INTRODUCTION

INTRODUCTION TO THE TOPIC Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee.

"Performance appraisal is the systematic, periodic and an impartial rating of an employees 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 performance 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 employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. Organizational Strategy and Performance Appraisal The performance appraisal system serves many

organizational objectives and goals. Besides encouraging high level of performance, the evaluation system is useful in identifying employees with potential, rewarding

performance equitably and determining employees' needs for development. These are all the activities that should support the organizations strategic orientation. Although these activities are clearly instrumental in achieving corporate plans and long-term growth, typical appraisal systems in most Organizations have been focused on short-term goals. From the strategic management point of view, organizations can be grouped into three categories defenders, prospectors and analyzers. Performance appraisal has definite roles in all the three strategies. Typically, defenders have a narrow and relatively stable product-market domain. Because of this narrow focus, these organizations seldom need to make major adjustments in their technology. They devote primary attention to improving the efficiency of their existing operations. Because of the emphasis building skills within the organization, successful defenders use performance appraisal for identifying training needs. Performance appraisal is usually more behaviour oriented.

OBJECTIVE: This project aims at studying the performance appraisal techniques and its application to enhance motivation at workplace. Performance appraisal is the most significant and indispensable tool for the management as it provide useful info for decision making in area of promotion and compensation reviews. Thus broad objectives of the study include: To know the present system of performance

appraisal.

To know the extent of effectiveness of appraisal

system to enhance motivation at workplace. To identify and know the area for improvement

system.

Research Methodology: The task of data collection begins after a research problem has been defined and research design/plan chalked out. While deciding about the method of data collection to be used for the study, the researcher should keep in mind two types of data viz., primary and secondary. The primary data are those which are collected afresh and for the first time, and thus happen to be original in character. The secondary data, on the other hand, are those which have already been collected by someone else and which have already been passed through the statistical process. This is a desk project so the data collected is a secondary data not primary data.

REVIEW LITERATURE

HISTORY OF PERFORMANCE APPRAISAL The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But it is not very helpful, for the same may be said about almost everything in the field of modern human resources management. As a distinct and formal 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 very well lay claim to being the world's second oldest profession! There is, A basic human tendency to make judgments about 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, including subordinates, naturally, informally and arbitrarily. The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without structured appraisal system, there is little chance of ensuring that the judgments made in the organization will be lawful, fair, defensible, accurate and desirable to others. Performance

appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified. The process was firmly linked to material 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 possibilities of appraisal. It was felt that a cut in pay, or a rise, should provide the only required impetus for an employee to either improve or continue to perform well.

Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed. For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. These observations were confirmed in empirical studies. Pay rates were important, yes; but they were not 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.

As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time.

Definitions and Concepts used APPRAISAL PROCESS Each step in the process is crucial and is arranged logically. The process as shown in Fig. below is somewhat idea1ised. Many organizations make every effort to approximate the ideal process, resulting in firstrate appraisal systems. Unfortunately, many others fail to consider one or more of the steps and, therefore, have less-effective appraisal system.

1. Objectives of Appraisal Objectives of appraisal as stated above include effecting promotions and transfers, assessing training needs, awarding pay increases, and the like. The emphasis in all these is to correct problems. These objectives are appropriate as long as the approach in appraisal is individual. Appraisal in future, would assume systems orientations. In the systems approach, the objectives of appraisal stretch beyond the traditional ones. In the systems approach, appraisal aims at improving the performance, instead of merely assessing it. Towards this end, an appraisal system seeks to evaluate opportunity factors. These opportunity variables are more important than individual abilities in determining work performance. In

the systems approach the emphasis is not on individual assessment and rewards or punishments. But it is on how work the work system affects an individual. In the systems approach the emphasis is not on individual assessment and rewards or punishments. But it is on how the work systems affect an individuals performance. 2. Establish Job Expectations The second step in the appraisal process is to establish job expectations. This includes informing the employee what is expected of him or her on the job. Normally, a discussion is held with his or her superior to review the major duties contained in the job place of formal performance evaluation. 3. Design Appraisal Programme Designing an appraisal Programme poses several questions which we need to answers. They are: 1. Formals versus informal appraisal 2. Whose performance is to be assessed? 3. Who are the raters? 4. What problems are encountered? 5. How to solve the problems? 6. What should be evaluated?

