Performance Appraisal Significance in the Software Industries in India

7/21/2019 Performance Appraisal Significance in the Software Industries in India

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Title: Performance Appraisal Significance in the Software Industries in India

Author:

Dr. Kiran Kumar Thoti, B.E, MBA, PhD,

Sr. Asst. Professor,

Sree Vidyanikethan Institute of Manaement,Sree Sainath !aar, Tiru"ati# $%&%'(,

Andhra Pradesh,

Ph: )*%#*++(+%%$, *+-(%&+-$%, Email: kirankumar$+%/mail.0om

ABSTRACT

1uman 2esour0e Manaement is a manaement fun0tion that hel"s manaers to 2e0ruit, Sele0t,

Train and De3elo" mem4ers for an orani5ation. Performan0e a""raisal may 4e understood as

the assessment of an indi3idual6s "erforman0e 4ein measured aainst su0h fa0tors as 7o4

kno8lede, 9uality and 9uantity of out"ut, initiati3e, leadershi" a4ilities, su"er3ision,

de"enda4ility, 0o#o"eration, 7udment, 3ersatility, health and the like. The Performan0e A""raisal

System needs to 4e 3ery trans"arent and hel"ful 4oth to the em"loyees and to the orani5ation.

The need is to et a feed4a0k from a""raisers and a""raises, 8orkin in the orani5ation, a4out

the 0urrent state of the PAS. nly after analy5in the 0urrent state of PAS, the human resour0e

manaers 0an o to the ne;t ste" of im"ro3ements in PAS. A sur3ey is therefore re9uired. The

ty"e of resear0h 0hosen is 9uantitati3e in nature. The resear0h is undertaken to as0ertain the

3ie8s


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INTR!"CTIN:

An orani5ation6s oals 0an 4e a0hie3ed only 8hen "eo"le "ut in their 4est efforts. 1o8 to

as0ertain 8hether an em"loyee has sho8n his or her 4est Performan0e on a i3en 7o4= The

ans8er is Performan0e a""raisal. Em"loyee assessment is one of the fundamental 7o4s of 12M,

4ut not an easy one thouh. A""raisin the "erforman0e of indi3iduals, rou"s and orani5ations

is a 0ommon "ra0ti0e of all so0ieties. >hile in some instan0es these a""raisal "ro0esses are

stru0tured and formally san0tioned, in other instan0es they are an informal and interal "art of

daily a0ti3ities. In so0ial intera0tions, "erforman0e is 0ondu0ted in a systemati0 and "lanned

manner to a0hie3e 8ides"read "o"ularity in re0ent years. In sim"le terms, "erforman0e a""raisal

may 4e understood as the assessment of an indi3idual6s "erforman0e 4ein measured aainst

su0h fa0tors as 7o4 kno8lede, 9uality and 9uantity of out"ut, initiati3e, leadershi" a4ilities,

Su"er3ision, de"enda4ility, 0oo"eration, 7udment, 3ersatility, health and the like. Assessment

should not 4e 0onfined to "ast "erforman0e alone. Potentials of the em"loyee for future

"erforman0e must also 4e assessed.

#eaning of performance appraisal:

Performan0e a""raisal is the "ro0ess of o4tainin, analy5in and re0ordin information a4out the

relati3e 8orth of an em"loyee. The fo0us of the "erforman0e a""raisal is measurin and

im"ro3in the a0tual "erforman0e of the em"loyee and also the future "otential of the em"loyee.

Its aim is to measure 8hat an em"loyee does.

!efinition of performance appraisal:

A00ordin to Ed8in. B. ?li""o@ "erforman0e a""raisal is the systemati0, "eriodi0 and an

im"artial ratin of an em"loyee6s e;0ellen0e in the matter "ertainin to his "resent 7o4 and his

"otential for a 4etter 7o4.@ Performan0e a""raisal is the systemati0 8ay of re3ie8in and

assessin the "erforman0e of an em"loyee durin a i3en "eriod of time and "lannin for his

future.

The other terms used for "erforman0e a""raisal are:

Performan0e ratin

Em"loyee assessment

Em"loyee "erforman0e re3ie8

Personnel a""raisal

Performan0e e3aluation


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Em"loyee e3aluation

Merit ratin.

In a formal sense, em"loyee assessment is as old as mankind.

$eatures of performance appraisal:

i. Performan0e a""raisal is the systemati0 des0ri"tion of an em"loyee6s 7o4 rele3ant

strenths and 8eaknesses.

ii. The 4asi0 "ur"ose is to find out ho8 8ell the em"loyees are "erformin the 7o4 and

esta4lish a "lan of im"ro3ement.

iii. A""raisals are arraned "eriodi0ally a00ordin to a definite "lan.

i3. Performan0e a""raisal is not 7o4 e3aluation. It refers to ho8 8ell someone is doin the

assined 7o4. o4 e3aluation determined ho8 mu0h a 7o4 is 8orth to the orani5ation and

therefore, 8hat rane of "ay should 4e assined to the 7o4.

