1.

INTRODUCTION
1.1 PERFROMANCE REVIEW SYSTEM

A performance review system is a regular review of an employee's job performance and

overall contribution to a company. Also known as an "annual review," "performance review
or evaluation," or "employee appraisal," a performance review system evaluates an
employee’s skills, achievements and growth, or lack thereof. Companies use performance
review system to give employees big-picture feedback on their work and to justify pay
increases and bonuses, as well as termination decisions. They can be conducted at any given
time but tend to be annual, semi-annual, or quarterly. Performance review system, has three
basic functions:

(1) To provide adequate feedback to each person on his or her performance.

(2) To serve as a basis for modifying or changing behaviour toward more effective working
habits; and

(3) To provide data to managers with which they may judge future job assignments and
compensation.

According to Dale Yoder, ''Performance review system includes all formal procedures used
to evaluated personalities and contributions and potentials of group members in a working
organization. It is a continuous process to secure information necessary for making correct
and objective decisions on employees."The performance review system concept is central to
effective management. Much hard and imaginative work has gone into developing and
refining it. In fact, there is a great deal of evidence to indicate how useful and effective
performance review system is. Yet present systems of performance review system do not
serve any of these functions well. As it is customarily defined and used, performance review
system focuses not on behaviour but on outcomes of behaviour. Thus, while the system
purports to appraise results, in practice, people are really appraised on how they do things—
which is not formally described in the setting of objectives, and for which there are rarely
data on record.

1.2 OBJECTIVES OF PERFORMANCE REVIEW SYSTEM:

 To promote the employees, based on performance and competence.

  To identify the requirements for training and development of employees.

 To take a decision regarding the hike in employees’ pay, incentives etc.

 To facilitate communication between superior and subordinate.

 To help employees to understand where they stand in terms of performance.

1.3 Advantages of Performance Review System

1. A systematic performance review system helps the managers to properly

identify the performance of employees in a systematic manner and their areas of talent
and areas where they are lacking.

2. It helps the management to place the right employees for the perfect jobs
depending on their skills in particular areas.

3. Performance review system helps employees identify the areas in which they
need to improve. The managers can also use this information to provide constructive
criticism of the way employees perform their work.

4. Potential employees are often given promotions based on or the results of

performance review systems. People who have high ratings get promotions. They can
also transfer or demote employees if they do not perform up to the expectations of the
managers.

5. Keeping extensive records of the performance review system will give

managers a very good idea of which employees have the highest growth rate and
which ones have a declining rate of performance.

Disadvantages of Performance Review System

1. If the factors being used in the performance review system are incorrect or not
relevant, the appraisal will fail to provide any useful or effective data.

2. Sometimes, equal weightage is not given to important factors when performing

an appraisal.
 3. Some objective factors are very vague and difficult to gauge like attitude and
initiative. There is no scientific method to measure these factors.

4. Managers are sometimes not qualified enough to correctly assess the

employees and their abilities. Thus, these mistakes can be very detrimental to the
growth of the company.

1.4 ELEMENTS OF PERFORMANCE REVIEW SYSTEM

There are four essential elements which must be present in order to work effectively
in any performance management framework. They are as follows:

Element 1 – Purpose is well defined

Element 2 – Outcomes are well designed
Element 3 – Accountability is nurtured
Element 4 – Teams are your leverage point.

Element 1 – Purpose is well defined.

The first element is that the leaders can describe why we are here at every level of the
hierarchy. They can create a clear and explicit context to the work to be done. The Oxford
English Dictionary defines Intent as "the reason why something is done or produced or for
which there is something" The purpose is at the core of why the organization. In the new
performance world, the difference between performance-supporting organizations and those
that will not be the clarity of purpose shared among employees, and how leaders at all levels
embody, interpret, and cascade it through the organization.

Element 2 – Outcomes are well designed.

Leading performance is all about results. It has always been. The word results are used more
frequently, and I hope it will not reach the point where it is overused or not properly applied.
The outcomes represent the culmination of our commitments. Outcomes prove you make a
difference. Simply put, results sit within the shadow of our purpose, and you know that results
are well-designed when you can answer the question ' did you do it with a simple ' yes ' or '
no? ' ' Effective management of performance involves leaders at all levels to put real work into
planning results, being transparent about what needs to happen.
Element 3 – Accountability is nurtured.

Accountability means being responsible for something and eventually being accountable for
your actions. Accountability is difficult and needs to be fostered from the early career stages.
The first level of accountability is for you, and the results you need to deliver. The next step
comes when you are responsible for someone else's job. The concept of accountability stops
right there in organizations without a performance culture; at a point where people exert direct
control. People are nurtured in organizations with an effective performance framework to
move to a higher plain, where they are willing to hold themselves accountable for things they
don't control and for people they do. People are comfortable with horizontal relationships in
these organizations, with paradox and ambiguity, and they spot opportunities beyond their
direct control and set about aligning with peers to respond.

Element 4 – Teams are your leverage point.

It is high time to challenge the premise that performance management systems need to focus
on target setting and evaluation and feedback between managers and individual employees.
Now, we've said it before, ' teams are the portals of organizational culture, ' and almost all
work is done in teams, so teams are the primary leverage point for successful performance
management. Here's the new solution. Every 100 days or so every manager spends four hours
in a structured team performance meeting with his team. And, if they use the formula of our
team performance meeting, they will have a committed team aligned to their purpose, clear
on results and ready to take responsibility not only for their respective jobs, but for things and
people that they cannot control.

All of the staff should be given an annual performance assessment. This year-end employee
appraisal is a good way for your business to be able to assess an employee's overall work ethic
and value. Each year-end analysis will have key points to include helping you to better assess
your workforce.

The three things that you must include in your performance review system are:

 PERFORMANCE ANALYSIS:
As a boss or owner, you are charged with determining employee performance. The evaluation
should include a complete analysis so that you both understand how well the employee
measures up to company standards.

 EMPLOYEE POTENTIAL

Every employee's capacity must be measured. This will allow both you and the employees
within the company to realize their potential. Employees who meet or exceed expectations can
assume more responsibility where the need arises. Another way in which a worker can find
trust in their results and function to even higher standards is to evaluate the employee’s
capacity. As a result, work ethics can be improved by letting an employee realize they have
potential for growth within the company.

 EMPLOYEE DEFICIENCIES

A year-end analysis must also address an employee's shortcomings. These will be

shortcomings the employee has to correct in order to meet company standards. Shortcomings
are often followed by steps that can be taken to support the employee in addressing their
problem areas. Training or assistance may be required, and providing accurate descriptions of
problems can allow the employee to correct the issue more quickly. Employee reviews are an
integral part of any company. It alerts workers to potential growth within an organization as
well as to their review of overall performance. You will strengthen your business with a
proper performance evaluation while helping employees correct performance mishaps that
may hinder their chances of raising or promotion. To start evaluating your employees, create
your own assessment form today.

1.5 PURPOSE OF THE APPRAISAL PROCESS

The purpose of the appraisal is to achieve better employee work performance. This will be
achieved by a good evaluation process ensuring the following elements are included:

1. Organizational priorities are related to the individual job goals.

2. The standards of an employee's success from the organization are discussed.

3. Success is measured to goals, and the employee provides feedback.

4. The employee is advised on how to achieve job goals / requirements.

5. The strengths and weaknesses of the employee are analyzed.

6. This defines the types of learning activities that might help the employee make better use of
his skills and thus improve performance in his current job.

7. For the employee, performance standards are explained through the creation of a contact
system.

8. The employee who tried to perform well receives encouragement.

9. Employees get the chance to officially show their career aspirations.

1.6 FEEDBACK INFRA PVT LTD

Feedback Infra is India's leading infrastructure services company, with over 9,500
employees and associates. It has executed projects across 28 Indian states and 37
countries across Africa, Middle East and Asia. Feedback Infra works across
transportation, energy and urban infrastructure and provides consulting services for
new and existing projects, manages their design and construction, and operates and
maintains infrastructure assets. It serves clients across the Union and State
governments, private developers as well as banks and financial institutions. Feedback
Infra, while privately held, is backed by its three shareholders – ADV Partners, IDFC
Bank Ltd and HDFC Ltd.

Feedback Infra’s subsidiaries are:

 Feedback Highways OMT Pvt Ltd, which is India's largest highway tolling,
operations, and maintenance company.
 Feedback Power Operations & Maintenance Services Pvt Ltd which provides
O&M to power plants in India and abroad.
 Feedback Energy Distribution Company Ltd, which distributes electricity to
more than half a million customers across Odisha and has achieved India’s
steepest reduction in AT&C losses in the last four years, while working in
predominantly rural areas.

Together, all these entities help achieve its core purpose: By Making Infrastructure
Happen, Feedback Infra remains committed to make a difference to the communities
and countries.

LEADERSHIP TEAM

Feedback Infra has a league of young and dynamic leaders who have risen through the
ranks within the organization and are fully capable of taking your infrastructure
projects from concept through to commissioning stage.

All the divisions and entities of the Feedback Infra Group are led by respective
captains while the Board of Directors oversee strategic and operational aspects of the
Group, which is expanding across continents.
ENERGY

P. Ramesh

Group Managing Director

ENERGY ADVISORY

Ravi Kathpal

CEO - Energy Consulting Services & Stressed Asset Management Group

TRANSPORTATION

Vijay Kumar Ganju

Head Operations - Transportation

WATER

Sandeep Suresh Dhamne

Director - Water and Master Planning Business

POWER ONM

S K Roy

Principal Advisor

OMT - HIGHWAYS

Pardeep Goyal

COO - Feedback Highways OMT

HIGHWAYS INDVE

Mohit Sinha

CEO -Highways IndVe

NETWORK SERVICES

Anurag Raizada
Director - Network Services

INTERNATIONAL ENTITIES

Varun Minocha

Managing Director - Dubai Consultants

Narayan Bhat

President Director - PT Feedback Infra, Indonesia

Abhishek Yadav

CEO - International Business – Africa Region

Narayan Bhat

Chief Operating Officer - Feedback Infrastructure Services Nepal Ltd.

