ASSIGNMENT On

HR policy of performance management

Submitted by

Sarayu Prasad dubey Roll No : PGDM09047

I-Business institute35,Knowledge Park II ,Greater Noida

To

Mr. M.K.Ravi

H.O.D. (HRD)

I- Business Institute, Greater Noida

TABLE OF CONTENT

S.NO. TITLE PAGE NO.

1. LITERATURE REVIEW

1.1MEANING

1.2CHARACTERISTICS

1.3ROLE

1.4PERFORMANCE MANAGEMENT CYCLE

1.5OBJECTIVES

1.6TYPES

1.7PERFORMANCE APPRAISAL CYCLE

1.8METHODS

1.9BENEFITS

COMPANY PROFILE

2.1 OVERVIEW OF THE SERUM

2.2 PRODUCT PROFILE OF SERUM

2.3 SWOT ANALYSIS

2.4 INFRASTUCTURE

2.5 PROCESS

2. RESEARCH METHODOLOGY

3.1OBJECTIVES OF STUDY

3.2COLLECTION OF DATA

3.3SELECTING THE METHODOLOGY FOR

EMPLOYEE

3.4LIMITATION OF STUDY

3. DATA ANALYSIS

4. FINDINGS

RECOMMENDATIONS AND RESULTS

ANNEXURE

BIBLIOGRAPHY

CHAPTER-1INTRODUCTION

PERFORMANCE 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.

Performance appraisal, also known as employee appraisal,

is a method by which the job performance of an employee is

evaluated (generally in terms of quality, quantity, cost and

time). Performance appraisal is a part of career

development.

Performance appraisals are regular reviews of employee

performance within organizations.

Generally, the aims of a performance appraisal are to:

Give feedback on performance to employees.

Identify employee training needs.

Document criteria used to allocate organizational

rewards.

Form a basis for personnel decisions: salary increases,

promotions, disciplinary actions, etc.

Provide the opportunity for organizational diagnosis and

development.

Facilitate communication between employee and

administration

Validate selection techniques and human resource policies

to meet federal Equal Employment Opportunity

requirements.

Performance Appraisal Summary

Performance appraisal, while enabling a manager to identify

the training needs of employees, and evolving a training plan

for them, also, serves to meet other objectives. Performance

appraisal satisfies the psychological needs individuals have

to know how they are performing their job and increases

employees' job satisfaction and morale by letting them know

that the manager is interested in their progress and

development. Systematic performance appraisal also

provides both the firm and the employee a careful

evaluation, rather than a snap judgement of an employee's

performance. Many firms use performance appraisals to plan

placements and transfers and to provide input into decisions

regarding salary increases, promotions, and transfers. 

Finally, performance appraisals may be used as a basis for

the coaching and counselling of individual employees by

their superiors. To summarize the uses of performance

appraisal:

Performance improvement

Compensation

Placement

Training & development needs assessment

Career planning

Job design error detection

CHARACTERISTICS OF AN APPRAISAL SYSTEM

Performance appraisal cannot be implemented successfully

unless it is accepted by all concerned. There should be a

common and clear understanding of the distinction between

evaluation and appraisal. As Patten (1982) argues,

evaluation aims at 'objective' measurement, while appraisal

includes both objective and subjective assessment of how

well an employee has performed during the period under

review. Thus performance appraisal aims at 'feedback,

development and assessment.' The process of performance

appraisal should concentrate on the job of an employee, the

environment of the organization, and the employee him- or

herself. These three factors are inter-related and inter-

dependent. Therefore, in order to be effective, the appraisal

system should be individualized, subjective, qualitative and

oriented towards problem-solving. It should be based on

clearly specified and measurable standards and indicators of

performance. Since what is being appraised is performance

and not personality, personality traits which are not relevant

to job performance should be excluded from the appraisal

framework.

Some of the important considerations in designing a

performance appraisal system are:

Goal The job description and the performance goals

should be structured, mutually decided and accepted by both

management and employees.

Reliable and consistent Appraisal should include both

objective and subjective ratings to produce reliable and

consistent measurement of performance.

Practical and simple format The appraisal format should

be practical, simple and aim at fulfilling its basic functions.

Long and complicated formats are time consuming, difficult

to understand, and do not elicit much useful information.

Regular and routine While an appraisal system is

expected to be formal in a structured manner, informal

contacts and interactions can also be used for providing

feedback to employees.

Participatory and open An effective appraisal system

should necessarily involve the employee's participation,

usually through an appraisal interview with the supervisor,

for feedback and future planning. During this interview, past

performance should be discussed frankly and future goals

established. A strategy for accomplishing these goals as well

as for improving future performance should be evolved

jointly by the supervisor and the employee being appraised.

Such participation imparts a feeling of involvement and

creates a sense of belonging.

Rewards Rewards - both positive and negative - should

be part of the performance appraisal system. Otherwise, the

process lacks impact.

Feedback should be timely Unless feedback is timely, it

loses its utility and may have only limited influence on

performance.

Impersonal feedback Feedback must be impersonal if it

is to have the desired effect. Personal feedback is usually

rejected with contempt, and eventually de-motivates the

employee.

Feedback must be noticeable The staff member being

appraised must be made aware of the information used in

the appraisal process. An open appraisal process creates

credibility.

Relevance and responsiveness Planning and appraisal

of performance and consequent rewards or punishments

should be oriented towards the objectives of the programme

in which the employee has been assigned a role. For

example, if the objectives of a programme are directed

towards a particular client group, then the appraisal system

has to be designed with that orientation.

Commitment Responsibility for the appraisal system

should be located at a senior level in the organization so as

to ensure commitment and involvement throughout the

management hierarchy.

WHAT IS THE ROLE OF PERFORMANCE APPRAISAL?

We've seen from previous discussions, that people are one

of a company's most valuable assets. While most assets

depreciate over time, people, viewed as assets, may actually

appreciate. One of the manager's major responsibilities is to

improve and update the knowledge and skills of employees

-- appreciation of assets. Performance appraisal plays a

significant role as a tool and technique of organizational

development and growth. In essence, effective appraisal

systems provide both evaluation and feedback.

The main aim of the evaluation is to identify performance

gaps -- when performance does not meet the organizational

standards -- whereas feedback is necessary to inform

employee about those performance gaps.

From the employee's perspective, performance appraisal

informs them about what is required of them in order to do

their jobs, it tells them how well they have achieved those

objectives and helps them take corrective action to improve

their performance, and, finally, it may reward them for

meeting the required standards.

The firm, on the other hand, needs a performance appraisal

system in order to establish principles of managerial

accountability. Clearly, where employees are given

responsibilities and duties, they need to be held

accountable. One of the functions of performance appraisals

is to ensure that people are accountable for their

organizational responsibilities.

Perhaps the most significant benefit of performance

appraisals is the opportunities they provide supervisors and

subordinates to have one-on-one discussions of important

work issues. During appraisals, subordinates and

supervisors can focus on work activities and goals, identify

and correct existing problems, and encourage better future

performance.

Performance Appraisal and Motivation

Motivational research has recognized the power of 

recognition as an incentive (see Maslow and the Expectancy

Theory of Motivation). Performance appraisals provide

employees with recognition for their work efforts.  The

appraisal system provides the supervisor with an opportunity

to indicate to employees that the organization is interested in

their performance and development. This recognition can

have a positive motivational influence. on the individual's

sense of worth, commitment and belonging.

Performance Appraisal and Training and Development

Performance appraisals identify performance gaps. As such,

they provide an excellent opportunity for a supervisor and

subordinate to recognize and agree upon individual training

and development needs.

Performance appraisal discussion may identify the presence

or absence of work skills. Further, the need for training can

be made more relevant if attaining the requisite job skills is

clearly linked to performance outcomes. Consolidated

appraisal data can also help form a picture of the overall

organizational training requirements.

Performance Appraisal and Recruitment

Recruitment and selection procedures need to be evaluated.

Appraisal data can be used to monitor the success of a firm's

recruitment and selection practices. From this data, the firm

can determine how well employees who were hired in the

past are performing.

Performance Appraisal and Employee Evaluation

Employee evaluation is a major objective of performance

appraisal. Given the major functions of management --

planning, organizing, leading and controlling -- it is clear that

evaluations (controlling) need to be done.

At its most basic level, performance appraisal is the process

of examining and evaluating the performance of employees.

However, the need to evaluate is also a source of tension as

evaluative and developmental priorities appear to clash. 

Some management experts have argued that appraisal

cannot serve the needs of evaluation and development at

the same time.

Performance Appraisal and Total Quality Management (TQM)

With the advent of TQM (Total Quality Management) and the

extensive use of teams, traditional performance appraisal

systems have come under some criticism. For example,

rather than motivating employees, conflict may be created

when appraisals are tied to merit pay and when that merit

pay is based on a forced ranking.

W. Edwards Deming, the founder of total quality

management (TQM) has long been associated with the view

that performance appraisals ought to be eliminated. Many

TQM proponents claim that performance appraisals are

harmful.

However, there is  no doubt that, without safeguards such as

appropriate design, adequate administrative support,

comprehensive job analysis / description and training for

appraisers, conventional performance appraisal processes

risk becoming just another of the many bureaucratic rituals

supervisors and subordinates must endure.

THE PERFORMANCE MANAGEMENT CYCLE

Objectives of appraisal

To review the performance of the employees over a

given period of time.

To judge the gap between the actual and the desired

performance.

To help the management in exercising organizational

control.

