A Project Report on

“A STUDY ON IMPACT OF PERFORMANCE APPRAISAL

PRACTICES ON EMPLOYEE RETENTION”AT KSHITHIJA
INFOTECH PRIVATE LIMITED BENGALURU.
BY
MANISH J
[USN: 4VV21BA058]
Submitted To
VISVESVARAYA TECHNOLOGICAL UNIVERSITY
In partial fulfilment of Post Graduate Degree
MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

Dr. Somashekhar I C Mr. Thyagaraja Babu.
Associate Professor, Founder &CEO
Department of Business Administration, Kshithija Infotech Private
Vidyavardhaka College of Engineering, Limited Mysuru.
Mysuru.

Vidyavardhaka Sangha (R), Mysuru

VIDYAVARDHAKA COLLEGE OF ENGINEERING
(Autonomous Institute, Affiliated to VTU, Belagavi)
Department of Business Administration
Accredited by NAAC with ‘A’ Grade
PB No 206, Gokulam III Stage, Mysuru - 570 002,
Karnataka 2021-2023
 DECLARATION

I, Manish J hereby declare that the Project report entitled “A Study On Impact Of
Performance Appraisal Practices On Employee Retention” has been prepared by me
under the guidance of, Dr. Somashekhar IC, Associate Professor, of the Department of
Business Administration, Vidyavardhaka College of Engineering, Mysuru and external
guide Mr. Thyagaraja Babu, Founder &CEO Kshithija Infotech Private Limited.
Bengaluru.
I also declare that this project work is towards the partial fulfillment of the university
regulations for the award of degree of Master of Business Administration by
Visvesvaraya Technological University, Belgaum.
I have undergone a summer project for a period of Six weeks. I further declare that this
Project is based on the original study undertaken by me and has not been submitted for
the award of any degree/diploma from any other University / Institution.

Date: 09/08/2023
Place: Mysuru

Signature of the student

ACKNOWLEDGEMENT
An endeavor is successful only when it is carried out under proper guidance and
blessings.I would like to thank few people who helped me in carrying this work by
lending valuable time and assistance.

I express my immense gratitude to Dr. B. Sadashive Gowda, Principal, Vidyavardhaka

College of Engineering, Mysuru, for providing an opportunity to enrich my knowledge.
I express my sincere gratitude to Dr. PSV Balaji Rao, Head of Department of Business
Administration for his support and guidance.

I am extremely grateful to Dr. Somashekhar I C, Associate Professor, Department of

Business Administration, Mysuru, for his encouragement, effective guidance and
valuable suggestions. I am also thankful to all other lectures in our department and
students of my class fortheir support and suggestions.

NAME: MANISH J
USN: 4VV21BA058

TABLE OF CONTENTS
 Sl. No Particulars Page no.

CHAPTER 1 Introduction, Industry Profile 1-5

Company profile 5-8

Vision, Mission, Quality policy 8-9

Products & Services profile 10

Future growth & prospects 10-11

SWOC Analysis 11-13

CHAPTER 1
Financial Statement Analysis 14-16

CHAPTER 2 Conceptual background and Literature review 17-28

CHAPTER 3 Research Design 29-31

CHAPTER 4 Analysis and Interpretation 32-42

CHAPTER 5 Findings, Suggestions and Conclusion 43-45

LIST OF TABLE/FIGURES/GRAPHS
 Sl.NO Particulars Page no.

Table 1.1 Company Profile 7-8

Table 1.2 Profit and Loss Account 14-15
Table 1.3 Balance Sheet 15-16
Table 4.1 Gender 32
Table 4.2 Age 33
Table 4.3 Education 34
Table 4.4 Marital Status 35
Table 4.5 Experience 36
Table 4.6 Reliability Test 37
Table 4.7 Reliability Analysis 37
Table 4.8 Correlations 38
Table 4.9 Variables Entered/Removed 40
Table 4.10 Model Summary 40
Table 4.11 ANNOVA 41
Table 4.12 Coefficient 41

Graph 4.1 Gender 32

Graph 4.2 Age 33
Graph 4.3 Education 34
Graph 4.4 Marital Status 35
Graph 4.5 Experience 36

Figure 1.1 Service 1

Figure 1.2 Company Logo 5
Figure 1.3 MISSION & VISION 8
Figure 1.4 SWOC Analysis 11
Figure 2.1 Conceptual Framework 17
A Study on Impact of Performance Appraisal Practices on Employee Retention at Kshithija Infotech Pvt Ltd, Bengaluru

EXECUTIVE SUMMARY

The focus of the business centers on providing sales services to end users. "Kshithija
Infotech Pvt Ltd" offers insights into their internal services.

A study was undertaken to explore the impact of Performance Appraisal mechanisms

on Employee Retention at "Kshithija Infotech Pvt Ltd" in Bangalore. This study is
divided into five chapters: Introduction, Project Report, and Market Analysis, Literature
Review, Research Design, Data Analysis and Interpretation, and Conclusion with
Recommendations. In the initial chapter, the researcher introduced the project report's
purpose, its significance for students' practical exposure to industry and company
operations. The primary aim is to familiarize with the company's day-to-day
functioning. The study delved into the industry's Background, major stakeholders,
vision, quality policy, product profile, and future growth are all discussed prospects.
The 2nd chapter extensively explored the literature review, establishing the theoretical
basis that informs the study and aids in building a framework model from insights of
various authors. The 3rd chapter provided a comprehensive overview of the study
design, including problem description, objectives, scope, and intended outcomes. The
4th chapter detailed the data collection and analysis process, evaluating gathered data
through demographic attributes and statistical tests like reliability, correlation, and
regression. Interpretations were drawn for each analysis, complemented by graphical
representations. The 5th chapter encompassed examined findings, recommendations,
and the conclusion. It outlined major conclusions based on data examination and
categorized them into primary and additional findings. The former addressed framed
objectives, while the latter encompassed observations and industry suggestions. The
conclusion offered a detailed discussion on the subject, summarizing how the defined
objectives were achieved through data analysis and interpretation.

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CHAPTER -1
INTRODUCTION ABOUT ORGANISATION AND INDUSTRY

1.1. INDUSTRIAL PROFILE:

Service industries encompass sectors that do not directly engage in producing tangible
goods like agriculture and manufacturing do. Some service sectors, such as
transportation, wholesale and retail trade, form a crucial link in delivering goods from
agricultural and manufacturing sectors to end consumers. Conversely, there are services
offered directly to consumers, like healthcare, education, information services, legal
services, financial services, and public administration. In contemporary economies,
tertiary sector typically contributes to 70-80 percent of employment. In essence, the
service industry refers to the economy focused on providing services.

Figure 1.1 Service

Economists divide economic activity into two broad categories: commodities and
services. Agriculture, mining, manufacturing, and building are examples of
manufacturing industries. all of which result in tangible products. Alternatively, service
industries encompass a wide array of activities, such as banking, communication,
wholesale and retail trade, professional services like engineering, software
development, and medical care, non-profit endeavors, consumer services, and
government functions including defence and justice administration. Developed nations
are characterized by economies dominated by the service sector, while less-developed
countries tend be a larger percentage of the population engaged in Crucial activities
encompass sectors such as Agriculture and Mining.

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Throughout the 20th century, the global economy progressively allocated a greater
share of resources to services. Notably, in the US, the service sector's contribution to
the gross domestic product (GDP) surpassed 50 percent in 1929, exceeded two-thirds
in 1978, and reached over three-quarters in 1993. As of the early twenty-first century,
service sectors accounted for more than 60% of global GDP and employed more than
one-third of the global workforce.

The rising automation of the production process is the fundamental cause for the rise
of service industries. With robots allowing a smaller staff to create a higher quantity of
physical things, service tasks such as distribution, administration, finance, and sales
have grown in importance. A significant rise in government employment is also
contributing to the expansion of the service industry.

Agribusiness, or agriculture viewed as a business, is more particularly the sector of a

modern national economy that is responsible for the production, processing, and
distribution of food and fibre products and byproducts.

Many of critical the agricultural activities are carried out outside of farms in highly
industrialized nations. These include the creation and manufacture of tools, fertilizers,
and seeds; in certain nations, the processing, preservation, and delivery of goods have
also been separated from the practice of fundamental agriculture. As a result, farming
has evolved into a more specialized and corporate industry. Some commercial entities
even grow their own crops, such as a winery with its own vineyards or a sizable
commercial producer of vegetables for canning or frozen food with a farm of its own.
To improve production, many of these farms use sophisticated machinery and computer
technologies.
Conglomerate enterprises that are engaged in non-agricultural industries have recently
entered the agribusiness by acquiring and managing sizable farms. a few food
processing businesses that run farms have started selling fresh vegetables under their
own brands.

