Internship report 2007eit043

MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM

Table of Contents
CHAPTER -1 ............................................................................................................... 4
INTRODUCTION ........................................................................................................ 4
1.1 INTRODUCTION OF THE COMPANY .................................................... 5
1.2 INTRODUCTION OF THE SUBJECT ....................................................... 5
1.3 OBJECTIVE OF THE STUDY ................................................................... 6
CHAPTER-2 ................................................................................................................ 7
LITERATURE REVIEW ............................................................................................. 7
2.1 COMPANY‟S CLIENTS AND PROJECTS ....................................................... 8
2.2 POSITION IN FURNITURE INDUSTRY ............................................................ 9
2.3 RAW MATERIAL AND MANUFACTURING PROCESS .............................. 10
2.4 FUTURE PROSPECTS OF THE COMPANY.................................................... 10
2.5 VARIOUS DEPARTMENTS IN PROFORM INTERIORS PVT. LTD............ 11
2.5.1. INVENTORY DEPARTMENT ................................................................. 11
2.5.2. CARPENTARY DEPARTMENT .............................................................. 12
2.5.3. UPHOLSTRY DEPARTMENT.................................................................. 13
2.5.4. MACHINE DEPARTMENT ..................................................................... 13
2.5.5. ASSEMBLY DEPARTMENT ................................................................... 15
2.5.6. POLISH DEPARTMENT .......................................................................... 16
2.5.7. DISPATCH DEPARTMENT.................................................................... 19
2.5.8. PRODUCTION, PLANNING AND CONTROL ..................................... 20
2.6 PERFORMANCE APPRAISAL SYSTEM ........................................................ 21
2.6.1 MEANING OF PERFORMANCE APPRAISAL .......................................... 21
2.6.2 ADVANTAGES OF PERFORMANCE APPRAISAL ................................. 21
2.6.3 METHODS OF APPRAISAL ....................................................................... 22
2.6.3.1 Graphic Rating Scale Method ................................................................. 22
2.6.3.2 Alternation Ranking Method .................................................................. 23
2.6.3.3 Paired Comparison Method .................................................................... 23
2.6.3.4 Forced Distribution Method .................................................................... 23
2.6.3.5 Critical Incident Method ......................................................................... 24
2.6.3.5 Behaviorally Anchored Rating Scale ...................................................... 24

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PRIYANKA JAIN 2007EIT043

2.6.3.6 Management by Objectives (MBO) ........................................................ 25
2.6.3.7 360 Degree Appraisal system ................................................................ 26
Peer to peer appraisal form ......................................................................... 29
Self Appraisal Form ..................................................................................... 30
Down To Top Employee Performance Evaluations ..................................... 30
Subordinate Appraisal Form ......................................................................... 31
2.7 EXISTING SYSTEM OF APPRAISAL USED IN ORGANIZATION ............. 33
CHAPTER- 3 ........................................................................................................................... 34
RESEARCH METHODOLOGY............................................................................................. 34
3.1.RESEARCH DESIGN ........................................................................................ 34
3.2. SAMPLING DESIGN ......................................................................................... 34
3.3. SOURCES OF DATA ......................................................................................... 34
3.4. DATA COLLECTION TOOLS .......................................................................... 34
3.5. METHODS OF DATA COLLECTION ............................................................. 34
3.6. ANALYSIS OF DATA ....................................................................................... 34
3.7. RESEARCH ........................................................................................................ 34
1.) Within the organization ..................................................................................... 36
2.) Outside the organization ................................................................................... 36
WITHIN THE ORGANIZATION .......................................................................... 37
DETAILED RESPONSES FROM VARIOUS DEPARTMENTS ........................ 38
CHAPTER -4 ........................................................................................................................... 53
FINDINGS ............................................................................................................................... 55
CHAPTER-5 ............................................................................................................................ 58
CONCLUSION ........................................................................................................................ 59
CHAPTER-6 ............................................................................................................................ 60
RECOMMENDATIONS ......................................................................................................... 60
RECOMMENDED SYSTEM .................................................................................... 61
CRITERIA AND RULES: ......................................................................................... 64
BEST EMPLOYEE OF THE MONTH SCHEME .................................................... 65
SUGGESTIONS ......................................................................................................... 66
CHAPTER – 7 ......................................................................................................................... 67
LIMITATIONS ........................................................................................................................ 67
CHAPTER -8………………………………………………………………………………...73
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BIBLIOGRAPHY .................................................................................................................... 70
CHAPTER -9………………………………………………………………………………...75

ANNEXURE

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CHAPTER -1
INTRODUCTION

1. INTRODUCTION OF THE
COMPANY
2. INTRODUCTION OF THE SUBJECT
3. OBJECTIVES OF THE STUDY

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1.1 INTRODUCTION OF THE COMPANY

Proform Interior‟s Pvt. Ltd is one of the leading companies in furniture manufacturing,
furniture trading and interior design in New Delhi, India, providing complete lifestyle
solutions to our repute clientele.

1.2 INTRODUCTION OF THE SUBJECT
The meaning of the word "appraisal" is "to fix a price or value for something". This is used in
finance in terms such as project appraisal or financial appraisal where a value is attached to a
project. Similarly performance appraisal is a process in which one values the employee
contribution and worth to the organization. Employees across the entire organization are
appraised of their performance. This could be done annually, twice a year, periodically,
depending upon the need of the organization. A performance appraisal is a formal review of
employee performance. At a performance appraisal, objectives or targets are agreed between
manager and employee. At each subsequent appraisal, current and past performance is
compared and targets are reviewed.
It is a prescribed system with a meeting arranged after a set period to review the targets set by
the previous appraisal. This may be six-monthly or annually, depending on your organization.
Nonetheless, the performance appraisal is not only a means to review performance standards
and specific targets.
The performance appraisal interview
At its simplest, the appraisal interview consists of three steps:
 setting targets or standards
 measuring performance
 planning the appropriate action
A performance appraisal begins with an interview between manager and employee, an
appraisal form is completed, and action is agreed. The action plan will specify targets to
improve job performance, and indicate what is the reward for improvement. This reward may
be a salary increase, job promotion, an opportunity to join a management development
scheme, or to enroll in a new training program.

