A STUDY ON THE CONCEPT OF

PERFORMANCE APPRAISAL

AT
CARE HOSPITALS
(QUALITY CARE INDIA LIMITED)

T.NANI K.G.R.L COLLEGE H/T(109275119017)

DECLARATION
I, the undersigned hereby declare that the project work entitled Performance Appraisal in Care Hospitals, written and submitted under the guidance of my guide Mr. K. Radhamanohar at Care Hospitals and my college faculty Mr B.Suresh Kumar Sir my original work. I hereby declare that this project report titled PERFORMANCE APPRAISAL EFFECTIVENESS - A CASE STUDY OF CARE HOSPITALS being submitted K.G.R.L COLLEGE OF P.G COURSES , is my own and has not been submitted anywhere before to any other university or institution partially or fully for the abound of degree/ diploma/ certificate.

Date:

T.NANI

(H.T.No: 109275119017 )

ACKNOWLEDEMENT

Behind every success lie invisible hands of so many able persons without whom this achievement would have never come into existence. I lay some words of gratitude to them. First and foremost I humbly express my gratitude to DR.GURJIT SINGH MONGA(Major), Chief Hospital Administrator and MR.COL RAJGOPAL, Chief of HR Department for giving me the opportunity to undergo my project training in CARE HOSPITALS. I would like to thank and express my sincere gratitude to my guide MR.K.RADHAMANOHAR, Manager HRD for his valuable guidance, encouragement and suggestions throughout my project work. I thank to whole staff of CARE HOSPITALS for their cooperation in the project work. Without their contribution this study would not have been completed. I extend my gratitude to Mr.M.LAXMAN RAO, Principal, Mr.V.V.V. PRASAD, Head of the Department, K.G.R.L COOLEGE P.G COURSES Mr.SURESH KUMAR Sir my internal guide for his continuous support during the project work. I specially thank My Parents and My Friends who gave me moral support in every aspect for the completion of my project successfully.

T.NANI

ABSTRACT

The CARE HOSPITALS, Nampally, Hyderabad has given me an opportunity to do the project and provided all the information. My project report is on performance appraisal. Performance appraisal is the outcome and practice of HRM and the appraisal system in the organization. Performance appraisal at this plant can be designed as the long term process and well planned. The performance appraisal is an objective as long as there is growth of the organization and employment generation. Performance appraisal is the formal systematic assessment of how well employees are performing their jobs in relation to established standards and communication of the assessment to employees. The present environment prefers a skilled employee who has creative thinking and better efforts performance and responsibilities. Some major purpose of performance appraisal is Administrative purpose Employee development purpose Program assessment purpose In this project report some modern methods are remedial measures, traditional method, ranking method and paired comparison method are used to appraise the employee according to their department and job specification. But comparatively I have found a good appraising system between the employees, employers, management and trade unions. Performance appraisal system in the CARE HOSPITALS done on yearly bases but sample size I have taken in project is for 35 employees all levels of this organization including trade union leaders. Primary data is collected questionnaires, observation personnel interview. Besides the measures taken and favor done by the organization to improve the performance appraisal system to provide interest on their job security.

CONTENTS CHAPTER NO INTRODUCTION TITLE PAGE NO

REVIEW OF LITERATURE

IV

ORGANISATIONAL PROFILE DATA ANALYSIS AND INTERPRETATION

CONCLUSIONS
1)FINDINGS 2)CONCLUSION 3)SUGGESTIONS

APPENDIX BIBILOGRAPHY

CHAPTER-I INTRODUCTION

MEANING AND DEFINITION OF THE STUDY

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 job performance. Performance here refers to the degree of accomplishment of the tasks that make up an individuals job. It indicates how will an individuals is fulfilling the job demands. Often the term is confused with effort, but performance is always measured in terms of results and efforts. DEFINITIONS: Performance Appraisal is the process of determining from how well some one is performing in his or her job it involves measuring performance and comparing it with an established standard. -JOHN PEARCE AND RICHARD ROBINSON

Performance appraisal is a method of evaluating the behavior of the employees in the work spot, normally including both the quantitative and qualitative aspects of the job performance. -V.S.P.RAO Performance appraisal is the system of evaluation of the individual with regard to his/her performance on the job and his/her potential for development.

--Dale S. Beach
Performance Appraisal is a systematic, periodic and an impartial rating of employees excellence in matter pertaining to his/her present job and his/her potential for a better job.

--Edwin B. Flippo

OBJECTIVES OF THE STUDY

The objective of the study is the survival of every organization in the market it is very essential to enhance its production and productivity. To raise the production and productivity, human resources are important factor. The efficiency of the workmen raises the production and productivity Performance Appraisal System can work as a good motivational factor to improve the efficiency of the workman.

To study the Performance Appraisal Systems for executions in CARE HOSPITALS, Hyderabad. To study the employees attitude towards Performance Appraisal System. To find out the possible errors and problems in the performance appraisal system. To evaluate the effectiveness of performance appraisal system. To suggest some suitable changes in the existing Performance Appraisal Systems To understand the system of H.R. its content tools of methodology

SCOPE OF THE STUDY

The study was intended to obtain information about: The Performance standards of an employee The quality of work in the organization since the quality of work depends on the performance of the employee. Perception among employees regarding performance appraisal.

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LIMITATIONS OF THE STUDY

The major limitation of the study is the limited time period of 40-days. It was difficult to personally interview a large number of executives and to seek their opinions on relevant issues. Sample size being small not every bodys view could be considered. Problem will be increased with the confidential information. Errors are introduced in the appraisal because of a defect or bias in the person conducting the appraisal. There is often a lack of communication whereby the employee does not know he is rated. Apart from lack of communication, sometimes communication of the rating to the employee, if not done properly, would be taken as a criticism and may even result in his performing more poorly. Often a supervisor is reluctant to give a low rating to an ineffective subordinate and gives him an average rating.

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RESEARCH METHODOLOGY:
Method of sampling:
The basic idea of sampling is that by selecting some of the elements in a population we may draw conclusion about the entire population. This has an important bearing on the collection of the reliable data of the present study is to acquire an intensive opinion about the quality of work life in CARE HOSPITALS, NAMPALLY, HYDERABAD. For this purpose a descriptive research method was followed for the present study. The study in this context has utilized available material about various aspects of HRM, data collected through well designed questionnaire by giving to the employees of CARE HOSPITALS at Hyderabad.

Sample size:
In the present study of performance appraisal in CARE HOSPITALS, 35 employees were selected randomly for sampling

Construction of tools:
The tool used for collecting the data for the study is questionnaire. A questionnaire is simple, a formulized schedule to obtain and record specified and

12

relevant information with tolerably accuracy and completeness. Data was collected through a specially designed questionnaire with 20 questions.

SOURCES OF DATA:
Collection of data is form both the primary and secondary sources Primary data: Data is collected through a well designed and approved questionnaire and also interviews Secondary data: It is collected from the records of the organization, profile booklets and from HRD Dept.

FRAMEWORK OF ANALYSIS:
For analysis and interpreting the collected data through primary data is part to statistical techniques namely, percentage analysis and graphical analysis with bar charts. It is used arriving at valid reliable conclusion.

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CHAPTER-II REVIEW OF LITERATURE

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REVIEW OF LITERATURE
1. INTRODUCTION OF HUMAN RESOURCE MANAGEMENT:
HRM is the management of employees, skills, knowledge, abilities, talents, aptitudes, creative abilities etc. Employee in HRM is treated not only as economic man but also as social and psychological man. Thus, the complete man is viewed under this approach. Employee is treated as a resource. Employees are treated as a profit centre and therefore, invert capital for HRD and future utility.

NATURE AND SCOPE OF HRs:

People in any organization manifest themselves, not only through individual sections but also through GP interactions. When individual come to work place, they come with not only technical skills, knowledge etc, but also with their personal feelings, perception, desires, motives, attributes, values etc, therefore, employee management in an organization does mean management of not only technical skills but also other factors of the human resources.

MEANING OF HRs MANAGEMENT:

Different terms are used to denote hrs management. They are labour management, labour management relations, employee, employer relations and industrial relations. Personnel Administration, Personnel Management, Human Capital

Management, Human Asset Management, and the like. Though these terms can be

15

differentiated widely, the basic nature of distinction lies in the scope or coverage and evolutionary stage. In simple sense, human resources management means employing people their resources, utilizing, maintaining and compensating their service in tune with the job and organizational requirements.

DEFINITIONS:
HRM is a process consisting of four functions, acquisition, development, motivations and maintenance of HRs Robbin & Decenzo HRM has been defined as a strategic and coherent approach to the management of an organization most valued assets the people working these, who individual and collectively contributes to the achievement of its goals Armstrong (1999)

OBJECTIVES OF HRM
The basic aims & objectives of HRM are to help the realization of the organizational goals. To ensure effective utilization of human resources. All other organizational resources will be efficiently utilized by the human resources. To ensure respect of human beings by providing various services and welfare facilities to the personnel. To ensure reconciliation of individual group goals with those of the organization in such a manner that the personnel feel a sense of commitment and loyalty towards it. To identify and satisfy the needs of individuals by offering various monetary and non-monetary rewards.

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To achieve and maintain high morale among employees in the organization by securing better human relations. To establish and maintain an adequate organizational structure of relationships among all the members of an organization by dividing of tasks with in the organization into functions, positions, and jobs, and by defining clearly the responsibility, accountability, authority for each job and its relation with other jobs in the organization. HRM tries to improve morale by providing adequate training to workers and by achieving for itself knowledge of human nature which is the totality of motives that cause human actions.

Functions of HRM:
The function of HRM can be broadly classified in to two categories. (I) (II) Managerial functions and Operative functions.

I. Managerial functions:
Managerial functions of personnel management involve planning, organizing, directing and controlling. All these functions influence the operative functions. (i)

Planning: It is a pre-determined course of action. Planning is determination of

personal is determination of personnel programmes and changes in advance that will contribute to the organizational goals.

(ii) (iii)

Organizing: An organization is a means to an end. It is essential to carry out the

determined course of action.

Directing: The next logical function after completing planning and organizing is
the execution of the plan. The basic function of personnel management at any level is motivating, commanding, leading and activating people. The willing and effective co-operation of employees for the attainment of organizational goals is possible through proper direction.

(iv)

Controlling: After planning, organizing and directing the various activities of the

personnel management, the performance is to be verified in order to know that personnel functions are performed in conformity with the plans and directions. Controlling also

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involves checking, verifying and comparing of the actual with the plans, identification of deviation if any and correcting of identified deviations.

II. Operative Functions:

The operative functions of personnel management are related to specific activities of personnel management viz., employment, development, compensation and relations. All these functions are interacted by managerial functions. Further these functional are to be performed in conjunction with management functions.

