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CHAPTER – III

REVIEW OF LITERATURE

The review of related literature helps us to examine various research works

undertaken in the same area of research. It also helps us to identify the research gaps

existing in the same field of research. This chapter has taken effort to study the available

literature in the area of Performance Appraisal.

3:1 Performance Appraisal of group of Employees:

3:1:1 Performance Appraisal of Employees of laboratory professional:

Rick Panning and Beverly Farrell,11 in the web site on management help have

written a paper on ‘Performance Appraisal Process - What to expect as a laboratory

professional?’. In this descriptive paper, he analyses the methodologies of Performance

Appraisal process with focus on laboratory professional. In the clinical laboratory

profession, one of the most important aspects of the employment process is called

performance management (more commonly called Performance Appraisal). The purpose

of this process is to ensure that an organization provides high quality service to meet the

service needs of the customers. This is achieved by promoting employee competence.

According to the authors, a successful performance management process begins

during the hiring process. It continues as an ongoing cycle from recruitment, through

hiring, orientation, and goal setting and on to Performance Appraisal and evaluation.

11 Rick Panning, & Beverly Farrell, ‘Performance Appraisal Process - What to expect as a laboratory

professional”, www.managementhelp.org

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The performance management process starts with employee planning and ends

with an evaluation of employee progress. Managers and employees should meet to discuss

planning and goals throughout the year.

The Performance Appraisal is usually done in two steps. The first step is

completing the Performance Appraisal form. And the second step is participating in a

Performance Appraisal interview. The appraisal form, used in the first step, consists of

performance standards and criteria that are used to judge the performance. The

performance score is determined using a numerical rating scale similar to the following: 3

= excellent, 2 = average and 1 = poor.

3:1:2 Performance Appraisal of Employees of Automobile Industry:

Dr.Asha Nagendra12 in her article, An Analysis of Performance Appraisal System

in the Automobile Industry says that Performance Appraisal is a tool to assess an

individual’s competencies and training needs. It entitles evaluation of the performance of

all personnel such as employees, supervisors and managers, so that they can be trained

and developed for facing present and future challenges. However it tends to become a

ritual to be done with a minimum of time investment. Hence, this study was conducted to

establish the adequacy/inadequacy of the Performance Appraisal system in two companies

in the automobile sector, to assess whether it is human resource development oriented and

to evaluate whether it is effectively implemented. Two of the largest manufacturing

companies in our country, TATA Motors and Bajaj Auto were selected. The random

sampling method was used to select 100 middle level managers from the two

organisations. Result showed that managers from both the organisations felt that there

12 Dr.Asha Nagendra, (2008), “An Analysis of Performance appraisal System in the Automobile Industry”,

Rai Management Journal, Vol.5, Issue 1, March 2008, pp 77-83.

69

existed a good Performance Appraisal system in their organisation that is HR oriented.

However its implementation was found lacking. On comparison, TATA Motors scored

higher than Baja Auto in all aspects revealing that managers in TATA Motors were more

satisfied with the existing implementation of the Performance Appraisal system in their

organisation than those in Bajaj Auto. And it is concluded that it can be said that

Performance Appraisal still has a long way to go before it reaches a satisfactory

acceptance level. Principal component analysis and Factor analysis were used in

processing the data.

3:1:3 Performance Appraisal of Employees of knowledge society:

Rachna Narula13 in her essay on ‘Appraising performance in knowledge society,

Area of academics’, aimed at establishing the need to appraise the performance of the

academicians. According to her view, the academicians have been teaching the same

content for many years without making any major change in their style in accordance with

the changes in society, economies and so on.

In the business sector, performance planning is done by setting performance levels

by defining ‘key performance area’. The academicians also should be encouraged to get

feedback on their abilities. According to Cambridge Dictionary, feedback means

information or statement of opinion about something, which provides an idea of whether it

is successful or liked. So the process of feedback should be aimed at effective teaching

learning.

In her research, both primary and secondary data are being used. Two sets of

questionnaires, one from the students and the other from the faculty are collected. The

13 Rachna Narula (2005), “Appraising Performance in Knowledge Society, Area of Academics”- The HRM

Review, ICFAI university press, Oct. 2005. pp35-38.

70

study finds that feedback is necessary and it should be on dissemination of knowledge,

encouraging and coordinating discussion in the right direction, punctuality, clarification of

concepts, introducing novelty in the course content and so on.

The suggestion on feedback is given and it should be timely, relevant, factual,

helpful, confidential, respectful, tailored to specific needs and encouraging. It should

follow a systematic process.

Shagufta Jabeen14 says that as the educational institutions train the manpower

and the other sectors utilise them, they have to go hand in hand and have continuous

dialogue as to what is required to improve them and how it can be prepared. Human

resource is the only asset which appreciates in its value with the passage of time.

3: 2 Case study of Performance Appraisal Systems in private companies:

T.V.Rao15, has done a critical case study on ‘Senior Management Personnel

Appraisal: Crompton Greaves Limited.’ The study aims at studying the methodology

adopted in the Performance Appraisal System of Crompton Greaves Limited. The

objective of Performance Appraisal system in Crompton Greaves Limited is mainly to

assess three values.

The first one is Assessment of performance in Key Performance Area (KPA). This

KPA guided by quantum improvement as well as quality improvement in area of

performance. Goal setting should be followed by a weighted allocation of points for

assessment among the KPAs after prioritization of each KPA.

14 Shagufta Jabeen, (1999), “Performance Appraisal System in Industries Implication to Education System”,

University News, 37(30), July 26, 1999, pp8-10 15 T.V.Rao (2005), “Senior Management Personnel Appraisal Crompton Greaves Limited”, Chapter 12,

Human Resource Mangement,

71

The second part is Leadership and Team Building. Here the idea generation, risk

taking and taking ventures, critical attributes, training and development needs were taken

for consideration.

The third part is contribution to team spirit. Scores of each part of the appraisal

were entered in the overall rating. Appraisee’s boss also will give his comments. Hence

according to the rating level, the performances were rated.

Biswajeet Pattanayak16 in his critical analysis of the Performance Appraisal system

of Lintas India Limited, has given his report as follows;

Lintas uses the philosophy of Management By Objectives (MBO). They also

follow planning in their appraisal system. Objectives are set after discussion with the

concerned employee. Performance is measured in terms of these objectives every 3

months. Performance review discussion is made more objective. Before formal review

discussion, every employee is required to self appraise his performance based on the set

objectives. The company tries to find out the employee’s strength and skills in different

key areas and not his personal traits. Based on the appraisal discussions, employees are

also sent for management development programmes (if required).

Lateral shifts are made for people having potential in any other area. Performance

review discussions are held quarterly and career planning discussion are done annually for

every employee.

The negative comments about the Performance Appraisal are that there is a

considerable difference in the stated and practiced objectives of the PA. In the whole of

16 Biswajeet Pattanayak (2005), “Human Resource Management”, Prentice-Hall of India Pvt. Ltd., New

Delhi, pp 135

72

appraisal the supervisors tend to assume the role of judges. In contrast, when the aim is to

develop employees, managers need to be counsellors, helpers and teachers and not judges.

Companies that go for personal trait evaluation observe too much of subjectivity, bias and

halo effect in their decision.

Performance Appraisal system in L&T was appraised by T.V.Rao.17. The main

purpose of the appraisal system is to help an employee in identifying the strength and

weakness and to improve his performance and to develop him by guidance and training.

In L & T, by 15th October every year, the appraisee has to fill in Part A and

relevant portion of Part B of the form and hand over the same to his supervisor. A check

list helps the employee in filling of the form.

On receipt of the form, the immediate superior will arrange an appraisal interview

with the appraisee to discuss the performance, strength, weakness and ways of

development. The form along with the notes of the supervisors is to be submitted to the

next higher authority by 15th December.

There are guidelines for the appraisal of the supervisors, higher cadre staff, new

employees and transferred employees. The rating given are categorised as outstanding,

very good, good, adequate and inadequate.

The organisation aims at achieving knowledge upgradation, skill building,

behavioural and attitude development for its employees by the way of involvement,

counselling and training.

17 T.V.Rao (2005), “Performance Appraisal System in Larsen and Toubro Ltd”,’ Performance Appraisal

System’ pp138-158. Human Resource Mangement.

73

The article on ‘Turn Around from Feedback’18 by Brian Flannigon presents a case

study of Nalco’s success in using the 360 degree feedback system for developing their

sales personnel.

The case study stems from Nalco’s reduced annual turnover of its sales, through

the initiative of its Quality Action Team which identified the main reasons for its high

turnover. But they found that one primary issue that commended attention was – problems

with the boss.

To address this grave issue, the 360 degree assessment process was initiated by

Nalco along with North Block – a consulting firm and a pioneer in 360 degree assessment

process.

The 360 degree assessment was essentially aimed at district sales manager. The

managers assessed themselves and were assessed by their own sales manager and sales

representatives who reported to them. The data was analysed and a profile of each

individual was shared confidentially with the concerned person. Eventually the action

plans were drawn out and group recommendations were initiated.

Each manager was aided in identifying milestones that indicated he or she had

undergone a significant change. Thus, in this way, the Nalco experience of implementing

360 degree feedback for the sales managers was a success.

In this case study article of the authors N.Krishna Kishore and V.V.Ramani19 made

an attempt to study the complexity in the existing performance management system at RK

Fertilizers Company.

18 Brian Flannigon, (1997), ‘Turnaround from Feedback”, , HR Focus, October 1997, pg.3 19 “Performance Management System: A Case study on Indian Fertilizers Industry”, The ICFAI Journal of

Organizational Behaviour, April 2004, The Icfai University Press.

74

The objective of the study is to study the present system and if necessary to

restructure the whole system, to study whether the performance management system is

used as a performance developmental tool rather than appraisal tool and to emphasise

career developments, succession planning and promotions based on performance rather

than experience.

As the RK fertilizers is an old economy industry, performance management

system has to be studied by taking in to account industry’s cultural factors and

behavioural norms of the people in the company.

The methodology used for the study is Formal meeting and Informal meeting.

Questionnaire with a sample size of Junior manager (107), Middle manager (14) and

Senior manager (5) from manufacturing, finance, marketing and Human Resource

Management analysis of existing performance management system and Performance

Appraisal reports. Analogy to the cases is found and inferences are drawn, references to

books and other literature are made. Introduction on RK Fertilizers is given. It employs

more than 1150 people, located in Andhra Pradesh and is one of the pioneers in India that

introduced full fledged performance management system. The system is a highly suitable

system for this organisation.

This research is focussed on the reasons for the failures of the system and attempts

to suggest better ways of implementing the system. The results of the survey shows that

the key objectives of performance management are met only in a partial manner and the

company could not take full advantage of the merits of the system. The golden rule of

management is to value the individuals as persons and listen to them and act upon their

thoughts, feelings, needs and dreams.

75

Finally, performance enhancement system is quite useful in managing achievable

targets. Managers have to give the people the work they can do. Managers cannot expect

to achieve production beyond the reasonable capacity and skills beyond their training.

Managers should provide them an opportunity to learn and achieve.

J.Abhi Solomon20, ‘A Study on the Effectiveness of Performance Appraisal

System at SPIC Limited, Chennai’ July 2005.

The research is aimed at determining the effectiveness of PA system followed by

SPIC for officer’s cadre and to study the satisfaction level of employees towards fixing of

target, peer group, promotion, pay rise, increments and towards the PA system.

The study uses the primary data which is collected with a questionnaire on a

sample of 70 respondents. Chi-Square test is used to test the hypothesis that there is

significant relationship between the extent of pressure of performance and the extent of

pressure due to Performance Appraisal system. Using Semantic Differential Scale it is

seen that most of the respondents are satisfied with the 360 degree performance system.

It is suggested by the author that updates must be communicated to the employee.

Monetary rewards and compensatory packages should be modified into more attractive

packages. Counselling and resource mobilization for poorly rated employee would help

them to improve. Both individual goals and group goals should be clarified. Monthly

review meeting should be held every month for discussing the short comings.

J.Nalini21 has done a study (2005) on ‘A Study on Performance Appraisal of

Employees with respect to Dharangadara Chemical Works Limited (DCW)’

20 J.Abhi Solomon, (2005) “A Study on the Effectiveness of Performance Appraisal System at SPIC

Limited, Chennai”, July 2005, Madurai Kamaraj University, Madurai.

76

The objectives of the study are to analyse the feed back of Performance Appraisal

to evaluate the personal traits of employees and to analyse and recommend suitable

suggestions for improving the skills of the employees. The study is a descriptive analysis

of the Performance Appraisal system of workers of the DCW. The size of the sample is

120.

The finding of the study is that there is negative correlation between the age of the

employee and their opinion about the performance improvement. There is negative

correlation between work experience and opinion about professional growth, work

experience and opinion about job knowledge. The educational qualification and opinion

about problem solving and decision making skills are also negatively correlated. But it is

found that there is no relation between work experience and quality of work.

It is suggested by the author that Performance Appraisal should be done

periodically and it should be communicated to the employee periodically. During

Performance Appraisal, feed back should be given to the employees. It will help for

identifying the strengths and weaknesses of the employees and the solutions for correcting

the weaknesses should also been given so that employees can improve their performance.

It is also suggested that to improve the skills and the knowledge of the job the employees

should be trained properly. The Performance Appraisal may be done in proper interval by

trained faculty. Recognition and promotion may be given on the basis of the performance

at the right time and age. It is also expected that the bias in evaluation by the superiors be

eliminated to have a good work environment.

21 J.Nalini, (2005) “A Study on Performance Appraisal of Employees with respect to Dharangadara

Chemical Works Limited”, 2005. Madurai Kamaraj University, Madurai.

77

3:3 Performance Management:

Dr. Suvarna Sen22, in his article titled ‘Innovations in Performance

Management’, says Performance Management provides an efficient option for

implementing a system. This is about enabling managers to perform better in order to

succeed. It means creating a motivating work environment through appropriate incentives,

feed back and rewards; encouragements for wanting to do better jobs. Performance

Management system needs certain pre-requisites to function smoothly. They are:

• it should be used holistically as a system.

• the relevant sub-systems are in place and accepted.

• the organisation’s philosophy and human environment is conducive to high morale.

The manager is oriented to and equipped with high performing attitudes and

leadership skills. He emphasises that the performance management is the manager’s

concern and interest. Rewards, remuneration and other systems are for motivation and

reinforcement.

