Project Assessment Proformace

7/30/2019 Project Assessment Proformace

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PROJECT WORK

PERFORMANCE APPRAISAL SYSTEM

SUBMITTED BY:

Krishna Kumar Yadav(Enrollment No: 06416688512)

UNDER THE GUIDANCE OF:

Dr. Sanchita Bansal

OF

NEWGEN SOFTWARE TECHNOLOGY LTD.

GURU GOBIND SINGH

INDRAPRASTHA UNIVERSITY


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CONTENT INDEX

S.No. PARTICULARS PAGE NO.

1PREFACE

1

2 ACKNOWLEDGEMENT 2

3 EXECUTIVE SUMMARY 3

4 RESEARCH METHODOLOGY 4

5 COMPANY PROFILE 6

6 REVIEW OF LITERATURE 8

7 DATA INTERPARATION & DATA ANALYSIS 18

8 LIMITATIONS 34

9 FINDINGS AND CONCLUSIONS 35

10 BIBLIOGRAPHY 38


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PREFACE

Experience is the best teacher. This saying plays a guiding line in our lives and also in

project reports that are an integral part of the MBA programmed in Indraprastha

University, New Delhi.

Todays age is an age of management. Management is the backbone of any

organization or any activity done. The real success of management lies in applying the

professional management techniques an all managerial activities.

Hence, to attain this objective and to have the outlook of all intricacies of corporate

world I have undertaken the Term Paper Project in PERFORMANCE APPRAISAL

SYSTEM OF NEWGEN SOFTWARE TECHNOLOGY LTD.


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ACKNOWLEDGEMENT

Term Paper during the first semester is the phase of the activity during my study in which

I am expected to expand my creative thinking ability and to get the bring some practical

approach in the subjects . It was a great pleasure working on analysis of inventory

management.

The presentation of this report gives me a feeling of fulfillment, as a stepping stone

towards achieving a master of business administration degree. Normally, it requires a lot

of people support to complete this opportunity to acknowledge their support for me.

First of all I am thankful to Dr. Sanchita Bansal for providing complete guidance and

support for completing this report.

I am thankful to Ms. Neeta Singh (Project Manager), Mr. Deepak Badru (Team Leader)

and Mrs. Kavitha Vijayraghvan for guiding me through out the project development.

I even show my gratitude towards Dr. Ashish , Dr Pooja Malhotra without whose

support my project would not be possible to complete.

I have been able to prepare my report successfully and I acknowledge a special thanks to

all those people without whose support it was impossible for me to make the project

report.


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EXECUTIVE SUMMARY

During the Term Paper project at Newgen Software Technology . I have tried to

cover the glimpse of overall working of the Appraisal Process System of the

organization. Newgen is a large Business Process Management company established on

1992. Aims to be a company that provides highest level of Uptime in BPM in country.

To know the present system of performance appraisal. To know the extent of effectiveness of appraisal system to enhance

motivation at workplace.

To identify and know the area for improvement system.


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RESEARCH METHODOLOGY

Aim of the Research

To ascertain the effectiveness of Performance Appraisal methodology used by the

Organization.

The task of data collection begins after a research problem has been defined and

research design/plan chalked out. While deciding about the method of data collection to

be used for the study, the researcher should keep in mind two types of data viz., primary

and secondary.

The primary data are those which are collected afresh and for the first time, and thus

happen to be original in character.

The secondary data, on the other hand, are those which have already been collected by

someone else and which have already been passed through the statistical process.

Objectives of the study:

The following are the objectives of the study -

To develop my understanding of the subject

Performance Appraisal System implemented in various Organizationsvaries according to the need and suitability. Through my research, I have

tried to study the kind of Appraisal used in the Organization and thevarious pros and cons of this type of system.

To conduct a study on social behavior

Social behavior is a very unpredictable aspect of human life but socialresearch is an attempt to acquire knowledge and to use the same for socialdevelopment.


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To enhance the welfare of employees

The Appraisal system is conceived by the Management but mostly doesnot take into consideration the opinion of the employees. This can lead to

adverse problems in the Organization. Therefore by this study I haveattempted to put forth the opinion of the employee with respect to the

acceptability of the Performance Appraisal System.

To exercise social control and predict changes in behavior.

The ultimate object of my research is to make it possible to predict thebehavior of individuals by studying the factors that govern and guide them.


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COMPANY PROFILE

For the past 20 years, Newgen's pioneering efforts have helped organizations around the

world gain a competitive advantage through increased efficiency and quality, enhanced

service, and bottom line results. This timeline illustrates Newgen's key innovative

accomplishments.

Newgen Software Technologies Limited was founded and incorporated in 1992, in New

Delhi, India. From the beginning, the company's Managing Director Mr. Diwakar Nigam

and Chief Financial Officer Mr. T. S. Varadarajan were committed to striving for

excellence within the software product development field.

Newgen will continue to use its technologies to benefit people as it pursues its objective

of becoming a company that is loved by corporate throughout the world

Fact Sheet

Newgen Defines, Designs and Delivers End-to-end Business Process Management

(BPM) solutions covering the entire spectrum of software services from Workflow

Automation to Document Management to Imaging. These solutions increase our

customers' operational superiority (cost and time per transaction) through our unique

Delivery Model that guarantees superior quality and speed of implementation.

