MINI PROJECT REPORT ON

A STUDY ON PERFORMANCE APPRAISAL AT KIRLOSKAR

ELECTRIC CO. LTD.
By,
BANUPRIYA UTTAM.P
USN NO: 4GW14MBA08

Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM

In partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the Guidance of
GUIDE
Mrs. Chaitra. M.P.
Assistant Professor
GSSS Centre for PG Studies & Research
Mysore

GSSS CENTRE FOR PG STUDIES & RESEARCH

Department of Management
KRS ROAD, MYSURU 570016
2014-2016

1.ABSTRACT
The purpose of this study was to understand the effectiveness of performance appraisal system at
Kirloskar Electric Co. Ltd. Belvadi Mysore. It focuses on the relative importance of performance
appraisal of employees. Secondary sources of information have been considered as a data collection
process.The collected data is represented in the form of tables and graph.
The main focus of the study was on the effectiveness with working environment, feedback given,
performance system, pay package, professional effectiveness. Results of the study reveal that a good
performance appraisal system work environment and good work conditions can increase employee job
performance and the employees will try to give their best which can increase the employees work
performance.
2.INTRODUCTION
Performance appraisal may be defined as structured formal interaction between subordinate and superior,
that usually takes the form of a periodic interview in which the work performance of the subordinate is
examined and discussed, to identify the strength and weakness as well as skill development opportunities
for improvement in many organization.
The organization may use direct or indirect appraisal method for appraising the employees, which helps to
determine reward outcomes. It is used to identify the better performing employees who should get the
majority of available merits like giving bonuses and promotion in the organization and hike in salary. At
the same time appraisal are used to identify the poorer performers who may require some form of
counseling or in extreme cases, the organization may also take serious action like decrease in pay,
demotion or dismissal.
Performance appraisal system is essential to improved and proper career development measures were to
be introduced, identified a number of principles should be followed when determining appraisal system.

Need of the study

It is necessary for a business organization to carry out the activity of performance appraisal periodically as
it entails twofold beneficial effect. Performance appraisal helps to identify the corporate competencies and
skills gap. It provides the information about the performance through ranking system. It helps in
analyzing the current performance appraisal in the organisation. This study provides the information about
the employee performance. To the employees, making them realize their individual potential, performance
appraisal acts as a source to motivate them to do their jobs in the best way.

Scope of the study

The study covers wheather the performance appraisal conducted by the company is useful for the
employees overall development i.e., individual development and organisational development. The study
helps the employees and management for further changes in the programme for their improvement.

3.LITERATURE REVIEW
The topic Performance appraisal is so vast. The topic is not new; it is as old as the formation of the
organization. In early 1980s, majority of theoretical studies emphasized on improving the rating system
within the organization it helps to reduce the confusion of employees performance. As the time passage of
time the method got enhanced and received an immense appreciation and attention of managers.
There were many innovations in appraisal method which condensed the errors and improved the
observation skills from the performance appraisal practice. In the period of 1950 to 1980,there were
hundreds of thousands of researches had been taken which focused on different methods of rating scale.
In the year 1980 there were biasness according to gender, race, and favoritism rather examined the
knowledge, skills and style of the employee. It has been observed that the bias free appraisals were
inevitably true or more precisely we can say more accurate, but the concept was totally refused by the
research of Hulin in 1982. According to them the biasfree appraisals were not necessarily accurate
(Murphy & Balzer, 1989).
According to a number of researchers, the enhanced and upgraded performance appraisal procedure and
method will enhance the satisfaction level of employees and definitely will improve the process of goal
setting within the organization.

4.RESEARCH METHODOLOGY
The research design is used for the study was descriptive in nature. It aims to determine the atrategy and
the way to perform appraisal.
4.1.OBJECTIVE OF THE STUDY
To study the performance appraisal system at Kirloskar.
To identify the process of performance appraisal at Kirloskar.
To evaluate the effectiveness of performance appraisal system at Kirloskar.
4.2.RESEARCH DESIGN
Sampling technique: Convenience sampling method was adopted.
Sampling size: 40 employees was chosen from the total workforce.
Sampling unit: Employees and staff of Kirloskar at manufacturing department 40 in numbers.
4.3.DATA COLLECTION METHOD
The data is collected with the help of both primary and secondary data. To fulfill the objective of the
study.

Secondary data:
It has been collected from the books, magazines, website etc.
Past project data of the company, journals and articles.
4.4.LIMITATION

Survey was limited to only 40 employees.

The study was undertaken within the organization.
The scope of the study is only concentrated on appraisal method.
The finding of the study is applicable to Mysore only.

5.INTERPRETATION
Majority (72.5%) of the respondents agree that performance appraisal can evaluate the employee
properly.
Majority (47.5%) of the respondents agree that performance is effectively monitored.
Majority (62.5%) of the respondents agree that performance appraisal should be conducted
once in a year.
Majority (52.5%) of the respondents agree that they are satisfied with the current
performance appraisal system in their organization.
Majority (65%) of the respondents agree that evaluation results are impacted on the behavior,
attitude and morale of the staffs.
Majority (60%) of the respondents agree that evaluation results are impacted on the behavior,
attitude and morale of the staffs.
Majority (72.5%) of the respondents agree that performance appraisal is used as a decision
making tool for the increasing the performance and set promotion standards.
Majority (55%) of the respondents agree that when employees seek for the tools and processes
may be beneficial for the organization and so the performance and the interest on the work
increases and may be rewarded.
Majority (62.5%) of the respondents agree that strongly in order to have high performance, it is very
important to motivate employees involve at workplaces.
Majority (55%) of the respondents agree when your performance has not met minimum standards,
your manager discusses with you the reasons.
Majority (70%) of the respondents agrees giving more responsibility and increasing the
authorization for employees is effective to increase their performance.
Majority (65%) of the respondents agree that performance of the employee may be increased by
promoting them.
Majority (72.5%) of the respondents agree that increase of performance may be seen if managers
observe the talents of the employees and direct them to improve their talents.
Majority (65%) of the respondents agree that appreciation and being praised by their managers for
successful employees increase their success at work.
Majority (62.5%) of the respondents agree by rewarding mechanism by affecting the performance.
Majority (70%) of the respondents agree that staffs are involved in decisions which affects the
performance at work.

 Majority (72.5%) of the respondents agree that there is a fair consistent basis for
measuring for performance and individual contribution to business objectives.
Majority (47.5%) of the respondents agree that staffs wish to improve the score card.
Majority (72.5%) of the respondents agree that the benefits such as rent, clothing and fuel for
heating increase the loyalty to the organization and success at work.
6.CONCLUSION
Performance appraisal is a systematic approach to apprise the employees performance to identify training
needs to increase employee skills at work. At Kirloskar employees are happy with the existing system of
performance appraisal.
The study suggests that 360 degree appraisal system can be implemented for more better analysis of
employees. Overall study suggests employees are currently satisfied with the performance system.
Proper measures can be taken to improve this system in the future.
7.REFERENCE
Company website: www.kirloskarelectric.com
Books
Human resource management- Dr.C.B.Gupta.
Human resource management V.S.P.Rao.
Stone , R, (2005), Human Resource Management, 5th edition, John Wiley and Sons, QLD
Australia.p 412-414.
Elwood F. Holton II, James W. Trott, Jr. (1996). "Trends Toward a Closer Integration of
Vocational Education and Human Resources Development", Journal of Vocational and Technical
Education, Vol. 12, No. 2, p7.
Dr.Lalitha Mishra, (2013). A Research Study on Employee Appraisal System Case of Hong Kong
and Shanghai Banking Corporation (Hsbc Bank), International Journal of Business and
Management Invention ISSN (Online): 2319 8028,Vol 2, No.2,p 60.
References
Palmer, J.K. and Feldman, Jack M, Accountability and Need for Cognition Effects on
Contrast, Halo, and Accuracy in Performance Ratings, Journal of Psychology, 139 (2), 2005,
119-137.
F. J. Landy, And Farr, J. L. Performance Rating, Psychological Bulletin, 87, 1980, 72-107.
Murphy K.R. and Cleveland, J.N. Performance Appraisal: An Organizational Perspective,
Boston: Allyn and Bacon, 1991.
Roberts G.E., The Influence of Participation, Goal Setting, Feedback and Acceptance on
Measures of Performance Appraisal Effectiveness,, Dissertation Abstracts In-ternational
(Doctoral dissertation, University of Pittsburgh, 1990.