Performance Appraisal Sahara group

8/12/2019 Performance Appraisal Sahara group

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PROJECT REPORT

ON

PERFORMANCE APPRAISAL

AT

SAHARA GROUP

UNDER THE GUIDANCE OF:

Mr. Subrata Chowdhury

S!"or Co!#u$ta!t

%P"t!y &ow# &u#"!## I!#"'ht(

SU&MITTED &):Nha Shar*a

ROLL NO. +,--++-,/

S01"a$"2at"o!: PGPM3HR

INSTITUTE OF MANAGEMENT TECHNOLOG)

%CENTRE FOR DISTANCE LEARNING(

GHA4IA&AD


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E5ECUTI6E SUMMAR)

Human Resource (or personnel) management, in the sense of getting things done through

people, is an essential part of every managers responsibility, but many organizations find it

advantageous to establish a specialist division to provide an expert service dedicated to

ensuring that the human resource function is performed efficiently.

eople are our most valuable asset! is a clich", #hich no member of any senior

management team #ould disagree #ith. $et, the reality for many organizations are that

their people remain under valued, under trained and under utilized.

erformance %ppraisal is the process of assessing the performance and progress of an

employee or a group of employees on a given &ob and his ' their potential for future

development. t consists of all formal procedures used in the #oring organizations to

evaluate personalities, contributions and potentials of employees.

erformance %ppraisal is a crucial activity for organizations that are looing for gro#th and

profit maximization in this ever*increasing competitive environment. +his pro&ect report is

a revie# based on theory as #ell as research and experience.

+he essential components of an effective performance appraisal system consist of

understanding its oundations and the essential steps that lay the foundation. t is also

necessary to recognize the -b&ectives and enefits of this system. or benefit realization it

is necessary to dentify /ey Result %reas (/R%s) i.e. 0oal 1etting and monitor resulting

erformance so that a meaningful relationship bet#een performance, re#ard and

development of re2uired sills, through counseling 3 if re2uired, can be established. inally

lot of brainstorming is re2uired to be done to devise a sound appraisal system by evaluating

available techni2ues and implementation processes. -ne must remember that performance%ppraisal is an inexact, human process and it is 2uite a challenge to actually implement it

successfully.

erformance appraisal system has gone through a sea change over a period of time. n the

beginning the process #as non*transparent and the employee #as ept in dar about his

performance. 4o systematic exercise #as done and the entire process #as arbitrary. +hese

earlier performance appraisal methods are discussed.


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+he current processes of performance appraisal involve self*appraisal by the employee too.

Thu# th #y#t* ha# 'o! throu'h th 0ha# o7 !o!3tra!#0ar!1y to tra!#0ar!1y. n

the transparent system of appraisals appraisee is taen into confidence and the #hole

process is interactive. Revie# process #ith employees is designed in such a #ay that

employees become a#are of #hat is expected from them, receive timely feedbac and

recognition for their achievements. 1ome of these relatively transparent methods are

%ppraisal 5iscussion*5ialogue 6ethod of %ppraisal, 7ompetency ased %ppraisal

1ystem, otential %ppraisal, erformance and 5evelopment lanning. 8hile ne# frontiers

to performance appraisal include 6anagement by -b&ectives, 9:;< eedbac and alanced

1corecard. n this technology driven era appraisals too can be done electronically.

eA00ra"#a$system #ith its salient features, benefits and process has been covered.

e# blan formats of different appraisal methods and processes have been included as

A!!8ur in the report to sho# ho# todays successful organizations are trying to assess

and evaluate their employee performance.

have taen a sample size of =;; to conduct the survey. t has been found that employees

are a#are about the various methods adopted for appraising the performance. >mployees

are not fully satisfied #ith the feedbac and #ith the performance appraisal is beingdone.+hey #ant more transparency. rom the data it is clear that positive feedbac

encourages the employees to perform better #hile negative feedbac demoralizes them. t

should be noted that the appraisal form for each &ob position should be different as each &ob

has different no#ledge and sill re2uirements. +here should not be a common appraisal

form for every &ob position in the organization. +he &ob and role expected from the

employees should be decided #ell in advance and that too #ith the consensus #ith them.

+ransparency into the system should be ensured through the discussion about the

employees performance #ith the employee concerned and trying to find out the grey areas

so that training can be implemented to improve on that.


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TA&LE OF CONTENTS

CHAPTER3- INTRODUCTION

7oncept of performance appraisal?

7hange?

oundations of performance appraisal

@ob profile

-b&ectives?

>ffective appraisal process

+ype of goals?

5esigning an appraisal process

CHAPTER39 RE6IE OF LITERATURE

6ethods of appraisal

7ompetency based appraisal system

9:;A feedbac

+he steps of implementation are

CHAPTER3 RESEARCH METHODOLOG)

CHAPTER3; DATA ANAL)SIS

CHAPTER3/ CONCLUSION AND SUGGESTION

CHAPTER3< ANNE5URE

Buestionnaire

CHAPTER3= &I&LIOGRAPH)


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CHAPTER3-

INTRODUCTION

SAHARA GROUP

1ahara ndia ari#ar is a ma&or entity on the corporate scene having diversified business

interests that include inance, nfrastructure C Housing, 6edia C >ntertainment,

7ommodity 1ales #ith 1ervices and Retail 7hain, 7onsumer roducts, 6anufacturing and

nformation +echnology. Buality is our essence and #e, at 1ahara ndia ari#ar, have

al#ays stressed on the Bualitative aspect. 7onse2uently in this run for 2uality, 2uantity has

al#ays pursued us. 8e loo for#ard to reaching the zenith and reaffirm our commitment to

the process of sound nation*building.

7ore 7ommitments

>motion? >motion is in erformance of genuine duties to#ards the loved ones

primarily in their benefit, from their point of vie#. >6-+-4 is +H> />$ that generates

the re2uired energy and enthusiasm for desired 2uality performance.

5iscipline? +he enthusiastic obedience of la#s and orders, #hich are given by the

rightful authority.


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5uty? +he enthusiastic obedience of la#s and orders, #hich are given by our

7-417>47>.

4o 5iscrimination? 4ever should #e discriminate in any of our actions, reactions,

attitudes, decisions, conclusions, in any of our expressions #hile caring for the six healths

of other human beings, namely physical, material, mental, emotional, social and

professional healths.

0ive Respect? +o definitely mae others feel important and respected by giving sincere

regard to othersD feelings, reasonable #ishes C thoughts #ith an open and receptive mind

and #armth.

1elf*Respect? +o develop a sense of respect for oneself in othersD mind, i.e. to

generate genuine C #arm feelings for oneself among others on a continuous basis.

+ruth? 6eans total transparency in action, reaction, attitude and all other

expressions and the conviction to follo# the right course.

7ollective 6aterialism? 6eans to progress and prosper together for collective sharing

and caring and not individually or for a select group.

Religion? +here is a religion higher than religion itself * it is 4%+-4%E+$. 8e

may practice our religion in the confines of our homes, but outside, #e should be ndians


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and only ndians. 4ationality is thus above religion but HF6%4/45 is above

4ationality.


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PHILOSOPH)

SAHARA INDIA PARIAR>S PHILOSOPH) 3 ?Collective Materialism?

n any human relationship, it becomes imperative to tae into consideration the materialistic

aspect of life * #e do so but by giving it second priority.

+he first priority is given to emotional aspect and #ith perfect blending of materialism #ith

emotionalism, results in continuous collective gro#th for collective sharing and caring, that

gives an impetus to our philosophy * GCOLLECTIVE MATERIALISMG.

&HARTI)ATA

+here is a religion higher than religion itself * it is the 45%4 4%+-4%E+$. +he s#irl

of the +ricolour never fails to move a 1ahara 8orer. or #e believe, it is the great feeling

that transcends all castes, creed and sects. harat arva is 7elebrated on every :th of

@anuary and =Ith of %ugust #ith a spirit and gaiety rarely seen.t comes from our heart.


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"Saharasri" Subrata Roy Sahara

Managing Worker & Chairman

Sahara India ari!ar

n business profit earnings and overall gro#th of business get the highest priority and are

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

ones is in the utilisation of profit, be it for best possible upliftment of its #orforce and for

espousing 1ocial, 4ational 5evelopment causes or for rendering services to manind as a

#hole. ulfilling the Bualitative aspect of utilisation of profit, the #orldDs largest family

J1ahara ndia ari#arD is proud to have reached today ne# horizons of gro#th and

development.

