Performance Appraisal in Sahara India Pariwar (1)

PERFORMANCE APPRAISAL-IN SAHARA INDIA’

PROJECT REPORT ON

‘PERFORMANCE APPRAISAL-IN SAHARA INDIA’

SUBMITTED BY

TRISHLA PREM MARWAHA

T. Y. B. M. S. SEMESTER V- ROLL NO. - 7802

ACADEMIC YEAR 2012-2013

PROJECT GUIDE

PROF. SEEMA ASHAR

SUBMITTED TO

UNIVERSITY OF MUMBAI

MULUND COLLEGE OF COMMERCE

S. N. ROAD, MULUND (WEST)

MUMBAI – 400 080.

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PROJECT REPORT

ON

‘PERFORMANCE APPRAISAL-IN SAHARA INDIA’’

SUBMITTED TO THE UNIVERSITY OF MUMBAI IN THE PARTIAL

FULFILLMENT FOR THE DEGREE OF BACHELOR OF

MANAGEMENT STUDIES

BY

TRISHLA PREM MARWAHA

(THANE)

TO

PROJECT GUIDE

SEEMA ASHAR

MULUND COLLEGE OF COMMERCE

S. N. ROAD, MULUND (WEST),

MUMBAI – 400080

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UNIVERSITY OF MUMBAI

Date of Submission:

DECLARATION

I, TRISHLA MARWAHA, A STUDENT OF MULUND COLLEGE OF

COMMERCE, S. N. ROAD, MULUND (WEST), MUMBAI – 400080

STUDYING IN T. Y. BMS HEREBY DECLARE THAT I HAVE

COMPLETED THIS PROJECT ON “PERFORMANCE APPRAISAL-IN

SAHARA INDIA’” DURING THE ACADEMIC YEAR 2012-2013. THE

INFORMATION SUBMITTED IS TRUE AND ORIGINAL TO THE BEST

OF MY KNOWLEDGE.

DATE: SIGNATURE OF STUDENT

PLACE: MUMBAI

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ACKNOWLEDGEMENT

I, TRISHLA PREM MARWAHA the student of Mulund College of Commerce, S. N. Road

Mumbai studying in T. Y. BMS would like to thank the Principal Dr Mrs. S. M. Diwanji and

the Vice Principal Dr. D. G. Deshpande.

My deepest thanks to the Coordinator of BMS course and my Project Guide Professor Seema

Ashar. I would also like to thank all the teachers who kindly cooperated with me, spared their

valuable time and contributed towards this project.

Thank You to all my student friends who patiently sat and interacted as I performed a survey

on them. The non-teaching staff and library have been of great help as I created this project, a

heartfelt thanks to them as well.

Last but not the least I am highly indebted to my Computer, for being there.

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OBJECTIVES OF PERFORMANCE 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 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.

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EXECUTIVE SUMMARY

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CHAPTERISATION

Chapter 1: Introduction

Chapter 2: Characteristics

Chapter 3: Process

Chapter 4: Limitation and Benefits

Chapter 5: Advantages and Disadvantages

Chapter 6: Methods

Chapter 7: Rating errors

Chapter 8: Roles

Chapter 9: Rules and Regulations

Chapter 10: Case Study

Chapter 11: Suggestions/Recommendations

Chapter 12: Conclusion

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Table of Contents

Chapter-1 Introduction

Significance of the problem Review of literature Conceptualization Operationalization of the concept Focus of the study Objectives Hypothesis Limitation Chapterization Notes

Chapter-2 Research Methodology

Universe and Survey Population Profile of the organization Research design Sample design Data collection Identified independent and dependent variables Analysis pattern

Chapter-3 Micro (Data) Analysis

Chapter-4 Macro Analysis(conclusions)

Chapter-5 Observation & Recommendations

Chapter-6 Questionnaire Raw analysis

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Bibliography

INTRODUCTION

As a distinct and formal management procedure used in the evaluation of work

performance. Its roots in the early 20th century can be traced to Taylor's pioneering Time and

Motion studies. The practice of appraisal is a very ancient art. 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,

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informally and arbitrarily. Without a structured appraisal system, there is little chance of

ensuring that the judgments 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.

Performance Appraisal is defined as the process of assessing the performance and

progress of an employee or a group of employees on a given job and his / their potential for

future development. It consists of all formal procedures used in working organizations and

potential of employees. According to Flippo, “Performance Appraisal is the systematic,

periodic and an important rating of an employee’s excellence in matters pertaining to his

present job and his potential for a better job.”

Modern Appraisal

Performance appraisal may also 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. Appraisal results are used, either directly or indirectly, to help

determine reward outcomes.

RATIONALE

The rationale underlying performance appraisal programmes involves considerations.

It is a truism that contributions of individuals to the enterprise lead to employee rewards. In

situations, where it is possible to measure production, there exists no need for assessing

employees because they can be rewarded in terms of amount of their production. However, if

it is not possible in some positions to measure the work accomplished by the individuals, the

personal traits which are likely to cause enhanced productivity and facilitate their work.

Performance may be incorporated in the appraisal form and used for assessment purposes.

The following traits are usually found to form-the basis for appraisal: ability to

understand people, readiness to accept new ideas, learning ability, judgment, reliability and

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responsibility, common sense and initiative, attitude towards superiors, attitude towards

subordinates, attitude towards associates, safety-mindedness, attendance, cooperation and

helpfulness! Health and physical endurance, adaptability, etc.

Although these characteristics can be correlated with specific features of job

performance to infer a cause and effect relationship between personal traits and job

performance, the ratings assigned by superiors to their subordinates are usually susceptible to

subjectivity and thus, do not involve scientific precision and objectivity. Therefore, it is not

possible on the basis of these ratings to make finite differentiations in the employees'

productivity and performance and accordingly make precise personnel decisions.

Performance appraisal is a method of evaluating the job performance of an employee. It is an

ongoing process of obtaining, researching, analyzing and recording information about the

worth of an employee.

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OBJECTIVES OF PERFORMANCE APPRAISAL:




Helps to strengthen the relationship and communication between superior –


To diagnose the strengths and weaknesses of the individuals so as to identify the

training and development needs of the future.



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.


SIGNIFICANCE

Flippo thinks that systematic "performance appraisal" is of utmost significance in

organization settings.

It provides highly useful information in much advance of time which is of great

assistance in making and enforcing decisions regarding various personnel aspects

such as promotions, pay increments, layoffs and transfers.

The performance appraisals are also of great significance in so far as they provide

useful criteria for determining the validity of selection and training methods and

techniques and form concrete measures for attracting individuals of higher caliber to

the enterprises

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HYPOTHESIS

Hypothesis 1: The level of importance a supervisor views in the performance

appraisal process will be positively related to the supervisor putting forth effort to

perform the performance appraisal accurately.

Hypothesis 2: A supervisor’s perception of justice in the performance appraisal

process will positively correlated with a supervisor accurately completing the

performance appraisal process.

Hypothesis 3: Accurately completing the performance appraisal process will be

positively related to performance appraisal effectiveness.

Hypotheses 4: Performance appraisal accuracy will mediate the relationship between

the supervisor’s perception of the importance of the performance appraisal and the

supervisor’s accuracy in completing the performance appraisal process.

Hypotheses 5: An employee’s level of organizational commitment will positively

correlate with the effectiveness of the performance appraisal.

ASSUMPTIONS

The use of the performance appraisal seems so logical until you look a little deeper.

Below are some assumptions that must be true if performance evaluations, as we

presently do them (sit down once or twice a year and talk about how the employee is

doing), can be valuable and valid.

Evaluation will improve an employee’s performance. The standards of evaluation are

related to factors demonstrably important to the organization and its customers. The

standards are reasonable and achievable.

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The employee being evaluated has control over the results. Each system in which an

employee works is stable and capable of delivering the expected results.

The employee’s individual contribution can be discerned from the contributions of the

system and other managers and workers in the system.

The processes with seemingly identical equipment, materials, training, job

description, etc., are, in fact, identical. The evaluation covers performance over the

entire cycle of evaluation, not just the period recallable by accurate memory.

All evaluators are consistent with each other. Each evaluator is consistent from one

employee to the next.

RESEARCH METHODOLOGY

Primary Data

Data will be collected by questioning the people working in various Sectors.

Information will be collected by interviewing the people affected by the

Performance Appraisal, also discussion technique.

Secondary Data

Data will be collected from books, journals and magazines. Also newspaper and

various websites.

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EXPECTED CONTRIBUTION

The appraisal should include a column for reflecting the Pen picture of the Manager

reported upon by the reporting manager, wherein he can indicate his comments on the overall

qualities of the manager including area of strength and lesser strength and his attitude

towards the weaker section.

The numerical grading are to be done with a grading of 1 -10 where 1 refers to the

lowest grade and 10 to the highest grade.

Further the appraisal can also include the following as enumerated below:-

(a) 40% weightages on assessment of work output

Accomplishment of planned work/work slotted as per subject allotted.

Analytical ability

Accomplishment of exceptional work/unforeseen tasks performed

Overall grading on 'Work Output'

(b) 30% weightages on assessment of personal attributes

Attitude to work

Sense of responsibility

Maintenance of Discipline

Communication Skills

Leadership qualities

Capacity to work in team spirit

Capacity to work in time limit

Inter-personal relations

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(c) 30% weightages on assessments of functional competency

Knowledge of Rules / Regulations / Procedures in the area of function and

ability to apply them correctly.

Strategic planning ability

Decision making ability

Coordination ability

Ability to motivate and develop subordinates

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From the pen of our Chief Guardian

In business profit earnings and overall growth of business get the highest priority and are

certainly creditable, but ultimate credibility of business enterprise, particularly of larger ones

is in the utilization of profit be it for best possible enlistment of its workforce and for

espousing Social, National Development causes, or for rendering services to mankind as a

whole. Fulfilling the qualitative aspect of utilization of profit, the world’s largest family

‘Sahara India Pariwar’ is proud to have reached today new horizons of growth and

development.

On the threshold of a new leap forward, now we once again dedicate to you those values and

ideals which have shown us the way to this journey to our present proud position-Emotion

before Economics, Principles before Profit, Values before Wealth, Man before Money,

Country before Religion, Quality before Quantity, Conscience before Corporation, Family

before Fortune.

On the basis of our philosophy of collective materialism we have always given importance to

the fact that profit earning is the Quantitative aspect whereas the proper utilization of profit is

the Qualitative aspect. Ironically we only recognize and get recognized by the Quantitative

aspect.

I, therefore earnestly appeal to one and all in Politics, Media, Business etc. that every action,

reaction, selection, appreciation or criticism should be oriented strictly towards the

Qualitative aspect. I appeal to anybody and everybody to accord top priority to Qualitative

aspect in anything and everything for peaceful, prosperous and progressive co-existence of

mankind anywhere and everywhere.

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Today, I feel proud of the fact that I am the Guardian of the World's largest family. Perhaps, I

am the world's only person whose family is so vast, so disciplined, so dedicated and so

committed. Such a vast family as Sahara India Pariwar has a grand and infinite future and I

am sure that we will sustain our duty, consciousness, discipline and dutifulness with a sense

of dedication, as we have always done in the past, so that together we could build an India

full of energy and radiance.

SUBRATA ROY SAHARA

Managing Worker & Chairman

Sahara India Pariwar

Significance of the problem

The study will be worth full for the industry to take some updated and dedication and will

make them competent within the existing dynamic environment. The study will provide the

industry clues about what the employees expect or what modifications they want in the

existing process of performance appraisal measures in order to make the performance

appraisal programs more impact able on the employees. This will not only upgrade the

morale of employees but also will maintain the faith of the workers in the organizations

policies. This will make the employees to work with more confidence

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Review of literature

1. Douglass: Performance appraisal is a method of acquiring and processing the infor-

mation needed to improve an individual employee’s performance and accomplishments.

2. Newstrom: It is the process of evaluating the performance of employees, sharing that

information with them and searching for ways to improve their performance.

Talent Management is directed to top-level management, senior human resources, work-

force and organizational development executives whose task is to optimize the abilities of

their human assets to drive and improve the execution of enterprise strategy

Process by which a manager or consultant (1) examines and evaluates an employee's work

behavior by comparing it with preset standards, (2) documents the results of the comparison,

and (3) uses the results to provide feedback to the employee to show where improvements

are needed and why. Performance appraisals are employed to determine who needs what

training, and who will be promoted, demoted, retained, or fired.

According to Flippo, a prominent personality in the field of Human resources, “performance

appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in

the matters pertaining to his present job and his potential for a better job." Performance ap-

praisal is a systematic way of reviewing and assessing the performance of an employee dur-

ing a given period of time and planning for his future.

Performance appraisal is the process of obtaining, analyzing and recording information

about the relative worth of an employee. The focus of the performance appraisal is measuring

and improving the actual performance of the employee and also the future potential of the

employee. Its aim is to measure what an employee does.

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http://www.businessdictionary.com/definition/training.html

http://www.businessdictionary.com/definition/need.html

http://www.businessdictionary.com/definition/employed.html

http://www.businessdictionary.com/definition/improvements.html

http://www.businessdictionary.com/definition/employee.html

http://www.businessdictionary.com/definition/feedback.html

http://www.businessdictionary.com/definition/use.html

http://www.businessdictionary.com/definition/documents.html

http://www.businessdictionary.com/definition/standards.html

http://www.businessdictionary.com/definition/behavior.html

http://www.businessdictionary.com/definition/work.html

http://www.businessdictionary.com/definition/employee.html

http://www.businessdictionary.com/definition/consultant.html

http://www.businessdictionary.com/definition/manager.html

http://www.businessdictionary.com/definition/process.html


It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps

to analyze his achievements and evaluate his contribution towards the achievements of the

overall organizational goals.

By focusing the attention on performance, performance appraisal goes to the heart of person-

nel management and reflects the management’s interest in the progress of the employees

A face-to-face discussion in which one employee's work is discussed, reviewed, and

appraised by another, using an agreed and understood framework. Usually, line managers

conduct the appraisals of their staff, although peers can appraise each other, and line

managers can themselves be appraised by their staff through 360 degree appraisal. The

appraisal process focuses on behaviors and outcomes, and strives to improve motivation,

growth, and performance of the appraisee. Performance appraisals should be conducted at

least once a year.

Performance management is the process of creating a work environment or setting in

which people are enabled to perform to the best of their abilities. Performance management

is a whole work system that begins when a job is defined as needed. It ends when an

employee leaves your organization.

Many writers and consultants are using the term “performance management” as a substitution

for the traditional appraisal system. I encourage you to think of the term in this broader work

system context.

A performance management system includes the following actions: -

Develop clear job descriptions.

Select appropriate people with an appropriate selection process.

Negotiate requirements and accomplishment-based performance standards, out-comes, and measures.

Provide effective orientation, education, and training.

Provide on-going coaching and feedback.

Conduct quarterly performance development discussions.

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Design effective compensation and recognition systems that reward people for their contributions.

Provide promotional/career development opportunities for staff.

Assist with exit interviews to understand WHY valued employees leave the or-ganization.

ConceptualizationPerformance appraisal

An organization’s goals can be achieved only when people put in their best efforts. How to

ascertain whether an employee has shown his or her best performance on a given job? This

can be done through performance appraisal.

In simple terms, performance appraisal may be understood as the assessment of an

individual’s performance in a systematic way, behaviors on jobs and his or her potential for

future performance.

Objectives of Performance appraisal:




Helps to strengthen the relationship and communication between superior – subordi-nates and management – employees.

To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future.



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Provide clarity of the expectations and responsibilities of the functions to be per-formed by the employees.

To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.


Whose performance should be appraised?

It is obvious, that employee’s performance should be appraised. Here employees, is individuals or teams. Specifically, it includes individual, work group, division or organization.

Who is the appraiser?

Appraiser can be immediate supervisors, specialists from the HR department subordinates, peers, committees, clients, self-appraisals or a combination of several.

Immediate supervision is the fit candidate to appraise the performance of his or her subordinates because no one is more familiar with the subordinate’s performance then his or her superior.

Subordinates can assess the performance of their superiors. The use of this choice may be useful in assessing an employee’s ability to communicate, delegate work, allocate resources, disseminate information, resolve intra-personal conflict, and deal with employees on a fair basis.

Peers are in better position to evaluate certain facts or job performance which the subordinates or supervision cannot do.

Where superiors, peers, subordinates and clients, make appraisal it is called the 360-degree system of appraisal.

In self-appraisal, the employee himself or herself evaluates his or her own performance.

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What should be appraised?

One of the steps of an appraisal programmes is to determine the evaluation criteria. It is obvious that the criteria should be related to the job. The criteria are:-

(a) Quality: The extent to which result of carrying out an activity approaches perfec-tion.

(b) Quantity: The amount produced expressed in monetary terms number of units, or number of completed activity cycles

(c) Timeliness: The degree to which an activity is completed or a result produced at the earliest desirable time.

(d) Cost effectiveness: The degree to which the organizations resources is maxi-mized in the sense of getting the highest gain or reduction in loss.

(e) Need for Supervision: The degree to which a job performer may need or may not need supervisory for carry out a job function.

(f) Interpersonal Impact: The degree to which a performer promoters feeling of self-esteem, goodwill and co-operation among Co-workers and subordinates.

Why Performance Appraisal?

Performance Appraisal is a vehicle to (1) validates and refines organizational actions (e.g. Selection, training etc.) (2) Provide feedback to employees with an eye on improving future performance.

Tools of performance appraisal

Performance Appraisal Techniques

Individual evaluation methods Multiple-person evaluation methods

1. Confidential report Ranking

2. Essay evaluation Paired comparison

3. Critical incidents

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4. Checklists

5. Graphic rating scale

6. Forced choice method

7. MBO

Individual evaluation methods

a. Confidential report: It is mostly used in government organizations. It is a descriptive report prepared, generally at the end of every year, by the employee's immediate superior. The report highlights the strengths and weaknesses of the subordinate. The report is not data based. The impressions of the superior about the subordinate are merely recorded there. It does not offer any feedback to the appraisee. Since the report is generally not made public and hence no feedback is available, the subjective analysis of the superior is likely to be hotly contested.

b. Essay evaluation: Under this method, the rater is asked to express thestrong as well as weak points of the employee's behavior. This technique is normally used with a combination of the graphic rating scale because the rater can elaborately present the scale by substantiating an explanation for his rating.

c. Critical incident technique: Under this method, the manager prepares lists of statements of very effective and ineffective behavior of an employee. These critical incidents or events represent the outstanding or poor behavior of employees on the job. The manager maintains logs on each employee, whereby he periodically records critical incidents of the workers behavior.

d. Checklists and weighted checklists: Another simple type of individual evaluation method is the checklist. A checklist represents, in its simplest form, a set of objectives or descriptive statements about the employee and his behavior.

e. Graphic rating scale: Under this method, a printed form, as shown below, is used to evaluate the performance of an employee. A variety of traits may be used in these types of rating devices, the most common being the quantity and quality of work. The rating scales can also be adapted by including traits that the company considers important for effectiveness on the job. From the graphic rating scales, excerpts can be obtained about the performance standards of employees.

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f. Forced choice method: This method was developed to eliminate bias and the preponderance of high ratings that might occur in some organizations. The primary purpose of the forced choice method is to correct the tendency of a rater to give consistently high or low ratings to all the employees.

g. Management by objectives (MBO): MBO represents a modern method of evaluating the performance of personnel. Thoughtful managers have become increasingly aware that the traditional performance evaluation systems are characterized by somewhat antagonistic judgments on the part of the rater. There is a growing feeling nowadays that it is better to make the superior work with subordinates in fixing goals. This would inevitably enable subordinates to exercise self-control over their performance behaviors. The concept of management by objectives is actually the outcome of the pioneering works of Drucker, McGregor and Odiorne in management science.

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Features

MBO emphasizes anticipatively set goals that are tangible, verifiable and measurable.

MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods).

MBO by concentrating on key result areas translates the abstract philosophy of man-agement into concrete phraseology. The technique can be put to general use (non-spe-cialist technique). Further it is ''dynamic system which seeks to integrate the com-pany's need to clarify and achieve its profit and growth targets with the manager's need to contribute and develop himself''.

MBO is a systematic and rational technique that allows management to attain

Maximum results from available resources by focusing on achievable goals. It allows the subordinate plenty of room to make creative decisions on his own.

Multiple-person evaluation techniques

a. Ranking method: This is a relatively easy method of performance evaluation. Under this method, the ranking of an employee in a work group is done against that of another employee. The relative position of each employee is tested in terms of his numerical rank. It may also be done by ranking a person on his job performance against another member of the competitive group. The quintessence of this method is that employees are ranked according to their levels of performance. While using this method, the evaluator is asked to rate employees from highest to lowest on some overall criterion.

b. Paired comparison method: Ranking becomes more reliable and easier under the paired comparison method. Each worker is compared with all other em-ployees in the group; for every trait the worker is compared with all other employees. For instance, when there are five employees to be compared, then A's performance is compared with that of B's and decision is arrived at as to whose is the better or worse. Next, B is also compared with all others. Since A is already compared with B, this time B is to be compared with only C, D and E. By this method when there are five employees, fifteen decisions are made (comparisons).

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Appraisal interview and feedback

The post appraisal interview is an essential part of the performance appraisal system. The employee gets useful feedback information about how effectively and efficiently he is able to discharge the assigned duties. It also gives the opportunity to employee to explain his views about the ratings, standards, rating methods, internal and external causes for low level of performance. The appraiser gets a chance to explain the employee his rating, the traits and behavior he has taken into account for appraisal, etc. He can utilize this opportunity to offer constructive suggestions help, guide and coach the employee for his advancement.

Performance management

The performance management process begins with analysis and descriptions of the job. The performance manger identifies essential functions in the job description and the strategic mission and goals of the department or organization unit. Standard of minimum acceptable performance are developed for the position with the employees. Additionally standards for performance that exceeds expectations may be set to encourage the employee to strive for even better results.

Throughout the appraisal period (typically one year0 the performance manager observes and provides behavioral feedback on the performance of the employee focusing on helping the employee to achieve successful performance. At the end of the appraisal period, and in collaboration with the employee, the performance manager prepares, writes, delivers and then produces a final copy of the written performance appraisal.At any point in the process, the employee and performance manager may identify needs and creates a plan for employee education, training or development in job or career related areas.

The issues related to performance management of teams and team member arise out of the variety of reporting relationships and degree of independent responsibility that teams exercise, as well as the creed to reinforce team value and efforts without undercutting individual responsibility.

By following the steps outline in this guide to performance Management, you will find that the performance management process faster improve communication with your employees. You will also achieve better result for your organization unit or department.

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An important component of the performance management process is development of employee’s work related skills, knowledge and experience. The development process offers another opportunity for you and your employee to work collaboratively to improve performance and to contribute to organizational effectiveness.

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Standard of performance

Observation and feedback

Performance Appraisal

Job description and essential functions strategic plan and annual goals

Performance Development


Limitations of performance appraisal

1. Halo error: - The “Halo Effect” is a tendency to let the assessment of an individ-ual one trait influence the evaluation of that person on other specific traits.

The “Halo Effect” refers to the tendency to rate an individual consistently high or low or average on the various traits, depending upon whether the rate is overall impression of the individual is favorable or not. This means that the halo effect allows one characteristics, observation or occurrence (either good or bad) to influence the rating of all performance factor.

This effect arises when traits are unfamiliar, ill-defined and involve personal relations.

