SUMMER TRAINING

REPORT ON

PERFORMANCE
APPRAISAL
Level of EMPLOYEE SATISFACTION WITH RESPECT TO
NEVA GARMENTS

MASTERS OF BUSINESS ADMINISTRATION

(MBA)

SUBMITTED TO:
SUBMITTED BY:
Mrs. SWATI DWIVEDI
KANIKAMEHTA
LECTURER (FACULTY)
80804317025
P.I.M.T MBA III
(SEM)
PUNJAB INSTITUTE OF MANAGEMENT AND
TECHNOLOGY (PIMT)
MANDI GOBINDGARH

DECLARATION
Kanika Mehta hereby declared that I have prepared this project
report NEVA GARMENT in partial fulfillment of Master Of Business
Administration from Punjab Institute Of Management and
technology Mandi Gobindgarh Affliated to Punjab Technical
University Jalandhar under the guidance of Lect. SWATI DWIVEDI .
This project complied and submitted by me is my original
framework. And it is not submitted anywhere its for the award of
my degree.

Date:

Place:

Kanika Mehta

MBA III (SEM)

 CERTIFICATE BY GUIDE

Punjab Institute of Management and Technology

Mandi Gobindgarh,Punjab

Approved by A.I.C.T.E Govt.of India

Affliated by Punjab technical university,Jalandhar

To Whom It May Concern

This is certify that summer training project entitled

”PERFORMANCE APPRAISAL” in NEVA GARMENTS submitted in
partial fulfillment of the degree of MASTER OF BUSINESS
ADMINISTRATION to Punjab Institute of Management and
technology Mandi Gobindgarh (Approved by A.I.C.T.E affliated to
PTU Jalandhar ) is a record of original project carried by Kanika
Mehta under my supervision and guidance. No Part of this project
report has been submitted to any other Degree diploma and this
report may be taken for evaluation.

Lect.SWATI DWIVEDI

Faculty(mgt)
 P.I.M.T Mandi gobindgarh.

PREFACE
The project on study of “Performance Appraisal” has been
conducted to fulfill

the requirement as is imposed by Punjab technical university in

support of

MBA. This system of education is highly appreciated as it provides

the student

with an opportunity to acquaint them with various aspects in

practical a have

been studied in courses during post graduation .

This support is concerned with performance

appraisal is prepared on

the basis of information collected from various persons in NEVA

GARMENTS LTD.

This is made by me but with help, guidance and suggestions of

some very

experienced and intellectual persons in NEVA GARMENTS LTD.

The required

information was obtained through the questionnaires which were

filled by
various persons in the firm.

ACKNOWLEGDEMENT

With deep consent and pleasure, I would like to express my heart-

felt gratitude to

all who helped in preparation of the project report without their

cooperation the

work would not have been possible.

First of all I wish to express my profound gratitude and

sincere thanks to

Ms. Sonia (HRM Department). They gave me an opportunity to

Undertake training in the organization .I appreciate the constant

and

encouragement, sympathetic understanding and cooperative

behavior of all the

staff members during this training.

 I would also like to thank the management of NEVA
GARMENTS Ltd. For

providing me the relevant information in preparing report. I thank

them for

taking interest in my training and guiding me, despite their busy

schedule.

Kanika Mehta

CONTENTS
1. INTRODUCTION

2. COMPANY PROFILE

3. OBJECTIVES

4. RESEARCH METHODOLOGY

5. DATA ANALYSIS AND INTERPRETATION

 6. FINDINGS

7. LIMITATION

8. CONCLUSION

9. SUGGESTION

10. BIBLIOGRAPHY

11. ANNEXURE

COMPANY
PROFILE
NEVA Garments Profile
In 1998 Indian winters changed forever. Duke-India’s number one
T-shirts company and exported to countries like UK and US
introduced NEVA, a step towards capturing Thermal Winter
Innerwears. It was a never before concept in the innerwear
market in India. The product becomes an instant success and
NEVA becomes a household name. It sold more than 2 lac
garments in the first year itself. Today the group enjoys the total
turnover of more than 300 Crores.

