Dissertation Report Title of the Dissertation Report “PERFORMANCE APPRAISAL” AT JINDAL BROTHERS PVT.LTD Submitted in partial fulfillment of requirements for the award of the degree of Masters in Business Administration Under Guidance of: <Guide’s Name> Submitted by: <Student name>
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Dissertation Report
Title of the Dissertation Report
“PERFORMANCE APPRAISAL”
AT
JINDAL BROTHERS PVT.LTD
Submitted in partial fulfillment of requirements for
the award of the degree of Masters in Business
Administration
Under Guidance of: <Guide’s Name>
Submitted by: <Student name>
<SMU roll no.>
<Name of the student>
<Address of the University>
Declaration
I,Deepika Saraswat having Roll No.520922764 of MBA Semester 4 of Sikkim
Manipal University hereby declare that the project entitled Performance
Appraisal At Jindal Brothers Pvt .Ltd. is an original work and the same has not
been submitted to any other institute for award of any other degree. The interim
report was presented to the guide on 30TH April,2011. The feasible suggestions
have been duly incorporated in consultation with the guide.
Signature of the candidate
(Deepika Saraswat)
Counter signed
<Guide Name>
Acknowledgement:
I would like to express my sincere gratitude to the people who have directly or
indirectly helped me throughout in the successful completion of my project report
on “STUDY OF PERFORMANCE APPRAISAL at “JINDAL BROTHERS
PVT. LTD” in GURGAON.
I take this opportunity to express my deep sense of gratitude and whole hearted
thanks to MR. TAPAS RANJAN (HEAD HR) for his valuable guidance and for
giving me this opportunity to complete my training in his organization, and also I
thank him for sharing his experiences which would prove as a great lesson in my
future professional life
I would like to thanks MR.PRASHANT CHOUBEY, MR.SUBODH SINGH &
MR SARANG KANCHAN for their valuable guidance and also giving me
effective direction and encouragement throughout the training.
I take this opportunity to thank my project guide PROFESSOR.WADHWA who
has seen me through all the stages of the project. I would like to express my
gratitude to him for his timely advice and Guided as per requirement. And also I
would like to thank PROFESSOR S.C.GHOSH for helping me whenever I needed.
Above all I thank GOD, Almighty for the immense wishes and blessings that gave
me motivation and confidence to complete this project on time
(DEEPIKA SARASWAT)
TABLE OF CONTENTS
Title Page No.
1. Chapter I
Acknowledgement 3
Profile of the Project Guide 4-5
Executive Summary 6
2. Chapter II
Company profile 7-15
Scope & Objective 16
3. Chapter III
Research methodology 17-18
4. Chapter IV
Performance management 19-33
5. Chapter V
Data analysis 34-55
6. Chapter VI
Findings 56
7. Chapter VII
Recommendations 57
8. Chapter VIII
Limitations 58
9. Chapter IX
Bibliography 59
10. Chapter X
Appendix 60-71
EXECUTIVE SUMMARY
This project report is a review based on theory as well as the industry outlook of performance appraisal
system of the organization.
The report starts with the Introduction and Literature Review of performance appraisal system that
outlines its history, definitions, purposes, types, process, methods, appraiser, parameters of evaluation
and the essentials of an effective appraisal system.
Further the performance appraisal system of Jindal Brothers Pvt.Ltd.company, collected through various
primary and secondary sources have been included in the report which gives a fair idea of the kind of
appraisal system being followed across various corporates.
Last, the conclusions and references has been mentioned.
INTRODUCTION
PERFORMANCE APPRAISAL
Performance appraisal may be defined as a structured formal interaction between a subordinate
and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in
which the work performance of the subordinate is examined and discussed, with a view to
identifying weaknesses and strengths as well as opportunities for improvement and skills
development. Performance appraisal, also known as employee appraisal, is a method by which
the job performance of an employee is evaluated (generally in terms of quality, quantity, cost and
time). Performance appraisal is a part of career development.
Performance appraisals are regular reviews of employee performance within
organizations.Generally, the aims of a performance appraisal are to:
Give feedback on performance to employees.
Identify employee training needs.
Document criteria used to allocate organizational rewards.
To identify the technique of Performance Appraisal followed in Jindal Brothers Pvt. Ltd.
To study how the employees are rated against these parameters
To identify how the performance of the employees is improved and enhanced
To provide suggestions & recommendations to improve their Performance Appraisal
REASONS FOR CHOSSING TOPIC:-
RESEARCH METHODOLOGY
In order to accomplish the objectives of the study, it is essential to articulate the manner in which
it is to be conducted, i.e., the research process is to be carried-out in a certain framework. The
research methodology, which follows, is the backbone of the study.
