1 1.1 INTRODUCTION Performance appraisal is also known as employee appraisal.

It is a method by which the job performance of an employee is evaluated (generally in terms of quality). Performance appraisal is a part of career development. An employee appraisal performance is a process often combining both written and oral elements where by management evaluates and provides feedback on employee job performance, Including steps to improve or redirect activities as needed. Documenting performance provides a basis for pay increases and promotion. Appraisals are also important to help staff members improve their performance and as an avenue by which they can be rewarded or recognized for a job well done. In addition, they can serve a host of other functions, providing a launching point from which companies can clarify and shape responsibilities in accordance with business trends, clear lines of management-employee communication, and spur re-examinations of potentially hoary business practices. Yet joel myers notes in Memphis Business Journal that in many organization, performance appraisals only occur when management is building a case to terminate someone. It`s no wonder that the result is a mutual dread of the performance evaluation session something to be avoided, if at all possible. This is no way to manage and motivate people. Performance appraisal is supposed to be a developmental experience for the employee and a teaching moment for the manager. Performance appraisal is also known as employee appraisal. It is a method by which the job performance of an employee is evaluated (generally in terms of quality). Performance appraisal is a part of career development. Performance appraisal are regular reviews of employees performance with their organization, generally, the aims of a performance appraisal are to: Identify employee training needs. Document criteria used to allocate organization rewards. Form a basis for personnel decisions, salary increases, and promotions. disciplinary actions etc., Provide the opportunity for organization diagnosis and development. Facilitate communication between employee and administrators.

2 Validate selection techniques and HRP to meet federal equal employee opportunity requirements. Give feedback on performance to employees. A common approach to assessing performance is to use a numerical or scalar rating system whereby managers are asked to score an individual against a number of objectives and attributes. In some company employees receive assessments from their managers, peers, subordinates and customers while also performing a self assessment. This is known as 360 degree appraisal is forms good communication patterns. Performance appraisal offers competitive advantage to a firm by improving performance, helping make correct decisions, ensuring legal compliance, minimizing job dissatisfaction and employee turnover and ensuring consistency between organizational strategy and behaviour. The objectives of performance appraisal, listed above, point out the purposes such an exercise seeks to meet. Specifically, performance appraisal helps an organization gain competitive advantage edge in the following ways which contribute to firms competitive advantages. Improving performance: An effective appraisal system can contribute to competitive

advantage by improving employee hob performance in two ways by directing employee behaviour towards organizational goals, as was done by the second beekeeper, and by monitoring that behaviour to ensure that the goals are met. Making correct decisions: Appraisal is a critical input in making decisions on such issues as pay raise, promotion, transfer, training, discharges and completion of probationary periods. Right decision on each of these can contribute to competitive strength of a firm. If promotion, for example, is made on performance, the promote feels motivated to enhance his or her performance. Ensuring legal compliance: Promotions made on factors other than performance might land up a firm in a legal battle, thus diverting its focus on non productive areas, as it happened to Williamson magar companies can minimize costly performance related litigation by using appraisal systems that give fair and accurate ratings.

3 Minimising job dissatisfaction and turnover: Employees tend to become emotional and frustrated if they perceive that the ratings they get are unfair and inaccurate. Such employees find that the efforts they had put in became futile and obviously get demotivated. Dissatisfaction in the hob sets in and one of the outcomes of job dissatisfaction is increased turnover. Fair and accurate appraisal results in high motivation and increased hob satisfaction. An organization having satisfied and motivated employees will have an edge over its competitors. Appraising the performance of individuals, groups and organizations is a common practice of all society. While in some instances the appraisal processes are structured and formally sanctioned, in other instances they are an informal and integral part of daily activities. Thus, teachers evaluate the performance of students, bankers evaluate the performance of creditors, parents evaluate the behaviour of the children, and all of us, consciously or unconsciously evaluate our own actions from time to time Performance appraisal or Merit rating is one of the oldest and universal practices of management. This approach resulted in an appraisal system in which the employee's merits like initiative, dependability, personality etc were compared with others and ranked or rated. Appraisals! The times when employees look forward to a raise and a promotion and the bosses, may be, not quiet so. Most feel that for bosses, this is the time to remind you again for all the times you failed to deliver! On a more serious note, appraisals by and large mean reviewing your past performance (achievements) and providing you feedback for improvements. So, if there's been little or no performance, there'll be little or no appraisal in your salary and position. Appraisal cycles vary from organisation to organisation. Most have six-monthly or annual reviews. Some also follow the process of a project-end review along with the usual organisation review cycle of six months or a year. However, the important thing that some of us might discount is that appraisals are as much about your future performance as they are about your past performance.

4 1.2 INDUSTRY PROFILE 1.2.1 Steel Fabrication History : In 1909, George third (Geordie), emigrated from Aberdeen, Scotland to Brandon, Manitoba. According to legend, he found it a wee bit cold for a kilt, so six weeks later he got back on a train and rode it all the way west to balmy Vancouver a place where he could thaw this frozen haggis, and build what would become a family empire. It was a bright sunny day when Geordie finally stepped from the C.N.R. car and into a city that is still our family home ninety-seven incredible years later. The young scot strode across the dirt road to busy blacksmith shop at 1129 main street, and was hired... on the spot, to hammer and bend red hot west coast steel. In just one year the enterprising twenty-five year old and his new partner, William-owned the business. 1.2.2 STEEL INDUSTRY IN INDIA : India is the fifth largest producer of steel in the world. India steel industry has grown by leaps and bounds, especially in recent times with Indian firms buying steel companies overseas. The scope for steel industry is huge and industry estimates indicate that the industry will continue will to grow reasonablyin the coming years with huge demands for stainless steel in the construction of new airports and metro rail projects. The government is pl anning a massive enhancement of the steel production capacity of India with the modernization of the existing steel plants. The Indian steel industry has entered into a new development stage from 2005-06, with an average growth rate of 12percent per annum in steel output, for the last two years. 1.2.3 PRODUCTION : The rapid rise in production has resulted has resulted in India becoming the worlds 5 th largest producer of steel, up by two places, on the back of 50.71 million tons (MT) production of crude steel and 51.9 MT of finished steel. The production of finished steel grew by 16.52 percent, from 44054 MT in 2005-06 to 49.39 MT in 2006-07.

