A Project Report on

PERFORMANCE APPRAISEL SYSTEM.

With Reference to
HINDUSTAN NATIONAL GLASS & INDUSTRIES LTD.

Submitted to
SHIVAJI UNIVERSITY

For the award of

Impartial fulfillment of the requirement for award of the degree MASTER OF BUSINESS ADMINISTRATION BY Miss. Suvarna B. Chopade

Under the guidance of Prof. Mane Sir Through, The director,

Shivaji University, kolhapur. DadasahebChavan Institute of Management and Resurch Development Administration, Masur. (Malwadi)

20011-12

ShivajiUniversity, kolhapur. Dadasaheb Chavan Institute of Management and Research Development Administration, Masur. (Malwadi)

CERTIFICATE
This is to certify that Miss. Suvarna B. Chopade is a Bonafied student of this Institute studying MBA (G) II course during 2011-2012,has completed second Semester Internship Project during 10thJune,2011 to 31th Jully,2011 in HINDUSTAN NATIONAL GLASS & INDUSTRIES LTD. On the topic

PERFORMANCE APPRAISEL SYSTEM.

The Student has prepared the Internship Report under the Guidance of my , based on the information and Data collected by her of this purpose. Internal Guide Prof. Mane Sir H.O.D Director

(To be filled in by the office) Date of submission External Examiner Internal Examiner Name Name Signature Signature

Declaration
To,

The Director. Dadasaheb Chavan Institute of Management and Research Development Administration, Masur. (Malwadi) Respected Sir, I, hereby declare that the project report entitled PERFORMANCE
APPRISEL SYSTEM developed and submitted by me under the guidance of Prof. Mane.

is my original work. The empirical findings in this report are based on the data collected by me. This work has been submitted for the award of Master of Business Administration (MBA-II).

Shivaji University, kolhapur. Place- Masur. (Malwadi) Date Signature Miss. Suvarna B. Chopade MBA II (Trim-VI)

Acknowledgement
The project report is obviously not the result of my work alone. Many personalities having directly or indirectly involved, without whom this project completion would not have been possible. I convey my respectful to Prof. Jitendra Mane Sir, my guide, who is immensely contributed towards the successful completion of this project. It is his perspective guidance from inception to the end that has been largely responsible for giving me sense of direction and motivation. I also express my sincere thanks to our Director Dr. Deore Sir, all teaching and non-teaching staff of the institute for their kind co-operation. I am sincerely thankful to HINDUSTAN NATIONAL GLASS & INDUSTRIES LTD. and staff of their kind-cooperation and timely guidance. With which this report can not be completed. Also I want to express my deep sense of gratitude to all those persons who with their love and affection made this project altogether easy for me.

Place Date Miss. Suvarna B.Chopade

TABLE OF CONTENTS
PAGE NO CHAPTER 1 2 3 4 5 5 6 7 8 9 10 TITLE
INTRODUCTION RESEARCH METHDOLOGY PROFILE OF HNGIL EXECUTIVE SUMMERY PROCEDURE FOLLOWED BY HNGIL Analysis and Interpretation Findings Suggestions Limitations Bibliography Annexure

HNG PLANT LOCATIONS IN INDIA

HNGIL has six manufacturing facilities located in Rishra, Bahadurgarh, Rishikesh, Nashik,Puducherry and Neemrana. To further widen its operational presence, the company proposes to set up a plant at Andhra Pradesh, which is expected to commence production from FY13. In FY09, the companys average capacity utilization rate across plants was around 82%. The container glass industry is sensitive to freight cost. Hence, glass manufacturing units generally cater to markets in a 300-350 km radius around the plant. This gives companies with plants located pan India huge advantage as it enables a wider distribution network and reduces transportation costs. HNGIL is the only company in India to have multi -locational plants in the domestic container glass segment.

HINDUSTHAN NATIONAL GLASS & INDUSTRIES LTD

ORGANISATION PROFILE OF HNGIL:HNGIL IS THE LEADING PLAYER IN THE GLASS CONTAINER INDUSTRY :-

HNGIL enjoys a dominant position in the glass container industry. The company has a market share of 65% and enjoys significant competitive. advantages compared to other players such as lowest cost due to economies of scale, multiple manufacturing locations enabling pan India distribution, only player with a manufacturing plant in the eastern region, superior technology and strong mutual interdependence with clients. The company currently has a total capacity of around 2,760 tpd as against the industry capacity of 4,200 tpd. It has six manufacturing locations, spread across India enabling pan distribution of its products.

