Airtech Private Limited Executive Summary Title: “Study of Performance Appraisal System at Airtech Pvt Ltd, Dharwad” Performance appraisal-employee appraisal- performance review or (career) development discussion: It 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. A performance appraisal is a part of guiding and managing career development. The project was conducted on “Study of Performance Appraisal System at Airtech Pvt Ltd, Dharwad” Scope of the study To review the performance of team leaders over a given period of time, to judge the gap between the actual and desired performance. And also diagnose the training and development needs of future. Also to assist in the human resource decisions like recruitment and selection, promotions, transfers, terminations and career planning etc. This study also aims at developing a communication system to deliver job expectations and specific goals and also a KLE’s Institute of Management Studies and Research Page 1
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Airtech Private Limited
Executive Summary
Title: “Study of Performance Appraisal System at Airtech
Pvt Ltd, Dharwad”
Performance appraisal-employee appraisal- performance review or (career) development
discussion:
It 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.
A performance appraisal is a part of guiding and managing career development.
The project was conducted on “Study of Performance Appraisal System at Airtech Pvt Ltd,
Dharwad”
Scope of the study
To review the performance of team leaders over a given period of time, to judge the gap between
the actual and desired performance. And also diagnose the training and development needs of
future. Also to assist in the human resource decisions like recruitment and selection, promotions,
transfers, terminations and career planning etc.
This study also aims at developing a communication system to deliver job expectations and
specific goals and also a performance appraisal system to measure and improve the performance
of team leaders at Airtech Private Ltd.
Objectives
To study and understand the present system of measuring performance.
To study the existing communication system of job expectations and specific goals.
To understand the existing system of training and development needs.
To develop a performance appraisal system to measure, evaluate, improve and monitor
the performance of team leaders at Airtech Private Ltd.
KLE’s Institute of Management Studies and Research Page 1
Airtech Private Limited
Research Methodology
Data collection method:
1) Primary Data:
It is been collected from HR managers, line managers, workers and other stakeholders by
adopting Interview method, observation and through Questionnaire.
2) Secondary Data:
It is been collected with the study of HR text books, company website, company records and also
the internet.
Sampling Method
Here convenience sampling method will be adopted by considering random sample unit.
Tools and Techniques of data Collection
The tools and techniques used will be Questionnaire method for a larger and similar kind of
sample and personal interview method where ever necessary.
Findings
Following are the findings ascertained from the interpretation of the study of Performance
Appraisal System:
Performance Appraisal System at Airtech is conducted once in a year.
As per the interpretation, self appraisal is carried along with 900 and 1800 Appraisal
system. Majority of the people are not clear about which system is followed to appraise
them.
Out of 11, 10 are positive towards the system and are satisfied with the appraisal system
carried out in the organization.
KLE’s Institute of Management Studies and Research Page 2
Airtech Private Limited
Some Recommendations
The employees at Airtech are not aware of the existing Performance Appraisal System. It
creates an ambiguity in employees about the basis on which they are judged. Knowing
the Appraisal system would help them know about the right criteria of appraisal, makes
their work more focused and helps them to connect their individual goals to the
organization goals.
Though self appraisal is conducted, the self appraisal form has to be designed more
specific and in more detail so that it takes out the maximum info from the appraisee and it
results in clear recognition of needs, provides details about their achievements and their
requirements.
3600 appraisal also helps to evaluate subjective areas like Team work, Leadership etc.
KLE’s Institute of Management Studies and Research Page 3
Airtech Private Limited
Industry Profile
History
The first practical automobile with a petrol engine was built by Karl Benz in 1885 in Mannheim,
Germany. Benz was granted a patent for his automobile on 29 January 1886, and began the first
production of automobiles in 1888, after Bertha Benz, his wife, had proved with the first long-
distance trip in August 1888 (from Mannheim to Pforzheim and back) that the horseless coach
was absolutely suitable for daily use. Since 2008 a Bertha Benz Memorial Route commemorates
this event.
Soon after, Gottlieb Daimler and Wilhelm Maybach in Stuttgart in 1889 designed a vehicle from
scratch to be an automobile, rather than a horse-drawn carriage fitted with an engine. They also
are usually credited as inventors of the first motorcycle, the Daimler Reitwagen, in 1885, but
Italy's Enrico Bernardi, of the University of Padua, in 1882, patented a 0.024 horsepower
(17.9 W) 122 cc (7.4 cu in) one-cylinder petrol motor, fitting it into his son's tricycle, making it
at least a candidate for the first automobile, and first motorcycle; Bernardi enlarged the tricycle
in 1892 to carry two adults.