5 While the demand for steel will continue to grow in traditional sectors such as infrastructure, construction, housing automotive, steel tubes and pipes, consumer durables, packaging, and ground transportation, specialized steel will be increasingly used in hi-tech engineering industries such as power generation, petrochemicals, fertilizers, etc. In the first half of FY07 (April - September), production of finished carbon steel was estimated at 2408 MT against 23.25 MT in the same period of the previous year recording a growth rate of 6.6 percent. During this period, pig iron production recorded a growth of 7.9 percent, at 2058 MT. Presently, the government plans to increase production from the present 53 MT to 124 MT by 2011 and 200 MT by 202, so as to narrow the gap between supply and demand. However, access to coking coal will be the key to the success of this strategy According to a report by the world steel dynamics (WSD), a leading global steel information service, the Indian steel industry has entered a period of massive growth not only in steel demand but also in steel making capacities. 1.2.4 EXPERT : Along with growth in production, expert have increased by 6.26 percent in 2006-07 over 2005-06 to touch 4.5 MT from 2.42 percent in 2006. Yet, the Indian steel ministry has proposed an ad valorem expert duty on chrome ore (Union Budget 2008), fearing fast depletion due to phenomenal rise in experts. The government aims to first meet the needs of the domestic industry. 1.2.5 INVESTMENT : A host of steel companies have lined up major investment proposals. Furthermore, with 13 billion tons of iron ore deposits, 5th largest in the world, and an expanding consumer market, the Indian steel industry is likely to received huge domestic and foreign investment. Already, Arcelor, mittal and Posco have assured a combination investment of US$ 32 billion. Also, china largest investment in India more than US$ 1.999 billion over 5-10 years is slated to come up in Karnataka with the setting up of Xindia steels. And going by the all park industry of US$1.01 billion investment per MT of additional capacity, the steel industry is likely to attract an investment of US$ 69.97 billion by 2011-12 and US$ 220.02 billion by 2019-20.

6 A steel fabrication company mainly specialized in the building of machinery and equipment by cutting, shaping and assembling components made from raw materials. They purchased steel and fabricate products according to the specific structural design requirement of the projects. Thus an accurate picture of each steel element and connection between them with appropriate dimension can be ascertained. Another important task they do is steel detailing. For this they usually employ the services of a steel structural detailer who creates the necessary drawing required to build and fabricate the structure. Sometimes this work is outsourced to engineering firms. Steel fabrication are usually proficient in the manufacturing of sturdy steel frames, cutwork grills and decorative motifs. They usually cater to decks, platforms ect are usually fabricated products. Before you entrust work to a particular steel fabrication company, you need to make sure that they know the intricacies of the trade. Check out the quality of equipment used for the various process involved in the fabrication. Most modern fabrication use laser cutting devices which give an accurate and smooth edge on steel. Steel fabrication companies will never experience a dearth of good projects since today construction industry makes use of a lot of pre-fabrication steel- in their designs due to their ease in assembling and the minimum construction waste involved. Many of the steel fabrication companies are based in china and India mainly due to the low cost labour available here. But this is not the only criterion; the staffs are highly skilled and trained to provide the best in fabricated steel with high degree of precision exercised in every component delivered. The fabrication company has to employ number of staff like welders, assemblers, fabricators and production and quality control staff for performing the various process involved in fabrication.

7 1.3 COMPANY PROFILE Diamond Group is one of India's leading and fast growing steel fabrication units, providing engineering solutions to a host of competent players across the globe. Diamond Group is one of India's leading and fast growing steel fabrication units, providing engineering solutions to a host of competent players across the globe. The Group's core competency lies in Heavy Steel Fabrication and Supply including Machining and Assembly of Steel Structures, Material Handling Equipment and Industrial Process Equipment for domestic and overseas projects in close association with major international companies. Incorporated in 1978, Diamond Engineering(Chennai) Private Limited(DECPL) was acquired by Mr. P. Mohanraj in 1987. Then, the company was a sick unit with just 7 employees. But Mr. P. Mohanraj had the vision to give it a new lease of life, and turn it into one of Indias 1.3.1 Leading steel fabrication companies : 'Anything in Steel' was the maxim coined by him, and has been the guiding principle since 1987. Under his excellent and innovative leadership, Diamond Group is now competing for the World's No.1 position in the fabrication industry by providing qualitative services to its clients. Presently, the Group has state-of-the-art manufacturing facilities spread over 200 acres with 5 workshops, having a monthly production capacity of 5000 tons and permanent workforce of around 4500 employees. Major expansions are underway with plans to have automated machinery installed for streamlined production. Diamond Group caters to various business segments like Cement, Mining, Power (Thermal and Renewable), Steel, Oil and Gas, Petrochemicals, Ship yards, Automotive Industries, etc. Nearly 50-60% of the annual sales is contributed by exports to countries across the world. They have exported their products to countries across the globe includes : Asia Middle east Africa Eroupe America Austrelia

8 1.3.2 Company infrastructure: Production Unit Estb. Yr Area in Sqm Covered Area (Sq m) Diamond (HQ) Emerald - 1 Emerald - 2 Ruby Total 2003 2005 2007 20235 101175 675825 824235 8000 27910 20100 62010 12 KM 18 KM 20 KM 2000 5000 2000 10000 6 15 10 35 1987 9000 4500 Distance from HQ Capacity / Mth in MT 1000 No.of Production Groups 4

1.3.3 UNITS : Diamond : Diamond engineering (Chennai) private limited, was established in 1978 and later transformed to diamond group by p.mohanraj who took the organisation to give it the position of the worlds n.1 fabricator. As the first company that was formed under the diamond group, diamond engineering is the head office for all the other units, the organization is equipped with the best of technology to support the production facilities and also has a well-qualified team if expert to run its operation. Topaz: Topaz engineering was the first company that was added to the diamond group in 1998. Located in sholinganallur, Chennai., topaz engineering is only 500meters from diamond engineering exclusive for horizontal boring machine x-7100mm, y-3000mm, z-2000mm, spindle- 160mm make collet with rotary table10 tons size 1500mm x 1800mm, fully structured and equipped with 10tons EOT crane capacity 3acres of outdoor workspace is used only fabricating and as storage area. Our engineers and skilled trades people work efficiently and to exact specification and well-equipped facilities ensure that projects get completed on time and within the estimated budget.

