This document provides an introduction and literature review for a study on employee performance appraisal in selected IT companies in Bangalore, India. The study aims to understand performance appraisal concepts and impacts, examine self-appraisals, identify training needs, and suggest best practices. A literature review found no prior research on this topic. The study will survey 100 employees using random sampling to assess performance appraisal strategies and opportunities in human resource management. Data will be collected through interviews, surveys, and secondary sources, then analyzed using percentages. Limitations include its academic scope and applicable scenario.

1. A Study on Employee Performance Appraisal with reference to selected IT
Companies in Bangalore City
Introduction:
Performance appraisal is not something new. The appraisal system existed in early centuries,
though the nature of appraisal was not so formal and the tools used were not so scientific. In fact
the appraisal gained momentum in the post second war period with the advent of
professionalization in management. At the early stages the performance appraisal was done just
on the basis of the degree to which a person possessed certain traits, which were considered
essential for effective performance of a particular task. Performance appraisal of individuals,
groups, and organizations in common practice of all societies.
Performance appraisal may be defined as a structured formal interaction between a subordinate
and supervisor that usually takes the form of a periodic interview, in which the work
performance of the subordinates is examined and discussed, with a view to identifying weakness
and strengths as well as opportunities for improvement and skills development. Appraising the
performance is method of evaluating the behavior of employees in the work spot, normally
including both the quantitative and qualitative aspects of job performance. Performance refers to
the degree of accomplishment of the tasks that makes up an individual’s job. Other measures are
based on behavior which means observable physical actions and movements, objectives which
measure job related results like amount of deposits mobilized and traits which measures in terms
of personal characteristics observable in employee’s job activities. The contents to be appraised
may vary with the purpose of appraisal and type and level of employee. These are different
methods designed and experimented in this regard.
Review of literature:
The researcher has visited Bangalore university library and the research center of college along
with the libraries of neighboring colleges. It is found that no one has carried out the research on
this topic hence this study I initiated.
1. Bedeian (1976) in his paper titled “Rater Characteristics Affecting the Validity of
Performance Appraisals” states that the task of developing effective performance

2. appraisal systems is one of the most preferred contemporary problems of personnel
administration. An abundance of literature is available detailing the problems and
difficulties inherent in subordinate appraisals. Numerous studies have made suggestions
for rating format and content changes. Some have even suggested the elimination of
appraisal. More recently, an identifiable body of knowledge which seriously casts doubt
on the use of supervisor’s judgment in evaluating employee performance has begun to
emerge. The purpose of this paper is to explore this emerging body of knowledge and to
examine its ramifications for performance appraisal.
2. Cummings (1973) in an article titled, “A Field Experimental Study of the Effects of Two
Performance Appraisal Systems”, reported the results of a field experiment designed to
test the effects of manipulating several elements of an operative level performance
appraisal system. First, the multi purposive nature of appraisal in formal organizations is
discussed. This is followed by a brief overview of the literature on performance appraisal.
The design and results of the study at hand are then discussed.
3. Patton (1973)2in his paper on “Does performance appraisal work?” states that
performance appraisal can be a powerful force for performance improvement at both the
individual and the corporate level, but few companies in the US and even fewer in
Europe have learned to tap its full potential. Examining the differences between
European and US performance appraisal practices, the author finds that some European
companies have more than caught up with their American counterparts. He offers
guidelines to overcome some difficulties prevalent on both sides of the Atlantic.
4. Randell (1973) in his paper titled ““Performance appraisal: purposes, practices and
conflicts”, discusses the collection of information from and about people at work. It
attempts to structure the field, define key problems, expose sources of conflict and point
the way to resolving major difficulties.
5. Taylor and Wilsted (1974) in their article titled “Capturing Judgment Policies: A Field
Study of Performance Appraisal” used mathematical models of judgment policy for
evaluating 625 performance reports during a single rating cycle. Linear and nonlinear
analyses are used to describe the cues most important in determining the overall ratings.
In addition, performance rating policy is compared with stated policy for each of the 40
raters.

3. Objectives of the study:
1. To understand the concept of performance appraisal in Human Resource Management.
2. To study the impact of performance appraisal on employees.
3. To study and understand the self appraisal made by the employees based on their
performance.
4. To study and identify employee training needs.
5. To suggest the best practices adopted by companies across the globe.
Need of the study:
The study is initiated to know the performance level of the employees in the development of the
organization in the field of HRM.
Scope of the study:
The study will be to conduct performance appraisal reviews in selected IT companies in
Bangalore City. This would be useful to restructure its performance appraisal strategies in the
field of HRM taking into account the changed scenario in the field of HRM.
Statement of the problem:
Performance Appraisal plays a very important role in HRM. The study is aimed at defining the
performance of the employees on HRM in the organization. The study will help to know the
performance of the employees and the opportunities provided to the employees in the
organization.
Sampling:
A sample of 100 respondents will be chosen for the purpose of the study. Convenient random
sampling will be used to collect the information regarding the research. The questionnaires will
be prepared and circulated to the respondents will be to pool the information.

4. Data Collection:
Primary data:
The primary data will be collected by personal interviews with officials, surveys, questionnaires
through observations and data analysis.
Secondary data:
The secondary data will be collected through the published reports, newspapers, company
websites, magazines, internet, text books, journals and articles.
Tools for Data collection:
Percentage will be used for analyzing, interpretation of data and it will be presented through by
using tables and graphs.
Period of the Study:
February to March 2019.
Operational Definitions:
Performance Appraisal:
It is defined as a systematic process, in which the personality and performance of an employee is
assessed by the supervisor or manager, against pre-defined standards such as knowledge of
abilities, attitude towards work, attendance, cooperation, judgment, versatility, health initiative
and so forth.
Human Resource management:
“HRM is the provision of leadership and direction of people in their working or employment
relationship”. In other words, “ It is the process of recruiting, selecting, including employees,
providing orientation, imparting training and development, appraising the performance of
employees, deciding compensation and providing benefits, motivating employees, maintaining

5. proper relations with employees and their trade unions, ensuring employees safety, welfare and
healthy measures in compliance with labor laws of the land”.
Limitation of the study:
 The study has conducted for the academic purpose only.
 The researcher has accepted the data given by the respondent at its face value.
 Due to the time limitation, in depth study could not be undertaken.
 It is applicable only for the current scenario.
 The research is limited to Bangalore city only.
Chapter Scheme:
Chapter :1 Introduction
Chapter :2 Research Design
Chapter :3 Respondents Profile
Chapter :4 Analysis and Interpretation
Chapter :5 Findings, Conclusions and Recommendations.
Bibliography
Annexure
Signature of the student Signature of the Guide
Date: