FINAL PROJECT

“A STUDY OF PERFORAMNCE APPRAISAL IN HCL INFO

SYSTEM”
DMSR- G. S. College of Commerce & Economics, Nagpur

Affiliated to

Rashtrasant Tukadoji Maharaj Nagpur University

Nagpur

In partial fulfilment for the award of the degree of

Master of Business Administration

Submitted by

Vidhika Rahangdale

Under the Guidance of

Dr. Sonali Gadekar

Department of Management Sciences and Research,

G. S. College of Commerce & Economics, Nagpur
NAAC Re-Accredited “A” Grade Autonomous Institution

Academic Year 2021-2022

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 G.S. College Of Commerce & Economics, Nagpur

CERTIFICATE

This is to certify that Vidhika Rahangdale has submitted the project report titled “A

STUDY OF PERFROAMNCE APPRAISAL IN HCL INFO SYSTEM’’, towards

partial fulfillment of MASTER OF BUSINESS ADMINISTRATION degree

examination. This has not been submitted for any other examination and does not form

part of any other course undergone by the candidate.

It is further certified that she has ingeniously completed her project as prescribed by

DMSR - G. S. COLLEGE OF COMMERCE & ECONOMICS, NAGPUR

(NAAC Reaccredited “A” Grade Autonomous Institution) affiliated to

Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur

Dr. Sonali Gadekar Dr. Sonali Gadekar

(Project Guide) ( Co-Ordinator)

Place: Nagpur

Date:
 G.S. College Of Commerce & Economics,

Nagpur

DECLARATION

I here-by declare that the project with title “ A STUDY OF PERFROAMNCE

APPRAISAL IN HCL INFO SYSTEM’ as been completed by me in partial

fulfillment of MASTER OF BUSINESS ADMINISTRATION degree examination as

prescribed by DMSR - G. S. COLLEGE OF COMMERCE & ECONOMICS,

NAGPUR (NAAC Reaccredited “A” Grade Autonomous Institution) affiliated to

Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur and this has not been

submitted for any other examination and does not form the part of any other course

undertaken by me.

Place : Nagpur Vidhika Rahangdale

Date :

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 G. S. College Of Commerce & Economics, Nagpur

ACKNOWLEDGEMENT

With immense pride and sense of gratitude, I take this golden opportunity to express
my sincere regards to Dr. N.Y. Khandait, Principal, G.S. College of Commerce &
Economics, Nagpur.
I am extremely thankful to my Project Guide “Dr Sonali Gadekar” for her guideline
throughout the project. I tender my sincere regards to Co-Ordinator, Dr. Sonali
Gadekar for giving me guidance, suggestions and invaluable encouragement which
helped me in the completion of the project. I am thankful to Prof. Anand Kale Sir
for his continuous guidance.
I will fail in my duty if I do not thank the non-Teaching staff of the college for their
Co-operation.
I would like to thank all those who helped me in making this project complete and
successful. (Mention the names with designation)

Place: Nagpur Vidhika Rahangdale

 INDEX

Chapter No. Title Page NO.

Chapter 1: INTRODUCTION

INTRODUCTION

COMPANY PROFILE

VISION AND MISSION

Chapter 2: LITERATURE REVIEW

Chapter 3: PROBLEM DEFINITION

OBJECTIVE OF STUDY

HYPOTHESIS

RESEARCH METHODOLGY

RESEARCH DESIGN

Chapter 4 DATA ANALYSIS AND INTERPRETATION

Chapter 5: FINDINGS, SUGGESTIONS AND CONCLUSION

Chapter 6: BIBLIOGRAPHY AND ANNEXURE

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 INTRODUCTION

In almost every organization, every employee is subjected to periodic appraisal of his/her

performance. This is highly important if the organization’s human resource development objectives

are to be realized, if the organization wants to make best use of its human resource available and if

the organization wants to have a scientific and retinal compensation system.

An effective performance appraisal system brings rationality in management. If an organization

wants to maximize its effectiveness then the organization must have tool by which it can

discriminate between an effective employee and not so effective employee. Today, appraisal is not

something of a choice left to the wishes of the corporate bosses, nor it is a privilege to be enjoyed by

few businesses conglomerates.

Therefore, it is a must for every organization for its survival and growth. The appraisal practices are

in somewhere structured and formally sanctioned and in other instances they are an informal and

integral part of daily activities. Thus, across the human activities someway or other performance

appraisal is conducted in different ways and all of us, consciously or unconsciously evaluate our own

actions from time to time.

PERFORMANCE APPRAISAL

OBJECTIVE OF PERFORMANCE APPRAISAL

A good Performance Appraisal has following objectives: -

➢ Help employee overcome his weakness & improve ones his strengths & thus enable him

to improve his performance & that of the Department.

➢ Generate adequate feedback & guidelines form the repotting officers to the employee.

➢ Contribution to the growth & development of the employee through helping him in

realistic goal setting.

➢ Help in creating a desirable culture & traditions in the organization.

➢ Help identifying employees for the purpose of motivating, training & developing them.

➢ Generate significant, relevant, free & valid information about employees.

➢ Thus, a good Performance Appraisal & review system should primarily focus an

employee development.

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Performance appraisal...
• Measuring,

• Evaluating, and

• Influencing an employee’s job-related attributes, behaviors and outcomes.

Historically, performance appraisal was linked to material outcomes with the assumption that a cut

in pay, or a rise, should provide the required impetus for an employee to either improve or continue

to perform well. ...a structured appraisal system is more likely to be lawful, fair, defensible, valid

and reliable performance appraisal a structured and formal interaction between a subordinate and

his/her supervisor.

Let's begin our discussion of performance appraisal by defining the concept. Performance

appraisal is a formal system of measuring, evaluating, and influencing an employee’s job-related

attributes, behaviors and outcomes. The objective is to to determine how productive an employee is

and/or to determine if an employee’s productivity can be improved. As such, performance appraisals

serve an important purpose in managing people and meeting company goals.

The tendency to make judgments about oneself or about people one is working with, appears to be

both inevitable and universal. However, without a carefully structured system of appraisal and

evaluation, people will judge the performance of coworkers -- subordinates, superiors, and peers --

arbitrarily and informally. This tendency to judge, without a systematic procedure, has the potential

to create serious motivational, ethical and legal problems within the firm. On the other hand, a

structured appraisal system is more likely to be lawful, fair, defensible, valid and reliable.
What is the role of performance appraisal?

Performance appraisals telling subordinates how they are doing, and suggesting needed changes in

behaviors, attitudes, skills, or job knowledge. Effective appraisal systems provide both evaluation

and feedback the main aim of the evaluation is to identify performance gaps feedback is necessary

to inform employee about those performance gaps One of the functions of performance appraisals is

to ensure that people are accountable for their organizational

We have seen from previous discussions, that people are one of a company's most valuable assets.

While most assets depreciate over time, people, viewed as assets, may actually appreciate. One of

the manager's major responsibilities is to improve and update the knowledge and skills of employees

-- appreciation of assets. Performance appraisal plays a significant role as a tool and technique of

organizational development and growth. In essence, effective appraisal systems provide both

evaluation and feedback.

The main aim of the evaluation is to identify performance gaps -- when performance does

not meet the organizational standards -- whereas feedback is necessary to inform employee about

those performance gaps. From the employee's perspective, performance appraisal informs them

about what is required of them in order to do their jobs, it tells them how well they have achieved

those objectives and helps them take corrective action to improve their performance, and, finally, it

may reward them for meeting the required standards.

The firm, on the other hand, needs a performance appraisal system in order to establish

principles of managerial accountability. Clearly, where employees are given responsibilities and

duties, they need to be held accountable. One of the functions of performance appraisals is to ensure

that people are accountable for their organizational responsibilities.

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Perhaps the most significant benefit of performance appraisals is the opportunities they provide

supervisors and subordinates to have one-on-one discussions of important work issues. During

appraisals, subordinates and supervisors can focus on work activities and goals, identify and correct

existing problems, and encourage better future performance.

Performance Appraisal and Motivation

Motivational research has recognized the power of recognition as an incentive (see Maslow

and the Expectancy Theory of Motivation). Performance appraisals provide employees with

recognition for their work efforts. The appraisal system provides the supervisor with an opportunity

to indicate to employees that the organization is interested in their performance and development.

This recognition can have a positive motivational influence. on the individual's sense of worth,

commitment and HCL ongoing.

Performance Appraisal and Training and Development

Performance appraisals identify performance gaps. As such, they provide an excellent

opportunity for a supervisor and subordinate to recognize and agree upon individual training and

development needs. Performance appraisal discussion may identify the presence or absence of work

skills. Further, the need for training can be made more relevant if attaining the requisite job skills is

clearly linked to performance outcomes. Consolidated appraisal data can also help form a picture of

the overall organizational training requirements

Performance Appraisal and Recruitment

Recruitment and selection procedures need to be evaluated. Appraisal data can be used to monitor

the success of a firm's recruitment and selection practices. From this data, the firm can determine how

well employees who were hired in the past are performing.

 Performance Appraisal and Employee Evaluation

Employee evaluation is a major objective of performance appraisal. Given the major

functions of management -- planning, organizing, leading and controlling it is clear that evaluations

(controlling) need to be done. At its most basic level, performance appraisal is the process of

examining and evaluating the performance of employees. However, the need to evaluate is also a

source of tension, as evaluative and developmental priorities appear to clash. Some management

experts have argued that appraisal cannot serve the needs of evaluation and development at the same

time.

Performance Appraisal and Total Quality Management (TQM)

With the advent of TQM (Total Quality Management) and the extensive use of teams,

traditional performance appraisal systems have come under some criticism. For example, rather than

motivating employees, conflict may be created when appraisals are tied to merit pay and when that

merit pay is based on a forced ranking.

W. Edwards Deming, the founder of total quality management (TQM) has long been associated with

the view that performance appraisals ought to be eliminated. Many TQM proponents claim that

performance appraisals are harmful. However, there is no doubt that, without safeguards such as

appropriate design, adequate administrative support, comprehensive job analysis / description and

training for appraisers, conventional performance appraisal processes risk becoming just another of

the many bureaucratic rituals supervisors and subordinates must endure.

Performance Appraisal Summary

11 | P a g e
 Performance appraisal, while enabling a manager to identify the training needs of employees,

and evolving training plan for them, also, serves to meet other objectives. Performance appraisal

satisfies the psychological needs individuals have to know how they are performing their job and

increases

Employees’ job satisfaction and morale by letting them know that the manager is interested in their

progress and development. Systematic performance appraisal also provides the firm and the

employee a careful evaluation, rather than a snap judgment of an employee's performance. Many

firms use performance appraisals to plan placements and transfers and to provide input into decisions

regarding salary increases, promotions, and transfers. Finally, their superiors may use performance

appraisals as a basis for the coaching and counseling of individual employees by their superiors.

Performance appraisals provide a means for informing employees of the quality of their work

and identifying areas of performance that may need improvement assessing the staff member's

adequacy to perform tasks help supervisors maintain control of the work and make the most effective

use of their staff resources a supportable basis for making personnel decisions

To summarize the uses of performance appraisal:

• Performance improvement

• Compensation

• Placement

• Training & development needs assessment

• Career planning

• Job design error detection

• Detection of external factors influencing job performance

 o Performance deficiencies may be due to family or other pressures before looking at

specifics about performance appraisal programs, it might be useful to examine some

deficiencies of existing programs

Performance Measures

• OBSERVATION

DIRECT INDIRECT

•
❖ Rate sees the actual ❖ Rate evaluates substitutes
• performance (constructs) for actual
performance
o Less accurate

Comparative Evaluation Methods

• Ranking Methods

• Forced Distributions

• Point Allocation Method

• Paired Comparison

Rating Scales Summary

As we indicated above, formal appraisal systems are necessary in order to introduce

objectivity into the evaluation process. Rating scales provide appraisers a fairly high degree of

structure. Using rating scales, employee traits and characteristics are rated on a scale that usually has

several points ranging from "poor" to "excellent". For example, characteristics assessed might

13 | P a g e
include cooperation, communications ability, initiative, punctuality and technical competence. It is,

of course, important that the traits being evaluated be job-related. In designing the scale, the human

resource specialist must make reference to the appropriate job descriptions. Use of inappropriate

traits could result in legal action on the grounds of discrimination.

Using a rating scale, the rater provides a subjective evaluation of an employee's performance along

a scale from high to low. Since the method provides a numerical value for each dimension or trait,

an overall average can be calculated for each employee. The rating scale is inexpensive and easy to

administer.

Advantages of Rating Scales

The greatest advantage of rating scales is that they are structured and standardized. Thus,

ratings can be easily compared and contrasted. Using rating scales, each employee is rated according

to the same basic appraisal process. The process encourages equality in treatment for all employees.

Further, rating scales are easy to construct, to use and to understand.

Disadvantages of Rating Scales

• Rater biases

• Specific performance criteria may be omitted to make form applicable to a variety of jobs in

the organization

• Descriptive evaluations are subject to individual interpretation

Even though rating scales ought to be constructed with reference to the relevant job descriptions,

questions must be asked about whether or not the selected traits are relevant to the jobs of all the

appraises? Often, when efforts are made to standardize an appraisal form across the entire

organization, certain traits that are included will have a greater relevance for some jobs than others.
For example, the trait "initiative" might not be very important in a job that is tightly defined and

rigidly structured. In such cases, a low appraisal rating for initiative may not mean that an employee

lacks initiative. Rather, it may reflect that fact that an employee has few opportunities to use and

display that particular trait.

In efforts to standardize the rating instrument, it is possible that factors that an employee's

performance may depend on have not been included in the selected list of relevant traits. Thus, some

employees may end up with ratings that do not fairly reflect their effort or value to the organization.

Selective perception is the human tendency. Although rating scales are designed to lend

objectivity and empiricism to the evaluation process, it is difficult to eliminate problems of selective

perception (biases and rater inconsistencies). Similarly, the reliability of rating instruments may be

questioned if different appraisers would interpret the rating traits (such as, "punctuality") differently.

What exactly does "HCL ow average skill" mean? Different appraisers could very likely interpret

this "score" differently. Some errors are errors of perception. Other errors may in fact be deliberate.

A very common rating error is that of central tendency. An appraiser, wary of confrontations or

repercussions, may be tempted to give too many passive, middle-of-the-road ratings. Thus the spread

of ratings for all employees tends to be clumped around the middle of the scale.

Performance Appraisal Summary

Performance appraisal, while enabling a manager to identify the training needs of employees,

and evolving training plan for them, also, serves to meet other objectives. Performance appraisal

satisfies the psychological needs individuals have to know how they are performing their job and

increases

15 | P a g e
Employees’ job satisfaction and morale by letting them know that the manager is interested in their

progress and development. Systematic performance appraisal also provides the firm and the

employee a careful evaluation, rather than a snap judgment of an employee's performance. Many

firms use performance appraisals to plan placements and transfers and to provide input into decisions

regarding salary increases, promotions, and transfers. Finally, their superiors may use performance

appraisals as a basis for the coaching and counseling of individual employees by their superiors.

Performance appraisals provide a means for informing employees of the quality of their work

and identifying areas of performance that may need improvement assessing the staff member's

adequacy to perform tasks help supervisors maintain control of the work and make the most effective

use of their staff resources a supportable basis for making personnel decision

To summarize the uses of performance appraisal:

• Performance improvement

• Compensation

• Placement

• Training & development needs assessment

• Career planning

• Job design error detection

• Detection of external factors influencing job performance

o Performance deficiencies may be due to family or other pressures before looking at

specifics about performance appraisal programs, it might be useful to examine some

deficiencies of existing program

❖ Legal Sanction
 ❖ Training to appraisers

❖ Open communication

Reasons for Performance Appraisal Failures

Where performance appraisal fails to work as well as it should, lack of support from the top

levels of management is often cited as a major contributing reason. Opposition may be based on

political motives, or more simply, on ignorance or HCL in the effectiveness of the appraisal process.

