Professional Documents
Culture Documents
RESEARCH REPORT ON
Employee Perception towards Performance Appraisal System in Service Industry in Delhi NCR region
In partial fulfillment of the requirements of Research Applications in Business course of PGDM Programme
SUBMITTED TO:
Prof.Lata Singh
SUBMITTED BY:
Dipika Lakra, 23 Reema Kumari, 47
Table of Content
1. Introduction ... Performance Appraisal. Effective Appraisal Programme.. Performance Appraisals important in current scenario... 2. Objective of the study.... Research Methodology. Research Design. Sampling Plan.. Sources of Data.. Hypothesis Data Analysis.. 3. PAS- Its various Tools Applicable Objective of Performance Appraisal.. Tools & technique of PA. Advantages of PA. 4. Service Industry... Service Sector: An overview.... Service Sector in India.. 5. Literature Review... 5.1 PAS- Its Importance. 5.2 PAS- The Currents Tools Applicable.
5.3 PAS- What other Researchers Says 5.5 PAS- what Employees says. 6. Data analysis. 6.1 Interpretation.. 6.2 Hypothesis. 6.6. Sample profile: tool table 6.7. Sample profile: Awareness of PA process.. 6.8. Sample profile : PA process.. 6.9. Sample profile: Satisfaction level Table. Hypothesis Testing Results 7.Findings and Suggestions... 8. Conclusions... Reference and Bibliography.. Questionnaire.
1.Introduction
Introduction
The report embarks on the introduction about the company in Delhi NCR region, their profile of the company, HR departments, its products and services, business and quality policies. In todays competitive scenario, when achiever more with less and in minimum time is mantra to success, every organization is using Performance Appraisal for their employees. The project is undertaken to study the perception of employees towards Performance Appraisal in their respective organization, in Delhi NCR region.
Performance appraisals are one of the most frequently criticized talent management practices. The criticisms range from their being an enormous waste of time to their having a destructive impact on
the relationship between managers and their subordinates. A performance appraisal (PA), performance review, performance evaluation, (career) development discussion, or employee appraisal is a method by which the job performance of an employee is evaluated. Performance appraisals are a part of career development and consist of regular reviews of employee performance within organizations. Human resource management (HRM) conducts performance management. It consist of the activities and/or processes embraced by an organization in anticipation of improving employee performance, and therefore, organizational performance. It has been studied quite extensively over the last few decades (Landy and Farr, 1980), yet scholars continue to argue about the validity and merits of these systems. Due to the paradox facets of performance appraisal system, major issues in related to an intricate dynamic relationship between employee satisfaction and perception of fairness are raised (Allen and Meyer, 1990). Traditionally, the focus of performance measurement has been on financial measures
only. By the late 1980s, studies had shown that historic financial data is not enough to satisfy the PM in the new economy because of the increasing complexity of organizations and the markets in which companies compete (Kennerley, Neely 2002). Performance appraisal is an ongoing process that involves both managers and the employees in: (1) identifying the strategic vision, goals and objectives of the organization; (2) identifying and describing essential job functions and relating them to the mission and goals of the organization; (3) developing realistic and appropriate target standards of performance; (4) implementing ways of measuring actual, compared with target performance; (5) communicating constructive performance evaluations; and
6 (6) planning development opportunities to sustain, improve or build on employee work performance (Neely et al., 1996).
Performance appraisal is among the most important human resource (HR) practices and it is one of the more heavily researched topics (Fletcher, 2002). As organizations get bigger, a formal performance appraisal systems aids administrative decision such as pay increases and promotion, redundancy or termination, development needs, and for the employees the process may assits them in career choices and may increases their commitment and satisfaction due to improvements in organizations communications (Wiese & Buckley, 1998). Effective appraisal programs are fair, credible, and transparent by providing for the following: Alignment. Employee performance plans align with and are designed to support organizational goals. Results-focus. Employee performance plans hold employees accountable for achieving results appropriate to their level of responsibility. Credible Measures. Employee performance plans provide for balance, so that in addition to measuring expected results, the performance plans include appropriate measures, such as quality, quantity, timeliness, and/or cost-effectiveness, indicators of competencies, and customer perspective. In addition, for managers and supervisors, performance plans should also incorporate employee perspective. Distinctions in levels of performance. The appraisal program provides for multiple levels to appraise performance and rating officials use those levels to clearly describe distinctive levels of performance and appropriately rate employee performance. Consequences. The result of appraisal is used for recognizing top performers and addressing poor performance. Employee Involvement. Employees are involved in the design of the appraisal program and in the development of their performance plans. Feedback and Dialogue. The appraisal program establishes a performance feedback process that ensures a dialogue between supervisors, managers, and employees throughout the year. Training. The appraisal program requires that executives, managers, supervisors, and employees receive adequate training and retraining on the performance appraisal program. In addition, supervisors must have the competencies necessary for managing performance. Organizational Assessment and Guidance. The appraisal program requires that appropriate organizational performance assessments are made and communicated to rating officials, and that guidance is provided by the head of the agency or designee on
how to incorporate organizational performance into the assessment process, especially regarding the appraisal of managerial and supervisory employees. Oversight and Accountability. The head of the agency or designee has oversight of the results of appraisals and awards, ensures that the program operates effectively and efficiently, and ensures that appraisals and awards are based on performance. In addition, managers and supervisors are held accountable for the performance management of their subordinates.
