HUMAN RESOURCE MANAGEMENT

Management in industry inevitably sub-divides it self into a series of functions such as

sales, production, finance, etc, human resource is one of these function.
Management is the development of people, not the direction of thing.
The concept of human resources management is increasingly becoming a most vital
function of a modern management.
Robert Owen a British industrialist is considered to be the father of personnel
management
The history of Human Resources Management can be traced to England, where
masons, carpenters, leather workers and other craftspeople organized themselves into guilds.
The field further developed with the arrival of the Industrial Revolution in the latter part of 18 th
century. In 19th century Father of Scientific Management, Frederick w. Taylor, gave a practical
approach to Human Resources Management by his Time & Motion studies.

Human is a vital element of any organization. Human Resources play a vital role in
the effective and efficient functioning of an organization. Out of five Ms viz. Men, Material,
Machine, Money and Minute, Men constitute the most important element of an organization, as
men is the only element which acquires all other sources of production. So, Human Resources
are considered to be the most important element of an organization, thus the evolution of Human
Resources management for effective management of manpower.

Peter Drucker stated that job of Human Resources Management is partly a file clerks
job, partly a housekeeping job, partly a social workers job, and partly firefighting, heading off
union trouble. The Human Resources Management function in the present day is much more
than filing, housekeeping, and record keeping. When Human Resources Management strategies
are integrated within the organization, it plays a vital role in developing solutions to Human
Resources problems of an organization. Today it is difficult to imagine any organization working
effectively without efficient HRM policies and activities.

DEFINITIONS
1) The HRM function is concerned with the procurement, development, compensation,
integration, and maintenance of the personnel of an organization for the purpose of
contributing towards the accomplishment of that organizations major goals or objectives.
Therefore, Human Resource Management is the planning, organizing, directing, and
controlling of the performance of those operative functions.-Edwin B. Flippo
2) HRM is that part of management process which is primarily concerned with the human
constituents of an organization. --- E.F.L. Brech of people within organization. Since every
organization is made up of people, acquiring their services developing their skills,
motivating them to higher levels of performance and ensuring that continue to maintain their
commitment to the organization and essential to achieving organizational objectives. Those
organization that are able to acquire develop stimulate and keep outstanding workers will be
both effective and efficiency, if not the organization will be going out of business or the
hazards of stagnating will occur.

NEED FOR THE STUDY

2

Todays corporate world demands sustainability in delivering high quality performance.

Improvement is the rules of the game today; you simply cannot afford to maintain the statements
Today the immediate necessity is the improvement in the effectiveness and efficiency of the
people in the organization
.
Long-term corporate sustainability requires consistent high quality performance by its work
force.
This insight has necessitated of good system of good performance appraisal system.
Performance appraisal has been considered as a most significant and indispensable tool for an
organization, for the information it provides is highly useful in making decision regarding
various personal aspects such as promotions and merit increases

.Performance measures link information gathering and decision making processes which provide
a basis for judging the effectiveness of personnel sub-division such as Recruiting, Selection,
Training and compensation. They help pinpoint weak areas in the primary systems such as
Marketing, Finance and Production. If valid performance data are available, timely, accurate
objective, standardized and relevant, management can maintain consistent promotion and
compensation policies throughout the total system.

SCOPE OF THE STUDY

The scope of the study includes Lower level employees in the organization. The study
aims at finding out the effectiveness of Performance appraisal methods and suggests some
measures to improve the Performance appraisal system
Accurate Information plays a vital role in the organization as whole . It is a
formal procedure used in working organization to evaluate the personalities , Contributions
and potential of group members .

Briefly, three purposes are generally achieved through performance measurement i.e.,
alignment, adaptation and achievement. By alignment, which means that the position of man in
relation to the organization should be in such a way that each shall render support to other for
development and growth. Adaptation refers to human transformation to match with the
organization needs. It is an act of changing ones behavior to make it suitable for a new purpose.
Achievement is something in a desired way to produce greatly.

OBJECTIVE OF THE STUDY

1. The main objective of this project is to give a clear picture of the Performance Appraisal
System conducted in INDIA INFO LINE .
2. To study and measure the level of performance of employees working at INDIA INFO LINE,
Hyderabad.
3. To study the appraisal procedures going on in the organization.

RESEARCH METHODOLOGY

Research has wider scope. Research refers to a scientific and systematic search for
relevant information on a specified topic. It involves defining research objectives and gathering
information through primary and secondary data depending on type of research conducted and
finally analyzing the collected data.

Sources of data
In dealing with any problem it is often found that data at hand are inadequate, and
therefore it becomes necessary to collect data that are appropriate. These are several ways of
collecting the appropriate data, which differ considerably in context u
Here for the purpose of study two kinds of data has been used:

Primary data

Secondary data

Primary data:

The primary data are those, which are collected afresh for the first time from the
respondents directly and thus happen to be original in character. There was no force on the
respondents while collecting the data. With reference to this study, data is collected through
a) Questionnaire
b) Interview method

Questionnaire

Data is gathered by distributing questionnaire to managers and executives. Is prepared

and protested before using it for data collection.

Questionnaire is a structured one consisting of questions, which are close ended having fixed
response pattern with multiple answers.

Interview Method
The study also includes obtaining information from knowledgeable persons. This
interview is an informal of unstructured one with competent and articulate individuals,
executives and professionals of the organization.

Secondary data:
The data includes information obtained from the annual reports, circulars,
journals, information brochures, Academic textbook and Internet

Sample design

A sample design is a definite plan determined before data was actually collected for
obtaining a sample from a given population. In this study random sampling is used .this sampling

method involves purposive or deliberate selection of particular units of the population for
constituting a sample, which represents the population.
The sample design included the respondents from head level to the lower division
clerk. So that the parameters for the study are generalized for all the levels in the organization.

Sample Size:
The sample size taken for survey includes 50 employees.
The aim of the study was to cover employees at all hierarchy level. Therefore, the sample of the
respondents was chosen at each level of the hierarchy in all the departments and services.

Tools for data collection:

Tools used for data collection are as follows:
Discussion (unstructured discussion)
Questionnaires (structured discussion)

1. Unstructured discussions:
Under this method of data collection, the researchers personally interview the
respondents to gather the information. The respondents were asked to present their views and
opinions about the Performance Appraisal system in the Organization. The opinions of the
respondents were used as the primary source of information preparing the study report.

2. Structured Questionnaire:
It is usually associated with the self administrated tools with item of the closed
or fixed alternative type. The respondents feel grater confidence in the anonymity of
questionnaire than in that of any interview. It places less pressure on the subject of immediate

response. These were the reasons for choosing questionnaire as one of the tools for data
collection.

Data collection
Performance Appraisal has been carried out by the questionnaire of 20 questions
related to various aspects of Performance Appraisal circulated among 50 employees of the
company at INDIA INFO LINE.
Before preparing the actual questionnaire, discussions have been conducted. The
headings under the questionnaire cover wide area like employee responsibilities, process task,
risk, suggestions and utilization of resources.

LIMITATIONS OF THE STUDY

Though much care is taken in conducting the study it is not free of limitations.
Certain limitations of the study are:
1) The study is confined only to Hyderabad INDIA INFO LINE out of all branches
throughout India.
2) The major limitation of the study is the limited time period. It was difficult to personally
interview a large number of executives and seek their opinions on

relevant issues.

