CHAPTER I INTRODUCTION

1.1 INTRODUCTION TO THE TOPIC Performance appraisal is a method of evaluating the behaviour of employees in the work spot, normally it including both the quantitative and qualitative aspects of job performance. It is a systematic and objective way of evaluating both work related behaviour and potential of employees. It is a process that involves determining and communicating to an employee how he or she is performing the job and ideally, establishing a plan of improvement. Performance appraisal has two over arching goals: To encourage high levels of worker motivation and performance. To provide accurate information to be used in managerial decision making. These goals are interrelated because one of the principal ways that managers motivate workers is by making decisions about how to distribute outcomes to match different levels of performance. Developing a Performance Appraisal Managers can use the information gained from performance appraisal for two main purposes: 1. Developmental purposes such as determining how to motivate a worker to perform at a high level, evaluating
1

which of a worker's weaknesses can be corrected by additional training, and helping a worker formulate appropriate career goals. 2. Evaluative, decision-making purposes such as deciding whom to promote, how to set pay levels, and how to assign tasks to individual workers. Methods of Appraisal The measures managers use to appraise performance can be of two types: objective or subjective. Objective measures such as numerical counts are based on facts. They are used primarily when results are the focus of Performance appraisal. The number of televisions a factory worker assembles in a day, the dollar value of the sales a salesperson makes in a week, the number of patients a physician treats in a day and the return on capital, profit margin, and growth in income of a business are all objective measures of performance. Subjective measures are based on individuals' perceptions, and can be used for appraisals based on traits, behaviors, and results. Because subjective measures are based on

perceptions, they are vulnerable to many of the biases and problems that can distort person perception. Because there is no alternative to the use of subjective measures for many jobs, researchers and managers have focused considerable attention on the best way to construct subjective measures of performance.

 360-degree appraisal - a worker's performance is evaluated by a variety of people who are in a position to evaluate it. A 360-degree appraisal of a manager, for example, may include evaluations made by peers, subordinates, superiors, and clients or customers who are familiar with the manager's performance. The manager would then receive feedback based on evaluations from each of these sources. When 360degree appraisals are used, managers have to be careful that each evaluator is familiar with the performance of the individual he or she is evaluating. While 360-degree appraisals can be used for any different kinds of workers they are most commonly used for managers. 1.2 STATEMENT OF THE PROBLEM The performance appraisal of the employees in the organization should be an effective tool for measuring the employees performance. If the performance not measured in a real manner it will be a critical issue. A study on impact of performance appraisal was undertaken to study the reasons and ways to improve the condition.

1.3 OBJECTIVES OF THE STUDY The present study on Impact of Performance Appraisal System was undertaken with the following objectives: To study performance appraisal system at Sree

Venkateswara Mills Private Limited. To find whether the feedback from the appraisal system assists in the employees training and development. To determine what type of appraisal did the employees really looking for. To find whether there is any opportunities provided for the employees to improve their performance. 1.4 SCOPE OF THE STUDY The scope of the project is fully dependent upon the objectives of the project. This study can be helpful to the company for conducting any further research. The study is also helpful in finding out the respondents opinion towards certain attributes. It is also helpful in finding out the reach and effectiveness of the performance appraisal system. This study also serves as a base for understanding the perception about the employees regarding their

performance appraisal. With the results of the study the company can improve their standards of their appraisal system.

CHAPTER II CONCEPTS AND REVIEW

2.1 CONCEPT OF THE STUDY Definition of performance appraisal A formal and systematic process, by means of which the job relevant strength and weakness of the employees are identified, observed, measured and developed. Concept of Performance Appraisal In the best of worlds, employees would love their jobs, like their co-workers, work hard for their employees, get paid well for their work, have ample chances for advancement, and flexible schedules so they could attend to personal or family needs when necessary. The performance appraisal is to assess a person and let him to know where he is being standing along with the job. It is to find whether he is performing with his task or not. Characteristics of Performance Appraisal The main characteristics of performance appraisal may be listed thus The appraisal is a systematic process. It tries to evaluate performance in the same manner using the same approach. A number of steps are followed to evaluate an employees strength and weakness. It provides an objective description of an employees jobs relevant strengths and weaknesses.
5

 It tries to find out how well the employee is performing the job and tries to establish a plan for further improvement. The appraisal is carried out periodically, according to a definite plan. It is certainly not a one-shot deal. Performance evaluation is not job evaluation. Performance appraisal refers to how well someone is doing an assigned job. Job evaluation, on the other hand, determining how much a job is worth to the organisation, and therefore, what range of pay should be assigned to the job. Performance appraisal may be formal or informal. The informal evaluation is more likely to be subjective and influenced by personal factors. Some employees are liked better than others and have, for that reason only, better chances of receiving various kinds of rewards than others. The formal system is likely to be more fair and objective, since it is carried out in a systematic manner, using printed appraisal forms. Needs of Performance Appraisal An Industry has to rely heavily on measuring the performance of individuals for varied purposes: To assess the ability of the individual in order to make the best use of his talent in the present Job To find out areas of weakness in order to develop him for improving his performance To provide for management succession by judging the potential of an individual

 To effect changes in the organization by transfers or promotions so as to fix the individuals according to their ability and To help in their training and development by identifying the strengths and weaknesses of individuals. 2.2 REVIEW OF RELATED LITERATURE M Bowels and G Coates (1993) expressed that Managers are mostly appraised by results, but results alone cannot reflect performance because it is still affected by many other factors. The problems faced by the organization experiencing some difficulties were measuring performance and the extra demands made on managers. Management should provide

the enabling conditions through which work is performed. Performance appraisal should be an opportunistic means to address performance issues rather than a coherent systematic process. V.S.P.Rao, in his book Human Resource Management (2005), indicated that performance appraisal method of evaluation the behaviour of employee in the work spot normally includes both the quantitative and qualitative aspects of job performance. It is a systematic and objective way of evaluating both work-related behaviour and potential of employees. It is a process that involves determining and communicating to an employee how he or she is performing the job and ideally, establishing a plan of improvement. Udai Pareek and T.V.Rao (2008), expressed that performance appraisal can be an effective instrument for helping people grow and develop in organisation setting. It could be used as a mechanism of continuing education and learning forms one another. Through a well-organised
7

appraisal system an employee can create learning spaces for himself in an organisation. Recent researchers and experiences have shown that development-oriented performance appraisal and review system, when effectively practiced, substantially contributes to the organisation health and facilities multiplication of managerial resources. D Winstanely and K Stuart-Smith (1996), said that conclusive evidence that leads to improved performance is lacking because of Not enough time is given to the process. It reinforces modes of intrusive control. The focus must move away from measurement and judgement towards developing, understanding and building up trust to allow a genuine dialogue to take place between appraisers and appraise.

2.3 COMPANY PROFILE SREE VENKATESA MILLS (P) Ltd. is a partnership concern started in 1990. The company is engaged in spinning and weaving process. The company manufactures Grey Gada Cloth. Quality is the watch word of SREE VENKATESA MILLS (P) Ltd., ever since inception. With an installed capacity of 4968 spindles. Modern machinery and the latest technology the mill focus how to face the competition. Historical Sketch of the Company The partners of this company started the business with a small investment of four power loom machines. During that time Tamilnadu government announced palladam Taluk as a backward area where the industry is existing. Utilizing this opportunity provided by the government, they purchased six more machines with the installed capacity of ten machines; they started a small industrial unit. The cloth manufactured by this textiles unit had a great demand in the initial stages, because of this increase in demand, they gained profit and with their hard work they started a big industrial unit. They purchased 36 power loom machines for the new industrial unit with the loan provided the bank. It increased to another 12 more machines. During 1992- 93, there was a great problem, of non availability of yarn. This is because of high export to foreign countries and lack of yarn. So they decided to purchase cotton to produce yarn for their own use. For this purpose they started a spinning mill with the help of the Tamilnadu Industrial development corporation fund.
9

During 1994 they approached Tamilnadu Industrial Investment Corporation (TIIC).They also got a subsidy of 8032 lakhs. TIIC had given the same as Bridge Loan through Tamilnadu Industrial Investment Corporation. In addition to this, the government also provided subsidies in electricity respectively. Production Process Transformation of raw materials into finished goods is the duty of production department. The various process of production is as follows. Mixing Normally the cotton purchased from the parties is in the form of Bales / Borahs. After purchasing, it is sent to SISPA for testing or it is tested in the MILL LAB. The mixing is generally for count wise yarn production. This mixing proportion is most import for every textile, ill at the primary stage. Blow Room In Blow room waste contamination such as seeds, seed coats, leafy matter and sand/dust are separated from cotton. Blow room function is to form a compact and uniform sheet of lap form. These laps are rolled in a lap rod. In this department the mill maintains a lap weight record shows how many laps are produced in a day. (i.e.), 40 percentage in the first, second and third year