Consumption Trends
About 250 million vehicles are in use in the United States. Around the world, there were about
806 million cars and light trucks on the road in 2007, consuming over 260 billion gallons of
gasoline and diesel fuel yearly. In the opinion of some, urban transport systems based around the
car have proved unsustainable, consuming excessive energy, affecting the health of populations,
and delivering a declining level of service despite increasing investments. Many of these
negative impacts fall disproportionately on those social groups who are also least likely to own
and drive cars.The sustainable transport movement focuses on solutions to these problems.
The Detroit branch of Boston Consulting Group predicts that, by 2014, one-third of world
demand will be in the four BRIC markets (Brazil, Russia, India and China). Other potentially
powerful automotive markets are Iran and Indonesia.
KLE’s Institute of Management Studies and Research Page 4
3. Provide feedback to the employee about job performance in light of management's
objectives.
4. Coach the employee on how to achieve job objectives/requirements.
5. Diagnose the employee's strengths and weaknesses.
6. Determine what kind of development activities might help the employee better utilize his
or her skills improve performance on the current job.
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Airtech Private Limited
The Performance Appraisal Process
The performance appraisal process typically consists of four inter-related steps as follows:
1. Establish a common understanding between the manager (appraiser) and employee
(appraisee) regarding work expectations; mainly, the work to be accomplished and how
that work is to be evaluated.
2. Ongoing assessment of performance and the progress against work expectation.
Provisions should be made for the regular feedback of information to clarify and modify
the goals and expectations, to correct unacceptable performance before it was too late,
and to reward superior performance with proper praise and recognition.
3. Formal documentation of performance through the completion of a performance and
development appraisal form appropriate to the job family.
4. The formal performance and development appraisal discussion, based on the completed
appraisal form and ending in the construction of a Development Plan.
Performance appraisal methods
Performance appraisal methods include 11 appraisal methods / types as follows:
1. Critical incident method
The critical incidents for performance appraisal is a method in which the manager writes down
positive and negative performance behavior of employees throughout the performance period
2. Weighted checklist method
This method describe a performance appraisal method where rater familiar with the jobs being
evaluated prepared a large list of descriptive statements about effective and ineffective behavior
on jobs
3. Paired comparison analysis
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Airtech Private Limited
Paired comparison analysis is a good way of weighing up the relative importance of options.
A range of plausible options is listed. Each option is compared against each of the other options.
The results are tallied and the option with the highest score is the preferred option.
4. Graphic rating scales
The Rating Scale is a form on which the manager simply checks off the employee's level of
performance. This is the oldest and most widely method used for performance appraisal.
5. Essay Evaluation method
This method asked managers / supervisors to describe strengths and weaknesses of an
employee's behavior. Essay evaluation is a non-quantitative technique. This method usually use
with the graphic rating scale method.
6. Behaviorally anchored rating scales
This method used to describe a performance rating that focused on specific behaviors or sets as
indicators of effective or ineffective performance. It is a combination of the rating scale and
critical incident techniques of employee performance evaluation.
7. Performance ranking method
Ranking is a performance appraisal method that is used to evaluate employee performance from
best to worst. Manager will compare an employee to another employee, rather than comparing
each one to a standard measurement.
8. Management By Objectives (MBO) method
MBO is a process in which managers / employees set objectives for the employee, periodically
evaluate the performance, and reward according to the result. MBO focuses attention on what
must be accomplished (goals) rather than how it is to be accomplished (methods)
9. 360 degree performance appraisal
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Airtech Private Limited
360 Degree Feedback is a system or process in which employees receive confidential,
anonymous feedback from the people who work around them. This post also includes
information related to appraisal methods such as 720, 540, 180.
10. Forced ranking (forced distribution)
Forced ranking is a method of performance appraisal to rank employee but in order of forced
distribution. For example, the distribution requested with 10 or 20 percent in the top category, 70
or 80 percent in the middle, and 10 percent in the bottom.
11. Behavioral Observation Scales
Behavioral Observation Scales is frequency rating of critical incidents that worker has
performed.
