Vishnu Project With Questionnaire

A STUDY ON THE IMPACT OF PERFORMANCE APPRAISAL ON SATISFACTION OF EMPLOYEES AND
ORGANIZATIONAL PRODUCTIVITY AT RUBCO LTD.
Introduction:
The Maufacturing Industry of India is one of the oldest industries to be functioning in India currently.
It deals with not just physical or chemical transformation of raw materials into final products but also
employees the various factors of production such as man, machinery, material, money, method etc. As
it is known India is a mixed economy employing both capital intensive and labour intensive modes of
manufacturing, the manufacturing industry even today focuses more on the lab our intensive aspects.
It also contributes greatly to the economy and aids in the growth of the domestic product of the country.
With the initiation of Mkai in India, manufacturing industry in India is reaching peaks of global
recognition.
Manufacturing Industries has various industries included in it, namely- Chemical industry, food
industry, rubber industry, printing, tobacco and others.
Introduction to Rubber:
Indian Rubber, or natural rubber as it is called, initially produced as caoutchouc, comprises of polymers
of a isoprene which is an organic compound, it also comprises of certain impurities of other substances
that are compounds , along with water. The country that leads in the production of Rubber is Malaysia.
Elastomers are forms of polyisoprene that are usually used as natural rubber. This rubber has a lot of
uses in the production units for production of goods that involve rubber. In, India rubber is harvested
in the form of latex from rubber trees. The latex is a sticky substance , which is milky in nature and is
drawn from the tree’s bark by making incinsons. The fluid thus obtained is collected in vessels and the
process is named tapping. The latex thus accumulated is further refined into rubber and is thenready
for processing commercialy. Natural rubber is used in production either in a combination or as a core
component. The property of natural rubber to stretch large and possessing high resilience makes it the
perfect choice, with the advantage of being waterproof.
Rubber therefore comprises of unique properties-chemical and physical. It exhibits a stress strain
behavior i.e the mullins effect and the payne effect, and it can therefore be converted into hyperplastic.
It also enjoys the presence of a double bond in each unit that is repeated and the strain has the property
of crystalizing. Rubber can also undergo vulcanization and is sensitive to ozone cracking.
There are two main solvents for rubber, turpentine and naptha (petroleum). The first is been used since
1764, after it was discovered.whereas the second solvent was discovered in the year 1779. Rubber
doesnot have theproperty to dissolve, therefore to do so, the rubber is shredded into tiny bits before its
immersion.
KRUPANIDHI DEGREE COLLEGE 1

A solution that prevents coagulation of raw latex is ammonia, which is transported from its collection
site to the manufacturing destination.
Introduction to Indian Rubber Industry:
As per the Governmment of India, the statutory board constituted for Rubber is the Rubber Board,
under the Rubber Act,194.., that encloses all activities happening in relation to the same.
The british were the first to introduce cultivation of Rubber on a commercial scale , where the efforts
were made first in 1873, in calcullta’s Botanical Garden. The first plantations of hevea was at
Thattekadu in the year 1902.
During the Second World War it was realized, by the then government that rubber production for India
had a strategic and security motive. It was then that the people in India were motivated to produe rubber
so it could be utilized during the war. After the sufficing of the war, the demands of rubber growers in
India were to set up organizations that were permanent in nature to look after the needs of the people
of the industry.
Thus the government decided to hold a meeting wherein an ad hoc committee was set up to evaluate
the situation and status of the rubber industry and make draw judgement based on the same. Thus on
evaluation the ad Hoc committee recommended that there was a need to formulate an Act , thus the
birth of the Rubber (Production & Marketing) Act, 1947 happened on the 18th April 1947, and further
the Indian rubber board was also formulated., which was amended to be The Rubber Board.
Thus, the Government realized the need for natural rubber post war. Thus the Rubber Act, 1947
envisages the overall development and promotion of the Rubber sector in the country. The aim of
formulating the Board was to help all-round development , control and due guidance.
Since the time , the Indian Rubber Industry ahs been growing leaps and bounds and plays a rewarding
role in the economy. India is known for being the largest producer and thirs in terms of rubber. The
rubber Industry not only has a growth rate of8-9% but also helps in the rise of foreign exchange. It is
also acclaimed to have expanded the capital markets and FDI inflow in India.
Production favourable factors combined with production of other materials/goods, the southern Part of
India has grown at a tremendous rate.
Introduction to the concept:

India is a country that is known for the capital it contains in case of People or manpower. It is evident
that the role people play in an organization has been transforming from being a liability to an asset and

presently capital. When we talk of people, we also realize that every individual in an organization does
not exhibit the same traits and capacities as another person. Thus it is evident that individuals in any
organization are different in all respects, therefore their work pattern, motivation, efficiency differs.
An organization needs to achieve certain goals that are common to it and therefore it needs to
channelize the energies, capacities, capabilities of an individual into synergy of the whole organization.
Performance appraisal is one method or mechanism through which the company can reward an
individual’s work. By doing so the organization does not only motivate the respective individual but
also encourages others to do so.
Performance Appraisal/ Management has over the years proven to be method efficient enough to assess
the abilities, work efficiencies , merit and their worth to the organization keeping in mind their
satisfaction.
An employee being evaluated by the employer is not a new concept, rather it dates back to the 20th
century where individuals were rated on their merit during the second world war.
Today, organizations globally focus greatly on performance appraisals , and believe that an individual
must enjoy the fruit of the work they do. The focus is to enhance individual, group and organizational
level obejctives. Thus, performance management helps in evaluating the contribution of the employees
to these specifc goals. The more transparent and well-structuredthe process of performance appraisal
is the better itmakes it for the employees to understand what they need to do, to what extent, and how
will their contribution be reviewed and valued.
Performance Managemnet system, considers the historic performance of the employees , anlayzes the
current status of the employee and the last of the process is improvement for future performance and
benefit. Thus making Performance Mnagemnet one of the most essential functions of Human
Resources in an Organization.
Definitions:
1. Baron et al ( 2005) define, Performance appraisal is “ a more limited approach which involves
managers making top-down assessment and rating the performance of their subordinates at an
annual performance appraisal meeting”
2. Performance appraisal is a systematic, periodic and so far as humanly possible, the impartial
rating of an employee’s excellence in matters pertaining to his present job and to his
potentialities for a better job. ” – Edwin B Flippo

3. “It is the evaluation or appraisal of the relative worth to the company of a man’s services on his
jobs.” —A1 ford & Beatty
4. “Performance apparisal is a process of evaluating an employee’s performance of a job in terms
of its requirements.”- Scot, Clotheir & Spriegel

Company Profile:
Kerala state Rubber Co-operative Ltd. (Rubco) has, in a short span, redefined the way the co-operative
sector functions and set the pace for the co-operative movement in Kerala today. Rubco was set up in
the year 1997 with the objective of effectively utilizing the abundant rubber resources of kerala. Today,
from a single unit company, Rubco has grown into a Rs.280 crore conglomerate with well-diversified
operations and a market presence extending beyond the boundaries of Kerala. Rubco manufactures and
markets a variety of products from footwear to furniture, from virgin coconut oil to mats and
mattresses. Rubco has also entered into technological alliances with world leaders in the respective
fields, sourcing from them the latest in technology. Substantial investments in modern manufacturing
facilities, coupled with well – organized marketing activities, have seen Rubco’s products earn a
reputation for quality, as also significant market shares. Led by a professional management team and
ably supported by a committed workforce, Rubco is now poised to enter a high growth phase, with
several new initiatives that will take the Group on a path of expansion and diversification.
Rubber holds immense potential for a wide variety of commercial uses which is yet to be fully tapped
into. Through realizing this potential, Rubco hopes to create opportunities and bring industrial progress
to a land that accounts for 92% of the country’s total rubber production. In the process, Rubco also
aims to achieve its vision of turning into a multi-faceted, globally competitive organization, excelling
in its every sphere of activity.
Objective:
Social:
 To ensure a steady market with remunerative price to rubber growers for their natural rubber
 Welfare of rubber growers particulery of small and marginal segment
Commercial:
 Purchase and Sales of Rubber in any form such as Latex, Sheets, Crumbs and Laces
 Manufacturing of Rubber and Rubber Wood based products
 To promote, establish, maintain and manage the business related to manufacture and sales of
tyres, both radial and bias for Heavy Vehicles, LCV, Passenger Cars and other four Wheeler
“RUBCO means RUBBER and RUBBER means RUBCO”

Today from a single unit company RUBCO has grown into a 280 crore conglomerate with
well diversified operations. Under RUBCO group there are wide ranges of business such as:
 Foot wear
 Furniture
 Cycle tyre and tube.
 Rubber coir mattress
 Natural Rubber
 Virgin Coconut oil
 Panel board (treated rubber wood)
 Interior furnishing
 Lush Ayurvedic Product
 Casual shoes
 Tread Rubber
 Crumb Rubber
RUBCO is the largest exporter of natural rubber in the country today. Even in the domestic
market, RUBCO is a major supplier of natural rubber base company in India. Lead by the professional
management team and support by the committee workforce. RUBCO is now poised to enter and high
growth phase with several initiatives on the path of great expansion and diversification
Kerala state rubber co-operative ltd (RUBCO) was set up on June 9, 1997 is an ambitious
project realized with an investment of 260 million. The manufacturing plants among the very few in
the country to employee Austria machinery, sourced from DOA- Austria is a technology leader in
rubberized mattress. The manufacturing plants is among very few in the country employee advanced
Australian machinery sourced from Austria.
RUBCO rubberized coir mattress is scientifically designed to provide proper back support
without compromising on comfort. By the virtue of their ingenious design and contribution and the
unique 3-D technology. RUBCO mattress is firm without being hard and extremely durable. As they
do not say, there are very comfortable and ensure a healthy and rest full sleep.
Rubberized coir mattress are crafted from the four finest materials and finished to perfection,
one of India’s most modern computer controlled machines imported from UK and USA, strict quality

control is observed at every stage of production to ensure that RUBCO rubberized coir mattress always
measure to the highest quality.
A unique feature of the main sheeting plant is that facilitates vertical fibber orientation, a
process that results in a deeper penetration of latex into the sheet, making it very elastic. This provides
the mattress with uniform density throughout and an extra cushioning effect. The plant has an annual
installed capacity of 4.8 million units, consisting of mattress and other rubberized coir process
VISION AND MISSION
VISION
To ensure a steady market with remunerative prices to rubber growers and the welfare of rubber
growers particularly of small and marginal segment. To become a global leader in the growers of the
natural rubber.
MISSION
To promote, establish, maintain and manage the business related to manufacture and sales of tyres,
both radial and bias for heavy vehicle, LCV, passenger car and other four wheelers
Milestone:
1997
 Registered Rubco, Commercial operations in October in the same year
 Commenced procurement of Natural Rubber , directly from farmers
1998
 Foundation stone laid for footwear Manufacturing Factory and Tread Rubber Manufacturing
Unit at Koothuparamba, Kannur, Kerala
 Started Natural rubber Export
 Rubco takes over the reins of Sreekandapuram Latex Pvt. Ltd.
1999
 Entered in to an agreement on technological collaboration for the manufacture of Ultra-Light
weight footwear with Hi-tech Setters, Malaysia
 Foundation stone laid for PLC factory in Sreekandapuram
 Inauguration of commercial production Footwear Manufacturing Unit
 Floated Rubco Sales International Pvt. Ltd. To professionally market the products of Rubco.
 Signed a significant technical collaboration agreement with Long Haut Berhad of Malaysia for
the processing of Rubber Wood and Furniture out of that
 Rubco Footwear hit the market

 Foundation Stone laid for Rubber Wood Processing and Furniture Mnufacturing unit,
Rubberized Coir Mattress Factory at Pampady, Kottayam
2000
 Strated commercial production of Crumb Rubber
 Inauguration of Rubberized Coir Mattress Factory
2002
 Started activities of Coconut complex for the production of Virgin Coconut Oil and ancillary
products
 Started Rubco Rufaas scheme( Collection of Natural Rubber from farmers)
2003
 Signed MOU with Kokonut Pacific Pty. Ltd. Of Australia for the production of Virgin Coconut
Oil
 Signed MOU with Tripura Forest Development and Plantation corporation Ltd. For setting up
a unit of Rubber wood processing and manufacture of furniture.
2005
 New Furniture Range “Home Series” introduced
2006
 Started Interior Design Division and became one of the largest interior Solution for Government
Department.
 Virgin Coconut Oil under the brand name “Nutri-ko” Launched
2008
 Inauguration of Rubco Corporate Office at South Bazaar, Kannur, Kerala.
 Corporation sponsored Scheme from NCDC to the tune of 55.76 Crores.
Rubberized coir mattress segment is a high competitive. This segment is having more than 50% of the
market share in the mattress industry has more than 45 odd brands and over 200 different models. The
major players in the industry are Kurl-on, Duroflex, Rubco and sunidra.
The birth of rubberized coir industry is quite amusing interesting. Prior to the year 1960 people hardly
had any idea of this novel and high utility product. In those days the world famous car manufactures/s
V

olks Wagon of Germany, were using horse hair as cushion famous material for their car seats. As their
production increased from 100 cars per day to 300, there was dearth of this raw material. This
necessitated a suitable alternatives tried like sail fibre, jute fibre, the coir fibre was decidedly found to
be the best. This was the beginning of rubberized coir industry. The Indian rubberized coir industry is
nearly four decades old. It was in 1964 that m/s Bharath Motors of Chennai established its
manufacturing unit. Many other units came up during sixties itself.
After nearly one decades of its introduction, government of India recognized Rubberized coir mattress
as a healthy and hygienic product. Slowly many state government recognized rubberized coir as wealth
from waste and advocated the use of rubberized coir mattress in various hospitals, health clinic etc.
through issue of government circulars.
2.3.1 OTHER TYPES OF MATTRESS
 Cotton mattress
 Form mattress
 Spring mattress
 Air mattresses
 Viscoelectic mattresses
 Rubberized coir mattress
 COTTON MATTRESS
The cotton mattress mainly targets lower income group. This mattress is priced very low. The cotton
mattress industry has a market share of 50%.
 FORM MATTRESS
Form mattress segment comes at next place after rubberized coir mattress industry. This industry is
having a market share of 9 to 10 %.
 SPRING MATTRESS
The industry targets consumers belonging to the upper income group. The major players in spring
industry are spring industry are spring well, Sealy Kurl-on, etc.
 AIR MATTRESSES

Air mattresses are designed to relieve discomfort due to back pain or joint pain. If you are having back
sore or aching joints an air mattress may accommodate to your needs perfectly.
 VISCO ELASTIC MATRESSES

It is a material that was first designed by and developed for NASA. The foam was used to relieve
pressure on astronauts when experiencing G-force upon exiting the earth’s atmosphere.
 RUBBERIZED COIR MATTRESS
This segment is highly competitive. This segment is having more than 50% of the market share in the
mattress industry. This industry has more than 45 odd brands and 200 different models. The major
players in the industry are Kurl on, Duroflex, Sulfex, Rubco and Sunidra.
2.3.2 WORLD SCENARIO

There are mainly three major players in the mattress industry and are as follows
 SEALY CORPORATION
Sealy Corporation is the major mattress manufacture and it got the name form the place it started, Sealy,
Texas.
 KING KOIL
Founded in n1988, King Koil has over a century of experience crafting high quality, affordable bedding
both in united state and throughout the world.
 SIMONS BEDDING COMPANY
Simmons bedding company is a major manufacture of mattress and is one of the oldest companies in
the United States, for over 125 years.
2.1.3 INDIAN SCENARIO
The rubberized coir mattress market of India is estimated to be highly fragmented with little brand
loyalty. The major players in the rubberized coir mattress industry in India are:
 KURL-ON LIMITED
Kurl on limited, a Manipal group company came into existence in 1962. Kurl on limited is the brand
leader in the mattress industry and has acquired major market share in the branded mattress segment.
 DUROFLEX
Duroflex is the largest exporter of sleep and comfort products from India, started its operation in 1963.
Now the company has go three manufacturing units for rubberized coir mattress.

