Performance Appraisal

INTRODUCTION Performance management can be defined as a strategic and integrated approach to delivering sustained success to organizations by improving the performance of the human capital and by developing the capabilities of teams and individuals within that organization (Armstrong and Baron, 2000). The process of performance management therefore focuses not only with ‘WHAT’ is produced but, also ‘HOW’ it is produced. It seeks to ensure that what has been produced is in line with the organization’s needs and these products have been produced in line with the organization’s way of doing things. Performance management can be achieved through many different ways. These include performance appraisal system and coaching. Performance appraisal system can be described as a fairly old system of measuring employees’ performance that has been in use in many organizations. However, Performance appraisal has not brought in the amount of positive results that was expected of it. Armstrong and Mulis (1994:86) quoted one manager describing performance appraisal as “a dishonest annual ritual”. The question that arises then is: “If Managers (the custodians of the system) do not have confidence in their own system, what more employees (who happen to be victims of the system)?” The meaning of the word “appraisal” is “to fix a price or value for something”. This is used in finance in terms such as project appraisal or financial appraisal where a value is attached to a project. Similarly performance appraisal is a process in which one values the employee contribution and worth to the organization.

1

Performance appraisal can be defined as a system of measuring employee’s performance relative to the assigned or agreed objectives. The process starts with the supervisor and or with the subordinate agreeing on specific objectives that need to be met on an agreed time period. The objectives that are used in the Performance appraisal stem from the main organizational objectives that are reduced to Departmental goals and now to individual goals. The performance appraisal system has to be transparent and the employee should be taken into full confidence. In many cases employees themselves are given a chance to conduct a self-appraisal. Performance appraisal is a case of joint problem solving by the organization and the employee. However the organization must also take care of future potential and not get bogged down by current performance. Normally the immediate supervisor does the appraisal. Some organizations also have a peer group performance appraisal where colleagues rate the performance. The HR person must also ensure that line managers are properly trained for carrying out the appraisal including interviewing techniques and on how to give feedback. The managers must also be trained to look at the cases objectively outside of their personal opinion of the candidate.

2

COMPANY PROFILE Jindal Brothers Pvt. Ltd. specializes in Design, Engineering, Fabrication and Erection of Pre-Engineered Metal Building Systems. The Group is well known in the Middle East & India for the quality of the products and services offered. In 1998, Jindal Brothers Pvt. Ltd started its journey in India by setting up State of Art manufacturing facility at Manesar, Gurgaon. Design and Detailing work is carried out by highly skilled Engineers with computed aided design and drafting facilities at the Company’s Head Office at New Delhi. Their objective is to deliver cost effective, quality PreEngineered Metal Buildings within agreed time schedules to their Customers. Jindal Brothers Pvt. Ltd. maintains high degree of professionalism at all levels, a commitment needed to maintain highest possible standards. Every project is executed with Micro Planning, to achieve the Milestones set out in the contract. This combined with quality of their products has earned us reputation in the Market Place. Corporate giants, both National and Multinational, have complimented their strategy of providing single point responsibility for Supply and Erection with highly motivated and trained In House Project Management Team to handle projects, whether it is small or big, simple or complex. More than 500 Pre-Engineered Buildings have been installed across the length and breadth of their Country. This experience corroborates their claim. Regional / Area offices across the Country are fully equipped to provide pre-order and post order service to their valued Customers. Organizational effectiveness depends upon the level of performance of its employees. Hence the level of performance has to be ensured. Periodic stock taking of the qualitative state of the man power is of vital importance to an organization and the organization tries to collect the relevant data through the tool of performance appraisal reports. Thus performance appraisal is essential for performance effectiveness and efficiency of the organization and also for carrying out administrative decisions regarding human resources. The correctness of the decision will depend heavily upon the validity of the data gathered through appraisal system. The JINDAL BROTHERS is a relatively an older organization and has been restructuring its Human Resources Systems and Policies in alignment with the current business environment. I have therefore taken up this project with an aim to study the

3

existing system of performance appraisal so that this might help other organizations to follow the same. Services Pre-Engineered steel buildings are designed and fabricated to client’s requirements in accordance with the Universal standards. A pre-engineered steel building consists of four major groups of components namely primary members, secondary members, metal roofing/wall cladding and connection fasteners. These components are designed that they are compatible with each other. The fabrication of these components is carried out in factory under strict quality control as per detailed shop drawing. These components are transported to site with proper markings and assembled at site as per erection drawings. Knowledge Hub / Brain Ware They call this the knowledge Hub, a world class Design & Engineering Office manned with team of experienced professionals and equipped with latest sophisticated design tools which distinguishes Jindal Brothers Pvt. Ltd. from others. Stadd Pro, MBS, AUTOCAD, Primavera, MS Projects are among the few Engineering & execution tools in use at Jindal Brothers Pvt. Ltd. that delivers the fastest solution at the best of engineering practices applied in a true international design environment. The Brain House offers intelligent engineering solutions and supports post order functions with general arrangement, fabrication and erection drawings. The computerized drafting, detailing and logic programs enable user friendly details to simplify manufacturing process and erection methods. The Jindal Brothers Pvt. Ltd. knowledge archives has vanity of standards and design codes such as AISC, AISI, MBMA, AWS, UBC, ASCE, IBC, IS and many others to suit customer’s need of a Pre-Engineered building at any place or country.

4

The Jindal Brothers Pvt. Ltd.’s consistent efforts in research & development and global sourcing of material have positioned the Organization as a lead runner in introducing innovative ideas and products in the market place. Manufacturing Facility:  Their State-of-the-art manufacturing facility is located at Manesar. It houses special equipments to produce quality pre-engineered buildings such as:  Automatic Beam Welding Line  Plate Shearing Line  Radial Drilling Machine  Cold Roll Forming Line  Hydraulic Press Break Line  Automatic Shot Blasting Line  The welding process is as per American Welding Society Standards. (AWS). All welders are qualified to required standards.  Well defined process on the shop floor ensures smooth flow of material and productivity.  All structural components to complete Pre-engineered building are produced in-house and go through stringent quality checks prior to dispatch.  All major raw materials and bought out items are sourced from a Panel of approved supplier to ensure quality and timely supplies.

5

Automatic Welding Machine

Purlin Roll Forming Machine

Roofing Profile Line

6

JINDAL BROTHERS India Projects:::

Location Washim

Client ITC Grain Godown Cafeteria Dept. Store

Bawal

YKK (SMCC Construction)

Jagdishpur

ITC Grain Godown Cafeteria

Vatva , Ahmedabad

MIDCO Containers Pvt. Ltd

Delhi

Giex Foods

Pune

S.M. Auto Eng.

Mandsour

ITC Grain Godown Cafeteria Dept. Store

Amaravati

ITC Dept. Store

Gurgaon

SMCC

7

8

OBJECTIVES OF THE STUDY 1. To study the 360 Degree Appraisal systems and evaluate its benefits in context of Jindal Brothers. 2. To study the effectiveness of the existing system of performance appraisal system at Jindal Brothers. 3. On the basis of what company increase salary and provide

training to its

employees. And what is basis of promotion in company. 4.

To understand more and more about his role and become clear about his functions.

5.

