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AProject Report
On
“THE STUDY OF PERFORMANCE APPRAISAL AT SHUBH MOTORS JABALPUR”
Submitted for the partial fulfillment of the requirement for the degree of
MASTER OF BUSINESS ADMINISTRATIONTO
RANI DURGAVATI VISHVAVIDYALA, JABALPUR
Under the Valuable Guidance of
HARPEET SINGH MAKIN SHAILENDRA BASEDIYA (ASSISTANT PROFF.) H.O.D.(M.B.A.)
Submitted bySONALI AGRAHARI
MBA 3RD SEMENROLLMENT NO. BA/3178
SESSION2013-14
GLOBAL NATURE CARE SANGTHAN’S GROUP OF INSTITUTIONS
1
JABALPUR (M.P.)
2
DECLARATION
I hereby declare that the Project entitled “STUDY OF
PERFORMANCE APPRAISAL” being submitted in partial fulfillment
for the award of the degree of Master of Business Administration to
"Rani Durgavati Vishwavidyalaya, Jabalpur" is the authentic record of
my own work done under the guidance of MR.HARPREET SINGH
MAKIN.
The matter reported in this project has not been submitted earlier
for the award of degree or diploma.
Jabalpur
Dated : Sonali Agrahari
3
4
GLOBAL INSTITUTE OF ENGINEERING AND MANAGEMENT, JABALPUR
CERTIFICATE
This is to certify that the project entitled as “STUDY OF
PERFORMANCE APPRAISAL” completed by SONALI
AGRAHARI as a fulfillment of the practical work of the degree of
Master of Business Administration Semester – III from Rani Durgavati
Vishwavidyalaya, Jabalpur for the year 2014.
It has been duly completed as record of bonafide work in practical
of HR of Global Institute of Engineering and Management, Jabalpur I
hope this report is up to the desired standard both in respect of its
contents and literacy presentation.
Mr. Shailendra Basediya
(HOD)
Global Institute of Engineering and
Management, Jabalpur
5
GLOBAL INSTITUTE OF ENGINEERING AND MANAGEMENT, JABALPUR
CERTIFICATE
This is to certify that the project entitled “STUDY OF PERFORMANCE
APPRAISAL” completed by Sonali Agrahari as a fulfillment of the
practical work of the degree of Master of Business Administration
Semester – III from Rani Durgavati Vishwavidyalaya, Jabalpur for the
year 2013.
It has been duly completed as record of bonafide work in practical of HR
of Global Institute of Engineering and Management, Jabalpur This report
has been completed by SONALI AGRAHARI under my guidance.
MR.HARPREET SINGH MAKINGlobal Institute of Engineering and Management, Jabalpur
6
Acknowledgement
The project defines and signifies the shear
mannerism in which numerous interacted task are
performed by a team composed of committed members.
Each member bearing their own importance and
providing contribution, which is nothing short of being
invaluable.
I am thankful to Mr. Shailendra Basediya,
Principal, for his valuable support in the preparation of
the project.
The day which marked the beginning of my project
bears a special status to me, I begin with the proceedings
and support of MR.HARPREET SINGH MAKIN on the
project work entitled under whose support I have been
able to make this project .
Last but not the least, I wish to remember with the
deep sense of gratitude the encouragement provided to
me by my friends and batchmates.
SONALI AGRAHARI
7
"STUDY OF PERFORMANCE
APPRAISAL"
8
INDEX
Chapter-............................................................................................................1 3INTRODUCTION ..............................................................................................3COMPANY PROFILE .......................................................................................7Chapter-2 ..........................................................................................................16OBJECTIVES ...................................................................................................16Chapter-3 ..........................................................................................................17EXECUTIVE SUMMARY ..............................................................................17Chapter-4 ..........................................................................................................33RESEARCH METHODOLOGY .....................................................................33Chapter-5 ..........................................................................................................35LIMITATIONS ................................................................................................35Chapter-6 ..........................................................................................................36ANALYSIS OF DATA ....................................................................................36Chapter-7 ..........................................................................................................51FINDINGS OF THE STUDY ..........................................................................51Chapter-8 ..........................................................................................................53CONCLUSION ................................................................................................53Chapter-9 ..........................................................................................................54SUGGESTIONS ...............................................................................................54BIBLIOGRAPHY ............................................................................................55WEBLIOGRAPHY ..........................................................................................55APPENDICES ..................................................................................................56
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PERFORMANCE MANAGEMENT
DETERMINE INDIVIDUAL OBJECTIVES LINKED TO
CORPORATE GOALS
PERFORMANCE APPRAISAL
ENSURE RESPONSIBILITY AND ACCOUNTABILITY
PERFORMANCE LINKED INCREMENTS/ INCENTIVES/ REWARDS
CORPORATE GOALS
Chapter-1INTRODUCTION
In the business world investment is made in machinery, equipment and services. Quite
naturally time and money is spent ensuring that they provide what their suppliers
claim. In other words the performance is constantly appraised against the results
expected.
When it comes to one of the most expensive resources companies invest in, namely
people, the job appraising performance against results is often carried out with the
same objectivity. Each individual has a role to play and management has to ensure
that the individual’s objectives translate into overall corporate objectives of the
company. Performance Management includes the performance appraisal process
which in turn helps identifying the training needs and provides a direction for career
and succession planning.
1.1 Understanding Performance Management
10
What is Performance?
Performance is synonymous with behaviour; it is what people actually do.
Performance includes those actions that are relevant to the organizational growth and
can be measured in terms of each individual’s proficiency (level of contribution).
Effectiveness Performance refers to the evaluation of results of performance that is
beyond the influence or control of the individual.
How is Performance managed?
Good performance by the employees creates a culture of excellence, which benefits
the organization in the long run. The activity includes evaluation of jobs and people
both, managing gender bias, career planning, and devising methods of employee
satisfaction etc. the efforts are to make to generate the individual’s aspirations with
the objectives of the organization. Organization has to clear the way of career
advancements for talented and hardworking people. Fear of any kind from the minds
of the employees should be removed so that they give best to their organization.
Allow free flow of information. Communication network should be designed in such
a way no one should be allowed to become a hurdle. This enables the managers to
take correct decisions and that too quickly.
Why Performance Appraisal?????
