Submitted By:
Student Name: Dharmender Kataria Enrollment No.:
Performance Appraisal
CERTIFICATE
This is to certify that Mr. Dharmender Kataria, a student of Global Institute of Technology & Management, Farukh Nagar, Gurgaon has completed project work on EVALUATION OF THE PERFORMANCE APPRAISAL under my guidance and supervision.
Certify that this is an original work and has not been copied from any source.
Place : Date :
Performance Appraisal
STUDENTS DECLARATION
I, Dharmender Kataria here by declare that the project work titled Evaluation of the Performance Appraisal System in HHPL is the original work done by me and submitted to the Global Institute of Technology & Mnagement, Gurgaon in partial fulfillment of
requirements for the award of MBA in Human Resource Management (Area of Specialization) is a record of original work done by me under the supervision of Mr. Sanjeev Kumar (HR Head) of HHPL.
Performance Appraisal
ACKNOWLEDGEMENT
It gives me immense pleasure to convey my sincere thanks to college Faculty of Global Institute of Technology &
Management, Gurgaon who approved my project synopsis and extended full and valuable support and encouragement in providing me with this superb opportunity to participate and learn through this highly informative project work.
Performance Appraisal
TABLE OF CONTENTS
EXECUTIVE SUMMARY...........................................................6 Theoretical Perspective...............................................................12 OBJECTIVE OF THE STUDY...................................................34 Research Methodology................................................................36 PERFORMANCE APPRAISAL SYSTEM IN HHPL, GURGAON...............................................................41 ANALYSIS AND INTERPRETATIONS OF DATA................45 SWOT ANALYSIS.....................................................................84 SUMMARY AND FINDINGS...................................................87 RECOMMENDATIONS............................................................91 CONCLUSION..........................................................................97 Appendices and Annexure:..........................................................98
Performance Appraisal
EXECUTIVE SUMMARY
Today HRM is an evolving branch of Management. It looks after the HR planning, Job Design, Job analysis, Training and development compensation system, motivation, safety, Industry Relatives etc. Organization exists to achieve its goals set by their
stakeholders, in the same time; organization should keep individual objectives and their development in mind. The assessment of how successful employees have been at meeting their individual goals, therefore, becomes a critical part of HRM. This led organizations to the area of performance appraisal. AIM There are three purposes of performance appraisal:
Performance Appraisal
Performance Appraisal
Performance Appraisal
There is, says Dulewicz (1989), "... a basic human tendency to make judgments about those one is working with, as well as about oneself." Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitrarily. The human inclination to judge can create serious motivational, ethical, and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgments made will be lawful, fair, defensible and accurate. Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether the salary or wage of an individual employee was justified.
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Performance Appraisal
The process firmly linked to material outcomes. If an employee's performance found to be less than expected, a cut in pay would follow. On the other hand, if their performance found to be better than the supervisor expected, a pay rise in order. Little consideration, if any, was given to the developmental possibilities of appraisal. It was felt that a cut in pay, or a rise, should provide the only required momentum for an employee to either improve or continue to perform well. Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed.
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Performance Appraisal
MODERN APPRAISAL Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (quarter, semi-annual or annual), in which the work performance of the subordinate is observed and discussed, with a view to identifying weaknesses, strengths as well as opportunities for improvement and skills developments. In most of the organizations, appraisal results are used directly or indirectly, to determine reward outcomes. The appraisal results are used to identify the better performing employees who should get the majority of available merit, pay increases, bonuses, and promotions. By the same token, appraisal results are used to identify the under performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay.
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Performance Appraisal
Theoretical Perspective
Objectives of Performance Appraisal: Objective of Performance appraisal is to 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 objectives are explained in the following points: SALARY INCREASE: Performance appraisal plays an
important role in making decision about salary increment. The increment in the salary depends on how the employee performs the job, and there is a continuous assessment of employees performance formally or informally. In small organizations as there is direct interaction between the superiors and the subordinate, performance appraisal can be an informal process, but in large organizations or in case of expatriate (HCN, PCN, TCN) where direct interaction hardly exists the performance appraisal process is formal.
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Performance Appraisal
PROMOTION:
Performance
appraisal
reveals
how
an
employee is working in present job and what are their strengths and weaknesses. In the light of these, it can be decided whether the individual can be promoted to the next higher position and what additional training will be necessary for employee. Similarly, performance appraisal can be used for transfer, demotion, and discharge of an employee. TRAINING AND DEVELOPMENT: - Performance appraisal tries to identify the perfection of an employee on the present job. This information can be to used for formulate Training of & the
Development employee.
program
overcome
weakness(s)
PRESSURE ON EMPLOYEES: - Performance appraisal puts some sort of pressure on employees for the better performance. If the employees are conscious that they are being appraised in respect of certain factors and their future growth depends on these appraisals, they tend to have positive and acceptable behavior in this respect. Thus appraisal can work automatically as a control device.
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Performance Appraisal
SATISFACTION appraisal
THROUGH feedback
FEEDBACK: to
provides
employees
performance. An employee can work better if an appropriate and timely feedback is provided for their current assignment. Satisfaction level of employees can increase if they know how their efforts are contributing to achieve the organizational objectives.
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Performance Appraisal
There are various methods of performance appraisal. Every organization may have its own appraisal system. It may be informal or formal, however in any case performance appraisal system is of two types:a)
b)
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A. APPRAISAL BASED ON TRAITS Appraisal based on traits and behavioral pattern shown in job performance emphasizes various traits which the appraisee possesses and the behaviors he adopts in performing his job. The various methods of performance appraisal based in traits are following:I. II. III. IV. V. VI. RANKING METHOD PAIRED COMPARISON METHOD GRADING METHOD FORCED CHOICE METHOD CHECKLIST METHOD CRITICAL INCIDENT METHOD
I.
and the simplest methods of appraisal in which a person is ranked against others on the basis of certain traits and characteristic. But since differences in ranks do not indicate absolute or equal differences of ability between individuals, the method has limited value for performance appraisal.
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II.
PAIRED COMPARISON METHOD: - In this method, each person is compared with other persons taking only one trait at a time. Usually, only one trait overall suitability to perform the job is considered. The rater puts a tick mark against the name of the person whom he/she consider better of two and final ranking is determined by the number of times that person is judged better than others.
III.
GRADING METHOD: - In this method certain categories of performance or abilities are defined in advance and persons are put in particular category depending on their traits and characteristics. Such categories may be definitional like outstanding, good, average, poor, very poor or may be in term of letter like A,B,C,D,E etc. with A indicating the best and E indicating the poor. The actual performance of the employees is measured against these grades. This method is generally useful for promotions based on performance. This method however suffers from one limitation that the rater may rate most of the employees at higher grades.
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Performance Appraisal
IV.
choice- rating method contains a series or group of statements and the rater checks how effectively the statements describe each individual.
V.
CHECKLIST
METHOD:
In
the
checklist
method of the appraisal the rater prepares appraisal report by answering a series of questions related to the appraisee. These questions are related to the behavior of the appraisee concerned. When the checklist is complete, it is send to the personnel department for further processing. The personnel department then calculates the total scores, which show the appraisal result of the employees. This method appears to be easy to handle if proper framework of questions is prepared for different categories of employees.
VI.
In
this
method
incidents incidents
associated
Performance Appraisal
prepared. b. A group of experts then assigns scale values to them depending on the degree of desirability for the job.
c. Finally, a checklist of incidents, which defines
good or bad employees, is prepared. The rater is given this checklist for rating. The basic idea behind this rating is to apprise the people who can do well in critical situations because in normal situations, most employees work alike.
VII.
GRAPHICS SCALE METHOD: - Also known as linear rating scale is the most commonly used method of performance appraisal. In this method a printed appraisal form is used for each appraisee. The form contains various employees characteristics and his job performance. Various Characteristics include initiative, leadership, dependability, co
cooperatives, enthusiasm,
creditability,
analytical
ability, decisiveness, emotional maturity etc. The rating is done on the basis of scale that is in
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Performance Appraisal
continuum. The degree of quality is measured on a scale, which can vary from three points to several points. Some organizations use numbers in order to avoid the tendency of the rater to tick mark the central point. This method of the employees but is not free from personal bias.
VIII.
FIELD REVIEWS METHOD: - In the field review method, employees are not appraised by their direct superiors but by another person. Usually from personnel department. The rater in this case
appraises the employee on the basis of his records of output and other quantitative information such absenteeism, late coming etc.
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B. APPRAISAL BASED ON OBJECTIVES / RESULTS: The performance appraisal is also done by comparing the actual results with the objectives formed by the company. The basic idea behind this method is that the organizations are concerned with the achievement of objectives through the contributions of individual mangers rather than on the basis of traits.
The method of appraisal by objectives is:MANAGEMENT BY OBJECTIVES (MBO): - This method has been evolved by PETER DRUCKER. MBO is potentially a powerful philosophy of managing and an effective way for operationalizing the evaluation process. It seeks to minimize external controls and maximize internal motivation through joint goal setting between managers and subordinate. The objective is to change behavior & attitude towards getting the job done. It is a result oriented management system & philosophy that stresses goal rather than methods. It provides responsibility & accountability and recognizes that employees have needs for achievement and self-fulfillment.
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SETTING
GOALS:
Top
managers
formulate
the
overall
organizational goals and plans, and then works with middle managers to develop goals for their organizational divisions or units. In turn, middle managers work with first-line managers to set goals for their departments or groups. During this process, managers and employees at all levels, in collaboration with their supervisors, also set individual goals for performance.
PLANNING ACTION: Managers determine exactly how their individual and group goals will be accomplished. During action planning, managers decide on the "who, what, when, where,
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and how" details needed to achieve each objective. Managers also prepare a schedule for the action plan to ensure that goals are reached on time, and this schedule is reviewed when individual performance is being evaluated.
IMPLEMENTING
PLANS:
Once,
managers
have
made
commitment to achieve specific goals and have received approval for their plans, the third step is implementation. To control their own performance, managers must be allowed to implement their plans in their own way. This element of selfcontrol allows managers to channel their expertise for the benefit of the organization, while allowing them to develop their professional skills fully as they tackle the challenges of implementation.
REVIEWING PERFORMANCE: In the last step of the MBO process, managers periodically review the performance of the employees they supervise and evaluate how well the plans are working in achieving group and individual goals.
