INTRODUCTION

HUMAN RESOURCE MANAGEMENT

Human resource management is a function in organizations designed to maximize employee
performance in service of their employers strategic objectives.HR is primarily concerned
with how people are managed within organizations, focusing on policies and systems. HR
departments and units in organizations are typically responsible for a number of activities,
employee recruitment, training and development, performance appraisal, and rewarding
(e.g., managing pay and benefit systems). HR is also concerned with industrial relations, that
is, the balancing of organizational practices with regulations arising from collective
bargaining and governmental laws.
HR is a product of the human relations movement of the early 20th century, when researchers
began documenting ways of creating business value through the strategic management of the
workforce.

The

function

was

initially

dominated

by

transactional

work,

such

as payroll and benefits administration, but due to globalization, company consolidation,

technological advancement, and further research, HR now focuses on strategic initiatives
like acquisitions,talent, succession,planning, industrial and labor relations,and diversity and
inclusion.
In startup companies, HR's duties may be performed by trained professionals. In larger
companies, an entire functional group is typically dedicated to the discipline, with staff
specializing in various HR tasks and functional leadership engaging in strategic decision
making across the business. To train practitioners for the profession, institutions of higher
education, professional associations, and companies themselves have created programs of
study dedicated explicitly to the duties of the function. Academic and practitioner
organizations likewise seek to engage and further the field of HR, as evidenced by several
field-specific publications. HR is also a field of research study that is popular within the
fields of management and industrial, with research articles appearing in a number of
academic journals, including those mentioned later in this article.
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In the current global work environment, most companies focus on lowering employee
turnover and retaining the talent and knowledge held by their workforce. New hiring not only
. Entails a high cost but also increases the risk of the newcomer not being able to replace the
person who was working in that position before. HR departments also strive to offer benefits
that will appeal to workers, thus reducing the risk of losing knowledge.

Human Resource (or personnel) management, in the sense of getting things done through
people, is an essential part of every managers responsibility, but many organizations find it
advantageous to establish a specialist division to provide an expert service dedicated to
ensuring that the human resource function is performed efficiently. People are our most
valuable asset is a clich, which no member of any senior management.

PERFORMANCE APPRAISAL
Human resources can be thought of as the total knowledge, talents aptitudes, creative abilities
of an organization work force as well as the value, attitude and beliefs of the individuals
involve.- -LEONC.MEGGINSON
Personnel management effectively describes the process of planning and directing the
application development and utilization of human resources in employment.- -DALE YODER
Performance Appraisal is defined as the process of assessing the performance and progress of
an employee or a group of employees on a given job and his / their potential for future
development. It consists of all formal procedures used in working organizations and potential
of employees. According to Flippo, Performance Appraisal is the systematic, periodic and an
important rating of an employees excellence in matters pertaining to his present job and his
potential for a better job.
A performance appraisal is a systematic and periodic process that assesses an individual
employees job performance and productivity in relation to certain pre-established criteria
and organizational objectives. Other aspects of individual employees are considered as well,
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such as organizational citizenship behavior, accomplishments, potential for future

improvement, strengths and weaknesses, etc.
To collect Performance Appraisal data, there are three main methods: objective production,
personnel, and judgmental evaluation. Judgmental evaluations are the most commonly used
with a large variety of evaluation methods. Historically, Performance Appraisal has been
conducted annually (long-cycle appraisals); however, many companies are moving towards
shorter cycles (every six months, every quarter), and some have been moving into short-cycle
(weekly, bi-weekly) Performance Appraisal. The interview could function as providing
feedback to employees, counseling and developing employees, and conveying and discussing
compensation, job status, or disciplinary decisions. Performance Appraisal is often included
in performance management systems. Performance Appraisal helps the subordinate answer
two key questions: first, "What are your expectations of me?" second, "How am I doing to
meet your expectations?"
Performance management systems are employed to manage and align" all of an
organization's resources in order to achieve highest possible performance. How performance
is managed in an organization determines to a large extent the success or failure of the
organization. Therefore, improving Performance Appraisal for everyone should be among the
highest priorities of contemporary organizations.
Some applications of Performance Appraisal are compensation, performance improvement,
promotions, termination, test validation, and more. While there are many potential benefits
of Performance Appraisal, there are also some potential drawbacks. For example,
Performance Appraisal can help facilitate management-employee communication; however,
Performance Appraisal may result in legal issues if not executed appropriately, as many
employees tend to be unsatisfied with the Performance Appraisal process. Performance
Appraisals created in and determined as useful in the United States are not necessarily able to
be transferable cross-culturally.
Team would disagree with. Yet, the reality for many organizations is that their people remain
undervalued, under trained and underutilized. The market place for talented, skilled people is
competitive and expensive. Taking on new staff can be disruptive to existing employees.
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Also, it takes time to develop cultural awareness, product / process / organization

knowledge and experience for new staff members.

NEED FOR THE STUDY

Performance Appraisal system used
1. To provide systematic judgments to back up salary increases, transfer,
emotion or termination.
2. To help each employees to understand his own strength and weakness.
3. They are means of telling a subordinate how he is doing skill or job knowledge.
4. Development interpersonal relationship.
5. They used as a base for coaching and counseling the individual by the superior..

OBJECTIVES OF THE STUDY

1. To understand the Significance of Performance Appraisal in Organizations.
2. To present a brief profile of Fortune Inn Sree Kanya.
3. To examine the opinion of employees in Fortune Inn Sree Kanya towards the
Performance Appraisal System in their organization.
4. To give suggestions if any.

METHODOLOGY OF THE STUDY

There are two types of data to collect information relating to the concerned topic. They are

1. Primary data
2. Secondary data

Primary data:
Primary data are those which are collected for the first time and fresh data is collected. In this
project the data is collected through questionnaire method.
Questionnaire: The questionnaire consists of fourteen open ended questions measured on a
five point scale. Employees from all the departments and all levels were taken for the study.
Out of the 140 employees, the sample size is 50.

Secondary data:
Secondary data is such data, which is already published, collected for some purpose other
than the one confronting the researchers at a given point of time. For this project the data was
collected from
a. Annual calendars
b. Past documents related to training and development of HR department.