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PROJECT REPORT
Project Title
Study of Performance Appraisal process at
DLF and its Effectiveness
Under guidance of
Faculty Supervisor Agency Supervisor Mr. Sudhanshu
Bhushan
Submitted by:
Harsh Kumar
Lingaya’s lalita Devi institute of
Management and sciences
0321921708
1
CONTENTS
Page
Nos.
Chapter 1: Introduction 1-7
Chapter 2: Objective and Methodology of the Study 8-10
Chapter 3: DLF. - A Profile 11-13
Chapter 4: Performance Appraisal - Theoretical Review 14-16
Chapter 5: Organisation under study
Performance Appraisal system in Punj Lloyd
Performance Appraisal system in Dabur India ltd.
17-22
Chapter 6: Performance Appraisal System in DLF. - A
Review
22
Chapter 7: Analysis and Interpretation of Data 23-37
Chapter 8: Conclusion and Suggestions 39-41
Bibliography 42
Annexures 43-45
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Chapter 1
Title of the Project:
Study of Performance Appraisal Process at DLF and Its Effectiveness
INTRODUCTION
The history of performance appraisal is quite brief.
Its roots in the early 20th century can be traced to Taylor's pioneering
Time and Motion studies. But this is not very helpful, for the same may
be said about almost everything in the field of modern human
resources management.
As a distinct and formal management procedure used in the evaluation
of work performance, appraisal really dates from the time of the
Second World War - not more than 60 years ago.
Yet in a broader sense, the practice of appraisal is a very ancient art. In
the scale of things historical, it might well lay claim to being the
world's second oldest profession!
There is, says Dulewicz (1989), "... a basic human tendency to make
judgements about those one is working with, as well as about oneself."
Appraisal, it seems, is both inevitable and universal. In the absence of
a carefully structured system of appraisal, people will tend to judge the
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work performance of others, including subordinates, naturally,
informally and arbitrarily.
The human inclination to judge can create serious motivational, ethical
and legal problems in the workplace. Without a structured appraisal
system, there is little chance of ensuring that the judgements made
will be lawful, fair, defensible and accurate.
Performance appraisal systems began as simple methods of income
justification. That is, appraisal was used to decide whether or not the
salary or wage of an individual employee was justified.
The process was firmly linked to material outcomes. If an employee's
performance was found to be less than ideal, a cut in pay would follow.
On the other hand, if their performance was better than the supervisor
expected, a pay rise was in order.
Little consideration, if any, was given to the developmental possibilities
of appraisal. If was felt that a cut in pay, or a rise, should provide the
only required impetus for an employee to either improve or continue to
perform well.
Sometimes this basic system succeeded in getting the results that
were intended; but more often than not, it failed.
For example, early motivational researchers were aware that different
people with roughly equal work abilities could be paid the same
amount of money and yet have quite different levels of motivation and
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performance.
These observations were confirmed in empirical studies. Pay rates
were important, yes; but they were not the only element that had an
impact on employee performance. It was found that other issues, such
as morale and self-esteem, could also have a major influence.
As a result, the traditional emphasis on reward outcomes was
progressively rejected. In the 1950s in the United States, the potential
usefulness of appraisal as tool for motivation and development was
gradually recognized. The general model of performance appraisal, as
it is known today, began from that time.
Modern Appraisal
Performance appraisal may be defined as a structured formal
interaction between a subordinate and supervisor, that usually takes
the form of a periodic interview (annual or semi-annual), in which the
work performance of the subordinate is examined and discussed, with
a view to identifying weaknesses and strengths as well as
opportunities for improvement and skills development.
In many organizations - but not all - appraisal results are used, either
directly or indirectly, to help determine reward outcomes. That is, the
appraisal results are used to identify the better performing employees
who should get the majority of available merit pay increases, bonuses,
and promotions.
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By the same token, appraisal results are used to identify the poorer
performers who may require some form of counseling, or in extreme
cases, demotion, dismissal or decreases in pay. (Organizations need to
be aware of laws in their country that might restrict their capacity to
dismiss employees or decrease pay.)
Whether this is an appropriate use of performance appraisal - the
assignment and justification of rewards and penalties - is a very
uncertain and contentious matter.
Controversy, Controversy
Few issues in management stir up more controversy than performance
appraisal.
There are many reputable sources - researchers, management
commentators, and psychometricians - who have expressed doubts
about the validity and reliability of the performance appraisal process.
Some have even suggested that the process is so inherently flawed
that it may be impossible to perfect it (see Derven, 1990, for example).
At the other extreme, there are many strong advocates of performance
appraisal. Some view it as potentially "... the most crucial aspect of
organizational life" (Lawrie, 1990).
Between these two extremes lie various schools of belief. While all
endorse the use of performance appraisal, there are many different
opinions on how and when to apply it.
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There are those, for instance, who believe that performance appraisal
has many important employee development uses, but scorn any
attempt to link the process to reward outcomes - such as pay rises and
promotions.
This group believes that the linkage to reward outcomes reduces or
eliminates the developmental value of appraisals. Rather than an
opportunity for constructive review and encouragement, the reward-
linked process is perceived as judgmental, punitive and harrowing.