To understand his own strengths and weaknesses with respect to his role and functions of the company.

6. To increase mutuality between employee and his superiors. 7. Provides an opportunity to the employees for self reflection and individual goal setting.

s

9

RESEARCH METHODOLOGY In order to accomplish the objectives of the study, it is essential to articulate the manner in which it is to be conducted, i.e., the research process is to be carried-out in a certain framework. The research methodology, which follows, is the backbone of the study. Data Collection Sources Research work was done from two sources: (1) Primary data (2) Secondary data Primary data was collected by questionnaire and interview in the organizations. The questionnaire comprised of closed and attitude questions. The opinion on existing Performance Appraisal practices and their affectivity were collected through questionnaire which was circulated to all the employees at all levels and the results have been analysed on the basis of agree and disagree. The methodology for collection of data also included interviews and discussion with the top management of the organization. Secondary data: It was collected by reviewing different literatures, from published books, management journals, articles published by the other researchers on 360 Degree Appraisal.

Sampling: The total sample size for this project was 100 employees at Jindal Brothers. The information collected through above methods has been tabulated, analysed and interpreted. Finally an overall assessment of the contribution of top management, supervisory staff has been made towards improving the effectiveness of the organization.

10

TYPES OF RESEARCH Research methodology is a way to systematic solve the Research Problem. It is a procedure, which is followed step by step to solve a particular research problem. There are basically four types of researches: 1

EXPLORATIVE RESEARCH

2

DESCRIPTIVE RESEARCH

3

DIAGNOSTIC RESEARCH

4

HYPOTHESIS TESTING RESEARCH

Explorative Research: To gain familiarity with phenomenon or to achieve an insight into it. Descriptive Research: To poetry accurately the characteristics of the particular individual situation or a group. Diagnostic Research: To determine the frequency with which something occurs or with which it is associated with something else. Hypothesis Testing Research: To test a hypothesis of casual relationship between variables. The present project is Descriptive cum Explorative

in nature. It is done to poetry

accurately the characteristics of a particular individual situation or a group. The major purpose of the descriptive research is the description of the state of the affairs as it exits at resent. The main characteristics of this method are that the researcher has no control over the variables; he can only report what has happened or what is happening.

11

LITERATURE REVIEW Organizations exist to achieve goals. Goals are only met when individual employees efforts matches with policy of the organization and thus bringing out success and effectiveness. The assessment of how successful employees have been at meeting their individual goals therefore becomes a critical part of HRM and here comes Performance Appraisal System. Performance appraisal is an important component of the information and control system. In today’s flexible organizations, performance evaluation provides an important way for managers to clarify performance goals and standards and to enhance future individual performance. Thus the purpose of performance appraisal is to improve the organization’s performance through the enhanced performance of individuals. The performance appraisal system: •

Is an organizational necessity

•

Is based on well defined objective criteria

•

Is based on careful job analysis

•

Uses only job related criteria

•

Is supported by adequate studies

•

Is applied by trained qualified raters

•

Is applied objectively throughout the organization

•

Can be shown non discriminatory as defined by law.

12

OBJECTIVES OF PERFORMANCE APPRAISAL There are mainly two purposes for which performance appraisal is used by an organization: (1) To improve the work performance of employees by helping them realize and use their full potential in carrying out the firm’s missions; and (2) To provide information to employees for use in making work related decisions, More specifically, appraisals serve the following purposes. 1) Appraisals generate information to support administrative decisions. Promotions transfers and reassignments, demotions and termination’s are action based at least in part on performance. 2) Appraisals provide feedback to employees and thereby serve as vehicle for personal or career development because feedback provides: •

Reassurance that they are contributing and doing the right thing

•

Awareness of the impact on the desired results

•

A measure of the adequacy of performance (quality, quantity, speed etc.)

•

Recognition of the importance and value of their performance.

3) Once the development needs of employees are identified appraisals can help establish objectives for training programmes. Thus evaluations provide a basis for changing performance plans, including objectives and standards of behaviors as business plans and conditions change. 4) As a result of proper specifications of performance levels, appraisals can help diagnose organizational problems. They do so by identifying training needs and the knowledge, abilities, and other characteristics to consider in hiring, and they also provide a basis for distinguishing between, effective and ineffective performers. 5) Appraisals are used as criteria in test evaluations. The rationale for differential treatment of employees needs to be consistent with company’s values, philosophy and strategy. It also needs to be balanced with the desire for collaboration, rather than competition and conflict, sought in TQM. 13

NEW OBJECTIVES OF PERFORMANCE APPRAISAL Performance appraisal system can serve the following purposes if designed properly  Help each employee to understand more and more about his role and become clear about his functions.  Helps each employee to understand his own strengths and weaknesses with respect to his role and functions of the company.  Helps identifying the developmental needs of employees.  Helps increase mutuality between employee and his superiors.  Provides an opportunity to the employees for self reflection and individual goal setting  Helps in preparing employees for performing at high levels by continuously enforcing the required qualities.  Creates a healthy environment in the organization.

14

EVOLUTION OF PERFORMANCE APPRAISALS IN INDIA First Phase of Performance appraisals began in the early sixties were prepared in the form of Annual Confidential Reports (ACR0, also known as Employee Service Records (ESR) in some organizations. Negative remarks in the ACT or ESR were considered damaging for career growth. It was thus important to keep the boss in good humor so that the ACR or ESR did not get spoiled. The ESR was largely trait based and the traits used were sincerity, punctuality, dynamism, job-knowledge, loyalty, initiative, leadership etc. The ACR and it was this strict confidentiality that was supposed to serve as the motivating force for them. This may be considered as Phase 1 of the performance appraisal systems in India. In the Second Phase that spanned late sixties and early seventies, the main change was in communication of adverse remarks to the employees. It was felt that unless this system of communicating to the employees in writing any quality or trait on which they got a rating of 33 per cent or less. Even though the communication was sent to the employer by the personnel department or the establishment section in a routine manner, the employees took it very seriously because it required office played a key role in moderating the assessment, and he normally had all the powers to overrule the ratings of the reporting officer of the employee. In the Third Phase of appraisals, the employee was given a scope to state his own accomplishments in the confidential report form. The term annual confidential report was replaced during this period by Performance Appraisal. The appraisal process began at the end of the year with a statement by the appraise about his significant accomplishments during that year. Some organizations later turned this “opportunity given to the appraisee to express his significant achievements as self-appraisal”. However, this term was a misnomer as there was no scope for the appraisee to appraise himself. A few organizations subsequently developed this part of the appraisal by adding other questions about difficulties faced, plans for improvement next year etc. Everything else remained the same. The formats became a little more elaborate and in few cases, the appraisal included the details of the actual work done, largest achieved etc. The confidentiality, however, was maintained as before. In most cases, there was no communication to the appraisee about the performance assessment. In a few of them, a column of training needs was introduced. The appraisals continued to be control oriented and not developmental. 15

