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The purpose of this study was to determine the factors which the employees
in the organization preferring for their appraisal and the employees satisfaction with
the existing appraisal system. The results of the current study can be used by
organizations to develop policies, practices, and strategies regarding their appraisal
system and can create greater efficiencies in meeting strategic business objectives.
Findings were made based on the data collected from 150 employees with the aid of
a questionnaire in which 5-point likert scale and rating scale were employed. Most of
the respondents rated both subjective and objective measures as preferable. It was
also found that some employees surveyed are dissatisfied with their present
organization appraisal methods and there are great chances that they may leave
their employer if they get better job opportunities from any better employer. The
employers must pay attention to this situation and design effective methods as
remedies at the earliest or else they may soon lose their efficient workforce.
CHAPTER 1
INTRODUCTION
These goals are interrelated because one of the principal ways that managers motivate
workers is by making decisions about how to distribute outcomes to match different
levels of performance.
Managers can use the information gained from performance appraisal for two main
purposes:
Methods of Appraisal
• Objective measures such as numerical counts are based on facts. They are
used primarily when results are the focus of Performance appraisal. The number
of televisions a factory worker assembles in a day, the dollar value of the sales a
salesperson makes in a week, the number of patients a physician treats in a day
and the return on capital, profit margin, and growth in income of a business are
all objective measures of performance.
• Subjective measures are based on individuals' perceptions, and can be used
for appraisals based on traits, behaviors, and results. Because subjective
measures are based on perceptions, they are vulnerable to many of the biases
and problems that can distort person perception. Because there is no alternative
to the use of subjective measures for many jobs, researchers and managers
have focused considerable attention on the best way to construct subjective
measures of performance.
• 360-degree appraisal - a worker's performance is evaluated by a variety of
people who are in a position to evaluate it. A 360-degree appraisal of a manager,
for example, may include evaluations made by peers, subordinates, superiors,
and clients or customers who are familiar with the manager's performance. The
manager would then receive feedback based on evaluations from each of these
sources. When 360- degree appraisals are used, managers have to be careful
that each evaluator is familiar with the performance of the individual he or she is
evaluating. While 360-degree appraisals can be used for many different kinds of
workers they are most commonly used for managers.
1.2 STATEMENT OF THE PROBLEM
The study includes the calculation of null hypothesis and alternative hypothesis
by comparing age group of the respondents and preference of the appraisal system.
• Introduction
• Concepts and review
• Research methodology
• Data analysis and interpretations
• Results and Discussions
CHAPTER 2
A formal and systematic process, by means of which the job relevant strength
and weakness of the employees are identified, observed, measured and developed.
In the best of worlds, employees would love their jobs, like their co-
workers, work hard for their emplo yees, get paid well for their work, have
ample chances for advancement, and flexible schedules so they could
attend to personal or famil y needs when necessary.
ARGUMENT:
CONCLUSION:
RESEARCH:
CONCLUSION:
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CHAPTER 3
METHODOLOGY
3.1 INTRODUCTION
The design for this study is descriptive research design. This design
was chosen as it describes accuratel y the characteristics of a particular
s ystem as well as the views held by individuals about the system. The
views and opinions of emplo yees about the system help to study the
suitability of the system as well as the constraints that might restrict its
effectiveness
S AMPLE SIZE
The data for this study has been collected through primary sources. Primary data
for this study was collected with the help of Questionnaires and evaluation feedback
forms. The extra information was collected through interviews with the employees at
various companies.
3.5 TOOLS OF THE STUDY
The tool used for collecting the data is through the questionnaire.
The main reason for selecting the questionnaire method for the stud y is:
• Respondents have adequate time to give well thought out answers.
• The time of the study was also a limiting factor.
• Five pointer scales were use through the Questionnaire.
Chi-Square Test
The Chi-Square test is one of the simplest and most widely used non-parametric
test in statistical work. It is practically useful in tests involving nominal data. It can be
used for higher scales. It makes no assumptions about the population being sampled. If
Chi-Square is zero it means that the observed and the expected frequencies completely
coincide, while the greater the value of Chi-Square is , the greater would be the
discrepancy between observed and the expected frequencies.
The formula for computing Chi-Square is
CHI-SQUARE = (O-E)2 / E
PERCENTAGE ANALYSIS:
Such questions are also called fixed alternative questions. This method is also
facilitators the respondent to answer in some other way on other alternative is provided
as a choice.
CHAPTER – 4
Table 1
Inference
From the above table it is inferred that out of 50 respondents 88% of them are
male and 12% of the respondents are female.
Figure 1
100
88
90
80
e 70
g 60
a
t
n 50
e
c
r 40
e
p 30
20 12
10
0
male female
sex
Table 2
Inference
The above table shows that 28% of the respondents are between the ages 24-28,
26% of the respondents are above 38, 18% of the respondents are 29-33 and 34-38
and only 10% of the respondents are between the ages
19-23.
