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    Summer

    Project

    Report

    Submitted in partial fulfillment of the requirements for the Award of the Degree of

    MASTER OF BUSINESS ADMINISTRATION

    Submitted By

    SANJEEDA

    REG NO: MA90599

    Under the guidance ofMR. SATYANARAYANAN

    NEW COLLEGE INSTITUTE OF MANAGEMENT

    (Affiliated to University of Madras)

    #87, Peters road, Royapettah,

    Chennai - 600 014.

    NEW COLLEGE INSTITUTE OF

    MANAGEMENT

    1

    A Study on Performance Appraisal System in

    L.M.S.GANI MOHAMED & COMPANY

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    NEW COLLEGE INSTITUTE OF MANAGEMENT

    (Affiliated to University of Madras)

    #87, Peters road, Royapettah, Chennai - 600 014.

    April-2010

    BONAFIDE CERTIFICATE

    This to certify that the project work entitled A STUDY ON PERFORMANCE

    APPRASIAL SYSTEM L.M.S.GANI MOHAMED & CO is a bonafide work done by

    SANJEEDA in partial fulfillment of the requirement for the award of Master of Business

    Administration by Madras University during the academic year 2009-2011.

    GUIDE HEAD OF THE

    DEPARTMENT

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    DECLARATION

    I, SANJEEDA (Reg. no: MA90599) Bonafide student of Business Studies, New

    College Institute of Management, affiliated to University of Madras hereby declare that

    Project entitled A STUDY ON PERFORMANCE APPRAISAL SYSTEM was

    prepared towards the partial fulfillment of Master of Business Administration (M.B.A)

    final year Degree course from the University of Madras. The report was prepared by my

    own effort and it has not been produced earlier towards the award of any other degree or

    diploma from the same university.

    PLACE : Signature

    DATE :

    (SANJEEDA)

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    ACKNOWLEDGEMENT

    First and foremost, I am very thankful to the Lord Almighty for having best owned

    upon his grace, without which I would not have got the strength to complete my course.

    I express my gratitude to, Mr. BALASUBRAMANIYAN Director New College

    Institute of Management.

    My special thanks to my college Principal Dr. C KALEEMULLAH for extending

    me moral support during the course of this work

    It is a very great pleasure to thank my internal guide,

    Mr.SATYANARAYANAN for his valuable suggestion, encouragement &

    unceasing help rendered to me. It has been an honor & pleasure to work under him.

    I also express my gratitude & respect to all faculty members of Department of

    Management Studies for having encouraged me throughout the training & preparation of

    the report.

    I wish to place my performed gratitude & indebtness to Mr. G.M.SHEIK

    Managing Director, of L.M.S.GANI MOHAMED & CO CHENNAI for granting me to

    undergo my training at this prestigious company.

    I thank my external guide Mr. V.RAJA MOHAN Asst manager HR Dept

    L.M.S.GANI MOHAMED & CO for his immerse help and support rendered on me

    during my project. I also express my gratitude & respect to all the staff members ofL.M.S.GANI MOHAMED & CO CHENNAI.

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    CONTENT

    CHAPTER 1

    1.1 Introduction

    1.2 Objectives of the study

    1.3 Scope of the study

    1.4 Limitation of the study

    1.5 Research Methodology

    1.6 Operational definition of the concept

    1.7 Learnings in the Executive training

    1.8 Awards/ Rewards received during the E.T

    CHAPTER 2

    2.1 Company Profile

    CHAPTER 3

    3.1 Human Resource Development (Performance Appraisal)

    3.2 Bell Shaped Curve

    CHAPTER 4

    4.1 Data Analysis

    4.2 Interpretations and findings

    4.3 Suggestions

    4.4 Recommendations

    4.4 Conclusions

    4.5 Bibliography

    4.6 Questionnaires

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    CHAPTER I

    INTRODUCTION

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    In the so highly competitive and rapidly changing environment to

    survive the companies need well trained and skilled worker. India is a

    very rich country in the term of resources, weather natural or technical

    and scientific .But it is very sad to state that India, till now, has not

    perfectly learnt how to develop its man power and tap its human

    resources for the betterment of its citizenry and business goal.

    For summer training I got an opportunity to do my summer

    training in L.M.S GANI MOHAMED & CO because it is one of the

    biggest, well established and renowned in its field and serious about

    training its worker and intent to make it understood that they really

    care for them.

    OBJECTIVES OF STUDY

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    To understand the Performance Appraisal activities of L.M.S. GANI

    MOHAMED & CO.

    To find out if the Performance Appraisal activities help the employee

    in his performance.

    Take the response of employees towards the Performance Appraisal

    activities carried on upon them.

    SCOPE OF THE STUDY

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    The topic chosen Performance appraisal was aimed for the betterment

    of the organization in terms of quality as well as quantity. The scope of

    the study under mentioned points depicts the same.

    1. To increase the productivity by increasing the level of performance.

    2. The programme would help the organization in meeting it future

    personal need.

    3. The programme will help the employee in their personal group by

    improving their knowledge as well as skill.

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    LIMITATIONS OF THE STUDY

    1. Lack of expertise trainer handed in the prosecution of Performance

    Appraisal programme.

    2. Lack of feeling in people of against the awareness for the

    Performance Appraisal programme.

    3. Search for the exact Appraisal was also difficult to define.

    4. The employees are very busy in their work. So it is not possible to

    set at complete information from them.

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    RESEARCH METHODOLOGY

    RESEARCH METHODOLOGY

    Research methodology helps in solving the research problem i.e. it is a

    way of systematically solve the research problem. It may be understood as a science of

    studying how research is done scientifically. It contains various steps that are generally

    adopting by a researcher in studying his research problem along with the logic being

    them.

    Research Method Adopted

    Descriptive research has been adopted for this study. Descriptive research

    includes survey and fact-findings by consulting the respondents through questionnaire in

    a direct interview.

    Descriptive research design is used to find suggestions for the research

    problems. It is rigid and formal. Descriptive study provides clear specification of who,

    what, where, why and show respects of the research. It includes also the involved more

    specific hypothesis and testing of them through statistical inference technique.

    Data Collection Method

    Most of the study is based on the primary data. The primary data refers to

    fresh data collected for the study by the researcher with own personal effort. The needed

    primary data is collected through survey method by the way of questionnaire. The

    secondary data has been collected through the various records, documents and others.

    Research Instrument

    A questionnaire is a format list of questions to be answered in the survey.

    A structured questionnaire is the research instrument. Likert type scale are developed by

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    utilizing the item analysis approach where in a particular items is evaluated on the basis

    of how well it discriminates between those persons whose total score is high and those

    whose score is low.

    Sampling Design

    The survey adopted was area sampling. Area sampling design constitutes

    geographical clusters. Area sampling is less expensive than most other probability

    sampling designs, and it is not dependent on a population frame. It is useful for decisions

    relating to particular location.

    Sample Size

    The sample size is of 50 employees, fromL.M.S.GANI MOHAMED & CO.

    STATISTICAL TOOLS TO BE USED FOR ANALYSIS

    PERCENTAGE METHOD

    Percentage refers to a special kind of ration. Percentages are used in

    making comparison between two or more series of data. They are used to describe

    relationship. Moreover percentage can also be sued to compare the relative turns, the

    distributors of two or more series of data.

    No. of respondentsPercentage of respondents = -----------------------------x 100Total respondents

    CHART

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    Column Chart

    Pie Chart

    OPERATIONAL DEFINITION OF THE

    CONCEPT

    PERFORMANCE APPRAISAL SYSTEM

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    Performance appraisal is a process of evaluating employee

    performance for the

    Purpose of placements, selections for promotions, career planning,

    financial rewards, motivation etc, and performance appraisal seeks to

    achieve following objective.

    To assess the performance, personal attributes and potential of the

    employee.

    Performance based rewards in terms of promotion, increments etc.

    To identify training needs.

    To assess strengths, areas of improvements and give feedback to

    the employee.

    PERFORMANCE APPRAISAL PROCESS

    1. HR to prepare the Appraisal Form of individual employee to be

    appraised and send it to concerned Reviewing Officer/HOD.

    2. Reviewing Authority/HOD will arranged distribution of form to

    individual employee

    Through Appraising Officer/S.H.

    3. Employee shall fill his part in the Appraisal form in the appraisal

    form and shall hand over the same to Reviewing Officer/S.H.

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    CHAPTER II

    COMPANY PROFILE

    L.M.S Gani Mohamed &CO.,

    Chennai, Tamil Nadu, India

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    Leather Products - Manufacturer, Export / Import,Proprietorship Firm Since 1980India based L.M.S. Gani Mohamed &CO., is a globally respected namein the manufacture and export of finished leather and leather shoeuppers.

    L.M.S. Gani Mohamed & CO. was founded in the early 1980 by Mr.G.M.Sheik with a dream to mature into a leading player in the Indianleather industry. From a humble beginning the company has reallygrown from strength to strength to emerge as a part a core group thatcommands a respectable turnover.The company has bloomed from its infancy to the repute of today inthe industry, thanks to the superlative guidance from Mr. G.M.Sheikwho has more than 25 years of experience in the industry. Thiscompany is a globally recognized name in the manufacture and export.The company caters to the demands of the full chrome goat suedemarket. A history of supplying to the leading companies will justify our

    claims to excellence.With forays into discerning overseas markets in Italy, Germany,France ,Australia ,Honk Kong ,USA and Spain we have successfullylived up to the expectations of the global buyers who accept nothingbut the best. Farida Leather has established a strong network of supplychain for sourcing of Finished Leather, Leather Shoes and Leather ShoeUppers of international renown.This company has 2 tanneries in Ranipet and 1 shoe unit in Thiruvallamthat all equipped with all the needed machineries and importedtechnology for working towards one goal untidily: QUALITYProducts:

