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SUMMER TRAINING REPORT
ON
PFRFORMANCE APPRAISAL
IN
SUBMITTED TO M.D.UNIVERSITY, ROHTAK IN THE PARTIAL
FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF BBA (CAM)
(Session: 2011 – 2012)
Submitted To: - Submitted By:-
Controller of examination shivam
M.D. University BBA(CAM) 5thSemester
Rohtak
DAV INSTITUTE OF MANAGEMENT
NH-3 , NIT, FARIDABAD
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ACKNOWLEDGEMENT
First of all I thanks to almighty god. He creates everything. Then I am grateful to my
parents for their love and affection, which has been the source of motivation for me
forever.
I owe my gratitude to the entire staff of the “RELIANCE LTD” who provided me the
necessary and relevant information towards the completion of my survey report. I thank
them for the critical suggestion and sound logical and design improvement during the
project. Without their timely help it has been very difficult for me to submit this project
well me on time.
The project would not have been completed without the guidance and encouragement of
“Pankaj Rajawat” who provided me all the facilities and also helped me in choosing my
project.
I am very thankful our college guide “faculty guide of DAV Institute of Management” for
giving me the input and support, without her guidance the project would not have been
completed
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DECLARATION
I hereby to declared that my project on human resource management on the titled
"PFRFORMANCE APPRAISAL" prepared by me under the guidance “MR. Pankaj
Rajawat and faculty guide of DAV Institute of Management ” is my original work
findings in there part are based on the data collected by me during the course of object
work while preparing this report. I have not copied from other project report submitted
for a similar purpose.
SHIVAM
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INDEX
TOPICS PAGE
1. INTRODUCTION
2. REVIEW OF LITERATURE
3. THE COMPANY
MAIN TEXT
HRD MODEL
ORGANSATION CHART
INDUSTRY PROFILE
4. DATA ANALYSIS AND PRESENTATION
4.1 PRESENTATION & RECOMMENDATION
4.2 INTERPRETATION
5. CONCLUSION AND RECOMMENDATION
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Performance appraisal
The process of obtaining, analyzing and recording information about the relative worth
of an employee. The focus of the performance appraisal is measuring and improving the
actual performance of the employee and also the future potential of the employee. Its aim
is to measure what an employee does.
According to Flippo, a prominent personality in the field of Human resources,
"performance appraisal is the systematic, periodic and an impartial rating of an employ
yee’s excellence in the matters pertaining to his present job and his potential for a better
job." Performance appraisal is a systematic way of reviewing and assessing the
performance of an employee during a given period of time and planning for his future.
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.
performance appraisal, employee appraisal, performance review, or (career) development
discussion[1] is a method by which the job performance of
an employee is evaluated (generally in terms of quality, quantity, cost, and time) typically
by the corresponding manager or supervisor .[2] A performance appraisal is a part of
guiding and managing career development. It is the process of obtaining, analyzing, and
recording information about the relative worth of an employee to the organization.
Performance appraisal is an analysis of an employee's recent successes and failures,
personal strengths and weaknesses, and suitability for promotion or further training. It is
also the judgement of an employee's performance in a job based on considerations other
than productivity alone
The history of performance appraisal is quite brief. Its roots in the early 20th century can
be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for
the same may be said about almost everything in the field of modern human resources
management.
As a distinct and formal management procedure used in the evaluation of work
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performance, appraisal really dates from the time of the Second World War - not more
than 60 years ago.
Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things
historical, it might well lay claim to being the world's second oldest profession!
There is, says Dulewicz (1989), "... a basic human tendency to make judgements 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..
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.
Little consideration, if any, was given to the developmental possibilities of appraisal. If
was felt that a cut in pay, or a rise, should provide the only required impetus for an
employee to either improve or continue to perform well.
Sometimes this basic system succeeded in getting the results that were intended; but more
often than not, it failed.
For example, early motivational researchers were aware that different people with
roughly equal work abilities could be paid the same amount of money and yet have quite
different levels of motivation and performance.
These observations were confirmed in empirical studies. Pay rates were important, yes;
but they were not the only element that had an impact on employee performance. It was
found that other issues, such as morale and self-esteem, could also have a major
influence.
As a result, the traditional emphasis on reward outcomes was progressively rejected. In
the 1950s in the United States, the potential usefulness of appraisal as tool for motivation
and development was gradually recognized. The general model of performance appraisal,
as it is known today, began from that time.
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Modern Appraisal
Performance appraisal may be defined as a structured formal interaction between a
subordinate and supervisor, that usually takes the form of a periodic interview (annual or
semi-annual), in which the work performance of the subordinate is examined and
discussed, with a view to identifying weaknesses and strengths as well as opportunities
for improvement and skills development.
In many organizations - but not all - appraisal results are used, either directly or
indirectly, to help determine reward outcomes. That is, the appraisal results are used to
identify the better performing employees who should get the majority of available merit
pay increases, bonuses, and promotions.
By the same token, appraisal results are used to identify the poorer performers who may
require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their country that might restrict their
capacity to dismiss employees or decrease pay.)
Whether this is an appropriate use of performance appraisal - the assignment and
justification of rewards and penalties - is a very uncertain and contentious matter.
Controversy, Controversy
Few issues in management stir up more controversy than performance appraisal.
There are many reputable sources - researchers, management commentators,
psychometricians - who have expressed doubts about the validity and reliability of the
performance appraisal process. Some have even suggested that the process is so
inherently flawed that it may be impossible to perfect it (see Derven, 1990, for example).
At the other extreme, there are many strong advocates of performance appraisal. Some
view it as potentially "... the most crucial aspect of organizational life" (Lawrie, 1990).
Between these two extremes lie various schools of belief. While all endorse the use of
performance appraisal, there are many different opinions on how and when to apply it.
There are those, for instance, who believe that performance appraisal has many important
employee development uses, but scorn any attempt to link the process to reward
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outcomes - such as pay rises and promotions.
This group believes that the linkage to reward outcomes reduces or eliminates the
developmental value of appraisals. Rather than an opportunity for constructive review
and encouragement, the reward-linked process is perceived as judgmental, punitive and
harrowing.
For example, how many people would gladly admit their work problems if, at the same
time, they knew that their next pay rise or a much-wanted promotion was riding on an
appraisal result? Very likely, in that situation, many people would deny or downplay their
weaknesses.
Nor is the desire to distort or deny the truth confined to the person being appraised. Many
appraisers feel uncomfortable with the combined role of judge and executioner.
Such reluctance is not difficult to understand. Appraisers often know their appraisees
well, and are typically in a direct subordinate-supervisor relationship. They work together
on a daily basis and may, at times, mix socially. Suggesting
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OBJECTIVES
Employee Performance Management has been designed to achieve the following
objectives: -
• To effect promotions based on competence and performance.
• To assess the training and development needs of employees.
• To decide upon a pay raise where (as in the unorganized sector) regular pay scales
have not been fixed.
• To let the employees know where they stand in so far as their performance is
concerned and to assist them with constructive criticism and guidance for the purpose
of their development.
• To improve communication. Performance appraisal provides a format for dialogue
between the superior and the subordinate, and improves understanding of personal
goals and concerns. This can also have the effect of increasing the trust between therater and the ratee.
• Finally, performance appraisal can be used to determine whether HR programs such,
as selection, training and transfers have been effective or not.
• Provide inputs for salary increments, additional responsibilities and promotions.
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Broadly, Performance Management serves four objectives: -
Table below outlines these and specific uses more c1early:-
Multiple Purposes of Performance Assessment
General Applications Specific Purpose
Developmental Uses Identification of individual needs
Performance feedback
Determining transfers and job assignments
Administrative Uses/Decisions Salary
Promotion
Retention or Termination
Lay-offs
Identification of poor performers
Organizational Maintenance/Objectives HR Planning
Determining organization training needs
Evaluation of organizational goal
achievement
Information for goal identification
Evaluation of HR systems Reinforcement of
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IMPORTANCE
In today's fast-paced business world, it may seem like a chore for organizations to spend
precious resources planning, developing and engaging m employee performance
management. The three key reasons for every organization to give performance reviews
are:
1. Performance Management help employees become better workers:
All good managers provide regular feedback to employees so that they can develop into
skilled workers that will be useful to the organization. A written performance evaluation
is a way of formalizing this feedback and lets employees know that how they perform
counts. A formal review also allows employees to take a stop back from what they are
doing, to focus on how well they are doing it. From this vantage point, they can make
action plans to improve or alter behavior and set new personal goals. Encouraging
people' to work to their full potential is the ultimate goal of a performance evaluation.
2. Performance Management can help determine employees compensation:
As pay-for-performance compensation grows in importance, so too docs the need for an
objective performance metric. The best evaluation forms serve this purpose and bring
clarity to the manner" in which employees are compensated. From sales people, who are
paid by their ability to "meet plan", to non-revenue generating workers whose goals are
less tangible, performance appraisals serve to state objectives and "then measure the
degree to which those objectives are achieved.
3. Performance Management can protect organizations:
In today's litigious society, having formal documentation of an employee's performance
is an important protection device. Detailed record of poor performance and unmet goals
can be an effective counter to claims of bias in the case of a dismissed worker and arc
often held up by the courts as legitimate, justification for termination
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RESEARCH METHODOLOGY
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Data Collection Method
Both primary and secondary data were collected to meet the objective.
Source of Data
(a) Primary Data:
Primary data is the data which is collected for the first time. It is collected
from the source of origin
For primary data collection questionnaire was framed considering certain
factors like manpower planning, recruitment sources, selection method etc.
A copy of questionnaire is also attached in the Annexure. Questionnaire
method is being followed and was preferred over interview method because:-
• It is more economical
• This method can cover wider areas.
• This method is original and therefore very reliable.
• Respondents feel more comfortable while answering the
questions asked.
(b) Secondary Data:
The secondary data are those which are already in existence and which
have been collected for some other purpose.
The secondary data can be collected from the following sources:-
• Company Reports.
• Pamphlets.
• Magazines.
• Personnel Department.
• Hooks on communication
RESEARCH DESIGN
“A research design is the arrangement of condition for collection & analyzing
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of data in a manner that aims to combine relevance to the research purpose with
economy in procures."
“Research design is the framework or the blueprint or foundation for
conducting the research project”
“Research design is the conceptual structure within which research IS
conducted its constitutes. The blueprint for the collection, measurement and analysis
of data”
TYPES OF RESEARCH DESIGN
Exploratory Design
Descriptive Design
Experimental Design
(A). Exploratory Design:-
Exploratory research studies are also termed as formulative research studies. The
main purpose of such studies is that of formulating a problem for more precise
investigation.
(B) Descriptive Design:-
Descriptive research is concern with describing the characteristics of a population of
phenomenon.
(C) Experimental Design:-
Experimental research studies arc those where the researcher test the hypothesis of
casual relationships between variables.
I HAVE USED EXPERIMENTAL RESEARCH DESIGN IN THIS PROJECT
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INTRODUCTION
Performance appraisal has been one of the most debated management practices for
several decades. It has generated a wide variety of viewpoints. A more comprehensive
definition of Performance Appraisal is -
"Performance Appraisal is a formal structured system of measuring and
evaluating employees job related behaviors and outcomes to discover how and
why the employee is presently performing on a job and how the employee can
perform more effectively in the future so that the employee, organization and
society all benefit"
• Performance Appraisal consists of a systematic, face-to-face discussion of an
employee's work performance, training and development needs, future job goals
and job aspirations. It looks backwards, reviewing the employee's performance
during the period under review and forwards, helping the employee prepare and
set goals for the upcoming review period.
Performance Management is central to most Human Resource practices. An
organization tries to increase productivity and performance there is an increased
emphasis on appraisals. Over recent years there has also been a significant increase in
the number of organizations linking Performance Appraisal of employees and managers
with business plans and departmental goals.
• Managers evaluate things everyday. This may be done unconsciously.
Managers also evaluate employees often also unconsciously. They know whether
they are "good worker", reliable and conscientious. For a variety of reasons many
organizations ask managers to make conscious formal evaluations of employees
too. It may be as part of the organization's normal annual or biannual
Performance Appraisal System, which gives everyone a chance to clarify aims
and objectives, build on strengths and plan to strengthen weakness.
• In addition to these, there has been a trend through development in 'employment law'
for Performance Appraisal to be viewed as important documentation for legal
protection. This reason alone is sufficient to emphasize the importance of valid and
equitable appraisal management.
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• Performance appraisal leads to the identification of the training and development
needs of the employees. It also has close links with other important areas of human
resource management, in particular with selection, motivation, and succession
planning. Performance data provides relevant information required for validating
selection methods and also helps in assessing whether selection methods are bringing
high performers into the organization.
• Here the organization must not get trapped into the various pitfalls that come along
with administration of appraisal system. The question that arises here is - how to
avoid these pitfalls? A necessary condition for the effective management of
performance appraisal system in any organization is the need to clarify and
communicate to all concerned the objectives that the system intends to achieve.
• The culture of the organization clearly affects appraisal relationships. The only
possible way for organizations, to minimize the possible conflict among appraisal
objectives, is to emphasize on climate setting that will facilitate achieving the
objectives that an appraisal system intends to achieve.
• Thus what needs to be done is to encourage managerial styles that will lead to
openness and frankness in relationships as a condition for establishing an effective
performance appraisal system. The Indian companies need to realize that the
relationship between organization culture and performance appraisal system is a two
way process implying that they can successfully use their performance appraisal
system to bring about cultural change.
• The design of Employee Performance Appraisal and Development Plan thus formed
would assist in evaluating employee performance and identifying their potential and
guide in developing a plan to improve his/her performance as also to prepare him/her
for greater responsibilities in case of promotions and transfers. It should be filled
carefully, thoughtfully and objectively. Before an appraisal is made, the superior
should ensure that he/she and the employee are in agreement concerning
responsibilities, for result expected and what constitutes satisfactory performance.
The whole approach is a positive one; its purpose is improvement of individual's
ability and performance.
• The next fundamental question of importance is, to what extent, links should exist
between performance appraisal pay decisions. The general trend with regard to the
Indian organizations suggests atilt towards performance appraisal systems being
linked to individual rewards and pay. The advocates of this trend argue that when
performance appraisal system is linked to individual pay and rewards then all parties
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(appraisers, appraisees and reviewers) take performance appraisal more seriously.
Organizations are likely to develop performance -- oriented cultures, in which high
performers are seen to receive extra rewards, and lower performers receive lower
rewardsBut at the same time the issues that need to be looked into when pay and
performance appraisal are closely linked are:
• The pay issue may overshadow all the other purposes of performance appraisal;
there may be a tendency of employees to withhold negative information about
performance, leading to less than frank appraisal discussions;
• Employees may adapt their behaviors to focus only on receiving good ratings, rather
than genuinely improve their overall performance.
So the question arises what to do?
1. Firstly the organization must realize that pay related performance appraisal is likelyto be effective only where jobs are designed in such a way that allows individual
performance to be measured. Thus in situation characterized by high interaction
among jobs in achieving results, group-related pay systems may be more appropriate.
Thus before establishing company policies on the matter, it may be good idea to read
about alternative methods for rewarding good performance like gain sharing or tying
rewards to team performance or the company performance rather' than only to
individual performance,
2. Sometimes a combination of reward systems works much better and has fewer
nasty side effects than a single way of rewarding performance.
The design of Employee Performance Management and Development Plan thus formed
would assist in evaluating employee performance and identifying their potential and
guide in developing a plan to improve his/her performance as also to prepare him/her for
greater responsibilities in case of promotions and transfers. It should he filled carefully,
thoughtfully and objectively. Before an appraisal is made, the superior' should ensure that
he/she and the employee are in agreement concerning responsibilities, for result expected
and what constitutes satisfactory performance. The whole approach is a positive one its
purpose is improvement of individual's ability and performance.
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The normal system consists of the following parts:
PART A: SELF-APPRAISAL - To be filled in by the appraisee
PART B: PERFORMANCE APPRAISAL -- To be filled in by the Reporting
Authority/Superior
PART C: PERFORMANCE COUNSELING -- To be filled in by reporting Authority and
to be discussed with the appraisee along with person in charge.
PART D: SUMMARY OV ASSESSMENT- To be filled in by Review
Committee/Authority.
PART E: POTENTIAL APPRAISAL - To be filled in by the H0D / Unit head in
consultation with the reporting Authority.
Designing the Performance Management System :- Numerous have been devised to
measure the quantity & quality of employee’s job performance. Each of the methods
discussed could be effective for some purposes, for some organizations. None should be
dismissed or accepted as appropriate except as they relate to the particular needs of the
organization or of a particular type of employees. Broadly, all the approaches to appraisal
can be classified into:
Past-Oriented Methods:
This is the simplest & most popular technique for appraising employee performance. The
typical rating scale system consists of several numerical scales, each representing a job-
related performance criterion such as dependability, initiative, output, attendance,
attitude, co-operation, and the like. Each scale ranges from excellent to poor. The rater
checks the appropriate performance level on each criterion, and then computes the
employee’s total numerical score. Under this method, a checklist of the statement on the
traits of the employee & his or her job is prepared in two columns.
1. Forced Choice Method :--In this, the rater is given a series of statements
about an employee. These statements are arranged in blocks of two or more,
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2. Forced Distribution Method
The approach focuses on certain critical behaviors of an employee that make all
difference between effective & non-effective performance of a job. The superiors as &
when they occur record such incidents. The advantage of this method is that the
evaluation is based on actual job behavior
3. critical Incidents Method
The approach focuses on certain critical behaviors of an employee that make all
difference between effective & non-effective performance of a job. The superiors as &
when they occur record such incidents. The advantage of this method is that the
evaluation is based on actual job behavior.
4. Behaviorally Anchored Rating Scales
Behaviorally anchored scales, sometimes called behavioral expectation scales, are rating
scales whose scale points are determined by statements of effective & ineffective
behaviors.
5. Field Review Method
This is an appraisal by someone outside the assessee's own department, usually someone
from the corporate office or the HR department. The outsider reviews employee records
& holds interviews with the ratee& his or her superior. The
method is primarily used for making promotional decision at the managerial level field
reviews are also useful when comparable information is needed fromemployees in
different units or locations.
7. Performance Tests & Observations
With a limited number of jobs, employee assessment may be based upon test
knowledge or skills. The test may be of the paper-and-pencil variety or an actual
demonstration of skills. The test may be reliable & validated to be useful.
8. Essay Method
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In the essay method, the rater must describe the employee within a
number of categories such as:
1. The rater's overall impression of the employee's performance,
2. The promo ability of the employee
3. The jobs that the employee is now able or qualified to
perform4. The strengths & weaknesses of the employee
5. The training& the development assistance required by the employee.
9. Cost Accounting Method
A relationship is established between the cost included in keeping the employee &
the benefit of the organization derives from him or her. Performance of the
employee is then evaluated based on the established relationship between the cost& the benefit
10. Comparative Evaluation Approaches
These are a collection of different methods that compare one worker's performance
with that of his/her co-workers. Supervisors usually conduct comparative appraisals.
The usual comparative forms used in this kind of evaluation are the Ranking Method
& The Paired Comparison Method
Future oriented Performance Management systems :-
It is not enough if only the past performance is assessed. How an employee can perform
in the days to come is equally important. This can be assessed by focusing on employee
potential or setting future performance goals. The commonly used future oriented
techniques are MBO, psychological appraisals, assessment centers and the 360-degrec
appraisals.
1. Management by Objectives (MBO)
The M BO concept, as was conceived by Peter Drucker, reflects a management
philosophy, which values and utilizes employee contributions. Application of MHO in
the field of performance appraisal is a recent thinking. The following arc the four steps in
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which MBO works:
i) The first step is to establish the goals each subordinate is to attain.
ii) The second step involves setting the performance standard for the subordinates in
a previously arranged time period.
iii) In the third step, the actual level of goal attainment is compared with the goals
agreed upon.
iv) The final step involves establishing new goals and possibly new strategies for
goals not previously attained.
v) The process is then repeated.
MBO is criticized on the following grounds:
i) It is not applicable to all jobs in all organizations.
ii) It is most useful with managerial personnel and employees who have a fairly wide
range of flexibility and self control in their jobs.
iii) Employees may be less likely to establish challenging goals.
2. Psychological Appraisals
When psychologists are used for' evaluations, they assess an individual's future potential
and not the past performance. The appraisal normally consists of in-depth interviews,
psychological tests, discussions with supervisors and a review of other evaluations.
The psychologist then writes an evaluation of the employee's intellectual, emotional,
motivational and other related characteristics that suggest individual potential and may
predict future performance. The evaluation by the psychologist may be for a specific job
opening for which the person is being considered, or it may be a global assessment of his
/ her future potential.
This method has the following problems associated with its application:
i) It is slow and costly.
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ii) Employees may object.
3. Assessment centers
An assessment centre is a central location where mangers may come together to have
their participation in job related exercises evaluated by trained observers. The principal
idea is to evaluate managers over a period of time by observing their behavior across a
series of select exercises or work samples.
The characteristics assessed in a typical assessment centre includes assertiveness,
persuasive ability, communicating ability, planning and organizational ability, self
confidence, resistance to stress, energy level, decision making, sensitivity to the feelings
of others, administrative ability, Creativity and mental alertness. A well conducted
assessment centre can and does achieve better forecasts of future performance and progress than other methods of appraisal. Also, reliability, content validity, and
predictive validity are said to be high in the assessment centers.
The problem with assessment centers is that they are not cost effective in nature and are
thus, suitable mainly for the large organizations.
4. 360-Degree feedback
"The systematic collection and feedback of performance data on an individual or group,
derived from a number of the stakeholders in their performance;"
To Explain:
The data collection is systematic, i.e. done in some systematic way via questionnaires or
inter-views. This formalizes people judgments coming from the natural interactions they
have with each other. There is both a collection and a feedback process data is gathered
and then fed back to the individual participant in a clear way designed to promote
understanding, acceptance and ultimately changed behavior. The performance of either
individual or group can be measured. The process has recently been applied to groups or
teams but can be an effective way of measuring interactions with in a team or team
outputs and quality as perceived by the customer. The source of data is called the
stakeholders in the participant's performance. Stakeholder’s are people who are both
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affected by the individuals or group's performance and deal with them closely enough to
be able to answer the specific questions about the way they interact with the stakeholders.
A Final Observation:
The word 'performances twice in the definition. However, we should be quite clear on the
fact that it refers to the quality of a person's interactive processes or their behavior, rather
than the results they produce.
The 360 - degree appraisal, a relatively new model for reviewing employees'
performance, incorporates appraisals from supervisors, co-workers, subordinates and
even external customers. 360-degree performance appraisal strengthens the relationship
between employee and employer. The advantage of 360-degree systems over traditional
systems is that they accumulate more information about employees' performance and
development areas; this information is used to give the most beneficial feedback
possible.
Increased feedback and multi-source feedback results in a change in management
behavior and in an increase in performance. Theoretically, anonymous feedback is more
open and honest then one - on -- one feedback. The assumption is that honest feedback
changes management behavior faster than restricted feedback.
It is also assumed that employees (and customers) that are listened to and involved will
produce more and have higher satisfaction and retention.
A basic assumption is that employees have knowledge of management behaviors that can
be provided to management. A further assumption is that the "anonymity" provided in
360 process is credible and results in honest feedback.
The 360-degree technique is an appraisal technique that provides a broader perspective
about an employee's performance. In addition, the technique facilitates greater self-
development of the employees. For one's development, multi-source feedback is highly
useful. It enables an employee to compare his/her perceptions about self with perception
of others.
It is a systematic collection of performance data on an individual or group; derived from
a number of stakeholders - superiors, team members, customers, peers and self. By
design, the 360-degree appraisal is effective in identifying and measuring interpersonal
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skills, customer satisfaction, and team building skills.
.
The Appraisal Interview
Whatever method of appraisal used by an organization, it is crucial to allow for
'employee feedback'. An interview between the manager and the employee is the main
way of achieving this.
The interview provides the opportunity, to discuss an employees’ performance and
explore areas of possible improvements and growth. It also provides an opportunity to
identify attitudes and feelings more thoroughly and thus improve communication.
Fundamental to the success of the appraisal interview is the relationship between the two
participants in the process.
The interview may have any of the following purposes
Record / summary of performance
Feedback from employee
Feedback from manager
Career development
Suitability for promotion/ transfer
counseling
Motivation
Foster the working relationship
The format of the interview will be determined in large by
The purpose of interview
Type of appraisal method used
Organization of the interview form (formal record)
The interview is perhaps the most important part of the entire appraisal program.
Unfortunately, interviewers can become overburdened by attempting to discuss too
much.
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The interviewer should observe the following points: -
Initially, emphasize strengths on which employee can build rather than weakness
to overcome.
Avoid suggestions about personal traits to change instead suggest more
acceptable ways of performing.
Concentrate on opportunities for growth that exist within the framework of the
employees' present position.
Limit plans for growth to a few important items that can be accomplished within
a reasonable period of time
Types of Appraisal Interview
Managers should never assume that only one type of appraisal interview is appropriate
for every review session. Rather, they should he able to use one or more of the interview
types depending on the topic being discussed or the behavior being appraised. Feedback
is necessary to effect improvement in performance, especially when it is inadequate.
Specifically, performance interview has three goals:
To change behavior of employees whose performance docs not meet
organizational requirements or their own personal goals,
To maintain the behavior of employees who perform III an acceptable
To recognize superior performance behaviors so that the}' will be continued.
Three distinct types of interview are commonly used
Tell and sell
Tell and listen
Problem solving and mixed.
1. Tell and sell
• It is also called as directive interview; the interviewer lets assesses know how well
they arc doing and sells them on merits of setting specific goals for improvement, if
needed.
• Has little provision for employee participation
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• Generally consists of three stages
Manager lets employee know how the latter is doing.
The employee's acceptance of this evaluation is sought.
The employee agrees to follow a pre-determined plan for improved job
performance.
• This method does not require much of anyone's time but is of little use if the
improved behavior does not eventuate.
• There is no opportunity for employee participation and over time, it is likely that
employees will only perform to conform to their manager's wishes.
• The role of the supervisor / manager is one of 'judge' and 'jury'.
2. Tell and listen
• Tell and listen interview provides the subordinates with chances to participate and
establish a dialogue with their superiors. Its purpose is to communicate the rater's
perceptions.
• It is the most commonly used interview technique.
• As with "Tell and Sell", the manager lets the employee know how he or she is doing.
Communicate strong and weak points of an employee's job performance.
• The employee has a chance to respond to the assessment and present his/ her views.
Employee’s feelings of the appraisal are thoroughly explored.
• BOTH views arc then considered together, a conclusion reached and a plan for"
future performance is developed.
• This is much more flexible approach, however, the type of reaction provoked
may strongly affect the success of the interview
For example, if the manager's remarks arc perceived as unfair.
(Or critical) by the employee, defense mechanism and face saving,
rather than constructive responses might still be the outcome.
• The "Tell and Listen" method assumes that the opportunity to release frustrated
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feelings will help reduce or remove them.
3. Problem solving and mixed
• In the problem solving or participative interview, an active and open dialogue is
established between the superior and the subordinate. Not only are perceptions
shared, but also solutions to problems arc presented, discussed, and sought.
Mixed interview is a combination of tell and sell and problem solving interviews.• Differs markedly from the methods above.
Although recommended by some, since the objective of appraisal is normally
to stimulate growth and development in the employee.
It is used more widely in 'counseling' and is an unstructured approach.
• The skills an' consistent with the non-directive procedures of the "Tell and
Listen" method in that listening, accepting and responding to feelings arc
essential.
However, it goes beyond an interest in the employee's feelings.
It seeks to stimulate growth and development in the employee by discussing
problems, needs innovations, satisfactions and dissatisfactions encountered since the
last appraisal
• A work - related situation IS presented and both the manager and the employee
discuss a solution.
• The manager assumes the role of a 'Helper' or 'Facilitator' rather than a judge and
emphasis is on the work situation, not the business of the individual.
• Can lead to a wide range of changes in work practices, patterns of supervision and
individual attitudes.
• Managers need to have the following characteristics
Be well prepared
Show trust
Be active listeners
Discuss frankly any areas where performance IS not up to standard, backing
this with specific examples.
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Conversely good performance should be praised, again using specific
examples.