Helps to strengthen the relationship and communication

between superior – subordinates and management –

employees.

To indentify the need of training and development

programs for the employees. To review the performance of

the employees over a given period of time.

To judge the gap between the actual and the desired

performance.

To help the management in exercising organizational

control.

Helps to strengthen the relationship and communication

between superior – subordinates and management –

employees.

To diagnose the strengths and weaknesses of the

individuals so as to identify the training and development

needs of the future.

To provide feedback to the employees regarding their

past performance.

Provide information to assist in the other personal

decisions in the organization.

Provide clarity of the expectations and responsibilities

of the functions to be performed by the employees.

To judge the effectiveness of the other human resource

functions of the organization such as recruitment, selection,

training and development.

To reduce the grievances of the employees.

Some specific positive objectives of performance appraisal are:

To review past performances

To assess training needs

To help develop individuals

To audit the skills within an organization

To set targets for future performance

To identify potential for promotion

Types of AppraisalsThe following is a description of the types of performance

appraisals:

1. Probationary/Trial - End of probation or trial period.

2. Extension of Probation Period - At time of request

for extension.

3. Annual - One year from date of last review.

4. Special - Beginning at end of special probation or

when performance substantially dropped during a review

period.

5.Change in Classification Promotion/ demotion/

transfer, etc.

6. Separation - Separation from County service, when

it has been more than nine (9) months since the affected

employee's performance has been evaluated

DIFFERENCE BETWEEN PERFORMANCE APPRAISAL ANDPERFORMANCE MANAGEMENT SYSTEM:

Performance Appraisal Performance management

No customer involvement

Static format

Activities Based

Results Only

Job Description Focus

Annual Event

Top down Evaluation

Retrospective Evaluation

Direct customer involvement

Flexible Format

Objective/ Competencies Based

Result/ process Measurement

Linked To Strategic Priorities

Team Participation

On Going Interaction

Multiple Resources of feedback

Retrospective and Prospective

Performance Appraisal is related to the targets

assigned to the employee.

PERFORMANCE APPRAISAL PREPARATION

Appraisal systems should be job-related, have standards, be

practical, and use dependable measures. Considering that

progression along pay scales might be effected by appraisal

outcomes, any such system must be perceived to be (and

actually be) fair and objective.

Some characteristics to look for in an appraisal process are:

Objectivity / measurability

Work relatedness of measures

Measures are within the appraisee's control

Measures are attainable

Contains an appeal mechanism

Management commitment to the entire process --

training provided where necessary

Be simple and not take appraisers nor appraisees

unduly away from their core tasks

Be sophisticated enough to ensure appraisees'

perceptions of fairness

Measuring clear competencies only

Provides a feedback mechanism with a link to training

and development

PERFORMANCE STANDARDS

Performance standards are the benchmarks against which

performance is measured. These standards must be based

on job analyses and be directly related to the desired results

of each job.

If pay increases are dependent upon the outcome of the

performance appraisal, there can be no room for subjective,

nebulous performance indicators. Great divisiveness,

jealousy and demotivation can be caused by poor

performance pay systems using inadequate or inappropriate

benchmarks.

THE PERFORMANCE APPRAISAL CYCLE Discussion

Informal

Review

Preparation

The preparation section of the cycle covers the pre-meeting

work of the appraisal and the appraise who both review

results in the light of previously agreed objectives and decide

on any matters they want to raise at the appraisal

discussion.

The formal appraisal section of the cycle is concerned

with:

Conducting the appraisal discussion;

Overcoming any problem emerging during the

appraisal.

Concluding the appraisal by recording the results,

agreeing action plans and, as necessary, obtaining another

view from the appraiser’s manager to ensure that a fair and

thorough appraisal has taken place.

The information review section of the cycle consists of:

Information discussions that take place as and when

required and may involve updating objectives or

performance plans;

The process of coaching and counseling, which help to

implement the development and performance improvement

programme.

When appraisal should take place?

Formal appraisal discussions are often held annually but

some fast moving organizations prefer to have them twice a

year or even more frequently, say at quarterly intervals.

When employees are working on some projects, as in a

consultancy firm, there may be an appraisal after every

assignment. Ensuring that appraisal is a continuing process.

To ensure that appraisal is not just seen as a one- a-year

event to be got over as quickly as possible it is necessary to

emphasize the continuing nature of the process in briefing

and training. Appraiser & appraiser should understand that

feedback & appraisal are in effect everyday occurrences.

PERFORMANCE APPRAISAL METHODS

1. Graphic rating scale

2. Paired Comparison

3. Forced choice approach

4.Easy Appraisal

5. BARS

6. Checklist method

7. Critical incident method

8. 3600 appraisal

9.Mixed method

Methods Graphic Rating Scale: A performance appraisal that rates

the degree to which the employee has achieved various

characteristics.

1)The graphic rating scale is the most common type of

appraisal used.

2)Various characteristics such as job knowledge or

punctuality are rated by the degree of achievement.

3)The rate usually receives a score of 1 to 5, with 5

representing excellent performance.

4)Some forms allow for additional comments.

Paired-comparison Approach: A performance appraisal

that measures the relative performance of employees in a

group.

1)This is a method of performance evaluation that results in

a rank ordering of employees to come up with a best

employee.

2)This type of approach measures the relative performance

of employees in a group.

Forced-choice Approach: A performance appraisal that

presents the appraiser with sets of statements describing

employee behavior; the appraiser must choose which

statement is most characteristic of the employee and which

is least characteristic.

Easy Appraisal: Sometimes the supervisor must write a

description of the employee’s performance. The easy

appraisal is often used along with other types of appraisals,

notably graphic rating scales. They provide an opportunity

for supervisors to describe aspects of performance not

thoroughly covered by an appraisal questionnaire.

The dis-advantage of this method is that their quality

depends on the supervisor’s writing skills.

Behaviorally Anchored Rating Scales: A performance appraisal in which the employee is rated on

scales containing statements describing performance in

several areas.

This is a method of performance appraisal that is tailored to

the organization and positions with in that organization.

Some organizations pay behavioral scientists or

organizational psychologists to create behaviorally anchored

rating scales.

A checklist appraisal is a record of performance, not an

evaluation by the supervisor.

It contains a series of questions about the employee’s

performance.

The supervisor checks boxes to answer the questions yes or

no.

The human resources department has a key for scoring the

items resulting in a rating of the employee’s performance.

Critical-incident Appraisal: A performance appraisal in

which the supervisor keeps a record of incidents that show

positive and negative ways the employee has acted; the

supervisor uses this record to assess the employee’s

performance.

Some of the important forms of ranking for performance

appraisal are given below, based on Oberg, 1972; and

Monga, 1983:

(a) Alteration ranking method The individual with the best

performance is chosen as the ideal employee. Other

employees are then ranked against this employee in

descending order of comparative performance on a scale of

best to worst performance. The alteration ranking method

usually involves rating by more than one assessor. The

ranks assigned by each assessor are then averaged and a

relative ranking of each member in the group is determined.

While this is a simple method, it is impractical for large

groups. In addition, there may be wide variations in ability

between ranks for different positions.

(b) Paired comparison The paired comparison method

systematizes ranking and enables better comparison among

individuals to be rated. Every individual in the group is

compared with all others in the group. The evaluations

received by each person in the group are counted and

turned into percentage scores. The scores provide a fair idea

as to how each individual in the group is judged by the

assessor.

(c) Person-to-person rating In the person-to-person rating

scales, the names of the actual individuals known to all the

assessors are used as a series of standards. These

standards may be defined as lowest, low, middle, high and

highest performers. Individual employees in the group are

then compared with the individuals used as the standards,

and rated for a standard where they match the best. The

advantage of this rating scale is that the standards are

concrete and are in terms of real individuals. The

disadvantage is that the standards set by different assessors

may not be consistent. Each assessor constructs their own

person-to-person scale which makes comparison of different

ratings difficult.

(d) Checklist method The assessor is furnished with a

checklist of pre-scaled descriptions of behaviour, which are

then used to evaluate the personnel being rated (Monga,

1983). The scale values of the behaviour items are unknown

to the assessor, who has to check as many items as she or

he believes describe the worker being assessed. A final

rating is obtained by averaging the scale values of the items

that have been marked.

(e) Behaviourally anchored rating scales (BARS) This is a

relatively new technique. It consists of sets of behaviourial

statements describing good or bad performance with respect

to important qualities. These qualities may refer to inter-

personal relationships, planning and organizing abilities,

adaptability and reliability. These statements are developed

from critical incidents collected both from the assessor and

the subject.

(f) Assessment centres This technique is used to predict

future performance of employees were they to be promoted.

The individual whose potential is to be assessed has to work

on individual as well as group assignments similar to those

they would be required to handle were they promoted. The

judgment of observers is pooled, and paired comparison or

alteration ranking is sometimes used to arrive at a final

assessment. The final assessment helps in making an order-

of-merit ranking for each employee. It also involves

subjective judgment by observers.

360-degree Performance Appraisal: Evaluating Employees

From All Angles

Traditional performance appraisals, as discussed above, can

be both subjective and simplistic. At times, they can also be

deemed to be "political". In an attempt to improve this

methodology, some companies have turned to 360-degree

appraisals. 360 appraisals pool feedback from a

department's internal and external customers to ensure a

broader, more accurate perspective of an employee's

performance.

360-degree performance appraisal is an attempt to answer

the question: "How can a supervisor evaluate an employee

he or she sees only a few hours each week?"

Using internal and external clients

360-degree performance appraisals offer an alternative by

which organizations may gain more useful performance

information about employees. Because all clients/customers

an employee comes into contact with can conceivably have

input into the performance appraisal, this methodology can

also makes them more accountable to their customers.

Using a courtroom metaphor, one could say that, rather than

having a single person play judge, a 360-degree appraisal

acts more like a jury. People who actually deal with the

employee each day have an opportunity to create a pool of

information from which the appraisal is written. Internal

clients may include supervisors, subordinates, co-workers,

and representatives from other departments. External

customers may include clients, suppliers, consultants and

customers.

Perceived fairness

Given the use of a wide variety of sources for information in

the 360-appraisal process, this method provides a broader

view of the employee's performance. Frequently, the

employee on whom the appraisal is being done (the ratee)

will feel that the process is more fair.

Validity

Very often, an employee's peers know their behaviors best.

Consequently, employees cannot hide as easily in 360-

degree appraisals.

Employee development

360-degree appraisal enables an employee to compare his

or her own perceptions of their work performance with the

perception of others. As such, the method facilitates

employee self-development. Feedback from one's peers is

more likely to lead to changed behaviors.

Accountability to customers

A 360-degree appraisal process provides a formalized

communication link between the employee being evaluated

and their customers. These people now have feedback into

the employee's performance rating. As such, the process is

likely to make the employee more accountable to his or her

various internal and external customers. Furthermore,

organizations can also use this feedback to create more

customer-oriented goals for the following year.

The raters: how many and who?

One issue employers must solve in implementing a 360-

degree appraisal program is determining how many raters

should be involved. Next, the organization must decide who

should do the rating. Generally speaking, less than five

raters limits the perspective while more than ten raters is

likely to make the appraisal system complex and time

consuming. A firm would be well advised to develop a

workable definition of what constitutes a peer, an internal

customer, an external customer, a supervisor, etc. For

example, to be useful, the customer ought to be one who

has significant interactions with the ratee.

Some organizations permit the ratee to develop a list of key

internal and external customers that he or she interacts with.

The ratee then recommends five to ten of these individuals

to serve as raters. In this process, the supervisor still retains

the ultimate responsibility for the appraisal and therefore

ensures that appropriate raters are selected. The ratee is

thus prevented from stacking the deck with supportive

customers.

Another option has the raters selected at random from the

ratee's team by a computer-generated system. Those

selected are then notified by E-mail to participate in the

appraisal.

Limitations on the use of external clients

An organization contemplating the use of the 360-degree

process must keep in mind that reviewing that organization's

employees' performance is not the customer's business. To

ensure the customers' cooperation, the process should be a

mutually beneficial process.

Furthermore, the various external customers would ideally

evaluate the ratee only on the behaviors or work incidents

that they have directly observed. This, of course, also holds

for internal raters.

Summarizing the data

Once all raters have supplied their appraisals, the

employee's supervisor is generally responsible for

summarizing the data and determining the final performance

rating.

After summarizing the data, the supervisor conducts the

formal appraisal interview with the ratee.

Another variation of the summary process makes the ratee

responsible for summarizing the feedback data from the

raters. The ratee then submits a summary analysis to his or

her supervisor. The ratee and the supervisor then meet to

determine the ratee's final performance rating and

development plan.

Rater confidentiality

Organizations must decide whether the feedback from the

various raters should be kept anonymous or be identified to

the employee. Sometimes raters give fuzzy feedback

because of the fear that the feedback might come back to

them.

One rule rule might be that no rater can give negative

feedback in the appraisal unless that rater has previously

given the feedback directly to the ratee. Most organizations

should start with a policy of confidentiality until sufficient

understanding, maturity and organizational trust is achieved.

Benefits of Performance appraisal

For the organization:

The organization comes to know the true position of the

employees working capacities and the problems they face

while working in the organization. This performance

appraisal system also acts as a motivating factor for the

employees, which helps the organization to get better

results.

For the appraise:

The appraise fells themselves an important part of the

organization, they get a chance to express their views in

front of their superiors; they get a platform to express their

ideas. The employee comes to know the truth about:

To what extent they have achieved their objectives.

In what respect their work has been most successful.

Are there any aspects of their work, which they have

not completed?

Are many other question, which make them assess rightly. ..

Guidelines for effective performance evaluation interviews...

emphasize positive aspects of employee performance

tell employee that the purpose is to improve

performance, not to discipline

conduct the review in private

review the performance formally at least annually (more

frequently for those performing poorly)

make criticisms specific

focus on performance, not personality

stay calm; do not argue

identify specific actions the employee can take to

improve performance

emphasize the evaluator’s willingness to assist the

employee’s efforts to improve performance

end by stressing positive

Appraisal Process

In order to obtain a better understanding of how the

performance appraisal has been put together by The

Corporation, the researcher has provided an overview of the

company’s performance appraisal process. The researcher

felt that the overview of the performance appraisal process

would be necessary, since the process provided a

framework for the performance appraisal.

PRE-APPRASIAL STEPS

The performance evaluation can be made for variety of

reasons counseling, promotions, salary increases,

administration or combination of these. It becomes very

necessary to begin by stating the objectives of evaluation

programs very clearly and precisely. The personal appraisal

system should address the question who, what, how of

performance appraisal.

These questions are the components of these appraisal

systems which are discussed below individually.

“WHO “OF THE APPRAISAL OR ‘’WHO’’ IS TO RATE .

The immediate superior, the head of the department or

any other can rate the performance of an individual. In

addition to this, sum organizations follow the system of self

appraisal and /or appraisal by peers. A group, consisting of

his senior, peers and subordinates, can do appraisal,

whoever is rating; he should be trained and impartial. In

most of the organizations the ratings is done by his

immediate superior who is considered the best person to

understand his subordinates strengths and weaknesses.

Now a day some organizations are following the method of

self-appraisal.

THE “WHAT”OF APPRAISAL

It is considered with

Creating and maintaining a satisfactory level of

performance of employees in their present job.

Highlighting employee’s needs and opportunities of for

personal growth and development.

Aiding in decision making for promotions, transfers,

layoff and discharges.

Promoting understanding between supervisors and his

subordinates.

Providing a useful criterion for determining the validity

of selections and training methods for attracting individuals

of higher caliber to the organization.

THE ‘WHEN’ OF APPRAISAL

The ‘when’ answers the query the frequency of appraisal?

The informal counseling should occur continuously but the

manager should discuss an employee’s work as soon as he

gets an opportunity to provide positive reinforcement and

use poor work as basis of training. The time and period of

appraisal differs according to the need and nature of the

organization.

THE ‘WHERE’ OF APPRAISAL

The where indicates the location where employee

should be evaluated? It is usually done at work place or

office of the supervisor.

THE ‘HOW’ OF APPRAISAL

Under this, the organization must decide what different

kinds of methods are available and which of these may be

used for performance appraisal. On the basis of comparative

advantages and disadvantages, the nature and philosophy

of management and the needs of an organization; the

method of appraisal is decided.

The performance appraisal process at the companies has

been stated by The Corporation as consisting of four inter-

related steps. The first step was to establish a common

understanding between the manager (evaluator) and

employee (evaluatee) regarding work expectations; mainly,

the work to be accomplished and how that work was to be

evaluated. The second step was an ongoing assessment of

performance and the progress against work expectation.

Provisions were made for the regular feedback of

information to clarify and modify the goals and expectations,

to correct unacceptable performance before it was too late,

and to reward superior performance with proper praise and

recognition. Step three was the formal documentation of

performance through the completion of a performance and

development appraisal form appropriate to the job family.

The final step being the formal performance and

development appraisal

discussion, based on the completed appraisal form and

ending in the construction of a Development Plan. Also

noted was that The Corporation considered the performance

appraisal process to have been within the larger content of

the other performance related processes of work planning

and salary action.

Reasons for Performance Appraisal Failures

Where performance appraisal fails to work as well as it

should, lack of support from the top levels of management is

often cited as a major contributing reason.

Opposition may be based on political motives, or more

simply, on ignorance or disbelief in the effectiveness of the

appraisal process.

It is crucial that top management believe in the value of

appraisal and express their visible commitment to it. Top

managers are powerful role models for other managers and

employees.

Those attempting to introduce performance appraisal, or

even to reform an existing system, must be acutely aware of

the importance of political issues and symbolism in the

success of such projects.

Employee Participation

Employees should participate with their supervisors in the

creation of their own performance goals and development

plans. Mutual agreement is a key to success. A plan wherein

the employee feels some degree of ownership is more likely

to be accepted than one that is imposed. This does not

mean that employees do not desire guidance from their

supervisor; indeed they very much do.

Performance Management

One of the most common mistakes in the practice of

performance appraisal is to perceive appraisal as an isolated

event rather than an ongoing process.

Employees generally require more feedback, and more

frequently, than can be provided in an annual appraisal.

While it may not be necessary to conduct full appraisal

sessions more than once or twice a year, performance

management should be viewed as an ongoing process.

Frequent mini-appraisals and feedback sessions will help

ensure that employees receive the ongoing guidance,

support and encouragement they need.

Of course many supervisors complain they don't have the

time to provide this sort of ongoing feedback. This is hardly

likely.What supervisors really mean when they say this is

that the supervision and development of subordinates is not

as high a priority as certain other tasks.

