CHAPTER- I

Introduction about the topic Industry profile Company profile Objective of the study Need of the study Scope of the study Limitation of the study

1.1 INTRODUCTION According to Flippo, a prominent personality in the field of Human resources, "performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job." MEANING Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. The performance appraisal process is a process that evaluates employee performance. Normally it compares quality, quantity, cost, and time. Some of the things that performance appraisal are used to do would be.

Give something tangible to the employee regarding their work performance. Shows what training employees need. Determines what the employees raise might be.

PERFORMANCE APPRAISAL PROCESS

Establishing performance standards Communicate standards and expectations Set up a system that measures actual performance Compare employee with the standards implemented Discuss results with employee Make a decision on what you are going to do, or take corrective action.

1.2 INDUSTRY PROFILE

The power sector has registered significant progress since the process of planned development of the economy began in 1950. Hydro -power and coal based thermal power have been the main sources of generating electricity. Nuclear power development is at slower pace, which was introduced, in late sixties. The concept of operating power systems on a regional basis crossing the political boundaries of states was introduced in the early sixties. In spite of the overall development that has taken place, the power supply industry has been under constant pressure to bridge the gap between supply and demand. GROWTH OF INDIAN POWER SECTOR Power development is the key to the economic development. The power Sector has been receiving adequate priority ever since the process of planned development began in 1950. The Power Sector has been getting 18-20% of the total Public Sector outlay in initial plan periods. Remarkable growth and progress have led to extensive use of electricity in all the sectors of economy in the successive five years plans. Over the years (since 1950) the installed capacity of Power Plants (Utilities) has increased to 89090 MW (31.3.98) from meagre 1713 MW in 1950, registering a 52d fold increase in 48 years. Similarly, the electricity generation increased from about 5.1 billion units to 420 Billion units 82 fold increases. The per capita consumption of electricity in the country also increased from 15 kWh in 1950 to about 338 kWh in 1997-98, which is about 23 times. In the field of Rural Electrification and pump set energisation, country has made a tremendous progress. About 85% of the villages have been electrified except far-flung areas in North Eastern states, where it is difficult to extend the grid supply.

STRUCTURE OF POWER SUPPLY INDUSTRY In December 1950 about 63% of the installed capacity in the Utilities was in the private sector and about 37% was in the public sector. The Industrial Policy Resolution of 1956 envisaged the generation, transmission and distribution of power almost exclusively in the public sector. As a result of this Resolution and facilitated by the Electricity (Supply) Act, 1948, the electricity industry developed rapidly in the State Sector. In the Constitution of India "Electricity" is a subject that falls within the concurrent jurisdiction of the Centre and the States. The Electricity (Supply) Act, 1948, provides an elaborate institutional frame work and financing norms of the performance of the electricity industry in the country. During the post independence period, the various States played a predominant role in the power development. Most of the States have established State Electricity Boards. In some of these States separate corporations have also been established to install and operate generation facilities. In the rest of the smaller States and UTs the power systems are managed and operated by the respective electricity departments. In a few States private licencees are also operating in certain urban areas. From, the Fifth Plan onwards i.e. 1974-79, the Government of India got itself involved in a big way in the generation and bulk transmission of power to supplement the efforts at the State level and took upon itself the responsibility of setting up large power projects to develop the coal and hydroelectric resources in the country as a supplementary effort in meeting the countrys power requirements. The National thermal Power Corporation (NTPC) and National Hydro-electric Power Corporation (NHPC) were set up for these purposes in 1975. North-Eastern Electric Power Corporation (NEEPCO) was set up in 1976 to implement the regional power projects in the North-East. Subsequently two more power generation corporations were set up in 1988 viz. Tehri Hydro Development Corporation (THDC) and Nathpa Jhakri Power Corporation (NJPC). To construct, operate and maintain the inter-State and interregional transmission systems the National Power 5

Transmission Corporation (NPTC) was set up in 1989. The corporation was renamed as POWER GRID in 1992. The policy of liberalization the Government of India announced in 1991 and consequent amendments in Electricity (Supply) Act have opened new vistas to involve private efforts and investments in electricity industry. The Electricity (Supply) Act, 1948 was amended in 1991 to provide for creation of private generating companies for setting up power generating facilities and selling the power in bulk to the grid or other persons. Financial Environment for private sector units modified to allow liberal capital structuring and an attractive return on investment. Up to hundred percent (100%) foreign equity participation can be permitted for projects set up by foreign private investors in the Indian Electricity Sector. In 1995, the policy for Mega power projects of capacity 1000 MW or more and supplying power to more than one state introduced. The Mega projects to be set up in the regions having coal and hydel potential or in the coastal regions based on imported fuel. In 1995 GOI came out with liquid fuel policy permitting liquid fuel based power plants to achieve the quick capacity addition so as to avert a severe power crisis. Liquid fuel linkages (Naphtha) were approved for about 12000 MW Power plant capacity. The non-traditional fuels like condensate and orimulsion have also been permitted for power generation. GOI has promulgated Electricity Regulatory Commission Act, 1998 for setting up of Independent Regulatory bodies both at the Central level and at the State level viz. The Central Electricity Regulatory Commission (CERC) and the State Electricity Regulatory Commission (SERCs) at the Central and the State levels respectively. The main function of the CERC are to regulate the tariff of generating companies owned or controlled by the Central Government, to regulate the tariff of generating companies, other than those owned or controlled by the Central Government, if such generating companies enter into or otherwise have a composite scheme for generation and sale of electricity in more than one State to regulate the inter-state transmission of energy including tariff of the transmission utilities, to regulate inter6

