SUMMER TRAINING PROJECT REPORT

ON

Performance Appraisal System Of

RSHR Services at Lucknow

Submitted in partial fulfillment of the requirement of

Master of Business Administration,
UNDER THE GUIDANCE OF
(MAANSI MISHRA)
(CO-ORDINATOR)

Submitted By- POOJA YADAV

MBA 2ND YEAR
ROLL NO. 1543170036

B.N.COLLEGE OF ENGINEERING & TECHNOLOGY

LUCKNOW
(Affiliated to APJAKTU)
Table of contents

1
 Page no.

A. PREFACE 3

B. ACKNOWLEDGEMENT 4

C. PART- 1

INTRODUCTION 6

COMPANY PROFILE 49

D. PART-2

NEED OF THE PROJECT 61

RESEARCH METHODOLGY 63

FINDINGS 84

SUGGESTIONS 86

CONCLUSION 88

BIBLIOGRAPHY 89

APPENDIX 90

2
 PREFACE
During my summer internship in RSHR SERVICES, LUCKNOW, I was assigned a
project regarding PAMS. This project has been competed in parts. Firstly consists of
comparative study on performance appraisal management system provided by RSHR
SERVICES.
This was a step wise process including collection of data, company profile, product
features, analysis of product, and finally concluding the data while putting some
suggestions. The whole study was done with a view that it would help company maintain
its expansion path and improvise their schemes to perform better than other IT firms.

It was the best platform being provided as it has increased my horizons and has given me
the opportunity to apply my theoretical knowledge and managerial concepts practically in
the real business.

3
 Acknowledgement
Like most effective endeavors, preparing this project was a collaborative effort. I
owe a great debt to many individuals who helped me in successful completion of this
project.
I would like to express my sincere gratitude to RSHR SERVICES Mr.
Raghuvansh Singh (director) for giving me an opportunity to complete my summer
internship program in their esteemed organization
I would not have completed this journey without the help, guidance and constant
support and co-operation of certain people who acted as guides and friends along the way. I
extend my gratitude to my project guide Maansi Mishra Maam, who assisted me in
compiling the project.

I would like to express my deepest and sincere thanks to Mr. R.P. Pandey (Managing
Trustee, B.N College of engineering &Technology), (Dr.) Aashutosh Dwivedi (Director,
Academics, B.N College of engineering &Technology), Mr. Suman Bhattacharya
(HOD-MBA) and Maansi Mishra (co-ordinator) for their invaluable guidance and help.
In this connection I would like to express my gratitude to my parents and friends who
were constant source of inspiration during my summer training project report. At last I
thank to almighty for giving me the power to complete this project successfully.

Name of the Student- Pooja Yadav

Roll No- 1543170036
Date-
Signature of Student- Pooja Yadav

4
CHAPTER-I

5
 INTRODUCTION

PERFORMANCE APPRASIAL

A performance appraisal has been defined as any personnel decision that affects the status
of employee regarding their retention, termination, promotion, transfer, salary increase or
decrease, or admission into a training program.

Performance appraisal is a systematic evaluation of present and potential capabilities of

personnel and employees by their superiors, or a professional from outside. It is a process
of estimating or judging the value, excellent qualities or status of a person or a thing. It is a
process of collecting, analyzing, and evaluating data relative to job behavior and results of
individuals. The appraisal system is organized on the principle of goals and management by
objectives. Management decisions on performance utilize several integrated inputs: goals
and plans, job evaluation, performance evaluation, and individual history.

Performance appraisal can be either formal or informal. Formal system is used for schedule
regular sessions in which an employees performance is discussed. Informal appraisals are
unplanned, often just chance statements made in passing about an employees performance.
Most organizations use a formal appraisal system. Some organization use more than one
appraisal system for different types of employees or for different appraisal purposes.
Organizations need to measure employees performance to determine whether acceptable
standards of performance are being maintained. The six primary criteria on which the value
of performance may be assessed are: quality, quantity, timeliness, cost effectiveness, need
for supervision, and interpersonal impact. The trend nowadays is in the direction of
attempting to measure what the man does rather than what he is- to measure what is the
output rather than what is the input. The observations and understanding of the
performance appraisal process helped reduce a monumental task into something much
more manageable.

6
Performance appraisal is a method of evaluating the behavior of employees in the
workspot, normally including both the quantitative and qualitative aspects of job
performance. It is systematic and objective way of evaluating both work-related behavior
and potential of employees. It is a process that involves determining and communicating to
an employee how he or she performing the job and ideally, establishing a plan of
improvement.

Performance appraisal could be taken either for evaluating the performance of employees
or for developing them. The evaluation is of two types: telling the employees he stands and
using the data for personnel decisions concerning pay, promotions, etc. The developmental
objectives focus on finding individual and organizational strengths and weaknesses;
developing healthy superior-subordinate relations; and offering appropriate
counseling/coaching to the employee with a view to develop his potential in future.

Appraisal of employees serves several useful purposes:

1. Compensation decisions: It can serves as a basis for pay raises. Managers need
performance appraisal to identify employees who are performing at or above
expected levels. This approach to compensation is at the heart of the idea that raises
should be given merit rather than for seniority. Under merit systems, employee
receives raises based on performance.

2. Promotion decisions: It can serves as a useful basis for job change or promotion.
When merit is the basis for reward the person doing the best job receives the
promotion. If relevant work aspects are measured properly, it helps in minimizing
feelings of frustration of those who are not promoted.

7
 3. Training and development programs: It can serve as a guide for formulating a
suitable training and development program. Performance appraisal can inform
employees about their progress and tell them what skills they need to develop to
become eligible for pay raises or promotions or both.

4. Feedback: performance appraisal enables the employee to know how well he is

doing on the job. It tells him what he can do to improve his present performance
and go up the organizational ladder.

5. Personal development: Performance appraisal can help reveal the causes of good
and poor employee performance. Through discussions with individual employees, a
line manager can find out why they perform as they do and what steps can be
initiated to improve their performance.

Main features
A performance appraisal is a systematic general and periodic process that assesses an
individual employee's job performance and productivity in relation to certain pre-
established criteria and organizational objectives. Other aspects of individual employees
are considered as well, such as organizational citizenship behavior, accomplishments,
potential for future improvement, strengths and weaknesses, etc.

To collect performance appraisal data, there are three main methods: objective production,
personnel, and judgmental evaluation. Judgmental evaluations are the most commonly used
with a large variety of evaluation methods. Historically, performance appraisal has been
conducted annually (long-cycle appraisals); however, many companies are moving towards
shorter cycles (every six months, every quarter), and some have been moving into short-

8
cycle (weekly, bi-weekly) performance appraisal. The interview could function as
"providing feedback to employees, counseling and developing employees, and conveying
and discussing compensation, job status, or disciplinary decisions". Performance appraisal
is often included in performance management systems. Performance appraisal helps the
subordinate answer two key questions: first, "What are your expectations of me?" second,
"How am I doing to meet your expectations?"

Performance management systems are employed "to manage and align" all of an
organization's resources in order to achieve highest possible performance. "How
performance is managed in an organization determines to a large extent the success or
failure of the organization. Therefore, improving PA for everyone should be among the
highest priorities of contemporary organizations".

Some applications of PA are compensation, performance improvement, promotions,

termination, test validation, and more. While there are many potential benefits of PA, there
are also some potential drawbacks. For example, PA can help facilitate management-
employee communication; however, PA may result in legal issues if not executed
appropriately, as many employees tend to be unsatisfied with the PA process. PAs created in
and determined as useful in the United States are not necessarily able to be transferable
cross-culturally.

The main purpose of appraisal is to give the appraisee the opportunity to reflect on
their work and learning needs in order to improve their performance. This can be achieved
through discussing their development and feedback on their job performance in a way that
is constructive and motivational.

9
 Definition
The process by which a manager or consultant (1) examines and evaluates an
employee's work behavior by comparing it with preset standards, (2)documents the results
of the comparison, and (3) uses the results to provide feedback to the employee to show
where improvements are needed and why.

Performance appraisals are employed to determine who needs what training, and who will
be promoted, demoted, retained, or fired.

The management forma accentuated objectives and contained consistent standards for all
management. The appraisal form for no management positions focused on job-relate
accountabilities included specific measures of performance, and incorporate differential
weighting schemes. However, it did not include objectives for individuals or teams, nor did
it encourage personal growth and development (PA) some authors have defined
performance appraisal. These definitions of performance appraisal are given below:

Definition of performance appraisal:

1. The process by which an employees contribution to the organization during
specified period of time is assessed.

10
 - C. D. Fisher L. F. Schoenfeldt and J. B. Shaw

2. Performance appraisal as means of evaluating aim employees current and or past

performance relative to his or her performance standards.

- Gary Dessler

3. Performance appraisal is defined as a systematic periodic evaluation of the worth

of an individual of an organization, usually mad by a superior or someone in
position to observe his performance.

- Bellows

4. Performance appraisal is the systematic evaluation of the individual

with respect to this performance on the job and his potential of
development.

- Beach

5. Performance appraisal is the process by which organization evaluate individual job

performance.

- William B. Weather and Keith Davis

6. Performance appraisal as a systematic evaluation review of employee meaningful

job behavior with respect to their effectiveness in meeting their job requirements
and responsibilities.

- John Douglas, Stuart Klein and David Hunt

11
 7. Performance appraisal is the process an employer uses to determine whether an
employee is performing the job as intended. ( Merit rating, efficiency rating, service
rating and employee appraisal arc others frequently used terms for performance
appraisal)

- Leon C. Megginson

8. Performance appraisal as the systematic description of an employees job-relevant

strengths and weaknesses.

