1 1 Performance-Appraisals New

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION
Project Synopsis
A STUDY ON
DIFFERENT APPROACHES OF
PERFORMANCE APPRAISALS:
A SPECIFIC STUDY IN
SOFTWARE INDUSTRY
Project Guide Submitted

By
Project Synopsis checklist
1. TITLE OF THE PROJECT...............................................................................3

2. EXECUTIVE SUMMARY................................................................................3
3. STATEMENT ABOUT THE PROBLEM.........................................................4
4. RESEARCH METHODOLOGY........................................................................6
5. QUESTIONNAIRE.........................................................................................9
6. CHAPTERISATION SCHEME.....................................................................16
6.1. Introduction............................................................................................16
6.1.1 Background of the Study........................................................................16
6.1.2 Introduction to the IT System?...................................................................16
6.2. Research Design.....................................................................................17
6.3. Company profile.....................................................................................17
6.4. APPROACHES OF PERFORMANCE APPRAISAL.........................................17
6.5. Conclusion..............................................................................................18
6.6. Bibliography & Annexure........................................................................18
6.6.1 List of Tables..........................................................................................18
6.6.2 List of figures..........................................................................................18
6.6.3 Questionnaire.........................................................................................18
7. PERFORMA FOR SYNOPSIS OF PROJECT WORK........................................18
8. Guides Resume........................................................................................19
(This Project Synopsis is submitted in partial fulfillment of the requirement of Master of
Business Administration, Institute Of Management Technology Centre Distance Learning,
Ghaziabad)
1. TITLE OF THE PROJECT
A STUDY ON DIFFERENT APPROACHES OF PERFORMANCE APPRAISALS

AND EVALUATION OF EMPLOYEE SATISFACTION: A SPECIFIC STUDY IN
SOFTWARE AND COMMUNICATION INDUSTRY
2. EXECUTIVE SUMMARY
Performance appraisal is an important HRD mechanism. It is the process of

evaluating the performance of employees in terms of the requirements of the job for
which they are employed for administrative purpose, including suitable placement,
selection, promotion, giving financial rewards and other action which require
differential treatment between the members if a group as distinguished from actions
affecting all the members equally. Earlier performance appraisal was considered as a
simple and confidential method of rating the job performance of individual
employees by their superiors for the purpose of giving those remarks and rewards.
Early appraisal systems stressed assessment of personality tracts, which were
difficult not only to measure but also to relate constructively to the job itself. The
purpose of performance evaluation is to generate information to support
administrative decisions. The difficulties in measuring performance in software
companies like the performance evaluations are highly subjective. Goal setting is
ineffective when goals are too simple, when goals of not constitute the goal job,
when goal attainment is difficult to prove or measure, when performance is the
result of term efforts, peer and subordinate rating not followed no incentive for
performance, implementation of the appraisal system may not be as planned
because of time constraint and span of reports. Over a period of time appraisal
become a ritual.
To address the above a study was conducted to study the different approaches of
appraisals adopted by software companies. A sample of 30 software companies was
taken. A structure questionnaire was administered to HR managers/ executives of
different companies to elicit the information.
Major findings of the study include the most common type of appraisal is the open
system followed by MBO, a few companies followed 360 feedback while most of the
companies are planning to implement this powerful new model for employee assessment
and performance improvement. The positive areas/benefits of the appraisal system
followed included training and development inputs, career planning, and objective I
setting etc.
The criteria or measures to evaluate an employee in most of the companies are

technical competence, performance, achievement vs. objectives, key result areas set at
the beginning of a specific period, forming result oriented areas, leadership skills, team
work, attitude are behavior oriented areas compensation increase is related to
performance and depended on the performance code/rating give. Target is set for
employee being appraised for a period of 6 months; checklist for carrying out appraisals
and carrier planning is followed.
360° feedback process gives an all round perspective restricting the inconsistency factor
that exist in traditional appraisal system. Organizations remove layers of management,
flatten their structure, and begin using self-directed terms; the, only practical option for
performance feedback is from multiple sources. As organization changes their culture to
align with their vision and values, 360° feedbacks becomes an ideal choice to
communicate the new competencies required by the new values.
3. STATEMENT ABOUT THE PROBLEM
The research intends to study the different approaches of appraisals adopted by

software Companies and employee attitude, employee Satisfaction and industrial
morale. It also analyses the most commonly occurring errors within performance
appraisal methods and to understand the level of effectiveness of 360º appraisal in the
industry
3.1 NEED AND IMPORTANCE OF THE STUDY
This study is conducted with respect to understanding the different appraisal

systems conducted in the software industry and their effects thereafter in the same. Due
to time and resource constraints, the study was restricted to the software industry in
Delhi Region .
3.2 OBJECTIVES OF THE RESEARCH
1. To find out the different appraisal systems followed by software companies.

2. To find out who appraises the employees.
3. To analyze and study the benefits of the appraisal systems.
4. To analyze the shortcomings of the appraisal systems.
5. To identify the criteria and measures adopted to evaluate employee performance.
6. To find out the level of effectiveness of the 360 degree feedbacks.
3.3 REVIEW OF LITERATURE
Purpose
The literature review section examines the importance of search studies,

company data or industry reports that serve as a foundation for the setup of study. The
research dimension of the related literature and the relevant information begins from an
explanatory perspective, approaching towards specific studies which do related to the
judge the limitations and informational gaps in data from the secondary sources.
This analysis may reveal conclusions from past studies to realize the reliability of
the secondary sources and their credibility. This in turn enables one to rely on a
comprehensive review for the study.
ANALYSIS OF PREVIOUS STUDY
A survey about current practice, which is followed in companies to appraise

performance: ( Phatak, International Dimensions of Management)
Almost all software companies responding do have formal appraisal programs. About
93% of smaller organizations (those with fewer than 500 employees) have such
programs. About 97% of large organizations have them.
Rating scales are by far the most widely used appraisal technique. About 62% of small
organization use rating scales, 20% use essays, and about 19% use MBO. Among the
large organizations, 51% use rating scales, just over 23% use essays and about 17%
use MBO.
However, those using ratings as the main appraisal technique typically also require
narrative comments to justify rating and to describe employee strengths and weakness
and document development plans. Those using essays as the main appraisal technique
usually require an overall quantitative performance rating to facilitate employee
comparisons for compensation decisions.
The employee’s immediate supervisor makes Ninety two percent of appraisals. These
appraisals are in turn reviewed by the appraiser’s supervisor in 74% of the responding
organizations. Only about 7% of the organizations use self-appraisal in any part of the
overall appraisal process. Virtually all employees (99%) are informed of the results of
their appraisals. Overall about 77% are given a chance to respond with written
comments on their appraisals. In 69% of companies, appraisals are done annually.
METHODS OF REVIEWING THE LITERATURE

The review of literature does scrutinize the important research studies. The
primary sources that provide relevant information are the best form to retrieve data
from the research. The primary sources were encouraged with the help of distribution of
questioners as well as conducting personal interviews. With this the data received
enables the researcher to accurately arrive at the problem of the study and the
consecutively solutions to the same. The secondary sources were also relied on for
additional information. It includes company journal, newsletters, records, manuals etc.
CONCLUSION
Performance management lays an evaluative and developmental dimension to its

makeup, and is crucial in both linking rewards to performance and providing a platform
for the development of employees. Over concentration on the assessment of
performance can work to the detriment of effort aimed at establishing the development
needs of the individual in an open and honest way. The manager, as an appraiser, may
encounter difficulties in reconciling the roles of 'judge' and 'mentor'. Managers need to
develop the skills of coping with such tensions in their roles. In some organizations, this
problem is solved by having different managers carrying out performance and
development appraisals. Appraisal provides the context in which mangers can seek to
ensure that there is acceptable congruency between the objectives of the individual and
those of the organization.
4. RESEARCH METHODOLOGY
TYPE OF RESEARCH
The research design comprise of the plan and structure of investigation
conceived so as to arrive at the responses to the research queries. It there by addresses
the aims and objectives of the study, both descriptively and analytically.
SAMPLING TECHNIQUE
The sampling technique adopted for the study is non-probability Random sampling
technique according to the convenience of the researcher.
A questionnaire was administered to HR managers / executives of different software
companies to obtain data for the purpose of analysis.
SAMPLE SIZE
Data is collected using a sample of 30 software companies.
SAMPLE DESCRIPTION
The sample mainly consists of data from the primary sources that are utilized for the
purpose of this study. This is done by means of administrating questioners to human resource
managers / executives in different software companies in the city of Bangalore. Secondary
data like company journals, newsletters, records etc. were also relied on for retrieving further
information.
INSTRUMENTATION TECHNIQUE
Questionnaire and structure disguised questions.
ACTUAL COLLECTION OF DATA
Both secondary and primary sources of data are utilized for the purpose of this study.
Primary data is collected by means of administering a questionnaire to the Human Resource
Managers / Executives in different software companies. Secondary data is collected from
various records, manuals and other sources of the HR Department.
TOOLS USED FOR TESTING OF HYPOTHESIS
In attempting to arrive at a decision about the population on the basis of the sample
information it is necessary to make assumptions or guesses about the population parameters
involved such an assumption is called statistical hypothesis, which may or may not be true or
not is called test of hypothesis or test of significance. In the test of hypothesis it begins with
an assumption or hypothesis is called Null Hypothesis.
The null hypothesis asserts that there are no significant differences between the statistics and
the population parameters and whatever observes difference is there merely due to
fluctuations in sampling from the sample population. Null hypothesis is usually denoted by
the symbol, Ho. Any hypothesis that contradicts the Ho (null hypothesis) is called an
alternative hypothesis and is denoted by symbol H1. The technique used to test the
hypothesis is Test for proportion.
TEST FOR PROPORTION

Suppose the population of an attribute in a population is now known, we want to test whether
the proportion is a given value P. The null hypothesis is Ho : p = P. The alternative
hypothesis is H1: p ≠ P.
The large random sample of size n from the population, let x units possess the attribute.
Then the sample proportion is p = x/n.
p-P
And so, Z =
√ PQ
n
Therefore, the test statistics is | Z | = P = assumed level of effectiveness
Q = 1-P
p = level of effectiveness of sample
n = sample size
For the sample, if | Z | cal > k, Ho is rejected .On the other hand, if | Z | cal < Ho is accepted.
OTHER SOFTWARE USED FOR THE DATA ANALYSIS
For the data analysis, and the subsequent interpretation the researcher has adopted advanced
version of MS-EXCEL 2000. This application software has facilitated the researcher to
construct the frequency table, various kinds of graphs and to find out the average responses
from the sample. By this automated data analysis it has minimized the researcher’s time
constraint and reduced human errors and also accurate outlay of information.
5. QUESTIONNAIRE
There were two questionnaire were designed. First has been designed to assess the job
satisfaction level and morale of the employees in the organization. Second was designed for
the HR of the specific software companies.
HOW YOU FEEL ABOUT YOUR JOB?

The questionnaire consists of nine sections, each section having a number of
statements. Please answer all the statements. You are requested to be honest and frank
in your replies. You are not required to write your name. The answers given by you will
be kept confidential.
Please assess the extent to which each statement describes you and your organization
using the following five point rating scale; encircle the most appropriate rating.
1. Strongly Disagree (SD)
2. Disagree (D)
3. Indifferent (I)
4. Agree (A)
5. Strongly Agree (SA)
SECTION I (Personal Details):

1. Age : ______________________________________
2. Experience in the present organization: ___________
SECTION II (Job Itself):

S.NO SD D I A SA
:
A. TASK SIGNIFICANCE
3. My performance on the task determines or influences 1 2 3 4 5

performance of my colleagues also.
B. TASK IDENTITY
I feel that the task(s) I perform need independent

4. charge
and cannot be clubbed with some other responsibility. 1 2 3 4 5
C. SKILL VARIETY
5. The organization believes in multi-skilling. 1 2 3 4 5
I am given an opportunity to develop my skills further

6. to do 1 2 3 4 5
my job in the organization.
D. AUTONOMY
I am given independence in important decision-
7. making. 1 2 3 4 5
8. There is flexibility and freedom in the job that I do. 1 2 3 4 5
E. INTEREST IN WORK
My job is usually interesting enough to keep me from
9. being 1 2 3 4 5
bored.
10. Most days I am enthusiastic about my work. 1 2 3 4 5
SECTION III (Job Advancement/ Scope For Advancement):

S.NO SD D I A SA
GROWTH PROSPECTS / PROMOTIONS
11. I feel I can personally develop or grow in my job. 1 2 3 4 5
12. Promotions decisions are taken objectively. 1 2 3 4 5
13. The company has satisfactory promotion policy. 1 2 3 4 5
Good performance is also considered in promotion

14. decisions. 1 2 3 4 5
SECTION IV (Management Responsiveness):
S.NO SD D I A SA
:
A. RECOGNITION AND APPRECIATION
15. I feel that my efforts are valued in the company. 1 2 3 4 5

I will be recognized and appreciated when I will go

16. beyond 1 2 3 4 5
what is expected in my job.
B. FEEDBACK
My supervisor(s) constantly provide me feedback,
17. which 1 2 3 4 5
enable me to improve my performance.
C. MONETARY BENEITS (Pay, Perk, Benefits, Compensation)
18. There is a significant component in my compensation 1 2 3 4 5

package that is performance linked.
All incentive schemes are transparent. Linkages of

19. incentives 1 2 3 4 5
with performance are clear.
Compared with people in similar jobs in other

20. companies, I 1 2 3 4 5
feel my pay is fair.
21. I personally feel that monetary rewards alone are not 1 2 3 4 5

sufficient to motivate me to work better.
D. SECURITY
In my understanding, there is no threat to my job due
22. to 1 2 3 4 5
redundancy or any other reason.
E. PARTICIPATION / PARTICIPATIVE MANAGEMENT

My superiors involves me in the decision making
23. process. 1 2 3 4 5
24. I can express frankly my feelings and reactions in the 1 2 3 4 5

meetings and to my senior managers.
I personally feel that my subordinates have to be

25. given very 1 2 3 4 5
clear directions to execute their work.
F. GRIEVANCE HANDLING
There is a fairly clear-cut and detailed grievance
26. handling 1 2 3 4 5
mechanism in place in my organization.
G. TRAINING AND LEARNING

My company sends people for training when they
27 need to 1 2 3 4 5
learn new things related to their job profile.
It is my company’s express policy to proactively train

28. people 1 2 3 4 5
from a long term H.R development perspective.
H. COMMUNICATION SYSTEM
29. I am kept informed on what goes on here. 1 2 3 4 5
30. I am satisfied with the communication and the way 1 2 3 4 5

information flows around in my organization.
I. REWARD
31. Mainly excellence in performance and getting tasks 1 2 3 4 5

accomplished is rewarded.
Knowledge and expertise are recognized and

32. rewarded here. 1 2 3 4 5
SECTION V (Working Groups & Culture):

Factors included in this are:
1. Supervision (Quality of supervision, support from supervisors, supervisory

treatment, competency of the supervisor)
2. Relationship with co-workers
3. Support from co-workers
4. Cohesiveness
5. Teamwork
6. Culture
S.NO SD D I A SA
A. SUPERVISION
My superior / boss gives me enough freedom to do
33. things in 1 2 3 4 5
my own way.
My boss provides me enough guidance about how I

34. should 1 2 3 4 5
perform my job well.
Supervisors try to use their expertise and competence

35. rather 1 2 3 4 5
than their formal authority in influencing their
subordinates.
B. WORKING GROUPS
I feel that ‘we’ work as a team of mutually
36. complementing 1 2 3 4 5
individuals in our section / department.
My company provides enough conducive environment

37. – 1 2 3 4 5
formally and informally – to work in teams.
38. People get along well with each other in my section. 1 2 3 4 5
The people I work with are very friendly and

39. supportive of 1 2 3 4 5
one another.
SECTION VI (Status / Occupational Status):
S.NO SD D I A SA
:
I don’t care about rank and job titles; its what I am
40. doing is 1 2 3 4 5
important.
I think my position should be reflected through

41. various 1 2 3 4 5
status symbols, etc.
My organization ensures that hierarchical differences

42. are 1 2 3 4 5
clearly discernible.
SECTION VII (Working Environment):

1. Conditions of work, physical environment
2. Working hours
3. Fatigue and monotony
4. Provision of food
5. Transportation
S.NO SD D I A SA
43. I have convenient working hours. 1 2 3 4 5
I feel exhausted by the time I am through with my

44. day’s 1 2 3 4 5
work.
45. In a typical day’s work :
We get good lunch and other snacking items. 1 2 3 4 5
Transportation to my workplace and back is

46. comfortable
experience :
Because the company has good transportation
facilities. 1 2 3 4 5
SECTION VIII (Social Relations):

1. Participation in social activities
2. Friends and associates.
S.NO SD D I A SA
:
My interaction with colleagues extends beyond office
47. hours. 1 2 3 4 5
48. Our company organizes lot of events like sports meet, 1 2 3 4 5

recreational activities, family outings etc.
SECTION IX (Organizational Commitment):

S.NO SD D I A SA
:
I think I can proudly tell the name of the organization I
49. work 1 2 3 4 5
for.
Even if the company would reduce my salary because

50. of
financial problems, I would be reluctant to change to 1 2 3 4 5
another company.
QUESTIONNAIRE FOR HR
Name of the Organization:
Designation:
Total No. Of employees in the Organization
1. Do you appraise an employee by an appraisal system?
Yes No
2. If yes, what is the system of appraisal adopted by your company?
3. How often are appraisals carried out in your organization?
Quarterly Half Yearly
Annually Others (Please Specify)

4. What are the criteria used in your company to evaluate an employee?
Performance Customer Focus
Technical Competence Attendance
Target Vs. Achievement Key Result Areas
Quality of Output 3 Point Scale
5. What is the rating system used in your company?
Scoring Comments
Both
If scoring is it
Alpha Numeric
Both
6. Do you obtain feedback on the person being appraised?
Yes No
How is feedback given to the

7. employees?
Written Oral
Detailed Summarized
Self-Assessed Manager Assessed
Do you share both positive and negative feedback with appraise in the same
8. meeting?
Yes No
9. Do you follow a self-assessment of an employee?
Yes No
a) If yes, is it integrated into the appraisal system you follow?
Yes No
Is compensation increase related to an appraisal in any

10. way?
Yes No
Does the appraiser set targets for an employee being

11. appraised?
Yes No
If yes, for what period?
3 Months 3-6 Months
6 Months 12 Months
12. Do you have a checklist for carrying out appraisals?
Yes No
13. Do you follow career planning?
Yes No
14. What would be the level of effectiveness of 360 score when implemented as a form
of appraisal?
Less than 20% 20% - 35%
35% - 50% above 50%
6. CHAPTERISATION SCHEME
The project would deliver the following topics:
 Introduction
 Research design
 Company profile
 Approaches of performance appraisal
 Findings, suggestions and conclusions
 Bibliography and Annexure
6.2.Introduction
This chapter would provide a short introduction of what is Performance Appraisal and the
Background of the research and what would be divided on 3 basic chapters as
mentioned below.
6.1.1 Background of the Study

This chapter would be designed in such a way to provide an overall scenario of the IT
world and the lateral shift of the Methods used and result observed. Almost all
software companies responding do have formal appraisal programs. About 93% of
smaller organizations (those with fewer than 500 employees) have such programs.
About 97% of large organizations have them.
6.1.2 Introduction to the IT System?
This chapter will have an elaborate description of Information Technology and ERP
systems. ERP which is one of the latest developments in software for business enterprise
wide Resources Planning (ERP) System is an integrated business management system
6.2. Research Design
The research intends to study the different approaches of appraisals adopted

by software Companies.
6.2.1 Statement of the problem

It also analyses the most commonly occurring errors within performance appraisal
methods and to understand the level of effectiveness of 360º appraisal in the industry
6.2.2 Need and importance of the study

This study is conducted with respect to understanding the different appraisal systems
conducted in the software industry and their effects thereafter in the same
6.2.3 Objectives of the study

To find out the different appraisal systems followed by software companies
6.2.4 Review of literature

The literature review section examines the importance of search studies, company data
or industry reports that serve as a foundation for the setup of study.
6.2.5 Operational definitions of concepts

A more comprehensive definition is, “Performance appraisal is a formal structured
system of measuring and evaluating an employee's job and how the employee can
perform effectively in future so that the employee, organization all be benefited."
6.2.6 Research
Methodology 6.3.
Company profile
6.3.1. Indian IT industry

The Indian IT-ITES industry is broadly categorized into IT services and software, ITES-BPO
and Hardware segments. The industry continues to chart remarkable double-digit
growth, with industry aggregate revenue for 2005-06 expected to reach US$ 28 billion.
The industry is forecast to grow more than fivefold over FY 1999-06, at a CAGR of 28
percent.
6.3.2. Industry Trends.
6.4. APPROACHES OF PERFORMANCE APPRAISAL
Analysis of data was done with the purpose of summarizing the collected data and
organizing these in such a manner that they answer the research questions. Percentage
analysis was used for analysis
of data and the results have been presented by way of pie charts, bar charts, with the
help of SPSS package
6.5. Conclusion
At the end of the project report we can mention why an organization would and should use
an Effective Performance Appraisals techniques and its key benefits.
6.6. Bibliography & Annexure
6.6.1 List of Tables
6.6.2 List of figures
6.6.3 Questionnaire
7. PERFORMA FOR SYNOPSIS OF PROJECT WORK
PROFORMA FOR SYNOPSIS OF PROJECT

