INTRODUCTION

The history of performance appraisal is quite brief. Its roots in the early 20th
century. But this is not very helpful, for the same may be said about almost ev
erything in the field of modern human resources management. As a distinct and fo
rmal management procedure used in the evaluation of work performance, appraisal
really dates from the time of the Second World War - not more than 60 years ago.
Yet in a broader sense, the practice of appraisal is a very ancient art. In the
scale of things historical, it might well lay claim to being the world's second
oldest profession!
There is, says Dulewicz (1989), ".. a basic human tendency to make judgments abo
ut those one is working with, as well as about oneself." Appraisal, it seems, is
both inevitable and universal. In the absence of a carefully structured system
of appraisal, people will tend to judge the work performance of others, includin
g subordinates, naturally, informally and arbitrarily.
The human inclination to judge can create serious motivational, ethical and lega
l problems in the workplace. Without a structured appraisal system, there is lit
tle chance of ensuring that the judgments made will be lawful, fair, defensible
and accurate. Performance appraisal systems began as simple methods of income ju
stification. That is, appraisal was used to decide whether or not the salary or
wage of an individual employee was justified.
The process was firmly linked to material outcomes. If an employee's performance
was found to be less than ideal, a cut in pay would follow. On the other hand,
if their performance was better than the supervisor expected, a pay rise was in
order. Little consideration, if any, was given to the developmental possibilitie
s of appraisal. It was felt that a cut in pay, or a rise, should provide the onl
y required impetus for an employee to either improve or continue to perform well
. Sometimes this basic system succeeded in getting the results that were intende
d; but more often than not, it failed.
For example, early motivational researchers were aware that different people wit
h roughly equal work abilities could be paid the same amount of money and yet ha
ve quite different levels of motivation and performance. These observations were
confirmed in empirical studies. Pay rates were important, yes; but they were no
t the only element that had an impact on employee performance. It was found that
other issues, such as morale and self-esteem, could also have a major influence
.
Most persons share a desire to know the answer to the question, "How am I doing?
" They want to know what is expected of them, how well they are meeting the expe
ctations, how they can improve, and some want to know how they might qualify for
higher responsibilities. The process of performance appraisal should provide th
e opportunity for discussion of these concerns. The process should also provide
the basis for enhanced communication among college personnel.
The performance appraisals can have a huge impact on the future of the employee
in the company. When the feedback is provided correctly and the manager makes a
follow up of all the agreements done during the performance appraisal interview,
the performance appraisals can work without any formal documents. As the HRM Fu
nction is responsible for the performance management process, it brings new and
better performance appraisal forms every single year. And the result usually fai
ls every year. The managers and the employees do not see the benefits of partici
pating in the performance review process as they take it as an activity driven b
y Human Resources for Human Resources.
Definition of Performance Appraisal
According to Flippo, "performance appraisal is the systematic, periodic and an i
mpartial rating of an employee’s excellence in the matters pertaining to his prese
nt job and his potential for a better job”.
“Appraisal is a process that provides an analysis of a Person’s overall capabilities
and potential, allowing informed decisions to be made for particular purposes”. A
n Important part of the process is assessment, whereby data on an individual’s pas
t and current work behavior and Performance are collected and reviewed.
Concepts
Typically, performance appraisal has been limited to a feedback process between
employees and supervisors. However, with the increased focus on teamwork, employ
ee development, and customer service, the emphasis has shifted to employee feedb
ack from the full circle of sources depicted in the diagram below. This multiple
-input approach to performance feedback is sometimes called “360-degree assessment”
to connote that full circle. There are no prohibitions in law or regulation agai
nst using a variety of rating sources, in addition to the employee’s supervisor, f
or assessing performance.
Research has shown assessment approaches with multiple rating sources provide mo
re accurate, reliable, and credible information.
For this reason, the U.S. Office of Personnel Management supports the use of mul
tiple rating sources as an effective method of assessing performance for formal
appraisal and other evaluative and developmental purposes. The circle, or perhap
s more accurately the sphere, of feedback sources consists of supervisors, peers
, subordinates, customers, and one’s self. It is not necessary, or always appropri
ate, to include all of the feedback sources in a particular appraisal program.

• SUPERIORS/MANGERS
Evaluations by superiors are the most traditional source of employee feedback. T
his form of evaluation includes both the ratings of individuals by supervisors o
n elements in an employee’s performance plan and the evaluation of programs and te
ams by senior managers.
• SELF-ASSESSMENT
This form of performance information is actually quite common but usually used o
nly as an informal part of the supervisor-employee appraisal feedback session. S
upervisors frequently open the discussion with: “How do you feel you have performe
d?” In a somewhat more formal approach, supervisors ask employees to identify the
key accomplishments they feel best represent their performance in critical and n
on-critical performance elements. In a 360-degree approach, if self-ratings are
going to be included, structured forms and formal procedures are recommended.
• PEERS
With downsizing and reduced hierarchies in organizations, as well as the increas
ing use of teams and group accountability, peers are often the most relevant eva
luators of their colleagues’ performance. Peers have a unique perspective on a co-
worker’s job performance and employees are generally very receptive to the concept
of rating each other. Peer ratings can be used when the employee’s expertise is k
nown or the performance and results can be observed. There are both significant
contributions and serious pitfalls that must be carefully considered before incl
uding this type of feedback in a multifaceted appraisal program.
• SUBORDINATES
An upward-appraisal process or feedback survey (sometimes referred to as a SAM,
for “Subordinates Appraising Managers”) is among the most significant and yet contro
versial features of a “full circle” performance evaluation program. Both managers be
ing appraised and their own superiors agree that subordinates have a unique, oft
en essential, perspective. The subordinate ratings provide particularly valuable
data on performance elements concerning managerial and supervisory behaviors. H
owever, there is usually great reluctance, even fear, concerning implementation
of this rating dimension. On balance, the contributions can outweigh the concern
s if the precautions noted below are addressed.
• CUSTOMERS
Executive Order 12862, Setting Customer Service Standards, requires agencies to
survey internal and external customers, publish customer service standards, and
measure agency performance against these standards. Internal customers are defin
ed as users of products or services supplied by another employee or group within
the agency or organization. External customers are outside the organization and
include, but are not limited to, the general public.

