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1.1 INTRODUCTION TO PERFORMANCE APPRAISAL

Fig No 1.1 Performance Appraisal

The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management.

As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World War - not more than 60 years ago.

Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things historical, it might well lay claim to being the world's second oldest profession!

There is, says Dulewicz (1989), "... a basic human tendency to make judgements 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

judgements

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 or not the salary or wage of an individual employee was justified. The process was firmly linked to material outcomes. If an employee's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was 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 impetus 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. For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. These observations were confirmed in empirical studies. Pay rates were important, yes; but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence. As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time. 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 (annual or semi-annual), in 3

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. In many organizations - but not all - appraisal results are used, either directly or indirectly, to help determine reward outcomes. That is, 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 poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay). Whether this is an appropriate use of performance appraisal - the assignment and justification of rewards and penalties is a very uncertain and contentious matter.

Performance Appraisal Performance appraisal (PA) is one of the important components in the rational and systemic process of human resource management. The information obtained through performance appraisal provides foundations for recruiting and selecting new hires, training and development of existing staff, and motivating and maintaining a quality work force by adequately and properly rewarding their performance. Without a reliable performance appraisal system, a human resource management system falls apart, resulting in the total waste of the valuable human assets a company has. There are two primary purposes of performance appraisal: evaluative and developmental. The evaluative purpose is intended to inform people of their performance standing. The collected performance data are frequently used to reward high performance and to punish poor performance. The developmental purpose is intended to identify problems in employees performing the assigned task. The collected performance data are used to provide necessary skill training or professional development.

The purpose of performance appraisal must be clearly communicated both to raters and ratees, because their reactions to the appraisal process are significantly different depending on the intended purpose. Failure to inform about the purpose or misleading information about the purpose may result in inaccurate and biased appraisal reports. Critical Criteria of Developing a Performance Appraisal System In order for performance appraisal information to be useful, the PA system must be able to consistently produce reliable and valid results. Measurement items in the performance appraisal system must be designed in such a way that the results of rating are consistent regardless of the raters and the timing of the assessment. Another critical criterion in developing a PA system is the validity of the measurements. It is important to make sure that the appraisal items are really measuring the intended performance or target behavior. If they are not, the PA system encourages the wrong kind of work behaviors and produces unintended, frequently negative, organizational outcomes. For instance, if the number of traffic violation tickets issued is an item in performance appraisal of police officers, it encourages them to sit on a corner of a street and pull over as many violators as possible during heavy traffic hours. The true purpose of a police force, which is public safety, may become secondary to issuing a large number of tickets for many officers. What to Evaluate The first important step in developing a PA system is to determine which aspects of performance to evaluate. The most frequently used appraisal criteria are traits, behaviours, and task outcomes. Traits. Many employees are assessed according to their traits, such as personality, aptitudes, attitudes, skills, and abilities. Traits are relatively easy to assess once a rater gets to know ratees. But traits are not always directly related to job per formance. Trait-based assessment lacks validity and thus frequently raises legal questions. Behaviors. For many jobs, performance is so broadly defined or so conceptual in nature such as ensuring public safety in the police de partmentthat it is hard to come up with reliable 5

performance measures. In such cases, desirable behaviors can be identified and assessed in the belief that such behaviors lead to successful performance. Such behavior-focused assessment encourages employees to adopt desirable behavioral patterns in the workplace. Task outcomes. When information about task outcomes is readily available, it is the most appropriate factor to use in evaluating performance. When an organization has a clear and measurable goal as in the case of a sales force, this approach is recommended. However, it has its own pitfalls. There is a problem if employee behaviors are not directly related to the task outcome. Too narrow a focus on measuring out-come only sometimes results in unintended negative consequences. When sales staff narrowly focus on target sales figures to increase their performance measure, for example, they are encouraged to help a few large-volume customers and to ignore many smaller buyers. This may result in poor customer service on the floor. Who Evaluates? The most common raters of performance are employees' immediate supervisors, who are usually in the best position to know and observe the employees' job performance. They are also responsible for employees' work. Their evaluation is a powerful tool in motivating employees to achieve successful and timely completion of tasks. However, as a result of working together over a long time with the same employees, the immediate supervisor may build up a fixed impression about each employee and use it every time he or she has to evaluate performance. Some companies find that subordinates are in an excellent position to observe and evaluate their managers' performance, especially when it comes to measuring effective management of their department. While there is merit in asking subordinates to evaluate how they are managed, such evaluation may turn into a popularity contest. Accurate and objective assessment may not be obtained if employees are fearful of possible retaliation from their supervisors. Anonymity of the evaluators is key to the successful use of subordinates for objective evaluation. Other raters who are frequently used in some companies include peers, customers, and the employees themselves. Peer evaluation is particularly useful when teamwork and collegiality are important to successful task performance. Peer pressure is sometimes a powerful motivator in encouraging teamwork among members. Customer satisfaction is vital to a company's success 6

and can be used in performance appraisal. Many companies systematically collect performance information from customers, typically through anonymous surveys and interviews. Selfassessment is also a useful means, especially when the performance appraisal is intended to identify the training and development needs of potential employees. Each of these raters contributes to assessing certain aspects of performance. Since job performance is multidimensional in nature, it is important to use different raters or a combination of multiple raters depending on the goal of a performance appraisal system. This multirater evaluation, or so-called 360-degree feedback system, is becoming increasingly popular among many American corporations, including General Electric, AT&T, Warner Lambert, and Mobi Figure 1.2 PROCESS OF PERFORMANCE APPRAISAL

ESTABLISHING STANDARDS

TAKING CORRECTIVE ACTION ,IF NECESSARY

COMMUNICATE THE STANDARDS

COMPARE ACTUAL WITH STANDARD AND DISCUSS APPRAISAL

MEASURE ACTUAL PERFORMANCE

Establishing performance standards: Appraisal systems require performance standards, which serve as a benchmark against which performance is measured. To be useful, standards should relate to the desired results of each job. Performance standards must be clear to both the appraiser and the appraisee. These standards should be set after thorough analysis of job. goals must be written down. They must be measurable within certain time and cost consideration. for example, the regional sales officer may be asked :The sales of color television sets in ghaziabad

must increase by 1000 per month in the next 6 months and the budget toward promotion expenses would Rs.5000 per month. Criteria for identifying and writing good performance goals What is the task to be accomplished? What will it look like when it is accomplished? When it must be accomplished? What are the cost considerations?

Communicate the standards: performance appraisal includes at least two parties; the appraiser who does the appraisal and the appraisee whose performance is being evaluated. Both are expected to do certain things. The appraiser should prepare job description clearly; help the appraisee set his goals and targets; analyse results objectively; offer coaching and guidance to the appraisee whenever required and reward good results. the appraisee should be very clear about what he is doing and why he is doing it. For this purpose performance standards must be communicated to appraisee and their reactions should be noted down right away. If necessary these standards must be revised or modified.