It is crucial that top management HCL in the value of appraisal and expresses their visible

commitment to it. Top managers are powerful role models for other managers and employees. Those

attempting to introduce performance appraisal, or even to reform an existing system, must be acutely

aware of the importance of political issues and symbolism in the success of such projects.

Fear of Failure

There is a stubborn suspicion among many appraisers that a poor appraisal result tends to reflect

badly upon them also, since they are usually the employee's supervisor. Many appraisers have a

vested interest in making their subordinates "look good" on paper. When this problem exists (and it

can be found in many organizations), it may point to a problem in the organization culture. The cause

may be a culture that is intolerant of failure. In other words, appraisers may fear the possibility of

repercussions - both for themselves and the appraisee.

Employee Participation

Employees should participate with their supervisors in the creation of their own performance goals

and development plans. Mutual agreement is a key to success. A plan wherein the employee feels

17 | P a g e
some degree of ownership is more likely to be accepted than one that is imposed. This does not mean

that employees do not desire guidance from their supervisor; indeed they very much do.

Performance Management

One of the most common mistakes in the practice of performance appraisal is to perceive appraisal

as an isolated event rather than an ongoing process. Employees generally require more feedback,

and more frequently, than can be provided in an annual appraisal. While it may not be necessary to

conduct full appraisal sessions more than once or twice a year, performance management should be

viewed as an ongoing process.

Frequent mini-appraisals and feedback sessions will help ensure that employees receive the

ongoing guidance, support and encouragement they need. Of course many supervisors complain they

don't have the time to provide this sort of ongoing feedback. This is hardly likely. What supervisors

really mean when they say this is that the supervision and development of subordinates is not as high

a priority as certain other tasks.

In this case, the organization may need to review the priorities and values that it has instilled

in its supervisory ranks. After all, supervisors who haven't got time to monitor and facilitate the

performance of their subordinates are like chefs who haven't got time to cook, dentists who are too

busy to look at teeth. It just doesn't make sense.

Performance Appraisal Bias Effects

Garris & Mitchell have reported a disruptive bias in performance appraisal known as the

Matthew Effect. It is named after the Matthew of biblical fame who wrote, "To him who has shall

be given, and he shall have abundance: but from him who does not have, even that which he has

shall be taken away." In performance appraisal, the Matthew Effect is said to occur where employees

tend to keep receiving the same appraisal results, year in and year out. That is, their appraisal results
tend to become self-fulfilling: if they have done well, they will continue to do well; if they have done

poorly, they will continue to do poorly. He Matthew Effect suggests that no matter how hard an

employee strives, there past appraisal records will prejudice their future attempts to improve.

On the other hand, out groupers don't do as well. They appear to be permanently out of favor

and are likely to bear the brunt of supervisory distrust and criticism. The effect is therefore similar

to the horns and halo effect; supervisors tend to judge employees as either good or bad, and then

seek evidence that supports that opinion. It was found that when an in grouper did poorly on a task,

supervisors tended to overlook the failure or attribute to causes such as bad luck or bad timing; when

they did well, their success was attributed to effort and ability.

Frustration

The extent of this frustration was explored by Ga bris & Mitchell. They studied an

organization with a quarterly performance appraisal system. The workforce was divided into two

groups: those who had been given high appraisal results consistently, and those who had low results

consistently. When the groups were asked if the appraisal system was fair and equitable, 63 per cent

of the high performers agreed, compared to only 5 per cent of the lower performers. The groups were

asked if their supervisors listened to them. Of the high performers, 69 per cent said yes, while among

the low performers, 95 per cent said no.

Finally, when asked if their supervisors were supportive, nearly half of the high performers

agreed that they were, while none (nil, zilch, zero!) of the low performers agreed. Of course, not

everyone who gets a poor appraisal result is a victim of supervisory bias. Nor are all supervisors

prone to making the same degree of in-group and out-group distinction. The effects discussed here

19 | P a g e
are tendencies, not immutable effects. But to some extent, it appears that certain employees may be

unfairly advantaged, while others are disadvantaged, by bias effects in the judgments of supervisors.

Awareness of Training

The first line of defense lies in raising awareness of the problem. Supervisors need to be

informed of the types of subtle bias that can interfere with their performance as appraisers. They

need to understand that the in-group / out-group bias, for instance, reduces the morale and motivation

of their subordinates

Developing Poor Performers

Incentives, financial or non-financial, may offered to encourage supervisors to make special

efforts to help poor performers improve. Supervisory appraisals, for example, might stress the

importance of working with poor performers to upgrade their performance. The possibilities are

extensive.

Retention of Records

Performance appraisal results should not become a permanent part of an employee's

personnel record. Employees should not feel that their employment history has been forever marred

because of a poor appraisal result. If appraisal records are to be retained for long periods of time,

they should be securely archived and access to them restricted. New supervisors should not be

permitted to review records that are older than a few years.

Counseling, Transfer, Termination

There is always the possibility that an employee who receives poor appraisal results is in fact

a chronic poor performer of course, no employer is bound to tolerate poor performance forever.
Consistently poor appraisal results will indicate a need for counseling, transfer or termination. The

exact remedy will depend on the circumstances.

Common Appraisal System Faults

Some of the most frequent faults employees find with performance appraisal systems are:

1. The reported evaluations tend to be non-specific (generalities cannot help an employee make

improvement)

2. The comments in the appraisal document are inconsistent with actual performance (at least as

perceived by the employees) -- the observations lack empirical evidence

3. The meetings are handled poorly and dominated by superiors who tend to use one-way comm

Little or no constructive suggestions for improvement are made during the interview

4. Consistent with the observation that superiors frequently engage in one-way communication, the

individual employee has little or no input

5. The process is mechanical and contributes little to either the betterment of the organization or the

employee

6. The process is mechanical and contributes little to either the betterment of the organization or the

employee

Given the faults listed above, the process engenders hostility in the employees

Improving Appraisal Systems

The following suggestions might lead to a more rational performance appraisal process:

• Ensure that all employees are subject to evaluation (from the president/manager down)

21 | P a g e
 o People in the organization will feel more commitment to the performance evaluation

process if the supervisors who give appraisals will also be judged

• The appraisals ought to be spread out throughout the year

• Supervisors faced with a pile of appraisals at any one period of time will feel overwhelmed

and will likely not do a good job because they are rushed

• Legal considerations and confidentiality issues must be considered

o Policies with respect to where the appraisals will be kept and who has access to them

must be implemented

• Self-evaluation should be encouraged as part of the process

o This procedure may invite disagreement

o Most people rate themselves the same or lower than their manager will

o Another benefit of self-appraisal is that managers frequently don't know all that's required

to get the job done -- the manager thus learns more about the organization by reading the

employees' self-evaluation

• Have peers conduct reciprocal reviews

• Have subordinates evaluate their superiors

• Establish a clear relationship between salary increments and performance appraisals

• Establish a policy to determine how much of the review will be based on personal observation

and interaction, and how much will rely on input received from others -- make sure all

employees are aware of this policy

• Publicize which performance appraisal methodology you intend to use:

 o Management by objectives

o Essays

o Graphic rating scales

o Weighted checklists

o Behavioral anchored ratings

o Forced choices

o Critical incidents

o Rankings

o Paired comparisons

360-degree Performance Appraisal: Evaluating Employees from All Angles

Traditional performance appraisals, as discussed above, can be both subjective and simplistic.

At times, they can also be deemed to be "political". In an attempt to improve this methodology, some

companies have turned to 360-degree appraisals. 360 appraisals pool feedback from a department's

internal and external customers to ensure a broader, more accurate perspective of an employee's

performance. 360-degree performance appraisal is an attempt to answer the question: "How can a

supervisor evaluate an employee he or she sees only a few hours each week?"

