Performance Appraisal

ABSTRACT

The purpose of this study was to determine the factors which the employees

in the organization preferring for their appraisal and the employees satisfaction with

the existing appraisal system. The results of the current study can be used by

organizations to develop policies, practices, and strategies regarding their appraisal

system and can create greater efficiencies in meeting strategic business objectives.

Findings were made based on the data collected from 150 employees with the aid of

a questionnaire in which 5-point likert scale and rating scale were employed. Most of

the respondents rated both subjective and objective measures as preferable. It was

also found that some employees surveyed are dissatisfied with their present

organization appraisal methods and there are great chances that they may leave

their employer if they get better job opportunities from any better employer. The

employers must pay attention to this situation and design effective methods as

remedies at the earliest or else they may soon lose their efficient workforce.

CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION TO THE TOPIC

Performance appraisal is a method of evaluating the behaviour of employees in

the work spot, normally including both the quantitative and qualitative aspects of job

performance. It is a systematic and objective way of evaluating both work related

behaviour and potential of employees. It is a process that involves determining and

communicating to an employee how he or she is performing the job and ideally,

establishing a plan of improvement.

Performance appraisal has two over arching goals:

1. To encourage high levels of worker motivation and performance.

2. To provide accurate information to be used in managerial decision making.

These goals are interrelated because one of the principal ways that managers motivate

workers is by making decisions about how to distribute outcomes to match different

levels of performance.

Developing a Performance Appraisal System

Managers can use the information gained from performance appraisal for two main

purposes:

1. Developmental purposes such as determining how to motivate a worker to

perform at a high level, evaluating which of a worker's weaknesses can be

corrected by additional training, and helping a worker formulate appropriate

career goals.

2. Evaluative, decision-making purposes such as deciding whom to promote, how

to set pay levels, and how to assign tasks to individual workers.

Methods of Appraisal

The measures managers use to appraise performance can be of two types:

objective or subjective.

Objective measures such as numerical counts are based on facts. They are

used primarily when results are the focus of Performance appraisal. The number

of televisions a factory worker assembles in a day, the dollar value of the sales a

salesperson makes in a week, the number of patients a physician treats in a day

and the return on capital, profit margin, and growth in income of a business are

all objective measures of performance.

Subjective measures are based on individuals' perceptions, and can be used

for appraisals based on traits, behaviors, and results. Because subjective

measures are based on perceptions, they are vulnerable to many of the biases

and problems that can distort person perception. Because there is no alternative

to the use of subjective measures for many jobs, researchers and managers

have focused considerable attention on the best way to construct subjective

measures of performance.

360-degree appraisal - a worker's performance is evaluated by a variety of

people who are in a position to evaluate it. A 360-degree appraisal of a manager,

for example, may include evaluations made by peers, subordinates, superiors,

and clients or customers who are familiar with the manager's performance. The

manager would then receive feedback based on evaluations from each of these

sources. When 360- degree appraisals are used, managers have to be careful

that each evaluator is familiar with the performance of the individual he or she is

evaluating. While 360-degree appraisals can be used for many different kinds of

workers they are most commonly used for managers.

1.2 STATEMENT OF THE PROBLEM

The performance appraisal of the employees in the organization should be an

effective tool for measuring the employee’s performance. If the performance not

measured in a real manner it will be a critical issue. A study on impact of performance

appraisal was undertaken to study the reasons and ways to improve the condition.

1.3 OBJECTIVES OF THE STUDY

The present study on “impact of performance appraisal system” was undertaken

with the following objectives:

To find whether the existing appraisal system in the organization exactly

measures the employee’s performance.

To find whether the feedback from the appraisal system assists in the

employee’s training and development.

To determine the gaps in the existing system.

To determine what type of appraisal did the employee’s really looking for.

To find is there is any opportunities provided for the employees to improve their

performance.

1.4 SCOPE OF THE STUDY

The scope of the project is ful ly dependent upon the objectives of

the project.

This study can be helpful to the company for conducting any further

research.

The study is also helpful in f inding out the respondent’s opinion

towards certain attr ibutes.

It is also helpful in f inding out the reach and effectiveness of the

performance appraisal system.

This study also serves as a base for understanding the perception

about the employees regarding their performance appraisal.