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1.3 OBJECTIVE OF THE STUDY

The organization has a small HR department. It handles recruitment, leaves and appraisal
related issues. As told by our trainer that company uses 360 degree method of performance
appraisal. But as we conduct a survey, we came to know that it s not properly applied . he
performance of the workers is mainly evaluated by the head of their respective departments
i.e their superiors. Therefore, I decided to pick up this topic to
 Identify current job performance system
 Identify individual employee strengths and weaknesses
 Identify training and development needs
 Identify potential performance standards

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CHAPTER-2
LITERATURE REVIEW
1. CLIENTS AND PROJECTS.
2. POSITION IN THE INDUSTRY.
3. RAW MATERIAL AND MANUFACTURING PROCESS.
4. FUTURE PROSPECTS OF COMPANY.
5. VARIOUS DEPARTMENTS IN PROFORM INTERIORS.
1. INVENTORY DEPARTMENT
2. CARPENTARY DEPARTMENT
3. MACHINE DEPARTMENT
4. ASSEMBLY DEPARTMENT
5. POLISH DEPARTMENT
6. QUALITY CHECK
7. DISPATCH DEPARTMENT
8. ENGINEERING DEPARTMENT
9. PERSONNEL DEPARTMENT
10. ACCOUNTING DEPARTMENT

6. PERFORMANCE APPRAISAL SYSTEM.
6.1 MEANING

6.2 ADVANTAGES OF PERFORMANCE APPRAISAL SYSTEM

6.3 METHODS OF PERMANCE APPRAISAL SYSTEM

7. EXISTING SYSTEM OF PERFORMANCE APPRAISAL

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2.1 COMPANY’S CLIENTS AND PROJECTS
The company has established a technology oriented and highly mechanized manufacturing
unit for producing premium and quality furniture, headed by German Engineers. It has
created a niche in the market for its unmatched quality, design and finish and is successfully
running its two flagship stores under the brand name of “Proform” and “Proform World”.
Following are the Italian companies with whom Proform Interiors is associated:-
 Casamilano  Porada  Arketipo

 Missura Emme  Arketipo  Fiam

 Italia  Livit  Comprex

 Flos  Louis Poulsen

TABLE 3.1
The showrooms display contemporary & lifestyle furniture and kitchens manufactured in
India and Italy. The company is specialize in Wardrobes and Kitchens. Its emphasis lies in
Design. Intense dedication and passion goes in designing every space and every piece of
furniture to arrive at supreme quality levels. Having said so, it provide a unique design
service with the latest technology imported from Germany and Italy wherein it customize in
accordance to the client‟s needs and requirement, keeping the quality standards and
convenience in mind.

Corporate Offices: Hotels

 Bangur Calcutta  Oberoi Hotel, New Delhi

 Jindal Pipes  Imperial Hotel, New Delhi

 Jindal Saw Pipes  Trident Hilton, Mumbai

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 Saw pipes

List of Sample Apartments / Major Projects which completed

 Omaxe Baddi . NRI City, Gurgaon, Sonepat, Faridabad

 Unitech Gurgaon, New Delhi, Kolkatta

 Uppal Jasola, Chandigarh, Plumeria, Lucknow, CC Constructions

 BMW Office

 Hero Motors

TABLE 3.2

2.2 POSITION IN FURNITURE INDUSTRY
In India, furniture and most wood products are manufactured all in the unorganized sector.
Even today almost 95% of the production remains in the unorganized sector. In one of the
studies undertaken by the Exim Bank of India and published as an occasional paper in year
2000, it was estimated that the overall Indian wooden furniture market would be in the region
of 6000 to 6500 crores. The growth of furniture industry rides on the back of the growth in
the building industry. Foreign direct investment into the construction industry has been
allowed. The construction industry was growing at a rate of 8% in line with the growth in
GDP. The concept is that of buying readymade furniture. The same concept is gaining ground
in India, and the day is not very far when this type of sale shall take over the made to order
segment. The company‟s market segment is Elite and upper middle class only. It caters to
leading corporate offices which accounts for 15 to 20% of the total output. Workstations and

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modular concept of furniture made an entry and took the corporate segment by storm. It
manufactures furniture for 4 Star and 5 Star Hotels.

2.3 RAW MATERIAL AND MANUFACTURING PROCESS
The main Raw material is hardboard, Medium Density Fiberboard, Particle Board Wood etc.
All the raw material & Hardware is of International Quality and International Standards.
Hardware is from Hettich of Germany. Blum of Austria, Saliche of Italy. All the companies
have agents in India, and procuring the same is not a problem as they are available locally.
The advent of Particleboard and MDF (Medium Density Fiber) changed this scenario
completely. These new generation boards are engineered to give desired properties to the
finished boards. They are homogeneous and have equal strength in all directions along the
surface. Panel products have several advantages over solid wood. Panel products are factory
made in uniform standard sizes. They are homogeneous with predictable properties. Because
they are processed in a factory, panel products are available in a large quantity from a single
source. Most of the operations are already carried out in the factories, so no primary
processing necessary at the product manufacturing sites The factory is capable to
manufacture furniture for mass production as well as for furniture for specific and custom
requirement. The company is already manufacturing furniture from Panel wood materials and
therefore the next stage is to go in for mass production of the same. There are two Factories
located in Delhi and Gurgaon

2.4 FUTURE PROSPECTS OF THE COMPANY
Expansion Plan
Looking into the growth opportunity in the furniture industry and the past experience of the
company, the company has now embarked on getting some balancing equipments to
manufacture Panel furniture and to a certain extent supported by solid wood. The main plant
is being imported from Italy & Germany. By addition of these machines not only production
will increase but the quality shall also improve. Proform is ready to mark its presence
overseas. Looking at the current expansion and growth we have chosen Dubai as our first

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step, whereby we‟ve taken 4,400 square meters space in Dubai (on the Sheikh Zayed Road
3rd intersection.)

2.5 VARIOUS DEPARTMENTS IN PROFORM INTERIORS
PVT. LTD.

The organization is very large consisting of about 10 departments and most of them are
manufacturing or product development department. Each department has a head who is
responsible for completing the target assigned to that department.
The various departments in the organization are as follows

11. INVENTORY DEPARTMENT
12. CARPENTARY DEPARTMENT
13. MACHINE DEPARTMENT
14. ASSEMBLY DEPARTMENT
15. POLISH DEPARTMENT
16. QUALITY CHECK
17. DISPATCH DEPARTMENT
18. ENGINEERING DEPARTMENT
19. PERSONNEL DEPARTMENT
20. ACCOUNTING DEPARTMENT

Let’s have a brief introduction about each of these departments:
2.5.1. INVENTORY DEPARTMENT
This department is responsible for keeping a track of all the raw material needed for
manufacturing the products. All the raw material that is sent by the supplier is first delivered
to the inventory. As per the information provided to us by the H.O.D , Mr. Neeraj Diwedi, the
entry date and time of each supply is at first recorded manually in the Inventory register and
then updated in a computer record. The software that is used for it is known as Tally. About
4000 kinds of raw material are delivered. The important material consist of wood, foam,
pasting material, glasses. The commonly use wood consist of pine, steambeach, American

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teak, walnut etc..Foam is also of various types depending upon their density. Likewise,
variety of pasting material depend upon its usage that whether it has to be use for pasting
foam or the finishing material. But the variety of covering material available depends upon
the client requirement. As all the major suppliers of these have their branch in NCR so all the
raw material is available locally. The raw material is supplied to all the departments as per
their requirement duly written and signed by the respective H.O.D.

2.5.2. CARPENTARY DEPARTMENT
The department is located in the basement of the plant/factory. This department mainly
consists of 40 labour workers/carpenters including 6 staff members working under the
H.O.D. , Mr. RamjiLal. He has been working in the organization since 8years. This
department mainly consists of chopping the wood, framing the basic structure upon which the
entire furniture is constructed. Although some part of the task is accomplished manually by
hand but 8 machines are also available. The semi-finished goods prepared in this department
are send to upholstery and polish department.

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2.5.3. UPHOLSTRY DEPARTMENT
The department is responsible for providing the looks and style to the furniture. Its task
consist of working on the frames constructed by the carpentry department and building the
furniture using foam, covering material and other materials. The department consists of tailor,
weavers and other skilled workers working under the H.O.D Mr. Rajendra Prasad. There are
28 workers in the department consisting of 2 staff members. The finished goods prepared in
this department are send to dispatch department.

2.5.4. MACHINE DEPARTMENT
The department consists of about 12 machines. the department is responsible for tasks such
as making holes in wooden board, smoothening board laminating weiner on the board. The
H.O.D of this department is Mr. Noor Hasan.

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2.5.5. ASSEMBLY DEPARTMENT
After all the parts of the furniture are constructed they are assembled in this department. The
HOD of this department is Mr. Dinesh Singh. About 12 labour workers, work under his
supervision. The task of this department is done manually. No machine work is involved. The
previous and successive stages of this department are internal quality check and external
quality check respectively

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.

2.5.6. POLISH DEPARTMENT
This department is responsible for providing looks and shine to the product. Inputs of this
department are semi-finished goods from carpentry department. The H.O.D of this
department, Mr.Upendra provided us detailed description about the working of the
department. The base is constructed on which the white siller is applied. After this sanding is
done through machine. After which sanding is done through hands. The product then goes
into the coloring chamber in which it is coated with desired color. Then the colored wood
goes in the polishing chamber where it is double coated, base coat and top coat. The product
then goes for high gloss finishing in which sanding is done again after applying polyster
finishing. The strength varies depending upon the requirement. It may be 600, 800, 1200 05
1500. After that it is provided high glossy appearance with the help of glender. The final
product doesn‟t appear to be that of wood. Product also undergoes leafing for providing shiny
appearance in various colors. The final product then goes to internal quality check. If it
passes the quality check then it is send to assembly department.

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2.5.7. DISPATCH DEPARTMENT
This department is responsible for keeping the track of the finished goods. It keeps
records that which finished goods are to be supplied to which client. The HOD of this
department is Mr.Hansraj. Just 4-5 labour workers work under his supervision.

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2.5.8. PRODUCTION, PLANNING AND CONTROL
This department is responsible for assigning targets to different departments. He gathers
all the information regarding the losses and reports it to the Director of the company. He has
a record of the arrival and the due date of each order. Accordingly he assigned targets to
various departments.

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2.6 PERFORMANCE APPRAISAL SYSTEM
2.6.1 MEANING OF PERFORMANCE APPRAISAL

People differ in their abilities and their aptitudes. There is always some difference between
the quality and quantity of the same work on the same job being done by two different
people. Performance appraisals of Employees are necessary to understand each employee‟s
abilities, competencies and relative merit and worth for the organization. Performance
appraisal rates the employees in terms of their performance.

Performance appraisals are widely used in the society. The history of performance appraisal
can be dated back to the 20th century and then to the second world war when the merit rating
was used for the first time. An employer evaluating their employees is a very old concept.
Performance appraisals are an indispensable part of performance measurement.
The latest mantra being followed by organizations across the world being – "get paid
according to what you contribute" – the focus of the organizations is turning to performance
management and specifically to individual performance. Performance appraisal helps to rate
the performance of the employees and evaluate their contribution towards the organizational
goals. If the process of performance appraisals is formal and properly structured, it helps the
employees to clearly understand their roles and responsibilities and give direction to the
individual‟s performance. It helps to align the individual performances with the
organizational goals and also review their performance.
Performance appraisal takes into account the past performance of the employees and focuses
on the improvement of the future performance of the employees.

2.6.2 ADVANTAGES OF PERFORMANCE APPRAISAL

The increasing use of Performance management reflects several things. It reflects, first,
the popularity of the Total Quality Management (TQM) concepts advocated several years
ago by management experts like W. Edwards Deming. Basically, Deming argued that an
employee‟s performance is more a function of things like training, communication, tools,
and supervision than of his or her own motivation.
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Performance Management emphasis on the integrated nature of goal setting, appraisal,
and development reflects this assumption. Second, it reflects the fact that a vast array of
studies that traditional performance appraisal are often not just useless but
counterproductive. Third, Performance management as a process also explicitly
recognizes that in today‟s globally competitive industrial environment, every employee‟s
efforts must focus like a laser on helping the company to achieve its strategic goals. In
that regard adopting an integrated; performance management approach to guiding,
developing, and appraising employees also aids the employer‟s continuous improvement
efforts. Continuous improvement refers to a management philosophy that requires
employers to continuously set and relentlessly meet ever-higher quality, cost, delivery,
and availability goals.
There are many advantages of performance appraisal within an organization :
1. To effect promotion based on competence and performance.
2. To confirm the services of probationary employees upon their completing the
probationary period satisfactorily.
3. To assess the training and development needs of employees.
4. To decide upon a pay rise where (as in the unorganized sector) regular pay scales
have not been fixed.
5. To let the employees know where they stand insofar as their performance is
concerned and to assist them with constructive criticism and guidance for the
purpose of their development.
6. To improve communication. Performance appraisal provides a format for dialogue
between the superior and the subordinate, and improves understanding of personal
goals and concerns. This can also have the effect of increasing the trust between
the rater and the ratee.

2.6.3 METHODS OF APPRAISAL

2.6.3.1 Graphic Rating Scale Method
The Graphic Rating Scale is the simplest and still most popular technique for appraising
performance. A Graphic Rating Scale lists traits (such as quality and reasonability) and a
range of performance values (from unsatisfactory to outstanding) for each trait. The

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supervisor rates each subordinate by circling or checking the source that best describes
his or her performance for each trait. The assigned values for the traits are then totaled.

2.6.3.2 Alternation Ranking Method

Ranking employees for the best to worst on a trait or traits is another option. Since, it is
usually easier to distinguish between the worst and best employees, and Alternation Ranking
Method is most popular. First, list all subordinate to be rated, a then close out the
names of any not known well enough to rank. Then, on a form the employees who is
highest on the characteristics being measured and also the one who is the lowest. Then
choose the next highest and the next lowest, alternating between highest and lowest until
all employees have been ranked.

2.6.3.3 Paired Comparison Method

The Paired Comparison Method helps make the Ranking Method precise. For every trait
(quantity of work, quality of work, and so on), you pair and compare every subordinate
with every other subordinate.
Suppose you have five employees to rate. In the Paired Comparison Method, you make a
chart, of all possible pairs of employees for each trait. Then, for each trait, indicate (with
a+ or a-) who is the best employee of the pair. Next, add up the no. of +s for each
employee.

