Informed reason for

Performance appraisal

conducting

No. Of Respondents Percentage (%)

Always 20 20

Sometimes 77 77

Never 3 3

Total 100 100


INTERPRETATION:

From the above table, it can be inferred that 77% of respondents feel that

the reason for performance appraisal is discussed sometimes, 20% of the respondent’s feel

it is discussed always and 3% of respondents say reason is never discussed.

36

FIGURE 3.5.6 REASON FOR PERFORMANCE APPRAISAL

DISCUSSED

37

3.5.10 EMPLOYEE PERFORMANCE DISCUSSED

TABLE 3.5.10 EMPLOYEE PERFORMANCE DISCUSSED

Meetings of

employee performance No. Of Respondents Percentage (%)

Nil - -

Once 100 100

Twice - -

Thrice - -

Total 100 100%


INTERPRETATION:

From the above table, it can be inferred that for 100% of the respondents

meeting on performance is conducting once a year.

38

3.5.11. PERFORMANCE APPRAISAL PROGRAMS RELATED WITH

ORGANIZATIONAL GOALS

TABLE 3.5.11 PERFORMANCE APPRAISAL PROGRAMS RELATED WITH

ORGANIZATIONAL GOALS

Goals No. Of Respondents Percentage (%)

To a high extent 12 12

To some extent 69 69

To a low extent 19 19

Total 100 100


INTERPRETATION:

From the above table, it can be inferred that 69% of the respondents feel the

performance appraisal relates to some extent to organization goals, 19% feel to a low

extent and 12% feel to a high extent it relates.

39

FIGURE 3.5.7 PERFORMANCE APPRAISAL PROGRAMS RELATE

TO ORGANIZATIONAL GOALS

40

3.5.12 INVOLVEMENT IN DESIGNING APPRAISAL SYSTEM

TABLE 3.5.12 Involvement in designing appraisal system

Opinion No. Of Respondents Percentage (%)

Always - -

Sometimes - -

Never 100 100

Total 100 100


INTERPRETATION:

From the above table, it can be inferred that 100% of the respondents say they are

never involved in designing the appraisal system.

41

3.5.13 PERFORMANCE APPRAISAL RELEVANCE TO EMPLOYEE JOB

TABLE 3.5.13. PERFORMANCE Appraisal relevance to employee job

S. No RelevanceNo. Of

RespondentsPercentage (%)

1 Highly relevant 87 87

2 relevant 13 13

3 no idea - -

4 Irrelevant - -

5 highly irrelevant - -

Total 100 100


INTERPRETATION:

From the above table, it can be inferred that 87% of the respondents feel that

performance appraisal is highly relevant to employee job and 13% feel it is relevant.

42

FIGURE 3.5.8 PERFORMANCE APPRAISAL RELEVANCE TO

EMPLOYEE JOB

43

3.5.14 OPINION AND SUGGESTIONS SHARED TO MANAGERS

TABLE 3.5.14 OPINION AND SUGGESTIONS SHARED TO MANAGERS

Opinion and suggestions No. Of Respondents Percentage (%)

Mostly 100 100

Rarely - -

Never - -

Total 100 100


INTERPRETATION:

From the above table, it can be inferred that 100% of the respondents mostly share

their opinion and suggestions to their managers.

44

3.5. 15 TRAINING OF FILL UP PERFORMANCE APPRAISAL FORM

TABLE 3.5.15 Training of fill up Performance appraisal form

Forms No. Of Respondents Percentage (%)

Yes 100 100

No - -

Total 100 100%


INTERPRETATION:

From the above table, it can be inferred that 100% of the respondents are given

training to fill the appraisal form.

45

3.5.16 APPRAISER’S AWARENESS ON EMPLOYEE JOB

RESPONSIBILITIES AND DUTIES

TABLE 3.5.16 APPRAISER’S AWARENESS ON EMPLOYEE JOBresponsibilities

and duties

Aware No. Of Respondents Percentage (%)

Completely aware - -

Aware to an extent - -

Not aware 100 100

Total 100 100


INTERPRETATION:

From the above table, it can be inferred that 100% of the respondents feel that the

appraiser is not aware of their job responsibilities and duties.