-Wayne F. Cascio

Applications of results

A central reason for the utilization of performance appraisals (PAs) is performance

improvement ("initially at the level of the individual employee, and ultimately at the level
of the organization").[12] Other fundamental reasons include "as a basis for employment
decisions (e.g. promotions, terminations, transfers), as criteria in research (e.g. test
validation), to aid with communication (e.g. allowing employees to know how they are
doing and organizational expectations), to establish personal objectives for training"
programs, for transmission of objective feedback for personal development, "as a means of
documentation to aid in keeping track of decisions and legal requirements"[12] and in wage
andsalary administration.[1] Additionally, PAs can aid in the formulation of job criteria and
selection of individuals "who are best suited to perform the required organizational tasks".
[4]
A PA can be part of guiding and monitoring employee career development.[16] PAs can
also be used to aid in work motivation through the use of reward systems.[4]

12
Potential benefits

There are a number of potential benefits of organizational performance management

conducting formal performance appraisals (PAs). There has been a general consensus in the
belief that PAs lead to positive implications of organizations. Furthermore, PAs can benefit
an organizations effectiveness. One way is PAs can often lead to giving individual workers
feedback about their job performance. From this may spawn several potential benefits such
as the individual workers becoming more productive.

Other potential benefits include:

Facilitation of communication: communication in organizations is considered an

essential function of worker motivation. It has been proposed that feedback from PAs
aid in minimizing employees perceptions of uncertainty. Fundamentally, feedback and
management-employee communication can serve as a guide in job performance.

Enhancement of employee focus through promoting trust: behaviors, thoughts,

and/or issues may distract employees from their work, and trust issues may be among
these distracting factors. Such factors that consume psychological energy can lower job
performance and cause workers to lose sight of organizational goals.[13] Properly
constructed and utilized PAs have the ability to lower distracting factors and encourage
trust within the organization.

13
 Goal setting and desired performance reinforcement: organizations find it efficient
to match individual workers goals and performance with organizational goals. PAs
provide room for discussion in the collaboration of these individual and organizational
goals. Collaboration can also be advantageous by resulting in employee acceptance and
satisfaction of appraisal results.

Performance improvement: well constructed PAs can be valuable tools for

communication with employees as pertaining to how their job performance stands with
organizational expectations."At the organizational level, numerous studies have
reported positive relationships between human resource management (HRM) practices"
and performance improvement at both the individual and organizational levels.

Determination of training needs: Employee training and development are crucial

components in helping an organization achieve strategic initiatives. It has been argued
that for PAs to truly be effective, post-appraisal opportunities for training and
development in problem areas, as determined by the appraisal, must be offered. PAs
can especially be instrumental for identifying training needs of new employees. Finally,
PAs can help in the establishment and supervision of employees career goals.

Potential complications

Despite all the potential advantages of formal performance appraisals (PAs), there are also
potential drawbacks. It has been noted that determining the relationship between individual
job performance and organizational performance can be a difficult task. Generally, there are
two overarching problems from which several complications spawn. One of the problems
with formal PAs is there can be detrimental effects to the organization(s) involved if the

14
appraisals are not used appropriately. The second problem with formal PAs is they can be
ineffective if the PA system does not correspond with the organizational culture and system.

Complications stemming from these are:

Detrimental to quality improvement: it has been proposed that the use of PA

systems in organizations adversely affect organizations pursuits of quality
performance. It is believed by some scholars and practitioners that the use of PAs is
more than unnecessary if there is total quality management.

Subjective evaluations: Traditional performance appraisals are often based upon a

manager's or supervisor's perceptions of an employee's performance and employees are
evaluated subjectively rather than objectively. Therefore the review may be influenced
by many non-performance factors such as employee 'likeability', personal prejudices,
ease of management, and/or previous mistakes or successes. Reviews should instead be
based on data-supported, measurable behaviors and results within the performers
control.

Negative perceptions: "Quite often, individuals have negative perceptions of

PAs". Receiving and/or the anticipation of receiving a PA can be uncomfortable and
distressful and potentially cause "tension between supervisors and subordinates". If the
person being appraised does not trust their employer, appraiser or believe that they will
benefit from the process it may become a "tick box" exercise.

Errors: Performance appraisals should provide accurate and relevant ratings of an

employees performance as compared to pre-established criteria/goal (i.e.
organizational expectations). Nevertheless, supervisors will sometimes rate employees

15
 more favorably than that of their true performance in order to please the employees and
avoid conflict. "Inflated ratings are a common malady associated with formal" PA.

Legal issues: when PAs are not carried out appropriately, legal issues could result
that place the organization at risk. PAs are used in organizational disciplinary
programs as well as for promotional decisions within the organization. The improper
application and utilization of PAs can affect employees negatively and lead to legal
action against the organization.

Performance goals: performance goals and PA systems are often used in association.
Negative outcomes concerning the organizations can result when goals are overly
challenging or overemphasized to the extent of affecting ethics, legal requirements, or
quality. Moreover, challenging performance goals can impede an employees abilities to
acquire necessary knowledge and skills. Especially in the early stages of training, it
would be more beneficial to instruct employees on outcome goals than on performance
goals.

Derail merit pay or performance-based pay: some researchers contend that the
deficit in merit pay and performance-based pay is linked to the fundamental issues
stemming from PA systems.

Improvements-

Although performance appraisals can be so easily biased, there are certain steps that can be
taken to improve the evaluations and reduce the margin of errors through the following:

16
 Training - Creating an awareness and acceptance in the people conducting the
appraisals that within a group of workers, they will find a wide range in
difference of skills and abilities.

Providing Feedback to Raters - Trained raters provide managers who

evaluated their subordinates with feedback, including information on ratings
from other managers. This reduces leniency errors.

Subordinate Participation - By allowing employee participation in the

evaluation process, there is employee-supervisor reciprocity in the discussion
for any discrepancies between self ratings and supervisor ratings, thus,
increasing job satisfaction and motivation.

Opposition

Not everyone is in favor of formal performance appraisal systems. Many employees,

especially those most affected by such ratings are not very enthusiastic about them. There
are many critics of these appraisals including labor unions and managers.

Labor Unions

Labor unions represent 11% (7% in the private sector) of the work force in the United
States. In some cases they may require that seniority be taken as one of the main criteria for
promotion. However, length of job experience may not always be a reliable indication of
the ability to perform a higher level job. That is why some employers give senior people
the first opportunity for promotion, but the employer may seek to further qualify the
employee for that promotion because of their abilities (not solely because of length of

17
service). Performance appraisals may provide a basis for assessment of employee merit as a
component of these decisions.

Managers

Managers who have had unsatisfactory experiences with inadequate or poorly designed
appraisal programs may be skeptical about their usefulness.

Some managers may not like to play the role of a judge and be responsible for the
future of their subordinates.

They may be uncomfortable about providing negative feedback to the employees.

This tendency can lead them to inflate their assessments of the workers job
performance, giving higher ratings than deserved.

The main purpose of appraisal is to give appraise the opportunity to reflect on

their work and learning needs in order to improve their performance. This can be achieved
through discussing their development and feedback on their job performance in a way that
is constructive and motivational.

Importance of Performance Appraisal

To estimate the overall effectiveness of employees in performing

their jobs.

To identify strengths and weakness in job knowledge and skills,

18
 To determine whether a subordinates responsibilities can be
expended,

To identify future training and development needs,

To review progress toward goals and objectives,

To determine readiness for promotion,

To motivate and guide growth and development.

Objectives of Performance Appraisal -

Performance appraisal plans are designed to meet the needs of the organization and the
individual. It is increasingly viewed as central to good human resource management. The
broad objectives of performances appraisal are:

To help the employee to overcome his weaknesses and improve his strengths so as
to enable him to achieve the desired performance.
To generate adequate feedback and guidance from the immediate superior to an
employee working under him.
To contribute to the growth and development of an employee through helping him
in realistic goal setting.
To provide inputs to system of rewards (comprising salary increment, transfer,
promotions, demotions or terminations) and salary administration.
To help in creating a desirable culture and tradition in the organization.
To help the origination to identify employee for the purpose of motivating, training
To generate significant, relevant, free, and valid information about employees.

19
In brief, the main purposes of performance appraisal are:
To review past performance;

To assess training needs;

To help develop individuals;

1. To audit the skills with in organization;

2. To set targets for future performance;

3. To identify potential for promotion.

In short, the performance appraisal of an organization provides systematic

judgments to backup wage and salary administration; suggests needed changes in ones
behavior, attitudes, skills, or job knowledge; and uses it as a base for coaching and
counseling the individual by his superior. Appraising employee performance is useful
for compensation, placement, and development purposes.

Types of Performance Appraisal-

There are two types of performance appraisal systems which are commonly used in
organizations:
1. Close ended appraisal system
2. Open ended appraisal system.

1. Close-ended appraisal system- This system

commonly used in Government organizations and public

20
 enterprises, and a confidential report are submitted on the
performance of the employee in the organization. The main
shortcoming of this system is that an individual is not informed
about his/her inherent strengths and weakness and, therefore, is
not given an opportunity to respond to the assessment made on
him/her.

2. Open ended appraisal system- In this system, the performance of the

individual is discussed with him, and he is ranked in a five or ten point rating scale.
The company used this tool primarily for rewarding a good performer or for other
considerations like promotions. The main weakness of this system is that all the
employees are ranked in particular scale, and whereas the good performers are
rewarded, there is no concerted effort to motivate the average performer in
performing better. Another weakness of the grading system is that the appraisal may
turn out to be more subjective in nature due to insufficient data maintained on the
individual.

Six Steps of the Performance Appraisal Process-

The performance appraisal process is one that few look forward to.
However, understanding the process can help managers and employees
conduct a more fruitful appraisal. At the University of Texas at Dallas,
managers are taught that "A chief purpose of any performance appraisal
program is employee development. This goal is accomplished by helping
the employee to do a better job and by developing in the employee the
knowledge and skill to meet the future needs of the work unit and the
institution."

21
Establish a File

For managers to be effective and help employees develop skills and

capabilities, essential to begin the performance management process on
the employees first day. Create a file for each employee and record the
accomplishments, areas for improvement and regular feedback
throughout the year.

Provide Regular Feedback

Regular feedback should occur at least once each quarter and more
frequently if an employee needs encouragement or motivation.
According to the American Society for Clinical Laboratory Science, The
performance management process starts with employee planning and
ends with an evaluation of employee progress. Managers and employees
should meet to discuss planning and goals throughout the year. If
possible, formally sitting down with your supervisor or manager on a
quarterly basis is optimal. The process, at its best, is a collaborative one
which should add value for both the employee and the employer.
Employees thrive on feedback because it ensures they are performing
job duties and responsibilities according to the companys expectations.
The feedback can be given in a casual manner, provided the topic of the
feedback is suitable for a casual meeting. Always document any
feedback you provide to employees, even if is just to say.

Discipline Issues

Throughout the year, an employee may engage in behavior that

warrants disciplinary action. Your company procedure for addressing
discipline should include a requirement to document every disciplinary

22
action taken. All disciplinary issues and improvements are taken into
account during the annual performance appraisal meeting.

Management by Objectives

Management by objectives, or MBOs, is another step in the performance

appraisal process used for some employees who have defined goals and
steps to achieve each goal. These MBOs really should be reviewed
quarterly to track progress or redefine the goal if neither of you see
enough progress. MBOs are also particularly helpful to employees who
are on a professional career track within your business.

Conduct the Appraisal Meeting

As the time nears for scheduling the appraisal meeting, begin preparing
the performance appraisal document. Many companies have lengthy
forms that require managers to record relatively detailed information
about the employees performance in all areas of the job. Performance is
rated in areas such as job proficiency, interpersonal relationships,
communication skills and aptitude. Some employers consider employee
self-evaluations. In these cases, the employee should prepare her
comments about her performance during the past year. Both the
manager and the employee should feel comfortable during the appraisal
meeting. Tension will just make the meeting agenda much more difficult
and uncomfortable than it needs to be.

Follow Up Action

After the performance appraisal meeting, there will likely be follow up

matters such as discussing areas for improvement, establishing goals for
the next year and confirming the employee's salary or wage
increase. In addition, the manager and employee may schedule another
time to discuss irresolvable issues that arise during the performance
appraisal meeting.

23
 Methods of Performance Appraisal
It has classified into two groups:
1. Traditional Performance Rating
2. Result-Oriented Appraisal

1. Traditional Performance Rating Method-

A. Graphic Rating Scales method- In this method employee are rated
on a scale, usually from 1 to 10, on traits and/or behavior such as intelligence, neatness,
and quantity of work accomplished. The term used to define the oldest and most widely
used performance appraisal method. The evaluators are given a graph and asked to rate
the employees on each of the characteristics. The number of characteristics can vary
from one to one hundred. The rating can be a matrix of boxes for the evaluator to check
off or a bar graph where the evaluator checked off a location relative to the
evaluators rating.

B. Simple ranking method- the oldest and simplest method of

performance appraisal is to compare one man with all other man and place him in a
simple rank order. In this way ordering is done from the best to worst on their
perceived performances. The term ranking has been used to describe an alternative
method of performance appraisal where the supervisor has been asked to order his
or her employees in terms of performance from highest to lowest. The method is
both simple and natural but its disadvantages are:

1. It is highly subjective,

24
2. Comparison of the various components of a persons performance is not done.
People are compared as a whole,

3. The magnitude of differences in ability between ranks is not equal and different
position. For instance, the differences in ability between the fifth and sixth
individual may be much greater in absolute terms then the differences between the
sixth and seventh. In terms of ranks, however, the differences between these
individual is the same.

4. Its use is difficult in large groups when the rater cannot compare several people
simultaneously. As an answer to this problem the paired comparison method of
ranking has been evolved. In this method the rater compares each man in his groups
with every other man, with the final ranking of each worker determine by the
number of times he was judged better than the other. The number of comparisons
involved in this method is thus vary large and can be determined by the following
formula:

Number of comparison= N (N-1) /2, where N stands for the no. of man to be rated.

C. Forced choice method- s, This method combines rating with scoring

system and requires the evaluator to choose among descriptions of employee
behavior-scored according to a key. This appraisal method has been developed to
prevent evaluators from rating employees to high. Using this method, the evaluator
has to select from a set of descriptive statements that apply to the employee. The
statements have been weighted and summed to at, effectiveness index. In this
manner bias is removed from the appraisal process. In a research study, it was found
that the use of forced choices scale effectively eliminated the leniency error while the
use of a graphic scale format enabled bias to be introduced. There are certain
disadvantages of the forced-choice scaling, and because of these disadvantage its use
is not widespread.

25
D. Weighted Checklist method- This term used to describe a
performance appraisal method where supervisors or personnel specialists familiar
with the jobs being evaluated prepared a large list of descriptive statements about
effective and ineffective behavior on jobs. The method has the advantages of
requiring only a reporting of facts from the rater. Since the values assigned to
different statements do not appear on the list, the rater does not know how highly he
has rated a giving individual. The objections to this method are:

It is difficult to construct a good check-list,

A separate check-list is needed for each job because statements used in one
check-list to evaluate one category of workers cannot be used in another check-
list to evaluate other category of workers.

Since the rater does not know the value given to different statements, he may
resent the system as a whole and may not give it his whole-hearted support.

E. Critical incidents- This technique of performance appraisal was

developed by Flanagan and Burns. Under this procedure raters identify critical
positive and negative employees performance (Behaviorally anchored rating scales
can be derived from these). The term used to describe a method of performance
appraisal that made lists of statements of very effective and very ineffective
behavior for employees. The lists have been combined into categories, which vary
with the job. Once the categories had been developed and statements of effective
and ineffective behavior had been provided, the evaluator prepared a log for each
employee. During the evaluation period, the evaluator recorded examples of critical

26
behaviors in each of the categories, and the log has been use to evaluate the
employee at the end of the evaluation period.

F. Forced Distribution- The term used to describe an appraisal system

similar to grading on a curve. The evaluator had been asked to rate employees in
some fixed distribution of categories. One way to do this has been to type the name
of each employee on a card and ask the evaluators to sort the cards into piles
corresponding to rating.

G. Paired Comparison- The term used to describe an appraisal method for

ranking employees. First, the names of the employees to be evaluated have been
placed on separate sheets in a pre-determined order, so that each person has been
compared with all other employees to be evaluated. The evaluator then checks the
person he or she felt had been the better of the two on the criterion for each
comparison. Typically the criterion has been the employees over all ability to do the
present job. The number of times a person has been preferred is tallied, and the tally
developed is an index of the number of preferences compared to the number being
evaluated.

H. Field Review- When there is reason to suspect rater bias or when some
raters appear to be using higher standards than others, graphic ratings are often
combined with a systematic review process. The field review is one of several
techniques for doing this. The personnel officer meets small groups of raters from
each supervisory unit and goes over each employees rating with them to (a)
identify areas of inter-rater disagreement, (b) help the group arrive at a consensus,
and (c) determine that each rater conceives of the standards similarly.

This method is not widely used because supervisors generally what they consider
the staff interference. The process is also very time-consuming.

27
 I. Narrative or Essay Evaluation- The technique is very common for
appraising individuals for professional positions. In these method employees
performances are described in essays. This appraisal method asked the evaluator to
describe strengths and weaknesses of an employee's behavior. The biggest
drawback of this technique is the variability of account, in length and content.
Hence it is difficult to compare two of account essay appraisals. Some companies
still use this method exclusively, whereas in others, the method has been combined
with the graphic rating scale.

2. Result-Oriented Appraisal- The result-oriented appraisals are based on

the concrete performance target which are usually established by superior
and subordinates jointly. This procedure has been known as Management by
Objectives (MBO).

A) Management by Objectives (MBO) - According to the Dr. George

S. Odiorne, Management by objectives is a process whereby the superior and
subordinates managers of an organization jointly identify its common goals,
define each individuals major areas of responsibility in terms of the results
expected of him, and use these measures as guides for operating the unit and
assessing the contribution of each of its members. In other words, this appraisal
method has worked to eliminate communication problems by the establishment of
regular meetings, emphasizing results, and by being an ongoing process where
new objectives have been established and old objectives had been modified as
necessary in light of changed conditions. MBO in essence involves the setting out
clearly defined goals of an employee in an agreement with his superior. Carroll
and Tosi (1973), in an extensive account of MBO, note its following
characteristics:

The establishment of organizational goals

28
 The setting of individual objectives in relation to organizational goals.

A periodic review of performance as it relates to organizational goals

Effective goal-setting and planning by top management

Organizational commitment

Mutual goal-setting

Frequent individual performance reviews

Some freedom in developing means of achieving objectives.

The MBO has been designed to overcome certain inherent problems of traditional
appraisal systems. It really constitutes a new way of managing. Its major goal is to
enhance the superior-subordinate relationship, strengthen the motivational
climate, and improve performance. It helps to improve managerial performance
and effectiveness. It provides a workable framework to the manager within which
he can make decision which are in the best interests of the organization. The key
concepts of MBO are emphasis on results, participation, human relations, and a
regular review system. For the successful implementation of MBO, proper
planning and preparation are required. To achieve success with MBO, it is
necessary to have top managements full support and commitment, a realistic
time-frame for implementation, adequate training of people who would be
involved in the process, and a proper understanding of the role of MBO. The key
features of management by objective are as under:

1. Superior and subordinate get together and jointly agree upon the list of the
principal duties and areas of responsibility of the individuals job.

29
 2. The subordinate sets his own short term performance goals or targets in co-
operation with his superior.

3. They agree upon criteria for measuring and evaluating performance.

4. From time to time, as decided upon, the superior and sub-ordinate get together
to evaluate progress towards the agreed upon goals. At those meetings, new or
modified goals are set for the ensuring period.

5. The superior plays a supportive role. He tries, on a day to day basis, to help the
sub-ordinate achieve the agreed upon goals. He counsels and coaches.

6. In the appraisal process, the superior plays less of the role of a judge and more
of the role of one who helps the sub-ordinate attain the organization goals or
targets.

7. The process focuses upon result accomplished and not upon personal traits.

There are four main steps in MBO:

1. Define the job. Review, with the sub-ordinates, his or her key responsibilities
and duties.

2. Define expected results (sub-objectives). Here specify in measurable terms

what the person is expected to achieve.

3. Measure the results. Compare actual goals achieved with expected results.

4. Provide feedback, appraise. Hold periodic performance review meetings with sub-
ordinates to discuss and evaluate the latters progress in achieving expected results.

MBO has many benefits, since it:

30
 Provides a way for measuring objectively the performance of sub-ordinates.

Co-ordinates individual performance with company goals.