Measure actual performance: After the performance standards are set and accepted ,the next step is to measure actual performance. This require the use of dependable performance measures, the ratings used to evaluate performance. performance measures to be helpful must be easy to use, reliable, and report on the critical behaviours that determines performance. four common sources of information which are generally used by managers regarding how to measure actual performance are observation, statistical reports, oral reports and written reports. performance measures may be objective or subjective. objective performance measures are indications of job performance that can be verified by others and are usually quantitative. objective criteria include quality of production, degree of training needs and accidents in a given period, absenteeism, length of service etc. subjective performance measures are ratings that are based on the personal standards or opinions of those doing the evaluation, and are not verifiable by others. subjective criteria include rating by superiors, overall goals, and socio-cultural values of the environment. it should be noted here that objective criteria can be laid down while 8

evaluating lower level jobs which are specific and defined clearly. this is not the case with middle level positions that are complex and vague. Compare actual performance with standards and discuss the appraisal: Actual performance may be better than expected and sometimes it may go off the track. whatever be the consequences there is a way to communicate and discuss the final outcome. the assessment of another persons contribution and ability is not an easy task. It has serious emotional overtones as it effects the self esteem of the appraisee. any appraisal based on subjective criteria is likely to be questioned by the appraisee and leave him quite dejected and unhappy when the appraisal turns out to be negative. Taking corrective action ,if necessary: Corrective action is of two types: one puts out the fires immediately, while other destroys the root of the problem permanently. immediate action sets things right and get things back on track whereas the basic corrective action gets to the source of deviations and seeks to adjust the difference permanently. Basic corrective steps seeks to find out how and why performance deviates. Figure 1.3 Methods of Performance Appraisal

1. Results Method Management by Objectives (MBO) The use of management objectives was first widely advocated in the 1950s by the noted management theorist Peter Drucker. MBO (management by objectives) methods of performance appraisal are results-oriented. That is, they seek to measure employee performance by examining the extent to which predetermined work objectives have been met. Usually the objectives are established jointly by the supervisor and subordinate. An example of an objective for a sales manager might be: Increase the gross monthly sales volume to $250,000 by 30 June.

Once an objective is agreed, the employee is usually expected to self-audit; that is, to identify the skills needed to achieve the objective. Typically they do not rely on others to locate and specify their strengths and weaknesses. They are expected to monitor their own development and progress.

2. Critical Incident Technique: Under this method, the manager prepares lists of statements of very effective and ineffective behaviour of an employee. These critical incidents or events represent the outstanding or poor behaviour of employees on the job. The manager maintains logs on each employee, whereby he periodically records critical incidents of the workers behaviour. At the end of the rating period, these recorded critical incidents are used in the evaluation of the workers performance. An example of a good critical incident of a sales assistant is the following: July 20 The sales clerk patiently attended to the customers complaint. He is polite, prompt, and enthusiastic in solving the customers problem. On the other hand the bad critical incident may appear as under: July 20 The sales assistant stayed 45 minutes over on his break during the busiest part of the day. He failed to answer the store managers call thrice. He is lazy, negligent, stubborn and uninterested in work.

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This method provides an objective basis for conducting a thorough discussion of an employees performance. This method avoids recency bias (most recent incidents get too much emphasis). This method suffers however from the following limitations: Negative incidents may be more noticeable than positive incidents. The supervisors have a tendency to unload a series of complaints about incidents during an annual performance review session. It results in very close supervision which may not be liked by the employee. The recording of incidents may be a chore for the manager concerned, who may be too busy or forget to do it. Most frequently, the critical incidents technique of evaluation is applied to evaluate the performance of superiors rather than of peers of subordinates.

3. Graphic Rating Scale: Perhaps the most commonly used method of performance evaluation is the graphic rating scale. Of course, it is also one of the oldest methods of evaluation in use. Under this method, a printed form, as shown below, is used to evaluate the performance of an employee. A variety of traits may be used in these types of rating devices, the most common being the quantity and quality of work. The rating scales can also be adapted by including traits that the company considers important for effectiveness on the job. A model of a graphic rating scale is given below. Table: Typical Graphic Rating Scale Employee Name................... Job title................. Department......................... Data.................................. Rate...............

Table 1.1 Graphic Rating Scale Quantity of work: Unsatisfactory Fair Satisfactory Good Outstanding

Volume of work under normal conditions Quality of work: working

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Neatness,

thoroughness

and accuracy of work Knowledge of job A clear understanding of the factors connected with the job Attitude: enthusiasm Exhibits and

cooperativeness on the job Dependability: Conscientious, thorough, reliable, accurate, with respect to attendance,

reliefs, lunch breaks, etc. Cooperation: Willingness and ability to work with others to produce desired goals. The rating scale is the most common method of evaluation of an employees performance today. One positive point in favour of the rating scale is that it is easy to understand, easy to use and permits a statistical tabulation of scores of employees. When ratings are objective in nature they can be effectively used as evaluators. The graphic rating scale may however suffer from a long standing disadvantage, i.e., it may be arbitrary and the rating may be subjective. Another pitfall is that each characteristic is equally important in evaluation of the employees performance and so on 4. 360 degree performance appraisal In human resources, 360-degree feedback, also known as 'multi-rater feedback', 'multi source feedback', or 'multi source assessment', is employee development feedback that comes from all 12

around the employee. "360" refers to the 360 degrees in a circle. The feedback would come from subordinates, peers, and managers in the organizational hierarchy, as well as self-assessment, and in some cases external sources such as customers and suppliers or other interested stakeholders. It may be contrasted with upward feedback, where managers are given feedback by their direct reports, or a traditional performance appraisal, where the employees are most often reviewed only by their manager. The results from 360-degree feedback are often used by the person receiving the feedback to plan their training and development. The results are also used by some organizations for making promotional or pay decisions, which is sometimes called "360-degree review."

Figure 1.4 360 Degree Appraisal Method

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Benefits

Individuals get a broader perspective of how they are perceived by others than previously possible.

Increased awareness of and relevance of competencies. Gaining acceptance of the principle of multiple stakeholders as a measure of performance. Encouraging more open feedback new insights. . Provided a clearer picture to senior management of individuals real worth Opens up feedback and gives people a more rounded view of performance than they had previously.

Identifying key development areas for the individual, a department and the organization as a whole.

Identifying strengths that can be used to the best advantage of the business. A rounded view of the individuals/ teams/ organizations performance and what the strengths and weaknesses are. Raised the self-awareness of people managers of how they personally impact upon others positively and negatively.

Supporting a climate of continuous improvement.