With the results of the study the company can improve their standards of their

appraisal system

1.5 HYPOTHESIS OF THE STUDY

The study includes the calculation of null hypothesis and alternative hypothesis

by comparing age group of the respondents and preference of the appraisal system.

Null hypothesis is used for testing. It is a statement that no difference exists

between the parameter and statistics being compared to it.

The alternative hypothesis is the logical opposite of the null hypothesis

1.6 LIMITATIONS OF THE STUDY

Time and resource were the major constraints during the execution of the

project. Therefore only a limited number of employees were included in

the project.

The respondents were selected inside the organization only. So it cannot

be generalized as a whole.

Some of the respondents were not even ready to spare time with the

researcher.

There are many respondents who hesitated to answer the questionnaire.

The human behaviour is dynamic and hence the results may not hold

good for a long time.

The results of the survey are totally dependent on the accuracy and

authenticity of the information provided by the respondents.

1.7 CHAPTERIZATION OF THE PROJECT

The project done is being explained under five different chapters:

Introduction

Concepts and review

Research methodology

Data analysis and interpretations

Results and Discussions

CHAPTER 2

CONCEPTS AND REVIEW

2.1 CONCEPTS OF THE STUDY

2.1.1 Definition of Performance Appraisal

A formal and systematic process, by means of which the job relevant strength

and weakness of the employees are identified, observed, measured and developed.

2.1.2 Concept of Performance Appraisal

In the best of worlds, employees would love their jobs, l ike their co-

workers, work hard for their employees, get paid well for their work, have

ample chances for advancement, and flexible schedules so they could

attend to personal or family needs when necessary.

The performance appraisal is to assess a person and let him to

know where he is being standing along with the job. It is to f ind whether

he is performing with his task or not.

2.2 REVIEW OF RELATED LITERATURE

M Bowels and G Coates (1993)

The Management of Performance as Rhetoric on Reality

ARGUMENT:

Managers are mostly appraised by results, but results alone cannot

reflect performance because it is sti l l affected by many other factors.

RESEARCH:

The problems faced by the organization experiencing some

diff icult ies were measuring performance and the extra demands made on

managers.

CONCLUSION:

Management should provide the enabling condit ions through which

work is performed. Performance appraisal should be an opportunistic

means to address performance issues rather than a coherent systematic

process.

D Winstanely and K Stuart-Smith (1996)

RESEARCH:

Conclusive evidence that leads to improved performance is

lacking.

Not enough time is given to the process.

It reinforces modes of intrusive control.

CONCLUSION:

The focus must move away from measurement and judgement

towards developing, understanding and building up trust to allow a

genuine dialogue to take place.

2.3 COMPANY PROFILE

Span systems a matured growing IT services company with 14 years of

experience. The company focussing on optimizing and aligning IT initiatives with

business strategies.

The company has achieved a CMM level 4 and ISO 9001-2000 and expecting to

achieve CMM level 5. Sales offices at USA, Sweden and in India give the company for

easy access to global markets. The company have multiple development centres in

Bangalore and planned to expand their services to all over the India.

The business model deliver value through optimal use of offshore and onsite

resources and through managed relationships under the RM model. Clients get the

value through the pragmatic approach to an engagement rather than a cost based

model or a purely process driven model. Irrespective of activity with the clients the

company have demonstrable methods of showing enhanced productivity.

IT Infrastructure

15000 sq.ft. offshore It development facility

128 kbps dedicated 24*7 internet access with secure firewall protection.

Intel Pentium 4/ windows 2000, sun Solaris and Intel based red Linux servers.

40+ workstations, TCP based 100/1000 MBPS Ethernet LAN on 100 MBPS

switches

Complete data backup recovery infrastructure with disaster recovery facility

In – house training facilities.

2.4 PRODUCT PROFILE

IT Services

Span systems are tailor- made to clients needs and built around the following

key areas relevant to any business enterprise:

Application development- customized software applications based on the

architecture constructed by our business consulting services.

Business intelligence- productivity solutions that empower decision makers to

access data across the enterprise.

Education and training- training and up gradation of skills in data modelling,

UML modelling, data ware housing and business intelligence for corporate.

Contracting

People, project and system recovery support. Span systems offers solutions that

are strategically aligned with corporate business goals. Span systems undertake

mobilization of personnel under placement at the client identified locations. On request,

or at the conclusion of the contract period, the deputed personnel are demobilised from

the client sites.