3) The study did not cover all the employees in the organization.
4) Opinions expressed by the employees in the questionnaire may not be genuine or they
actually feel and there is every chance of bias coming in to the play.
5) Since the organization has strict control, it acts as another barrier for getting data.
6) The sample taken from the study was only 50 and the results drawn may not be accurate.

CHAPTER II
COMPANY PROFILE

COMPANY PROFILE
Industry Profile
The Indian broking industry is one of the oldest trading industries that have been around even
before the establishment of the BSE in 1875. Despite passing through a number of changes in the
post liberalisation period, the industry has found its way towards sustainable growth.
The product offerings of brokerage firms today go much beyond the traditional trading of
equities. A typical brokerage firm today offers trading in equities and derivatives online, most
probably commodities futures, exchange traded funds, distributes mutual funds and insurance
and also offers personal loans for housing, consumptions and other related loans, offers portfolio
management services, and some even go to the extent of creating niche services such as a
brokerage firm offering art advisory services. In the background of growing opportunities for
Investors to invest in India as also abroad, the range of products and services will widen further.
In the offing will be interesting opportunities that might arise in the exchange enabled corporate
bond trading, soon after its commencement and futures trading that might be introduced in the
near future in the areas of interest rates and Indian currency.

10

Indian brokerage industry is highly fragmented. Numerous small firms operate in this space.
Given the growing importance of technology in operations and increasing emphasis on
regulatory compliance, smaller firms might find it constrained to make right type of investments
that will help in business growth and promotion of investor interests.
The way the brokerage industry is run and the manner in which several of them pursued growth
and development attracted foreign financial institutions and investment banks to buy stakes in
domestic brokerage firms, paving the way for stronger brokerage entities and possible scope for
consolidation in the future. Foreign firms picked up stake in some of the leading brokerage firms,
which might lead to creating of greater interest in investing in brokerage firms by entities in
India and abroad.
COMPANY PROFILE
It was originally incorporated on October 18, 1995 as Probity Research and service Private
Limited at Mumbai under the companies Act, 1956 with Registration no: 1193797.We
commenced our operations as an independent provider of information analysis and research
covering Indian businesses, financial market and economy, to institutional customers. We
became a public limited company on April 28,2000 and the name of company was changed to
Probity Research and service Limited .The name of the company was changed to India
Infoline.com on May 23, 2000 and later to India Info line Limited on march 23, 2001.

India info line was founded in 1995 by group of professionals with impeccable educational
qualification and professional credentials. Its intuitional investors include Intel capital (worlds
leading technology company), CDC (promoted by UK govt), ICICI, TDA.

11

INDIA INFOLINE group offers the entire gamut of investment products including stock broking,
Commodities broking, Mutual Funds, Fixed Deposits, GOI Relief Bonds, Post office saving and
life insurance. India Infoline is the leading corporate agent of ICICI Prudential Life Insurance
Company, which is Indias No.1 private sector life insurance company.
www.indiainfoline.com has been the only Indian website to have been listed by none other
Forbes in its Best of the Web survey of global website, not just once but three times in a row
and counting. A must read for investors in south Asia is how they choose to describe India
Infoline. It has been rated as No.1 in the category of Business News in Asia by Alexia rating.
Stock and commodities broking is offered under the trade name 5paisa. India Infoline
Commodities Pvt. Ltd. A wholly owned subsidiary of India Infoline Ltd., holds member ship of
MCX. Com It has more than 800,000 customers. In December 2000, our subsidiary, India
Infoline Insurance services Limited became a corporate agent for ICICI Prudential Life
Insurance Company Limited. And emerged as one of the leading corporate agent for ICICI
Prudential Life Insurance Company Limited.
In the year 2004, company launched commodities broking through our subsidiary India Infoline
commodities private Ltd.
At present company has a network of 73 branches across 36 cities in India we plan to set up 77
additional branches in 50 cities across India for our different business including broking
insurance, Commodities distribution of mutual funds other investment product.

12

13

IIFL (India Infoline Ltd) - Corporate Structure

IIFL - History & Milestones

14

1995

Commenced operations as an Equity Research firm

1997

Launched research products of leading Indian companies, key sectors and the economy
Client included leading FIIs, banks and companies

1999

Launched www.indiainfoline.com

2000

Launched online trading through www.5paisa.com

Started distribution of life insurance and mutual fund

2003

Launched proprietary trading platform Trader Terminal for retail customers

2004

Acquired commodities broking license

Launched Portfolio Management Service

2005

Maiden IPO and listed on NSE, BSE

2006

Acquired membership of DGCX

Commenced the lending business

2007

Commenced institutional equities business under IIFL

Formed Singapore subsidiary, IIFL (Asia) Pte Ltd

2008

Launched IIFL Wealth

Transitioned to insurance broking model

2009
15

Acquired registration for Housing Finance

SEBI in-principle approval for Mutual Fund
Obtained Venture Capital license

2010

Received in-principle approval for membership of the Singapore Stock Exchange

Received membership of the Colombo Stock Exchange

Products: The India Infoline Pvt LTD offers the following products.

E-broking
Distribution
Insurance
E-broking:
Equities
Derivatives
Commodities.
Distribution:
Mutual funds
Govt of India Bonds
Fixed Deposits.
Insurance:
Life insurance policies.
Corporate sector of ICICI.
COMPANY VISION
Our vision is to be the most respected company in the financial services space.
Key promoters of the company
Key promoters of our company are Mr. Nirmal Jain and Mr. Venkataraman, professional with a
good academic and work experience.
Mr. Nirmal Jain has been the chairman and Managing Director of the company since its
incorporation i.e October 18 1995.
Mr.Jain holds a MBA degree from IIM Ahmedabad and is a member Institute of Chartered
Accountants of India and the Institute of Cost Accountants of India. He started his career in 1989
16

with Lever Limited, a subsidiary of Unilever Plc, in their commodities trading and export
division Mr.Jain has a total experience of more than 15 years.
Mr.Venkataraman joined the Board with effect from July 5th 1999. He holds a B-Tech in
Electronics and Electrical Communications Engineering from IIT Kharagpur and an MBA degree
from IIM Bangalore. He has held senior managerial positions in various divisions of ICICI
limited, including ICICI securities limited, their investment banking joint venture with J P
Morgan of USA. He also worked as an equity analyst with BZW and Taib capital Corporation
Limited. He has also held position of Assistant Vice President with G E Capital Services India
Limited their private equity division. He has varied experience of more than 14 years in the
financial services sector

BROKERAGE SERVICES
Online Brokerage: We offer subscribers real time trading on the NSE and BSE Apart from this
we also offer commodities
Trading on the MCX and NCDEX. Customer can directly place orders to buy and sell securities
through our automated order processing system.
Offline Brokerage: We began offering offline brokerage service as a back upto our online
brokerage offering through our branches. This was mainly to address the internet access problem
faced by some of our retail customers.
Competition

17

Broking: we face competition from small retail distributors (traditional) and pan India brokers
like Kotak Securities Ltd S.S Kantilal Ishwarlal securities Ltd, India bulls Securities Ltd,
ICICI Web Trade limited, Geojit, financial Services Ltd etc.
Distribution: we face competition from small retail distributors (typically single outlet
unorganized units), brokers who have a distribution set, old and established distribution
companies like blue chip Corporate Investment Center Limited, Bajaj Capital Ltd, Karvy
Securities Ltd, and banks including their PMS and Wealth Management desks.
Our strength: our strengths are our contents and research online technology and customers
services.