3. Performan0e a""raisal is a 0ontinuous "ro0ess in e3ery lare s0ale orani5ation.

%&ecti'es of performance Appraisal:

To re3ie8 the "erforman0e of the em"loyees o3er a i3en "eriod of time.

To 7ude the a" 4et8een the desired and the a0tual "erforman0e.

To hel" the manaement in e;er0isin orani5ational 0ontrol.

1el" to strenthen the relationshi" and 0ommuni0ation 4et8een su"eriors, su4ordinate

and manaement em"loyees.

To dianose the strenths and 8eakness of the indi3iduals so as to identify the trainin

and de3elo"ment needs of the future.

To "ro3ide feed4a0k to the em"loyees reardin their "ast "erforman0e.

Pro3ide information to assist in the other "ersonal de0isions in the orani5ation.

Pro3ide 0larity of the e;"e0tations and res"onsi4ilities of the fun0tions to 4e "erformed

4y the em"loyees.

To 7ude the effe0ti3eness of the other human resour0e fun0tions of the orani5ation su0h

as re0ruitment, sele0tion, trainin and de3elo"ment.

To redu0e the rie3an0es of the em"loyees.

Pro3ide information to assist in the hr de0isions like "romotions, transfers et0.


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Pro3ide 0larity of the e;"e0tations and res"onsi4ilities of the fun0tions to 4e "erformed

4y the em"loyees.

Need for performance appraisal:

CPro3ide information a4out the "erforman0e ranks 4asin on 8hi0h de0ision reardin

salary fi;ation, 0onfirmation, "romotion, transfer and demotion are taken 4ased on

"erforman0e in India 2ayon.

CPro3ide feed4a0k information a4out the le3el of a0hie3ement and 4eha3ior of

su4ordinates. This information hel"s a4out the le3el of a0hie3ement and 4eha3ior of

su4ordinates. This information hel"s to re3ie8 the "erforman0e of the su4ordinate,

re0tifyin "erforman0e defi0ien0ies and to set ne8 standards of 8ork, if ne0essary.

Pro3ide information 8hi0h hel"s to 0ounsel the su4ordinate.

Pro3ide information to dianose defi0ien0y in em"loyees reardin skill, kno8lede.

Performan0e a""raisals determine trainin and de3elo"mental needs.

To "re3ent rie3an0es and in dis0i"linary a0ti3ities.

PRC(SS $ P(R$R#ANC( APPRAISA)


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(ssentials or prere*uisite of performance appraisal:

The essentials of an effe0ti3e "erforman0e system are as follo8s:

!ocumentation:Means 0ontinuous notin and do0umentin the "erforman0e. It also

hel"s the e3aluators to i3e a "roof and 4asis of their ratins.

Practical and simple format:The a""raisal format should 4e sim"le, 0lear, fair and

o47e0ti3e. on and 0om"li0ated formats are time 0onsumin, diffi0ult to understand, and

do not eli0it mu0h useful information.

('aluation techni*ue: An a""ro"riate e3aluation te0hni9ue should 4e sele0ted the

a""raisal system should 4e "erforman0e 4ased and uniform. The 0riteria for e3aluation

should 4e 4ased on o4ser3a4le and measura4le 0hara0teristi0s of the 4eha3ior of the

em"loyees.

Communication:Fommuni0ation is an indis"ensa4le "art of the "erforman0e a""raisal

"ro0ess. The desired 4eha3ior or e;"e0ted results should 4e 0ommuni0ated to the

em"loyees as 8ell as the e3aluators. Fommuni0ation also "lays an im"ortant role in the

re3ie8 or feed4a0k meetin. "en 0ommuni0ation system moti3ates the em"loyees to

a0ti3ely "arti0i"ate in the a""raisal "ro0ess.

$eed%ac+:The "ur"ose of feed4a0k should 4e de3elo"mental rather than 7udmental to

maintains its utility, timely feed4a0k should 4e "ro3ided to the em"loyees and the manner

of i3in feed4a0k should 4e su0h that it should ha3e a moti3atin effe0t on the

em"loyee6s future "erforman0e.

Personal %ias: Inter"ersonal relationshi"s 0an influen0e the e3aluation and the de0isions

in the "erforman0e a""raisal "ro0ess. Therefore, the e3aluators should 4e trained to 0arry

out the "ro0esses of a""raisals 8ithout "ersonal 4ias and effe0ti3ely.

