Jaypee Project

Performance Appraisal at Jaypee
Summer Internship Report

On
Evaluation of Performance Appraisal
At
In Partial Fulfillment of Award
of
POS !RA"#AIO$ "IP%O&A I$ &A$A!E&E$
Su'mitted
(y
SARI)A !#PA
&*(A +,-./+,-0
Su'mitted to
&r* $*)*S1AR&A
I$SI#E OF A"2A$3E" &A$A!E&E$ 4 RESEAR315
!1A6IA(A" 7#*P8
1
"E3%ARAIO$
I, Sarika Gupta, student of MBA from Institute of Advanced Management, Ghaziabad,
hereby declare that I have completed Summer Internship on !valuation of "erformance
Appraisal# as part of the course re$uirement%
I further declare that the information presented in this pro&ect is true and original to the
best of my kno'ledge%
"ate9 (((% SARI)A !#PA

Place9 Ghaziabad MBA )*1+, )*1-
)
Ac:nowled;ement
"erseverance, Inspiration, and motivation have al'ays played a key role in the success of
any venture% At this level of understanding, it is often difficult to understand the 'ide
spectrum of kno'ledge 'ithout proper guidance and advice .ence, I take opportunity to
e/press my heartfelt to &r* Anil &ohan5 !eneral &ana;er <1R (AJAJ
1I$"#SA$ %"* &A$A!E&E$ OF &= I$SI#E%

0o task is a single person effort, same is 'ith this pro&ect% 1hus I 'ould like to e/tend my
sincere thanks to 'ho helped me in accomplishing my pro&ect%
I 'ant to thank &r* (*(* Sin;h 7Personnel &ana;er8 'ho has keenly co, operated and
helpful to me sorting out all the difficulties%
I am really thankful to &R* R*P Sinha 7&ana;er8 for there valuable guidance for
completion of my pro&ect% I am thankful to them for accompanying and guiding me in this
suvey%
I o'e my pro&ect success to all faculty members, for providing us 'ith this 'onderful
opportunity and guidance

Thank You
+
A(SRA3
I am indeed feeling very lucky to have a chance to do my "ro&ect in the stream of
"erformance Appraisal% 2uring my "ro&ect 3ork, I have been getting continuous
practical insights about performance appraisal% My pro&ect 'as a delight as my mentor
designed it in that very manner% "erformance appraisal is a process of summarizing,
assessing and developing the 'ork performance of an employee% It is the step 'here
management finds out ho' effective it has been at hiring and placing employees%
0o one ever refutes the need to re'ard performance% "erformance appraisal is an
essential and inescapable managerial activity for enhancing the performance of an
organization% It is a format e/ercise in 'hich an organization makes an evaluation, in
document form, of its employees in terms of their contribution made to'ards achieving
organizational ob&ectives% 1hrough this pro&ect report, 'e have tried to provide a
coordinated, consistent, concise and integrated treatment of the "erformance Appraisal
Systems# prevalent in the present day%

4
A(%E OF 3O$E$S
2eclaration ii
Ackno'ledgement iii
Abstract iv
3hapter/-/ company profile >/-?
3hapter/+/ Introduction ->/-@
3hapter/./ Research O'Aectives 4 &ethodolo;y +,/+B
3hapter/./ %iterature Review +B/?B
Approaches to performance appraisal
Methods5 techni$ues of appraisal
"roblems 'ith appraisal methods
!ssentials of a good appraisal system
Methods of performance appraisal
3eighted checklist method
3hapter/B/ Primary Findin;s 4 Analysis ?0/C@
3hapter/0/ 3onclusions 4 Implications @,/@-
3hapter/?/ Recommendation @- / @+
AnneDure @B/@@
(i'lio;raphy @@/-,,
-
Performance Appraisal at Jaypee 6
31APER/-
3O&PA$= PROFI%E

Indian 7ompany is at the crossroad today% 1he .istoric Structure reforms initiated by
govt% have irrevocably transformed the Indian Business environment% 2eregulation
and 2econtrol, 2ismantling of trade barriers, partial convert ability and
encouragement for foreign investor pose challenges to industry and have thro'n up
avenues for gro'th through intensive competition%
1he Ba&a& hindustan Group is a 'ell,diversified infrastructural industrial conglomerate in
India% 8aiprakash Industries has accepted the 7hallenges and its strength involvement in
the 7onstruction of 9iver :alley pro&ect, .ydropo'er, Manufacturer of cement, it;s a
large e$uity base and its 'ealth of dedicated human resources shall be use to greater
advantage in entering ne' ventures in the core sector and 8aiprakash Industries today
poised to be a ma&or player on the Indian industrial scenario% 8aiprakash industries limited
in 1<=6 through amalgamation of 8aiprakash Association "vt >td% ?@ounded in 1<A<B, a
reputed 7onstruction 7ompany 'ith 8aypee 9e'a 7ement >td% is headed by Mr%
8aiprakash Gaur 8i, 7hairman, Managing director of the company along 'ith his
associates founded the company% 1he group has been discharging its responsibilities to
the satisfaction of all its shareholders and fello' Indians, summed by its guiding
philosophy of E!rowth with a 1uman FaceE
A
&ISSIO$
Cur solitary Mission is to achieve !/cellence in every sector that 'operatein , be it
!ngineering D 7onstruction, 7ement, 9eal !state or 7onsultancy% 1o augment our core
competencies and adopt the most comprehensive modern technology to overtake the
obstacles in our path of achievement% 1o obtain sustainable development and
simultaneously enhancing the shareholders value and fulfilling our obligations to'ards
building a better IndiaE%
:ISIC0
As a group, 'e are committed to strategic business development in infrastructure, as the
key to nation building in the )1st century% 3e aim to achieve perfection in everything 'e
undertake 'ith a commitment to e/cel% It is the determination to transform every
challenge into opportunityF to seize every opportunity to ensure gro'th and to gro' 'ith
a human face%#
=
: ARIO#S (#SI$ESS I$2O%2E" I$ JA=PEE !RO#P
3I2I% E$!I$EERI$!
.igh standard of $uality and strict adherence to programmed and budget have earned
a place of pride for the 7ompany;s !ngineering 2ivision in the 7onstruction of river
valley and .ydropo'er pro&ect in India and turnkey pro&ect in the Middle !ast% 1he
international market for high $uality, lo' cost engineering and design, the ability of
highly educated and competent talent 'ith in the country and gro'ing needs of an
house design and consultancy organization promoted the company to set up idea
?international design engineering association limitedB to compete 'ith the latest
Intergraph 7A2 system and SG0 'orkstation and peripheral like 72 rom, color
thermal plotter etc 'ith a team of highly trained engineers and architects, I2!A, 'ill
be able to serve the gro'ing needs of the company in the hydropo'er sector also
contributes to'ard e/port of such services to overseas the design e/perience gained in
implementing the company in house pro&ect 'ill provide an unparalleled base for
e/pansion
<
&aAor 3onstruction ProAect completed in India*
1% Gkoi 2am "ro&ect, ?Gu&ratB, May1<A4
)% Salal .ydroelectric "ro&ect, ?8DHB, May 1<AA
+% Garh'al,rishkesh,chilla hydel "ro&ect, ?G"B May 1<A<
4% >okya !arthen 2am ?kudremukh iron ore "ro&ect, Harnataka, May 1<A<
-% Bhramputra road bridge ?AssamB May 1<=-
6% 1ehri dam pro&ect ?G"B, May 1<=6
A% Sardar sarovar ?narmadaB pro&ect, ?gu&ratB aug 1<=6
=% Har&an reservoir pro&ect ?gu&ratB, @eb% 1<=A
<% Indira sraovar hydro electric pro&ect ?M" Cctober 1<=A
1*% 7ivil 'orks at vishakapatnam steel plant ?Andra paradeshB 8une 1<=<
11% 7onstruction of four rock fill dam of sardar sarovar pro&ect ?8une 1<=<B
1)% 7hamera hydroelectric pro&ect concrete gravity dam ?."B September 1<<+
1+% 9ock filled coffee dam of tehri hydroelectric pro&ect ?G"B 8anuary 1<<4
3E&E$
1he company is one of the leading producer of cement in India, cement division plant are
located at 8aypee 0agar, 9e'a in M%" 'ith an annual capacity of A%* M1"A these are the
among most Modern "lants in the country 'ith computerized process control system%
1OSPIA%I=
1he .otel 2ivision of 7ompany has constructed a Modern .ill 9esort at Mussorie in the
foot hills of .imalayas and +)* room .otel cum convection center near the 1a& Mahal in
Agra and it is a 8oint :enture 'ith 8aypee .otel limited an associate company, o'ing and
operating t'o hotel,:asant 7ontinental and Siddhartha of international standard in 0e'
2elhi and also a five star Golf resort at Greater 0oida, 'ith a total capacity of 6A- rooms%
1*
I$E!RAE" OF$S1IP
1he Group is a pioneer in the development of IndiaIs first golf centric 9eal !state% 8aypee
Greens , a saga, a story , a 'orld class integrated community 'ith a sanctuary of homes
'ith limitless hours of enchantment% A masterful creation spread over A million s$%ft% in
over 4-* acres of land at Greater 0oida, it has become the most e/clusive address for
high,end segment of homeo'ners%
In addition to the construction and operation of 16- km, 0oida to Agra e/press'ay, a
9ibbon 2evelopment of )-** .ectares of land at five or more locations along the
e/press'ay for commercial, industrial, institutional and residential and amusement
purposes, 'ill also be undertaken as an integral part of the pro&ect% 1he company plans to
develop such installations to international standards 'ith state of the art technology%
1="ROPOFER
8aypee Group, an integrated po'er player in the country after having established a strong
presence in the .ydro,"o'er Sector has initiated its entry into 1hermal "o'er
Generation, "o'er 1ransmission and also forayed into 3ind "o'er%
1he group 'ith its operational pro&ects of +** M3 Baspa,II ?.imachal "radeshB and 4**
M3 :ishnuprayag ?GttarakhandB is India;s largest "rivate sector .ydro,po'er producer
1he Group is also in the process of implementing ) / 66* M3 pit head based 0igrie
1hermal "o'er "lant in 2istrict Sidhi of M%"% and is setting up through M5s Suzlon, -*
M3 of 3ind "o'er in t'o phases of )- M3 each in Maharashtra%1he Group is setting
up 1ransmission System associated 'ith 1*** M3 Harcham 3angtoo .ydro !lectric
"ro&ect% 1he 1ransmission "ro&ect 'ill consist of a )+* km long transmission line
bet'een 3angtoo in .imachal "radesh and Abdullapur in .aryana%
11
S#(SI"IARIES OF 1E OR!A$I6AIO$9/
1he 8aypee Group operates through its various subsidiaries in different
Business segments , .otels, 7ement and "o'er Sector%
8aypee .otels limited
8aiprakash .ydro,"o'er >imited ?8.">B
Jamuna e/press'ay pro&ect ?J!"B
8aypee aagra vikasa >td%
8aiprakash "o'er :entures >imited ?8":>B
8aypee Harcham .ydro 7orporation >imited ?8H.7>B
8aypee 7ement >imited ?87>B
8aypee "o'er Grid >td% ?8">B
Gu&arat An&an 7ement >imited ?GA7>B
8aypee Infratech >imited ?8I>B
.&malayan e/press'ay
Ganaga e/press'ay ?>tdB
3ompanyGOr;aniHational Profile of Jaipra:ash Associate %imited 7JA%8
1ransforming challenges into opportunities has been the hallmark of the 8aypee Group,
ever since its inception four decades ago% 1he group is a diversified infrastructure
conglomerate and has a formidable presence in !ngineering D 7onstruction along 'ith
interests in the po'er, cement and hospitality% 1he infrastructure conglomerate has also
e/panded into real estate D e/press'ays%
E$!I$EERI$! 4 3O$SR#3IO$
1he !ngineering and 7onstruction 'ing of the group is an ackno'ledged leader in the
construction of multi,purpose river valley and hydropo'er pro&ects% It has had the uni$ue
distinction of e/ecuting simultaneously 1+ hydropo'er pro&ects spread over 6 states and
the neighbouring country Bhutan for generating 1*,)<* M3 of po'er%
1he group has been assigned 791# grade by I79A >td indicating very Strong 7ontract
!/ecution 7apacity 'ith best prospects of timely completion of pro&ects 'ithout cost
1)
overruns etc% for pro&ects 'ith average value of 9s%)-** crores%# It is the only group in
India, 'hich pre,$ualifies on its o'n for the bidding of various pro&ects that are a'arded
in the country%
A leader in engineering D construction of hydropo'er pro&ects in India, the 7ompany has
the largest market share in the Indian hydropo'er, !D7 and !"7 sector having
participated in -4K of hydropo'er pro&ects developed in 1*th -,Jear "lan in different
capacities%
1he company also has the distinction of e/ecuting three out of five hydropo'er pro&ects
contracted on an !"7 basis in the country till March )**A% 1'o of these, +** M3
7hamera , II and -)* M3 Cmkaresh'ar, have been completed ahead of schedule%
1he <** M3 Baglihar ?Stage,I and IIB hydroelectric pro&ect in 8ammu D Hashmir, in the
challenging environment of the State 'ith )) million cubic meters of concrete, has been
the largest !"7 pro&ect e/ecuted in the country in hydropo'er sector, so far%
1he key non,!"7 pro&ects completed5under e/ecutions across India are ,
14-* M3 Sardar Sarover "ro&ect, the largest 'ater resource pro&ect in India,
1*** M3 1ehri 2am, AsiaIs highest rock fill dam%
1*** M3 Indira Sagar "o'er .ouse, second largest surface po'erhouse in the country%
1-** M3 0aptha 8hakri "o'er .ouse, the largest underground surface po'er house in
the country%
1he in house 2esign and 7onsultancy 7ompany, 8aypee :entures "vt% >td% ?8:">B, gives
8A> a competitive edge over its rivals% 1he design and engineering arm has been a'arded
711# grade by I79A 'ith 7I27 ?1he 7onstruction Industry 2evelopment 7ouncilB%
1his is the highest rating assigned to consultants in the field of engineering%
1+
OR!A$I6AIO$ SR#3#RE
"resident
L
Sr% 8oint "resident
L
8oint "resident
L
Sr%vice president
L
:ice president
L
Sr%G%M
L
G%M
L
Addl%G%M
14
L
2%G%M
L
Addl%G%M%
L
2%G%M
L
Asst%G%M
L
Assit%G%M
L
9esident Mgr%
L
Sr% mgr%
L
Cfficer
L
Asst% officer
L
1-
Manager
L
Asst% manager
L
Sr% Asstt%
L
Assistant
L
7lerk
L
Cffice boy
16
(A3)!RO#$"
3ith a single minded focus in mind, to achieve pioneering myriads of feat in civil
engineering Shri% 8aiprakash Gaur, the founding father of 8aiprakash Associates >imited
had a stint 'ith Govt% of G%"% and 'ith steadfast determination to contribute in nation
building, branched off on his o'n, to start as a civil contractor in 1<-=%
1istorical &ilestones
Jear 1<-= 7ompleted first 'ork as contractor in Hota ?IndiaB%
Jear 1<A< 8aiprakash Associates "rivate >td% ? 8A">B
Jear 1<=+ !stablishment of 8apyee 9e'a 7ement "lant ?897>B 'ith an initial capacity
of 1 million tones%
Jear 1<=* .otels Siddharth and :asant 7ontinental set up%
Jear 1<=6 @ormation of 8aiprakash Industries >imited ? 8I>B by amalgamating 8A">
into 897>%
Jear 1<<) @ormation of 8aiprakash .ydro "o'er >td%?8.">B and 8aiprakash "o'er
:enture >td% ?8":>B
Jear 1<<6 !stablishment of 8aypee Bela 7ement "lant ?8B7"B 'ith an initial capacity
of 1%< million tones%
Jear )*** @ormation of 8aypee 7ement >td% ?87>B by merging 897> and 8B7"%
Jear )**+ @ormation of 8aiprakash Associates >td% ? 8A>B formed by merging 8I> 'ith
87>%
Jear )**- Shares of 8."> listed on BS!50S!% @irst .ydropo'er company to be
publicly held and listed in the country%
Jear )**6 Merger of 8aypee Greens 'ith 8aiprakash Associates >td% ? 8A>B

