Summer Training Report On

ANALYSIS OF EMPLOYEES ATTITUDE TOWARDS PERFORMANCE APPRAISAL

(a case study in NM Infotech)
in the partial fulfillment of the award of degree of Master of Business Administration (Session: 2010-2011)

SUBMITTED TO: MR. MANVINDER TANDON PROJECT GUIDE)

SUBMITTED BY: HARDEEP KAUR BHANDAL MBA 2nd SEM 105082250099

RIMT Institute Of Management and Technology Mandi Gobindgarh

ACKNOWLEDGEMENT
Research is an endless ocean and one requires guidance and support by several individuals in order to derive out a hand full of pearls from its depth. It is difficult to acknowledge so precious a debt as that of learning, as it is the only debt that is difficult to repay except through gratitude. I take the privilege to pay my deepest appreciation and heartiest thanks to all my teachers of SSIT, whose constant guidance is unbounded source of inspiration for us. I would like to express my sincere thanks to my Project guide Mr. Manvinder Tandon who provided me valuable insights on my topic and helped me to clearly chalk out my area of study. Last but not the least; I would take the opportunity to thank my parents, friends and all those visible and invisible hands that contributed to make this project a success.

(HARDEEP KAUR)

EXECUTIVE SUMMARY
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. In many organizations - but not all - appraisal results are used, either directly or directly, 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.) The purpose of this study has been to determine whether the performance appraisal was used for employee development and whether the appraisal was emphasized as an important part of the performance appraisal process. Also whether the performance appraisal helps in increasing companys profitability. Our study suggested that the performance appraisal has helped in increasing the profitability of SAIL which was clearly shown by their performance on BSE Sensex. Certain loop holes has been determined and suggestions were made.

TABLE OF CONTENTS

S.NO 1 2 3 4 5 6 7 8 9 10

TOPIC INTRODUCTION OF THE COMPANY INTRODUCTION OF THE TOPIC OBJECTIVES OF THE STUDY RESEARCH METHODOLOGY DATA COLLECTION & ANALYSIS FINDING OF THE STUDY QUESTIONNARIE CONCLUSION SUGGESTIONS BIBLOGRAPHY & REFERENCES

INTRODUCTION OF THE COMPANY

NM Infotech is one of the pioneers in the Indian Global market, established in 2002. NM Infotech a Growing software company in Mohali. It deals in Software Product Development and provides services for all web application. It offers differentiated technology and dedicated service support infrastructure as per the needs and requirements of customers. 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. 6 Months industrial training provide in Chandigarh, with quality faculty and great atmosphere for learning, Training for the best JAVA Courses. Professionals in DOT NET, java, PHP , ERP. Student are trained in live projects. NM Infotech is an organisation of Designers, Devlopers and Analyst. your all web problems are sorted in NM Infotech. Mission of NM Infotech: "To become the leading organization for ERP solutions and service providers in the world". Vision of NM Infotech: 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.

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 a 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 is 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.

Company services: Software Solutions Security Solutions Corporate Training Industrial Training Campus Training Projects handled: Guest house management system ERP solutions Online grocery Cyber access control

PUNCH LINE Quality Speaks Itself

INTRODUCTION OF THE TOPIC

EMPLOYEES ATTITUDE
"An employees attitude toward the job's importance and the company had the greatest impact on loyalty and customer service then all other employee factors combined.

MEASURING EMPLOYEE ATTITUDE Organizations are increasingly interested in retaining right talents while targeting for new talents; measuring employees attitude provides an indication of how successful the organization is in fostering a conducive environment which nurtures great attitude among employees towards their Job and company . Because attitude is basically a psychological state, care should be taken in the effort of quantitative measurement, although a large quantity of research in this area has recently been developed.

The usual measures of employee attitude involve an employee attitude survey with a set of statements using a Likert Technique or scale. The employee is asked to evaluate each statement in term of their perception on the performance of the organization being measured. The surveys of this type provides an understanding how the employee perceives the organization. This project has been undertaken to analyze the employees attitude towards performance and potential appraisal i.e. how employees perceive these appraisals in the organization and the effect of these appraisals on the productivity of employees in the organization.

