INTRODUCTION
Significance of performance appraisal in the corporate
context
EXECUTIVE SUMMARY
Human Resource Management is a management function that helps
managers to Recruit, Select, Train and Develop members for an
organization. Performance appraisal may be understood as the
assessment of an individuals performance being measured against
such factors as job knowledge, quality and quantity of output,
initiative, leadership abilities, supervision, dependability,
co-operation, judgment, versatility, health and the like.
The Performance Appraisal System needs to be very transparent
and helpful both to the employees and to the organization. The need
is to get a feedback from appraisers and appraisees, working in the
organization, about the current state of the PAS. Only after
analyzing the current state of PAS, the human resource managers can
go to the next step of improvements in PAS. A survey is therefore
required.The type of research choosen is quantitative in nature.
The research is undertaken to ascertain the views/opinions of the
employees working with the company and to suggest appropriate
modifications about the existing PAS. Structured questionnaire has
been prepared and discussed personally with the respondents.
The sample size will be restricted to 100 respondents choosen by
applying stratified random method.
The methods adopted for the performance appraisal were
360-degree appraisal, check list, rating scale, management by
objective etc. that are commonly found among the information
technology companies in Bangalore. The employees want their
appraiser to give the feedback to them.
1. INTRODUCTION TO IT INDUSTRYOver the last decade, India has
developed into a major and credible information technology (IT)
outsourcing centre. In India, the software boom started somewhere
in the late 1990s. Most of the Indian software companies at that
moment offered only limited software services such as the banking
and the engineering software.
Information Technology (IT), a knowledge-based industry, has the
tremendous potential of becoming an engine of accelerated economic
growth, productivity improvement for all sectors of the economy and
means of efficient governance.
The IT software and service industry has been categorized into
three broad sectors:
Software Product and Technology Services,
IT Services, and
IT Enabled Services.
It enhances access to information, protects consumers, provides
access to government services, makes skill formation and training
more effective, improves delivery health services, and promotes
transparency. It provides tremendous employment potential and
linkages between government and the people both at the rural and
urban level. Investment in knowledge based industries will
determine the level of the countrys dominant position in the world
economy in the next two decades.
The IT sector is one of the fastest growing segments of Indian
industry, growing from Rs. 13,200 crore in 1992-93 to Rs. 80,884
crore in 2008-09. Sixty per cent (Rs. 48,134 crore in 2008-09) is
accounted for by software and the remaining 40 per cent (Rs. 32,750
crore) by hardware. IT is an area where the country has a
competitive edge and can establish global dominance. Advancements
in IT have a profound impact on the economy and the quality of
human life.
The ITES sector in India has emerged as a key engine of growth
for the Indian IT industry and the technology-led services
industry. This sector has grown from Rs. 2,400 crore in 1999-2000
to Rs. 4,100 crore in 2008-2009, providing employment to 70,000
people.The major users of IT services are the government, financial
services and banking, manufacturing and retail and distribution.
New areas likely to emerge are communication, healthcare and
utilities, as these will increasingly be deregulated. However, IT
services essentially require high-quality manpower, state of the
art skills, world-class telecom and IT-knowledge based
environment.Status of IT Software Industry in India and GlobalThe
Indian IT software and service industry has emerged as one of the
fastest growing sectors in the Indian economy, with a growth rate
exceeding 50 per cent in exports and 40 per cent in the total IT
industry over the last five years.
Software Product and Technology Services provide a high growth
opportunity for the Indian software industry.
Indian companies have a market potential of software product
development, such as enterprise software (e-business solution, ERP,
e-corporate governance), consumer software (personal productivity
tools) and embedded software.
Indian companies have developed a number of highly acclaimed and
popular packages, such as HR management and business accounting by
TCS, banking automation packages by Infosys, ERP tools by RANCO,
etc.
The total global software and IT services market is estimated to
be about $1.2 trillion of which Indias share is 2 per cent. The
Indian software industry is under threat from emerging
competitors.
US technology firms are rapidly shifting back-office functions
to India. Foreign firms are eagerly waiting to set up centres to
process financial claims, payroll-data, building customer-support
desk.
The overall success of the IT industry in India has shown spill
over effects to other industries in the country. The Indian economy
has grown at an average rate of 6.0% a year during the last five
years [11]. In India, the success of software industry can be
attributed to the excellent teamwork between the Government and the
Industry. Government of India, considering the performance of the
Indian software industry, has extended all support, including
fiscal benefits, availability of high speed data communications and
infrastructure and has ensured almost red tape-free system.1.1
INTRODUCTION TO PERFORMANCE APPRAISAL AND ITS IMPORTANCEAn
organizations goals can be achieved only when people put in their
best efforts. How to ascertain whether an employee has shown his or
her best Performance on a given job? The answer is Performance
appraisal. Employee assessment is one of the fundamental jobs of
HRM, but not an easy one though. Appraising the performance of
individuals, groups and organizations is a common practice of all
societies. While in some instances these appraisal processes are
structured and formally sanctioned, in other instances they are an
informal and integral part of daily activities. In social
interactions, performance is conducted in a systematic and planned
manner to achieve widespread popularity in recent years.In simple
terms, performance appraisal may be understood as the assessment of
an individuals performance being measured against such factors as
job knowledge, quality and quantity of output, initiative,
leadership abilities, Supervision, dependability, cooperation,
judgment, versatility, health and the like. Assessment should not
be confined to past performance alone. Potentials of the employee
for future performance must also be assessed.Meaning of performance
appraisal:Performance appraisal is the process of obtaining,
analyzing and recording information about the relative worth of an
employee. The focus of the performance appraisal is measuring and
improving the actual performance of the employee and also the
future potential of the employee. Its aim is to measure what an
employee does.Definition of performance appraisal:According to
Edwin.B.Flippo performance appraisal is the systematic, periodic
and an impartial rating of an employees excellence in the matter
pertaining to his present job and his potential for a better job.