SERVICES

With a mission of "Making Infrastructure Happen", Feedback Infra offers an integrated suite
of services in energy, transportation, real estate and social infrastructure sectors.
A complete focus on infrastructure development enables Feedback Infra to provide seamless
services through a multidisciplinary team that brings unmatchable skills and deep industry
knowledge.
 Operations and Maintenance
 Advisory & Transactions
 Project Management
 Architecture
 Design and Engineering

SECTORS

At Feedback Infra, we assist public and private sector organisations as well as bilateral and
multilateral agencies in planning and implementing large infrastructure projects across
Energy, Transportation, Real estate and Social Infrastructure sectors.
We have successfully completed over 800 projects extending across highways, expressways,
roads, bridges, water supply, sewerage, sanitation, wastewater management, infrastructure
development, hospitals, aviation, ports, tankage terminals, industrial estates, business districts,
integrated townships, telecommunication, power generation and distribution as well as
industrial projects.
What has increased our impact on our engagements is our ‘Partnering’ approach that addresses
client needs by working closely with them. Whether our client is a state government
department, public sector institution, international development agency, a top corporate group
or a startup company, our service is tailored to meet the specific requirements that can meet
the objectives of our client in a timely manner.
We believe that we have a leadership position in delivering infrastructure projects due to our
superior appreciation and understanding of the Indian marketplace and our singular focus on
the infrastructure sector, which is complemented by our experience, expertise and global
perspective.
 Transportation
Feedback's Transportation sector specialists advise government sector clients, private
developers, multilateral agencies, and other stakeholders in strategising, developing, designing
and implementing all types of non-highway infrastructure projects. The division caters to
varied sectors including Railways, Metro Rail, Airports, Ports, Logistics, Irrigation and
Waterways.
The division advises central & state government agencies, private developers, multilateral
agencies, lenders, regulators, and other stakeholders in strategizing, developing, designing,
implementing, and designing all types of highway infrastructure projects. The division is
perhaps the only team in the country which shares the risks and rewards on time and cost
optimization. The division manages this through 3 independent SBUs — Highway
Construction Services, Highway Technical Services and Advisory.
Both our Transportation and Highways Divisions are ISO 9001, ISO14001 and OHSAS18001
certified by Vincotte.

PORTFOLIO OF SERVICES

 ROADS & HIGHWAYS

 SPECIAL STRUCTURES
 RAILWAYS
 METRO RAIL
 AIRPORTS AND PORTS
 LOGISTICS

REPRESENTATIVE CLIENTS
  Energy
Feedback Infra's Energy sector team advises government utilities, private developers,
investors, and regulators across the value chain in fuels, generation, transmission, distribution
and IT. The division is empaneled with the Ministry of Power, Power Finance Corporation,
and National Solar Mission, Bureau of Energy Efficiency, and other government agencies for
undertaking specified consultancy services. Its Gurgaon and Mumbai offices have been ISO
9001:2008 certified (by Moody International) for providing Advisory, Consultancy and
support services to the Energy Sector in the areas of IT, Project Assessment, Bid Management,
Project Management, Quality Assurance, Monitoring, and Energy Efficiency consulting and
services.
We have successfully completed over 800 projects extending across highways, expressways,
roads, bridges, water supply, sewerage, sanitation, waste water management, infrastructure
development, hospitals, aviation, ports, tankage terminals, industrial estates, business districts,
integrated townships, telecommunication, power generation and distribution as well as
industrial projects.
What has increased our impact on our engagements is our 'Partnering' approach that addresses
client needs by working closely with them. Whether our client is a State government
department, public sector institution, international development agency, a top corporate group
or a start up company, our service is tailored to meet the specific requirements that can meet
the objectives of our client in a timely manner.
We believe that we have a leadership position in delivering infrastructure projects due to our
superior appreciation and understanding of the Indian marketplace and our singular focus on
the infrastructure sector which is complemented by our experience, expertise and global
perspective. The division is ISO 9001, ISO14001 and OHSAS18001 certified by Vincotte.

PORTFOLIO OF SERVICES

 POWER GENERATION
 POWER TRANSMISSION
 POWER DISTRIBUTION
 COAL AND MINES
 OIL AND GAS
 HYDRO POWER

REPRESENTATIVE CLIENTS
  Realty and social infrastructure
Realty & Social Infrastructure Division (RSID) provides the entire gamut of services for the
professional management of projects of varying size and complexity. The division’s integrated
package of services spans across water & sanitation, special economic zones, factories,
industrial estates, housing, townships, IT Parks, malls, multiplexes, hotels, hospitals, offices,
and buildings. The division offers an integrated package of advisory, planning & engineering,
and project management services in effective partnership with the client— ensuring that the
deliverables are of desired quality, time, and within the stipulated cost. The division is ISO
9001, ISO14001 and OHSAS18001 certified by Vincotte.

PORTFOLIO OF SERVICES

 HOUSING AND TOWNSHIPS

 RETAIL AND ENTERTAINMENT
 HOSPITALITY & HEALTHCARE
 URBAN INFRASTRUCTURE
 SPECIAL ECONOMIC ZONES
 WATER & ENVIRONMENT
 COMMERCIAL & INDUSTRIAL INFRASTRUCTURE

REPRESENTATIVE CLIENTS
1.7 PERFORMANCE MANAGEMENT AT FEEDBACK INFRA.
An organization’s strategy is a map that helps each employee in the organization to recognize
the purpose of their activities and the expectations placed on them.

Each successful strategy must be accompanied by a clear implementation plan, defining

responsibilities and indicators against which to measure progress.

 Assistance in formulating the operational strategy of the organization or its activity in

developing a system of strategic objectives according to the balanced
scorecard methodology.
 Development and implementation of a complex organisation performance
measurement and management system
 Performance evaluation indicator systems evaluation and system selection
 Establishment of operational performance indicators for different levels of the
organisation’s objectives
 Assistance in drafting requirements applicable in choosing and implementing the
solution designed to calculate and manage operational performance indicators.
 Analysis of performance indicator values and opportunities for improvement using
the Fountainhead.

What is Perform?

Fountainhead is a management system developed by Feedback Infra to make the

organization more efficient.
The goal of this system is to increase employee efficiency and productivity by changing
behaviour and using specific tools and methods, while embedding an empowering
organizational culture. The project focuses on employee development, performance
management, problem solving, and employee engagement.
Management link performance parameters to business imperatives so that the results
are quantifiable and are aligned to achieve organizational growth and support the
company’s values and purpose. This facilitates the translation of the business plans to
action steps via Goal setting workshops. This also supports business in the design and
deployment of the Balance Scorecard. This role further includes cascading the goals
and metrics to the workforce to ensure that each employee understands their role in
achieving the organization’s goals.

In addition, their focus is on hand-holding the business through the entire

implementation of the process. In this area, their work includes managing
communication, whether in the form of creating a simplified performance
management guidebook or facilitating a communication workshop for employees.
They also assist in the moderation and normalization process, to validate the
consistency of assessment systems and to present a common understanding of
performance standards across the organization.

To equip managers with the ability to provide quality feedback and ensure effective
implementation of the performance management system, they have developed a
customized feedback certification program ‘Performance Conversation’ aimed at
building managerial capability.In conjunction, they design talent management
programs for high potentials, and undertake coaching and mentoring, as well as
succession planning exercises. They further extend support to their clients for linking
performance to rewards, in the form of variable pay plans, incentive schemes,
increment policy, promotion policy etc.

Feedback Foundation

 Rural Sanitation: Key Resource Center (KRC) for the Ministry of Drinking
Water and Sanitation for building capacities of other national and state
resource centers/institutions and enabling the country to attain the national
target of becoming Open Defecation Free.
 Urban Sanitation: Supports Smart Cities to make them liveable and clean.
Working in 5 Smart Cities across India to eliminate open defecation and
 promote decentralized solid waste management. Currently working in slums
and wards across 5 cities covering over 100,000 households.
 CSR: Executing a country-wide project in school sanitation for ONGC.
Working with InterGlobe Hotels to improve the quality of life of residents of 8
slums around Aerocity, New Delhi
 R&R: Facilitating the design and implementation of a Rehabilitation &
Resettlement plan for 285 Project Affected families (PAFs) across 3 villages
in Lanjigarh, Odisha, through a community-led approach.

CREATING GREEN VILLAGES!

Feedback Infra has adopted Bhond Village, Mewat (Nuh District) in Haryana and has been
working to transform it into a model village for sustainable development and social inclusion.

Bhond Village has been bestowed with the coveted Platinum Rating by Indian
Green Building Council. This recognition comes after a rigorous evaluation and
reinstates the commitment of the people of the village to make a difference to their
own lives!
 2. RESEARCH METHODOLOGY

Research is the creative work undertaken on a systematic basis to increase the store of
knowledge, including knowledge of human, culture and society and the use of this store of
knowledge to devise a new application.

Research methodology is the systematic, theoretical analysis of the method applied to a field
of study. It comprises the theoretical analysis of the body of the methods and principles
associated with a branch of knowledge.

According to the business dictionary, it is a process used to collect information and data for
the purpose of making business decisions. The methodology may include publication research,
interviews, surveys, and other research techniques and could include both present and
historical information. The methodology section answers two important questions: How was
the data collected? How was it analyzed?

The objective of the study was to identify the effect of performance review system on
employee performance in Feedback Infra Pvt Ltd.

2.1 OBJECTIVES

The specific objectives of the study are:

1. To analyse how performance review system is carried out in Feedback Infra Pvt Ltd.
2. To determine the consequences after performance review system is done.
3. To study whether performance review system is influencing employee performance.
4. To identify the benefits associated with performance review system at Feedback
Infra.

2.2 HYPOTHESIS

H (1) - Performance review system has an impact on employees’ performance at Feedback

Infra Pvt Ltd

H (0) – There is no significant relationship between performance review system and

employee performance.
2.3 LIMITATIONS

Businesses use performance assessments as tools to determine how employees effectively

achieve their objectives, increase the scope of their work and communicate with others.
Managers can choose from a variety of assessment schemes and these can prove to be very
effective in gaging employee performance when used correctly. But performance evaluation
programs are not without challenges and disadvantages.

 Limited Perspective

Traditional performance assessment tools involve only the manager's view of the
performance of his subordinate. If the manager oversees several direct reports and also
reports to his own supervisor, he probably has a limited amount of time to actually monitor
his employee in action and see how he overcomes problems and roadblocks in order to
achieve goals and how effectively he achieves them. Many companies overcome this
drawback by employing peer review-based assessment tools that take into account the work
relationship between the employee and customers, coworkers, vendors, direct reports and
supervisors. By collecting the views of these other frequent employee contacts, the scope of
the evaluation widens allowing for more objective assessment of performance.

