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PERFOMANCE APPRAISAL OF H.R.M.
INTRODUCTION TO PERFOMANCE APPRAISAL
The process of performance appraisal helps the employees and the management to know the level of employee performance compared to the standard / pre determined level. Performance Appraisal is essential to understand and improve the employees Performance thought HRD. Performance appraisal indicates the the level of desired performance level of actual performance & gap between these two. Performance appraisal is systematic way of judging the relative importance of on employees perfuming his/ her task. is undertaken to variety of purpose such as to considered employee for salary , increase promotion , transfer termination of service to determined training and development knees of the employee & to establish basis for research & reference relating to employee matters.
Definition: - formal system of reasons & measures of future performance.
It is formal structured system is measuring evaluating job related behaviors & outcomes to discover reasons of performance & how to perform effectively in future so that employees org & society all benefits.
N.M.D.COLLEGE GONDIA
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Meaning of performance appraisal
:-Performance Appraisal is the
assessments of individuals performance in a systematic way it is a development tools used for all round development of the employee & the org the performance is measured against such future factures as job knowledge quality & quality of output initiative leadership ability co-operation judgment versalitly & health assessment should be confined to post as well as potential performance also the second definition is more focused on behavior as a part of assessment because behaviors do effect job result.
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Problem
Since performance appraisal is conducted by human beings, it is subjected to a number of errors, biases, weaknesses and pitfalls.
Some of these are discussed below. 1. The halo effect:

The halo effect is introduced when an overall impression of an individual is judged on the basis of a single trait. A high rating on one trait leads automatically to high rating on all other trait. Also, a very high rating may be given to protect an employee for whom there may be personal sympathy.
2. Constant error:
This error is a reflection on the trait of the rater. Some raters are, by nature, too liberal, others too strict and some tend towards rating most people in the middle.
3. Regency of events:
There is a tendency of many evaluators to give much more weight to the recent behavior of the candidate than the past behavior. This is based on the reflection that the future trend is established by the mere recent behavior.
4. The central tendency:

It is the most commonly found error. It is the tendency of most raters to give average ratings to all or the center of the scale. This may be due to the fact that a very high rating or a very low rating could invite questions, criticisms or explanations. Accordingly, an average rating is safer. It could also be due to the fact that the rather lacks sufficient knowledge about the applicant and hence, does not want to commit himself one way to another.
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5. Errors of variable standards:

It is quite possible that organizations follow different standards of performance. Some divisional heads may require much higher quality of performance than others.
6. Other miscellaneous biases:

There may be some built - in biases in the minds of the rater, based upon his own perception of things, people and performances. A person may be rated higher because he is a 'nice' person or because of his seniority.
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Scope
The scope of any performance appraisal should include the following: provide employees with a better understanding of their role and responsibilities; increase confidence through recognizing strengths while identifying training needs to improve weaknesses; improve working relationships and communication between supervisors and subordinates; increase commitment to organizational goals; develop employees into future supervisors; assist in personnel decisions such as promotions or allocating rewards; and allow time for self-reflection, self-appraisal and personal goal setting. (See Reference 3: Performance Appraisal System)
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OBJECTIVES
1. 2. 3. 4. 5. 6. 7. 8.
To study the various factor affecting the performance of employees. To maintain & assess the potential present in a person for future growth & development. To provide a feedback to employee regarding their performance & relating status. To Study the Respondents personal Background and their job information. To Find the satisfaction among the respondents related with policies. To find the reasons for non-satisfaction up to great extents with various policies. To make suggestions based on research finding. To learn Research methodology.
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HYPOTHESIS
1. 2. 3. 4. 5.
Internal & external factors affect the performance of the employees Salary is the prominent factors which affects the performance. The Productivity of the labors increase after providing benefits Companies with higher pay performance sensitivities achieve better performance The performance of companies with newly introduced working conditions programs are latter than other companies.
6. 7.
Only the skilled labor is responsible for the growth of the company. The respondents are satisfied up to the greater extend with labor welfare scheme.
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Introduction of Company
Tata motors Finance LTD (TMFL) is a closely held public limited company promoted by Tata motors (TML). The merger is expected to vehicle financing business of Tata finance to grow stronger by leavening its synergies of the direct business model with dealer driven business of the bureau of hire purchase and credit (BHPC) a division of Tata motors. The board of directors of Tata motors (the company) and Tata finance (TFL) today approved the merger of TFL with the company. The merger would be under a scheme of amalgamation under Section 391 and 394 of the Companies Act 1956 and would be Subject to the approval of humble High Court of Judicature at Bombay and would be effective from April 1 2013. In term of the scheme of amalgamation the would be submitted to the court all enquiry shareholders of tmf will be entitled to received eight ordinary share of the company of Rs 10/- each for every 100 equity share of Tata finance of Rs 10/- each. The exchange ratio for the number of shares of the company to the issued to the share holders of TMF is based upon a valuation conducted by M/S Sushil chandwani & Co. Chartered Accountants. TMFL has received RBI licensee for carring on NBFC activities and has commenced Operations from 1st September 2010. The Merger is expected to enable the vehicle financing business of Tata finance to grow stronger by leavening its synergies of the direct business model with the dealer driven business of the bureau of hire purchase and credit a division of the company.
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This merger with also allows the TFL shareholders to participate in the growth of the company, a leading automobile company in the country and thereby significantly gain with and upside of dividend and shareholders value creation. The purpose merger will enable the company to grow its auto financing business and after complete solutions in line with the global best practices in the auto industry. This will also enable the company to provide hedge against the cyclicality of the automotive business and significant value creation for its shareholders. Currently Tata finance and BHPC finance around 17-18 percent of the companies vehicle sales while the global benchmark for captive finance units this merger is expected to create a platform that will enable to company to accelerate its move Tata finance, a non
banking finance company, was formed by its promoters Tata industries and the companys channel partner and retail finance business. Restructuring initiatives carried out by Tata finance over the past 36 months have seen the company divest all its non-core activities and focus only on auto financing business. TFL had revenues of Rs 305 corers and posted a profit before tax of Rs 17.5 Crore in FY 12-13 In the first half of this fiscal, TFL had revenues of Rs 118 crore and posted a profit before tax of Rs 15.6 crore. The auto financing division of TFL is expected to disburse funds of approximately Rs 1500 crore during the current year as compared to Rs 551 crore disbursed in FY 12-13
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Research methodology
Title of the study :- A study of impact of performance appraisal Human resources

management
Methods
With the evolution and development of the appraisal system, a number of methods or techniques of performance appraisal have been developed. The important among them are presented below.
Traditional methods a. Graphic rating scales
b. Ranking Method c. Paired comparison d. Forced distribution method e. Checklist method i. Simple checklist ii. Weighted checklist iii. Critical incident method f. Essay or free from appraisal
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g. Group appraisal h. Confidential reports 2 Modern Methods a. Behaviorally Anchored Rating b. Assessment Centre c. Human Resources Accounting d. Management of Objective e. Psychological appraisals
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TRADITIONAL METHODS
Graphic rating scales

Graphic rating scales compare individual performance to an absolute standard. In this method, judgment about performance is recorded on a scale. This is the oldest and widely used technique. This method is also known as linear scale are simple rating scale. The appraisers, are supplied with printed forms, one for each employee. These forms contain a number of objectives, behavior and trait- based qualities and characters to be rated like quality and volume of work, job knowledge, dependability, initiative, attitude,etc. in this cash of workers and analytical ability, creative ability, initiative, leadership qualities, emotional stability in the cash of managerial personnel.
Ranking Method
Under this method, the employees are ranked from the best to worst on some characteristics. The rater first finds the employee with the highest performance and the employees with lowest performance in the particular job category and rated the former as the best and the latter as the poorest. Than the rater selects the next highest and next lowest and so on until he rates all the employees in that group.
Paired comparison
This method is relatively simple under this method the appraiser ranks the employees by comparing one employee with all other employees in the group one at a time
Forced distribution method

The rate rates his employees at the higher or at the lower end of the scale under the earlier methods. Forested distribution method is developed to prevent the rates from rating too high or
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too low. Under this method, the rather after assigning the points to the performance of each employee has too distribute his ratings in a pattern to normal frequency distribution.
Weighted checklist
The checklist is a simple rating technique in which the supervisor is given a list of statements or words and asked to check statement representing the characteristics and performance of each employee. There are three types of checklist methods, viz simple checklist, weighted checklist and forced choice method
Critical incident method

