A FINAL RESEARCH PROJECT

ON
“A Study on Performance Appraisal of Employees at Infowiz”

Submitted towards the partial fulfillment of the requirement for the degree of

BACHELOR OF BUSINESS ADMINISTRATION

BBA Batch 2013-2016

MAHARISHI MARKANDESHWAR UNIVERSITY

Submitted to :- Submitted by:-

Mr. B.R .Biradar VaibhavSaraswat

BBA 6th SEM.

ROLL NO. 1213061

 DECLARATION

I am VAIBHAV SARASWAT; hereby declare that this project titled “Performance appraisal”
is based on study conducted by me under the guidance of Miss Shardhashree this project has
not been submitted earlier for the award of any other degree/diploma to any other institute or
university.

VAIBHAV SARASWAT
 DECLARATION
Mr. B.R.Biradar; hereby declare that this project titled “Performance appraisal” is
based on study conducted by me under the guidance of Miss Shardhashree this project has not
been submitted earlier for the award of any other degree/diploma to any other institute or
university.

Mr. B.R.Biradar
 CERTIFICATE

Certifiedthatthesummertrainingreportentitled “Study of Performance Appraisal of

Employees at Infowiz”donebyMs. VAIBHAV SARASWAT during the period of her
study under my guidance and that the training report has notpreviously formedthe basis for the
award of any degree, diploma, associate, ship fellowship or similar other titles and that it is
independent work done byVAIBHAV SARASWAT

MR.B.R.Biradar
 ACKNOWLEDGEMENT

Endeavours have borne fruit and as I prepare to get ahead I stop for a moment in the track to
acknowledge my sincere gratitude for the assistance, efforts and patronage I have received in
course of completing the project report.

I would gracefully acknowledge the inspiration, encouragement and valuable suggestions that I
had got from my project guide Miss Shardhashree for completing our research.

My overriding debt is to my parents who provided me with the time and financial assistance and
inspiration needed to prepare this project report in congenial manner. Last but not the least I
would like to thank the almighty that gave me the courage and endurance to complete the
endeavour.

VAIBHAV SARASWAT
 PREFACE

Managing human resource in today’s environment is becoming more and more complex as well
as important. Recognition of people as a valuable resource in the organisation has led to
increased trend in employee maintenance, job security, etc.

My research project deals with “Performance appraisal “as carried out at “Infowiz”. In this
report, I have studied and evaluated the performance appraisal process as it is carried out in the
company.

The first section of my report deals with the introduction of my topic and the detailed company
profile. It includes the company’s activities and operations, organisational structure, etc. This
section attempts to give detailed information about the company and the nature of its
functioning.

The second section deals with the performance appraisal. In this section, I have given brief
conceptual explanation to performance appraisal. It contains the definition, process and
significance of performance appraisal.

In the third section of my report, I have conducted a research study to evaluate the process of
performance appraisal at Infowiz. This section also contains my findings, conclusions,
suggestions and feedback.

The fourth and final section of this report consists of extra information that I related to the main
contents of the report. These annexure include some graphs and diagrams relating to the
company, graphs relating to the research study and important documents on which the project is
based.
 List of Contents

CHAPTER TITLE NAME PAGE No.

DECLARATION 1

CERTIFICATE 2

ACKNOWLEDGEMENT 3

PREFACE 4

1 INTRODUCTION 5-20

2 LITERATURE REVIEW 21-24

3 RESEARCH METHODOLOGY 25-28

OBJECTIVE OF THE STUDY 29

RESEARCH DESIGN 30

DATA COLLECTION 31-34

SCOPE OF THE STUDY 35

SAMPLING 36-40

LIMITATIONS OF THE STUDY 41-42

4 ANALYSIS & INTERPRETATION 43-47

5 SUGGESTIONS & CONCLUSION 48-50

BIBLIOGRAPHY 51

QUESTIONARE 52-54
 CHAPTER-1
INTRODUCTION
 Introduction to HR

Human resource management has been traditionally viewed as an inherent part of management
which is concerned with the human resource of an organisation.

Human Resource Management is an art of managing people at work in such a manner

that they give their best to the organization. In simple words, human resource
management refers to the quantitative aspects of employees working in an organization.

Human Resource Management is also a management function concerned with hiring, motivating
and maintaining people in an organization. It focuses on people in organization.

Organizations are not mere bricks, mortar, machineries or inventories. They are people who
manages organizations.HRM involves the application of management functions and principles.

The functions and principles are applied to acquisitioning, developing, maintain, and
remunerating employees in organizations.

Decisions relating to employees must be integrated. Decision on different aspect of employees

must be consistent with other human resource decisions. Decision made must influence the
effectiveness of organization. Effectiveness of an organization must result in betterment of
services to customers in the form of high-quality product supplied at reasonable costs.