 Erosion of motivation
Companies that use performance assessments as the only tool when pay-out increases
run the risk of adding conflict between supervisors and subordinates and eroding the
motivation of employees to improve. The conflict arises when workers want the
greatest possible increase in pay, but managers often have limited funds for such
increases. The manager wants the subordinate to make the area weaker of his
performance. Improvement allows the manager and employee to work together, but
workers often concentrate on their positive habits rather than trying to improve their
weak points when compensation is tied to performance review systems. This can lead
to severe arguments about the performance and allocated pay increases, eroding the
morale of the employee and the manager-subordinate connection.

 Time consuming
Many assessment tools which offer the most objective view of the performance of an
employee are also the most time consuming. One of the most popular peer review
 models, the 360-degree feedback assessment model, requires assessor training and
careful design of custom survey questions. The evaluation process itself can take up
two or more weeks at a time, depending on the size of the company.

 Defective rating or Subject to appraiser bias

Managers are bringing their own prejudices and abstract ideas into the assessment
process. Bias can also skew the outcomes of the more objective peer review-based
assessment schemes, causing employees to lose faith in the system and not see them
as credible performance measures. Employees need to see these systems as fair and
just for proper functioning of the process. Managers avoid giving negative remarks or
poor ratings as employees may not always take a positive view of feedback. The
managers attempt to avoid possible future conflicts or arguments with staff. In
addition, they will also fear employee non-cooperation in the future. It results in
managers giving favorable ratings so that there is no impact on the work environment
and relationships. In addition, the personal relationship the evaluator has with the
employee also affects the process. Sometimes, managers can award the favourite
employees higher ratings. They may also give the deserving employees low rating due
to envy or fear that they might be replaced by such employees.

 Inexperienced evaluators
Occasionally, professional or qualified managers may not perform appraisals. The
evaluation process may not be properly conducted due to lack of assessor knowledge
and experience. Management mind set also influences the assessment process. Despite
good performance from employees, managers who are strict and have high
expectations from its employees that give low ratings to all employees. The lenient
managers give every employee a high rating regardless of their performance. Such
assessments are not valuable to the organization or to its employees.
 Difficulty in selection of appraising method
There are a variety of methods for evaluating employee performance. The assessment
technique must be selected based on organizational nature, number of employees,
work policies, budget etc. Evaluators, however, may not always select the appropriate
method of evaluation for the organisation. They choose a simple, less time-consuming
assessment approach to reduce workload.
 Central tendency
Managers tend to give workers an average rating, regardless of their actual results. It
means that both, the underperformers as well as the over performers are given an
average rating. Managers generally resort to this type of behaviour to avoid
disappointing other employees, future conflicts, jealousy and tension within the team.
But it is unfair to those workers who are deserve higher ratings but are marked low.

 Lack of participation from employees:

Employees resist performance assessment system because they consider that the entire
appraisal process is solely for pointing out their errors and criticizing their
performance.

 Inadequate attention to HRD

The main purpose of the assessment system is to evaluate employee performance at
current job so that they can be motivated and further developed. However, the
managers may not actually use the performance reports to attain this goal. Such
reports are written by the managers only to meet their responsibilities and company
policy obligations. They may not always find time for analyzing actual performance
of employees and develop their abilities.

2.4 DATA COLLECTION

In an attempt to understand and study the effect of performance review system on
employees’ performance, the following approach was adopted initially, in order to
understand the structure and basis of the study, relevant literature, publications and
studies were reviewed in order to get an in-depth understating on the relationship
between the two major variables- performance review system and employee
performance.

Through this research two methods of data collection can be followed:

1. Primary Data
2. Secondary Data
 PRIMARY DATA COLLECTION

Primary data is the direct information gathered by the researcher from direct sources, using
methods like surveys, interviews or experiments. It is gathered in view of research project in mind
from essential sources. It is the first hand collected data from the respondents.

To understand the effect of performance review system on employee performance, the

primary data was collected in two ways:

 A survey questionnaire (Google forms) was circulated to the respondents

 Face to face interview (semi structured interview wherever possible) was organised
to gather the required information on performance review system and its effect on
employee performance.

SECONDARY DATA COLLECTION

Secondary data is the information that has recently been accumulated and can be used by
researchers for their research work. Secondary data is very useful and it is an important part
in the research work and it is very beneficial for the researchers.

Advantages of secondary data:

 It is time saving
 It is readily available
 It is less expensive and it saves efforts
 It is economical
 It is very helpful because it becomes easy in understanding the problem
 It gives a basis for comparison for the data that is gathered by the researcher.

Disadvantages of secondary data:

 Secondary data may be outdated

 Secondary data is not accurate
 Sometimes the information lacks or does not address exact questions of concern.
Secondary data was obtained through newsletters, research papers, reports and data
statistics.

2.5 RESEARCH INSTRUMENTS

The research instrument used to understand the consumer behaviour was a
questionnaire which included a total of 14 close ended questions and one open ended
question.
Responses were received from a total of 101 respondents.

2.6 STATISTICAL TOOLS, TABULATION AND REPRESENTATION.

The survey forms were distributed to the respondents online and was analysed.
The answers to the response will be presented in the form of a pie diagram to reveal
the percentage of people’s views on the topic of study.
And the numbers and figures were tabulated.

2.7 SAMPLE SIZE

To understand the effect of performance review system on employee performance, the
study and responses were received from employees working at Feedback Infra Pvt Ltd
from all of their branches.

Sampling technique adopted-

2.8 SCOPE OF THE STUDY

The scope of this study is to understand the impact of performance review system on
employees’ performance at Feedback Infra Pvt Ltd. It studies how performance
assessment in cerebral consultancy is performed, and the effects on its employees.
This research further determines how the employees benefit from this system and
what their recommendations on improving this system within the consultancy. The
sample size taken is 100 respondents that would fetch primary data backed by
secondary data further in the in the study. It also gives staff a better understanding of
their roles and responsibilities. It also improves confidence by understanding
strengths when defining the training requires to strengthen weaknesses. The
performance evaluation also aims at strengthening the working relationships and
coordination between managers and subordinates. Evaluation process improves
alignment with the organizational objectives; Builds workers into potential bosses. It
also helps with decisions regarding staff such as promotions or bonus distribution.
Ultimately, performance evaluation provides time for self-reflection, self-assessment,
and the setting of personal goals.
This study provides employee feedback on assessments and thus serves as a reflection
mirror for personal and career development. It also encourages management to make
effective decisions against drawbacks for the well-being of the advancement of the
employee to improve the performance of the work of the employee as it enables
management to understand and use their full potential to fulfil the mission of their
business. This study is helping to know the appraisal system's level of importance.
Performance review system is basically a regular review of an employees’ job
performance and an overall contribution to the company. Therefore, this study also
determines the consequences and challenges faced by the employees after
performance review system is done.

2.9 SIGNIFICANCE OF THE STUDY.

The focus of this study is to understand the effect of performance review system on
employee performance at Feedback Infra Pvt Ltd. This study helps to find out how
effective is the performance review system of the company and what are the effects of
this system on employee performance are determined. It also studies how often
performance review system is being conducted at the company and what remedial
measures are taken after this process. Further, it determines the transparency of this
system and how constructive criticisms are given in the company, whether positively
or negatively.
The core focus of this study is to find out the positive and negative effects of
performance review system on employee performance. Through the performance
review system process, what is the company trying to achieve is determined.
Reviewing performance, training and development needs, basis for disciplinary
proceedings, promotion and upgrading, reward and incentives are few of the goals
that the company strives to achieve through performance review system.

2.10 VARIABLES.
The following variables were used and studied throughout this research.
  Independent variable: Performance review system

 Dependent variable: Employee performance

REVIEW OF LITERATURE

The literature review is a critical review of the existing research which is related to this topic.
If you need to write an undergraduate thesis, you may need to start by writing a review of the
literature. A literature review is a search and evaluation of the literature available in your
chosen topic or subject area. It records the state of the art in relation to the subject or topic on
which you are writing. A literature review is a survey of a particular topic from scholarly
sources. It provides an overview of current knowledge, enabling you to identify relevant
research theories, methods, and gaps. Collecting, reviewing and examining publications (such
as books and journal articles) that contribute to your research question require performing a
literature review. A literature review has four main objectives:

 it surveys the literature in your chosen area of study

 it synthesizes the literature information into a summary.
 It critically analyzes the information gathered by identifying gaps in current
knowledge
 By demonstrating limitations of theories and viewpoints; and by formulating areas
for further research and review of controversial areas.

A review of the literature shows your readers that you have an in-depth understanding of your
topic; and that you understand where your own research fits in and adds to an existing body
of agreed knowledge. A good review of the literature not only summarizes sources – it
analyzes, synthesizes and critically evaluates them to give a clear picture of the state of
knowledge on the subject.Here’s another way of describing those four main tasks. A
literature review:
  Shows a familiarity with a body of knowledge and establishes the credibility
of your work
 summarizes prior research and explains how your project is connected to it
 Integrates and summarizes what is known about a topic
 Shows that you have learned from others and that your research is a point of
departure for new ideas.

