INTRODUCTION

Introduction Over the past decades, performance appraisal has become such a
commonplace in organisational life that virtually every company has an appraisal
system. Performance appraisal is becoming a highly interesting and provocative
topic in management. Up to now researchers and practitioners have been writing
emphatically on the performance appraisal issue. The ever-growing emphasis on
performance appraisal has been attributed to the fact that it seems impossible for
supervisors or managers to effectively manage any organisation without the
adequate information on how people are performing, and how they meet their
responsibilities. Such information is necessary for critical management functions
like maintaining control of current operations and planning for the future, making
decisions about compensations and promotions.

PERFORMANCE APPRAISAL

Performance Appraisal is the systematic evaluation of the performance of

employees and to understand the abilities of a person for further growth and
development. Performance appraisal is generally done in systematic ways which
are as follows:

1. The supervisors measure the pay of employees and compare it with targets
and plans.
2. The supervisor analyses the factors behind work performances of
employees.
3. The employers are in position to guide the employees for a better
performance
INTRINSIC MOTIVATION
Intrinsic motivation occurs when we act without any obvious external rewards.
We simply enjoy an activity or see it as an opportunity to explore, learn, and
actualize our potentials."

Like most employees, you want to do well in your job. In order to do that, you
need a clear understanding of what is expected of you. You may also need
support and training to meet those expectations

WORK PERFORMANCE.

Performance management isn’t simply a once-a-year evaluation. Good

performance management is a continuous, positive collaboration between you
and your supervisor. By staying connected with your supervisor all year round,
you can make adjustments to your work performance as needed, and your
supervisor can assess and support your performance and ability to meet your
annual goals
 NEED FOR THE STUDY

A very good system of performance appraisal system is need by an organization

that wants to be dynamic and growth oriented. It is to be remember that the
employee needs to be satisfied and there should be no difference between the
review and appraised employee.

It plays a major role in the process of communication between the superior and
the subordinate. A good appraisal system is the best requirement to bring up the
organization and its productivity. IQ ESOLUTIONS is having a very good
system of performance appraisal system because it has laid its own philosophy
and well planned procedure in rating the employees which is very important for
the development of both individual and organization. Management is also
providing all the requirements of the employees for the completion of the work
and even the system constitute goal setting, periodic reviews, feedback and
consequence management, and finnaly rating is given as per this reviews.

The employee assessment has been done by the system of appraisal by the
superior and have the final authority for the rating. Here the employees are given
chance for their individual development. The action is taken according to the
ratings of appraised employee.

• Creating and maintaining the satisfactory level of performance of employees in

their present job.

• Provide feedback information about the level of achievement and behavior of

subordinate.
• Provide information which helps to counsel subordinate.

To prevent grievances and in disciplinary activities.

• Highlighting the employee needs and opportunities for personal growth and
development.

• Aiding in decision making for promotions, transfers, layoffs and discharges.

• Promoting understanding between the supervisor and the subordinates.

• Providing useful criteria for determining the validity of selection and training.
 SCOPE OF THE PROJECT

The study on performance appraisal system provides many scopes as the

productivity is entirely depend upon the performance.
 To know about the performance appraisal system at IQ ESOLUTIONS,
CHENNAI.
 To implement the appropriate performance appraisal method.
 To understand the role of motivation and job satisfaction which are vital for
performance
 To know about the impact of performance appraisal in the growth of IQ
ESOLUTIONS.
 To know about the working condition of the employees.
 THE OBJECTIVE OF THE STUDY

the study is to prepare a detail field report on the performance appraisal

procedure of IQ ESOLUTIONS and its linkage with other system of human
resource management (training, promotion, transfer, etc.).

1. To know the attitude and behavior of the employees of IQ ESOLUTIONS

2. To study about the various performance appraisal techniques, uses, etc
3. To understand the working environment of IQ ESOLUTIONS.
4. To study and analyze different performance appraisal schemes provided by
the IQ ESOLUTIONS
5. To study the existing annual performance appraisal system in IQ
ESOLUTIONS
6. To study the efficiency of the system and overall rating during last year.
7. To study the interpersonal and team relationship with peers, superiors and
subordinates.
8. To study the performance feedback and counseling system for employees
in IQ ESOLUTIONS
9. To analyze the employee attitude towards the present appraisal system.
10.To enhance job satisfaction and self actualization of employees by
encouraging, and assisting every employee to realize his or her full
potential.
 LIMITATIONS OF THE STUDY

As the study revolves around the performance appraisal of human resources

aspects the overall organization performance cannot be ascertained.
In spite of giving honest and sincere efforts there are several limitations, which
are as follows:

1. The period of study is only for about 3months, which is a major

constraint.
2. The perception bias or attitude of the respondents may also act as
hurdles to the study.
3. The study is only confined to performance appraisal.
4. The study cannot be oriented with all HRM practices followed by IQ
ESOLUTIONS.
5. because of the paucity of time requirements.
6. The sample size taken for the research is small due to the constraint of
time.
 STATEMENT OF THE PROBLEM

For many years people used PA to assess others as well as themselves to judge
performance (Becker, 1998; Foot and Hook, 2012; Jabeen, 2011). Yet, some
organizations fail to have a full understanding about the idea of PAS, its role and
implication (Goff & Longenecker, 1990). Some conduct performance appraisal
like a ritual. Performance appraisal has a great implication to employee
motivation. In order to reach at the required performance level, it is necessary for
any organization to develop a better motivation in the mind and spirit of
employees through effective PAS. It has been noticed that without a clear
purpose of effective PAS, there is no motivation at all to employees and no
organizational success (Bartol and Martin, 1998; Jabeen, 2011).

The Previous research conducted recently on the topic have found that there is
a POSITIVE and significant relationship etween performance appraisal and
motivation (Jabeen, 2011; Berehanu, 2014; Malik and Aslam, 2013; Selvarajan
and Cloninger, 2012; Salau et al., 2014). However, these studies have an
empirical gap in that they didn't clearly demonstrate the interaction of PAS with
the two types of motivation, extrinsic and intrinsic. There are limited researches
conducted in the case of that employees are not happy about the appraisal
practice. They fail to examine the effect of performance appraisal practice on
employee motivation.
 Having this underlying rationale in mind, the preliminary interview conducted
with unit head of Human Resource Management indicated that there are critical
problems associated with the practice of PA in the selected company such as lack
of a clear performance appraisal standards, rater's bias and poor communication
of the results of the PAS which put the PAS under question in the mind of the
ratees.

Thus, this study tries to identify the major problems and challenges of PAS and
examine the impact of PAS on employee motivation. Finally, attempt has been
made to consolidate facts from different literatures and to narrow the gap in the
existing body of knowledge in the area.
 BACK GROUND OF THE STUDY

Performance appraisals of employees can take many forms, both formal and
informal. Appraisals can be used to motivate your staff, as well as to improve
poor performance and recognize good performance. They are a vital part of
coaching your staff to peak performance.

Formal or Informal

Not all performance appraisals have to be formal. Simply praising an employee's

performance on a specific task as you walk past him can be an effective means of
building morale and encouraging high performance.

Building Morale

When you give your employees an opportunity to learn what an excellent job
looks like, their morale will increase because they will then be able to do a good
job.

Encouraging High Performance

You can expect employees to do a good job only if you provide the coaching and
mentoring they need. In addition, when an employee is seen doing a good job and
receiving kudos for it, other employees may try to emulate her.
Compensation

Although financial compensation is rarely turned down, surveys have shown that
money is not often the biggest motivator for employees. Generally, knowing what
is expected and being given the freedom to find the best way to achieve goals are
more important in providing job satisfaction.

Frequency

Formal appraisals should be done at least annually, though quarterly reviews are
encouraged. Informal appraisals can be done daily, whenever you see an
employee doing well or see an area where coaching can improve performance.
Don't pass up the opportunity when it arises.

The Boss' Performance

Your employees should be given the opportunity to evaluate your performance.

This portion of the performance appraisal allows your employees to tell you how
you can help them achieve greater success, which ultimately will make your
business more successful.

Company owners or executives may evaluate a company’s employees to ensure

they are working hard toward the company’s overall mission and goals. If an
employee is working toward these goals and performing well, a promotion or
appraisal may be given. This procedure differs greatly for each company, so ask
your employer about the given business’ performance procedures.
Performance Appraisal Purpose

Employees are frequently evaluated in terms of their performance and role in a

business, whether the business is large or small. This is to see if the employee is
working hard to reach the goals of the business in question and whether the work
provided by the employee is meeting the company’s mission statement. If the
employee is not performing as expected, the employer may perform an employee
review, where the employee is made aware of issues that need to be addressed in
the employee’s daily work tasks.

Employee Promotion

If the employee is working hard, addressing all tasks expected and performing
beyond expectations, the employer may give the employee a promotion as a sign
of excellence. The promotion may indicate that the employee is ready for more
responsibility in the company and is mature enough to play a larger role in the
business. A promotion may not be the result of any positive employee
performance review, as the employer may not have that option each time.

Using Performance Appraisals

If you are given a positive employee performance review, but do not get a
promotion as a result, do not think that you are less important in the business. Use
the positive feedback and appraisals to work harder and keep perfecting your
employment skills with the given business in question. The harder you work, the
more the employer will notice. If you are not given a promotion immediately, you
can work toward it through continuous hard work.
Setting New Goals

When you are given your performance appraisal from your employer, use the
opportunity to ask him what you can improve on to grow in the business. Use the
information he gives you to set new professional goals for yourself that you can
work towards. For example, your employer may tell you that you could work on
your management and leadership skills to get a promotion as event manager
rather than a sales person, for example. Use the feedback to set new goals and
work towards them for more positive appraisals and possibly a promotion.

Performance appraisal system is among the ancient management practice that

is used to evaluate performance of employees in organizations (Grint, 2007;
Tripathi, 2001). It is one of the traditional management responsibilities
discharged for variety of purposes: administrative, developmental and
motivational. Recently, performance appraisal has been considered as a sub-
system of human resource development as it is used for taking important
decisions like promotion, compensation, termination, feedback &
communication, training & development.

PA can serve as motivational tool as it involves in appraisal interviews,

counseling, participation in goal setting and work planning (Rao, 2009; Pareek&
Rao, 1992). 25 Prestige International Journal of Management & IT-Sanchayan,
Vol. 6 (2), 2017, pp. 25-36 ISSN : 2277-1689 (Print), 2278 - 8441 (Online)
Performance appraisal is an integral part of performance management because
important management practices such as motivation, work performance, rewards,
employee performance, internal communication, employee training &
development are all based on the performance appraisal.
 Thus, PA can serve as key component of competitive advantage for any
organization (Saeed and Shah, 2016; Becker and Huselid, 1998).

In today's highly competitive business environment, the role of human

resource becomes more vital. Among the HR functions, one of the most critical
issues that are believed to bring global success is performance appraisal (Marwat,
Qureshi & Ramay, 2004). According to these authors, the central issue of PA
purpose is to enhance an individual as well as organizational performance with a
continual motivation. Motivation, which is one of highly researched concepts
have been argued with different opinions by different scholars and practitioners.

According to Mullins (2005), motivation is a driving force to achieve some

goal. Robbins and Judge (2013) direction, and persistence of effort toward
attaining an organizational goal. Motivation could be intrinsic or extrinsic.
Csikszentmihalyi, Abuhamdeh & Nakamura (2005) and Ryan & Deci (2000)
conceptualize intrinsic motivation (IM) as the process of doing something
because of inherently interesting force enjoyable agent and where as extrinsic
motivation (EM) as doing something to get something as it leads to separable
outcome from the outside.
 Mullins(2005) argues that extrinsic rewards that are given by others,
externally in satisfying lower order needs(Human needs of Maslow's theory)
while intrinsic rewards are given from internally called self performance reward.
He believes that intrinsic rewards directly come from the higher order needs such
as individual's feeling of self-esteem and self-actualization to an individual him
or herself. For this reason, intrinsic motivation is said to be self-rewarding
motivation type (Ibid). There is widely accepted view that motivation can create a
positive working situation where as lack of motivation or individual's negative
perception can negatively affect company performance.

These motivation issues among other th appraisal. Some scholars like

Herzberg (1968, 1987) and Mullins (2005) Thomas and Bretz (1994) argue that
employee motivation depends on the manager's actions and behaviors toward the
employees.

If performance appraisals a diminish rather than enhance employee's

motivation and performance. Thus, biased assessment service in PAS can result
in de-motivated employees.
 Review of literature·

1.Fletcher C, Performance appraisal and management, November 4, 2001:

Performance appraisal has widened as a concept and as a set of practices and in
the form of performance management has become part of a more strategic
approach to integrating HR activities and business policies. As a result of this, the
research on the subject has moved beyond the limited confines of measurement
issues and accuracy of performance ratings and has begun to focus more of social
and motivational aspects of appraisal. This article identifies and discusses a
number of themes and trends that together make up the developing research
agenda for this field. It breaks these down in terms of the nature of appraisal and
the context in which it operates. The former is considered in terms of
contemporary thinking on the content of appraisal (contextual performance, goal
orientation and self awareness) and the process of appraisal (appraiser–appraise
interaction, and multi-source feedback). The discussion of the

2. context of appraisal concentrates on cultural differences and the impact of

new technology.· Gregory H. Dobbins, Performance Appraisal as Effective

Management or Deadly Management Disease, 1990: Understanding person

and system sources of work variation is fundamental to performance appraisal.
Two divergent perspectives on this issue, the traditional human resource
management view and the statistical process control view (Deming, 1986), are
contrasted.
 Two studies are reported that investigate two specific questions that arise from
a broader view of the appraisal process. Results indicate that managers and
subordinates believe that typical poor performance has different causes and that
actual productivity levels far outweigh person or system sources of performance
variance in appraisal judgments.

3·Gregory H. Dobbins, A Contingency Approach to Appraisal Satisfaction,

1990: The present study explored the moderating effects of organizational
variables on the appraisal characteristic appraisal satisfaction relationship.
Analyses indicated that the appraisal characteristics of action plans, frequency,
and rater training were more positively related to appraisal satisfaction when
subordinates experienced role conflict, were not closely monitored, and
supervisors had a large span of control. The results provide substantial support
for conceptualizing appraisal satisfaction as a contingent function of both
appraisal characteristics and organizational variables. Implications of the findings
for the design of appraisal systems, appraisal effectiveness, and future research
are discussed.
 4· Taylor Cox, Differential Performance Appraisal Criteria, 1986 :
Performance appraisal ratings of 125 first-level managers were analyzed to
investigate the degree to which the criteria used to evaluate the overall job
performance of black managers differs from that used to evaluate white
managers. The performance appraisal form included items that measured both the
social behavior dimen sion and task/goal accomplishment dimension of job
performance. The appraisal ratings of both groups on each dimension were
correlated with measures of overall job performance and promot ability. Results
indicated that social behavior factors are more highly correlated with the overall
job performance of black ratees than for white ratees. Implications of these
results for both black managers and organizations are discussed.

5.David A. Waldman, Predictors of Employee Preferences for Multirater and

Group-Based Performance Appraisal, 1997: This study conceptualizes and
measures user preferences for 360-degree appraisals and group-level performance
management (PM). Users are defined as either recipients of PM processes or
those whose job it is to administer the process. Aspects of individual users, their
work design, and current appraisal context were used to predict preferences. Two
studies were conducted involving data collection in a large Canadian
telecommunications conglomerate and a department of the Canadian government,
respectively. Predictors explained significant amounts of variance in user

preferences, especially those pertaining to group-level PM. Practical implications

are suggested with regard to collecting and using user preferences. In addition,
suggestions for future research are offered concerning the need to examine a
broad range of users in different organizational settings and to measure actual
system design features and their effectiveness.
 6.Dennis W. Organ, A Restatement of the Satisfaction-Performance
Hypothesis, 1988: This article reviews recent evidence in support of Organ’s
(1977) argument that satisfaction more generally correlates with organizational
prosocial or citizenship-type behaviors than with traditional productivity or inrole
performance. An attempt is then made to interpret just what it is in satisfaction
measures that provides this correlation, leading to the suggestion that fairness
cognitions comprise the major factor. Implications of this interpretation for
theory, research, and management practice are offered.
 Service industry

The service sector, also called tertiary sector, is the third of the three
traditional economic sectors. The other two are the primary sector, which covers
areas such as farming, mining and fishing; and the secondary sector which
covers manufacturing and making things. The service sector provides a service,
not an actual product that could be held in your hand. Activities in the service
sector
include retail, banks, hotels, realestate, education, health, socialwork, computer se
rvices, recreation, media, communications, electricity, gas and water supply. The
service sector is an important part of the economy. For example, in Australia in
2007, 85% of all businesses were in the service sector.

In 2009 there were more than nine million people employed in the service sector
in Australia, which was 86% of all jobs. In India, there has been a huge growth in
service sector businesses which made up 55% of India's GDP in 2006—
2007. Computer software businesses in India are increasing at a rate of 35% per
year. Many sector businesses focus on what is called the “knowledge economy”.

They need to keep ahead of other businesses by understanding what their

customers want and being ready to give it to them quickly and at low cost.The
Services sector, with a share of 55.2% in India’s Gross Value Added (GVA),
continued to be the key driver of India’s economic growth contributing almost
72.5% of GVA growth in 2017-18, as stated in the Economic Survey 2017-18
tabled in the Parliament by the Union Minister for Finance and Corporate Affairs,
Arun Jaitley. While the growth of Service Sector as a whole is expected to be at
8.3% in 2017-18, the growth in Services exports was 16.2% in H1 of 2017-18.
The Government has taken many initiatives in the different Services which
include digitization, e-visas, infrastructure status to Logistics, Start-up India,
Schemes for the housing sector, etc. which could give a further fillip to the
Services Sector.
 COMPANY PROFILE

IQ E-SOLUTIONS PRIVATE LIMITED is a Private Company limited by

Shares. It is registered with Registrar of Companies, Chennai on Nov 14, 2018.

Current Status of Iq E-Solutions Private Limited is Active.

It is a Non-govt company with an Authorized Capital of ₹ 10,00,000 (Ten Lakh

Indian Rupees) and Paid Up Capital of ₹ 20,000 (Twenty Thousand Indian
Rupees).

There are 4 Directors associated with Iq E-Solutions Private Limited. They are:
Suganthi Kannan,

Manoharan Thiruvengadam,

Venkatachari Padmanabhan and

Rajashree Ambigadoss.

Corporate Identification Number (CIN) of Iq E-Solutions Private Limited is

U74999TN2018PTC125783 and its Registration Number is 125783. Its
Registered Address is 'Flat 5 Shiv Apartments No 1 Nayakammar Street West
Mamabalam CHENNAI Chennai TN 600033 IN'.
COMPANY DETAILS

CIN U74999TN2018PTC125783

Company Name IQ E-SOLUTIONS PRIVATE LIMITED

Company Status Active

Date of Incorporation Nov 14, 2018

RoC RoC-Chennai

Registration Number 125783

Company Category Company limited by Shares

Company Sub-Category Non-govt company

Class of Company Private

Authorized Capital ₹ 10,00,000 (Ten Lakh Indian Rupees)

Paid Up Capital ₹ 20,000 (Twenty Thousand Indian Rupees)

Number of Members -

Listing Status Unlisted

 -

Date of Last Annual General Meeting (AGM)

Date of Latest Balance Sheet -

CONTACT DETAILS

Registered Flat 5 Shiv Apartments No 1 Nayakammar Street

Address West Mamabalam Chennai TN 600033 IN

Our Principles

Our passion is (I 4 U)-4“I-Principles” for designing and implementing,

intelligent, innovative yet simple business management initiatives to ensure
business results of our clients by offering high quality low cost consulting
services. Men, Money and Management (3Ms)remain our key focus elements
around which our services are rendered upon.

Vision Statement

To be the Most preferred Consulting organization, driven by, “I 4 U”, offering

high quality, low cost Business strategic growth plan, building brand to achieve
organizational business performance objectives
Mission Statement

Our Mission is to inspire and fulfill the dreams of entrepreneurs, SME,

transforming organization, People Competencies, through high impact Initiatives
implementation in managing Business, Finance, people, performance and
processes that deliver consistent improvement in sales revenue & profit.
 PRODUCT PROFILE

Why iQ eSolutions?
iQ eSolutions will act as business doctors and be an “One stop solution point for all
organizational business needs” to the client under 3 major segments to align with our key focus
elements (3Ms)
1. Business Management
2. Finance Capital
3. Human Capital

1.FINANCE HEALTH
Working Capital Management Solutions

 Sale is not a real sale unless realized Aim to reduce the cost of working capital by
detailed analysis of the working capital system of the company. Our team of Financial
Experts at first “DEFINE & DEVLEOP” a TRANSACTION CYCLE model for the
business and provide detailed advisory on each element of the cycle
 Receivable Management – we diagnose and treat the receivables to ensure increased
realization and reduced receivables. Our unique methodology aiming to achieve 90:90 –
“To get 90% payment within 90 days 0% over 180 days”
 Inventory Management – deep-dive into the key inventory metrics and enable the client
to install a robust inventory system.
 Cash/ OD management
 Payable Management
Accounting Solutions and Management Information System

 We believe accurate accounting makes a business highly scalable. Our team of

Financial Engineers enables installing a comprehensive system of checks and balance
with a proper Accounting System and Financial Analysis to help business owners make
smarter business decisions. Our wide array of services services include
 Day-to-Day Accounting Services
 Periodical accounting and Financial review
 Periodic delivery of MIS with key metrics to enable smart
decision making

Compliance and Legal Solutions

 Given the continuous changes and complexity in the legal and compliance environment,
our teams of legal doctors provide complete solutions on any legal and compliance
deadlocks. Few highlights of the wide array of services include
 Labor Law compliances
 Indirect Tax compliances (GST)
 Secretarial compliances
 Legal Opinions and Legal Drafts/Agreements
 Tribunal cases
 Handling pending litigations
 BUSINESS HEALTH

BUSINESS STRATEGIC CONSULTING SERVICES

 “A goal without a plan is just a wish”. Every business aspire to grow and we assist with
our 4I principle and provide unique strategic solutions to meet up the aspirations. Our
team of experts will provide Strategic Business Solutions for various pain areas of the
business through multiple time-tested tools and the “Balanced Score card” tool makes
our organization unique.
 Our wide of array of services include
 Business Strategic Planning & Organization Restructuring – which include setting
up Vision, Mission and Value system, to formulate structural changes suitable to the
strategies and to translate the Vision into actionable results.
 Sales Enhancement Program
 Business Growth Program
 Marketing Reformation Program
 Business Process Re-engineering

 Balanced Score Card

 Balanced Score Card method serves as a simple framework for Business Performance
Management and Review. It serves a key management tool giving direction to set
targets, measures and initiatives to achieve performance with measurable output.
HUMAN CAPITAL HEALTH
Human resource management (HRM)

 The process of developing strategies for Training and development for training them.
 Professional Pay rolls management with Grading, Career planning
 Employee engagement model with: Job Description, Induction, Payroll
management
 Performance management System linked to employees Performance
 Compensation Program for career oriented grading based on Performance & productivity
achievement
 Developing them in career by building skills & competencies through Functional, and Soft
skills Training and performance coaching
 R & R – Reward & Recognition programs to retain them by Performance reward

Performance management System

 PMS-Performance Management System linked to KPI-Key performance Indicator of

Organizational Business Objectives aligned to KRA-Key Result Areas of Employees
working in the organization.
 To develop KRA- Key Result Area / KPI – Key Performance Indicator for all roles
 To implement role specific competency, skill matrix and the development plan
 To achieve career oriented remuneration & performance incentive by review
method
 Training & Development

 Training & Development Plans (Technical / Soft Skills / Knowledge)

 Competency Development Programme
 Behavioral & Functional
 Skill Development Programme
 Performance Improvement Programme