Clarifies the job to be done and define expectations of job accomplishment.

Improves superiors sub-ordinates relationships through a dialogue that takes

place regularly.

Fosters increased competence, personal growth and opportunity for career

development.

Aids in effective overall planning system.

Supplies a basis for more equitable salary determination especially incentive

bonuses.

Develops factual data a promotion criterion.

Stimulates self motions, self discipline and self controlled.

Serves as a device for integration of many management functions.

MBO has certain potential problems, as such:

It often lacks the support and commitments of top management.

Its objectives are often difficult to establish.

Its implementation can create excessive paperwork if it is not closely

monitored.

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 It concentrates too much on the short run at the expense of long-range
planning.

It may lead to excessive time-consuming.

Organizations are increasingly taking resource to newer initiatives for tracking

performance and measuring it against predetermined objectives, key results areas.

B. 360 Performance Evaluation-

The 360-degree evaluation is a common tool in human resource management.

Simply put, it is a mechanism for evaluating someone's performance based on
feedback from everyone with whom the individual comes in contact
supervisors, coworkers, partners, subordinates, the general public. It is a method
of collecting input from many sources in an employee's environment.

This can be a powerful tool. Each wants to know how we are doing our work.
This method of collecting evaluative input is an excellent source of motivation for
employees because it provides a truly honest assessment of how the employee and
her performance are viewed by a variety of constituents.

The 360-degree method uses confidential input from many people who can truly
respond to how an employee performs on the job. The supervisor and employee
meet to discuss the feedback received.

This type of feedback helps employees see themselves as others see them and

32
allows them to seriously examine their behavior. It can reveal areas in which
employees are performing particularly well and those areas in which there is room
for improvement. It provides information of which neither the employee nor the
supervisor may be aware. Specific input allows employees to adjust their
performance.

The most challenging aspect of the 360-degree evaluation is the evaluators' concern
about confidentiality. When implementing this type of evaluation, it's best to assure
other employees that what they share will remain strictly confidential. Likewise,
explain to each employee that he will be evaluated by many people, RSHR Services
using those who know his work best.

This review process is also helpful for the supervisor. It can provide a more
accurate assessment of an employee's performance and help eliminate accusations
of favoritism. The 360-degree process provides greater objectivity. And because
the feedback is submitted anonymously, it provides a supervisor with the most
unbiased and accurate information from which to draw performance RSHR
SERVICES.
Most people are not able to see clearly how their performance is either enhancing
the work situation for others or detracting from it. This performance evaluation
method can help reveal these areas and allow us to improve the way we do our
job, thereby creating greater harmony and better productivity in the workplace.
The 360-degree evaluation will help employees identify their strengths so they
can build on them at the same time it addresses their skill gaps. It is a process that
leads to continuous learning, team building, growing self-confidence and
improved productivity.

Sounds like a winning system, right? It can be, but your organization must be
ready to accept the change from the traditional method of employee evaluation.

33
 Your formal and informal leaders must buy in to this idea and see the value of its
adoption. Some questions you should ask yourself RSHR Services.ude the
following:

360-Degree feedback:

Increases self-knowledge
Encourages continuous learning
Stimulates individuals to enhance their strengths
Identifies areas that need development
Provides guidance for positive change
Supports coaching and mentoring initiatives

Benefits

May improves services to customers if they are able to offer feedback to the employee.
360 Degree Feedback offers a more complete picture of the employee's performance.
This feedback can provide guidance on skills that an employee may need to develop

How it is conducted:

1. Develop questionnaire A questionnaire used for 360 Degree Feedback typically

contains items that are rated on a 5 point scale. These items may be developed to
measure different dimensions of job performance (e.g., communication, teamwork,
leadership, initiative, judgment ...)

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2. Ensure confidentiality of participants Steps must be taken to ensure the
confidentiality of the feedback results. The confidentiality helps ensure that the results
are genuine.

3. Provide training/orientation Often the feedback process involves use of one or more
questionnaires, confidential information, and involvement from many different areas of
an organization. Therefore, training and orientation to the feedback process is needed to
facilitate a smooth feedback process. During this training/orientation, employees should
be informed of what 360 Degree Feedback is and why it is being implemented at your
organization.

4. Administer the feedback questionnaire Distribute questionnaire forms with

instructions.

5. Analyze the data Basic data analysis would RSHR Services.ude averages of ratings.
More complicated analyses may RSHR Services.ude item-analysis and/or factor-
analysis.

6. Develop and Distribute Results Feedback results should be shared with the
employee. It should not be mandatory that the employee share the results with their
supervisor.

Errors in Performance Appraisal

Differences in perceptions and value system influence evaluations. Individual rater

bias can seriously compromise the credibility of an appraisal. Some of the common
syndromes are:

1. Halo Effect- This is a tendency to let the assessment of a single trait influence
the evaluation of the individual on other traits too. For example, an employee
demonstrates high degree dependability and from this behavior, comparable
high degree integrity is inferred.

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 2. Horns Effect- This is a tendency to allow one negative trait of employee to
color the entire appraisal. This result in an overall lower rating then may be
warranted.

3. Leniency or Constant Error- Depending upon the appraisers on value

system which acts as performance of the employees. Some appraisers
constantly assign high values to all employees, regardless of merit. This is a
Leniency Error. The strictness tendency reverse situation, where all
individuals are rated too severely and performance is understated.

4. Central Tendency- This is the most common error that occurs when a rater
assigns mainly a middle range scores or values to all individuals under
appraisal. Extremely high or extremely low evaluations are avoided by
assigning average rating to all.

5. Spill-over Effect- This refers to allowing past performance to influence the

evaluation of present performance.

6. Personal Bias- Perhaps the most important error of all arises from the fact the
very few people are capable of objective judgment entirely independent of
values and prejudices.

Approaches to Performance Appraisals- There have been two prevalent approaches to

performance appraisal:
Traditional approach- This approach has also been known as the organizational or overall
approach. The traditional approach has been primarily concerned with the overall
organization and has been involved with past performance.
Purposes of Traditional Performance Appraisals

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Performance appraisal for evaluation using the traditional approach has served the
following purposes:

1. Promotion, separation, and transfer decisions

2. Feedback to the employee regarding how the organization viewed the employee's
performance

3. Evaluations of relative contributions made by individuals and entire departments in

achieving higher level organization goals

4. Criteria for evaluating the effectiveness of selection and placement decisions,

RSHR Services. The relevance of the information used in the decisions within the
organization.

5. Reward decisions, RSHR Services. Merit increases, promotions, and other rewards.

6. Ascertaining and diagnosing training and development decisions.

7. Criteria for evaluating the success of training and development decisions.

8. Information upon which work scheduling plans, budgeting, and human resources
planning can be used.

Two serious flaws in the traditional approach to performance appraisal exist. The flaws are:

Organizational performance appraisal is typically primarily concerned with the past

rather than being forward looking through the use of setting objectives or goals.

Performance appraisal is usually tied to the employees' salary review. Dealing with
salary generally overwhelmed and blocked creative, meaningful, or comprehensive
consideration of performance goals.

Developmental approach- This approach viewed the employees as individuals and has
been forward looking through the use of goal setting.
Developmental Performance Appraisal

37
 The developmental approach to performance appraisal has been related to
employees as individuals. This approach has been concerned with the use of
performance appraisal as a contributor to employee motivation, development, and
human resources planning. The development approach contained all of the
traditional overall organizational performance appraisal purposes and the following
additional purposes:

1. Provided employees the opportunity to formally indicate the direction and level of the
employee's ambition

2. Show organizational interest in employee development, which was cited to help the
enterprise retain ambitious, capable employees instead of losing the employees to
competitors.

3. Provided a structure for communications between employees and management to help

clarify expectations of the employee by management and the employee.

4. Provide satisfaction and encouragement to the employee who has been trying to perform
well.

Expectations of a Manager in doing a Performance Appraisal

The following is typically expected from company managers when doing performance
appraisals:

1. Translate organizational goals into individual job objective.

2. Communicate management's expectations regarding employee performance.

38
 3. Provide feedback to the employee about job performance in light of management's
objectives.

4. Coach the employee on how to achieve job objectives/requirements.

5. Diagnose the employee's strengths and weaknesses.

6. Determine what kind of development activities might help the employee better
utilize his or her skills improve performance on the current job.

Why Performance Appraisal often fails

Managers often resist (passively or actively)

May have limited contact with subordinate; may be poor at giving feedback

Subordinates poor at receiving feedback

Managers often view it as wasted paperwork, especially if nothing comes of their

efforts

Interfere with their "coaching" function they prefer

Managers fear the emotions that can be unleashed; may fear not being able to
defend ratings

To be very legally defensible a system would have these components:

Employee participation in establishing performance standards

Standards based on critical elements of job, clearly recorded in writing

Employee advised of critical requirements before the appraisal

System should not be based on interpersonal comparisons (eg. curve)

Performance appraisal done in writing at least annually

39
 Results tied to personnel decisions

Employees allowed to respond to charge orally and in writing

Appraisers must be provided training

Performance appraisal system evaluated and refined as necessary

The actual experience with Performance appraisal is not

encouraging
Employees are often less certain about where they stand after the interview.

Employees evaluated supervisors less favorably after the interview than before it

Few constructive actions or significant improvements result from interviews

Typical managers have limited contact with subordinates

Managers often resist conducting PA program

Improving the Design of the Appraisal System:

Uncouple Evaluation and Development: Many appraisal systems inadvertently
force the mixing of the roles of judge and helper. The open problem-solving
dialogue required for building a relationship and developing subordinates should be
scheduled at a different time than the meeting in which the supervisor informs the
subordinate about his/her overall evaluation and its implications for important
rewards.

Choose Appropriate Performance Data: The behavior rating scale, the critical-
incident methods, and various MBO techniques usefully guide the appraisal

40
 discussion toward reviewing specific task behaviors or accomplishments --
feedback which is both less threatening and more helpful to the person who wants
to improve performance. A comprehensive performance management system might
RSHR Services SERVICES.ude MBO and behavioral ratings--which are,
respectively, a means of managing what and how of employee task-related
behaviors.

