A

STUDY ON THE CONCEPT

OF

“PERFORMANCE APPRAISAL”

AT

CARE HOSPITALS
(QUALITY CARE INDIA LIMITED)

4GXTW-WD6YP-CGJ4F-2C7FQ-XD3D7

1
 DECLARATION

I, the undersigned hereby declare that the project work entitled

“Perrformance Appraisal in CARE Hospitals”, written and submitted

under the guidance of my guide Mr. K. Radha Manohar at CARE

Hospitals and my college faculty Mr.B.Srinivas is my original work.

I hereby declare that this project report titled “PERFORMANCE

APPRAISAL METHODS - A CASE STUDY OF CARE HOSPITALS”

being submitted V.S.M COLLEGE , is my own and has not been

submitted anywhere before to any other university or institution partially

or fully for the abound of degree/ diploma/ certificate.

Date:

P. SAI SWAPNA

2
 ACKNOWLEDEMENT

“Behind every success lie invisible hands of so many able persons

without whom this achievement would have never come into existence”. I
lay some words of gratitude to them.

First and foremost I humbly express my gratitude to Dr.

(Maj) Gurjit Singh MongaChief Hospital Administrator and (Col.)
Rajgopal, Chief of HR Department for giving me the opportunity to
undergo my project training in CARE HOSPITALS.

I would like to thank and express my sincere gratitude to my guide

Mr.K.RadhaManohar, Manager HRD for his valuable guidance,
encouragement and suggestions through out my project work.

I thank to whole staff of CARE HOSPITALS for their cooperation

in the project work. Without their contribution this study would not have
been completed.

I extend my gratitude to Mr., Principal, Mr.M.Pattabiramayya, Head

of the Department, V.S.M COLLEGE Mr.B. Sriniva Rao Sir, my internal
guide for his continuous support during the project work.

I specially thank My Parents and My Friends who gave me moral

support in every aspect for the completion of my project successfully.

P.SAI SWAPNA

3
 ABSTRACT

The CARE HOSPITALS, Nampally, Hyderabad has given me an

opportunity to do the project and provided all the information. My project report
is on Performance Appraisal.

Performance Appraisal is the outcome and practice of HRM and the

appraisal system in the organization. Performance Appraisal at this plant can be
designed as the long term process and well planned. The Performance Appraisal
is an objective as long as there is growth of the organization and employment
generation.

“Performance appraisal is the formal systematic assessment of how well

employees are performing their jobs in relation to established standards and
communication of the assessment to employees”.

The present environment prefers a skilled employee who has creative

thinking and better efforts performance and responsibilities.
Some major purpose of Performance Appraisal is

• Administrative purpose
• Employee development purpose
• Program assessment purpose

In this project report some modern methods are remedial measures,

traditional method, ranking method and paired comparison method are used to
appraise the employee according to their department and job specification.

But comparatively I have found a good appraising system between the

employees, employers, management and trade unions.

Performance appraisal system in the CARE HOSPITALS done on yearly

bases but sample size I have taken in project is for 30 employees all levels of this
organization including trade union leaders. Primary data is collected
questionnaires, observation and personnel interview.

Besides the measures taken and favor done by the organization to

improve the performance appraisal system to provide interest on their job
security.

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 CONTENTS

CHAPTER TITLE PAGE

NO. NO.

I INTRODUCTION 6-10

MEANING AND DEFINITION OF THE STUDY

OBJECTIVES OF THE STUDY
SCOPE OF THE STUDY
LIMITATIONS OF THE STUDY
RESEARCH METHODOLOGY
II REVIEW OF LITERATURE 11-43

INTRODUCTION TO HRM
2) INTRODUCTION TO PERFORMANCE APPRAISAL

III ORGANIZATIOANL PROFILE 44-70

1) PROFILE OF CARE HOSPITALS

2) PERFORMANCE APPRAISAL IN CARE HOSPITALS

IV DATA ANALYSIS 71-91

DATA ANALYSIS AND INTERPRETATION

V CONCLUSIONS 92-99

1) FINDINGS AND CONCLUSIONS

2) SUGGESTIONS
3) ANNEXURE
4) BIBLIOGRAPHY

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 CHAPTER-I

1) MEANING AND DEFINITION OF THE STUDY

2) OBJECTIVES OF THE STUDY

3) SCOPE OF THE STUDY

4) LIMITATIONS OF THE STUDY

5) RESEARCH METHODOLOGY

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 MEANING AND DEFINITION OF THE STUDY

MEANING:

Performance appraisal is a method of evaluating the behavior of employees in

the work spot, normally including both the quantitative and qualitative aspects of job
performance. Performance here refers to the degree of accomplishment of the tasks
that make up an individuals job. It indicates how will an individuals is fulfilling the
job demands. Often the term is confused with effort, but performance is always
measured in terms of results and efforts.

DEFINITIONS:

“Performance Appraisal is the process of determining from how well some

one is performing in his or her job it involves measuring performance and
comparing it with an established standard”.

-JOHN PEARCE AND RICHARD ROBINSON

“Performance appraisal is a method of evaluating the behavior of the
employees in the work spot, normally including both the quantitative and
qualitative aspects of the job performance”.
-V.S.P.RAO

“Performance appraisal is the system of evaluation of the individual with

regard to his/her performance on the job and his/her potential for development”.

--Dale S. Beach
“Performance Appraisal is a systematic, periodic and an impartial rating
of employee’s excellence in matter pertaining to his/her present job and his/her
potential for a better job”.
--Edwin B. Flippo

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 OBJECTIVES OF THE STUDY

The objective of the study is the survival of every organization in the market it is
very essential to enhance its production and productivity. To raise the production and
productivity, human resources are important factor.

The efficiency of the workmen raises the production and productivity

Performance Appraisal System can work as a good motivational factor to improve the
efficiency of the workman.

• To study the Performance Appraisal System’s for executions in CARE

HOSPITALS, Hyderabad.

• To study the employees attitude towards Performance Appraisal System.

• To find out the possible errors and problems in the Performance Appraisal
system.

• To evaluate the effectiveness of Performance Appraisal system.

• To suggest some suitable changes in the existing Performance Appraisal

System’s

• To understand the system of H.R. its content tools of methodology

SCOPE OF THE STUDY

The study was intended to obtain information about:

• The Performance standards of an employee

• The quality of work in the organization since the quality of work depends on the

performance of the employee.

• Perception among employees regarding Performance Appraisal.

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 LIMITATIONS OF THE STUDY

• The major limitation of the study is the limited time period of 60-days.

• It was difficult to personally interview a large number of executives and to seek

their opinions on relevant issues.

• Sample size being small not every body’s view could be considered. Problem
will be increased with the confidential information.

• Errors are introduced in the appraisal because of a defect or bias in the person
conducting the appraisal.

• There is often a lack of communication whereby the employee does not know
he is rated.

• Apart from lack of communication, sometimes communication of the rating to

the employee, if not done properly, would be taken as a criticism and may even
result in his performing more poorly.

• Often a supervisor is reluctant to give a low rating to an ineffective subordinate

and gives him an average rating.

RESEARCH METHODOLOGY:
Method of sampling:

The basic idea of sampling is that by selecting some of the elements in a

population we may draw conclusion about the entire population. This has an important
bearing on the collection of the reliable data of the present study is to acquire an
intensive opinion about the quality of work life in CARE HOSPITALS, NAMPALLY,
HYDERABAD.
For this purpose a descriptive research method was followed for the present
study. The study in this context has utilized available material about various aspects of

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HRM, data collected through well designed questionnaire by giving to the employees
of CARE HOSPITALS at Hyderabad.
Sample size:

In the present study of performance appraisal in CARE HOSPITALS, 30

employees were selected randomly for sampling

Construction of tools:

The tool used for collecting the data for the study is questionnaire. A
questionnaire is simple, a formulized schedule to obtain and record specified and
relevant information with tolerably accuracy and completeness. Data was collected
through a specially designed questionnaire with 15 questions.

SOURCES OF DATA:
Collection of data is form both the primary and secondary sources
• Primary data: Data is collected through a well designed and approved
questionnaire and also interviews
• Secondary data: It is collected from the records of the organization, and SOP
from HRD Dept.

FRAMEWORK OF ANALYSIS:
For analysis and interpreting the collected data through primary data is part to

statistical techniques namely, percentage analysis and graphical analysis with bar

charts. It is used arriving at valid reliable conclusion.

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 CHAPTER-II

1) INTRODUCTION TO HRM

2) INTRODUCTION TO PERFORMANCE APPRAISAL

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 REVIEW OF LITERATURE

1. INTRODUCTION OF HUMAN RESOURCE MANAGEMENT:

HRM is the management of employees, skills, knowledge, abilities, talents,
aptitudes, creative abilities etc. Employee in HRM is treated not only as economic man
but also as social and psychological man. Thus, the complete man is viewed under this
approach. Employee is treated as a resource. Employees are treated as a profit centre
and therefore, invert capital for HRD and future utility.

NATURE AND SCOPE OF HR’s:

People in any organization manifest themselves, not only through individual
sections but also through GP interactions. When individual come to work place, they
come with not only technical skills, knowledge etc, but also with their personal
feelings, perception, desires, motives, attributes, values etc, therefore, employee
management in an organization does mean management of not only technical skills but
also other factors of the human resources.

MEANING OF HR’s MANAGEMENT:

Different terms are used to denote HR’s management. They are labour
management, labour management relations, employee, employer relations and industrial
relations.

Personnel Administration, Personnel Management, Human Capital

Management, Human Asset Management, and the like. Though these terms can be
differentiated widely, the basic nature of distinction lies in the scope or coverage and
evolutionary stage.

In simple sense, human resources management means employing people their

resources, utilizing, maintaining and compensating their service in tune with the job
and organizational requirements.

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DEFINITIONS:

“HRM is a process consisting of four functions, acquisition, development,

motivations and maintenance of HR’s”
Robbin & Decenzo
HRM has been defined as a strategic and coherent approach to the management
of an organization most valued assets the people working these, who individual and
collectively contributes to the achievement of its goals
Armstrong (1999)
OBJECTIVES OF HRM:

The basic aims & objectives of HRM are to help the realization of the

organizational goals.

• To ensure effective utilization of human resources. All other organizational

resources will be efficiently utilized by the human resources.

• To ensure respect of human beings by providing various services and welfare

facilities to the personnel.

• To ensure reconciliation of individual group goals with those of the

organization in such a manner that the personnel feel a sense of commitment
and loyalty towards it.

• To identify and satisfy the needs of individuals by offering various monetary

and non-monetary rewards.

• To achieve and maintain high morale among employees in the organization by

securing better human relations.