For example, how many people would gladly admit their work
problems if, at the same time, they knew that their next pay rise or a
much-wanted promotion was riding on an appraisal result? Very likely,
in that situation, many people would deny or downplay their
weaknesses.
Nor is the desire to distort or deny the truth confined to the person
being appraised. Many appraisers feel uncomfortable with the
combined role of judge and executioner.
Such reluctance is not difficult to understand. Appraisers often know
their appraisees well, and are typically in a direct subordinate-
supervisor relationship. They work together on a daily basis and may,
at times, mix socially. Suggesting that a subordinate needs to brush up
on certain work skills is one thing; giving an appraisal result that has
the direct effect of negating a promotion is another.
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The result can be resentment and serious morale damage, leading to
workplace disruption, soured relationships and productivity declines.
On the other hand, there is a strong rival argument which claims that
performance appraisal must unequivocally be linked to reward
outcomes.
The advocates of this approach say that organizations must have a
process by which rewards - which are not an unlimited resource - may
be openly and fairly distributed to those most deserving on the basis of
merit, effort and results.
There is a critical need for remunerative justice in organizations.
Performance appraisal - whatever its practical flaws - is the only
process available to help achieve fair, decent and consistent reward
outcomes.
It has also been claimed that appraisees themselves are inclined to
believe that appraisal results should be linked directly to reward
outcomes - and are suspicious and disappointed when told this is not
the case. Rather than feeling relieved, appraisees may suspect that
they are not being told the whole truth, or that the appraisal process is
a sham and waste of time.
The Link to Rewards
Recent research (Bannister & Balkin, 1990) has reported that
appraisees seem to have greater acceptance of the appraisal process,
and feel more satisfied with it, when the process is directly linked to
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rewards. Such findings are a serious challenge to those who feel that
appraisal results and reward outcomes must be strictly isolated from
each other.
There is also a group who argues that the evaluation of employees for
reward purposes, and frank communication with them about their
performance, are part of the basic responsibilities of management. The
practice of not discussing reward issues while appraising performance
is, say critics, based on inconsistent and muddled ideas of motivation.
In many organizations, this inconsistency is aggravated by the practice
of having separate wage and salary reviews, in which merit rises and
bonuses are decided arbitrarily, and often secretly, by supervisors and
managers.
There are basically three purposes to which performance appraisal can
be put. First, it can be used as a basis for reward allocation. Decision
as to who gets salary increase, promotion, and other rewards are
determined by their performance evaluation. Second, these appraisals
can be used for identifying areas where development efforts are
needed. The performance appraisal is a major tool for identifying
deficiencies in individuals. Finally it can be used as a criterion against
which selection devices and development programs are validated. As a
key input into management’s reward and punishment decision,
performance appraisals can motivate or de-motivate employees.
9
Three different approaches exist for doing appraisals. Employees can
be appraised against
1. Absolute standards
2. Relative standards
3. Objectives
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Chapter 2
OBJECTIVE AND METHODOLOGY OF THE STUDY
1. Objective of the study
This project aims at studying the system of performance appraisal and
its effectiveness in an organisation. Performance appraisal is the most
significant and indispensable tool for the management as it provide
useful information for decision making in area of promotion and
compensation reviews.
Thus a broad objective of the study includes:
To know the present system of performance appraisal
To know the extent of effectiveness of the appraisal system
To identify and know the area for improvement
To measure the return on investment of time effort and energy for
the process
To suggest certain measures for further improvement in the current
system
2. Sample of the study
The population covered for the present study consisted of employee
belonging to supervisory and the level above. For the purpose of this
study, survey covered the employee of DLF. falling under supervisor
and the level above.
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The study covered a sample of 64 employees belonging to supervisory
level and above.
3. Methodology of the project
The project work has been carried out in three stages, a structured
questionnaire with objective and question was communicated tested
and finalise. During the second stage, the questionnaire was
administered to the employees at DLF by individually contacting them.
The work relating to data entry compilation, data analysis and report
writing constituted the third stage. Interview index was also used at
some places to get information on the project subject.
The details of the methodology adopted are presented below:
The Questionnaire
Keeping in view the objective of the study, questionnaire was designed
and tested on few employees. After getting the proper response and
sanction from the concerned department the questionnaire was
finalised. The questionnaire consisted of five sections.
First section of the questionnaire consisted of personal particulars and
the second section covered questions related to promotion policy. The
third section covered the system of performance appraisal in detail.
The fourth section covered system of communication followed in the
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organisation and the fifth section consisted of one subjective question
to get detailed input to make this system more effective, if any.
Response to Questionnaire
In all 64 questionnaires were given to employees falling in the category
of supervisors and above. Out of which 48 could be collected back duly
completed. The researcher individually contacted the employees to get
response on the questionnaire.
Data entry and analysis
It has been an uphill task to enter the enormous data received through
the questionnaire which consisted nearly 25 questions. Response to
the descriptive questions though very few but was valuable for the
purpose of study. Hence these were further structured in time with the
system adopted for compilation and data analysis.
Limitations
Many employees gave guarded answers to some crucial questions.
Some of them did not fill the questionnaire due to lack of time
Response could not be collected from the total sample selected.
Some of the questionnaire could not be completed due to reasons
other than time factor.
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The confidentiality of the system created some problem in getting
information.
Chapter 3
ORGANISATION PROFILE
DLF is one of the largest infrastructure company of north India. Ever
since its incorporation, DLF has worked to exemplary high standard of
construction with use of latest state of the technology supported by an
excellent pool of talent, trained and highly skilled work force headed
by dynamic Professional Management staff. DLF Management has kept
pace with latest and sophisticated printing technology being used by
developed countries like Japan, UK, France, Germany, USA etc. with
commitment to Human Resource Development.
DLF undertakes total execution of any construction job that involves
pre-press, colour and digital electronic imaging, printing on sheetfed or
web fed multi-colour-printing machines. Besides, all types of
fabrication and finishing operations are also carried out in an
integrated manner.
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DLF is a name synonymous with leadership, trust, quality and
reliability. Built on a strong pedigree and established reputation, the
Group combines on impeccable record of performance with innovation
and leadership in the real estate industry.
Down to Earth and many more constructions, which includes shopping
malls. It also contributes on large number to multi-plexes and shown
great enthusiasm in the hospitality sector and have struck a deal
between DLF group and overseas giant Hilton to build across the
country a chain of hotels with an investment estimated up to 10000-
12000 crore and DLF holding 74% in joint venture. Apart from having
developed 21 premier colonies in Delhi, the group also entered in to
SEZs which are meant to provide fiscal incentives to developers and
tenants both.
The company Received the 'Corporate Buildings Award' in March 2005
instituted by the leading construction design magazine 'Indian
Architect and Builders'.
Awarded by Haryana Urban Development Authority (HUDA) for
'Excellence in Horticulture Preservation'.
DLF limited and its subsidiaries is leading professionally Managed
Company emerging as one of the foremost enterprise in real estate
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development. It has extensive land reserve of 10225 acres in various
regions across India. DLF is the only company in India in the Consumer
validated category from the real estate sector to have been awarded
‘Super brand' ranking.
The DLF Group was founded by Chaudhury Raghuvendra Singh in
1946. DLF developed some of the first residential colonies in Delhi such
as Krishna Nagar, South Extension, Greater Kailash, Kailash Colony and
Hauz Khas. In 1957, with the passage of Delhi Development Act, the
government assumed the control of real estate development activities
in Delhi and the role of private real estate developers was restricted.
As a result DLF began acquiring land at relatively low cost outside the
area controlled by the Delhi Development Authority, particularly in the
district of Gurgaon in the adjacent state of Haryana. . In 1989, DLF
ventured into community shopping centers. In 1991, it ventured into
1st Grade Office space and in 2002, DLF ventured into organized retail
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Chapter 4
PERFORMANCE APPRAISAL
Since organisation exist to achieve goals, the degree of success that
individual employees have in reaching their individuals goals is
important in determining organizational effectiveness. The
assessment of how successful employees have been at meeting their
individual goals, therefore, becomes a critical part of HRM. This leads
us to the topic of performance appraisal.
PURPOSE
There are basically three purposes to which performance appraisal can
be put.
First, it can be used as a basis for reward allocations. Decisions as
to who gets salary increases, promotions, and other rewards are
determined by their performance evaluation.
Second, these appraisals can be used for identifying areas where
development efforts are needed. Management needs to spot those
individuals who have specific skill or knowledge deficiencies. The
performance appraisals is a major tool for identifying these
deficiencies.
Finally the performance appraisal can be used as a criterion against
which selection devices and development programs are validated.
It is one thing to say, for example, that our selection process is
successful in differentiating satisfactory performers from
unsatisfactory performers.
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THE APPRAISAL PROCESS
Established performance standard
Communicate performance expectations to employee
Measure actual performance
Compare actual performance with standards
Discuss the appraisal with the employees.
If necessary, initiate the corrective action
The appraisal process begins with the establishment of performance
standards. These should have evolved out of job analysis and the job
description discussed under human resource planning. These
performance standards should also be clear and objective enough to
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be understood and measured. Too often, these standards are
articulated in some such phrase as "a full day's work" or "a good job".
Communication only takes place when the transference of information
has taken place and has been received and understood by the
subordinate. Therefore feedback is necessary from the subordinate to
the manager. Satisfactory feedback censures that the information
communicated by the manager has been received and understood in
the way it was intended.
The third step in the appraisal in the measurement of performance. To
determine what actual performance. To determine what actual
performance is, it is necessary to acquire information about it. We
should be concerned with how we measure and what we measure.
What we measure is probably more critical to the evaluation process
than how we measure, since the selection of the wrong criteria can
result in serious dysfunctional consequences. And what we measure
determines, to a great extent, what people in the organization will
attempt to excel at.
One of the most challenging tasks facing managers is to present an
accurate appraisal to the subordinate and then have the subordinate
accept the appraisal in a constructive manner. Appraising
performance touches on one of the most emotionally charged activities
the assessment of another individual's contribution and ability. The
impression that subordinates receive about their assessment has a
strong impact on their self-esteem and, very important, on their
subsequent performance.
The final step in the appraisal is the initiation of corrective action when
necessary. Corrective action can be of two types. One is immediate
and deals predominantly with symptoms. The other is basic and
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delves into causes. Immediate corrective action often described as
"putting out fires," whereas basic corrective action gets to the source
of deviation and seeks to adjust the difference permanently.
