“A Study on Performance Appraisal at Jawaharlal Nehru Port Trust”

A Project submitted to

University of Mumbai for partial completion of the degree of

Bachelor of Management Studies

Under the faculty of Commerce

Semester VI

By

AKANSHA GANESH THAKUR

Under the Guidance of

Prof. Sarika S. Bansod

University of Mumbai

Changu Kana Thakur Arts, Commerce and Science

College (Autonomous), New Panvel

Plot no. 1, sec-11, Khanda Colony, New Panvel (W),

Dist- Raigad

Maharashtra India-410206

March 2020-2021
“A Study on Performance Appraisal at Jawaharlal Nehru Port Trust”

A Project submitted to

University of Mumbai for partial completion of the degree of

Bachelor of Management Studies

Under the faculty of Commerce

By

AKANSHA GANESH THAKUR

Under the Guidance of

Prof. Sarika S. Bansod

Changu Kana Thakur Arts, Commerce and Science

College (Autonomous), New Panvel

Plot no. 1, sec-11, Khanda Colony, New Panvel(W),

Dist- Raigad

Maharashtra India-410206

March 2020-2021
 CERTIFICATE

This is to certify that Ms. AKANSHA GANESH THAKUR has worked and duly completed
her Project Work for the degree of Bachelor of Management Studies under the Faculty of
Commerce in the subject of HR and her project is entitled

“A Study on Performance Appraisal at J.N.P.T”

Under my supervision, further certify that the entire work has been done by the learner under
my guidance and that no part of it has been submitted previously for any Degree or Diploma of
any University.

It is her own work and facts reported by his personal findings and investigations.

Project Guide Principal Signature External

Examiner
 DECLARATION

I the undersigned Ms AKANSHA GANESH THAKUR here by declare that the work
embodied in this project work titled “A Study On Performance Appraisal at J.N.P.T” forms
my own contribution to the research work carried out under the guidance of Prof. Sarika S.
Bansod is a result of my own research work and has not been previously submitted to any other
university for any other Degree/ Diploma to this or any other university.

Wherever reference has been made to previous works of others, it has been clearly indicated as
such and included in the bibliography.

I, here by further declare that all information of this document has been obtain and presented in
accordance with academic rules and ethical conduct.

AKANSHA GANESH THAKUR

Certify by

Prof. Sarika S. Bansod

 ACKNOWLEDGEMENT

To list who have helped me in difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in
the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.

I would like to thank my Principal, Prof. Dr.Vasant D Barhate for providing the necessary
facilities required for completion of this project.

I take this opportunity to thank our Coordinator Prof. Trupti M. Joshi, for her moral support
and guidance.

I would also like to express my sincere gratitude towards my project guide Prof. Sarika S
Bansod whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and
magazines relates to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and Peers who supports me throughout my
project.
 INDEX

Topic Page no
Sr No

1. EXECUITIVE SUMMARY 1
2. I. AIM OF STUDY 2
II. OBJECTIVE OF STUDY

3. RESEARCH METHODOLOGY 3-4

4. SCOPE OF STUDY 5
5. LIMITATIONS OF STUDY 6
6. COMPANY OVERVIEW 7-20
7. INTRODUCTION TO TOPIC 21-36

8. DATA ANALYSIS AND DATA INTERPRETATION 37-46

9. FINDINGS 47

10. CONCLUSION 48

11. SUGGESTIONS 49

12. BIBLIOGRAPHY 50

13. ANNEXURE 51-52

 EXECUTIVE SUMMARY

Today in every organization personnel planning as an activity is necessary. It is an important part

of organization. Human Resource Planning is a vital ingredient for the success of the
organization in the long run. There are certain ways that are to be followed by every
organization, which ensures that it has right number and kind of people, at right place and right
time, so that organization can achieve its planning objective.

The objectives of Human Resource Development are Human Resource Planning, Recruitment
and Selection, Training and Development, Career Planning, Transfer and promotion, Risk
Management, Performance Appraisal and so on. Each objective needs special attention and
proper planning and implementation.

Performance Appraisal is a tool to live the performance of associate worker. Performance

Appraisal is especially want to confirm the salary increase, promotion, transfer and layoffs,
termination of services; the coaching and development to the staff in corporation. It is a tool to
see the long run of the organization and visualize the career growth of the staff.

Performance Appraisal is generally done by senior executives and therefore the senior manager
within the organization to appraiser faces the matter in rating the subordinate/employee/peer and
someday they will their subordinate incorrectly, which can block the entire purpose of the
appraisal system.

From user testing, the standard appraisal system found to be economical within the problems like
it is facilitate to judge actuality talents of workers, facilitate workers to grasp structure goals, and
to produce quick and effective feedback. The users found the system simple to grasp and use and
were a lot of happy with effectiveness of the system.

1
 AIM OF THE STUDY

To study Performance Appraisal process with special reference to JNPT.

OBJECTIVES OF THE STUDY

Ø To find out present present performance appraisal system used in the company.
Ø To find out the employees views for the system adopted by the company to appraise their
performance.
Ø To know about the working scheme of the company.
Ø To suggest some measures for improving the methods to appraise the performance of the
workers.

2
 RESEARCH METHODOLOGY

RESEARCH:
Research refers to the search for knowledge. It can be also define as a scientific and systematic
search for information on specific topic. In simple terms, research means, ‘A careful
investigation especially through search for new facts in any branch of knowledge’.

RESEARCH METHODOLOGY:
The process used to collect information and data for the purpose of making business decisions.
The methodology may include publications research, interviews, surveys, and other research
techniques, and could include both present and historical information.