7. When to evaluate? 8. What methods of appraisal are to be used?

The Six Criteria For Assessing Performance 1. Quality: The degree to which the result or process of carrying out an activity approaches perfection in terms of either conforming to some ideal way of performing the activity, or fulfilling the activitys intended purpose.

2. Quantity: The amount produced, expressed in monetary terms, number of units, or number of completed activity cycles. 3. Timeliness: The degree to which an activity is completed or a result produced, at the earliest time desirable from the standpoints of both co-coordinating with the outputs of others and of maximizing the time available for other activities. 4. Cost Effectiveness: The degree to which the use of the organizations resources (e.g. human, monetary, technological and

material) is maximized in the sense of getting the highest gain or reduction in loss from each unit or instance of use of a resource. 5. Need for supervision: The degree to which a job performer can carry out a job function without either having to request supervisory assistance or requiring supervisory

intervention to prevent an adverse outcome. 6. Interpersonal impact: The degree to which as performer promotes feeling of self-esteem, and goodwill. METHODS OF APPRAISAL The last to be addressed in the process of designing an appraisal programme is to determine methods of evaluation. Numerous methods have been devised to measure the quantity and quality of employees job performance. Each of the methods discussed could be effective for some purposes, for some organizations. None should be dismissed or accepted as appropriate except as they relate to the particular needs of the organization or of a particular type of employees. Broadly, all the approaches to appraisal can be identified into

(i) (ii)

past-oriented methods, and Future-oriented methods.

Past-Oriented Methods Rating Scales: This is the simplest and most popular technique for appraising employee performance; the typical rating-scale system consists of several numerical scales, each representing a job-related performance criterion such as dependability, initiative, output, attendance, attitude, co-operation, and the like. Each scale ranges from excellent to poor.The rater checks the appropriate performance level on each criterion, then computes the employees total numerical score. The number of points scored may be linked to salary increases, whereby so many points equal a rise of some percentage

Rating scales offer the advantages of adaptability, relatively easy use and low cost. Nearly every type of job can be evaluated in a short time, and the rater does not need any training to use the scale. The disadvantages of this method are several. The raters biases are likely to influence evaluation, and the biases are particularly pronounced on subjective criteria such as cooperation,

attitude and initiative. Furthermore, numerical scoring gives an illusion of precision that is really unfounded. Checklist: Under this method a checklist of statements on the traits of the employee and his or her job is prepared in 2 columns viz., a Yes column and a No column. All that the rater (immediate superior) should is tick the Yes column if the answer to the statement is positive and in column No if the answer is negative. A typical checklist is given in the table below. After ticking off against each item, the rater forwards the list to the HR department. The HR department assigns certain points to each Yes ticked. Depending upon the number of Yes the total score is arrived at. When points are allotted to the checklist, the technique becomes a weighted checklist. The advantages of as checklist are economy, ease of administration, limited training of rater, and standardization. The disadvantages include susceptibility to raters biases (especially the halo effect), use of personality criteria instead of performance criteria, misinterpretation of checklist items, and the use of improper weights by the HR department.

Forced Choice Method: In this, the rater is given a series of statements about an employee. These

statements are arranged in blocks of 2 or more, and the rater indicates which statement is most or least descriptive of the employee. Typical statements are : 1. Learns fast _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ works hard 2. Work is reliable_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ performance is a good example for

