INTRODUCTION OF NM INFOTECH

NM InfoTech, the growing identity in Software Technology and Training, the company is a dream of dedicated team of professionals who themselves have grown up with the I. T. revolution. The expeditious progression it has itself made strident efforts to positioning itself at the levels from where it can offer comparable evaluation in the IT sector. Mission: "To become the leading organization for ERP solutions and service providers in the world". Vision: To create total harmony with our associates through trust and total understanding. To progress and strive for excellence through optimum opportunities to personnel and seek avenues to benefit the community at large. NM is a leading ERP solutions and Software Development organization in India. We deliver products and services of the highest quality adding more value to our customers enabling them to achieve their business objectives. Apart from Software solutions, we are also into Industrial and Corporate training. NM key to the success has been providing solutions blending with the right technology and ensuring value for the money. NM is working from last few years as an Information Technology Company with annual turnover exceeding INR 14 million. NM has established itself as one of the leading companies in India and has had a growth rate of over 70% in the last two years. This was a result of consistent contribution of its core team of developers and trainers, the management group and the dedicated members who have collectively worked for its present image and striving to further improvise its services and education related fields. With special emphasis on providing industry-wide solutions to the problems encountered by our clients, NM specializes in cost effective software solutions. Solutions are also provided to modify and give direction to the already developed solutions to customized requirements. Our company adds value to open source software development project by analyzing your requirements thoroughly to understand your business needs and performing extensive research to identify optimal open source technologies. We offer custom software development services as per clients technical specifications. Our Offerings Services: Business and Technology consulting
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Application Services Software Development Web Designing Website Maintenance Software, Application and Game Testing ERP solutions Corporate and Industrial Training

Products: Pharmaceutical Management System Campus Management System School Management System Cyber Security for Colleges

At present NM INFOTECH is opening at:Head Office(Punjab) NM InfoTech E-57, 1st Floor, Phase- 8, Ind. Area, Near Vodafone, Mohali Contact No- +91- 172-4379942, +91- 1724015942 Australia Branch NM InfoTech 166 Broadway, Reservoir, Victoria 3073 Australia Contact No- +61- 433511321 Branch Office(Punjab) NM InfoTech SCO -2047,Above Lee showroom,2nd Floor mall road,Bathinda Contact No- +91- 0164-5009974, +91- 01645009874

REVIEW OF LITERATURE
Articles: 1. Perfecting the Appraisal Process - A Guide for Employers By: Matt Crumble Home | Business | Workplace-Communication Abstract: Performance appraisal is a very important part of performance management. It is of paramount importance that the objectives of the appraisal scheme are determined before the system is designed in detail. The objectives will to a large extent dictate the methods and performance criteria for appraisal, so it is very important that they should be discussed with employees, managers and trade unions to obtain their views and secure their commitment to the process. The main objectives of an appraisal system are usually to review performance and potential, and identify training and career planning needs. Link: http://www.articlesnatch.com/Article/Perfecting-The-Appraisal-Process---A-Guide-ForEmployers/1967084#ixzz1clt4T1tb Under Creative Commons License: Attribution No Derivatives

2. Performance Appraisal Process By Madhurjya Bhattacharyya Published: 5/18/2010 Abstract: The performance appraisal process is a critical component in the growth and development of not only the company, but also an individual in an organization. There are
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several steps which most employers follow during the performance appraisal process. The first step is setting performance standards, followed by setting up the proper standard of communication, measuring performance, comparison of actual performance and the kind of performance desired by the organization, discussion and feedback and then the final decision. Link: http://www.buzzle.com/articles/performance-appraisal-process.html

3. Performance Appraisals: By Dinah Bailey | Published 03/16/2007 | Business & Finance

Abstract: Effective performance appraisals are part of a larger HR related process. Regardless of the method used to evaluate performance, the feedback an employee receives allows for future development and potential growth within the company. It doesn't just look at how close the employee is to a desired result; it serves as a reminder of the parameters the employee needs to perform within, in order to achieve that result. Link: www.thebremptonnews.com

