Analysis of Employees Attitude Towards Potential & Performance Appraisal

Summer Training ReportOn

ANALYSIS OF EMPLOYEES ATTITUDE

TOWARDS

PERFORMANCE APPRAISAL(a case study in NM Infotech)

in the partial fulfillment of the award of degreeof Master of Business Administration

(Session: 2010-2011)

SUBMITTED TO: SUBMITTED BY:

MR. MANVINDER TANDON HARDEEP KAUR BHANDAL PROJECT GUIDE) MBA 2nd SEM

105082250099

RIMT Institute Of Management and Technology

Mandi Gobindgarh

ACKNOWLEDGEMENT

Research is an endless ocean and one requires guidance and support by several

individuals in order to derive out a hand full of pearls from its depth. It is

difficult to acknowledge so precious a debt as that of learning, as it is the only

debt that is difficult to repay except through gratitude.

I take the privilege to pay my deepest appreciation and heartiest thanks to all

my teachers of SSIT, whose constant guidance is unbounded source of

inspiration for us. I would like to express my sincere thanks to my Project

guide Mr. Manvinder Tandon who provided me valuable insights on my

topic and helped me to clearly chalk out my area of study.

Last but not the least; I would take the opportunity to thank my parents,

friends and all those visible and invisible hands that contributed to make this

project a success.

(HARDEEP KAUR)

EXECUTIVE SUMMARY

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.

As a dist inct and formal management procedure used in the

evaluation of work performance, appraisal really dates from the

t ime of the Second World War - not more than 60 years ago.

In many organizations - but not al l - appraisal results are used,

ei ther directly or directly, 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.)

The purpose of this study has been to determine whether the

performance appraisal was used for employee development and

whether the appraisal was emphasized as an important part of

the performance appraisal process. Also whether the

performance appraisal helps in increasing company’s

profitabil i ty.

Our study suggested that the performance appraisal has helped

in increasing the profitabil i ty of SAIL which was clearly shown

by their performance on BSE Sensex. Certain loop holes has

been determined and suggestions were made.

TABLE OF CONTENTS

S.NO TOPIC

1 INTRODUCTION OF THE COMPANY

2 INTRODUCTION OF THE TOPIC

3 OBJECTIVES OF THE STUDY

4 RESEARCH METHODOLOGY

5 DATA COLLECTION & ANALYSIS

6 FINDING OF THE STUDY

7 QUESTIONNARIE

8 CONCLUSION

9 SUGGESTIONS

10 BIBLOGRAPHY & REFERENCES

INTRODUCTION

OF

THE COMPANY

NM Infotech is one of the pioneers in the Indian Global market, established in

2002. NM Infotech a Growing software company in Mohali. It deals in

Software Product Development and provides services for all web application.

It offers differentiated technology and dedicated service support infrastructure

as per the needs and requirements of customers.

NM Infotech, the growing identity in Software Technology and Training, the

company is a dream of dedicated team of professionals who themselves have

grown up with the I. T. revolution. 6 Months industrial training provide in

Chandigarh, with quality faculty and great atmosphere for learning, Training

for the best JAVA Courses. Professionals in DOT NET, java, PHP , ERP.

Student are trained in live projects. NM Infotech is an organisation of

Designers, Devlopers and Analyst. your all web problems are sorted in NM

Infotech.

Mission of NM Infotech:

"To become the leading organization for ERP solutions and service providers

in the world".

Vision of NM Infotech:

To create total harmony with our associates through trust and total

understanding. To progress and strive for excellence through optimum

opportunities to personnel and seek avenues to benefit the community at large.

NM is a leading ERP solutions and Software Development organization in

India. We deliver products and services of the highest quality adding more

value to our customers enabling them to achieve their business objectives.

NM key to the success has been providing solutions blending with the right

technology and ensuring value for the money.

NM is working from last few years as a Information Technology Company

with annual turnover exceeding INR 14 million. NM has established itself as

one of the leading companies in India and has had a growth rate of over 70%

in the last two years.

This is a result of consistent contribution of its core team of developers and

trainers, the management group and the dedicated members who have

collectively worked for its present image and striving to further improvise its

services and education related fields.

