Performance Appraisal Project

A PROJECT REPORT ON

PERFORMANCE APPRAISAL AT

SUBMITTED TO THE

(Biju Patnaik University of Technology In Partial Fulfillment of the Degree of Master in Business Administration)

BY

KIRTY RANJAN NAYAK Regd.No:-0906289022

UNDER THE GUIDANCE OF

EXTERNAL GUIDE: INTERNAL GUIDE:Mr. AKHTAR HOSSAIN Mrs. SONAM SUBHADARSHINIGENERAL MANAGER (HR), FACULTY (HR),ARSS TATBHUBANESWAR. BHUBANESWAR.

Trident Academy of Technology Bhubaneswar

INTERNAL GUIDE CERTIFICATE

Guide Name : Mrs. Sonam SubhadarshiniDesignation : Faculty (HR)

This to certify that the project work titled “PERFORMANCE

APPRAISAL AT ARSS, BHUBANESWAR” is a work of Kirty Ranjan Nayak

(Regd. No.0906289022) carried out in partial fulfillment of the requirements for

awarding the degree in Master in Business Administration in Trident Academy of

Technology under Biju Patnaik University of Technology (BPUT) during the

academic year 2009-2011.

Prof. Partha Sarathi Das Prof. J.K.JoshiHOD, MBA Director AcademicsTAT, BBSR TAT, BBSR

Mrs. Sonam SubhadarshiniFaculty in HR, TAT, BBSR

EXAMINER CERTIFICATE

This is to certify that this piece of work entitled “PERFORMANCE APPRAISAL AT

ARSS” Submitted on partial fulfillment for degree of MBA is a record of studies and

bonafied project work carried out by Kirty Ranjan Nayak, student of MBA

programme 2009-2011 of Trident Academy of Technology, Bhubaneswar.

I wish him all success in life.

INTERNAL EXAMINER EXTERNAL EXAMINER

DECLARATION

I, hereby declare that the report on summer internship training entitled

“PERFORMANCE APPRAISAL at ARSS” submitted by me is of my original

research work. It does not form part of any previous project work, dissertation, thesis, or

report submitted to this university earlier or any other university.

Place: Bhubaneswar KIRTY RANJAN NAYAK

Date: (Signature)

ACKNOWLEDGEMENT

It’s a privilege to be associated with “ARSS Infrastructure Projects Ltd”,

Orissa’s top brand Infrastructure Company. This acknowledgement is not only

the means of formality, but to me, it is a way by which I am getting the

opportunity to show the deep sense of gratitude and obligation to all the people

who have provided me with inspiration, guidance and help during the preparation

of the project. At the very outset, I would like to express my gratitude from

bottom of my heart to Mr. Akhtar Hossain General Manager (HR) ARSS for

giving me the opportunity to do my Summer Internship Project in this esteemed

organization.

I articulate my sincere gratitude to my project guide Mr. Akhtar Hossain,

General Manager (HR) ARSS Infrastructure Projects Ltd. who has spend his

valuable time and guided me throughout the training process in spite his busy

schedule, in shaping of my project. I am also thankful to Mr.A.K. Mishra,

(Senior HR Executive) ARSS and Mr.B.S. Biswal, (Junior HR Executive)

ARSS for guiding me throughout the project providing me with the required

information about Infrastructure.

I also like to thank Prof. J.K. Joshi, Director Academics, Trident Group of

Institutions who helped to provide me the opportunity to undergo my summer

Internship Project in ARSS Infrastructure Projects Ltd. I would also like to

express my indebtedness to my faculty guide Mrs. Sonam Subhadarshini,

Trident Academy of Technology who helped me in preceding my project work,

I am thankful to Head of the Department Prof. Partha Sarathi Das and other faculties

of my department. This ultimately resulted in successful completion of the project.

But last not the least I am thankful to my parents, friends and all well wishers for

blessing me for my success.

Kirty Ranjan NayakRegd.no.-0906289022

Trident Academy of TechnologyBhubaneswar

PREFACE On partial fulfillment of the master degree course in Business Administration in which

an internship programme has been incorporated in the curriculum, during which a study

has to be done in an organisation mainly to extract a practical knowledge and to learn

the application of theoritical knowledge in the real corporate world. The professional

training is an integral part of an MBA programme. It helps the students to understand

the practical aspects of managing business in much better ways.

As a part of my MBA programme at Trident Academy of Technology I was supposed

to work for a period of “45 days” or “six weeks”. I was required to undertake a detailed

study of “Performance Appraisal At ARSS” for employees as whole in human

resource department. This part of the MBA has helped me in applying my theoretical

knowledge into practical experience. The 45 days training process has helped me in

getting a sufficient knowledge of how the theories and theorems in various books are

applied in the real world.

ARSS only the renewed infrastructure unit in the state of Orissa, well-known for its rich

qualitative services. Today, ARSS engaged in Rail Works, Road Works, Bridge Works,

and Marine Works. So the services of ARSS are not only for the state, it also reaches

the outside of the state customers as well. The uniqueness in the services of ARSS is

one of the major qualitative aspects.

I conducted a research work at the ARSS Infrastructure Projects Ltd at

Bhubaneswar to get a thorough understanding of the system of “Performance

Appraisal” for the employees that the organization is following. As for the method of

data collection I collected some data directly from the primary sources like the

responses from the employees regarding the system was collected through the

questionnaires, the online appraisal form and the statistical data were collected directly

from the sources. And some other secondary sources collections were also used. For

example the company’s official website was used for some deriving some information.

The summer training programme was really a learning experience and I hope this will

be useful and helpful to both ARSS and to me in coming day’s o my life.

CONTENTS

Page No

Title Page I

External Guide Certificate II

Internal Guide Certificate III

Examiner Certificate IV

Declaration V

Acknowledgement VI

Preface VII

Contents VIII

Chapter-1

Introduction 1

Objectives 4

Scope 4

Importance 4

Methodology 5

Limitation 7

Chapter-2

Company Profile 8

Vision 10

Mission 10

Achievements 14

Management 15

Chapter-3

Theoretical Framework 16

Objectives 18

Process 22

Methods 26

Chapter-4

Performance Appraisal at ARSS Infrastructure Projects Ltd. 34

Chaptere-5

Data Analysis 38

Swot Analysis 51

Chapter-6

Findings 54

Suggestions 55

Chapter-7

Conclusions 56

Chapter-8

Bibliography

Annexure

Copy of blank questionnaire

CHAPTER -1

INTRODUCTION

INTRODUCTION

There is a human tendency to make judgments about others who are around us

and also about oneself. It seems appraisal is both inevitable and universal. In the

absences of a carefully structured system of appraisal, people will tend to judge the

work performances of other, including subordinates, naturally, informally and

arbitrarily. However the human inclination to judge can create serious motivational,

ethical and legal problems in the work place. Without a structured appraisal system

there is little chance of ensuring that the judgment made will be lawful, fair, defensible

and accurate. Hence there is need for a systematic performance appraisal to judge the

performance of individual in any sector.