IT Expertise

Operating systems: windows 98/2000/XP, Red Hat Linux and Sun Solaris.

Development Tools: Visual Basic, Power Builder, Oracle Developer.

Databases: Oracle, Sybase, SQL Server,DB2 and MySql

UML Modelling tools: describe and rational rows.

Data modelling tools: ER Studio, ER Win and power designer

Groupware: Lotus notes/domino, MS exchange.

Business intelligence: Oracle discoverer, business objects and congas.

Data warehouse tools: DT Studio

Web tools: Macro media dream weaver/flash and adobe Photoshop.

CHAPTER 3

METHODOLOGY

3.1 INTRODUCTION

Research is a scientific and systematic search for pertinent information on a

specific topic. Research is an art of scientific investigation. According to Clifford Woody,

“Research comprises defining and redefining problems, formulating hypothesis or

suggested solutions, collecting, organizing and evaluating data, making deductions and

reaching conclusions and at last carefully testing the conclusions to determine whether

they fit the formulating hypothesis”.

3.2 RESEARCH DESIGN

Research design aids the researcher in the allocation of limited resources by

posing crucial choices in methodology.

Research design is the plan and structure of investigation so conceived as to

obtain answers to research questions. The plan is the over all scheme or program of the

research. It includes an outline of what the investigator will do from writing hypothesis

and their operational implications to the final analysis of data.

DESCRIPTIVE RESEARCH DESIGN

The design for this study is descriptive research design. This design

was chosen as it describes accurately the characteristics of a particular

system as well as the views held by individuals about the system. The

views and opinions of employees about the system help to study the

suitabil i ty of the system as well as the constraints that might restrict i ts

effectiveness

3.3 SAMPLING TECHNIQUES

The sampling technique adopted for the purpose of the study is

convenience sampling.

As the name implies a convenience sample means selecting

particular units of the universe to constitute a sample.

SAMPLE SIZE

The sample size of the study is 150. This sample is considered as

representative.

3.4 DATA COLLECTION

PRIMARY SOURCE:

The primary source of data is through Questionnaire.

SECONDARY SOURCE:

The secondary source of information is based on the various details

retrieved from Journals, Websites and Magazines.

The data for this study has been collected through primary sources. Primary data

for this study was collected with the help of Questionnaires and evaluation feedback

forms. The extra information was collected through interviews with the employees at

various companies.

3.5 TOOLS OF THE STUDY

3.5.1 Tool used for data collection:

The tool used for collecting the data is through the questionnaire .

The main reason for selecting the questionnaire method for the study is:

Respondents have adequate t ime to give well thought out answers.

The time of the study was also a l imit ing factor.

Five pointer scales were use through the Questionnaire.

3.5.2 Statistical tools used

Statistical tools l ike Tabulation, Graphic Representations,

percentage analysis and, Chi-Square, are used in the compilation and

computation of data.

Chi-Square Test

The Chi-Square test is one of the simplest and most widely used non-parametric

test in statistical work. It is practically useful in tests involving nominal data. It can be

used for higher scales. It makes no assumptions about the population being sampled. If

Chi-Square is zero it means that the observed and the expected frequencies completely

coincide, while the greater the value of Chi-Square is , the greater would be the

discrepancy between observed and the expected frequencies.

The formula for computing Chi-Square is

CHI-SQUARE = (O-E)2 / E

Where O = Observed Frequency, E = Expected Frequency

The calculated value of chi-square is compared with the table value of chi-square

for given degrees of freedom of specified level of significance. If the calculated value of

chi-square is greater than the table value the difference between the theory and the

observed is considered to be significant, i.e., it could not have risen due to fluctuations

of simple sampling. On the other hand if the calculated value is less than the table

value, the difference between the theory and observation is not considered significant,

i.e., it could have risen due to fluctuations of sampling.

The number of degrees of freedom is described as the number of observations

that are free to vary after certain restrictions have been imposed on the data. For a

uniform distribution, we place one restriction on the expected distribution - the total of

sample observations.

PERCENTAGE ANALYSIS:

Percentage refers to a special kind of ratio. Percentage is used in

making comparison about two or more series of data. Percentage as also used to

describe relationship. It is also used to compare the relative terms of two or more

series of data.

Formula:

Number of respondents ´ 100 Total no. of respondent

3.5.3 AREA OF THE STUDY

To study the Impact of Performance Appraisal System at SPAN Systems,

Bangalore.

3.5.4 CLOSED-ENDED QUESTIONS

Such questions are also called fixed alternative questions. This method is also

facilitators the respondent to answer in some other way on other alternative is provided

as a choice.

CHAPTER – 4

ANALYSIS AND INTERPRETATION

4.1 ANALYSIS OF THE DATA

Table 1

Table showing Sex of the respondents

Source: Primary data

Inference

From the above table it is inferred that out of 50 respondents 88% of them are

male and 12% of the respondents are female.

Figure 1

sex no. of respondents

Simple percentage

Malefemale

13218

8812

Table 2

Table showing age group of the respondents

Source: Primary data Inference

The above table shows that 28% of the respondents are between the ages 24-28,

26% of the respondents are above 38, 18% of the respondents are 29-33 and 34-38

and only 10% of the respondents are between the ages

19-23.

Figure 2

Age group

No. of respondents

Simple percentage

19-2324-2829-3334-38Above 38

1542272739

1028181826

Table 3

Table showing the date of joining of the respondents

Date of joining No of respondents

Simple percentage

71-8081-9091-20002001-07

031530102

02102068


Inference

The above table 68% of the respondents are joined during 2001-07, 20% of the

respondents are joined during 91-2000, 10% of the respondents are joined during 81-90

and 2% of the respondents are joined during 71-80.

Figure 3

Table 4

Table showing the preference of the appraisal


Inference

The above table shows that 65% of the respondents prefer supervisors appraisal,

20% of the respondents prefer subordinates appraisal and remaining 10% of the

respondents prefer peers appraisal.

Figure 4

Preference of appraisal

No of respondents

Simple percentage

PeersSubordinatesSupervisors

1521114

101476

Table 5

Table showing the basis of the performance appraisal


Inference

The above table shows that 80% of the respondents prefer both the quality and

target for their basis of performance appraisal, 12% of the respondents prefer quality

alone and 8% of the respondents prefer target alone.

Figure 5

Basis of performance

appraisal

No of respondents

Simple percentage

QualityTargetBoth

1812120

120880

Table 6

Table showing frequency of the appraisal system


From the above table shows that 50% of the respondents prefer annual

appraisal, 40% of the respondents prefer half yearly appraisal, 6% of the respondents

prefer monthly appraisal and 4% of the respondents prefer 360 degree appraisal.

Figure 6

Frequency of appraisal

No of respondents

Simple percentage

MonthlyHalf yearlyAnnual360 degree

09607506

06405004

Table 7

Table showing performance appraisal


Inference

From the above table shows that 80% of the respondents prefer personality

traits, behaviour and results, 10% of the respondents prefer results alone, 6% of the

respondents prefer behaviour, 4% of the respondents prefer personality trait

Performance appraisal based on

No of respondents

Simple percentage

Personality traitsBehaviourResultsAll the above

06

0915120

04

061080

Figure 7

Table 8

Table showing types of appraisal


Inference

The above table shows that 76% of the respondents prefer both subjective and

objective factors, 12% of the respondents prefer subjective alone and 12% of the

respondents prefer objective alone.

Types of appraisal

No of respondents

Simple percentage

SubjectiveObjectiveBoth

1818114

121276

Figure 8

Table 9

Table showing any gender discrimination

Based on gender, any discrimination

No of respondents

Simple percentage

YesNo

48102

3268


Inference

The above table shows that 68% of the respondents said that there is no gender

discrimination and the remaining 32% said there is gender discrimination.

Figure 9

Table 10

Table showing daily contact at the time of appraisal

Daily contact at the time of appraisal

No of respondents

Simple percentage

SAANCDSD

0972303306

064820224


Inference

The above table that 48% of the respondents agree that they are having daily

contact, 22% of the respondents are having no comment, 20% of the respondents are

disagree with the daily contact, 3% of the respondents are strongly agree with the daily

contact and 2% of the respondents are strongly disagree with the daily contact.

Figure 10

Table 11

Table showing feedback given at the time of appraisal

Feedback given at the time of appraisal

No of respondents

Simple percentage

SAANCDSD

2184301203

1456200802


Inference

The above table shows that 56% of the respondents are agree with the feedback

given at the time of appraisal, 20% of the respondents given no comment, 8% of the

respondents are disagree with the feedback, 14% of the respondents are strongly agree

with the feedback and 2% of the respondents are strongly disagree with the feedback

given at the time of appraisal.

