Chapter No 1

Introduction

Organisational Profile:

Gyan Ganga Institute Of Technology & Science, Jabalpur

Gyan Ganga Institute of Technology and Science Jabalpur Madhya Pradesh

is a self financed technical institution established in May 2003 with well defined
mission and goals for Quality Technical Education to achieve world class
excellence, in the state of M.P. in particular and the country in general.

GGITS has been approved by the all India Council for Technical Education,
New Delhi recognized by Directorate of Technical Education, Govt. of M.P.
Bhopal, Affiliated to Rajiv Gandhi Proudyogiki Vishwavidyalaya, Bhopal and
managed by Shri Wardhaman Academy for Technical Education Jabalpur.

GGITS is a dream come true for the Gyan Ganga family, which is already
involved in delivering quality education to young girls and boys upto senior
secondary levels since last 16 years under the name and style of Gyan Ganga at
Raipur, Bhopal and Jabalpur, all the three schools are affiliated to CBSE Delhi and
have earned a high repute and excellence in the states of Madhya Pradesh &
Chattisgarh.

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PERFORMANCE APPRAISAL

Definition & Concepts

Performance appraisal is the process of obtaining, analyzing and recording

information about the relative worth of an employee. The focus of the performance
appraisal is measuring and improving the actual performance of the employee and
also the future potential of the employee. Its aim is to measure what an employee
does.

According to Flippo, a prominent personality in the field of Human resources,

"performance appraisal is the systematic, periodic and an impartial rating of an
employee's excellence in the matters pertaining to his present job and his potential
for a better job." Performance appraisal is a systematic way of reviewing and
assessing the performance of an employee during a given period of time and
planning for his future it is a powerful tool to calibrate, refine and reward the
performance of the employee. It helps to analyze his achievements and evaluate
his contribution towards the achievements of the overall organizational goals.

By focusing the attention on performance, performance appraisal goes to the heart

of personnel management and reflects the management's interest in the progress of
the employees.

Process of Performance Appraisal

Establishing Performance Standards the first step in the process of

performance appraisal is the setting up of the standards which will be used to as
the base to compare the actual performance of the employees. This step requires
setting the criteria to judge the performance of the employees as successful or
unsuccessful and the degrees of their contribution to the organizational goals and
objectives. The standards set should be clear, easily understandable and in
measurable terms. In case the performance of the employee cannot be measured,
great care should be taken to describe the standards.

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Communicating the Standards

Once set, it is the responsibility of the management to communicate the

standards to all the employees of the organization.

The employees should be informed and the standards should be clearly explained
to the. This will help them to understand their roles and to know what exactly is
expected from them. The standards should also be communicated to the appraisers
or the evaluators and if required, the standards can also be modified at this stage
itself according to the relevant feedback from the employees or the evaluators.

Establishing performance
standards

Communicating standards
and expectations

Measuring the actual

performance

Comparing with standards

Discussing results
(providing feedback)

Decision making – taking

corrective actions

Measuring the Actual Performance

The most difficult part of the Performance appraisal process is measuring

the actual performance of the employees that is the work done by the employees
during the specified period of time. It is a continuous process which involves
monitoring the performance throughout the year. This stage requires the careful

3
selection of the appropriate techniques of measurement, taking care that personal
bias does not affect the outcome of the process and providing assistance rather
than interfering in an employees work.

Comparing the Actual with the Desired Performance

The actual performance is compared with the desired or the standard

performance. The comparison tells the deviations in the performance of the
employees from the standards set. The result can show the actual performance
being more than the desired performance or, the actual performance being less
than the desired performance depicting a negative deviation in the organizational
performance. It includes recalling, evaluating and analysis of data related to the
employees' performance.

Discussing Results

The result of the appraisal is communicated and discussed with the

employees on one-to-one basis. The focus of this discussion is on communication
and listening. The results, the problems and the possible solutions are discussed
with the aim of problem solving and reaching consensus. The feedback should be
given with a positive attitude as this can have an effect on the employees' future
performance. The purpose of the meeting should be to solve the problems faced
and motivate the employees to perform better.

Decision Making

The last step of the process is to take decisions which can be taken either to
improve the performance of the employees, take the required corrective actions, or
the related HR decisions like rewards, promotions, demotions, transfers etc.

Pre-requisites for Effective & Successful Performance Appraisal

Pre-requisites for Effective & Successful Performance Appraisal

The essentials of an effective performance system are as follows :

1. Documentation - means continuous noting and documenting the

performance. It also helps the evaluators to give a proof and the basis of

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 their ratings.