COMPETITORS OF TARNAKA BRANCH

Share khan

SBI

Religare

Indian bulls

Karvy.

CUSTOMERS OF TARNAKA BRANCH

Number of customers are 1500 to 2500

HNIS 1200

RETAIL INVESTORS 1300

18

19

CHAPTER III
PERFORMANCE APPRAISAL AT INDIAN
INFOLINE

Introduction to performance appraisal

Globalization of economy has put the organization under tough competition.

Thus, survival of an organization depends on the performance. We may consider performance of
an organization as the sum of the total performance of each individual.
In fact, performance management has today occupied an important role.
Global economy forced the organizations to be more and more competitive and the last word of
competitiveness is to perform. Thus, performance management is a managerial function for
planning, improving, appraising and rewarding ones performance.
People in the organization work to achieve organizational goals. But, people do
not behave in expected manner. Again, performance is the product of employees ability,
20

knowledge and skill. Once the employee has been selected, trained and motivated, he is then
appraised for his performance.
Performance appraisal is the step where the management finds out how effective it has been at
hiring and placing employees. Hence its evaluation at regular interval is necessary to know
whether employee stand in the organizational context. Thus, appraising the performance of
individuals, groups and organizations is a common practice of all societies.

MEANING:Performance Appraisal is a method of evaluating the behavior of employees in

the work spot, normally including both the quantitative and qualitative aspects of job
performance. Performance refers to the degree of accomplishment of the tasks that make up an
individuals job. In order to find out whether an employee is worthy of continued employment or
not, and if so, whether he should receive a bonus, a pay rise or promotion, his performance needs
to be evaluated from time to time.When properly conducted performance appraisals not only let
the employee know how well he is performing but should also influence the employees future
level of effort, activities, results and task direction.Under Performance Appraisal we not only
evaluate the performance of an employee but also his potential for further development.
Some of the important features of performance appraisal are:
Appraisal of employee serves several purposes they are:
1. Performance appraisal serves as a basis for job change and promotions .
2. Performance appraisal serves as an incentive and feedback to the employees .
3. Performance appraisal serves as a guide for formulating a suitable training and
development program to improve the quality of performance .
4. Performance

appraisal

provides

format

for

dialogue

between

subordinates and improves understanding of personal goal and concerns .

21

superiors

and

5. To facilitate testing and validating selection tests, interview techniques through comparing
their sources with performance appraisal ranks.
6. To provide information for making decisions lay offs retrenchment etc.
7. To ensure organization effectiveness through correcting employee for standard and improved
performance and suggesting the change in employee behavior.

Definitions:A formal definition of Performance Appraisal is : It is the systematic evaluation of the

individual with respect to his or her Performance on the job and his or her potential for
development.
A more comprehensive definition is: Performance Appraisal is a formal, structured system of
measuring and evaluating an employees job related behavior and outcomes to discover how and
why the employee is presently performing on the job and the employee can perform more
effectively in the future so that the employee, organization and society all benefit. Performance
Appraisal refers to all those procedures that are used to evaluate the personality the performance
and the potential of its group members.
The term Performance Appraisal has been defined variedly by some other authors as
follows
According to Flippo, Merit rating is systematic, periodic and, so far as humanly possible, an
impartial rating of an employees excellence in matters pertaining to his present job and to his
potentialities for a better job.
According to Alford & Beatty, performance appraisal is the evaluation or the appraisal of the
relative worth to the company of a mans services on the job.
22

According to Monappa & M.S.Saiyadian, Performance appraisal is a systematic and objective

way of judging the relative worth or ability of an employee in performing his task.
According to Heysel, It is the process of evaluating the performance and qualifications of the
employees in terms of requirements of the job for which he is employed, for purposes of
administration including placement, selection for promotions, providing financial records and
other actions which require differential treatment among the members of a group as distinguished
from actions affecting all members equally.
According to C.D.Fisher,L.F.Schoenfeldt and J.B.Shaw Performance appraisal is the process by
which an employees contribution to the organization during a specified period of time is
assessed.
According to Wendell French Performance appraisal is, the formal, systematic assessment of
how well employees are performing their jobs in relation to established standards and the
communication of that assessment to employees
Individually and collectively, it is a part of all the other staffing process, i.e., recruitment,
selection, placement and induction.

Evolution of performance appraisal:Employee appraisal techniques are said to have been used for the first time during the
First World War, when, at the instance of Walter Dill Scott, the US Army adopted the Man-toMan rating system for evaluating military personnel. During the 1920-30 periods, rational wage
structures for hourly paid workers were adopted in industrial units. Under this system, the policy
of giving grade wage increments on the basis of merit was accepted. These early employee plans

23

were called merit rating programmes, which continued to be so called up to the mid-fifties. By
then most of these plans were of the rating scale type, where emphasis was given to factors,
degrees and points.

In the early fifties, however, attention began to be devoted to the performance of technical,
professional and managerial personnel. Since then, as a result of experiments and a great deal of
study, the philosophy of performance appraisal has undergone tremendous changes.
Consequently, a change has also taken place in the terminology used. Now, the older phrase
merit rating is largely restricted to the rating of hourly paid employees, and is used frequently in
developing criteria for salary adjustments, promotions, transfers, etc. the later phrase, personnel
appraisal, places emphasis on the development of the individual as and widely used to evaluate
technical, professional and managerial personnel.

Importance:
Performance appraisal has been considered as a most significant and indispensable tool
for an organization, for the information it provides is highly useful in making decisions regarding
various personnel aspects such as promotions and merit increases. Performance measures also
link information gathering and decision-making process that provides basis for judging the
effectiveness of personnel sub-divisions such as recruiting, selection, training and compensation.
Performance Appraisal plays an indispensable role in Human Resource Management. It provides
the information about the performance of individuals employed in an organization. It aids in
research in the field of Human Resource Management. It brings out the deficiencies and
shortcomings of the employees due to the discussion and mutual understanding. This gives an
opportunity to the employees to have an insight on their performance and to take corrective

24

measures to improve. A well organized and well administered performance appraisal may help
the Management in determining whether an individual should be considered for promotion. It
helps in self-evaluation use their abilities as jobs are grouped by categories. It aids in personnel
actions such as layoffs, demotions, transfers and discharges; salary increases etc. It provides an
incentive for improving performance. It serves to maintain fair relationships in work groups. It
creates psychological pressure on employees to improve their performance. The performance of
an employee is his resultant behavior on task, which can be observed and evaluate

CRITERIA OF PERFORMANCE APPRAISAL:

Performance Appraisal can be classified into two main categories: Objective criteria and
Subjective criteria.

Objective criteria:
Amount & quality of production, work sample tests, amount of training necessary,
absenteeism are examples of Objective criteria.

Subjective criteria:
Rating of employees, job proficiency by their superiors, peers & subordinates, extent
of upward communication of ideas, contribution to socio-cultural values etc, are examples of
Subjective criteria.

