CHAPTER 1

INTRODUCTION

Figure 1.1

The 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.

Performance appraisals are regular reviews of employee performance within organizations.

Generally, the aims of a performance appraisal are too:

 Give feedback on performance to employees.

 Identify employee training needs

 Document criteria used to allocate organizational rewards

 Form a basis for personnel decisions: salary increases, promotions, disciplinary

actions, etc.

 Provide the opportunity for organizational diagnosis and development

 Facilitate communication between employee and administration

1
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.

People differ in their abilities and their aptitudes. There is always some difference between
the quality and quantity of the same work on the same job being done by two different
people. Therefore, performance management and performance appraisal is necessary to
understand each employee's abilities, competencies and relative merit and worth to the
organization.

Performance appraisal rates the employees in terms of their performance.

Fig 1.2

Performance appraisal takes into account the past performance of the employees and focuses
on the improvement of the future performance of the employees. The study on Performance
Appraisal of employees was carried out at IT Industry. The main aim of the study was to
explore the method which is followed and effectiveness of the employees.

The primary data required for the study were collected through structured questionnaire,
personal interviews and informal talks. The second data was from the company manuals and
the website of the company. The data were analyzed and the findings were arrived at the
basis of which suggestions are made
2
1.1 STATEMENT OF THE PROBLEM

Today's working climate demands a great deal of commitment and effort from employees,
who in turn naturally expect a great deal more from their employers. Performance appraisal is
designed to maximize effectiveness by bringing participation to a more individual level in
that it provides a forum for consultation about standards of work, potential, aspirations and
concerns. It is an opportunity for employees to have significantly greater influence upon the
quality of their working lives. In these times of emphasis on "quality", there is a natural
equation: better quality goods and services from employees who enjoy better quality "Goods
and services" from the employees.

Performance appraisal is a process of assessing, summarizing and developing the work

performance of an employee. In order to be effective and constructive, the performance
manager should make every effort to obtain as much objective information about the
employee's performance as possible. Low performance can push the organization back in
today's tough competition scenario. The project is aimed at analyzing the performance
appraisal in IT Industry.

3
1.2 SCOPE OF THE STUDY

 The study covers employees of IT Industry.

 A survey was conducted for information about the performance appraisal system that
was used in the company.
 The study focuses on type, effectiveness and employee attitude of the appraisal
system.
 To help management plan future development and growth.
 The sample size of 50 employees was selected at random from all departments.

4
1.3 LIMITATIONS OF THE STUDY

 The Company's policy of not disclosing some data and information for obvious
reasons, which would have been very much useful for the report.

 Few employees sometime felt disturbed, as they were busy with their job.

 It is difficult to make information based a rich report in a short time of period.

 The sample size was restricted to 50 employees.

 The answers given by the respondents highly depend on the mood and interest and
thus the accuracy fluctuates sometimes.

5
 CHAPTER 2

LITERATURE REVIEW

2.1 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Human Resource for personnel) management, in the sense of getting things done through
people, is an essential part of every manager's responsibility, but many organizations find
advantages to establish a specialist division to provide an expert service dedicated to ensuring
that the human function is performed efficiently.

People are most valuable asset" which no member of any senior management team would
disagree with. Yet, the reality for many organizations is that their people remain undervalued.
under trained and underutilized,

The market place for talented, skilled people is competitive and expensive. Taking on new
staff can be disrupted to existing employees. Also, it takes time to develop 'cultural
awareness, product process/organizational knowledge and experience for the new staff
members

2.2 FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

Following are the various functions of Human Resource Management that are essential for
the eflective functioning of the organization.

1. Recruitment
2. Selection
3. Induction
4. Performance appraisal

6
2.2.1 Recruitment

The process of recruitment begins after manpower requirement is determined in terms of

quality through job analysis and quantity through forecasting and planning

2.2.2 Selection

The selection is the process of ascertaining whether or not candidates possess the requisite
qualification, training and experience required.

2.2.3 Induction

Induction is the technique by which a new employee is to rehabilitate into the changes
surrounding and introduced to the practices, policies and purposes of the organization.

2.2.4 "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 the future
development. It consists of all procedure used in working organization and potential of
employees

Performance appraisal means systematic evaluation of the personality and performance of

each employees by his superior or some other persons trained in the technique of merit rating.
It employs various ratings technique for comparing individual employees in a work group, in
terms of personnel qualities or deficiencies and the requirements of their respective jobs

7
 Fig. 2.1

DEFINITION

According to Dale Yoder, "Performance appraisal includes all formal procedure used to
evaluate personalities and contributions and potential of group members in a working
organization. It is a continuous process to secure information's necessary for making
corrections and objective decisions of employees".

According to Flippo, "Performance appraisal is the systematic, period and an importance

rating of an employee's excellence in matters pertaining to his present job and his potential
for a better job".

8
CHARACTERISTICS

 Performance appraisal is a process.

 It is the systematic examination of the strength and weakness of employees during the
term of his job.

 It is a scientific and objective study. Formal procedure is used in the study.

 It is an ongoing and continuous process wherein the evaluations are arranged

periodically according to a definite plan.

 The main purpose of performance appraisal is to ensure information necessary for

making objectives and correct decision an employee.

9
PROCESS

The process of performance appraisal:

 Establishing performance standards

 Communicating the standards

 Measuring performance

 Comparing the actual with the standards

 Discussing the appraisal

 Taking corrective action

10
OBJECTIVES OF PERFORMANCE APPRAISAL

Fig 2.2

 To provide employees feedback on their performance

 Identify employee training needs.

 Provide the opportunity for organizational diagnosis and development.

 Facilitate communication between employee and employer

 A basis for decisions relating to salary increases, promotions, disciplinary actions,

[Link]

11
LIMITATIONS OF PERFORMANCE APPRAISAL

 Performance appraisal may not yield the desired results because of the following
deficiencies:

 If the factors included in the assessment are irrelevant, the result of merit rating will
not be accurate.

 Different qualities to be rated may not be given proper weight, age certain in cases

 Some of the factors are highly subjected like the initiative and personality of the
employees, so the actual rating may not be on scientific line

12
METHODS OF PERFORMANCE APPRAISAL

There are various methods of merit rating, which may be classified into:

 Traditional methods

 Modern methods

13
TRADITIONAL METHOD

Traditional methods are very old technique of performance appraisal. They are based on trait-
oriented appraisal. Evaluation of employee is made on this basis of standards of personal
traits or qualities such as attitudes, judgment, versatility, initiative, dependability, leadership,
loyalty, punctuality, knowledge of the job etc.

TYPES OF TRADITIONAL STRUCTURE

1) Ranking methods

Ranking is a simple process of placing employees in a rank according to their job

performance

It permits comparison of all employees in any single rating group, regardless of the type of
work. All workers are judged on the same factors and they are rated on the overall basis with
reference to their jot, performance instead of individual assessment of traits. Paired
comparison is an improvement over simple ranking. Under this, every employee in a job
family is compared with every other employee to determine which the better worker is.

2) Field review method

Under this method, the supervisors are interviewed by an expert from the personnel
department. The expert questions the supervisor to obtain all the pertinent information on
each employee and takes notes in his book. Thus, there is no rating from with factors or a
degree, but overall ratings are obtained. The workers are usually classified into three
categories as outstanding, satisfactory, and unsatisfactory.

14
MODERN APPRAISAL METHODS

There are two important methods of performance appraisal, which are used by the modern
concem. The first is Management by Objectives (MBO) which represent result oriented
appraisal The second one is Behaviorally- Anchored Rating Scale (BARS) which is based on
rating the behavior of the subordinates.

TYPES OF MODERN APPRAISAL METHOD

1) Management by Objective

It was Peter Ducker, who proposed goal setting approach to performance appraisal, which he
called "Management by Objectives and self-control. This approach was further strengthened
by Douglas McGregor was concerned with the fact that most traditional appraisal system
involved ratings of traits and personal qualities that he felt were highly unreliable. Besides,
the use of such trait ratings produced two main difficulties

The management was uncomfortable about using them and resisted making an appraisal

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

1. Behavioral Anchored Rating Scales

Behavioral anchor rating scale (BARS) is designed to identify the critical area of
performance of 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 employce and then to compare these observations with a "behaviorally anchored scale"

Behaviorally anchored rating scale approach combines elements of the traditional rating scale
and critical incident method. Using BARS, job behaviors from critical incident-effective and
ineffective behaviors are described more objectively. This method employs individual who
are familiar with a particular job to identify its major components

2. 360 DEGREE APPRAISALS AND FEEDBACK

The 360-degree appraisal involves rating of an employee or manager by every one above,
alongside and below him. Although deployed mostly as a fact-finding technique. 360-degree
appraisal is also used to design promotion and reward in the organization. Structured

15
questionnaire is used to collect responses about the employee from his superior's peers and
subordinates.

Merits of 360-degree appraisal

1. The 360-degree appraisal leads to greater self-awareness of those appraised. It reveals

strength and weaknesses in their working style

2. The gap between self-assessment and the view of one's colleagues or peer group in
reduced.

3. If facilitate empowerment of subordinates who get a say in the appraisal of their

bosses

4. Inflexibility managers are forced to initiate self-change

5. Facts about organizational culture and ambience are brought to light by the multiple
appraisals

16
Limitation of 360-degree appraisal

1. The 360-degree appraisal system ignores performance appraisal in terms of goals.

2. The candidate being appraised may not accept negative feedback from the
subordinates.

3. Responses from colleague often tend to be biased.

4. Linking rewards to finding less than 360-degree appraisal can prove to be unfair.

5. The subordinates and might not be fully competent in appraisal.

17
OBJECTIVES OF STUDY

 Identification of the technique of performance appraisal in IT INDUSTRY.

 Employee attitude towards the present appraisal system.

 To identify the effectiveness of performance appraisal system for employees.

 Identifying performance appraisal leading to the discovery of unfound talents amongst

the employees.

18
 CHAPTER 3

RESEARCH METHODOLOGY

3.1 AIM OF THE RESEARCH

The assigned task was to conduct a survey for a well reputed company. The research is
concerted with the systematic and objective collection, analysis and evaluation of the
information about specific aspects in order to help management make effective decisions.
Once the aspect is identified and defined it is the responsibility of the researcher in a
successful manner

The methodology used in the study involves the collection of primary as well as secondary
data Research in common parlance refers to a search of knowledge. One can also define
research as a scientific und systematic search for pertinent information on a specific topic,

3.1.1 RESEARCH DESIGN

Research Design refers to "framework or plan for a study that guides the collection and
analysis of dam". Though each research study has its own specific purpose, but the research
design of this project on Performance Appraisal in IT industry is Conclusive in nature.

3.1.2 CONCLUSIVE RESEARCH DESIGN

Conclusive Research Studies are more formal in nature and are conducted with a view to
eliciting more purpose information for the purpose of making marketing decisions. These
studies can be

a. Descriptive
b. Experimental
Thus, it was a mix of both the tools of Research Design that is, explorative as well as
conclusive.

3.1.3 SAMPLE DESIGN

A sample design is defined as a plan determined before any data are actually collected for
obtaining a sample from a given population. Sample can be either probability sample or
nonprobability sample

19
In designing the sample, the researcher must specify three things

1. Sampling unit.
2. Sample size.
3. Sampling technique

3.1.4 SAMPLING UNIT

The unit Comprises of employees from all departments of the IT Industry.

3.1.5 SAMPLE SIZE

The sample size taken for this survey was 50 employees of IT Industry. Employees from
every department was selected according to their availability.

3.1.6 SAMPLING TECHNIQUE USED

When field studies are under undertaken in practical life, consideration of time, cost and
some other factors almost invariably lead to selection of respondents. The selected
respondents constitute a sample and the selection process is called sampling technique.

I have selected Simple random sampling in my project.

3.1.7 SIMPLE RANDOM SAMPLING

This type of sampling is also known as chance sampling or probability sampling, where each
item in the population has an equal chance of being selected in the sample.

20
3.2 SOURCE OF DATA

This research study is exclusively based on Primary Data & Secondary Data collected.

3.2.1 PRIMARY DATA

The objective of the study has been accomplished with the help of primary data collected
from 50 employees. The selected samples are met in persons and the data has been collected
with the help of a questionnaire

The questionnaire used in this survey consists of structured type of questions. It is mixed type
of questionnaire which contains both close ended and other type of questions. Primary data
refer to the data collected from primary sources. The primary data were obtained by
distributing questionnaires among the employees. The questionnaires contributed main source
of primary data Also Interview with HR Manager also contributed in the finding of the
research

3.2.2 SECONDARY DATA

Secondary data were collected from official records of the organization, websites and from
other publications. Data which are not originally collected but rather obtained from a
published or unpublished source, are known as secondary data