OBJECTIVES OF PERFORMANCE APPRAISAL

Data relating to performance assessment of employees arc recorded, stored. And u

sed for seven purposes. The main purposes of employee assessment are:
1) To effect promotions based on competence and performance.
2) To confirm the services of probationary employees upon their completing
the probationary period satisfactorily.
3) To assess the training and development needs of employees.
4) To decide upon a pay raise where (as in the unorganized sector) regular
pay scales have not been fixed.
5) To let the employees know where they stand insofar as their performance
is concerned and to assist them with constructive criticism and guidance for the
purpose of their development.
6) To improve communication. Performance appraisal provides a format for di
alogue between the superior and the subordinate, and improves understanding of p
ersonal goals and concerns. This can also have the effect of increasing the trus
t between the rater and the ratee.
Broadly, performance appraisal serves four objectives-
i. Developmental uses,
ii. Administrative uses/decisions,
iii. Organizational maintenance/objectives, and
iv. Documentation purposes.
.
Pre-requisites for Effective & Successful Performance Appraisal
 The essentials of an effective performance syst
em are as follows:
• Documentation – means continuous noting and documenting the performance. It also h
elps the evaluators to give a proof and the basis of their ratings.
• Standards / Goals – the standards set should be clear, easy to understand, achieva
ble, motivating, time bound and measurable.
• Practical and simple format - The appraisal format should be simple, clear, fair
and objective. Long and complicated formats are time consuming, difficult to un
derstand, 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 eval
uation should be based on observable and measurable characteristics of the behav
ior of the employee.
• Communication – Communication is an indispensable part of the Performance appraisa
l process. The desired behavior or the expected results should be communicated t
o 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 the feedback should be developmental rather than judgmen
tal. To maintain its utility, timely feedback should be provided to the employee
s and the manner of giving feedback should be such that it should have a motivat
ing effect on the employees’ future performance.
• Personal Bias – Interpersonal relationships can influence the evaluation and the d
ecisions in the performance appraisal process. Therefore, the evaluators should
be trained to carry out the processes of appraisals without personal bias and ef
fectively.
Benefits of Appraisal
People are one of a company s most valuable assets. While most assets depreciate
over time, people, viewed as assets, may actually appreciate. One of the manage
r s major responsibilities is to improve and update the knowledge and skills of
employees -- appreciation of assets. Performance appraisal plays a significant r
ole as a tool and technique of organizational development and growth. In essence
, effective appraisal systems provide both evaluation and feedback.
The main aim of the evaluation is to identify performance gaps -- when performan
ce does not meet the organizational standards -- whereas feedback is necessary t
o inform employee about those performance gaps.
From the employee s perspective, performance appraisal informs them about what i
s required of them in order to do their jobs, it tells them how well they have a
chieved those objectives and helps them take corrective action to improve their
performance, and, finally, it may reward them for meeting the required standards
.
The firm, on the other hand, needs a performance appraisal system in order to es
tablish principles of managerial accountability. Clearly, where employees are gi
ven responsibilities and duties, they need to be held accountable. One of the fu
nctions of performance appraisals is to ensure that people are accountable for t
heir organizational responsibilities.
Perhaps the most significant benefit of performance appraisals is the opportunit
ies they provide supervisors and subordinates to have one-on-one discussions of
important work issues. During appraisals, subordinates and supervisors can focus
on work activities and goals, identify and correct existing problems, and encou
rage better future performance.
Performance Appraisal and Motivation
Motivational research has recognized the power of recognition as an incentive (
see Maslow and the Expectancy Theory of Motivation). Performance appraisals prov
ide employees with recognition for their work efforts. The appraisal system pro
vides the supervisor with an opportunity to indicate to employees that the organ
ization is interested in their performance and development. This recognition can
have a positive motivational influence. on the individual s sense of worth, com
mitment and belonging.
Performance Appraisal and Training and Development
Performance appraisals identify performance gaps. As such, they provide an excel
lent opportunity for a supervisor and subordinate to recognize and agree upon in
dividual training and development needs.
Performance appraisal discussion may identify the presence or absence of work sk
ills. Further, the need for training can be made more relevant if attaining the
requisite job skills is clearly linked to performance outcomes. Consolidated app
raisal data can also help form a picture of the overall organizational training
requirements.

Performance Appraisal and Recruitment

Recruitment and selection procedures need to be evaluated. Appraisal data can be
used to monitor the success of a firm s recruitment and selection practices. Fr
om this data, the firm can determine how well employees who were hired in the pa
st are performing.
Performance Appraisal and Employee Evaluation
Employee evaluation is a major objective of performance appraisal. Given the maj
or functions of management -- planning, organizing, leading and controlling -- i
t is clear that evaluations (controlling) need to be done.
At its most basic level, performance appraisal is the process of examining and e
valuating the performance of employees. However, the need to evaluate is also a
source of tension as evaluative and developmental priorities appear to clash. S
ome management experts have argued that appraisal cannot serve the needs of eval
uation and development at the same time.
Performance Appraisal and Total Quality Management (TQM)
With the advent of TQM (Total Quality Management) and the extensive use of teams
, traditional performance appraisal systems have come under some criticism. For
example, rather than motivating employees, conflict may be created when appraisa
ls are tied to merit pay and when that merit pay is based on a forced ranking.
However, there is no doubt that, without safeguards such as appropriate design,
adequate administrative support, comprehensive job analysis / description and t
raining for appraisers, conventional performance appraisal processes risk becomi
ng just another of the many bureaucratic rituals supervisors and subordinates mu
st endure.
The Employee Performance Appraisal Process

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 contrib
ution to the organizational goals and objectives. The standards set should be cl
ear, easily understandable and in measurable terms. In case the performance of t
he employee cannot be measured,
COMMUNICATING AND EXPECTATIONS THE STANDARDS
After establishing the standards it is communicated to all the employees of the
organization. The employees should be informed and the standards should be clear
ly explained to them. 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 mod
ified at this stage itself according to the relevant feedback from the employees
or the evaluators.
MEASURING THE ACTUAL PERFORMANCE
This is the most difficult part of the Performance appraisal process in this ste
p the actual performance of the employees is measured during the specified perio
d of time. It is a continuous process which involves monitoring the performance
throughout the year. This stage requires the careful selection of the appropriat
e techniques of measurement, taking care that personal bias does not affect the
outcome of the process and providing assistance rather than interfering in an em
ployees.
COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE
In this step the actual performance is compared with the desired or the standard
performance. The comparison tells the deviations in the performance of the empl
oyees from the standards set. The result can show the actual performance being m
ore than the desired performance or, the actual performance being less than the
desired performance depicting a negative deviation in the organizational perform
ance. It includes recalling, evaluating and analysis of data related to the empl
oyees’ performance.
DISCUSSING RESULTS
The result of the appraisal is communicated and discussed with the employees on
one-to-one basis. The focus of this discussion is on communication and listening
. The results, the problems and the possible solutions are discussed with the ai
m 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.
DECISION MAKING
This is the last step of performance appraisal process in this step the decision
is taken either to improve the performance of the employees, take the required
corrective actions, or the related HR decisions like rewards, promotions, demoti
ons, transfers etc.
The employee performance appraisal enables you to identify, evaluate and develop
an individual s performance. It is a tool to encourage strong performers to mai
ntain their high level of performance and to motivate poor performers to do bett
er.
METHODS OF PERFORMANCE APPRAISAL
Modern Methods Of Performance Appraisal
ASSESSMENT CENTRES
An assessment centre typically involves the use of methods like social/informal
events, tests and exercises, assignments being given to a group of employees to
assess their competencies to take higher responsibilities in the future. General
ly, employees are given an assignment similar to the job they would be expected
to perform if promoted. The trained evaluators observe and evaluate employees as
they perform the assigned jobs and are evaluated on job related characteristics
.
The major competencies that are judged in assessment centers are interpersonal s
kills, intellectual capability, planning and organizing capabilities, motivation
, career orientation etc. assessment centers are also an effective way to determ
ine the training and development needs of the targeted employees.
BEHAVIORALLY ANCHORED RATING SCALES
Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which c
ombines the graphic rating scale and critical incidents method. It consists of p
redetermined critical areas of job performance or sets of behavioral statements
describing important job performance qualities as good or bad (for eg. the quali
ties like inter-personal relationships, adaptability and reliability, job knowle
dge etc). These statements are developed from critical incidents.
In this method, an employee’s actual job behavior is judged against the desired be
havior by recording and comparing the behavior with BARS. Developing and practic
ing BARS requires expert knowledge.
Performance Factor Rating Scale