3. Absents often_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ others usually tardy. As in the checklist method, the rater is simply expected to select the statements that describe the rate. Actual assessment is done by the HR Department. This approach is known as the forced choice method because the rater is forced to select statements, which are readymade. The advantage of this method is the absence of personal bias in rating. The disadvantage is that the statements may not be properly framed they may not be precisely descriptive of the ratees traits. Field Review Method This is an appraisal by someone outside the, assessors own department. Usually someone from the corporate office or the HR department. The outsider reviews Employee records and holds interviews with the ratee and his or her superior. This method is primarily used for making promotional decision at the managerial level. Performance Tests and Observations With limited number of jobs, employee assessment may be based upon a test of knowledge or skills. The test may he of the paper-and-pencil variety or an actual demonstration of skills. The test must he reliable and validated to be useful. Even then, performance tests are apt to measure potential more than actual performance. In

order for the test to be job related, observations should he made under circumstances likely to be encountered. Practicality may suffer if costs of test development or administration arc high. Essay Method In the essay method the rater must describe the employee within a number of broad categories such as :(i) The rater's overall impression of the employee's

performance. (ii) (iii) The promo ability of the employee The jobs that the employee is now able or qualified

to perform (iv) and (v) The training and the development assistance The strengths and weaknesses of the employee.

required by the employee. Although this method may be used independently, it is most frequently found in combination with others. It is extremely useful in filing information gaps about the employees that often occur in the better structured checklist method. The strength of the essay method depends on the writing skills and analytical ability of the rater. However many raters do not have good writing skills. They become confused about what to say. How much they should state and the depth of the narrative.

Ranking Method In this, the superior ranks his or her subordinates in the order of their merit, starting from the best to the worst. All that the HR department knows is that A is better than B. The 'how' and 'why' are not questioned, nor answered. No attempt, is made to fractionalizes what is being appraised into component elements. This method is subject to the halo and regency effects, although rankings by two or more raters can be averaged to help reduce biases. Its advantages include ease of administration and explanation. Paired-comparison Method Under this method the appraiser compares each employee with every other employee one at a time. For example there are five employees named A, B. C. D and E. The performance of A is first compared with the performance of B and a decision is made about whose performance is better. Then A is compared with C. D and E in that order. The same procedure is repeated for other employees. The number of comparisons may be calculated with the help of a formula which reads thus: N(N-1)/ 2 where N stands for the number of employees to be compared. Future-oriented Appraisals

Is it not enough if only the past performance is assessed? How an employee can perform in the days to come is equally important. This can be assessed by focusing on employee potential or setting future performance goals. The commonly used future oriented techniques are MBO, psychological appraisals, and assessment centres.

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 first published. The MBO concept, as was conceived by Drucker, reflects a management philosophy which values and utilizes employee contributions. Application of MBO in the field of performance appraisal is a recent thinking. Fits Steps in the MBO Process How MBO works can be described in fits steps: The first step is to establish the goals each subordinate is to attain. In some Organizations, superiors and subordinates work together to establish goals. In others. Superiors establish goals for subordinates. The goals typically refer to the desired outcome to be achieved.

These goals can then be used to evaluate employee performance. The second step involves setting the performance standard for the subordinates in a previously arranged time period. As subordinates perform, they know fairly well what there is to do, what has been done, and what remains to be done. In the third step, the actual level of goal attainment is compared with the goals agreed upon. The evaluator explores reasons for the goals that were not met and for the goals that were exceeded. This step helps determine possible training needs. The final step involves establishing new goals and, possibly new strategies for goals not previously attained. At this point, subordinate and superior involvement in goal setting may change. Subordinates who successfully reach the established goals may be allowed to participate more in the goal setting process the next time. The process is repeated. The MBO process seems to be most useful with managerial personnel 'and employees who have a fairly wide range of flexibility and self-control in their jobs. Besides, when the result of an MBO system are to be used to allocate organizational rewards, employees may be less likely to establish challenging goals they are confident that they can accomplish.