2. Leniency or Constant Errors: - Every evaluation has his own value system, which acts as a standard against which he makes his appraisals. Relative to the true or actual performance an individual exhibits some supervisors have a ten-dency to be liberal in then ratings i.e. they consistently assign “high value” the their employees, while at other times they may have a tendency to assign consis-tently “low ratings”. The former tendency is known as “Positive leniency error”, while the later as “negative leniency errors”.

3. Central Tendency Problem: - It assigns “average ratings” to all the employees with a view to avoiding commitment or involvement, or when the rater is in doubt or has inadequate informations or lack of knowledge about the behavior of em-ployee or when he has not much time at his disposal. Such tendency seriously dis-torts the evaluations making them most useless for promotion, salary or counsel-ing purposes.

4. Similarity Error: - This type of error occurs when the evaluator rates other peo-ple in the same way he perceives himself. For example, the evaluation that per-ceives himself as aggressive many evaluate others by looking for aggressiveness. Those who show this characteristic may be benefited while others may suffer. This error also washes out if the same evaluator appraises all the people in the or-ganization.

5. Hypercritical Effect: - It is the tendency of a superior to rate people lower than their performance justifies.

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6. Reluctant to ‘Play God’: - Some managers are unwilling to ‘Play God’ by judg-ing others. Accepting the responsibility for being a judge for the future of another person causes severe anxiety in some people.

Operationalisation

Performance appraisal in Sahara India Pariwar

“Our Pariwar is committed to cherished traditions of Indian Family where there’s no

malik, but a guardian, forever guiding and encouraging the family members. This spirit of

true Bharatiya values continues to inspire us to work towards our constructive and productive

goals in a common emotional bond of caring and sharing-leading to nirantar Collective

Growth.

HR department of Sahara India Pariwar has to decide upon the content to be appraised

before the programme is approved. Generally, the content to be appraised is determined on

the basis of Job analysis. The content to be appraised may vary with the purpose of appraisal

and type and level or employees.

Appraisal factor used in Sahara India Pariwar: -

There are various factor used for Appraisal in Sahara India Pariwar–

1) Ability to plan, delegate, control and coordinate.

2) Knowledge of the job.

3) Clarity about objectives.

4) Ability to take decisions.

5) Power of expression, written and verbal.

6) Cooperation.

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7) Manner and general bearing.

8) Initiative.

9) Communication skill.

10) Attitude to work

11) Loyalty

12) Sociability

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However the content to be appraised varies from higher-level employees to these of

junior cadre employees. Such as work force assistants. There are various factors to be

appraised in junior cadre employees. They are –

1) Knowledge of work.

2) Ability to learn.

3) Initiative

4) Personality

5) Hygiene

6) Attendance

7) Ability to communicate

8) Loyalty.

Appraiser is the person who has through knowledge about the job content. In Sahara

India Pariwar, Appraisal is mainly done by –

HOD

The immediate senior

Employees appraise their own performance. (Self appraisal)

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Appraisal process of Sahara India Pariwar: -

* SAHARA INDIA PARIWAR STANDS FOR *

Emotion before Economics

Principles before Profits

Values before Wealth

Man before Money

Country before Religion

Quality before Quantity

Conscience before Corporation

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Family before Fortune

First of all performance standard is established and the employees are rated on the

basis of established standard.

The appraisal for is being rated by employees him/ her-self, and by the immediate

Superior and lastly by the HOD.

Various Scales are being used to rate the employees, Such as: -

a) Quality of work.

b) Interpersonal relation.

c) Confident.

d) Tideness etc.

On the basis of this rate scales employees are either promoted or given any increment etc or even dismiss.

The systematic appraisal is conducted on regular basis – that is annually here-

Rating Process: -

Following rating process used to rate the employees

Over All Rating: -

Outstanding (46-50)

Very Good (36-45)

Good (25-35)

Average (20-25)

Below Average (19 or less)

35


The potential of the employees is also appraised in this way:-

1. Do he/ she have potential to assume?

2. Details of training undergone during the year.

3. Indicate your training needs.

4. Special remarks if any.

Focus of the study

The focus of the study has been determining the performance appraisal system

in Sahara India Parivar and understanding its effectiveness for harnessing people’s

potential adequately. An attempt also has been made to understand the contribution of

HR practices towards organizational success.

The project has been crafted with immense effort and utmost care has been

taken to do justice to the study area concerned. The data has been sourced from

internet and books of OB/HR.

In my project, I have given a brief introduction about the topic i.e. “Performance

appraisal, in Sahara India Pariwar. It includes:-

1. It helps to strengthen the relationship and communication between superior –


2. It diagnoses the strengths and weaknesses of the individuals so as to identify

the training and development needs of the future.

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Objectives

To check the performance of the employees of SAHARA PARIVAR over a given pe-

riod of time.

To find out the effectiveness of the other human resource functions of the organiza-

tion such as recruitment, selection, training and development and get the better results

from the employees.

To find the availability of the healthy relationship and communication between supe-

rior – subordinates and management – employees.

To check the satisfaction level of employees towards the performance appraisal of

SAHARA INDIA PARIWAR.

To check the effectiveness of Performance Appraisal Programme.

Hypothesis

The HR department with its deep concern for its employees aims to have a better

understanding of people, generating awareness among them of their roles as a resource of the

organization for the attainment of its goals and objectives. With a challenge of developing a

highly skilled and flexible workforce, through continuous Performance appraisal, it seems

that HR has become an integral and indispensable part of any organization and its presence is

37


very much required for achievements of its organization goals and its success.

Limitations

Every survey has some sort of limitations and this survey has also some limitations:-

1. Time constraint: - Limited time available was not enough to convince the people

2. Awareness: - People have not exact and appropriate knowledge about the life insurance.

3. Incorrect information: - Their might be wrong information provide in the Questionnaire.

4. Un updated data: - Data collected is secondary which is not a fresh and updated.

Chapertization

CHAPTER I: - chapter one is introduction i e., significance of the problem, review of

literature, conceptualization, operationalization of the concept, focus of the study, objectives,

hypothesis, limitation.