While saying about the Organisation Development (OD), he says the prime goal of

OD is to optimise the system by ensuring that system elements are harmonious and

congruent. OD techniques and approaches have been widely disseminated in society. The

OD is about people helping each other to unleash the human sprit and human capability in

the work place. Training and development is vital for every organisation to cope with

changes from time to time and perform well. Training need is defined as the gap between

the actual performance and the desired performance.

22 Dr.Suvarna Sen, (2006), “Innovations in Performance Management”, Personnel Today, A Quarterly

Publication of NIPM, April-June 2006, Vol XXVII, No 1, pp19-25.

78

Hence a performance management system is a formal review process to define,

encourage, recognise and reward high performance. It should define required skill sets for

each level of management, and quickly identify staffers who are exceeding or lagging

behind company expectations. The system should provide a basis for rewarding positive

performance and remain a key mechanism for determining which all employees should

move to higher layer of training.

T.V.Rao23, in his article on ‘Lessons from experience: a new look at performance

management systems’ stresses upon the importance of understanding the nature, potential,

and complexities of performance management systems (PMS), based on his

experiences of designing integrated HRD systems for various companies. Evaluating an

employee’s performance on the basis of numbers assigned could inflict serious injustice to

the performer. The outlook has to shift from an annual exercise to the on-going activities.

Appraisal focuses on ratings while improvements focus on work, stakeholders, service

levels, productivity, motivation effort and all such performance – related variables. Few

changes are suggested in order to improve PMS as a system. A questionnaire survey was

conducted on the managers from three organizations: an MNC, a family – owned

business, and a professionally managed company from abroad. This has clearly indicated

the potential use of PMS for performance enhancements and a similarity in the

implementation of PMS in all these organizations. The author discusses how these

insights helped him in designing the programme, popularly known as ‘invest twenty and

23 T.V.Rao, ‘Lessons from experience: a new look at performance management systems’

VIKALPA-The Journal for Decision makers, Volume- 33 July-September 2008 Number-

3.

79

direct 2,000 to 20,000TM’.The line managers and top management are being told that

their managers can learn to direct 2,000 hours of their performance time to 20,000 hours

of their junior’s performance time by merely investing 20 hours of their time for planning

their own and their junior’s work. PMS can be a great tool if designed comprehensively

and implemented in all earnestness, the author affirms. He has also given the comparison

chart between Performance appraisal systems (PAS) and Performance management

systems (PMS).

Dipti Sethi24 in the article on ‘Performance enhancing culture - A Rationale

Performance management Implications and Insight’ gives a background on performance

enhancing culture. The author says, job satisfaction, job involvement and commitment and

employees attitude are considered to enhance the organisation’s final output.

Defining this, the author says that it means a culture of an organisation which is

proactive in its action, blocks and weeds out actions and behaviour which cause barriers

and destructions and encourages and reinforces those actions and behaviours which are

positive, constructive and rewards the same. This will enable the employee to be

committed and engaged towards their work and contribution to the organisation. The

organisation is disciplined in its action but at the same time they are flexible and liberal in

its functioning – a quite long and confusing definition of course. The author says, to create

a performance culture, the organisation should consider their human resource as an

invaluable asset.

The components of a performance culture in an organisation are:

24 Dipti Sethi, (2007), “Performance Enhancing Culture: A Rationale, Performance Management

Implications and Insight”, Dipti Sethi (Ed), ICFAI University Press, Hyderabad, 2007, pp 3-10.

80

• Integrated Performance Management System (consisting of reward, culture, career,

competency, leadership, team based and measurement based performance strategy).

• High Performance Working System and Practices [HPWP] (includes job rotation, pay

for performance, new reward systems, continuous improvement in system and

extensive use of technology – also include sharing financial and non financial

information, profit sharing, multi skilling, quality circles, total quality management

and team work).

• Develop a Culture of Mentoring and Coaching (this gains vital importance).

• Talent Management (through HPWP) and

• Organisational Spirituality (this is an unending guide for the organisation under all

circumstances).

In conclusion the author says, to create and sustain a performance enhancing

culture, calls for a continuous effort in the organisation at the individual, group and

system level and strengthen it self to face the challenges in its environment. As per the

author, the article is an overview, briefing about the components of a performance

enhancing culture.

The author Tapomoy Deb25 is emphasising the importance of human power as a

resource. The author is giving explanation to stress the importance of human resource in

the complex, turbulent and dynamic business environment of today where goals,

circumstances, organisation structures, staffing and activities are constantly changing.

Task of Human Resource function is to organize, motivate, equip and direct rather

ordinary people to perform at their highest possible level. 25 Tapomoy, (2006), “Driving Human Resource to Performance: The New Mandate”, HRM Review, October

2006, The ICFAI University Press.

81

The strategies suggested by him regarding this are, Ownership of Performance

Management System. HR function is to see that every employee of the organisation

understand and to speak the language of business of the organisation and visualise success

as a team), Linking Work Goals to Performance Expectations, Change Agent and

Organisation as Rejuvenation Initiator and Ethic Custodian.

Appraising HR function:

Four perspectives are suggested by the author for this. They are,

Operations Perspective – refers to internal business process and their alignment with HR

planning, acquisition, development and retention of trained and developed employee who

can perform.

Financial Perspective – to keep cost of compensation and benefits at optional level based

on organisation’s ability to pay, industry norms, business strategy and growth prospects.

HR perspective – includes employee training and corporate culture attitudes related to

both individual and corporate self improvement. Today’s HR function needs to develop an

entrepreneur work force capable of delivering results at all times consistently and

continuously.

Customer perspective – customer delight and loyalty can be built only through employees

because, happy, committed and motivated employees pass on their goodwill to the

customers.

In conclusion, the author says, HR function has to ensure that the employees of the

organisation are utilised in such a way that the employer obtains the greatest possible

benefit from their abilities and the employees obtain both material and psychological

reward from their work.

82

The authors, K. Ravichandran and DJE. Ravithilagan26 explains the need for

Performance Management System and right Performance Appraisal System. They have

criticized the earlier approach of Performance Appraisal system as the one that does more

harm than good.

Superiors feel uncomfortable about giving appraisals. They don’t like the idea of

‘playing God’. Then the authors continue to give the advantages of the newer ways and

especially of the Management by Objective way of appraisal. The newer method shift the

emphasise away from inferred traits and focus more on observed behaviours and results.

The modern performance review process includes three essential steps.

Goal setting, Progress review and Performance review. Performance Appraisal System is

the continuous process of evaluating the performance behaviour and the results of such

behaviour in the work spot. Performance Appraisal refers to all forms and procedures used

to evaluate the contribution and potentials of employees that were traditionally used to as

a mechanism of controlling employee through salary administration, reward

administration, promotion and disciplinary action.

Performance Management System is a broader term than Performance Appraisal,

emphasised as total quality management programme using all of the management tools,

including Performance Appraisal to ensure achievement of performance goals.

The ultimate objective of performance management system is to ensure that

organisations link performance plans to its strategic goals, identify key result areas and

performance indicators and enable employees to achieve the desired performance targets.

26 K.Ravichandran & DJE. Ravithilagan, (1997), “Transformation of the Performance Appraisal System;

The Changing Scenario”, HRM Review, February 1997.