The historical roots of India's booming service economy:

India differs from other developing nations' economy in which its growth has been
driven by the service industry rather than manufacturing, which requires a lot of labor.
This article summarizes the recent research demonstrating that India has a long history

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of being strong in the service sector and that its service-led development may enhance
rather than diminish historical advantages.
Due to its recent remarkable economic growth rate and its large population, India is
emerging as a prominent player in the global economy (Bosworth et al., 2007). What
sets India apart from other Asian economies is the stronger performance of its service
sector.
Unlike other developing Asian countries like China, which have seen growth driven by
strong industrial performance,

Measuring long-run productivity performance:

Although having a lot of knowledge about the long-term development of wealthy

nations like the UK, we know very little about the historical performance of less
developed nations like India. In recent research, we aim to address this by comparing
sectoral productivity performance in UK and India from 1870 to the present (Broad
berry and Gupta 2008). We do this by utilising quantitative data gathered by the British
during their period of colonial administration in India.

Our study shows that India's recent service-led development has significant historical
precedent. India's comparative productivity performance in the colonial era was already
higher in services than in industry or agriculture.

This focus on services is in consistent with the large body of recent research on long-
run growth among developed economies, which suggests that services have played a
important role in comparative economic performance in both more recent times and in
the late 19th and early 20th centuries (Broad berry 2006).

India has historically behind the UK in development. Between 1870 and 1970, when
India's economy lagged behind the UK, output per worker in India decreased from
15% to less than 10%. India has been catching up to the UK since the 1970s, but by
the end of the 20th century it had fallen further behind than it had in the early 1870s.
Despite India's tremendous economic growth in it may take time for India to reclaim
its relative position from the late 19th century, since it has fallen in recent years.

Productivity by sector:

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An key factor in the explanation of India's dismal overall productivity performance is

agriculture. With about two-thirds of employment now and three-quarters of all
employment in India as of the late 19th century, the sector continues to be the country's
largest employer.

In addition, the one industry wherever India has kept lagging behind is agriculture,
where labour productivity fell from 10% of UK levels in late 19th century to 1% at the
end of the 20th. It is obvious that India must boost agricultural output if total
productivity performance is to significantly improve.

Current study on economic growth and development frequently highlights the

importance of industry. This is especially true when it comes to Asia in the 20th century,
when the prominent examples of China, South Korea, and Japan have all been
characterised as having developed through manufacturing (Okawa and Rosovsky 1973;
Pilat 1994).

The comparative productivity figures demonstrate that the Indian scenario deviates
from this tendency. While there have been swings in the relative productivity of the UK
and India's industrial sectors, there hasn't been a general upward trend, with India's
productivity in the late 19th and late 20th century being about 15% that of the UK.

Comparative labour productivity between India and the UK has only increased in the
services sector, from about 15% in the late 19th century to over 30% by end of 20th
century. Thus, services have contributed positively to India's productivity performance
during the course of the period, preventing relative decrease before 1870 and driving
the catching-up process starting in the 1970s. The expansion of the service sector's
productivity as it is not only evident in contemporary services like finance but also in
trade and transportation.

Since the First World War, the productivity gap between the UK and India has been less
in services than in industry or agriculture. Thus, the dynamic Indian economy's recent
growth has deep historical foundations. However, why did the service industry perform
better even during colonial times in India? Our research reveals that the education
system in India, at least in part, holds the key to finding the solution.

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At first look, this would be appear surprising considering India's track record of
investing in both physical and people resources. Over time, India's dismal productivity
record has been firmly attributed to underinvestment in education generally.

Nevertheless, there has been a longstanding bias in educational funding that prioritizes
secondary and higher education, resulting in a limited number of highly educated
individuals primarily employed in the service sector. When information on the
educational backgrounds of workers per sector is available, it is reasonably simple to
objectively establish this for the recent past.

It can also be displayed for the colonial era, for which caste-specific literacy figures are
available. A select few members of the upper castes, including the warrior and priestly
Brahman castes as well as the commercial castes, sought secondary and higher
education in addition to elementary schooling. The need for education was low since
the bulk of the people, who worked in agriculture and cottage industry, needed minimal
knowledge to do their occupations and had little opportunities for promotion due to the
caste system.

The first lesson from this study is that India's service-led development can be a strength
rather than a problem. In recent years, the reliance on manufacturing as the primary
sector for development and the disregard for services have all but vanished. study of
economic performance in wealthy nations, while it still reigns supreme in that of
underdeveloped nations. The second takeaway is that long-term economic success is
influenced by history. A development plan that takes into account the legacies of the
past is more likely to succeed than one that seeks to eliminate those legacies.

1.2 COMPANY PROFILE:

Figure-1.2: Company Logo

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Kshithija Infotech Private Limited, a private firm, was founded on March 13, 2006,
making it 16 years, 8 months, and 20 days old. It is registered with the ROC-Bangalore
Registrar of Companies as a non-government organization. The firm had an authorized
share capital of Rs. 2,500,000 and a paid-up capital of Rs. 100,000 at the time of
incorporation.

As per the company's registration, Kshithija Infotech Pvt Ltd is primarily involved in
the production, supply, and documentation of ready-made (non-customized) software,
including operating systems software, business applications software, and computer
game software for all platforms. The company is classified under business activity
class/subclass code 72200. In addition to its core activities, Kshithija Infotech provides
bespoke software solutions by thoroughly understanding the user's needs and
challenges through consulting. This also encompasses the development of custom
software tailored to specific user requests. Furthermore, the company offers services in
software maintenance, website design, and the creation of software based on user
instructions. These activities fall within the realm of computer and associated activities,
which are, in turn, classified under real estate, rental, and commercial operations.

The corporate identity number and registration number of Kshithija Infotech Private
Limited are u72200ka2006ptc038726 and 038726, respectively. Its email address is
[email protected], and its registered location is No. 329/37/2, 10th Main Road, 1st
Stage 2nd Phase, Gokula Extension, Mathikere Bangalore, Bangalore, India 560054,
where the firm is actually registered. You may contact this business via email or postal
mail with any questions.

Hemalatha Thyagaraj, Mohan Sundar, and Thyagarajababu Akash are the company's
directors.

Since its founding 16 years ago, Kshithija Infotech Pvt Ltd has focused mostly on the
business services sector. The firm is still operating today. Jayaraman Thyagaraja Babu
and Hemalatha Thyagaraj are the current panel members and directors.

The Bangalore (Karnataka) The registrar office is the location where the corporation is
registered. The registered office for Kshithija Infotech Pvt Ltd is at 329/37/2, 10th Main
Road, First Stage, Second Phase, Gokula Extension, Mathikere Bangalore, Bangalore,
Ka 560054 in.

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The team of committed professionals at Kshithija Infotech Pvt Ltd (KIPL), an ISO
9001:2015 and ISO 27001:2013 firm, has twenty years of technical and practical
experience in IT & OA solutions.

Kshithija is a leading provider of comprehensive solutions for the government, MNC,

corporate, financial institutions, universities, academic, and private sectors in the areas
of information and communication technology, networking and internet bandwidth,
library automation, hardware, software, environmental civil, cyber security, security &
analytical surveillance, artificial intelligence, health, and others.

Kshithija has won the Best Business Partner award from Globus Info Solutions,
Samsung & Uniview and recently we have received an Outstanding Achievement
Award for Business Excellence from All India Achievers Foundation, New Delhi.

COMPANY PROFILE:
NO 329/37/2, 10TH MAIN ROAD, 1ST STAGE 2ND PHASE, GOKULA
EXTENSION, MATHIKERE BANGALORE, Bangalore, INDIA 560054

Company Name Kshithija Infotech Pvt Ltd.

Company Type Private Limited

CIN No. U72200KA2006PTC038726

Head office Bengaluru

Founders HEMALATHA THYAGARAJ: MOHAN

SUNDAR: THYAGARAJABABU
AKASH
E-mail address [email protected]

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Company Service Company limited by Shares

Established Year 2006

No of Employees. 950+

Table-1.1: Company Profile

NATURE OF BUSINESS
The ISO 9001:2008-certified Kshithija Infotech Private Limited (KIPL) is run by a
squad of committed experts with 20 years of technical and real-world experience in
technology & solutions.
Through Infosys, which has been hired by the Digital Library of India to construct the
Universal Digital Library project, KIPL offers back-end assistance & back-to-back
business modules on turnkey projects in the areas of content production, digitization,
multimedia, and data administration. meeting the technological requirements of its
parent organisation M/s Tantra Gnana Pvt Ltd. Legal process outsourcing (LPO),
knowledge process outsourcing (KPO), cyber law, techno legal compliance (TLC) &
information security services (ISS), e-governance solutions, educational services, law
firms, IP firms, corporate departments, cooperative departments, financial institutions,
banks, universities, and legal research organisations, etc., allowing KIPL to dominate
the information and communications technology sector.
MISSION & VISION

Figure-1.3: MISSION & VISION

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MISSION:
● To create flexible, easy, secured and affordable solutions locally and globally

● To be known for understandings its customers’ business

● To remain as the dream destinations for IT professionals The company’s main

vision is to reach the company at global level in the industry by defeating all
Competitors. The company mainly believes in the client's satisfaction, we as a
team put all our efforts to make the products better and all kind services that are
needed for the client.