CHAPTER II:- chapter two is explain the research methodology which includes universe

and survey population, profile of the organization, research design, sample size and

techniques, analysis pattern, data collection(primary & secondary),identified independent &

dependent variables, content analysis and applied statistical tools.

CHAPTER III: - Chapter three explain s the objectives wise analysis

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CHAPTER IV: - Chapter fourth is all about macro analysis.

CHAPTER V: - Chapter fifth is summary of major observation & recommendations

CHAPTER VI: - Chapter sixth includes questionnaires/schedule, raw analysis & tables and

Bibliography.

Notes

1. Human Resource Management : By V.S.P. Rao

2. Personal Management : By Dr. C.B. Mamoria

3. Research Methodology : By C.R. Kothari

4. Resource & Personal Management : By K. Aswathappa Human

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Research methodology

Research methodology refers to the systematic method consisting of enunciating the

problem, formulating a hypothesis, collecting the facts or data, analyzing the facts and

reaching certain conclusions either in form of solutions towards the concerned problem or in

certain generalizations for some theoretical formulation.

In the context of Sahara India Pariwar, Performance Appraisal exist in both officer

and non officer. In tune with this concept I took the subject of research project.

“Study of effectiveness of performance Appraisal of employees in Sahara India

Pariwar”

Universe: - Local strength of employees whether or not they are directly or indirectly

involved in the performance appraisal programme.

Profile of Sahara India Pariwar

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Sahara India Pariwar with Global perspective, World-class standards of efficiency and

professional and Core Institutional values. Retain its position in the country as a pioneer

organization. In this emotionally integrated family “Nobody has even felt the need for trade

union and it does not exist”.

An institution with a culture of mutual Care and Commitment, a satisfying and

exiting work environment and continuous learning opportunities.

The synergy of an action oriented management, a dedicated work force and the proper

assimilation of state of the art technology has put Sahara India Pariwar in forefront of the

country. It is established in 1978 from Gorakhpur with 3 workers with assets Rs. 2000 only.

Vision of Sahara India Pariwar

* SAHARA INDIA PARIWAR STANDS FOR *

Emotion before Economics

Principles before Profits

Values before Wealth

Man before Money

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Country before Religion

Quality before Quantity

Conscience before Corporation

Family before Fortune

Mission of Sahara India Pariwar

We not only believe but practice NO DISCRIMINATION, JUSTICE & HIGH QUALITY –

means enthusiastic, productive performance of duty ‘KARTAVYA’ towards the consumers’

worker’s survive satisfaction.

Objectives of Sahara India Pariwar:

To insure optimum use of resources for manufacturing of the better product & ser-

vices.

To generate sufficient resources for meeting the needs of expansion and growth

for servicing the investors.

To ensure customer satisfaction competitiveness through quality, delivery and

cost.

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To constantly upgrade the technology and build market oriented Research & De-

velopment in product development process development and cost reduction.

To minimize the net foreign exchange outflow without any conflicts with other

objectives.

To generate and exploid the export potential for telecom equipment services.

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Profit sharing of Sahara India Pariwar

On the onset of the 25th year (1st Feb. 2002) 25% - 50% hike in Gross Salary for Sahara

employees finds a mention in the Limca Book of Records and going for a mention in the

Guinness Book of World Records.

Core Commitments – our strength

EMOTION

Emotion – is in performance of genuine duties towards the loved ones primarily in their

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benefit, from their point of view. EMOTION is THE KEY that generates the required energy

and enthusiasm for desired quality performance.

DISCIPLINE

The enthusiastic obedience of laws and orders, which are given by the rightful authority.

DUTY

The enthusiastic obedience of laws and orders, which are given by our CONSCIENCE.

NO DISCRIMINATION

Never should we discriminate in any of our actions, reactions, attitudes, decisions,

conclusions, in any of our expressions while caring for the six healths of other human beings,

namely physical, material, mental, emotional, social and professional healths.

QUALITY

Results from honoring Rules, Regulations, Commitments, Values, Fairness, Performance of

Duties by honestly balancing one’s own and other’s own and others’ reasonable point of view

in the matters of Material & Emotional aspects.

GIVE RESPECT

To definitely make others feel important and respected by giving sincere regard to others’

feelings, reasonable wishes & thoughts with an open and receptive mind and warmth.

SELF-RESPECT

To develop a sense of respect of oneself in others’ mind that is, to generate genuine & warm

45


feelings for oneself, among others on a continuous basis.

TRUTH

Means total transparency in action, reaction, attitude and all other expressions and the

conviction to follow the right course.

COLLECTIVE MATERIALISM

Means to progress and prosper together for collective sharing and caring and not individually

or for a select group.

RELIGION

There is a religion higher than religion itself – it is NATIONALITY. We may practice our

religions in the confines of our homes, but outside, we should be Indians and only Indians.

Activities of Sahara India Pariwar

Para banking

Stringent Expense Control with the Cost of Fund including Interest Cost within

10.5% per annum.

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No Speculative Investment with Investment in Equity at 0.46% only, of the Total In-

vestment.

High-class Quality Investment, which restricts the Non-performing Asset Ratio to 1%

only.

Capital Adequacy Ratio of 23.60% when the statutory requirements are 12% only.

Housing

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Countrywide 9000 acres of company owned lade. (Including land of around 2000

acres being purchased, in the pipeline).

Shortly expanding our housing scheme with construction of more then 3 lakh

homes in 94 cities round the country in three phases.

Project worth Rs.55000 crores. (Including project worth Rs.10, 000 cr., in the

pipeline).

Media & Entertainment

26 Daily Newspaper Editions in 2 languages (Hindi/ Urdu)

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Launching 1 national and 37 regional/city round-the-clock news channels.

Shortly coming up with world class Studio, Media Institute & Media Club.

One of the largest & fully Integrated Pre - Press, On- Press and Post - Press Pro-

duction facilities in India.

Launching 48-page, broadsheet weekly news magazines with 32 editions Hindi &

one All-India, New Delhi, Mumbai, Pune & Lucknow editions in English.

Aviation

A new sophisticated fleet of 9 advanced Aviation Technology Boeing 737-800s , 737-

700,&737-400s.