CLIENTS:HNGIL has a well-diversified and a strong client base, which includes United Spirits, Pernod Ricard, Diageo, Radico, SAB Miller, Pfizer, Ranbaxy, Cipla, Glaxo SmithKline, Hindustan Unilever Ltd (HUL), Dabur, Heinz, Nestle, Coca-Cola, Pepsi etc. There is strong mutual interdependence between HNGIL and its clients, enabling the company to get repeat business and ensure client stickiness.

ACQUISITION:HNGIL has been successful in acquiring sick/loss -making companies in the glass container business and making them profitable. It acquired the glass container business from wens Brockway (leading US-based glass container manufacturing company) in 2002, and turned it around within 6 months. The company, which was named ACE Glass Containers following the acquisition, had three plants situated at Rishikesh, Pondicherry and Pune. While HNGIL turned around the Rishikesh and Pondicherry plants, it closed the Pune plant as most of the assets were dilapidated. The company also acquired the glass container manufacturing unit at Nashik from L&T in 2005 and the Neemrana plant from Haryana Sheet Glass in 2007, and successful ly turned them around. These acquisitions have enabled the company grow at a faster pace and add capacities in a short span of time compared to setting up a greenfield plant.

QUALITY POLICY
Customer satisfaction has been the key to our sustained market leadership.
y Consistently provide services in time along with quality products meeting the expectations of

our valued customers at competitive prices .

y Actively pursue ever-improving quality through programs that enable all the employees to do

their job right the first time.

y Strive to achieve higher standards for environment management and energy conservation.

We strongly believe in the future of glass.

GLASS IS ENVIRONMENT FRIENDLY AND WHOLLY RECYCLABLABLE.

OBJECTIVES OF THE COMPANY

The main objective of HNGIL Customer satisfaction; Environment Friendly; Delivering enhanced quality products; Profit maximization; Creating a good brand image; Wide market coverage;

VISION OF

OMPANY

MISSION OF HNGIL
To be the first choice supplier of glass packaging in our chosen markets
HNGIL RESPONSIBILITY TOWARDS EMPLOYEES

Safe, Secured and Clean Work Environment Continuous Knowledge, Awareness and Competence up-gradation by Training Technology up-gradation for meeting the Challenges of future
HNGIL RESPONSIBILITY TOWARDS SOCIETY

Clean Environment 100% Re-Cycling product No Wastes

ORGANISATION CHART

EXECUTIVE SUMMARY
TITLE:
To Study on Performance Appraisal and its effect on employees performance HINDUSTAN NATIONAL GLASS & INDUSTRIES LTD. at

OBJECTIVES OF STUDY:
y To know the employees awareness towards performance appraisal. y To know whether performance appraisal helps in providing proper training to employee. y To know whether performance appraisal helps in maintaining satisfactory level of performance. y To provide suggestions to HR department with regard to performance appraisal format. y To know whether proper monetary and non-monetary benefits are provided to employees.

SCOPE OF THE STUDY:

The scope of the study is limited to HINDUSTAN NATIONAL GLASS & INDUSTRIES LTD. In Neemrana and the sample size is 100.
y To help each employee understand more about their role and bec ome clear about their functions. y To be instrumental in helping employees to better understand their strengths and weaknesses with respect to their role and functions in the organization. y To help in identifying the developmental needs of employees, given their role and function. y To increase mutuality between employees and their supervisors so that every employee feels happy to work with their supervisor and thereby contributes th eir maximum to the organization. y To provide an opportunity to each employee for self -reflection and individual goal-setting, so that individually planned and mon itored development takes place. y To help employees internalize the culture, norms and values of the organization, thus developing an identity and commitme nt throughout the organization. y To help prepare employees for higher responsibilities in the future by continuously reinforcing the development of the behavior and qualities required for higher -level positions in the organization; y To be instrumental in creating a positive and healthy climate in the organization that drives employees to give their best while enjoying doing so.and y To assist in a variety of personnel decisions by periodically generating data regarding each employee.

RESEARCH METHODOLOGY:
 Data Source Primary data and Secondary data
INDUSTRIES LTD.