state bulk sale of power and to aid & advise the Central Government in formulation of tariff policy. The CERC has been constituted on 24.7.1998. The main functions of the SERC would be to determine the tariff for electricity wholesale bulk, grid or retail, to determine the tariff payable for use by the transmission facilities to regulate power purchase and procurement process of transmission utilities and distribution utilities, to promote competition, efficiency and economy in the activities of the electricity industries etc. The Electricity Laws (Amendment) Act, 1998 provides for creation of Central and State Transmission utilities. The function of the Central Transmission Utility shall be to undertake transmission of energy through inter-state transmission system and discharge all functions of planning and coordination relating to inter-state transmission system with State Transmission Utilities, Central Government, State Governments, generating companies etc. Power Grid Corporation of India Limited will be Central Transmission Utility. The function of the State Transmission Utility shall be to undertake transmission of energy through intra-state transmission system and discharge all functions of planning and coordination relating to intra-state transmission system with Central Transmission Utility, State Governments, generating companies etc. CURRENT PROBLEM OF POWER SECTOR The most important cause of the problems being faced in the power sector is the irrational and unremunerative tariff structure. Power Supply to agriculture and domestic consumers is heavily subsidized. Only a part of this subsidy is recovered by SEBs through cross subsidization of tariff from commercial and industrial consumers. The SEBs, in the process, have been incurring heavy losses. If the SEBs were to continue to operate on the same lines, their internal resources generation during the next ten years will be negative, being of the order of Rs.(-) 77,000 crore. This raises serious doubts about the ability of the States to contribute their share to capacity addition during the Ninth Plan and thereafter. This highlights the importance of initiating power sector reforms at the earliest and the need for tariff rationalization.

1.3 COMPANY PROFILE Inel power group of companies is a fast growing; quality oriented engineering group offering a wide range of techno- commercial marketing, services and engineering excellence in the power sector. Right from its inception the group has been steadily keeping up to its vision i.e. to offer engineering services like consultancy,erection, testing & commissioning of projects, operation & maintenance, refurbishment & modernization operation and trouble shooting.

INEL POWER GROUP OF COMPANIES Inel power system engineers (p) ltd. Inel power projects (p) ltd. Inel power electro mechanical L.L.C

VISION To excel in power sector. MISSION Providing engineering and & site solution in a healthy environment, conforming to the highest degree in terms of quality, time & safety POTENTIAL Excellent quality related engineering services. Expertise and experience in testing & commissioning. EPC contracting up to 400 KV. Approach to jobs as per international standards

INEL POWER SYSTEM ENGINEERS (P) LTD Established in the year 1997, Chennai, as power system engineers and converted as pvt ltd in the year 2003 with 4 directors to back its operations and also to carry its services overseas their vision and goal unanswering.

INEL POWER PROJECTS (P) LTD Incorporated in the year 2006 to undertake EPC contracts in power sector. INEL POWER ELECTRO MECHANICAL L.L.C Located in Dubai, UAE, an associate company to extends our service to the clients of the Middle East. DIVISION AND SERVICES Erection testing & commissioning Preventing maintenance Operating and maintenance Engineering Refurbishment and modernization

CEIG REGISTRATIONS Tamil Nadu contracting license Tamil Nadu Testing Andra Pradesh- contracting license Andra Pradesh-CEIG/TS/OTK Karnataka-Testing -28051 Maharastra contracting license - ESA 263 -ELEC/TEST/APPROVED/2003/5 - A-1-907/4055 -PRT/No.162/06 -55/07-08 - 20091

CREDENTIALS SEIMENS-kalwa works-QC testing of control & relay panels at factory. Independent authorized service centre of L&T switch gear product in Tamil Nadu. SEIMENS-PTD divn, Mumbai-site support services for T&D products within.

MEMBERSHIP MSME No.330021210130 The national chamber of commerce, India The national safety council, India The institute of electrical technology, UK

CLIENTELE INDIA Chemical & Fertilizers Energy & Automation Automobile Sugar Project builders Minerals & metals Oil & gas Cement Paper IT & telecom

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1.4 NEED OF THE STUDY To study how effectively the performance appraisal is conducted in Inel power system engineers (p) ltd. The study is to provide suitable measures to improve the existing performance appraisal system. The study shows the satisfaction level of the employees in performance appraisal. The study conducted to know the different method of performance appraisal.

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1.5 OBJECTIVE OF THE STUDY

PRIMARY OBJECTIVE A study on the effectiveness of performance appraisal in Inel power system engineers (p) ltd. SECONDARY OBJECTIVE To find out employees opinion towards performance appraisal system To identify the requirements of the employees. To suggest suitable measures to improve the existing performance appraisal.

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1.6 SCOPE OF THE STUDY

The study is conducted to know the effectiveness and expectations among the employees performance appraisals. The study emphasizes the expectations and opinions of employees which would be useful for the organization in understanding the employees mind.

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1.7 LIMITATIONS OF THE STUDY

The data depends totally on the respondents view which may be biased. The study is applicable only to Inel power system engineers (P) ltd, Chennai

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CHAPTER -II
Review of Literature

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2.1 REVIEW OF LITERATURE Longenecker, Clinton O. Goff, Stephen J. Performance appraisals have become a fact of organizational life. Recent research estimates that over 90% of all large organizations in the U.S. employ some form of systematic employee appraisal and review. This widespread use can be attributed to human resource specialists, academics, and consultants who proclaim that performance appraisal is a critically needed tool for effective human resource management. This, in turn, is based on the belief that an effectively designed, implemented, and administered performance appraisal system can provide the organization, the manager, and the employee a myriad of benefits. The literature on performance appraisals generally suggests that the appraisal process can 1) increase employee motivation and productivity, 2) provide a solid basis for wage and salary administration, 3) facilitate discussions concerning employee growth and development, 4) provide data for human resource decisions, and 5) provide managers with a useful communication tool for employee goal setting and performance planning. In theory, the merits of the formal appraisal process are numerous and, indeed, attractive to any organization considering their use. In practice, however, the problems associated with the design and implementation of formal performance appraisal systems are well documented and continue to frustrate both practitioners and academics. Organizations continually struggle to find an "ideal system" that will be accepted by managers and subordinates alike and also fulfill the needs of human resource departments. Some have even gone so far as to suggest that only a small percentage of appraisals are actually effective and accomplish the goals for which they were intended. In this vein, serious questions have been raised concerning the functions actually served by the appraisal process. Are formal appraisals worth the time and effort devoted to them? What do organizations actually accomplish in conducting formal appraisals? The functions effectively served by the appraisal process are a source of continuing

