A Study On Performance Appraisal

A STUDY ON
PERFORMANCE
APPRAISAL
Mohan Reddy
Roll no:121409672003
CHAPTER-1
INTRODUCTION
Performance of individual in an organization would vary over a

period of time. When their performance can be monitored and attitudes
are changed over a period of time adapting to the changing
requirements, the organization can achieve its objectives.
The system of studying the performance though it is a continuous

process, many organizations have adopted a system of annual
performance appraisal to study the performance of each and every
individual employee and counsel for improvement there by bridging the
gaps between the expected and annual performance of an individual in
an organization. The appraisal done in whatever form carried out at
different levels is done with a view to identify the areas that can be
improved, remove any detriments, identifying the training needs,
recognize the individual strengths and weaknesses to see the suitability
for promotion or transfer to areas with more responsibility or to counsel
if required.
The very aspect of performance appraisal is to make an employee

happy on his job and making employees realize that they are factors
which would bring drastic improvements in the performance of all the
employees at various levels.
Performance appraisal helps to create to and maintain a

satisfactory level of performance. To contribute to the employee growth
and development thorough training, self and management programs. It
will help the supervisors to have a proper understanding about their
subordinates and to guide the job changes with the help of continuous
ranking. It facilitates fair and equitable compensation based on
performance.
Performance appraisal has been considered as the most significant

tool of an organization as it is highly useful in decision making
regarding various aspects such as promotions and improving
productivity.
Performance appraisal is an important tool of performance

management. It is the judgment of characteristics, traits and performance
of employees and has a wide range of utility and goes a long way in
promoting the overall performance and effectiveness of the organization.
NEED AND IMPORTANCE

Performance appraisal has been considered as the most significant tool
for and organization for the information it provides is highly useful. It
helps:
 To make decisions regarding personal aspects such as promotions
and merit based rewards and promotions.
 To provide a basis for judging the effectiveness of personal sub-
divisions such as recruitment, selection, training and
compensation.
 To pin-point weak areas in the primary system.
 To identify training and counseling needs.
Formal appraisal plans are designed to meet three needs of the

organization and individual, namely
 To provide systematic judgments to back up salary increments,
transfers, demotions or terminations.
 They are a means of informing employees about their performance
and suggesting needed changes in behaviors, skills, or job
knowledge.
 The information is used as a base for coaching and counseling by
the supervisors.
OBJECTIVES
1. To study the performance appraisal system in ICICI.

2. To study how effective performance appraisal acts as a tool
in improving individual and organization performance.
3. To study the level of satisfaction among the employees with
regard to the existing system.
RESEARCH METHODOLOGY
Research methodology is the systematic way to solve research problems.
RESEARCH DESIGN:
The research methodology is exploratory in nature. A structured

questionnaire has been used for the purpose of this study. The HR
manager was interviewed in order to collect more data.
DATA SOURCES:
PRIMARY DATA: This has been collected from the executive staff
and other employees. The questionnaire was administered to them to
solicit their views on the existing system of appraisal.
SECONDARY DATA: These have been collected from journals,
magazines, websites and documents of ICICI.
STATISTICAL TOOLS:
The statistical tools that were used for the purpose of this
study include Bar Diagrams, Averages and Percentages.
Sample size: Sample size determines the no. of people to be surveyed. The
sample size was 55 respondents.
Sampling Method: It determines the method to be followed to choose the

sample i.e. how should the respondents be chosen.
Data analysis :
The data analysis is done by using tables and graphs
Scope of the study

Performance appraisal is confined to employees of ICICI
Bank,Begumpet,Secunderad. The sample size includes 55 employees of
different departments like
 Finance
 Human resource
 Information technology.
CHAPTER-2
LITERATURE REVIEW
Well-managed organizations use employee performance appraisal the

single most powerful instrument in mobilizing employees to achieve
strategic goals.
No other management process has as much influence over individual’s

careers and work lives. Used well, performance appraisal can focus each
person’s attention on the organization’s mission, vision and values. But
poorly used, the procedure quickly becomes ineffective.
Definition:
According to Flippo
“Performance appraisal; is the systematic, periodic and an impartial
rating of an employee’s excellence in matters pertaining to his present
job and his potential for a better job”
Performance appraisal is a comparison or actual performance during the

review period with the past direction, and an opportunity to set future
direction.
Effective performance appraisal system contains two basic systems

operating in conjunction.they are
 An evaluation system
 A feedback system,

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A STUDY ON

Performance of individual in an organization would vary over a

The system of studying the performance though it is a continuous

The very aspect of performance appraisal is to make an employee

Performance appraisal helps to create to and maintain a

Performance appraisal has been considered as the most significant

Performance appraisal is an important tool of performance

NEED AND IMPORTANCE

Formal appraisal plans are designed to meet three needs of the

1. To study the performance appraisal system in ICICI.

The research methodology is exploratory in nature. A structured

Sampling Method: It determines the method to be followed to choose the

Scope of the study

Well-managed organizations use employee performance appraisal the

No other management process has as much influence over individual’s

Performance appraisal is a comparison or actual performance during the

Effective performance appraisal system contains two basic systems

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