Separate Evaluations of Performance and Potential: Current performance, as

measured by the attainment of results, is not necessarily correlated with potential
for promotion. Separation of assessments of performance and potential militates
against the superior's averaging his/her unconscious assessment of these qualities
and increases the likelihood of a constructive, non-defensive dialogue.

Recognize Individual Differences in System Design: Persons differ in their needs

for performance evaluation and development, e.g., persons high in "nAch" may
require more frequent performance feedback. Within permissible bounds, appraisal
policies should permit managers to use different methods depending on the
particular employee being appraised.

Upward Appraisal: One way to mitigate the inhibitions of the superior-subordinate

power imbalance is to ask subordinates to appraise their supervisor; this allows
influencing their environment, and may increases motivation to enter the appraisal
process openly; provides the supervisor an opportunity to "model" the non-
defensive behavior essential to a real dialogue.

Self-Appraisal: Experiences with self-appraisal suggests that it often results in

lower ratings than the supervisor would have given. Hence, the RSHR SERVICES.
fusion of self-appraisal before their coaching or evaluation interview is likely to
result in a more realistic rating and a greater acceptance of the final rating by both
rate and rater.

41
Ways to ensure smooth Performance Appraisals
Good Communication- At the core of performance appraisals lie the need for healthy
communication between managers and employees. So spending time to dissolve
performance-related problems than evaluating performance at the end of the year is
what works well at the time of appraisals. So when performance of subordinates is good
through a year and it is communicated properly to the team leaders during the year, the
appraisal is easy to do and comfortable for everyone concerned.

Appraisals as Partnership- It is not possible for managers to constantly monitor what

team members are doing and to do a fair performance appraisal, it has to be treated as a
two-way flow of information between subordinates and superiors.

Comparing Employees-Many managers use the classic tool of pitting team members
against each other. This is done to ensure everybody tries to deliver his or her maximum
output. But this can prove to be a negative technique, as the focus has to be on fostering
strong team spirits to enhance collective performance.

Focus on Positivity, Not Flaws-Everyone is interested in improvements. So appraisals

have to revolve around parameters for improvements in performance. Managers need to
desist from picking out flaws in individuals. To get the best out of people, team leaders
need to ensure that subordinates trust them and there is a high level of motivation that
drives the collective effort.

Linking Salary and Performance- All employees need to know how they fared during a
year regardless of whether their salary is affected by their performance appraisal or not.
It is a healthy practice and it need not be essentially linked with a salary hike. So an
employee who may have hit a salary ceiling also needs a performance appraisal to
know how he can improve his productivity even if this does not affect his compensation
package anymore.

42
Rating Tools- All the managers who use rating system need to understand that it is a
subjective mechanism and though it may be a faster way of doing performance
appraisals but it needs to be handled carefully.

Measuring Essential Factors- Evaluating the least important things with respect to
doing a job is one of the easiest errors committed by managers. What is difficult to
evaluate but critical are factors like overall quality of service that will get and keep
customers. So managers need to focus on critical issues and factors that affect the role
performed by an individual rather than superficial behavioral issue.

Avoiding Appraisals- Managers need to display a sense of sincerity and commitment to

the process of performance appraisals to ensure subordinates feel the same way.
Canceling or postponing appraisals is not in the best interest of either an individual or
the larger teams.

Surprising Employees- Poor communication between managers and subordinates is a

sure way to ensure a disastrous performance appraisal process. This must be avoided at
all costs.

Seeing Individuals & Tasks Independently- Many managers believe that all
subordinates and all functions can be evaluated in exactly the same way using the same
procedures. This can have adverse results for performance appraisals.
What needs to be understood is that each team member and role requires different
treatment and is influenced by different factors. So some subordinates may need
specific feedback while others may need higher communication. The bottom line is
simple: performance appraisals are not about finding flaws in individuals but
communicating expectations of improved performance. It requires a commitment from
both managers and subordinates to identify and implement such mechanisms and
processes that help achieve high business results for the company as well as maximize
individual performance.

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Rater errors

Mistakes made by raters are a major source of problems in performance appraisal. There is
no simple way to completely eliminate these errors, but making raters aware of them
through training is helpful. Rater errors are based on the feelings and it has consequences at
the time of appraisal.

Varying standards

Problem: When a manager appraises (evaluates) his or her employees and the
manager uses different standards and expectations for employees who are
performing similar jobs.

Example: A professor does not grade the exams of all students in the same
standards, sometimes it depends on the affection that the professor has towards
others. This affection will make professor give students higher or lower grades.

Solution: The rater must use the same standards and weights for every
employee. The manager should be able to show coherent arguments in order to
explain the difference. Therefore, it would be easier to know if it is done,
because the employee has done a good performance, or if it because the
manager perception is distorted.

Regency effects

Problem: When the manager, according only to the last performance, that has
been quite good, rates higher.

Example: When a professor gives the course grade based just in the
performance of the student, only in the last week.

Solution: In order to avoid that, the manager should use some methods as
documenting both in positive and negative aspects.

Primacy effects

Problem: When the person who evaluates gives more weight according to
information the manager has received first.

Example: It could be a silly example. When we are watching a TV quiz and

conquest have to remember a list of things, they only remember the first ones.
This is applying also in remembering human performance.

44
 Solution: performance. When manager has to take some decision, is better not
to do it according to what he or she remembers. It is better to be based on real
actions that have happened and are recorded.

Central Tendency

Problem: When the manager evaluates every employee within a narrow range,
as the average because he or she is dismissing the differences in the
performance that employees have done.

Example: When a professor because the average of the class tends to grade
harder. Therefore, if the performance of the class average is quite high, the
professor will evaluate them more highly. On the contrary, if the average of the
class is lower, he or she would appraise lower.

Leniency

Problem: Rating of all employees is at the high end of the scale.

Example: When the professor tends to grade harder, because the average of the
class.

Strictness

Problem: When a manager uses only the lower part of the scale to rate
employees.

Example: When the professor tends to grade lower, because the average of the
class.

Solution: try to focus more on the individual performance of every employee

regardless the average results.

Rater Bias

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 Problem: Raters when the manager rates according to his or her values and
prejudices which at the same time distort (distortional) the rating. Those
differentiations can be made due to the ethnic group, gender, age, religion, sex,
appearance...

Example: Sometimes happen that a manager treats someone different, because

he or she thinks that the employee is homosexual.

Solution: If then, the examination is done by higher-level managers, this kind of

appraising can be corrected, because they are supposed to be more partial.

Halo effect

Problem: When a manager rates an employee high on all items because of one
characteristic that he or she likes.

Example: If a worker has few absence but the supervisor has a good
relationship with that employee, the supervisor might give to the employee a
high rating in all other areas of work, in order to balance the rating. Sometimes
it happens due to the emotional dependability based on the good relationship
they have.

Solution: Training raters to recognize the problem and differentiating the person
with the performance they do.

Horns effect

Problem: This is the opposite to the Halo effect and Horns effect occurs when a
manager rates an employee low on all items because of one characteristic that
he or she dislikes.

Example: If a worker performs well but at certain times, he or she loves telling
jokes, but his or her supervisor dislikes jokes, the supervisor might give the
employee a lower rating in all other areas of work. Sometimes it happens when
they do not have a close relationship and manager does not like the employee.

Solution: Is the same as in the Halo Effect. Training raters to recognize the
problem and differentiating the person with the performance they do.

Contrast

46
 Problem: The tendency to rate people relative to other people rather than to the
individual performance he or her is doing.

Example: At school, if you are sat down where all the chatty people are and you
are silent but you do not pay attention and you do not do your homework,
because you are drawing; when teacher gets angry with the group, you might be
excluded of the bad behavior they have just because you are silent; but not
because you are doing a good performance. Therefore, according to the group,
you are not that chatty, but you are either doing the proper performance.
However the rater will only get the idea that your behavior is not as bad as
other, thus, you will be rate higher.

Solution: The rating should reflect the task requirement performance, not
according to other people attitude.

Similar-to-Me / Different-from-Me

Problem: Sometimes, ratters are influenced by some of the characteristics that

people show. Depending if those characteristics are similar or different to
ratters' one, they would be evaluated differently.

Example: A manager with higher education degree might give subordinates

with higher education degree a higher appraisal than those with only bachelors
degrees.

Solution: Try to focus on the performance the employee is doing regardless the
common characteristic that you have.

Sampling

Problem: When the rater evaluates the performance of an employee relying only
on a small percentage of the amount of work done.

Example: An employee has to do 100 reports. Then, the manager takes five of
them to check how the work has been done, and the manager finds mistakes in
those five reports. Therefore the manager will appraise the work of the
employee as a "poor" one, without having into account the other 95 reports that
the manager has not seen, that have been made correctly.

Solution: To follow the entire track of the performance, not just a little part of it.

47
 REASEARCH METHODOLOGY

Problem:
This study was undertaken to determine the satisfaction level of the employees with their
Performance Appraisal Technique. The research literature says that 360 degree performance
evaluation technique has been proved not to be very effective (according to Watson Wyatt's
2001 Human Capital Index (HCI)).

Rationale of problem:
The following are the rationale behind the problem.
360-degree feedback as a performance appraisal technique is found to be not
very effective.
Single performance appraisal systems are found to be ineffective.

Variable:
In this study, the main variable was performance appraisal. To know the effectiveness of
this technique, the present study was designed to compare and measure the satisfaction
level of the employees with regards to the Performance Appraisal Technique used between
these three companies.

Objective:

48
The main objective of this research is to study and compare the Performance Appraisal
Technique and measure the satisfaction level of the employees with the Performance
Appraisal Technique RSHR SERVICES..

Scope of the Survey: - This project was undertaken to know the extent to
which the employees of RSHR SERVICES., is satisfied and happy with their performance
appraisal system and environment which exists in that organization.

Research Design
A Research design is purely and simply the framework or plan for a study that guides the
collection and analysis of data. The survey research was used in this project, because
employees feedback was necessary for obtaining the data.
Since the project is being conducted in RSHR SERVICES. On satisfaction level, in the
hope of new findings, we can RSHR SERVICES.ude that this is an Exploratory type of
research.