SOURCES OF DATA:

The sources of data are as follows:

Ø PRIMARY DATA:

There are several methods of collecting information primary data, particularly in survey and

descriptive research which are as follow :

Internal data about working of HR department gathered from organization.

Interview.

Sufficient data collected through form by employees that is questionnaire.

3
Ø SECONDARY DATA:

Secondary data means that are already available that is they refer to the data which have been
collected and analysed by someone else. Secondary data analysis saves the time that would
otherwise be spent collecting data. Secondary data may either be published data or
unpublished data. Usually, published data are available in the following:

Magazines, journals.
Manuals of the company.
Website of the company.
Books.

Sampling Technique:
To study the project, a simple random sampling technique is used.

SAMPLE SIZE:
The sample size is taken is 20 employees from the Human Resource Department in JNPT.

4
 SCOPE OF THE STUDY

Studying “Performance Appraisal” of the employees as specialized subject restricts a

trainee for not entering into the different parameters as well as views of the company. The
findings of the study can be referred as reference for entire organizational policies,
parameters and practices. The scope of research is very vast; however the total time period
available was very limited for the purpose of study, observations, analysis and conclusion.

Ø The scope of the study includes the following aspects of performance appraisal.
Ø The feedback of an employee.
Ø Proper utilization of human resource planning.
Ø Effectiveness of performance appraisal and techniques.
Ø Cost effectiveness.

5
 LIMITATIONS OF THE STUDY

· Some of the respondents might hesitate to fill the questionnaires.

· Respondent may give biased answers to the question which affects the result of
study.
· There is some information which is confidential for collecting the data, so some data
could not have been collected for confidentially or secrecy of management.
· Because of small period of time only small sample had to be considered which
doesn’t actually reflect and accurate picture.
· In many cases, up to date information is not published.

6
 INTRODUCTION TO COMPANY

The Jawaharlal Nehru Port Trust (JNPT) at Navi Mumbai (formerly known as the Nhava
Sheva Port) is India’s No. 1 container port handling more than half of the total container
cargo handled by across all major ports in India. Commissioned on 26th May 1989, JNPT
occupies a prominent place among the most modern ports in India. It is the second youngest
and one of the most modern major ports of the country. Initially, JN Port was planned to be a
‘satellite port’ to the Mumbai Port with a purpose to decongest traffic. In the pre- reform
days, Mumbai port faced a lot of issues like shallowness of the channel, congestion on roads
and railways through the Mumbai city linking the port to its hinterland, as well as labour
problems. The total land area in possession of JNPT measures to 2,987 hectares with enough
backup area for developing additional facilities for future maritime requirements of the
country. It was built with an investment of Rs.1, 109 crores, out of which Rs.956.97 crores
were obtained as loans from various funding agencies, with the World Bank being one of the
major contributors. The Port’s incapability of handling the expanding volume of modern
cargo directed to the west coast, eventually led to JN Port becoming an independent port in
1989. It crossed the 5 Million TEUs milestone for container handling in the financial year
ending March '19. JNP is ranked 28th among the top 100 container ports in the world. It has
long-term goal of achieving 10 million TEUs by the year 2020-2021, through addition of two
more terminals, viz. the 330M stand-alone container terminal (DP World) and the 4th
container terminal (Port of Singapore Authority) and a satellite Port at Vadhvan Point. JNP
throws open an array of worthwhile opportunities for the maritime trade, including the
shipping lines and shippers, to ferry their cargo to various sectors across the globe. It has
connectivity to 52 inland container depot across the country.
The hinterland connectivity both by rail and road is being further strengthened by
ongoing projects like Dedicated Freight Corridor (DFC), which will increase the existing
train capacity of 27 to 100 trains per day; Multi-Modal Logistics Park (MMLP) and widening
of the Port road connectivity. Its proximity to the cities of Mumbai, Navi Mumbai and Pune;
Airports; Hotels, Exhibition centres, etc. gives the port an extra edge to address the shipper’s
needs, efficiently and promptly. JNPT accounts for more than half total container volumes
handled at India’s 12 public ports and around 40 percent of the nation’s overall containerized
ocean trade.

7
Major exports from JNPT are textiles, importing goods, carpets, boneless meat, chemicals
and pharmaceuticals.

The main imports are machinery, chemicals, plastics, vegetable oils and aluminium and
other non-ferrous metals. The port handles cargo traffic mostly originating from or destined
for Maharashtra, Madhya Pradesh, Gujarat, Karnataka, as well as most of North India.

8
WHAT IS WELFARE AT WORK?

Health, safety and welfare are basic requirement at work, and can be divided into four broad
categories: the working environment, welfare facilities, workplace safety and housekeeping.
The intern also had taken note of the working condition in the Jawaharlal Nehru Port Trust.
The intern was satisfied by the working condition in the organization and therefore describes
his observations and explanations below.

WORKING ENVIRONMENT:

Ventilation:

The Jawaharlal Nehru Port Trust had an adequate supply of fresh air. In many cases suitable
ventilation can be achieved by opening windows and doors, but where necessary, mechanical
ventilation systems were provided and maintained to an appropriate standard.

Temperature-indoors:

Indoor temperatures provided reasonable comfort during working hours. Where work
requires less physical effort, such as in an office, temperatures were set at least 25ºC. Where
work requires more physical effort, the minimum temperatures were reduced to 18ºC, subject
to other conditions such as humidity, ventilation, etc.