2. Standards / Goals -the standards set should be clear, easy to understand,

achievable, motivating, time bound and measurable.

3. Practical and simple format - The appraisal format should be simple,

clear, fair and objective. Long and complicated formats are time consuming,
difficult to understand, and do not elicit much useful information.

4. Evaluation technique - An appropriate evaluation technique should be

selected; the appraisal system should be performance based and uniform.
The criteria for evaluation should be based on observable and measurable
characteristics of the behavior of the employee.

5. Communication - Communication is an indispensable part of the

Performance appraisal process. The desired behavior or the expected results
should be communicated to the employees as well as the evaluators.
Communication also plays an important role in the review or feedback
meeting. Open communication system motivates the employees to actively
participate in the appraisal process.

6. Feedback - The purpose of the feedback should be developmental rather

than judgmental. To maintain its utility, timely feedback should be provided
to the employees and the manner of giving feedback should be such that it
should have a motivating effect on the employees' future performance.

7. Personal Bias - Interpersonal relationships can influence the evaluation and

the decisions in the performance appraisal process. Therefore, the
evaluators should be trained to carry out the processes of appraisals without
personal bias and effectively.

Challenges of Performance Appraisal

In order to make a performance appraisal system effective and successful,

an organization comes across various challenges and problems. The main
challenges involved in the performance appraisal process are:

1. Determining the evaluation criteria :- Identification of the appraisal criteria

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is one of the biggest problems faced by the top management. The performance data
to be considered for evaluation should be carefully selected. For the purpose of
evaluation, the criteria selected should be in quantifiable or measurable terms.

2. Create a rating instrument :- The purpose of the Performance appraisal

process is to judge the performance of the employees rather than the employee.
The focus of the system should be on the development of the employees of the
organization.

3. Lack of competence :- Top management should choose the raters or the

evaluators carefully. They should have the required expertise and the knowledge to
decide the criteria accurately. They should have the experience and the necessary
training to carry out the appraisal process objectively.

4. Errors in rating and evaluation :- Many errors based on the personal bias
like stereotyping, halo effect (i.e. one trait influencing the evaluator's rating for all
other traits) etc. may creep in the appraisal process. Therefore the rater should
exercise objectivity and fairness in evaluating and rating the performance of the
employees

5. Resistance:- The appraisal process may face resistance from the employees
and the trade unions for the fear of negative ratings. Therefore, the employees
should be communicated and clearly explained the purpose as well the process of
appraisal. The standards should be clearly communicated and every employee
should be made aware that what exactly is expected from him/her.

Performance Appraisal is being practiced in 90% of the organizations

worldwide. Self-appraisal and potential appraisal also form a part of the
performance appraisal processes.

According to a recent survey, the percentage of organizations (out of the

total organizations surveyed i.e. 50) using performance appraisal for the various
purposes are as shown in the diagram below:

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 Purposes of performance appriasal
80%
80% 76%
71%
70%

60%

50%
42%
40% 35%

30%

20%

10% 6%

0%
Payroll & Training & Identifying cause Deciding future Promotions Other purposes
Compensation Development needs of gaps in goals Demotions
Decisions performance

The most significant reasons of using Performance appraisal are:

 Making payroll and compensation decisions - 80%

 Training and development needs - 71 %

 Identifying the gaps in desired and actual performance and its cause -76%

 Deciding future goals and course of action - 42%

 Promotions, demotions and transfers - 49%

 Other purposes - 6% (including job analysis and providing superior support,

assistance and counseling)

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Performance Appraisals as Career Development

Performance appraisal is a part of career development. The latest mantra

being followed by organizations across the world being - "get paid according to
what you contribute" - the focus of the organizations is turning to performance
management and specifically to individual performance. Performance appraisal
helps to rate the performance of the employees and evaluate their contribution
towards the organizational goals. Performance appraisal leads to the recognition of
the work done by the employees, many a times by the means of rewards and
appreciation etc. It plays the role of the link between the organization and the
employees' personal career goals.

Potential appraisal, a part of Performance appraisal, 'helps to identify the

hidden talents and potential of the individuals. Identifying these potential talents
can help in preparing the individuals for higher responsibilities and positions in the
future. The performance appraisal process in itself is developmental in nature.