1A
&ISSIO$
Cur solitary Mission is to achieve !/cellence in every sector that 'e operate in , be it
!ngineering D 7onstruction, 7ement, 9eal !state or 7onsultancy% 1o augment our core
competencies and adopt the most comprehensive modern technology to overtake the
obstacles in our path of achievement% 1o obtain sustainable development and
simultaneously enhancing the shareholders value and fulfilling our obligations to'ards
building a better IndiaE%
2ISIO$
As a group, 'e are committed to strategic business development in infrastructure, as the
key to nation building in the )1st century% 3e aim to achieve perfection in everything 'e
undertake 'ith a commitment to e/cel% It is the determination to transform every
challenge into opportunityF to seize every opportunity to ensure gro'th and to gro' 'ith
a human face%#
PROJE3 "ES3RIPIO$
$ature of wor:9
In JA%, I 'as 'orking as an summer trainee ?"DAB and hence I had an opportunity to
learn about various functions of .9 department primarily I 'as 'orking on "ro&ect on
performance appraisal system of 8A>, 'here the scope of my pro&ect 'as firstly to
understand the appraisal methodology5"rocess follo'ed by 8A> and then finally to
analyze that system from the perspectives of an Summer trainee and suggest some
recommendation, if any% 1his procedure of 'ork re$uired me to prepare $uestionnaire
and have an interaction session 'ith employees and .C2;s to gather as much
information as poss%
1=
O'Aectives
1o Study the e/isting "erformance appraisal system of the organization%
1o Analyze 'hether the "erformance Appraisal is fair and accurately assess
individual $uality and capability%
1o understand the opinion of employees to'ards performance appraisal at &aypee
group%
1o identify the effect of performance appraisal on individual and organizational
development%
1o understand the e/isting relationship bet'een management and employees%
1o identify 'ays to improve the e/isting performance appraisal system
1<
0ature of the pro&ectM ,
Fhat is the performance appraisal
"erformance appraisal means a systematic evaluation of the personality and performance
of each employee by his supervisor or some other person trained in the techni$ue of merit
rating%
1he 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 'hat an employee does% "erformance appraisal is also closely linked to other .9
processes like helps to identify the training and development needs, promotions,
demotions, changes in the compensation etc% A feedback communicated in a positive
manner goes a long 'ay to motivate the employees and helps to identify individual career
developmental plans% Based on the evaluation, employees can develop their career goals,
achieve ne' levels of competencies and chart their career progression% "erformance
appraisal encourages employees to reinforce their strengths and overcome their
'eaknesses%
1herefore, performance appraisal may be defined as any procedure that involvesM
1% Setting 'ork standards%
)% Assessing the employee;s actual performance relative to their standards%
+% "roviding feedback to the employees 'ith the aim of monitoring that person to
eliminate his deficiencies and5or continue to perform better%
Generally, appraising the performance of an individual has been kno'n as merit rating%
But in recent years, different terminologies have been used to denote this process, such as
performance appraisal, performance revie', performance evaluation, employee appraisal,
progress report, personnel revie' etc%
"erformance appraisal or merit rating is one of the oldest and most universal practices of
)*
management% It is an inevitable process, 'herever men are employed on any kind of
productive 'ork in any organization% It is obvious that some form of systematic
performance appraisal provides management 'ith data for 'age and salary
administration, transfer, training, even termination of employment%
"erformance appraisal is essential to understand and improve the employee;s
performance through human resource development% In fact, performance appraisal is the
basis for human resource development% 9ecent developments in human resources
management indicate that appraisal is the basis for employee development% "erformance
appraisal indicates the level of desired performance, level of actual performance and the
gap bet'een these t'o% 1his gap should be bridged through human resources techni$ues
like training, development etc%
1here is hardly any organization 'hich does not o'n the importance of its human asset;
yet, ho' many of them kno' it and keep an account of itN 1he human asset is sharp and
fle/ible, 'ith undefined potential% "erformance is the key 'ord in the life of an
enterpriseF it is the staffing that performs the management tasksF not the machines or the
materials% It is, therefore, amazing, yet understandable, ho' the appraisal of the employee
effectiveness is mostly left to chance% It is amazing because of the importance of the
taskO the stake that it holds for the enterprise% And it is yet understandable, because of the
difficulty of the appraisal%
It 'ill be my !ndeavour, in this report to probe the content of the appraisal process,
e/amine the problems, survey the appraisal methods in current practice and come to a
conclusion%
)1
31APER/+/
RESEAR31 O(JE3I2ES 4 &E1O"O%O!=
1o analyze the "erformance Appraisal process in 8AJ"!!
1o obtain the employees feedback and satisfaction level in regard to "erformance
Appraisal process in 8AJ"!!
1o analyze the re$uirement in the appraisal system of the 8aypee group
1o Study the e/isting "erformance appraisal system of the organization%
1o Analyze 'hether the "erformance Appraisal is fair and accurately assess
individual $uality and capability%
1o Measure the effectiveness of "erformance Appraisal System%
Scope of his For:
1he study 'ith regard to the above ob&ective 'ill help 8aypee Group to ascertain 'hether
the e/isting "erformance Appraisal System is ade$uate or any change is re$uired in this
system%
1he study consists of employees vie' on performance Appraisal in 8aypee Group
and their valuable suggestions on the improvement of e/isting system%
))
RESEAR31 &E1O"O%O!=
A 9esearch Methodology defines the purpose of the research, ho' it proceeds, ho' to
measure progress and 'hat constitute success 'ith respect to the ob&ectives determined
for carrying out the research study% 1he appropriate research design formulated is detailed
belo'%
EDploratory research9 this kind of research has the primary ob&ective of development of
insights into the problem% It studies the main area 'here the problem lies and also tries to
evaluate some appropriate courses of action%
RESEAR31 "ESI!$
1he research methodology for the present study has been adopted to reflect these realties
and help reach the logical conclusion in an ob&ective and scientific manner% 1he present
study contemplated an e/ploratory research %1he research design is the basic frame'ork,
'hich provides guidelines for the rest of the research process% 1he present research can
be said to be e/ploratory% 1he research design determines the direction of the study
throughout and the procedures to be follo'ed% It determines the data collection method,
sampling method, the field'ork and so on%
)+
$ature of "ata
Primary "ata9 "rimary data is basically fresh data collected directly from
the target respondentsF it could be collected through
Puestionnaire Surveys, @ocus Group 2iscussions !tc%
Secondary "ata9 Secondary data that is already available and published %it
could be internal and e/ternal source of data% Internal
sourceM 'hich originates from the specific field or area
'here research is carried out e%g% publish broachers, official
reports etc%
EDternal Source9 1his originates outside the field of study like books%
"eriodicals, &ournals, ne'spapers and the Internet%
"ata 3ollection
Primary "ata9 "rimary data 'as selected from the sample by a self,administrated
$uestionnaire in presence of the intervie'er%
Sample SiHe9
1he survey is conducted among -* respondents
Sample Area9 0CI2A
Sample unit9 !mployees of 8AJ"!! these people 'ere re$uested to fill in the
$uestionnaires during the lunch intervals at their office premises
Secondary "ata9 Secondary data has been collected through Articles, 9eports,
8ournals, Magazines, 0e'spapers and Internet
Samplin; echniIue
9andom sampling techni$ue has been employed to e/tract the fruitful results% 1his
includes the overall design, the sampling procedure, the data collection methods, the field
methods and the analysis procedures
)4
Samplin; procedure actually employed9
1he process employed to select the sample 'as simple random sampling% Simple random
sampling refers to that sampling techni$ue in 'hich each and every unit of the population
has an e$ual and same opportunity of being on the sample% In simple random sampling,
'hich item gets selected is &ust a matter of chance%
Analytical tools9
Simple statistical tools have been used in the present study to analyze and interpret the
data collected from the field% 1he study has used percentiles method and the data are
presented in the form of tables and diagrams%
)-
31APER/.
%IERA#RE RE2IEF
"erformance appraisal is the systematic, periodic and impartial rating on an employee;s
e/cellence in matters pertaining to his present &ob and to his potentialities for a better &ob%
3hen properly conducted, performance appraisal should not only let the employee kno'
ho' 'ell he is performing but also influence the employee;s future performance%
"erformance appraisal is a method of evaluating the behaviour of employees in
the 'orkspot, normally including both the $uantitative and $ualitative aspects of &ob
performance% It indicates ho' 'ell an individual is fulfilling the &ob demands% Cften the
term is confused 'ith effort, but performance is al'ays measured in terms of results and
not efforts%
"erformance appraisal is not &ob evaluation% It refers to ho' 'ell someone is
doing the assigned &ob% 8ob evaluation determines ho' much a &ob is 'orth to the
organization and therefore, 'hat range of pay should be assigned to the &ob%
1hus, performance appraisal is a process of estimating or &udging the value, e/cellence or
$ualities of employees in an organization%