• It is also important for the employee not to leave the interview with any issues
unsolved. Whatever is the approach followed, the emphasis in the interview
should be on counseling and development and not on criticism, witch- hunting and
buck passing. Because of the significance of appraisal interview, every effort must
be made to make it effective. Guidelines given will help make the interview
successful.
Guidelines for Effective Appraisal Interview:
• Select a good time
• Minimize interruptions
• Welcome, set at ease
• Start with something positive
• Ask open-ended questions to encourage discussion
• Listen
• Manage eye contact and body language
• Be specific
• Rate behavior, not personally
• Layout development plan
• Encourages subordinate participation
• Set mutually agreeable goals for improvement
• End in a positive, encouraging note
Pitfalls of Performance Management Programs :- Obstacles to the
success of formal Performance Management programs should be familiar
to most managers, either from painful personal experience or from the
growing body of critical literature. Here are the most troublesome and
frequently cited drawbacks.
• Performance Management programs demand too much from supervisors.
Formal performance appraisal obviously requires at least periodic supervisor
observation of subordinates' performance. However, the typical first - line
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supervisor can hardly know, in a way, just what each of 20, 30, or more
subordinates are doing.
• Standards and ratings tend to vary widely and often, unfairly. Some rates are
tough, while some are lenient. Some departments have highly competent people;
others have less competent people. Consequently, employees subject to less
competition or lenient ratings can receive higher appraisals than equally
competent or superior associates.
• Personal values and bias can replace organizational standards. An appraiser may
not lack standards, but the standards he uses are sometimes wrong ones. For
example: - unfairly low ratings may be given to valued subordinates so they will
not be promoted out of the rater's department. More often, however, outright bias
dictates favored treatment for some employees.
• Because of lack of communication, employees may not know how they are rated.
The standards by which employees think they are being judged are sometimesdifferent from those their supervisors actually use. No performance appraisal system
can be very effective for management decisions, organization development, or any
other purpose until the people being appraised know what is expected of them and by
what criteria they are being judged.
• Management techniques tend to be used as performance panaceas. If a worker lacks
the ability or has not been given the necessary training for his job, it is neither
reasonable to try to stimulate adequate performance through performance
management, nor fair to base salary, dismissal, or other negative decisions on such an
appraisal.
• In many cases, the validity of ratings is reduced by supervisory resistance to making
the ratings. Rather than confront their less effective subordinates with negative
ratings, negative feedback in appraisal interviews, and below average salary
increases, supervisors often take the more comfortable way out and give average or
above average ratings to inferior performers.
• Performance Management ratings can boomerang when communicated to
employees. Negative feedback (i.e. criticism) not only fails to motivate the typical
employee, but also can cause him to perform worse. Only those employees who have
a high degree of self-esteem appear to be stimulated by criticism to improve their
performance.
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INTRODUCTION
Reliance Group
The Reliance Group, founded by Dhirubhai H. Ambani(1932-2002), is India's largest private sector enterprise,
with businesses in the energy and materials value chain.Group's annual revenues are in excess of US$ 58 billion.The flagship company, Reliance Industries Limited, is aFortune Global 500 company and is the largest privatesector company in India.
Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integratedalong the materials and energy value chain.
The Group's activities span exploration and production of oil and gas, petroleum refiningand marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals),textiles, retail, infotel and special economic zones.
Reliance enjoys global leadership in its businesses, being the largest polyester yarn andfibre producer in the world and among the top five to ten producers in the world in major petrochemical products.
Major Group Companies are Reliance Industries Limited, including its subsidiariesand Reliance Industrial Infrastructure Limited.
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Founder Chairman
"Growth has no limit at Reliance. I keep revising my vision.Only when you can dream it, you can do it."
Dhirubhai H. Ambani Founder Chairman Reliance GroupDecember 28, 1932 - July 6, 2002
Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a globalleader in the materials and energy value chain businesses.
He is credited to have brought about the equity cult in India in the late seventies and isregarded as an icon for enterprise in India. He epitomized the spirit 'dare to dream and learnto excel'.
The Reliance Group is a living testimony to his indomitable will, single-minded dedicationand an unrelenting commitment to his goals.
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Corporate Governance
Growth through Governance
Reliance is in the forefront of implementation of Corporate Governance
best practices
Corporate Governance at Reliance is based on the following main principles:
• Constitution of a Board of Directors of appropriate composition, size, variedexpertise and commitment to discharge its responsibilities and duties.
• Ensuring timely flow of information to the Board and its Committees to enablethem to discharge their functions effectively.
• Independent verification and safeguarding integrity of the Company’s financialreporting.
• A sound system of risk management and internal control.
• Timely and balanced disclosure of all material information concerning theCompany to all stakeholders.
• Transparency and accountability.
• Compliance with all the applicable rules and regulations.
• Fair and equitable treatment of all its stakeholders including employees,customers, shareholders and investors.
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Commitments
Growth through Commitments
We care about
QualityResearch & DevelopmentHealth, Safety & EnvironmentHuman Resource DevelopmentEnergy Conservation
Corporate Citizenship
Reliance believes that any business conduct can be ethical only when it rests on the ninecore values of Honesty, Integrity, Respect, Fairness, Purposefulness, Trust,Responsibility, Citizenship and Caring.
The essence of these commitments is that each employee conducts the company's business with integrity, in compliance with applicable laws, and in a manner thatexcludes considerations of personal advantage.
We do not lose sight of these values under any circumstances, regardless of the goals we
have to achieve. To us, the means are as important as the ends.
For Reliance…
Growth is care for good health
Reliance's occupational health centers carry out pre-employment and periodic medicalcheckups as well as other routine preventive services. Specialised tests like biologicalmonitoring, health risk assessment studies and audits for exposure to various materialsare also performed. Health education and awareness form an integral part of the healthcare programme at Reliance
Growth is care for safety
We believe that the safety of each employee is the responsibility of the individual as well as of the whole community of employees
Growth is care for the environment
Reliance believes that a clean environment in and around the workplace fosters healthand prosperity for the individual, the group and the larger community to which they
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belong. Environmental protection is an integral part of the planning, design, construction,operation and maintenance of all our projects.