WORK
Name: Amit Kursija Enrol. No.: 52102420
Address for Correspondence :
BA/ 45 - B Phase 1 Ashok Vihar Delhi 110052
Mobile No: +91-9873253288
Major area of specialization in which project work is to be
undertaken: Human Resources
Questionnaire attached: Yes
Resume of Project Guide attached: Yes
Consent letter of Project Guide: Yes
Phone No. of Project Guide: 9990688283
Date of submission: August 14, 2008

8. Guides Resume
As per the guidelines please find below the resume of Mr. Rajiv Malhotra who has guided
and helped me design the below project. He also assisted me run this project within our
organization and assisted to go get the data from the other software companies in delhi
and NCR region, without his approval and help this would not have been possible.
Objective
To specialize in organization level Human Resource Planning and Development. To

keep developing HR skills and be a part of a dynamic team and help the organization
grow, by suggesting and implementing innovative HR policies and initiatives.
Academic profile
• Master of Personnel Management & Industrial Relations (MPM&IR), 2 Years Full Time
Post Graduate Course from Jiwaji University, Gwalior (1999)
• Higher Diploma in Software Engineering (HDSE) from Aptech. (MS -DOS, Windows
95/98/NT, MS- Office, C, C++, Oracle, D2k, Networking, SSAD, Internet Browsers) (1999)
 B.Com from Jiwaji University, Gwalior (1997)
 Pursuing Diploma in Training & Development from ISTD, Delhi (Final Semester)
Work Experience
S.NO ORGANISATION DESIGNATION DURATION

1. Intersoft Data Labs Pvt. Ltd Manager-HR Aug 2006 – Till Date
2. Fidelity National Information Services Assistant Manager-HR Aug 2005– Aug 2006
(Earlier know as Second Foundation
India
Pvt Ltd)
Developmen
3. National Dairy t Board Deputy Manager-HR Aug 2004– Aug 2005
(NDDB)
Deus
4. Technology Senior Executive-HR Nov 2002– July 2004
Recruiter Oct 1999 – Nov 2002
August 2006 to Till Date : Intersoft Data Labs Pvt. Ltd., Gurgaon
Manager-HR
Handling a team of seven HR professionals and overseeing all HR activities of the organization
including recruitment, people practices, employee satisfaction, performance management,
organizational development, audits (BS7799, ISO27001, CMMi) and compensation management
etc.
Key Responsibilities
HR Strategy and processes

o Contributing to HR strategy and ensuring that action plans are created and
implemented to implement the strategy.
o Identifying Key Result Areas for the processes annually with respect to business
Operations with inputs from the business heads and monitoring the implementation of
these.
o Designing of role competency matrix for each role in the organization.
o Documentation and release of the Human Resources Manual for the organization.
o Designed Developed and implemented People Management policies and
processes after benchmarking with the best in the industry and as per
company requirements.
Define and implement strategies for recruitment & resource management

o Define and implement strategies for recruitment & resource
management. o Define manpower recruitment plan.
o Define processes and policies for selection, outsourcing and
induction. o Interview and shortlist candidates for interviews
with line managers. o Manage Campus and Off Campus hire.
o Conceptualize and define systems & tools to support Resource
Management. o Allocate resources to projects based on projections.
o Developing, Monitoring and Maintaining of database on the basis for immediate
future manpower requirements. Prepare / Update Monthly Manpower Report.
Employee Management & Organizational Development

o Facilitation of OD Initiatives like compensation benchmarking, open house, E-
Sat etc. o Conducting Exit interview and preparing Attrition Analysis as part of
retention strategy.
o Actively participated in Implementation of Quality System for successful certification
of BS7799, ISO: 27001 & CMMi.
o Ensuring effective HR Services deployment, Process compliance & Service delivery
as per SLA. o Sharing information with the employees in different forums.
o Taking care of entire employee engagement/retention/welfare.
o Employee Satisfaction Index on a quarterly bases to ensure a transparent culture
and healthy environment. Ensuring fulfillment to Internal Customer’s expectations on
time. Counseling employees, from time to time on behavioral attributes, defusing
conflicts, building a congenial and performance friendly work atmosphere.
o Anchoring the employee help-desk. Addressing employee issues and concerns.
o Organizing Get-togethers (Monthly / Annual) like Fun Friday; Employee Day;
Family Get-togethers; Monthly sports competitions.
o Corporate Social Responsibility - Blood Donation camps, Computer literacy camps,
Philanthropy, o Visits to various NGO.
Training and Skill Development

o Prepare/Maintain Annual Training Calendar, Training Attendance, Feedback Records,
Measuring
Training Effectiveness and Training Analysis.
o Plan for and schedule the induction events in anticipation of the dates of joining of
Individuals.
Ensure completion of joining formalities in terms of process steps and
documentation.
o Skill Inventory Application Maintenance.
Performance Management
o Ensuring a fair and transparent process of appraisal through feedback sessions
with employees
and Human resource presence (where necessary).
o Managing the overall Appraisal process – Policy Formulation & Clarification,
communication /
rollouts, coaching employees / managers in writing effective appraisals, Data
Validation, Goal
Setting, Self Appraisal, Appraiser evaluation, Reviewer evaluation, identifying
development
plans for employees conducting ensuring the appraisal process is closed with
the time line.
o Performance Normalization meetings, Post-Appraisal data mapping, analysis and
finalization of
rewards.
August 2005 to August 2006 : Fidelity National Information Services (Earlier know as
Second Foundation India Private Limited), Chandigarh
Assistant Manager-HR
Company Profile
Fidelity National Information Services (Earlier know as Second Foundation India Private
Limited), a leading provider of global software services, specializes in
Business Intelligence, Software Security and Web Services solutions. It
houses more than 650 employees.
Job Responsibilities
Policies & Procedures

o Drive the design and implementation of HR strategies in a high growth
environment and also formulate comprehensive HR policies.
o Designed Developed and implemented People Management policies and
processes after benchmarking with the best in the industry and as per
company requirements.
o Documentation of policies & processes necessary for smooth implementation of
policies. Regular review of policies & process improvements.
Capacity Planning and Recruitment

o Preparing and monitoring recruitment plan
o Ensuring acquisition of the best talent through a process of recruitment tests and
interviews. o Plan for Campus and Off Campus hire and its implementation.
o Sourcing talent and their Reference Check; Background and employment
verification.
o Assisted in review and implementation of effective performance appraisal uniformly
all across the organization.
o Defining various roles within the organization as well as skill required at each level.
(Job and Role Descriptions). Defining the organization structure and career progression
path.
o Manage Goal Setting Exercise.
OD Initiatives
o Facilitating healthy organizational culture by promoting open house discussions,
suggestion schemes, E-Sat (ESS), Intranet etc.
o Employee Engagement activities like Open House, Monthly Events,
Employee Events, Celebrations, Yoga Classes, Grievance Handling etc
o Manage exit formalities. Conduct exit interviews, analysis and finalize F&F settlement.
Actively participated in Implementation of Quality System for successful
certification of ISO: 9001:2000.
Trainings
o Organizing training programmes for existing employees and freshers hired through
campus & off-campus.
o Organising Induction trainings for new hires.
o Identification of behavioral and technical training needs.
o Generating feedback from the trainees with regard to the benefits drawn from the
training.
Compensation Management
o To gather and update information about the compensation/salary, employee welfare
and incentive schemes with respect to competitor’s vis-à-vis market intelligence.
o Improve communication of policies and benefits through Benefits campaigns; Policy
clarification sessions for the HR and Resourcing team; Timely response to
queries on policies and benefits.
o Conduct Salary benchmarking exercises.
o Active interaction with Resourcing team for taking inputs on market trends and equip
them with recruitment guidelines.
Compliance
o Shops and Establishment
o PF Compliance
o Payroll
o Contractual staff
o Mediclaim Insurance
August 2004 to August 2005 : National Dairy Development Board (NDDB), Anand
(Gujarat)
Deputy Manager-HR
Company Profile
The NDDB is a Public Financial Institute and was created to promote, finance and
support producer-owned and controlled organizations. Fundamental to NDDB's efforts
are cooperative principles and the Anand Pattern of Cooperation. It houses more than
1500 employees.
Human Resource Information System (HRIS)- ERP Implementation

o Undertake necessary actions for implementation of HRIS (ERP-Orion)
module. o Provide support/inputs in context of problems arising during
implementation.
o Continually monitor HR/Client information needs and design new/modify existing
system to meet changing requirements.
o Provide accurate, timely responses to information requests from operating groups,
Support Group and others as appropriate.
o Design, generates and distributes a variety of reports and statistical summaries.
Prepare and submit periodic, recurring activity & status reports to superiors
Training & Development

o Devising an Induction Intersoft Data Labs Pvt. Ltd, Compensation, etc.
o Organizing training programmes for Officers & Staff, Identification of training needs,
Generating feedback from the trainees with regard to the benefits drawn from
the training.
o Process the Appraisals of the employees, Initiation appraisal forms and follow-up for
timely receipt of the same.
o Assisted in Six Monthly & Annual Performance Feedback.
Operations
o Responsible for personnel functions like joining, LTA, Separation, Full & Final
Settlement, etc, Formulation of Organization Structure.
o Employee grievance handling. Issuance of Various Certificates i.e. NOC for Passport,
NOC for Visa, Verification, Residence Proof, Service Certificates etc.
o Periodic Voluntary Medical Check-up (PVMC), Permission for Higher Studies,
Training/Visits Abroad. Proposals to MD for approval for various other purposes.
o Implementing formal system of Internal Communication- Interaction meeting
with Unions,
Other participative
Forums.
o Welfare activities for employees and their family
members.
o Liaisoning with All Department Heads regarding HR related
matters.
Deus Technology,
Oct 1999 to July 2004 : Delhi
(Nov 2002 to July
Senior Executive HR 2004)
Recruiter (Oct 1999 to Nov 2002)
Recruitment & Selection

o Organizing the entire recruitment process.
o Sourcing–Advertising, Job portals, Consultants, Referrals, Head hunting, cold
calling, Internet researching Getting References etc.
o Maintaining targets & quality.
o Initial screening, Scheduling & Coordinating for further Interviews.
o Responsible for recruitments at all levels and spheres
(National/Overseas) o Offer Negotiations & Follow up, Reference
Checking.
o Generation of activity reports and analysis.
o Induction, Verify credentials if required through verification process, Statutory

compliance,
Confirmations, Probation reports, Confirm / Extension / Termination.
Performance Appraisal
o To organize Appraisals as per the policy and to Ensure Appraisals are done and
are in order.
o Performance evaluation and compilation and finalization of rewards.
o Issue promotion / increment letter as applicable.
Payroll Management
o Responsible for preparing Salary statement every month with all necessary deduction
and timely
o disbursement.
o Providing salary statement and monthly report to accounts department on a
monthly basis.
Operations
o Attendance & Leave Management, Full & Final preparation, Exit Interviews,
Employees
Communication, Employees Database Management etc.
o Introduced Suggestion Box and Movement Register in the organization.
o Drafting of Offer Letters, Appointment Letters, and Experience Letter, Relieving Letter,
Increment
Letter, and Salary Certificate etc.
o Issue of Warning Letters, Maintaining Discipline Maintenance of harmonious
Relation.
o Design and regularly updating the HR manual.
o Organizing employees get-togethers and parties to celebrate the special occasions.
o Induction Trainings, Training to Resource Executives.
o Ensure compliances w.r.t. PF, Gratuity, Shops & Establishment Act, etc.
o General administration activities-Telephone/Fax, Library Management, Hotel
& Travel
Arrangement, etc.
Professional Memberships Details
o Individual Life Member of National HRD Network (NHRDN), Delhi Chapter.

o Student Member of Indian Society for Training & Development (ISTD), Delhi
Chapter.
Organisation Training Details
Training/Membership Organisation Duration Date

Intersoft Data Labs Pvt.
Training on Metrics Ltd. Half Day May 28, 2007
Intersoft Data Labs Pvt.
Introduction to CMMi Ltd. 1 Day Apr 12, 2007
Business Communication FIS (Second Foundation) 2 Days May 12-13, 2006
Stress Management NDDB 1 Day Jan 2005
Training On ESI, PF,
Bonus, ATC Infotech (P) Ltd 1 Month April-May 2000
Gratuity
Personnel Functions (OJT) Flex Industries Ltd 3 Months 1999
Grievance Handling (ST) HTC Ltd 2 Months 1998
Personal Details
Date Of Birth 17th Jan, 1977

Permanent Contact Address ‘Bhardwaj Sadan’, City Centre, Opposite BSNL Building,
Tulsi Vihar, Gwalior (M.P)-474011.
Phone 0751-223876
Passport No A8539380
Driving License No. Y-1964/20
1.1 Background of the Study

Information technology (IT) revolutionized many aspects of a business. There is
hardly any organization which has not installed at least one ubiquitous computer. There is a
wide choice for computer users - from a simple PC to sophisticated network of computers.
Applications of computers in various function is common these days; from mere data storage
to more advanced software packages like ERP which can do many things in an organization
but fortunately, cannot substitute common sense or human ingenuity.
It is well to remember that IT is one more tool in hands of a management to get

things better and faster.
Example of IT application, ERP which is one of the latest developments in software for
business enterprise wide Resources Planning (ERP) System is an integrated business
management system which covers some important aspects of business such as logistics,
production, finance, accounts, human resources, planning, materials and warehouse
management. Right from the receipt of an inventory, an ERP system tracks materials, capacity
and labor resources. Thus an ERP system package claims to aid a business to manage it
activates dynamic and integrated manner.
But it is equally important to understand and appreciate the flip side of such
sophisticated IT packages like ERP. First of all the people ho handle such a package must be
qualified and must posses relevant work experience in the functional module, which a person
wants to get trained.
An organization, which wishes to work with ERP, must have already had experience
with proper working IT infrastructure. There should be enough number of terminals for
concerned people to key in data or run a query.
One of the toughest things to overcome is the attitude of the people for adapting to a
change. Thus ushering in a new "IT culture" remains one of the greatest challenges for any
management interested in adapting IT as a tool in as many functions of the organization as
possible.
The vital role of IT is to support a management and not control it. Thus the IT most
understands their role vis-à-vis decision-making. Just because a sophisticated IT package has
been installed in an organization cannot guarantee success .If for example, a vendor is
supplying poor quality supplies consistently, the information system will tell the management
of such a fact faster. But now it is up to the management to initiate corrective measures- visit
vendor to assist him to come up to standard, develop alternate vendor or import.
Some cautious management would like to implement information system module by

module to gain experience. Such a procedure may or may not guarantee success. Some IT
experts urge an organization to implement a total IT system such as ERP-a classic case of all
or bust.
In the enthusiasm to appear very modern and up-to date a management may go in for
IT package when the ground reality within the organization is not conductive to such a
drastic change. On the other hand a few well-tried techniques do wonders for an
organization. For example, an organization's urgent need may be to change existing
technology to an upgraded one. An ERP package obviously, won't tell the management to do
just that. Also, a few time -honored principles like "do it right at the first time" must be
followed in an organization with or without a sophisticated IT tools.
A responsible management will put the IT in its place to serve the overall business
interests.
2.1 Statement of the Problem

The research intends to study the different approaches of appraisals adopted by

software Companies. It also analyses the most commonly occurring errors within
performance appraisal methods and to understand the level of effectiveness of 360º appraisal
in the industry
2.2 Need and Importance of the Study
This study is conducted with respect to understanding the different appraisal systems
conducted in the software industry and their effects thereafter in the same. Due to time and
resource constraints, the study was restricted to the software industry in Bangalore City.
2.3Objectives of the Research
1. To find out the different appraisal systems followed by software companies.

2. To find out who appraises the employees.
3. To analyze and study the benefits of the appraisal systems.
4. To analyze the shortcomings of the appraisal systems.
5. To identify the criteria and measures adopted to evaluate employee performance.
6. To find out the level of effectiveness of the 360 degree feedbacks.
2.4 Review Of Literature
Purpose
The literature review section examines the importance of search studies, company
data or industry reports that serve as a foundation for the setup of study. The research
dimension of the related literature and the relevant information begins from an explanatory
perspective, approaching towards specific studies which do related to the judge the
limitations and informational gaps in data from the secondary sources.
This analysis may reveal conclusions from past studies to realize the reliability of the
secondary sources and their credibility. This in turn enables one to rely on a comprehensive
review for the study.
Analysis of previous study

A survey about current practice, which is followed in companies to appraise
performance: ( Phatak, International Dimensions of Management)
Almost all software companies responding do have formal appraisal programs.

About 93% of smaller organizations (those with fewer than 500 employees) have such
programs. About 97% of large organizations have them.
Rating scales are by far the most widely used appraisal technique. About
62% of small organization use rating scales, 20% use essays, and about 19%
use MBO. Among the large organizations, 51% use rating scales, just over 23%
use essays and about 17% use MBO.
However, those using ratings as the main appraisal technique typically also
require narrative comments to justify rating and to describe employee strengths and
weakness and document development plans. Those using essays as the main appraisal
technique usually require an overall quantitative performance rating to facilitate

employee comparisons for compensation decisions.
The employee’s immediate supervisor makes Ninety two percent of appraisals.

These appraisals are in turn reviewed by the appraiser’s supervisor in 74% of the
responding organizations.Only about 7% of the organizations use self-appraisal in any
part of the overall appraisal process.Virtually all employees (99%) are informed of the
results of their appraisals. Overall about 77% are given a chance to respond with written
comments on their appraisals. In 69% of companies, appraisals are done annually.
Methods of reviewing the literature
The review of literature does scrutinize the important research studies. The primary
sources that provide relevant information are the best form to retrieve data from the research.
The primary sources were encouraged with the help of distribution of questioners as well as
conducting personal interviews. With this the data received enables the researcher to
accurately arrive at the problem of the study and the consecutively solutions to the same. The
secondary sources were also relied on for additional information. It includes company
journal, newsletters, records, manuals etc.
Conclusion
Performance management lays an evaluative and developmental dimension to its

makeup, and is crucial in both linking rewards to performance and providing a platform for
the development of employees. Over concentration on the assessment of performance can
work to the detriment of effort aimed at establishing the development needs of the individual
in an open and honest way. The manager, as an appraiser, may encounter difficulties in
reconciling the roles of 'judge' and 'mentor'. Managers need to develop the skills of coping
with such tensions in their roles. In some organizations, this problem is solved by having
different managers carrying out performance and development appraisals. Appraisal provides
the context in which mangers can seek to ensure that there is acceptable congruency between
the objectives of the individual and those of the organization.
Although one recognizes the part played by performance management in the

determination of rewards, we believe that if treated as a way of providing feedback on
progress and of jointly agreeing the next set of aims, the appraisal can have a positive effect
on individual motivation.
2.5 Operational Definition of Concepts
Performance Appraisal
Performance appraisal is the assessment of an individual's performance in an

performance in a systematic way, the performance being measured against such factors as
job knowledge, quality and quantity of output, initiative, leadership abilities, supervision,
dependability, co-operation, judgment, versatility etc. assessment should not be confined to
the past performance alone. Potentials of the employee for the future performance must also
be assessed.
Performance appraisal can be defined as "the systematic evaluation of the individual

with respect to his or her performance on the job and his or her potential for development".
A more comprehensive definition is, “Performance appraisal is a formal structured

system of measuring and evaluating an employee's job and how the employee can perform
effectively in future so that the employee, organization all be benefited."
Performance appraisal, to common understanding, is the formal and informal

assessment of the performance of the employee at work. In an informal system we are aware
that superior is continually making judgments about their subordinates' performance on a
subjective basis. By contrast, superiors could resort to using formalized appraisal techniques
when assessing the performance of subordinate, and these judgments arc considered to be
more objective. In formalized systems the terms 'performance appraisal and 'performance
management' are used. Both refer to a process where by mangers and their subordinates share
understanding about what has to be accomplished, and the manager will naturally be
concerned about how best bring about those accomplishments by adept management and
development of people in short and long terms. Also, performance would be measured using
the techniques discussed in this chapter and it will be subsequently related to targets or plans.
In this way the subordinate receives feedback on his or her progress.
A distinguished feature of performance management is its integrating strength in aligning

various processes with corporate objectives: for example, the introduction of performance-
related payment system and mobilization for training and development resources to achieve
corporate objectives.
Measuring Performance
In many organizations, the feedback on job performance is ambiguous or is given