 Area of research HINDUSTAN NATIONAL GLASS &  Research approach  Research Instrument  Sample plan  Sample unit  Sampling method
 Sample size

Survey method Questionnaire Personal Interview Respondent in HNGIL employees Convenience Sampling 100 employees in HNGIL company.

Secondary data:- HNGIL Records, Text book, Websites. .

Contents:-

 Results and discussion with graphs and charts.  Summary, conclusion, and a proposed action plan with resource requirements and projected benefits to the organization.

LITERATURE EVALUATION
Performance appraisal is the process of obtaining, analyzing, 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 what an employee does. While in some instances these appraisal processes are structured and formally sanctioned, in other instances they are an informal and integral part of daily activities. Thus, teachers evaluate the performance of students; bankers evaluate the performance of creditors etc.In social interactions, performance is conducted in a systematic and planned manner to achieve a widespread popularity in recent years .
MEANING:

Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance. Performance appraisal is a process of evaluating work performance of the personal so as facilitate individual & organization effectiveness. Under performance appraisal we evaluate not only the performance of a worker but als o his potential for development . Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development.

IMPORTANT FEATURES OF PERFORMANCE APPRAISAL

y Performance appraisal is the systematic description of an employees job relevant strengths and weaknesses. y The basic purpose is to find out how well the employee is performing the job and establish a plan of improvement. y Appraisals are arranged periodically according to a definite plan. y Performance appraisal is not job evaluation. Performance appraisal refers to how well someone is doing the assigned job. Job evaluation determines how much a job is worth to the organization and, therefore, what range of pay should be assigned to the job. y Performance appraisal is a continuous process in every large -scale organization.

Aims of performance appraisal

y Give feedback on performance to employees. y Identify employee training needs. y Document criteria used to allocate organizational rewards. y Form a basis for personnel decisions-salary (merit) increases, promotions, disciplinary actions, etc. y Provide the opportunity for organizational diagnosis and development. y Facilitate communication between employee and administrator. y Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements.

OBJECTIVES OF PERFORMANCE APPRAISAL

y To review the performance of the employees over a given period time. y To judge the gap between the actual and the desired performance. y To help the management in exercising organizational control. y Helps to strengthen the relationship and communication between superiorsubordinates and management-employees. y To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. y To provide feedback to employees regarding their past performance y Provide information to assist in the other personal decision in the organization. y Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. y To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. y To reduce the grievances of the employees.

APPRAISAL STEPS IN PERFORMANCE:

Establishing job standards

Designing an appraisal programs

Appraise performance

Performance

Use appraisal data for appropriate purpose

Process of performance appraisal

setting performance standerds

taking corrective standerds

communicating standerds

discussing result

measuring standerds

comparing standerds

NEED FOR PERFORMANCE APPRAISAL

y Provide information about the performance ranks basing on which decision regarding salary fixation, confirmation, promotion, transfer and demotion are taken. y Provide feedback information about the level of achievement and behavior of subordinate. This information helps to review the performance of the subordinate, rectifying performance deficiencies and to set new standards of work, if necessary. y Provide information, which helps to counsel the subordinate. Provide information to diagnose deficiency in employee regarding skill, knowledge, determine training and developmental needs and to prescribe the means for employee growth provides information for correcting placement. y Develop positive relation &reduce grievances. y Provide coaching, counseling, career planning to subordinate.

Bene it o per ormance apprai al

y Motivation and satisfaction:

Performance appraisal provides employees with recognition for their work efforts. The power of social recognition as an incentive has been long noted. In fact, there is evidence that human beings will even prefer negative recognition in preference to no r ecognition at all.
y Salary Increase:

Performance appraisal plays a role in making decision about salary increase. Normally salary increase of an employee depends upon on how he is performing his job. There is continuous evaluation of his performance either formally or informally. This may disclose how well an employee is performing and how much he should be compensated by way of salary increase.
y Promotion:

Performance appraisal plays significant role where promotion is based on merit and seniority. Performance appraisal discloses how an employee is working in his present job and what his strong and weak points are. In the light of these, it can be decided whether he can be promoted to the next higher position.
y Training and Development:

Performance appraisal tries to identify the strengths and weakness of an emp loyee on his present job. This information can be used for devising training and development programs appropriate for overcoming weaknesses of employees.
y Feedback:

Performance appraisal provides feedback to employees about their performance. A person works better when he knows how he is working. This works in two ways, firstly, the person gets feedback about his performance. Secondly, when the person gets feedback about his performance, he can relate his work to the organizational objectives.

y Pressure on Employees :

Performance appraisal puts a sort of pressure on employees for better performance. If the employees are conscious that they are being appraised in respect of certain factors and their future largely depends on such appraisal.

y Recruitment and induction:

Appraisal data can be used to monitor the success of the organizations recruitment and induction practices. For example, how well are the employees performing who were hired in the past two years? Appraisal data can also be used to monitor the effectiveness of changes in recruitment strategies. By following the yearly data related to new hires.it is possible to assess whether the general quality of the workforce is improving, staying steady, or declining.

Apprai al: Limitation o per ormance

1. Halo effect:

The rater may base the entire appraisal on the basis of one positive quality or trait which was assessed earlier. For instance, if a person is evaluated on one trait emotional ability and if he scores very high then the rater may also give him high score s in respect of other traits, such as intelligence, creativity and so on, even without assessing such characteristics of that person.
2. Horn effect:

At times, the raters may evaluate on the basis of one negative quality or feature perceived. For instance, the rater may that he is lazy at work. This result in overall lower rating employee concerned.
3. Central tendency :

There are instances, where a rater assigns mostly middle range scores or values to all individuals being appraised extremely high or low evaluations are avoided. Average scores are given to everyone. Those who perform well are given average scores and those who do not perform well are also given average scores .
4. Spillover effect :

In this case, the present performance appraisal is greatly influenced by past performance. a person who has not done good work in the past is considered to be bad at work in the present as well.
5. Latest behavior:

Rating is influenced by the most recent behavior ignoring the commonly demonstrated behavior during the entire appraisal period.
6. Personnel bias:

The way an appraiser personally feels about a rate may drastically affect the appraisers Objectivity. Again, if the rater has good relations or connections with the rate, he may always tend to give higher scores to the rate, even though the rate does not deserve such high scores. Thus outright bias may lead to favored treatment for some employees .

7. Paper work :

Some supervisors complain that performance appraisal is pointless paper work. They complain so, because many -a-times, performance appraisal reports are found only in the files rather than serving any practical use.
8. The problem of appropriate technique :

There are a number of evaluation techniques. Some techniques may be easier and economical to use. May time consuming, inconvenie nt and costly. Some appraisal may select the most convenient and simple technique rather than the more suitable but time consuming or inconvenient technique.
9. Fear of spoiling relations :

Performance appraisal may also affect superior -subordinate relations.as appraisal makes the superior more of judge rather than a coach. The subordinate may look upon the superior with a feeling of suspicion and mistrust.
10. First impression:

Raters may identify some specific qualities of the ratee and quickly from an overall impression about him.

METHODS OF PERFORMANCE APPRAISAL

TRADITIONAL METHODS
1. GRAFIC RATING SCALE

MODERN METHOD 1. BEHAVIORALLY ANCHORED SCALES 2. HUMAN RESOURCE RATING

2. RANKING METHOD 3.PAIREDCOMPARISON METHOD 4. CHECKLIST METOD 5.CRITICALINCIDENT METHOD 6.ESSAY OR FREE FORM

ACCOUNTING 3. MANAGEMENT OBJECTIVES ( MBO) 4. PSYCHOLOGICAL APPRAISAL 5. ROLE ANALYSIS 6. BALANCED SCORECARD BY

APPRAISAL
7. GROUP APPRAISAL 8. CONFIDENCIAL REPORT

I.TRADITIONAL METHODS:
1. Graphic rating scale:

Graphic rating scales compare individual performance to an absolute standard. In this method, judgments about performance are recorded on a scale. This is the oldest and widely used technique. This method is also known as linear rating scale or simple rating scale. Rating scales are of two types continuous rating scale and discontinuous scale the appraiser assigns the points to each degree.
2. Ranking Method:

Under this method the employees are ranked from best t o worst on some characteristics. The rater first finds the employee with the highest performance and the employees with the lowest performance in that particular job category and rates the former as the best and the latter as the poorest. Then the rater se lects the next highest and next lowest and so on until he rates all the employees in that group.
3. Paired Comparison Method:

This method is relatively simple. Under this method, the appraiser ranks the employees by comparing one employee with all other employees in the group, one at a time.
4. Checklist Method:

In the case, alist is prepared containing various work related statements such as quality of work, speed, etc. the rater indicates the individual performance by checking ye s or no squares to various statements. The main advantage is its simplicity, convenience, less time consuming, and less expensive.
5. Critical Incident Method:

In this method, the rater records important incidents involving the ratee. If the rate performs well in such incidents, then he is given high scores and vice versa. For instance, in a particular incident in which a salesmans performance may be given higher score.