Performance appraisal systems began as simple methods of income justification.

That is, appraisal was used to decide whether or not the salary or wage of an individual

employee was justified. The process was firmly linked to material out comes. If an

employee’s performance was found to be less than ideal, a cut in pay would follow. On

the other hand, if their performance was better than the supervisor expected, a pay rise

was in order.

Performance appraisal is a systematic evaluation of an individual employee with

respect to his performance on the job and his potential for development. Performance is

carrying out the work entrusted by the employed directly or through his agents. The

management expects all the employees to perform this specified work for the payments

it makes.

Once the work is entrusted to the employee, it is necessary to measure the

performance to see:-

1) Whether the employee has done the work entrusted to him in

the way it was expected.

2) Whether there is any wastage in tears of time, money,

energy, skill etc.

3) Whether the same work could have been done in a better

way.

4) In the process, whether the employee has equipped himself

with his responsibilities.

Normally it is measured by a third party or the immediate higher officer.

This method of measuring the work is called appraisal. Unless the work is

carried out in the proper way, the employer will lose the employees. It is a

formal exercise in a documented form in which organisation makes an

evaluation of its employees in terms of his contributions made towards

achieving organisational objectives. It also evaluates further personal strengths

and weaknesses in terms of attributes and behaviors demonstrated for meeting

whatever objectives the organisation may consider relevant.

According to Heyel, “Performance Appraisal is the process of evaluating

the performance and qualification of the employees in terms of the requirements

of the job for which he is employed for the purpose of administration including

placement, selection, promotion providing financial rewards and other actions”

Performance Appraisals require differential treatments among the members of a

group as distinguished from actions affecting all members equally. Others regard

it as a process of estimating or judging the value, excellence, qualities or status

of some object, person.

Thus, performance appraisal is the step where the management finds out

how effective it has been at hiring and placing employees. If any problems are

identified steps are taken to communicate with the employee for their remedy.

Performance appraisal is a systematic and objective way of judging the relative

worth or ability of an employee in performing his job. The appraisal is

systematic when it evaluates all performances in the same manner, utilizing the

same approaches so that appraisal of different persons is comparable. Appraisal

has objective also. Its essential features are that it attempts at accurate

measurement by trying to eliminate human biases and prejudices.

Objectives of the Study:

In this research work, the researcher has made an attempt to study the

existing performance appraisal system in ARSS INFRASSTRUCTURE

PROJECT LTD, BBSR. The main objectives of the study are listed as under:

1. To have a brief insight into the existing performance appraisal

system in ARSS INFRASTRUCTURE PROJECT LTD, BBSR.

2. To critically assess the appropriateness of the existing performance

appraisal system.

3. To highlight the perception of appraisers and appraise relating to, the

existing Performance appraisal system.

4. To examine the strength and weakness of the present performance

appraisal system in the unit.

5. To examine the necessities for changes in the appraisal system.

6. To recommend necessary changes/modifications for making the

appraisal system more objective as well as effective for fulfillment of

organisation goals.

Scope of The Study:

The present research work was undertaken in ARSS Infrastructure

Projects Ltd. (BBSR). The scope of study covers the system of performance

appraisal followed in ARSS Infrastructure Projects Ltd (BBSR). I had collected

information from different divisions working under ARSS Infrastructure

Projects Ltd (BBSR). He has also studied different HR related issues prevailing

in ARSS Infrastructure Projects Ltd (BBSR).A brief idea of ARSS Infrastructure

Projects Ltd (BBSR) and its different unit has also been dealt with in this

research work.

Importance of the Study:

Performance management and performance appraisal can be a powerful

aid to any organisation change process as it provides for the joint identification

by the superior and the subordinate of the targeted behavior required and the

skills required to reach that target. Therefore more attention needs to be given to

the performance management of the teams as well as that of the individuals.

Earlier performance appraisal was associated with a rather basic purpose

involving a line manager completing an annual report on a subordinate's

performance and discussing it with him or her in an appraisal interview. But

now performance appraisal has become a general heading for a variety of

activities through which organisations seek to assess employees and develop

their competence enhance performance and distribute rewards. It sometimes

becomes a part of a wider approach to integrating human resource management

strategies known as performance management.

Performance appraisal recognizes the importance of the way a person goes

about his work, rather than just the result he achieves. What does the effective

performer do; and how does he do it? What are the differences between the way he

behaves and the way a poor performer behaves? The managers receive regular

feedback, through performance review, and are closely involved in the setting of

their own targets.

Performance appraisal can be a very useful management tool. A regular

review of each individual's performance should provide accurate information

about the quality and skills of the workforce-essential for manpower planning. An

appraisal system can also encourage commitment to corporate goals and

conformity with corporate norms. In this connection it becomes very much

necessary to study the existing performance appraisal system of an organisation

and to find ways in which the organisation can achieve its objectives in a more

effective and efficient ways.

Methodology:

Researcher is a scientific inquiry, and has three essential characteristics

i.e. objectivity, accuracy & continuity. Methodology has an important bearing in

the collection of reliable and pertinent information as weir as on the outcomes of

the study. The categorization of the proposed investigation into a certain type of

research, a corresponding method or methods designed for it and appropriate

techniques for collecting & analyzing data are together known as methodology

of research.

Research design is a complete outline of the conduct of the proposed research study.

The methodology adopted in conducting this study is discussed below:

Research Design: The study is designed to conduct an enquiry on the

Performance Appraisal System for executive employees in

ARSS INFRASTRUCTURE PROJECTS LTD (BBSR).

Primary sources:-

Primary sources of data collection or primary data are those data’s which are collected

directly from the respondents. They are collected for the first time from the sources

concerned and are popularly said as the first-hand data collection. They are collected

directly from the sources through observation, questionnaires, and schedules or through

personal interview. And these are the tools which are used particularly in surveys and

descriptive type of research.

Secondary sources:-

Data Collection: Data was collected through questionnaires, research, files and

documents of organisation, interview & observation.

Questionnaires: The data collected through questionnaire becomes primary

data, which is used to test hypothesis. The structured

questionnaire consisted of close-ended objective question.

Secondary Data: Secondary data on the organisation was collected from

various secondary sources like records, files, journal &

documents of the organisation.

Interview: Unstructured interview was conducted to get certain

information about the organisation from some employee.

Observation: Non-participant mode of observation was

adopted by the researcher to collect, some information on the

organisation.

Limitations:

While working in any project we face many types of limitations. In this project I

face some problems like:

The employee of the organisation having heavy work scheduled, so they not able

to provide sufficient time to us.

As it is a big Organisation we face time problem also. At any time we cannot

visit to their office.

Some of their HR policies are confidential; they do not disclose it to the public.

In this time we face problem. It is called biasness problem.

Non availability of resources is also one of the important factors here.

We face sampling error also.

