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PREFACE

The Internship Project is an important part in the Degree of Master of


Personnel Management, according to the University Of Pune. During the
course of internship, the researcher is expected to use and apply his
academic knowledge and gain a valuable insight to know the employees
and organization behavior.
During the course of my training, I did a comprehensive study of
Performance Appraisal System and its management towards the
effectiveness of the organization. I have undertaken the Internship project
at BIG BAZAAR PVT. LTD. PUNE. My Project is on the topic titled
PERFORMANCE APPRAISAL
I have learnt about the Worker / Employees satisfaction and awareness.
In this report, I have put in my efforts to compile the data with utmost
accuracy and give the views to the best of my judgment.

Arland Jennifer

ACKNOWLEDGEMENT

I would like to express my deep and sincere gratitude to Poona Institute


of Management Sciences and Entrepreneurship (PIMSE) for providing
me with the opportunity to do my project on the topic Performance
Appraisal. The project was a great source of learning and a good
experience as it made me aware of the professional culture and
conduct that exists in an organization.
I would like to thank the Director Dr. G.M. Nazeruddin , and all the
teachers especially my project guide Prof. Sachin Kulkarni and Course
coordinator Prof. Misba Kadri for the encouragement, inspiration, and
help.
Though at the onset of ambitious project, one always encounters certain
difficulties in the beginning, however, overcoming these difficulties of
the project as well as making it a success, greatly depended on the cooperation of Mr. Shiv Kundra (HR of Big Bazaar, Pune) and Mr Rahul
Kulkarni, Store Manager, Big Bazaar, Puneto whom I am very grateful.
Lastly, I would like to thank my family for their invaluable guidance,
immense support and help for the completion of the project.

INDEX
Sr. No.

Topic

1.

Preface

2.

Acknowledgement

Chapter Introduction
I
1.2
1.3-1.5

Aim and Objective Of Research


Scope, Hypothesis, Limitations

Chapter Review of Literature


II
2.2

Objectives

2.3

Purpose of Performance Appraisal and


Uses

2.5

Importance

2.6

The Evaluation Process

2.7

Methods

Chapter Profile of the Company


III
Chapter Research Methodology and Types
IV
Chapter Data Analysis and Interpretation
V
Chapter Findings and Inferences
VI
6.3
6.4

Recommendations
Conclusion

Page
No.

6.5

Bibliography

6.6

Annexure

CHAPTER NO 1

1.1 INTRODUCTION
Performance Appraisal is the systematic evaluation of the individual
with regard to his or her performance on the job of his potential for
development The main objective is to focus the functioning of
performance Appraisal system.
In Performance Appraisal more stress is given to measure the results of
the employee. Performance Appraisal system bridges the gap between
objectives of the organization & those of individual department
managers. It helps people in the organization to consciously aim at &
improve upon individual performance & organizational effectiveness.
Performance Appraisal is also described as merit rating in which one
individual is ranked as better or worse in comparison to others. The basic
purpose in this merit rating is to ascertain eligibility for promotion.
However, Performance Appraisal is more comprehensive term for such
activities because its use extends beyond ascertaining eligibility for
promotion such activities may be training & development, salary increase
transfer, discharge etc.

1.2 AIM AND OBJECTIVES OF RESEARCH


Aim of the project was to see the basic difference what we study through
books in the classroom and what is being followed in corporate world.

Basic aim was to verse myself with the difference between the theory and
the practicality of the performance appraisal system in Big Bazaar Pvt
Ltd.
The Objectives of this research are as follows:

To study the Effectiveness of Performance Appraisal System & its


Impact on the Organization in Big Bazaar.

To study the purpose of performance appraisal in the company.

To discover if the present appraisal system is being followed is in


tune with modern management theory.

To determine the performance criteria and the effectiveness of the


weightage given to each dimension of the performance appraisal.

To discover if the appraisal system being followed is objective and


transparent and is perceived as such by the employees of the
company.

1.3 SCOPE OF THE PROJECT

The scope includes the study of the appraisal for all the employees
of Big Bazaar.

To study in depth about the appraisal system.

Interact with the environment to gauge acceptability of the system.

Assess the levels of satisfaction with the system.

Response of the environment towards the method of appraisal and


its positive manifestation.

1.4 HYPOTHESIS
Performance appraisal is an effective tool to increase the productivity and
employees satisfaction at large in Big Bazaar.

1.5 LIMITATIONS

Restricted sample size.

Study confined to a single branch of Big Bazaar.

Limited time was available for the completion of study and


so data could not be collected from all the employees.

At certain times there could be biased answering while


filling up the questionnaire.

CHAPTER NO 2

2.1

REVIEW OF LITERATURE

Performance appraisal has traditionally been used a mechanism of


controlling

employees

through

salary

administration,

reward

administration, promotions and disciplinary action. Many organization


use performance appraisal, confidentially by one or more senior officers
for his performance on some dimensions and the confidential ratings are
handled by the Human resources department. In most cases the
employees does not know how his performance has been rated by his
superiors. Companies have level, while some organizations do not do
this. Such practice has been found to result in the following:

Employees never get to know their strength and weakness in


relation to their capabilities as officers, managers or supervisors
throughout their life in an organization.

They are often taken by surprise because some junior to them


supersedes them in promotion and thus often tend to attribute this to
favoritism, poor personnel policies, good superior officers of the
promoted employees and keep wondering what they lack. Their
morale is down, they lose motivation, develop defensive behavior
and it is difficult to get them back to the original level of drive and
enthusiasm.

In the organization where only poor performance below a level is


feedback, the employees only get to know their weakness and not

their strengths. Feedback has a tremendous motivational value (both


positive and negative). Researches by psychologists have established
that behavior changes occurs more by positive reinforcement, i.e.
regarding strengths (than by negative reinforcement or harping on
the weak points) and helping the employee is analyzing his
strengths, weaknesses, successes and failures. Even when such
negative feedback is given to the employees in these organizations,
they often perceive the feedback as condemning them as they are
only told that their performance is poor. The entire responsibility for
such poor performance is placed on them and very little is done to
help them understand why their performance is considered poor and
what opportunities are available to them for overcoming their
weakness. Thus employees often get lost and demoralized with such
negative feedback. Better performing employees also feel frustrated
because their performance is not recognized. Many do not even how
well they are doing.

Very often, promotions are demanded by better performing


employees are given to some of the confidentially rated better
performers with little consideration for their potential to perform
new roles in the new job. Good performance appraisal is used as the
main input for promotion, often causing adjustment problems. To
satisfy better to new responsibilities. This also results in frustration
due to promotion.

Due to such mechanization and impersonal systems the role of the


HR department becomes narrow. It is seen as ineffective, and doing
only post-office functions. It enjoys little respect and credibility with
the managers.

As a result of a one-sided and narrow appraisal, managerial


resources in organization do not grow, and start stagnation instead of
multiplying. HR should grow and multiply as people have
tremendous capabilities for development, acquiring new skills to
perform new roles. Such a development and multiplication of HR in
not only good for the organization and the employees, but also for
the society as a whole. This is a process of continuing education.