Temperature-hot or cold environments:

Where temperatures move from what is regarded as comfortable, the risk to the health of
those individuals exposed increases. Heat or Cold Stress may occur depending on the
environment; as a result, there is a requirement to assess the risk to health. Consideration
were given to personal and environmental factors, such as duration of exposure, clothing,
body activity, ambient temperatures, radiant heat, humidity and air velocity.

Lighting:
Lighting was sufficient to enable people to work and move about safely. Natural light was
preferable, although artificial lighting is acceptable and is often used to boost light
levels. Where necessary, local or task lighting were also be used. Where loss of lighting
could pose a risk, independently powered automatic emergency lighting were provided.

9
Cleanliness and waste disposal:

Cleaning work and disposal of waste were carried out routinely in order to maintain
good standards of cleanliness and hygiene in the workplace.

Room dimensions and space:

Workrooms provided enough free space to allow people to freely access work areas and move
within the workplace, free from the risk of tripping or striking objects, etc.

Work stations and seating:

Work stations and seating were suitable for the work and the individuals using them.
Where work had to be done seated, suitable seats were used. All seating were provide with
adequate support particularly for the lower back. Footrest were provided for individuals that
cannot place their feet on the floor to provide support. Work stations had facilities for
individuals to leave them quickly in an emergency.

WELFARE FACILITY

Drinking water:

An adequate supply of clean drinking was available. This was normally obtained from a
tap directly from a rising main, but drinking water were provided from a tap supplied by a
storage cistern, providing cleaned and disinfected water regularly. Suitable drinking cups
were provided where required. If it was not possible to provide a piped supply of water, bottled
water or water dispensing systems were provided as an alternative source of drinking
water. Containers were refilled at least daily.

10
Sanitary facilities:

An appropriate number of sanitary conveniences were provided, and had an

adequately ventilation which was lit and kept clean. Separate facilities for male and females
were provided.

The recommended minimum is:

● Up to 5 workers: 1 water closet, 1 wash station

● 6 to 25 workers: 2 water closets, 2 wash stations

● 26 to 50 workers: 3 water closets, 3 wash stations

● 51 to 75 workers: 4 water closets, 4 wash stations

● 76 to 100 workers: 5 water closets, 5 wash stations

After the number of people exceeds 100, an additional wash station is required for every
25 people.

For workplaces with only male workers, the minimum recommendations are:

● Up to 15 workers: 1 water closet, 1 urinal

● 16 to 30 workers: 2 water closets, 1 urinal

● 31 to 45 workers: 2 water closets, 2 urinals

● 46 to 60 workers: 3 water closets, 2 urinals

● 61 to 75 workers: 3 water closets, 3 urinals

● 76 to 90 workers: 4 water closets, 3 urinals

● 91 to 100 workers: 4 water closets, 4 urinals

11
Washing facilities:

Washing facilities was readily accessible, adequate in number and were provided with hot
and cold (or warm) running water, soap and hand-drying facilities. Where work is
particularly strenuous, dirty or could result in contamination of the skin by a harmful offensive
material (e.g. body fluids, hazardous chemicals, contaminated soil), showers were provided.

Rest and eating:

Suitable rest facilities were provided for people to eat meals, etc. particularly where food
eaten in the workplace could become contaminated. There was on-site canteen facility close by
where hot food was obtained. The organization provided facilities for heating food (usually a
kettle and microwave would meet these requirements). Canteens were also used as rest
facilities, providing there is no obligation to purchase food.

Changing facilities and clothing accommodation:

Adequate changing facilities were provided in areas where special clothing is required
(for example: uniforms, personal protective suits, etc.). These areas ensured the privacy of the
user, and include facilities for secure storage of personal belongings

12
WORKPLACE SAFETY:

Maintenance:

Any part of the workplace or equipment that could pose a risk to the health, safety, or welfare of
staff or others, were maintained in a safe condition.

Floors and traffic routes:

Floors was of sound construction and in good condition, free from hazards that could
cause slips, trips or falls. The organization considered the loads they take, and any vehicles
using them. Open-sided staircases were protected with upper and lower rails, etc.

Falls and falling objects:

The organization has an alternate to reduce the risks of falling from a height and injuries
from falling objects. Hazardous substances contained in tanks, pits and other structures,
were securely fenced or covered to prevent individuals falling into them.

13
 JOB PROFILE OF HR DEVELOPER
Human Resource Development includes such opportunities as employee training, employee
career development, performance management and development, coaching, mentoring,
succession planning, key employee identification, tuition assistance, and organization
development.

Human resources specialists are responsible for recruiting, screening, interviewing and placing
workers. They may also handle employee relations, payroll, benefits, and training. Human
resource managers plan, direct and coordinate the administrative functions of an organization.

HR JOB EXPERIENCE
Implement effective HR policies to ensure all practices are in compliance with my fellow
colleagues.

Conducted several seminars and workshops related to HR policies.

Skilled in Microsoft office suite.

Increased proficiency in typing skills.

LEARNING AND CHALLENGES

In this job I learned how the recruitment and selection takes place in the company. What
qualification is required to join a job rules and regulations to perform a particular job. How many
total post are there in various department of the organization. The employees are classified into
four post i.e.:

Class 1 post for chief manager.

Class 2 post for assistant manager, assistant engineer, etc.

Class 3 post for Office superintendent, clerks, etc.

Class 4 post for peons, fireman, etc.