In this case, the organization may need to review the

priorities and values that it has instilled in its supervisory

ranks. After all, supervisors who haven't got time to monitor

and facilitate the performance of their subordinates are like

chefs who haven't got time to cook, or dentists who are too

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

If appraisal is viewed as an isolated event, it is only natural

that supervisors will come to view their responsibilities in the

same way. Just as worrying, employees may come to see

their own effort and commitment levels as something that

needs a bit of a polish up in the month or two preceding

appraisals.

Performance appraisals purpose - and how to make it easier

Performance appraisals are essential for the effective

management and evaluation of staff. Appraisals help

develop individuals, improve organizational performance,

and feed into business planning. Formal performance

appraisals are generally conducted annually for all staff in

the organization. Each staff member is appraised by their

line manager. Directors are appraised by the CEO, who is

appraised by the chairman or company owners, depending

on the size and structure of the organization.

Annual performance appraisals enable management and

monitoring of standards, agreeing expectations and

objectives, and delegation of responsibilities and tasks. Staff

performance appraisals also establish individual training

needs and enable organizational training needs analysis and

planning.

Performance appraisals also typically feed into

organizational annual pay and grading reviews, which

commonly also coincides with the business planning for the

next trading year.

Performance appraisals generally review each individual's

performance against objectives and standards for the trading

year, agreed at the previous appraisal meeting.

Performance appraisals are also essential for career and

succession planning - for individuals, crucial jobs, and for the

organization as a whole.

Performance appraisals are important for staff motivation,

attitude and behaviour development, communicating and

aligning individual and organizational aims, and fostering

positive relationships between management and staff.

Performance appraisals provide a formal, recorded, regular

review of an individual's performance, and a plan for future

development.

Job performance appraisals - in whatever form they take -

are therefore vital for managing the performance of people

and organizations.

Managers and appraisees commonly dislike appraisals and

try to avoid them. To these people the appraisal is daunting

and time-consuming. The process is seen as a difficult

administrative chore and emotionally challenging. The

annual appraisal is maybe the only time since last year that

the two people have sat down together for a meaningful one-

to-one discussion. No wonder then that appraisals are

stressful - which then defeats the whole purpose.

Appraisals are much easier, and especially more relaxed, if the boss meets each of the team members individually and regularly for one-to-one discussion throughout the year.

Meaningful regular discussion about work, career, aims,

progress, development, hopes and dreams, life, the

universe, the TV, common interests, etc., whatever, makes

appraisals so much easier because people then know and

trust each other - which reduces all the stress and the

uncertainty.

Put off discussions and of course they loom very large.

So don't wait for the annual appraisal to sit down and talk.

The boss or or the appraisee can instigate this.

If you are an employee with a shy boss, then take the lead.

If you are a boss who rarely sits down and talks with people -

or whose people are not used to talking with their boss - then

set about relaxing the atmosphere and improving

relationships. Appraisals (and work) all tend to be easier

when people communicate well and know each other.

So sit down together and talk as often as you can, and then

when the actual formal appraisals are due everyone will find

the whole process to be far more natural, quick, and easy -

and a lot more productive too.

Chapter-2

Company Profile

PROFILE 2008

COMPANY PROFILE - 2007

WELCOME TO HOLLAND L.P

On behalf of all our employees, the following overview is intended to familiarize you with the history, accomplishments, goals, and visions of our company.

In addition to maintaining our domestic market leadership position in electric flash butt rail welding systems and proprietary freight car components, Holland has also been busy expanding its presence in new areas.

In 2007 we continued to progress our Quality Initiative as our Welding Group begins ISO 9001:2000 Quality Assurance program implementation with the Mobile Operations Division. Most recently, in the first quarter of 2007, the Welding Group’s Fixed Plant Division achieved ISO 9001:2000 registration. The Fixed Plant Division joins the current list of our business groups working busily to provide improved services & products to our customers - the Transportation Technology Division (HoTT – ISO 9001:2000 & AAR M-1003), the Railway Measurement Systems & Services Division (RMSS – ISO 17025:2005), the M-Bar-D Division (ISO 9001:2000 & AAR M-1003) and the Holland Equipment Division (HED – ISO 9001:2000).

We continued to aggressively expand our mobile welding contracting fleet to meet ever-increasing demands for these services. By early 2008, we will have 63 Mobile welders and 54 puller lites in our already world’s largest rail welding fleet.

We are now operating ten TrackSTAR® Track Testing Vehicles in the Railway Measurement Systems and Services Division. In conjunction with our TrackSTAR® business we also now offer Rangecam track planning software and Internet data management services to our customers.

Global rail expansion and modernization programs progressed at an unprecedented pace in 2007, led by growth of the two Asian giants, China and India.

Holland’s Equipment Division, with its unparalleled combination of equipment options, application knowledge and sale & service support, provide solutions and support for railroads and railway construction contractors across the world.

As part of Holland’s commitment to provide the most reliable flash butt-welding equipment and to help our customers achieve maximum output in each welding application, Holland introduced its Super Rail Puller technology into Europe in 2006.

In other areas of the world, Holland provided an integrated welder and puller machine, low rail consumption welding technology and other options.

Our HOTT Division, a long term supplier of freight car parts that eliminate wear and secure loads, has made a major commitment to product protection systems that are designed to eliminate damage, minimize the use of dunnage and provide a safer environment for loading personnel. From a strategic perspective,

over the past few years this division has transitioned itself from a supplier of railcar components to a business that provides “engineered solutions for railcars.” In 2006, the HOTT Division introduced its Cargo Sled product offering intended to provide damage free shipping of various commodities in 20 containers via intermodal unit trains. 2007 also saw the initiation of testing of our Automatic Twist Lock in China with the Ministry of Rail (MOR) for both normal and high-speed freight train applications. Holland’s Automatic Twist Lock is already an industry standard in North America and India.

In 2007 our M-Bar-D Division embarked on an aggressive locomotive retrofit plan with BNSF in Bakersfield, CA by equipping Smart Start Systems in their equipment. This program is expected to continue and expand to other sites in 2008.

Holland is a third generation family owned and operated business. Our work force, which was the subject of a recent Chicago Tribune article, is experienced and possesses great technical and operating skills. Our professional management is committed to the long-term strategic view. It is through the efforts of our employees that we will meet our long-term goals.

We welcome the opportunity to meet your needs and earn your business.

Sincerely,

Philip C. Moeller

President

COMMITMENT

Holland will work in partnership with our customers, employees, and owners to meet their requirements.

We will not be satisfied with anything less, and we will continually improve our processes until those requirements are met.

We will achieve these objectives with the highest degree of integrity and professionalism, and in a manner that will earn the respect of each group to which we are committed.

Commitment to Customers

Holland will understand and conform to our customer’s requirements by providing defect-free products and services.

We will provide our customers with products and services that are of the highest available value.

Commitment to Employees

Holland will provide our employees with a secure, safe, and enjoyable work environment.

In order to meet commitments to our customers and owners, we require employees who continually improve their performance levels. To attract and retain this caliber employee, we will offer a competitive compensation and benefits package, including profit sharing funded by the company based upon company profitability, and individual incentive compensation plans based on performance where appropriate.

In addition, we will provide opportunities for career advancement. Filling these positions from within the organization will be the preferred option.

Commitment to Owners

Holland will steadily increase pre-tax profits over the long term while maintaining a reasonable return on investment.

We will safeguard the assets of the company by exercising a high level of risk control.

Above all, Holland will be an organization - its products, its people, and its reputation – in which our owners can take pride.

HISTORY

In 1935, Cyrus Holland founded the Holland Company. The company’s first product was a tightly wound volute for freight cars. Over the past half-century, many other products have been developed by the Holland Company. These include the line of Holland resilient airbrake hose supports, the Hollube® line of freight car anti-wear, anti-friction products, twist-lock load securement devices, and product protection systems.

The Hollube® product offering has become an industry standard. The principle of using a tough, low co-efficient of friction polymer material versus steel components has greatly minimized wear and enhanced product life. This performance, coupled with extensive warranties of up to 10 years in length, provide the most economical choice in the industry.

In 1966, Holland acquired the assets and personnel of Matisa Railweld, Inc., who pioneered the use of electric flash butt-welded rail in the United States and Canada.

This welding system, originally designed and built abroad, is now manufactured and assembled by the Holland Company. Over the years the system has proven to be the most reliable and productive in the industry, enabling Holland to set the standard for mobile welding on a worldwide basis.

Under Holland management, the newly formed Railweld Division went on to become the leading railwelding contractor designing and building railwelding facilities, rail reclamation facilities, and a full line of support equipment.

1972 saw Holland distinguish itself by being the first to commission a self-propelled rail car, which carried a portable electric flash butt welding machine. Since 1972, the Holland Company has remained the leader in mobile flash butt welding.

In 1979, Holland introduced the first road/rail mobile welding unit dubbed the "MobileWelder’s”. Since then, the MobileWelder has evolved through several major model changes including the versatile hi-rail version.

In 1985, an additional advancement of the flash butt welding process was the welding of overhead crane and stacker crane rail welding.

In 1986, Holland acquired the railway product portion of the McLean-Fogg Company. This product line of securement systems is now an important part of the Holland Company's extensive line of products serving the mechanical segments of the railway industry.

In 1992, Holland introduced a line of high capacity pullers that are used in repair and closure welding. We also acquired Lewis Rail Service and combined our rail welding plant operations with those of Lewis to establish the Lewis Rail Service Division.

Holland’s success has come from its commitment to quality and innovation. Our track record in railwelding is highlighted below.

Since 1966 we have made over 26 million welds, which set the standard for railwelding on a worldwide basis.

Developed 72, 90 and 130-ton capacity welder heads to meet the ever changing needs of the marketplace.

Developed a wide range of independently operated High Capacity Pullers including 80, 160, and 280-ton machines.

Applied the technology, quality, and productivity of Plant Welding to In-Track Welding and Porta-Plant Welding.

Perfected a technique for year-round Flash Butt Welding along with the development of Repair Welding.

Developed and marketed the hi-rail or road/rail welding system, including a 40-foot, ISO, intermodal containerized unit.

Introduced weld monitoring and computer control systems, Intelliweld®, that assure highest quality and 21st century data analysis capability.

Increased safety on the job site by designing an out-of-the-way overhead Jib Crane.

1995 saw Holland broaden its product by offering TrackSTAR®, a patented road/rail track testing inspection vehicle have served over 80 Class 1 railroads, regionals, short lines and transits throughout North America and Mexico. Holland's track testing capabilities include inertial based geometry, rail profile and gauge restraint (GRMS) testing.

In 1999 Holland introduced the first digitally controlled flash butt rail welding control system, the Intelliweld®. We also introduced the Data Locker for mobile welders that replace the paper, pen and ink chart recorder.

In early 2000, our HOTT Division, in conjunction with our Mobile Operations Team, embarked on one of the most ambitious projects in Holland history. Based on a commitment from the Burlington Northern Santa Fe, Holland Company set up an operation in Modesto, California to equip 1300 plus insulated box cars with Holland’s patented mini snugger product protection system. This system not only significantly reduced costs throughout the distribution channel, but most importantly insured damage free shipments on a consistent basis. Ten months later the project was completed resulting in a satisfied customer while meeting our projected budget and time frames; a testimony to the varied capabilities of the Holland Company.

On January 2, 2002, M-BAR-D Rail Car Tech, Inc. and General Leasing Corporation were acquired by Holland. M-BAR-D Rail Car Tech, Inc. and General Leasing Corporation are headquartered in Fargo, North Dakota and were founded in 1992 by William G. Dahlin and William S. Pladson. M-Bar-D along with the HOTT Division now comprise Holland’s Mechanical Railway Group.

In December 2002, Holland’s Track Testing Services Division accomplished FRA acceptance of TrackSTAR’s® Gauge Restraint Measurement System (GRMS) for use by railroads for “waiver” track. TrackSTAR® is the only GRMS FRA accepted hi-rail vehicle in the world. This technology coupled with capability to provide full geometry and rail profile measurement makes Holland’s TrackSTAR® unique in the rail industry.

In 2004, Holland Track Testing Services Division introduced the TrackSTAR-TTV (transit testing vehicle) that has the capability to test standard or wide gauge properties, through subway tunnels and sharp curves, and the TrackSTAR® -Heavy testing units build on the Brandt solid axle hi-rail system for higher speed testing and improved productivity for our freight customers. The division also achieved ISO 17025:1999 accreditation – the first GRMS testing company in North America to do so.

Through Infostar, customers access their truck testing data over the Internet to Holland data storage computers in Crete, IL and have full access to Rangecam Analyst Software.

In 2004, Holland acquired the assets of E.O. Paton International Holding, Inc., a Canadian based worldwide supplier of flash-butt rail welding equipment; thus complementing and expanding the Holland Equipment Division product line. Holland now offers the most comprehensive line of flash butt rail welding equipment in the world. Only Holland offers customers the choice of selecting welding equipment that is most suitable for their specific application requirements.

In 2005 the M-Bar-D Division designed, constructed, and began operating a coal unloading, storage, and trucking operation in Ardoch, ND that services 5 American Crystal Sugar plants with deliveries in excess of 700,000 tons of coal annually.

In 2007 our Fixed Plant Welding Division achieved ISO 9001:2000 registration.

In 2007 the Railway Measurement Systems & Services Division (RMSS) completed all requirements for reaccredidation for ISO 17025-2005. The division was renamed recognizing the growth of the business beyond its origins as only Track Testing Services. Additionally, in early 2008 RMSS completed the acquisition of Industrial Metrics and the Rangecam rail and track planning software.

HOLLAND COMPANY OPERATING DIVISIONS

RAILWELDING DIVISION:

Responsible for all in-track Mobile rail welding and related operations, including turnkey labor support to meet customers requirements. This division is also responsible for crane and industrial application rail welding operations. A total of 64 Mobile, Porta Plants and an All Terrain Mobile unit plus 70 rail pullers provide the largest contracting rail welding service in the world.

This division is also responsible for all Fixed plant rail-welding operations. Holland has five of it's own rail trains and three CWR unloader units which provide efficient and timely service to our valued customers.

The fixed plants are ISO 9001:2000 certified.

Plants locations include:

Markham, IL

Denison, TX

Pueblo, CO

Independence, OR

RAILWAY MEASUREMENT SYSTEM & SERVICES DIVISION:

Responsible for all track testing, software, data management services and related operations. RMSS provides track strength (GRMS), track geometry, and rail profile measurement contract services with it’s heavy-hi-rail TrackSTAR® units to Class 1, Regional, Shortline and Transit owners throughout North America and Mexico. The Track Testing Services Group of RMSS has a fleet of operating TrackSTAR® vehicles with skilled crews that deliver both electronic and hard copy strip charts, exception reports, and post-processing/planning reports. TrackSTAR® vehicles can test track at speeds up to 40 mph deliveringthe potential to test over 100 track miles in a normal workday. TrackSTAR-TTV (transit testing vehicle) provides full geometry, rail profile and active gauge testing of standard and wide-gauge transit properties. RMSS also provides Rangecam track, rail and wheel measurement and planning software and Infostar data management services including data storage, protection, and access via the Internet.

RMSS is ISO 17025:2005 certified.

RAILROAD MECHANICAL GROUP

1.1.1.1.1 THIS GROUP IS COMPRISED OF OUR HOTT AND M-BAR-D DIVISIONS

TRANSPORTATION TECHNOLOGY DIVISION (HOTT):

This division is committed to providing engineered solutions to railcar builders, owners and shippers, with quality products and services developed in anticipation of their needs.

Utilizing the latest technologies the division designs, manufactures and markets railroad car components and systems that minimize wear, reduce weight, secure containers/equipment and protect ladings. Popular trade names include Hollube®, Automatic Twist Lock®, Mini-Snuggers™, Coil Snugger, Load Snuggers, Door Edge Protection, (DEP) and Cargo Sled.

Holland railcar components can be found on most freight cars in a variety of applications. Our automatic twist locks and low profile locks possess unlimited approval from AAR and are built in conformance to AAR Spec M 952-04. Together they represent the “lock” of choice in the intermodal industry whether moving

valuable cargo or refuse throughout North America and selected international markets.

Our Hollube® composite product offering minimizes wear providing extended component life, provides reduced weight allowing greater car capacity at prices equal to or below equivalent steel components.

Holland’s patented “load snugger” system features unique anchor designs, layouts and web strapping to protect various lading while eliminating the need for expensive to maintain bulkheads. Currently, in excess of 10,000 boxcars have been equipped with this patented system.

The division has been awarded TTX’s preferred supplier award (SECO) several times and is M-1003 and ISO-9001-2000 certified.

M-BAR-D DIVISION (MBD)

M-BAR-D is a diverse division serving the rail and industrial markets with services that range from railcar cleaning, repair and inspection, locomotive service, derailment material recovery, as well as bulk material transfer and building of specialized equipment.

M-BAR-D FACILITIES INCLUDE:

Car Repair and Inspection

Gregg’s, OH

Norfolk, NE

Newport WA

Wichita Falls TX

Car Cleaning

Greggs OH

Birmingham AL

Kansas City MO

Newport WA

Lehigh ND

Locomotive Servicing

Chicago IL

Green Bay WI

Material Handling (Transloading)

Ardoch, ND

Fargo-Moorhead

Crookston MN

Hillsboro ND

Drayton ND

East Grand Forks ND

Special Projects

Bakersfield, CA Spokane, WA

M-BAR-D services its customer base via 19 locations and continues to grow throughout North America. Major customers include all major Class 1 railroads, regionals, short lines, private car owners and industrial processing plants.

The division is ISO-9001:2000 registered as well as M-1003 certified for car repair.

EQUIPMENT DIVISION (HED):

Responsible for the design, development, and manufacture of rail welding equipment, rail and CWR handling and processing equipment, track testing services equipment, and railroad maintenance of way equipment for both internal and external customers. Products manufactured by the Equipment Division include Holland's MobileWelder® in track flash-butt welding machine, containerized welding units, All-Terrain MobileWelders® (ATMW), rail pullers, slow bend press machines, welding plant equipment, rail grinders and polishers, CWR Unloader units, Railtrains, Pick-Up units and TrackSTAR®.

The HED division is responsible for equipment start-up, customer training, field service and customer support.

Operating under an accredited quality program meeting the requirements of ISO 9000:2001, the Holland Equipment Division is registered to provide “Design, Manufacture, and Supply of Equipment, Parts, and Services for the Railroad Industry”.

INTERNATIONAL SALES

Over the last 10 years, Holland has expanded its marketing beyond North America. Holland now maintains a global presence by providing electric flash butt welding and rail testing services as well as welding and testing equipment, rail delivery trains, consulting services, and freight car components to customers around the world.

2 ArgentinaAustralia

Brazil

Canada

Chile

China

Columbia

England

Estonia

France

Guinea, West Africa

Hong Kong

Hungary

India

Indonesia

Iran

Iraq

Japan

Kenya

Korea

Malaysia

Mexico

Mauritania

Netherlands

New Zealand

San Juan Puerto Rico

Singapore

South Africa

Switzerland

Taiwan

Thailand

Venezuela

DOMESTIC MOBILE RAIL WELDING PLANTS

2.1.1.1 MANUFACTURED, SOLD AND SERVICEDBY HOLLAND L.P.

MobileWelder®

3 BNSFCanadian National

CSX

QNS&L

Union Pacific

3.1.1.1 HIGH CAPACITY PULLER

4 BNSFCanadian National

Union Pacific

4.1.1.1 PALLETIZED PLANTS

5 New York City Transit AuthoritySoutheastern Pennsylvania Transportation Authority

CONTRACT WORK EXPERIENCE

HOLLAND MobileWelder® VEHICLES

(Sampling of our customers)

RAILROADS

Alaska Railroad

6 Allegheny RailroadAmtrak

Australian National Railroad

Barclay Mowlem (Construction Australia)

Bay Line Railroad

Belt Railway Company of Chicago

Black Mesa and Lake Powell

Boke Mining, West Africa

Boston & Maine

Burlington Northern Santa Fe

Canadian National

Canadian Pacific

Chicago Central & Pacific

Chicago & Illinois Midland

Chicago South Shore & South Bend

Consolidated RailCorp. (Conrail)

CSX

D&O Railroad

DM & E

DMIR

Elgin, Joliet & Eastern

F.E.C.

Grand Trunk Western Railroad

Illinois Central

Indiana Harbor Belt Railroad

Kansas City Southern Railroad

Long Island Railroad

MidSouth

Midwest Railroad

Monongahela Railroad

Montana Rail Link

New York Susquehanna & Western Railroad

NICTD

Norfolk Southern

Pacific Northern Rail (Canada)

Paducah & Louisville Railroad

Peoria and Pekin Railway

Quebec North Shore & Labrador

7 Quebec Cartier Mining

8 Red River ValleyUnion Pacific Railroad

9

WELDING FOR CONTRACTORS

(Sampling of contractors)

9.1.1.1 Member of National Railroad Contractor’s Association

A&K Railroad Material

Acme Construction

Amtrac RR Contractor

Atlas RR Contractors

Armond Cassil

Baker Heavy & Highway

Balfour Beatty

California Engineering

Cameron Monterrey Construction

Carillion

Central Engineering

Central Maintenance Corp.

Comtrak

Crane America

Delta Construction

Emecon Construction

Gantrex

Green Construction

Fluor Daniel

Ford Motor Co.

Fox Contracting Co.

H & H Engineering

Herzog Contracting Co.

Hollier Engineering & Construction Co.

Homer J. Olsen

Ispat Inland Steel

Jarvis

J.M.Foster

J.A.Placek

J.F.White

Kvaerner Songer

Kiewit Pacific

L.B.Foster

MARTA Contractors

McLean Construction Co.

Merit Railroad Contractors

Midwest Construction

Morris Material Handling

Modern Continental

Morrison Knudsen

O’Keefe Contracting

Olsen Corporation

P.E.L.I.

Queen City Railroad Contractor

Railroad Construction Corp.

Railroad Service Corporation

Republic Steel

Shell Oil

Stacy & Witbeck

Steel Dynamics

Sumitomo

Swanson Contracting

Timken

Track Rail UK

United States Air Force

Volker Stevin Rail & Traffic

Western Erectors

Yonkers Construction

10

11

12

RAIL WELDING FOR

TRANSITS/PORT AUTHORITIES/GOVERNMENT AGENCIES

(Sampling of customers)

Calgary Transit

Chicago Transit Authority

Construmetro (Monterrey Mex. Transit)

DART

Long Island Railroad

MARTA Transit (Atlanta)

Massachusetts Bay Transit Authority

Metra - Chicago

New Jersey Transit

Network Rail

NIRC-RTA-Chicago

NYCTA

PATH

Port Authority of Baltimore MD

Sacramento LRT

San Juan, P.R. Transit

San Diego LRT

Southeastern Pennsylvania Transit Authority

TTC

Tri-County Metro Transit District of Oregon

U.S. Naval Shipyard

W.M.A.T.A. (Washington, D.C.)

INDUSTRIAL/UTILITIES

(Sampling of customers)

Abex

Alcoa

Armco Steel

Austeel

Bethlehem Steel

Chapparel Steel

Dofasco Steel

Geneva Steel

Houston Power & Light

Inland Steel Corporation

International Paper

Kennedy Space Center

Lone Star Steel

LTV Steel

13

MITSUI

Namato

National Steel

Northwestern Steel & Wire

Nucor Steel

Orlando Public Utility

Robe River Mining (Australia)

Timken Bearing Company

U.S. Catalytic

U.S. Steel

Western Fuels

WCI Steel

Weyerhauser

Yankeetown Dock

13.1.1 HOLLAND TrackSTAR® CONTRACT TRACK TESTING VEHICLES

(We have over 150 Customers to date. Below is a sampling)

13.2

13.3

13.4 RAILROADS

IC & E

14 Alberta RailnetAlaska

15 Arizona CaliforniaB & LE

BCR

Birmingham Southern

BNSF

California Northern

Cape Breton Central

Cape Breton

Central Michigan

Chemin df Charlevox

Chemin dfd la Matapedia

Chemin df Baie des Chaleurs

Chemin dfQ Ottowa Central

Chemin du Fer Quebec

CN System

Conrail

CSX

DMIR

EJ&E

Ferromex

Ferrosur

Georgetown

Hudson Bay

Illinois Midland

INCO

Indiana RR

KCS

MIP Rail

Nebraska, Kansas, Colorado

Nebraska NE

New Brunswick East

New Brunswick Southern

NS Corp

Ontario Northern

Paducah & Louisville

Providence and Worchester

QNS&L

Quebec Cartier Mining

Rail America Properties

RailTerm

Rock & Rail

St. Lawrence & Atlantic

Sydney Coal

Tex Mex

TFM

UPRR

Western Group

Wisconsin Central

Willamette & Pacific

15.1 TrackSTAR® TESTING FOR CONTRACTORS

16

17 Aberdeen & Rockfish

18 BakerCanac

Candu Contractors

Cedar American Rail Holdings

CR Construction

Farmrail

H & H

Harsco (VTA)

Kelly Hill

Kiewit Pacific

Marta Metroplex

Marta Track Contractors

Mountain States

PNR

Queen City

Railworks

RailTerm

Savage Alberta

VHB Engr. (Maine DOT)

18.1 TrackSTAR® TESTING FOR TRANSITS/GOVERNMENT AGENCIES

19 Amtrak

20 Bi-StateCaltrain

Chicago Transit Authority

City of Columbia

DART

GMAEC (Puerto Rico)

21 GO TransitHouston Metro

22 MBTA (Boston)

Metro North

Metro Water Chicago

MRS

National Radio

NICTD

Port of Tillomook

SEPTA

Staten Island

Tri-Met

UTA

22.1 INDUSTRIAL

22.1.1.1.1.1.1.1.1 Electric EnergyKC Power & Light

Kelly Hill

23 Navajo PowerNebraska Power District

23.1.1.1.1.1.1.1.1 Texas UtilitiesUS Steel

24 Weyerhauser

Chapter -3

Research methodology

RESEARCH DESIGN

The present research is exploratory; therefore the research

design adopted is Flexible, flexible enough to include any

information that can give new insight into the subject or change

the scope of the study. Also termed Formulative Research

studies, it involves formulating a problem for a more precise

investigation or of developing the working hypothesis from an

operational point of view. This research have inbuilt flexibility.

The problem, initially defined broadly, is transformed into one

with more precise meaning in exploratory studies.

So the methods adopted to collect the data are

Questionnaire, and relevant secondary data was also consulted.

The place chosen to gather data is offices, where everyone

would be an Investor. Any other place would not have been

that efficient as time and money effort required would have

been substantially high.

**PUT THE APPRAISAL FORMS WHICH WERE

DOWNLOADED IN THE CLASS **

OBJECTIVES 1.To apply my theoretical knowledge in real working

situations.

2. To know about the role of HR department an organization.

3. To study the real performance appraisal process.

4. To develop my abilities like communication skills, decision

making and problem solving power.

5. If employees understand their roles well, they are likely to

be more effective on the job.

To achieve the objectives of the research the data collected is of two types: 1.Primary data is collected by questionnaire, interview and

observations

2.Secondary data is collected from the company records.

Selection of samples is based on RANDOM REPRESENTATIVE SAMPLING from all the departments

and categories of employees

The sample size is 100 EMPLOYEES

Most of the questions are objective type except a few on

comment and suggestions regarding training

A few respondents were interviewed to counter check their

response in the questionnaire to assess the clarity of

questions and validity of answers.

Limitations

1. Some employees were not ready to fill the self appraisal

part of the form.

2. Making of KRA’s for me was not easy because it was first

attempt of my self.

3. Some of the employees had not enough time for filling my

forms due their business.

4. My theoretical knowledge of first & second semester was

not enough for this project.

CHAPTER-4

DATA ANALYSIS

Analysis and Interpretation

In order to covert collected data to meaningful information,

the collected must be

coded in graphical and in some general formats. One

important use of coding and

graphical is to easily understand the relationships with

different variables.

1)Analysis of appraisal of workers

1. Attendance-:

After appraising the employees I found that 95% of workers

attains above 95% attendance. The left 5%are job hoppers.

2. Job Knowledge-:

All the employees have good job knowledge and meets

expectations.

3. Behavior-:

Behavior of 98% employees is excellent & good.

4. Behavior-:

- I am taking these performance standards both because

these are interrelated as the target is for a team not of an

individual. So a good team player is a good achiever. In

these two categories 90% employees are good team players

and 90% employees are target achievers.

2)Analysis of staff employee’s appraisal

I had taken five rating scales i.e.

OVERALL RATING

O =Outstanding = 100-91

A = Good = 90-76

B= Average = 75-51

C =Below Average = 50-35

D = Poor = Below 35

1. In outstanding category there is 5% employee

2. In category A i. e. good 60% employees falls

3. Most of the employees are under category of average and

the % is 25.

4. Employees having below average are 10%.

5. In the poor category no employee I found.

98

Learning

1. Function of HR department in a manufacturing firm.

2. Solving hurdles in the process of appraisal

3. Paper manufacturing process.

4. Manpower required for the company.

5. Solving employees’ problems.

6. Organizational structure

CHAPTER-5

FINDINGS & SUGGESTIONS

Findings

• Include supervisors and managers responsible for

conducting performance appraisals and the executive to

whom they report.

• Meeting should be led by experienced facilitator, such as

organization’s head of HR, internal HR person trained as

a facilitator or an external consultant

• Core of the meeting:

• Discussion of each employee’s performance rating and

the supervisor’s reasons for that rating.

• Start with the outliers (extreme lows or highs)

• ID high performers and why

• Should be done before all performance ratings and

compensation decisions are finalized.

Suggestions

1. To improve attendance there should be rewards for those

employees who attains above 95% attendance.

2. There should be training sessions to improve team

building.

3. There should be proper training for appraisal to the

employees.

4. In the beginning of the year employee must know the

performance standards on which his/her performance will be

judged in end of year.

Conclusion

Finding job responsibilities of employees is easy but

making of KRA’s is quite challenging.

Performance appraisal is a vehicle to validate and refine

organizational actions (e.g. selection, training);

Performance appraisal provides feedback to employees

with an eye on improving future performance.

Performance of almost all employees is good.

Environment of the company is very good.

Annexure

1. Appraisal form for workers

2. Appraisal form for staff

(These are attached with this report)

EMPLOYEE PERFORMANCE REVIEW FORM

REVIEW PERIOD: from__________________________ to_________________________________

NAME:________________________________________EMPLOYEE CODE: _________________

DEPARTMENT: DESIGNATION:_____________________

DATE OF JOINING: DATE OF BIRTH: ___________________

JOINING CTC (P.A.): ___________________________PRESENT CTC (P.A.):________________

TOTAL EXPERIENCE (INSIDE + OUTSIDE): _________________________________________

QUALIFICATION: _________________________________________________________________

LAST INCREMENT DATE:______________________NO. OF INCREMENTS: ______________

ASSESSMENT RATING:

APRASEE RATING: ______________________ APRAISER RATING: _____________________ REVIEWER RATING: ____________________ AGGREGATE RATING:___________________ PROPOSED INCREMENT : ________________ PROPOSED DESIGNATION: ______________

(Name & Signature of APPRAISER & REVIEW COMMITTEE MEMBERS with Date)

EMPLOYEE PERFORMANCE REVIEW OBJECTIVES:

1) To provide an opportunity for promoting an atmosphere of TRUST & OPENNESS.

2) To develop employees in their present job with potential to take on higher responsibilities.

3) To serve as means of increasing organisational effectiveness.

4) To develop positive communication between individual and superior in order to plan, review and improve the

performance in the current position.

Instruction: Form to be filled by APPRAISEE, then by APPRAISER

and to be reviewed by CMO – Head & HR.

Company Name

Performance appraisal Form

A: Appraisee to complete before the interview and return to the appraiser by (date)

Discussion points:

org/division/dept:

Year or period covered: Name: Ref:

Location: Position: Time in present position: Tenure with Company:

State your Main KRAs and KPAs.

Appraisal date: Appraisal venue: Appraiser:

1. Has the past year been good/bad/satisfactory forr you, and why?

2. Mention the most important achievements of the past year?

3. What do you like and dislike about working for <Company name>?

4. What are the most difficult elements of you job?

5. What elements of your job interest you the most, and least?

Company name

CORRECTIVE ACTION NOTICE (HR-19) Employee Name:

Employee ID:

Supervisor: Supervisor ID:

Department: Date of This Action:

Disciplinary Level:

Written Reprimand

Final/2nd Written Reprimand In Lieu of Suspension

Suspension Without Pay (Letter of Intent to impose disciplinary action required prior to taking this action)

Dismissal (Letter of Intent to impose disciplinary action required prior to taking this action)

Prior Notifications:

Level of Discipline Date Reason

Verbal Warning

Written Reprimand

Suspension or Final/2nd Warning in Lieu of Suspension

Incident Description and Supporting Details.

(Outline details of what occurred to include time, place, date(s), as well as impact on the department and University of North Texas.)

List of Major and/or Minor work rule violations as outlined in Policy 1.7.1

Contents Competency mapping in an organization

1. Introduction 2. Meaning and definition of competency 3. Behavior indicators and key indicators 4. Categories of competencies 5. Meaning and concept of competency mapping 6. Competency models 7. Uses of competency mapping 8. Role of competency in identifying training needs and succession planning 9. History of competencies and compentency approaches 10. A study on MMTC 11. Competency and job analysis in MMTC 12. Competency steps in MMTC 13. Understanding the concepts in MMTC 14. Research and data collection of competency assessments 15. Conclusion 16. Bibliography

Abstract of the theses Today organizations are all talking in terms of competence. Gone are the days when people used to talk in terms of skill sets, which would make their organizations competitive. There has been a shift in the focus of the organizations. Now they believe in excelling and not competing. It is better to build a core competency that will see them through crisis. And what other way than to develop the people, for human resource is the most valuable resource any organization has. Organizations of the future will have to rely more on their competent employees than any other resource. It is a major factor that determines the success of an organization. Competencies are the inner tools for motivating employees, directing systems and processes and guiding the business towards common goals that allow the organizations to increase its value. Competencies provide a common language and method that can integrate all the major HR functions and services like Recruitment, Training, performance management, Remuneration, Performance appraisal, Career and succession planning and integrated Human resource management system. Over the past 10 years, human resource and organizational development professionals have generated a lot of interest in the notion of competencies as a key element and measure of human performance. Competencies include the collection of success factors necessary for achieving important results in a specific job or work role in a particular organization. Success factors are combination's of knowledge, skills, and attributes (more historically called “KSA’s”) that are described in terms of specific behaviors, and are demonstrated by superior performers in those jobs or work roles. Attributes include: personal characteristics, traits, motives, values or ways of thinking that impact an individual’s behavior.

PERFORMANCE MANAGEMENT SYSTEM

PURPOSE To institutionalize the Performance Management System by developing an integrated process of objective setting, assessment and evaluation that will support individual employee, departmental & organizational growth and help create a performance driven culture. APPLI CABI LITY This policy is applicable to all the employees of Verdant Telemetry & Antenna Systems Private Limited. OBJ ECTI VES

To provide a framework for systematic planning of Performance Objectives at the beginning of the year.

To ensure that individual objectives are aligned to the organizations goals. To ensure an objective and scientific evaluation of employee performance. To identify gaps in performance and take necessary actions to ensure the

achievement of organizational and individual goals. To define a proper career planning process. To provide inputs for determining the Compensation, Rewards & Recognition.

THE PERFORMANCE MANAGEMENT SYSTEM PROCESS FLOW

Vision, Mission Values & Goals

Organizational Annual

Business Plan

Specific Organizational

Objectives

Definite I ndividual Objectives

Review or Measurement of

KRA achievement

Assignation of Final Rating

Career Development &

Rewards

Functional Objectives

Key Result Areas (KRA’s)

Employee Information Employee Name:

Job Title:

Department: Hire Date:

Division: Last Review Date:

Reviewing Supervisor:

Member Focus Consider the employee's level of excellence in providing World Class Service to Members and employees by meeting and/or exceeding their expectations. Rate the extent to which the employee responds to Member and employee needs with courtesy, friendliness, concern and accuracy. Characteristics to consider: shows enthusiasm and passion in performing job, exhibits caring and compassionate behavior in interactions with Members and employees, has trust and respect of Members/employees. Results to evaluate: observations of service provided, Member comments and/or letters, comments from others, internal recognition, awards, listening skills, and is comfortable with contact/interaction.

Far Exceeds Performance Standards: Always considers Members to be the highest priority along with serving the employees to provide the highest level of service excellence to the Members. Frequently recognized for going above and beyond to meet the needs of the Members and employees. Exceeds the expectations of Members and/or employees.

Exceeds Performance Standards: Considers Members to be the highest priority along with serving the employees to provide the highest level of service excellence to the Members. Communicates with Members and/or employees to meet and even exceed realistic expectations. Consistently goes above and beyond by demonstrating service excellence.

Meets Performance Standards: Considers Members to be a high priority along with serving the employees to provide the highest level of service excellence to the Members. Ensures that Members' and employees' needs and expectations are fully met. Assignments are adequately completed meeting the desired results. Employees at this level accomplish the position requirements.

Needs Improvement: (NOTE: This option requires an explanation in the Comments Section below). In some instances does not fully meet realistic service expectations of Members and/or employees. Unable to sufficiently anticipate and/or identify Members' and employees' needs.

Self: N/A

Comments:

Development Plan:

Form No. ……………………… Appraisal Year…….………….. Dept./Site……………………….

PERFORMANCE APPRAISAL FORM ( Up to Deputy Manager Level ) Name of the employee PF No J ob Title Department / Site DOJ – Hofincons Hofincons experience Previous years of experience Legends :- Marks E - Excellent .. Above 85 Marks G - Good .. 71 to 85 Marks A - Average .. 60 to 70 Marks P - Poor .. Below 60 Marks Please tick the appropriate column Please consider performance of the employee for the entire period you are evaluating. Part I :-

S.No. PERFORMANCE CRITERIA Marks 1. WORK HABITS ( Total : 15 Marks )

- Attendance / Punctuality - Meets Deadlines - Manages Work Schedule - Prioritizes Work 2. TECHNICAL / FUNCTIONAL KNOWLEDGE ( Total : 15 Marks ) - Demonstrates Technical / J ob Knowledge during execution - Able to complete the work with minimum errors or without

the same.

- Adheres to business practices, policies, processes & procedures.

- Manages time effectively 3. ACCOUNTABILITY ( Total : 20 Marks ) - Owns responsibility for his work - Learns from mistakes committed - Listens to others views on continuous improvement

PERFOMANCE APPRAISAL FROM 1. Name:……………………………………………………, Emp Code :…………………… 2. Designation:……………………….…….., Department:……………………….. 3. Date of Joining:………………………. Please answer the following items from Q.No. 1 to 11 on a five-point scale by assessing 1-Out Standing 2-Verry Good 3-Good 4-Fair 5- Needs Improvement 0-Unsatisfactory

1) Physical suitability and bodily vigor. [ ]

2) Cleanliness of person and working habits. [ ]

3) Care of tools, materials and Laboratory property. [ ]

4) Willingness and enthusiasm. [ ]

5) Quality of work. [ ]

6) Quantity of work. [ ]

7) Reliability and trustworthiness of employee. [ ]

8) Ability to take intelligent action. [ ]

9) Mobility or willingness of employee to help in other jobs. [ ]

10) Leadership potentials of the employee. [ ]

11) Communicates effectively to share information or

Skills with colleagues [ ]

12) This quality “Time lost through lateness and Absence”

Ma Foi Management Consultants

Half Yearly Performance Management Form (updated May 2005)

Name Centre Head

Designation

Location Service Head

Spirit of Ma Foi

Ma Foi will emerge as the prime fountain of new meanings in HR.

We will partner with organisations to unleash human potential, enhancing the net worth of their human capital.

We will bring passion and professional rigor to address the stated

as well as latent needs of our customers. Our offerings will add knowledge, bring insights and be process-driven. Our customers

will experience us as warm, deep human and trustworthy.

Our Mission

To emerge as the most respected HR Service Provider in the world, anchored on values of transparency, growth, dignity and diversity

General Guidelines: Section I – OBJECTIVE REVIEW & FEEDBACK - To be filled in by the member and then discussed with the Centre Head / Reporting senior Section II – APPRAISER’S FEEDBACK, RECOMMENDATION & RATING - To be filled in by the Appraiser Section III – OVERALL RATING – To be filled in by Internal HR Section IV – YOUR ASPIRATIONS AND DEVELOPMENTAL NEEDS - To be filled in by the member & then discussed with Centre Head/Reporting Senior Section V – OBJECTIVE SETTING - Objectives for the next review period to be jointly decided by the Member and Centre Head/Reporting Senior.

Performance Evaluation Form Name of Employee ____________________________________________________________ Designation ____________________________________________________________ Department ____________________________________________________________ Principal Evaluator ____________________________________________________________ Please enter your grade from 0 to 10 (NA – for Not Applicable) Personal Characteristics Self Evaluator Comments Adherence to company practices Work Planning Ability to plan, prioritize and effectively manage tasks assigned.

Communication Express ideas and concerns clearly : Proficient and confident in presentation : Flexible and effective writing skills :

Risk Taking Is willing to take personal risks to advance new ideas; has to courage to commit resources based on a blend of analysis and intuition.

Resourcefulness Adapts to rapidly changing conditions; mediates differences; demonstrates high level of initiative, drive and persistence and involvement

Strategic thinking Can deal with ideas at an abstract level; has ability to conceptualize

Team Work Co-ordination within a team; sensitive response; develops rapport & trust; solicits interpersonal feedback

Managerial Proficiency Understands complex operational issues quickly and takes appropriate action; executes well

Integrity Professional and personal integrity; Confidentiality of sensitive information

Signature of Candidate Signature of Evaluator Date: Date:

Drive Ratings (Excellent, Very Good, Good, Average, below average, NIL)

SELF EVAL Dedication Responsibility

- Sample Form -

Annual Performance Appraisal

Appraisal Score Overall Score: / 5.0

EMPLOYEE INFORMATION

Name: Job Title:

Manager Name: Department:

Hire Date: Last Appraisal Date:

Evaluated By:

DEFINITION OF RATINGS

EXCEPTIONAL (5): Consistently exceeds all relevant performance standards. Provides leadership, fosters teamwork, is highly productive, innovative, responsive and generates top quality work. Active in industry-related professional and/or community groups.

EXCEEDS EXPECTATIONS (4): Consistently meets and often exceeds all relevant performance standards. Shows initiative and versatility, works collaboratively, has strong technical & interpersonal skills or has achieved significant improvement in these areas.

MEETS EXPECTATIONS (3): Meets all relevant performance standards. Seldom exceeds or falls short of desired results or objectives. Lacks appropriate level of skills or is inexperienced/still learning the scope of the job.

BELOW EXPECTATIONS (2): Sometimes meets the performance standards. Seldom exceeds and often falls short of desired results. Performance has declined significantly, or employee has not sustained adequate improvement, as required since the last performance review or performance improvement plan.

NEEDS IMPROVEMENT (1): Consistently falls short of performance standards.

INSTRUCTIONS

Describe the employee's contributions in each of the performance categories below. It is IMPERATIVE that you illustrate specific, detailed examples since the last performance evaluation. Ratings MUST support and be substantiated by narrative comments.

PERSONAL ATTRIBUTES (Matrix format) Score: / 5.0 % Competency Ratings Scale Comments: Score

/5.0 Quality Completes high quality work according to specifications. Thoroughly follows standards and procedures. Keeps complete records. Pays attention to details. Has a strong sense of quality and knows how to achieve it.

(0%)

- Sample Form - Goal Setting Review

EMPLOYEE INFORMATION Name: Job Title: Manager Name: Department: Purpose of Appraisal: Annual Review

Goal Setting Evaluated By

INSTRUCTIONS FOR NEW GOALS Identify a minimum of two new objectives. These objectives must be those that the employee agreed to accomplish over the coming year and address any one of the following areas:

Project Goals are specific assignments to participate in or manage ongoing or future projects. When setting project oriented goals, outline the scope of the role the employee is to play, lists resources and completion time frame and define the desired result.

Enter additional goals (to a maximum of 5 in total) by clicking on the "Add New" button.

NEW GOALS Objectives Weight

Title:

Action Items/Steps

Measures of Success

Title:

Action Items/Steps

- Sample Form -

New Position Performance Evaluation

Appraisal Score Overall Score: / 5.0

Name: Hire Date: Job Title: Department: Division: Manager Name:

Review Period: From: To: Purpose of Appraisal: For current employees during their 1st 3 months in a new position

For current employees during their 2nd 3 months in a new position

Performance Factors Score: / 5.0 Quality of Work Score: / 5.0 Consider: accuracy; neatness; timeliness; attention to detail; volume/quantity requirements; adherence to duties and procedures in Job Description and Work Instruction.

Outstanding Exceeds Requirements Meets Requirements Needs Improvement Unsatisfactory

Additional Comments:

Work Habits Score: / 5.0 Consider: attendance; punctuality; organization. Does the employee stay busy; look for things to do; and follow company policies and work procedures?

Outstanding Exceeds Requirements Meets Requirements Needs Improvement Unsatisfactory

Additional Comments:

Job Knowledge Score: / 5.0 For example, has the employee demonstrated the skill and ability to perform the job satisfactorily, shown interest in learning and improving, and become familiar with our rules and policies in the Employee Handbook?

Outstanding Exceeds Requirements Meets Requirements Needs Improvement Unsatisfactory

SELF APPRAISAL FORM

Employee name

Designation

Evaluation

From: To:

Please complete this sheet and return it to your PL

Use additional sheets if you need more space for your comments

1. Summarize all your major accomplishment/achievements for the period (Mar

2007-Feb 2008).

2. List any training program/HR orientation in which you have participated during this period. How have they improved you as a person and your professional efficiency?

3. How did you overcome problems and constraints which influenced your work performance during the review period? In future how you wish to overcome them?

4. In your current position what additional skills would be helpful in preparing you

Re: What is Performance appraisal?

Performance Appraisal 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 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 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

Bibliography

Aswathappa K, Human Resource & Personnel Management, Tata McGraw- Hill Publishing Co. Ltd., New Delhi, Sixth edition 2001

Kothari C.R., Research methodology methods & techniques, Wishwa Prakasan ublishing Co. Ltd., New Delhi, Sixth edition 2001.

Human Resources Management by P.Subarao

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