Performance Appraisal Percentage

Rating % of Rating Increase
1 Excellent ( Rating = 4) 80% - 100% 20%
2 Good ( Rating = 3) 60% - 80% 15%
3 Average ( Rating = 2) 40% - 60% 10%
4 Below Average ( Rating = 1) 20% - 40% 5%
5 Unacceptable ( Rating = 0) 0% - 20% 0%
HUMAN RESOURCE ACCOUNTING METHOD
Human resources are valuable assets for every organization. Human resource accou
nting method tries to find the relative worth of these assets in the terms of mo
ney. In this method the Performance appraisal of the employees is judged in term
s of cost and contribution of the employees.
The cost of employees include all the expenses incurred on them like their compe
nsation, recruitment and selection costs, induction and training costs etc where
as their contribution includes the total value added (in monetary terms). The di
fference between the cost and the contribution will be the performance of the em
ployees. Ideally, the contribution of the employees should be greater than the c
ost incurred on them.
360-DEGREE-PERFORMANCE-APPRAISAL METHOD
Performance appraisal is the process of obtaining, analyzing and recording infor
mation about the relative worth of an employee. The focus of the performance app
raisal is measuring and improving the actual performance of the employee and als
o the future potential of the employee. Its aim is to measure what an employee d
oes.
According to Flippo, a prominent personality in the field of Human resources, “per
formance appraisal is the systematic, periodic and an impartial rating of an emp
loyee’s excellence in the matters pertaining to his present job and his potential
for a better job."
Performance appraisal is a systematic way of reviewing and assessing the perfor
mance of an employee during a given period of time and planning for his future.
It is a powerful tool to calibrate, refine and reward the performance of the emp
loyee.
It helps to analyze his achievements and evaluate his contribution towards the a
chievements of the overall organizational goals. By focusing the attention on pe
rformance, performance appraisal goes to the heart of personnel management and r
eflects the management’s interest in the progress of the employees.