-n the basis of our philosophy of 7ollective 6aterialism #e have al#ays given importance

to the fact that profit earning is the Buantitative aspect #hereas the proper utilisation of

profit is the Bualitative aspect. ronically, #e only recognise and get recognised by the

Buantitative aspect.

, therefore earnestly appeal to one and all in olitics, 6edia, usiness etc. that every

action, reaction, selection, appreciation or criticism should be oriented strictly to#ards the


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Bualitative aspect. appeal to anybody and everybody to accord top priority to Bualitative

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

manind any#here and every#here.

+oday, feel proud of the fact that am the 0uardian of the 8orldDs largest family.

erhaps, am the #orldDs only person #hose family is so vast, so disciplined, so dedicated

and so committed. 1uch a vast family as 1ahara ndia ari#ar has a grand and infinite

future and am sure that #e #ill sustain our duty, consciousness, discipline and dutifulness

#ith a sense of dedication, as #e have al#ays done in the past, so that together #e could

build an ndia full of energy and radiance.

Our Ch"7 Guard"a!># C$a###

-ur 7hief 0uardianDs classes for teaching of lifeDs philosophy, the psychological aspect, that

is the emotional aspect of life, in other #ords the realities of life are generally =; hour

sessions and he must have addressed thousands of such classes. He strongly believes that

the chief of any organisation should primarily be a teacher, a guide and a guardian.

Sha!t"@ Suh : Sa!tu#ht"

+hrough this boo it is absolutely convincing that the most dominating need of every

human is strong security feeling of life, health, material, respect and love and then more

material, more respect and more love. K hours * 9:I days all your actions, reactions,

planning and all expressions revolve around the above needs and continuous achievement

of all these depends on you, and you need not depend on others.

Maa!3Sa**a!@ At*a#a**a!

>motions are of t#o inds * love and respect. Eove is an inferior emotion #hich has been

given by 0od to fulfill your reasonable, unreasonable needs. ut in human society since #e

have the thining po#er, respect for others and sense of self*respect are the most superior

emotions.


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% night vie# of 1ahara 1haher,

Eucno# in all its grandeur

1ahara ndia ha#an, Eucno#

1ahara ndia +o#er, Eucno# 1ahara ndia 7entre, Eucno#

hopal onal -ffice, 1ahara ndia /un&

@aipur onal -ffice, 1ahara ndia

7hambers


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/olata 7orporate -ffice, 1ahara ndia

1adan

atna onal -ffice, 1ahara ndia Lihar

5elhi 7orporate -ffice, 1ahara ndia

7omplex

erspective of 1ahara 1tar, 6umbai

0orahpur onal -ffice, 1ahara ndia

4ietan

Laranasi onal -ffice, 1ahara ndia /ashi

4ietan

Hyderabad onal -ffice, 1ahara 6anzil

Eounge at 7hairmans -ffice, 1ahara

1haher, Eucno#


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GRATITUDE

8e are indebted to those nation*builders, nation * lovers, guides, visionaries,

eminent personalities, artistes, industrialists (#hose photographs are exhibited here)

and express our profound respect and gratitude, #ho have inspired us #ith their

encouraging thoughts in our assemblies and meetings. 8e have al#ays beenencouraged by their proper, valuable and thoughtful revie#s. 8e convey our best

#ishes from the innermost core of our hearts to these reno#ned personalities for

their continuous contribution to#ards the overall progress of our motherland and

human society.

1hri 1ubrata Roy 1ahara, our 7hief 0uardian ...

...#ith 4obel Eaureate Eate 6other +eresa

... #ith His Holiness, +he 5alai Eama

... #ith 1hanaracharya,

adriaashram eeth


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... #ith ormer 1hahi mam of @ama

6as&id, 5elhi, Eate %bdullah uhari

... #ith 1pritual 0uru 1hri 1hri

ravishanar

... #ith Reno#ned $ogacharya, 1#ami

Ram 5ev

... #ith Her >xcellency, resident of

ndia, 6rs. ratibha atil

...#ith 5r. 6anmohan 1ingh,

Honourable rime 6inister of ndia... #ith His Royal Highness, rince of

8ales, rince 7harls at london and later

in 4e# 5elhi


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INTRODUCTION TO THE TOPIC

erformance %ppraisal is the process of assessing the performance and progress of

an employee or a group of employees on a given &ob and his ' their potential for

future development. t consists of all formal procedures used in the #oring

organizations to evaluate personalities, contributions and potentials of employees.

Co!10t o7 Pr7or*a!1 A00ra"#a$:

+he concept of erformance %ppraisal can be explained #ith the analogy illustrated

belo#?

+he head of the ey represents the uni2ueness of the employee. 4o t#o

employees are alie.

+he ring represents the managements re2uirement *the &ob content.

+he shaft represents the communication bet#een the employee and the

company, the transmission of the tas and the response from the performer.

Cha!':

Performance appraisal process has gone through the phase of non-transparency

to transparency.

n this transparency phase, a performance appraisal can be defined as a structured

formal interaction bet#een a subordinate and supervisor, that usually taes the form


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of a periodic intervie# (annual or bi*annual), in #hich the #or performance of the

subordinate is examined and discussed, #ith a vie# to identifying #eanesses and

strengths as #ell as opportunities for improvement and sills development.

FOUNDATIONS OF PERFORMANCE APPRAISAL

erformance %ppraisal assesses ho# #ell people have been doing their &obs and #hat they

must do to be better in their &obs. t deals #ith the content of the &ob and #hat they are

expected to achieve in each aspect of their #or. ollo#ing are the foundations in

erformance %ppraisal process?

. Job Pro7"$ :

@ob description concentrates more on the definition of tass the &obholder has to

accomplish. t includes details of reporting relationship and normally covers the

overall purpose of the &ob. t indicates ho# an individuals &ob #ill contribute to the

achievement of ob&ectives of a team or a department and, ultimately the mission of

the organization.

II. Ob1t"#:

%n ob&ective describes something, #hich has to be accomplished. -b&ectives define

#hat organizations, functions, departments, teams and individuals are expected to

achieve.

+here are t#o types of ob&ectives?

i Work or O#erationa$ Ob%eti'es(

t refers to the results to be achieved or the contribution to be made to the

accomplishment of team, departmental and corporate ob&ectives.

ii )e'e$o#menta$ ob%eti'es(

t is concerned #ith #hat individual should do and learn to improve their

performance and'or their no#ledge, sills and competencies (training and

personal development plans).


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. Co*0t!1"#:

7ompetencies refer to the behavioral dimensions of a role. t is the behavior

re2uired of people to carry out their #or satisfactorily. 7ompetencies are #hat

people bring to a &ob in the form of different types and levels of behavior. +hey

govern the process aspects of &ob performance.

L. 6a$u# :

ncreasingly, organizations are setting out the core values that they thin should

govern the behavior of all their employees. Lalue statements may be prepared #hich

define core values in areas such as care for customers, concern for people,

competitiveness, excellence, gro#th, innovation.

THREE ESSENTIAL STEPS FOR EFFECTI6E PERFORMANCE APPRAISAL

+he process of getting to no# the people #ho #or for the organization involves three

essential steps viz. tra"!"!'@ a$uat"o! a!d r"w.

I. Tra"!"!':

1uccessful tra"!"!' is the implementation of a system in #hich everyone in the

#orplace is geared to#ards improvement. t involves a hands on approach in #hich

the employee is encouraged to evaluate himself or herself under the is made

complete #ith the leadership of the appraiser. 7arefully administering praise coupled

#ith constructive criticism eeps the #orforce on its toes.

II. Ea$uat"o!:

+he best methods for employee a$uat"o!are based on results and behavior. 8hile

conducting performance appraisal based on employees characteristic traits is 2uite

common, the results are often sub&ective and unsatisfactory. % results*based

approach to performance appraisal is by far the cleanest, most ob&ective method of

tacling the complex tas of evaluation. t uses a rating system to

measure productivity #ithin a given timescale.