I&PORA$3E
"erformance appraisal has become a very significant activity in most of the enterprises
because it provides data about past, present and e/pected performance of the employees,
'hich is helpful in taking decisions on selection, training and development, increases in
pay, transfers and the like% 1hese days a large amount of money is being spent on
appraisals by most of the organizations% 1he follo'ing benefits of performance appraisal
&ustify the designing of an effective program of performance appraisalM
)6
Performance Improvement , "erformance feedback provides a scientific basis for
&udging the merit or 'orth of employees 'ho 'ill try to improve their performance if
it is not up to the satisfaction of the employers%
Placement "ecisions , It is a sound basis for promotions, demotions, transfers or
even termination of employees% Cften promotions are a re'ard for past performances%
rainin; and "evelopment $eeds , It helps in distinguishing bet'een efficient and
inefficient 'orkers% "oor performance may indicate the need for retraining% >ike'ise,
good performance may indicate untapped potential that should be developed%
3areer Plannin; and "evelopment , "erformance feedback guides career decisions
about specific career paths one should investigate% It also helps the management to
assign 'ork to individuals for 'hich they are best suited%
EDternal 3hallen;esM Sometimes, performance is influenced by factors outside the
'ork environment, such as family, financial, health or other personal matters% If
uncovered through appraisals, the human resources department may be able to
provide assistance%
If the appraisal is done scientifically and systematically5 it will prevent ;rievances
and develop a sense of confidence amon; the wor:ers* hus5 appraisal helps in
creatin; a con;enial environment of employer/employee relations*
O(JE3I2ES OF APPRAISA%
1he overall ob&ective of performance appraisal is to improve organizational effectiveness
by providing information about efficiencies and deficiencies of its human resources% 1he
first function of this control mechanism is administrative i%e%, it helps in administrating a
re'ard and penalty system% It often provides the rational foundation for the estimation of
the contributions of employees, and helps to determine the re'ards and privileges
rationally%
)A
1he ne/t important use of such appraisal is that it enables the management to inform the
employees 'here they stand% In other 'ords, it serves as a feedback to the employee% By
letting the employee kno' ho' 'ell he is doing or 'here he stands, it tells them 'hat
they can do to improve their performance%
A third purpose of such appraisal is to locate or identify the potential for gro'th of
individual employees% By identifying the strengths and 'eaknesses of an employee, it
serves as a guide for formulating a suitable training and development program to improve
their $uality of 'ork% Also, it helps to determine 'hether an employee can contribute
more in a higher or different &ob% It helps in their suitable promotion or placement%
>astly, an analysis of the periodical assessments of all employees provides a fairly
dependable connective data on the efficiency of the organizations, state of employee
morale etc% to the top management 'here the appraisals are so structured as to elicit such
information%
In a concise manner, 'e can say that performance appraisals aim at attaining the
follo'ing different purposesM
1o create and maintain a satisfactory level of performance%
1o contribute to the employee gro'th and development through training, self and
management development programs%
)=
1o help the superiors to have a proper understanding about their subordinates%
1o guide the &ob changes 'ith the help of continuous ranking%
1o facilitate fair and e$uitable compensation based on performance%
1o facilitate testing and validating selection tests, intervie' techni$ues through
comparing their scores 'ith performance appraisal ranks%
1o provide information for making decisions regarding lay off, retrenchment etc%
1o ensure organizational effectiveness through correcting the employee for
standard and improved performance and suggesting the change in employee
behavior%
)<
1E APPRAISA% PRO3ESS
Approaches to Performance Appraisal9/
Methods51echni$ues of Appraisal
1% 1raditional Methods
)% Modern Methods
+*
APPROA31ES O PERFOR&A$3E APPRAISA%
Generally speaking, three approaches are used in conducting performance appraisal%
1hese areM
-* he ;oal or o'Aective approach/ 1heoretically, this approach is the simplest and the
most satisfying% 3hen there is a goal for the manager, an ob&ective, task, norm or target,
in measurable or verifiable form, the appraisal process is simplified to a $uantitative
comparison of the achievement of the goal or ob&ective% Basically, under this system,
specific ob&ectives are established for each position and they are appraised over a specific
period of time%
+* he trait or traditional approach/ 1he trait or traditional approach tends to appraise
people on personality rather than on performance% 1he logic behind this approach is the
assumption that there are certain $ualities, traits etc% present in everyone, some of them
are natural, others ac$uired and cultivated over a period of time% 1he possession of these
traits in varying measures supplies the basis for appraisal% .ence, the scope 'as limited
only to the e/tent of traits and personality in this approach%
.* he functional approach/ 1his approach to appraisal is based on the thesis that an
employer must succeed as an officer or manager% .e must be &udged by ho' much and
ho' 'ell he performs the functions of his post, planning, organizing, staffing, directing
and controlling% A 'eightage is decided for the several functions and the employer;s
score is recorded against each% 1he total score gives an inde/ of his rating%
Apart from the above,mentioned approaches, there are t'o approaches that are
collectively kno'n as composite approaches%
1hese areM
?aB 1he trait,cum,goal approach
?bB 1he goal,cum,functional approach
+1
1hese approaches have the combined features of any t'o approaches% 1he principle is
that the goal has to be reached but through the possession and practice of certain essential
traits5$ualities and functions%
&E1O"SG E31$IJ#ES OF APPRAISA%
Several methods and techni$ues are available for measurement of the performance of an
employee% 1he methods D scales vary for many reasonsM
1% 1hey differ in the sources of traits or $ualities to be appraised%
)% 1hey differ because of the different kinds of 'orkers 'ho are being rated%
+% It may be because of the degree of precision attempted in an evaluation may be
different%
4% 1hey may differ because of the methods used to obtain 'eightings for various
traits%
1here is much argument on the best method to evaluate performance% 2ifferent authors
have suggested different approaches% @or e/ample, 9ock D >e'is classificationF
classification by 9obbinsF Strauss D Sayles classification system etc%
1he most 'idely used categorization is given by Strauss D Sayles% 1hey have classified
performance appraisal methods into traditional and ne'er or modern methods%
1he traditional methods lay emphasis on the rating of the individual;s personality traits
such as initiative, dependability, drive, responsibility, creativity, integrity, leadership
potential, intelligence, &udgement, organizing ability etc%
Cn the other hand, ne'er methods place more emphasis on the evaluation of 'ork
results, &ob achievements etc%, than on personal traits%
+)
RA"IIO$A% &E1O"S
-* Strai;ht Ran:in; &ethod, In this system, the rating of a man in a 'ork group is done
against that of another simplest method of separating the most efficient from the least
efficient% It is relatively easy to develop and use%
But the greatest limitation of this method is that, in practice it is very difficult to compare
a single individual 'ith another% Secondly, the task of ranking individuals is difficult
'hen a large number of persons are rated%
+* Paired 3omparison &ethod/ By this techni$ue, each person is compared 'ith all
other employees to be evaluated% 1he evaluator then checks the person he or she felt had
been the better of the t'o on the criterion of over all ability to do the present &ob% 1he
number of times a person has been preferred is tallied and the tally developed is an inde/
of the performances% 1his method is not suitable for a large group%
.* &an/to/man 3omparison &ethod/ By this method certain factors are selected for the
purpose of analysis ?e%g% leadership, dependability, initiativeB and the rater designs a scale
for each factor% 7ertain scores for each factor are a'arded to the appraisee% 1his method
is used in &ob evaluation and is also kno'n as the factor comparison method% It is not
much use, because the designing of scales is a complicated task%
B* !radin; &ethod/ Gnder this system, the rater considers certain features and marks
them accordingly to a scale% 1he scale may beM A,outstanding, B,very good, 7,good or
average, 2,fair, !,poor and @,very poor or hopeless% 1he actual performance of an
employee is then compared 'ith these grade definitions and he is allotted the grade 'hich
best describes his performance%
++
0* !raphicG %inear Ratin; Scale/ It is the oldest and most 'idely used performance
appraisal method% 1he rating can be a matri/ of bo/es or a bar graph 'here the evaluator
checks off a location relative to the rating%
1his method is easy to understand and use% It permits a statistical tabulation of scores%
Cne serious disadvantage is that, often the rating clusters on the high side 'hen this
method is used%
?* Forced 3hoice "escription &ethod/ It attempts to correct a rater;s tendency to give
consistently high or consistently lo' ratings to all employees% Gnder this method, the
rating elements are several sets of phrases relating to &ob proficiency or personal
$ualifications% 1he rater is asked to indicate 'hich of the phrases is most and least
descriptive of the employee%
>* Forced "istri'ution &ethod/ 1his system is used to eliminate or minimize rater;s
bias% A -,point performance scale is used to rate the employees, 'ithout any descriptive
statement% !mployees are placed bet'een the t'o e/tremes of Qgood; and Qbad; &ob
performances%
1his method tends to eliminate or reduce bias% 1his method is highly simple and very
easy to apply in organizations%
C* 3hec:list &ethod/ Gnder this method, the rater does not evaluate employee
performance, he supplies reports about it and the personnel department does the final
rating% A series of $uestions are presented concerning an employee;s behavior% 1he rater
then checks to indicate, if the ans'er to a $uestion about an employee is positive or
negative%
1his method suffers from bias on the part of the rater because he can distinguish
positive D negative $uestions% 1his process can be very e/pensive D time consuming%
+4
@* Free Essay &ethod/ Gnder this method, the supervisor makes appraisal of an
employee in his o'n 'ords and puts do'n his impressions about the employee% .e takes
note of a number of factors like relations 'ith colleagues, general organizing, planning
ability, &ob kno'ledge, potential, attitude, development needs for future etc%
1here are no common criteria for evaluation% 1his system re$uires considerable time and
thought from the appraiser%
-,* 3ritical Incident echniIue/ 1his system attempts to measure a 'orker;s
performance in terms of certain Qevents; or Qepisodes; that occur in the performance of the
&ob% 1hese events are kno'n as critical incidents% 1he collected incidents are then ranked
in order of fre$uency and importance% 1his method has a limitation that negative
incidents are generally more noticeable than positive incidents%
--* !roup Appraisal &ethod/ Gnder this method, an appraisal group rates employees,
consisting of supervisors 'ho have some kno'ledge of their performance% 1he group
then discusses the standards of performance for that &ob, the actual performance of the
&obholder, and the causes of their particular level of performance and offers suggestions
for future improvement, if any% 1his method is very time consuming%
-+* Field Review &ethod/ Gnder this method, a trainer employee from the personnel
department intervie's the supervisors to evaluate his subordinates% 1he supervisor is
re$uired to give his opinion about the progress of his subordinates, the level of the
performance of each subordinate, his 'eaknesses, good points, ability etc%
1he success of this system depends upon the competence of the intervie'er% Cne defect is
that it keeps t'o management representatives busy 'ith the appraisal%
+-
&O"ER$ &E1O"S
-* Appraisal 'y ResultsG &ana;ement (y O'Aectives 7&(O8/ Management by
ob&ectives can be described as a process 'hereby the superior and subordinate managers
of an organization &ointly identify its common goals, define each individual;s ma&or areas
of responsibility and contributions of each of its members%#
It strongly reinforces the importance of allo'ing the subordinate to participate actively in
the decisions that affect him directly% Subordinates become involved in planning their
o'n careers% MBC is result,oriented% MBC helps in increasing employee motivation% But
MBC program takes a great deal of time, energy and form% 1here is sometimes a tug of
'ar# in 'hich the subordinate tries to set the lo'est target possible and the supervisor the
highest%
+* Assessment 3enter &ethod/ Gnder this method, many evaluators &oin together to
&udge employee performance in several situations 'ith the use of a variety of criteria%
Assessments are made to determine employee potential for promotion% 1he assessment
centers generally measure interpersonal skills and other aspects such asM organizing and
planning, getting along 'ith others, $uality of thinking, resistance to stress, motivation to
'ork etc%
.* .?, "e;ree Performance Appraisal/ Some organizations have e/panded the idea of
up'ard feedback into 'hat they call +6* degree feedback% "erformance information is
collected all round# an employee% @rom his supervisors, subordinates peers and internal
and e/ternal customers% 1he feedback is generally used for training and development
rather than for pay increase%
B* 1uman Asset Accountin; &ethod/ 1he human asset accounting method refers to
activity devoted to attaching money estima e/ternal customer good'ill% If able, 'ell,
trained personnel leave a firm, the human organization is 'orthlessF if they &oin it, its
human assets are increase% 1his method is not yet very popular%
K
+6
0* (ehaviorally Anchored Ratin; Scales 7(ARS8/ 1his is a ne' appraisal techni$ue% It
provides better, more e$uitable appraisals as compared to other techni$ues% Since BA9S
is done by persons 'ho are e/pert in the techni$ue, the results are sufficiently accurate%
1he techni$ue is not biased by the e/perience and evaluation of the rater%
+A
3O&PO$E$S OF APPRAISA%
A% 3ho of the Appraisal
B% 3hat of Appraisal
7% 3hy of Appraisal
2% 3hen of Appraisal
!% 3here of Appraisal
@% .o' of Appraisal
+=
F1O OF APPRAISA%
1he Q'ho; of the appraisal is concerned 'ith 'ho should be rated and 'ho should do the
ratingN# 1he ans'er to the first $uery is that all employees of an organization should be
appraised, for one reason or the other%
9egarding the second issue, it may be said that the appraisal can be accomplished by one
or more individuals 'ho can be the immediate supervisor, other managers ac$uainted
'ith the appraisee;s 'ork, a higher level manager, a personnel manager, the appraisee;s
peers, the appraisee himself or the appraisee;s subordinates%
Gsually the immediate supervisor must be entrusted 'ith the task of rating the appraisee
because he is most familiar 'ith his 'ork and he is also responsible for providing a
feedback of performance appraisal to the subordinate% 1he staff specialists, i%e%, the
personnel officers, may also do the appraisal% 1hey may sometimes, &ust advise the
supervisors in the process%
.is peers may also do the appraisal of an individual% Such appraisal proves effective in
predicting future management success% Sometimes, self,evaluation is also employed for
evaluating performance% It emphasizes human relations 'ith the supervisor%
+<
>astly, in many companies, subordinates and superiors &ointly establish goals and
periodically evaluate the subordinate;s performance 'ith respect to these goals%
F1A OF APPRAISA%
1he Q'hat; of the performance appraisal consists of the $ualities and attributes that should
be scrutinized, in order to &udge the ability and the performance of the appraisee% !very
organization has to decide the contents to be appraised before the program is approved%
Generally, the content to be appraised is determined on the basis of &ob analysis% 1he
content to be appraised may vary 'ith the purpose of appraisal and type and level of
employees%
1he various criteria for assessing a performance areM
9egularity of attendance
Self,e/pressionM 'ritten and oral
Ability to 'ork 'ith others
>eadership styles and abilities
Initiative
1echnical skill
1echnical ability or kno'ledge
Ability to grasp ne' things
Ability to reason
Criginality and resourcefulness
7reative skills
Areas of interest
Area of suitability
8udgment skills
4*
Integrity
7apability for assuming responsibility
>evel of acceptance by subordinates
.onesty and sincerity
1horoughness in &ob and organizational kno'ledge
Hno'ledge of systems and procedures
Puality of suggestions offered for improvement
1he above criteria relate to past performance and behaviour of an employee% 1here is also
the need for assessing the potential of an employee for future performance, particularly
'hen the employee is e/pected to assume greater responsibilities%
41
F1= OF APPRAISA%
In todayLs competitive Forld5 the word is PERFOR& or PERIS1*
1he Q'hy; of an appraisal is concerned 'ith the purpose that is served by the process%
"erformance appraisals are essential for the effective management and evaluation of staff%
Appraisals help develop individuals, improve organizational performance, and help in
business planning% Annual performance appraisals enable management and monitoring of
standards, agreeing e/pectations and ob&ectives, and delegation of responsibilities and
tasks% 1hey also help to establish individual training needs and organizational training
needs and planning to fulfill those needs%
"erformance appraisals are important for staff motivation, attitude and behaviour
development, communicating organizational aims, and encouraging positive relationships
bet'een management and staff% In short, performance and &ob appraisals are vital for
managing the performance of people and organizations%
4)
"erformance appraisals, thus, help in achieving the follo'ing ob&ectivesM
"erformance measurement , short, medium and long term%
7larifying and defining priorities and ob&ectives%
Motivation through agreeing to helpful aims and targets%
Motivation through achievement and feedback%
Assessing the training needs and learning desires O individual and organizational%
Identification of personal strengths and direction, including unused hidden strengths%
7areer and succession planning , personal and organizational%
1eam roles clarification and team building%
Appraisee and manager mutual a'areness, understanding and relationship%
9esolving confusions and misunderstandings%
9einforcing organizational philosophies, values, aims, strategies, priorities, etc%
2elegation, additional responsibilities, employee gro'th and development%
7ounseling and feedback%
Manager development , all good managers should be able to conduct appraisals 'ell,
itIs a fundamental process%
3ell,prepared and 'ell,conducted performance appraisals provide uni$ue opportunities
to help appraisee and managers improve and develop, and thereby also the organizations
for 'hom they 'ork%
F1E$ OF APPRAISA%
1he Q'hen; ans'ers the $uery about the fre$uency of appraisal% 1he time period bet'een
t'o appraisals varies considerably 'ith different organizations% Appraisals are conducted
by organizations every three months, every si/ months or sometimes even annually%
Suggested time periods include three and si/ month appraisals, as during this time the
employee is learning the e/pectations of the &ob and the company%
4+
"erformance appraisals are effective and useful during the beginning period of
employment, at set intervals or 'hen an employee changes &ob duties% 0e' employees
are rated more fre$uently than the older ones%
Appraisals should immediately be follo'ed by discussions bet'een the appraiser and the
employee 'ho has been appraised% !ffective management re$uires timely feedback to an
employee , not < months after an event occurs%
A performance appraisal should be a recap of the time period for 'hich the revie' is
based% Good 'ork should be used as an opportunity to provide positive reinforcement and
poor 'ork should be used as a basis for training%
1he time of rating should not coincide 'ith the time of salary revie's, for if the t'o
occur together constructive evaluation and considerations of self,development 'ill
probably take second place to the pressures of pay%
F1ERE OF ARPPRAISA%
1he Q'here; indicates the location 'here an employee may be evaluated% It is usually
done at the place of 'ork or office of the supervisor% Informal appraisals may take place
any'here and every'here, both on,the,&ob in 'ork situations and off,the,&ob%
A suitable venue should planned and available , private and free from interruptions% .otel
lobbies, public lounges, canteens etc should be avoided, as privacy is absolutely essential%
Also planes, trains and automobiles are entirely unsuitable venues for performance
appraisals%
9oom layout and seating are important elements to prepare also% >ayout has a huge
influence on the atmosphere and mood, irrespective of content% 1he atmosphere and
mood must be rela/ed and informal% All barriers should be removed%