Head-quartered in New Delhi, India the company markets its innovative BPM solutions

in more than 45 countries through its global sales, professional services, support

organizations and global partners.

Global Operation

Newgen Software Technologies Limited produces and markets products and solutions for

corporate worldwide, with a focus on enhancing the quality of life. Our global strategies


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are implemented through our two Regional Office system with bases in the U.S.

Having addressed largely overseas market needs for over a decade, Newgen is

developing its solutions based on a global perspective, giving due attention to the special

characteristics of each regional market. We are striving to be an exemplary corporate

citizen that works in close cooperation with local societies.

With an international commitment to both Traditional and Internet-based market

research, Newgen in conjunction with its global network, conducts strategic research in

multiple localized languages around the world; offering solutions to corporations,

education, health care and non-profit organizations.

Our global network is comprised of locally based market and opinion research

companies, who are selected for their proven experience in providing quality client

service

Our People

At Newgen we believe in the powerof resourceful humans. Our people are our primary

source of competitive advantage and they help us to drive our growth in a planned and

efficient manner. We work towards developing a culture that attracts people with

multidimensional experiences and skills.

Newgen has a strong workforce of over 1100 employees, out of which 5% are engaged in

Research & Development, 27% are into Product Development, 25% are in Applications

Development, 15% in Sales & Marketing and 15% are in Support, 10% in Services and

3% in others. Newgen has development strength of close to 400 Computer Engineers and

MBA's handpicked with great care from the top institutions of the country.


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REVIEW OF LITERATURE

The history of performance appraisal is quite brief. Its roots in the early 20th century can

be traced to Taylor's pioneering Time and Motion studies. But it is not very helpful, for

the same may be said about almost everything in the field of modern human resources

management.

As a distinct and formal management procedure used in the evaluation of work

performance, appraisal really dates from the time of the Second World War - not more

than 60 years ago. Yet in a broader sense, the practice of appraisal is a very ancient art. In

the scale of things historical, it might very well lay claim to being the world's second

oldest profession!

There is, A basic human tendency to make judgments about those one is working with,

as well as about oneself." Appraisal, it seems, is both inevitable and universal. In the

absence of a carefully structured system of appraisal, people will tend to judge the work

performance of others, including subordinates, naturally, informally and arbitrarily. The

human inclination to judge can create serious motivational, ethical and legal problems in

the workplace. Without structured appraisal system, there is little chance of ensuring that

the judgments made in the organization will be lawful, fair, defensible, accurate and

desirable to others. Performance appraisal systems began as simple methods of income

justification. That is, appraisal was used to decide whether or not the salary or wage of an

individual employee was justified. The process was firmly linked to material outcomes. If

an employee's performance was found to be less than ideal, a cut in pay would follow. On

the other hand, if their performance was better than the supervisor expected, a pay rise

was in order.

Little consideration, if any, was given to the developmental possibilities of appraisal. It

was felt that a cut in pay, or a rise, should provide the only required impetus for an


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employee to either improve or continue to perform well.

Sometimes this basic system succeeded in getting the results that were intended; but more

often than not, it failed. For example, early motivational researchers were aware that

different people with roughly equal work abilities could be paid the same amount ofmoney and yet have quite different levels of motivation and performance. These

observations were confirmed in empirical studies. Pay rates were important, yes; but they

were not the only element that had an impact on employee performance. It was found that

other issues, such as morale and self-esteem, could also have a major influence.

As a result, the traditional emphasis on reward outcomes was progressively rejected. In

the 1950s in the United States, the potential usefulness of appraisal as tool for motivation

and development was gradually recognized. The general model of performance appraisal,

as it is known today, began from that time.

Each step in the process iscrucial and is arranged logically. The process as shown in Fig.

below is somewhatidea1ised. Many organizations make every effort to approximate the

ideal process, resulting in first-rate appraisal systems. Unfortunately, many others fail to

consider one or more of the steps and, therefore, have less-effective appraisal system.


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1. Objectives of Appraisal

Objectives of appraisal as stated above include effecting promotions and transfers,

assessing training needs, awarding pay increases, and the like. The emphasis in all these

is to correct problems. These objectives are appropriate as long as the approach in

appraisal is individual.

Appraisal in future, would assume systems orientations. In the systems approach, the

objectives of appraisal stretch beyond the traditional ones. In the systems approach,

appraisal aims at improving the performance, instead of merely assessing it. Towards this

end, an appraisal system seeks to evaluate opportunity factors. These opportunity

variables are more important than individual abilities in determining work performance.

In the systems approach the emphasis is not on individual assessment and rewards or

punishments. But it is on how work the work system affects an individual. In the systems

approach the emphasis is not on individual assessment and rewards or punishments. But

it is on how the work systems affect an individuals performance.


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2. Establish Job Expectations

The second step in the appraisal process is to establish job expectations. This includes

informing the employee what is expected of him or her on the job. Normally, a discussion

is held with his or her superior to review the major duties contained in the job place of

formal performance evaluation.