It was really in the he Fourth Phase that the system of performance appraisals underwent a quantum leap. This phase began in the mid-seventies and in a way was initiated in India by Larsen & Turbo Limited, followed by the State Bank of India , Bharat Earth Movers and few other organizations. This phase witnessed a shift from control to development, appraisal to analysis, strong links to training, confidentiality to openness and traits to quantifiable tasks and targets. The movement towards open and development oriented appraisal systems was initiated by L&T when it adopted a system making appraisal more performance based, participative (dialogic and interactive), open and developmental. It required the employee and his reporting officer to plan the performance (the term key performance areas or KPAs was introduced) or the appraisee in the beginning of the year, review it after six months with the boss, analyze the factors affecting performance, discuss developmental needs, have performance counseling and share the ratings with the appraisee. The system required active participation of the appraisee and was intended to be a performance planning, performance reviewing. And performance developing system. In the late seventies and early eighties, most organizations wee fascinated by this open and development oriented system. Some of them even started new HRD departments by appointing HRD managers having the skills to design, monitor and implement the system. While a few organizations switched over to this system, it took about 10 years of experience to fully understand its intricacies and dynamics. The change process was slow largely because the employees were not used to the openness introduced by the new system, the HRD managers did not have enough skill base to monitor it, and the top management lacked patience and perspective about its potential advantages. Several organizations could not get out of the mindset created by earlier confidential report system. They continued to use it for promotions, which were considered as the most important indicators of development. It is only by the mid eighties that organizations started setting down and feeling comfortable with the open appraisal systems. Phase Fifth has started only in last three years with organizations showing some maturity and growth in terms of their understanding of appraisals. This phase is characterized by a movement towards development in spirit and form. This is symbolized by the substitution of the term performance appraisal by performance review system, performance development system, performance analysis and

16

development to rewards and from comparative assessment to assessment in relation to plans. There is a movement from rewards and controls to culture building and development and the new phase also indicates a shift towards appraisal by multiple sources rather than by only the reporting officer.

17

PERFORMANCE APPRAISAL - PROCESS MAP

18

TRENDS IN PERFORMANCE APPRAISAL SYSTEM Performance appraisal in its traditional from known as ACR-Annual Confidential Report is often misused than used. Performance appraisal has now been recognized as a HRD function. In the last decade many organizations have reviewed and changed their managerial appraisal systems. 1)

There is a trend away from the composite appraisals with multiple objectives (e.g. performance planning, development rewards and promotions)to separate systems for different systems for different clusters of objectives.

2)

There is a move away from isolated appraisal system to the business linked one .

3)

There is shift away from closed confidential type to open dialogue and discussions based system.

4)

There is a movement quantitative (pseudo objective) to qualitative (interactive, improvement and process oriented) system.

5)

There is a movement away from boss assessed feedback to 360-degrees feedback involving customers, peers, team members, subordinates etc. in addition to supervisors.

6)

There is also a trend away from elaborate systems to simple ones.

7)

There is a shift from standard systems to flexible and group specific ones.

8)

There is a movement from result oriented systems to process oriented system.

9)

There is a movement from the assessment of individual performance to the development of team performance.

10) There is also a movement from complacency to experimentation through continuous research change. Performance appraisal refers to the assessment of an employee’s actual performance, behavior on jobs, and his or her potential for future performance. Appraisal has several objectives but the main purposes are to assess training needs, to effect promotions, and to give pay increases. Appraisal of performance proceeds in a set pattern. The steps involved are –defining appraisal objectives, establishing job expectations, designing the appraisal

19

programme, conducting performance interview, and using appraisal data for different HR activities. Two important contemporary techniques of performance appraisal include 360º appraisal and goal setting approach to appraisal also known as ‘Managing by Objectives’. Currently most of the companies are using one of the following Performance Appraisal Methods: 1). 360 Degree Appraisal Method 2). Rating Scale Method 3). Management by Objective Method Under the 360 Degree appraisal method the employee is rated from all angles i.e., by the superiors, subordinates, peers, suppliers, distributors, customers and clients. Under the Management by Objective method the employee goals are set mutually by the employee's and the management. And the employees are rated based on the accomplishment of these goals. Under the Rating Scale method each employee trait or characteristic is rated on a scale that usually has several points ranging from "poor" to "excellent" (or some similar arrangement).The traits assessed on these scales include employee attributes such as work quality, cooperation, initiative, punctuality and technical competence, etc. The selected traits should be in some way relevant to the appraisee's job. 360º APPRAISAL AND FEEDBACK The 360 degree appraisal involves rating of an employee or manager by everyone above, alongside and below him. Corporate like General Electric India (GE), Reliance Industries Ltd. (RIL), Crompton Greaves, Godrej Soaps, Wipro, Infosys, Thermax and Thomas Cook are all using this tool to find out truths about their managers.

20

Although deployed mostly as a fact-finding technique, 360 º appraisals are also used to design promotion and reward system in the organization. Concept of 360º Appraisal According to Milliman and others, “360-degree appraisal is the process of systematically gathering data on a person’s skills, abilities and behaviors from a variety of sources –the manager, peers, subordinates and even customers and clients”. Thus, appraisal of an employee is done by his superior, his peers, his subordinates and clients or outsiders with whom he interacts in the course of his job performance. In 360-degree appraisal, besides appraising the performance of the assesses, his other attributes such as talents, behavior, values, and technical capabilities are also appraised. Besides the employee himself, superior, subordinates and peers play an important role in the appraisal. Structured questionnaires are used to collect responses about the employee from his superiors, peers and subordinates. Several parameters relating to performance and behavior are used in the questionnaires. Each manager is assessed by a minimum of fifteen colleagues, at least two of them being his bosses, four of them peer, and six of them subordinates. Even the important customers or clients of the firm may also be requested to give their assessment of the concerned employee. The responses are presented collectively to the assesses in the form of charts and graphs. Comments and interpretations are presented later. Counseling sessions are arranged with the employee to remove the weaknesses identified in the 360 degree assessment. Merits of 360º Appraisal The merits of 360º appraisal are as under: (i)

The 360 degree appraisal leads to greater self-awareness of those appraised. It reveals strengths and weaknesses in their working styles.

21

(ii)

The gap between self assessment and the views of one’s colleagues of peer group in reduced.

(iii)

It facilitates empowerment of subordinates who get a say in the appraisal of their bosses.

(iv)

Inflexible managers are forced to initiate self-change.

(v)

Facts about organizational culture and ambience are brought to light by the multiple appraisals.

Limitations of 360º Appraisal The system of 360º appraisal suffers from the following limitations: (i)

The 360 degree appraisal system ignores performance in terms of goals.

(ii)

The candidate being appraised may not accept negative feedback from the subordinates and peers. He might feel humiliated.

(iii)

Responses from colleagues often tend to be biased.

(iv)

Linking rewards to findings under 360 degree appraisal can prove to be unfair.

(v)

The subordinates and peers might not be fully competent in appraisal.