Using internal and external clients: -

360-degree performance appraisals offer an alternative by which organizations may gain

more useful performance information about employees. Because all clients/customers an employee

comes into contact with can conceivably have input into the performance appraisal, this methodology

23 | P a g e
can also make them more accountable to their customers. Using a courtroom metaphor, one could

say that, rather than having a single person play judge, a 360-degree appraisal acts more like a jury.

People who actually deal with the employee each day have an opportunity to create a pool of

information from which the appraisal is written. Internal clients may include supervisors,

subordinates, co-workers, and representatives from other departments. External customers may

include clients, suppliers, consultants and customers.

Perceived fairness: - Given the use of a wide variety of sources for information in the

360-appraisal process, this method provides a broader view of the employee's performance.

Frequently, the employee on whom the appraisal is being done (the ratee) will feel that the process

is fairer.

Very often, an employee's peers know their behaviors best. Consequently, employees cannot

hide as easily in 360-degree appraisals.

Employee development

360-degree appraisal enables an employee to compare his or her own perceptions of their

work performance with the perception of others. As such, the method facilitates employee self-

development. Feedback from one's peers is more likely to lead to changed behaviors.

The raters:

One issue employer must solve in implementing a 360-degree appraisal program is determining how

many raters should be involved. Next, the organization must decide who should do the rating.

Generally speaking, less than five raters limit the perspective while more than ten raters is likely to

make the appraisal system complex and time consuming. A firm would be well advised to develop

a workable definition of what constitutes a peer, an internal customer, an external customer, a

supervisor, etc. For example, to be useful, the customer ought to be one who has significant

interactions with the ratee.

Some organizations permit the ratee to develop a list of key internal and external customers

that he or she interacts with. The ratee then recommends five to ten of these individuals to serve as

raters. In this process, the supervisor still retains the ultimate responsibility for the appraisal and

therefore ensures that appropriate raters are selected. The ratee is thus prevented from stacking the

deck with supportive customers. Another option has the raters selected at random from the ratee's

team by a computer-generated system. Those selected are then notified by E-mail to participate in

the appraisal.

Appraisal Methods

In a landmark study, Lecher & Teel (1977) found that the three most common appraisal methods

in general use are rating scales (56%), essay methods (25%) and results- oriented or MBO methods

(13%). For a description of each, follow the button links on the left. Certain techniques in

performance appraisal have been thoroughly investigated, and some have been found to yield better

results.

Constructive Intention It is very important that employees recognize that negative

appraisal feedback is provided with a constructive intention, i.e., to help them overcome present

difficulties and to improve their future performance. Employees will be less anxious about criticism,

and more likely to find it useful, when the HCL eve that the appraiser's intentions are helpful and

constructive. In contrast, other studies have reported that "destructive criticism" - which is vague,

ill-informed, unfair or harshly presented - will lead to problems such as anger, resentment, tension

25 | P a g e
and workplace conflict, as well as increased resistance to improvement, denial of problems, and

poorer performance.
 COMPANY PROFILE

Shiv Nadar

Chairman and CEO

HCL Technologies Ltd.

HCL Infosystems Ltd is one of the pioneers in the Indian IT market, with its origins in 1976. For

over quarter of a century, HCL have developed and implemented solutions for multiple market

27 | P a g e
segments, across a range of technologies in India. HCL have been in the forefront in introducing new

technologies and solutions.

HCL Infosystems (HCLI) draws it's strength from 29 years of experience in handling the ever

changing IT scenario, strong customer relationships, ability to provide the cutting edge technology

at best-value-for-money and on top of it, an excellent service & support infrastructure.

Today HCL is country's premier information enabling company. It offers one-stop-shop convenience

to its diverse customers having an equally diverse set of requirements. Be it a large multi-location

enterprise, or a small/medium enterprise, or a small office or a home, HCLI has a product range,

sales & support capability to service the needs of the customer.

Last 29 years apart from knowledge & experience have also given us continuity in relationship with

the customers, thereby increasing the customer confidence in us.

Their strengths can be summarized as:

• Ability to understand customer's business and offer right technology

• Long standing relationship with customers

• Pan India support & service infrastructure

• Best-vale-for-money offerings

• Technology Leadership

HCL Infosystems is known to be the harbinger of technology in the country. Right from their

inception HCL have attempted to pioneer the technology introductions in the country either through

their R&D or through partnerships with the world technology leaders.

Using their own R&D, HCL have

• Created their own UNIX & RDBMS capability (in 80s)

• Developed firewalls for enterprise & personal system security

 • Launched their own range of enterprise storage products

• Launched their own range of networking products

HCL strive to understand the technology from the view of supporting it post installation as well. This

is one of the key ingredients that go into their strategic advantage.

HCL Infosystems has to its claim several technology pioneering initiatives. Some of them are:

• Country's first Desktop PC - Busy Bee in 1985

• Country's first branded home PC - Beanstalk in 1995

• Country's first Pentium 4 based PC at sub 40k price point

Vision Statement

• "Together we create the enterprises of tomorrow"

Mission Statement

• "To provide world-class information technology solutions and services to enable HCL’s

customers to serve their customers better"

Quality Policy

• "We deliver defect-free products, services and solutions to meet the requirements of HCL’s

external and internal customers, the first time, every time"

29 | P a g e
HCL’s Objectives

Management Objectives

To fuel initiative and foster activity by allowing individuals freedom of action and innovation in

attaining defined objectives.

People Objectives

To help people in HCL Infosystems Ltd. share in the company's successes, which they make

possible; to provide job security based on their performance; to recognize their individual

achievements; and help them gain a sense of satisfaction and accomplishment from their work.

Core Values

• We shall uphold the dignity of the individual

• We shall honor all commitments

• We shall be committed to Quality, Innovation and Growth in every endeavor

• We shall be responsible corporate citizens

Philosophy of Quality

"We deliver defect-free products, services and solutions to meet the requirements of HCL’s external

and internal customers, the first time, every time."To exist as a market leader in a globally
competitive marketplace, organizations need to adopt and implement a continuous improvement-

based quality policy.

One of the key elements to HCL's success is its never-ending pursuit of superior quality in all its

endeavors.

HCL Infosystems believes in the Total Quality Management philosophy as a means for continuous

improvement, total employee participation in quality improvement and customer satisfaction. Its

concept of quality addresses people, processes and products.

Over the last 20 years, we have adapted to newer and better-Quality standards that helped us

effectively tie Quality with Business Goals, leading to customer and employee satisfaction.

Quality at HCL Infosystems Ltd.

The history of structured quality implementation in HCL Infosystems began in the late 1980s with

the focus on improving quality of its products by using basis QC tools and Failure Reporting and

Corrective Active Systems (FRACAS). We also employed concurrent engineering practices

including design reviews, and rigorous reliability tests to uncover latent design defects.

In the early 90s, the focus was not merely on the quality of products but also the process quality

systems. HCL’s manufacturing unit at NOIDA was certified initially to ISO 9002:1994 by BVQI in

1994 and later on to ISO 9001:1994 in 1997. As of now, all HCL’s manufacturing units are certified

by BVQI as per ISO 9001:2000

In early 1995, a major quality initiative was launched across the company based on Philip B. Crosby's

methodology of QIPM (Quality Improvement Process Management). This model was selected to

31 | P a g e
because it considered the need and commitment by an organization to improve but more importantly,

the individual's need towards better quality in his personal life.

The tryst for continuous quality improvement is never-ending in HCL Infosystems. We always strive

to maintain high quality standards, which help us fulfill HCL’s mission to provide world-class

information technology solutions and services, to enable HCL’s customers to serve their customers

better.

HCL – A Snapshot

The HCL Enterprise comprises two companies listed in India, HCL Technologies and HCL

Infosystems. HCL Technologies is the IT and BPO services arm focused on global markets, while

HCL Infosystems is the IT hardware and system integration arm focused on the Indian market.

