Performance Appraisal at Manatec Electronics
Transcript of Performance Appraisal at Manatec Electronics
I. ABSTRACT In every organization various factors like promotion, training & development program,
incentives, rewards and various other factors are considered and given based on their
performance. So for this almost all the organizations conduct Performance Appraisal for the
employees.
Performance appraisal is the important tool to assess the performance of the employee in
the organization starting from small organization to large organization. Inefficient performance
appraisal system will directly or indirectly affects the functioning of the organization’s
objectives. This induced me to conduct a study on performance appraisal system which is
considered to be very vital for the success or decline of any organization.
The study is carried out in Puducherry. The duration of the study is one month .The
population is 250 with the sample size of 50.
This study includes various objectives like, to understand performance appraisal system
practiced in the organization, to know the employees awareness, and their satisfaction level
about performance appraisal system in the organization and it includes various scope and
limitation.
For this study questionnaire method is followed to collect the data and the research
design is descriptive.
The collected data are tabulated and analyzed using various statistical tools. With the help
of the tabulation various findings are given with some suggestions and recommendations then
the project is finally concluded
LIST OF TABLES
TABLE NO
TITLE PAGE NO
4.1 AGE OF THE RESPONDENTS 27
4.2 GENDER OF THE RESPONDENTS 29
4.3 MARITAL STATUS OF THE RESPONDENTS 31
4.4 EXPERIENCE OF THE RESPONDENTS 33
4.5 EDUCATIONAL QUALIFACTION OF THE RESPONDENTS 35
4.6 LEVEL OF PRESENT JOB 37
4.7 AWARE OF THE PERFORMANCE APPRASIAL SYSTEM 39
4.8 OBJECTIVES OF THE PERFORMANCE APPRASIAL SYSTEM
41
4.9 TYPE OF THE PERFORMANCE APPRASIAL SYSTEM 43
4.10 PRESENT PERFORMANCE LEVEL 45
4.11 PRESENT APPRASIAL SYSTEM 47
4.12 PERFORMANCE APPRASIAL GIVES ADDITIONAL JOB SATISFACTION
49
4.13 LEVEL OF ADDITIONAL JOB SATISFACTION 51
4.14 FREQUENCY OF PERFORMANCE APPRASIAL SYSTEM 53
4.15 FACTORS INDUCING TO INCREASE PERFORMANCE 55
4.16 PERFORMANCE APPRASIAL SYSTEM INCREASE SELF DEVELOPMENT
57
4.17 PROGRAMME TO IMPOVE PERFORMANCE 59
4.18 LEVEL OF SELF DEVELOPMENT 61
4.29 KIND OF PROGRAMME 63
4.20 FEEDBACK EFFECTIVNESS 65
4.21 SATISFACTION LEVEL OF PERFORMANCE APPRASIAL SYSTEM
67
4.22 FEEDBACK ABOUT APPRASIAL 69
4.23 LOW PERFORMANCE LEVEL 71
4.15 COMPARESION OF FACTORS 43
LIST OF TABLE
TABLE NO
TITLE PAGE NO
4.1 AGE OF THE RESPONDENTS 274.2 GENDER OF THE RESPONDENTS 29
4.3 MARITAL STATUS OF THE RESPONDENTS 31
4.4 EXPERIENCE OF THE RESPONDENTS 33
4.5 EDUCATIONAL QUALIFACTION OF THE RESPONDENTS 35
4.6 LEVEL OF PRESENT JOB 37
4.7 AWARE OF THE PERFORMANCE APPRASIAL SYSTEM 39
4.8 OBJECTIVES OF THE PERFORMANCE APPRASIAL SYSTEM
41
4.9 TYPE OF THE PERFORMANCE APPRASIAL SYSTEM 43
4.10 PRESENT PERFORMANCE LEVEL 45
4.11 PRESENT APPRASIAL SYSTEM 47
4.12 PERFORMANCE APPRASIAL GIVES ADDITIONAL JOB SATISFACTION
49
4.13 LEVEL OF ADDITIONAL JOB SATISFACTION 51
4.14 FREQUENCY OF PERFORMANCE APPRASIAL SYSTEM 53
4.15 FACTORS INDUCING TO INCREASE PERFORMANCE 55
4.16 PERFORMANCE APPRASIAL SYSTEM INCREASE SELF DEVELOPMENT
57
4.17 PROGRAMME TO IMPOVE PERFORMANCE 594.18 LEVEL OF SELF DEVELOPMENT 61
4.19 KIND OF PROGRAMME 63
4.20 FEEDBACK EFFECTIVNESS 65
4.21 SATISFACTION LEVEL OF PERFORMANCE APPRASIAL SYSTEM
67
4.22 FEEDBACK OF PERFORMANCE APPRAISAL 69
4.23 LEVEL OF PERFORMANCE APPRAISAL 71
LIST OF CHARTS
CHART NO
TITLE PAGE NO
4.1 AGE OF THE RESPONDENTS 284.2 GENDER OF THE RESPONDENTS 30
4.3 MARITAL STATUS OF THE RESPONDENTS 32
4.4 EXPERIENCE OF THE RESPONDENTS 34
4.5 EDUCATIONAL QUALIFACTION OF THE RESPONDENTS 36