22

Guidelines for Better Use of 360º Appraisal The use of multisource appraisal can be effective if the following guidelines are followed: (i) Involve people. Ask them who should serve as raters, and give them an opportunity to review and interpret the results. This will strengthen their commitment to both the overall process and the specific decisions. (ii) Ensure that relevant data are being collected. Focus on behaviors and outcomes that raters are capable of observing and are competent to evaluate. (iii)

Ensure that no single rater can dramatically affect the outcome. Use a

large enough sample or eliminate the highest and lowest scores to ensure that no one rater can skew the data. (iv)Train raters in what and how to observe. The better people understand what they look for and how to record”critical incidents” (specific things the person said and did that can be used as examples to support their ratings, and better the quality of the information that will be collected. (v) Ask raters to support their evaluations. Whenever possible, raters should discuss their observations and evaluations with other raters. These discussions should trigger thoughts and combat selective memory. Raters should also be required to provide a rationale for their rating to other raters. This would prevent people from using the process to act on personal grudges. (vi)Move slowly and start small. Any organization considering using 360 º feedbacks in the appraisal process should begin by using it for development purpose only and then gradually to make it a part of appraisal system. Even then, the focus should be on the goal-setting portion of the appraisal. People need to get comfortable with the idea of multisource feedback as a

23

development tool before they can accept it as part of the formal performance management process. A lot of organizations seem to be hurrying to integrate 360º feedback into the human resource management system. Multisource feedback really does have the potential to enhance human resource management system. However, 360º feedback won’t fix a system that does not work. (vii)

Develop a culture that supports open feedback. Not surprisingly, 360º

feedback works best in companies where the environment is participatory rather than authoritarian, where giving and receiving feedback are the norm and are seen as valuable sources of information. If the current system (where only the supervisor does the appraisal) is not working due to lack of straight talk and hesitancy to give direct feedback, it is essential to introduce openness in the organization. (viii)

Clear and agreed on performance measures and behaviors. When 360º

feedback is used for development only, the organization may be able to settle the list of behaviors and skills that have reasonable face validity and general support: “coaching” or “team building”, for instance. However, when the feedback is being used to determine performance ratings, the result and behavior for which people are held accountable must be clear, unambiguous and specific. (ix)The users must support the system and be willing to invest the time required to make it work. The introduction of 360º feedback makes an already time-intensive appraisal process even more demanding. It means more data to collect and more information to process for the additional feedback.

24

(x) Sound feedback process. While the way the data are collected and presented are always important, two aspects of sound 360º feedback procedure are particularly relevant when the data are used for appraisal purpose: the validity and reliability of the practices for which people will be measured and the confidentiality of the raters. Elements of 360º Appraisal Program The elements of 360º appraisal program are as follows: (i) Appraisal by Superior/ Boss. This is the most important element of the 360 degree appraisal. Here the focus is to provide constructive feedback on employee’s performance and his development needs. It is the responsibility of the superior to ensure that employee sets goals not only in the area of business performance but also in the areas that are vital to the organization. These are called corporate thrust areas and may include relationship management, safety and quality development. If the working style of the employee is a concern area and needs improvement for enhancing effectiveness then goal may be set for “style of functioning” such as, from short-term to long-term orientation. It is expected of the superior to put career aspirations of the employee in proper perspective. Firstly, superior must communicate to the employee in a clear way what the organization plans for the employee. Secondly, if the employee has unrealistic aspirations, then also it is superior’s responsibility to share with the employee the realistic picture given his/ her strengths, development areas, experience, qualifications, and the organization’s ability to provide growth. This is how the superior’s appraisal has a very significant role to play. (ii) Appraisal by the Peer Group. The peers play an important role in the life of an employee in the organization. The can also provide a deep insight into

25

the personality make up, attitude and style of working of the employee. For better results, it is essential to select the right peers for the purpose of appraisal. They must include peers both from within the department as well as from the other departments, which are directly connected with the working of employee’s department. The concept of internal customers comes handy here. Three to five internal customers should normally be chosen for peer appraisal. In order to achieve the purpose of 360º appraisal, the peer group appraisal must strive to get the feedback on (a) employee’s working style, (b) sensitivity towards others, (c) spirit of co-operation and collaboration, and (d) ability to work as a team member. (iii)

Appraisal by the Subordinates. Another distinctive feature of 360º

appraisal is the role of subordinates in appraisal. It signifies two things. Firstly, it is a clear expression from the organization that it encourages openness and that feedback is a two-way process. Secondly, it is a systemic recognition of the fact that an employee’s subordinates do play a vital role in his appraisal. Thus, the purpose of subordinate’s appraisal is to get first hand assessment of how the subordinates perceive their superior to be in terms of: (a) delegation of authority, (b) guiding and training of subordinate, (c) motivation of subordinates, (d) team building, etc. Upward appraisal provides an opportunity to the subordinates to give feedback to their superior on the kind of things they would like him/ her to continue doing (status quo), things they would like him/ her to stop doing (areas for corrective action), things they would like him/ her to start doing (areas for new initiatives). (iv)Self Appraisal. Any program of 360º appraisal would not be complete without self appraisal by the employee whose performance is being appraised.

26

Self appraisal facilitates the employee to identify his/ her strengths and weaknesses and provides an opportunity to assess the performance. In a well established system, employees use the self appraisal very effectively and organizations also find that employees often are their own strongest critics and display very high degree of objectivity. Self appraisal also provides an opportunity to the employee to express his career moves for the future. However, this is only for gathering information and that under the given organizational constraints, it may not be possible to provide the career progression desired by the employee. Nevertheless, it is in the organization’s interest to at least know on a first hand basis the aspirations of its employees.

27

FINDINGS AND ANALYSIS Organization Structure and Design 1- Jindal Brothers is a young, dynamic organization and is going strong on the stock market. 2-

The company is well aware of the dynamic environment of software, it is operating and in order to keep it with the pace of the environment it believes in constant up gradation of courses. Organization structure and design of the company is such that it supports this change.

3-

Jindal Brothers has a matrix kind of a structure wherein it takes the form of combination of structures. Matrix structures are adopted became there is more than one factor around which the structure can be built.

4-

This matrix structure at Jindal Brothers improves the quality of decisionmaking where interest conflicts arise and direct contacts replaces bureaucracy

5- . This increases the motivation of the managers and development of wider involvement in strategies. Although at times the company faces high risk of dilution of priorities became e people do not know who is responsible for what. 6-

An organization is a network of authority, responsibility and relationships. Different organization structure consists of different type of relationships.

Line Organization

28

It is the traditional type of organization. It refers to a direct chain of command from top to bottom. In the line organization the lines of direction are straight and vertical. Authority and responsibility flow vertically in an unbroken straight line from one level to another. Every superior has complete command over his subordinate and every subordinate has to report his work to only the senior or to the level above his own level. Staff Organization Staff may be of three types: Personal Staff: It consists of personal assistants attached to individual line executives. Personal staff is employed to carry out those responsibilities of an executive, which he cannot or does not want to delegate to others. Specialized Staff: It consists of specialists in different functional areas e.g. personnel, accounting, legal and public relations etc. A specialized staff department serves as a fountainhead of expertise for the entire concern. General Staff: It includes a group of experts attached to the central office and it provides general advice mostly to the top management. Complaint Handling As part of the process for capturing customer complaints and acting on them, Jindal Brothers has procedures that ensure that each customer complaint is captured, recorded and reported as part of a formal review system. The process includes related activities such as escalation of a problem, tracking each complaint to closure, and 29

creating new procedures (or modifying existing ones) to prevent similar problems from repeating in the future. Employee Excellence At Jindal Brothers they believe that they can build a world class structures. Their vision document, which drives each employee as well as the organization itself, reflects Jindal Brother's commitment towards customers and employees. Starting from the recruitment process and culminating in annual reviews, Jindal Brothers has quality processes for tracking and maintaining quality standards. Recruitment For recruitment, Jindal Brothers administers various tests to the applicant. These include aptitude tests, IQ tests, management tests, and personality tests. Each of the tests captures different information about the individual so that Jindal Brothers can ensure that the person is appropriate for the job and will fit into the company culture. Goal Setting Before starting on the job, employees discuss their role and responsibilities with their supervisors. This results in the setting of goals and objectives for each individual for the coming year. This process clarifies the expectations from each individual during the year. Each employee is expected to monitor his/her goals by filling in a focus report every month, which is then discussed with the supervisor. Training Jindal Brothers recognizes the fact that the skills of employees need to be upgraded constantly. Jindal Brothers trains each and every employee continually through the year. In fact, Jindal Brothers has one of the highest training days per employee in the world: each Jindal Brothers employee receives over 11 days of training each year. Jindal Brothers has an employee training division which conducts in-home e, residential training programs exclusively for Jindal Brothers employees.