14
 OVERCOMING THE CHALLENGES

Ø There are regulation on everything from hiring practices, to wage payment,

to workplace safety.
Ø Business owners should focus on communicating the benefits of the change
for everyone.
Ø Accomplishing goals will motivate them and give chance to develop their
skills.
Ø Training and development doesn’t have to take lot of time or money.
Ø Set clear for adoption of initiatives, and provide employees with training
they need to get comfort.
Ø Put strategic organizational change into practice to enhance quality,
productivity and employee satisfaction.
Ø Devise an effective training program.
Ø Create and establish a reward system that keeps employees motivated.
Ø Design benefit packages and evaluate their values.
Ø Managing a Diverse Workforce.
Ø In the past, much of the workforce that was employed on a daily basis were,
to put it plainly, White men. However, the mantra has shifted, and businesses
must employ a more diverse workforce for many reasons.
Ø Increase Employee Productivity Through Technology.
Ø In HR, often we get bogged down with the little details instead of focusing
on the big ones. One of the largest issue in HR is how to increase employee
productivity so that they get more done in less time, and really maximize
their time at work. However, often inefficient or outdated practices account
for much wasted time on the job. They are ways to make your systems more
efficient.

15
 VISION
To become the premier container port of South Asia.

OBJECTIVES
The port was created to relive pressure on Mumbai port, then the pre-eminent port of India.
This port on the Arabian Sea is accessed via thane creek. JNPT is connected to railway
network through JNPT-Panvel rail link of central railway. Panvel is gateway for south
bounds train from Mumbai and also well connected with western railway route through
Panvel-Diva-Vasai line.

HR DEPARTMENT SCOPE
· Allotment of plots to JNP PAPs under 12.5% allotment scheme.
· Rehabilitation of Project Affected Persons (PAPs)
· Providing residential units.
· Providing education.
· Welfare fund.
· Canteens
· Training centre.
· Hospitals.

SERIVES OF THE COMPANY

JNPT accounts for more than half of total container volumes handled at India’s 12 public
ports and around 40 percent of the nation’s overall containerized ocean trade. Major
exports from Jawaharlal Nehru Port are textiles, sporting goods, carpets, textile machinery,
boneless meat, chemicals and pharmaceuticals. The main imports are chemicals
,machinery, plastics, electrical machinery, vegetable oils and other non-ferrous metals. The
port handles cargo traffic mostly originating from or destinated from Maharashtra, Madhya
Pradesh, Gujarat and Karnataka.

16
 ORGANIZATIONAL STRUCTURE

CHAIRMAN

DEPUTY CHIEF
VIGILANCE
CHAIRMAN

Chief
Chief Deputy
Manager Chief Chief Chief Chief
Manager Conserva
(ADMN Manager Manager Manager Medical
(TRAFFI tor
& (M & EE) (FINANCE) (PP & D) Officer
C) (MARINE)
SECY)

17
 ADMINIDTRATION DEPARTMENT

(HIERARCHY)

CHIEF MANAGER (ADMN. AND SECY)

MANAGER MANAGER
MANAGER
(ADMN) (LEGAL)
(P & IR)

DEPUTY
DY MANAGER (P) DY MANAGER (IR) MANAGER
(MARKETING)

18
 ADMINISTRATION
ADMINISTRATION DEPARTMENT
DEPARTMENT

P & IR GEN. ADMN LEGAL MARKETING

INDUSTRIAL TRAINING &

PAYROLL
PERSONNEL RELATION DEVELOPMENT

RECRUITMENT MAINTENANCE
PROMOTION MACPs
& SELECTION OF ACR’s

19
 INTRODUCTION TO THE TOPIC

INTRODUCTION TO HUMAN RESOURCE

Human Resource Management, or HRM, is the practice of managing people to achieve

better performance. For example, if you hire people into a business, you are looking
for people who fit the company culture as they will be happier, stay longer, and be more
productive than people who won't fit into the company culture.

Human resource management (HRM or HR) is the strategic approach to the effective
management of people in a company or organization such that they help their business gain
a competitive advantage. It is designed to maximize employee performance in service of an
employer's strategic objectives. Human resource management is primarily concerned with the
management of people within organizations, focusing on policies and systems. HR
departments are responsible for overseeing employee-benefits design,
employee recruitment, training and development, performance appraisal, and reward
management, such as managing pay and Employee benefits benefit systems. HR also
concerns itself with organizational change and industrial relations, or the balancing of
organizational practices with requirements arising from collective bargaining and
governmental laws.

20
 PERFORMANCE APPRAISAL

Performance Appraisal is defined as a systematic process, in which the personality and

performance of an employee is assessed by the supervisor or manager, against predefined
standards, such as knowledge of the job, quality and quantity of output, leadership abilities,
attitude towards work, attendance, cooperation, judgment, versatility, health, initiative and so
forth.

It is also known as performance rating, performance evaluation, employee assessment,

performance review, merit rating, etc.

Performance Appraisal is carried out to identify the abilities and competencies of an employee
for future growth and development. It is aimed at ascertaining the worth of the employee to the
organization, in which he/she works.

Performance appraisal is used for:-

Ø Distinguishing staff for earnings will increase, promotion, transfer and closing or termination of
services.
Ø Determinative coaching want for any improvement in performance.
Ø Motivating staff by indicating their performance levels.
Ø Establishing a basis for analysis and reference for personnel choices in future.

21
 OBJECTIVES OF PERFORMANCE APPRAISAL

Ø To promote the employees, on the basis of performance and competence.

Ø To identify the requirement for training and development of employees.

Ø To provide confirmation to those employees who are hired as probationary

employees, upon completion of the term.

Ø To take a decision regarding the hike in employees pay, incentives etc.

Ø To facilitate communication between superior and subordinate.