Together, these entities have uniquely positioned HCL as an enterprise with service offerings

spanning the IT Services and Product spectrum.

The range of offerings span Product Engineering and Technology Development, Application

Services, BPO Services, Infrastructure Services, IT Hardware, Systems Integration, and Distribution

of Technology and Telecom products in India.

HCL Infosystems Ltd. (HCL Infosystems) has now become India’s one of big technology integration

company. Over the years, HCL Infosystems has positioned its business operations to fulfill its vision

statement ‘Together we create enterprise of tomorrow’. The overarching theme for the company’s

swift progression into the software and service arena, in India and globally, is evolving.

Key Business Associates of HCL

33 | P a g e
6 S Offerings for Business Empowerment of HCL Infosystems

Need

In the emerging net economy, IT infrastructure Plays the role of a Powerful business enabler to

improve your business processes, to help you focus on your goals and strategies and more

importantly, to help you serve your customers better. IT Infrastructure demands constant change

latest technology, reliable operations and high availability. Leaders like you, in the process of

selecting the best of breed in technology, require integrating different solutions from various

vendors. Thus, a situation where you need a strong reliable and trusted partner committed to deliver

beyond just services.

Advantage

Staying competitive in today’s dynamic business environment means finding new ways to reduce

costs while maximizing the value of your technology and personal resources. More than ever,

yourability to "do more with less" determines how successful your organization will be. That’s why
HCL Infosystems helps you achieve. By channeling our in-depth expertise gained from over 28 years

of

IT Domain experience. We provide a full bandwidth of services specifically designed to meet your

complete IT needs.

The 6 S

Solutions

The one stop shop solution center for all your IT needs, customized to meet and scale with your

unique Business Needs.

Services

A range of value-added services in IT infrastructure operations and management.

Support

Pan-India footprint of support and logistics locations. Over 260 Direct service support locations.

Technically sound workforce of over 1700 certified professionals.

Standards

World Class Quality standards maintained for PPP (People, Processes & Performance). Alliance

with global technology leaders.

35 | P a g e
Savings

We help you find new ways to reduce costs & "do more with less" by maximizing the value of your

technology and personal resources, thereby reducing your total cost of ownership (TCO).

Satisfaction

Complete Satisfaction for the customers through the HCL 6S offering that enables one to maximize

system uptime through rapid response and resolution services, thereby optimizing your IT

investments.

HCL Production Facility

 MARKETING STRATEGY

Marketing Strategy can be define as a business’s approach to marketing its products or services

expresses in broad terms, which forms the basis for developing a marketing plan”. In other words,

Marketing Strategy is nothing but a combination of decision bearing on various aspects of marketing

mix elements. There are basically five P’s of marketing which play a vital role in marketing of a

product and they are Product, Price, Place, Promotion and Packaging concentrated on all aspects

that’s the reason why HCL has a very good and efficient market not only in Ghaziabad but also in

other regions of India.

Product Planning

HCL take good and effective decision on the faith of their existing product along with their future

products. This is a continuous process, which is taken into consideration by HCL’s top management.

HCL have an R&D Department, which focuses on to the continuous innovation in order to make

HCL the best in today’s cutthroat competition

Management Information System (MIS)

HCL takes into consideration every bit of information and have a very strong MIS. In order to have

the best knowledge about the market they study the market and to be the best among the competitors

they study all the market players thoroughly like wise they collect the information regarding product,

price, promotional strategy, etc. of the competitor.

37 | P a g e
Market Segmentation

Market Segmentation means dividing the market into distinct group of buyers keeping in mind

demographics, psychographics and behavioral differences among the buyers. Who might require

different products or marketing mixes?

A market segment consists of a group of people who share similar set of wants. A segment is partly

a fiction, in that not everyone wants exactly the same thing.

HCL has classified people into the following segments as per their living standards:

• Lower Middle Class

• Middle Class

• Upper Middle Class

• Higher Class

Pricing Policies

India a country where the price of a product can define its faith in the market, hence we can say that

India is a very price sensitive market.

Price refers to the value of products attributes. Expressed in monetary terms price is the value, which

a customer pays to adhere or to avail a service or utility or a product

At HCL, pricing policy decisions are taken by the top management after following the prices of the

components and prices quoted by the competitors. After this a parallel pricing policy is developed in

which:

Bundles are created and products are marketed accordingly in every region.

Profit margins are kept into consideration, etc.

HCL gives 6 to 8 percent margin to their Channel Partners or Demo Centers, and company gets X%

profit in return.

HCL’s main objective is service rather than profit. No doubt there is profit but pricing policy is just

to meet minimum margin to have a competitive edge over the assembled PCs market.

HCL believes in “wealth maximization rather than profit maximization”.

HOME PCS

HCL Beanstalk

HCL recommends Windows® XP Professional

The all-new Beanstalk Series, where performance is rivaled only with elegance of design.

Customer gets superior technology and great value for money all fused into one. It comes

with the super-speed Intel® processor, plus SD RAM and Ultra ATA Hard Disk that gives

it incredible speed.

What's more, it is upgrade friendly and so virtually future-proof. Manufactured at HCL Infosystems'

state-of-the-art ISO 9001 certified plant, it is designed to outperform every other Home Computer

customer have ever seen or heard about. And with more than 250 Support providers across the

country, its widespread network ensures excellence in Customer Care. So go ahead and enjoy the

wonder that is HCL Beanstalk, and watch, it will amaze customer for years to come.

39 | P a g e
It is faster than the fastest home computer. The HCL Beanstalk comes equipped with the lightning-

fast Intel® Pentium® 4 processor which means customer can now get mind blowing multimedia

performance from customers computer. With its high-performance processor, it brings customer the

Internet like no other computer can. So get ready to experience 3D graphics, virtual reality and

realistic audio-video, like never before.

The HCL Beanstalk with Intel® Pentium® 4 processor, the center of customers digital world, is

designed to meet not just customers today's computing requirements, but also the needs of customers

future. So, bring home the HCL Beanstalk today and stay ahead of the rest of the world.

HCL Eze bee

HCL recommends Windows® XP Professional The HCL Eze bee is the complete All-in-one PC

brought to you by India's No. 1 IT Brand, HCL. With amazing performance and prices lower than

other assembled PCs, the HCL Eze bee is the most affordable Quality PC.

HCL recommends Windows® XP Professional

HCL Eze bee 4781 Celeron D 310

HCL Eze bee 8731 Sempron 2500+

HCL Eze bee 8731 Athlon64 3000+

 HCL Eze bee 4781 P4P 506

HCL Eze bee 4781 P4P 524

HCL Eze bee 4951 P4P 630

HCL Laptops

HCL recommends Windows® XP Professional

HCL introduces Laptops with unmatched mobile power. Designed to provide superior performance,

flexible connectivity and high mobility, these notebooks offer a new level of freedom and

functionality to bring you the ultimate in personal productivity.

41 | P a g e
 LITERATURE REVIEW

Performance appraisal: A process focus.

Citation

Ulgen, D. R., & Feldman, J. M. (1983). Performance appraisal: A process focus. Research in

Organizational Behaviour, 5, 141–197.

Abstract

The performance appraisal process is construed as a function of 3 interacting systems:

organizational context, the appraiser's information processing system, and the behavioural system

of the appraisee. It is argued that aspects of each system constrain the ability of the appraisal

process to produce accurate, unbiased, and reliable assessment of individual behaviour and

performance. The following characteristics of the appraisal process are discussed: (1) observation,

reward opportunities, and systemic issues such as function and expectations within the context of

the organization; (2) the appraiser's automatic attention processes, categorization and memory, and

information search and recall; and (3) appraisees' automatic and controlled modes of behaviour.