Standards,goals: The oals set should 4e 0lear, easy to understand, a0hie3a4le,

moti3atin, time 4ound and measura4le.

Challenges of Performance AppraisalIn order to make a "erforman0e a""raisal system effe0ti3e and su00essful, an orani5ation 0omes

a0ross 3arious 0hallenes and "ro4lems. The main 0hallenes in3ol3ed in the "erforman0e

a""raisal "ro0ess are:

-. !etermining the ('aluation Criteria


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Identifi0ation of the a""raisal 0riteria is one of the 4iest "ro4lems fa0ed 4y the to"

manaement. The "erforman0e data to 4e 0onsidered for e3aluation should 4e 0arefully sele0ted.

?or the "ur"ose of e3aluation, the 0riteria sele0ted should 4e in 9uantifia4le or measura4le terms.

/. Create a Rating Instrument

The "ur"ose of the "erforman0e a""raisal "ro0ess is to 7ude the "erforman0e of the em"loyees

rather than the em"loyee. The fo0us of the system should 4e on the de3elo"ment of the

em"loyees of the orani5ation.

0. )ac+ of Competence

To" manaement should 0hoose the raters or the e3aluators 0arefully. They should ha3e the

re9uired e;"ertise and the kno8lede to de0ide the 0riteria a00urately. They should ha3e the

e;"erien0e and the ne0essary trainin to 0arry out the a""raisal "ro0ess o47e0ti3ely.

1. (rrors in Rating and ('aluation

Many errors 4ased on the "ersonal 4ias like stereoty"in, halo effe0t Gi.e. one trait influen0in the

e3aluator6s ratin for all other traitsH et0. may 0ree" in the a""raisal "ro0ess. Therefore the rater

should e;er0ise o47e0ti3ity and fairness in e3aluatin and ratin the "erforman0e of the

em"loyees.

Pro%lems of performance appraisal:

The "ro4lem 8ith su47e0ti3e measure is the ratin 8hi0h is not 3erifia4le 4y others and has the

o""ortunity for 4ias. The rate 4iases in0lude GaH 1alo effe0t G4HThe error of 0entral tenden0y G0H

The lenien0y or stri0tness GdHPersonal "re7udi0e GeHThe re0ent "erforman0e effe0t.

2alo effect:

It is the tenden0y of raters to de"end e;0essi3ely on the ratin of one trait or 4eha3ioral

0onsideration in ratin all others traits or 4eha3ioral 0onsideration. ne 8ay of

minimi5in the halo effe0t is a""raisin all the em"loyees 4y one rate 4efore oin to rate

on the 4asis of another trait.

The error of central tendency:

Some raters follo8 "lay safe "oli0y in ratin 4y ratin all the em"loyees around the

middle "oint of ratin s0ale and they a3oid ratin the "eo"le at 4oth the e;tremes of the

s0ale. They follo8 "lay safe "oli0y 4e0ause of ans8era4ility to manaement or la0k of

kno8lede a4out the 7o4 and "erson he is ratin or least interest in his 7o4.

The leniency or strictness:


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The lenien0y 4ias 0ro"s 8hen some raters ha3e a tenden0y to 4e li4eral in their ratin 4y

assinin hiher rates 0onsistently. Su0h ratins do not ser3e any "ur"ose. E9ually

damain one is assinin 0onsistently lo8 rates.

Personal pre&udice:

If the rater dislikes any em"loyee or any rou", he may rate them at the lo8er end, 8hi0h

may distort the ratin "ur"ose and affe0t the 0areer of these em"loyees.

The recent performance effect:

The raters enerally remem4er the re0ent a0tions of the em"loyees at the time of ratin

and rate on the 4asis of these re0ent a0tions fa3ora4le or unfa3ora4le than on the 8hole

a0ti3ities.

The other factors are considered as pro%lems are:

?ailure of the su"eriors in 0ondu0tin "erforman0e a""raisal and "ost "erforman0e

a""raisal inter3ie8.

Most "art of the a""raisal is 4ased on su47e0ti3ity.

!eati3e ratins effe0ts inter"ersonal relations and industrial relations system.

Influen0e of e;ternal fa0tors and un0ontrolla4le internal fa0tors.

?eed4a0k and "ost "erforman0e inter3ie8 must ha3e a set4a0k on "rodu0tion.

Manaement em"hasis on "unishment rather than de3elo"ment of an em"loyee

"erforman0e a""raisal.

Some ratins "arti0ularly a4out the "otential a""raisal are "urely 4ased on uess 8ork.

A4sen0e of inter#raterrelia%ility.