.C3 C@ A""9AISA>
44
Gnder Qho';, the company must decide 'hat different methods are available and 'hich
of these may be used for performance appraisal% Cn the basis of the comparative
advantages and disadvantages it is decided 'hich method 'ould suit the purpose best%
Cnce this has been done, the process of appraisal begins% @irst of all, the appraiser should
collect all the relevant data, records, reports etc of previous performance of the appraisee
and his current &ob profile% 1he appraisee should be informed of the appraisal 'ell in
advance so that he has enough time to collect the necessary documents regarding his
previous performances etc%
At the time of the appraisal, the appraiser should be friendly and 'arm% .e should try to
put the appraisee at ease, as he may 'ell be terrified% 1he appraiser should try to resist
&udging the appraisee according to his o'n style and approach and instead provide a good
neutral basis for the discussion, free of bias and personal vie's%
An overall plan should be agreed 'ith the appraisee, 'hich should take account of the &ob
responsibilities, the appraiseeIs career aspirations, the organizationIs priorities etc% 1he
plan can contain an overvie' of the organization;s short, medium and long,term aspects,
but importantly it must be agreed and realistic%
1he key to assessing an employeeIs performance is the setting of ob&ectives% A key
element of the performance appraisal process should be revie'ing ho' 'ell the
employee has performed in relation to ob&ectives that have previously been set for them%
For o'Aectives to 'e useful5 it is often said they should 'e S&AR%
Specific
&easurable
Achievable 5Agreed
Result oriented
ime framed
1he appraiser should invite $uestions or $ueries from the appraisee and make sure to
satisfy them% >astly, the appraiser should thank the appraisee for their contribution to th
4-
meeting and their effort through the year, thus helping in closing the appraisal on a
positive note%
Appraisals can become very positive and en&oyable activities if the above mentioned
guidelines are follo'ed%
Appraisals are not just about job performance and job skills training.
They should focus on helping the 'whole person' to grow and attain
fulfllment.
LIITATI!"# !$ A%%&AI#AL
46
A% "roblems 'ith Appraisal MethodsB% @actors Affecting the Appraisal
7% !ssentials of a Good Appraisal System
2% !thics of Appraisal
4A
PRO(%E&S FI1 APPRAISA% &E1O"S
A performance appraisal contains three steps O
defining the &ob,
appraising performance
providing feedback%
Some appraisals fail because subordinates are not told ahead of time e/actly 'hat is
e/pected of them in terms of good performance% Cthers fail because of problem 'ith the
form or procedure used to actually appraise the performance% Still other problems arise
during the intervie',feedback session, 'hich include arguing and poor communications%
"roblems can occur at any stage in the evaluation process% Some of the pitfalls to avoid in
performance appraisal areM ,
1% #nclear performance standards9 3ithout standards, there can be no ob&ective
evaluation of results, only a sub&ective guess or feeling about performance% Standards
should be established by analyzing the &ob output, to ensure that standards are &ob related%
1hose standards that are reasonable, but challenging have the most potential to motivate%
+* #se of a'stract word9 "roblems of evaluation standards might arise because of the
use of very common 'ords for grading, viz% good, ade$uate, satisfactory and e/cellent,
'hich mean differently to different evaluators%
.* Rate errors9 9ate errors include rates bias or pre&udice, halo effect, constant error,
central tendency, and fear of confrontation etc%
B* Poor feed'ac: to employees9 Standards and5or ratings must be communicated to the
employee in order to for the performance evaluation to be effective%
0* $e;ative communication9 1he evaluation process is hindered by communication of
negative attitudes, such as infle/ibility, defensiveness etc%
4=
?* Failure to apply evaluation data9 @ailure to use evaluations in personnel decision,
making and personnel development contradicts the primary purpose of performance
evaluations% 1he use and analysis of multiple criteria as 'ell as the fre$uency of
evaluation also present problems%
FA3ORS AFFE3I$! 1E APPRAISA%
A 'ell,designed performance appraisal system might fail to bring about the desired
results if the appraisers are not properly trained% 1he appraisers or raters often suffer from
the follo'ing kinds of errors or 'eaknessesM
-* 1alo error/ It occurs 'hen the rater allo's one aspect of a man;s character or
performance to influence his entire evaluation% In other 'ords, a supervisor;s rating of a
subordinate on one trait, biases the rating of that person on other traits%
Being a'are of this problem is a ma&or step to'ard avoiding it% Cne 'ay of
minimizing the effect of halo error is to have the supervisor &udge all of his subordinates
on a single factor or trait, before going on to ne/t% In this manner, he can consider all of
the men, relative to a standard or to each other, on each trait%
+* 3entral tendency/ It is perhaps the most commonly found error in performance
appraisal% 1his error occurs 'hen the rater is in doubt about the subordinates, or has
inade$uate information about them, or is giving less attention and effort to the rating
process% So he may play it safe by neither condemning nor praising the subordinates and
may rate them Qaverages;% Such a restriction can distort the evaluations, making them less
useful for promotion, salary, or counseling purposes% 9anking employees instead of using
a graphic rating scale can avoid this central tendency problem%
.* %eniency or strictness/ Some supervisors have a tendency to be easy raters and some
others, to be harsh in their ratings% >enient or easy raters assign consistently high values
4<
or scores to their subordinates and strict or harsh raters give consistently lo' ratings%
Strictness5leniency is not a very ma&or problem%
B* Personal 'ias/ !valuator;s bias to'ard some employees can influence their evaluation%
An effective training of the evaluator can remove this bias% Mode of evaluations and
promotions should be e/amined by managers, to check a possible discrimination at the
time of evaluation and make amends to reduce this bias%
0* Recent (ehavior (ias< Cften some raters value person;s on the basis of their
performance in recent fe' 'eeksF average constant behavior is not checked% Some
employees being a'are of this tendency sho' better results 'hen they feel that they are
being observed and the report of their performance is to be complied soon%
Such appraisal problems can be avoided by follo'ing some simple yet effective
guidelines% 1here are at least three 'ays to minimize the impact of appraisal problemsM
First, be sure to be familiar 'ith the problem% Gnderstanding the problem can help to
avoid it%
Second, choose the right appraisal tool% !ach tool such as the graphic rating scale or
critical incident method has its o'n advantage and disadvantages%
hird, training supervisors to eliminating errors such as halo, leniency, and central
tendency can help them avoid these problems%
-*
ESSE$IA%S OF A !OO" APPRAISA% S=SE&
A program of performance appraisal must consider the follo'ing essential points for it to
be effectiveM
-* It must 'e easily understanda'le* If the system is too comple/ or too time,
consuming, it may be anchored to the ground by its o'n 'eight of complicated forms
'hich nobody but the e/perts understand%
+* he appraisers should 'e ;iven trainin; 'eforehand* Supervisors responsible for
performance appraisal should be 'ell trained in the art and science of performance
appraisal to ensure uniformity, consistency and reliability%
.* It must have the support of all people who administer it*
If the line people think it is too theoretical, too ambitious, and too unrealistic or that the
management has imposed it on them, they 'ill dislike it% Similarly, if they feel that their
role is not very important they 'ill not take the system seriously%
B* he system should 'e sufficiently ;rounded in the reIuirements of the
or;aniHation* It should reflect the value system of the organization% In fact, it should tell
the employees 'hat set of activities or 'hat $ualities are considered desirable by the
organization% As such, it should have linkage 'ith the &ob description%
-1
0* he system should 'e 'oth valid and relia'le* 1he validity of ratings is the degree to
'hich they are truly indicative of the merit of the employees% Both validity and reliability
result from ob&ectivity% 1he appraisal systems of many organizations lack this, 'ithout
taking into account their merit% 1his produces outstanding performers but not outstanding
performance and raises doubts about the validity of the system%
?* he system should have 'uilt/in incentive5 that is, a re'ard should follo'
satisfactory performance% 1his raises the morale of the employees and in turn results in
improvement in performance%
A* he system should 'e open and participative* It should involve employees in the
goal,setting process% 1his helps in planning performance better%
C* he system should focus more on the development and ;rowth of employees than
on generating data for administrative decision,making relating to promotions, increments
etc%
It must help in identifying employees; strengths and 'eaknesses and indicate corrective
actions%
-)
@* he system should 'e periodically evaluated to 'e sure that it is continuin; to
meet its ;oals% 1his 'ill check the danger of the criteria of appraisal becoming sub&ective
rather than the ob&ective% @urthermore, the system may become rigid in a tangle of rules
and procedures, many of 'hich are no longer useful%
-,* here should 'e provision for appeals* 1he employees should have the right to
appeal against appraisals to ensure confidence of the employees and their
association5unions% 1he employees should be given an opportunity to e/press their
feelings on the performance reports%
E1I3S OF APPRAISA%
In performance appraisal, the ethics of appraisal should get due consideration failing
'hich many organizational problems may crop up and the very purpose of appraisal may
be defeated% 1he essence of the appraisal is that one performance is making &udgments
about certain aspects of another% Although he is not making a total &udgement of the other
person;s 'orth, but it is true that he is &udging his resent or future usefulness to a &ob or
an organization% 1herefore, the appraisers should approach employee appraisal as a
thoughtful, serious matter for 'hich they are accountable% In this regard, managers need
to apply a fe' simple rules, 'hich 'ill contribute to their ethical handling of the
appraisal situations%
1he essential components of an effective performance appraisal are as follo'sM
-* "etermination of purpose< 1he ob&ective of the appraisal program may be 'eather to
appraise the actual performance of individuals on their present &obs or to determine the
potential of individuals to do higher &obs or both% Sometimes performance appraisal
programs are associated 'ith ob&ectives like training and development, transfer and
promotion, increase in pay, etc%
+* Selection and trainin; of appraiser/ In order to avoid sub&ectivity in appraisal, it is
advisable to give sufficient training to the appraiser% It is also suggested that t'o persons
-+
should appraise the performance of one man independently, in order to have ob&ective
results%
.* Esta'lishin; standards of performance/ 1he standards of performance should be laid
do'n in clearly and communicated to the subordinates 'ell in advance% 1his 'ill help the
subordinates in understanding the e/pectations of the management%
B* FreIuency of appraisal/ 1he fre$uency of appraisal should be determined by the
ob&ective and scope of performance appraisal%
0* Preparation of forms, Suitable forms should be designed to help the appraisers in
their 'ork% 1he form should be related to the &ob and the contents and design of the forms
should reflect the ob&ectives of the performance appraisal programs%
?* 3onveyin; of results/ 1he results of the appraisal 'hether positive or negative, should
be conveyed to the employees in a considerate manner% Also, certain steps should be
taken based on the findings of the evaluation, like conducting trainings or providing
counseling, for the development of the employees etc%
1o sum up, performance appraisal should be an ob&ective assessment, balanced on
&udgments and unbiased evaluation on the &ob of any performer by his superior%
-4
1E E2A%#AIO$ PRO3ESS
--
ESA(%IS1 PERFOR&A$3E
SA$"AR"S
3O&&#$I3AE PERFOR&A$3E
EMPE3AIO$S O E&P%O=EES
&EAS#RE A3#A% PERFOR&A$3E
PERFOR&A$3E
3O&PARE A3#A% PERFOR&A$3E
FI1 SA$"AR"S
"IS3#SS 1E APPRAISA% FI1 1E
E&P%O=EE
IF NECESSARY, INITIATE
CORRECTIVE ACTION
1E E2A%#AIO$ PRO3ESS
-* ESA(%IS1 PERFOR&A$3E SA$"AR"S
At the time of designing a &ob and formulating a &ob description, performance standards
are usually developed for the position% 1hese standards should be clear and not vague,
and ob&ective enough to be understood and measured% 1hese standards should be
discussed to find out 'hich different factors are to be incorporated, 'eights and points to
be given to each factor and these then should be indicated on the Appraisal @orm, and
later on used for appraising the performance of the employees%
+* 3O&&#$I3AE PERFOR&A$3E EMPE3AIO$S O 1E
E&P%O=EES
1he ne/t step is to communicate these standards to the employees, for the employees left
to themselves, 'ould find it difficult to guess 'hat is e/pected of them% 1o make
communication effective feedback is necessary from the subordinate to the manager%
Satisfactory feedback ensures that the information communicated by the manager has
been received and understood in the 'ay it 'as intended%
.* &EAS#RE A3#A% PERFOR&A$3E
1o determine 'hat actual performance is, it is necessary to ac$uire information about it%
3e should be concerned 'ith ho' 'e measure and 'hat 'e measure% @our sources are
fre$uently used to measure actual performanceM
"ersonal observations