NEEDS OF PERFORMANCE APPRAISAL

· There are certain requirements expected from the employees for which performance
appraisal are conducted.
· Providing information about the performance ranks on which decision regarding
salary fixation, promotion, etc. are taken.
· Review of the performance of the subordinates.
· Providing information that helps to counsel the subordinates.
· Getting information to diagnose deficiency in employees regarding skills, knowledge,
etc.
· To prevent grievance and in disciplinary activities.

22
ADVANTAGES OF PERFORMANCE APPRAISAL

Ø Documentation: A PA provides a document of employee performance over a specific

period of time. It’s a piece of paper that can be placed in an employee file.

Ø Structure: This process creates a structure where a manager can meet and discuss
performance with an employee. It forces the uncomfortable conversations that often need to
happen.

Ø Feedback: Employees crave feedback, and this process allows a manager the opportunity to
provide the employee with feedback about their performance and discuss how well
the employee goals were accomplished. It also provides an opportunity to discuss employee
development opportunities.

Ø Clarify Expectations: Employees need to understand what is expected of them and the PA
process allows for a manager to clarify expectations and discuss issues with their employee.

Ø Annual Planning: It provides a structure for thinking through and planning the upcoming
year and developing employee goals.

Ø Motivation: The process should motivate employees by rewarding them with a merit
increase and as part of a comprehensive compensation strategy.

23
DISADVANTAGES OF PERFORMANCE APPRAISAL

· Creates Negative Experience: If not done right, the performance appraisal can create a
negative experience for both the employee as well as the manager. Proper training on
processes and techniques can help with this.

· Time Consuming: Performance appraisals are very time consuming and can be
overwhelming to managers with many employees. I’ve known managers who were
responsible for doing an annual PA on hundreds of employees.

· Natural Biases: Human assessment are subject to natural biases that result in rater errors.
Managers need to understand these biases to eliminate them from the process.

· Waste of Time: The entire process can be a waste of time if not done appropriately.
Think about the time investment when the end result is negative. It is time wasted on all
fronts.

· Stressful Workplace: Performance appraisals can create stressful work environments

for both employees and managers. Proper training can help to reduce the stress involved
in the process.

24
METHODS OF PERFORMANCE APPRAISAL:

Trait Method:

1. Graphic rating scales

2. Ranking method

3. Parried comparison method

4. Forced distribution method

5. Checklist method

6. Essay method or free-form appraisal

7. Confidential reports

Ranking Method:

It is the oldest and simplest formal systematic method of performance appraisal in which employee
is compared with all others for the purpose of placing order of worth. The employees are ranked
from the highest to the lowest or from the best to the worst.

In doing this the employee who is the highest on the characteristic being measured and also the one
who is L lowest, are indicated. Then, the next highest and the next lowest between next highest and
lowest until all the employees to be rated have been ranked. Thus, if there are ten employees to be
appraised, there will be ten ranks from 1 to 10.

Paired Comparison:
In this method, each employee is compared with other employees on one- on one basis, usually
based on one trait only. The rater is provided with a bunch of slips each coining pair of names, the
rater puts a tick mark against the employee whom he insiders the better of the two. The number of
times this employee is compared as better with others determines his or her final ranking.

25
Grading Method:

In this method, certain categories of worth are established in advance and carefully defined.
There can be three categories established for employees: outstanding, satisfactory and
unsatisfactory. There can be more than three grades. Employee performance is compared with
grade definitions. The employee is, then, allocated to the grade that best describes his or her
performance.

Such type of grading is done is Semester pattern of examinations and in the selection of a
candidate in the public service sector. One of the major drawbacks of this method is that the rater
may rate most of the employees on the higher side of their performance.

Forced Distribution Method:

This method was evolved by Tiffen to eliminate the central tendency of rating most of the
employees at a higher end of the scale. The method assumes that employees’ performance level
confirms to a normal statistical distribution i.e., 10,20,40,20 and 10 per cent. This is useful for
rating a large number of employees’ job performance and promo ability. It tends to eliminate or
reduce bias.

It is also highly simple to understand and easy to apply in appraising the performance of
employees in organisations. It suffer from the drawback that improve similarly, no single grade
would rise in a ratings

Forced-Choice Method:
The forced-choice method is developed by J. P. Guilford. It contains a series of groups of
statements, and rater rates how effectively a statement describes each individual being evaluated.
Common method of forced-choice method contains two statements, both positive and negative.

Check-List Method:
The basic purpose of utilizing check-list method is to ease the evaluation burden upon the rater.
In this method, a series of statements, i.e., questions with their answers in ‘yes’ or ‘no’ are
prepared by the HR department . The check-list is, then, presented to the rater to tick appropriate
answers relevant to the appraisee. Each question carries a weight-age in relationship to their
importance.

26
When the check-list is completed, it is sent to the HR department to prepare the final scores for
all appraises based on all questions. While preparing questions an attempt is made to determine
the degree of consistency of the rater by asking the same question twice but in a different manner
.

However, one of the disadvantages of the check-list method is that it is difficult to assemble,
analyse and weigh a number of statements about employee characteristics and contributions
From a cost stand point also, this method may be inefficient particularly if there are a number of
job categories in the organisation, because a check-list of questions must be prepared for each
category of job. It will involve a lot of money, time and efforts.

Critical Incidents Method:

In this method, the rater focuses his or her attention on those key or critical behaviours that make
the difference between performing a job in a noteworthy manner (effectively or ineffectively).
There are three steps involved in appraising employees using this method.

First, a list of noteworthy (good or bad) on-the-job behaviour of specific incidents is prepared.
Second, a group of experts then assigns weightage or score to these incidents, depending upon
their degree of desirability to perform a job. Third, finally a check-list indicating incidents that
describe workers as “good” or “bad” is constructed. Then, the check-list is given to the rater for
evaluating the workers.