6. Easy or free from appraisal:

This method requires the manager to write a short essay describing each employees performance during the rating period. This format emphasizes evaluation of overall performance, based on strengths and weaknesses of employee performance, rather than specific job dimensions .
7. Group Appraisal:

Under this method, an employee is appraised by a group of appraisers. This group consists of the immediate supervisor of the employee, to other supervisors who have close contact with the employees work, manager or head o f the department and consultants.
8. Confidential Reports:

This is an old and traditional method of appraising employees. areport on the subordinates strengths and weaknesses. The Confidential Reports is used for a variety of personnel decisions such as transfers, promotions, etc. This is a poor method of performance appraisal, as it does not provide proper feedback to the employees .

II.MODERN METHODS
1. Behaviorally Anchored Rating Scales:

The Behaviorally anchored rating scales (BARS) method combines elements of the traditional rating scales and critical incidents methods .it is variation of simple rating scale.in this scale, the behavior or attitude towards the job is appraised. Employee who have a positive attitude towards the job may make every effort to upgrade and updatethere knowledge and skill to handled there activity. Such employee would be given higher performance appraisal .
2. Human Resource Accounting:

Human resource accounting deals with cost of and contribution of human resources to the organization. Cost of the employee includes cost of manpower planning, recruitment, selection, induction, placement, training, development, wages and benefits etc. employee contribution is the money value of employee service provided to the organization. Employee performance can be taken as positive when contribution is more than the cost and vice versa.
3. Management by Objectives :( MBO)

MBO is a process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individuals major are a of responsibility in terms of results expected of him, and use these measures of guided for operating the unit and assessing the contribution of his members.
4. Psychological Appraisal:

This appraisal is conducted to assess the employee potential. It consist of i. in -depth interviews, ii.psychological tests, iii.consultations and iv. Discussions with the employee, discussion with the superior, sub-ordinates and peers, and v. reviews of other evaluations.
5. Role Analysis:

It is process analyzing role of the manager.in relation to roles of other managers or members who are attached by his performance. The role set members can conduct performance appraisal of the focal role. The focal rol e can make necessary changes to improve his performance

6. Balanced Scorecard:

To evaluate the organizational and employee performance in Performance appraisal management processes, the conventional approach measures the performance only on a few parameters like the action processes, results achieved or the financial measures etc .. The balanced scorecard provides a list of measures that balance the organizations internal and process measures with results, achievements and financial measures.
The four Perspectives recommended by Kaplan and Norton for the managers to collect information are:
y

The financial measures

The financial measures include the results like profits, increase in the market share, return on investments and other economic measures as a result of the actions taken.
y

The customers measures

These measures help to get on customer satisfaction, the cu stomers perspective about the organization, customer loyalty, acquiring new customers. The data can be collected from the frequency and number of customer complaints, the time taken to deliver the products and services, improvement in quality etc.
y The internal business measures

These are the measures related to the organizations internal processes which help to achieve the customer satisfaction. It includes the infrastructure, the long term and short term goals and objectives, organizational process es and procedures, systems and the human resources.
y

The innovation and learning perspective :

The innovation and learning measures cover the organizations ability to learn, innovate and improve. They can be judged by employee skills matrix, key competencie s, value added and the revenue per employee.

For each perspective of the following things are measured :

y

Objectives : The goals and the targets to be achieved Measures: The standards which will be used to measure the actual performance and

the progress.
y

Action plans : the initiatives taken and the course of action to be followed to achieve

the objectives

BENEFITS OF BALANCED SCORECARD:

y The benefits of the balanced scorecard approach in measuring performance are: y Gives the complete picture of the employee as well as the organizational performance. y It guides users in determining the critical success factors and performance indicators. y Strategic review or analysis of the organizational capabilities and performance. y Focusing the whole organization on the few key things needed to create breakthrough performance. y Integrating and directing the performance and efforts from the lowest levels in the organization to achieve excellent overall performance.