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III. R"w:

+he r"w process should, again, employ the techni2ues of interactivity. efore

sittin do#n together, the appraiser should give the employee a chance to revie# himself

or herself. +his not only empo#ers the employee, but also saves a lot of time and

possible contention during the actual discussion. nitially the appraiser should #al the

employee through the process. +he successful supervisor starts out #ith an overvie# of

#hy the revie# session is needed. +hen the supervisor taes the employee do#n a point*

by*point list of every aspect of the &ob. n each case, the employee should be given a

chance to describe his or her achievements and shortcomings. +he supervisor should

al#ays supplement this #ith added insight.


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O&JECTI6ES OF PERFORMANCE APPRAISAL

+he ob&ectives and benefits of erformance %ppraisal system can be summarized as under?

Ob1t"#:

5ata relating to erformance %ppraisal of employees are recorded, stored and used

for several purposes lie?

Eet the employees no# #here they stand in so far as their performance is

concerned and to assist them #ith constructive criticism and guidance for the

purpose of their development.

%ssessment of sills #ithin an organization.

1et targets for future performance.

>ffect promotions based on competence and performance.

1trengthen relationship bet#een superior and subordinate.

%ssess the training and development needs of employees.

dentify the strengths and #eanesses of employees.

5ecide upon a pay raise (increments).

mprove communication as it not only provides a system for dialogue bet#een

the superior and the subordinate, but also improves understanding of personal

goals and concerns. +his can also have the effect of increasing the trust bet#een

the appraiser and appraisee.

5etermine #hether human resource programs such, as selection, training and

transfers have been effective or not.

EFFECTI6E APPRAISAL PROCESS


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8hen it comes to performance appraisal, managers and employees agree about one thing?

+hey hate going through them. >mployees, managers and HR experts agree that fear, guilt,

responsibility and resentment are the real reasons #hy most employees dread the appraisal

process. esides some thin that it is a ritual that is mandatory to follo#.

%n effective revie# process helps organizations in three areas?

=. evaluation and improving personnel selection and training systemsS

. preventing #rongful terminationS and

9. increasing real employee diversity

. 0ood appraisals start #ith information from multiple sources, and they evaluate

employees at all levels from top to bottom.

. +his system re2uires both the appraisee and appraiser to &ointly assess the

employees ability to complete the duties and achieve the goals set forth in the

previous appraisal.

. HR professionals should consider the follo#ing steps and mae the appraisal process

simple yet effective?

+he performance %ppraisal form should reflect the strategic ob&ectives of the

company. 6any organizations use a form that contains several sections.

+he results and impact section should address accomplishments related to &ob

responsibilities, goals and pro&ects. t is a revie# of past performance.

% sills and abilities section should discuss the #ays those results #ere

accomplished. y listing the core competencies for each &ob classification 3 and

for the entire organization 3 this section can address the inds of behavior that

are critical for success.

L. %ppraisal results, either directly or indirectly, determine re#ard outcomes. +he

better performing employees may get the ma&ority of available merit pay increases,

bonuses and promotions, #hile the poorer performers may re2uire some form of

counseling or in extreme cases no increases in pay. +he assignment and &ustification

of re#ards and penalties through performance appraisal is a very uncertain and


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controversial matter and conveys both satisfaction as #ell as dissatisfaction #ith an

employees &ob performance. 8hatever is the case, organizations should foster a

feeling that performance appraisals are positive opportunities that provide for overall

development of the employee, in order to get the best out of the people and the

process. Hence 0r7or*a!1 a00ra"#a$# #hou$d b 0o#"t" 80r"!1# a!d "t

#hou$d !r b u#d to ha!d$ *attr# o7 d"#1"0$"!.


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IDENTIFICATION OF BE) RESULT AREAS %BRAS( GOAL SETTING

1etting of /ey Result %reas i.e. goals is one of the various parameters of performance

evaluation. +hese are also no#n as the +argets or erformance ndicators (). +arget

setting is the first step in the appraisal process, based on #hich the employee is appraised.

I. Th Pur0o# or Ob1t" o7 Tar't Stt"!'

>nsure that each individual is #oring to#ards clearly stated ob&ectives that tie into

the division goals.

rovides a sound basis to improve performance.

>ncourages open communication concerning expected results and progress to#ards

results.

Helps the individual no# Ho# he'she is doing! compared to #hat his'her

manager expects.

>ncourages comparison on individual ob&ectives to identify overlapping or omitted

ob&ectives.

Helps in salary revie#, and self*development.

+he recent trend from a focus on traits or behavior to a results*oriented approach has

seen the emergence of ob&ectives setting as a ey issue. Ho#ever, managers should

attempt to agree ob&ectives #ith their staff rather than setting them themselves for the

forthcoming period during appraisal discussion. +hese ob&ectives or targets should

comply #ith the mnemonic SMART i.e. Specific, Measurable, Achievable, Realistic

and Time*bound.

II. Ty0 o7 Goa$#:

-ne may have to set multiple goals combining goals at different levels viz. the long*

term goal, the short*tem goal and the minimum or standard goal.


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-. Th $o!'3tr* 'oa$:

9. Th #hort3tr* 'oa$:

.

. Th M"!"*u* or Sta!dard 'oa$:

+he minimum or standard goal is the cut*off point for signaling the existence of or

potential for a performance problem. Eie short*term goals, minimum standards

are set for a limited period but for longer duration 3 perhaps one to t#o years.

6inimums'standards are negotiated lie short*term goals and must conform to thefollo#ing criteria?

+hey must be less than or e2ual to current average'typical performanceS and

+hey cannot be #orse than the #orst performance for any previous period.

III. SMART 1r"tr"a 7or 0r7or*a!1 'oa$#

SMART Pr7or*a!1

Goa$#Cr"tr"a Ch1$"#t

S01"7"1

1tates in clear terms #hat

outcome, result or

behaviour is to be

achieved.

5oes it specify

* mproved level of 2uality, 2uantity, time or use

of resources.

* % ne#'innovative result, faster time line, or

* %n improved behavioral outcomeT

5oes it have a clearly stated singular resultT

Ma#urab$

ncludes measurable results

or a description of the

desired outcome.

8ill you no# from information, data or

observation #hen it is achievedT

5oes it specify*8hatT Ho# muchT Ho# #ellT

A1h"ab$


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% realistic expectation, given

time and resources

%re resources, authority level, and re2uisite

sills in placeT

5oes it re2uire a stretch of effortT

Ra$"#t"1+here is a clear tie to goals of

the department, division etc.

8ill it matter #hen it is doneT

5oes the ob&ective support relevant goalsT

5oes it deal #ith a ey aspect of the &obT

T"* &ou!d

+here is a time limit or

deadline by #hich the

ob&ective must be achieved

and there may be a time frameto trac phases of completion

in an action plan.

8hen are the goals to be completedT

s there a timetable for milestones or

checpointsT

DESIGNING AN APPRAISAL PROCESS

5esigning an appraisal program poses several 2uestions, #hich need ans#ers. +hey are?

=. 8hose performance is to be assessedT

. 8ho are the appraisersT

9. 8hat should be evaluatedT

K. 8hen to appraiseT

I. 8hat problems are encounteredT

:. Ho# to solve the problemsT

U. 8hat methods of appraisal are to be usedT

-. ho# 0r7or*a!1 #hou$d b a####d

+he ans#er is obvious 3 employees. 8hen #e say employees, it is individual or

teamsT 1pecifically, the appraisee may be defined as the individual, #or group,

division or organization.

9. ho ar th a00ra"#r#


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%ppraisers can be immediate superiors, specialists from the human resource

department, subordinates, peers, committees, clients, self*appraisals or a combination

thereof.

. hat #hou$d b a$uatd

-ne of the steps in designing an appraisal program is to determine the evaluation

criteria. t is obvious that the criteria should be related to the &ob. +he criteria for

assessing performance can be?

a. Buality C Buantity

b. +imeliness

c. 7ost >ffectiveness

d. 4eed for supervision

e. nterpersonal impact

f. nnovation C 7reativity

g. roblem %nalysis

h. 7ustomer orientation

i. 6aret -rientation

&. >ntrepreneurial 5rive

. 4egotiation sills etc.

+his is not an exhaustive list, but several other parameters too can be added

depending on &ob re2uirements and organizational needs.

