Chapter 1

INTRODUCTION

Page 1
 INTRODUCTION

Performance appraisal is the process of obtaining, analyzing and recording information about
the relative worth of an employee. The focus of the performance appraisal is measuring and
improving the actual performance of the employee and also the future potential of the
employee. Its aim is to measure what an employee does. Performance appraisal is a
management tool which is helpful in motivating and effectively utilizing human resources.
Assessment of human potential is difficult, no matter how well designed and appropriates the
performance planning and appraisal system is. Performance appraisal is a method of
evaluating the job performance of an employee. It is an ongoing process of obtaining,
researching, analyzing and recording information about the worth of an employee. According
to Flippo, a prominent personality in the field of Human resources, "performance appraisal is
the systematic, periodic and an impartial rating of an employee’s excellence in the matters
pertaining to his present job and his potential for a better job." Performance appraisal is a
systematic way of reviewing and assessing the performance of an employee during a given
period of time and planning for his future. It is a powerful tool to calibrate, refine and reward
the performance of the employee. It helps to analyze his achievements and evaluate his
contribution towards the achievements of the overall organizational goals. By focusing the
attention on performance, performance appraisal goes to the heart of personnel management
and reflects the management's interest in the progress of the employees. Performance
Appraisal is the systematic evaluation of the individual with respect to his or her performance
on the job and his or her potential for development.

Aims of Performance Appraisal

The following aims might be considered when examining a performance appraisal system:

 Use reliable, fair and objective measures of performance, compare actual with
planned performance, and provide feedback to the appraisal
 Make provision for the allocation of both extrinsic rewards (performance related
pay) and intrinsic rewards (opportunity to enhance one’s skills) following the
assessment process.

 Recognize that performance management is the heart of the general management

process.

Page 2
Objectives of Performance Appraisal

Data relating to performance assessment of employees are recorded, stored and used
for several purposes. The main purposes of employee assessment are:

 To effect promotions based on competence and performance.

 To confirm the services of probationary employees upon their completing the
probationary period satisfactorily.

 To assess the Performance Appraisal needs of employees.

 To decide upon a pay raise where regular pay scales have not been fixed.

Factors Determining Performance Evaluation

 Halo Error: A halo error takes place when one aspect of an individual’s
performance influences the evaluation of the entire performance of the individual.
Rating employees separately on each of a number of performance measures and
encouraging raters to guard against the halo effect are the two ways to reduce the
halo effect.
 Leniency: Every evaluator has his own value system, which acts as a standard
against which he makes his appraisals. Relative to the true or actual performance
an individual exhibits, some supervisors have a tendency to be liberal in their
ratings.

 Central Tendency: This occurs when the evaluator assigns average or middle
ratings to the employees. The attitude of the rater is to play safe. This safe-playing
attitude stems from certain anxieties and doubts about the behavior of employee.
Such tendency distorts the evaluation.

 Rater Effect: This includes favoritism, stereotyping and hostility. Excessively

high or low scores are given only to certain individuals or groups based on the
rater’s attitude towards the rate. Age, sex, race and friendship biases are examples
of this type of error.

Page 3
  Perceptual Set: This occurs when the rater’s assessment is influenced by
previously held beliefs. If supervisor, for example, has a belief that employees
hailing from one particular region are hard working, his subsequent rating of an
employee hailing from that region tends to be favorably high.

 Spillover Effect: This refers to allowing past performance appraisal ratings to

unjustifiably influence current ratings. Past ratings, good or bad, result in similar
rating for the current period although the demonstrated behavior does not deserve
the rating good or bad.

 Status Effect: It refers to overrating of employees in higher level job or jobs held
in high esteem, and underrating employees in lower level job or jobs held in low
esteem.

Appraisal Methods

The last to be addressed in the process of designing an appraisal program is to

determine methods of evaluation. Numerous methods have been devised to measure
the quantity and quality of employee’s job performance. Broadly, all the approaches
of appraisal can be classified into:

 Past oriented Methods, and

 Future oriented Methods

Past Oriented Methods

 Rating Scale: This is the simplest and most popular technique for appraising
employee performance. The typical rating scale consist of several numerical
scales, each representing a job related performance criterion such as dependability,
initiative, output, attendance, attitude, co-operation, and the like. Each scale
ranges from excellent to poor. The rater checks the appropriate performance level
on each criterion, and then computes the employee’s total numerical score. The
number of points scored may be linked to salary increase. The disadvantages of
this method are several. The rater’s biases are likely to influence evaluation.
 Checklist: Under this method, a checklist of statements on the traits of the
employee and his or her job is prepared in two columns i.e., a ‘Yes’ and a ‘No’

Page 4
 column. All that the rater should do is tick the ‘Yes’ column if the answer to the
statement is positive and in column ‘No’ if the answer is negative. After ticking
off against each item, the rater forwards the list to the HR department where the
actual assessment of the employee takes place. The advantages of a checklist are
economy, ease of administration, limited training of rater and standardization.

 Essay Method: In the essay method, the rater must describe the employee within
a number of broad categories, such as:

i) The rater’s overall impression of the employee’s performance,

ii) The promo ability of the employee,

iii) The jobs that’s the employee is now able or qualified to perform,

iv) The strengths and weaknesses of the employee,

v) The training and the development assistance required by the employee

The strength of the Essay method depends on the writing skills and analytical
ability of the rater. A problem with this method is that the rates may be rated
on the quality of the appraisals that they give.

 Ranking Method: In this, superior ranks his or her subordinates in the order of
their merit, starting from the best to the worst. The HR department knows that A is
better than B. The ‘how’ and ‘why’ are neither questioned nor answered. This
method is subject to the halo effects. Its advantage includes ease of administration
and explanation.
 Forced Distribution Method: One of the errors in rating is leniency- clustering a
large number of employees around a high point on a rating scale. This method
seeks to overcome the problem by compelling the rater to distribute the rates on
all points on the rating scale. The method operates under an assumption that the
employee performance level conforms to a normal statistical distribution. The
major weakness of the forced distribution method lies in assumption that
employee performance levels always conform to a normal distribution.

Page 5
Future Oriented Appraisal

 Management by objective: It was Peter Drucker who gave first the concept of
MBO to the world way back in 1954.. Application of MBO in the field of
performance appraisal is a recent thinking. One comment made against the
approach is that it is not applicable to all jobs an all organization. Objectives are
agreed and formulated at the beginning of the period under review, and the
appraisal is given the necessary assistance and training to facilitate the
achievement of those objectives.
 Psychological Appraisal: Large organization employs full-time industrial
psychologists. When psychologists are used for evaluations, they assess an
individual’s future, potential and past performance. The appraisal normally
consists of in-depth interviews, psychological tests, discussions with supervisors
and a review of other evaluations. The psychologist then writes an evaluation of
the employee’s intellectual, emotional, motivational and other related
characteristics that suggest individual potential and may predict future
performance. From these evaluations, placements and development decisions may
be made to shape the person’s career.

 Assessment Centers: Mainly used for executive hiring. Assessment centers are
now being used for evaluating executive or supervisory potential. An assessment
center is a central location where managers may come together to have their
participation in job-related exercises evaluated by trained observers. Assesses are
requested to participate in in-basket exercises, work groups, computer simulations,
role playing and other similar activities. After recording their observations of
rate's behaviors, the raters meet to discuss these observations. Self-appraisal and
peer evaluation are also thrown in for final rating.

 360-Degree Feedback: Where multiple raters are involved in evaluating

performance, the technique is called 360-degree appraisal. The 360-degree
technique is understood as systematic collection of performance data on an
individual or group, derived from a number of stakeholders- the stakeholders
being the immediate supervisors, team members, customers, peers and self. The
360-degree appraisal provides a broader perspective about an employee’s

Page 6
performance. However, there are drawbacks associated with the 360-degree
feedback. Receiving feedback on performance from multiple sources can be
unapproachable. It is essential that the organization create a non-threatening
environment by emphasizing positive impact of the technique on an employee’s
performance and development. More and more number of firms are using 360-
degree appraisal technique to assess the performance of their employees.

Page 7
Appraisal Process

The figure outlines the performance appraisal process. Each step in the process is
crucial and is arranged logically.

How to Conduct a Performance Appraisal Process

The following five-step approach to conducting a systematic performance appraisal is
recommended:

 Identify key performance criteria

 Develop appraisal measures

 Collect performance information from different sources

 Conduct an appraisal interview

 Evaluate the appraisal process.

Step 1: Identify Key Performance Criteria

Perhaps one of the most challenging aspects of setting up a performance appraisal is deciding
what to assess. In essence, four key dimensions of performance should be considered in a
performance appraisal.

Page 8
Key Dimensions of Performance
To ensure that the performance criteria are relevant to work practice and acceptable to
appraisers and employees:
i) Base the performance criteria on an up-to-date job description
ii) Develop criteria in consultation with appraisers and employees.

i) Base the performance criteria on an up-to-date job description:

Clear and explicit links between performance appraisal and a job description will
ensure the relevance of the appraisal. If a detailed job description is not available or is
out-of-date, it is strongly recommended that an accurate job description be developed
prior to conducting a performance appraisal.

ii) Develop criteria in consultation with appraisers and employee:

Linking performance appraisals with job descriptions can help to focus the appraisal
process on the key competencies, behaviors and outcomes associated with a particular
role or position. It can also be useful to consult with employees to:

 Ensure that key aspects of a role / position are represented in the job description,
for example:
 Conduct assessments

 Plan interventions

 Manage cases

 Liaise with and refer to other providers

 Keep up-to-date service records and case notes

 Write reports

 Develop a clear understanding of the relative importance of various competencies,

 Behaviors and outcomes

Page 9
  Identify how these key competencies, behaviors and outcomes can be fairly and
accurately assessed.

Employees are more likely to accept and be satisfied with the appraisal system if they
participate in the development of appraisal criteria and measures, and in the process of
conducting appraisals.
Strategies for facilitating employee’s participation include:

 Engagement in formal meetings or informal discussions with supervisors to seek

input and / or feedback on appraisal measures and criteria
 Representation on groups / committees involved in the design and implementation
of

 performance appraisals

 Inclusion of self appraisals in the appraisal process

 Providing opportunities for employees to contribute to the performance appraisal

of coworkers and managers / supervisors.

It is also important that employees perceive the appraisal system to be equitable and fair.

Step 2: Develop Appraisal Measures

Once clear and specific performance criteria have been developed, the next step is to decide
how to assess employee’s performance. It is recommended that a structured and systematic
approach is taken to assessing performance. Problems that arise when an unstructured “blank
sheet” approach is used include:

 Increased chance of appraiser errors (i.e., reduced accuracy)

 Knowledge, skills and abilities most critical to job performance may be
overlooked

 (i.e., feedback may have limited impact on performance effectiveness)

 Reduced consistency between appraisers (i.e., evaluations may reflect differences

between appraisers rather than actual differences in a employee’s performance)

Page 10
  Perceptions of “subjectivity” in evaluations, which may in turn, reduce
employee’s satisfaction with, and acceptance of appraisals.

There are three important considerations in the design of appraisal measures:

Generic versus individually tailored measures.
Objective versus subjective assessments
Assessing the impact of the work environment on performance.
i) Generic versus individually tailored measures
Many workplaces use a generic rating form for all employees irrespective of their role
or position within the organization. Although this approach can save time and
minimize cost, the accuracy and relevance of appraisals may be significantly
diminished. The “one size fits all” approach of generic measures may overlook
important performance criteria that are relevant to particular jobs, and may also
include criteria that are irrelevant to others.

Where time and other resources permit, it is more appropriate to construct appraisal formats
tailored to specific jobs or “families” of jobs. If the development of job-specific (i.e.,
individually tailored) appraisal formats is beyond the resource capacity of the organization,
an alternative would be to develop two groups of criteria:

 Core competencies that have applicability to the performance appraisal of all

employees within the organization.
 Additional competencies applicable only to some jobs and included in the
performance appraisal if relevant.

ii)Objective versus subjective assessments

A basic distinction between different types of appraisal measures concerns the use of
objective or subjective criteria.

Objective assessments of work performance

Objective measures of job performance involve counts of various work- related behaviors.
Some common objective job performance measures include
 Absenteeism (number of days absent)
 Accidents (number of accidents)
 Incidents at work (number of incidents / assaults / altercations)

Page 11
  Lateness (days late)
 Meeting deadlines.
Objective measures can be relatively quick and easy to obtain (given good organizational
record-keeping). However, it can be unwise to place too much emphasis on these types of
objective measures. An exclusive focus on results / outcomes may mask factors that impact
on employee’s performance that are beyond their control (e.g., client workload).

Subjective assessments of work performance

Subjective measures rely on the judgment of an appraiser (self, coworkers, or supervisor).
Subjective assessments are commonly used in performance appraisals and often involve
the use of rating scales. Subjective assessments are more likely to provide accurate
performance appraisals when:

 The behaviors and outcomes being assessed are stated in clear behavioral terms
.The employee understands the measures (e.g., rating scales) being used to
evaluate their performance, and agree that the measures are fair and accurate (i.e.,
measures what it is supposed to).
 Measurement is as brief as possible whilst addressing essential behaviors and
outcomes (frustration with long and unwieldy questionnaires may introduce error
in responses).
Assessing the impact of the work environment on performance
The goal of a performance appraisal is to support and improve employee’s performance and
effectiveness. Therefore, it makes sense for an appraisal to include an assessment of factors in
the work environment that help or hinder a employee’s capacity to perform effectively.
Explicit assessment of environmental factors is also likely to increase the perceived fairness
and acceptability of performance appraisals.
For example, an employee’s capacity to provide effective treatment interventions is
influenced by factors such as:

 Access to private, soundproofed, adequately sized rooms for counselling

 Availability of validated, user-friendly assessment tools

 Availability of reliable and approachable management / administration.

Page 12
Step 3: Collect Performance Information from Different Sources
Once the appraisal measures are developed, the next step involves collection of accurate
performance information. A common trap is to begin noting observations of employees just
before conducting appraisals. This is likely to give an inaccurate picture of a employee’s
performance. Ideally, employee’s performance should be observed in a systematic way over
time (e.g., in a diary). This method ensures the accuracy of information about their
performances.
Many employees in the organization operate with a relatively high degree of autonomy. This
combined with the heavy workload of most managers / supervisors, may limit opportunities
to conduct regular observation of employee’s performance. In addition, perceptions of
ongoing monitoring may foster a sense of surveillance which can damage staff morale.
A more suitable approach may be to keep critical incident reports that note specific examples
of both excellent and unsatisfactory performances. Supervisors can also encourage employees
to keep track of their own performance records such as emails or letters that commend them
on their achievements.
Traditionally, it has been the sole responsibility of managers / supervisors to assess
performance. However, other organizational members can be a valuable source of
information as they are likely to have exposure to different aspects of a employee’s
performance. This approach is known as 360-degree feedback. For instance, coworkers can
provide valuable information on teamwork skills, and subordinates can provide useful
information on leadership style.
There are many advantages to obtaining feedback on performance from sources other than
supervisors or managers. Key benefits include:

 Accuracy and reduced bias (incorrect information from one source can be
corrected from another)
 Increased likelihood that employees will perceive the performance appraisal
system to be a fair and accurate reflection of their performance (compared to
relying on supervisor ratings alone).

If time and resources are limited, it is recommended that supervisor appraisals be conducted
in conjunction with self-assessment. Including self-assessments as part of the appraisal
process is likely to enhance employee’s commitment to, and satisfaction with, the appraisal

Page 13
process. It also provides employees with an opportunity to identify barriers and facilitators to
effective performance in their work environment.
Five different sources of performance appraisal information are considered here:

 Manager / supervisor appraisals

 Self appraisals

 Coworker appraisals

 Subordinate appraisals

 Client appraisals

Manager / supervisor appraisals:

Managers / supervisors play a central role in the appraisal process, and should always
be included as one of the main appraisers. In essence, managers and supervisors have
two roles in performance appraisal:

 “Judge”: assessing performance

 “Coach”: providing constructive feedback and identifying areas for improvement.

Performing both roles simultaneously can be difficult. Employees may be reluctant to admit
areas for improvement if performance assessment is linked with desired outcomes such as
pay, promotion or opportunities to work in desired areas. One solution is to separate the judge
and coach roles by conducting separate appraisal meetings.
Self-appraisals:
The process of evaluating one’s own performance can help to increase employee’s
commitment to the appraisal process, perceptions of appraisal fairness, and
satisfaction with the appraisal process. Self-appraisal can also be useful for
identifying areas for development. Not surprisingly, self-appraisals are usually biased
towards leniency. Strategies to increase the accuracy of self appraisals include:

 Using clear definitions of performance criteria linked to specific, observable

behaviors Informing employees that their ratings will be checked and compared to
other sources of
 appraisal (i.e., for accuracy)

Page 14
  Ensuring employees receive regular feedback on their performance.
It is recommended that self appraisals are used for professional development purposes, rather
than for making administrative decisions (i.e., pay increases, promotion).

Coworker appraisals:
Coworkers can provide valuable feedback on performance, particularly where teamwork
occurs. Coworkers are often aware of different aspects of a employee’s performance that
managers /supervisors may not have the opportunity to observe. In addition, as there is
usually more than one coworker who rates a worker’s performance, their evaluations tend to
be more reliable. Coworker evaluations, however, may be biased towards those individuals
most well liked in an organization (i.e., friendship bias). Furthermore, coworker appraisals
may have a negative impact on teamwork and cooperation if employees are competing with
one another for organizational incentives and rewards. It is recommended that coworker
appraisals are used for professional development rather than administrative decisions.

Subordinate appraisals:

Subordinates are a valuable source of information regarding particular aspects of a supervisor

or leader’s performance such as communication, team building or delegation. Subordinates
can provide feedback to help managers / supervisors develop their skills in these areas. The
focus should be on aspects of managerial performance that subordinates are able to comment
upon. This source of appraisal may only be appropriate in larger organizations where there
are sufficient subordinates to allow anonymity.

Client appraisals:
Clients may also offer a different perspective on a employee’s performance, particularly for
jobs that require a high degree of interaction with people. For example, client appraisals can
be a valuable source of feedback regarding the quality of service provision (e.g., the quality
of interaction, degree of empathy, level of support, degree of professionalism).

Organizations often have performance contracts that specify goals and deliverables for client
outcomes. Whilst it is important that organizational goals and deliverables are reflected in the
appraisal criteria for individuals and teams, it is recommended that particular care be taken if
incorporating client outcomes
Relying on client outcomes as an indicator of performance can have undesirable effects due
to the complex and sensitive nature of work. A range of factors may influence client

Page 15
outcomes, many of which are outside the control of an individual employee. It is rare for a
successful (or otherwise) outcome to be the sole result of one person’s efforts. This makes
client outcomes a poor reflection of the quality of treatment provided by the employee. For
example, “good” employee performance will not always bring about client improvements,
and client relapses may not be due to “poor” employee performance.
In addition to considering client outcomes, it may also be beneficial to focus on employee’s
skills and abilities in providing services per se (i.e., independent of client outcomes).

Page 16
Strategies to support appraisers and enhance appraisal accuracy
Rating another person’s performance is not an easy task, particularly with complex jobs or
performance criteria. Strategies to support appraisers and increase the likelihood of accurate
assessments include:

 Providing practical training in rating techniques, which includes opportunities to

practice appraising performance and providing feedback
 Limiting the assessment to performance criteria that an appraiser has observed
/experienced in regard to the employee

 Providing structured assessment tools with clear explanations regarding the

criteria to be assessed, and performance standards.

Step 4: Conduct an Appraisal Interview

The next step in a performance appraisal is to conduct the appraisal interview. The two
central purposes of the appraisal interview are to:

 Reflect on past performance to identify major achievements, areas that require

further development, and barriers / facilitators to effective performance
 Identify goals and strategies for future work practice.

As discussed below, supervisors and managers can use a range of strategies to ensure that the
appraisal interview is positive, constructive and of greatest benefit for employee’s
effectiveness.

Before the interview

 Help employees to become familiar and comfortable with talking about their
performance by engaging in regular, informal communication on work progress,
potential obstacles and issues, possible solutions and assistance
 Encourage employees to prepare – employees should be encouraged to review
their own performance before the interview

 Do your own preparation – plan ahead. Draft a list of the issues that you want to
address with the employee (i.e., strengths and weaknesses of performance,

Page 17
 strategies to improve performance). Give specific examples of the employee’s
performances that you want to highlight. During the interview

 Encourage employee participation – start by inviting the employee to share their

views about their performance

 Begin with positive feedback to put the employee at ease

 Make it a two-way discussion

 Set goals mutually – ensure employees participate in determining specific,

challenging but attainable goals for future work performance

 Ensure that there is a clear agreement on performance objectives and the

evaluation criteria for the next year

 Keep written records of the appraisal interview on which both parties have
“signed off”.

After the interview

 Coach employees regularly – provide frequent feedback to help employees

improve their performance
 Assess progress towards goals frequently – periodic reviewing of progress
towards goals helps keep behavior on track and enhances commitment to effective
performance.

 Relate rewards to performance – by linking appraisal results to employment

decisions such as promotions and salaries, employees are more likely to prepare
for, participate in, and be satisfied with the appraisal system.

Step 5: Evaluate the Appraisal Process

As with any organizational system, the performance appraisal process should undergo regular
review and improvement. For example, the process of performance appraisal could be
evaluated by conducting focus groups or surveys with employees to gauge their satisfaction
with the appraisal process (and suggestions for improvements). It may also be useful to

Page 18
monitor the types of issues raised by supervisors and employees over time. A successful
performance appraisal process should demonstrate a change in both the ratings of employee’s
performance (i.e., ideally performance ratings should improve, or at least remain at a
satisfactorily stable level over time) and the work environment (i.e., evidence that significant
barriers to work practice are being addressed by the organization).
bai are also heavily assisted by the retail sector.

Page 19
 Chapter 2
OBJECTIVES OF THE
STUDY

Page 20
 OBJECTIVES OF THE STUDY

 To identify the awareness level of performance appraisal technique among the

employees.
 To study about maintain records in order to determine compensation packages
wage structure, salaries raises etc

 To identify the strength and weakness of employee to place right men on right
job.

 To study about feedback of employees regarding their performance.

Page 21
 Chapter 3
SCOPE AND IMPORTANCE
OF THE STUDY

Page 22
 SCOPE AND IMPORTANCE OF THE STUDY

The aims at this project report are to identify the performance appraisal program of the
employees of various departments of LG and gain the partial knowledge of Performance
Appraisal program conduct by the H.R. Department of the company.
Thus it shows that Performance Appraisal has been becoming more and more important part
of any industrial undertaking. Moreover management ability does not come automatically. It
comes slowly and gradually from training experience and growth, since the days of the early
Management pioneers, training has been recognized as vital and legitimate area of corporate
concern.

Page 23
Chapter 4
COMPANY
PROFILE

Page 24
 COMPANY PROFILE

LG Electronics is one of the leading companies in the field of electronics with a global
presence in many countries.

History of company
The company was originally established in 1958 as Gold Star, producing radios, TVs,
refrigerators, washing machines, and air conditioners.

The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the
abbreviation of LG was derived. The current "Life's good" slogan is a backbone Before the
corporate Name change to LG, household products were sold under the Brand name of
Lucky, while electronic products were sold under the brand name of Gold Star. The Gold Star
brand is still perceived as a discount brand.

In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics of the
United States.

Global Operation
LG Electronics is playing an active role in the world market with its assertive global business
policy. As a result, LG Electronics controls 110 local subsidiaries in the world with around
82,000 executive and employees.

LG Group
1. LG.Philips LCD
2. LG Chemical

Page 25
 3. LG Telecom
4. LG Powercom
5. LG Twins
6. LG Dacom

Business areas and main products

Mobile communications
(a) CDMA Handsets,
(b) GSM Handsets,
(c) 3G Handsets,
(d) Cellular Phones

Digital appliance

a) Air Conditioners,

b) Refrigerators,
c) Microwave Ovens,

d) Washing Machines,

e) Vacuum Cleaners,

f) Home Net,

g) Compressors for Air Conditioners and Refrigerators

Digital media
a) Home Theater Systems,
b) DVD Recorders,

c) Super Multi DVD Rewriters,

d) CD±RW,

e) Notebook PCs,

Page 26
 f) Desktop PCs,

g) PDAs,

h) PDA Phones,

i) MP3 Players,

j) New Karaoke Systems,

k) Car Infotainment

LG BRAND IDENTITY:-
The brand of LG is delightfully smart. LG strives to enhance the customer’s life and lifestyle
with intelligent features, institutive functionality and exceptional performance.
The brand platform:-
The LG brand is composed of four basic elements –
1. Value
2. Promise
3. Benefits
4. Personality
The Brands core Value that never changes.
a. Trust,
b. Innovation,
c. People
d. Passion
The benefits that are consistently delivered to the customer includes
a. Reliable products
b. Simple design
c. Ease of use
d. Extraordinary Experience
Personality describes the human characteristic that are expressed to the customer through
a. Trustworthy, Considerate
b. Practical, Friendly

Page 27
The Internal Culture of LG:
LG practices four cultures
1. Learning Culture
2. Boundary less Environment
3. A Carrier
4. Growth
According to LG, the Learning Culture continuously helps the employee to learn more and
more to develop the habit of continuous learning.
Boundary less Environment means that there is no difference between the levels of
employees. There is transparency between the work and mutual understanding between all
the employees.
A carrier is highly growing in LG and one who is the employee can develop their carrier
largely. A new comer will feel fully comfortable in the company and for a new comer the
company is very helpful in the overall growth of personality.
Growth in LG is very high for those who are in the company and for those who want to join
in LG. The company is growing with fast innovation and the BLUE Ocean strategy is one of
the examples of growth.
Mission
The mission of LG is to provide the customers with utmost satisfaction through leadership.
The fundamental policy of development is to secure product leadership that the
Customers may have the utmost satisfaction.
Product Leadership
We are focusing on six development areas to become the product leader.
1. New Machine
2. Reliability
3. Conventional Installation
4. Environment Friendly Product
5. Low Noise & Vibration
6. Energy Saving

LG proceeds in a hierarchal manner. It is named as “LG WAY”.

From top to bottom:
No.1 LG – is the VISION

Page 28
“Jeong-DO” Management is LG’s unique application to ethics. LG will succeed through
fair management practices and constantly developing our business skill.
a) Honest with our customer
b) Providing great values to customer through constant innovation & and development.

c) Equal opportunities
d) Equal Treatment
Management Principle - Creating value for customer

Page 29
Code of conduct of LG:
1. Responsibility and obligations to customers :
• Respect for Customers
• Creating Value
• Providing Value
2 Fair competition
• Pursuit of Free Competition
• Compliance with Laws and Regulations
3 Fair Transaction :
• Equal Opportunity
• Fair Transaction Procedure
• Support and Aid for Business Partners
4 Basic Ethics for Employees
• Basic Ethics
• Completion of Duty
• Self Development
• Fairness in Performance
• Avoidance of conflict with company interest
5 Corporate Responsibilities to employees
• Respect for human dignity
• Fair Treatment
• Promoting Creativity
6 Responsibilities to society and country
• Rational Business Development
• Protection of stock holder interest
• Contribution to social development
• Environmental Conservation

Page 30
LG INDIA:
LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea
was established in January 1997 after clearance from the Foreign Investment Promotion
Board (FIPB). LG set up a state-of-the art manufacturing facility at Greater Noida, near
Delhi, in 1998, with an investment of Rs 500 Crores.
LG corporate office is located at Plot no.51, Udyog Vihar, Kasna Road, Greater Noida, India.
This facility manufactured Color Televisions, Washing Machines, Air-Conditioners and
Microwave Ovens.
''Company is setting up a chain of exclusive premium showrooms. LG plans to launch 60
premium Brand Shoppes by the end of the first quarter of this year. At present, LG has a total
of 83 LG stores across the country, of which 45 are shoppes and 38 are exclusive stores.
Brand shoppes will be placed in the premium segment and the target audience will comprise
buyers interested in premium and high end products.
LG Brand Shoppe goes beyond the concept of a normal exclusive store by having a more
interactive environment and additional lifestyle orientation on display so that the customer
can actually experience the LG products in his or her own home settings.
LG Electronics India Ltd (LGEIL), consumer durables leader with 27% market share, is
planning a brand new image. To attract inspirational and young consumers across India,
company will roll out a new marketing strategy. The exercise will cost the company Rs 360
crore.
LG Electronics India is the fastest growing company in the consumer electronics, home
appliances, and computer peripherals industry today.
LG Electronics is continually providing, superior technology products & value for money to
more than 50 lakh households in India. LGEIL is celebrating the 11th anniversary this
year.
LG Soft India the innovation wing of LG Electronics in Bangalore is LG Electronics' largest
R&D centre outside Korea. We at LGSI focus on niche technology areas such as mobile
application development, digital video broadcast and biometrics software and support LG
Electronics with our expertise. Motivated by a passion for technology, a strong work culture
and loyalty to the organization, we are determined to see LG become one of the top three
brands globally.
Prominent consumer electronic company, LG Electronics Inc. has said that it expects the sale
of its products in India to up by 15 per cent in 2008. Moon Bum Shin, managing director of
LG Electronics India has said that the company has earmarked 4.8 billion rupees for

Page 31
investment purpose in India this year. The said money will be used to market as well as
manufacture new products.
LG Electronics, which is originally a South Korean Company with branch in India, informed
that its sales of GSM mobile phones, color televisions, air conditioners and other household
goods in the Indian market was to the tune of 95 billion rupees ($2.4 billion) in 2007. As per
Shin's estimate, the sales in 2008 would be around 110 billion rupees.
In order to achieve its target, Shin said LG Electronics will concentrate on catering to the
high-end consumer market which will help boost sales this year. India churns out six (6) per
cent of LG Electronics global revenues of $42 billion. The Indian branch of LG exports to 40
countries.
India challenges
The challenges faced by LG when entered in Indian market
1. Low brand awareness about LG in India.
2. One of the last MNCs entered in India (LG, Panasonic entered in 1995 in India).
3. High import duty
4. Competition from local market players and other MNCs in consumer durable
segment.
5. Price sensitiveness of the Indian consumer

LG over comes these challenges to emerge as

 Innovative marketing strategy
1. Launch new technologies in consumer electronic and home appliances.
2. LG was the first brand to enter in cricket in big way a way, by sponsoring the 1999
world cup followed it up in 2003 as well.
3. LG brought in four captains of the Indian cricket team to endorse its products. LG
invested more then US$ 8 million on advertising and marketing in this sport.
4. LG has differentiated its product using technology and health benefits. CTV has
“Golden eye technology” Air conditioner has “Health air system” and microwave
ovens have the “Health wave system”.
 Local and efficient manufacturing to reduce the cost
To overcome high import duties LG manufactures TV refrigerator in India at manufacturing
facility at Noida and Pune. LGEI had already commissioned contract manufacturing at
Mohali Kolkata and Bhopal for CTVs. This has helped LGEI to reduce cost. LGEI

Page 32
implementing the “Digital manufacturing system” (DMS) as the cost cutting innovation this
system is follow-up to the six sigma exercise LGEI had initiate earlier.
 R&D potential
LG has the research and development facilities in Bangalore and Pune. Both the unit carry
out R&D department for the domestic as well as the parent company it also dose customize
R&D for the specific countries to which it export product.
 Regional channel and wide distribution network
1. LG has adopted the regional distribution channel in India. All the distributers work
directly with the company. This has resulted in quicker rotation of the stock and better
penetration into B, C, D, class market.
2. LG also follows the stock rotation policy rather then dumping stock on channel
partners.
Product localization:-
1. Product localization is the key strategy used by the LG
2. LG came out with Hindi and regional language menus on its TVs.
3. Introduced the low-priced “Cineplus” and “sampooma” for the rural market.
4. LG was the first brand to introduce gaming in TVs in continuations of its association
with cricket LG introduce cricket game in CTVs

MAJOR KEY SUCCESS FACTORS

1. Innovative marketing - LG was the first brand to enter cricket in a big way, by
sponsoring the 1999 World Cup and followed it up in 2003 as well.

2. Local and efficient manufacturing to reduce cost - To overcome high import duties,
LG manufactures PC monitors and refrigerators in India at its manufacturing facility
at Noida, Delhi.

3. Commissioned contract manufacturing at Mohali, Kolkata and Bhopal for CTVs.

4. Product localization - Product localization is a key strategy used by LG. It came out
with Hindi and regional language menus on its TV.

5. Regional distribution model - This has resulted in quicker rotation of stocks and better
penetration into the B, C and D class markets.

Page 33
Page 34
Page 35
 Chapter 5
LITERATURE
REVIEW

Page 36
 LITERATURE REVIEW
Bélanger et al.’s conceptualisation, based as it is upon three interrelated principles, exposes
the difficulty of seeking to capture the contours of this complex phenomenon via a single
phrase. As noted, Danford et al.’s (2004) notion of high performance work systems implies a
distinctly mechanistic approach downplaying the role of human agency. Harmon et al.’s
(2003) phraseology of high involvement work systems is sensitive to the dimension of work
organisation, capturing the need for there to be enhanced opportunities for employees to
make decisions, exercisediscretion and mobilise tacit knowledge, but again complementary
HR issues are eclipsed. Conversely, the term high commitment management is sensitive to
the latter sphere, the elision here, however, concerns facets of production management and
work organisation. For these reasons in this review the phrase high performance management
(HPM)4 is utilised as an all encompassing term, providing a broader and more generic
conception of the terrain than the above terminologies; in essence a composite embracing
Bélanger et al.’s three dimensions. So armed with both conceptual clarity, and indeed a
powerful analytical tool, we move on to consider the principal theoretical debates
surrounding the phenomenon.
A large body of literature has existed for some years extolling the virtues of HPM. An
oversight within much of the output, however, is the presupposition that the prospects for
successful implementation can be taken at face value regardless of the macropolitical and
economic landscape. This charge applies not just to the more prescriptive accounts but
similarly to much of the academic literature6. In recent years, however, a more thoughtful
stream of work has emerged less inclined to reify HPM into a phenomenon independent of
context. Intellectually this body of work has its provenance in a particular strand of
comparative political economy – the institutionalist approach – as enunciated by
commentators such as Whitley, Lane, and perhaps most eloquently by Hall and Soskice
(2001). The essence of this position is that the macro-institutional framework within which
firms operate serves to influence and restrict available business strategies. The industrial
relations system; the system of training of workers and managers; the internal structure of
corporate firms; the structured relationship between firms in the same industry and their
suppliers; the financial markets of a society; and the structure of the state and its policies.
Characteristically the UK (alongside the US7) is regarded as a paradigmatic example of a
liberal market economy (LME). Orthodox institutionalist accounts indicate the presence of

Page 37
pervasive pressures militating against long-term planning within this mode of capitalism.
Typically, two principal ‘market failure’ arguments are advanced.
The first is that the development of equity markets, dominated by large institutional players
such as pension and mutual funds, encourages a short-term approach to both capital
investment and the development of human resources. It is argued that because HPM involves
high short-run costs it is a difficult strategy for many firms to pursue, particularly in the face
of competition from cost minimising firms following a ‘lowroad’ approach to competition
(Konzelmann and Forrant, 2000, p. 6). This can be seen as undermining the ability of
organisations to implement and maintain the bundles of practices subsumed within HPM.
Within the context of such ‘destructive markets’ (ibid) organisations often prefer to ‘shrink or
transact their way to profit’ (Pfeffer cited in Keep, 2000, p. 11) undermining, for example, job
security, a facet generally regarded as central to the employee relations sphere of HPM (Forth
and Millward, 2004; but see also Harley, 2002, p. 43, whose findings question this latter
assumption). The tying of senior managerial structures of reward to the performance of
equities consolidates the process8 (Pfeffer cited in Keep, 2000, p. 12). Secondly, it is argued
that the absence of institutions to regulate training and development across firms and sectors
encourages a similar mindset of short-termism. Companies are fearful of investing in their
employees’ human capital for fear of poaching by competitors. Better to recruit ‘oven ready’
employees than incur costs through externalities. It is a short leap from this kind of analysis
to posit a path dependency, whereby the institutional embeddedness of firms in LMEs
generally is depicted as rendering any shift to HPM at best problematic.
Such structurally inspired determinism very much represents the dominant discourse within
many accounts. For Thompson (2003) the key to the successful implementation of HPM is
reciprocity. That is, in return for employee participation in the micro-management of work
and expanded responsibilities, employers should undertake commitment and trust building
measures in the employment relationship (ibid, p. 363). The call is for ‘investment in human
capital through training, enhanced career structures, job stability and performance and skill
based reward measures’ (ibid). The potential for the realisation of this vision, however, is
difficult to achieve within the constraints of contemporary neo-liberalism. Strong reservations
are expressed with regard to the sustainability of the putative model under current modes of
corporate governance, specifically short-term stock market pressures and the resultant pursuit
of shareholder value. The overall prognosis is one of pessimism with Britain destined to
remain ‘considerably short of even the minimum conditions of a high-skilled ecosystem’
(ibid, p. 368).

Page 38
Bélanger et al. (2002) similarly view the ‘dominant neo-liberal discourse’ as problematic for
the emergent model and the overall tenor of this account offers limited scope for optimism.
Echoing Thompson, the implicit message is again one of the need for reciprocity between
capital and labour. Hence, much of the account is bedecked in the lexicon of neo-corporatism
with references peppered throughout to social compromise, social pacts, a new social
contract, and multipartite consultation. At the core of this account is the principal theme that
the social infrastructure necessary to mediate and respond to the inherent tensions within the
new model has yet to emerge. While this is far from impossible, the creation of such
infrastructure is seen to be especially problematic within LMEs and the renewal of collective
representation (ibid, p. 65) is seen as pivotal:
This account accords strongly with the conclusion of Hillard and McIntyre (cited in Lloyd,
2000, p. 6) that ‘without a supportive industrial relations framework in place HPWO [high
performance work organisation] has only succeeded in a limited number of places’.
Developing this theme Bélanger and his colleagues argue that it is only through a renewal in
union strength that the trade-offs, reciprocity in Thompson’s (2003) terms, necessary for
stability are likely to emerge. Unfortunately, however, the wellsprings are not in evidence.
Initiatives such as the government’s partnership programme9 are tentative experimentations
rather than interventions likely to redress the inadequate power resources of organised labour.
In view of the secular decline in trade union fortunes10, allied to the limited appetite for
significant state intervention, the ultimate message derived here is that the UK’s
transformation to a high performance economy is based on shaky foundations.

Page 39
 Chapter - 6
RESEARCH
METHODOLOGY

Page 40
 RESEARCH METHODOLOGY
POPULATION AND SAMPLE
Population:
Sampling unit: Employees of LG
Extent: Moradabad
Sample :
The sample size of the report is 50

RESEARCH APPROACH
Research design is simply the framework or plan for a study, Used guide in collecting and
analyzing data. For the study: for conducting that research I selected the Descriptive
research design.
Descriptive research design: Descriptive research is also called Statistical Research. The
main goal of this type of research is to describe the data and characteristics about what is
being studied. The idea behind this type of research is to study frequencies, averages, and
other statistical calculations. Although this research is highly accurate, it does not gather the
causes behind a situation. Descriptive research is mainly done when a researcher wants to
gain a better understanding of a topic. that is, analysis of the past as opposed to the future.
Descriptive research is the exploration of the existing certain phenomena. The details of the
facts wont be known. The existing phenomena’s facts are not known to the persons.

RESEARCH FRAMEWORK
Research is common parlance refresh to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific
topic.

In fact, research is an art of scientific investigation. The Advanced Learner’s dictionary of

current English lay down the meaning research as “a careful investigation and inquiry
especially through search for new facts in any branch knowledge”.
Research is an academic activity and as such the term should be used in a technical sense.
According to Clifford woody research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;
making deductions and reaching conclusion; and at last carefully testing the conclusion to
determine whether they fit the formulating hypothesis.

Page 41
 The systematic approach concerning generalization and the formulation of theory is also
research. As such the term “Research” refers to the systematic method consisting of
enunciating the problem, formulating a hypothesis, collecting the facts of data, analyzing the
facts and reaching certain conclusion either in the form of solution towards the concerned
problem or certain in certain generalization for some theoretical formulation.

TYPES OF DATA COLLECTED

Primary data:
The primary data are those which are collected afresh and for the first time, and thus
happened to be original in character. There are several methods of collecting primary data
particularly in surveys.
Questionnaire method is used for collecting the data while conducting the research.

Secondary data:
The secondary data are those which have already been collected by someone and which have
already been passed through the statistical process. Secondary data may either be published
data or un published data. Usually published data are available in :
various publications of central, state, are local government;
technical and trade journals;
books, magazines, and newspapers. The sources of unpublished are many; they may
be found in diaries, letters, private individuals and organizations.
Internet is used for collecting the data while conducting the research

SAMPLING
There are two Method of sampling:
Probability sampling:
It is based on the concept of random selection of a controlled procedure that assures that each
population element is gives a non-zero chance of selection.
Non probability sampling:
Non probability sampling is non-random and subjective i.e. each member does not have a
known non zero chance of being included.
In this report non probability convenience sampling is used to conduct a research.

Page 42
STATISTICAL TOOLS USED
The commonly used methods used for analyzing are percentage methods, pie charts, graphs
etc.
In this project report Pie-Charts and Bar Diagrams are used. A pie chart (or a circle
graph) is circular chart divided into sectors, illustrating proportion. In a pie chart, the arc
length of each sector (and consequently its central angle and area), is proportional to the
quantity it represents. Together, the sectors create a full disk. It is named for its resemblance
to a pie which has been sliced. The circle of pie charts represents 100%. The circle is
subdivided into slices representing data values. The size of each slice shows what part of
100% it represents. Pie charts can be used any time you want to show what percent a
particular item represents of data series.

PROCEDURE OF DATA COLLECTION

It plays an important role in research report. The major and important part lies on data
interpretation. Findings can be interpreted in different ways and discussion between
researchers and managers; it will help to bring about the best interpretation on the basis of
analysis

Page 43
 Chapter - 7
DATA ANALYSIS
&
INTERPRETATION

Page 44
 DATA ANALYSIS & INTERPRETATIONS
1. In your opinion performance appraisal is good in the organization?
No. of
Sr. No. Option Percentage
Respondents
1 Yes 42 84%
2 No 8 16%
Table No. 1

Graph No. 1

INTERPRETATION:
This chart shows that out of 50 employees, 84% employees said that performance appraisal is
good in the organization & 16% employees said no.

Page 45
2. Is performance appraisal system is necessary for the organization?
No. of
Sr. No. Option Percentage
Respondents
1 Yes 48 96%
2 No 2 4%
Table No. 2

Graph No. 2

INTERPRETATION:
This chart shows that out of 50 employees, 96% employees said that performance appraisal
system is necessary for the organization & 4% employees said no.

Page 46
3. Are you satisfied with the transfer and promotion policy of LG?
No. of
Sr. No. Option Percentage
Respondents
1 Yes 28 56%
2 No 22 44%
Table No. 3

Graph No. 3

INTERPRETATION:
This chart shows that out of 50 employees, 56% employees said that they satisfied with the
transfer and promotion policy of LG & 44% employees said no.

Page 47
4. Are you satisfied with the method of performance appraisal running in the organization?
No. of
Sr. No. Option Percentage
Respondents
1 Yes 40 80%
2 No 10 20%
Table No. 4

Graph No. 4

INTERPRETATION:
This chart shows that out of 50 employees, 80% employees said that they satisfied with the
method of performance appraisal running in the organization & 20% employees said no.

Page 48
5. Have you aware of the method adopted for performance appraisal in the organization?
No. of
Sr. No. Option Percentage
Respondents
1 Yes 26 52%
2 No 24 48%
Table No. 5

Graph No. 5

INTERPRETATION:
This chart shows that out of 50 employees, 52% employees said that they are aware of the
method adopted for performance appraisal in the organization & 48% employees said no.

Page 49
6. Do you receive any increment in your salary after performance appraisal?
No. of
Sr. No. Option Percentage
Respondents
1 Yes 24 48%
2 No 26 52%
Table No. 6

Graph No. 6

INTERPRETATION:
This chart shows that out of 50 employees, 48% employees said that they receive increment
in their salary after performance appraisal & 52% employees said no.

Page 50
7. Do you think performance appraisal helps employees to set and achieve meaningful
goals?
No. of
Sr. No. Option Percentage
Respondents
1 Yes 38 76%
2 No 12 24%
Table No. 7

Graph No. 7

INTERPRETATION:
This chart shows that out of 50 employees, 76% employees said that they think that
performance appraisal helps employees to set and achieve meaningful goals & 24%
employees said no.

Page 51
8. Do you think performance appraisal improves motivation and job satisfaction?
No. of
Sr. No. Option Percentage
Respondents
1 Yes 41 82%
2 No 9 18%
Table No. 8

Graph No. 8

INTERPRETATION:
This chart shows that out of 50 employees, 82% employees said that they think that
performance appraisal improves motivation and job satisfaction & 18% employees said no.

Page 52
9. Do you think performance appraisal helps to improve behaviour of yours towards the
organization?
No. of
Sr. No. Option Percentage
Respondents
1 Yes 44 88%
2 No 6 12%
Table No. 9

Graph No. 9

INTERPRETATION:
This chart shows that out of 50 employees, 88% employees said that they think that
performance appraisal helps to improve behaviour of theirs towards the organization & 12%
employees said no.

Page 53
10. Is there any employee is awarded with their better performance after performance
appraisal?
No. of
Sr. No. Option Percentage
Respondents
1 Yes 45 90%
2 No 5 10%
Table No. 10

Graph No. 10

INTERPRETATION:
This chart shows that out of 50 employees, 90% employees said that they awarded with their
better performance after performance appraisal & 10% employees said no.

Page 54
11. Do you think that performance of employees improve after process of performance
appraisal?
No. of
Sr. No. Option Percentage
Respondents
1 Yes 40 80%
2 No 10 20%
Table No. 11

Graph No. 11

INTERPRETATION:
This chart shows that out of 50 employees, 80% employees said that they think that that
performance of employees improve after process of performance appraisal & 20% employees
said no.

Page 55
12. Do you think performance appraisal helps to change behaviour of employees?
No. of
Sr. No. Option Percentage
Respondents
1 Yes 45 45%
2 No 5 10%
Table No. 12

Graph No. 12

INTERPRETATION:
This chart shows that out of 50 employees, 90% employees said that they think that
performance appraisal helps to change behaviour of employees & 10% employees said no.

Page 56
13. Do you think performance appraisal give constructive criticism in a friendly and positive
manner?
No. of
Sr. No. Option Percentage
Respondents
1 Yes 44 88%
2 No 6 12%
Table No. 13

Graph No. 13

INTERPRETATION:
This chart shows that out of 50 employees, 88% employees said that they think that
performance appraisal give constructive criticism in a friendly and positive manner & 12%
employees said no.

Page 57
14. Do you think that performance appraisal help to provide an atmosphere where all are
encouraged to share one another burden?
No. of
Sr. No. Option Percentage
Respondents
1 Yes 46 92%
2 No 4 8%
Table No. 14

Graph No. 14

INTERPRETATION:
This chart shows that out of 50 employees, 92% employees said that they think that
performance appraisal help to provide an atmosphere where all are encouraged to share one
another burden & 8% employees said no.

Page 58
15. Do you think performance appraisal is important in every organization.
No. of
Sr. No. Option Percentage
Respondents
1 Yes 49 98%
2 No 2 4%
Table No. 15

Graph No. 15

INTERPRETATION:
This chart shows that out of 50 employees, 98% employees said that they think that
performance appraisal is important in every organization & 2% employees said no

Page 59
 Chapter - 8
FINDINGS OF
THE STUDY

Page 60
 FINDINGS OF THE STUDY
 Majority of the employees said that performance appraisal is good in the organization
& some employees said no.

 Majority of the employees said that performance appraisal system is necessary for the
organization & some employees said no.

 Most of the employees said that they satisfied with the transfer and promotion policy
of LG & some employees said no.

 Most of the employees said that they satisfied with the method of performance
appraisal running in the organization & some employees said no.

 Most of the employees said that they are aware of the method adopted for
performance appraisal in the organization & some employees said no.

 Most of the employees said that they receive increment in their salary after
performance appraisal & some employees said no.

 Most of the employees said that they think that performance appraisal helps
employees to set and achieve meaningful goals & some employees said no.

 Most of the employees said that they think that performance appraisal improves
motivation and job satisfaction & some employees said no.

 Most of the employees said that they think that performance appraisal helps to
improve behaviour of theirs towards the organization & some employees said no.

 Most of the employees said that they awarded with their better performance after
performance appraisal & some employees said no.

 Most of the employees said that they think that that performance of employees
improve after process of performance appraisal & some employees said no.

 Most of the employees said that they think that performance appraisal helps to change
behaviour of employees & some employees said no.

 Most of the employees said that they think that performance appraisal give
constructive criticism in a friendly and positive manner & some employees said no.

Page 61
 Most of the employees said that they think that performance appraisal help to provide
an atmosphere where all are encouraged to share one another burden & some
employees said no.

 Most of the employees said that they think that performance appraisal is important in
every organization & some employees said no

Page 62
 Chapter - 9
CONCLUSION

Page 63
 CONCLUSION
In the new millennium when the corporate world is designing newer techniques for
developing employees and retaining them, LG is no way behind and the organizational
structure is such that people works hand in hand to align the organizational goals with the
individuals’ goals.
Evaluation of employees’ performance is helpful as to strengthen the employees’ productivity,
their promotion, transfer, Performance Appraisal needs etc. The organization has
implemented the evaluation process not only to evaluate the performance of employees but
also for their increment and promotion. The company follows a transparent performance
appraisal system with no personal bias because it is wholly based on individuals’ contribution
towards the organization. But there are some loopholes in the system that should be analyzed
and corrective measures should be taken.
To sum it up, this project has provided me with opportunities to learn different areas of the
HR function and has given me stepping-stones to climb up to reach the summit of HR at the
end of my career.

 Currently annual appraisal system in LG is carried out for the employees at executive
levels and above only. The target set may be reviewed quarterly so that strengths and
weaknesses, if any, can be assesses and remedial measures suggested accordingly.
 Considerable amount of time is spent for getting the appraisals done as per the
existing system. The company should improve the existing system by designing and
implementing departmental performance review system on a quarterly basis.

 Any company should give feedback to the employees periodically. They can also
extend proper diagnostic tips/ counseling methods at the required level.

 Currently the company’s existing appraisal system is on annual basis. This may be
reviewed on a quarterly basis, which will help in assessing the strengths and
weaknesses of executives and role modifications can be suggested accordingly.

 For the further progress of company’s mission and goals organizational planning and
development department should be involved for quarterly analysis of the feedback
received.

 Apart from the merits awarded based on the performance indicators, HR should
introduce system for proper recognition rewards to such employees.

Page 64
 LG can also concentrate on designing and implementing proper in-house counseling
program through group discussions/ personal interaction.

 For the progress of the company the performance appraisal of the top-level
management are also to be carried on a quarterly basis. Competency skills are to be
assessed and effective role modification areas are to be suggested.

Page 65
 Chapter - 10
SUGGESTIONS AND
RECOMMENDATIONS

Page 66
 SUGGESTIONS AND RECOMMENDATIONS
 In order to have a better liaison within the co-workers and their superiors the company
should have a well-planned communication system and employees’ views should be
taken into consideration.

 While working under pressure the employee’s performance is affected so it becomes

necessary that the management should try to analyze the strengths and weaknesses of
the employees.

 Teamwork should be assigned to employees, which will be helpful in establishing

leadership qualities and also becoming aware of other’s problems.

 Employees should be given proper Performance Appraisal programs to learn new

concepts and technologies as to expand their capabilities, knowledge, skills etc.

Page 67
 Chapter - 11
LIMITATIONS OF
THE STUDY

Page 68
 LIMITATIONS OF THE STUDY
Although the study was carried out with extreme enthusiasm and careful planning there are
several limitations, which handicapped the research viz,

1. Time Constraints: The time stipulated for the project to be completed is less and thus
there are chances that some information might have been left out, however due care is taken
to include all the relevant information needed.
2. Sample size: Due to time constraints the sample size was relatively small and would
definitely have been more representative if I had collected information from more
respondents.
3. Accuracy: It is difficult to know if all the respondents gave accurate information; some
respondents tend to give misleading information.
4. Availability: It was difficult to find respondents as they were busy in their schedule, and
collection of data was very difficult

Page 69
BIBLIOGRAPHY

Page 70
 BIBLIOGRAPHY
Books
 Aswathappa, K, “Human Resource and Personnel Management”, Tata McGraw-
Hill Publication Pvt. Limited,3rd edition,2010.
 Dessler, “Human Resource Management”, Prentice-Hall, 9th edition, pp. 45-59.
 Hall Calvin S.et al- “Theories of Personality”(Wiley-India Text Books, 4th Ed)
 Kothari C.R., “Research Methodology”- Methods and techniques, new age
international publishers, 2007, 2nd edition, pp. 26, 95, 111.

Websites

 http//:performanceappraisal.com
 www.wikkipedia.com
 www.lg.com/in

Page 71
ANNEXURE

Page 72
 QUESTIONNAIRE

Dear respondent,

I am the student of IMS, Ghaziabad conducting a research report on

“PERFORMANCE APPRAISAL AT LG”. Kindly spare few minutes to fill up this
questionnaire. Any information provided by you will be used for academic purpose only.
RESPONDENT PROFILE
 Name of the respondent :................................................................................................
 Residential/ office address :............................................................................................
........................................................................................................................................
 Contact no. :..................................................................................................................
 Age group of the respondent : 18-25 ( ) 25-35 ( ) 35-45 ( ) 45 or More( )
 Education/ qualification: .............................................................................................
 Occupation :.................................................................................................................

1. In your opinion performance appraisal is good in the organization?

• Yes
• No

2. Is performance appraisal system is necessary for the organization?

• Yes
• No

3. Are you satisfied with the transfer and promotion policy of LG?
• Yes
• No

4. Are you satisfied with the method of performance appraisal running in the organization?
• Yes
• No

5. Have you aware of the method adopted for performance appraisal in the organization?
• Yes
• No

6. Do you receive any increment in your salary after performance appraisal?

• Yes
• No
7. Do you think performance appraisal helps employees to set and achieve meaningful
goals?
• Yes
• No

8. Do you think performance appraisal improves motivation and job satisfaction?

• Yes
• No
9. Do you think performance appraisal helps to improve behaviour of yours towards the
organization?

Page 73
 • Yes
• No

10. Is there any employee is awarded with their better performance after performance
appraisal?
• Yes
• No

11. Do you think that performance of employees improve after process of performance
appraisal?
• Yes
• No

12. Do you think performance appraisal helps to change behaviour of employees?

• Yes
• No

13. Do you think performance appraisal give constructive criticism in a friendly and positive
manner?
• Yes
• No

14. Do you think that performance appraisal help to provide an atmosphere where all are
encouraged to share one another burden?
• Yes
• No

15. Do you think performance appraisal is important in every organization?

• Yes
• No

Signature

Page 74