3. Design Appraisal Programme

Designing an appraisal Programme poses several questions which we need to answers.

They are: -

1. Formals versus informal appraisal

2. Whose performance is to be assessed?

3. Who are the raters?

4. What problems are encountered?

5. How to solve the problems?

6. What should be evaluated?

7. When to evaluate?

8. What methods of appraisal are to be used?


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ASSESSING PERFORMANCE CRITERIA

1. Quality:The degree to which the result or process of carrying out an activity

approaches perfection in terms of either conforming to some ideal way of performing the

activity, or fulfilling the activitys intended purpose.

2. Quantity:

The amount produced, expressed in monetary terms, number of units, or number

of completed activity cycles.

3. Timeliness:

The degree to which an activity is completed or a result produced, at the earliest

time desirable from the standpoints of both co-coordinating with the outputs of others and

of maximizing the time available for other activities.

4. Cost Effectiveness:

The degree to which the use of the organizations resources (e.g. human,monetary, technological and material) is maximized in the sense of getting the highest

gain or reduction in loss from each unit or instance of use of a resource.

5. Need for supervision:

The degree to which a job performer can carry out a job function without either

having to request supervisory assistance or requiring supervisory intervention to prevent

an adverse outcome.

6. Interpersonal impact:

The degree to which as performer promotes feeling of self-esteem, and

goodwill.


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PERFORMANCE APPRAISAL AND DEVELOPMENT

While the term performance appraisal has meaning for most small business owners, it

might be helpful to consider the goals of an appraisal system. They are as follows:

1. To improve the company's productivity2. To make informed personnel decisions regarding promotion, job changes, andtermination3. To identify what is required to perform a job (goals and responsibilities of the job)4. To assess an employee's performance against these goals1. To work to improve the employee's performance by naming specific areas for

improvement, developing a plan aimed at improving these areas, supporting the

employee's efforts at improvement via feedback and assistance, and ensuring the

employee's involvement and commitment to improving his or her performance.

All of these goals can be more easily realized if the employer makes an effort to establish

the performance appraisal process as a dialogue in which the ultimate purpose is the

betterment of all parties. To create and maintain this framework, employers need to

inform workers of their value, praise them for their accomplishments, establish a track

record of fair and honest feedback, be consistent in their treatment of all employees, and

canvass workers for their own insights into the company's processes and operations.

A small business with few employees or one that is just starting to appraise its staff may

choose to use a prepackaged appraisal system, consisting of either printed forms or

software. Software packages can be customized either by using a firm's existing appraisalmethods or by selecting elements from a list of attributes that describe a successful

employee's work habits such as effective communication, timeliness, and ability to

perform work requested. Eventually, however, many companies choose to develop their

own appraisal form and system in order to accurately reflect an employee's performance

in light of the business's own unique goals and culture. In developing an appraisal system

for a small business, an entrepreneur needs to consider the following:

1. Size of staff2. Employees on an alternative work schedule3. Goals of company and desired employee behaviors to help achieve goals4. Measuring performance/work5. Pay increases and promotions6. Communication of appraisal system and individual performance7. Performance planning


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Size of Staff

A small business with few employees may choose to use an informal approach with

employees. This entails meeting with each employee every six months or once a year and

discussing an individual's work performance and progress since the last discussion.

Feedback can be provided verbally, without developing or using a standard appraisal

form, but in many cases, legal experts counsel employers to maintain written records inorder to provide themselves with greater legal protections. As a company increases its

staff, a more formal system using a written appraisal form developed internally or

externally should always be used, with the results of the appraisal being tied to salary

increases or bonuses. Whether the appraisal is provided verbally or in writing, a small

business owner needs to provide consistent feedback on a regular basis so that employees

can improve their work performance.

Alternative Work Schedules

Employees working alternative work schedulesworking at home, working part-time,job-sharing, etc.will most likely need to have their performance appraised differently

than regular full-time staffs in order to be fairly evaluated. An alternative work schedule

may require different duties to perform a job and these new responsibilities should be

incorporated into the appraisal. A small business owner should also be careful to ensure

that these employees are treated fairly with regard to both the appraisal and resulting

promotions.

Company Goals and Desired Performance

The performance of employees, especially in a smaller firm, is an essential factor in any

company's ability to meet its goals. In a one-person business, goal-setting and achieving

is a matter of transforming words into action, but moving the business towards its goals

in a larger firm means that the employer has to figure out each person's role in that

success, communicate that role to him or her, and reward or correct their performance. It

also means that the appraisal should incorporate factors such as collaborative ability and

sense of teamwork, not just individual performance.

Measuring/Assessing Performance

Once a list of tasks and attributes is developed, a small business owner or manager needs

to determine how to measure an employee's performance on these tasks. Measurement

provides another objective element to the appraisal. Ideally, measurement would be taken

against previous performance, whether of the individual employee, the group, or the

company at large. If a company is just developing its appraisal system or does not have a


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baseline performance to measure against, it should develop realistic goals based on

business needs or on the similar performance of competitors.

Pay Increases and Promotions

When developing an appraisal system, a small business owner needs to consider the

connection between the appraisal and pay increases or promotions. While performancefeedback for development/improvement purposes may be given verbally, a written

summary of the individual's work performance must accompany a pay increase or

promotion (or demotion or termination). It is crucial, therefore, that a manager or small

business owner regularly document an employee's job performance.