Statistical reports
Cral reports
3ritten reports
B* 3O&PARE A3#A% PERFOR&A$3E FI1 SA$"AR"S
1he employee is apprised and &udged of his potential for gro'th and advancement%
Attempts are made to note deviations bet'een standard performance and actual
performance%
-6
0* "IS3#SS 1E APPRAISA% FI1 1E E&P%O=EE
1he results of appraisal are discussed periodically 'ith the employees, 'here good
points, 'eak points and difficulties are indicated and discussed so that performance is
improved%
?* IF $E3ESSAR=5 I$IIAE 3ORRE3I2E A3IO$S
7oaching, counseling may be done or special assignments and pro&ects may be setF
persons may be deputed for formal training courses, and decision making responsibilities
and authority may be delegated to the subordinates% Attempts may also be made to
recommend for salary increases or promotions, if these decisions become plausible in the
light of appraisals%
1he details given above may vary from organization to organization but these steps
usually form the principal steps5features of a sound evaluation programme%
&E1O"S OF PERFOR&A$3E APPRAISA%
7a8 !RAP1I3 RAI$! S3A%E &E1O"
1he graphic rating scale method provides a form 'herein, for each person 'ho is to be
rated, the number of $ualities and characteristics are enumerated, e%g%, the analytical
ability, decisiveness, leadership, &ob performance, emotional stability, etc% Cne form of
the rating scale is the continuous scale 'herein the rater places a mark some'here on a
continuum as the tabular matter sho's%
-A
WORK ATTITUDE
, 0 -, -0 +,
"! I"'I$$(&("T I"T(&(#T(' ("T)*#IA#TI+
,I-!&!*#
I"T(&(#T T! I"
I" .!&/ I"#T&*+TI!" .!&/
1he rating system generally depends on the allocation of marks in order to $ualify
1he measurement of performance% 1he e/act allocation of marks to differentiate the
performance of one individual from another is, of course, a delicate &ob% Generally, in the
rating, if a man is given <* marks and another ==, it is hardly possible to discriminate
accurately on this basis% 1here are many variations of this method in the graphic form or
descriptive form%
E&P%O=EE 3O&PARISO$ &E1O"
1he employee comparison method can be sub divided into t'o further categories, viz
RA$)I$! &E1O"
1he ranking system re$uires the rater to rank his subordinates on overall performance%
1his consists in simply putting a man in a rank order% 1he ma&or dra'back in this method
is that it does not pinpoint the person strength or 'eaknesses nor tell us of his absolute
'orth% 1his system also cannot be applied in a large undertaking since simple ranking is a
difficult &ob and has limited utility%
FOR3E" "ISRI(#IO$ &E1O"
1his method is designed to prevent the supervisors from clustering their men mostly on
the high side or on the lo' side% It tackles the errors due to e/cessive lenience, stiffness
and central tendency% It re$uires the rater to allocate the rating of his subordinates in a
pattern confirming to a normal curve, e%g%M the supervisor must put 1*K of his people in
the top fe', )*K in the ne/t highest category, 4*K in the middle, )*K in the lo'er and
1*K at the bottom category% Although it is true that most organizations have a 'ork force
'hose abilities and performance fall in a normal curve, yet, this system disregards
e/ceptional cases 'here most of the person may fall into the top category or into the
lo'est category%
3RII3A% I$3I"E$ &E1O"
Some organizations follo' this method, 'hich re$uires every superior to adopt the
practice of keeping a notebook of significant incidents in each employee;s behavior that
indicates his successful or poor performance% 1here are specially designed notebooks
-=
containing appropriate characteristics and categories on the basis of 'hich the
performance rating is done% 1he danger in such a method is that it leads to a danger 'here
the subordinates feel that their boss is breathing do'n their necks% Sometimes, it creates a
difficulty in maintaining high morale%
FIE%" RE2IEF S=SE& &E1O"
1he essence of this method is that line officers do not themselves fill up the rating formF
instead representatives of the personnel department come to the shop floor and intervie'
the supervisors to obtain pertinent information about employees% 1his information is then
sent to the supervisors for approval% 1hen, the men are categorized on this basis%
7ompared to the system of personnel men assessing directly, this system has a better
potential for ob&ectivity%
FREE FOR& ESSA= &E1O"
In this form, no scale, checklists or other devices are used, but a supervisor is simply
re$uired to 'rite do'n his impressions about an individual on a sheet of paper% 1his
system has obvious limitations%
31E3)%ISS &E1O"
7hecklist method can also be further sub divided in t'o broad categories, vizF
FEI!1E" 31E3)%IS &E1O"
In this system a large number of statements that describe a particular &ob are given% !very
statement has a 'eight or scale value attached to it% 3hile rating an employee the
supervisor checks all those statements that most closely describe the behavior of the
individual under attachment% Averaging the 'eights of all the statements checked by the
rater then scores the rating sheet% A checklist is constructed for each &ob by having
persons 'ho are $uite familiar 'ith the &obs% 8udges then categorize these statements and
'eights are assigned to the statements in accordance 'ith the value attached by the
&udges% 1his system, ho'ever, involves too much of staff 'ork and is not feasible in a
large undertaking 'here great many &obs and men are involved%
FOR3E" 31OI3E &E1O"
-<
In this system a rating form is specially constructed for a type or group of &obs 'ith a
group of four to five statements for each factor% 1he appraiser is asked to pick up the
statement, 'hich is the least applicable to the appraisal% 1he 'eight age assigned to the
statements is kept secret from the supervisors% 1hey are only supposed to give the correct
description of the performance of the individual in terms of the higher officer or the
appraiser as to 'hich is in favor and 'hich is against the individual%
!RO#P APPRAISA% &E1O"
1he group appraisal method is in vogue in some organizations% 2ecisions pertaining to
promotions, pay increases, &ob changes and other such issues are discussed in a meeting
bet'een the supervisors and the subordinates%
&A$A!E&E$ (= O(JE3I2E
2ouglas McGregor has developed a ne' performance appraisal techni$ue% .is method
envisages a subordinate setting up his o'n short,term performance goals in cooperation
'ith his supervisor% 1he supervisor guides this process to ensure that it is encouraged to
make an analysis of his &ob, its strengths and 'eaknesses% !very fe' months, the t'o get
together, discuss the progress to'ards the goals and the individual participates in the
process of evaluation% 1his method is useful for e/ecutive cadres, but is not applicable in
the case of a large 'ork force and has limitations in the form of availability of time and
attention%
(E1A2IO#RA%%= A$31ORE" RAI$! S3A%E &E1O"
BA9S combines ma&or elements from the critical incident and graphic rating scale
approaches% 1he appraisal rates the employee on actual behavior on the given &ob rather
than the general traits% 1his method reduces the amount of &udgment re$uired of the rater
and relies mostly on rater;s po'er of observation%
6*
PAIRE" 3O&PAISO$ &E1O"
1his is a modified form of man to man ranking% .erein, each employee is compared 'ith
all others in pair one at a time% 1he number of times an employee is &udged better than the
others determines his rank% 7omparison is made on the basis of overall performance% 1he
number of comparisons to be made can be decided on the basis of the formulaM ,
$ 7$/-8G+
3here 0 is the number of persons to be compared% 1his method is illustrated as underM
A B 7 2 ! @I0A>
A , , , R R +
B R , , R R )
7 R R , R R 1
2 , , , , R 4
! , , , , , -
.erein, plus sign ?RB implies that the employee is considered better and minus sign ?,B
means 'orse than other employees% In the pair Q7; gets the highest number of plus signs,
therefore, his rank is the highest and so on%
"aired comparison method is easier and simpler than ranking method% But it is sub&ective
because appraisal is not based on specific &ob related performance% Secondly, it becomes
very cumbersome 'hen the number of employees to be related is large%
3onfidential Report &ethod
1his is traditional form of appraisal used in most Government organizations% A
confidential report is a report prepared by the employee;s immediate supervisor% It covers
the strengths and 'eaknesses, main achievements and failure, personality and behavior of
the employee% It is descriptive appraisal used for promotion and transfer of employees%
But it involves a lot of sub&ectivity because appraisal is based on impression rather than
61
on data% 0o feedback is provided to the employee% 1he employee 'ho is apprised never
kno's his 'eakness and the opportunities available for overcoming them%
1uman Resource Accountin; &ethod
.uman resource is a valuable asset of any organization% 1his asset can be valued in
terms of money% 3hen competent and 'ell,trained employee leaves an organization, the
human asset is decreased and vice versa% Gnder this method, performance is &udged in
terms of costs and contribution of employees% 7osts of human resource consist of
e/penditure on human resource planning, recruitment, selection, induction, training,
compensation, etc% contribution on human resource is the money value of labor
productivity or value added by human resources% 2ifference bet'een cost and
contribution 'ill reflect the performance of employee% 1his method is still in the
transition stage and is therefore not popular at present%
Assessment 3entre &ethod
An assessment center is a group of employees dra'n from different 'ork units% 1hese
employees 'ork together on an assignment similar to one they 'ould be handling 'hen
promoted% 1he evaluators observe and evaluate employees as they perform% !/perienced
managers 'ith proven ability serve as evaluators% 1hey evaluate all employees
individually and collectively by using simulation techni$ues like role playing, business
games and in basket e/ercises% !mployees are evaluated on &ob related characteristics
considered important for &ob success% 3ith assessment center method, rater;s personal
bias is reduced% But this is a time consuming and e/pensive method% @urther, the
candidate 'ho receives negative report may feel demoralized%
Pro'lems of Performance Appraisal
1he ideal approach to performance evaluation is that in 'hich the evaluator is free from
personal biases, pre&udices, and idiosyncrasies% .o'ever, a single foolproof evaluation
method is not available% Ine$uities in evaluation often destroy the usefulness of the
performance system, resulting in inaccurate, invalid appraisals, 'hich are unfair too%
6)
1here are many significant factors, 'hich deter or impede ob&ective evaluation% 1hese
factors areM
he 1alo Effect or Error
1he halo effect is a tendency to let assessment of an individual;s one,trait influences the
evaluation of that person on other specific traits% 1he halo effect refers to the tendency to
rate an individual consistently high or lo' or average on the various traits, depending
upon 'hether the rater;s overall impression of the individual is favorable or not% 1he halo
effects arise 'hen traits are unfamiliar, ill defined and involve personal relations%
1his often occurs 'hen an employee tends to be more conscientious and dependable, that
the appraiser might become biased to'ards that individual to the e/tent that the appraiser
rates him high on many desirable attributesF or 'hen the employee is more friendly or
unfriendly to'ards the appraiser%
6+
PROBLEMSOF
PERFORMANCE
APPRAISAL
SO3IA%
"IFFERE$IAIO$
&IS3E%%A$EO#S
(IASES
%E$IE$3=G
SRI3$ESS
E$"E$3=
1A%O EFFE3
3E$RA%
E$"E$3=
SI&I%ARI=
ERROR
%eniency or Strictness endency or 3onstant Error/
9elative to the true and actual performance an individual e/hibits, some supervisors have
a tendency to be liberal in the rating i%e% they consistently assign high values to the
employee, 'hile at other times they may have a tendency to assign lo' ratings% 1he
former tendency is kno'n as positive leniency error, 'hile the latter as negative leniency
error%
Both these trends usually arise from varying standards of performance observed by
supervisors and from different interpretation of 'hat they evaluate in employee
performance%
he 3entral endency Pro'lem
It is the most commonly found error% It assigns average ratings to all the employees 'ith
a vie' to avoiding commitments or involvementF or 'hen the rater is in doubt or has
inade$uate information or lack of kno'ledge about the behavior of the employee or 'hen
he does not have much time at his disposal% Such tendency seriously distorts the
evaluations, making them most useless for promotion, salary or counseling purposes%
Similarity Error
1his type of error occurs 'hen the evaluator rates other people in the same 'ay he
perceives himself% @or e/ample, the evaluator 'ho perceives himself as aggressive may
evaluate others by looking for aggressiveness% 1hose 'ho sho' this characteristic may be
benefited 'hile others may suffer% 1his error also 'ashes out if the same evaluator
appraises all people in the organization%
Social "ifferentiation
9ating is sometimes impeded by the evaluator;s style of rating behavior% "igou has
classified raters asM high differentiators, i%e% using all or most of the scale% .e observesM
lo' differentiators tend to ignore or suppress differences, perceiving the universe as more
uniform than it really is% .igh differentiators, on the other hand, tend to utilize all
available information to the utmost e/tend and, thus, are better able to perceptually deny
anomalies and contradictions than lo' differentiators% Social differentiators make
evaluation using trait criteria unreliable%
&iscellaneous (iases
64
Bias against employees on ground of se/, race, religion or position is also common error
in rating% Besides these, there may be opportunity bias, group characteristic bias and
kno'ledge,of, predict nary