The superior continuously records the critical incidents of the employees performance or behavior relating to all characteristics ( both positive and negative) in a specially designed note book.
Essay or free from appraisal

This method requires the manger to write a short essay describing each employees performance during the rating period. This format emphasizes evaluation of overall performance, based on strength/weaknesses of employee performance rate than specific job dimentions.by asking supervisory bias and the halo effect.
Confidential reports
Assessing the employees performance confidentially is a traditional method of performance appraisal. Under this method, the superior keeps his judgment and report confidentially. In other words, the superior does not allow the employee to know the report and his performance. The superior writes the report about his subordinates strengths, weaknesses, intelligence, attitude, to work, sincerity, commitment, punctuality, attendance conduct, character, friendliness etc.
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2 Modern Methods
Behaviorally Anchored Rating
The behaviorally anchored rating scales (BARS) method combines elements of the traditional rating scales and critical incident method using (BARS) job behaviors from critical incidents- effective and ineffective behaviors are described more objectively. The method employs individuals who are familiar with a particular job to identify its major components. They than rank and validate specific behaviors for each of the components.
Assessment Centre
This method of appraising was first applied in the german army in 1930. Latter, business and industrial houses started using this method. This is not a technique of performance appraisal by itself in fact, it is a system or organization, where assessment of several individuals is done by various experts by using various techniques.
Human Resources Accounting

Human resources accounting deals with cost of and contribution of human resources to the organization. Cost of the employees includes cost of manpower planning, recruitment, selection, induction,placement,traning,development,wages and benefits erc. Employee or value added by human resources.
Management of Objective
Stated briefly, management by objectives (MBO) is a process where by the superior and subordinate managers of an organization jointly indentify its common goals, define each individuals major area of responsibility in terms of results expected of him and used this
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measures of guides for operating the unit and assessing the contribution of its members. Thus, MBO focuses attention on participative set goals that are tangible, verifiable and measurable.
Psychological appraisals
Psychological appraisals are conducted to assess the employees potential. Psychological appraisals consist of (i) in-depth interview, (ii) psychological test, (iii) consultations and discussions with the employee, (iv) discussions with the superiors, subordinates and peers and (v) reviews of evaluations.
Method of data collection:-
1.
Primary Data: -
In the primary source, researcher used the Interview scheduled
method1 for collection of data. 2. Secondary Data: research paper, etc. the secondary data sources supportive the book, internet, records,
Research design:To design means to plan of the proceeds of decision before the situation of arrives. Descriptive design will be used for the study.
Population:Survey of the 50 employees on these organizations collection of the data.
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Data analysis and interpretation