NEVA becomes leader in no time, today it boasts of 25% share of

the 100Crores branded Thermal markets. We have a state of the
art factory located in Ludhiana employing more than 1000
employees and with the machines imported from Germany, USA,
Japan and Taiwan, the company produces 25000 pcs per day.
NEVA is responsible for turning Thermal innerwears first into a
necessity and then into an industry in India. Today we produce
India’s largest range of thermals.

After the phenomenal success of Thermal innerwear, it was

natural for NEVA to expand its portfolio of offering. Filling
ventured into high quality innerwear and lingerie. What was a
modest beginning in 2001 has now becomes a sweeping was of a
success. Proving its strength on the domestic soil, NEVA is now
planning to take this product to international shores. Pricing has
helped NEVA establish itself in the markets of middle east and the
gulf.

After the first successful phase of overseas expansion, NEVA is

now poised. To enter other global markets right from the
beginning, NEVA has had a policy to provide innovative products
to its consumers. Carrying forward this policy, NEVA is proud to
introduce the perfect way to combat winters: Neva Eleve, active
wear range which include the best choice of apparel when you are
active and energetic.
Sensing the changes the market is undergoing and anticipating
future selling trends; NEVA has strategically decided to foray into
large format stores and multi branded outlets. As the portfolio of
products of the company is increasing rapidly, it Is considering
show casing the range in multi branded stores through a special
counter. This will enable the customer to see and choose from the
large range of the brand’s products. Te future holds tremendous
opportunities as NEVA moves from one milestone to the next.

Mod Quilt, Neva Maxx, Esancia and Neva Pep Thermals for all age
groups. We hope that these products like any Neva product
exceed our customer’s expectations. You can also make your
summer collection look more stunning with our world class
products: Neva Maxx, with these products, you can make a style
statement and at the same time, stay comfortable too.

History of NEVA
A word about KNA

Established more than three decodes ago “DUKE” today is a

household name in India. Consistently providing the Indians
consumers, their means of maximum satisfaction by giving them
best quality products and services at an affordable process.

Coming off DUKE group of companies KNA

INTERNATIONS,L.T.O.Synonyms with excellence in its structural
and functional perspectives.

The house of “KNA” has contributed their mite in satisfying the

customers need for wearing only Unique and global quality
“Thermal “ inner wears for the first time in India.
The group concerns have in house facilities right from your drying
facilities right from yarn drying.” knitting, fabric processing and
finishing up to manufacturing of garments.

KNA having computerized plants state of art machinery for latest

garment processing and manufacturing and is one of the most
capable units of North India to Chrum out satisfaction to millions
of its customers under the supervision of skilled and teaching
qualified professionals. Our commitment to the nation is to make
available to the Indian masses History goods. Knitted fabrics,
garments and Thermal innerwear at most affordable process.

Brand vision

We are try into place our brand among the niche players in the
market. Till recently we were catering to the market which
existed in between the upper level and the lower level, but now
our focus will be the top-of-the-line market. Hence, we are now
manufacturing value added niche products.

Brand worth

We were aware of the expected change following fall of the quota

regime in 2005 and had started working it by concentrating on a
brand building exercise. India, being a price sensitive market, it
was necessary that we priced our product accordingly. The result
was that we have a loyal brand following, and we make sure that
our quality matches our name. There was a constant endeavor to
improve the technology which is reflected in the product. The
brand’s worth was further strengthened by placing regular ads in
media outlets.

Challenges ahead

Our main task will be to maintain our lead in this highly

competitive segment by continuously upgrading our products.

Social Responsibility
At Neva the customer rules. We also feel that each personnel in
the factory are an extension of the society and it is our duty to
make him/her happy. Towards this we devise special
programmers to upgrade the existing knowledge of the
workers .Besides, the HRD department is very active in the
organization .It has been our endeavor to take up social issues
and for this we participated in the of say no to Shah toosh with
Thermal campaign.