CHAPTER-2

COMPANY PROFILE

HISTORY OF ARSS

The company is engaged in construction activities in India .The

Company undertake construction of railway infrastructure, roads, highways,

bridges and irrigation projects. The company started as a construction company

in the field of railway infrastructure development mainly in the state of Orissa.

Construction project are typically awarded through competitive bidding

process to bidden with certain eligibility requirement in their past experience

technical capabilities & financial strength.

The company came into

being as a Private limited one with name and title ARSS STONES PVT LTD

(abbreviated as ARSSSPL) in the year 2000 AD duly registered with the Registrar of

Companies Orissa. Within a span of two years i.e. in 2002 we ventured into the field of

construction of Major Bridges on well foundation.

ARSS Infrastructure Projects Limited (abbreviated as “ARSS.”) an ISO 9001:2008

company was incorporated on Seventeenth May, Two Thousand (17th May, 2000)

under the jurisdiction of the Registrar of Companies, Orissa. Since then it has

established itself as a leading construction company in the field of Rail Infrastructure

Development mainly in the State of Orissa. Now has expanded its field of activities in

the state of Chhatisgarh under the Zonal jurisdiction of East Coast Railway, South

Eastern Railway, South East Central Railway, Northern Railway and Western Railway

since last two years

The company achieved a turnover of Rs. 312.00 crores within a short period upto

2007-2008 years, due to the determined effort. The turnover increased manifolds

during 2008-09 is Rs 628.24 crores and expected to touch turnover of Rs.1000 crores in

2009-10.

Vision

The Vision is to be a large respected global player in the infrastructure development

sector by creating quality integrated facilities in the country, who will be always

thinking for excellence to satisfy its customer and enhancing shareholder's wealth.

Inspired by the company innovative construction services in the national level and even

across the globe. Innovation and commitment are the two ingredients of ARSS group.

ARSS will attract, develop and sustain best talents in the industry. Will continue to

focus on the culture of trust and provide continuous learning opportunities, while

meeting expectation of employees, stakeholders and social community.

Mission

The mission is to focus the company interest in developing railway infrastructure

through effective use of new ideas & technology to become a major player in this

sector. The company dedicates us for optimum utilization to enrich and enhance the

quality of human life, while seeing the company to conquer new horizon and new

heights. Also it will be our mission to diversify in marine, gas & oil pipelines system

and airport projects. ARSS will no longer remain limited in domestic projects and

aspire to spread our wings for global projects.

Major Projects Completed:

Rail Projects:

The company is associated with Indian Railways since last seven years and had the

opportunity of executing every type of work mentioned above starting from survey

design to final commissioning of rail track even on EPC (Engineering, Procurement,

and Construction) basis as well as for allied infrastructure like electrification, signaling,

service, buildings, etc.

Road Projects:

In rural India the roads are not in a good state of condition the degraded road are not

conducive for transportation. Although the company has developed the managerial

expertise for improvement of the condition of the roads, they also provide solution

to traffic problem for the roads ultimately resulting a change.

Urban Projects:

Urban infrastructure is one area, which for years has not received the due attention from

policymakers. Over the last fifty years, while the country’s population has grown by 2.5

times, in the urban areas it has grown by five times. It is estimated that by the turn of the

millennium 305 million Indians shall be living in nearly 3,700 towns and cities spread

across the length and breadth of the country. This would be nearly 30 per cent of

country’s total population. This likely scenario increases the emphasis on urban

infrastructure. Urban infrastructure consists of drinking water, sanitation, sewage

systems, urban transport, primary health services, and environmental regulation. The

rising urban population is continuing to strain infrastructure services in these areas.

Marine Projects:

ARSS staff members have not gained enough experience in management and

performance of marine research programs providing services to the clients with quality

products designed specifically for use in environmental decision making. The expertise

to perform computer-intensive analyses encompassing data-management, statistics,

marine geology, physical oceanography, marine acoustics, fluid dynamics, sediment-

transport, modeling, and time.

Bridge Works:

Bridges and Flyovers are an integral part of any Road and Rail Network. But

constructions of Major Bridges are occasionally taken up independently.ARSS has

made contribution in execution of Bridges and Flyovers not only in the State of Orissa

but in Chhattisgarh, Chennai, Kerela and other States.

List of Major Works Completed:

Major Bridges constructed by ARSS:

1. Construction of sub-structure consisting of Pile and open foundation, piers,

abutments and other ancillary works for 5 major bridges. CA

No./IRCON/RVNL.RBRP/Major Bridges between Rajathagarh -Barang.

2. Construction of Road Over Bridge of Punamagate Railway level crossing

including the approaches on Bhubaneswar of R.D.

3. Construction of Steel Girder Bridge (30.5m span)in the work "Railway Siding

from Gatora to In plant yard (KM 0.963 to KM 12.880) for NTPC-SIPAT

SSTPP PKG-1"

4. Construction four ROB's in the Railway Siding from Gatora to Inplant for NTPC

Sipat(total 4 nos. of ROB).

Major clients of the company:

It is true that significant portion of the company’s business comes from customers who

have been entrusting us repeat business. This is totally due client's satisfaction and

confidence relied on us based on our providing the services.

From time to time, the company’s customers have pruned or

increased their budgets for Construction services on a year-on-year

basis. The company valued customers are;

GOVT. OF ORISSA

GOVT. OF HARYANA

RAIL VIKASH NIGAM LIMITED

RITES LIMITED

IRCON INTERNATIONAL LIMITED

NATIONAL THERMAL POWER CORPORATION(NTPC)

NATIONAL HIGHWAY AUTHORITY OF INDIA

ESSEL MINING

DAMODAR VALLEY CORPORATION

EAST COAST RAILWAY

TAMIL NADU INDUSTRIAL ROAD

INFRASTRUCTURE CORPORATION LTD.

JINDAL STEEL AND POWER LTD.

VISHAKPATNAM STEEL PLANT

ROURKELA STEEL PLANT

Social Responsibilities:

ARSS infrastructure projects ltd a well known name in the state of Orissa in the field of

infrastructure

Development activity

Health-check up & donation

Employee safety programmes & recreational facilities

Creating good & conductive environment

Achievements

Within a short span, ARSS emerged as one of the leading Infrastructure

developer not only in the Eastern India but also in Southern and North-Western

India spreading over in 14 States and executing projects with outstanding

quality, reliability, affordability, eco-friendliness and efficient service.

ARSS’S Construction activity is integral to the industrial development and

involves construction of urban infrastructure, townships, highways, bridges,

railroads, river valleys and power connected projects. The infrastructure industry

globally has witnessed tremendous growth in the past few years. A significant

part of the global engineering construction activity is concentrated in the oil and

gas industry, the power sector, roads construction and is dominated by few

industry majors.

The Company is operating in a competitive market but the credential, capability

and decades of experience in construction sector sets it apart from its

competitors. Today our organisation is one of the leading Civil Engineering

Construction Company in Eastern, Southern and North-Western India. Our

credentials are reflected in its project portfolio – diverse and successful. Our

company possesses special expertise in constructing Bridges, Rail Roads, and

Highways & Flyovers.