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Performance Appraisal
the immediate supervisor is probably best able to relate the individuals objectives. Peers: - In some jobs such as outside sales, expatriate (PCN, HCN, TCN), law enforcement and teaching, the immediate supervisor may observe a subordinates actual job performance rarely (and indirectly thru written reports). Here judgement of peers play important role. However, there is a danger of potential bias. Subordinates: - Appraisal by subordinates can be useful input to the immediate development. Subordinates know first hand the extent to which the supervisor actually delegates, how well he communicates, the type of leadership he has and the extent to which he or she plans and organizes. Self appraisal: - On one hand it improves the rates motivation and moral, on the other it tends to be more lenient, less variable and biased. The evidence on the accuracy of self assessment is fairly complex. In industry it is seen that feed back is taken from various sources peers, subordinates, superiors etc. Some companies have gone one step ahead in taking feedback form the
25
performing
to
department
and
organizations
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customers, stakeholders and integrating it into the performance management process. Such feedbacks are also known as 360 degree appraisal.
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In this model job expectations are defined in terms of what results have to be achieved. This model doesnt have a long term focus and cant be used for employees development and career path planning.
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360 degree appraisals are a powerful developmental method and quite different to traditional manager-subordinate
appraisals (which fulfil different purposes). As such a 360 degree process does not replace the traditional one-to-one process - it augments it, and can be used as a stand-alone development method. 360 degree appraisals involve the appraisee receiving feedback from people (named or anonymous) whose views are
considered helpful and relevant. The feedback is typically provided on a form showing job
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Performance Appraisal
scoring or value judgement system. The appraisee should also assess themselves using the same feedback instrument or form. 360 degree respondents can be the appraisee's peers, up-line managers/execs, subordinate staff, team members, other staff, customers, and suppliers - anyone who comes into contact with the appraisee and has opinions/views/reactions of and to the appraisee. Numerous systems and providers are available - I wouldn't recommend any in particular because my view about this process is that you should develop a process and materials for your own situation, preferably involving the appraisees in this, which like all participative approaches, often works well.
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BARRIERS IN PERFORMANCE
There are barriers, which work against the effective appraisal system. Identification of these barriers is essential, so that suitable measure may be adopted to reduce their impact to a possible minimum level. These barriers can be grouped in three categories, they are
a. Personality Conflict Personality conflict between the
employee and the supervisor cause the leader to make an inaccurate assessment of the employees contribution.
b. Halo or Horn Effect An assumption on the part of the
supervisor that because the employee was good at one thing, they will be good at another, or vice versa.
c. Tendency Error There are two kinds of tendency errors.
Central tendency is when the supervisor tends to see everything as average, such as a 3 on a 5-point scale. Leniency is another tendency error where the supervisor tends to see the employee only in a positive light.
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factors in common between the supervisor and the employee such as social or religious similarities.
e. Contrast Effect Occurs when comparing the skill of the
employee with the skill of another employee which results in an unfair judgment of the first employee.
f. First
without observation over time. This can be both positive and negative based on impression that is created.
g. Political Error Factors other than performance affect
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TRAINED APPRAISERS: - The appraisers should be well trained so that they may be able to rate the ratees in a more accurate and developed method rather than employing the old traditional and less accurate methods. They should also be trained to avoid errors such as halo-errors, constant rating and so on.
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POST APPRAISAL: - After appraisal is completed, a post appraisal interview should be conducted to let the employees or the ratees know about their evaluation and they can know their shortcomings and can take measurers to improve them. REWARDS FOR ACCURATE APPRAISERS: - Some rewards should be given to the appraisers who have done appraisals accurately. When the rewards will be given they would turn positive towards the appraisal system. MULTIPLE RATERS: - Instead of only one rater or appraiser completing the appraisals, multiple raters should be involved in the appraisal system. Due to the presence of a group of raters ratings can be done more effectively. In the case of only one rater it would be difficult to avoid distortions whereas in the presence of a group they can be avoided to a greater extent.
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Performance Appraisal
To know the present system of performance appraisal. To know the extent of effectiveness of the appraisal system.
To identify and know the area for improvement in the appraisal system.
To suggest certain measurers for further improvement in the current system. To know the attitude of employees towards the
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Performance Appraisal
To know the effectiveness of performance appraisal system being adopted by HHPL Financial.
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suggested solutions, collecting, organizing and evaluating data; making deductions and reaching conclusions; at last carefully testing the conclusion to determine whether they fit the formulating hypothesis.
Performance Appraisal system in HHPL Financial. B. The required data are : Secondary data Questionnaire
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company.
D. The study took 2 months to cover. E. The sample design would be 10-14 members from each
data
was
analyzed
statistically
by
forming
a) Logical analysis of the subject matter b) Preparation of the final outline c) Observations - summary and findings d) Conclusion
e) Final bibliography
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Sample Design: - A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample.
Sample size: - The total of 10 managers and supervisors at HHPL Financial, India 10-14 members from different division were selected. Different division:
Annuities Data Services Group Data Services Individual Data Services Distributing Computing Quality Assurance Mainframe Team Personnel Administration
Performance Appraisal
hosted online in a definite order on a form or a set of forms. Questionnaire consists of few structured and unstructured questionnaire.
Structured questionnaire are those questionnaire in which there is definite, concrete and pre-determine questions. The form of the question may be either closed (i.e. of the yes or no type) or open (i.e. inviting free responses) It may also have fixed alternative questions in which responses of the informants are limited to the stated alternatives (i.e. Multiple choice question).
