Executive SummaryThe consequent changes in the organizational
environment have forced organizations to look for better avenues of
performance improvement, resulting in a changed perspective for
Performance Appraisal activities in organizations. The emphasis now
is more on an overall development, which means a more integrated
approach towards Performance Appraisal is needed. Performance
Appraisal aims at developing the motivation of the employees to the
best extent possible, to make them contribute to the organizational
goals.The project is based on MMTC LTD., which is basically a
trading company. I have made this report to get the knowledge about
the performance appraisal system. The company comprises of the
following departments: Finance department. Marketing department
Human Resource department. Purchase and store department Vigilance
departmentThe importance of Performance Appraisal cannot be denied
by any organization as it is essential for its effective and smooth
functioning. This study aims to understand the intensity of
performance appraisal in the organization. Different levels and
different departments have been taken under consideration. Few
recommendations have also been provided. Efforts have been made to
closely observe the practice, benefits, disadvantages and
suggestions in this regard as well. The present study is an attempt
to explore the Performance Appraisal System at Lodhi Road Branch in
New Delhi. The sample size was 50(for each questionnaire) which
consisted of employees at different levels of hierarchy. The
sampling technique used was Convenience Sampling. The statistical
tool used was Questionnaire. The data has been represented in the
form of Percentages and Pie-charts.
This project explains performance appraisal system and tries to
find out how efficiently Performance Appraisal is conducted, and if
performance appraisal doesnt meet its objective then, what are the
factors causing failure.
Table of Contents
Chapter NumberChapter NamePage Number
Chapter 1Introduction8
1.1Overview Of The Industry9
1.2About The Organisation10
1.2.1Profile Of The Organisation10
1.2.2SWOT Analysis 15
1.3About The Topic16
Chapter 2Research Methodology21
2.1Objective Of The Study22
2.2Scope Of The Study22
2.3Rationale Of The Study22
2.4Methodology23
2.4.1Type Of Research23
2.4.2Research Design23
2.4.3Sources Of Data Collection23
2.4.4Sample Design and Sample Size24
2.4.5Tool Of Primary Data Collection24
Chapter 3Findings And Analysis25
Chapter 4Limitations Of The Study50
Chapter 5Conclusion And Recommendations52
Appendices55
Bibliography60
Chapter I - Introduction
1.1 Overview Of The IndustryThe mining industry in India is a
major economic activity which contributes significantly to the
economy of India. The GDP contribution of the mining industry
varies from 2.2% to 2.5% only but going by the GDP of the total
industrial sector it contributes around 10% to 11%. Even mining
done on small scale contributes 6% to the entire cost of mineral
production. Indian mining industry provides job opportunities to
around 700,000 individuals.[1]India is the largest producer of
sheet mica, the third largest producer of iron ore and the fifth
largest producer of bauxite in the world. India's metal and mining
industry was estimated to be $106.4bn (68.5bn) in 2010.[2]However,
the mining in India is also infamous for human right violations and
environmental pollution. The industry has been hit by several high
profile mining scandals in recent times.[2]Unless controlled by
other departments of the Government of India mineral resources of
the country are surveyed by the Indian Ministry of Mines, which
also regulates the manner in which these resources are used.[6] The
ministry oversees the various aspects of industrial mining in the
country.[6] Both the Geological Survey of India and the Indian
Bureau of Mines are also controlled by the ministry.[6] Natural
gas, petroleum and atomic minerals are exempt from the various
activities of the Indian Ministry of Mines.[6]
1.2 About The Organisation1.2.1 Profile Of The Organisation
MMTC Ltd., Metals and Minerals Trading Corporation of India, is
the highest earners offoreign exchangeforIndiaand India's largest
public sector trading body. Not only handling the export of primary
products such ascoal,iron ore, and manufactured agro and industrial
products,MMTCalso imports important commodities such ferrous and
non-ferrous metals ofagriculturalfertilizers. MMTC's diverse trade
activities cover Third Country Trade, Joint Ventures and Link Deals
and all modern forms of international trading. The Company has a
vast international trade network, spanning almost in all countries
inAsia,Europe ,Africa,Oceania,Americaand also includes a wholly
owned international subsidiary inSingapore, MTPL. It is one of
theMiniratnascompanies.MMTC is one of the two highestforeign
exchangeearner for India (after petroleum refining companies).[1]It
is the largest international trading companyof India and the
firstpublic sectorenterprise to be accorded the status of Five Star
Export Houses byGovernment of Indiafor long standing contribution
to exports.Being the largest player inbulliontrade,
includingretailing,MMTC's share was 146 tons ofgoldout of the total
import of 600 tons of the precious metal in 2008-09.