30

PERFORMANCE APPRAISAL AT JINDAL BROTHERS While on the job, performance reviews of every employee are done every quarter. The reviews are done with a view to helping the individual excel at his/her workplace. In case there are any training requirements, these are noted and acted upon in the coming quarter. Also, the goals and objectives for the employee are re-visited for The performance appraisal mechanism is carried out at Jindal Brothers for promotional purposes These are done so as to motivate the employee and improve his performance level. The method is as follows: a) Establishment of performance standards with the employees b) The goals are set mutually as per measurable standards.

31

c) The actual performance is hence measured. d) After measuring of the actual performance, the same is compared with the standards set e) The appraisal is then discussed with the employees. f) And finally, if need arises corrective action is initiated. For this purpose the corrective action is actually identified through brainstorming exercises initiated by the departmental heads at all the Jindal Brothers. It is then measured as a tool to evaluate the past performances of the employees.

32

Some of the methods used at Jindal Brothers are: 1. Key Performance Index 2. 360 Degree Feedback 3. Paired Comparisons 4. Behaviorally Anchored Rating Scale 1. KPI-Key Performance Index It is based on the performance level of the employee generally classified on the basis of: •

Targets achieved

•

Ratings through students’ feedback forms

•

Punctuality and regularity

•

Day to day performance

This is given after every module at the centers. Thus we can observe that the appraisal system is not a biased one but based on performance and productivity basis. All the respective heads of the employee together with the senior persons at the center brainstorm and then give the promotion. 2. 360 Degree Feedback This feedback system involves the participation of: •

Coworkers

– 40%

•

Subordinates

- 20%

•

Superior

- 40%

33

Thus the feedback given by these members at Jindal Brothers is considered under a holistic view and then the employee is given a performance appraisal. This evaluation method involves 40% feedback from the coworkers which says that the employee should not only maintain good rapport with the senior or junior but majorly with the coworkers also. 3. Paired Comparisons The evaluator compares all possible pairs of subordinates on their overall ability to do the job. Due to the subjectivity of evaluating overall performance some managers me e a number of different job related dimensions when comparing. 4. Behaviorally Anchored Rating Scale (BARS) It is a sophisticated method of evaluating the employee based on the employee behavior. It is a numerical scale that is anchored by the seniors of the organization at various centers. This is highly confidential and the information is sent in sealed envelopes and opened only at the time of the final evaluation. There is no further discussion regarding this scaling, thus it is not given enough weightage.

34

SURVEY FINDINGS In this section, basic data for a group of 100 employees from lower, middle, senior and top managers is presented on various attributes of performance appraisal. Frequency and frequency percent scores were computed for each of the groups of the entire selected variable. 1. Finding through the Questionnaire Through the questionnaire it was found that promotions were and known to most of the top and senior management while middle and lower management were a bit not clear about it. This could be attributed to the fact that senior and top management were more involved in decision making and policy formulation than are the middle and lower management. Same reason could be attributed to the fact that code 1 managers were absolutely clear of what was expected out of them every year, whereas 50% senior management ware clear or partly clear about the same and the about 20% of middle management were not clear about it and still further, the 71% of lower management was not aware of what was expected out of them every year. 85% of code 4 employees said that they could express their reason of failure. The responses of 50% of Middle Managers were bit favorable whereas 100% senior management also thought that they did not get the opportunity to express their cause of failure. The 60% of top management were portly able to express their cause of failure. This may be because the appraisal system is more of less performance based and human factor is by and large overlook. Whereas, at the lower levels of the organization, performance can be quantified, and the managers are made accountable at the higher echelons the tasks are too complex and therefore cannot be assessed on the basis of quantified performance and therefore the top and senior management

35

believed that the promotions are also for motivation whereas the attitude wanes as the level of hierarchy goes up. This is probably because of the appraisal of performance based on the quantity or results. If the employee’s output is good of better they get promotions and also get motivation to achieve better performance. At the higher levels the results are more of subjective nature therefore promotions does not accrue on the basis of quantified results only. Most of the managers feel that the mechanism for potential appraisal is not adequate. This may be, because the training programmers are also not developed. As far as feedback is from superiors is concerned, most of the top and senior management were of the view that they constantly receive feedback. This is because, they take decisions crucial to the existence of the organization and therefore are closely watched and monitored as compared to the employees in the lower & middle levels. Again the top management felt that they with their superior decide about their job but 100% of senior management did not feel the same at all. This is because again due to power centeredness and power difference in the organization, being a tall organization the superior are not accessible to their subordinate. 60% of lower management thought that their creativity was definitely not adequately recognized whereas the top management believed that the organization encouraged creativity. This highlights the gap of communication in the organization and differences in the perception of culture in the organization by different grades of employee. 70% of lower management thought that the system was not free from biases and same is felt by most of the middle, senior and top management. This shows that human instincts and behaviors influence the performance appraisal system.

36

60% of lower management was not clear about the goals and objectives of the organization. Most of top management thought that they were clear or very clear, about the organization goals. This is because, the power distance is extent and communication system of the organization is not very effective. This also shows that transparency is lacking in the system. 70% of lower managers thought that the performance appraisal system did not identify their training needs. 80% of senior managers also thought the same. But the view of top management differed in the sense that they felt that the system helped them surface their training needs. The reason being that the training programmes are not fully developed and are not constantly evaluated in the organization. The top management felt that there was a scope of super review. The senior management also felt a bit the same but lower and middle management keep attending meetings and had already developed rapport with their superiors and so could easily talk out their appraisal results whereas this is not so for lower and middle management. They are not able to approach their senior easily and are therefore could not appeal for superreviews. 60% of lower managers said that they do not get opportunity for self review and reflection. This is because performance appraisal is lacking human touch to it. The appraisals are entirely based on performances, overlooking the cause of successes and failures. The appraisal system thus does not meet individual’s developmental needs and also does not contribute to employee’s job satisfaction and moral development.