    Manufacturers and Exporters of Finished Leather, Leather Shoes,Leather Garments and Leather Shoe Uppers. Finished Leathers:- Fullchrome goat Glazed Kid , Full chrome Nappa Kid, Full chrome VelvetKid Full chrome Kashi Kid, Full chrome Metallic Kid, Full chrome Foil Kid,Full chrome Glazed Milled, Full chrome Shoe Suede, Semi chromeGlazed Kid, Semi chrome Glazed Milled, Semi chrome Shoe Suede,Garment Leathers:- Full chrome Goat Garment Suede, Full chromeNappalan, Full chrome Nappa, Full chrome Garment Article, Fullchrome Sheep Nappa, Semi chrome Goat Garment Suede

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    CHAPTER III

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    HUMAN RESOURCE DEVELOPMENT

    Performance appraisal

    Company considers its human resources as the most valuable

    resources for its growth & development. Performance appraisal seeks

    to achieve the following.

    1. To set realistic & challenging targets/ key performance area on

    annual basis for the individual.

    2. To assess employees performance based on person attributes. Job

    performed targets achieved/ specific achievements.

    3. To assess the strengths, weakness& potential of the employee.

    4. Performance based reward in terms of increment& promotion etc.

    Appraisal period

    Appraisal period is from April to March. Every employee is

    appraised at the end of the Appraisal period. Employees joining during

    appraisal are appraised on completion of their one year service&

    employees joining after March are appraised in next appraisal.

    Method of appraisal

    The employees performance is appraised by the

    department & sectional head in consultation with his immediate

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    supervisor on personal attributes, job performed targets achieved/

    specific achievement. Finally the appraisal is reviewed & approved by

    the review committee to ensure uniformity& objective.

    Appraisal feedback

    1.The appraisal is being discussed with the employee by the appraisee

    to.

    2. Feed back about his performance, strength& weakness employee is

    also suggested area of consolidation& improvement.

    Employees co-operation

    The appraisal system requires active because its

    effectiveness depends on realistic self assessment & positive approach

    towards the feedback.

    Training & development

    Training & development is an important aspect of the

    H.R.D. The company believes in training & development of its

    employees. To take higher responsibility and to meet the challenges of

    the individual employee is assessed by his sectional & departmental

    head in consolation with employee. In our & outstation programs are

    arranged for employees by H.R.D. on recommendation of sectional &

    departmental head.

    PERFORMANCE APPRAISAL SYSTEM

    Performance appraisal is a process of evaluating employee

    performance for the purpose of placements, selections for promotions,

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    career planning, financial rewards, motivation etc, and performance

    appraisal seeks to achieve following objective.

    To assess the performance, personal attributes and potential of the

    employee.

    Performance based rewards in terms of promotion, increments etc.

    To identify training needs.

    To assess strengths, areas of improvements and give feedback to

    the employee.

    INDIVIDUAL COMPONENTS DEFINED

    ATTRIBUTES

    There are seven specific and major attributes that

    have been broken into sub components against which ratings to be

    provided. The various attributes are explained.

    WORK PLANNING

    ABILITY TO PLAN

    ORGANISE

    EXECUTE

    MEET DEADLINES

    INTEGRITY

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    RESPONSIBILITY

    COMMUNICATION

    ARTICULATING

    PERSUASION

    SUPPORT

    CONFIDENCE

    CONCEPTUAL DEPTH

    VISION

    LONG RANGE PLANNING

    VERSATILITY

    CREATIVITY AND INNOVATION

    OVERALL BUISNESS APPROACH

    TECHNICAL BASIS appreciates the technical up gradations and the technological

    applications in the organization.

    FINANCIAL KNOWLEDGE has been appreciated of the financial ratios and

    instruments.

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    STRATEGIC PRIORITIES has appreciation of situations and strategies based on those

    situations

    CONSUMER DRIVEN has a customer friendly approach to both internal and external

    customer.

    AREAS OF STRENGTH

    As a part of the performance review discussions, the appraisee, section Head and HOD

    should individually list out three most important strengths in the appraisee, in order to

    utilize the same optimally and develop it for future productivity.

    AREAS OF IMPROVEMENT

    The appraise, section Head and the HOD should individually list out three most important

    areas requiring improvement, of the appraise. This will develop the employee in

    identifying his own development needs and make suitable learning processes to overcome

    these areas.

    KEY TRAINING AND DEVELOPMENT

    The appraisee, Section HEAD and the HOD should individually list out important

    training needs of the appraisee for him to impart his specific functions of his job

    effectively and in the manner that generates optimum output.

    This section of form can also help the Departmental Heads and the HR Manager to plan a

    training calendar for the employee and effectively conduct the same.