10

Carding Carding is also called heart of the mill. Carding machines are used to remove the neaps, which are present in the lap. This Carding machines output is in the form of hanks and is collected in the canes. This hank is called as CARDING SLIVER. Drawing The objective of the draw frame is to align a maximum of eight slivers into one while parallelizing the combed fibers and evening out the variation by the doubling of many slivers and to reduce the coefficient of variation of mass. The delivered sliver is transported to SIMPLEX. Simplex The objective of the simplex is to reduce the mass of the sliver by imparting draft and twisting. To impart twist into the standard and form a compact package suitable for subsequent processing. Spinning The objective of the spinning is to spin the yarn of desired count form a feed simplex bobbin of bulkier mass by adopting drafting through series of rolls having successively increasing surface speed and winding the yarn delivered into an empty tube by the variation caused due to lag of travel to that of spindle speed. The yarn that formed compactly on the tube is transported for reeling per cone winding section as per requirements.

11

Winding The objective of winding is to form bigger package from more number of ring spinning cops of less weight and form a continuous thread for subsequent operation like knitting wrapping and at times doubling. The nature of yarn requirement and specification decide the removal of objectionable faults like slabs, long thick thin place etc. for which Electronic yarn clearer is utilized. Packing In the department the cones are packed. Each cone weights 1.25 kg. Sizing The yarn which is coned in cone winding is sent for sizing mills. They are sizing the yarn into whichever ends they want starch and other chemicals are used in yarn. Weaving The process of weaving simply consists of the interlacing of two series if threads known as WARP and WEFT. When weaving a piece of cotton cloth with selvages on the right hand and left hand sides. The threads which run length ways or parallel to the selvages are termed the WARP and that that runs across the cloth or at right tangles to the warp is termed as WEFT. The scheme or order in which the weft in interlaced with the warp is known as WEAVE. Power loom weaving is particularly important because it influences the production of good cloth.
12

Testing and Quality Control The process of testing for quality is done in two levels one at the textile mill itself where the lap is equipped with strength tester, counter tester, and hank tester. The other at the various independent as well as Government bodies likes sispa- (small Indian spinners association). Technological up gradation is done as and when required in order to keep up the quality standards with the installations and favourable salubrious climate, known only to that area the quality of the produced is uniform always.

13

Chapter III RESEARCH METHODOLOGY

3.1 INTRODUCTION Research is a scientific and systematic search for pertinent information on a specific topic. Research is an art of scientific investigation. According to Clifford Woody, Research comprises defining and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions and reaching conclusions and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. 3.2 RESEARCH DESIGN Research design aids the researcher in the allocation of limited resources by posing crucial choices in methodology. Research design is the plan and structure of investigation so conceived as to obtain answers to research questions. The plan is the overall scheme or program of the research. It includes an outline of what the investigator will do from writing hypothesis and their operational implications to the final analysis of data. Descriptive Research Design The design for this study is descriptive research design. This design was chosen as it describes accurately the characteristics of a particular system as well as the views held by individuals about the system. The views and opinions of employees about the system help to study the

14

suitability of the system as well as the constraints that might restrict its effectiveness 3.3 SAMPLING TECHNIQUES The sampling technique adopted for the purpose of the study is convenience sampling. As the name implies a convenience sample means selecting particular units of the universe to constitute a sample. Sample Size The sample size of the study is 150. This sample is considered as representative. 3.4 DATA COLLECTION Primary source: The primary data are those which are collected as fresh for the first time and thus happen to be original in character. The Primary data were collected directly from employees with structured questionnaire. Secondary Source The secondary data are those which have already been collected by someone else and which have already been passed through the statistical process. The secondary data were collected through company records and magazines, journals and from internet.