Company services: Software Solutions Security Solutions Corporate Training Industrial Training Campus Training

Projects handled: Guest house management system ERP solutions Online grocery Cyber access control

PUNCH LINE

“Quality Speaks Itself”

INTRODUCTION

OF

THE TOPIC

EMPLOYEES ATTITUDE

"An employee’s attitude toward the job's importance and the company had the

greatest impact on loyalty and customer service then all other employee

factors combined.

MEASURING EMPLOYEE ATTITUDE

Organizations are increasingly interested in retaining right talents while

targeting for new talents; measuring employees attitude provides an indication

of how successful the organization is in fostering a conducive environment

which nurtures great attitude among employee’s towards their Job and

company .

Because attitude is basically a psychological state, care should be taken in the

effort of quantitative measurement, although a large quantity of research in

this area has recently been developed.

The usual measures of employee attitude involve an employee attitude survey

with a set of statements using a Likert Technique or scale. The employee is

asked to evaluate each statement in term of their perception on the

performance of the organization being measured. The surveys of this type

provides an understanding how the employee perceives the organization.

This project has been undertaken to analyze the employees attitude towards

performance and potential appraisal i.e. how employees perceive these

appraisals in the organization and the effect of these appraisals on the

productivity of employees in the organization.

PERFORMANCE APPRAISAL

Appraising the performance of individuals, groups, and organization is a

common practice of all the societies while in some instances, the appraisal

process is structured and formally sectioned, in other instances, the process is

informal and integral part of daily activities.

Once the employee has been selected, trained and motivated, he is then

appraised for his performance. Performance appraisal is the step where the

management finds out how effective it has been at hiring and placing the

employees. If any problems are identified, steps are taken to communicate

with the employees and to remedy them.

Performance appraisal is the process of obtaining, analyzing and recording

information about the relative worth of an employee. The focus of the

performance appraisal is measuring and improving the actual performance of

the employee and also the future potential of the employee. Its aim is to

measure what an employee does.

According to Flippo, “performance appraisal is the systematic, periodic and an

impartial rating of an employee’s excellence in the matters pertaining to his

present job and his potential for a better job."

Performance appraisal is a systematic way of reviewing and assessing the

performance of an employee during a given period of time and planning for

his future.

It is a powerful tool to calibrate, refine and reward the performance of the

employee. It helps to analyze his achievements and evaluate his contribution

towards the achievements of the overall organizational goals.

By focusing the attention on performance, performance appraisal goes to the

heart of personnel management and reflects the management’s interest in the

progress of the employees.

OBJECTIVES OF PERFFORMANCE APPRAISAL:

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

Helps to strengthen the relationship and communication between

superior – subordinates and management – employees.

To diagnose the strengths and weaknesses of the individuals so as to

identify the training and development needs of the future

OTHER TERMS WHICH ARE USED FOR

PERFORMANCE APPRAISAL;

PERSONNEL APPRAISAL

EMPLOYEE ASSESSMENT

PERFORMANCE RATING

EMPLOYEE EVALUATION & MERIT RATING

EMPLOYEE PERFORMANCE REVIEW

Performance appraisal means evaluating an employee’s current or past

Performance relative to the person’s performance standards. Appraisal

involves:

(I) Setting work standards

(ii) Assessing the employee’s actual performance relative to these standards

(iii) Providing feedback to the employees with the aim of motivating that

person to eliminate deficiencies or to continue to perform above par.

Managers usually conduct the appraisal using a predetermined and formal

method. Various methods of appraisal include:-

1) Traditional methods

2) Modern methods.

TRADITIONAL METHODS

1. ESSAY APPRAISAL METHOD

This traditional form of appraisal, also known as “Free Form method”

involves a description of the performance of an employee by his superior. The

description is an evaluation of the performance of any individual based on the

facts and often includes examples and evidences to support the information. A

major drawback of the method is the inseparability of the bias of the evaluator.

2. STRAIGHT RANKING METHOD

This is one of the oldest and simplest techniques of performance appraisal. In

this method, the appraiser ranks the employees from the best to the poorest on

the basis of their overall performance. It is quite useful for a comparative

evaluation.

3. PAIRED COMPARISON

A better technique of comparison than the straight ranking method, this

method compares each employee with all others in the group, one at a time.

After all the comparisons on the basis of the overall comparisons, the

employees are given the final rankings.

4. CRITICAL INCIDENTS METHODS

In this method of Performance appraisal, the evaluator rates the employee on

the basis of critical events and how the employee behaved during those

incidents. It includes both negative and positive points. The drawback of this

method is that the supervisor has to note down the critical incidents and the

employee behaviour as and when they occur.