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Performance Appraisal System Advantages
The performance Appraisal system provides the following five advantages for the employee,
supervisor and company:
1. Compensation and Rewards: A well-administered program gives credibility to assigning
the proper salary increases and bonuses to employees. It allows the supervisor to reward the
right employees and the company to budget properly.
2. Poor Performers: Just as important as rewarding good work, a platform exists to deal with
employees who need improvement. The documentation sets the stage for performance
improvement plans and any other actions that may follow.
3. Good Morale: If employees can count on the fact they will receive thoughtful, consistent
and ongoing performance evaluations, morale improves; productivity increases.
4. Documentation: These valuable records can be used in any legal proceedings to explain
why certain actions were taken. They're also proof that company policies and employee and
company rights have been adhered to.
5. It's the Right Thing to Do: This may sound trite but companies have an inherent
responsibility to be fair to their employees about their performance. A well constructed
performance evaluation program, administered fairly by trained supervisors and managers,
is the best thing a company can do for itself, and for its entire people.
Performance Appraisal System Disadvantages
1. If not done appropriately, can be a negative experience.
2. Are very time consuming, especially for a manager with many employees.
3. Are based on human assessment and are subject to rater errors and biases.
4. If not done right can be a complete waste of time.
5. Can be stressful for all involved.
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Airtech Private Limited
Research Design
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Airtech Private Limited
Scope of the study
To review the performance of team leaders over a given period of time, to judge the gap between
the actual and desired performance. And also diagnose the training and development needs of
future. Also to assist in the human resource decisions like recruitment and selection, promotions,
transfers, terminations and career planning etc.
This study also aims at developing a communication system to deliver job expectations and
specific goals and also a performance appraisal system to measure and improve the performance
of team leaders at Airtech Private Ltd.
Objectives
To study and understand the present system of measuring performance.
To study the existing communication system of job expectations and specific goals.
To understand the existing system of training and development needs.
To develop a performance appraisal system to measure, evaluate, improve and monitor
the performance of team leaders at Airtech Private Ltd.
Research Methodology
Data collection method:
3) Primary Data:
It is been collected from HR managers, line managers, workers and other stakeholders by
adopting Interview method, observation and through Questionnaire.
4) Secondary Data:
It is been collected with the study of HR text books, company website, company records and also
the internet.
Sampling Method
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Airtech Private Limited
Here convenience sampling method will be adopted by considering random sample unit.
Tools and Techniques of data Collection
The tools and techniques used will be Questionnaire method for a larger and similar kind of
sample and personal interview method where ever necessary.
Benefits of the Study
This study helps the company to improve the performance of line managers.
It also indicates the training and development needs of the company.
The study helps to find out the strengths and weakness of the HR department’s staffing
procedure.
Helps the company to gain an idea about the performance appraisal system by the format
developed.
The company can continuously review and implement the performance appraisal system
and make it a continuous process.
It gives the researcher an opportunity to develop a performance appraisal system.
It provides scope to understand and interact with the employees and their working style.
Limitations of the study
1. Time constraint is the main limitation for the study because the time given to complete
the project was about 2 months, which was concurrent with the regular classes and
academic studies.
2. Confidential nature of certain aspects that would not be divulged for the study.
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Airtech Private Limited
Analysis
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Airtech Private Limited
Performance Appraisal System at Airtech Private Ltd
The most important asset from which Airtech derived its true competitive strength is its
committed and talented workforce. The Management's belief in creating a working environment
where ability is the sole arbiter has paid rich dividends. The typical Airtech employee is a
talented professional, highly motivated and capable of working in a team to deliver results even
under the most challenging circumstances. This chapter deals with the process of the appraisal
system for the employees followed at Airtech Pvt Ltd.
At Airtech, the main objective of carrying out the appraisal was to enable systematic
identification of job-related strengths and weaknesses among individual employees and at the
same time to enable quick identification of process loopholes, if any, and also to help in evolving
precise benchmarks for employee evaluation. The appraisal was carried out in order to gain
insight into the employees' understanding of expectations and standards and also to help achieve
fair, decent and consistent reward outcomes.
Process involved
The following steps were involved in the process that was carried out in Airtech Pvt Ltd
1. Firstly, the organization chart was prepared in order to have an understanding of the various
departments of the organization, the team leaders of those departments and the members
who constitute each team/department.
2. Once the chart was prepared, the assignment of the task of reviewing each employee was
chalked out so as to know who is responsible for reviewing a particular employee and from
whom to obtain the feedback for review.
3. The Performance Appraisal forms already designed as per the organization's specifications
will be informed to the team leads and they were asked to review their team members based
on the feedback from respective managers.
4. The team leads then monitored each employee's job related performance, rated their
members on a scale of 1 to 5 for each criteria, each rating a representative as follows:
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Airtech Private Limited
1. "Needs Improvement"
2. "Below Expectations
3. "Meets Expectations"
4. "Exceeds Expectations"
5. "Exceptional"
The criteria and performance elements for the purpose of appraisal
were as follows:
Quality of wok Productivity
Technical Knowledge
Communication & Teamwork
Leadership & Project Management Skills
General Policies & Standards
5. The duly filled in appraisal forms signed by the supervisor/team lead, were received after
which an overall performance rating was given to each employee based on the ratings under each
criteria.
6. The review and award of ratings for the team leaders of all the departments was done by the
Managing Director of the Company.
7. The appraisal forms thus received from the team leaders were arranged department wise and
handed over to the Managing Director.
a. The Managing Director, on plodding through the appraisal forms arranged for a meeting with
each employee individually to discuss the evaluation and to understand the gap (if any)
between the objectives set forth by the employee for the year and his/her accomplishments
towards those objectives during the year.
Procedure for Performance Appraisal practiced in Airtech:
The workers are appraised by the following procedure:
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Airtech Private Limited
1. The workers are first assessed by the immediate in charge i.e. section in charge.
2. The workers are assessed based on their performance whole year, their behavior, their
behavior with the co-workers & their superiors & super supervisors.
3. Assistance is provided by the personnel department by providing the section in charge
with employee details like attendance record, punctuality, etc.
4. Recommendation for each appraisee's increment is mentioned by the section in charge.
5. After the assessment of the worker, the in charge discusses with the concerned HOD &
rate each worker based on the performance.
6. The performance of each worker is measured by the higher authorities & decision is
taken about how much increment the worker should get.
7. The appraisal data is kept confidential. The workers are not given feed back by the
appraiser directly.
8. The worker is given the appraise letter or memo through personnel department, in which
the areas where they have to improve is mentioned & are advised to improve further.
9. The workers who have worked hard are given increment & the one who has to improve
are trained & directed to work in effective manner.
10. The needs aroused by this system are transformed into a training programme.
In this organization, the workers are hardly given any opportunity to assess themselves. The
workers who work harder & give more than what the management expects are given more
increments & their work is appreciated. This motivates them to work still harder & give the
management the best. In turn it motivates other workers who lag behind, to work & improve to
receive more increments in future.
The workers are given increments for their performance i.e, monetary terms are given as
rewards.
Appraising Officers:
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Airtech Private Limited
The pattern for the appraisal of officers or Managerial/Supervisory staff is same as that of
the workers. Here assessment of the officers is done by the HOD's of the concerned
department.
The managers or officers are allowed for the self assessment at the end of review period.
The self assessment includes the factors like tasks completed / achievement, self rating,
reporting officers rating.
The officers are appraised based on the following dimensions like technical ability,
quality of work, interpersonal skills, approach to work, supervisory skills / Leadership
skills and also strengths and development areas are also highlighted and also
performance, self development, initiative, commitment, judgment, team work are also
considered while assessing.
After the assessment of officers and supervisors, the Works Manager held a discussion
with the Senior General Manager and decides the increments of each officer.
As officers and above employees are considered as the non-bargainable employees,
Officers are also given increments at the end of the year,
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Airtech Private Limited
The below given are some of the formats used by the Airtech Pvt Ltd. These are different
formats for managerial staff and trainees / Learners.
All the formats are as follows:
Points considered by the management before conduction of
Performance Appraisal System:
1. The management sees that the impartial appraisal is carried out in the organization by the
appraisers.
2. There should be clarity of roles and responsibilities of each employee working in the
organization to the appraisers.
3. The performance Appraisal system should be Activity Oriented and also the process of
doing work should be considered as important.
4. Performance Appraisal should interlink with Career plan.
5. Performance Appraisal should help in recognition and appreciation.
6. Performance Appraisal should not entertain the people who do politics.
7. The feedback of each employee should only consist of the areas where the improvement
is required.
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Airtech Private Limited
Benefits to the Company by conducting this system
1. The employees get motivated to work harder for the organization.
2. By conducting this system, the employees set personnel goals for themselves and also for
others i.e., it helps for self development.
3. To overcome the weaknesses, management can arrange training programme. This help to
improve the performance of the individual.
4. The performance reviews helps to take managerial decisions like promotions, transfers,
etc.
5. To judge effectiveness of the other human resource functions of the organization such as
recruitment, selection, training and development.
6. Helps to strengthen the relationship and communication between superior subordinate
and management of employees.
7. To judge the gap between the actual and desired performance.
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Airtech Private Limited
Interpretation
1. When is the performance appraisal conducted in the organization?
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Airtech Private Limited
Performance Appraisal
Particular
s Frequency
Percent
Valid Percen
tCumulative Percent
Once in a year
11 100.0 100.0 100.0
10
2
4
6
8
10
12
Performance Appraisal Conducted
once in a year
2. Which method is adopted in measuring the performance?
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Methods For Measuring
Particu
lars Frequency
Percent
Valid Percent
Cumulative
Percent180 degree appraisal
2 18.2 18.2 18.2
360 degree appraisal
1 9.1 9.1 27.3
self appraisal
5 45.5 45.5 72.7
others 3 27.3 27.3 100.0
Total 11 100.0 100.0
180 degree appraisal
360 degree appraisal
self appraisal others Total0
2
4
6
8
10
12
Methods for Measuring
Ratin
g
3. Had the company objectives been clearly communicated at the beginning?
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Communication
Particula
rs Frequency
Percent
Valid Percent
Cumulative
PercentYes 9 81.8 81.8 81.8
No 1 9.1 9.1 90.9
Not clearly Communicated
1 9.1 9.1 100.0
Total 11 100.0 100.0
yes NO Not clearly Communicated
Total0
2
4
6
8
10
12
Communication
Ratin
g
4. According to you, on which all criteria’s the performance appraisal system was conducted?
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Criteria
Particular
s Frequency
Percent
Valid Percent
Cumulative
PercentQuality of work
2 18.2 18.2 18.2
Productivity
2 18.2 18.2 36.4
Technical Knowledge
4 36.4 36.4 72.7
Communication & Team Work
1 9.1 9.1 81.8
General policies & Standards
2 18.2 18.2 100.0
Total 11 100.0 100.0
Quality
of work
Producti
vity
Tech
incal Knowled
ge
Communication &
Team
Work
Genera
l polici
es & St
andard
sTo
tal02468
1012
Criteria
Ratin
g
5. What was the Appraiser’s feedback about your performance?
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Feedback
Particula
rs Frequency
Percent
Valid Percent
Cumulative
PercentMeet expectation
8 72.7 72.7 72.7
Exceptionally Well
2 18.2 18.2 90.9
no communication
1 9.1 9.1 100.0
Total 11 100.0 100.0
Meet expectation Exceptionally Well
no commu Total0
2
4
6
8
10
12
Feedback
Ratin
g
6. In which area did the appraiser feel the need for improvement in you?
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Appraiser Improvement
Particular
s Frequency
Percent
Valid Percent
Cumulative
Percentquality of work
1 9.1 9.1 9.1
productivity
1 9.1 9.1 18.2
technical knowledge
4 36.4 36.4 54.5
Communication & team work
1 9.1 9.1 63.6
leadership & project management skills
1 9.1 9.1 72.7
General policies & standards
3 27.3 27.3 100.0
Total 11 100.0 100.0
quality
of work
producti
vity
technica
l knowled
ge
Communication &
team
work
leaders
hip & pro
ject m
anag
emen
t skil
ls
Genera
l polici
es & st
andard
sTo
tal02468
1012
Appraiser's Criteria
Frequency
7. According to you, which were the areas you felt that you should improve?
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Your Improvement
Particulars Freque
ncyPercent
Valid Percent
Cumulative
Percentquality of work
1 9.1 9.1 9.1
Technical Knowledge
4 36.4 36.4 45.5
communication & team work
2 18.2 18.2 63.6
leadership & project management skills
2 18.2 18.2 81.8
general polices & Standards
2 18.2 18.2 100.0
Total 11 100.0 100.0
quality
of work
Tech
nical K
nowledge
communica
tion & te
am w
ork
leaders
hip & pro
ject m
anag
emen
t skil
ls
genera
l police
s & St
andard
sTo
tal0
4
8
12
Individual Improvement
Ratin
g
8. Was there a two way communication in the appraisal process, in interview?
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Two Way Communication
Particul
ars Frequency
Percent
Valid Perce
nt
Cumulative
Percentyes 3 27.3 27.3 27.3
no 5 45.5 45.5 72.7
partially 3 27.3 27.3 100.0
Total 11 100.0 100.0
yes no partially Total0
2
4
6
8
10
12
Two Way Communication
Ratin
g
9. After appraisal, when there was felt a need for improvement, which method was undertaken to improve your performance?
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Need For Improvement
Particul
ars Frequency
Percent
Valid Perce
nt
Cumulative
PercentValid 1 9.1 9.1 9.1
counseling
1 9.1 9.1 18.2
training & Department
4 36.4 36.4 54.5
monetary increment
2 18.2 18.2 72.7
promotion
3 27.3 27.3 100.0
Total 11 100.0 100.0
counseling training & Department
monetary increment
promotion Total0
2
4
6
8
10
12
Need For Improvement
Ratin
g
10. Is transparency maintained in appraisal process?
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Transparency
Particular
s Frequency
Percent
Valid Percen
tCumulative Percent
yes 5 45.5 45.5 45.5
no 4 36.4 36.4 81.8
partially 2 18.2 18.2 100.0
Total 11 100.0 100.0
yes no partially Total0
2
4
6
8
10
12
Transparency
Ratin
g
11. After appraisal, did you feel any kind of improvement in your performance?
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Latter Improvement
Particul
ars Frequency
Percent
Valid Perce
nt
Cumulative
Percent valid 1 9.1 9.1 9.1
yes 9 81.8 81.8 90.9
no 1 9.1 9.1 100.0
Total 11 100.0 100.0
yes no Total0
2
4
6
8
10
12
Latter Improvement
Ratin
g
12. Are you satisfied by the method in which you underwent improvement?
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Satisfaction
Particul
ars Frequency
Percent
Valid Perce
nt
Cumulative
Percentyes 10 90.9 90.9 90.9
no 1 9.1 9.1 100.0
Total 11 100.0 100.0
yes no Total0
2
4
6
8
10
12
Satisfaction
Ratin
g
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Findings
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Following are the findings ascertained from the interpretation of the
study of Performance Appraisal System
Performance Appraisal System at Airtech is conducted once in a year.
As per the interpretation, self appraisal is carried along with 900 and 1800
Appraisal system. Majority of the people are not clear about which system is
followed to appraise them.
Around 80% of the appraisee’s are clear about the objectives they have to
achieve. That is out of 11, 9 appraisee are clear about the objectives.
It was found that approximately 35% of the appraisee felt that technical
knowledge was the criteria for performance appraisal to be conducted and the rest
felt it was quality of work, general standards & policies, on leadership and project
management skills, Productivity communication and team work.
The employees feel they need to focus only on those criteria’s which is needed by
their job, but in actual they have to be well known about all the criteria.
Out of all, 72% of the people met the expectations of the appraiser, and 18% did
exceptionally well.
The appraiser felt that the employees have to know more about General policies
and Standards and also about some technical aspects.
Out of 11, 36% of them felt that they have to improve their technical knowledge,
and the rest felt they need to work on leadership and project management skills,
quality of work, general standards & policies.
Many appraisee lack the knowledge on General policies and standards.
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Of 11, 5 felt there was no two way communication system in the appraisal
process, 3 felt there was a two way communication system and the rest 3 had a
partial opinion.
For improvement in the present skill set, 4 appraisee underwent training, 3 got
promotion, 2 got a monetary increment and 1 underwent counseling.
In the matter of transparency, 5 of them felt the system was transparent, 4 of them
felt it was not transparent, and one was partial about the transparency.
After performance appraisal system was complete, 80% of them felt an
improvement in their performance.
Out of 11, 10 are positive towards the system and are satisfied with the appraisal
system carried out in the organization.
One of the appraisee suggested more transparency in the Performance Appraisal
System of the firm.
From the study of the performance appraisal system of the company, as described
by the HR Manager, the company follows 1800 appraisal system.
