A_Project_Report

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A Project Report

On

A Study ON PERFORMANCE APPRAISAL OF EMPLOYEES

SUBMITTED IN PARTIAL FULFILLMENT FOR THE

AWARD OF DEGREE OF

POST GRADUATE DIPLOMA

RETAIL MANAGEMENT

SUBMITTED TO: SUBMITTED BY:

Ms HIMANSHI TIWARI SYED M. SAAD 982

VIKAS KUMAR 987

SUGANDHA 978


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ACKNOWLEDGEMENT

We sincerely thank our faculty Ms. Himanshi Tiwari who initiated us to do this

project and without the help of whom this project would not have been possible.

We also thank our institution Birla Institute Of Management Technology

(BIMTECH), to provide all the facilities and infrastructure which was a great

support in completion of our project.

Even we are highly obliged to the NGO ACTIONAID & its employees without

the cooperation of which we would have been unable to complete this project

In the end we thank all our seniors & friends, both within the group and outside,

for all the effort and cooperation they have showed in helping us to make project

successful.


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Contents

1. Acknowledgement

2. Objective of study..4

3. About the organization...5

4. Performance appraisal....8

5. Preface ...............9

6. Methods of appraisal.............12

7. Benefits of performance appraisal.............15

8. Research methodology... ..15

9. Analysis of Questionaire...17

10.Hypothesis.24

11.Conclusion.26

12.Recommendation...............27

13.References..28


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Objectiveofstudy

y The objective of the study is to analyze the data of the performance appraisal of the

system of an NGO ACTION AID.

y To study whether the polices of human resource department regarding the performance

appraisal system is able to satisfy the employees working their

y It will also help in enhancing our knowledge about performance appraisal system in real

life organization


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ORGANISATION

Action Aid DRC is part of Action Aid International an anti-poverty agency working in over 40

countries in Asia, Africa, Latin America and the Caribbean, taking sides with the poor to end

poverty and injustice together.

Action Aid started its work the Democratic Republic of Congo in June 2003 in the conflict

ridden eastern province of North Kivu. The programmed was later expanded to the adjacent

South Kivu province in Bukavu and thus gaining recognition as a major development player in

the country.

Action Aid has registered with the government, credible partnerships agreed and donors brought

on board. In our work, Action Aid seeks to achieve equity between men, women, boys and girls

by empowering women and challenging discrimination and insubordination of women and girls.

The organization also supports local partner organizations to promote the interests and active

participation of poor and excluded people in all spheres of their life.

Vision: A nation without poverty where every citizen exercises their right to a life of dignity.

Mission: To work in partnership with poor and excluded people to eradicate poverty by

challenging and overcoming the injustices and inequity that cause and perpetuate it.


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Values

Mutual respect: recognizing the innate dignity and worth of all people and the value of diversity.

Fairness, equity and justice: ensuring that everyone, regardless of sex, age, race, colour, class

and religion, has equal opportunity for expression and for utilizing their potential.

Integrity: honesty, transparency and accountability - being accountable for the effectiveness of

our actions and open in our judgment and communications with others.

Solidarity: with the poor, excluded and marginalized people - our only bias shall be in favors of

the interests of the poor, excluded and marginalized.

Courage of conviction: being creative and radical without fear of failure, in pursuit of the

highest possible impact on the causes of poverty.

Humility: recognizing that we are part of a bigger alliance against poverty and requiring our

presentation and behavior to be modest.

Respect for the rights of women and children:we believe in taking affirmative action and

deliberately strengthening the capacity of women to meet their basic needs and to improve on

their position; and have a strong commitment to the rights of the children.

Independence: as an organization, we remain independent of any religious, party-politics or

other partisan affiliation


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PERFORMANCE APPRAISAL

INTRODUCTION

Human Resource (or personnel) management, in the sense of getting things done through people,

is an essential part of every managers responsibility, but many organizations find it

advantageous to establish a specialist division to provide an expert service dedicated to ensuring

that the human resource function is performed efficiently.

Performance Appraisal is the process of assessing the performance and progress of

an employee or a group of employees on a given job and his / their potential for future

development. It consists of all formal procedures used in the working organizations to evaluate

personalities, contributions and potentials of employees


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PREFACE

Managing human resources in todays dynamic environment is becoming more and more

complex as well as important. Recognition of people as a valuable resource in

the organization has led to increase in trends in employee maintenance, My research project

deals with Performance Appraisal

In this report, I have studied & evaluated the performance appraisal process as it is carried out in

the NGO Action Aid.

The first section of my report deals with a detailed company profile. It includes the companys

history: its activities and operations, organizational structure, etc. this section attempts to give

detailed information about the company and the nature of its functioning.

The second section deals with performance appraisal. In this section, I have given a brief

conceptual explanation to performance appraisal. It contains the definition, process and

significance of performance appraisal.

In the third section of my report, I have conducted a research study to evaluate the process

of performance appraisal at this section also contains my findings, conclusions, suggestions and

feedback.

The fourth and final section of this report consists of extra information that I related to the main

contents of the report. These annexure include some graphs and diagrams relating to the

company, graphs relating to the research study and important documents upon which the project

is based.


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WHAT IS PERFORMANCE APPRAISAL?

Performance Appraisal is defined as the process of assessing the performance and progress of

an employee or a group of employees on a given job and his / their potential for future

development. It consists of all formal procedures used in working organizations and potential of

employees. According to Flippo, Performance Appraisal is the systematic, periodic and an

important rating of an employees excellence in matters pertaining to his present job and his

potential for a better job.

CHARACTERISTICS:

y Performance appraisal is a process

y It is the systematic examination of the strengths and weakness of an employee in terms of

his job.

y

It is scientific and objective study. It is an ongoing and continuous process wherein the

evaluations are arranged periodically according to a definite plan

y The main purpose of Performance Appraisal is to secure information necessary for

making objective and correct decision for an employee aligning with the organizational

goal.

FormatofEvaluation

y Establish performance standards for each position and the criteria for evaluation.

y Establish performance evaluation policies on when to rate, how often to rate, and who

should rate.


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y Have raters gather data on employees performance.

y Discuss the evaluation with the employee.

y Make decisions and file the evaluation.

LimitationofPerformanceAppraisal

y The review is done in retrospect and is an average of six months old so recollection of

events is poor

y The opinions of staff and manager are often in opposition, causing de-motivation

y The process is usually Manager driven and the staff member is expected to be compliant

in the interview

y The process usually involves the Manager giving their opinion and the staff member

having to defend the position, rather than a positive discussion

y The process is usually done in a rushed manner to meet a budget development process

and therefore loses its relevance to performance

MethodsofPerformanceAppraisal

There are many ways to evaluate employees. Generally these methods can be divided into two

broad categories. One category consists of methods that evaluate employees individually. In


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other words, the supervisor evaluates each employee without explicit, direct comparisons with

other employees; plus the standards of performance are defined with reference to other

employees.

The second category depends on multiple-performance evaluations. The standards of

performance are relative; an employees performance is defined as good or bad on the basis of

comparison with other employees performance.

ESSAY APPRAISAL

In its simplest form, this technique asks the rater to write a paragraph or more covering an

individual's strengths, weaknesses, potential, and so on. In most selection situations, particularly

those involving professional, sales, or managerial positions, essay appraisals from former

employers, teachers, or associates carry significant weight

FIELD REVIEW

The field review is one of several techniques for doing this. A member of the personnel or

central administrative staff meets with small groups of raters from each supervisory unit and

goes over each employee's rating with them to (a) identify areas of inter-rater disagreement, (b)

help the group arrive at a consensus, and (c) determine that each rater conceives the standards

similarly. .

FORCED-CHOICE RATING

Like the field review, this technique was developed to reduce bias and establish objective

standards of comparison between individuals, but it does not involve the intervention of a third

party. Forced-choice items are prepared by HR specialists and then supervisors or others familiar

with the ratees performance evaluate how applicable each statement is.


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Graphic Rating Scale

This technique may not yield the depth of an essay appraisal, but it is more consistent and

reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work (is

he outstanding, above average, average, or unsatisfactory?) and on a variety of other factors that

vary with the job but usually include personal traits like reliability and cooperation. It may also

include specific performance items like oral and written communication.

Perhaps the most commonly used method of performance evaluation is the graphic rating scale.

Of course, it is also one of the oldest methods of evaluation in use. A variety of traits may be

used in these types of rating devices, the most common being the quantity and quality of

work. One positive point in favor of the rating scale is that it is easy to understand, easy to use

and permits a statistical tabulation of scores of employees. When ratings are objective in nature

they can be effectively used as evaluators. The graphic rating scale may however suffer from a

long standing disadvantage, i.e., it may be arbitrary and the rating may be subjective. Another

pitfall is that each characteristic is equally important in evaluation of the employees

performance and so on.

Critical Incident Technique

This technique requires a log of behavioral incidents that represent either effective or ineffective

performance for each employee being rated. These incidents are critical incidents. Two factors

make this technique successful:


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The supervisor has to be given enough time to observe each subordinate during the evaluation

period

It is unreasonable to expect a supervisor to remember all of the incidents that were observed.

Keeping a diary in the form of a log should be a valuable aid in formulating an accurate

appraisal.

360 DEGREE FEEDBACK

Many firms have expanded the idea of upward feedback into what the call 360-degree feedback.

The feedback is generally used for training and development, rather than for pay increases.

360 degree feedback is also known as the multi-rater feedback, whereby ratings are not given

just by the next manager up in the organizational hierarchy, but also by peers and subordinates.

Appropriates customer ratings are also included, along with the element of self appraisal. Once

gathered in, the assessment from the various quarters are compared with one another and the

results communicated to the manager concerned.

BenefitsofPerformanceAppraisal

The benefits of the appraisal are as follows:

Benefits for the individual:

Understanding more clearly how and where they fit in within the wider picture

Getting an insight into how their performance is perceived

Improving understanding of their strengths and weaknesses and developmental needs


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Identifying ways in which they can improve performance

Providing an opportunity to discuss and clarify developmental and training needs

Benefits to the line manager/supervisor/team leader:

An opportunity to identify any potential difficulties or weaknesses

An improved understanding of the resources available

An opportunity to plan for and set objectives for the next period

An opportunity to motivate members of the team.

Benefits to the organization:

A structured means of identifying and assessing potential

Up-to-date information regarding the expectations and aspirations of employees

Information on which to base decisions about promotions and motivation

An opportunity to review succession planning

Information about training needs which can act as a basis for developing training plans


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Research Methodology

The methodology followed for conducting the study includes the specification of research

design, sample design, questionnaire design, data collection and statistical tools used for

analyzing the collected data.

Research Design

The research design used for this study is of the descriptive type. Descriptive research studies are

those studies which are concerned with describing the characteristics of a particular individual or

a group

Sample Size

The sample size consisting of 30 respondents were selected for the study.

Samplingdesign:

Since it is difficult to contact the entire population, sampling technique was adopted. The

employees were interviewed as per the time available with them.

Questionnaire Design

Questionnaire was designed in consultation with the employees of

in such a manner that it would facilitate the findings of the purpose of the study.

Datacollection

The primary data was collected by using questionnaires. The questionnaire has 12 questions like-

Who appraise them, basis of performance appraisal and method, does it help in aligning


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individual goals with the organizational goals. We have asked the employees to rate some of the

parameters on a five point scale.

Statistical Toolsusedforanalysis

The collected data was analyzed by using the following techniques:

y Percentage analysis

y Chi-Square test


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QuestionnaireanditsAnalysis

1. Who appraise you?

Manager 0

Immediate superior 1

Self appraisal 16

360 degree

appraisal

13

Any other 0

2. Do you have an annual set of Performance standards?

Strongly Agree 17

Agree 13

Neither agree nor disagree 0

Disagree 0

Strongly disagree 0

0%3%

54%

43%

0%

Who appraises you ?

manager

immidiate superior

self appraisal

360 degree appraisal

any other


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3. How often the performance appraisal form is done?

Fortnightly 0

Monthly 0

Half yearly 5

Annually 25

Not fixed 0

0% 0%

17%

83%

0%

How often the performance

appraisal is done ?

Fortnightly

Monthly

Half yearly

Annually

Not fixed

57%

43%

0% 0% 0%

Dohaveanannualsetofperformance

standards

Strongly agree

agree

neither agree nor

disagree


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4. On what basis performance is done?

Merit cum seniority 25

Seniority cum merit 0

Merit only 5

Seniority only 0

Any other 0

5. What methods are being used for performance appraisal?

Forced Choice Distribution 5

Essay Method 25

Ranking Method 0

Critical Incident Method 0

Any Other 0

83%

0%

17%0% 0%

On What basisperformanceis

done ?

merit cum

seniority

seniority cum

merit

merit only


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6. Does the organization provide counseling after the appraisal?

7. What kind of remedial measures are taken for betterment of the employee, after appraisals

are done?

17%

83%

0% 0%

0% Whatmethodsare beingusedforperformance

appraisal

Forced choice

distribution

Essay method

Ranking method

Always 16

Often14

Rarely 0

Never 0

Cant say 0

Job Rotation 14

Training Program 14

Counseled 2

Any Other 0


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8. How do you rate the transparency of the performance appraisal system of the company?

46%

47%

7%0%

What kindofremedial Whatmeasures

aretakenfor bettermentofthe

employee after appraisals are done ?

Job Rotation

Training programmes

Counselled

Any other

27%

27%

33%

3%10%

How do you rate the transparency of the appraisal

system?

Outstanding

Very Good

Good

Satisfactory

Dissatisfied

Outstanding 8Very Good 8

Good 10

Satisfactory 1

Dissatisfactory 3


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9. Does the performance appraisal system help you in aligning your goals with those of the

organization?

10.Does the performance appraisal system motivate the employee to perform better in your

job?

40%

43%

17%

0% 0%

Does the appraisal system helps in motivatingemployees?

Strongly Agree

Agree

Neutral

DisagreeStrongly Disagree

Strongly Agree 14

Agree 16

Neutral 0

Disagree 0

Strongly Disagree 0

Strongly Agree 12

Agree 13

Neutral 5

Disagree 0

Strongly Disagree 0


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11.How the performance appraisal is carried on your Management?

12.Do you know the

objectives of the performance appraisal system?

The answers given to this open ended were -:

Self development

Motivation

Primary hikes self development

High morale

On regular basis 9

Formally 21

Informal 0Any other 0


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Hypothesis

H0: The views regarding the transparency of the appraisal system do not vary

significantly according to the age of the employees.

H1: The views regarding the transparency of the appraisal system varies significantly

according to the age of the employees.

AGE

Transparency

Level

25-30 30-35 35-40 40-45 Total

Outstanding 5 2 1 0 8

Very Good 5 1 1 1 8

Good 3 3 2 2 10

Satisfactory 1 0 0 0 1

Dissatisfactory 1 2 0 0 3

Total 15 8 4 3 30


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CalculatedChi Value = 7.811

Criticalvalueis =24.996

Therefore we can say that there is no significant difference regarding the transparency

level according to the age group. Thus accept the null hypothesis.


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Conclusion

Bases on the survey and Hypothesis we developed we can conclude that the performance

appraisal done by the particular organization is transparent and done mostly as self

appraisal and 360 degree appraisal on an annual basis. The employees have set standards

to complete considering which they are appraised on merit cum seniority basis. The

employees not meeting the set standard are either sent for the training program or they

are rotated on the job. They are appraised by the method of forced distribution and by

way of essay method. On the whole we can say that the organizations employees are

quite satisfied with their appraisal system.


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Recommendation

Through survey we have seen that some employees are even dissatisfied with their

performance appraisal. So the company should look into their compensation packages as

well as the type of job they are responsible to do .The employees should be given a fair

appraisal to either promote or demote as the conditions may be.


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REFERENCES

y www.actionaid.org

y www.wikipedia.org\performanceappraisal

y Human resource management by John M Ivancevich

Documents

A_Project_Report