 CENTURY MATTRESS
Century fiber plates Pvt Ltd. Started its rubberized coir plat at Hyderabad in 1988 under the brand name
“CENTURY”. Centaury is the first mattress manufacturer with ISO 9001-2000 series and ISI
certification.
STATE SCENARIO
In India, the coir industry has developed very well especially in Kerala where they produce. Retted
Fiber. Green husks of coconut arte immersed in the salty backwaters for 10 to 12 months.
The main player’s are-:
 DUROFLEX
Duroflex is the leading mattress manufacture in India which started its operation in 1963. Duroflex is
the largest exporters of sleep and comfort products from India.
 EASTERN SUNIDRA
Eastern Mattress Pvt Ltd. Is a part of Kerala renowned business conglomerate the Eastern Group of
Companies
Legal Frame Work Of the Organization:
RUBCO is governed by the Bylaw which provides that RUBCO’s area of operation will cover the
entire state of Kerala, however there is no restriction on the area of operation as far as sales and
marketing of the products dealt in by Rubco is concerned.
As per the law, the main social objectives inter alia include to further rubber cultivation in the state, to
accelerate the industrial growth and strengthen the co-operate movement
Rubber holds immense potential for a wide variety of commercial uses which is yet to be fully tapped
into. Though realizing this potential, RUBCO hopes to create opportunities and bring industrial
progress to a land that accounts for 92% of the country’s total rubber production. In the progress ,
RUBCO also aims to achieve its vision of turning into a multi-faceted, globally competitive
organization, excelling in its every sphere of activity.

Research Methodology:
Title Of the Study:

“A study on the impact of Performance Appraisal on satisfaction of employees and organizational
Productivity at RUBCO Ltd.
Statement of the Problem:
Human Resource Management and Development helps the individuals at an organization to acquire or
develop their skills be it technical or managerial or behavioural. It also helps enhance the knowledge skills,
values, beliefs which are essential to perform effectively and efficiently in an organization. The process of
Performance appraisal helps indicate the performance of employees and subsequently decide upon issues
such as promotions or transfers, salary fixation,training requirements etc. Performance appraisal focuses not
just on the current performance but also on the performance level desired.. Thus to bridge the gap between
expected performance and achieved performance it is essential to study the subject matter.
Objectives:
The primary objectives are:
 To evaluate the shortcomings in the existing performance appraisal system in the organization
 To analyze the factors affecting the Performance appraisal System
 To make suitable suggestions and recommendation to improve the situation
The Secondary Objectives include:

 To make a comparison of the existing system with the standard principles
 To identify the strengths and weaknesses of employees
Statement of Hypothesis:
The following statement of Hypothesis are put forward in the study:
1. Ho: There is no significant relationship between performance appraisal system and Satisfaction of
Employees
2. H1: There is a significant relationship between performance appraisal system and satisfaction of
employees.

Data Collection:
Primary data:
1. Primary Data will be collected using a structured questionnaireas well as personal interview method
2. Visiting the organization and observing the work flow.
Secondary Data:
The secondary data for the work will be obtained from the company magazine, brochures, websites, text
books, reports and other promotional materials.
Plan Of Analysis:
The data collected from various resources will be tabulated and represented using percentage and ranking
method. Graphical tools like bar diagram, pie charts etc will be used to illustrate the tabulated data pictorially.
Inferences will be drawn on the basis of tabulated data.
Introduction:
Appraising the performance of individuals, groups and organizations is a common practice of
al l societies. While in some instances these 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 their children, and all of us, consciously or unconsciously evaluate our "own actions from time to
time. In social interactions, performance is conducted in a systematic and planned manner to achieve
widespread popularity in recent years.
Meaning:
Performance appraisal is a method of evaluating the behavior of employees in the work spot,
normally including both the quantitative and qualitative aspects of hob performance. Performance here
refers to the degree of accomplishment of the tasks that make up an individual's job. It indicates how
well an individual is fulfilling the job demands. Often the term is confused with effort, but performance
is always measured in terms of results and not efforts. Some of the important features of performance
appraisal given, they are:
1. Performance appraisal is the systematic description of an employee's job- relevant strengths and
weaknesses.
2. The basic purpose is to find out how well the employee is performing the job and establish a plan of
improvement.

3. Appraisals are arranged periodically according to a definite plan.

4. Performance appraisal is not job evaluation. Performance appraisal refers to how well someone is doing
the assigned job. Job evaluation determines how much a job is worth to the organization and, therefore,
what range of pay should be assigned to the job.
Use of Performance Appraisal:

• Performance appraisal is helpful in assessing a firms human resources data must be available
that describe the promobility and potential of all employees.
• A well designed appraisal system provides a profile of the organization's human resource
strengths and weaknesses to support this effort.
• Performance evaluation ratings may be helpful in predicting the performance of job applicants.
• Performance appraisal will point out employee specific needs for training and development.
• Performance appraisal is useful in career planning and development.
• Performance appraisal results provide a basis for rational decisions regarding compensation
programmes.
• Performance appraisal data are also frequently used for decisions in several areas of internal
employee relations, including promotion, demotion, termination, lay-off. and transfer.
• Performance appraisal is useful in assessment of employee potential.
• Performance appraisal can be used to determine whether HR programmes such as selection,

training, and transfers have been effective or not.
Objectives of Performance Appraisal:

Performance appraisal aims at attaining the different objectives, they are
1. To create and maintain a satisfactory level of performance.
2. To contribute to the employee growth and development through training, self and management
development programmes.
3. To help the superiors to have a proper understanding about their subordinates
4. To facilitate fair and equitable compensation based on performance.
5. To facilitate for testing and validating selection tests, interview techniques through comparing
their scores with performance appraisal ranks.

6. To provide information for making decisions regarding lay off, retrenchment etc.
7. To ensure organizational effectiveness through correcting employee for standard and improved
performance, and suggesting the change in employee behavior.
Appraisal Process:
Each step in the process is crucial and is arranged logically. Many organizations make every
effort to approximate the ideal process, resulting in first-rate appraisal systems. Unfortunately, many
others fail to consider one or more of the steps and, therefore have less- effective appraisal system.
Objectives of
Performance appraisal
Establish job
Expectations
Design an appraisal
Programme
Appraise performance
Performance
Interview
Use appraisal data for

appropriate Purpose

1. Objectives of Appraisal:
Objectives of appraisal include effecting promotions and transfers, assessing training needs,
awarding pay increases, and the like. The emphasis in all these is to correct the problems.
2. Establish job expectations:

The second step in the appraisal process is to establish job expectations. This includes
informing the employee what is expected of him or her on the job.
3. Design appraisal programme:

Designing an appraisal programme posses several questions which need answers. They are (i)
Formal versus informal appraisal; (ii) Whose performance is to be assessed? (iii) Who are the raters?
(iv)What problems are encountered? (v) How to solve the problems? (vi) What should be evaluated?
(vi i ) When to evaluate? (vii i) What methods of appraisal are to be used?
4. Performance Interview:
Performance interview is another step in the appraisal process. Once appraisal has been made
of employees, the raters should discuss and review the performance with the rates, so that they will
receive feedback about where they stand in the eyes of superiors.
5. Use of Appraisal data:

The final step in the evaluation process is the use of evaluation data. The data and information
generated through performance evaluation must be used by the HR department.
Methods of Performance Appraisal:
With the evaluation and development of appraisal system, a number of methods or techniques
of performance appraisal have been developed.The important among them.

Traditional Methods Modern Methods
1. Graphic Rating Scales 1. Behaviourally Anchored rating Scales (BARS)
2. Ranking method 2. Assessment Centres
3. Paired Comparison Method 3. Human Resource Accounting
4. Forced distribution Method 4. Management By Objectives
5. Check list method 5. Behaviour Observation Scales (BOS)
 Simple checklist
 Weighted checklist
 Critical Incident method
6. Essay or Free form Appraisal 6. Psychological Appraisals
7. Group appraisal 7. Results method
8. Confidential Reports 8. Productivity Measures
Traditional Methods
1) Graphic Rating Scales:
Graphic rating scales compare individual performance to an absolute standard. In this method,
judgments about performance are recorded on a scale. This is the oldest and widely used technique.
This method is also known as linear rating scale or simple rating scale. The appraisers are supplied
with printed forms, one for each employee. These forms contain a number of objectives, behavior and
trait - based Qualities and characters to be rated like quality and volume of work, job knowledge,
dependability, initiative, attitude etc., in the case of workers and analytical ability, creative ability,
initiative, leadership qualities, emotional stability in the case of managerial personnel. These forms
contain rating of scales. Rating scales are of two types, viz., continuous rating scale and discontinuous
rating scales. In continuous order like o, 1, 2, 3, 4 and 5 and in discontinuous scale the appraiser assigns
the point to each degree. The points given by the rater know performance regarding each character.
The points given by the rater to each character are added up to find out the overall performance.
Employees are ranked on the basis of total points assigned to each one of them.

One reason for the popularity of the rating scales is its simplicity, which permits many
employees to be quickly evaluated. Such scales have relatively low
Design cost and high in case of administration. They can easily pinpoint significant dimensions of the
job. The major draw back to these scales is their subjectivity and low reliability. Another limitation is
that the descriptive words often used in such lies may have different meanings to different raters.
2) Ranking Method:
Under this method the employees are ranked from best to worst on some characteristics.
The rater first finds the employee with the highest performance and the employees with the lowest
performance in that particular job category and rates the former as the best and the later as the poorest.
Then the rater selects the next highest and next lowest and so on until he rates all the employees in that
group. Ranking can be relatively easy and inexpensive, but its reliability and validity may be open to
doubt. It may be affected by rater bias or varying performance standards. Ranking also means that
somebody would always be in the backbench. It is possible that the low ranked individual in one group
may turnout to be superstar in another group. One important limitation of the ranking method is that
size of the different between individuals is not well defined. For instance, there may be little difference
between those ranks third and fourth.
3) Paired Comparison Method:
This method is relatively simple. Under this method, the appraiser ranks the employees by
comparing one employee with all other employees in the group, one at a time. As illustrated, this
method results in each employee being given a positive comparison total and a certain %age total
positive evaluation.
4) Forced Distribution Method:
The rater may rate his employees at the higher or at the lower end of the scale under the earlier
methods. Forced distribution method is developed to prevent the raters from rating too high or too low.
Under this method, the rater after assigning the points to the performance of each employee has to
distribute his ratings in a pattern to conform to normal frequency distribution. Thus, similar to the
ranking technique, forced distribution requires the raters (supervisors) to spread their employee

evaluation in a prescribed distribution. This method eliminates central tendency and leniency biases.
However, in this method employees are placed in certain ranked categories but not ranked within the
categories. Quite often work groups do not reflect a normal distribution or individual performance.
This method is based on the questionable assumption, as group of employees will have the same
distribution of excellent, average and poor performers. If one department has all outstanding
employees, the supervisor would find it extremely difficult to decide who should be placed in the lower
categories. Difficulties can also arise when the raters most explain to the employee why he was placed
in one grouping and others were placed in higher groupings.
5) Checklist Methods:
The Checklist is a simple rating technique in which the supervisor is given a list of statement
or words and asked to check statements representing the characteristics and performance of
each employee. There are three types of checklist methods, viz, simple checklist, weighted checklist
and forced choice method.
(a) Simple Checklist Method:

The checklist consists of large number of statements concerning employee behavior.
Example: Simple Checklist Method,
Wadia Industries Ltd.,
Performance Appraisal Form
Name of Employee: Number:
Designation:
Department:
Checklist of Qualities:
1. Behavior is the employee punctual in attending the office?
A) Yes B)No
2. Does the employee behave courteously with his superiors?
A) Yes B) No
3. Does the employee maintain sound customer relations'?
A) Yes B) No

4. Is the employee sincere in doing his job?

A) Yes B) No
The rater checks to include if the behavior of an employee is positive or negative to each statement.
Employee performance is rated on the basis of number of positive checks. The negative checks are not
considered in this method. A difficulty often arises because the statements may appear to be virtually
identical in describing the employee. The words or statements may have different meanings to different
raters.
(b)Weighted Checklist:
The weighted checklist method involves weighting different items in the checklist having a
series of statements about an individual, to indicate that some are more important than others. The rater
is expected to look into the questions relating to the employee's behavior, the attached rating scale (or
simply positive /negative statements where such a scale is not provided) and tick those traits that closely
describe the employee behavior. Often the weights are not given to the supervisors who complete the
appraisal process, but are computed and tabulated by someone else, such as a member of the personnel
unit. In this method the performance ratings of the employee are multiplied by the weights of the
statements and coefficients are added up. The cumulative coefficient is the weighted performance score
of the employee. Weighted performance score is compared with the overall assessment standards in
order to find out the overall performance of the employee.
The weighted checklist, however, is expensive to design to design, since checklist for each
different job in the organization must be produced. This may prove time consuming also in the end.
Though the weighted checklist method is evaluative as well as development, it has the basic problem
of the evaluator not knowing the items, which contribute mostly of successful performance.
(C) Forced Choice Method:

This method was developed at the close of World War II. Under this method, a large number
of statements in groups are prepared. Each group consists of four descriptive statements (treated)
concerning employee behavior. Two statements are most descriptive (favorable) and two are least
descriptive (unfavorable) of each m tetrad. Sometimes there may be five statements in each group out
of which one would be neutral. The actual weightings of the statements are kept secret.

The appraiser is asked to select one statement that that mostly describes employee's behavior out of the
two favorable statements are kept secret. The appraiser is asked to select one statement that that mostly
describes employee's behavior out of the two unfavorable statements. The items are usually a mixture
of positive and negative statements. The intent is to eliminate or greatly reduce the rater's personal bias,
specially the tendency to assign all high or low ratings. The items are designed to discriminate effective
from ineffective workers as well as reflect valuable personal qualities.
6) Critical Incident Method:

Employees are rated discontinuously, i.e., once in a year or six months under the earlier methods. The
performance rated may not reflect real and overall performance, as the rater would be serious about
appraisal method, i.e., critical incident method has been developed. Under this method, the supervisor
continuously records the critical incidents of the employee performance or behavior relating to all
characteristics (both positive and negative) in a specially designed notebook. The supervisor rates the
performance of his subordinates on the basis of notes taken by him. Since the critical incident method
does not necessarily have to be a separate rating system, it can be fruitfully employed as documentation
of the reasons why an employee was rated in a certain way.
The critical incident method has the advantage of being objective because the rater considers
the records of performance rather than the subjective points of opinion.
7) Essay or Free From Appraisal:

This method requires the manager to write a short essay describing each employee's
performance during the rating period. This format emphasizes evaluation of overall performance,
based on strengths weakness of employee performance, rather than specific job dimensions. By asking
supervisors to enumerate specific examples of employee behavior, the essay technique minimizes
supervisory bias and halo effect.
8) Group Appraisal:
Under this method, an employee is appraised by a group of appraisers. This group consists of
the immediate supervisor of the employee, to other supervisors who have close contact with employee's
work, manager or head of the department and consultants. The head of the department or manager may
be the chairman of the group and the immediate supervisor may act as the coordinator for the group
activities. This group uses any one or multiple techniques discussed earlier. The immediate supervisor

enlightens others members about the job characters, demands, standards of performance etc. Then the
group appraises the performance of the employee, compares the actual performance with standards,
find out the deviations, discusses the reasons therefore, suggests ways for improvement of
performance, prepares action plans, studies the need for change in job analysis and standards and
recommends change, it necessary. This method is widely used for purpose of promotion, demotion and
retrenchment appraisal.
9) Confidential Report:
Assessing the employee's performance confidentially is a traditional method of performance

appraisal. Under this method, superior appraises the performance of his subordinates based on his
observations, judgments and institutions. The superior keeps his judgment and report confidentially.
In other words the superior does not allowed the employee to know the report and his performance.
Superior writes the report about his subordinates, strengths. Weakness, intelligence, attitude to work,
sincerity, commitment, punctuality, attendance, conduct, character, friendliness, etc,
Though confidential report is a traditional method, most of the public sector organizations still
follow this method in appraising the employee's performance. This method suffers from a number of
limitations.
Modern Methods
1) Behaviorally Anchored Rating Scales (BARS):
The Behaviorally Anchored Rating Scales (BARS) method combines elements of the traditional rating
scales and critical incidents methods. Using BARS, job behaviors from critical incidents - effective
and ineffective behaviors are described more objectively. The method employs individuals who are
familiar with a particular job to identify its major components. They then rank and validate specific
behaviors for each of the components. BARS require considerable employee participation; its
acceptance by both supervisors and their subordinates may be greater. Proponents of BARS also claim
that such a system differentiates among behavior, performance and results, and consequently is able to
provide a basis for setting developmental goals for the employee. Because it is job - specific and
identities observable and measurable behavior, it is more reliable and valid method for performance
appraisal.