5. FIELD REVIEW

In this method, a senior member of the HR department or a training officer

discusses and interviews the supervisors to evaluate and rate their respective

subordinates. A major drawback of this method is that it is a very time

consuming method. But this method helps to reduce the superiors’ personal

bias.

6. CHECKLIST METHOD

The rater is given a checklist of the descriptions of the behaviour of the

employees on job. The checklist contains a list of statements on the basis of

which the rater describes the on the job performance of the employees.

http://appraisals.naukrihub.com/

7. GRAPHIC RATING SCALE

In this method, an employee’s quality and quantity of work is assessed in a

graphic scale indicating different degrees of a particular trait. The factors

taken into consideration include both the personal characteristics and

characteristics related to the on-the-job performance of the employees. For

example a trait like Job Knowledge may be judged on the range of average,

above average, outstanding or unsatisfactory.

8. FORCED DISTRIBUTION

To eliminate the element of bias from the rater’s ratings, the evaluator is asked

to distribute the employees in some fixed categories of ratings like on a

normal distribution curve. The rater chooses the appropriate fit for the

categories on his own discretion.

Modern methods

In this method, an employee’s actual job behaviour is judged against the

desired behaviour by recording and comparing the behaviour with BARS.

Developing and practicing BARS requires expert knowledge.

HUMAN RESOURCE ACCOUNTING METHOD

Human resources are valuable assets for every organization. Human resource

accounting method tries to find the relative worth of these assets in the terms

of money. In this method the Performance appraisal of the employees is

judged in terms of cost and contribution of the employees. The cost of

employees include all the expenses incurred on them like their compensation,

recruitment and selection costs, induction and training costs etc whereas their

contribution includes the total value added (in monetary terms). The difference

between the cost and the contribution will be the performance of the

employees. Ideally, the contribution of the employees should be greater than

the cost incurred on them.


360 DEGREE FEEDBACK

360 degree feedback, also known as 'multi-rater feedback', is the most

comprehensive appraisal where the feedback about the employees’

performance comes from all the sources that come in contact with the

employee on his job.

360 degree respondents for an employee can be his/her peers, managers (i.e.

superior), subordinates, team members, customers, suppliers/ vendors - anyone

who comes into contact with the employee and can provide valuable insights

and information or feedback regarding the “on-the-job” performance of the

employee.

360 degree appraisal has four integral components:

1. Self appraisal

2. Superior’s appraisal

3. Subordinate’s appraisal

4. Peer appraisal.

Self appraisal gives a chance to the employee to look at his/her strengths and

weaknesses, his achievements, and judge his own performance. Superior’s

appraisal forms the traditional part of the 360 degree appraisal where the

employees’ responsibilities and actual performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the

parameters like communication and motivating abilities, superior’s ability to

delegate the work, leadership qualities etc. Also known as internal customers,

the correct feedback given by peers can help to find employees’ abilities to

work in a team, co-operation and sensitivity towards others.

Self assessment is an indispensable part of 360 degree appraisals and therefore

360 degree Performance appraisal have high employee involvement and also

have the strongest impact on behavior and performance. It provides a "360-

degree review" of the employees’ performance and is considered to be one of

the most credible performance appraisal methods.

360 degree appraisal is also a powerful developmental tool because when

conducted at regular intervals it helps to keep a track of the changes others’

perceptions about the employees. A 360 degree appraisal is generally found

more suitable for the managers as it helps to assess their leadership and

managing styles. This technique is being effectively used across the globe for

performance appraisals. Some of the organizations following it are Wipro,

Infosys, and Reliance Industries etc.


MANAGEMENT BY OBJECTIVES

The concept of ‘Management by Objectives’ (MBO) was first given by Peter

Drucker in 1954. It can be defined as a process whereby the employees and

the superiors come together to identify common goals, the employees set their

goals

to be achieved, the standards to be taken as the criteria for measurement of

their performance and contribution and deciding the course of action to be

followed.

The essence of MBO is participative goal setting, choosing course of actions

and decision making. An important part of the MBO is the measurement and

the comparison of the employee’s actual performance with the standards set.

Ideally, when employees themselves have been involved with the goal setting

and the choosing the course of action to be followed by them, they are more

likely to fulfill their responsibilities.

UNIQUE FEATURES AND ADVANTAGES OF MBO

The principle behind Management by Objectives (MBO) is to create

empowered employees who have clarity of the roles and responsibilities

expected from them, understand their objectives to be achieved and thus help

in the achievement of organizational as well as personal goals.

Some of the important features and advantages of MBO are:

Clarity of goals – With MBO, came the concept of SMART goals i.e.

goals that are:

Specific

Measurable

Achievable

Realistic, and

Time bound.

The goals thus set are clear, motivating and there is a linkage between

organizational goals and performance targets of the employees.

The focus is on future rather than on past. Goals and standards are set

for the performance for the future with periodic reviews and feedback.

Motivation – Involving employees in the whole process of goal setting

and increasing employee empowerment increases employee job

satisfaction and commitment.

Better communication and Coordination – Frequent reviews and

interactions between superiors and subordinates helps to maintain

harmonious relationships within the enterprise and also solve many

problems faced during the period.

Thus, when properly conducted, performance appraisal not only let the

employee know about how well he is performing but also influences the

employee’s future level of effort, activities, results and takes appropriate

direction. Under performance appraisal, not only the performance of an

employee is evaluated but also his potential for development.

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research methodology is the systematic method/process dealing with

identifying problem, collecting of facts or data, analyzing these data and

reaching at certain conclusion either in the form of solutions towards the

problem concerned or certain generalization for some theoretical formulation.

It also comprised of a number of alternative approaches and inter-related and

frequently overlapping procedures and practices. Since there are many aspect

of research methodology, the line of action has to be chosen from a variety of

alternative. The choice of suitable method can be arrived at through

assessment of objectives and comparison of various alternatives. Research

methodology used in the present study is as under:

Type of research: Present study is Descriptive in nature.

Sample Design: In most of the research studies, it become almost

impossible to examine the entire universe; the only alternative thus is to resort

to sampling. The present study is also of the same nature. According to

Manheim (1977), “a sample is a part of the population which is studied in

order to make inferences about the whole population.” Thus a good sample is

a miniature version of the population and good sample design involve the

following:

Sample Unit

Sampling Techniques

Sample Size

Sample Unit:

Since the objective of the present study was to analyze the employees attitude

towards potential and performance appraisal,thus employees of Thomson

press ar taken as sampling unit.

Sampling technique:

The procedure that a researcher adopts in selecting the unit for the sample is

known as sampling technique. In the present study, Non-probability sampling

has been used. Judgmental sampling has been used but utmost care has been

taken employees from all the profiles in the organization.

Sample Size:

The sample size was taken as 50. The 10 questionnaires were discarded

because of the incomplete information. Thus the effective sample size was 40.

Data collection method

Both primary and secondary data has been collected in this research.

Secondary data has been collected from journals, websites, and research

articles from magazines while the primary data has been collected through the

well-structures comprehensive questionnaire.

Thus the decisions were taken on the basis of following attributes: -

Data Source Primary data & secondary data.

Research approaches Survey

Research instrument Questionnaire

Sampling plan Sample size

Contract method direct interview

DATA COLLECTION

&

ANALYSIS

DATA COLLECTION

To make a decision in any business situation we need data. Facts expressed

in quantitative form can be termed as data. Success of any statistical

investigation depends on the availability of accurate and reliable data.

So the data can be classified either as primary data or secondary data.

PRIMARY DATA: It is the data, which is collected afresh for the

research study. This type of data is collected for the very first time by the

investigator himself and has never been used by any other person earlier. The

various methods of the collection of the primary data are as follows:

Questionnaire

Observation

Interviews

SECONDARY DATA: When the data is collected by one person and

used by the others for their research, this type of data is called secondary data.

The researcher uses the data for his research, which is already available or

collected by other. The various methods of collection of secondary data are as

follows:

Newspapers

Magazines

Reports & Journals

Internet

For this project, I have used both the types of data i.e. primary as well as

secondary data.

Primary Data used in this project are as follows:

Questionnaire filled by the employees.

Personal Interviews of the employees.

Secondary Data used in this project are as follows:

Reports of the organization.

Journals of the organization.

Internet (Website of the organization)

DATA ANALYSIS

1.) AWARENESS OF APPRAISAL SYSTEMS AMONG THE

EMPLOYEES IN THE ORGANIZATION.