Area of Information
The study was to be done on certain specific area of information. These could be classified
into:
Organizational System
Supervision
Role Clarity

Psychological Tool
The following psychological tool used in this study:
Employees Performance Appraisal Satisfaction Level Questionnaire (Investigated 2012).
The survey research was used in this project, because employee feedback was necessary for
obtaining the data.

49
Sample Size: The survey was conducted in the organization, 100 respondents from each
organization. All these respondents were from the executive level of the organization.
The sampling unit is only the employees of the organization. Sample unit consists of one
employee per questionnaire. This survey was done inside the organization.

Precautions:
The sampling used for this study was a simple random sampling method.
The questionnaire was filled by directly meeting the employees of the
organizations. All the questions were answered by the respondents.

50
 CHAPTER -II

COMPANY PROFILE

We provide HR Services, HR Training and Manpower, Compliance Services with

an aim to provide value aided service to employers with in-depth understanding of
requirements. We Always Invites HR Professional / Fresh MBA HR /Pursuing
MBA/Graduates/PG for HR Practical Training Classes with Real Time Exposure.
We are having dedicated teams for each client organization. With right combination
of people, process, knowledge sharing and technology we provide cutting edge,
outsourcing and Training solutions. We spend time with every candidate in person,
to understand better about their skills and realize goals, then guide them towards the
suitable and best job within our client.
Presentations/Demonstration/Practical of concepts.

Handouts/Assignments/Real-time Exposure to work on Clients.

Incepted with a broader focus on delivering scalable solutions to maintain

consistency in providing quality training and placement solutions, we, at RSHR
Services are competent and professionally proficient training & development
company. Having an expert trainer with an unmatched professionalism and

51
expertise in providing quality training, we have proven best to our words. Several
students have gained excellence in the domains they were striving to reach through
our quality training.

VISION AND MISSION:

We aspire to apply excellence, candor and sincerity in our efforts to empower our
generation with knowledge and diligence to master corporate standards.
Learner's satisfaction is ensured through, best mix of desirable sincerity that our
professionals are a way ahead with. Satisfaction of learner is all what we seek. We
tend to provide individual focus to each of our learner to recognize a career with a
fusion of skills knowledge and attitude.

Satisfaction of RSHR Services India learner's is our goal and we aim to make
sincere efforts in providing best results.

Our Services:-
HR Practical Training
HR Audit Services
HR Payroll Services
Out Sourcing Services
Compliance Services (ESIC, PF, BONUS, Etc.)
Tax Consultant

HUMAN RESOURCE PRACTICAL TRAINING-

52
Module 1- Recruitment and Selection

Recruitment Needs Importance and Types (External, Internal and

Head Hunting).
How vacancy created in any organization.
Recruitment and Selection Cycle.
Sourcing, Screening and Short listing of desired candidates by
using different job portals like Timesjob, Naukri, Shine.com and
other free job portals.
How to write Job Description.
Joining Formalities for a new employee.
Induction and Orientation Training.
Exit Formalities, Full and Final Settlement.

Module 2 Statutory and Legal Compliance

ESIC Act About Act, Applicability, Contribution Details from

Employee and Employer, Generate Online Challan, Benefits, Forms
and their usage.
PF Act About Act, Applicability, Contribution details from
Employee and Employer, Generate Online Challans and Returns,
Forms and their usage.
Bonus Act About Act, Applicability, Bonus Sheet Preparation,
Bonus and Ex-gratia, Forms and their usage.
Gratuity Act About Act, Applicability, Gratuity Amount
Calculation, Forms and their usage.
Minimum Wages Act About Act, Applicability, How to find
Current Minimum Wages, Forms and usage.

53
 Shop and Establishment Act About Act, Applicability, Forms
and usages.

Module 3 Payroll Processing

Salary Structure.
Various Allowances like Basic, DA, Food Allowances, CCA, Special
Allowances, Medical Allowances, Conveyance Allowances, Night
Shift Allowances etc.
Salary Sheet Preparation.
Salary Slip Preparation.
Calculation of Net Salary, Gross Salary and CTC.
Attendance Register Preparation.
Leave Management System and Leave Adjustment Details.
Leave Register Preparation.
Journal Voucher (JV) Preparation.
Various Deductions from Salary like TDS, Loan and Advance, PF,
ESIC, Professional Taxes, Labor Welfare Fund etc.
Loan and Advance Register Preparation.

Module 4 TDS and Tax Slab

Tax Slab Process.

54
 Calculation of Income Tax for Salaried Men, Women, and Senior
Citizens.
Tax Exemptions & Rebate under Different Sections of Income Tax
Act (Section 80 C, 80D, 80DD, 80E, 80U, Conveyance Allowances,
HRA etc. ).
Different Form used for TDS (Form 16, 24Q, etc.).
VAT
Professional Taxes and LWF.

Module 5 Computer Lab Session

HR MIS Report generation.

Usage of Formula and Functions of MS Excel Like V-lookup, H-
lookup, Split and Freeze Panes, IF, Count if, Auto & Advance Filters
etc.
Pivot Tables.
PF and ESIC Excel Report Preparation.
Salary Slip Design.
Attendance Sheet Preparation in Excel.
Leave Register, Loan & Advance Register preparation in Excel etc.

55
Module 6 Contract Labor (Regulation and Abolition)
Act 1970 & Factory Act 1948

Contract Labor (Regulation and Abolition) Act 1970 Act,

Applicability, Registration and Licensing process, Forms and their usage, Various Registers
to be maintained.

Factory Act 1948 About Act, Applicability, Working Hours, Forms and Registers to
be maintained, Health and Safety, welfare etc.

Module 7 Organizational Development, PMS, Appraisals,

Employee Grievances

PMS, Its Use, Importance and Benefit.

Various Steps in PMS.
KRA, KPA and KPI.
How to Monitor Performance.
360 Degree Appraisal Methods.
Training and Development.
Why Training is Important.
Organizational Development.
Disciplinary Actions and misconduct.
Learn about Wrongful Termination and Right Termination Process.
Code of conduct and Misconduct.
Sexual harassment and Visakha Guidelines.

56
Module 8 Interview and Personality Development Session

HR Interview cracking techniques.

Types of HR Interview Questions.
Negotiation Skills.
Dressing, Personal Hygiene, Proper Sitting, and Eye Contact
techniques.
Effective Communication and Personality Development.
Learn how taking techniques to final a candidate.
Group Interview.
Group Discussion.

HR ADUIT SERVICES:-

HR Compliance Audit Services

A compliance audit from HR Works is an excellent way to protect your business and ensure
compliance. We will conduct an independent analysis of your organizations personnel
documentation, benefits administration, record keeping and human resources practices,
auditing for compliance, efficiencies, and best practices.
HR Compliance Services Audit Process

A pre-audit checklist will be provided to you with a list of documents we will

review during the audit.

An HR Works Consultant will meet with you onsite with the appropriate
representative(s) of your company to conduct the HR Audit.

57
 At the completion of this analysis, we will provide a written report to your
company. This report will outline recommendations for strengthening the HR
function, prioritize those recommendations, and provide information to substantiate
the recommendations. We will also provide you with a toolkit to assist you in
implementing recommendations.

An HR Works Consultant will conduct a follow up meeting to review the results of

the audit with the appropriate personnel.

What areas does the Compliance Audit cover?

Recruitment and Screening

Job Offer and New Hire Process

Training

Orientation

Job Descriptions

Employee Handbook

Performance Feedback

Termination Practices

Wage Payments and Payroll Deductions

58
 Exempt and Non-Exempt Classifications

Employee versus Independent Contractor Status

Recording and Reporting Hours Worked

Meal and Rest Periods

Overtime

Commission Agreements

Leave Management

Benefits Practices

Equal Employment Opportunity

Recordkeeping Requirements

Personnel File s

OSHA Reporting

Posting Requirements

Safety Issues

HR PAYROLL SERVICES:-
RSHR SERVICES provides you with a full-fledged payroll solution that reduces your
processing costs while ensuring accurate, streamlined and consistent execution of your
payroll and compliance needs. Starting from payroll processing to tax proof management,
expense management, leave/absence management, client self service, employee self

59
service, query management and reports & analytics are offered as managed payroll
services. Here are some of the key highlights of our services.

Payroll processing

In addition to keeping up with constantly changing regulations, withholding rates and

government forms, payroll processing is a time-consuming and costly task for most
businesses. Let RSHR SERVICES take care of the heavy lifting for you Payroll
processing and administrative functions that don't necessarily add to your bottom line. Our
payroll processing services include.

Support through the entire employee life-cycle, from date of joining to exit.

Cost effective and timely payroll processing.

Delivery of bank advice statements and customized MIS reports.

Payroll statutory compliance

RSHR SERVICES is equipped with world class tools to help you strictly adhere to the
requirements of payroll compliance legislations, Our services include.

Generating statutory reports which include preparation and filing of PF forms,

challans and inspections.

Remittance of taxes as per the respective local statutory norms.

Preparing and submitting ESI wages and assisting on audits and inspections.

60
Reports and analytics

Our payroll analytics tool is customizable to fit a company's specific needs and it provides
secure, web based access to the labor and workforce data required to make sound business
decisions. Our payroll analytics tool provides

Employee pay/labor distribution details.

Joining and separation trends.

Loan & recovery statements.

Employee turnover and retention information.

See more at: http://www.RSHR Services. in/payroll-

services/services#sthash.HR0ibJkK.dpuf

TAX CONSULTANTS SERVICES

Direct taxation
Direct taxation direct tax is the tax that is paid directly to the government by the persons on
whom it is imposed. It cannot be shifted onto others. The best examples of direct taxes are
income tax and property tax. Direct tax is often accompanied by a tax return filing by the
taxpayer.
Under direct taxation we provide tax consultancy services in the following areas:
Direct tax services
Fringe benefit tax
Double taxation avoidance agreements
International taxation
Tax consultancy services for corporate clients

61
With complete functional know how of ERP (sap/ coda/ oracle etc), undertake direct tax
services for corporate clients. Our tax services for corporate clients include:
Day-to-day tax matters that include replying to various tax notices and providing necessary
tax support on regular tax matters.
Management of tax records and reports in both soft and hard files including documentation
as per sox.
Tax compliance that includes advance income tax and fringe benefit tax (fbt) calculations
and deposits, TDS compliance and filing of returns.
Compilation of tax details for audit and support to the auditors.
We provide all important information to statutory auditors or management auditors in
relation to tax matters.
We support in the compilation of transfer pricing documentation and certification.
We also guide in the compilation of corporate tax returns such as income tax, wealth tax
and fbt, and also it e-filing with the revenue department.
We provide support in the areas of pan, tan and online tax credits view also.
We provide tax reporting on defined frequencies such as monthly, quarterly, annually to
parent company according to their formats.
Compilation of various details for tax assessment purposes such as scrutiny and appellate
level for income tax and transfer pricing.

Personal taxation consultancy services

We offer personal taxation consultancy services like personal tax planning, personal tax
consultancy services, tax compliance and advisory services that cover the following:

Personal tax consulting.

Personal tax services compliances that includes compiling and filing of tax returns.

62
We provide review and assistance in advance tax computations.
Representation before the tax authorities related to tax assessments, refunds or other
matters.
We guide in getting various tax registrations that includes permanent account number
(pan).
Management of tax records in soft and hard forms.
Advisory on tax issues like capital gains/ loans/ tax investments etc.

Tax compliances
We undertake regulatory compliances such as statutory returns and documents
preparations, compilations and e-filings with the revenue authorities that include the
following:
Tax audits as per the provisions of the indian income tax laws.
We help in the preparation and review of corporate tax returns to ensure the compliances
with the income tax act, 1961 and the various judicial pronouncements.
We guide for the preparation and review of the withholding tax (tds) returns as per the
provisions of the income tax act, 1961.
Seeking advance rulings.

INTRODUCTION FOR THE STUDY

1. The aim of the study is to find whether the grievance handling mechanism ensures
that employees problems are recognized and appropriately reviewed in a prompt
and timely manner.

63
2. The grievance mechanism acts as a foundation for a harmonious and healthy
relationship between employee and employer.

3. The grievance mechanism ensures a fair and just treatment of employees concerns
and prompt resolution of grievances without discrimination, coercion, restraint or
reprisal against any employee who may submit or be involved in a grievance.

CHAPTER-III

64
 NEED FOR THE STUDY

A performance appraisal (or) performance review is a method by which the job

performance of an employee is evaluated (Generally in terms of quality, quantity, cost &
time) typically by the corresponding manager (or) superior. It is a part of guiding and
managing career level. It is a process of obtaining, analyzing and information about the
relative worth of the employee to the organization.

Performance appraisal is needed in every organization at every hierarchy level to

assess the performance of each and every employee in the work spot .Performance
appraisal is a method which highlights the employee needs and opportunities for personal
growth and development. Performance appraisal is essential to understand & improve the
employees performance through human resources development (HRD). In fact,
performance appraisal is the basis for HRD. It was viewed that performance appraisal was
useful to decide upon employee promotion/ transfer, determinate on & the like. But the
recent developments in human resources management indicates that performance appraisal
is the basis for employee development, it the indicates the level of desired performance
level, level of actual performance and the gap between these two. This gap should be
bridged through human resource development technique like training, executive
development etc.
.

OBJECTIVES OF THE STUDY

1. To study different performance appraisal methods & techniques.

65
2. To portray the profile of beverages industry with a special focus on RSHR Services.

3. To study the performance appraisal system for employees in RSHR SERVICES

4. To elicit the opinion of employee of RSHR SERVICES regarding the existing system of
performance appraisal.

5. To offer useful suggestions for improving methods of performance appraisal in the

organization.

RESEARCH METHODOLOGY

RESEARCH DESIGN:

66
Research Design refers to "framework or plan for a study that guides the collection and
analysis of data". A typical research design of a company basically tries to resolve the
following issues:

a) Determining Data Collection Design

b) Determining Data Methods

c) Determining Data Sources

d) Determining Primary Data Collection Methods

e) Developing Questionnaires

f) Determining Sampling Plan

(1) Explorative Research Design:

Explorative studies are undertaken with a view to know more about the problem. These
studies help in a proper definition of the problem, and development of specific hypothesis
is to be tested later by more conclusive research designs. Its basic purpose is to identify
factors underlying a problem and to determine which one of them need to be further
researched by using rigorous conclusive research designs.

(2) Conclusive Research Design:

Conclusive Research Studies are more formal in nature and are conducted with a view to
eliciting more precise information for purpose of making marketing decisions.

These studies can be either:

a) Descriptive or

b) Experimental

Thus, it was mix of both the tools of Research Design that is, Explorative as well as
Conclusive.

67
SAMPLING PLAN:

Sample Size = 50 Employees

Duration = 6 Weeks

DATA COLLECTION
Data Sources

68
 1. Secondary Data through Internet

2. Primary Data through Questionnaire

3. Contact Method

4. Personal Interaction

DATA PRESENTATION AND ANALYSIS:

1 Pie Diagrams

69
DATA ANALYSIS AND INTERPRETATION

Duration for which the respondent has been working in RSHR SERVICES..

This question was asked to the employees working in RSHR SERVICES. to find out the
duration for which they have been working in the organization, based upon which we can
know if the employees are satisfied with their job in the company or not.

70
Table 1: Duration of work period in RSHR SERVICES..

Particulars No. of respondents Percentage of respondents

0-1 yrs 3 3%
1-5 yrs 55 55%
5-10 yrs 25 25%
10+ yrs 17 17%
Total 100 100%

Chart 1: Duration of work in RSHR SERVICES..

0-1 yrs 1-5 yrs 5-10 yrs 10+ yrs

17% 3%

25% 55%

3 percent of the respondents are dealing with RSHR SERVICES. for less than a year. 55
percent of the respondents are dealing in RSHR SERVICES. from 1-5 yrs. 55 percent of the
respondents are dealing in RSHR SERVICES. from 5-10 yrs. 25 percent of the respondents
are dealing in RSHR SERVICES. for over 10 yrs.

Extents of satisfaction in setting of goals/objectives in the beginning of the year-

71
This question was asked to the employees of RSHR SERVICES. To find out the extents of
satisfaction of the employees in setting of goals/objectives in the beginning of the year to
know if they are being give opportunities to express their views.

Table 2: Extent of satisfaction

Particulars No. of respondents Percentage of

respondents
Very satisfied 63 63%

72
Satisfied 30 30%
Dissatisfied 7 7%
Total 100 100%

Chart 2: Extent of satisfaction.

Very satisfied Satisfied Dissatisfied

7%

30%
63%

63 percent of the respondents are very satisfied in setting their goals and objectives
in the beginning of the year. 30 percent of the respondents are satisfied in setting their goals
and objectives in the beginning of the year. 7 percent of the respondents are dissatisfied in
setting their goals and objectives in the beginning of the year.

Rating of PA strategies and programs of the company-

73
This question was asked to the employees of RSHR SERVICES. To rates the standards of
various PA strategies and programs that take place in the organization.

Table 3: Rating of the PA strategies.

Particulars No. of respondents Percentage of respondents

Good 70 70%
Average 30 30%
Bad 0 0%
Total 100 100%

Chart 3: Ratings of PA strategies.

Good Average Bad

30%

70%

70 percent of the respondents rate the Performance Appraisal strategies as good. 30 percent
of the respondents rate the Performance Appraisal strategies as average. None of the
respondents rates the Performance Appraisal strategies as bad.

Performance Appraisal strategies are fair and objective.

74
This question was asked to the employees to know if the performance appraisal strategies
are fair and objective to the employees.

Table 4: PA strategies are fair or not.

Particulars No. of respondents Percentage of respondents

Yes 84 84%
No 16 16%
Cant say 0 0%
Total 100 100%

Chart 4: PA strategies are fair or not.

Yes No Cant say

16%

84%

84 percent of the respondents say that the Performance Appraisal strategies are fair and
objective. 16 percent of the respondents say that the Performance Appraisal strategies are
not fair and objective. None of the respondents are there who cant say anything.

It is necessary to appraise an employee.

75
This question was asked to the employees to know how important it is to appraise an
employee.

Table 5: Necessity to appraise an employee.

Particulars No. of respondents Percentage of respondents

Yes 100 100%
No 0 0%
Total 100 100%

Chart 5: Necessity to appraise an employee.

Yes No

100%

100 percent of the respondents say that it is necessary to appraise an employee. None of the
respondents says that it is necessary to appraise an employee.

There is clarity in what is expected from the employee.

76
This question was asked to the employees to know if they are made clear on what is
expected of them so that they can work accordingly.

Table 6: Clarity in what is expected from the employee.

Particulars No. of respondents Percentage of respondents

Yes 100 100%
No 0 0%
Total 100 100%

Chart 6: Clarity in what is expected from the employee.

Yes No

100%

100 percent of the respondents say that they are clear with what is expected of them. None
of the respondents say that they are not clear with what is expected of them.

Feedback is given to the Management Cadre Staff for the task accomplished by them.

77
This question was asked to the employees to know if they are provided with proper
feedback for the task they accomplish, based upon which they can work better in future.

Table 7: Feedback is given to MCS.

Particulars No. of respondents Percentage of respondents

Yes 62 62%
No 38 38%
Total 100 100%

Chart 7: Feedback is given to MCS.

Yes No

38%

62%

62 percent of the respondents say that the feedback is given to the MCS for the task
accomplished by them. 38 percent of the respondents say that the feedback is not given to
the MCS for the task accomplished by them.

Suggestions and innovations are rewarded.

78
This question was asked to the employees to know if they are motivated by accepting their
suggestions and innovations in the form of rewards.

Table 8: Suggestions and innovations are rewarded.

Particulars No. of respondents Percentage of respondents

Yes 35 35%
No 65 65%
Total 100 100%

Chart 8: Suggestions and innovations are rewarded.

Yes No

35%

65%

35 percent of the respondents say that their suggestions and innovations are rewarded. 65
percent of the respondents say that their suggestions and innovations are not rewarded.

Supervisors take interest in sharing an employees personal concern.