15

3.5 TOOLS OF THE STUDY Tool used for data collection: The tool used for collecting the data is through the questionnaire. The main reason for selecting the questionnaire method for the study is: Respondents have adequate time to give well throughout answers. The time of the study was also a limiting factor. Five pointer scales were use through the Questionnaire. Statistical tools used Statistical tools like Tabulation, Graphic representations and, ChiSquare, are used in the compilation and computation of data. Chi-Square Test The Chi-Square test is an important test amongst the several tests of significance developed by statisticians. Chi-square, symbolically written as X2 (pronounce at ki-square), is a statistical measure used in the context of sampling analysis for comparing a variance to a theoretical variance. As a non-parametric test, it can be used to determine if categorical data shown dependency or the two classifications are independent. It can also be used to make comparison between theoretical populations and actual data when categories are used. Thus, the Chisquare test is applicable in large number of problems. The test is, in fact, a technique through the use of which it is possible for all researchers to Test the significance of association between two attributes, and Test the homogeneity or the signification of population variance
16

Chi-Square = (O-E) 2 / E Where O = Observed Frequency, E = Expected Frequency The calculated value of chi-square is compared with the table value of chi-square for given degrees of freedom of specified level of significance. If the calculated value of chi-square is greater than the table value the difference between the theoretical value and the observed is considered to be significant, i.e., it could not have risen due to fluctuations of simple sampling. On the other hand if the calculated value is less than the table value, the difference between the theory and observation is not considered significant, i.e., it could have risen due to fluctuations of sampling. The number of degrees of freedom is described as the number of observations that are free to vary after certain restrictions have been imposed on the data. For a uniform distribution, we place one restriction on the expected distribution - the total of sample observations. Percentage analysis: Percentage refers to a special kind of ratio. Percentage is used in making comparison about two or more series of data. Percentage as also used to describe relationship. It is also used to compare the relative terms of two or more series of data. Number of respondents Formula= Total no. of respondent

100

17

Area of the Study The study was conducted at SREE VENKATESWARA MILLS (P) Ltd Palladam. Closed-Ended Questions Such questions are also called fixed alternative questions. This method is also facilitators the respondent to answer in some other way on other alternative is provided as a choice. 3.6 HYPOTHESIS OF THE STUDY Null hypothesis is used for testing. It is a statement that no significance difference exists between the parameter and statistics being compared to it. The alternative hypothesis is the logical opposite of the null hypothesis The study includes the statement of null hypothesis and alternative hypothesis by comparing age group of the respondents and preference of the appraisal system.

18

3.7 LIMITATIONS OF THE STUDY Time and resource were the major constraints during the execution of the project. Therefore only a limited number of employees were included in the sample. The study was done in single textile unit only, so it cant be generalised for the entire textile industry. Some of the respondents find difficult to spare time with the researcher and hence they did not responded. There are many respondents who hesitated to answer the questionnaire. The human behaviour is quite dynamic and hence the results may not hold good for a long time. The results of the survey are totally dependent on the accuracy and authenticity of the information provided by the respondents.

19

CHAPTER IV ANALYSIS AND INTERPRETATION

4.1 ANALYSIS OF THE DATA TABLE 1 TABLE SHOWING GENDER OF THE RESPONDENTS Gender Male Female Inference From the above table it is inferred that 88% of the respondents are male and 12% of the respondents are female. No. of respondents 132 18 Simple percentage 88 12

20

FIGURE 1

CHART SHOWING GENDER OF THE RESPONDENTS

100 90 80 70 88%

Percentage

60 50 40

30
20 10 0 Male Female

12%

Gender of respondents

21

TABLE 2 TABLE SHOWING AGE GROUP OF THE RESPONDENTS Age group 19-23 24-28 29-33 34-38 Above 38 Inference The above table shows that 28% of the respondents are between the age group of 24-28, 26% of the respondents are above 38, 18% of the respondents are in the age group of 29-33 and 34-38, 10% of the respondents are in the age group of 19-23. No. of respondents 15 42 27 27 39 Simple percentage 10 28 18 18 26

22

FIGURE 2 CHART SHOWING AGE GROUP OF THE RESPONDENTS

30 25

28% 26%

Percentage

20 15

18%

18%

10%
10 5 0 19-23 24-28 29-33 34-38 above 38

Age group of respondents

23

TABLE 3 TABLE SHOWING THE EXPERIENCE IN THE PRESENT JOB Experience in Year No of respondents Simple percentage 1-10 11-20 21-30 31-40 Inference The above table shows that 68% of the employees are having 1-10 years of experience, 20% of the employees having 11-20 years of experience, 10% of the employees having 21-30 years of experience and 02% of the employees having 31-40 years of experience. 102 30 15 03 68 20 10 02

24

FIGURE 3 CHART SHOWING THE EXPERIENCE IN THE PRESENT JOB

80 70 60

2%

percentage

50 40 30 20 10 0

10% 20% 68% 1-10 years 11-20 years 21-30 years 31-40 years

Experience in the present job

25

TABLE 4 TABLE SHOWING THE BASIS OF THE PERFORMANCE APPRAISAL Basis of performance appraisal No of respondents Simple percentage Quality Target Both 18 12 120 12 08 80

Inference The above table shows that 80% of the respondents prefer both the quality and target for their basis of performance appraisal, 12% of the respondents prefer quality alone and 8% of the respondents prefer target alone.