;. h! to a00ra"#rat

+he most fre2uent rating schedules are semi*annual and annual. 4e# employees are

rated more fre2uently than older ones. 1ome practices call for ratings?

%nnually as per company practice

%fter first : months of employment

Fpon promotion or #ithin 9 months after promotion


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8hen the &ob occupied has been reevaluated up#ard

Fpon special re2uest, as #hen the employees salary is belo# the average pay

/. hat ar th 0rob$*# r$atd to Pr7or*a!1 A00ra"#a$

%n ideal erformance %ppraisal is done #hen the evaluation is free from biases and

idiosyncrasies of the evaluator. +here are many factors of appraisal that lead to

failure of the system?

a. N'at" att"tud toward# Pr7or*a!1 A00ra"#a$:

+here is a large population of managers #ho are hostile or indifferent to the

erformance %ppraisal processes and'or do it badly if they do it at all.

i. Hostility from the appraiser:

+he appraiser reacts indifferently to the appraising system because he

believes that it is a #aste of time. %t times they feel that the scheme has

nothing to do #ith their o#n needs and it exists to feed the personnel

database.

ii.Hostility from the appraisee:

Hostility from the people at the receiving end arises because they feel

erformance %ppraisal is simply another method in the hands of the

managers to exercise their command and control prerogatives. +hey feel

that the data collected #ill be utilized as evidence against them. n some

cases appraisees even have a feeling that the outcome of the performance

evaluation is predetermined by the management or their superiors and the

process is completed only as a formality, due to #hich appraisees lac

interest in the entire appraisal process.

b. Halo Error:

Fnder this type of error, one mared characteristic or latest achievement or

failure of the appraisee (either favourable or unfavourable) may be allo#ed to

dominate the appraisal for the entire year.

Logical Error:


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+his is a dangerous pitfall for the inexperienced appraiser. He is very often

inclined to arrive at similar assessments in respect of 2ualities that seem

logically related.

d Constant Error:

8hen t#o appraisers rate an appraisee their ratings may be different. -ne may

sho# consistent leniency by giving him high scores, the other my consistently

rate him by giving lo# scores.

e Central Tendency:

t is also called as %verage Ratings!. Here, the appraiser tends to avoid giving

fran vie#s to the 2uestion ased or the appraiser is in doubt or he hasinade2uate information or he simply #ants to play safe and dont displease

anyone.

* Mirror-Image Error or Proection Error:

+his error arises #hen an appraiser expects his o#n 2ualities, sills, and values

in an appraisee. +he appraiser may falsely believe that if the appraisee is good

he has to be lie him (appraiser) because the appraiser considers himself as the

standard.

g Contrast Error:

+his error occurs in the se2uencing of ratings. f superior performers are rated

first, average performers are rated do#n, if poorer performers come first, the

average performers #ill be rated more highly.

h !iases of position" #e$" %ace" %eligion & 'ationality:

+here is a tendency to rate the occupant at a higher position more favorably than

the person in a lo#er position. 1imilarly rating can be biased based on sex,

religion and nationality too.

i. Lac( of #(ill in conducting )ppraisal discussion:

7onducting erformance %ppraisal discussions re2uire certain sills and

training.


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:. How to #o$ th a00ra"#r# 0rob$*#

+he best #ay to overcome the problem is to give training to the appraiser. +raining

can help improve the appraisal system to the extent that distortion occurring due to

appraiser errors such as halo, leniency, central tendency and bias are minimized.

a. Fa1tor# that h$0 to "*0ro a11ura1y:

+he appraiser has observed and is familiar #ith behaviors to be appraised.

+he appraiser has documented behaviors calling for improvement.

+he appraiser has a checlist to obtain the revie# on &ob*related information.

+he appraiser is a#are of personal biases and is #illing to tae action to

minimize their effects.

Rating scores by appraisers of one group or organization are summarized

and compared #ith those by other appraisers.

+he appraiser focuses attention on performance related behaviors over #hich

he has better control than on other aspects of evaluation.

Higher levels of management are held accountable for revie#ing all ratings.

b. Fa1tor# that *ay $owr a11ura1y:

+he appraiser rates only #hen administrative actions are contemplated.

+he appraiser is unable to express herself'himself honestly and

unambiguously.

%ppraisal systems, processes and instruments fail to support the appraiser

+he appraiser is una#are of causes of rating errors.

+he appraiser has to rate employees on factors that are poorly defined.

. T1h!"u#*thod# o7 a00ra"#a$ to b u#d


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+here are different types of systems for measuring the excellence of an employee.

>ach type has its o#n advantages and disadvantages. +he earlier developed methods,

still being used, are +raditional 6ethods that are non*transparent in nature. 8hile

other ne#er methods are transparent in nature. >ach of the method has its o#n

format of appraisal form.

Th ar"ou# t1h!"u# a!d 0ro1### ha b! 80$a"!d "! th 7orth1o*"!'

1ha0tr.


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CHAPTER39

RE6IE OF LITERATURE

METHODS OF APPRAISAL

+R%5+-4%E 6>+H-51 - %R%1%E

erformance %ppraisal is an exercise of observation and &udgment, a feedbac process, and

an organizational intervention. t is a measurement process as #ell as an intensely

emotional process. %bove all, it is an inexact, human process. 8hile it is fairly easy to

prescribe ho# the process should #or, descriptions of ho# it actually #ors in practice are

rather discouraging.

1ome of the traditional methods of appraisal are explained belo#?

-. Ra!"!'

n this, the superior rans his'her subordinates in order of their merit, from best to

#orst.

* t is done in a competitive group.

* t is done by placing the appraisee on numerical scales i.e. =st, nd, 9rdetc. in the

total group.

* Raning of an appraisee on his &ob performance'traits against that of another

member.

9. Pr#o!3to3Pr#o!Pa"rd Co*0ar"#o!

Fnder this method the appraiser compares each employee #ith every other employee,

one at a time.

* 7ertain ey performance areas'traits are developed. >.g.? Eeadership, 7reativity,

nitiative etc.

* % scale for each factor is designed.

* % scale of people is also created for each factor.

* >ach %ppraisee is compared to every other person on the scale.


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* 7ertain scores for each factor are a#arded to the appraisee.

. Grad"!'

* 7ertain categories of traits'performance criteria, #hich are #orth of appraising,

are established. >.g. cooperativeness, self*expression, dependability, &ob

no#ledge etc.

* +he actual performance (/ey performance area) of an employee is then

compared to the predetermined grade definitions.

;. Co!7"d!t"a$ R0ort"!'

* t is the most traditional #ay of appraising employees performance. +he basic

assumption here is that since the superior is in direct contact he no#s his

subordinates better than any other and hence his appraisal #ould be more

appropriate.

* +he superior #rites a paragraph or so about his subordinates strengths,

#eanesses, intelligence, attitude to #or, attendance, conduct and character,

#or efficiency, etc.

/.Gra0h"1 S1a$#

* % printed form, one for each person to be rated is used.

* +he factors included in the form are >mployee characteristics such as leadership,

cooperativeness, enthusiasm, loyalty etc. or >mployee contribution #hich

includes 2uantity and 2uality of #or, specific goals achieved, regularity of

attendance, responsibility assumed etc.

* +he traits can be evaluated on continuous scale 3 the appraiser places a mar

along a continuum (range).

* +he best method to use is the multiple! type of scale #herein one has to tic

off! the box, #hich suits the description of an appraisees performance.

* 7ertain types of graphs are prepared based on these derived ratings.


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+he above methods are non*transparent in nature, as the appraisee or the employee is not

involved in the process of his appraisal. +he rating is done entirely by his superiors.

RELATI6EL) TRANSPARENT METHODS OF APPRAISAL

%s time has progressed, there have been advancements in the appraisal system. %s against

the earlier traditional methods, the ne#er methods include self*appraisal by the appraisee.

%fter having discussed the appraisal #ith the appraisee, the appraiser for#ards his

recommendation to the management for further decision on re#ard giving.

So* o7 th r$at"$y tra!#0ar!t *thod# ha b! dta"$d b$ow:

I. A00ra"#a$ D"#1u##"o! D"a$o'u Mthod o7 A00ra"#a$

=. %n appraiser and appraisee get together to engage in a dialogue about the

appraisees performance and development. t is lie a meeting in #hich vie#s

are exchanged so that an agreed conclusion can be reached. +he formal appraisal

meeting is referred as discussion because there is a free*flo#ing affair in #hich

both parties are fully involved.