Performance appraisal is also closely linked to other HR processes like

helps to identify the training and development needs, promotions, demotions,
changes in the compensation etc.~ feedback communicated in a positive manner
goes a long way to motivate the employees and helps to identify individual career
developmental plans. Based on the evaluation, employees can develop their career
goals, achieve new levels of competencies and chart their career progression.
Performance appraisal encourages employees to reinforce their strengths and
overcome their weaknesses.

Approaches to Performance Development

Performance appraisal- Traditional approach

Traditionally, performance appraisal has been used as just a method for

determining and justifying the salaries of the employees. Than it began to be used
a tool for determining rewards (a rise in the pay) and punishments (a cut in the
pay) for the past performance of the employees.

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 This approach was a past oriented approach which focused only on the past
performance of the employees i.e. during a past specified period of time. This
approach did not consider the developmental aspects of the employee performance
i.e. his training and development needs or career developmental possibilities. The
primary concern of the traditional approach is to judge the performance of the
organization as a whole by the past performances of its employees.

Therefore, this approach is also called as the overall approach. In 1950s the
performance appraisal was rec9gnized as' a complete system in itself and the
Modem Approach to performance appraisal was developed.

Performance appraisal - Modern approach

The modem approach to performance development has made the

performance appraisal process more formal and structured. Now, the performance
appraisal is taken as a tool to identify better performing employees from others,
employees' training needs, career development paths, rewards and bonuses and
their promotions to the next levels.

Appraisals have become a continuous and periodic activity in the

organizations. The results of performance appraisals are used to take various other
HR decisions like promotions, demotions, transfers, training and development,
reward-outcomes. The modem approach to performance appraisals includes a
feedback process that helps to strengthen the relationships between superiors and
subordinates and improve communication throughout the organization.

The modem approach to Performance appraisal is a future oriented

approach and is developmental in nature. This recognizes employees as individuals
and focuses on their development.

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 PERFORMANCE
APPRAISAL

Traditional Methods Modern Methods

Essay appraisal method Management By

Straight Ranking Method Objectives (MBO)

Period Comparison 360 Degree appraisal

Critical Incidents Assessment Centres

Field Review Behaviorally Anchored

Checklist Method Rating Scales

Graphic Ratings Scale Human Resource

Forced Distribution Accounting

Traditional Methods of Performance Appraisal

1. Essay Appraisal Method

This traditional form of appraisal, also known as "Free Form method"

involves a description of the performance of an employee by his superior. The
description is an evaluation of the performance of any individual based on the facts
and often includes examples and evidences to support the information. A major
drawback of the method is the inseparability of the bias of the evaluator

2. Straight Ranking Method

This is one of the oldest and simplest techniques of performance appraisal.

In this method, the appraiser ranks the employees from the best to the poorest on
the basis of their overall performance. It is quite useful for a comparative
evaluation.

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3. Paired Comparison

A better technique of comparison than the straight ranking method, this

method compares each employee with all others in the group, one at a time. After
all the comparisons on the basis of the overall comparisons, the employees are
given the final rankings.

4. Critical Incidents Method

In this method of Performance appraisal, the evaluator rates the employee

on the basis of critical events and how the employee behaved during those
incidents. It includes both negative and positive points. The drawback of this
method is that the supervisor has to note down the critical incidents and the
employee behavior as and when they occur.

5. Field Review

In this method, a senior member of the HR department or a training officer

discusses and interviews the supervisors to evaluate and rate their respective
subordinates. A major drawback of this method is that it is a very time consuming
method. But this method helps to reduce the superiors' personal bias.

6. Checklist Method

The rater is given a checklist of the descriptions of the behavior of the

employees on job. The checklist contains a list of statements on the basis of which
the rater describes the on the job performance of the employees.

7. Graphic Rating Scale

Employees In this method, an employee's quality and quantity of work is

assessed in a graphic scale indicating different degrees of a particular trait. The
factors taken into consideration include both the personal characteristics and
characteristics related to the on-the-job performance of the. For example a trait like
Job Knowledge may be judged on the range of average, above average,
outstanding or unsatisfactory.

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8. Forced Distribution

To eliminate the element of bias from the rater's ratings, the evaluator is
asked to Modem-Method

Modern Methods of Performance Appraisal

Assessment Centers:

An assessment centre typically involves the use of methods like

social/informal events, tests and exercises, assignments being given to a group of
employees to assess their competencies to take higher responsibilities in the future.
Generally, employees are given an assignment similar to the job they would be
expected to perform if promoted. The trained evaluators observe and evaluate
employees as they perform the assigned jobs and are evaluated on job related
characteristics.