Performance appraisal is the systematic way of reviewing and
assessing the performance of an employee during a given period of
time and planning for his future.The other terms used for
performance appraisal are:
Performance rating
Employee assessment
Employee performance review
Personnel appraisal
Performance evaluation
Employee evaluation Merit rating.In a formal sense, employee
assessment is as old as mankind.
Features of performance appraisal:i. Performance appraisal is
the systematic description of an employees job relevant strengths
and weaknesses.
ii. The basic purpose is to find out how well the employees are
performing the job and establish a plan of improvement.
iii. Appraisals are arranged periodically according to a
definite plan.
iv. Performance appraisal is not job evaluation. It refers to
how well some one is doing the assigned job. Job evaluation
determined how much a job is worth to the organization and
therefore, what range of pay should be assigned to the job.v.
Performance appraisal is a continuous process in every large scale
organization.
Objectives of performance Appraisal: To review the performance
of the employees over a given period of time. To judge the gap
between the desired and the actual performance.
To help the management in exercising organizational control.
Help to strengthen the relationship and communication between
superiors, subordinate and management employees.
To diagnose the strengths and weakness of the individuals so as
to identify the training and development needs of the future.
To provide feedback to the employees regarding their past
performance.
Provide information to assist in the other personal decisions in
the organization.
Provide clarity of the expectations and responsibilities of the
functions to be performed by the employees. To judge the
effectiveness of the other human resource functions of the
organization such as recruitment, selection, training and
development.
To reduce the grievances of the employees.
Provide information to assist in the hr decisions like
promotions, transfers etc.
Provide clarity of the expectations and responsibilities of the
functions to be performed by the employees. Need for performance
appraisal: Provide information about the performance ranks basing
on which decision regarding salary fixation, confirmation,
promotion, transfer and demotion are taken based on performance in
India Rayon. Provide feedback information about the level of
achievement and behavior of subordinates. This information helps
about the level of achievement and behavior of subordinates. This
information helps to review the performance of the subordinate,
rectifying performance deficiencies and to set new standards of
work, if necessary. Provide information which helps to counsel the
subordinate. Provide information to diagnose deficiency in
employees regarding skill, knowledge. Performance appraisals
determine training and developmental needs. To prevent grievances
and in disciplinary activities.PROCESS OF PERFORMANCE APPRAISAL
1. ESTABLISHING PERFORMANCE STANDARDS
The first step in the process of performance appraisal is the
setting up of the standards which will be used to as the base to
compare the actual performance of the employees. This step requires
setting the criteria to judge the performance of the employees as
successful or unsuccessful and the degrees of their contribution to
the organizational goals and objectives. The standards set should
be clear, easily understandable and in measurable terms. In case
the performance of the employee cannot be measured, great care
should be taken to describe the standards.2. COMMUNICATING THE
STANDARDS
Once set, it is the responsibility of the management to
communicate the standards to all the employees of the organization.
The employees should be informed and the standards should be
clearly explained to the. This will help them to understand their
roles and to know what exactly is expected from them. The standards
should also be communicated to the appraisers or the evaluators and
if required, the standards can also be modified at this stage
itself according to the relevant feedback from the employees or the
evaluators.3. MEASURING THE ACTUAL PERFORMANCE
The most difficult part of the performance appraisal process is
measuring the actual performance of the employees that is the work
done by the employees during the specified period of time. It is a
continuous process which involves monitoring the performance
throughout the year. This stage requires the careful selection of
the appropriate techniques of measurement, taking care that
personal bias does not affect the outcome of the process and
providing assistance rather than interfering in an employees
work.
4. 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 organizational performance.
It includes recalling, evaluating and analysis
of data related to employees performance. .
5. DISCUSSING RESULTSThe 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.
6. DECISION MAKINGThe 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.
Essentials or prerequisite of performance appraisal:The
essentials of an effective performance system are as follows:
Documentation: Means continuous noting and documenting the
performance. It also helps the evaluators to give a proof and basis
of their ratings.
Practical and simple format: The appraisal format should be
simple, clear, fair and objective. Long and complicated formats are
time consuming, difficult to understand, and do not elicit much
useful information.
Evaluation technique: An appropriate evaluation technique should
be selected; the appraisal system should be performance based and
uniform. The criteria for evaluation should be based on observable
and measurable characteristics of the behavior of the
employees.
Communication: Communication is an indispensable part of the
performance appraisal process. The desired behavior or expected
results should be communicated to the employees as well as the
evaluators. Communication also plays an important role in the
review or feedback meeting. Open communication system motivates the
employees to actively participate in the appraisal process.
Feedback: The purpose of feedback should be developmental rather
than judgemental.to maintains its utility, timely feedback should
be provided to the employees and the manner of giving feedback
should be such that it should have a motivating effect on the
employees future performance. Personal bias: Interpersonal
relationships can influence the evaluation and the decisions in the
performance appraisal process. Therefore, the evaluators should be
trained to carry out the processes of appraisals without personal
bias and effectively. Standards\goals: The goals set should be
clear, easy to understand, achievable, motivating, time bound and
measurable.CHALLENGES OF PERFORMANCE APPRAISALIn order to make a
performance appraisal system effective and successful, an
organization comes across various challenges and problems. The main
challenges involved in the performance appraisal process are:1.
DETERMINING THE EVALUATION CRITERIAIdentification 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 organization.
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 evaluators 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.Problems of performance
appraisal:The problem with subjective measure is the rating which
is not verifiable by others and has the opportunity for bias. The
rate biases include (a) Halo effect (b) The error of central
tendency (c) The leniency or strictness (d) Personal prejudice (e)
The recent performance effect. Halo effect: It is the tendency of
raters to depend excessively on the rating of one trait or
behavioral consideration in rating all others traits or behavioral
consideration. One way of minimizing the halo effect is appraising
all the employees by one rate before going to rate on the basis of
another trait. The error of central tendency: Some raters follow
play safe policy in rating by rating all the employees around the
middle point of rating scale and they avoid rating the people at
both the extremes of the scale. They follow play safe policy
because of answerability to management or lack of knowledge about
the job and person he is rating or least interest in his job. The
leniency or strictness: The leniency bias crops when some raters
have a tendency to be liberal in their rating by assigning higher
rates consistently. Such ratings do not serve any purpose. Equally
damaging one is assigning consistently low rates. Personal
prejudice: If the rater dislikes any employee or any group, he may
rate them at the lower end, which may distort the rating purpose
and effect the career of these employees. The recent performance
effect: The raters generally remember the recent actions of the
employees at the time of rating and rate on the basis of these
recent actions favorable or unfavorable than on the whole
activities.The other factors are considered as problems are:
Failure of the superiors in conducting performance appraisal and
post performance appraisal interview.