Whether you have 10 employees or 10,000, using a performance appraisal system puts your employees on the track to increased productivity and keeps them there. Important is to learn how to get the most out of a performance appraisal system to direct your employees efforts to be focused on what is necessary to make your company successful. The performance management process provides an opportunity for the employees and performance manager to discuss development goals and jointly create a plan for achieving those goals. Development plans should contribute to organizational goals and the professional growth of the employees (Carney, 1999). Managing employees performance is an integral part of the work that all managers and rating officials perform throughout the year. It is as important as managing financial and other resources of the organisation because employees performance has a positive or negative impact on the growth of the organisation as well as effect the proper utilisation of other resources of the organisation. So to know about the performance of the employees a better way is to adopt performance appraisal system i.e. widely accepted in organisations now a days for launching or applying performance appraisal in the organisation the first step is to identify organisation goals and explains them to the employees along with individual goal, the time period by which goals must be achieved and ways or methods by which their performance is going to be evaluated. It will bring transparency between employer and employee regarding the usage of performance appraisal system in the organisation. Employees must be ensured that good performance will bring some reward for them and in other cases, ways will be explained to improve the performance to achieve the desired level. Traditionally, the focus of performance measurement has been on financial measures only. By the late 1980s, studies had shown that historic financial data is not enough to satisfy the PM in the new economy because of the increasing complexity of organizations and the markets in which companies compete (Kennerley, Neely 2002). It may be concluded that performance appraisal is a window through which employer can look deeply in to the professional life of their employees and may help to improve their performance to achieve the desired standard. And through it will help the employees to know how they are performing because their performance is going to be evaluated against a standard by a particular method known to them in advance.
2.Objectives
Objectives
To find out various Performance Appraisal tools applicable in sampled organization. To find out employees awareness about Performance Appraisal system in their organization. To find out employees satisfaction from the implementation of Performance Appraisal procedure in their organization.
RESEARCH METHODOLOGY
5. 1. RESEARCH DESIGN A research design is the determination and statement of the general research approach or strategy adopted for the particular project. It is the heart of the planning. If the design adheres to the research objectives, it will ensure that the client need will be served. Research design is a plan structured and strategies of investigation. It is the arrangement of condition and analysis of data in a manner to combine relevance to the research purpose with economy in procedure. In order to achieve the objective it was necessary to talk to the employees to draw the conclusions regarding the objective. For collecting the relevant information, a questionnaire was designed. The questionnaire was designed in such a manner as achieve the objective of the research. The main aim of this survey is to know the employee satisfaction and perceptions towards Performance Appraisal System and find out the factors for employee satisfaction. Therefore, descriptive research is being adopted to find out the employee satisfaction and perception of employees. Descriptive research: Descriptive research is also called Statistical Research. The main goal of this type of research is to describe the data and characteristics about what is being studied. The idea behind this type of research is to study frequencies, averages, and other statistical calculations. Although this research is highly accurate, it does not gather the causes behind a situation. Descriptive research is mainly done when a researcher wants to gain a better understanding of a topic for example, a frozen ready meals company learns that there is a growing demand for fresh ready meals but does not know much about the area of fresh food and so has to carry out research in order to gain a better understanding. It is quantitative and uses surveys and panels and also the use of probability sampling. Descriptive research is the exploration of the existing certain phenomena. The details of the facts wont be known. The existing phenomena facts are not known to the persons. Primary data: The method of data collection was done by the way of survey. Primary data has been collected through field survey with the help of structured questionnaires. We took the personal interview of the employees who were coming out of the offices during lunch breaks. We also get the questionnaire filled by them. Secondary data: Secondary data is the data which has already been collected by someone else for the same, similar or for different purpose. We have collected the secondary data from the past reports, articles, journals , websites etc. We have used secondary data for the purpose of preparing questionnaires, industry & company profiles. 5. 2. SAMPLE DESCRIPTION
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Sample size & Simple unit: 100 respondents from NCR region who work at Service sector in NCR, Delhi. We have taken 100 respondents sample to know the approximate figures of employees and employees perception and satisfaction towards Performance Appraisal System, tools and awareness about the Performance Appraisal System in their organization. Sample selection procedure: We used multistage sample selection technique. At first stage we used random sampling technique to select Service Sectors in NCR, Delhi because it was not possible to select all the Organisations in the city due to shortage of time. At second stage we used convenience sampling technique to take responses from the respondent because respondents are not easily available and it was not possible to sort out respondent on the basis of their coming out their offices. It took 3 weeks time to collect responses from the respondents. Target respondent: The target respondents were both the male and female employees. The age group be in between 20-35 &above. Respondents were taken from outside the offices, NCR, Delhi 5. 3. DATA COLLECTION METHODS AND TECHNIQUES To collect the responses and data from the respondents we choose questionnaire. We prepared a structured questionnaire for the collection of data from various respondents who were coming out their offices and we took the responses from them. 5. 4. DATA INTERPRETATION AND ANALYSIS TOOLS AND TECHNIQUES We are using SPSS which is a latest tool for easily analyzing the data. We entered data in Excel sheet and prepared chart and graphs on the basis of the data. To calculate the Hypothesis we used the test.
Hypothesis
Hypothesis is a proposition about the nature of the world that makes predictions about the results of an experiment. For a hypothesis to be well formed there must be some experiment whose outcome could prove it to be false. In this research report we are finding some of the outcomes on the basis of prediction and assumptions. For this purpose we formed some hypothesis:
H1: There is significant difference in the employee awareness towards tools of PA applicable in their organization. H2: There is significant difference in the employee awareness towards the procedure of the performance appraisal methods. H3: There is significant difference in the employee satisfaction levels from the implementation of performance appraisal procedure.
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12 Performance Appraisal System The performance appraisal process has become the heart of the human resource management system in the organisations. Performance appraisal defines and measures the performance of the employees and the organisation as a whole. It is a tool for accessing the performance of the organisation. According to Flippo, a prominent personality in the field of Human resources, "performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future. It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals.
Objectives of Performance Appraisal Performance Appraisal can be done with following objectives in mind: 1. To maintain records in order to determine compensation packages, wage structure, salaries raises, etc. 2. To identify the strengths and weaknesses of employees to place right men on right job. 3. To maintain and assess the potential present in a person for further growth and development. 4. To provide a feedback to employees regarding their performance and related status. 5. To provide a feedback to employees regarding their performance and related status. 6. It serves as a basis for influencing working habits of the employees. 7. To review and retain the promotional and other training programmes.
Advantages of Performance Appraisal It is said that performance appraisal is an investment for the company which can be justified by following advantages: 1. Promotion: Performance Appraisal helps the supervisors to chalk out the promotion programmes for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case. 2. Compensation: Performance Appraisal helps in chalking out compensation packages for employees. Merit rating is possible through performance appraisal. Performance Appraisal tries to give worth to a performance. Compensation packages which includes bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. The criteria should be merit rather than seniority. 3. Employees Development: The systematic procedure of performance appraisal helps the supervisors to frame training policies and programmes. It helps to analyse strengths and weaknesses of employees so that new jobs can be designed for efficient employees. It also helps in framing future development programmes.
13 4. Selection Validation: Performance Appraisal helps the supervisors to understand the validity and importance of the selection procedure. The supervisors come to know the validity and thereby the strengths and weaknesses of selection procedure. Future changes in selection methods can be made in this regard. 5. Communication: For an organization, effective communication between employees and employers is very important. Through performance appraisal, communication can be sought for in the following ways: a. Through performance appraisal, the employers can understand and accept skills of subordinates. b. The subordinates can also understand and create a trust and confidence in superiors. c. It also helps in maintaining cordial and congenial labour management relationship. d. It develops the spirit of work and boosts the morale of employees. All the above factors ensure effective communication. 6. Motivation: Performance appraisal serves as a motivation tool. Through evaluating performance of employees, a persons efficiency can be determined if the targets are achieved. This very well motivates a person for better job and helps him to improve his performance in the future. Following are the tools used by the organizations for Performance Appraisals of their employees: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Ranking Paired Comparison Forced Distribution Confidential Report Essay Evaluation Critical Incident Checklists Graphic Rating Scale BARS Forced Choice Method MBO Field Review Technique Performance Test
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5. Paired comparison analysis Paired comparison analysis is a good way of weighing up the relative importance of
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options. A range of plausible options is listed. Each option is compared against each of the other options. The results are tallied and the option with the highest score is the preferred option. 6. Graphic rating scales The Rating Scale is a form on which the manager simply checks off the employees level of performance. This is the oldest and most widely method used for performance appraisal. 7. Essay Evaluation This method asked managers / supervisors to describe strengths and weaknesses of an employees behavior. Essay evaluation is a non-quantitative technique This method usually use with the graphic rating scale method. 8. Behaviorally anchored rating scales This method used to describe a performance rating that focused on specific behaviors or sets as indicators of effective or ineffective performance. It is a combination of the rating scale and critical incident techniques of employee performance evaluation. 9. Performance ranking method Ranking is a performance appraisal method that is used to evaluate employee performance from best to worst. Manager will compare an employee to another employee, rather than comparing each one to a standard measurement. 10. Management By Objectives (MBO) MBO is a process in which managers / employees set objectives for the employee, periodically evaluate the performance, and reward according to the result. MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods)
11.360 degree feedback
It is also known as multi-rater feedback or multi-dimensional feedback or multi-source feedback. It is a very good means of improving an individuals effectiveness (as a leader and as a manager). It is a system by which an individual gets a comprehensive/collective feedback from his superiors, subordinates, peers/co-workers, customers and various other
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members with whom he interacts. The feedback form is in a questionnaire format, which contains questions that are significant to both individual as well as organization from performance aspect. It is filled by anonymous people. The number of people from whom feedback is taken can range from 6 - 20. The individuals own feedback is also taken, i.e., he self-rates himself and then his rating is compared with other individuals ratings. Self ratings compel the individual to sit down and think about his own strengths and weaknesses. There is a view that the content of appraisal discussions should be confidential to the individual and the appraiser. But increasing pressure to provide information to assess the contribution of people to organisational value makes it desirable that performance data be recorded and stored in such a way that it can be used to feel into indicators of human capital value
A good appraisal system is that:
Discuss the strengths and weakness of the appraisee. Feedback of the appraisee is encouraged. Explains the ways to improve the performance. A bad appraisal system is that: Focuses on omissions and failures only. No proper attention to what the appraisee says Leads to full disagreement between appraiser and appraisee and lost the trust of the employees. Results of performance appraisal may be beneficial for an organisation in a variety of ways like For promotion, separation and transfer decisions. Feedback to employees regarding how the organisation viewed the employee's performance. To evaluate the contribution made by the individual and entire department in achieving organisation goals. To decide about training and development programme. To know about the weakness of employees that must be removed.
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4. SERVICE INDUSTRY
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4.2. Service sector in India Service Sector in India today accounts for more than half of India's GDP. According to data for the financial year 2006-2007, the share of services contributes to 55.1 per cent of the GDP, where as industry, and agriculture in shares 26.4 per cent, and 18.5 per cent respectively. This shows the importance of service industry to the Indian economy and as service sector now accounts for more than half the GDP marks a watershed in the evolution of the Indian economy and takes it closer to the fundamentals of a developed economy. There was marked acceleration in the growth of services sector in the nineties. While the share of services in India's GDP increased by 21 per cent points in the 50 years between 1950 and 2000, nearly 40 per cent of that increase was concentrated in the nineties. While almost all service sectors participated in this boom, growth was fastest in communications, banking, hotels and restaurants, community services, trade and business services. One of the reasons for the sudden growth in the services sector in India in the nineties was the liberalization in the regulatory framework that gave rise to innovation and higher exports from the services sector. In the current economic scenario it looks that the boom in the services sector is here to stay as India is fast emerging as global services hub. Indian service industry covers a wide gamut of activities like trading, banking & finance, infotainment, real estate, transportation, security, management and technical consultancy among several others.
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The major sectors that combine together to constitute service industry in India are listed below.
and recreation
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5) Literature Review
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growth of the employees (Carney, 1999). Jurjen J.A. Kamphorst and Otto H. Swank derived a couple of results in his study of the role of performance appraisal in motivating his employees. First, he has shown that even though a performance appraisal is cheap-talk, it may contain information that is relevant for the employee. Second, for a wide range of parameters the managers tend to give positive appraisals. Third, on average, a positive appraisal motivates an employee more than a negative appraisal. Fourth, the effect of appraisals on an employees. Future performance depends on the employees perception of the ability of the manager to assess his performance. As organizations get bigger, a formal performance appraisal systems aids administrative decision such as pay increases and promotion, redundancy or termination, development needs, and for the employees the process may assits them in career choices and may increases their commitment and satisfaction due to improvements in organizations communications (Wiese & Buckley, 1998). Performance appraisal (PA) is one of the human resource management (HRM) tools used to evaluate the job performance of employees (Dessler, 2011; Mondy et al. 2002; and Tompkins, 1995). The ultimate goal of PA is to maintain better performance by fostering employees motivation, which would depend upon the situations in the workplace, such as reward system, rules and regulations. This is pertinent to Herzbergs two-factor theory, which constitutes two variants about motivation. According to Bateman and Snell (2011), the first one focuses on motivators such as the nature of the job, duties and responsibilities, and job satisfaction to determine motivation. The second one known as hygiene factors includes working circumstances, compensation, supervision and the policy of an organization. The theory suggests that these factors should adequately be administered in order to motivate employees, and to serve several HRM purposes such as promotion or termination. The results of the PA are measured based on a number of appraisal methods such as category scaling and comparative methods (Mathis and Jackson, 2006). The category scaling facilitates the measurement of performance of employees on a certain form by checking categorically grouped levels such as highest and lowest. The comparative appraisal methods entail the ranking and comparison of performance ratings of employees of a particular work unit.
5.2 Performance Appraisal System the current tools applicable. Most appraisal methods used throughout the world today are based, to some extent at least upon the following techniques: Graphic rating scales; behaviorally anchored rating scales (BARS), behavioural observation scales (BOS); mixed standard rating scales; and management by objectives (MBO). Most commentators agree that goal-based appraisal systems, in which an employees work performance is measured against specific goals, are the most satisfactory (Dorfman et al., 1986; Locke and Latham, 1984; Latham and Wexley, 1981). The following quote by John F. Welch, Jr., CEO, GE was taken from the book 360 DEGREE FEEDBACK (Edwards & Ewen, 1996, pg. 3).
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Any company thats going to make it in the 1990s and beyond has got to find a way to engage the mind of every single employee. If youre not thinking all the time about making every person more valuable, you dont have a chance. Whats the alternative? Wasted minds? Uninvolved people? A labor force thats angry or bored? That doesnt make sense. Employee engagement is a relatively new term in HR literature and really started to come to prominence from 2000 onwards. Melcrum Publishing (2005) found that from a global survey of over 1,000 communication and HR practitioners 74% began to formally focus on the issue between 2000 and 2004. The defining distinction is that employee engagement is a two-way interaction between the employee and the employer, whereas the earlier focus tended to view the issues from only the employees point of view. Definitions of engagement, or characteristics of an engaged workforce, focus on motivation, satisfaction, commitment, finding meaning at work, pride and advocacy of the organisation (in terms of advocating/recommending either the products or services of the organisation, or as a place to work). Additionally, having some connection to the organisations overall strategy and objectives and both wanting and being able to work to achieve them, are key elements of engagement.
Gain support of both human resources and top management; Use qualitative versus quantitative criteria; Allow for input when developing performance standards and criteria; Make sure the performance appraisal system is not dated; Ensure managers take ownership of the performance appraisal system; Attempt to eliminate internal boundary spanning by creating direct reporting relationships where possible; Utilize performance targeting (Halachmi, 1993) to appraise PMs; Be aware and act on environmental forces as they affect the organization.
According to Muezyk and Gahle (1987), an organization's success or failure may be determined by the ways in which performance is managed. The guidance indicated that performance appraisal was just as much about development (forward looking) as review of performance ( backward looking). Rose and Lawton (1999) noted how stressful it was at that time for managers to have to introduce new management practises, whilst
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continuing to deliver for customers, with little or no additional resources to facilitate implementation. Also Fletcher (2004) suggested that performance appraisal provide a platform for employees to look forward their tough goals and objectives, which leads them in successful completion of their job. The positive feedback receive from the mangers in appraisal interview will motivate employees in improving their performance likely. Martin and Jackson, (2000) appraisal is also a method of enhancing employee training and development as it provide information about the strength and weaknesses in performance, which create a debate how to improve the performance of employee. In the end it helps the employees to understand their overall contribution in achieving organization goals (Martin and Jackson, 2000). 5.4. Performance Appraisal System - what employee says? A competency based performance management system establishes skills and behaviors necessary for an employees success and future development. This system includes a set of core competencies required of all employees, with specific sets of skills attributed to certain roles. This system is transparent in its identification of performance criteria to be mastered in order to be considered for advancement. The core competencies reflect both the cultural and organizational goals (Martone, 2003). Outstanding efforts do not go unnoticed. Performance Management offers a variety of awards that show gratitude for a job well done, such as time off and bonuses. The prospect of a better than Fully Successful Performance Appraisal gives you the incentive to perform well and may open the door to career advancements in the future. Employee satisfaction towards performance appraisal has been the most frequently measured (Keeping and Levy, 2000) and it has been primarily conceptualized in three ways: (a) satisfaction with the performance appraisal interview, (b) satisfaction with the appraisal system, and (c) satisfaction with performance ratings. Keeping and Levy (2000) argued that it is necessary to address employees reactions toward their performance appraisal for many reasons, including (a) the notion that reactions represent a criterion of great interest to practitioners and (b) the fact that reactions have been theoretically linked to determinants of appraisal acceptance and success but have been relatively ignored in research. Behavioral based performance management systems require intense job analysis to identify specific behaviors that may be attributed to successful performance in a given role. This performance management system compares an employees behaviors with a description of possible behaviors (SHRM, 2004). Behaviorally based performance management systems clearly present to employees what behaviors should or should not continue. This system also recognizes and accommodates great job complexity (Latham, G, Almost, J., Mann, S. and Moore, C., 2005). Behaviors become the common reference points by which employees are appraised (SHRM, 2004). Better understanding of the perceptions of the fairness based on the concepts of procedural, distributive, informational and interpersonal justice of performance appraisal and related employee reactions to such systems should provide decision makers with more specific information needed to improve the effectiveness of the system in achieving organizational goals.
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In our research 100 respondents participated with different service industry. FMCG sector and Software sector comprises the most of the respondents ie.32 and 30 which is 32% and 30% of the total respondents.BPO sector and Academics constitutes 13% each and other sector 12% the total respondents of employees.
Figure 1: Industry
Industry
35% 30% 25% 20% 15% 10% 5% 0% FMCG Software Academics BPO Others 13% 13% 12% FMCG Software Academics BPO Others 32% 30%
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In our research there are 100 respondents participated in which most of the respondent ie 75 which is 75% of the total respondents are male and 25 which is 25% of the total respondents are females.
Figure 1: Industry
Gender
25% Male 75% Female
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According to the research, most of the 54 respondents which comprises the 54% of total respondents fall under the age group of 20-25years. It is more than half of the employees . 27 respondents which are 27% fall under the age group of 26-30 years. 13 respondents which are 13% of total respondents fall under the age group of 31-35 years. There are only 6 respondents which is 6% of total respondents fall under the age group of above 35 years. Figure 3: Age Group
Age Group
60% 50% 40% 30% 20% 10% 0% 54%
27% 13% 6% 20-25years 20-25years 26-30years 26-30years 31-35years 31-35years above 35years
above 35years
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Figure : Duration
Duration
70% 60% 50% 40% 30% 23% 20% 10% 0% 05-10years 10-15years 15-20years More than 20years 6% 05-10years 10-15years 15-20years More than 20years 66%
5%
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As per the responses, 49 respondents of the total i.e. 49% of the employees are partially aware of the tools those are used by their organization in the Performance Appraisal system. 40 respondents comprise the 40% of the employees who are fully aware of the tools used for their Performance Appraisal .8% are not aware of any such tools in their organization and 3% could not say anything about Performance Appraisal system in their organization.
Awareness of PA Tools
60% 50% 40% 30% 20% 10% 0% Fully aware Partially aware Not aware Can't say 8% 3% 49% 40% Fully aware Partially aware Not aware Can't say
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According to the respondents, Top level of employees use the tool Self assessment which comprises the 67% of the total respondents. Confidential Report, Critical Incident, Graphic Rating Scale comprise
44%, 43% and 42% of the respondents, according to them these tools are used in the Top level. Rest of the Top level tools for measurement comprise Check List, 180 Degree, Forced Choice, 360 Degree which are supported by relatively lesser number of employees i.e. 36%, 37%,27% and 27%. At the Middle level, Graphic Rating Scale, Check List and Essay Evaluation comprise more than 50% of the respondents, according to them these tools are generally used for middle level employees while all other tools mentioned in the table are also opted by 40% of overall employees. At lower level, Forced Choice, 180 Degree, Essay Evaluation comprise 13%, 13% and 12% of the respondents, according to them these tools are generally used for assessing performance of lower level of employees.
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12%
10%
12% 7%
Lower Level
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Table 7:Tools
Awareness of PA Process Fully aware Partially aware Not aware Can't say No. of Responses 46 47 5 2 100 Percentage (%) of Responses 46.0 47.0 5.0 2.0 100.0
47 responses comprise the 47% of the Total respondents who are partially aware of the process followed by their organization. Only 1% less i.e. 46% of the respondents are fully aware of the PA process .While 5% are not aware and 2% are could not say anything about their PA process.
Awareness of PA Process
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Fully aware Partially aware Not aware Can't say 5% 2% Fully aware Partially aware Not aware Can't say 46% 47%
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Table 8: PA Processes
PA Processes Organization KRA Convey in time Provide training Measure actual performance Expressing disagreement Yes 66% 58% 51% 48% 47% No 24% 26% 30% 22% 33% Sometimes 9% 14% 17% 23% 16% Can't say 1% 2% 2% 7% 4%
66% and 58% of the respondents say that there is KRA in their organization and those are been conveyed in time while 24% and 26% of respondents disagree with it. 51% agree that they are provided training in case required. 48% agree that it is useful in measuring actual performance and 47% says they feel free to convey their disagreement to their seniors while 33% of employees disagree with them. Figure 8: PA Processes
PA Processes
70% 60% 50% 40% 30% 30% 20% 10% 0% Organization KRA Convey in time Provide training Measure actual performance Expressing disagreement 9% 1% 2% 2% 24% 26% 14% 17% 7% 23% 22% 16% 4% 66% 58% 51% 48% 47% Yes No Sometimes Can't say
33%
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5% 5% 4% 4% 1% 14% 4%
The respondents have given different rates to the different tools, parameters set for appraisal of employees. 48%,44% and 39% of the respondents are relatively satisfied with the /communication of standards, fairness and transparency of the process.while there are less than 10% of the total respondents who are not satisfied with the procedure of the Performance Appraisal system in their organization.
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Satisfaction level
60% 48% 44% 40% Axis Title 30% 28% 19% 18% 37% 34% 30% 29% 26% 23% 20% 18%18% 17% 18% 11% 10% 6% 6% 6% 6% 5% 18% 14% 5% 19% 10% 18% 18% 12% 12% 4% 4% 1% 0% 22% 22% 17%17% Series1 Series2 Series3 Series4 4% Series5 18% 14% 14% 14% 13% 34% 32% 39% 36% 36% 32% 30%
50%
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tools which are applicable in your organization at different levels of administration. [Forced Choice 6. Please tick the Performance Appraisal tools which are applicable in your organization at different levels of administration. [360 Degree] 6. Please tick the Performance Appraisal tools which are applicable in your organization at different levels of administration. [180 Degree] 6. Please tick the Performance Appraisal tools which are applicable in your organization at different levels of administration. [Critical Incident] 6. Please tick the Performance Appraisal tools which are applicable in your organization at different levels of administration. [Essay Evaluation] 6. Please tick the Performance Appraisal tools which are applicable in your organization at different levels of administration. [Confidential Report] Between Groups Within Groups Total 36.376 36.887 92 96 .395 .511 4 .128 .323 .862 Between Groups Within Groups Total 39.078 40.958 91 95 .429 1.881 4 .470 1.095 .364 Between Groups Within Groups Total 40.809 41.656 91 95 .448 .847 4 .212 .472 .756 Between Groups Within Groups Total 39.595 42.351 89 93 .445 2.756 4 .689 1.549 .195 ] Between Groups Within Groups Total 34.389 36.105 90 94 .382 1.716 4 .429 1.123 .351 Within Groups Total 36.084 37.979 92 96 .392
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From the above table we found that F value is not significant at P<0.05 as the F value of self assessment is .031; graphic rating scale has 1.617; check list has .591; behaviorally anchored rating has 1.846; forced choice has 1.208; 360 degree has 1.123; 180 degree has 1.549; critical incident has .472; essay evaluation has 1.095; confidential report has .395. So here the alternative hypothesis would be rejected at 5 percent significant level. Hence, We can say that there is no significant difference in the employee awareness towards tools of PA applicable in their organization.
H2: There is a significant difference in the employee awareness towards the procedure of the performance appraisal methods.
Table : in the employee awareness towards the procedure of the performance appraisal methods.
ANOVA F 8. Please tick the correct option. [Does your organization establish certain standard (KRA) for employees to achieve?] 8. Please tick the correct option. [If established do they convey their employee about the said standard to achieve in set period of time?] 8. Please tick the correct option. [Do they provide training in case there is need to achieve the standard?] 8. Please tick the correct option. [Does it measure your actual performance?] 8. Please tick the correct option. [Do you feel free to express your appraiser your disagreement regarding the appraisal decisions?] Between Groups Within Groups Total Between Groups Within Groups Total 1.850 .126 1.562 .191 Between Groups Within Groups Total 1.171 .329 Between Groups Within Groups Total .643 .633 Between Groups Within Groups Total 1.406 Sig. .238
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From the above table we found that F value is not significant at P<0.05; as the F value of establishment of standard (KRA) for employees to achieve is 1.406; convey their employee about the said standard to achieve in set period of time is .643; provide training in case there is need to achieve the standard is 1.171; measurement of actual performance is 1.562; they feel free to express their appraiser about their disagreement regarding the appraisal decisions is 1.850. So here the alternative hypothesis would be rejected at 5 percent significant level. Hence, we can say that there is no significant difference in the employee awareness towards the procedure of the performance appraisal methods.
H3: There is a significant difference in the employee satisfaction levels from the implementation of performance appraisal procedure.
Table: in the employee satisfaction levels from the implementation of performance appraisal procedure.
ANOVA Sum of Squares 9. Please Rate the followings (1=least, 5=most), your satisfaction level from the applicable tools of performance appraisal system in your organization. [Establishment of Performance Standards] 9. Please Rate the followings (1=least, 5=most), your satisfaction level from the applicable tools of performance appraisal system in your organization. [Communication of Standards] 9. Please Rate the followings (1=least, Between Groups 10.521 4 2.630 1.952 .108 Between Groups Within Groups Total 116.190 99 102.159 95 1.075 14.031 4 3.508 3.262 .015 Between Groups Within Groups Total 131.040 99 113.867 95 1.199 17.173 4 df Mean Square 4.293 3.582 .009 F Sig.
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5=most), your satisfaction level from the applicable tools of performance appraisal system in your organization. [Interpersonal Relationship with the Raters of the Standard] 9. Please Rate the followings (1=least, 5=most), your satisfaction level from the applicable tools of performance appraisal system in your organization. [Authenticity of the Standard] 9. Please Rate the followings (1=least, 5=most), your satisfaction level from the applicable tools of performance appraisal system in your organization. [The various tools used for P.A. ] 9. Please Rate the followings (1=least, 5=most), your satisfaction level from the applicable tools of performance appraisal system in your organization. [Various parameters set for appraising your performance] Between Groups Within Groups Total 108.960 99 104.117 95 1.096 4.843 4 1.211 1.105 .359 Between Groups Within Groups Total 112.960 99 111.058 95 1.169 1.902 4 .475 .407 .803 Between Groups Within Groups Total 118.840 99 110.092 95 1.159 8.748 4 2.187 1.887 .119 Within Groups Total 138.510 99 127.989 95 1.347
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9. Please Rate the followings (1=least, 5=most), your satisfaction level from the applicable tools of performance appraisal system in your organization. [Transparency ] 9. Please Rate the followings (1=least, 5=most), your satisfaction level from the applicable tools of performance appraisal system in your organization. [Fairness] 9. Please Rate the followings (1=least, 5=most), your satisfaction level from the applicable tools of performance appraisal system in your organization. [Timely and accurate feedback on your performance and growth] 9. Please Rate the followings (1=least, 5=most), your satisfaction level from the applicable tools of performance appraisal system in your organization. [Actions taken after the evaluation of P.A.] Between Groups Within Groups Total 115.790 99 110.905 95 1.167 4.885 4 1.221 1.046 .388 Between Groups Within Groups Total 132.840 99 130.252 95 1.371 2.588 4 .647 .472 .756 Between Groups Within Groups Total 94.960 99 87.616 95 .922 7.344 4 1.836 1.991 .102 Between Groups Within Groups Total 109.790 99 103.989 95 1.095 5.801 4 1.450 1.325 .266
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From the above table we found that F value is not significant at P<0.05 as F value of establishment of performance standard is 3.582; communication of standard has 3.262; interpersonal relationship with rates of standards has 1.952; authencity of standard has 1.887; various tools used for PA .407; various tools used for PA has .407; various parameter set for your performance has 1.105 . So here the alternative hypothesis would be rejected at 5 percent significant level. Hence, We can say that there is no significant difference in the employee satisfaction levels from the implementation of performance appraisal procedure.
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8. Forced Choice, 180 Degree, Essay Evaluation tools are generally used for assessing performance of lower level of employees. 9. More than half of the employees find the parameters in the Organization KRA standards and other features used in PA procedure suitable. 10. Employees are relatively not satisfied with the different PA standards.
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8.CONCLUSION
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to enhance the Performance Appraisal System in the organization and provide satisfaction to the employees.. The dimensions like various Performance Appraisal tools applicable, its awareness ,its procedure in sampled organization, all play a vital role in the relation between oganization and its employees . With reference to the objectives of study, analysis of employee perceptions and satisfaction: an empirical study of increase in employee productivity comes forth . The study shows that almost majority of the respondents are relatively not satisfied with respect to appraisal provided by the organizations.
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Reference
Fletcher, 200224. Fletcher, C. 2002. Appraisal: An Individual Psychological Analysis. In Psychological Management of Individual Performance , Edited by: Sonnentag, S. 115 35. Chichester: John Wiley. Employees perception towards the performance assessment system and salary system (A Case Study at PT. Telkom Indonesia, Malang Regional Office) 2011 International Conference on Economics, Trade and Development IPEDR vol.7 (2011) (2011) IACSIT Press, Singapore The Role of Performance Appraisals in Motivating Employees Jurjen J.A. Kamphorst Otto H. Swank: Erasmus School of Economics, Erasmus University Rotterdam, and Tinbergen Institute. Tinbergen Institute is the graduate school and research institute in economics of Erasmus University Rotterdam, the University of Amsterdam and VU University Amsterdam. Wiese, D.S., & Buckley, M.R.(1998). The Evolution of Performance Appraisal Process. Journal of Management History, 4(3), 233-249. Bowles, M.L., & Coates, G. (1993). Image and Substance: The Management of Performance as Rhetoric or Reality? Personal Review, 22(2), 3-21. Edwards, M. R., and Ewen, A. J., (1996). 360-Degree Feedback: The Powerful New Model For Assessment And Performance Improvement. New York: AMACOM Dorfman, Peter W., Walter G. Stephan, and John Loveland. (1986), Performance Appraisal Behavior: Supervisor Perceptions and Subordinate Reactions. Personnel Psychology 39, Autumn, 57998. Levy, P. E. and Williams, J. R. (2004), "The social context of performance appraisal: A review and framework for the future", Journal of Management, 30, 881 905. http://www.enotes.com/performance-appraisal-and-standards-reference/performanceappraisal-and-standards Gosselin, A., Wemer,J, M,, & Halle, N. (1997), "Ratee preferences concerning performance management and appraisal", Human Resource Development Quarterly, 8. 315-333 Levy, P. E. and Williams, J. R. (2004), "The social context of performance appraisal: A review and framework for the future", Journal of Management, 30, 881905.
Prince, j , B,, & Lawler. E, E, (1986), "Does salary discussion hurt the developmental performance appraisal?", Organizational Behavior and Human Resource Decision Processes. 37. 357-375,
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Wendy R. Boswelljohn W. Boudreau, (2000), Employee Satisfaction with Performance Appraisals and Appraisers: The Role of Perceived Appraisal Use, Human Resource development, Quarterly, vol. 11. no.3, Fall. Performance Appraisals 101: A Universal Guide for Higher Education and Student Affairs, University of Georgia. Annals of the University of Petroani, Economics, 10(4), 2010, 215-224 215. Organizational Justice and Performance Appraisal http://www.ibimapublishing.com/journals/JHRMR/2012/159467/m159467.pdf (Schneier, Shaw & Beattie, 1991, p.298; Schneier, Beattie & Baird 1986 (a), p. 42). Strategies for improving individual performance and job satisfaction at meadowvale health Teresa Marchant.
Effects of performance appraisal quality on job satisfaction in multinational companies in Malaysia (MahdiehDarehzereshki, Faculty of Management, Multimedia University, Cyberjaya, Malaysia.) International Journal of Enterprise Computing and Business Systems ISSN (Online) : 2230-8849, -Volume 2 Issue 1 January 2013.
Perceived fairness of and satisfaction with employee performance appraisal -By Marie Burns Walsh, B.S., Louisiana State University, (1981) Examining the Relationship of Performance Appraisal System and Employee Satisfaction ( Rabia Karimi). Analysing The Performance Appraisal Systems Performance Commerce Essay http://www.ukessays.com/essays/commerce/analysing-the-performance-appraisal-systemsperformance-commerce-essay.php
Employee Engagement in the public sector, DTZ Consulting & Research, One Edinburgh Quay 133 Fountainbridge, Edinburgh, EH3 9QG, Scottish Executive Social Research, (May 2007) Performance Management and Career Mobility at the University of Minnesota, Presidents Emerging Leaders Program (2005-2006), Project Sponsor - Carol Carrier, Vice President for Human Resources A case study of performance appraisal in a small public sector organisation: the gaps between expectations and experience, -by john mooney,( December 2009)
Armstrong, M. (2000) Performance Management ( 2nd Ed) London, Kogan Page. Bach, S. (2000) Personnel Management, a comprehensive guide to theory and practice. London, Blackwell. (Martin and Jackson, 2000). - Analysing The Performance Appraisal Systems Performance Commerce essay
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QUESTIONNAIRE
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Questionnaire Questionnaire for the Employee Perception Towards the Performance Appraisal System in Service Industry in Delhi NCR Region.
1.Your organization belongs to which industry?
FMCG BPO Others 2 .Gender : 3.Age group : Male 20-25years 31-35years Female 26-30 years above 35 years Software Academics
4.Since how many years have you been working with this organization? 05-10 yrs 15-20 yrs 10 -15 yrs more than 20 yrs
5.Are you aware of Performance Appraisal tool prevailing in your organization? Fully aware Partially aware Not aware Cant say
6.Please tick the performance appraisal tools which are applicable in your organization. TOOLS Self Assessment Graphic Rating Scale Check List Behaviorally Anchored Rating Forced Choice 360 Degree 180 Degree Critical Incident Essay Evaluation Confidential Report LEVEL TOP
MIDDLE
LOWER
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7.Are you aware of the entire process of performance appraisal system in your organization? Fully aware Partially aware Not aware Cant say
8.Please tick the correct option. PARTICULARS Does your organization establish certain standard (KRA) for employees to achieve? If established do they convey their employee about the said standard to achieve in set period of time? Do they provide training in case there is need to achieve the standard? Does it measure your actual performance? Do you feel free to express your appraiser your disagreement regarding the appraiseal decisions? YES NO SOMETIMES CANT SAY
9.Please Rate the followings (1=most, 5=least), your satisfaction level from the applicable tools of performance appraisal system in your organization. SATISFACTION LEVEL Establishment of Performance Standards Communication of Standards Interpersonal Relationship with the Raters of the Standard Authenticity of the Standard The various tools used for P.A. Various parameters set for appraising your performance Transparency Fairness Timely and accurate feedback on my performance and growth Actions taken after the evaluation of P.A. RATINGS 1 2 3 4 5