Performance criteria for different classes of employees:

The important criteria which can be used to appraise the performance of different
classes of employees in an organization is as follows:

25

Performance criteria for operatives:

Quantity and quality of output in a given period.

Length of service in the organization.

Amount of Training necessary.

Ratings of the employee by Supervisors.

Work sample tests.

Number of absents in a given period by an employee.

Performance criteria for frontline supervisors:

Quantity and quality of output in a given period.

Labour and material cost per unit of output in a given period.

Total cost per unit of output in a given period.

Rate of absenteeism for a given period.

Rate of turnover for a given period.

Man shifts lost due to stoppage of work in a given period.

Number of accidents in a given period.

Performance criteria for middle-level mangers:

Quantity and quality of output in a given period.

Labour and material cost per unit of output in a given period.

Total cost per unit of output in a given period.

Rationale use of overhead facilities.

26

Coordination among Supervisors.

Degree of knowledge among Supervisors about the corporate goals and policies..

Performance criteria for top level managers:

Return on capital employed.

Labour Productivity Indices.

Degree

of

knowledge

among

Middle

level

Managers

about

Corporate

goals and policies.

Extent to which Middle level Managers regard themselves as Managers and behave
likewise.

Extent of upward communication of ideas, information and queries from Middle level
Managers.

Contribution to the Socio-Cultural values of the environment.

PURPOSES OF PERFORMANCE APPRAISAL SYSTEM:

Effective appraisal system contains two basic systems, an evaluation system and a
feedback system. The aim of evaluation system is to identify the performance gap and the aim of
feedback system is to inform the employee about the quality of his order of his performance.

Purpose of performance appraisal from employees view:

Tell me what you want me to do.

Tell me how well I have done it.

Help me improve my performance.

27

Reward me for doing well.

Purpose of Performance Appraisal from Organizational Point Of View:

Most important purpose for having the system of performance appraisal in an
organization is to establish and uphold the principle of accountability.
Performance Appraisal system aims at attaining various other purposes.

To create and maintain a satisfactory level of performance.

To contribute to the employee growth and development through training,

self and management development programs.

To help the superiors to have a proper understanding about their subordinates.

To guide the job changes with the help to continuous ranking.

To facilitate fair and equitable compensation based on performance.

To facilitate for testing and validity selection test, interview techniques through
comparing their scores with performance appraisal ranks.

To provide information for making decisions regarding lay off, retrenchment etc.

To ensure organizational effectiveness through correcting employee for standard and

improved performance, and suggesting the change in employee behavior.

TYPES OF APPRAISAL
1.

Self-Appraisal

2.

Upward appraisal

28

3.

Peer appraisal

4.

Towards 360 degree appraisal

1) Self-Appraisal:
If individuals understand the objectives they are expected to achieve and the standard by which
they are to be evaluated, they are to a great extent, in the best position to appraise their own
performance. Also, since employee development means, self-development, employees who
appraise their own performance may become highly motivated. Exhibit indicates the selfappraisal from of executives working in the sample organization i.e., india infoline. Selfappraisal is a continuous process. The following may be considered as purposes of self-appraisal

To provide an opportunity to the employees to recapitulate:

The various activities he has undertaken in relation to different functions associated with
his role

His achievements and failures with regard to task and targets thereof.

The capabilities he demonstrated and capabilities he is lacking in carrying out these

activities and various managerial and behavioral dimensions he demonstrated over the
year.

To identify his own development needs and plan for his progress in the organization
identifying the support hr requires from his reporting officer and others in the
organization.

To communicate to his reporting officer his contributions, accomplishments and

reflections to enable him to view his performance in the right perspective and assess more

29

objectively. This is necessary preparation for performance review discussions and

performance improvement plans.

To initiate an organization wide process of annual review and reflection to strengthen self
initiated developments for managerial effectiveness.

2) Upward appraisal:
Those who work for a supervisor or manager have a wise perspective of that person and
of some aspects of that persons work performance and contribution to the organization. So some
are showing interest in sub-ordinate assessment as a part of appraisal.
The main advantage of upwards appraisal is that a number of view points are introduced.
Managers are likely to take the feedback they receive from their staff and are likely to make
changes based on it.

3) Peer Appraisal:
The major strengths of peer review include:

Introducing a perspective different from that of line managers

Obtaining the views of the users of a persons contribution and performance if they
happen to be peers.

Obtaining a number of independent judgments.

Towards 360 appraisal:

Probably the most significant development likely to influence the nature of performance
appraisal in the future is the shift away from conventional appraisal under taken typically by the
line managers towards the concept of 360 appraisal. The concept builds on multi appraisal and
refers to a situation where appraisal data is collected all round an employee, from his/her
30

manager, subordinates, peers and customers. A number of factors are encouraging organizations
to introduce or to seriously consider the introduction of 360 appraisal. These include:

Flatter, less hierarchical more flexible, team based organization structures.

Awareness of the aloe of contributions from other sources in keeping with trends in
human resource management, emphasizing the importance of participation and
involvement.

The advantage of a range of perspective given in the increasing complex roles to many
people in the organization.

While 360 appraisals may indicate the future direction of performance appraisal, a
number of issues need to be addressed. These include:

Ensuring that participation is voluntary, unwilling rates are unlikely to provide accurate or
useful feedback.

Deciding whether feedback providers would be identified or remain anonymous

anonymity prevents relation, but encourage bias.

Deciding who should see the feedback and whether the names of those

providing

feedback should be shared.

Assessing whether score should be reported separately or pooled.

This will impact on the quality of the feedback and on whether the person being appraised
is likely to be denied.

APPRAISAL PROCESS "Many organizations make every effort to approximate the ideal
process resulting in first rate appraisal systems"
Appraisal process consists the following steps.
31

A) Objectives of Performance Appraisal

B) Establish job expectation
C) Design an appraisal programme
D) Performance interview
E) Use Appraisal data for appropriate purposes

A) Objectives of Performance appraisal:

Organizations often use acronym SMART to help set effective objectives:
S Specific
M Measurable
A Achievable
R Realistic
T Time bound
Organizations undertake Performance Appraisal to meet certain objectives. Main
objectives of Performance Appraisal are:

1) Salary increase: Performance Appraisal plays a significant role in making

about salary increase.

decision

Normally salary increase of an employee depends on how he is

performing his job.

2) Promotion: Performance Appraisal plays a significant role where promotion is based on

merit. Most of the organizations often use a combination of merit and seniority for the purpose
of promotion.

32

3) Training and Development: Performance Appraisal tries to identify the strengths and
weaknesses of an employee on his present job. This information can be used for devising
training and development programs appropriate for overcoming weaknesses of the employees.

4) Feedback: Performance Appraisal provides feedback to employees about their

performance. This works in two ways: First, the person gets feedback about his performance and
he may try to overcome his deficiencies, which will lead to better performance. Second, when
the person gets feedback about his performance, he can relate his work to the organizational
objectives.

5) Pressure of Employees: Performance Appraisal works as control devise pressurizing the

employees for better performance. If employees are conscious that they are being appraised in
respect of certain factors and their future largely depends on such appraisal, they tend to have
positive and acceptable behavior in this respect. Thus appraisal works as a control device.

B) Establish job expectations:

This includes informing the employee what is expected from him in the job. A
discussion is held with the superior to review the major duties contain in the job description.
Individuals should not be expected to begin the job until they understand what is expected of
them.