2.6.3.4 Forced Distribution Method

The Forced Distribution Method is similar to grading on a curve. With this method, you
place predetermined percentage of ratees into performance categories.
For example, you may decide to distribute employees as follows.
15% High Performers
20% High-Average Performers
30% Average Performers
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20% Low-Average Performers
15% Low Performers

2.6.3.5 Critical Incident Method
With the Critical Incident Method, the supervisor keeps a log of positive and negative
examples (Critical Incidents) of a subordinate‟s work-related behavior. Every six months
or so, supervisor and subordinate meet to discuss the latter‟s performance, using the incidents
as example.
This method has several advantages. It provide actual example of good and poor
performance the supervisor can use to explain the person‟s rating. It ensures that the
manager or the supervisor think about the subordinate‟s appraisal all during the year. The
rating does not just reflect the employee‟s most recent performance. The list hopefully
provides examples of what specifically the subordinate can do to eliminate any
deficiencies. However, without some numerical rating, this method is not too useful for
comparing employees or making salary decisions.
It‟s useful to accumulate incidents that are tied to employee‟s goals.

2.6.3.5 Behaviorally Anchored Rating Scale

A Behaviorally Anchored Rating Scale (BARS) combines the benefits of narratives,
Critical Incidents, and quantified (Graphic Rating Type) scales by anchoring a rating scale
with specific behavioral examples of good or poor performance. Its proponents say it
provides better, more equitable appraisals than do the other tools to we discussed.
Developing BARS typically requires five steps:
1. Generate Critical Incident. Ask person who know the job (jobholders, and/or
supervisor) to describe specific illustration (critical incidence) of effective and
ineffective performance
2. Develop Performance Dimensions. Have these people cluster the incidents into a
smaller set of (5 or 10) performance dimensions, and define each dimension, such as
“salesmanship skill”.
3. Reallocate Incidents. Another group of people who also know the job then reallocate
the original critical incidents. They get the cluster definition and the critical incidents,

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and must reassign each incident to the cluster they think it fits best. Retain a critical
incident if some percentage (usually 50% to 80%) of this second group assigns it to
the same cluster as did the first group.
4. Scale The Incidents. This second group then rates the behavior described by the
incidents as to how effectively or ineffectively it represents performance on the
dimension (7- to 9- points scales are typical).
5. Develop A Final Instrument. Choose about six or seven of the incidents as the
dimension‟s behavioral anchors.

2.6.3.6 Management by Objectives (MBO)

Stripped to its basics, Management by Objectives requires the manager to set specific
measurable goals with each employee and then periodically discuss the latter‟s progress
towards these goals. You could engage in a modest and informal MBO program with
subordinates by jointly setting goals and periodically providing feedback. However, the
term MBO generally refers to a comprehensive and formal organization wide goal setting
and appraisal program consisting of six steps:
1. Set the organization’s goals: Establish, based upon the firm‟s strategic plan, and
organization wide plan for next year and set specific company goals.
2. Set developmental goals: Next department heads take these company goals (like
“boost 2004 profits by 20 %”) and, with there superiors, jointly set goals for their
developments.
3. Discuss departmental goals: Department heads discuss the department‟s goals with
all subordinates, often at a department wide meeting. They ask employees to set their
own preliminary individual goals; in other words, how can each employee contribute
to the department‟s goals?
4. Define expected result (set individual goals): Department heads and their
subordinates set short-term individual performance targets.
5. Performance reviews: Department heads compare each employee‟s actual and
targeted performance.

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6. Provide feedback: Department heads and employees discuss and evaluate the later
progress.

2.6.3.7 360 Degree Appraisal system

Traditionally, performance appraisal was just limited to two main persons involved in the
feedback process - namely the supervisor and the employee. The top-down approach,
the usual performance appraisal jamboree in corporate, is conducted where the supervisor
and the employee discuss one-to-one on broad swath of issues pertaining to the latter's
Performance out comes. This traditional approach, involving supervisor and employee, is
riddled with the problems of subjectivity, bias and halo effect. The traditional top-down
approach predicated on single source of feedback (i.e. supervisor) suffers on
account of limited knowledge and inaccurate view of the not-so-competent supervisor.
Many a time, supervisors also try to avert being on collision course with the sub-ordinates
and may obscure the picture by giving inputs that may be entirely untrue. Since
supervisors are far removed from the flow of work, they may find it tough to give feed
back hinged on actual observation. Even if the supervisor intends to give a positive
criticism he may still hold himself in the tracks for want of actual incident to buttress his
opinion. Half the time an individual does no get a real picture and gain an actual glimpse into
the kind of person one is. An employee's ability to identify core strengths and quelling
weaknesses gets irredeemably impaired. The information asymmetry about our
competencies, skills and performance related outcomes strait jackets the development,
stultifies the growth and limits the perspectives. The question that begs an answer is: is
there a way forward? Is there a feed back approach where the inputs about an individual‟s
performance can be sourced from multiple – levels? Will it be possible for the individual
to get feed back about his/her managerial and behavioral dimension from multiple
sources? The answer to all these questions are deafeningly loud and crystal clear - 360-
degree feedback holds the key. In today's competitive environment, gathering information
from all directions to assess one's standing has become an urgent imperative and
compelling necessity. In addition to this, the corporate culture is on the cusp of profound
evolution. There is an increased thrust on teamwork and delivering a world-class
Customer service. Employees development needs has become the byword among
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Businesses. In a highly commoditized job market, companies are using every thing at the
Command to attract and retain the best talent. Businesses are helping employees to
Replenish their skills to stay relevant in the evolving times. Companies are looking to
Ways and means to optimize and measure employees and company‟s performance. The
trajectory of these developments has shifted the focus from single – source feed back
system to multiple – source feedback system.
If 360-degree performance reviews are performed, a Human Resources manager should
coordinate the process, so that subordinate reviewers (i.e., employees) are assured that their
performance reviews are kept anonymous.

SUPERIOR

90 90
NAME OF
SELF PEER
APPRAISE

90 90

SUBORDINATE

FIGURE 2.2.1

The 360-degree appraisal significantly differs from the traditional supervisor-subordinate
performance evaluation. Rather than having a single person play judge, a 360-degree
appraisal acts more like a jury. The people who actually deal with the employee each day
create a pool of information and perspectives on which the supervisor may act. This group of
individuals is made up of both internal and external customers.
Using 360-degree appraisals provides a broader view of the employee's performance. The
most obvious benefit of the 360-degree appraisal is its ability to corral a range of customer
feedback. Because each customer offers a new, unique view, it produces a more complete
picture of an employee's performance. Unlike with supervisors, employees can't hide as
easily in 360-degree appraisals because peers know their behaviors best and insist on giving
more valid ratings. In addition to providing broader perspectives, the 360-degree appraisal
facilitates greater employee self-development. It enables an employee to compare his or her
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own perceptions with the perception of others on the employee's skills, styles, and
performance. There are different types of 360 degree feedback system :-

Peer-to-Peer Employee Performance Evaluations
Peer-to-peer employee performance evaluations require employees at the same level to
review each other. The thinking behind peer-to-peer employee performance evaluations is
that nobody knows a worker's ability better than his or her co-workers. While this can be an
effective review format for some groups of workers (for example, a team of doctors working
on a research project together, where specific content knowledge is required), it can also
cause controversy because of the way it affects future group dynamics. When evaluating the
use of these types of employee performance evaluations, consider the maturity level of the
employees involved and the long-term effects that could result from the source of negative
reviews getting back to the team members.

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Name of the Organization : Location:
Name of Appraise : Designation: Age:
Previous Appraisal Date: Time in present position: Date of joining:
Appraisal Date & Time: Appraisal Venue: Appraiser:
PEER TO PEER APPRAISAL FORM

Please rate your colleague on the following parameters

Rating can be done on 3 basis i.e.

1) Write down “E” if he/she “Exceeds” the quality

2) Write down “A” if he/she is “Acceptable”

3) Write down “N I” if he/she “Needs Improvement”

Self-Assessment Performance Reviews
Self-Assessment performance reviews are effective when combined with any of the other
three types of performance reviews. With this type of review, employees are asked to rate
themselves, often using the same form that a manager will use to review them. Self-

assessment performance reviews help make the employees an active part of the process and
provide a vehicle for them to reflect on their own performance prior to the formal review.
Studies have shown that employees are usually harder on themselves in self-assessment
performance reviews, than their managers and generally give themselves lower ratings.
29

0Having employees do self assessment performance reviews prior to a manager's review can
set a positive tone for the meeting, as the manager will often have better things to say than the
employee has said about him or herself.

Self Appraisal Form

Name: Designation: Age:
Appraisal Date & Time: Appraisal Venue:

Rate each question below on the scale of 1-5, according to how true it is of you.

1 2 3 4
5
Virtually never Virtually
always

Down To Top Employee Performance Evaluations

Down-Top employee performance evaluations tend to be one of the most common and most
effective method, because they involve the assessment of an employee by its subordinate.
Down to top employee performance evaluations are most useful when given by an
employee's immediate subordinate - someone who works with that employee everyday and
knows his or her strengths and weaknesses. The Down-Top employee performance
evaluation becomes less effective when given by a Human Resources manager who has only
second-hand knowledge of an employee's performance.
30

Subordinate Appraisal Form

Name of Appraise : Designation: Age:
Appraisal Date & Time: Appraisal Venue: Appraiser:

Please rate your senior on the following parameters.

Rating can be done on 5 basis i.e.

 Write down “N” for “Never”
 Write down “S E” for “Seldom”
 Write down “S O” for “Sometimes”
 Write down “U” for “Usually”
 Write down “A” for “Always”

Top-Down Employee Performance Evaluations
Top-down employee performance evaluations tend to be the most common and most
effective, because they involve the assessment of an employee by a direct manager. Top-
down employee performance evaluations are most useful when given by an employee's
immediate supervisor - someone who works with that employee everyday and knows his or
her strengths and weaknesses. The top-down employee performance evaluation becomes less
effective when given by a Human Resources manager who has only second-hand knowledge
of an employee's performance.
One offshoot of top-down employee performance evaluations are "matrix" employee
performance evaluations, where multiple managers rate the same employee. This is a good
choice when the employee works for multiple managers, or engages in various fixed-time
length projects

31


Superior Appraisal Form
Job Title ________________________________________
Employee Name ______________________________
Employee ID ___________________
Supervisor Name ___________________________
Title ____________________________
Department Name___________________________________________________________
Period Covered: from ___________ to __________
Evaluation Date ___________________
Purpose of review :_________________________
Other (Specify) _____________________

Please rate your Subordinate on the following parameters
Rate each question below on the scale of 1-5, by putting a “ .”

1 2 3 4 5
Best Needs improvement

Departments 1 2 3 4
5
Customer Service
Attendance/Punctuality
Ability to get along with Co-workers
Ability to get along with Colleagues on Campus
Time management
Planning, budgeting and forecasting
reporting and administration
communication skills

32

delegation skills
IT/equipment/machinery skills

meeting deadlines/commitments
creativity
problem-solving and decision-making
team-working and developing others
energy, determination and work-rate
steadiness under pressure
leadership and integrity
adaptability, flexibility, and mobility

2.7 EXISTING SYSTEM OF APPRAISAL USED IN
ORGANIZATION

The organization is currently using Top down performance scheme for rating and
performance appraisal. No schemes in particular, have been implemented so far, regarding
the performance improvement and performance measure of the employees. Although a
performance appraisal form is being filled for each employee by the head of their respective
department. Bonus and allowances are rewarded randomly to any worker as nominated by the
head of that department. Employees are also not aware of the criteria on which their
performance is evaluated by their superiors. Moreover there is no procedure of the
performance appraisal and rating of the top management officials. The head of various
departments could not also clarify their criteria of appraisal.
Therefore, I conclude that there is lot more that can be done regarding the rating and
appraisal of employees performance.
33


CHAPTER- 3
RESEARCH METHODOLOGY

1.RESEARCH DESIGN
2. SAMPLING DESIGN
3. SOURCES OF DATA
4. DATA COLLECTION TOOLS
5. METHODS OF DATA COLLECTION
6. ANALYSIS OF DATA
7. RESEARCH

34

3.1 RESEARCH DESIGN

The research have been done in an “EXPERIMENTAL WAY”. I have use objective means to
do the research work and the analysis is done using mathematical tools such as pie chart, bar
chart .

3.2 SAMPLING DESIGN

Sampling is done so as to include atleast one employee of each level within the organization.
Hence it can be called judgemental sampling.

3.3 SOURCES OF DATA
Both kinds of data is use for the research purpose PRIMARY as well as SECONDARY. The
details of both is as follows:

PRIMARY DATA :- Data observed or collected directly from first-hand experience.
Tailored to his specific needs, primary research provides the researcher with the most
accurate and up-to-date data.

I have gathered all the primary data through QUESTIONNAIRE , OBSERVATION ,
PERSONAL INTERVIEWS.

SECONDARY DATA :- Published data and the data collected in the past or other parties is
called secondary data. Researchers reuse and repurpose information as secondary data
because it is easier and less expensive to collect. However, it is seldom as useful and accurate
as primary data.

I got all the secondary data through COMPANY PROFILE AND RECORDS, INTERNET,
NEWSPAPERS, MAGAZINES

3.4 DATA COLLECTION TOOLS Survey ,questionnaire, personal
interviews.

The research instrument: Questionnaire.

The respondents: The Managers & Employees of various organizations.

The primary data was collected with the help of survey information. A concise questionnaire

was prepared keeping in mind the information specifications.

35

3.5 METHODS OF DATA COLLECTION
I have gathered all the primary data through QUESTIONNAIRE , OBSERVATION ,
PERSONAL INTERVIEWS. I got all the secondary data through COMPANY PROFILE
AND RECORDS, INTERNET, NEWSPAPERS, MAGAZINES

3.6 ANALYSIS OF DATA
Data hase been analysed by simple mathematical calculations and the findings have been
shown with the help of bar chart , pie chart.