Performance Appraisal
Introduction Appraisal of performance is widely used in society. Parents evaluate their children, teachers evaluate their students and employers evaluate their employees. However, formal evaluation of employees is believed to have been adopted for the first time during the First World War. Since then tremendous changes have taken place in the concept, techniques and philosophy of employee appraisal. Concept of Performance Appraisal Performance appraisal is the process of assessing the performance and progress of an employee or a group of employees on a given job and his potential for future development. According to Flippo, Performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in matters pertaining to his present job and his potential for a better job. Characteristics of Performance Appraisal The main characteristics of performance appraisal are as follows: 1 Performance appraisal is a process consisting of a series of steps. 2 It is the systematic examination of an employees strengths and weaknesses in terms of the job. 3 Performance appraisal is an ongoing or continuous process wherein the evaluations are arranged periodically according to a definite plan. 4 The main purpose of performance appraisal is to secure information necessary for making objective and correct decisions on employees. 5 Performance appraisals is a scientific or objective study. Formal procedures are used in this study. The same approach is adopted for all jobholders so that the results are comparable.

Importance of Performance Appraisal Performance appraisal is very important for an organization due to following reasons: 1 Performance appraisal provides valuable information for personnel decisions such as pay increases, promotions, demotions, transfers and terminations. 2 It helps to judge the effectiveness of recruitment, selection, placement and orientation systems of the organization. 3 It is useful in analyzing training and development needs. 4 Performance appraisals can be used to improve performance through appropriate feedback and counseling to employees. 5 Performance appraisals facilitate human resource planning, career planning and succession planning. 6 Systematic appraisals provide management an opportunity to properly size up the employees. 7 It promotes a positive work environment which contributes to productivity. When achievements are recognized and rewarded on the basis of objective performance measures, there is improvement in work environment. 8 Systematic appraisal of performance helps to develop confidence among employees.

Performance Appraisal Process Performance appraisal process follows a set pattern and it consists of the following steps: 1 Establishing Performance Standards: The appraisal process begins with the setting up of criteria to be used for appraising the performance of employees. The criteria are specified with the help of job analysis which reveals the contents of a job. If work performance cannot be measured, personal characteristics which contribute to employee performance must be determined. 2 Communicating the Standards: The performance standards specified in the first step are communicated and explained to the employees so that they come to know what is expected of them. If necessary the standards may be revised or modified in the light of feedback obtained from the employees and the evaluators. 3 Measuring Performance: Once the performance standards are specified and accepted, the next stage is the measurement of actual performance. Personal observations, written reports and face to face contacts are the means of collecting data on performance. 4 Comparing The Actual With The Standards: Actual performance is compared with the predetermined performance standards. Such comparison will reveal the deviations which may be positive or negative. Positive deviations occur when actual performance exceeds the standards. On the other hand, excess of standard performance over actual performance represents negative deviation. 5 Discussing The Appraisal: The results of the appraisal are communicated to and discussed with the employees. Along with the deviations, the reasons behind them are also analyzed and discussed. Such discussion will enable an employee to know his weaknesses and strengths. Therefore, he will be motivated to improve himself. 6 Taking Corrective Actions: Through mutual discussions with employees, the steps required to improve performance are identified and initiated. Training, coaching, counseling, etc. are examples of corrective actions that help to improve performance.
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Methods of Performance Appraisal Methods of performance appraisal can be classified into two broad categories: (A)Traditional Methods (A) Traditional methods: Following methods comes under traditional methods: (B) Modern Methods

(1)

Confidential report:

A confidential report is a report prepared by the employees immediate superiors. It covers the strengths and weaknesses, main achievements and failure, personality and behavior of the employees. It is descriptive appraisal used for promotion and transfers of employees.

(2)

Free form or essay method:

Under this method, the evaluator writes a short essay on the employees performance on the basis of overall impression. The description is expected to be as factual and concrete as possible. An essay can provide a good deal of information of the employees especially if the evaluator is asked to give examples of each of his judgments.

(3)

Straight ranking method:

In this method, the evaluator assigns relative ranks to all the employees in the same work unit doing the same job. Employees are ranked from the best to the poorest on the basis of overall performance. The whole man is compared with the whole man without analyzing performance.

(4)

Paired comparisons method:

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This is modified form of man to man ranking. Herein, each employee is compared with all the others in pairs one at a time. The number of times an employee is judged better than the other determines the rank. Comparison is made on the basis of overall performance.

