International Journal of Advanced Research in Commerce, Management & Social Science (IJARCMSS) 135

ISSN : 2581-7930, CIF : 2.965 , Volume 03, No. 01, January - March, 2020, pp 135-140

A STUDY ON PERFORMANCE APPRAISAL SYSTEM IN INDIA

Dr. Dolly Kumar

Akhil Gupta

ABSTRACT

In this dynamic and ever exponentially converting global marketplace, nothing can be measured
with accuracy because commercial enterprise international made market attributes unstable. In the
complicated enterprise world, people are the maximum treasured assets. Human sources mindset is also
volatile as subjected to many studies and situations. In such scenario, one wishes to measure how
Human Resources carry out for the purpose of reward, evaluation and knowledge. The tools &
techniques innovated for measuring human productiveness and overall performance with respect to the
required capability, intellect and revel in is below an umbrella named Performance Appraisal System. No
single Performance Appraisal device can assure the reliability of its effects. PAS can most effective be
done as independent as possible through selecting the first-rate suit method out of trending ones.
Performance appraisal manner is a continuous manner to reveal the actual overall performance of the
employee i.e., the work achieved by the employees throughout the yr. In this degree careful choice of the
best strategies of measurement together with personal statement, statistical reports, and written reviews
for measuring the performance is wanted. This paper tries to give an explanation for PAS observed in
Indian IT organizations.
The main objective of this study is to describe the overall performance appraisal practices
followed and observed in India’s largest IT agencies. In this study both primary and secondary data is
used to collect the data. A sample of 60 respondents were collected through an online questioner and get
filled by respondents who belongs to different age groups and work in different IT companies of nations
includes families, friends and neighbors living in Delhi NCR.
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Keywords: Appraise, Appraiser, Bell Curve, Feedback, iCount, Performance Appraisal.

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Introduction
Performance can be described as the real output brought to the organization when furnished
with positive roles and obligations within a given period of time. Performance appraisal is assessment of
the performance of an employee for a defined period of time. These appraisals may be utilized in
determining the pay, career prospects, and education. Performance appraisal is usually given to the
employee to the following superior special person who could observe the personnel' efforts, overall
performance and performance. T V Rao has given a formula for performance
Different Dimensions of Performance Management are:
 Output or end result size
 Input measurement
 Time dimension
Each of those dimensions must be focused in order to at ease the quality performance (of
employee) in addition to evaluate the overall performance of the worker (by organization). Appraisals are
related to rewards inclusive of hike in reimbursement, promoting which demotivates the personnel who
do not comfortable them through their performance appraisal sheets. In these phrases, Performance
Appraisal creates a poor impact on the employees in addition to toward the organizational targets.
Broadly, overall performance control, which is continuous manner ought to include performance appraisal


Assistant Professor, Department of Management Studies, ACEM, Faridabad, Haryana, India.

MBA Student, ACEM, Faridabad, Haryana, India.
136 International Journal of Advanced Research in Commerce, Management & Social Science (IJARCMSS) - January- March, 2020