5. Behavioral observation scale How do you measure the performance of your administration staff, your secretary, or another non-production staff? In production floor, we can use the number of product (in units) that processed daily or in workhours easily, as the basis of employee performance. But, this is very difficult to determine the quantitative type of work output completed by such employees (administration staff, secretary, research & development staff). We cant use the number of letters that has been typed by the secretary as the reference, as the larger the number of the letters, the better the performance. Then, A qualitative based performance appraisal (PA) method has been developed to handle this problem, called Behavioral Observation Scale (BOS). The rationale is simple. Good behavior

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will produce good performance, bad behavior will be a distortion. This method is applicable for production-employees performance, too. The key factor of measurement in this method is determining the behaviors in workplace that related to the success or the failure, partially or generally, to the jobs.

There are some consideration in making an effective BOS: 1. The behaviors on the job must be JOB EVALUATION based analysis. 2. Critical Incident Technique (CIT) should be performed to minimize the bias of performance measurement

6. Bell Curve Method Grading on a bell curve is a method of assigning grades designed to yield a desired distribution of grades among the employees. Strictly speaking, grading "on a bell curve" refers to the assigning of grades according to the frequency distribution known as the Normal distribution (also called the Gaussian distribution), whose graphical representation is referred to as the Normal curve or the bell curve. Because bell curve grading assigns grades to employees based on their relative performance in comparison to others, the term "bell curve grading" came, by extension, to be more loosely applied to any method of assigning grades that makes use of comparison between emloyees performances, though this type of grading does not necessarily actually make use of any frequency distribution such as the bell-shaped Normal distribution. In true use of bell curve grading, employees scores are scaled according to the frequency distribution represented by the Normal curve. The instructor can decide what grade occupies the center of the distribution. This is the grade an average score will earn, and will be the most common. Traditionally, in the ABCDF system this is the 'C' grade. The instructor can also decide what portion of the frequency distribution each grade occupies and whether or not high and low grades are symmetrically assigned area under the curve (i.e. if the top 15% of employees earn an 'A,' do the bottom 15% fail or might only the bottom 5% fail?). In a system of pure curve grading, the number of employees who will receive each grade is already determined at the beginning of a course.

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Although Forced Distribution Method is quite popular in western countries, it does not ensure its success in our country. It is severely criticized for being unethical, subjective, and unsuitable for small teams and creating a dysfunctional work environment. These pitfalls far out the way its contribution in terms of minimizing the errors of central tendency and facilitating comparative analysis. Performance appraisal system in Baweja Industries Once an employee is selected and trained for a job then management would like to see how he performance his work. It helps in evaluating the performance of employees and in assessing hiring and training methods followed in organization. The employees are recruited with some objective in mind, whether these have been achieved or not has to be regularly evaluated. Every organization conducts this activity as per their requirements.

Various responsibility bands through which a person can move through performance appraisal system:

Figure 1.5 Various Responsibility Bands

STRATEGIC
Exective director Executive vice president C OO Vice President Senior General Manager General Manager

EXECUTIVE

TECHNICAL

Deputy General Manager Assistant General Manager Senior Manager

PROFESSIONAL

Manager Associate Manager Deputy Manager Assistant manager Senior Executive Executive Senior Officer Officer Junior Officer

OPERATIONAL

ADMINISTRATIVE

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Policies regarding responsibility band change 1) On change to higher or lower band benefits applicable to that particular band will be applicable from the date of assuming charge. 2) In all cases of responsibility change there is probation period of 12 months. 3) All expenses relating to the conduct of interview will be borne by the division/function where the vacancy exists. 4) In case of vacancies arising out of change in structure, the change in structure has to be approved by Executive Director for operational and professional band Managing director for tactical band and above 5) Selected person will have to be released within one month of issue of notice of selection. 6) Routing of application through divisional/corporate functional head is purely a procedural matter. In case corporate HRD receives any application directly, a copy of the same will be sent to the divisional/corporate department head. 7) No recommendation for change in responsibility band while on the same job, on the basis of Performance appraisal will be entertained. 8) Corporate HRD will ensure that selection of candidate against any sanctioned vacancy is completed within 2 months from the date it is informed about the vacancy.

Procedure for selection to a higher band A) From amongst the applications received against an internal notice, short listing and interviews will be done by a selection committee nominated by corporate by HRD. B) On the basis of interviews, the selection committee will make a final short list of

candidate to be sent to the head of division/corporate department where the vacancy exists for final selection C) For strategic and executive band , the final selection will have to be approved by managing director.

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Performance management system Figure 1.6 Performance Management System

1)

Mission: Mission allows us to see our job clearly. It gives us a sense of direction. For framing mission statements firstly the essence of job is captured. Then the purpose of doing that job is defined that whether it is to be done for higher purpose or for noble purpose.

2)

Key result area: On the basis of annual business plan each division, section and individual identifies his KRA. For setting KRAS certain principles have to be kept in mind i.e: It should cover 80% of the job Be capable of producing results. Preferably be maximum three in number. Be the main focus or priority areas for the planning period The various KRAs defined for the period are: o To stabilize activities of compressor plant o Handling administrative compressor activities including canteen and security services.

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3)

Goals: Goals must always be SMART i.e Specific, measurable, agreed, and

realistic

and time bound. Goals are defined in various key results areas like various goals for stabilising activities in work place are to give smooth functioning of HR activities of entire company. And for canteen and security services goal is to coordinate canteen managing committee. 4) Action plan: Goals define what is to be achieved then action plan defines how to achieve it. For each action plan it is important to define who is responsible, whose approval is needed, whose support in terms of inputs of resources is required, and who needs to be informed. Various action plans for stabilising activities in plant are: a. Daily coordination of HR activities and giving optimum results b. Recruitment of temporary workmen c. Conducting manthan meeting d. Grievance and issue with respect to compressor e. Weekly interaction with TA/TST f. In time submission of progress reports of TA/TST g. Joining and exit interviews of TA/TST. Various action plans for canteen administration: a. Daily coordination with canteen contractor b. Giving feedback about quantity and quality c. Ensuring in time delivery of tea, lunch and dinner d. Maintenance of eatables e. Maintaining hygiene in canteen 5) Performance indicator: It indicates whether the desired performance has been achieved or not. It can be present in the objective itself. In some cases ,it may be difficult to have a performance indicator in the objective, in such cases it should be ensured that the action plan must be in terms of time bound actions .

Performance indicator in respect of employees is Adherence to plan with respect to HR activities at workplace

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Performance indicator as regard canteen and security administration In time delivery of qualitative eatables in required quantity. Smooth management of security services in,jaladhar.

6)

Resources required: Required resources are the additional resources required by L in order to complete his goals. What is already present should not be included as required resources. The responsibility of providing the resources lies with L+1.If it turns out that the resources cant be provided it may mean a change in the action plan, in order to achieve the goal.