Management

Executive

MR. SUBASH AGARWAL (CHAIRMAN)

MR. RAJESH AGARWAL (MANAGING DIRECTOR)

MR. S. K. PATTANAIK (DIRECTOR FINANCE)

MR. S. S. CHAKRABORTY (DIRECTOR TECHNICAL)

Non-Executive

DR. B. SAMAL (INDEPENDENT DIRECTOR)

MR. S. C. PARIJA (INDEPENDENT DIRECTOR)

MR. S. R. CHAUDHURI (INDEPENDENT DIRECTOR)

MR. DIPAK KUMAR DEY (INDEPENDENT DIRECTOR)

CHAPTER-3

THEORITICAL FRAMEWORK

THEORITICAL FRAMEWORK

Performance appraisal is one of the important functioning of personnel

department for the systematic evaluation of employee's performance in a job in terms

of its requirements and his potential for future development. It is the process through

which an individual employee's behavior and accomplishments for a fixed period of

time are measured and evaluated.

Employee appraisal techniques are said to have used for the first time during

the First World War, when, at the instance of Walter Dill Scott. The US Army

adopted the "Man-to-Man" rating system for evaluating military personnel. Those

merit rating programme based on the personality trait, continued up to the mid-fifties.

In the early fifties, however, attention began to be devoted to the performance

appraisal of technical, professional and managerial personnel.

In course of time considerable changes had taken place in the philosophy and

technique of appraisal of employees. As time progressed appraisal system developed

from its most restricted scope of rating of hourly paid employees to the top level

personnel of the organisation. With a great deal of study and experiments in various

organisations appraisal system and goal setting are given more importance than the

assessment of personality trait and deficiencies. In this regard, various labels have

been applied to formal process of evaluation such as merit rating, behavioral

assessment, employee evaluation, personnel, review, progress report, staff assessment,

service rating and fitness report. Some personnel authorities use such concepts

interchangeably, while others interpreted some of these appraisal phrases differently.

However the term performance appraisal or evaluation is most widely used.

Flipoo says that generally the choice lies among three possible approaches:

1. A casual systematic and often haphazard appraisal. This method was commonly

used in the past.

2. The traditional and highly systematic measurement of

(i) Employee characteristics

(ii) Employee contribution or both.

3. The behavioral approach emphasizes mutual goal setting through management by

objectives (MBO) and appraisal of progress by both appraiser and appraise.

Human behavior is a complex phenomenon and individual differ in the ability

and aptitude. These differences create difference in work performance. A good

appraisal system with regular and periodic evaluation makes the top management

judging the effectiveness of personnel and need management to satisfy the needs and

aspiration of the employees and maintains the desired behavior. A sound appraisal

system is beneficial both for the person do the appraisal and the one being appraised.

Objectives of Performance Appraisal :

A good performance appraisal programme would enable the management to

introduce a highly systematic measurement of an individual contribution to the

organisational effectiveness. Such an accurate evaluation of each employee's

performance is useful to management in many ways:

1. It enables management to keep track of man's performance.

2. It serves as a guideline in determining who the promising employees and

who are margined performers.

3. It serves as a guideline to determine how much an employee should be

paid and whether or not deserves to be promoted.

4. To determine training and development needs.

5. To give employee feedback and counsel them.

6. To review performance for salary purposes.

The Purpose of Performance Appraisal:

The purpose of appraisal is to make the most effective use of its human

resources by developing them in a systematic way, in the interest of both

organisations and the individuals being appraised.

Performance appraisal is used as an instrument to control employee behavior

for rewards, punishment and threats. The greater intangible asset of any organisation,

Indian or foreign, is its people. In the emerging scenario of rapid obsolescence, only

those corporations will keep pace with the world that is serious about motivating and

adding value to their employees.

Thus, performance appraisal system helps for:

Improving the employee performance.

Development of the employee professionally.

Taking proper decisions regarding wage and salary.

Validating the personnel record and programs.

Having a proper understanding about their subordinates.

Guiding the job changes with the help of continuous ranking.

Facilitating fair and equitable compensation based on performance.

Ensuring organisational effectiveness through correcting employee for

standard and improved performance and suggesting the change in

employee behavior.

Needs of Performance Appraisal:

Performance Appraisal is being practiced in 90% of the organisations

worldwide. Self-appraisal and potential appraisal also form a part of the performance

appraisal processes.

Typically, Performance Appraisal is aimed at:

1. To review the performance of the employees over a given period of time.

2. To judge the gap between the actual and the desired performance.

3. To help the management in exercising organisational control.

4. To diagnose the training and development needs of the future.

5. Provide information to assist in the HR decisions like promotions, transfers

etc.

6. Provide clarity of the expectations and responsibilities of the functions to be

performed by the employees.

7. To judge the effectiveness of the other human resource functions of the

organisation such as recruitment, selection, training and development.

8. To reduce the grievances of the employees.

9. Helps to strengthen the relationship and communication between superior –

subordinates and management – employees.

According to a recent survey, the percentage of organisations (out of the total

organisations surveyed i.e. 50) using performance appraisal for the various purposes are

as shown in the diagram below:

The most significant reasons of using Performance appraisal are:

Making payroll and compensation decisions – 80%

Training and development needs – 71%

Identifying the gaps in desired and actual performance and its

cause -76%

Deciding future goals and course of action – 42%

Promotions, demotions and transfers – 49%

Other purposes – 6% (including job analysis and providing superior support,

assistance and counseling).

Performance appraisal is a means of telling a subordinate how he is doing and

a suggesting needed change in his behavior, attitude, skills or job knowledge letting

him know “where he stands with the boss” and is also being increasingly used as a

basis for the coaching and counseling of the individual by the supervisors.

The subordinate must

1. Know what is expected of him

2. Have an opportunity to perform.

3. Know how well he is performing.

4. Received assistance as needed and

5. Be rewarded (or penalized) on the basis of results.

Establishing Performance Standards

Communicating the Standards

Measuring the Actual Performance

Discussing Results (Providing Feedback)

Comparing the Standards

Decision Making – Taking Corrective action

PROCESS OF PERFORMANCE APPRAISAL

A. Establishing Performance Standards

The first step in the process of performance appraisal is the setting up of the

standards which will be used to as the base to compare the actual performance of the

employees. This step requires setting the criteria to judge the performance of the

employees as successful or unsuccessful and the degrees of their contribution to the

organisational goals and objectives. The standards set should be clear, easily

understandable and in measurable terms. In case the performance of the employee

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

B. Communicating the Standards

Once set, it is the responsibility of the management to communicate the

standards to all the employees of the organisation.

The employees should be informed and the standards should be clearly

explained to the. This will help them to understand their roles and to know what

exactly is expected from them. The standards should also be communicated to the

appraisers or the evaluators and if required, the standards can also be modified at this

stage itself according to the relevant feedback from the employees or the evaluators.

