Ankitaa Final College

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Executive Summary

IFFCO-Tokio General Insurance (ITGI) was incorporated on 4th December 2000 with a

vision of being industry leader by building customer satisfaction through fairness,

transparency, and quick response. It is a joint venture between the Indian Farmers Fertilizer

Co-operative (IFFCO) and its associates and Tokio Marine and Nichido Fire Group, the

largest listed insurance group in Japan.

The study is divided into 2 parts .the first part mainly involves studying and analyzing the

current performance appraisal system and identifying the gaps between the current state and

the desired-in-state. The general methodology adopted for study was primarily collection of

primary data; Survey based. Some secondary sources like company records, manuals, books,

accounting and internet were also tapped.

The second part involves designing a more effective performance appraisal system. The effort

involved designing a guide book on performance appraisal, which throws light on the critical

area of managing human performance.

The scope of the project involved defining and designing performance appraisal system,

devising feedback system, motivating and rewarding performance, employee career growth

and development and studying the implications of an effective performance appraisal system

on organization’s performance.

Effectively managing performance appraisal has never been more critical then in today’s

dynamic business environment. In order to drive increased productivity managers must

consistently monitor team performance and provide meaningful feedback to their

subordinates. Employees must be constantly aware of their progress as the expectations for

their contributions evolve. Finally, visibility to employee accomplishments and areas of

weaknesses should be used by managers to provide coaching and guidance to their

subordinates. The reality is that without adequate performance appraisal tools, any and all of these requirements are difficult to fulfill.

The performance appraisal application allows for an ongoing meaningful feedback

mechanism between managers and their subordinates. It helps transform the often rushed and

tedious once-a-year performance review into an ongoing performance appraisal process that

ties employee performance to bottom line business results. Most importantly, the improved

effectiveness of the overall process has been proven to increase employee morale and overall

productivity.



OBJECTIVES OF THE STUDY

PRIMARY

To study the performance appraisal of employees

SECONDARY

To study the purpose of performance appraisal

To understand the opinion of employees towards performance appraisal

To identify the effect of performance appraisal on individual development.



CHAPTER- 1

INTRODUCTION

COMPANY’S PROFILE

IFFCO TOKIO is one of the leading insurance companies of India. It offers products and

services to the individuals to make their life simplified and easy.

It was initiated in December 4, 2000, IFFCO-Tokio General Insurance (ITGI) Company is a

cooperative undertaking by the Indian Farmers Fertilizer Co-operative (IFFCO) and its

associate and Tokio Marine and Nichido Fire Group (the largest listed insurance group in

Japan), to deal in the insurance sector of India. With a wide network of 51 'Strategic Business

Units' and 110 offices all over India, the company serves its customers and potential

customers, with an array of uniquely customized policies. It covers each stratum of the

society, right from farmers to India's largest automobile manufacturers.

It has its head office at Gurgaon, Haryana. It is counted amongst the three leading privateinsurance companies.

Though the company started with a modest initial GWP (Gross Written Premium) of Rs.

2130 millions (in 2001-02), IFFCO-Tokio General Insurance Company today has progressed

ahead to boasts of Rs 12350 Million as GWP (2007-08). It is also the only company to own

its distribution channel called IFFCO-TOKIO Insurance Services Ltd (ITIS). Talking about

ITIS, the company has a staff of over 1000 employees spread across 200 towns in India. It

conducts various customer satisfaction surveys semi annually, to determine its operational

efficiencies. It is the only insurance company that made profit for five consecutive years.

Indian Farmers Fertilizers Co-operative Ltd. (IFFCO) is well known as a pioneer in large

scale fertilizer manufacturing and is a leading fertilizer producer in the country. IFFCO has a

membership of about 35,000 cooperatives at the State, District and Primary level spread in 22

States and 2 Union territories. The manufacturing plant at Kalol, Kandla, Phulpur and Aonla

has been consistently operating at a capacity utilization of more than 100% for the past

several years.



The Tokio Marine and Fire Insurance Company Ltd has over hundred and twenty years of

experience in general insurance business and is the largest and oldest general isurance

company of Japan. It is a member of large and diversified Mitsubishi group comprising over

1500 companies. It is ranked the world’s fifth largest insurance company, based on net

premium. The company is rated AA (strong financial security characteristics) by the

international rating agency Standard and Poor’s. Tokio Marine has been continuously serving

as one of the nationalized Indian insurance market.

Flexibility, Integrity, Quantity, these are the three words that describe our organization. We

bring you a wide range of general insurance products with the Flexibility to suit your

requirements, the integrity of our teams and the Quality of service rendered to all our

customers. We believe that your trust in us is the most valued possession, which is constantly

reinforced by our outstanding performances in times of need. Our strong parentage ensures

uncompromised delivery to our customers at surprisingly fast response times.

Mission:

To win the trust of individuals, trade, industry, commerce and to protect citizens, corporate,

cooperative and international investors in India.

Vision:

To be the industry leader by building customer satisfaction through fairness, transparency an

quick response; providing innovative products and services to suit every customer’s need;

being technology driven, cost conscious and price competitive; creating a niche in rural

segment.

Product Philosophy

The product development team at ITGI is constantly working to introduce products which are

competent in meeting the customer needs. They emphasize on understanding the need from



the market and offering the best possible products across the product lines. They approach the

market with products that have differentiated features / benefits / service offerings. IFFCO

Tokio offers a wide range of uniquely customized policies covering a wide range of

customers, from farmers to some of India's largest automobile manufacturers.

The endeavour is to spread the benefits of insurance to the masses through their specially

designed insurance products like Sankat Haran Yojana, Barish Bima Yojana, etc. The

company has made a genuine attempt to understand the rural and low-income segment of the

Indian market, to tap the potential of this largely unexplored segment and make the benefits

of insurance available to the masses.

They are also making constant efforts to reach out the entire general insurance spectrum i.e.

Commercial Lines, Retail lines and Specialty Lines. Innovations will keep on expanding to

include customized offerings for various market segments and geographies.

This company offers a wide range of products and policies. The products can be categorized

under three broad heads:

Specialty, Retail and Commercial

Products & Services

Commercial Line

• Standard Fire & Special Perils

• Consequential Loss

• Contractors All Risk

• Contractors Plant & Machine

• Boiler & Pressure Plant

• Erection All Risks

• Industrial All Risks

• Machinery Breakdown

• Machinery Loss of Profit

• Product Liability

• Public Lia Industrial



• Public Lia Non-Industrial

• Marine Cargo

• Electronic Equipment

• Bankers Blanket

• Burglary Insurance

• Fidelity Guarantee

• Money Insurance

• Workmen's Compensation

Retail Line

•

Motor Private Car • Motor Cycle/Scooter

• Home & Family Protector

• Trade Protector

• Industry Protector

• Office Professional Establishment

• Home Suvidha

• Individual Medishield

• Individual Personal Accident

• Group Personal Accident

• Critical Illness Policy

Specialty Line

• Credit Insurance

• Multi Modal transport (MTO)

• Marine Hull & Machinery

• Jeweler’s Block

• Barish Bima Yojna (Weather Insurance)

• Sagar Bandhu Bima Policy

•Aviation Insurance Policy

• Errors and Omissions (Technology) Policy



• Fine Art Insurance - Private Collectors

• Fine Art Insurance - Art Dealers & Gallery Owners

Operating offices of IFFCO TOKIO are spread all over the country. Some of the places,

where it is located are Ahmadabad, Aurangabad, Agra, Allahabad, Akola, Belapur, Bhopal,

Bhuvaneshwar, Bangalore, Bellary, Coimbatore, Chennai, Chandigarh, Dehradun, Delhi,

Faridabad, Maninagar, Nasik, Faizabad, Vadodara, Khandwa, , Kochi, Gurgaon, Kolkata,

Lucknow, Hyderabad, Indore, Mumbai, Nagpur, Noida, Pune, Surat, Udaipur, Haldwani,

Jalandhar, Hubli, Gwalior, Vapi, Madurai , Patiala, Varanasi, Jabalpur, Jaipur, Ludhiana,



CHAPTER-2

OVERWIEW OF PERFORMANCE APPRAISAL

Since organizations exist to achieve goals, the degree of success that individual employees

have in reaching their individual goals is important in determining organizational

effectiveness. The assessment of how successful employees have been at meeting their

individual goals, therefore, becomes a critical part of HRM. This leads us to the topic of

performance appraisal.

People differ in their abilities and aptitudes. These differences are natural to a great extent

and cannot be eliminated even by giving the same basic education and training to them. There

will be some differences in the quality and quantity of work done by different employees

even on the same job. Therefore, it is necessary for management to know these differences so

that the employees having better abilities may be rewarded and the wrong placements of

employees may be rectified through transfers. The individual employee may also like to know

the level of his performance in comparison to his fellow employees so that he may improve

on it.

Thus, there is a great need to have suitable performance appraisal system to measure the

relative merit of each employee.

The basic purpose of performance appraisal is to facilitate orderly determination of an

employee’s worth to the organization of which he is a part. However, a fair determination of

the worth of an employee can take place only by appraising numerous factors some of which

are highly subjective, as for instant, attendance, while others are highly subjective, as for

instant, attitude and personality. The objective factor can be assessed accurately on the basis

of records maintained by the Human resource or personnel Department, but there is no device

to measure the subjective factor precisely. Notwithstanding this, appraisal of these factors

must be done to achieve the full appreciation of every employee merit.



WHAT IS PERFORMANCE APPRAISAL?

Performance appraisal goes by various names such as performance evaluation, progressrating, merit rating, merit evaluation, etc. But in this chapter, we shall use the terms

performance appraisal and merit rating to denote the appraisal of the performance of the

employees of an organization.

Performance appraisal means systematic evaluation of the personality and performance of

each employee by his supervisor or some other person trained in the techniques of merit

rating. It employs various rating techniques for comparing individual employees in a work

group, in term of personal qualities or deficiencies and the requirements of their respective

jobs. To quote dale Yoder,” performance appraisal includes all formal procedures used to

evaluate personalities and contribution and potential of group members in a working

organization. It is a continuous process to secure information necessary for making correct

and objective decisions on employees.” The comparison of performance with job

requirements helps in finding out the merit of individual employees in a week group.

Supervisor or an independent appraiser may do rating. Performance appraisal is a formal

programme in an organization, which is concerned with not only the contribution of themembers who form part of the organization, but aims at spotting the potential also. The

satisfactory performance is only a part of the system as a whole and the management needs

more information than mere performance ratings of the subordinates. There are no two

opinions about the necessity of performance appraisal, which can meet requirements of the

management to achieve the organizational goals. Performance appraisal is the systematic

evaluation of the individual with respect to his performance on the job and his potential for

development. Performance appraisal is concerned with determining the differences among the

employees working in the organization. Generally, the individual’s immediate superior in the

organization and whose performance is reviewed in turn by his superior does the evaluation.

Thus, everyone in Performance appraisal employs rating techniques for comparing individual

employees in the work group, in terms of personal qualities or deficiencies and the

requirements of their respective jobs.



Purpose of Performance Appraisal

The objective of performance appraisal fall in two categories:

1) Administrative; and

2) Self-improvement

1) ADMINISTRATIVE OBJECTIVES

a) Promotions

This is the most important administrative use of performance appraisal. It is to the common

interest of both the management and employees to promote employees onto position where

they can most effectively utilize their abilities. It is mismanagement to promote employees

into position where they cannot perform effectively at the time in question. A properly

developed and administered performance appraisal system can aid in determining whether

individuals should be considered for promotions. The system must rate the ratee for the

present job and his potentialities for the higher job. A person performing the job well does not

necessarily mean that he is fit for promotion.

b) Transfers

In an organization, it may be necessary to consider various types of personnel actions such

as transfer, layoffs, demotions and discharges. In some cases, such actions are called for

because of unsatisfactory performance while in other cases it may be called for due to

economic conditions over which the organization has no control because of changes in

production process. Such actions can be justified if they are based on performance

appraisal.



c) Wage and Salary Administration

In some cases, the wage increases are based on the performance appraisal reports. In some

cases, appraisals and seniority are used in combination.

d) Training and Development

An appropriate system of performance appraisal can be helpful in identifying the areas of

skills or knowledge in which certain employees are not up to par, thus pointing out general

training deficiencies which presumably should be corrected by additional training,

discussions, or counseling. Performance appraisal can also help in spotting the talented

employees so as to train and develop them to create an inventory of executive skills. It can

also provide the areas where the employees/executives could be further trained and

positioned to meet retirement and expansion situations.

e) Personnel Research

Performance appraisal helps in research in the field of personnel management. Various

theories in human relationship are outcome of efforts to find out the cause and effect

relationship between the personnel and their performance.

2) SELF IMPROVEMENT OBJECTIVES

The performance appraisals bring out the deficiencies and shortcomings of the employees.

Performance appraisal helps human resource development in a way. A promotion minded

individual could ask for the target programmes of a position he seeks and use the

information given by performance appraisal to prepare him for the job and enhance his

candidacy.