37

2. Findings from Observation and Discussions The organization believed that self appraisal is the best for managers and above. To improve interpersonal communication and behavior assessment by peers and subordinates is essential. The performance of the employees is not regularly monitor and the required feedback is provided to the subordinates from time to time. The appraisals are conducted at fixed intervals. The organization believes in using appraisal for rewarding and increments. There was a neither formal nor informal discussion on job specification and tasks to be accomplished for various departments. There was no formal performance appraisal taking place till now in the organization. There fore, there were no written records of such activity in the personal files of the employees. However people were being appraised informally by the superiors and got promoted or incremented accordingly. It would not be wrong to say that interpersonal relations and personal biases (i.e. liking and disliking influence the appraisals in the organization). The management is in the process of restructuring and developing such policy in the organization

38

.

ANALYSIS & INTERPRETATION This chapter deals in tabular presentation results and their analysis for the purpose of easy reading the section has been divided into two parts. •

Tabular form of Response

•

Inference

•

Remarks on each question

39

1. In your company, the key competencies required for each job are already identified? Response Category

No. of responses

Percentage

Very true

0

0

True

4

8

Partly true

9

18

37

74

Not true 80 70 60 50 40 30 20 10 0

Very true True Partly true Not true No. of responses

Inference: Most of the respondents (74%) found the above statement to be ‘Not True”. This was followed by 18% of the respondents feeling that this statement was ‘Partly True’ for their organization. Only 8% of the people found it to be ‘True’. Remarks: Although the appraise does not have a clear understanding of what is expected of him at the beginning of the year (Inference I), both he and the appraiser know what his job is all about. This also shows that although an employee knows what his current to do to be rated higher by the reporting officer. The responsiveness in category of Partly True and Not True may be due to the face that job content in Jindal Brothers is flexible and not well defined and some people find it difficult to define their jobs. However, most of the people have a general idea of the scope of their jobs.

40

2. There are mechanisms that help employees develop their potential for the next round of job? Response Category

No. of responses

Percentage

Very true

0

0

True

5

10

Partly true

25

50

Not true

20

40

50 40 30

Very true

20

True Partly true

10

Not true

0 No. of responses

Inference: Quite a large number of respondents (40%) shared the view that the appraisal system did not give a clear understanding of all appraisals, job to both appraiser and appraise by saying that it was ‘Not True’. Only 50% and 10% of the respondents felt that the statement was ‘True’ and ‘Partly True’ respectively. Remarks: Although the appraise does not have a clear understanding of what is expected of him at the beginning of the year (Inference I), both appraisee and the appraiser know what his job is all about. This also shows that although an employee knows what his current to do to be rated higher by the reporting officer. The responsiveness in category of Partly True and Not True may be due to the face that job content in Jindal Brothers is flexible and not well defined and most people find it difficult to define their jobs. However, most of the people have a vague idea of the scope of their jobs.

41

3. Employees regularly receive feedback about their potential for higher level jobs? Response Category Very true

No. of responses

Percentage

0

0

True

8

16

Partly true

7

14

35

70

Not true 70 60 50 40 30 20 10 0

Very true True Partly true Not true No. of responses

Inference: 70% of the respondents agreed that the appraisal system did not helped them to know their potential to perform at higher levels. Plan their performance well by saying that it was ‘Not True’. Only 16% and 14% people felt that this statement was ‘True’ and ‘Partly True’. Remarks: The above inference shows that the PA system in Jindal Brothers does not give feedback about ‘planning for performance’ to its employees. It helps anticipating work needs in order to arrange work in logical order. It also helps in devising efficient methods to attain pre-determined plans. Again due to flexibility in job content, some people may have found problems in planning their performance systematically.

42

4. Job rotation is practiced widely to help people develop their potential in new areas? Response Category Very true

No. of responses

Percentage

7

14

True

18

36

Partly true

25

50

0

0

Not true 50 40 30

Very true

20

True Partly true

10

Not true

0 No. of responses

Inference: About 50% of the respondents felt that the above statement was ‘Partly True’. It was followed by 36% people feeling that it was ‘True’ with 14% believing that it was ‘Very True’. Remarks: Job rotation is the most economical way of providing training to the employees. It facilitates both organization and individual development. Job rotation gives an individual hand on experience for carrying out various different functional activities. The performance appraisal system should include this process in the training need identification performance.

43

5. The appraisal system provides an opportunity for self-review and reflection? Response Category

No. of Responses

Percentage

Very true

0

0

True

0

0

Partly true

13

26

Not true

37

74

80 70 60 50 40 30 20 10 0

Very true True Partly true Not true No. of Responses

Inference

:

There is a general agreement on then fact that the PA system in Jindal Brothers does provide ample opportunity for self-review and reflection. 74% of the people felt that it was ‘Partly True’ with 26% agreeing.

Remarks

:

The presence of self-appraisal procedure in the PA appraisal system is an important reason for the above inference. The self appraisal includes questions on major achievements, constraints in performance, type of training required, tasks/activities undertaken successfully during the year, problems faced etc. It also includes suggestions on making the job interesting and challenging and plans to improve effectiveness. Due to this fact, employees may have felt that they were participating actively in their own appraisal by self -review and reflection on various issues.

44

6. Promotions are based strictly on need rather than to reward individuals? Response Category Very true True Partly true Not true

No. of Responses 0 4 25 21

Percentage 0 8 50 42

50 40 30

Very true

20

True Partly true

10

Not true

0 No. of Responses

Inference

:

50% of the respondents believe that the above statement is ‘Partly True’ This was closely followed by 42% of the respondents rating it as ‘Not True’ and 8% of the respondents feeling that it was ‘True’.

Remarks

:

The performance appraisal is completely need based the organization recognizes and promotes high achievers only if there are vacancies available in the organization. This has a negative impact on people who are not rewarded and promoted duly for their good performance. There should be a system of rewarding employees either in monetary terms or in terms of recognition.

45

7. The appraisal system gives each appraisee an idea of what is expected of him next year? Response Category Very true True Partly true Not true

No. of Responses 0 10 26 14

Percentage 0 20 52 28

60 50 40

Very true

30

True

20

Partly true

10

Not true

0 No. of Responses

Inference

:

52% of the respondents felt that the above statement was ‘Partly True’. This was followed by 28% and 20% of the respondents feeling that it was ‘Not True’ and ‘True’ respectively.

Remarks

:

Each employee needs to have an idea as to what accountabilities will he have if his appraisal is given a good remark for working at higher levels. The appraisee should know his potential, which will go a long way in his higher level jobs.

46

8. It is designed to aid the appraisee and appraiser jointly understand the formers job? Response Category Very true True Partly true Not true

No. of Responses 0 14 22 14

Percentage 0 28 44 28

50 40 30

Very true

20

True Partly true

10

Not true

0 No. of Responses

Inference

:

There was a mixed response to the given statement. 44% of the responses consisted of “Partly True’ ratings. 28% respondents believed that this was ‘Not True’ whereas 28% believed that this was ‘True’.

Remarks

:

The above inference implies that Jindal Brother’s PA system does not score well in the aspect of transparency in communicating

an

employee’s

performance

through

performance review and discussion. The discussions between appraisal processes. The interaction on self appraisals is not a common feature and is only done on certain occasions (exceptionally good or bad performance etc.) The presence of 44% responses as “True” may be due to good relationship and open communication shared by some of the appraiser appraise pairs.

47

9. The performance appraisal provides an opportunity for self review and reflection? Response Category very true true partly true not true

No. of Responses 0 2 25 23

Percentage 0 4 50 46

50 very true

40 30

true

20 partly true

10 0

not true

No. of Responses

Inference

:

Most of the respondents agreed that the appraisal system catered to their development needs (50% believed that it was “Partly True”) and it was very closely followed by 46% saying it was “Not True”. There were 4% cases, which believed that it was ‘True’.

Remarks

:

Although the inference indicates that the PA system allowed mutuality, trust and open communication between superior and subordinates, there may be chances of biases in employees while rating this statement. The answers may have varied depending on proximity etc. of the employee with his superior. However present of 50% ‘completely true’ answers help us in obtaining a general view on the ability of PA system to allow communication between superiors and subordinates in Jindal Brothers. Therefore, it can be assessed that the Performance Appraisal

does

provide

ample

opportunity

for

open

communication between appraiser and appraise.

48

10. The appraisal procedure allows the appraisee to express his developmental needs? Response Category very true True partly true not true

No. of Responses 0 8 16 26

Percentage 0 16 32 52

60 very true

50 40

True

30 20

partly true

10 0 No. of Responses

Inference

:

not true

The most common response on above statement was an astounding ‘Not True’ with 52% people agreeing that the PA system was free of any biases. It was followed by 32% saying that it was ‘True’ and 16% saying that it was ‘Partly True’.

Remarks

:

The above inference implies that people are satisfied with the PA system in Jindal Brothers and believe that it provides scope for developing their potential. This may be due to the fact that the self appraised of the appraise invites suggestions on job enrichment, training needs and steps to be taken to improve individual’s effectiveness.

49

11. The system has scope to correct the biases of the assessor through a super review? Response Category

No. of Responses

Percentage

very true

0

0

true

2

4

partly true

14

28

not true

34

68

70 60 50 40 30 20 10 0

very true true partly true not true

No. of Responses

Inference

:

68% of the people rated the above statement as ‘Not True’ 28% believed it was ‘Partly True’ with 4% disagreeing by saying that it was ‘True’.

Remarks

:

A performance appraisal system, which is perceived as ‘bias -free’ by its executives, is an achievement for the organization. In the PA system the reporting officer appraises a section of people whereas the reviewing officer appraises the performance of an entire department. also the reviewing officer is the immediate superior of reporting officer. Any disagreement between the assessments of an employee has to be duly discussed and recorded. Also, any noticeable difference of opinion between self appraisal and appraisal by reporting officer has to be accounted for. All the above factors help in correcting the biases,. if any, of reporting officer.

50

12. The appraisal system provides for a frank discussion between appraiser and appraisee? Response Category

No. of Responses

Percentage

very true

0

0

True

6

12

partly true

0

0

44

88

not true

100 very true

80 60

True

40 partly true

20 0 No. of Responses

Inference:

not true

An astounding 88% rated the above statement as not true with 12% that it was true.

Remarks

Although, most of the people felt that there was mutuality and trust between appraiser and appraise, it may again depend on the proximity and relationship shared by an employee and his/her boss. The ratings may be based, as the employees may have felt that a negative answer may adversely affect them. The reason behind this conclusion is that a low score on extent of communication and discussion between appraisers and appraise and high score on mutuality and trust give a contradictory view.

51

13. The procedure allows for the communication of CEO‘s goal to the workforce? Response Category very true true partly true not true 80 70 60 50 40 30 20 10 0

No. of Responses 0 2 10 38

Percentage 0 4 20 76

very true true partly true

No. of Responses

Inference

:

not true

The typical response in this case was ‘Not True’, by 76% of the respondents. 20% rated the above statement as ‘Partly True’ and 4% as ‘True’.

Remarks

:

Even if half of the respondents gave a mid-way answer, presence of 44% ‘Slightly True’ answers give a negative picture of the above statement. This implies that the business goals are not well integrated with individual goals. There is no direct linkage between the management plans and evaluation criteria. This may be due to the fact that either the business goals are not quantified enough or the management is not quick enough to communicate its plans to the staff below.

52

14. The appraisal system brings out the training needs of the employees. Response Category very true True partly true not true

No. of Responses 0 3 22 25

Percentage 0 6 44 50

50 very true

40 30

True

20 partly true

10 0

not true

No. of Responses

Inference

:

50% of the respondents believed the above statement to be ‘Not True’ closely followed by 44% people believing it to be ‘Partly True’. Only 6% believed it to be ‘True’.

Remarks

:

A few people get the training related to their competencies skills that needs to be enhanced for successful completion of their work. most of the people do not get adequate training according to changes in their job description i.e. responsibilities and KRAS.

53

15. The performance appraisal system clarifies the career prospects, aspirations and intentions?

Response Category

No. of Responses

Percentage

very true

0

0

true

5

10

partly true

40

80

not true

40

80

80 70 60 50 40 30 20 10 0

very true true partly true not true

No. of Responses

Inference

:

The typical response (80%) for the above statement was ‘Not True’ 10% employees believed it to be ‘Partly True’ with an equal 10% employees believing if to be ‘Not True’.

Remarks

:

The general picture drawn from the above inference is that all the employees are not clear as to what the PA system is all about and what is the reason behind its existence. This shows that PA system has acquired an important status in Jindal Brothers with all employees acknowledging its presence and essence.

54

16. The appraisal system provides a rational basis for salary recommendations? Response Category

No. of Responses

Percentage

very true

0

0

True

8

16

partly true

14

28

not true

28

56

60 very true

50 40

True

30 20

partly true

10 0 No. of Responses

Inference

:

not true

56% of the respondents felt that the above statement was ‘Not True’. 28% responses included ‘Partly True’ ratings whereas 16% responses included ‘True’ ratings.

Remarks

:

The employees do not want a fixed increment for their great performance. The company should make recommendations related to salary on the basis of regular performance feedback about every employee since the frequency of performance measurement varies from department to department, it is difficult to carry out this work smoothly.

55

17. The company relates reward to your performance? Response Category

No. of Responses

Percentage

0

0

10

20

4

5

36

72

very true True partly true Not true 80 70 60 50 40 30 20 10 0

very true true partly true not true

No. of Responses

Inference

:` Most of the respondents (72%) felt that the above statement was ‘Not True’. 20% believed it to be ‘True’ whereas a mere 8% felt that it was ‘partly True’.

Remarks

:

The company uses the reward system as a motivating force for enhancing the performance of its employees. Rewards should be promptly given to high achievers in terms of increment, promotions,

increased

job

responsibilities

etc.

for

their

accomplishment.

56

18. What kind of an appraisal system will bring out the best of an employee?

Response Category appraisal by all superiors appraisal by immediate superior appraisal by reference team appraisal by reference team and self.

No. of Responses 10 5

Percentage 20 10

15 20

30 40

appraisal by all superiors

40 35 30 25 20 15 10 5 0

appraisal by im m ediate superior

No. of Responses

appraisal by reference team appraisal by reference team and self.

Remarks

:

This shows that the relationship between appraiser and appraise, in Jindal Brothers, with respect to planning the performance is quite good. The subordinate in planning his performance. The appraiser helps the appraise in testing the soundness of his goals as well as of his plans for achieving them. This implies that there is active participation of both appraiser and appraise in performance planning. The reason behind ‘Not True’ answer may be due to the fact that many jobs in Jindal Brothers are not well defined and therefore an elaborate planning on them is not done.