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debate, as academics seek to better understand the appraisal process and organizations seek ways to increase its effectiveness. Research suggests that having a technically sound appraisal system and procedure is no guarantee that the process will be effective. To be effective, managers and subordinates must have a shared perception of the purposes and functions of the process and a shared belief that it is useful to them on an individual basis. Thus, an effective appraisal system is one that satisfies the needs of the parties involved in the process. In addition, for a system to be effective managers must have not only the skills necessary to conduct effective appraisals but also the willingness to do so. Both research and organizational practice suggest, however, that managers and subordinates have different needs and expectations concerning appraisals. In a recent study conducted at a medium-sized organization, researchers found that managers and subordinates differed significantly in their perceptions of both the role and effectiveness of the appraisal process on such key issues as the basic purpose, the level of fairness, the link between pay and performance, honesty of communication, completeness of feedback, means to improve the manager-subordinate relationship, and the extent to which appraisal lets subordinates know where they stand. The overall effectiveness of the process received mixed reviews. In addition, others have found that employees reacted more favorably to the appraisal process when it satisfied their needs and included an opportunity to state their side of the issue; when factors on which they were being evaluated were job-related; and when objectives and plans were openly discussed. While managers and subordinates may not agree on what constitutes an effective appraisal, the subordinate's acceptance of the appraisal increased when managers and subordinates shared an understanding of its purpose and the role of each party. Performance appraisals have been characterized by employees as acceptable, fair and effective when 1) opportunities to challenge or rebut evaluations exist, 2) two-way communication is encouraged, 3) raters are familiar with the work of subordinates, and 4)

17

there is a consistent application of performance standards. Collectively, research makes it clear that it is critically important for managers and their subordinates to have shared perceptions regarding the appraisal purpose and process. With this background, we asked a basic question that strikes at the heart of why organizations conduct formal performance appraisals. How effective is the formal performance appraisal system in a typical, large organization in the U.S.? To investigate this issue, we conducted research designed to answer four questions that focus specifically on the appraisal process as a manager/subordinate interaction. 1) What specific functions (purposes) do managers and subordinates believe are served by the formal appraisal process? 2) How effective is the appraisal process at fulfilling these functions? 3) Do managers and subordinates differ in their perceptions of appraisal effectiveness? 4) What are the primary causes of appraisal ineffectiveness and failure?

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CHAPTER -III
Research Methodology

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3.1 RESEARCH METHODOLOGY Research is a structured enquiry that utilizes acceptable scientific methodology to solve problems and create new knowledge that is generally applicable. 3.1 RESEARCH DESIGN A plan outlining how information is to be gathered for an assessment or evaluation that includes identifying the data gathering method(s), the instruments to be used/created, how the instruments will be administered, and how the information will be organized and analyzed. 3.2 SAMPLING METHOD A simple random sample is a subset of individuals (a sample) chosen from a larger set (a population). 3.3 POPULATION SIZE The population size is 400. 3.4 SAMPLING SIZE The sample size is 150. 3.5 DATA COLLECTION 3.5.1 Primary data The primary data are those that are collected afresh and for first time, thus happen to be original in character. The primary data is collected using a questionnaire. The questionnaire so designed is a structured one.

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3.5.2 Secondary data The secondary data are those which have already been collected by someone else like journals, Review of literature. The tools used for secondary data were collected through company profile, organization website and other related library books.

3.6 RESEARCH INSTRUMENT Descriptive research It is also known as statistical research, describes data and characteristics about the population or phenomenon being studied.

3.7 STATISTICAL TOOLS The tools used for the analysis are, chi-square test, weighted average method & correlation co-efficient.

3.7.1 Chi-square test A chi-square test is any statistical hypothesis test in which the sampling

distribution of the test statistic is a chi-square distribution when the null hypothesis is true, or any in which this is asymptotically true, meaning that the sampling distribution can be made to approximate a chi-square distribution as closely as desired by making the sample size large enough.

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3.7.2 Weighted average method The weighted average is obtained on dividing the weighted totals by the sum of weights totals by the sum of weights. Let X1, X2, Xn Occur with weights W1, W2, W3Wn then. Weighted average = WiXi Wi A weighted average with appropriated weight is generally used when the moving averages affected by extreme values. 3.7.3 Karl Pearson correlation co-efficient Correlation is a statistical technique that can show whether and how strongly pairs of variables are related.

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CHAPTER- IV
Analysis And Interpretation

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4.1 DATA ANALYSIS & INTERPRETATION 4.1.1. TABLE SHOWING WHETHER THE SUPERIOR HAS INFORMED ABOUT THE PERFORMANCE APPRAISAL MODEL, USED IN THE ORGANIZATION. S.NO 1 2 PARTICULARS Yes No TOTAL NO OF RESPONDENTS 150 0 150 PERCENTAGE 100 0 100

4.1.1. CHART SHOWING WHETHER THE SUPERIOR HAS INFORMED ABOUT THE PERFORMANCE APPRAISAL MODEL, USED IN THE ORGANIZATION.
NO OF RESPONDENTS 160 140 120 100 80 60 40 20 0

150

0 Yes No

INFERENCE
It is inferred that all the respondents have responded that the superior has informed about the performance appraisal model, used in the organization.

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4.1.2. TABLE SHOWING THE PERFORMANCE APPRAISAL MODEL IN THE ORGANIZATION S.NO 1 2 3 4 5 6 PARTICULARS Simple Complicated Objective Subjective Efficient Inefficient TOTAL NO OF RESPONDENTS 76 0 47 14 13 0 150 PERCENTAGE 50.7 0 31.3 9.3 8.7 0 100

4.1.2. CHART SHOWING THE PERFORMANCE APPRAISAL MODEL IN THE ORGANIZATION

NO OF RESPONDENTS 80 70 60 50 40 30 20 10 0

76 47 0 Simple Complicated Objective 14 Subjective 13 Efficient 0 Inefficient

INFERENCE
It is inferred that 50% of the respondents said that the performance appraisal model in the organization is simple & 13% said that it is efficient

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4.1.3. TABLE SHOWING HOW OFTEN DOES PERFORMANCE APPRAISAL MATCH TO THE EMPLOYEES EXPECTATION S.NO 1 2 3 4 5 PARTICULARS Every time Often Sometimes Rarely Never TOTAL NO OF RESPONDENTS 42 71 29 8 0 150 PERCENTAGE 28 47.3 19.3 5.4 0 100

4.1.3. CHART SHOWING HOW OFTEN DOES PERFORMANCE APPRAISAL MATCH TO THE EMPLOYEES EXPECTATION

NO OF RESPONDENTS 80 60 40 20 0 Every time Often Sometimes 42 29 8 Rarely 0 Never

71

INFERENCE
It is inferred that 47% of the respondents said that the performance appraisal match to the employees expectation & 5% said it match to the expectations rarely.

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4.1.4. TABLE SHOWING HOW OFTEN THE PERFORMANCE REVIEW TAKES PLACE S.NO 1 2 3 4 5 PARTICULARS Once a week Month Every 3 month Every 6 month Once a year TOTAL NO OF RESPONDENTS 0 0 27 47 76 150 PERCENTAGE 0 0 18 31.3 50.7 100

4.1.4. CHART SHOWING HOW OFTEN THE PERFORMANCE REVIEW TAKES PLACE
NO OF RESPONDENTS Once a year Every 6 month Every 3 month Month 0 Once a week 0 0 10 20 30 40 50 60 70 80 27 47 76

INFERENCE
It is inferred that 50% of the respondents said that the performance review takes place once in a year and 18% said that review take place in every 3 month

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4.1.5. TABLE SHOWING THE EXTENT TO WHICH, SUPERVISOR GIVES FEEDBACK TO THE EMPLOYEES REGARDING PERFORMANCE APPRAISAL S.NO 1 2 3 4 5 PARTICULARS To a very great extent To a considerable extent To some extent To a very little extent None of the above TOTAL NO OF RESPONDENTS 55 63 32 0 0 150 PERCENTAGE 36.7 42 21.3 0 0 100

4.1.5. CHART SHOWING THE EXTENT TO WHICH, SUPERVISOR GIVES FEEDBACK TO THE EMPLOYEES REGARDING PERFORMANCE APPRAISAL
NO OF RESPONDENTS 70 60 50 40 30 20 10 0

55

63

32

0 To a considerable extent To some extent To a very little extent

0 None of the above

To a very great extent

INFERENCE
It is inferred that 42% of the respondents said that supervisor gives feedback to the employees regarding performance appraisal and 21% said that it s only to some extent

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4.1.6. TABLE SHOWING WHETHER THE SUPERIOR ALLOWS EMPLOYEES TO VIEW THEIR PERFORMANCE EVALUATION S.NO 1 2 3 4 5 PARTICULARS Strongly agree Agree Neutral Disagree Strongly disagree TOTAL NO OF RESPONDENTS 27 53 70 0 0 150 PERCENTAGE 18 35.3 46.7 0 0 100

4.1.6. CHART SHOWING WHETHER THE SUPERIOR ALLOWS EMPLOYEES TO VIEW THEIR PERFORMANCE EVALUATION

NO OF RESPONDENTS 80 70 60 50 40 30 20 10 0 70 53 27 0 Strongly agree Agree Neutral Dis agree 0 Strongly disagree

INFERENCE
It is inferred that 46% of the respondents said that the superior allows employees to view their performance evaluation & 18% strongly agree with the statement

29

4.1.7. TABLE SHOWING THE AREAS THAT SHOULD BE IMPROVED UPON S.NO 1 2 3 PARTICULARS Standards Frequency of appraisal Appraiser TOTAL NO OF RESPONDENTS 41 97 12 150 PERCENTAGE 27.3 64.7 8 100

4.1.7. CHART SHOWING THE AREAS THAT SHOULD BE IMPROVED UPON

NO OF RESPONDENTS

100 80 60 40 20 0 Standards Frequency of appraisal Appraiser 41 12 97

INFERENCE
It is inferred that 64% of the respondents said that Frequency of appraisal should be improved & 8% said that appraiser should be improved

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4.1.8. TABLE SHOWING WHETHER THE ORGANIZATION IS DOCUMENTING INDIVIDUAL PERFORMANCE TO SUPPORT COMPENSATION AND CAREER PLANNING DECISIONS S.NO 1 2 3 4 5 PARTICULARS Strongly agree Agree Neutral Disagree Strongly disagree TOTAL NO OF RESPONDENTS 43 87 20 0 0 150 PERCENTAGE 28.6 58 13.4 0 0 100

4.1.8. CHART SHOWING WHETHER THE ORGANIZATION IS DOCUMENTING INDIVIDUAL PERFORMANCE TO SUPPORT COMPENSATION AND CAREER PLANNING DECISIONS
NO OF RESPONDENTS 100 80 60 40 20 0 Strongly agree Agree Neutral 43 20 0 Disagree 0 Strongly disagree

87

INFERENCE
It is inferred that 58% of the respondents agree that the organization is documenting individual performance to support compensation and career planning decisions and 13% of the respondents said that it s neutral.

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4.1.9. TABLE SHOWING THE EXTENT TO WHICH, THE ORGANIZATION MOTIVATE EMPLOYEES AFTER APPRAISAL TO DEVELOP AND IMPROVE PERFORMANCE S.NO 1 2 3 4 5 PARTICULARS To a very great extent To a considerable extent To some extent To a very little extent None of the above TOTAL NO OF RESPONDENTS 47 79 24 0 0 150 PERCENTAGE 31.3 52.7 16 0 0 100

4.1.9. CHART SHOWING THE EXTENT TO WHICH, THE ORGANIZATION MOTIVATE EMPLOYEES AFTER APPRAISAL TO DEVELOP AND IMPROVE PERFORMANCE
90 80 70 60 50 40 30 20 10 0

79

47 24 0 To a very little extent 0 None of the above

To a very great To a extent considerable extent

To some extent

INFERENCE
It is inferred that 52% of the respondents said that agree that the organization motivate employees after appraisal to develop and improve performance to a considerable extent & 16 said that it s only to some extent.

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4.1.10. TABLE SHOWING WHETHER PERFORMANCE IS ONLY MEASURED WITH THE REVIEW OF PAST PERFORMANCE S.NO 1 2 PARTICULARS Yes No TOTAL NO OF RESPONDENTS 109 41 150 PERCENTAGE 72.6 27.4 100

4.1.10. CHART SHOWING WHETHER PERFORMANCE IS ONLY MEASURED WITH THE REVIEW OF PAST PERFORMANCE

NO OF RESPONDENTS

No, 41

Yes, 109

INFERENCE
It is inferred that 72% of the respondents said that performance is only measured with the review of past performance & 27% said does not agree with the statement

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4.1.11. TABLE SHOWING EVALUATING PERFORMANCE AND DELIVERING INCENTIVES ARE CARRIED OUT IN A FAIR AND CONSISTENT MANNER S.NO 1 2 3 4 5 PARTICULARS Strongly agree Agree Neutral Disagree Strongly disagree TOTAL NO OF RESPONDENTS 77 29 44 0 0 150 PERCENTAGE 51.4 19.3 29.3 0 0 100

4.1.11. CHART SHOWING EVALUATING PERFORMANCE AND DELIVERING INCENTIVES ARE CARRIED OUT IN A FAIR AND CONSISTENT MANNER

NO OF RESPONDENTS 90 80 70 60 50 40 30 20 10 0 77

44 29 0 Strongly agree Agree Neutral Disagree 0 Strongly disagree

INFERENCE

34

It is inferred that 51% of the respondents strongly agree that evaluating performance and delivering incentives are carried out in a fair and consistent manner and 19% agrees.

4.1.12. TABLE SHOWING WHETHER PERFORMANCE RATING WAS DONE PERIODICALLY S.NO 1 2 PARTICULARS Yes No TOTAL NO OF RESPONDENTS 150 0 150 PERCENTAGE 100 0 100

4.1.12. CHART SHOWING WHETHER PERFORMANCE RATING WAS DONE PERIODICALLY

NO OF RESPONDENTS

No 0

Yes

150

20

40

60

80

100

120

140

160

INFERENCE
35

It is inferred that Most of the respondents said that the performance rating was done periodically

4.1.13. TABLE SHOWING WHETHER PERFORMANCE-BASED MOTIVATES EMPLOYEE TO IMPROVE/SUSTAIN PERFORMANCE S.NO 1 2 3 4 5 PARTICULARS Strongly agree Agree Neutral Disagree Strongly disagree TOTAL NO OF RESPONDENTS 26 104 18 2 0 150 PERCENTAGE 17.3 69.3 12 1.4 0 100

PAY

4.1.13. CHART SHOWING WHETHER PERFORMANCE-BASED MOTIVATES EMPLOYEE TO IMPROVE/SUSTAIN PERFORMANCE

PAY

Disagree, 2 Neutral, 18

Strongly disagree, 0 Strongly agree, 26

Agree, 104

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INFERENCE
It is inferred that 51% of the respondents agrees that performance-based pay motivates employee to improve/sustain performance & 1.4% disagrees.

4.1.14. TABLE SHOWING THE EXTENT TO WHICH MANAGERS AND SUBORDINATES HAVE SHARED PERCEPTION OF PURPOSE AND FUNCTION OF APPRAISAL PROCESS S.NO 1 2 3 4 5 PARTICULARS To a very great extent To a considerable extent To some extent To a very little extent None of the above TOTAL NO OF RESPONDENTS 28 79 43 0 0 150 PERCENTAGE 18.7 52.6 28.7 0 0 100

4.1.14. CHART SHOWING THE EXTENT TO WHICH MANAGERS AND SUBORDINATES HAVE SHARED PERCEPTION OF PURPOSE AND FUNCTION OF APPRAISAL PROCESS
NO OF RESPONDENTS 90 80 70 60 50 40 30 20 10 0

79 43 28 0 To a very great extent To a cons iderable extent To some extent To a very little extent 0 None of the above

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INFERENCE
It is inferred that 52% of the respondents said that the managers and subordinates have shared perception of purpose and function of appraisal process to a considerable extent & 18% to a very great extent.

4.1.15. TABLE SHOWING WHETHER PERFORMANCE APPRAISAL PROCESS RESULTS IN BETTER COMMUNICATION BETWEEN ME AND MY SUPERVISOR S.NO 1 2 3 4 5 PARTICULARS Strongly agree Agree Neutral Disagree Strongly disagree TOTAL NO OF RESPONDENTS 37 80 33 0 0 150 PERCENTAGE 24.6 53.4 22 0 0 100

4.1.15. CHART SHOWING WHETHER PERFORMANCE APPRAISAL PROCESS RESULTS IN BETTER COMMUNICATION BETWEEN ME AND MY SUPERVISOR

NO OF RESPONDENTS Strongly disagree 0 Disagree 0 Neutral Agree Strongly agree 0 10 37 20 30 40 50 60 70 80 90 33 80

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INFERENCE
It is inferred that 53% of the respondents agree that performance appraisal process results in better communication between me and my supervisor & 22% said that it is neutral. 4.1.16. TABLE SHOWING THE EXTENT TO WHICH APPRAISALS ARE ACTUALLY EFFECTIVE AND ACCOMPLISH GOALS S.NO 1 2 3 4 5 PARTICULARS To a very great extent To a considerable extent To some extent To a very little extent None of the above TOTAL NO OF RESPONDENTS 33 70 47 0 0 150 PERCENTAGE 22 46.7 31.3 0 0 100

4.1.16. CHART SHOWING THE EXTENT TO WHICH APPRAISALS ARE ACTUALLY EFFECTIVE AND ACCOMPLISH GOALS
NO OF RESPONDENTS

80 60 40 20 0 To a very great To a extent considerable extent To some extent 33 70 47 0 To a very little extent 0 None of the above

INFERENCE

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It is inferred that 46% of the respondents said that appraisals are actually effective and accomplish goals and 22% to a very great extent.

4.1.17. TABLE SHOWING WHETHER PERFORMANCE APPRAISAL SYSTEM HELPS TO IDENTIFY THE STRENGTH AND WEAKNESS OF THE EMPLOYEE S.NO 1 2 3 4 5 PARTICULARS Strongly agree Agree Neutral Disagree Strongly disagree TOTAL NO OF RESPONDENTS 31 66 53 0 0 150 PERCENTAGE 20.6 44 35.4 0 0 100

4.1.17. CHART SHOWING WHETHER PERFORMANCE APPRAISAL SYSTEM HELPS TO IDENTIFY THE STRENGTH AND WEAKNESS OF THE EMPLOYEE

NO OF RESPONDENTS

Strongly disagree 0 Disagree 0 Neutral Agree Strongly agree 0 31 20 40 60 80 53 66 NO OF RESPONDENTS

INFERENCE

40

It is inferred that 44% of the respondents agree that performance appraisal system helps to identify the strength and weakness of the employee & 20% strongly agrees.

4.1.18. TABLE SHOWING WHETHER EMPLOYEE IS REWARDED FOR GOOD PERFORMANCE

S.NO 1 2

PARTICULARS Yes No TOTAL

NO OF RESPONDENTS 137 13 150

PERCENTAGE 91.3 8.7 100

4.1.18. CHART SHOWING WHETHER EMPLOYEE IS REWARDED FOR GOOD PERFORMANCE

NO OF RESPONDENTS

No, 13

Yes , 137

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INFERENCE
It is inferred that 91.3% of the respondents said that employee is rewarded for good performance & 13 disagree.

4.1.19. TABLE SHOWING, IN WHAT WAY THE ORGANIZATION IMPROVE EMPLOYEES PERFORMANCE S.NO 1 2 3 NO OF RESPONDENTS Counseling 99 Training 28 Development programs 23 TOTAL 150 PARTICULARS PERCENTAGE 66 18.6 15.4 100

4.1.19. CHART SHOWING, IN WHAT WAY THE ORGANIZATION IMPROVE EMPLOYEES PERFORMANCE

NO OF RESPONDENTS 99 100 80 60 40 20 0 Counseling Training Development programs 28 23

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INFERENCE
It is inferred that 66% of the respondents said that the organization improve employees performance through counseling & 15% said that it is through development programs

4.1.20. TABLE SHOWING PERFORMANCE APPRAISAL IS HELPFUL IN REDUCING THE GRIEVANCE AMONG THE EMPLOYEES S.NO 1 2 3 4 5 PARTICULARS Strongly agree Agree Neutral Disagree Strongly disagree TOTAL NO OF RESPONDENTS 67 71 12 0 0 150 PERCENTAGE 44.7 47.3 8 0 0 100

4.1.20. CHART SHOWING PERFORMANCE APPRAISAL IS HELPFUL IN REDUCING THE GRIEVANCE AMONG THE EMPLOYEES
NO OF RESPONDENTS 80 70 60 50 40 30 20 10 0

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71

NO OF RESPONDENTS 12 0 Strongly agree Agree 0 Neutral Disagree Strongly disagree

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INFERENCE
It is inferred that 47% of the respondents agree that performance appraisal is helpful in reducing the grievance among the employees & 8% said that it is neutral

4.1.21. TABLE SHOWING NEEDS WHICH DERIVED FROM SYSTEM S.NO 1 2 3 4 5 6 PARTICULARS Training needs Motivation Counseling Stress Management Developments Leadership quality TOTAL NO OF RESPONDENTS 21 43 61 5 9 11 150 PERCENTAGE 14 28.7 40.6 3.4 6 7.3 100

4.1.21. CHART SHOWING NEEDS WHICH DERIVED FROM SYSTEM

NO OF RESPONDENTS Leadership quality Developments Stress Management Counseling Motivation Training needs 0 21 10 20 30 40 50 60 70 43 5 61 11 9

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INFERENCE
It is inferred that 40% of the respondents said that needs which derived from system is training needs & 3% said as stress management.

4.1.22. TABLE SHOWING THE EXTENT TO WHICH THE PERFORMANCE OF AN INDIVIDUAL HAS BEEN INCREASED AFTER APPRAISAL S.NO 1 2 3 4 5 PARTICULARS To a very great extent To a considerable extent To some extent To a very little extent None of the above TOTAL NO OF RESPONDENTS 51 65 34 0 0 150 PERCENTAGE 34 43.3 22.7 0 0 100

NO OF RESPONDENTS

4.1.22. 70 CHART SHOWING THE EXTENT TO WHICH THE PERFORMANCE 60 OF AN50 INDIVIDUAL HAS BEEN INCREASED AFTER APPRAISAL
40 30 20 10 0 51 65 34 0 To a very great extent To a considerable extent To s ome extent To a very little extent 0 None of the above

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INFERENCE
It is inferred that 43% of the respondents said that the performance of an individual has been increased after appraisal to a considerable extent & 22% said that it is only to some extent