Various products of Neva are:-

Winter wear

Neva Eleve

Neva Mod Quilt

Neva Maxx Esancia

Pep Thermal

Neva Mate

Neva Body Warm

Track Suit

Summer wear

Neva Active wear

Neva pep range

Neva Miss

Neva Mint

Neva Mod

The distribution network consists of distributors retailers who form

an important channel. Neva Is A Main Supplier To North Zone,
South Zone, Delhi, Bihar, Maharashtra, UP, Gujarat.
Quality policy of Neva

The quality policy of the company shall lie to

Consistently provide products and services that meet the

requirement of the customers and tentatively advance the state –
of-the-art of product and systems that meet the emerging
expectations of the customers in the growing competitive
environment.

Creativity through zero non -zero performance and the customer

oriented education to the internal customers to load in the global
maintenance.

Business philosophy of NEVA

Firm faith in customer delightedness through best quality product

and services at affordable prices

• Continues up gradation of technological development and

human skilds.

• Integrated diversification and product development.

• Spreading comfort crlabally to the masses at most affordable

prices.

• Constant evaluation of customers needs and man aging

change accordingly.

• Steady business growth.

• Believe in “Total Quality Management”.

List of various stores

1) Accessories store
 2) Advertisement store

3) Asset store

4) Dyed Fabric store

5) Finished Fabric store

6) Finished sample store

7) Finished store

8) General store

9) Gray Fabric store

Packing store

Scrap store

Yarn store

General store

In general store general items are stored like pencils, rubber,

sharpner, fie, computer accessories, fax paper ,paper weight,
pads, various forms,A-
4sheets,enevelops,refills,stapler,stamp,attendance register,
circulars, calendars, soaps, towels, jugs, kitchen ware’s, oil,
fabricators. The material is issued to various departments by the
process of an requisition form. The requisition form is a form
which is filled by various department for the fulfillment of needs
by them. In requisition form the quantity, item, date of issues,
Suppliers are written. The requisition form is signed by the
department heads, then the form is pass on to the general
department then the general store head issued the items or
material to various departments according to their needs. The
head of general store is Mr.Mishra and there is one helper in that
store.

Accessories store

The head of accessories store is Mr. Navin Kumar Sharma. In

accessories Store, accessories like buttons, buckrams, snap
button, clips, packaging, material folders, dabbi, trade box,
elastics, and labels are store. The main suppliers of labels are
golden art gallery Hoshiarpur, craft ax Delhi, screen art
Bombay ,Uniroyal textiles Panchkula etc.The main supplier of
buttons are Kailash ribbons Delhi Gurgaon, The suppliers of
buckram are Chadha traders Ludhiana, Suppliers of clips are
Shubham Enterprises Delhi. The supplier of packaging material
,Folder , Dabbi, trade boxese ,are Jain Pacuwal Ludhiana. They
check the quotation of various vendors and the which they find is
most suitable in the sense good quality with treasonable rates are
preffered by them. Material after cutting and before dispatch is
stored in this store. There is a credit period of 60days within
which they have to clear all the payments to their suppliers’s.
Extra inventory of about one month is stored in order to meet the
future requirements. The material in accessories stored in
accessories store differently and the material for article NEVA
quilt is stored differently.

Limitation:-

• The major problem that I found in this store is lack of space.

• Due to lack of space, there is not proper storage of material

boxes of material are placed one over the other there before
it takes enough time of the worker to search for the material
on order by the various departments, hence due to lack of
proper inventory storage time consumption is more for the
execution of material is large.
• There is also a fault in the planning process of the company,
like they tend to change their production according to the
market trends and according to new production process new
inventory is needed hence the inventory that is already
there become wastage for sometimes or for the time when
its need is again felt.

Suggestion:

• Enough space must be provided to the departments so that

all the operations in the company can be carried out
properly.

• The inventory which has been outdated or which is not in

used should be placed at different places other than the
currently used inventory.

• The production planning department should not change their

planning process immediately according to the market
trends because it will lead to main maintenance problem of
inventory and also a lot of money of company got blocked in
already stored inventory.