The basic idea behind this rating is to apprise the workers who can perform their jobs effectively
in critical situations. This is so because most people work alike in normal situation. The strength
of critical incident method is that it focuses on behaviours and, thus, judge’s performance rather
than personalities.

Its drawbacks are to regularly write down the critical incidents which become time-consuming
and burdensome for evaluators, i.e., managers. Generally, negative incidents are positive ones. It
is rater’s inference that determines which incidents are critical to job performance. Hence, the
method is subject to all the limitations relating to subjective judgments.

27
Graphic Rating Scale Method:

The graphic rating scale is one of the most popular and simplest techniques for appraising
performance. It is also known as linear rating scale. In this method, the printed appraisal form is
used to appraise each employee.

The form lists traits (such as quality and reliability) and a range of job performance
characteristics (from unsatisfactory to outstanding) for each trait. The rating is done on the basis
of points on the continuum. The common practice is to follow five points scale.

The rater rates each appraisee by checking the score that best describes his or her performance
for each trait all assigned values for the traits are then totaled.

This method is good for measuring various job behaviours of an employee. However, it is also
subjected to rater’s bias while rating employee’s behaviour at job. Occurrence of ambiguity in
design- mg the graphic scale results in bias in appraising employee’s performance.

Essay Method:
Essay method is the simplest one among various appraisal methods available. In this method, the
rater writes a narrative description on an employee’s strengths, weaknesses, past performance,
potential and suggestions for improvement. Its positive point is that it is simple in use. It does not
require complex formats and extensive/specific training to complete it.

However, essay method, like other methods, is not free from drawbacks. In the absence of any
prescribed structure, the essays are likely to vary widely in terms of length and content. And, of
course, the quality of appraisal depends more upon rater’s writing skill than the appraiser’s
actual level of performance.

Moreover, because the essays are descriptive, the method provides only qualitative information
about the employee. In the absence of quantitative data, the evaluation suffers from subjectivity
problem. Nonetheless, the essay method is a good start and is beneficial also if used in
conjunction with other appraisal methods.

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Field Review Method:
When there is a reason to suspect rater’s biasedness or his or her rating appears to be quite higher
than others, these are neutralised with the help of a review process. The review process is usually
conducted by the personnel officer in the HR department.

Confidential Report:
It is the traditional way of appraising employees mainly in the Government Departments.
Evaluation is made by the immediate boss or supervisor for giving effect to promotion and
transfer. Usually a structured format is devised to collect information on employee’s strength
weakness, intelligence, attitude, character, attendance, discipline, etc. report.

Behaviour Method:

1. Behaviour checklist method

2. Critical incident method

3. Behaviour anchored rating scales (BARS)

4. Assessment centre

5. Psychological appraisal

Checklist

Checklist method is another of the easiest methods of appraising employee’s performance. Under
this method, a checklist is prepared by the HR manager and is forwarded to the rater. The
checklist may include list of questions (depicting behavior and job performance of employee)
and the rater has to answer them in just ‘YES’ or ‘NO’ form.

The rater analyzes the question and the employee, and based on his views, he answers them.
Such questions also carry some scores (equal or different), depending upon the nature or
importance, which is totaled at the end of the procedure by the HR manager.

29
This method is helpful not only in evaluating employee’s job performance but also in evaluating
degree of uniformity of the rater by giving him two similar questions in different manner. In the
given figure, question no. 3 and 6 are differently asked same questions.

Critical incident method

Generally, all employees perform alike during normal situations but there are very few who can
maintain their performance during unfavorable time as well. Critical incident method is used to
evaluate the ability of employees to work during such situation.

Under this method, the rater keeps record of effective as well as ineffective behaviors of
individual employee at the workplace.Such appraisal is conducted periodically. And at the end of
every assessment, the HR manager or some experts evaluate the behavior and score them,
depending upon which the best scoring employees and poor scoring employees are identified.

An example of effective behavior: A customer angrily stormed into the shop, complaining that
the product he ordered was damaged. The sales executive patiently listened to the complaint and
promptly replaced it, apologizing for the customer’s inconvenience.
An example of ineffective behavior: The sales clerk went on a leave during the festive season,
during which 80% of the sales happened. He provided no logical reason for the leave and
stopped responding to the phone calls.
Maintaining logs of employee’s critical incident behavior helps in preparing checklist too. The
group of experts evaluates the behaviors of employees collectively and they prepare checklist,
whenever necessary.Critical incident method evaluates job performance of an employee, rather
than his personality. However, this method has some drawbacks.

Behaviorally anchored rating scales (BARS)

Behaviorally anchored rating scales (BARS) is the combination of critical incident and rating
scale methods of performance appraisal. Under this method, the scale points are defined by
critical (effective or ineffective) behaviors of the employee.

BARS usually consists of scale ranging from 5 to 9 points, each representing continuum of
statements that describes behavior of employees ranging from unacceptable to most effective.

30
Assessment center method

The assessment center method is often used in selection procedures to test the suitability of the
candidates. An assessment consists of several tests and practical simulations that are intended to
show whether a person is the right fit for a particular position or still performs optimally.

The assessment often consists of different components including intelligence tests, psychological
tests and presentations. Role-playing often is part of an assessment too.

Psychological appraisal

This method assesses the employee's potential for future performance rather than the past one. It
focuses on the employee's emotional, intellectual, and motivational and other personal
characteristics affecting his/her performance.