79
This question was asked to the employees to know if the employees problems are dealt
well by their supervisors so that their morale increases and they are satisfied with their job.

Table 9: Supervisors share an employees personal concern.

Particulars No. of respondents Percentage of respondents

Yes 72 72%
No 28 28%
Total 100 100%

Chart 9: Supervisors share an employees personal concern.

Yes No

28%

72%

72 percent of the respondents say that the supervisors take interest in sharing their personal
concern. 28 percent of the respondents say that the supervisors do not take interest in
sharing their personal concern.

Annual increments/promotions are based on performance.

80
This question was asked to the employees to know if the annual increments/promotions are
based on their performance or not.

Table 10: Increment & promotions based on performance.

Particulars No. of respondents Percentage of respondents

Yes 82 82%
No 15 15%
Cant say 3 3%
Total 100 100%

Chart 10: Increments & promotions based on performance.

Yes No Cant say

3%
15%

82%

82 percent of the respondents say that the annual increments/promotions are based on their
performance. 15 percent of the respondents say that the annual increments/promotions are
not based on their performance. 3 percent of the respondents cant say or their answers are
inapplicable.

Extent of satisfaction in interdepartmental teamwork.

81
This question was asked to the employees to know the extent of satisfaction in
interdepartmental teamwork based on which their effectiveness in work can be known.

Table 11: Satisfaction in inter departmental team work.

Particulars No. of respondents Percentage of respondents

Very satisfied 28 28%
Satisfied 50 50%
Dissatisfied 22 22%
Total 100 100%

Chart 11: Satisfaction in inter departmental team work.

Very satisfied Satisfied Dissatisfied

22%
28%

50%

28 percent of the respondents are very satisfied with interdepartmental teamwork. 50

percent of the respondents are just satisfied with interdepartmental teamwork. 22 percent of
the respondents are dissatisfied with interdepartmental teamwork.

Extent of help of training and development programs in improving employees

performance.

82
This question was asked to the employees to know how far the training and development
program is helping the employees to learn and work better.

Table 12: Extent of help of training and development programs in improving

employees performance

Particulars No. of respondents Percentage of respondents

To great extent 22 22%
To some extent 70 70%
To very little extent 8 8%
Total 100 100%

Chart 12: Help of training and development programs in improving employees

performance

To great extent To some extent To very little extent

8%
22%

70%

22 percent of the respondents say that the training and development programs help to a
great extent to improve their performance. 70 percent of the respondents say that the
training and development programs help to some extent to improve their performance. 8
percent of the respondents say that the training and development programs help to a very
little extent to improve their performance.

83
Performance Appraisal System is used in job rotation.

This question was asked to the employees to know the extent of use of performance
appraisal system in job rotation.

Table 13: Performance Appraisal System is used in job rotation

Particulars No. of respondents Percentage of respondents

Mostly 12 12%
Partially 88 88%
Nil 0 0%
Total 100 100%

Chart 13: Performance Appraisal System is used in job rotation

Mostly Partially Nil

12%

88%

12 percent of the respondents say that performance appraisal system is mostly used in job
rotation. 88 percent of the respondents say that performance appraisal system is partially
used in job rotation. None of the respondents say that performance appraisal system is not
at all used in job rotation.
Extent of the purpose of performance appraisal system being fulfilled.

This question was asked to the employees to know how far the performance appraisal
system is actually helping them in their work.

84
 Table 14: The purpose of performance appraisal system being fulfilled

Particulars No. of respondents Percentage of respondents

Completely 65 65%
Partially 35 35%
Total 100 100%

Chart 14:Purpose of performance appraisal system being fulfilled

Completely Partially

35%

65%

65 percent of the respondents say that the purpose of performance appraisal is completely
fulfilled. 35 percent of the respondents say that the purpose of performance appraisal is
partially fulfilled.

RSHR SERVICES. always strives for continuous individual improvements.

This question was asked to the employees to know how far they agree with the fact that
RSHR SERVICES. Always strives for continuous individual improvements.

85
Table 15: RSHR SERVICES. Always strives for continuous individual improvements
Particulars No. of respondents Percentage of respondents
Strongly agree 22 22%
Agree 58 58%
Disagree 15 15%
Strongly disagree 5 5%
Total 100 100%

Chart 15: RSHR SERVICES. Always strives for continuous individual

improvements
Strongly agree Agree
Disagree Strongly disagree

5%
15% 22%

58%

22 percent of the respondents strongly agree that RSHR SERVICES. Always strives for
continuous individual improvements. 58 percent of the respondents agree that RSHR
SERVICES. Always strives for continuous individual improvements. 15 percent of the
respondents disagree with RSHR SERVICES. Always strives for continuous individual
improvements. 5 percent of the respondents strongly disagree with RSHR SERVICES.
Always strives for continuous individual improvements.

86
 CHAPTER
IV

FINDINGS
1. Presence of a firmly implemented career plan- good sense of growth.

2 .High proportion of routine work during training immediately and after that

87
 1) Organization climate-

Well analyzed goals are set.

Good and effective performance appraisal strategies applied.
All the strategies are fair and objective.
The employees are well aware of what is expected of them.
Proper feedback is not given to the management cadre staff.
Suggestions and innovations are not rewarded.
Supervisors are patient with the employees problems.
Good performance leads to annual increments and promotions.
Training and development programs are not very effective and helpful.
The purpose of Performance Appraisal System followed in the company is fulfilled.

88
CHAPTER -
V

89
 SUGGESTIONS

Extensive of the job training.

Free hand in decision making.
Focused job responsibility.
Transparent career planning of all officers.
Give tangible advantages.
Exemplary rewards should be given for unique achievements of the employees.
Informal were calling as and when they need.
Giving chance in decision making.
Reward for employee work.
Proper interactions with seniors.
Effective training and development programs should be held.
Proper feedback should be given to the management cadre staff at fixed time
periods.
Suggestions and innovations should be encouraged.
Performance appraisal system should be extensively used in job rotation.
Up gradation of basic qualification of all workers to be taken in future based on
their performance.
Improve competency of the workers.
The company should concentrate more on individual development.

90
CHAPTER
VI

91
 CONCLUSION

The study on Performance Appraisal at RSHR SERVICES has given me opportunity to

have a closer look at the imperatives of the performance Appraisal System as a domain of
HR delivery.
It has enhanced my knowledge as how an organization work and operates to perform its
operations effectively and efficiently. The project has not only helped me to have close
insight into the practical implication of business process but also the performance appraisal
is done.
While going through the different process followed at RSHR SERVICES within
performance Appraisal, I came to know of the importance of performance appraisal. This
opportunity to work as researcher has helped me understanding the theoretical and practical
aspects of management.
The summer project, also made me realize the importance of HR as a fascinating function
in an organization. I got to know of the importance of communication and interpersonal
skill in getting things done from others. In a nut shell, it was great learning for me as
management student.
With the help of personal interview and discussion with the employee and on the basis of
instrument of defined questionnaire I reached on the following co RSHR SERVICES.
According to respond given against the question no. 1, 2, 3, it can RSHR SERVICES.ude
that majority of the respondent are know about the Performance Appraisal System and they
feel its need in the organization, they rated it good. It means that Performance Appraisal
System is satisfactory in the organization.

1. Annual Performance Appraisal System is prevailing in the organization

92
 BIBLOGRAPHY

Websites:

www.hrtoturial.word.com

www.google.com

www.indianfoline.com

www.economictimes.com

Journals:
Gitam Journal of Management.
Journal of Occupational and Environmental medicine.
Indian Journal of Social Work.
Indian Journal of Human Resource.

93
 ANNEXURES
Questionnaire

1. Since how long have you been working in RSHR SERVICES?

0-1 yrs 1-5 yrs 5-10 yrs 10+ yrs

2. How satisfied are you in setting your goals and objectives in the beginning of the
year?
Very satisfied
Satisfied
Dissatisfied

3. How are the Performance Appraisal strategies and programs in the company?
Good
Average
Bad

4. Do you consider Performance Appraisal strategies fair and objective?

Yes
No
cannot say

5. Is it necessary to appraise an employee?

Yes
No
6. Are you clear with what is expected of you?

94
 Yes
No

7. Are Management Cadre Staff provided with regular performance feedback?

Yes
No

8. Are your suggestions and innovations rewarded?

Yes
No

9. Do your supervisors take interest in sharing your personal concern?

Yes

No

10. Are your annual increments/promotions based on your performance?

Yes

No

Cannot say

11. How satisfied are you in interdepartmental teamwork?

Good

Average

Bad

95
12. To what extent do training and development programs help in improving your
performance?
To great extent

To some extent

To very little extent

13. How far is the Performance Appraisal system used for job rotation?
Mostly

Partially

Nil

14. To what extent is the purpose of Performance Appraisal fulfilled?

Completely

Partially

Nil

15. Does RSHR SERVICES. Always strive for continuous individual improvement?
strongly agree

Agree

Disagree

96
 strongly disagree

16. When performance appraisal is made in the organization?

Monthly

Quarterly

Yearly

Others

17. What is the objective of performance appraisal?

Promotion

Assessing training and development needs

Pay rise

Others

18. Is there any conflict arise between employees after performance appraisal is
made?

Frequently

Often

Sometimes

97
 Never

19. Are there any job expectations established before performance appraisal?

Frequently

Often

Sometimes

Never

20. Who rates the performances?

Superiors

Subordinates

Clients

All

21. On what basis performance appraisal is made?

Total output

Behavioral efficiency

Both

22. Is 360 degree appraisal process undertaken in the organization?

98
 Yes

No

If yes, from when?

Recently

More than one year

Less than one year

Since the inception of 360 degree process

23. Does any change arise after appraising the performances

of employees?

Yes

No

If yes, then what extend?

Positive

Negative

Both

24. Does performance appraisal process help to raise organizations total output?

Yes

99
 No

25. Are you satisfied with the appraisal process of the organization?

Yes

No

If yes, to what extend?

Fully satisfied

Moderately satisfied

26. Do you feel performance appraisal process is sufficient in appraising the

performances of employees or you need some alternatives to it?

Sufficient

Alternative

100
101