CHAPTER - I

INTRODUCTION AND DESIGN OF THE STUDY

1.1 INTRODUCTION

Performance appraisal is not something new. The appraisal system existed in early
centuries, though the nature of appraisal was not so formal and the tools used were not so
scientific. In fact the appraisal gained momentum in the post Second World War period with
the advent of professionalization in management. At the early stages the performance
appraisal was done just on the basis of the degree to which a person possessed certain traits,
which were considered essential for effective performance of a particular task.
Performance Appraisal of individuals, groups and organizations is common practice of
all societies.

The history of performance appraisal is quite brief. Its roots in the early 20th century
can be traced to Frederick Taylor’s pioneering time and motion studies. But this is not very
helpful, for the same might be said about almost everything in the field of modern human
resources management. As a distinct and formal management procedure of evaluation of
work performance, appraisal system was used dates from the time of the Second World War.
Yet in a broader sense, the practice of appraisal of employee’s performance in different work
places is a very ancient art. Appraisal, it seems, is both inevitable and universal for human
activities. In the absence of a carefully structured system of appraisal, people will tend to
judge the work performance of others, including subordinates, naturally, informally
and arbitrarily.

The human inclination to judge can create serious motivational, ethical and legal
problems in the workplace. Without a structured appraisal system, there is little chance of
ensuring that the judgments made will be lawful, fair, defensible and accurate. Performance
appraisal systems began as simple methods of income justification. That is, appraisal was
used to decide whether or not the salary or wage of an individual employee was justified. The
process was firmly linked to material outcomes. If an employee’s performance was found
to be less than ideal, a cut in pay would follow. On the other hand, if their performance was
better than the supervisor expected, a pay rise was in order. As a result, the traditional
emphasis on reward outcomes was progressively rejected. In the 1950s in the United States,
the potential usefulness of appraisal as tool for motivation and development was gradually
recognized. The general model of performance appraisal, as it is known today, began form
that time.

1.2 STATEMENT OF PROBLEM

Performance appraisal is a veritable tool for employee productivity. The essence of

performance appraisal is to checkmate the contribution made by every employee and to
know how well they are going on with their task. Appraisal help to identify the skilled and
performing employee of an organization to increase their salary and other benefits that can
make them satisfied on their job.(leigh, 2012).

There are lots of problems associated with effective performance appraisal which
include untrained supervisors/mangers, lack of effective metrics, inconsistent training of
employees, unreliable reward systems. It is on this premises that the study seek to know the
effect of performance evaluation system on employee productivity.

1.3 OBJECTIVE OF THE STUDY

The general objective of the study was to find out performance appraisal system on employee
productivity. Objective of the study was to determine:

- The relationship between performance appraisal productivity;

- The impact of performance criteria in performance employee productivity.

1.4 REVIEW OF LITERATURE

Paul E. Levy is a Professor of Psychology at The University of Akron where he also

serves as Associate Department Chair and Chair of the I/O Psychology Program. He
publishes extensively in the top journals in the field such as Journal of Applied
Psychology, Organizational Behavior and Human Decision Processes, Personnel
Psychology, Journal of Management, and Journal of Personality and Social Psychology.
He is the author of a recent textbook on I/O Psychology, serves on multiple editorial
boards, and regularly consults to industry.
 Jane R. Williams is an Associate Professor of Psychology at Indiana University-
Purdue University Indianapolis. She received her Ph.D. in Industrial/Organizational
Psychology from the University of Akron in 1995. She has published her work in such
journals at Journal of Applied Psychology, Personnel Psychology, Organizational
Behavior and Human Decision Processes, and Journal of Organizational Behavior.
1.5 HYPOTHESIS
- there is no significant relationship between performance appraisals and employee
productivity.
- there is a significant relationship between performance appraisal and employee
productivity.
- there is significant relationship between performance appraisals criteria and
employee productivity.
- there is a significant relationship between performance appraisals criteria and
employee productivity.

1.6 PERIOD OF STUDY

The present study covers a period of six months i.e. from October to March during
the year 2019-2020.

1.7 METHODOLOGICAL DESIGN

This study is based on both primary and secondary data.

Primary Data
The primary data have been collected from the college staff in Sivakasi using
questionnaire.

Secondary Data
The secondary data have been collected from the secondary sources like books,
magazines, journals and websites.
1.8 SAMPLING DESIGN

There are four Arts and Science College in Sivakasi town. The researcher has
taken all the colleges namely, Ayya Nadar Janaki Ammal College, Standard Firework
Rajarathnam college, Sri Kaliswari College and Government College for Arts and
Science.

It is not possible for the researcher to study the entire population of the staffs
in Sivakasi. Therefore, the researcher has collected the data from 130 staffs in Sivakasi by
using stratified sampling techniques. The details are given below in table 1.1

Table 1.1

Sample Size

College name Staff numbers Sample Size

Ayya Nadar Janaki Ammal 180 60

College

Standard Fireworks 120 30

Rajarathnam College

Sri Kaliswari College 100 25

Government Arts and Science 80 15

College

TOTAL 480 130

1.9 STATISTICAL TOOLS

The following statistical tool have been used to analyze and interpret
the collected data of the present study

 Percentage
 Chi-square test
1.10 SCHEME OF CHAPTERISATION

Chapter I

First chapter deals with the introduction and design of the study. It consists of
statement f the problem, scope, objectives, methodological and sampling design.

Chapter II

Second chapter deals with the general theoretical aspects of impact of

performance appraisal on the productivity of employees in colleges of sivakasi.

Chapter III

The third chapter shows the analyze and interpretation of data.

Chapter IV

Fourth chapter propose to incorporate the summary of findings,

suggestions and conclusion.