• To establish and maintain an adequate organizational structure of relationships

among all the members of an organization by dividing of tasks with in the
organization into functions, positions, and jobs, and by defining clearly the
responsibility, accountability, authority for each job and its relation with other
jobs in the organization. HRM tries to improve morale by providing adequate

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 training to workers and by achieving for itself knowledge of human nature
which is “the totality of motives that cause human actions”.
Functions of HRM:

The function of HRM can be broadly classified in to two categories.

(I) Managerial functions and

(II) Operative functions.

I. Managerial functions:
Managerial functions of personnel management involve planning, organizing,
directing and controlling. All these functions influence the operative functions.

(i) Planning: It is a pre-determined course of action. Planning is determination of

personal is determination of personnel programmes and changes in advance that
will contribute to the organizational goals.
(ii) Organizing: An organization is a means to an end. It is essential to carry out
the determined course of action.
(iii) Directing: The next logical function after completing planning and organizing
is the execution of the plan. The basic function of personnel management at any
level is motivating, commanding, leading and activating people. The willing
and effective co-operation of employees for the attainment of organizational
goals is possible through proper direction.
(iv) Controlling: After planning, organizing and directing the various activities of
personnel management, the performance is to be verified in order to know that
personnel functions are performed in conformity with the plans and directions.
Controlling also involves checking, verifying and comparing of the actual with the
plans, identification of deviation if any and correcting of identified deviations.

II. Operative Functions:

The operative functions of personnel management are related to specific
activities of personnel management viz., employment, development, compensation and
relations. All these functions are interacted by managerial functions. Further these
functional are to be performed in conjunction with management functions.

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(i) Employment: It is first operative function of Human Resources
Management. Employment is concerned with securing and employing the
people possessing required kind and level of human resource necessary to
achieve the organizational objectives. It covers the functions such as job
analysis, human resource planning, recruitment, selection, placement, induction
and internal mobility.
a. Job analysis: It is the process of study and collection of
information relating to the operations and responsibilities of a specific job.

b. Human Resource planning: It is a process for

determination and assuring that the organization will have an adequate
number of qualified persons, available at proper times, performing jobs
which would provide satisfaction for the individual involved.

c. Recruitment: It is the process of searching for

prospective employees and stimulating them to apply for jobs in an
organization.

d. Selection: It is the process of ascertaining the

qualifications, experience, skill, knowledge etc. of an applicant with a view
to a appraising his/her suitability to a job appraising.

e. Placement: It is the process of assigning the selected

candidate with the most suitable job in terms of job requirements. It is
matching of employee specification with job requirements.

f. Induction and Orientation: Induction and orientation are

the techniques by which a new employee is rehabilitated in the changed
surrounding and introduced to the practices, policies, purpose and people etc., of
organization.

II. Human Resources Development: It is the process of improving,

Moulding and changing the skills, knowledge, creative ability, aptitude, attitude,

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 values, commitment etc., based on present and future job and organizational
requirements.
This function includes:
a. Performance Appraisal.
b. Training.
c. Management Development.
d. Career Planning and Development.
e. Internal Mobility.
f. Transfer.
g. Promotion.

III. Compensation:

It is the process of providing adequate, equitable and fair remuneration to the

employees. It includes
1. Job evaluation.
2. Wage and salary.
3. Administration.
4. Incentives,
5. Bonus,
6. Fringe benefits,
7. Social security measures etc.

IV. Human Relations:

Practicing various human resources polices and programmes like
employment, development and compensation and interaction among employees
create a sense of relationship between the individual workers and management,
among workers and trade unions and management.

V. Effectiveness of Human Resources Management:

Effectiveness of various personnel and practices can be measured or
evaluated by means of organizational health and human resources accounting etc.
1. Organizational Health.

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 2. Human Resource Accounting.

Selection

Stimulation

Adaptation

Responsibility
Of
HRM
Evaluation Maintenance

Motivation Development

HUMAN RESOURCE DEVELOPMENT:

Human Resource Development assumes significance in view of the fast

changing organizational environments and need of the organization to adopt new

techniques in order to respond to the environment changes.

The Concept of Human Resource Development:

The concept of HRD was formally introduced by Leonard Nadler in 1969 in a

Conference organized by the American Society for Training and Development.

Leonard Nadler defines HRD as,” those learning experiences which are organized, for a

specific time, and designed to bring about the possibility of behavioral change”.

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 Among the Indian authors T. Venkateswara Rao worked extensively on HRD.
He defined HRD in the organizational context as, “a process by which the employees of
an organization are helped in a continuous.

HRD from organizational point of view is a process in which the employees of

an organization are helped/motivated to acquire and develop technical, managerial and

behavioral knowledge skills and abilities, and mould the value, beliefs, attitude

necessary to perform present and future roles by realizing highest human potential with

a view to contribute positively to the organizational, group, individual and social goals.

Functions of HRD Managers:

1. Role Analysis.

2. Human Resource Planning.

3. Recruitment.

4. Selection.

5. Placement.

6. Induction and Orientation.

7. Performance Appraisal.

8. Training.

9. Management Development

10. Career planning and Development.

11. Organizational Development.

12. Compensation.

13. Social and Cultural Programmers.

14. Workers’ Participation in Management.

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15. Quality Circles.

16. Employee Counseling.

17. Team work.

18. Communication policies.

19. Monetary Rewards.

20. Non-Monetary Rewards.

21. Employee Benefits.

HRM SUB-SYSTEM

FINANC
MR
KT
G

HRM

SYSTEM
PR
OD
’N

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1) ENVIRONMENT CHALLENGES
• Rapid change
• Rise of the interest
• Globalization
• Workforce diversity

2) ORGANIZATIONAL DIVERSITY
• Competitive position
• Down sizing
• Decentralization
• Restructuring
• Self managed work teams
• Small business
• Organizational culture
• Technology, Outsourcing

3) INDIVIDUAL CHALLENGES

• Job Insecurity
• Matching
• People and Organization
• Ethical dilemmas & Social Responsibility
• Productivity

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 • Empowerment and Bran drain

REVIEW OF LITERATURE
The history of Performance Appraisal is quite brief. Its in the early 20th century
can be traced to Taylor’s pioneering Time and Motion studies. As a distinct and formal
management procedure used in the evaluation of work performance, appraisal really
dates from the time of Second World War – not more than 60 years ago. Yet in a
broader sense, the practice of appraisal is a very ancient art.

There is, says DULEWICZ (1989),a basic human tendency to make judgements
about those one is working with, as well as about oneself.” Appraisal, it seems, is both
inevitable and universal. In the absence of a carefully structured system of appraisal,
people will tend to judge the work performance of others, including subordinates,
naturally, informally and arbitrarily. The human inclination to judge can create serious
motivational, ethical and legal problems in the workplace. Without a structured
appraisal system, there is little chance of ensuring that the judgments made will be
lawful, fair, defensible and accurate.

Performance appraisal systems began as simple methods of income

justification. That is, appraisal was used to decide whether or not the salary or wage of
an individual employee was justified. The process was firmly linked to material
outcomes. If an employee's performance was found to be less than ideal, a cut in pay
would follow. On the other hand, if their performance was better than the supervisor
expected, a pay rise was in order.

Sometimes this basic system succeeded in getting the results that were intended;
but more often than not, it failed. Pay rates were important, yes; but they were not the
only element that had an impact on employee performance. It was found that other
issues, such as morale and self-esteem, could also have a major influence. As a result,
the traditional emphasis on reward outcomes was progressively rejected.

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 In the 1950s in the United States, the potential usefulness of appraisal as tool for
motivation and development was gradually recognized. The general model of
performance appraisal, as it is known today, began from that time.

MODERN APPRAISAL:

Performance appraisal may be defined as a structured formal interaction

between a subordinate and supervisor, that usually takes the form of a periodic
interview (annual or semi-annual), in which the work performance of the subordinate is
examined and discussed, with a view to identifying weaknesses and strengths as well as
opportunities for improvement and skills development.

In many organizations - but not all - appraisal results are used, either directly or
indirectly, to help determine reward outcomes. That is, the appraisal results are used to
identify the better performing employees who should get the majority of available merit
pay increases, bonuses, and promotions.
By the same token, appraisal results are used to identify the poorer performers who
may require some form of counseling, or in extreme cases, demotion, dismissal or
decreases in pay. (Organizations need to be aware of laws in their country that might
restrict their capacity to dismiss employees or decrease pay.)
Controversy:

Few issues in management stir up more controversy than performance appraisal.

There are many reputable sources - researchers, management commentators, and
psychometricians - who have expressed doubts about the validity and reliability of the
performance appraisal process. Some have even suggested that the process is so
inherently flawed that it may be impossible to perfect it. At the other extreme, there are
many strong advocates of Performance Appraisal. Some view it as potentially "... the
most crucial aspect of organizational life"
- LAWRIE (1990)

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Link to Rewards:

Research (BANNISTOR & BALKIN, 1990) has reported that appraises seem
to have greater acceptance of the appraisal process, and feel more satisfied with it,
when the process is directly linked to rewards. Such findings are a serious challenge to
those who feel that appraisal results and reward outcomes must be strictly isolated from
each other.

There is also a group who argues that the evaluation of employees for reward
purposes, and frank communication with them about their performance, are part of the
basic responsibilities of management. The practice of not discussing reward issues
while appraising performance is, say critics, based on inconsistent and muddled ideas
motivation.

INTRODUCTION OF PERFORMANCE APPRAISAL

DEFINITIONS:

“Performance Appraisal is the process of determining from how well some

one is performing in his or her job it involves measuring performance and
comparing it with an established standard”.
-JOHN PEARCE AND RICHARD ROBINSON
“Performance appraisal is a method of evaluating the behavior of the
employees in the work spot, normally including both the quantitative and qualitative
aspects of the job performance”.
-V.S.P.RAO

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A FORMAL DEFINITION OF PERFORMANCE APPRAISAL:

“The performance appraisal is the process of evaluating the performance

and qualification of the employees in terms of the requirements of the job for which
he is employed, for the purpose of administration including placement, selection for
promotion, providing financial rewards and other action which require differential
treatment among the members of group as distinguished from actions affecting all
members equally”.

MEANING OF PERFORMANCE APPRAISAL:

Performance appraisal is a method of evaluating the behavior of employees in

the work spot, normally including both the quantitative and qualitative aspects of job
performance. Performance here refers to the degree of accomplishment of the tasks
that make up an individuals job. It indicates how will an individuals is fulfilling the
job demands. Often the term is confused with effort, but performance is always
measured in terms of results and efforts.

PURPOSES OF PERFORMANCE APPRAISAL:

Performance appraisal aims at attaining the different purposes. They are:

• To create and maintain a satisfactory level of performance.
• To contribute to the employee growth and development through
training, self and management development programs.
• To help the superiors to have a proper understanding about their
subordinates.
• To guide the job changes with the help to continuous ranking.
• To facilitate fair and equitable compensation based on
performance.