26

FIGURE 4 CHART SHOWING BASIS OF THE PERFORMANCE APPRAISAL

90 80

80%

70

Percentage

60 50 40 30 20 10 0

12%

8%
Target Appraisal basis Both

Quality

27

TABLE 5 TABLE SHOWING FREQUENCY OF THE APPRAISAL Frequency of appraisal No of respondents Simple percentage Monthly Half yearly Annual 360 degree Inference The above table shows that 50% of the respondents prefer annual appraisal, 40% of the respondents prefer half yearly appraisal, 6% of the respondents prefer monthly appraisal and 4% of the respondents prefer 360 degree appraisal. 09 60 75 06 06 40 50 04

28

FIGURE 5 CHART SHOWING FREQUENCY OF THE APPRAISAL

60

50%
50

40%
40

Percentage

30 20 10 0

6%

4% Half yearly Annual Appraisal frequency 360 degree

Monthly

29

TABLE 6 TABLE SHOWING CRITERIA FOR PERFORMANCE Performance appraisal based on No of respondents Simple percentage Personality traits Behaviour Results All the above Inference The above table shows that 80% of the respondents agreed that their appraisal based on personality traits, behaviour and results, 10% of the respondents agreed it is based on results alone, 6% of the respondents agreed that it is based on behaviour, 4% of the respondents agreed it is based on personality trait for their appraisal. 06 09 15 120 04 06 10 80

30

FIGURE 6 CHART SHOWING CRITERIA FOR PERFORMANCE

90 80 70 60 50 40 30 20 10 0

80%

Percentage

4%
Personality traits

6%
Behaviour

10%
Result All the above

Appraisal criteria

31

TABLE 7 TABLE SHOWING TYPES OF APPRAISAL RESPONDENTS PREFER

Types of appraisal Subjective Objective Both Inference

No of respondents 18 18 114

Simple percentage 12 12 76

The above table shows that 76% of the respondents prefer both subjective and objective factors, 12% of the respondents prefer subjective alone and 12% of the respondents prefer objective alone for their appraisal.

32

FIGURE 7 CHART SHOWING TYPE OF APPRAISAL RESPONDENTS PREFER 76%

80 70

Percentage

60 50 40 30 20

12%
10 0

12%

Subjective Objective Both Appraisal prefer by respondents

33

TABLE 8 TABLE SHOWING GENDER DISCRIMINATIONRESPONDENTS OPENION

Based on gender, any discrimination Yes No Inference

No of respondents

Simple percentage

48 102

32 68

The table shows that 68% of the respondents said that there is no gender discrimination and 32% said there is gender discrimination for performance appraisal.

34

FIGURE 8 CHART SHOWING GENDER DISCRIMINATION RESPONDENTS PREFER

40 35 30

34%

Percentage

25

20

16%
15 10 5 0

Yes Gender discrimination

No

35

TABLE 9 TABLE SHOWING THE REPORTING NATURE OF THE RESPONDENTS Daily contact at the time of appraisal Strongly agree Agree No Comment Disagree Strongly Disagree Inference The table shows that 48% of the respondents agree that they are having daily contact, 22% of the respondents are having no comment, 20% of the respondents are disagree with the daily contact, 3% of the respondents are strongly agree with the daily contact and 2% of the respondents are strongly disagree with the daily contact. No of respondents 09 72 30 33 06 Simple percentage 06 48 20 22 4

36

FIGURE 9 CHART SHOWING THE REPORTING NATURE OF THE RESPONDENTS

60 50 40

48%

Percentage

30

20%
20 10 0

22%

6%

4% Agree No comments Disagree Strongly disagree

Storogly agree

Opinion-Reporting on daily basis

37

TABLE 10 TABLE SHOWING FEEDBACK GIVEN AT THE TIME OF APPRAISAL Feedback given at the time of appraisal Strongly agree Agree No Comment Disagree Strongly Disagree Inference The table shows that 56% of the respondents are agree that the feedback was given at the time of appraisal, 20% of the respondents dont want to comment, 14% of the respondents are strongly agree that the feedback was given, 8% of the respondents are disagree that the feedback was given, and 2% of the respondents are strongly disagree that the feedback was given at the time of appraisal. 21 84 30 12 03 14 56 20 08 02 No of respondents Simple percentage