PERFORMANCE APPRAISAL
Appraising the performance of individuals, groups, and organization is a common practice of all the societies while in some instances, the appraisal process is structured and formally sectioned, in other instances, the process is informal and integral part of daily activities. Once the employee has been selected, trained and motivated, he is then appraised for his performance. Performance appraisal is the step where the management finds out how effective it has been at hiring and placing the employees. If any problems are identified, steps are taken to communicate with the employees and to remedy them. Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. According to Flippo, performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future. It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the managements interest in the progress of the employees.

OBJECTIVES OF PERFFORMANCE APPRAISAL:

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior subordinates and management employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future

OTHER TERMS WHICH ARE USED FOR PERFORMANCE APPRAISAL;

PERSONNEL APPRAISAL EMPLOYEE ASSESSMENT PERFORMANCE RATING EMPLOYEE EVALUATION & MERIT RATING EMPLOYEE PERFORMANCE REVIEW

Performance appraisal means evaluating an employees current or past Performance relative to the persons performance standards. Appraisal involves: (I) Setting work standards (ii) Assessing the employees actual performance relative to these standards (iii) Providing feedback to the employees with the aim of motivating that person to eliminate deficiencies or to continue to perform above par. Managers usually conduct the appraisal using a predetermined and formal method. Various methods of appraisal include:1) Traditional methods 2) Modern methods. TRADITIONAL METHODS 1. ESSAY APPRAISAL METHOD This traditional form of appraisal, also known as Free Form method involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. A major drawback of the method is the inseparability of the bias of the evaluator.

2. STRAIGHT RANKING METHOD

This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation. 3. PAIRED COMPARISON A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings. 4. CRITICAL INCIDENTS METHODS In this method of Performance appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behaviour as and when they occur. 5. FIELD REVIEW In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors personal bias. 6. CHECKLIST METHOD The rater is given a checklist of the descriptions of the behaviour of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.

7. GRAPHIC RATING SCALE

In this method, an employees quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on-the-job performance of the employees. For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory. 8. FORCED DISTRIBUTION To eliminate the element of bias from the raters ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own discretion.

Modern methods
In this method, an employees actual job behaviour is judged against the desired behaviour by recording and comparing the behaviour with BARS. Developing and practicing BARS requires expert knowledge.

HUMAN RESOURCE ACCOUNTING METHOD Human resources are valuable assets for every organization. Human resource accounting method tries to find the relative worth of these assets in the terms of money. In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees. The cost of employees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them.

360 DEGREE FEEDBACK

360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees performance comes from all the sources that come in contact with the employee on his job. 360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the on-the-job performance of the employee.

360 degree appraisal has four integral components: 1. Self appraisal 2. Superiors appraisal 3. Subordinates appraisal 4. Peer appraisal. Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superiors appraisal forms the traditional part of the 360 degree appraisal where the employees responsibilities and actual performance is rated by the superior. Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superiors ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees abilities to work in a team, co-operation and sensitivity towards others.

Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behavior and performance. It provides a "360degree review" of the employees performance and is considered to be one of the most credible performance appraisal methods. 360 degree appraisal is also a powerful developmental tool because when conducted at regular intervals it helps to keep a track of the changes others perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc.

MANAGEMENT BY OBJECTIVES
The concept of Management by Objectives (MBO) was first given by Peter Drucker in 1954. It can be defined as a process whereby the employees and the superiors come together to identify common goals, the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed. The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employees actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and the choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.

UNIQUE FEATURES AND ADVANTAGES OF MBO

The principle behind Management by Objectives (MBO) is to create empowered employees who have clarity of the roles and responsibilities expected from them, understand their objectives to be achieved and thus help in the achievement of organizational as well as personal goals. Some of the important features and advantages of MBO are: Clarity of goals With MBO, came the concept of SMART goals i.e. goals that are: Specific Measurable Achievable Realistic, and Time bound.

The goals thus set are clear, motivating and there is a linkage between organizational goals and performance targets of the employees.

The focus is on future rather than on past. Goals and standards are set for the performance for the future with periodic reviews and feedback. Motivation Involving employees in the whole process of goal setting and increasing employee empowerment increases employee job satisfaction and commitment. Better communication and Coordination Frequent reviews and interactions between superiors and subordinates helps to maintain solve many harmonious relationships within the enterprise and also problems faced during the period.

Thus, when properly conducted, performance appraisal not only let the employee know about how well he is performing but also influences the employees future level of effort, activities, results and takes appropriate direction. Under performance appraisal, not only the performance of an employee is evaluated but also his potential for development.

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
Research methodology is the systematic method/process dealing with identifying problem, collecting of facts or data, analyzing these data and reaching at certain conclusion either in the form of solutions towards the problem concerned or certain generalization for some theoretical formulation. It also comprised of a number of alternative approaches and inter-related and frequently overlapping procedures and practices. Since there are many aspect of research methodology, the line of action has to be chosen from a variety of alternative. The choice of suitable method can be arrived at through assessment of objectives and comparison of various alternatives. Research methodology used in the present study is as under: Type of research: Sample Design: Present study is Descriptive in nature. In most of the research studies, it become almost

impossible to examine the entire universe; the only alternative thus is to resort to sampling. The present study is also of the same nature. According to Manheim (1977), a sample is a part of the population which is studied in order to make inferences about the whole population. Thus a good sample is a miniature version of the population and good sample design involve the following: Sample Unit Sampling Techniques Sample Size

Sample Unit: Since the objective of the present study was to analyze the employees attitude towards potential and performance appraisal,thus employees of Thomson press ar taken as sampling unit. Sampling technique: The procedure that a researcher adopts in selecting the unit for the sample is known as sampling technique. In the present study, Non-probability sampling

has been used. Judgmental sampling has been used but utmost care has been taken employees from all the profiles in the organization. Sample Size: The sample size was taken as 50. The 10 questionnaires were discarded because of the incomplete information. Thus the effective sample size was 40. Data collection method Both primary and secondary data has been collected in this research. Secondary data has been collected from journals, websites, and research articles from magazines while the primary data has been collected through the well-structures comprehensive questionnaire.

Thus the decisions were taken on the basis of following attributes: Data Source Research approaches Research instrument Sampling plan Contract method Survey Questionnaire Sample size direct interview Primary data & secondary data.

DATA COLLECTION & ANALYSIS

DATA COLLECTION
To make a decision in any business situation we need data. Facts expressed in quantitative form can be termed as data. Success of any statistical investigation depends on the availability of accurate and reliable data. So the data can be classified either as primary data or secondary data. PRIMARY DATA: It is the data, which is collected afresh for the research study. This type of data is collected for the very first time by the investigator himself and has never been used by any other person earlier. The various methods of the collection of the primary data are as follows: Questionnaire Observation Interviews SECONDARY DATA: When the data is collected by one person and used by the others for their research, this type of data is called secondary data. The researcher uses the data for his research, which is already available or collected by other. The various methods of collection of secondary data are as follows: Newspapers Magazines Reports & Journals Internet For this project, I have used both the types of data i.e. primary as well as secondary data.

Primary Data used in this project are as follows: Questionnaire filled by the employees. Personal Interviews of the employees.

Secondary Data used in this project are as follows: Reports of the organization. Journals of the organization. Internet (Website of the organization)

DATA ANALYSIS
1.) AWARENESS OF APPRAISAL SYSTEMS AMONG THE

EMPLOYEES IN THE ORGANIZATION. Performance appraisal

A areness of perform w ance appraisal

N O 13%

YS E 87%
YE S N O

Potential appraisal.

Awareness of potential appraisal

13% 25%

13% YES NO MODERATELY

49% CANT SAY

ANALYSIS: In sample size of 40, 87% of the employees are fully aware of performance appraisal in the organization but 13% of employees are not aware of this while analysis of awareness of potential appraisal shows that 49% employees are fully aware of the potential appraisal while 25% are somewhat aware, 13% are not aware and cant say respectively. INTERPRETATION: This analysis shows that most of the employees are aware of the performance appraisal in the organization but the awareness of potential appraisal of employees in the organization is not very high. This shows that potential appraisal being a newer concept is not known much to the employees even when it is used by the employees generally before giving promotions and new projects.

2.) UNDERSTANDING OF REASON OF USAGE OF THESE APPRAISALS. PERFORMANCE APPRAISAL:

Performance appraisal
25%

13%

62%

YES

N O

SOMEWH AT

ANALYSIS: In the sample 62% of the employees completely understand why it is used in the organization while 25% of the employees understand it a little bit but not completely and 13% of the employees do not understand why it is used in the organization. INTERPRETATION: More than half of the employees understand why it is used in the organization but still high percent of employees do not understand it so it shows lack of communication with regard to appraisal in the organization.

3.) HOW MANY TIMES YOU HAVE BEEN APPRAISED LAST YEAR? PERFORMANCE APPRAISAL:

Performance appraisal
25% 37%

38%

ONCE

TWICE

THRICE

ANALYSIS: In the sample 25% are appraised thrice a year, 38% of them are appraised twice and 37% are appraised once a year. INTERPRETATION: This analysis shows that all the employees undergo this appraisal once a year and more than half of the employees undergoes this appraisal twice or more in a year indicating that this is a regular affair in the organization.

POTENTIALAPPRAISAL: Potential appraisal

0%

38%

62%

ON CE

TWICE

TH RICE

ANALYSIS: In the sample 62% of the employees are appraised once a year while 38% says that they are appraised twice a year. INTERPRETATION: With the analysis it is concluded that potential appraisal is not as regularly done in the organization as the performance appraisal although it is conducted once a year for all the employees.

4.) WHO IS THE APPRAISER? PERFORMANCE APPRAISAL:

Performance appraisal
25%

0%

75%

SUPERIOR

PEER

TOP MANAGEMENT

ANALYSIS: In the sample 75% of the employees performance are been appraised by their superiors while 25% of the employees are appraised by their peers. POTENTIAL APPRAISAL:

Potential appraisal
13% 25%

62%

SUPERIOR

PEER

SELF

ANALYSIS: in the sample 62% of employees potential is been appraised by their superiors while for 25% of the employees self appraisal technique of potential appraisal is used and 13% employees are been appraised by their peers for judging their potential. INTERPRETATION: Most of the employees potential is been appraised by the superiors and about 25% of the employees are provided the opportunity to appraise themselves this shows that a certain level of decentralization is their in the organization which is essential for the success of the organization.

5.) FAIRNESS AND JUSTIFICATION OF THE APPRAISAL PROCESS. PERFORMANCE APPRAISAL

Performance appraisal

38%

62% 0% 0%

YES

MODERATELY

NO

CANT SAY

POTENTIAL APPRAISAL: Potential appraisal

13% 12%

13%

62%

YES

MODERATELY

NO

CANT SAY

ANALYSIS: In the sample almost employees sees the performance appraisal as a fair and justified process and some dont have any opinion about the fairness of the process while the process of potential appraisal is not seen as fair and justified process by the employees as performance appraisal. Some of the employees see it as a unfair and unjustified process. INTERPRETATION: From the above analysis it can be concluded that the process of appraisal of performance in the organization is perceived fair and justified while the potential appraisal is not so fair and justified it is because the employer is not able to completely find the potential of the employees and also the less awareness of this appraisal process in the organization.

6.) DOES THESE APPRAISALS RESULTS IN MOTIVATION? PERORMANCE APPRAISAL Performance appraisal
13% 0% 13%

74%

YES

MODERATELY

NO

CANT SAY

POTENTIAL APPRAISAL Potential appraisal

0% 25% 13%

62%

YES

MODERATELY

NO

CANT SAY

ANALYSIS: the performance appraisal process completely motivates about 75% of the employees in the organization while the potential appraisal process only moderately motivates about 62% of the employees the organization and also about 25% of them are not at all motivated at all.

INTERPRETATION: This analysis shows that the performance appraisal is more helpful in motivating the employees while potential appraisal is able to motivate employees only moderately. This shows that the employees performance is properly realized and analysed in the organization while the employers are unable to properly realize their potential i.e talents.

7.) DOES THESE APPRAISALS CREATE ANY ANXIETY OR STRESS IN THE EMPLOYEES? PERFORMANCE APPRAISAL
Performance appraisal
5% 10%

21%

64%

YES

MODERATELY

NO

CANT SAY

POTENTIAL APPRAISAL
Potential appraisal
15% 5%

25%

55%

YES

MODERATELY

NO

CANT SAY

ANALYSIS: from the sample study it is found that this appraisal does not cause any anxiety or stress to most of the employees however about 30% of the employees feel some mental stress and anxiety with these appraisals. INTERPRETATION: It is concluded that these appraisal are perceived by most of the employees as necessary in the organization and they take these appraisals in a positive manner.

8.) OUTCOME OF THE APPRAISALS? PERFORMANCE APPRAISAL

Performance appraisal
13% 25%

25%

37%

PROMOTION JOB ROTATION

JOB ENRICHMENT NO CHANGE

ANALYSIS: in the sample about 37% of the employees get their job enriched, 25% job rotation,25% promotion and 13% no change as a result of their performance appraisal. INTERPRETATRION: Generally this performance appraisal results in job enrichment of employees in the organization followed by promotion and job rotation.

POTENTIAL APPRAISAL Potential appraisal

13% 25%

62%

NEW PROJECTS

NO CHANGE

CANT SAY

ANALYSIS: In the sample the potential appraisal results in no change for more than half of the employees while some 25% of the employees get new projects after their potential appraisals. INTERPRETATION: It is concluded that this potential appraisal is not resulting in more fruitful results for the employees as they are already provided with the projects as per their potential.

9.) LEVEL OF SATISFACTION AMONG EMPLOYEES WITH THE RESULTS OF THE APPRAISAL? PERFORMANCE APPRAISAL Performance appraisal
13%

25% 62% 0%

YES

NO

CANT SAY

MODERATELY

POTENTIAL APPRAISAL: Potential appraisal

25%

50%

25% 0%

YES

NO

CANT SAY

MODERATELY

ANALYSIS: About 62% of the employees are moderately satisfied with the results of performance appraisal while 50% of the emlployees are satisfied with the potential appraisal.

INTERPRETATION: Most of the employees are satisfied with the process of these appraisals in the organization however level of satisfaction of potential appraisal is less then the performance appraisal. This appraisal also showing that employers are able to judge the potential and performance of employees upto to a certain level thus leading them to satisfaction.

10.) REGULARITY OF APPRAISAL PERFORMANCE APRAISAL

Perform aNce appraisal

NO 25%

YE S

N O

YS E 75%

POTENTIAL APPRAISAL:

Potential appraisal

0% 25%

75%

YES

NO

ANALYSIS: Out of the sample about 75% of the employees says that these appraisals are regularly conducted in the organization. INTERPRETATION: It is concluded that these appraisals are a regular affair in the organization as helping the organization to increase its effectiveness.

11.) EMPLOYER REALLY ABLE TO FIND OUT THE POTENTIAL OF THE EMLOYEES TRULY? Realisation of potential by employer

5% 8% 3%

84%

ALWAYS

SOMETIMES

NEVER

CANTSAY

ANALYSIS: out of the sample about 84% of the employees feel that their potential is realized completely sometimes only while 10% dont have any opinion whether their potential is realized completely by their employer or not. INTERPRETATION: As the potential is not been realized by the employers completely always so there is a need of involving the employees also in this appraisal so as to get more fruitful results of appraisal and realizing their potential to the fullest so as to make the optimal use of the talent of available man power.

12.) NEW PROJECTS ARE GIVEN TO EMPLOYEES ON THE BASIS OF WHICH APPRAISAL?

prefrence for assisgning new projects

13%

38%

49%

Potential

Performance

Both

ANALYSIS: In the sample 49% of the employees are assigned on the basis of performance appraisal while 38% of the employees are assigned new projects on the basis of potential appraisal while 13% of the employees say that both the appraisals are considered for assigning new projects. INTERPRETATION: Analysis shows that performance appraisal is been preferred by employers for assigning new projects this is because of the lack of awareness of potential appraisal benefits and also it is a newer concept so preferred less.