Q1 Age group of employees. No.of respondents 50 30 15 8
Response 20-30 30-40 40-50 50-60
20-30 30-40 40-50 50-60
Analysis:- it can be concluded from the above that 50 employees are 20-30 age group, 30 employees are 30-40 age group,15 employees 40-50 age groupe neutral and 8 employees are 50-60 age group Interpretatation:- Thus the above table indicates that the majority of employees are in the age group of 24-29 years.
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Q2 Response S.S.C. H.S.C. Graduation
Qualification of employees ? No. of respondents 10 30 50 57
Post-Graduation
S.S.C H.S.C. Graduation Post-Graduation
Analysis:- It can be conducted from the above that 10%employees are S.S.C. 30%employees are H.S.C. 50% employees are Graduation and 57% employees are Post-Graduation. Interpretation:- thus the above table indicates that the majority of employees are in the qualification group of post gradution.
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Q3.
Employees gender? No.of Respondents 60 40
Response Male Female
Male Female
Analysis:- It can be conducted from the above that 60%employees are male 40% employees are Female Interpretation:- Mostly all things that this is helpful in the areas it is discussed ahead and there are number of aspects which are true motivator must be studied.
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Q4
Are you satisfied with present working condition? No of Respondents 2 9 13 8
Response Fully satisfied Partially satisfied Partially unsatisfied Fully unsatisfied
Partially satisfied Partially unsatisfied Fully unsatisfied
Analysis:- It can be concluded from the above that 2 employees are satisfied, 9 are partially satisfied,13are neutral and 8 are not satisfied. Interpretation:- It Indicates that all the employees are not satisfied but no one make every one happy its a plus point for the shopper that there are some crowds who are happy with the present job.
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Q5
Are you satisfied with the salary you earn? No. of respondents 2 9 12 2
Response Fully satisfied Partially satisfied Partially unsatisfied Fully satisfied
fully satisfied Partially satisfied Partially unsatisfied fully unsatisfied
Analysis:- it can be concluded from the above that 2 employees satisfied, 9 are partially satisfied,12 are neutral and 2 are not satisfied. Interpretation:- if we want to retain the employees we have to increase the salary of the employees so that there may be less turn over.
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Q6
Is sound atmosphere created through performance appraisal? No. of respondents 20 42 26 62
Fully satisfied Partially satisfied Partially unsatisfied Fully unsatisfied
Analysis:-It can be concluded from the above that 20 employees are satisfied, 42 are partially satisfied, 26 are neutral and 62 are not satisfied. Interpretation:-this indicates that may be the organization is using some of the strict way of appraisal so that no one can say that the performance appraisal is the sound way of creating sound atmosphere.
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Q7
Perfomance appraisal is a motivator for employees? No. of respondents 15 32 8 5
Analysis:- It can be concluded from the above that 15 employees are satisfied, 35 are partially satisfied, 8 are neutral and 5 are not satisfied. Interpretation:- Many says yes because there are financial terms are associated with it but its the responsibility of the organization to let them guide about the benefits associated with this. And the level can also be increased with it.
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Q8
Appraisal leads employees to make self-appraisal? No. of respondents 23 18 25 4
Analysis:- It can be concluded from the above that 23 employees are satisfied, 18 are partially satisfied, 25 are neutral and 4 are not satisfied. Interpretation:- It helps employees to rectify theire own problem so its a duty of organization to motivate them regarding the appraisal benefits and how to conduct self appraisal and SWOT analyses.
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Q9
Perfomance Appraisal is a manitory motivator? No. of respondents 12 25 20 15
Analysis:- It can be concluded from the above that 12 employees are satisfied, 25 are partially satisfied, 20 are neutral and 15 are not satisfied. Interpretation:- It is true because promotions are mostly based on this so but one can also think that not only monitory benefit but other benefits are also given to them here are very good number of peoples who think in this terms but we have to guide them properly about the system.
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Q10
Perfomance appraisal leads to sound working atmosphere? No. of respondents 15 35 20 38
Analysis:- It can be concluded from the above that 15 employees are satisfied, 35 are partially satisfied, 20 are neutral and 38 are not satisfied. Interpretation:- its the rating system is being done in an appropriate way than it reflects the soundness of he organization here it shows that your organization is sound enough.
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Q11
Perfomance report is a without biased judgment? No. of respondents 25 18 26 10
Analysis:- It can be concluded from the above that 25 employees are satisfied,18 are partially satisfied,26 are neutral and not satisfied. Interpretation:- If employee understand that the report is made throught biased way so that it will involve my un avoidable circumstances with may make atmosphere stressful so a better care should be taken care of And try t restrict hose chances.
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Q12
Perfomance appraisal increase profit of the organization? No. of respondents 18 20 32 20
fully satisfied Partially satisfied Partially unsatisfied fully unsatisfied
Analysis:- It can be concluded from the above that 18 employees are satisfied, 20 are partially satisfied, 32 are neutral and 20 are not satisfied. Intrepretation:- When the appraisal is made the organization get the answers of all the questions where the profitability affect than if they resolved properly it is beneficial for profit maximization.
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Q13
Proper guidance can motivate employee for performance appraisal? No. of respondents 27 12 17 14
Analysis:- It can be concluded from the above that 27 employees are satisfied, are partially satisfied,17 are neutral and 14 are not satisfied. Interpretation:- Before concluding any appraisal they must be giided on category they are being evaluated so that employee cover all those areas for proving their excellence.
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Analysis of Hypothesis
After the study of the whole data which is in the form of questionnaire, the hypothesis formulated is analyzed as follows:
H-0
First Hypothesis is found to be true after the data interpretation.
H-1
Hypothesis is found to be true after the data interpretation.
H-2
Hypothesis is found to be false after the data interpretation.
H-3
Hypothesis is found to be false after the data interpretation.
H-4
Hypothesis is found to be true after the data interpretation.
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Conclusion
Concluded that the majority of respondents are performance appraisal plays a very vital role in many areas.
2 3
Concluded that the majority of respondents are to study the motivating factor. Concluded that the majority of respondents are which has a major impact on the performance appraisal and employees benefits.
Concluded that the majority of respondents are the performance appraisal will get a new way of performance and this theme can be more are less viewed us the major positive.
5 6
Concluded that the majority of respondents are major productivity of employees. Concluded that the majority of respondents are it should be taken without the biased judgments and with full dedication.
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SUGGESTION
Mention your dispointment at responsibilities in the previous review cycle. If you were so let down at the mundane tasks handed over to you, you didnt really have to wait until the performance review. You could have mentioned this when you felt the tasks were not challenging enough and you could have done much better. A Performance Rreview meeting is not the ideal time to mention this! Blame other for your non-perfomance Whatever you do, do not play the blame game. It not only reflects poorly on you, but also brings out your pettiness. Accept your mistakes gracefully, learn from them, and move on empowered with this new knowledge. Your boss will respect you more if you are open to work on your shortcomings. Lose your patience at criticism Remember to maintain a positive frame of mind all through the discussions. Even if your boss gets overly critical, put forth your point of view politely and firmly. You never know if your boss is testing you for resilience, reaction under pressure, and patience that you will need at the next level. Even if s/he were not, you would have proved that you are made of sterner stuff. Select one reporting manager over another
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If you are working with two or more reporting mangers, better have a clear idea of your reporting lines. In cash of direct or dotted line reporting, you will have to walk a fine line of balancing between your bosses. Sit with them individually to understand what each expects of you. Maintain a consolidated sheet of your KRAS to have a comprehensive view of all your expected task and responsibilities. Never, ever go public in your performance of one over another. Keep in mind that mulling over negativity of the previous failures will only broaden the divide and make things difficult for you. Ass well all knows its better to look forward and work on making your working relationship better. You must take care of your credibility in the professional world. After all, its a small world and you never know whom yo u might have to work next!.
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LIMITATION
Just like a coin. Every aspect has some pros and sons. The limitation are 1 2 3 4 An individual perception may not be correct Limitation of the time Long time consumed for making an abroach to conduct the study The responses given by the employees may not be true opinions because of various reasons.
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BIBLIGRAPHY
Sr.No.
1
Name of Book
Human Resource Management
Author
S.S.Khanka
Published by
S.Chand & Co. Himalaya
HR & Personal Mangment
Aswathappa K. Publications
Essentials of HRM & Industrial 3 Relations Subbarao P
Himmalaya Publications C.B. Mamoria & S.V. Himalaya
Personal Management Ghankar Publications
WEBSITE: www.perfomanceappraisal.com/basic.html www.perfomanceappraisal.com/bais www.wikipedia.com
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Appendix
(A) PERSONAL INFORMATION QUESTION
1 i. ii. iii. iv. 2 Age. 20-30 30-40 40-50 50-60 Qualification a. b. c. d. 3 i. ii. 4 i. ii. S.S.C H.S.C. Graduation Post-Graduation
Marital status Married Unmarried Types of gender Male Female
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(B) (JOB RELATED)