The major competencies that are judged in assessment centers are

interpersonal skills, intellectual capability, planning and organizing capabilities,
motivation, career orientation etc. assessment centers are also an effective way to
determine the training and development needs of the targeted employees.

Behaviorally Anchored Rating Scales:

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique

which combines the graphic rating scale and critical incidents method. It consists
of predetermined critical areas of job performance or sets of behavioral statements
describing important job performance qualities as good or bad (for ego the
qualities like inter-personal relationships, adaptability and reliability, job
knowledge etc). These statements are developed from critical incidents.

In this method, an employee's actual job behavior is judged against the

desired behavior by recording and comparing the behavior with BARS.
Developing and practicing BARS requires expert knowledge.

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Human Resource Accounting Method'

Human resources are valuable assets for every organization. Human

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

360-Degree-Performance-Appraisal Method;-

Management by Objectives (MBO) Method distributes the employees in some

fixed categories of ratings like on a normal distribution curve. The rater chooses
the appropriate fit for the categories on his own discretion.

360- Degree- Performance-Appraisals

360 degree feedback, also known as 'multi-rater feedback', is the most

comprehensive appraisal where the feedback about the employees' performance
comes from all the sources that come in contact with the employee on his job.

360 degree respondents for an employee can be his/her peers, managers (i.e.
superior), subordinates, team members, customers, suppliers/ vendors - anyone
who comes into contact with the employee and can provide valuable insights and
information or feedback regarding the "on-the-job" performance of the employee.

360 degree appraisal has four integral components:

I. Self appraisal

2. Superior's appraisal

3. Subordinate's appraisal

4. Peer appraisal.

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 Self appraisal gives a chance to the employee to look at his/her strengths
and weaknesses, his achievements, and judge his own performance. Superior's
appraisal forms the traditional part of the 360 degree appraisal where the
employees' responsibilities and actual performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters

like communication and motivating abilities, superior's ability to delegate the
work, leadership qualities etc. Also known as internal customers, the correct
feedback given by peers can help to find employees' abilities to work in a team, co-
operation and sensitivity towards others.

Arguments Against 360 Degree Performance Appraisal

Despite the fact that 360 degree appraisals are being widely used
throughout the world for appraising the performance of the employees at all levels,
many HR experts and professionals argument against using the technique of 360
degree appraisals. The main arguments are:-

 360 performance rating system is not a validated or corroborated technique

for Performance appraisal.

 With the increase in the number of raters from one to five (commonly), it
become difficult to separate, calculate and eliminate personal biasness and
differences.

 It is often time consuming and difficult to analyze the information gathered.

 The results can be manipulated by the employees towards their desired

ratings with the help of the raters.

 The 360 degree appraisal mechanism can have an adversely effect the
motivation and the performance of the employees.

 360 degree feedback - as a process- requires commitment of top

management and the HR, resources (time, financial resources etc), planned
implementation and follow-up.

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  360 degree feedback can be adversely affected by the customers' perception
of the organization and their incomplete knowledge about the process and
the clarity 0 f the process.

 Often, the process suffers because of the lack of knowledge on the part of
the participants or the raters.

Management by Objectives

The concept of 'Management by Objectives' (MBO) was first given by Peter

Drucker in 1954. It can be defined as a process whereby the employees and the
superiors come together to identify common goals, the employees set their goals to
be achieved, the standards to be taken as the criteria for measurement of their
performance and contribution and deciding the course of action to be followed.

The essence of MBO is participative goal setting, choosing course of

actions and decision making. An important part of the MBO is the measurement
and the comparison of the employee's actual performance with the standards set.
Ideally, when employees themselves have been involved with the goal setting and
the choosing the course of action to be followed by them, they are more likely to
fulfill their responsibilities.

Define Organizational
Goals

Performance Appraisals Defining employee

(Rewards/punishments) objectives and

Continuous Monitoring
Providing Feedback of performance and
progress

Performance
evaluation/reviews

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Unique Features and Advantages of MBO

The principle behind Management by Objectives (MBO) is to create

empowered employees who have clarity of the roles and responsibilities expected
from them, understand their objectives to be achieved and help in the achievement
of organizational as well as personal goals.

Some of the important features and advantages of MBO are :

Clarity of goals-with MBO, come the concept of SMART goals i.e. goals that are :

 Specific

 Measurable

 Achievable

 Realistic, and

 Time bound.

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

 The focus is on future rather than on past. Goals and standards are set for
the performance for the future with periodic reviews and feedback.

 Motivation - Involving employees in the whole process of goal setting and

~ increasing employee empowerment increases employee job satisfaction
and commitment.