Angelo S. De Nisi and Robert D. Pritchard (2006) define performance review system as a
separate, formal, organizationally approved event, usually not occurring more frequently than
once or twice a year, which has clearly stated performance dimensions and/or criteria that are
used in the evaluation process. It is also described as a formal process of employee
monitoring which usually involves the evaluation of performance based on the judgments and
opinions of subordinates, peers, supervisors, other managers and even workers themselves.
(Jackson & Schuler, 2002) Performance review system is concerned with the clarification of
employees’ work expectations, helping with individual employee growth and the collective
growth of the entire workforce, as well as ensuring that pay structure incorporates employee
performance. It ensures that employees have an awareness of how organizations expect them
to perform in relation to organizational goals after their performances are evaluated (De
Waal, 2004). This statement of awareness creation as mentioned by de Waal (2004) is in
integration with a finding by Gabris and Ihrke (2000) which states that the main aim of
performance review system is to provide periodic and formal feedback to individual staff
members. Performance review system is undertaken for certain reasons. Malcolm and
Jackson (2002) discuss three main reasons why performance review systems are done: One of
the reasons is what they term performance reviews. They describe performance reviews as an
opportunity for managers to hold discussions with their employees with regards to progress in
their current positions, their areas requiring further development. Secondly, they mention
reward reviews and describe it as usually separate discussions but linked to the appraisal
system in which the manager communicates decisions on rewards such as pay, benefits or
promotion and provides feedback. Finally, they discuss potential reviews which represent
discussions about employees’ opportunities for progression, and the type of work they will be
fitted for in the future and how this can be achieved. In a related discussion, Wendy R.
Boswell and John W. Boudreau (2002) mention two typical reasons for performance review
system: evaluative and developmental purposes. According to Boswell and Boudreau (2002),
the evaluative function covers using performance review system for typical HR decisions like
pay and salary administration, promotion, retention, termination, layoffs, giving employees
the needed recognition, and identifying poor performance. This represents an amalgamation
of two of the purposes of performance review system, that is (performance reviews and
reward reviews) as discussed by Malcolm and Jackson (2002). It is also considered as an
evaluative process because depending on how an employee performs, they attain certain
numerical scores. Afterwards, the scores attained by each employee are communicated to him
or her. Boswell and Boudreau (2002) also describe developmental functions as geared
towards improving individual employees by employing the use of appraisals to identify
training deficits in employees, giving employees a clear perspective about what their
strengths and weaknesses are, and to provide employees with feedback about their
performance. With regards to clarifying reasons for performance review system, Youngcourt
et al. (2007) assert that perceived reasons for appraisal will influence employees’ attitudes
towards performance review system irrespective of intended purpose. They therefore suggest
that there should be a clear purpose behind establishing performance review system and it
must be achieved.

Performance review system Approaches.

Organizations may adopt different approaches which can be traced to the classification by
Creamer and Janosik (1999) which comprise behaviour based approach, and result focused
approach. Creamer and Janosik (1999) describe the behaviour-based approaches as the type
of performance review system that employs the uses of specific factors of performance in the
evaluation of employees. These include rating scales and forced choice method. Another type
which fits under the behaviour-based approach is the behavioural checklist which outlines
specific criteria or targets an employee must meet. The behaviours may vary according to the
particular type of job under assessment. This method is regarded as favourable because it
avoids comparing the performance of one employee with the performance of another
employee but rather focuses on performance yardstick for each employee (Diya Jose, 2013).
Secondly, results-focused approaches lay emphasis on what results the appraisals bring
(Creamer and Janosik, 1999). An example of result based approach which is widely used is
Management by Objectives (MBO). MBO evaluates performance objectively and it is a
modern of performance review system. With MBO, managers and their employees have a
discussion and both parties agree on which goals to achieve and when to achieve them (Diya
Jose, 2013). Diya Jose (2013) also discusses 360 degree appraisal and psychological
appraisals. She describes 360 degree appraisal as one which takes an all inclusive approach. It
ensures that all parties related to the employee, that is the manager, supervisor, and team
members give a feedback on the employee performance. It also makes use of employee
profile and reports. Apart from all these, an in-depth feedback from the employee himself is
also used. Psychological appraisals, on the other hand, are very useful in placing employees
in teams as it uses a psychological approach in evaluating the psychological traits such as
how an employee analyses issues, his reasoning ability, his emotional stability and his
intellect.

Impacts of Performance review system on Employees’ Attitudes

Studies on the impacts of performance review system on employees’ attitudes emphasize

the need for feedback (Shrivastav & Sapra, 2012) and rewards (Gichuhi, Abaja, & Ochieng,
2012). Shrivastav and Sapra (2012) in a study to investigate the impacts of performance
review system on employees’ attitudes revealed the relevance of performance review system
to organizations but also emphasize the need to give feedback to employees due to the
positive impact that will have on their performance. They assert that feedback after appraisal
helps strengthen communication between supervisor and employees and also motivates the
employee. The study also determines the role performance review system plays in guiding
employees to work towards attaining organizational goals and their own goals as well. Poorly
undertaken performance review systems can have detrimental effects on the organization by
causing employees to perform worse. The study by Gichuhi, Abaja, and Ochieng (2012) in
Kenya discovered that employees realize little benefit after a performance review system. It
claimed that there was little reward as far as performance review system is concerned. The
study asserted that there is no significant difference in rewards to employees on the basis of
their performance. The study questioned why employees get no tangible benefits from
appraisals and suggests that the purpose of appraisals be relooked at. This practice has the
potential of reducing employees’ job satisfaction and commitment levels since rewards are
one of the factors that influence employees, job- related attitudes (Moorhead & Griffin,
1992). In another study in Kenya which was to investigate the effectiveness of performance
review system systems on employees，Omboi Bernard Messah and Shadrack M. Kamencu
(2011) proved that performance review system systems have positive impacts on the
performance of employees in the Kenya Tea Development Agency. They identified employee
training, management by objectives and performance based pay as the main factors that have
an influence on the performance of employees as they were given high ratings by
respondents. The study also suggested that competence, assessment and development also
influence employees performance but to a relatively moderate extent. A recent study by
Daoanis (2012) reveals that performance review system system strongly affects the
commitment of employees in both positive and negative ways. She discovered that
employees’ loyalty are strongly affected, hence their initiative in doing their work. It follows
that efficiency and effectiveness of the employees are strongly affected as they claimed that
their motivation in doing their work are affected. On the positive side, responses by
employees revealed that they would not mind working extra hours, on the negative side;
however, employees will be unwilling to work for extra hours or beyond the hours for which
they are paid because they feel they are not rewarded sufficiently. Employees will feel
motivated to work towards achieving organizational goals, even those which may be super
ordinate, and will also cause an increase in their affective commitment (Latham, 2003).
Finally, a research on sales persons asserts that giving clear explanations on the criteria used
in evaluating employees and giving employees the chance to partake in designing appraisals a
positive relationship with their commitment. However, if the employees’ roles in the
organization are not clearly defined, it will have a negative impact on commitment (Pettijohn,
2001).
 DATA ANALYSIS AND INTERPRETATION

Data analysis is a method of reviewing, cleaning, transforming, and modelling data in order
to discover useful information, to inform inference and to facilitate decision-making. Data
analysis plays a role in making decisions more rational and in helping businesses work more
successfully in today's business climate. Data mining is a specific data analysis methodology
that focuses on statistical modelling and the exploration of information for predictive rather
than purely descriptive purposes, whereas business intelligence includes data analysis that

relies heavily on aggregation focusing mainly on business knowledge.

Data requirements
The data are necessary as inputs for the analysis, which is specified based on the
requirements of those who direct the analysis or customers (who will use the analysis '
finished product). The general form of entity on which the data are collected is referred to as
an experimental unit (e.g., a person or group of individuals). Specific variables may be
specified and obtained in respect of a population (e.g. age and income). Data may be
numerical or categorical (i.e. a number text label)

Data collection
Data were obtained from a variety of sources. Analysts can communicate the specifications to
data custodians, such as in-house information technology staff. The data can also be gathered
from environmental sensors, such as traffic cameras, satellites, recording devices, etc. It can
also be obtained through interviews, online downloads, or reading documentation.

Data processing
The data obtained initially have to be processed or organized for analysis. For example, for
further analysis, such as within a spreadsheet or statistical software, these may involve
placing data in rows and columns in table format (i.e., structured data).

Data cleaning
The data may be incomplete once processed and organized, contain duplicates or contain
errors. The need for data cleaning arises from problems with the way in which data is entered
and stored. The process of preventing and correcting such errors is data cleaning. Common
tasks include matching records, identifying data inaccuracy, overall quality of existing data,
deduplication, and segmentation of columns.[6] Such data problems can also be identified
through various analytical techniques. With financial information, for example, the total for
specific variables can be compared with separately published numbers that are considered
reliable.

Exploratory data analysis

It can be analysed once the data is washed. Analysts may use a variety of techniques called
exploratory data analysis to begin understanding the messages found in the data. The
discovery phase can result in additional data cleaning or additional data requests, so these
tasks may be iterative. Descriptive statistics can be created, such as the average or median, to
help understand the data. Results visualization can also be used to analyze data in graphical
format in order to gain additional insight into the data messages.

Modeling and algorithms

To identify relationships among variables, such as correlation or causation, mathematical
formulas or models called algorithms may be applied to the data. In general terms, models
can be built to test a particular data variable based on other data variable(s), with some
residual error depending on the accuracy of the model (i.e., Data= Model+ Error).

Data product
A data product is a computer application that takes inputs of data and generates outputs,
returning them to the environment. It may be based on a template or algorithm. An example
is an application which analyzes customer purchase history data and recommends other

purchases that the customer may enjoy.

Communication
Once the data is analyzed, the users of the study may be recorded to meet their requirements
in many formats. The consumers may have input, which contributes to further study. As such,
the theoretical process is essentially iterative. The analyst may consider data visualization
techniques when determining how to communicate the results to help communicate the
message to the audience in a clear and efficient manner. Data visualization uses displays of
information (such as tables and charts) to help convey key messages contained in the data.
  AGE

Since the respondents were allowed to mention their specific age instead of an age group, the
above data has led to believe the following:

 The age group of the respondents seems to be concentrated in the age group of 24 to
32 years to be specific

 It can be observed that the respondents are ranging from the age group 20 to 45 years
  GENDER

Question Female Male Other

Respondents 54 45 0

 From the above data we can see the classification of gender into three
categories of female, male and those who chose prefer not to say.

 The percentage of females is 55.4%

 The percentage of males is 44.6%

  The people who chose not to prefer was 0%

DESIGNATION

Questio Comp Analy Senior Consulta Senior Associat Senior Principal

n and st Analy nt Consulta e associat consulta
benefit st nt consulta e nt
s head nt

Count 10 16 20 10 7 11 8 9

Feedback Infra Pvt Ltd has the above mentioned designations in out of which :

 10 respondents were Compensation and benefits heads

 16 respondents were Analysts
 20 respondents were Senior Analysts
 10 respondents were Consultants
 7 respondents were Senior consultants
 11 respondents were Associate consultants
 8 respondents were Senior associate
  9 respondents were Principal consultant.

1. HOW OFTEN IS PERFORMANCE REVIEW SYSTEM CARRIED OUT IN YOUR

CONSULTANCY?

Questions Every 6 months Every 12 Quarterly

months

Count 52 44 5

 According to the survey conducted, 51.5% of the respondents stated that performance
review system is conducted in their consultancy every 6 months that is on a half year
basis.

 43.6% of the respondents stated that the appraisal process was conducted at Feedback
Infra annually i.e. After every 12 months.

 The rest of the respondents chose quarterly

 2. DOES PERFORMANCE REVIEW SYSTEM HELP YOU TO SET AND ACHIEVE
MEANINGFUL GOALS?

Questions Very Frequently Occasionally Rarely Never

frequently
Count 17 43 35 6 0

 According to the survey, 42.6% of the respondents stated that the consultancy helps
them to set and achieve meaningful goals through the appraising system frequently

 16.8% of the respondents chose very occasionally

 Whereas 16.8% of the employees said that it was more on a frequent basis

 Lastly, a few percent of the respondents chose rarely as their option

3. HOW DO YOU RATE THE TRANSPARENCY OF THE PERFORMANCE
REVIEW SYSTEM SYSTEM AT FEEDBACK INFRA CONSULTANCY?

Questions Outstanding Good Satisfactory Poor

Count 28 60 13 0
 According to the survey, 59.4% of the sample respondents chose good

 27.7% agreed that the appraising system was outstanding

 Whereas the rest of the respondents stated that the system was satisfactory

 None of the respondents stated that the appraising system was poor
4. HOW IS CONSTRUCTIVE CRITICISM GIVEN IN YOUR CONSULTANCY?

Questions Positively Negatively Neutral None

Count 59 2 38 0
 Through the survey, 58.4% of the respondents stated that criticism was given at
Feedback Infra in a positive way

 37.6% of the respondents preferred choosing neutral as their option

 Very few percent of the respondents chose negatively and none

5. IN YOUR OPINION , WHAT DOES YOUR CONSULTANCY STRIVE TO
ACHIVE THROUGH PERFORMANCE REVIEW SYSTEM?

Questio Reviewing Training & Basis for Promoti Reward

ns performan Developme disciplina on & s&
ce nt needs ry upgradin incentiv
proceedin g es
gs

Count 35 24 14 19 9
 Out of the 100 respondents , 34.7% of the respondents said that the consultancy
strives to review performance through their performance review system system

 23.8% of the respondents chose training and development needs as their option

 13.9% of employees agreed that the consultancy the aim of performance review
system is done as a basis for disciplinary proceedings

 18.8% of the respondents chose promotion and upgrading as an achievement of

performance review system
  While the rest 8.9% of the respondents stated that the consultancy gives importance to
rewards and incentives through performance review system.

6. DOES FEEDBACK INFRA PROVIDE COUNSELLING AFTER APPRAISAL IS

DONE?

Questions Almost every Every time Almost Never

time never

Count 37 56 7 1
  According to the survey conducted, 55.4% of the respondents said that Feedback Infra
provides counselling every time after performance review system is conducted

 Whereas 36.6% of the respondents chose almost everytime

 A few 6.9% of them chose almost never as their option

 Lastly a very handful of the respondents preferred to chose never

7. ARE THERE ANY JOB EXPECTATIONS ESTABLISHED BEFORE

PERFORMANCE REVIEW SYSTEM IS CONDUCTED?
 Questions Frequently Often Sometimes Never

Count 41 33 26 1

 According to the survey, 40.6% of the respondents said that at Feedback Infra job
expectations are established frequently before performance review system is carried

 32.7% of the employees chose often

  25.7% of the respondents said that at Feedback Infra job expectations are established
sometimes before performance review system is carried

 A very few percent of the respondents chose never

8. ARE YOUR PAY BENEFITS AND PROMOTION OPPORTUNITIES BASED ON

YOUR PERFORMANCE RATINGS?

Questions Yes No Maybe

 Count 61 9 31

 According to the survey, 60.4% of the respondents stated that their pay benefits and
promotion opportunities are based on their performance ratings

 Whereas 30.7% of the respondents were not really sure and chose maybe

 The rest 8.9% chose a straight no

9. DO YOU AGREE THERE IS A BIAS JUDGEMENT IN THE APPRAISING
PROCESS?

Questions Strongly Agree Strongly Disagree Neutral

agree disagree

Count 17 26 13 13 32
 According to the survey, 31.7% of the respondents preferred choosing neutral and
stated that there is a bias judgement been taken place in the appraisal process

 25.7% of the respondents agreed slightly that bias judgement creeps in during the
appraising process

 16.8% of the respondents strongly agreed that the consultancy chooses to be bias
during the appraising process

 An equal percent of respondents nearly 12.9% chose disagree and strongly disagree
10. ARE YOU SATISFIED WITH THE CRITERIA ADOPTED TO APPRAISE YOU?

Questions Satisfied Somewhat Dissatisfied Somewhat

satisfied dissatisfied

Count 31 68 2 0
 As shown above, through the survey it was seen that 67.3% of the respondents were
somewhat satisfied with the appraising process of their consultancy

 30.7% of the employees were just satisfied with the appraising criteria

 A very few percent of the respondents were dissatisfied with the appraising criteria
 11. WHAT KIND OF REMEDIAL MEASURES ARE TAKEN FOR THE
BETTERMENT OF THE EMPLOYEE AFTER APPRAISAL IS DONE?

Questions Training Counselling Project wise Other

program feedback behavioural
aspects

Count 34 35 21 11
  According to the survey, 34.7% of the respondents state that counselling sessions are
conducted as a remedial measure after the appraisal is done at the consultancy
 Secondly, 33.7% of the employees said that training programs are conducted after the
appraisal as a remedial measure
 20.8 of the employees state that project wise feedback is given to the employees at the
consultancy as a remedial measure after the appraisal is done
 The remaining 10.9% of the respondents chose other behavioural aspects

12. DOES THE PERFORMANCE APPRISAL PROVIDE A PLATFORM FOR

IDENTIFYING TRAINING NEEDS OF THE EMPLOYEES?
Questions Sometimes Often Very often Never

Count 51 39 11 0

 According to the survey, 50.5% of the respondents stated that at Feedback Infra
consultancy the performance review system system sometimes provides a platform for
identifying training needs of the employees

 38.6% of the respondents chose often as their option

  Lastly 10.9% of the respondents said that very often the performance review system
system provides a platform for identifying training needs for the employees

13. DO YOU THINK PERFORMANCE REVIEW SYSTEM HELP TO INCREASE

THE PRODUCTIVITY OF THE EMPLOYEES?

Questions Strongly Agree Disagree Strongly

agree disagree
Count 37 59 5 0

 58.4% of the respondents as seen in the above diagram agreed to the fact that
performance review system helps to increase the productivity of the employees

 36.6% of the respondents strongly agreed that performance review system helps to
increase the productivity of the employees

 A few percent of the respondents i.e. only 5% of the respondents disagreed that
performance review system to increase the productivity of the employees
14. ACCORDING TO YOU, WHICH METHOD OF PERFORMANCE REVIEW
SYSTEM TAKEN PLACE AT FEEDBACK INFRA CONSULTANCY MAXIMUM
EFFICIENT?

Questions Project based Appraisal done on

appraisal project by project delivery,
project manager and performance &
project director competencies required
for the role
Count 52 49

 According to the survey conducted, nearly 51.5% of the respondents stated that the
method of project based appraisal process by project manager and project director is
maximum efficient in performance review system

 48.5% of the respondents chose the method of appraisals done on project delivery ,
performance and competencies required for the role
15. WOULD YOU SUGGEST/RECOMMEND ANY CHANGES IN THE
APPRAISING SYSTEM OF YOUR CONSULTANCY?

Task based appraisal system should be adopted

Appraisals should be done by final output
More transparency
Appraisals should be done frequently may be once in 6 months or 3 months
Use a uniform evaluation skill and begin with a strong performance plan
Appraisal should not only be given to good performances but also a little appraisal should
be provided to neutral performers so that it boosts their productivity
Criticisms should be given in a more friendly or positive way
Higher transparency
Appraisals should be done in a friendly way
Frequent performance check is needed for better employee functioning.
There should be higher transparency
Yes .The way it function sometimes because of someone
There should be no bias creeping in the performance review system system.
Promotions can help
Keep motivating your staff they will work better
Constructive remedial measures should be conducted after appraisals are carried on
Appraisals should be more open
Appraising system should be biased and transparent, and importance should be given to
talent and hard work of the employees.
Appraisal should be done on the amount of assignments and project delivery of employees
and it should be transparent.
Appraisal should be biased and employees should be rewarded according to their
competencies and capabilities
Appraisals should be conducted more frequently
Appraisals can be conducted in a more friendly way
Appraising scale should be uniform for all and throughout
Appraisals should be conducted in such a way that it motivates the employees to work
even harder.
Appraisals should Increase job satisfaction and improve employees' sense of loyalty
toward the company.
It should increase the rapport between management and employees.
Evaluate performance and not personality
Appraisals should be more honest, realistic, specific and complete
Appraisal interviews should not be taken.
There should be greater transparency
Positive feedback should be given
Proper counseling and training sessions should be conducted

DATA INTERPRETATION

Data interpretation refers to the implementation of procedures through which data is reviewed
for the purpose of arriving at an inference. Interpreting data requires analysing data to infer
information from it in order to answer questions. It can be further defined as the process of
making sense out of a collection of data that has been processed. This collection may be
present in various forms like bar graphs, line charts and tabular forms and other similar forms
and hence needs an interpretation of some kind.
An organisation’s goals can be achieved only when people put in their best efforts. How to
ascertain whether an employee has shown his or her best performance on a given job? The
answer is performance review system. Employee evaluation is one of the fundamental jobs of
HRM, but not an easy one. In simple terms, performance review system can be defined as the
evaluation of an individual’s performance in a formal way, the performance factors being job
knowledge, output quantity and quality, initiative taken, leadership abilities, direction,
reliability, assistance, judgement, adaptability, health, etc. Assessment should not be confined
to past performance alone. Potentials of the employee for future performance must also be
assessed.

Performance review system can be defined as under:

” It is a formal, structured system of measuring and evaluating an employee’s job related

behaviours and outcomes to discover how and why the employee is presently performing on
the job and how the employee can perform more effectively in the future so that the
employee, organisation and society all benefit”.