Response to Questionnaire
In all 140 questionnaires were given to employees falling in the all category. Out of which 120 employees duly answers the questions. The researcher individually contacted the employees to get response on the questionnaire.
Data analysis
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Performance Appraisal
To streamline the response, an online questionnaire was hosted on my computer and asked employees to answer the question online.
Limitations
Many employees gave guarded answers to some crucial questions. Some of them did not fill the questionnaire due to lack of time
Response could not be received/collected form
the interviewer asking questions. Time slot was booked after mutual agreement for face to face /telephonic discussion.
c. Secondary Data: - The data which is published
beforehand, such as company profile, Hand book for managers, and Policies.
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Performance Appraisal
contribution enhancement. Employees are evaluated by how well they accomplish a specific set of objectives that have been determined to be critical in the successful completion of their job. This approach is frequently referred to as Management by Objectives. Management by objectives is a process to converts organizational objectives into individual objectives. It consists of four steps: goal setting, action planning, self-control, and periodic reviews. In goal setting, the organization's overall objectives are used as guidelines from which division and individual objectives are identified. In action planning, the means are determined for achieving the ends established in goal setting. That is, realistic plans are developed to attain the objectives. Self-control refers
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Performance Appraisal
to the systematic monitoring and measuring of performance. Finally, with periodic progress reviews, corrective action is initiated when behavior deviates from the standards established in the goal-setting phase. HHPL uses very constructive
performance appraisal process while evaluating its employees. Its evaluation is based on quantitative wise and objective wise. HHPL set goals to its employee by properly conveying with its employees, and then evaluating them up to what extent it has been achieved, and if there is failure in reaching the target, what are the causes or reasons behind it.
a.
turns
out
outstanding/exceed
expectations. If the employee performs in such a way as to collect 3 consecutive outstanding performances into his/her credit, he/she gets promoted.
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Performance Appraisal
b.
Excellent
If
the
performance
evaluated
by
the
management turns out to be excellent/met all expectations. If the employee performs in such a way as to collect 3 consecutive excellent performances into his/her credit,
he/she gets promoted. Good - If the performance evaluated by the management turns out to be good/ mostly met expectations. The
c.
management sends the employee to the training programme to improve his/her skill to perform better. Below average - If the performance evaluated by the management turns out to be below average / not met expectations. And, if the employee collects 3 below average to his/her credit, then he/she is dismissed/demoted.
d.
Appraisal Cycle
The time constraints enables the employee to show or project his/her capabilities in term of performance as per the duration allowed. In HHPL, India, the formal performance appraisal system is carried out annually.
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Performance Appraisal
Feedback The company provides the annual feedback to its employees and thus, in term brings out the highlights of the selfassessment programme. This enables the better communication between the management and employees ad thus, helps in promoting the business future. Response There are mixed responses from the feedback by the
employees. It has helped some of the employees in motivating themselves while those who felt bad were systematically communicated and all the confusion and failure part were discussed with employees.
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SYSTEM data was analyzed and interpreted. The various topics covered for analysis and interpretation of data are: PROMOTIONS A promotion may be defined as an upward advancement of an employee in an organization, to another job, which commands better remuneration, better reputation and higher opportunities, challenges, and responsibility, a better working environment, hours of work and facilities etc. The guidelines for division promotion are same for male and female employees. The experience required for filling a higher post varied from 2-5 years based on department. Five years of experience is required for promotion to managerial staff and two years of experience is required for promotion to junior
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Performance Appraisal
management. The other areas of promotion apart from seniority are merit and fitness. As per the guidelines from the personnel department,
employees are to be promoted. However, there is confusion among the employee as these guidelines are not being explained time to time, many of them are not aware of the existing promotion policy in the organization. Respondents were asked whether the promotion is well defined in the organization. The responses are given below: NUMBER OF EMPLOYEES=120 Response Yes No Cant Say Number 20 60 40 Percentage 16.66 50 33.33
From the above table, it can be seen that 17% of employees were agree and 50% of employees were not agree that promotion is well defined in the organization. However, 33% of
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Performance Appraisal
employees were not able to say it as there is lack of information about the promotion policy. Every employee need to be
70 60 50 40 30 20 10 0 Yes
60 40 20
No
Can't Say
communicated about the existing promotion policy. Respondent were asked whether the promotion policy is linked with the performance appraisal system.
The responses were as given below: NUMBER OF EMPLOYEES=120 Response Number Percentage
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Performance Appraisal
60 40 20
50 33.33 16.66
Majority responses were that promotion policy is linked with the performance appraisal system.
70 60 50 40 30 20 10 0
60
40
20
Yes
No
Can't Say
No Response
CAREER PROGRESS
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Performance Appraisal
Career progress can be defined as continuous progress through the input from organization in term of training, feedback and counseling. In todays changing scenario this has to be followed in every organization so that an individual making progress in the career adding value to him and the organization.
Respondent were asked about the current system helping in their career progress. Are the issues like career planning and succession planning a part of companys policy? The responses to the above were as given below:NUMBER OF EMPLOYEES=120 Response Yes No Cant Say Number 12 60 48 Percentage 10 50 40
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Performance Appraisal
Only 10% employees agree that career planning and succession planning a part of companys policy, 50% of the employees responded that it does not part of companys policy, while 40% gave employees were unable to say anything.