VISION:

We exist to make our customers perform their business so efficiently and

effectively by providing innovative technology – based solutions..

QUALITY POLICY:

A quality policy is a document created by management to communicate the top

management's direction with regard to quality in a quality management system. A
critical component is high-quality policy management.
An organisation must have a documented, clearly stated quality policy that is shared
and understood throughout the company, according to Section 5.2 of the ISO
9001:2015 standard. Some of the standards for quality policies are also outlined in
Section 5.2.
A group of employees who perform the same or comparable tasks and who frequently
get together to discuss, analyse, and resolve issues relating to their jobs is known as a
quality circle or quality control circle. It has a minimum of three and a maximum of
twelve members. The group, which is typically small in number and is led by a
supervisor or manager, offers its recommendations to management. When practical,
workers put the recommendations into action on their own to boost organisational
performance and inspire workers. Quality circles, which peaked in popularity in the
1980s, are still in use today as Kaizen groups and other worker engagement initiatives.

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PRODUCT/SERVICES:

We offer total IT solutions by providing practical methodology which makes us a

differentiator for IT solutions. KIPL spends time in understanding a client's IT
recruitments before proposing a solution so as to produce a winning strategy to solve
the problems that are faced currently, plus providing a long-lasting structure upon
which the IT & OA can be built.

● Software publishing
● Consulting and provision [publication of software covers the creation, provision,
and documentation of pre-made (non-custom) software] Operating systems
software
● Business & other applications software
● Computer games software for all platforms
● Consultancy includes providing the best solution in the form of custom software
after analysing the user’s needs and problems.

● Custom software also includes made-to-order software based on orders from

specific users.
● Also, included are writing of software of any kind following directives of the
users; software maintenance, web-page design]., it comes under division
computer and related activities and this come under section real estate, renting
and business activities

ACHIEVEMENTS AND AWARDS:

● Ambition Box best place to work 2021.

● Invite employee’s rate price 2020.
● Ambition Box best place to work 2022.

FUTURE GROWTH AND PROSPECTS:

The COVID-19 pandemic has pushed companies to scale remote work, accelerate
digitization and automation. Automation continues to increase capture leads from
inbound mails, online campaigns, phone calls, website management, chat, and much
more. At present, Digital Marketing offers an opportunity for industry leaders,
governments, and public policymakers to focus joint efforts on allowing workers to
prosper in the new economy.

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The Digital Marketing industry has been progressing at a 30% growth rate year on
year. There is a huge demand for Digital Marketers, while correspondingly, the supply
is low. From FMCG companies to automobile manufacturers, media houses, IT
services agencies, everyone is now online.

The number of active Indian online users will reach around 666 million by 2023.
According to a survey by Global Data, lockdowns would cause the Indian internet
business industry to grow to 7 trillion rupees by 2023.

SWOC Analysis

Figure-1.4: SWOC Analysis

For vital arranging, choosing the showcasing methodologies and breaking down the
holes, doing a SWOC Analysis is vital. SWOC Analysis incorporates an insightful
posting of one’s qualities, shortcoming, opening and dangers. It is prompted that
organizations do this investigation in any event once in a while. It is a protracted
application that involves time and a unique desire to assess each angle completely.
Incorporations from the most recent year and the achievement and disappointments
ought to likewise be considered. SWOC Analysis is a structure planning method
used to evaluate the strengths, weakness, opportunity and threats involved in a
project or in a business venture. A SWOC Analysis can be carried out for a product,
place, industry or person. It involves specifying the objective of the business or an
organization and identifying the internal and external factors favourable and
unfavourable to achieving that objective.

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 STRENGTH:

● Well experienced marketing and another functional department

● Inhouse separate teams for marketing for clients and company operations.
● Team updated with latest marketing trends
● Quality management system.
● Employees are experienced and dedicated to work.
● 95% capacity utilization.
● The company’s main aim is to achieve the “Economies of scale”.
● Strong management.
● Kshithija Infotech Pvt Ltd. Provides better services.
● Kshithija Infotech Pvt Ltd has several different distribution networks..
● The communications division can target various segments.
● A seasoned participant in a market
● ISO quality standard certification
● Cost aggressive.
● High technology.
● Superiority controls

 WEAKNESS:

● Taking time for structured system processes.

● Resource limitations.
● Flexibility in pricing to serve competition.
● Very less expenditure on R&D.
● Machining components.
● Raw materials supply.
● The low stage of study and development capability.
● Being subjected to a perilous automobile sector recession.
● Low worker productivity brought on by ignorance.

 OPPORTUNITIES:

● Innovative marketing strategies

● Diversification of business segments
● Emphasis of the brand value

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● Developing an export market.

● From the recent change of the export market, we have a great possibility to sell
our product on the worldwide market thanks to globalisation.
● The company can increase its market share by collaborating with or forming
partnerships with industries involved in forging manufacturing.
● To be concerned about the organised sector's market share.
● Improve technology.
● Unmet consumer requirements,
● Growing export marketing
● Emergence of new technologies.
● Major export opportunities may be attained by diversifying the export portfolio.
● There is a sizable market for both automotive and non-automotive applications in
India and abroad.

 CHALLENGES:

● Innovation of algorithms by ad platforms like Facebook, Instagram

● Competition from local and multinational agencies
● Internet reach and connectivity in rural areas.
● They began importing the merchandise as a result of the rivals who were original
equipment producers.
● The corporation cannot accept such a large fluctuation rate since the costs of the
products' raw materials are growing steadily. The large-scale industries are
focusing a lot of attention on R&D to produce novel concepts. This poses a
challenge to the corporation since it will no longer be able to spend as much
money on R&D.
● New competitors in the technical expertise of foreign players in the local market.
● Technology-based business.

● Price war.
● Substitute products.
● A rise in the number of international participants in the regional market.
● OMEs are putting pressure on pricing.
Imports compete in the alternative market on the basis of price.

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FINANCIAL STATEMENTS:

The final outcomes of the accounting process are financial statements, which show a
financial performance of the certain time period and the financial status as of a
particular date. For the benefit of diverse stakeholders, business enterprises produce
and publish financial statements. These statements comprise a balance sheet and a
statement of profit and loss. These statements' main goal is to give the management
and other interested parties the information they need to make decisions about the
undertaking's affairs.

Table 1.2: Profit and Loss Account

Books of Kshithija Infotech Private Limited Profit and Loss account as on December
31, 2021.

For the For the For the For the

year year year year
Particular Note ended ended ended ended

No. 2022 2021 2020 2019

1 INCOME: Rs. Rs. Rs. Rs.

a. Revenue from operation 21

i. sales of products 12694.89 8987.25 12263.86 16070.14

ii. other operating revenues 397.29 275.03 450.53 998.77

13092.18 9262.28 12714.39 17068.91

b. other income 22 142.41 61.78 43.13 99.43

Total Revenue 13234.59 9324.06 12757.52 17168.34

2 EXPENSES:

a. Cost of material consumed 23 8026.73 4007.53 7173.96 10438.38

b. Changes in inventories 24 -1303.69 516.53 -741.89 -738.46

c. Employee benefit expenses 25 1200.41 761.96 917.38 912.47

d. Finance costs 26 348.54 188.39 226.45 229.59

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e. Depreciation & amortization 12 1254.3 1215.48 1199.78 1177.16

f. other expenses 27 4794.46 3722.38 4768.25 5711.67

Total Expenses 14320.75 10412.27 13543.93 17730.81

Profit/ (Loss) before exceptional

items and tax Exceptional items -1086.16 -1088.21 -786.41 37.54

(i) Exchange gain/(Loss) on foreign

currency loan 151.06 -244.61 -429.07 237.1

(ii) Others 28 -142.44 -195.44

(1077.54
Profit/(loss) before tax 0 -1528.26 -1215.48 274.64

Tax expenses

(i) Current tax - -

(ii) Deferred tax - -

Profit/(Loss) for the year after the

tax -1077.54 -1528.26 -1215.48 274.64

Earning per equity share (EPS):