Most part of the appraisal is based on subjectivity. Negative
ratings effects interpersonal relations and industrial relations
system.
Influence of external factors and uncontrollable internal
factors.
Feedback and post performance interview must have a setback on
production.
Management emphasis on punishment rather than development of an
employee performance appraisal.
Some ratings particularly about the potential appraisal are
purely based on guess work.
Absence of inter-rater reliability. The situation was unpleasant
in feedback interviewMethods and techniques used for performance
appraisal:The various methods and techniques used for performance
appraisal can be categorized as the following traditional and
modern methods
TRADITIONAL METHODS OF PERFORMANCE APPRAISAL:1. ESSAY APPRAISAL
METHODThis traditional form of appraisal, also known as Free Form
method involves a description of the performance of an employee by
his superior. This method requires the manager to write an essay
describing each employees performance during the rating period.
This is emphases evaluation of overall performance, based on
strength\weaknesses of employees performance rather than specific
job dimension.
2. STRAIGHT RANKING METHOD
This is one of the oldest and simplest techniques of performance
appraisal. In this method, the appraiser ranks the employees from
the best to the poorest on the basis of their overall performance.
It is quite useful for a comparative evaluation.
3. PAIRED COMPARISON
A better technique of comparison than the straight ranking
method, this method compares each employee with all others in the
group, one at a time. After all the comparisons on the basis of the
overall comparisons, the employees are given the final
rankings.
4. CRITICAL INCIDENTS METHODS
In this method of performance appraisal, the evaluator rates the
employee on the basis of critical events and how the employee
behaved during those incidents. It includes both negative and
positive points. The drawback of this method is that the supervisor
has to note down the critical incidents and the employee behavior
as and when they occur.
5. FIELD REVIEW
In this method, a senior member of the HR department or a
training officer discusses and interviews the supervisors to
evaluate and rate their respective subordinates. A major drawback
of this method is that it is a very time consuming method. But this
method helps to reduce the superiors personal bias.
6. CHECKLIST METHODThe rater is given a checklist of the
descriptions of the behavior of the employees on job. The checklist
contains a list of statements on the basis of which the rater
describes the on the job performance of the employees.A) Simple
checklist method.
B) Weighted checklist method.
C) Forced choice method.
7. GRAPHIC RATING SCALEIn this method, an employees quality and
quantity of work is assessed in a graphic scale indicating
different degrees of a particular trait. The factors taken into
consideration include both the personal characteristics and
characteristics related to the on-the-job performance of the
employees. For example a trait like Job Knowledge may be judged on
the range of average, above average, outstanding or
unsatisfactory.
8. FORCED DISTRIBUTIONTo eliminate the element of bias from the
raters ratings, the evaluator is asked to distribute the employees
in some fixed categories of ratings like on a normal distribution
curve. The rater chooses the appropriate fit for the categories on
his own discretion.9. CONFIDENTIAL REPORT:Assessing the employee
performance confidentially in a traditional method of performance
appraisal. Under this method, the superior appraise the performance
of his subordinates based on his observations, the judgment and
intuitions. The superior keeps his judgment and report
confidentially in performance. The superior writes the reports
about his subordinates strengths, weakness, intelligence, attitude
to work ,sincerity, commitment, punctuality, attendance, conduct,
character ,friendliness etc. most of the public sector
organizations follow the same method.10. GROUP APPRAISAL:Under this
method, an employee is appraised by a group of appraisers. This
group consists of immediate supervisors of the employee to other
supervisors who have close contact with the employees work, manager
or head of the department and consultant. The head of the
department or management may be the chairman of the group and the
immediate supervisor may act as the coordinator for the group
activities. The group uses any one or multiple techniques, this
method is widely used for the purpose of promotion, demotion and
retrenchment appraisal. MODERN METHODS OF PERFORMANCE
APPRAISAL:
1. BEHAVIORALLY ANCHORED RATING SCALESBehaviorally Anchored
Rating Scales (BARS) is a relatively new technique which combines
the graphic rating scale and critical incidents method. It consists
of predetermined critical areas of job performance or sets of
behavioral statements describing important job performance
qualities as good or bad (for e.g. the qualities like
inter-personal relationships, adaptability and reliability, job
knowledge etc). These statements are developed from critical
incidents.
In this method, an employees actual job behavior is judged
against the desired behavior by recording and comparing the
behavior with BARS. Developing and practicing BARS requires expert
knowledge.2. HUMAN RESOURCE ACCOUNTING METHODHuman resources are
valuable assets for every organization. Human resource accounting
method tries to find the relative worth of these assets in the
terms of money. In this method the Performance appraisal of the
employees is judged in terms of cost and contribution of the
employees. The cost of employees include all the expenses incurred
on them like their compensation, recruitment and selection costs,
induction and training costs etc whereas their contribution
includes the total value added (in monetary terms). The difference
between the cost and the contribution will be the performance of
the employees. Ideally, the contribution of the employees should be
greater than the cost incurred on them.3.360 DEGREE FEEDBACKS:360
degree feedback, also known as 'multi-rater feedback', is the most
comprehensive appraisal where the feedback about the employees
performance comes from all the sources that come in contact with
the employee on his job.
360 degree respondents for an employee can be his/her peers,
managers (i.e. superior), subordinates, team members, customers,
suppliers/ vendors - anyone who comes into contact with the
employee and can provide valuable insights and information or
feedback regarding the on-the-job performance of the employee.