83

The authors suggest that Performance management system should ideally be

owned and managed by individuals and teams and not by Human Resources Department.

While concluding, the authors say that the system will no longer be just an

evaluation

3:4 360 degree assessments System:

The article on ‘Visual 360; A Performance Appraisal System that’s Fun27 presents

a visual 360 degree assessments saving a lot of time on the administrative front and

making it interesting and simple to the rate people. The author explains in detail how to

use the technology, right from logging on to rating the assessee through visual 360 degree

assessment. It is also easy to use and the raters have reported to be enjoying the process. It

also carries out the task of completing and compiling performance ratings. The program is

connected to various other relevant databases which can verify data and allow analysis.

The people revive and return their assessments quickly through their e-mail

connections. The report can also be prepared in different formats. The heart of the

systems, basically, is developing meaningful competencies that truly reflect the

company’s mission.

On the whole, visual 360 degree assessment is useful for reasonability large

companies; helps employees complete their rational forms easily, helps administrators

track what is happening and provides everyone in the process meaningful reports.

27 Jim Meade, (1999), “Visual 360; A Performance Appraisal System that’s Fun”, HR Magazine, July 1999,

pg 119-122.

84

The authors Gary Yukl and Richard Lepsinger, 28 describes ways and means by which this 360

degree feed back tool can be used in the most effective manner. For this tool to be

effective, it is essential to consider the design of the questionnaire, the way it is

administered, the process of feed back reporting and to follow up the process with

supporting activities such as training and development.

The 360 degree feed back can prompt real measurable changes in managers’

behaviour when people receive honest, specific feed back from their boss, colleague and

subordinates, they often come to understand how their behaviour affect others and the

need for changes in some of their behaviour.

In selecting the feed back questionnaire important areas should be considered. The

questionnaire should be well researched, behavioural, positive, if possible personal, and

should be multidirectional.

A successful feed back system depends on enlisting the operation of a sufficient

number of respondents who have knowledge about the manager’s behaviour.

In general the feed back report should be able to clearly identify feed back from

different perspective. The behavioural description obtained from different perspective –

direct report, colleague, bosses – should be presented separately. Aggregate feed back

from different sources tend to make it more difficult to interpret. Compare feed back from

others with manager’s own perception. Going through the process of rating compare the

manager’s rating to the fixed norms.

28 Gary Yukl and Richard Lepsinger, Source How to Get Most Out of 360 degree Feed Back ,: reprinted

with permission from The Complete New Training Library, copy right VNU Business Media, 50, South

Ninth Street, Minneapolis, MN, 55402, USA

85

Mark R.Edwards and Ann J Ewans29 in the book describe the powerful tool of 360

degree feedback for employee assessment and performance improvement. It deals with

the feedback tool in three phases. They are 360 degree feed back system as a new

assessment model, implementing 360 degree system and finally the concerns and needs of

the user.

In the first phase, the book underlines the power of 360 degree feed back, its

evolution and variations and applications. The second phase, deals with designing,

implementing and evaluating the 360 feed back process, while the third phase deals with

concern doubts like pitfalls and ways of avoiding them, criticism of 360 degree feed back

system, etc. The book deals with the potential that 360 degree feedback technique

promises for the future in career development, leadership and employee development,

selection and promotion systems, reengineering and redeployment, assessment systems,

team building, succession planning etc.

3: 5 Performance Appraisal for managers and supervisors:

Using archival organisational data, Lyness K.S. & Heilman30 the authors of the

paper on ‘When Fit is Fundamental: Performance Evaluation and Promotions of Upper

Level Female and Male Managers’, examined relationship of gender and type of

position (ie., line and staff) to performance evaluation of 448 upper managers and

relationship of performance evaluation to promotions during the subsequent 2 years

consistent with the idea that there is a greater perceived lack of fit between stereotypical

29 Mark R Edwards and Ann J Ewans (1996), “360 Degree feedback”, Valley Center: Organisational

Universe Systems, P.O. Box 38, 1996, pp 181. 30 Lyness K.S. & Heilman (2006), “When Fit is Fundamental: Performance Evaluation and Promotions of

Upper Level Female and Male Managers”, Journal of Applied Psychology, 91(4), 777-785, ISSN: 0021-

9010.

86

attributes of women and requirements of line jobs that staff jobs or men in either line or

staff jobs. Moreover, promoted women had received higher performance ratings than

promoted men and performance rating were more strongly related to promotion for

women than men, suggesting that women were held to stricter standards of promotion.

Diefendorff.J.M., Richard.E.M and Gosserand.R.H 31 expresses the hesitation

dimension of action-state orientation refers to the behavioural capacity to start action on

tasks. In this study, job characteristics (autonomy and routine ness) and job attitudes

(satisfaction and involvement) were examined as moderators of the relation between

hesitation and supervisor ratings of work behaviour (overall job performance and self

management performance) in two different samples. In both samples no difference in

performance was observed. In addition job satisfaction and job involvement were

significant moderators of the relation between hesitation and self management

performance with individuals low in hesitation performing better than individuals high in

hesitation when satisfaction or involvement was low but no difference in performance

were observed when satisfaction or involvement was high process, but will be a

development process.

3: 6 Methods of performance measurement:

In this article the authors Andrew Dutta and Manjeesh K Singh32, attempt to

provide an analysis of the most relevant performance measurement technique.

31 Diefendorff.J.M., Richard.E.M & Gosserand.R.H (2006), “Examination of Situational and Attitudinal

Moderators of the Hesitation and Performance Relation”, Personnel Psychology, 59(2), 365-393,

ISSN:5826. 32 Andrew Dutta & Manjeesh K Singh, (2003), “Appraisal Tools for Today’s Performance Management”,

HRM Review, September 2003.

87

The authors explain three methods of techniques available to managers to appraise

the performance of the employees. These modern methods are assessment centre,

management by objective (MBO) and behaviourally anchored rating scale (BARS).

Management By Objective(MBO) was proposed by Drucker based on the results

of his study of managerial behaviours in General Motors. Five step by step approaches to

be followed in this method of appraisal is explained.

Behaviourally Anchored Rating System (BARS) developed by P.C.Smith and

L.M.Kendali is a psychometrically valid reliable, discriminating and useful tool raters.

The caveat given for this is developing suitable BARS is time consuming. Lack of

benchmarking may make implementing BARS an expensive proposition.

In methods explained earlier the appraisal is either done by supervisor or by the

employee or both. But in 360 degree method, the employee gets evaluated horizontally,

vertically and diagonally. The main advantage here is that it provides a very

comprehensive and holistic picture of the performance of the employees.

In conclusion, the authors says that in performance management, a key

management goal is to ensure that the people who contribute the most receive the greatest

rewards.

3: 7 Enhancing the effectiveness of Performance Appraisal:

Dr. Kavita Shastri33, in the article ‘Enabling Human Resource for Excellence in

Performance’, emphasises the importance of human resource and discusses the ways of

making it to excel. The human resource is the most significant and the only factor of

production. The utilisation of all other resources directly depends on the efficient

33 Dr. Kavita Sastri, (2006) “Enabling Human Resource for Excellence in Performance”, Personnel Today,

A Quarterly Publication of NIPM, April-June 2006, Vol XXVII, No 1, pp 27-36.

88

utilisation of human resource. The business performance of any organisation lies in the

hands of its employees and in the organisation’s ability to fully utilise their experience,

talent and energy. The author says it is the motivation that makes the employee perform.

Understanding the needs and wants of the work force, culture and its impact on the

motivation and finding out measures to meet those results in performance. The author

quotes the Herzberg’s two factor theory to explain the motivation factors. The theory may

be applied to the de-motivated workers to improve the performance.

The author says that the Performance Appraisal determines how well an employee

is performing his job. It provides a mechanism for identification of qualities and

deficiencies observed in an employee in relation to his job performance. Potential

appraisal, training, role analysis, career planning, job rotation, quality circles, reward

system and hence we achieve the organisation development. A sound Human Resource

system is perhaps the most important element in the organisational effectiveness, which

not only ensure smooth performance but also long term survival and growth of the

organisation.

Amit Dhiman and Manjari Singh34, in their paper on ‘Appraisal Politics:

Revitalising from assessors perspective’ considers politics in appraisal (PAPS) as a bane

for administrative systems such as performance appraisals. Their paper focuses on the

assessors’ perspective and conceptualizes their perceptions of politics in appraisals

(PAPs). Argue that PAPS constitutes the assessor’ perception about political in behaviours

34 Amit Dhiman and Manjari Singh, ‘Appraisal Politics: Revisitings from assessors

perspective’, VIKALPA-The Journal for Decision makers, Volume- 32 January-march

2007 Number-1.

89

of other stakeholders- reviewers, assesses, and fellow appraisers- and shapes their own

perception. These perceptions will be influenced by certain contextual factors in which

appraisals are conducted. They have focused on four such factors: Ambiguity about

policies, procedures, performance standards, criteria, etc., Assessors’ accountability with

respect to appraisals, Assessors’ and assessees’ instrumentality linked to appraisal, and

organizational support in terms of assessors’ training to conduct better appraisals. The

assessor’s appraisal manipulations discussed in the last section have been termed

as”appraisal politics” and defined as “superior’s deliberate manipulations of employee

ratings to enhance or protect self or department interest” Thus, this paper has tried to

advance the knowledge in understanding the complex appraisal process in a manner that

can be appreciated both by the researchers and the practitioners.

Johari model:

An article in the www.businessballs.com on ‘JOHARI WINDOW’35 explains as

how the Performance Appraisal helps the employee to expand the open area. This was

developed by the American Psychologists Joseph Luft and Harry Ingam in 1950 while

researching the group dynamics.

1

(Open Area)

2

(Blind Area)

3

(Hidden Area)

4

(Unknown Area)

1 – Known by him and by others. (Open Area)

2 – Unknown by himself but known by others. (Blind Area)

35 www.businessballs.com

90

3 – Known by him but hidden to others. (Hidden Area)

4 – Unknown to all. (Unknown Area)

The aim is to increase the area of openness and to increase the productivity in the

group. The aim in any group should be always to develop the Open Area for any person

because when we work in this area with others we are at our most effective and productive

path and the group is at its most productive path too. The area is the space where good

communication and co-operation occur free from distraction, mistrust, confusion, conflict

and misunderstanding.

The Blind area ‘2’ is not an effective or productive space for individuals and

groups. People who are thick-skinned tend to have large blind area.

The organisational culture and working atmosphere have a major influence on

group members’ preparedness to disclose their Hidden selves (the area ‘3’). People fear

judgement or vulnerability and therefore hold back hidden information and feelings.

Large Unknown area ‘4’ will be in younger people and people who lack

experience or self belief. The article brings to focus that the Performance Appraisal helps

to open up more areas of individuals leading to good self development and organisational

development,

Y.Tejaswini36 says that for achieving the goals of the organisation effectively,

proper evaluation of the board is very important. Board evaluation is no longer just an

idea but is now imperative. A Keep It Simple (KIS) approach should be applied. The

author attempts to throw some light on the relative merits and demerits of the methods of

appraisal used to appraise the top executives.

36 Y.Tejaswini, (2004), “Appraising Board Performance: An Overview”, ICFAI Reader, 1 March, 2004, pp

55-61.

91

The Questionnaire Method, Interview Method, Focus Group Method, Self-

evaluation are some of the methods used to evaluate the top executives. The procedures

followed in these methods are explained. Some of the top level executives’ comments on

the Self-evaluation are given. The step by step procedure followed in the method are

given.

Giving an account of peer evaluation, the author argues that, it is not so fruitful as

there are so many ill effects like unpleasant happenings, rating lower or higher than

warranted, lenience in evaluating and providing near average rating. Board Directors

Scorecard method also is explained. While concluding the author says that irrespective of

the method used, the evaluation process should add to the continuous improvement of

effectiveness of the board.

Dana R. Scott37, writes that the employee Performance Appraisal enables the

appraiser to identify, evaluate and develop an individual's performance. It is a tool to

encourage strong performers to maintain their high level of performance and to motivate

poor performers to do better.

The important benefits of a formal appraisal process as given by him are validation

of hiring practices provision of an objective measuring tool on which compensation

decisions, and promotions can be based, identification of training and identification of

employees who have the potential for advancement or who might be better suited in other

areas of the organization. He then goes to explain how best to do it. A key component of

37 Dana R. Scott, (2001), “Evaluating Your Most Important Asset: The Employee Performance Appraisal

Process”, New Hampshire Business Review, August 2001.

92

the Performance Appraisal process is the creation of specific performance criteria or

competencies.

The three common mistakes generally done by the managers are: simply check off

a numerical rating on an evaluation form, not making enough time available to complete

the process and overrating the average performer or underrating the good one.

It is suggested that the Performance Appraisal tool should be updated on a periodic

basis and it should be equitable, accurate and timely. It should also create a process

whereby strong performers are acknowledged and rewarded, average performers are

encouraged and poor performers are coached and counselled toward improvement or

ultimately separated from the organization.

3: 8 Performance Linked Reward system:

Dr. Chandresh Agarwal38 et al in their paper on ‘Performance linked reward

management system (PLRS)’ has studied the effectiveness of PLRS in different

organization. The study is based on data collected from various sectors like Corporate,

academics and Government. Designing a performance linked reward scheme is

conditioned by a variety of factors such as the nature of business, types of technology, the

attitude of unions and human resource management strategies of the organisation.

The article written by Jess Gómez,39 and released by Ag Labor Consultant

Bakersfield, California from Gaisal Gregorio Billikopf Encina University of California

38 Dr. Chandresh Agarwal, Dr. Babita Agarwal and Prof. Shweta Soni, (2005), “Personal Linked Reward

System: A Strategic Approach towards Accomplishment of Work and Source for High Performance and

Excellence in Organisation”- Management Trend, Journal of Department of Business Management, vol. 3,

No.1, October 2005-March 2006. 39Dr.Jess Gomez, “Article about Performance Appraisal”, Ag Labor Consultant Bakers Field, University of

California.

93

says that, after employee selection, Performance Appraisal is arguably the most important

management tool a firm employer has at his disposal. The Performance Appraisal, when

properly carried out, can help to fine tune and reward the performance of the present

employees. The study is a descriptive analysis focussed on farm personnel manager.