C. Measuring the Actual Performance

The most difficult part of the Performance appraisal process is measuring the actual

performance of the employees that is the work done by the employees during the specified

period of time. It is a continuous process which involves monitoring the performance

throughout the year. This stage requires the careful selection of the appropriate techniques of

measurement, taking care that personal bias does not affect the outcome of the process and

providing assistance rather than interfering in an employees work.

D. Comparing the Actual with the desired Performance

The actual performance is compared with the desired or the standard performance.

The comparison tells the deviations in the performance of the employees from the

standards set. The result can show the actual performance being more than the desired

performance or, the actual performance being less than the desired performance

depicting a negative deviation in the organisational performance. It includes recalling,

evaluating and analysis of data related to the employees’ performance.

E. Discussing Results

The result of the appraisal is communicated and discussed with the employees on one-to-

one basis. The focus of this discussion is on communication and listening. The results, the

problems and the possible solutions are discussed with the aim of problem solving and

reaching consensus. The feedback should be given with a positive attitude as this can have

an effect on the employees’ future performance. The purpose of the meeting should be to

solve the problems faced and motivate the employees to perform better.

F. Decision Making

The last step of the process is to take decisions which can be taken either to

improve the performance of the employees, take the required corrective actions, or the

related HR decisions like rewards, promotions, demotions, transfers etc.

Challenges of Performance Appraisal:

In order to make a performance appraisal system effective and successful, an

organisation comes across various challenges and problems. The main challenges

involved in the performance appraisal process are:

1. Determining the evaluation criteria

Identification of the appraisal criteria is one of the biggest problems faced

by the top management. The performance data to be considered for evaluation

should be carefully selected. For the purpose of evaluation, the criteria selected

should be in quantifiable or measurable terms

2. Create a rating instrument

The purpose of the Performance appraisal process is to judge the

performance of the employees rather than the employee. The focus of the system

should be on the development of the employees of the organisation.

3. Lack of competence

Top management should choose the raters or the evaluators carefully.

They should have the required expertise and the knowledge to decide the criteria

accurately. They should have the experience and the necessary training to carry

out the appraisal process objectively.

4. Errors in rating and evaluation

Many errors based on the personal bias like stereotyping, halo effect (i.e.

one trait influencing the evaluator’s rating for all other traits) etc. may creep in the

appraisal process. Therefore the rater should exercise objectivity and fairness in

evaluating and rating the performance of the employees

5. Resistance

The appraisal process may face resistance from the employees and the

trade unions for the fear of negative ratings. Therefore, the employees should be

communicated and clearly explained the purpose as well the process of appraisal.

The standards should be clearly communicated and every employee should be

made aware that what exactly is expected from him/her.

METHODS, TECHNIQUES USED FOR APPRAISING PERFORMANCE

Several method and techniques of appraisal are available for measuring the

performance of an employee. The methods and scales differ for obvious reasons.

First, they differ because of difference in job requirements, statistical requirement and

the opinions of management.

Second, they differ because of different kind of workers who are being rated, viz.,

factory workers, executives and salesman.

Third, the variations may be caused by the degree of precision attempted in an

evaluation.

Finally, they way differ because of the methods used to obtain weightings for various

traits.

Strauss and Sayles have classified performance appraisal methods into

traditional and modern methods. The traditional methods lay emphasis on the rating

of the individual's personality traits such as initiative, dependability, drive,

responsibility etc. On the other hand modern methods place more emphasis on the

evaluation of work methods of job achievements - than on personality traits.

Ranking. - The term ranking has been used to describe an alternative

method of performance appraisal where the supervisor has been asked to order his or

her employees in terms of performance from highest to lowest.

Forced Choice Method. - This appraisal method has been developed to

prevent evaluators from rating employees to high. Using this method, the evaluator

has to select from a set of descriptive statements, statements that apply to the

employee. The statements have been weighted and summed to at, effectiveness index.

Forced Distribution. - The term used to describe an appraisal system

similar to grading on a curve. The evaluator had been asked to rate employees in

some fixed distribution of categories. One way to do this has been to type the name of

each employee on a card and ask the evaluators to sort the cards into piles

corresponding to rating.

Paired Comparison. - The term used to describe an appraisal method for

ranking employees. First, the names of the employees to be evaluated have been

placed on separate sheets in a pre-determined order, so that each person has been

compared with all other employees to be evaluated. The evaluator then checks the

person he or she felt had been the better of the two on the criterion for each

comparison. Typically the criterion has been the employees over all ability to do the

present job. The number of times a person has been preferred is tallied, and the tally

developed is an index of the number of preferences compared to the number being

evaluated.

Graphic Rating Scale. - The term used to define the oldest and most

widely used performance appraisal method. The evaluators are given a graph and

asked to rate the employees on each of the characteristics. The number of

characteristics can vary from one to one hundred. The rating can be a matrix of boxes

for the evaluator to check off or a bar graph where the evaluator checked off a

location relative to the evaluators rating.

Checklists. - The term used to define a set of adjectives or descriptive

statements. If the rater believed the employee possessed a trait listed, the rater

checked the item; if not, the rater left the item blank. rating score from the checklist

equaled the number of checks.

Behavioral Anchored Rating Scales. - The term used to describe a performance

rating that focused on specific behaviors or sets as indicators of effective or ineffective

performance, rather than on broadly stated adjectives such as "average, above average, or

below average". Other variations were:

Behavioral observation scales

Behavioral expectations scales

Numerically anchored rating scales

Critical Incident Technique. - The term used to describe a method of performance

appraisal that made lists of statements of very effective and very ineffective behavior for

employees. The lists have been combined into categories, which vary with the job. Once the

categories had been developed and statements of effective and ineffective behavior had been

provided, the evaluator prepared a log for each employee. During the evaluation period, the

evaluator recorded examples of critical behaviors in each of the categories, and the log has

been use to evaluate the employee at the end of the evaluation period.

Management by Objectives. - The management by objectives performance appraisal

method has the supervisor and employee get together to set objectives in quantifiable terms.

The appraisal method has worked to eliminate communication problems by the establishment

of regular meetings, emphasizing results, and by being an ongoing process where new

objectives have been established and old objectives had been modified as necessary in light

of changed conditions.

BENEFITS OF APPRAISAL:-

It offers a rare chance for a supervisor and subordinate to have "time out" for a one-on-one

discussion of important work issues that might not otherwise be addressed. Almost

universally, where performance appraisal is conducted properly, both supervisors and

subordinates have reported the experience as beneficial and positive.

Appraisal offers a valuable opportunity to focus on work activities and goals, to identify and

correct existing problems, and to encourage better future performance. Thus the performance

of the whole organisation is enhanced.

For many employees, an "official" appraisal interview may be the only time they get to have

exclusive, uninterrupted access to their supervisor. Said one employee of a large organisation

after his first formal performance appraisal, "In twenty years of work, that's the first time

anyone has ever bothered to sit down and tell me how I'm doing."

The value of this intense and purposeful interaction between a supervisors and subordinate

should not be underestimated.

Performance appraisal can have a profound effect on levels of employee motivation and

satisfaction - for better as well as for worse.

Performance appraisal provides employees with recognition for their work efforts. The power

of social recognition as an incentive has been long noted. In fact, there is evidence that

human beings will even prefer negative recognition in preference to no recognition at all.

If nothing else, the existence of an appraisal program indicates to an employee that the

organisation is genuinely interested in their individual performance and development. This

alone can have a positive influence on the individual's sense of worth, commitment and

belonging.

The strength and prevalence of this natural human desire for individual recognition should

not be overlooked. Absenteeism and turnover rates in some organisations might be greatly

reduced if more attention were paid to it. Regular performance appraisal, at least, is a good

start.

Training and Development

Performance appraisal offers an excellent opportunity - perhaps the best that will ever occur -

for a supervisor and subordinate to recognize and agree upon individual training and

development needs. During the discussion of an employee's work performance, the presence

or absence of work skills can become very obvious - even to those who habitually reject the

idea of training for them.

Performance appraisal can make the need for training more pressing and relevant by linking it

clearly to performance outcomes and future career aspirations.

From the point of view of the organisation as a whole, consolidated appraisal data can form a

picture of the overall demand for training. This data may be analyzed by variables such as

sex, department, etc. In this respect, performance appraisal can provide a regular and efficient

training needs audit for the entire organisation.

Recruitment and Induction

Appraisal data can be used to monitor the success of the organisation's recruitment and

induction practices. For example, how well are the employees performing who were hired in

the past two years. Appraisal data can also be used to monitor the effectiveness of changes in

recruitment strategies. By following the yearly data related to new hires (and given sufficient

numbers on which to base the analysis) it is possible to assess whether the general quality of

the workforce is improving, staying steady, or declining.

Employee Evaluation

Though often understated or even denied evaluation is a legitimate and major objective of

performance appraisal. But the need to evaluate (i.e., to judge) is also an ongoing source of

tension, since evaluative and developmental priorities appear to frequently clash. Yet at its

most basic level, performance appraisal is the process of examining and evaluating the

performance of an individual.

Though organisations have a clear right - some would say a duty - to conduct such

evaluations of performance, many still recoil from the idea. To them, the explicit process of

judgment can be dehumanizing and demoralizing and a source of anxiety and distress to

employees.

It is been said by some that appraisal cannot serve the needs of evaluation and development at

the same time; it must be one or the other.

But there may be an acceptable middle ground, where the need to evaluate employees

objectively, and the need to encourage and develop them, can be balanced.

THE PROBLEMS AFFECTING PERFORMANCE APPRAISAL:

i) The Halo Effect:

The tendency of the evaluators to base assessments of all individual characteristics on the

raters' overall impression of the person being evaluated is termed as the “Halo Effect”.

ii) Bias:

The appraiser may be biased for several reasons such as regional or religious backgrounds,

social or interpersonal conflicts.

iii) Inflation of Ratings:

There is a tendency to inflated ratings, which at times, happens overtime, or it may even

happen at all times with same raters.

iv) Central Tendency:

This is the tendency to avoid using the extremes of rating scales and to cluster the ratings

around the midpoint.

v) Leniency Error:

This occurs when the rater artificially assigns all or a certain group of employees’ high

performance ratings and all or certain scores cluster at top levels of the management scales.

vi) Strictness Error:

This occurs when the rater artificially assigns all or certain groups of employees low

performance ratings, and all or certain scores cluster at the button levels of measurement

scales.

vii) Horns Effect:

In this case a rater always rates his subordinate lower than their actual performance. If the

expectation of the rater is very high, he expects his subordinates to perform extra-ordinary

and if he is not satisfied with the performance he rates lower than what the rating should be.

viii) Organisational Leadership:

The style of leadership is an important determinant of an effective performance appraisal

system. It is the effective leadership, which motivate the entire organisation for better

performance but of the opposite condition exists, then appraisal system is considered as an

imposition and structure.

GUIDELINES FOR SUCCESSFUL APPRAISAL

If a performance appraisal System is intended to be successful it is necessary to take

precautions, so that some of the limitations can be eliminated while some other can be

minimized to a great extent.

The success of an appraisal scheme based on the following factors:

i) Both appraiser and the appraise should understand the scheme that it is for their

growth and development.

ii) Existence of an atmosphere of confidence and trust facilities, interaction for mutual

benefits.

iii) The emphasis should be given on "what he achieved" that "what a man does".

iv) A post appraisal interview and counseling should be arranged so that employees can

know where they stand and increase mutual understanding.

v) Which particular technique is to be adopted for the appraisal should be governed by

such factors as financial resources, philosophy and objectives of an organisation?

vi) To evaluate the appropriateness of any performance evaluation system, it would be

necessary to keep in view all the necessary and sufficient condition for such a

system to work effectively after it is evolved. There are several behavioral pre-

conditions which are to be kept in mind.

CHAPTER-4

PERFORMANCE APPRAISAL

ATARSS INFRASTRUCTURE

PROJECTS LTD

PERFORMANCE APPRAISAL AT ARSS

Executive performance appraisal system of ARSS is done in a booklet consisting of

few forms as detailed below:

FORM-A: Finalizing the key task by the appraise himself.

FORM-B: Performance review by the Reporting Officer in consultation with Appraise to set

up key tasks for the financial year.

FORM-C1: Performance Review for the achievement of set target during 1st week of July.

FORM-C2: Performance Review for the achievement of set target during 1st week of

January.

FORM-D1: Review of Appraisee’s target achievement with reference to form B.C1 & C2 by

the Reporting Officer as well as Reviewing Officer.

FORM-D2: Assessment of Appraisee’s managerial skill appraisal leading performance &

potential factor by the Reporting & Reviewing Officer.

FORM-D3: Assessment of Appraisee’s managerial skill appraisal leading to performance

and potential factor by Reporting and Reviewing Officer.

FORM-E: Appraisee’s final assessment by the appraisal cell with reference to the specified

weight age depending upon his grade.

FORM-F: Overall comments on Appraisee’s performance by Senior Executives.

#Reporting officer, Reporting officer (F) and Reviewing Officer will independently rate the

managerial skills.

#Reporting officer & Reviewing officer will independently rate the concerned appraise on

achievement of key tasks.

#Percentage of achievement and comments of the Reporting officer are to be shown to the

concerned Appraisee in Form D1.

LEVEL OF REPORTING OFFICER, REVIEWING OFFICER AND

HIGHER AUTHORITY:

The level of reporting officer and higher authority in respect of different levels

of appraise will be as under:

1. Reporting Officer: The executive next higher in rank and grade not below the

level of E4 officer to whom the appraise reports. In case the executive at E3

level, is the sectional head, there concerned executive will be the reporting

officer of EO, E1 & E2 executives.

2. Reporting Officer (F): The Reporting Officer (F) is the head of the functional

area in case of the executives administratively reporting to the authority other

than his/her functional areas.

3. Reviewing Officer: The executive next higher in rank and grade to the

Reporting Officer and to whom the reporting officer reports.

In case of the reporting to the Complex Head at ED level, Reviewing Officer

will be the concerned Functional Director.

4. Higher Authority: The executive next higher in the rank and grade to the

Reviewing Officer and to whom the Reviewing Officer reports.

5. Personal staff & Directly Reporting Staff: The respective controlling officer

will be Reporting Officer of personal staff and directly reporting staff. The

Reviewing Officer and Higher Authority will be as per clause 3 & 4.

6. In case the specified levels of Officers noted above are not in position, the

next higher officer will evaluate in his/her place.

7. Accepting Authority: Appraisal Report after being routed through Higher

Authority, is to be placed before the Accepting Authority, as indicated below,

who in turn is required to pass on the Appraisal Form to the Appraisal Cell at

Corporate Office.

Level of Appraisee Level of Accepting Authority

1. E7 and above CMD

2. E5 and E6 Director

3. E3 and E4 Executive Director

4. E0, E1 and E2 General Manager

For executive reporting to CMD, ratings given by CMD, will be final and carry

100% weightage.

N.B. In case of transfer of Appraise or Reporting Officer, the Performance

Appraisal Booklet is to be handed over to the HOD under intimation to the

Appraisal Cell, Corporate Office.

MANPOWER AT ARSS INFRASTRUCTURE PROJECT LTD.

The manpower of ARSS Infrastructure Projects Ltd. consists of Executives,

Supervisors, Skilled workers and unskilled workers. The total manpower position at

its head office near about 500.Out of that 90 are Executives, 50 are Supervisors, 200

Skilled and 160 are unskilled workers.

CHAPTER-5

DATA ANALYSIS

DATA ANALYSIS

I have developed a questionnaire in consultation with my guide consisting of about 12

questions. The questionnaire has been given to about 60 executives of ARSS at

Bhubaneswar and the opinion has been collected. The data analyses are as under:

1. You think that performance appraisal system is necessary in organisation.

Question No- 1 Respondents Percentages%Strongly Agree 32 53%Agree 24 40%Neither Nor 0 0%Disagree 0 0%Strongly Disagree 4 75

Figure- 1

53%40%

7%

Strongly Agree Agree Neither NorDisagree Strongly Disagree

Above diagram 53% of employee strongly agree and 40% of the employee agree that

Performance Appraisal is necessary in the organisation.7% employee are neither agree

nor disagree that it is necessary in the organisation.

2. You are satisfied with the existing performance appraisal system.

Question No- 2 Respondents Percentages%Strongly Satisfied 28 54%Satisfied 20 38%Neither Nor 0 0%Dissatisfied 8 0%Strongly dissatisfied 4 8%

Figure – 2

54%38%

8%

Strongly Satisfied Satisfied Neither Nor Dissatisfied Strongly Dissatisfied

In the above diagram 54% of the employees strongly satisfied and 38% employees are

satisfied with their existing performance appraisal system, where 8% employees are strongly

dissatisfied with the system.

3. You think that the performance appraisal is helpful in reducing relevance among the employee.

Question No- 3 Respondents Percentages%Strongly Agree 24 40%Agree 20 33%Neither Nor 12 20%Disagree 4 7%Strongly Disagree 0 0%

Figure- 3

40%

33%

20% 7%


Above diagram 40% of employee strongly agree and 33% employee are agree with

performance appraisal is helpful in reducing relevance among the employee, 20% employee

are stay neutral and 7% employees are disagree with that.

4. You think that the performance appraisal is helpful in improving the personal skill.


Figure- 4

53%

20%

20% 7%


In the above diagram 53% of the employee are strongly agree and 20% agree that

performance appraisal is helpful in reducing relevance among the employee and 20% are in

neutral where 7% employees are disagree with it.

5. You think that the performance appraisal system helps to identify the strength and

weakness of the employee.


Figure-5

27%

20%13%

33%

7%


In the above diagram 27% employee are strongly agree and 20% agree with it that the

performance appraisal system helps to identify the strength and weakness of the employee,

where as 13% neither agree nor disagree and 33% employees and 7% employees are disagree

and strongly disagree .

6. You think that the performance rating is helpful for management to provide counseling.


Figure-6

33%

40%

20% 7%


Above diagram 33% employees are strongly agree and 40% employees are agree that the

performance rating is helpful for management to provide counseling, 20% employees are

neutral and 7% employees are disagree.

7. You think that promotion should be purely based on performance appraisal.


Figure- 7

27%

40%

20%

13%


In the above diagram 27% employees are strongly agree and 40% employee are agree with

that promotion should be purely based on performance appraisal,20% employees are neither

agree nor disagree and 13% employees are disagree with it.

8. You think that pay fixation should be as per performance rating.


Figure-8

60%

27%

13%


In the above diagram 60% employees are strongly agree and 27% employees are agree that

pay fixation should be as per performance rating but 13% employees are neither agree nor

disagree.

9. You think that performance appraisal increases employee’s motivation and morale.


Figure-9

40%

27%

13%

13% 7%


Above diagram 40% employees are strongly agree and 27% employees are agree that

performance appraisal increases employee’s motivation and morale ,but 13% employees are

in neutral and 13% employees are disagree and 7% employees are strongly disagree.

10. You think that the performance should assessed by self.


Figure- 10

27%

13%27%

20%

13%



performance should assessed by self, and 27% employees are neutral .20% employees are

disagree and 13% employees are strongly disagree with it.

11. You think that the performance should assessed by superior.


Figure-11

40%

27%

20%

7%7%

Strongly Agree Agree Neither Nor Disagree Strongly Disagree


performance should assessed by superior but 20% employees are neither agree nor disagree

and 7% employees are disagree another 7% employees are strongly disagree in it.

12. You think that the performance should assessed by Independent bodies/Consultants.


Figure-12

13%

27%

13%20%

27%

Strongly Agree Agree Neither Nor Disagree Strongly Disagree

In the above diagram 13% employees are strongly agree and 27% employees are agree that

that the performance should assessed by Independent bodies/Consultants, 13% employees are

neutral but 20% disagree and 27% are strongly disagree in it.

SWOT ANALYSIS

A SWOT analysis must first start with defining a desired end state or objective. A SWOT

analysis may be incorporated into the strategic planning model. Strategic Planning has been

the subject of much research. SWOT analysis is just one method of categorization and has its

own weaknesses. For example, it may tend to persuade companies to compile lists rather than

think about what is actually important in achieving objectives. It also presents the resulting

lists uncritically and without clear prioritization so that, for example, weak opportunities may

appear to balance strong threats.

SWOT is a planning tool used to understand the Strengths, Weaknesses, Opportunities, and

Threats involved in a project or in a business. It involves specifying the objective of the

business or project and identifying the internal and external factors that are supportive or

unfavorable to achieving that objective. SWOT is often used as part of a strategic planning

process.