 Better communication and Coordination -Frequent reviews and interactions

between superiors and subordinates helps to maintain harmonious
relationships within the enterprise and also solve many problems faced
during the period

Assessment Centers

Assessment centre refers to a method to objectively observe and assess the

people in action by experts or HR professionals with the help of various
assessment tools and instruments. Assessment centers simulate the employee's on-

16
the-job environment and facilitate the assessment of their on-the-job performance.

An assessment centre typically involves the use of methods like

social/informal events, tests and exercises, assignments being given to a group of
employees to assess their competencies and on-the-job behavior and potential to
take higher responsibilities in the future. Generally, employees are given an
assignment similar to the job they would be expected to perform if promoted. The
trained evaluators observe and evaluate employees as they perform the assigned
jobs and are evaluated on job related characteristics. An assessment centre for
Performance appraisal of an employee typically includes:

 Social/Informal Events - An assessment centre has a group of participants

and also a few assessors which gives a chance to the employees to socialize
with a variety of people and also to share information and know more about
the organization.

 Information Sessions - information sessions are also a part of the

assessment centers. They provide information to the employees about the
organization, their roles and responsibilities, the activities and the
procedures etc.

 Assignments- assignments in assessment centers include various tests and

exercises which are specially designed to assess the competencies and the
potential of the employees. These include various interviews, psychometric
tests, management games etc. all these assignments are focused at the target
job.

The following are the common features of all assessment centers:

 The final results is based on the pass/fail criteria

 All the activities are carried out to fill the targeted job.

 Each session lasts from 1 to 5 days.

 The results are based on the assessment of the assessors with less emphasis
on self-assessment

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  Immediate review or feedback is not provided to the employees.

An organization's human resources can be a vital competitive advantage and

assessment centre helps in getting the right people in right places. The major
competencies that are judged in assessment centers are interpersonal skills,
intellectual capability, planning and organizing capabilities, motivation, career
orientation etc. assessment centers are also an effective way to determine the
training and development needs of the targeted employees.

Superior
Customers Suppliers/
Vendors

Peers EMPLOYEE Team Members

Subordinate

Self assessment is an indispensable part of 360 degree appraisals and

therefore 360 degree Performance appraisal have high employee involvement and
also have the strongest impact on behavior and performance. It provides a "360-
degree review" of the employees' performance and is considered to be one of the
most credible performance appraisal methods.

360 degree appraisal is also a powerful developmental tool because when

conducted at regular intervals (say yearly) it helps to keep a track of the changes
others' perceptions about the employees. A 360 degree appraisal is generally found
more suitable for the managers as it helps to assess their leadership and managing
styles. This technique is being effectively used across the globe for performance
appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance
Performance Appraisal for Employees at Different Levels

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 Performance Appraisal for Employees at Different Levels Performance
appraisal is important for employees at all levels throughout the organization. The
parameters, the characteristics and the standards for evaluation may be different,
but the fundamentals of performance appraisal are the same. But as the level of the
employees' increases, performance appraisal is more effectively used as the tools
of managing performance.

Performance appraisal of Managers:

Appraising the performance of managers is very important, but at the same

time, it is one of the most difficult tasks in the organization. It is difficult because
most of the managerial work cannot be quantified i.e. it is qualitative in nature like
leading his/her team, guiding, motivating, planning etc.

Therefore, the two things to be noted and evaluated for the purpose of appraisals
are:

 Performance in accomplishing goals, and

 Performance as managers

Performance in accomplishing goals

Managers are responsible for the performance of their teams as a whole.

Performance in accomplishing goals would mean to look at the completion or
achievement of the goals set for a team of employees which is being assigned to or
working under a particular manager. The best measuring criteria for a manager are
hi goals, his plans of course of action to achieve them and the extent of
achievement of the goals.

Performance as managers

The responsibilities of managers include a series of activities which are

concerned with planning, organizing, directing, leading, motivating and
controlling. Managers can be rated on the above parameters or characteristics

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Criteria for measuring performance at different levels:

The criteria for measuring performance changes as the levels of the

employees and their roles and responsibilities change.