Required resources to stabilise HR activities at workplace Co-ordination with other departments Required resources for canteen and service administration Co-ordination with other departments. In time feedback from the departments. 7) Review system: If all the above parameters is fulfilled than goal is SMART but it should be reviewed periodically. The idea is not to have increased documentation, but looking at some simplistic/innovative ways in which the goals become reviewable. 8) How to set KRAs: Once the Divisional KRAS have been identified by DMC, the departmental head along with the concerned individual should meet together at least 2 months prior to the start of new financial year. The purpose of this exercise is to identify the KRAS of the department. Conducting of the will help in identifying essential areas of thrust. 9) Personal performance development: It deals with the competency areas that need for achieving the professional goals and these are classified into functional, self-managed and teamwork skills. The model is only to help the person focus on areas and come up the required skills that he needs to develop. The important thing is that to identify all the relevant skills. 10) Yearly Reviews : When to conduct? It is to be conducted by every manager with every of his L every month and a formal review is to be undertaken prior to the end of each year so that action plan and course correction can be made prior to the commencement of the next year. 20 SWOT analysis during this meeting

11)

Communication Form: - this is the final stage. It has two parts i.e. the top part which is for the planning year consists of the training needs identification and career development and the lower part for the year under review consists of ratings and comments of L and L+1. The L+1 will rate the L as SE (surpassed expectations), ME (met expectations), CB (could have done better) and BE (below expectations).

1.2 INTRODUCTION TO BAWEJA INDUSTRIES

Baweja industries is company engaged in manufacturing carpentry tools & other hand tools since 1973. Company has gained rich industrial experience since decades. Comapny was started by Ravinderjit Singh Baweja under name & style as Baweja industries' now son Mr. Punjit Singh Baweja has joined the company as director. The work was started in a small rented building of 100 sq. yds. at basti shiekh, Jalandhar with the initial investment of INR.20,000/- only. At the very start , it was though a tiny unit. in 1977 the factory was shifted from rented premises to the Company's own premises of 5000 sq. yds. The work has considerably expanded in some years as factory has been spread in about 60000 sq. yds. at kapurthala road with most modern & well equipped machinery & latest techniques of proper quality testings in both machine shop & foundry. Baweja Industries made a tremendous progress as the manufacturer and exporter of Carpentry Tools and Scaffoldings. Our innovative range of carpentry tools depicts our commitment to promote high quality tools after much research and modifications. A proficient team of professionals, with the spirit of innovation has resulted in a number of patented carpentry tools in the past few years Baweja Indusries is one of the leading manufactures & exporters of Carpentry Tools and Scaffoldings in India managed by dedicated & sincere professionals having rich industrial experience with the passion for innovation and excellence, our products have gained confidence by the way of their engineering, workmanship and quality controls. From the modest beginning as the one of the exporters from India, Baweja Industries is symbol of trust and reliability. The people who are attached with our company very well know the performance of our company products. People always count on us for best quality, price and timely dispatch. It is our constant endeavors to add new products, to our range in order to be an integrated product supplier for our customers; this helps to maintain their competitive edge. 21

We have been doing all type of printing applications on our offset printing Machines that are operated by the highly qualified technicians. Our record of achievement is the result of our entire able team working together, their dedication, commitment and enthusiasm is the force behind our success. Our web-site covers our entire present product range if there are any other items that you are interested, please let us know and we shall be very happy to develop them as per your specifications. I also welcome your comments, advice and suggestions, which will enable us to further, improve our service We look forward to your continued support and co-operation and thank you for your confidence in our products and company.

1.2.1 QUALITY ASSURANCE

We are committed towards our customers for satisfying them in terms of quantity, quality & timely delivery. We hold intense focus on customer, a committed & involved management & effective involvement of the entire work force. We take different measure from the production stage to finishing stage to ensure that the product produced is according to the quality standards & specification made by our customers. We the people at Mr. Ravinderjit Singh Baweja (Director) and Mr. Punjit Singh Baweja hold some social & environmental ethics towards the society. No Employment Discrimination No Forced Labour No Gender Bias Providing motivation through financial as well as employee welfare means. MAIN PRODUCTS Jack plane Block plane G cramp T-bar cramp Drill

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OUR STRENGTH High level of industry expertise Quick order processing Industry leading prices

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R OF L

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REVIEW OF LITERATURE Following are the reviews of literature that were considered for the purpose of the study: Dominic (1992) has conducted research and showed that Performance appraisal and employee satisfaction is high on the agenda of many companies This is because performance appraisal decisions have effects and consequences on workers' compensation and recognition. To deal with this performance appraisal business process, the authors proposed a Decision Support System (DSS) which consists of a mathematical model to evaluate the performance appraisal for individual and for departments in an organization. The findings of this paper provide important direction for the development of employee relation in an organization. Nykodym (1996) has conducted a research and showed that in recent years, widespread attention has been paid to the role of the formal appraisal process because of the belief that an effectively designed and implemented appraisal system can provide the employee, the manager, and the organization with a host of positive benefits. The benefits are: 1) provide managers with a useful communication tool for employee goal setting and performance planning; 2) increase employee motivation and productivity; 3) facilitate discussions concerning employee growth and development; 4) provide a solid basis for wage and salary administration. Aggarwal (2002) has conducted a research and concluded that performance appraisals occur in every organization. The most productive companies are those which put a significant amount of resource toward improving the skills of their managers in conducting performance appraisal There are three traditional performance appraisal techniques which are commonly used: rating, ranking and critical incident; recently, some companies have begun using "360-Degree" performance appraisal. This latter technique seeks supervisor's opinion and also seeks feedback from customers, peers and others who interact with the employee. This helps employees in understanding where they should focus. Barber (2003) this paper discusses emphasized that Performance appraisals have become vital to a given company's success in establishing an appreciation for and mindfulness of employee production. While there is no question as to their importance in overall productivity, they have also been the subject of much criticism due to their impersonal approach. Humanistic 25

development reflecting current trends with regard to performance appraisal systems are twofold in nature: 1) to realize the employee's production level and 2) establish a sense of personal appreciation beyond today's automated business community." Joshi (2004) has conducted a research and concluded that "Performance appraisal is the evaluation of an employee job performance in order to determine the degree to which the employee is performing effectively. Appraisals are important. The organization's objectives are achieved by the successful accomplishment of individual objectives. To do this, employees need feedback and help. In some small organizations, performance appraisal takes place when the owner tells an employee "You are doing a good job". In a larger organization, performance appraisals are designed to show more precisely how well workers are doing their jobs. Typically, the appraisal process involves a written assessment issued on a regular basis." Irvine (2007) has conducted a research and concluded that the majority of companies have a formal or informal performance appraisal system, which, if done correctly, will recognize and appreciate successes as well as address and offer suggestions on how to make improvements. An appraisal is a structured procedure of facilitated personal reflection that permits employees to review their professional responsibilities and outcomes and identify strengths and weaknesses.. They provide companies with the opportunity to measure their personnel's organizational assistance and determine where they would work best as part of a larger team effort. Rund et al (2007) has conducted research on individual and job based determinants of performance appraisal they investigate the use of performance appraisal in German firms. First they derive hypothesis on individual and job based determinants of performance appraisal usage. The result of hypothesis shows that performance appraisal is positively linked to an individual willingness to take risk. The performance of older employees and women is evaluated less often. The performance of employees with very high and very low responsibility is assessed less often. Sah and Rajkumar (2009) has conducted a research and concluded that "Performance appraisal is the evaluation of an employee job performance in order to determine the degree to which the employee is performing effectively. Humanistic development reflecting current trends with regard to performance appraisal systems are twofold in nature to realize the employee's