46

3.5.17 FEEDBACK PROVIDED FOR PERFORMANCE

IMPROVEMENT

TABLE 3.5.17 Feedback provided for performance improvement

Feedback No. Of Respondents Percentage (%)

Frequently 11 11

Occasionally 89 89

Never - -

Total 100 100


INTERPRETATION:


feedback is provided occasionally whereas 11% feel that feedback is provided frequently.

47

FIGURE 3.5.9 FEEDBACK PROVIDED FOR PERFORMANCE

IMPROVEMENT

48

3.5.18 INVOLVEMENT OF RATER

TABLE 3.5.18 INVOLVEMENT OF RATERInvolvement No. Of Respondents Percentage (%)

Highly involved 34 34

Less involved 44 44

Not involved 26 26

Total 100 100


INTERPRETATION:

From the above table, it can be inferred that 44% of the respondents feel the rater is

less involved, 34% of the respondents feel they are highly involved and 26% of the

respondents they are not involved.

49

FIGURE 3.5.10 INVOLVEMENT OF RATER

50

3.5.19 IMPORTANCE OF PERFORMANCE APPRAISAL

TABLE 3.5.19 Importance of performance appraisal

Importance No. Of Respondents Percentage (%)

Highly important 90 90

Less important 10 10

Not important - -

Total 100 100


INTERPRETATION:

From the above table, it can be inferred that 90% of the respondents feel

performance appraisal is highly important and 10% of the respondents feel it is less

important.

51

FIGURE 3.5.11 IMPORTANCE OF PERFORMANCE APPRAISAL

52

3.5.20 PROPER EXECUTION OF PERFORMANCE APPRAISAL

TABLE 3.5.20 PROPER EXECUTION OF PERFORMANCE APPRAISAL

properly executed in your

organizationNo. Of Respondents Percentage (%)

Yes 78 78

No 22 22

Total 100 100


INTERPRETATION:


performance appraisal is properly executed while 22% feel it is not properly executed.

53

FIGURE 3.5.12 PROPER EXECUTION OF PERFORMANCE APPRAISAL

54

3.5.21 SUPPORT OF TOP MANAGEMENT IN PERFORMANCE

APPRAISAL

TABLE 3.5.21 Support of top management in performance appraisal

SupportNo. of

RespondentsPercentage (%)

Highly supportive 64 64

Less supportive 36 36

Not supportive - -

Total 100 100


INTERPRETATION:

From the above table, it can be inferred that 64% of the respondents feel top

management is highly supportive and 36% feel they are less supportive.

55

FIGURE 3.5.13 SUPPORT OF TOP MANAGEMENT IN

PERFORMANCE APPRAISAL

56

3.5.22 UPDATING OF PERFORMANCE APPRAISAL

TABLE 3.5.22 UPDATING of performance appraisal

Reviewed and updated No. Of Respondents Percentage (%)

Frequently 46 46

Occasionally 54 54

Never - -

Total 100 100


INTERPRETATION:


performance appraisal is reviewed occasionally while 46% of respondents feel they are

reviewed frequently.

57

FIGURE 3.5.14 UPDATION OF PERFORMANCE APPRAISAL

58

3.5.23 POTENTIAL IDENTIFIED BY PERFORMANCE APPRAISAL

Table 3.5.23 Potential identified by performance appraisal

Effectiveness No. Of Respondents Percentage (%)

Effectively 36 36

Less effectively 54 54

Neutral 10 10

Total 100 100


INTERPRETATION:


potential is identified less effectively, 36% feel effectively, and 10% feel neutral.

59

FIGURE 3.5.15 POTENTIAL IDENTIFIED BY PERFORMANCE

APPRAISAL

60

3.5.24 SATISFACTION OF PERFORMANCE APPRAISAL PROGRAM

TABLE 3.5.24 SATISFACTION OF PERFORMANCE APPRAISAL PROGRAM

Satisfaction No. Of Respondents Percentage (%)

Unsatisfactory 17 17

Needs Improvement 51 51

Meets Expectations 12 12

Outstanding 20 20

Total 100 100


INTERPRETATION:


performance appraisal Needs Improvement, 20%of the respondents feel it is Outstanding,

17% of the respondents feel it is Unsatisfactory and 12% of the respondents say it Meets

Expectations.

61

FIGURE 3.5.16 SATISFACTION OF PERFORMANCE APPRAISAL

PROGRAM

62

3.5.25 PERFORMANCE APPRAISAL ENCOURAGES TO REACH

GOAL

Table 3.5.25 Performance Appraisal encourages to reach goal

Reaching your goals No. Of Respondents Percentage (%)

Strongly agree 57 57

Agree 21 21

Neutral 10 10

Disagree 12 12

Strongly disagree - -

Total 100 100


INTERPRETATION:

From the above table, it can be inferred that 57% of the respondents agree that

performance appraisal encourages to reach goals, 21% agree, 12% disagree and 10% feel

neutral.

63

FIGURE 3.5.17 PERFORMANCE APPRAISAL ENCOURAGES TO

REACHING GOAL

64

3.5.26 APPRAISAL FEED BACK

TABLE 3.5.26 APPRAISAL FEED BACK

appraisal feed back No. Of Respondents Percentage (%)

Frequently 33 33

Occasionally 57 57

Rarely 10 10

Never - -

Total 100 100


INTERPRETATION:

From the above table, it can be inferred that 57%of the respondents feel they

are given feedback occasionally, 33% feel frequently and 10% feel rarely.

65

FIGURE 3.5.18 APPRAISAL FEED BACK

66

3.5.27 POSITIVE & NEGATIVE POINTS DISCUSSED

TABLE 3.5.27 POSITIVE & NEGATIVE POINTS DISCUSSED

Positive & negative points No. Of Respondents Percentage (%)

Yes 100 100

No - -

Total 100 100


INTERPRETATION:

From the above table, it can be inferred that 100% of the respondents feel that both

positive and negative points are discussed.

67

3.6.28 ATTITUDE WHEN NEGATIVE POINTS ARE DISCUSSED

TABLE 3.6.28 ATTITUDE WHEN NEGATIVE POINTS ARE DISCUSSED

Negative points discussed No. Of Respondents Percentage (%)

Discouraged 46 46

determined to perform better 27 27

Ready to learn 10 10

Do not want to contribute 17 17

Total 100 100


INTERPRETATION:


discouraged, 27% of the respondents feel determined to perform better, 17% of the

respondents feel they do not want to contribute and 10% of the respondents feel they are

ready to learn.

68

FIGURE 3.5.19 ATTITUDE WHEN NEGATIVE POINTS ARE

DISCUSSED

69

3.5.29 RATING APPRAISAL PROGRAM

TABLE 3.5.29 RATING APPRAISAL PROGRAM

Rate appraisal program No. Of Respondents Percentage (%)

Reliable 10 10

Effective 25 25

Accurate 25 25

Motivating 35 35

Unbiased 5 5

Total 100 100


INTERPRETATION:


performance appraisal programme is motivating, 25% of respondents feel it is effective,

25% of the respondents feel it is accurate, 10% of the respondents are feel it is reliable and

5% of the respondents feel it is unbiased.

70

FIGURE 3.5.20 RATING APPRAISAL PROGRAM

71

3.5.30 COMFORTABILITY IN DISCUSSING PROBLEMS

TABLE 3.5.30 COMFORTABILITY IN DISCUSSING PROBLEMS

Comfortability No. Of Respondents Percentage (%)

Highly Comfortable 75 75

Comfortable 25 25

Neutral - -

Uncomfortable - -

Highly uncomfortable - -

Total 100 100


INTERPRETATION:

From the above table, it can be inferred that 75% of the respondents feel they are

Highly Comfortable, and 25% of respondents feel they are Comfortable in discussing their

problems with their superior.

72

FIGURE 3.5. 21 COMFORTABILITY IN DISCUSSING PROBLEMS

73

3.6.31 RATING EMPLOYEE PERFORMANCE

TABLE 3.6.31 RATING EMPLOYEE PERFORMANCE

Performance rated No. Of Respondents Percentage (%)

Based on abilities and skills 10 10

Based on management reference 25 25

Based on superiority 25 25

Based on contribution 40 40

Total 100 100


INTERPRETATION:

From the above table, it can be inferred that 40% of the respondents feel rating is

based on contribution, 25% of respondents feel rating is based on management reference.

25% of the respondents feel rating is based on superiority and 10% of the respondents feel

it is based on abilities and skills.

74

FIGURE 3.5.22 RATING EMPLOYEE PERFORMANCE

75

3.5.32 CHANGES TAKEN AFTER PERFORMANCE APPRAISAL

TABLE 3.5.32 CHANGES TAKEN AFTER PERFORMANCE

APPRAISAL

Result of Performance Appraisal No. Of Respondents Percentage (%)

Change in motivating strategy 33 33

Re-structuring of organisation or

individual objectives

25 25

Improvement in management-employee

relationship

25 25

Making changes in dissatisfied areas 17 17

No decision taken - -

Total 100 100


INTERPRETATION:

From the above table, it can be inferred that 33 % of the respondents feel there is

change in motivating strategy, 25% of the respondents feel re-structuring of organisation or

individual objectives, 25% of respondents feel there is improvement in management-

employee relationship and 17% of the respondents feel on making changes in dissatisfied

areas.

76

FIGURE 3.5.23 CHANGES TAKEN AFTER PERFORMANCE

APPRAISAL

77

3.6.33 PERFORMANCE APPRAISAL SYSTEM IMPROVING OVER

ALL PERFORMANCE

TABLE 3.6.33 PERFORMANCE APPRAISAL SYSTEM IMPROVING OVER ALL

PERFORMANCE

Effectiveness No. Of Respondents Percentage (%)

Highly effective 34 34

Effective 16 16

Moderate 15 15

In Effective 25 25

Highly ineffective 10 10

Total 100 100


INTERPRETATION:


performance appraisal improve overall performance highly effectively, 25% of the

respondents feel it is ineffective, 16% of respondents feel it is effective, 15% of the

respondents feel it is moderate and 10% of the respondents are feel it is highly ineffective.

78

FIGURE 3.6.33 PERFORMANCE APPRAISAL SYSTEM

IMPROVING OVER ALL PERFORMANCE

79

3.6 STATISTICAL ANALYSIS

3.6.1 CHI-SQUARE TEST

Table 3.6.1.1 Cross tabulation between the changes taken for performance

appraisal and improvement of performance appraisal

Improvement

in overall PA

Changes

Taken

Highly

effectiveEffective Moderate

In

Effective

Highly

ineffective Total

Change in motivating

strategy7 5 9 12 0 33

Re-structuring of organisation or

individual objectives 12 2 6 3 2 25

Improvement in

management-

employee

relationship 11 8 0 6 0 25

Making changes

in dissatisfied

areas 4 1 0 4 8 17

No decision taken

0 0 0 0 0 0

34 16 15 25 10 100

80

Total

STEP: 1

SETTING AN HYPOTHESIS

H0: There is no significant relationship between the changes taken for

performance appraisal and improvement of performance appraisal.

H1: There is significant relationship between the changes taken for

performance appraisal and improvement of performance appraisal.

STEP: 2

TO FIND THE EXPECTED FREQUENCY

Expected frequency = Corresponding row total * Corresponding column total

Total number of samples

STEP: 3

CALCULATION OF CHI-SQUARE VALUE

Formula

(O-E) 2 2 = E

O = Observed frequency

81

E = Expected frequency

2 = Chi square

3.6.1.2 Computation Table for 2

O E O-E (O-E)2 (O-E)2/E

7 11.22 -4.22 17.81 1.59

5 5.28 -0.28 0.08 0.01

9 4.95 4.05 16.40 3.31

12 8.25 3.75 14.06 1.70

0 3.30 -3.30 10.89 3.30

12 8.50 3.50 12.25 1.44

2 4.00 -2.00 4.00 1.00

6 3.75 2.25 5.06 1.35

3 6.25 -3.25 10.56 1.69

2 2.50 -0.50 0.25 0.10

11 8.50 2.50 6.25 0.74

8 4.00 4.00 16.00 4.00

0 3.75 -3.75 14.06 3.75

6 6.25 -0.25 0.06 0.01

0 2.50 -2.50 6.25 2.50

4 5.78 -1.78 3.17 0.55

1 2.72 -1.72 2.96 1.09

0 2.55 -2.55 6.50 2.55

4 4.25 -0.25 0.06 0.01

8 1.70 6.30 39.69 23.35

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

82

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

TOTAL54.04

STEP: 4

Level of significance α = 0.05

Degrees of freedom = (R-1) (C-1)

= (4-1) (5-1) = 12Tabulated value at 5% level of significance and degree of freedom 12 is 21.026

STEP: 5

The calculated value is greater than the tabulated value: 54.04 > 26.296

RESULT

Therefore, reject the Null Hypothesis H0 and accept the alternate Hypothesis H1

INFERENCE

There is significant relationship between the changes taken for performance

appraisal and improvement of performance appraisal.

83

3.6.1.3 Cross tabulation between the proper execution of performance

appraisal and rating employee performance

Proper

Execution

Rating

Performance

Yes No Total

Based on abilities and skills 8 2 10

Based on management reference 19 6 25

Based on superiority21 4 25

Based on contribution30 10 40

Total 78 22 100

84

STEP: 1


H0: There is no significant relationship between the proper execution of

performance appraisal and rating employee performance.

H1: There is significant relationship between the proper execution of

performance appraisal and rating employee performance.

STEP: 2




STEP: 3


Formula

(O-E) 2 2 = E



2 = Chi square

85


O E O-E (O-E)2 (O-E)2/E8 7.80 0.20 0.04 0.01

2 2.20 -0.20 0.04 0.02

19 19.50 -0.50 0.25 0.01

6 5.50 0.50 0.25 0.05

21 19.50 1.50 2.25 0.12

4 5.50 -1.50 2.25 0.41

30 31.20 -1.20 1.44 0.05

10 8.80 1.20 1.44 0.16

TOTAL 0.82

STEP: 4 Level of significance α = 0.05


= (4-1) (2-1) = 3

Tabulated value at 5% level of significance and degree of freedom 3 is 7.82

STEP: 5

The calculated value is lesser than the tabulated value: 0.82 < 7.82

RESULT

Therefore, accept the Null Hypothesis Ho and reject the alternate Hypothesis H1

INFERENCE

86

There is no significant relationship between the proper execution of performance

appraisal and rating employee performance.

Table 3.6.1.5 Cross tabulation between the Rate appraisal program and

performance appraisal developed in relevance to employee job

Improvement

in overall PA

Relevance

To employee

Job

Reliable Effective Accurate Motivating Unbiased Total

Highly Relevant 8 22 20 34 3 87

Relevant 2 3 5 1 2 13

No Idea 0 0 0 0 0 0

Irrelevant 0 0 0 0 0 0

Highly Irrelevant 0 0 0 0 0 0

Total 10 25 25 35 5 100

87

STEP: 1


H0: There is no significant relationship between the Rate appraisal program

and performance appraisal developed in relevance to employee job.

H1: There is significant relationship between the Rate appraisal program

and performance appraisal developed in relevance to employee job.

STEP: 2




STEP: 3


Formula

(O-E) 2 2 = E



2 = Chi square

88


O E O-E (O-E)2 (O-E)2/E8 8.70 -0.70 0.49 0.06

22 21.75 0.25 0.06 0.00

20 21.75 -1.75 3.06 0.14

34 30.45 3.55 12.60 0.41

3 4.35 -1.35 1.82 0.42

2 1.30 0.70 0.49 0.38

3 3.25 -0.25 0.06 0.02

5 3.25 1.75 3.06 0.94

1 4.55 -3.55 12.60 2.77

2 0.65 1.35 1.82 2.80

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

89

0 0.00 0.00 0.00 0.00

TOTAL 7.94



= (5-1) (5-1) = 3


STEP: 5


RESULT


INFERENCE

There is no significant relationship between the Rate appraisal program and

performance appraisal developed in relevance to employee job.

90

Table 3.6.1.7 Cross tabulation between the feel that performance appraisal

encourages and obtain appraisal feedback.

Obtain

appraisal

feedback

Feel PA

Encourages

Frequently occasionally Rarely Never Total

Strongly agree

17 37 3 0 57

Agree 7 11 3 0 21

Neutral 4 4 2 0 10

Disagree5 5 2 0 12

Strongly

disagree 0 0 0 0 0

Total 33 57 10 0 100

91

STEP: 1


H0: There is no significant relationship between the feel that performance

appraisal encourages and obtains appraisal feedback.

H1: There is significant relationship between feel that performance

appraisal encourages and obtain appraisal feedback.

STEP: 2




STEP: 3


Formula

(O-E) 2 2 = E



2 = Chi square

92


O E O-E (O-E)2 (O-E)2/E17 18.81 -1.81 3.28 0.17

37 32.49 4.51 20.34 0.63

3 5.70 -2.70 7.29 1.28

0 0.00 0.00 0.00 0.00

7 6.93 0.07 0.00 0.00

11 11.97 -0.97 0.94 0.08

3 2.10 0.90 0.81 0.39

0 0.00 0.00 0.00 0.00

4 3.30 0.70 0.49 0.15

4 5.70 -1.70 2.89 0.51

2 1.00 1.00 1.00 1.00

0 0.00 0.00 0.00 0.00

5 3.96 1.04 1.08 0.27

5 6.84 -1.84 3.39 0.49

2 1.20 0.80 0.64 0.53

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00

TOTAL 5.50

93



= (5-1) (4-1) = 12


STEP: 5


RESULT


INFERENCE

There is no significant relationship between the feel that performance appraisal encourages

and obtains appraisal feedback.

94

4.1 FINDINGS

Majority (89%) of respondents are male.

Most of the respondents (33%) belong to the age group of 30 to35.

54% of the respondents have above 5 to 10 years of work experience.

Majority (49%) of the respondents are under graduates.

All of the respondents have undergone performance appraisal program once in a year.

100% of the employees interpret the reason for conducting performance appraisal

includes all the factors such as to identify motivating methods, to decide monetary

benefits and identify barriers for performance.

For 87% of the respondents performance appraisal was conducted during working

hours.

For 100% of the respondents the performance appraisal is conducted by outsider.

Most (77%) of the respondents feel that the reason for performance appraisal is

discussed sometimes.

Once in a year the meeting is scheduled for all employees to discuss their performance.

69% of the respondents feel that performance appraisal is related to organizational

goals to some extent.

All of the respondents infer that they are never involved in designing the performance

appraisal system.

87% of the respondents feel that the performance appraisal system is developed highly

relevant to the employees’ job.

All respondents mostly share their opinion and suggestions freely during the

performance appraisal.

All respondents have got the training to fill up the performance appraisal forms.

All of the respondents feel that the appraiser is not aware of the jobs and duties of the

each and every employee.

89% respondents feel the superior will provide informal feedbacks for performance

improvement occasionally.

95

Most (44%) of the respondents feel that the raters are less involved while appraising

employees.

Majority (90%) of the respondents feel that performance appraisal is important to the

organization.

Most (78%) of the respondents says the Performance Appraisal is properly executed in

the organization.

64% of the respondents feel that the top management is highly supportive towards the

performance appraisal system.

Majority (54%) of the respondents feel that performance appraisal system is reviewed

and updated occasionally.

54% of the respondents agree that performance appraisal helps to identify employees’

potential for advancement less effectively.

Most (51%) of the respondents suggest that performance appraisal system needs

improvement

57% of the respondents strongly agree that performance appraisal system encourages to

put more effort in reaching goals.

57% of respondents feel the feedback about the performance appraisal system is

obtained occasionally.

All of the respondents feel both positive & negative points discussed to the employees.

46% of the respondents are discouraged when negative points are discussed.

Majority of the respondents 35% feel the rating appraisal system is motivating.

75 % of the respondents feel they are highly comfortable in discussing problems with

their superior.

Most (40%) of the respondents feel that performance is rated based on contribution

criteria.

33 % of the respondents feel change in motivating strategy is done after conducting

performance appraisal.

Majority of the respondents 34% feel the performance appraisal system is highly

effective in improving overall performance.

96

4.2 SUGGESTIONS

Performance appraisal could be conducted by an person inside the organisation and

one who is familiar with the employees.

Objective of conducting the performance appraisal could be discussed and doubts

can be clarified.

Performance appraisal could be updated regularly to match individual and

organisational goals.

Suggestion could be obtained from employees regarding framing the performance

appraisal system.

Since the performance appraisal is conducted by the outsider, employees’

suggestion during performance appraisal may not reach the top managers. For such

situations suggestion box can be implemented and frequently reviewed.

The appraiser must be familiarized with the employee’s job responsibilities and

duties before conducting performance appraisal.

Feedback on performance could be discussed through formal or informal meetings.

This may enhance the involvement and performance of employees.

Appropriate and experienced appraiser can be appointed for effective performance

appraisal results.

Performance appraisal can developed in such a way to identify the hidden talent

and skills of employees.

Employees having low performance could be called individually, encouraged and

monitored closely to make improvements.

Appraisal feedback is very important in any performance appraisal program. It

could be carefully communicated by making high performers’ increase their target

and low performers to build up their confidence.

97

4.3 CONCLUSION

Performance appraisal may be understood as the assessment of an individual’s

performance in a systematic way. The performance being measured against such factors as

job knowledge, quality and quantity of output, initiative, leadership abilities, supervision,

dependability, co-operation, judgement, versatility, health and the like. It is also help the

developing the strengths & weakness of the employees

Abinaya Auto’s have been conducting performance appraisal for the past four

years. From the study it has been indentified that the performance appraisal is able to

identify employees’ potential and find the motivating factors of employees. The major

drawback is in terms of the appraiser and his knowledge regarding employees job

responsibilities and duties.

Abinaya Auto’s has been running successfully for past 9 years and has created a

good name among its customers and society. People having poor background are given

training and provided with jobs. Performance appraisal can be conducted more effectively

by using the right tools and properly reviewing and updating the performance appraisal

program.

Suggestion form employees and experienced personnel can further enhance and

make the performance appraisal an ideal evaluation system.

98

APPENDIX

Gender : ( ) Male Female ( )

Age group : ( ) 20 – 30

( ) 31 – 40

( ) 41 – 50

( ) 51 – 60

Experience : ( ) Less than 3 years

( ) 4-8 Years

( ) 9 – 15 Years

( ) More than 15 Years

Qualification : ________________

1. How many times dose performance appraisal takes place in your organization?

a) Once a year b) Twice a year c) No specific time

2. What is the reason for conducting performance appraisal in your organization?

a) To identify motivating methods b) To decide monetary benefits

c) Identifying barriers of performance d) All of the above

3. When is the performance appraisal conducted?

a) During working hours b) during non-working hours

4. Who conducts performance appraisal?

a) Superior b) peers c)everyone d) outsider

5. Are you informed the reason for conducting performance appraisal programs?

a) Always b) Sometimes c) Never

6. How many meetings are scheduled in a year to discuss employee performance?

a) Nil b)once c) twice d) thrice

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7. Does the performance appraisal programs relate to organizational goals?

a) To a high extent b) to some extent c) to a low extent

8. Are you involved along with the manager in designing the appraisal system at the

organization?

a) Always b) sometimes c) Never

9. Are the performance appraisal developed in relevance to employee job?

a) Highly relevant b) relevant c) no idea

b) d) irrelevant e) highly irrelevant

10. Do you share your opinion and suggestions freely to the managers during the

appraisal program?

a) Mostly b) rarely c) never

11. Are you given training of how to fill up performance appraisal forms?

a) Yes b) No

12. Is the appraiser aware of your job responsibilities and duties?

a) Completely aware b) Aware to an extent c) Not aware

13. Other than performance appraisal does your superior provide you with informal

feedbacks for performance improvement?

a) Frequently b) Occasionally c) never

14. Are the raters involved while appraising employees?

a) Highly involved b) Less involved c) not involved

15. Do you feel that performance appraisal is important in an organization?

a) highly important b) less important c) not important

d) No idea

16. Is performance appraisal properly executed in your organization?

a) Yes b) no

17. Does top management support and encourage performance appraisal?

a) Highly supportive b) less supportive c) not supportive

18. Is the performance appraisal reviewed and updated now and then?

a) Frequently b) Occasionally c) never

19. Does performance appraisal identify employee potential for advancement?

a) Highly effectively b) effectively c) neutral

d) In effectively e) highly ineffectively

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20. Sate your satisfaction through the performance appraisal program at the

organization?

a) Unsatisfactory

b) Needs Improvement

c) Meets Expectations

d) Outstanding

21. Do you feel that performance appraisal encourages you to put in more effort in

reaching your goals?

a) Strongly agree b) Agree c) Neutral

b) d) Disagree e) Strongly disagree

22. Do you obtain appraisal feed back?

a) Frequently b) occasionally c) Rarely d) Never

23. Are both five & negative points discussed to the employees?

a) Yes b) no

24. How do you feel when negative points are discussed?

a) Discouraged

b) determined to perform better

c) ready to learn

d) do not want to contribute

25. Rate your appraisal program

a) Reliable

b) Effective

c) Accurate

d) Motivating

e) Unbiased

26. Do you feel comfortable in discussing your problems with your superior?

a) Highly Comfortable b) comfortable c) neutral

d) uncomfortable e) highly uncomfortable

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27. On what criteria is employee performance rated?

a) Based on abilities and skills

b) Based on management reference

c) Based on superiority d) Based on contribution

28. What changes have been taken in the organization as a result of performance

appraisal?

a) Change in motivating strategy

b) Re-structuring of organization or individual objectives

c) Improvement in management-employee relationship

d) Making changes in dissatisfied areas

e) No decision taken

29. In general, how effective has your organization performance appraisal system in

improving overall performance

a) Highly ineffective

b) Ineffective

c ) Moderate

d) Effective

e) Highly effective

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REFERENCES

BOOKS

1. Performance Management, Concepts, Practices and Strategies for Organisation success

by S. K. Bhatia, Deep & Deep Publications Pvt. Ltd, 2008.

2. Human Resource Management. By S. Seetharaman & B. Venkateswara Prasad, Scitech

Publication, 2007.

3. Kothari, C.R., Research Methodology - Methods & Techniques , New Delhi, New Age

international (P) Ltd., Publishers, Second Edition,2004.

4. Statistical Methods for Management, By P.N. Arora & S.Arora New Delhi, Sultan

Chand & Sons Publishers, 2005.

WEBSITE

www.yamaha.com

www.citehr.com

www. performance - appraisal.com

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http://www.performance-appraisal.com/

http://www.citehr.com/

http://www.yamaha.com/

A Project Report on Performance Appraisal of Employees

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