9 EMARALD UNIT-1 : Emerald Engineering Unit I is a part of the 200 crores Diamond group of Companies, located at Pudupakkam village which is 33 kilometers away from Chennai. We provide steel fabrication solutions to industrial leaders in the areas of cement plants, process plants and petrochemicals. We also provide erection and commissioning services for various plants. The company was started in the year 2003 with a total area of 5 acres. With the latest and sophisticated machinery and material handling systems like 15 tons EOT cranes, 15 tons forklifts we can confidently claim that we deliver the best quality products to our customers. EMERALD UNIT-2 : Emerald Engineering Unit II is a part of the 200 crores Diamond group of Companies, located at Mambakkam village and is 40 kilometers away from Chennai. We cater to industrial leaders by providing steel fabrication solutions in the areas of cement plants, process plants and petrochemicals. Erection and commissioning services of various plants are also provided. The company was started in the year 2004 with a total area of 15 acres. We use complex and advanced machineries for sand blasting and material handling systems like 15 tons EOT cranes, 15 tons of mobile cranes and 15 tons forklifts to deliver best quality products to our customers. RUBY : Ruby Engineering is the biggest company under the Diamond Group of companies. The factory stretches to 60 acres and beyond and is designed to meet world standards. The company has the best of the latest machineries that are mainly used for sand blasting, painting, packing and storing. 1.3.4 PRODUCT PROFILE : METERIAL HANDLING AND INDIVIDUAL PROCESS EQUIPMENT FOR : cement plants power plants mining oil & gas petrochemicals automotive industry

10 1.4 NEED FOR THE STUDY

Performance appraisal helps to evaluate the performance of employee in the organization. It is highly useful to rate the employees such that the productivity can be increased, the valuable employee will be encouraged much more to perform his job in a efficient way. The effective system provides proper information which helps to understand the problems of the employees which in turn lead to set new standards of work. It helps to achieve the target of the organization. This study helps to know the Performance and perception of the employees. This study also lays emphasis in providing ideas, in order to improve the quality of the system.

11 1.5 OBJECTIVES OF THE STUDY Primary objective: To study the effectiveness of Performance appraisal programme in Diamond Engineering (Chennai) Pvt, Ltd., Secondary objectives : To test the employees awareness about the existing Performance appraisal system. To identify the barriers experienced by the employees in the Performance appraisal system. To suggest measures to improve the Performance appraisal system in Diamond Groups.

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1.6 SCOPE OF THE STUDY This study emphasis the scope to identify the importance of performance appraisal. This increases the mutuality between employees and their superiors so that every employee feels happy to work with their supervisor and thereby contributes their maximum to the organization. It is useful to find out whether any bias in the appraisal system of the organization. It helps to understand the attitude of the people towards the performance appraisal and understand the impact of the performance appraisal on the employees in the organization. This can also help the organization to incorporate or redesign the current appraisal system for better output of the employees.

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1.7 REVIEW OF LITERATURE 1.7.1 Meaning of performance appraisal : Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally including both quantitative and qualitative aspects of hob performance. Performance here refers to the degree of accomplishment of the tasks that make up an individuals Job. It indicates how well an individual is fulfilling the job demands. Often, the term is confused worth effort, but performance is always measured in terms of results and not efforts. Performance appraisal is a systematic evaluation of present and potential capabilities of personnel and employees by their superiors, superior's superior or a professional from outside. It is a process of estimating or judging the value, excellent qualities or status of a person or thing. 1.7.2 Characteristics of performance appraisal : According to 'Gupta C.B' The main characteristics of performance appraisal are as follows.'' Performance appraisal is a process of consisting of a series of steps. It is a systematic evaluation of employees strength and weakness in terms of the job. Performance appraisal is a scientific or objective study. Formal procedures are used in the study. The same approach is adopted for all jobholders so that the results are comparable. It is an ongoing or continuous process where in the evaluations arranged periodically according to a definite plan. The main purpose of performance appraisal is to secure information necessary for making objective and correct decisions on employees. 1.7.3 Definition : According to 'Flippo', Performance appraisal is the systematic periodic and an impartial rating of an employees excellence in matters pertaining to his present job and his

14 potential for a better job According to 'C. Higel', The performance appraisal is the purpose of evaluating the performance and qualification of the employees in terms of the requirement of the job for which he is employed, for the purposes of administration including placement, selection for promotion, providing financial rewards and other actions which require differential treatment among the members of a group as distinguished from action affecting all members equally. According to 'N.K. Rowland', defines Performance appraisal is the process of assessing the performance and progress of an employee or of a group of employees on a given job and his potential for future development. According to shubin, Performance appraisal is a systematic appraisal of the employees personality traits and performance on the job and is designed to determine his contribution and relative worth to the firm. According to DeNisi, Performance appraisal is the system whereby an organization assigns some score to indicate the level of performance of a target person or group. According to Gomej-Meijia et al, Performance appraisal involves the identification, measurement of human performance in organization According to Mondy et al Performance appraisal is a system of review and evaluation of an individuals (or teams) performance 1.7.4 Objectives of appraisal : To identify areas for further training needs. To help determine promotions and transfers. To reduce grievances and To improve job performance 1.7.5 The appraisals were found useful particularly for : Promotions Helping the supervisors know their employees. Helping the workers to know their progress. Wage and salary administration. Training and development

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1.7.6 Need for performance appraisal : Performance appraisal is needed in order to : Provide information about the performance ranks. Decisions regarding salary fixation, confirmation, promotion, transfer and demotion are taken based on performance. Provide feedback information about the level of achievement and behavior of the subordinate, rectifying performance deficiencies and to set new standards of work, if necessary. Provide information which helps to counsel the subordinate. Provide information to diagnose deficiency in the employee regarding skill, knowledge, determine training and developmental needs and to prescribe the means for employee growth provides information for correcting placement. To prevent grievances and in disciplinary activities 1.7.7 Purpose of performance appraisal : Performance appraisal aims at attaining the different purposes. They are To create and to maintain a satisfactory level of performance. To contribute to the employee growth and development through training, self and management development programmes. To help the superiors to have a proper understanding about their subordinates.' To guide to job changes with the help of continuous ranking. To provide fair and equitable compensation based on performance. To facilitate for testing and validating selection tests, interview techniques through comparing their scores with performance appraisal ranks. To provide information for making decisions regarding lay off, retrenchment etc. To ensure organizational effectiveness through correcting employee for standard and improved performance, and suggesting the change in employee behaviour. 1.7.8 Uses of performance appraisal :

16 Performance improvement: performance feedback allows the employee, manager and personnel specialists to intervene with appropriate actions to improve performance. Compensation adjustments: performance evaluation help decision makers determine who should receive pay raises Placement decisions: promotions, transfers and demotions are usually based on past of anticipated performance. Often promotions are a reward for past performance. Training and development needs: poor performance may indicate the need for training. Likewise, good performance may indicate untapped potential that should be developed. Career planning and development: performance feedback guides career decisions about specific career paths one should investigate. Staffing process deficiencies: good or bad performance implies strengths or weakness in the personnel departments staffing procedures. Informational inaccuracies: information system. Job design error: poor performance may be a symptom of ill conceived job designs, appraisals help diagnose these errors. Equal employment opportunity: accurate performance appraisals that actually measure job related performance ensure that internal placement decisions are not discriminatory. External challenges: sometimes, performance is influenced by factors outside the work environment, such as family, financial, health or other personal matters. If uncovered trough appraisals, the human resources department may be able to provide assistance. 1.7.9 Factors affecting performance appraisal : Organizational leadership: The leadership at the top determines to a large extent the loyalty and commitment of the employees to the goals of the organization. Organizational structure: Organistic & mechanistic are the two types of organizational structures. Organistic structures tend to be flexible. Such organizational change themselves very fast to cope up with the present changing environment. Mechanistic structures are very rigid and have clearly defined relationship and responsibility. These structures are static and are designed to carry out a nearly fixed strategy in a relative stable environment. poor performance may indicate errors in hob analysis information, human resources plans or other parts of the personnel management

