CHAPTER-I

INTRODUCTION
Human Resources Management:
Human Resource Management (HRM) is the function within an organization
that focuses on recruitment of, management of, and providing direction for the people
who work in the organization. Human Resource Management can also be performed
by line managers.
Human Resource Management is the organizational function that deals with
issues related to people such as compensation, hiring, performance management,
organization development,

safety, wellness,

benefits,

employee

motivation,

communication, administration, and training.

Human resource management (HRM )is the strategic and coherent approach to
the management of an organization's most valued assets - the people working there
who individually and collectively contribute to the achievement of the objectives of
the business.[1] The terms "human resource management" and "human resources"
(HR) have largely replaced the term "personnel management" as a description of the
processes involved in managing people in organizations.[1] In simple words, HRM
means employing people, developing their capacities, utilizing, maintaining and
compensating their services in tune with the job and organizational requirement.

Human Resources Development:

Human Resource Development (HRD) is the framework for helping

employees develops their personal and organizational skills, knowledge, and abilities.
Human Resource Development includes such opportunities as employee training,
employee career development, performance management a
development, coaching, mentoring, succession planning, keyemployee
identification, tuition assistance, and organization development.

The focus of all aspects of Human Resource Development is on developing

the most superior workforce so that the organization and individual employees can
accomplish their work goals in service to customers.
Human Resource Development can be formal such as in classroom training, a
college course, or an organizational planned change effort. Or, Human Resource
Development can be informal as in employee coaching by a manager. Healthy
organizations believe in Human Resource Development and cover all of these bases.
Performance Appraisal System:
Performance appraisal refers to all the formal procedures used to evaluate an
individual, his contributions and potential. In other words, it is to plan and measure
the performance of an individual in terms of the requirement of the job or it is a
process of finding out how effective the organization has been at hiring and placing
an employee.
Performance appraisal is a formal system of review and evaluation of
individual or team task performance. While evaluation of team performance is critical
when teams exist in an organization, the focus of performance appraisal in most firms
remains on the individual employees. Regardless of the emphasis, an effective
appraisal evaluates accomplishments and initiates plans for development, goals and
objectives.
NEED FOR THE STUDY

Appraising the performance of individuals, groups and organizations is a

common practice of all societies. While in some instances these appraisal processes
are structured and formally sanctioned, in other instances they are an informal and
integral part of daily activities. Consciously of unconsciously evaluate our own
actions from time to time. In social interactions, performance is conducted a
systematic and planned manner to achieve widespread popularity in recent years.
Performance appraisal is essential to understand and improve the employee's
performance through HRD. In fact, performance appraisal is the basis fore HRD. It
was viewed performance appraisal was useful to decide upon employee promotion /

transfer salary determination and the like. But the recent developments in human
resources management indicate that performance appraisal is the basis for employee
development. Performance appraisal indicates the level of desired performance level,
level of actual performance and the gap between these two. This gap should be
bridged through human resources development techniques like training executive
development etc.
According to the past survey it was noticed that the performance appraisal
system in this company was not up to the mark. Hence there would be scope for
giving few suggestions as per my knowledge to improve the performance appraisal
system which was quite essential for the better performance of the employees.
IMPORTANCE OF THE STUDY
Performance appraisals provide employees and managers with opportunities to
discuss areas in which employees excel and those in which employees need
improvement. Performance appraisals should be conducted on a regular basis, and
they need not be directly attached to promotion opportunities.
Personal Attention
During a performance appraisal review, a supervisor and an employee discuss
the employee's strengths and weaknesses. This gives the employee individual face
time with the supervisor and a chance to address personal concerns.
Feedback
Employees need to know when their job duties are being fulfilled and when
there are issues with their work performance. Managers should schedule this
communication on a regular basis.
Career Path
Performance appraisals allow employees and supervisors to discuss goals that
must be met to advance within the company. This can include identifying skills that
must be acquired, areas in which one must improve, and educational courses that must
be completed.
Employee Accountability

When employees know there will be regularly scheduled evaluations, they

realize that they are accountable for their job performance.
Communicate Divisional and Company Goals
Besides communicating employees' individual goals, employee appraisals
provide the opportunity for managers to explain organizational goals and the ways in
which employees can participate in the achievement of those goals.
OBJECTIVES OF THE STUDY

To study the need and importance of Performance Appraisal.

To portray the profile of RLS SOLUTIONS.

To study the performance appraisal implementation in RLS SOLUTIONS.

To make data analysis and interpretation based on the perception of the

employee in the organization.

To summarize and find certain suggestions for the impotent of Performance

Appraisal system in the company.

METHODLOGY OF THE STUDY

After the objective of the study has clearly stated, the next step in formal
research project is to determine the source from which the data is required to be
collected. The data collection is an interesting aspect of the study achieving data
effectively the information consists of two types of data. The diagram is as follows:
Data collections:
a) Primary data:
The primary data are those, which are collected freshly and for the first time,
from the employees directly. It is collected through the following methods.
Questionnaire: A structure of questionnaire was prepared and distributed
among the employees & workers.
Interview: Personal interviews and interaction with the employees and
contractor labour.
Observation: By observing the working environment.

b) Secondary data:
The secondary data are those which have already been collected by someone
or else which have been passed through statistical process. Sources of secondary data
can be categorized into two broad categories named published and unpublished
statistics, also collected from various files, records and RLS SOLUTIONS.
Size:
A sample of 40 employees has been selected .Although it looks to be a small
sample keeping in view the large number of employees it has to be limited because of
time constraint(8 weeks).Even then the sample size is not considered to be small. It is
enough to draw conclusions.
Type:
Since employees from all levels (strata) namely the top level, the middle level,
and the lower level are bound to experience stress, the sample has to include
employees from all levels. Stratified random sampling technique was selected while
preparing questionnaire as this was the only technique that helped to draw conclusions
accurately.
LIMITATIONS OF THE STUDY
As the study revolves around the performance appraisal of human resources aspects
the overall organization performance cannot be ascertained. In spite of giving honest
and sincere efforts there are several limitations, which are as follows:
The period of study is only for about 2months, which is a major constraint.
The perception bias or attitude of the respondents may also act as hurdles to
the study.
The study is only confined to performance appraisal.
The study cannot be oriented with all HRM practices followed by

 The sample size taken for the research is small due to the constraint of time.

RESEARCH METHODOLOGY
Research has wider scope; Research refers to a scientific and systematic
search for relevant information on a specified topic. It involves defining research
objectives and gathering information through primary and secondary data depending
on type of research conducted and finally analyzing the collected data.
RESEARCH DESIGN:
Research Design refers to framework or plan for a study that guides the collection
and analysis of data. A typical research design of a company basically tries to
resolve the following issues:
a) Determining Data Collection Design
b) Determining Data Methods
c) Determining Data sources
d) Determining Primary Data Collection Methods
e) Developing Questionnaires
f) Determining Sampling Plan
1) Explorative Research Design:
Explorative studies are undertaken with a view to know more about the problem.
These studies help in a proper definition of the problem, and the development of
specific hypothesis is to be tested later by more conclusive research designs. Its basic
purposes are to identify factors underlying a problem and o determines which one of
them needs to be further researched by using rigorous conclusive research designs.
2) Conclusive Research Design:
Conclusive Research studies are more formal in nature and are conducted with a view
to eliciting more precise information for purpose of making marketing decisions.
These studies can be either:
A) Descriptive or
B) Experimental

Thus, it was mix of both the tools of Research Design that is, Explorative as well as
Conclusive.
Introduction to performance appraisal
Globalization of economy has put the organization under tough competition.
Thus, survival of an organization depends on the performance. We may consider
performance of an organization as the sum of the total performance of each
individual. In fact, performance management has today occupied an important role.
People in the organization work to achieve organizational goals. But, people
do not behave in expected manner. Again, performance is the product of employees
ability, knowledge and skill. Once the employee has been selected, trained and
motivated, he is then appraised for his performance.
Performance appraisal is the step where the management finds out how
effective it has been at hiring and placing employees. Hence its evaluation at regular
interval is necessary to know whether employee stand in the organization context.
Thus, appraising the performance of individuals, groups and organizations is a
common practice of all societies.
CHARACTERISTICS
1.

Performance Appraisal is a process.

2.

It is the systematic examination of the strengths and weakness of an

employee in terms of his job.

3.

It is scientific and objective study. Formal procedures are used in the study.

4.

It is an ongoing and continuous process wherein the evaluations are arranged

periodically according to a plan.

5.

The main purpose of Performance Appraisal is to secure information

necessary for making objective and correct decision an employee.

PROCESS
The process of performance appraisal:
1.

Establishing performance standards

2.

Communicating the Standards

3.

Measuring Performance

4.

Comparing the actual with the standards

5.

Discussing the appraisal

Taking Corrective Action

LIMITATIONS
1.

Errors in Rating

2.

Lack of reliability

3.

Negative approach

4.

Multiple objectives

5. Lack of knowledge

METHODS OF PERFORMANCE APPRAISAL

The foregoing list of major program pitfalls represents a formidable challenge, even
considering the available battery of appraisal techniques. But attempting to avoid
these pitfalls by doing away with appraisals themselves is like trying to solve the
problems of life by committing suicide. The more logical task is to identify those
appraisal practices that are (a) most likely to achieve a particular objective and (b)
least vulnerable to the obstacles already discussed.
Before relating the specific techniques to the goals of performance appraisal stated at
the outset of the article, I shall briefly review each, taking them more or less in an
order of increasing complexity.
The best-known techniques will be treated most briefly.
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 selection
situations, particularly those involving professional, sales, or managerial positions,
essay appraisals from former employers, teachers, or associates carry significant
weight.

GRAPHIC RATING SCALE

This technique may not yield the depth of an essay appraisal, but it is more consistent
and reliable. Typically, a graphic scale assesses a person on the quality and quantity
of his work (is he outstanding, above average, average, or unsatisfactory?) and on a
variety of other factors that vary with the job but usually include personal traits like
reliability and cooperation. It may also include specific performance items like oral
and written communication.
FIELD REVIEW
The field review is one of several techniques for doing this. A member of the
personnel or central administrative staff meets with small groups of raters from each
supervisory unit and goes over each employee's rating with them to (a) identify areas
of inter-rater disagreement, (b) help the group arrive at a consensus, and (c) determine
that each rater conceives the standards similarly.
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.
MANAGEMENT BY OBJECTIVES
To avoid, or to deal with, the feeling that they are being judged by unfairly high
standards, employees in some organizations are being asked to set - or help set - their
own performance goals. Within the past five or six years, MBO has become
something of a fad and is so familiar to most managers that I will not dwell on it here.
RANKING METHODS
For comparative purposes, particularly when it is necessary to compare people who
work for different supervisors, individual statements, ratings, or appraisal forms are
not particularly useful. Instead, it is necessary to recognize that comparisons involve
an overall subjective judgment to which a host of additional facts and impressions
must somehow be added. There is no single form or way to do this.

BJECTIVES OF PERFORMANCE APPRAISAL

Measures an employees performance.

Helps in clarifying, defining, redefining priorities and objectives.

Motivates the employee through achievement and feedback.

Facilitates assessment and agreement of training needs.

Helps in identification of personal strengths and weaknesses.

Plays an important role in Personal career and succession planning.

Clarifies team roles and facilitates team building.

Plays major role in organizational training needs assessment and analysis.

Improves understanding and relationship between the employee and the

reporting manager and also helps in resolving confusions and
misunderstandings.

Plays an important tool for communicating the organizations

philosophies, values, aims, strategies, priorities, etc., among its employees.

Helps in counseling and feedback.

Appraisal Process:
Each step in the process is crucial and is arranged logically. 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.

Objectives of
Performance appraisal

Establish job
Expectations

Design an appraisal
Programme

Appraise performance

Performance
Interview

Use appraisal data for

Appropriate Purpose

1. Objectives of Appraisal: Objectives of appraisal include effecting promotions and

transfers, assessing training needs, awarding pay increases, and the like. The
emphasis in all these is to correct the problems.

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.
3. Design appraisal programme: Designing an appraisal programme posses several
questions which need answers. They are (i) Formal versus informal appraisal; (ii)

Whose performance is to be assessed? (iii) Who are the raters? (iv)What problems
are encountered? (v) How to solve the problems? (vi) What should be evaluated?
(vi i ) When to evaluate? (vii i) What methods of appraisal are to be used?

4. Performance Interview: Performance interview is another step in the appraisal

process. Once appraisal has been made of employees, the raters should discuss and
review the performance with the rates, so that they will receive feedback about where
they stand in the eyes of superiors.

5. Use of Appraisal data: The final step in the evaluation process is the use of
evaluation data. The data and information generated through performance evaluation
must be used by the HR department.
Methods of Performance Appraisal:
With the evaluation and development of appraisal system, a number of
methods or techniques of performance appraisal have been developed.The important
among them.
Traditional Methods
1) Graphic Rating Scales:
Graphic rating scales compare individual performance to an absolute standard.
In this method, judgments about performance are recorded on a scale. This is the
oldest and widely used technique. This method is also known as linear rating scale or
simple rating scale. The appraisers are supplied with printed forms, one for each
employee. These forms contain a number of objectives, behavior and trait - based
Qualities and characters to be rated like quality and volume of work, job knowledge,
dependability, initiative, attitude etc., in the case of workers and analytical ability,
creative ability, initiative, leadership qualities, emotional stability in the case of
managerial personnel. These forms contain rating of scales. Rating scales are of two
types, viz., continuous rating scale and discontinuous rating scales. In continuous
order like o, 1, 2, 3, 4 and 5 and in discontinuous scale the appraiser assigns the point
to each degree. The points given by the rater know performance regarding each

character. The points given by the rater to each character are added up to find out the
overall performance. Employees are ranked on the basis of total points assigned to
each one of them.
One reason for the popularity of the rating scales is its simplicity, which
permits many employees to be quickly evaluated. Such scales have relatively low
Design cost and high in case of administration. They can easily pinpoint significant
dimensions of the job. The major draw back to these scales is their subjectivity and
low reliability. Another limitation is that the descriptive words often used in such lies
may have different meanings to different raters.
2) Ranking Method:
Under this method the employees are ranked from best to worst on some
characteristics. The rater first finds the employee with the highest performance and
the employees with the lowest performance in that particular job category and rates
the former as the best and the later as the poorest. Then the rater selects the next
highest and next lowest and so on until he rates all the employees in that group.
Ranking can be relatively easy and inexpensive, but its reliability and validity may be
open to doubt. It may be affected by rater bias or varying performance standards.
Ranking also means that somebody would always be in the backbench. It is possible
that the low ranked individual in one group may turnout to be superstar in another
group. One important limitation of the ranking method is that size of the different
between individuals is not well defined. For instance, there may be little difference
between those ranks third and fourth.
3) Paired Comparison Method:
This method is relatively simple. Under this method, the appraiser ranks the
employees by comparing one employee with all other employees in the group, one at
a time. As illustrated, this method results in each employee being given a positive
comparison total and a certain %age total positive evaluation.

Example:

To compute Employee's positive evaluations:

Number of positive evaluations X 100 = Employee's % Superior evaluation
Total number of evaluations
Employee A

Employee B

Employee C

(0/4)* 100=0%

(2/4)* 100=50%

Employee

Employee E
(4/4)* 100=100%

(1/4)* 100=25% (3/4)

* 100 = 75%

4) Forced Distribution Method:

The rater may rate his employees at the higher or at the lower end of the scale
under the earlier methods. Forced distribution method is developed to prevent the
raters from rating too high or too low. Under this method, the rater after assigning the
points to the performance of each employee has to distribute his ratings in a pattern to
conform to normal frequency distribution. Thus, similar to the ranking technique,
forced distribution requires the raters (supervisors) to spread their employee
evaluation in a prescribed distribution. This method eliminates central tendency and
leniency biases. However, in this method employees are placed in certain ranked
categories but not ranked within the categories. Quite often work groups do not reflect
a normal distribution or individual performance. This method is based on the
questionable assumption, as group of employees will have the same distribution of
excellent, average and poor performers. If one department has all outstanding

employees, the supervisor would find it extremely difficult to decide who should be
placed in the lower categories. Difficulties can also arise when the raters most explain
to the employee why he was placed in one grouping and others were placed in higher
groupings.
5) Checklist Methods:
The Checklist is a simple rating technique in which the supervisor is given a
list of statement or words and asked to check statements representing the
characteristics and performance of each employee. There are three types of checklist
methods, viz, simple checklist, weighted checklist and forced choice method.
(a) Simple Checklist Method:
The checklist consists of large number of statements concerning employee
behavior.
Example: Simple Checklist Method,
RLS Solutions.,
Performance Appraisal Form
Name of Employee:
Number:
Designation:
Department:
Checklist of Qualities:
1. Behavior is the employee punctual in attending the office?
A) Yes
2.

B)No

Does the employee behave courteously with his superiors?

A) Yes

B) No

3. Does the employee maintain sound customer relations'?

A) Yes

B) No

4. Is the employee sincere in doing his job?

A) Yes

B) No

The rater checks to include if the behavior of an employee is positive or

negative to each statement. Employee performance is rated on the basis of number of
positive checks. The negative checks are not considered in this method. A difficulty
often arises because the statements may appear to be virtually identical in describing
the employee. The words or statements may have different meanings to different
raters.
(b)Weighted Checklist:
The weighted checklist method involves weighting different items in the
checklist having a series of statements about an individual, to indicate that some are
more important than others. The rater is expected to look into the questions relating to
the employee's behavior, the attached rating scale (or simply positive /negative
statements where such a scale is not provided) and tick those traits that closely
describe the employee behavior. Often the weights are not given to the supervisors
who complete the appraisal process, but are computed and tabulated by someone else,
such as a member of the personnel unit. In this method the performance ratings of the
employee are multiplied by the weights of the statements and coefficients are added
up. The cumulative coefficient is the weighted performance score of the employee.
Weighted performance score is compared with the overall assessment standards in
order to find out the overall performance of the employee.
The weighted checklist, however, is expensive to design to design, since
checklist for each different job in the organization must be produced. This may prove
time consuming also in the end. Though the weighted checklist method is evaluative
as well as development, it has the basic problem of the evaluator not knowing the
items, which contribute mostly of successful performance.
(C) Forced Choice Method:
This method was developed at the close of World War II. Under this
method, a large number of statements in groups are prepared. Each group consists of

four descriptive statements (treated) concerning employee behavior. Two statements

are most descriptive (favorable) and two are least descriptive (unfavorable) of each m
tetrad. Sometimes there may be five statements in each group out of which one would
be neutral. The actual weightings of the statements are kept secret.
The appraiser is asked to select one statement that that mostly describes
employee's behavior out of the two favorable statements are kept secret. The appraiser
is asked to select one statement that that mostly describes employee's behavior out of
the two unfavorable statements. The items are usually a mixture of positive and
negative statements. The intent is to eliminate or greatly reduce the rater's personal
bias, specially the tendency to assign all high or low ratings. The items are designed
to discriminate effective from ineffective workers as well as reflect valuable personal
qualities.
6) Critical Incident Method:
Employees are rated discontinuously, i.e., once in a year or six months under the
earlier methods. The performance rated may not reflect real and overall performance,
as the rater would be serious about appraisal method, i.e., critical incident method has
been developed. Under this method, the supervisor continuously records the critical
incidents of the employee performance or behavior relating to all characteristics (both
positive and negative) in a specially designed notebook. The supervisor rates the
performance of his subordinates on the basis of notes taken by him. Since the critical
incident method does not necessarily have to be a separate rating system, it can be
fruitfully employed as documentation of the reasons why an employee was rated in a
certain way.
The critical incident method has the advantage of being objective because the
rater considers the records of performance rather than the subjective points of opinion.
7) Essay or Free From Appraisal:
This method requires the manager to write a short essay describing each
employee's performance during the rating period. This format emphasizes evaluation
of overall performance, based on strengths weakness of employee performance,
rather than specific job dimensions. By asking supervisors to enumerate specific

examples of employee behavior, the essay technique minimizes supervisory bias and
halo effect.
8) Group Appraisal:
Under this method, an employee is appraised by a group of appraisers. This
group consists of the immediate supervisor of the employee, to other supervisors who
have close contact with employee's work, manager or head of the department and
consultants. The head of the department or manager may be the chairman of the
group and the immediate supervisor may act as the coordinator for the group
activities. This group uses any one or multiple techniques discussed earlier. The
immediate supervisor enlightens others members about the job characters, demands,
standards of performance etc. Then the group appraises the performance of the
employee, compares the actual performance with standards, find out the deviations,
discusses the reasons therefore, suggests ways for improvement of performance,
prepares action plans, studies the need for change in job analysis and standards and
recommends change, it necessary. This method is widely used for purpose of
promotion, demotion and retrenchment appraisal.

9) Confidential Report:
Assessing the employee's performance confidentially is a traditional method of
performance appraisal. Under this method, superior appraises the performance of his
subordinates based on his observations, judgments and institutions. The superior
keeps his judgment and report confidentially. In other words the superior does not
allowed the employee to know the report and his performance. Superior writes the
report about his subordinates, strengths. Weakness, intelligence, attitude to work,
sincerity, commitment, punctuality, attendance, conduct, character, friendliness, etc,
Though confidential report is a traditional method, most of the public sector
organizations still follow this method in appraising the employee's performance. This
method suffers from a number of limitations.
Modern Methods
1) Behaviorally Anchored Rating Scales (BARS):

The Behaviorally Anchored Rating Scales (BARS) method combines

elements of the traditional rating scales and critical incidents methods. Using BARS,
job behaviors from critical incidents - effective and ineffective behaviors are
described more objectively. The method employs individuals who are familiar with a
particular job to identify its major components. They then rank and validate specific
behaviors for each of the components. BARS require considerable employee
participation; its acceptance by both supervisors and their subordinates may be
greater. Proponents of BARS also claim that such a system differentiates among
behavior, performance and results, and consequently is able to provide a basis for
setting developmental goals for the employee. Because it is job - specific and
identities observable and measurable behavior, it is more reliable and valid method
for performance appraisal.
2) Assessment Centre:
This method of appraising was first applied in German Army in 1930. Later
business and industrial houses started using this method. This is not a technique of
performance appraisal by itself. In fact it is a system or organization, where
assessment is done by several individuals and also by various experts by using
various techniques.
In this approach individual from various departments are brought together to
spend two or three days working on an individual or a group assignment similar too
the ones they'd be handling when promoted. All assess get an equal opportunity to
show their talents and capabilities and secure promotion based on merit. An
assessment model is shown below.
Human Resource Accounting deals with cost of and contribution of human
resource to the organization. Cost of the employee includes cost of manpower
planning, recruitment, selection, induction, placement, training, development, wages
and benefits etc. employee contribution is the money value of employee service
which can be measured by labour productivity or value added by human resources.
3) Management by objectives:
Although the concept or management by objectives was advanced by Peter
F.Duckers way back in 1954, it was described only recently as 'large range' in

performance appraisal. Refinements brought out by George Odione, Valentines,

Humble and others have enriched the concept and made it more acceptable all over
the globe as an MBO in their work settings. Some of the companies which
implemented MBO reported excellent results, others disappointments, and many in
decisions. Started briefly, MBO is a process whereby the superiors and subordinate
managers of an organization j oi nt l y identify its common goals, define each
individual's major areas of responsibility in terms of results excepted of him, and use
these measures of guides for operating the unit and assessing the contribution of its
members. Generally, the unit and assessing the contribution of its members.
Generally the 1 VIBO is undertaken along the following lines.

The subordinate and superior jointly determine goals to be accomplished

during the appraisal period and what level of performance is necessary for
the subordinate to satisfactory achieve specific goals.

During the appraisal period the superior and subordinate update and later
goals as necessary due to changes in the business environment.

4) Psychological Appraisal:
Psychological appraisal are conducted to asses the employee potential,
Psychological appraisal consist of
(a) In - depth interviews
(b) Psychological tests
(c) Consultations and discussions with the employee
(d) Discussions with the superior's sub-ordinates and peers
(e) Reviews of others evaluations.
Evaluation is conducted in the areas of (a) employee's intellectual abilities, (b)
Emotional stability, (c) motivational responses, (d) sociability, (e) employees ability
to comprehend the vents, and (f) ability to foresee the future.
5) Counseling:
After the performance of the employee is appraised, the superior should
inform the employee about the level of his performance, the reason for the same,

need for and the methods of improving the performance. The superior should
counsel the employee about his performance and the methods of improving it.
Counseling is a planned, systematic intervention in the life of an individual
who is capable of choosing the goal and the direction of his development. Thus,
the purpose of counseling is to help the employee aware of his own performance,
his strengths and weakness, opportunities availabilities available for performance
counseling can be done in the form of performance interview by the superior.

The Post Appraisal Interview:

The post appraisal interview has been considered by most of the organizations,
as well as employees, as the most essential part of appraisal system. This interview
provides the employee the feedback information, and an opportunity to appraiser to
explain the employee his rating, the traits and behavior he has taken into consideration
for appraisal etc.
It also gives the opportunity to employee to explain his views about the rates,
standards or goals, rating scale, internal and external environment causes for low level
of performance, his resources responsible for performance etc. further it helps both
the parties to review standards, set new standards based on the reality factors, and
helps the appraiser to offer his suggestions, help, guide and coach the employee for
his advancement. Thus, the post appraisal interview is designed to achieve the
following objectives.
To let employees know where they stand.
To help employees do a better job by clarifying what is expected of them;
To plan opportunities for development and growth;
To strengthen the superior -subordinate working relationship by developing a
mutual agreement of goals;
To provide an opportunity for employees to experience themselves
on performance related issues.

Relating Performance Appraisal to Rewarding:

Management should recognize and performance. The forms of recognizing and

rewarding performance include: (a) Private and public praise, (b) Written
commendation, (c) published commendation, (d) increased autonomy, (e) change in
job title, (f) Status symbols like office space, furnishings, (g) performance bonuses,
(h) salary increases, (i) promotion in grade, or increase in responsibilities and (j)
various forms of supplementary compensation. Managers should match the rewards
both with performance and with the perception and needs of the employee.
6) Managerial Appraisal:
It is relatively easy to appraise the performance of technical or operative
employees compared to managerial personnel. This is because; the performance of
operative employees can be measured quantitatively, whereas the performance of
managers cannot be determined quantitative terms. Harold Koontz has developed a
concept of managerial functions, viz., planning, organizing, leading motivating,
staffing and controlling. Performing a number of or series of activities can perform
each of these functions. For example, performing staffing functions requires
performing a series of activities like analyzing jobs of his department, planning for
human resources, deciding upon internal and external recruitment. Thus each function
and sub functions of manager are elaborated into a series of activities. The checklist
contain the questions in these areas is prepared with a five degree rating scale, i.e.,
externally poor performance, neither poor nor fair performance and externally fair
performance. Thus this technique measures the performance of managers in
managing organizational environment.
Importance of performance appraisal:
For many organizations the primary goal of an appraisal system is to
improve individual and organizational performance. There may be other goals,
however. In fact, performance appraisal data are potentially valuable for virtually
every human resource functional area.
System Of Performance Appraisal:
Performance appraisal is a nine-step process:
1. Establish performance standards.

2. Communicate standards/expectations to employee.

3. Measure actual performance due to the environment influences.
4. Adjust the actual performance due to the environmental influences.
5. Compare the adjusted performance what that of others and previous.
6. Compare the actual performance with standards and find out deviations, if
any.
7. Communicate the actual performance to the employee concerned.
8. Suggest changes in job analysis and standard, if necessary.
9. Follow-up performance appraisal report.
At the first stage, performance standards are established based on the job
description and job specification. The standard should be clear, objective and
incorporate all the factors.
The second stage is to inform these standards to all the employees including
appraisers.
The third stage is following the instructions given for appraisal, measurement
of employee performance by the appraisers through observations, interviews, records
and reports.
Fourth stage is finding out the influence of various internal and external
factors on actual performance. The influence of these factors may be either inducing
or hindering the employee performance. The measured performance may be adjusted
according to the influence of external and internal factors. The performance derived
at this stage may be taken actual performance.
Fifth stage is comparing the actual performance with that of other employees
and pervious performance of the employee and others. This given an idea where the
employee to the influence of external and internal factors. The performance derived at
this stage may be taken actual performance.
Sixth stage is comparing the actual performance with the standards and
finding out deviations. Deviations may be positive or negative. If employee's
performance is more than standards, it is positive deviation and vice-versa is negative
deviation.

Seventh stage is communicating, the actual performance of the employee and

other employees doing the same job and discuss with him about the reasons for the
positive or negative deviations from the pre-set standards as the case may be.
Eighth stage is suggestions necessary changes in standards in standards, job
analysis, and internal and external environment.
Ninth stage is follow-up of performance appraisal report. This stage includes
guiding, counseling, coaching and directing the employee or making arrangements for
training and development of the employee in order to ensure improved performance.
If actual performance is very poor and beyond the scope of improvement
it is necessary to take steps for demotion or retrenchment or any other suitable
measure.
Key elements of performance appraisal system are presented in figure below.

Human

Performance

Employee

Performance

Appraisal

Feedback

Performance
Measures

Performance Related
Standards

Human Resources
Decisions

Employee
Records

Problems in performance appraisal:

Performance appraisal has come under a heavy barrage of criticism. The list
of the problems that have been associated with performance appraisal are as
follows:

A potential weakness of traditional appraisal methods is that they lack

objectivity.

A huge challenge that impedes an effective performance evaluation is the bias,

which can be either positive or negative.

Some times halo error occurs when a manager generalizes one

positive performance feature or incident to all aspect of employee
performance.

Leniency: - Giving an undeserved high performance appraisal

rating to an employee.

The usual steps are as follows

Plan the performance

Determine responsibility for appraisal

Appraisal period

Examine work performed

Appraisal the results

Conduct appraised interview

Discuss goals for next period

Establishment of performance appraisal criteria:

The most common appraisal criteria are traits, behaviors, competencies, goal
achievement, and improvement potential. The main objective of establishment of
performance criteria is to identify the aspects of a person's performance that an
organization should evaluate.
Traits: Certain employee traits such as attitude, appearance, and initiative are the
basis for some evaluations.
Behaviors: When an individual's task outcome is difficult to determine, organizations
may evaluate the person's task related behavior or competencies. If certain
behaviors result in desired outcomes, there is merit in using them in the
evaluation process.
Competencies: This includes a broad range of knowledge, skills, traits, and behaviors that may
be technical in nature, relate to interpersonal skills or be business oriented.
Goal achievement: If organizations consider ends more important than means, goal
achievement outcomes become an appropriate factor to evaluate.
Improvement potential: When organizations evaluate their employees* performance, many of the criteria
used focus on the past. From a performance management view point the problem is that you
cannot change the past. Unless a firm takes further steps, the evaluation data become merely
historical documents. Therefore firms should emphasize the future, including the behaviors
and outcomes needed to develop the employee, and in the process achieve the firm's goals.
This involves an assessment of the employee's potential.

Characteristics of an effective appraisal system:

The basic purpose of a performance appraisal system is to improve performance of
individuals, teams, and the entire organization. The system may also serve to assist in the
making of administrative decisions concerning pay increases, transfers, or terminations. In
addition, the appraisal system must be legally defensible. Organizations should seek an
accurate assessment of performance that permits the development of a plan to improve
individual and group performance.
The following factors assist in accomplishing these purposes;
Job related criteria: Job relatedness is perhaps the most basic criteria in employee performance
appraisal. More specifically, evaluation criteria should be determined through job
analysis.
Performance expectations: Managers and sub-ordinates must agree on performance expectations in advance of
the appraisal period. On the other hand, if employees clearly understand the expectations,
they can evaluate their own performance and may timely adjustments as they perform their
jobs without having to wait for the formal evaluation review.
Standardization: Firm should use the same evaluation instrument for all employees in the same
job category- who work for the same supervisor. Supervisors should also conduct
appraisals covering similar periods for these employees. Regularly scheduled feedback
sessions and appraisal interviews for all employees are essential.
Trained appraisers: The individual or individuals who observe at least a representative sample of job
performance normally have the responsibility for evaluating employee performance. This
person is often the employee's immediate supervisor. Training should be given to these
appraisers to ensure accuracy and consistency. A training module posted on the internet or
company intranet may serve to provide information for managers as needed.

Continuous open communication: Most employees have a strong need to know how well they are performing. A
good appraisal system provides highly desired feedback on a continuing basis. There should
be few surprises in the performance review.
Performance reviews: A performance review allows them to detect any errors or omissions in the
appraisal, or an employee may simply disagree with the evaluation and want to challenge it.
Constant employee performance documentation is vitally important for accurate
performance appraisal.
Due process: Ensuring due process is vital. If the company does not have a formal grievance
procedure, it should develop one to provide a employees an opportunity to appeal appraisal
results that they consider inaccurate or unfair. They must have a procedure for pursuing
their grievances and having them addressed objectively.

CHAPTER-IV
PROFILE OF COMPANY & INDUSTRY

Company Overview
RLS WORLD is a global leader in transforming and running business
processes and operations, including those that are complex and industry-specific. RLS
WORLD stands for Generating Impactvisible in tighter cost management as well as
better management of risk, regulations, and growth for hundreds of long-term clients
including more than 100 of the Fortune Global 500. Our approach is distinctive:
through an unbiased, agile combination of smarter process science, targeted
technology and advanced analytics, we help our clients become more competitive by
making their enterprises more intelligent: adaptive, innovative, globally effective, and
connected to their own clients.

RLS WORLD began in 1997 as a business unit. This heritage has contributed
to our deep understanding of process. As made Lean and Six Sigma pervasive, RLS
WORLD applied this same industrial engineering ethos to business processes
operations for the first time. Built with single-minded passion for process science and
operational excellence, RLS WORLDs Smart Enterprise Processes methodology
focused on business impact while safeguarding costs and limiting initial investment
igniting the global Business Process Outsourcing (BPO) services industry. In January
2005, RLS WORLD became an independent company, bringing our process expertise
and unique to global clients.

RLS WORLD has accumulated significant expertise over the past 16 years of
specialized work with hundreds of enterprises. We remain loyal to our heritage of
operational excellence as an extension of our clients business reflected by the best
client satisfaction scores in the industry. Our experienced management team drives
client partnerships personally and manages global operations in India

, with

main offices in Hyderabad City where key executives and corporate functions are
based. Generating Impact Since 1997
Our History
RLS WORLD has a unique heritage, which has contributed to our deep
understanding of process. We began in 1997 as a business unit within building the
company from the ground up. Our charter was to provide business process services to
businesses, with the goal of enabling outstanding efficiencies. During the eight years
that followed, we earned the opportunity to manage a wide range of processes from
the simple to complex, operating across financial-services and manufacturing
businesses.
Info group Capital became RLS WORLDs largest shareholder in November 2012
with the strategic objective to grow the company further.

RLS WORLD has created a culture that emphasizes customer centricity,

teamwork, and continuous process improvement. Our culture is expressed through our
values that embody our core ideology and define who we are. Based on the
foundation of unyielding integrity and acting as a compass to guide our thoughts and
actions, our values serve as our organizations pillars.
A Client-Centric Culture
RLS WORLDs operations are a seamless extension of our clients operations.
Our strong operating culture defines our process effectiveness, aimed at delivering
real business results and strategic value to our clients. We integrate our capabilities
with those of our clients to drive business process effectiveness with the objective to
increase efficiencies and improve business outcomes. We see our relationships with
clients as strategic, long term, and enduring. We believe that honest and regular client
feedback enriches our relationships. Our feedback sessions are one-on-one or revolve
around regular client forums that stimulate new thinking and thought leadership. It
also enables our clients to share best practices and connect with industry experts and
peers. This differentiated Client Advisory Group, consisting of top CXOs, helps us
address common client problems, share insights, shape new focus areas and strategies,
and further strengthen our client relationships.

Introduction
The insurance BPO market has witnessed its highest activity in the last two
years. The number of insurance contracts signed in 2011-2012 was more than
double the number signed during the peak of the global economic downturn of
2008-2009, which also affected insurance companies severely. As the capital
expands, insurers are looking at BPO as a key tool to cut costs, improve
operations and manage regulations. Service providers are, in turn, differentiating
their offerings through better technology, strong delivery capabilities, and the
ability to serve niche segments.
The

insurance

BPO

service

provider

profiles

provide

accurate,

comprehensive, and fact-based snapshots of leading service providers in the

insurance BPO market. Important aspects covered include a comprehensive
picture of the providers service suite, scale of operations, technology solutions,
and delivery locations, along with Everest Groups assessment of the provider.
Content
The RLS WORLD profile provides the following insurance BPO-specific details:

Insurance BPO service suite and scale of operations: Includes service provider
service suite, FTEs, revenue, and recent developments

Insurance BPO delivery locations: Includes city-level detail of key delivery

locations across the world

Insurance BPO capabilities and clients: Includes major insurance BPO

engagements, revenue split by geography, FTE split by line of business & location,
and number of contracts by buyer size

Insurance BPO technology solutions: Includes brief profiles of key technology

solutions in the insurance BPO space

Everest Groups assessment: Includes the position of the service provider on the
Everest Group PEAK Matrix, market share & delivery capability assessment, and
overall remarks on the capabilities of the service provider.

RLS WORLD provides end-to-end solutions that enhance organizational

processes and extend the power to harness the Web for your Business. We optimize
real-world functions with innovative use of Technology and User-centric
Designs. Our services include Strategic Consulting for Employee Relationships,
and Solutions and Audience Development.
Business development is among the foremost concerns of any organization,
and as a manager, much of your attention will be devoted to developing and
exploiting the business opportunities that are presented to you and your company.
Business development and making your organization successful is reliant on good
knowledge of.
We are committed to providing our clients with a cost effective service that is
both responsive and sensitive to their needs. The Business Development Consultancy
operates as an arms-length Trading Agency. Our overall aim is to help organizations
and individuals to achieve excellence in the management and delivery of public
services.
Small business development contains a paradox if the business turns out to
be successful then it wont be so small any more. The challenge, then, is that of
developing a small business to grow while retaining the elements that made it
successful in the first place. Form core on business development achieve high level of
customer relationship management with the help of RLS world business which
makes you identify and define your processes and then create working models to
achieve improved automation process to increase high client handling and satisfaction
levels. We recommend and create processes required to increase efficiency by
interacting with you to understand your requirement.
Market research
To undertake marketing effectively, businesses need information. Information
about customer wants, market demand, competitors, distribution channels etc.
Marketers often complain that they lack enough marketing information or the right
kind, or have too much of the wrong kind. The solution is an effective marketing
information system.
The information needed by marketing managers comes from three main sources:

(1) Internal company information

E.g. sales, orders, customer profiles, stocks, customer service reports etc)
(2) Marketing intelligence
This can be information gathered from many sources, including suppliers,
customers, and distributors. Marketing intelligence is a catch-all term to include all
the everyday information about developments in the market that helps a business
prepares and adjust its marketing plans. It is possible to buy intelligence information
from outside suppliers who set up data gathering systems to support commercial
intelligence products that can be profitably sold to all players in a market.
(3) Market research
Management cannot always wait for information to arrive in bits and pieces
from internal sources. Also, sources of market intelligence cannot always be relied
upon to provide relevant or up-to-date information (particularly for smaller or niche
market segments). In such circumstances, businesses often need to undertake specific
studies to support their marketing strategy - this is market research.
Our consultants possess hands-on technical experience, as well as excellent
communications and people skills that allow them to quickly become productive
members of any project team. They bring the kind of expertise and tools needed to
help you build a successful business system.
RLS WORLD provides traditional consulting services as well as off-site
development work facilitated via Internet communications.
RLS WORLD Software Solutions Consulting Service division provides you
highly skilled and trained technical consultants for specific assignments. You get the
right skills for the required time frame under your direct supervision.
RLS WORLD Consulting Services division gives you the flexibility to bring
on skilled professionals for specific projects without added headcount and the
associated hassles. You have the advantage of having highly skilled and trained
technical staff for the duration that you desire.
Our technical consultants are available world-wide and have a range of expertise.

RLS WORLD offers highly competitive rates with a very flexible approach.
We work either on an hourly rate or we can work out a monthly rate for our
consultants. In the normal mode, consultants remain full-time employees of RLS
WORLD, but under special circumstances,
RLS WORLD is willing consider contract-to-hireordirect-hiresituations.
Our aim is to provide as many solutions as possible, so that we can exceed your
expectations.
Offshore development offshore Outsourcing has proved to be a differentiating
factor for companies, offering cost, time and quality advantages. Today, it is common
practice to look to distant shores for:

Expertise in latest technology

Rapid deployment

Lowered Costs

Offshore outsourcing is a gain-risk proposition, powerful and perilous. Offshore

development is as much about technical skills and quality as it is about a relationship
based on compatibility, trust and mutual respect.
FMCG is the acronym of Fast Moving Consumer Goods which is also known as
Consumer Packaged Goods (CPG). Fast moving consumer goods are products that
have a quick turnover, and relatively low cost. FMCG generally include a wide range
of often purchased consumer products such as toiletries, soap, cosmetics, teeth
cleaning products, shaving products and detergents, as well as other non-durables
such as glassware, bulbs, condoms, batteries, paper products and plastic goods. The
purchasers usually put less thought into the purchase of FMCG than they do for other
durable products such as electronic items. In comparison with other industries such as
automobiles, computers, and airlines, FMCG business has a steady rate of growth, for
it does not suffer from huge recession and layoffs every time the economy starts to
dip. In FMCG business absolute profit made on the products is relatively small. Since
they generally sell in large numbers, the overall profit on such products can be huge.

Sector Outlook
FMCG is the fourth largest sector in the Indian Economy with a total market
size of Rs. 60,000 crores. FMCG sector generates 5% of total factory employment in
the country and is creating employment for three million people, especially in small
towns and rural India.
Analysis of FMCG Sector
Strengths:
1. Low operational costs
2. Presence of established distribution networks in both urban and rural areas
3. Presence of well-known brands in FMCG sector
Weaknesses:
1. Lower scope of investing in technology and achieving economies of scale,
especially in small sectors
2. Low exports levels
3. "Me-too" products, which illegally mimic the labels of the established brands.
These products narrow the scope of FMCG products in rural and semi-urban market.
Opportunities:
1. Untapped rural market
2. Rising income levels i.e. increase in purchasing power of consumers
3. Large domestic market- a population of over one billion.
4. Export potential
5. High consumer goods spending

Threats:
1. Removal of import restrictions resulting in replacing of domestic brands
2. Slowdown in rural demand
Tax and regulatory structure
To undertake marketing effectively, businesses need information. Information
about customer wants, market demand, competitors, distribution channels etc.

Marketers often complain that they lack enough marketing information or the
right kind, or have too much of the wrong kind. The solution is an effective marketing
information system.
The information needed by marketing managers comes from three main sources:
(1) Internal company information
E.g. sales, orders, customer profiles, stocks, customer service reports etc)
(2) Marketing intelligence
This can be information gathered from many sources, including suppliers,
customers, and distributors. Marketing intelligence is a catch-all term to include all
the everyday information about developments in the market that helps a business
prepares and adjust its marketing plans. It is possible to buy intelligence information
from outside suppliers who set up data gathering systems to support commercial
intelligence products that can be profitably sold to all players in a market.
(3) Market research
Management cannot always wait for information to arrive in bits and pieces
from internal sources. Also, sources of market intelligence cannot always be relied
upon to provide relevant or up-to-date information (particularly for smaller or niche
market segments). In such circumstances, businesses often need to undertake specific
studies to support their marketing strategy - this is market research.
RLS WORLD ,provide software in various it sectors,and it is also having nonit relationships, as a part of it enabled services ,RLS WORLD had developed
enormous projects in various languages,
We are also in to the non-it works and we outsource the man power in the
various sectors of the management such as executives, marketing managers, managers
etc, we are well known for our placements in various industries and thus satisfying
our clients to much extend.

Business development is among the foremost concerns of any organization,

and as a manager, much of your attention will be devoted to developing and

exploiting the business opportunities that are presented to you and your company.
Business development and making your organization successful is reliant on good
knowledge

of

best

practice

and

management

theories.

We are committed to providing our clients with a cost effective service that is
both responsive and sensitive to their needs. The Business Development Consultancy
operates as an arms-length Trading Agency. Our overall aim is to help organizations
and individuals to achieve excellence in the management and delivery of public
services.

Small business development contains a paradox if the business turns out to

be successful then it wont be so small any more. The challenge, then, is that of
developing a small business to grow while retaining the elements that made it
successful in the first place. For more on business development Achieve high level of
customer relationship management with the help of RLS world business which
makes you identify and define your processes and then create working models to
achieve improved automation process to increase high client handling and satisfaction
levels. We recommend and create processes required to increase efficiency by
interacting with you to understand your requirement.
Market research
To undertake marketing effectively, businesses need information. Information
about customer wants, market demand, competitors, distribution channels etc.
Marketers often complain that they lack enough marketing information or the right
kind, or have too much of the wrong kind. The solution is an effective marketing
information system.
The information needed by marketing managers comes from three main sources:
(1) Internal company information
E.g. sales, orders, customer profiles, stocks, customer service reports etc)
(2) Marketing intelligence
This can be information gathered from many sources, including suppliers,
customers, and distributors. Marketing intelligence is a catch-all term to include all
the everyday information about developments in the market that helps a business
prepares and adjust its marketing plans. It is possible to buy intelligence information
from outside suppliers who set up data gathering systems to support commercial
intelligence products that can be profitably sold to all players in a market.

(3) Market research

Management cannot always wait for information to arrive in bits and pieces
from internal sources. Also, sources of market intelligence cannot always be relied
upon to provide relevant or up-to-date information (particularly for smaller or niche
market segments). In such circumstances, businesses often need to undertake specific
studies to support their marketing strategy - this is market research.

CHAPTER-IV
DATA ANALYSIS AND INTERPRETATION

Human Resources are the greatest assets for any organization.

These

recourses should be developed to their fullest extent for the efficient functioning of an
organization and their performance needs to appraise continuously.
The present study is aimed at analyzing the Performance Appraisal system
at RLS SOLUTIONS. There is a felt, need and justification to conduct surveys and to
know the perceptions of employees regarding existing practices. A structured
questionnaire has been surveyed among 40 respondents by adopting strata technique.
And their perceptions are analyzed and interpreted in this chapter.
For the purpose of survey, a sample of 40 employees has been taken into
consideration with a view to assess the "Performance Appraisal System" in RLS
SOLUTIONS Performance appraisal helps in the assessment of individual potential.

Table-4.1 Performance Appraisal is the assessment of individual potential.

S.No.
1
2
3
4
5

No.

Rating Scale
Strongly Agree
Neutral
Strongly Disagree
Agree
Disagree
Total

of

Respondents
7
4
0
29
0
40

In%
17.5
10
0
72.5
0
100

Graph-4.1
30
25
20
15
Series1

10
5
0
Strongly
Agree

Neutral

Srtongly
Disagree

Agree

Disagree

Analysis:
From the above table-4.1 it can be known that 72 % of respondents have
agreed about the assessment of individual potential and 17.5 % of them have
strongly agreed of the above statement and 10 % of the employees are in a neutral
stage and where none of them have disagreed for the above statement. So majority
of the respondents i.e. 72.5 % of the respondents have agreed about the assessment
of individual potential.

Interpretation: From the above analysis we can interpret that, some of the
employees were in neutral position, because the appraisal system in the organization
was not in a full fledge way.

Table-4.2 : Performance Appraisal system followed in the organization is rational

and fair.

S.No.

No.

Rating Scale

of

ln%

respondents
1.
2.
3.
4.
5.

Strongly Agree
Neutral
Strongly Disagree
Agree
Disagree
Total

1
12
1
22
4
40

2.5
30
2.5
55
10
100

Graph-4.2
25
20
15
10

Series1

5
0
Strongly
Agree

Neutral

Srtongly
Disagree

Agree

Disagree

Analysis:
From the above table-4.2 it can be known that, 55% of respondents have
agreed that die performance appraisal system followed in the organization rational
and fair and 30 of the respondents are in neutral stage. Whereas 2.5pciceiU of the
respondents have agreed for the above statement and 2.5petce&t of the respondents
have strongly disagreed, where 10 % of the respondents have disagreed for the above
statement.

Interpretation: From the above analysis we can interpret that, some of the
employees were in neutral position. Because the organization doesnt following the
companys policies fairly.

Table-4.3 : Job expectations are informed and the superiors set the tasks.
S, No.
1.

Rating Scale
Strongly Agree

2.
3.

Neutral

No. of respondents In%

3

7.5

10

25

Strongly Disagree 0

4.

Agree

24

60

5.

Disagree

7.5

Total

40

100

Graph-4.3
25
20
15
10

Series 1

5
0
Strongly
Agree

Neutral

Strongly
Disagree

Agree

Disagree

Analysis: From the above table-4.3 it can be known that, 60% of respondents have
agreed that the job expectations are informed and the superiors set die tasks. And 25%
of die respondents are in neutral stage and 7,5% strongly agree for above statement
and where as 7.5% of the respondents disagree for die above statement, none of them
are in a stage of strongly disagree opinion.

Interpretation: The above analysis shows that, some of employees were in neutral
position. Because the job expectations were not informed, and the tasks were not
assigned by superiors properly.

Table-4.4 : Performance Appraisal followed in the Organization helps to the

Training and development needs of employee.
S.No.

Rating Scale

No. of

In%

respondents
1.
2.
3.
4.
5.

Strongly Agree
Neutral
Strongly Disagree
Agree
Disagree
Total

6
4
0
27
3
40

15
10
0
67.5
7.5
100

Graph4.4
30
25
20
15
Series 1

10
5
0
Strongly Neutral Strongly
Agree
Disagree

Agree

Disagree

Analysis:
From the above table-4.4 it is found that, 67.5% of respondents have agreed for the
performance appraisal followed in the organization helps to assess the training and
development needs of employee and I5 % of them have strongly agreed in ID-% of
the respondents are in neutral stage and the remaining 7.5% of the respondents are in
disagreed opinion. Where none of them are is strongly disagreed opinion.

Interpretation: The above analysis states that, majority of the employees opined
that a good performance appraisal system in the organization, helps to train and
develop an employee in all aspects.

Table-4.5 The Performance appraisal in the organization helps to recognize the

competence and potential of an individual.

S.No.

No.

Rating Scale

of ln%

respondents
1.

Strongly Agree

10

2.
3.
4.
5.

Neutral
Strongly Disagree
Agree
Disagree
Total

3
1
J
30
2
40

7.5
2.5
75
5
100

Graph-4.5
30
25
20
15
Series 1

10
5
0
Strongly
Agree

Neutral

Strongly
Disagree

Agree

Disagree

Analysis: From the above table-4.5 it is found that, 75% of respondents have agreed
for the performance appraisal in the organization helps to recognize the competence
and potential of individual and 10 % of the respondents have strongly agreed, and
7.5% of the respondents are in neutral stage and 5% are in disagreed opinion where as
2.5% of the respondents strongly disagree for the above statement.

Interpretation: The above analysis elicits that, some of the employees were in
neutral and disagree position. Because the appraisal process in the organization is not
that much effective

Table-4.6 : Employees are happy with the assessment of performance followed in the organization.
No.

S.No.

Rating Scale

1.

Strongly Agree

2.
3.
4.
5.

Neutral
Strongly Disagree
Agree
Disagree
Total

of ln%
respondents
3
7.5
14
0
18
J
5
40

35
0
45
12.5
100

Graph-4.6
20
15
10
Series 1
5
0
Strongly
Agree

Neutral

Strongly
Disagree

Agree

Disagree

Analysis: From the above table-4.6 it is found that, 45% of respondents have agreed that they are
happy with the assessment of performance appraisal followed in the organization. And 35 % of the
respondents are in neutral stage and 12.5% of the respondents are in a disagreed stage where 7.5%
have strongly agreed for the above statement but none of them have strongly disagreed for this
statement.

Interpretation: We can interpret that, most of the employees were in disagree and neutral
position. Because the assessment system in the organization was not up to the mark.

Table-4.7 : Employees have been appraised fairly according to the company's policies.
of In %

No.

S. No.

Rating Scale

1.
2.
3.
4.
5.

Strongly Agree
Neutral
Strongly Disagree
Agree
Disagree
Total

respondents
2
13
0
23
2
40

5
32.5
0
57.5
5
100

Graph-4.7
25
20
15
10

Series 1

5
0
Strongly
Agree

Neutral

Strongly
Disagree

Agree

Disagree

Analysis: From the above table-4.7 it is found that, 57.5% of respondents have agreed that the
employees have been appraised fairly according to the company policies and 32.5% of the
respondents are neutral stage and 5% of them are strongly agree and where as 5% of the respondents
disagree for the above opinions and none of them have disagree for the above opinion.

Interpretation: Here we can state that, most of the employees were in disagree and neutral
position. Because performance appraisal was not done fairly according to the companies policies .

Table-4.8 :Advises and suggestions are given to the employees during the appraisal process.
S. No.

Rating Scale

No.

of

In%

respondents
1.
2
3.
4.
5.

Strongly Agree
Neutral
Strongly Disagree
Agree
Disagree
Total

3
15
0
10
12
40

7.5
37.5
0
25
30
100

Graph-4.8
16
14
12
10
8
Series 1

6
4
2
0
Strongly
Agree

Neutral

Strongly
Disagree

Agree

Disagree

Analysis: From the above table4.8 it is found that, 30 % of respondents have disagreed that advises
and suggestions are given to the employees during the appraisal process and 25% of them have
agreed and 7.5% of the respondents strongly agree and majority of the respondents i.e. 37.5% are in a
neutral stage and none of them have disagreed for the above statement.

Interpretation: The above analysis exhibits that, employees are expecting many more suggestions
and advises, during the appraisal process that would be helpful for their career.

Table-4.9 : The employees accept the appraisal feed back as.

S. No.
1.
2.
3.
4.

Rating Scale No.

Of %

respondents
Positive way 3
Uninteresting 15
Negative way 0
Neutral
10
Total
40

7.5
37.5
0
25
100

Graph-4.9:

16
14
12
10
Series 1

8
6
4
2
0
Positive way

Uninteresting

Negative way

Netural

Analysis: From the above table-4.9 it is found that, 50% of respondents have a positive
way regarding acceptance of the appraisal feedback. And 47.55 of them are in a neutral
opinion and 2.5% of the respondents feel it uninteresting on the above statement. And none
of them have a negative acceptance of this statement.

Interpretation: This analysis shows that, employees are not much interested in taking the
appraisal feedback.

Table-4.10 :The appraiser of the company should be.

S.No.

Rating Scale

No.

of

1.
2.
3.
4.

Superior
HOD
Subordinate
Peer groups
Total

respondents
13
25
1
1
40

In%
32.5
62.5
2.5
2.5
100

Graph-4.10

25
20
15
Series 1

10
5
0
Superior

Subordinate

Analysis: From the above table-4.10 it is found mat, 62.5perecent of respondents feel that
their HOD should be their appraiser and 32.5% of them feel that their superior should be the
appraisal and 2.5% of the respondents feel that their subordinates and peer groups should be
the appraiser.

Interpretation: This states that, the appraiser should be the head of the department, the employee
feel that he is the right person to evaluate their performance.

Table-4.11 : Employee need to be assessed as.

S.No.

Rating Scale
Once in 3 months
Once in 6 months
Once in a year
Total

1.
2.
3.

No.

of

In%

respond
eents 8
11
21
40

20
27.5
52.5
100

Graph-4.11

25
20
15
10

Series 1

5
0
Once in 3 Once in 6 Once in a
months
months
year

Analysis: From the above table-4.11 it is found that, 52.5% of respondents feel that their appraisal
system should be once in a year and 27.5% of the respondents feel that it should be twice in a year (6
months) and where as 20% of the respondents feel that it should be for every 3 months.

Interpretation: Here, the employees felt that, they need to be assessed once in a year, as they felt
it is a right period of time to assess the performance.

Table-4.12 : The performance appraisal followed in the organization makes the employees.
S.No Rating Scale
1
2

No.

of In%

Respondents
Motivating
38
95
De motivating
2
5

Graph-4.12

Analysis: From the above table-4.12 it is found that, 95% of respondents are motivated towards
performance appraisal followed in the organization and 5 % of the respondents demotivates for the
above statement.
So majority of the respondents i.e.. 95 % of the respondents have motivated towards the appraisal
system followed in the organization.

Interpretation: From the above study, employees felt performance appraisal system as a
motivating factor.

Table-4.13 : Types of errors / problems have impact on performance rating in the Organization.
S. No

Rating Scale

1
2
3
4
5
6

Influence
Attitude
Biased
Personal Grudge
Subjectivity
Status Effect

No

of In%

Respondents
9
16
8
1
5
1

22.5
40
20
2.5
12.5
2.5

Graph-4.13

Analysis: From the above table-4.13 it is observed that, appraisal system is rated by attitude that is
40% and 22.5% of the respondents by influence and 20% by biased, 12.5% by subjectivity and 2.5%
by personal grudge and remaining 2.5% by status effect.

Interpretation: The employees opined that, attitude factor have a greater impact on the
performance appraisal system.

Table -4.14 : Feedback on Performance is communicated after assessment of the Performance.

S.No Rating Scale No
1
2

Yes
No

of In%

Respondents
19
47.5
21
52.5

Graph-4.14

Analysis: From the above table-4.14 it is found that, 52.5% of respondents disagree that feed back
on performance is communicated after assessment of the performance appraisal. And 47.5% of the
respondents agree for the above statement.
So majority of the respondents i.e. 52.5 % of the respondents have disagreed that the
feedback on performance is communicated after assessment of the performance appraisals.

Interpretation: Here, the some of the employees express their view that, the performance
feedback need not be communicated after the assessment, while some of them felt that it is
essential.

Table-4.15 : Employees are aware of 360-degree appraisal.

S.No Rating Scale No of Respondents
Yes
11
1
No
29
2

In%
27.5
72.5

Graph-4.15

Analysis: From the above table-4.15 it is found that, 72.5% of respondents are aware of 360degree appraisal and 27.5% of die respondents are not known of 360-degree appraisal.
So majority of the respondents i.e.. 72.5 % of the respondents have agreed that they
were aware of 360 degree appraisal.

Interpretation:
Here from the above study it is known that, the employees are not completely aware of 360degrees appraisal system.

FINDINGS

More than half of the employees (72.5%) agree that Performance Appraisal is the
assessment of individual potential.

Some of the employees (30%) neutral that Performance Appraisal system followed in the
organization is rational and fair.

Some of the employees (25%) neutral that Job expectations are informed and the
superiors set the tasks.

Most of the employees (67.5%) agree that Performance Appraisal followed in the
Organization helps to the Training and development needs of employee.

Some

of the employees (5%) disagrees that The Performance appraisal in the

organization helps to recognize the competence and potential of an individual

Less than half of the employees (35%) disagrees that they are happy with the assessment
of performance followed in the organization.

Most of the employees (32.5%) neutral that they have been appraised fairly according to
the company's policies.

Most of the employees (30%) disagrees that Advises and suggestions are given to the
employees during the appraisal process.

Most of the employees (37.5%) uninterestingly accept the appraisal feedback.

Most of the employees (62.7%) feel that appraisal should be given by HOD.

Most of the employees (52.5%) that they need to be assessed as once in a year.

All most of the employees (95%) feels that the performance appraisal followed in the
organization makes the employees Motivated.

Most of the employees (40%) think that attitude have impact on performance rating in the
Organization.

Most of the employees (52.5%) do not agree that Performance is communicated after
assessment of the Performance.

SUGGESTIONS
As per the study the following are the suggestions:

The Performance Appraisal in the organization should be in a full fledge way so that the
others will be accepting this.

As the Performance Appraisal is helpful to the employees by the assignment of superiors

task by training & development which should be more effective so that the other
employees will also be attracted.

The Performance Appraisal should be assist effectively to the employees as it recognizes

the competence and potential of an individual.

Employees appraisal should be fairly done according to the companies policies so that it
will assist the performance of the employees.

The company should give some advises and suggestions to the employees during the
process and should get there feedbacks about the process.

The employees should assess and appraised by their HOD once in a year.

The employees should be aware of 360 degrees appraisal and the organization should
follow this to motivate the employees.

CONCLUSION

The options required strong motivation to face the challenges.

Proper training and satisfaction at all levels will be the strongest foundation to
launch an assault on the challenges and convert the challenges to opportunities
through effective performance appraisal measures in the organization.

In future performance appraisal measures will have to be planned in relation to the

changes taking place.

The performance measures leads exist both at fresh entry level as well as to
continuing education level for working personnel.

An effective safety measures based on emerging trends suggests model for

achieving the targets which will make paper industry in India truly competitive.

BIBLIOGRAPHY
Books:

Donald L. Kirkpatrick, 2006, Improving Employee Performance through Appraisal and

Coaching.

Richard Rudman, 2003, Performance Planning and Review.

Roger E. Herman, 1997, The Process of excelling, oak Hill press.

P. Subba Rao, 2006, Essentials of Human Resource Management and Industrial

Relations, Himalaya Publishing House.

Journals:

Gitam Journal of Management.

Journal of Occupational and Environmental medicine.

Indian Journal of Social Work.

Indian Journal of Human Resource.

ANNEXURE

1. Is Performance Appraisal helps in the assessment of individual potential?

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

2. Does the Performance Appraisal system followed in the organization is rational and fair?

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

3. Whether the Job expectations are informed and the superiors set the tasks?

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

4.

Does the performance Appraisal followed in the organization helps to assess

the training and development needs of employee?

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

5. Does the Performance appraisal in the organization helps to recognize the

competence and potential of an individual?

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree
6. Whether the employees happy with the assessment of Performance followed in the
organization?

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

7. Does the Employees appraised fairly according to the companys policies?

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

8. does the Advises and suggestions are given to the employees during the appraisal
process?

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

9. How do the employees accept the appraisal feedback?

Positive way

Negative way

Uninteresting

Neutral

10. Who should be the appraiser?

Superior

Subordinate

HOD

Peer group

11. How often should an employee be assessed?

Once in 3months
Once in 6months

Once in a year
12. How the performance appraisal followed in the organization?

Motivate
Denominative
13. What types of errors / problems have impact on performance rating in
the organization?
Influence

Biased

Attitude

Personal Grudge

Subjectivity

Status Effect

14. Whether the Feedback on performance communicated after assessment of the

Performance?
Yes

No

15. Are you aware of 360-degree appraisal?

Yes

No