Basic and diluted 29

Basic and diluted -137.89 -195.56 -155.54 35.14

Table 1.3: Balance Sheet

Books of Kshithija Infotech Private Limited Balance sheet as on 31-03-2021
Note As on As on As on As on
Particulars 31st 31st 31st 31st

No. Mar-22 Mar-21 Mar-20 Mar-19

I EQUITY AND LIABILITIES

1 Shareholders’ Funds

a. Share capital 3 781.47 781.47 781.47 781.47

b. Reserve and surplus 4 10785.5 11863.1 2 13361.3 7 14606.8

2 Noncurrent Liabilities

a. long term borrowings 5 7407.16 6905.22 6394.85 6231.54

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b. Other long-term liabilities 6 1731.88 1315.66 352.35 327.17

c. long term provisions 7 33.52 3.91

3 Current liabilities

a. short term borrowings 8 3317.02 1680.85 1364.73 1943.3

b. Trade payables 9

(i) Total outstanding dues of

micro and small enterprises 161.22 335.18 68.66 52.56

(ii) Total outstanding dues of

creditors other than micro and
small enterprises 1925.28 1362.76 2257.19 2534.15

c. Other current liabilities 10 527.09 280.07 537.81 550.65

d. short term provisions 11 169.08 103.14 965.22 100.53

Total Equity and liabilities 26839.3 24627.4 7 26083.6 5 27132.1

I ASSETS

1 Noncurrent asset

a. Properly plant and equipment 12

(i) Tangible asset 12.1 6623.3 7669.82 8822.39 9655.1

(ii) Intangible asset 12.2 16.79 3.04 286.08 40.16

(iii) Capital work in progress 13.3 14.8 66.5 167.09

b. Noncurrent investment 13 4466.54 4466.54 4466.53 4466.53

c. long term loans and advances 14 1277.58 1277.58 1277.57 1277.57

d. Other non-Current assets 15 655.29 634.41 600.16 533.31

2 Current asset

a. Inventories 16 8464.65 6180.61 6308.74 5619.79

b. Trade receivables 17 4818.01 3588.39 3495.74 4676.8

c. Cash and bank balances 18 206.58 465.67 450.34 390.28

d. short term loans and 19 175.68 202.04 168.07 165.44

advances

e. Other current assets 20 134.88 124.57 141.53 140.06

Total Assets 26839.3 24627.4 7 26083.6 5 27132.1

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CHAPTER-2
CONCEPTUAL BACKGROUND & LITERATURE REVIEW

THEORITICAL BACKGROUND
The effect that organisations' methods for assessing and evaluating employee
performance have on their capacity to retain workers is stated as the "impact of
performance appraisal practises on employee retention." By fostering a sense of job
satisfaction, engagement, and commitment among employees, effective performance
appraisal practises, such as giving constructive feedback, recognising
accomplishments, and offering development opportunities, can positively influence
employee retention. This results in employees staying with the company for a longer
period of time.

The following essential principles will help you comprehend how performance
assessment procedures affect employee retention.

Conceptual model

Fig-2.1: Conceptual model

Job knowledge:

The Work knowledge refers to a degree of understanding, abilities, and competence that
person has in relation to their work obligations when discussing performance rating
procedures and employee retention. Employee retention can benefit when performance

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assessment procedures accurately analyse and acknowledge an employee's work

expertise. Employee retention rates within an organisation may be boosted by showing
employees that their knowledge and skills are appreciated, which in turn leads to better
job satisfaction, motivation, and a sense of contentment.

Punctuality:

When discussing performance assessment procedures and employee retention, being on

time and consistently present at work is discussed to as being punctual. Employee
retention can be affected when timeliness is taken into account in performance
assessment procedures. Recognising and rewarding workers for being on time sends a
message about the value of dependability and discipline, cultivating a pleasant
workplace environment and raising general employee satisfaction. Employers are more
inclined to respect employees who regularly fulfil their commitments to show
dependability and commitment, which can lead to improved retention rates for those
employees who routinely show up for work on time.

Leadership:

When discussing performance review procedures and employee retention, the term
"leadership" refers to a manager or supervisor's capacity to successfully lead, motivate,
and assist their teams in reaching organisational objectives. Employee retention may be
impacted by performance appraisal procedures that evaluate leadership abilities and
attitudes. Effective leadership techniques may improve job satisfaction, increase
employee involvement, and create a pleasant work atmosphere. Employee retention
will rise if workers feel encouraged, inspired, and motivated by their managers, since
this will boost their loyalty and devotion to the company. Effective leadership is
essential in fostering an environment that fosters employee development, progress, and
happiness, all of which lead to improved retention rates.

Communication:

Communication refers to the sharing of information, feedback, and expectations

between managers and employees in the context of performance review procedures and
employee retention. Employee retention may be affected by effective communication

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within performance assessment procedures. Employees may better grasp their

performance objectives, get helpful criticism, and pinpoint areas for development with
clear and open communication during performance assessments. Effective
communication increases employees' sense of being heard, appreciated, and supported,
which improves their engagement and job happiness. Higher employee retention rates
result from this, as workers are more inclined to remain with a company where they
feel heard and where they have a clear grasp of their performance and growth goals.

Attendance:

When discussing performance assessment procedures and employee retention, the term
"attendance" refers to employees' regular and constant attendance at work and
adherence to work schedules. The retention of employees may be affected by
attendance, which is a key consideration in performance review procedures.
Organisations can gauge an employee's dependability and commitment by identifying
and analysing attendance patterns and timeliness during performance evaluations.
Employee retention rates may increase if workers are perceived as reliable and
committed to their jobs, which is more likely to be the case when they routinely exhibit
good attendance. Additionally, paying and praising staff for regular attendance may
boost their motivation and job satisfaction, deepening their commitment to the company
and raising the possibility of retention.

Employee retention:

The capacity of the company to keep its staff over time is referred to as employee
retention. It gauges the degree to which workers are encouraged to stay with the
company instead of seeking employment elsewhere. High employee retention is a sign
that workers are devoted to their work and the company's objectives, pleased with their
work, and have a favourable opinion of the organisation. It is a vital indicator for
businesses since it aids in preserving institutional knowledge, stabilising the personnel,
cutting expenses associated with turnover, and promoting a happy workplace
environment.

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REVIEW OF LITERATURE

1. Richa N. Agarwal and Anil Mehta. (June 1, 2014)

The goal of the case study Richa N. Agarwal and Anil Mehta performed in Indian IT
sector was to examine how the performance evaluation and workplace culture affect
job satisfaction and attrition. Companies in Pune, Bengaluru, and Delhi NCR has
examined by the researchers. They discovered a strong connection between job
happiness, the workplace, and performance evaluation. Employees were additionally
like to demonstrate better job satisfaction if they were happy with their performance
review and working environment. The analysis also showed that these elements were
very important in determining whether or not employees remained with an organisation.
Other internal and external variables that contribute to the high attrition rate in the IT
industry were also found by the researchers. The study emphasises the need of efficient.

2. Geon Lee and Benedict S. Jimenez ( June 3, 2010)

The link between performance-based management strategies and federal employee job
turnover intent is examined in this case study. To explore this relationship, data from
the 2005 Merit Principles Survey is utilized. The results point to a favourable influence
of performance management on turnover intention, with the installation of a
performance-based compensation system and performance-supporting supervision
leading to a decreased chance of federal employees leaving their agency. These results
has important complications for public administration since they show how efficient
performance management techniques may aid in staff retention and organisational
continuity.

3. Vishal Gupta, Sushil Kumar (1 January 2013)

The goal of the study, which remained specifically focused on the Indian setting, was
to examine the connection between employee engagement and perceptions of fairness
in performance evaluations. The study looked at one-dimensional and three-
dimensional conceptualizations of participation in two separate phases. The results
show a strong relationship between employee engagement and the distributive and
informational justice elements of performance assessment. Particularly in terms of
lowering employee burnout, it was discovered that distributive and informational
fairness perceptions during a performance review session increased participation. In

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addition to introducing psychometrically accurate measures for evaluating these

characteristics, the study offers insightful evidence of the beneficial effects of
performance appraisal justice on employee engagement in the Indian corporate setting.