    RATINGS

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    Ratings in the terms are to be awarded to the individual, by his immediate superior and

    the departmental head in the specific columns. The points are given as:

    OUTSTANDING (OS)

    COMMENDABLE (CO)

    MEET EXPECTATIONS (ME)

    NEEDS IMPROVEMENT (NI)

    UNSATISFACTORY (US)

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    A

    PROJECT REPORT

    O

    25

    Scale Rating Standard Actual

    0.05 OS 3 2

    0.2 CO 12 150.5 ME 31 29

    0.15 NI 9 11

    0.1 US 6 4

    61 61

    piu stores

    12

    6

    31

    3 9

    29

    15

    2

    11

    40

    5

    10

    15

    20

    25

    30

    35

    OS CO ME NI US

    ratings

    numbers

    Standard Actual

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    MULTIPLE PURPOSES OF PERFORMANCE APPRAISAL

    General applications Specific purpose

    Developmental uses

    Identification of individual needs.

    Performance feedback.

    Determining transfers and job assignment.

    Identification of individual strengths and

    developmental needs.

    Administration uses

    Salary

    Promotion

    Retention and termination

    Reorganization of individual performance.

    Lay off

    Identification of poor performance

    Organizational

    maintenance/objective

    HR planning determining training need

    Evaluation of goal achievement

    Information of goal identification

    evaluation of HR system

    Documentation

    criteria for evaluation research

    Documentation for HR decision

    helping to meet legal requirement

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    What methods

    When to

    evaluate

    What to

    evaluate

    How to solve

    What problems

    Who are the

    partners

    Whose

    performance

    Formal v/s

    informal

    Appraisal

    design

    ISSUES IN APPRAISAL PROGRAMMES

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    PERFORMANCE APPRAISAL SYSTEM

    Performance appraisal system in any organization depends substantially on five factors

    concept, criteria, context, culture and contingency.

    Concept: - The performance dimensions are several. They include duties,

    responsibilities, behavior and traits. Performance appraisal involves at least two

    persons/parties: the appraiser (who does the appraisal) and the appraise (Whose

    performance is being appraised).

    Appraise expect Appraiser should

    To know what his duties and Prepare job descriptions

    Responsibilities are

    To know what is expected of Facilitate appraisee to set

    him and whether the expectations goals/targets

    are reasonable enough

    to know how he is doing Analyze results with appraisee

    To have appraisers help, if needed Advice, guide, coach & counsel

    Rewards to be commensurate with Reward for good results

    Performance

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    Criteria: - Several performance measures such as output, quality, punctuality, cost

    control contribution, job knowledge, discretion, initiative, team work, resourcefulness

    honestly, and leadership qualities are usually reckoned as some of the criteria against

    which performance is assessed.

    Context: - The top management philosophy values and belief system in the

    organization influence the notions about people in the organizations and the type of

    control, motivation and communication systems.

    Culture: - The cultures of people in general seem to affect appraisal system. Studies

    and commentaries on Indian organizations seem to point to a pattern where the loyalties

    of employees are more to the people than to the tasks or to organizations.

    Contingency: - There is a systematic effort to link performance appraisal to other sub-

    systems of human resource management such that all personnel decisions use the

    performance appraisal data as a critical input, it becomes difficult to impart seriousness in

    to the system. The result would be apathy on the point of both the appraiser and the

    appraisee to the entire process.

    Methods of appraisal-

    The last to be addressed in the process of designing an appraisal programmer is to

    determine method(s) of evaluation. All the approaches to appraisal can be classified

    into:-

    (i) past-oriented methods

    (ii) future oriented methods

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    Rating Scale

    Cost accounting Checklists

    Essay ForcedChoice

    Tests and ForcedObservation distribution

    Field review critical incidentBARS

    Appraisal

    methods

    Appraisal Techniques

    Different techniques are used for performance appraisal.

    They include:-

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    Methods

    Future oriented

    Appraisal by objectives Management by objectives

    Trait Appraisal

    Rating Scales &Ranking Technique 360Performance appraisal

    Simple or straight Ranking

    Forced distribution Ranking Psychological appraisals

    Paired comparison

    The critically incident method Assessment Centers

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    PAST ORIENTED APPRAISALS

    Appraisal by objectives: - The objectives for the evaluation period (usually 12 months)

    are determined through joint discussion and negotiation between the superior and

    subordinate. This system is followed even in organization which does not have a formal

    programme of Management by Objectives. Invariably, in many organizations where the

    objectives are predetermined, Key performance Areas (KPAs) or Key Result Areas

    (KRAs) are also decided in advance through joint effort.

    Confidential Report: - A confidential report is a report on the subordinate by the

    immediate superior and covers a limited range of aspects like the candidates strengths,

    weakness, major achievements or failures and information on some personality traits and

    behavior aspects. The confidential report system is usually a descriptive one and permits

    a lot of subjectivity.

    Trait Appraisal: - Commonly used individual traits include several distinguishing

    characteristics firmly anchored in human behavior that manifest themselves on the job

    and influence performance. These characteristics include the following listed below.

    Ability for sustained hard work Drive

    Acceptance of responsibility Effort

    Adaptability Efficiency

    Analytical ability Honesty

    Appearance Industriousness

    Attendance Initiative

    Attitude towards criticism Integrity

    Capacity to train Intelligence

    Commitment to task Judgment

    Communication Leadership

    Conduct Loyalty

    Confidence Motivation

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    Rating Scales :- These are techniques where performance is measured through assigning

    numbers (0 to 4, 1 to 5 or 1 to 9), (A to D or E) or words which are descriptive adjectives

    (e.g., outstanding, very good, good, fair, poor) to items or events to describe differences.

    In all rating scales, most organizations are finding it useful to have an extra column ot

    record N.A. (not applicable) or N.O.

    (Not observed) or any other comment as appropriate.

    Ranking Technique: - Ranking techniques encourage superior or peers to rank-order all

    their subordinates or peers as the case may be. This is a form of comparative

    measurement.

    Simple or straight Ranking: - This technique provides for an ordinal scoring; first,

    second, third and so on.

    Forced Distribution Ranking: - This is ranking technique where raters are required to

    allocate a certain percentage of rates to certain categories (e.g., superior, above average,

    etc.) or percentiles (e.g. Top 10%, Bottom 20% etc.) Both the number of categories and

    percentage of employees to be allotted to each category are a function of the performanceappraisal design and format.

    Paired Comparison: - This technique requires the rater to appraise which of the two

    employees is superior, instead of having to rank order all the employees in the same work

    unit doing the same job. This is widely used when one is comparing a small number of

    people.

    Narrative or Descriptive Methods: - The ongoing search for newer and better

    techniques of appraising employees performance led to several descriptive methods.

    These include the essay and the critical incident methods among others.

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    The Essay method :- In this method, the rater describes the rate in terms of several broad

    categories such as the persons strengths and weakness, major achievements and failures,

    potential training and development needs and overall performance of the rater.

    The Critical Incident method: - This method requires the rater to maintain a record of

    major observations of what he feels are work behaviors critical to the difference between

    success and failure. It provides information based on systematic observation of actual job

    performance.

    Behaviorally Anchored Rating Scales (BARS):- These are descriptions of various

    degrees of behavior relating to an aspect of performance dimension. The behaviors are

    described for a set of intervals ranging from the most negative to most positive.

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    FUTURE ORIENTED APPRAISALS

    Management by objectives: - It was peter F. Drucker who first gave the concept of

    MBO to the world way back in 1954 when his The Practice of Management was firstpublished.

    Application of MBO in the field of performance appraisal is a recent thinking.

    MBO works can be described in four steps:-

    1. To establish the goals for each subordinate that he has to attain.

    2. Involves setting the performance standard for the subordinates in a previously

    arranged time period.

    3. The actual level of goal attainment is compared with goals agreed upon.

    4. Establishing new goals and, possibly, new strategies for goals not previously

    attained.

    Psychological Appraisals: - Large organization employs full-time industrial

    psychologists. When psychologists are used for evaluations, they assess an individuals

    future potential and not past performance. The appraisal normally consists of in-depth

    interviews, psychological tests, discussions with supervisions and a review of other

    evaluations. The psychologist then writes an evaluation of the employees intellectual,

    emotional, motivational and other work-related characteristics that suggest individual

    potential and may predict future performance. From these evaluations, placement and

    development decisions may be made to shape the persons career.

    Assessment Centres:-

    An assessment Centre is a central location where managers maycome together to have their participation in job related exercises evaluated by trained

    observers. The principal idea is to evaluate managers over a period of time, say one to

    three days, by observing (and later evaluating) their behavior across a series of selected

    exercises or work samples.

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    360 Performance appraisal:

    The appraiser may be any person who has thorough knowledge about the job content,

    contents to be appraised, standards of contents, and ethos deserves the employee while

    performing a job. The appraiser should be capable of determining what is more important

    and what is relatively less important. He should prepare reports and make judgment

    without bias.

    Typical appraisers are:

    Supervisors

    Peers

    Subordinates

    Employees

    Users of services and consultants.

    Performance appraisal by all these parties is called 360performance appraisal.

    Supervisors:

    Supervisors include superiors of the employee, other supervisors having knowledge about

    the work of the employee and department head or manager. General practice is that

    immediate superiors appraise the performance, which in turn is reviewed by the

    departmental head or manager.

    This is because supervisors are responsible for managing their subordinates and they have

    the opportunity to observe, direct and control the subordinate continuously. Moreover,

    they are accountable for the successful performance of their subordinates. Sometimes

    other supervisors, who have close contact with employee work also, appraise with a view

    to provide additional information.

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    On the negative side, immediate supervisors may emphasize certain aspects of

    employee performance to neglect others. Also, managers have been known to manipulate

    evaluations to justify their decisions on pay increases and promotions. However, the

    immediate supervisor will continue to evaluate employee performance till a better

    alternative is available. Organizations no doubt, will seek alternatives because of the

    weaknesses mentioned above and a desire to broaden the perspective of the appraisal.

    Peers:

    Peer appraisal may be reliable if the work group is stable over a reasonably long period of

    time and performance tasks that require interaction. However little research has been

    conducted to determine peers establish standards for evaluating others or the overall

    effect of peer appraisal on the groups attitude. Whatever research was done on this topic

    was mostly done on military personnel at the management or pre-management

    level(officers or officer candidates) rather than on employees in business organizations.

    More often in business organizations if employees were to be evaluated by their own

    peers, the whole exercise may degenerate into a popularity contest, paving the way for the

    improvement of work relationship.

    Subordinates:

    The concept of having superiors rated by subordinates is being used in most organizations

    today, especially in developed countries. Such a novel method can be useful in other

    organizational settings where the relationship between superiors and subordinates are

    cordial. Subordinates rating in such cases can be quite useful in identifying component

    superiors. The rating in such cases can be quite useful in identifying component

    superiors. The rating of leaders by combat soldiers is an example. However, the fear of

    reprisal often compels a subordinate to be dishonest in his ratings. Though useful in

    universities and research institutions, this approach may not gain acceptance in traditional

    organizations where subordinates practically do not enjoy much discretion.

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    Self Appraisal:

    If individuals understand the objectives they are expected to achieve and standards by

    which they are to be evaluated, they are to great extent in the best position to appraise

    their own performance may become highly motivated.

    Users of services customers:

    Employee performance in service organizations relating to behaviors promptness, speed

    in doing the job and accuracy, can be better judged by the customers or users of services.

    For example, teachers performance is better judged by student and the performance of a

    conductor in passenger road transport is better judged by passengers.

    Consultants:

    Some consultants may be engaged for appraisal when employee or employers do not trust

    supervisor appraisal and management does not trust the self-appraisal or peer appraisal or

    subordinate appraisal. In this situation, consultants are trained and they observe the

    employee at work for sufficiently long time for the purpose of appraisal.

    In view of the limitations associated with each and every method discussed above, several

    organizations follow a multiple rating system wherein several superiors separately fill out

    rating forms on the same subordinates. The results are then tabulated.

    DESIGN OF AN EFFECTIVE APPRAISAL SYSTEM

    It is useful to focus on aspects such as the following so that the appraisal system can be

    effective:

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    1. Appraisal objectives and uses should be specific, clear, relevant, timely, adequate,

    open and fair.

    2. It should be an ongoing process of managing performances with employee

    actively participating and supervisor playing the role of coach and developer.

    3. The information generated should be tailored to the needs of the organization,

    performance requirements and norms of behavior.

    4. Recognize individual differences in system design. Identify the needs of rates in

    terms of feedback, mobility, Self esteem etc.

    5. The overall purpose should be developmental than judgmental. It is important to

    separate evaluation of performance and potential.

    X

    IMPLICATIONS FOR PERFORMANCE AND SATISFACTION

    Selection Practices:-

    An organizations selection practices will determine who gets hired.

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    Motivation Ability Performanceoutcome Attainment

    and job satisfaction

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    If properly designed, it will identify competent candidates and accurately match

    them to the job.

    The use of the proper selection device will increase the probability that the right

    person will be chosen to fill a slot.

    Training and Development Programs:-

    Training programs can affect work behavior in two ways.

    First Benefit

    The most obvious is by directly improving the skills necessary for the employee

    to successfully complete his/ her job. An increase in ability improves the employees potential to perform at a higher

    level.

    Second Benefit

    It increases an employees self-efficacy.

    Self-efficacy is a persons expectations that he or she can successfully execute the

    behavior required to produce an outcome.

    Performance Evaluation:-

    A major goal of performance evaluation is to assess accurately an

    individuals performance contribution as a basis for making reward allocation decision.

    If the performance evaluation process emphasizes the wrong criteria or

    inaccurately appraises actual job performance, employees will be over- or under

    rewarded.

    This can lead to negative consequences such as reduced effort, increases in

    absenteeism, or search for alternative job opportunities.

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    Reward Systems:-

    If employees perceive that their efforts will be accurately apprised and if they

    further perceive that the rewards they value are closely linked to the evaluations, the

    organization will have optimized the motivational properties from its evaluation and

    reward procedures and policies.

    We can conclude that rewards are likely to lead to high employee

    performance and satisfaction when they are

    (1) Perceived as being equitable by the employee.

    (2) Tied to performance and

    (3) Tailored to the needs of individual

    Union Management Interface:-

    The existence of a union in an organization adds another variable in our

    search to explain and predict employee behavior.

    The union has been found to be an important contribution to employees

    perceptions, attitudes, and behavior. The informal norms that union cohesiveness fosters

    can encourage or discourage high productivity, organizational commitment, and morale.

    LEARNINGS IN THE EXECUTIVE TRAINING

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    INDUCTION

    5s (Japanese Technology)

    KRA

    QUALITY CIRCLES

    COMPETANCY MAPPING

    PRACTICAL WORK ON EXCEL

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    CHAPTER IV

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    DATA ANALYSIS & INTERPRETATION

    1. Number of service years in this organization.

    44

    Question

    Less than 5

    Years

    5-10

    Years

    10-15

    years

    More

    than

    15Sample Size 50

    Employees

    42 8 0 0

    84

    16

    0

    0

    Less than 5 Ye

    5-10 Years

    10-15 years

    More than 15

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    Fig. 1.01

    Findings: The response collected is based on the period of their

    service in the organization. As company was set up in 2003 so the

    years of service in the organization of most of the employees is less

    than 5 years.

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    .

    Fig. 1.03

    Findings: Near about 60% of the employees had not aware about

    modern performance appraisal techniques.

    47

    Question Yes No

    Sample Size 50

    Employees

    30 20

    60

    40

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    4. Performance appraisal techniques make you better

    eligible for promotion, demotion, & transfer.

    QuestionAgreed Not agreed

    Sample Size 50

    Employees

    40 10

    Fig. 1.4

    Fig. 1.04

    Findings: The 80% of the respondents shows that PARs as a good

    strategy to go ahead with promotion while 40% of respondents do not

    agree with it.

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    80

    20

    Agreed

    Not agr

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    5. Do you think performance appraisal is useful or just a

    waste of time?

    Fig. 1.5

    Fig. 1.05

    Findings: More than 90% of the employees say that performance

    appraisal is useful for their self-assessment and promotions. Thus, they

    cannot ignore it. And rest of the employees thinks it as a waste of time.

    6. Proper and adequate performance appraisal plays a

    crucial role in your career development.

    QuestionYes No

    Sample Size 50

    Employees

    46 4

    49

    QuestionUseful

    Waste of timeSample Size 50

    Employees

    92 8

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    Fig. 1.06

    Findings: 92% of the responses show that Performance Appraisal

    Report helps a lot in the promotional activities

    7. Does performance appraisal report is helpful in identifying

    Training and Development need or it laid development plan

    for you?

    Question To a large

    extent

    To some

    extent

    Not at all

    Sample Size 50

    Employees

    30 15 5

    Fig. 1.7

    50

    92

    8

    Agree

    Not a

    50

    40

    10

    To a large ext

    To som e exte

    Not at all

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    Fig. 1.07

    Findings: 50% of the respondents are satisfied by the performance

    appraisal report as it helps them to understand the job profile and

    helps in training need identification.

    8. Performance appraisal is most of the time fair and

    unbiased.

    51

    QuestionAgreed Not

    agreedSample Size 50

    Employees

    42 8

    85

    15

    Agreed

    Not agre

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    Fig. 1.08

    Findings: 65 % of the respondents show that Performance Appraisal

    report is time fair & unbiased.

    9. Have you understood clearly, as to what is expecting fromyou?

    QuestionYES No Cant say

    Sample Size 50

    Employees

    20 11 19

    Fig. 1.09

    52

    40

    22

    38

    YES

    No

    Cant

    x

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    Findings: Near about 75% of the respondents, say that Organization

    provides counseling after performance appraisal report.

    11 Is 3600 technique an effective Performance appraisalsystem?

    S.No Perception % of response1 Yes 48

    2 No 28

    3 Cant say 24

    From the above figure we conclude that 48% of the respondents are

    aware of the 3600 performance appraisal process.

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    0

    10

    20

    30

    40

    50

    60

    Yes No Cant say

    % of response

    % of response

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    12 Is self appraisal technique of Performance appraisalsystem effective?

    S.No Perception % of response

    1 Yes 76

    2 No 24

    From the figure we conclude that 76% of the respondents say that

    self appraisal technique is easier to evaluate performance

    assessment process.

    55

    0

    10

    20

    30

    40

    50

    60

    70

    80

    1 2 3

    Perception

    % of response

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    13. Do you think Performance appraisal system willhelp in improving the effectiveness of the employees

    S.No Perception % of response

    1 Strongly agree 32

    2 Agree 60

    3 Disagree 8

    4 Neutral 0

    From the above figure we conclude that 60% of the respondents say

    that the performance appraisal system will help them in improving

    their effectiveness

    FINDINGS

    56

    % of response

    Strongly agree

    Agree

    Disagree

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    1. The response collected is based on the period of their service in the

    organization. As company was set up in 2003 so the years of service in

    the organization of most of the employees is less than 5 years.

    2. 80 % the employees had responded in favor of that they were aware

    about performance appraisal.

    3. Near about 60% of the employees had not aware about modern

    performance appraisal techniques.

    4. The 80% of the respondents shows that PARs as a good strategy togo ahead with promotion while 40% of respondents do not agree with

    it.

    5. More than 90% of the employees say that performance appraisal is

    useful for their self-assessment and promotions. Thus, they cannot

    ignore it. And rest of the employees thinks it as a waste of time.

    6. 92% of the responses show that Performance Appraisal Report helps

    a lot in the promotional activities.

    7. 50% of the respondents are satisfied by the performance appraisal

    report as it helps them to understand the job profile and helps in

    training need identification.

    8. 65 % of the respondents show that Performance Appraisal report is

    time fair & unbiased.

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    9. There is a close response from the respondents on Performance

    appraisal report where on one hand (near about 40%) say that it

    makes feel refreshed & know there better responsibility. On the other

    hand some say that it has helped them in improving their skills not to

    define their future responsibility and performance.

    10. Near about 75% of the respondents, say that Organization provides

    counseling after performance appraisal report.

    11. 48% of the respondents are not aware of the 3600 performance

    appraisal process.

    12. 76% of the respondents say that self appraisal technique is easier to

    evaluate performance assessment process.

    13. 60% of the respondents say that the performance appraisal system

    will help them in improving their effectiveness

    RECOMMENDATIONS/ SUGGESTIONS

    1. This situation realizes that there were 20% of the employees who

    are unaware of the performance appraisal report which will be reduced

    by providing them counseling.

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    2. They should have to be aware about the performance appraisal

    techniques because they have to pass through it for taking better

    promotions & greater responsibility.

    3. This shows there negligence towards their career & awareness.

    Thus, it can avoid by providing enough information to employee with

    the help of training & development exercise.

    4. The 20% of respondents responses shows that they are not aware

    about importance of performance appraisal report. They should be

    aware about that how they can take promotion and greater

    responsibility through better performance.

    5. They have to introduced career development graphs and necessary

    skills to reach that position after experiencing some years.

    6. Respondents should have to better understand the job responsibility

    and training need identification through schedule chart or through the

    job analysis.

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    CONCLUSION

    CONCLUSION

    It is truth that no work is completed in itself. In fact, completion of one

    job is actually the beginning of another job. Likewise, performance

    Appraisal is never ending process. It is essential for personal &

    professional development.

    This project has been considering all possible aspects mentioned in the

    project booklet. The project is made very clear and precise with the

    help of the relevant data gathered from the company, company

    website & through various annexure.

    In the concluding remark of my project report, I would like to state that

    at L.M.S.GANI MOHAMED & CO, the employees are considered as most

    valuable assets & strength for sustained growth & development of the

    company.

    They believe in investing continuously in human resource for their

    growth. The company is led by young professionals. They have an open

    work environment which is achievement oriented.

    In spite of these merits, there are some demerits also in the company

    that the goals of the company are not decided in advance and nofeedback fixed for workers and executives in L.M.S.GANI MOHAMED &

    CO

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    BIBLOGRAPHY

    BIBLOGRAPHY

    1) Human Resource Management

    By K. Aswathapa

    2) Human Resource Management

    By L. M. Prasad

    3) Human Resource Management

    By S. K. Gupta

    4) Human Resource Management

    By Robbinson

    5) Human Resource Management

    By C. B. Gupta

    6) Human Resource Management

    By C. V. Memoria

    7) Human Resource Management

    By R. Sharma

    8) Human Resource Management

    By B. Ghosh

    QUESTIONARE

    Performance Appraisal Questionnaire

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    L.M.S.GANI MOHAMED & CO

    APPENDICES

    Name:Dsignation/Post:

    Salary Grade:Qualification:

    Experience:

    (1) No. of years of service in the organization:

    (a) Less than 5 (b) 5-10(c) 10-15 (d) More than 15

    (2) Do you aware about your performance appraisal or any evaluationdone by your superior.

    (a) Yes (b) No

    (3)Are your aware about the modern techniques used in yourperformance appraisal?

    (a) Yes (b) No

    (4)Performance appraisal techniques make you better eligible forpromotion, demotion, & transfer.

    (a) Agreed ( ) (b) Not Agreed ( )

    (5)Do you think performance appraisal is useful or just a waste of time?

    (a) Useful ( ) (b) waste of time ( )

    (6)Proper and adequate performance appraisal plays a crucial role inyour career development.

    (a)Agreed ( ) (b) Not Agreed ( )

    (7)Does performance appraisal report is helpful in identifying training &development need or it laid career development plan for you?

    (a) To a large extent (b) To some extent (c) Not at all

    (8)Performance appraisal is most of the time fair and unbiased.

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    (a)Agreed ( ) (b) Not Agreed ( )

    (9)Have you understood clearly, as to what is expecting from you?

    (a) Yes (b) No

    (10)Does the organization provide counseling after appraisal?

    (a) Yes (b) No

    (11) Is 3600 technique an effective Performance appraisal system?

    (a)Yes (b)No (c) cant say

    (12) Is self appraisal technique of Performance appraisal system effective?

    (a) Yes (b) No

    (13) Do you think Performance appraisal system will help in improving the effectiveness

    of the employees?

    (a) Yes (b) No

    Any suggestions:

    .. .