Performance appraisal

Awareness of performance appraisal

YES87%

NO13%

YES NO

Potential appraisal.

Awareness of potential appraisal

49%13%

25%

13%

YES NO MODERATELY CANT SAY

ANALYSIS: In sample size of 40, 87% of the employees are fully aware of

performance appraisal in the organization but 13% of employees are not aware

of this while analysis of awareness of potential appraisal shows that 49%

employees are fully aware of the potential appraisal while 25% are somewhat

aware, 13% are not aware and cant say respectively.

INTERPRETATION:

This analysis shows that most of the employees are aware of the performance

appraisal in the organization but the awareness of potential appraisal of

employees in the organization is not very high.

This shows that potential appraisal being a newer concept is not known much

to the employees even when it is used by the employees generally before

giving promotions and new projects.

2.) UNDERSTANDING OF REASON OF USAGE OF THESE

APPRAISALS.

PERFORMANCE APPRAISAL:


62%13%

25%

YES NO SOMEWHAT

ANALYSIS:

In the sample 62% of the employees completely understand why it is used

in the organization while 25% of the employees understand it a little bit

but not completely and 13% of the employees do not understand why it is

used in the organization.

INTERPRETATION:

More than half of the employees understand why it is used in the

organization but still high percent of employees do not understand it so it

shows lack of communication with regard to appraisal in the organization.

3.) HOW MANY TIMES YOU HAVE BEEN APPRAISED LAST

YEAR?



37%

38%

25%

ONCE TWICE THRICE

ANALYSIS:

In the sample 25% are appraised thrice a year, 38% of them are appraised

twice and 37% are appraised once a year.

INTERPRETATION:

This analysis shows that all the employees undergo this appraisal once a

year and more than half of the employees undergoes this appraisal twice or

more in a year indicating that this is a regular affair in the organization.

POTENTIALAPPRAISAL:

Potential appraisal

62%

38%

0%

ONCE TWICE THRICE

ANALYSIS:

In the sample 62% of the employees are appraised once a year while 38%

says that they are appraised twice a year.

INTERPRETATION:

With the analysis it is concluded that potential appraisal is not as regularly

done in the organization as the performance appraisal although it is

conducted once a year for all the employees.

4.) WHO IS THE APPRAISER?



75%

25%

0%

SUPERIOR PEER TOP MANAGEMENT

ANALYSIS:

In the sample 75% of the employees performance are been appraised by

their superiors while 25% of the employees are appraised by their peers.

POTENTIAL APPRAISAL:

Potential appraisal

62%

13% 25%

SUPERIOR PEER SELF

ANALYSIS:

in the sample 62% of employees potential is been appraised by their

superiors while for 25% of the employees self appraisal technique of

potential appraisal is used and 13% employees are been appraised by their

peers for judging their potential.

INTERPRETATION:

Most of the employees potential is been appraised by the superiors and

about 25% of the employees are provided the opportunity to appraise

themselves this shows that a certain level of decentralization is their in the

organization which is essential for the success of the organization.

5.) FAIRNESS AND JUSTIFICATION OF THE APPRAISAL

PROCESS.



62%

0%

0%

38%

YES MODERATELY NO CANT SAY


Potential appraisal

12%

62%

13%

13%


ANALYSIS: In the sample almost employees sees the performance

appraisal as a fair and justified process and some don’t have any opinion

about the fairness of the process while the process of potential appraisal is

not seen as fair and justified process by the employees as performance

appraisal. Some of the employees see it as a unfair and unjustified process.

INTERPRETATION:

From the above analysis it can be concluded that the process of appraisal

of performance in the organization is perceived fair and justified while the

potential appraisal is not so fair and justified it is because the employer is

not able to completely find the potential of the employees and also the

less awareness of this appraisal process in the organization.

6.) DOES THESE APPRAISALS RESULTS IN MOTIVATION?

PERORMANCE APPRAISAL


74%

13%

0%

13%


POTENTIAL APPRAISAL

Potential appraisal

13%

62%

25%

0%


ANALYSIS: the performance appraisal process completely motivates

about 75% of the employees in the organization while the potential

appraisal process only moderately motivates about 62% of the employees

the organization and also about 25% of them are not at all motivated at all.

INTERPRETATION:

This analysis shows that the performance appraisal is more helpful in

motivating the employees while potential appraisal is able to motivate

employees only moderately. This shows that the employees performance is

properly realized and analysed in the organization while the employers are

unable to properly realize their potential i.e talents.

7.) DOES THESE APPRAISALS CREATE ANY ANXIETY OR

STRESS IN THE EMPLOYEES?



10%

21%

64%

5%


POTENTIAL APPRAISAL

Potential appraisal

5%

25%

55%

15%


ANALYSIS: from the sample study it is found that this appraisal does not

cause any anxiety or stress to most of the employees however about 30%

of the employees feel some mental stress and anxiety with these appraisals.

INTERPRETATION:

It is concluded that these appraisal are perceived by most of the employees

as necessary in the organization and they take these appraisals in a positive

manner.

8.) OUTCOME OF THE APPRAISALS?



25%

37%

25%

13%

PROMOTION JOB ENRICHMENT

JOB ROTATION NO CHANGE

ANALYSIS: in the sample about 37% of the employees get their job

enriched, 25% job rotation,25% promotion and 13% no change as a result

of their performance appraisal.

INTERPRETATRION:

Generally this performance appraisal results in job enrichment of

employees in the organization followed by promotion and job rotation.

POTENTIAL APPRAISAL

Potential appraisal

25%

62%

13%

NEW PROJECTS NO CHANGE CANT SAY

ANALYSIS: In the sample the potential appraisal results in no change for

more than half of the employees while some 25% of the employees get

new projects after their potential appraisals.

INTERPRETATION:

It is concluded that this potential appraisal is not resulting in more fruitful

results for the employees as they are already provided with the projects as

per their potential.

9.) LEVEL OF SATISFACTION AMONG EMPLOYEES WITH

THE RESULTS OF THE APPRAISAL?



13%

25%

0%

62%

YES NO CANT SAY MODERATELY


Potential appraisal

50%

0%

25%

25%

YES NO CANT SAY MODERATELY

ANALYSIS:

About 62% of the employees are moderately satisfied with the results of

performance appraisal while 50% of the emlployees are satisfied with the

potential appraisal.

INTERPRETATION:

Most of the employees are satisfied with the process of these appraisals in

the organization however level of satisfaction of potential appraisal is less

then the performance appraisal.

This appraisal also showing that employers are able to judge the potential

and performance of employees upto to a certain level thus leading them to

satisfaction.

10.) REGULARITY OF APPRAISAL

PERFORMANCE APRAISAL

PerformaNce appraisal

YES75%

NO25%

YES NO


Potential appraisal

75%

25%0%

YES NO

ANALYSIS: Out of the sample about 75% of the employees says that

these appraisals are regularly conducted in the organization.

INTERPRETATION:

It is concluded that these appraisals are a regular affair in the organization

as helping the organization to increase its effectiveness.

11.) EMPLOYER REALLY ABLE TO FIND OUT THE

POTENTIAL OF THE EMLOYEES TRULY?

Realisation of potential by employer

3%

84%

8%5%

ALWAYS SOMETIMES NEVER CANTSAY

ANALYSIS:

out of the sample about 84% of the employees feel that their potential is

realized completely sometimes only while 10% don’t have any opinion

whether their potential is realized completely by their employer or not.

INTERPRETATION:

As the potential is not been realized by the employers completely always

so there is a need of involving the employees also in this appraisal so as to

get more fruitful results of appraisal and realizing their potential to the

fullest so as to make the optimal use of the talent of available man power.

12.) NEW PROJECTS ARE GIVEN TO EMPLOYEES ON THE

BASIS OF WHICH APPRAISAL?

prefrence for assisgning new projects

38%

49%

13%

Potential Performance Both

ANALYSIS:

In the sample 49% of the employees are assigned on the basis of

performance appraisal while 38% of the employees are assigned new

projects on the basis of potential appraisal while 13% of the employees say

that both the appraisals are considered for assigning new projects.

INTERPRETATION:

Analysis shows that performance appraisal is been preferred by

employers for assigning new projects this is because of the lack of

awareness of potential appraisal benefits and also it is a newer concept

so preferred less.

13.) WHICH APPRAISAL IS A BETTER TECHNIQUE?

comparision of techniques

25%

50%

25%

Potential Performance Cant say

ANALYSIS:

Out of the sample 50% of the employees believe that performance

appraisal is a better technique while 25% believes potential appraisal is a

better technique and rest 25% can not say anything about which appraisal

technique is better.