4. Rajesh Kumar Upadhyay, Khaliqur Rehman Ansari [email protected],

and Pankaj Bijalwan (December 17, 2019)
Rajesh Kumar Upadhyay, Khaliqur Rehman Ansari, and Pankaj Bijalwan's case study
on the service industry emphasises the value of cooperation in embracing change and
delivering better service. In the context of Uttarakhand's service industry, the study
investigates the effects of performance appraisal (PA), employee satisfaction (ES), and
employee retention (ER) on team effectiveness (TE). The findings show a solid positive
association between team effectiveness and performance reviews, with employee
retention serving as a partial mediating factor. Additionally, the relationship between
performance reviews and employee retention is moderated by employee satisfaction.
These findings highlight the significance of effective performance assessment,
employee happiness, and staff retention methods in boosting the success of service
organisations in Uttarakhand.

5. Wayne F. Cascio (05 Jan 2014)

The case study emphasises the advantages of using the performance management,
human resource development (HRD), and employer branding to increase employee
retention, particularly with the context of a worldwide economic recovery. Employers
are placing greater focus on internal promotions and investing in HRD and career
development efforts as voluntary turnover rises during this recovery phase. According
to the study, companies that have strong employer brands, effective employee
development-focused performance management strategies, and cutting-edge HRD
strategies like technology-delivered training and social learning tools are more likely to
succeed in retaining talent. While not all-inclusive, these tactics are regarded as three
essential components for improving employee retention in the changing business
climate.

6. Bilqees Ghani, Muhammad Zada, Khalid Rasheed Memon (2 March 2022)

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This case study concentrated on devising strategies for retaining employees within the
hospitality sector, with a specific focus on tackling challenges related to retaining
skilled individuals and how this affects the overall performance and sustainable
development of the company. The study extensively analyzed academic literature and
peer-reviewed articles spanning from 2010 to 2020. The investigation centered on the
significance of employee contentment as a pivotal element in fostering retention. The
outcomes highlighted that sustaining positive work environments, facilitating growth
prospects, ensuring effective communication, and refining recruitment and selection
procedures are critical factors influencing employee retention in the hospitality
industry. The research proposes a comprehensive model tailored for the hospitality
sector, aiming to augment recruitment and selection practices while bolstering
employee retention rates.

7. Md Asadul Islam, Dieu Hack-Polay, Ahasanul Haque, Mahfuzur Rahman (29

July 2021)

Arif Md. Khan and Amer Hamzah Bin Jantan conducted a case study that examines the
influence of transactional leadership on innovative work behavior within the banking
sector of Bangladesh. Additionally, the study explores the moderating role played by
psychological empowerment in the connection between transactional leadership and
innovative work behavior. Through a quantitative approach, data were gathered from
372 employees and subjected to analysis using SPSS and Smart-PLS. The findings
reveal a negative impact of transactional leadership on innovative work behavior.
Nonetheless, the study uncovers that the interplay between transactional leadership and
innovative work behavior is influenced by psychological empowerment. Specifically,
when employee empowerment is low, the relationship between the two factors
weakens; conversely, a higher level of empowerment intensifies the relationship, albeit
remaining negative. The research underscores the significance of considering
psychological empowerment as a pivotal element in comprehending the intricate
interplay between transactional leadership and innovative work behavior within the
banking sector of Bangladesh.

8. Shikha Rana, Shalini Singh (18 January 2022)

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In their case study conducted within the Indian banking sector, Shikha Rana and Shalini
Singh aimed to explore the correlation between fairness in performance appraisal (PA)
and the emotional commitment (affective commitment - AC) demonstrated by
employees. Additionally, the researchers investigated how age and gender might
moderate this correlation. A total of 298 banking sector employees were chosen at
random for the study, and the collected data underwent analysis using structural
equation modeling. The results reveal a significant connection between PA justice and
the emotional commitment of bank employees in India. Furthermore, the study
uncovers that age and gender exert moderating influences on this correlation, with older
employees and female employees exhibiting stronger moderating effects. This research
enriches existing literature by shedding light on the impact of age and gender as
moderating factors in the association between PA justice and affective commitment,
specifically in the unique context of the Indian banking sector.

9. Aboelkasim Diab and Jorge Pais (August 11, 2021)

The case study evaluated the performance of elastomeric and plastomeric asphalt
binders and mixtures across varied temperatures, highlighting their strengths at high
and low temperatures. Elastomeric binders excelled in resisting deformation at high
temperatures, while plastomeric binders displayed improved crack resistance and
stiffness in colder conditions. The research underscores the need to consider
temperature-specific characteristics when selecting asphalt materials for different
climates and road applications. In a separate study, researchers examined generational
effects on employee retention and motivation, finding that transformational leadership
impacted retention across Generation, and factors like work-life balance and autonomy
influenced intrinsic motivation differently among various generations. This highlights
the importance of addressing generational differences when designing strategies for
employee motivation and retention.

10. C.Christopher Lee, Hyoun Sook Lim, Donghwi (18 April 2022):

In this study, the researchers aimed to explore the moderating effects of employee
generations on factors related to employee retention and motivation in the workplace.
They collected survey data from 489 participants using Amazon Mechanical Turk and

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analyzed the data using structural equation modeling. The findings revealed interesting
similarities and differences between generations regarding the factors influencing
employee retention and motivation. Transformational leadership was found to have a
significant impact on retention for Generation X, Generation Y, and Generation Z
employees. Additionally, various factors, such as work-life balance, autonomy, and
corporate social responsibility, showed significant impacts on intrinsic motivation for
different generations. The study highlights the importance of considering generational
differences when designing strategies to increase employee motivation and retention in
organizations.

11. Shubhangi Bharadwaj, Nawab Ali Khan, Mohammad Yameen (26 August
2021)

In order to investigate the connections between employer branding, work happiness,

organisational identity, and staff retention, the researchers in this case study performed
a sequential mediation analysis. The goal of the study was to comprehend the
underlying processes that support employee retention in the context of employer
branding initiatives. The results showed that employer branding significantly influences
employee retention in an indirect manner, through a sequential process of work
satisfaction and organisational identity. In particular, it was discovered that a good
employer branding strategy had a favourable impact on work satisfaction, which in turn
had a beneficial impact on organisational identity and boosted staff retention. These
findings underline the significance of employer branding and its influence on staff
attitudes and organisational identity, which in turn affects staff retention decisions.

12. Zubair Hassan (18/2022)

With an importance on the mediating impacts of reward and compensation (R&C)

practises, Zubair Hassan's case study investigates the influence of human resource
management (HRM) practises on the employee retention in Maldives' retail industry.
To this study, a sample of 250 workers from the capital city of the Maldives were
chosen, and information was gathered using a standardised questionnaire. The results
show that R&C procedures significantly and favourably affect employee retention. The
study did not discover any appreciable impacts of performance evaluation, training and
development, or career advancement on employee retention, though. The findings also

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imply that performance appraisal (PA), training and development (T&D), and staff
retention are all mediated by R&C practises. But there weren't any PA and T&D's
moderating influence on the link between HRM procedures and employee retention.
The overall finding indicates that improving employee retention in the Maldives' retail
industry may be accomplished by highlighting good attitudes of HRM practises,
particularly R&C practises. Moreover, through the mediating impact of R&C practises,
PA and T&D might indirectly affect worker retention.

13. Syed Muhammad Fazal-e-Hasan, Hormoz Ahmadi, Harjit Sekhon, Gary

Mortimer (11 May 2022)

Researchers examined how green innovation and optimism affected employee retention
in this case study. In the domains of organisational behaviour and strategic
management, "green innovation," which refers to the adoption of environmentally
friendly practises in organisations, has gained popularity. The preferences of employees
for companies with such avant-garde environmental practises are not well understood,
yet. The study looked at the connection between employees' preferences for
environmentally friendly innovation, their feelings of hope, and their plans to remain
with the company. Data from 403 Australian employees were gathered and examined.

14. Sami Alajlani and Lawal O. Yesufu (11 Jul 2022)

The case study examines how human resource (HR) practises at three private
institutions of higher learning in the United Arab Emirates (UAE) affect employee
retention. The study's goal was to investigate the connection between different HR
procedures and employee retention while taking into account the demographics of
workers, including both domestic and international workers. The results showed that
HR practises had a favourable impact on employee retention. UAE locals had somewhat
good attitudes of HR practises, however expats had less favourable perceptions and
impacts.

15. Khaliqur Rehman Ansari

In this case study, Rajesh Kumar Upadhyay, Khaliqur Rehman Ansari, and Pankaj
Bijalwan investigated the relationship between team effectiveness (TE) in the service
industry and performance appraisal (PA), employee satisfaction (ES), and employee
retention (ER). For data analysis and validation of the study's design, the data is

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examined, the study used statistical methods such as confirmatory factor analysis and
structural equation modelling. The results showed that PA and TE had a substantial
association, with ER serving as a partial mediator. Furthermore, it was noted that ES
acted as a mediator between PA and ER. The study offers useful recommendations for
the Uttarakhand service industry, highlighting the significance of efficient personnel
retention, employee happiness, and performance assessment procedures in raising team
productivity.