The situation 8as un"leasant in feed4a0k inter3ie8

#ethods and techni*ues used for performance appraisal:

The 3arious methods and te0hni9ues used for "erforman0e a""raisal 0an 4e 0ateori5ed as the

follo8in traditional and modern methods.

Traditional #ethods of Performance Appraisal:

-. (ssay Appraisal #ethod

This traditional form of a""raisal, also kno8n as ?ree ?orm method@ in3ol3es a des0ri"tion of

the "erforman0e of an em"loyee 4y his su"erior. This method re9uires the manaer to 8rite an

essay des0ri4in ea0h em"loyee6s "erforman0e durin the ratin "eriod. This is em"hases


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Performance appraisal

Essay method.

Straight ranking method.

Paired comparison method.

Critical incident method.

Field review method.

Checklist method.

Graphic rating scale.

Forced distribution method.

Management by objective.

!" degree appraisal.

#ssessment center.

$ehavioral anchored rating scale.

%uman resource accounting.

&raditional method Modern method

e3aluation of o3erall "erforman0e, 4ased on strenthJ8eaknesses of em"loyee6s "erforman0e

rather than s"e0ifi0 7o4 dimension.

/.Straight Ran+ing #ethod

This is one of the oldest and sim"lest te0hni9ues of "erforman0e a""raisal. In this method, the

a""raiser ranks the em"loyees from the 4est to the "oorest on the 4asis of their o3erall

"erforman0e. It is 9uite useful for a 0om"arati3e e3aluation.

0.Paired Comparison

A 4etter te0hni9ue of 0om"arison than the straiht rankin method, this method 0om"ares ea0h

em"loyee 8ith all others in the rou", one at a time. After all the 0om"arisons on the 4asis of the

o3erall 0om"arisons, the em"loyees are i3en the final rankins.

1.Critical Incidents #ethods

In this method of "erforman0e a""raisal, the e3aluator rates the em"loyee on the 4asis of 0riti0al

e3ents and ho8 the em"loyee 4eha3ed durin those in0idents. It in0ludes 4oth neati3e and

"ositi3e "oints. The dra84a0k of this method is that the su"er3isor has to note do8n the 0riti0al

in0idents and the em"loyee 4eha3ior as and 8hen they o00ur.


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3.$ield Re'iew

In this method, a senior mem4er of the 12 de"artment or a trainin offi0er dis0usses and

inter3ie8s the su"er3isors to e3aluate and rate their res"e0ti3e su4ordinates. A ma7or dra84a0k

of this method is that it is a 3ery time 0onsumin method. But this method hel"s to redu0e the

su"erior6s "ersonal 4ias.

4.Chec+list #ethod

The rate is i3en a 0he0klist of the des0ri"tions of the 4eha3ior of the em"loyees on 7o4. The

0he0klist 0ontains a list of statements on the 4asis of 8hi0h the rater des0ri4es the on the 7o4

"erforman0e of the em"loyees.

AH Sim"le 0he0klist method.

BH >eihted 0he0klist method.

FH ?or0ed 0hoi0e method.

5.6raphic Rating Scale

In this method, an em"loyee6s 9uality and 9uantity of 8ork is assessed in a ra"hi0 s0ale

indi0atin different derees of a "arti0ular trait. The fa0tors taken into 0onsideration in0lude 4oth

the "ersonal 0hara0teristi0s and 0hara0teristi0s related to the on#the#7o4 "erforman0e of the

em"loyees. ?or e;am"le a trait like o4 Kno8lede may 4e 7uded on the rane of a3erae,

a4o3e a3erae, outstandin or unsatisfa0tory.

7.$orced !istri%ution

To eliminate the element of 4ias from the rater6s ratins, the e3aluator is asked to distri4ute the

em"loyees in some fi;ed 0ateories of ratins like on a normal distri4ution 0ur3e. The rater

0hooses the a""ro"riate fit for the 0ateories on his o8n dis0retion.

*.Confidential Report:

Assessin the em"loyee "erforman0e 0onfidentially in a traditional method of "erforman0e

a""raisal under this method, the su"erior a""raise the "erforman0e of his su4ordinates 4ased on

his o4ser3ations, the 7udment and intuitions. The su"erior kee"s his 7udment and re"ort

0onfidentially in "erforman0e. The su"erior 8rites the re"orts a4out his su4ordinates strenths,

8eakness, intellien0e, attitude to 8ork ,sin0erity, 0ommitment, "un0tuality, attendan0e, 0ondu0t,

0hara0ter ,friendliness et0. most of the "u4li0 se0tor orani5ations follo8 the same method.

-8. 6roup Appraisal: nder this method, an em"loyee is a""raised 4y a rou" of a""raisers.

This rou" 0onsists of immediate su"er3isors of the em"loyee to other su"er3isors 8ho ha3e


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0lose 0onta0t 8ith the em"loyees 8ork, manaer or head of the de"artment and 0onsultant. The

head of the de"artment or manaement may 4e the 0hairman of the rou" and the immediate

su"er3isor may a0t as the 0oordinator for the rou" a0ti3ities. The rou" uses any one or multi"le

te0hni9ues this method is 8idely used for the "ur"ose of "romotion, demotion and retren0hment

a""raisal.

#odern #ethods of Performance Appraisal:

-. Beha'iorally Anchored Rating Scales

Beha3iorally An0hored 2atin S0ales GBA2SH is a relati3ely ne8 te0hni9ue 8hi0h 0om4ines the

ra"hi0 ratin s0ale and 0riti0al in0idents method. It 0onsists of "redetermined 0riti0al areas of

7o4 "erforman0e or sets of 4eha3ioral statements des0ri4in im"ortant 7o4 "erforman0e 9ualities

as ood or 4ad Gfor e.. the 9ualities like inter#"ersonal relationshi"s, ada"ta4ility and relia4ility,

7o4 kno8lede et0H. These statements are de3elo"ed from 0riti0al in0idents. In this method, an

em"loyee6s a0tual 7o4 4eha3ior is 7uded aainst the desired 4eha3ior 4y re0ordin and

0om"arin the 4eha3ior 8ith BA2S. De3elo"in and "ra0ti0in BA2S re9uires e;"ert

kno8lede.

/. 2uman Resource Accounting #ethod

1uman resour0es are 3alua4le assets for e3ery orani5ation. 1uman resour0e a00ountin method

tries to find the relati3e 8orth of these assets in the terms of money. In this method the

Performan0e a""raisal of the em"loyees is 7uded in terms of 0ost and 0ontri4ution of the

em"loyees. The 0ost of em"loyees in0lude all the e;"enses in0urred on them like their

0om"ensation, re0ruitment and sele0tion 0osts, indu0tion and trainin 0osts et0 8hereas their

0ontri4ution in0ludes the total 3alue added Gin monetary termsH. The differen0e 4et8een the 0ost

and the 0ontri4ution 8ill 4e the "erforman0e of the em"loyees. Ideally, the 0ontri4ution of the

em"loyees should 4e reater than the 0ost in0urred on them.

0. 048 !egree $eed%ac+s:

+' deree feed4a0k, also kno8n as Lmulti#rater feed4a0kL, is the most 0om"rehensi3e a""raisal

8here the feed4a0k a4out the em"loyee6s "erforman0e 0omes from all the sour0es that 0ome in

0onta0t 8ith the em"loyee on his 7o4. +' deree res"ondents for an em"loyee 0an 4e his


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+' deree a""raisal has four interal 0om"onents:

%. Self a""raisal

(. Su"erior6s a""raisal

. Su4ordinate6s a""raisal

-. Peer a""raisal

1. #anagement %y %&ecti'es

The 0on0e"t of Manaement 4y 47e0ti3es6 GMBH 8as first i3en 4y Peter Dru0ker in %*$-. It

0an 4e defined as a "ro0ess 8here4y the em"loyees and the su"eriors 0ome toether to identify

0ommon oals, the em"loyees set their oals to 4e a0hie3ed, the standards to 4e taken as the

0riteria for measurement of their "erforman0e and 0ontri4ution and de0idin the 0ourse of a0tion

to 4e follo8ed. The essen0e of MB is "arti0i"ati3e oal settin, 0hoosin 0ourse of a0tions and

de0ision makin. An im"ortant "art of the MB is the measurement and the 0om"arison of the

em"loyee6s a0tual "erforman0e 8ith the standards set. Ideally, 8hen em"loyees themsel3es ha3e

4een in3ol3ed 8ith the oal settin and the 0hoosin the 0ourse of a0tion to 4e follo8ed 4y them,

they are more likely to fulfill their res"onsi4ilities.

3. Assessment Centers:

Assessment 0entre refers to a method to o47e0ti3ely o4ser3e and assess the "eo"le in a0tion 4y

e;"erts or 12 "rofessionals 8ith the hel" of 3arious assessment tools and instruments.

Assessment 0enters simulate the em"loyee6s on#the#7o4 en3ironment and fa0ilitate the

assessment of their on#the#7o4 "erforman0e. An assessment 0entre for Performan0e a""raisal of

an em"loyee ty"i0ally in0ludes:

Social9Informal ('ents An assessment 0entre has a rou" of "arti0i"ants and also a fe8

assessors 8hi0h i3es a 0han0e to the em"loyees to so0iali5e 8ith a 3ariety of "eo"le and also to

share information and kno8 more a4out the orani5ation.

Information Sessions Information sessions are also a "art of the assessment 0enters. They

"ro3ide information to the em"loyees a4out the orani5ation, their roles and res"onsi4ilities, the

a0ti3ities and the "ro0edures et0.

Assignments;assinments in assessment 0enters in0lude 3arious tests and e;er0ises 8hi0h are

s"e0ially desined to assess the 0om"eten0ies and the "otential of the em"loyees. These in0lude

3arious inter3ie8s, "sy0hometri0 tests, manaement ames et0. All these assinments are

fo0used at the taret 7o4.


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Industry Profile: 3er the last de0ade, India has de3elo"ed into a ma7or and 0redi4le

information te0hnoloy GITH outsour0in 0entre. In India, the soft8are 4oom started some8here

in the late %**'s. Most of the Indian soft8are 0om"anies at that moment offered only limited

soft8are ser3i0es su0h as the 4ankin and the enineerin soft8are.

Information Te0hnoloy GITH, a kno8lede#4ased industry, has the tremendous "otential of

4e0omin an enine of a00elerated e0onomi0 ro8th, "rodu0ti3ity im"ro3ement for all se0tors of

the e0onomy and means of effi0ient o3ernan0e.

The IT soft8are and ser3i0e industry has 4een 0ateori5ed into three 4road se0tors:

o Soft8are Produ0t and Te0hnoloy Ser3i0es,

o IT Ser3i0es, and

o IT Ena4led Ser3i0es.

It enhan0es a00ess to information, "rote0ts 0onsumers, "ro3ides a00ess to o3ernment ser3i0es,

makes skill formation and trainin more effe0ti3e, im"ro3es deli3ery health ser3i0es, and

"romotes trans"aren0y. It "ro3ides tremendous em"loyment "otential and linkaes 4et8een

o3ernment and the "eo"le 4oth at the rural and ur4an le3el. In3estment in kno8lede 4ased

industries 8ill determine the le3el of the 0ountry6s dominant "osition in the 8orld e0onomy in

the ne;t t8o de0ades.

The IT se0tor is one of the fastest ro8in sements of Indian industry, ro8in from 2s. %,(''

0rore in %**(#* to 2s. ',- 0rore in (''#'*. Si;ty "er 0ent G2s. -,%- 0rore in (''#'*H is

a00ounted for 4y soft8are and the remainin -' "er 0ent G2s. (,&$' 0roreH 4y hard8are. IT is an

area 8here the 0ountry has a 0om"etiti3e ede and 0an esta4lish lo4al dominan0e.

Ad3an0ements in IT ha3e a "rofound im"a0t on the e0onomy and the 9uality of human life. The

ITES se0tor in India has emered as a key enine of ro8th for the Indian IT industry and the

te0hnoloy#led ser3i0es industry. This se0tor has ro8n from 2s. (,-'' 0rore in %***#(''' to 2s.

-,%'' 0rore in (''#(''*, "ro3idin em"loyment to &',''' "eo"le. The ma7or users of IT

ser3i0es are the o3ernment, finan0ial ser3i0es and 4ankin, manufa0turin and retail and

distri4ution. !e8 areas likely to emere are 0ommuni0ation, health0are and utilities, as these 8ill

in0reasinly 4e dereulated. 1o8e3er, IT ser3i0es essentially re9uire hih#9uality man"o8er,

state of the art skills, 8orld#0lass tele0om and IT#kno8lede 4ased en3ironment.

Statement of the pro%lem: This "ro7e0t aims to study the "erforman0e a""raisal system G4y

0onsiderin 0ertain im"ortant dimensionsH follo8ed in orani5ations today. The study aims to


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hihliht the sinifi0an0e of su0h "erforman0e a""raisal system in the 0or"orate 0onte;t. Thus

the study tries to esta4lish the link 4et8een "erforman0e a""raisal system and orani5ational

effe0ti3eness.

%&ecti'es of the study

To study "erforman0e a""raisal system in the 0or"orate 0onte;t

To hihliht the sinifi0an0e of "erforman0e a""raisal system in the 0or"orate 0onte;t

and esta4lish the link 4et8een "erforman0e a""raisal system and orani5ational

effe0ti3eness.

Need of the study:

Pro3ide information a4out the "erforman0e ranks 4ased on 8hi0h de0ision reardin

salary fi;ation, 0onfirmation, "romotion, transfer and demotion are taken 4ased on

"erforman0e a""raisal in the 0or"orate 0onte;t.

Pro3ide feed4a0k information a4out the le3el of a0hie3ement and 4eha3ior of

su4ordinates in the 0or"orate 0onte;t.

To "ro3ide information 8hi0h hel"s to 0ounsel the su4ordinate

To "re3ent rie3an0es and in dis0i"linary a0ti3ities in the 0or"orate 0onte;t.

Scope of the study:

To "ro3ide em"loyees 8ith a 4etter understandin of their role and res"onsi4ilities in the

0or"orate 0onte;t.

To in0rease 0onfiden0e throuh re0oni5in strenths and also identifyin trainin needs

to minimi5e 8eaknesses in the 0or"orate 0onte;t.

To im"ro3e 8orkin relationshi"s and 0ommuni0ation 4et8een su"er3isors and

su4ordinates.

To in0rease 0ommitment to orani5ational oals and to de3elo" em"loyees into future

su"er3isors in the 0or"orate 0onte;t.

To assist in "ersonnel de0isions su0h as "romotions or allo0atin re8ards.

)imitations of the study:

The study is 0onstrained only to "erforman0e a""raisal system

The study is limited to the Banalore 0ity only.


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Analysis of "rimary data is done on the assum"tion that the ans8ers i3en 4y the

res"ondents are true and 0orre0t.

Time and 2esour0e 0onstraints.

Type of Research:

!escripti'e research: This resear0h is the most 0ommonly used and the 4asi0 reason for

0arryin out des0ri"ti3e resear0h is to identify the 0ause of somethin that is ha""enin.

The resear0h is "rimarily 9uantitati3e in nature. The study is 4ased on data 0olle0ted throuh

stru0tured 9uestionnaire from the res"ondents and inter3ie8s 0ondu0ted 8ith the res"ondents.

Sampling Techni*ue9method:

The resear0h te0hni9ue used is 2andom Sam"lin method.

Sampling unit:

1e8lett Pa0kard, Sonata soft8are ltd, N Fa"emini 0om"anies has 4een sele0ted as the sam"lin

unit.

!ata collection:

Data is the fa0t of an e3ent. Data is the 4ase for e3ery resear0h 8ork. The data is mainly

0lassified into t8o rou"s.

-< Primary data: These data are athered for our resear0h "ur"ose. This is first hand

information, for this "ur"ose a stru0tured ty"e of 9uestionnaire 8as desined and administered.

/< Secondary data:

Books, 7ournals, 8e4sites et0., ha3e 4een 0onsulted for o4tainin relatedinformation, and also for 0ross0he0kin of "rimary data.

Tools and techni*ues of data collection:

a. To et the res"onse, the 9uestionnaire method 8as used.

4. The 9uestionnaire used in this study 8as a stru0tured one.0. 1ere the 9uestions 8ere arraned in a s"e0ifi0 order and 8ere loi0ally inter0onne0ted

for the resear0h study

d. The ad3antae of the stru0tured 9uestionnaire lies in the redu0tion of 4ias.e. Ouestionnaire 0ontainin of 4oth o"en#ended 9uestions and 0lose#ended 9uestions.

Contact method: Personnel inter'iew

The res"ondents 8ere 0onta0ted "ersonally inter3ie8ed them and 0olle0ted their 3ie8s, o"inions

and suestions i3en 4y them.

Sample Si=e:


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The res"ondents used for sur3ey and for 0ertain 0on0lusion, 8e used %'' res"ondents 8ho are

8orkin in the 0om"anies.

Sample procedure: The study re9uired "ro4a4ility method sin0e the sam"le 8as 0hosen at

random. 1en0e the study 8as dealt 8ith sim"le random tool.

Plan of analysis:

Fal0ulations ha3e 4een done for inter"retation su0h as "er0entae, a3eraes et0. This re"ort has

4een 0o3ered 8ith 3arious ta4les ra"hs and 0harts o4tained from sour0es su0h as 9uestionnaires

and "ersonal inter3ie8 et0. The data 0olle0ted throuh the 9uestionnaire are orani5ed, "ro0essed

and ta4ulated in order to 0reate ra"h and 0harts to make the "ro7e0t understanda4le.

!ATA ANA)>SIS:

'(

The response towards the awareness of the performance appraisal system.

)es

*o

?rom the a4o3e ra"h it 0an 4e inter"reted that the em"loyees are 8ell a8are of the "erforman0ea""raisal system follo8ed in the 0om"any.

+",

-",

+",Response towards the le'el of satisfaction

Fully satised

Partially satised

*ot satised at all


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This sho8s that the "resent "erforman0e a""raisal system is satisfa0tory to some e;tent. ?urther

im"ro3ement in the system 0an 4e made in order to attain full satisfa0tion of the

em"loyees


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?rom the a4o3e ra"h it 0an 4e inter"reted that the many em"loyees "refer annual "erforman0e

a""raisal system.

/-,

+',!,

+,

+!,

Response towards application of performance appraisal

Promotions Salary4etention5&ermination 4ecognition o6 individual

per6ormance

2dentication o6 Poor

per6ormers

?rom the a4o3e ta4le out of %'' res"ondents $ of the em"loyees areed that "erforman0e

a""raisal system hel"s in "romotions, and for * of the em"loyees areed that it hel"s in salary,

for %( of the em"loyees areed that it hel"s in retention, and for + of the em"loyees areed

that it hel"s in 2e0onition of indi3idual "erforman0e, and for ( of the em"loyees areed that

it hel"s in identifi0ation of "oor "erformers.?rom the a4o3e ra"h it 0an 4e inter"reted that the

Performan0e a""raisal influen0es "romotions and also aids in re0onition of indi3idual

"erforman0es.

"

/"

3"

!" 3(/-

++ +3

Response towards the appraiser in the organisation

?rom the a4o3e ta4le out of %'' res"ondents -& of the res"ondents are rated 4y "eers. >hile

( of the em"loyees are a""raised 4y su4ordinates and %% of the res"ondents 4y 0lients and

%% of the res"ondents are a""raised 4y self. ?rom the a4o3e ra"h it 0an 4e inter"reted that

most of the em"loyees are rated 4y "eers and rest of the em"loyees is rated 4y su4ordinates,0lient and fe8 "eo"le are rated 4y self.


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+ / 3 1 !

"

+"

/"

"

3"

/" /"

"

"

/"

+"

2es"onse to8ards the a""raisal system follo8ed in the 0om"any

?rom the a4o3e ta4le out of %'' res"ondents (' of the em"loyees are areed that Qra"hi0

ratin s0ale is one of the method used 4y the 0om"any for doin e3aluation and other (' of the

em"loyees "referred +' deree "erforman0e feed4a0k and other ' of the em"loyees rated

BA2S and other %' of the em"loyees areed MB and only %' of the em"loyees "referred

other methods of e3aluation. ?rom the a4o3e ra"h it 0an 4e inter"reted that the MB and

BA2S are "referred te0hni9ues of e3aluation

-,

11,

!, +,

Responses towards sufficiency of help and guidence pro'ided %y reporting9re'iewing officers

%ighly su7cient

su7cient

2nsu7cient

%ighly 2nsu7cient

?rom the a4o3e ta4le out of %'' res"ondents of the em"loyees are in the o"inion that hel"

and uidan0e "ro3ided to them 4y their re"ortin


19/22

3/,

3+,

++,!,

Relationship %etween PA and pay

%ighly Co8related

Co8related

*ot related

9on:t know

?rom the a4o3e ta4le out of %'' res"ondents -( of the em"loyees are in the o"inion that the

0lose relationshi" 4et8een their "erforman0e a""raisal ratin and 0orres"ondin monetary

re8ard is hihly 0o#related.and for -% it is 0o#related, for %% of the em"loyees it is not

related and for + of the em"loyees are don6t kno8 a4out that. ?rom the a4o3e ra"h it 0an 4e

inter"reted that there is a hih 0lose relation 4et8een "erforman0e a""raisal and 0orres"ondinmonetary re8ard.

;ery high


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. ?rom the study it is found that & of the em"loyees are satisfied 8ith the Self#

A""raisal "ro0ess 4ein follo8ed in the 0om"any.

-. It is found from the study that ( of the em"loyees are a8are of the different traits or

attri4utes a00ordin to 8hi0h they are rated.

$. ?rom the study it is found that *$ of the res"ondents are kno8 a4out their re"ortin

offi0ers.

+. It is found from the study that +$ of the res"ondents areed that the "resent a""raisal

system should 4e re3ie8ed.

&. ?rom the study it is found that the many em"loyees "refer annual "erforman0e a""raisal

system.

. It is found from the study that + of the em"loyees aree that "erforman0e a""raisal

system hel"s in 2e0onition of indi3idual "erforman0e.

*. ?rom the study it is found that -& of the em"loyees are rated 4y "eers.

%'. It is found from the study that ' of the em"loyees are areed that BA2S is one of the

method used 4y the 0om"any for doin e3aluation.

R(C##(N!ATINS

%H The "erforman0e a""raisal should 4ein 4y 0on0entratin on 8hat em"loyees ha3e done

8ell.

(H The 2e"ortin offi0er must fo0us on em"loyee6s key effe0ti3eness areas 8here he should

sho8 results.

H The 2e"ortin


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>i0kens, F. D. G%**(H..ngineering pscholog and human performance: 1ar"erFollins

Pu4lishers.

Documents

Performance Appraisal Significance in the Software Industries in India