C) Design the appraisal programmes:

Designing an appraisal programme posses several questions, which needs answers
they are formal and informal appraisal

Formal:
33

Performance appraisal occurs usually annually on a formalized basis and involves

appraise and appraiser in finding answers to performances based questions.

Informal:
It is a continuous process of feeding back information to the

subordinates about how

they are doing their work in the organization. Performance Appraisal has been used for basically
two purposes.

Remedial.

Maintenance & Development.

A Performance Appraisal needs to cover all these purposes with the same focus.
1) Whose performance is to be assessed?
2) Who are raters?
3) What problems are encountered?
4) What should be evaluated?
5) Whose performance should be rated?

1) Whose performance is to be assessed?

Employees performance is to be assessed. In this step the raters will decide whether to
have individual performance appraisal or to have team/group performance appraisal or
organizational performance appraisal.
34

Individual performance appraisal is to identify the training needs of employees.

Team/group performance is to pay merit/performance incentives.

Organizational performance is to identify the overall performance of the organization

2) Who are raters?

Raters can be immediate supervisors, specialists from the human Resource
Department subordinates, peers, committees, clients, self-appraisals or a combination of through
performance evaluation. It may be recollected that the most significant rewards employees offer
to employees are money to purchase goods and services required not only for current and future
survival, but also for the luxuries modern life has to offer the opportunity to use learned skills
and talents in a productive manner that the individual and his managers and co-workers
recognize as a valuable opportunities to interact with other people in a favorable working
environment opportunity to perform work assignments within an environment that not only
protects ,but promotes physiological, emotional and psychological health.

3) What problems are encounter

Appraisal of personnel, both performance and potential, is used by every organization
either formally or informally. However this is full of shortcomings and limitations. There are
certain barriers that work against effective Appraisal system. The barriers to effective appraisal
system may be grouped into three categories:

1) Faulty assumptions,
2) Psychological blocks
3) Technical pitfalls
4) What should be evaluated?
35

Quality: The degree to which the process or result carrying out an activity fulfilling the activities
intended purpose.
Quantity: The amount produced and which is expressed in monetary terms, number of units and
number of completed activity cycles.
Timeliness: The degree to which an activity is completed or a result is produced in the given
period of time.
Cost effectiveness: The degree to which the use of organizations resources is maximized in the
sense of getting the highest gain or reducing loss.
Need for supervision: The degree to which a job functions without either having supervisory
assistance or intervention.
Interpersonal input: The degree to which a performer promotes feeling of self esteem, good
will and co-operation among co-workers and subordinates.

5) Whose performance should be rated?

The rate may be defined as the individual workgroup division, or organization. It is also possible
to define the rate at multiple levels, for example under some conditions, it may be desirable to
appraise performance both at workgroup level for merit pay increases and at the individual level
to assess training needs.

Components of appraisal evaluation:

A performance evaluation may be conducted in an organization due to many reasons such as:

Counseling

36

Promotion

Research

Salary

Administration or

a combination of all the above

So it is very necessary to begin by stating very clearly the objectives of the evaluation
program. Having done this, the personnel evaluation system should address the questions, who,
what, where, how of performance appraisal.

Evaluation process of performance appraisal:

ESTABLISH PERFORMANCE STANDARDS
|COMMUNICATE PERFORMANCE EXPECTATIONS TO EMPLOYEES
|MEASURE ACTUAL PERFORMANCE
COMPARE ACTUAL PERFORMANCE WITH STANDARDS

IF NECESSARY, INITIATE CORRECTIVE ACTIONS

1. Soltz observes that the process of performance appraisal follows set of pattern viz. man's
performance is periodically appraised by his superiors. Questions are raised- is his potential the
greatest as a Manager or as a staff specialist? What are his strengths and weaknesses? Where can
he make his great contribution? Next, some times in consultation with the man himself, tentative
decisions are made on what might be one to advance his development.
37

2. The process of performance appraisal follows a set of pattern as, broadly speaking the process
begins with establishment of "performance standards. Next step is to communicate their
standards to the employees, for the employee left to themselves, would find it difficult to guess
what is expected from them. To make communication effective feedback is necessary from the
subordinate to the Manager. Satisfactory feedback ensures that the information communicated by
the Manager has been released and understood in the way it was intended.
3. The measurement of performance, to determine what actual performance, it is necessary to
acquire information about it.
4. The comparison of actual performance with standards, the employee is appraisal and judged of
his potential for growth advancement.
5. The next stage is, the results are discussed periodically with the employees where good points,
weak points and difficulties are indicated and discussed so that performance is improved.
6. The last step is the initiation of corrective action where necessary immediate corrective action
can be of two types.
One is immediate and dealing predominantly with symptoms.
Another one is basic deals with causes.

PERFORMANCE APPRAISAL
The appraisal of employees in an employment has been labeled and described by expects over
the years in different ways. Common descriptions include performance appraisal, merit rating,
personnel preview, progress report, behavioral assessment, employee evaluation & service rating.

38

Definition
According to Beach Performance Appraisal is the systematic evaluation of the individual with
regard to his job her performance on the job and his potential for development.
According to Andrew Sikula, employee appraisal or performance appraisal is a systematic
evaluation of workers performance and potential for development. It is the process of estimating
or judging the value excellence, qualities or status of some object person or things. Performance
appraisal is a process of gathering analyzing and disseminating information about the
performance of employees.
Thus, performance appraisal is a systematic evaluation of personnel by their superiors or
others who are familiar with their work performance. Such appraisals usually involve the use of
forms and procedures that have been developed for the purpose.
OBJECTIVES OF PERFORMANCE APPRAISAL
Organizations undertake performance appraisal to meet certain objectives which are in the
form of salary increase, promotion, identifying training and development needs, providing
feedback to employees and putting pressures on employees for better performance.
Salary Increase - Normally Salary increase of an employee depends on how he is performing
his job for his performance there is continuous evaluation either formally or informally. In small
organization generally informal performance appraisal and in large organization formal
performance appraisal has been undertaken.
Promotion Performance appraisal plays a significant role where promotion is based on merit.
Most of the organizations often use a combination of merit and seniority for promotion.
Performance appraisal helps in deciding whether one can be promoted to the next higher position
and what additional training will be necessary for him.
Training and Development Performance appraisal tries to identify the strengths and
weaknesses of an employee on his present job. Training and development programmes can be
used for overcoming weaknesses of the employees.

39

Feedback Performance appraisal provides feed back to employees about their performance.
It tells where they stand. A person works better when he knows how he is working, how his
efforts are contributing to the achievement of organizational objectives.
Pressures on employees Performance appraisal puts a sort of pressure on employees for better
performance.

METHODS OF PERFORMANCE APPRAISAL

Traditional Methods

Ranking Method
Paired Comparison

Grading

Forced Distribution Method

Force Choice Method

Graphic Scale Method
Essay Method.
Field Review Method.

TRADITIONAL METHODS OF PERFORMANCE APPRAISAL

Ranking Method:Ranking is the oldest and simplest method of appraisal in which a person is ranked against others
on the basis of certain traits and characteristics. In the ranking method, various persons are given
ranks on the basis of their traits. This is a very simple method when the number of persons to be
ranked is small because ranking has to be given on the basis of traits, which are not easily
determinable.