70 60 50 40 30 20 10 0 Yes
60 48
12
No
Can't Say
Respondent
were
asked
about
the
how
often
performance appraisal is done, formally or informally NUMBER OF EMPLOYEES=120 Response Fortnightly Monthly Six-monthly Annually Not fixed Number 0 0 40 80 0 Percentage 0 0 33.3 66.6 0
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Performance Appraisal
Here the responses from the employees, it was found that appraisal is done annually for 66.6% confirmed employees and 33.3% for trainees/probation employees.
80
40
0
Annually
0
Not fixed
Respondent were also asked to suggest the basis of the promotion in during the performance appraisal, 5
Performance Appraisal
The responses were as given below: NUMBER OF EMPLOYEES=120 Response Merit cum seniority Seniority cum merit Merit only Seniority only Any other Number 30 30 20 10 10 Percentage 25 25 16.66 8.3 8.3
From the above table, it can be seen that 25% agree that promotion is done based on the Merit and seniority. However 16.6% thought merit as the base. There are 8.3% appraisee who thought Seniority as the base for the promotion.
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Performance Appraisal
35 30 25 20 15 10 5 0
30
30 20 10 10
Merit only
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Performance Appraisal
Respondent were also asked to suggest about who does the appraisal for them, 5 options were given to appraise. The responses were as given below: NUMBER OF EMPLOYEES=120 Response Appraisal Committee Your immediate 100 83.33 Number 0 Percentage 0
From the above table, it can be seen that 83.33% appraise involved in self-appraisal, immediate supervisor, and they were aware that appraisal was 360 degree and feedback were asked from their supervisors/managers as well as subordinates.
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120 100 80 60 40 20 0
100
100
100
20 0
Appraisal Committee Self appraisal Any other Your immediate supervisor 360 degree appraisal
The answer of this question can be more than one. In the above table and graph, respondent selected/marked more than one answer/options. 360 degree performance appraisal is one of the appraisal system to know the overall performance of the employee. Feedback of the appraisees performance is taken from all the supervisors, colleagues, subordinates and self appraisal is also been the part of this appraisal
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distribution method Essay method Ranking method Critical method Not aware of the method Any other 0 0 40 33.33 incident 0 80 0 0 66.66 0
From the above table, it can be seen that 66.66% appraisee know that the method of their performance appraisal is Ranking, and about 33.33% appraisee were not aware about the method of appraisal.
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100 80 60 40 20 0
80 40 0 0 0 0
Forced choice distribution method Essay method Ranking method Critical incident method Not aware of the method Any other
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Performance Appraisal
Respondent were asked about the job satisfaction, does appraisal leads to job satisfaction. The responses were as given below: NUMBER OF EMPLOYEES=120 Response Yes No No response Number 50 20 50 Percentage 41.6 16.6 41.6
From the above table, it can be seen that 41.66% appraisee felt that appraisal leads to the job satisfaction and 16.66% appraisee felt that it does not leads to job satisfaction. About 41.66% appraisee fail to response to this question.
60
50
50 40 30
50
20
20 10 0 Yes No No response
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Respondent were asked about the clarity about the procedure involved in the appraisal system. The responses were as given below: NUMBER OF EMPLOYEES=120 Response Yes No Cant say Number 90 30 0 Percentage 75 25 0
From the above table, it can be seen that 75% appraisee felt that the procedure involved in the appraisal system are clear to them and 25% appraisee felt that it is not clear to them. ALIGNING GOAL
100 90 80 70 60 50 40 30 20 10 0
90
30
0
Yes No Cant say
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Respondent were asked about the present system, does it help in aligning individual goal with those of the organization. The responses were as given below: NUMBER OF EMPLOYEES=120 Response Yes No Cant Say Number 60 40 20 Percentage 50 33.3 16.6
Here the responses from the appraisees, 50% of the appraisees were agreed that it helps in aligning their goal with those of organization.
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70 60 50 40 30 20 10 0
60
40
20
Yes
No
Cant Say
REVIEWS Objective of reviews to subordinates is providing constructive feedbacks to enhance their strengths and mitigate the
weaknesses. Feedback provides for the area of improvement. Respondent were asked about if subordinates benefited from the reviews that supervisor/managers gave during the performance appraisal. The responses were as given below:
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Performance Appraisal
NUMBER OF EMPLOYEES=120 Response Yes No Cant say Number 40 70 10 Percentage 33.3 58.3 8.3
58% appraisee and appraisers felt that subordinates are not benefited from the reviews provided by the supervisors and managers. It was surprise to know that not lot of employee /appraisee benefited out of reviews provided by the
supervisor /managers.
80 70 60 50 40 30 20 10 0 Yes
70
40
10
No
Cant say
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Performance Appraisal
Employees were asked to comments on the role of top management in their performance appraisal. It was found that appraisees were agreed on the role of top management in their performance system, but they felt that top management compensation, role is very limited when career it comes to and
rewards,
benefits,
planning
succession as mentioned in the company policy. Respondent were asked about their total number of year association with HHPL, The responses were as given below: NUMBER OF EMPLOYEES=120 Response 0- 1 year 1- 2 years 2- 3 years More than 3 years Number 54 20 40 6 Percentage 45 16.6 33.3 5
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Performance Appraisal
From the above table, it can be seen that with the current performance appraisal system, company is able to retain 33% of the employees for more than 2 years.