Today’s working climate demands a great deal of commitment and effort from
employees, who in turn naturally expect a great deal more from their employers.
Performance appraisal is designed to maximize effectiveness by bringing participation
to more individual level in that it provides a forum for consultation about standards of
work, potential, aspirations and concerns. It is an opportunity for employees to have
significantly greater influence upon the quality of their working lives. In these times
of emphasis on “quality”, there is a natural equation: better quality goods and services
from employees who enjoy better quality “goods and services” from their employers.
Performance appraisal must be seen as an intrinsic part of a manager’s responsibility
and not an unwelcome and time-consuming addition to them. It is about improving
performance and ultimate effectiveness.
11
Performance appraisal is a systematic means of ensuring that managers and their staff
meet regularly to discuss post and present performance issues and to agree what
future is appropriate on both sides.
This meeting should be based on clear and mutual understanding of the job in
question and the standards and outcomes, which are a part of it. In normal
circumstances, employees should be appraised by their immediate managers on one to
one basis. Often the distinction between performance and appraising is not made.
Assessment concerns itself only with the past and the present. The staff is being
appraised when they are encouraged to look ahead to improve effectiveness, utilize
strengths, redress weaknesses and examine how potentials and aspirations should
match up. It should also be understood that pushing a previously prepared report
across and desk cursorily inviting comments, and expecting it to be neatly signed by
the employee is not appraisal - this is merely a form filling exercise which achieves
little in terms of giving staff any positive guidance and motivation.
THE APPRAISAL OF PERFORMANCE SHOULD BE GEARED TO:
Improving the ability of the jobholder;
Identifying obstacles which are restricting performance
Agreeing a plan of action, that will lead to improved performance.
It is widely accepted that the most important factor in organization effectiveness is the
effectiveness of the individuals who make up the organization. If every individual in
the organization becomes more effective, then the organization itself will become
more effective. The task of reviewing situations and improving individual
performance must therefore be a key task for all managers.
For appraisal to be effective, which means producing results for the company, each
manager has to develop and apply the skills of appraisal
These are: -
Setting standards on the performance required, which will contribute to the
achievement of specific objectives
12
Monitoring performance in a cost –effective manner, to ensure that previously
agreed performance standards are actually being achieved on an ongoing basis
Analyzing any differences between the actual performance and the required
performance to establish the real cause of a shortfall rather than assume the
fault to be in the jot holder.
Interviewing having a discussion with the jobholder to verify the true cause of
a shortfall, a developing a plan of action, which will provide the performance,
required
Appraisal can then become a way of life, not concerned simply with the regulation of
rewards and the identification of potential, but concerned with improving the
performance of the company. The benefits of appraisal in these terms are immediate
and accrue to the appraising manager, the subordinate manager/employee, and to the
company as a whole
13
COMPANY PROFILE
If you’ve gone from here to there or just about anywhere in India, chances are you’ve
driven with us. For over 3 decades now, we’ve been going places with India.
1982. Gurgaon, Haryana. Little did this quiet suburb of New Delhi know that it was to
become the seat of India’s automobile revolution, at the Maruti Suzuki factory.
In 1982, India turned out just 40,000 cars every year. The Maruti 800 rolled out and a
new chapter began. Ours was a story of an obsession with customer delight, unheard
of until then.
It was about a commitment to create value. Of innovation, quality, creativity,
partnerships, openness and learning.
It was a new story of leadership. Today, Maruti Suzuki alone makes 1.5 million cars
every year. That’s one car every 12 seconds. Head and shoulders above the rest,
which includes every major global auto company.
It was also the story of a motoring revolution-cars that delivered great performance,
efficiency and environment friendliness with low cost of ownership. A story built on
Suzuki’s belief in small cars for a big future. One that enabled millions of Indians to
make driving a way of life. Indians, and India, got into the driver’s seat, and we were
happy to drive with them in the fast lane.
So what drives us? Our relationship with the millions of Indians who drive us. Our
team of over 9000 dedicated and passionate professionals. That turn out 16 cars with
over 150 variants. Backed by a nationwide service network spanning 1440 Cities &
towns and Sales network spread across 840 cities. 2 state-of-the-art factories, at
Manesar and Gurgaon. A diesel engine plant with capacity upped. To turn out 7 lakh
diesel cars a year. And a commitment to road safety that is making India’s roads safer.
But millions of miles later, our driving inspiration comes from one place. India’s
hopes, dreams and aspirations. It’s been a great journey so far. And it feels like we’ve
only just begun.
14
INTRODUCTION……..
Maruti Suzuki India Limited is a publicly listed automaker in INDIA. It is a
leading four-wheeler automaker manufacturer in south asia. Suzuki motor corporation
of Japan holds a majority stake in the company. It was the first company in India to
mass-produce and sell more than a million cars. It is largely credited for having
brought in an automobile revolution to India. It is the market leader in India and on 17
September 2007, Maruti Udyog was renamed Maruti Suzuki India Limited. The
company headquarter is in GURGAON, HARYANA. Maruti Suzuki is one of India's
leading automobile manufacturers and the market leader in the car segment, both in
terms of volume of vehicles sold and revenue earned. Maruti Udyog Limited (MUL)
was established in February 1981, though the actual production commenced in 1983
with the Maruti 800 , based on the SUZUKI Alto kei car ,which at the time was the
only modern car available in India, its' only competitors- the Hindustan Ambassador
and premier Padmini were both around 25 years out of date at that point Through
2004, Maruti has produced over 5 Million vehicles. Marutis are sold in India and
various several other countries, depending upon export orders. Models similar to
Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki and
manufactured in Pakistan and other South Asian countries. The company annually
exports more than 50,000 cars and has an extremely large domestic market in India
selling over 730,000 cars annually. Maruti 800 ,till 2004, was the India's largest
selling compact car ever since it was launched in 1983. More than a million units of
this car have been sold worldwide so far . Due to the large number of Maruti 800s
sold in the Indian market, the term "Maruti" is commonly used to refer to this
compact car model. Till recently the term "Maruti", in popular Indian culture, was
associated to the Maruti 800 model.
15
Maruti Suzuki was born as a government company, with Suzuki as a minor partner to
make a people's car for middle class India. Over the years, the product range has
widened, ownership has changed hands and the customer has evolved.