The SWOT analysis framework has gained widespread acceptance because it is both simple

and powerful for strategy development. However, like any planning tool, SWOT is only as

good as the information it contains. Thorough market research and accurate information

systems are essential for the SWOT analysis to identify key issues in the environment.

Strengths:

The performance appraisal system strengthens the superior-subordinate

relationship in the organisation.

The online appraisal system is easily accessible from anywhere and also at any

time.

The employees always aware of their weak areas in their performance.

Weakness:

The performance rating depends on the of the superiors.

A 360-degree appraisal cannot be provided to the employees.

Opportunities:

The appraisal system gives a chance to change the policies by considering the

performance level of the employees.

The employees get a better chance to express their efficiency in front of their

superiors.

Threats:

The appraisal system may sometime make bigger gap between the employees.

A poor performance of the employees raises questions on the performance of

the appraiser.

CHAPTER-6

FINDINGSAND

SUGGESTIONS

FINDINGS:

From the survey at ARSS, I have collected some data regarding performance

appraisal that it is done on annually basis.

It is also found that employees are generally appraised by their immediate

supervisors.

Performance Appraisal is necessary for the employees.

From above data it is found that the Performance Appraisal leads to

identification of hidden potential of the employees.

Performance Appraisal helps to achieve the goals of the organisation.

Performance Appraisal helps to identify the training need.

It is also found that performance appraisal is linked with promotion.

It is also found that the performance appraisal does not help in increasing the

salary or any other incentives.

It is also found that the feedback is given only when it is required.

Generally people agree that performance appraisal helps to motivate

employees.

Performance Appraisal helps in polishing the skills of employee.

A jealousy is one of the obstacles.

Performance Appraisal also helps to create good communication between

appraisers and appraise.

Generally people are satisfied with the evaluation system made in

organisation.

Performance Appraisal process helps to improve the performance of the

employees.

Most of the employees said that if they want to review the current

performance appraisal system.

SUGGESTIONS:

Proper judgment about performance parameter will motivate the employee to

lead the plant productivity.

Proper training should be given to develop the skill of the employee to achieve

the target setting by the employers.

Performance appraisal should be used for increasing the salary of the

employees.

Individuals should be measured not against targets given to them but their

potential should be measured for which a little better system should be

developed.

360 degree performance appraisal should be given advantage.

CHAPTER-7

CONCLUSION

CONCLUSION:

Performance Appraisal refers to the assessment of an employee’s actual

performance, behavior on jobs, and his or her potential for future performance.

Appraisal has several objectives but the main purposes are to assess training needs, to

effect promotions, and to give pay increases.

Appraisal of performance proceeds in a set pattern. The steps involved are

defining appraisal objectives, establishing job expectations, designing the appraisal

programme, conducting performance interview, and using appraisal data for different

HR activities.

Performance appraisal is systematic and objective way of evaluating both

work related behavior and potential of employees. It should be carried out in an

objective manner. In order to get best result of performance appraisal the CEO of

every organisation should create a culture of excellence that motivates employee at all

level and also encourage team work.

In recent times, leading Indian companies like Philips, Glaxo , Cadbury,

Sandoz have all redesigned their system shifting from a pure performance orientation

to a potential-cum-performance based appraisal system. Mostly performance appraisal

system always depends upon a consistent approach.

So, we may conclude that Performance Appraisal is very much essential for

an organisation by which the performance of the employees can be evaluated and

effective training can be given to them for better performance.

CHAPTER-8

BIBLIOGRAPHY

BOOKS

Kothari C.R., “Research Methodology” New Age International (P) Ltd, Publishers 7 th

edition 2009.

Suba Rao P., “Human Resource Management and Industrial Relations” Himalaya Publishing House, Mumbai, 3rd edition 2008.

Dessler Gray, “Human Resource Management” PHI, New Delhi, 11th edition 2008.

Rao V.S.P, “Human Resources Management text and cases “Excel Books”, New Delhi, 2nd edition 2005.

Company’s Manuals of ARSS.

Web Portals Visited:

www.arss.com

http://www.businessballs.com/performanceappraisals.htm

http://www.humanresources.hrvinet.com/performance-appraisal-methods/

http://www.humanresources.hrvinet.com/performance-appraisal-methods/

http://www.businessballs.com/performanceappraisals.htm

http://www.arss.com/

A SURVEY ON PERFORMANCE APPRAISAL OF ARSS INFRASTRUCTURE

PROJECT LTD.

BY

KIRTY RANJAN NAYAK

TRIDENT ACADEMY OF TECHNOLOGY

REGD. NO: 0906289022

Employee Name-................................................................................................................

Sl No-............ Designation............................................... Age............Salary..................

Questionnaire

[Please put tick mark (√) in appropriate place.]

1. Do you think that performance appraisal system is necessary in organisation?

I. Strongly Agree

II. Agree

III. Neither Nor

IV. Disagree

V. Strongly Disagree

2. Are you satisfied with the existing performance appraisal system?

I. Strongly Satisfied

II. Satisfied

III. Neither Satisfied Nor Dissatisfied

IV. Dissatisfied

V. Strongly Dissatisfied

3. Do you think that the performance appraisal is helpful in reducing relevance among

the employee?

I. Strongly Agree

II. Agree

III. Neither Nor

IV. Disagree


4. Do you think that the performance appraisal is helpful in improving the personal

skill?

I. Strongly Agree

II. Agree

III. Neither Nor

IV. Disagree


5. Do you think that the performance appraisal system helps to identify the strength and

weakness of the employee?

I. Strongly Agree

II. Agree

III. Neither Nor

IV. Disagree


6. Do you think that the performance rating is helpful for management to provide

counselling?

I. Strongly Agree

II. Agree

III. Neither Nor

IV. Disagree


7. Do you think that promotion should be purely based on performance appraisal?

I. Strongly Agree

II. Agree

III. Neither Nor

IV. Disagree


8. Do you think that pay fixation should be as per performance rating?

I. Strongly Agree

II. Agree

III. Neither Nor

IV. Disagree


9. Do you think that performance appraisal increases employee’s motivation and

morale?

I. Strongly Agree

II. Agree

III. Neither Nor

IV. Disagree


10. Do you think that the performance should assessed by self?

I. Strongly Agree

II. Agree

III. Neither Nor

IV. Disagree


11. Do you think that the performance should assessed by superior?

I. Strongly Agree

II. Agree

III. Neither Nor

IV. Disagree


12. Do you think that the performance should assessed by Independent

bodies/Consultants?

I. Strongly Agree

II. Agree

III. Neither Nor

IV. Disagree


13. Suggestion if any:-................................................................................................

................................................................................................

Signature

Performance Appraisal Project

Documents

arss bhubaneswar

services of arss

project guide

project report

bonafied project work

previous project work

senior hr executive

junior hr executive