Paired Comparison:Paired comparison method is a slight variation of ranking system designed to increase its value
for use in the large groups. In this method, each person compared with other persons taking only
40

one at a time. This method provides better comparison of persons. However, this increases the
work because of large number of comparisons. This can be calculated by a formula N (N-1)/2
where N is the total number of persons to be compared.
Grading:In this method, certain categories of abilities or performances are defined well in the advance and
persons are put in particular category depending on their traits and characteristics. Such
categories may be definitional like outstanding, good, average, poor, very poor, or may be in
terms of letters like A, B, C, D, etc. with A indicating the best and D indicating the worst.
Forced Distribution Method:In this method the appraiser is forced to appraise the appraises according to the pattern of a
normal curve. The basic assumption in this method is that employees performance level
conforms to a normal statistical distribution. This method is useful to rate job performance and
promo ability.
Forced Choice Method:The Forced-choice rating method contains a series of group of statements and the rater
checks how effectively the statement describes each individual being evaluated. There may be
some variations in the method and statements used, but the most common method of forced
choice contains two statements, both of which may be positive or negative.
o

The employee is hard working.

The employee gives clear instructions to his subordinates.

Both these statements are positive but the rater is asked to rate only one, which is more
descriptive of his subordinates behavior. This is done to avoid subjectivity in rating.

Graphic Scale Method:-

41

Graphic Scale also known as linear rating scale is the most commonly used method of
performance appraisal. In this method, a printed appraisal form is used for each appraisee; the
form contains various employee characteristics and his job performance. Various characteristics
include initiative, leadership, dependability, cooperativeness, enthusiasm, creative ability,
analytical ability, decisiveness, emotional maturity, etc. depending on the level of the employee.
The rating is done on the basis of scale which is in continuum 5, 4, 3, 2 and 1 in that order can be
used to denote points for various degrees of excellent-poor, high-low, or good-bad, and so on.
Essay Method:Some companies use free essay method, or sometimes, combine this with other methods. In
essay method, the rater assesses the employees on certain parameters in his own words. Such
parameters may be as follows:

Work performance in terms of quality, quantity and costs;

Knowledge about the job;

Knowledge about organizational policies, procedures and rules;

Employees characteristics and behavior;

Employees strengths and weaknesses;

Overall suitability of the employee;

Employees potential and promotability, and

Training and development needs of the employee.

The essay method is useful in providing useful information about an employee on the basis of
which he can be appraised.
Field Review Method:In the field review method, an employee is not appraised by his direct superior but by another
person, usually from personnel department. The basic idea is that such a person may take more
objective view in appraisal, as he is not under pressure as the superior of the employee may be.
The rater, in this case, appraises the employee based on his records of output and other
quantitative information such as absenteeism, late coming, etc. The rater also conducts
interviews of the employee and his superior to ascertain qualitative aspects of job performance.
This method is more suitable for promotion purpose.
42

MODERN MEHTODS OF PERFORMANCE APPRAISAL

Assessment Centre Method:- Under this technique many evaluators join together to
judge employee performance in several situations with the use of a variety of criteria. It is used
mostly to help and select employee for the first level supervisory position Assessments are mode
to determine employee potential for purpose of promotion. The merit of this system is that it is a
better method for identifying managerial potential than any other method.

Appraisal by Management by Objective (MBO):- Concept

of Management

by Objective (MBO) has been offered by Peter Duckers under this technique, the subordinate
sets his short-term performance goals in consultation with the superior. Goals explicitly state the
actions, which the employee will follow. The subordinate appraises his own performance by
evaluating it vis--vis goals. The supervisor is not the evaluator, but directs the goal setting
process to ensure that it matches the objective of the organization.

TOOLS OF PERFORMANCE APPRAISAL

In recent years, the purposes of performance appraisals have greatly expanded. Today
performance appraisals are used by organizations not only for wage increase, transfers & layoffs
but also as a means of communication, motivation & development of employees in an
organization.
Management by Objectives: - Management by Objectives (MBO) is used in this report to
mean as an approach to appraising performance by results. This approach tends to emphasis a
participative but joint determination of objective followed by a participative but joint evaluation
of success in periodic appraisal interviews.

43

Career Progression: - This phase is used here to mean the upward movement in the career path
through a planned Promotion Scheme
Job Rotation: - It implies the shifting of an employee from one job to another so that monotony
and boredom are reduced and at the same time there is an increase in the skill and knowledge of
the employee about related job.
Job Enrichment: - The term Job enrichment is used in this report to mean a deliberate
upgrading of responsibility, scope and challenge of the job as a non-financial motivation device.
Motivation: - Motivation is taken to man as a willingness to expand energy to achieve a goal or
reward. It is a force that activates a dormant energy and acts in motion the action of the people .It
is the function that kindles a burning passion for action among the human beings of an
organization.
Promotion: - Performance appraisal has duality of objectives evaluation of an employee in
his/her present role & their development for doing the present job in better way as well as to
develop him for the higher order job. The performance of this higher order job depends on their
potential in the light of the requirements of the new job. Thus, to determine an employees
likelihood

to

succeed

in

the

new

job,

potential

appraisal

is

carried.

Communication:- Performance appraisal helps clear communication between the superiors and
their subordinates. Communication helps in giving feedback to managers on their performance
and thus providing satisfaction to the executive.

44

EXCUTIVE PERFORMANCE APPRAISAL SYSTEM

The Executive Performance Appraisal System will be used to assess the performance of
executives and to plan for their development.

APPRAISAL PROCESS

Self Appraisal

Performance Review and planning

Performance Assessment

Development plan

Evaluation and Final grading

SELF APPRAISAL
Tasks/targets indicating a few key performance Areas will be set for each appraisee by his
reporting Officer in consultation with the former , This will be communicated to the appraisee by
31st March of every year , before the of the assessment year. The self-appraisal form will be filled
up by the appraisee twice a year in the first week of October and then in the first week of April.
The appraisee will factually report on the following, in the Self Appraisal every six months:Tasks/targets fulfilled
Constraints faced
Facilitating resources
Suggestions for improvement
In addition, the appraisee will indicate the following while filling up the self appraisal at the end
of the assessment year.

The highlights of performance

Major strengths
Developmental needs

45

PERFORMANCE REVIEW AND PLANNING

After Self Appraisal, performance Review and planning will be held twice a year between the
appraise and the Reporting Officer in October and April.
During the PRP session, the Reporting Officer will ensure a conducive climate for discussion.
In the PRP session, the Reporting Officer and the appraise will discuss:
The extent of task/targets fulfilled.
Major strengths of the appraise

Developmental needs.
Suggestions for improvement of the individual and the team performance. In the PRP held in
October, the discussion will be based on completion of the tasks/ targets up to the mid year and
will incorporate all mid-course change in the tasks/targets for the remaining six months. In the
PRP held in April, the discussion will be based on fulfillment of tasks / targets of the assessment
year.
The outcomes of PRP discussion will be noted in the specific form and signed by both the
Reporting Officer and appraise.

46

CHAPTER IV
DATA ANALYSIS AND INTERPRETATION

The conclusions drawn from data analysis and interpretation are as follows:
1) How long have you been working on present job in India info line ltd.?
47

a) Less than 5 years

b) 5-10 years

c) 10-15 years

d) 15 & above

S.NO.