Immediate action corrects something right now and gets things back
on track.
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Chapter 5
PERFORMANCE APPRAISAL PROCESS IN Punj Lloyd
Punj Lloyd has followed two methods, namely, absolute standards
and self appraisal system. Absolute method means that subjects are
not compared with any other person. Their seniors appraise the
subjects. Up to the post of Deputy Manager they appraise the
employees by following both the methods.
Under this method also they follow Critical Incident Appraisal method.
This method focuses the rater’s attention on those critical or key
behaviour that make the difference between doing a job effectively
and doing it ineffectively. Under this method the appraiser writes down
little anecdotes that describe what the employee did was effective or
ineffective. Critical incidents, with their focus on behaviours, judge
performance rather then personalities.
The strength of this method is that it looks at behaviours. Additionally ,
a list of critical incidents on a given employee provides a rich set of
examples from which the employees can be shown which of his or her
behaviours are desirable and which ones call for improvement.
Second method refers to the systematic monitoring and measuring of
performance – ideally, by having the individual review his or her own
performance. Inherent in allowing individuals to control their own
performance is a positive image of human nature.
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The purpose for the performance appraisal is as follows :-
1. Promotion of the employees.
2. Increment in salary.
3. Any other purpose.
They are using this performance appraisal system in appraising the
people in Civil construction, pipelines, tankages, telecom and
transmission and composite construction.
PERFORMANCE CYCLEMID APRIL
22
TargetSetting
AnnualReview
Reporting Officer
Final Review
Reviewing Officer
4monthlyreview
4monthlyreview
OPEN
OPEN OPEN
PERFORMANCE APPRAISAL SYSTEM IN DABUR INDIA LIMITED
In Dabur India Limited they have the system of performance appraisal
of their employees. The main objective behind this performance
appraisal system is to evaluate the performance, promote their
employees and to arrange for the various training programmes if they
require for enhancing their skills in their respective areas and in
contribution enhancement.
Employees are evaluated by how well they accomplish a specific set of
objectives that have been determined to be critical in the successful
completion of their job. This approach is frequently referred to as
management by objectives. Management by objectives is a process
that converts organizational objectives into individual objectives. It
can be thought of as consisting of four steps: goal setting, action
planning, self-control, and periodic reviews. In goal setting, the
organization's overall objectives are used as guidelines from which
departmental and individual objectives are set. In action planing, the
means are determined for achieving the ends established in goal
setting. That is, realistic plans are developed to attain the objectives.
Self-control refers to the systematic monitoring and measuring of
performance. Finally, with periodic progress reviews, corrective action
is initiated when behaviour deviates from the standards established in
the goal-setting phase. Dabur uses very constructive performance
23
appraisal process while evaluating its employees. Its evaluation is
based on quantitativewise and objectivewise.
Company set goals to its employee by properly reporting with its
employees and then evaluating them upto what extent it has been
achieved and if there is failure in reaching the target what are the
causes or reasons behind it.
Every evaluator has his or her own value system which acts as a
standard against which appraisals are made. Relative to the true or
actual performance an individual exhibits, some evaluators mark high
and others low. The former is referred to as positive leniency error, and
the latter as negative leniency error. When evaluators are positively
lenient in their appraisal, an individual's performance becomes over-
stated; that is, rated higher than it actually should. Similarly, a
negative leniency error understates performance, giving the individual
a lower appraisal. As such there is no scope of error as far as the
Dabur company is concerned, but sometimes over estimation of target
brings about a description in the evaluating criteria. Thus, though
chances are less, positive leniency errors have been stated to be
committed.
Outcome of Performance Appraisal
As far as Dabur company is concerned, there are four outcomes
possible:
a. Outstanding - If the performance evaluated by the management
turns out to be outstanding. If the employee performs in such a way
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as to collect 3 consecutive outstanding performance into his/her
credit, he/she gets promoted.
b. Excellent - If the performance evaluated by the management
turns out to be excellent. If the employee performs in such a way as
to collect 3 consecutive excellent performance into his/her credit,
he/she gets promoted.
c. Good - If the performance evaluated by the management turns
out to be good. The management sends the employee to the
training programme to improve his/her skill to perform better.
d. Below average - If the performance evaluated by the
management turns out to be below average. And, if the employee
collects 3 below average to his/her credit, then he/she is dismissed.
Duration of Appraisal System
The time constraints enables the employee to show or project his/her
capabilities in term of performance as per the duration allowed. In
Dabur India Limited, the performance appraisal system is carried out
annually.
Feedback
The company provides the annual feedback to its employees and thus,
in term bring out the highlights of the self assessment programme.
This enables the better communicaiton between the management and
employees ad thus, helps in promoting the business future.
Response
25
There are mixed responses from the feedback by the employees. It has
helped some of the employees in motivating themselves while those
who felt bad were thoroughly communicated and all the confusion and
failure part were discussed with employees.
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Chapter 6
PERFORMANCE APPRAISAL PROCESS IN DLF
DLF Ltd. follows a system of performance appraisal. The period of
appraisal and methods of appraising is different for different
category/group. The appraisal of trainee is done every quarter from the
date of joining. Organisation follow a separate system of appraisal for
workers and the level Asst. Supervisor and above. Both the category
are appraised twice a year.