annually as a ritualistic exercise. Many subordinates therefore have trouble in gasping how
their efforts are perceived by the organization. Almost every one who has worked at a job
can remember times when they were unclear on how their performance was being judged.
The annual performance appraisal system tends to serve only a little purpose: salary
administration, training and succession planning. But this is not the sole objective of
performance appraisal. These objectives will only dilute and weaken the clarity and validity
of any appraisal system. Most organization ties the formal appraisal system directly to salary
increase, which decrease their validity.
It is therefore very important for organizations to:
(a) Link Salary and Status Realistically to the Performance Appraisals
Most personnel departments have a very narrow outlook to appraisals. The general
view is to receive the appraisal forms at a date (which usually is the deadline), issue
instructions regarding increments and promotions, receive the data regarding the same and
they issue letters to the concerned employee informing of their salary increase. The appraisal
process gets polluted as the appraiser and appraise have at the back of their minds promotion
and salary increase, rather than performance plans and participative reviews. This dilutes the
objectives of appraisal to great extent. In fact, if organizations create, a culture of continuous
feedback on the performance they would be making the appraisal system more relevant.
Several organizations have already started delinking performance appraisal from salary
increase.
(b) Making Objectives of Performance Appraisals Clear to All Employees
If performance appraisal should not directly be linked to salary increase the question
then arises, what should the objectives of performance appraisals be that could be
realistically achieved?
Some suggestions:
 To do joint goal setting, and link the goals to the organizational objectives
 To provide role clarity by defining Key Result areas for Accounting.
 To establish a level of performance in the current job and seek ways of improving
it.
 To identify potential for development and to support the total process of planning
 To increase communication between the appraiser and the appraise.
 To identify factors that facilitate performance and other factors that hinder
performance.
 To help the employees identify and recognize their own strengths and
weaknesses. To make them assess their own competencies and how the same can
be multiplied and improved.
 To generate data about the employee for various decisions like transfers, rewards,
job-rotation, etc.
(c) Focus on Developmental Appraisals
Managers should develop part ownership in the employee's future. Any good
appraisal system should focus on developmental appraisal. Developmental appraisal mean
that an organization needs to develop not just isolated performance appraisal tool/system, but
the total frame work for the individuals development, improvement in job and level of
competence and preparing employees for future jobs. Thus, appraisal of people, which is a
part of the total HRD system, lies to be linked to long-term development activity and carrier
planning.
Organizations have to show vision for the future. Vision, strategies and objectives
will give rise to individual objectives and performance standards. The immediate rewards
and recognition do not lead to enduring performance and upgrading of competence and
therefore are not real motivators. The appraisal as a tool not only gives the individual and the
organization the idea of where the individual stands in terms of his skills, competencies and
abilities, but also monitors the process of growth and development, together with the inputs
that are required to develop a high level of competence by individuals.
(d) Let Employees Appraise Their Own Performance
Subordinates need feedback more often on their performance. The best way to do it is
to let them appraise their own performance.
Self-appraisal would -
1) Motivate the employee to take more responsibility for his/her own performance.
2) Focus on the job behavior only.
3) Reduce ambiguity in performance and focus on change in job behavior.
When subordinates undertake self-appraisal, they analyze their job duties and how
key issues in a job they handle. Each individual may rate himself or herself.
Self-appraisal may focus on cost control, communication, planning, training, delegation and
decision-making. After self-appraisal, the subordinate discusses the ratings with his/her
direct report or superior to get a feed back on performance. Both then come to an agreement
in areas of convergence and draw a job improvement plan.
(e) Create a Climate for Open Appraisals in Organizations
In most organizations, the concept of open appraisal is misunderstood. Open

appraisal does nut mean that the appraisal ratings are shown by the subordinate, and his/her
signature is then obtained. What it does mean that both the appraiser and the appraise share
their views on performance with each other, identify the areas of improvement and work
towards it. One of the objectives of open communication between the appraiser and the
appraise is to bring them together to solve organizational problems and performance related
problems. The quality of ratings is likely to improve if there is shared understanding between
the appraiser and the appraise.
(f) Muscle Builds the Organization
In today's competitive world, raising performance goals is essential. This entails

analyzing the company's current situation, projecting the future, establishing higher
expectations, and selling the top management on the upgrading process and developing an
action plan.
Muscle builds the organization by

1) Enhancing your own performance
2) Accelerating the professional growth of the best performers
3) Not tolerating managerial performers. One cannot muscle build the organization,
unless marginal performers are replaced.
4) Developing multiple skills and competencies by worshiping success and
potential.
(g) Build Commitment in the Workplace
Change is an inevitable part of manager's job. As conditions change, individual

responsibilities are also expected to change. In commitment-based approach, the workplace,
jobs are designed to be broader than before, team accountability is as important as individual
accountability for performance. The performance expectations are high and emphasize
continuous important in the workplace.
Managers have to stop being my topic to performance appraisals. No personnel

professional in the 90's will be able to afford the luxury of myopia. We have to see our way
to the various changes in environment that are taking place and those changes that will
revolutionize our organization culture in the out coming years. We must help our
organization's triumphant progress through the 90s, by recognizing and rewarding
performance.
METHODS OR TECHNIQUES OF APPRAISAL

Broadly all the approaches to appraisal can be classified into:
a) Past Oriented Methods and
b) Future – Oriented Method
a) Past Oriented Methods

• Rating Scales
This is the simplest and most popular technique for appraising employee
performance. The typical rating scale system consists of several numerical scales,
each representing a job-related performance criterion such as dependability,
initiative, output, attendance, attitude, co-operation, and the like. Each scale
ranges from excellent to poor. The rater checks the appropriate performance level
on each criterion, and then computes the employee’s total numerical score. The
number of points scored may be linked to salary increases etc.
 Checklist
Under this method, a checklist of statements on the traits of the employee and his
or her job is prepared in two columns – viz., a ‘Yes’ column and a ‘No’ column. All
that the rater should do is to tick the ‘Yes’ column if the statement is positive and in
column ‘No’ if the answer is negative. After ticking off against each item, the rater
forwards the list to the HR department where the actual assessment of the employee
takes place. In other words, the rater only does the reporting, while actual evaluation
is done by the HR department. The HR department assigns certain points to each
‘Yes’ ticked. Depending on the number of ‘Yes’ the total score is arrived at. When
points are allotted to the checklist, the technique becomes a weighed checklist.
• Forced Choice Method

Here, there would be certain statements mentioned and the appraiser will
only have to select the appropriate statement that suits the appraise. This is called
as Forced Choice Method because here, the appraiser has no freedom at all. He
only has a few statements that he will have to select that suit the appraise. The list
is then forwarded to the HR Department who will do the assessment. There will
be points given to each of the individual statements.
 Forced Distribution Method

One of the errors in rating is leniency – clustering a large number of employees
around a high point on a rating scale. The forced distribution method seeks to
overcome the problem by compelling the rater to distribute the rates on all points on
the rating scale.
The method operates under an assumption that the employee performance level
conforms to a normal statistical distribution. Generally, it is assumed that employee
performance levels conform to a bell – shaped curve. For example, the following
distribution might be assumed to exist - excellent 10%, good 20%, average 40%
below average 20% and unsatisfactory 10%.
The major weakness of the forced distribution method lies in the assumption that
employee performance levels always conform to a normal (or some other)
distribution. In organizations that have done a good job of selecting and retaining
only the good performers, the use of forced distribution approach would be
unrealistic as well as possibly destructive to the employee morale. One merit of this
approach is that it seeks to eliminate the error of leniency. This technique is however
not acceptable by most of the rates and rates.
• Critical Incidents Method

This method of employee assessment has generated a lot of interest these
days. This approach focuses on certain critical behaviors of an employee that
make all the differences between effective and non-effective performance of a
job. Such incidents are recorded by the superiors as and when they occur.
One of the advantages of this method is that the evaluation is based on

actual job behavior. Further, the approach has descriptions in support of
particular ratings of an employee. Giving job – related feedback to the rate is also
easy. It reduces bias on the part of the raters. The method however has significant
limitations. These include:
a) Negative incidents tend to get noticed more than positive incidents.

b) Recording is a chore, so supervisor could easily forget.
c) Overly close supervision may result.
• Behaviorally Anchored Rating Scales (BARS)

Behaviorally anchored rating scales, sometimes called as Behavioral Expectation

Scales are rating scales whose scale points are determined by statements of effective
and ineffective behaviors. They are said to be behaviorally anchored in that the scales
represent a range of descriptive statements of behavior on each scale best described
and employee’s performance. Behaviorally anchored rating scales (BARS) have the
following features:
1. Areas of performance to be evaluated are identified and defined by the people

who will use the scales.
2. The scales are anchored by descriptions of actual job behavior that, supervisors
agree, represent specific levels of performance. The result is a set of rating scales
in which both dimensions and anchors are precisely defined.
3. All dimensions of performances to be evaluated are based on observable
behaviors and are relevant to the job being evaluated since BARS are tailor made
for the job.
4. Since the raters who will actually use the scales are actively involved in the
development process, they are more likely to be committed to the final product.
BARS were developed to provide results, which subordinates could use to

improve performance. Superiors would feel comfortable to give feedback to the
rates. Further BARS help to overcome rating errors. Unfortunately, this method too
suffers from distortions inherent in most rating techniques.
 Essay Method
Here, the rater must describe the employee within a number of broad categories
such as.
1. The raters overall impression of the employee’s performance.
2. The promotability of the employee
3. The jobs that the employee is now qualified or capable to perform
4. The strengths and weakness of the employee
5. The training and development assistance required by the employee.
Although, this method might be used individually, it is most frequently used in

combination with others. It is extremely useful in filing information gaps about the
employees that often occur in the better-structured checklist method.
 Cost Accounting Method

This method evaluates performance from the monetary returns the employee
yields to his or her organization. A relationship is established between the cost
included in keeping the employee and the benefit the organization derives from him
or her. Performance of the employee is then evaluated based on the established
relationship between the cost and the benefit.
b) Future Oriented Method

 Management by Objectives (MBO)
The concept of MBO conceived by Peter F. Drunker, reflects a management
philosophy which values and utilized employee contributions. Applications of MBO
in the field of performance appraisals are a recent thinking.
The working of MBO can be described in four steps:

The first step is to establish the goals each person is to attain. These goals can be
used to evaluate employee performance.
The second step involves setting the performance standard for the subordinates in
a previously arranged time period. As subordinates perform, they know fairly well
what there is to do, what has been done and what remains to be done.
The third step, the actual level of goal attainment is compared with the goals
agreed upon. The evaluator explores reasons for the goals that were not met and for
the goals that were exceeded. This step helps determine possible training needs. It
also alerts the superior to conditions in the organization that may affect a subordinate
but over which the subordinate has no control.
The final step involves establishing new goals and possibly, new strategies for
goals not previously attained.
 Psychological Appraisals
Large organizations employ full time industrial psychologists. When
psychologists are used for evaluations, they assess an individual’s future potential
and not past performance. The appraisal normally consists of in-depth interviews,
psychological tests, discussions with superiors and a review of other evaluations. The
psychologist then writes an evaluation of the employee’s intellectual, emotional,
motivational and other related characteristics that suggest individual potential and my
predict future performance. The evaluation by the psychologist may be for a specific
job opening for which the person is being considered, or it may be a global
assessment for his or her future potential. From these evaluations, placement and
development decisions may be made to shape the person’s career.
 360 Degree Appraisal

This is a technique of appraisals wherein multiple rates are involved in evaluating
performance. This is understood as a systematic collection of performance data on an
individual or group, derived from a number of stakeholders – the stakeholders being
the immediate supervisors, team members, customers, peers and self. In fact, anyone
who has any information on ‘how an employee does the job’ may be one of the
appraisers. This provides a broader perspective about an employee’s performance. In
addition, the technique provides for greater self-development of the employees. For
an employees development multi-source feedback is very useful as it enables the
employee to compare his or her perceptions of self with the perceptions of others.
360-DEGREE FEEDBACK DEFINED
360° feedback is a relatively new feature of performance management. 360°

feedback has been defined by Ward (1995) as: The systematic collection and feedback of
performance data on an individual or group derived from a number of stakeholders on
their performance.
The data is usually fed back in the form of ratings against various performance
dimensions. 360° feedback is also referred to as multi-source assessment or multi-rater
feedback.
360-DEGREE FEEDBACK – METHODOLOGY
1. The Questionnaire
360° feedback processes usually obtain data from questionnaires, which measure
from different perspectives the behaviors of individuals against a list of competencies.
The competence model may be developed within the organization or the competency
headings may be provided by the supplier of the questionnaire. The dimensions may
broadly refer to leadership, management and approaches to work.
2. Ratings
Ratings are given by the generators of the feedback on a scale against each
heading. This may refer both to importance and performance, as in the questionnaire,
which asks those completing it to rate the importance of each item on a scale of 1 (not
important) to 6 (essential) and performance on a scale of 1 (weak in this area) to 6
(outstanding).
3. Data Processing
Questionnaires are normally processed with the help of software developed
within the organization or, most commonly, provided by external suppliers. This enables
the data collection and analysis to be completed swiftly, with the minimum of effort and
in a way that facilitates graphical as well as numerical presentation.
4. Feedback
The feedback is often anonymous and may be presented to the individual (most
commonly) to the individual’s manager (less common) or to both the individual and the
manager. Some organizations do not arrange for feedback to be anonymous. Whether or
not feedback is anonymous depends on the organization’s culture – the more open the
culture, the more likely is the source of feedback to be revealed.
5. Action
The action generated by the feedback will depend on the purposes of the process,
i.e. development, appraisal or pay. If the purpose is primarily developmental, the action
may be left to individuals as part of their personal development plans, but the planning
process may be shared between individuals and their managers if they both have access
to the information. Even if the data only goes to the individual, it can be discussed in a
performance review meeting so that joint plans can be made, and there is much to be said
for adopting this approach.
360-Degree Feedback – Advantages and Disadvantages
 Individuals get a broader perspective of how they are perceived by others than
previously possible.
 Increased awareness of and relevance of competencies
 Increased awareness by senior management that they too have development
needs.
 More reliable feedback to senior managers about their performance.
 Gaining acceptance of the principle of multiple stakeholders as a measure of
performance.
 Encouraging more open feedback – new insights.
 Reinforcing the desired competencies of the business.
 Provided a clearer picture to senior management of individual’s real worth
(although there tended to be some ‘halo’ – effect syndromes).
 Clarified to employee’s critical performance aspects.
 Opens up feedback and gives people a more rounded view of performance than
they had previously.
 Identifying key development areas for the individual, a department and the
organization as a whole.
 Identify strengths that can be used to the best advantage of the business.
 A rounded view of an individuals / teams / the organization performance and
what its strength and weakness are
 It has raised the self awareness of people managers of how they personally
impact upon others – positively and negatively
 It is supporting a climate of continuous improvement
 It is starting to improve the climate / morale, as measured through out employee
opinion survey
 Focused agenda for development. Forced line managers to discuss development
issues.
 Perception of feedback as more valid and objective, leading to acceptance of
results and actions required.
But there may be problems. These include:

 People not giving frank honest feedback;

 People being put under stress in receiving or giving feedback;
 Lack of action following feedback;
 Over-reliance on technology
 Too much bureaucracy
These can all be minimized if not avoided completely by careful design, communication,
training and follow-up.
360-DEGREE FEEDBACK – CRITERIA FOR SUCCESS
360-Degree is most likely to be successful when;

 It has the active support of top management who themselves take part in giving
and receiving feedback and encourage everyone else to do the same.
 There is commitment everywhere else to the process based on briefing, training,
and an understanding of the benefits to individuals as well as the organization.
 There is a real determination by all concerned to use feedback data as the basis
for development.
 Questionnaire items fit or reflect typical and significant aspects of behavior.
 Items covered in the questionnaire can be related to actual events experienced by
the individual.
 Comprehensive and well-delivered communication and training programs are
followed.
APPRAISAL ERRORS
None of the methods for appraising performance is absolutely valid or reliable;
each method has its own strengths and weakness. Let us try to understand the most
commonly occurring errors within performance appraisal methods.
1. Error of Central Tendency:

This refers to the tendency of not using extreme scale scores on the judgment
scale; most of the rates are clustered in the middle.
2. Error of Leniency:
This is caused by the tendency of the lenient rater to put most of the rates on the
higher side of the scale, while a tough rater places them on the lower side of the scale.
3. Halo Effect:
In other words, it is tendency to allow the assessment on one trait to influence
assessment on others. This usually arises when traits are unfamiliar, ill – defined and
involved personal reactions.
4. Error in Unreliability:
This error occurs when there is the existence of inconsistency in the evaluations
of a group of employees by two / more appraisers.
5. Personal Bias:
This error occurs when there exists a close relationship between the appraiser and
the appraise. This tends to influence the evaluation. The scores could be on the higher
when there would be a bias on the side of the appraiser. Therefore, the scores given
could tend to be higher then what the appraise deserves. This would give the appraise an
undue advantage for the appraise during the times of promotions, pay rise etc. the same
could happen vice versa too if an appraiser does not share a good relationship with the
appraise, he could tend to give absolutely low scores for the appraise.
5. No Consultation
There would tend to be an error in the scores if the appraiser just goes on giving
scores without discussing with the appraise. If the appraise would not be given his say in
the matter, the score will not reflect the actual capability of the appraise.
6. Spill over Effect

This refers to allowing past performance appraisal ratings to unjustifiably
influence current ratings.
7. Status Effect:
It refers to over rating of employed in higher level job or jobs held in high
esteem, and under rating employees in lower level job at job held in low esteem.
2.6 Research methodology
Type of Research
The research design comprise of the plan and structure of investigation conceived so
as to arrive at the responses to the research queries. It there by addresses the aims and
objectives of the study, both descriptively and analytically.
Sampling Technique
The sampling technique adopted for the study is non-probability Random sampling
technique according to the convenience of the researcher.
A questionnaire was administered to HR managers / executives of different software
companies to obtain data for the purpose of analysis.
Sample Size
Data is collected using a sample of 30 software companies.
Sample Description
The sample mainly consists of data from the primary sources that are utilized for the
purpose of this study. This is done by means of administrating questioners to human resource
managers / executives in different software companies in the city of Bangalore. Secondary
data like company journals, newsletters, records etc. were also relied on for retrieving further
information.
Instrumentation Technique
Questionnaire and structure disguised questions.
Actual Collection of Data

Both secondary and primary sources of data are utilized for the purpose of this study.
Primary data is collected by means of administering a questionnaire to the Human Resource
Managers / Executives in different software companies. Secondary data is collected from
various records, manuals and other sources of the HR Department.
Tools used for testing of hypothesis

In attempting to arrive at a decision about the population on the basis of the sample
information it is necessary to make assumptions or guesses about the population parameters
involved such an assumption is called statistical hypothesis, which may or may not be true or
not is called test of hypothesis or test of significance. In the test of hypothesis it begins with
an assumption or hypothesis is called Null Hypothesis.
The null hypothesis asserts that there are no significant differences between the
statistics and the population parameters and whatever observes difference is there merely due
to fluctuations in sampling from the sample population. Null hypothesis is usually denoted
by the symbol, Ho. Any hypothesis that contradicts the Ho (null hypothesis) is called an
alternative hypothesis and is denoted by symbol H1. The technique used to test the
hypothesis is Test for proportion.
Test for Proportion

Suppose the population of an attribute in a population is now known, we want to test
whether the proportion is a given value P. The null hypothesis is Ho : p = P. The alternative
hypothesis is H1: p ≠ P.
The large random sample of size n from the population, let x units possess the
attribute. Then the sample proportion is p = x/n.
p-P
And so, Z =
√ PQ
n
Therefore, the test statistics is | Z | = P = assumed level of effectiveness
Q = 1-P
p = level of effectiveness of sample
n = sample size
For the sample, if | Z | cal > k, Ho is rejected .On the other hand, if | Z | cal < Ho is accepted.
Other Software used for the data analysis
For the data analysis, and the subsequent interpretation the researcher has adopted
advanced version of MS-EXCEL 2000. This application software has facilitated the
researcher to construct the frequency table, various kinds of graphs and to find out the
average responses from the sample. By this automated data analysis it has minimized the
researcher’s time constraint and reduced human errors and also accurate outlay of
information.
PROFILE OF SOFTWARE INDUSTRY
SOFTWARE INDUSTRY
3.1 Indian IT - ITES Industry:
The Indian IT-ITES industry is broadly categorized into IT services and software,
ITES-BPO and Hardware segments.
The industry continues to chart remarkable double-digit growth, with industry