The Main Sources are

1. Journals and records

2. Magazines
3. Web sites

21
3.3 STATISTICAL TOOLS

The secondary tools used for analyzing the collected data are

3.3.1 Percentage

Percentage analysis: Percentage refers to these in making Pedal kind of ratio which is used
comparison between two or more series of data. Percentage can also be used to compare
relative terms and the distribution of two or more series of data the ease and simplicity of
calculating, the general understanding of its purpose and the universal acceptability of the
present static have made it the most widely and standardizing tool in researchers. Since the
percentages reduce meaningful comparison to be made with data

Percentage analysis formula

Percentage (Number of Respondents/ Total population of the sample) x 100

3.3.2 TOOLS FOR THE DATA COLLECTION

QUESTIONNAIRE

Structured questionnaire in which the questions were based on the objective set for the
research was used for collecting the information and to some extend observation also helped
the researcher to give some additional information.

VARIABLES: Sex, age, educational qualification, experience

INTERVIEW

This method was also adopted for data collection. The interview was mainly done with
Managers so that they will give more details about the kind of appraisal methods they were
following in the past and the present. The details are as follows.

TECHNIQUES USED FOR ANALYSIS

The most convincing and appealing ways in which data may be presented are tables, charts
and pictures. Pictorial representation helps in quick understanding of the data Charts have
greater memorizing effect as the impressions created by them last much longer than those
created by the figure. A chart can take the shape of either a diagram or a graph

22
To analyze the collected data, simple tool of percentage methods issed. The study diagram
representations are adopted. The data are presented through different types of diagram are as
Follows

1. Table
2. Charts
3. Bar diagram

3.4 IT INDUSTRY APPRAISAL SYSTEM

A detailed discussion with HR head of one of the leading POS Software IT Company, gave
us the insight in the performance appraisal system followed in the company. The appraisal
model which is followed on an annual basis starting from the month of April to March. Head
of Department's Performance Appraisal was done using Management by Objectives method
and workers Performance Appraisal was done using 900 methods by their own department
heads. The same method was being used by the company from the beginning to the present
time.

Process for workers

Appraisal sheet will be given 45 days before the appraisal month to the HOD who will fill all
general information about the workers and start appraisal on individual basis. During that
process worker's past one-year work history will be filled along with recommendation to HR
Department General Manager. Head of the Human resource. Head of Department will decide
final promotion of the staff if necessary. Then Head of the Human resource. Head of
Departinent will find out any problems analyzed in that period, if found training or
counselling will be given to solve that problem.

Process for Head of Department

In the beginning of each financial year HOD will prepare KIP (Key Index Points)/MBO, only
three points will be there, but that will cover the whole working arca of the company. What
they can fulfill and achieve during the year, after the period what they have attained and what
was their goal in the beginning is compared problems are found out if any found training or
counselling will be given to solve that problem. From the HR we come to know that these
methods were highly effective in the whole IT industry as well, that is why they did not
changeit up to the present

23
 Chapter 4

DATA ANALYSIS AND INTERPRETATION

4.1 GENDERWISE CLASSIFICATION OF RESPONDANTS

TABLE 4.1

CLASSIFICATION No. of RESPONSES PERCENTAGE

MALE 40 80%

FEMALE 10 20%

TOTAL 50 100%

90%

80%
80%
70%

60%

50%

40%

30%

20%
20%
10%

0%
MALE FEMALE

Figure 4.1

Interpretation

From the above table it can be inferred that 80 of respondents were male and 20% were
females.

24
4.2 AGE WISE CLASSIFICATION OF RESPONDANTS

TABLE 4.2

CLASSIFICATION No. of RESPONSES PERCENTAGE

20-30 25 50%

31-40 15 30%

41-50 07 14%

51-60 03 06%

TOTAL 50 100%

60%

50%
50%

40%

30%
30%

20%

10% 14%

6%
0%
20-30 31-40 41-50 51-60

Figure 4.2

Interpretation

From the above table it can be inferred that 50% of respondents was in 20-30 year's age, 30%
was in 31-40 year's age, 14% of the respondents was in 41-50 year's age. 6% of the
respondents was in 51-60 year's age.

25
4.3 EXPEREINCE WISE CLASSIFICATION OF RESPONDENTS

TABLE 4.3

CLASSIFICATION No. of RESPONSES PERCENTAGE

Less Than 3 Years 20 40%

04-08 Years 17 34%

09-15 Years 10 20%

More Than 15 Years 03 06%

TOTAL 50 100%

45%

40%
40%
35%
34%
30%

25%

20%
20%
15%

10%

5%
6%
0%
Less Than 3 Years 04-08 Years 09-15 Years More Than 15 Years

Figure 4.3

Interpretation

From the above table it can be inferred that 40% of the respondent's experience are less than
3 years. 34% of the respondent's experience is 4-8 years, 20% of the respondent's experience
is 9-15 years, 6% of the respondent's experience are more than 15 years

26
4.4 DEPARTMENT WISE CLASSIFICATION OF RESPONDANTS

TABLE 4.4

CLASSIFICATION No. of RESPONSES PERCENTAGE

HR DEPARTMENT 01 02%

IT DEPARTMENT 01 02%

ENGINEERNG DEPARTMENT 05 10%

ACCOUNTING DEPARTMENT 03 06%

FRONT OFFICE DEPARTMENT 08 16%

HOUSE KEEPING DEPARTMENT 10 20%

FOOD & BEVERAGE DEPARTMENT 12 24%

SALES DEPARTMENT 02 04%

SECURITY DEPARTMENT 08 16%

TOTAL 50 100%

27
 30%

25%

24%

20%
20%

15% 16% 16%

10%
10%

5% 6%
4%
2% 2%
0%

Fig. 4.4

Interpretation

From the above table it can be inferred that 2% of the respondents were from HR
Department, 2% from IT Department, 10% from Engineering Department, 6% from
Accounting Department, 16% from the Front Office Department, 20% from the House
Keeping Department, 24% from Food & Beverage Department, 4% from Sales Department
and 16% of Security Department.

28
4.5 QUALIFICATION WISE CLASSIFICATION OF RESPONDANTS

TABLE 4.5

CLASSIFICATION No. of RESPONSES PERCENTAGE

UG Degree 21 42%

Other 11 22%

Diploma 14 28%

Post Graduate 04 08%

TOTAL 50 100%

45%

40% 42%

35%

30%

25% 28%

20% 22%

15%

10%

5% 8%

0%
UG Degree Other Diploma Post Graduate

Figure 4.5

Interpretation

I rom the above table it can be inferred that 42% of the responders have a UG degree. I have
PG degree, 22% have 111. 28% have other qualifications

29
4.6 Who Evaluates your Performance?

TABLE 4.6

OPINION No. of RESPONSES PERCENTAGE

HOD 47 94%

GM 03 06%

External Consultant 0 0%

Others 0 0%

TOTAL 50 100%

100%

90% 94%
80%

70%

60%

50%

40%

30%

20%

10%
6% 0% 0%
0%
HOD GM External Consultant Others

Figure 4.6

Interpretation

From the above table it can be inferred that 94% of the employee performance is evaluated by
the Head of the Department. The Head of the Department that is 3 persons 6% is evaluated by
GM

30
4.7 Does Performance Appraisal is improving Employee Motivation and Job
Satisfaction?

TABLE 4.7

OPINION No. of RESPONSES PERCENTAGE

YES 40 80%

NO 10 20%

TOTAL 50 100%

90%

80%
80%
70%

60%

50%

40%

30%

20%
20%
10%

0%
Yes No

Figure 4.7

Interpretation

From the above table it can be inferred that 80% of the employees believe that performance
appraisal is improving their motivation and job satisfaction, but 20% of the employees think
performance appraisal is not improving their motivation and job satisfaction

31
4.8 Do you have meeting in the beginning to explain & clarify activity task & goals to be
achieved?

TABLE 4.8

OPINION No. of RESPONSES PERCENTAGE

YES 50 100%

NO 0 0%

TOTAL 50 100%

120%

100%
100%

80%

60%

40%

20%

0%
0%
Yes No

Figure 4.8

Interpretation

From the above table it can be inferred that 100% of the employees have a meeting to the
beginning to explain and clarify activity task and goals to be achieved in that year.

32
4.9 Should organization have a fixed duration for Performance Appraisal?

TABLE 4.9

OPINION No. of RESPONSES PERCENTAGE

YES 40 80%

NO 10 20%

TOTAL 50 100%

90%

80%
80%
70%

60%

50%

40%

30%

20%
20%
10%

0%
Yes No

Figure 4.9

Interpretation

From the above table it can be inferred that 100% of the employees agreeing the stating
organization should have a fixed duration for performance appraisal

33
4.10 Whether the Performance Appraisal System is able to improve Performance?