13.) WHICH APPRAISAL IS A BETTER TECHNIQUE? comparision of techniques

25%

25%

50%

Potential

Performance

Cant say

ANALYSIS: Out of the sample 50% of the employees believe that performance appraisal is a better technique while 25% believes potential appraisal is a better technique and rest 25% can not say anything about which appraisal technique is better. INTERPRETATION: Both the appraisals are equally important for the organization to attain the objectives of the organization.

14.)

EMPLOYEES

OPINION

ON

WHICH

APPRAISAL

TECHNIQUE SHOULD BE LAID MORE EMPHASIS ON? Employees opinion

25% 38%

37%

POTENTIAL

PERFORMANCE

BOTH

ANALYSIS: In the sample 38% of the employees believes that both the appraisals should be emphasized equally while 37% of the employees says that performance appraisal should be emphasized by employer and 25% of the employees prefer potential appraisal to be emphasized by their appraiser. INTERPRETATION: Both the appraisals have their own benefits so most of the employees believes that both the appraisals together should be emphasized for appraising them.

15.) DO THESE APPRAISALS PROVIDE WITH THE UNBIASED RESULTS? Unbiasness in appraisal results
13% 0%

25% 62%

YES

SOMETIMES

NO

CANT SAY

ANALYSIS: In the sample 62% of the employees says that these appraisals provide unbiased results sometimes only while 25% says that they did not get unbiased results from these appraisals and 13% cant say anything. INTERPRETATION: There is a need to make these appraisals more transparent and fair so as to increase the effectiveness of the organization.

16.) ESSENTIALNESS OF THESE APPRAISALS IN CREATING WORK CULTURE OF COOPERATION AND TEAM WORK IN THE ORGANISATION? Essentiality in creating work culture
14%

14% 58% 14%

YES

MODERATELY

NO

CANT SAY

ANALYSIS: In the sample 58% employees believes that these appraisals are essential for creating a work culture of cooperation and team work in the organization while 14% of the employees do not believe that it is essential. INTERPRETATION: This analysis shows that these appraisals are necessary for creating a work culture of cooperation and team work.

17.) IMPACT OF THESE APPRAISALS ON THE DEVELOPMENT OF ORGANISATION Impact on organisation development

8%

30%

62%

POSITIVE

NEUTRAL

NEGATIVE

ANALYSIS: In the sample 62% of the employees believe that these appraisals have a positive impact on the development of the organization and 8% of the employees believe that these appraisals create a negative impact on the organization while rest 30% believes that these appraisals have no effect. INTERPRETATION: These appraisals are benefitial for the organization as it allows the organization to achieve the goals in an effective manner.

18.) REALISATION OF TRAINING NEEDS FROM THESE APPRAISALS? Training needs

2% 2% 29%

67%

ALWAYS

SOMETIMES

NEVER

CANTSAY

ANALYSIS: In the sample 67% of the employees says that these appraisals sometimes result in training needs and 29% says that there is always a need of training been realized with these appraisals. INTERPRETATION: These appraisals are benefitial for the organization as they allow the employers to find out the training needs so that they could take a timely action.

19.) DOES COMPENSATION PACKAGE IS DESIGNED ON BASIS OF THESE APPRAISALS?

relation b/w compensation design and0% 13% appraisal

49% 38%

YES

MODERATELY

NO

CANTSAY

ANALYSIS: 49% of the employees say that their compensation package is not related at all with their appraisals while 38% believes that sometimes it is related and 13% of the employees believe that it is related with their appraisals. INTERPRETATION: These appraisals have no impact on the compensation package of the employees.

FINDINGS OF THE STUDY

FINDINGS:
As evident from the data analysis various findings are as follows: Awareness: most of the employees were aware of these appraisals but the level of awareness of performance appraisal is higher than potential appraisal. Understanding: although employees know about these appraisals but very few completely understands why these appraisals are done and used in the organization. Regularity: These appraisals are regularly conducted in the Motivation: these appraisals helps in motivating the employees Satisfaction: employees are satisfied with the results of these organization. thus are beneficial for both the employees and organization appraisals but this satisfaction level is not as desired so there is a need to make these appraisals more fair and justified. Potential appraisal being a newer concept is not preferred much as performance appraisal because of the lack of awareness of this appraisal technique. These appraisals help the organization to find out the training These appraisals are also creating a work culture of cooperation needs in the organization. and team work in the organization thus impacting the organization development in a positive manner. These appraisals are not considered much while designing the Employees want that both the appraisals should be given equal There is a need of making these appraisals more fair and justified Employers are not able to realize the employees potential fully compensation package of employees. weightage for appraising an employee. so as to achieve unbiased results. through these appraisals so more communication and participation of employees in these appraisals is required.