3.7 RESEARCH
Research has been done in two different ways

1.) Within the organization

2.) Outside the organization

36

WITHIN THE ORGANIZATION

I asked few questions based on performance appraisal from the H.O.D „s of various
departments within the organization.
The responses to these questions are recorded in an excel sheet
ORGANIZATI
DEPARTMEN

ENVIRONME
WITHIN THE

CRITERION
EMPLOYEE

APPRAISAL
STRENGTH

WORKING

TRAINING
NAME OF

TENURE

NEED
ON

NT
T

INVENTORY 5 YR 3 staff
members ;4 Hot but
labour not Not
workers stressful punctuality required
CARPENTRY 8 YR 6 staff
members;40 Too Hot punctuality ,
labour Exhaust target Not
workers required completion required
UPHOLSTRY 4 YR Hot but
2 staff not knowledge of
members; stressful, required
28 fans skills, Not
employees required productivity required
MACHINE
ASSEMBLY 4 YR 12 Quite Productivity Not
comforta- of the worker required.
ble
POLISH 4 YR 68 Comfortab experience Not
employees le but lot required
of
exposure
to
chemicals
DISPAT CH 2 YR 4-5 labour Less work Punctuality Not
workers load and and required
comfortab regularity
le
environme
nt

37

QUALITY 2 YR 4-5 workers Comfortab Required Not
CHECK le skills required
HR 10 1 Comfortab Required Not
months le skills, required
regularity
PPC

DETAILED RESPONSES FROM VARIOUS DEPARTMENTS
Responses to the basic questions have been recorded in the excel sheet as shown above and
the subject responses are explained below.

INVENTORY DEPARTMENT
He provided me with the necessary information and working of the department
Q2.) What is your criteria for rating the workers in your department?
ANS: Punctuality
Q3.) Do you think that training for higher level can be provided to the employees as a
reward?
ANS: Yes, ofcourse we can provide but it the workers of this section do not need much
training
Q4.) What do you think can management do to increase the productivity of the employees?
ANS: The environment here is very suffocating. The workers get tired soon. So something
should be done for this.
Q5.) Can you allow a well educated worker but not with required technical skills to work in
your department initially as a trainee and then as an employee?
ANS: No we can’t because training an individual is a complete waste when there is ample
manpower available.
Q6.) Are you satisfied with the current appraisal system?
ANS: Yes up-to great extent. The management must have taken the right decision.
Q7.)Do you think that appraisal help you in deciding that which task is to be allotted to which
worker depending upon improvement and productivity increase since last appraisal?
ANS: Yes it Is very useful.
Q8.)Do you think that training need is being ignored in your organization?

38

ANS: We don’t feel the need of training so much.
Q9.)Do you provide information to the employees regarding the criteria of their appraisal ?
ANS: No , they are illiterate . All they can do is to criticize.

CARPENTRY DEPARTMENT

The supervisor provided me thorough information about his department. He allowed us to
have a explanatory tour of his department so that I can observe the working of the labor in his
department. About 40 labour workers work under his supervision which includes 6 staff
members. He told me that the accidents rates are very low because the management preferred
to hire skilled labour rather than freshers and trainees.
Q1.) When I asked him about the type of appraisal he suggest for a particular employee ?
ANS: He told me that he generally prefer bonus and salary hike as reward for any good
worker because most workers lie in low income group. Therefore for them, monitory benefits
are of great use.
ANS: technical skills , attendance, target completion
reward?
ANS: Yes, ofcourse we can provide but it the workers of this section do not need much
training
ANS: The environment here is very suffocating. The department is in basement and there are
no exhaust and fans here. So this requirement should be fulfill ASAP.
ANS: No we can’t
ANS: Yes up-to great extent. The management must have taken the right decision.
ANS: Yes it is very useful. It help me to decided that if a particular target comes then who
are the appropriate workers for it.
39

ANS: We don’t feel the need of training so much.
Q9.)Do you provide information to the employees regarding the criteria of their appraisal?
ANS: I think they have idea of their performance. This is the reason they never argue.

UPHOLSTRY

The detailed working of this department is explained earlier. The department has been
divided into sub-sections according to the tasks. These departments are namely stitching,
cutting, weaving, designing and finishing department. Each department has a main task man
along with a helper to accomplish the task. Some sub-departments may have more than one
pair of of main task-man and helper depending upon the complexity of the task.
Q1.) When I asked him about the type of appraisal he suggest for a particular employee?
ANS: He told me that he generally prefer bonus and salary hike and leave for a day.
ANS: technical skills , attendance
reward?
ANS: Yes, ofcourse because if trained and upgrade a low skilled worker to high highly
skilled level then we need not to look for high skilled man power which is difficult to be found
than low skilled ones. Moreover it allows the workers to adapt themselves to the training and
work with different roles.
ANS: The environment here is very suffocating. The department is in basement and there are
no exhaust and fans here. Safety gaurds should also be provided. So this requirement should
be fulfill ASAP.
ANS: No we can’t
ANS: Yes up-to great extent.
40

ANS: Not really.
ANS: yes.
ANS: Never felt the need of doing so.

ASSEMBLY DEPARTMENT

The department is responsible for assembling together the parts of the product manufactured
in various other departments. The HOD informed us that all the work in the department is
done manually. About 12 workers work under his supervision. The workers are divided into
three categories according to their skills. Feater , junior feater and helper.

ANS: We upgrade the post of the worker if his productivity increases.
ANS: In how much time he finishes the assigned task. Or how much work does he finish in
a day.
reward?
ANS: No
ANS: Nothing much
ANS: No we can’t
ANS: Yes up-to great extent.
ANS: Not really.
ANS: yes.
41


POLISH DEPARTMENT

The department has 4 chambers. The H.O.D , provided me with detailed information
regarding the working of his department which I have explained earlier. He also told me that
he has divided the workers in his department in different grades according to their working
experience and required skills. These categories are polisher, junior polisher, medium
polisher and senior polisher.

ANS: He told me that he generally preferred increment in the grade of the worker.
ANS: experience.
reward?
ANS: No, it’s a waste of time.
ANS: He cannot answer this question.
ANS: No we can’t
ANS: We can say that it is ok but not of the kind which can motivate workers to work
harder..
ANS: Yes, to a great extent.
ANS: Yes. Workers find hard to deal with some machines.

42

DISPATCH DEPARTMENT

The department is responsible for keeping the track of the order of the clients. Just 4-5 labour
workers work under his supervision.

ANS: He told me that he generally preferred salary hike.
ANS: regularity
reward?
ANS: No, it’s a waste of time.
ANS: He cannot answer this question.
ANS: No we can’t
ANS: We can say that it is ok but not of the kind which can motivate workers to work
harder..
ANS: Yes, to a great extent.
ANS:No

43

OUTSIDE THE ORGNIZATION
We conduct a general survey based on performance appraisal.

SAMPLE SIZE :25

QUESTION 1.) Main objective of using performance appraisal methods?
1. An insight into you strengths and weakness

2. Guideline for training plan

3. Assistance in goal

4. Decision on layoff

5. Determination of promotion or transfer

6. Salary administration and benefits

salary administration and benefits

determination of promotion or transfer

decision in layoff
Column2
Column1
assistance in goal
Series 1

guideline for training plan

an insight into your strengths and
weakness

0 2 4 6 8 10 12 14
7.

INTERPRETATION:

12 organization do performance review for an having an insight into their strengths and
weakness

44

10 organizations think that it helps in administrating salary
5 believe that it helps in determining promotion and transfer utmost.
3 companies believe that it helps in determining training needs.