TABLE 4.10

OPINION No. of RESPONSES PERCENTAGE

YES 35 70%

NO 15 30%

TOTAL 50 100%

80%

70%
70%
60%

50%

40%

30%
30%
20%

10%

0%
Yes No

Figure 4.10

Interpretation

From the above table it can be inferred that 70% of the employees Performance Appraisal
System are able to improve Performance and 30% of the Performance Appraisal System is
not able to improve Performance.

34
4.11 Do you think Performance Appraisal System will contribute in identifying
Potential Traits?

TABLE 4.11

OPINION No. of RESPONSES PERCENTAGE

YES 30 60%

NO 15 30%

CANNOT SAY 05 10%

TOTAL 50 100%

70%

60%
60%
50%

40%

30%
30%
20%

10%
10%
0%
YES NO CANNOT SAY

Figure 4.11

Interpretation

From the above table it can be inferred that 60% of the employees think that Performance
Appraisal System will contribute in identifying Potential Traits of themselves, 15% do not
agree that and 10% cannot say.

35
4.12 Do you think Performance Appraisal System will contribute in identifying
Potential Traits?

TABLE 4.12

OPINION No. of RESPONSES PERCENTAGE

PERFORMANCE 03 06%

EXPERIENCE 07 14%

EDUCATIONAL QUALIFICATION 02 04%

ALL OF ABOVE 38 76%

TOTAL 50 100%

80%

70% 76%

60%

50%

40%

30%

20%

10% 14%
6% 4%
0%
PERFORMANCE EXPERIENCE EDUCATIONAL ALL OF ABOVE
QUALIFICATION

Figure 4.12

Interpretation

From the above table it can be inferred that 6% of employee think that promotion is based on
performance, 14% employee thinks it is based on experience, 4% on educational qualification
and 70% thinks all the factors are required for promotion.

36
4.13 Do you think that the past and the present Performance Appraisal System is
Transparent & Free from bias?

TABLE 4.13

OPINION No. of RESPONSES PERCENTAGE

YES 50 100%

NO 0 0%

TOTAL 50 100%

120%

100%
100%

80%

60%

40%

20%

0%
0%
Yes No

Figure 4.13

Interpretation

From the above table it can be inferred that 100% of the employees think that the past and the
present Performance Appraisal System is Transparent & Free from bias

37
4.14 Are you satisfied with the current Performance Appraisal System?

TABLE 4.14

OPINION No. of RESPONSES PERCENTAGE

HIGHLY SATISFIED 28 56%

SATISFIED 13 26%

JUST SATISFIED 09 18%

DISSATISFIED 0 0%

TOTAL 50 100%

60%

56%
50%

40%

30%

26%
20%
18%
10%

0%
0%
HIGHLY SATISFIED SATISFIED JUST SATISFIED DISSATISFIED

Figure 4.14

Interpretation

From the above table it can be inferred that 56 of the employees are highly satisfied with the
current Performance Appraisal System. 26 are satisfied with the current Performance
Appraisal System. 18% are just satisfied with the current Performance Appraisal System

38
4.15 Do IT Industry provide opportunity for growth and development?

TABLE 4.15

OPINION No. of RESPONSES PERCENTAGE

YES 47 94%

NO 03 06%

TOTAL 50 100%

100%

90% 94%
80%

70%

60%

50%

40%

30%

20%

10%
6%
0%
Yes No

Figure 4.15

Interpretation

From the above table it can be inferred that 94% of the employees think II Industry provide
opportunity for growth and development. 6% do not think so.

39
4.16 Does Performance Appraisal help to identify your strength and weakness?

TABLE 4.16

OPINION No. of RESPONSES PERCENTAGE

YES 50 100%

NO 0 0%

TOTAL 50 100%

120%

100%
100%

80%

60%

40%

20%

0%
0%
Yes No

Figure 4.16

Interpretation

From the above table it can be inferred that 100% of the employees agreeing that the
Performance Appraisal helps to identify your strength and weakness.

40
 CHAPTER-5

FINDINGS

 In IT industry the appraisal model which is followed is on an annual basis starting

from the month of April till March. Head of Departments Performance Appraisal was
done using Management by objectives methods and workers Performance Appraisal
was done using 90 methods by their own department heads. The same method was
being used by the company from the beginning to the present time.
 Employee attitude towards the current performance appraisal method is very much
satisfactory, none of the employees said in the survey that they were dissatisfied.
From the HR department, we have found that all the employees are fully cooperative
in the full appraisal process. All employees also agreed the fact that the past and
present appraisal system is transparent and bias free.
 According to the employee's majority of them told that performance appraisal was
able to improve their performance It also increased motivation as well because they
felt that company is interested in their performance and adopting methods to improve
it.
 The majority of the employees also told that performance appraisal system was also
helping in finding their hidden talent and putting into action as well.
 Promotion process in this organization is based on a mix of experience, performance
and educational qualification, in which experience to be the first factor in the IT
industry.
 The company also did provide opportunity for growth and development and also
helped to identify strength, weakness and hidden talent

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 CHAPTER-6

SUGGESTIONS

6.1SUGGESTIONS

 Implement more methods of performance appraisal and update the employees about
the type of method used for performance evaluation.
 The whole performance appraisal should be kept more transparent and free from bias
in the future
 More opportunities should be provided for expressing their ideas and plans to
implement their level performance
 More training should be offered to the mentally stressed staff which improve their
potential and result in top appraisal points
 Overtime should be taken care of at the time of performance appraisal, which would
motivate the employees to perform better for longer hours.
 Suggestion could be obtained from employees regarding framing the performance
appraisal system
 Appraisal feedback is very important in any performance appraisal program. Should
be carefully communicated by making high performers increase their target and low
performers to build up their confidence

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6.2 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. judgment, versatility, health and the like. It also helps in developing strength and
rectifies weakness of the employees.

IT industry has been conducting performance appraisal from the past years from its
formation. Employees were cooperative and fully supporting the performance appraisal in the
institution and it was found to be highly effective in the employee's performance.

IT industry has been running successfully for past several years and has created a good name
among its customers and society. 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 from employees and experienced personnel can further enhance and make the
performance appraisal an ideal evaluation system.

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 BIBLIOGRAPHY

From Books

1. Abu-Dolch. J. & Weir, D. (2007). Dimensions of performance appraisal systems in

Jordanian private and public organizations. International Journal of Human Resource
Management, 18(1), 75-84.
2. Broady-Preston, J. & Steel, L. (2002). Employees, customers, and internal marketing
strategies in LIS. Library Management. 23, 384-393.
3. Cawley, B. D., Keeping. L. M. Levy. P. E. (1998). Participation in the performance
appraisal process and employee reactions: A meta-analytic review of field
investigations. Journal of Applied Psychology, 83, 615-633.
4. Twomey, D. & Harris. D. (2000). From strategy to corporate outcomes: Aligning
huma resource management systems with entrepreneurial intent. International
Journal of Commerce and Management, 10, 43-55.

From Web

1. [Link]
2. [Link]
3. [Link] html
4. [Link]
method/
5. [Link]
know/pages/what-you-need-to-know-about-performance- [Link]
6. [Link]
7. [Link]
forms/pages/performanceappraisal_completedappraisalform.aspx

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QUESTIONNAIRE

Name :

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

Department : ____________________

Qualification : ____________________

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1) Who evaluates your performance?

a) HOD

b) GM

c) External consultant

d) Others

2) Does Performance Appraisal is improving Employee Motivation and Job

Satisfaction?

a) Yes

b) No

3) Do you have meeting in the beginning to explain & clarify activity task & goals to be
achieved?

a) Yes

b) No

4) Should organization have a fixed duration for Performance Appraisal?

a) Yes

b) No

5) Whether the appraisal system is able to improve performance?

a) Yes

b) No

46
6) Do you think that the Performance Appraisal System will also contribute in
Identifying Potential Traits?

a) Yes

b) No

c) Cannot say

7) Promotion process in the organization is based on-

a) Performance

b) Experience

c) Educational Qualification

d) All of the above

8) Do you think that the past and the present Performance Appraisal System is
Transparent & Free from Bias?

a) Yes

b) No

9) Are you satisfied with the current Performance Appraisal System?

a) Highly satisfied

b) Satisfied

c) Just satisfied

d) Dissatisfied

10) Do IT Industry provide opportunity for growth and development?

a) Yes

b) No

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11) Does Performance Appraisal help to identify your strength and weakness?

a) Yes

b) No

12) Do you have any other comments you wish to make? Write Below.

48