Data Collection Sources
Research work was done from two sources: -
(1) Primary data
(2) Secondary data
Primary data was collected by questionnaire and interview in the organizations. The
questionnaire comprised of closed and attitude questions. The opinion on existing Performance
Appraisal practices and their affectivity were collected through questionnaire which was
circulated to all the employees at all levels and the results have been analysed on the basis of
agree and disagree. The methodology for collection of data also included interviews and
discussion with the top management of the organization.
Secondary data: It was collected by reviewing different literatures, from published books,
management journals, articles published by the other researchers on 360 Degree Appraisal.
Sampling:
The total sample size for this project was 4 HR people at Jindal Brothers.
The information collected through above methods has been tabulated, analysed and interpreted.
Finally an overall assessment of the contribution of top management has been made towards
improving the effectiveness of the organization.
TYPES OF RESEARCH
Research methodology is a way to systematic solve the Research Problem. It is a procedure,
which is followed step by step to solve a particular research problem.
There are basically four types of researches:
1 EXPLORATIVE RESEARCH
2 DESCRIPTIVE RESEARCH
3 DIAGNOSTIC RESEARCH
4 HYPOTHESIS TESTING RESEARCH
Explorative Research:- To gain familiarity with phenomenon or to achieve an insight into it.
Descriptive Research:-To poetry accurately the characteristics of the particular individual
situation or a group.
Diagnostic Research:-To determine the frequency with which something occurs or with which
it is associated with something else.
Hypothesis Testing Research:-To test a hypothesis of casual relationship between variables.
The present project is Descriptive cum Explorative in nature. It is done to poetry accurately
the characteristics of a particular individual situation or a group. The major purpose of the
descriptive research is the description of the state of the affairs as it exits at resent. The main
characteristics of this method are that the researcher has no control over the variables; he can
only report what has happened or what is happening.
LITERATURE REVIEW
Organizations exist to achieve goals. Goals are only met when individual employees efforts
matches with policy of the organization and thus bringing out success and effectiveness. The
assessment of how successful employees have been at meeting their individual goals therefore
becomes a critical part of HRM and here comes Performance Appraisal System.
Performance appraisal is an important component of the information and control system. In
today’s flexible organizations, performance evaluation provides an important way for managers
to clarify performance goals and standards and to enhance future individual performance. Thus
the purpose of performance appraisal is to improve the organization’s performance through the
enhanced performance of individuals.
The performance appraisal system:
Is an organizational necessity
Is based on well defined objective criteria
Is based on careful job analysis
Uses only job related criteria
Is supported by adequate studies
Is applied by trained qualified raters
Is applied objectively throughout the organization
Can be shown non discriminatory as defined by law
PERFORMANCE APPRAISAL AND MANAGEMENT,
Journal of Performance Appraisal Techniques November 4,2001-Vol.1,No.4pp.418 By Fletcher CPerformance appraisal has widened as a concept and as a set of practices and in the form of performance management has become part of a more strategic approach to integrating HR activities and business policies. As a result of this, the research on the subject has moved beyond the limited confines of measurement issues and accuracy of performance ratings and has begun to focus more of social and motivational aspects of appraisal. This article identifies and discusses a number of themes and trends that together make up the developing research agenda for this field. It breaks these down in terms of the nature of appraisal and the context in which it operates. The former is considered in terms of contemporary thinking on the content of appraisal (contextual performance, goal orientation and self awareness) and the process of appraisal (appraiser–appraisee interaction, and multi-source feedback). The discussion of the context of appraisal concentrates on cultural differences and the impact of new technology.
Performance Appraisal as Effective Management or Deadly Management Disease Journal of Performance Appraisal Management Jan1,2005- Vol.80, Pages18 by Gregory H. Dobbins
Understanding person and system sources of work variation is fundamental to performance appraisal. Two divergent perspectives on this issue, the traditional human resource management view and the statistical process control view (Deming, 1986), are contrasted. Two studies are reported that investigate two specific questions that arise from a broader view of the appraisal
process. Results indicate that managers and subordinates believe that typical poor performance has different causes and that actual productivity levels far outweigh person or system sources of performance variance in appraisal judgments.
A Contingency Approach to Appraisal Satisfaction Journal of Performance Appraisal Approaches,July2009,Vol.49,Pages65 by Gregory H. Dobbins
The present study explored the moderating effects of organizational variables on the appraisal characteristic-appraisal satisfaction relationship. Analyses indicated that the appraisal characteristics of action plans, frequency, and rater training were more positively related to appraisal satisfaction when subordinates experienced role conflict, were not closely monitored, and supervisors had a large span of control. The results provide substantial support for conceptualizing appraisal satisfaction as a contingent function of both appraisal characteristics and organizational variables. Implications of the findings for the design of appraisal systems, appraisal effectiveness, and future research are discussed.