aggregate revenue for 2005-06 expected to reach US$ 28 billion. The industry is forecast to
grow more than fivefold over FY 1999-06, at a CAGR of 28 percent.
3.2 Industry Trends (2004-05)
 The earnings from IT-ITES exports was US$ 13.3 billion (61.9 percent of total
industry revenues) in 2004-05 and is expected to touch US$ 17.9 billion (63.7
percent) in 2005-06. Key drivers of growth include the growing adoption of IT
outsourcing and the rapid expansion in the scale and breadth of ITES-BPO offerings
by Indian vendors.
o During 2005-06, software and services, and ITES-BPO would continue to
remain the key contributors to India’s IT-ITES export revenues, with a share
of 67.8 percent and 28.4 percent, respectively. While contribution of hardware
exports would be around 3.7 percent, the situation is expected to change in the
medium term, with this segment receiving a boost owing to market
conditions.
o Overall pricing levels in IT services stabilized at US$ 55-60 per hour for
onsite services and between US$ 18-24 per hour for offshore services.
o Indian IT-ITES vendors successfully executed the offshore delivery model to
achieve sustained growth in service exports and established India as the most
preferred offshore destination for global sourcing of services.
 Indian IT-ITES vendors successfully executed the offshore delivery model to achieve
sustained growth in service exports and established India as the most preferred
offshore destination for global sourcing of services.
 The domestic IT-ITES market witnessed a revival during 2004-05, with revenues
reaching US$ 8.2 billion (a growth of 30 percent over previous year). The segment is
expected to touch revenues of around US$ 10.2 billion during 2004-05, at a CAGR of
19.2 percent for the 2004-05 periods. Hardware and IT services accounted for around
90 percent of the domestic IT-ITES revenues during 2004-05 and this market share is
not likely to change in 2004-05.
o The BFSI (Banking, Financial services, Insurance), Government and telecom
segments remained the key revenue drivers for the domestic IT-ITES market.
 Two more companies within the IT-ITES domain joined the billion-dollar club,
which now includes the HCL Group, Infosys, TCS and Wipro.
 During 2004-05, the Indian IT software and services segment added 98,000 jobs and
the ITES-BPO sector added about 73,500 jobs. A total of 203,5000 new jobs are likely to be
created by the IT-ITES sector in the current fiscal.
 Indian IT-ITES vendors focused on improving productivity and utilization and
moved up the value chain. While IT service companies included new service lines such as
package software implementation, systems integration, R&D engineering and remote
network management to their portfolio of offerings, ITES-BPO companies began more
complex services such as financial research and analytics, actuarial modeling, corporate and
business research.
The Indian IT-ITES players expanded their focus from the Fortune 500 companies to
address the needs of Global 2000 corporations.
Bangalore - The "Technopolis" of India
A large part of India's success in the software sector is due to the crucial role played
by the State of Karnataka in promoting and providing a boost to IT. Karnataka has emerged
as the computer capital and center of high-tech industries, especially software. Bangalore has
for long been known as India's answer to Silicon Valley, and this is the city where most large
software companies have set up shop and operate out of state-of-the-art facilities. This is the
reason why it is fast becoming the "Technopolis" of India. The Government of Karnataka has
also been extremely positive about the software and services marketplace and has helped
create the relevant telecom and policy infrastructure conducive to the growth of this sector.
The dynamic industrial policy declared in 1996, with comprehensive packages of incentives
and concessions, has ensured a productive ground for various industries. The hardware and
software industries have now brought about a revolution of sorts under these schemes.
Various institutions and computer training centers have contributed to the large number of
trained and talented professionals.
The City of Bangalore has positioned itself to help market the software industry. This
is also why Bangalore has been playing host to international-class conferences, workshops
and exhibitions devoted to the software cause. The city has the highest number of
engineering colleges in the world, almost 50 percent of the world's SEI CMM Level 5
companies; COPC/ISO recognized Customer Interaction Centers, and over 103 R&D
Institutions. It is, in fact, home to GE's biggest R&D Center outside the U.S.-the Jack Welch
Technology Center, which hires over 200 PhDs/scientists every month! To top it all,
Bangalore has just been ranked the fourth best "Global hub of technological innovation" by
none other than the United Nations.
Bangalore's strengths in the software market also lie in its pursuit of new
opportunities. In fact, two key segments that are expected to open up over the next few years
for India are e-commerce and remote processing. Opportunities in e-commerce software
solutions are emerging as a major area of growth in the Indian IT software and services
industry. A recent study undertaken by The Boston Consulting Group for NASSCOM clearly
stated that India could earn revenues of US$9 billion from e-business solutions by 2005.
.
Various Approaches Of Performance Appraisal
The data was processed after collection and analyzed for the purpose. The data was
edited, classified and tabulated for analysis.
Analysis of data was done with the purpose of summarizing the collected data and
organizing these in such a manner that they answer the research questions. Percentage
analysis was used for analysis of data and the results have been presented by way of pie
charts, bar charts, with the help of SPSS package.
After analysis, the phase of interpretation starts. This is done by drawing inferences
from analyzed data. After interpretations, a report was prepared on the basis of inferences.
Table 4.1 Distribution of companies according to the total no of Employees
Total no of employees Frequency Percent Cumulative Percent

Upto 100 9 30.0 30.0
100 – 1000 16 53.3 83.3
Above 1000 5 16.7 100.0
Total 30 100.0
Source – Primary Data

Interpretation:
The above table indicates that 9 companies were selected who employed 100 and
below employees. 16 companies employed between 100 and 1000 employees and only 5
companies were selected who employed above 1000 employees.
Graph 4.1Indicates the total number of employees in the organization
Total no.of employees
Above 1000
Upto 100
100 - 1000
Table 4.2 Type of Appraisal System
Frequency Percent Cumulative Percent

Type of Appraisal System
Manager, Supervisor,Appraisers 11 36.7 36.7
Self appraisal 6 20.0 56.7
open system 4 13.3 70.0
MBO 3 10.0 80.0
36Feed Back 2 6.7 86.7
5 Point Scale 1 3.3 90.0
3.point Scale 1 3.3 93.3
4.Point scale 1 3.3 96.7
10 Point scale 1 3.3 100.0
Total 30 100.0
Interpretation
The above table indicates that 36.7% of the companies are appraised by the
managers/supervisors/appraiser assessment, 20% of the companies emphasis on self
assessment, in addition to this few companies follow Open System (13.3%), MBO (10%),
360 feed back (6.67%), 5 point scale (3.3%), 3 point scale (3.3%), 4 point scale (3.33%) and
10 point scale (3.33%).
Graph 4.2 Indicates the type of appraisal system adopted by the software companies
Type of Appraisal System
10 Point scale
4.Point scale
3.point Scale
5 Point Scale
36Feed Back
Manager,Supervisor,A
MBO
open system
Self appraisal
Table 4.3 Frequency of Appraisal

Period Frequency Percent Cumulative Percent

Quarterly 14 46.7 46.7
Half 6 20.0 66.7
Yearly
Annually 4 13.3 80.0
Others 6 20.0 100.0
Total 30 100.0

Interpretation
From the above table most of the companies follow the annual system of appraisal (46.7%).
Half yearly appraisal is carried out in 20% of the companies. 13.3% follow quarterly system
of appraisal. Some companies follow the combination of half yearly and annual system
(16.7%). Only 3.33% of the companies followed half yearly + quarterly + annual system of
appraisal.
Graph 4.3Indicates how often appraisals are carried out by the companies
Frequency of Appraisal
Others
Quarterly
Annually
Half Yearly
Table 4.4 Criteria used for evaluation
Criteria Frequency Percent Cumulative Percent

Performance 12 40.0 40.0
customer Focus 6 20.0 60.0

Technical Competence 4 13.3 73.3
Attendance 3 10.0 83.3
Target Vs. Achievement 2 6.7 90.0
Key Result Areas 1 3.3 93.3
Quality of Output 1 3.3 96.7
3 Point Scheme 1 3.3 100.0
Total 30 100.0
Interpretation
The above table indicates the criteria used in evaluating the employees. 40% of the
companies evaluate their employee with the performance, 20% by the technical competence,
13.33% by the target v/s achievement, 13.33% by quality of output, 6.67 by customer focus,
3.33% on attendance, 3.33% by the key result area and 3.33% by the 3 point scale.
Graph 4.4
Criteria used for evaluation

3 Point Scheme
Quality of Output
Key Result Areas
Target Vs. Achieveme
Performance
Attandence
Technical Competence
customer Focus
Table 4.5 Rating System used by S / W Companies
Rating Frequency Percent Cumulative Percent

system
Scoring 9 30.0 30.0
Comments 6 20.0 50.0
Both 15 50.0 100.0
Total 30 100.0

Interpretation
The above table indicates that 30% of the companies use scoring as the rating scale, 20% on
comments and 50% of the companies use both scoring and comments as rating scale.
Graph 4.5 Rating scale used in software companies
Rating System used by S/W Companies
Scoring
Both
Comments
Table 4.6 Percentage if scoring is the Rating Scale
Scoring Frequency Percent Cumulative Percent

Alpha 7 23.3 29.2
Numeric 14 46.7 87.5
Both 3 10.0 100.0
Total 24 80.0
System 6 20.0
30 100.0

Interpretation
From the above table the companies, which follow scoring as rating scale use 23.3% alpha,
46.7% numeric and 10% both alpha and numeric.
Graph 4.6 if scoring is the rating scale
Percentage if scoring is the Rating Scale

Missing
Alpha
Both
Numeric
Table 4.7 Feedback to employees after Appraisal
Feedback Frequency Percent Cumulative Percent

Yes 26 86.7 86.7
No 4 13.3 100.0
Total 30 100.0
Interpretation
The above table indicates that 86.67% of the employees appraised received feedback and
13.33% employees did not receive feedback.
Graph 4.7 whether the person being appraised obtain feedback
Feedback to employees after Appraisal
No
Yes
Table 4.8 Percentage of Feedback given to Employees

Written 9 30.0 30.0
Oral 7 23.3 53.3
Detailed 5 16.7 70.0
Summarized 3 10.0 80.0
Self-Assessed 3 10.0 90.0
Manger Assessed 3 10.0 100.0
Total 30 100.0
Interpretation
The above table indicates how feedback is given to the employees. Most companies follow a
written feedback with 30.00%, oral being 10%, manager assessed 10%, self assessed
16.67%, detailed 23.33% and summarized being 10%. Almost all the companies that were
sampled followed a combination of more than one type of feedback.
Graph 4.8How feedback is given to the employees
% of feedback given to Employees
Manger Assessed
Self-Assessed Written
Summarized
Detailed
Oral
Table 4.9 Percentage of Positive or Negative Feedback

Yes 26 86.7 86.7
No 4 13.3 100.0
Total 30 100.0

Interpretation
The above table indicates that 86.67% companies follow the sharing of feedback both
positive and negative in the same meeting while 13.33% said no. adverse was communicated
in writing and good performance is already known.
Graph 4.9 whether the negative and positive feedback is shared with the appraise in the same
meeting.
% of Positive & Negative feedback
No
Yes
Table 4.10 Self-Assessment
Self- Assessment Frequency Percent Cumulative Percent

Yes 21 70.0 70.0
No 9 30.0 100.0
Total 30 100.0

Interpretation
The above table indicates that 70% of the companies follow self assessment of an employee
while 30% did not follow.
Graph 4.10 whether the self-assessment of employee is followed in the company or not.
Self-Assessment
No
Yes
Table 4.11 Percentage of Company following Self-Assessment.
Self- Assessment Frequency Percent Cumulative Percent

Yes 18 60.0 85.7
No 3 10.0 100.0
Total 21 70.0
System 9 30.0
30 100.0

Interpretation
The above table states the integration of the self-assessment of an employee in the existing
appraisal system, 85.71% said yes and 14.29% said no.
Graph 4.11 If the company follows a self-assessment of an employee, is it integrated in

the appraisal system followed?
% of company following Self-Assessment
Missing
Yes
No
Table 4.12 Percentage of Compensation increase
Compensation Frequency Percent Cumulative Percent