38

FIGURE 10 CHART SHOWING FEEDBACK GIVEN AT THE TIME OF APPRAISAL 60 50 40 percentage 30 20 14% 10 0 Strongly agree Agree No comments Disagree strongly disagree 8% 2% 20% 56%

Opinion-Appraisal feed back

39

TABLE 11 TABLE SHOWING APPRAISAL EVALUATION -STRENGTH AND WEAKNESSES Appraisal evaluates strength and weaknesses Strongly agree Agree No Comment Disagree Strongly Disagree Inference The table shows that 42% of the respondents agree with that performance appraisal helps to evaluate their strength and weaknesses, 24% of the respondents are strongly agree, 24% of the respondents given no comment,6% of the respondents are disagree, and 4% of the respondents are strongly disagree with that performance appraisal helps to evaluate their strength and weaknesses. No of respondents 36 63 36 09 06 Simple percentage 24 42 24 06 04

40

FIGURE 11 CHART SHOWING APPRAISAL EVALUATESSTRENGTH AND WEAKNESSES

45 40 35

42%

Percentage

30

25
20 15 10 5 0

24%

24%

6%

4% Strongly agree

Strongly agree

Agree

No comments

Disagree

Opinion-Evalotion of strength and weakness

41

TABLE 12 TABLE SHOWING APPRAISER EVALUATION ON SKILL GAPS Exactly evaluates the skill gaps No of respondents Simple percentage Strongly agree Agree No Comment Disagree Strongly Disagree Inference The table shows that 56% of the respondents are agree with evaluation of skill gaps, 26% of the respondents given no comment,10% of the respondents are strongly agree with evaluation of skill gaps and 8% of the respondents are disagree with the evaluation of the skill gaps in their performance appraisal. 15 84 39 12 00 10 56 26 08 00

42

FIGURE 12 CHART SHOWING APPRAISER EVALUATION ON SKILL GAPS

60 50

56%

Percentage

40 30 20

26%

10%
10 0

8%
0

Strongly Agree No Disagree Strongly agree Comments Disagree Opinion-Appraisal evaluation on skill gap

43

TABLE 13 TABLE SHOWING THE TRAINING ENHANCEMENT Organization providing effective training Strongly agree Agree No Comment Disagree Strongly Disagree Inference The table shows that 36% of the respondents given no comment regarding effective training, 32% of the respondents are agree with the effective training, 24% of the respondents are strongly agree with the effective training, 6% of the respondents are disagree with the effective training and 2% of the respondents are strongly disagree with the effective training imparted by the organization. 36 48 54 09 03 24 32 36 06 02 No of respondents Simple percentage

44

FIGURE 13 CHART SHOWING THE TRAINING ENHANCEMENT

40 35 30

36% 32% 24%

Percentage

25 20 15 10 5 0

6% 2% Strongly agree Agree No Comments Disagree Strongly disagree

Opinion-Traning enhancement

45

TABLE 14 TABLE SHOWING THE ROLE OF APPRAISAL IN THE EMPLOYEE GROWTH Appraisal helps in No of respondents Simple percentage

personal growth Strongly agree Agree No Comment Disagree Strongly Disagree Inference The table shows that 46% of the respondents are agree with their personal growth, 26% of the respondents given no comment, 24% of the respondents are strongly agree with their personal growth and 4% of the respondents are disagree with their personal growth through performance appraisal. 36 69 39 06 00 24 46 26 04 00

46

FIGURE 14 CHART SHOWING THE ROLE OF APPRAISAL IN THE EMPLOYEE GROWTH

50 45 40 35

46%

percentage

30 25 20 15 10 5 0

24%

26%

4% 0 Strongly agree Agree No comments Disagree Strongly disagree

Opinion-Appraisal and employee growth

47

TABLE 15 TABLE SHOWING ROLE OF APPRAISAL IN PROMOTION Appraisal helps in promotion aspects Strongly agree Agree No Comment Disagree Strongly Disagree Inference The table shows that 54% of the respondents are agree with the promotion aspects in their personal growth, 30% of the respondents are strongly agree with the promotion aspects in their personal growth, 10% of the respondents given no comment and 6% of the respondents are disagree with the promotion aspects in their personal growth. 45 81 15 09 00 30 54 10 06 00 No of respondents Simple percentage