to assess the personnel stand in pursuing man or woman in addition to organizational desires.
Performance appraisal absolutely serves as an aid for managers within the process of performance
control. The foremost vital components of Performance Management are Performance Improvement and
competency constructing.
The building blocks of an appraisal sheet are KPAs and KRAs. KPA method Key Performance
Area. At the outset, KPAs are huge classes of functions to be accomplished in activity through the worker
especially. Generally, they may be given in task description in an difficult manner. KRAs approach Key
Resulting Areas. Several functions of KPAs have a KRA, a much broader time period in appraisals.
Identifying KPAs and setting quantifiable targets anyplace viable is the better manner of making plans
one's performance.
Importance of Performance Appraisal or Performance Management
 Every employee receives the remarks from advanced approximately the paintings executed or
tasks finished.
 Deficiencies of personnel are known individually.
 It is the simplest distinguished tool primarily based upon which promoting, reimbursement,
transfer or layoff selections are taken.
 It allows in framing the content required for Human Resource Planning.
 Generally, personnel are advised after receiving appraisal which benefits them to carry out
higher.
 Employees are encouraged by optimistic appraisal formats.
 Flow of communique improves through the manner of Performance counseling
 It gives a terrific estimate of worker’s ability and has scope to set future goals based on one’s
capability.
 A crucial appraisal offers hazard for personnel to rectify their errors.
 It assesses the want of education or whether or not employee is eligible to get skilled.
Review of Literature
Dr. D.B. Bagul (2013) studied the attitudes of the employees closer to performance appraisal in
SEMCO ELECTRIC PVT LTD, Chakan. He suggested 360 degree comments model and decrease the
parameters in assessment with higher officers and opined that value determinations ought to be simpler
and shorter. Amie Farrell (2013) cited that the finding of the look at revealed that typical the personnel
have been satisfied with having to complete overall performance appraisal by using understanding the
blessings they obtain like rewards and promotions at NALCO.
Christoph Reichard and Jan van Helden (2015) within the research paper observed that the
variations among performance management practices inside the public and personal area are much less
stringent than expected with regard to extra or less fundamental differences between both sectors. They
discovered out difference based on 3 attributes particularly possession, funding and control. They divided
lifecycle of PMS into layout phase and use segment.
Sameera Begum, K. Sarika & G. Sumalatha (2015) as compared performance each public &
private area as a whole based on the parameters like -way verbal exchange between appraise and
appraiser, comments device wherein peers, Superiors, and Junior Employees provide comments to each
worker, adopting technology, financial and non-monetary advantages, task security, Leave Management
System as well as Process of Recruitment & Selection.
Kona Yasoda (2016) exacts the elements of an Ideal Performance Management System. The
vital factors are job descriptions, performance expectations, appraisals, compensations, disciplinary rules
and commendations. She defined globally trending fashions like Team Performance Appraisal, 360
Degree Appraisal, Rank and Yank approach, the new model and actual-time feedback.
Ramila Ram Sign & S. Vadivelu (2016) mentioned of their paper about the overall
performance appraisal in India. Retention of the personnel within the enterprise is a difficult project for the
control. Motivation plays a key function on this aspect. Performance appraisal is a tool to recognize the
personnel performance in various components. It is useful for salary increment, advertising, body of
workers retention and to boost personnel conduct. The above referred literature indicates that
Performance Appraisal is only device in assessing the employee’s obligations and responsibilities
matching their capability. An assessment has been carried out in public and personal region businesses
where private region value determinations were extra powerful.
Dr. Dolly Kumar & Akhil Gupta: A Study on Performance Appraisal System in India 137
Research Methodology
Research methodology is the specification of the method for auguring the information needed to
structure the study.
Objective of the Study
The main objective of this research is to:
 To describe the overall performance appraisal practices followed and observed in India’s largest
IT agencies.
 To study the overall performance appraisal systems implemented in Indian IT agencies
Sample Size: 60
The sample size was 60 respondents
Sampling Techniques
For this survey comfort sampling technique became applied. Sampling is possibly the perfect
method of sampling, because individuals are selected based on availability and willingness to participate.
Useful consequences may be acquired, however the results are prone to large bias, due to the fact folks
who volunteer to participate can be one of a kind from folks that pick now not to (volunteer bias), and the
pattern might not be consultant of different traits, which include age or sex. Note: volunteer bias is a
hazard of all non-possibility sampling strategies.
Collection of Data
 Primary Data: The primary information is likewise recognized as first hand records. The data
accumulated first time is referred to as primary information. This information is authentic in
nature. The primary records for these studies have a look at became carried out with help of
questionnaire. The information from 60 respondents.
 Secondary Data: The information changed into amassed from secondary resources which
include books, magazines, Google scholar, old research papers, Google web sites and Internet
and many others.
Limitations of the Study
 Time restrict changed into very small to conduct a study on an extensive idea like overall
performance management machine in India.
 Very little secondary statistics turned into to be had as now not current paintings become posted
in this topic.
 It was hard to gather number one records because respondents do not fill the data without
difficulty.
Data Analysis and Interpretation
 Correlation Analysis
Table 1: Correlation between Opinion about Performance Appraisal, Method of Performance
Appraisal Implemented and Increment Received Or/ Not after Performance Appraisal
Correlations
which method of Do you receive
In your
performance any increment in
opinion
appraisal is your salary after
performance
implemented in the performance
appraisal is?
organization? appraisal?
In your opinion performance Pearson Correlation 1 .206 -.090
appraisal is? Sig. (2-tailed) .115 .492
N 60 60 60
which method of performance Pearson Correlation .206 1 .138
appraisal is implemented in the Sig. (2-tailed) .115 .293
organization? N 60 60 60
Do you receive any increment Pearson Correlation -.090 .138 1
in your salary after Sig. (2-tailed) .492 .293
performance appraisal? N 60 60 60
138 International Journal of Advanced Research in Commerce, Management & Social Science (IJARCMSS) - January- March, 2020