Growth is betting on our people
Reliance builds with care a workplace that proactively fosters professional as well as personal growth. There is freedom to explore and learn; and there are opportunities thatinspire initiative and intrinsic motivation. We believe that people must dream to achieve,that these dreams will drive the company's excellence in all its businesses. Reliancethinks, behaves, lives and thrives with a global mindset, encouraging every employee toreach his / her full potential by availing opportunities that arise across the group.
Growth is thinking beyond business
As corporate citizens, we invest in social infrastructure, believing strongly that our business strength fuels our social contributions. To this end, Reliance encourages, fundsand develops numerous education, health, human capital and infrastructure initiatives.These initiatives are undertaken through partnerships with non-governmentalorganizations, corporates and trusts.
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Product and Brands
Products & Brands
The Company expanded into textiles in 1975. Since its initial public offering in 1977, theCompany has expanded rapidly and integrated backwards into other industry sectors,most notably the production of petrochemicals and the refining of crude oil.
The Company from time to time seeks to further diversify into other industries. TheCompany now has operations that span from the exploration and production of oil andgas to the manufacture of petroleum products, polyester products, polyester
intermediates, plastics, polymer intermediates, chemicals and synthetic textiles andfabrics.
The Company's major products and brands, from oil and gas to textiles are tightlyintegrated and benefit from synergies across the Company. Central to the Company'soperations is its vertical backward integration strategy; raw materials such as PTA, MEG,ethylene, propylene and normal paraffin that were previously imported at a higher costand subject to import duties are now sourced from within the Company. This has had a positive effect on the Company's operating margins and interest costs and decreased theCompany's exposure to the cyclicality of markets and raw material prices. The Company believes that this strategy is also important in maintaining a domestic market leadership
position in its major product lines and in providing a competitive advantage.
The Company's operations can be classified into four segments namely:
• Petroleum Refining and Marketing business• Petrochemicals business• Oil and Gas Exploration & Production business• Others
The Company has the largest refining capacity at any single location.
The Company is:
• Largest producer of Polyester Fibre and Yarn• 5th largest producer of Paraxylene (PX)• 5th largest producer of Polypropylene (PP)• 8th largest producer of Purified Terephthalic Acid (PTA) and Mono Ethylene
Glycol (MEG)
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Product Flow chart
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1. I am satisfied and totally concerned with the performance appraisal policies laid
by the top management.
5% 12%
7%
41%
35%
STRONGLY DISAGREE
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE
STRONGLY AGREE
Interpretation: About 76% of the respondents showed their satisfaction about the way
the policies have been laid by the perfomace
It is a good sign for an organization like hpl where number of people working is very
large.
The case of worry for the company is that around 5% of the respondents have
strongly disagreed and 7% neither agreed nor disagreed which indicates that these
respondents are either very dissatisfied or not properly concerned about the policies
2. Communications with the top management are canalized properly with the rest
of the organization.
15%
24%
2%44%
15%
STRONGLY
DISAGREE
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE
STRONGLY AGREE
Interpretation: The response says that about 60% of the people agree with the
channels of communication as laid by the hpl
Where as nearly 40% have disagreed which highlights employees are dissatisfied due
to hpl being over staff.
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3. I believe that hpl is professionally managed company.
4% 4%
7%
45%
40%
STRONGLY
DISAGREE
DISAGREE
NEITHER AGREE
NOR DISAGREE
AGREE
STRONGLY AGREE
Interpretation: 85% of the respondents have again respected the organisation and
taking its side have responded positively to it.
It clearly indicates that to a very good extent hpl employees show due respect to the
organisations.
4. I am satisfied with the way the performance appraisal is conducted.
5%10%
2%
58%
25%
STRONGLY
DISAGREEDISAGREE
NEITHER AGREE
NOR DISAGREE
AGREE
STRONGLY AGREE
Interpretation: Above 80% of the respondents have assured that HR policies have
been directed towards employee satisfaction.
A proper care of employees’ benefits has been taken by the department.
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5. Suggestion scheme maintained by the hpl are encouraging.
4% 10%
2%
64%
20%
STRONGLY
DISAGREE
DISAGREE
NEITHER AGREE
NOR DISAGREE
AGREE
STRONGLY AGREE
Interpretation: 84% of the responded have proved that hpl has been well taking care
of Welfare for employees.
The study about the perfomace appraisal relating to facilities provided has been
visibly proved through the data represented.
6. Hpl providing a good perfomace apprsial
5% 15%
3%
42%
35%
STRONGLY
DISAGREE
DISAGREE
NEITHER AGREE
NOR DISAGREE
AGREE
STRONGLY AGREE
Interpretation: The data represents that employees have fair good response of
perfoamce 77% positive response against the 20% dissatisfied ones is enough to
prove the above fact.
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7. The perfoamce appraisal policy of both internally and externally has been
properly controlled.
14%
39%
8%
21%
18%
STRONGLY
DISAGREE
DISAGREE
NEITHER AGREE
NOR DISAGREE
AGREE
STRONGLY AGREE
Interpretation: The response suggests the organisation to take care about its
perfoamce appraisal policy.
Where below 40% respondents felt that it does works well but overall there were 14%
who strongly disagreed and other 39% felt same to a good extent and 8% were confused
enough
8. Company has always takes corrective disciplinary action towards every
misconduct held by
12%
30%
2%39%
17%
STRONGLYDISAGREE
DISAGREE
NEITHER AGREE
NOR DISAGREE
AGREE
STRONGLY AGREE
Interpretation: The response towards the disciplinary action towards misconduct has
been in the 50:50 Ratio.
The worry for the organisation is that large numbers of respondent’s i.e.44% do not
believe in the discipline procedure of the organisation as maintained till now.
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The possible reason perceived does the large no of employees in hpl as well as large
no of workers constitute the workforce.
9. Overall, I am happier at my company than I was a year ago.
1% 20%
5%
50%
24%
STRONGLY
DISAGREE
DISAGREE
NEITHER AGREE
NOR DISAGREE
AGREE
STRONGLY AGREE
Interpretation: For any company with around such great perfomace apprsail strength
having nearly 3/4th of the respondents assuring faith in the management system of the
company is a god sign for a further bright future of such organisation.
The interpretation of the data represented from the research conducted can be
analysed as: -
1. The company strongly believes in employees welfare and taking sheer
care of their rights and satisfaction in the workplace and the work as suchgiven to them.
2. Company’s appraisal policy, autonomy level given to the employees,
welfare policy, correspondingly gives job satisfaction to the employees
3. The respondents have shown due respect to company’s image and have
felt the presence of its values, believed in its mission to be strongest and the
most respected engineering company of the country and accepted it as a
professionally managed company with a fair good response that makes everyone believe in it.
Overall, hpl can be interpreted having Sound perfoamce appraisal and a satisfied staff
ensuring enough support to the organisation to be one of the most successful engineering
company of the nation.
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Limitations
The following are the limitations faced by me during the course of the study the sample
consisted only of employees in the day shift. Employees of the nightshift were not
considered for the purpose of study. There is no concrete basis to prove the response
given is a true measure of the opinion of all the employees as a whole. Convenient
sampling was used as the mode of conducting the research. The questionnaire contained
mostly multiple-choice questions; therefore many respondents may not have given a
proper thought before answering the questions. The response of the respondents may not
be accurate thinking that the\management might misuse the data. Almost all of the
questionnaires had the open-ended question no. 11, leftunanswered.Sensitive company
information cannot be displayed in the project report.Most respondents might be
influenced by their peers in answering the questions.Due to the fact that most of the
respondents were young, the questions might nothave been answered with due sincerity.
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Conclusions
The following are the suggestions and conclusions derived from this particularresearch
study
Objectivity
One manager's idea of "self-starting ability" can be quite different thananother's idea. The
question then arises as to how does one objectivelyevaluate "creativity ? If greater
amount of objectivity can be infused into theAppraisal system, it can help to bring more
transparency.Effective CommunicationOne function of performance appraisals is to help
employees develop so theycan contribute more effectively. In order for the employees to
develop andlearn they need to know what they need to change, where (specifically)
theyhave fallen short, and what they need to do. If a manager assigns a 1(unsatisfactory)
on a scale of 5, it does not convey much information to anemployee. It just says the
manager is dissatisfied with something. In order tomake it meaningful and promote
growth, far more information must be addedto the appraisal process and the related
information should be transparentlyshared with the employee.Fairness
Most employees resist being classified at the low end of the scale. Employeesargue,
claiming that personal bias was involved in the ratings.Managerial EfficiencyThe
implementation of a Performance Appraisal System rests on the shouldersof the manager
and he must ensure that it is done properly. A good managercan make an average
appraisal system work and vice-versa.
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RECOMMEDATIONS
The suggestions after the survey are:
The Performance Appraisal should be done on half-yearly basis rather than on
yearly basis.
After the performance Appraisal, the supervisor should personally discuss the
strength and weakness of the managers.
Everyone should feel free to express their opinion openly without any
hesitation.
The employee in the organization should be made aware of the latest method of
the Performance Appraisal like 3600 Appraisal.
Proper training should be provided to the managers after discussing the
weakness of the manager.
All employees should be made of the Performance Appraisal system
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HRBOOKS
• C.B Gupta, 1996, Principles and Practice of Management, National,
New Delhi.
• Robbins, 2002, Human Resource Management, Himalaya Publication House,
Gurgaon.
• Sharma, M.C.1992, Question Bank in Business Studies, Sultan Chand & Sons,
New Delhi.
• Mishra M.M, Human Resource Management, 2006-07, Anurag Jain Publication,
New Delhi.
• Chandan T.S.2001, Organization Behavior, Vikas Publication, New Delhi.
WEBSITES
• www.hrworld.com
•
www.hr.com• www.google.com
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Instructions
The questionnaire has been designed to assure full anonymity.
Please don’t write your name anywhere in the questionnaire
Respond to all statements.
Please tick the box, which is most suitable to your belief and experience.
There is no right and wrong answer the study will have its full benefit only if your
responses are straight forward and your own.
Your responses to each of these statements will be as to whether you.
SD -If you are ‘STRONGLY DISAGREE’ with the statement
D -If you ‘DISAGREE’ with the statement
NAND -If you ‘NEITHER AGREE NOR DISAGREE’
A -If you ‘AGREE’ with the statement
SA -If you ‘STRONGLY AGREE’ with the statement
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QUESTIONS
1. I am satisfied with the perfomace apprsail policies laid by the top management.
2. Communications with the top management are channalised properly
with the rest of the organization.
5. I believe that hpl is professionally managed company.
6. I am satisfied with the way the performance appraisal is conducted.
7. hpl providing a good perfomace appraisal policy
8. The prfoamce apprsial policy of both internally and externally has been properly
controlled.
9. Suggestion scheme maintained by the hpl are encouraging.
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10.Overall, I am happier at my company than I was a year ago.
As an employee I would like to do the following to make hpl a world-class organization.
NB: Please use additional sheets if needed and staple them to your questionnaire.
PLEASE NOTE:
SD= Strongly Disagree; D= Disagree; A=Agree; SA=Strongly Agree;
NAND=Neither Agree Nor Disagree
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