Differential Performance Appraisal Criteria Journal of Performance Appraisal Criteria,Oct2010,Vol.18, pages 72 by Taylor Cox
Performance appraisal ratings of 125 first-level managers were analyzed to investigate the degree to which the criteria used to evaluate the overall job performance of black managers differs from that used to evaluate white managers. The performance appraisal form included items that measured both the social behavior dimension and task/goal accomplishment dimension of job performance. The appraisal ratings of both groups on each dimension were correlated with measures of overall job performance and promote ability. Results indicated that social behavior factors are more highly correlated with the overall job performance of black ratees than for white ratees. Implications of these results for both black managers and organizations are discussed.
A Restatement of the Satisfaction Journal of Performance Hypothesis,Vol.59,Sept 2010,Pages 45 by Dennis W. Organ,This article reviews recent evidence in support of Organ’s (1977) argument that satisfaction more generally correlates with organizational prosaically or citizenship-type behaviors than with traditional productivity or in-role performance. An attempt is then made to interpret just what it is in satisfaction measures that provides this correlation, leading to the suggestion that fairness cognitions comprise the major factor. Implications of this interpretation for theory, research, and management practice are offered.
ANALYSIS & INTERPRETATION
This chapter deals in tabular presentation results and their analysis for the purpose of easy
reading the section has been divided into two parts.
* Tabular form of Response
* Inference
* Remarks on each question
1. In your company, the key competencies required for each job are already identified?
Response Category No. of responses Percentage
Very true 0 0
True 4 8
Partly true 9 18
Not true 37 74
No. of re-
sponses
Percentage
01020304050607080
Very true
True
Partly true
Not true
Inference: Most of the respondents (74%) found the above statement to be ‘Not True”. This was
followed by 18% of the respondents feeling that this statement was ‘Partly True’ for their
organization. Only 8% of the people found it to be ‘True’.
Remarks: Although the appraise does not have a clear understanding of what is expected of him
at the beginning of the year (Inference I), both he and the appraiser know what his job is all
about. This also shows that although an employee knows what his current to do to be rated
higher by the reporting officer. The responsiveness in category of Partly True and Not True may
be due to the face that job content in Jindal Brothers is flexible and not well defined and some
people find it difficult to define their jobs. However, most of the people have a general idea of
the scope of their jobs.
2. There are mechanisms that help employees develop their potential for the next round of job?
Response Category No. of responses Percentage
Very true 0 0
True 5 10
Partly true 25 50
Not true 20 40
No. of re-
sponses
Percentage
0
10
20
30
40
50
Very true
True
Partly true
Not true
Inference: Quite a large number of respondents (40%) shared the view that the appraisal system
did not give a clear understanding of all appraisals, job to both appraiser and appraise by saying
that it was ‘Not True’. Only 50% and 10% of the respondents felt that the statement was ‘True’
and ‘Partly True’ respectively.
Remarks: Although the appraise does not have a clear understanding of what is expected of him
at the beginning of the year (Inference I), both appraisee and the appraiser know what his job is
all about. This also shows that although an employee knows what his current to do to be rated
higher by the reporting officer. The responsiveness in category of Partly True and Not True may
be due to the face that job content in Jindal Brothers is flexible and not well defined and most
people find it difficult to define their jobs. However, most of the people have a vague idea of the
scope of their jobs.
3. Employees regularly receive feedback about their potential for higher level jobs?
Response Category No. of responses Percentage
Very true 0 0
True 8 16
Partly true 7 14
Not true 35 70
No. of re-
sponses
Percentage
0
10
20
30
40
50
60
70
Very true
True
Partly true
Not true
Inference: 70% of the respondents agreed that the appraisal system did not helped them to know
their potential to perform at higher levels. Plan their performance well by saying that it was ‘Not
True’. Only 16% and 14% people felt that this statement was ‘True’ and ‘Partly True’.
Remarks: The above inference shows that the PA system in Jindal Brothers does not give
feedback about ‘planning for performance’ to its employees. It helps anticipating work needs in
order to arrange work in logical order. It also helps in devising efficient methods to attain pre-
determined plans. Again due to flexibility in job content, some people may have found problems
in planning their performance systematically.
4. Job rotation is practiced widely to help people develop their potential in new areas?
Response Category No. of responses Percentage
Very true 7 14
True 18 36
Partly true 25 50
Not true 0 0
No. of re-
sponses
Percentage
0
10
20
30
40
50
Very true
True
Partly true
Not true
Inference: About 50% of the respondents felt that the above statement was ‘Partly True’. It was
followed by 36% people feeling that it was ‘True’ with 14% believing that it was ‘Very True’.
Remarks: Job rotation is the most economical way of providing training to the employees. It
facilitates both organization and individual development. Job rotation gives an individual hand
on experience for carrying out various different functional activities. The performance appraisal
system should include this process in the training need identification performance.
5. The appraisal system provides an opportunity for self-review and reflection?
Response Category No. of Responses Percentage
Very true 0 0
True 0 0
Partly true 13 26
Not true 37 74
No. of Re-
sponses
Percentage
01020304050607080
Very true
True
Partly true
Not true
Inference : There is a general agreement on then fact that the PA system in Jindal Brothers does
provide ample opportunity for self-review and reflection. 74% of the people felt that
it was ‘Partly True’ with 26% agreeing.