Recommendations for improving the appraisal process are presented. (9 p ref) (PsycINFO

Database Record (c) 2016 APA, all rights reserved)

 International Research Journal of Modernization in Engineering Technology

and Science

(Peer Reviewed Open Access, Fully Refereed International Journal) Volume:04/

Issue:03/March-2022

Impact Factor- 6.752

www.irjmets.com www.irjmets.com

A REVIEW OF LITERATURE ON THE PERFORMANCE APPRAISAL OF THE

EMPLOYEES

Balla Usha Sri*1

Research Scholar, Sanskrit University, Mathura, Uttar Pradesh, India.

ABSTRACT

Human resources are the most vital part of any organisation. The success of the organisation

obliviously depends on the performance of its employees. Employee’s performance hence should

be frequently monitored and feedback should be given. Performance appraisal is frequent review

of the performance of the employees in their job and their contribution to the organisation. These

appraisals will generally be used to judge the employees contribution to the production of the

company and in their promotions, rating and rewards. It also helps the employees to work on the

feedback given to them during these appraisals. Performance appraisal is one of the HRD

mechanisms used by HR department.

Keywords: Performance Appraisal, Feedback, HRD Mechanisms.

43 | P a g e
 I. INTRODUCTION

Changing trends in markets and emerging of the new firms demands and efficient employees in

an organisation. As human resources the most important role in any organisation, they should be

monitored and kept in high spirits. Performance appraisal is an old concept. In fact, it began in

China in the Weedy Dynasty (AD 261 – 265) where an imperial rate appraised the performance

of the members of office family. (Smriti) The Performance appraisal helps the management to

assess the strengths and weakness of the employees. It is a tool for measuring their performance

in the current period and also their future potential. It helps the management to easily identify the

under performers. Based on the Performance appraisal proper feedback should be given which

helps the employees to improve themselves. This a vast area and have huge literature reviews.

Many researchers have given contribution to this field. The concept of HRD was first presented

by Leonard Nadler in 1969 at a conference in the United States. "He defined HRDs as learning

experiences that are organized, over a specific period, and designed to provide the potential for

behaviour change." (Human Resource Development) According to Ivancevich and Gluck,

“Human resource management is the function performed in organizations’ that facilitate the most

effective use of people (employees) to achieve organizational and individual goals”. (Narang)

Edwin B. Filippo defines Performance Appraisal as “a systematic, periodic and so far, as humanly

possible, an impartial rating of an employee’s excellence in matters pertaining to his present job

and his potentialities for a better job.” (Smriti)

The human resource management mechanism is the integration of human resources through the

elements of the human resource management system to promote the full effect and best state of

human resources. Various HRD mechanisms were identified as variables including performance

appraisal and reward systems, feedback and advice, potential assessment and career development,

employee happiness, and quality of life, organizational development and training and
development. Employees also have chance to ask questions to their managers and may share their

feedback. As a part of performance review, they may also have a chance of self-evaluation.

Feedback and appraisal are two different concepts. Feedback usually is verbal and is ongoing

process. It provides information. Whereas, Appraisal is a judgment, at a regular interval and is

mostly written format. This is linked to the pay, rewards, promotion etc.

II. LITERATURE REVIEW

The history of performance appraisal ways back to the early 20th century and can be traced to

Taylor's pioneering Time and Motion studies. Though a formal appraisal programme was

introduced by New York City Civil Services in 1883 before WW1, it is believed to be started for

the first-time during WW1. Then US army chief Walter Dill Scott, kept man-to-man rating in

military establishment. According to C. Heysel (1973) “performance appraisal is the process of

evaluating the performance and qualifications of the employees in terms of the requirements of

the job for which they are employed. For the purpose of administration, including selection for

promotions, placement, providing financial rewards and other actions which necessitate

differential treatment amongst the members of a group as distinguished from actions affecting all

members equally”. In the views of Winston Oberg (1972), “Common descriptions include

performance appraisal, merit rating, behavioural assessment, employee evaluation, personnel

review, progress report, staff assessment, service rating and fitness report.” (Albanians) As per

A. Monapo and M. S. Saadian Douglas Mc Gregor (1957)– Formal appraisal plans are designed

in such a manner that they will be meeting one need of the organization and two of the individuals.

1. Systematic judgments for supporting an increase in salary, transfers, demotions or terminations.

45 | P a g e
2. Means of informing the subordinates about their performance, and suggesting the required

changes in their skills, attitudes, behaviour, or job knowledge. Clear information will be given

about their position.

3. For further training, coaching and counselling these appraisals are used. (Abanikanta)

Armstrong (2006)- “it is a systematic process for improving organizational performance by

developing the performance of individuals and teams Further he also added on that performance

appraisal allows the supervisor to grab the full potential of the employees through capacity

development. Performance appraisal reveals career-growth plans; helps in identifying the training

needs and helps in bringing employee goals and organizational goals together. (Armstrong, 2006)

In an organization, the supervisors of any organisation have a major role in transforming the

behaviour of the employees which may improve it or decrease it. As per the equity theory, a

feeling of uneven treatment decreases the performance and commitment among the workers.

Hence fair performance appraisals should be conducted with utmost care (Folk et al., 1985) Anup

Bhurtel and Eka Raj Adhikar conducted a study with 14 supervisors of the Council for Technical

Education and Vocational Training (CTEVT) of Nepal to investigate the perception of

supervisors on performance appraisal in relation to employee development adopting a qualitative

design The results of the study implied that supervisors interpreted the existing appraisal system

in a less effective manner, and it was mostly used for promotion criteria. The appraisal could not

be conducted on the non-permanent employees and the results of the permanent employees were

also kept confidential. Since they failed to discuss the results, they were not able to set the goals

for further development. The study suggested for a comprehensive performance appraisal system

which could include the developmental plans for the employees. (A .Burel &EK .Adhikari, 2016)

Paradise Bank is a nationalized bank in India. The employees are highly satisfied as they feel that

the management is fair in terms of compensation. The Chief HR manager at all times made it a
point to see that the appraisal system being followed gained the confidence and support of the

employees. Hence a feedback session always followed post the appraisals. (Case let 1) Ashima

Aggarwal, Gaur Sundar Mitra Thakur (2013) conducted a review on the methods of performance

appraisal. After the research, the authors came to the conclusion that determining whether one

methodology is better than another is challenging because it relies on the nature and size of the

organisation. Every methodology has its own pros and cons. (Aggarwal Ashima &Mitra Thakur

Gaur., 2013) Employees mostly dislike performance appraisal because they feel that managers

do not always rate them on objective criteria. This is called as “Rate bias” by the experts. Another

factor confirmed by previous researchers is that mood of the manger has an influence on the

ratings of the performance appraisals. When managers do not follow stated policies and

procedures it leads to dissatisfaction, disappointment and distrust amongst the subordinates.

These results reduced motivation and organizational performance and may ultimately impact the

organizational climate. There is a frequent discontent between the employee and the managers on

the degree of feedback. Untrained and unprepared managers diminish the motivation and

satisfaction among the subordinates. Further imposing unreasonable standards of performance by

the managers may diminish employee satisfaction. These untrained rates by committing errors in

performance appraisal reduce the confidence of the employee about the performance appraisal

system. (Gary Roberts & Michael Pregitzer, 2007) Organisations use this performance appraisal

for varied reasons like for increasing the productivity of the e-ISSN: 2582-5208 .

International Research Journal of Modernization in Engineering Technology and Science ( Peer-

Reviewed, Open Access, Fully Refereed International Journal ) Volume:04/Issue:03/March-2022

Impact Factor- 6.752 www.irjmets.com www.irjmets.com @International Research Journal of

47 | P a g e
Modernization in Engineering, Technology and Science [1207] employee, training and

development of the employees. This is documented in a study of why companies use performance

appraisals (CJ Forburn & R L Laud, 1983)

III. CONCLUSION

Self-esteem of the employee and also opens the door for a better future Performance appraisal is

most common in almost all the organizations and most of them are subjective based on manager

and supervisor’s assessment. Till date in majority of firms performance appraisal is a confidential

report. The vital feature of this is assessing the strengths and weakness of the employee and their

contribution towards the productivity of the organization. Few organizations use this to set the

targets and goals for the upcoming period, where as some do it in collaboration with employees

and employers and also they follow a peer assessment too. Though the parameters are set to apply

uniformly to all the employees, inconsistency and untrained ratters cannot make it successful and

fair enough. Another point to be viewed on is the favouritism by the superiors which leads to a

biased appraisal and creates discrimination among the staff. In order to avoid these external

sources can be used. Performance appraisal should be human-centric with more realistic human

values. Organisations should overall uphold the interests of the workforce and strive to provide a

positive reinforcement. Satisfied customers are those who are well motivated and contribute their

best to the organization.