. +he appraisal discussion provides the means through #hich the 7" ey

elements of erformance %ppraisal can be achieved. +hese are?

a. Measurement? t assesses results against agreed targets and standards.

b. *eed+ac(? t gives the appraisee information on ho# he or she has been

doing.

c. Positive reinforcement: t emphasizes #hat has been done so that it #ill be

done even better in the future. % constructive criticism is done i.e. points

that help in improving performance are given.

d. E$change of vie,s:t ensures that the discussion involves a full, free and

fran exchange of vie#s about #hat has been achieved, #hat needs to be


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done to achieve more, #hat appraisees thin about their #or, the #ay they

are guided and managed and their aspirations.

e. )greement: oth parties &ointly arrive at an understanding about #hat has

to be done in order to improve performance and overcome any #or

problems raised during the discussion.

. O0!"!' th D"#1u##"o!

5uring the discussion the appraiser should build up good trust level #ith the

appraisee and should tae follo#ing steps to open a discussion?

a. He should start by reminding the appraisee of the purpose of the discussion,

stressing that this is not to d#ell unduly on the past but to loo to the future.

b. +he appraisee should be made a#are of the time set aside for the discussion

to demonstrate that he is not going to rush through it.

c. 7ontinue by explaining that the aim is to come to an agreement on #hat hasbeen achieved since the last meeting and #hat is to be achieved in the future.

d. +his should be follo#ed by a brief exchange in #hich each party itemizes

the ey points they #ant to discuss 3 setting the agenda.

e. +he discussion can then begin, probably #ith an invitation from the

appraiser to the appraisee to tal generally about the progress he or she has

been maing during the year #ith reference to notes made prior to the

meeting or a completed preparation form.

;. G!ra$ Gu"d$"!#

+here are a number of general guidelines on ho# the appraisal discussion may

be conducted. >ach of them should be applied according to the circumstances

in #hich the discussion is taing place and the personalities of those involved 3

there is no one right #ay to conduct an appraisal discussion.


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a. Eet the appraisee do most of the taling.

b. >ncourage self*appraisal

c. /eep the #hole period under revie#

d. 4o surprises i.e. discuss issues at the time they tae place.

e. Recognize achievements and reinforce strengths

f. 7riticize constructively

g. %dopt a &oint problem*solving approach

h. %sing the right 2uestions

/. Thr ar 7our ba#"1 ty0# o7 u#t"o!#:

a. pen uestions? -pen 2uestions help to create an atmosphere of calm and

friendly in2uiry. t can be expressed 2uite informally, and can be put in a

Jtell me form. >.g.? Ho# do you thin things have been goingT

b. Pro+ing uestions? robing 2uestions as for specific information on #hat

has happened and #hy it has happened. +hey examine closely the steps that

need to be taen to put things right, do better in the future and avoid

repeating a mistae.

c. Closed uestions? 8hen there is a need to obtain or confirm specific factual

data, a closed 2uestion, #hich severely restricts the reply to supplying the

information, is ased. >.g. Ho# many times has this happenedT

d. Leading uestions? Eeading 2uestions are those #hich supply their o#n

Jright ans#er, e.g. 5o you agree that VV.T


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0ood listeners concentrate on the speaer. +hey respond 2uicly to points

made by the speaer, as 2uestions fre2uently to elucidate meaning, give the

speaer an opportunity to rephrase or underline a point, comment on the points

made by the speaer #ithout interrupting the flo# of conversation.

II. COMPETENC) &ASED APPRAISAL S)STEM

hat "# Co*0t!1y

7ompetency is an underlying characteristic of an individual, #hich is casually related

to effective or superior performance.

Co*0t!1 ba#d a00ra"#a$# 1a! b d7"!d a# a *thod o7 a00ra"#"!' 0o0$

who$$y or 0art$y by r7r!1 to th $$ o7 1o*0t!1 thy d*o!#trat "!

1arry"!' out th"r ro$#.

-ne of the problems surrounding the concept of competence or competency is that the

term is used to refer to the ability to perform a &ob or tas competently and also toho# people ought to behave in order to carry out a role #ith competence.

7ompetence should be used to refer to areas of #or in #hich the person is

competent.

7ompetency should be used to refer to the dimensions of behaviour lying behind

competent performance.

=. Co*0t!1 ba#d a00ra"#a$ *u#t d0!d o! #o* *thod o7 *a#ur"!'

1o*0t!1. +o do this, it is useful to distinguish bet#een the input, process and

output aspects of performance and ho# competence can be measured under each

heading.

a. %s an input, competence can be measured by the capacity #ithin people to

do their #or #ell. 7apacity refers to #hat people bring to their #or in the

form of no#ledge, sills and personal attributes.


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b. %s a process, competence can be measured in terms of the behaviour

re2uired of people in order to effectively convert inputs into outputs.

c. %s an output, competence is measured by the outcomes of the behaviour of

people in maing the best use of their no#ledge, sills and attributes.


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. A00ra"#a$# 1a! b r$atd to 1o*0t!1 "! two way#?

as apeople-+ased process#hich lins assessment to the level of competence

attained by individualsS or

as a o+-+ased process#hich uses competence headings #holly or partly to

evaluate &obs or roles.

oth levels of competence and levels of performance in achieving ob&ectives,

should be taen into, on the reasonable grounds that they should be assessed not

only for ho# people perform (competence inputs) but also for #hat they achieve

(outputs).

. POTENTIAL APPRAISAL

)ssessment Center Method

Fnder this method, many evaluators i.e. appraisers &oin together to &udge employee

performance in several situations by using variety of criteria +he most important

feature of this method is &ob*related simulations. +hese simulations involve

characteristics that managers feel are important for the &ob success. +he evaluators

observe and evaluate participants as they perform activities commonly found in these

higher*level &obs. t involves a paper*and*pencil test, intervie#s and exercises.

-. Fatur#:

+he use of situational exercise (such as in*baset exercise, business game, a

role*playing incident and leaderless group discussion)S

>valuators are dra#n from experienced managers #ith proven ability at

different levels of managementS

+hey evaluate all employees, both individually and collectively.


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% summary report is prepared by the members, and a feedbac on a face*to*

face basis is administered to all the candidates #ho as for it.

9. Pur0o#:

a. t is used to?

6easure potential for first level supervision, sales and upper

management positionsS and also for higher levels of management for

development purposes.

5etermine individual training and development needs of employees.

1elect freshers for entry*level positions.

rovide more accurate human resource planning information.

%ssist in implementing affirmative action goals.

b. t generally measures interpersonal sills and other aspects such as?

organizing and planningS interpersonal competence (getting along #ith

others), 2uality of thining, resistance to stress, orientation (motivation) to

#or, dependence on others and creativity. +he ability to organize, plan and

mae decisions, as in*baset simulations and scores obtained on paper and

pencil, psychological tests, are important to the overall assessment score.

+he duration of %ssessment 7enter rogram varies depending on the level of

appraisee. or example, centers designed for selection of first line supervisors,

sales personnel, and management trainees generally last for a day or lessS #hile

those used for higher*level managers may run for t#o or three days or longer if

used for developmental and not for selection purposes.

. Prob$*#:

+he ratings are generally influenced by the participants interpersonal sillsS

&udges tend to evaluate the 2uality of the individuals social sills rather than


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2uality of the decisions themselves. urther, the organizing and decision*

maing abilities are measured by in*baset exercises, verbal ability and

personal traits.

1olid performers in day*to*day operations suddenly choe in simulated

environment.

Fnreasonably high cost of assessing an individual in a particular &ob level.

+here are potential bad effects on those not selected to participate in the

exercise.

Fsually immediate supervisors nominate participants. >mployees #ho are

curious, independent, aggressive and intelligent may never be selected

because such traits, though important at higher levels, are not accepted by

lo#er level supervisors.

oorly rated appraisee may react in negative #ays and might get

demoralized.

+o mae %ssessment 7enter rogram successful, strong emphasis must be placed on

clear statement of goals, obtaining commitment of top management, &ob analysis,

appraiser training, program audit and evaluation.