INTERPRETATION:

Both the appraisals are equally important for the organization to attain the

objectives of the organization.

14.) EMPLOYEES OPINION ON WHICH APPRAISAL

TECHNIQUE SHOULD BE LAID MORE EMPHASIS ON?

Employees opinion

25%

37%

38%

POTENTIAL PERFORMANCE BOTH

ANALYSIS:

In the sample 38% of the employees believes that both the appraisals

should be emphasized equally while 37% of the employees says that

performance appraisal should be emphasized by employer and 25% of the

employees prefer potential appraisal to be emphasized by their appraiser.

INTERPRETATION:

Both the appraisals have their own benefits so most of the employees

believes that both the appraisals together should be emphasized for

appraising them.

15.) DO THESE APPRAISALS PROVIDE WITH THE UNBIASED

RESULTS?

Unbiasness in appraisal results

0%

62%

25%

13%

YES SOMETIMES NO CANT SAY

ANALYSIS:

In the sample 62% of the employees says that these appraisals provide

unbiased results sometimes only while 25% says that they did not get

unbiased results from these appraisals and 13% cant say anything.

INTERPRETATION:

There is a need to make these appraisals more transparent and fair so as to

increase the effectiveness of the organization.

16.) ESSENTIALNESS OF THESE APPRAISALS IN CREATING

WORK CULTURE OF COOPERATION AND TEAM WORK IN

THE ORGANISATION?

Essentiality in creating work culture

58%

14%

14%

14%


ANALYSIS:

In the sample 58% employees believes that these appraisals are essential

for creating a work culture of cooperation and team work in the

organization while 14% of the employees do not believe that it is essential.

INTERPRETATION:

This analysis shows that these appraisals are necessary for creating a work

culture of cooperation and team work.

17.) IMPACT OF THESE APPRAISALS ON THE DEVELOPMENT

OF ORGANISATION

Impact on organisation development

62%

30%

8%

POSITIVE NEUTRAL NEGATIVE

ANALYSIS:

In the sample 62% of the employees believe that these appraisals have a

positive impact on the development of the organization and 8% of the

employees believe that these appraisals create a negative impact on the

organization while rest 30% believes that these appraisals have no effect.

INTERPRETATION:

These appraisals are benefitial for the organization as it allows the

organization to achieve the goals in an effective manner.

18.) REALISATION OF TRAINING NEEDS FROM THESE

APPRAISALS?

Training needs

29%

67%

2%

2%

ALWAYS SOMETIMES NEVER CANTSAY

ANALYSIS:

In the sample 67% of the employees says that these appraisals sometimes

result in training needs and 29% says that there is always a need of training

been realized with these appraisals.

INTERPRETATION:

These appraisals are benefitial for the organization as they allow the

employers to find out the training needs so that they could take a timely

action.

19.) DOES COMPENSATION PACKAGE IS DESIGNED ON BASIS

OF THESE APPRAISALS?

relation b/w compensation design and appraisal

13%

38%

49%

0%

YES MODERATELY NO CANTSAY

ANALYSIS:

49% of the employees say that their compensation package is not related at

all with their appraisals while 38% believes that sometimes it is related and

13% of the employees believe that it is related with their appraisals.

INTERPRETATION:

These appraisals have no impact on the compensation package of the

employees.

FINDINGS

OF

THE STUDY

FINDINGS:

As evident from the data analysis various findings are as follows:

Awareness: most of the employees were aware of these appraisals

but the level of awareness of performance appraisal is higher than

potential appraisal.

Understanding: although employees know about these appraisals

but very few completely understands why these appraisals are done

and used in the organization.

Regularity: These appraisals are regularly conducted in the

organization.

Motivation: these appraisals helps in motivating the employees

thus are beneficial for both the employees and organization

Satisfaction: employees are satisfied with the results of these

appraisals but this satisfaction level is not as desired so there is a

need to make these appraisals more fair and justified.

Potential appraisal being a newer concept is not preferred much

as performance appraisal because of the lack of awareness of this

appraisal technique.

These appraisals help the organization to find out the training needs

in the organization.

These appraisals are also creating a work culture of cooperation

and team work in the organization thus impacting the organization

development in a positive manner.

These appraisals are not considered much while designing the

compensation package of employees.

Employees want that both the appraisals should be given equal

weightage for appraising an employee.