17 Environmental Constraints: For example, the quality of new material may affect the productivity and performance of an employee. If the selection of materials and other things are done at the higher levels in the organization, the performance appraisal of the worker wouldnt be affected. Interdependence of subsystems: every subsystem of a larger organizational system is interdependent. The malfunctioning of a subsystem affects the other subsystems functioning. 1.7.10 Performance appraisal process: Job Analysis, Job Description & Job Specification Establishing Standards of Performance Communicating performance standards to employees Measuring actual performance Objective performance measures a) b) c) d) e) Quality of production Degree of training needed Accidents in a given period Absenteeism Length of service etc.

Subjective performance measures a) c) Rating by supervisors Contribution to socio-cultural values of the environment standards and discussing the appraisal with b) Knowledge about overall goals

Comparing actual performance with employees Initiating corrective action a)

The one, which puts out the fires immediately

b) The other one, which strikes at the root of the problem permanently 1.7.11 Methods of performance appraisal : 1. Traditional method and 2. Modern method. Traditional method:

18 1. Rating scale: This is the simplest and most popular technique for appraising employee The typical rating scale system consists of several numerical scales, each

performance.

representing a job related performance criterion such as dependability, initiative, output, attendance, attitude, co-operation, and the like. Each scale ranges from excellent to poor. The rater checks the appropriate performance level on each criterion. The advantage of the rating scale is that it offers adaptability, relatively easy use and low cost. 2. Checklist: under this method, a checklist of statements on the traits of the employee and his or her job is prepared in two columns viz., a YES column and a NO column. All that the rater should do is tick the yes column is the answer to statement is positive and in column no if the answer is negative. 3. Forced choice method: In the forced choice method the rater is forced to select statements which are readymade. The advantage of thesis method is the absence of personal bias in rating. The disadvantage is that the statements may not be properly framed they may not be precisely descriptive of the rates traits. 4. Forced distribution method: The forced distribution method operates under an assumption that employee performance level conforms to a normal statistical distribution. One of the errors in rating is leniency-clustering a large number of employees around a high point on a rating scale. 5. Critical incident method: The critical incident method of employee assessment has generated a lot of interest these days. The approach focuses on certain behaviours of an employee that make all the difference between effective and non effective performance of a job. Such incidents are recorded by the superiors as and when they occur. 6. Field review method: The field review method is an appraisal by someone outside the assessees once own department, usually from corporate office or HR department. The outsider reviews employee records and holds interviews with the rate and his or her superior. It is primarily used for make promotional decision at the managerial level. 7. Essay method: Essay method is extremely useful in filling information gaps about the employees that often occur in the better structured checklist method. The rater must describe the employee within a number of broad categories such as: The raters overall impression of the employees performance. The promotability of the employee The jobs that the employee is now able or qualified to perform

19 The strength & weakness of the employee and the training & development assistance required by the employee. 8. Ranking method: In this, the superior ranks his or her subordinates in the order of their merit, starting, from the best to the worst. All that the HR department know is that A is better than B. The how and why are not questioned, nor answered. No attempt is made to fractionalize what is being appraised into component elements. This method is subject to the halo and recency effects, although rankings but two or more raters can be averaged to help reduce biases. Its advantages include case of administration and explanation. 9. Paired comparison method: Under this method, the appraiser compares each employee with every other employee, one at a time. This may be called man-to-man assessment. It is an appreciable system wherein the persons to be assessed are compared with each other in pairs, one at a time for different rating. 10. Group appraisal: It s generally observed that some evaluators evaluate their employees according to very high standards though as per the usual practice, this may not be needed. This happens when the performance of the evaluator himself is outstanding, which is why he expects the same from his group. 11. Confidential report: superior appraises the performance of his subordinates based on his observation, judgement and intuitions. Superior writes the report about his subordinate strength, weakness ,intelligence, attitude of work, sincerity, commitment, punctuality, attendance, conduct, character friendliness, etc. The superior keeps his judgement and report confidentially. Modern method : 1. Management by objective: It was Peter F.Drucker who first gave the concept of MBO to the world way back in 1954 when his THE PRACTICE OF MANAGEMENT was first published. The MBO concept, as was conceived by Drucker, reflects a management philosophy which values and utilizes employee contributions. Application of MBO in the field of performance appraisal is a recent thinking. 2. Assessment centre: An assessment centre is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. Mostly used for executive hiring, assessment centres are now being used for evaluating executive or supervisory potential. Assessment centres have many takers. 3. Behaviourally anchored rating scales: BARS are said to be behaviourally anchored rating scales represents a range of descriptive statements of behaviour varying from the least

20 to the most effective. Behaviourally anchored scales, sometimes called behavioural

expectation scales, are rating scales whose scale points are determined by statements of effective and ineffective behaviours. 3. 360 degree appraisals: The 360-degree performance appraisal is an appraisal system that encompasses view of employees superior, co-workers/peers, and customers. Through 360degree performance appraisal, the employee has the chance to review the manager, which is not practiced with traditional performance appraisals. 4. Human resource accounting method: It deals with cost of and contribution of human resources to the organization. Cost if the employee includes cost of manpower planning, recruitment, selection, induction, placement, training, development, wages and benefits etc. Employee contribution is the money value of employee service which can be measured by labour productivity or value added by human resources. 5. Psychological appraisals: large organizations employ full-time industrial psychologists. When psychologists are used for evaluations, they assess an individuals future potential and not past performance. The appraisal normally consists of in-depth interviews, psychological tests, discussions with supervisors and a review of other evaluations. 1.7.12 Problems of performance appraisal: 1. Rating biases: The problem with subjective measure has the opportunity for bias. The rater biases include: (a) Halo effect (b) The error of central tendency (c) The leniency and strictness biases (d) Personal prejudice and (e) The recency effect 2. Failure of the superiors in conducting performance appraisal and post performance appraisal interviews. 3. Most part of the appraisal is based on subjectivity. 4. Less reliability and validity of the performance appraisal techniques. 5. Negative ratings affect interpersonal relations and industrial relations systems. 6. Influence of external environmental factors and uncontrollable internal factors. 7. Feedback and post appraisal interview may have a setback on production. 8. Management emphasizes on punishment rather than development of an employee in performance appraisal.