The method of pay increases impacts the appraisal as well. If a small business uses merit-

based increases, the appraisal form would include a rating of the employee on certain

tasks. If skill-based pay is used, the appraisal would list skills acquired and level of

competency. Appraisals and resulting salary increases that take into account group or

company performance should include the individual's contributions to those goals.

Communicating the System

A performance appraisal system is only effective if it is properly communicated and

understood by employees. When devising an appraisal system for his or her company, an

entrepreneur may want to consider involving staff in its development. Supporters contend

that this promotes buy-in and understanding of the plan, as well as ensuring that the

appraisal takes into account all tasks at the company. If the small business owner is

unable to involve her staff, she should walk through the system with each employee ormanager and have the manager do the same, requesting feedback and making adjustments

as necessary.

Communicating Performance and Planning

Part of the appraisal system is the actual communication of the performance assessment.

While this assessment may be written, it should always be provided verbally as well. This

provides an opportunity to answer any questions the employee may have on the

assessment, as well as to provide context or further detail for brief assessments. Finally,

the employee and the entrepreneur or manager should make plans to meet again todevelop a plan aimed at improving performance and reaching agreed-upon goals for the

following review period. This planning session should relate company and/or group goals

to the individual's tasks and goals for the review period and provide a basis for the next

scheduled review.


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TYPES OF APPRAISALS AND ASSESSMENT TERMS

Traditional

In a traditional appraisal, a manager sits down with an employee and discusses

performance for the previous performance period, usually a single year. The discussion is

based on the manager's observations of the employee's abilities and performance of tasksas noted in a job description. The performance is rated, with the ratings tied to salary

percentage increases. However, as David Antonioni notes in Compensation & Benefits,

"The traditional merit raise process grants even poor performers an automatic cost of

living increase, thereby creating perceived inequity'. In addition, most traditionalperformance appraisal forms use too many rating categories and distribute ratings using a

forced-distribution format." Antonioni suggests the appraisal form use just three rating

categoriesoutstanding, fully competent, and unsatisfac-toryas most managers can

assess their best and worst employees, with the rest falling in between.

Self-Appraisal

Somewhat self-explanatory, the self-appraisal is used in the performance appraisal

process to encourage staff members to take responsibility for their own performance by

assessing their own achievements or failures and promoting self-management of

development goals. It also prepares employees to discuss these points with their manager.

It may be used in conjunction with or as a part of other appraisal processes, but does not

substitute for an assessment of the employee's performance by a manager.

Employee-Initiated Reviews

In an employee-initiated review system, employees are informed that they can ask for a

review from their manager. This type of on-demand appraisal is not meant to replace a

conventional review process. Rather, it can be used to promote an attitude of self-

management among workers. Adherents to this type of review process contend that it

promotes regular communication between staff and managers. Detractors, though, note

that it is dependent on the employees' initiative, making it a less than ideal alternative for

some workers with quiet, retiring personalities or confidence issues.

360-Degree Feedback

360-degree feedback in the performance appraisal process refers to feedback on an

employee's performance being provided by the manager, different people or departments

an employee interacts with (peer evaluation), external customers, and the employee

himself. This type of feedback includes employee-generated feedback on management

performance (also known as upward appraisals). As a company grows in size, a small


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business owner should consider using 360-degree feedback to appraise employees.

Communication in a business of ten people varies wildly from that of a company of 100

persons and 360-degree feedback ensures that an employee's performance is observed by

those who work most closely with him. Small business owners or managers can either

include the feedback in the performance review or choose to provide it informally for

development purposes.

LEGAL ISSUES

Given that the results of a performance appraisal are often used to support a promotion,

termination, salary increase, or job change, they are looked at very closely in employee

discrimination suits. Besides providing a written summary of the appraisal to the

employee, a small business owner would be well-advised to ensure the following with

regards to the system at large:

Job expectations as well as the appraisal system and its impact on employee's workstatus are adequately communicated to all employees

Performance measures are related to the job being performed Managers or co-workers providing input into the appraisal must be sufficiently

trained as to be able to provide objective input

Employees are given timely feedback on performance and a reasonable amount oftime and support in improving their performance

Assistance in developing a system is available through a variety of sources including

consultants, periodicals and books, and software. In addition, given the legal implications

of appraisals, small business owners should have their companies' performanceassessment processes, including training of managers and employees, reviewed by a

qualified attorney.


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DATA INTERPARATION

&

DATA ANALYSISData Collection

Collection of data is the first step in statistics. The data collection process follows theformulation for research design including the sample plan. The data can be secondary or

primary.Collection of Primary Data during the course of the study or research can be

through observations or through direct communication with respondents on one

form or another or through personal interviews. I have collected primary data by

the means of a Questionnaire. The Questionnaire was formulated keeping in mind

the objectives of the research study.

Methods Of Appraisal

The last to be addressed in the process of designing an appraisal programme is to

determine methods of evaluation. Numerous methods have been devised to measure the

quantity and quality of employees job performance. Each of the methods discussed

could be effective for some purposes, for some organizations. None should be dismissed

or accepted as appropriate except as they relate to the particular needs of the organizationor of a particular type of employees.

Broadly, all the approaches to appraisal can be identified into

(i) past-oriented methods

Past-Oriented Methods

Rating Scales: This is the simplest and most popular technique for appraising employee

performance; the typical rating-scale system consists of several numerical scales, each

representing a job-related performance criterion such as dependability, initiative, output,

attendance, attitude, co-operation, and the like. Each scale ranges from excellent to poor.

The rater checks the appropriate performance level on each criterion, and then computes


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the employees total numerical score. The number of points scored may be linked to

salary increases, whereby so many points equal a rise of some percentage

Rating scales offer the advantages of adaptability, relatively easy use and low cost.

Nearly every type of job can be evaluated in a short time, and the rater does not need any

training to use the scale. The disadvantages of this method are several. The raters biases

are likely to influence evaluation, and the biases are particularly pronounced on

subjective criteria such as cooperation, attitude and initiative. Furthermore, numerical

scoring gives an illusion of precision that is really unfounded.

Checklist: Under this method a checklist of statements on the traits of the employee and

his or her job is prepared in 2 columnsviz., a Yes column and a No column. All that

the rater (immediate superior) should is tick the Yes

column if the answer to the statement is positive and in column No if the answer is

negative. A typical checklist is given in the table below. After ticking off against each

item, the rater forwards the list to the HR department. The HR department assigns certain

points to each Yes ticked. Depending upon the number of Yes the total score is


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arrived at. When points are allotted to the checklist, the technique becomes a weighted

checklist. The advantages of as checklist are economy, ease of administration, limited

training of rater, and standardization. The disadvantages include susceptibility to raters

biases (especially the halo effect), use of personality criteria instead of performance

criteria, misinterpretation of checklist items, and the use of improper weights by the HRdepartment.

Forced Choice Method: In this, the rater is given a series of statements about an

employee. These statements are arranged in blocks of 2 or more, and the rater indicates

which statement is most or least descriptive of the employee.

As in the checklist method, the rater is simply expected to select the statements that

describe the rate. Actual assessment is done by the HR Department. This approach is

known as the forced choice method because the rater is forced to select statements, which

are readymade. The advantage of this method is the absence of personal bias in rating.


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The disadvantage is that the statements may not be properly framed they may not be

precisely descriptive of the rates traits.

Field Review Method

This is an appraisal by someone outside the, assessors own department. Usually

someone from the corporate office or the HR department. The outsider reviews Employee

records and holds interviews with the rate and his or her superior. This method is

primarily used for making promotional decision at the managerial level.


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Performance Tests and Observations

With limited number of jobs, employee assessment may be based upon a test of

knowledge or skills. The test may he of the paper-and-pencil variety or an actual

demonstration of skills. The test must he reliable and validated to be useful. Even then,

performance tests are apt to measure potential more than actual performance. In order for

the test to be job related, observations should he made under circumstances likely to be

encountered. Practicality may suffer if costs of test development or administration arc

high.

Essay Method

In the essay method the rater must describe the employee within a number of broad

categories such as:-

(i) The rater's overall impression of the employee's performance.


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(ii) The promo ability of the employee(iii) The jobs that the employee is now able or qualified to perform(iv) The strengths and weaknesses of the employee. and(v) The training and the development assistance required by the employee.

Although this method may be used independently, it is most frequently found incombination with others. It is extremely useful in filing information gaps about the

employees that often occur in the better structured checklist method. The strength of

the essay method depends on the writing skills and analytical ability of the rater.

However many raters do not have good writing skills. They become confused about

what to say. How much they should state and the depth of the narrative.

Employees opinion as to the present appraisal system

Options Responses (in %)

Fully Satisfied 2

Satisfied 24

Cant Say 44

Dissatisfied 30


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Employee perception as to the frequency of appraisal

Options Response (in %)

Once During TheService Period

2

Continuous 92

Never 0

Cant Say 6

If continuous appraisalwhat should be the gap between two appraisal period

Options Response (in %)

Quarterly 20

Half Yearly 44

Yearly 36

How Performance Appraisal affects the productivity of the employees

Motivated Indifferent Demotivated+ Feedback 38 12 -

- Feedback 12 10 28

Neutral 24 21 5


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Who should do the appraisal?

Options Response ( in % )

Superior 24

Peer 0

Subordinate 0

Self-Appraisal 8Consultant 4

All of the above 48

Superior + Peer 16

Does appraisal help in polishing skills and performance area?

Options Response ( in % )Yes 74

No 10

Somewhat 16

If the process of appraisal does not lead to the improvement of the skills and proficiency

of the employees, the very purpose of appraisal becomes illogical. In the surveyconducted it was observed that nearly 74 % of the respondents agree that Performance

Appraisal does leads to polishing the skills of the employees. Nearly 10 % of therespondents view that it does not serve this purpose and around 16 % were not able to

respond as to whether it serve any such purposes or not.

Does personal bias creeps-in while appraising an employee

Options Response ( in % )

Yes 82

No 18

In the process of appraising, both the parties are human being, that is, the one who is

being apprised and the other who is appraising. Thus, there bound to be subjectivityinvolved, be it an objective way of appraising.