16. Saba Gulzar Avinash Advani Dr. Tariq Jalees

The researchers sought to determine the impacts of performance evaluation, career

growth, work satisfaction, empowerment with feedback, and incentive system the case
study is specifically centered on examining employee retention the banking sector in
Pakistan. 316 workers from 39 of a private bank's most prestigious branches provided
information for the study. The results of a numerous regression analysis showed that,
when applied consistently and effectively, all of the previously mentioned factors—
performance appraisal, career development, job satisfaction, empowerment with
feedback, and reward system—have favourable effects on employee retention. The
findings support previous research and have significance for managers and
policymakers who want to create practises and guidelines that would boost worker
productivity and encourage employment retention in the banking industry.

17. Ramous Agyare, Ge Yuhui, Lavish Mensah, Zipporah Aidoo

In a case study of microfinance institutions in Ghana, researchers Ramous Agyare, Ge

Yuhui, Lavish Mensah, Zipporah Aidoo, and Isaac Opoku Ansah investigated the
impacts of performance reviews on workers' organizational commitment and job
satisfaction. The study employed a descriptive research approach and used
questionnaires to gather data from 200 respondents. The data was analyzed by the using
correlations and regression analysis. The results showed that fairness in the assessment
system, prospects for advancement, the definition of roles, and feedback regarding their
performance are all positively connected to and have an influence on workers' job
happiness. Additionally, factors that influence and positively connect to employee
commitment include remuneration tied to performance reviews, the identification of

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training requirements, the clarity of the aim of performance reviews, and employee
input into the creation of the assessment tools.

18. Sajuyigbe, Ademola

Sajuyigbe, Ademola's study explores the influence of performance appraisal on

employee performance within the Nigerian telecommunication industry. The research
investigates the relationship between performance appraisal practices and the
effectiveness of employees in this sector. Through a thorough analysis of existing
literature, the study aims to uncover insights into how performance appraisal systems
impact the overall performance of employees within the Nigerian telecommunication
industry. By examining this relationship, the research contributes to a better
understanding of the dynamics between performance appraisal and employee
performance in this specific context.

19. Mucai Mbugua, Esther Wangithi Waiganjo & Agnes Njeru

The research by Sajuyigbe and Ademola examines how performance reviews affect
workers' productivity in Nigeria's telecommunications sector. The study looks into the
connection between this industry's performance evaluation procedures and workers'
efficiency. The study attempts to gain insights into how performance assessment
methods affect employees' overall performance in the Nigerian telecommunications
sector by a careful investigation of the body of current literature. The research advances
knowledge of the dynamics between employee performance and performance
evaluation in this particular situation by investigating this link.

20. Saba Gulzar, Avinashi Advani, Tariq Jalees. (2017-06-30).

Performance appraisal is a process used by organizations to evaluate and assess the job
performance of their employees. The process typically involves setting performance
standards, monitoring progress, and providing feedback on performance.
Effective performance appraisal practices can have a positive impact on employee
retention. When employees feel that their performance is being evaluated fairly and
regularly, they are more likely to feel valued and motivated to stay with the
organization. Additionally, performance appraisal can help identify areas where
employees need further training or development, which can contribute to their job
satisfaction and increase their likelihood of staying with the organization.

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Research gap

While the existing research has been extensively examined the influence of
performance appraisal practices on employee retention, there remains a gap in
comprehensively exploring how the integration of personalized development plans
within performance appraisals specifically tailored to individual career aspirations
could further enhance employee retention outcomes.

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CHAPTER-3
RESEARCH DESIGN
Statement of the Problem:
Despite the significant role of performance appraisal in promoting employee retention,
organizations continue to struggle with high employee turnover rates. The problem at
Kshithija Infotech Pvt Ltd is that the organization has observed a decline in employee
retention rates despite the implementation of performance appraisal practices.
Therefore, the main research problem is to identify the impact of performance appraisal
practices on employee retention at Kshithija Infotech Pvt Ltd and to determine the
factors that contribute to this decline in employee retention despite the use of
performance appraisal practices.

Need/Importance of the Study:

Setting expectations: Performance appraisals also help to set clear opportunities for
employees. By outlining specific goals and objectives, employees have a better
understanding of what is expected of them and how their performance will be evaluated.
As employees are more inclined to stay with an organisation that gives them a clear
direction and purpose, this can increase employee retention.

Objective of Study:

1. To study the performance appraisal practices and employee retention at

Kshithija Infotech Pvt Ltd
2. To study the relationship between performance appraisal practices and
employee retention
3. To analysis impact of performance appraisal on employee retention.

Scope of Study:
Examining how performance appraisal practises might affect employee retention within
an organisation is part of the study's focus on performance appraisal practises and
employee retention.

Examining several parts of the evaluation process may be necessary to understand the
effects of performance review procedures on employee retention, such as the criteria

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used to evaluate performance, the frequency of appraisals, the quality of feedback

provided to employees, and the extent to which the results of appraisals are used to
inform decisions about career development and promotions.

Research Methodology:
Research design:
-Descriptive research

Sampling Design:
-Sampling Method: Probability sampling
-Sampling Techniques: simple random sampling
-Sampling unit (respondent): Employees of the organization
-Sample size: 105 employees

Types of data:
-Primary data: Personal interview, Survey method using questionnaire
-Secondary data: Research articles, textbooks, Magazines of organization

Statistical tool: Reliability test, Correlation and Regression.

Statistical software: Excel and SPSS software

Hypothesis Testing:
A statement that demonstrates the relationship between two or more things is called a
hypothesis. It is a precise, testable study prediction. It provides a theoretical description
of the investigation.
The study's goals are to investigate the problem area and produce a hypothesis that will
be tested in subsequent studies. The hypothesis often consists of two parts: one that
defines the prediction and the other that specifies additional potential outcomes in light
of the
Relationship between the two hypotheses
Ho1: There is no Relationship between Performance Appraisal Practices and Employee
Retention

HA1: There is a Relationship between Performance Appraisal Practices and Employee

Retention

Ho2: There is no Impact of Performance Appraisal on Employee Retention

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HA2: There is an Impact of Performance Appraisal on Employee Retention

Limitations of the Study:

1) Results may vary based on biasness of employee
2) Limited to only one company information
3) Limited Sample size, many studies have used small sample sizes, which may limit
the generalizability of their findings.

CHAPTER SCHEME:

CHAPTER 1: It provides information on the project's introduction, along with

company and industry profiles. It contains information on the promoters, the Vision and
Mission, and the Land Quality Policy. Additionally, it provides comprehensive details
about competitors, competitors' products and services, SWOC analysis, and financial
statements.

CHAPTER 2: It contains theoretical background and literature of the study.

CHAPTER 3: It has Research design concepts0like statement, need, objectives scope
of study. It gives information about hypothesis and limitation of study also.

CHAPTER 4: Analysis and Interpretation of the0study is briefly explained in this

chapter.
CHAPTER 5: It contains summary of findings, conclusions and recommendation.

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CHAPTER-4

DATA ANALYSIS & INTERPRETATION

Introduction:

This chapter provides the study's findings. Additionally, it emphasizes the four sections
of response rate, context information on respondents, performance evaluation,
employee participation, and discussions of the findings. The findings are displayed as
graphs, figures, and tables.

1. Gender
The analysis is conducted to know the different sets0of gender of the respondents.

4.1 Frequency of Respondents Gender

Gender No. of Respondent Percentage
Male 75 71%
Female 30 29%
Total 105 100%
Source: Primary Data

Graph 4.1: Respondents Gender

Gender
80% 71%

60%

40% 29%

20%

0%
Male Female

Interpretation:

As for the graph show above on the gender of the respondents that 71 percent of them
were men and 29 percent were women. The findings imply that both men and women
participated in the research.

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2. Age

The study is conducted to understand the0different age groups of respondents.

4.2 Frequency of Respondents Age

Age No. of Respondent Percentage

21-30 years 69 66%
31-40 years 19 18%
41-50 years 14 13%
Above 50 years 3 3%
Total 105 100%
Source: Primary Data

Graph 4.2: Respondents Age

Age
70% 66%

60%
50%
40%
30%
18%
20% 13%
10% 3%
0%
21-30 years 31-40 years 41-50 years Above 50 years

Interpretation:

The responses about are displayed in table 4.2 as per the study’s findings 66%
Respondents were under 21-30 years, 18% of respondents were in the 31-40 age range,
13% of the respondents were in the 41-50 years in the above 50 age range, 3% of the
respondents were included that means most of respondents were in the 21-30 age range.