21 9. Some ratings particularly about the potential appraisal are purely based on guess work. 10. The situation was unpleasant in the feedback interview.

1.8 RESEARCH METHODOLOGY 1.8.1 Research Methodology : Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods/techniques but also methodology. 1.8.2 Research Design : A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. The research design took for the study was descriptive research design. 1.8.3 Descriptive Research : It includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is a description of the state of affairs as it exists at present. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. The researcher has followed a descriptive research design for the study and has no control over the variables. The research aims to study the existing practices as they are. 1.8.4 Questionnaire : The primary instrument used in the study was the questionnaire . A questionnaire is a research instrument consisting of a series of questions and other prompts for the purpose of

22 gathering information from respondents. Although they are often designed for statistical analysis of the responses, this is not always the case. The questionnaire was invented by Sir Francis Galton the form of each question is also important. Questionnaires have advantages over some other types of surveys in that they are cheap, do not require as much effort from the questioner as verbal or telephone surveys, and often have standardized answers that make it simple to compile data. However, such standardized answers may frustrate users 1.8.5 Data Collection : Nature and source of data There are two types of data collection. They are Primary data collection Secondary data collection Data can be primary or secondary and whether one or both are used, and which is used, depends largely on the research question and the availability of these data sources. Secondary data refers to data gathered by others or from other studies. Secondary data is generally less costly and less time consuming than gathering primary data, typically is accumulated before primary data is gathered and may even help determine the course by which primary data is pursued. Data observed or collected directly from first-hand experience. Published data and the data collected in the past or other parties are called secondary data. Both primary and secondary sources of data are used in this study. Primary data was collected directly from the employees with the help of questionnaire and the secondary sources of data are from books, journals and internet. 1.8.6 Sample Design : A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure it would adopt in selecting items for the sample. Sample design must result in a truly representative sample. It must be such which results in a small sampling error. It must be viable in the context of funds available for the research study. 1.8.7 Sampling Unit :

23 A decision has to be taken concerning a sampling unit before selecting sample. Sampling unit may be a geographical one such as state, district, village, etc., or a construction unit such as house, flat, etc., or it may be a social unit such as family, club, school, etc., or it may be an individual. The researcher will have to decide one or more of such units that he has to select for his study. The universe of my research is the Diamond Engineering (Chennai) Pvt, Ltd where 150 employees are working.

1.8.8 Sample Methods : Random sampling from a finite population refers to that method of sample selection which gives each possible sample combination an equal probability of being picked up and each item in the entire population to have an equal chance of being included in the sample. It gives each element in the population an equal probability of getting into the sample; and all choices are independent of one another. It gives each possible sample combination an equal probability of being chosen. 1.8.9 Population Size: The survey conducted among 850 people, the target group was a mix of employees from all levels. 1.8.10 Sample Size: The sample size taken for the study is of 150 respondents 1.8.11 Sampling Frame : The elementary units or the group or cluster of such units may form the basis of sampling process in which case they are called as sampling units. A list containing all such sampling unit is known as sampling frame. Thus sampling frame consists of a list of items from which the sample is to be drawn. If the population is finite and the time frame is in the present or past, then it is possible for the frame to be identical with the population. In most cases they are not identical because it is often impossible to draw a sample directly from population.

24 1.8.12 Hypothesis : A proposition, or set of propositions, set forth as an explanation for the occurrence of some specified group of phenomena, either asserted merely as a provisional conjecture to guide investigation (working hypothesis) or accepted as highly probable in the light of established facts.

Null Hypothesis : The null hypothesis is the proposition that implies no effect or no relationship between phenomena. The null hypothesis is popular because it can be tested and found to be false, which then implies there is a relationship between the observed data, also known as H0, nodifference hypothesis Alternative Hypothesis : The proposition that some condition or relationship exists, accepted in scientific or academic research, if the results fail to support the "null hypothesis" that it does not exist. A testable statement that states the expected result of the study, specifying the effect of the independent variable upon the dependent variable, based on the researcher's knowledge from observations, related studies and previous investigations. 1.8.13 Research Tools : 1. Percentage Method : In the case of dichotomous and multiple choice questions percentage calculated as a part of the analysis of such questions. It refers to the special kind of ratio. Percentages are used in making comparisons between two or more series of data. It is used to give a tabulated representation of the respondents viewpoint Formula: Percentage method= No of respondents x 100 Total no of respondents

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2. Chi-Square Test for Goodness of Fit 2:

The chi-square distribution is used in the common chi-square tests for goodness of fit of an observed distribution to a theoretical one, the independence of two criteria of classification of qualitative data, and in confidence interval estimation for a population standard deviation of a normal distribution from a sample standard deviation. Many other statistical tests also use this distribution, like Friedman's analysis of variance by ranks. Formula: 2 = (O - E)2 E

Where O is the Observed Frequency in each category E is the Expected Frequency in the corresponding category df is the "degree of freedom" (n-1) 22 is Chi Square 3. Karl Pearsons Correlation Coefficient (r) : Co-efficient of correlation is a measure that gives the degree to which the two variables are interrelated. Karl Pearson gave the following formulae for measuring the magnitude of linear correlation co-efficient between two variable X and Y. Formula: The quantity r, called the linear correlation coefficient, measures the strength and the direction of a linear relationship between two variables.

26 r= xy X. Y

1.9 LIMITATIONS OF THE STUDY The sample size is 150 and it cannot be attributed to the opinion of the total work force of the organization. Only questionnaire is used as a data collection tool so we cannot able to generalize the fact. The study is limited only to 45 days duration. Some of the respondents reacted indifferently while filling up the questionnaire. While answering the questionnaire, respondents discussed with their colleagues. This would have influenced the original opinion of the respondents.

27

2.1 DATA ANALYSIS & INTERPRETATIONS Analysis and Interpretation is the important part of any kind of research. By doing this in depth data comparisons, the researcher can begin to identify relationship between various data that will help to understand more about the respondent and guide towards better decisions. The tools used for this study is Chi-square for goodness of fit, Karl Pearsons CoEfficient and Percentage analysis. Table No.2.1.1: Table showing respondents sex.

S.NO 1 2

OPTIONS Male Female TOTAL

NO OF RESPONDENTS 108 42 150

PERCENTAGE (%) 72 28 100

Interpretation:

28 From the above table it is inferred that 72% of the respondents are male and 28% of the respondents are female. Chart No.2.1.1 (a): Chart showing respondents sex.

Table No.2.1.2: Table showing respondents age.

S.NO 1 2 3 4

OPTIONS Up to 20 years 20 30 years 30 40 years Above 40 years TOTAL

NO OF RESPONDENTS 15 84 42 9 150

PERCENTAGE (%) 10 56 28 6 100

Interpretation: Above table observed that 56% of the respondents belongs to 20-30 yrs, 28% of the respondents belongs to 30-40 yrs, 10% of the respondents upto 20 years yrs and 6 % of the respondents belongs to above 40 years.