Accepted Level

No. of Respondents

% of Respondents

1
2
3
4

Less than 5 years

5-10 years
10-15 years
15 & above
Total

30
10
3
7
50

60
20
6
14
100

INTERPRETATION:

From the above graph we can conclude that 60% of the employees are working in the
organization are less than one year

2) Are you aware of Performance Appraisal in your organization?

a) YES

b) NO

48

S.NO.
1
2

Accepted Level
Yes
No
Total

No. of Respondents
45
5
50

% of Respondents
90
10
100

INTERPRETATION:

90% of employees working in India info line are aware of performance appraisal in
their organization i.e., 10%of employees are not aware.

3) Performance Appraisal results in improving?

a) Performance

b) Job content
49

c) Enrich your job

S.NO.
1
2
3
4

d) satisfy your self actualization

Accepted Level
Performance
Job content
Enrich your job
Satisfy self
actualization
Total

No. of Respondents
35
3
2
10

% of Respondents
70
6
4
20

50

100

INTERPRETATION:

From the above graph we can conclude that 70% of the employees have the opinion
that Performance Appraisal results in improving performance.

4) Does the appraisal system at India info line identify the training needs of employees?
a) YES

b) NO
50

S.NO.
1
2

Accepted Level
Yes
No
Total

No. of Respondents
45
5
50

% of Respondents
90
10
100

INTERPRETATION:
90% of employees working in India Info line have opinion that performance appraisal
system in their organization identifies the training needs of employees
i.e., 10% of employees do not have this opinion.

5) What are the parameters on which training needs of employee at India info line are
identified?
a) Analytical ability is tested

b) planning and organizing abilities

51

c) Willingness and ability to assume responsibility

S.NO.
1
2
3

Accepted Level
Analytical ability is tested
Planning and organizing
abilities
Willingness and ability to
assume responsibility
Total

No. of Respondents
8
10

% of Respondents
16
20

32

64

50

100

INTERPRETATION: From the above graph we can conclude that 64% of the employees
have the opinion that willingness and ability to assume responsibility are the parameters on
which training needs of employees are identified.

6) How far the suggestions of appraisal report are implemented?

a) Implemented
S.NO.

b) Not implemented
Accepted Level

No. of Respondents
52

% of
Respondents

1
2

Implemented
Not implemented
Total

40
10
50

80
20
100

INTERPRETATION:
80% of employees say that the suggestions of appraisal report are implemented in their
organization. Where as 20% employees are not agreeing this.

7) How do you feel the Performance Appraisal system at India info line Ltd?
a) Highly satisfied
c) Dissatisfied

b) Satisfied
d) highly dissatisfied
53

S.NO.
1
2
3
4

Accepted Level
Highly satisfied
Satisfied
Dissatisfied
Highly dissatisfied
Total

No. of Respondents
5
30
11
4
50

% of Respondents
10
60
22
8
100

INTERPRETTION:
From the above graph we can conclude that 60% of the employees are satisfied, 10% are
highly satisfied, 22% are dissatisfied and 8% are highly dissatisfied with the Performance
Appraisal in their organization.

8) Are the promotions, removals and punishments based on Performance Appraisal at

India info line Ltd?
a) YES

b) NO

c) Undecided

54

S.NO.

Accepted Level

No. of Respondents

% of Respondents

YES

43

86

NO

Undecided

10

Total

50

100

INTERPRETATION: 86 % of employees says that promotions, removals and

punishments are based on Performance Appraisal in their organization.4% of employees are not
agreed with this and 10% of employees are undecided.

9) Do you want any changes in Performance Appraisal system?

a) YES

S.NO.

b) NO

Accepted Level

No. of
Respondents
55

% of Respondents

Yes

30

60

No

20

40

Total

50

100

INTERPRETATION:
60% of employees working in India info line have opinion that performance appraisal
system in their organization should be changed and rest 40% employees do not desire any
change.

10) What is the frequency of conducting Appraisal at India info line ltd?
a) Every 2 years

b) Annually

c) Every 6 months

56

S.NO.
1
2
3

Accepted Level
Every 2 years
Annually
Every 6months
Total

No. of Respondents
0
10
40
50

% of Respondents
0
20
80
100

INTERPRETATION:
From the graph we conclude that the 80% of the respondents says that the frequency
of conducting Appraisal at India info line is for every 6 months.

11) Which is more helpful i.e.,?

a) Counseling before appraisal
S.NO.
1

Accepted Level
Counseling before
appraisal

b) Counseling after appraisal

No. of Respondents
45

57

% of Respondents
90

Counseling after
appraisal

10

Total

50

100

INTERPRETATION:
90% Most of the respondents strongly feel that counseling before Appraisal is more
helpful than the counseling after Appraisal.

12) Do you feel any inferiority complex during the process of Performance Appraisal?
a) YES

S.NO.

b) NO

Accepted Level

No. of Respondents
58

% of Respondents

Yes

10

20

No

40

80

Total

50

100

INTERPRETATION:
80 % of employees working in India info line say that they are not feeling any
inferiority complex during the process of Performance Appraisal and remaining 20% employees
says that they are feeling inferiority complex.

13) Does the appraisal system at India info line identify the training needs of employees?
a) YES

S.NO.

b) NO

Accepted Level

No. of Respondents
59

% of Respondents

Yes

47

94

No

Total

50

100

INTERPRETATION:
94% of employees working in India info line agreed that performance Appraisal
process increases the co-operation between Superiors and Sub-ordinates.i.e., 10% of employees
do not have this opinion.

14) Which of the following Appraisal do you prefer?

a) Superior

b) Subordinate

c) Colleague

d) Self

60

S.NO.

Accepted Level

No. of Respondents

% of Respondents

Superior

30

60

Subordinate

Colleague

16

Self

10

20

Total

50

100

INTERPRETATION:
From the above graph we can conclude that 60% of the employees prefer
Appraisal through superior, 4% employees prefer appraisal through

subordinate, 16% of

employees prefer appraisal through colleague and 20% of employees prefer self appraisal.

15) Are you getting any training and developmental programs after the appraisal system?
a) YES
S.NO.
1
2

b) NO
Accepted Level
Yes
No

No. of Respondents
35
15
61

% of Respondents
70
30

Total

50

100

INTERPRETATION:
70% of employees working in India info line say that they are getting training
and developmental programs after the performance appraisal system in their organization. i.e.,
30% of employees do not have this opinion.

16) Do you have the feedback of your Performance regularly by the company?
a) Always

b) Mostly

c) Sometimes

d) Never
62

S.NO.
1
2
3
4
5

INTERPRETATION:

Accepted Level
Always
Mostly
Sometimes
Never
Strongly disagree
Total

No. of Respondents
27
10
8
3
2
50

% of Respondents
54
20
16
6
4
100

From the above graph we can conclude that 54% of the

employees agreed that they have the feedback of their Performance always by the company.

17) Right work can give right result in performance appraisal process?
a) Strongly Agree
c) Neither Agree nor Disagree

b) Agree
d) Disagree
63

e) Strongly
S.NO.
1
2
3
4
5

Accepted Level
Strongly Agree
Agree
Neither Agree nor
Disagree
Disagree
Strongly
Total

No. of Respondents
24
13
2

% of Respondent
48
26
4

5
6
50

10
12
100

INTERPRETATION: 48% of employees of India info line strongly agreed that right
work can give right result in performance appraisal system.