HRM function is not confined to business establishment only. They are applicable to non-
business organizations, too such as education, health care, recreation etc. The scope of HRM is
indeed vast. All major activities in the working life of his or her entry into an organization until
he or she leaves-come under the previews of HRM specifically, the activities included are HR
planning, job analysis, recruitment and selection, orientation and placement, training and
development, performance appraisal and job evaluation, employee and executive remuneration,
motivation and communication, welfare, safety and health, industrial relations and the like. HRM
is a broad concept. Personnel management and human resource development is a part of HRM.
Human resource management plays an important role in the development process of
modern economy. In fact it is said that all the development comes from the human mind.

“ Human Resource Management is a process of producing development, maintaining and

controlling human resources for effective achievement of organization goals.”

According to Edwin B. Flippo,”Human Resource Management is the planning, organising,

directing and controlling of the procurement, development, compensation, integration,
maintenance and separation of human resources to the end that individual and societal objectives
are accomplished.”

Functions of human resource management:

Following are the various functions of Human Resource Management that are essential for the
effective functioning of the organisation:

Recruitment
Selection
Induction
Performance appraisal
Training and Development
Recruitment

The process of recruitment begins after manpower requirements are determined in terms of
quality through job analysis and quantity through forecasting and planning.

Selection

The selection is the process of ascertaining whether or not candidates possess the requisite
qualifications, training and experience required.

Induction

Induction is the technique by which a new employee is rehabilitated into the

changedSurroundings and introduced to the practices, policies and purposes of the organization.
 Introduction to Performance Appraisal

Once the employee has been selected, trained and motivated, he is then appraised for his
performance. Performance Appraisal is the step where the Management finds out how effective it
has been at hiring and placing employees. If any problems are identified, steps are taken to
communicate with the employee and remedy them.

Performance appraisal, also referred to as a performance review, performance evaluation or

employee appraisal is a method by which the job performance of an employee is documented
and evaluated. Performance appraisals are employed to determine who needs what training, and
who will be promoted, demoted, retained or fired

“Performance Appraisal is a process of evaluating an employee’s performance in terms of its

requirements. “

“Performance Appraisal can also be defined as the process of evaluating the performance and
qualifications of the employees in terms of the requirements of the job for which he is employed,
for purposes of administration including placement, selection for promotions, providing financial
rewards and other actions which require differential treatment among the members of a group as
distinguished from actions affecting all members equally.”

According to Flippo, “Performance appraisal is the systematic, periodic and impartial rating of
an employee’s excellence in matters pertaining to his present job and his potential for better job.”

Characteristics of performance appraisal

Performance appraisal is a process.

It is the systematic examination of the strength and weakness of an employee in terms of his job.

It is scientific and objective study. Formal procedures are used in the study.

It is an ongoing and continuous process wherein the evaluations are arranged periodically
according to a definite plan.
The main purpose of performance appraisal is to secure information necessary for making
objective and correct decision for an employee.

Importance and Purpose

Performance Appraisal has been considered as the most significant an indispensable tool for an
organization, for an organization, for the information it provides is highly useful in making
decisions regarding various personnel aspects such as promotion and merit increases.
Performance measures also link information gathering and decision making processes which
provide a basis for judging the effectiveness of personnel sub-divisions such as recruiting,
selection, training and compensation. Accurate information plays a vital role in the organization
as a whole. They help in finding out the weaknesses in the primary areas.

Formal Performance Appraisal plans are designed to meet three needs, one of the organization
and the other two of the individual namely:

They provide systematic judgments to back up salary increases, transfers, demotions or

terminations.

They are the means of telling a subordinate how he is doing and suggesting needed changes in
his behavior, attitudes, skills or job knowledge. They let him know where he stands with the
Boss.

Superior uses them as a base for coaching and counseling the individual.

On the basis of merit rating or appraisal procedures, the main objectives of Employee Appraisal
are: To enable an organization to maintain an inventory of the number and quality of all
managers and to identify and meet their training needs and aspirations.

To determine increment rewards and to provide reliable index for promotions and transfers to
positions of greater responsibility.

To suggest ways of improving the employee s performance when he is not found to be up to the mark
during the review period.To identify training and development needs and to evaluate effectiveness of
training and development programmes. To plan career development, human resource planning based
potentials.
 COMPANY’S PROFILE

INFOWIZ

INFOWIZ is leading strategic IT Company offering integrated IT solution. INFOWIZ is having

rich experience managing global clients across various business verticals and align IT strategies
to achieve business goals. The various accreditations that we achieved for every service, we offer
reflect our commitment towards the quality assurance.