Question 2.) How often do you use performance appraisal methods ?

1. Monthly

2. Quarterly

3. Half yearly

4. Annually

INTERPRETATION:

24 Organizations perform performance review on an ANNUAL basis.
2 Organization perform performance review on an QUATERLY basis.
3 Organizations perform performance review on an HALF-YEARLY basis.
45

1 Organizations perform performance review on an MONTHLY basis.

Question 3.) Awareness about responsibilities

INTERPRETATION :
Hence we see that majority of the employees are aware of their responsibilities, which
implies that the appraisers have efficiently communicated to the appraisees all the parameters
that will be taken into account during appraisal.
25 organization says YES
Rest says NO.

46


Question 4.) Satisfaction Level among appraise regarding Appraisal
System ?

1. Fully satisfied

2. Partially satisfied

3. Satisfied

4. Partially satisfied

5. Fully satisfied

INTERPRETATION:
From graph it can be seen that majority of the respondents 13 are satisfied with the appraisal
system. Only a meager 1 was dissatisfied with the PerformanceAppraisal programs.

47


Question 5.) Are you aware about the rating procedure?
1.) Yes 2.) No

INTERPRETATION:
This clearly shows that majority of the employees are not aware about the
performance ratings that are taken into account while conducting a performance
appraisal.

Question 6.) Do you think that Self Ratings should be allowed in the
organization?
1.) Yes 2.) No

48


INTERPRETATION:
From graph it can be seen that majority of respondents about 30 want self rating to be a
method of conducting the appraisals.

Question 7.) Have you been given a chance to rate you own performance?
1.)Yes 2.)No

INTERPRETATION:

From the graph we can see that majority of the respondents about 23 , are not given a chance
to rate their own performance in the organization.

Question 8.) Do you think Credibility of appraiser is important?
1.) Yes 2.) No

49


INTERPRETATION:
This shows that according to about 19 respondents the credibility of the appraiser

is extremely important and it has an effect on the overall Performance appraisal program.

Question 9. Do you think that there should be a complain channel for the
employees?]
1. Yes

2. NO

INTERPRETATION:
50

This shows that in majority if organizations i.e, about 22 , there is no proper complaint
channel existing in the organisations for

the employees who are dissatisfied with the performance appraisal system.

Question 10.) Have you been told about the Standardson which
performance is evaluated?

1.) YES 2.) NO

INTERPRETATION:
From this it can be seen that there is a clear majority among the respondents about 19 who
say that the standards on the basis of which the performance appraisal is carried out is not
communicated to the employees before hand.

Question 11.) Which Performance Appraisal sytm do you generally
prefer?
1. Immediate supervisor

2. Peer appraisal

3. Rating committee

4. Self rating

5. Appraisal by subordinates

51


INTERPRETATION :
Almost all, about 27 respond that the Performance Appraisals are carried our by the
Immediate Supervisor in these organisations. In very few organisations, Rating committees
carry out the performance appraisals. None of the organisations use Peer Appraisals,
Appraisals by subordinates and Self rating as a method of Performance Appraisal.

Question 12.) Do you have Clear Understanding of the appraisee’s job?
1.) Yes 2.)No

INERPRETATION:

52

21 respondents tell that the performance Appraisal programs are successful in giving a clear

understanding of the appraisee‟s job to both appraiser and appraisee.

Question 13.) What is your Performance appraisal criteria?
1. Quantitative outcome

2. Qualitative process

3. Quantitative process

INTERPRETATION :
From results we can see that Qualitative Process is considered as the most important

criteria for which the Performance appraisal programs are carried out, which shows

that companies consider Qualitiy of product & service and Customer satisfaction as

most important factors.

53


CHAPTER 4
FINDINGS

54

FINDINGS

 From the survey results its evident that both the appraisee‟s and appraisers
expectation from Performance appraisal system are the same i.e. “Determination
of Promotion or Transfer” and “Salary Administration and Benefits”. Hence a
single performance appraisal system can satisfy needs of both the Appraiser and
appraisee. Therefore the Performance appraisal program would be designed in
such a way that the appraiser would be able to analyse the contribution of the
employee to the orgaisation periodically and all the employees who have been
performing well would be rewarded suitably either by an increase in the salary or
a promotion. Through this the appraiser can also motivate the employees who felt
that they had no growth in the organisation and serves the purpose of employee
development.Thus performance appraisals can be used as a significant tool fo
career lanning.
 Analyzing ones own strengths and weaknesses is the best way of identifying the
potentials available, rather than the other person telling. Self-appraisal is a tool to
analyze oneself. One of the most important findings was that almost all the
employees wanted self-rating to be a part of performance appraisal program
carried out by the organisation. From the responses of the appraiser we can also
see that Self rating is not encouraged by the organisations. This could therefore be
an important factor which leads to dissatisfaction among the appraisees. At the
end of the year of the appraisal period the appraisal process should begin with
self-appraisal by every employee. To appraise ones own self on key performing
targets and qualities, the appraisee would go through a process of reflection and
review. It is an established fact that change is faster when it is self initiated. If
any employee has to improve or do better, he must first feel the need to do so.
Reflection and review is a process that enables him to feel the need and improve
more upon his strengths and weaknesses
 Another point to be noticed is that even in the other forms of Performance
Appraisal also the employees expect that they should be given a chance to rate
their own performance. This can allow the employee to analyze ones own
performance which gives new insights on how one is performing and what are the
critical points where he has to put his best and improve upon
55

 The existence of a proper complain channel was also of utmost importance to the
appraisees. They should be given a chance to convey their greviences to the top
management.

 The appraisees also expect that their comments and suggestions should be taken in
to account while conducting the appraisals. This expectation is not fulfilled as the
appraisers do not take their comments and suggestions into consideration.
Therefore they should look into this matter before it leads to dissatisfaction among
the employees.
 The results also indicate that the there is no communication of top management
plans and business goal to the appraisee. The appraisers on the other hand feel that
the goals and plans have been clearly communicated to the appraisees.
Communication is very essential for any system to function efficiently. Therefore
the appraisers should look into this matter and see to it that the goals and plans are
communicated effectively.
 The findings suggest that for success of Appraisal system the credibility of
appraiser is of utmost importance.
 As per the Appraiser, a poorly conducted appraisal system would lead to
demotivation and ineffective teamwok which will result in inefficient functioning
and low productivity in the organization. Therefore, if at all they feel there is
dissatisfaction among the appraisee‟s they should motivate them. Achievement,
recogntion, invelvement, job satisfaction and development can motivate the
employees to a large extent. Along with this satisfactory working conditions and
appropraite awards also play an important role.
 Also a majority of employees were satisfied with the current appraisal system
although they requested for some changes.
 Most of the employees were also not clear about the criteria on which ratings were
given to each employee while conducting the performance appraisal. Instead of
secrecy there should be openess. Because of lack of communication, employees
may not know how they are rated. The standards by which employees think they
are being judged are sometimes different from those their superiors actually use.
Proper communication of these ratings can help the employers achieve the level of
acceptability and commitment which is required from the employ.
56

 From the survey we can also derive that the appraisee‟s expect a post appraisal
interview to be conducted wherein they are given a proper feedback on their
performance and they can also put forward their complaints if any. The appraisal
should also be followed up with a session of counseling which is often neglected
in many organizations. Counseling involves helping an employee to identify his
strengths and weaknesses to contribute to his growth and development. Purpose is to help an
employee improve his performance level, maintain his morale, guide him to identify and
develop his strong points, overcome his weak points, develop new capabilities to handle more
responsibilities, identify his training needs.