(i)

Employment: It is first operative function of Human Resources

Management. Employment is concerned with securing and employing the people possessing required kind and level of human resource necessary to achieve the organizational objectives. It covers the functions such as job analysis, human resource planning, recruitment, selection, placement, induction and internal mobility. a.

Job analysis: It is the process of study and collection of

information relating to the operations and responsibilities of a specific job. b.

Human Resource planning: It is a process for

determination and assuring that the organization will have an adequate number of qualified persons, available at proper times, performing jobs which would provide satisfaction for the individual involved. c. organization. d.

Recruitment: It is the process of searching for

prospective employees and stimulating them to apply for jobs in an

Selection: It is the process of ascertaining the

qualifications, experience, skill, knowledge etc. of an applicant with a view to a appraising his/her suitability to a job appraising.

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e.

Placement: It is the process of assigning the selected

candidate with the most suitable job in terms of job requirements. It is matching of employee specification with job requirements. f.

Induction and Orientation: Induction and orientation are

the techniques by which a new employee is rehabilitated in the changed surrounding and introduced to the practices, policies, purpose and people etc., of organization.

II. Human Resources Development: It is the process of improving,

Moulding and changing the skills, knowledge, creative ability, aptitude, attitude, values, commitment etc., based on present and future job and organizational requirements. This function includes: a. b. c. d. e. f. g. Performance Appraisal. Training. Management Development. Career Planning and Development. Internal Mobility. Transfer. Promotion.

III. Compensation:
It is the process of providing adequate, equitable and fair remuneration to the employees. It includes 1. Job evaluation. 2. Wage and salary. 3. Administration. 4. Incentives, 5. Bonus,

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6. Fringe benefits, 7. Social security measures etc.

IV. Human Relations:

Practicing various human resources polices and programmes like employment, development and compensation and interaction among employees create a sense of relationship between the individual workers and management, among workers and trade unions and management.

V. Effectiveness of Human Resources Management:

Effectiveness of various personnel and practices can be measured or evaluated by means of organizational health and human resources accounting etc. 1. Organizational Health. 2. Human Resource Accounting.

Selection Stimulation

Adaptation

Responsibility Of HRM

Evaluation

Maintenance

Motivation

Development

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HUMAN RESOURCE DEVELOPMENT:

Human Resource Development assumes significance in view of the fast changing organizational environments and need of the organization to adopt new techniques in order to respond to the environment changes.

The Concept of Human Resource Development:

The concept of HRD was formally introduced by Leonard Nadler in 1969 in a Conference organized by the American Society for Training and Development. Leonard Nadler defines HRD as, those learning experiences which are organized, for a specific time, and designed to bring about the possibility of behavioral change.

Among the Indian authors T. Venkateswara Rao worked extensively on HRD. He defined HRD in the organizational context as, a process by which the employees of an organization are helped in a continuous.

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HRD from organizational point of view is a process in which the employees of an organization are helped/motivated to acquire and develop technical, managerial and behavioral knowledge skills and abilities, and mould the value, beliefs, attitude necessary to perform present and future roles by realizing highest human potential with a view to contribute positively to the organizational, group, individual and social goals.

Functions of HRD Managers

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. Role Analysis. Human Resource Planning. Recruitment. Selection. Placement. Induction and Orientation. Performance Appraisal. Training. Management Development Career planning and Development. Organizational Development. Compensation. Social and Cultural Programmers. Workers Participation in Management. Quality Circles. Employee Counseling. Team work. Communication policies.

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19. 20. 21.

Monetary Rewards. Non-Monetary Rewards. Employee Benefits.

HRM SUB-SYSTEM

FINANC E

HRM

MR KT G
SYSTEM S

PR OD N

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1) ENVIRONMENT CHALLENGES
Rapid change Rise of the interest Globalization Workforce diversity

2) ORGANIZATIONAL DIVERSITY
Competitive position Down sizing Decentralization Restructuring Self managed work teams Small business Organizational culture Technology, Outsourcing

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3) INDIVIDUAL CHALLENGES
Job Insecurity Matching People and Organization Ethical dilemmas & Social Responsibility Productivity Empowerment and Bran drain

REVIEW OF LITERATURE
The history of Performance Appraisal is quite brief. Its in the early 20th century can be traced to Taylors pioneering Time and Motion studies. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of Second World War not more than 60 years ago. Yet in a broader sense, the practice of appraisal is a very ancient art. There is, says DULEWICZ (1989),a basic human tendency to make judgements about those one is working with, as well as about oneself. Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitrarily. The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. lawful, fair, defensible and accurate. Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified. The process was firmly linked to material outcomes. If an employee's performance was found to be less than ideal, a cut in pay Without a structured appraisal system, there is little chance of ensuring that the judgments made will be

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would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order. Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed. Pay rates were important, yes; but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence. As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time.

MODERN APPRAISAL:
Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. In many organizations - but not all - appraisal results are used, either directly or indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions. By the same token, appraisal results are used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay.)

Controversy:

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Few issues in management stir up more controversy than performance appraisal. There are many reputable sources - researchers, management commentators, and psychometricians - who have expressed doubts about the validity and reliability of the performance appraisal process. Some have even suggested that the process is so inherently flawed that it may be impossible to perfect it. At the other extreme, there are many strong advocates of performance appraisal. Some view it as potentially "... the most crucial aspect of organizational life" - LAWRIE (1990)

Link to Rewards:
Research (BANNISTOR & BALKIN, 1990) has reported that appraises seem to have greater acceptance of the appraisal process, and feel more satisfied with it, when the process is directly linked to rewards. Such findings are a serious challenge to those who feel that appraisal results and reward outcomes must be strictly isolated from each other. There is also a group who argues that the evaluation of employees for reward purposes, and frank communication with them about their performance, are part of the basic responsibilities of management. The practice of not discussing reward issues while appraising performance is, say critics, based on inconsistent and muddled ideas motivation.

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INTRODUCTION OF PERFORMANCE APPRAISAL

DEFINITIONS:
Performance Appraisal is the process of determining from how well some one is performing in his or her job it involves measuring performance and comparing it with an established standard. -JOHN PEARCE AND RICHARD ROBINSON Performance appraisal is a method of evaluating the behavior of the employees in the work spot, normally including both the quantitative and qualitative aspects of the job performance. -V.S.P.RAO

A FORMAL DEFINITION OF PERFORMANCE APPRAISAL:

The performance appraisal is the process of evaluating the performance and qualification of the employees in terms of the requirements of the job for which he is employed, for the purpose of administration including placement, selection for promotion, providing financial rewards and other action which require differential

28

treatment among the members of group as distinguished from actions affecting all members equally.

MEANING OF PERFORMANCE APPRAISAL:

Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance. Performance here refers to the degree of accomplishment of the tasks that make up an individuals job. It indicates how will an individuals is fulfilling the job demands. Often the term is confused with effort, but performance is always measured in terms of results and efforts.

PURPOSES OF PERFORMANCE APPRAISAL:

Performance appraisal aims at attaining the different purposes. They are: To create and maintain a satisfactory level of performance. To contribute to the employee growth and development through training, self and management development programes. To help the superiors to have a proper understanding about their subordinates. To guide the job changes with the help to continuous ranking. To facilitate fair and equitable compensation based on performance. To provide information for making decisions regarding lay off, retrenchment etc.

SCOPE OF PERFORMANCE APPRAISAL:

The world today is a world of revolutionary changes. We are on the edge of 21st century. It gives us a chance to scan the 20th century and foresee the 21st.In the next few years the world will be witnessing a mega transformation of global

29

economy. India has also been affected by this change. New challenges in various fields are being accepted. Innovation in the true sense is to be perceived and understood. In the 19th century it was the industrial revolution, which promised India a better future, but now it is the role of the information technology, which decides the future. The stride in industrialization in the 20th century has been a remarkable future with various changes in the working and managing styles of the industries. The advent of the information technology along with the rapid industrialization in India demands a highly motivated, educated, skilled and goal oriented work force. Performance has become the watchword in todays industrial scene.

OBJECTIVES OF PERFORMANCE APPRAISAL:

The objective of performance appraisal scheme must relate directly to the business and growth needs of units of organization as a whole. The following are some impotent objectives of an appraisal scheme: Providing information for succession and resource planning. Providing a base for improved commutation between boss and subordinates. Identifying and recording performance weaknesses. Providing a basis for analysis of performance and identifying the required standards and improvement. Identifying potential. Mutual feedback between boss and subordinate.

COMPONENTS OF APPRAISAL EVALUATION

A performance appraisal evaluation may be conducted in an organization due to many reasons such as Counseling

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Promotion Research Salary Administration

So it is very necessary to being by stating very clearly the objectives of the evaluation program. Having done this, the personnel evaluation system should address the questions who, what, where, how, of performance appraisal.

WHO OF THE APPRAISAL?

The appraisal can be accomplished by one or more individuals involving a combination of immediate supervisor, other managers acquainted with assesses work, a higher level manager, a personnel manager, the assesses peers, the assesses himself and the assesses sub ordinates. Sometimes self evaluation is also employed for evaluating performance. Self rating emphasizes human relations, while superiors focus on technical knowledge and initiative. But this approach had its disadvantages i.e., the individual may rate himself excessively high that it would be if I his superior rated him. Because of this fairly consistent upward bias in self-appraisals, the best thing would be to use these appraisals for counseling and developing sub ordinates. They are not useful for making salary and promotion decisions. Many companies use rating committees to evaluate employees. These committees consist of supervisors, peers and subordinates. Everyone on the committee is a person who is able to intelligently evaluate some aspect of the employees performance. Many discrepancies in the ratings may occur when evaluations are by individuals.

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WHAT OF THE APPRAISAL ?

The what of the performance appraisal, consist in appraising non-supervisory employees for their current performance and the managers of future potential and it also includes evaluation of human traits.

WHY OF THE APPRAISL?

The why of an appraisal is concerned with? Creating and maintaining a satisfactory level of performance of employees in their present job. Highlighting employee needs and opportunities for personal growth and development. Aiding in decision making for promotions, transfers, lay offs and discharges. Promoting understanding between the supervisor and the subordinates. Providing useful criteria for determining the validity of selection and training methods and techniques and forming, concrete measures for attracting individuals of higher caliber to the enterprise.

WHEN OF THE APPRAISAL?