60 50
54 40
40 30
20
20 10 0 0- 1 year 1- 2 years 2- 3 years More than 3 years
Respondent were asked about who is their reviewing officers. The responses were as given below: NUMBER OF EMPLOYEES=120 Response Immediate supervisor
64
Number 88
Percentage 73.3
Performance Appraisal
Onsite
Immediate and
28
23.3
supervisor
India service center manager Subordinates Onsite subordinate and subordinates Co-workers Peers Outside organization 0 120 4 0 100 3 ISC 120 28 100 23.2
Here the responses from the appraisees, HHPL has culture of taking feedback from the supervisor, peers, so-workers, and subordinates. For certain kind of roles appraisal is done by the
120 88 28 28 0
120
Onsite Immediate supervisor and India service center manager Subordinates Onsite subordinate and ISC subordinates Co-workers Peers Outside organization
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clients.
For
expats
appraisal
is
done
by
the
onsite
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Performance Appraisal
FEEDBACK Providing feedback plays a constructive role. It helps the employee to know his/her weakness and strength. Feedback provides for the area of improvement. Based on the feedbacks, HR can identify the training needs and enroll the employees for the same. Respondent were asked about the frequency of feedback based on their performance. The responses were as given below: NUMBER OF EMPLOYEES=120 Response Rarely Only when required Often, but not always Yes, every time 10 8.33 Number 30 40 40 Percentage 25 33.3 33.3
33.33% responded that feedback is provided though on a few occasion and only when required. The frequency has to increase
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Performance Appraisal
both from the individual and organization point of view to keep the individual motivated for work in line with the organizational expectations. Feedbacks can be used as interim checks to adherences of an individual to the organization expectation.
45 40 35 30 25 20 15 10 5 0
40 30
40
10
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ATTITUDE Respondent were asked about if appraisal system lead to the positive attitude. The responses were as given below: NUMBER OF EMPLOYEES=120 Response Yes No Cant say Number 30 70 20 Percentage 25 58.3 16.6
58% appraisee and appraisers felt that appraisal program dont leads to positive attitude and only 25% agreed on the same. Organization need to take initiative to increase the number of people who thinks that appraisal program leads to positive attitude.
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80 70 60 50 40 30 20 10 0 Yes
70
30 20
No
Cant say
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Performance Appraisal
Respondent were asked about if performance appraisal improves relationship between Boss and Subordinate? The responses were as given below: NUMBER OF EMPLOYEES=120 Response Yes No Cant say Number 20 70 30 Percentage 16.6 58.3 25
58% appraisee and appraisers felt that performance appraisal dont improve the relationship between Boss and Subordinate. Organization need to take initiative to increase the number of people who thinks that performance appraisal improve the relationship between Boss and Subordinate.
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80 70 60 50 40 30 20 10 0 Yes
70
30 20
No
Cant say
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Performance Appraisal
Respondent were asked about if performance appraisal creates atmosphere of growth and communication. The responses were as given below: NUMBER OF EMPLOYEES=120 Response Yes No Cant say Number 40 50 30 Percentage 33.3 41.6 25
41% appraisee felt that performance appraisal does not create atmosphere of growth and communication and 33.3% felt that it does.
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60
50
50
40
40
30
30 20 10 0 Yes No Cant say
Respondent were asked about if organization provide counseling after the appraisal. The responses were as given below: NUMBER OF EMPLOYEES=120 Response Yes No Cant say Number 20 80 20 Percentage 16.6 66.6 16.6
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66%
appraisee
felt
that
organization
does
not
provide
counseling after the appraisal and 16.6% felt that organization does.
90 80 70 60 50 40 30 20 10 0 Yes
80
20
20
No
Cant say
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Performance Appraisal
REMEDIAL MEASURE Based on the performance the remedial measures are taken to do away with weakness if any and build on the strength and add to the existing capability. Responses on the remedial measures were as given below: NUMBER OF EMPLOYEES=120 Response Job Rotation Sent to training Number 27 50 Percentage 22.5 41.66
Response was both for job rotation and training programme. It was felt that more training input is to be provided to the employee to overcome the weakness and improve upon the existing capability of the employee.
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50 40 27
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INDIVIDUAL DEVELOPMENT PLAN Respondent were asked about if performance appraisal help in creating individual development plan. The responses were as given below: NUMBER OF EMPLOYEES=120 Response Yes No Cant say Number 40 70 10 Percentage 33.3 58.3 8.3
58% appraisee felt that performance appraisal does not help to create individual development plan and 33.3% felt that it does.
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Performance Appraisal
80 70 60 50 40 30 20 10 0 Yes
70
40
10
No
Cant say
Respondent were asked about if job rotation help them to plan for individual development better. The responses were as given below: NUMBER OF EMPLOYEES=120 Response Yes No Cant say Number 78 30 12 Percentage 65 33.3 10
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65% appraisee felt that job rotation help them to plan for individual development better and 33.3% felt that it does not.
90 80 70 60 50 40 30 20 10 0
78
30 12
Yes
No
Cant say
Respondent were asked to provide suggestions towards improving the performance appraisal stem organization. The response were mixed, a. 20% appraisee felt that formal training required for appraisers.
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in their
Performance Appraisal
b. 40% appraisee felt that appraisal process is influenced by recent incidents and rating is very much biased for recent good or bad incidents, they suggested to have unbiased appraisal process. c. 32% appraisee felt that that should be more training need identification checklist to overcome the weakness.