Figure 11

Table 12

Table showing appraisal evaluates strength and weaknesses

Appraisal evaluates strength and weaknesses

No of respondents

Simple percentage

SAANCDSD

3663360906

2442240604


Inference

The above table shows that 42% of the respondents agree with evaluating their

strength and weaknesses, 24% of the respondents are strongly agree with their

evaluation, 24% of the respondents given no comment based on their evaluation,6% of

the respondents are disagree with the evaluation and 4% of the respondents are

strongly disagree with the evaluation of strength and weaknesses.

Figure 12

Table 13

Table showing exactly evaluates the skill gaps

Exactly evaluates the skill gaps

No of respondents

Simple percentage

SAANCDSD

1584391200

1056260800


Inference

The above table shows that 56% of the respondents are agree with evaluation of

skill gaps, 26% of the respondents given no comment, 10% of the respondents are

strongly agree with evaluation of skill gaps and 8% of the respondents are disagree with

the evaluation of the skill gaps.

Figure 13

Table 14

Table showing is the organization providing effective training


The above table shows that 36% of the respondents given no comment regarding

effective training, 32% of the respondents are agree with the effective training, 24% of

the respondents are strongly agree with the effective training, 6% of the respondents

are disagree with the effective training and 2% of the respondents are strongly disagree

with the effective training.

Figure 14

Organization providing effective training

No of respondents

Simple percentage

SAANCDSD

3648540903

2432360602

Table 15

Table shows is the appraisal helps in personal growth


The table shows that 46% of the respondents are agree with their personal growth,

26% of the respondent’s given no comment, 24% of the respondents are strongly agree

with their personal growth and 4% of the respondents are disagree with their personal

growth.

Figure 15

Appraisal helps in personal growth

No of respondents

Simple percentage

SAANCDSD

3669390600

2446260400

Table 16

Table shows appraisal helps in promotion aspects


The table shows that 54% of the respondents are agree with the promotion aspects,

30% of the respondents are strongly agree, 10% of the respondents given no comment

and 6% of the respondents are disagree with the promotion aspects.

Figure 16

Appraisal helps in promotion aspects

No of respondents

Simple percentage

SAANCDSD

4581150900

3054100600

Table 17

Table shows recommendation for job rotation


The above table shows that 80% of the respondents recommended for their job

rotation and 20% of the respondents are not recommended the job rotation for their

development.

Chart 17

Recommendation for job rotation

No of respondents

Simple percentage

YesNo

12030

8020

Table 18

Table shows recommendation for job enlargement


RecommendationFor job enlargement

No of respondents

Simple percentage

Yes No

13515

9010

The above table shows that 90% of the respondents recommended for their job

enlargement and 10% of the respondents are not recommended the job enlargement for

their development.

Figure 18

Table 19

Table shows ideas to recommend for their development


Ideas to recommend for their development

No of respondents

Simple percentage

Yes No

30120

2080

Inference

The above table shows that 80% of the respondents recommended their ideas

for their development and 20% of the respondents are not recommended their ideas for

their development.

Figure 19

Table 20

Table shows face to face interaction with the supervisor

Face to face interaction with supervisor

No of respondents

Simple percentage

Yes

No

105

45

70

30


The above table shows that 70% of the respondents are agreeing with face to

face interaction with the supervisor and 30% of the respondents are not agree with the

face to face interaction with the supervisors.

Figure 20

Table 21

Table shows opportunities to improve performance

Opportunities to improve performance

No of respondent

Simple percentage

s

Yes

No

129

21

86

14


The above table shows that 86% of the respondents are agree with their

opportunities given by the organization and 14% of the respondents are not agree with

the opportunities given by the organization.

Figure 21

Opportunities to improve performance

Table 22

Table shows appraisal changes your attitude/behaviour


Inference

The above table shows that 70% of the respondents are agree with the changes

in attitude and behaviour ant the remaining 30% of the respondents are disagree with

the changes in attitude/behaviour during appraisal period.

Figure 22

Appraisal changes your Attitude /Behaviour

No of respondents

Simple percentage

Yes

No

105

45

70

30

Table 23

Table shows satisfied with CFR

Satisfied with CFR No of respondents

Simple percentage

Yes

No

120

30

80

20


Inference

The above table shows that 80% of the respondents are satisfied with CFR

ratings and the remaining 20% of the respondents are dissatisfied.