2) Assessment Centre:
This method of appraising was first applied in German Army in 1930. Later business and
industrial houses started using this method. This is not a technique of performance appraisal by itself.
In fact it is a system or organization, where assessment is done by several individuals and also by
various experts by using various techniques.
In this approach individual from various departments are brought together to spend two or three days
working on an individual or a group assignment similar too the ones they'd be handling when
promoted. All assess get an equal opportunity to show their talents and capabilities and secure
promotion based on merit. An assessment model is shown below.
Human Resource Accounting deals with cost of and contribution of human resource to the
organization. Cost of 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.
3) Management by objectives:
Although the concept or management by objectives was advanced by Peter F.Duckers way back
in 1954, it was described only recently as 'large range' in performance appraisal. Refinements brought
out by George Odione, Valentines, Humble and others have enriched the concept and made it more
acceptable all over the globe as an MBO in their work settings. Some of the companies which
implemented MBO reported excellent results, others disappointments, and many in decisions. Started
briefly, MBO is a process whereby the superiors and subordinate managers of an organization j oi nt l y
identify its common goals, define each individual's major areas of responsibility in terms of results
excepted of him, and use these measures of guides for operating the unit and assessing the contribution
of its members. Generally, the unit and assessing the contribution of its members.
Generally the 1VIBO is undertaken along the following lines.

■ The subordinate and superior jointly determine goals to be accomplished during the appraisal
period and what level of performance is necessary for the subordinate to satisfactory achieve
specific goals.
■ During the appraisal period the superior and subordinate update and later goals as necessary
due to changes in the business environment.

4) Psychological Appraisal:
Psychological appraisal are conducted to asses the employee potential, Psychological appraisal
consist of
(a) In - depth interviews
(b) Psychological tests
(c) Consultations and discussions with the employee
(d) Discussions with the superior's sub-ordinates and peers
(e) Reviews of others evaluations.
Evaluation is conducted in the areas of (a) employee's intellectual abilities, (b)Emotional stability, (c)
motivational responses, (d) sociability, (e) employees ability to comprehend the vents, and (f) ability
to foresee the future.
5) Counseling:
After the performance of the employee is appraised, the superior should inform the
employee about the level of his performance, the reason for the same, need for and the
methods of improving the performance. The superior should counsel the employee about his
performance and the methods of improving it.
Counseling is a planned, systematic intervention in the life of an individual who is
capable of choosing the goal and the direction of his development. Thus, the purpose of
counseling is to help the employee aware of his own performance, his strengths and
weakness, opportunities availabilities available for performance counseling can be done in
the form of performance interview by the superior.
6) Human Resource Accounting:
This deals with the contribution that a worker makes to the organization and the cost incurred by
the organization in keeping the employee associated with the organization. The cost usually
includes cost incurred in manpower planning , different functions such as hiring, selection,
induction, orientation, training , compensation , maintainence etc.
Positive performance is measured in the form of the percentage of excess of what employee has
contributed in comparison to the cost that the company bares for that employee.. Such percentages
are ranked to the minimum of zero level

7) Behaviour observation Scales (BOS):

As the name suggests, this methoda deals with the frequency of a particular behavior demonstrated
by an employee. The appraisal is done by the employer through observation, where at the end of
the process feedback is also provided
8) Results Method:
This method focuses on magnitude of accomplishments by the employee. These accomplishments
are measurable and specific in nature for example, number of customers served or number of units
produced.. this method is beneficial in the sense that it is less subjective and presence of bias is
less. Also it is based on the principle of division of work and labour. This method is mainly aimed
at Empowering the employees and making them independent where the amount they are paid
depends on the goals achieved by them.
9) Productivity Measures:
Under this method, employees are appraised based on the ratio of output they turned out to the
input they utilized. These methods are not free from limitations as measurement of all kinds of
output as well as all kinds of input would be difficult.
The Post Appraisal Interview:

The post appraisal interview has been considered by most of the organizations, as well as
employees, as the most essential part of appraisal system. This interview provides the employee the
feedback information, and an opportunity to appraiser to explain the employee his rating, the traits and
behavior he has taken into consideration for appraisal etc.
It also gives the opportunity to employee to explain his views about the rates, standards or
goals, rating scale, internal and external environment causes for low level of performance, his resources
responsible for performance etc. further it helps both the parties to review standards, set new standards
based on the reality factors, and helps the appraiser to offer his suggestions, help, guide and coach the
employee for his advancement. Thus, the post appraisal interview is designed to achieve the following
objectives.

1. To let employees know where they stand.

2. To help employees do a better job by clarifying what is expected of them;
3. To plan opportunities for development and growth;
4. To strengthen the superior -subordinate working relationship by developing a mutual agreement
of goals;
5. To provide an opportunity for employees to experience themselves on performance
related issues.
Relating Performance Appraisal to Rewarding:

Management should recognize and performance. The forms of recognizing and rewarding
performance include: (a) Private and public praise, (b) Written commendation, (c) published
commendation, (d) increased autonomy, (e) change in job title, (f) Status symbols like office space,
furnishings, (g) performance bonuses, (h) salary increases, (i) promotion in grade, or increase in
responsibilities and (j) various forms of supplementary compensation. Managers should match the
rewards both with performance and with the perception and needs of the employee.
6) Managerial Appraisal:
It is relatively easy to appraise the performance of technical or operative employees compared

to managerial personnel. This is because; the performance of operative employees can be measured
quantitatively, whereas the performance of managers cannot be determined quantitative terms. Harold
Koontz has developed a concept of managerial functions, viz., planning, organizing, leading
motivating, staffing and controlling. Performing a number of or series of activities can perform each
of these functions. For example, performing staffing functions requires performing a series of activities
like analyzing jobs of his department, planning for human resources, deciding upon internal and
external recruitment. Thus each function and sub functions of manager are elaborated into a series of
activities. The checklist contain the questions in these areas is prepared with a five degree rating scale,
i.e., externally poor performance, neither poor nor fair performance and externally fair performance.
Thus this technique measures the performance of managers in managing organizational environment.
Importance of performance appraisal:

For many organizations the primary goal of an appraisal system is to improve individual
and organizational performance. There may be other goals, however. In fact, performance
appraisal data are potentially valuable for virtually every human resource functional area.
System Of Performance Appraisal:
Performance appraisal is a nine-step process:

1. Establish performance standards.
2. Communicate standards/expectations to employee.
3. Measure actual performance due to the environment influences.
4. Adjust the actual performance due to the environmental influences.
5. Compare the adjusted performance what that of others and previous.
6. Compare the actual performance with standards and find out deviations, if any.
7. Communicate the actual performance to the employee concerned.
8. Suggest changes in job analysis and standard, if necessary.
9. Follow-up performance appraisal report.
At the first stage, performance standards are established based on the job description and job
specification. The standard should be clear, objective and incorporate all the factors.
The second stage is to inform these standards to all the employees including appraisers.
The third stage is following the instructions given for appraisal, measurement of employee
performance by the appraisers through observations, interviews, records and reports.
Fourth stage is finding out the influence of various internal and external factors on actual
performance. The influence of these factors may be either inducing or hindering the employee
performance. The measured performance may be adjusted according to the influence of external and
internal factors. The performance derived at this stage may be taken actual performance.

Fifth stage is comparing the actual performance with that of other employees and pervious
performance of the employee and others. This given an idea where the employee to the influence of
external and internal factors. The performance derived at this stage may be taken actual performance.
Sixth stage is comparing the actual performance with the standards and finding out deviations.
Deviations may be positive or negative. If employee's performance is more than standards, it is positive
deviation and vice-versa is negative deviation.
Seventh stage is communicating, the actual performance of the employee and other employees
doing the same job and discuss with him about the reasons for the positive or negative deviations from
the pre-set standards as the case may be.
Eighth stage is suggestions necessary changes in standards in standards, job analysis, and
internal and external environment.
Ninth stage is follow-up of performance appraisal report. This stage includes guiding,
counseling, coaching and directing the employee or making arrangements for training and development
of the employee in order to ensure improved performance. If actual performance is very poor
and beyond the scope of improvement it is necessary to take steps for demotion or retrenchment
or any other suitable measure.