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Performance Appraisal
Respondent appraisal.
were
asked
to
rate
the
performance
The response were as given below : NUMBER OF EMPLOYEES=120 Response Outstanding Very Good Good Satisfactory Poor Number 0 20 40 60 0 Percentage 0 16.6 33.3 50 0
50% of the respondent rated the system of performance appraisal to be satisfactory. Nobody rated it to be poor.
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Outstanding Poor 0% 0%
Satisfactory 50%
Good 33%
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Performance Appraisal
SWOT ANALYSIS
1.
STRENGTH : Harsoria Healthcare Pvt. Ltd. is a private limited company incorporated on August 2, 2002 under the Indian Companies Act. The factory has been
established at Plot Nos.110&111, Phase-IV, Udyog Vihar, Gurgaon -122015, Haryana (India). This factory is a 100% EOU (Export Oriented Unit) registered with the Noida Export Processing Zone (NEPZ). Harsoria commenced operations in its Design & Development section in June 2002 and the commercial production for the Medical Devices for Single Use commenced in March 2003. The company is organized and managed by professionals having considerable experience in the field. All varieties of IV Catheters being manufactured comply with
International standards for the Product as well as Quality Systems. Currently, the entire production is earmarked for the company's export customers, however the company intends serving requirements of the product in India to some extent. The current overseas customer base is
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Performance Appraisal
spread in Europe, Middle-East and some South East Asian countries. The company is committed to meet the expectations of its valued customers.
2.
WEAKNESS: HHPL is considered as conservative company because of its low risk taking capability, while investing their clients money in the health care product market among their competitors in US and Canada. They The
main weakness of the company is that the company is taking the performance appraisal objective wise, while evaluating a performance of particular employee,
objective wise, the employee does not get enough opportunity to express completely and freely the valid reasons of his/her failure to the organization. Weakness is also highlighted when HHPL, India do this performance appraisal procedure annually.
3.
OPPORTUNITY : With the help of the performance appraisal system the employee get feedback from the company. Employees can realize easily his/her level of
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Performance Appraisal
efficiency level. By this performance appraisal system the employee gets enormous opportunity to enhance their skills by customized training and various other
management programmes.
4.
performance appraisal system there is always a chance of fear that those employees who are unable to achieve their target can take it as a huge setback for them and in the log term it tends to decrease their efficiency level how good the employee is and thus it effect the overall performance of the organization. Also future appraisal can be biased from the previous years ratings.
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Performance Appraisal
The analysis and interpretation of data on study of performance appraisal and its effectiveness in an organization led to the following findings: The promotion rules to though defined need to be
communicated
every
employee
before
appraisal
process is done and also justifies the promotion as a result of the appraisal. Promotion policy followed differs at different position and category. Uniformity has to be there in the implementation of promotion policy at all levels.
The process of performance appraisal followed in HHPL, India at the supervisory and above level is not good but it is of satisfactory level. The employees do not rate it very good.
The appraisal outcome has to be used frequently for the purpose of reward on performing well together with the feedback on the performance. Also when performance
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Performance Appraisal
At present, the organization doesnt implement the career planning and career succession plans effectively.
Performance appraisal is done annually. More emphasis on training and job rotation as remedial measures.
The
mechanism
of
counseling
before
and
after
performance is not in practice at the organization in stringent fashion. During the course of study suggestions came from the employee side for the need of counseling.
Around ninety percent of the samples are happy with the induction process of the comp.
Forty one percent of the employees are satisfied with their job placements.
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Performance Appraisal
Ninety five percent of the employees have clarity of their duties and responsibilities
When ages factor is taken, it is observed that a majority of respondents above the age of 45 years are partially satisfied on.
Seventy five percent of the employees believe HHPL, India has a clear cut career plan.
Most of employees belonging to the age group 23-28 years are not satisfied with the way in which their career in taking place.
Thirty three percent of the sample employees feel their appraisal result was not communicated to them in time.
Most of the employees agree that free communication exists between the employees in the organization.
Performance Appraisal
That the employees are highly satisfied with the flexible timings followed at HHPL.
During interviews, most of employees believe that HHPL is handling the employees grievance satisfactory.
Fifty percent employees of the samples are satisfied with the appraisal system followed by HHPL, India.
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RECOMMENDATIONS
Training the Appraise: It is proposed that appraiser should be trained for clear understanding of the appraisal system and its objective and also counseled to be honest, fair, just, unbiased in appraising the appraise.
Factors/behavior of evaluation: It is proposed that appraisee evaluated on above factors/behavior be given suitable remark or justification for being given different quantitative grade.
More clarity has to be there in terms of expectations and job responsibility. This is possible when the appraisal is done on the basis of the job description.
In HHPL, performance appraisal is done on an annual basis; this should be changed to Quarterly to make it more effective.
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Performance Appraisal
Consistency and more openness are demanded in the promotional policy. It should not be changed every year.
Monetary difference between two grades should not be big; it should be motivating in nature.
Performance Appraisal system should be made more transparent, unbiased and rationale.
Performance
feedback:
The
performance
feedback
sessions should be improved which would results in increasing employee motivation to improve performance. The following could be incorporated.
Identify the problem behavior and make sure the employee is aware of it.
Make sure that the employee understands the consequences of the problem behavior.
Assistance should be provided to the employees to improve the performance. Make a reasonable plan appropriate to the behavior and set a timeframe for improvement.