360 degree appraisal has four integral components:
1. Self appraisal
2. Superiors appraisal
3. Subordinates appraisal
4. Peer appraisal 4. MANAGEMENT BY OBJECTIVESThe concept of
Management by Objectives (MBO) was first given by Peter Drucker in
1954. It can be defined as a process whereby the employees and the
superiors come together to identify common goals, the employees set
their goals to be achieved, the standards to be taken as the
criteria for measurement of their performance and contribution and
deciding the course of action to be followed.
The essence of MBO is participative goal setting, choosing
course of actions and decision making. An important part of the MBO
is the measurement and the comparison of the employees actual
performance with the standards set. Ideally, when employees
themselves have been involved with the goal setting and the
choosing the course of action to be followed by them, they are more
likely to fulfill their responsibilities. 5. ASSESSMENT
CENTRES:Assessment centre refers to a method to objectively observe
and assess the people in action by experts or HR professionals with
the help of various assessment tools and instruments. Assessment
centers simulate the employees on-the-job environment and
facilitate the assessment of their on-the-job performance.
An assessment centre for Performance appraisal of an employee
typically includes:
Social/Informal Events An assessment centre has a group of
participants and also a few assessors which gives a chance to the
employees to socialize with a variety of people and also to share
information and know more about the organization.
Information Sessions Information sessions are also a part of the
assessment centres. They provide information to the employees about
the organization, their roles and responsibilities, the activities
and the procedures etc.
Assignments- assignments in assessment centres include various
tests and exercises which are specially designed to assess the
competencies and the potential of the employees. These include
various interviews, psychometric tests, management games etc. All
these assignments are focused at the target job.
2.1 RESEARCH DESIGN2.1.1 Statement of the problem.This project
aims to study the performance appraisal system (by considering
certain important dimensions) followed in organizations today. The
study aims to highlight the significance of such performance
appraisal system in the corporate context. Thus the study tries to
establish the link between performance appraisal system and
organizational effectiveness.2.1.2 Objectives of the study To study
performance appraisal system in the corporate context To highlight
the significance of performance appraisal system in the corporate
context and establish the link between performance appraisal system
and organizational effectiveness.
2.1.3 Need of the study:
provide information about the performance ranks based on which
decision regarding salary fixation, confirmation, promotion,
transfer and demotion are taken based on performance appraisal in
the corporate context. provide feedback information about the level
of achievement and behavior of subordinates in the corporate
context.
To provide information which helps to counsel the
subordinate
To prevent grievances and in disciplinary activities in the
corporate context.
2.1.4 Scope of the study: To provide employees with a better
understanding of their role and responsibilities in the corporate
context. To increase confidence through recognizing strengths and
also identifying training needs to minimise weaknesses in the
corporate context. To improve working relationships and
communication between supervisors and subordinates. To increase
commitment to organizational goals and to develop employees into
future supervisors in the corporate context. To assist in personnel
decisions such as promotions or allocating rewards.2.1.5
Limitations of the study:
The study is constrained only to performance appraisal
system
The study is limited to the Bangalore city only.
Analysis of primary data is done on the assumption that the
answers given by the respondents are true and correct.
Time and Resource constraints.
2.2 RESEARCH METHODOLOGY2.2.1Type of Research:Descriptive
research: This research is the most commonly used and the basic
reason for carrying out descriptive research is to identify the
cause of something that is happening.The research is primarily
quantitative in nature. The study is based on data collected
through structured questionnaire from the respondents and
interviews conducted with the respondents.2.2.2Sampling
Technique/method:The research technique used is Random Sampling
method.
Sampling unit:
Hewlett Packard, Sonata software ltd, & Capgemini companies
has been selected as the sampling unit.
2.2.3Data collection:Data is the fact of an event. Data is the
base for every research work. The data is mainly classified into
two groups.
1) Primary data: These data are gathered for our research
purpose. This is first hand information, for this purpose a
structured type of questionnaire was designed and administered. 2)
Secondary data: Books, journals, websites etc., have been consulted
for obtaining related information, and also for crosschecking of
primary data.Tools and techniques of data collection:a. To get the
response, the questionnaire method was used.
b. The questionnaire used in this study was a structured
one.
c. Here the questions were arranged in a specific order and were
logically interconnected for the research study
d. The advantage of the structured questionnaire lies in the
reduction of bias.
e. Questionnaire containing of both open-ended questions and
close-ended questions.Contact method: Personnel interview
The respondents were contacted personally interviewed them and
collected their views, opinions and suggestions given by them.2.2.4
Sample Size:The respondents used for survey and for certain
conclusion, we used 100 respondents who are working in the
companies.
2.2.5 Sample procedure:
The study required probability method since the sample was
chosen at random. Hence the study was dealt with simple random
tool.
2.2.6 Plan of analysis:
Calculations have been done for interpretation such as
percentage, averages etc.This report has been covered with various
tables, graphs and charts obtained from sources such as
questionnaires, and personal interview etc.The data collected
through the questionnaire are organized, processed and tabulated in
order to create graph and charts to make the project
understandable.INDUSTRY PROFILEIn the early eighties, three major
trends started emerging, which revolutionized the information
technology industry. It emerged in the late 80s, as a combination
of several facets; hardware, software and communication. It became
evident that information technology had a wide range of scope
covered a variety of hardware, several operating system,
innumerable application software that facilitates development and
easies interface with the user.
IT Vision: 2020 on the national level encompassing various
technology areas. A detailed survey of key areas in major
infrastructure, advanced technologies and technologies with
socioeconomic implications was taken up. In a span of two years,
over 5000 area experts from the industry, Government, R&D
agencies and academia were brought together for a through survey of
shared opinion in select areas.