MANAGEMENT BY OBJECTIVES
The 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 com
e together to identify common goals, the employees set their goals to be achieve
d, the standards to be taken as the criteria for measurement of their performanc
e andcontribution 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 compar
ison of the employee’s actual performance with the standards set. Ideally, when em
ployees 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.
Traditional methods Of Performance Appraisal
ESSAY APPRAISAL
In its simplest form, this technique asks the rater to write a paragraph or more
covering an individual s strengths, weaknesses, potential, and so on. In most s
election situations, particularly those involving professional, sales, or manage
rial positions, essay appraisals from former employers, teachers, or associates
carry significant weight. The assumption seems to be that an honest and informed
statement -either by word of mouth or in writing- from someone who knows a man
well, is fully as valid as more formal and more complicated methods.
The biggest drawback to essay appraisals is their variability in length and cont
ent. Moreover, since different essays touch on different aspects of a man s perf
ormance or personal qualifications, essay ratings are difficult to combine or co
mpare. For comparability, some type of more formal method, like the graphic rati
ng scale, is desirable.
FORCED-CHOICE RATING
Like the field review, this technique was developed to reduce bias and establish
objective standards of comparison between individuals, but it does not involve
the intervention of a third party. Although there are many variations of this me
thod, the most common one asks raters to choose from among groups of statements
those which best fit the individual being rated and those which least fit him.
The statements are then weighted or scored, very much the way a psychological te
st is scored. People with high scores are, by definition, the better employees;
those with low scores are the poorer ones. Since the rater does not know what th
e scoring weights for each statement are, in theory at least, he cannot play fav
orites. He simply describes his people, and someone in the personnel department
applies the scoring weights to determine who gets the best rating.
The rationale behind this technique is difficult to fault. It is the same ration
ale used in developing selection test batteries. In practice, however, the force
d-choice method tends to irritate raters, who feel they are not being trusted. T
hey want to say openly how they rate someone and not be second-guessed or tricke
d into making "honest" appraisals.
CRITICAL INCIDENT APPRAISAL
The discussion of ratings with employees has, in many companies, proved to be a
traumatic experience for supervisors. Some have learned from bitter experience w
hat General Electric later documented; people who receive honest but negative fe
edback are typically not motivated to do better - and often do worse - after the
 appraisal interview. Consequently, supervisors tend to avoid such interviews, o
r if forced to hold them, avoid giving negative ratings when the ratings have to
be shown to the employee.
WORK-STANDARDS APPROACH
Instead of asking employees to set their own performance goals, many organizatio
ns set measured daily work standards. In short, the work standards technique est
ablishes work and staffing targets aimed at improving productivity. When realist
ically used, it can make possible an objective and accurate appraisal of the wor
k of employees and supervisors.
To be effective, the standards must be visible and fair. Hence a good deal of ti
me is spent observing employees on the job, simplifying and improving the job wh
ere possible, and attempting to arrive at realistic output standards.
It is not clear, in every case, that work standards have been integrated with an
organization s performance appraisal program. However, since the work-standards
program provides each employee with a more or less complete set of his job duti
es, it would seem only natural that supervisors will eventually relate performan
ce appraisal and interview comments to these duties. I would expect this to happ
en increasingly where work standards exist. The use of work standards should mak
e performance interviews less threatening than the use of personal, more subject
ive standards alone.
RANKING METHODS
For comparative purposes, particularly when it is necessary to compare people wh
o work for different supervisors, individual statements, ratings, or appraisal f
orms are not particularly useful. Instead, it is necessary to recognize that com
parisons involve an overall subjective judgment to which a host of additional fa
cts and impressions must somehow be added. There is no single form or way to do
this.
Comparing people in different units for the purpose of, say, choosing a service
supervisor or determining the relative size of salary increases for different su
pervisors, requires subjective judgment, not statistics. The best approach appea
rs to be a ranking technique involving pooled judgment. The two most effective m
ethods are alternation ranking and paired comparison ranking.
Alternation ranking:
In this method, the names of employees are listed on the left-hand side of a she
et of paper - preferably in random order. If the rankings are for salary purpose
s, a supervisor is asked to choose the "most valuable" employee on the list, cro
ss his name off, and put it at the top of the column on the right-hand side of t
he sheet. Next, he selects the "least valuable" employee on the list, crosses hi
s name off, and puts it at the bottom of the right-hand column. The ranker then
selects the "most valuable" person from the remaining list, crosses his name off
and enters it below the top name on the right-hand list, and so on.
Paired-comparison ranking:
This technique is probably just as accurate as alternation ranking and might be
more so. But with large numbers of employees it becomes extremely time consuming
and cumbersome.
To illustrate the method, let us say we have five employees: Mr. Abbott, Mr. Bar
nes, Mr. Cox, Mr. Drew, and Mr. Eliot. We list their names on the left-hand side
of the sheet. We compare Abbott with Barnes on whatever criterion we have chose
n, say, present value to the organization.
Ten Tips for Creating a Employee Appraisal System
Face the facts: Creating a new employee performance appraisal system is a diffic
ult undertaking. It’s even more difficult if the organization doesn’t have a logical
, well-tested, step-by-step process to follow in developing their new procedure.
• One
Get top management actively involved. Without top management’s commitment and visi
ble support, no program can succeed. Top management must establish strategic pla
ns, identify values and core competencies, appoint an appropriate Implementation
Team, demonstrate the importance of performance management by being active part
icipants in the process, and use appraisal results in management decisions.
.
• Two
Establish the criteria for an ideal system. Consider the needs of the four stake
holder groups of any appraisal system: Appraisers who must evaluate performance;
Appraisees whose performance is being assessed; Human Resources professionals w
ho must administer the system; and the Senior Management group that must lead th
e organization into the future. Identifying their expectations at the start help
s assure their support once the system is finally designed. Ask each group: "Wha
t will it take for you to consider this system a smashing success?" Don’t settle f
or less.
• Three
Appoint an Implementation Team. This task force should be a diagonal slice of b
oth appraisers and appraises from different levels and functions in the organiza
tion. The implementation team is responsible for accomplishing the two major req
uirements for a successful system. First, developing appropriate appraisal forms
, policies and procedures. Second (and the task too often overlooked) assuring a
successful deployment.
• Four
Design the form first. The appraisal form is a lightning rod that will attract e
veryone’s attention. Design the form early and get lots of feedback on it. Don’t bel
ieve anybody who tells you that the form isn’t important. They’re wrong. If you’re des
igning a new form internally, make sure it assesses both behaviors and results.
• Five
Build your mission, vision, values, and core competencies into the form. Perform
ance appraisal is a means, not an end. The real objective of any performance man
agement system is to make sure that the company’s strategic plan and vision and va
lues are communicated and achieved. Core competencies expected of all organizati
on members should be included, described and assessed. If your mission statement
isn’t clearly visible in the performance appraisal system, cynicism will likely r
esult. Values become real only when people are held accountable for living up to
them.
• Six
Assure on-going communication. Circulate drafts and invite users to make recomme
ndations. Keep the development process visible through announcements and regular
updates. Use surveys, float trial balloons, request suggestions and remember th
e cardinal principle — "People support what they help create."
• Seven
Train all appraisers. Performance appraisal requires a multitude of skills — behav
ioral observation and discrimination, goal-setting, developing people, confronti
ng unacceptable performance, persuading, problem-solving, planning, etc. Unless
appraiser training is universal and comprehensive, the program won’t produce much.
And don’t ignore the most important requirement of all: the need for courage.
• Eight
Orient all appraisees. The program’s purposes and procedures must be explained in
advance — and explained enthusiastically — to everyone who will be affected by it. S
pecific skills training should be provided if the new performance management pro
cedure requires self-appraisal, multi-rater feed-back, upward appraisal, or indi
vidual development planning.

• Nine
Use the results. If the results of the performance appraisal are not visibly use
d in making promotion, salary, development, transfer, training and termination d
ecisions, people will realize that it’s merely an exercise.
• Ten
Monitor and revise the program. Audit the quality of appraisals, the extent to w
hich the system is being used, and the extent to which the original objectives h
ave been met. (One of the great advantages of an online performance appraisal sy
stem is that all of these data are available instantaneously.)
Provide feedback to management, appraisers and appraisees. Train new appraisers
as they are appointed to supervisory positions. Actively seek and incorporate su
ggestions for improvement.
A company’s performance appraisal process is critically important. It answers the
two questions that every member of an organization wants to know: 1) What do you
expect of me? and 2) How am I doing at meeting your expectations? Using these t
en tips will help you develop or select a system to will give accurate and compl
ete answers to everyone.
Performance Appraisal for Employees at Different Levels
Performance appraisal is important for employees at all levels throughout the or
ganization. The parameters, the characteristics and the standards for evaluation
may be different, but the fundamentals of performance appraisal are the same. B
ut as the level of the employees’ increases, performance appraisal is more effecti
vely used as the tools of managing performance.

PERFORMANCE APPRAISAL OF MANAGERS:

Appraising the performance of managers is very important, but at the same time,
it is one of the most difficult tasks in the organization. It is difficult becau
se most of the managerial work cannot be quantified i.e. it is qualitative in na
ture like leading his/her team, guiding, motivating, planning etc.
Therefore, the two things to be noted and evaluated for the purpose of appraisal
s are:
• Performance in accomplishing goals, and
• Performance as managers
PERFORMANCE IN ACCOMPLISHING GOALS
Managers are responsible for the performance of their teams as a whole. Performa
nce in accomplishing goals would mean to look at the completion or achievement o
f the goals set for a team of employees which is being assigned to or working un
der a particular manager. The best measuring criteria for a manager are hi goals
, his plans of course of action to achieve them and the extent of achievement of
the goals.

