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A STUDY OF PERFORMANCE APPRAISAL SYSTEM AT PHOENIX

MOTORS PVT.LTD. A HERO MOTOCORP DEALER, HYDERABAD

J. SRIVANI 1 G. RADHA KRISHNA MURTHY

2 Dr. V MURALI KRISHNA

3

1 Assistant Professor, Audisankara college of Engg. & Technology, Gudur, AP Assistant Professor,

2 Audisankara college of Engg. & Technology, Gudur, AP

3 Assistant Professor, Sreenivasa Institute of Technology and Management Studies, Chittoor.AP

ABSTRACT

Performance Management system has become a recognized significant vehicle for improving

performance and productivity of both employees and organizations. “Performance appraisal is a

method of evaluating the behavior of employees in the work Place, it includes both qualitative and

quantitative aspects of job performance that indicates how an individual is fulfilling the job demands

and it is always in terms of results”. Under performance appraisal not only the performance of an

employee but also his potential for development an employee is evaluated. Many organizations are

reexamining their current performance management systems. This research evaluates the efficacy of

current performance appraisal systems and then identifies the significance and implications of the

introduction of 360 degree feedback as a form of appraisal and its impact on the productivity of

employees in PHOENIX MOTORS PVT LTD. For this purpose, Descriptive research has conducted

through questionnaires. High preference has been given for implementation of the 360 degree

feedback system. The performance appraisal system is consider as an essential tool for bridging gap

between the top management and the executives it thus helps them to develop cordial relations and

mutual understanding.

Key words: performance, appraisal, 360‟ Appraisal system, job performance.

INTRODUCTION

A major concern of every organization should be to contribute positively towards the achievement of

its objective. Organizational effectiveness is often equated with managerial efficiency. A manager can

ensure organizational effectiveness only by guaranteeing the full utilization of human resource

available through individual employees under his guidance. Hence, it is always required for a

manager to monitor and measure the performance of employees.

Moreover, since the organization exists to achieve the goals, the degree of success that individual

employees have in reaching this individual goal is important in determining organizational

effectiveness. The assessment of how successful employees have been at meeting their individual goal

comes to a critical part of human resource management. This leads to concept of performance

appraisal.

“Performance appraisal is a method of evaluating the behavior of employees in the work spot,

including both qualitative and quantitative aspects of job performance indicates how an individual is

fulfilling the job demands and it is always in terms of results”. Under performance appraisal not only

the performance of an employee but also his potential for development is evaluated. “Performance

Appraisal is a systematic description of an employee‟s job relevant strengths and weaknesses”.

INTERCONTINENTAL JOURNAL OF HUMAN RESOURCE RESEARCH REVIEWISSN: 2320-9704 - ONLINE ISSN:2347-1662 - PRINT IMPACT FACTOR:1.615VOLUME 4, ISSUE 3, MARCH 2016

www.icmrr.org 181 [email protected]

In performance appraisal or merit rating refers to all the formal procedures used in working

organizations to evaluate the personalities and contributions and potential group members. In

appraisal system the employee‟s merits like initiatives, dependability, personality etc., are compared

with others and ranked to rated. Appraisals might be based on the criteria of employee‟s skills,

educational Qualifications, knowledge, abilities to delegateplans, supervise, assumes responsibility,

exercise leadership, personal qualities, creativity, decision making and interpersonal skills.

An appraisal motivates an employee into increased effort aimed at enhancing the outcome of the

assessment. It tells an employee what set of activities or what qualities are considered desirable by

the organization.

It is the systematic method of obtaining, analyzing & recording information about an employee

that is needed:

For effective management of business.

By the manager to help him improve the jobholders performance and plan his career.

By the jobholder to assist him to evaluate his own performance and develop himself.

In performance planning and review, the Reporting Manager is expected to set targets or tasks for

appraise in the beginning of the year. In the middle of the year, the appraise fills the self-appraisal

form, indicating the extent which the target or task has been completed, the difficulties faced and the

suggestions for improvement. At the end of the year, there is the annual review and targets/tasks set

for the next year. Both in the mid-year review and annual review, the self-appraisal is supplemented

by a performance review, discussion, the problems are discussed and the appraiser is given feedback

on how he is doing.

The appraisal system is an instrument for improving the work culture by convincing employees that

their career growth is linked with the performance of the company.

OBJECTIVES:

The objective is to know how effective is the execution of appraisal system in PHOENIX MOTORS

PVT LTD., Hyderabad.