4.1.23. TABLE SHOWING THE OVERALL RATE FOR THE PERFORMANCE APPRAISAL SYSTEM IN THE ORGANIZATION S.NO 1 2 3 4 5 6 7 8 9 10
70 60 50 40 30 20 10 0

PARTICULARS

NO OF RESPONDENTS Very bad 0 poor 0 Obscure 0 Moderate 3 Fair 9 Ok 17 Good 34 Very good 15 Satisfied 64 Excellent 8 NO OF RESPONDENTS TOTAL 150

PERCENTAGE 0 0 0 2 6 11.3 22.7 10 42.6 5.4 100

4.1.23. CHART SHOWING THE OVERALL RATE FOR THE PERFORMANCE 34 17 15 9 APPRAISAL0SYSTEM3IN THE ORGANIZATION 8 0 0
go od at e r ba d O k or re G oo fie d Fa i M od er Sa tis Ve ry O bs y Ve r Ex c el le po cu nt d

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INFERENCE It is inferred that 42% of the respondents are satisfied with the overall performance appraisal system in the organization & 2% said that it is moderate.

4.2 CHI SQUARE TEST

Relationship between gender and the extent to which the performance of an individual has been increased after performance appraisal. Null hypothesis (Ho) = There is no relationship between the gender and the extent to which the performance of an individual has been increased after performance appraisal. Alternate hypothesis (H1) = There is no relationship between the gender and the extent to which the performance of an individual has been increased after performance appraisal.

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Gender/response To very great Male Female Total extent 33 18 51

a To extent 41 24 65

a To some To very little 23 11 34 extent 0 0 0

a None of Total the above 0 0 0 97 53 150

considerable extent

S.NO 1 2 3 4 5 6 7 8 9 10 Total

Oi 33 41 23 0 0 18 24 11 0 0 150

Ei 32.98 42.03 21.9 0 0 18.02 22.9 12.01 0 0

(Oi-Ei) ^ 2 0.0004 1.06 1.21 0 0 0.0004 1.21 1.02 0 0

Oi-Ei ^ 2/Ei 0 0.025 0.06 0 0 0 0.06 0.09 0 0 0.235

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Calculated value = 0.235 Degree of freedom = (R-1) (C-1) = (2-1) (5-1) = (1) (4) =4 Table value = 9.48

INFERENCE For 4 d.f. Chi-square @ 5% level of significance is 9.48, the computed value is 0.235.the computed value is less than the table value, therefore the null hypothesis is accepted. Thus there is no relationship between the gender and the extent to which the performance of an individual has been increased after performance appraisal. 4.3 WEIGHTED AVERAGE METHOD Weighted average method to show the respondents opinion about, whether the organization motivate employees after appraisal to develop and improve performance. S.NO 1 2 3 4 5 GROUP To a very great extent To a considerable extent To some extent To a very little extent None of the above Total NO OF RESPONDENTS 47 79 24 0 0 150 WEIGHTS ASSIGNED 5 4 3 2 1 WEIGHTED AVERAGE 235 316 72 0 0 623

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Weighted Average = 623/150 = 4.15 INFERENCE: From the above table it is inferred that majority of the respondents said that the organization motivate employees after appraisal to develop and improve performance to a considerable extent.

4.4 KARL PEARSON CORRELATION COEFFICIENT X denotes the extent to which supervisor gives feedback to the employees regarding performance appraisal Y denotes the extent to which appraisals are actually effective and accomplish goals. PARTICULARS To a very great extent To a considerable extent To some extent To a very little extent None of the above X 55 63 32 0 0 Y 33 70 47 0 0

X 55 63 32 0 0

Y 33 70 47 0 0

XY 1815 4410 1504 0 0

X^2 3025 3969 1024 0 0

Y^2 1089 4900 2209 0 0

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N=5 Sum of x =150 Sum of y=150 Sum of XY= 7729 Sum of X^2 = 8018 Sum of Y^2= 8189

r = 0.895

INFERENCE It is inferred that there is no relationship between, the extents to which supervisor gives feedback to the employees regarding performance appraisal (X). & the extents to which appraisals are actually effective and accomplish goals(Y).

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CHAPTER -V
Findings Suggestions Conclusion

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5.1 FINDINGS

All the respondents have responded that the superior has informed about the performance appraisal model, used in the organization. 50% of the respondents said that the performance appraisal model in the organization is simple & 13% said that it is efficient 47% of the respondents said that the performance appraisal match to the employees expectation & 5% said it match to the expectations rarely. 50% of the respondents said that the performance review takes place once in a year and 18% said that review take place in every 3 month 46% of the respondents said that the superior allows employees to view their performance evaluation & 18 strongly agree with the statement 64% of the respondents said that Frequency of appraisal should be improved & 8% said that appraiser should be improved 58% of the respondents agree that the organization is documenting individual performance to support compensation and career planning decisions and 13% of the respondents said that it s neutral.

52% of the respondents said that agree that the organization motivate employees after appraisal to develop and improve performance to a considerable extent & 16 said that it s only to some extent.

72% of the respondents said that performance is only measured with the review of past performance & 27% said does not agree with the statement 53

51% of the respondents strongly agree that evaluating performance and delivering incentives are carried out in a fair and consistent manner and 19% agrees. Most of the respondents said that the performance rating was done periodically 51% of the respondents agree that performance-based pay motivates employee to improve/sustain performance & 1.4% disagrees. 52% of the respondents said that managers and subordinates have shared perception of purpose and function of appraisal process to a considerable extent & 18% to a very great extent.