Modern Method:

The modem methods are based on accomplishments of an employee in order to have evaluation.
The accomplishments include sales turnover, the number of customers served, as well as the
relationship with the customers and dealers.

1. 360-degree appraisal:

Any person having through knowledge about the job contents can appraise an employee.
According to this method all parties related to an organization will be rating an employee. Thus,
performance appraisal by supervisors,” peers, subordinates, customer employees themselves
(self appraisal), other users of service, and consultants is known as 360-degree appraisal. 360-
degree appraisal is a systematic assessment of an employee regarding his present job, organi-
zational expectations and his potentialities for a better job.

2. Supervisor appraisal:

While appraising the performance, supervisors include superiors of employee from the same
department, departmental head or managers. Usually, immediate superiors appraise the
performance, which in turn is reviewed by the departmental head or manager.

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3. Peer appraisal:

Peer appraisal is experimental with military personnel so far. Peer Appraisal is a method of
evaluating the employee performance by his co-employees rather than by his manager as they
have sufficient opportunity to review the performance on a daily basis.

4. Subordinates appraisal:

This is a novel method in which subordinates may be asked to evaluate the superiors. This rating
is quite useful in identifying competent superiors.

5. Self-appraisal:

If individuals understand the objectives, they are expected to achieve the standards by which
they are to be evaluated, they are to a great extent in the best position to appraise their own
performance. Since employees are interested in the self-development, they appraise
systematically and may become highly motivated also.

6. Customer and other related parties:

Employee performance a service organization relating to their behaviour, promptness, speed in

doing the job, and accuracy can be judged by customers and suppliers (related parties to an
organization).

7. Consultants:

Consultants are trained raters who are appointed when employees/employers do not trust self-
appraisal, or peer appraisal, or subordinate appraisal. Consultants observe the employees at
work for a long period before rating.

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Goals of the Performance Appraisal System:

For supervisors, the method of performance management is one amongst the foremost
important leadership responsibilities. The performance appraisal system has 3 primary
goals:-
· To produce a proper means of constructive, open and honest communication between the
staff and his/ her supervisor.
· To boost worker development through performance feedback and thru the identification
of future skilled development activities.
· To live and document job performance as a basis for creating promotion, compensation
and alternative personnel management call.

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 PERFORMANCE APPRAISAL PROCESS

The figure shown above is a standard performance appraisal process that takes place in an
organization, wherein each step is important and arranged in a systematic manner. The process
is conducted periodically, usually twice a year, i.e. semi-annually and annually called as mid-
term review and annual review respectively.

34
STEPS INVOLVED IN PERFORMANCE APPRAISAL PROCESS:

1. Establish Performance Standards:

The appraisal process begins with the establishment of performance standards. The managers
must determine what outputs, accomplishments and skills will be evaluated. These standards
should have evolved out of job analysis and job descriptions.

These performance standards should also be clear and objective to be understood and measured.
Standards should not be expressed in an articulated or vague manner such as “a good job” or “a
full day’s work” as these vague phrases tells nothing.

2. Communicate Performance Expectations to Employees:

Once the performance standards are established, this need to be communicated to the respective
employees so that they come to know what is expected of them. Past experience indicates that
not communicating standards to the employees compounds the appraisal problem.

Here, it must be noted that mere transference of information (relating to performance standards,
for example) from the manager to the employees is not communication It becomes
communication only when the transference of information has taken place and has been received
and understood by the employees’.

The feedback from the employees on the standards communicated to them must be obtained. If
required, the standards may be modified or revised in the light of feedback obtained from the
employees. It is important to note that communication is a two-way street.

3. Measure Actual Performance:

This is the third step involved in the appraisal process. In this stage, the actual performance of
the employee is measured on the basis of information available from various sources such as
personal observation, statistical reports, oral reports, and written reports.

Needless to mention, the evaluator’s feelings should not influence the performance measurement
of the employee. Measurement must be objective based on facts and findings. This is because
what we measure is more critical and important to the evaluation process than how we measure.

35
4. Compare Actual Performance with Standards:

In this stage, the actual performance is compared with the predetermined standards. Such a
comparison may reveal the deviation between standard performance and actual performance and
will enable the evaluator to proceed to the fifth step in the process, i.e., the discussion of the
appraisal with the concerned employees.

5. Discuss the Appraisal with the Employee:

The fifth step in the appraisal process is to communicate to and discuss with the employees the
results of the appraisal. This is, in fact, one of the most challenging tasks the manager’s face to
present an accurate appraisal to the employees and then make them accept the appraisal in a
constructive manner.

A discussion on appraisal enables employees to know their strengths and weaknesses. This has,
in turn, impact on their future performance. Yes, the impact may be positive or negative
depending upon how the appraisal is presented and discussed with the employees.

6. Initiate Corrective Action:

The final step in the appraisal process is the initiation of corrective action when it is necessary.
The areas needing improvement are identified and then, the measures to correct or improve the
performance are identified and initiated.

The corrective action can be of two types. One is immediate and deals predominantly with
symptoms. This action is often called as “putting out fires.” The other is basic and delves into
causes of deviations and seeks to adjust the difference permanently.

This type of action involves time to analyse deviations. Hence, managers often opt for the
immediate action, or say, “put out fires”. Training, coaching, counselling, etc. is the common
examples of corrective actions that managers initiate to improve the employee performance.

36
 DATA ANALYSIS AND DATA INTERPRETATION

1. Is the Performance Appraisal process user friendly?

Option Frequency Percentage

14 70%
Yes
No 6 30%

Total 20 100

30%

Yes
No

70%

Data Interpretation:

It was found that 70% of respondent’s measures united to the higher than statement
and 30% of respondent’s measure disagree to the statement.