To examine the present system of performance appraisal.

To know the satisfaction level of employees towards the compensation system based

on the performance.

To make suggestions towards improving the performance level of employees.

Limitations of the study:

In this case the superior appraises the person on certain positive qualities only. The negative traits

are not considered. Such an appraisal will not give a true picture about the employee. And in

some cases employees who do not deserve promotions may get it.

In this case only the negative qualities of the employee are considered and based on this appraisal

is done. This again will not help the organization because such appraisal may not present a true

picture about the employee.

In this case the superior gives an appraisal by giving central values. This prevents a really talented

employee from getting promotions he deserves and some employees who do not deserve anything

may get promotion.



Some bosses are lenient in grading their employees while some are very strict. Employee who

really deserves promotions may lose the opportunity due to strict bosses while those who may not

deserve may get benefits due to lenient boss.

In this case the employee is judged +vely or –vely by the boss depending upon the past

performance. Therefore although the employee may have improved performance, he may still not

get the benefit.

METHODOLOGY:

The research methodology is a systematic way to solve the problem and it is an important

component of the study without which researcher may not be able to obtain the facts and figures

from the employees.

SOURCE OF DATA:

The study is based on primary as well as secondary data collected from different sources:

A). Primary Data:

The primary data is collected with the help of questionnaires, which consists of twenty questions each.

The questionnaires are chosen because of its simplicity and liability. Researcher can expect straight

answers to the questions. The respondents are informed about the significant of the study and

requested to give their fair opinions.

B). Secondary Data:

Secondary data is collected through the documents provided by the personnel department. The

documents include personnel manuals, books, reports, journal, etc.

A) Study Unit:

The executives and employees at PHOENIX MOTORS PVT LTD., Hyderabad constitute

„universe‟ of the present study. It includes JGMS, AGMS, manager and other employees of

PHOENIX MOTORS PVT LTD Hyderabad.

B). Study Size:

The study size consists of 50 respondents employed in PHOENIX MOTORS PVT LTD,

Hyderabad. Of these 15 are executives, 10 are senior executives and the remaining 25 are employees.

Research design : Descriptive research

Research approach : Survey approach

Study technique : Universe

Statistical tool used : Percentage analysis, Chi-square test.

Method of the study : 3600 performance appraisal

PERIOD OF THE STUDY:

Since so many years PHOENIX MOTORS PVT LTD Hyderabad has been following the same

procedure of appraisals for their executives and employees and for the study of my project last one-

year data has collected on performance appraisals.



DATA ANALYSIS AND INTERPRETATION

1. Do you think performance appraisal is necessary for a company?

S.NO OPTIONS

NO. OF

RESPONDENTS PERCENTAGE

1 YES 44 88

2 NO 06 12

TOTAL 50 100

Interpretation:

To above question, 88% of the employees thought that the performance appraisal is necessary for a company and remaining 12% of employees said that the

performance appraisal is not necessary for a company.

2. Performance appraisal rating is used to

Interpretation:

S.NO OPTIONS

NO. OF


1 Identify areas of improvement 14 28

2 Identify areas of training &

development 24 48

3 Set performance target 04 8

4 All the above 08 16

Total 50 100



About the useful of Performance appraisal system, 28% have said that appraisal system helped them to identify areas of improvement, to 48% it helped in

identifying training & development needs, to 8% it helped in setting performance targets and to 16% it was helpful in all the above areas. By this we can say

that P.A is helpful in one way or the other for the employees.

3. In your experience the outstanding Performance of an employee is due to:

S.NO OPTIONS

NO. OF

RESPONDENTS

PERCENTAGE

1

Actual

Performance 14 28

2 Qualification 05 10

3 Experience 21 42

4

All the

above 10 20

Total 50 100

Interpretation:

28% of the employees responded that the outstanding Performance appraisal is due to Actual Performance, 10% of the employees are due to qualifications,

42% of the employees is due to Experience and 20% of the employees is due to all the above.

4. Employees get motivated with frequent Performance appraisal? If conducted?

S.NO OPTIONS

NO. OF


1 Strongly agree 21 42

2 Agree 12 24

3 Disagree 11 22

4 Strongly

disagree 06 12

Total 50 100



Interpretation:

66% of the employees said that the employees‟ gets motivated with frequent Performance Appraisal and 34% of the employees are not satisfied with above.

5. What are the factors taken into consideration while appraising an individual?

S.NO OPTIONS

NO. OF

RESPONDENTS

PERCENTAGE

1 Interpersonal

effectiveness 10 20

2 Teambuilding skills 13 26

3 Self motivate skills 23 46

4 Leadership 04 8

Total 50 100

Interpretation:

20% of employees considered interpersonal effectiveness while appraising an individual, 26% of employees considered Teambuilding skills, 46% of

employees considered self motivate skills and 8% of employees considered Leadership. By this we can say that these are the factors taken into consideration

while appraising an individual

6. Which method you are using for evaluating Performance?

S.N

O OPTIONS

NO. OF

RESPONDENTS

PERCENTAG

E

1 Mgmt By Objects 03 06

2 360

0 performance

appraisal 42 84

3 Assessment centre 02 04

4 Bars 03 06

Total 50 100



Interpretation:

06% of the employees using Mgmt by objects method for evaluating Performance, 84% of the employees using 3600 performance appraisal, 04% of the

employees using Assessment centre, 06% of the employees using BARS method.

7. What is your opinion about the method followed in the performance appraisal system?

S.NO OPTIONS

NO. OF


1 Excellent 24 48

2 Good 13 26

3 Moderate 07 14

4 Poor 06 12

Total 50 100

Interpretation:

48% of the employees said that the performance appraisal method followed by the company is excellent, 26% said good, 14% said moderate and 12% said it

is poor.

8. Is Appraisal process expensive and time consuming?

S.NO OPTIONS

NO. OF


1 YES 32 64

2 NO 18 36

Total 50 100

Interpretation:

64% of the respondents said that the performance appraisal is expensive and time consuming and 36% of the respondents said that the Performance appraisal

is not expensive and time consuming.



9. Do you agree with the assessment of your reviewing/reporting officers?

S.NO OPTIONS

NO. OF



2 Agree 16 32

3 Disagree 10 20

4 Strongly disagree 04 08

total 50 100

Interpretation:

72% of the employees responded that reporting officer was good at grading the performance and 28% were disagree his duties as per the

guidelines laid down.

10. Do you want any change in frequent between the appraisals?

S.NO OPTIONS

NO. OF


1 YES 41 82

2 NO 09 18

Total 50 100

Interpretation:

82% of the employees want to change in frequent between the appraisals and 18% of the employees don‟t want to change between the appraisals.



11. Have you been able to express all difficulties & problems which you have been facing with regard to your job & achievement of your

performance area?

S.NO OPTIONS

NO. OF


1 YES 47 94

2 NO 03 06

Total 50 100

Interpretation:

94% of the employees are able to express all difficulties & problems which they have been facing regarding their job and 6% are not able to express their

difficulties & problems.

12. Frequency at which merit rating/Performance appraisal is conducted?

S.NO OPTIONS

NO. OF


1 1YEAR 15 30

2 2YEARS 06 12

3

HALF

YEARLY 23 46

4 QUATERTLY 06 12

TOTAL 50 100



Interpretation:

30% of the employees said that the merit rating/performance appraisal is conducted at the frequency 1year, 12% of the employees said at half yearly, 46%

of the employees said at half yearly and 12% of the employees said at quarterly.

13. Are you satisfied with present Performance appraisal system?

S.NO OPTIONS

NO. OF


1 Highly satisfied 20 40

2 Satisfied 14 28

3 Dissatisfied 09 18

4 Highly dissatisfied 07 14

Total 50 100

Interpretation:

68% of the employees were satisfied with present Performance appraisal system and rest 32% of the employees was not satisfied with present system.

14. The appraisal is an opportunity for self review& reflection?

S.NO OPTIONS

NO. OF


1 YES 40 80

2 NO 10 20

TOTAL 50 100



Interpretation:

80% of the respondents have agreed that it is an opportunity to review themselves and 20% of them said that it does not help them in reviewing themselves.

15. Do you think the reward system is fair and adequate?

S.NO OPTIONS

NO. OF


1 Strongly

agree 10 20

2 Agree 24 48

3 Disagree 09 18

4 Strongly

disagree 07 14

Total 50 100

Interpretation

68% said that the reward system is fair and adequate and 32% responded that it is not fair.

16. Do you have a good relationship with appraiser after Performance appraisal?

S.NO OPTIONS

NO. OF

RESPONDENTS

PERCENTAGE

1 YES 44 88

2 NO 06 12

TOTAL 50 100

Interpretation:

88% of the respondents have the good relationship with appraiser after Performance appraisal. Rest 12% of the respondents is not having a good relationship

with appraiser after Performance appraisal.



17. Do you feel Performance appraisal promote you?

S.NO OPTIONS

NO. OF



2 Agree 12 24

3 Disagree 11 22

4 Strongly disagree 07 14

Total 50 100

Interpretation:

64% of the respondents feel that the Performance appraisal can promote the employee. Remaining 36% of the respondents are not agreed with the above

sentence.

18. In your opinion PIDS (Process ID service) is necessary?

S.NO OPTIONS

NO. OF


1 YES 45 90

2 NO 05 10

TOTAL 50 100



Interpretation:

90% of the respondent‟s opinion is that the PIDS is necessary and 10% of the respondent‟s opinion is that PIDS is not necessary.

19. By which way you are consistent for Performance appraisal in organization?

S.NO OPTIONS

NO. OF


1 Individual 04 8

2 Group 28 56

3 Both A & B 18 36

Total 50 100

Interpretation:

8% of the respondents were consistent as a Individual for Performance appraisal, 56% of the respondents were consistent as a group for Performing appraisal

and 36% of the respondents were consistent as both individual and group for Performance appraisal.

20. Is Balance Score Card helps in improving the Performance?

S.NO

OPTION

S

NO. OF

RESPONDENT

S

PERCENTAG

E

1 YES 44 88

2 NO 06 12

Total 50 100

Interpretation:

88% of the respondents agreed that the Balance Score Card helps in improving the Performance and 12% of the respondents disagrees that the BSC helps in

improving the Performance.



CHI-SQUARE TEST

HO: There is no significant relationship between Reward system and Motivation of employees

in performance appraisal system.

OPINION STRONGLY

AGREE AGREE DISAGREE

STRONGLY

DISAGREE TOTAL

MOTIVATION 21 12 11 06 50

REWARD

SYSTEM 10 24 09 07 50

TOTAL 31 36 20 13 100

OBSERVED VALUES EXPECTED VALUES (O-E)2 /E

21 15.5 1.95

10 15.5 1.95

12 18 2.00

24 18 2.00

11 10 0.1

09 10 0.1

06 6.5 0.04

07 6.5 0.04

CALCULATED VALUE 8.18

X2

calculated value= 8.18 ( Level of significance= 5%)

Degrees of freedom= (r-1) (c-1) = (2-1) (4-1) = 3

X2 critical value= 7.82

X2

calculated value (8.18) > X2 table value (7.82)

So, Null Hypothesis ( Ho) is rejected.



INFERENCE:

Hence it is concluded that there is a significant relationship between Reward system and Motivation

in performance appraisal system.

FINDINGS

In the light of the above discussion the following findings are made:

The company adopts 360 degree performance appraisal method for evaluating the performance

of their employees.

The executives are getting feedback on their performance through which they can review their

performance level.

40% of employees strongly agreed with the present Performance Appraisal system which

helps in their promotion.

32% of employees disagreed with present Reward system.

The management desire having cordial relations with the work to hold mutual discussions.

Performance appraisal system is considered as a means that aim at identifying the areas of

improvement, identifying areas of training and development setting performance target for

future.

The management has a clear understanding about the problem that the workers are the best

with moreover, they are eager to solve the problems of the workers as and when they arise.

The management was giving requisite training to workers in the areas where they are weak.

SUGGESTIONS

Based on the findings of the study and personal discussions held with various executives and

employees at PHOENIX MOTORS PVT LTD., Hyderabad possible suggestions and

recommendations are given:

It is recommended that the company should also give feedback to the non-executives for

improvement in their performance.

Performance appraisal should be conducted on quarterly basis and as for situational needs for

better performance of employees.

Better reward linkage can made to employees performance.

It is recommended that employees should be immediately communicated.

It is commended to counsel the employees appropriately regarding their strength and weaknesses

and assist in developing them to realize their full potential in line with the company‟s goals.

The top management is very much committed in implementing the performance appraisal system

as it is. The performance appraisal system is consider as an essential tool for bridging gap

between the top management and the executives it thus helps them to develop cordial relations

and mutual understanding.

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Phoenix Motors Pvt Ltd Personnel Manual

WEBSITES:

www.hrindia.com

www.google.com

www.heromotocorp.com



http://ro.uow.edu.au/artspapers/114

http://www.xavier.edu/hrd

http://www.uark.edu/

http://www.hrindia.com/

http://www.google.com/

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