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Offering a host of Customer Delight Programmers.

Engineering and Maintenance support from KLM and Lufthansa.

In the Its phase of expansion, the airline aim for a combined fleet strength of 23 air -

craft with an operation of 155 flights, across 32 destinations and offering 15000 seats

per day. We would eventually expand to a fleet strength of 45 constituting long haul

aircraft, new generation Boeing jets and regional jets.

Forthcoming project

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Consumer Products

44 brands-more then 1957quality items which ensure ultimate customer satisfac-

tion.

Seven broad product categories, which include.

1635 distribution center.

Over 6las strong sales force.

3.2 crore-consumer bases.

Information Technology

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Shall also become one of the largest News Gathering agencies with start-up points of

hundreds of locations across the nation providing text-audio news through portal.

Shall also offer varied innovative services like Telemedicine, e-mandi, e-purse (Debit

Card), Online Railway/Air Ticketing and nationwide chain of Cyber Cafes.

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Sunder ban Project

Spread over 36000 sq.kms. of water area which is the biggest Delta in the world.

Connecting Kolkata and Sunder ban with hi-tech transportation and communication

facilities, these areas would be equipped with the latest in hospitality and entertain-

ment.

This project is going to be one of its kinds in the world and shall definitely be a great,

grand-Global Destination.

Sahara Hospital

A 350- bed (expandable to 500 beds) international standard hi-tech medical aid cen-

tre.

To be set up in association with Apollo Hospital and Enterprises Ltd.

Coming up on 40 acres of land in Gomti Nagar, Lucknow.

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Research Design

A research design is an arrangement for the analysis and the collection of data in a manner

that combine relevance to the research purpose with economy in procedure.

Research design provides decisions regarding:

1. What is the study about?

2. Why is the study being made?

3. What type of data is required?

4. Where the required data can be found?

5. What will be the sample design?

6. How will the data be analyzed?

The design of this research is descriptive in nature because it is describing the characteristics

of a particular individual, or of a group.

In this study some facts are taken in to consideration which belongs to SAHARA INDIA

PARIVAR.

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The descriptive design of the study obtains the information regarding full organization. The

facts, characteristics, nature of the SAHARA INDIA PARIVAR are taken in to consideration

with the help of primary and secondary data.

Sample Size: - It refers to the no. of employees selected from the universe to the sample

which is a proper representation of the universe the manner of selecting the sample.

For the purpose of conducting the survey a questionnaire was prepared and a simple

random sampling technique was used to select the respondent covering all the four

department

DATA COLLECTION

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There are two methods of collecting data. They are primary method and secondary method.

SECONDARY DATA COLLECTION: - Secondary data have been collected from different

websites, company journals.

PRIMARY DATA COLLECTION: - Primary method of data collection i.e. though

questionnaire and interview.

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Objective wise analysis of data of Sahara India Pariwar

1. Awareness of Performance Appraisal Programmes:

94% of the employees in Sahara India pariwar are aware about the prevailing

structure of performance appraisal programme. At the same time 6% are still unaware about

the same.

2. Fulfillment of Objective:

80% of the employees in Sahara India Pariwar are of the opinion that the present system for

performance appraisal fulfills the required objective of appraisal. This shows the most of the

employees are satisfied with the appraisal programme they are undergoing.

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3. Importance of employees in Appraisal Programme :

83% of the employees in Sahara India Pariwar feels that there suggestions and

interests are considered. While other 17% of the employees does not feel the same.

4. Effectiveness of Performance Appraisal Programme:

71% of the employees in Sahara India Pariwar feels that existing programme is capable

enough to analyze the strengths and weakness of employees while other 29% does not feel

that performance appraisal programme is not such effective.

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5. Time span of Performance Appraisal Programme:

40% of employees in Sahara India Pariwar gives their opinion that performance appraisal

programme should be conducted half yearly, while 8% of employees agree that it should be

conducted monthly and 26% of the employees agree with quarterly and annually conduction

of performance appraisal.

6. Purpose of performance Appraisal:

40% of the employees of Sahara India Pariwar say that promotion is the main purpose of

performance appraisal. 34% of the employees feel that training is the main purpose of

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performance appraisal and 26% of the employees feels that pay increase is the purpose of

performance appraisal.

7. Personal Involvement of Employees:

48% of the employees of Sahara India Pariwar feels that there is personal involvement of

employees in the performance appraisal process while other 52% of the employees does not

feel the same.

8. Need of the Training:

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68% of the employees in Sahara India Pariwar feels that existing process of performance

appraisal is able to recognize the need of the training while other 32% of the employees does

the feel the same.

9. Behavioral Aspects:

37% of the employees of Sahara India Pariwar feel that existing appraisal method

completely change the behavioral aspects of employees while 49% of the employees feel

that, it changes partially and other 14% of the employees feel that it does not changes at

all.

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10. Satisfaction level:

80% of the employees of Sahara India Pariwar are satisfied with the existing

performance appraisal system while other 20% of the employees are not satisfied with the

existing system.

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Macro analysis

Comparative analysis of Sahara India Pariwar, Reliance Infocomm ltd and

Pradeshik Cooperative Dairy Federation ltd.

1. Role of Performance Appraisal Programme:

80% of the employees in Sahara India Pariwar agrees that performance appraisal

programme is well defined for various level of employees while 73% of the employees in

Parag and only 40% of the employees in Reliance agrees that the Appraisal programme is

well defined for various level of employees.

This shows that performance appraisal programme plays a major role in Sahara India

Pariwar.

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2. Personal involvement of employees in appraisal process: -

About 48% of the employees in Sahara India Pariwar feels that there is personal

involvement of employees in appraisal process while 40% of the employees parag and only

25% of the employees in Reliance feels the same.

This shows that personal involvement of the employees in Sahara India Pariwar is

higher than the any other organization.

3. Purpose of Performance Appraisal:

About 40% of the employees of Sahara India Pariwar say that promotion is the main

purpose of performance appraisal while 60% of the employees in Reliance and 74% of the

employees in Parag say that promotion is the main purpose.