There is a need of making these appraisals more fair and justified

so as to achieve unbiased results.

Employers are not able to realize the employee’s potential fully

through these appraisals so more communication and participation

of employees in these appraisals is required.

These appraisals are not creating any mental stress or anxiety in the

employees even when it is not motivating the employees.

These appraisals are very essential for the effective working of the

organization.

CONCLUSION

CONCLUSIONS

In a nutshell, the analysis of the data collected from the sample revealed that

the employees have a positive attitude towards the conductance of these

appraisals, they believe that these appraisals are necessary in the organization

for creating a work culture of team work and cooperation and to attain the

organizational objectives effectively.

Also the employees want a more effective appraisal system that is they want

that their participation should be their and these appraisals should be more

transparent and fair.

Out of the two appraisal systems viz. performance and potential appraisal

there is still more emphasis laid by the organizations although potential

appraisal is a future oriented approach its lack of awareness and it being a

newer approach it is been resisted by some in the organization but because of

the benefits which this appraisal will yield employers are moving towards

making a balance between the two appraisals in the organization.

SUGGESTIONS

SUGGESTIONS

There is a need of creating more awareness about potential

appraisal as it being a future oriented approach can yield better

results for the organization.

The employers must relate the designing of the compensation

package with the result of their appraisals as this will help in

increasing the employees motivation level and also will result in

better performance of their job.

These appraisals need to be done with utmost care as they help the

organization to optimally utilize their man power.

These appraisals should also be used in succession planning of

employees of the organization.

Potential appraisal should also be done regularly as performance

appraisal in the organization.

Employees’ participation in these appraisals should be there as it

will allow them to attain success.

There should be a better communication among employees and

appraiser so that these appraisals could result n unbiased and fair

results.

The employers must use these appraisals as a tool for motivating

employees to make them more effective.

A proper feedback must be given to employees so that they can

take the required actions for improving their performance and

potential to the desired level.

QUESTIONNARIE

QUESTIONNAIRE

1) NAME

2) DESIGNATION

3) AGE GROUP20-30 30-40 40-50 50-60

4) Do you know what performance appraisal is?YES NO

5) Do you understand why it is used?YES SOMEWHAT NO

6) How many times you have been appraised last year?ONCE TWICE THRICE MORE

7) Who appraises your performance?TOP MANAGEMENT PEERS SUPERIORS

8) Do you feel that the process is fair and justified?YES MODERATELY NO CAN’T SAY

9) Does the process of performance appraisal motivate you in any way?YES MODERATELY NO CAN’T SAY

10) Does this appraisal create anxiety or mental stress to you?YES MODERATELY NO CAN’T SAY

11) What is the outcome of the appraisal?PROMOTION JOB ENRICHMENTJOB ROTATION NO CHANGE

12) Do you feel satisfied with the results?YES MODERATELY NO CAN’T SAY

13) Is this appraisal a regular affair in your organization?

YES NO

14) Who appraises your potential?SUPERIOR PEER Self

15) How many times you go through the process in a year?ONCE TWICE THRICE MORE

16) Do you feel the process is fair and justified?YES MODERATELY NO CAN’T SAY

17) Does this process of performance appraisal create mental stress oranxiety in you?

YES MODERATELY NO CAN’T SAY

18) Do you feel satisfied with the results of appraisal?YES MODERATELY NO CAN’T SAY

19) What you feel is a better technique of appraisal?POTENTIAL PERFORMANCE CANT SAY

20) Which technique according to you should be laid more emphasis on byyour employer?

PERFORMANCE POTENTIAL BOTH EQUALLY

BIBLIOGRAPHY

BIBLIOGRAPHY & REFERENCE

WEBSITES

http://appraisals.naukrihub.com

www.googlesearch.com

www.fdu.edu/admin.com

www.openlearning.com

www.thomsonpress.com

BOOKS

Luthans, Fred, Organizational behavior, McGraw Hill Book Company,

Singapore.

Memoria C.B., Personal Management, Himalaya Publishing House,

Bombay.

Robbins Stephen, P. 1993 Organizational Behavior, Prentice-Hall of India

Private Limited, New Delhi.

Davis, K., Organizational Behavior.

http://www.thomsonpress.com/

http://www.openlearning.com/

http://www.fdu.edu/admin.com

http://www.googlesearch.com/


Documents

Analysis of Employees Attitude Towards Potential & Performance Appraisal