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production level and establish a sense of personal appreciation beyond today's automated business community." Shrestha et al (2010) shown has conducted research in which it was shown that Employee performance appraisal is an effective way to determine the performance of the employees in an organization. In the traditional appraisal system, the paper-based appraisal system causes a lot of manual work, is time-consuming, not secure, not flexible, and difficult to analyze the performance and see the trend of performance improvement of the employee. Under this research web-based performance appraisal system was developed which is secure, easy, and flexible and can be customized according to the specific job responsibility. This system is goal-orientated as it calculates the objective scores Greenwood (2010) has conducted a research and concluded that this paper discusses performance appraisals with a specific focus on the balanced scorecard method. The paper suggests that the balanced scorecard performance appraisal method serves an important function regarding productivity and performance, but is also largely a form of negative reinforcement that results in a drag on performance and quality.. In conclusion, the paper shows that the balanced scorecard appraisal concept and process is not entirely a negative device but it is inherently flawed by the conflict between its process and its procedure or its objective intent but subjective methodology. Sandrew (2011) has conducted a research and concluded that the majority of companies have a formal or informal performance appraisal system, which, if done correctly, will recognize and appreciate successes as well as address and offer suggestions on how to make improvements. The result of hypothesis shows that performance appraisal is positively linked to an individual willingness to take risk. The performance of older employees and women is evaluated less often. The performance of employees with very high and very low responsibility is assessed less often. These studies covered the various concepts of Performance appraisal like MBO, 360 degree feedback, critical incident techniques etc. But no work has been done to study the appraisal system and various factors involved in appraisal at Baweja Industries.

27

CHAPTER 3

NEED, SCOPE & OBJECTIVES OF THE STUDY

28

NEED, SCOPE AND OBJECTIVES OF THE STUDY

3.1 NEED Earlier researches conducted on the topic showed that performance appraisal helped in employee goal settings, increasing motivation and productivity, providing basis for wage and salary administration, providing feedback about the performance of employees and various methods used for same but no research was carried out regarding various factors which are considered for performance appraisal and criteria for target settings and to know about effectiveness of performance appraisal. So in order to fill these gaps present research is conducted to know about the various factors being considered in appraisal, criteria of target settings and to check whether the system is effective in producing good results or not and this study is carried out on Baweja Industries, Jalandhar.

3.2 SCOPE The scope of the Performance Appraisal was limited to Baweja Industries, Jalandhar.

3.3 OBJECTIVES OF THE STUDY The specific objectives of the study would include the following objectives: To know about the performance appraisal system being followed in company and at what time intervals it is done. To know about various factors which are considered while doing performance appraisal To know about various purposes being served by performance appraisal. To check the satisfaction level of employees regarding their performance appraisal. To know whether targets are properly set and defined to the employees at Baweja Industries. To know which skills are enhanced through performance appraisal.

29

CHAPTER 4

RESEARCH METHODOLOGY

30

RESEARCH METHODOLOGY

4.1

Research

Research is a procedure of logical and systematic application of the fundamentals of science to the general and overall questions of a study and scientific technique, which provide precise tools, specific procedures, and technical rather philosophical means for getting and ordering the data prior to their logical analysis and manipulation different type of research designs is available depending upon the nature of research project, availability of manpower and circumstances. According to D. Slesinger and M. Stephenson research may be defined as the manipulation of things, concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in the construction of theory or in the practice of an art. Thus it is original contribution to the existing stock of knowledge of making for its advancement.

4.2

Research Design

Research Design is an arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy on procedure. The research problem having been formulated in clear-cut term helps the researcher to prepare a research design. The preparation of such a design facilitates in conducting it in an efficient manner as possible. It is a blue print for the fulfillment of objectives and answering questions .this research is:

4.2A

Descriptive Research:

Present research is descriptive research because in this research it has been described that which method of performance appraisal is being followed in Baweja Industries and various factors considered for the same.

4.2B

Conclusion oriented research:

Present research is conclusion oriented because from the research it has been concluded that performance appraisal is not very much effective in producing better results because of lack of

31

knowledge among employees about performance appraisal system and because of presence of biasness. 4.3 Sampling Design The following factors have to decide within the scope of sample design:

i)

Sample Size: A sample of minimum respondents was selected from various divisions of Baweja Industries. An effort has been made to select respondents evenly. The survey was carried out on 50 respondents.

ii)

Sample Unit: It indicates who is to be surveyed. The researcher must define the target population that will be sampled. In this project sampling unit is the employees working in Baweja Industries.

iii)

Sampling Technique: For the purpose of research convenient sampling is used. Technical associates working in different divisions of Baweja Industries have been approached to get the questionnaire filled.

4.4 Data Collection There are two types of data sources. :

i)

Secondary data: It includes information which had already been collected by someone else and which had already been passed through the statistical process. In this case one is not confronted with the problems that are usually associated with the collection of original data. Secondary data either is published data or unpublished data. Secondary data was collected through internet and by using companys manuals.

ii)

Primary data: It includes information collected afresh and for the first time, and thus happen to be original in character. It is the backbone of any study. It was obtained from

32

respondents that are executives of each department with the help of widely used and well-known method of survey, through a well-structured questionnaire.

4.5

Limitations of the study Inadequate data: the data provided was not up to the mark due to which we faced problems in our research. Problem of conceptualization: there was problem of conceptualization and also problem relating to the process of data collection and related things. Time and cost factor: there as the difficulty of timely availability of published and relevant data this led to increase in cost. Lack of scientific method: the lack of scientific training in methodology of research was great impediment in our research program, which led to the delay of research. No response by the respondent: problem arises in sensitive issues like getting information about the financial position of the respondent.