Key elements of performance appraisal system are presented in figure below.
Human Performance Employee

Performance Appraisal Feedback
Performance
Measures
Performance – Related
Standards
Human Resources Employee

Decisions Records

A Study on Impact of Performance Appraisal on Satisfaction of Employees and Organizational
Productivity at RUBCO .
The usual steps are as follows
Plan the performance
Determine responsibility for appraisal

Appraisal period
Examine work performed
Appraisal the results
Conduct appraised interview

Discuss goals for next period
Problems in performance appraisal:
Performance appraisal has come under a heavy barrage of criticism. The list of the
problems that have been associated with performance appraisal are as follows:
• A potential weakness of traditional appraisal methods is that they lack

objectivity.
• A huge challenge that impedes an effective performance evaluation is the bias,

which can be either positive or negative.
• Some times halo error occurs when a manager generalizes one positive
performance feature or incident to all aspect of employee performance.
• Leniency: - Giving an undeserved high performance appraisal rating to an
employee.
• Strictness: - Being unduly critical of an employee's work performance.
30
KRUPANIDHI DEGREE COLLEGE
Establishment of performance appraisal criteria:
The most common appraisal criteria are traits, behaviors, competencies, goal achievement,
and improvement potential. The main objective of establishment of performance criteria is to
identify the aspects of a person's performance that an organization should evaluate.
• Traits: -
Certain employee traits such as attitude, appearance, and initiative are the basis for some
evaluations.
• Behaviors: -
When an individual's task outcome is difficult to determine, organizations may evaluate
the person's task related behavior or competencies. If certain behaviors result in desired
outcomes, there is merit in using them in the evaluation process.
• Competencies: -
This includes a broad range of knowledge, skills, traits, and behaviors that may be technical
in nature, relate to interpersonal skills or be business oriented.
• Goal achievement: -
If organizations consider ends more important than means, goal achievement
outcomes become an appropriate factor to evaluate.
• Improvement potential: -
When organizations evaluate their employees* performance, many of the criteria used focus on
the past. From a performance management view point the problem is that you cannot change the past.
Unless a firm takes further steps, the evaluation data become merely historical documents. Therefore
firms should emphasize the future, including the behaviors and outcomes needed to develop the
employee, and in the process achieve the firm's goals. This involves an assessment of the employee's
potential.
31
Characteristics of an effective appraisal system:
The basic purpose of a performance appraisal system is to improve performance of individuals,

teams, and the entire organization. The system may also serve to assist in the making of administrative
decisions concerning pay increases, transfers, or terminations. In addition, the appraisal system must be
legally defensible. Organizations should seek an accurate assessment of performance that permits the
development of a plan to improve individual and group performance.
The following factors assist in accomplishing these purposes;
• Job related criteria: -

Job relatedness is perhaps the most basic criteria in employee performance appraisal.
More specifically, evaluation criteria should be determined through job analysis.
• Performance expectations: -
Managers and sub-ordinates must agree on performance expectations in advance of the appraisal
period. On the other hand, if employees clearly understand the expectations, they can evaluate their own
performance and may timely adjustments as they perform their jobs without having to wait for the
formal evaluation review.
• Standardization: -
Firm should use the same evaluation instrument for all employees in the same job category-
who work for the same supervisor. Supervisors should also conduct appraisals covering similar periods
for these employees. Regularly scheduled feedback sessions and appraisal interviews for all
employees are essential.
 Trained appraisers: -
The individual or individuals who observe at least a representative sample of job performance
normally have the responsibility for evaluating employee performance. This person is often the
employee's immediate supervisor. Training should be given to these appraisers to ensure accuracy and
consistency. A training module posted on the internet or company intranet may serve to provide
information for managers as needed.
32
• Continuous open communication: -

Most employees have a strong need to know how well they are performing. A good appraisal system
provides highly desired feedback on a continuing basis. There should be few surprises in the
performance review.
• Performance reviews: -
A performance review allows them to detect any errors or omissions in the appraisal, or an
employee may simply disagree with the evaluation and want to challenge it. Constant employee
performance documentation is vitally important for accurate performance appraisal.
• Due process: -
Ensuring due process is vital. If the company does not have a formal grievance procedure, it should
develop one to provide a employees an opportunity to appeal appraisal results that they consider
inaccurate or unfair. They must have a procedure for pursuing their grievances and having them
addressed objectively.
Limitations of the Study:

As the study revolves around the performance appraisal of human resources aspects the
overall organization performance cannot be ascertained. In spite of giving honest and sincere
efforts there are several limitations, which are as follows:
 The study has limited to one month of time

 The perception bias or attitude of the respondents may also act as hurdles to the study.
 The study is only confined to performance appraisal.
 The study cannot be oriented with all HRM practices followed by
 The sample size taken for the research is small due to the constraint of time.
 Employees are not allowed to provide in-depth information which acts as a constraint.
33
CHAPTER 4- DATA ANALYSIS AND INTERPRETETION
4.1. Showing the classification based on the age group of the respondents
Table 4.1
Serial No. Age Group No. of respondents Percentage
1 21-30 39 32.5%
2 31-40 48 40%
3 41-50 30 25%
4 51-60 3 2.5%
5 Above 60 0 0
Total 120 100%
Graph 4.1
100
90
80
70
60
50
40
40 32.5
30 25
20
10 2.5
0
21-30 31-40 41-50 51-60
Age Group
INTERPRETATION:
From the above table it is inferred that 40% of the employees are in the group of 31-40 years and
2.5% of the employees are in the age group of 50-60 years.
34
4.2. Showing the classification based on educational qualification on the respondents.
Table 4.2
Serial No. Education No. of respondents Percentage
1 Below SSLC 0 0%
2 SSLC 11 9.16%
3 Pre Degree 17 14.17%
4 Degree 72 60%
5 PG 20 16.67%
Total 120 100%
Graph 4.2
100
90
80
70
60
50
40
30
20
10
0
below SSLC SSLC Pre Degree Degree/Technical PG
Qualification of the respondents
INTERPRETATION:
From the above table it is inferred that 60% of the employees comes under the educational
qualification Degree and no employees have qualification below SSLC.
35
4.3. Showing the classification based on years of service of the respondents.
Table 4.3
Serial No. Experience No. of respondents Percentage
1 0-5 30 25%
2 6-10 38 31.67%
3 11-15 45 37.5%
4 16-20 7 5.83%
5 above 0 0%
Total 120 100%
Graph 4.3
40
35
30
25
20
15
10
0
0 to 5 6 to 10 11 to 15 16 to 20 above 20
Years Of Service of Respondents
INTERPRETATION:
From the above table it is inferred that 37% of the employee are in the service of 11-15 years and
there is no employees in service above 20 years.
36
4.4. Showing the effectiveness of present appraisal system
Table 4.4
Serial No. Particulars No. of respondents Percentage
1 Strongly Agree 4 3.33%
2 Agree 84 70%
3 Neutral 16 13.33%
4 Disagree 14 11.67%
5 Strongly disagree 2 1.67%
Total 120 100%
GRAPH 4.4
80
70
60
50
40
30
20
10
0
strongly agree agree neither agree or nor disagree strongly disagree
disagree
effectiveness of present appraisal system
INTERPRETATION:
It is known from the table that 70% of the employees agree that the existing performance appraisal
system is effective and 1.67% of the employees strongly disagree that the existing performance appraisal
system is effective.
37
4.5. Showing whether the work standard set by the organization is performable
Table 4.5
1 Strongly Agree 6 5%
2 Agree 96 80%
3 Neutral 17 14.17%
4 Disagree 1 0.83%
5 Strongly disagree 0 0%
Total 120 100%
Graph 4.5
90
80
70
60
50
40
30
20
10
0
disagree
work standard set by the organiozation is performable
INTERPRETATION:
It is inferred from the above table that 80% of the employees agree that the work standard set by
the organization is performable and 5% of the employees strongly agree that the work standard set by the
organization is performable.
38
4.6. Showing whether timely and adequate feedback is given to the employees.
Table 4.6
2 Agree 52 43.33%
3 Neutral 34 28.33%
Total 120 100%
Graph 4.6
50
45
40
35
30
25
20
15
10
5
0
disagree
whether timely and adequate feedback is given to the employees
INTERPRETATION:
It is shown that the table that 43% of the employees agree that timely and adequate feedback is
given to the employment and 0.83 of the employees strongly agree that the timely and adequate feedback
is given to the employee.
39
4.7. Showing that timely feedback helps in improving performance.
Table 4.7
2 Agree 52 43.33%
3 Neutral 11 9.17%
4 Disagree 3 2.50%
Total 120 100%
Graph 4.7
50
45
40
35
30
25
20
15
10
5
0
disagree
timely feedback helps in improving performance
INTERPRETATION:
It is inferred from the above table that 45% of the employees strongly agrees that timely feedback
helps in improving the performance and 2.5% of the employees disagrees that the timely feedback helps in
improving the performance.
40
4.8. Showing that performance appraisal system improves motivation of employees.
Table 4.8
2 Agree 75 62.50%
3 Neutral 28 23.33%
4 Disagree 10 8.33%
Total 120 100%
Graph 4.8
70
60
50
40
30
20
10
0
disagree
performance appraisal system improves motivation of employees
Interpretation:
It is shown in the table that 62% of the employees agrees that the present performance appraisal
system improves motivation of employees and 2.5 of the employees strongly disagrees that present
performance appraisal system improves motivation of employees
41
4.9. Showing present system properly identifies the areas of deficiency.
Table 4.9
2 Agree 55 45.83%
3 Neutral 28 23.33%
Total 120 100%
Graph 4.9
50
45
40
35
30
25
20
15
10
5
0
disagree
present system properly identifies the areas of deficiency
Interpretation:
It is inferred from the above table that 46% of the employees agrees that the present system
identifies the areas of deficiency and 1.67% of the employees strongly disagrees that the present system
identifies the areas of deficiency.
42
4.10. Showing the present system eliminated deficiencies identified

Table 4.10
2 Agree 67 55.83%
3 Neutral 23 19.17%
Total 120 100%
Graph 4.10
60
50
40
30
20
10
0
disagree
present system eliminates deficiencies identified
Interpretation:
It is understood that 55% of the employee agrees that the present system eliminates deficiencies
identified and 1.67% of the employee strongly agrees that the present system eliminated deficiencies.
43
4.11 showing that the level of bias appraiser affects promotion and salary decision.
Table 4.11
2 Agree 60 50.83%
3 Neutral 43 35.17%
4 Disagree 11 9.18%
Total 120 100%
Graph 4.11
60
50
40
30
20
10
0
disagree
level of bias of appraiser affects promotion and salary decision
Interpretation:
It is shown in the table that 50% of the employees agree that the level of bias the appraisal affects the
promotions and salary decision and 5% of the employee strongly agrees that the level of the bias of the
appraisal affects the promotion and salary decision
44
4.12. showing that the present appraisal system provides scope for self-education.
Table 4.12
2 Agree 63 52.83%
3 Neutral 28 23.17%
4 Disagree 9 7.18%
Total 120 100%
Graph 4.12
60
50
40
30
20
10
0
disagree
present appraisal system provides scope for self evaluation
INTERPRETATION:
From the above it is inferred that 52% of the employees agree that he present system provides scope for
self – evaluation and .83% of the employee strongly disagree that the present system provide scope for solid
evaluation
45
4.13. Showing that the present system helps in reviewing their career plans in
light of their strengths and weakness.
Table 4.13
2 Agree 63 56.67%
3 Neutral 28 20.83%
4 Disagree 9 15.00%
Total 120 100%
Graph 4.13
60
50
40
30
20
10
0
disagree
present system helps in reviewing their career plans in lights of strengths and weaknesses
INTERPRETATION:
It shows in the table that 57% of the employees agree that the present system help in
reviewing their career plan in light of their strength and weaknesses and 0.83% of
the employee strongly disagrees that the present system helps in reviewing their
career plans in the light of strength and weakness.
46
4.14. Showing that they are well informed about. Their duties and work standards.
Table 4.14
2 Agree 74 61.67%
3 Neutral 10 8.33%
4 Disagree 10 8.33%
Total 120 100%
Graph 4.14
70
60
50
40
30
20
10
0
disagree
employees are well informed about their duties and work standards
INTERPRETATION:
It is inferred from the table that 62% of the employees agree they are well informed about their
duties and work standards and 8% of the employees disagrees that they are well informed about their duties
and work standards
47
4.15. Showing whether the traits evaluated under the system is adequate.
Table 4.15
2 Agree 77 64.17%
3 Neutral 20 16.67%
Total 120 100%
Graph 4.15
70
60
50
40
30
20
10
0
disagree
traits evaluated under the system is adequate
INTERPRETATION:
It is understood from the table that 64% of the employee agrees that the traits evaluated under the
system is adequate and 0.83% of the employees disagree that the traits evaluated under the system is
adequate.
48
4.16. Showing whether the present system provides an opportunity for expressing their views and opinion.
Table 4.16
2 Agree 64 53.33%
3 Neutral 22 18.33%
Total 120 100%
Graph 4.16
60
50
40
30
20
10
0
disagree
present system provides an opportunity for expressing their views and opinions
INTERPRETATION:
From the table we can infer that 53% of the employees agree that the present system
provides an opportunity for expressing their views and opinions and 6% of the employee strongly agree
present system provides an opportunity for expressing their views and opinion.
49
4.17. Showing whether the present system identifies the training needs.
Table 4.17.
2 Agree 84 70.00%
3 Neutral 11 9.17%
4 Disagree 11 9.17%
Total 120 100%
Graph 4.17
80
70
60
50
40
30
20
10
0
disagree
present system identifies the training needs
INTERPRETATION:
It is shown in the table that 70% of the employees agree that the present system identifies
the training needs and 9% of the employees disagrees that the present system identifies the training needs.
50
4.18. Showing whether the top management is committed to the development of the employees.
Table 4.18
2 Agree 80 66.67%
3 Neutral 12 10.00%
4 Disagree 5 4.17%
Total 120 100%
Graph 4.18
80
70
60
50
40
30
20
10
0
disagree
top management is commited to the development of the employees
INTERPRETATION:
From the table it is inferred that 67% of the employee agree that the top management is committed
to the development of the employees and 4.17% of the employees disagrees that the top management is
committed to development of the employees.
51
4.19. showing whether the performance appraisal system based on objective assessment and not on
favoritism in the organization.
Table 4.19
2 Agree 65 54.17%
3 Neutral 29 24.17%
4 Disagree 6 5.00%
Total 120 100%
Graph 4.19
60
50
40
30
20
10
0
disagree
performance appraisal system is based on objective assessment and not on favouritism in the
organisation
INTERPRETATION:
From the above table we can infer that 54% of the employees agree that performance appraisal
system is based on objective assessment and not favoritism in the organization and 5% of the employees
disagrees that the performance appraisal system is based in objective assessment and not on favoritism in
the organization.
52
4.20. Showing whether team spirit is of high order in the organization.
Table 4.20
2 Agree 71 59.17%
3 Neutral 14 11.67%
Total 120 100%
team spirit is of high order in the organisation

70
60
50
40
30
20
10
0
disagree
team spirit is of high order in the organisation
INTERPRETATION:
It is understood from the table that 59% of the employees agrees that team spirit is of high order in
the organization and 11% of the employees neither agrees nor disagrees that team spirit is of high order in
the organization.
53
4.21. Showing whether the performance appraisal system provides an opportunity to employees to review
their work related behavior.
Table 4.21
2 Agree 72 60.00%
3 Neutral 26 21.67%
Total 120 100%
Graph 4.21
70
60
50
40
30
20
10
0
disagree
performance appraisal system provides an opportunity to employee to review their work related
behaviour
INTERPRETATION:
From the table it is inferred that 60% of the employees agrees that the performance appraisal system
provides an opportunity to employees to review their work related behavior and 1.67% of the employees
strongly agrees that the performance appraisal system provides an opportunity to employees to review their
work related behavior.
54
4.22. The existing working condition helps in improving performance.
Table 4.22

2 Agree 76 63.33%
3 Neutral 13 10.83%
4 Disagree 11 9.17%

Total 120 100%
Graph 4.22
70
60
50
40
30
20
10
0
disagree
the existing working condition helps in improving performance
INTERPRETATION:
It is understood from the above table that 63% of the employees agrees that the existing working
condition helps in improving performance and 1.67% of the employees strongly disagree that the existing
working condition helps in improving performance.
55
4.23. Showing whether existing performance appraisal system requires change.
Table 4.23
2 Agree 68 56.67%
3 Neutral 24 20.00%
4 Disagree 10 8.33%
Total 120 100%
Graph 4.23
60
50
40
30
20
10
0
disagree
existing performance appraisal system requires changes
INTERPRETATION:
We can infer from the table that 57% of the employees agree that the present appraisal system
requires change and 8% of the employees disagrees that the present appraisal system requires change.
56
Findings & Suggestions:

Findings:
 It is inferred that 40% of the employees are between the age group 30-40 years
 Most of the are having technical educational qualification
 33% of the employees are having 10-15 years of experience
 70% of the employees are satisfied with the effectiveness of existing performance appraisal
system
 Majority of the employees agree that the work standard set by the organization is
performable
 It is found that 43% of the employees agree that timely and adequate feedback is given to
employees and timely feedback helps in improving performance.
 62% of the employees agree that present appraisal system improves motivation of the
employees
 It is understood that 46% of the employees agree that the present system properly identifies
the areas of deficiency.
 It is found that 55% of the employees agree that the present appraisal system eliminates
deficiencies identified
 50% of the employees agree that the level of bias of appraiser affects promotion and salary
decisions
 Among the respondents 52% of the employees agree that the present appraisal system
provides scope for self-evaluation.
 Most of the employees agree that the present system helps in reviewing their career plans
in light of strengths and weaknesses
 The company informs the employees about their duties and responsibilities
 Most of the employees are satisfied with the traits evaluated under the present system
 53% of the employees agree that the present system provides an opportunity for expressing
views and opinions to the appraiser
 Majority of the employees agree that the present system identifies the raining needs
 Most of the employees ae satisfied with the top-level management’s commitment.
57
 54% of the employees agree that the present appraisal system is based on objective
assessment.
 It is inferred that59% of the employees agree that the team spirit is of high order in the
organization
 We can infer that 60% of the employees agree that the present system provides an
opportunity for them to review their work related behavior.
 The company provides the employee’s good working conditions
 22.57% of the employees agree that the present appraisal system requires change.
58
Suggestions:
Various suggestions are also given to the management for improving the existing system:
 The feedback system of the organization has to be improved. Feedback provides the
employees satisfaction that his work is meaningful
 Timely and Adequate feedback has to be given to the employees
 The area of deficiencies has to be identified and eliminated
 The stress level of managers can be reduced
 The pressure on the employees can be reduced by providing them with proper training and
development.
 The traits evaluated under the system can be modified by including some other factors by
considering employee’s opinion also.
 The appraisers have to be given proper training so that the bias can be reduced
 The pressure on the employees can be reduced
 The management should appreciate and recognize the worth of of the employees. This
calls for the commitment to listen to workers and fosters their participation in setting
criteria for performance and hence productivity
 Rewards play an important role in setting up of mptivational force in employees. Therefore
the organization must probably make more frequwnt use of rewards like giving higher
responsibilities , cash rewards, appreciation letters, etc. Rewarding good performance has
a motivational value in developing HR
59
Conclusion :
Performance Appraisal is not a ecent term but has been in the picture of human resources for ages
now. The performance appraisal is an all pervasive function and exists in all organizations.Als
performance appraisal has emerged as a tool for measurement of previous performance and
evaluating the present performance thereby improving the future performance.
Perfromance appraisal in kost organizations is done at specific periods, be it annualy or semi
annualy or regularly. The structure of the performance appraisal is solely based on the
organization’s nature, size and culture. Most organizations believe that performance appraisal
should be a continuous process as it helps assess performances, provides valuable feedback and
thereby extract better results from the employees.
The very purpose of performance appraisal is to determine the performance of the employee,
keeping the magnitude and direction of bias to the minimum. It also helps in training need analysis
and overall development of the organization. Performance Appraisal alos helps in encouraging
employees, motivating them in return of increased and enhanced performance and productivity.
It is thus an objective nad suitable way of judging the relative worth of the capabilities of an
employee in executing the assigned task.
Performance management ususlly follows a schedule i.e
 The supervisors measure the pay of employees and compare it with targets to be
achieved/achieved
 The supervisor analyses the factors behind the work performance if employees
 The employers are in the position to guide the employees for a better performance
 The annual review of an employees overall contributions to the company by his/her
managers
For performance appraisal to be effective there is alos a certain prerequisite which is job
description , that helps to allocate and measure work faster.Comapny’s take up
performance appraisal to provide to their employees continuous feedback on their work
and to justify pay increases and bonuses, as well as termination decisisons.
60
Bibliography:
61
Questionnaire:
1. The present appraisal system is effective
Strongly Agree ( ) Agree ( ) No Comments ( ) Disagree( ) Strongly Disagree ( )
2. The work standard set by the organization is preferable
3. Timely and adequate feedback is given to employees
4. Timely feedback helps in improving performance
5. The present performance appraisal system improves motivation of employees
6. The present system properly identifies areas of deficiency
7. The present system eliminates the deficiencies identified.
8. The level of Bias of appraiser affects the promotion and salary decisions
9. The present system provides scope for self-evaluation
10. The existing Performance appraisal system helps in reviewing your career plans in the light
of strengths and weaknesses.
11. Are you well informed about your duties and work standards
12. The traits evaluated under the system are adequate.
13. The present system provides an opportunity for expressing the views and opinions to the
appraiser.
14. The present system identifies the training needs
62
15. The top level management is committed to the development of the employees
16. In the organization performance appraisal system is based on objective assessment and not
on favourism
17. Team spirit is of high order in the organization
18. The performance appraisal system provides an opportunity for employees to review their
work related behavior
19. The existing working conditions help in improving the performance
20. The existing performance appraisal system requires change
21. Do you have any comments or suggestions regarding the performance appraisal system
and its conductance in this organization.?
………………………………………………………………………………………………
………………………………………………………………………………………………
63

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A STUDY ON THE IMPACT OF PERFORMANCE APPRAISAL ON SATISFACTION OF EMPLOYEES AND

ORGANIZATIONAL PRODUCTIVITY AT RUBCO LTD.

KRUPANIDHI DEGREE COLLEGE 1

Introduction to the concept:

KRUPANIDHI DEGREE COLLEGE 2

KRUPANIDHI DEGREE COLLEGE 3

KRUPANIDHI DEGREE COLLEGE 4

“RUBCO means RUBBER and RUBBER means RUBCO”

KRUPANIDHI DEGREE COLLEGE 5

KRUPANIDHI DEGREE COLLEGE 6

 Rubco Footwear hit the market

KRUPANIDHI DEGREE COLLEGE 8

KRUPANIDHI DEGREE COLLEGE 9

 VISCO ELASTIC MATRESSES

2.3.2 WORLD SCENARIO

KRUPANIDHI DEGREE COLLEGE 10

KRUPANIDHI DEGREE COLLEGE 11

Title Of the Study:

The Secondary Objectives include:

KRUPANIDHI DEGREE COLLEGE 12

KRUPANIDHI DEGREE COLLEGE 13

3. Appraisals are arranged periodically according to a definite plan.

Use of Performance Appraisal:

• Performance appraisal is useful in assessment of employee potential.

• Performance appraisal can be used to determine whether HR programmes such as selection,

Objectives of Performance Appraisal:

KRUPANIDHI DEGREE COLLEGE 14

Use appraisal data for

KRUPANIDHI DEGREE COLLEGE 15

2. Establish job expectations:

3. Design appraisal programme:

5. Use of Appraisal data:

Methods of Performance Appraisal:

KRUPANIDHI DEGREE COLLEGE 16

Traditional Methods Modern Methods

1. Graphic Rating Scales 1. Behaviourally Anchored rating Scales (BARS)

2. Ranking method 2. Assessment Centres

3. Paired Comparison Method 3. Human Resource Accounting

4. Forced distribution Method 4. Management By Objectives

5. Check list method 5. Behaviour Observation Scales (BOS)

6. Essay or Free form Appraisal 6. Psychological Appraisals

7. Group appraisal 7. Results method

8. Confidential Reports 8. Productivity Measures

1) Graphic Rating Scales:

KRUPANIDHI DEGREE COLLEGE 17

3) Paired Comparison Method:

4) Forced Distribution Method:

KRUPANIDHI DEGREE COLLEGE 18

(a) Simple Checklist Method:

KRUPANIDHI DEGREE COLLEGE 19

4. Is the employee sincere in doing his job?

(C) Forced Choice Method:

KRUPANIDHI DEGREE COLLEGE 20

6) Critical Incident Method:

7) Essay or Free From Appraisal:

KRUPANIDHI DEGREE COLLEGE 21

Assessing the employee's performance confidentially is a traditional method of performance

KRUPANIDHI DEGREE COLLEGE 22

Generally the 1VIBO is undertaken along the following lines.

KRUPANIDHI DEGREE COLLEGE 23

KRUPANIDHI DEGREE COLLEGE 24

7) Behaviour observation Scales (BOS):

The Post Appraisal Interview: