A Project Report On

PERFORMANCE APPRAISAL SYSTEM

Prepared For and Presented To

(As partial fulfillment for the award of degree in

PGDM) (Specialization-Human Resource) Institute Of Advanced Management & Research (Approved by AICTE, Ministry of HRD, Govt of India)

Submitted by

Submitted to

Niwedita Singh Gaur H.R & Marketing

Mr.Bharat Bhushan Mr.Mohd.Waseem

ACKNOWLEDGEMENT
Words often fail to express inner feelings of gratitude and indebtedness to ones benefactors, but then it is the only readily available medium through which the undersigned can express her sincere thanks to all those who are associated with her work in one way of the other. I feel it my profound privilege to express my most sincere gratitude and indebtedness to my project guide Mr.Ali Imran (Sr.Officer H.R), Mr.Alok Bhardwaj HR Officer & Mohd.Ali Sir who was instrumental in providing me direction, constant encouragement and co-operation in my attempt to take this project to its logical conclusion. I heartily want to thank Mr. Aftab Hussain, Sr.Manager- HR for having granted this wonderful opportunity to pursue my summer project at Samiah International Builders Pvt .Ltd. & properly guide me time to time regarding completion of my project report, and to all the respondents who featured in my survey but remain as nameless entities, I present a deep bow of gratitude. And also to all those who have been of help directly or indirectly but have not featured here. I would like to thank all my teachers at IAMR and especially my mentor Mr.Bharat Bhushan Gaur & Mr.Mohd Waseem without whose support this summer training would not have been possible. In brevity, it was pleasure 4

working in the organization, which provided me the most congenial environment.

PREFACE
Arriving at an acceptable, simple and valid method for appraising performance of employees has been a problem engaging more attention of managers now a days than any other aspect of management.

For a vast organization like Real Estate Organization, the appraisal report is a vital document for the organizational planning, growth and development and also for providing satisfaction to the employees. At the same time Performance Appraisal is a dynamic concept. No system is completely acceptable and dependable. For this reason within the management ranks, Performance Appraisal remains to be one of the most debatable topics of Human Resource Management. Even a well planned and carefully administered appraisal program does not fetch the expected results. There is, therefore, need for reviewing the total system and modifying it to accommodate the changing needs before a particular system outlines its purpose.

The present attempt aims at identifying the characteristic features of the existing system of Performance Appraisal System in SIG and understanding the extent of effectiveness towards its objectives with a view to suggesting future improvement.

DECLARATION
I ,Niwedita Singh, hereby declare that the project titled PERFORMANCE APPRAISAL at Samiah International Builders Pvt Ltd. are original and bonafide work carried out by me during the year 20082010 under the able guidance of Mr. Aftab Hussain in partial fulfillment of the requirement of Post Graduate Diploma in Business Management at IAMR. I also declare that this project is a result of my effort and no part of this project has been published earlier or been submitted as a project by me for any degree or diploma for any institute or university.

Batch: 2008-2010 4

Place: Ghaziabad

OBJECTIVE OF THE PROJECT

This project has been undertaken to share my experiences on Performance appraisal system as well as to enhance my understanding of this fascinating subject by doing some study & research. The project explains the meaning of Performance Appraisal, different methods used to evaluate the performance of employees, its effective implementation and the benefits of the system. It also aims at understanding the problems associated with performance appraisal and suggests measures to be adopted to overcome these issues. Overall objective of the project is to understand the effectiveness of performance appraisal system.

TABLE OF CONTENT
EXECUTIVE SUMMARY OBJECTIVE OF THE STUDY SCOPE OF THE STUDY IMPORTANCE OF THE STUDY THEORETICAL CONCEPTS/INTRODUCTION 35 LIMITATION OF THE STUDY
4

7 8 9 10 1174

CONCLUSION REFERENCES / BIBLOGRAPHY APPENDIX

75 76 77-79

EXECUTIVE SUMMARY
Recipe for success of any organization in todays environment demands copying with change. Management plays crucial role in anticipating these changes and readying the organization to respond appropriately for continued competitiveness.

An organization which is going to witness massive changes in the environment with the significant diversification plans in its product and services would need to focus primarily on a carefully worked out H.R strategy with strong development systems which help in identifying and developing new competences.

Along with these competencies the organization should look after the employees level of performance that is the building blocks of an organization.

According to the survey findings, certain dimensions such as reward system, performance and development appraisal procedure need some attention. Some suggestions focus on counseling sessions for the employee. The present attempt aims at identifying the characteristics features of the existing system of performance Appraisal System in SIG and understanding the effectiveness towards its objectives with a view to suggesting further improvements.