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2. Is Performance Appraisal conduct on time?

Option Frequency Percentage

Yes 16 80%

No 4 20%

Total 20 100

20%

Yes
No

80%

Data Interpretation:

It was found that 80% of the respondent in agreement to the top of statement and 20%
of the respondent disagreed to the statement.
.

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3. Does Performance Appraisal process assess fairly?

Option Frequency Percentage

Yes 15 75%
No 5 25%
Total 20 100%

25%

Yes No

75%

Data Interpretation:

75% of the respondents in agreement to higher than statement and 25% of the
respondents disagreed to the statement.

39
4. Is Performance Appraisal process is simple to understand?

Option Frequency Percentage

Yes 16 80%
No 4 20%
Total 20 100

20%

Yes
No

80%

Data Interpretation:

It was found that 80% of the respondent in agreement to the higher than statement and
20% of the respondents disagreed to the statement.

40
5. Do you receive an orientation on how to conduct appraisal process?

Option Frequency Percentage

Yes 15 75%
No 5 25%
Total 0 100

25%

Yes
No

75%

Data Interpretation:

It was found that 75% of the respondents in agreement to the top of statement and
25% of the respondents disagreed to the statement.

41
6. How much time is spent in preparing for feedback session?

Option Frequency Percentage

12 60%
1 hour
8 40%
2 hour
20 100
Total

20%

1 hour
2 hour

60%

Data Interpretation:

It was found that 60% of the respondent untied to one hour statement and 40% of the
respondents untied to two hours statement.

42
7. Is your opinion how is overall Performance Appraisal system in JNPT?

Option Frequency Percentage

Excellent 10 50%
Good 6 30%
Average 2 10%
Bad 2 10%
Total 20 100

10%

10%

Excellent
Good
50%
Average
Bad

30%

Data Interpretation:

The on top knowledge it was found the 50% of performance appraisal is Excellent
30% of is good 10% its average and 10% is bad. Thus the bulk of respondents have
viewed their opinion that this appraisal system is nice.

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8. Are you satisfied with the current Appraisal system?

Option Frequency Percentage

Yes 12 60%
8 40%
No
20 100
Total

40%
Yes
No

60%

Data Interpretation:

It was found that 60% of the respondents united to the higher than statement and 40%
of the respondent disagreed to the statement.

44
9. What are the areas need to be improved?

Option Frequency Percentage

8 40%
Time
12 60%
Process
20 100
Total

40%
Process
Time

60%

Data Interpretation:

It was found that the 60% respondent thinks that the process should be improved
better and 40% of respondent thinks that the period of time should be improved.

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10. Do you feel any difficulty in handling them?

Option Frequency Percentage

Yes 2 10%
No 18 90%
Total 20 100

10%

Yes
No

90%

Data Interpretation:

It was found that 10% respondents feels issues in handling performance appraisal
system and 90% respondents has no issue handling performance appraisal system.

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 FINDINGS

Ø JPNT follows two types of Appraisal process- Graphic Rating Scales and
Behaviorally Anchored Rating Scaling (BARS) which is user-friendly and
easily accessible within the organization.
Ø Feedback is given to the employees about their performance
Ø Promotions schemes exist in the organization according to the employees
performance
Ø It captures an individuals strengths improvement areas
Ø Various training program are available and discussed with superior
Ø Review and reset of the task is not made uniformly
Ø Group work and team work exist in an organization
Ø A Performance Appraisal system tools should be based on assessment of work
performance not personality.

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 CONCLUSION

Ø Performance Appraisal is determining compensation increases, training need

identification and for promotion.
Ø The Performance Appraisal has delinked from being part an instrument of
evaluating performance in the organization.
Ø Application of performance and bringing about better performance
management practices that enables organization to improve their presentation
and bring performance focused .
Ø It charges the motivation level of an individual considerably and in fact the
employee makes all-out effort to achieve the organizational goals.

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 SUGGESTIONS

Ø The corporate life is totally different as compared to textbook knowledge.

Ø The college should focus more on practical knowledge than theory.
Ø There should be inter-department co-operation for the smooth functionality of
the business.
Ø Even although the survey was conducted for the worker performance review
the study doesn’t match with the whole population within the company.
Ø Because of time constraints the sample size was restricted, which cannot
mirror the opinion .
Ø Since the study was restricted to samples. Samples might behave or offer
completely opinions at different times.
Ø Data may well be collected from solely respondent as they were busy and will
not respond thus well to the questionnaires.

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 BIBLOGRAPHY

Books:

Human Resource Management by k Ashwathapa.

Websites:
· www.jnport.gov.in
· www.workforceypus.com
· www.businessjagoans.com

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 ANNEXURE

1. Is the performance Appraisal process user friendly?

a. Yes
b. No

2. Is Performance Appraisal conducted on time?

a. Yes
b. No

3. Does Performance Appraisal Process assess fairly?

a. Yes
b. No

4. Is Performance Appraisal process is simple to understand?

a. Yes
b. No

5. Do you receive an orientation on how to conduct appraisal process?

a. Yes
b. No

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6. How much time spent in preparing for feedback session?
a. 1 Hour
b. 2 Hour

7. In your opinion how is overall performance appraisal system at JNPT?

a. Excellent
b. Good
c. Average
d. Poor

8. Are you satisfied with the current appraisal system?

a. Yes
b. No

9. What are the areas need to be improved?

a. Time
b. Process

10. Do you feel any difficulty in handling them?

a. Yes
b. No.

52