Yes 25 83.3 83.3
No 5 16.7 100.0
Total 30 100.0
Interpretation
The above table indicates that 83.33% of the companies agreeing that appraisal are related to
compensation increase and 16.67% did not agree.
Graph 4.12 Relation of performance appraisal in compensation increase
Percentage of Compensation increase
No
Yes
Table 4.13 Compensation increased and Appraisers set targets

Compensation Frequency Percent Cumulative Percent

Yes 22 73.3 73.3
No 8 26.7 100.0
Total 30 100.0

Interpretation
The above table indicates that 73.33% of the respondents agreeing to setting targets to
employees being appraised while 26.67% said no.
Graph 4.13 The sets target for an employee being appraised
Appraiser's set targets.
No
Yes
Table 4.14 Distribution of set target
Distribution Frequency Percent Cumulative Percent

3 Months 2 6.7 9.1
3 - 6 Months 2 6.7 18.2

6 Months 4 13.3 36.4
12 Months 14 46.7 100.0
Total 22 73.3
System 8 26.7
30 100.0
Interpretation
From the above table, half (15) of the companies, the appraiser sets targets for an
employee being appraised for a period of 12 months (50%), in other companies the
targets are set for 6 months (20%), 3-6 (20%) and 3 months (10%).
Graph 4.14 If the appraiser sets targets, for what period the targets are set.
Distribution of set target
Missing 3 Months
3 - 6 Months
6 Months
12 Months
Table 4.15 Usage of checklists in Appraisals
Check List Frequency Percent Cumulative Percent

Yes 23 76.7 76.7
No 7 23.3 100.0
Total 30 100.0
Interpretation
The above table indicates that 76.67% of the companies (23) have a checklist for
carrying out appraisals while 23.33% said no. Some companies have a performance
appraisal handbook, which gives the details. One of the companies has an IT Tool as
checklist.
Graph 4.15 Do the companies have a checklist for carrying out appraisal
Usage of checklists in Appraisals
No
Yes
Table 4.16 Is Career Planning effective
Career Planning Frequency Percent Cumulative Percent

Yes 19 63.3 63.3
No 11 36.7 100.0
Total 30 100.0
Interpretation
The above table indicates that out of 30 companies 19 companies feel that career
planning place an important role in Performance Appraisal (63.33%) and rest of the 11
companies do not agree with this (36.36%).
Graph 4.16 Effectiveness of 360 degree appraisals.
Is Career Planning effective
No
Yes
Table 4.17 Effectiveness of 360 degree appraisal

Parameters Frequency Percent Cumulative Percent
Less than 20% 1 3.3 3.3
20% - 35% 3 10.0 13.3
35% - 50% 5 16.7 30.0
Above 50% 21 70.0 100.0
Total 30 100.0
Interpretation
From the above table, it is understood that when 360° score is implemented as a form of
appraisal so as to realize its effectiveness in a firm, almost above 50% opts it to be very
effective, with a score of 70% while 35-50% and 20%-35% votes its effectiveness up to
a level of 16.67% and 10% respectively and less than 20% declares it least effective, i.e.
3.33%.
0
Graph 4.17 The level of effectiveness of 360 score when implemented as a
form of appraisal.
Effectiveness of 360 degree appraisal
Less than 20%

20% - 35%
35% - 50%
Above 50%
Table 4.18 Distribution Of Companies according to the total no. of

employees
Companies Distribution of Companies according to the total no of Employees

Per. Cus. Tech. Atten. Tar. KRA’s Quality 3Point Total
Focus Competence Vs. Of Scheme
Acheiv. Output
Small 9 9
(100) (100)
Medium 3 6 4 3 16
(18.8) (37.5) (25) (18.8) (100)
Large 2 1 1 1 5
(40) (20) (20) (20) (100)

Total 12 6 4 3 2 1 1 1 30
40% 20% 13.3% 10% 6.7% 3.3% 3.3% 3.3% 100%

Note: Figures in brackets indicates percentage to total.

Interpretation
From the above table it can be inferred that the criteria used to evaluate an employee for a
Small Company is performance (100%) but for a Medium Company it is
performance(18.8%),customer focus(37.5%), technical competence(25%) and
attendance(18.8%). And finally for a Large Company the criteria include target Vs.
achievement(40%),Key Result Areas(20%), quality of output(20%) and 3Point scheme(20%)
Table 4.19 Type of Appraisal System adopted and the frequency of

Appraisal
Appraisal Frequency
Quarterly Half Annually Others Total
Yearly
Manager 11 11
Supervisor
Appraiser (100) (100)
Self-Appraisal 3 3 6
(50) (50) (100)

Open 3 1 4
System
(75) (75) (100)
MBO 3 3
(100) (100)
360 Feedback 2 2
(100) (100)
5Point 1 1
Scale
(100) (100)
3Point Scale 1 1
(100) (100)
4point 1 1
Scale
(100)
(100)
Total 14 6 4 5 30
(46.7) (20) (13.3) (16.7) (100)


Interpretation
This table indicates that the Organization carries out appraisals for Quarterly-
Managers/Supervisors/Appraisers, Self-Appraisal- Quarterly as well as Half-yearly(50%).
Open system which is carried out half-yearly and annually. Where as 360Degree feedback,
5Point Scale, 3Point Scale, 4Point Scale follow other Appraisal System
Table 4.20 Adoption of Performance Appraisal and percentage of

Feedback given to employees.
Feedback
Companies Written Oral Detailed Summarized Self- Manager Total
Assessed assessed
9 9
Small
(100)
(100)
Medium 7 5 3 1 16
(43.8) (31.3) (18.8) (6.3) (100)

Large 2 3 5
(40) (60) (100)

9 7 5 3 3 3 30
Total
(30) (23.3) (16.7) (10) (10) (10)
(100
Interpretation
This table indicates how feedback is obtained from the employee, ie., Oral(23.3%),
Written(30%), Detailed(16.7%), Summarized(10%), Self-Assessed(10%), Manager
Assessed(10%) which holds good for Small, Medium and Large Companies.
Table 4.21 Performance Appraisal System and the effectiveness of

360Degree feedback
Effectiveness of 360Degree Appraisal Total

Less Than 20%-35% 35%-50% Above 50%
Appraisal 20%
1 3 5 21 30
(3.3) (10) (16.67) (70) (100)

Total 1 3 5 21 30
(3.3) (10) (16.7) (70) (100)

Interpretation
This table shows how effective and feasible the 360Degree Appraisal format applies to the
Companies broken up into segments of : less than 20%, in between 20%-35%, 35%-50%,
Above 50%
Table 4.22 The level of effectiveness of 3600 appraisals
Effectiveness Percentage Of Company No. of Company

Less than 20% 3.33% 1
20%-35% 10% 3
35%-50% 16.67% 5
50% and Above 70% 21
TOTAL 100% 30
Source: Primary Data
0
Ho: The Level of effectiveness of 360 appraisals is less than 50%
0
H1: The level of effectiveness of 360 appraisals is more than or equal to
50% Level of Significance, 0.05
Z=
p-P
PQ
√ n
p= X /N = 21 / 30
0
X= number of respondents saying the effectiveness of 360 appraisals is more than or equal
to 50%
n = total number of respondents ie; 30
P = assumed level of effectiveness i.e.,
0.50 Q = 1-P
Q = 1 - 0 .50 = 0.50
Z = 0.7 – 0.5 √
0.5 * 0.5
30
Z = 2.191
Calculated Value |Z| cal: 2.191
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PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION

Project Guide Submitted

Project Synopsis checklist

1. TITLE OF THE PROJECT...............................................................................3

1. TITLE OF THE PROJECT

A STUDY ON DIFFERENT APPROACHES OF PERFORMANCE APPRAISALS

Performance appraisal is an important HRD mechanism. It is the process of

The criteria or measures to evaluate an employee in most of the companies are

3. STATEMENT ABOUT THE PROBLEM

The research intends to study the different approaches of appraisals adopted by

3.1 NEED AND IMPORTANCE OF THE STUDY

This study is conducted with respect to understanding the different appraisal

3.2 OBJECTIVES OF THE RESEARCH

1. To find out the different appraisal systems followed by software companies.

3.3 REVIEW OF LITERATURE

The literature review section examines the importance of search studies,

ANALYSIS OF PREVIOUS STUDY

A survey about current practice, which is followed in companies to appraise

METHODS OF REVIEWING THE LITERATURE

Performance management lays an evaluative and developmental dimension to its

Questionnaire and structure disguised questions.

ACTUAL COLLECTION OF DATA

TOOLS USED FOR TESTING OF HYPOTHESIS

TEST FOR PROPORTION

OTHER SOFTWARE USED FOR THE DATA ANALYSIS

HOW YOU FEEL ABOUT YOUR JOB?

1. Strongly Disagree (SD)

5. Strongly Agree (SA)

SECTION I (Personal Details):

2. Experience in the present organization: ___________

SECTION II (Job Itself):

3. My performance on the task determines or influences 1 2 3 4 5

I feel that the task(s) I perform need independent

5. The organization believes in multi-skilling. 1 2 3 4 5

I am given an opportunity to develop my skills further

8. There is flexibility and freedom in the job that I do. 1 2 3 4 5

10. Most days I am enthusiastic about my work. 1 2 3 4 5

SECTION III (Job Advancement/ Scope For Advancement):

GROWTH PROSPECTS / PROMOTIONS

11. I feel I can personally develop or grow in my job. 1 2 3 4 5

12. Promotions decisions are taken objectively. 1 2 3 4 5

13. The company has satisfactory promotion policy. 1 2 3 4 5

Good performance is also considered in promotion

SECTION IV (Management Responsiveness):

A. RECOGNITION AND APPRECIATION

15. I feel that my efforts are valued in the company. 1 2 3 4 5

I will be recognized and appreciated when I will go

C. MONETARY BENEITS (Pay, Perk, Benefits, Compensation)

18. There is a significant component in my compensation 1 2 3 4 5

All incentive schemes are transparent. Linkages of

Compared with people in similar jobs in other

21. I personally feel that monetary rewards alone are not 1 2 3 4 5

E. PARTICIPATION / PARTICIPATIVE MANAGEMENT

24. I can express frankly my feelings and reactions in the 1 2 3 4 5

I personally feel that my subordinates have to be

G. TRAINING AND LEARNING

It is my company’s express policy to proactively train

29. I am kept informed on what goes on here. 1 2 3 4 5

30. I am satisfied with the communication and the way 1 2 3 4 5

31. Mainly excellence in performance and getting tasks 1 2 3 4 5

Knowledge and expertise are recognized and

SECTION V (Working Groups & Culture):

1. Supervision (Quality of supervision, support from supervisors, supervisory

2. Relationship with co-workers