 PROBLEM DEFINITON

Performance appraisal is a process that needs to be undertaken meticulously if obtaining desirable

results is anything to go by. Many managers conduct this kind of evaluation on their employees

from time to time majorly because it is an organizational tradition or requirement but not

necessarily because of its impact on the future.

However, there are those who do it for a purpose but in some instances tend to face a myriad of

challenges along the process. There are various problems with performance appraisal that

managers often face.

49 | P a g e
 OBJECTIVE OF STUDY

• To study the performance appraisal in HCL.

• To examine the methods of performance appraisal adopted at HCL Technologies.

• To explore the opinion of employees towards performance appraisal at HCL Technologies.

• To identify the relationship between the performance appraisal and productivity.

 HYPOTHESIS

Hypothesis is a statement of assumption to be proven by the researcher. It gives the direction

to the researcher and addresses the objectives of the research. It is a specific, testable

predication about what a researcher expects to happen a study.

H0: There is no correlation between the Performance Appraisal and Employee

Productivity.

H1: There is a positive correlation between the Performance Appraisal and

Employee Productivity

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 RESEARCH METHODOLOGY

Research methodology is a systematic way, which consists of series of actions or steps necessary to

effectively carry out research and the desired sequencing of these steps. The research is a process of

involves a number of interrelated activities, which overlap and do rigidly follow a particular

sequence. It consists of the following steps

❖ Formulating the objective of the study

❖ Designing the methods of data collection

❖ Selecting the sample plan

❖ Collecting the data

❖ Processing and analyzing the data

❖ Reporting the findings

 Objective of Study

Research Design

Sample Design

Data Collection

Data Analysis

Reporting of Findings

53 | P a g e
RESEARCH DESIGN

Research design specifies the methods and procedures for conducting a particular study. A

Research design is the arrangement of conditions for collection and analysis of the data in a manner

that aims to combine relevance to the research purpose with economy in procedure.

On the basis of the objective of study, the study which is concerned with describing the

characteristics of a particular individual or of group of individuals under study comes under

Descriptive Research design.

Descriptive Research Design:-

In this research design the objective of study is clearly defined and has accurate method of

measurement with a clear-cut definition of population that is to be studied.

To steps are involved in formulating the research problem:

• Understanding the problem.

• Rephrasing the problem into meaningful terms form an analytical point of view.

The training sessions are conducted in the beginning of training in order

To make us clear about the tasks provided and how handle the different situation

The research design used in this study is descriptive which includes interviewers. Questionnaire and

unit fact-findings enquiries with the employees

SAMPLING:

Sample is Researcher collect needed information from various persons who are associated with this

subject. When such associated persons are in new number research can get information from all of

them in such some people among associated persons are selected and collect information from them.

These selected persons represent the whole universe and are called sample.
Sampling unit

The sampling for this research was HCL Employees were available for interview.

Sampling frame

Sampling frame for this survey was least 50 officers & 50 workmen’s

Sampling size

Sample size for the objective (Performance Appraisal system) sample size cover for the various

departments such as

Questionnaire Design

The questionnaire for this survey includes both open ended and close ended questions.

Why questionnaire

Now a days questionnaire is commonly used to collect data that is specific are crucial to the success

of business venture. Without doubt questionnaire allow to gather information that can be found

elsewhere from say secondary information such as Manuals, Books and internet resources this is

because information collected is fresh and unique. Questionnaire helps in identifying the following

key points.

• Study about Organization’s Performance Appraisal system

• Employee’s awareness about Performance Appraisal system

• Employee’s attitude towards existing Performance Appraisal system

Way of issuing questionnaire

It was personal interview (face to face). It helped in directly asking the question to data available

through this is a time-consuming processed interviewers have little time to think.

55 | P a g e
Research study A research study for the project on performance appraisal system this is done

through questionnaire to employees. Research is a systematic and in-depth study to find out the

awareness and attitude towards PAR among employees.

 COLLECTION OF DATA

The procedure for collection of data depends upon various considerations Availability of

resources like money time manpower etc also affects the choice of procedure.

Primary data

Indirect oral interviews

Information through manuals& websites

Information through questionnaire filled by respondents

Questionnaire

The questionnaire a list of question to be asked from the respondent s the it also contains a suitable

space where the answer can be offered a better questionnaire form, which has completed, by an

interviewer.

Types of questionnaire

Structured – non disguised

Structured – disguised

Non structured – non disguised

Non structured – disguised

Secondary data

Secondary data mean that are already available that is they refer the data which have already been

collected and analysed by someone else when the researcher utilizes secondary data that has to look

into various sources where he can obtain. In this case he certainly not confronted with the problems

that are usually data nor unpublished data associated data associated with the collection of original

data secondary data may either be published.

57 | P a g e
 DATA ANALYSIS AND iNTERPRETATION

1. What is the level of difficulty of your job on scale of 1 to 5 where 1 means not at all

difficult and 5 means very difficult?

Options No. of respondents Percentage

Not at all difficult 5 10%

Somehow difficult 12 24%

Can't say 16 32%

Difficult 15 30%

Very difficult 3 6%

Difficulty Scale
Interpretation: The above-mentioned graph shows that according to 10% respondents the

level ofdifficulty of their job not at all difficult but according to 6% respondents the level

of difficulty of their job is very difficult.

2. Which of the following parameters are most important for analysing your performance

on job?

Options No. of Respondents Percentage

Working Hours 14 28%
Productivity 15 30%
No. of Defaults 7 14%
Time reporting to work 6 12%
Difficulty of job 5 10%
Others 3 6%
Parameters for Performance Analysing

59 | P a g e
Interpretation: The above-mentioned graph shows that the working hours and productivity are the

most important and preferable parameters for analysing the job performance, though numberof

mistakes made by the employees in their work is also consider while analysing the performance of

the job for an individual employee.

3. How does your company appraise your job performance?

Options No. of Respondents Percentage

Yearly 34 68%
Half yearly 15 30%
Quarterly 1 2%

Duration of period for Performance Appraisal

Interpretation: The above-mentioned graph shows that many of the companies conduct the appraisal
onyearly bas
4. How to whom with you discuss your appraisal system?

Options No. of Respondents Percentage

Department Head 20 40
Senior Supervisor 15 30
Supervisor 6 12
HR Manager 7 14
Other 2 4
Discuss with the Person

Interpretation: The above mentioned graph shows that departmental head is the main person who

discussthe appraisal with the employees of the company. Since the department head is the person

who understand the difficult of job in the respective department and also he can analyze the job

performance for the employees of respective department.

61 | P a g e
5.Ratings of the PA strategies and programmes in the company.

This question was asked to the respondents to rate the standard of

various PA strategies and programmes that take place in the
organization.

Options No. of Respondents Percentage

Good 35 70%
Average 15 30%
Bad 0% 0%
Ratings of PA strategies.

Interpretation: 70 percent of the respondents rate the Performance Appraisal strategies as good.

30 percent of the respondents rate the Performance Appraisal strategies as average. None of the

respondents rates the Performance Appraisal strategies as bad.

 6. Performance Appraisal strategies are fair and objective.

This question was asked to the employees to know if the performance appraisal strategies

are fair and objective to the employees.

Options No. of Respondents Percentage

Yes 42 84%
No 8 16%
Can't say 0 0%

PA strategies are fair or not.