A farm personal manger may be appraised in terms of understanding labour

management principles, knowledge of labour laws, skills in conducting interview or

ability to counsel employees.

According to Jess Gomez, Performance Appraisal is a vehicle to validate and

refine organizational actions (e.g. selection, training); and to provide feedback to

employees with an eye on improving future performance. As a conclusion, the authors

suggest that the comparison method is good, as it will prevent raters from placing all

employees in one category.

Rogers40 (1995) in his paper on ‘Choosing Personnel Management: Holistic

Approach’ says that Personnel management is a joint process that involves both the

supervisor and the employee, who identify common goals which correlate to the higher

goals of the institution. This process results in the establishment of written performance

expectations, later used as measures for feed back and performance evaluation. Reward is

an aid to better performance. They can motivate the learning of skills and the development

of knowledge. A sample of 70, consisting of employees from Corporate, Government and

Academic were studied. In academics, 35 who are working as Lecturers, Readers and

Professors have responded. The remaining 35 are selected from corporate and government

40 Roger.D, (1995) “Choosing Personnel management: Holistic approach”, CUPA Journal 1995, Summer.

94

sectors. Structured questionnaires are used to collect information. Likert scale is used to

analyse the effectiveness of this system. Comparative study in various sectors is done.

Rewards are classified into internal rewards and intrinsic rewards or external

rewards (money, fringe benefits, profit sharing etc.). Bonus schemes should be based on

contribution to productivity and profitability according to a pre-determined formula with

gains some times distributed among the individual employees on the basis of merit rating.

Productivity bargaining: Employee stroke options plan (ESOP) and Competency

based Pay are some of the PLRS suggested. It was concluded that in the corporate world

PLR system is functioning well compared to academic and government sectors. Reward

system is the motivational factor to excel the performance. In the academic sector

performance is low. There are no benefits, perks or monetary aids for better performance

and hence employees are not interested in doing a good job. The mean (m=67) is found to

be significantly higher in the corporate world as compared to the government (m=53) and

academic sector (m=50).

The calculated value of Z in the Corporate Vs Academic is 5.36, where as in the

Corporate Vs Government is 9.09; in both the cases the value of Z is greater than the

tabulated value of Z (1.96) and hence the alternative hypothesis (H1) is accepted. Overall

contribution and satisfaction of the employees is the highest in the corporate world. To

keep them committed and belonging, motivate them to monetary and non-monetary

methods for optimum use of potential in work.

Edward Lawler41 in ‘Treat People Right’, (2003), argues while it may appear

simple enough it is also a fundamental key to creating effective organisations. However,

41 Lawler III E.Edward, (2003), “Treat People Right”, Josey Boss Inc., 2003.

95

this is more difficult than it seems to do. The challenge is to identify and implement

organisation designs and practices that are good for both individuals and organisations.

Treating people right leads the relationship between the employee and the organisation

into a virtuous spiral. He explains that when organisations reward people for

performance they perform better, which propels the organisation to higher levels of

performance. The organisation is then able to reward them better, attract and retain more

talent which in turn spirals the organisation towards even better position.

3: 9 Methods of performing Performance Appraisal:

R.Venkataramana Rao42 says that a Performance Appraisal can be made

confidential or openly. A confidential and open system are defined by him. The pros and

cons of the systems are also given by the author. He further has given he steps involved in

modern Performance Appraisal system. This is a research paper with objectives to study

the existing system of Performance Appraisal system for executives, to find the

effectiveness of the working of the system, to identify the lacunae in the system, to

determine the perception of the officers towards Performance Appraisal and to get inputs

on how effective an open Performance Appraisal system is.

Carter McNamara43, says that yearly performance reviews are critical. Organizations

are hard pressed to find good reasons why they can't dedicate an hour-long meeting once a

year to ensure the mutual growth of the employee and the organization. Performance

reviews help supervisors feel more honest in their relationships with their subordinates

42 R.Venkataraman Rao, (2005), “Making Performance Appraisal an Open System”, HRM Review, August

2005, pp48-57 43 Carter McNamara, MBA, PhD, (2007), “Basics of Conducting Employee Performance Appraisal’

Authenticity Consulting, LLC “, The Field Guide to Leadership and Supervision, 1997-2007.

96

and feel better about themselves in their supervisory roles. Subordinates are assured clear

understanding of what's expected from them, their own personal strengths and areas of

development and a solid sense of their relationship with their supervisor. Avoiding

performance issues ultimately decreases morale, decreases credibility of management,

decreases the organization's overall effectiveness and wastes more of management's time

to do what isn't being done properly. Conduct the following activities.

1. Design a legally valid performance review process.

2. Design a standard form for Performance Appraisals.

3. Schedule the first performance review for six months after the employee starts working

4. Initiate the performance review process and initiate the process for the upcoming

meetings.

5. Have the employee suggest any updates to the job description and provide written

input to the appraisal.

6. Document your input -- refer the job description and performance goals.

7. Hold the Performance Appraisal meeting.

8. Update and finalize the Performance Appraisal form.

9. Nothing should be surprising to the employee during the appraisal meeting.

The author thus gives the procedures to be followed in formatting a PA and while

emphasizing the importance of the same.

Payal Chananinia44 in his article, ‘Self-appraisal must lead to performance

development’, has emphasised the importance of the self-appraisal. According to the

author, the first step in assessment is to decide the rating factors, on the basis of the

44 Payal Chanania (2008), “Self-appraisal must lead to Performance Development”, The Hindu,

Opportunities, November 5, 2008, p4.

97

company values. But, the standards should tie with the job description and what the

employee actually does on the job. The questionnaire for assessment should depend on the

industry type, organisational structure, company culture and total number of employee.

Relevant information on perceived strength, achievements, areas of development

potential, areas of improvement, trainings needs, likes and dislikes of the employee,

additional work/responsibility the employee would like to shoulder, action to be taken to

improve performance, immediate and long term goals to be achieved, and other

suggestions. Self-appraisal forms can have questions on top job priorities, elements of job

that he finds interesting/difficult, factors that impacted his performance, tasks that were

not successful and how supervisor/co-worker can help in achieving the goals. The self-

appraisal form can have a combination of both open ended and multiple choice questions.

In conclusion, the author says that it is essential to compare the self-assessment with the

rating of the supervisors. Therefore, the self-review serves as a starting point that should

be integrated with other methods to arrive at a balanced evaluation.

Computerised Performance Appraisal System:

M.V.V.Satyanarayana45 in the article “Computerised Performance Appraisal

System for Managers” describes the development and testing of an innovative

behaviourally based Performance Appraisal system for managers. The system was

designed to elicit response from groups of raters on the degree of a variety of professional

competencies that a manager should possess. In total the system applies a systematic

45 Satyanarayana M.V.V., (1991) “Computerised Performance Appraisal for Managers” Information

Technology in every day life, CSI – 91 Proceedings, page 107-115, September 29-October 2, 1991, New

Delhi, Editor M.L. Goyal, TATA McGraw – Hall Publishing Company Ltd., New Delhi., Proceeding of the

XXVI Annual Conference of Computer Society Of India.

98

developmental, formative approach to Performance Appraisal and includes a presentation

of a ratee’s strengths and weakness.

PRAISE is the modern appraisal system advocated by him. Praise, the acronym

standing for Performance Review, Analysis and Improvement System for Executives to

Employees is a developmental, formative, computerised, multirater, multi-trait

Performance Appraisal system. The system is based on the assumption that the desire for

growth is latent in everybody and that individuals look to the work place to grow

personally and professionally.

The PRAISE is designed to be used for both personal development and

development by consultants and trainers.

While this paper concentrates on the Performance Appraisal of middle level

managers, the complete PRAISE process encompasses procedures for appraising any role

incumbent from the executive to supervisor to employee level of the organisational

hierarchy. In summary, the PRAISE process helps the administrators to improve their

diagnostic and intervention skills and utilise and develop human resources effectively.

3: 10 Performance Appraisal of Employees in other countries:

Robert D. Bretz, Jr., George Milkovich, and Walter Read46 in their working paper

have studied the current status of the Performance Appraisal system followed in the

US. The most widely followed system is the MBO. Other formats such as trait-based

rating scales are far less common among these employee groups. However," mixed"

formats are common, and rating scales or ranking procedures are often used to supplement

MBO-based approaches. It is common to spend about 7 hours per year assessing the

46 Robert D. Bretz, Jr., George Milkovich and Walter Read, ‘Appraisal Research and Practices’, Working

Paper 92-15, Center for Advanced Human Resources (CAHRS).

99

performance of each employee at higher organizational levels and about 3 hours per year

for each employee at lower levels. Cognitive Processing Issues, Rater/Ratee Personal

Characteristics, Psychometric Issues are considered in the appraisal process.

The conclusion is that the authors have drawn from this and from earlier reviews

of appraisal. Research says that our knowledge of the rating process has expanded greatly

in recent years but remains fragmented. This fragmentation appears to be caused by

fundamental differences between the measurement aspects of appraisal research and the

organizational purposes of Performance Appraisal. From a measurement perspective, the

necessity to isolate specific effects has resulted in single-issue studies conducted in

laboratory settings. Moreover, most of this research addresses the consistency, not

necessarily the relevance, of the measurement. The effects of prior expectations, prior

knowledge of performance and memory decay have been studied separately from the

alternative uses of appraisals (administrative or developmental), the characteristics of

raters/ratees or the types of scales and formats employed.

Naceur Jabnoun and Khalefa Sedrani47 in their article TQM, Culture, and

Performance in UAE Manufacturing Firms investigates the TQM practices, corporate

culture and performance in UAE manufacturing firms with the help of questionnaires

containing three topics, distributed to General Managers, Quality Managers, Operation

Mangers and other functional Mangers. The impact of TQM on the performance of UAE

manufacturing companies is also studied.

47 Naceur Jabnoun, University of Sharjah & Khalefa Sedrani, Ministry of Education, UAE, (2005) “TQM,

Culture, and Performance in UAE Manufacturing Firms Quality Management”, Journal Vol. 12, No. 4,

2005.ASQ., www. asq.org pp 8-18.

100

The first part of the questionnaire is concerned with the demographic variables of

the respondents in addition to the number of employees in the organisations. The second

part is concerned with TQM practices. The critical TQM factor developed by Huarng and

Chen (2002) is used in framing this part of the questionnaire. The factors include seven

dimensions namely, leadership, customer focus, continuous improvement, supplier

partnership, empowerment, training and bench marking.

It is found that, customer focus and continuous improvement and management

commitment to quality are significantly correlated with all quality and performance

improvement.

It is to be noted that all performance measures had their highest correlation coefficient

with customer focus and continuous improvement, which is the most widely used TQM

dimension. Training is found to correlate with quality performance but not with business

performance. Finally the bench marks are found to correlate with quality performance in

addition to business performance.

3: 11 Confidential Report Writing System of Public Sector:

This case study by PRK.Raju and LK.Jena48 provides the background and

description of Performance Appraisal and its different methods. Further it gives a detailed

insight in to the new Performance Appraisals system of ONGC.

The authors when giving the definition of Performance Appraisal state that the

dictionary meaning of the verb ‘to appraise’ is ‘to fix a price for’ or ‘to value an object or

thing’. Again the Performance Appraisal is concerned with the process of valuing the

person’s worth to an organisation with the view to increase it.

48 PRK.Raju and LK.Jena, (2006), ‘The New Face of Performance Appraisal: ONGC Experience’, HRM

Review, April 2006.

101

The three types of Performance Appraisal explained are, the confirmation

appraisal, periodic Performance Appraisal and potential appraisal. ONGC is the company

of India running for a turn over of US Dollar 50 billion in five years. At ONGC, every

body matters, every soul counts. ONGC has a unique distinction of being a company with

in house service capabilities in all the areas of exploration and production of oil and gas

and other related oil field services, employing over 18,000 experienced, technically

competent executives, mostly scientists and engineers.

Performance Appraisal: Executive Performance Appraisal system is used in

ONGC and is assessed for the calendar year. There are reporting, reviewing and accepting

officers to assess the performance. Forced distribution method, where by employees

working in a particular centre disciplines are relatively appraised with four grades of Very

Good, Good, Adequate and Not Adequate. New system of Performance Appraisal is

suggested for ONGC. Then the authors go to narrate the procedure of Performance

Appraisal with the new Performance Appraisal system.

The various levels of appraisal and the authorities who have to do it are discussed.

While giving the benefits of the new Performance Appraisal system, the list class III and

class IV employees have distinct appraisal system, the class II officers at the threshold of

promotion to class I officer are assessed like that of class I officers and moderation

exercise is done after the reviewing officer’s assessment. ONGC is setting an example for

other Public Sector Undertakings.

102

V. Lakshamipathy 49 in his essay, ‘Personal Performance, Productivity and

Evaluation in the Public Sector’ deals with the technique of Performance Appraisal and its

utility in improving the productivity of public enterprises. Though specifically focusing

on government undertakings, Lakshamipathy’s analysis has relevance to most corporate

organisations, whether in public or private sector. His stress is on viewing and utilising

Performance Appraisal mechanism as an important tool of organisational development.

He advocates a close linkage of Performance Appraisal with Management by Objectives.

This linkage requires developing greater awareness about the nature and philosophy of

appraisal programme and the expectation from individual personnel and the reward

system..

Performance Appraisal in Public Enterprises, 1985 by V.Lakshmipathy50 talks of

how in the past the philosophy, perspectives and practices of appraisal were quite simple

and in time with organisational styles, Human needs, products, consumption patterns and

business styles have acquired new complexities due to rapid advances in technology

which in turn have stimulated multiple approaches to define knowledge in organisation.

Yet, personal performance, which is the anchor of individual goals and enterprise

objectives, continues to be treated as an inert object amenable to manipulation through

levers like rewards and incentives. All these elements while they are effective to a certain

degree cease to be so beyond a certain frame of time, function and place. On the other

hand, even a marginal innovation in either the procedures or process of appraising

49 V.Lakshamipathy (1992), “Personal Performance, Productivity and Evaluation in the Public Sector”,

Administration of Human Resources Comparative FOCI, Arihant Publishers, pp129-137. 50 Lakshmipathy.V., (1985), “Performance Appraisal in Public Enterprises”, Himalaya Publishing House,

1985.

103

performance facilitates better awareness of the job and generates greater willingness to

perform at every level with a minimum of dysfunctional side effects and costs.

The study area is the executives in grade I-VI, working with a hi-tech public

sector unit engaged in casting and forging requirements of various Indian and Foreign

industries.

The existing system of Performance Appraisal is studied and elaborated. Random

sampling method is used to select 50 respondents and the data were collected by the way

of personal interview. Based on the study it is found that, a team of performer is to be

identified and the team of performers wants the appraisal to be open to understand the

need for training and the industries expectations. The results show that, a good

Performance Appraisal system is required to see to the training need, to produce result

oriented officers in the highest post, to bring out the reflection of the individuals and thus

if the appraisal is made open, it can be more liable to lead competence, which will help the

organisation to become competitive in the industry. The author has correctly lists out the

limitations and the scope for future studies on this topic.

104

3: 13 Concept development and Problem identification from earlier reviews: The reviews done in this chapter are consolidated in the

table given below:

Table 3: 1 Concept development and Problem identification from earlier reviews

Rick Panning and

Beverly Farrell

Performance Appraisal Process — What to

expect as a laboratory professional

Performance management is an ongoing cycle from

recruitment

Asha Nagendra An Analysis of Performance Appraisal System in

the Automobile Industry

The adequacy or the inadequacy of the performance

appraisal system in companies in the automobile sector

compared

Rachna Narula Appraising performance in knowledge society-

Area of academics

Need to appraise the performance and teaching style and

content

Shagufta Jabeen Performance Appraisal System in Industries

Implication to Education System

The adequacy of Performance Appraisal System is

compared.

Biswajeet Pattanayak Performance Appraisal system of Lintas India

Limited

Examines employee’s strength and skills in different key

areas and not his personal traits.

105

T.V.Rao Performance Appraisal System in Larsen and

Toubro Ltd

to develop performance by guidance and training-

appraisee to discuss the performance, strength and

weakness.

Brian Flannigon Turn Around from Feedback Confidentially - action plans were drawn out and group

recommendations.

N.Krishna Kishore and

V.V.Ramani

Performance Management System: A Case study

on Indian Fertilizers Industry

Restructuring the system by studying the use of P.A

System as a developmental tool or as a appraisal tool

J.Abhi Solomon A Study on the Effectiveness of Performance

Appraisal System at SPIC Limited

satisfaction level of employees towards fixing of target,

peer group, promotion, pay rise, increments and towards

the PA system.

J.Nalini A Study on Performance Appraisal of Employees

with respect to Dharangadara Chemical Works

Limited (DCW)

Relationship of experience, job knowledge, quality of

work with Performance Appraisal system.

Dr. Suvarna Sen Innovations in Performance Management’ Creating a motivating work environment through

appropriate incentives, feedbacks and rewards.

106

Dipti Sethi Performance enhancing culture - A Rationale

Performance management Implications and

Insight

Top satisfaction, involvement and commitment and

employees attitude

Tapomoy Deb Driving Human Resource to Performance: The

New Mandate

Organize, motivate, equip and direct ordinary people to

their highest possible level

K. Ravichandran and

DJE. Ravithilagan

Transformation of the Performance Appraisal

System; The Changing Scenario

Goal setting, progress review and performance review.

Jim Meade Visual 360; A Performance Appraisal System

that’s Fun

Using the technology, right from logging on to rating the

assessee

Gary Yukl and Richard

Lepsinger

How to Get Most Out of 360 degree Feed Back Essential to consider the design of questionnaire, the

way it is administered, the process of feedback reporting

and so on.

Mark R.Edwards and

Ann J Ewans

360 Degree feedback Assess, implement and concerns the need of the user.

Lyness K.S. & When Fit is Fundamental: Performance Examine the relationship of gender type of position

107

Heilman Evaluation and Promotions of Upper Level

Female and Male Managers

Diefendorff.J.M.,

Richard.E.M and

Gosserand.R.H

Examination of Situational and Attitudinal

Moderators of the Hesitation and Performance

Relation

Examines as moderators of the relation between

hesitation and supervisor ratings of work behaviour

Andrew Dutta &

Manjeesh K Singh

Appraisal Tools for Today’s Performance

Management

Assessment centre, Management by Objective (MBO)

and Behaviourally Anchord Rating System (BARS)

1 Dr. Kavita Sastri Enabling Human Resource for Excellence in Performance Importance of human resource and the ways of making

it excel.

Y.Tejaswini Appraising Board Performance: An Overview Importamce of proper evaluation of the board

Dana R. Scott Evaluating Your Most Important Asset: The Employee

Performance Appraisal Process

Identify, evaluate and develop an individual

performance.

Dr. Chandresh

Agarwal, Dr. Babita

Agarwal and Prof.

Personal Linked Reward System: A Strategic

Approach towards Accomplishment of Work and

Source for High Performance and Excellence in

Designing a performance linked reward system.

108

Shweta Soni Organisation

Dr.Jess Gomez, Article about Performance Appraisal Understanding labour management principles,

knowledge of labour laws and ability to councel

employees

Roger.D Choosing Personnel management: Holistic

approach

Identify common goal which correlate to the higher

goals of institution

Edward Lawler Treat People Right Organisations reward people for performance they

perform better

R.Venkataramana Rao Making Performance Appraisal an Open System Performance Appraisal System required to see training

needs to produce result oriented officers

Carter McNamara Basics of Conducting Employee Performance

Appraisal

Difficulties in yearly performance reviews and

importance of continuous assessment

Payal Chanania Self-appraisal must lead to Performance

Development

It must lead to performance development

Satyanarayana M.V.V Computerised Performance Appraisal for An innovative behaviourally based performance

109

Managers” Information Technology in every day

life

appraisal system for managers

Robert D. Bretz, Jr.,

George Milkovich and

Walter Read

Appraisal Research and Practices Process has expanded greatly in recent years but

fragmented

Naceur Jabnoun and

Khalefa Sedrani

TQM, Culture, and Performance in UAE

Manufacturing Firms Quality Management

Customer focus, continuous improvement and

management commitment to quality are correlated with

all quality and performance improvement.

PRK.Raju and

LK.Jena

The New Face of Performance Appraisal: ONGC

Experience

Valuing the person’s worth to an organisation with the

view of increasing it

V.Lakshamipathy Personal Performance, Productivity and

Evaluation in the Public Sector

Performance appraisal and it’s utility in improving the

productivity of public enterprise

3: 14 Gap in the study:

In the above table, few of the research papers and its contributions to the management

literature are listed out. The various authors in the articles reviewed here have done elaborate

studies on the Performance Appraisal system and have given their views on the topic. There

are studies on the use of different types of appraisal systems and their advantages and

disadvantages, Performance Appraisal for different kinds of companies and so on. But there

is a gap in the above referred studies, which clearly shows that there is no earlier study on the

need for revamping the existing Performance Appraisal system of a major Public sector

undertaking – the Indian Railways or any other organisation of such calibre. The Confidential

Report Writing system is not examined for its validity by earlier studies. No other known

study has suggested any alternative system for the existing method of Confidential Report

Writing system. Again the electronic appraisal system suggested by M.V.V. Sathyanarayana,

who has written about electronic system, has not gone intensively in preparing any electronic

appraisal system. Since these gaps were identified, the researcher intended proceed for

research in the identified areas.