Performance appraisal also helps to spot out a person’s ability to see an organization

problem, devise ways of attracting it, translate his ideas into action, incorporate new

information as it arises and carry his plans through the results. It highlights a sort of total

managerial action in contrast to things they customarily factor out as conceptual entities-

things such as planning function, leadership ability, or financial knowledge. The

manager’s selection will often be improved by this emphasis on the whole managerial job.

Why Performance Appraisal?

The important reasons or benefits, which justify the existence of a system of performance

appraisal in an enterprise, are as under:

A good system of performance appraisal helps the supervisor to evaluate the

performance of his employees systematically and periodically. It also helps to assign

that work to individual for which they are best suited.

Performance rating helps in guiding and correction of employees. The supervisor may

use the results of rating for the purpose of constructively guiding employees in the

efficient performance of work.

The ability of the staff is recognized and can be adequately rewarded by giving themspecial increments.

Performance appraisal can be used as a basis of sound personnel policy in relation to

transfers and promotions. If the performance of an employee is better than others, he

can be recommended for promotion, but if a person is not doing well in a job, he may

be transferred to some other job.

Ratings can be used to evaluate the effectiveness of training programmes. Merit rating

reveals weaknesses of employees and the training programmes can be modifiedaccordingly.

Performance appraisal provides an incentive to the employees to better their

performance in a bid to improve their rating over others.

Systematic appraisals will prevent grievances and develop confidence amongst the

employees if they are convinced of the impartial basis of evaluation. The record of

merit rating is available in permanent form to protect the management against

subsequent charges of discrimination, which might be leveled by the trade unionleaders.



Performance Appraisal has a beneficial effect on both the persons doing the appraisal

and being appraised. The appraisal brings prominently to the attention of supervisors

or executives the importance of knowing their subordinates as human being. The

necessity of performance appraisal leads the appraiser to a thoughtful analysis of

people rated and tends to make him more alive to opportunities and responsibilities in

developing the subordinates. The objective of appraisal is to derive the point to the

appraisee without inviting his resentment or drawing back into the shell or taking

defensive attitude.

METHODS OF PERFORMANCE APPRAISAL

THERE ARE VARIOUS METHODS OF MERIT RATING MAY CLASSIFIED INTO:

1) Traditional Methods and

2) Modern Methods.

1) Traditional Methods

Traditional methods are very old technique of performance appraisal. They are based on trait-

oriented appraisal. Evaluation of employees is done on the basis of standards of personal

traits or qualities such as attitudes, judgment, versatility, initiative, dependability, leadership,

loyalty, punctuality, knowledge of job, etc.

There are seven traditional methods of appraisal. They are:

Unstructured appraisal.

Employee ranking.

Forced distribution.

Graphic – rating scales.

Check – lists.

Critical incidents.

Field review.



• Unstructured Appraisal

Under this, the appraiser is required to write down his impression about the person being

appraised in an unstructured way. However, in some organizations, comments are required to be grouped under specific headings such as quality of job performance, reasons for specific

job behaviors, personality traits, and development needs. This system is highly subjective and

has its merit in its simplicity and is still in use especially in the small firms.

• Ranking Method

Ranking is a simple process of placing in a rank according to their job performance. It

permits comparison of all employees in any single rating group regardless of type of work.

All workers are judged on the same factors and they are rated on the overall basis with

reference to their job performance instead of individual assessment of traits. In this way, the

best in placed first in the rank and the poorest occupies the last rank. The difficulty of this

system is that the rater is ranked to consider a whole person. Subjectively of the appraiser

may enter into his judgments. Asking the appraiser to rank employees on certain desirable

traits can reduce the subjective ness in this method. The other difficulty with this method is

that it does not indicate the degree of difference between the first man and the second man,

and so on.

• Forced Distribution Method

Some appraisers suffer from a constant error, i.e., they either rate all workers as excellent,

average or poor. They fail to evaluate the poor, average or excellent employees clearly. The

forced distribution system is devised to force the appraiser to fit the employees being

appraised into predetermined ranges of scales. It has an advantage over the paired comparison

system in that two or more employees can be given equal ratings. This system is based on the

presumption that employees can be divided into five point’s scale of - outstanding, above

average, average, below average and poor. In this system, the appraiser is asked to distribute

the employees into these categories in such a way that about 10% of the men are in group

‘outstanding’, 20% ‘above average’, 40% ‘average’, 20% ‘below average’, and 10%

‘poor’.This method obviously eliminates the room for subjective judgment on the part of



supervisors. This system is easy to understand and administer. The objective of this technique

is to spread out ratings in the form of a normal distribution, which is open to criticism.

• Graphic Rating Scales

Under this method, scales are established for a number of specific factors and qualities. Five

degrees are established for each factor and general definitions appear at points along the

scale. Generally, the rater is supplied with a printed form, one for each person to be rated.

The selection of factors to be measured on the graphic rating scale is an important point under

this system.

There are two types:

1. Characteristics, such as initiative and dependability, and

2. Contributions, such as quantity and quality of work.

Since certain area of job performance cannot be objective measured, it is likely that graphic

scales will continue to use a mixture of both characteristics and contributions.

Graphic scales impose a heavy burden upon the supervisor. He must report and evaluate the

performance of his subordinate on scales involving as many as five degrees on perhaps ten

different factors. The main drawback of this system is that the rater may be biased. However,

one means of ensuring that the rater has based his scoring upon substantial evidence is to

leave space on the form after each factor and require him to explain the reason for his rating.

In effect, he is asked to give example of the ratee’s behavior that justifies the assigned rating.

A supervisor may tend to rate him men high to avoid criticism from them.

The graphic rating method is easy to understand and easy to use. It permits the statistical

tabulation of scores in terms of measures of central tendency, skew ness and dispersion. It

permits a ready comparison of scores among employees. The scores presumably reveal the

merit or value of every individual. However, this method has certain serious drawbacks.

There is an implication that a high score of one factor can compensate for a low score on

another. If a man scores for attendance, attitude, cooperativeness, etc. Frequently, the rating

tends to cluster on the high side under this system. A supervisor may tend to rate his men

high so that they may receive high share of pay raises in some cases.



• Check Lists

It also consists of two techniques:

a) Weighted check list, and

b) Forced choice.

a) Weighted Check List:

Under this method, various statements are prepared in such a manner that they describe

various types and levels of behavior for a particular job. Each statement is attached with a

scale value. At the time of rating the employees, the supervisor just collects and checks all the

statements. After the weights and values are attached to the individual traits, the rating up to

this level is gathered on the rating sheet. Then the weights are averaged and employee is

evaluated. The weighted check – the persons thoroughly acquainted with job and perfect at

preparing and weighing statements should prepare list. When this process is over, rating is

placed on separate cards. Then raters who actually observed the accomplishment of the work

sort these cards. They rank the employee from poor to excellent. Weights are then assigned to

the statements in accordance with the way they are ranked by the raters.

b) Forced Choice

This method is used particularly with the objective of avoiding scope for personal prejudices.