Inference
 The correlation between opinion about performance appraisal and method of performance
appraisal is .206 which is positive correlation but it occurs by chance.
 The correlation between opinion about performance appraisal and increment in your salary after
performance appraisal is -.090 which is a negative correlation but it occurred by chance.
Table 2: Correlation between opinion about performance appraisal helps to provide an
atmosphere, performance appraisal has people set and achieve meaningful goals and
performance appraisal gives constructive criticism in a friendly and positive manner
Correlations

appraisal gives constructive

Do you think performance

Do you think performance

atmosphere where all are
encouraged to share with

criticism in a friendly and

appraisal has people set
and achieve meaningful
performance appraisal

one another burden?

helps to provide an

positive manner?
Do you think that

goals?
Do you think that performance appraisal helps Pearson Correlation 1 .102 .425**
to provide an atmosphere where all are Sig. (2-tailed) .440 .001
encouraged to share with one another burden? N 60 60 60
Do you think performance appraisal has people Pearson Correlation .102 1 .274*
set and achieve meaningful goals? Sig. (2-tailed) .440 .034
N 60 60 60
Do you think performance appraisal gives Pearson Correlation .425** .274* 1
constructive criticism in a friendly and positive Sig. (2-tailed) .001 .034
manner? N 60 60 60
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
Inference
 The correlation between performance appraisal helps to provide an atmosphere and
performance appraisal has people set and achieve meaningful goals is .102 which is positive
correlation but it occurred by chance.
 The correlation between performance appraisal helps to provide an atmosphere and
performance appraisal gives constructive criticism in a friendly and positive manner .425 which
is positive correlation which is a low correlation.
Table 3: Correlation between opinion about performance of employees improves after process of
performance appraisal, performance appraisal improves motivation and job satisfaction and
partial behaviour of top-level management towards performance appraisal
Correlations
management partial
appraisal improves
motivation and job
Do you think the
performance of

in performance
Is the top-level
improves after

performance

performance

satisfaction?
Do you think
employees

process of

appraisal?

appraisal?

Do you think the performance of Pearson Correlation 1 .201 .222

employees improves after process of Sig. (2-tailed) .123 .088
performance appraisal? N 60 60 60
Do you think performance appraisal Pearson Correlation .201 1 -.108
improves motivation and job Sig. (2-tailed) .123 .412
satisfaction? N 60 60 60
Is the top-level management partial in Pearson Correlation .222 -.108 1
performance appraisal? Sig. (2-tailed) .088 .412
N 60 60 60
Dr. Dolly Kumar & Akhil Gupta: A Study on Performance Appraisal System in India 139
Inference
 The correlation between performance of employees improves after process of performance
appraisal and performance appraisal improves motivation and job satisfaction .201 which is
positive correlation of low order
 The correlation between performance of employees improves after process of performance
appraisal and top-level management partial in performance appraisal.222 which is a positive
correlation of low order
Table 3: Correlation between performance appraisal system implemented in respondent’s
organization and the opinion about the performance appraisal system of your organization is
related to which type.
Correlations
Do you think performance In your opinion, the
appraisal system of your performance appraisal system
organization is related to of your organization is related
which of the following? to which of the following?
Do you think performance Pearson 1 .240
appraisal system of your Correlation
organization is related to which of Sig. (2-tailed) .065
the following? N 60 60
In your opinion, the performance Pearson .240 1
appraisal system of your Correlation
organization is related to which of Sig. (2-tailed) .065
the following? N 60 60