A few examples for each level are described below:

For top level management

 Degree of organizational growth and expansion

 Extent of achievement of organizational goals

 Contribution towards the society

 Profitability and return on capital employed

For middle level managers

 Performance of the departments or teams

 Co-ordination with other departments

 Optimal use of resources

 Costs V s. revenues for a given period of time

 The communication with superiors and subordinates

For front line supervisors

 Quantity of actual output against the targets

 Quality of output against the targets

 Number of accidents in a given period

 Rate of employee absenteeism

Arguments against Performance Appraisal

A large number of managers, human resource professionals, human

resource consultants and researchers are recommending companies to get rid of the
performance appraisal systems. The main argument given by the researchers is that
the system of performance appraisals itself is based on a few wrong assumptions
and it fails to fulfill its basic purpose.

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The major arguments given in favor of abolishing the performance appraisals are:

1. The first and the foremost argument is the fact that discrepancies between
the theory and its application. There is often a disconnect between the theory and
the practical implementation.

2. PA is a bitter process for most of the employees which can create emotional
pressures and stress for the employees

 The focus of the P A process is too narrow i.e. just to determine the rewards
and punishments for the employees by measuring their past performance.

 PA is often looked upon as a tool to control the employees by the superiors

which dampen the intrinsic motivation of the employees.

 Most of the managers and superiors are not trained enough to carry the
processes in the appropriate and the structured manner.

 PA process increases the dependency of the employees on their superiors.

PA process encourages accountability, approvals and discourages the spirit
of creativity and initiative by employees and also demotivates them.

 Performance appraisal are conducted by managers who are often not trained
t~ be appraisers. This obstructs the genuine feedback, as it includes
subjectivity and bias of the raters leading to incorrect and unreliable data
regarding the performance of the employees.

 PA can adversely affect the morale of the employees and create

dissatisfaction among them, thereby affecting the organizational
performance.

 Performance appraisals and reviews are often time consuming, with faulty
methods to measure performances and generating false results and the
decisions taken can be politically influenced.

An example to support the above mentioned points would be the case of a call
centre employee - The appraisal of a call center employee is based on the amount

21
of work they do, the number of calls they receive, the amount of revenue they
collect, the average time they append on each call. But if analyzed, all these factors
depend on other factors like the response of the callers, the availability of the
information asked for, the nature of the calls etc. which are often not considered
during appraisals. But the employee being aware of all these factors, the situation
can create stress and dissatisfaction among the employee. Current Global Trends in
Performance Appraisal Program.

Current Global Trends in Performance Appraisal Program The performance

appraisal process has become the heart of the human resource management system
in the organizations. Performance appraisal defines and measures the performance
of the employees and the organization as a whole. It is a tool for accessing the
performance of the organization.

The important issues and points concerning performance appraisal in the present
world are:

1) The focus of the performance appraisals is turning towards career

development relying on the dialogues and discussions with the superiors.

2) Performance measuring, rating and review systems have become more

detailed, structured and person specific than before.

3) Performance related pay is being incorporated in the strategies used by the

organizations.

4) Trend towards a 360-degree feedback system

5) The problems in the implementation of the performance appraisal processes

are being anticipated and efforts are being made to overcome them.

6) In India, the performance appraisal processes are faced with a lot of

obstacles, the most prominent being the lack of quantifiable indicators of the
performance. Global Trends

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The emergence of following concepts and the following trends related to
Performance appraisal can be seen in the global scenario:

 360 Degree Appraisal

360 degree feedback, also known as 'multi-rater feedback', is the most

comprehensive appraisal where the feedback about the employees'
performance comes from all the sources that come in contact with the
employee on his job. Organizations are increasingly using feedback from
various sources such as peer input, customer feedback, and input from
superiors. Different forms with different formats are being used to obtain
the information regarding the employee performance.

 Team Performance Appraisal

According to a wall street journal headline, "Teams have become

commonplace in U.S. Companies". Most of the performance appraisal
techniques are formulated with individuals in mind i.e. to measure and rate
the performance of the individual employee. Therefore, with the number of
teams increasing in the organizations, it becomes difficult to measure and
appraise the performance of the team. The question is how to separate the
performance of the team from the performance of the employees. A solution
to this problem that is being adopted by the companies is to measure both
the individual and the team performance. Sometimes, team based objectives
are also included in the individual performance plans.

Rank and Yank Strategy

Also known as the "Up or out policy", the rank and yank strategy refers to
the performance appraisal model in which best-to-worst ranking methods are used
to identify and separate the poor performers from the good performers. Then the
action plans and the improvement opportunities of the poor performers are
discussed and they are given to improve their performance in a given time period,
after which the appropriate HR decisions are taken. Some of the organizations

23
following this strategy are Ford, Microsoft and Sun Microsystems.