Q1 Are you satisfied with present working condition? 1. 2. 3. 4. Q2 Fully satisfied Partially satisfied Partially unsatisfied Fully unsatisfied
Are you satisfied with the salary you earn? 1. 2. 3. 4. Fully satisfied Partially satisfied Partially unsatisfied Fully unsatisfied
Q3
Is sound atmosphere created through performance appraisal? 1. 2. 3. 4. Fully satisfied Partially satisfied Partially unsatisfied Fully unsatisfied
Q4
Performance appraisal is a motivator for employees? 1. 2. 3. 4. Fully satisfied Partially satisfied Partially unsatisfied Fully unsatisfied
Q5
Appraisal leads employees to make self-appraisal? 1. 2. 3. 4. Fully satisfied Partially satisfied Partially unsatisfied Fully unsatisfied
Q6
Performance appraisal is a monitory motivator? 1. 2. 3. 4. Fully satisfied Partially satisfied Partially unsatisfied Fully unsatisfied
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Q7
Performance appraisal leads to sound working atmosphere? 1. 2. 3. 4. Fully satisfied Partially satisfied Partially unsatisfied Fully unsatisfied
Q8
Performance report is a without biased judgment? 1. 2. 3. 4. Fully satisfied Partially satisfied Partially unsatisfied Fully unsatisfied
Q9
Performance appraisal increase profit of the organization? 1. 2. 3. 4. Fully satisfied Partially satisfied Partially unsatisfied Fully unsatisfied
Q10
Proper guidance can motivate employee for performance appraisal? 1. 2. 3. 4. Fully satisfied Partially satisfied Partially unsatisfied Fully unsatisfied
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PERFOMANCE APPRAISAL OF H.R.M.

INTRODUCTION TO PERFOMANCE APPRAISAL

Definition: - formal system of reasons & measures of future performance.

PERFOMANCE APPRAISAL OF H.R.M.

Meaning of performance appraisal

:-Performance Appraisal is the

PERFOMANCE APPRAISAL OF H.R.M.

Some of these are discussed below. 1. The halo effect:

4. The central tendency:

PERFOMANCE APPRAISAL OF H.R.M.

5. Errors of variable standards:

6. Other miscellaneous biases:

PERFOMANCE APPRAISAL OF H.R.M.

PERFOMANCE APPRAISAL OF H.R.M.

PERFOMANCE APPRAISAL OF H.R.M.

PERFOMANCE APPRAISAL OF H.R.M.

PERFOMANCE APPRAISAL OF H.R.M.

PERFOMANCE APPRAISAL OF H.R.M.

Title of the study :- A study of impact of performance appraisal Human resources

Traditional methods a. Graphic rating scales

PERFOMANCE APPRAISAL OF H.R.M.

PERFOMANCE APPRAISAL OF H.R.M.

Graphic rating scales

Forced distribution method

PERFOMANCE APPRAISAL OF H.R.M.

Critical incident method

Essay or free from appraisal

PERFOMANCE APPRAISAL OF H.R.M.

Human Resources Accounting

PERFOMANCE APPRAISAL OF H.R.M.

Method of data collection:-

In the primary source, researcher used the Interview scheduled

Population:Survey of the 50 employees on these organizations collection of the data.

PERFOMANCE APPRAISAL OF H.R.M.

Data analysis and interpretation

Response 20-30 30-40 40-50 50-60

20-30 30-40 40-50 50-60

PERFOMANCE APPRAISAL OF H.R.M.

Q2 Response S.S.C. H.S.C. Graduation

Qualification of employees ? No. of respondents 10 30 50 57

S.S.C H.S.C. Graduation Post-Graduation

PERFOMANCE APPRAISAL OF H.R.M.

Employees gender? No.of Respondents 60 40

Response Male Female

PERFOMANCE APPRAISAL OF H.R.M.

Are you satisfied with present working condition? No of Respondents 2 9 13 8

Response Fully satisfied Partially satisfied Partially unsatisfied Fully unsatisfied

Partially satisfied Partially unsatisfied Fully unsatisfied

PERFOMANCE APPRAISAL OF H.R.M.

Response Fully satisfied Partially satisfied Partially unsatisfied Fully satisfied

fully satisfied Partially satisfied Partially unsatisfied fully unsatisfied

PERFOMANCE APPRAISAL OF H.R.M.

Is sound atmosphere created through performance appraisal? No. of respondents 20 42 26 62

Response Fully satisfied Partially satisfied Partially unsatisfied Fully satisfied

Fully satisfied Partially satisfied Partially unsatisfied Fully unsatisfied

PERFOMANCE APPRAISAL OF H.R.M.

Perfomance appraisal is a motivator for employees? No. of respondents 15 32 8 5

Response Fully satisfied Partially satisfied Partially unsatisfied Fully satisfied

Fully satisfied Partially satisfied Partially unsatisfied Fully unsatisfied

PERFOMANCE APPRAISAL OF H.R.M.

Appraisal leads employees to make self-appraisal? No. of respondents 23 18 25 4

Response Fully satisfied Partially satisfied Partially unsatisfied Fully satisfied

Fully satisfied Partially satisfied Partially unsatisfied Fully unsatisfied