Mission- To provide maximum value for money to their customers through
continuous improvement of products and services.
Vision- Creating customer delight and shareholders wealth .
Maruti has a network of 391 sales outlets across 230 cities all over India. The service
network covers 1,113 towns and cities, bolstered by 2,142 authorized service
outlets.The company's change in strategy and emphasis on developing effective
marketing communications was their highlights.
MARKET SCENARIO
The company vouches for customer satisfaction. For its sincere efforts it has been
rated (by customers)first in customer satisfaction among all car makers in India for
ten years in a row in annual survey. Maruti Suzuki India Limited, a subsidiary of
Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for
over two decades. During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024
were exported. In all, over six million Maruti cars are on Indian roads since the first
car was rolled out on 14 December 1983.
16
Shubh motors limited
Shubh Mothors India limited (MSIL, formerly known as Maruti Udhyog
Limited) is a subsdiary of Suzuki Motor Corporation, Japan. Maruti Suzuki has been
the leader of the india car market for over two and a half decades. The Company has
two Manufacturing facilities located at Gurgoan and Manesar, South of new Delhi,
India. Both the Facilities have a combianed capability to produce over a 1.5 milions
(1,500,000) vehicles annually. The company plans to expand its manufacturing
capacity to 1.77 milion by 2013.
The Company offers 15 brands and over 150 variants ranging from people’s
car Maruti 800 to the latest life Utility Vehicle, Ertige. The portfolio includes Maruti
800, Alto k10, A-star, Estialo, WagonR, RitZ, Swift DZire, SXz=4, Omini, Eeco,
Kizashi, Grand Vitare, Gypsy and Ertiga. In an environment friendly initiative, in
August 2010 Maruti Suzuki Introduced Factory fifted CNG option on 5 models across
vehicle segments. These include Eeco, Alto, Estilo,, Wagon R and SX4. With this
Maruti Suzuki became the first company in india to introduce factory Fitted CNG
vehicles.
In terms of number of cars produced and sold, the Company is the
largest subsidiary of Suzuki Motor Corporation. Cumulatively, the company has
produced over 10 million vechils since the roll out of its first vehicle on 14 th
December, 1983.
Maruti Suzuki is the only Indian Company to have crossed the 10
million sales mark since its inception. In 2011-12, the company sold over 1.13 million
vehicles including 1,27,379 units of exports.
The Company employs over 9000 people (as on 31st March, 2012)
Maruti Suzuki’s sales and service network is the largest among car manufactures in
India. The Company has been rated fist is customer satisfaction in the JD Power
survey for 12 consecutive years. Besides serving the Indian Market, Maruti Suzuki
also exports cars to several countries in Europe, Asia, Latin America, Africa and
Oceania .
17
Maruti Suzuki
Maruti Suzuki India Limited (MSIL, formerly Maruti Udyog Limited)
is a subsidiary of Suzuki Motor Corporation of Japan. Maruti Suzuki is a leading
manufacturer of passengerVehicles in India. Lovingly referred to as the people’s car
marker, over the past three decades Maruti Suzuki has changed the way people in
India commute and travel.
Full Range of cars.
We offer 15 brands and over 150 variants ranging from people’s car Maruti
800 to the lated life utility Vehicle, Ertiga. Over portfolio includes Maruti 800, Alto,
A-star, Estilo, WagonR, Ritz, Swift, Switf DZire, SX4, omni, Eeco, Kizashi, Grand
Vitara, Gypsy and Eritiga.
Customer Delight
Over three decades, Maruti Suzuki has won the hearts, of customers throught of
customers throught hight quality products and services. Individual customers vouch
for the quality and low Cost of Ownership of Maruti Suzuki products. Structured,
independent studies like the JD power Asia Pacific Customer Satisfaction indes, has
ranked Maruti Suzuki as number one for the last twelve years in a row. This unique
achievement is unparal leled in the world, across industries, as nowhere else in the
world is the market leader no. 1 in customer satisfaction.
Shubh Motors and Road Safety
Many industry surveys have shown that majority of road accidents are caused due to
driver negligence.
Road safety has become a grave concern for all. This concern has driven us to make
road safety our priority.
Maruti Suzuki realizing the need to improve road safety and minimize accidents took
up road safety as its focused CSR initiative. Maruti Suzuki operates its Road Safety
initiative at two levels.
18
19
20
DirectorMr. Ashish Khemtani
Shubh motors had established on 4march 2008 at Jabalpur.department of
shubh motors………
True Value
MDS
EDP
PDI
Insurance
Customer Care
Front office
Sales
Service
Workshop
Bodyshop
Washing
21
Maruti has aided customers by providing them the facility to bring their vehicle to a
'Maruti True Value' outlet and exchange it for a new car, by paying the difference.
They are offered loyalty discounts in return. This helps them retain the customer.
Maruti Call Center:-
Maruti has proper customer complain handling cell under the CRM dept. The CIC
will help MUL rapidly build an information pool of over 3 million Maruti owners as
well as that of its prospective
Maruti insurance:-
It has launched in 2002 Maruti provides vehicle insurance to its customers with the
help of the National Insurance Company, Bajaj Allianz, New India Assurance and
Royal Sundaram. The service was set up the company with the inception of two
subsidiaries Maruti
Insurance Distributors Services Pvt. Ltd and Maruti Insurance
Brokers Pvt. Limited.
This service started as a benefit or value addition to customers and was able to ramp
up easily. By December 2005 they were able to sell more than two million insurance
policies since its inception.
22
Future Plan:-Fourth assembly plant will be scaled up to produce 3,00,000 cars a year by 2010.
NEXT SUPERSTAR:-
Suzuki Cervo'sport a Suzuki 660cc engine - as against Nano's 623cc and wear a tag
of around Rs 1.5 lakh on road.
23
Chapter-2OBJECTIVES
To examine why an appraisal system is important.
To study existing appraisal system in various organizations
To find the expectation of appraiser and appraise
To determine the satisfaction level of the appraise
To reveal the various loopholes in the appraisal system if any
To find the consequences of an inappropriately conducted appraisal system
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Chapter-3EXECUTIVE SUMMARY
Performance appraisals are a systematic way of evaluating the standard of an
employee’s performance. Steps for developing a systematic performance appraisal
1. Identify key performance criteria
Development of key performance criteria should be based on a comprehensive job
description and undertaken in consultation with employees.
