TITLE

'A study on Performance Appraisal System in CIAL'

Introduction:

Performance is an important aspect of everyone’s job. Performance appraisal is a method of

evaluating the behavior of employees in the work spot, normally which include both
qualitative aspects of job performance indicates how well an individual is fulfilling the job
demands and it is always in terms of better or good results. Under performance appraisal we
evaluate not only the performance of worker but also his potential.

Why Appraise?
Historically, organizations’ relied upon evaluations and ratings provided by their
employees’ immediate supervisors to make pay, transfer, and promotion decisions. Although
many performance appraisal systems contained an employee development element, the
exercise was seldom followed up on, and developmental goals were rarely referenced until
the next appraisal session.

Organizational needs to improve employee motivation, morale, and productivity and

to avoid unnecessary litigation led to the redesign of performance appraisal and reward
systems to facilitate employee development and to promote organizational goals.
Specifically, organizations hope to improve motivation and productivity by defining,
measuring and realigning employee behaviors to better reflect organizational goals and
expectations. Employee development efforts are facilitated by improved feedback, counseling
and goal setting techniques. In addition, well-designed performance management systems
positively influence employee motivation by providing a vehicle for formally recognizing
and allocating rewards to outstanding employees.
 Performance Appraisal

Administrative Uses
Compensation Development Uses
Promotion Identifying strengths
Dismissal Identifying areas for
.
Downsizing growth
Layoffs Development planning
 RESEARCH OBJECTIVES

• To study effectiveness of the performance Appraisal System prevailing in CIAL.

• To study the feedback and communication mechanism of CIAL
relevant to the appraisal system.
• To study the method of Performance Appraisal observed or practised in the organization.
• To study the awareness or knowledge of the employees of Appraisal system and the
evaluation factor used in assessing or judging their performance.
• To analyze different approaches in Performance Appraisal.
• To find current Industry practices in Performance Appraisal.
• The study provides to know about different techniques and tools in evaluations and
appraising the performance of employees.

Performance appraisal has been considered as a most significant and indispensable tool
for an Organization for the information it provides is highly useful in making decisions
regarding various personal aspect such as promotions and merit increases in valid
performance data are available. It is possible for the researcher to understand the other areas
of personal management like promotions and compensation policies.

NEED FOR PERFORMANCE APPRAISAL

There are numerous reasons of performance appraisal. They are as follows:
• Ensuring mutual understanding of performance expectations.
• Building confidence between manages and directs repots.
• Clarifying misunderstanding regarding performance expectation.
• Identifying training and development needs.
• Supporting decision about pay and bonuses.
• Sustaining and enhancing motivation.
• Forecasting communication and feedback.
• Ongoing management of performance by setting expectations, periodically reviewing
progress, and conducting the overall evaluation.
• Set performance objectives.
• Assist career-planning decisions.
 • Assess future potential and promotion.
• Review past performance.
• Performance appraisal is a means of getting better result from the organization, team
and individual by understanding and managing performance.

Within a framework of planned goals, standards and competence requirement, it is process

for establishing shared understanding about what is to be achieved, and an approach to
managing and developing people in a way that increases the responsibility that it will be
achieved in the short and linger term. It is owned and driven by line management.

Over 30% of companies use performance appraisal for more than one purpose. This reflects
to the wide spread recognition that performance appraisal, if done effectively, can increase
productivity, develop bench strength for future growth, and decrease organizational costs.
It is essential that the team agree on the purpose of performance review before embarking on the
design of an appraisal instrument. It is also essential to recognize and take action to address conflicting
purpose served by the same process. If pay is tied to performance, for example, the team will have to
take precautions to ensure that discussion are open and candid so the development purpose can be
adequately served.

At the very least, the tools should serve a performance management and development
functions that let people know that is expected at the beginning of the appraisal period and
how performance will be appraised. Then, periodically throughout the appraisal period,
feedback is given on how well the expectation are being met and what to do improve
performance. At the end of the performance cycle overall performance can be appraised and
used to support decisions in development planning.

RESEARCH METHODOLOGY

The primary aim of the present study is to examine the performance evaluation of the
workers and employees working in CIAL. The study has been conducted in CIAL,Kerala.
This study explains the selection of area of the study, universe, sampling procedure, the
various methods of data collection and the analysis of data.
The study has been covered based on the following steps:

A) DATA COLLECTION:

The data has been collected from the two main Sources of data namely:
 Primary Source of data
 Secondary Source of data

PRIMARY SOURCE

Primary source includes the data that is collected from CIAL and selected respondents.
The required information is collected in the following ways:

 Administered a structured questionnaire.

 On the basis of observation.
 By interacting with the concerned employees.

Tools used for data collection are as follows:

• Discussions (Unstructured Discussions)

• Questionnaire (Structured Questionnaire)

Unstructured Discussion:
Under this method of data collection the researcher personally interviews the respondents
to gather the information. The respondents are asked to present their views and opinions
about the topic under discussion. The opinions of the respondents are used as the primary
source of information for preparing the study report.

Structured Questionnaire:

It is usually associated with the self-administered tools with items of the closed or fixed
alternative type. The respondents feel greater confidence in the anonymity of questionnaire
than in that of any interview. It places less pressure on the subject of immediate response.
These were the reasons for choosing questionnaire as one of the tools for data collection.

The questionnaire consists of two types of questions:

Close-ended questions:

The close-ended questions consist of multiple choices, which offer the respondents with a
choice of specific answers.

Open-ended questions:

An open-ended question is a question where no choices of answer are given the

respondent and the respondent is given freedom to respond according to his wish.

SECONDARY SOURCE:

Secondary source is that information that is obtained from those sources other than direct
sources and the information is collected through the mentioned ways.
 Company’s Hand book.
 Magazines and Journals
 Text books published on Human Resource Management.
 Websites and Search engines.
 Other records.

B) SAMPLE SELECTION:

A sample is known as the sub-unit of population which shares the similar features. The
number of units in the sample is known as the sample size.
 In this study a sample size of 10 was selected based on the previous studies and other past
records. Here, in this context a sample refers to the employees of the related departments
covered by the study.

After the selection of sample, the sampling was done based on convenient sampling
method.

C) ANALYSIS:

 The collected data has been coded and represented diagrammatically in the form of
pie diagrams by calculating the frequency and average. Based on this suitable
interpretations were made.

 Based on the responses obtained and the gathered data suitable recommendations
were given which can help the organization in retaining their employee

SCOPE OF THE STUDY

• The Scope of the study covers employees of all the departments in CIAL. in order to
understand their point of view with respect to Performance Appraisal.
• As CIAL is an organization with a huge presence in the Aviation sector, the analysis
of Performance Appraisal at CIAL gives a better understanding of the concept.
• The scope of the study also includes the response of the employees to the various
measures taken by the management of CIAL to make the employees comfortable at
the work place.

LIMITATIONS OF THE STUDY

 CIAL is an organization where changes are happening very frequently. Many

functions in CIAL are not yet stabilized to systematic format.

 Since the airport is a sensitive area, there are security limitations.

 Time and resources limitations.