Most of the employees are in the view that promotion is the main purpose rather

training and pay increase.

4. Time span of Performance Appraisal programme:

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About 40% of the employees in Sahara India Pariwar are of the opinion that

performance appraisal programme should be conducted Half yearly rather monthly, quarterly,

annually while 35% of the employees in Reliance are of the opinion that it should be

conducted Annually and 40% of the employees in Parag are of the view that it should be

conducted quarterly.

Performance Appraisal should be conducted annually as it saves time, money and is

accurate.

5. Fulfillment of needs of trainings:

68% of employees in Sahara India Pariwar agrees that existing process of Appraisal

programme is able to recognize the need of the training while 80% of the employees in Parag

and only 45% of the employees in Reliance agrees the same.

6. Behavioral aspects:

About 49% of the employees in Sahara India Pariwar feel that Performance Appraisal

methods partially change the behavioral aspects of employees while 80% of the employees in

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Parag and only 50% of the employees in Reliance feels the same.

Thus most of the employees feel that the existing performance appraisal methods and

techniques partially change the behavioral aspects.

7. Role of Employees:

About 43% of the employees in Sahara India Pariwar think that when self appraisal is

done, the employee is honest while only 5% of the employees in Reliance and only 7% of the

employees in Parag thinks the same.

This means that when self-appraisal is done, the most of the employees does not seem

to be honest.

8. Awareness of Performance Appraisal Programme:

94% of the employees in the Sahara India Pariwar are aware that about the prevailing

structure of performance appraisal while 93% of the employees in Parag and 75% of the

employees in Reliance are aware that performance appraisal prevail in the organization.

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This means that employees of Sahara India Pariwar are much more aware about the

implementation of performance appraisal than in any other organization.

9. Satisfaction Level:

About 80% of employees in Sahara India Pariwar are satisfied with the performance

Appraisal system while 73% of the employees in Parag and 65% of the employees in

Reliance are satisfied with the existing performance appraisal system.

This shows that most of the employees are satisfied with the existing performance

Appraisal system.

Recommendations

Performance Appraisal programme can be made effective and successful if the following

suggestions are considered:

1. The appraisee should be provided with regular, constructive feedback concerning

his progress in performance appraisal and implementation of the newly acquired

abilities.

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2. It should be recognized that all the appraisee do not progress at the same rate.

Therefore, flexibility should be allowed in judging the rates of progress in the per-

formance appraisal programme.

3. If possible, the personal involvement or active participation of the appraisee

should be got in the performance appraisal programme.

4. As the appraisee acquire new knowledge, skills or attitudes and applies them in

job situation, he should be significantly rewarded for his efforts.

5. Suggestion and interest of employees should be considered as it motivates em-

ployees to perform better in future than present.

6. Not only promotion needs is considered as the man purpose of performance ap-

praisal but training need should also be considered.

7. Attempt should be made to determine if the appraisee has intelligence, maturity

and motivation to successfully complete the performance appraisal programme.

8. The appraise should be helped to see the need of training by making him aware of

the personal benefits he can achieve through better performance. He should be

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helped to discover the reward and satisfaction that might be available to him

through changes in behavior.

Questionnaire

Name…

Age …

Place …

1. Are the employees in Sahara India pariwar are aware about the prevailing struc-

ture of performance appraisal programme?

a. Yes b. No

2. Are the present system for performance appraisal fulfills the required

objectives of appraisal?

a. Yes b. No

3. Are the employees in Sahara India Pariwar feels that there suggestions and

interests are considered?

a. Yes b. No

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4. Is the existing programme capable enough to analyze the strengths and

weakness of employees?

a. Yes b. No

5. What should be the Time span of Performance Appraisal Programme?

a. half yearly b. monthly

c. quarterly d. annually

6. What is the Purpose of performance Appraisal?

a. promotion b. training

c. pay increase

10. Should there be Personal Involvement of Employees in the performance

appraisal process?

a. Yes b. No

11. Is the existing process of performance appraisal is able to recognize the

need of the training?

a. Yes b. No

12. Is the existing appraisal method change the Behavioral Aspects of

Employees?

a. Completely b. partially

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c. not at all

13. Are the employees of Sahara India Pariwar are satisfied with the existing

Performance appraisal system?

a. Yes b. No

Thank you for your cooperation and giving your precious time.

***

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Raw Analysis

Q.1 Are the employees in Sahara India pariwar are aware about the

prevailing structure of performance appraisal programme?

Response Employee

Yes 94

No 06

Q.2 Are the present system for performance appraisal fulfills the

Required objectives of appraisal?

Response Employee

Yes 80

No 20

Q3. Are the employees in Sahara India Pariwar feels that there

suggestions and interests are considered?

Response Employee

Yes 83

No 17

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Q4 Is the existing programme capable enough to analyze the

strengths and weakness of employees?

Response Employee

Yes 71

No 29

Q5. What should be the Time span of Performance Appraisal?

Programme?

Response Employee

Half yearly 40

Monthly 08

Quarterly 26

Annually 26

Q.6. What is the Purpose of performance Appraisal?

Response Employee

Promotion 40

Training 34

Pay Increase 26

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Q.7 Should there be Personal Involvement of Employees in

the performance appraisal process?

Response Employee

Yes 48

No 52

Q8 Is the existing process of performance appraisal is able

to recognize the need of the training?

Response Employee

Yes 68

No 32

Q9. Whether the proper facility provided to implement the change?

Response Employee

Completely 37

Partially 49

Not at all 14

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Q10. Are the employees of Sahara India Pariwar are satisfied with

the existing Performance appraisal system?

Response Employee

Yes 80

No 20

Bibliography

1. www.google.com

2. www.talash.com

3. www.winkipedia.com

4. www.saharaindiapariwar.org

5. www.sahara.in

6 wikipedia.org/wiki/Sahara_India_Pariwar. en.

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http://www.winkipedia.com/

http://www.talash.com/

http://www.google.com/


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Performance Appraisal in Sahara India Pariwar (1)

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