A Study on Performance Appraisal System in Summer

L.M.S.GANI MOHAMED & COMPANY Project

Report

Submitted in partial fulfillment of the requirements for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted By
SANJEEDA
REG NO: MA90599
Under the guidance of
MR. SATYANARAYANAN

NEW COLLEGE INSTITUTE OF MANAGEMENT

(Affiliated to University of Madras)
#87, Peters road, Royapettah,
Chennai - 600 014.

NEW COLLEGE INSTITUTE OF

MANAGEMENT

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 NEW COLLEGE INSTITUTE OF MANAGEMENT
(Affiliated to University of Madras)
#87, Peters road, Royapettah, Chennai - 600 014.
April-2010

BONAFIDE CERTIFICATE

This to certify that the project work entitled “A STUDY ON PERFORMANCE

APPRASIAL SYSTEM L.M.S.GANI MOHAMED & CO” is a bonafide work done by
SANJEEDA in partial fulfillment of the requirement for the award of Master of Business
Administration by Madras University during the academic year 2009-2011.

GUIDE HEAD OF THE

DEPARTMENT

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 DECLARATION

I, SANJEEDA (Reg. no: MA90599) Bonafide student of Business Studies, New

College Institute of Management, affiliated to University of Madras hereby declare that
Project entitled “A STUDY ON PERFORMANCE APPRAISAL SYSTEM” was
prepared towards the partial fulfillment of Master of Business Administration (M.B.A)
final year Degree course from the University of Madras. The report was prepared by my
own effort and it has not been produced earlier towards the award of any other degree or
diploma from the same university.

PLACE : Signature
DATE :
(SANJEEDA)

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 ACKNOWLEDGEMENT
First and foremost, I am very thankful to the Lord Almighty for having best owned
upon his grace, without which I would not have got the strength to complete my course.
I express my gratitude to, Mr. BALASUBRAMANIYAN Director New College
Institute of Management.
My special thanks to my college Principal Dr. C KALEEMULLAH for extending
me moral support during the course of this work
It is a very great pleasure to thank my internal guide,
Mr.SATYANARAYANAN for his valuable suggestion, encouragement &
unceasing help rendered to me. It has been an honor & pleasure to work under him.
I also express my gratitude & respect to all faculty members of Department of
Management Studies for having encouraged me throughout the training & preparation of
the report.
I wish to place my performed gratitude & indebtness to Mr. G.M.SHEIK
Managing Director, of L.M.S.GANI MOHAMED & CO CHENNAI for granting me to
undergo my training at this prestigious company.
I thank my external guide Mr. V.RAJA MOHAN Asst manager HR Dept
L.M.S.GANI MOHAMED & CO for his immerse help and support rendered on me
during my project. I also express my gratitude & respect to all the staff members of
L.M.S.GANI MOHAMED & CO CHENNAI.

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 CONTENT

CHAPTER 1

1.1 Introduction
1.2 Objectives of the study
1.3 Scope of the study
1.4 Limitation of the study
1.5 Research Methodology
1.6 Operational definition of the concept
1.7 Learning’s in the Executive training
1.8 Awards/ Rewards received during the E.T

CHAPTER 2

2.1 Company Profile

CHAPTER 3

3.1 Human Resource Development (Performance Appraisal)

3.2 Bell Shaped Curve

CHAPTER 4

4.1 Data Analysis

4.2 Interpretations and findings
4.3 Suggestions
4.4 Recommendations
4.4 Conclusions
4.5 Bibliography
4.6 Questionnaires

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 CHAPTER I

INTRODUCTION

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 In the so highly competitive and rapidly changing environment to
survive the companies need well trained and skilled worker. India is a
very rich country in the term of resources, weather natural or technical
and scientific .But it is very sad to state that India, till now, has not
perfectly learnt how to develop its man power and tap its human
resources for the betterment of its citizenry and business goal.

For summer training I got an opportunity to do my summer

training in L.M.S GANI MOHAMED & CO because it is one of the
biggest, well established and renowned in its field and serious about
training its worker and intent to make it understood that they really
care for them.

OBJECTIVES OF STUDY
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● To understand the Performance Appraisal activities of L.M.S. GANI
MOHAMED & CO.
● To find out if the Performance Appraisal activities help the employee
in his performance.
● Take the response of employees towards the Performance Appraisal
activities carried on upon them.

SCOPE OF THE STUDY

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The topic chosen Performance appraisal was aimed for the betterment
of the organization in terms of quality as well as quantity. The scope of
the study under mentioned points depicts the same.

1. To increase the productivity by increasing the level of performance.

2. The programme would help the organization in meeting it future
personal need.
3. The programme will help the employee in their personal group by
improving their knowledge as well as skill.