18) Promotion decisions are based on suitability of the promotee rather than favoritism?
a) Strongly Agree

b) Agree

c) Neither Agree nor Disagree

d) Disagree
64

e) Strongly Disagree
S.NO.
1
2
3

Accepted Level
Strongly agree
Agree
Neither Agree nor
Disagree
Disagree
Strongly Disagree
Total

4
5

No. of Respondents
10
30
2

% of Respondents
20
60
4

5
3
50

10
6
100

INTERPRETATION:
From the above graph we can conclude that 70% of the employees agreed that promotion
decisions are based on suitability of the promotee rather than on favoritism.

19) Do you agree that feedback helps you to know about yourself?
a) YES

b) NO

65

S.NO.

Accepted Level

No. of Respondents

% of Respondents

Yes

40

80

No

10

20

Total

50

100

INTERPRETATION:
80% of employees working in India info line agreed that feedback helps
them to know about themselves.20% of employees are not agreed with this statement.

20) Does your Performance Appraisal evaluate Leadership qualities?

a) YES

b) NO
66

S.NO.
1
2

Accepted Level
Yes
No
Total

No. of Respondents
48
2
50

% of Respondents
96
4
100

INTERPRETATION: 96% of employees working in India info line have opinion that
their performance appraisal system evaluates Leadership qualities.

67

CHAPTER V
FINDINGS, SUGGESTIONS AND
CONCLUSION

FINDINGS

The majority of the people are aware of Performance Appraisal method in

their organization. But very few of them are still not aware.
68

By analyzing the response of all the employees we can say that

Performance

Appraisal evaluates job knowledge, skills required by the employees and even the
behavior of the employees.

The response of the employees shows that the evaluation of their Appraisal gives
importance to their Leadership Qualities and also the Relationship with the
colleagues. Therefore the employees have a strong bond between them.

It is inferred that the employees have agreed that their boss review their Performance
periodically and hence we can say that Performance Appraisal method is strictly
following by the company.

The employees feel that willingness and ability to assume responsibility are the
parameters on which training needs of employees are identified.

Most of the employees have agreed that they are getting adequate training and
developmental programmes after the appraisal system.

SUGGESTIONS

69

1. Personal feelings and emotions should not influence while grading in appraisal system.
Recommendations or suggestions made in the appraisal system from need to be
implemented.

2. The system should be more scientific, to reflect employee attitude towards work and ability
to complete job. The performance appraisal must be realistic and should lead to career
growth, which is missing in public sector undertakings.

3. The appraisal system should be modified every year and to be carried out frequently say
about quarterly. The appraisal system should be improved by adding proper values to each
and every parameter so as to increase the effectiveness.

4. 360 degree appraisal is a powerful developmental method and quite different traditional
manager-subordinate appraisal. This appraisal involves the appraisee receiving feedback
from people whose views are considered helpful and relevant.

5. By using the appraisal system a person should be given a proper job assignment depending
upon his qualification, experience and also give appraisee a chance to choose his job interest
and also self appraisal.

6. Promotions and incentives should be given on the basis of performance rather than on the
basis of seniority. Employees must be aware of all the standards used for measuring
performance both in quality and quantity aspects.

70

7. Performance appraisal system should be developed in such a way that it should identify
interest levels and developmental needs of the employees.

CONCLUSION
As per the reports the current Appraisal system is motivating employees it is helpful in
achieving objectives of the organization. In this organization all the employees are aware of
71

the goals and standards of the organizational work; they expressed their satisfaction towards
the present Appraisal system.

The employees feel that the Appraisal system is helping them to know their strengths and
weaknesses and it is creating a competitive environment at work place. This Appraisal
system is helpful in improving the efforts of the employees and it is beneficial. Not only for
company but also for individual employees as an organization.

72

ANNEXURE

QUESTIONNAIRE
Dear sir/Madam,

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I am an M.B.A student. As a part of my course i have taken up

A STUDY ON

PERFORMANCE APPAISAL SYSTEM IN INDIA INFO LINE LTD Would be grateful if you
would kindly spare sometime to fill up this questionnaire.
This information is used purely for academic purpose and will be kept confidential.
Thanking you,

Yours sincerely
EMPLOYEE PROFILE:NAME

GENDER

QUALIFICATIONS

GRADEDESIGNATION

EXPERIENCE

(AT INDIA INFOLINE)

QUESTIONNAIRE
1. How long have you been working on present job in India info line Ltd?
a) Less than 5 years

b) 5-10 years

c) 10-15 years

d) 15 & above

2. Are you aware of performance Appraisal in your Organization?

a) Yes

b) No

3. Performance appraisal results in improving?

a) Performance

b) Job content

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c) Enrich your job

d) Satisfy your self actualization

4. Does the appraisal system at India info line identify the training needs of
employees?
a) Yes

b) No

5. What are the parameters on which training needs of employee at India info line Are Identified?
a) Analytical ability is tested

b) Planning and organizing abilities

c) Willingness and ability to assume responsibility.

6. How far the suggestions of appraisal report are implemented?
a) Implemented

b) Not implemented.

7. How do you feel the Performance Appraisal system at India info line Ltd?
a) Highly Satisfied

b) Satisfied

c) Dissatisfied

d) highly dissatisfied

8. Are the promotions, removals and punishments based on Performance Appraisal at

India info line Ltd?
a) Yes

b) No

c) Undecided
9. Do you want any changes in performance Appraisal process?
a) Yes

b) No

10. What is the frequency of conducting Appraisal at India info line?

a) Every 2 years

b) annually

c) Every 6 months

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11. Which is more helpful? i.e..,

a) Counseling before appraisal
12.

Do

you

feel

any

inferiority

b) counseling after appraisal

complex

during

the

process

of

Performance

Appraisal?
a) Yes

b) No

13. Performance Appraisal process increases the co-operation between Superiors and
Sub-ordinates
a) Yes

b) No

14. Which of the following Appraisal do you prefer?

a) Superior

b) subordinate

c) Colleague

d) self

15. Are you getting any training and developmental programmes after
the appraisal system?
a) Yes

b) No

16. Do you have the feed back of your performance regularly by the
Company?
a) Always

b) mostly

c) some times

d) never

e) Strongly disagree

17. Right work can give right result in performance appraisal process?
a) Strongly Agree

b) Agree

c) Neither Agree nor Disagree

d) Disagree

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e) Strongly
18. Promotion decisions are based on a suitability of the promote rather
than on favoritism?
a) Strongly Agree

b) Agree

c) Neither Agree nor Disagree

d) Disagree

e) Strongly Disagree
19. Do you agree that feed back helps you to know about your self?
a) Yes

b) No

20. Does your performance Appraisal evaluate Leadership Qualities?

a) Yes

b) No

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BIBLIOGRAPHY

BIBLOGRAPHY

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1.P.Subbarao, 2nd editon.HPH Pp207, 208,209,212 Essentials of human resource management

and industrial relations,
2 Prem chanda.

WEBSITES
www.hrd.com
www.micronetgroup.com
www.performance appraisal.com
www.hrmcomponents.ac.in

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