OBJECTIVE OF THE STUDY

To integrated the company and individual goals through a process of performance assessment linked to achievement of organizational objective. To increase awareness of tasks/targets and the responsibility of executives at all level to ensure fulfillment of companys objectives. To ensure an objective assessment of performance and potential. To distinguish between differing levels of performance on relative basis 4

 To identify the developmental action to be taken to enhance the performance of executives. To facilitate the process of executive/non executive development through performance planning, self review, performance analysis and two way communication between appraise and appraiser.

SCOPE OF THE STUDY

The performance Appraisal System will be used to assess the performance of employee and to plan for their development. As is apparent from what has been stated above, the investigator has confined the study to performance appraisal system of Samiah International Group only. Although appraisal as a vital tool covers all employees of the organization, for the purpose of this study, the area has been confined to that of executives & non-executives both. So far as appraisal of non executives

employees of the organization is concerned, no definite objectives have been specified by the management besides seeking to know the promotability or otherwise of an employee. This is more or less of the nature of a subjective evaluation of the personality traits of the employees by their superiors. Again, within the area of performance appraisal, the study is confined to the existing system and the manner in which the system is operating so as to identify how far it has been effective for promoting personal development and effectiveness of managerial personnel in Samiah International Group.

IMPORTANCE OF THE STUDY

The quality of management decision and actions is directly proportional to the availability and validity of information. The information provides through performance appraisal significantly enhances management effectiveness in making decisions that influence the directing and 4

coordinating of human resources. Therefore, every business ensures existence of an effective, accurate and continuous process for gathering, analyzing and disseminating information about the performance of its members. That process is the performance appraisal. Organization hires employees and rewards them so that they will provide the effort necessary to achieve organizational objectives and goals. Healthy improvement in profit can be related to increase in productivity. Productivity in turn relates directly to performance of all employees in the organization. A major indicator of the effective use of human resources through a viable performance appraisal system is the impact of that system on productivity improvement. Performance appraisal technique is designed, administered and operated by organizations for the intentional purpose of observing, measuring and altering employee workplace behavior. A major reason why employee performance appraisal is such a critical tool is that it is a control device that influences practically all human resource functions. The influences of performance appraisal are felt in

Human Resource Planning Human Resources Research Human Resources Development and Human Resources Recognition.

THEORETICAL CONCEPT
A THEORETICAL FRAMEWORK OF PERFORMANCE
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APPRAISAL
The appraisal of employees in an employment has been labeled and described by expects over the years in different ways. Common descriptions include performance appraisal, merit rating, personnel preview, progress report, behavioral assessment, employee evaluation & service rating. Definition According to Beach Performance Appraisal is the systematic evaluation of the individual with regard to his job her performance on the job and his potential for development. According to Andrew Sikula, employee appraisal or performance appraisal is a systematic evaluation of workers performance and potential for development. It is the process of estimating or judging the value excellence, qualities or status of some object person or things. Performance appraisal is a process of gathering analyzing and disseminating information about the performance of employees. Thus, performance appraisal is a systematic evaluation of personnel by their superiors or others who are familiar with their work performance. Such appraisals usually involve the use of forms and procedures that have been developed for the purpose. OBJECTIVES OF PERFORMANCE APPRAISAL Organizations undertake performance appraisal to meet certain objectives which are in the form of salary increase, promotion, identifying training and development needs, providing feedback to employees and putting pressures on employees for better performance. Salary Increase - Normally Salary increase of an employee depends on how he is performing his job for his performance there is continuous evaluation either formally or informally. In small organization generally informal performance appraisal and in large organization formal performance appraisal has been undertaken. 4

Promotion Performance appraisal plays a significant role where promotion is based on merit. Most of the organizations often use a combination of merit and seniority for promotion. Performance appraisal helps in deciding whether one can be promoted to the next higher position and what additional training will be necessary for him. Training and Development Performance appraisal tries to identify the strengths and weaknesses of an employee on his present job. Training and development programmes can be used for overcoming weaknesses of the employees. Feedback Performance appraisal provides feed back to employees about their performance. It tells where they stand. A person works better when he knows how he is working, how his efforts are contributing to the achievement of organizational objectives.

LIMITATIONS OF THE STUDY

Firstly, the information collected from the questionnaire may not be accurate, as some of the personnels could have given biased answers depending upon the various factors.

Secondly, the sample size was confined to 50 Executives therefore the conclusions drawn hold true only for this much of sample size and hence the analysis may not be appropriate if it is used for more of the sample size.

Thirdly, As per the view of the personnels, the schedule needs some modifications further, in huge organization like SIG employees with over

busy schedule instrument was really difficult to answer.

Lastly, it was quite time consuming to contact every employee and then to follow up for the data collection. Provision, should be made so that with the prior permission of G.M of the department concerned, a meeting with the batch of 10-15 executives at a time to ease and speed up the data administration process. But, frankly the environment of SIG for summer trainees is quite conductive, cooperative and encouraging.