Figure 2
Table 3
Inference
The above table 68% of the respondents are joined during 2001-07, 20% of the
respondents are joined during 91-2000, 10% of the respondents are joined during 81-90
and 2% of the respondents are joined during 71-80.
Figure 3
Table 4
Inference
The above table shows that 65% of the respondents prefer supervisors appraisal,
20% of the respondents prefer subordinates appraisal and remaining 10% of the
respondents prefer peers appraisal.
Figure 4
Table 5
No of Simple
Basis of respondent percentage
performance s
appraisal
Quality 18 12
Target 12 08
Both 120 80
The above table shows that 80% of the respondents prefer both the quality and
target for their basis of performance appraisal, 12% of the respondents prefer quality
alone and 8% of the respondents prefer target alone.
Figure 5
Table 6
Frequency No of Simple
of appraisal respondents percentage
Monthly 09 06
Half yearly 60 40
Annual 75 50
360 degree 06 04
From the above table shows that 50% of the respondents prefer annual
appraisal, 40% of the respondents prefer half yearly appraisal, 6% of the respondents
prefer monthly appraisal and 4% of the respondents prefer 360 degree appraisal.
Figure 6
Table 7
Performance No of Simple
appraisal respondent percentage
based on s
Personality 06 04
traits
Behaviour 09 06
Results 15 10
All the above 120 80
Source: Primary data
Inference
From the above table shows that 80% of the respondents prefer personality
traits, behaviour and results, 10% of the respondents prefer results alone, 6% of the
respondents prefer behaviour, 4% of the respondents prefer personality trait
Figure 7
Table 8
Types of No of Simple
appraisal respondent percentage
s
Subjective 18 12
Objective 18 12
Both 114 76
Source: Primary data
Inference
The above table shows that 76% of the respondents prefer both subjective and
objective factors, 12% of the respondents prefer subjective alone and 12% of the
respondents prefer objective alone.
Figure 8
Table 9
Based on No of Simple
gender, any respondent percentage
discrimination s
Yes 48 32
No 102 68
Inference
The above table shows that 68% of the respondents said that there is no gender
discrimination and the remaining 32% said there is gender discrimination.
Figure 9
Table 10
Inference
The above table that 48% of the respondents agree that they are having daily
contact, 22% of the respondents are having no comment, 20% of the respondents are
disagree with the daily contact, 3% of the respondents are strongly agree with the daily
contact and 2% of the respondents are strongly disagree with the daily contact.
Figure 10
Table 11
Table showing feedback given at the time of appraisal
Feedback No of Simple
given at the respondent percentage
time of s
appraisal
SA 21 14
A 84 56
NC 30 20
D 12 08
SD 03 02
Inference
The above table shows that 56% of the respondents are agree with the feedback
given at the time of appraisal, 20% of the respondents given no comment, 8% of the
respondents are disagree with the feedback, 14% of the respondents are strongly agree
with the feedback and 2% of the respondents are strongly disagree with the feedback
given at the time of appraisal.
Figure 11
Table 12
Appraisal No of Simple
evaluates respondent percentage
strength and s
weaknesses
SA 36 24
A 63 42
NC 36 24
D 09 06
SD 06 04
Inference
The above table shows that 42% of the respondents agree with evaluating their
strength and weaknesses, 24% of the respondents are strongly agree with their
evaluation, 24% of the respondents given no comment based on their evaluation,6% of
the respondents are disagree with the evaluation and 4% of the respondents are
strongly disagree with the evaluation of strength and weaknesses.
Figure 12
Table 13
Inference
The above table shows that 56% of the respondents are agree with evaluation of
skill gaps, 26% of the respondents given no comment, 10% of the respondents are
strongly agree with evaluation of skill gaps and 8% of the respondents are disagree with
the evaluation of the skill gaps.
Figure 13
Table 14
Organizatio No of Simple
n providing respondent percentage
effective s
training
SA 36 24
A 48 32
NC 54 36
D 09 06
SD 03 02
Source: Primary data
Inference
The above table shows that 36% of the respondents given no comment regarding
effective training, 32% of the respondents are agree with the effective training, 24% of
the respondents are strongly agree with the effective training, 6% of the respondents
are disagree with the effective training and 2% of the respondents are strongly disagree
with the effective training.
Figure 14
Table 15
Appraisal
helps in No of Simple
personal respondent percentage
growth s
SA 36 24
A 69 46
NC 39 26
D 06 04
SD 00 00
Inference
The table shows that 46% of the respondents are agree with their personal growth,
26% of the respondent’s given no comment, 24% of the respondents are strongly agree
with their personal growth and 4% of the respondents are disagree with their personal
growth.
