Professional Documents
Culture Documents
ACKNOWLEDGEMENT
The journey from beginning to completion has been a very humbling experience. I
have been enriched not only in Knowledge but also as an individual. This project is
the inspiration, encouragement and intellectual as well as cooperation of so many
persons associated it. In this regards I would like to extend my gratitude and thanks to
all those who have helped me in the completion of this project.
I express my thanks to the Director of ZIBACAR Dr. Amod Markale for extending
his support. I would also like to thanks my friends for helping me in providing
information and documents.
Finally, I would like to thanks all the respondent for taking out time to fill in the
questionnaires. I would be failing in my duty if I don’t express my gratitude to my
family members and friends for all patience shown to me during the course of this
project and helped me making it successful.
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DECLARATION
Date
Place: Pune.
Signature of Student
(Vaishnavi Yadav)
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INDEX
2 Introduction.
2.1 Characteristics of Appraisal System
2.2 Performance Appraisal Method
2.3 Objectives & Scope of Study
3 Theoretical Background.
3.1 What is the Role of Performance Appraisal
4 Literature Review
5 Research Methodology
6 Data Analysis & Interpretation
7 Conclusion
9 Bibliography
10 Annexure.
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CHAPTER NO. 1
EXECUTIVE SUMMARY
1.1 Introduction of Project
1.2 Project Title
1.3 Organisation
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EXECUTIVE SUMMARY
This project report is a review based on theory as well as the industry outlook of
performance appraisal system of the organization. The performance appraisal system
of Epitome Components Pvt. Ltd. collected through various primary
and secondary sources have been included in the report which gives a fair idea of
the kind of appraisal system being followed across various Corporates.
This project is about the Performance appraisal which is also known as employee
appraisal, is a method by which the Job performance of an employee is evaluated.
Performance appraisals are regular reviews of employee performance within
Organizations.
1.3 ORGANISATION
project for epitome has been its recent investment in double side and multi-layer
manufacturing facilities. They have commenced commercial production of double
side pcbs from oct 2009. They are preferred suppliers to leading indian and mncs
such as lg, videocon, nokia, phillips, thomson, halonix, surya, bharti telecom, jabil,
flextronics Epitome components ltd is a privately held company promoted by the
dhoot family. The company was incorporated on 8th sept’94 and commenced
production of single side pcbs in nov’96. The initial capacity of the plant was 15000
sqm/month.
Epitome has been expanding its production capacity from time to time in order to
capture the market demands. Today the production capacity of single side pcbs stands
at 100,000sqm/month, which is the largest capacity in india. Epitome’s quest for
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continual improvement in processes and technologies has attracted joint venture with
epitome for manufacturing rf pcbs. This venture started operations in nov 2007 and
combines the rf expertise of trackwise with volume manufacturing capabilities of
epitome. The most important and others
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CHAPTER NO. 2
INTRODUCTION
2.1 Characteristics of Appraisal System
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INTRODUCTION
A performance Appraisal also referred to as a performance review, performance
evaluation, development discussion or employee appraisal is a method by which the
job performance of an employee is documented and evaluated. Performance
appraisals are a part of career development and consist of regular reviews of
employee performance within organizations. A performance appraisal is a systematic
general and periodic process that assesses an individual employee's job performance
and productivity in relation to certain pre-established criteria and organizational
objectives. Other aspects of individual employees are considered as well, such
as organizational citizenship behavior, accomplishments, potential for future
improvement, strengths and weaknesses, etc.
To collect Performance Appraisal data, there are three main methods: objective
production, personnel, and judgmental evaluation. Judgmental evaluations are the
most commonly used with a large variety of evaluation methods. Historically,
Performance Appraisal has been conducted annually however many companies are
moving towards shorter cycles, and some have been moving into short-cycle
Performance Appraisal. The interview could function as "providing feedback to
employees, counseling and developing employees, and conveying and discussing
compensation, job status, or disciplinary decisions". Performance Appraisal is often
included in performance management systems.
Performance management systems are employed "to manage and align" all of an
organization's resources in order to achieve highest possible performance. "How
performance is managed in an organization determines to a large extent the success or
failure of the organization. Therefore, improving PA for everyone should be among
the highest priorities of contemporary organizations".
Some applications of Performance Appraisal are compensation, performance
improvement, promotions, termination, test validation, and more. While there are
many potential benefits of PA, there are also some potential drawbacks. For example,
PA can help facilitate management-employee communication; however, PA may
result in legal issues if not executed appropriately, as many employees tend to be
unsatisfied with the PA process. Performance Appraisals created in and determined as
useful in the United States are not necessarily able to be transferable cross-culturally.
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2.1 Characteristics of an Appraisal System
Performance appraisal cannot be implemented successfully unless it is accepted by all
concerned.
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2.2 Performance Appraisal Methods
Numerous methods have been devised to measure the quantity and quality of
performance appraisals. Each of the methods is effective for some purposes for some
organizations only. None should be dismissed or accepted as appropriate except as
they relate to the particular needs of the organization or an employee.
Broadly all methods of appraisals can be divided into two different categories.
Past Oriented Methods
Future Oriented Methods
• Past Oriented Methods
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• Future Oriented Methods
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2.3 Objectives & Scope Of Study
Objectives
Scope
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CHAPTER NO. 3
THEORETICAL BACKGROUND
3.1 What Is The Role Of Performance Appraisal?
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1.1 What Is The Role Of Performance Appraisal?
We've seen from previous discussions, that people are one of a company's most
valuable assets. While most assets depreciate over time, people, viewed as assets,
may actually appreciate. One of the manager's major responsibilities is to improve
and update the knowledge and skills of employees appreciation of assets.
Performance appraisal plays a significant role as a tool and technique of
organizational development and growth. In essence, effective appraisal
systems provide both evaluation and feedback. The main aim of the evaluation is
to identify performance.
when performance does not meet the organizational standards. whereas feedback is
necessary to inform employee about those performance gaps. From the employee's
perspective, performance appraisal informs them about what is required of them in
order to do their jobs, it tells them how well they have achieved those objectives and
helps them take corrective action to improve their performance, and, finally, it may
reward them for meeting the required standards. The firm, on the other hand, needs a
performance appraisal system in order to establish principles of managerial
accountability. Clearly, where employees are given responsibilities and duties, they
need to be held accountable. One of the functions of performance appraisals is to
ensure that people are accountable for their organizational responsibilities. Perhaps
the most significant benefit of performance appraisals is the opportunities they
provide supervisors and subordinates to have one-on-one discussions of important
work issues. During appraisals, subordinates and supervisors can focus on work
activities and goals, identify and correct existing problems, and encourage better
future performance.
• Performance Appraisal and Motivation
Motivational research has recognized the power of recognition as an incentive.
Performance appraisals provide employees with recognition for their work
efforts. The appraisal system provides the supervisor with an opportunity to indicate
to employees that the organization is interested in their performance and
development. This recognition can have a positive motivational influence. on the
individual’s sense of worth, commitment and belonging.
• Performance Appraisal Training and Developement
Performance appraisals identify performance gaps. As such, they provide an excellent
opportunity for a supervisor and subordinate to recognize and agree upon individual
training and development needs. Performance appraisal discussion may identify the
presence or absence of work skills. Further, the need for training can be made more
relevant if attaining the requisite job
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1.2 Benefits of Performance Appraisal
• Improving Communication
All too often, employees and managers don't get along and can't understand why.
Problems that stem from a lack of communication can sometimes be resolved with a
performance appraisal. If the appraisal is used as an opportunity to describe the
criteria on which performance is judged using meaningful and relevant examples
then the employee will walk away from the meeting with a better understanding of
how to best perform his job. For example, "John, when I say you need to be more
customer-focused, what I really want is to see you greet the customers with a smile
when they enter the store, and ask how you can help."
• Providing a Career Path
The performance appraisal is the perfect opportunity to address long-term goals that
may not be on the everyday to-do list. Not only does this provide the employee with
an opportunity to be of greater use to an organization, the employee feels pleased and
valued. Lighting the way toward a successful career path inspires loyalty and stability
and can improve the bottom line, especially when the employee's first concern is the
health of the business, and subsequently, her career.
• Improving Decision-Making Ability
When a company has detailed information on employee performance, business
decisions become easier. Filling open positions with existing staff strengthens the
organization and promotes loyalty. Knowing which employees display what strengths
improves the speed with which projects can be assigned. Appraisals also provide a
framework when making decisions about compensation and layoffs. If the
organization becomes the unfortunate party to a lawsuit, the performance appraisal
can refute or support claims. As a result, the effective use of performance appraisals
helps an organization operate efficiently and with focus.
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CHAPTER NO. 3
LITERATURE REVIEW
17
LITERATURE REVIEW
Organizations exist to achieve goals. Goals are only met when individual employees
efforts matches with policy of the organization and thus bringing out success and
effectiveness. The assessment of how successful employees have been at meeting
their individual goals therefore becomes a critical part of HRM and here comes
Performance Appraisal System.
1. Is an organizational necessity.
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CHAPTER NO. 5
RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
Type of Research:
Descriptive research:-
Descriptive research study includes survey and fact finding enquiries of different kind
which help the researchers to describe the present situation that makes the analysis.
Descriptive research is “aimed at casting light on current issues or problems through a
process of data collection that enables them to describe the situation more completely
than was possible without employing this method”
Sampling size:-
Sample size determination is the act of choosing the number of observations or
replicates to include in a statistical sample. The sample size is an important feature of
any empirical study in which the goal is to make inferences about a population from
a sample.
The items selected from the population constitute the sample size. The study covers
the Candidates of Epitome Components Pvt Ltd
Sample size was 100
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Types of Data
1. Primary data
PRIMARY DATA is data that has not been previously published, i.e. the data
is derived from a new or original research study and collected at the source, it
is information that is obtained directly from first-hand sources by means of
surveys, observation or experimentation.
1. Interviews
2. Questionnaire
3. Observation
2. Secondary Data
Secondary sources of data collection:-
Secondary data was the main source of gathering information. The
default cases studied and analyzed were in the form of record files of
company’s employee.
Secondary data is the readymade or readily available data obtained
form following sources.
1. Internet :
2. Books :
Books are the easily available sources of data. By referring the
books from college library &the book store, the required
information for project work is collected.
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CHAPTER NO.6
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1.Which method of performance appraisal is used in epitome components pvt ltd
(please tick in appropriate box)
d)Managemet by Objectives
Straight
2 20 20%
Ranking
Weighted
3 0 0
Checklist
Management
4 0 0
by Objectives
360 Degree
Straight Ranking
Weighted Checklist
Management by
Objectives
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INTERPRETATION
2 In Your Company, the Key Competencies are considered for measuring your
performance?
Very True
TRUE
Partly True
Not True
Interpretation:
Most of the respondents (74%) found the above statement to be Not True´. This was
followed by 18% of the respondents feeling that this statement was Partly True for
their organization. Only 8% of the people found it to be True.
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3. Training programs provided to develop employees competence after
communicating his/her performance?
a. Very true b)true c)Partly true d)Not true
Very True
TRUE
Partly True
Not True
Interpretation:
Quite a large number of respondents (40%) shared the view that the appraisal system
did not give a clear understanding of all appraisals, job to both appraiser and appraise
by saying that it was Not True. Only 50% and 10% of the respondents felt that the
above statement was True and Partly True respectively.
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4.Employees regularly receive feedback about their potential for higher level
jobs?
0%
16%
14%
70%
Interpretation:
70% of the respondents agreed that the appraisal system did not helped them to know
their potential to perform at higher levels. Plan their performance well by saying that
it was Not True. Only 16% and 14% people felt that this statement was True and
Partly True.
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5. Your Company’s promotion policies are clearly defined and linked
performance?
Chart Title
Yes TRUE Partly True Not True
10%
10% 30%
50%
Interpretation
In above statement 50% and 30% employees are said that promotion policies are
linked with performance and 10% respondents feeling that this was partly true &
remaining 10% respondents found that above statement not true
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6.The Company rewards to your performance?
a)Yes b)No
Yes No
5%
95%
Interpretation
In above statements most of 95% employees are said that company provide
rewards for performance and remaining 5% are not agreed with this
statement.
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5. Do you receive any increment in your salary after performance Appraisal.
a)Yes b)No
No
20%
Yes
80%
Interpretation
In above statement 80% of employees said that they receive increment in their salary
after performance appraisal and 20% of employees are not agreed with above
statements.
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6. On what basis performance appraisal is made?
10%
30%
60%
Interpretation
In above statement most of 60% of employees are said that performace appraisal is
made by total output & 30% are said that it is depend on behavioural efficiency and
remaining 10% are said that both are importance for performance appraisal.
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8. Are you satisfied with the appraisal process of the organization?
a) Yes b)No
No
20%
Yes
80%
Interpretation
80% of employees are satisfied with appraisal process of organisation and remaining
20% employees are not agreed with above statement.
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9.The performance appraisal system helps to identify the strenghth and
weakness of the employees?
Chart Title
a)Strongly Agree b)Agree c)Disagree d)Strongly Disagree
0% 0%
20%
80%
Interpretation
In above statement 80% of employees are said that they are strongly agree that
performance appraisal system that helps to identify the strength and weakness of the
employees and remaining 20% are agree with above statement.
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10.The overall Implementation of performance appraisal is
5%
5%
10%
20% 60%
Interpretation
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CHAPTER NO. 7
CONCLUSION
34
CONCLUSION
35
CHAPTER NO. 8
36
FINDINGS & SUGGESTIONS
• Findings
1.Through the questionnaire it was found that were and known to most of the
top and senior management while middle and management at Epitome
Components pvt. Ltd. were a bit not clear about it. This could be attributed to
the fact that senior and top management were more involved in decision
making and policy formulation than are the middle and lower management.
2.In Epitome Components pvt.Ltd, he Organization believed that Self appraisal is the
best for managers and above. To improve interpersonal communication and behavior
by peers and subordinates is essential.
• Suggestions
1.To improve attendance there should be rewards for those employees who attains
above 95% attendance.
4.In the beginning of the year employee must know the performance
standards on which his/her performance will be judged in end of year.
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CHAPTER NO. 9
BIBILOGRAPHY
38
BIBILOGRAPHY
Human Resource Management by P. Subarao.
Search Engine:
1. Google.com
2. Yahoo.com
3. Wikipedia.org
Internet Sites:
1. www.epitomecomponents.com
News Papers:
1. The Hindu
2. Times of India
3. Indian Express
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CHAPTER NO. 10
ANNEXURE
40
ANNEXURE
4. In your company the key competencies are considered for measuring your
performance ?
a) Very true
b) True
c) Partly true
d) Not true
6. Employees regulary receive feedback about their potential,for higher level jobs?
a) Very true
b) True
c) Partly true
d) Not true
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7. Your companies promotion policies are clearly defined and linked performance?
a) Yes
b) True
c) Partly true
d) Not true
a)Yes
b)No
9)Do you receive Any increment in your salary after performance appraisal?
a)yes
b)no
10.
10.On What basis Performance Appraisal is made?
a)Total Output
b)Behavioural Efficiency
c)Both
a)Yes b)No
12.The performance appraisal system helps to identy the strength and weakness of
employees
42