33

CHAPTER 5

DATA ANALYSIS & INTERPRETATION

34

Table 5.1 Demographic Profile of the Respondents

Demographics Age-Group Less than 20 20-40 40-60 Above 60 Gender Male Female

No. of Respondents

Percentage

20 11 17 2

40 22 34 4

38 12

76 24

Of the total respondents majority i.e. 20 respondents belonged to the age group of less than 20 years, whereas only 2 respondents belonged to the category of age above 60 years. In concern to gender 38 respondents were male and 12 were females.

35

1. What system of performance appraisal is being used in your organization?

Table 5.2 Method of appraisal being followed in organization Methods 360 degree MBO BARS Bell curve Graphic scale No. of Respondents 50 0 0 0 0 Percentage 100 0 0 0 0

Figure 5.1 Method of appraisal being followed in organization

No. of Respondents 60

No. of respondents

50 40 30 20 10 0 360 degree MBO BARS Bell curve Graphic scale No. of Respondents

Methods of appraisal

Analysis and Interprtation: From the above table and figure it is clear that all the respondents have choosen 360 degree appraisal method.That means all the 50 respondents have marked 360 degree as the method of prformance appraisal being used in the organisation.From above we can conclude that 360 degree method is used in Baweja Industries for performance appraisal.

36

2 At what time intervals performance appraisal is being done in your company?

Table 5.3 Timings of appraisal Timing of Appraisal After every month Yearly Quarterly No. of Respondents 0 50 0 Percentage 0 100 0

Figure 5.2 Timings of appraisal

No. of Respondents

50 45 40 35 30 25 20 15 10 5 0 After every month Yearly Quarterly

No. of Respondents

Time intervals

Analysis and Interpretation: From above table and figure it is clear that all the 50 respondents have choosen the option yearly. From above we can conclude that performance appraisal is done yearly in Baweja Industries.

37

3. What purpose is being served by performance appraisal in organisation?

Table 5.4 Purpose of performance appraisal Purposes Identifying training needs Reward and recognition Potential Appraisal Job Enlargement No of respondents 3 39 5 3 Percentage 6 78 10 6

Figure 5.3 Purpose of performance appraisal

purpose of performance appraisal

Identifying training needs 10% 6% 6% Reward and recognition Potential Appraisal 78% Job Enlargement

Analysis and Interpretation: From above table and figure it is quite clear that 78% have marked the option reward and recognition and 10% respondents have marked option potential appraisal. From above it can be concluded that performance appraisal serves the purpose of reward and recognition and potential appraisal.

38

4. Please rank the following personality traits which are considerd for performance appraisal 1 to 7.1(Being the mostly considerd and 7 being least considerd)?

Initiative TeamWork Leadership Willingness To Learn Hard Work Positive Attitude Adaptability

_____________ _____________ _____________ _____________ _____________ _____________ _____________

Table 5.5 Personality trait consider for appraisal

Personality traits

No respondents

of Percentage

Initiative Team Work Leadership Willingness to Learn Hard Work Positive Attitude Adaptability

2 4 2 3 30 2 5

4 8 4 6 64 4 10

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Figure 5.4 Personality traits consider for performance appraisal

Various personality traits that are considerd for performance appraisal

4%

10%

0% 4%

8% 4% 6%

1 2 3 4 5 6 7

64%

Analysis and Interpretation:

From above table and figure it is clear that all the 64% respondents have choosen the option hardwork.So we can conclude that 64% of employees think hardwork is the most considerd personality trait in Baweja Industries.

40

5. What are the various job related factors that are considered for performance appraisal?

Table 5.6 Job related factors consider for appraisal

Factors

No of respondents

Percentage

Productivity Skill Level Improvement Done Absenteeism Quality Of Job

2 5 12 0 27

4 10 24 0 59

Figure 5.5 Job related factors that are consider for performance appraisal

Various job related factors considered for performance appraisal

0% 4%

11%

Responses Productivity Skill Level Improvement Done

59% 0%

26%

Absenteeism Quality Of Job

Analysis and Interpretation: From above table and figure it is quite clear that 59% have marked the option quality of job and 24 % respondents have marked option improvement done.So it can be concluded that quality of job and improvement done is most considered while doing performance appraisal.

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6. What help are you getting through performance appraisal?

Table 5.7 Help to employees through performance appraisal

Statements

3 Neutral

4 Agree

5 Strongly Agree

Total

Strongly Disagree disagree Knowing about your 4 1

13

19

13

186

competencies and weaknesses Planning your career Helping you in taking 7 5 14 19 5 160 4 5 14 17 11 179

training programs easily Improving Efficiency Improving relations with management 5 4 13 21 8 176 4 3 10 21 11 179

Strongly agree Neutral

50*5=250 50*3=150

Strongly disagree 50*1=50

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Interpretation: On the basis of these scores the above statements can be interpreted as follows 1. The summated score of this statement is 186.It lies between average and highest score. So it is concluded that performance appraisal helps in knowing about competencies and weaknesses. 2. The summated score of this statement is 179.it lies between average and highest score. So it is concluded that performance appraisal helps in planning career to some extent. 3. The summated score of this statement is 160.it lies between average and highest score but it is more close to average. So it is concluded that performance appraisal does not help much in taking training programs. 4. The summated score of this statement is 179.it lies between average and highest score. So it is concluded that performance appraisal helps in improving efficiency to some extent. 5. The summated score of this statement is 176.it lies between average and highest score. So it is concluded that performance appraisal helps in improving relation with management to some extent, by studying graph we can see that most of respondents have chosen the option above average. So in all it can be concluded that performance appraisal helps in knowing competencies and weaknesses, planning career and improving relation but it does not help much in taking training programs.

43

7. The targets which are used for performance appraisal are properly defined to you?

Table 5.8 Targets Communication Responses 1 Strongly Disagree Production in terms of units Scheduled time Quality standards Variance limit 5 7 14 13 7 148 2 1 8 17 21 201 4 3 10 20 12 180 3 1 14 15 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 16 187 Total

Strongly agree Neutral

50*5=250 50*3=150

Strongly disagree 50*1=50

Interpretation: On the basis of these scores the above statements can be interpreted as follows:

1. The summated score of this statement is 187.It lies between average and highest score. So it can be concluded that production targets are defined to employees. 2. The summated score of this statement is 180.It lies between average and highest score. So it can be concluded that time limit is also defined to employees. 3. The summated score of this statement is 201.It lies between average and highest score. So it can be concluded that quality standards are defined in proper manner.

44

4. The summated score of this statement is 148.It lies between least and average score. So it can be concluded that variance limit are not defined to much extent. So in all we can say that quality standards are properly defined to employees. Production in units and time limit is also defined but variance limit is not defined much.