FoundationThe Company was incorporated on 26 September 1963 at
New Delhi. The Corporation started functioning on 1 October. The
main objectives of the company were export ofmineral oresand import
of essentialmetals. According to latest news, MMTC is Asias biggest
gold and silver importer.AfterIndependencethe government decided to
authorize theminingof scarcemineral resourcesto thepublic
sectorrather thanprivate sector, although India's National Mineral
Policy clearly states that it does not "preclude the State from
securing the co-operation of private enterprise in the larger
interest of the State or with a view to accelerating the pace of
development".The MMTC has its origins in the 1950s, when theIndian
government, with the interest of boosting agricultural and
industrial development, determined to earn valuable foreign
currency through the export ofcanalizedmineral ores, which the
country had huge deposits of. As a consequence of the government's
decision to earnforeign currency, the State Trading Corporation of
India Ltd. was founded in 1956, as a wholly
ownedgovernmentsubsidiary, to handle the export and import of
selected commodities.
Corporate MissionAs the largest trading company of India and a
major trading company of Asia, MMTC aims at improving its position
further by achieving sustainable and viable growth rate through
excellence in all its activities, generating optimum profits
through total satisfaction of shareholders, customers, suppliers,
employees and society
Corporate Objectives To be a leading International Trading House
in India, operating in the competitive global trading environment,
with focus on bulk as core competency; and to improve returns on
capital employed. To retain the position of single largest trader
in the country for product lines like minerals, metals and precious
metals. To render high quality of service to all categories of
customers with professionalism and efficiency. To provide support
services to the medium and smallscale sectors. To streamline system
within the company for settlement of commercial disputes.
MMTC TodayOne of the largest International Trading Company of
India. Largest exporter of Minerals from India, bagging CAPEXIL
award consecutively for the last 20 years One of the largest
importer/ supplier of Bullion and Non-ferrous Metals in the
country. Leading international traders of Agro, Fertilizers Coal
& Hydrocarbons. Present at 56 locations in India through
offices, warehouses, port offices and retail outlets. Subsidiary in
Singapore (MTPL) holds prestigious "Global Trader Programme' (GTP)
status. Enhanced product offerings through its promoted project,
Neelachal Ispat Nigam Ltd. (NINL), a 1.10 million ton Iron &
Steel Plant in Orissa.
Awards and RankingsFollowing Awards and Rankings were conferred
during 2008-09:Gold Trophy for being topExporterfor the Year
2006-07 in Merchant Exporter category by EEPCCAPEXIL highest award
for highest export in Minerals and Ores sector for the year
2007-08, (17th time in a row)Niryat Shree Bronze Trophy for the
year 2005-06 presented by the Hon'ble President of India, in
January 2009 in the Highest Foreign Exchange Earner category by
Federation of Indian Exporters Organization (FIEO).Top Indian
Company in the Trading Sector by Dun & Bradstreet in their
rankings 'India's Top 500 companies 2008'. In the same publication
ranked 13th based on total income for the year 2007-08.Ranked as
the Highest Wealth Creator PSU by Dalal Street Journal.Top ranking
in the list of India's top 100 wealth creation companies published
by the Times Group and the Economic Times in their publication
'ET500' released in Oct 2008. In the same publication MMTC has been
ranked 17th amongst India's biggest companies.Ranked 4th amongst
India's most valuable Public Sector Companies by 'Business Today'
in its publication 'BT500' released in November 2008. In the same
publication, ranked at 6th place amongst 10 most valuable
companies.Ranked 12th in the list of India's Top PSUs 2009 released
byDun & Bradstreet
Domestic Activity Sanchi SilverwareSanchi is MMTC's brand of
Silverware specifically introduced for the quality conscious
consumer. MMTC has introduced sterling silverware (92.5%) for the
discerning customers. Sanchi is known for its purity, quality and
design. The designs are simple yet elegant and appealing.
Domestic Activity Assaying & Hall MarkingIn an endeavour to
promote awareness for purity standards for precious metal products,
MMTC as one of the pioneers has set up the first assaying and hall
marking unit at New Delhi for testing the purity of gold and gold
articles with the internationally accepted Fire Assay method in
operation. This unit has been inspected by experts from the London
Assay Office and has been certified by Bureau of Indian Standards.
On behalf of Government of India, BIS took the charge and launched
the scheme of gold hallmarking in India. BIS recognized MMTC as one
of the leading agency for assaying and hallmarking. MMTC has
A&H Centers at Jaipur, Kolkata, and Delhi & Vizag.On
receipt of jewellery from jewelers - assaying is done for
determination of cartage and subsequently hallmarked. The
hallmarked jewellery is stamped and certified with logos: a) BIS
logo, b) MMTC logo and c) the cartage. The entire process is as per
established norms of ISO 9000 series.
Domestic Activity Jewelry Exhibition
MMTC organizes domestic exhibition of Gems and Jewellery,
Medallion and Sanchi products at locations across India with the
name Festival of Gold.MMTC procures plain gold jewellery as well as
jewellery studded with diamonds, precious & semi precious
stones of varieties selected from all over India.Jewellery is
meticulously chosen of fine quality and of an exclusive range from
each region. MMTC displays Jewellery of wide varieties- Regional
specialties of both traditional and modern designs. The jewellery
collection consists of pendants, earrings, finger rings, Kadas,
Bangles, bracelets and varieties of full sets. With this
collection, MMTC targets modern age women, men, tourists and people
both Indian and International.
1.2.2 SWOT Analysis
STRENGTHS
Monetary assistance provided Reduced labour costs Experienced
business units Negligent barriers of market entry Existing
distribution and sales networkWEAKNESSES
High loan rates are possible Small business units Future
competition
OPPORTUNITIES
Growing economy Venture Capital Global marketsTHREATS
Financial capacity Rising cost of raw materials Global
economy
1.3About The TopicBasic Concept:In HRM, performance appraisal is
use to evaluate employees current and past performance relative to
his performance standard. Its effect may result in increased pay, a
promotion or assistance in personal development areas through
training. Evaluating the performance may take the form of a
five-minute discussion between employees and their supervisor, or a
more elaborate, several week processes involving many specific
steps. Performance appraisal also assumes that the employee
understood his performance standard and the required areas of
improvement. His supervisor provides the employee with the
feedback, development and incentives required to help the person
eliminate performance deficiencies .The aim should be to improve
performance. Why Performance AppraisalsHR departments use the
informal gathered through performance appraisals to evaluate the
success of recruitment, selection, orientation, placement,
training, and other activities. Although informal and ongoing
appraisals on a day-to-day basis are necessary to a smooth
operation, these methods are insufficient for the HR departments
needs. Formal appraisals are needed to help managers with
placement, pay, and other HR decisions.Uses of Performance
Appraisals Performance improvement: Performance feedback allows the
employee, the manager, and personnel specialists to intervene with
appropriate actions to improve performance. Compensation
adjustments: Performance evaluations help decision makers determine
who should receive pay raises. Many firms grant part or all of
their pay increases and bonuses on the basis of merit, which is
determined mostly through performance appraisals. Placement
decisions: Promotions, transfers, and demotions are usually based
on past or anticipated performance. Often promotions are a reward
for past performance. Development needs Training and: Poor
performance may indicate a need for retraining. Likewise, good
performance may indicate untapped potential that should be
developed. Career planning and development: Performance feedback
guides career decisions about specific career paths one should
investigate. Staffing process deficiencies: Good or bad performance
implies strengths or weaknesses in the personnel departments
staffing procedures. Informational inaccuracies: Poor performance
may indicate errors in job analysis information, human resource
plans, or other parts of the personnel management information
system. Reliance on inaccurate information may have led to
inappropriate hiring, training, or counseling decisions. Job-design
errors: Poor performance may be a symptom of ill-conceived job
designs. Appraisals help diagnose these errors. Equal employment
opportunity: Accurate performance appraisals that actually measure
job-related performance ensure that internal placement decisions
are not discriminatory. External challenges: Sometimes performance
is influenced by factors outside the work environment, such as
family, financial, health, or other personal matters. If these
factors are uncovered through appraisals, the human resource
department may be able to provide assistance. Feedback to human
resources: Good or bad performance throughout the organization
indicates how well the human resource function is
performing.Methods of Performance appraisalThree different
approaches exist for doing appraisals. Employees can be appraised
against (1) absolute standards, (2) relative standards, or (3)
objectives. No one approach is always best; each has its strengths
and weaknesses.Absolute Standards Our first group of appraisal
methods uses absolute standards. This means that employees are
compared to a standard; and their evaluation is independent of any
other employee in a work group. Included in this group are the
following methods-, the essay appraisal, the critical incident
appraisal, the checklist, the adjective rating scale, forced choice
and behaviorally anchored rating scales. Lets look at each of
these, focusing on their strengths and weaknesses1. Essay
Appraisal: The Essay Appraisal probably the simplest method of
appraisal is to have the appraiser write a narrative describing an
employees strengths, weaknesses, past performance, potential, and
suggestions for improvement. The strength of the essay appraisal
lies in its simplicity. It requires no complex forms or extensive
training to complete. The essay appraisal is also valuable in
providing specific information, much of which can be easily by the
employee.2.Critical Incident Appraisal: The Critical incident
appraisal focuses the raters attention on those critical or key
behaviours that make the difference between doing a job effectively