57

CONCLUSIONS & RECOMMENDATIONS 1. This company proves that a major amount of work towards developing an effective and efficient performance appraisal system has not been accomplished to the fullest.

2. It seems that the organization is genuinely interested in improving the efficiency and utility of performance appraisal system to succeed in today’s dynamic environment; t

Outward Orientation Performance Appraisal System The appraisal system should be more sensitive and responsive to current competitive environment. This is possible through making the organization. •

Quality conscious in products and services to match international standards. •

Customer oriented (internally as well as externally)

•

Cost effective

•

Technology oriented

•

Focused towards collaboration and teamwork

•

People oriented

•

Focused towards performance standards

•

Focused towards values and culture that would help unbottle hidden talent.

In achieving the above, the PA system have a catalytic role to play.

58

PERIODIC PERFORMANCE REVIEW AND PLANNING: There should be some aspect in the PA forms, which deals with the effect of Internal Influences, organizational influences and external influences on performance of employee to make the PA system more sensitive to changes.  Increase awareness of company goals in order to integrate company and individual expectations.  Conducting training workshops for appraisers to remove biases and errors in appraisal.  Increasing transparency and open communication and minimizing confidentiality in performance review discussions. The work done towards modifying and developing performance appraisal systems, time to time should be continued. Integrating TQM into Performance Appraisal •

Individual rewards should be delinked with the PA system. The focus should

shift to team rewards. To recognize individual excellence, the team rewards. To recognize individual excellence, the team should recommend rewards to tone up motivation levels in the entire team. •

Continuous feedback and transparency in every system

•

Focus on customer delight, both internal and external

Linkage with Rewards Good performers should be recognized and rewarded, whereas weak performers need to be encouraged to become better performers. PA systems when liked with individual rewards and promotions create more problems than they help in motivating people. They encourage fewer employees and discourage more. They do not develop the team spirit but rather enhance interpersonal comparisons and power politics. The focus should be shifted from rewarding the performance of few to development of performance of many.

59

However there is also a need for recognition and rewarding good work. Alternative systems of rewarding with multiple reward/recognition mechanism are needed. But these systems should be separated from other systems (like career planning). Role of HRD •

HRD should develop relevant competencies and work through empowering

the line managers. •

Development of subordinates and teams should be key function of line

managers. •

HRD should facilitate the development of behavioral, managerial and

technical (multi functional) competencies in line managers. •

“Role analysis” should find a place in Jindal Brothers “role directories should

be published with key functions for each role. •

System effectiveness should be ensured through periodic review and survey of

organizational climate, ethos, organizational effectiveness and employee satisfaction (concerning PA systems). IMPLICATION OF THE PROJECT In a simple way performance appraisal is meant to be an exercise to value a estimate what a person has done and how has he done. The nature of Performance appraisal and its effectiveness depends a great deal on how human resources in the organization are viewed and treated. People are to be treated as resources of the organization. Unlike the other resources, the human resources have the capability of expanding to unlimited extents with proper investment in human capabilities. Therefore, an organization interested in developing the capabilities of its employees, should understand the nature and capabilities required to perform different functions as well as the dynamics underlying the development of these capabilities in an organizational content. These capabilities can be considered to fall under four categories. They are:-

60

(i) Technical capabilities (ii) Managerial capabilities (iii) Behavioral (human) capabilities iv) Conceptual capabilities The extents to which the various capabilities are required for the performance of the job differ from level to level in the organizational hierarchy. New Objective of Performance Appraisal Performance appraisal system can serve the following purposes if designed properly (a) Help each employee to understand more and more about his role and become clear about his functions. (b) Helps each employee to understand his own strengths and weaknesses with respect to his role and functions of the company. (c) Helps identifying the developmental needs of employees. (d) Helps increase mutuality between employee and his superiors. (e) Provides an opportunity to the employees for self reflection and individual goal setting (f) Helps in preparing employees for performing at high levels by continuously enforcing the required qualities. (g) Create a positions and healthy climates in the organization.

61

RECOMMENDATIONS

1. The company should try to avoid employee resistance, which is associated with change worlds true change follows instance. This for all kinds of systems be it Performance Appraisal. 2. The HR Dept should attempt to obtain the maximum agreement of Managers in respect of needs and objectives and purpose of the systems. Being in the field of it improve the frequency of the trading modules and workshops. 3. More stress relieving packages should be offered to the mentally stressed staff. 4. Overtime should be taken care of at time of performance appraisal, which would motivate the employees to perform better for longer hours. 5. Performance appraisal should after at proper span of time . 6. Performance appraisal should be done by expert person.

SAMPLE QUESTIONNANIRE 62

I have undertaken a project on PERFORMANCE APPRAISAL SYSTEM. The information furnished by you will help knowing the effectiveness of the present appraisal and reward system and if need be designing of a new appraisal system. The data will be kept confidential and will be used for academic purpose only. 1. In your company, the key competencies required for each job are already identified. a) Very true b) true c) Partly true d) not true 2. There are mechanisms that help employees develop their potential for the next rung of job. a) very true b)true c) partly true d) not true 3. Employees regularly receive feedback about their potential for higher level jobs a) very true b)true c) partly true d) not true 4. Job rotation is practiced widely to help people develop their potential in new areas. a) very true b)true c) partly true d) not true 5. Your company’s promotion policies are clearly defined and shared with all employees. a) very true b)true c) partly true d) not true 6. Promotions are based strictly on need rather than to reward individuals? a) very true b)true c) partly true d) not true 7. The appraisal system gives each appraisee an idea of what is expected of him next year? a) very true b)true c) partly true d) not true 8. It is designed to aid the appraisee and appraisers jointly understand the former’s job? a) very true b)true c) partly true d) not true 9. The performance appraisal provides an opportunity for self review and reflection? a) very true b)true c) partly true d) not true

63

10. The appraisal procedure allows the appraisee to express his developmental needs? a) very true b)true c) partly true d) not true 11. The system has scope to correct the biases of the assessor through a super review? a) very true b)true c) partly true d) not true 12. The appraisal system provides for a frank discussion between appraiser and appraisee? a) very true b)true c) partly true d) not true 13. The procedure allows for the communication of CEO‘s goal to the workforce? a) very true b)true c) partly true d) not true 14. The appraisal system brings out the training needs of the employees. a) very true b)true c) partly true d) not true 15. The performance appraisal system clarifies the career prospects, aspirations and intentions. a) very true b)true c) partly true d) not true 16. The appraisal system provides a rational basis for salary recommendations. a) very true b)true c) partly true d) not true 17. The company relates reward to your performance. a) very true b)true c) partly true d) not true 18. What kind of an appraisal system will bring out the best of an employee? a) appraisal by all superiors b) appraisal by immediate superior c) appraisal by reference team c) appraisal by reference team and self. 19. How do you support your subordinates? _____________________________________________________________________ _____________________________________________________________________ ____________________________________________________________________.

64

sss

BIBLIOGRAPHYC.R KOTHARI C.B GUPTA 360 DEGREE APPRAISAL (TV RAO) INTERNET

65