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Ranking Method

In this, the superior ranks his or her subordinates in the order of their merit, starting from

the best to the worst. All that the HR department knows is that A is better than B. The

'how' and 'why' are not questioned, nor answered. No attempt, is made to fractionalizes

what is being appraised into component elements. This method is subject to the halo and

regency effects, although rankings by two or more raters can be averaged to help reduce

biases. Its advantages include ease of administration and explanation.

Paired-comparison Method

Under this method the appraiser compares each employee with every other employee one

at a time. For example there are five employees named A, B. C. D and E. Theperformance of A is first compared with the performance of B and a decision is made

about whose performance is better. Then A is compared with C. D and E in that order.

The same procedure is repeated for other employees. The number of comparisons may be

calculated with the help of a formula which reads thus: N(N-1)/ 2 where N stands for the

number of employees to be compared.

Future-oriented Appraisals

Is it not enough if only the past performance is assessed? How an employee can perform

in the days to come is equally important. This can be assessed by focusing on employee

potential or setting future performance goals. The commonly used future oriented

techniques are MBO, psychological appraisals, and assessment centres.

Some practical motivation techniques that you can use to improve motivation in

your workplace

1. Treat Employees as Individuals

Do we make assumptions about what motivates your employees? Some are likely to be

career focused, but others may see their work as a place to make friends and earn money.


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Find out what motivates employees outside of work. Some enjoy a challenge such as a

sporting activity; others may like to be on committees so they can use their organisational

skills. Use their innate talents in the workplace where possible to keep them motivated.

Set goals which stretch their abilities. Make goals SMART - specific, measurable,

achievable, and relevant and time framed.

2. Treat Employees with Respect

Get to know your employees on a personal level, and offer support when needed, even if

it is only to listen to their concerns. Ask your employees for their opinions where

possible, for example if you are changing systems or introducing new equipment. Being

involved in decision making is one of the best motivation techniques. Catch your

employees doing something well and praise them - and if you do this in front of others, it

makes the employee feel even better. Giving employees recognition for their efforts will

motivate them to repeat the process.

3. Provide Opportunities for Employee Learning and Development

Encourage a learning climate, through structured on-the-job training programmes, job

transfers, inter-disciplinary projects and support for further education. Aim to have youremployees constantly learning new skills and gaining new knowledge. This will reduce

the level of stagnation that can easily occur in a business. Promote from within where

feasible - and invest the time and support in developing employees so they can take on

new opportunities. Some managers worry that by offering a high level of training to

employees, they may leave the business for better opportunities elsewhere. Remember

this allows other employees to rise up and take their place! Also the word will spread that

you are a good employer - which may encourage a higher calibre of external job

applicants.

4. Make the Workplace a Fun Place


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Having fun is one of the best motivation techniques. And small things can make all the

difference.

Bringing sweets to team meetings Sharing non-business news through e.g. newsletters Arranging activities such as lunchtime yoga sessions Surprising employees with a birthday cake Asking the employees for their opinion on what would make the workplace a fun

place!

DATA ANALYSIS

Organizations need to employ valid and reliable instruments to measure its performance

and so with their members. Likewise, the policies that guide the organization in assessing

performance must be clear to all its members or else it will be subject to various

interpretations that could have adverse repercussions. The right tools in measuring,

analyzing information and making conclusions must be utilized with utmost care to arrive

at a reasonable decision.

The functions of performance appraisal are various. One, it helps in determining how

every member fulfils his or her role and responsibility. Another, it offers insights how

stakeholders and clients appreciate the services which the organization members

deliver. In addition, with the use of a valid and reliable instrument, an employee can be

appraised comprehensively avoiding the bias of judging his performance based on

isolated observations. With the generated data, supervisors and managers can guide their

employees in improving their competencies for efficacy. Lastly, performance evaluation

can be used as determining instrument for the needed reinforcement to enhance the

employees self-esteem and motivations towards work.


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With those purposes that evaluations serve for the organization and its members, the

choice of evaluation instrument is critical. In evaluation, both the qualitative and

quantitative aspect of analysis must be considered. When an instrument is highly

dependent on numerical data, decisions will have to be based on the result of statistical

analysis. When the instrument allows for collecting qualitative data, those must beanalyzed appropriately. In both analyses, generalizations have to be grounded on the data.

Statistically, the levels of analysis can be descriptive, inferential to the rather more

complex analyses. These are essential in making informed decisions. Qualitatively, the

responses must fit those of the quantifiable obtained data. Otherwise, there will be

inconsistency that may lead to failure in making informed decision. With numerical data,

simple statistical analysis can be valuable already. In doing so, one can have a grasp of

the performance holistically.

Performance has to be evaluated holistically, or else the evaluation fails. On the merits of

having high performance standards, with several components being evaluated, specific

weights must be apportioned to the components. This reduces bias and so increases the

validity and reliability of the evaluation process. Hence, evaluators cannot just set their

eyes on a fluke in the data when everything else in the data says otherwise.

There is a joke among researchers and academics, numbers do not lie but the interpreters

of the data can do so. Statistical quandary can either result from manipulation of data or

from the incompetency due to lack of knowledge to the side of the evaluator or

researcher. If these happen, then the interpretations of the evaluator can be judged a hoax.

Here is one case to illustrate statistical quandary. Assuming that a company is using a

valid and reliable instrument that combines both quantitative and qualitative measures of

constructs; that the performance evaluation is taken at several times and data is obtained

from various groups; that the performance is evaluated in three different components; and

that the policy states that an employee to move from ranks must obtain a very satisfactory


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rating during the period of evaluation; evaluators should be able to arrive at an informed

decision. Newgen has all those set in the system, but surprisingly its board of evaluators

could not decide whether to promote an employee to a higher rank because with one

group at one time in that year, the employee had an unsatisfactory rating.

In Newgen employee, filed for a promotion. The board reviewed her records but did not

arrive at the point when they need to make a decision. She was evaluated for the past

year, 16 times, in three terms, among different groups at different time intervals. This

case can be considered like a panel study.

She had 97% attendance efficiency. She had actively been involved in her organization

through her pro-bono services. She had continuing education and professionaldevelopment. She is even recognized in her participation as resource person, speaker and

researcher locally and internationally. She has been serving the company for more than

five years, and never actually got a promotion coming from her supervisors initiative.

But, becauseshe failed in one out of the 16 evaluations, her request for promotion is still

on the table of discussion, yet in all the rest of her evaluations she scored very

satisfactory to outstanding.

Applying simple descriptive statistics, one should understand that the power of one is

insignificant to the value of 15 among 16 sets of evaluation data. The data will nearly

show that 6.25% of the respondents does not approve of her performance. But the data

also shows that over the entire whole group surveyed appreciated her performance to be

very satisfactory (93.75%). There are actually more groups who gave Zhasha outstanding

rating for her performance.

The presiding officer of the evaluation board argues that an employee to merit promotion

should have very satisfactory rating in all components during the term of evaluation.

To arrive at a qualitative interpretation of the value, the statistician applies taking the

general average or mean of the scale responses. The general average of all the ratings in


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the term of evaluation says that Newgen had very satisfactory rating, but the evaluators

eyes were so focused on that single group that gave her an unsatisfactory rating.

With such kind of analysis, the other ratings have lost value. The judgment was bias

based on single isolated case. The role of evaluation using several cases, at different

terms has not served its cause. One can see then that the evaluation used was not to obtain

a comprehensive understanding of ones performance, but or is it a mere instrument to

find fault?

That single case should not be singled out nor should it be emphasized. But the evaluators

assume that is how the system is. If so, there is a problem with the existing system, not in

the evaluation instrument, not in its administration, but in the system of thinking of thoseinterpreting the data and those making decisions out of the data that they have. The said

case should call the attention of the employer to reflect and consistently aspire to be more

effective in the work. Newgens ratings were consistent, so far as the numbers tell

throughout the evaluation period, yes except at one single case. But the overall rating for

that term where the fluke is still says that she was very satisfactory in three components

being evaluated.

Probably, it is the definition of the component that causes the misinformation. This is

because the evaluators assume that the component refers to any of the elements in the

period of evaluation. That broad construct would then mean to include timing, case,

number of respondents, performance areas and others. But it should not exclude the

general rating or average score and interpretation. Yet, the policies which are accessible

to all employees do not tell in all components and it does not define what

components are and what they include.

The illustration teaches us that policy ambiguity, the inadequate knowledge of evaluators

in examining and interpreting numerical data can result to a dilemma. My basis of

analysis was merely on the level of applying descriptive statistics. To arrive at a


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justifiable conclusion to Newgens case or at least a reasonable decision, I challenge her

evaluators to place the data in various statistical analyses to test the hypothesis: That

Newgens performance during the period of evaluation is not satisfactory.

I do see the merit of putting the highest benchmark because that will reinforce

productivity. Although, Newgen Inc., may be too idealistic to assume that an employee

can get 100% very satisfactory rating in all components. For Newgen, in the three panel

surveys conducted she had received 100% very satisfactory rating. However, that is not

how the evaluators see the case because their ignorance dictates them the very

satisfactory performance is not statistically significant and it is not consistent, since they

are looking at a tree and assume that it is the forest.

This case is so revealing that a company can strive to keep the strictest measure without

applying the least reasonable tool to come up with decisions over elementary statistical

figures. It is saddening that while the company intends to maintain high standards, the

standard of thinking of its administration is to abide by the pre-existing system without

actually interrogating how the system really work for organizational productivity and the

motivation of its employees.

More than 90 percent of private sector organizations have some type of performance

appraisal system in place because they believe the systems are effective.


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Performance Appraisal Results-2011

Employee Feedback on the Process

In September 2011, the Human Resources Department surveyed employees, with1,324 responses.

A clear majority of the survey participants responded favorably to the EmployeePerformance Appraisal Process, including the appraisal form and each phrase of

the process.

The rating response ranged from 56% to 85% favorable regarding thePerformance Planning and Performance Review Phases of the process.

Survey results suggest that more training and coaching are needed to increase thenumber of supervisors conducting performance discussions throughout the year

and providing feedbackordemonstrating ways to improve employee

performance.