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LIMITATIONS OF THE STUDY

1. Lack of expertise trainer handed in the prosecution of Performance

Appraisal programme.
2. Lack of feeling in people of against the awareness for the
Performance Appraisal programme.
3. Search for the exact Appraisal was also difficult to define.
4. The employees are very busy in their work. So it is not possible to
set at complete information from them.

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 RESEARCH METHODOLOGY
RESEARCH METHODOLOGY

Research methodology helps in solving the research problem i.e. it is a

way of systematically solve the research problem. It may be understood as a science of
studying how research is done scientifically. It contains various steps that are generally
adopting by a researcher in studying his research problem along with the logic being
them.

Research Method Adopted

Descriptive research has been adopted for this study. Descriptive research
includes survey and fact-findings by consulting the respondents through questionnaire in
a direct interview.
Descriptive research design is used to find suggestions for the research
problems. It is rigid and formal. Descriptive study provides clear specification of who,
what, where, why and show respects of the research. It includes also the involved more
specific hypothesis and testing of them through statistical inference technique.

Data Collection Method

Most of the study is based on the primary data. The primary data refers to
fresh data collected for the study by the researcher with own personal effort. The needed
primary data is collected through survey method by the way of questionnaire. The
secondary data has been collected through the various records, documents and others.

Research Instrument

A questionnaire is a format list of questions to be answered in the survey.

A structured questionnaire is the research instrument. Likert type scale are developed by

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utilizing the item analysis approach where in a particular items is evaluated on the basis
of how well it discriminates between those persons whose total score is high and those
whose score is low.

Sampling Design

The survey adopted was area sampling. Area sampling design constitutes
geographical clusters. Area sampling is less expensive than most other probability
sampling designs, and it is not dependent on a population frame. It is useful for decisions
relating to particular location.

Sample Size

The sample size is of 50 employees, from L.M.S.GANI MOHAMED & CO.

STATISTICAL TOOLS TO BE USED FOR ANALYSIS

PERCENTAGE METHOD

Percentage refers to a special kind of ration. Percentages are used in

making comparison between two or more series of data. They are used to describe

relationship. Moreover percentage can also be sued to compare the relative turns, the

distributors of two or more series of data.

No. of respondents
Percentage of respondents = -----------------------------x 100
Total respondents

CHART

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 Column Chart

Pie Chart

OPERATIONAL DEFINITION OF THE

CONCEPT
PERFORMANCE APPRAISAL SYSTEM

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Performance appraisal is a process of evaluating employee
performance for the
Purpose of placements, selections for promotions, career planning,
financial rewards, motivation etc, and performance appraisal seeks to
achieve following objective.

● To assess the performance, personal attributes and potential of the

employee.
● Performance based rewards in terms of promotion, increments etc.
● To identify training needs.
● To assess strengths, areas of improvements and give feedback to
the employee.

PERFORMANCE APPRAISAL PROCESS

1. HR to prepare the Appraisal Form of individual employee to be

appraised and send it to concerned Reviewing Officer/HOD.

2. Reviewing Authority/HOD will arranged distribution of form to

individual employee
Through Appraising Officer/S.H.

3. Employee shall fill his part in the Appraisal form in the appraisal
form and shall hand over the same to Reviewing Officer/S.H.

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15
 CHAPTER II

COMPANY PROFILE
L.M.S Gani Mohamed &CO.,
Chennai, Tamil Nadu, India

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Leather Products - Manufacturer, Export / Import,
Proprietorship Firm Since 1980
India based L.M.S. Gani Mohamed &CO., is a globally respected name
in the manufacture and export of finished leather and leather shoe
uppers.
L.M.S. Gani Mohamed & CO. was founded in the early 1980 by Mr.
G.M.Sheik with a dream to mature into a leading player in the Indian
leather industry. From a humble beginning the company has really
grown from strength to strength to emerge as a part a core group that
commands a respectable turnover.
The company has bloomed from its infancy to the repute of today in
the industry, thanks to the superlative guidance from Mr. G.M.Sheik
who has more than 25 years of experience in the industry. This
company is a globally recognized name in the manufacture and export.
The company caters to the demands of the full chrome goat suede
market. A history of supplying to the leading companies will justify our
claims to excellence.
With forays into discerning overseas markets in Italy, Germany,
France ,Australia ,Honk Kong ,USA and Spain we have successfully
lived up to the expectations of the global buyers who accept nothing
but the best. Farida Leather has established a strong network of supply
chain for sourcing of Finished Leather, Leather Shoes and Leather Shoe
Uppers of international renown.
This company has 2 tanneries in Ranipet and 1 shoe unit in Thiruvallam
that all equipped with all the needed machineries and imported
technology for working towards one goal untidily: QUALITY
Products:
Manufacturers and Exporters of Finished Leather, Leather Shoes,
Leather Garments and Leather Shoe Uppers. Finished Leathers:- Full
chrome goat Glazed Kid , Full chrome Nappa Kid, Full chrome Velvet
Kid Full chrome Kashi Kid, Full chrome Metallic Kid, Full chrome Foil Kid,
Full chrome Glazed Milled, Full chrome Shoe Suede, Semi chrome
Glazed Kid, Semi chrome Glazed Milled, Semi chrome Shoe Suede,
Garment Leathers:- Full chrome Goat Garment Suede, Full chrome
Nappalan, Full chrome Nappa, Full chrome Garment Article, Full
chrome Sheep Nappa, Semi chrome Goat Garment Suede