The above definition includes employees’ behaviour as part of the evaluation. Behaviour can
be active or passive. Either way, behaviour affects job results. The other terms used for
performance review system are: performance rating, employee evaluation, employee
performance review, recruits appraisal, performance assessment, employee evaluation and
merit rating. In a formal sense, employee appraisal is as old as the concept of management
and in an informal sense; it is probably as old as mankind.

Objectives of Performance review system.

Data relating to performance assessment of employees are recorded, stored and used for
several purposes. The main purposes of employee assessment are:

1. To effect promotions based on competence and performance

2. To confirm the services of probationary employees upon their completing the
probationary period satisfactorily.
3. To assess the training and development needs of employees.
4. To decide upon a pay raise where (as in the unorganised sector) regular pay scales
have not been fixed.
 5. To let the employees, know where they stand in so far as their performance is
concerned and to assist them with constructive criticism and guidance for the purpose
of their development,
6. To improve communication. Performance review system provides a platform for
dialogue between the superior and the subordinate and improves understanding of
personal goals and concerns. This can also have the effect of increasing the trust
between the appraiser and the appraisee.
7. Finally, performance review system can be used to determine whether HR
programmes such as selection, training and transfers have been effective or not.
Broadly, performance review system serves four objectives-
i. Developmental uses
ii. Administrative uses
iii. Organisational maintenance/objectives
iv. Documentation purposes

Objectives of appraisal also include affecting promotions and transfers, assessing training
needs, awarding pay increases and the like. The emphasis in all these is to correct the
problems. These objectives are appropriate if the approach in appraisal is individual.
Appraisal, in future, would assume systems orientation. In the systems approach, the
objectives of appraisal stretch beyond the traditional ones.

In the systems approach, the emphasis is not on the individual assessment and rewards or
punishment. But it is on how the work system affects an individual’s performance. In order to
use a systems approach, managers must learn to appreciate the impact that the system level
factors have on individual performance and subordinates must adjust to the lack of
competition among individuals. Thus, if a systems approach is going to be successful, the
employee must believe that by working towards shared goals, everyone will benefit.

In the systems approach, the appraisal aims at improving the performance, instead of merely
assessing it. Towards this end, appraisal system seeks to evaluate opportunity factors.
Opportunity factors include the physical environment such as noise, ventilation and lightings,
available resources such as human and computer assistance; and social processes such as
leadership effectiveness. These opportunity variables are more important are more important
individual abilities in determining work performance.

Not that the role of the individual is damaged. The individual is responsible for large amount
of its work appearance. Employees should not be motivated to look for organisational reasons
for their failure. The identification of systems obstacles should be used to help growth and
incentive, not as an excuse to poor presentation.

Performance review system biases.

One of the most thorny and important aspects in the performance review system process has
to do with biases. A bias is defined as a discrimination in favour of or against someone or
something. It should go without saying that workforce expect their performance evaluations
to be fair and free of biases. Managers commit mistakes while evaluating employees and their
performance. Biases and judgement errors of various kinds may spoil the performance review
system process. Rating errors are factors that mislead or blind the managers in the appraising
process. It is strictly stated that the employers should avoid anything that includes being
favourable to a certain group of employees. Bias here refers to imprecise misrepresentation of
a measurement. These are.

1. First impression (primacy effect):

Raters form a general notion about the ratee on the basis of some particular trait of the ratee
identified by them. The identified qualities and features may not provide sufficient base for
appraisal.

2. Halo effect:

The individual’s performance is completely appraised on the basis of a professed positive

quality, feature or trait. In other words this is the tendency to rate a man consistently high or
low in other traits if he is extra-ordinarily high or low in one particular trait. If a worker has
few absences, his supervisor might give him a high rating in all other areas of work. This is
nothing but letting one positive factor you like affect the entire evaluation process of the
employee performance.

3. Horn effect:
The individual’s performance is completely appraised on the basis of a pessimistic quality or
feature perceived. This indirectly results in an overall lower rating than necessary. “He is not
properly dressed up in the office. He may be casual at work too! “This is the extreme
opposite of the halo effect. It lets one negative work attribute or behaviour you dislike cover
up the rest of your opinions.

4. Extreme firmness or leniency:

Depending upon the rater’s own standards, values and physical and mental form at the time
of appraisal, the employee maybe rated very strictly or moderately. Some of the managers are
likely to take the line of least opposition and rate people high, whereas others, by nature,
believe in the cruelty of exact appraisal, considering more particular the drawbacks of the
individual and thus making the assessment extremely strict. The leniency error can cause a
system to be unsuccessful. If everyone is to be rated high, the system has not done anything
to discriminate among the employees.

5. Central Tendency:

Appraisers rate all employees as normal performers. That is, it is an attitude to rate people as
neither high nor low and follow the central path. Grouping everyone in the between
performance categories to avoid extremes of good or bad performance. It’s quite simple but
not right. It’s completely unfair to the employees who actually put in efforts, this ultimately
demotivates the employees. For instance, a lecturer, with a view to play safe, might mark the
entire class as B grade, regardless in the differences in individual performances.

6. Personal biases:

The way a manager feels about every subordinate working below him-regardless of whether
he likes them or no- has a remarkable effect on the rating of their performances. Personal bias
can creep in from various sources as a result of information obtained from co-workers,
personal belief and knowledge, collective and family background, and so on. Personal biases
should never influence the performance rating. These biases can arise out of race, sex,
religion, age, personality, psychology, and so on.

7. Spill over effect:

The current performance is assessed on the basis of past performance. The employee who
was an average performer in the past is assumed to be okay in the present as well.
8. Recency effect:

Evaluation is subjective by the most current behaviour keeping aside the commonly
illustrated behaviours during the whole evaluation period. Data should be inclusive of the
entire assessment period.

9. The sunflower effect:

This effect rates all the employees high, regardless of what their performance is.

Therefore, while evaluating performances; all the above biases should be avoided.

At Feedback Infra Pvt Ltd, according to the survey, 31% of the employees preferred being
neutral when asked whether bias judgement was involved in the appraising process of the
consultancy or no. On the other hand, nearly 25.7% of the respondents agreed to the fact that
the management includes biasness in the appraising process. A group of respondents that is
16.8% of them strongly agreed to the question. Lastly, an equal number of respondents that is
12.9% chose to disagree and strongly disagree for the same.

PERFORMANCE APPRAISAL PROCESS.

Business owners must be able to gauge whether an employee is meeting performance

standards. Developing a process that enables managers to appraise performance through
objective metrics is imperative, so that a manager can define any underlying human resource
issues versus operational issues. It is possible to customize the process, although there are six
primary steps in the performance review system process:

The six steps involved in process of performance review system are as follows:

1. ESTABLISH PERFROMANCE STANDARDS

The evaluation process begins with the establishment of performance standards. The
managers must decide what outputs, events and skills will be assessed. These standards should
evolve out of job analysis and job descriptions, employee handbooks and operational manuals.
These performance standards should not be expressed in an uttered or unclear manner such as
‘a good job’ or ‘a fully day’s work’ as these vague phrases tells nothing. Performance
standards include everything from attendance to sale goals. Businesses must set a company
culture of expectation fulfillment that is constant for everyone. Giving some people a pass on
meeting standards creates problems with team morale and potential legal issues when firing
employees. Standards are subject to change, based on changes in business needs.

2. Communicate Performance Expectations to Employees:

Once the performance standards are recognized, this needs to be communicated to the
employees so that they come to know what is expected of them. Experience shows that not
communicating standards to the employees results in the appraisal problem. Here, it must be
noted that sheer transmission of information (relating to performance standards for e.g.) from
the manager to the employees is not communication. It becomes communication only when
the transmission of information has taken place and has been received and understood
thoroughly by the employees. The feedback from the employees on the standards
communicated to them must be obtained. If required, the standards may be customized or
revised according to the feedback obtained from the employees. It is important to note that
communication is a two-way road. Establishing performance standards isn’t enough.
Management must properly communicate these performance standards to employees. Even
though these standards are written manually and are circulated in company magazines and
manuals, managers should hold an onboarding process that summarizes the company’s
expectations. Meetings held on a regular basis to review the standards make a compulsion to
the workforce that they ought to meet a stipulated number of necessities to retain employment
or to be at a peak for incentives and promotions.

3. MEASURE ACTUAL PERFORMANCE:

This is the third stage involved in the appraising process. In this step, the actual employee
performance is measured based on information available from various sources such as
personal examination, statistical reports and manual reports. Most importantly, the assessor’s
emotion should not influence the measurement of performance of the workforce.
Performance measurement should be strictly based on facts and conclusion. Reason being,
what we measure is more important to the assessment process that how we measure. Clearly
defined standards are easy to measure. Managers keep a check of employee performance.
Weekly reviewing of attendance is done after proper scheduling, while sales goals are
reviewed monthly. Managers ought to determine how frequently various performance
standards are reviewed, based on its effectiveness in business achievement.

4. COMPARE ACTUAL PERFROMANCE WITH STANDARDS.

At this stage, the actual performance is compared with the predetermined standards. This
comparison may reveal the gap between actual performance and standard performance and
will allow the assessor to follow up with the fifth step in process which is employee
feedback. Managers normally set performance standards based to experience and the reports.
Every corporate and its workforce are important and one of a kind. However, comparing one
employee with the rest performing the similar tasks helps the manager get an idea about
whether the problem is the employee or if it’s a greater problem of training or operations
hurdles.

5. DISCUSS THE APPRAISAL WITH THE EMPLOYEE:

The second last step in the appraising process is to communicate to and discuss with the
workforce the results of the evaluation process. The fifth step is said to be the most
challenging stage the employers face to present a proper appraisal to the employees and later
making them accept the feedback in a more constructive and positive manner. Appraisals
should be reviewed with the employees to be efficient. Therefore, it is obligatory to have a
one to one conversation with each employee to review the standard expectations and provide
feedbacks on the gap between the two. Make sure that the feedback is manually written in
objective terms and talk to employees in a formal and positive manner. Performance review
meetings should be used not only to give employee feedback but also to collect feedback
from the workforce about personal performance, sales goals, company feedback, etc.