Psychological Appraisals Large organization When employs full-time are industrial used for

psychologists.

psychologists

evaluations. They assess an individuals future potential and past performance.The appraisal normally consists of in-depth interviews, psycho1ogical tests. Discussions with supervisors and a review' of other evaluations . The psychologist then write an evaluation of the employee's intellectual, emotional, motivational and other-related characteristics that suggest individual potential and may predict future performance. The evaluation by the psychologist may be for a specific job opening for which the person is being considered. Or it may be a global assessment of his or her future potential. 360-DEGREE FEEDBACK As stated earlier, where multiple raters are involved in evaluating performance, the technique is called 360 degree appraisal. The 360 degree technique is understood as systematic collection of performance data on an individual or group, derived from a number of stakeholders--the stakeholders being the immediate supervisors. Team members, customers, peers, and self. In fact, anyone who has useful information on how an employee does the job may be one of the appraisers. The 360-degree appraisal provides a broader perspective

about an employee's performance. In addition, the technique facilitates greater self-development of the employees. For one's development, multi-source

feedback is highly useful. It enables an employee to compare his or her perceptions about self with perceptions of others. It is essential that the organization create a non - threatening environment by emphasizing the positive impact of the technique on an employee's performance and development. Some practical motivation techniques that you can use to improve motivation in your workplace 1. Treat Employees as Individuals Do we make assumptions about what motivates your employees? Some are likely to be career focused, but others may see their work as a place to make friends and earn money. Find out what motivates employees outside of work. Some enjoy a challenge such as a sporting activity; others may like to be on committees so they can use their organisational skills. Use their innate talents in the workplace where possible to keep them motivated. Set goals which stretch their abilities. Make goals SMART - specific, measurable, achievable, and relevant and time framed. 2. Treat Employees with Respect

Get to know your employees on a personal level, and offer support when needed, even if it is only to listen to their concerns. Ask your employees for their opinions where possible, for example if you are changing systems or introducing new equipment. Being involved in decision making is one of the best motivation techniques. Catch your employees doing something well and praise them - and if you do this in front of others, it makes the employee feel even better. Giving employees recognition for their efforts will motivate them to repeat the process. 3. Provide Opportunities for Employee Learning and Development Encourage a learning climate, through structured on-thejob training programmes, job transfers, inter-disciplinary projects and support for further education. Aim to have your employees constantly learning new skills and gaining new knowledge. This will reduce the level of stagnation that can easily occur in a business. Promote from within where feasible - and invest the time and support in developing employees so they can take on new opportunities. Some managers worry that by offering a high level of training to employees, they may leave the business for better opportunities elsewhere. Remember this allows other employees to rise up and take their place! Also the word will spread that you are a good

employer - which may encourage a higher calibre of external job applicants. 4. Make the Workplace a Fun Place Having fun is one of the best motivation techniques. And small things can make all the difference. Bringing sweets to team meetings Sharing non-business news through e.g. newsletters Arranging activities such as lunchtime yoga sessions Surprising employees with a birthday cake Asking the employees for their opinion on what would make the workplace a fun place!

Seven Steps to Enhance Employee Performance and Appraisals By Lois Moncrief

Performance appraisals give managers an excellent opportunity to engage employees, enhance employee motivation, and turbo charger employee performance. Here are 7 Steps to take for better results:

1. Establish Performance Standards that are SMART (specific, measurable, attainable, relevant, and time bound). Meet with your employee at the beginning of the evaluation period to go over the standards for the coming year. Ensure that your employee understands the criteria that will be used for his evaluation. Allow your employee to make comments and suggestions. When an employee is allowed to participate in the process and the standards, he will have more buy in.

2. Progress Reviews Should Be Done Monthly or at Least Quarterly. This can be a monthly report on progress on all performance standards submitted by the employee and reviewed and approved by the manager. A meeting to discuss the progress review is recommended. You, as the manager, taking the time for a meeting and giving feedback put the employee on notice that this is important to you and that you are holding him accountable to the standards. Take the time to be sure you know what the employee has really accomplished. Ask for proof in the form of copies and reports. Verify the progress independently even if it is just spot checks.