Remarks : The presence of self-appraisal procedure in the PA appraisal system is an important
reason for the above inference. The self appraisal includes questions on major
achievements, constraints in performance, type of training required, tasks/activities
undertaken successfully during the year, problems faced etc. It also includes
suggestions on making the job interesting and challenging and plans to improve
effectiveness. Due to this fact, employees may have felt that they were participating
actively in their own appraisal by self -review and reflection on various issues.
6. Promotions are based strictly on need rather than to reward individuals?
Response Category No. of Responses Percentage
Very true 0 0
True 4 8
Partly true 25 50
Not true 21 42
No. of Re-
sponses
Percentage
0
10
20
30
40
50
Very true
True
Partly true
Not true
Inference : 50% of the respondents believe that the above statement is ‘Partly
True’ This was closely followed by 42% of the respondents rating it as
‘Not True’ and 8% of the respondents feeling that it was ‘True’.
Remarks : The performance appraisal is completely need based the organization
recognizes and promotes high achievers only if there are vacancies
available in the organization. This has a negative impact on people who
are not rewarded and promoted duly for their good performance. There
should be a system of rewarding employees either in monetary terms or
in terms of recognition.
7. The appraisal system gives each appraisee an idea of what is expected of him next year?
Response Category No. of Responses Percentage
Very true 0 0
True 10 20
Partly true 26 52
Not true 14 28
No. of Re-
sponses
Percentage
0
10
20
30
40
50
60
Very true
True
Partly true
Not true
Inference : 52% of the respondents felt that the above statement was ‘Partly
True’. This was followed by 28% and 20% of the respondents
feeling that it was ‘Not True’ and ‘True’ respectively.
Remarks : Each employee needs to have an idea as to what accountabilities
will he have if his appraisal is given a good remark for working at
higher levels. The appraisee should know his potential, which
will go a long way in his higher level jobs.
8. It is designed to aid the appraisee and appraiser jointly understand the formers job?
Response Category No. of Responses Percentage
Very true 0 0
True 14 28
Partly true 22 44
Not true 14 28
No. of Re-
sponses
Percentage
05
1015202530354045
Very true
True
Partly true
Not true
Inference : There was a mixed response to the given statement. 44% of the responses
consisted of “Partly True’ ratings. 28% respondents believed that this was
‘Not True’ whereas 28% believed that this was ‘True’.
Remarks : The above inference implies that Jindal Brother’s PA system does not score
well in the aspect of transparency in communicating an employee’s
performance through performance review and discussion. The discussions
between appraisal processes. The interaction on self appraisals is not a
common feature and is only done on certain occasions (exceptionally good or
bad performance etc.) The presence of 44% responses as “True” may be due
to good relationship and open communication shared by some of the
appraiser appraise pairs.
9. The performance appraisal provides an opportunity for self review and reflection?
Response Category No. of Responses Percentage
very true 0 0
true 2 4
partly true 25 50
not true 23 46
No. of Re-
sponses
Percentage
0
10
20
30
40
50
very true
true
partly true
not true
Inference : Most of the respondents agreed that the appraisal system catered to their
development needs (50% believed that it was “Partly True”) and it was very
closely followed by 46% saying it was “Not True”. There were 4% cases,
which believed that it was ‘True’.
Remarks : Although the inference indicates that the PA system allowed mutuality, trust
and open communication between superior and subordinates, there may be
chances of biases in employees while rating this statement. The answers may
have varied depending on proximity etc.
10. The appraisal procedure allows the appraisee to express his developmental needs?
Response Category No. of Responses Percentage
very true 0 0
True 8 16
partly true 16 32
not true 26 52
No. of Re-
sponses
Percentage
0
10
20
30
40
50
60
very true
True
partly true
not true
Inference : The most common response on above statement was an astounding ‘Not
True’ with 52% people agreeing that the PA system was free of any biases. It
was followed by 32% saying that it was ‘True’ and 16% saying that it was
‘Partly True’.
Remarks : The above inference implies that people are satisfied with the PA system in
Jindal Brothers and believe that it provides scope for developing their
potential. This may be due to the fact that the self appraised of the appraise
invites suggestions on job enrichment, training needs and steps to be taken to
improve individual’s effectiveness.
11. The system has scope to correct the biases of the assessor through a super review?
Response Category No. of Responses Percentage
very true 0 0
true 2 4
partly true 14 28
not true 34 68
No. of Re-
sponses
Percentage
0
10
20
30
40
50
60
70
very true
true
partly true
not true
Inference : 68% of the people rated the above statement as ‘Not True’ 28% believed it was
‘Partly True’ with 4% disagreeing by saying that it was ‘True’.
Remarks : A performance appraisal system, which is perceived as ‘bias -free’ by its
executives, is an achievement for the organization. In the PA system the
reporting officer appraises a section of people whereas the reviewing officer
appraises the performance of an entire department. also the reviewing officer is
the immediate superior of reporting officer. Any disagreement between the
assessments of an employee has to be duly discussed and recorded. Also, any
noticeable difference of opinion between self appraisal and appraisal by
reporting officer has to be accounted for. All the above factors help in correcting
the biases,. if any, of reporting officer.
12. The appraisal system provides for a frank discussion between appraiser and appraisee?
Response Category No. of Responses Percentage
very true 0 0
True 6 12
partly true 0 0
not true 44 88
No. of Re-
sponses
Percentage
0102030405060708090
very true
True
partly true
not true
Inference: An astounding 88% rated the above statement as not true with 12% that it was
true.
Remarks Although, most of the people felt that there was mutuality and trust between
appraiser and appraise, it may again depend on the proximity and relationship
shared by an employee and his/her boss. The ratings may be based, as the
employees may have felt that a negative answer may adversely affect them. The
reason behind this conclusion is that a low score on extent of communication and
discussion between appraisers and appraise and high score on mutuality and trust
give a contradictory view.
13. The procedure allows for the communication of CEO‘s goal to the workforce?
Response Category No. of Responses Percentage
very true 0 0
true 2 4
partly true 10 20
not true 38 76
No. of Re-
sponses
Percentage
01020304050607080
very true
true
partly true
not true
Inference : The typical response in this case was ‘Not True’, by 76% of the respondents.
20% rated the above statement as ‘Partly True’ and 4% as ‘True’.
Remarks : Even if half of the respondents gave a mid-way answer, presence of 44%
‘Slightly True’ answers give a negative picture of the above statement. This
implies that the business goals are not well integrated with individual goals.
There is no direct linkage between the management plans and evaluation
criteria. This may be due to the fact that either the business goals are not
quantified enough or the management is not quick enough to communicate its
plans to the staff below.
14. The appraisal system brings out the training needs of the employees.
Response Category No. of Responses Percentage
very true 0 0
True 3 6
partly true 22 44
not true 25 50
No. of Re-
sponses
Percentage
0
10
20
30
40
50
very true
True
partly true
not true
Inference : 50% of the respondents believed the above statement to be ‘Not True’ closely
followed by 44% people believing it to be ‘Partly True’. Only 6% believed it
to be ‘True’.
Remarks : A few people get the training related to their competencies skills that needs to
be enhanced for successful completion of their work. most of the people do
not get adequate training according to changes in their job description i.e.
responsibilities and KRAS.
15. The performance appraisal system clarifies the career prospects, aspirations and intentions?
Response Category No. of Responses Percentage
very true 0 0
true 5 10
partly true 40 80
not true 40 80
No. of Re-
sponses
Percentage
01020304050607080
very true
true
partly true
not true
Inference : The typical response (80%) for the above statement was ‘Not True’ 10%
employees believed it to be ‘Partly True’ with an equal 10% employees
believing if to be ‘Not True’.
Remarks : The general picture drawn from the above inference is that all the
employees are not clear as to what the PA system is all about and what is
the reason behind its existence. This shows that PA system has acquired an
important status in Jindal Brothers with all employees acknowledging its
presence and essence.
16. The appraisal system provides a rational basis for salary recommendations?
Response Category No. of Responses Percentage
very true 0 0
True 8 16
partly true 14 28
not true 28 56
No. of Re-
sponses
Percentage
0
10
20
30
40
50
60
very true
True
partly true
not true
Inference : 56% of the respondents felt that the above statement was ‘Not True’. 28%
responses included ‘Partly True’ ratings whereas 16% responses included
‘True’ ratings.
Remarks : The employees do not want a fixed increment for their great performance. The
company should make recommendations related to salary on the basis of
regular performance feedback about every employee since the frequency of
performance measurement varies from department to department, it is difficult
to carry out this work smoothly.
17. The company relates reward to your performance?
Response Category No. of Responses Percentage
very true 0 0
True 10 20
partly true 4 5
Not true 36 72
No. of Re-
sponses
Percentage
01020304050607080
very true
true
partly true
not true
Inference :` Most of the respondents (72%) felt that the above statement was ‘Not True’.
20% believed it to be ‘True’ whereas a mere 8% felt that it was ‘partly True’.
Remarks : The company uses the reward system as a motivating force for enhancing the
performance of its employees. Rewards should be promptly given to high
achievers in terms of increment, promotions, increased job responsibilities etc.
for their accomplishment.
18. What kind of an appraisal system will bring out the best of an employee?
Response Category No. of Responses Percentage
appraisal by all superiors 10 20
appraisal by immediate superior
5 10
appraisal by reference team 15 30
appraisal by reference team and self.
20 40
No. of Re-
sponses
Percentage
05
10152025303540
appraisal by all superiors
appraisal by im-mediate superior
appraisal by reference team
appraisal by reference team and self.
Remarks : This shows that the relationship between appraiser and appraise, in Jindal
Brothers, with respect to planning the performance is quite good. The
subordinate in planning his performance. The appraiser helps the appraise
in testing the soundness of his goals as well as of his plans for achieving
them. This implies that there is active participation of both appraiser and
appraise in performance planning. The reason behind ‘Not True’ answer
may be due to the fact that many jobs in Jindal Brothers are not well
defined and therefore an elaborate planning on them is not done.
FINDINGS
Organization Structure and Design
1- Jindal Brothers is a young, dynamic organization and is going strong on the stock market.
2- The company is well aware of the dynamic environment of software, it is operating and
in order to keep it with the pace of the environment it believes in constant up gradation of
courses. Organization structure and design of the company is such that it supports this
change.
3- Jindal Brothers has a matrix kind of a structure wherein it takes the form of combination
of structures. Matrix structures are adopted became there is more than one factor around
which the structure can be built.
4- This matrix structure at Jindal Brothers improves the quality of decision-making where
interest conflicts arise and direct contacts replaces bureaucracy
5- . This increases the motivation of the managers and development of wider involvement in
strategies. Although at times the company faces high risk of dilution of priorities became
e people do not know who is responsible for what.
6- An organization is a network of authority, responsibility and relationships. Different
organization structure consists of different type of relationships.
Line Organization
It is the traditional type of organization. It refers to a direct chain of command from top to
bottom. In the line organization the lines of direction are straight and vertical. Authority and
responsibility flow vertically in an unbroken straight line from one level to another. Every
superior has complete command over his subordinate and every subordinate has to report his
work to only the senior or to the level above his own level.
Staff Organization Staff may be of three types:
1.)Personal Staff:
It consists of personal assistants attached to individual line executives. Personal staff is
employed to carry out those responsibilities of an executive, which he cannot or does not want to
delegate to others.
2.)Specialized Staff:
It consists of specialists in different functional areas e.g. personnel, accounting, legal and public
relations etc. A specialized staff department serves as a fountainhead of expertise for the entire
concern.
3.)General Staff:
IT INCLUDES A GROUP OF EXPERTS ATTACHED TO THE CENTRAL
OFFICE AND IT PROVIDES GENERAL ADVICE MOSTLY TO THE TOP
MANAGEMENT.
Complaint Handling As part of the process for capturing customer complaints and acting on
them, Jindal Brothers has procedures that ensure that each customer complaint is captured,
recorded and reported as part of a formal review system. The process includes related activities
such as escalation of a problem, tracking each complaint to closure, and creating new procedures
(or modifying existing ones) to prevent similar problems from repeating in the future.
Employee Excellence At Jindal Brothers they believe that they can build a world class
structures. Their vision document, which drives each employee as well as the organization itself,
reflects Jindal Brother's commitment towards customers and employees. Starting from the
recruitment process and culminating in annual reviews, Jindal Brothers has quality processes for
tracking and maintaining quality standards.
Recruitment For recruitment, Jindal Brothers administers various tests to the applicant. These
include aptitude tests, IQ tests, management tests, and personality tests. Each of the tests captures
different information about the individual so that Jindal Brothers can ensure that the person is
appropriate for the job and will fit into the company culture.
Goal Setting Before starting on the job, employees discuss their role and responsibilities with
their supervisors. This results in the setting of goals and objectives for each individual for the
coming year. This process clarifies the expectations from each individual during the year. Each
employee is expected to monitor his/her goals by filling in a focus report every month, which is
then discussed with the supervisor.
Training
Jindal Brothers recognizes the fact that the skills of employees need to be upgraded constantly.
Jindal Brothers trains each and every employee continually through the year. In fact, Jindal
Brothers has one of the highest training days per employee in the world: each Jindal Brothers
employee receives over 11 days of training each year. Jindal Brothers has an employee training
division which conducts in-home e, residential training programs exclusively for Jindal Brothers
employees.
PERFORMANCE APPRAISAL AT JINDAL BROTHERS
While on the job, performance reviews of every employee are done every quarter. The reviews
are done with a view to helping the individual excel at his/her workplace. In case there are any
training requirements, these are noted and acted upon in the coming quarter. Also, the goals and
objectives for the employee are re-visited for
The performance appraisal mechanism is carried out at Jindal Brothers for promotional purposes
These are done so as to motivate the employee and improve his performance level. The method
is as follows:
a) Establishment of performance standards with the employees
b) The goals are set mutually as per measurable standards.
c) The actual performance is hence measured.
d) After measuring of the actual performance, the same is compared with the standards set
e) The appraisal is then discussed with the employees.
f) And finally, if need arises corrective action is initiated. For this purpose the corrective action
is actually identified through brainstorming exercises initiated by the departmental heads at
all the Jindal Brothers. It is then measured as a tool to evaluate the past performances of the
employees.
Some of the methods used at Jindal Brothers are:
1. Key Performance Index
2. 360 Degree Feedback
3. Paired Comparisons
4. Behaviorally Anchored Rating Scale
1. KPI-Key Performance Index
It is based on the performance level of the employee generally classified on the basis of:
Targets achieved
Ratings through students’ feedback forms
Punctuality and regularity
Day to day performance
This is given after every module at the centers.
Thus we can observe that the appraisal system is not a biased one but based on performance and
productivity basis. All the respective heads of the employee together with the senior persons at
the center brainstorm and then give the promotion.
2. 360 Degree Feedback
This feedback system involves the participation of Top Management.
Thus the feedback given by these members at Jindal Brothers is considered under a holistic view
and then the employee is given a performance appraisal. This evaluation method involves 40%
feedback from the coworkers which says that the employee should not only maintain good
rapport with the senior or junior but majorly with the coworkers also.
3. Paired Comparisons
The evaluator compares all possible pairs of subordinates on their overall ability to do the job.
Due to the subjectivity of evaluating overall performance some managers me e a number of
different job related dimensions when comparing.
4. Behaviorally Anchored Rating Scale (BARS)
It is a sophisticated method of evaluating the employee based on the employee behavior. It is a
numerical scale that is anchored by the seniors of the organization at various centers. This is
highly confidential and the information is sent in sealed envelopes and opened only at the time of
the final evaluation. There is no further discussion regarding this scaling, thus it is not given
enough weightage.
SURVEY FINDINGS
In this section, basic data for a group of 100 employees from lower, middle, senior and top
managers is presented on various attributes of performance appraisal.
Frequency and frequency percent scores were computed for each of the groups of the entire
selected variable.
1. Finding through the Questionnaire
Through the questionnaire it was found that promotions were and known to most of the top and
senior management while middle and lower management were a bit not clear about it. This could
be attributed to the fact that senior and top management were more involved in decision making
and policy formulation than are the middle and lower management.
Same reason could be attributed to the fact that code 1 managers were absolutely clear of what
was expected out of them every year, whereas 50% senior management ware clear or partly clear
about the same and the about 20% of middle management were not clear about it and still
further, the 71% of lower management was not aware of what was expected out of them every
year.
85% of code 4 employees said that they could express their reason of failure. The responses of
50% of Middle Managers were bit favorable whereas 100% senior management also thought that
they did not get the opportunity to express their cause of failure. The 60% of top management
were portly able to express their cause of failure. This may be because the appraisal system is
more of less performance based and human factor is by and large overlook. Whereas, at the
lower levels of the organization, performance can be quantified, and the managers are made
accountable at the higher echelons the tasks are too complex and therefore cannot be assessed on
the basis of quantified performance and therefore the top and senior management believed that
the promotions are also for motivation whereas the attitude wanes as the level of hierarchy goes
up. This is probably because of the appraisal of performance based on the quantity or results. If
the employee’s output is good of better they get promotions and also get motivation to achieve
better performance. At the higher levels the results are more of subjective nature therefore
promotions does not accrue on the basis of quantified results only.
Most of the managers feel that the mechanism for potential appraisal is not adequate. This may
be, because the training programmers are also not developed.
As far as feedback is from superiors is concerned, most of the top and senior management were
of the view that they constantly receive feedback. This is because, they take decisions crucial to
the existence of the organization and therefore are closely watched and monitored as compared
to the employees in the lower & middle levels.
Again the top management felt that they with their superior decide about their job but 100% of
senior management did not feel the same at all. This is because again due to power centeredness
and power difference in the organization, being a tall organization the superior are not accessible
to their subordinate.
60% of lower management thought that their creativity was definitely not adequately recognized
whereas the top management believed that the organization encouraged creativity. This
highlights the gap of communication in the organization and differences in the perception of
culture in the organization by different grades of employee. 70% of lower management thought
that the system was not free from biases and same is felt by most of the middle, senior and top
management. This shows that human instincts and behaviors influence the performance appraisal
system.
60% of lower management was not clear about the goals and objectives of the organization. Most
of top management thought that they were clear or very clear, about the organization goals. This
is because, the power distance is extent and communication system of the organization is not
very effective. This also shows that transparency is lacking in the system.
70% of lower managers thought that the performance appraisal system did not identify their
training needs. 80% of senior managers also thought the same. But the view of top management
differed in the sense that they felt that the system helped them surface their training needs. The
reason being that the training programmes are not fully developed and are not constantly
evaluated in the organization. The top management felt that there was a scope of super review.
The senior management also felt a bit the same but lower and middle management keep
attending meetings and had already developed rapport with their superiors and so could easily
talk out their appraisal results whereas this is not so for lower and middle management. They are
not able to approach their senior easily and are therefore could not appeal for super-reviews.
60% of lower managers said that they do not get opportunity for self review and reflection. This
is because performance appraisal is lacking human touch to it. The appraisals are entirely based
on performances, overlooking the cause of successes and failures. The appraisal system thus
does not meet individual’s developmental needs and also does not contribute to employee’s job
satisfaction and moral development.
2. Findings from Observation and Discussions
The organization believed that self appraisal is the best for managers and above.
To improve interpersonal communication and behavior assessment by peers and subordinates is
essential.
The performance of the employees is not regularly monitor and the required feedback is provided
to the subordinates from time to time. The appraisals are conducted at fixed intervals. The
organization believes in using appraisal for rewarding and increments.
There was a neither formal nor informal discussion on job specification and tasks to be
accomplished for various departments.
There was no formal performance appraisal taking place till now in the organization. There fore,
there were no written records of such activity in the personal files of the employees. However
people were being appraised informally by the superiors and got promoted or incremented
accordingly.
It would not be wrong to say that interpersonal relations and personal biases (i.e. liking and
disliking influence the appraisals in the organization).The management is in the process of
restructuring and developing such policy in the organization.
Learning
1. Function of HR department in a manufacturing firm.
2. Solving hurdles in the process of appraisal
3.Steel manufacturing process.
4. Manpower required for the company.
5. Solving employees’ problems.
6. Organizational structure
RECOMMENDATIONS
1. To improve attendance there should be rewards for those employees who attains above
95% attendance.
2. There should be training sessions to improve team building.
3. There should be proper training for appraisal to the employees.
4. In the beginning of the year employee must know the performance standards on which
his/her performance will be judged in end of year.
5. More stress relieving packages should be offered to the mentally stressed staff.
6. Overtime should be taken care of at time of performance appraisal, which would motivate
the employees to perform better for longer hours.
7. Performance appraisal should after at proper span of time .
8. Performance appraisal should be done by expert person.
CONCLUSION
Performance appraisal is the process of reviewing employee performance vis-à-vis the set
expectations in a realistic manner, documenting the review, and delivering the review verbally in
a face-to-face meeting, to raise performance standards year over year through honest and
constructive feedback. In the process management expects to reinforce the employee’s strengths,
identify improvement areas so that one can work on them and also set stretched goals for the
coming year.
Effective performance management requires a good deal of face-to-face supervisor-employee
interaction. By knowing the subordinates, a supervisor can steer them onto a path of greater
productivity and optimized output. It is one of the most significant and indispensable tool for an
organization as it helps in getting to know the people who work for them. provides information,
which helps in taking important decisions for the development of an individual and the
organization.
SAMPLE QUESTIONNANIRE
I have undertaken a project on PERFORMANCE APPRAISAL SYSTEM. The information furnished by you will help knowing the effectiveness of the present appraisal and reward system and if need be designing of a new appraisal system. The data will be kept confidential and will be used for academic purpose only.
1. In your company, the key competencies required for each job are already identified.
a) Very true b) true
c) Partly true d) not true
2. There are mechanisms that help employees develop their potential for the next rung of job.
a) very true b)true
c) partly true d) not true
3. Employees regularly receive feedback about their potential for higher level jobs
a) very true b)true
c) partly true d) not true
4. Job rotation is practiced widely to help people develop their potential in new areas.
a) very true b)true
c) partly true d) not true
5. Your company’s promotion policies are clearly defined and shared with all employees.
a) very true b)true
c) partly true d) not true
6. Promotions are based strictly on need rather than to reward individuals?
a) very true b)true
c) partly true d) not true
7. The appraisal system gives each appraisee an idea of what is expected of him next year?
a) very true b)true
c) partly true d) not true
8. It is designed to aid the appraisee and appraisers jointly understand the former’s job?
a) very true b)true
c) partly true d) not true
9. The performance appraisal provides an opportunity for self review and reflection?
a) very true b)true
c) partly true d) not true
10. The appraisal procedure allows the appraisee to express his developmental needs?
a) very true b)true
c) partly true d) not true
11. The system has scope to correct the biases of the assessor through a super review?
a) very true b)true
c) partly true d) not true
12. The appraisal system provides for a frank discussion between appraiser and appraisee?
a) very true b)true
c) partly true d) not true
13. The procedure allows for the communication of CEO‘s goal to the workforce?
a) very true b)true
c) partly true d) not true
14. The appraisal system brings out the training needs of the employees.
a) very true b)true
c) partly true d) not true
15. The performance appraisal system clarifies the career prospects, aspirations and intentions.
a) very true b)true
c) partly true d) not true
16. The appraisal system provides a rational basis for salary recommendations.
a) very true b)true
c) partly true d) not true
17. The company relates reward to your performance.
a) very true b)true
c) partly true d) not true
18. What kind of an appraisal system will bring out the best of an employee?
a) appraisal by all superiors b) appraisal by immediate superior
c) appraisal by reference team c) appraisal by reference team and self.