Figure 15
Table 16
Inference
The table shows that 54% of the respondents are agree with the promotion aspects,
30% of the respondents are strongly agree, 10% of the respondents given no comment
and 6% of the respondents are disagree with the promotion aspects.
Figure 16
Table 17
Recommendation No of Simple
for job rotation respondents percentage
Yes 120 80
No 30 20
Inference
The above table shows that 80% of the respondents recommended for their job
rotation and 20% of the respondents are not recommended the job rotation for their
development.
Chart 17
Table 18
Recommendatio No of Simple
n respondent percentage
For job s
enlargement
Yes 135 90
No 15 10
Source: Primary data
Inference
The above table shows that 90% of the respondents recommended for their job
enlargement and 10% of the respondents are not recommended the job enlargement for
their development.
Figure 18
100 90
80
Table 19
60 recommendation
40 for job enlargement Table shows
ideas to
20 10 recommend
0 for their
yes no
development
Inference
The above table shows that 80% of the respondents recommended their ideas
for their development and 20% of the respondents are not recommended their ideas for
their development.
Figure 19
Table 20
Face to face
interaction with No of Simple
supervisor respondent percentage
s
Yes 105 70
No 45 30
Source: Primary data
Inference
The above table shows that 70% of the respondents are agreeing with face to
face interaction with the supervisor and 30% of the respondents are not agree with the
face to face interaction with the supervisors.
Figure 20
Table 21
Opportunities to No of Simple
improve performance respondent percentage
s
Yes 129 86
No 21 14
Inference
The above table shows that 86% of the respondents are agree with their
opportunities given by the organization and 14% of the respondents are not agree with
the opportunities given by the organization.
Figure 21
Table 22
No 45 30
Inference
The above table shows that 70% of the respondents are agree with the changes
in attitude and behaviour ant the remaining 30% of the respondents are disagree with
the changes in attitude/behaviour during appraisal period.
Figure 22
80 70
70
60
50 Appraisal
40 30 changes your
30 attitude
20
10
0
yes no
Table 23
No 30 20
Inference
The above table shows that 80% of the respondents are satisfied with CFR
ratings and the remaining 20% of the respondents are dissatisfied.
Figure 23
Table 24
No 33 22
Source: Primary data
Inference
The above table shows that 78% of the respondents are satisfied with the
increase of salary through performance ratings and the remaining 22% of the
respondents are dissatisfied.
Figure 24
Table 25
Yes 114 76
No 36 24
Inference
The above table shows that 76% of the respondents are happy with the present
appraisal system and 24% of the respondents are unhappy with the present appraisal
system.
Figure 25
4.2 HYPOTHESIS TESTING
Chi-square test to find out the comparison between Age group of the respondents
and the preference of performance appraisal types.
Null Hypothesis
Level of Significance
5% level of significance
Test Statistics
X2 = (Oi- Ei)2
Ei
Calculation
80.42
(3-1) for 5% level of significance is 15.507. Thus calculated value is greater than the
tabulated value. The null hypothesis is rejected and the alternative hypothesis i.e.,
There is relationship between Age group of the respondents and the preference of
performance appraisal types is accepted.
CHAPTER 5
• 80% of the respondents are satisfied with CFR ( critical factor ratings )
• 78% of the respondents are agreeing with increase in their salary through CFR
ratings.
• 76% of the respondents are happy with the present appraisal system.
• The chi-square analysis show that the comparison between the age of the
respondents and types of appraisal level calculated value of x2.
5.2 SUGGESTIONS
The organization should conduct the following programmes for their development
which are
• 3 Modelling software
• The appraiser should keep on contact with the employees and motivate
them for their growth and also to achieve the organizational goals.
• When an employee is newly joined in an organisation, he/she should be
given proper information about performance appraisal system and its
impact towards his/her job.
• VSP Rao – Human Resource Management, Anurag Jain for excel books, 2005
ninth edition.
• Website : www.spansystems.com
• Website : www.google.com
APPENDIX
4. Designation : ___________________
a) Peers
b) Subordinates
c) Superiors
a) Quality
b) Target
c) Both
a) Monthly
b) Half yearly
c) Annual
d) 360 degree
a) Personality traits
b) Behavior
c) Results
d) All the above
1 – Strongly agree
2 – Agree
3 – No comment
4 – Disagree
5 – Strongly disagree
1 2 3 4 5
12. During appraisal, the appraiser had daily contact with you.
15. The appraiser exactly evaluated the skill gaps within you.
21. Do you have any ideas to recommend for your development? Yes/No
If yes, Please specify___________________________.
22. At the time of appraisal documentation review, did you have face to Yes/No
face interaction with your appraiser?
24. Does the performance appraisal review actually change your Yes/No
attitude / behaviour?
25. Are you satisfied with the critical factor ratings? Yes/No
26. Based on the performance ratings, is there any increase in the salary? Yes/No
27. Are you happy with the present appraisal system? Yes/No