6. INITIATE CORRECTIVE ACTION

The final step in the appraising process is the introduction of corrective action whenever
required. The areas where improvements are needed are identified, and then the measures to
accept or improve the performance are recognized. The corrective action is of two types. The
first one is quite instantaneous and deals with its symptoms. This action is usually termed as
‘putting out fires. The second one is more basic and deals with the causes of gaps and
constantly seeks to adjust these gaps everlastingly. This type of action plan includes time to
analyse the gaps. Hence, employers often choose the immediate action. Training, coaching,
counselling, etc is some of the familiar examples of corrective actions that the employers
introduce to improve the employee performance. It is equally important to set an action plan
for futuristic performance review systems. Setting greater goals around areas of employee
accomplishment and provide stipulated plans of action where enhancement is needed.
Managers should get the employees involved into growth prospects by asking them to put in
their own personal expectations and goals as a part of the entire development plan.
Employers should invite the employees to sign this plan and thoroughly accept the contents
which include agreeing to that action plan. Once signed the undertaking, managers should
make a copy for the respective employee and another one for the HR record.

Today managers are recognizing the need to change the performance review system process.
One of the most important questions that arises and managers need to keep in mind is, “How
often should the appraisals be conducted?” Usually, appraisals were conducted annually that
is considering the total months and the employee bonus and promotions were based on this
process. However, there are a few key points with the annual review process. The first one
being propensity towards recency bias as explained above. 12 months is usually a long time
to recall the minute details about the employee and the happenings. Therefore, today
managers are striving to narrow down their approach of performance review system to
quarterly or half yearly. Managers should try to avoid recency bias by conducting more
frequent performance reviews and check-ins. Another issue faced while conducting
appraisals annually is that the employers feel a lot of time has passed by to discuss certain
situations.
The growths divide survey from Wakefield research found that 67% of executives say they
have removed negative feedback from an assessment because a situation occurred way before
for the feedback to be relevant. A lack of feedback annually leaves a lot of employees facing
anxiety issues during the appraisal process. One survey of millennial employees found that
62% have felt “blindsided” by a review. The reason being that most of the respondents said
that they feel in the dark about the way their employers and peers evaluate their performance.
Partially due to this anxiousness, annual reviews are bound to be inefficient in providing
assistance to the employees to develop a professional behaviour. So to decide upon the best
time to conduct reviews, it all depends on the size , needs and resources of the company.
According to the Growth divide survey, nearly half of the companies still prefer annual
appraisals,81% of the workforce stated that they would still prefer quarterly reviews and the
rest of the respondents said that they would like to have performance check-ins at least once
per month. At Feedback Infra Consultancy, according to the survey conducted, 51% of the
respondents stated that performance review system is conducted in their consultancy every 6
months . Whereas 43.6% of the respondents stated that appraisals are conducted annually that
is every 12 months. However, the rest of the respondents that is very few chose quarterly as
their option.

Goal setting is an interactive process in which employee and supervisor sets goals together in
an environment of open communication. When the evaluation process works effectively, the
worker is certain that he/she can achieve the goal since he/she helped to set it by its own self.
The “six W” method is an important way to set and achieve goals with the help of an
employee. Rather than making vague and unclear suggestions, define all goals by who, what,
where, when, where, why and how. Some employers choose to use a continuing evaluation
process rather than an annual or half-yearly evaluation. For example, a sales employer and a
newly joined sales employer can set a goal of making quota. Then the employer can have a
one to one discussion with the newly joined employee to evaluate the improvement made
and further provide sales mentoring. After the seller obtains sufficient experience to
continuously meet the assigned target, the employer can help set a new sales aim based on
earning a bonus. A continuous evaluation process will only be practical if the employer has
enough time to meet employees regularly. One way to evaluate employee growth towards
achieving goals is with an annual performance review meeting. For example, a florist can sit
down with every employee annually discuss employee performance and set goals for the
succeeding year. Whenever possible, these goals should include scientific benchmarks such
as ‘improve sales of white roses by 10 percent per quarter’. It’s quite simple to evaluate a
goal which is specifically defined. One limitation of this approach is that employees may not
receive sufficient feedback to spot on the issues before they slip out of place.

Most organizations have a kind of performance evaluation system to assess decisions that are
related to promotions, incentives, rise in the pay scale, etc. To carry out this, a set of
expectations is laid down against which employees’ performance is measured. That’s when
the significance of writing SMART performance evaluation goals comes in. SMART goals
which stand for specific, measurable, achievable, relevant and time-bound are utilised in
employee assessments as a method to improve performance management. SMART goals are
a one-on-one step to efficiently devise and achieve goals and can be used in integration with
assessments and performance reviews.

At Feedback Infra Pvt Ltd, the management allows the employees to set and achieve
meaningful goals. According to the survey conducted, nearly 42.6% of the respondents stated
that the consultancy allows them to set and achieve meaningful goals on a very frequent
basis. On the other hand, 34.7% of the population chose occasionally as their option in setting
and achieving meaningful goals. A little population of 16.8% of the respondents stated that
the consultancy gives them the opportunity to set and achieve meaningful goals very
frequently. The rest of the population finally stated that setting and achieving of goals at the
consultancy is done on a very rare basis.

TECHNIQUES / METHODS OF PERFORMANCE REVIEW

SYSTEMS

Several methods have been devised to measure the quantity and quality of performance
review systems. Each of the methods is efficient for some purposes for some
organizations only. They should not be rejected or accepted as suitable except as they
relate to the needs of the organization or an employee.

These methods of appraisals can be divided into two different categories.

• Modern Methods

• Traditional Methods

Traditional Methods
 1. Rating Scales: Rating scales consist of several numerical scales representing job
related performance criterions such as dependability, initiative, output, attendance,
attitude etc. Each scales ranges from excellent to poor. The total numerical scores are
calculated, and final conclusions are obtained.

Advantages – Adaptability, easy to use, low cost, every type of job can be evaluated,
large number of employees covered, no formal training required.

Disadvantage – Rater’s biases.

2. Checklist: Under this method, a checklist of statements of traits of employee in the

form of Yes or No based questions is prepared. Here the rater only does the reporting or
checking, and HR department does the actual assessment.

Advantages – economy, ease of administration, limited training required,

standardization.

Disadvantages – Raters biases, use of improper weighs by HR, does not allow rater to
give relative ratings.

3. Forced Choice Method: The series of statements arranged in blocks of two or more
are given and the rater indicates which statement is true or false. The rater is forced to
make a choice. HR department does actual assessment.

Advantage – Absence of personal biases because of forced choice.

Disadvantage – Statements may be wrongly framed.

4. Forced Distribution Method: here employees are clustered around a high point on a
rating scale. Rater is compelled to distribute the employees on all points on the scale. It is
assumed that the performance is conformed to normal distribution.
5. Critical Incidents Method: The approach is focused on certain critical behaviors of
employees that makes all the difference in the performance. Supervisors as and when they
occur record such incidents.

Advantages – Evaluations are based on actual job behaviors, ratings are supported by
descriptions, feedback is easy, reduces recency biases, chances of subordinate improvement
are high.

Disadvantages – Negative incidents can be prioritized, forgetting incidents, overly close

supervision; feedback may be too much and may appear to be punishment.

6. Behaviorally Anchored Rating Scales: statements of effective and ineffective behaviors

determine the points. They are said to be behaviorally anchored. The rater is supposed to say,
which behavior describes the employee performance.

Advantages – helps overcome rating errors.

Disadvantages – Suffers from distortions inherent in most rating techniques.

7. Field Review Method: This is an appraisal done by someone outside the employees’ own
department usually from corporate or HR department.

Advantages – Useful for managerial level promotions, when comparable information is

needed.

Disadvantages – Outsider is generally not familiar with employees work environment;

Observation of actual behaviors not possible.

8. Performance Tests & Observations: This is based on the test of knowledge or skills. The
tests may be written or an actual presentation of skills. Tests must be reliable and validated to
be useful.

Advantage – Tests may be apt to measure potential more than actual performance.
 Disadvantages – Tests may suffer if the costs of test development or administration are high.

9. Confidential Records: Mostly used by government departments, however its application

in industry is not ruled out. Here the report is given in the form of Annual Confidentiality
Report (ACR) and may record ratings with respect to following items, attendance, self-
expression, team work, leadership, initiative, technical ability, reasoning ability, originality
and resourcefulness etc. The system is highly secretive and confidential. Feedback to the
assesses is given only in case of an adverse entry.

Disadvantage- it is highly subjective, and ratings can be manipulated because the evaluations
are linked to HR actions like promotions etc.

10. Essay Method: In this method the rater writes down the employee description in detail
within a number of broad categories like, overall impression of performance, promo ability of
employee, existing capabilities and qualifications of performing jobs, strengths and
weaknesses and training needs of the employee.

Advantage – It is extremely useful in filing information gaps about the employees that often
occur in a better-structured checklist.

Disadvantages – It is highly dependent upon the writing skills of rater and most of them are
not good writers. They may get confused if success depends on the memory power of raters.

Modern Methods
1. Management by Objectives: It means management by objectives and the performance
is rated against the achievement of objectives stated by the management. MBO process goes
as under.
 Establish goals and desired outcomes for each subordinate.
 Setting performance standards
 Comparison of actual goals with goals attained by the employee.
 Establish new goals and new strategies for goals not achieved in previous year.
Advantage – It is more useful for managerial positions.
Disadvantage – Not applicable to all jobs, allocation of merit pay may result in setting short-
term goals rather than important and long-term goals etc.

2. Psychological Appraisals: These appraisals are more directed to assessing the

employees’ potential for future performance rather than the past one. It is done in the form of
in-depth interviews, psychological tests, and discussion with supervisors and review of other
evaluations. It is more focused on employees emotional, intellectual, and motivational and
other personal characteristics affecting their performance. This approach is slow and costly
and may be useful for bright young members who may have considerable potential. However,
the quality of these appraisals largely depends upon the skills of psychologists who perform
the evaluation.

3. Assessment Centers: This technique was first developed in the USA and UK in 1943.
An assessment center is a central location where managers may come together to have their
participation in job-related exercises evaluated by trained observers. It is more focused on
observation of behaviors across a series of select exercises or work samples. Assesses are
requested to participate in, work groups, computer simulations, role playing and other similar
activities which require same attributes for successful performance in actual job. The
characteristics assessed in assessment center can be assertiveness, persuasive ability,
communicating ability, planning and organizational ability, self-confidence, resistance to
stress, energy level, decision making, sensitivity to feelings, administrative ability, creativity
and mental alertness etc.
Disadvantages – Costs of employees traveling and lodging, psychologists, ratings strongly
influenced by assessor’s inter-personal skills. Solid performers may feel suffocated in
simulated situations. Those who are not selected for this also may get affected.

Advantages – well-conducted assessment center can achieve better forecasts of future

performance and progress than other methods of appraisals. Also, reliability, content validity
and predictive ability are said to be high in assessment centers. The tests also make sure that
the wrong people are not hired or promoted. Finally, it clearly defines the criteria for
selection and promotion.
4. 360-Degree Feedback: It is a technique which is systematic collection of performance
data on an individual group, derived from a number of stakeholders like immediate
supervisors, team members, customers, peers and self. In fact, anyone who has useful
information on how an employee does a job may be one of the appraisers. This technique is
highly useful in terms of broader perspective, greater self-development and multi-source
feedback is useful. 360-degree appraisals are useful to measure interpersonal skills, customer
satisfaction and team building skills. However, on the negative side, receiving feedback from
multiple sources can be intimidating, threatening etc. Multiple raters may be less adept at
providing balanced and objective feedback.

For every employer that states the significance of transparency in performance review
system, getting the importance of confidentiality in the limelight is important. Components of
private performance review systems argue that employees do not need to know everything,
and that excessive transparency can hold back the growth and employee performance. It is
stated that a lack of transparency can have both positive and negative effects. Studies have
proven that pay secrecy eliminates being envious among employees and boosts performance.
HR managers can utilize certain software to improve transparency and make information
readily accessible. Though conducting performance review system may drag down the
secrecy and make important information easily available, the sense of trust and confidence
that it brings to employees is indisputable. A HR management system not only improves
transparency during the assessment process but also provides employers with the key
functions that assist them to control the amount of information that is given out. Workplace
transparency is proven to raise long term success.

Transparency creates a bond between employers and employees, helps increase morale and
lessens job-related stress while increasing employee involvement and boosting performance.
And being transparent expenses nothing, which gives it an additional advantage and a return
on investment. In specific, workplace transparency is a viewpoint of sharing information
freely in an effort to benefit the organization and its employees. That could mean executives
sharing company information with the whole team or individual teammates sharing feedback
with each other, and it can even go beyond the walls to involve what your organization tells

candidates, customers, and the public. You may not be able to tell your executive team to be
more open about company performance, but that doesn’t make you any less integral to
workplace transparency. Transparency involves everyone in the organization; it takes a
collective effort to foster and maintain a transparent culture, especially when it comes to
setting boundaries and managing expectations. At Feedback Infra consultancy, nearly 59.4%
of the respondents stated that the performance review system system of the consultancy has
good transparency. 27.7% of the employees said that the transparency of their consultancy is
outstanding. These are probably the employees who are extremely satisfied with the
transparency process of the consultancy. The rest of the population that is 12.9% of the
employees was somewhat satisfied with the transparency and chosen satisfactory.

Employee assessments should not be an exercise in criticism and dissatisfaction. Instead,

provide constructive criticism by letting the employee know about his areas of improvement,
his well doings, etc. If you provide constructive criticism with a sense of kindness, your
employee should feel motivated and empowered to make changes rather than feeling low and
discouraged.
Few ways in which constructive criticism can be provided to employees are as follows:

1. Have a balanced discussion with the representatives in a different room where there won't
be any hindrance between the two. It is inept to give productive analysis to the representative
before different workers. This would look amazingly amateurish, might bring down worker
resolve and at last may cause the representative to feel awkward.

2. Illuminate the worker the fundamental reason with respect to for what reason is the
gathering being held before directing the assessment procedure. Mention to the worker what
do you anticipate from him such us, "We're meeting today so as to have a discussion about
your exhibition in the course of the most recent two months. I might want to have a word
around not many of your achievements and present proposals about on ways you can show
signs of improvement with your exhibition in a few regions."
This at last sets the quality for the gathering and opens the discussion between the two.
3. Clarify your appraisal precisely on point. Be exact during the criticism meetings. Else, it
won't qualify as useful. For instance, maintain a strategic distance from speculations, for
example, "Your marketing numbers need a little work." Instead, tell the representative
explicitly which zones need work. For instance, if the representative isn't giving enough
insight regarding his business calls, disclose to him he ought to give nitty gritty notes of his
endeavors to open new records and hold your present records.

4. Give a compliment before delivering constructive criticism to lessen the impact. If the
employee is a customer service agent, for example, tell her you have noticed that she is
personable and engaging when meeting with customers in person. After that, tell her areas
she needs to improve, such as to be less curt and dismissive when speaking with customers
over the phone.

5. End your constructive feedback with a closing compliment to inspire the employee to
improve. For example, you could say to the employee, "The customers already like you, so
make an extra effort to be cordial when speaking to them on the phone to solidify their
commitment to you as their contact."

6. Tune in to worker criticism and take notes to remember for the representative's assessment
record. Reword what she says to ensure you comprehend. For instance, the worker may state,
"At times, I am chipping away at something different when a client calls me and all I
consider is getting off the telephone." You can answer, "Along these lines, you feel diverted
when a client calls and hinders what you are doing?" After that, offer explicit
recommendations for development: "Take a stab at taking a full breath and putting a grin all
over before picking up the telephone. This can assist you with unwinding and spotlight on
helping the client."

7. Give the worker a timetable inside which to improve his presentation, if his exhibition is
beneath desires. Tell the representative the outcomes of not improving his exhibition, for
example, suspension or end. Stick to organization strategy for alerts and disciplinary
measures to maintain a strategic distance from conceivable case if you suspend or fire the
worker.
8. Record all that you examined during the assessment: remarks, plans for development,
results. Let the worker record his own remarks on the structure. Sign and date the assessment.
Request that the worker read, sign and date it. Give the worker a duplicate. Spot a duplicate
in the representative's record.

9. Development and give casual input as you notice the worker attempting to meet the
objectives of her improvement plan. Your anxiety and support exhibits your pledge to the
representative's prosperity.

• Give the worker a self-assessment to finish before you, so he can increase a

functioning part in the assessment procedure. Likewise, he may address regions that you are
unconscious of or have overlooked.

• Evaluate the tone of your voice as you are addressing the worker. Ensure it sounds
even and proficient.

• Gain eye to eye connection with the representative as you are talking. This will show
the representative that you are true.

• Avoid applying helpful analysis to multiple or two regions. Else, you may overpower
the representative.

• Do not contrast a representative with his associates or discussion about her character
or disposition.

• Do not talk about variables, for example, a representative's age, religion, race or
sexual direction or discussion just about her activity execution.

According to the survey at Feedback Infra consultancy 58.4% of the respondents stated that
constructive criticism is given in the respective consultancy in a positive way. On the other
hand, 37.6% of the respondents state that criticism given in Feedback Infra is more on a
neutral basis. A few of the respondents chose negatively and none as their option.
Representatives, just as supervisors, frequently question why associations do worker
execution examinations. Any individual who has ever experienced the less than desirable
finish of an exhibition evaluation could contend why they see it to be inadequate and a total
exercise in futility. Representatives regularly feel unreasonably evaluated, and supervisors
frequently experience a constrained yearly procedure to conform to work desires. This doesn't
make it simple for either party. There are many fluctuating conclusions regarding the matter
of execution examinations and why they are finished. A few associations do execution
evaluations since they feel committed to do them – in light of the fact that every other person
does. Different associations do execution evaluations to ensure they have a bit of paper in the
representative's record – on the off chance that they ever need to do restorative activity.
However, effective associations comprehend the significance of consolidating execution
examinations into their exhibition the board procedure and system.

 Advantages of performance review system:

1. Improves performance
2. Employee development
3. Corrects deficiencies
4. Career growth
5. Promotion
6. Motivation

 Disadvantages of performance review system:

1. Prone to biasness
2. Contrast error
3. Generalization tendency error
4. Severity or leniency
5. Sampling error
6. Regency and primary errors
 RECOMMENDATIONS

No matter how good the workers are, there is always room for improvement or even up to
the next stage for moving results. Focus your approach on being positive with your feedback
while making recommendations for changes in employee appraisals. This will help ensure
that suggestions are viewed in a positive light by your staff. To engage employees and
managers in improving performance, these are the critical components of effective
performance review system:

Authenticity is the first and most important ingredient. Once the topic of authenticity has
been discussed, discussions involving the following 13 additional tips become more
applicable and help create successful performance assessments:

1. Identify your objectives quite clearly;

2. Let the employee complete an assessment of him

3. Redefine or recon.firm the purpose of the job, the duties and the duties;

4. Define the goals of could duty and set targets;

5. Establish specific standards of performance;

6. be specific when addressing areas where improvements are required (i.e., facts, figures,
work records, reports, etc.)

7. Be specific when addressing examples of inacceptable behaviour (not general references

to' laziness' or' bad attitude'), cite as much as possible specific examples;

8. Present, discuss and agree, where necessary, on a "Performance Improvement Plan;

9. Set ongoing goals;

10, Provide the opportunity for feedback, not only during the meeting but by allowing your
employee to respond to the assessment in writing, detailing their disagreement or position;
11. Request as much feedback as possible not only on the performance at issue but also on
what the employee wants to improve, what professional development, training, new
assignments and challenges she has for herself generally in mind;

12. If performance does not meet standards in some area(s), then agree to set frequent,
regularly scheduled performance discussions;

Before closing the meeting, be sure to ask if the employee wants to discuss anything else,
thus maintaining a conversational tone rather than a confrontational tone.

Another thing to remember is that telling the employee that the annual performance
assessment is not necessarily tied to a pay evaluation is always a good idea. He may be
disappointed with some of the results of his assessment; if he presumed you would, it is best
not to deepen that disappointment by not addressing compensation.

Effective performance assessments-These are not possible, but are essential to maximize the
productivity of your most important resource, if given the proper priority, purpose and
planning: people
 CONCLUSION

1. Performance review system is one of the most important factors in

Feedback Infra PVT Ltd and a great tool used to record
productivity. Every organization must have goals and objectives
established and every employee must be involved in the process.
2. Also conducting a performance review will improve productivity
and the morale of the employee. Performance review are a positive
way for a manager to let the employee know how well they are
performing the duties that are assigned to them. Sometimes we get
caught up in our job and do not realize what the company strives to
do for employees.
3. Whether the award is a lousy employee dinner and or a simple
thank you card, your work is being recognized. Also, employees
should be thankful for any job they may have because the company
did not have to hire or any means.