Appraisal of Junior Management Staff
In DLF assistant supervisor to senior officer are appraised twice a year
in the month of April and October. The assessment is done following
guidelines and is done on different eleven attributes of knowledge of
work, quality of work, quantity of work, dependability, initiative drive
and resourcefulness, work attitude, conduct, discipline, attendance,
communication, subordinate development. Each attribute is assigned
10 marks making a total of 220 (maximum marks) head of the
department appraise the employee on different attribute. The result
are used for different purpose of promotion, increment etc.
27
Chapter 7
ANALYSIS AND INTERPRETATION OF DATA
After collecting the data on "Performance Appraisal System of
Supervisory level in DLF. The data was analysed and interpreted. The
various topics covered for analysis and interpretation of data are:
1. Promotions
A promotion may be defined as an upward advancement of an
employee in an organisation to another job, which commands better
pay/wages, better status/prestige and higher opportunities/challenges
and responsibility, a better working environment, hours of work and
facilities etc.
Promoters have a salutary effect on the satisfaction of the promoted
person's need for esteem, belonging and security. They also afford an
opportunity for greater self-actualizing action through more varied and
challenging assignments. The promotion policies differ from an
organisation to another.
The guidelines for departmental promotion in DLF are same for male
and female employees. The period of experience required for filling a
higher post departmentally varies from 3-5 years. 5 years experience
for promotion to managerial staff and 3 years experience for promotion
to Junior Management staff is needed. The other area of promotion
apart from seniority are merit and fitness. Though these guidelines are
not in a written format the supervisor and manager get it at the time of
appraisal from the personnel department.
28
As per the guidelines from the personnel department employees are to
be promoted accordingly. However there is confusion among the
employee as these guidelines are not being explained time to time,
many are not aware of the existing promotion policy in the
organisation.
Respondents were asked whether the promotion is well defined in the
organisation. The responses were are given below:
N=48
Response Number Percentage
Yes 26 54.16
No 8 16.66
Can't say 141 29.16
From the above table, it can be seen that 54% agree that promotion is
well defined in the organisation. However 30% were not able to say it
as there is lack of information about the promotion policy. Every
employee need to be communicated about the existing promotion
policy.
Respondents were asked about the number of promotion received in last three years. The responses were as
given below:
Response Number Percentage
None 14 29.16
One 30 62.5
Two 0 0
Three 2 4.16
Any other 2 4.16
More than 50% received one promotion in the last 3 years
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Respondent were also asked to suggest any change in the policy. The responses were as given below:
Response Number Percentage
Merit not recognised 10 20.83
Does not define career plan 8 16.66
Not integrated with bus 0 0
Heterogeneity within policy for different position
28 58.83
Majority suggested for no change in the policy. It seems they are
satisfied with the current policy.
Appraisal system/factors/traits/assessment
Performance appraisal in general term refers to the process of
evaluating the performance and qualification of the employees in term
of job requirements for purpose such as placement, selection and
promotions, to provide financial rewards and provide other action of
training, counselling etc.
Respondent were asked about the appraisal system in general. The responses were as given below:
Response Number Percentage
A fair assessment of ability and performance
14 29.16
An annual ritual 12 25
A management gimmick 2 4.16
A necessary 0 0
Something useful for the employee and the organisation
20 41.66
Any other 0 0
Majority responded that the system of performance appraisal is
something useful for the employee and the organisation.
30
Factors/traits of evaluation
Employee are assessed on different factors/traits belonging to both
performance and non performance area.
In Thomson Press (I) Ltd. Junior Management Staff are assessed on
following 11 attributes:
Knowledge of work
quality of work
quantity of work
dependability
initiative drive and resourcefulness
work attitude
conduct
discipline -attendance - communication
subordinate development
Each attribute is assigned 10 marks making a total of 220 (maximum
marks)
Respondent were asked to rate the factors/traits of evaluation. The responses were as given below:
Response Number Percentage
Outstanding Nil Nil
Very good 10 20.83
Good 18 37.5
Satisfactory 20 41.66
Poor Nil Nil
The factors and traits of evaluation were rated satisfactory which need
to be looked for and bring some change in it.
31
Aligning goal
Respondent were asked about the present system, does it help in aligning individual goal with those of the
organisation. The responses were as given below:
Response Number Percentage
Yes 22 45.83
No 6 12.5
Can't say 18 37.5
No response 2 4.16
Here the response from the supervisor were 45.83% for the factor that
it help in aligning their goal with those of organisation.
Who should appraise?
The method of evaluation and who should appraise varies from
organisation to organisation. Sometimes its department head or
appraisal committee and sometimes self appraisal. Many organisation
are following the system where department head or immediate
supervisor appraise the subordinate.
Respondent were asked, who should appraise them? The responses were as given below:
Response Number Percentage
Your immediate supervisor 6 12.5
Department head 22 45.83
Appraisal committee 12 25
Self Appraisal 6 12.5
Satisfied with the present system 2 4.16
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Majority response were for the department head to appraise. A quarter
also responded for the appraisal committee to do the appraisal.
Appraiser's Approach
Respondent were asked to rate the appraiser's approach. The response were as given below:
Response Number Percentage
Outstanding Nil Nil
Very good 8 16.66
Good 26 54.16
Satisfactory 14 29.163
Poor Nil Nil
Majority rated the appraised approach to be good while appraising. No
body rated it to be outstanding and poor.