2. Develop appraisal measures
In order to obtain accurate and valid performance appraisals, appraisal measures
should be tailored to the specific job or “job family” (i.e., groups of similar jobs). An
evaluation of factors in the work environment which help or hinder performance is
also recommended. This ensures that realistic expectations are set for employee’s
performance, and is also likely to increase the perceived fairness and acceptability of
performance appraisals.
3. Collect performance information from different sources
Traditionally, it has been the sole responsibility of managers / supervisors to assess
performance. However, other organisational members (e.g., clients, coworkers,
subordinates) can be a valuable source of information as they are likely to have
exposure to different aspects of an employee’s performance. Collecting information
from multiple sources can increase the accuracy of performance evaluation (i.e.,
reduce bias), and increase employee’s perceptions of fairness.
4. Conduct an appraisal interview
The two central purposes of the appraisal interview are to:
1. Reflect on past performances to identify major achievements, areas for further
improvement, and barriers / facilitators to effective performance
2. Identify goals and strategies for future work practice.
25
The appraisal interview should be a constructive, two-way exchange between the
supervisor and employee, with preparation for the interview done by both parties
beforehand.
5. Evaluate the appraisal process
The performance appraisal process should undergo regular review and improvement.
For example, focus groups or surveys could be conducted to gauge employee’s
perceptions of the appraisal process. A successful performance appraisal process
should demonstrate a change in both the ratings of employee’s performance and
aspects of the work environment that impact upon work performance.
Best practice in performance appraisal
In essence, best practice in performance appraisals involves:
• Integrating performance appraisal into a formal goal setting system
• Basing appraisals on accurate and current job descriptions
• Offering adequate support and assistance to employees to improve their
performance (e.g., professional development opportunities)
• Ensuring that appraisers have adequate knowledge and direct experience of the
employee’s performance
• Conducting appraisals on a regular basis.
Meaning and Definition of Performance Appraisal
Performance appraisal is a formal system that evaluates the quality of a employee’s
performance. An appraisal should not be viewed as an end in itself, but rather as an
important process within a broader performance management system that links:
• Organisational objectives
• Day-to-day performance
• Professional development
• Rewards and incentives
In simple terms, appraisal may be understood as the assessment of an individual’s
performance in a systematic way, the performance being measured against such
factors as job knowledge, quality, and quantity of output, initiative, leadership
26
abilities, supervision, dependability, co-operation, judgment, versatility, health, and
the like. Assessment should not be confined to past performance alone. Potentials of
the employee for future performance must also be assessed.
A formal definition of performance appraisal is:
“It is the systematic evaluation of the individual with respect to his or her
performance on the job and his or her potential for development.”
A more comprehensive definition is:
“Performance appraisal is a formal, structured system of measuring and evaluating an
employee’s job related behaviors and outcomes to discover how and why the
employee is presently performing on the job and how the employee can perform more
effectively in the future so that the employee, organization, and society all benefit.”
27
TRADITIONAL PERFORMANCE APPRAISAL
The history of performance appraisal is quite brief. Its roots in the early 20th century
can be traced to Taylor's pioneering Time and Motion studies. But this is not very
helpful, for the same may be said about almost everything in the field of modern
human resources management.
During the First World War, appraisals concept was adopted by US army which was
in the form of merit rating. It was man-to-man rating system for evaluation of military
personnel. From the army this concept entered the business field and was restricted to
hourly-paid workers. During 1920s, relational wage structures for hourly- paid
workers were adopted in industrial units and each worker was used to be rated in
comparison to other for determining wages rates. This system was called merit rating.
The process was firmly linked to material outcomes. If an employee's performance
was found to be less than ideal, a cut in pay would follow. On the other hand, if their
performance was better than the supervisor expected, a pay rise was in order.
Little consideration, if any, was given to the developmental possibilities of appraisal.
If was felt that a cut in pay, or a rise, should provide the only required impetus for an
employee to either improve or continue to perform well. Sometimes this basic system
succeeded in getting the results that were intended; but more often than not, it failed.
For example, early motivational researchers were aware that different people with
roughly equal work abilities could be paid the same amount of money and yet have
quite different levels of motivation and performance. These observations were
confirmed in empirical studies. Pay rates were important, yes; but they were not the
only element that had an impact on employee performance. It was found that other
issues, such as morale and self-esteem, could also have a major influence.
As a result, the traditional emphasis on reward outcomes was progressively rejected.
In the 1950s in the United States, the potential usefulness of appraisal as tool for
motivation and development was gradually recognized. The general model of
performance appraisal, as it is known today, began from that time.
28
MODERN APPRAISAL
Performance appraisal may be defined as a structured formal interaction between a
subordinate and supervisor, that usually takes the form of a periodic interview (annual
or semi-annual), in which the work performance of the subordinate is examined and
discussed, with a view to identifying weaknesses and strengths as well as
opportunities for improvement and skills development.
In many organizations - but not all - appraisal results are used, either directly or
indirectly, to help determine reward outcomes. That is, the appraisal results are used
to identify the better performing employees who should get the majority of available
merit pay increases, bonuses, and promotions. By the same token, appraisal results are
used to identify the poorer performers who may require some form of counseling, or
in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be
aware of laws in their country that might restrict their capacity to dismiss employees
or decrease pay.) Whether this is an appropriate use of performance appraisal - the
assignment and justification of rewards and penalties - is a very uncertain and
contentious matter.
OBJECTIVES OF PERFORMANCE APPRAISAL
Salary Increase
Performance appraisal plays a role in making decision about salary increase.
Normally salary increase of an employee depends upon on how he is performing his
job. There is continuous evaluation of his performance either formally or informally.
This may disclose how well an employee is performing and how much he should be
compensated by way of salary increase.
Promotion
Performance appraisal plays significant role where promotion is based on merit and
seniority. Performance appraisal discloses how an employee is working in his present
29
job and what are his strong and weak points. In the light of these, it can be decided
whether he can be promoted to the next higher position.
Training and Development
Performance appraisal tries to identify the strengths and weakness of an employee on
his present job. This information can be used for devising training and development
programmes appropriate for overcoming weaknesses of employees.
Feedback
Performance appraisal provides feedback to employees about their performance. A
person works better when he knows how he is working. This works in two ways,
firstly, the person gets feedback about his performance. Secondly, when the person
gets feedback about his performance, he can relate his work to the orgaisational
objectives.
Pressure on Employees
Performance appraisal puts a sort of pressure on employees for better performance. If
the employees are conscious that they are being appraised in respect of certain factors
and their future largely depends on such appraisal.
Others
1. Identifying systemic factors that are barriers to, or facilitators of, effective
performance.
2. To confirm the services of probationary employees upon their completing the
probationary period satisfactorily.
3. To improve communication. Performance appraisal provides a format for
a. dialogue between the superior and the subordinate, and improves
b. understanding of personal goals and concerns. This can also have the effect of
c. increasing the trust between the rater and the ratee.
d. determine whether HR programmes such as selection, training, and transfer
30
i. have been effective or not.
How to Conduct a Performance Appraisal Process
The following five-step approach to conducting a systematic performance appraisal is
recommended:
1) Identify key performance criteria
2) Develop appraisal measures
3) Collect performance information from different sources
4) Conduct an appraisal interview
5) 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.
Key Dimensions of Performance
Competencies Knowledge, skills, and abilities relevant to performance
Behaviours Specific actions conducted and / or tasks performed
Results / outcomes Outputs, quantifiable results, measurable outcomes and
achievements, objectives attained
Organisational
citizenship behaviours
Actions that are over and above usual job responsibilities
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:
31
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, behaviours 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,
Behaviours and outcomes
Identify how these key competencies, behaviours 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
32
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)
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:
i) Generic versus individually tailored measures
ii) Objective versus subjective assessments
iii) 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 organisation. Although this approach can save time and
minimise 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-
33
specific (i.e., individually tailored) appraisal formats is beyond the resource capacity
of the organisation, an alternative would be to develop two groups of criteria:
1) Core competencies that have applicability to the performance appraisal of all
employees
within the organisation
2) 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
behaviours. Some common objective job performance measures include
Absenteeism (number of days absent)
Accidents (number of accidents)
Incidents at work (number of incidents / assaults / altercations)
Lateness (days late)
Meeting deadlines.
Objective measures can be relatively quick and easy to obtain (given good
organisational 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:
34
The behaviours and outcomes being assessed are stated in clear behavioural 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 behaviours and
outcomes (frustration with long and unwieldy questionnaires may introduce error
in responses).
iii) 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.
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
organisation 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.
35
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 organisational 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 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:
i) Manager / supervisor appraisals
ii) Self appraisals
iii) Coworker appraisals
iv) Subordinate appraisals
v) Client appraisals.
36
METHODS OF PERFORMANCE APPRAISAL
PAST-ORIENTED METHODS
1) Rating Scales:
The rating scale method offers a high degree of structure for appraisals. Each
employee trait or characteristic is rated on a bipolar scale that usually has several
points ranging from “poor” to “excellent” (or some similar arrangement).
The traits assessed on these scales include employee attributes such as cooperation,
communications ability, initiative, punctuality and technical (work skills)
competence. The nature and scope of the traits selected for inclusion is limited only
by the imagination of the scale’s designer, or by the organization’s need to know. The
one major provision in selecting traits is that they should be in some way relevant to
the appraisee’s job.
Advantages
The greatest advantage of rating scales is that they are structured and standardised.
This allows ratings to be easily compared and contrasted - even for entire workforces.
Each employee is subjected to the same basic appraisal process and rating criteria,
with the same range of responses. This encourages equality in treatment for all
appraisees and imposes standard measures of performance across all parts of the
organization.
Rating scale methods are easy to use and understand. The concept of the rating scale
makes obvious sense; both appraisers and appraisees have an intuitive appreciation
for the simple and efficient logic of the bipolar scale. The result is widespread
acceptance and popularity for this approach.
Disadvantages
Trait Relevance
Are the selected rating-scale traits clearly relevant to the jobs of all the appraisees? It
is inevitable that with a standardised and fixed system of appraisal that certain traits
will have a greater relevance in some jobs than in others.
For example, the trait “initiative” might not be very important in a job that is tightly
defined and rigidly structured. In such cases, a low appraisal rating for initiative may
37
not mean that an employee lacks initiative. Rather, it may reflect that fact that an
employee has few opportunities to use and display that particular trait. The relevance
of rating scales is therefore said to be context-sensitive. Job and workplace
circumstances must be taken into account.
Systemic Disadvantage
Rating scales, and the traits they purport to measure, generally attempt to encapsulate
all the relevant indicators of employee performance. There is an assumption that all
the true and best indicators of performance are included, and all false and irrelevant
indicators are excluded.
This is an assumption very difficult to prove in practice. It is possible that an
employee’s performance may depend on factors that have not been included in the
selected traits. Such employees may end up with ratings that do not truly or fairly
reflect their effort or value to the organization. Employees in this class are
systemically disadvantaged by the rating scale method.
Advantages
The essay method is far less structured and confining than the rating scale method. It
permits the appraiser to examine almost any relevant issue or attribute of
performance. This contrasts sharply with methods where the appraisal criteria are
rigidly defined. Appraisers may place whatever degree of emphasis on issues or
attributes that they feel appropriate. Thus the process is open-ended and very flexible.
The appraiser is not locked into an appraisal system the limits expression or assumes
that employee traits can be neatly dissected and scaled.
Disadvantages
Essay methods are time-consuming and difficult to administer. Appraisers often find
the essay technique more demanding than methods such as rating scales.
The techniques greatest advantage - freedom of expression - is also its greatest
handicap. The varying writing skills of appraisers can upset and distort the whole
process. The process is subjective and, in consequence, it is difficult to compare and
contrast the results of individuals or to draw any broad conclusions about
organizational needs
38
7) Grading: In this method, certain categories of abilities of performance are defined
well in advance and person are put in particular category depending on their traits and
characteristics. Such categories may be definitional like outstanding, good, average,
poor, very poor or may be in terms of letter like A, B, C, D etc with A indicating the
best and D indicating the worst. This method, however, suffers from one basic
limitation that the rater may rate most of the employees at higher grades.
8) Performance Tests & Observations: This is based on the test of knowledge or
skills. The tests may be written or an actual presentation of skills. Tests must be
reliable and validated to be useful.
• Advantage – Tests only measure potential and not attitude. Actual performance is
more a function of attitude of person than potential.
• Disadvantages – Some times costs of test development or administration are high.
9) Confidential Reports: Though popular with government departments, its
application in industry is not ruled out. Here the report is given in the form of Annual
Confidentiality Report (ACR). The system is highly secretive and confidential.
Feedback to the assessee is given only in case of an adverse entry. Disadvantage is
that it is highly prone to biases and recency effect and ratings can be manipulated
because the evaluations are linked to future rewards like promotions, good postings,
etc.
10) Comparative Evaluation Method (Ranking & Paired Comparisons): These are
collection of different methods that compare performance with that of other co-
workers. The usual techniques used may be ranking methods and paired comparison
method.
Ranking Method: Superior ranks his worker based on merit, from best to worst.
However how best and why best are not elaborated in this method. It is easy to
administer.
Paired Comparison Method: In this method each employee is paired with every
other employee in the same cadre and then comparative rating done in pairs so
formed. The number of comparisons may be calculated with the help of a formula
39
– N x (N-1) / 2. The method is too tedious for large departments and often such
exact details are not available with rater.
Future-Oriented Methods
1) MBO (Appraisal By Results) : The use of management objectives was first
widely advocated in the 1950s by the noted management theorist Peter Drucker. MBO
(management by objectives) methods of performance appraisal are results-oriented.
That is, they seek to measure employee performance by examining the extent to
which predetermined work objectives have been met. Usually the objectives are
established jointly by the supervisor and subordinate. Once an objective is agreed, the
employee is usually expected to self-audit; that is, to identify the skills needed to
achieve the objective. Typically they do not rely on others to locate and specify their
strengths and weaknesses. They are expected to monitor their own development and
progress.
40
Chapter-4RESEARCH METHODOLOGY
The procedures by which researchers go about their work of describing, explaining
and predicting phenomena are called methodology. Methods comprise the procedures
used for generating, collecting and evaluating data. Methods are ways of obtaining
information useful for assessing explanations.
RESEARCH DEFINITION:
The definition of research given by Creswell is "Research is a process of steps used to
collect and analyze information to increase our understanding of a topic or issue". It
consists of three steps: Pose a question, collect data to answer the question, and
present an answer to the question.
Research Design:
The type of research chosen for the study is descriptive research. In descriptive
research various parameters will be chosen and analyzing the variations between these
parameters. This was done with an objective to find out the motivation level of the
employees.
Data Sources:
The data collected for the study is mainly through the distribution of questionnaire; to
be precise the data collected for study was both primary and secondary sources.
Primary Data:
Primary data is the information collected for the first time; there are several methods
in which the data is complied. In this project it was obtained by mean of
questionnaires. Questionnaire was prepared and distributed to the employees.
Secondary Data:
Secondary data needed for conducting research work were collected from company
websites, library and search engines.
41
Research Instrument:
In this study the primary data was collected by survey technique. In this we
distributed the questionnaires to the respondents. The researcher structured the
questionnaire in the form of:
1. Close Ended Questions
2. Multiple Choice Questions
Questionnaire:
A questionnaire is a sheet of paper containing questions relating to contain specific
aspect, regarding which the researcher collects the data. Because of their flexibility
the questionnaire method is by far the most common instrument to collect primary
data. The questionnaire is given to the respondent to be filled up.
DATA COLLECTION TOOLSQuestionnaire
SAMPLING PLANSampling design is to clearly define set of objective, technically called the
universe to be studied. Sampling technique used is simple random sampling
method.
SAMPLING DESIGNThis refers to the number of items to be selected from the universe to
constitute a sample.
UNIT/SIZEThe sample size for this study was taken as.Total : 60 Employees
METHODRandom Sampling
42
Chapter-5LIMITATIONS
Everything in the world has some limitation. Preparing a thesis paper is not exception
to this truth. The limitations I faced and the limitations of the study are given below:
Primary and secondary data collection
Unavailability of sufficient books, journals, articles and publications.
Limited knowledge regarding this study.
Theoretical comparison of the performance between the companies.
Limitation of the sampling methods.
43
Chapter-6ANALYSIS OF DATA
Table 4: Duration of work period in Maruti .
Particulars No. of respondents Percentage of
respondents
0-1 yrs 2 3%
1-5 yrs 33 55%
5-10 yrs 15 25%
10+ yrs 10 17%
Total 60 100%
Duration of work in Maruti .
0-1 yrs 1-5 yrs 5-10 yrs 10+ yrs0
5
10
15
20
25
30
35
no. of respondents
3 percent of the respondents are dealing with Maruti for less than a year. 55 percent of
the respondents are dealing in Maruti from 1-5 yrs. 25 percent of the respondents are
dealing in Maruti from 5-10 yrs. 17 percent of the respondents are dealing in Maruti
for over 10 yrs.
44
EXTENT OF SATISFACTION IN SETTING GOALS/OBJECTIVES IN THE
BEGINNING OF THE YEAR.
Table 5: Extent of satisfaction
Particulars No. of respondents Percentage of
respondents
Very satisfied 38 63%
Satisfied 18 30%
Dissatisfied 4 7%
Total 60 100%
Chart 6: Extent of satisfaction.
very satisfied satisfied dissatisfied05
10152025303540
no. of respondents
63 percent of the respondents are very satisfied in setting their goals and
objectives in the beginning of the year. 30 percent of the respondents are satisfied in
setting their goals and objectives in the beginning of the year. 7 percent of the
respondents are dissatisfied in setting their goals and objectives in the beginning of
the year.
45
RATINGS OF THE PA STRATEGIES AND PROGRAMMES IN THE
COMPANY.
Table 6: Ratings of PA strategies.
Particulars No. of respondents Percentage of
respondents
Good 42 70%
Average 18 30%
Bad 0 0%
Total 60 100%
Chart 7: Ratings of PA strategies.
Good Average Bad05
1015202530354045
no. of respondents
70 percent of the respondents rate the Performance Appraisal strategies as good. 30
percent of the respondents rate the Performance Appraisal strategies as average. None
of the respondents rates the Performance Appraisal strategies as bad.
46
PERFORMANCE APPRAISAL STRATEGIES ARE FAIR AND OBJECTIVE.
Table 7: PA strategies are fair or not.
Particulars No. of respondents Percentage of
respondents
Yes 34 84%
No 26 16%
Can’t say 0 0%
Total 60 100%
Chart 8: PA strategies are fair or not.
Yes No Can't say0
5
10
15
20
25
30
35
no. of respondents
84 percent of the respondents say that the Performance Appraisal strategies are fair
and objective. 16 percent of the respondents say that the Performance Appraisal
strategies are not fair and objective. None of the respondents are there who can’t say
anything.
47
IT IS NECESSARY TO APPRAISE AN EMPLOYEE.
Table 8: Necessity to appraise an employee.
Particulars No. of respondents Percentage of
respondents
Yes 60 100%
No 0 0%
Total 60 100%
Chart 9: Necessity to appraise an employee.
Yes No0
10
20
30
40
50
60
no. of respondents
100 percent of the respondents say that it is necessary to appraise an employee. None
of the respondents says that it is necessary to appraise an employee.
48
Table 9: Clarity in what is expected from the employee.
Particulars No. of respondents Percentage of
respondents
Yes 60 100%
No 0 0%
Total 60 100%
Chart 10: Clarity in what is expected from the employee.
Yes No0
10
20
30
40
50
60
no. of respondents
100 percent of the respondents say that they are clear with what is expected of them.
None of the respondents say that they are not clear with what is expected of them.
49
Table 10: Feedback is given to MCS.
Particulars No. of respondents Percentage of
respondents
Yes 37 62%
No 23 38%
Total 60 100%
Chart 11: Feedback is given to MCS.
Yes No0
5
10
15
20
25
30
35
40
no. of respondents
62 percent of the respondents say that the feedback is given to the MCS for the task
accomplished by them. 38 percent of the respondents say that the feedback is not
given to the MCS for the task accomplished by them.
50
Table 11: Suggestions and innovations are rewarded.
Particulars No. of respondents Percentage of
respondents
Yes 21 35%
No 39 65%
Total 60 100%
Chart 12: Suggestions and innovations are rewarded.
Yes No0
5
10
15
20
25
30
35
40
no. of respondents
35 percent of the respondents say that their suggestions and innovations are rewarded.
65 percent of the respondents say that their suggestions and innovations are not
rewarded.
51
Table 12: Supervisors share an employee’s personal concern.
Particulars No. of respondents Percentage of
respondents
Yes 43 72%
No 17 28%
Total 60 100%
Chart 13: Supervisors share an employee’s personal concern.
Yes No05
1015202530354045
no. of respondents
72 percent of the respondents say that the supervisors take interest in sharing their
personal concern. 28 percent of the respondents say that the supervisors do not take
interest in sharing their personal concern.
52
Table 13: Increments & promotions based on performance.
Particulars No. of respondents Percentage of
respondents
Yes 49 82%
No 9 15%
Can’t say 2 3%
Total 60 100%
Chart 14: Increments & promotions based on performance.
Yes No Can't say0
5
10
15
20
25
30
35
40
45
5049
9
2
no. of respondents
82 percent of the respondents say that the annual increments/promotions are based on
their performance. 15 percent of the respondents say that the annual
increments/promotions are not based on their performance. 3 percent of the
respondents can’t say or their answers are inapplicable.
53
Table 14: Satisfaction in inter departmental team work.
Particulars No. of respondents Percentage of
respondents
Very satisfied 17 28%
Satisfied 30 50%
Dissatisfied 13 22%
Total 60 100%
Chart 15: Satisfaction in inter departmental team work.
very satisfied satisfied dissatisfied0
5
10
15
20
25
30
17
30
13
no. of respondents
28 percent of the respondents are very satisfied with interdepartmental teamwork. 50
percent of the respondents are just satisfied with interdepartmental teamwork. 22
percent of the respondents are dissatisfied with interdepartmental teamwork.
54
Extent of help of training and development programmes in improving
employees’ performance.
Table 15:
Particulars No. of respondents Percentage of
respondents
To great extent 13 22%
To some extent 42 70%
To very little extent 5 8%
Total 60 100%
Chart 16:
great extent some extent very little extent0
5
10
15
20
25
30
35
40
45
no. of respondents
22 percent of the respondents say that the training and development programmes help
to a great extent to improve their performance. 70 percent of the respondents say that
the training and development programmes help to some extent to improve their
performance. 8 percent of the respondents say that the training and development
programmes help to a very little extent to improve their performance.
55
Performance Appraisal System is used in job rotation.
Table 16:
Particulars No. of respondents Percentage of
respondents
Mostly 7 12%
Partially 53 88%
Nil 0 0%
Total 60 100%
Chart 17:
Mostly Partially Nil0
10
20
30
40
50
60
no. of respondents
12 percent of the respondents say that performance appraisal system is mostly used in
job rotation. 88 percent of the respondents say that performance appraisal system is
partially used in job rotation. None of the respondents say that performance appraisal
system is not at all used in job rotation.
56
Extent of the purpose of performance appraisal system being fulfilled.
Table 17:
Particulars No. of respondents Percentage of
respondents
Completely 39 65%
Partially 21 35%
Total 60 100%
Chart 18:
Completely Partially0
5
10
15
20
25
30
35
40
no. of respondents
65 percent of the respondents say that the purpose of performance appraisal is
completely fulfilled. 35 percent of the respondents say that the purpose of
performance appraisal is partially fulfilled.
57
Maruti ALWAYS STRIVES FOR CONTINUOUS INDIVIDUAL
IMPROVEMENTS.
Table 18:
Particulars No. of respondents Percentage of
respondents
Strongly agree 13 22%
Agree 35 58%
Disagree 9 15%
Strongly disagree 3 5%
Total 60 100%
Chart 19:
Strongly agree Agree Disagree Strongly disagree
05
101520253035
no. of respondents
22 percent of the respondents strongly agree that Maruti always strives for
continuous individual improvements. 58 percent of the respondents agree that Maruti
always strives for continuous individual improvements. 15 percent of the respondents
disagree that Maruti always strives for continuous individual improvements. 5 percent
of the respondents strongly disagree that Maruti always strives for continuous
individual improvements.
58
Chapter-7FINDINGS OF THE STUDY
From the survey results its evident that both the appraisee’s and appraisers
expectation from Performance appraisal system are the same i.e. “Determination
of Promotion or Transfer” and “Salary Administration and Benefits”. Hence a
single performance appraisal system can satisfy needs of both the Appraiser and
appraisee. Therefore the Performance appraisal program would be designed in
such a way that the appraiser would be able to analyse the contribution of the
employee to the orgaisation periodically and all the employees who have been
performing well would be rewarded suitably either by an increase in the salary or
a promotion. Through this the appraiser can also motivate the employees who felt
that they had no growth in the organisation and serves the purpose of employee
development.Thus performance appraisals can be used as a significant tool fo
career lanning.
Analyzing ones own strengths and weaknesses is the best way of identifying the
potentials available, rather than the other person telling. Self-appraisal is a tool to
analyze oneself. One of the most important findings was that almost all the
employees wanted self-rating to be a part of performance appraisal program
carried out by the organisation. From the responses of the appraiser we can also
see that Self rating is not encouraged by the organisations. This could therefore be
an important factor which leads to dissatisfaction among the appraisees. At the
end of the year of the appraisal period the appraisal process should begin with
self-appraisal by every employee. To appraise ones own self on key performing
targets and qualities, the appraisee would go through a process of reflection and
review. It is an established fact that change is faster when it is self initiated. If any
employee has to improve or do better, he must first feel the need to do so.
Reflection and review is a process that enables him to feel the need and improve
more upon his strengths and weaknesses
Another point to be noticed is that even in the other forms of Performance
Appraisal also the employees expect that they should be given a chance to rate
59
their own performance. This can allow the employee to analyze ones own
performance which gives new insights on how one is performing and what are the
critical points where he has to put his best and improve upon
The existence of a proper complain channel was also of utmost importance to the
appraisees. They should be given a chance to convey their greviences to the top
management.
The appraisees also expect that their comments and suggestions should be taken in
to account while conducting the appraisals. This expectation is not fulfilled as the
appraisers do not take their comments and suggestions into consideration.
Therefore they should look into this matter before it leads to dissatisfaction among
the employees.
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Chapter-8CONCLUSION
With rewards being directly linked to achievement of objectives, goal setting and
Performance Appraisal assumes utmost importance. The Performance Appraisal
System has been professionally designed and it is monitored by HRD. The
implementation is the responsibility of each and every employee along with their
supervisor.
There should be adequate training to the evaluator that will go a long way in
answering the quality of Performance Appraisal. In conclusion, a Performance
Appraisal is a very important tool used to influence employees. A formal Performance
review is important as it gives an opportunity to get an overall view of job
performance and staff development. It encourages systematic and regular joint-
stocking and planning for the future. Good performance reviews therefore don’t just
summarize the past they help determine future performance.
61
Chapter-9SUGGESTIONS
Extensive of the job training.
Free hand in decision making.
Focused job responsibility.
Transparent career planning of all officers.
Give tangible advantages.
Exemplary rewards should be given for unique achievements of the
employees.
Informal were calling as and when they need.
Giving chance in decision making.
Reward for employee work.
Proper interactions with seniors.
Effective training and development programs should be held.
Proper feedback should be given to the management cadre staff at fixed time
periods.
Suggestions and innovations should be encouraged.
Performance appraisal system should be extensively used in job rotation.
Up gradation of basic qualification of all workers to be taken in future based
on their performance.
Improve competency of the workers.
The company should concentrate more on individual development.
62
BIBLIOGRAPHY
1. Business Ethics BY A R Khan First Edition page 51-57
2. Business Research Method by Donald R. Cooper & Pamela S. Schindler 10th
edition
3. Management by Griffin 9th Edition page 97-102
4. Marketing Research by Naresh K. Malhotra
5. The future of business by Lawrence J Gitman Fifth Edition page 88-90
6. Human Research Management by Gary Dessler 11th edition
7. Strategic Management by Fred R. David 12th
WEBLIOGRAPHY
1. http://www.suite101.com/content/budgeting-for-corporate-social-
responsibility-a220513#ixzz0yUddk3x8
2. http://www.newsfromafrica.org/newsfromafrica/articles/art_10243.html
3. http://www.karmayog.org/csrothercompanies/csrothercompanies_7021.htm
4. http://www.newsfromafrica.org/newsfromafrica/articles/art_10243.html
5. http://www.karmayog.org/csrothercompanies/csrothercompanies_7021.htm
63
APPENDICES
Questionnaire on Performance Appraisal forappraises and appraisers
(Tick your choice)1) Since how long have you been working in Maruti ?□0-1 yrs □ 1-5 yrs □5-10 yrs □10+ yrs
2) How satisfied are you in setting your goals and objectives in the beginning of the year?□ Very satisfied□ Satisfied□ Dissatisfied
3) How are the Performance Appraisal strategies and programmes in the company□ Good□ Average□ Bad
4) Do you consider Performance Appraisal strategies fair and objective?□ Yes□ No□ Can’t say
5) Is it necessary to appraise an employee?□ Yes□ No
6) Are you clear with what is expected of you?□ Yes□ No
7) Are the Management Cadre Staff provided with regular performance feedback? □ Yes□ No
8) Are your suggestions and innovations rewarded?□ Yes□ No
9) Do your supervisors take interest in sharing your personal concern?□ Yes□ No
64
10) Are your annual increments/promotions based on your performance? □ Yes□ No□ Can’t say
11) How satisfied are you in interdepartmental teamwork?□ Good□ Average□ Bad
12) To what extent do training and development programmes help in improving your performance?□ To great extent□ To some extent□ To very little extent
13) How far is the Performance Appraisal system used for job rotation?□ Mostly□ Partially□ Nil
14) To what extent is the purpose of Performance Appraisal fulfilled?□ Completely□ Partially□ Nil
15) Does Maruti always strive for continuous individual improvement?□ Strongly agree□ Agree□ Disagree□ Strongly disagree
Name of the respondent :
Address : Phone no. :
65