The when answer the query of appraisal? It has been suggested that formal counseling should occur continuously. The manager should discuss and employees work as soon as possible after he has judged it. He should use good work to provide positive reinforcement and use poor work as a basis for training. In most organization employees are formally evaluated once a year, in others twice a year. New employees are rated more frequently than the older ones. The ideal thing is that each employees should be rated three months there after being assigned to a job, after six months on the job and every six months there after. The time pf rating should not coincide with the time salary reviews, for if the two occur together constructive evaluation and consideration of self-development will probably take second place to the pressures of pay.

WHERE OF THE APPRAISAL?

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The where indicates the location where an employee may be evaluated? It is usually done at the place of work of office of the supervisor. Informal appraisal may take place anywhere and everywhere, both on the job in work situations and off the job.

HOW OF THE APPRAISAL

Under how, the company must decide what different methods are available and which of these may use for performance appraisal. On the basis of the comparative advantages, and disadvantages it is decided which method would suit purpose best.

PROCESS OF PERFORMANCE APPRAISAL

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I Creating performance standards

II Communicatin g the performance standards

VI Taking corrective action

III Measuring actual performance

V Communicatin g the appraisal

IV Comparing actual and standard performance

METHODS OF PERFORMANCE APPRAISAL

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TRADITIONAL METHODS
1. Graphic Rating Scale 2. Ranking Method 3. Paired Comparison Method 4. Forced Distribution Method 5. Check List Method Simple Checklist Weighted checklist Critical Incident Method Forced choice method 6. Essay/ Free form Appraisal 7. Group Appraisal 8. Confidential Reports

MODERN METHODS
1. Behaviorally Anchored Rating Scales 2. Assessment Center 3. Human Resource Accounting 4. Management by Objectives 5. Psychological Appraisals 6.3600 APPRAISAL

TRADITIONAL METHODS
1) Graphical rating scale:

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Graphic Rating Scales compare individual performances 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 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 scale. Rating scales are of two types, viz., continuous rating scale and discontinuous rating scale. In continuous order like 0, 1, 2, 3, 4&5 and in discontinuous scale the appraiser assigns the points to each degree. The points given by the rater know performances regarding each character are added up to find out the overall performance. Employees are ranked 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 incase of administration. They can easily pin point significant dimensions of the job. The major drawback to these scales is subjectivity and low reliability. Another limitation is that the descriptive words often used in such scales 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 employees with the highest performance and the employees with the lowest performance in that particular job category and rates the former as the best and latter 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 relativity and validity may be open to doubt it may be affected by rater bias or varying performance standards. Ranking also means that somebody would also be in the back bench. It is possible that the low ranked individual in one group will turn out to be superstar in another group.

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One important limitation of the ranking method is that the size of the difference between individuals is not well defined. For instance, there may be little difference in performance between individuals ranked second and third, but big difference between those ranked third and fourth. Column I (Best) 1) . . . . . . . . . . . . . . . . 2) . . . . . . . . . . . . . . . . 3) . . . . . . . . . . . . . . . . 4) . . . . . . . . . . . . . . . . 5) . . . . . . . . . . . . . . . .

Column II (Worst) 6) . . . . . . . . . . . . . . . . 7) . . . . . . . . . . . . 8) . . . . . . . . . . . . . . 9) . . . . . . . . . . . . . . 10) . . . . . . . . . . . . . .

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

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at a time. This method results in each employee being given a positive comparison total and a certain percentage of total positive evaluation. Paired comparison doesnt force distribution of employees in each department. For instance, if a department has two outstanding employees and six average employees and paired comparison is correctly utilized, then those two employees will get a much higher percentage of positive comparison than the other six. Paired comparison method could be employed fairly, easily when the number of employees is less. The number of comparisons required equals N (N-1)/2.This means that where the number is fairly large the technique may be time consuming. Another limitation of this technique is that employees are simply compared to each other on total performance rather than specific job criteria.

A A B C E -

B A -

C A C -

D A D C -

E A E E E -

D -

To compute employees positive evaluations: Number of positive evaluations x 100 = employees % superior evaluation. Total number of evaluations Employee A 4/4 x100=100% Employee B 0/4x100=0% Employee C 2/4x100=50% Employee D 1/4x100=25% Employee E 3/4x100=75%

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

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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 to spread their employee evaluations 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 of individual performance. This method is based on the rather questionable assumption that all groups 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 rater must explain to the employee why he was placed in one grouping and others were placed in one grouping and others were placed in higher groupings.

5) Checklist Methods:The checklist is a rating technique in which the supervisor is given a list of statements or words 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.

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I) Simple Checklist Method:

The checklist consists of large number of statements concerning employee behavior. The rater checks to indicate if the behavior of employees 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.

II) Weighted checklist method:

This method involves weighting different items in the checklist, having a series of statements about an individual, to indicate that some or more important than others. The rater is expected to look into the questions relating to the employees behavior, the attached rating scale 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 the coefficients are added up. The cumulative co-efficient 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, 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 developmental, it has the basic problem of the evaluator not knowing the items which contribute mostly of successful performance.

III) 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 concerning employee behavior. Two statements are most

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descriptive and two are least descriptive of each tetrad. Sometimes there may be five statements in each group out of which one would be neutral. The actual weightages of the statements are kept secret. The appraiser is asked to select one statement that mostly describes employees behavior out of the two favorable statements and one statement from the two unfavorable statements. The items are usually a mixture of positive and negative statements. The intent is to eliminate or greatly reduce the raters 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.

IV) 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 just two or three weeks before the appraisal. Hence a continuous appraisal method, i.e., critical incident method has been developed. Under this method, supervisor continuously records the critical incidents of the employee performance or behavior relating to all characteristics in a specially designed note book. 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, for example, mood, emotional balance, relationship between superior and subordinate. This certainly helps in reducing bias in the evaluation. However, the system is not without drawbacks. First, what constitutes a critical incident is not defined in the same manner by all raters. Next, recording events continually over a period of time may be resented by the raters.

6) Essay / Free Appraisal:-

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This method requires the manager to write a short essay describing each employees performance during the rating period. This format emphasizes evaluation of overall performance, based on strengths/weaknesses 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. The time involved in writing separate essays about each employee can be formidable. Essays are not amenable for evaluation and analysis; 50 essays describing different employees performance cannot be tied to merit increases and promotion possibilities because there is no common standard. Another inherent limitation of this method is that the evaluators may have unequal skills in writing the essays. A skillful writer can present a more dramatic case about an employee than an awkward writer or supervisor. Thus, the quality of the ratings depends, actually on employee performance, but on the writing ability of the rater.

7) Group Appraisal:Under this method, an employee is appraised by group of appraisers. This group consists of the immediate supervisor of the employee, to other supervisors who have close contact with the employees 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 enlightens other members about the job characters, demands, standards of performance etc. This method is widely used for purposes of promotion, demotion and retrenchment appraisal.

8) Confidential Reports:Assessing the employees performance confidentially is a traditional method of performance appraisal. Under this method, superior appraises the performance of

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his subordinates based on his observations, judgment and intuitions. The superior keeps his judgment and report confidentially. In other words the superior does not allow the employee to know the report and his performance. Superior writes the report about his subordinates strength, weaknesses, 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 employees performance. This method suffers from a number of limitations.

MODERN METHODS
1) Behaviorally Anchored Rating Scales (BARS):-

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The behaviorally anchored rating method (BARS) method combines elements of the traditional rating scales and critical incidents methods. Using BARS, job behaviours from critical incident- effective and ineffective behaviours 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 behaviours for each of the components.

How to construct BARS?

Developing a BARS follow a general format which combines techniques employed in the critical incident method and weighted checklist ratings scales. Emphasis is pinpointed on pooling the thinking of people who will use the scales as both evaluators and evaluees. Step I: Collect Critical Incidents: People with knowledge of the job to be probed, such as job holders and supervisors, describe specific examples of effective and ineffective behaviour related to job performance. Step II: Identify Performance Dimensions: The people assigned the task of developing the instrument cluster the incidents into a small set of key performance dimensions. Generally between five and ten dimensions account for most of the performance. Examples of performance dimensions include technical competence, relationships with customer handling or paperwork, and meeting day to day deadlines. While developing varying levels of performance for each dimension, specific examples of behaviour should be used, this could later be scaled in terms of good, average or below average performance. Step III: Reclassification of Incidents: Another group of participation who are knowledgeable about the job instructed to retranslate or reclassify the critical incidents generated previously. They are given the definition of job dimension and told to assign each critical incident to the dimension that it best describes. Step IV: Assigning Scale Values To The Incidents: Each incident is then rated on a one to nine scale with respect to have well it represents performance on appropriate dimension. A rating of one represents ineffective performance; the top scale value indicates very effective performance. The second group of participants usually assigns the scale values. Means and standards deviations are then calculated

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for the scale values assigned to each incident. Typically incidents that have standard deviations of 1.50 or less are retained. Step V: Producing the Final Instruments: About six or seven incidents for each performance dimension all having met both the retranslation and standard deviation criteria will be used as behavioural anchors. The final BARS instrument consists of a series of vertical scales anchored by the final incidents. Each incident is positioned on the scale according to it mean value. Because the above process typically requires considerable employee participation, its acceptance by both supervisors and their subordinate 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 identifies observable and measurable behavior, it is more reliable and valid method for performance appraisal. Researchers, after surveying several studies on BARS, concluded that despite the initiative appeal of BARS, findings from research have not been encouraging. It has not proved to be superior to other methods in overcoming rater errors or in achieving psychometric soundness. A specific deficiency is that the behaviors used are actively oriented rather than result oriented. This creates a potential problem for supervisor doing the evaluation, who may be forced to deal with the employees who are performing the activity but not accomplishing the desired goals. Further, it is time consuming and extensive to create BARS.

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 of several individuals is done by various experts by using various techniques. In this approach individuals from various departments are brought together to spend two or three days working on individual or group assignment similar to the ones they would be handling when promoted. Observers rank the performance of each and every participant in order of merit. Since assessment centers are meant for

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evaluating the potential of candidates to be considered for promotion, training or development, they offer an excellent means for conducting evaluation process in an objective way. All assesses get an opportunity to show their talents and capabilities and secure promotion based on merit. Since evaluators know the position requirements intimately and are trained to perform the evaluation process in an objective manner, the performance ratings may find favor with majority of the employees. A considerable amount of research evidence is available to support the contention that people chosen by this method through better than those chosen by other methods.

3) Human Resource Accounting:It deals with cost and contribution of human resources to organization. Cost of the employee includes cost of man power planning, recruitment, selection, induction, placement, training, development, etc. Employee contribution is the money value of the employee service which can be measured by labour productivity or value added by human resources. Cost of human resources can be taken as standard. Employee performance can be measured in terms of employee contribution to the organization. Employee performance can be taken as positive when contribution is more than the cost and performance can be viewed as negative if cost is more than contribution. Positive performance can be measured in terms of percentage of excess of employee contribution over the cost of employee. Similarly, negative performance can be measured in terms of percentage of deficit in employee contribution over the cost of employee. This % can be ranked to zero level. This technique has not developed and still it is in transition stage.