Under this method, the rater is forced to choose between descriptive statements of seemingly

equal worth describing the person in question. Statements are chosen of both the sides

(favourable as well as unfavourable). For example, the following two pairs of statement from

each pair that is represented by supervisor.

a) Gives clear instructions to his subordinate.

b) Can be dependent upon to complete any job assigned.

c) Makes promises that he knows he cannot keep.

d) Shows favouritism to some employees.



The rater may feel that neither of the two statements in a pair is applicable, but he must select

the one that is more descriptive. Only one of the statements in each pair is correct in

identifying the better performances and this scoring key must be kept secret from raters. In

this way, bias removed from the appraisal process. The main advantage of establishing this

system of performance appraisal is that it has greater objectivity than most other methods.

• Critical Incident Method

A critical incident means a significant act by an employee exceeding or failing any of the

requirements of his job. It represents an exceptional behaviour of an employee at work, as for

instance, Resisted the implementation of change; Became upset over work; Refused to help a

fellow worker; Suggested an improvement in the work method’ Tried to get a fellow worker

to accept the management decision; Welcome new ideas. This method requires every

supervisor to record all such significant incidents in each employee’s behaviour, which

indicate effective or successful action and those, which indicate ineffective or poor behaviour.

These are recorded in a specially designed notebook, which contains categories or

characteristics under which various behaviours can be recorded. Examples of such type of job

requirements of worker a are judgment, learning ability, productivity, dependability, accuracy

of work, responsibility and initiative. Daily recording of these items seems to be essential

because, otherwise, the supervisor may forget the incidents with his subordinates. This

method suffers from the defect that outstanding incident happens so frequently that

individual’s appraisal may not vary markedly between any two time periods. It has been

observed that most of the time the employees have neither positive nor negative incidents. If

the critical event does not happens’ it will be difficult to rate an employee. Moreover, it may be difficult for a supervisor to decide what the critical or exceptional incident is. To rectify

this defect, Gerald Whitlock designed a specimen checklist, which consists of a number of

behaviour incidents, which are considered to be an example of - uncommonly, ineffective, or

effective job behaviour. The usual procedure in constructing the specimen checklist is to

collect behaviour incidents from certain experts in this area. The number of such performance

behaviours ranges from 80 to 150 incidents, equally divided between effective and ineffective

specimens.



• Field Review Method

Under this method, an expert from the personnel department interviews the supervisors. The

expert questions the supervisor to obtain all the pertinent information on each employee and

takes notes his notebook. Thus, there is no rating form with factors or degrees, but overall

ratings are obtained. The workers are usually classified into three categories - outstanding,

satisfactory and unsatisfactory. The interviewer questions the supervisor about the

requirements of each job in his unit and about the performance of each man in his job. He

probes to find out only how a man is doing but also why he does that way and what can be

done to improve or develop him. The supervisor is required to give his opinion about the

progress of his subordinates, the level of performance of each subordinate, his weaknesses,

good points, outstanding ability, promotion ability, and the possible plans of action in cases

requiring further consideration. The questions are asked and answered verbally.The success

of field review method depends upon the competence of the interviewer. If he knows his job,

he can contribute significantly to accurate appraisal.

Criticism of Traditional Methods:

The general criticism of traditional performance appraisal systems is that they are two

subjective in nature because all of them are on personal judgment of the rater. The personal

judgment is always subjected to personal bias or prejudice as well as pressure from certain

other areas. The appraiser may not be able to judge the competence of the employees because

of lack of training.

Because of the judgment role of the supervisors under the traditional system, performance

ratings are frequently subject to a number of errors and weaknesses, which are discussed

below:

Halo Error: This type of error occurs when the rater allows one aspect of a man’s

character or performance to influence his entire evaluation. It is the tendencies of

many raters to let the rating they rating to one characteristic excessively influence

their rating on all subsequent characteristics. Many supervisors tend to give an

employee approximately the same rating on all factors. The error can be recognized

quite easily on factors scales. The rating scale technique of performance appraisal is



particularly susceptible to the halo supervisor judge all of his subordinates on a single

factor or trait before going to the next. In this manner, he can consider all of the men

relative to a standard or to each other on each trait.

Central Tendency: This error occurs when the rater is in doubt about the

subordinates or has inadequate information about them or is giving less attention and

effort to the rating process. Because of these reasons, generally the raters are reluctant

to rate people at the outer ends of the scale. The rater knows that he has to appraise his

subordinates at periodic intervals but if he is unfamiliar with some of the subordinates

or does not have sufficient time to devote to the rating process, he may play it safe by

neither condemning nor praising. So he may rate them ‘average’. It is possible for thistype of rating i.e., all average to be a true rating, but its probability is less than its

frequency.

Leniency or Strictness: Some supervisors have a tendency to be easy raters and

others have a tendency to be harsh in their ratings. Lenient or easy raters assign

consistently high values or scores to their subordinates and strict or harsh raters give

consistently low ratings. Both the trends can arise from varying standards of performance among supervisors and form different interpretations of what they

observe in employee performance.

Recent Behavior Bias: Often some raters evaluate persons on the basis pf their

performance in recent few weeks; average behavior is not checked. Some employees

being aware of this tendency show better results when they feel that they are being

observed and the report of their performance is to be compiled soon.

Miscellaneous Biases: In many cases, the rater may give higher ratings because he

thinks that it would look bad for him if employees in the other department received

higher pay increases than his pay. Supervisors will tend to rate their subordinates near

the middle of the spectrum if their bosses put pressure on them to correct the worker’s

average rates or to get rid of the subordinates. Some supervisors show bias against

members of the opposite sex or of another caste, religion or nationality. They also



give higher ratings to senior employees because they are too ready to admit that they

have not improved under their leadership. Many a times, a rater is influenced by

organizational positions and may give higher ratings to those holdings the higher

positions.

2) Modern methods

There are two important methods of performance appraisal, which are used by the modern

concerns. The first is management by objectives, which represents result-oriented

appraisal. The second is behaviorally anchored rating scale, which is based on the

behaviour of the subordinates.