Figure 23

Table 24

Table shows increase of salary by performance ratings


Inference

The above table shows that 78% of the respondents are satisfied with the

increase of salary through performance ratings and the remaining 22% of the

respondents are dissatisfied.

Figure 24

Performance ratings increase your salary

No of respondents

Simple percentage

Yes

No

117

33

78

22

Table 25

Table shows happy with present appraisal system


The above table shows that 76% of the respondents are happy with the present

appraisal system and 24% of the respondents are unhappy with the present appraisal

system.

Figure 25

Happy with present appraisal

No of respondents

Simple percentage

Yes

No

114

36

76

24

4.2 HYPOTHESIS TESTING

Chi-square test to find out the comparison between Age group of the respondents and the preference of performance appraisal types.

SUBJECTIVE OBJECTIVE BOTH TOTAL19-23 09 06 - 1524-28 09 06 27 4229-33 - - 27 2734-38 - 06 21 27Above 38 - - 39 39TOTAL 18 18 114 150

Null Hypothesis

There is no relationship between Age group of the respondents and the

preference of performance appraisal types.

Alternative Hypothesis

There is relationship between Age group of the respondents and the

preference of performance appraisal types.

Level of Significance

5% level of significance

Test Statistics

X2 = (Oi- Ei) 2 Ei

Calculation

Inference

The calculated value is 80.42 where as the tabulated value for (r-1) (c-1) i.e., (5-

1) (3-1) for 5% level of significance is 15.507. Thus calculated value is greater than the

tabulated value. The null hypothesis is rejected and the alternative hypothesis i.e.,

There is relationship between Age group of the respondents and the preference of

performance appraisal types is accepted.

CHAPTER 5

Oi Ei (Oi- Ei)2 (Oi- Ei)2/ Ei

9609627002706210039

1.81.811.45.045.0431.923.243.2420.523.243.2420.524.684.6829.64

51.8417.64129.9615.680.921624.20610.49710.49741.99010.4977.6170.230421.90221.90287.609

28.89.811.43.110.180.753.233.232.043.232.350.0114.674.672.95

80.42

5.1 FINDINGS OF THE STUDY

88% of the respondents were male.

Majority of the respondents (28%) are between the age of 24-28 and the low

level (10%) was between the age of 19-23.

68% of the respondents are joined in the year of 2001-07 and the low level 2%

were joined in the year of 1971-80.

65% of the respondents prefer supervisors for their appraisal and the low level

10% prefer peers for their appraisal.

80% of the respondents prefer both the quality and target for their basis of

performance appraisal and low level 8% prefer target for their basis of

performance appraisal.

50% of the respondents prefer the frequency of appraisal as annual and the low

level 4% prefer 360 degree.

80% of the respondents prefer that performance appraisal should be based on

all(personality traits, behaviour and results) and the low level 4% prefer

personality traits.

76% of the respondents prefer both (subjective and objective) the appraisal and

the low level 12% prefer subjective and objective appraisal.

68% of the respondents said that there is no gender discrimination.

48% of the respondents are agree with daily contact at the time of appraisal and

the low level 2% were strongly disagree.

56% of the respondents are agree with feedback given at the time of appraisal

and the low level 2% were strongly disagree.

42% of the respondents are agree with evaluation of the strength and

weaknesses at the time of appraisal and the low level 4% were strongly disagree.

56% of the respondents are agree with evaluation of skill gaps and the low level

8% were disagree with this.

36% of the respondents having no comment based on effective training after

appraisal review and the low level 2% were strongly disagree.

46% of the respondents are agree with the personal growth of the individuals and

the low level 4% were disagree.

54% of the respondents are agree with the promotional aspects through

appraisal and the low level 6% were disagree.

80% of the respondents are recommended for job rotation.

90% of the respondents are recommended for job enlargement.

20% of the respondents recommended some ideas for their development.

70% of the respondents are agreeing with the face to face interaction with the

supervisor.

86% of the respondents are agreeing with opportunities to improve their

performance after appraisal.

70% of the respondents are agreeing with the changes in attitude/behaviour after

appraisal.

80% of the respondents are satisfied with CFR ( critical factor ratings )

78% of the respondents are agreeing with increase in their salary through CFR

ratings.