Monetary benefit/reward
Performance appraisal system help in the system of providing
monetary benefit and rewards. This helps in keeping the employee
motivated and meet both the individual and organised goal.
Respondent were asked about the system linkage to monetary benefit
and also frequency of rewards in performing well. The responses were
as given below:
33
Monetary benefit
Response Number Percentage
Yes 28 58.33
No 6 12.5
Can't say 12 25
No response 2 4.16
Here more than 58% responded that the monetary benefit is extended
to them as a result of the outcome of the performance appraisal
system.
Rewards
Respondent were asked about the frequency of reward as an outcome of the current performance appraisal
system. The responses were as given below.
Response Number Percentage
Rarely 14 29.16
On a few occasion 10 20.83
Sometimes 18 37.5
Often 0 0
Almost always 6 12.5
Here the response were mix with 37.5 percent agreeing that rewards
come to them sometimes as a result of performance. This has to be
looked into and the frequency be increased to keep employee
motivated and meet their goal.
34
Area of Responsibility
Respondent were asked about their area of responsibility. Whether the organization help them in
prioritizing their own area of responsibility. The response to the above were as given below:
Responses Number Percentage
Yes 22 45.83
No 4 8.33
Can't say 20 41.66
No response 2 4.16
The response were not even 50% which shows some difference in
meeting the goal of prioritizing the area of responsibility. 41% of the
respondent were not able to say anything. This shows that the
management has to look into the above and see what the employee
can do, making them more aware of their responsibility.
Career Progress
Career progress is something which is continuous, with the input from organisation in term of training,
feedback and counselling. In today's changing scenario this has to be followed in every organisation so that
an individual make progress in the career adding value to himself and the organisation. Respondent were
asked about the current system helping in their career progress. The responses to the above were as given
below:
Response Number Percentage
To a large extent 12 25
To some extent 28 58.33
Not at all 8 16.66
Here only 58% response were for the option that it helps in career
progress to some extent while 25% were for the option that it helps to
a large extent. The system of performance appraisal has to incorporate
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the element of career progress by highlighting the strength and
weakness of each employee.
Career Development
Career advancement is the most motivating factor when employee
aspire for the advancement of his career and for better opportunities
to use his/her talents. From the organisation's point of view, it is
necessary to develop in manager. Some expectations of opportunities
for the future in order to keep their motivation high. Career planning
means helping the employee plan his career in terms of his capabilities
with the context or organisational needs. Individual, after becoming
aware of some of his/her capabilities and career and development
opportunities chooses to develop himself/herself in a direction that
improves his/her chances of being able to handle new responsibilities.
It is also the responsibility of the employer to help him/her to identify
the career opportunity, make choices and develop his/her career.
Supervisor and above position holder in DLF Ltd. were asked about the
career development plan.
Question asked was as follows:
Based on your ability does it lay career development for you?
The responses to the above were as given below:
Response Number Percentage
To a large extent 8 16.66
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To some extent 22 45.83
Not at all 18 37.5
Here only 46% of the respondent gave response that it lay career
development plan to some extent while 38% gave response that there
is no career development plan at all.
The reason for the above were:
1. Limited promotional avenues
2. Limited exposure towards practical experience
as they are not exposed to any outside/foreign training and no
special privilege is provided to them in this regard.
3. No motivation as employees performing well
are not awarded appropriately
4. Stagnation at certain levels for prolonged
period.
Feedback
Providing feedback play a constructive role. It helps the employee
know his/her weakness and strength. Feedback provides for the area of
improvement.
Respondent were asked about the frequency of feedback based on their performance. The responses were
as given below:
Response Number Percentage
Rarely 12 25
On a few occasion 20 41.66
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Sometimes 12 25
Often 4 8.34
Almost always Nil Nil
41 percent responded that feedback is provided though on a few
occasion. The frequency has to increase both from the individual and
organisation point of view to keep the individual motivated for work in
line with the organisational expectation.
Remedial measure
Based on the performance the remedial measures are taken to do
away with weakness if any and build on the strength and add to the
existing capability
Response on the remedial measure were as given below:
Response Number Percentage
Job rotation 22 45.83
Sent to training programme 20 41.66
Counselled 6 12.5
Any other Nil Nil
None Nil Nil
Here the response were both for job rotation and training programme.
During the course it was felt that more training input is to be provided
to the employee to overcome the weakness and improve upon the
existing capability of the employee.
Taping the potential
In an organisation human are the capital with their skill, intellect ad
capability. It lies on the organisation's strategy and the manager to tap
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the real potential of an employee and take work in that regard which is
good both for individual and the organisation.
Respondent were asked about the response on the same. The
response were as given below:
In your opinion does this system provide for taping the potential of individual?
Response Number Percentage
To a large extent 12 25
To some extent 32 66.66
Not at all 4 8.33
Majority response were positive but only to some extent. The human
resource department need to assess the real potential of human
capital through the future performance appraisal process and need to
channelise all the potential in right direction with a fixed goal.
Training
Training refers to the teaching/learning activities carried on for the
primary purpose of helping members of an organisation to acquire and
apply the knowledge, skills abilities and attitude needed by that
organisation. It is an act of increasing the knowledge and skill of an
employee for doing a particular job.
Respondent were asked for whether the present system help in identifying training needs. The response
were given as below:
Response Number Percentage
To large extent 12 25
To some extent 26 54.16
Not at all 10 20.83
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The system does help in identifying training needs but only to some
extent. During the course, suggestion for separate section for
identifying training needs came from the supervisory and above level
employee.
Job rotation
Job rotation means systematically moving workers from one job to
another. Job rotation is the method of enhancing skill and providing
opportunity to overcome weakness in any area of work. Respondent
were asked about the frequency of job rotation. The responses were as
given below:
Have you been rotated to other department or within the department?
Response Number Percentage
Yes 22 45.83
No 26 54.00
Majority of the response were 'No' for the job rotation. The employee
need to be put on job rotation on regular basis in order to enhance
their own capability and increase organisations productivity.
Right individual for right job
Respondent were asked about the system help in identifying right
individual for a right job.
In your opinion does this system help the management identify right
individual for a right job to achieve the goal of the organisation?
The responses were as given below:
Response Number Percentage
To a large extent 14 29.16
To some extent 34 70.83
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Not at all Nil
Majority response were that it does help in identifying right individual
for a right job. This means some clarity do exist at the supervisory
level in terms of job.
Counselling
Respondent were asked about the need of counselling and whether the
organisation provide counselling. The responses were as given below:
Do you need counselling?
Response Number Percentage
Yes 32 66.66
No 2 4.16
Can't say 14 29.16
Majority response came for the need of counselling. This proves that
employee need counselling both in work areas and behavioural area.
Respondent were asked about the organisation providing counselling. The responses were as given below:
Response Number Percentage
Yes 16 33.33
No 24 50
Can't Say 8 16.66
Majority response were that organisation does not provide counselling.
This brings the need of counselling.
Overall assessment of performance appraisal.
Respondent were asked to rate the performance appraisal. The response were as given below:
Response Number Percentage
Outstanding Nil Nil
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Very good 8 16.66
Good 16 33.33
Satisfactory 24 50
Poor Nil Nil
50% of the respondent rated the system of performance appraisal to
be satisfactory. Nobody rated it to be poor.
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Chapter 8
CONCLUSIONS & SUGGESTIONS
Conclusion
The analysis and interpretation of data on study of performance
appraisal and its effectiveness in an organisation led to the following
conclusions:
The promotion rule though defined need to be communicated to
every employee before appraisal process is done and also justify
the promotion as a result of the appraisal. That the promotion policy
followed differs at different position and category. A uniformity has
to be there in the implementation of promotion policy at all levels
The process of performance appraisal followed in DLF Ltd. at the
supervisory and above level is to say not good but of satisfactory
level. The department head doing the appraisal is OK as far the
supervisor level is concerned.
The appraisal outcome has to be used frequently for the purpose of
reward on performing well together with the feedback on the
performance. Also when performance goes down employee has to
be given feedback and motivated to do better.
The organisation at present doesn't lay career development plan. It
is being followed in Punj Lloyd but there also it remains only on
paper and not utilized on grounds.
In DLF Ltd. feedback is being provided to the employee though on a
few occasion. This is being followed in Omaxe Ltd. in strict terms
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where the annual feedback is provided to employees which
highlights the strength and after assessing the performance.
The policy of assessing the performance being practised half yearly
at DLF Ltd. is good and healthy. This is not so in Dabur India Limited
where the performance appraisal is done annually.
Presently there is low training input. From the process of
performance appraisal in DLF Ltd. This is not so in Punj Lloyd where
the management get training input for their employee of different
division DLF Ltd. need to stress upon the training need identification
area and incorporate some changes to get the training input after
highlighting the strong and weak area of performance.
The mechanism of counselling pre-performance and post
performance is not in practice at any organisation in strict term.
During the course of study suggestion came from the employee side
for the need of counselling.
Suggestions
The study undertaken bring some interesting result.
Training the Appraisee: It is proposed that appraiser be trained for
clear understanding of the system and its objective and also
counselled to be honest, fair, just, unbiased in appraising the
appraisee.
Factors/traits of evaluation: It is proposed that appraisee evaluated
on above factors/traits be given suitable remark or justification for
being given different quantitative grade.
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Greater clarity has to be has to there in terms of job responsibility.
This is possible when the appraisal is done on the basis of the
description.
Performance feedback: The performance feedback sessions should
be improved which would results in increasing employee motivation
to improve performance. The following could be incorporated.
- Pin point the problem behaviour and make sure the employee is
aware of it
- Make sure the employee understands the consequences of the
problem behaviour. Get employee's commitment to change and
make sure he cares about the change
- Assistance should be provided to improve poor performance.
Make a realistic plan appropriate to the behaviour and set a time
frame for improvement.
- To make sure to review performance time to time
The other change which has to be incorporated at the supervisor
and the level above are:
- These should be listing down of task undertaken during the last
one year and the result achieved.
- In some areas of performance there should be self appraisal and
more and more counselling so that employee improve upon weak
area and understand what is expected of him/her at the
organization level.
- Based on the above an open appraisal system is suggested.