4) Management By Objectives(MOB):-

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This method is given by Peter Drucker, establishes results which workers or managers expected, by mutual agreement with their supervisors, to achieve during a particular period of time. Ideally, MBO takes into account the needs and goals of the organization, as well as those of the individual. Four steps depict the method: Setting performance goals or targets. Recording performance against goals. Counseling on progress against goals. Reviewing final results against goals.

5) Psychological appraisal:
Psychological appraisals are conducted to assess the employee potential. Psychological appraisals consists of (a)in-depth interviews,(b)psychological tests (c)consultants and discussions with the employee,(d)discussions with the superiors, sub-ordinates and peers, and (e)review of other evaluations. Evaluation is conducted in the areas of (a)employees intellectual abilities, (b)emotional stability, (c)motivational responses, (d)reasoning and analytical abilities, (e)interpretation and judgment skills, (f)sociability, (g)employees ability to comprehend the events and ability to foresee the future. The psychological appraisals results are useful for decision-making about (1) employee placement (2) career planning and development, and (3) training and development.

6) 360O FEEDBACK: SUPERVISORS:

Supervisors include superiors of the employee, other superiors having knowledge about the work of the employee and department head or manager. General practice is that immediate superiors appraise the performance which in turn is reviewed by the departmental head / manager. This is because supervisors are responsible for managing their subordinates and they have the opportunity to

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observe, direct and control the subordinate continuously. Moreover, they are accountable for the successful performance of their subordinates.

PEERS:
Peer appraisal may be responsible if the work group is stable over a reasonably long period of time and performs tasks that require interaction. However, little research has been conducted to determine how peers establish standards for evaluating others or the overall effect of peer appraisal on the groups attitude.

SUBORBINATES:
The concept of having superiors rated by subordinates is being used in most organizations today, especially in developed countries. Such a novel method can be useful in other organizational settings too provided the relationships between and subordinates are cordial. Subordinates ratings in such cases can be quite useful in identifying competent superiors.

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If individuals understand the objectives they are expected to achieve and the standards by which they are to be evaluated, they are to a great extent in the best position to appraise their own performance. Also, since employee development means self development, employees who appraise their own performance may become highly motivated. The way in identifying key practices that make for a successful system such as accountability, review by superiors, periodic feedback, and having a flexible

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system. Preliminary research on the use of multiple raters in a 360o feedback system appears to be superior in comparison to the traditional methods of performance appraisal which relied almost exclusively on the employees supervisor. The 360o system uses not only supervisor but also peers, self rating by the employee, subordinates and in some instances customers or clients, outside consultants and even family and friends. In a sense the system draws on virtually anyone who has familiarity with the employee in regards to his or her job performance. This multi-rater are reliable, valid, well-received by employees, easy to use and job relevant. Although these data are encouraging, there is still little empirical data about 360 degree feedbacks effectiveness, making it a prime candidate for additional studies. It is found through a meta-analytic study that each of the various rater training programs has at least a moderate effect on improving performance appraisal ratings, reducing rating errors and/ or improving rating accuracy. Of the training programs, framed-of-reference (FOR) training emerges as the most promising. The methodology of calibrating raters so they agree on what behaviors and characteristics comprise effective performance in FOR. It also provides raters with common performance standard (references) such that each rater understands what constitutes good and bad performance on each relevant job dimension. It provides further guidelines to enhance greater accuracy across dimensions.

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CHAPTER-III ORGANISATION UNDER STUDY (AN OVERVIEW)

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1. PROFILE OF CARE HOSPITALS

Care foundation is a registered non profit society with the mandate of making quality health care affordable and accessible to all through appropriate use of technology. The foundation has been established by a group of medical scientists and technologies with the stated mission of making advanced comprehensive healthcare affordable and accessible to all. The foundation is a non- profit organization and is registered as a society under Andhra Pradesh Society Act 1365 Falsie.

The patron of the foundation is renowned cardiologist Padmashri Dr B.SomaRaju and the chairman of the foundation is Prof.P.krishnam Raju. The foundation implements its mission of making advanced technology based care affordable and accessible to common man under a three dimensional programme. Conducting research & imparting specialized education, Developing cost effective medical products, and Providing health care to people from the economically weaker sections of

the society and those living in rural areas.

In 1997, when Dr.B.Soma Raju and Dr.D.Prasada Rao led a team of medical professionals to set up the first CARE Hospital, it signaled the dawn of a new era in medical care .At the heart of this movement was a burning desire to practice medicine with compassion, concern and care, with a single minded objective the recovery of the patient. Today, with Multi-Specialty Hospital across the state, and a reputation for

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humanization and selfless service of the highest order, CARE Hospital enjoys an unbelievable amount of goodwill. A million smiles will bear testimony to that.

The organization was incorporated with the main objective of running all kinds of hospitals, dispensaries ,nursing homes, clinical laboratories carrying out medical research, education and train medical students ,nursing professionals, hospital administrator, grant diplomas or recognitions as the company may deem fit and to render professional consultancy and advice to any individual firm, company, Govt etc. in the fields of research and development relating to medical, pharmaceutical and chemical industries.

BOARD OF DIRECTORS

Dr. B. Soma Raju, Chairman and Managing Director Dr. N. Krishna Reddy, Chief Executive Officer Mr. D. Suresh Dr. A. Rajgopala Raju, Whole-time Director Mr. C. Rama Krishna Mr. Rajeev Amrish Agarwal Mr. John Michael Lind Dr. G.N.Rao, Director

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COMPANY SECRETARY

Mr. N.Anjaneyulu

VISIONARIES
1. Dr. B. Soma Raju Chairman & Managing Director Sri Dr B Soma Raju, MD, DM in Cardiology and renowned cardiologist in India and Abroad. He headed the department of Cardiology at NIMS during which time he brought modern Cardiac care into the country. He developed indigenous stent along with Dr. Abdul Kalam, President of India (Named Kalam-Raju Stent) He was honored by Government of India with Padmashree Award towards his outstanding contribution in the field of Medicine in the year 2001. He is the Chairman & Managing Director of QCIL

2. Dr. N. Krishna Reddy Director& CEO MD Internal Medicine from PGIMER, Chandigarh. DM-Cardiology from GB Pant Hospital, New Delhi. and Asst. Professor at NIMS introduced Tran esophageal echocardiography Dobutamine Echocardiography. A key team member in development & evaluation of indigenous coronary

stents, beginning with Kalam-Raju stent. A principal investigator for 5 ongoing National Trials The team leader for ongoing development of drug-eluding stents.

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He is a Consultant Cardiologist and the Director & Chief Executive Officer of QCIL

GROWTH
The care foundation was established with the noble objective of providing needed research in cardiology, to achieve indigenization of the fast growing range of hard ware products, devices and disposables in the field to provide excellent academics at different levels and to strive to bring down the ever bargaining cost of cardiac health care under the able leadership of its founder, chairman DR.B.SOMA RAJU. The care foundation has relentlessly pursued those objectives and can now look back with some satisfaction on the work done towards this end in the first few years of its experience. Quality Care India Limited (QCIL) was an inevitable off shoot of the zeal to achieve the above mentioned objective. And it has the purpose of giving a practical shape to this pursuit. The care hospital Nampally, Hyderabad is the first of the project of Quality Care India limited established in July 1997 in leased premises ,the Hospital needs little to be said in its praise as the direction it has then and its achievements are now very well known, the immense credibility it has established is just a reflection of this. DR.B.SOMA RAJU is himself, the chairman of Quality Cares India limited and the care hospital and DR.B.PRASAD RAO, the vice chairman, the governing board of the hospital has Dr .B. Soma Raju, and Mr. D. Suresh as its directors. The care hospitals stated with 200 beds .It has never shrinked from its responsibility of looking after the economically deprived sections of the population. It is to the credit of the hospital that nearly 20% of accommodation is allocated under general ward category where the tariffs are highly subsidized.

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The hospital has so far been an exclusive cardiac care hospital with few supporting departments such as internal medicine and Pulmonology; it has on its panel specialists from all the branches who visit on call. The hospital runs on extremely busy intensive coronary care unit attending to all cardiac emergencies .The unit is staffed with an in house cardiologist around the clock, supported by junior doctors, an anesthetist, a large number of technicians and nursing staff and others. Laboratory services are available continuously. Emergency services such as primary angioplasty for a person with developing heart attack are performed at all times of day or night. Care hospitals felt the need to introduce other specialties that could serve the population with the same professional competence and commitment as cardiac team with this in view neurology and other neurology services were being started at CARE NAMPALLY from October 2000.PROF J.M.K MURTHY who is a well known neurologist and acclaimed expert on seizure disorders is heading the neurology unit. Continuing on the path to achieve the objective the group has established a super specialty hospital at BANJARA HILLS, HYDERABAD. This has brought under one roof highly qualified, competent and dedicated professionals who would provide the care and service to people. CARE foundation started a research and development institution, cardio vascular devices and disposables to develop cardiac devices and disposables.

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THE CARE MODEL

They operate on physician driven model. This means that all the main

constituents of the CARE movement ,the promoters, administrators and service providers are physician .The center of the CARE model is the patient and the overriding motive of all cares activities is to provide quality medical care at an affordable cost. Technology training and team work from the every core of the CARE model which also emphasizes a comprehensive and continuous education and training of every individual involved in the patient care. Every effort will be taken to ensure that their growth is decided by the patients needs and not one decided by their corporate requirements.

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ABOUT CARE LOGO

The base of the logo represents a level field provided to everybody. The column consisting of beam represents the multi-disciplinary teams of CARE Hospitals.

The person on the pedestal is a professional like a physician/nurse/health care professional supported by excellence.

The person trying to climb the apex of the pedestal is a patient suffering from illness or a student seeking knowledge and skills.

The rectangular box refers to a well-defined framework within which the hospital functions.

FUNDAMENTAL REASON FOR EXISTENCE

To make quality medical care affordable and accessible considering quality, cost, access. Timeless unchanging core values. Putting the patient first above ones own interest.

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CORE PRINCIPLE
Putting the patient first; above our own interests.

MISSION
To provide the best and cost-effective care, accessible to every patient through integrated clinical practice, education and research. To evolve as a unique university-based health-centre where the quest for new knowledge would continuously yield more effective and more compassionate care for all. To nurture a new generation of professionals of life-long commitment, dedication, knowledge, skills, wisdom and values. To strive for public trust and maintain medicines humane and noble place amongst professions. To be globally competitive in healthcare and related businesses integrating local culture and ethos.

VISION

MISSION
The mission is more than just a statement; its the cornerstone of all efforts. And, of course a constant reminder of their movements founding values. To provide quality medical care at an affordable price, delivered with compassion, concern and care, through team spirit, training and technology. To develop a comprehensive healthcare delivery model that suits their population. To develop centers of excellence in various medical specialties.

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To evolve a holistic approach to healthcare by incorporating the best from various forms of medicine.

VISION
To evolve as a unique university-based health-centre where the quest for new knowledge would continuously yield more effective and more compassionate care for all.

To nurture a new generation of professionals of long life commitment, dedication, knowledge, skills, wisdom and values.

To strive for public trust and maintain medicines humane and noble place amongst professions.

To be globally competitive in healthcare and related businesses integrating local culture and ethos.

To promote development of indigenous products and systems, adapting appropriate technologies generating clinical skills and removing barriers before patients accessing it through institutional partnership.

OBJECTIVES
Upgrade its education and Research wing on par with the international standards and consequently develop healthcare solutions for under developed and developing areas. Register a phenomenal growth by adding 5000 beds in the next five years. Offer unique platform to various partners and collaborators, both national and international, to innovate in healthcare delivery systems, coverage systems like

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microfinance/ micro insurance, medical education and research. Develop healthcare solutions for underdeveloped and developing countries. To develop comprehensive healthcare delivery model that suits our population. To develop centers of excellence in medical specialties. To compromise the obsolete and seek excellence through effective and up-todate technology and service. Undertake clinical practice through high-end education and research. Create a web of PCD clinics, corporate health plans, and associates program to leverage the use of technology and gain access to remote areas.

POLICIES
Sensitivity to pain and suffering shall be accorded highest priority to every employee. Same treatment for same illness, irrespective of ability to pay. Tests will be done only when medically necessary Selection of all employees shall be on the basis of merit. Compulsory continuous medical education to lab health care personnel. All departments shall be run by full time consultants. Round the clock availability of cardiologists, C.T. Surgeons neurologists, anesthetists, labs and technicians.

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VALUES AND PRINCIPLES

VALUES
Practice Education Research Mutual Respect Commitment to Quality Work Atmosphere Societal Commitment Finances Practice medicine as an integrated team of compassionate, physicians, scientists and allied health professionals. Learn to serve through training and education of physicians, nurses and allied health professionals. Conduct basic and clinical research programs to improve patient care and to benefit society. Treat everyone with respect and dignity. Continuously improve all processes that support patient care, education and research. Foster teamwork, personal responsibility, integrity, innovation, trust and communication, and celebrate success. Support the society we live in and assist patients with limited financial resources. Allocate resources within the context of a system rather than its individual entities.

MILESTONES
CARE Hospital, the Heart Institute established at Hyderabad-200 beds July 1997. 50 bed cardiac centre established in secunderabad June 1998. 100 bed Heart Institute set up in Vishakapatnam -April 1999. CARE foundation got defense technology spin-off award from Prime Minister-August 1999. The Institute of Neuro-Sciences set up in Hyderabad-October 2000. The Institute of Medical Sciences with Multi-specialty services with 350 beds at Banjara Hills (Hyderabad)-October 2000.

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Padmashri awarded to Dr.B.Soma Raju and DR.D.Prasada Rao, the founders of CAREJanuary 2001.

Bharat Ratna, Dr.APJ Abdul Kalam, inducted onto the board May 2001. Indias first V-SAT based publicprivate Telemedicine system launched by chief minister of AP-October 2001.

Established

`a Community Model Hospital at Amalapuram-Jan 2002.

Established a Primary Health Care Model Hospital at Lakhavaram-March 2002. Established a 50 bedded Hospital at Vijayawada-Dec 2003.

CULTURE OF CARE
The best interest of their patient is the only interest they consider. They at CARE, combine an emphasis on the pure science of medicine with a keen appreciation for each persons humanity. Their caring staff, advanced medical care, accessibility and efficiency is what make them different from others the preferred choice of the international patient .Every employee devotes the necessary attention to ensure that every patients visit to CARE is convenient and worthwhile. The culture at CARE bears testimony to the fact that: They are dedicated to the needs of their patients .They serve with a special attitude, special care so that all patients gain the maximum benefit from their visit to CARE.

It uses a collaborative approach where each physician can call on the expertise of medical specialists and sub specialists. This team work helps physicians arrive at an accurate diagnosis and the most effective course of treatment. Each patient benefits from the experience and skills of many physicians. CARE continues to offer superior

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value with an efficient, streamlined approach to medical care that emphasizes accurate diagnosis and effective treatments. It is patient centered organization and focus on one thing-the needs of the patient. The needs of the patient come first. It provides the best care to every patient through integrated clinical practice, education and research. Comprehensive evaluation with timely, efficient assessment and treatment. Availability of the most advanced, innovative diagnostic and therapeutic technology and techniques. The CARE organization recognizes the importance of good communication with the patients personal doctor. Upon the patients return home, CARE physicians send all pertinent medical information to the home doctor to assist in continued good care. It functions cooperatively to bring skilled, compassionate care to patients from around the world.

MEDICAL SPECIALITIES IN CARE

SURGICAL
Cardio-Thoracic Dental ENT General, Gastrointestinal and Laparoscopic Gynecology Hand Surgery Neuro Surgery Surgical Oncology Ophthalmology

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 Orthopedic Surgery & Trauma Services

Urology Vascular Surgery

MEDICAL
Anesthesia Blood Bank Cardiology Dermatology Endocrinology Gastroenterology Internal Medicine / Coronary & Critical Care Life Style Clinic Nephrology Neurology Oncology Physiotherapy Psychiatry

DIAGNOSTICS
Cardiology Gastroenterology Neurology Nuclear Medicine Radiology (Image logy)

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ORGANISATION STRUCTURE

PATIENT Doctors and Nurses

Paramedics and House keepers Departmental Manager Support Manager Directors

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In structure, we see patients, are at high priority, at quality care the main criteria is putting the patient first above ones own interest. They are treated as Elite Group of the organization.

The next preference is given to doctors and nurses; they are the people who give emotional support and satisfaction to the patients. The more comfort they give the more satisfied is the patient, here the nurses play a very important and vital role, they look after every aspect of the patient starting with their food to their medicines, for this they have to be very patient, humble and pleasing.

The next comes Paramedics and House keeping, the more cleanliness the more attractive the hospital, so the housekeeping people play a crucial role in attracting the people to opt the hospital. Pharmacist is the one who delivers the prescribed medicines given by the physician, the more pro active they are the more willingness to buy the medicines from within the premises. Next comes the Departmental manager, who looks after the departments, its functions and the procedures to be followed. He is the person who is responsible for all activities to be carried for attaining the objectives.

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ORGANIZATIONAL HIERARCHY

CHAIRMAN
VICE CHAIRMAN BOARD OF DIRECTORS HOSPITAL ADMINISTRATOR GENERAL MANAGER DEPUTY GENERAL MANAGER MANAGER

ASSISTANT MANAGER SUPERVISOR REGULAR STAFF

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ASSISTANT MANAGER

HR-CAREER PROGRESSION AT CARE HOSPITALS

Ca
ORGANIZATION POLICIES
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MANPOWER REQUIREMENT:
To take specification for Job requirement in the prescribed format for all jobs opening in the Organization. All the vacancies are displayed in the notice board for employees to apply. The same is to facilitate equal opportunities for employees of Organization. All openings are intimated to employment exchange. All vacancies arise, either due to resignations or new openings, first option is given to existing employees in the Organization and they will undergo for selection based on their job opening. To competence requirement for all positions in the Organization the GM-HR should consult with the HODS

SELECTION AND RECRUITMENT:

The vacancies are identified in each Department and selection is made with the profile of the person needed for filling the vacancy. The first option is given to the existing employees. For all openings, the HR Department personnel conduct preliminary interview and the ratings are given. Whenever fresher are recruited for job opening, selection process includes, written test, wherein candidate is required to score 60% marks for further Interviews and Selections. Short listed persons are called for Interviews by the Hospital Administrator for suitable place and date.

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INDUCTION/ORIENTATION:
Introduce the employee to the staff. Explain him the Organization History, Hierarchy, Grade structure Appraise him the rules and regulations of the organization Put him under training in Departments to understand the role of each Department where he/she is going to work. Maintain induction training record.

PERFORMANCE APPRAISAL:
The performance Appraisal is carried out once every year for all associates and after the completion of one year for new recruits. Trainees will be assessed of their performance after completion of 3/6 months. After their potential appraisal they are recommended for promotion.

TRAINING:
At least 20 managers undergo Management development training in a year. To maintain record related to competence, education, awareness, and training for all associates. Induction, training is given for newly recruited personnel. On the job training is given to all staff depending upon recruitment.

FEED BACK:
After returning from the training the effectiveness of training is verified by the HOD and forwarded to General Manager-HR for perusal of Manager.

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PERFORMANCE APPRAISAL SYSTEM IN CARE HOSPITALS

1. Purpose
To lay down policy guidelines for implementation of the Performance Management System.

2. Scope
This policy will be applicable to all associates of Care except trainees, apprentices and contract staff.

3. Responsibility
3.1 All HODs are responsible to ensure that the appraisals are completed on time. 3.2 HR Department will facilitate and monitor the process. The HR Department will also acquaint the HODs/appraiser/ appraises about the Performance Management System.

4. Accountability
The Unit HR in charge under the overall supervision of the HA will be accountable for the appropriate implementation of the Performance Management System in the unit while the CHRD will responsible for its implementation at the Corporate and for associates at the senior and middle levels of management. Queries on matter of policy will be referred to Corporate HR for clarification.

5. Procedure
5.1} Performance management is a method used to measure and improve effectiveness of associates at the work place. It is a system composed of several activities including goal setting, tracking changes, coaching, motivation and associate development. 5.2} The performance management cycle begins with goal setting. Performance is then tracked against the associates goals and eventually appraised in a formal end of appraisal period meeting. An informal mid appraisal period review will also be held. The results of the formal appraisal will feed into the incentive/increment system. 5.3} It has been decided to adapt a Strategy Based Performance Management System. The schematic representation of the system is at Annexure 1. The model will have the following four phases :-

Performance Planning : At the beginning of the appraisal period the appraiser

and appraisee will get together for a performance planning meeting. In this session they discuss as to what the associate will achieve during the appraisal period. The

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objectives, Key Performance Indicators, the competency desired of the appraisee and the individual developmental plans are recorded on the Performance Planning Form and kept with the personal file of the associate that is maintained in the HR Department.