Place any employee who falls short in one or more elements on a 90 day Performance Improvement Plan before the end of the evaluation period. When an employee knows he is being held accountable, the responsibility for his success or failure is truly his. 3. Focus on Accomplishments not Activities. Being busy is not the same as being productive. If you are using competency based performance evaluations be sure to not evaluate the skill or competency such as adaptable but the accomplishment that resulted from the use of the skill how being adaptable produced results for the company bottom line. 4. Evaluate Fairly and Objectively. Do not use subjective performance standards that are moving targets that you can change at whim depending upon how you have predetermined the employee should be evaluated. (Dont laugh. It happens.) Do not use absolute standards. Do not use always or never. No one has perfect performance that is an absolute. Example: Never makes a mistake. Always arrives on time. There needs to be an acceptable range with an opportunity to exceed and a possibility of not meeting. Employees lose motivation when they can see a no win.

5. No Bad Surprises! Never allow there to be any bad surprises in the final annual performance evaluation. All employees should already have a good idea where they stand before they receive the final evaluation. If you have had progress reviews with employees, mentored them as needed, used SMART goals, and allowed opportunities to bring performance up to meets (including a performance improvement plan) then each employee is truly responsible for his outcome. His evaluation should not be a surprise to him. This should avoid a situation for a surprised and angry employee to take desperate and retaliatory action.

6. Deal with Failure in a Timely Manner. If an employee is unable to meet the standards after you have regularly reviewed his progress with him, mentored him, and placed him on a performance improvement plan then it is time to demote, transfer to a lower job he can do, or fire him. Taking the necessary action helps all employees to be motivated when they see there are consequences for nonperformance. 7. Reward Your Stars Well. It is important to reward those who have done well. Recognize their accomplishments. This will encourage

more outstanding work from them and send a message to others that it pays to perform well.

Techniques That Can Be Used to Improve Performance Evaluations By Luanne Kelchner, eHow Contributor Performance evaluations can help an employer improve employee morale, increase production and provide important feedback to workers. Supervisors and managers can ensure positive results from performance evaluations by improving the techniques used to evaluate workers. The upper management of a corporation can offer training and education to support efforts by direct supervisors to improve the quality of performance appraisals. Employee Input Employee self-appraisals provide an area of discussion during a performance appraisal. Both the supervisor and employee can offer viewpoints on the worker's performance during the review period. Workers can highlight special projects or work that helped the department improve. Supervisors can offer viewpoints on specific areas the employee may not consider when performing a self-appraisal.

 Regular Feedback Performance appraisals improve when the worker receives regular feedback during the review period. An evaluation should not contain any surprises for the employee whether the performance is good or poor. Letting workers know about a potential problem during the review period allows the worker to take steps to improve performance. Positive feedback allows the employer to motivate the worker before the formal evaluation. Goal Setting During the employee evaluation, the supervisor and worker should set goals for the employee to work toward during the period between reviews. This provides the worker with something to strive toward in the workplace. Supervisors should express an interest in the employee's success in the organization, which can motivate workers. Supervisor Training An organization should train supervisors in providing motivation to workers through performance appraisals. Training can teach supervisors to provide constructive criticism to workers while encouraging them to continue improving their performance. Supervisor training can also teach how to provide balance in a performance

review with both constructive criticism and positive feedback. Peer Evaluations Managers and supervisors can inquire about a worker's performance from coworkers, clients and other managers who have contact with the employee. This can help the supervisor provide a balanced viewpoint for a performance appraisal. Peer evaluations also assist the supervisor who has little interaction with workers.

DATA ANALYSIS AND DISCUSSION Organizations need to employ valid and reliable instruments to measure its performance and so with their members. Likewise, the policies that guide the organization in assessing performance must be clear to all its members or else it will be subject to various interpretations that could have adverse repercussions. The right tools in measuring, analyzing information and making conclusions must be utilized with utmost care to arrive at a reasonable decision. The functions of performance appraisal are various. One, it helps in determining how every member fulfils his or her role and responsibility. Another, it offers insights how stakeholders and clients appreciate the services which the organization members deliver. In addition,

with the use of a valid and reliable instrument, an employee can be appraised comprehensively avoiding the bias of judging his performance based on isolated observations. With the generated data, supervisors and managers can guide their employees in improving their competencies for efficacy. Lastly, performance evaluation can be used as determining instrument for the needed reinforcement to enhance the employees selfesteem and motivations towards work. With those purposes that evaluations serve for the organization and its members, the choice of evaluation instrument is critical. In evaluation, both the qualitative and quantitative aspect of analysis must be considered. When an instrument is highly dependent on numerical data, decisions will have to be based on the result of statistical analysis. When the instrument allows for collecting qualitative data, those must be analyzed appropriately. In both analyses, generalizations have to be grounded on the data. Statistically, the levels of analysis can be descriptive, inferential to the rather more complex analyses. These are essential in making informed decisions. Qualitatively, the responses must fit those of the quantifiable obtained data. Otherwise, there will be inconsistency that may lead to failure in making informed decision. With numerical data, simple statistical analysis can be valuable already.

In doing so, one can have a grasp of the performance holistically. Performance has to be evaluated holistically, or else the evaluation fails. On the merits of having high performance standards, with several components being evaluated, specific weights must be apportioned to the components. This reduces bias and so increases the validity and reliability of the evaluation process. Hence, evaluators cannot just set their eyes on a fluke in the data when everything else in the data says otherwise. There is a joke among researchers and academics, numbers do not lie but the interpreters of the data can do so. Statistical quandary can either result from manipulation of data or from the incompetency due to lack of knowledge to the side of the evaluator or researcher. If these happen, then the interpretations of the evaluator can be judged a hoax. Here is one case to illustrate statistical quandary. Assuming that a company is using a valid and reliable instrument that combines both quantitative and qualitative measures of constructs; that the performance evaluation is taken at several times and data is obtained from various groups; that the performance is evaluated in three different components; and that the policy states that an employee to move from ranks must obtain a very

satisfactory rating during the period of evaluation; evaluators should be able to arrive at an informed decision. XYZ Inc. has all those set in the system, but surprisingly its board of evaluators could not decide whether to promote an employee to a higher rank because with one group at one time in that year, the employee had an unsatisfactory rating. In XYZ Inc., Zsazha, an employee, filed for a promotion. The board reviewed her records but did not arrive at the point when they need to make a decision. She was evaluated for the past year, 16 times, in three terms, among different groups at different time intervals. This case can be considered like a panel study. She had 97% attendance efficiency. She had actively been involved in her organization through her pro-bono services. She had continuing education and professional development. She is even recognized in her participation as resource person, speaker and researcher locally and internationally. She has been serving the company for more than five years, and never actually got a promotion coming from her supervisors initiative. But, becauseshe failed in one out of the 16 evaluations, her request for promotion is still on the table of discussion, yet in all the rest of her evaluations she scored very satisfactory to outstanding.

Applying simple descriptive statistics, one should understand that the power of one is insignificant to the value of 15 among 16 sets of evaluation data. The data will nearly show that 6.25% of the respondents does not approve of her performance. But the data also shows that over the entire whole group surveyed appreciated her performance to be very satisfactory (93.75%). There are actually more groups who gave Zhasha outstanding rating for her performance. The presiding officer of the evaluation board argues that an employee to merit promotion should have very satisfactory rating in all components during the term of evaluation. To arrive at a qualitative interpretation of the value, the statistician applies taking the general average or mean of the scale responses. The general average of all the ratings in the term of evaluation says that Zhasha had very satisfactory rating, but the evaluators eyes were so focused on that single group that gave her an unsatisfactory rating. With such kind of analysis, the other ratings have lost value. The judgment was bias based on single isolated case. The role of evaluation using several cases, at different terms has not served its cause. One can see then that the evaluation used was not to obtain a comprehensive understanding of ones performance, but or is it a mere instrument to find fault?

That single case should not be singled out nor should it be emphasized. But the evaluators assume that is how the system is. If so, there is a problem with the existing system, not in the evaluation instrument, not in its administration, but in the system of thinking of those interpreting the data and those making decisions out of the data that they have. The said case should call the attention of the employer to reflect and consistently aspire to be more effective in the work. Zhashas ratings were consistent, so far as the numbers tell throughout the evaluation period, yes except at one single case. But the overall rating for that term where the fluke is still says that she was very satisfactory in three components being evaluated. Probably, it is the definition of the component that causes the misinformation. This is because the evaluators assume that the component refers to any of the elements in the period of evaluation. That broad construct would then mean to include timing, case, number of respondents, performance areas and others. But it should not exclude the general rating or average score and interpretation. Yet, the policies which are accessible to all employees do not tell in all components and it does not define what components are and what they include. The illustration teaches us that policy ambiguity, the inadequate knowledge of evaluators in examining and

interpreting numerical data can result to a dilemma. My basis of analysis was merely on the level of applying descriptive statistics. To arrive at a justifiable conclusion to Zhashas case or at least a reasonable decision, I challenge her evaluators to place the data in various statistical analyses to test the hypothesis: That Zhashas performance during the period of evaluation is not satisfactory. I do see the merit of putting the highest benchmark because that will reinforce productivity. Although, XYZ Inc., may be too idealistic to assume that an employee can get 100% very satisfactory rating in all components. For Zhasha, in the three panel surveys conducted she had received 100% very satisfactory rating. However, that is not how the evaluators see the case because their ignorance dictates them the very satisfactory performance is not statistically significant and it is not consistent, since they are looking at a tree and assume that it is the forest. This case is so revealing that a company can strive to keep the strictest measure without applying the least reasonable tool to come up with decisions over elementary statistical figures. It is saddening that while the company intends to maintain high standards, the standard of thinking of its administration is to abide by the pre-existing system without actually interrogating

how the system really work for organizational productivity and the motivation of its employees. More than 90 percent of private sector organizations have some type of performance appraisal system in place because they believe the systems are effective. PERFORMANCE APPRAISAL RESULTS-2005
4500 4000 3500 3000 2500 2000 1500 1000 500 0

3934

987 80
UNSATISFACTORY HAS POTENTIAL FULLY SUCCESSFUL

993 89
SUPERIOR DISTINGUISHED

Employee Feedback on the Process In September 2005, the Human Resources Department surveyed employees, with 1,324 responses. A clear majority of the survey participants responded favorably to the Employee Performance

Appraisal Process, including the appraisal form and each phrase of the process. The rating response ranged from 56% to 85% favorable regarding the Performance Planning and Performance Review Phases of the process. Survey results suggest that more training and coaching are needed to increase the number of supervisors conducting performance discussions throughout the year and providing feedback or demonstrating ways to improve employee performance.

CONCLUSION The analysis and interpretation of data on study of performance appraisal techniques and its application to enhance motivation at workplace led to the following conclusions:

1. The promotions rule though defined need to be communicated to every employee before appraisal process is done and also justify the promotion as a result of the appraisal. That the promotion policy followed differs at different position and category. Uniformity has to there in the implementation of promotion policy at all levels.

2. The appraisal outcome has to be used frequently for the purpose of reward on performing well together with the feedback on the performance. Also when performance goes down employee has to be given feedback and motivated to do better. 3. The organization at present doesnt provide career planning and career suggestion plans. 4. In organizations feedback is being provided to the employee though on a few occasion. 5. Performance appraisal in maximum organizations is done on an annual basis. 6. More emphasis is on training and job rotation as remedial measures. 7. The mechanism of counselling pre-performance and post-performance is not in practice at the organization in strict term.

Future Scope of the Research

The scope of any performance appraisal should include the following: To know whether employees are satisfied with the policies of organization & provide employees with a better understanding of their role and

responsibilities; increase confidence through recognizing strengths while identifying training needs to improve weaknesses; improve working relationships and

communication between supervisors and subordinates; increase commitment to organizational goals; develop employees into future supervisors; assist in personnel decisions such as promotions or allocating rewards; and allow time for self-reflection, self-appraisal and personal goal setting. BIBLIOGRAPHY The data collected is taken from following sites and some books like: Some sites name:
http://howtomotivateemployeesnow.com http://eHOW.com http://MANAGEMENTPARADISE.com http://www.leadership-and-motivation-training.com/ http://en.wikipedia.org http://rodrigo75.wordpress.com/

Some books name: Organizational Behaviour by Robbins.