45

8. Are you satisfied with the performance appraisal system followed in your organization?

Table 5.9 Satisfaction level of Employees Responses 1 Strongly Disagree Proper recognition work Timely adequate feedback Equal opportunities to all to grow 13 8 9 11 10 150 and 4 11 13 17 5 158 of 5 8 20 12 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 5 130 Total

Strongly agree Neutral

50*5=250 50*3=150

Strongly disagree 50*1=50

Interpretation: On the basis of these scores the above statements can be interpreted as follows: 1. The summated score of this statement is 130. It lies between least and average score. Out of 50 respondents 20 respondents have said that their work recognition is average. So from this it can be concluded that there is not much recognition of work. 2. The summated score of this statement is 158.It lies between average and highest score but it is more near to average. Out of 50 respondents 38 respondents have marked till average. So from this it can be concluded that feedback about work is not properly given to employees. 3. The summated score of this statement is 150.It is an average score. Out of 50 respondents only 10 respondents have agreed that equal opportunities are provided to all. So from this it can be concluded that there is no proper growth opportunities for all. 46

So in nutshell it can be said that there is average recognition of work and no equal growth opportunities for all.

47

9. To what extent you have enhanced your skills through performance appraisal system?

Table 5.10 Skills Enhancement Through Performance Appraisal Responses 1 Strongly Disagree Communication skills Problem solving Taking challenges Team building skills Leadership skills 3 2 9 18 18 196 3 3 7 17 20 198 up 3 2 12 19 14 191 3 3 10 27 7 182 4 4 10 25 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 7 177 Total

Strongly agree Neutral

50*5=250 50*3=150

Strongly disagree 50*1=50

Interpretation: On the basis of these scores the above statements can be interpreted as follows: 1. The summated score of this statement is 177.It lies between 150 and 250.out of 50 respondents 25 respondents have agreed that they have marked the option above average and 7 respondents have marked option highest. So it can be concluded that performance appraisal system helps in enhancing communication skills to much extent. 2. The summated score of this statement is 182.It lies between 150 and 250.More than half of the respondents have marked the option above average. So it can be concluded that problem solving abilities do enhanced through performance appraisal.

48

3. The summated score of this statement is 191.It lies between average and highest score.19 respondents have marked option above average and 14 respondents have marked option highest. SO it can be concluded that performance appraisal plays positive role in helping employees in taking challenges. 4. The summated score of this statement is 198.It lies between average and highest score. 20 respondents have marked option highest and 17 respondents have marked option above average. So it can be concluded that team building skills are enhanced to much extent through performance appraisal. 5. The summated score of this statement is 196.It lies between average and highest score. So it can be concluded that leadership skills are also enhanced through performance appraisal.

So in all it can be concluded that performance appraisal helps in enhancing all types of skills but team building and leadership skills are enhanced to maximum extent.

49

10. What are the limitations of performance appraisal system?

Table 5.11 Drawbacks of performance appraisal Responses No of Percentage

respondents Degrade the morale Biasness Affects employee Fear of demotion All of above 3 39 6 78 relationship between employer and 3 5 0 6 10 0

Figure 5.10 Drawbacks of performance appraisal

No of respondents degrade the morale

Biasness 6% 10% 0% 6%

affects relationship between employer and employee fear of demotion

78%

all of above

50

Analysis and Interpretation: From above table and graph it is clear that out of 50 respodents 39 respondents have marked option all of above.5 respondents have marked the option biasness. So it can be concluded that performance appraisal system do have drawbacks. If individual drawbacks are taken then biasness is one of the biggest drawback

51

11. What are the various advantages of performance appraisal?

Table 5.12 Advantages of performance appraisal Responses Sense of belongingness New ideas through workers participation Performance evaluation Guidance to employees All of above 44 3 2 88 6 4 No of respondents 1 0 Percentage 2 0

Figure 5.11 Advantages of performance appraisal

Analysis and Interpretation: It is clear from above table and figure that 88% respondents have marked option performance evaluation but no one has marked the option new ideas through workers participation.So it can be concluded that performance appraisal helps in evaluating the performance but it does not help much in new idea generation and creating sense of belongingness. 52

12. How to make performance appraisal system effective?

Table 5.13 Making performance appraisal system effective Responses Removing biasness Timely and adequate feedback Properly defined roles and responsibilities No of respondents 33 15 2 Percentage 66 30 4

Figure 5.12 Making performance appraisal system effective

How to make performance appraisal system effective

4% 30%

Removing biasness Timely and adequate feedback 66% Properly defined roles and responsibilities

Analysis and Interpretation: From above table and figure it is quite clear that 66% have marked the option removing biasness and 30% respondents have marked option timely and adequate feedback.So it can be concluded that performance appraisal can be made effective by removing biasness and providing timely feedback.

53

CHAPTER 6

FINDINGS OF THE STUDY

54

FINDINGS OF THE STUDY

After conducting the study on Performance Appraisal System in Baweja Industries the findings were as follows.

a)

From the study it has been found that 360 degree appraisal system is followed for

performance appraisal in Baweja Industries.

b) It has been found that performance appraisal is done yearly.

c) It has been found that performance appraisal does not help much in identifying training needs, designing good salary structure, potential appraisal and job enlargement. It helps in recognition and reward as 78% employees believe and in potential appraisal.

d) Various personality traits which are considered for performance appraisal are initiative, teamwork, leadership, willingness to learn, hard work, positive attitude and adaptability. All these factors are considered but 60% are of believe hardwork is the most considered personality trait.

e) Various job related factors which are considered for performance appraisal are productivity, skill level, improvement done, absenteeism, and quality of job. But 59% of employees believe that quality of job is most important factor and 26% are of the believe that improvement done as another important factor.

f) It has been found that performance appraisal does not help much in identifying training needs, designing good salary structure, potential appraisal and job enlargement. It helps in recognition and reward to some extent as summated score of this statement is 175 out of 250 which is highest among all.

g) It has been found that performance appraisal helps to some extent in knowing about competencies and weaknesses; improving relation with management but it does not help much in 55

taking up training programs because summated score of training is 160 which is least as compared to other factors summated score . h) From the study it has been found that targets in terms of units and time schedule are properly given to workers, they have proper knowledge about quality standards. They dont have much knowledge about variance limits as summated score for variance limit is 148 which is below average.

i) From the study it has been found that there is average recognition of work and no equal opportunities for all to grow because summated score of these factors lie below average.

j) It has been found that performance appraisal helps in enhancing all types of skills but team building and leadership skills are more enhanced and the summated score of these is 198 and 196 respectively.

k) The various drawbacks of performance appraisal revealed through study are degrade the morale, affects relationship between employer and employee and it leads to fear of demotion but biasness in this system is more serious problem of all if we consider individual factors as 10% respondents have said biasness but only 6% respondents have said that it degrade the morale and it lead to fear of demotion.

l) Performance appraisal helps in evaluating performance but it does not help much in new idea generation and creating sense of belongingness.