PERFORMANCE AS MANAGERS
The responsibilities of managers include a series of activities which are concer
ned with planning, organizing, directing, leading, motivating and controlling. M
anagers can be rated on the above parameters or characteristics
Criteria for measuring performance at different levels:
The criteria for measuring performance changes as the levels of the employees an
d their roles and responsibilities change.
A few examples for each level are described below:
For top level management
• Degree of organizational growth and expansion
• Extent of achievement of organizational goals
• Contribution towards the society
• Profitability and return on capital employed
For middle level managers
• Performance of the departments or teams
• Co-ordination with other departments
• Optimal use of resources
• Costs Vs. revenues for a given period of time
• The communication with superiors and subordinates
For front line supervisors
• Quantity of actual output against the targets
• Quality of output against the targets
• Number of accidents in a given period
• Rate of employee absenteeism
Current Global trends in Performance Appraisal Program
The performance appraisal process has become the heart of the human resource man
agement system in the organizations. Performance appraisal defines and measures
the performance of the employees and the organization as a whole. It is a tool f
or accessing the performance of the organization. The important issues and point
s concerning performance appraisal in the present world are:
The focus of the performance appraisals is turning towards career development re
lying on the dialogues and discussions with the superiors.
Performance measuring, rating and review systems have become more detailed, stru
ctured and person specific than before.
Performance related pay is being incorporated in the strategies used by the orga
nizations.
Trend towards a 360-degree feedback system
The problems in the implementation of the performance appraisal processes are be
ing anticipated and efforts are being made to overcome them.
In India, the performance appraisal processes are faced with a lot of obstacles,
the most prominent being the lack of quantifiable indicators of the performance
.
Global trends
The emergence of following concepts and the following trends related to Performa
nce appraisal can be seen in the global scenario:
360 DEGREE APPRAISAL
360 degree feedback, also known as multi-rater feedback , is the most comprehen
sive appraisal where the feedback about the employees’ performance comes from all
the sources that come in contact with the employee on his job. Organizations are
increasingly using feedback from various sources such as peer input, customer f
eedback, and input from superiors. Different forms with different formats are be
ing used to obtain the information regarding the employee performance.
TEAM PERFORMANCE APPRAISAL
According to a wall street journal headline, “Teams have become commonplace in U.S
. Companies”. Most of the performance appraisal techniques are formulated with ind
ividuals in mind i.e. to measure and rate the performance of the individual empl
oyee. Therefore, with the number of teams increasing in the organizations, it be
comes difficult to measure and appraise the performance of the team. The questio
n is how to separate the performance of the team from the performance of the emp
loyees. A solution to this problem that is being adopted by the companies is to
measure both the individual and the team performance. Sometimes, team based obje
ctives are also included in the individual performance plans.
RANK AND YANK STRATEGY
Also known as the “Up or out policy”, the rank and yank strategy refers to the perfo
rmance appraisal model in which best-to-worst ranking methods are used to identi
fy and separate the poor performers from the good performers. Then the action pl
ans and the improvement opportunities of the poor performers are discussed and t
hey are given to improve their performance in a given time period, after which t
he appropriate HR decisions are taken. Some of the organizations following this
strategy are Ford, Microsoft and Sun Microsystems.
Why Do We Need Performance Appraisals?
Performance Appraisal is an objective system to judge the ability of an individu
al employee to perform his tasks. A good performance appraisal system should foc
us on the individual and his development, besides helping him to achieve the des
ired performance. This means that while the results are important the organizati
on should also examine and prepare its human capital to achieve this result. Thi
s holds true even for new inductees.
RESEARCH METHODOLOGY

Aim of the Research

To ascertain the effectiveness of Performance Appraisal methodology used by the
Organization.
Objectives of the study
The following are the objectives of the study –
To develop my understanding of the subject
Performance Appraisal System implemented in various Organizations varies accordi
ng to the need and suitability. Through my research, I have tried to study the k
ind of Appraisal used in the Organization and the various pros and cons of this
type of system.
To conduct a study on social behavior
Social behavior is a very unpredictable aspect of human life but social research
is an attempt to acquire knowledge and to use the same for social development.
To enhance the welfare of employees
The Appraisal system is conceived by the Management but mostly does not take int
o consideration the opinion of the employees. This can lead to adverse problems
in the Organization. Therefore by this study I have attempted to put forth the o
pinion of the employee with respect to the acceptability of the Performance Appr
aisal System.
To exercise social control and predict changes in behavior
The ultimate object of my research is to make it possible to predict the behavio
r of individuals by studying the factors that govern and guide them.
Research Design
A research design is a type of blueprint prepared on various types of blueprints
available or the collection, measurement and analysis of data. A research desig
n calls for developing the most efficient plan of gathering the needed informati
on. The design of a research study is based on the purpose of the study.
A research design is the specification of methods and procedures for acquiring t
he information needed. It is the overall pattern or framework of the project tha
t stipulates what information is to be collected from which source and by what p
rocedures.
Sampling
An integral component of a research design is the sampling plan. Specifically, i
t addresses three questions:
• Whom to survey (The Sample Unit)
• How many to Survey (The Sample Size) &
• How to select them (The Sampling Procedure)
Making a census study of the whole universe will be impossible on the account of
limitations of time. Hence sampling becomes inevitable. A sample is only a port
ion of the total employee strength. According to Yule, a famous statistician, th
e object of sampling is to get maximum information about the parent population w
ith minimum effort.
Methods of Sampling
Probability Sampling is also known as random sampling or chance sampling. Under
this sampling design every individual in the organization has an equal chance, o
r probability, of being chosen as a sample. This implies that the section of sam
ple items is independent of he persons making the study that is; the sampling op
eration is controlled objectively so that the items will be chosen strictly at r
andom.
Non Probability Sampling is also known as deliberate sampling, purposeful and ju
dgmental sampling. Non-Probability Sampling is that which does not provide every
individual in the Organization with a known chance of being included in the sam
ple.
Data collection method
Collection of data is the first step in statistics. The data collection process
follows the formulation for research design including the sample plan. The data
can be secondary or primary.
Collection of Primary Data during the course of the study or research can be thr
ough observations or through direct communication with respondents on one form o
r another or through personal interviews. I have collected primary data by the m
eans of a Questionnaire. The Questionnaire was formulated keeping in mind the ob
jectives of the research study.
Secondary data means data that is already available i.e., they refer to data, wh
ich has already been collected and analyzed by someone else. When a secondary da
ta is used, the researcher has to look into various sources from where he can ob
tain data. This includes information from various books, periodicals, magazines
etc.

Research Methodology Adopted

The data source: Primary as well as Secondary.
The research approach: Survey Method.
The research instrument: Questionnaire.
The respondents: The Managers & Employees of various CHOKHI DHANI.
The primary data was collected with the help of survey information. A concise qu
estionnaire was prepared keeping in mind the information specifications.
Sample Size: 50
Sample Unit: Employees who do not hold a supervisory position.
Source of Data
a) Primary Data: Structured Questionnaire
b) Secondary Data: Journals, Booklets, Company Data, etc.
Review of literature
• Fletcher C, Performance appraisal and management, November 4, 2001: Performance
appraisal has widened as a concept and as a set of practices and in the form of
performance management has become part of a more strategic approach to integrati
ng HR activities and business policies. As a result of this, the research on the
subject has moved beyond the limited confines of measurement issues and accurac
y of performance ratings and has begun to focus more of social and motivational
aspects of appraisal. This article identifies and discusses a number of themes a
nd trends that together make up the developing research agenda for this field. I
t breaks these down in terms of the nature of appraisal and the context in which
 it operates. The former is considered in terms of contemporary thinking on the
content of appraisal (contextual performance, goal orientation and self awarenes
s) and the process of appraisal (appraiser–appraisee interaction, and multi-source
feedback). The discussion of the context of appraisal concentrates on cultural
differences and the impact of new technology.
• Gregory H. Dobbins, Performance Appraisal as Effective Management or Deadly Mana
gement Disease, 1990: Understanding person and system sources of work variation
is fundamental to performance appraisal. Two divergent perspectives on this issu
e, the traditional human resource management view and the statistical process co
ntrol view (Deming, 1986), are contrasted. Two studies are reported that investi
gate two specific questions that arise from a broader view of the appraisal proc
ess. Results indicate that managers and subordinates believe that typical poor p
erformance has different causes and that actual productivity levels far outweigh
person or system sources of performance variance in appraisal judgments.
• Gregory H. Dobbins, A Contingency Approach to Appraisal Satisfaction, 1990: The
present study explored the moderating effects of organizational variables on the
appraisal characteristic- appraisal satisfaction relationship. Analyses indicat
ed that the appraisal characteristics of action plans, frequency, and rater trai
ning were more positively related to appraisal satisfaction when subordinates ex
perienced role conflict, were not closely monitored, and supervisors had a large
span of control. The results provide substantial support for conceptualizing ap
praisal satisfaction as a contingent function of both appraisal characteristics
and organizational variables. Implications of the findings for the design of app
raisal systems, appraisal effectiveness, and future research are discussed. pref
erences, especially those pertaining to group-level PM. Practical implications a
re suggested with regard to collecting and using user preferences. In addition,
suggestions for future research are offered concerning the need to examine a bro
ad range of users in different organizational settings and to measure actual sys
tem design features and their effectiveness.
• Dennis W. Organ, A Restatement of the Satisfaction- Performance Hypothesis, 1988
: This article reviews recent evidence in support of Organ’s (1977) argument that
satisfaction more generally correlates with organizational prosocial or citizens
hip-type behaviors than with traditional productivity or in- role performance. A
n attempt is then made to interpret just what it is in satisfaction measures tha
t provide this correlation, leading to the suggestion that fairness cognitions c
omprise the major factor. Implications of this interpretation for theory, resear
ch, and management practice are offered.

Chokhi Dhani - The Ethnic Village Resort

Introduction:
The ethnic village resort of Chokhi Dhani is India s first 5 star ethnic resort.
The resort showcases the grandeur of Rajasthan art and culture with its intrigu
ing mud and thatch huts, which have every conceivable luxury that a guest might
crave for.
Chokhi Dhani is a beautifully recreated traditional village, complete with shops
, puppeteers, and other local specialties. Initially developed as a theme restau
rant, the Village has grown to become an attraction it self. Its mud huts, camel
rides, traditional barbers, fair games, and food stalls are reminiscent of an o
lder and simpler Rajasthan. A family adventure, Chokhi Dhani is still most popul
ar for its multi course, sit down, traditional Rajasthani meal.
Spread across 10 acres, Chokhi Dhani features many mud huts that serve as shops
and little theaters for puppeteers and dances as well as larger concrete structu
res that usually house restaurants.
The Village offers a glimpse into almost every aspect of traditional Rajasthani
life, such as the festivities of a village fair. The décor and ambiance reflect th
e simple beauty of a prosperous village. Machaans and platforms dot the area, ch
arpais or rustic cots are laid out, and walls of the mud houses are decorated wi
th colorful paintings.
The entertainment at the village includes magic and puppet shows, acrobatics, an
d many Rajasthani folk dances. Other attractions include a giant board to play s
nakes-and-ladders, maze, and an artificial forest which includes the local preda
tors.
The highlight of the village is the restaurant. It offers an unmatched selection
of the best Rajasthani cuisine. You can opt for the more traditional sit down d
inner, where turbaned waiters joyfully overfill your plate, or the more staid bu
ffet where you can may be control how much to eat.
Special Attributes
A well re-created version of the traditional Rajasthani village.
Exposure
If we visit during the day, exposure to the sun will be high. That said, Chokhi
Dhani is best enjoyed in.
Facilities
Restaurants, shops, as well as restrooms.
Number of Rooms: 65 cottages
Hotel Amenities: Access to the Tapri, which is a bambooed hall, housing indoor g
ames and a multi cuisine restaurant called as Bindola serving a vast array of In
dian, Continental and Chinese cuisine
Luxury Rajasthan Vacations, offers on line reservations to Chokhi Dhani, a resor
t located in Jaipur, Rajasthan, North India, and so does a travel tour to Rajast
han, North India.
Accommodation:
The resort has 65 cottages and 8 Haveli suites. Each of the cottages are equippe
d with all kinds of modern comfort and amenities.
Dining:
The marvelous Bindola restaurant is a much sought after multi cuisine restauran
t. It offers delectable array of noveau international cuisines along with orient
al and the very best of Indian cuisines which includes Tandoori, Mughlai and of
course the lip smacking Rajasthani culinary delights. The ambience of Bindola re
staurant is conspicuous for its delightful live Ghazal band that plays sentiment
al numbers to the sheer delight of the crowds.
There is also the stunning Chandni Mahal Bar, which is more renowned for its int
erior décor than its assortment of drinks. What is amazing about Chandni Mahal Bar
is its 1000,000 mirrors on the ceilings that reflect a million rays. The silver
work and gilt furniture looks very elegant. The bar is a living testimony of th
e artistic excellence of the Udaipur region of Rajasthan.

Meetings & Conferences:

Not only is Chokhi Dhani popular for holidays but it s conference and banquetin
g facilities are top rate too. There is Mandani which is a stylish conference ha
ll which can accommodate 125 persons at a time and is well equipped with the lat
est audio-visual gadgets that guarantees a sophisticated conference ambience so
vital for the success of any conference. There is also the Sajan Goth which is m
uch smaller in size in comparison to Mandani and is much preferred for intimate
get-togethers and meetings.
Recreation:
The Tapri recreational room has provisions for billiards, table tennis, carom a
nd chess. It is very popular because of its sheer ethnicity as it is made of bam
boo and the ambience inside is very soothing, ideal for indoor games. For the hi
gh energy types, there is the marvelous sunken turquoise blue swimming pool and
is modeled in the traditional royal pools of yesteryears.
India Rajasthan Tours offer online booking and reservation of Chokhi Dhani - The
Ethnic Village Resort, Jaipur. For booking and other information, please fill i
n the form below.
Business:
The Mandani is the conference hall in Resort Chokhi Dhani that has a capacity to
arrange meetings for as many as 125 heads. For smaller gatherings of about 35 p
eople, the Sajan Goth is a nice place to book. These halls facilitate business a
ctivities by providing the following equipments:
• Secretarial Services
• Audio-Visual Aids
• LCD Projectors
• White Boards
Moreover, Chokhi Dhani Resort in Jaipur also arranges for banquets and cocktail
parties for as many as 400 heads in the lawns surrounding the poolside.
Other Facilities :
Chokhi Dhani Resort in Jaipur provides the following indispensable services to i
ts visitors:
• Round the Clock Room Service
• Travel Assistance
• Currency Exchange
Locations:
Located on the suburbs of Jaipur, The Pink City of India, is Chokhi Dhani, repli
cation of ethnic Rajasthani Village. Spread on more than 18 acres of land, Chokh
i Dhani is synonymous with Rajasthani Culture since 1989. In 1989 with Chokhi Dh
ani Village, as a part of ambiance for a restaurant, over the years it has evolv
ed as a tasteful and authentic symbol of ethnic village life of this most colorf
ul state in the country. Built on typical Rajasthani theme, embedded with its ri
ch heritage and lifestyle, it is a place where festivity never ends. Tradition i
nfused with illustrious Rajasthani Hospitality makes Chokhi Dhani an unavoidable
choice. Every day thousands of Inbound and Domestic Tourists and corporate clie
nts congregate for a memorable experience.
CHOKHI DHANI IS DIVIDED INTO 2 PARTS:
1. THE VILLAGE
2. THE RESORT
In Chokhi Dhani Village you will find a different theme for each day, a festive
celebration every time in a different manner with a purview of real rajasthani v
illage culture in fun, entertainment, games, thrill, shopping, rajasthani diet,
Rajasthani Kalbeliya Dance or Ghoomer or other folk dance , music and much more
to look... to feel... to breathe... to taste... to experience.... whereas Chokhi
Dhani Resort is not merely a modern resort with many facilities, but an experie
nce to the Royal culture of Indian history. It provide all facilities and servic
es of any modern resort like Business meeting hall, Banquet Hall, Recreational f
acilities, Health Club, Swimming Pool, Spa, Steam and Sauna baths, Jacuzzi, a Gy
m and Massage facility, Beauty Parlor, Discotheque, Bar, Multicuisine Restaurant
and more and some special facilities which you will find nowhere like Rajasthan
i special thali (Rajasthani Diet) in pure Ghee, Indian Hukkha, Traditional welco
me with Tikka and Arti, Folk music which makes your feet dance, Ethnic decoratio
n all around and in all cottages and Haveli Suites and moreover the respect, lov
e and care which an Indian gives to his guest...treated as God.

Chokhi Dhani Resort Chokhi Dhani Village

Now, when The Chokhi Dhani become a strong International Brand, we are replicati
ng this goodwill in many other locations in India So that, you. Anyone who has v
isited Chokhi Dhani knows what we are, those who haven t..., have heard about us
. Chokhi Dhani Pune, Indore and Mumbai are already working and Chokhi Dhani is r
eady to come in Panchkula, Surat, Goa, Kolkata and many other locations.
ACHIEVEMENT
As you enter the vast property, “Ram Ram sa…” “Padharo Sa...” ring out as greetings. You a
re welcomed with drums, tilak and Kutchi Ghodi. Camel ride, head massage, giant
wheel and numerous other fun and games have won the vice president’s award for thi
s unique project Chokhi Dhani — an attempt towards reviving authentic Rajasthani v
illage — of Kalyan has got recently the national award – As you enter the vast prope
rty, “Ram Ram sa…” “Padharo Sa...” ring out as greetings. You are welcomed with drums, til
ak and Kutchi Ghodi. Camel ride, head massage, giant wheel and numerous other fu
n and games have won the vice president’s award for this unique project Chokhi Dha
ni — an attempt towards reviving authentic Rajasthani village — of Kalyan has got re
cently the national award – As you enter the vast property, “Ram Ram sa…” “Padharo Sa...” r
ng out as greetings. You are welcomed with drums, tilak and Kutchi Ghodi. Camel
ride, head massage, giant wheel and numerous other fun and games have won the vi
ce president’s award for this unique project Chokhi Dhani — an attempt towards reviv
ing authentic Rajasthani village — of Kalyan has got recently the national award –

The award was given by ministry of tourism,government of India recognition to th

e unending endeavor to recreate the innovation of art and culture in the hospita
lity ventures of Chokhi Dhani Group.
FOUNDERS & PROMOTERS
Mr. Gul Vaswani, Chairman
An NRI based in Dubai, whose iconic vision of recreating the culture of Rajastha
n based on his belief of making it big, a grassroot concept from his own roots.
Mr. Subhash Vaswani, M.D.
Shaping the vision, and encapsulating with the rural and rustic resources, he ha
s been the instrument behind giving the group a tangible entity.

Chokhi Dhani Group is a Private Sector Company that offers services in Hotels /
Resorts with Annual Total Turnover of 10-100 Crs and with Employee Strength of 2
51-500.

Hotels & Resorts

 Jaipur
Indore

Ethnic Village Fair & Restaurant

Jaipur
Indore

Pune
Mumbai

Surat
Ahmedabad

Desert Camp & Village Fair

Jaisalmer

Water & Amusement Park

Water & Amusement Park

Panchkula
Ludhiana
Sonepat
Chennai
Raipur

DATA ANALYSIS AND INTEERPRETATION

1. What is the level of motivation of your personnel?
RESPONCES NO OF RESPONDENTS %
VERY HIGH 5 10
HIGH 24 48
MODERATE 10 20
LOW 5 10
VERY LOW 6 12
TOTAL 50 100

2.
INTERPRETATION:
The graph shows that the level of motivation is 10% very high, 48% is high, 20%
is moderate, 10% low and 12% is very low.

2. Does the credibility of Appraiser affect the Performance Appraisal System?

RESPONCES NO. OF RESPONDENTS %
YES 28 56
NO 22 54
TOTAL 50 100

INTERPRETATION:
The above table shows that 56% respondents say ‘yes’ the employees are credible of a
ppraiser and 44% respondents say ‘no’ about it.

3. Are u satisfied with the performance appraisal system?

RESPONCES NO. OF RESPONDENTS %
FULLY DISSATISFIED 10 20
PARTIALLY DISSATISFIED 6 12
SATISFIED 14 28
PARTIALLY SATISFIED 7 14
FULLY SATISFIED 13 26
TOTAL 50 100

INTERPRETATION:
The analysis shows that the satisfaction level of chokhi dhani is average. 28% r
espondents are satisfied with the performance appraisal system which is accepted
by most of the employees.

4. Is there a complaint channel for the employees who are dissatisfied with the
performance appraisal system?
RESPONCES NO. OF RESPONDENTS %
YES 15 30
NO 35 70
TOTAL 50 100
INTERPRETATION:
The analysis shows that 70% respondents accept that they are provided good commu
nication channel for employees and 30% say no about it.

5. Awareness about performance appraisal system

RESPONCES NO. OF RESPONDENTS %
YES 11 22
NO 39 78
TOTAL 50 100

INTERPRETATION:
This shows that most of the respondents are unaware about responsibilities.

5. Are you given a chance to rate your own performance?

RESPONCES NO. OF RESPONDENTS %

YES 8 16
NO 42 84
TOTAL 50 100

INTERPRETATION:
From the graph we can see that majority of the employees are not given a chance
to rate their own performance in the CHOKHI DHANI.

6. Effect of poor Appraisal System

RESPONCES NO. OF RESPONDENTS %
DE-MOTIVATION 33 66
RETENTION O O
INEFFECTIVE TEAMWORK 17 34
TOTAL 50 100

INTERPRETATION:
It can be seen from results that most of the employees get De-motivated because
of a poorly conducted appraisal. To some extent employees dont coordinate with t
heir team members. Thus resulting in reduction of output.

8. What is the level of corruption in the department?

RESPONCES NO OF RESPONDENTS %
VERY HIGH 4 8
HIGH 15 30
MODERATE 23 46
LOW 3 6
NOT AT ALL 5 10
TOTAL 50 100

INTERPRETATION:
The analysis shows that level of corruption is moderate in CHOKHI DHANI. And 10%
respondents say that there is no corruption in the DHANI.

9. What are the criteria of your performance evaluation?

RESPONCES NO. OF RESPONDENTS %
PERFORMANCE 26 52
CUSTOMER FOCUS 9 18
ATTENDENCE 5 10
TARGET VS ACHIEVEMENT 10 20
TOTAL 50 100

INTERPRETATION:
The analysis shows that mostly the performance is evaluated on the basis of perf
ormance and attendance matters least.

10. How the performance feedback is communicated to you?

RESPONCES NO OF RESPONDENTS %
WRITTEN 10 20
ORAL 37 74
DETAILED 1 2
SUMMARIZED 2 4
TOTAL 50 100

INTERPRETATION:
The analysis shows that mostly the performance feedback is communicated orally a
nd detailed feedbacck is given in rare cases.
FINDINGS AND RECOMMENDATIONS
The existence of a proper complain channel was also of utmost importance to the
appraisees. They should be given a chance to convey their greviences to the top
management.
 The results also indicate that the there is no communication of top management p
lans and business goal to the appraisee. The appraisers on the other hand feel t
hat the goals and plans have been clearly communicated to the appraisees. Commun
ication is very essential for any system to function efficiently. Therefore the
appraisers should look into this matter and see to it that the goals and plans a
re communicated effectively.
The findings suggest that for success of Appraisal system the credibility of app
raiser is of utmost importance.
Another point to be noticed is that even in the other forms of Performance Appra
isal also the employees expect that they should be given a chance to rate their
own performance. This can allow the employee to analyze ones own performance whi
ch gives new insights on how one is performing and what are the critical points
where he has to put his best and improve upon.
As per the Appraiser, a poorly conducted appraisal system would lead to demotiva
tion and ineffective teamwok which will result in inefficient functioning and lo
w productivity in the organization. Therefore, if at all they feel there is diss
atisfaction among the appraisee’s they should motivate them. Achievement, recognti
on, invelvement, job satisfaction and development can motivate the employees to
a large extent. Along with this satisfactory working conditions and appropraite
awards also play an important role.
Also a majority of employees were satisfied with the current appraisal system al
though they requested for some changes.
Most of the employees were also not clear about the criteria on which ratings we
re given to each employee while conducting the performance appraisal. Instead of
secrecy there should be openess. Because of lack of communication, employees ma
y not know how they are rated. The standards by which employees think they are b
eing judged are sometimes different from those their superiors actually use. Pro
per communication of these ratings can help the employers achieve the level of a
cceptability and commitment which is required from the employ.

CONCLUSION
Performance appraisal is a formal review of employee performance. At a performan
ce appraisal, objectives or targets are agreed between manager and employee. At
each subsequent appraisal, current and past performance is compared and targets
are reviewed. It is a prescribed system with a meeting arranged after a set peri
od to review the targets set by the previous appraisal. This may be six-monthly
or annually, depending on your organization.
Nonetheless, the performance appraisal is not only a means to review performance
standards and specific targets. It is a means to:
1. Identify current job performance levels
2. Identify individual employee strengths and weaknesses
3. Motivate and encourage the individual employee
4. Reward employees for their contribution to organizational objectives
5. Identify training and development needs
6. Identify potential performance standards
7. Plan future development of the individual
8. Discuss salary, promotion and training
The performance appraisal assesses individual employees in terms of their job pe
rformance. Training evaluates individual employees in terms of knowledge, skills
and behaviour, and how they affect overall performance and the achievement of i
ndividual and organizational goals.
A performance appraisal is looking for results, where the role of training is to
direct the process of achieving results. The final stage in the performance app
raisal is the action plan to achieve targets. The appropriate action may require
training to increase knowledge, improve skills or change behaviour.
BIBLIOGRAPHY
WEBBILIOGRAPHY
www.projectparadise.com
www.allprojectreport.com
www.google.com
www.fotolia.com
BOOKS REFFERED
DESSLER, GARY, HUMAN RESUORCE MANAGEMENT, 11TH EDITION, PRENTICE HALL OF INDIA,
2008
ASWATHAPPA, K, HUMAN RESOURCE AND PERSONNEL MANAGEMENT, 4TH EDITION, THE Mc Graw
HILL COMPANIES, 2009
PATNAYAK, BISWAJEET, HUMAN RESOURCE MANAGEMENT, 3RD EDITION, PRENTICE HALL OF IN
DIA, 2007
MAGAZINES
BUSINESS WORLD
BUSINESS TODAY
INDIA TODAY