(5)

Forced distribution method:

In this method, the rate is required to distribute his ratings in the form of a normal frequency distribution. The purpose is to eliminate the raters bias of central tendency. Here also ranking technique is used. This method is highly simple to understand and easy to apply.

(6)

Graphic rating scales:

It is a numerical scale indicating different degrees of a particular trait. The rate is given a printed from for each employee to be rated. The form contains several characteristics relating to the personality and performance of employees.

(7)

Checklist method:

A checklist is a list of statements that describes the characteristics and performance of employees on the job. The rater checks to indicate if the behavior of an employee is positive or negative to each statement.

(8)Group appraisal method:

Under this method, a group of evaluators assesses employees. This group consists of the immediate supervisor of the employee, other supervisors having close contact with employees work, head of the department and a personnel expert. (B) Modern method: Following methods comes under modern method:

(1) Assessment centre method :

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An assessment centre is a group of employees drawn from different work units. These employees work together on an assignment similar to the one they would be handling when promoted. Evaluators observe and rank the performance of all the participants. Experienced managers with proven ability serve as evaluators. (2) Human resources accounting method: Human resources are a valuable asset of any organization. This asset can be valued in terms of money. When competent and welltrained employees leave an organization the human asset is decreased and vice-versa. Under this method, performance is judged in terms of costs and contributions of employees. Difference between cost and contribution will reflect the performance of employees.

(3)MBO: The concept of management by objectives was developed by Peter Drucker in 1954. It has been defined as process whereby the superior and mangers of an organization jointly identifies its common goals, define each individuals major areas of responsibility in terms of results expected of him and use these majors as guides for operating the units and assessing the contributions of each it members. In other words, MBO involves appraisal of performance against clear, time bound and mutually agreed job goals.

(4)360 degree appraisal: 360 appraisals involve evaluation of a manager by everyone above, alongside and below him. Structured questionnaire are used to collect responses about a manager from his bosses, peers and subordinates. Several parameters relating to performance and behavior are used in the questionnaires. Each manager is assessed by a minimum of fifteen colleagues, at least two of them being bosses, four of them peer and six of them subordinates. The responses are presented collectively to the assesses in the form of charts and graphs.

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METHOD OF PERFORMANCE APPRAISAL USED IN NM INFOTECH ACR (Annual Confidential Reports)

In NM INFOTECH, ACR is used for the performance appraisal of employees. The Annual Confidential Reports of the government servants are written with a view to adjudge their performance every year in the areas of their work, conduct, character and capabilities. The system of writing confidential reports has two main objectives. First and foremost is to improve performance of the subordinates in their present job. The second is to assess their potentialities and to prepare them for the jobs suitable to their personality. The columns of ACRs are, therefore, to be filled up by the Reporting, Reviewing and Accepting authorities in an objective and impartial manner.

Timely Completion of Confidential Reports

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The delay in writing of the confidential reports delays holding of DPCs for promotion & confirmation, awards of PPM/PM, forwarding of applications for higher posts etc. which cause undue hardship to the employees whose cases are due for consideration. The confidential reports should, therefore, be written strictly in accordance with the prescribed time schedule

OBJECTIVES OF THE STUDY

The main objectives of performance appraisal are as follows: 1 To provide feedback to employees so that they come to know where they stand and can improve their job performance. 2 To provide a valid database for personnel decisions concerning placement, pay, promotion, transfer, punishment, etc. 3 To diagnose the strengths and weaknesses of individuals so as to identify further training needs. 4 To develop positive superior-subordinate relations and thereby reduce grievances. 5 To provide coaching, counseling, career planning and motivation to subordinates.

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RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the problem. It may be understood has a science of studying how research is done scientifically. In it we study the various steps that all generally adopted by a researcher in studying his research problem along with the logic behind them.

RESEARCH DESIGN
A framework or blueprint for conducting the research project. It specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve research
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problems. A good research design lays the foundation for conducting the project. A good research design will ensure that the research project is conducted effectively and efficiently. Typically, a research design involves the following components, or tasks:

Define the information needed. Design the research. Specify the measurement and scaling procedures. Construct and present a questionnaire or an appropriate form for data collection. Specify the sampling process and sampling size. Develop a plan of data analysis.

DATA COLLECTION
The task of data collection begins after a research problem has been defined and research designed/ plan chalked out. Data collection is to gather the data from the population. The data can be collected of two types: Primary Data Secondary Data

Primary Data
The Primary Data are those, which are collected afresh and for the first time, and thus happened to be original in character. Observation. Personal Interviews. Telephonic interviews. Questionnaires. Schedules.
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Secondary Data
The Secondary Data are those which have already been collected by someone else and which have already been passed through the statistical tool. Methods of collection of Secondary data are

Newspapers. Magazines Journals Internet Libraries Old records. In this project I am using both the methods of data collection PRIMARY DATA THROUGH QUESTIONNARE SECONDARY DATA THROUGH INTERNET A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure and the researcher would adopt in selecting items of sample. Sample design may as well lay down the number of items to be included in the sample i.e. the size of the sample. Sample design is determined before data are collected. Before going trough sampling design, let us learn some terms. Population: The aggregate of all the elements, sharing some common set of characteristics that comprises the universe for the purpose of the research problem. In this project employee of NM is the population. Sample: A subgroup of the elements of the population selected for participation in the study. In this project sample size is 100 employees

Sampling Unit: The basic unit containing the elements of the population to be sampled.
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In this project sampling unit is NM Employees

Sampling Technique used in survey Non probability Sampling Techniques.

Convenience Sampling And Judgement Sampling Nonprobability sampling techniques do not use chance selection procedures. Rather, they rely on the personal judgment of the researcher where as probability sampling procedure each element of the population has fixed probabilistic chance of being selected for the sample.

DATA ANALYSIS AND INTERPRETATION Q-1) Do you think that participation in the appraisal process is at the required level? a. Agree c. Disagree 73.3% 16.7% b. Neutral 10%

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INTERPRETATIONChart-1 presents that 73.3% of the employees agree that participation in the appraisal process is at the required level

Q2 Do you think that once completed the forms are just filed away? a. Agree 36.7% b. Neutral c. Disagree 43.3% 20%

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INTERPRETATIONChart-2 shows that once completed the forms are just filed away in which 43.3% of the employees disagree, 36.7% of the employees agree and 20% of the employees are neutral.

Q3) Do you believe that managers feel it difficult to complete the form? a. Yes 42% b. No 58%

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CHART -3

42%

yes no

58%

INTERPRETATION Following pie chart depicts that majority of manager find it suitable to complete the form, as 58% find it easy while 42% find it difficult to fill to form.

Q4) Do you think that rating is sometimes seen as based on personal biasness? a. Agree 46.7% b. Neutral 36.6% c. Disagree 16.7%

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INTERPRETATION Chart-4 shows that 46.7% of the employees agree that rating is sometimes based on personal biasness while 36.6% of the employees disagree.

Q5) Do you think that successes are rarely recorded? a. Strongly Agree 0% b. Agree c. Neutral 20% d Strongly Disagree e. Disagree 50% 30% 0%

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INTERPRETATION Chart-5 shows that 50% of the employees disagree that successes are rarely recorded while 30% of the employees agree.

Q6) Do you believe that the feedback on good or poor progress is saved up to the end of the year? a. Agree 66.7% b. Neutral 20% c. Disagree 13.3%

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INTERPRETATION Chart-6 shows that 66.70% of the employees agree that feedback on good or poor progress is saved up to the end of year while 13.30% of the employees disagree.

Q7) Do you think that performance appraisal helps to win co-operation and team work? a. Usually 66.7% b. Sometimes 20% c. Never 13.3%

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INTERPRETATION Chart-7 shows that 66.7% of the employees usually agree that performance appraisal helps to win co-operation and team-work while 13.3% of the employees disagree.

Q8) Do you think that performance appraisal is helpful in reducing grievance among the employees? a. Agree 56.7% b. Neutral 20% c. Disagree 23.3%
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INTERPRETATION Chart-8 shows that 56.70% of the employees agree that performance appraisal is helpful in reducing grievance among the employees and 23.3% of the employees disagree.

Q9) Do you think that performance appraisal helps to identify strengths and weakness of the employee? a. Yes 76.7% b. No 23.3%

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INTERPRETATION Chart-9 shows 76.7% of the employees agree that performance appraisal helps to identify strengths and weakness of employees while 23.3% of the employees disagree

Q10) Do you believe that promotion is purely based on performance appraisal? a. Agree 30% b. Neutral 33.3% c. Disagree 36.7%

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INTERPRETATION Chart-10 shows that 30% of the employees agree that promotion is purely based on performance appraisal 36.70% of the employees disagree.

Q11 Do you believe that getting meeting arranged to discuss each stage of the appraisal process is difficult? a. Strongly Agree c. Neutral e. Disagree 15% 10% 15% b. Agree d.Strongly Disagree 40% 20%

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INTERPRETATION Chart-11 shows that 40% of the employees agree that getting meeting arranged to discuss each stage of the appraisal process is difficult while of the employees disagree.

Q12 Do you think that low performance is highlighted but no development support is defined? a. Agree c. Disagree 36.7% 30% b. Neutral 33.3%

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INTERPRETATION Chart-12 shows that 36.70% of the employees agree that low performance is highlighted but no development support is defined while 30% of the employees disagree.

Q13 Do you think that employee opinions and suggestion in the appraisal process are given due consideration by management? a. Agree 43.3% b. Neutral 43.3% c. Disagree 13.4%

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INTERPRETATION Chart-13 shows that 43.30% of the employees agree that employee opinion and suggestions in the appraisal process are given due consideration by management while 13.40% of the employees disagree.

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Q14 Do you think that in the company your subordinates show a positive attitude towards performance appraisal? a. Usually 56.7% b. Sometimes 33.3% c. Never 10%

INTERPRETATION Chart-14 shows that 56.70% of the employers agree that subordinates usually show a positive attitude towards performance appraisal,33.3% sometimes and 10% of the employee never show positive attitude.

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Q15 Do you think that your organization adopt appropriate methods and system for the performance appraisal of employees? a. Agree 50% b. Neutral 26.6% c. Disagree 23.3%

INTERPRETATION Chart-15 shows that 50% of the employees agree that organization adopts appropriate methods and systems for the performance appraisal of employees while 23.30% of the employees disagree.

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FINDINGS
1. Most of the employees think that the participation in the appraisal process is at the required level. 2. The managers also find it suitable to complete the form. 3. Most of the employees were agreeing that feedback on good or poor progress is saved up to the end of the year. 4. All the employees are usually agree that performance appraisal helps to win co-operation and team work. 5. Performance appraisal is helpful in reducing grievances among the employees.

SUGGESTIONS
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1. Participation of all employees in the appraisal process should be at the required level. 2. Ratings of employees should not be based on Personal biasness. 3. .Performance Appraisal should be made an ongoing or continuous process. 4. Performance Appraisal should be used as a tool to secure information necessary for making objective and correct decision on employees. 5. Performance Appraisal should be correctively used to improve performance through appropriate feedback and counseling to employees. 6. The focus of employer should not only be on highlighting the low performance but also on development of employee. 7. Employee opinion and suggestion should be given due consideration in the appraisal process.

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CONCLUSION

In NM INFOTECH, ACR (Annual Confidential Report) is used to appraise the performance of employees. Most of the government organizations use this method. This is one of the convenient method of performance appraisal. Employers fill ACRs of employees without any biasness and the report is kept confidential. The report is filled by the employers annually. This confidential report helps the management to know the performance of each and every employee so that they can take decisions regarding their promotion, transfer, training and development needs. As the report is kept confidential so most of the employees are satisfied with this method. In the survey I also observed that most of the employees of NM INFOTCH are satisfied with this method. They never go against the management regarding their performance appraisal. In this way performance of the employees is accessed and then decisions are taken.

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BIBLIOGRAPHY
BOOKS:1. Gupta C.B, Human Resource Management, Sultan Chand & Sons, 8th Edition, 2007. 2. Kothari C.R, Research Methodology, New Age International 2009. Publishers, 2nd Edition, Edition, 2007.

3. Chhabra T.N, Human Resource Management, Dhanpat Rai & Co., 5th MAGAZINE:1. Half Yearly Magazine VANI-NFL WEBSITES:1.http://www.kisanurea.com 2. http://www.nationalfertilizers.com/about.htm 3. http://www.articlesnatch.com/Article/Perfecting-The Appraisal Process 4. http://www.buzzle.com/articles/performance-appraisal-process.html 5. http://www.thebremptonnews.com

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