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Performance Appraisal
The other change which has to be incorporated at the Manager/supervisor and the level above are :
The task should be listed down during the previous year and the result achieved.
In some areas of performance there should be self appraisal and an effective counseling should be provided to the employees to improve on weaker area and understands what is expected of him/her at the organization level.
In an open appraisal system, the employee would come together to set the targets, to understand the mutual
expectations and support to be provided by the appraiser to the employee for achieving mutually accepted targets. Through this process of setting targets the interpersonal relationship
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Performance Appraisal
The open appraisal system reduces the whims and fancies of the appraiser. It promotes result orientation as it is based on performance rather than on personality based appraisal.
Developing Performance Objectives: Annuities Data Services 1. Satisfaction Ratio 2. Turnaround time to resolve the downstream system Complaint 3. Up to 5% tolerance for the defined process deviations 4. 95% on time response 5. 95% Quality deliverables 6. 99% adherences to the data for the CDR downstream applications Group Data Services 1. Satisfaction Ratio 2. Turnaround time to resolve the downstream system Complaint 3. Up to 5% tolerance for the defined process deviations
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Performance Appraisal
4. 95% on time response 5. 95% Quality deliverables 6. 99% adherences to the data for the GDR downstream applications 7. Meet the SLA of Group business Individual Data Services 1. Satisfaction Ratio 2. Turnaround time to resolve the downstream system Complaint 3. Up to 5% tolerance for the defined process deviations 4. 95% on time response 5. 95% Quality deliverables 6. 99% adherences to the data for the IDR downstream applications 7. Meet the SLA of Individual line of business Distributing Computing 1. Number of Ideas Generated 2. Prototype Development for the workbench 3. Documentation Quality Assurance 1. Quality cost including manpower
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2. New process development for better quality 3. 0% tolerance for the process deviations Mainframe Team 1. Adherence to the product team schedule 2. Implementing the business rules 3. Documentation Personnel 1. 0% tolerance for the wages calculation 2. Ensure and maintain the hygienic workplace 3. Intelligence source developed 4. Keep up the shift roaster 5. Gate movement control Administration 1. Cost reduction percentage 2. Succession schedule 3. Savings 4. Innovations
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Performance Appraisal
Employee Name Designation Division : : : _________________________
_________________________ _________________________
Appraisal Policies:
Q.1. Do you think that promotional policies are well defined in your organization? a. Yes b. No C. cant say
Q.2. Does the promotional policies linked with the performance appraisal system? a. Q.3. Yes b. No. c. cant say
Does career planning and succession is planning a part of companys policy? a. Yes b. No. c. cant say
Q.4. Are you aware of objectives of the performance appraisal system? If yes pls describe.
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Performance Appraisal
Q.5. How often performance Appraisal is done. a. d. Fortnightly. Annually b. e. Monthly not fixed c. Six-monthly
Q.6. What is basis the of performance appraisal? a. b. c. d. e. Merit cut seniority Seniority cum merit. Merit only Seniority only. Any other, Pl. Specify.
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Performance Appraisal
Q.8. Are you aware about the methodology being used for performance appraisal in your organization? If yes, pls select out of followings: a. b. c. d. e. Forced choice distribution method. Essay method Ranking method Critical incident method Any other, kindly specify
Q.10 Are you clear about the procedure involved in the appraisal system? a. Yes b. No. c. Cant say
Q.11.Does the system help you in aligning your goals with those of the organization? a. Yes b. No. c. Cant say
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Performance Appraisal
Q.12.Do you think that appraisal system offer an opportunity to detection your strength and weaknesses? a. Yes b. No c. Cant say
Q.13.Do you think that your subordinate benefited from the review you give them during the Performance Appraisal? a. Yes b. No c. Cant say
Q.14.What is the role of top management in your performance appraisal? Please comment. Q.15. What is your total number of years association with HHPL? Q.16.Do you belong to the appraisal committee? a. Yes b. No
Q.17.Who are your Reviewing officers? a. b. Immediate superior Onsite Immediate superior and India service
Performance Appraisal
d.
Q.18.Do you get the feedback of performance appraisal? a. c. Yes, every time. Only when required b. d. Often, but not always. Rarely
Q.19.Who provide you the feedback of performance appraisal? a. b. c. d. Immediate superior Onsite Immediate superior Onsite HR Personnel India HR Personnel
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Performance Appraisal
Q.21.Do you think that performance appraisal improves relationship between Boss and Subordinate? a. Yes b. No
Q.24.Does the organization provide counseling after the appraisal? a. d. Always Never b. Often e. Cant Say c. Rarely
Q.25.Who does the counseling? a. c. Trained professionals Cant say b. Untrained counselors
Performance Appraisal
a. c. specify..
b.
Q.27.How do you rate the overall assessment of performance appraisal? a. c. d. Outstanding Good Poor b. d. Very good Satisfactory
Q.29. Do you agree on job rotation help you to plan for individual development better? a. Yes b. No
Q.30. Suggestion towards improving the performance appraisal system in your organization.
Bibliography
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Performance Appraisal
Managing a Global Workforce by Charles M. Vance and Yongsun Paik M. E. Sharpe, Inc. 2006 Personnel management, Edition sixth, by Flippo Edwin B., Tata Mc Graw Hills, 1984, p.g. 225-230.
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