76% of the respondents are happy with the present appraisal system.

The chi-square analysis show that the comparison between the age of the

respondents and types of appraisal level calculated value of x2.

5.2 SUGGESTIONS

5.2.1 SUGGESTIONS BY THE EMPLOYEES

The organization should conduct the following programmes for their development

which are

3 Modelling software

Seminars in some of the functional areas like

Technical aspects

Business overview

Latest technology

5.2.2 SUGGESTIONS BY THE RESEARCHER

The company should conduct effective training after the performance

appraisal for their employees to improve their performance and also CFR

ratings should be discussed with the employees at the time of performance

appraisal review.

The company should give combination of both (subjective and objective)

appraisal and it should be of half yearly.

The appraiser should keep on contact with the employees and motivate

them for their growth and also to achieve the organizational goals.

When an employee is newly joined in an organisation, he/she should be

given proper information about performance appraisal system and its

impact towards his/her job.

Once an employee is evaluated, he/she has to be informed about their

strength and weaknesses. An employee should aware of the above,

he/she will improve their strengths and weaknesses and also it helps to

increase the productivity of the organisation.

5.3 CONCLUSION

In this study, Performance Appraisal System followed at SPAN systems was

evaluated and found to be good. This project work also reveals the gaps in the existing

system. By providing suitable training and development programmes, the concern

organisation can improve the existing performance appraisal system.

Overall, this project work helps to understand every aspects of performance

appraisal system.

REFERENCES

VSP Rao – Human Resource Management, Anurag Jain for excel books, 2005

ninth edition.

R. Kothari - Research Methodology Methods and Techniques, New age

international publishing, second edition.

Donald R Cooper, Pamela S Schindler – Business Research Methods, Tata MC

Graw Hill, ninth edition.

Performance management – Michael Armstrong and Angela Baron.

Gary Dessler – Human Resource Management Prentice, Half of Indian private

limited 2004 ninth edition.

Website : www.spansystems.com

Website : www.google.com

APPENDIX

IMPACT OF PERFORMANCE APPRAISAL SYSTEM

1. Name (optional) : ___________________

2. Sex : a) Male b) Female

3. Your age group?

a) 19 - 23 b) 24 - 28 c) 29 - 33 d) 34 – 38 e) above 38

4. Designation : ___________________

5. Date of joining : ___________________

6. Whose appraisal do you prefer?

a) Peers

b) Subordinates

c) Superiors

7. Performance appraisal should be based on your

a) Quality

b) Target

c) Both

8. The frequency of appraisal should be

a) Monthly

b) Half yearly

c) Annual

d) 360 degree

9. Appraiser appraised your performance based on

a) Personality traits

b) Behavior

c) Results

d) All the above

10. Which type of performance appraisal do you prefer?

a) Subjective performance appraisal

b) Objective performance appraisal

c) Combination of both

11. Based on the gender, performance appraisal varies. Yes/No

The following questions are graded on a 5 point scale:

1 – Strongly agree

2 – Agree

3 – No comment

4 – Disagree

5 – Strongly disagree

1 2 3 4 5

12. During appraisal, the appraiser had daily contact with you.

13. During appraisal process, you are allowed to give feedback.

14. Do you think the performance appraisal evaluates your strengths

and weaknesses?

15. The appraiser exactly evaluated the skill gaps within you.

16. The organization is providing effective training program for skill

enhancement after your appraisal period.

17. Performance appraisal helps in your personal growth.

18. The appraisal system helps in your future promotion prospects.

19. Do you recommend job rotation for your development? Yes/No

20. Do you recommend job enlargement for your development? Yes/No

21. Do you have any ideas to recommend for your development? Yes/No

If yes, Please specify___________________________.

22. At the time of appraisal documentation review, did you have face to Yes/No

face interaction with your appraiser?

23. Were opportunities given to you to improve your performance? Yes/No

24. Does the performance appraisal review actually change your Yes/No

attitude / behaviour?

25. Are you satisfied with the critical factor ratings? Yes/No

26. Based on the performance ratings, is there any increase in the salary? Yes/No

27. Are you happy with the present appraisal system? Yes/No

28. Do you have any comments on existing performance appraisal in your

Enterprise. Specify your suggestions.

This survey is only for educational purpose. Strict confidentiality will be maintained

and no details will ever be revealed to others.

Documents

Performance Appraisal