Inference
 The correlation between performance appraisal system of your organization and the
performance appraisal system of your organization is related to which of the following .240
which is a positive correlation of low order
Findings
 In above desk we are able to see the percentage of age hole among the folks that crammed the
questioner. Most of the person belongs to age among 20-30 years and least belong to age
group forty one-50
 Out of the 60 respondent 19 respondents have said overall performance appraisal is all
approximately process satisfaction of personnel and least respondents are in want assessment
of personnel. A performance appraisal evaluates an employee’sabilities, achievements,
motivation and increase.
 Out of the 60 respondent 19 respondents have said overall performance appraisal is all
approximately task pleasure of employees and least respondents are in desire assessment of
employees. A overall performance appraisal evaluates an personnel abilities, achievements,
motivation and boom.
 It is clear from the remarks of respondents that they get hold of an increment in the salary after
overall performance appraisal. On overall performance appraisal 70% of employees got
increment on overall performance appraisal. This suggests that overall performance appraisal is
vital for the growth and improvement of employees in an organisation.
 Above desk suggests that out of forty one responds have been agreed to that performance
appraisal create atmosphere that inspire to percentage with one another burden and remaining
19 respondents never stated that that performance appraisal facilitates to provide an ecosystem
wherein all are encouraged to proportion with one another burden
 Out of 60 respondents 42 agreed to yes that overall performance appraisal set and reap
meaning full dreams while 18 ultimate said that overall performance appraisal do now not set
any meaningful desires
 In above feedback out of60 respondents forty seven have been in favor of performance
appraisal construct a complaint in a pleasant and tremendous manner whilst ultimate were do
now not in the favor.
140 International Journal of Advanced Research in Commerce, Management & Social Science (IJARCMSS) - January- March, 2020

 It is apparent from the responds comments that pinnacle level management is partial in
performance appraisal, 62% are in desire and 38% of employees said pinnacle-level
management are not partial
Conclusion
With the demanding situations brought down with the aid of financial liberalization, even HR
techniques have to fit the various socio-economic conditions for this reason. In gift Indian IT companies
the HR practices revolve round hiring new talent and preserve current first-class expertise. Performance
appraisal is a critical and important device to maintain the existing employees. Appraisal machine
accompanied in HCL in rating out of 10 is good due to the fact the best increment is 50% in primary pay
for exquisite performers, up to mid-senior level. The least performer would also have an increment of
₹1000 of Gross pay in HCL. HCL personnel are benefitted in terms of price measurement. Infosys
emphasizes on speak and remarks which makes the subculture more communicative. Focus dimension
is given more priority right here i.E. Focus on worker welfare inside the premises of enterprise. TCS
employees would constantly be craving to fall in A category to relaxed maximum increment. D category
personnel might be demotivated as they want to look ahead to one more financial yr for increment. TCS
specializes in enter in addition to output dimensions via evaluation of intention sheet.
Suggestions
 The study undertaken brings a few thrilling end result.
 Training the appraises: it is proposed that appraiser be taught for clear information of the
machine and its objective and also advised to be honest, fair, just, unbiased in appraising the
appraises.
 Factors/trends of assessment: its miles proposed that appraise evaluated on above
factors/trends receive suitable remark or justification for being given one-of-a-kind quantitative
grade.
 Greater readability must be has to there in terms of task obligation. This is possible whilst the
appraisal is completed on the idea of the outline.
 In the corporation, performance appraisal is completed on an annual basis which should be
accomplished quarterly to make it greater effective.
 Based at the above an open appraisal system is usually recommended
 In an open appraisal the worker would come together to set the targets, to apprehend the
mutual expectations and support to be supplied by using the appraiser to the worker for
accomplishing together familiar desires/objectives. Through this system of placing targets the
interpersonal relationship among the appraiser and the employee could improve. The open
appraisal machine reduces the whims and fancies of the appraiser. It promotes end result-
orientation as it's far based on overall performance rather than on personality based totally
appraisal.
References
 Amit Hole and Dr. Ashutosh Misal (2013): “Analysis of Performance of Employees in Public
Sector in Comparison with Private Sector General Insurance Companies”, Abhinav International
Monthly Refereed Journal of Research In Management & Technology, ISSN – 2320-0073
Volume II, April’13.
 Christoph Reichard and Jan van Helden (2015): “Commonalities and differences in public and
private sector performance management practices; a literature review”: Paper presented at
Panel G 102 Public Accounting and Accountability of the annual IRSPM Conference,
Birmingham, UK, 30 March-1 April 2015.
 D. B. Bagul: “Study of Employee’s Performance Appraisal System”, Scholarly Research Journal
for Humanity Science & English language, ISSN: 2348-3083.
 Dictionary of Business : Indian Edition, 2004, Oxford University Press
 Performance Management and Appraisal Systems: HR Tools for Global Competitiveness, T V
Rao, 2014, Sage Publications.
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