4.6 LEVEL OF PRESENT JOB 38
4.7 AWARE OF THE PERFORMANCE APPRASIAL SYSTEM 40
4.8 OBJECTIVES OF THE PERFORMANCE APPRASIAL SYSTEM
42
4.9 TYPE OF THE PERFORMANCE APPRASIAL SYSTEM 44
4.10 PRESENT PERFORMANCE LEVEL 46
4.11 PRESENT APPRASIAL SYSTEM 48
4.12 PERFORMANCE APPRASIAL GIVES ADDITIONAL JOB SATISFACTION
50
4.13 LEVEL OF ADDITIONAL JOB SATISFACTION 52
4.14 FREQUENCY OF PERFORMANCE APPRASIAL SYSTEM 54
4.15 FACTORS INDUCING TO INCREASE PERFORMANCE 56
4.16 PERFORMANCE APPRASIAL SYSTEM INCREASE SELF DEVELOPMENT
58
4.17 PROGRAMME TO IMPOVE PERFORMANCE 604.18 LEVEL OF SELF DEVELOPMENT 62
4.19 KIND OF PROGRAMME 64
4.20 FEEDBACK EFFECTIVNESS 66
4.21 SATISFACTION LEVEL OF PERFORMANCE APPRASIAL SYSTEM
68
4.22 FEEDBACK OF PERFORMANCE APPRAISAL 70
4.23 LEVEL OF PERFORMANCE APPRAISAL 72
CHAPTER 1
INTRODUCTION
MANATEC ELECTRONICS was established in the year 1987 with this lone
objective of taking the challenges of designing top quality service station equipments to meet the
technological revolution.
Manatec considers itself as a part of the eco-drive .It manufactures eco-friendly
products and mode importantly in the eco-friendly conditions. Accepting the responsibilities
towards the next generations the company considers itself as the part of the “save the earth”
program.
It is an ISO 9001 company. Certified and accredited by the council in July
1998.Manatec is the only ISO 9001 certified manufacturer of garage equipments in India and of
a very few in the world.
It is the first company in India to design installs computerized on-line track setting
equipment in the assembly time of Ashok Leyland ltd, Hosur. It is the only company, which has
developed a Digital Toe Aligner for heavy vehicles. The company is well equipped with in-
house R&D department.
1.1 Product approvals:
Product approvals from HUNDAI, FORD, SUZUKI, TELCO, PEUGEOT,
FIAT, EICHER, MAHINDRA & MAHINDRA, JK TYRES, CEAT TYRES etc., shows their
confidence on the quality and services of MANATEC.
1.2 Awards:
Manatec has received many awards, recognitions & accreditations. Teamwork is the core factor
that makes this organization as emerging leader in all fronts. The awards, recognitions,
associations & accreditations are self-explanatory. The company believes in “Success by
Motivations” and these awards are stepping stones for our ultimate objective. Various
government of India awards was conferred to Manatec including the prestigious “President of
India” Award for the company’s achievements in diverse fields.
These are some of the prestigious award received by Manatec:
1. National Award for Best Entrepreneur & Quality products in Small Scale Sector.
2. Best Productivity Performance Award.
3.”ISO 9001 Accreditation Certificate” from KPMG Quality Registrar, USA.
4. Award for Excellence in R&D (electronics) for the year 1996.
5. Best R&D Efforts Award from Prof. Murali Manohar Joshi.
1.3 Electronics facilities:
Well-equipped electronics lab in 3000-sq.feet area.
Equipment Endurance Testing facilities
- Hot, cold and climate chambers
Equipments validations facilities
- In-hour developed elaborate test beds, special tools, customized test jigs
In-hour PCB CAD facility
1.4 Mechanical Facilities:
Excellent Mechanical Engineering Divisions
- Floor space of 2000 sq.feet.
- Supports all prototyping activities
Tool room
- Latest machines
- Highly skilled manpower
- Can make any intricate, precision plastic moulds, press tools, jigs, fixtures etc
In –house machine shop
- To fabricate:
Sheet metal enclosures
Complex aluminum
Gun metal
Stainless steel parts
Manatec, growing organizations, is in the process of expanding itself towards
globalization.
Manatec located at puducherry, has a massive production facilities, infrastructures,
expertise &more importantly experience for past two decades.
Today Manatec is emerging as a truly global player in the automotive aftermarket with clear
goals and vision on Total Customer Satisfaction
The company has twelve main departments namely;
1. Human resource department
2. Planning department
3. Purchase department
4. Stores department
5. Quality department
6. Assembly & testing department
7. Mechanical department
8. Production department
9. Commercial department
10. Marketing department
11. Accounts department
12. Customer service department
1.5 GENERAL PROFILE OF THE COMPANY
Name : MANATEC ELECTRONICS
Address : C-22, 23& 30, Industrial Estate,
Thattanchavady,
Puducherry – 605009.
Incorporation : 1987
Chairman & M.D
Of the company : Mr.R.Mananathan
Auditor : Mr. Manohar Chowdri
Factory Manager : Mr. S. Vijayaraghavan
Register Office : Puducherry
Branches
of the company : Delhi, Chennai, Bangalore, Mumbai, and Kolkata.
Office Timing : 8.30 am to 5.30 pm
Working days in a week : 6 Days
1.6 HR & Administration Department
The Human Resource Department deals with the employees’ recruitment, training
appraisals, etc. The Administration department deals with the management activities of the
company.
1.6.1 Service Regulations and Rules of Manatec
1.6.1.1 Grade and Salary Structure: Grade:
The employees are graded as Junior Staff (J) Senior Staff (S) Managerial Staff (M)
E.g.: Grade SllZA means Senior Staff GradeII working in zone and ‘A' training.
Training:
Normally, the fresh appointees have to undergo two terms of training A and B Each for
one year period.
During these periods, the salary will be consolidated and the following benefits are
applicable:-
Casual leave: 3 days p.a trainees will not be entitled for any other leave except for the
days on which the factory declares a holiday.
CCA(for zonal employees)
Uniform - after 1 month from the date of joining, if applicable
Overtime wages if applicable.
Notice period for resignation.
Statutory benefits as per law.
Salary: Salary is paid on 1st of every month-For senior grade. Salary is paid on 5th of every month-For junior grade.
ESI at 1.75% and PF at 12% are deducted from the salary as contribution
From employee.
The company contributing 4.75% for ESI
1.6.1.2 Allowance and Welfare:
ATA- Attendance Allowance.
HRA- House Rent Allowance.
CVA- Conveyance Reimbursement
LNA- Lunch Allowance.
CCA- City Compensatory Allowance.
SVA- Service Allowance.
SPA- Special Allowance.
MDA-Medical Reimbursement.
MZA-Magazine Reimbursement.
EZA- Education Allowance.
RLA- Relocation Allowance.
VRA- Vehicle reimbursement.
Attendance Allowance – Rs.150/-per month for 100% attendance.
Rent Allowance – Given according to the grade wise.
Conveyance Allowance – Rs. 375/-per month.
Lunch Allowance – Rs. 500/-per month.
Service Allowance
If the employer completes 10 years of service, he is rewarded with a gold coin.
If the employer completes 15 years of service, he is provided with a tour package.
Medical Reimbursement –Taken according to the grade wise.
Magazine Reimbursement –Taken according to the grade wise.
Educational Allowance (every month Rs.100/-per child for 2 children).
Other Welfare:
Children Book Allowance (yearly once Rs.1000/-per child for 2 children).
Uniform and Shoes:
Uniform – 2 sets of uniform in the odd years and 1 set in the even years.
Washing Allowance – Rs.35/- per month
Marriage gift – Equal for all grades.
Maternity leave for 3 months (according to days).
Newborn baby gift – Equal for all grades.
Top Rankers award for 10th and 12th STD students (employees children).
Sport activities:
For employees within the company:
Internal games – Table Tennis, Carom etc.
External games – running, etc.
1.6.1.3 Overtime:
Junior staff of administration department is only eligible for over time wages,
overtime wages will be twice the basic pay calculated on hourly basis.
. All other employees, working extra hours will be given due consideration
during performance appraisal.
1.6.1.4 Leave and Absenteeism:
Leave and sanctioning authorities:-
Junior &Senior grade employees, who want to avail leave, must get the, Leave
sanctioned from their DIC’s in advance before availing
the same for managers and above leave will be sanctioned by MD
Half day leave
Employees who are applying half day leave in the afternoon, should give
Proper leave letters if anybody, who leaves the work spot with half day leave without giving
proper leave form, will be treated as absent and salary cut will be effected whether leave is
available in their account or not.
1.6.1.5 Punctuality and Permissions:
All employees are expected to be punctual in attending the duty, for each late
coming in a calendar month, one day CL will be deducted.
1.6.1.6 Retirement:
An employee who completes 58 years of age shall retire from the
service. The Age for retirement will be calculated based on the date of birth particulars
Mentioned in birth certificate
1.6.1.7 Leave travel Concession:
Employees who have completed a minimum of 2 years or more ( from the
Date of confirmation) of continuous service in the company.
Senior and Managerial grade employees are eligible for LTC.
1.6.1.8 Telephone and Mobile:
Telephone at residence:
The rent will be paid by the company.
Telephone bills will be paid by the company for official STD or ISD calls.
Mobile Phone and SIM card:
Mobile phone will be issued to the selected employees for the purpose of
effective official communication.
SIM card selection will be based on the location and requirement
While proceeding on long leave, the phone should be handed over to office.
1.6.1.9 Library:
Library is available under the control of R&D department .The library has, as much
as books on different topics.
The books can be retained only for 15 days, for any loss of book the value will be
recovered from the employee.
1.6.1.10 Demonstration Kits:
Sales engineers / service engineers have to carry demo or service kit for official
purpose. Such demo kits will be signed and taken by the concerned employee while going on
official tour. It is the duty of such kits as they are very costly. In the event of loss or theft of the
kit during official tour, the employee will be solemnly responsible for the loss and the value of
the cost kit will be recovered from the employees.
1.6.1.11 Performance Appraisal:
From the date of joining, an induction trainee will be there for 1week-2 months
depending upon employee.
An employee has to undergo 6 months provision period, after the provision
period only an employee will be permanent to the job.
In Manatec, the performance appraisal will be done for all employees once in a
year.
The HR department will forward the appraisal form to the HR section, the
complete incident / remark about the employee for past one year along with the
measures of performance, parameters and VST- (Value Skill Threat) parameters
for proper evaluation and feedback is made.
The superior will asses the performance of the subordinate
The superior will forward the employee appraisal to boss.
The boss will put up his recommendation to the HR department.
HR department will subject to management for final assessment and grant up
the increment and return to HR department.
HR department will prepare performance feedback letter indicating the revised
salary, promotion etc, and also give the feedback about the positive and
negative points and also the area should improve for their improved
performance.
1.6.1.12 Increment:
The employees are eligible for annual increment for each grade is given in the
salary structure. The increment shown is, under normal performance levels for poor/excellent
performance the management may reduce or enhance the increment
1.6.1.13 Resignation:
They are classified as 2 category i.e., normal and abnormal resignation.
Normal Resignation:
If an employee wants to resign his/her job he must first inform to his immediate
superior and then he will forward to administration department through their HOD/DIC by
proper channel mode and then it will be back within 7 days to the consent employee.
Abnormal Resignation:
If an employee performance is not satisfactory and his performance is poor the
management may give resignation letter to that employee.
1.6.1.14 Termination:
By giving the respective notice period/ gross pay in lieu of notice based on that,
gross pay will be calculated and paid to the employee in lieu of notice.
If the employee is terminated:
He is not eligible for EL encashment, medical allowance, exgratia payment etc.
He is also not eligible for service certificate.
1.7 The products produced by Manatec are:
1) Tyre Changer
2) Wheel Aligner
3) Wheel Balancer
4) Tyre Inflator
5) Two – Post Lift
6) Head Lamp Aligner
7) Diesel – Smoke Meter
Tyre Changer
Wheel Balancer
Model - TC-XL-40
This machine is used to change the tyre
automatically with less manual power. It is used
for mounting & de-mounting the tyres of bus, car,
etc.
Model - WB-DL-50
Wheel Balancer is used to balanced
the wheels, (i.e.) the inner balance & outer
balance.
Tyre Inflator
Two Post Lift
Model - Air – O – matic D
Tyre Inflator is used to check the
air pressure in the wheels of the vehicles.
This automatically inflates air into the
wheels according to the capacity of the
vehicles. In case of excess air, deflation
takes place automatically.
Head Lamp
Model - RHIND 3S
This is used in the service station for
lifting cars & LCV’s up to 3 tons capacity 7
the minimum space required to fit this
machine is about 3500 feet. By using this
machine the vehicles can be lifted up to a
height of 150 to 1875mm
Model - HLA 1000 LX
The Head Lamp Aligner is used to
check and align the Head Lamp beams of
all cars, LCV’s and Trucks.
Wheel Aligner
DIESEL SMOKE METER
Model - ARJUN or Pac
This machine is used to align the
wheels for the vehicle within the required
Angles between the front 7 rear wheels.
This machine was introduced with Dos
based software and then with Windows
based software.
Model – ECO smoke
Diesel smoke meter is capable of
measuring smoke opacity of diesel vehicle
exhaust in percentage opacity and K – Value
with measurement of RPM &engine oil
temperature. It weighs 7 Kg
1.8 Introduction to the study
The most valuable asset for a company is its people. Whist all other assets depreciate over
a period of time, people as an asset appreciate over a period of time. Longer a person has been
with a company; greater is his value in terms of experience & contribution, and therefore, his
price.
An organization’s goals can be achieved only when people put in their best efforts. How
to ascertain whether an employee has shown his or her best performance on a given job? The
answer is performance appraisal.
CHAPTER 2
REVIEW OF RELATED LITERATURE
2.1 Performance Appraisal - Definition
“The overall objective of performance appraisal is to improve the efficiency of an
enterprise by attempting to mobilize the best possible efforts from individuals employed in it.
Such appraisals achieve four objectives including the salary reviews, the development and
training of individuals, planning job rotation and assistance promotions”.
-CUMMINGS
“Performance Appraisal is the systematic, periodic and an impartial rating of an employee’s
excellence in matters pertaining to his present job and his potential for a better job”
-FLIPPO
2.2 Characteristics of Performance Appraisal
The main characteristics of performance appraisal are as follows.
Performance appraisal is a process consisting of a series of steps.
It is the systematic examination of an employee’s strengths and weaknesses in terms
of the job.
Performance appraisal is a scientific or objective study.
It is an ongoing or continuous process wherein the evaluations are arranged
periodically according to a definite plan.
The main purpose of performance appraisal is to secure information necessary for
making objective and decisions on employees.
2.3 Advantages of Performance Appraisal
1. It provides information for making and enforcing decisions about promotions, pay
increases, lay off transfers.
2. It serves to guide employee development.
3. It puts a psychological pressure on people to improve performance on the job.
4. It serves to maintain fair relationships in groups.
5. It makes executives more observant of their subordinates.
6. It serves as a means for evaluating the effectiveness of devices used for the selection and
classification of workers.
7. Wage increase may be justified.
8. Deficiencies and shortcoming may be removed.
9. Employee may also introspect himself in the light of performance.
2.4 Factors Affecting Performance Appraisal Systems
Performance appraisal programs are affected by some factors. Therefore for
implementing good appraisal systems the following are necessary.
1. It should be easily understandable. The forms, which are more difficult to read and
understand, are not effective performance appraisal systems.
2. The appraisal programs must have support of all line people who administer it. If line
people think it is too theoretical, too ambitious, and too unrealistic or that it has been
foisted on them by ivory – tower staff consultants who have no comprehension of the
demands on the time of the line operator.
3. The appraisal system should fit the organizational operations and structure the form
constructed and the factors framed should be suitable for the organizational culture and
structure.
4. The appraisal system should be valid and reliable.
5. The performance appraisal programs should have built in incentives.
6. The appraisal form should be periodically evaluated to ensure that it meets its purpose
2.5 Steps of Performance Appraisal
Performance appraisal
Establishing standards of performance
Communicating performance appraisal
Measuring actual performance
Comparing actual performance with standard laid
Discussion of appraisal with employees
Corrective actions
2.6 The Way Forward Process
Career development& Successions
Planning
RewardingPerformance
Competencies
Training & Development
It is essential that every employee enjoy the benefit of looking at his performance
appraisal at least once in a year. A manager should analyze the performance of the employees
objectively against the set standards. It is desirable for the manager to meet and discuss with the
employees about the appraisal process before writing as it fosters mutual understanding of the
process and to that extent it enhances the employees’ acceptance of the outcome.
2.7 Performance Appraisal System Attributes: Clarity, Openness, and Fairness
The performance appraisal system must possess the attributes of clarity, openness, and
fairness. These attributes are related to the historic values of the student affairs profession. While
specific implementation of these attributes may vary, the following should be represented in
effective performance appraisal:
2.7.1 Ongoing Review of Position and Performance - Effective performance appraisal
systems conduct ongoing evaluations of both the position and the staff member occupying it.
With ongoing position analysis and performance appraisal, there are few surprises, and changes
in the environment are quickly incorporated into the official appraisal system.
2.7.2 Job Descriptions - Job descriptions should be reliable, valid, understandable, and
specific enough to provide direction for staff behavior. Job descriptions should focus on what the
staff member does (e.g. advises the student government association) and what outcomes are
expected. These outcomes should be clearly linked to departmental and institutional objectives
and needs.
Job descriptions should use action words such "plans" or "supervises" rather than "demonstrates
initiative" or "is likable." Job descriptions should provide guidelines for staff so they know the
specific behaviors expected to perform. The responsibilities of the staff member should be listed
in order of importance and weighted relative to importance, if possible.
2.7.3 Participatory and Interactive Appraisal - Appraisal system processes should be
designed in concert with all stakeholders and open to constant interaction with them. Plans made
jointly by staff and administrators have a better chance of working than plans made
independently by either party.
2.7.4 Workable formats that Avoid Systemic Bias - Effective performance appraisal
systems must include workable formats that avoid systematic biases. Checklists of performance
criteria completed at the same time every year should be avoided. This type of approach simply
fails to produce any useful information for individual or organizational improvement.
Other biases include giving preferential treatment to some but not all staff, rating all staff the
same, being overly lenient or overly harsh toward some or all staff, and practicing conscious or
unconscious racial or gender prejudice.
Adopting a format that includes the standards of clarity, openness, and fairness and that involves
more than one appraiser may help to control some of these biases.
2.8 Susan M. Heathfield of
The Traditional Performance Appraisal Process
Says, “Managers cite performance appraisal as the task they dislike the most. This is
understandable given that the process of performance appraisal, as traditionally practiced, is
fundamentally flawed. It is incongruent with the values-based, vision-driven, mission-oriented,
participative work environments favored by forward thinking organizations today. It smacks of
an old fashioned, paternalistic, top down, autocratic mode of management which treats
employees as possessions of the company.”
2.9 Bacal’s of
Performance Management & Appraisal and Work-Related Articles
Says, “Performance management and performance appraisal (or employee reviews,
annual reviews, etc) are some of the most misused tools anywhere. A fortune is wasted on inept
processes, poor forms, and result from mistaken ideas about what performance management is
for, and why we do it.”
2.10 Gerard McLoughlin of
How to Prepare for a Performance Appraisal
Says, “Performance appraisal should be treated as an ongoing developmental process
rather than a formal once-a-year review. Both employee and reviewer to ensure that targets are
being achieved should closely monitor it. By preparing yourself diligently and demonstrating a
willingness to co-operate with your reviewer to develop your role, you will create a positive
impression.
To enable you to assess your own performance as objectively as possible, try to view it from
your manager's perspective. Make sure you are conversant with the company's assessment
policies and procedures.’’
2.11 From DULEWICZ
Says that "... A basic human tendency to make judgments about those one is working with,
as well as about oneself." Appraisal, it seems, is both inevitable and universal. In the absence of
a carefully structured system of appraisal, people will tend to judge the work performance of
others, including subordinates, naturally, informally and arbitrarily.
Performance appraisal systems began as simple methods of income justification. That is,
appraisal was used to decide whether or not the salary or wage of an individual employee was
justified.
The process was firmly linked to material outcomes. If an employee's performance was found to
be less than ideal, a cut in pay would follow. On the other hand, if their performance was better
than the supervisor expected, a pay rise was in order.
2.12 From KREIN
Says, “Appraisers should not confront employees directly with criticism. Rather, they
should aim to let the evidence of poor performance emerge "naturally" during the course of the
appraisal interview. This is done by way of open-ended questioning techniques that encourage
the employee to identify their own performance problems.
.
CHAPTER 3
OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE:
To understand the Performance Appraisal System practiced in Manatec Electronics
SECONDARY OBJECTIVE:
To know the employees awareness & level of satisfaction about the Performance
Appraisal practiced in the organization
To identify the factors inducing to increase the performance of an employee
To know the factors necessary for appraising the employees.
To provide suggestions to the management in improving Performance Appraisal System.
CHAPTER 4
RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem.
4.1 RESEARCH – MEANING AND DEFINITION
Research is an art of scientific investigation. The advanced learner’s dictionaries of
current English lay are down the meaning of research as, “a careful investigation (or) inquiry
especially through search for new facts in any branch of knowledge”. Redmen and Mary define
research as a “systematic effort to gain knowledge”...
4.2 RESEARCH DESIGN
A research design is purely and simply the framework or plan for a study that
guides the collection and analysis of data. Generally a research design is a blue print of the
research that is to be followed in completing the study.
It is descriptive research type are those, which are concerned with describing the
characteristics of a particular individual or of a group, where we cannot control the variables
4.3 SAMPLING DESIGN
Population : 250 Members
Sampling Unit : Employees
Sample Size : 50 nos.
Sampling Procedure : Simple Random Sampling
4.4 METHOD OF DATA COLLECTION:
4.4.1 Primary data are measurements observed and recorded as part a study to collect original
data. I.e. to conduct first hand investigation.
4.4.2 Secondary data was collected with the help of
Company records
Annual Reports
Product Catalogue
Discussion with the personnel manager and staff.
4.5 RESEARCH INSTRUMENT:
Questionnaire was used to conduct the survey among 50 employees which
includes open-ended and closed ended questions
4.5.1 Open – ended questions:
A question which requires the respondent to answer it in his own words.
4.5.2 Closed ended question:
Likert scale:
A scale by the likert method in which subjects are given a number of statements
and asked to indicate their agreement or disagreement with those statements.
Dichotomous question:
Here the respondents are under the obligation to answer between two clear cut
alternatives like ‘YES’ or ‘NO’.
4.6 TOOLS FOR ANALYSIS:
For the analysis of data and its interpretations, various tools of research were used.
i. Percentage Method:
It refers to special kind of ratio. It is used to making comparisons between two or
more series of data. Percentages are used to describe relationships.
Percentage = No. Of Respondents X 100
Total No. Of Respondents
ii. Chi-Square Test:
It is one of the simplest and most widely used non-parametric tests, in statistical
work. The quantity describes the magnitude of discrepancy between theory and observation. i.e.
with the help of 2 test we can know whether a discrepancy between theory and observation can
be attributed to chance or whether it results from the inadequacy of the theory to fit the observed
facts.
The formula for computing chi-square ( is as follows
iii Weighted Average Method
In the Weighted Average Method, the weighted average can be calculated by the
following formula
XW = WX/X
Here XW represents the weighted average
“X1, X2, X3, X4,………..Xn” represents the value for variable values
“W1, W2, W3, W4 …Wn” represents the weight age given to the variable.
Steps
Multiply the weights (W) by the variables (X) to obtain WX
Add all WX to obtain WX
Divide WX by sum of the weights (X) to get weighted average.
iv Rank Correlation
Rank Correlation is the technique of determing the degree of correlation between
two variables in case of ordinal data where ranks are given to the different values of the variables
Spearman’s Coefficient of Correlation (or) r = 1- 6di2
n (n2-1)
di = difference between rank of the two variables
n = number of pair of observations
/
.
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
TABLE 4.1
Age of the Respondents
Opinion No of respondents Percentage (%)
Less than 25 7 14.0
25-35 29 58.0
35-45 12 24.0
45-55 1 2.0
Greater than 55 1 2.0
Total 50 100.0
Inference
58% of the respondents belong to the age of 25-35 years
24% of the respondents belong to the age of 35-45 years
CHART 4.1
TABLE 4.2
Gender
Opinion No of respondents Percentage (%)
MALE 37 74.0
FEMALE 13 26.0
Total 50 100.0
Inference
From the above table it is inferred that 74% of the respondents are male and 26%
of the respondents are female.
CHART 4.2
TABLE 4.3
Marital Status
Opinion No of respondents Percentage (%)
Married 28 56.0
Unmarried 22 44.0
Total 50 100.0
Inference
From the above table it is inferred that 56% of the respondents are married and
44%
Of the respondents are unmarried.
CHART 4.3
TABLE 4.4
Experience
Opinion No of respondents Percentage (%)
LESS THAN 2 13 26.0
2-4 21 42.0
4-6 7 14.0
GREATER THAN 6 9 18.0
Total 50 100.0
Inference
26% of the respondents belong to the experience of less than 2 years.
42% of the respondents belong to the experience of 2-4 years.
18% of the respondents belong to the experience of greater than 6 years.
CHART 4.4
TABLE 4.5
Educational Qualification
Opinion No of respondents Percentage (%)
Illiterate 1 2.0
Secondary 3 6.0
Diploma 8 16.0
UG 35 70.0
PG 3 6.0
Total 50 100.0
Inference
From the above table it is inferred that 16% of the respondents are Diploma, 70%
of the respondents are UG and 6% of the respondents are PG
CHART 4.5
TABLE 4.6
Describe Present Job
Opinion No of respondents Percentage (%)
Challenging 9 18.0
Interesting 37 74.0
Normal 4 8.0
Total 50 100.0
Inference
From the above table shows that 18% of the respondents have said that their
present job is challenging and 74% of the respondents have said that their present job
is interesting and 8% of the respondents have said that their present job is normal.
CHART 4.6
TABLE 4.7
Aware of Performance Appraisal
Opinion No of respondents Percentage (%)
Yes 50 100.0
Inference
From the above table it is found that 100%of the employees are having awareness
about the grading provided in the performance appraisal system.
CHART 4.7
TABLE 4.8
Objectives Performance Appraisal
Opinion No of respondents Percentage (%)
Yes 46 92.0
No 4 8.0Total 50 100.0
Inference:
From the above table it is found that 92% of the employees are aware of the
objectives of performance appraisal system, only 8% of them are unaware about the
objectives of performance appraisal system.
CHART 4.8
TABLE 4.9
Type of Performance Appraisal
Opinion No of respondents Percentage (%)
Open System 1 2.0
confidential system 48 96.0
Total 50 100.0
Inference
From the table it is found that 2% of employees are followed with open-system and for
96% of employees confidential system is followed.
CHART 4.9
TABLE 4.10
Present Performance Level
Opinion No of respondents Percentage (%)
Good 10 20.0
Fair 30 60.0
Needs Improvement 10 20.0
Total 50 100.0
Inference:
From the above table shows that 20% of the respondents opinions were good,
60%of the respondents opinion were fair and 20% of the respondents opinions were
needs improvement towards performance level.
CHART 4.10
TABLE 4.11
Present Appraisal System
Opinion No of respondents Percentage (%)
Satisfied 40 80.0
Partially Satisfied 10 20.0
Total 50 100.0
Inference:
From the above table shows that 80% of the respondents were satisfied, 20% of
respondents were partially satisfied towards performance appraisal system.
CHART 4.11
TABLE 4.12
Performance Appraisal Additional Satisfaction
Opinion No of respondents Percentage (%)
Yes 49 98.0
No 1 2.0
Total 50 100.0
Inference:
From the above table shows that about 98% of the respondents have said that
were additional job satisfaction towards the performance appraisal and 2% of the
respondents have no such additional job satisfaction.
CHART 4.12
TABLE 4.13
Level of Add Job Satisfaction
Opinion No of respondents Percentage (%)
At Very High
Level4 8.0
High Level 38 76.0
Moderate 8 16.0
Total 50 100.0
Inference:
From the above table shows that the level of additional job satisfaction 8% of the
respondents at very high level and 76% of the respondents have that their level of
additional job satisfaction is high and 16% of the respondents have said their have of
additional job satisfaction is moderate.
CHART 4.13
TABLE 4.14
Frequency of PA
Opinion No of respondents Percentage (%)
Quarterly 4 8.0
Half-yearly 1 2.0
Annually 45 90.0
Total 50 100.0
Inference:
From the table it is found that 8% of employees, the time span for conducting the
performance appraisal process is quarterly, for 2% of employees the time span is half-
yearly, for 90% of employees the time span is annually . For majority of employees
annual time span is followed.
CHART 4.14
COMPARASION OF FACTORS APPRAISING THE EMPLOYEES
TABLE 5.15
Opinion
Commitment
of Work
Discipline
Job Knowle
dgeAttendan
ce
Relation with
Superior and
Subordinates
Plan of Work
Decision Making
Leadership
Qualities
Communication
Skills
X Y X Y X Y X Y X Y X Y X Y X Y X Y
Agreed43 86 48 96 48 96 44 88 42 84 43 86 48 96 42 84 26 52
Partially agreed
6 12 2 4 2 4 6 12 8 16 7 14 2 4 8 16 24 48
Disagreed
1 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
X = No of respondents
Y = Percentage (%)
Inference
From the above table it is found that, majority of the employees are agreed to the
factors of inducing to increase their performance, mainly to the factors of Discipline
96%, Job Knowledge 96%, and Decision Making 96
COMPARASION OF FACTORS APPRAISING THE EMPLOYEES
CHART 5.15
Agreed
Partially agreed
Disagreed
Rows
10.00 20.00 30.00 40.00
Values
Commitment of Work Count
Discipline Count
Job Knowledge Count
Attendance Count
Relation with Superior and Subordinates Count
Plan of Work Count
Decision Making Count
Leadership Qualities Count
Communication Skills CountF
acto
rs
TABLE 4.16
Factors Inducing to Increase Performance
Opinion No of respondents Percentage (%)
Commitment of Work 1 2.0
Discipline 10 20.0
Job Knowledge 8 16.0
Relation with Superior
and Subordinates10 20.0
Decision Making 14 28.0
Leadership Qualities 6 12.0
Communication Skill 1 2.0
Total 50 100.0
Inference
20% of the respondents belong to the factor of Discipline
20% of the respondents belong to the factor of Relation with superior and
Subordinates
28% of the respondents belong to the factor of Decision Making.
CHART 4.16
Commitment of Work
Discipline
Job Knowledge
Relation with Superior and Subordinates
Decision Making
Leadership Qualities
Communication Skills
Factors Inducing to Increase Performance
TABLE 4.17
Performance Appraisal - Self Development
Opinion No of respondents Percentage (%)
Yes50 100.0
Inference:
From the above table shows that 100% of the respondents have facilitated to
increase self-development
CHART 4.17
TABLE 4.18
Employee Performance Programme
Opinion No of respondents Percentage (%)
Yes50 100.0
Inference:
From the above table shows that 100% of the respondents have facilitated to
know the employee performance programme.
CHART 4.18
TABLE 4.19
Level of Self Development
Opinion No of respondents Percentage (%)
Very High 1 2.0
High 43 86.0
Moderate 6 12.0
Total 50 100.0
Inference:
From the above table it is found that 86% of the respondents feel high, 12% of the
respondents feel Moderate
CHART 4.19
TABLE 4.20
Kind of Programme
Opinion No of respondents Percentage (%)
Group Discussion 25 50.0
Course
Undertaken25 50.0
Total 50 100.0
Inference:
From the above table shows that 50% of the respondents are undertaking group
discussion, 50%of the respondents are undertaking course undertaken
CHART 4.20
TABLE 4.21
Feedback Effectiveness
Opinion No of respondents Percentage (%)
Helps in Knowing
One's Own 41 82.0
Potential
Sense of
Recognition9 18.0
Total 50 100.0
Inference
82% of the respondents belong to effectives of helps in knowing one’s own
potential.
18% of the respondents belong to effectives of Sense of Recognition.
CHART 4.21
TABLE 4.22
Satisfaction of Performance Appraisal
Opinion No of respondents Percentage (%)
Satisfied 42 84.0
Moderate 8 16.0
Total 50 100.0
Inference
From the above table it is inferred that 84% of employees are satisfied with
the following system, and 16% of them are moderate and none of the employees are
dissatisfied with the following system.
CHART 4.22
TABLE 4.23
Feedback of Performance Appraisal
Opinion No of respondents Percentage (%)
Yes50 100.0
Inference:
From the table it is found that 50% of employees are given feedback.
CHART 4.23
TABLE 4.24
Low Performance Level of Performance Appraisal
Opinion No of respondents Percentage (%)
By Training50 100.0
Inference:
From the table it is found that 50% of employees are given by training.
CHART 4.24