These appraisals are not creating any mental stress or anxiety in These appraisals are very essential for the effective working of

the employees even when it is not motivating the employees. the organization.

CONCLUSION

CONCLUSIONS
In a nutshell, the analysis of the data collected from the sample revealed that the employees have a positive attitude towards the conductance of these appraisals, they believe that these appraisals are necessary in the organization for creating a work culture of team work and cooperation and to attain the organizational objectives effectively. Also the employees want a more effective appraisal system that is they want that their participation should be their and these appraisals should be more transparent and fair. Out of the two appraisal systems viz. performance and potential appraisal there is still more emphasis laid by the organizations although potential appraisal is a future oriented approach its lack of awareness and it being a newer approach it is been resisted by some in the organization but because of the benefits which this appraisal will yield employers are moving towards making a balance between the two appraisals in the organization.

SUGGESTIONS

SUGGESTIONS
There is a need of creating more awareness about potential appraisal as it being a future oriented approach can yield better results for the organization. The employers must relate the designing of the compensation package with the result of their appraisals as this will help in increasing the employees motivation level and also will result in better performance of their job. These appraisals need to be done with utmost care as they help the organization to optimally utilize their man power. These appraisals should also be used in succession planning of employees of the organization. Potential appraisal should also be done regularly as performance appraisal in the organization. Employees participation in these appraisals should be there as it will allow them to attain success. There should be a better communication among employees and appraiser so that these appraisals could result n unbiased and fair results. The employers must use these appraisals as a tool for motivating employees to make them more effective. A proper feedback must be given to employees so that they can take the required actions for improving their performance and potential to the desired level.

QUESTIONNARIE

QUESTIONNAIRE
1) NAME 2) DESIGNATION 3) AGE GROUP 20-30 30-40 40-50 50-60

4) Do you know what performance appraisal is? YES NO 5) Do you understand why it is used? YES SOMEWHAT NO MORE

6) How many times you have been appraised last year? ONCE TWICE THRICE 7) Who appraises your performance? TOP MANAGEMENT

PEERSSUPERIORS CANT SAY

8) Do you feel that the process is fair and justified? YES MODERATELY NO

9) Does the process of performance appraisal motivate you in any way? YES MODERATELY NO CANT SAY 10) Does this appraisal create anxiety or mental stress to you? YES MODERATELY NO CANT SAY 11) What is the outcome of the appraisal? PROMOTION JOB ENRICHMENT JOB ROTATION NO CHANGE 12) Do you feel satisfied with the results? YES MODERATELY NO CANT SAY

13) Is this appraisal a regular affair in your organization? YES NO 14) Who appraises your potential? SUPERIOR PEER Self MORE

15) How many times you go through the process in a year? ONCE TWICE THRICE 16) Do you feel the process is fair and justified? YES MODERATELY NO

CANT SAY

17) Does this process of performance appraisal create mental stress or anxiety in you? YES MODERATELY NO CANT SAY 18) Do you feel satisfied with the results of appraisal? YES MODERATELY NO 19) What you feel is a better technique of appraisal? POTENTIAL PERFORMANCE CANT SAY

CANT SAY

20) Which technique according to you should be laid more emphasis on by your employer? PERFORMANCE POTENTIAL BOTH EQUALLY

BIBLIOGRAPHY

BIBLIOGRAPHY & REFERENCE

WEBSITES BOOKS Luthans, Fred, Organizational behavior, McGraw Hill Book Company, Memoria C.B., Personal Management, Himalaya Publishing House, Robbins Stephen, P. 1993 Organizational Behavior, Prentice-Hall of Davis, K., Organizational Behavior. Singapore. Bombay. India Private Limited, New Delhi. http://appraisals.naukrihub.com www.googlesearch.com www.fdu.edu/admin.com www.openlearning.com www.thomsonpress.com