Performance Execution.: Over the course of the appraisal period the associate
works to achieve the goals, objectives and key responsibilities. The appraiser coaches and provides feedback as well as creates conditions that motivates and resolves performance problems that arise. A semi-formal periodic review is held to review performance and set corrections in order to enable the appraisee achieve the laid down objectives.

Performance Assessment:

This is the appraisal system wherein the

supervisor/appraiser has to fill out an Assessment Form. The Appraisal Forms and a copy of the Performance Planning Forms will be sent by the HR Department to the appraiser. . The completed appraisal form is reviewed by the supervisors senior (boss) and submitted to the HR Dept who in turn will scrutinize the same for its correctness. The performance assessment of the appraiser will be shown to the appraisee and signed by both. However the remarks/assessment of the Reviewing Officer will not be shown to the appraisee and will be kept confidential. This is a measure to bring in objectivity, as also avoid a one man report as well as even out the inflationary trend that is generally seen in appraisals that have to be shown to the appraisee. Appraisal forms of HOD (Unit) will also be endorsed by the Corporate Head in the staff / departmental channel of reporting.

Performance Review. The appraiser and the appraisee meet and discuss the
assessment. They will also set a date to hold performance planning discussion for the next appraisal period, at which point performance appraisal starts anew.

6. Purpose of Performance Appraisal

A performance appraisal serves the following purpose:6.1} Provides feed back to associates about their performance and encourages enhanced performance 6.2} Determines who gets incentive and promotion 6.3} Counseling of poor performers 6.4} Determines training and development needs

74

6.5}Confirming that good hiring decisions are being made 6.6} Facilitates layoff and down sizing decisions.

7) Types of Appraisal Forms

Depending upon the managerial level, separate types of Appraisal Forms will be formulated by the Corporate HR Department and used for Senior Management, Mid Level Management and Junior Managerial Cadre. At the Executive Level only an Appraisal Card will be used for the assessment system.

8. Filing and Handling of Appraisal Forms

The Appraisal Form is a privileged document. It should be treated with confidentiality. The receipt/dispatch of the Forms should be done in a secure/confidential envelope. The Form should finally get filed in the personal file of the individual.

9. Criteria for initiation of Appraisal Forms

The following will be the norms for initiation of the Appraisals 9.1} The appraisee should have served for at least 90 days under the appraiser. In case he/she has not served for 90 days then the previous supervisor will be eligible to initiate the appraisal. In case he/she has served for less than 90 days in Care then he/ she will be eligible for an appraisal in the succeeding appraisal period. 9.2} All appraisals will be reviewed and endorsed by the next senior in the line of reporting to the appraiser. 9.3} Appraisals of all HODs (at unit) will also be endorsed by the staff functional head at Corporate. 9.4} Associates below the grade of Manager (or equivalent designation) will not normally be eligible to endorse the appraisal. In case the appraiser is at a designation lower than that of a Manager then a special dispensation of the CHA/HA/Corporate Head should be taken to permit initiation.

75

9.5} In case the appraiser and appraisee are of the same designation then the next senior in line should initiate the appraisal. 9.6} Special endorsements can be made by the MD/ HA/COO/CEO/Chairman on any appraisal form Queries on eligibility of initiation should be addressed to Unit/Corporate HR for clarification.

10) Special Performance Reviews

Special performance reviews can be initiated as necessitated by extraneous circumstances such as special achievements or review of trainee cadre managerial staff seeking to come onto the regular roles. In such cases approval of CHRD should be sought to initiate special appraisal reports.

11. Appraisal Period

The appraisal period and dates for initiation/completion of Appraisal Forms and payment of increments will be as follows:-

Grade

Appraisal Period Initiatio n

DATE Completion of Appraisals Forms 20Apr 20Apr 31Jan 15Feb 30Oct Payment of Increment July June May April November

Senior Management (G10-G12) Middle Level Management Junior Level Management Executive Cadre Nursing Cadre

01Apr-31Mar (next year) 01Apr-31Mar (next year) 01Jan-31Dec 01Jan-31Dec 01Oct-30Sep (next year)

01Apr 01Apr 01Jan 01Jan 01Oct

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12. Performance Rating

Associates will be assessed by the appraiser on various individual qualities as well as their overall performance on ratings as under:12.1. Performance rating A- Performance exceptional and consistently high level 12.2. Performance rating B- Performance superior and consistently exceeds overall performance requirements 12.3. Performance rating C- Performance satisfactory meets most parameters of performance requirements. Weaknesses offset by strong points. 12.4. Performance rating D- Below satisfactory performance. However displays progress towards an enhanced performance 12.3. Performance rating E- Poor performance due to being relatively new to assignment or definite weakness.

13 Performance Incentive
Incentives will be paid once a year along with the annual increment. All incentives will be based on a pay-for-performance scheme. The performance incentive will be paid as merit pay and added to the base salary. As per overall rating of the Reviewing Officer, the appraiser will be authorized the following percentages of incentive:13.1 Performance Rating A - 20% 13.2 Performance Rating B - 15 % 13.3 Performance Rating C - 12 % 13.4 Performance Rating D - 08% 13.5 Performance Rating E - 00%

14 Variable/ Fixed Component of Incentive

The amount set aside for annual increment and performance incentive will depend on budgetary allocation. However the maximum amount that an associate can receive as incentive or increment will be 20 % of gross salary. The amount of increment/incentive that an associate can be paid will be as fixed ( i.e. assured )

77

component and variable ( ie as pay-for- performance ) component will depend on the managerial cadre and allocated as below:-

Grades
Executive Level Junior Management Middle Management Senior Management

Fixed Component
75% 60% 40% 25%

Variable Component
25% 40% 60% 75%

15. Other Merit Incentive Options

The company may decide to give other forms of merit incentives. They can be as follows:15.1 Annual Bonus 15.2 Team Incentives 15.3 Departmental Incentives 15.4 Ex gration payments 15.5 Associate Stock Ownership plan

16. Debarment from initiation of Appraisals

Any associate who is under disciplinary proceedings will be debarred from initiation of appraisals. In such cases the next supervisor in the line of reporting will initiate.

17. Scrutiny of Appraisal Forms

All initiated Appraisals will be subject to scrutiny by the HR Department. The HR Department will check the channels of reporting for its correctness, completion of forms in all respects and objectivity in reporting. In case of anomalies the HR. Department will get the same rectified and then appropriately filed in the personal file of the associate. The performance ratings will be separately recorded on a nominal roll and forwarded to Corporate HR duly authenticated by the Unit HR Head so as to impact the same in the salary of associates.

78

18. Representations against Appraisals

Associates can represent against the rating or any other aspect of the Appraisal. All representations will be made on an application. Comments of the appraiser, Reviewing Officer and HR Department will be obtained on the same and sent to CHRD for decision.

19. Performance/participation in Training Programmes

Participation in training programmes by associates is mandatory. The participation/performance in training programmes will be evaluated and a record of the same maintained by the HR Department. The same will be endorsed in the Appraisal Forms. The performance in the training programmes will be considered while deciding whether the associate is capable of being promoted and assuming higher responsibilities.

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CHAPTER IV DATA ANALYSIS AND INTERPRETATION

80

1) Do you understand the term performance appraisal? a) Yes b) No

Tabular representation of collected data

SOURCE Yes No Ignored NO OF EMPLOYEES 29 04 02 PERCENTAGE 83% 11% 6%

Graphical Representation of collected data:

DO YOU UNDERSTAND THE TERM PERFORMANCE APPRAISAL?

100 80 NO.OF EMPLOYEES PERCENTAGE S 60 40 20 0 Series1 YES 83 NO 11 SOURCE IGNORED 6

Source:

From the questionnaire given to the employees.

Analysis: The above table reveals that 83% of the employees say that they understand
the term of performance appraisals, 11% of the employees say that they do not understand the term of Performance appraisals and remaining 06% of employees are not responding. Interpretation: Most of the employees say that they understand the term performance appraisals.

81

2) Is CARE Hospitals implementing Performance appraisals ? a) Yes b) No Tabular representation of collected data
SOURCE Yes No Ignored NO OF EMPLOYEES 28 06 01 PERCENTAGE 80% 17% 03%

Graphical Representation of collected data:

IS CARE HOSPITALS IMPLEMENTING PERFORMANCE APPRAISAL?

80 70 60 50 NO.OF EMPLOYEES 40 PERCENTAGES 30 20 10 0 Series1 YES 80 NO 17 SOURCE IGNORED 3

Source:

From the questionnaire given to the employees.

Analysis: The above table reveals that 80% of the employees say that they agree that
CARE HOSPITALS implementing the performance appraisals, 17% of the employees say that not implementing the performance appraisals and remaining 3% of employees are not responding.

Interpretation: Most of the employees say that CARE HOSPITALS implementing

the performance appraisals.

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3) Are you aware with the procedure of performance appraisal? a) Yes Tabular representation of collected data
SOURCE Yes No NO OF EMPLOYEES 28 07 PERCENTAGE 80% 20%

b) No

Graphical Representation of collected data:

ARE YOU AWARE WITH THE PROCEDURE OF PERFORM ANCE APPRAISAL?

80 70 60 50 NO.OF EMPLOYEES 40 PERCENTAGES 30 20 10 0 Series1 YES 80 SOURCE NO 20

Source:

From the questionnaire given to the employees.

Analysis: The above table reveals that 80% of the employees say that they aware the
procedure of performance appraisal and remaining 20% of employees says that they are not aware the procedure of performance appraisals.

Interpretation: Most of the employees say that they know the procedure of
performance appraisals.

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4) Which method is implemented by CARE Hospitals? a) Traditional b) Modern Tabular representation of collected data
SOURCE Traditional Modern Ignored NO OF EMPLOYEES 07 27 01 PERCENTAGE 20% 77% 03%

Graphical Representation of collected data:

WHICH METHOD IS IMPLEMENTED BY CARE HOSPITALS

80 60 NO.OF EMPLOYEES 40 PERCENTAGE S 20 0 Series1 TRADITION 20 MODERN 77 SOURCE IGNORED 3

Source:

From the questionnaire given to the employees.

Analysis: The above table reveals that 20% of the employees say that CARE
HOSPITALS implementing the Traditional method, 77% of employees says that CARE HOSPITALS implementing the Modern method and remaining 03% of employees not responding.

Interpretation: Most of the employees agree that CARE HOSPITALS

implementing the Modern method.