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NE FRONTIERS TO PERFORMANCE APPRAISAL

n recent years the system of performance appraisal is becoming more and more transparent

#herein the employee, #ho is being appraised, is involved in the process. +he ob&ectives

or targets are set #ith mutual understanding bet#een the appraisee and his immediate

superior. +he feedbac regarding his performance is given to the appraisee #ith areas of

improvement by disclosing his strengths and #eaness and the opportunities available.

#ill tae you into details of these ne# frontiers to erformance %ppraisal viz?

I. Ma!a'*!t by Ob1t"# %M&O(

II. &a$a!1d S1or1ard

III.


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+hey should be challenging enough to motivate the employee. 7lear and

attainable goals help channel energies to#ards desired behaviour and let the

employee no# the basis on #hich he #ill be re#arded. %t this time, any

appropriate changes in the organization structure should be made? changes in

titles, duties, relationships, authority, responsibility, span of control and so

forth.

ii 1oint 0oal #etting:

+his step establishes short*term goals, #hich are performance oriented,

bet#een the management and the employee. +he responsibilities are

clarified to the employees through organizational charts and &ob description.

+he goals decided by the employee need to complement the goals of the

management. +hey also need to be flexible to accommodate ne# ideas

#ithout losing individual responsibilities. 6oreover they should be easily

2uantifiable.

iii Performance %evie,s:

+his step suggests fre2uent performance revie#s bet#een the manager and

the employees. 5uring the initial stages the meetings be held once a month

and later could be 2uarterly. or maximum benefit these meetings should be

scheduled for more than once a year.

i' #et chec( posts:

>stablishment of ma&or chec posts to measure progress. +his is merely to

chec that the employee surges to#ards his premeditated (planned) goal

#ithout any disruptions. +hese chec levels should be higher in the initial

stages and then gradually reduce. +his demands that the manager should be

on constant alert and exercise sound &udgment.

' *eed+ac(:

+he employees #ho receive fre2uent feedbac about their performance arehighly motivated than those #ho do not. Ho#ever, one has to ensure that


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the feedbac is relevant and specific. +his helps the employee and the

manager understand #here they stand.

+he five*sutra process of management by ob&ectives ensures that the manager

and the employee define and establish goals and ob&ectives for an employee to

be achieved #ithin a prescribed period of time. +he employee is to be

supervised and evaluated, periodically. +o this extent, a fre2uent feedbac and

superior*employee interaction model must be evolved.

&!7"t# o7 M&O Pro'ra*

a. Helps and increases employee motivationbecause it relates overall goals to

the individuals goalsS and help to increase an employees understanding of

#here the organization is and #here it is heading.

b. Managers are more li(ely to compete ,ithin themselves than ,ith other

managers. +his ind of evaluation can reduce internal conflicts that often

arise #hen managers compete #ith each other to obtain scarce resources.

c. %esults in a 2means-ends3 chain. 6anagement at succeeding lo#er levels

in the organization establishes targets, #hich are integrated #ith those at the

next higher level. +hus, it can help ensure that everyones activity is

ultimately aimed to#ard organizations goals.

d. %educes role conflict and am+iguity Role conflict exists #hen a person is

faced #ith conflicting demands from t#o or more supervisorsS and role

ambiguity exists #hen a person is uncertain as to ho# he #ill be evaluated,

or #hat he has to achieve. 1ince 6- aims at providing clear targets and

their order or priority, it reduces both these situations.

e. Provides more o+ective appraisal criteria. +he targets that emerge from

the W process provide a sound set of criteria for evaluating the managers

performance.


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f. *orces and aids in planning. y forcing top management to establish a

strategy and goals for the entire organization, and by re2uiring other

managers to set their targets and plan ho# to reach them.

g. Identifies pro+lems +etter and early. re2uent performance revie# sessions

mae this possible.

h. Identifies performance deficiencies. t enables the management and

employees to set individualized self*improvement goals and thus proves

effective in training and development of people.

i. Helps the individual manager to develop personal leadership" especially

the s(ills of listening" planning" counseling" motivating and evaluating.+his approach to managing instills a personal commitment to respond

positively the organizations ma&or concerns as #ell as to the development of

human assets. 1uch a manager has a far greater chance to move ahead #ithin

the management hierarchy.

II.mployees also vie# this performance information

from multiple perspectives as fair, accurate, credible, and motivating. >mployees are

often more strongly motivated to change their #or behaviours to attain the esteem of

their co#orers than to #in the respect of their supervisor alone.

!enefits to 4ey #ta(eholders


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+he 9:;< eedbac process offers extensive and diverse benefits to ey

staeholders in the organization 3 and the organization too?

a. Cu#to*r#: +he process gives customers a chance to strengthen the

customer*supplier relationship. +he 9:;< eedbac captures the relevant

and motivating information from internal and external customers #hile

giving them a voice in the assessment process.

b. E*0$oy#:y participating in a process that has tremendous impact on

their careers, employees may help select #hat evaluation criteria #ill be

used to &udge their performance and #ho #ill provide feedbac.

articipation plays a critical role for employees as they determine thefairness of the process.

c. Ta* **br#: +he only option for identifying team and individual

members effectiveness is 9:;< eedbac. ailing feedbac from multiple

sources, team members lac the information necessary for effective

individual development and team#or. 8ith no team evaluation,

accountability may evaporate, and performance may falter (#eaen).

d. Su0r"#or#: +his process expands supervisors insight regarding the

performance of each direct report by providing them more comprehensive

and detailed performance information than they usually have access to.

%lso, the process typically reduces by half, or more, the supervisors time

spent on evaluating individual employees.

e. Ladr# a!d Ma!a'r#:+he process provides leaders and managers an

opportunity to tap information from the organization that may other#ise

not be shared #ith them for fear of reprisal.

f. Or'a!"2at"o!#: -rganizations can gain access to credible, 2uantitative

information to understand organizational strengths and #eanesses,

leadership gaps, and training needs more fully. +his information is much

more useful than relying on intuitive &udgment or responding to those #ho

are maing the most noise.


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5iagram sho,ing the (ey sta(eholders in a 6789 *eed+ac( Process

+he flo# diagram attached as A!!8ur explains the 9:;X feedbac process


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&a$a!1d S1or1ard

=. alanced 1corecard (17) is a set of measures derived from an organizations

vision and strategy. t is a concept that helps translate strategy into action. t

re2uires an organization to balance its goals across multiple perspectives to

reduce the chance that one goal #ill dominate others to the detriment of the

organization. t leads to a realistic compromise that addresses short*term goals

and longer*term staying po#er.

. 17 lins performance measures by looing at a businessDs strategic vision

from four different perspectives? financial, customer, internal business

processes, and innovation C learning. +hese four perspectives of the 1corecard

provide a balance bet#een desired outcomes and drivers for those outcomes and

bet#een ob&ective and sub&ective performance measures. 17 is prescriptive

about a balanced range of measures and about ho# one perspective defines the

drivers for the next.

a. F"!a!1"a$ Pr#01t"

Th 7"!a!1"a$ 0r#01t" 0ro"d# a "w o7 how th #!"or 81ut"#@

th board o7 d"r1tor# a!d th #harho$dr# # th 1o*0a!y. +ypical

metrics in this perspective might be earning per share, revenue gro#th and

profit maximization. n the 17, 7"!a!1"a$ *a#ur#play a dual role? they

d7"! th 7"!a!1"a$ 0r7or*a!1 801td 7ro* th #trat'y a!d thy

#r a# th u$t"*at tar't# 7or th ob1t"# a!d *a#ur# o7 a$$ th

othr #1or1ard 0r#01t"#. +he financial measures are chosen based on

the business life cycle and also the strategic theme chosen for the financial

perspective. n addition to increasing returns, most organizations are

concerned #ith the ris of these returns. +herefore, #hen it is strategically

important, these organizations #ill #ant to incorporate explicit ris

management ob&ectives into their financial perspective.


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%s a conclusion, eventually all ob&ectives and measures in the other

scorecard perspectives should be lined to achieving one or more ob&ectives

in the financial perspective.

b. Cu#to*r Pr#01t"

+he customer perspective provides a vie# of ho# the customers see the

company. /aplan and 4orton contend that, G to put the balanced scorecard to

#or, companies should articulate goals for time, 2uality, and performance

and service and then translate these goals into specific measures.G -verall,

th"# "# a *a#ur o7 how th 1o*0a!y 0ro"d# a$u to th 1u#to*r .

7hanges made to a business process output that lo#ers the customers cost

or allo#s the customer to achieve his or her ob&ective, have value for the

customer. or example, its not enough to simply bring do#n the cost of an

item. +he delivery time and manner in #hich the customer is dealt during

times of sales and support are important as #ell. t is a measure of that value

that should be captured by the metrics (e.g. maret share, customer

satisfaction, customer loyalty, customer ac2uisition) representing this

perspective.

n this perspective, managers must first determine core measures that #ill

describe the successful outcomes of a #ell*formulated and implemented

strategy. +hey have to also identify #hat are the attributes that the

customers value and choose the value proposition that they #ant to deliver to

the targeted customers. +oday, many companies have a corporate mission

that focuses on the customer.

1. I!tr!a$ &u#"!## Pro1## Pr#01t"

+he internal business process perspective provides a vie# of #hat the

company must excel at to be competitive. /aplan and 4orton recommend

that, Gcompanies also attempt to identify and measure their companyDs core

competencies, the critical technologies needed to ensure continued maret

leadership.G


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n this perspective, the managers must identify the internal processes that are

crucial to their organization and develop the best possible measures #ith

#hich to trac the organizations progress. +hese processes should helpthem deliver superior value to their customers and achieve financial targets.

Th &a$a!1d S1or1ard 'o byo!d th #"*0$ a####*!t o7 8"#t"!'

0ro1###@ a!d u#ua$$y "d!t"7"# !w 0ro1### that th or'a!"2at"o!

#hou$d "*0$*!t "! ordr to b #u11##7u$. y incorporating innovation

processes measures, the alanced 1corecard provides managers #ith a set of

tools that does not only reflect the short term, but also gives insight about the

longer*term.

d. I!!oat"o! a!d Lar!"!' Pr#01t"

/aplan and 4orton underscore the importance of innovation and learning in

their statement that, Ga companyDs ability to innovate, improve, and learn ties

directly to the companyDs value.G 8hile the financial perspective deals #ith

the pro&ected value of the company, th "!!oat"o! a!d $ar!"!'0r#01t" #t# *a#ur# that h$0 th 1o*0a!y 1o*0t "! a 1ha!'"!'

bu#"!## !"ro!*!t. +his is of principal interest to the 7>- and the

architects of the long*range business plan. +heir focus for this innovation is

in the formation of ne# or the improvement of existing products and

processes. Th"# 0r#01t" $oo# at how 771t"$y th or'a!"2at"o! 1a!

rd#"'! a!d "*0$*!t !w bu#"!## 0ro1##@ "!trodu1 a!d 80$o"t

!w t1h!o$o'y a!d ada0t to 1ha!'"!' 1o!d"t"o!# "! '!ra$. +hus the

measures in this perspective are truly the enablers of the other three

perspectives. Th# *a#ur# ar $" th root# o7 a tr that w"$$

u$t"*at$y $ad throu'h th tru! o7 "!tr!a$ 0ro1## to th bra!1h# o7

1u#to*r r#u$t# a!d 7"!a$$y to th $a# o7 7"!a!1"a$ rtur!#. 6etrics of

this perspective can be adaptability, employee satisfaction, and #illingness

to share and gain no#ledge.

"th th 7"!a!1"a$@ 1u#to*r a!d "!tr!a$ 0r#01t"#@ *a!a'r# ar ab$


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to "d!t"7y th 'a0# btw! 8"#t"!' or'a!"2at"o!a$ r#our1# a!d th o!#

ru"rd to b #u11##7u$. Th o!$y way to 1$o# tho# 'a0# "# 7or th

or'a!"2at"o! to ud"1"a$$y "!#t "! *0$oy# a!d "!7or*at"o! t1h!o$o'y

a!d to d#"'! th *o#t a00ro0r"at or'a!"2at"o!a$ #tru1tur that 1ou$d

#u00ort th"r #trat'y. Th '"! b$ow d"a'ra* #how# th &a$a!1d

S1or1ard.


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Th #t0# o7 "*0$*!tat"o! ar:

Id!t"7y"!' a!d d7"!"!' By Pr7or*a!1 I!d"1ator# 7ro* th *u$t"0$

0r#01t"#:

irst the multiple perspectives are to be identified, #hich can be, as? inancial 6easure,

7ustomer 6easure, nternal rocess and eople (Eearning C 0ro#th). %fter this the

main tas is to identify the /ey erformance ndicators (/) in each of these multiple

perspective.

a. dentifying /ey %ction %reas

b. mplementation of /ey %ction %reas

c. 6onitoring /ey %ction %reas

;. Th ada!ta'# o7 th &a$a!1d S1or1ard:

a. irst, the measures incorporated in the alanced 1corecard are grounded in the

organizations strategic ob&ectives and competitive demands. +herefore, this set of

critical indicators helps the organization focus its efforts on the strategic vision.

b. +he four perspectives of the alanced 1corecard enable organizations to trac

financial results #hile simultaneously monitoring progress in building the

capabilities and ac2uiring the intangible assets they need for future gro#th. +he

alance 1corecard then becomes the cornerstone of the organizations current and

future success. %lso, by balancing external and internal measures, there is no trade*

off among ey success factors.

c. inally, managers can use the alanced 1corecard to?

Y clarify and gain consensus about the strategyS

Y communicate the strategy throughout the organizationS


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Y align departmental and personal goals to the strategyS

Y lin strategic ob&ectives to long*term targets and annual budgetsS

Y identify and align strategic initiativesS

Y perform periodic and systematic strategic revie#sS

Y obtain feedbac to learn about and improve strategy.

ELECTRONIC APPRAISAL S)STEM %APPRAISAL(

A00ra"#a$is a recently introduced method of performance appraisal that eliminates paper

#or. e%ppraisal simplifies and enhances the employee performance appraisal process. t

has features that mae its use easy and helps both HR administrators and line managers

produce better results more 2uicly. t provides an organization #ith a po#erful tool to help

develop organizations critical talent all year round. t is easier to conduct e%ppraisals by

automating the time*consuming process of administrating employee performance revie#s.

t is flexible and can be customized to suit an organizations needs. +he comprehensive

#orflo# maes it easy for human resource professionals to manage the process by

approving appraisal forms, monitoring the status and sending automatic email notifications

to managers. e%ppraisal templates and robust content options, help appraisees to create

appraisals 2uicly and professionally.

I. Fatur#:

intranet*based

>ase of use

1ophisticated #orflo#

7entralized repository

Fser customizable performance appraisal forms

%utomated email notification and reminder notice

7omprehensive status and action vie# for HR manager


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7ompetency*based text ans#ers and'or range scale

1elf*rating capabilities

7ontinuous performance &ournal entries throughout the year

mport employee data from the HR1 system of the organization

1coring and #eighting capabilities

II. &!7"t#:

%ppraisals are processed more 2uicly and efficiently.

%ppraisal data is received by concerned superior'manager in virtual real*time #hen

the appraisal is uploaded into e%ppraisal system.

t can be attached to the e*+arget 1etting #herein it imports data of e*+arget 1etting

and the #eightage and scoring is done based on the e*+argets decided mutually by

the appraisee and his manager.

%ppraisals cannot be misplaced or lost, as is possible #ith hardcopies. %ppraisals

can be stored electronically and available online.


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CHAPTER3

RESEARCH METHODOLOG)

Ob1t"# o7 th #tudy

To 1arry out th #tudy o7 Sahara Grou0@ I 7ra*d th 7o$$ow"!' ob1t"#

=. +o identify the techni2ue of erformance %ppraisal follo#ed in 1ahara 0roup.

. +o assess employee attitude to#ards the present appraisal system in 1ahara 0roup.

9. +o provide suggestions C recommendations from the study conducted at 1ahara 0roup.