Interpretation: 84 percent of the respondents say that the Performance Appraisal strategies are fair

and objective. 16 percent of the respondents say that the Performance Appraisal strategies are not

fair and objective. None of the respondents are there who can’t say anything.

63 | P a g e
7.It is necessary to appraise an employee.

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

Options No. of Respondents Percentage

Yes 50 100%
No 0 0%

Necessity to appraise an employee.

Interpretation: 100 percent of the respondents say that it is necessary to appraise an

employee. None ofthe respondents says that it is necessary to appraise an employee.

 8.There is clarity in what is expected from the employee.

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

Options No. of Respondents Percentage

Yes 50 100%
No 0 0%

Clarity in what is expected from the employee.

Interpretation: 100 percent of the respondents say that they are clear with what is expected

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

65 | P a g e
9. Regular Performance Feedback

Feedback is given to the Management Cadre Staff for the task accomplished by them.
This question was asked to the employees to know if they are provided with proper
feedback for the task they accomplish, based upon which they can work better in future.

Options No. of Respondents Percentage

Yes 31 62%
No 19 38%

Feedback is given to MCS.

Interpretation: 62 percent of the respondents say that the feedback is given to the MCS for
the task accomplished by them. 38 percent of the respondents say that the feedback is not
given tothe MCS for the task accomplished by them.
 10. Suggestions and innovations are rewarded.

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

Options No. of Respondents Percentage

Yes 18 36%
No 32 64%

Suggestions and innovations are rewarded

Interpretation: 36 percent of the respondents say that their suggestions and innovations
are rewarded. 64percent of the respondents say that their suggestions and innovations are
not rewarded.

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11. Supervisors take interest in sharing an employee’s personal concern.
This question was asked to the employees to know if the employees’ problems are dealt
well by their supervisors so that their morale increases and they are satisfied with their
job.

Options No. of Respondents Percentage

Yes 36 72%
No 14 28%
Supervisors share an employee’s personal concern.

Interpretation: 72 percent of the respondents say that the supervisors take interest in sharing

their personal concern. 28 percent of the respondents say that the supervisors do not take

interest in sharing their personal concern.

12. Annual increments/promotions are based on performance.

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

Options No. of Respondents Percentage

Yes 41 82%
No 7 14%
Can't say 2 4%

Increments & promotions based on performance.

Interpretation: 82 percent of the respondents say that the annual increments/promotions are
based on their performance. 14 percent of the respondents say that the annual increments/
promotions are not based on their performance. 4 percent of the respondents can’t say or
their answers are inapplicable.

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13. Extent of satisfaction in interdepartmental teamwork.

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

Options No. of Respondents Percentage

Very satisfied 14 28%
Satisfied 25 50%
Dissatisfied 11 22%

Satisfaction in inter departmental team work.

Interpretation: 28 percent of the respondents are very satisfied with interdepartmental

teamwork. 50 percent of the respondents are just satisfied with interdepartmental teamwork. 22
percent of the respondents are dissatisfied with interdepartmental teamwork.
14. Extent of help of training and development programmed in improving employees’
performance.

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

Options No. of Respondents Percentage

Great extent 11 22%
Some extent 35 70%
Very little extent 4 8%

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

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15. Performance Appraisal System is used in job rotation.

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

Options No. of Respondents Percentage

Mostly 6 12%
Partially 44 88%
Nil 0 0

Interpretation: 12 percent of the respondents say that performance appraisal system is

mostly used in jobrotation. 88 percent of the respondents say that performance appraisal
system is partially used in job rotation. None of the respondents say that performance
appraisal system is notat all used in job rotation.
16. Extent of the purpose of performance appraisal system being fulfilled.

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

Options No. of Respondents Percentage

Completely 33 66%
Partially 17 34%

Interpretation: 65 percent of the respondents say that the purpose of performance appraisal
is completelyfulfilled. 35 percent of the respondents say that the purpose of performance
appraisal is partially fulfilled.

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17. Please rate your satisfaction level with the performance appraisal system of your organization on a
scale of 1 to 5 where 1 means extremely dissatisfied and 5 means extremely satisfied?

Options No. of Respondents Percentage

Extremely dissatisfied 2 4%
dissatisfied 9 18%
Neutral 15 30%
Satisfied 20 40%
Extremely satisfied 4 8%

Level of Satisfaction towards Performance Appraisal System

Interpretation: The above-mentioned graph shows that most of the employees are extremely satisfied
with their appraisal system though some of the employees are either dissatisfied orneutral with their
job. This is because they did not receive the appraisal rating as per theirexpectation or their performance
did not analyse by the employer.
 FINDINGS

❖ The PAR system has been reviewing time to time to improvise the ways to assess the effectiveness, potential,

development need & career sketch of the individual for the management to formulate HRD programmer into

meet organization needs.

❖ There is problem in collecting the PAR forms back more often the forms were not received on time. The main

problem is therefore of coordination.

❖ Manager has to perform a very daunting list of time-consuming tasks standing with recalling which worker

need to be reviewed each month, arranging appraisal meeting with them, collection the relevant performance

data, filling out the appraisal forms & documenting the employees performance.

❖ PA is not actually for workmen it’s basically for the officers. Previously workmen were judged on the ground

of ability, attendance & conduct through gradation system but this time the new marking system is introduced.

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 SUGGESTIONS

Some suggestions in order to improve the appraisal methods and their use are as follows:

• Performance Appraisals should be authentic and satisfactory.

• Feedback should be made available to the employees, irrespective of whether theresult is

negative or positive.

• Feedback should also be taken from employees to check whether appraisals areserving

their objective.

• Appraisals should not involve any question of salary, incentives etc. as these arematters of

different area and affect the morale of the employer

 CONCLUSION

Appraisal is a sensitive as well as a very important issue in any organization. It directly

affects the trust and the relationship of the employees with the Superiors and the

Organization.

It was seen during the course of time that performance appraisals were affected by the

perceptions of the employees as well as the Managers in the sense that:

• Employees, who were not happy with the previous appraisals, did not actively

participate in the next appraisals as well.

• Recent experiences were fresh in the minds of employees and the employers,

which affected the appraisals to a large extent.

• Any kind of appraisal cannot be held within short period of restructuring in the

company, as it is bound to affect the results of the appraisal.

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 BIBLIOGRPAHY

• Blancher, C., & Oton, J., Performance measures in times of change. Employment
Relations Today, 32(1): 25-34; 2005.

• Fields, D., & Blum, T. C., Employee satisfaction in work groups with different gender
composition. Journal of Organizational Behaviour, 18, 181-196; 2010.

WEB. Sites

❖ www.HCL -india.com /

❖ www.googal.com / performance appraisal system.

 APPENDIX

1. What is the level of difficulty of your job on scale of 1 to 5 where 1 means not at
all difficult and 5 means very difficult?
1 2 3 4 5

2. Which of the following parameters are most important for analysing your
performance on job?

• Working hours • Productivity • No. of Defaults

• Time reporting to • Difficulty of • Other (Pl.
work Job Specify)
3. How does your company appraise your job performance?
 Quarterly Half yearly Yearly

4. How to whom with you discuss your appraisal system?

 Department Head  Senior Supervisor  Supervisor
 HR Manager  Other (Pls. Specify)

5. How are the Performance Appraisal strategies and programmes in the company?
 Good  Average  Bad

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

 Yes  No  Can’t say

7. Is it necessary to appraise an employee?

 Yes  No

8. Are you clear with what is expected of you?

 Yes  No

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9. Are the Management Cadre Staff provided with regular performance feedback?
 Yes  No

10. Are your suggestions and innovations rewarded?

 Yes  No

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

 Yes  No

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

 Yes  No  Can’t say

13. How satisfied are you in interdepartmental teamwork?

 Very Satisfied  Satisfied  Dissatisfied

14. To what extent do training and development programmes help in improving your
performance?
 To great extent  To some extent  To very little extent

15. How far is the Performance Appraisal system used for job rotation?
 Mostly  Partially  Nil

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

 Completely  Partially  Nil