INFOWIZ is a 7 years young organization with an ISO Certification & a member of

Confederation of Indian Industry (CII membership number – N4654P). We also provide the
off shore companies of US, UK, France, Ireland, Canada and Australia with quality and timely
Web and SEO services.

INFOWIZ is an organization which is established in the field of Web Development (PHP

& .NET), JAVA (Core as well as Advance), I-phone & Android Applications, Embedded
systems (AVR, PIC & ARM), ROBOTICS and Networking (MCSE, CCNA & RHSE),
Mechanical Engineering (CRDI, CATIA, VVT, VCR, ABS, CRUISE CONTROL, PRO-E,
SOLID WORKS).Civil Engineering (AUTO CAD, STAAD-PRO, REVIT), Finance, HR-
Marketing.

Our skilled team of professionals make sure that the product is developed as per the customer’s
needs and keeping the customer informed about the development of their project from time to
time. We do not only emphasize on formulating an attractive solution to our clients but also
believe in providing a workable solution. INFOWIZ offers research based Search Engine
Marketing products that help achieve greater insights to customer’s online business. Our
Research & Development arm offers SEO tools for SEM professionals.

INFOWIZ also provides Technical Support & Consultancy to Software Companies like JIA
Group, New Zealand, Sagi tech solutions Panchkula, Jarc info tech Mohali, Info net Solution
Delhi, web it solutions, Speed info rays etc.
“A Ship is as good as the crew who sail her.”

Our Technical team of professionals handing, designing & delivering of projects has a strong
presence in the North India & the US. Our engineers are already working on the latest
technologies like I-Phone & Android Applications, Robotics, VLSI-VHDL, Embedded
System, Networking and Cloud computing.

1) Dr. Seema (Managing Director)

She is the backbone of INFOWIZ and a woman with more than 9 year rich practical experience
who believes in taking up new ventures and projects.

2) Mr. Rajeev Nayya (General Manager)

A man who strongly feel that “Nothing is Impossible”. A very committed team leader who has
been professionally attached with Multinational companies for more than 18 years and has lead
the marketing teams in all states of North India.

3) Mr. Deepak Kashyap (Technical Manager & Branch Manager)

A man who strongly feels “Team work leads to success”. He strives to achieve his goals with full
dedication and devotion towards the organization. He has more than 7 years experience in IT
sector.

4) Ms. Urvashi (Dean Academics)

A woman who believes “Challenges are what make life interesting and overcoming them is what
makes life meaningful.” She has more than 10 years experience in business development.

5) Er. Vishal Goyal (Head & Technical Advisor at US Branch)

More than 10 years industrial experience in US and smooth handling of the entire US business.
 Infowiz Company Appraisal System

A detailed discussion with HR head Mrs. Urvashi Mehta of Infowiz Company, gave us the
insight in the performance appraisal system followed in the company. The appraisal model
which is followed on annual basis starting from the month of April till March has been extremely
effective for the employees of Infowiz Company.
Half yearly appraisal system was started a year ago. This activity was started keeping in mind the
dynamic behavior of the industry. With a half yearly appraisal system, the employee gets
feedback twice a year, which gives him/her a chance to re-look at his/her approach of working.
Necessary steps are also undertaken for employees who deviate from their goals. They have
introduced a comprehensive system of quarterly appraisals’ where an employee selects his/her
own goals or Key Result Area (KRAs) every quarter and him/her self assesses his/her own
performance against these parameters. At Spice jet while formally the process is annual, for
several of the frontline employees, there are performance related quarterly payouts designed to
reward them with incentives for their performance. This has resulted in quarterly assessments
which are aligned overall to annual KRAs.
Infowiz Company has a midterm review for all those who have been performers, thereby
creating an expectation amongst the employees of an increase in salary twice a year if they
perform well. They used to have annual appraisals earlier, but then they felt that the incentives
are not enough to motivation the sales department, which generates major revenues or the
organization.
They do give monetary increments and designation hikes, according to the performance. If the
employee deserves both, they give him/her both the advantages otherwise at least one of them.
Designation hikes are given annually. These are proportional to effort of the individual, team and
the department. Designation changes are given keeping in mind the immense responsibility one
has to shoulder in a high rank. Monetary increments are primarily incentives that are given either
in cash or kind for example they give them travel package within India or outside. Also, they
have an accumulating incentive scheme in which employees can accumulate incentives and get
them annually with interest.
Benefits of Performance Appraisals
Measures an employee’s performance.

Helps in clarifying, defining, redefining priorities and objectives.

Motivates the employee through achievement and feedback.

Facilitates assessment and agreement of training needs.

Helps in identification of personal strengths and weaknesses.

Plays an important role in Personal career and succession planning.

Clarifies team roles and facilitates team building.

Plays major role in organizational training needs assessment and analysis.