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In an open appraisal the employee would come together to set the
targets, to understand the mutual expectations and support to be
provided by the appraiser to the employee for achieving mutually
accepted goals/targets. Through this process of setting targets the
interpersonal relationship between the appraiser and the employee
would improve.
The open appraisal system reduces the whims and fancies of the
appraiser. It promotes result-orientation as it is based on performance
rather than on personality based appraisal.
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BIBLIOGRAPHY
Recent Experience Human Resource Development, editors - T.V.
Rao & D.F. Pereira.
Human Resource Management, Eighth edition, Gary Dessler.
Personnel Management, sixth edition, Edwin B. Flippo
Training & Development, Uday Pareek
Related Internet Sites
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ANNEXURES
QUESTIONNAIRE
THIS STUDY IS DESIGNED TO GET OPINION ON TH PRESENT SYSTEM OF PERFORMANCE APPRAISAL. (PROCESS, EVALUATION, IMPLEMENTATION AND IT’S FOLLOW UP IN THE ORGANISATION) KINDLY MARK YOUR APPROPRIATE RESPONSE.
PART A
Name: Age:
Department: Designation:
Qualification Total Exp.:
Exp. In TP:
PART B1. Is the promotion policy well defined in your organisation?
(A) Yes (B) No (C) can’t say2. How many times you received promotion? (Last three years)
(A) None (B) One (C) Two (D) Three (E) Any other (Pl. specify)3. Do you suggest any change in the policy? If so why?
4. Merit not recognized 5. Doesn’t define career plan 6. Not integrated with business7. Heterogeneity within policy for different position8. Any other (Pl. specify)
PART C
1. What do you think about the APPRAISAL SYSTEM in general?A. Affair assessment of ability and performanceB. An annual ritualC. A management gimmickD. A necessary evilE. Something useful for the employee and the organisationF. Any other (Pl. specify)
2. How do you rate the factor / traits of evaluation?
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(A) Outstanding (B) V.good (C) Good (D)Satisfactory (E)Poor3. Is the assessment an on going process?
(A) Yes (B) No (C) can’t say
4. In which following areas (one more than one) does the present system help you to understand your ability? (Pl. specify.)
A. Planning B. Problem solving C. Ability to motivate D. Identify training needs E. Communication F. Role clarity G. Any other (Pl. specify)
5. Does this system help you in aligning your goal with those of organisation?(A) Yes (B) No (C) can’t say
6. In your opinion who should appraise you?A. Your immediate supervisorB. Department headC. Appraisal committeeD. Self-appraisalE. Satisfied with the present system
7. How do you find the appraiser’s approach in appraisal process?(A) Outstanding (B) V.good (C) Good (D)Satisfactory (E)Poor
8. Is the system linked to monetary benefit? If yes, does it extend to you(A) Yes (B) No (C) can’t say
9. Does the present system help in rewards for performing well? A. RarelyB. On a few occasionC. SometimesD. OftenE. Almost Always
10. Does it help prioritize your area of responsibility?(A) Yes (B) No (C) can’t say
11. In your opinion does it helps in career progress?A. To a large extentB. To some extentC. Not at all
12. Does this system provide feedback on your performance?A. RarelyB. On a few occasionC. SometimesD. OftenE. Almost Always
13. Based on your ability does it lay career development plan for you? A. To a large extentB. To some extent
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C. Not at all14. What kind of remedial measures are taken?
A. Job rotationB. Sent to training programmeC. Counselled D. Any other (Pl. specify.) E. None
15. In your opinion does this system provide for taping the potential of individual?A. To a large extentB. To some extentC. Not at all
16. In your opinion does it provide for identifying training needs?A. To a large extentB. To some extentC. Not at all
17. Have you been rotated to other department or within the department?(A) Yes (B) No
18. In your opinion does this systym help the management identify right individual for a right job to achieve the goal of the organisation?
D. D To a large extentE. To some extentF. Not at all
19. Do you need counseling?(A) Yes (B) No (C) can’t say
20. Does the organisation provide counseling after appraisal?(A) Yes (B) No (C) can’t say
21. How do you find the overall assessment of PERFORMANCE APPRAISAL?(A) Outstanding (B) V.good (C) Good (D) Satisfactory (E) Poor
Part D
1. What is the system of communication? (A) Upward (B) Down ward (C) Both A&B (D) Lateral
2. Have you understood clearly as to what is expected of you?
(A) Yes (B) No (C) can’t say
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Part E
1. In your opinion how can the present appraisal system be made more effective?
(Pl.specify point
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ACKNOWLEDGEMENT
My sincere thanks to faculty supervisor Mrs. and division supervisor Mr.
Sudhanshu Bhushan under whose able guidance and kind cooperation I
was able to complete the project work titled "Study of Performance
Appraisal System and its Effectiveness in an Organisation".
I am also gratefully acknowledged to help rendered by Mr. Ajay Gauri
Officer HR, DLF Ltd., who was always there to provide guidance
whenever required.
All those employee of DLF Ltd, Executive at Punj Lloyd and Dabur India
Ltd deserve special thanks for their cooperation and help in the
collection of necessary and relevant material for this work.
Also, I do thank and remember my friends for their effort and helping
hand.
Every effort has been made to enhance the quality of work. However, I
owe the sole responsibility of the shortcoming, if any, in the study.
Harsh Kumar
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