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CHAPTER - 7

CONCLUSION & RECOMMENDATIONS

57

7.1 CONCLUSION Performance appraisal (PA) is one of the important components in the rational and systemic process of human resource management. The information obtained through performance appraisal provides foundations for recruiting and selecting new hires, training and development of existing staff, and motivating and maintaining a quality work force by adequately and properly rewarding their performance. Without a reliable performance appraisal system, a human resource management system falls apart, resulting in the total waste of the valuable human assets a company has. There are two primary purposes of performance appraisal: evaluative and developmental. The evaluative purpose is intended to inform people of their performance standing. The collected performance data are frequently used to reward high performance and to punish poor performance. The developmental purpose is intended to identify problems in employees performing the assigned task. The collected performance data are used to provide necessary skill training or professional development. So performance appraisal is needed in every organisation. This research was taken to know how performance appraisal is done in Baweja Industries. From research it is known that Baweja Industries is following 360 degree for appraising the performance of employees and various ratings used for performance appraisal are BE, Can do better, ME And SE. The objective of the study was to know about the system of performance appraisal, to know about various factors which are considered for appraisal and to know about various purposes which are served through appraisal. The conclusion drawn is that various job related and personality traits are considered for performance appraisal and most important among all factors is quality of job, leadership, teamwork and positive attitude towards work. So in crux it can be said that performance appraisal is the most important function of human resource management. It helps in development of employees and helps an organisation to cope with the changes. But it will give positive results only if limitations like biasness is removed from it.

58

7.2 RECOMMENDATIONS OF THE STUDY After conducting the study on Performance Appraisal System in Baweja Industries the recommendations were as follows.

The purpose of performance appraisal should be properly communicated to the rater and the rate.

Equal opportunities should be provided to all the employees to grow. There should be no biasness among them.

Proper and timely feedback should be given to the employees so that they can understand what is actually expected from them and will give better results.

Supervisor should create a healthy atmosphere and motivates its subordinates to give creative ideas for improving the ways of doing work.

The appraiser should avoid halo affect while doing the appraisal.

The performance appraisal system should be such that it will help the employees in knowing their weaknesses and help them to adapt themselves according to the changing environment.

59

BIBLIOGRAPHY

60

REFERENCES OF THE STUDY

Anonymous, (2005). About us available at http://www.duro.co.in/aboutus.asp, last accessed on 31 July 2010.

Anonymous (nd), available athttp://www.scribd.com/doc/16656570/Beginners-GuidePerformance-Appraisal.asp (last accessed on 4th July, 2010).

Archer,N., (2006).Performance appraisal, Cambidge Journal, vol 11(2), Pp. 253-285, last accessed on 5 July 2010.

Archer,N., (2006).Performance appraisal,Cambridge Journal , vol 21(2), Pp. 785-818, last accessed on 30 June, 2010.

Aswathappa, K. (1999).Human Resource and Personnel Management 2/e, Tata McGraw Hill Publishers. Bentley,T., (2006).360-degree feedback, Cambidge journal, vol 9, Pp. 437-481, last accessed on 12 July 2010. Bollen, N. (2007). Performance Appraisal the concept,Cambridge journal 42(3),683-708, (last accessed on 12 July 2010). Dessler Gary, (2004).Human Resource Management, Macmillan Pvt.Ltd. Dominic,A., (2008). Decision support system for performance appraisal, oxford journal, vol 20(3), Pp. 741-768, last accessed on 17 July,2010. Martin,W., (2005). Performance Appraisal, Cambridge journal, vol 9(2), Pp. 243-279, last accessed on 20 July 2010.

61

McClintic,A., (2001).Performance appraisal, Oxford journal, vol accessed on 3 July, 2010.

15, Pp. 455-488, last

Nick.N., (1996).Public sector performance appraisal effectiveness: a case study,Oxford journal, vol 10, Pp. 1093, last accessed on 19 July, 2010.

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annexure

63

64

QUESTIONNAIRE
Dear respondent, I, , MBA students of APEEJAY Institute of Management, Jalandhar is conducting a survey on the topic Performance Appraisal System At Baweja Industries as a part of our curriculum. Your cooperation is required in this endeavor and we assure that the following questionnaire will not take much of your time.

DEMOGRAPHIC PROFILE

Name_______________________________

Age

Less than 20 years

20-40 years

40-60 years

More than 60 years

Gender

Male Designation: Manager Executive

Female

Supervisor

Q1 what system of performance appraisal is being used in your organization? a) 360 degree b)MBO c)BARS d) Bell curve 65

e) Graphic Rating Scale

Q2 At what time intervals performance appraisal is being done in your company? a) After every month b) Yearly c) Quarterly

Q3 What purpose is being served by performance appraisal in organisation ?

1. Idenitifyng Needs

2.Reward And Recognition

3.Potential Appraisal

4. Job Enlargemet

Q4. Please rank the following personality traits which are considerd for performance appraisal 1 to 7.1(Being the mostly considerd and 7 being least considerd)?

Initiative TeamWork Leadership Willingness To Learn Hard Work Positive Attitude Adaptability

_____________ _____________ _____________ _____________ _____________ _____________ _____________

Q5. What are the various job related factors that are considered for performance appraisal?

1.Productivity

2. Skill Level

66

3. Improvement Done

4. Absenteeism

5.Quality of Job

Q6 What help are you getting through performance appraisal?

1 Statements

3 Neutral

4 Agree

5 Strongly Agree

Strongly Disagree Disagree

Knowing about your

competencies and weaknesses Planning your career Helping you in taking

training programs easily Improving Efficiency Improving relations with management

Q7 The targets which are used for performance appraisal are properly defined to you? Statements 1 2 3 4 5

67

Strongly Disagree Production in terms of units Scheduled time Quality standards Variance limit

Disagree

Neutral

Agree

Strongly Agree

Q8 Are you satisfied with the performance appraisal system followed in your organization?

Statements

3 Neutral

4 Agree

5 Strongly Agree

Strongly Disagree Disagree Proper recognition of work Timely adequate feedback Equal opportunities to all to grow and

68

Q9 To what extent you have enhanced your skills through performance appraisal system? Statements 1 2 3 Neutral 4 Agree 5 Strongly Agree

Strongly Disagree Disagree Communication skills Problem solving Taking challenges Team building skills Leadership skills up

Q10 What are the limitations of performance appraisal system? a) Degrade the morale b) Biasness c) Affects relationship between employer and employee d) Fear of demotion e) All of above

Q11

What are the various advantages of performance appraisal?

a) Sense of belongingness b) New ideas through workers participation c) Performance evaluation d) Guidance to employees e) All of above

Q12 How to make performance appraisal system effective? a) Removing biasness 69

b) Timely and adequate feedback c) Properly defined roles and responsibilities Q13) Suggestions . .

Thanks.

70