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 CHAPTER III

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 HUMAN RESOURCE DEVELOPMENT

Performance appraisal

Company considers its human resources as the most valuable

resources for its growth & development. Performance appraisal seeks
to achieve the following.

1. To set realistic & challenging targets/ key performance area on

annual basis for the individual.
2. To assess employee’s performance based on person attributes. Job
performed targets achieved/ specific achievements.
3. To assess the strengths, weakness& potential of the employee.
4. Performance based reward in terms of increment& promotion etc.

Appraisal period

Appraisal period is from April to March. Every employee is

appraised at the end of the Appraisal period. Employees joining during
appraisal are appraised on completion of their one year service&
employees joining after March are appraised in next appraisal.

Method of appraisal

The employee’s performance is appraised by the

department & sectional head in consultation with his immediate

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supervisor on personal attributes, job performed targets achieved/
specific achievement. Finally the appraisal is reviewed & approved by
the review committee to ensure uniformity& objective.

Appraisal feedback

1. The appraisal is being discussed with the employee by the appraisee

to.
2. Feed back about his performance, strength& weakness employee is
also suggested area of consolidation& improvement.

Employee’s co-operation

The appraisal system requires active because its

effectiveness depends on realistic self assessment & positive approach
towards the feedback.

Training & development

Training & development is an important aspect of the

H.R.D. The company believes in training & development of its
employees. To take higher responsibility and to meet the challenges of
the individual employee is assessed by his sectional & departmental
head in consolation with employee. In our & outstation programs are
arranged for employees by H.R.D. on recommendation of sectional &
departmental head.

PERFORMANCE APPRAISAL SYSTEM

Performance appraisal is a process of evaluating employee
performance for the purpose of placements, selections for promotions,

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career planning, financial rewards, motivation etc, and performance
appraisal seeks to achieve following objective.

● To assess the performance, personal attributes and potential of the

employee.
● Performance based rewards in terms of promotion, increments etc.
● To identify training needs.
● To assess strengths, areas of improvements and give feedback to
the employee.

INDIVIDUAL COMPONENTS DEFINED

ATTRIBUTES
There are seven specific and major attributes that
have been broken into sub components against which ratings to be
provided. The various attributes are explained.

WORK PLANNING

● ABILITY TO PLAN

● ORGANISE

● EXECUTE

● MEET DEADLINES

● INTEGRITY

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● RESPONSIBILITY

COMMUNICATION

● ARTICULATING

● PERSUASION

● SUPPORT

● CONFIDENCE

CONCEPTUAL DEPTH

● VISION

● LONG RANGE PLANNING

● VERSATILITY

● CREATIVITY AND INNOVATION

OVERALL BUISNESS APPROACH

● TECHNICAL BASIS appreciates the technical up gradations and the technological

applications in the organization.
● FINANCIAL KNOWLEDGE has been appreciated of the financial ratios and
instruments.

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● STRATEGIC PRIORITIES has appreciation of situations and strategies based on those
situations

● CONSUMER DRIVEN has a customer friendly approach to both internal and external
customer.

AREAS OF STRENGTH

As a part of the performance review discussions, the appraisee, section Head and HOD
should individually list out three most important strengths in the appraisee, in order to
utilize the same optimally and develop it for future productivity.

AREAS OF IMPROVEMENT

The appraise, section Head and the HOD should individually list out three most important
areas requiring improvement, of the appraise. This will develop the employee in
identifying his own development needs and make suitable learning processes to overcome
these areas.

KEY TRAINING AND DEVELOPMENT

The appraisee, Section HEAD and the HOD should individually list out important
training needs of the appraisee for him to impart his specific functions of his job
effectively and in the manner that generates optimum output.
This section of form can also help the Departmental Heads and the HR Manager to plan a
training calendar for the employee and effectively conduct the same.