84

5) Are you satisfied with present appraisal system being followed in CARE Hospitals? a) Highly satisfied b) Satisfied c) Average satisfy d) Neutral Tabular representation of collected data
SOURCE Highly satisfied Satisfied Average satisfy Neutral Not Satisfy NO. OF EMPLOYEES 01 13 12 08 01 PERCENTAGE 03% 37% 34% 23% 03%

Graphical representation of collected data:

ARE SATISFIED WITH PRESENTAPPRAISAL SYSTEM FOLLOWED IN CARE HOSPITALS ?
40 35 30 25 NO.OF EMPLOYEES 20 PERCENTAGES 15 10 5 0 HIGHLY AVERAGE SATISFIED SATISFIED SATISFY 3 37 34 NEUTRAL 23 NOT SATISFY 3

Series1

Source:

From the questionnaire given to the employees. SOURCE

Analysis: The above table reveals that 03% of the employees say that they are highly
satisfy with the present procedure of Appraisal system,37% of employees are satisfied , 34% of employees are average satisfy, 23% of employees are in neutral position and remaining 03% of employees are not responding.

Interpretation: Most of the employees saying that they are satisfy with the present
Appraisal system followed by the Organization.

85

6) At what frequency performance appraisal system is evaluated? a) Monthly b) Quarterly c) Half yearly d) Annually Tabular representation of collected data
SOURCE Monthly Quarterly Half yearly Annually Ignored NO OF EMPLOYEES 0 0 0 34 01 PERCENTAGE 0% 0% 0% 97% 03%

Graphical representation of collected data:

AT WHAT FREQUENCY PERFORMANCE APPRAISAL SYSTEM IS EVALUATED ?
100 90 80 70 60 NO.OF EMPLOYEES 50 PERCENTAGES 40 30 20 10 0 MONTHLY Series1 Source: From the 0 QUARTERL HALF ANNUALLY IGNORED Y YEARLY 0 0 97 3

questionnaire given to the employees. SOURCE

Analysis: The above table reveals that 97% of the employees say that CARE
HOSPITALS performance appraisal system will evaluated at annually and 03% of employees are not responding.

Interpretation: Most of the employees agree that the performance appraisal system
will be evaluated once in yearly.

86

7) Which you feel is more comfortable and advisable? a) Self appraisal system b) Confidential report system Tabular representation of collected data
SOURCE Self appraisal system Confidential report system Ignored NO OF EMPLOYEES 21 11 03 PERCENTAGE 60% 31% 09%

Graphical representation of collected data:

WHICH YOU FEEL IS MORE COMFORTABLE AND ADVISABLE

60 50 NO.OF 40 EM PLOYEES 30 PERCENTAGE S 20 10 0 Series1 SELF 60 CONFIDENTIA 31 SOURCE IGNORED 9

Source:

From the questionnaire given to the employees.

Analysis: The above table reveals that 60% of the employees say that they feel that
self appraisal system will be more comfortable and advisable, 31% of employees says that confidential report system will be more comfortable and advisable and remaining 09% of employees are not responding.

Interpretation: Most of the employees agree that Self appraisal system will be more
comfortable and advisable.

87

8) Do you receive your Performance appraisal report after it is evaluated? a) Yes b) No Tabular representation of collected data
SOURCE Yes No Ignored Yet to be done NO OF EMPLOYEES 12 21 01 01 PERCENTAGE 34% 60% 03% 03%

Graphical representation of collected data:

DO YOU RECEIVE YOUR PERFORMANCE APPRAISAL REPORT AFTER IT IS EVALUATED ?

60 50 40 NO.OF EMPLOYEES 30 PERCENTAGES 20 10 0 YES Series1 Source: From the 34 NO 60 IGNORED 3 YET TO BE DONE 3

questionnaire given to the employees. SOURCE

Analysis: The above table reveals that 34% of the employees say that they receive the
appraisal report after it is evaluated, 60% of employees says that they dont receive their appraisal report after evaluation, 03% of employees are not responding and remaining 03% of employees are yet to be done till now.

Interpretation: Most of the employees saying that they dont receive their appraisal
report after it is evaluated.

88

9) Who appraises your performance? a) Chief c) Manager

b) GM & AGM d) HOD

Tabular representation of collected data

SOURCE Chief GM & AGM Manager HOD NO OF EMPLOYEES 06 02 01 25 PERCENTAGE 17% 06% 03% 71%

Graphical representation of collected data:

WHO APPRAISES YOUR PERFORMANCE

80 70 60 NO.OF 50 EM PLOYEES 40 PERCENTAGE 30 S 20 10 0 Series1 CHIEF 17 GM & AGM MANAGER 6 SOURCE 3 HOD 71

Source:

From the questionnaire given to the employees.

Analysis: The above table reveals that 17% of the employees say that they Appraised
by Chief,06% of employees say that they appraised by GM & AGM, 03% of employees says that they appraised by Manager and remaining 71% of employees saying that they appraised by the HOD.

Interpretation: Most of the employees saying that they are appraised by their Head
of the department.

89

10) Do you think present performance appraisal system need a Change? a) Yes b) No Tabular representation of collected data
SOURCE Yes No Ignored Yet to done NO OF EMPLOYEES 24 08 02 01 PERCENTAGE 68% 23% 06% 03%

Graphical representation of collected data:

DO YOU THINK PRESENT PERFORMANCE APPRAISAL SYSTEM NEED A CHANGE

70 60 50 NO.OF 40 EMPLOYEES PERCENTAGES 30 20 10 0 YES Series1 Source: 68 NO 23 IGNORED 6 YET TO BE DONE 3

From the questionnaire given to the employees. SOURCE

Analysis: The above table reveals that 68% of the employees say that they think that
present appraisal system need a change, 23% of employees say that no need of change, 06% of employees are not responding and remaining 03% of employees are yet to be done till now.

Interpretation: Most of the employees thinking that present appraisal system need
to be change.

90

11) Do you think self Appraisal is required? a) Yes b) No Tabular representation of collected data
SOURCE Yes No NO OF EMPLOYEES 28 07 PERCENTAGE 80% 20%

Graphical representation of collected data:

DO YOU THINK SELF APPRAISAL IS REQUIRED ?

80 70 60 50 NO.OF EMPLOYEES 40 PERCENTAES 30 20 10 0 Series1 Source: YES 80 NO 20

From the questionnaire given to the employees. SOURCE

Analysis: The above table reveals that 80% of the employees say that Self appraisal is
required and remaining 20% of employees think that self appraisal is not required.

Interpretation: Most of the employees thinking that Self Appraisal system is

required.

91

12) Performance appraisal is used for? a) Identity training needs b) promotions/demotions c) Recognize employee efforts d) All the above Tabular representation of collected data
SOURCE Identity training needs Promotions / Demotions Recognize employee efforts All the above NO OF EMPLOYEES 0 05 11 21 PERCENTAGE 0% 09% 31% 60%

Graphical representation of collected data:

PERFORMANCE APPRAISAL IS USED FOR ?
60 50 40 NO.OF EMPLOYEES 30 PERCENTAGES 20 10 0

Series1

IDENTITY PROMOTION RECOGNIZE TRAINING S/ EMPLOYEE 9 31

ALL THE ABOVE 60

0 Series1 Source: From the questionnaire

given to the employees. SOUCE

Analysis: The above table reveals that 09% of the employees say that performance
appraisal used for giving the promotions/demotions, 31% of employees saying that appraisal is used for the recognize employee efforts and remaining 605 of employees are saying that it is used for all the above.

Interpretation: Most of the employees are saying that performance appraisal is used for identity training needs, promotions/demotions, recognize employees efforts.

92

13) Is there is a need of interactive sessions during Performance appraisal between Hod and employees? a) Yes b) No Tabular representation of collected data
SOURCE Yes No Ignored NO OF EMPLOYEES 31 03 01 PERCENTAGE 88% 09% 03%

Graphical representation of collected data:

IS T HERE IS A NEED O F INT ERAC T IV E S ES S IO NS DURING P ERF O RM ANCE AP P RAIS A L BET W EEN HO D AND EM P L O YEES

100 80
NO .O F 60 EM P L O YEES P ERCENT AG ES40

20 0 S eries 1 YE S 88 NO 9 SO URCE IGNO R E D 3

Source: From the

questionnaire given to the employees.

Analysis: The above table reveals that 88% of the employees are agree that their is a
need of interactive session during performance appraisal between the HOD and employee, 09% of employees are saying that there is no need of interactive and remaining 03% of employees are not responding.

Interpretation: Most of the employees are saying that it is compulsory need the interactive session during performance appraisal between the HOD and employees.

93

14) Do you feel 360 Appraisal would be more effective than the present system? a) Yes b) No Tabular representation of collected data
SOURCE Yes No Ignored NO OF EMPLOYEES 25 06 04 PERCENTAGE 71% 17% 12%

Graphical representation of collected data:

DO YOU FEEL 360 DEGREE APPRAISAL WOULD BE MORE EFFECTIVE THAN THE PRESENT SYSTEM

80 60
NO.OF EM PLOYEES 40 PERCENTAGES

20 0 Series1

YES 71

NO 17 SOURCE

IGNORED 12

Source:

From the questionnaire given to the employees.

Analysis: The above table reveals that 71% of the employees are feel that 360
degrees appraisal would be more effect than the present system, 17% of employees are saying that it is not more effect than the present system, and remaining 12% of employees are not responding.

Interpretation: Most of the employees are feel that 360 degrees appraisal system would be more effective than the present system.

94

15)

Are you sure that you get some sort of benefits by offering Appraisals? a) Yes b) No

Tabular representation of collected data

SOURCE Yes No Ignored NO OF EMPLOYEES 23 11 01 PERCENTAGE 66% 31% 03%

Graphical representation of collected data:

ARE YOU SURE THAT YOU GET SOME SORT BENEFITS BY OFFERING APPRAISAL?

80 60 NO.OF EMPLOYEES 40 PERCENTAGE S 20 0 Series1

YES 66

NO 31 SOURCE

IGNORED 3

Source:

From the questionnaire given to the employees.

Analysis: The above table reveals that 66% of the employees are saying that they get
some benefits after appraisal, 31% of employees are saying that they dont get benefits after appraisals, and remaining 03% of employees are not responding.

Interpretation: Most of the employees are agree that they are getting some sort of benefits after appraised.

95

16) What methods are taken to improve the employees performance? a) Training b) Counseling c) Motivation d) All the above Tabular representation of collected data
SOURCE Training Counseling Motivation All the above Nothing NO OF EMPLOYEES 04 02 05 23 01 PERCENTAGE 12% 06% 14% 65% 03%

Graphical representation of collected data:

WHAT METHODS ARE TAKEN TO IMPROVE THE EMPLOYEE'S PERFORMANCE
70 60 NO.OF EMPLOYEES PERCENTAGE S 50 40 30 20 10 0 Series1 TRAINING 12 COUNSELI 6 SOURCE MOTIVATI 14 ALL THE 65

Source:

From the questionnaire given to the employees.