57


CHAPTER-5
CONCLUSION

58


CONCLUSION

With the research performed and the analysis help us to conclude the following:-

1.) The organization has a simple appraisal system with many defects and weakness.

2.) The organization hired skilled labour; hence training requirements need not to be
evaluated through performance appraisal system.

3.) Salary and administration decision are very effectively taken with the help of
performance appraisal system.

59


CHAPTER-6

RECOMMENDATIONS

60


RECOMMENDED SYSTEM

At first I thought of applying 360 degree appraisal system. But through the survey and
research I had done here I realized some big hurdles in the ways. They are listed below:

1.) The workers are not well educated ,some of them are illiterate also. So we can‟t assigned
them the task to judge others.

2.) There is no one to judge the HOD of the departments other than the director himself

3.) Moreover there is no one to judge the director.

Therefore I tried to plan a performance management system with the existing top- down
approach but with few modification. These two plans are:-
1. Best worker of the month
2. Top 5 regular workers
Both the plans are implemented in each department of the organization. Both the schemes
were implemented by the management to involve employees (accord) for their active
participation toward the accomplishment of the organizations goals. It also helps to improve
department‟s quantitative productivity and client‟s response.
This scheme can be initiated by the management to measure the performance of the
departments and to create a healthy competitive environment. Objectives of this scheme are
as follows
Provide accurate feedback to the departments regarding their strengths as well as weakness
which can be use as an effective improvement tool.
Provide benchmark data which allow departments to establish where they placed in relation
to the best performance in the group.
It is a quantitative rating system in which maximum points are being allotted to every factor.
And the points obtained by the department are the obtained percentage of the points allotted
to each respective factor. Total of each factor is combined to the total marks obtained by each
department.

Factors which are considered in the “Total department performance rating system” are as
61

Follows:

FACTOR MAXIMUM POINTS ALLOTED
DELIVERY 20
QUALITY 30
ATTENDANCE 30
HOUSE-KEEPING 20
TOTAL POINTS 100

1.) DELIVERY RATINGS:
Maximum 20 points are being allotted to delivery ratings. Target for the delivery is known in
advance and the delivery ratings are based on the percentage of the target achieve.
For eg:-
Target is 110 dining tables (6 days working)
Actual completion 90
Total percentage achieve = ( 90/110) * 100 = 81.8%
Total delivery points = 81.8% out of 20 points = 15

2.) QUALITY RATINGS:
Maximum 30 points have been allotted to the quality ratings. This is based on defects and
rejects rate scores. Here three types of defects have been considered named as minor defect,
(i.e. ; low impact) major defect ( i.e. ; high impact) and critical defect. Reject rate score
means percentage of total defect that ouccurs and which are unavoidable defects.
Quality ratings (20 points) = defect score (10 points max) + reject score (10 points max).

3.) ATTENDANCE RATINGS:
Maximum 25 points are being allotted to attendance. Attendance ratings are based on
department‟s attendance from salary statement.

62


Points are calculated on the monthly basis according to the table given below:LEAVE
TAKEN IN A MONTH

LEAVES 1 DAY 1.5- 2 DAYS 2.5 – 3 DAYS >3 DAYS
TAKEN

POINTS NIL 10 20 40
DEDUCTED

For example :-

Departmental staff from salary statement = 37

Total achievable mandays in a week = (total staff * no of week days)

37 * 6 = 222

Total absenteenism = 10 man-days a week

Total achieved man-days = 222-10 = 212 man- days

Total percentage achieve = (212/222) * 100% =95%

Total attendance points = 95% of 25 = 23.75 points

4.) HOUSE-KEEPING RATE
Maximum 20 points are being allotted to house keeping rating. Housekeeping ratings are
decided by house group manager in consultation with general manager. Housekeeping rating
are based on :-

i. All the material keep in order

ii. Machines neat and clean

iii. Gang ways to be cleared

5.) PRODUCTIVITY RATINGS
For productivity ratings maximum 15 points are being allotted. Achievement of marks on
productivity is calculated on pro-data basis.

Total marks obtained = (delivery + attendance + house – keeping
63
Productivity)

The department obtaining maximum marks is awarded the “best department of the month”.

CRITERIA AND RULES:
i. The departments are assessed on 4 week basis.

ii. Departments should run at least 3 weeks out of 4.

iii. Delivery targets are set in the beginning by the head on the department.

iv. No rewards are given to the graded “D” and “E”.

v. This reward scheme is the sole discretion of the management and the management
decision is final.

THIS REWARD IS GIVEN IN THE VIEW OF:
i. To give recognition to an individual who contributes to the company‟s progress the
most

ii. To find and reward individual who can be the source of motivation for others.

64


BEST EMPLOYEE OF THE MONTH SCHEME

This reward is given in the view of :

 To give recognition to an individual who contributes to the company‟s progress or
not.

 To find and reward individual who can be a source of motivation to others.

The reward for the best employee of the month is :

 Monetary benefit of Rs. 500/-

 The photo of the employee is displayed with is brief service history and contributions

The individual performance incorporated the following :

Attendance 40 points

Participation 30 points

Skill 30 points

Total points 100 points

65


SUGGESTIONS
The proposed system is base on the achievement of the target and is easily achievable and
measurable.

The proposed department rating system should be introduced to assess and monitor
department‟s performance that meets management‟s expectations to provide feedback by
highlighting their strength and weakness to improve their performance.

The system also provides transparency in the performance appraisal system.

The system also motivates the workers to upgrade their performance level.

It also help the supervisors to take decisions regarding training needs.

66


CHAPTER – 7

LIMITATIONS

67


LIMITATIONS

As we know that everything has good as well as bad side, so is the case with this study. It
also has few limitations such as :-

1.) Is is unable to clearly determine the training needs.

2.) As most of the respondents were not adequately educated, therefore most of them were
not able to judge the existing system within the organization

68


CHAPTER 8
BIBLIOGRAPHY

69


BIBLIOGRAPHY

www.citehr.com

www.managementpradise.com

Personnel management by NK sahini

Company pofile of proform interiors pvt limited.

70


CHAPTER 9
ANNEXURE

71


SURVEY WITHIN THE ORGANIZATION

I asked few questions based on performance appraisal from the H.O.D „s of various
departments within the organization. The questions are as follows:

Q1.) Since how long you have been working in the organization?


a.) Punctuality b.) Technical skills c.) Seniority d.) Tenure within the organization e.)
Educational qualification f.) Attitude towards KRA

reward?






Q9.)Do you provide information to the employees regarding the criteria of their appraisal ?

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Internship report 2007eit043

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Internship report 2007eit043