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3. Education

With the help of this study, we will0get the various Education which are held by
the respondents.

4.3 Frequency of Education

Educational No. of Respondent Percentage

PUC 2 2%
Graduation 15 14%
Post-
42 40%
Graduation
Other specify 46 44%
Total 105 100%
Source: Primary Data

Graph 4.3 Respondents Education

Educational
50%
44%
45% 40%
40%
35%
30%
25%
20%
14%
15%
10%
5% 2%
0%
PUC Graduation Post Graduation Other specify

Interpretation:
According to this graph, the majority of respondents 2% have completed PUC, 14%
have completed Graduation, 40% of the people are Post graduated and 44% have
completed their Other specify.

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4. Your Status
The study is conducted to see the different sets0of Your Status of the respondents.

4.4 Frequency of Your Status

Your Status No. of Respondent Percentage

Single 41 39%
Married 64 61%
Total 105 100%
Source: Primary Data

Graph 4.4 Respondents Your Status

Your Status
70% 61%
60%
50%
39%
40%
30%
20%
10%
0%
Single Married

Interpretation:

As per this graph, 39% of the people are Single and 61% of the people are Married.

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A Study on Impact of Performance Appraisal Practices on Employee Retention at Kshithija Infotech Pvt Ltd, Bengaluru

5. Experience
The study is conducted to know the different sets0of Experience of the respondents.

4.5 Frequency of Experience

Experience No. of Respondent Percentage

0-1 years 36 34%
2-5 years 43 41%
6-10 years 21 20%
More than 10
years 5 5%
Total 105 100%

Source: Primary Data

Graph 4.3 Respondents Experience

Experience
45% 41%
40%
34%
35%
30%
25%
20%
20%
15%
10%
5%
5%
0%
0-1 years 2-5 years 6-10 years More than 10 years

Interpretation:

As per this graph, 34% of the respondents are have 0-1 year experience, 41% of the
respondents have 2-5 year experience, 20% 0f the respondents have 6-10 year
experience and 5% 0f the respondents are More than 10 year experience.

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Reliability Test:
A reliability test was conducted to assess the accuracy of the scale used in data
collection. The validity of the survey questions was evaluated through the Cronbach's
Alpha index.

Table 4.1: Reliability Test

Case Processing Summary
N %
Cases Valid
105 100.0

Excluded
0 0.0

Total 105 100.0

a. Listwise deletion based on all variables in the procedure.

Source: Primary Data

The case summary table ensures no missing data and number of respondents are 105.

Table 4.2: Reliability Analysis

Reliability Analysis

Cronbach's Alpha No of Items;

.887 29
Source: Primary Data

Interpretation:
Based on the results of the reliability test, the respondents demonstrated a clear
understanding of each question and provided accurate responses, resulting in a
Cronbach's Alpha score of 0.888.
It can be seen that the Cronbach's Alpha value of 0.888, which is higher than 0.70, so
the data is reliable for application for the statistical test.

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Correlation Analysis
In research, correlation analysis is a statistical technique utilized to assess the
relationship between two variables and measure the strength of their linear association.
Simply put, correlation analysis determines the extent to which changes in one variable
affect changes in the other.

Correlation analysis is employed to assess the strength of the relationship between two
variables. It calculates the correlation coefficient, indicating the extent to which one
variable change when the other does. Through correlation analysis, one can determine
the presence of a linear relationship between the two variables.

H01: There is no Relationship between Performance Appraisal Practices and Employee

retention.
H11: There is a Relationship between Performance Appraisal Practices and Employee
retention.

Table 4.3: Correlations

Correlations
Job Punctuali Commun Attenda Leaders Employee
Knowle ty ication nce hip retention
dge
Job Pearson Correlation 1 .784** .912** .365** .946** .528**
Knowledge
Sig. (2-tailed) .000 .000 .000 .000 .000
N 105 105 105 105 105 105
Punctuality Pearson Correlation .784** 1 .810** .294** .856** .493**
Sig. (2-tailed) .000 .000 .002 .000 .000
N 105 105 105 105 105 105
Communicat Pearson Correlation .912** .810** 1 .479** .952** .624**
ion Sig. (2-tailed) .000 .000 .000 .000 .000
N 105 105 105 105 105 105
Attendance Pearson Correlation .365** .294** .479** 1 .356** .511**
Sig. (2-tailed) .000 .002 .000 .000 .000
N 105 105 105 105 105 105
Leadership Pearson Correlation .946** .856** .952** .356** 1 .546**
Sig. (2-tailed) .000 .000 .000 .000 .000
N 105 105 105 105 105 105
Employee Pearson Correlation .528** .493** .624** .511** .546** 1
retention
Sig. (2-tailed) .000 .000 .000 .000 .000
N 105 105 105 105 105 105
**. Correlation is significant at the 0.01 level (2-tailed).
Source: Primary Data

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A Study on Impact of Performance Appraisal Practices on Employee Retention at Kshithija Infotech Pvt Ltd, Bengaluru

Interpretation:
Employee retention have a significant relationship with Job Knowledge as the P value
(0.00) is less than 0.05.

There is a significant relationship between Employee retention and Punctuality, as the

P value (0.00) is less than 0.05.

Employee retention have a significant relationship with Leadership as the P value (0.00)
which is less than 0.05

Employee retention have a significant relationship with Communication as the P value

(0.00) that is less than 0.05

Employee retention exhibits a significant relationship with Attendance, as evidenced

by the P value (0.00) being less than 0.05. Thus, we reject the null hypothesis and accept
the alternative hypothesis.

Based on the information presented in the table above, it is evident that found that
Employee retention is having moderate (0.547) positive correlation with Job
Knowledge, Moderate (0.508) positive correlation with Punctuality, Moderate (0.535)
positive correlation with Leadership, Moderate (0.526) positive correlation with
Communication and Moderate (0.560) positive correlation with Attendance.

Regression Analysis
Regression analysis is a statistical method used in modelling to understand the
relationships between a dependent variable (outcome) and one or more independent
variables (predictors). The most common form, linear regression, seeks to find a line
that best fits the data by minimizing the sum of squared differences between the
observed data and the line. This allows researchers to estimate the conditional
expectation of the Employee retention is based on specific values of the independent
variables.

Regression Analysis is used to predict the impact of independent variables on dependent

variable. It is the method able to identify the degree of impact and significant influence
of independent variables on dependent variable.

H02: There is no Impact of Performance appraisal Practices on Employee retention.

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A Study on Impact of Performance Appraisal Practices on Employee Retention at Kshithija Infotech Pvt Ltd, Bengaluru

H12: There is an Impact of Performance appraisal Practices on Employee retention.

Table 4.4: Variables Entered/Removed

Variables Entered/Removed

Model Variable Entered Variable Removed Methods

1
Job Knowledge,
Punctuality,
Leadership, Enter
Communication,
Attendance

a. Dependent Variables: Employee retention

b. All requested variable entered.

Source: Primary Data

Interpretation:

From the above table of regression, it displays that Job Knowledge, Punctuality,
Leadership, Communication and Attendance is independent variables Employee
retention. And is a Dependent Variable.

Table 4.5: Model Summary

Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate
1 .676a .457 .430 .37170
a. Predictors: (Constant), LE_MEAN, AT_MEAN, PN_MEAN, JK_MEAN,
CM_MEAN
Source: Primary Data

Interpretation:
Model summary explains through R square that, percentage of dependent variable
explained by independent variable. That means in the present study 50.9% of
Dependent variable Customer perception is explained the Job Knowledge, Punctuality,
Leadership, Communication and Attendance and Employee retention.

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Table 4.6: ANOVA of Regression Analysis

ANOVA
Sum of
Model Squares df Mean Square F Sig.
1 Regression 11.524 5 2.305 16.683 .000b
Residual 13.678 99 .138
Total 25.202 104
a. Dependent Variable: : Employee retention
b. Predictors: (Constant), LE_MEAN, AT_MEAN, PN_MEAN, JK_MEAN,
CM_MEAN
Source: Primary Data

Interpretation:
Based on the table, it is found that significant value is less than 0.05, ensuring that we
are rejecting null hypothesis and accepting alternate hypothesis. The significant result
explains that the model is good fit for regression analysis, and dependent variable is
explained by independent variables.

Table 4.6: Coefficients of regression analysis

Coefficients

Unstandardized Standardized
Coefficients Coefficients
Std.
Model B Error Beta t Sig. Result
1
(Constant) 1.3 0.34 3.825 0

Job Knowledge -0.013 0.225 -0.014 -0.06 .953 Not

Significant

Punctuality 0.116 0.144 0.117 0.807 .422 Not

Significant

Communication 0.735 0.269 0.755 2.729 .008

Significant

Attendance 0.192 0.072 0.243 2.68 .009

Significant

Leadership -0.308 0.323 -0.346 -0.955 .342 Not

Significant
a. Dependent Variable: Employee retention
Source: Primary Data

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Interpretation:
From the table we can interpret that Communication and Attendance are significantly
influencing Employee retention. But Job Knowledge, Punctuality and Leadership are
not influencing Employee retention.

Also, from above table we can interpret that which coefficient variable is influencing
more compared to another independent variable. From the table by observing
unstandardized beta coefficients values we can interpret that Communication is having
high influence than the Attendance.

This also can be represented in the form of regression model equation as follows

Employee retention = 1.300+0.735 (Communication) +0.192 (Attendance)

From the model we can interpret that one unit of increase of Employee retention is
influenced by 73.5% of Communication, 19.2% of Attendance.

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CHAPTER – 5
FINDINGS, SUGGESTION & CONCLUSION

5.1 FINDINGS

Demographic Data

 From the demographic data analysis, it is found that 66% Respondents were
under 21-30 years, 18% of respondents were in the 31-40 age range, and 13%
of respondents were in the 41-50 years and 3% of respondents were in the >50
age range, this means that the highly respondents were in the 21-30 age range.
 There are 71% of them were men and 29% were women. So, the male
employees who are more with 71%
 Only 2% have completed PUC, 14% have completed Graduation, Post
graduated employees are up to 40% and 44% have completed their Other
specify. So, responses who are Other specify are the highest with 44%
 It shows that 39% of the employees are Single and 61% of the employees are
Married. So, the employees who are married are more with 61%
 It is found that 34% of the employees are using working for your present
organization from < 1 years, 41% of the employees are using working for your
current organization from 2 to 5 years, 20%of the employees are using working
for your present organization from 6 to 10 years and 5%of the employees are
using working for your present organization from >10 year. So, the people who
are using working for your current organization 2 to 5 year are highest with 41%

Reliability Test
Cronbach's Alpha value of 0.887, which is higher than 0.70, so the data is reliable for
application for the statistical test.

Correlation Analysis
Employee retention has a strong correlation with the following performance appraisal
practices Job Knowledge, Punctuality, Leadership, Communication, Attendance
Furthermore, it is discovered that, in the respondent’s opinions, Employee retention has
a positive.

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Regression Analysis

 Model Summary
Model summary explains through R square that, percentage of dependent variable
explained by independent variable. That means in the current study 50.9% of
Dependent variable Customer perception is described by the independent variables Job
Knowledge, Punctuality, Leadership, Communication and Attendance and Employee
retention.

 ANOVA of Regression Analysis

From the ANOVA of Regression Analysis, it is found that significant value is less than
0.05, ensuring that we are rejecting null hypothesis and accepting alternate hypothesis.
The significant result explains that the model is good fit for regression analysis, and
dependent variable is explained by independent variables.

 Coefficients of regression analysis

From the regression analysis, it is found that Communication, Attendance is

significantly influencing Employee retention and also found that Communication, is
having high influence that the attendance.

Whereas, Leadership and Punctuality, Job Knowledge are not having any impact based
on the selected respondent’s opinion.

5.2 SUGGESTIONS
• Employees should be provided with autonomy in their work in instruction to
increase their retention.

• Company should focus on increasing the attendance rate and making their
employees punctual in instruction to increase their retention.

• Employees should be provided appropriate knowledge about their job in order

increase the employee retention rate in the organization.

Department of Business Administration, VVCE, Mysore 44

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5.3 CONCLUSION
According to the applied research. The study exhibited strong data reliability with a
Cronbach's Alpha value, surpassing the accepted threshold, affirming its suitability for
statistical analysis. Correlation analysis revealed a robust positive Correlation among
Employee Retention and key performance appraisal practices, namely Job Knowledge,
Punctuality, Leadership, Communication, and Attendance. The regression analysis
further underscored the models validity, demonstrating of the variance in Customer
Perception is elucidated by the independent variables: Job Knowledge, Punctuality,
Leadership, Communication, Attendance, and Employee Retention. The ANOVA
results confirmed the model's statistical significance, validating its utility in explaining
the dependent variable. Notably, Communication and Attendance significantly
influenced Employee Retention, with Communication holding higher sway than
Attendance. Conversely, Leadership, Punctuality, and Job Knowledge did not exhibit
substantial influence based on respondent opinions. In light of these findings,
recommendations include providing employees with increased autonomy, enhancing
attendance and punctuality, and focusing on job knowledge to improve retention rates
within the organization.

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A Study on Impact of Performance Appraisal Practices on Employee Retention at Kshithija Infotech Pvt Ltd, Bengaluru

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Department of Business Administration, VVCE, Mysore

A Study on Impact of Performance Appraisal Practices on Employee Retention at Kshithija Infotech Pvt Ltd, Bengaluru

ANNEXTURE

MASTER QUESTIONNAIRE

I am Manish J - 4h semester, MBA student studying at Vidyavardhaka college of

Engineering, Mysuru, doing my project on “A Study on Impact Of Performance
Appraisal Practices On Employee Retention At Kshithija Infotech Pvt Ltd, Bengaluru”.
Kindly spare your valuable time to give the information. The information will be used
only for academic purpose.

Thanking you.

PART – A

1. Name: ……………………………….… Contact:

……………………

2. Age: (a) Up to 20 years [ ] (b) 21-30 years [ ] (c) 31-40 years [ ]

(d) 41-50 years [ ] (e) Above 50 years [ ]

3. Gender: (a) Male [ ] (b) Female [ ]

4. Educational Qualification: (a) Upto SSLC [ ] (b) PUC[ ] (c) Graduation [ ]

(d) Post Graduation [ ] (e)Other specify………………

5. Your Status: (a) Single [ ] (b) Married [ ]

7. Experience (in Years) : (a)0-1 [ ] (b)2-5 [ ] (c)6-10 [ ] (d) more than 10 [ ]

PART- B

Rate the following statements based on Performance Appraisal practices and Employee
Retention in the following scales of 1 to 5

1-Strongly Disagree 2-Disagree 3-Neutral 4-Agree 5-Strongly Agree

Sl.
No Particulars 1 2 3 4 5
.
JOB KNOWLEDGE
Job knowledge as criteria enhances my contribution towards
1
efficiency.
Job knowledge shared by my supervisor helps to achieve my
2
job role
3 Job knowledge enhances the competency of my working skills
job knowledge helps to solve problems and make informed
4
decisions.

Department of Business Administration, VVCE, Mysore

A Study on Impact of Performance Appraisal Practices on Employee Retention at Kshithija Infotech Pvt Ltd, Bengaluru

Job knowledge address complex ideas and concepts

5
successfully.
PUNCTUALITY
Punctuality helps me to complete work within given time
6
period
7 Punctuality at work place helps me to get motivated.
8 I am satisfied with the Punctuality policy in the organization
9 Punctuality helps to meet organization goals
Punctuality helps to overcome the working challenges in my
10
organization.
COMMUNICATION
Communication with supervisor helped me to work
11
successfully.
Communication helps to build good relationship in the
12
organization.
The Communication policies helps me to work efficiently in
13
the organization.
The communication helps to express ideas and information to
14
others
The communication policies in the organization created
15
transparency in the working conditions
ATTENDANCE
I am Satisfied with my work environment arrangement that
16
made to be regular
17 I am satisfied with the company leave policy
18 Attendance policy motivates me to be more responsible.
I am satisfied with the attendance policy for the employee
19
return late from breaks or lunches.
LEADERSHIP
Leadership initiatives helps to support subordinates in the
20
organization.
Leadership opportunities in the organization helps to improve
21
my competency
leadership inspires me to solve the problems in the
22
organization.
Leadership motivates me put efforts in meeting the
23
organization goals.
EMPLOYEE RETENTION
I want to put my full potential in meeting the organization
24
goals
25 I am comfortable in working with my team members
Feedback policy helps me to work with organization
26
confidently.
27 I have a clear understanding of my career path here
28 The work culture making me to continue in the organization

Department of Business Administration, VVCE, Mysore

A Study on Impact of Performance Appraisal Practices on Employee Retention at Kshithija Infotech Pvt Ltd, Bengaluru

The workplace hygiene making me to continue in the

29
organization

30. Kindly share any other information You want about the Performance Appraisal
practices?

………………………………………………………………………………………………………………………..

……………………………………………………………………………………………………………………….

Signature

Department of Business Administration, VVCE, Mysore