6aret Research 5esign ? 5escriptive type

5ata 1ources ? rimary C 1econdary 1ource

Research %pproach ? 1urvey method

Research nstrument ? Buestionnaire and intervie#s

+ypes of Buestions ? -pen ended, closed ended, 67Bs,

5ichotomous

1ample 1ize ? =;; samples

1tatistical tools used ? 6ean, median


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DATA COLLECTION:

5ata #ources:

%"( S1o!dary Data

* through nternet

* &ournals

%""( Pr"*ary Data

* through Buestionnaire

* 7ontact 6ethod

* ersonal nteraction

DATA PRESENTATION AND ANAL)SIS:

=. ar graphs

. ie 5iagrams

9. 5oughnuts


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CHAPTER3;

DATA ANAL)SIS

E*0$oy# O0"!"o! a# to th Pur0o# o7 Pr7or*a!1 A00ra"#a$

Pr7or*a!1 #ta!dard# yard#t"1#

84%

16%

Yes

No

16%

20%

18%15%

16%

15%

C ompensation Decision Promotion Decision

Training & Development Programs Fee!ac"

Personal Dev elopment #rgani$ational ro t'


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Awar!## o7 t1h!"u o7 Pr7or*a!1 A00ra"#a$ b"!' 7o$$owd at Sahara Grou0

a*o!' E*0$oy#

Nu*br o7 E*0$oy# b"!' a00ra"#d dur"!' th"r #r"1 0r"od

(2%

28%

Yes

No

68%

)2%

Yes

No


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E*0$oy# o0"!"o! a# to th 0r#!t a00ra"#a$ #y#t*

E*0$oy 0r10t"o! a# to th 7ru!1y o7 a00ra"#a$

2%24%

44%

)0%

F*ll+ satis,ie -atis,ie Can.t sa+ Dissatis,ie

2%

/2%

0% 6%

#nce *ring t'e -ervice perio

Contin*o*s

Never

Can.t -a+


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I7 1o!t"!uou# a00ra"#a$ what #hou$d b th 'a0 btw! two a00ra"#a$ 0r"od

How Pr7or*a!1 A00ra"#a$ a771t# th 0rodu1t""ty o7 th *0$oy#

38

12

0

12 10

2824

21

5

0

5101520

25303540

Productivity

+ ve

Feedback

- ve

Feedback

Neutral

Feedback

Motivated

Indifferent

e!otivate

d

ho #hou$d do th a00ra"#a$

20%

44%

)6%*arterl+

al, Yearl+

Yearl+


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24"

0"0"

8"

4"

48"

1#"

$u%erior

Peer

$ubordiante

$elf &%%rai'al

(on'ultant'

&ll of t)e above

$u%erior + Peer

.

Do# a00ra"#a$ h$0 "! 0o$"#h"!' #"$$# a!d 0r7or*a!1 ara

*4"

10"

1#" Yes

NoSomewhat

f the process of appraisal does not lead to the improvement of the sills and proficiency

of the employees, the very purpose of appraisal becomes illogical. n the survey

conducted it #as observed that nearly UK Z of the respondents agree that erformance%ppraisal does leads to polishing the sills of the employees. 4early =; Z of the

respondents vie# that it does not serve this purpose and around =: Z #ere not able to

respond as to #hether it serve any such purposes or not.

Do# 0r#o!a$ b"a# 1r0#3"! wh"$ a00ra"#"!' a! *0$oy


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82"

18"

Yes

No

n the process of appraising, both the parties are human being, that is, the one #ho is

being apprised and the other #ho is appraising. +hus, there bound to be sub&ectivity

involved, be it an ob&ective #ay of appraising.

+hus, #hen ased from among the sample size of I; respondents, as huge as P Z

respondent said that personal bias do creep in #hile appraising an individual.

Hence, it is inevitable to say that personal liings do not come in the process of

appraisal. t is the extent to #hich the appraiser manages it so that it does not

become very partial and bias.

I7 '"! a 1ha!1@ wou$d *0$oy# $" to r"w th 1urr!t a00ra"#a$

t1h!"u

*2"

4"

24"

Yes

No

Can't Say

A00ro0r"at *thod o7 1o!du1t"!' th 0r7or*a!1 a00ra"#a$


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Do# 0r7or*a!1 a00ra"#a$ $ad# to "d!t"7"1at"o! o7 h"dd! 0ot!t"a$

+#"

4"

Yes

No

12"0"

20"

58"

4" #"

,ankin- Met)od

Paired (o!%ari'on

(ritical Incident

M./

&''e''!ent (entre

3#0 e-ree


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CHAPTER3/

CONCLUSION AND SUGGESTION

CONCLUSION

+he appraisal process calls for investment of time and energy by respective people,

and hence involves cost as #hole. +he costs are incurred on preparing and designing

the appraisals, conducting revie#s, copying ' printing ' filling ' distributing the

appraisal forms, communicating the appraisal process, training the appraisers as #ell

as appraisees in the process, handling post appraisal grievances etc. Hence

management needs to decide ho# much time and money they #ant to allocate for this

purpose and should critically evaluate the entire process.

roper appraisal forms should be maintained.t should be noted that the appraisal

form for each &ob position should be different as each &ob has different no#ledge

and sill re2uirements. +here should not be a common appraisal form for every &ob

position in the organization. urther, the appraisal form should not lead to

duplication of any information. nstead, detailed appraisal of the employees #or

must be done 3 #hich must incorporates both the #or related as #ell as the other

personal attributes that are important for #or performance

>mployees feel that there is an element of bias in the appraisal process .1uch factors

demotivates them. % neutral panel of people should do the appraisal and to avoid

sub&ectivity to a mared extent, ob&ective methods should be employed having

2uantifiable data.

+here is a lot of gap bet#een t#o appraisal programs.+he time period forconducting the appraisal should be revised, so that the exercise becomes a

continuous phenomenon.

+here is lac of transparency in the organization about the performance appraisal

procedure. +ransparency into the system should be ensured through the discussion

about the employees performance #ith the employee concerned and trying to find

out the grey areas so that training can be implemented to improve on that.


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%s soon as a performance is declined or affected, openly discuss #ith the employee

to try to determine the cause of affecting the performance.%llo# self*evaluation.

5epending on the si/e and nature of +usiness" management should introduce a suita+le

appraisal system. The management should try to have a +alanced +lend of several

systems incorporating the +enefits ,hile avoiding the comple$ities of each method.

SUGGESTIONSSUGGESTIONS

-.-.+he traditional methods seem to be arbitrary in nature and should be avoided in todayDs

scenario #here employees are more empo#ered and their suggestions are sought in

management decisions. Hence the transparent systems should be given preference over the

non*transparent ones.

9.+he automated systems call for higher investment in terms of money though reduced

time and increased overall effectiveness.

.. +he management should communicate the importance and benefits of this process to all

the employees and to avoid the negative emotional feelings, #orrying depression, stress,

and anguish on part of those giving as #ell as receiving appraisals.

;.;. +ransparency into the system should be ensured through the discussion about the

employees performance #ith the employee concerned and trying to find out the grey areas

so that training can be implemented to improve on that.

/.+he &ob and role expected from the employees should be decided #ell in advance and

that too #ith the consensus #ith them.


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P.P. %llo# the employee to engage in self*evaluation

LIMITATIONS

%-(PAUCIT) OF TIME

+he busy schedule of the contact persons failed to provide enough time to me for

discussion.

%9(CONFIDENTIALIT)

+he company #ithheld a lot of information that they termed as confidential, so #as not

able do analyze the data.

%(PRO&LEMS IN COLLECTING DATA

%s #as not able to get enough data from 4%6%R, so collected the data from the

various reports published by 1ahara 0roup

%;(LACB OF SECONDAR) DATA

t had been a problem collecting secondary data on divisions lie HR and ublic relations

as there #ere no release in any publications or #as there a mention of it on company

#ebsite e.g. performance appraisal, improved performance.

(I) %lthough all attempts #ere made to mae this an ob&ective study, biases on the part of

respondents might have resulted in some sub&ectivity.

(:)+hough, no effort #as spared to mae the study most accurate and useful, the sample

1ize! selected for the same may not be the true representative of the 7ompany, resulting in

biased results.

(U)+his being the maiden experience of the researcher of conducting study such as this, the


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possibility of better results, using deeper statistical techni2ues in analyzing and interpreting

data may not be ruled out.

CHAPTER3

Performance Appraisal Sahara group

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