Performance appraisal can be effective instrument for helping people


grow and develop in organizational settings. It could be used as a
mechanism of continuing education and learning from one another,
through a well-organized appraisal system an employee can create
learning spaces for himself in an organization. Recent researches and
experiences have shown that development-oriented performance appraisal
and review system, when effectively practiced, substantially contributes
to the organizational health and facilitates multiplication of managerial
resources.
Performance appraisal is the step where the management finds out how
effective it has been at hiring and placing employees. A performance
appraisal is a process of evaluating and employees in terms of the
requirements of the job for which he is employed, for purpose of
administration including placement, selection for promotion and for
providing financial rewards. It is a process of estimating or judging the
vale, excellence, qualities or status of some object, person or thing.
It has been used for the first time during the First World War, when
Walter Dill Scott, the US army adopted the Man-to-man rating system
for evaluating military personal. During the 1920-30 period, relational

wages structure for hourly paid workers were adopted in industrial units.
Under this system, the policy of giving grade wage increments on the
basis of merit was accepted. These early employee plans were called
merit rating programme. Most of these plans were of the rating-scale
type, where emphasis was given to factors, degree and points. The older
phrase merit rating is largely restricted to the rating of hourly paid
employees. It is used frequently in developing criteria for salary
adjustments, promotions, transfers, etc. Personnel appraisal places
emphasis on the development of the individual and is used to evaluate
technical, professional and managerial personnel.
Performance appraisal has been considered as a most significant and
indispensable tool for an organization. It provides a basis for judging the
effectiveness of personnel sub-divisions such as recruiting, selection,
training and compensation. Mc Gregor says Formal performance
appraisal plans are designed to meet three needs, one of the organization
and the other two of the individual, namely;
1.

They provide systematic judgments to back up salary increases,


transfer, demotions or terminations.

2.

They are means of telling a subordinate how he is doing, and


suggesting needed changes in his behaviour, attitudes, skills or job
knowledge. They let him know where he stands with the boss.

3.

They are used as a base for coaching and counseling the individual
by their superior

2.2 OBJECTIVES OF PERFORMANCE APPRAISAL

According to Cummings and Schwab, the objectives of the performance


appraisal can be categorized as either evaluate or developmental. The
evaluation purpose have a historical dimension and are concerned
primarily with looking back at how employees have actually performed
over given period, compared with required standards of performance. The
developmental, a future-oriented performance appraisal is concerned with
the identification of employees training and development needs and the
setting of the new targets.
The broad objectives of performance appraisal are:
1.

To enable an organization to maintain an inventory of the number


and quality of all managers and to identify and meet their training
needs and aspiration.

2.

To determine increment and provides reliable index for promotions


and transfers to positions of greater responsibility.

3.

To maintain individual and group development by informing the


employee of his performance standard.

4.

To suggest ways of improving the employees performance when he


is not found to be up to the mark.

5.

To help the employee to overcome his weakness and improve his


strengths so as to enable him to achieve the desired performance.

6.

To generate adequate feedback and guidance from the immediate


superior to an employee working under him.

7.

To contribute to the growth and development of a through helping


him in realistic goal setting.

8.

To help in creating a desirable culture and tradition in the


organization.

9.

To provide inputs to system of rewards and salary administration.

10. To help the organization to identify employees for the purpose of


motivating, training and developing them.
11. To generate significant, relevant, free and valid information about
employees
Thus, the performance appraisal of an organization provided systematic
judgments to backup, attitudes, skills or job knowledge and uses it as a
base for coaching and counseling the individual by his superior.
Apprising employee performance is useful for compensation, placement
and training and development purposes.

2.3

PURPOSE OF PERFORMANCE APPRAISAL

Appraisal of employees serves useful purposes.


1.

It can serve as a basis for job change or promotion.

2.

It serves as a guide for formulating a suitable training and


development programme to improve his quality of performance in
his present work.

3.

It serves as a feedback to the employees.

4.

It serves as an important incentive to all the employees.

5.

The existence of a regular appraisal system tends to make the


supervisors and executives more observance of their subordinates.

6.

It provides the rational foundation for the payment of piece work,


wages, bonuses etc.

7.

It serves as a means for evaluating the effectiveness of device for


the selection and classification of workers.

2.4
1.

USES OF PERFORMANCE APPRAISAL


Performance Appraisal reflects evaluative judgments of the traits,
characteristics & work performance of employee, placement,
transfer, promotion & reward.

2.

Performance plans serve as a basis for counseling employee about


their strengths & weaknesses or for improving productive
efficiency & for bettering employee relations through developing
mutual confidence.

3.

The results of Performance Appraisal are useful in personnel


research.

4.

Performance Appraisal can help organization to improve


productivity, to promote internal control through appropriate
feedback & corrective action.

5.

To diagnose organizational & individual problems.

6.

To foster positive work culture.

7.

To encourage, recognize & reward achievement.

8.

To seek an all round HR development.

9.

An effective Performance Appraisal system has the potential to


minimize many existing problems & thus to reduce non-productive
costs.

10. This helps in overall improvement in the quality of work life


(QWL).

2.5

IMPORTANCE OF PERFORMANCE APPRAISAL

1.

Proper

enforcement

of

personnel

decisions:

Systematic

performance appraisal provides information of great assistance in


making and enforcing decisions on promotions, pay increases, lay
offs and transfers. A research study has disclosed that performance
appraisal is send for promotion in 73% cases, salary adjustments
69%, deciding upon discharges 46% determining lay off 27%.
2.

Works as a control device: Performance appraisal puts a


psychological pressure people to improve performance on the job. If
the people are conscious that they are being appraised in respect of
certain factors and their future largely depends on such appraisal,
they tend to present positive and acceptable behaviour. Thus the
appraisal automatically works as control device.

3.

Guide to employee development: A systematic performance


appraisal serves to guide employee development. More people like
to know how they are doing. Appraisal programmed provides this
information

which

can

be

communicated

to

employees.

Shortcomings of the employees shown through the appraisal process


can be removed through organizing training and development
programmers.
4.

Fair Relationship in groups: Appraisal also serves to maintain


fair relationships in groups. Thus it is necessary for tactical and
strategic planning, motivation, communication and equity.

2.6

THE EVALUATION PROCESS

We observe that the process of performance appraisal follows a set


pattern.

1.

Establish performance standards: At the time of designing a job


description, performance standards are usually developed for the
position. These standards should be clear and not vague and
objective enough to be understood and measured. These standards
should be discussed with the supervisors to find out which different
factors are to be incorporated. Weights and points to be given to each
factors and then should be indicate on appraisal form.

2.

Communicate performance expectations to employees: The


next step is to communicate these standards to the employees. To
make communication effective, feedback is necessary from the
subordinate to the manager.

3.

Measure actual performance: The third step is the measurement


of performance. To determine what actual performance is it is
necessary to acquire information about it. Four sources of
information are frequently used to measure actual performance i.e.
personal observation, statistical reports, oral reports and written
reports.

4.

Compare actual performance with standards: The fourth step is


the comparison of actual performance with standards. The employee
is apprised and judged of his potential for growth and advancement.
Attempts are made to note deviations between standard performance
and actual performance.

5.

Discuss the appraisal with the employee: The results of appraisal


are periodically discussed with the employees, where good points
and difficulties are indicated and discussed so that performance is
improved. The information that the subordinate receive about his
assessment has a great impact on his self-esteem and on his
subsequent performance.

6.

Initiate correction action: The final step is the corrective action.


Immediate corrective action can be of two types. One is immediate
and deals predominantly with symptoms. The other sis basic and
delves into causes. Immediate corrective action is often described as
putting out fires. Basic corrective action gets to the sources of
deviation and seeks to adjust the difference permanently. Coaching
and counseling may be deputed for formal training courses and
decision-making responsibilities and authority may be delegated to
the subordinates.

2.7

METHODS OF PERFORMANCE APPRAISAL

There are various methods of Performance Appraisal. The classification


of methods of performance appraisal is in following two categories.
A. Traditional Methods
B. Modern Methods

A.

Traditional Methods
1. Ranking Method
Ranking is the oldest & simplest method of appraisal in which a
person is ranked against others on the basis of certain traits and
characteristics.
This is very simple method when the no. of person to be ranked is
small. Since, differences in ranks do not indicate absolute of equal
differences of ability between individuals, the method has limited
value for performance appraisal.
2. Paired Comparison

This method is used for large groups. In this method, each person is
compared with other person taking one at a time usually one trait.
The rater puts a tick mark against the person whom he consider the
better of the two & final ranking is determined by the no of times that
person is judged better than others.
3. Grading
In this method certain categories of abilities of performance are
defined well in advance & persons are put in particular category
depending on their traits & characteristics such categories may be
definitional like outstanding good, average, poor very poor or may be
in terms of letters like A,B,C,D. etc. The actual performance of the
employee is measured against these grades. This method is generally
useful for promotion based on performance.
4. Forced Distribution Method
In order to check the tendency of rating most of the appraisees around
high point in a rating scale, forced distribution method has been
adopted.
In this method, the appraiser is forced to appraise the appraisees
according to pattern of a normal curve. The basic assumption in this
method is that employees performance level conforms to a normal
statistical distribution.
The basic advantage of this method is that it over comes the problem
of adopting a central tendency of rating most of employees to a point,
particularly high or near high to appraise them.
5. Forced choice method

The forced choice method contains a series of group of statements &


the rater checks how effectively the statement describes

each

individual being evaluated the most common method of forced choice


contain two statements both of which may be positive or negative.
Though both of them describe the characteristics of an employee, the
rater is forced to tick only one which appears to be more descriptive of
the employee out of these two statements, only one statement is
considered for final analysis of rating.
6. Check list method
In the check list method of appraisal the rater provides appraisal report
by answering to appraisee. These questions are prepared by HR
department & are related to the behaviors of the appraisee concerned.
Each question has two alternatives, yes or no when the check list is
completed, it is sent to HR department for further processing various
questions in the checklist may have either equal weightage or more
weightage may be given to those questions which are more important.
The HR department then calculates the total scores, which show the
appraisal result of an employee.
7. Critical Incidents Method
In this method, only critical incidents & behavior associates with these
incidents are taken for evaluation.
The basic idea behind this rating is to appraise the people who can do
well in critical situations because in normal situation most employees
work alike.
This method is useful for discovering potential of employees who can
be useful in critical situation.

8. Graphic Scale Method


It is also known as linear rating scale. In this method, a printed
appraisal form is used for each appraise. The form contains various
employee characteristics & his job performance various characteristics
include

initiative,

leadership,

dependability,

cooperativeness,

enthusiasm, creative ability, analytical ability decisiveness, emotional


maturity etc depending on the level of the employee.
The rating is on the basis of scale which is in continuum. The central
idea behind this scaling is to provide the rater with a continuum
representing varying degrees of a particular quality. The rate estimates
the degree of which each quality is possessed by his subordinates. The
degree of quality is measured on a scale which can vary from three
points to several points.
9. Essay Method
Instead of using structured forms for Performance Appraisal, some
companies use free essay method. In this method, the rater assesses
the employees on certain parameters in his own words.
The essay method is useful in providing useful information about an
employee on the basis of which he can be appraised. However, there
may be problems in free essay method. Each rater may use own style
& perception in describing person which produces difficulty in
analysis.
10. Field Review Method
In this method, an employee is not appraised by his direct superior but
by another person usually from HR department. The rater, in this case,
appraises the employee based on his records of output & other
quantitative information such as absenteeism; late coming etc. the

rater also conducts interviews of the employee & his superior to


ascertain qualitative aspects of job performance. This method is more
suitable for promotion purpose.

B.

Modern Methods
1. Appraisal by results or objectives
It is the system of evaluation of managerial performance against the
setting & accomplishing of verifiable objectives. The basic idea
behind this appraisal is that the organization is concerned with
achievement of objectives through the contributions of individual
managers rather than or the basis or their traits.
This method uses the contributions of a manager as the basis for
performance appraisal. Where contributions can be measured
quantitively, not much problems are involved because targets against
which performance is to be evaluated can be fixed in terms of quantity
like production figures, cost & sales figures etc.
2. Behaviorally Anchored Rating Scales (BARS)
BARS approach gets away from measuring subjective personal traits
& instead measures observable, critical behaviors that are related to
specific jot dimensions.
a) The first step in developing BARS is the identification of
performance measures i.e. outcomes of an effective job
performance.
b) Critical behaviors are those which are essential for the performance
of the job effectively. These behaviors are generated from different
dimensions of the job and are related to various critical incidents of
the job.

c) Various critical behaviors as identified in step 2 are retranslated


usually by a different group of personnel. Various critical incidents
are classified into clusters with each cluster having similar critical
incidents. Those behaviors which are approved by majority of
personnel are kept for further development and other discarded.
d) Those critical behaviors which are included for the Performance
Appraisal during the process of retranslation are given scales
usually in numbers with their description.
e) The result of arranging various scales for different dimensions of
the job produces a vertical scale for each dimension. This scale is
used for performance appraisal.

3. Assessment Centres
An assessment centre is a central location where managers comes
together and participated exercises on the basis of which they are
evaluated by a panel of raters. The basic objective of assessment
Centres approach of appraisal are to assess objectively various
relevant skills of an assessee such as skills related to interpersonal
interaction, creativity, organizing and planning, quality of thinking,
resistance to stress, motivation to work, dependence on others etc.
The process of assessment centre appraisal begins with the
establishment of the objectives of the programme followed by
designing physical facilities of the centre where the programme is to
be conducted.
Providing training to the assessors to conduct the programme and
conducting evaluation exercises to assess the participants. Feedback is
provided to the participants indicating their strengths and weaknesses.

The programme also indicates the actions to be taken to overcome the


weaknesses.

4. 360 Degree Appraisal


360 Degree Appraisal is the process of systematically gathering data
on a persons skills, abilities and behaviours from a variety of sources,
the manager, peers, subordinates and even customers and clients with
whom he interacts in the course of his job performance.
In this method, besides appraising the performance of the assessee, his
other attributes such as his talents, behaviour, values and other
technical considerations are also appraised.

2.8 EMPLOYEES STRATEGIES TO IMPROVE


PERFORMANCE
Positive Reinforcement System: - It includes
1. Positive discipline programmes.
2. Employee assistance programmes.
3. Employee counseling.
The positive reinforcement system lets employees know how well
they are meeting specific goals and rewards improvement with praise
and recognition. Some organizations improve performance through the
use of positive discipline or non-punitive discipline.
Employee assistance programmes are designed specifically to assist
employees with chronic personal problem that hinder their job

performance and attendance. Such programmers are often used with


employees who are alcoholics or who have severe domestic problems.
Counseling is an inescapable and necessary part of appraisal. It has to
do with a personal relationship and interaction between two people.
The main steps in appraising and counseling subordinates are as
follows:
a. Schedule periodic appraisals for all immediate subordinates.
b. Establish

performance

appraisal

standards

jointly

with

subordinates.
c. Prepare for each individual and counseling session. Select an
appropriate place, provide enough time and review records.
d. Make appraisal sessions co-operative. The subordinate must be
encouraged to appraise his own performance and share his ideas
and feelings with the appraiser.
e. Establish and maintain rapport with the subordinate by words,
actions and attitude.
f. Jointly explore alternative solution and the consequences of
selecting each one.
g. Help the subordinate to come to a self-determined solution to the
problem or deficiency.
h. Terminate the session gracefully.
i. Complete records of the session and decisions for future reference.
j. Carry out the decisions and actions.
k. Follow up and evaluate results.

Thus counseling skills include listening, understanding, and initiating


effective communication and evaluation solutions. Voltas have

evolved a development-oriented appraisal system on the basis of their


own experiments and experiences over the years. Larsen & Turbo
limited is the first company in India to introduce a developmentoriented performance appraisal system almost a decade ago as a part
of an integrated human resource Development System. The State Bank
of India also introduced such a system in some of its branches
covering a large number of officials.

CHAPTER NO 3

PROFILE OF THE COMPANY


Future Group is Indias leading business group that caters to the entire
Indian consumption space. Led by Mr. Kishore Biyani, the Future
Group operates through six verticals: Retail, Capital, Brands, Space,
Media and Logistics. Apart from Pantaloon Retail, the groups
presence in the retail space is complemented by Group companies,
Indus League Clothing, which owns leading apparel brands like
Indigo Nation, Scullers and Urban Yoga, and Galaxy entertainment
Limited that operates Bowling Co, Sports Bar, F123 and Brew Bar.
Future Capital Holdings, the groups financial arm, focus on asset
management and consumer credit. It manages assets worth over $1
billion that are being invested in developing retail, real estate and
consumer related brands and hotels. The Group has launched the
consumer credit and financial supermarket format, future money and
Future groups vision is to, deliver everything, everywhere, every
time to every Indian consumer in the most profitable manner.

BIG BAZAAR
Isse sasta aur accha kahi nahin
Big Bazaar is not just another hypermarket. It caters to every need of
your family. Where Big Bazaar scores over other stores is its value for
money proposition for the Indian customers.

At Big Bazaar, you will definitely get the best products at the best
prices - thats what Big Bazaar guarantee. With the ever increasing
array of private labels, it has opened the doors into the world of
fashion and general merchandise including home furnishings,
utensils, crockery, sports goods and much more at prices that will
surprise you.

ELECTRONICS BAZAAR
Currently present within Big Bazaar stores, Electronics Bazaar offers
the best deals in branded electronic goods and appliances.

FURNITURE BAZAAR
Furniture Bazaar offers an entire range of Home Furniture needs that
are utilitarian and affordable in their pricing

GOT IT
Got It is a one stop shop for everything from screwdrivers to drill
machines and everything else that you would need to keep your home
up and going.

FOOD BAZAAR
Ab Ghar Chalaana Kitna Aasaan
Food Bazaar invites you for a shopping experience, unique by its
ambience. At Food Bazaar you will find a till now unseen blend of a
typical Indian Bazaar and International supermarket atmosphere.
Flagged off in April02, Food Bazaar is a chain of large supermarkets
with a difference, where the best of Western and Indian values have

been put together to ensure your satisfaction and comfort while


shopping.
The western values of convenience, cleanliness and hygiene are
offered through pre packed commodities and the Indian values of
"See-Touch-Feel" are offered through the bazaar-like atmosphere
created by displaying staples out in the open, all at very economical
and affordable prices without any compromise on quality. The best of
everything offered with a seal of freshness and purity will definitely
make your final buying decision a lot easier.

Group Vision
Future Group shall deliver Everything, Everywhere, Everytime for
Every Indian Consumer in the most profitable manner.

Group Mission
We share the vision and belief that our customers and stakeholders
shall be served only by creating and executing future scenarios in the
consumption space leading to economic development.
We will be the trendsetters in evolving delivery formats, creating retail
realty, making consumption affordable for all customer segments for
classes and for masses.
We shall infuse Indian brands with confidence and renewed ambition.
We shall be efficient, cost- conscious and committed to quality in
whatever we do.
We shall ensure that our positive attitude, sincerity, humility and
united determination shall be the driving force to make us successful.

Core Values
Indian-ness: Confidence in ourselves.
Leadership: To be a leader, both in thought and business.
Respect & Humility: To respect every individual and be humble in our
conduct.
Introspection: Leading to purposeful thinking.
Openness: To be open and receptive to new ideas, knowledge and
information.
Valuing and Nurturing Relationships: To build long term relationships.
Simplicity & Positivity: Simplicity and positivity in our thought,
business and action.
Adaptability: To be flexible and adaptable, to meet challenges.
Flow: To respect and understand the universal laws of nature.

3.1

Performance Appraisal System in Big Bazaar

Annual

Performance

&

Development

Review,

Appraisers Workshop
1. Performance Management System: Contents
Relevance of PMS to a high growth organization like ours
Our Performance Management System (PMS)
Concepts & Design
Employees Eligibility and Evaluation Criteria
Different Forms
Assessment Components KRAs, Competencies
Tracking Values

Store

Staff

Effective Performance Counseling & Feedback


Role of the Appraiser
Development Planning.
2.

Performance Management Systems: Purpose

To Enable promoting a performance oriented culture in the organization


through:

Continuous Planning and tracking of performance in line


with the Organizational Goals

Development initiatives to deal with the Employee


Performance Gap areas.

Rewarding/ Recognizing Performance.

3. Why Performance Management Systems A Key Management


Tool
Organization
Builds a Performance Culture in the Organization

Provides an Objective and unbiased framework for assessing


performance

Communicates organization & department goals


Builds stronger working relationships
Improves productivity thereby enhancing customer satisfaction
Supports people related decisions:development, career advancement &
growth and financial / non financial incentives, etc.

Sets a Rewarding culture for high performance.

Manager

Owns up performance of the team

Tracks performance of people in his team and enables them to


continuously reduce gaps in performance

Bring in a sense of objectivity and fairness to the Performance


assessment process

Improves rapport and builds morale in the team

Enables Improvement in the employees performance / productivity

Employee

Gets assured that the Performance assessment process is objective


and fair

Gets rewarded and recognized for accomplishments

Plans and sets goals to achieve Organizational Objectives thru a


sense of ownership of his deliverables

Opportunity to share career goals and seek inputs/guidance on


career development

Gets aware of developmental areas for current and future likely


roles.

3.2

Performance Management System

1. Key Features of Performance Management Systems


Separate Cycles for Store Staff and Support Staff at Zonal /HO

Store Staff : 1 Apr to 31 Mar

ZO/HO Staff: 1 Jul to 30 Jun

Eligibility of Employees :

Confirmed with at least 6 months service as on date of


Appraisal

Separate Appraisal Forms :


o

Frontliners ( Band 1); Band 2&3; Band 4; Band 5

Self Appraisal for Band 2 & above

Assessments on :
o

KRAs; Competencies; Overall Rating; Summary Feedback


on Performance, Potential, Development Areas

Tracking Values
o

Value Orientation of employees

2.

Who gets appraised?

Only those employees who are on the permanent rolls of the


Company will be a part of the review.

All employees who have joined on or before 30 th Sep of every year


are eligible to be a part of the review

All employees whose probation has been extended will not be


considered to be a part of the review

All employees who are under contract / part time / flexi manning
plans will not be a part of the review

The appraisal process is applicable to the Store employees upto


the level of Store Manager. This will also include support functions at
stores viz. Marketing, HR, Finance, In Store Logistics, etc

3.

Performance Review Period

At the time of Discussion, the performance review is to be


restricted from April to March i.e. 1st April 2010 to 31st March 2011 )

Achievements upto 31st March 2011.

4. Employees should know your Appraiser


Function

Position/ Level

Appraiser

Reviewer

TTM / TM / TL

ADM / DM

ASM / SM

ADM / DM

ASM / SM

ASM

SM

(Appraisee)

Operations
(Stores)

SM/Area
Manager
Area Manager /
Business
Manager

SM (incl. All
Store Incharges)
Support

VM/ Mkt / In-

(Stores)

Store Logistics /

Area
Manager /

Business Mgr /

Business

Zonal Head

Manager
Respective
ASM / SM

Functional Head

Finance / HR etc
5.

Understanding of Rating

Rating 5 : OUTSTANDING

ZO

Performance consistently exceeds expectations

Actions / behaviour demonstrates high level of commitment


to the competency

Consistently seeks improvement / job growth

Progressive; not satisfied with status

Requires very little or no guidance

Regularly takes on more than expected and successfully


completes the tasks.

Accepts responsibilities.
Rating 4 : EXCELLENT

Performance exceeds expectations.

Regularly demonstrates competency on the job and in all


dealings

Displays initiative

Seeks improvement / job growth

Requires little guidance

Occasionally takes on more than expected and successfully


completes the tasks.

Accepts responsibility.
Rating 3 : GOOD

Performance meets Expectations

Meets

Standards

and

performs

the

minimum

job

requirements

Demonstrates competency often on the job and in all


dealings

Demonstrates acceptable/dependable performance

Average/satisfactory/does a good job

Requires some guidance

Accepts responsibility

Completes assigned projects.


Rating 2 : NEEDS IMPROVEMENT

Performance below expectation

Demonstrates competency sometimes but needs constant


persuasion

Does not consistently demonstrate ability or willingness to


perform at expected levels

Requires specific guidance

Shows potential for improvement

Performance is expected to improve.

Rating 1 : UNDER-PERFORMER

Performance does not meet expectation most of the times

Never demonstrates positive behavior on the Competency

Has not responded to previous efforts for improvement

Does not demonstrate ability or willingness to perform at


expected levels

6.

Requires significant improvement

Requires substantial guidance

Performance is expected to improve.


Assessment Components KRAs
Weightage for KRA Assessment will be based on the Bands /
Roles; as given below:
Band 1: 80% Band 2 & 3: 70% Band 4 / SM / Store in
charge:
60%

KRA

(Key

Result

Areas)

is

set

of

performance

parameters/measures/targets for the performance year along


with the weightages assigned to them
KRAs are assessed at the following stages:
Appraisees Self Assessment (Band 2 and above)
Appraisers Rating (R) based on performance data.
Reviewers Rating

The Rating would be in a 5 Pt Scale, depending upon the


performance level as per the definition provided.

The weighted score for each KRA is arrived at by multiplying W


& R ( W*R )

The total KRA score is the sum of weighted scores for all KRAs.

7.

Assessment Components Competencies


Weightages in Competency Section will differ Band-wise :
Band 1: 20%; Band 2 & 3: 30%; Band 4 / SM / Store In charge:
40%
Competencies are the list of behaviors that the individual is
required to display continuously on his / her job. The appraisal
form clearly defines each competency and the Appraiser is
required to relate to both demonstrated +ve and ve behaviors
of the appraisee in relation to the competency, while rating them
Each Competency would be rated by self as well as Appraiser
on a 5 Pt. Scale depending on the extent to which it has been
displayed by the appraisee during the year. The ratings should
be supported by critical incidents / example of a key behavior
by the employee

The Final Average score in the Competency section is to be


computed.
8.

Determining the Overall Ratings


Two sections in the appraisal form
o

KRA Assessment

Competency Assessment

Weightage to be given on both the sections as specified in the form.


The sum of the weighted scores will give the final score.
9.

Value Orientation
Our shared Values are critical for our Success and therefore all
employees need to demonstrate behaviors reinforcing/ living
them
Appraiser needs to assess the appraisee on his / her orientation
to each of the 9 Core values of the Company.
The Assessment would vary between Always, frequently,
Rarely and Never and each rating would have to be
supported by mentioning incidents demonstrated by appraisee.
This section has no weightage to the overall rating/appraisal
score but is intended to clearly bring in sensitization of
companys Core values among the employees.

10.

Capturing Training & Development Needs/Potential


The Appraisal is not only an evaluation of past performance but
also an exercise to capture the Developmental Needs of the
Appraisee for enhancing his effectiveness in the Current Role
and preparing him for future likely roles.

Summary comments of Appraiser and Reviewer on potential


should contain comments on preparedness of the Appraisee for
future/higher roles
Promotions recommendations, if any, should be based on
individuals readiness for the role as well as availability of
suitable vacancies.
Adequate justification in terms of enhanced responsibilities /
role etc are also to be furnished
Development Needs in terms of Functional/behavioral Skills are
also to be captured along with recommended mode of learning
best suited to the individual.

11.

Normal Distribution in PMS

Normal distribution is the expected frequency of occurrences for a


set of data
Normal distribution is represented by a Bell Curve which is
symmetrical about the mean / average value
In the context of PMS, it is believed that a set of data on
performance Ratings will fall around a mean value; some would be

above this mean and some below this mean. In effect it is a relative
assessment of performance data.
In our context the Normal Distribution of the Ratings are known as
the Vitality Curve Principle.

12.

The Vitality Curve Principle

TM/TL
Store Level
ADM/DM/ASM
Vitality Curve @ Zonal Level
Support Functions
Function wise vitality curve @ Zonal Level
SMs (All Store In-Charges)
All India Level

13.

Types of Appraisal Forms

All employees at the store level are divided into 3 groups on


account of which 3 types of forms will be used:
Group I:
Store: Team Leaders/ Team Members / Support staff in Band 1
Group II:
ADM / DM / ASM and Support Staff in Band 2 and 3
Support Group includes: HR, Accounts, VM, Warehouse,
Cataloguers, CSD & Head Cashiers, etc
Group III:
DM/ASM (All Store in Charges) & SMs

Decision impacting Appraisals in exceptions


Incase of role change during the year or incase of inter
concept/inter zone transfer appraisal to be completed at the time of
transfer of employees till the date (part period if more than 3
months) of the transfer. The final Rating at the new store should
take into account the performance during the balance/part period of
the Appraisal year and the previous Rating.
Guidelines for increment : Concept / Rating / Performance of the
Unit/Organization will be issued from the HO
Overall rating in its to be considered for Vitality Curve input
should not be rounded off.

3.3

Approaches to Performance Counseling & Feedback

1. Planning Checklist for the Appraisal Meeting

Give the employee a blank appraisal form

Notify employee of time lines for the self-assessment


Notify employee of date, time and place for the formal appraisal
meeting with the Appraiser
Assemble and review employees:
o

Job description

Past appraisals

Performance goals

Your critical incident logs.

2. Preparing the Appraisal Form


When you complete the employees appraisal form,
Make sure that you follow the format/guidelines
Be detailed/data oriented and use specific examples
Be sure the appraisal is
Job-related and objective
Goal-related and based on performance/behavior
Free of personal likes/dislikes and stereotypes
Not overly strict or lenient
Not overly weighted by a single or recent incident.
3. Appraisal Documentation A Must
Consistent:
o use same standards for people in the same job
Personalized:
o use each employees progress toward individual goals
Measurable:
o use numbers to document accomplishments wherever
possible

Result Oriented
o Track results, such as number of jobs completed
Efforts Oriented
o Track dependability, attendance, or ability to follow
instruction
Accurate
o Be Specific and correct about incidents, dates, etc.
Timely:
o Focus on events during the appraisal period.
4.

Appraisal Meeting
The right purpose
Right time and place
Rehearse
Conducting an appraisal meeting
Concerns of Appraisees / Appraisers
Common Pitfalls to avoid
Effective Feedback
Development Planning

5.

The Right Purpose


Primary purpose is to inform employees of performance
Formal appreciation for past/current work
Develop future performance
Explain past behavior that needs improvement.

6.

Right time and place


After the form has been completed
Private Setting/Confidential
Appointment allows for preparation.
7. Rehearse
Take time to think through what you will say
Anticipate questions; develop answers
Anticipate emotional reactions & prepare responses
Plan major points to cover by following the sequence in the
appraisal form
8. Conducting the Appraisal Meeting
How meeting is conducted will influence how the employee reacts
Informal Opening. Make the employee feel at ease.
State Purpose of meeting in objective terms
Review achievements during review period.
Review strengths and areas of improvement
Limit criticisms to a few major points.
Get the employee to agree on areas of improvement.
Stress everyone in the same job in every department is evaluated
the same way
Consider critical incident method
Discuss differences between superiors rating and employees
Discuss plans for improvement and opportunities for employees
future

9. Concerns of Appraisees
Being rated as Needs Improvement or Underperformer
Successful employees look forward to it and failing employees
fear it
Employees feel threatened by possible bias
Acceptance better if employee perceives ability to influence the
evaluation
Perception of appraiser influences acceptance of appraisal
10. Concerns of Appraisers
If

an

employee

is

rated

as

Needs

Improvement

or

Underperformer it would normally demotivate him and prevent


him from concentrating on his work
If I differentiate among my employees, it will create jealousy and
bickering
How can I play God and at the same time tell others what they
are not doing well
Will the feedback affect the smooth sailing situation

11. Appropriate Body Language


Maintain Eye Contact. It gives the appraisee the feeling that you
are genuinely interested in what is happening there.
Arms Crossed means one is defensive and cautious and not
open to receiving information

Resting the elbow on the table or the arm of the chair with the
chin or cheek resting on the palm indicates boredom, casualness
and disinterest. Any movement where head rests on the hand,
suggests the same
Tapping foot or holding something in hand and fiddling with it
or having a key chain in finger and moving it around finger. All
this indicates restlessness, disinterest and a desire to end the
session.
To sit with one's hands behind the head shows superiority. If it
is supported by crossed leg it shows the appraiser is ready to
argue or compete.
12. Listening Skills
Dont allow yourself to get too far ahead of the Appraisee by
trying to understand things too soon.
At intervals, try to paraphrase what people have been saying.
Give them the opportunity to learn what you think youve heard
them say.
When you have difficulty determining the point of the
Appraisees remarks, Ask him to rephrase/repeat to clear the
understanding
Watch for key words if you find youve lost the trail of the
conversation. This happens particularly when the Appraisee is
long-winded or has a tendency to ramble.
Encourage them to speak on relevant areas rather than going all
over.
13. Blocks to Effective Listening

You listened for what you wanted to hear


You were too tired mentally to work at paying attention
There were outside noises and distractions
The appraisee had poor delivery slow, windy, irrelevant,
rambling or repetitious
Something the appraisee said intrigued you, you thought about
it, and when you tuned back in, youd lost the thread
The appraisee had an accent that you found difficult to
understand
You tuned out because you thought you knew what the
appraisee conclusions were going to be
You forgot to use paraphrasing and feedback in listening
effectively
You felt you were being given far too much information
14. Common pitfalls to avoid in an Appraisal
Halo Effect: The extension of overall personality of a person on
a particular trait.
Central Tendency: To avoid extreme ratings
Strictness-Leniency
Playing God : The need to always maintain a positive image
Spillover Effect: Recent Behavior Bias
Friendship/Familiarity/Taking for granted
Stereotypes: A simplified and fixed image of all members of a
culture or group (based on race, religion or ethnicity, age,
gender, national origins etc).
Similar-To-Me Effect

15. Few Dos and Donts


Please ensure that:
The Format used is the right one for the employee
All previous parts ( e.g. Employee data; Self Appraisal; KRAs)
have been completed before you start as the Appraiser/reviewer
You have adequate data on each of the KRAs achievement
status from a valid/transparent source.
All guidelines/definitions are followed while filling up the Form
Any view point expressed by the appraisee gets heard, time
spent deliberating and finally moving on with a conclusion
Dont get biased by : recency, halo effect, similar to me effect
etc
Appraisals are also developmental tools and hence spend
adequate time on the areas which would help the individual
develop his capability
The time lines for completion of the Appraisals are adhered to
All appropriate columns are filled /signed off

16. Giving Feedback Appraisal Form


Understand from the appraisee the rationale of his / her self ratings.
Supplement your ratings with Data
Engage in a dialogue to arrive at the final ratings which are agreed
upon
Highlight achievements in terms of measures / figures For
example: It is great to note that you have achieved 103% of your
sales target for the year.

Highlight what could have been done better


Discuss the appraisees competencies giving examples of critical
incidents where the appraisee demonstrated / did not demonstrate
the competency.
Focus on those aspects of performance that can be improved
Sum up the overall performance clearly mentioning the highlights
as well as areas of improvement.
17. Feedback-Tips
Feedback is part of a process to improve your employees skills,
development, performance
All employees should get the time and attention necessary for
feedback
The focus during a feedback session is on the employee, not the
person giving feedback
Make sure the setting and timing is right
Choose a place and time where you can meet and not be
interrupted even thru Telephone/Mobile Calls
Have an agenda and focus for the meeting
18. Constructive feedback -use I messages
Facts: Describe the problem- (I observed that ...)
Feelings: Describe the impact- (This resulted in .)
Impact: Describe your feelings-(This made me feel ..)
Benefit: Describe the benefit- (This will ..)
Action: Suggest alternative course of action- (You may consider)

19. Implications of Poor Feedback


Poor-quality feedback results in destructive and useless outcomes
Poor feedback process creates 3 negative effects:
o Destroys trust
o Leads to hostile confrontation & problem avoidance
o Fails to stimulate the changes you desire
Feedback creates a hostile environment when the feedback is
offered in away that threatens or defends
Feedback may offend or threaten when :
o Sender judges the motives rather than describing the
behavior
o Sender presents the issue indirectly or with sarcasm
o Sender exhibits anger at the outset of the message

3.4 Feedback is or should be


1. Descriptive
Do not guess motives, blame or judge
Dont use labeling words to describe a person
Move your attention to what they are doing or saying - dont judge
their character or motives
WRONG="You push people around to get your own way."
You are autocratic." "You are inflexible." "You do this bit - you
are creative."

RIGHT="When people take a different point of view, you raise


your voice and restate your same position until people go along
with your idea."
2. Owned
Describe your feelings by using "I"
Speak for yourself - show that these words and feelings are your
own I notice; I would like; I dont like.
Dont mix up your own thoughts and feelings with other people's.
You cant be sure about what others think - unless you ask them
directly.
WRONG="Youre always rushing me."
"Everyone clearly feels uncomfortable about your actions."
RIGHT="I feel angry when you do not pay attention to my briefing
and end up missing some of the details.

3. Balanced
Include a positive message to balance points about less effective
behaviors
Should not be one-sided feedback
Dont start with a negative, or talk only about what you dont like
WRONG= "You end up bringing down the teams output.
RIGHT= "Your contribution was really useful I like the way you
put in a lot of hard work, It would have been more effective if you
had focused on low selling SKUs.

4. Solution Focused
Show that you're willing to give ideas about how the person can
tackle the issues you have raised
Dont be problem focused
Dont launch into what you want to say, without invitation.
WRONG= "If you dont communicate the sales plan to the team
we would have a disaster on our hands.
RIGHT= "Because of the details that need to be taken care of to
ensure successful implementation of the sales plan, it would be
good for you to ensure the whole team understands the issues. Can
we discuss some ideas about how we can make this work in
practice
5. Development Focused
Concentrate on things that can be changed, and link your feedback
to the task or role
Dont focus on the person, focus on the problem
Dont direct your comments to personality, character, attitude or
things the person cant change - like their personal circumstances
or something in the past.
WRONG= "This is exactly what caused the trouble last time. If
you could work early shifts we could meet at 7 am and this would
be solved.
RIGHT= "Its frustrating for me to lose valuable time with you: if
you arrive late, we can't discuss everything we aimed for. Its
important for us to get this right because the team needs a good
decision from us."

6. Specific
Do not use global statement like "always" or "never"
Be clear about the aspect of the persons performance or behaviour
that you want to talk about
WRONG="Youre always a team player"
RIGHT="You take on extra assignments to help the team meet its
objectives even when they are outside of your assigned
responsibilities
"When we started our meeting, you seemed to interrupt quite often
when I was explaining the problem I had. I didnt feel listened to.
Perhaps it would be more effective if I gave you the full picture
first."
7. Use plain, clear language
Choose phrases the person will understand
Be brief and to the point; Successful feedback is easy to understand
Dont give clues, or imply what you want to say; If the person has
to guess what you mean, they may guess wrongly
Poor feedback leaves the recipient in doubt about what you meant
WRONG= "Well its fairly obvious whats going wrong here, isnt
it?
RIGHT= "Its important for the whole team to understand the
impact of Mens Jeans on our Apparel category Sales. I've noticed
that you havent kept your team up to date on this. Id like you to
include updates on performance of Mens Jeans in all your team
meetings.
8. Responding to the Reactive Employee

Let him/her blow off steam but dont respond immediately


Listen & ask open-ended questions to find true nature of resistance
State your point-of-view calmly
Dont try to reach agreement if employee stays angry. Set a 2nd
meeting.
9. Responding to Reactions
Employees with unreasonable expectations
Explain that promotions reward performance over time, perhaps
years
Make no promises to the employee
Dont let the employee infer any commitments
Provide realistic picture of future prospects

10. Development Planning


Get an agreement on specific areas to be improved.
If there are many areas then prioritize
Get the employee involved in the development planning process by
getting the employee to talk about his / her areas of improvement
and how he /she wishes to develop in these areas.
Set clear action plan for development with time frames and review
mechanism
Clearly indicate your support and encouragement

to the

development process
Kindly coordinate with HR to ensure that the development plans
are actioned.

11. Development Planning Appraisal Form


Development is discussed and identified in terms of:
Functional Areas: This has to do with skills / competencies related
to function such as Operational processes, Computer skills, Product
Knowledge, Category management, Finance etc.
Behavioral / Managerial Skills : This has to do with competencies
such as Leadership skills, team building skills, Change
Management, Initiative, Innovation, Selling skills , Customer
Service etc.
Once the development areas have been identified
Lay down a clear Individual development Plan mentioning action
plan / methods of development and time frames
Methods of learning / development could be through
o Projects / work assignments
o Training programmes / educational courses
o Reading books / instructional videos
o Coaching
12. Practice Sessions
The participants break into triads for practice where
One person plays the role of appraiser
One person plays the role of appraisee
The third person plays the role of observer and records his/her
observation on the Feedback form
Once the appraiser and appraisee complete the
appraisal discussion then the observer gives
Feedback / comments on how the discussion went.
(Role Play Scenarios will be handed over by the facilitator)

13.Practice Sessions
Observers guidelines
Criteria

Observations (Pl Note all words /


actions exhibited by appraiser)

Greeting was warm &


friendly.
Established rapport
Body Language was
appropriate
Was prepared

with

adequate

data.

Appeared confident
Showed
good
listening

skills,

paraphrased, checked
for understanding
Examples of Common
Pitfalls if any
Feedback skills
Quality

of

Development
Planning Process
Set target for Next
Year

14. An Effective Appraisal Discussion

The

appraisee

gets

reassured

and

reinforced

with

both

achievements as well as developmental requirements based on the


performance of the year
The data /supportive evidences used are convincing and focused
towards his development
The appraisee got engaged completely in the exercise thru a two
way, free/defenseless communication and opportunity to express
his perspective to each of the areas discussed
Appraisee going through a great experience during the process.

CHAPTER NO 4

4.1

RESEARCH METHODOLOGY

Research means it is a systematic design, collection of data and reporting


data and finding relevant specific marketing situation of the company.
The effective Employee Initiative and Employee Welfare activity help to
improve organizations performance.

4.2

TYPE OF RESEARCH:

The type of research is a Descriptive research. A Descriptive research


describes data and characteristics about the population or phenomenon
being studied. It is used to obtain information concerning the current

status of the phenomenon to describe, What exists with respect to


variables or conditions in a situation
SAMPLING PLAN
Sampling unit: - EMPLOYEESS OF BIG BAZAAR AND FOOD
BAZAAR OF PUNE AND P.C.M.C.
Sampling size: - 90 respondent
Sampling procedure: - random sampling
Contact method: - Direct approach
Area: - FATIMA NAGAR
Data Collection Method.
1. Primary Data
2. Secondary Data
PRIMARY DATA SOURCE:
Primary data sources were the employees of big bazaar and food bazaar
of PUNE region
SECONDARY DATA SOURCE:
The secondary data was collected from the personnel department. Its
comprised of field report books and journals, websites, employee
personal file and company project.
TOOLS FOR DATA COLLECTION
The tools used for data collection was a structured questionnaire which
was according to the objective of my project & administered to 90
existing employees through interviewing method.
DATA COLLECTION METHODOLOGY

The data collection was through a questionnaire that was a tool of


research. The whole survey comprised of questionnaire. For the study
purpose, the communication method was used as it is the most effective
method of designing questionnaire and putting it to use. A structured
questionnaire is a formal list of questions so as to get the facts. The
interviewers ask the questions strictly in accordance with the pre arranged
order.

CHAPTER NO 5

DATA ANALYSIS AND INTERPRETATION


5.1 Analysis of data collected from the Resource Managers
Data Collection
1. What is the periodicity of initiation of Performance Appraisal?
a) monthly
b) quarterly
c) half yearly

d) yearly
No of Employees Covered
90
80
70
60
50
40
30
20
10
0

No of Employees
Covered

Mid Term Appraisal


Yearly Appraisal
Period of Appraisal

Interpretation:
All employees agree that their performance appraisal is held yearly
but for those employees who were not eligible for Yearly Appraisal
they get a chance in Mid Term Appraisal.

2. Who does the Performance Appraisal?


Human Resource Manager
a) Head Of the Department
b) Production Manager
c) Immediate Superior

3
0
25
20
15

Series1

10
5
0

HR

SM

AS
M

D
M

Appraiser

Interpretation:
5% of employees states that HR manager writes the Performance
Appraisal.10 % states that Store Manager writes it. 20% state that
Assistant Store Manager writes the Performance and 65% state that
Department Manager (immediate superior) writes the Performance
Appraisal.

3. Do you sign on Performance Appraisal form?


a) Yes

b) No

Interpretation:
All employees agree that they sign on Performance Appraisal form.

4. Is Performance Appraisal interview conducted?


a) Yes

b) No

Interpretation:
Performance Appraisal interviews are conducted only 73 % of the
employees.
5. Who conducts the Performance Appraisal interview?

a) Human Resource Manager


b) Immediate Superior

Interpretation:
Only 70 % of the employees interviews are conducted by
Immediate Superior. Whereas, 30 % interview are conducted by the
HR manager.

6. Are the strong points brought out during Performance Appraisal


interview?
a) Yes

b) No

Interpretation:

Strong points of assessee are brought down only 53 % of the cases


during Performance Appraisal interview.

7. Are the weaknesses identified during Performance Appraisal


interview?
a) Yes

b) No

Interpretation:
Weaknesses of assessee are identified only 70 % of the cases
during Performance Appraisal interview.
8. Are the training & development needs identified?
a) Yes

b) No

Interpretation:
Only 40 % of the Training & development needs are identified.
9. Are the promotional aspects conveyed?
a) Yes

b) No

Interpretation:
Promotional aspects have been identified only 50 % of employees.
10.Is the Performance Appraisal reviewed or not?
a) Yes

b) No

Interpretation:

Performance Appraisal is reviewed only 80 % of the cases.


11.Whether previous reviews are taken into account while fixing the
targets?
a) Yes

b) No

Interpretation:
Previous reviews are taken into consideration in 87 % of the cases
while fixing the targets.
12.Whether suggestions given in the appraisal are implemented or
not?
a) Yes

b) No

Interpretation:

Only 80 % of the suggestions given in the appraisal are


implemented.
13.Are you aware of how your targets are linked with your
department?
a) Yes

b) NO

Interpretation:
Targets are linked with the department only in 90 % of the
employees.
14.Is the Performance Appraisal system fair Big Bazaar?
a) Yes

b) No

Interpretation:
Only 83 % of employees state that Performance Appraisal system
is fair in Big Bazaar.

15.Is there any weakness in Performance Appraisal system?


a) Yes

b) No

Interpretation:
The weakness is identified in Performance Appraisal system at
57%.

CHAPTER NO 6

6.1 FINDINGS
The following major findings have come out by the study of
Performance Appraisal system.
All employees agree that their performance appraisal is held yearly
but for those employees who were not eligible for Yearly Appraisal
they get a chance in Mid Term Appraisal..
All employees agree that they sign on Performance Appraisal form.
Only 70 % of the employees interviews are conducted by
Immediate Superiors. Whereas, 30 % of the employees interview
are conducted by HR manager.
Strong points of assessee are brought down only 53 % of the cases
during Performance Appraisal interview.
Weaknesses of assessee are identified only 70 % of the cases
during Performance Appraisal interview.

6.2 INFERECES
The following major findings have come out by the study of
Effectiveness of Performance Appraisal System & its Impact on
Organization
Only 40 % of the Training & development needs are identified.
Promotional aspects have been identified only 50 % of employees.
Performance Appraisal is reviewed only 80 % of the cases.

Previous reviews are taken into consideration in 87 % of the cases


while fixing the targets.
Only 80 % of the suggestions given in the appraisal are
implemented.
Targets are linked with the department only in 90 % of the
employees.
Only 83 % of employees state that Performance Appraisal system
is fair in Big Bazaar.
The weakness is identified in Performance Appraisal system at 57
%.

6.3 RECOMMENDATIONS
Only Immediate superior should write the Performance Appraisal.
Performance Appraisal interviews should be conducted in all cases.
Strong points and weaknesses should be identified & conveyed to
assessee.
Training & development needs should be identified & conveyed to
assessee. Training program for junior employees & development
program for senior employees should be conducted.
All the promotional aspects should be conveyed.
The suggestion given in the appraisal should be fully implemented
& if it is not possible, the reason should be mentioned.
The departments targets should be fixed by having discussion with
respective manager and Head of the Department.

6.4 CONCLUSION
The necessity of having a new good appraisal policy backed up
with proper systematic implementation cannot be over looked, as
this is the nucleus on which practices are based. The appraisal
system helps pin point weak areas in the primary system and makes
it easier for managers to see which employees need training or
counseling or have potential for growth,
The appraisal system in Big Bazaar is in accordance with the
modern management theory and conducive to development of the
employee, to their true potential, which intend will lead to
improved productivity, better industrial relations and good
organizational cultural, thus creating spirit of achievement and
completion.
Big Bazaar is one amongst the few Indian companies which
follows sound appraisal policy. Other companies should emulate
from Big Bazaar and carry out necessary changes in the year
appraisal programme to achieve true potential benefits for the
organization.

6.5 BIBLIOGRAPHY

www.performance-appraisal.com.
www.Pantaloon.com .
www.hrmeet.com.

6.6 Annexure

QUESTIONNAIRE
1. What is the periodicity of initiation of Performance Appraisal?
a. Monthly
b. Quarterly
c. Half yearly
d. Yearly
2. Who does the Performance Appraisal?
a. Human Resource Manager
b. Head Of the Department
c. Production Manager
d. Immediate Superior
3. Do you sign on Performance Appraisal form?
a) Yes

b) No

4. Is Performance Appraisal interview conducted?


a) Yes

b) No

5. Who conducts the Performance Appraisal interview?


a) Human Resource Manager b) Immediate Superior
6. Are the strong points brought out during Performance Appraisal
interview?
a) Yes

b) No

7. Are the weaknesses identified during the Performance Appraisal


interview?

a) Yes

b) No

8. Are the training & development needs identified?


a) Yes

b) No

9. Are the promotional aspects conveyed?


a) Yes

b) No

10.Is the Performance Appraisal reviewed or not?


a) Yes

b) No

11.Whether previous reviews are taken into account while fixing the
targets?
a) Yes

b) No

12.Whether suggestions given in the appraisal are implemented or


not?
a) Yes

b) No

13.Are you aware of how your targets are linked with your
department?
a) Yes

b) NO

14.Is the Performance Appraisal system fair in Big Bazaar?


a) Yes

b) No

15.Is there any weakness in Performance Appraisal system?


a) Yes

b) No