48

FIGURE 15

CHART SHOWING ROLE OF APPRAISAL IN PROMOTION

60

54%
50

40

Percentage

30

30%

20

10

10%
6% 0 Strongly agree Agree No comments Disagree Strongly disagree

Opinion-Appraisa in employee growth

49

TABLE 16 TABLE SHOWING OPENION ABOUT JOB ROTATION Recommendation for job rotation Yes No Inference The table shows that 80% of the respondents recommended for their job rotation and 20% of the respondents are not recommended for their job rotation. No of respondents 120 30 Simple percentage 80 20

50

FIGURE 16 CHART SHOWING OPENION ABOUT JOB ROTATION

90

80
70 60

80%

Percentage

50 40 30

20%
20 10 0

Yes Job rotation

No

51

TABLE 17 TABLE SHOWING OPENION ABOUT JOB ENLARGEMENT Recommendation for job enlargement Yes No Inference The above table shows that 90% of the respondents recommend job enlargement for their personal development and 10% of the respondents did not recommend it for their personal development. 135 15 90 10 No of respondents Simple percentage

52

FIGURE 17

CHART SHOWING OPENION ABOUT JOB ENLARGEMENT

100

90%
90 80 70

Percentage

60 50 40 30 20

10%
10 0

Yes Job enlargement

No

53

TABLE 18 TABLE SHOWING RESPONDENCE IDEA FOR THEIR JOB DEVELOPMENT Ideas to recommend for their development Yes No Inference The table shows that 80% of the respondents recommended ideas for their job development and 20% of the respondents are not recommended ideas for their job development. 30 120 20 80 No of respondents Simple percentage

54

FIGURE 18 CHART SHOWING RESPONDENCE IDEAS FOR THEIR JOB DEVELOPMENT

45 40 35 30

40%

percentage

25 20 15 10 5 0 Yes No

10%

Ideas for job development

55

TABLE 19 TABLE SHOWING OPENION ABOUT THE FACE TO FACE CONTACT Face to face interaction with supervisor Yes No Inference The table shows that 70% of the respondents are agreeing with face to face interaction with the appraiser and 30% of the respondents are not agree with the face to face interaction with the appraiser. No of respondents 105 45 Simple percentage 70 30

56

FIGURE 19 CHART SHOWING OPENION ABOUT THE FACE TO FACE CONTACT

80 70 60

70%

percentage

50 40 30

30%

20
10 0 Yes No

Openion-Face to face contact

57

TABLE 20 TABLE SHOWINGS OPPORTUNITY TO IMPROVE PERFORMANCE Opportunities to improve performance Yes No Inference The table shows that 86% of the respondents are agree with their opportunities given by the organization to improve their performance and 14% of the respondents are not agree with the opportunities given by the organization to improve their performance. No of respondents 129 21 Simple percentage 86 14

58

FIGURE 20 CHART SHOWING OPPORTUNITY TO IMPROVE PERFORMANCE

100 90 80 70

86%

Percentage

60 50 40 30 20 10 0 Yes No

14%

Opportunity to improve performance

59

TABLE 21 TABLE SHOWING APPRAISAL AND ATTITUDE CHANGES Appraisal changes your Attitude and Behaviour Yes No Inference The above table shows that 70% of the respondents are agree that there is a change in their attitude and behaviour after appraisal and 30% of the respondents are disagree for the changes in their attitude and behaviour after appraisal. No of respondents 105 45 Simple percentage 70 30

60

FIGURE 21

CHART SHOWING APPRAISAL AND ATTITUDE CHANGES

80 70 60

70%

Percentage

50 40 30

30%

20
10 0

Yes Appraisal attitude change

No

61

TABLE 22 TABLE SHOWING PERFORMANCE RATING AND SALARY Performance ratings increase your salary Yes No Inference The above table shows that 78% of the respondents are satisfied with the increase of salary through performance ratings 22% of the respondents are dissatisfied with the salary provided through performance rating. 117 33 78 22 No of respondents Simple percentage

62

FIGURE 22 CHART SHOWING PERFORMANCE RATING AND SALARY

90 80

78%

70
60

Percentage

50 40 30 20 10

22%

Yes Performance rating and salary

No

63

TABLE 23 TABLE SHOWING OPENION ABOUT PRESENT APPRAISAL SYSTEM Happy with present appraisal Yes No Inference The above table shows that 76% of the respondents are happy with the present appraisal system and 24% of the respondents are unhappy with the present appraisal system. 114 36 76 24 No of respondents Simple percentage