53% of the respondents agree that performance appraisal process results in better communication between me and my supervisor & 22% said that it is neutral. 46% of the respondents said that appraisals are actually effective and accomplish goals and 22% to a very great extent 44% of the respondents agree that performance appraisal system helps to identify the strength and weakness of the employee & 20% strongly agrees. 91.3% of the respondents said that employee is rewarded for good performance & 13 disagree. 66% of the respondents said that the organization improve employees performance through counseling & 15% said that it is through development programs 47% of the respondents agree that performance appraisal is helpful in reducing the grievance among the employees & 8% said that it is neutral 40% of the respondents said that needs which derived from system is training needs & 3% said as stress management. 43% of the respondents said that the performance of an individual has been increased after appraisal to a considerable extent & 22% said that it is only to some extent 42% of the respondents are satisfied with the overall performance appraisal system in the organization & 2% said that it is moderate. For 4 d.f. Chi-square @ 5% level of significance is 9.48, the computed value is 0.235.the computed value is less than the table value, therefore the null hypothesis is accepted. Thus there is no relationship between the gender and the extent to which the performance of an individual has been increased after performance appraisal

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It is inferred that majority of the respondents said that the organization motivate employees after appraisal to develop and improve performance to a considerable extent.

There is no relationship between the extents to which supervisor gives feedback to the employees regarding performance appraisal (X). & the extents to which appraisals are actually effective and accomplish goals(Y).

5.2 SUGGESTIONS The company should circulate the information to the employees with respect to factors for performance appraisal. Company should regularly get feedback from employees and change according to their views & suggestions. Management can improve the employees performance by conducting training and development programs. Employees participation shall be encouraged in the appraisal procedure in order to make the system more effective. Managers and subordinates should, share perception of purpose and functions of appraisal process as it was only 18% of respondents were shared to a very great extent.

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5.3 CONCLUSION The study aimed at understanding the effectiveness of performance appraisal in Inel power system engineers private ltd, Chennai. Research has conducted a survey with the help of questionnaire. The study reveals that performance appraisal plays a major role in the performance of executives. The employees are by and large satisfied with the performance appraisal system followed in the organization. Apart from this, The Company should ask suggestions from the employees towards performance appraisal and make changes accordingly.

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CHAPTER -VI
Appendix
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 Bibliography

QUESTIONNAIRE Dear sir/madam, I am L.Indhu second year MBA student of Anand Institute of Higher Technology, as a part of my academic curriculum. I intend to do A study on effectiveness of performance appraisal in Inel power system engineers (P) ltd, Chennai. In connection with the above topic I need certain information which will be purely used for my academic purpose. So kindly oblige me by filling up the questionnaire.

Name: Age : 21-30 31-40 41-50 Above 50 58

Gender: Male Female Educational qualification: +2 UG PG Other

1. Have you informed about the performance appraisal model, used in the organization during induction? Yes No

2. How do you find the performance appraisal model in the organization? (Mark the relevant ones) Simple Complicated Objective Subjective Efficient Inefficient 3. According to you, how often does performance appraisal match to your expectation? Every time Often

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Sometimes Rarely Never 4. According to you, how often the performance review takes place? Once a week Month Every 3 month Every 6 month Once a year 5. To what extent, supervisor gives feedback to the employees regarding performance appraisal? To a very great extent To a considerable extent To some extent To a very little extent None of the above 6. Do you agree that the superior allow employees to view their performance evaluation? Strongly agree Agree Neutral Disagree Strongly disagree 7. What are the areas that should be improved upon? Standards Frequency of appraisal 60

Appraiser 8. Do you agree that organization is documenting individual performance to support compensation and career planning decisions? Strongly agree Agree Neutral Disagree Strongly disagree 9. To what extent, the organization motivate employees after appraisal to develop and improve performance? To a very great extent To a considerable extent To some extent To a very little extent None of the above 10. Is your performance is only measured with the review of past performance? Yes No

11. Evaluating performance and delivering incentives are carried out in a fair and consistent manner. Do you agree with this statement? Strongly agree Agree Neutral

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Disagree Strongly disagree 12. Does the performance rating was done periodically? Yes No

13.

Do

you

agree

that

Performance-based

pay

motivates

employee

to

improve/sustain performance? Strongly agree Agree Neutral Disagree Strongly disagree

14. To what extent, the managers and subordinates have shared perception of purpose and function of appraisal process? To a very great extent To a considerable extent To some extent To a very little extent None of the above 15 . The performance appraisal process results in better communication between me and my supervisor.

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Do you agree with this statement?

Strongly agree Agree Neutral Disagree Strongly disagree

16 . To what extent the appraisals are actually effective and accomplish goals? To a very great extent To a considerable extent To some extent To a very little extent None of the above

17. Performance appraisal system helps to identify the strength and weakness of the employee? Do you agree with this statement?

Strongly agree Agree Neutral

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Disagree Strongly disagree

18 . Does the employee is rewarded for good performance? Yes No 19. In what way does your organization improve your performance? Counseling Training Development programs 20. Performance appraisal is helpful in reducing the grievance among the employees? Do you agree with this statement?

Strongly agree Agree Neutral Disagree Strongly disagree

21. Mark the following needs which derived from system? Training needs Motivation Counseling

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Stress Management Developments Coaching Leadership quality 22. To what extent, the performance of an individual has been increased after appraisal? To a very great extent To a considerable extent To some extent To a very little extent None of the above 23. How do you rate the performance appraisal system in your organization on a scale of 1-10with 1 being the lowest & 10 being the highest? Very bad poor Obscure Moderate Fair Ok Good Very good Satisfied Excellent

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6.1 BIBLIOGRAPHY\WEBLIOGRAPHY

BIBLIOGRAPHY AUTHOR V.S.P RAO BOOK HUMAN RESOURCE V.JAYAKUMAR MANAGEMENT HUMAN RESOURCE R.SENAPATHI MANAGEMENT RESEARCH METHODOLOGY 3.1-3.137 FIRST LAKSHMI 6.1-6.23 THIRD LAKSHMI PAGES REFERED 357-380 EDITION SECOND PUBLICATION EXCEL

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WEBSITE REFERENCES www.google.com www.inelpse.com www.citehr.com www.wikipedia.com www.emeraldinsight.com

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