and doing it ineffectively. The appraiser writes down anecdotes
describing what the employee did that was especially effective or
ineffective. For example, a police sergeant might write the
following critical incident about one of her officers: Brought
order to a volatile situation by calmly discussing options with an
armed suspect during a hostage situation which resulted in all
hostages being released, and the suspect being apprehended without
injury to any individual. Note that with this approach to
appraisal, specific behaviours are cited, not vaguely defined
individual traits. A behaviour-based appraisal such as this should
be more valid than trait-based appraisals because it is clearly
more job related. It is one thing to say that an employee is
aggressive, imaginative, or relaxed, but that does not tell us
anything about how well the job is being done. Critical incidents,
with their focus on behaviours, judge performance rather than
personalities.3.Checklist appraisal: In the checklist appraisal,
the evaluator uses a list of behavioural descriptions and checks
off those behaviours that apply to the employee. Once the checklist
is complete, it is usually evaluated by the HRM staff, not the
appraiser completing the checklist. Therefore the rater does not
actually evaluate the employees performance; he or she merely
records it. An analyst in HRM then scores the checklist, often
weighing the factors in relationship to their importance to that
specific job. The final evaluation can then be returned to the
appraiser for discussion with the employee, or someone from HRM can
provide the feedback to the employee. The checklist appraisal
reduces some bias in the evaluation process since the rater and the
scorer are different: However, the rater usually can pick up the
positive and negative connections in each itemso bias can still be
introduced. From a cost standpoint, too, this appraisal method may
be inefficient if there are a number of job categories for which an
individualized checklist of items must be prepared.4.The
Behaviourally Anchored Rating Scales: The Behaviorally Anchored
Rating Scales (BARS) combine major elements from the critical
incident and adjective rating scale approaches. The appraiser rates
the employees based on items along a continuum, but the points are
examples of actual behavior on the given job rather than general
descriptions or traits. Behaviorally anchored rating scales specify
definite, observable, and measurable job behavior. Possibly its
major advantage stems from the dimensions generated, rather than
from any particular superiority of behavior over trait anchors. The
process of developing the behavioral scales is valuable for
clarifying to both the employee and the rater which behaviors
represent good performance and which dont. Unfortunately, it, too,
suffers from the distortions inherent in most rating
methods.Relative StandardsIn the second general category of
appraisal methods, individuals are compared against other
individuals. These methods are relative standards rather than
absolute measuring devices. The most popular of the relative
methods are group order ranking, individual ranking, and paired
comparison.1.Group Order Ranking: Group order ranking requires the
evaluator to place employees into a particular classification, such
as top 20 percent. This method, for instance, is often used in
recommending students to graduate schools. Evaluators are asked to
rank the student in the top 5 percent, the next 5 percent, the next
15 percent, and so forth. But when used by appraisers to evaluate
employees, raters deal with all their employees in their area. So,
for example, if a rater has twenty employees, only four can be in
the top fifth; and, of course, four also must be relegated to the
bottom fifth.2. Individual Ranking: The individual ranking method
requires the evaluator merely to list the employees in order from
highest to lowest. In this process, only one employee can be rated
best. If the evaluator is required to appraise thirty individuals,
this method assumes that the difference between the first and
second employee is the same as that between the twenty-first and
the twenty-second. Even though some of these employees may be
closely grouped, this method typically allows for no ties. In terms
of advantages and disadvantages, the individual ranking method
carries the same pluses and minuses as group order ranking. For
example, individual ranking may be more manageable in a department
of six employees than in one where a supervisor must evaluate the
19 employees that report to her.3. Paired Comparison: The paired
comparison method is calculated by taking the total of [N(N 1)1/2
comparisons. A score is obtained for each employee by simply
counting the number of pairs in which the individual is the
preferred member. It ranks each individual in relationship to all
others on a one-on-one basis. If ten employees are being evaluated,
the first person is compared, one by one, with each of the other
nine, and the number of times this person is preferred in any of
the nine pairs is tabulated. Each of the remaining nine persons, in
turn, is compared in the same way, and a ranking is formed by the
greatest number of preferred victories. This method ensures that
each employee is compared against every other, but the method can
become unwieldy when large numbers of employees are being
compared.4) Periodic reviews: Finally, with periodic progress
reviews, corrective action is initiated when behavior deviates from
the standards established in the goal-setting phase. Again,
consistent with the MBO philosophy, these supervisor-employee
reviews are conducted in a constructive rather than punitive
manner. Reviews are not meant to degrade the employee but to aid in
future performance. These reviews should take place at least two or
three times a year. What will these objectives look like? It is
important that they be tangible, verifiable, and measurable. This
means that, wherever possible, we should avoid qualitative
objectives and substitute quantifiable statements. For example, a
quantitative objective might be to cut, each day, 3,500 yards of
cable to standard five-foot lengths, with a maximum scrap of 50
yards, or to prepare, process, and transfer to the treasurers
office, all accounts payable vouchers within three working days
from the receipt of the invoice.
Chapter-II. Research Methodology
2.1 Objectives of the study The study seeks the following
objectives: To study the process and to understand the importance
of Performance Appraisal System in MMTC that synchronizes the
performance of the employees, so as to make the work effective. To
analyze the Performance Management System of MMTC in detail and its
effectiveness. To analyze the problems faced by the appraise and
the appraiser in this system. . To find the expectation of
appraiser and appraise. To determine the satisfaction level of the
appraise. To reveal the various loopholes in the appraisal system
if any To find the consequences of an inappropriately conducted
appraisal system
2.2 Scope of the studyThe feedback survey on the Performance
Appraisal as a Management Process has been conducted in the Delhi
branch of MMTC. The different levels & departments of the
organization have been attempted to cover in the study.
2.3 Rationale of the studyPerformance appraisal is a process of
assessing, summarizing and developing the work performance of an
employee. In order to be effective and constructive, the
performance manager should make every effort to obtain as much
objective information about the employee's performance as possible.
Low performance can push the organization back in todays tough
competition scenario. The project is aimed at analyzing the
performance appraisal system of MMTC. .
2.4 Methodology2.4.1 Type of ResearchAs the name suggests,
Quantitative Research is based on the measurement of quantity or
amount. It is applicable to a phenomenon that can be expressed in
terms of quantity. Quantitative research refers to the systematic
empirical investigation of social phenomena via statistical,
mathematical or numerical data or computational techniques. The
objective of quantitative research is to develop and
employmathematical models,theories and/orhypothesespertaining to
phenomena. The process ofmeasurementis central to quantitative
research because it provides the fundamental connection
betweenempiricalobservationand mathematical expression of
quantitative relationships.Qualitative research on the other hand,
is concerned with qualitative phenomenon, i.e., phenomenon relating
to or involving quality or kind. Qualitative researchis a method of
inquiry employed in many different academic disciplines,
traditionally in thesocial sciences, but also in market researchand
further contexts.Qualitative researchers aim to gather an in-depth
understanding ofhuman behaviourand the reasons that govern such
behaviour. The qualitative method investigates
thewhyandhowofdecision making, not justwhat,where,when. Hence,
smaller but focusedsamplesare more often used than large
samples.The nature of research in this case is Quantitative
Research.2.4.2 Research DesignThe research design is descriptive. .
The data was quantified and analyzed in the form of percentage and
pie charts. The quantitative tool used is Questionnaire.2.4.3
Sources of Data CollectionFor any statistical inquiry the
collection of data is done through two sources :- Primary Sources
and Secondary Sources Primary Sources: Primary data are those which
are collected for the first time. Primary sources consist of
questionnaires, interviews, schedules, observation etc. Primary
data for the study has been collected through questionnaire.
Secondary Sources: Secondary data are those which are obtained
from external and third party sources. These consist of
organizations documents and reports or the internet. The secondary
source used in the study is the internet and the various journals
and books pertaining to the subject.
2.4.4 Sample Design and Sample SizeThe sample size taken was 50,
for each questionnaire, and the technique used was Convenience
Sampling, a Non Probability Sampling technique. The questionnaires
were distributed personally to the employees at different levels in
various departments of the organization.A simple statistical data
tool, the percentage analysis method is used in the interpretation
of data results. The data results are illustrated with the help of
pie charts. Further analysis is done on the basis of theoretical
interpretations and deductions of the results exhibited by the
survey.
2.4.5 Tool of Primary Data CollectionThe primary tool of data
collection is questionnaire. There are 10 questions in the each
questionnaire covering different aspects of Performance Appraisal.
The respondents have to select one option from the YES & NO
options available.
Chapter III. Findings and Analysis
Findings from Appraise Survey
1. Do you know what exactly is expected from you at work?
No of respondentsResponse
44Yes
6No
88% of the respondents said yes, which implies that the
appraisers have efficiently communicated to the appraisees all the
parameters that will be taken into account during appraisal.
2. Are you satisfied with the appraisal system?
ResponseNo. Of Respondents
Yes38
No12
From the pie chart, it can be seen that majority of the
respondents are satisfied with the appraisal system. Only 24% were
dissatisfied with the Performance Appraisal programs.
3. Are you aware about performance ratings?
No of respondentsResponse
34Yes
16No
This clearly shows that many of the employees are not aware
about the performance ratings that are taken into account while
conducting a performance appraisal.
4. Do you think one should be able to rate himself/herself for
performance appraisal?
No of respondentsResponse
46Yes
4No
It can be seen that majority of respondents want self rating to
be a method of conducting the appraisals .
5. Does the credibility of appraiser affect the Performance
Appraisal System?
No of respondentsResponse
34Yes
16No
This shows that according to the employees/appraisees the
credibility of the appraiser is extremely important and it has an
effect on the overall Performance appraisal program.
6. Should there be a complaint channel for the employees who are
dissatisfied with the performance appraisal system?
No of respondentsResponse
43Yes
7No
This shows that there is no proper complaint channel existing in
the organisations for the employees who are dissatisfied with the
performance appraisal system.
7. Are the standards on the basis of which performance appraisal
is carried out communicated to the employees before hand?
No of RespondentsResponse
23Yes
27No
From this it can be seen that there is a clear confusion when it
comes to standards being communicated to the employees. Majority
among the employees who say that the standards on the basis of
which the performance appraisal is carried out is not communicated
to the employees before hand.
8. Is the performance appraisal successful in giving a clear
understanding of the appraises job to both the appraiser and the
appraise?
No of RespondentsResponse
34Yes
16No
This shows that the performance Appraisal programs are
successful in giving a clear understanding of the appraisees job to
both appraiser and appraisee.
9. Are the objectives of the appraisal system clear to you?
No of RespondentsResponse
33Yes
17No
From the figure we can derive that the objective for conducting
the Appraisal system is clear only to half of the employees. The
remaining half are not clear about the objective for which the
Performance Appraisal is carried out.
10. Does the appraisal system provide a good communication
between the top management plans and business goals to staff
below?
No of RespondentsResponse
9Yes
41No
This shows that the appraisal systems do not provide a good
communication flow of the top-management plans and business goals
to the staff below.
11. Should a post appraisal interview be conducted?
No of RespondentsResponse
37Yes
13No
As per the response from the employees we can see that there is
no interview conducted after the appraisal program for majority of
the employees.
Findings from Appraiser Survey
1. Is the performance appraisal system helping you to plan your
work well?
No of RespondentsResponse
31Yes
19No
In this question appraiser was asked to rate how helpful the
appraisal system is, from the pie chart, it can be seen that
majority of appraisers have said yes, which implies that
Performance Appraisal system is very helpful in Planning their
work. Also most of the appraisers are satisfied with the appraisal
system.
2. Does the system provide you a chance to communicate the
support you need from your subordinate to perform the job well?
No of RespondentsResponse
0Yes
50No
This question was asked to find out how helpful appraisal system
is in communicating the support that apprasier needs from
appraisee. From results it is seen that the performance appraisal
system is very helpful in communicating the support and help needed
by the appraiser from the appraisee.
3. Are you satisfied with the appraisal system which is being
employed in the company?
No of RespondentsResponse
19Yes
31No
From the results it is clear that majority of the apprasers are
satisfied with the performance appraisal system which is being
followed in the organisation.
4. Does the appraisal system provide a good communication
between the top management plans and business goals to staff
below?
No of RespondentsResponse
47Yes
3No
Almost all the appraisers agree that performance appraisal helps
in communicating the top management plans and business goals to
staff at lower level.
5. Does it give insight to appraisee regarding his/her strength
and weakness?
No of RespondentsResponse
45Yes
5No
It is evident from the results that performance appraisal system
doesnt help the appraiser in understanding strength and weakness of
apraisee.
6. Are the employees comments and suggestions taken into
consideration before the appraisal?
No of RespondentsResponse
7Yes
43No
From the results it can be seen that appraisees comments and
suggestion are not taken into consideration before Performance
Appraisal. Performance Appraisal system is designed by appraiser
without consulting appraisee.
7. Is the performance appraisal successful in giving a clear
understanding of the appraises job to both appraiser and
appraise?
No of RespondentsResponse
50Yes
0No
From this it is clearly seen that according to appraiser there
is a clear and joint understanding of the appraisees job.
8. Are the standards on the basis of which performance appraisal
is carried out communicated to the employees before hand?
No of RespondentsResponse
42Yes
8No
From results it is evident that Performance appraisal standards
are very well communicated to Appraisee before the Appraisal is
carried out.
9. Do you think appraise should be able to rate his/her own
performance?
No of RespondentsResponse
0Yes
50No
From results it can be clearly seen that the Appraisee is not
given a chance to rate his own performance.
10. Do you act upon the results of your performance
appraisal?
No of RespondentsResponse
50Yes
0No
This shows that the organisation act upon the results of their
Performance Appraisal program.
Major FindingsThe following were the major findings of the
study: From the survey results its evident that both the appraisees
and appraisers expectation from Performance appraisal system are
the same i.e. Determination of Promotion or Transfer and Salary
Administration and Benefits. Hence a single performance appraisal
system can satisfy needs of both the Appraiser and appraisee.
Therefore the Performance appraisal program would be designed in
such a way that the appraiser would be able to analyse the
contribution of the employee to the orgaisation periodically and
all the employees who have been performing well would be rewarded
suitably either by an increase in the salary or a promotion.
Through this the appraiser can also motivate the employees who felt
that they had no growth in the organisation and serves the purpose
of employee development.Thus performance appraisals can be used as
a significant tool for career development.
Analyzing ones own strengths and weaknesses is the best way of
identifying the potentials available, rather than the other person
telling. Self-appraisal is a tool to analyze oneself. One of the
most important findings was that almost all the employees wanted
self-rating to be a part of performance appraisal program carried
out by the organisation. From the responses of the appraiser we can
also see that Self rating is not encouraged by the organisations.
This could therefore be an important factor which leads to
dissatisfaction among the appraisees. At the end of the year of the
appraisal period the appraisal process should begin with
self-appraisal by every employee. To appraise ones own self on key
performing targets and qualities, the appraise would go through a
process of reflection and review. It is an established fact that
change is faster when it is self initiated. If any employee has to
improve or do better, he must first feel the need to do so.
Reflection and review is a process that enables him to feel the
need and improve more upon his strengths and weaknesses.
The existence of a proper complain channel was also of utmost
importance to the appraisees. They should be given a chance to
convey their greviences to the top management.
The appraisees also expect that their comments and suggestions
should be taken in to account while conducting the appraisals. This
expectation is not fulfilled as the appraisers do not take their
comments and suggestions into consideration. Therefore, they should
look into this matter before it leads to dissatisfaction among the
employees.
The results also indicate that the there is no communication of
top management plans and business goal to the appraisee. The
appraisers on the other hand feel that the goals and plans have
been clearly communicated to the appraisees. Communication is very
essential for any system to function efficiently. Therefore, the
appraisers should look into this matter and see to it that the
goals and plans are communicated effectively.
The findings suggest that for success of Appraisal system the
credibility of appraiser is of utmost importance.
Also a majority of employees were satisfied with the current
appraisal system although they feel some changes are required.
Most of the employees were also not clear about the criteria on
which ratings were given to each employee while conducting the
performance appraisal. Instead of secrecy there should be openess.
Because of lack of communication, employees may not know how they
are rated. The standards by which employees think they are being
judged are sometimes different from those their superiors actually
use. Proper communication of these ratings can help the employers
achieve the level of acceptability and commitment which is required
from the employ.
From the survey we can also derive that the appraisees expect a
post appraisal interview to be conducted wherein they are given a
proper feedback on their performance and they can also put forward
their complaints if any. The appraisal should also be followed up
with a session of counselling which is often neglected in many
organizations. Counselling involves helping an employee to identify
his strengths and weaknesses to contribute to his growth and
development. Purpose is to help an employee improve his performance
level, maintain his morale, guide him to identify and develop his
strong points, overcome his weak points, develop new capabilities
to handle more responsibilities, identify his training needs.
Chapter-IV Limitations of the Study
Following are the limitations of the study:- The statistical
study covered only 50 respondents from few departments of the
organization.
Large size of the organization and non-availability of some
employees led to difficulty in data collection.
Reluctance of employees in disclosing information is another
limitation that was faced during the study.
Time constraint has been another major issue due to which a
large number of employees could not be covered in the study.
Chapter V Conclusion and Suggestions/Recommendations
Conclusion
With rewards being directly linked to achievement of objectives,
goal setting and Performance Appraisal assumes utmost importance.
The Performance Appraisal System has been professionally designed
and it is monitored by HRD. The implementation is the
responsibility of each and every employee along with their
supervisor. There should be adequate training to the evaluator that
will go a long way in answering the quality of Performance
Appraisal. In conclusion, a Performance Appraisal is a very
important tool used to influence employees. A formal Performance
review is important as it gives an opportunity to get an overall
view of job performance and staff development. It encourages
systematic and regular joint-stocking and planning for the future.
Good performance reviews therefore dont just summarize the past
they help determine future performance.Performance appraisals are
one of the most effective supervisory tools to communicate
expectations, provide feedback, plan work, acknowledge
contributions, and help employees gain the skills to be successful.
As MMTC is committed to do away with disparity and establish
justice in the economy, trade, commerce and industry, build socio
economic infrastructure and create employment opportunities.So MMTC
should do justice with the employees while appraising them
perfectly on the basis of their performance. The appraisal system
has to be reliable and consistent, and should include both
objective and subjective ratings. The appraisal format should be
practical and simple. The process should be participatory and open.
It should be linked with rewards. Feedback is an important part of
appraisal, and has to be timely, impersonal and noticeable. It
should be noted that an appraisal system can be effective only if
it is accepted by employees and if management is fully
committed.
Suggestions and RecommendationsThe following suggestions can be
given to strengthen the Process of Performance Appraisal:
The organization should pay more attention on the competency
development of the employees and their working conditions.
Periodic reviews should be made to analyze the changes taking
place in the organization and to take corrective measures.
Efforts should be undertaken to investigate the effectiveness of
Performance Appraisal practices so that job satisfaction can be
increased to the maximum level.
HRIS should be strengthened to keep up to date information of
each employee and to enable the management to use them for employee
development and growth.
Appendices
Questions for Appraisee
Name: ___________________________Contact
No:__________________________
1. Do you know what exactly is expected from you at work?a.
Yesb. No
2. Are you satisfied with the appraisal system?a. Yesb. No
3. Are you aware of performance ratings?a. Yesb. No
4. Do you think one should be able to rate himself/herself for
performance appraisal?a. Yesb. Nob. 5. Does the credibility of
Appraiser affect the Performance Appraisal System?a. Yesb. No
6. Should there be a complaint channel for the employees who are
dissatisfied with the performance appraisal system?a. Yesb. No
7. Are the standards on the basis of which the performance
appraisal is carried out communicated to the employees before
hand?a. Yesb. No
8. Is the performance Appraisal successful in giving a clear
understanding of the appraisees job to both appraiser and
appraise?a. Yesb. No
9. Are the objectives of appraisal system clear to you?a. Yesb.
No10. Does the appraisal system provide a good communication
between the top-management plans and business goals to staff
below?a. Yesb. No
11. Should a post appraisal interview be conducted?a. Yesb.
No
Questions for Appraiser
Name: ___________________________Contact
No:__________________________
1. Is the Performance Appraisal helping you to plan your work
well?a. Yesb. No
2. Does the system provide you a chance to communicate the
support you need from your subordinate to perform the job well.a.
Yesb. No
3. Are you satisfied with the appraisal system which is being
employed in the company?a. Yesb. No
4. Does the appraisal system provide a good communication
between the top-management plans and business goals to staff
below?a. Yesb. No
5. Does it give insight to appraisee regarding his strength or
weakness?a. Yesb. No
6. Are employees comments and suggestions taken into
consideration before the appraisal?a. Yesb. No
7. Is the performance Appraisal successful in giving a clear
understanding of the appraisees job to both appraiser and
appraise?b. Yesb. No
8. Are the standards on the basis of which the performance
appraisal is carried out communicated to the employees before
hand?a. Yesb. No
9. Do you think appraise should be able to rate his/her own
performance?a. Yesb. No
10. Do you act upon the results of your performance appraisal?a.
Yesb. No
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