IN HNGIL PERFORMANCE APPRAISAL SYSTEM

Performance appraisal system in HNGIL is doing by two types 1) By Traditional Method. 2) By Modern Method.

1) BY TRADITIONAL METHOD

In HNGIL performance appraisal is doing by traditional method is adopted to e valuate the performance for worker employee, they are measuring their performances once in the year for that individual sectional head/department head is measuring there performance of their workers by considering following points:
APPOINTMENT DETAILS y NAME OF THE EMPLOYEE y DEPARTMENT y DESIGNATION y DATE OF JOINING y PERFORMANCE APPRAISAL PERIOD (1STAPRIL TO 31ST MARCH)

I) PARAMETERDISCRIPTION:

1) Adoptability of work 2) Regularity /attendance 3) Cooperation 4) Responsibility 5) Housekeeping

II) Skill:

1) Job knowledge 2) Initiative drive 3) Productivity 4) Accuracy in work 5) Adherence to instruction 6) Communication 7) Promptness 8) Safety consciousness 9) Integrity 10) Opinion about suitability for conformation/continuation of training/temporary /probation period

By considering this point sectional head is giving the rating as:

a) Excellent b) Good c) Satisfactory d) Poor Apart from that the sectional head gives comments Any achievement during that year. Also he is recommending that if training program is needed to employee to develop his skill for better result. And finally department head /sectional head putting their remarks & forwarding to personnel & administration. And then personnel and administration department head is going through appraises personal records and putting the remarks. And same is forwarding for final approval toward the vice president .

II) MODERN METHOD:

In HNGIL current year launch of the performance management system in the Neemrana plant,for to evaluate performanceof thestaff employees. The new Performance management system is establishing a uniform and consistence performance manageme nt process across the organization. It is designed to effectively manage individual and team performance and ensure alignment with HNGILs vision and objective.

PERFORMANCE MANAGEMENT CYCLE

Business planning for HNGIL for the coming year

Training and developmental opportunities

sssss

Grievance redressal
Individual target setting for the coming appraisal year Final rating post moderation

Ongoing coaching and feedback On performance

Year-end review & overall performance rating

Mid- year review (without performance rating)

Key tage in the per ormance management cycle

Performance cycle is the period starting from April 1 st of the year to March 31 st of subsequent year for every employee. The performance management cycle would comprise three stages:  Target Setting  Mid-Year Review  Year End Appraisal

Stage 1: Target Setting: Role of an Appraisee:

 Define Target for key performance indicators (KPIs) for the performance year .  Prioritize KPIs in order of importance by giving higher weightage to more important KPIs  Detail out action plan  Understand the desired proficiency level for each competency  Submit filled-up target setting form to the appraisal
Role of an Appraiser:

 Review the weightages and target set by the appraise and suggest changes  Ensure cascade from department level objectives and target  Ensure adequate degree of stretch in the targets
Role of reviewer:

 Ensure the cascade from organization /unit objective and targets  Ensure consistency and fairness with regard to target setting across employees (degree of stretch etc.)

Stage 2: Mid-Year review:

Role of appraise:

 Assess own performance on KPIs  Record supporting incidences against identified competencies  Discuss mid-year performance with the appraiser highlighting Key resource requirements Areas of concern(If any) Change in action plan required  4. Request joint discussion with appraiser and reviewer for target revision.
Role of an Appraiser:
1. 2.

Guide the appraise to do an effective self-appraisal Providing constructive feedback and counseling to the appraise highlighting

 Feedback on performance based on mid -year result  Display of desired competencies  Change in action plan required  Key improvement areas

3. Approve and validate changes in weightages/targets in appraisees scorecard in discussion with reviewer(in exceptional circumstances) 4. Submission of mid-year review from HR(post validation of the reviewer in case of any changes )
Role of a reviewer:

1. Review and validation of changes in weightages/targets in appraisees scorecard in discussion with the appraiser(in exceptional circumstances)

Stage 3: Year End Appraisal:

Role of an Appraisee:

1. Assess own performance on KPIs 2. Record supporting incidences against identified competencies 3. Discuss year-end performance with the appraiser
Role of an Appraiser: 1. Guide the appraise to do an effective self-appraisal

2. Providing constructive feedback and counseling to the appraise highlighting  Feedback on performance based on year end result s  Display of desired proficiency levels on competencies  Articulation of appraisees key strengths and areas of dev elopment  Development plan for the appraisee

3. Calculation of overall performance rating and submission of the same to the reviewer

Role of an Reviewer:

 Validation and finalization of overall performance rating given to the appraisee and submission of the same for moderation

QUESTIONNAIRE
TOPIC: A study on performance appraisal and its effect on employees performance

1. Do you know performance appraisal system in your organization? a. Yes b. No

2. Are you aware of the performance appraisal system in your company? a. Yes b. No 3. Are performance appraisal goals (Key Result Area s or Key Performance Indicators)clearly communicated to you at the start of the appraisal year? a. Yes b. No 4. Do you have a performance review discussion on your performance appraisal done by your superior? a. Yes b. No

5. Whether performance appraisal helps you to reach the goals? a. agree b. disagree c. neither agree nor disagree 6. Goals are set and agreed by prior discussion with your manager? a. agree b. disagree c. neither agree nor disagree 7. Salary, increment are received based on employees performance? a. agree b. disagree c. neither agree nor disagree

8. The promotion prospects in your organization are based on ratings given by your superior? a. agree b. disagree c. neither agree nor disagree 9. The performance appraisal goals set for you are realistic, achievable, and measurable? a. agree b. disagree c. neither agree nor disagree 10. Weather training provided has helped reaching your target? a. agree b. disagree c. neither agree nor disagree 11. Annual appraisal is effective in measuring your performance? a. agree b. disagree c. neither agree nor disagree 12. Performance ratings are without any bias? a. agree b. disagree c. neither agree nor disagree 13. Has your appraiser provided feedback of your performance? a. agree b. disagree c. neither agree nor disagree

14. Hard work is compensated with the following in your company? a. better pay and fringe benefits c. training b. job promotion d. secured employment

15. Please prioritize the following factor that you think will affect your performance? a. manager likelihood c. your performance e. qualification 16. Are you satisfied with the performance appraisal process in your organization? Yes No b. job skills d. length of service

16,a. If no, then please give your suggestions Suggestions:

ANALY i ?

AND INTERPRETATION i l i i i i L

FR Yes No Tot l 71 29 100

PERCENT 71 29 100

VALID PERCENT 71 29 100

C M LATIVE PERCENT 71 100

80 70
60

50 40
30 Series1

20 10
0

Yes

No

i Through the survey I have analyses that out of 100 respondents 71% of the employees are said yes for performance appraisal system is required in the organi ation. And 29% of the employees are said performance appraisal is not required in the organi ation.

Are you aware of the performance in HNGIL company? VALID FREQUENCY PERCENT PERCENT Yes 69 69 69 No 3 3 3 Total 100 100 100

CUMULATIVE PERCENT 69 100 100

70 60

50
40 30

20
10

0
Yes No

i Through the survey I have analyzed that out of 100 respondents 69% of the employees are said yes for awareness of performance appraisal system. And 31% said they are not aware about the performance appraisal.

Series1

Has your appraiser provided feedback of your performance?

FREQUENCY PERCENT VALID PERCENT

CUMULATIVE PERCENT

Agree Disagree Total

42 58 100

42 58 100

42 58 100

42 58 100

60

50

40 Series1 30

20

10

Agree

Dissagree

i Through the survey I have analyzed that out of 100 respondents 58% of the employees are only Disagree and 42% of the employees are Agreethat their appraiser has provided their feedback for their performance.

Are em?

i ied i

e exi i

reward

FREQUENCY Agree Disagree Neither Agree/Nor Disagree Total 36 % 40 % 24 % 100 %

PERCENT 36 % 40 % 24 % 100 %

VALID PERCENT 36 % 40 % 24 % 100 %

CUMULATIVE PERCENT 36 % 40 % 24 % 100 %

100

90 80 70 60 50 40 30 20 10 0
AGREE DISSAGREE NEITHER AGREE/NOR DISSAGREE TOTAL

Series1

erpretati

Through the survey I have analyzed that out of 100 respondents majority of the employees are satisfied with their existing reward system. 24% employees are neither agree nor disagreed and only 16% of the employees are not satisfied with their existing reward system.