29 Chart No.2.1.2 (a): Chart showing respondents age

Table No.2.1.3: Table showing respondents educational qualification. S.NO 1 2 3 4 5 OPTIONS SSLC HSC Diploma UG PG TOTAL Interpretation: It is found that 52% of the respondents belongs to Diploma , 24% of the respondents belongs to HSC, 12% of the respondents belongs to UG. Chart No.2.1.3 (a): Chart showing respondents educational qualification. NO OF RESPONDENTS 12 36 78 18 6 150 PERCENTAGE(%) 8 24 52 12 4 100

30

Table No.2.1.4: Table showing respondents Experience S.NO 1 2 3 4 OPTIONS Below 2 yrs 2-6 yrs 6-10 yrs Above 10 yrs TOTAL Interpretation: The table explain that 46% of the respondents belongs to 2-6 yrs, 34% of the respondents belongs to Below 2 yrs, 12% of the respondents belongs to 6-10 yrs and 8% of the respondents above 10 yrs. Chart No.2.1.4 (a): Chart showing respondents Experience. NO OF RESPONDENTS 51 69 18 12 150 PERCENTAGE (%) 34 46 12 8 100

31

Table No.2.1.5: Table showing respondents Income. S.NO 1 2 3 4 OPTIONS Below 10,000 10,000 15,000 15,000- 20,000 Above 20,000 TOTAL Interpretation: From the above table it is inferred that 46% of the respondents belongs to Rs 10000 15000, 28% of the respondents belongs to Rs. Below 10000, 14% of the respondents belongs to Rs. 15000- 20000 and 12% of the respondents Above Rs. 20000. NO OF RESPONDENTS 42 69 21 18 150 PERCENTAGE (%) 28 46 14 12 100

Chart No.2.1.5 (a): Chart showing respondents Income.

32

Table No2.1.6:Table showing respondents opinion about performance appraisal system considers all your abilities and achievements. S.NO 1 2 3 4 5 OPTIONS Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied TOTAL Interpretation: It shows that 42% of the respondents are satisfied with the performance appraisal system considers all your abilities and achievements, 32% of the respondents are highly satisfied, 16% of the respondents says neutral and 10% of the respondents are dissatisfied. Chart No.2.1.6 (a): Chart showing respondents opinion about performance appraisal system considers all your abilities and achievements. NO OF RESPONDENTS 48 63 24 15 0 150 PERCENTAGE (%) 32 42 16 10 0 100

33

Table No2.1.7: Table showing respondents opinion about feedback from their supervisor in the organization.

S.NO 1 2 3

OPTIONS To great extent To some extent Not at all TOTAL

NO OF RESPONDENTS PERCENTAGE (%) 78 63 9 150 52 42 6 100

Interpretation: From the above table it is inferred that 52% of the respondents says to a great extent get feedback from their supervisor, 42% of the respondents says to some extent and 6% of the respondents says they are not receiving any feedback from their supervisor. Chart No.2.1.7 (a): Chart showing respondents opinion about feedback from their supervisor in the organization.

34

Table No2.1.8:Table showing respondents opinion about performance appraisal system has an opportunity for self review and reflection. S.NO 1 2 3 4 5 OPTIONS Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied TOTAL Interpretation: It is observed that 44% of the respondents are satisfied with the performance appraisal system has an opportunity for self review and reflection, 28% of the respondents says neutral, 26% of the respondents are highly satisfied and 2% of the respondents are dissatisfied. Chart No.2.1.8 (a): Chart showing respondents opinion about performance appraisal system has an opportunity for self review and reflection. NO OF RESPONDENTS 39 66 42 3 0 150 PERCENTAGE (%) 26 44 28 2 0 100

35

Table No.2.1.9: Table showing respondents opinion about bias shown by the appraiser during the appraisal.

S.NO 1 2

OPTIONS Yes No TOTAL

NO OF RESPONDENTS 81 69 150

PERCENTAGE (%) 54 46 100

Interpretation: Such a table explained 54 % of the respondents says yes and 46% of the respondents says no for the bias shown by the appraiser during the appraisal. Chart No.2.1.9 (a): Chart showing respondents opinion about bias shown by the appraiser during the appraisal.

36

Table No2.1.10:Table showing respondents opinion about performance appraisal system helps to identify the strength and weakness of the employee. S.NO 1 2 3 4 5 OPTIONS Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied TOTAL Interpretation: It is found that the table 36% of the respondents are satisfied with the performance appraisal system helps to identify the strength and weakness of the employee, 32% of the respondents are highly satisfied, 22% of the respondents says neutral, 6% of the respondents are dissatisfied and 4% of the respondents are highly dissatisfied. NO OF RESPONDENTS 48 54 33 9 6 150 PERCENTAGE (%) 32 36 22 6 4 100

37

Chart No.2.1.10 (a): Chart showing respondents opinion about performance appraisal system helps to identify the strength and weakness of the employee.

Table No2.1.11: Table showing respondents opinion about the present performance appraisal in your company benefits the employee. S.NO 1 2 OPTIONS Yes No TOTAL Interpretation: It is featured that 72% of the respondents says yes and 28% of the respondents says no with the present performance appraisal in your company benefits the employee. NO OF RESPONDENTS 108 42 150 PERCENTAGE (%) 72 28 100

38 Chart No.2.1.11 (a):Chart showing respondents opinion about the present performance appraisal in your company benefits the employee.

Table No2.1.12: Table showing respondents opinion about the duration of the performance appraisal conducted in the organisation. S.NO 1 2 3 OPTIONS Quarterly Half-yearly Annually TOTAL Interpretation: From the above table it is inferred that 82% of the respondents says that the duration of performance appraisal method is conducted Annually, 14% of the respondents says that the duration is Half-yearly and 4% of the respondents says that the duration is Quarterly. NO OF RESPONDENTS 6 21 123 150 PERCENTAGE (%) 4 14 82 100

39

Chart No.2.1.12 (a): Chart showing respondents opinion about the duration of the performance appraisal conducted in the organisation.

Table No2.1.13:Table showing respondents opinion about the level of satisfaction regarding, rewarding and awarding system followed in the organization. S.NO 1 2 3 4 5 OPTIONS Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied TOTAL Interpretation: Are inferred that table 54% of the respondents are satisfied with the level of satisfaction regarding, rewarding and awarding system followed in the organization, 24% of NO OF RESPONDENTS 36 81 27 6 0 150 PERCENTAGE (%) 24 54 18 4 0 100

40 the respondents are highly satisfied, 18% of the respondents says neutral and 4% of the respondents are dissatisfied Chart No.2.1.13 (a): Chart showing respondents opinion about the level of satisfaction regarding, rewarding and awarding system followed in the organization.