64

FIGURE 23 CHART SHOWING OPENION ABOUT PRESENT APPRAISAL SYSTEM

80 70 60

76%

Percentage

50 40 30 20 10 0

24%

Yes No Openion-Present appraisal system

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4.2 HYPOTHESIS TESTING Chi-square test to find out the comparison between age group of the respondents and the preference of performance appraisal types. AGE GROUP SUBJECTIVE OBJECTIVE BOTH TOTAL 19-23 24-28 29-33 34-38 Above 38 TOTAL 09 09 18 06 06 06 18 27 27 21 39 114 15 42 27 27 39 150

Null Hypothesis There is no relationship between age group of the respondents and the preference of performance appraisal types. Alternative Hypothesis ` There is relationship between age group of the respondents and the

preference of performance appraisal types. Level of Significance 5% level of significance. Test Statistics X2 = (Oi- Ei)2 Ei
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Calculation Oi 9 6 9 6 27 27 6 21 39 Total Ei 1.8 1.8 5.04 5.04 31.92 20.52 3.24 20.52 29.64 (Oi- Ei)2 51.84 17.64 15.68 0.9216 24.206 41.990 7.617 0.2304 87.609 (Oi- Ei)2/ Ei 28.8 9.8 3.11 0.18 0.75 2.04 2.35 0.011 2.95 49.99

Inference The calculated value is 49.99 where as the tabulated value for (r-1) (c-1) i.e., (5-1) (3-1) for 5% level of significance is 15.507. Thus calculated value is greater than the tabulated value. So the null hypothesis is rejected and the alternative hypothesis is accepted i.e., There is relationship between age group of the respondents and the preference of performance appraisal types is accepted.

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Chapter V FINDINGS AND SUGGESTIONS

5.1 FINDINGS OF THE STUDY 88% of the respondents were male. 28% of respondents are belongs to the age group of 24-28. 68% of them having the experience of 1-10 years in the present job. 80% of the respondents prefer both the quality and target for their basis of performance appraisal. 50% of the respondents prefer the frequency of appraisal as annual. 80% of the respondents felt that performance appraisal should be based on personality traits, behaviour and results. 76% of the respondents prefer subjective and objective appraisal. 68% of the respondents said that there is no gender discrimination in performance appraisal. 54% of the respondents are agreeing with daily contact with the appraiser at the time of appraisal. 70% of the respondents are agreeing with feedback given at the time of appraisal. 66% of the respondents are agreeing with evaluation of their strength and weaknesses at the time of appraisal. 66% of the respondents are agreeing with evaluation of skill gaps.

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 56% of the respondents are agreeing with the effective training provided after appraisal review. 70% of the respondents are agreeing that performance appraisal helps in their personal growth. 84% of the respondents are agreeing with the promotion prospects through appraisal. 80% of the respondents prefer job rotation. 90% of the respondents prefer job enlargement. 80% of the respondents ready to contribute some ideas for their development. 70% of the respondents are agreeing with the face to face interaction with their appraiser. 86% of the respondents are agree that they were provided with opportunities to improve their performance after appraisal. 70% of the respondents said that after appraisal there is a change in their attitude and behaviour. 78% of the respondents are agreeing that there is an increase in their salary through performance ratings. 76% of the respondents are happy with the present appraisal system.

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5.2 SUGGESTIONS Suggestions by the Researcher The company should conduct effective training after the performance appraisal for their employees to improve their performance by identifying the gaps. The company should give combination of both subjective and objective appraisal and it should be conducted twice in a year. The appraiser should keep in contact with the employees and motivate them for their growth and also to achieve the organizational goals. When an employee is inducted in an organisation, he/she should be given proper information about performance appraisal system and its impact towards his/her job. Once an employee is evaluated, he/she has to be informed about their strength and weaknesses. So that he/she will improve their strengths and weaknesses and it also helps to increase the productivity of the organisation.

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5.3 CONCLUSIONS In this study, Performance Appraisal system of the organization was evaluated and found to be good. This project work also reveals the gaps in the existing system. By providing suitable training and development programmes, the organisation can improve the existing performance appraisal system. Overall, this project work helps to understand every aspects of performance appraisal in detail.

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