There is also Self Appraisal carried out in the process.
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Recommendations
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On the basis of the study conducted, by the input of some recommendations the performance
appraisal system can be even more effective. Some of the recommendations are:
The employees at Airtech are not aware of the existing Performance Appraisal System. It
creates an ambiguity in employees about the basis on which they are judged. Knowing
the Appraisal system would help them know about the right criteria of appraisal, makes
their work more focused and helps them to connect their individual goals to the
organization goals.
The company can communicate the importance and process of Appraisal by conducting a
meeting. And once the objectives are communicated, there must be periodic review
sessions so that it keeps the employees focused and also gives a chance for improvement.
Most of the employees have felt the need of technical training and knowledge updating
on General policies and standards. Providing them the above mentioned requirements
will increase their productivity and the employees will be motivated to work more.
Technical training can be provided by organizing training programs where the experts
address and educate the employees.
There is also a need of knowledge updating on General policies and standards. A start can
be made by hanging the frames of company’s vision, mission, policies and objectives, so
that the employees read it daily and be motivated to work. It also creates a connection
between the company’s and individual goals.
The performance appraisal is conducted once in a year. As it is found that the employees
lack clearance of objectives, and in mean time they lose focus, hence to educate and
review them, there has to be a check on the progress of the employees, until everyone is
clear about the connectivity between their personal and organization goals.
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Though self appraisal is conducted, the self appraisal form has to be designed more
specific and in more detail so that it takes out the maximum info from the appraisee and it
results in clear recognition of needs, provides details about their achievements and their
requirements. There has to be a right tool of measuring the self appraisal method.
The present system of appraisal followed is 1800 appraisal system; the company would be
beneficial if it adopts 3600 appraisal system, as it considers everyone including peers, and
colleagues.
3600 appraisal also helps to evaluate subjective areas like Team work, Leadership etc. it
provides with more information as the subordinates and superiors as well as the people
working under them contribute to the process. It gives a better dimension of study.
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Conclusion
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Performance appraisal can be viewed as a process of assessing staff performance for the
purpose of making judgment about staff that leads to decisions about hiring, firing,
training, counseling, promotion etc.
Performance appraisal should also be viewed as a system of highly interactive process
which involves determining job expectations, preparing job descriptions, selecting
appraisal criteria, developing tools and procedures, collecting and interpreting the results.
The appraisal system needs up gradation and also the employees have to be more serious
about the appraisal process as it decides the training and development needs, promotions
and also helps to recognize the potential of employees.
A well prepared and well conducted performance appraisal process results in unbiased
results and also provides the Managers with specific and detailed information. It also
helps in improvement and increases the overall efficiency and productivity of the
employees and hence results in the growth of the company.
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Annexure
Questionnaire
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Dear Sir/Mam,
The data provided by you will help me to assess the current and potential performance programs. Your individual response will be used to identify the performance appraisal system at Airtech Private Ltd, Dharwad. Your responses will be kept confidential.
If others then please specify: _________________________
Had the company objectives been clearly communicated at the beginning?
Yes ( )
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No ( )Not clearly communicated ( )
According to you, on which all criteria’s the performance appraisal system was conducted?
a) Quality of work ( )b) Productivity ( )c) Technical knowledge ( )d) Communication and team work ( )e) Leadership and project management skills ( )f) General policies and standards ( )
If others, please specify: _____________________________
What was the Appraiser’s feedback about your performance?
a) Below expectationsb) Meet expectationsc) Exceptionally well
Others: _____________________
In which area did the appraiser feel the need for improvement in you?
a) Quality of work ( )b) Productivity ( )c) Technical knowledge ( )d) Communication and team work ( )e) Leadership and project management skills ( )f) General policies and standards ( )
If others, please specify: ____________________________
According to you, which were the areas you felt that you should improve?
a) Quality of work ( )
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b) Productivity ( )c) Technical knowledge ( )d) Communication and team work ( )e) Leadership and project management skills ( )f) General policies and standards ( )
If others, please specify: ____________________________
Was there a two way communication in the appraisal process, in interview?
Yes ( )No ( )Partially ( )
After appraisal, when there was felt a need for improvement, which method was undertaken to improve your performance?
a) Counselingb) Training & Developmentc) Monetary incrementd) Promotion