Improves understanding and relationship between the employee and the reporting manager and
also helps in resolving confusions and misunderstandings.

Plays an important tool for communicating the organization’s philosophies, values, aims,
strategies, priorities, etc among its employees.

Helps in counseling and feedback.

 Performance Appraisal Method:
Traditional and Modern Methods

Each method of performance appraisal has its strengths and weaknesses may be suitable for one
organisation and non-suitable for another one. As such, there is no single appraisal method
accepted and used by all organizations to measure their employees’ performance.

All the methods of appraisal devised so far have been classified differently by different authors.
While DeCenzo and Robbins’^ have classified appraisal methods into three categories: absolute
methods, relative methods and objective methods; Aswathappa has classified these into two
categories past-oriented and future-oriented.

Michael R Carrel et. Al. have classified all appraisal methods into as many as six categories:
rating scales, comparative methods, critical incidents, 6ssay, MBO and combination methods.
Rock and Levis” have classified the methods into two broad categories: narrow interpretation
and broad interpretation. Beatty and Schneider have categorised various methods of appraisal
into four groups: comparative methods, absolute methods, goal setting, and direct indices.

A more widely used classification of appraisal methods into two categories, viz., traditional
methods and modem methods, is given by Strauss and Sayles”. While traditional methods lay
emphasis on the rating of the individual’s personality traits, such as initiative, dependability,
drive creativity, integrity, intelligence, leadership potential, etc.; the modem methods, on the
other hand, place more emphasis on the evaluation of work results, i.e., job achievements than
the personal traits! Modem methods tend to be more objective and worthwhile. The various
methods included in each of the two categories are listed in Table 28.4.
In the discussion that follows, each method under both categories will be described briefly.

Traditional Methods
Ranking Method:

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

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

However, the greatest limitations of this appraisal method are that

(i) It does not tell that how much better or worse one is than another,

(ii) The task of ranking individuals is difficult when a large number of employees are rated.
(iii) It is very difficult to compare one individual with others having varying behavioural traits.
To remedy these defects, the paired comparison method of performance appraisal has been
evolved.

Paired Comparison:

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

The number of possible pairs for a given number of employees is ascertained by the
following formula:

N (N-1)/2

Where N = the total number of employees to be evaluated. Let this be exemplified with an
imaginary example.

If the following five teachers have to be evaluated by the Vice Chanceller of a University:

(K), Mohapatra (M Raul (R), Venkat (V), and Barman (B), the above formula gives 5 (5 -1) / 2
or 10 pairs.

Thus, the pairs so ascertained give the maximum possible permutations and combinations. The
number of times a worker is considered better makes his/her score. Such scores are determined
for each worker and he/she is ranked according to his/her score. One obvious disadvantage of
this method is that the method can become unwieldy when large numbers of employees are being
compared.

Grading Method

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

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

Forced Distribution Method

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

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

Forced-Choice Method

The forced-choice method is developed by J. P. Guilford. It contains a series of groups of

statements, and rater rates how effectively a statement describes each individual being evaluated.
Common method of forced-choice method contains two statements, both positive and negative.
Examples of positive statements are:

1. Gives good and clear instructions to the subordinates.

2. Can be depended upon to complete any job assigned.

A pair of negative statements may be as follows:

1. Makes promises beyond his limit to keep these.

2. Inclines to favour some employees.

Each statement carries a score or weight, which is not made known to the rater. The human
resource section does rating for all sets of statements— both positive and negative. The final
rating is done on the basis of all sets of statements. Thus, employee rating in this manner makes
the method more objective. The only problem associated with this method is that the actual
constructing of several evaluative statements also called ‘forced-choice scales’, takes a lot of
time and effort.

Check-List Method

The basic purpose of utilizing check-list method is to ease the evaluation burden upon the rater.
In this method, a series of statements, i.e., questions with their answers in ‘yes’ or ‘no’ are
prepared by the HR department (see Figure 28-2). The check-list is, then, presented to the rater
to tick appropriate answers relevant to the appraise. Each question carries a weight-age in
relationship to their importance.
When the check-list is completed, it is sent to the HR department to prepare the final scores for
all appraises based on all questions. While preparing questions an attempt is made to determine
the degree of consistency of the rater by asking the same question twice but in a different manner
(see, numbers 3 and 6 in Figure 28-2).

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

Critical Incidents Method

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

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

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

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

Graphic Rating Scale Method

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

Essay Method

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

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

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

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

The review process involves the following activities

(a) Identify areas of inter-rater disagreement.

(b) Help the group arrive at a consensus.

Rating Errors in Performance Appraisals

Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as
'rating errors'. These errors can seriously affect assessment results. Some of the most common
rating errors are: -

Leniency or severity: - Leniency or severity on the part of the rater makes the assessment
subjective. Subjective assessment defeats the very purpose of performance appraisal. Ratings are
lenient for the following reasons:

a) The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will
reflect poorly on his or her own worthiness.

b) He/She may feel that a derogatory rating will be revealed to the rate to detriment the
relations between the rater and the ratee.

c) He/She may rate leniently in order to win promotions for the subordinates and therefore,
indirectly increase his/her hold over him.

Central tendency: - This occurs when employees are incorrectly rated near the average or
middle of the scale. The attitude of the rater is to play safe. This safe playing attitude stems from
certain doubts and anxieties, which the raters have been assessing the rates.
Halo error: - A halo error takes place when one aspect of an individual's performance
influences the evaluation of the entire performance of the individual. The halo error occurs when
an employee who works late constantly might be rated high on productivity and quality of output
as well ax on motivation. Similarly, an attractive or popular personality might be given a high
overall rating. Rating employees separately on each of the performance measures and
encouraging raters to guard against the halo effect are the two ways to reduce the halo effect.

Primacy and Regency effects: - The rater's rating is heavily influenced either by behavior
exhibited by the ratee during his early stage of the review period (primacy) or by the outcomes,
or behavior exhibited by the ratee near the end of the review period (regency).

Performance dimension order: - Two or more dimensions on a performance instrument

follow each other and both describe or rotate to a similar quality. The rater rates the first
dimensions accurately and then rates the second dimension to the first because of the proximity.
If the dimensions had been arranged in a significantly different order, the ratings might have
been different.
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MySQL, SQL, ORACLE

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CRDi Technology
 CHAPTER-2

REVIEW OF LITERATURE
ReviewofLiterature

The following literature review was compiled from magazine articles, journals, published books,
and written standards found at the Learning Resource Center of the National Emergency
Training Center, Emmetsburg, MD and the library of the South Trail Fire Department. The
purpose of this literature review is to establish a foundation based in theory for this study. The
findings of the literature review examined different aspects of performance appraisals. Some of
the goals and objectives were looked at as well as the advantages and disadvantages of
performance appraisal systems.

Performance appraisals have played a part in the fire service. Many departments nationwide have
used performance appraisals, although the type of appraisal used has varied. Most of the
literature suggests that performance appraisals are important in some form to fire service
organizations. “Performance appraisals are management tools that may be used to direct
and control employee behavior, distribute organizational rewards, improve employee work
performance, or develop employee capabilities” (Tompkins, 1995, p.250). It is clear from 12

Stephen (1994): Reviewing the literature that when a proper system is in place, a performance
appraisal can assist an organization in controlling employees. The literature suggests that
performance appraisals should have clear goals set forth for its use. In his book, “Essentials of
Organizational Behavior”, Stephen P.Robbins (1994) states, “Performance appraisals serve a
number of purposes in organizations. First, management uses appraisals for general personnel
decisions such as promotions, rewards, transfers, and terminations. Second, appraisals identify
training and development needs, not only for individual employees, but also the organization as a
whole.
Third, performance appraisals can be used to validate selection and development programs.
Baches (1988): states, “the sole intent of every performance appraisal system should be to
improve performance, to provide feedback on quality of performance and then review progress
on the desired improvement of performance” (p.204). Other authors have stated that in general,
conducting formal evaluations is one way of laying down a line of communications between
employees and supervisors.In his article Performance Appraisal-Lets Quit Appraising and Begin
Reviewing, Baches (1988) states, “the sole intent of every performance appraisal system should
be to improve performance, to provide feedback on quality of performance and then review
progress on the desired improvement of performance” (p.204). Other authors have stated that in
general, conducting formal evaluations is one way of laying down a line of communications.
This setting of goals and objectives is important because employees may not understand that
their current behavior is not producing desired results. In establishing goals with employees it is
important to remember that the goals must be obtainable by the employee. “The performance
appraisal can be the most powerful tool a manager has to enhance a subordinate’s productivity.

Maddux (1987) :Goals and objectives are methods by which job expectations can be measured.
“Managers must be able to clearly explain the differences between goals and standards to their
employees so that both parties know how they will be used during the appraisal process”
(Maddux, 1987, p.169).

“Goals can describe: (1) conditions that will exist at the end of a period, (2) the time frame
required for the desired results and (3) the resources required achieving the results. Goals should
be established with employee participation and designed to reflect their abilities and
training”(Maddux, 1987, p.170).
 CHAPTER-3

RESEARCH METHODOLOGY

.
Objective of the Study

To carry out the study at Infowiz Company, we framed the following objectives

1. Identification of the technique of performance appraisal followed in InfowizCompany .

2. Employee attitude towards the present appraisal system.

3. Review of the current appraisal system in order to

1. Enhance productivity

2. Attain global standards

4. To provide suggestions & recommendations from the study conducted.

Research Methodology: Research is a scientific and systematic search for pertinent

information on a specific topic. In fact, research is an art of scientific investigation.

Process of Performance Appraisal

The process of performance appraisal:

1. Establishing performance standards

2. Communicating the Standards

3. Measuring Performance

4. Comparing the actual with the standards

5. Discussing the appraisal

6. Taking Corrective Action

 Research Design
Research design refers to the “framework or plan for a study that guides the collection and
analysis of data”. A research design calls for developing the most efficient plan of gathering the
needed information. The design of a research study is based on the purpose of the study. A
research design is the specification of methods and procedures for acquiring the information
needed. It is the overall pattern or framework of the project that stipulates what information is to
be collected from which source and by what procedures. A typical research design of a company
basically tries to resolve the following issues:

Determining Data Collection Design

Determining Data Methods
Determining Data Sources
Determining Primary Data Collection Methods
Developing Questionnaire
Determining Sampling Plan

Types of Research Design

• Explorative Research Design:

Explorative studies are undertaken with a view to know more about the problem. These
studies help in a proper definition of the problem and development of specific hypothesis is
to be tested later by more conclusive research designs. Its basic purpose is to identify the
factors underlying a problem and to determine which one of them need to be further
researched by using rigorous conclusive research designs.
• Conclusive Research Design: Conclusive Research Studies are more formal in
nature and are conducted with a view to eliciting more precise information for purpose of
making marketing decisions.

For carrying out my research work I would follow Exploratory cum Descriptive
research design.
Sampling:

An integral component of a research design is the sampling plan. Specifically, it addresses three
questions

Whom to survey (The Sample Unit)

How many to Survey (The Sample Size)
How to select them (The Sampling Procedure)

Making a census study of the whole universe will be impossible on the account of limitations of
time. Hence sampling becomes inevitable. A sample is only a portion of the total employee
strength. According to Yule, a famous statistician, the object of sampling is to get maximum
information about the parent population with minimum effort.

Methods of Sampling

Probability sampling:
Probability Sampling is also known as random sampling or chance sampling. Under this
sampling design every individual in the organization has an equal chance, or probability,
of being chosen as a sample. This implies that the section of sample items is independent
of the persons making the study that is , the sampling operation is controlled objectively
so that the items will be chosen strictly at random.

Non Probability Sampling:

Non Probability Sampling is also known as deliberate sampling, purposeful and
judgmental sampling. Non-Probability Sampling is that which does not provide every
individual in the Organization with a known chance of being included in the sample.

The Study is based on Probability Sampling.

Data Collection Technique

Collection of data is the first step in statistics. The data collection process follows the
formulation for research design including the sample plan. The data can be secondary or primary.

Collection of Primary Data during the course of the study or research can be through
observations or through direct communication with respondents on one form or another or
through personal interviews. I have collected primary data by the means of a Questionnaire. The
Questionnaire was formulated keeping in mind the objectives of the research study.

Secondary data means data that is already available i.e., they refer to data, which has already
been collected and analyzed by someone else. When a secondary data is used, the researcher has
to look into various sources from where he can obtain data. This includes information from
various books, periodicals, magazines etc.

The Study is primarily based on the Primary data Collected through Questionnaire from
Infowiz Company Employees.

Sampling Design
Convenience Sampling, as the name implies, is based on the convenience of the researcher who
is to select a sample. Respondents in the sample are included in it merely on account of their
being available on the spot where the survey was in progress.

SCOPE OF STUDY
The research was carried out to define how the IT industry should evaluate the performance of its
employees and which factors are affecting its employee’s performance. A proper procedure is to
be followed to evaluate the performance and this evaluation is further considered to take
promotion and demotion decisions. For conducting the study help of certain tools were taken
such as interviews, filling up of questionnaire, group discussion and also by observing the
employees of Infowiz. The information so collected is used by the company for taking
organisational decisions.
Limitations of study

The following are the limitations faced by me during the course of the study:

The sample consisted only of employees in the day shift. Employees of the night shift were not
considered for the purpose of study.

There is no concrete basis to prove the response given is a true measure of the opinion of all the
employees as a whole.

Convenient sampling was used as the mode of conducting the research.

The questionnaire contained mostly multiple-choice questions; therefore many respondents may
not have given a proper thought before answering the questions.

The response of the respondents may not be accurate thinking that the management might misuse
the data.

Sensitive company information cannot be displayed in the project report.

 CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

Q.1 Awareness of technique in Performance Appraisal

Options No. of Responses

Yes 36

No 14

Awareness of technique of Performance

Appraisal
28%

Yes
No

72%

Interpretation-

From the above pie chart we conclude that maximum employees are aware of their performance
appraisal technique (i.e 72%) and the employees not aware of it is minimum (i.e 28%)
Q.2Empoyees opinion as to the Appraisal System

Options No. of Responses

Fully Satisfied 12

Satisfied 22

Can’t Say 15

Dissatisfied 1

Employees Opinion as to the present

Appraisal System
24
30 2

Fully Satisfied
Satisfied
Can't say
Dissatisfied

44

Interpretation-From the above pie chart we conclude that maximum employees are satisfied
with the present appraisal system (i.e. 44%) and minimum (i.e. 2%) are dissatisfied.
Q.3Employees perception as to the frequency of appraisal.

Options No. of Responses

Once During The 1

Service Period

Continuous 46

Never 0

Can’t Say 3

Employees perception as to the frequency of

appraisal
2%
6%

Once during the service period

Continuous
Never
Can't Say

92%

Interpretation-From the above pie chart we find that the maximum (i.e 92%) of the employees
think that the frequency of appraisal must be continuous whereas minimum (i.e 0%) none of the
employees feel that Infowiz Company should not appraise.
Q.4If continuous appraisal – what should be the gap between two appraisal period.

Options No. of Responses

Quarterly 10

Half Yearly 22

Yearly 18

20%
36%

Quaterly
Half Yearly
Yearly

44%

Interpretation-From the above pie chart we conclude that maximum (i.e 44%) of the employees
want to consider performance appraisal half yearly whereas minimum (i.e 20%) of them want it
quarterly.
Q5- How Performance Appraisal affects the productivity of the employees

Motivated Indifferent Demotivated

+ Feedback

38 12 -

- Feedback

12 10 28

Neutral 24 21 5

Interpretation-

• From the above chart we conclude that the affect of performance appraisal with a
positive feedback and motivated results lead to maximum productivity of employees(i.e
76%) whereas none of the employees are demotivated.

• Giving negative feedback with demotivating results leads to minimum productivity of

employees

(i.e 56%) whereas minimum number of employees would be indifferent towards it.

• Giving a neutral feedback with motivating results leads to average productivity of

employees (i.e 48%) whereas only a few lead to low productivity with demotivating
results (i.e 10%)
Q6-Who should do the appraisal.

Options No. of Responses

Superior 12

Peer 0

Subordinate 0

Self Appraisal 4

Consultant 2

All of the above 24

Superior + Peer 8

Who should do the Appraisal ?

16% 24%

Superior
Peer
Subordinate
Self Appraisal
Consultant
8% All of the above
Superior +Peer

4%
48%

Interpretation-From the above pie chart we conclude that the maximum employees (i.e 24%)
want to get the appraisal through superior, self appraisal, consultant. Whereas none of them want
to get it done from their peers and subordinates.

Q.7Does appraisal help in polishing skills and performance area.

Options No. of Responses

Yes 37

No 5

Somewhat 8

Does Appraisal help in polishing skills and

performance area ?
16%

10%
Yes
No
Somewhat

74%

Interpretation-If the process of appraisal does not lead to the improvement of the skills and
proficiency of the employees, the very purpose of appraisal becomes illogical. In the survey
conducted it was observed that nearly 74 % of the respondents agree that Performance Appraisal
does leads to polishing the skills of the employees. Nearly 10 % of the respondents view that it
does not serve this purpose and around 16 % were not able to respond as to whether it serve any
such purposes or not.
Q8. Does personal bias creeps in while appraising an employee.

Options No. of Responses

Yes 41

No 9

Does personal bias creeps -in while apprais-

ing an Employee
0.82000000000000
1

Yes
No

18%

Interpretation-In the process of appraising, both the parties are human being, that is, the one
who is being apprised and the other who is appraising. Thus, there bound to be subjectivity
involved, be it an objective way of appraising. Thus, when asked from among the sample size of
50 respondents, as huge as 82 % respondents that personal bias do creep in while appraising an
individual. Hence, it is inevitable to say that personal likings do not come in the process of
appraisal. It is the extent to which the appraiser manages it so that it does not become very partial
and bias.

Q9. If given a chance would employees like to review the current appraisal.
 Options No. of Responses

Yes 16

No 22

Can’t Say 12

If given a chance would Employees like to

review the current Appraisal technique
24%
32%

Yes
No
Can't Say

44%

Interpretation-From the above pie chart we conclude that the maximum employees (i.e 32%) do
not want to review the performance appraisal system whereas minimum (i.e 24%) can’t comment
about the same.

Q10 Appropriate method of conducting the performance appraisal.

 Options No. of Responses

Ranking Method 6

Paired Comparison 0

Critical Incidents 3

MBO 10

Assessment Centre 2

360 degree 29

Appropriate method of conducting the

Performance Appraisal

12% 6%
Ranking Method
Paired Comparison Method
Critical Incidents
MBO
Assesment Centre
20% 360 degree
58%

4%

Interpretation-From the above pie chart we conclude that the maximum (i.e 58%) of the
employees prefer the 360 degree technique of performance appraisal whereas the minimum (i.e
0%) want paired comparison technique.
Q11- Does performance appraisal leads to identification of hidden potential.
 Options No. of Responses

Yes 48

No 2

Does Performance Appraisal leads to identi-

fication of hidden potential

4%

Yes
No

96%

Interpretation-From the above pie chart we interpret that maximum (i.e 96%) of the employees
feel that performance appraisal leads to identification of hidden potential whereas minimum (i.e
4%) disagree with the same.
 CHAPTER-5

SUGGESTIONS AND CONCLUSION

 Suggestions and Conclusion

After having analyzed the data, it was observed that practically there was no appraisal in the
organization. To be an effective tool, it has to be on the continuous basis. This is the thing that
has been mentioned time and again in the report, as, in the absence of continuity, it becomes a
redundant exercise. Before actually deciding drafting what should be the kind of appraisal the
following things should be taken care of:

1. The very concept of performance appraisal should be marketed throughout the organization.
Unless this is done, people would not accept it, be it how important to the organization.

2. To market such a concept, it should not start at bottom, instead it should be started by the
initiative of the top management. This would help in percolating down the concept to the
advantage of all, which includes the top management as well as those below them. This
means that the top management has to take a welcoming and positive approach towards the
change that is intended to be brought.

3. Further, at the time of confirmation also, the appraisal form should not lead to duplication
of any information. Instead, detailed appraisal of the employee’s work must be done –
which must incorporates both the work related as well as the other personal attributes that
are important for work performance.

4. It should be noted that the appraisal form for each job position should be different as each
job has different knowledge and skill requirements. There should not be a common
appraisal form for every job position in the organization.

5. The job and role expected from the employees should be decided well in advance and that
too with the consensus with them.

6. A neutral panel of people should do the appraisal and to avoid subjectivity to a marked
extent, objective methods should be employed having quantifiable data.

7. The time period for conducting the appraisal should be revised, so that the exercise
becomes a continuous phenomenon.
8. Transparency into the system should be ensured through the discussion about the
employee’s performance with the employee concerned and trying to find out the grey areas
so that training can be implemented to improve on that.

Ideally in the present day scenario, appraisal should be done, taking the views of all the
concerned parties who have some bearing on the employee. But, since a change in the
system is required, it cannot be a drastic one. It ought to be gradual and a change in the
mindset of both the employees and the head is required.
 Bibliography

# Baird,L.S., Beatty , R.W., and Schneier, C.E.(1982). Performance Appraisal Sourcebook

Amherst , Mass.: Human Resource Development
# Bernardin. H.J and M.R. Buckley 1981. Academy of management review
# Bernardin. H.J. and Walter C.S. (1977).Effects of rater training and diary keeping on
psychometric error in rating. Journal ofapplied psychology

SITES:
www.performanceappraisal.com
www.hr.com
www.successfactor.com
 ANNNEXURE

1 Should the appraisal process be:

a) Once during the service period b) Continuous

c) Never d) Can’t Say

2. What in your opinion should be the time period of conducting continuous Appraisal?

a) Quarterly b) Half Yearly c) Yearly

Any specific reason………………………………

3. Does Performance Appraisal helps in improving the productivity of the employees?

Motivated Indifferent Demotivated

+ Feedback

- Feedback

Neutral

4. Who in your opinion should appraise the employee?

a) Superior b) Peer

c) Subordinates d) Self Appraisal

e) Consultant f) All of the above

5. Does the appraisal system helps in polishing the skills or performance area?
a) Yes b) No c) Somewhat

6. Do you think personal bias creeps in while appraising an individual?

 a) Yes b) No

7. If given a chance or an opportunity would you like that the current appraisal procedure
should be reviewed?

a) Yes b) No c) Can’t Say

8. What according to you should be the appropriate method for conducting performance
appraisal?

a) Rating the employee on number of traits along with the range of performance for each
by the supervisor.

b) For every trait, each subordinate is paired with and compared to every other
Subordinate.

c) Reviewing employees on the basis of identified specific examples of good Or poor

performance.

d) Setting specific measurable goals with each employee and periodically reviewing the
progress made.

e) Reviewing performance through case studies, presentations, role playing, etc. for
future performance.

f) Receiving feedback from people whose views are considered helpful and relevant
including the appraise himself.

9. Does Performance Appraisal leads to identification of hidden potential of the employees?

a) Yes b) No

10. Suggestions and views…………………………………...............................

…………………………………………………………

…………………………………………………………

…………………………………………………………
Thank you.