• Management by objectives

It was peter drucker who proposed goal setting approach to performance appraisal, which he

called “management by objectives and self-control”. Douglas McGregor further strengthened

this approach. He was concerned with the fact that most traditional appraisal systems

involved rating of traits and personal qualities that he felt were highly unreliable. Besides, the

use of such trait ratings produced two main difficulties: -

a) The manager was uncomfortable about using them and resisted making appraisal.

b) It had a damaging effect on the motivation and development of the subordinates.

Goal setting approach or “management by objectives” (MBO) is the same as behavioral

approach to subordinate appraisal, actually called “Work planning and review” in case of

General Electric Co., USA. Under this approach, an employee is not appraised by his

recognizable traits, but by his performance with respect to agrees goals or objectives. The

application of goal setting approach to performance appraisal involves the following steps:

1) The subordinate discusses his job descriptions with his superior and they agree on the

contents of his job and the key results areas.

2) The subordinate prepares a list of reasonable objectives for the coming period of six to

twelve months.

3) He sits with his superior to discuss these targets and plans, and a final set is worked out.



4)Check – points are established for the evaluation of progress, and the ways of measuring

progress are selected.

5) The superior and the subordinate meet at the end of the period to discuss the result of the

subordinate’s efforts to meet the targets mutually established.

The goal setting approach has done away with the judgmental role of the superiors in the

appraisal of their subordinates. It has led to greater satisfaction, greater agreement, greater

comfort and less tension and hostility between the workers and the management. This

approach is considerably superior to the traditional approach of performance appraisal. It

emphasizes training and development of individuals. It is problem-solving approach rather

than tell and sell approach. This approach has also got a built – in device of self – appraisal

by the subordinates because they know their goals and the standards by which their

performance will be measured.

The Goal setting approach suffers from the following limitations:

The subordinates can apply this approach only when the goal setting is possible. It is

doubtful if such a procedure can be applied for the blue colour workers.

This approach is not easy to administer. It involves considerable time, thought and the

superior and the subordinate. If the span of supervision is quite large, it will not be

possible for the superior to have discussion with each and every subordinate for

setting up mutually agreed goals.

This approach mainly emphasizes counselling, training and development. It is argued

that critical evaluation and modification to improve are incompatible. But, in practice,

it is not possible to forge the critical aspect of performance appraisal.

This approach is appropriate for the appraisal of executives and supervisory personnel

who can understand it in a better way. Operative workers cannot understand this

approach and moreover, a vast majority of them do not want to take initiative in

setting their own goals.

Behaviorally Anchored Rating Scales

Behaviorally Anchored Rating Scales (BARS) are designed to identify the critical areas of

performance for a job, and to describe the more effective and less effective job behavior for



getting results. Performance is evaluated by asking the rater to record specific observable job

behaviors of an employee and then to compare these observations with a “behaviorally

anchored rating scale”. As a result, the supervisor is in a position to compare the employee’s

actual behavior with the behavior that has been previously determined to be more or less

effective.

Proponents of BARS claim many advantages of this approach. They argue that such a system

differentiates among behavior, performance, and results, and consequently is able to provide

a basis for setting developmental goals for the employee. Because it is job- -specific and

identifies observable measurable behavior, it is a more reliable and valid method for

performance appraisal. Empirical studies of Behaviorally Anchored Rating Scales (BARS)

have provided a fertile ground for study by both theorists and practitioners. By anchoring thescales behaviorally, the BARS approach was expected to produce more valid and reliable

results by reducing measurement errors (leniency, halo effect, central tendency, etc.).

Designing an Appraisal Programme

• Determining the Objective of performance Appraisal

Before any performance appraisal programme is initiated, it is essential to determine its

objectives. The objective of the appraisal programme may be either to appraise the actual

performance of individuals to higher jobs or both. Sometimes, performance appraisal

programmes are associated with specific objectives like training and development, transfer

and promotion, increase in pay, etc.

• Establishing Standards of Performance.

For effective rating of employees, it is necessary to establish standard on performance against

which their performance should be compared. However, an approach that is more preferable is

to establish, in writing, definite standards of accomplishment, which the employee can

reasonably be expected to meet. Such a method will take it possible for both supervisor and his

subordinate to reach agreement on just what is expected in terms of performance. It should benoted that performance standards are relative to the group and the organization. Not only are



the needs of each organization different, but the talents of manpower also varying from

organization to organization. The expectation of management is also higher in some

organizations than in others.

• Who is to do the Appraisal

Generally, the appraiser is the immediate superior of the man to be appraised. He is most

familiar with the employee’s work and is in contact with him and so he is considered to be able

to appraise him well. But there are certain limitations of appraisal by one person. That is why

some organizations try to obtain two or more ratings on each employee. But again the difficulty

may arise because the second rater may not have the necessary contact with the individual who

is to be rated. The possibility is the constitution of a rating committee, which may consist of a

number of supervisors and specialists from personnel department and a representative of the

worker. The committee will rate each individual collectively. Some people feel that employee

should be allowed to rate themselves. When this is done, their immediate superiors may offer

their rating in conjunction with ratings.Whosoever the appraiser may be, the subjectivity

invariably steps in. A well-adjusted person is less subject to projecting himself into other than a

poorly adjusted person and, therefore he is able to judge them better. It is often assumed that

qualified psychologists are more capable than laymen of making unbiased judgments since they

receive training in the dynamics of the personality and also in the correct manner of making the

judgment.

• Frequency of Appraisal

The frequency of appraisal differs from organization and with the nature of duties performed.

There are not spot appraisals, monthly, quarterly, and six monthly or yearly appraisals. But

most of the organizations conduct yearly or half – yearly appraisals because more frequent

appraisals besides taking away time of the appraiser or raters, may create a sense of fear

amongst the ratee’s. Idea frequency is one, which fits into the objectives of the older ones.



• Designing of Form

This is an important step in performance appraisal to design the rating forms to be utilized in

the programme. The forms should be related to job families such as clerical, mechanical, sales,

technical and supervisory. All require a different evaluation form. Performance forms may be

classified as those involving comparative ranking and others involving the comparison of each

employee’s actual performance with predetermined standards. The first category of forms is

designed to evaluate employee performance for the purpose of making wage adjustments, lay

offs, promotions, etc. and second category of forms is used to improve the performance of

workers on their present jobs.

Requirements of a Sound Performance Appraisal Programme

A sound system of performance appraisal must fulfill the following essentials:

1. The appraisal plan should be simple to operate and easy to understand. When the

appraisal system is complicated, employees may not understand it fully and may

look at the plan with suspicion. The plan should not be very time-consuming.

2. The performance appraisal system should be performance based, uniform and non –

variable, fair, just and equitable. It should be ensured that the appraisers are honest,

rational and objective in their approach, judgment and behavioral orientation.

3. The employees should be made aware of the performance in terms of goals, targets,

behavior, etc. expected of them. A personal between the appraiser and the employee

has to be developed to achieve mutual understanding of the criteria of evaluation.

4. The appraisal plan should be devised in consultation with the subordinates. This will

increase their commitment to the plan and their understanding of expected

performance.



5. The appraisal plan should take into account the appraisal practices prevailing in

other units in the industry as well as the latest thinking on performance appraisal. It

should fit in the structure and operations of the organization.

6. The top management must create a climate of reliable appraisal throughout the

organization. Goal – orientation, open communications, mutual trust informal

relationships, etc. are the basic elements of such a climate.

7. The appraisal plan should be designed to achieve specific objectives. The objectives

of the appraisal programme may be to evaluate current performance on the job and

to determine the potential for higher jobs. In some cases, performance appraisal islinked with specific objectives like pay raise, training, promotion, transfer, etc. The

number of factors to be considered and the data to be collected should be tailor-

made to achieve the objective of the appraisal.

8. The appraisers should be selected and trained properly so that they have no personal

bias and possess the necessary capabilities for objective evaluation of employees. In

order to ensure objectivity in appraisal, more persons may rate an individualindependently.

9. There should be provision of appeals against appraisals to ensure confidence of the

employees and their associations or unions. The results of appraisal must be

discussed with the rates so that they may get an opportunity to express their feelings

on their progress reports.



IFFCO TOKIO General Insurance's Employee Appraisal & Performance

Goal Setting

EmpXtrack Performance Management System is a set of web-based tools that enables

an organization to develop employees by focusing on setting SMART Goals, Performance

evaluation, Employee feedback, Compensation Planning and Succession Planning.

EmpXtrack Performance Management System is a set of five web-based software tools that

allow supervisors, managers, HR, leadership and CEO to measure, analyze report and

improve performance of employees. Based on globally followed HR concepts, our

performance management system helps you to empower & engage employees, brings

objectivity & transparency in employee performance evaluations and use employee

evaluation data for developing training plans.

Features of EmpXtrack

Covers all areas of Human Resources with a ready-to-use solution.

Significant customization options available to help adapt the product to your specific

processes and needs

It provides solutions to organizations of all sizes. Whether you are a startup of 20

employees or an enterprise with thousands of employees, EmpXtrack can empower your

Human Resource Management



User-friendly and completely web-based that can be accessed anywhere and anytime

from any computer connected to Internet or your business Intranet (depending on your

hosting choice).

Flexible pricing model with a low front-end cost. You can add features and employees

as your needs increase over time.

Built-in security allows role based access.

Other Significant Features

Print Goal Sheet: Goals sheets can be printed for quick reference.

Refer to Archives: You can look at archived goals sheets to view past achievements.

Export Data: You can export your goals data to Excel or text format to integrate with

other applications.

Multiple Hosting Options : You can host EmpXtrack on your server or you can ask to

host it on our secured and dedicated servers as an on-demand hosted application (SaaS).

The software can be accessed through internet or intranet

Print Appraisal Form:You can print blank or completed appraisal form and provide to

employee.

Import Old Appraisal Data: We can help import old appraisal data to EmpXtrack such

that you can access archived appraisals not conducted through this system.

Refer Previous Employee Appraisal: At any point of time you can refer to old

appraisals of employees.

http://www.empxtrack.com/solutions/technical-specifications/





CHAPTER:3

RESEARCH MTHODOLOGY

Research Design

A Research design is the arrangement of conditions for collection and analysis of data in a

manner that aims to combine relevance to the Research purpose with economy in procedure.

In fact the Research design is the conceptual structure within which Research is conducted: it

constitutes the blueprint for the collection measurement and analysis of data.

It must be able to define clearly what he wants to measure and must find adequate methods

for measuring it along with a clearly cut definition of population he wants to study. Since the

aim is to obtain complete and accurate information in the said studies, the procedure to be

used must be carefully planned. The research design must make enough provision for

protection against bias and must maximise reliability with due concern for the economicalcompletion of the research study. Descriptive and quantitative research is adopted for this

study. Descriptive research describes data and characteristics about the population being

studied. Descriptive research answers the question who, what, where, when and how. A

descriptive research design is was used to study the sample and draw inference about the

population. The major purpose of descriptive research is description of the state of affairs as it

exists at present. The main characteristic of this method is that the researcher has no control

over the variables. He can only report what has happened or what is happened. Quantitative

research has a goal of formulating problems more precisely, clarifying concepts, gathering

explanation, gaining insights, eliminating impractical ideas and forming hypothesis.

Sampling

Respondents were selected on the basis of simple random sampling. The respondents

belonged to Iffco-Tokio corporate office. The random sampling technique is used to collect

data for study. A total of 100 employees were selected on random basis and responses were

collected from them.



Tools

A structured questionnaire comprising of close ended questions was designed. The

questionnaire has been included in appendix of this project report. All the questions were

developed in order to know the degree of employees and to achieve the desired research

objectives.

Data Collection

There are 2 kinds of data collection modes i.e. primary data and secondary data.

Primary data: - Primary data is the data collected specially for a specific purpose.

The methods used for its collection are personal discussion & questionnaire etc. Themethod used in collecting primary data in my research was questionnaire. In this I

asked a set of predetermined questions in a predefined order, the answers given by

the respondents were used to fill up the questionnaire.

Secondary data: Secondary data consists of information that already exists

somewhere and was collected for another purpose, which may not be the same as the

purpose of research. Secondary data used here was the Performa of performance

appraisal used in IFFCO –TOKIO.



CHAPTER: 4

DATA ANALYSIS

4.1) GENDER WISE CLASSIFICATION OF RESPONDENTS

Gender No. of respondents Percentage (%)

Male 60 60

Female 40 40

Total 100 100

Source: Primary Data

Male

60%

Female

40%

Male

Female

INTERPRETATION:

From the above table, it can be inferred that 60% of the respondents are male and 40% of the

respondents are female.



4.2) AGE WISE CLASSIFICATION OF RESPONDENTS

Age No. Of Respondents Percentage (%)

20 – 25 Age 25 25

30– 35 Age 33 33

40 – 45 Age 30 30

Above – 45 Age 12 12

Total 100 100

Source : Primary Data

20 – 25 Age

25%

30– 35 Age

33%

40 – 45 Age

30%

Above – 45 Age

12%

20 – 25 Age

30– 35 Age40 – 45 Age

Above – 45 Age

INTERPRETATION:

From the above table, it can be inferred that 33% of the respondents are in the age between 30

– 35, 30% of the respondents are in the age between 40 – 45, 25% of the respondents are in

the age between 20 – 25 and 12% of the respondents are in the age above 45.



4.3) EXPERIENCE WISE CLASSIFICATION OF RESPONDENTS

Experience No. Of Respondents Percentage (%)

Below 5 Years 28 28

5-10Years 54 54

10 – 15 Years 18 18

Above 15Years - -

Total 100 100%

Sources: Primary Data

Below 5 Years

28%

5-10Years

54%

10 – 15 Years

18%

Below 5 Years

5-10Years

10 – 15 Years

INTERPRETATION:

From the above table, it can be inferred that 54% of the respondents are having 5- 10 years

experience persons, 28% of the respondents have below 5 years of experience persons, 18%

of the respondents are having10 – 15 years of experience and no respondents have experience

more than 15 years.



4.4) FREQUENCY OF PERFORMANCE APPRAISAL

Performance appraisal times No. Of Respondents Percentage (%)

Once year 100 100

Twice a year - -

No specific time _ -

Total 100 100


Once in a year

100%

1

INTERPRETATION:

From the above table, it can be inferred that 100% of the respondents agree that performance

appraisal is conducting once a year.



4.5) REASON FOR CONDUTING PERFORMANCE APPRISAL

Performance appraisal

conductingNo. Of Respondents Percentage (%)

To identify motivating methods - -

To decide monetary benefits - -

Identifying barriers of performance - -

All of the above 100 100

Total 100 100


All of the above

100%

1

INTERPRETATION:

From the above table, it can be inferred that 100% of the respondent’s agree that the reason

for conducting performance appraisal includes all the factors such as to identify motivating

methods, to decide monetary benefits and identify barriers for performance.



4.6) WHO CONDUCTS PERFORMANCE APPRAISAL

Who Performance appraisal

conductsNo. Of Respondents Percentage (%)

Superior 100 100Peers - -

Everyone - -

Outsider

Total 100 100


Supervisor

100%

1

INTERPRETATION:

From the above table, it can be inferred that for 100% of the respondents’ performance

appraisal is conducted by supervisor.



4.7) ARE YOU INFORMED REASON FOR PERFORMANCE APPRAISAL

Informed reason for

Performance appraisal

conducting

No. Of Respondents Percentage (%)

Yes 65 65

No 35 35

Total 100 100


Yes

65%

No

35%

Yes

No

INTERPRETATION:

From the above table, it can be inferred that 65% of respondents feel that reason for

performance appraisal is discussed and 35% of the respondent’s feel that reason for

conducting performance appraisal is not discussed.



4.8) EMPLOYEE PERFORMANCE DISCUSSED

Meetings of

employee performance

No. Of Respondents Percentage (%)

Nil 20 20

Once 60 60

Twice 20 20

Thrice - -

Total 100 100%


20%

60%

20%

Nil

Once in a year

Twice in a year

INTERPRETATION:

From the above table, it can be inferred that 20 % employees said that no meetings are

scheduled to discuss about their performance. 60% of the employees responded that to

discuss their performance meeting is scheduled only once and 20 % employees responded

that in order to discuss about their performance appraisal meeting is conducted twice a year.



4.9) OPINION AND SUGGESTIONS SHARED TO MANAGERS

Opinion and suggestions No. Of Respondents Percentage (%)

Yes 100 100

No - -

Total 100 100


Yes

1

100%

1

INTERPRETATION:

From the above table, it can be inferred that 100% of the respondents share their opinion and

suggestions to their managers.



4.10)TRAINING OF FILL UP PERFORMANCE APPRAISAL FORM

Forms No. Of Respondents Percentage (%)

Yes 100 100

No -

Total 100 100%


Yes

100%

1

INTERPRETATION:

From the above table, it can be inferred that 100% of the respondents are given training to fill

the appraisal form.



4.11) FEEDBACK PROVIDED FOR PERFORMANCE IMPROVEMENT

Feedback No. Of Respondents Percentage (%)

Yes 89 89

No 11 11

Total 100 100


Yes

89%

No

11%

Yes

No

INTERPRETATION:

From the above table, it can be inferred that 89% of the respondents says that feedback is

provided whereas 11% feel that feedback is not provided.



4.12) IMPORTANCE OF PERFORMANCE APPRAISAL

Importance No. Of Respondents Percentage (%)

Yes 90 90

No 10 10

Total 100 100


Yes

90%

No

10%

Yes

No

INTERPRETATION:

From the above table, it can be inferred that 90% of the respondents feel performance

appraisal is important and 10% of the respondents feel it is not important.



4.13) SUPPORT OF TOP MANAGEMENT IN PERFORMANCE APPRAISAL

Support No. of Respondents Percentage (%)

Yes 64 64

No 36 36

Total 100 100


Yes

64%

No

36%

Yes

No

INTERPRETATION:

From the above table, it can be inferred that 64% of the respondents feel top management is

supportive towards performance appraisal and 36% feel top management is not supportive.



4.14) POTENTIAL IDENTIFIED BY PERFORMANCE APPRAISAL

Effectiveness No. Of Respondents Percentage (%)

Yes 59 59

No 41 41

Total 100 100


Yes

59%

No

41%

Yes

No

INTERPRETATION:

From the above table, it can be inferred that 59% of the respondents feel that most of the

times potential of employee for advancement is identified, 41% feel that performance

appraisal does not identifies employees potential for advancement.



4.15) PERFORMANCE APPRAISAL ENCOURAGES TO REACH GOAL

Reaching your goals No. Of Respondents Percentage (%)

Yes 67 67

No 33 33Total 100 100


Yes

67%

No

33%

Yes

No

INTERPRETATION:

From the above table, it can be inferred that 67% of the respondents agree that performance

appraisal encourages to reach goals.



4.16) APPRAISAL FEED BACK

appraisal feed back No. Of Respondents Percentage (%)

Yes 95 95

No 5 5

Total 100 100


Yes

95%

No

5%

Yes

No

INTERPRETATION:

From the above table, it can be inferred that 95% of the respondents feel they are given

feedback.



4.17) ATTITUDE WHEN NEGATIVE POINTS ARE DISCUSSED

Negative points discussed No. Of Respondents Percentage (%)

Discouraged 10 10

determined to perform better 46 46

Ready to learn 34 34

Do not want to contribute 10 10

Total 100 100


Discouraged

10%

determined to perform

better

46%

Ready to learn

34%

Do not want to

contribute

10%Discouraged

determined to perform better

Ready to learn

Do not want to contribute

INTERPRETATION:

From the above table, it can be inferred that 10% of the respondents feel discouraged, 46% of

the respondents feel determined to perform better, 10% of the respondents feel they do not

want to contribute and 34% of the respondents feel they are ready to learn.



4.18) COMFORTABILITY IN DISCUSSING PROBLEMS

Comfortability No. Of Respondents Percentage (%)

Yes 25 25

No 75 75

Total 100 100


Yes

25%

No

75%

Yes

No

INTERPRETATION:

From the above table, it can be inferred that 25% of the respondents feel they are

comfortable, and 75% of respondents feel they are not comfortable in discussing their

problems with their superior.



CHAPTER-5

FINDINGS AND SUGGESTIONS

FINDINGS

Majority (60%) of respondents are male.

Most of the respondents (33%) belong to the age group of 30 to35.

54% of the respondents have above 5 to 10 years of work experience.

All of the respondents have undergone performance appraisal program once in a year.

100% of the employees interpret the reason for conducting performance appraisal

includes all the factors such as to identify motivating methods, to decide monetary

benefits and identify barriers for performance.

For 100% of the respondents the performance appraisal is conducted by supervisor.

65% of the respondents feel that the reason for performance appraisal is informed to

them.

20% respondents said that no meeting is scheduled for discussion of their performance

appraisal. Most (60%) replied that twice in a year the meeting is scheduled for employees

to discuss their performance.

All respondents mostly share their opinion and suggestions freely during the

performance appraisal.

All respondents have got the training to fill up the performance appraisal forms.

89% respondents feel the superior provides informal feedbacks for performance

improvement.

Majority (90%) of the respondents feel that performance appraisal is important to the

organization.



64% of the respondents feel that the top management is highly supportive towards the

performance appraisal system.

59% of the respondents agree that performance appraisal helps to identify employees’

potential for advancement rarely.

67% of the respondents agree that performance appraisal system encourages to put

more effort in reaching goals.

95% of respondents feel the feedback about the performance appraisal system is

obtained.

46% of the respondents are determined to perform better when negative points are

discussed.

SUGGESTIONS

Performance appraisal could be conducted by a person /organization outside the

organisation.

Objective of conducting the performance appraisal could be discussed and doubts can

be clarified.

Performance appraisal could be updated regularly to match individual and

organisational goals.

Suggestion could be obtained from employees regarding framing the performance

appraisal system.

Employees’ suggestion during performance appraisal may not reach the top managers.

For such situations suggestion box can be implemented and frequently reviewed.

Feedback on performance could be discussed through formal or informal meetings.

This may enhance the involvement and performance of employees.

Appropriate and experienced appraiser can be appointed for effective performance.

Employees having low performance could be called individually, encouraged and

monitored closely to make improvements.



Appraisal feedback is very important in any performance appraisal program. It could

be carefully communicated by making high performers’ increase their target and low

performers to build up their confidence.



CHAPTER-6

CONCLUSION

Performance 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 abilities, supervision, dependability, co-

operation, judgement, versatility, health and the like. It is also help the developing the

strengths & weakness of the employees

From the study it has been indentified that the performance appraisal is able to identify

employees’ potential and find the motivating factors of employees. People having poor

background are given training and provided with jobs. Performance appraisal can be

conducted more effectively by using the right tools and properly reviewing and updating the

performance appraisal program.

Suggestion form employees and experienced personnel can further enhance and make the

performance appraisal an ideal evaluation system.



BIBLIOGRAPHY

REFERENCES

BOOKS

1. Performance Management, Concepts, Practices and Strategies for Organisation success

by S. K. Bhatia, Deep & Deep Publications Pvt. Ltd, 2008.

2. Human Resource Management. By S. Seetharaman & B. Venkateswara Prasad, Scitech

Publication, 2007.

3. Kothari, C.R., Research Methodology - Methods & Techniques , New Delhi, New Age

international (P) Ltd., Publishers, Second Edition,2004.

4. Statistical Methods for Management, By P.N. Arora & S.Arora New Delhi, Sultan Chand

& Sons Publishers, 2005.

WEBSITE

www.iffcotokio.co.in

www.citehr.com

www.performance - appraisal.com

http://www.citehr.com/

http://www.performance-appraisal.com/


http://www.citehr.com/




APPENDIX

Questionnaire

Dear Respondent,

I would be grateful if you could spare some of your time to respond to the following

questions. Your response will be treated as confidential and would only be used for the

purpose of study.

Gender : Male Female

Age group : 20 – 30 31 – 40 41 – 50 51 –

60

Experience : Less than 3 years 4-8 Years

9 – 15 Years More than 15 Years

Qualification : _____________________________

1. How many times dose performance appraisal takes place in your organization?

a) Once a year b) Twice a year c) No specific time

2. What is the reason for conducting performance appraisal in your organization?

a) To identify motivating methods b) To decide monetary benefits



c) Identifying barriers of performance d) All of the above

3. Who conducts performance appraisal?

a) Superior b) Peers c) Everyone d) Outsider

4. Are you informed the reason for conducting performance appraisal programs?

a) Always b) Sometimes c) Never

5. How many meetings are scheduled in a year to discuss employee performance?

a) Nil b) Once c) Twice d) Thrice

6. Do you share your opinion and suggestions freely to the managers during the

appraisal program?

a) Mostly b) Rarely c) Never

7. Are you given training of how to fill up performance appraisal forms?

a) Yes b) No

8. Other than performance appraisal does your superior provide you with informalfeedbacks for performance improvement?

a) Frequently b) Occasionally c) Never

9. Do you feel that performance appraisal is important in an organization?

a) Highly important b) Less important c) Not important d) No idea



10.Does top management support and encourage performance appraisal?

a) Highly supportive b) Less supportive c) Not supportive

11.Does performance appraisal identifies employee potential for advancement?

a) Mostly b) Rarely c) Never

12. Sate your satisfaction through the performance appraisal program at the organization?

a) Unsatisfactory b) Needs Improvementc) Meets Expectations d) Outstanding

13. Do you feel that performance appraisal encourages you to put in more effort in

reaching your goals?

a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly

disagree



14. Do you obtain appraisal feedback?

a) Frequently b) Occasionally c) Rarely d) Never

15. How do you feel when negative points are discussed?

a) Discouraged b) determined to perform better

c) Ready to learn d) do not want to contribute

16. Do you feel comfortable in discussing your problems with your superior?a) Highly Comfortable b) Comfortable c) Neutral

d) Uncomfortable e) Highly uncomfortable

17. How do you rate the Performance Appraisal System in your Organization? (On a

scale of 1 to 5 with 1 being the lowest and 5 being the highest).

___________________________________





















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