80

987

3934

993

890

500

1000

1500

2000

2500

3000

3500

4000

4500

UNSATISFACTORY HAS POTENTIAL FULLY

SUCCESSFUL

SUPERIOR DISTINGUISHED


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LIMITATIONS

A few limitations and constraints came in way of conducting the present study, under

which the researcher had to work are as follows:

Although all attempts were made to make this an objective study, biases on the partof respondents might have resulted in some subjectivity.

Though, no effort was spared to make the study most accurate and useful, thesample Size selected for the same may not be the true representative of the

Company, resulting in biased results.

This being the maiden experience of the researcher of conducting study such asthis, the possibility of better results, using deeper statistical techniques in analyzing

and interpreting data may not be ruled out.


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FINDINGS AND CONCLUSIONS

The following are the suggestions and conclusions derived from this particular

research study

Objectivity

One manager's idea of "self-starting ability" can be quite different than

another's idea. The question then arises as to how does one objectively

evaluate "creativity ? If greater amount of objectivity can be infused into the

Appraisal system, it can help to bring more transparency.

Effective Communication

One function of performance appraisals is to help employees develop so they

can contribute more effectively. In order for the employees to develop and

learn they need to know what they need to change, where (specifically) they

have fallen short, and what they need to do. If a manager assigns a 1

(unsatisfactory) on a scale of 5, it does not convey much information to an

employee. It just says the manager is dissatisfied with something. In order to

make it meaningful and promote growth, far more information must be added

to the appraisal process and the related information should be transparently

shared with the employee.

Fairness

Most employees resist being classified at the low end of the scale. Employees

who are low rated are more likely to resist the evaluation of the superior and

argue, claiming that personal bias was involved in the ratings.


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Managerial Efficiency

The implementation of a Performance Appraisal System rests on the shoulders

of the manager and he must ensure that it is done properly. A good manager

can make an average appraisal system work and vice-versa.

The analysis and interpretation of data on study of performance appraisal techniques and

its application to enhance motivation at workplace led to the following conclusions:

1. The promotions rule though defined need to be communicated to every employeebefore appraisal process is done and also justify the promotion as a result of the

appraisal. That the promotion policy followed differs at different position andcategory. Uniformity has to there in the implementation of promotion policy at all

levels.

2. The appraisal outcome has to be used frequently for the purpose of reward onperforming well together with the feedback on the performance. Also when

performance goes down employee has to be given feedback and motivated to do

better.

3. The organization at present doesnt provide career planning and career suggestionplans.

4. In organizations feedback is being provided to the employee though on a fewoccasion.

5. Performance appraisal in maximum organizations is done on an annual basis.

6. More emphasis is on training and job rotation as remedial measures.


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7. The mechanism of counselling pre-performance and post-performance is not inpractice at the organization in strict term.

Recommendations

A new performance appraisal system should be developed and implemented as

soon as possible, and it should incorporate the following features;

Progress against individual objectives Setting and recording of new objectives, with clear links to the businessplan.

Discussion and clarification of role and responsibilitiesIdentification of required competencies, and measurement.Identification of short term training needs linked to business planDiscussion on career aspirations and identification of development needsPrioritisation of training and developmentIdentification of barriers to individual and team performanceOverview of individual performanceOverview of team performanceA broad ranged rating system for final score

Design of systemengagement with staff

Passenger Focus staff at all levels should be involved in the design, consultation

and approval of the new system.

Multi-Source Feedback

Further discussions should take place between the Executive Management Team

and Staff Forum to investigate the feasibility and potential benefits of multisource

feedback, including 360 degree feedback and self appraisal.

Training and Guidance

Prior to launch of the new system, training should be given to all managers on

the purpose, system, delivery and outcomes of performance appraisal. Guidance

should be developed for staff receiving appraisals.

Performance ManagementPassenger Focus Executive Management Team should discuss and agree a

mechanism that ensures the outcomes of performance appraisal are incorporated

into the wider performance management regime more comprehensively. This

mechanism should identify how the results of individual and team performance

relate to organisational performance and objective setting.


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BIBLIOGRAPHY

Some sites name:

http://howtomotivateemployeesnow.com http://eHOW.com http://MANAGEMENTPARADISE.com http://www.leadership-and-motivation-training.com/ http://en.wikipedia.org http://rodrigo75.wordpress.com/

Some books name:

Organizational Behaviour by Robbins. Bacal, R. Performance Management. New York, McGraw Hill.
http://howtomotivateemployeesnow.com/http://howtomotivateemployeesnow.com/http://ehow.com/http://ehow.com/http://managementparadise.com/http://managementparadise.com/http://www.leadership-and-motivation-training.com/http://www.leadership-and-motivation-training.com/http://en.wikipedia.org/http://en.wikipedia.org/http://rodrigo75.wordpress.com/http://rodrigo75.wordpress.com/http://rodrigo75.wordpress.com/http://en.wikipedia.org/http://www.leadership-and-motivation-training.com/http://managementparadise.com/http://ehow.com/http://howtomotivateemployeesnow.com/

Documents

Project Assessment Proformace