Literature Review

1. Mr. Singh has talkedyabout howyperformance appraisal is a very importantyand indispensible tool of an organisationyin his paper “Performance Appraisal- Building Trustyamong Employees or not- the DilemmayContinues”. He gives certain purposes forYperformance appraisal and review conducted by anyorganisation such as promotion of employees in the previous period.

Transfers and demotions, wage andysalary payment, training and manpower development programsyare also based mostly on performance appraisal.

Variousyoutcomes of effective performance appraisal are thatuemployees themselves get to know about howtwell they are performing and whethertthere is any scope of improvement. Regulartupdates on their performance motivate themtto keep performing better. He has suggestedtcertain points to be kept in mind while conducting performancetappraisal in an organisation:

1. The program is well thoughtsout and tailored for the firm2. Management expectations should besrealistic. They should not set goals whichsare either

too high or too low3. Employees should be activesparticipants and be given full opportunity to presentstheir

point of view4. The performance targets should besdecided upon by mutual agreement of employer and

thesemployee

These were some of the majorspoints highlighted by him.

2. Mr. Bagul in his researchfpaper “Study of Employee’s performancefappraisal system” talks about how it is afresponsibility of managers to give a properfand unbiased feedback to their employees. Thisfpaper also highlights how performancefreview is a process where the employer andfemployee sit together to discuss pastfand present performance issues and to agreefwhat future is appropriate on bothfsides.

He has given certain suggestionsfto conduct a proper performance appraisal:

1. Adopting 360 degree feedbackfsystem: this system obtains informationffrom peers, subordinates and internalfand external customers about employee’s performance

2. Company should reduce the parametersfof appraisal as it becomes really cumbersome

3. Lengthy forms befdone away with

4. Proper communicationfof appraisal report

3."With the change in the workforce demographics the corporate world has started depending

more on performance of an individual rather than his skills or experience." "The tertiary sector of

economy- Services- consists of the "soft" parts i.e. activities where people offer their knowledge

and time to improve productivity, performance, potential, and sustainability." "The focus is on

people interacting with people and serving the customer rather than transforming physical

goods." “In a time when hierarchy is being replaced by teamwork, participative leadership,

empowering employees, improving customer service and re-engineering, employers need to look

at other alternatives that will support and enhance personnel development” (Thomas R.

Parker)². "Employers need to look at other alternatives that will enhance their personnel

development." "Organizations seek to reduce resources and increase productivity within the

same frame." "The traditional top down supervisor-only evaluation systems are being replaced

by bilateral evaluation system where subordinates too give a comprehensive description of the

performance and behaviour of their superiors." "This acts like a fair, accurate, credible and

motivating performance yardstick."

The various sectors that combine together to constitute service industry in India are:

Trade

Hotels and Restaurants

Railways

Other Transport & Storage

Communication (Post, Telecom)

Banking

Insurance

Dwellings, Real Estate

Business Services

Public Administration; Defence

Personal Services

Community Services

Other Services

"The Indian Information Technology (IT) industry accounts for 5.09% of the country's GDP

while providing high employment to the work-force." "The IT hubs of India are Bangalore and

Hyderabad." "Other emerging destinations are Chennai, Coimbatore, Kolkata, Kochi, Pune,

Mumbai, Ahmedabad, and NCR." "The evolution of Performance Management as a Human

Resource Management model reflects change of emphasis in organizations to facilitate the model

of leadership." "This has led to recognition of employee contribution to the strategic or long-term

and overarching mission of the organization as a whole." "Development plans should contribute

to organizational goals and the professional growth of the employee."

4. The most maligned (and also dreaded) aspectrof human resource management is therprocess of evaluating an employee's jobrperformance-often referred to as "performance appraisal." Yet performance appraisalris helpful to, and often even essentialrto, accomplishing important goals of allrorganizations. This article is designed to movercloser to an ideal performance appraisalrsystem. Research was conducted to ascertainrall problems that are occurring with presentrperformance appraisal systems. A list of 76 performance appraisalrproblems was reduced to 4 generalrcategories. Performance appraisal systems arerimproved by rectifying commonrshortcomings (e.g. reducing biases, training thoserinvolved, using formats with researchrsubstantiation). However, the most importantrchanges required 1) clarifying thergoals of performance appraisal, 2) focusing onrboth results and behavior appraisals, 3) addingran appraisal category, 4) betterrtiming, and 5) better involvingrconstituencies.