Process of the Performance Appraisal in Jaipra:sh Associates %imited

1% 1he personnel department fills up the detail of the employees in the appraisal forms
and for'ards them to different departments% In this form, 1here are various part ?part A to
"art @B
), "art 7 is goal sheet part for Specific Grade? 0,1 to 0,*6B in 'hich to be filled by
Appraisee% 1he goal sheet firstly includes the basic details of the employees% 1hen comes
purpose statement 'here the employees need to mention the purpose of there 'ork% 1he
e/cepted outcome is then measured in the basis of the balanced scored 2imensions 'hich
includesM,
1he learning D innovation 2imension
1he business "rocess 2imension
1he customer 2imension
1he customer 2imension
1he financial 2imension
@urther the goal sheet includes the follo'ing M
1arget
Measure of "erformance

i,Puantity
ii,Puality
iii,7ost
iv,1imelines
6-
+% 1he department heads for'ard those forms to respective initiating officer% 1he
initiating officer then fills his comments5recommendation in those forms and passes those
forms to revie'ing officer in 'hich he ?revie'ing officerB 'rites his comments and
recommendations%
4% After this, the forms goes back to the head of departments5function in 'hich the
department head5function head 'rite his o'n comments for employees i%e% about his5her
"erformance, 'hom to give promotion D special increment etc and send those forms to
the "ersonnel department%
-% After getting those forms "ersonnel department compiles all the data makes the
"erformance Appraisal volume that record all employee details data ?name, date of
&oining, designation, 'ork e/perience, last promotion, and 'ork e/perience in terms of
no% of years on present designation etcB, color coding, financial liability statement of
company%
6,1he performance appraisal volume is then sent to the top,level management in 'hich
they finally decide 'hom to promote, and 'hom to give special increment etc%
Performance Appraisal in JA=PEE is done mainly to meet the followin; o'Aectives9
1% Manpo'er "lanning
)% @or creating and maintaining a satisfactory level of performance of employees in the
present &ob%
+% @or promotion
4% @or salary increment
-% 1o kno' the feeling of the employees to'ard 8AJ"!! practices and policies and about
the other staff%
66
Steps ta:en 'y JA=PEE for performance appraisal 'elow standards9
1% 3arning letters are given to the employee
)% 1ermination
+% Increments are held
4% "romotions are held
-% "rovide training
6% 7ounseling is given
6A
31APER/B/
PRI&AR= FI$"I$!S 4 A$A%=SIS
A(#%AIO$ 4 A$A%=SIS OF "AA
S*$o*
Puestion 9esponse
=ES $O
1%
Are Jou A'are About the policy D "rocedure follo'ed
in the performance Appraisal in your organizationN +* )*
)%
2o you think that promotions and demotions Should be
governed by appraisal resultN
++ 1A
+%
Is Appraisal System 7ontributing in developing or
enhancing your performanceN
)= ))
4%
2o you think that both the employee as 'ell as the
organization are benefited from appraisalsN
)= ))
-%
"erformance Appraisal "rovides an opportunity for self,
revie'%2o you AgreeN
+- 1-
6%
2oes your performance assessment match to your
e/pectactionsN
)= ))
A%
Is any effort made to determine the employee;s
potential, during the appraisal processN
+* )*
=%
2oes the system provide training and development after
appraisalN
1) +=
<%
2o you think the one on one session are effective in
ironing out problems in the 'ork environment
+< 11
1*%
2o you think is there any favoritism happening in the
current appraisal systemN
1* 4*
6=
Performance Appraisal at Jaypee 6<
Analysis
1his diagram reflects the a'areness of the employee regarding the appraisal procedure
and policies in the company% 1he feedback I received sho'ed that S6*K respondent are
a'are about the company policies and procedure of appraisal but 4*K respondent are not
a'are about the policies and procedure of appraisal system in the company% 1his means
that the employees have a clear divide in their perception regarding the appraisal system
and this conveys that employees do not kno' ho' the appraisal is being done D on 'hat
basis and also states that the appraisal system is not transparent 'hich could further lead
to dissatisfaction amongst employees% .ence 8A> management should make efforts to
make the employees a'are about the appraisal system as much as possible to address the
issues of their employees% Better transparency in appraisal 'ill mean more employee
satisfaction%
A*
Policy Awarness
60%
40%
Yes
NO
This diagram re0ects the -o1ernance of %romotion and demotion of
the employee regarding the appraisal result in the company. The
feedback I recei1ed showed that 234 respondent knows that
promotions and demotions go1ern on the basis of performance
appraisal but 53 4 respondents are not familiar with the rest
employees. This means that the employees ha1e a clear di1ide in their
perception regarding the appraisal system and this con1eys that
Appraisal completes on the basis of employee performance. )ence
when we talk about those employees6 who are not familiar with 234
employees. $or those employees6 7AL management should make e8orts to
make the employees aware about the appraisal system as much as
A1
Goverence of Promotion and demotion
65%
35%
Yes
NO
possible to address the issues of their employees. 9etter transparency
in appraisal will mean more employee satisfaction.
Enhancing Performance
56%
44%
Yes
NO
1his diagram reflects that appraisal system is contributing in developing or enhancing the
performance of employees% 1he feed back reflects that -6K respondent feel that current
system helps in enhancing and developing their performance but 44K feel that the
Appraisal system does not enhance or develop their performance 'hich is not $uite good
for the organization it means nearly -*K of employee feel that the current system does
not enhance their performance 'hich is very serious issues for the employees and
organization% Appraisal system should be best 'hen it helps employees to enhance his5her
performance, this can be achieved 'hen appraisal system motivates the employee and
employees came to kno' that on 'hat factors or parameters they are lacking so that they
can 'ork upon it% 1his 'ill further help them to perform better than the last appraisal%
A)
Performance Appraisal at Jaypee A+
Benifited from Appraisal
56%
44%
Yes
NO
A4
performance of employees% 1he feed back reflects that-6 K respondent feel that they get
benefit from the performance appraisal but44 K feel that the Appraisal system does not
provide any benefit% 3hen an employee gets appraisal than obviously both, employee as
'ell as company gets the benefit% It means nearly -*K of employees feel that the current
system does not provide any benefits, 'hich are very serious issues for the employees
and organization% Appraisal system should be best 'hen it helps employees to enhance
his5her performance, by 'hich company 'ill get benefit% 1his 'ill further help them to
perform better%
A-

Self-Review
70%
30%
Yes
NO
1his diagram reflects that appraisal system is very helpful in self revie'% 1he feed back
reflects that A*K respondent feel that appraisal system helps in enhancing and developing
their performance but +*K feel that the Appraisal system does not enhance or develop
their performance 'hich is not $uite good for the organization% Basically as 'e kno' that
appraisal completes on the performance basis% And automatically employees change their
self according to the appraisal% Appraisal system should be best it helps employees to
enhance his5her performance, this can be achieved 'hen appraisal system motivates the
employee%
A6
Assessment match
56%
44%
Yes
NO
1his diagram reflects that !mployees assessment match 'ith the e/pectations%
!mployee assessment should be matched 'ith his o'n e/pectations% 'hich is good for
the company% 1he feed back reflects that +*K respondent feel that !valuation of
performance regarding appraisal match 'ith the employees o'n e/pectations% but A* feel
that the Appraisal system does not match 'ith employee e/pectations 'hich is not $uite
good for the organization it means ma/imum no% of employee feel that the current
system does not provide proper results, 'hich is very serious issues for the employees
and organization% Appraisal system should be best 'hen it helps employees to enhance
his5her performance, this can be achieved 'hen appraisal system motivates the
employee %
AA
Q4 Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree
20% 24% 42% 8% 6%
24% 26% 34% 12% 4%
10% 32% 24% 28% 6%
0% 8% 22% 22% 48%
8% 18% 32% 16% 26%
16% 16% 34% 26% 8%
16% 36% 34% 8% 6%
1his diagram reflects that ho' many people;s are satisfied 'ith the appraisal system
regarding employees potential% 1he feed back reflects that 6*K respondent feel at current
A=
system helps employees to kno' their o'n potential but 4*K employees feel that the
appraisal system does not help them regarding their 'ork potential% it means nearly -*K
of employee feel that the current system does not provide the 'ay to sho' their potential,
'hich is very serious issues for the employees and organization% Appraisal system should
be fle/ible% !mployees must be got chance because of that, they can sho' their potential
to their superiors% It 'ill be beneficial to the employee as 'ell as the organization% 3hen
employees get appraisal than they get motivation and feel their potential%
A<
Performance Appraisal at Jaypee =*
1his diagram reflects 7ompany does not provide any training or development session to
the employees after appraisal% Generally it gives bad impression in the mind of employee,
by 'hich employee performance 'ill be affected% 1he feedback reflects that 6-K
respondent feel that current system does not helps in enhancing their performance but
+-K feel that the Appraisal system enhance their performance 'hich is not $uite good for
the organization it means nearly -*K of employee feel that the current system does not
enhance their performance 'hich is very serious issues for the employees and
organization% 3hen employee get appraisal than !mployee should get training and
development session, it is very necessary to the employee as 'ell as for the organization%
3ith the help of training and development, employees improve his performance and
organization gets the better results%
=1

))K percent of the employees responded by saying that the one on one sessions are not
efficient in ironing out problems mainly because since they are done on a formal basis so
most employees consider it &ust as a formality 'hich the appraiser uses to impose the
rating he has already given to an employee% 1he employee therefore does not e/pect the
rating to change after a one on one session 'ith the supervisor But A=K responded by
saying that one on one session is very effective% In this session superior talk to employee
and ask many $uestions after that he 'ill &udge the employee in this session employee
can talk to anything 'ith superior if they have any doubts% In one on one session is very
effectively for employee as 'ell as organization, improve the appraisal system and
increase the satisfaction level of the employee%

=)
Effective of one on one session
78%
22%
YS
NO
Favoritism
20%
80%
YS
NO
performance of employees% 1he feedback reflects that )*K respondent feel that current
system favors the favoritism, but =*K feel that the Appraisal system does not favor any
=+
favoritism 'hich is good for the organization it means !mployees have a faith in the
company, basically 'hich is good for the company% It 'ill help employees to enhance
their performance 'hich is better for the employees and organization% Appraisal system
should be best 'hen it helps employees to enhance his5her performance, this can be
achieved 'hen appraisal system motivates the employee% It is an essential thing that
sfavoritism should not be in the organization% It gives bad impression on the employee
and also effects on the performance of employees%

Appraisal System Rating
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Parameters
R
a
t
i
n
g
!rans"aren#y
Satis%a#tion
!r&e 'i#t&re
(airness
)oti*ation
+"e#tations
!rans"aren#y ,
-on%i.en#e
!alent
)anage/ent 0ole
O*erall
=4

1he basic ob&ective of this $uestion 'as to find about the employee perception about the
transparency of the appraisal system% 1he average score that I calculated from the
responses received 'as )%*6 'hich is clearly indicates that employees have a clear divide
in their perception of the appraisal system and almost half of them are dissatisfied 'ith
the transparency issue% his shows there is no transparency in the Performance
Appraisal system% .ence organization should 'ork on this aspect and try to make the
system as transparent as possible because that makes employees more satisfied and
motivated to 'ork hard and they can also understand in 'hich factor they are lack and on
ho' they can do better 'ork and perform 'ell%
1he pie chart representation of the responses to this $uestion is sho'n belo'% 1he chart
clearly sho's that ma&ority of the employees think that the transparency is avera;e*
Transparent
5:4
:;4
<:4
<;4
=4
#trongly 'isagree
'isagre
"either Agree "or
'isagree
Agree
#trongly Agree

=-
1he Cb&ective of the second $uestion 'as to measure the employee;s satisfaction 'ith
the performance appraisal system% 1he feedback received sho's that ma&ority of the
people are not satisfied 'ith the e/isting performance appraisal system, many 'ant self,
appraisal to be follo'ed% 1his is the greatest concern for the organization as, if the
employees are dissatisfied them they 'ill not be motivated to perform 'ell D 'ork hard
so the company should address this issue at the earliest%
1he pie chart representation of the responses to this $uestion is sho'n belo' the chart
clearly sho's that ma&ority of the employees satisfaction is avera;e
=6
Satisfaction level
=;4
524
5=4
<;4
=4
#trongly 'isagree
'isagree
"either agree "or 'isagree
Agree
#trongly agree

P+ In this $uestion I 'anted to analyze the fact that do employee believe that the their
performance and hard 'ork is truly assessed by the organization i%e% do they feel that
'hatever appraisal they received is done on basis of their actual performance because
mostly it happens in many organization that the employees feel that the appraisal that
they received does not reflect their true D accurate performance i%e% they had 'orked
=A
harder but the appraisal result indicate that they had not 'orked that hard% 1his mismatch
bet'een employees perception D organization e/pectation is the cause of the great
dissatisfaction among the employee of the company% 1he feedback received sho's that
ma&ority of employees in this organization feel that the appraisal does not reflect true
picture of their performance, they 'ork harder than 'hat the appraisal system reflect
them as%
1he pie chart representation of the responses to this $uestion is sho'n belo' the chart
clearly sho's that ma&ority of the employees think that their performance is not truly
assessed by organization%
==
True Picture
=:4
:;4
=;4
>4
>4
#trongly 'isagree
'isagree
"either agree"or
'isagree
Agree
#tongly Agree
1he ob&ective in this $uestion 'as to analyze the employee;s perception about the
fairness in the performance appraisal system% .ere responses received indicate that
ma&ority of employee;s feels that the performance appraisal system is not fair and is
biased% 1his is a very critical problem as if the performance appraisal system is not fair
then the employees tend to lose faith in the organization system and procedure% .ence the
=<
organization should address the issues as soon as possible by encouraging more
subordinate and manger interaction% Increasing trust bet'een superior and subordinates
making sure at each step that the appraiser is fair 'hile evaluating any subordinates
performance% More fairness 'ill not only improve performance but also ensure employee
retention%
clearly sho's that ma&ority of the employee;s think that there the performance appraisal
system is not so much fair and they are unsatisfied 'ith it*
Fairness
=;4
=:4
:=4
>4
24
#trongly
Agree
'isagree
"either
Agree "or
'isagree
Agree
#trongly
Agree
1he ob&ective of this $uestion 'as to gauge the motivation level of employees from the
e/isting appraisal system% If the performance appraisal system is good and employees
feel satisfied 'ith it then they get motivated by it to 'ork harder to get better appraisals
<*
but in organization ma&ority of employees find the performance appraisal to be an
average motivator i%e% %)%+6% 1his sho's that there are certain loopholes in the e/isting
system that it is not able to motivate its employees to great e/tent% >o' motivation could
affect the overall performance of the company as a company is as ;ood as its
employees* If the employees do not 'ork, the company is sure to suffer in future%
clearly sho's that ma&ority of the employees think that the performance appraisal system
is not able to motivate its employees to a great e/tent%
Motivation
=:4
=24
5:4
<=4
:4
#trongly
'isagree
'isagree
"either Agree
"or 'isagree
Agree
#trongly
Agree
<1
1he main ob&ective of this $uestion 'as to find out the e/isting appraisal system is able
to take care of the employee;s e/pectations from the organization% 1he responses received
indicate that ma&ority of employees ?)%A4B feels that it is average in terms of taking care
of their e/pectation% .ence ma&ority feels that the e/isting p erformance appraisal system
does not take care of the e/pectations to the desire e/tent% 1his is another serious concern
and the management should devise a performance appraisal system to meet the
employee;s e/pectations in a better manner%
1he pie chart sho's that the ma&ority of employees feel that the performance appraisal
system is &ust avera;e in terms of taking care of employee;s e/pectations%
Expectation
<;4
5=4
=:4
=>4
24
#trongly
'isagree
'isagree
"either Agree
"or 'isagree
Agree
#trongly Agree
<)
1he main ob&ective of this $uestion 'as to find out the transparency in appraisal system
makes the employee more confident that his performance has been accurately appraised%
1he feedback received indicates that ma&ority of employees believe in this philosophy
and feel that their confidence level goes up if the performance appraisal system is
transparent because then they kno' about their strengths D 'eakness better also they get
an opportunity to learn from their mistakes and 'hen the performance appraisal system is
transparent the employees kno's that 'hatever feedback he 'ill receive from his senior
'ill be fair, &ustified and for his betterment and improvement 'hich makes the employee
confident about his personal D professional gro'th prospects% A transparent performance
appraisal system also motivates an employee to 'ork more in sincere manner since he
kno's on 'hat parameter he has been appraised%
1he pie chart clearly sho's that ma&ority of people think that if there is transparency in
appraisal system that can definitely make employee more confident and more satisfied
to'ard their 'ork%
Transparency a!es ore Con"#ent
;4
>4
==4
==4
:>4
#trongly
'isagree
'isagree
"either
Agree "or
'isagree
Agree
#trongly
Agree
<+
1he "urpose of this $uestion 'as to understand the nature of performance appraisal
system in 8A>% 1hat 'hether it encourages creativity and innovation in 'ork environment
or not% 1he feedback received revealed that the performance appraisal system is above
average in encouraging innovative ideas Dout of the bo/ thinking type of environment%
.ence the employees feel that there are provided support in being innovative or creative
or e/ceptionally talented% 1his intern 'ill also help the company separate the average
performer from the star performer%
1he pie chart sho's that the ma&ority of employees i%e% +)K have given + on - sho'ing
that creativity and innovation is not encouraged to that e/tent, as it should% But it;s ;ood*
Talent
>4
<>4
5=4
<24
=24
#trongly
'isagree
'isagree
"either Agree
"or 'isagree
Agree
#trongly
agree
<4
1he ob&ective of this $uestion is to kno' about the management takes appraisal system
seriously and it;s aligned 'ith organization vision5mission5goals etc% the feedback
received for this $uestion reflects that ma&ority of people feel the management is
moderately serious about the appraisal system and is not as serious as it is e/pected to be%
Also ma&ority of employees do not agree that management has designed its appraisal
system keeping in mind its vision and mission%
1he pie chart sho's that the ma&ority of employees have given + on scale of - on this
issue% 1he employees feel that the management is moderately serious about the appraisal
system and is not as serious as it is e/pected to be the performance appraisal system is
&ust ;ood in terms of taking care of employees%
Mana$eent Role
<24
<24
5:4
=24
>4
#trongly
'isagree
'isagree
"either
Agree nor
'isagree
Agree
#trongly
Agree

<-
FREJ#E$3= OF PERFOR&A$3E APPRAISA%

Performance appraisal times $o* Of Respondents Percenta;e 7N8
Jearly += A6
.alf,yearly < 1=
Puartely + 6
otal 0, -,,
Sources9 Primary "ata
I$ERPREAIO$9
@rom the above table, it can be inferred that A6K of the respondents agree that
performance appraisal Should conduct yearly,1=K of the 9espondents agree that
"erformance Appraisal Should conduct half,yearly and +K employees say that Appraisal
Should conduct Puartly %7ompany conduct performance Appraisal yearly and ma/imum
no% of employee respond that Appraisal should be conduct yearly, It is very ;ood
respons
Area of he Improvement
Area of the improvement $o* Of Respondents Percenta;e 7N8
Standards +- A6
Monetary of incentives - 1=
@re$uency of appraisal 1* 6
otal 0, -,,
Sources9 Primary "ata
I$ERPREAIO$/ @rom the above table, it can be inferred that A6K employee
respond that organization should be improve standard, 1=K response that improvement
should be monetary incentives and 6K employee respond that improvement of fre$uency
<6
of appraisal% @re$uency of appraisal is very satisfactory, ma/imum no% of people 'anted
to be improve standard, Appraisal form is ;ood% but one on one session ,+6* degree,
Self Appraisal is not include in the Appraisal System%

3riteria Of he Ratin;
3riteria of the ratin; $o* Of Respondents Percenta;e 7N8
Based on abilities and skills%

)* 4*
Based on management
reference
1< +=
Based on superiority 6 1)
Based on contribution - 1*
otal 0, -,,
Source 9 Primary
Interpretation @rom the above table, it can be inferred that 4*K employee
respond that criteria of the rating of the company is based on abilities and skills and 1<K
say that based on management reference and 1)K based superiority and 1*K based on
contribution% 1his means that the employees have a clear divide in their perception
regarding the appraisal system and this conveys that employees are not satisfy for rating
system because they feel that system is not transparent 'hich could further lead to
dissatisfaction amongst employees% Better transparency in appraisal 'ill mean more
employee satisfaction%
31APER/0
<A
O'servation and 3onclusion
In my training my main ob&ective 'as to learn about the performance appraisal process at
8aiprakash Associates >imited D to observe D learn about result of my study I have earnt
a lot D on the basis of my observations I have given certain recommendations% I observed
that there are certain gaps in the performance Appraisal process that need to be filled for
increasing the productivity of the employees, D as a result in achieving the desired goal
!very organization has a different kind of performance Appraisal system% !ven so, the
reaction to revie's is often the same% "erformance Appraisal sets out to encourage
individuals to think about revie's in a ne' 'ay, so they stop dreading them and start
seeing them in a more positive light% 1he "erformance appraisal is a very important .9
function that acts as motivation tool for employees of any organization% It;s crucial and
critical for the success of employees and organization as 'ell% An unbiased, transparent,
open Appraisal System act as motivator and performance enhancer for employees and on
the other hand, appraisal system that has biasness, unfair measures of performance
evaluation, nor transparent etc act as ma&or demotivator for the employees and hence in
many organization it leads to the high attrition rate% 1he aim of this pro&ect 'as to
evaluate the performance appraisal system of 8aiprakash Associates >imited% @or this
purpose I designed D circulated $uestionnaire among various employees of 8aiprakash
Associates >imited at sultanpur office% 1he feedback received sho's that performance
appraisal system in 8aiprakash associates >imited is not transparent% 1he employees are
not a'are 'ho does their performance revie'% Ma&ority of the employees are not
convinced by methodology used for "erformance appraisal System by 8aiprakash
Associates limited and are completely dissatisfied% Better performance Appraisal system
'ill ensure lo' employee turnover, enhance performance and better future prospect%
1his sho's that 8aiprakash Associates >imited need to re'ork performance Appraisal
strategy% If the employees are dissatisfied than they 'ill not 'ork hard as they then% 2o
not see themselves progressing and getting returns of their hard 'ork% .ence to conclude
the organization needs to incorporate +6*,degree appraisal or self,appraisal methodology
there by satisfying their 'ork force%
<=
It has been a great e/perience to be a part of 8aiprakash Associates >imited no matter for
a small time %its great pleasure to be here in this organization 'here I got to apply my
theoretical kno'ledge into practical% I have been able to e/perience the actual 'ork
setting D to kno' about various functions that fall in the kitty of .9 D "ersonnel
2epartment%

<<
Su;;estions
1he organization needs to incorporate self/appraisal or .?, de;ree feedback
system of "erformance Appraisal%
1here should be an open manager D subordinate interaction so that employees are
able to communicate their $uery and grievances%
1he organization should try to incorporate transparency in their performance
appraisal system as this instills employees faith in the organization%
1he 'ork should be target oriented D the parameters they measure the performance
should be kno'n to employees%
1he parameter in the "erformance Appraisal system should be as such that they are
easily evaluated%
System should be devised to promote young people 'ith fresh D innovative ideas%
1he organization Should try to give training and development system after
Appraisal because company do not provide any training system but It is very
important to give training for 'eak employees% It is very helpful to make good
organization%
7ompany should give Reward for motivating to good and hard 'orking
employees%
Crganization provide opportunity for self,Appraisal to some specific grade but to
give opportunity all grade, So company should give goal sheet form for all
employees%
1**
)E= %EAR$I$!S
>earned about Crganization structure, 3ork culture and 7orporate !nvironment%
Studied about all the .9 policies and practices of 8aiprakash Associates >imited
>earned about performance appraisal system, methodology and ho' it;s done in
8aiprakash Associates >imited%
>earned about SA" And Marshman System%
>earned payrool
>earned about 9ecruitment "rocess , ho' can conduct intervie's and ho' it;s done
in 8A>
Studied about "rovident @und and !SI in compliance%
As my pro&ect re$uired me to design a $uestionnaire so I learned about various
methodology to evaluate the $uestionnaire and the 'ay to design it as 'ell%
>earned about various corporate eti$uettes and communication involved in
interacting 'ith the top management and the employee of the organization%
>earned about the 'orking style of corporate by daily interaction and 'orking%'ith
the employees of various levels%
1*1
APPE$"IM
Questionnaire
2ear Sir5Madam, please consider the statement and fill your response% 1he related
information 'ill be confidential and only be use for academic purposes% I am a student of
I0S1I1G1! C@ A2:A07!2 MA0AG!M!01 D 9!S!A97., G.ATIABA2 ?G%"B%
Puestion 1M Are you a'are about the policy D procedure follo'ed in the performance
Appraisal System in your organizationN
Jes U V 0o U V
Puestion )M 2o you think that promotions and demotions should be governed by
appraisal resultN
Jes U V 0o U V
Puestion +9 Is Appraisal System contributing in developing or enhancing your
performanceN
Jes U V 0o U V
1*)
Puestion 4M 2o you think that both, the employee as 'ell as the organization are
benefited from appraisalN
Jes U V 0o U V
Puestion -M "erformance appraisal provides an opportunity for self,revie'% 2o you
agreeN
Jes U V 0o U V
Puestion 6M .o' often does your performance assessment match to your e/pectationsN
Jes U V 0o U V
Puestion AM Are any efforts made to determine the employee;s potential, during the
appraisal processN
Jes U V 0o U V
Puestion =M 2oes the system provide training and development after appraisalN
Jes U V 0o U V
Juestion @M 2o you think the Cne on Cne session are effective in ironing out problems in
the 'ork environmentN
Jes U V 0o U V
Puestion 1*M 2o you think is there any favoritism happening in the current Appraisal
SystemN
Jes U V 0o U V
1*+
Puestion 11M According to you 'hat should be the fre$uency of performance appraisalN
1,Jearly ), .alf,yearly +, Puarterly
Puestion 1), 3hich are the areas that should be improved uponN
?1B Standards ?)B Monetary Incentives ?+B @re$uency of Appraisal ?4B
Appraiser
Puestion 1+M Cn 'hat criteria is employee performance ratedN
1% Based on abilities and skills%

)% Based on management reference%
+% Based on superiority%
4% Based on contributionM
"lease rate the "erformance Appraisal System# in your organization on follo'ing
parameters on a scale of 1 to - ?1 being lo'est D - being highestBM
1 O Strongly 2isagree ) O 2isagree + O Agree 4 O0either Agree
nor 2isagree -,Strongly Agree

Puestion 14M 2o you agree that your Appraisal System is transparentN
W1X W)X W+X W4X W-X
Puestion 1-M Are you satisfied 'ith your current Appraisal SystemN
W1X W)X W+V W4X W-X
Puestion 16M 2oes your Appraisal System reflect a true5accurate
picture of your performance on the &obN
1*4
W1X W)X W+V W4X W-X
Puestion 1AM 2o you think Appraisal System is fair and not all biased on the basis of
personal relations etc%N
W1X W)X W+X W4X W-X
Puestion 1=M 2o you think the current Appraisal System motivates youN
W1X W)X W+X W4X W-X
Puestion 1<M Appraisal System truly takes care of the employee;s e/pectations from the
organizationN

W1X W)X W+X W4X W-X
Puestion )*M 2o you think that transparency in Appraisal System makes employee more
confident about their performanceN
W1X W)X W+X W4X W-X
Puestion )1M Appraisal System takes into account the e/ceptional performance5talent, out
of the bo/ thinking, innovative ideas given by the employeesN
W1X W)X W+X W4X W-X
Puestion ))M 2oes management takes Appraisal System very seriously and has it aligned
'ith organizations vision5mission goals5ob&ectivesN
W1X W)X W+X W4X W-X
1*-
Puestion )+M 3hat do you like and dislike about the performance Appraisal SystemN
(((((((((((((((((((((((((((((((((
(((((((((((((((((((((((((((((((((%
Puestion )4M 2o you like to suggest anything to improve the current "erformance
Appraisal System#N
((((((((((((((((((((((((((((((((%
((((((((((((((((((((((((((((((((
"ersonal information G!02!9 ?M5@B((%%
0ame ?optionalB((( 7ompany5division(
2esignation((%%
1hanks for your valuable time%
1*6
(I(%IO!RAP1=
Baner&ee ShyamalF "rinciples and "ractices of Management#F C/ford D IB.
"ublishing 7o% "vt% >td%F 1<<*%
2'ivedi 9% S%F Manpo'er Management#F "rentice .all of India "vt% >td%, 0e'
2elhiF 1<=4%
Mamoria 7% B% D Gankar S% :%F .uman 9esource Management#F .imalaya
"ublishing .ouseF )**+%
1ripathi "% 7%F "ersonnel Management and Industrial 9elations#F Sultan 7hand D
Sons, 0e' 2elhiF )**)%
Reference 4 AnneDure
'''%'ork<11%com
'''%archernorth%com
'''%humanrightinitiative%org
'''%fotosearch%com
1*A

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Performance Appraisal at Jaypee

Summer Internship Report

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