Table No2.1.14:Table showing respondents opinion about different types of recognition given in the organization. S.NO 1 2 3 4 5 OPTIONS Award Reward Incentives Allowances None of the above TOTAL Interpretation: NO OF RESPONDENTS 33 60 42 15 0 150 PERCENTAGE (%) 22 40 28 10 0 100

41 From the above table it is inferred that 40% of the respondents says reward, 28% of the respondents says incentives, 22% of the respondents says award and 10% of the respondents says allowances about the different types of recognition given in the organisation. Chart No.2.1.14 (a): Chart showing respondents opinion about different types of recognition given in the organization

Table No2.1.15: Table showing respondents opinion about satisfied with the existing performance appraisal system. S.NO 1 2 3 4 5 OPTIONS Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied TOTAL Interpretation: NO OF RESPONDENTS 51 72 18 9 0 150 PERCENTAGE (%) 34 48 12 6 0 100

42 Above table observed that 48% of the respondents are satisfied about satisfied with the existing performance appraisal system, 34% of the respondents are highly satisfied, 12% of the respondents says neutral and 6% of the respondents are dissatisfied Chart No.2.1.15 (a): Chart showing respondents opinion about satisfied with the existing performance appraisal system.

Table No2.1.16: Table showing respondents opinion about the performance appraisal is helpful in reducing grievance among the employees. S.NO 1 2 3 4 5 OPTIONS Strongly agree Agree Neutral Disagree Strongly disagree TOTAL Interpretation: It is inferred that 38% of the respondents says neutral with the performance appraisal is helpful in reducing grievance among the employees, 28% of the respondents are agree, 22% NO OF RESPONDENTS 6 42 57 33 12 150 PERCENTAGE (%) 4 28 38 22 8 100

43 of the respondents are disagree, 8% of the respondents are strongly disagree and 4% of the respondents are strongly agree. Chart No.2.1.16 (a):Chart showing respondents opinion about the performance appraisal is helpful in reducing grievance among the employees.

Table No2.1.17: Table showing respondents opinion about promotion is purely based on performance appraisal. S.NO 1 2 3 4 5 OPTIONS Strongly agree Agree Neutral Disagree Strongly disagree TOTAL NO OF RESPONDENTS 36 57 27 24 6 150 NO OF PERCENTAGE 24 38 18 16 4 100

Interpretation: It is found that 38% of the respondents are agree that the promotion is purely based on performance appraisal, 24% of the respondents feels strongly agree, 18% of the respondents

44 says neutral, 16% of the respondents feels disagree and 4% of the respondents feels strongly disagree. Chart No.2.1.17 (a):Chart showing respondents opinion about promotion is purely based on performance appraisal.

Table No2.1.18: Table showing respondents opinion about the appraisal helps people set and achieve meaningful goals. S.NO 1 2 OPTIONS Yes No TOTAL Interpretation: It has been seen that the table refers as 68% of the respondents are set and achieve meaningful goals and 32% of the respondents are not set and achieve meaningful goals NO OF RESPONDENTS 102 42 150 PERCENTAGE (%) 68 32 100

45

Chart No.2.1.18 (a): Chart showing respondents opinion about the appraisal helps people set and achieve meaningful goals.

Table No2.1.19: Table showing respondents opinion about the performance rating helps to fix increment. S.NO 1 2 3 4 5 OPTIONS Strongly agree Agree Neutral Disagree Strongly disagree TOTAL NO OF RESPONDENTS 66 51 28 3 3 150 NO OF PERCENTAGE 44 34 18 2 2 100

Interpretation: It shows that 44% of the respondents are strongly agree that the misconduct with their superiors in the organisation will affect their performance, 35% of the respondents feels agree,

46 17% of the respondents says neutral and 2% of the respondents feels disagree & strongly disagree. Chart No.2.6.19 (a):Chart showing respondents opinion about the performance rating helps to fix increment.

Table No2.1.20:Table showing respondents opinion about transfer, demotion, suspension and dismissal is based on performance appraisal. S.NO 1 2 3 4 5 OPTIONS Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied TOTAL Interpretation: From the above table it is inferred that 36% of the respondents are satisfied with the transfer, demotion, suspension and dismissal is based on performance appraisal, 30% of the NO OF RESPONDENTS 39 54 45 6 6 150 PERCENTAGE (%) 26 36 30 4 4 100

47 respondents says neutral, 26% of the respondents are highly satisfied, 4% of the respondents are highly dissatisfied and 4% of the respondents are dissatisfied. Chart No.2.1.20 (a): Chart showing respondents opinion about transfer, demotion, suspension and dismissal is based on performance appraisal.

Table No2.1.21: Table showing respondents opinion about the benefits of performance appraisal. S.NO 1 2 3 4 5 OPTIONS Promotion Increment Co-operation Motivation Recognition TOTAL NO OF RESPONDENTS 105 18 12 9 6 150 PERCENTAGE (%) 70 12 8 6 4 100

Interpretation: The table explain that 70% of the respondents says that they are gaining promotion, 12 % of the respondents says that they are gaining increment, 7% of the respondents says that

48 they are gaining co-operation, 6% of the respondents says that they are gaining motivation and 4% of the respondents says that they are gaining recognition. Chart No.2.1.21 (a): Chart showing respondents opinion about the benefits of performance appraisal

Table No.2.1.22: Table showing respondents opinion about the awareness of performance appraisal programme prevailing in the organization. S.NO 1 2 3 4 5 OPTIONS To great extent To some extent To little extent Undecided Not at all TOTAL NO OF RESPONDENTS 93 36 21 0 0 150 PERCENTAGE (%) 62 24 14 0 0 100

Interpretation: It is found that the table 62% of the respondents are shown awareness to a great extent about the prevailing structure of performance appraisal programme in the organization and 24% of the respondents says to a some extent and 14% of the respondents says to a little extent.

49

Chart No.2.1.22 (a): Chart showing respondents opinion about the awareness of performance appraisal programme prevailing in the organization.

Table No2.1.23: Table showing respondents opinion about the performance appraisal is helpful improving the interpersonal skill. S.NO 1 2 3 4 5 OPTIONS Strongly agree Agree Neutral Disagree Strongly disagree TOTAL NO OF RESPONDENTS 48 72 21 6 3 150 NO OF PERCENTAGE 32 48 16 5 2 100

Interpretation: Such a table explained 48% of the respondents are agree that the performance appraisal is helpful improving the interpersonal skill, 32% of the respondents feels strongly agree, 16% of the respondents says neutral, 5% of the respondents feels disagree and 2% of the respondents feels strongly disagree.