Analysis: The above table reveals that 12% of the employees are saying that training
is improves the employee performance, 06% of employees are saying that counseling is used for improves the employees performance, 14% of employees are saying that motivation is used for the improves employees performance and remaining 65% of employees are saying that all the above methods are used for the improves the performance of the employees.

Interpretation: Most of the employees are agree that for improving the
performance of the employees all the methods should be used i.e, training, counseling and motivation.

96

17) During Performance appraisal, how do you feel Psychologically ? a) Tense b) Confused c) Normal Tabular representation of collected data
SOURCE Tense Confused Normal NO OF EMPLOYEES 0 04 31 PERCENTAGE 0% 11% 89%

Graphical representation of collected data:

HOU DO YOU FEEL PSYCHOLOGICALLY

90 80 70 60 NO.OF 50 EMPLOYEES PERCENTAGE40 30 20 10 0 Series1 Source: TENSE 0 CONFUSED 11 NORMAL 89

From the questionnaire given to the employees. SOURCE

Analysis: The above table reveals that 11% of the employees are saying that they
may feel confused in the appraisal time and remaining 89% of employees are saying that they feel normally during the appraisal time.

Interpretation: Most of the employees are saying that they may feel normally during the appraisal time.

97

18) Is there is a need of an expert person in H.R dept for Performance appraisal? a) Yes b) No Tabular representation of collected data
SOURCE Yes No Ignored NO OF EMPLOYEES 25 09 01 PERCENTAGE 71% 26% 03%

Graphical representation of collected data:

THERE IS NEED OF AN EXPERT PERSON IN H.R DEPARTMENT FOR PERFORMANCE APPRAISAL

80 70 60 50 NO.OF EMPLOYEES 40 PERCENTAGE 30 20 10 0 Series1 Source: From the YES 71 NO 26 IGNORED 3

questionnaire given to the employees. SOURCE

Analysis: The above table reveals that 71% of the employees are saying that there is a
need of an expert person the H.R. department, 26% of employees are saying that there is no need of expert person in H.R. department and remaining 03% of employees are not responding.

Interpretation: Most of the employees are saying that there is a need of an expert
person in the H.R. department.

98

19) How do you take present Performance appraisal procedure? a) Very Seriously b) Seriously c) Normally d) lite Tabular representation of collected data
SOURCE Very Seriously Seriously Normally No idea NO OF EMPLOYEES 01 05 27 2 PERCENTAGE 03% 14% 77% 06%

Graphical representation of collected data:

HOW DO YOU FEEL ABOUT PRESENT PERFORMANCE APPRASAL PROCEDURE?
80 60 NO.OF EMPLOYEES 40 PERCENTAG ES 20 0 Series1

VERY 3

SERIOUSL NORMALLY 14 SOURCE 77

NO IDEA 6

Source:

From the questionnaire given to the employees.

Analysis: The above table reveals that 03% of the employees says that they feel very
serious, 14% of employees are feel that seriously, 77% of the employees feel that normally and remaining 06% of employees are feel that no idea about the procedure.

Interpretation: Most of the employees are feel that normally about present
performance appraisal procedure.

99

20) How do you feel overall performance appraisal system followed by your Organization a) Excellent b) very good c) Good d) Average Tabular representation of collected data
SOURCE Excellent Very good Good Average Ignored NO OF EMPLOYEES 01 02 21 09 01 PERCENTAGE 03% 06% 60% 25% 03%

Graphical representation of collected data:

OVER ALL PERFORMANCE APPRAISAL SYSTEM FOLLOWED BY YOUR ORGANIZATION
60 50 40 NO.OF EMPLOYEES 30 PERCENTAGE 20 10 0 EXELLENT Series1 3 VERY GOOD 6

GOOD 60

AVERAGE 25

IGNORED 3

Source: From the

questionnaire given to the employees. SOURCE

Analysis: The above table reveals that 03% of the employees says that over all
appraisal system is excellent, 06% of employees saying that it is very good, 60% of employees feel that it is good, 25% of employees feel that is was average and remaining 03% of are not responding.

Interpretation: Most of the employees are feel that over all performance appraisal
system is good.

100

CHAPTER V FINDINGS SUGGETIONS & CONCLUSIONS

101

1.FINDINGS
Most of the employees know about performance appraisal and few of them not aware of the performance appraisal. All the employees agree that CARE HOSPITALS implementing the performance appraisals. Most of the employees say that they know the procedure of performance appraisals and few of them dont know. In the CARE HOSPITALS implementing the Modern method. Most of the employees satisfied with the present appraisal system followed by the CARE HOSPITALS and few of them not satisfied. In this Organization performance appraisal evaluated once in yearly. Most of the employees agree that Self appraisal system will be more comfortable and advisable. Performance feed back is not being implemented in the organization, presently only few employees are receiving performance feedback. The head of the department will appraise the performance of the employees. Most of the employees thinking that present appraisal system need to be change. Most of the employees thinking that Self Appraisal system is required. Most of the employees are saying that performance appraisal is used for identity training needs, promotions/demotions, recognize employees efforts. Most of the employees are feel that 360 degrees appraisal system would be more effective than the present system. Most of the employees are agree that they are getting some sort of benefits after appraised. Most of the employees are saying that there is a need of an expert person in the H.R. department. Most of the employees are feel that overall performance appraisal system is good. Performance appraisal not been done for some categories of employees of the organization.

102

2.CONCLUSION

Performance appraisal refers to the assessment of an employees actual performance, behavior on their jobs, and his or her potential for future performance.

Appraisals has several objectives but the main purposes are training needs, to assess training needs, to effect promotions, and to give pay increases.

Employees have to understand about his or her roles and become clear about his functions, he or she understands his or her own strengths and weaknesses.

Performance appraisal should cover at all levels of the employees but it covers only few levels. Not only few employees are aware of performance appraisal all the employees should be aware. Appraisal needs support of all levels of employees.

The management has to make performance appraisal understand and clear about questionnaire to every employee.

Organization has to maintain proper communication between superior and subordinate. Which leads to organizational effectiveness and employee well being. Organizational relations also been maintained.

The quality of work in the organization since the quality of work depends on the performance of the employee.

The term Performance Appraisal is concerned with the process of valuing a persons worth to an organization with a view to increasing it.

103

3.SUGGESTIONS
The awareness can be created among all the employees by conducting classes and interactive sessions about the Performance Appraisal. The organization should cover all categories of employees for appraisal system. Hence different forms should be designed for different categories of employees of the Organization. By this the employees will know about their lacking and try to improve and their superior should counsel the employee about the Performance. Organization should give feedback to all levels of employees. Organization should focus on performance feedback and it should be communicated for all the employees of CARE Hospitals. Organization should give scope for interaction between superior and subordinate. Organization should appoint an expert in appraisal to make appraisal authentic and foolproof. Performance appraisal should be done for the lower level employees also, so that they can work sincerely. Periodical appraisal helps the company to compare employees performance and to take apt decisions for further improvement Annual performance appraisals evaluate the role of the employee in the organizational development and also monitoring the standard, expectations, objectives, efficiency in handling task and responsibilities in a period of time. Each employee should evaluate by his supervisor and to discuss each other to set objectives for upcoming evaluation. This discussion should cover the review of overall progress, problems encountered, performance improvement possibilities, long term career goals, specific action plan about job description and responsibilities, employee development interest and needs, to concentrate specific areas of development, to review performance objectives and performance standard, ongoing feedback and periodic discussions

104

APPENDIX

105

APPENDIX
T.NANI MHRM IV SEM, K.G.R.L COLLEGE OF P.G COURSES BHIMAVARAM, WEST GODAVARI_DIST.

As part of my project work for the fulfillment of the partial requirement of the award of MHRM, K.G.R.L COLLEGE OF P.G COURSES affiliated to Andhra University. I request you to spare few minutes of your valuable time to respond to the questions given in the questionnaire. My study is based on Human Resource Management-PERFORMANCE APPRAISAL. I assure this is strictly confidential and purely an academic exercise and shall not be published or disclosed outside under any circumstances.

106

PERSONAL DETAILS:
EMPLOYEE NAME: DEPT.: DESIGNATION: AGE.: EDUACATION: EXPERIENCE EMPLOYEE CODE:

Please mention your perception by rating your organization on each statement using the two or four rating scale. 1) Do you understand the term performance appraisal? a) Yes b) No

2) Is CARE Hospitals implementing Performance Appraisals? a) Yes b) No 3) Are you aware with the procedure of performance appraisal? a) Yes b) No 4) Which method is implemented by CARE Hospitals? a) Traditional b) Modern 5) Are you satisfied with present appraisal system being followed in CARE Hospitals? a) Highly satisfied b) Satisfied c) Average satisfy d) Neutral

107

6) At what frequency performance appraisal system is evaluated? a) Monthly b) Quarterly c) Half yearly d) Annually 7) Which you feel is more comfortable and advisable? a) Self appraisal system b) Confidential report system 8) Do you receive your Performance appraisal report after it is evaluated? a) Yes b) No 9) Who appraises your performance? a) Chief b) GM & AGM c) Manager d) HOD 10) Do you think present performance appraisal system need a change? a) Yes b) No 11) Do you think self Appraisal is required? a) Yes b) No 12) Performance appraisal is used for a) Identity training needs b) promotions/demotions c) Recognize employee efforts d) All the above 13) Is there is a need of interactive sessions during Performance Appraisal between Hods and employees? a) Yes b) No

14) Do you feel 360 Appraisal would be more effective than the present system? a) Yes b) No 15) Are you sure that you get some sort of benefits by offering Appraisals? a) Yes b) No

16) What methods are taken to improve the employees performance? a) Training b) Counseling c) Motivation d) All the above

108

17)

During Performance Appraisal, psychologically? a) Tense b) Confused

how

do

you

feel

c) Normal

18)

Is there is a need of an expert person in H.R dept for Performance Appraisal? a) Yes b) No How do you take present Performance Appraisal procedure? a) Very Seriously b) Seriously c) Normally d) No idea

19)

20) How do you feel overall performance Appraisal system followed by your Organization? a) Excellent b) very good c) Good d) average

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BIBLIOGRAPHY

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BIBLOGRAPHY
HUMAN RESOURCE MANAGEMENT AND INDUSTRIAL RELATIONS SUBBA RAO.P HUMAN RESOURCE MANAGEMENT ASWATHAPPA.K APPRAISING AND DEVELOPING MANAGERIAL PERFORMANCE RAO, T.V PERFORMANCE MANAGEMENT PREM CHADHA

Websites:

www.carehospitals.com www.google.com www.changingminds.org www.performance-appraisal.com

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