A Project Report on Performance Appraisal and Training in Learlita Ltd

A PROJECT REPORT ON PERFORMANCE APPRAISAL AND

TRAINING IN LEARLITA ENGINEERING PRIVATE

LIMITED.

SUBMITTED BY

SHWETA .A. PANWALKAR

TYBMS (SEM V)

2011-2012

PROJECT GUIDE

MRS.SINDHU PRABHU

VIDYA PRASARAK MANDAL’S

K.G.JOSHI COLLEGE OF ARTS & N. G. BEDEKAR COLLEGE

OF COMMERCE

CHENDANI BUNDER ROAD THANE 400601

(BACHELOR OF MANAGEMENT STUDIES)

UNIVERSITY OF MUMBAI

2011-2012

A PROJECT ON PERFORMANCE APPRAISAL IN LEARLITA

ENGINEERING PRIVATE LIMITED.

SUBMITED TO


(2011-2012)

SUBMITTED BY

SHWETA .A. PANWALKAR

ROLL NO. 113

TYBMS (V SEM)

VIDYA PRASARAK MANDAL’S K. G. JOSHI BEDEKAR COLLEGE

OF ARTS & N. G. BEDEKAR COLLEGE OF COMMERCE

CHENDANI BUNDER ROAD THANE 400601

(BACHELOR OF MANAGEMENT STUDIES)


2011-2012

VIDYA PRASARAK MANDAL’S K.G. JOSHI COLLEGE OF

ARTS &

N. G. BEDEKAR COLLEGE OF COMMERCE CHENDANI

BUNDER ROAD,

THANE 400601

DECLARATION

I SHWETA .A.PANWALKAR STUDYING IN THIRD YEAR

BACHELOR OF MANAGEMENT STUDIES (TYBMS) HERE

BY DECLARED THAT ALL THE GIVEN INFORMATION IN

THE PROJECT IS ORIGINAL TRUE & TO THE BEST OF MY

KNOWLEDGE.

(SHWETA. A. PANWALKAR)

ACKNOWLEDGEMENT

IT GIVES ME GREAT PLE ASURE TO PREPARE THIS

PROJECT ON PERFORMANCE APPRAISAL & TRAINING IN

LEARLITA ENGINEERING PVT LTD. AND PRESENT IT TO

THE UNIVERSITY OF MUMBAI, UNDER THE GUIDANCE

OF MRS. SINDHU PRABHU (PROF OF HUMAN RESOURCE

MANAGEMENT). I WOULD LIKE TO THANK HER FOR HER

CONSTANT SUPPORT.

I TAKE THIS OPPORTUNITY TO THANK THE

MANAGEMENT OF LEARLITA ENGINEERING PVT LTD

FOR ALLOWING ME TO UNDERTAKE THE PROJECT IN

THIS COMPANY. THIS PROJECT WOULD NOT HAVE COME

TO REALITY WITHOUT THE VALUABLE GUIDANCE OF

ANTONY SEQUEIRA HR EXECUTIVE OF LEARITA

ENGINEERING PVT LTD.I WOULD ALSO LIKE TO THANK

ALL THOSE WHO HAVE CO-OPERATED BY GIVING THEIR

PRECIOUS TIME DURING THE SURVEY.

THANK YOU,

(SHWETA.A.PANWALKAR)

EXECUTIVE SUMMARY

ONCE THE EMPLYOEES HAVE BEEN SELECTED, TRAINED

AND MOTIVATED THEY ARE THEN APPRAISED FOR

THEIR PERFORMANCE. PERFORMANCE APPRAISAL HAS

BEEN CONSIDERED AS A MOST SIGNIFICANT AND

INSEPARABLE TOOL FOR AN ORGANISATION.THIS IS

ALL BECAUSE THE ORGANISATION CONSISTS OF

HUMAN BEING AND ANALYSIS OF THEIR PERFORMANCE

IS VERY ESSENTAIL BECAUSE THEY ARE THE LIFE

BLOOD OF ANY ORGANISATION. IT IS THEIR

PERFORMANCE, WHICH HELPS IN THE DEVELOPMENT

AND PROSPERITY OF THE ORGANISATION

PERFORMANCE APPRAISAL IS USED TO:-

UNDERSTAND THE DIFFICULTIES OF THEIR EMPLOYEES

AND TRY TO REMOVE THESE DIFFICULTIES.

KNOW THE STRENGTHS AND WEAKNESSES OF THEIR

EMPLOYEES AND HELP REALIZE THESE.

HELP THE EMPLOYEES TO ACQUIRE NEW CAPABILITIES.

PLAN EFFECTIVE REALIZATION OF TALENTS OF

MANAGER.

GENERALLY HR MANAGER SCHEDULES INDIVIDUAL

MEETINGS WITH EACH EMPLYOEES TO DISCUSS THE

EMPLOYEES PERFORMANCE, COMMUNICATE THE

PERFORMANCE AREAS THAT NEED ATTENTION AND

JOINTLY ESTABLISHED AREAS TO BE WORKED ON OR

GOALS TO ACHIEVED BY THE NEXT SCHEDULED

DISCUSSION.SUCH PERFORMANCE APPRAISAL

INTERVIEWS MAY BE SCHEDULED EVERY THREE

MONTHS OR ONCE OR TWICE A YEAR.GOALS AND

OBJECTIVES THAT ARE AGREED UPON IN EACH

MEETING. THE VARIOUS METHODS USED TO RANK THE

EMPLOYEES ARE BROADLY CLASSIFIED AS

TRADITIONAL AND MODERN METHODS.THESE

METHODS HAVE THEIR OWN IMPORTANCE AS PER THE

APPRAISAL METHODS FOR APPRAISAL ARE SELECTED

ACCORDING TO THE JOB OF THE EMPLOYEES. THERE

ARE CERTAIN EXPECTATIONS FROM APPRAISERS WHILE

CONDUCTING THE APPRAISAL.THE APPRAISALS THUS

CONDUCTED SHOULD BE ETHICAL, FAIR ENOUGH &

SHOULD SUIT THE ORGANISATION CULTURE.THESE ARE

VARIOUS TECHNIQUES TO BE USED WHILE

CONDUCTING THE APPRAISAL.

THE PRACTICAL EXAMPLE OF CONDUCTING

PERFORMANCE APPRAISAL STUDIED IN THIS PROJECT IS

THE APPRAISAL CONDUCTED IN LEARITA LTD. A BRIEF

STUDY OF THE STRATEGIES USED BY THE COMPANY

FOR APPRAISING THEIR EMPLOYEES IS GIVEN IN THIS

PROJECT. THE COMPANY DIVIDES THE EMPLOYEES INTO

THREE GROUPS ACCORDINGLY VARIOUS METHODS ARE

IMPLEMENTED TO EVALUATE THEIR

PERFORMANCE.THE ANALYSES ARE DONE IN

DIFFERENT WAYS FOR DIFFERENT LEVELS OF

EMPLOYEES.

WHILE CONDUCTING THE APPRAISALS THERE ARE

MANY DIFFICULTIES & MISTAKES COMITTED ON THE

PART OF THE APPRAISALS AS WELL AS THE APPRAISEES

REASONS FOR THE DIFFICULTIES COULD BE DUE TO THE

FLAWS IN THE METHODS, THE APPRAISERS MISTAKES

ETC. SOLUTIONS CAN BE ARRIVED AT BY DOING A DEEP

STUDY INTO THIS SUBJECT A FEW SOLUTIONS ARE

SUGGESTED BUT THEY NEED TO BE ACTUALLY

IMPLEMENTED IN ORDER TO MAKE THIS ACTIVITY A

PERFECT TOOL FOR EVALUATING THE JOBS OF THE

EMPLOYEES.

INDEX

Sr.no. CHAPTER NAME PG.NO.

1] HUMAN RESOURCE MANAGEMENT

1.1 5 M’S OF BUSINESS WORLD

1.2 HUMAN RESOURCE MANAGEMENT

1.3 HUMAN RESOURCE DEVELOPMENT

1.4 OBJECTIVES & FUNCTIONS OF HUMAN RESOUCES DEPARTMENT

2] TRAINING AND DEVELOPMENT

2.1 NEED FOR TRAINING2.2 STEPS IN TRAINING

PROGRAMME2.3 METHODS/TECHNIQUES

OF TRAINING

3] PERFORMANCE APPRAISAL

3.1 OBJECTIVES OF PERFORMANCE APPRAISAL

3.2 PROCESS OF PERFORMANCE APPRAISAL

3.3 ISSUES IN APPRAISAL SYSTEMS

3.4 ESSENTIALS OF AN EFFECTIVE PERFORMANCE SYSTEMS

3.5 METHODS/APPROCHES OF PERFORMANCE APPRAISAL

3.6 PROBLEMS OF APPRAISAL

3.7 WHY APPRAISAL TECHNIQUES PROVE FAILURE

3.8 HOW APPRAISAL MAY BE MADE SUCCESSFUL

3.9 ETHICS OF APPRAISAL

4] LEARLITA PRIVATE ENGINEERING LIMITED

4.1 COMPANY INFORMATION

4.2 PERFORMANCE APPRAISAL IN LEARLITA LTD

4.3 METHODS USED 4.4 PERSON INTERVIEWED

5] CONCLUSION 5.1 COMMON MISTAKES &

SOLUTIONS5.2 CONCLUSION

CHAPTER – 1

1. HUMAN RESOURCES

Human resources is a term used to describe the individuals who

make up the workforce of an organization, although it is also

applied in labour economics to, for example, business sectors or

even whole nations. Human resources is also the name of the

function within an organization charged with the overall

responsibility for implementing strategies and policies relating to

the management of individuals (i.e. the human resources). This

function title is often abbreviated to the initials "HR".

1.1 5 M’S OF BUSINESS WORLD

Managing business organizations has always been a challenge to

man since it became scientific. The earliest known accounts of

business management in man's existence tended to be crude,

brutish and short. Anything, and anyone, found to be an

impediment to any growth in entrepreneurship was either pilloried

or guillotined off for 'progress' to be made. Then came the

industrial revolution. Welcome to machines and goodbye to

servitude. Slavery became abolished as people had causes to be

more 'humane' in business. Man's overuse had become juxtaposed

with gears and belts of machines. Welcome to mass production.

Things became manufactured at the touch of a button. Materials

were optimally utilised. Time became shorter and physical exertion

of force required to create utility became a thing of the past.

Since man became victorious in the industrial revolution, every

business has been using these five M's: man, materials, machines,

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

minutes and money; to operate with, or without, success. To create

any venture without any one of these M's is simply embarking on a

journey to Erehwon. It is sheer entrepreneurial harakiri to even

attempt to cut corners. No one should even

Contemplate doing that. Failure awaits such business. It will also

be disastrous for organizations not to properly and effectively

organise the M's for business success. That, in itself is a different

kettle of fish. None of the M's is useless no matter the perspective it

is viewed from. A meta-analysis of organizations that have

survived over time showed that careless regard to any of the five

resulted in economic fiascos, with some even affecting global

business. When man took time off work to fight two major wars,

there was economic downturn as precious time was expended to

right perceived wrongs.

MAN

Man, the first of the five M's is the most important. The right

personnel for the right position is a sure bet for organizational

effectiveness and efficiency. No two ways about that. Thus,

lateness and absenteeism, unsafe acts, alcoholism, poor training,

incompetence are just some of the attributes of man at work that

could upturn the apple cart of business ventures. Human resources

determine the workings of the other four basic business resources.

People make sure materials, machines, minutes and money are

utilised in a productive manner to achieve goals or aims and

objectives of organizations and enterprises. Poor employment

practices are inimical to the sustenance of such ventures. With the

right man in the right job, a large portion of effective business

management will have been achieved. No doubts about that.

MATERIALS

Without materials, human resource is made redundant. Thus every

right thinking and right planning organization knows that materials

needed for any business or service mist be in place before 'man' can

be of use in any business activity. A supply chain department grew

out of this thinking and has been a very useful and effective aspect

of business management. A group of cement factory

workers waiting for supply of limestone may have nothing much to

do for as long as the supply does not arrive. Even if it arrives, but

in poor quality, the production is certainly doomed for a loss.

Quality compromised is business pauperized. Poor quality of

materials potentially ruins entrepreneurship. This is an indisputable

fact.

MACHINES

The metal contraptions called machines have made man fulfil

almost effortlessly various dreams of creating things that make a

existence more worthwhile. Machines have replaced man in tilling,

planting, and harvesting. Man has been replaced with looms in

cotton and fabric processing. Countless other ventures

requiring physical exertions of force has been taken over by things

fixed with gears, bolts and nuts and conveyor belts. Recently,

computers joined in the fray of increasing production and reduction

in time spent by man for manufacturing and general production of

goods and services. However, without man and

materials, machines will be useless. They need to be operated by

man and fed with materials. That again is a doubtless fact.

MINUTES

Time management is one contemporary aspect of business that has

been employed in use by effective and successful business ventures

to optimize delivery. As earlier noted, lateness and absenteeism of

man at work is a large chunk of time off production. Poor time

management is as ineffectual as a broken down machine, an

indisposed employee or lack of adequate materials for production

of goods or services. Various schemes have been used by

successful enterprises to ensure proper anfd efficient use of time by

man and machine, including timely delivery of materials, to ensure

business sustainability. Compromising time is tantamount to a

business venture shooting itself in the foot. There are umpteen

instances to ascertain this truism.

MONEY

Without money, no venture or enterprise can motivate workers, get

quality and sufficient materials, get the right machines and

maintain them or even ensure that time is properly managed.

Money management, when not properly organized has been the

most known factor involved in collapse of enterprises in history.

The quantity and quality of money expended in ventures have a

direct bearing on the fruitfulness of same over time.

Accounts department have been revolutionarized over the years,

by man, to ensure maximum operations of surviving business

organizations. Where there is not enough money, no good workers,

materials, or machines can be employed or purchased or

acquired. In other words, such a venture will be wasting its time

existing in the first place.

1.2 HRM

The term human resource spells the total sum of all the components

(like skill, creative abilities) possessed by all employees and other

persons (like self employed, employees, owners etc.) who

contribute their services to attain the organisational objectives and

goals. Human resources includes human values, ethos.

DEFINITION OF HUMAN RESOURCE

MANAGEMENT

Human Resource Management is concerned with the people who

work in the organisation to achieve the objectives of the

organisation. It concerns with acquisitions of appropriate human

resources, developing their skills and competencies, motivating

them for the best performance and ensuring their continued

commitment to the organisation to achieve organisational

objectives.

1.3 HUMAN RESOURCES DEVELOPEMENT

It is the process of improving, moulding, and changing the skills,

knowledge, creative ability, aptitude, attitude, values, commitment

etc based on present and future job and organizational

requirements.

1.4 OBJECTIVES & FUNCTIONS OF HUMAN

RESOURCES DEPARTMENT

HRM OBJECTIVES FUNCTIONS TO BE

PERFORMED

(1) social (towards

society)

(1)Legal compliance

(2)Benefits

(3)Union Management

relations

(2)Organisational

objectives

(1)Human resources

planning

(2)Selections Training and

Development

(3)Employee Relations

(4)Employee Evaluation

Assessment, Appraisal

(3)Functional objectives (1)Appraisal

(2)Placement

(4)Personal

Objectives(towards

employees)

(1)Training &

Development

(2)Appraisal

(3)Assessment /Placement

(4)Compensation

The following figure below briefly enunciates the functions of

HRM

Mission & objectives of organisation

Strategies , objectives,Policies of HRM

Managerial functions of HRM

Planning

Oraganisin

g

Operative Funct

ionEmployement

Human

Resource Develpomen

Compensation

Rewards

Employee Relation

Directing

Controlling

OPERATIVE FUNCTIONS OF HRM

Employme

nt

Human

resource

Development

Compensation

Rewards

Employee

relations

Organisatio

nal design

Training &

Development

Remuneration Communica

tion

Job Design Performance

Appraisal

Job Evaluation Motivation

Job

Analysis

Performance

Improvement

Salary &

Benefits

Morale

Human

Resource

Planning

Career

Planning

Administration Job

satisfaction

Recruitmen

t

Management

Development

Incentives Grievances

Redrassal

Selection Organisation

Development

Rewards Discipline

Maintenanc

e

Induction Organisation

Change

Quality of

work life

placement Participatio

n Quality

Circles.

CHAPTER – 2

2. TRAINING AND DEVELOPMENT

INTRODUCTION

Every organisation needs to have well trained and experienced

people to perform the activities that have to be done. If the current

or potential job occupant can meet this requirement, training is not

important. But when this is not the case, it is necessary to raise the

skill levels and increase the versatility and adaptability of

employees. Inadequate job performance or a decline in productivity

or changes resulting out of job redesigning or a technological

breakthrough requires some type of training and development

efforts. As the jobs become more complex, the importance of

employee development also increases. In a rapidly changing

society, employee training and development are not only an activity

that is desirable but also an activity that an organisation must

commit resources to if it is maintain a viable and knowledgeable

work force.

DEFINITION

According to Edwin Flippo, training is “the act of increasing the

knowledge and skills of an employee for doing a particular job.”

THREE TERMS: TRAINING, DEVELOPMENT AND

EDUCATION

Training is a process of learning a sequence of programmed

behaviour. It is application of knowledge. It gives people an

awareness of the rules and procedures to guide their behaviour. It

attempts to improve their performance on the current job or prepare

them for an intended job. Development is a related process. It

covers not only those activities which improve job performance but

also those which bring about growth of the personality; help

individuals in the progress towards maturity and actualisation of

their potential capacities so that they become not only good

employees but better men and women. In organisational terms, it is

intended to equip persons to earn promotion and hold greater

responsibility. Training a person for a bigger and higher job is

development. And this may well include not only imparting

specific skills and knowledge but also inculcating certain

personality and mental attitudes. In this sense, development is not

much different from education. Education is the understanding and

intervention of knowledge. It does not provide definitive answers,

but rather it develops a logical and rational mind that can determine

relationships among pertinent variables and thereby character, and

understanding of basic principles and develop the capacities of

analysis, synthesis and objectivity. Usually, Education is outside

the scope of an organisation’s functions. It involves a range of

skills and expertise which can be provided only by educational

institutions. An organisation can and does make use of such

institutions in order to support and supplement its internal training

and development efforts.

2.1 NEED FOR TRAINING

(i) To improve productivity:-“purposeful instruction can help

employee’s increases their level of performance on their present

assignment. Increased human performance often directly leads to

increased operational productivity and increased company profit.

Again, “increased performance and productivity, because of

training, are most evident on the part of new employees who are

not yet fully aware of the most efficient and effective ways of

performing their jobs.”

(ii) To improve Quality:-“Better informed workers are less likely

to make operational mistakes. Quality increases may be in

relationship to a company product or service, or in reference to the

intangible organisational employment atmosphere.”

(iii) To Help a company fulfil personnel needs:-“organisations

that have a good internal education programme will have to make

less drastic manpower changes and adjustments in the event of

sudden personnel alternations. when the need arises, organisational

vacancies can more easily be staffed from internal sources if a

company initiates and maintains an adequate instructional

programme for both its non- supervisory and managerial

employees.”

(iv) To improve Organisational climate:-“An endless chain of

positive reactions results from a well- planned training programme.

Production and product quality may improve; financial incentives

may then be increased, internal promotions become stressed less

supervisory pressure ensure and base pay rate increases results.

Increased morale may be due to many factors, but one of the most

important of these is the current state of an organisation’s

educational endeavour.

(v) To improve health and safety:-“Proper training can help

prevent industrial accidents. A safer work environment leads to

more stable mental attitudes on the part of employees. Managerial

mental state would also improve if supervisors know that they can

better themselves through company –designed development

programmes.”

(vi) Obsolescence prevention:-“Training and development

programmes foster the initiative and creativity of employees and

help to prevent manpower obsolescence, which may be due to age,

temperament or motivation, or the inability of a person to adapt

himself to technological changes.”

(vii) Personal Growth:-“Employees on a personal basis gain

individually from their exposure to educational

experiences.”Again, “Management development programmes seem

to give participants a wider awareness, an enlarged skill, and

enlightened altruistic philosophy, and make enhanced personal

growth possible.”

2.2 STEPS IN TRAINING AN EMPLOYEE

Training is a systematic process for an organisation and it is most

effectively done by HR people. A training program can be analyzed

when it is conducted properly. The training process can be

explained as follows:-

1. Organizational analysis:-This involves the study of the entire

organisation in terms of its objectives, its resources the allocation

and utilization of this resource for achievement of objectives. The

training philosophy for the entire organization can be developed

through this process. In this case identification of organizational

objectives needs growth, potential and resources are analyzed.

2. Role analysis:-in stage we analyse what type of knowledge and

attitude is required for achieving the goal. If this involves a careful

study of the job within an organisation it requires an orderly and

systematic collection of data about the job. How they are to be

performed, what behaviour technique the job holder must have to

perform and hold i.e. specific task.

3. Manpower analysis:-The focus is on the individual in a given

job rather than on job itself. Three basic issues are involved for

training purposes:-

a. Appropriate observation and evaluation.

b. Whether current employees are capable of being trained.

c. Attitude of employees, are they willing to be improved and then

training programs are organized.

4. Training needs:-when Training programs are organized, the

focus is on the fact that it should always be beneficial for the

employees and the organization and the results can be measured.

5. Developing training plans and procedures:-The next step

is what type of training program can be organized for specification

situation, planning is more difficult than conducting training.HR

manager mostly organizes a training program, selects a resource

person to make a course plan and then training starts.

6. Conducting training program:-In this individual training,

group training, on the job training is organized. There may be

different methods of training. They may be indoor or outdoor, on

the job or off the job, conferences, lectures, seminars or workshops.

The planning is done by HR department but it should be beneficial

for trainees.

7. Follow up:-After conducting program, evaluation is carried so

that effectiveness of training program can be measured.

8. Feed back of results:-Feed back is taken from trainees, are they

benefited, do they need something more important. Suggestion for

further training program are analyzed.

9. Revise if necessary:-If necessary the training program can be

re-conducted for those who require it.

2.3 METHODS OF TRAINING

In the field of Training, a number of programmes are available.

Some of these are new methods, while others are improvements

over the traditional methods. The training programmes commonly

used to train operative and supervisory personnel are discussed

below. These programmes are classified into on-the-job training.

A. On the job training:-

It is the most common method used by industry to train individual

is on the job training. Every employee from clerk to general

manager gets some on the job training. Under this method the

employee is given training at his work place by its immediate

superior. The management should keep a close watch on training

program. There are 3 methods of on the job training:-

1. Coaching:-

The trainee is placed under a particular supervisor who functions as

a coach in training the individual. The supervisor provides

feedback to the trainee on his performance and offers him some

suggestions for improvement often the trainee shares some of the

duties and responsibilities of the coach and relieves him of his

burden. A limitation of this method of training is that the trainee

may not have the freedom or opportunity to express his own ideas.

2. JOB ROTATION:-

This type of training involves the movement of the trainee from

one job to another the trainee receives job knowledge and gains

experience from his supervisor or trainer in each of the different

job assignments. though this method of training is common in

training managers for general management positions, trainees can

also be rotated from job to job in workshop jobs. This method gives

an opportunity to the trainee to understand the problems of

employees on other jobs and respect them

3. SPECIAL ASSIGNMENTS:-

Under the committee assignment, a group of trainees are given and

asked to solve an actual organizational problem. The trainees solve

the problem jointly. It develops teamwork.

B. OFF THE JOB TRAINING:-

1. LECTURE:-

This is the most commonly and widely used technique. It is suitable

when information is to be shared to a large audience. There are at

least 2 valuations in this method talk and discussion. Talk involves

trainee to raise questions thus maintaining the interest in the topic.

In discussion knowledge, ideas and Opinion are freely exchanged

among the trainees.

2. CONFERENCES:-

This method is used to help employees to develop problem solving

skills. Group discussion and meetings are 2 common techniques

often made use in organization. Trainer leads the discussion and the

trainee attempts to solve the problem and give reasons. Leader

should be able to lead the discussion without losing sight of the

topic. It participate employees and helps to upgrade their

knowledge which brings a change in behaviour.

3. CASE STUDY AND ROLE PLAY:-

Case study method is developed by Christopher Langdeln in 1980

at Howard Law School to help students to learn for themselves by

management thinking. It is a common form of training to the

employees. In this method a case is given to the employees where

they need to solve it by using modern techniques. As each

employee answer will be differing form each other this will be help

them from different angles.

Role play was develop by MORENO. In this method an artificial

situation experiencing the problem. This makes them solve quickly

and find appropriate solution. It consists of employee employer

relation, hiring or firing, etc. It helps the employees to develop

insight.

4. IN-BASKET TRAINING:-

It is a method of training and a type of management games. In

basket many times situation are given a chit an employees have to

write their own reaction on situation and in this way they release

their tension.

Thus training and development is important for any organization to

develop or achieve goals. The HR department should be careful

while planning for training. There are many methods of training

depending upon organization to organization. But, the above

mention some of the methods of training and development.

CHAPTER-3

3. PERFORMANCE APPRAISAL

INTRODUCTION

Performance appraisal is the process of obtaining, analyzing and

recording information about the relative worth of an employee.

The focus of the performance appraisal is measuring and

improving the actual performance of the employee and also the

future potential of the employee. Its aim is to measure what an

employee does.

According to Flippo, a prominent personality in the field of

Human resources, "performance appraisal is the systematic,

periodic and an impartial rating of an employee’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.

By focusing the attention on performance, performance appraisal goes

to the heart of personnel management and reflects the management's

interest in the progress of the employees.

3.1 OBJECTIVES OF PERFORMANCE

APPRAISAL

Following are the objectives of performance appraisal:

1. Review the performance of the employees over a given period of

time.

2. Judge the gap between the actual and the desired performance.

3. Help the management in exercising organizational control.

4. Diagnose the training and development needs of the future.

5. Provide information to assist in the HR decisions like

promotions, transfers etc.

6. Provide clarity of the expectations and responsibilities of the

functions to be performed by the employees.

7. Judge the effectiveness of the other human resource functions of

the organization such as recruitment, selection, training and

development.

8. Reduce the grievances of the employees.

9. Helps to strengthen the relationship and communication between

superior – subordinates and management – employees

3.2 THE PROCESS OF PERFORMANCE

APPRAISAL

1. ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the

setting up of the standards which will be used to as the base to

compare the actual performance of the employees. This step

requires setting the criteria to judge the performance of the

employees as successful or unsuccessful and the degrees of their

contribution to the organizational goals and objectives. The

standards set should be clear, easily understandable and in

measurable terms. In case the performance of the employee

cannot be measured, great care should be taken to describe the

standards.

2. COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to

communicate the standards to all the employees of the

organization. The employees should be informed and the

standards should be clearly explained to the employees. This

will help them to understand their roles and to know what

exactly is expected from them. The standards should also be

communicated to the appraisers or the evaluators and if required,

the standards can also be modified at this stage itself according

to the relevant feedback from the employees or the evaluators.

3. MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the Performance appraisal process is

measuring the actual performance of the employees that is the

work done by the employees during the specified period of time.

It is a continuous process which involves monitoring the

performance throughout the year. This stage requires the careful

selection of the appropriate techniques of measurement, taking

care that personal bias does not affect the outcome of the process

and providing assistance rather than interfering in an employees

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A Project Report on Performance Appraisal and Training in Learlita Ltd

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learlita engineering

safe playing

high esteem

critical incidence

improve organisational

performance