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 • To provide information for making decisions regarding lay off,
retrenchment etc.

SCOPE OF PERFORMANCE APPRAISAL:

The world today is a world of revolutionary changes. We are on the edge of

21st century. It gives us a chance to scan the 20th century and foresee the 21st.In the
next few years the world will be witnessing a mega transformation of global
economy. India has also been affected by this change. New challenges in various
fields are being accepted.

Innovation in the true sense is to be perceived and understood. In the 19th

century it was the industrial revolution, which promised India a better future, but
now it is the role of the information technology, which decides the future.

The stride in industrialization in the 20th century has been a remarkable

future with various changes in the working and managing styles of the industries.
The advent of the information technology along with the rapid industrialization in
India demands a highly motivated, educated, skilled and goal oriented work force.
Performance has become the watchword in today’s industrial scene.

OBJECTIVES OF PERFORMANCE APPRAISAL:

The objective of performance appraisal scheme must relate directly to the

business and growth needs of units of organization as a whole.
The following are some impotent objectives of an appraisal scheme:
• Providing information for succession and resource planning.
• Providing a base for improved commutation between boss and subordinates.
• Identifying and recording performance weaknesses.
• Providing a basis for analysis of performance and identifying the required
standards and improvement.
• Identifying potential.

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 • Mutual feedback between boss and subordinate.

COMPONENTS OF APPRAISAL EVALUATION:

A performance appraisal evaluation may be conducted in an organization due to

many reasons such as
• Counseling
• Promotion
• Research
• Salary
• Administration

So it is very necessary to being by stating very clearly the objectives of the evaluation
program. Having done this, the personnel evaluation system should address the
questions who, what, where, how, of performance appraisal.

“WHO OF THE APPRAISAL”?

The appraisal can be accomplished by one or more individuals involving a

combination of immediate supervisor, other managers acquainted with assesses work, a
higher level manager, a personnel manager, the assesses peers, the assesses himself and
the assesses sub ordinates.
Sometimes self evaluation is also employed for evaluating performance. Self
rating emphasizes human relations, while superiors focus on technical knowledge and
initiative. But this approach had its disadvantages i.e., the individual may rate himself
excessively high that it would be if I his superior rated him. Because of this fairly
consistent upward bias in self-appraisals, the best thing would be to use these appraisals
for counseling and developing sub ordinates. They are not useful for making salary and
promotion decisions.
Many companies use rating committees to evaluate employees. These
committees consist of supervisors, peers and subordinates. Everyone on the committee
is a person who is able to intelligently evaluate some aspect of the employee’s

26
performance. Many discrepancies in the ratings may occur when evaluations are by
individuals.

“WHAT” OF THE APPRAISAL ?

The “what” of the performance appraisal, consist in appraising non-supervisory

employees for their current performance and the managers of future potential and it
also includes evaluation of human traits.

“WHY OF THE APPRAISL”?

The “why” of an appraisal is concerned with?

• Creating and maintaining a satisfactory level of performance of employees in
their present job.
• Highlighting employee needs and opportunities for personal growth and
development.
• Aiding in decision making for promotions, transfers, lay offs and discharges.
• Promoting understanding between the supervisor and the subordinates.
• Providing useful criteria for determining the validity of selection and training
methods and techniques and forming, concrete measures for attracting
individuals of higher caliber to the enterprise.

“WHEN” OF THE APPRAISAL?

The “when” answer the query of appraisal? It has been suggested that formal
counseling should occur continuously. The manager should discuss and employees
work as soon as possible after he has judged it. He should use good work to provide
positive reinforcement and use poor work as a basis for training.
In most organization employees are formally evaluated once a year, in others
twice a year. New employees are rated more frequently than the older ones. The ideal
thing is that each employees should be rated three months there after being assigned to
a job, after six months on the job and every six months there after. The time pf rating
should not coincide with the time salary reviews, for if the two occur together

27
constructive evaluation and consideration of self-development will probably take
second place to the pressures of pay.

“WHERE” OF THE APPRAISAL?

The “where” indicates the location where an employee may be evaluated? It is

usually done at the place of work of office of the supervisor.
Informal appraisal may take place anywhere and everywhere, both on the job in
work situations and off the job.

“HOW” OF THE APPRAISAL

Under “how”, the company must decide what different methods are available
and which of these may use for performance appraisal. On the basis of the comparative
advantages, and disadvantages it is decided which method would suit purpose best.

28
 PROCESS OF PERFORMANCE APPRAISAL

II
I
Communicatin
Creating
g the
performance
performance
standards
standards

VI III
Taking Measuring
corrective actual
action performance

IV
V Comparing
Communicatin actual and
g the appraisal standard
performance

29
 METHODS OF PERFORMANCE APPRAISAL

TRADITIONAL METHODS
1. Graphic Rating Scale MODERN METHODS
2. Ranking Method
1. Behaviorally Anchored
3. Paired Comparison
Rating Scales
Method 2. Assessment Center
4. Forced Distribution Method 3. Human Resource
5. Check List Method Accounting
 Simple Checklist 4. Management by Objectives
 Weighted checklist 5. Psychological Appraisals
6.3600 APPRAISAL
 Critical Incident Method
 Forced choice method
6. Essay/ Free form Appraisal
7. Group Appraisal
8. Confidential Reports

TRADITIONAL METHODS
1) Graphical rating scale:
Graphic Rating Scales compare individual performances to an absolute
standard. In this method, judgments about performance are recorded on a scale.
This is the oldest and widely used technique. This method is also known as linear
rating or simple rating scale. The appraisers are supplied with printed forms, one for
each employee. These forms contain a number of objectives, behavior and trait
based qualities and characters to be rated like quality and volume of work, job
knowledge, dependability, initiative, attitude, etc., In the case of workers and
analytical ability, creative ability, initiative, leadership qualities, emotional stability
in the case of managerial personnel.

30
 These forms contain rating of scale. Rating scales are of two types, viz.,
continuous rating scale and discontinuous rating scale. In continuous order like 0, 1,
2, 3, 4&5 and in discontinuous scale the appraiser assigns the points to each degree.
The points given by the rater know performances regarding each character are
added up to find out the overall performance. Employees are ranked basis of total
points assigned to each one of them.
One reason for the popularity of the rating scales is its simplicity, which
permits many employees to be quickly evaluated. Such scales have relatively low
design cost and high incase of administration. They can easily pin point significant
dimensions of the job. The major drawback to these scales is subjectivity and low
reliability. Another limitation is that the descriptive words often used in such scales
may have different meanings to different raters.

2) Ranking Method:-

Under this method, the employees are ranked from best to worst on some
characteristics. The rater first finds the employees with the highest performance and
the employees with the lowest performance in that particular job category and rates
the former as the best and latter as the poorest. Then the rater selects the next
highest and next lowest and so on until he rates all the employees in that group.
Ranking can be relatively easy and inexpensive, but its relativity and validity may
be open to doubt it may be affected by rater bias or varying performance standards.
Ranking also means that somebody would also be in the back bench. It is possible that
the low ranked individual in one group will turn out to be superstar in another group.
One important limitation of the ranking method is that the size of the
difference between individuals is not well defined. For instance, there may be little
difference in performance between individual’s ranked second and third, but big
difference between those ranked third and fourth.

Column I (Best)
1) . . . . . . . . . . . . . . . .
2) . . . . . . . . . . . . . . . .

31
 3) . . . . . . . . . . . . . . . .
4) . . . . . . . . . . . . . . . .
5) . . . . . . . . . . . . . . . .

Column II (Worst)
6) . . . . . . . . . . . . . . . .
7) . . . . . . . . . . . .
8) . . . . . . . . . . . . . .
9) . . . . . . . . . . . . . .
10) . . . . . . . . . . . . . .

3) Paired Comparison Method:-

This method is relatively simple. Under this method the appraiser ranks the
employees by comparing one employee with all other employees in the group, one
at a time. This method results in each employee being given a positive comparison
total and a certain percentage of total positive evaluation.
Paired comparison doesn’t force distribution of employees in each
department. For instance, if a department has two outstanding employees and six
average employees and paired comparison is correctly utilized, then those two
employees will get a much higher percentage of positive comparison than the other
six. Paired comparison method could be employed fairly, easily when the number
of employees is less. The number of comparisons required equals N (N-1)/2.This

32
 means that where the number is fairly large the technique may be time consuming.
Another limitation of this technique is that employees are simply compared to each
other on total performance rather than specific job criteria.

A B C D E
A - A A A A
B - - C D E
C - - - C E
D - - - - E
E - - - - -

To compute employee’s positive evaluations:

Number of positive evaluations x 100 = employees % superior evaluation.
Total number of evaluations
Employee A Employee B Employee C Employee D Employee E
4/4 x100=100% 0/4x100=0% 2/4x100=50% 1/4x100=25% 3/4x100=75%

4) Forced Distribution method:-

The rater may rate his employees at the higher or at the lower end of the
scale under the earlier methods. Forced distribution method is developed to prevent
the raters from rating too high or too low. Under this method, the rater after
assigning the points to the performance of each employee has to distribute his
ratings in a pattern to conform to normal frequency distribution.

33
 Thus, similar to the ranking technique, forced distribution requires the raters
to spread their employee evaluations in a prescribed distribution. This method
eliminates central tendency and leniency biases. However, in this method
employees are placed in certain ranked categories but not ranked within the
categories. Quite often work groups do not reflect a normal distribution of
individual performance. This method is based on the rather questionable
assumption that all groups of employees will have the same distribution of
excellent, average and poor performers. If one department has all outstanding
employees, the supervisor would find it extremely difficult to decide who should be
placed in the lower categories. Difficulties can also arise when the rater must
explain to the employee why he was placed in one grouping and others were placed
in one grouping and others were placed in higher groupings.

5) Checklist Methods:-
The checklist is a rating technique in which the supervisor is given a list of
statements or words asked to check statements representing the characteristics and
performance of each employee. There are three types of checklist methods, viz,
simple checklist, weighted checklist and forced choice method.

34
I) Simple Checklist Method:
The checklist consists of large number of statements concerning employee
behavior. The rater checks to indicate if the behavior of employees is positive or
negative to each statement. Employee performance is rated on the basis of number
of positive checks. The negative checks are not considered in this method. A
difficulty often arises because the statements may appear to be virtually identical in
describing the employee. The words or statements may have different meanings to
different raters.

II) Weighted checklist method:

This method involves weighting different items in the checklist, having a series
of statements about an individual, to indicate that some or more important than
others. The rater is expected to look into the questions relating to the employees
behavior, the attached rating scale and tick those traits that closely describe the
employee behavior. Often the weights are not given to the supervisors who
complete the appraisal process, but are computed and tabulated by someone else
such as a member of the personnel unit. In this method the performance ratings of
the employee are multiplied by the weights of the statements and the coefficients
are added up. The cumulative co-efficient is the weighted performance score of the
employee. Weighted performance score is compared with the overall assessment
standards in order to find out the overall performance of the employee. The
weighted checklist, however, is expensive to design, since checklist for each
different job in the organization must be produced. This may prove time consuming
also in the end. Though the weighted checklist method is evaluative as well as
developmental, it has the basic problem of the evaluator not knowing the items
which contribute mostly of successful performance.

III) Forced Choice Method:-

This method was developed at the close of World War II. Under this method, a
large number of statements in groups are prepared. Each group consists of four

35
descriptive statements concerning employee behavior. Two statements are most
descriptive and two are least descriptive of each tetrad. Sometimes there may be
five statements in each group out of which one would be neutral. The actual
weightages of the statements are kept secret. The appraiser is asked to select one
statement that mostly describes employee’s behavior out of the two favorable
statements and one statement from the two unfavorable statements. The items are
usually a mixture of positive and negative statements. The intent is to eliminate or
greatly reduce the rater’s personal bias, specially the tendency to assign all high or
low ratings. The items are designed to discriminate effective from ineffective
workers as well as reflect valuable personal qualities.

IV) Critical Incident Method:-

Employees are rated discontinuously, i.e., once in a year or six months
under the earlier methods. The performance rated may not reflect real and overall
performance as the rater would be serious about appraisal just two or three weeks
before the appraisal. Hence a continuous appraisal method, i.e., critical incident
method has been developed. Under this method, supervisor continuously records
the critical incidents of the employee performance or behavior relating to all
characteristics in a specially designed note book. The supervisor rates the
performance of his subordinates on the basis of notes taken by him.
Since the critical incident method does not necessarily have to be a separate
rating system, it can be fruitfully employed as documentation of the reasons why an
employee was rated in a certain way.

The critical incident method has the advantage of being objective because
the rater considers the records of performance rather than the subjective points of
opinion, for example, mood, emotional balance, relationship between superior and
subordinate. This certainly helps in reducing bias in the evaluation. However, the
system is not without drawbacks. First, what constitutes a critical incident is not
defined in the same manner by all raters. Next, recording events continually over a
period of time may be resented by the raters.

36
6) Essay / Free Appraisal:-
This method requires the manager to write a short essay describing each
employee’s performance during the rating period. This format emphasizes
evaluation of overall performance, based on strengths/weaknesses of employee
performance rather than specific job dimensions. By asking supervisors to
enumerate specific examples of employee behavior, the essay technique minimizes
supervisory bias and halo effect.

The time involved in writing separate essays about each employee can be
formidable. Essays are not amenable for evaluation and analysis; 50 essays
describing different employee’s performance cannot be tied to merit increases and
promotion possibilities because there is no common standard. Another inherent
limitation of this method is that the evaluators may have unequal skills in writing
the essays. A skillful writer can present a more dramatic case about an employee
than an awkward writer or supervisor. Thus, the quality of the ratings depends,
actually on employee performance, but on the writing ability of the rater.

7) Group Appraisal:-
Under this method, an employee is appraised by group of appraisers.
This group consists of the immediate supervisor of the employee, to other
supervisors who have close contact with the employees work, manager or head of
the department and consultants. The head of the department or manager may be the
chairman of the group and the immediate supervisor enlightens other members
about the job characters, demands, standards of performance etc. This method is
widely used for purposes of promotion, demotion and retrenchment appraisal.

8) Confidential Reports:-

Assessing the employee’s performance confidentially is a traditional method

of performance appraisal. Under this method, superior appraises the performance of
his subordinates based on his observations, judgment and intuitions. The superior

37
keeps his judgment and report confidentially. In other words the superior does not
allow the employee to know the report and his performance. Superior writes the
report about his subordinates strength, weaknesses, intelligence, attitude to work,
sincerity, commitment, punctuality, attendance, conduct, character, friendliness, etc.

Though confidential report is a traditional method, most of the public sector

organizations still follow this method in appraising the employees’ performance.
This method suffers from a number of limitations.

MODERN METHODS

1) Behaviorally Anchored Rating Scales (BARS):-

The behaviorally anchored rating method (BARS) method combines
elements of the traditional rating scales and critical incidents methods. Using
BARS, job behaviours from critical incident- effective and ineffective behaviours
are described more objectively. The method employs individuals who are familiar
with a particular job to identify its major components. They then rank and validate
specific behaviours for each of the components.

How to construct BARS?

Developing a BARS follow a general format which combines techniques
employed in the critical incident method and weighted checklist ratings scales.
Emphasis is pinpointed on pooling the thinking of people who will use the scales as
both evaluators and evaluees.
Step I: Collect Critical Incidents: People with knowledge of the job to be
probed, such as job holders and supervisors, describe specific examples of effective
and ineffective behaviour related to job performance.
Step II: Identify Performance Dimensions: The people assigned the task
of developing the instrument cluster the incidents into a small set of key
performance dimensions. Generally between five and ten dimensions account for

38
most of the performance. Examples of performance dimensions include technical
competence, relationships with customer handling or paperwork, and meeting day
to day deadlines. While developing varying levels of performance for each
dimension, specific examples of behaviour should be used, this could later be
scaled in terms of good, average or below average performance.
Step III: Reclassification of Incidents: Another group of participation who
are knowledgeable about the job instructed to retranslate or reclassify the critical
incidents generated previously. They are given the definition of job dimension and
told to assign each critical incident to the dimension that it best describes.
Step IV: Assigning Scale Values To The Incidents: Each incident is then
rated on a one to nine scale with respect to have well it represents performance on
appropriate dimension. A rating of one represents ineffective performance; the top
scale value indicates very effective performance. The second group of participant’s
usually assigns the scale values. Means and standards deviations are then calculated
for the scale values assigned to each incident. Typically incidents that have standard
deviations of 1.50 or less are retained.
Step V: Producing the Final Instruments: About six or seven incidents
for each performance dimension all having met both the retranslation and standard
deviation criteria will be used as behavioural anchors. The final BARS instrument
consists of a series of vertical scales anchored by the final incidents. Each incident
is positioned on the scale according to it mean value.
Because the above process typically requires considerable employee
participation, its acceptance by both supervisors and their subordinate may be
greater. Proponents of BARS also claim that such a system differentiates among
behavior, performance and results, and consequently is able to provide a basis for
setting developmental goals for the employee. Because it is job specific and
identifies observable and measurable behavior, it is more reliable and valid method
for performance appraisal.
Researchers, after surveying several studies on BARS, concluded that
“despite the initiative appeal of BARS, findings from research have not been
encouraging”. It has not proved to be superior to other methods in overcoming rater
errors or in achieving psychometric soundness. A specific deficiency is that the
behaviors used are actively oriented rather than result oriented. This creates a

39
potential problem for supervisor doing the evaluation, who may be forced to deal
with the employees who are performing the activity but not accomplishing the
desired goals. Further, it is time consuming and extensive to create BARS.

2) Assessment Centre:-
This method of appraising was first applied in German Army in 1930. Later
business and industrial houses started using this method. This is not a technique of
performance appraisal by itself. In fact it is a system or organization, where
assessment of several individuals is done by various experts by using various
techniques.
In this approach individuals from various departments are brought together
to spend two or three days working on individual or group assignment similar to the
ones they would be handling when promoted. Observers rank the performance of
each and every participant in order of merit. Since assessment centers are meant for
evaluating the potential of candidates to be considered for promotion, training or
development, they offer an excellent means for conducting evaluation process in an
objective way. All assesses get an opportunity to show their talents and capabilities
and secure promotion based on merit. Since evaluators know the position
requirements intimately and are trained to perform the evaluation process in an
objective manner, the performance ratings may find favor with majority of the
employees. A considerable amount of research evidence is available to support the
contention that people chosen by this method through better than those chosen by
other methods.

3) Human Resource Accounting:-

It deals with cost and contribution of human resources to organization. Cost

of the employee includes cost of man power planning, recruitment, selection,
induction, placement, training, development, etc. Employee contribution is the
money value of the employee service which can be measured by labour
productivity or value added by human resources.

40
 Cost of human resources can be taken as standard. Employee performance
can be measured in terms of employee contribution to the organization. Employee
performance can be taken as positive when contribution is more than the cost and
performance can be viewed as negative if cost is more than contribution. Positive
performance can be measured in terms of percentage of excess of employee
contribution over the cost of employee. Similarly, negative performance can be
measured in terms of percentage of deficit in employee contribution over the cost of
employee. This % can be ranked to zero level.
This technique has not developed and still it is in transition stage.

4) Management By Objectives(MOB):-

This method is given by “Peter Ducker”, establishes results which workers

or managers expected, by mutual agreement with their supervisors, to achieve
during a particular period of time. Ideally, MBO takes into account the needs and
goals of the organization, as well as those of the individual.
Four steps depict the method:
• Setting performance goals or targets.
• Recording performance against goals.
• Counseling on progress against goals.
• Reviewing final results against goals.

5) Psychological appraisal:

Psychological appraisals are conducted to assess the employee potential.

Psychological appraisals consists of (a)in-depth interviews,(b)psychological tests
(c)consultants and discussions with the employee,(d)discussions with the superiors,
sub-ordinates and peers, and (e)review of other evaluations.
Evaluation is conducted in the areas of – (a)employees intellectual abilities,
(b)emotional stability, (c)motivational responses, (d)reasoning and analytical

41
abilities, (e)interpretation and judgment skills, (f)sociability, (g)employees ability to
comprehend the events and ability to foresee the future.
The psychological appraisals results are useful for decision-making about
(1) employee placement (2) career planning and development, and (3) training and
development.

6) 360O FEEDBACK:

SUPERVISORS:
Supervisors include superiors of the employee, other superiors having
knowledge about the work of the employee and department head or manager.
General practice is that immediate superiors appraise the performance which in turn
is reviewed by the departmental head / manager. This is because supervisors are
responsible for managing their subordinates and they have the opportunity to
observe, direct and control the subordinate continuously. Moreover, they are
accountable for the successful performance of their subordinates.

PEERS:
Peer appraisal may be responsible if the work group is stable over a
reasonably long period of time and performs tasks that require interaction.
However, little research has been conducted to determine how peers establish
standards for evaluating others or the overall effect of peer appraisal on the group’s
attitude.