Hard work is compensated with the following in HNGIL company?

FREQUENCY PERCENT
Better pay Job promotion Training Secured employment Total

52 23 15 10 100

52 23 15 10 100

VALID PERCENT 52 23 15 10 100

CUMULATIVE PERCENT 52 23 15 10 100

60 50 40 30 20 10 0
Better pay Job promotion Training Secured employment

Series1

terpretati Through the survey I have analyzed that out of 100 respondent s majority of the employees are given preference for better pay and fringe benefits for their hard work. 24% of

the employees are to the job promotion and only 12% to the better pension that employees are their hard work is compensated in their organization.

please prioritize the following factor that you think will affect your performance in HNGIL company?
FREQUENCY
Manager likelihood Job skills Your performance Length of service Qualification Total

PERCENT 8 23 42 21 6 100

VALID PERCENT 8 23 42 21 6 100

8 23 42 21 6 100

CUMULATIVE PERCENT 8 23 42 21 6 100

45 40 35 30 25 20 15 10 5 0

Series1

terpretati

Through the survey conducted out of 100 respondents majority of the employees are said to their performance. And 23% of the employees are given the company will show their performance based on their job skill. And only 6% of the employees are considering their performance based on their qualification.

Findings

y In a survey sample among 100 respondents 31% of the respondents are not aware about performance appraisal. y 71% respondents agreed that performance appraisal system is required in the organization. y 51% of the employees respond for performance appraisal helps to reach their goals. y 67% of the respondents agreed for setting their goals and agreed by prior discussion with their manager. y 67% of the employees agreed for their performance standards are clear discussed and documented. y 31% of the employees dont know how at what base they received salary, increment and bonus. y 57% of the respondents agreed for based on their ratings promotion has given by the superior. y 31% of the respondents agreed that performance appraisal helps in identifying the type of training required. And 30% of the respondents are strongly agreed for performance appraisal helps in identifying the type of training required. y 32% of the respondents are agreed as well as d isagreed for supervisors provided proper training on how to conduct the appraisal process. y 63% of the employees are agreed that by providing the training has helped to reach the goals. y 36% of the respondents are agreed for annual appraisal is effective to measuring their performance. And 29% neither agree no disagreed. y 48% of the respondents agreed that performance appraisal will help to recognize their efforts. y 54% of the respondents agreed for performance ratings are without any biases and 46% of the respondents are strongly agreed.

y 58% of the respondents agreed that appraiser provided feedback of their performance. y 40% of the respondents agreed for satisfied with their existing reward system. And 24% they are neither agree nor disagreed. y 29% of the respondents have given more preference to the better pension and fringe benefits for their hard work and 24% of the respondents have given preference to the job promotion for their hard work

Recommendation

1. Organization will have to conduct training program, with which they should create on awareness among the employees about performance appraisal system. 2. There are 31% of the employees who dont know whether salary, increment and bonus received are based on their performance. Therefore organization should clearly disclose their procedure to the employees. 3. There is a contrast that 32% of the employees are agreed and disagreed on training process conducted for appraisal process. So organization should provide proper training to the employees. 24% of employees are not satisfied with their existing reward system. Thereforeorganizations try to fulfill their demands to satisfy the reward system.

Conclu ion

Performance appraisal system is a system of employees performance within the organization. Performance appraisal is a method of evaluating the behaviorof employees in the workspot, normally including both the quantitative and qualitative aspects of job performance. Performance refers to the degree of accomplishment of the tasks that make up an individuals job. It indicates how well an individual is fulfilling the job demands. Under performance appraisal we evaluate not only the performance of a worker but als o his potential for development.

HNGIL Limited:
Through the survey, I have conclude that In HNGIL number of employees are aware about performance appraisal system but who are no aware about performance appraisal HNGIL has to give study or training about performance appra isal. In that organization there is no any bias among the employees. There is cordial relation between employer and employees if any problems are faced by the employee, it is immediately brought to light & solved by the supe rvisor.
Contents:  Appendix  Questionnaire  Bibliography

Bibliography

o Website:
y www.google.com. y www.wikipedia.org.
y

WWW.HNGIL. ORG