RATINGS

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Ratings in the terms are to be awarded to the individual, by his immediate superior and
the departmental head in the specific columns. The points are given as:

OUTSTANDING (OS)

COMMENDABLE (CO)

MEET EXPECTATIONS (ME)

NEEDS IMPROVEMENT (NI)

UNSATISFACTORY (US)

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Scale Rating Standard Actual

0.05 OS 3 2
0.2 CO 12 15
0.5 ME 31 29
0.15 NI 9 11
0.1 US 6 4
61 61

piu stores

Standard Actual

35
30 31
29
25
numbers

20
15
15
12
10 11

5 3 A 9 6
2 4
0 PROJECT REPORT
OS CO ME NI US
ratings
O

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 MULTIPLE PURPOSES OF PERFORMANCE APPRAISAL

General applications Specific purpose

Identification of individual needs.

Performance feedback.
Developmental uses Determining transfers and job assignment.
Identification of individual strengths and
developmental needs.

Salary
Promotion
Retention and termination
Administration uses
Reorganization of individual performance.
Lay off
Identification of poor performance

HR planning determining training need

Organizational Evaluation of goal achievement
maintenance/objective Information of goal identification
evaluation of HR system

criteria for evaluation research

Documentation Documentation for HR decision
helping to meet legal requirement

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 ISSUES IN APPRAISAL PROGRAMMES

Formal v/s
informal

Whose
What methods
performance

When to Appraisal Who are the

evaluate design partners

What to
What problems
evaluate

How to solve

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 PERFORMANCE APPRAISAL SYSTEM

Performance appraisal system in any organization depends substantially on five factors –

concept, criteria, context, culture and contingency.

Concept: - The performance dimensions are several. They include duties,

responsibilities, behavior and traits. Performance appraisal involves at least two
persons/parties: the appraiser (who does the appraisal) and the appraise (Whose
performance is being appraised).

Appraise expect Appraiser should

● To know what his duties and ● Prepare job descriptions

Responsibilities are

● To know what is expected of ● Facilitate appraisee to set

him and whether the expectations goals/targets
are reasonable enough

● to know how he is doing ● Analyze results with appraisee

● To have appraiser’s help, if needed ● Advice, guide, coach & counsel

● Rewards to be commensurate with ● Reward for good results

Performance

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Criteria: - Several performance measures such as output, quality, punctuality, cost
control contribution, job knowledge, discretion, initiative, team work, resourcefulness
honestly, and leadership qualities are usually reckoned as some of the criteria against
which performance is assessed.

Context: - The top management philosophy values and belief system in the
organization influence the notions about people in the organizations and the type of
control, motivation and communication systems.

Culture: - The cultures of people in general seem to affect appraisal system. Studies
and commentaries on Indian organizations seem to point to a pattern where the loyalties
of employees are more to the people than to the tasks or to organizations.

Contingency: - There is a systematic effort to link performance appraisal to other sub-

systems of human resource management such that all personnel decisions use the
performance appraisal data as a critical input, it becomes difficult to impart seriousness in
to the system. The result would be apathy on the point of both the appraiser and the
appraisee to the entire process.

Methods of appraisal-

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

determine method(s) of evaluation. All the approaches to appraisal can be classified
into:-

(i) past-oriented methods

(ii) future oriented methods

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 Rating Scale
Cost accounting Checklists

Essay Forced
Choice
Appraisal
Tests and methods Forced
Observation distribution

Field review critical incident

BARS

Appraisal Techniques

Different techniques are used for performance appraisal.

They include:-

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 Methods

Future oriented

Appraisal by objectives Management by objectives

Trait Appraisal
Rating Scales &Ranking Technique 360° Performance appraisal
Simple or straight Ranking
Forced distribution Ranking Psychological appraisals
Paired comparison
The critically incident method Assessment Centers

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PAST ORIENTED APPRAISALS

Appraisal by objectives: - The objectives for the evaluation period (usually 12 months)
are determined through joint discussion and negotiation between the superior and
subordinate. This system is followed even in organization which does not have a formal
programme of ‘Management by Objectives’. Invariably, in many organizations where the
objectives are predetermined, Key performance Areas (KPAs) or Key Result Areas
(KRAs) are also decided in advance through joint effort.

Confidential Report: - A confidential report is a report on the subordinate by the

immediate superior and covers a limited range of aspects like the candidate’s strengths,
weakness, major achievements or failures and information on some personality traits and
behavior aspects. The confidential report system is usually a descriptive one and permits
a lot of subjectivity.

Trait Appraisal: - Commonly used individual traits include several distinguishing

characteristics firmly anchored in human behavior that manifest themselves on the job
and influence performance. These characteristics include the following listed below.

Ability for sustained hard work Drive

Acceptance of responsibility Effort
Adaptability Efficiency
Analytical ability Honesty
Appearance Industriousness
Attendance Initiative
Attitude towards criticism Integrity
Capacity to train Intelligence
Commitment to task Judgment
Communication Leadership
Conduct Loyalty
Confidence Motivation

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Rating Scales :- These are techniques where performance is measured through assigning
numbers (0 to 4, 1 to 5 or 1 to 9), (A to D or E) or words which are descriptive adjectives
(e.g., outstanding, very good, good, fair, poor) to items or events to describe differences.

In all rating scales, most organizations are finding it useful to have an extra column ot
record N.A. (not applicable) or N.O.
(Not observed) or any other comment as appropriate.

Ranking Technique: - Ranking techniques encourage superior or peers to rank-order all

their subordinates or peers as the case may be. This is a form of comparative
measurement.

Simple or straight Ranking: - This technique provides for an ordinal scoring; first,
second, third and so on.

Forced Distribution Ranking: - This is ranking technique where raters are required to
allocate a certain percentage of rates to certain categories (e.g., superior, above average,
etc.) or percentiles (e.g. Top 10%, Bottom 20% etc.) Both the number of categories and
percentage of employees to be allotted to each category are a function of the performance
appraisal design and format.

Paired Comparison: - This technique requires the rater to appraise which of the two
employees is superior, instead of having to rank order all the employees in the same work
unit doing the same job. This is widely used when one is comparing a small number of
people.

Narrative or Descriptive Methods: - The ongoing search for newer and better
techniques of appraising employee’s performance led to several descriptive methods.
These include the essay and the critical incident methods among others.

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The Essay method :- In this method, the rater describes the rate in terms of several broad
categories such as the person’s strengths and weakness, major achievements and failures,
potential training and development needs and overall performance of the rater.

The Critical Incident method: - This method requires the rater to maintain a record of
major observations of what he feels are work behaviors critical to the difference between
success and failure. It provides information based on systematic observation of actual job
performance.

Behaviorally Anchored Rating Scales (BARS):- These are descriptions of various

degrees of behavior relating to an aspect of performance dimension. The behaviors are
described for a set of intervals ranging from the most negative to most positive.

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FUTURE ORIENTED APPRAISALS

Management by objectives: - It was peter F. Drucker who first gave the concept of
MBO to the world way back in 1954 when his The Practice of Management was first
published.
Application of MBO in the field of performance appraisal is a recent thinking.

MBO works can be described in four steps:-

1. To establish the goals for each subordinate that he has to attain.

2. Involves setting the performance standard for the subordinates in a previously
arranged time period.
3. The actual level of goal attainment is compared with goals agreed upon.
4. Establishing new goals and, possibly, new strategies for goals not previously
attained.

Psychological Appraisals: - Large organization employs full-time industrial

psychologists. When psychologists are used for evaluations, they assess an individual’s
future potential and not past performance. The appraisal normally consists of in-depth
interviews, psychological tests, discussions with supervisions and a review of other
evaluations. The psychologist then writes an evaluation of the employee’s intellectual,
emotional, motivational and other work-related characteristics that suggest individual
potential and may predict future performance. From these evaluations, placement and
development decisions may be made to shape the person’s career.

Assessment Centre’s:- An assessment Centre is a central location where managers may

come together to have their participation in job related exercises evaluated by trained
observers. The principal idea is to evaluate managers over a period of time, say one to
three days, by observing (and later evaluating) their behavior across a series of selected
exercises or work samples.

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360° Performance appraisal:
The appraiser may be any person who has thorough knowledge about the job content,
contents to be appraised, standards of contents, and ethos deserves the employee while
performing a job. The appraiser should be capable of determining what is more important
and what is relatively less important. He should prepare reports and make judgment
without bias.

Typical appraisers are:

 Supervisors
 Peers
 Subordinates
 Employees
 Users of services and consultants.
Performance appraisal by all these parties is called “360°” performance appraisal.”

Supervisors:

Supervisors include superiors of the employee, other supervisors having knowledge about
the work of the employee and department head or manager. General practice is that
immediate superiors appraise the performance, which in turn is reviewed by the
departmental head or manager.

This is because supervisors are responsible for managing their subordinates and they have
the opportunity to observe, direct and control the subordinate continuously. Moreover,
they are accountable for the successful performance of their subordinates. Sometimes
other supervisors, who have close contact with employee work also, appraise with a view
to provide additional information.

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 On the negative side, immediate supervisors may emphasize certain aspects of
employee performance to neglect others. Also, managers have been known to manipulate
evaluations to justify their decisions on pay increases and promotions. However, the
immediate supervisor will continue to evaluate employee performance till a better
alternative is available. Organizations no doubt, will seek alternatives because of the
weaknesses mentioned above and a desire to broaden the perspective of the appraisal.

Peers:

Peer appraisal may be reliable if the work group is stable over a reasonably long period of
time and performance tasks that require interaction. However little research has been
conducted to determine peers establish standards for evaluating others or the overall
effect of peer appraisal on the group’s attitude. Whatever research was done on this topic
was mostly done on military personnel at the management or pre-management
level(officers or officer candidates) rather than on employees in business organizations.
More often in business organizations if employees were to be evaluated by their own
peers, the whole exercise may degenerate into a popularity contest, paving the way for the
improvement of work relationship.

Subordinates:

The concept of having superiors rated by subordinates is being used in most organizations
today, especially in developed countries. Such a novel method can be useful in other
organizational settings where the relationship between superiors and subordinates are
cordial. Subordinates rating in such cases can be quite useful in identifying component
superiors. The rating in such cases can be quite useful in identifying component
superiors. The rating of leaders by combat soldiers is an example. However, the fear of
reprisal often compels a subordinate to be dishonest in his ratings. Though useful in
universities and research institutions, this approach may not gain acceptance in traditional
organizations where subordinates practically do not enjoy much discretion.

37
Self Appraisal:

If individuals understand the objectives they are expected to achieve and standards by
which they are to be evaluated, they are to great extent in the best position to appraise
their own performance may become highly motivated.

Users of services customers:

Employee performance in service organizations relating to behaviors promptness, speed

in doing the job and accuracy, can be better judged by the customers or users of services.
For example, teacher’s performance is better judged by student and the performance of a
conductor in passenger road transport is better judged by passengers.

Consultants:

Some consultants may be engaged for appraisal when employee or employers do not trust
supervisor appraisal and management does not trust the self-appraisal or peer appraisal or
subordinate appraisal. In this situation, consultants are trained and they observe the
employee at work for sufficiently long time for the purpose of appraisal.

In view of the limitations associated with each and every method discussed above, several
organizations follow a multiple rating system wherein several superiors separately fill out
rating forms on the same subordinates. The results are then tabulated.

DESIGN OF AN EFFECTIVE APPRAISAL SYSTEM

It is useful to focus on aspects such as the following so that the appraisal system can be
effective:

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 1. Appraisal objectives and uses should be specific, clear, relevant, timely, adequate,
open and fair.

2. It should be an ongoing process of managing performances with employee

actively participating and supervisor playing the role of coach and developer.

3. The information generated should be tailored to the needs of the organization,

performance requirements and norms of behavior.

4. Recognize individual differences in system design. Identify the needs of rates in

terms of feedback, mobility, Self esteem etc.

5. The overall purpose should be developmental than judgmental. It is important to

separate evaluation of performance and potential.

outcome Attainment
Motivation Ability Performance and job satisfaction
X

IMPLICATIONS FOR PERFORMANCE AND SATISFACTION

Selection Practices:-
• An organization’s selection practices will determine who gets hired.

39
 • If properly designed, it will identify competent candidates and accurately match
them to the job.
• The use of the proper selection device will increase the probability that the right
person will be chosen to fill a slot.

Training and Development Programs:-

Training programs can affect work behavior in two ways.

First Benefit
• The most obvious is by directly improving the skills necessary for the employee
to successfully complete his/ her job.
• An increase in ability improves the employee’s potential to perform at a higher
level.

Second Benefit
• It increases an employee’s self-efficacy.
• Self-efficacy is a person’s expectations that he or she can successfully execute the
behavior required to produce an outcome.

Performance Evaluation:-

A major goal of performance evaluation is to assess accurately an

individual’s performance contribution as a basis for making reward allocation decision.

If the performance evaluation process emphasizes the wrong criteria or

inaccurately appraises actual job performance, employees will be over- or under
rewarded.

This can lead to negative consequences such as reduced effort, increases in

absenteeism, or search for alternative job opportunities.

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Reward Systems:-

If employees perceive that their efforts will be accurately apprised and if they
further perceive that the rewards they value are closely linked to the evaluations, the
organization will have optimized the motivational properties from its evaluation and
reward procedures and policies.

We can conclude that rewards are likely to lead to high employee

performance and satisfaction when they are

(1) Perceived as being equitable by the employee.

(2) Tied to performance and
(3) Tailored to the needs of individual

Union – Management Interface:-

The existence of a union in an organization adds another variable in our
search to explain and predict employee behavior.

The union has been found to be an important contribution to employees’

perceptions, attitudes, and behavior. The informal norms that union cohesiveness fosters
can encourage or discourage high productivity, organizational commitment, and morale.

LEARNINGS IN THE EXECUTIVE TRAINING

41
● INDUCTION
● 5’s (Japanese Technology)
● KRA
● QUALITY CIRCLES
● COMPETANCY MAPPING
● PRACTICAL WORK ON EXCEL

42
CHAPTER IV

43
 DATA ANALYSIS & INTERPRETATION

1. Number of service years in this organization.

Less than 5 5-10 10-15 More

Question
Years Years years than
15
Sample Size 50 42 8 0 0
Employees

0
16 0
Less than 5 Years
5-10 Years
10-15 years
More than 15

84

44
 Fig. 1.01

Findings: The response collected is based on the period of their

service in the organization. As company was set up in 2003 so the
years of service in the organization of most of the employees is less
than 5 years.

45
2. Are you aware about your performance appraisal or any
evaluation done by your superior?

Yes No
Question
Sample Size 50 40 10
Employees

20%

Yes
No

80%

Fig. 1.02

Findings: - 40 % the employees had responded in favor of that they

were aware about performance appraisal.

3. Are you aware about the modern techniques used in

performance appraisal?
46
 Question Yes No

Sample Size 50 30 20
Employees

40

Yes
No

60

Fig. 1.03

Findings: Near about 60% of the employees had not aware about
modern performance appraisal techniques.

47
4. Performance appraisal techniques make you better
eligible for promotion, demotion, & transfer.

Agreed Not agreed

Question
Sample Size 50 40 10
Employees

Fig. 1.4
20

Agreed
Not agreed

80

Fig. 1.04

Findings: The 80% of the respondent’s shows that PARs as a good

strategy to go ahead with promotion while 40% of respondents do not
agree with it.

48
5. Do you think performance appraisal is useful or just a
waste of time?

Question
Useful Waste of time
Sample Size 50 92 8
Employees

Fig. 1.5

Fig. 1.05

Findings: More than 90% of the employees say that performance

appraisal is useful for their self-assessment and promotions. Thus, they
cannot ignore it. And rest of the employees thinks it as a waste of time.

6. Proper and adequate performance appraisal plays a

crucial role in your career development.

Yes No
Question
Sample Size 50 46 4
Employees

49
 8

A gree d
N ot a gre ed

92

Fig. 1.06

Findings: 92% of the responses show that Performance Appraisal

Report helps a lot in the promotional activities

7. Does performance appraisal report is helpful in identifying

Training and Development need or it laid development plan
for you?

Question To a large To some Not at all

extent extent
Sample Size 50 30 15 5
Employees

10

To a large extent
Fig. 1.7
To some extent
50 Not at all
40

50
 Fig. 1.07

Findings: 50% of the respondents are satisfied by the performance

appraisal report as it helps them to understand the job profile and
helps in training need identification.

8. Performance appraisal is most of the time fair and

unbiased.

Agreed Not
Question
agreed
Sample Size 50 42 8
Employees

15

Agreed
Not agreed

51
85
 Fig. 1.08

Findings: 65 % of the respondents show that Performance Appraisal

report is time fair & unbiased.

9. Have you understood clearly, as to what is expecting from

you?

YES No Cant’ say

Question
Sample Size 50 20 11 19
Employees

38 40
YES
No
x
Cant’ say

22

Fig. 1.09

52
Findings: There is a close response from the respondents on
Performance appraisal report where on one hand (near about 40%) say
that it makes feel refreshed & know there better responsibility. On the
other hand some say that it has helped them in improving their skills
not to define their future responsibility and performance.

10. Does the organization provide counseling after

appraisal?

Yes No
Question
Sample Size 50 37 13
Employees

26%

Yes
No

74%

Fig. 1.10

53
Findings: Near about 75% of the respondents, say that Organization
provides counseling after performance appraisal report.

11 Is 3600 technique an effective Performance appraisal

system?

S.No Perception % of response

1 Yes 48
2 No 28
3 Can’t say 24

% of response

60

50

40

30 % of response

20

10

0
Yes No Can’t say

From the above figure we conclude that 48% of the respondents are
aware of the 3600 performance appraisal process.

54
12 Is self appraisal technique of Performance appraisal
system effective?

S.No Perception % of response

1 Yes 76
2 No 24

80
70
60
50
Perception
40
% of response
30
20
10
0
1 2 3

From the figure we conclude that 76% of the respondents say that
self appraisal technique is easier to evaluate performance
assessment process.

55
 13. Do you think Performance appraisal system will
help in improving the effectiveness of the employees

S.No Perception % of response

1 Strongly agree 32
2 Agree 60
3 Disagree 8
4 Neutral 0

% of response

Strongly agree
Agree
Disagree

From the above figure we conclude that 60% of the respondents say
that the performance appraisal system will help them in improving
their effectiveness

FINDINGS

56
1. The response collected is based on the period of their service in the
organization. As company was set up in 2003 so the years of service in
the organization of most of the employees is less than 5 years.

2. 80 % the employees had responded in favor of that they were aware

about performance appraisal.

3. Near about 60% of the employees had not aware about modern
performance appraisal techniques.

4. The 80% of the respondent’s shows that PARs as a good strategy to

go ahead with promotion while 40% of respondents do not agree with
it.

5. More than 90% of the employees say that performance appraisal is

useful for their self-assessment and promotions. Thus, they cannot
ignore it. And rest of the employees thinks it as a waste of time.

6. 92% of the responses show that Performance Appraisal Report helps

a lot in the promotional activities.

7. 50% of the respondents are satisfied by the performance appraisal

report as it helps them to understand the job profile and helps in
training need identification.

8. 65 % of the respondents show that Performance Appraisal report is

time fair & unbiased.

57
9. There is a close response from the respondents on Performance
appraisal report where on one hand (near about 40%) say that it
makes feel refreshed & know there better responsibility. On the other
hand some say that it has helped them in improving their skills not to
define their future responsibility and performance.

10. Near about 75% of the respondents, say that Organization provides
counseling after performance appraisal report.

11. 48% of the respondents are not aware of the 3600 performance
appraisal process.

12. 76% of the respondents say that self appraisal technique is easier to
evaluate performance assessment process.

13. 60% of the respondents say that the performance appraisal system
will help them in improving their effectiveness

RECOMMENDATIONS/ SUGGESTIONS

1. This situation realizes that there were 20% of the employees who
are unaware of the performance appraisal report which will be reduced
by providing them counseling.

58
2. They should have to be aware about the performance appraisal
techniques because they have to pass through it for taking better
promotions & greater responsibility.

3. This shows there negligence towards their career & awareness.

Thus, it can avoid by providing enough information to employee with
the help of training & development exercise.

4. The 20% of respondent’s responses shows that they are not aware
about importance of performance appraisal report. They should be
aware about that how they can take promotion and greater
responsibility through better performance.

5. They have to introduced career development graphs and necessary

skills to reach that position after experiencing some years.

6. Respondents should have to better understand the job responsibility

and training need identification through schedule chart or through the
job analysis.

59
 CONCLUSION
CONCLUSION

It is truth that no work is completed in itself. In fact, completion of one

job is actually the beginning of another job. Likewise, performance
Appraisal is never ending process. It is essential for personal &
professional development.

This project has been considering all possible aspects mentioned in the
project booklet. The project is made very clear and precise with the
help of the relevant data gathered from the company, company
website & through various annexure.

In the concluding remark of my project report, I would like to state that

at L.M.S.GANI MOHAMED & CO, the employees are considered as most
valuable assets & strength for sustained growth & development of the
company.

They believe in investing continuously in human resource for their

growth. The company is led by young professionals. They have an open
work environment which is achievement oriented.

In spite of these merits, there are some demerits also in the company
that the goals of the company are not decided in advance and no
feedback fixed for workers and executives in L.M.S.GANI MOHAMED &
CO

60
 BIBLOGRAPHY
BIBLOGRAPHY
1) Human Resource Management
By K. Aswathapa
2) Human Resource Management
By L. M. Prasad
3) Human Resource Management
By S. K. Gupta
4) Human Resource Management
By Robbinson
5) Human Resource Management
By C. B. Gupta
6) Human Resource Management
By C. V. Memoria
7) Human Resource Management
By R. Sharma
8) Human Resource Management
By B. Ghosh

QUESTIONARE
Performance Appraisal Questionnaire

61
 L.M.S.GANI MOHAMED & CO
APPENDICES
Name:
Désignation/Post:
Salary Grade:
Qualification:
Experience:

(1) No. of years of service in the organization:

(a) Less than 5 (b) 5-10

(c) 10-15 (d) More than 15

(2) Do you aware about your performance appraisal or any evaluation

done by your superior.

(a) Yes (b) No

(3)Are your aware about the modern techniques used in your

performance appraisal?
(a) Yes (b) No

(4)Performance appraisal techniques make you better eligible for

promotion, demotion, & transfer.

(a) Agreed ( ) (b) Not Agreed ( )

(5)Do you think performance appraisal is useful or just a waste of time?

(a) Useful ( ) (b) waste of time ( )

(6)Proper and adequate performance appraisal plays a crucial role in

your career development.

(a)Agreed ( ) (b) Not Agreed ( )

(7)Does performance appraisal report is helpful in identifying training &

development need or it laid career development plan for you?

(a) To a large extent (b) To some extent (c) Not at all

(8)Performance appraisal is most of the time fair and unbiased.

62
 (a)Agreed ( ) (b) Not Agreed ( )

(9)Have you understood clearly, as to what is expecting from you?

(a) Yes (b) No

(10)Does the organization provide counseling after appraisal?

(a) Yes (b) No

(11) Is 3600 technique an effective Performance appraisal system?

(a) Yes (b)No (c) can’t say

(12) Is self appraisal technique of Performance appraisal system effective?

(a) Yes (b) No

(13) Do you think Performance appraisal system will help in improving the effectiveness
of the employees?

(a) Yes (b) No

Any suggestions:

………………………………………………………………………………………………
………………………………………………………………………………………………
……………………………………….. .

63