Concerted action-plans were formulated on short, medium and
long-term basis up to 2020 AD and seventeen key technology areas of
prime importance to the country were addressed; around 100
sub-sectors were covered for specific details. The exercise was
carried out in the backdrop of a complex and heterogeneous social
milieu of India and thus a country specific vision merged. The task
forces were constituted for seventeen areas. Each task was headed
by a chairperson and comprised of a go-chairperson, coordinator and
panels of experts looking at major sub-area s covered.The typical
technology forecasting techniques like brainstorming, scenario
rating, Delphi, nominal group techniques (NGT) etc Were adapted to
some extent for the exercise to bring out the vision. The
perspective/scenario reports of the panel, Delphi responses; NGT
rankings were formed as the basis to arrive at suggestions for
policy guidelines, strategies, and action plans for Government
NGOs, industry, R&D institutes and academia to realise the
vision for India 2020 AD.
1. HEWLETT- PACKARD-PROFILEHewlett-Packard Company,commonly
referred to asHP, is an American multinationalinformation
technologycorporation headquartered inPalo Alto,California, USA. HP
is one of theworld's largest information technology companiesand
operates in nearly every country. HP specializes in developing and
manufacturing computing, data storage, and networking hardware,
designing software and delivering services.HP is founded in 1939
and its first product is the resistance-capacitance audio
oscillator (HP 200A), an electronic instrument used to test sound
equipment. Over the next decade, test and measurement products from
HP win excellent acceptance among engineers and scientists.HP is a
technology company that operates in more than 170 countries around
the world. They explore how technology and services can help people
and companies address their problems and challenges, and realize
their possibilities, aspirations and dreams. They apply new
thinking and ideas to create more simple, valuable and trusted
experiences with technology, continuously improving the way their
customers live and work.
No other company offers as complete a technology product
portfolio as HP. HP provide infrastructure and business offerings
that span from handheld devices to some of the world's most
powerful supercomputer installations. HP offer consumers a wide
range of products and services from digital photography to digital
entertainment and from computing to home printing. This
comprehensive portfolio helps us match the right products, services
and solutions to our customers' specific needs.
PRODUCT PROFILEThe products of Hp Company are as follows.
Software products
Desktop and work stations Servers and storage. Handhelds and
calculators.
monitors printers
Ink. Toner and Paper
Scanner and Fax Laptop and table Pcs
2. SONATA SOFTWARE LIMITEDSonata Software Limitedis an IT
consulting and Software Services Company. Sonata is headquartered
inBangalore, India, and has offices in the US, Europe, Middle East
and the Asia Pacific region. Sonata has four development centers in
Bangalore, one in Hyderabad and two in Hanover, Germany. Sonata's
services include IT Consulting, Product Engineering Services,
Travel Solutions, Application Development, Application Management,
Managed Testing, Business Intelligence, Infrastructure Management
and Packaged Applications.
Its subsidiaries include:
Sonata Information Technology Ltd. (SITL)
Sonata Software FZ - LLC
Sonata Software GmbH
Sonata Europe Limited
TUI InfoTec GmbH
Offshore Digital Services Incorporated (ODSI).
Sonata isSEICMMLevel 5 certified. Sonata's shares are publicly
traded in Indian Stock Exchanges. Sonata is ranked in NASSCOMS TOP
20 IT Software & Service Exporters FY 20082009.Sonata Software
has also been ranked global #2 in the 2008 Top Ten ESO: Outsourced
Software Development in The Black Book of Outsourcing. Sonata has
alliances with Microsoft, IBM, SAP and Oracle. Sonatas total income
FY 20082009 was $344.26 million. The current employee strength is
2706 employees (FY 08-09).SERVICESSonata Software offers end-to-end
software solutions. Its service offerings include:
IT Consulting - SAP, Microsoft, IBM and Oracle
Travel Solutions,
Application Development,
Application Management,
Managed Testing,
Business Intelligence,
Infrastructure Management and
Outsourced Product Development.
3. CAP GEMINI PROFILE
With more than 91,000 employees, Cap Gemini is a global leader
in consulting, technology, outsourcing, and local Professional
Services.
Headquartered in Paris, Cap Gemini regional operations include
North America, Northern Europe & Asia Pacific and Central &
Southern Europe. Sogeti-Transicel is a subsidiary business
dedicated to local professional services.Cap Gemini works in
partnership with clients to develop business strategies and
technologies tailored to their unique requirements.Cap Gemini
operates in more than thirty countries worldwide.Industries that
Cap Gemini serves: Each industry has its own unique requirements
and challenges. The priorities of health care are completely
different from telecommunications and consumer products companies
face challenges that are non-existent in the oil and gas industry.
Cap Gemini has teams of industry experts who are devoted 100% to
solving problems and making advancements within their respective
industries. They have developed tools, methodologies and best
practices based on years of experience with top companies in all
major industries.
CAPGEMINI PRODUCT PROFILE
AutomotiveCap Gemini works with the worlds leading automotive
manufacturers and suppliers to sustain growth in a highly
competitive industry. Consumer Products, Retail and
Distribution
We help consumer products; retail and distribution companies
grow stronger through the power of collaboration. Energy, Utilities
and Chemicals
Cap Geminis experience with energy, utility and chemical
companies around the world is truly collaboration in action.
Financial Services
As one of the worlds foremost service providers to the financial
services industry, Cap Gemini brings the power of both traditional
experience and a modern collaborative approach to bear on our
clients' business issues. Manufacturing
The Manufacturing Revolution - From economic challenge to
revenue growth, Cap Gemini helps clients to navigate an
increasingly dynamic marketplace. Public Sector
Cap Gemini is leading the way in government and public sector,
creating solutions for the 21st century and anticipating trends.
Telecom, Media & EntertainmentMaximizing assets and unleashing
growth - Cap Geminis global Telecom, Media & Entertainment
(TME) group is dedicated to helping companies achieve strategic
goals and world-class results in an environment of increasing
opportunity.Table No 1- Showing the response towards the Awareness
of the Performance appraisal system.SI NOPARTICULARSNO.OF
RESPONDENTSPERCENTAGE
1YES9797%
2NO33%
TOTAL100100%
Analysis: From the above table out of 100 respondents 97% of the
employees are aware of the performance appraisal system and 3% of
the employees are not aware.Graph No 1- Showing the response
towards the awareness of the performance appraisal system.
Source: primary dataInterpretation:From the above graph it can
be interpreted that the employees are well aware of the performance
appraisal system followed in the company. Table No 2- Showing the
level of satisfaction towards the performance appraisal system.SI
NOPARTICULARSNO.OF RESPONDENTSPERCENTAGE
1Fully satisfied1010%
2Partially satisfied8080%
3Not satisfied at all1010%
Total100100%
Analysis: The above table shows that 80% of the employees are
partially satisfied with the PAS followed, only 10% of the
employees are fully satisfied where as another 10% of the employees
responded that they are not at all satisfied with the PAS followed
in the company.Graph No 2-showing the response towards the level of
satisfaction.
Source: primary data
Interpretation: This shows that the present performance
appraisal system is satisfactory to some extent. Further
improvement in the system can be made in order to attain full
satisfaction of the employees/executives of the companyTable No 3-
Showing the response about the importance of Self AppraisalSI
NOPARTICULARSNO.OF RESPONDENTSPERCENTAGE
1YES8787%
2NO1313%
TOTAL100100%
Analysis: From the above table out of 100 respondents 87% of the
employees are in the opinion that the self appraisal is relevant as
part of performance appraisal and 3% of the employees are not in
the opinion.Graph No 3- Showing the response towards the importance
of Self Appraisal
Source: primary dataInterpretation:From the above graph it can
be interpreted that the self appraisal is relevant as part of
performance appraisal.Table No 4- Showing the response about the
Knowledge of Traits/Attributes.SI NOPARTICULARSNO.OF
RESPONDENTSPERCENTAGE
1YES8282%
2NO1818%
TOTAL100100%
Analysis: This issue analyzes the awareness about the
Traits/Attributes contained in the Appraisal system. 822% of the
respondents say they are completely aware of the traits based on
which they are appraised. But 18% of the respondents answered that
they are not aware of all the different traits.Graph No 4- Showing
the response towards awareness about different traits.
Source: primary dataInterpretation:From the above graph it can
be interpreted that the managements effectively inform the
appraisee about the traits contained in the appraisal formats.Table
No 5- Showing the knowledge about reviewing officers.
SI NOPARTICULARSNO.OF RESPONDENTSPERCENTAGE
1Yes9595%
2No55%
Total100100%
Analysis: From the above table out of 100 respondents 95% of the
respondents are know about their reporting officers and 5% are dont
know. Graph No 5 Showing the response towards knowledge about
reviewing officers.
Source: primary dataInterpretation: From the above graph it can
be interpreted that the employees are aware of their Reporting
officers.Table No 6
Showing the response towards the review of present performance
appraisal system.
SI NOPARTICULARSNO.OF RESPONDENTSPERCENTAGE
1Yes6565%
2No3030%
3Cant say55%
Total100100%
Analysis: From the above table out of 100 respondents 65% of the
respondents sense that the present appraisal system should be
reviewed, where as 30% of the respondents are satisfied with the
present PAS, 5% didnt give any view. Graph No 6 Showing the
response towards the review of performance appraisal system
Source: primary data
Interpretation: It can be said that many employees are not
contented with the present PAS and consequently experience the need
for the restoration of the system.Table No 7- Showing response
towards how frequently performance appraisal can be done.SI
NOPARTICULARSNO.OF RESPONDENTSPERCENTAGE
1I Year4646%
26 months2222%
33 months3232%
Total100100%
Analysis: From the above table out of 100 respondents 46%
employees agreed that performance appraisal can be done once in a
year and for 22% employees are in the opinion that it can be done
in every 6 months and for 32 % of the employees agreed that
performance appraisal can be done in every 3 months.Graph No 7-
Showing the response towards frequently of performance
appraisal
Source: primary dataInterpretation:From the above graph it can
be interpreted that the many employees prefer annual performance
appraisal system.Table No 8- showing the influences of Performance
Appraisal according to the Employees perspectiveSI
NOPARTICULARSNO.OF RESPONDENTSPERCENTAGE
1Promotions 5858%
2Salary 3939%
3Retention/Termination 1212%
4Recognition of individual performance6363%
5Identification of Poor
Performers3232%
Total100100%
Analysis: From the above table out of 100 respondents 58% of the
employees agreed that performance appraisal system helps in
promotions, and for 39 of the employees agreed that it helps in
salary, for 12% of the employees agreed that it helps in retention,
and for 63% of the employees agreed that it helps in Recognition of
individual performance, and for 32% of the employees agreed that it
helps in identification of poor performers.Graph No 8- Showing the
response towards application of performance appraisal.
Source: primary data
Interpretation: From the above graph it can be interpreted that
the Performance appraisal influences promotions and also aids in
recognition of individual performances.Table no 9-
Showing the response towards the appraiser in the
organisation.SI NOPARTICULARSNO.OF RESPONDENTSPERCENTAGE
1Peers4747%
2subordinates2828%
3Client or outsiders1111%
4Self appraisal1414%
Total100100%
Analysis: From the above table out of 100 respondents 47% of the
respondents are rated by peers. While 28% of the employees are
appraised by subordinates and 11% of the respondents by clients and
11% of the respondents are appraised by self.Graph no-9- Showing
the response towards the appraiser in the organization.
Interpretation:From the above graph it can be interpreted that
most of the employees are rated by peers and rest of the employees
are rated by subordinates, client and few people are rated by
self.
Table No 10- showing the response about the techniques of
evaluation used by the company.SI NOPARTICULARSNO.OF
RESPONDENTSPERCENTAGE
1Graphic rating scale2020%
2360 degree performance feedback2020%
3BARS3030%
4Paired comparison00
5MBO2020%
6If any other1010%
Total100100%
Analysis: From the above table out of 100 respondents 20% of the
employees are agreed that Graphic rating scale is one of the method
used by the company for doing evaluation and other 20% of the
employees preferred 360 degree performance feedback and other 30%
of the employees rated BARS and other 10% of the employees agreed
MBO and only 10% of the employees preferred other methods of
evaluation.Graph No. 10- showing the response towards appraisal
system followed in the company.
Source: primary data
Interpretation:From the above graph it can be interpreted that
the MBO and BARS are preferred techniques of evaluationTable No.
11- Showing the response towards the problems while doing
evaluation.SI NOPARTICULARSNO.OF RESPONDENTSPERCENTAGE
1A00
2B2020
3C00
4D8080
5E00
Total100100%
Analysis: From the above table out of 100 respondents 20% of the
employees are in the opinion that leniency is a problem which is
encountered during the evaluation and other 80% of the employees it
is the recent performance errors.Graph No 11 Showing the response
towards the problems while doing evaluation.
Source: primary data
Interpretation:From the above graph it can be interpreted that
the employees agreed that recent performance effects does effect
the evaluation procedureTable No12- Showing the response towards
the Training needs identified through the Performance AppraisalSI
NOPARTICULARSNO.OF RESPONDENTSPERCENTAGE
1A7070%
2B1515%
3C1515%
Total100100%
Analysis: From the above table out of 100 respondents 70% of the
employees are in the opinion that the training needs identified
through the performance appraisal is formulated into a training
programme and for 15% of the employees it is not considered for
training and for other 15% employees it is dont know.Graph No 12
Showing the response towards the Training needs identification.
Source: primary dataInterpretation:From the above graph it can
be interpreted that the management is effective in recognizing the
training needs and then incorporating the needs into an appropriate
training programme.Table No 13 Showing the response towards the
sufficiency of help and guidance provided by Reporting/Reviewing
officers.SI NOPARTICULARSNO.OF RESPONDENTSPERCENTAGE
1Highly sufficient 3838%
2sufficient 5555%
3Insufficient66%
4Highly insufficient 11%
Total100100%
Analysis: From the above table out of 100 respondents 38% of the
employees are in the opinion that help and guidance provided to
them by their reporting/reviewing officers is Highly sufficient,
and for 55% it is sufficient, and for 6% of the employees it is
insufficient and for only one employee it is highly
insufficient.Graph 13-
Source: primary dataInterpretation:From the above graph it can
be interpreted that the Help and guidance provided to employees by
their reporting/reviewing Officers is sufficientTable No 14 -
showing the response to the extent of closeness between Performance
Appraisal rating and the corresponding monetary benefits.
SI NOPARTICULARSNO.OF RESPONDENTSPERCENTAGE
1Highly Co-related 4242%
2Co-related 4141%
3Not related 1111%
4Dont know 66%
Total100100%
Analysis: From the above table out of 100 respondents 42% of the
employees are in the opinion that the close relationship between
their performance appraisal rating and corresponding monetary
reward is highly co-related.and for 41% it is co-related, for 11%
of the employees it is not related and for 6% of the employees are
dont know about that.Graph No 14- showing the relationship between
PA and pay.
Source: primary dataInterpretation:From the above graph it can
be interpreted that there is a high close relation between
performance appraisal and corresponding monetary reward.Table No
15- Showing the response towards the degree of mutual understanding
in work relationships with the employees Superior.SI
NOPARTICULARSNO.OF RESPONDENTSPERCENTAGE
1Very high 4646%
2Quite high 3939%
3Quite low 1111%
4Very low 44%
Total100100%
Analysis: From the above table out of 100 respondents 26% of the
employees agreed that the degree of Mutual Understanding in their
work relationships with their supervisor is very high and for 39%
employees it is quite high and for 11% of the respondents agreed
that it is quite low and for only 4% of the employees it is very
low.Graph No 15- Showing the response towards the degree of mutual
understanding.
Source: primary dataInterpretation:From the above graph it can
be interpreted that the degree of mutual understanding in work
relationships with the employees superior is very high. Table No
16- showing the response towards conducting a feedback interview
with employees soon after the evaluationSI NOPARTICULARSNO.OF
RESPONDENTSPERCENTAGE
1Yes8080%
2No2020%
Total100100%
Analysis: From the above table out of 100 respondents 80% of the
employees agreed that the company conduct feedback interviews with
their employees soon after the evaluation and 20% of the employees
are in the opinion that the company is not providing feedback
interview.Graph No 16 showing the response towards conducting a
feedback interview soon after the evaluation.
Source: primary dataInterpretation:From the above graph it can
be interpreted that the feedback interview is provided to the
employees to improve upon their performance.Table No 17- Table
showing the response about the employees getting counseling and
training (if needed) after the performance appraisal and
feedback.
SI NOPARTICULARSNO.OF RESPONDENTSPERCENTAGE
1Yes100100%
2No00%
Total100100%
Analysis: From the above table out of 100 respondents all 100%
of the employees agreed that the employees getting counseling and
training (if needed) after the performance appraisal and feedback
to improve their performance. Graph No 17 - showing the response
towards counseling and training.
Source: primary dataInterpretation:From the above graph it can
be interpreted that the responses were very good, indicating that
all respondents agreeing to the fact that the employees are given
counseling and training.Table No 18- Showing the response towards
the overall feeling about the Performance Appraisal system.SI
NOPARTICULARSNO.OF RESPONDENTSPERCENTAGE
1A8989%
2B1111%
3C00%
4D00%
Total100100%
Analysis: From the above table out of 100 respondents 89% of the
respondents felt that the Performance appraisal is highly relevant
in the present scenario as well as provides an opportunity for
growth. Also 11% of the respondents said that the performance
appraisal is not of much value, as it doesnt help in any
enhancement. Graph No 18-
Source: primary dataInterpretation:From the above graph it can
be interpreted that the Performance appraisal is highly relevant in
the present scenario as well as provides an opportunity for
growth.LIST OF FINDINGS1. From the study it is found that 97%
employees are aware of the performance appraisal system followed in
the company.2. It is found from the study that 80% of the employees
are partially satisfied with the PAS followed in the
organization.3. From the study it is found that 87% of the
employees are satisfied with the Self-Appraisal process being
followed in the company.
4. It is found from the study that 82% of the employees are
aware of the different traits or attributes according to which they
are rated.5. From the study it is found that 95% of the respondents
are know about their reporting officers.
6. It is found from the study that 65% of the respondents agreed
that the present appraisal system should be reviewed.
7. From the study it is found that the many employees prefer
annual performance appraisal system.
8. It is found from the study that 63% of the employees agree
that performance appraisal system helps in Recognition of
individual performance.9. From the study it is found that 47% of
the employees are rated by peers.10. It is found from the study
that 30% of the employees are agreed that BARS is one of the method
used by the company for doing evaluation.RECOMMENDATIONS1) The
performance appraisal should begin by concentrating on what
employees have done well. 2) The Reporting officer must focus on
employees key effectiveness areas where he should show results.3)
The Reporting/Reviewing officer must establish objectives in terms
of an employees performance (Both short term and Long-term), which
in a way will affect the total organizational plan.4) The reporting
officer and the reviewing officers can hold discussions with the
employees and help the employee set up objectives and goals
relating to employees performance.5) The HR manager should give
continuous feedback reviews to the employees about their
performance. These feedbacks can be in the form of discussion of
the performance, performance counseling etc.6) It is desirable to
link the performance appraisal systems with employees reward and
recognition programs and the impact of PAS should be gauged on
these programs.CONCLUSIONS
From the study, it can be concluded that if, the organization
implements new performance appraisal system it may enhance
employees effectiveness. It may help in identifying his or her
strength and weakness and information the employees as to what
performance is expected from them, would go a long way in making
one stand his/her role clearly, and is expected to be more
effective on his job .Performance appraisal system in the corporate
context today seems to be highly satisfactory .Most of the
employees are satisfied with the existing system.
Performance appraisal system is found to be highly significant
in the corporate context. The researcher is able to establish link
between Performance appraisal system and organizational
effectiveness.
Significance of Performance Appraisal System in the Corporate
Context
QuestionnaireDear Employee,
I, Ramya H, student of MBA from Don Bosco Institute of
Bio-Science & Management studies Bangalore, would like to ask a
few questions as part of my MBA project. I request you to kindly
answer them honestly and accurately. I assure you that the
information given by you will be kept extremely confidential.
Thanking you in advance for your co-operation.Employee Details
a) Name:
b) Age:
c) Total number of years of experience:d) Designation held in
the company:For the questions that follow, please tick whichever
option you think is applicableQ1.Are you aware of performance
appraisal system followed in your company?
Yes [ ]
No [ ]
Q2. How satisfied are you with the present Performance Appraisal
system?
Fully satisfied [ ] Partially satisfied [ ] Not at all satisfied
[ ]Q3.In the performance appraisal system self appraisal forms a
part. Do you think it is relevant?
Yes [ ]
No [ ]
Q4.Are you aware of the different traits / attributes according
to which you are rated?
Yes [ ]
No [ ]Q5. Do you know who are your Reporting officers?Yes [
]
No [ ] Q6. Do you think the present Performance Appraisal system
should be reviewed?Yes [ ]
No [ ] Cant say [ ]
Q7.How frequently do you think can Performance Appraisal be
done?
1Year [ ] 3 Months [ ] 6 Months [ ] Q8.The performance appraisal
system helps in
a) Promotions [ ]b) Salary [ ]c) Retention/termination [ ]d)
Recognition of individuals performance [ ]e) Identification of poor
performers [ ]Q9. Who is appraiser in your organisation?
a. Your peers [ ]b. Your subordinates [ ]c. Client or outsiders
[ ]d self appraisal. [ ]Q10. Which one of the following techniques
of evaluation used by the company?a) Graphic rating scale [ ]b) 360
degree performance feedback [ ]c) BARS [ ]d) Paired comparison
method [ ]e) Management by objectives [ ]f) If any other, Please
specify-
Q11. Do the company encounter the following problems while doing
evaluation?a) Problems with standards of evaluation [ ]b) Halo
effect [ ]c) Leniency or harshness [ ]d) Central tendency errors [
]e) Recency of events errors [ ]l) Personal bias (stereo typing) [
]
Q12.The training needs identified through the performance
appraisal:
a) Are formulated into a training programme [ ]b) Not considered
for training [ ]c) Dont know [ ]Q13.Help and guidance provided to
you by your reporting/reviewing Officers is-Highly sufficient [ ]
Insufficient [ ]
Sufficient [ ] Highly insufficient [ ]Q14.The close relationship
between your performance appraisal rating and corresponding
monetary reward is
Highly co-related [ ] Not related [ ]
Co-related [ ] dont know [ ]
Q15.The degree of Mutual Understanding in your work
relationships with your supervisor-1-Very High [ ] 2-very low [
]
3-Quite High [ ] 4-Quite Low [ ]
Q16. Do the company conduct feedback interviews with their
employees soon after the evaluation?Yes [ ]
No [ ] 17. After the Performance Appraisal and feedback, do the
employees get counseling and Training, if needed to improve their
performance in future?
Yes [ ]
No [ ] Q18.What is your overall feeling about the Performance
Appraisal system?
a) Highly relevant in the present economic scenario and provides
an opportunity for growth.
b) Not of much value as it does not help in any enhancement in
performance.
c) Is of no significance in the present scenario not growth
oriented.d) Highly irrelevant, does not help the individual or the
company. Thank You Very Much!!!BIBLIOGRAPHY
TEXT BOOKS:
1. Human Resource Management and Personnel Management by
Ashwathappa, 3RD Edition TATA McGraw-Hill.2. Human Resource
Management and Industrial Relations by Subba Rao, 2nd Edition,
Himalaya Publishing House. 3. Personal Management and Industrial
Relations by Paul Yoder and Paul D S4. WEBSITES:
www.performance-appraisal.comwww.sonata-software.comhttp://www.wikipedia.org.
www.hrguide.comwww.capgemini.com
Performance appraisal
Traditional method
Modern method
Essay method.
Straight ranking method.
Paired comparison method.
Critical incident method.
Field review method.
Checklist method.
Graphic rating scale.
Forced distribution method.
Management by objective.
360 degree appraisal.
Assessment center.
Behavioral anchored rating scale.
Human resource accounting.
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