50 Chart No.2.1.23 (a):Chart showing respondents opinion about the performance appraisal is helpful improving the interpersonal skill.

Table No2.1.24: Table showing respondents opinion about the performance rating is helpful for the management to provide employee counseling. S.NO 1 2 3 4 5 OPTIONS Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied TOTAL Interpretation: It is found that 38% of the respondents says neutral about the level of satisfaction regarding rewarding and awarding systems followed in the organisation, 29% of the respondents are satisfied, 17% of the respondents are highly satisfied and 12% of the respondents are dissatisfied and 4% of the respondents are highly dissatisfied. NO OF RESPONDENTS 27 42 63 15 3 150 PERCENTAGE (%) 18 28 42 10 2 100

51 Chart No.2.6.15 (a): Chart showing respondents opinion about the performance rating is helpful for the management to provide employee counseling.

Table No2.1.25: Table showing respondents opinion about their suggestions and interest are considered while evaluating performance appraisal in the organisation. S.NO 1 2 OPTIONS Yes No TOTAL Interpretation: From the above table it is inferred that 52% of the respondents no about their suggestions and interest are not considered while evaluating performance appraisal in the organisation and 48% of the respondents says yes. Chart No.2.1.25 (a): Chart showing respondents opinion about their suggestions and interest are considered while evaluating performance appraisal in the organization. NO OF RESPONDENTS 72 78 150 PERCENTAGE (%) 48 52 100

52

Chi-square test for goodness of fit Satisfied with the existing performance appraisal system. Ho: There exists no significance in Satisfied with the existing performance appraisal system. H1: There exists significance in Satisfied with the existing performance appraisal system. . Table 2.1.26: Table showing respondents opinion about Satisfied with the existing performance appraisal system. Oi 51 72 18 9 0 Ei 30 30 30 30 30 (Oi-Ei) 21 42 -12 -21 -30 (Oi-Ei)^2 441 1764 144 411 900 (Oi-Ei)^2/Ei 14.7 58.8 4.8 13.7 30 (Oi-Ei)2/Ei = 122

53

Degree of Freedom = (n-1) = (5-1) =4 Calculated Value Tabulated Value Ho is rejected Result: There exists a significance in Satisfied with the existing performance appraisal system. = (Oi Ei)^2/Ei = 122 = 9.488 Since calculated value > tabulated value reject Ho.

Karl Pearsons Coefficient of Correlation Promotion is purely based on performance appraisal Vs Transfer, demotion, suspension and dismissal is based on performance appraisal. Table 2.1.27: Table showing Promotion is purely based on performance appraisal Vs Transfer, demotion, suspension and dismissal is based on performance appraisal. X 36 57 27 24 6 x= 150 x = x n = 150/5 = 30 y = x n = 150/5 = 30 r= xy X. Y Y 39 54 45 6 6 y= 150 X= x-x 6 27 -3 -6 -24 Y=y-y 9 24 15 -24 -24 XY 54 648 -45 144 576 xy=1377 X 36 729 9 36 576 X=1386 Y 81 576 225 576 576 Y=2034

54 r= r = 0.8201 Result: There exist a positive correlation between Promotion is purely based on performance appraisal and Transfer, demotion, suspension and dismissal is based on performance appraisal 1377 1386*2034

3.1 FINDINGS

It is found that majority 72% of the respondents are males. Majority 56% of the respondents belongs to 20-30 years. It is found that majority 52% of the respondents comes under diploma. Majority 46% of the respondents has 2-6 yrs experience. It is found that majority 46% of the respondents belongs to Rs 10,000 15,000.
It is inferred that majority 42% of the respondents are satisfied with the performance appraisal system considers all your abilities and achievements.

It is inferred that majority 52% of the respondents says to a great extent get feedback from their supervisor in the organisation.

It is inferred that majority 44% of the respondents are satisfied with the performance appraisal system has an opportunity for self review and reflection.

It is inferred that majority 54% of the respondents feels that their appraiser shows bias during the appraisal.

It is inferred that majority 36% of the respondents are satisfied with the performance appraisal system helps to identify the strength and weakness of the employee.

It is inferred that majority 72% of the respondents feels that present performance appraisal in your company benefits the employee.

55

It is found that majority 82% of the respondents says annually the performance appraisal is conducted in their organization.

It is inferred that majority 54% of the respondents are satisfied with the level of satisfaction regarding, rewarding and awarding system followed in the organization.

It is inferred that majority 40% of the respondents says reward. It is inferred that majority 48% of the respondents are satisfied about satisfied with the existing performance appraisal system.

It is inferred that 38% of the respondents says neutral with the performance appraisal is helpful in reducing grievance among the employees.

It is inferred that majority 38% of the respondents are agree that the promotion is purely based on performance appraisal.

It is inferred that majority 68% of the respondents are set and achieve meaningful goals.

It is inferred that majority 44% of the respondents are strongly agree that the misconduct with their superiors in the organisation will affect their performance.

It is inferred that majority 36% of the respondents are satisfied with the transfer, demotion, suspension and dismissal is based on performance appraisal.

It is inferred that majority 70% of the respondents says that they are gaining promotion.

It is inferred that majority 62% of the respondents are shown awareness to a great extent about the prevailing structure of performance appraisal programme in the organization.

It is inferred that majority 48% of the respondents are agree that the performance appraisal is helpful improving the interpersonal skill.

it is inferred that majority 38% of the respondents says neutral about the level of satisfaction regarding rewarding and awarding systems followed in the organisation.

56 it is inferred that majority 52% of the respondents no about their suggestions and interest are not considered while evaluating performance appraisal in the organisation.

3.2 SUGGESTIONS The management can provide effective training along with the performance appraisal. The organization must consider the suggestion and interest of employees in order to motivate them to perform better in future than prevailing performance. The company can revise the salary structure since its the major factor which affects the employees performance towards the organization. The organisation can appoint the effective person as an appraiser.

57 It is suggested that individual employees may be informed about his /her performance rating. It is suggested that performance appraisal could be done at more frequent intervals, so that it will provide feedback on a continuous basis.

3.3 CONCLUSION A management basic job is the effective utilization of human resources for achievements of organization objective. Performance appraisal method is an important functional development for organization and employees effective working forces. Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees.

58 From the study, it is found that the most of the employees satisfied with the working environment, wages and salary relationship with the colleagues and superiors and the current performance appraisal method. The employees express that the use of performance appraisal system can be improved further for their betterment. The employees' welfare being the prime concern it should be made sure that the performance appraisal system should be modified to suit the needs of the employees. In order to create effective performance appraisal in the organization, necessary steps shall be taken such as revising pay structure, bias between the employees and raters can be eliminated, employees suggestions can be considered, well trained appraisers shall be appointed for evaluating the employees.