Benefits or Advantages of Performance Appraisal

 As Performance appraisal is an objective, systematic and periodical

evaluation of staff performance, it therefore enhance the reliability of the
company' staff selection/assessment procedure and policy

 Staff is more motivated to learn and grow under this performance appraisal
methodology.

 Enable the assessment of the present and future potential of staff and
determines the training and development needs

 Enable management in better decision making and planning of manpower

ensure the effective and judicious use of resources.

 It acts a tool for job enrichment, promotion, salary increment, career

planning, training and development and manpower planning.

24
 Chapter – 2

Objectives of Study::

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

 To judge the gap between the actual and the desired performance.

 To help the management in exercising organizational control.

 Helps to strengthen the relationship and communication between superior -

subordinates and management - employees.

 To diagnose the strengths and weaknesses of the individuals so as to

identify the training and development needs of the future.

 To provide feedback to the employees regarding their past performance.

Provide information to assist in the other personal decisions in the
organization.

 Provide clarity of the expectations and responsibilities of the functions to be

performed by the employees.

 To judge the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training and development.

 To reduce the grievances of the employees.

 Provide information to assist in the HR decisions like promotions, transfers

etc.

25
 Chapter – 3

Research Methodology

The method used for the survey is as following.

1. Selection of and organization where the process has been implemented.

2. Preparing a schematic questionnaire based on the objective.

3. Distributing the questionnaire to the staff randomly.

4. Scrutiny of data collected by the personals.

5. Reviewing the results and presenting it in the form of chart and tables.

To achieve our objective a survey of 75 employees was conducted at the

institute for this purpose questionnaire method was used. The detailed
questionnaire is attached at appendix.

Reference: Sample of questionnaire is provided in the appendices

26
 Chapter – 4

Analysis and Interpretation of Data

Results are been shown in form of Pie charts and interpretations

Question No. 1

Response Percentage

Yes 72%

No 28%

Interpretation :

With the data collected doing survey the response confirmed that 78% of
the employees were aware of performance appraisal system those who do not
awareness are recently employees.

Answer

QUES. NO. 1
No,11,
28

Yes
No

Yes,29,
72

Figure : 1 Response to-do you aware of performance appraisal system of your

institute?

27
Question No.2

Response Percentage

Yes 100%

No 0%

Interpretation :

It was observed that each and every employee believes in performance

appraisal system and they found it very essential. 100% employees believe in
performance appraisal system.

Answer

QUES. NO2

No,0,
0%

Yes
No

Yes, 40,
100%

Figure : 2 Response to-do you believe in performance appraisal system?

28
Question No.3

Response Percentage

Yes 95%

No 05%

Interpretation :

The survey received very positive response in favor of performance

appraisal system as 95% employers have this opinion that this helps in improving
their performance only 5% say no.

Answer

QUES. NO.3
No,2,
5%

Yes
No

Yes, 38,
95%

Figure : 3 Response to-Do you think performance appraisal help in improving

performance of employees?

29
Question No4

Response Percentage

Yes 90%

No 10%

Interpretation :

90% employees believe that performance appraisal system help in their

future as it is observed that it becomes a tool to improve your performance. Only
10% were not agreeing with this.

Answer

QUES. NO. 4
No, 4,
10%

Yes
No

Yes, 36,
90%

Figure : 4 Response to – Does performance appraisal helps in your future system?

30
Question No. 5

Response Percentage

Yes 95%

No 05%

Interpretation :

95% employees believe that performance appraisal system is a good tool of

motivation and they feel it helps them and motivate them only 05% were not
agreeing with this question.

Answer

QUES. NO. 5
No,2,
5%

Yes
No

Yes,38,
95%

Figure : 5 Response to – Does performance appraisal lead to motivation?

31
Question No.6

Does your organization follow any (Method) of performance appraisal? If

Yes what is That?

Response Percentage

Yes 100%

No 00%

Interpretation :

GGITS has a systematic performance appraisal system in which they have

two aspects one is self appraisal other is feedback by the students.

Answer : Yes – By following method

1. Self Appraisal questionnaire.

2. Feed back (from student and fellow faculties and HOD)

32
Question No.7

Does your organization follow any (Method) of performance appraisal? If

Yes what is That?

Response Percentage

Yes 55%

No 45%

Interpretation :

On the whole survey confirmed that the satisfaction regarding performance

appraisal system is above average. 55% of the employees find the performance
appraisal system correct. Remaining 45% express No. i.e. they are not satisfied
with the performance appraisal of institute.

Answer :

QUES. NO. 7

No,18,
45%
Yes,22, Yes
55%
No

Figure : 6 Response to – Are you satisfied with the performance appraisal of the
institute?

33
Question No.8

Response Percentage

Yes 38%

No 62%

Interpretation :

Generally institute held performance appraisal yearly, but feedback by the

student are taken in between also. 62% employees confirm that the performance
appraisal is done yearly. Those who say 6 months are newly appointed staff in
institution.

Answer

QUES. NO. 8

6 Months,15,
38% 12 Months
6 Months

12 Months, 25,
62%

Figure : 7 Response to – What is the time period for learning the performance
appraisal?

34
Question No. :9

What are the parameters Do you think on which basis your performance is
judged?

Following parameters.

1. Student Feed back

2. Self Appraisal

3. Qualification

4. Quality Improvement programs attended.

5. Number of paper published (National/International)

6. Contribution to institute advancement during the session.

Question No: 10

Hoy your performance is communicated to you and by whom?

Answer. Through following channel

1. Head of Department

2. By Principal sometimes verbally

3. Sometimes by giving incentives.

Question No: 11

Any suggestion you would like to give for the improvement of performance
appraisal system?

Answer: No

Interpretation: Most of the staff feels that there is no requirement of change in the
present system.

35
 Chapter 5

Limitation of Study

 This study is limited to Gyan Ganga Institute of Technology and Science,

Jabalpur.

 The sample being undertaken the convenient sample type, the analysis and
findings may suffer from inaccuracy.

 The sample size is not large enough and may lead to inaccuracy.

 Since questionnaire method was used hence there were some people who
did not answer all the questions.

 It will throw light on efficiency of institutional factors and thereby stimulate

a change.

36
 Chapter : 6

Conclusion & Recommendation

Gyan Ganga institute of technology and science has a systematic

performance appraisal system for its employees with the study it can be concluded
that the faculty members are aware about performance appraisal system and they
believe that is a good tool for analyzing ones contribution to the organization.

It is also observed during the study that employees feel that performance
appraisal helps them in future growth and also it motivates to achieve new horizon
in the career.

It was found that the institute adopt two methods of performance on is self
appraisal supported by HOD's remark and also students feedback. The institute
does yearly performance appraisal and also feedback of the student are taken in
between also.

The employee consists following parameters important in their performance

appraisal.

1. Qualification

2. FDP attended

3. Paper Published

4. Contribution in institute development

On the whole employees are satisfied with the present performance

appraisal system and positive response is received. In this regard and also no
suggestion were given by employees for this improvement,

The performance appraisal is communicated to the employee by HOD's,

Principal and also employees know that their salary incentives are based on their
performance appraisal.

G.G.I.T.S has a performance appraisal system which is working very well

and employees are also satisfied with it. And they feel that it is a good tool in their
future growth.

37
Bibliography

 Randull,S.Schuler : “Effective Personnel Management”, third

edition, West Publishing, New York, 1989

 K.Aswathappa: “Human Resource & Personnel Management_ text

and cases”, Tata McGraw Hill Publishing Company, New Delhi.

 Dr. B.P. Singh & Dr. Chabbra: “Personnel Management &

Industrial Relations”, Dr & Co. Publications,2001

 C.B.Memoria : “Personnel Management”, Dr. & Co. Publications,

1999

38
Annexure
Questionnaire
Sample Questionnaire
Performance Appraisal
General Information
A) Your Age [ ] Year
B) You Are Male [ ]/Female [ ]
C) How long you are working with this institution [ ]
D) How Many Times your performance has been judged [ ]
Questionnaire
Ques : 1) Do you aware of performance appraisal system of your institute?
A) Yes B) No
Ques : 2) Do you believe in performance appraisal system?
A) Yes B) No
Ques : 3) Do you think performance appraisal help in improving performance
of Employees?
A) Yes B) No
Ques : 4) Does performance appraisal helps in your future system?
A) Yes B) No
Ques : 5) Does performance appraisal lead to Motivation?
A) Yes B) No
Ques : 6) Does your organization follow any (Method) of performance
appraisal? If yes what is that?
A) Yes B) No
Ques : 7) Are you satisfied with the performance appraisal of the institute?
A) Yes B) No
Ques : 8) What is the Time period for the performance appraisal?
A) 6 Months B) 12 Months
Ques : 9) What are the parameters do you think on which basis your
performance is judged?
Ques : 10) How your performance is communicated to you and by whom?
Ques : 11) Any suggestion you would like to give for the improvement of
performance appraisal system?

39