SUBORBINATES:

The concept of having superiors rated by subordinates is being used in most

organizations today, especially in developed countries. Such a novel method can be
useful in other organizational settings too provided the relationships between and
subordinates are cordial. Subordinates’ ratings in such cases can be quite useful in
identifying competent superiors.

42
43
44
 If individuals understand the objectives they are expected to achieve and the

standards by which they are to be evaluated, they are to a great extent in the best

position to appraise their own performance. Also, since employee development

means self development, employees who appraise their own performance may

become highly motivated.

The way in identifying key practices that make for a successful system such

as accountability, review by superiors, periodic feedback, and having a flexible

45
system. Preliminary research on the use of multiple raters in a 360o feedback

system appears to be superior in comparison to the traditional methods of

performance appraisal which relied almost exclusively on the employee’s

supervisor. The 360o system uses not only supervisor but also peers, self rating by

the employee, subordinates and in some instances customers or clients, outside

consultants and even family and friends. In a sense the system draws on virtually

anyone who has familiarity with the employee in regards to his or her job

performance.

This multi-rater are reliable, valid, well-received by employees, easy to use

and job relevant. Although these data are encouraging, there is still little empirical

data about 360 degree feedback’s effectiveness, making it a prime candidate for

additional studies.

It is found through a meta-analytic study that each of the various rater

training programs has at least a moderate effect on improving performance

appraisal ratings, reducing rating errors and/ or improving rating accuracy. Of the

training programs, framed-of-reference (FOR) training emerges as the most

promising.

The methodology of calibrating raters so they agree on what behaviors and

characteristics comprise effective performance in FOR. It also provides raters with

common performance standard (references) such that each rater understands what

constitutes good and bad performance on each relevant job dimension. It provides

further guidelines to enhance greater accuracy across dimensions.

46
 CHAPTER-III

1. PROFILE OF CARE HOSPITALS

2. PERFORMANCE APPRAISAL IN CARE

HOSPITALS

1. PROFILE OF CARE HOSPITALS

47
 CARE foundation is a registered non profit society with the mandate of making

quality health care affordable and accessible to all through appropriate use of

technology. The foundation has been established by a group of medical scientists and

technologies with the stated mission of making advanced comprehensive healthcare

affordable and accessible to all. The foundation is a non- profit organization and is

registered as a society under Andhra Pradesh Society Act 1365 Falsie.

The patron of the foundation is renowned cardiologist Padmashri Dr

B.SomaRaju and the chairman of the foundation is Prof.P.krishnam Raju. The

foundation implements its mission of making advanced technology based care

affordable and accessible to common man under a three dimensional programme.

• Conducting research & imparting specialized education,

• Developing cost effective medical products, and

• Providing health care to people from the economically weaker sections of

the society and those living in rural areas.

In 1997, when Dr.B.Soma Raju and Dr.D.Prasada Rao led a team of medical

professionals to set up the first CARE Hospital, it signaled the dawn of a new era in

medical care .At the heart of this movement was a burning desire to practice medicine

with compassion, concern and care, with a single minded objective the recovery of the

patient. Today, with Multi-Specialty Hospital across the state, and a reputation for

humanization and selfless service of the highest order, CARE Hospital enjoys an

unbelievable amount of goodwill. A million smiles will bear testimony to that.

48
 The organization was incorporated with the main objective of running all kinds

of hospitals, dispensaries ,nursing homes, clinical laboratories carrying out medical

research, education and train medical students ,nursing professionals, hospital

administrator, grant diplomas or recognitions as the company may deem fit and to

render professional consultancy and advice to any individual firm, company, Govt etc.

in the fields of research and development relating to medical, pharmaceutical and

chemical industries.

BOARD OF DIRECTORS

• Dr. B. Soma Raju, Chairman and Managing Director

• Dr. N. Krishna Reddy, Chief Executive Officer

• Mr. D. Suresh

• Dr. A. Rajgopala Raju, Whole-time Director

• Mr. C. Rama Krishna

• Mr. Rajeev Amrish Agarwal

• Mr. John Michael Lind

• Dr. G.N.Rao, Director

COMPANY SECRETARY:

• Mr. N.Anjaneyulu

49
 VISIONARIES

1. Dr. B. Soma Raju

Chairman & Managing Director

• Sri Dr B Soma Raju, MD, DM in Cardiology and renowned cardiologist in India

and Abroad.
• He headed the department of Cardiology at NIMS during which time he brought
modern Cardiac care into the country.
• He developed indigenous stent along with Dr. Abdul Kalam, President of India
(Named Kalam-Raju Stent)
• He was honored by Government of India with Padmashree Award towards his
outstanding contribution in the field of Medicine in the year 2001.
• He is the Chairman & Managing Director of QCIL

2. Dr. N. Krishna Reddy

Director& CEO

• MD Internal Medicine from PGIMER, Chandigarh.

• DM-Cardiology from GB Pant Hospital, New Delhi.

• Asst. Professor at NIMS – introduced Tran esophageal echocardiography

and Dobutamine Echocardiography.

• A key team member in development & evaluation of indigenous coronary

stents, beginning with “Kalam-Raju” stent.

• A principal investigator for 5 ongoing National Trials

• The team leader for ongoing development of drug-eluding stents.

• He is a Consultant Cardiologist and the Director & Chief Executive Officer

of QCIL

GROWTH

50
 The CARE foundation was established with the noble objective of providing

needed research in cardiology, to achieve indigenization of the fast growing range of

hard ware products, devices and disposables in the field to provide excellent academics

at different levels and to strive to bring down the ever bargaining cost of cardiac health

care under the able leadership of its founder, chairman DR.B.SOMA RAJU. The care

foundation has relentlessly pursued those objectives and can now look back with some

satisfaction on the work done towards this end in the first few years of its experience.

Quality Care India Limited (QCIL) was an inevitable off shoot of the zeal to

achieve the above mentioned objective. And it has the purpose of giving a practical

shape to this pursuit. The care hospital Nampally, Hyderabad is the first of the project

of Quality Care India limited established in July 1997 in leased premises ,the

Hospital needs little to be said in its praise as the direction it has then and its

achievements are now very well known, the immense credibility it has established is

just a reflection of this. DR.B.SOMA RAJU is himself, the chairman of Quality Care

India limited and the CARE hospital and DR.B.PRASAD RAO, the vice chairman, the

governing board of the hospital has Dr .B. Soma Raju, and Mr. D. Suresh as its

directors.

The CARE hospitals stated with 275 beds .It has never shrinked from its

responsibility of looking after the economically deprived sections of the population. It

is to the credit of the hospital that nearly 70% of accommodation is allocated under

general ward category where the tariffs are highly subsidized.

The hospital has so far been an exclusive cardiac care hospital with few

supporting departments such as internal medicine and Pulmonology; it has on its panel

specialists from all the branches who visit on call.

51
 The hospital runs on extremely busy intensive coronary CARE unit attending to

all cardiac emergencies .The unit is staffed with an in house cardiologist around the

clock, supported by junior doctors, an anesthetist, a large number of technicians and

nursing staff and others. Laboratory services are available continuously. Emergency

services such as primary angioplasty for a person with developing heart attack are

performed at all times of day or night.

CARE hospitals felt the need to introduce other specialties that could serve the

population with the same professional competence and commitment as cardiac team

with this in view neurology and other neurology services were being started at CARE

NAMPALLY from October 2000.PROF J.M.K MURTHY who is a well known

neurologist and acclaimed expert on seizure disorders is heading the neurology unit.

Continuing on the path to achieve the objective the group has established a super

specialty hospital at BANJARA HILLS, HYDERABAD. This has brought under one

roof highly qualified, competent and dedicated professionals who would provide the

care and service to people. CARE foundation started a research and development

institution, cardio vascular devices and disposables to develop cardiac devices and

disposables.

THE CARE MODEL

They operate on physician driven model. This means that all the main

constituents of the CARE movement ,the promoters, administrators and service

providers are physician .The center of the CARE model is the patient and the

overriding motive of all CARE’s activities is to provide quality medical care at an

affordable cost. Technology training and team work from the every core of the CARE

model which also emphasizes a comprehensive and continuous education and training

52
of every individual involved in the patient care. Every effort will be taken to ensure that

their growth is decided by the patients needs and not one decided by their corporate

requirements.

ABOUT CARE LOGO

• The base of the logo represents a level field provided to everybody.

• The column consisting of beam represents the multi-disciplinary teams of

CARE Hospitals.

• The person on the pedestal is a professional like a physician/nurse/health care

professional supported by excellence.

• The person trying to climb the apex of the pedestal is a patient suffering from
illness or a student seeking knowledge and skills.

• The rectangular box refers to a well-defined framework within which the

hospital functions.

FUNDAMENTAL REASON FOR EXISTENCE

53
• To make quality medical care affordable and accessible considering quality,

cost, access.

• Timeless unchanging core values.

• Putting the patient first above ones own interest.

CORE PRINCIPLE

Putting the patient first; above our own interests.

MISSION
To provide the best and cost-effective care, accessible to every patient through integrated
clinical practice, education and research.

VISION
To evolve as a unique university-based health-centre where the quest for new knowledge
would continuously yield more effective and more compassionate care for all.

To nurture a new generation of professionals of life-long commitment, dedication,

knowledge, skills, wisdom and values.

To strive for public trust and maintain medicine’s humane and noble place amongst
professions.

To be globally competitive in healthcare and related businesses integrating local culture

and ethos.

MISSION

• The mission is more than just a statement; it’s the cornerstone of all efforts.
And, of course a constant reminder of their movement’s founding values.

• To provide quality medical care at an affordable price, delivered with

compassion, concern and care, through team spirit, training and technology.

54
• To develop a comprehensive healthcare delivery model that suits their
population.

• To develop ‘centers of excellence’ in various medical specialties.

• To evolve a holistic approach to healthcare by incorporating the best from

various forms of medicine.

VISION

To evolve as a unique university-based health-centre where the quest

for new knowledge would continuously yield more effective and more

compassionate care for all.

• To nurture a new generation of professionals of long –life commitment,

dedication, knowledge, skills, wisdom and values.

• To strive for public trust and maintain medicine’s humane and noble place

amongst professions.

• To be globally competitive in healthcare and related businesses integrating

local culture and ethos.

• To promote development of indigenous products and systems, adapting

appropriate technologies generating clinical skills and removing barriers before patients

accessing it through institutional partnership.

OBJECTIVES

55
• Upgrade its education and Research wing on par with the international
standards and consequently develop healthcare solutions for under developed
and developing areas.

• Register a phenomenal growth by adding 5000 beds in the next five years.

• Offer unique platform to various partners and collaborators, both national and
international, to innovate in healthcare delivery systems, coverage systems like
microfinance/ micro insurance, medical education and research.

• Develop healthcare solutions for underdeveloped and developing countries.

• To develop comprehensive healthcare delivery model that suits our population.

• To develop centers of excellence in medical specialties.

• To compromise the obsolete and seek excellence through effective and up-to-

date technology and service.

• Undertake clinical practice through high-end education and research.

• Create a web of PCD clinics, corporate health plans, and associates program to

leverage the use of technology and gain access to remote areas.

POLICIES

56
• Sensitivity to pain and suffering shall be accorded highest priority to every

employee.

• Same treatment for same illness, irrespective of ability to pay.

• Tests will be done only when medically necessary

• Selection of all employees shall be on the basis of merit.

• Compulsory continuous medical education to lab health care personnel.

• All departments shall be run by full time consultants.

• Round the clock availability of cardiologists, C.T. Surgeon’s neurologists, anesthetists,

labs and technicians.

VALUES AND PRINCIPLES

VALUES

Practice Practice medicine as an integrated team of compassionate,

physicians, scientists and allied health professionals.
Education Learn to serve through training and education of physicians,
nurses and allied health professionals.
Research Conduct basic and clinical research programs to improve patient
care and to benefit society.
Mutual Treat everyone with respect and dignity.
Respect
Commitment Continuously improve all processes that support patient care,
to Quality education and research.
Work Foster teamwork, personal responsibility, integrity, innovation,
Atmosphere trust and communication, and celebrate success.
Societal Support the society we live in and assist patients with limited
Commitment financial resources.
Finances Allocate resources within the context of a system rather than its
individual entities.

MILESTONES

57
• CARE Hospital, the Heart Institute established at Hyderabad-200 beds July 1997.

• 50 bed cardiac centre established in secunderabad –June 1998.

• 100 bed Heart Institute set up in Visakhapatnam -April 1999.

• CARE foundation got defense technology spin-off award from Prime Minister-August

1999.

• The Institute of Neuro-Sciences set up in Hyderabad-October 2000.

• The Institute of Medical Sciences with Multi-specialty services with 350 beds at

Banjara Hills (Hyderabad)-October 2000.

• Padmashri awarded to Dr.B.Soma Raju and DR.D.Prasada Rao, the founders of CARE-

January 2001.

• Bharat Ratna, Dr.APJ Abdul Kalam, inducted onto the board –May 2001.

• India’s first V-SAT based public–private Telemedicine system launched by chief

minister of AP-October 2001.

• Established `a Community Model Hospital at Amalapuram-Jan 2002.

• Established a Primary Health Care Model Hospital at Lakhavaram-March 2002.

• Established a 50 bedded Hospital at Vijayawada-Dec 2003.

CULTURE OF CARE

The best interest of their patient is the only interest they consider. They at

CARE, combine an emphasis on the pure science of medicine with a keen appreciation

for each person’s humanity. Their caring staff, advanced medical care, accessibility and

efficiency is what make them different from others –the preferred choice of the

international patient .Every employee devotes the necessary attention to ensure that

58
every patient’s visit to CARE is convenient and worthwhile. The culture at CARE

bears testimony to the fact that:

“They are dedicated to the needs of their patients .They serve with a special attitude,

special care so that all patients gain the maximum benefit from their visit to CARE.

“It uses a collaborative approach where each physician can call on the expertise

of medical specialists and sub specialists. This team work helps physicians arrive at an

accurate diagnosis and the most effective course of treatment. Each patient benefits

from the experience and skills of many physicians. CARE continues to offer superior

value with an efficient, streamlined approach to medical care that emphasizes accurate

diagnosis and effective treatments.

“It is patient centered organization and focus on one thing the needs of the

patient. The needs of the patient come first.

“It provides the best care to every patient through integrated clinical practice,

education and research.”

“Comprehensive evaluation with timely, efficient assessment and treatment.

Availability of the most advanced, innovative diagnostic and therapeutic technology

and techniques.”

“The CARE organization recognizes the importance of good communication

with the patient’s personal doctor. Upon the patient’s return home, CARE physicians

send all pertinent medical information to the home doctor to assist in continued good

care. It functions cooperatively to bring skilled, compassionate care to patients from

around the world.

MEDICAL SPECIALITIES IN CARE

59
SURGICAL:

● Cardio-Thoracic
● Dental
● ENT
● General, Gastrointestinal and Laparoscopic
● Gynecology
● Hand Surgery
● Neuro Surgery
● Surgical Oncology
● Ophthalmology
● Orthopedic Surgery & Trauma Services
● Urology
● Vascular Surgery

MEDICAL:

● Anesthesia
● Blood Bank
● Cardiology
● Dermatology
● Endocrinology
● Gastroenterology
● Internal Medicine / Coronary & Critical Care
● Life Style Clinic
● Nephrology
● Neurology
● Oncology
● Physiotherapy
● Psychiatry

DIAGNOSTICS:

60
● Cardiology
● Gastroenterology
● Neurology
● Nuclear Medicine
● Radiology (Image logy)

ORGANISATION STRUCTURE

PATIENT

Doctors and Nurses

Paramedics and House keepers

Departmental Manager

Support Manager

Directors
In structure, we see patients, are at high priority, at quality care the main criteria

is putting the patient first above ones own interest.” They are treated as Elite Group of

the organization.

61
 The next preference is given to doctors and nurses; they are the people who give

emotional support and satisfaction to the patients. The more comfort they give the more

satisfied is the patient, here the nurses play a very important and vital role, they look

after every aspect of the patient starting with their food to their medicines, for this they

have to be very patient, humble and pleasing.

The next comes Paramedics and House keeping, the more cleanliness the more

attractive the hospital, so the housekeeping people play a crucial role in attracting the

people to opt the hospital. Pharmacist is the one who delivers the prescribed medicines

given by the physician, the more pro active they are the more willingness to buy the

medicines from within the premises. Next comes the Departmental manager, who looks

after the departments, its functions and the procedures to be followed. He is the person
BOARD
who is responsible for all activities to be carried for attaining the objectives.

CHAIRMAN

CEO

HOSPITAL ADMINISTRATOR

GENERAL MANAGER

ORGANIZATIONAL HIERARCHY

62

REGULAR STAFF
 DEPUTY GENERAL MANAGER

MANAGER

ASSISTANT MANAGER

SUPERVISOR

HR-CAREER PROGRESSION AT CARE HOSPITALS

63

ASSISTANT MANAGER
 Ca
ORGANIZATION POLICIES

MANPOWER REQUIREMENT:

64
• To take specification for Job requirement in the prescribed format for all jobs
opening in the Organization.

• All the vacancies are displayed in the notice board for employees to apply. The
same is to facilitate equal opportunities for employees of Organization.

• All openings are intimated to employment exchange.

• All vacancies arise, either due to resignations or new openings, first option is
given to existing employees in the Organization and they will undergo for
selection based on their job opening.

• To competence requirement for all positions in the Organization the GM-HR

should consult with the HOD’S

SELECTION AND RECRUITMENT:

• The vacancies are identified in each Department and selection is made with the
profile of the person needed for filling the vacancy. The first option is given to
the existing employees.

• For all openings, the HR Department personnel conduct preliminary interview

and the ratings are given.

• Whenever fresher are recruited for job opening, selection process includes,
written test, wherein candidate is required to score 60% marks for further
Interviews and Selections.

• Short listed persons are called for Interviews by the Hospital Administrator for
suitable place and date.

65
 INDUCTION/ORIENTATION:

• Introduce the employee to the staff.

• Explain him the Organization History, Hierarchy, Grade structure
• Appraise him the rules and regulations of the organization
• Put him under training in Departments to understand the role of each
Department where he/she is going to work.
• Maintain induction training record.

PERFORMANCE APPRAISAL:

• The performance Appraisal is carried out once every year for all associates and

after the completion of one year for new recruits.

• Trainees will be assessed of their performance after completion of 3/6 months.

• After their potential appraisal they are recommended for promotion.

TRAINING:

• At least 20 managers undergo Management development training in a year.

• To maintain record related to competence, education, awareness, and training

for all associates.

• Induction, training is given for newly recruited personnel.

• On the job training is given to all staff depending upon recruitment.

FEED BACK:

After returning from the training the effectiveness of training is verified by the

HOD and forwarded to General Manager-HR for perusal of Manager.

66
 PERFORMANCE APPRAISAL SYSTEM IN CARE
HOSPITALS
1. Purpose:
To lay down policy guidelines for implementation of the Performance
Management System.
2. Scope:
This policy will be applicable to all associates of Care except trainees,
apprentices and contract staff.
3. Responsibility:
3.1 All HODs are responsible to ensure that the appraisals are completed on time.
3.2 HR Department will facilitate and monitor the process. The HR Department will
also acquaint the HODs/appraiser/ appraises about the Performance Management
System.
4. Accountability:
The Unit HR in charge under the overall supervision of the HA will be
accountable for the appropriate implementation of the Performance Management
System in the unit while the CHRD will responsible for its implementation at the
Corporate and for associates at the senior and middle levels of management. Queries on
matter of policy will be referred to Corporate HR for clarification.
5. Procedure:
5.1} Performance management is a method used to measure and improve effectiveness
of associates at the work place. It is a system composed of several activities including
goal setting, tracking changes, coaching, motivation and associate development.

5.2} The performance management cycle begins with goal setting. Performance is then
tracked against the associate’s goals and eventually appraised in a formal end of
appraisal period meeting. An informal mid appraisal period review will also be
held.The results of the formal appraisal will feed into the incentive/increment system.

5.3} It has been decided to adapt a Strategy Based Performance Management System.
The schematic representation of the system is at Annexure 1. The model will have the
following four phases :-

67
Performance Planning : At the beginning of the appraisal period the appraiser
and appraisee will get together for a performance planning meeting. In this session they
discuss as to what the associate will achieve during the appraisal period. The
objectives, Key Performance Indicators, the competency desired of the appraisee and
the individual developmental plans are recorded on the Performance Planning Form
and kept with the personal file of the associate that is maintained in the HR
Department.
Performance Execution.: Over the course of the appraisal period the associate
works to achieve the goals, objectives and key responsibilities. The appraiser coaches
and provides feedback as well as creates conditions that motivates and resolves
performance problems that arise. A semi-formal periodic review is held to review
performance and set corrections in order to enable the appraisee achieve the laid down
objectives.
Performance Assessment: This is the appraisal system wherein the
supervisor/appraiser has to fill out an Assessment Form. The Appraisal Forms and a
copy of the Performance Planning Forms will be sent by the HR Department to the
appraiser. . The completed appraisal form is reviewed by the supervisors senior (boss)
and submitted to the HR Dept who in turn will scrutinize the same for its correctness.
The performance assessment of the appraiser will be shown to the appraisee and signed
by both. However the remarks/assessment of the Reviewing Officer will not be shown
to the appraisee and will be kept confidential. This is a measure to bring in objectivity,
as also avoid a ‘ one man report ‘ as well as even out the inflationary trend that is
generally seen in appraisals that have to be shown to the appraisee. Appraisal forms of
HOD (Unit) will also be endorsed by the Corporate Head in the staff / departmental
channel of reporting.
Performance Review: The appraiser and the appraisee meet and discuss the
assessment. They will also set a date to hold performance planning discussion for
the next appraisal period, at which point performance appraisal starts anew.
6. Purpose of Performance Appraisal:
A performance appraisal serves the following purpose:-
6.1} Provides feed back to associates about their performance and encourages
enhanced performance

68
6.2} Determines who gets incentive and promotion
6.3} Counseling of poor performers
6.4} Determines training and development needs
6.5}Confirming that good hiring decisions are being made
6.6} Facilitates layoff and down sizing decisions.

7) Types of Appraisal Forms:

Depending upon the managerial level, separate types of Appraisal Forms will be
formulated by the Corporate HR Department and used for Senior Management, Mid
Level Management and Junior Managerial Cadre. At the Executive Level only an
Appraisal Card will be used for the assessment system.
8) Filing and Handling of Appraisal Forms:
The Appraisal Form is a privileged document. It should be treated with
confidentiality. The receipt/dispatch of the Forms should be done in a
secure/confidential envelope. The Form should finally get filed in the personal file of
the individual.
9) Criteria for initiation of Appraisal Forms:

The following will be the norms for initiation of the Appraisals

9.1} The appraisee should have served for at least 90 days under the appraiser. In case

he/she has not served for 90 days then the previous supervisor will be eligible to initiate

the appraisal. In case he/she has served for less than 90 days in Care then he/ she will

be eligible for an appraisal in the succeeding appraisal period.

9.2} All appraisals will be reviewed and endorsed by the next senior in the line of

reporting to the appraiser.

9.3} Appraisals of all HODs (at unit) will also be endorsed by the staff functional head

at Corporate.

69
9.4} Associates below the grade of Manager (or equivalent designation) will not

normally be eligible to endorse the appraisal. In case the appraiser is at a designation

lower than that of a Manager then a special dispensation of the CHA/HA/Corporate

Head should be taken to permit initiation.

9.5} In case the appraiser and appraisee are of the same designation then the next senior

in line should initiate the appraisal.

9.6} Special endorsements can be made by the MD/ HA/COO/CEO/Chairman on any

appraisal form Queries on eligibility of initiation should be addressed to Unit/Corporate

HR for clarification.

10) Special Performance Reviews:

Special performance reviews can be initiated as necessitated by extraneous

circumstances such as special achievements or review of trainee cadre managerial

staff seeking to come onto the regular roles. In such cases approval of CHRD should be

sought to initiate special appraisal reports.

11) Appraisal Period:

The appraisal period and dates for initiation/completion of Appraisal Forms and
payment of increments will be as follows:-

Grade Appraisal DATE

Period

70
 Initiatio Completion of Payment of
n Appraisals Increment
Forms

Senior 01Apr-31Mar 01Apr 20Apr July

Management (next year)
(G10-G12)
Middle Level 01Apr-31Mar 01Apr 20Apr June
Management (next year)

Junior Level 01Jan-31Dec 01Jan 31Jan May

Management
Executive 01Jan-31Dec 01Jan 15Feb April
Cadre
Nursing 01Oct-30Sep 01Oct 30Oct November
Cadre (next year)

12) Performance Rating:

Associates will be assessed by the appraiser on various individual qualities as
well as their overall performance on ratings as under:-
12.1. Performance rating ‘A’- Performance exceptional and consistently high level
12.2. Performance rating ‘B’- Performance superior and consistently exceeds
overall performance requirements
12.3. Performance rating ‘C’- Performance satisfactory meets most parameters of
performance requirements. Weaknesses offset by
strong points.
12.4. Performance rating ‘D’- Below satisfactory performance. However displays
progress towards an enhanced performance
12.3. Performance rating ‘E’- Poor performance due to being relatively new to
assignment or definite weakness.

13) Performance Incentive:

Incentives will be paid once a year along with the annual increment. All
incentives will be based on a pay-for-performance scheme. The performance incentive
will be paid as merit pay and added to the base salary. As per overall rating of the

71
Reviewing Officer, the appraiser will be authorized the following percentages of
incentive:-
13.1 Performance Rating ‘A ‘- 15%
13.2 Performance Rating ‘B ‘- 12 %
13.3 Performance Rating ‘C ‘- 10 %
13.4 Performance Rating ‘D ‘- 08%
13.5 Performance Rating ‘E ‘- 00%

14) Variable/ Fixed Component of Incentive:

The amount set aside for annual increment and performance incentive will
depend on budgetary allocation. However the maximum amount that an associate can
receive as incentive or increment will be 20 % of gross salary. The amount of
increment/incentive that an associate can be paid will be as fixed ( i.e. assured )
component and variable ( ie as pay-for- performance ) component will depend on the
managerial cadre and allocated as below:-

Grades Fixed Component Variable Component

Executive Level 75% 25%
Junior Management 60% 40%
Middle Management 40% 60%
Senior Management 25% 75%

15) Other Merit Incentive Options:

The company may decide to give other forms of merit incentives. They can be
as follows:-

15.1 Annual Bonus

15.2 Team Incentives
15.3 Departmental Incentives
15.4 Ex gration payments
15.5 Associate Stock Ownership plan

16) Debarment from initiation of Appraisals:

72
 Any associate who is under disciplinary proceedings will be debarred from
initiation of appraisals. In such cases the next supervisor in the line of reporting will
initiate.

17) Scrutiny of Appraisal Forms:

All initiated Appraisals will be subject to scrutiny by the HR Department. The
HR Department will check the channels of reporting for its correctness, completion of
forms in all respects and objectivity in reporting. In case of anomalies the HR.
Department will get the same rectified and then appropriately filed in the
personal file of the associate. The performance ratings will be separately recorded on a
nominal roll and forwarded to Corporate HR duly authenticated by the Unit HR Head
so as to impact the same in the salary of associates.

18) Representations against Appraisals:

Associates can represent against the rating or any other aspect of the Appraisal.
All representations will be made on an application. Comments of the appraiser,
Reviewing Officer and HR Department will be obtained on the same and sent to CHRD
for decision.

19) Performance/participation in Training Programmes:

Participation in training programmes by associates is mandatory. The
participation/performance in training programmes will be evaluated and a record of the
same maintained by the HR Department. The same will be endorsed in the Appraisal
Forms. The performance in the training programmes will be considered while deciding
whether the associate is capable of being promoted and assuming
higher responsibilities.

73
 CHAPTER IV

1) Do you understand the term Performance Appraisal?

a) Yes b) No

74
Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

Yes 26 86.7%
No 04 13.3%

Graphical Representation of collected data:

100
80
60
YES
40
NO
20
0
No. of percentage
Employees

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 86.7% of the employees say that they
understand the term of performance appraisals, 13.3% of the employees say that they
do not understand the term of Performance appraisals.

Interpretation: Most of the employees say that they understand the term
performance appraisals.

2) Is CARE Hospitals implementing Performance Appraisals ?

a) Yes b) No

75
Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

Yes 28 93.3%
No 2 6.7%

Graphical Representation of collected data:

100
80
60
YES
40
NO
20
0
No. of percentage
Employees

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 93.3% of the employees say that they agree
that CARE HOSPITALS implementing the performance appraisals, 6.7% of the
employees say that not implementing the performance appraisals.

Interpretation: Most of the employees say that CARE HOSPITALS implementing

the performance appraisals.

3) Are you aware with the procedure of Performance Appraisal?

a) Yes b) No

76
Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

Yes 27 90%
No 03 10%

Graphical Representation of collected data:

100
80
60
YES
40
[ NO
20
0
No. of percentage
Employees

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 90% of the employees say that they aware the
procedure of performance appraisal and remaining 10% of employees says that they are
not aware the procedure of performance appraisals.

Interpretation: Most of the employees say that they know the procedure of
performance appraisals.

4)Are you satisfied with present Appraisal systems

being followed in CARE Hospitals?
a)Highly satisfied b)Average
c)Satisfied d)Neutral

77
Tabular representation of collected data

SOURCE NO OF EMPLOYEES PERCENTAGE

Highly satisfied 3 10%
Average 9 30%
Satisfied 11 36.7%
Neutral 7 23.3%

Graphical Representation of collected data:

40

30
Highly satisfied
20 Average
10 Satisfied

0 Neutral
NO OF
EMPLOYEES

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 10% of the employees say that they are highly
satisfy with the present procedure of Appraisal system,36.7% of employees are
satisfied ,30% of employees are average satisfy, 23.3% of employees are in neutral
position.

Interpretation: Most of the employees saying that they are satisfy with the present
Appraisal system followed by the Organization.

5) At what frequency Performance Appraisal system is evaluated?

a) Monthly b) Quarterly
c) Half yearly d) Annually

78
Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

Monthly 2 6.7%
Quarterly 2 6.7%
Half yearly 1 3.3%
Annually 25 83.3%

Graphical representation of collected data:

90
80
70
60
50 Monthly
40
Quarterly
30
Half yearly
20
10 annually
0
No. of percentage
Employees

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 83.3% of the employees say that CARE
HOSPITALS performance appraisal system will evaluated at annually and 3.3% of
employees are say that half yearly,6.7% of employees are say that quarterly and
monthly.

Interpretation: Most of the employees agree that the performance appraisal system
will be evaluated once in yearly.

6) Which you feel is more comfortable and advisable?

a) Self appraisal system b) Confidential report system

79
Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

Self appraisal system 16 53.3%
Confidential report system 14 46.7%

Graphical representation of collected data:

60
50
40
30 self appraisal
20 confidential
10
0
No. of percentage
Employees

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 53.3% of the employees say that they feel that
self appraisal system will be more comfortable and advisable, 46.7% of employees says
that confidential report system will be more comfortable and advisable.

Interpretation: Most of the employees agree that Self appraisal system will be more
comfortable and advisable.

7) Do you receive your Performance Appraisal report after it is

evaluated?
a) Yes b) No

80
Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

Yes 12 40%
No 18 60%

Graphical representation of collected data:

20

15
Yes
10
No
5

0
No. of Employees percentage

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 40% of the employees say that they receive the
appraisal report after it is evaluated, 60% of employees says that they don’t receive
their appraisal report after evaluation yet to be done till now.

Interpretation: Most of the employees saying that they don’t receive their appraisal
report after it is evaluated.

8) Who appraises your performance?

a) HOD & HA b) HOD, HA & MD

81
Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

HOD 18 60%
HOD, HA & MD 12 40%

Graphical representation of collected data:

20
15
10 HOD
5 HOD, HA & MD

0
No. of percentage
Employees

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 18% of the employees say that they Appraised
by HOD & HA,12% of employees say that they appraised by HOD,HA & MD.

Interpretation: Most of the employees saying that they are appraised by their Head
of the department and Hospital Administration.

9) Do you think present Performance Appraisal system need a Change?

a) Yes b) No

82
Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

Yes 24 80%
No 06 20%

Graphical representation of collected data:

25

20

15
Yes
10 No

0
No. of Employees percentage

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 80% of the employees say that they think that
present appraisal system need a change, 20% of employees say that no need of change
yet to be done till now.

Interpretation: Most of the employees thinking that present appraisal system need
to be change.

10) Performance Appraisal is used for?

a) Identity training needs b) promotions/demotions
c) Recognize employee efforts d) All the above

83
Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

Identity training needs 2 6.7%
Promotions / Demotions 2 6.7%
Recognize employee 12 40%
efforts
All the above 14 46.6%

Graphical representation of collected data:

14
12 Identity training
10 needs
8 Promotions /
6 Demotions
4 Recognize
2 employee efforts
0 All the above
NO OF
EMPLOYEES

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 02% of the employees say that performance
appraisal used for giving the promotions/demotions and identity training needs, 12% of
employees saying that appraisal is used for the recognize employee efforts and
remaining 14% of employees are saying that it is used for all the above.

Interpretation: Most of the employees are saying that performance appraisal is

used for identity training needs, promotions/demotions, recognize employees efforts.

11) Is there is a need of interactive sessions during Performance Appraisal

between HOD and employees?
a) Yes b) No

84
Tabular representation of collected data

SOURCE NO OF EMPLOYEES PERCENTAGE

Yes 28 93.3%
No 02 0.7%

Graphical representation of collected data:

30
25
20
Yes
15
No
10
5
0
No. of Employees percentage

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 93.3% of the employees are agree that their is
a need of interactive session during performance appraisal between the HOD and
employee, 0.7% of employees are saying that there is no need of interactive.

Interpretation: Most of the employees are saying that it is compulsory need the
interactive session during performance appraisal between the HOD and employees.

12) Are you sure that you get some sort of benefits by offering
Appraisals?
a) Yes b) No

85
Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

Yes 26 86.7%
No 04 13.3%

Graphical representation of collected data:

30
25
20
Yes
15
No
10
5
0
No. of Employees percentage

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 86.7% of the employees are saying that they
get some benefits after appraisal, 13.3% of employees are saying that they don’t get
benefits after appraisals.

Interpretation: Most of the employees are agree that they are getting some sort of
benefits after appraised.

13) What methods are taken to improve the employee’s performance?

a) Training b) Counseling
c) Motivation d) All the above

86
Tabular representation of collected data

SOURCE NO OF EMPLOYEES PERCENTAGE

Training 03 10%
Counseling 04 13.3%
Motivation 06 20%
All the above 17 56.7%

Graphical representation of collected data:

20

15
Training
10 Counseling
5 Motivation
All the above
0
No. of percentage
Employees

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 10% of the employees are saying that training
is improves the employee performance, 13.3% of employees are saying that counseling
is used for improves the employees performance, 20% of employees are saying that
motivation is used for the improves employees performance and remaining 56.7% of
employees are saying that all the above methods are used for the improves the
performance of the employees.

Interpretation: Most of the employees are agree that for improving the
performance of the employees all the methods should be used i.e, training, counseling
and motivation.

14) How do you feel overall performance appraisal system followed by

your Organization?
a) Excellent b) very good
c) Good d) Average

87
Tabular representation of collected data:

SOURCE NO OF EMPLOYEES PERCENTAGE

Excellent 03 10%
Very good 04 13.3%
Good 16 53.3%
Average 07 23.3%

Graphical representation of collected data:

20

15
Excellent
10
Very good
5 Good
Average
0
No. of percentage
Employees

Source: From the questionnaire given to the employees.

Analysis: The above table reveals that 10% of the employees says that over all
appraisal system is excellent, 13.3% of employees saying that it is very good, 53.3% of
employees feel that it is good, 23.3% of employees feel that is was average.1
Interpretation: Most of the employees are feel that over all performance appraisal
system is good.

88
 CHAPTER –V

1. FINDINGS

2. CONCLUSION

3. SUGGESTIONS

4. ANNEXURE

5. BIBILIOGRAPHY

1.FINDINGS

89
• Most of the employees know about performance appraisal and few of them not
aware of the performance appraisal.
• All the employees agree that CARE HOSPITALS implementing the
performance appraisals.
• Most of the employees say that they know the procedure of performance
appraisals and few of them don’t know.
• In the CARE HOSPITALS implementing the Modern method.
• Most of the employees satisfied with the present appraisal system followed by
the CARE HOSPITALS and few of them not satisfied.
• In this Organization performance appraisal evaluated once in yearly.
• Most of the employees agree that Self appraisal system will be more
comfortable and advisable.
• Performance feed back is not being implemented in the organization, presently
only few employees are receiving performance feedback.
• The head of the department will appraise the performance of the employees.
• Most of the employees thinking that present appraisal system need to be change.
• Most of the employees thinking that Self Appraisal system is required.
• Most of the employees are saying that performance appraisal is used for
identity training needs, promotions/demotions, recognize employees efforts.
• Most of the employees are feel that 360 degrees appraisal system would be
more effective than the present system.
• Most of the employees are agree that they are getting some sort of benefits after
appraised.
• Most of the employees are saying that there is a need of an expert person in the
H.R. department.
• Most of the employees are feel that over all performance appraisal system is
good.
• Performance appraisal not been done for some categories of employees of the
organization.

2.CONCLUSION

90
• Performance appraisal refers to the assessment of an employee’s actual
performance, behavior on their jobs, and his or her potential for future
performance.

• Appraisals has several objectives but the main purposes are training needs, to
assess training needs, to effect promotions, and to give pay increases.

• Employees have to understand about his or her roles and become clear about his
functions, he or she understands his or her own strengths and weaknesses.

• Performance appraisal should cover at all levels of the employee’s but it covers
only few levels. Not only few employees are aware of performance appraisal all
the employees should be aware. Appraisal needs support of all levels of
employees.

• The management has to make performance appraisal understand and clear about
questionnaire to every employee.

• Organization has to maintain proper communication between superior and

subordinate. Which leads to organizational effectiveness and employee well
being. Organizational relations also been maintained.

• The quality of work in the organization since the quality of work depends on the

performance of the employee.

• The term “Performance Appraisal” is concerned with the process of valuing a

person’s worth to an organization with a view to increasing it.

3. SUGGESTIONS

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• The awareness can be created among all the employees by conducting classes
and interactive sessions about the Performance Appraisal.
• The organization should cover all categories of employees for appraisal system.
• Hence different forms should be designed for different categories of employees
of the Organization.
• By this the employees will know about their lacking and try to improve and
their superior should counsel the employee about the Performance.
• Organization should give feedback to all levels of employees.
• Organization should focus on performance feed back and it should be
communicated for all the employees of CARE Hospitals.
• Organization should give scope for interaction between superior and
subordinate.
• Organization should appoint an expert in appraisal to make appraisal authentic
and fool proof.
• Performance appraisal should be done for the lower level employees also, so
that they can work sincerely.
• Periodical appraisal helps the company to compare employee’s performance
and to take apt decisions for further improvement.
• Annual performance appraisals evaluate the role of the employee in the
organizational development and also monitoring the standard, expectations,
objectives, efficiency in handling task and responsibilities in a period of time.
• Each employee should evaluate by his supervisor and to discuss each other to
set objectives for upcoming evaluation.
• This discussion should cover the review of overall progress, problems
encountered, performance improvement possibilities, long term career goals,
specific action plan about job description and responsibilities, employee
development interest and needs, to concentrate specific areas of development, to
review performance objectives and performance standard, ongoing feed back
and periodic discussions.

4. ANNEXURE

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P.SAI SWAPNA,

MBA IV SEM,

VSM COLLEGE,

RAMACHANDRAPURAM,

EAST GODAVARI DIST.

As part of my project work for the fulfillment of the partial requirement of the

award of MBA, VSM COLLEGE affiliated to Andhra University. I request you to

spare few minutes of your valuable time to respond to the questions given in the

questionnaire.

My study is based on Human Resource Management-“PERFORMANCE

APPRAISAL”.

I assure this is strictly confidential and purely an academic exercise and shall

not be published or disclosed outside under any circumstances.

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PERSONAL DETAILS:

EMPLOYEE NAME:

DESIGNATION:

DEPT.:

EXPERIENCE:
1) Do you understand the term Performance Appraisal?
a) Yes b) No

2) Is CARE Hospitals implementing Performance Appraisal’s?

a) Yes b) No

3) Are you aware with the procedure of Performance Appraisal?

a) Yes b) No

4) Are you satisfied with present Appraisal system being followed in CARE
Hospitals?
a) Highly satisfied b) Satisfied
c) Average satisfy d) Neutral

5) At what frequency Performance Appraisal system is evaluated?

a) Monthly b) Quarterly
c) Half yearly d) Annually

6) Which you feel is more comfortable and advisable?

a) Self appraisal system b) Confidential report system

7) Do you receive your Performance Appraisal report after it is evaluated?

a) Yes b) No

8) Who appraises your Performance?

a) HOD & HA b) HOD, HA & MD

9) Do you think present Performance Appraisal system need a change?

a) Yes b) No

10) Performance Appraisal is used for

a) Identity training needs b) promotions/demotions
c) Recognize employee efforts d) All the above

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11) Is there is a need of interactive sessions during Performance Appraisal between
HOD’s and employees?
a) Yes b) No

12) Are you sure that you get some sort of benefits by offering Appraisals?
a) Yes b) No

13) What methods are taken to improve the employee’s Performance?

a) Training b) Counseling
c) Motivation d) All the above

14) How do you feel overall Performance Appraisal system followed by your
organization?
a) Excellent b) very good
c) Good d) average

15) Give me any suggestions on Performance Appraisal System in CARE.

5.BIBLIOGRAPHY

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 5.BIBILIOGRAPHY

“HUMAN RESOURCE MANAGEMENT AND

INDUSTRIAL RELATIONS”
SUBBA RAO.P

“HUMAN RESOURCE MANAGEMENT”

ASWATHAPPA.K

“APPRAISING AND DEVELOPING MANAGERIAL PERFORMANCE”

“RAO, T.V”

“PERFORMANCE MANAGEMENT”
“PREM CHADHA”

Websites:

www.carehospitals.com

www.google.com

{www.changingminds.org

www.performance-appraisal.com}

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