Fabric Store

In Fabric store fabric is stored according to the color, size

and quantity in racks.The department according to the order
or according to the requirement issues the fabric. There is
about 65 ton of fabric places there in that store.

Limitation:-
• The main I Found on fabric department is that fabric who is
2,3 yrs old is still lying there I that store.

• The helpers there in fabric department are only 5,6 class

pass.They are not properly able to understand the order or
to find the requirement quantity and color of fabric. The
head of that department helped the helpers in finding out
the correct fabric to be issued.

Suggestion:-

• The fabric which is not in used presently should be placed at

some other place meant for that material.

• The helpers must be at least 10 pass so that they can

understand the order properly.

Finished store:-

In this store the goods, which are properly packed and are
ready for dispatch are placed. In store the LIFO system is
being used that the material, which comes last, will go first.
In this inventory is very properly placed in racks. The
marketing department gives the order to them and then
accordingly the material is dispatched as per the order by
marketing department.

Packaging store:-
 The prepared goods are packed in this department. There is
a file being maintained for every article in which the trade
box, stickers, pouch, everything is maintained in that file.

The problem in this department in this department is that

there is a delay in supplying of accessories by the
accessories department.

Dying Store:-

The dying of material in NEVA is done through DUKE. The grey is

dend for dying by the grey store. For these purpose a performa is
there in which operation are to apply on the fabric are written the
various operation include like silicon softening, enzyme wash
compaction.

Dyeing:-

Fabric is dyed as per the requirement and dried for further

processing.

DEPARTMENTS
Production Department
Thread combination used. They used 60 ticket thread and 100-
ticket thread. This 100 ticket thread is more strong is compare to
the 60 ticket thread as so it is used to sew the elastic or
stretchable fabric. The various accessories that are used in the
article primarily comprises of elastic, labels, laces, buttons, etc.
at each of the processes a due consideration to quality checking
was given .The quality check was done while cutting of the
articles, online sewing , after the entire articles, after pressing,
before packing and while packing too.

The total number of machines in the department was about 1500

with 7 units and 5 supervising on and average 30 machines at a
time. There are a few single needle machines to stitch labels to
the articles. There are a overlooking machines, flat looking
machines, flat seminar machines, machines with auto thread
trimmer, machines for embroidery, button holes button stitching
etc.

Also I learnt the importance of laying in cutting, usually before

cutting of the article is done, the clothes is laid on the table in
layers straight and then cut accordingly as how may pieces can
be cut in one go. The process of laying basically help in
decreasing the time taken to cut bulk amount of pieces, help
cutting maximum pieces in one ago, decreased the incurred cost
and standard cutting of pieces is ensured, but the persons set on
the cutting job is not a well trained one or is not accurate and
pieces in his job, there may be chance of bulk wastage. The
unfinished goods that are still undergoing the process of
manufacturing are called work –in-progress.

About 10,000-11,000 pieces both summer and winter wears are

products in a day in affirm. The main defects based by production
that of slandering, dying problem, knitting problem, drafting
problem, bundling problem, wrong needle used etc quality control
has to look defects by broken interlock stitch, over stitching,
knitting faults, machines oil on clothe unsown or improper sewn
pieces, wrong labels, wrong measurement, stitch shipped,
discoloring etc.

Then after the articles is made, it is pressed and checked by the

quality control and packed into the transparent poly bags and
boxes. Mr. Ajay showed me around hoe the packing is done and
highlighted the while packing it must be kept into consideration
that the right size sets into the right sizes boxes, have right price
tags and holograms. They are then sent to the finished goods
departments.

Comments:-

• Absence of the paper assembly line in the production

department which otherwise is very pivotal for saving time,
effort, rate of errors and the exclusive supervision. It also
solves the problem of workers, sitting idle and shifting of the
WIP material from one worker to another and bringing back
again prevailing a lot of confusion.

• Certain elderly people with thick glasses were employed for

the purpose of quality checking.

• When in packing department, three different already packed

products were reopened to show me how they are well
packed, the entire three bore one defect or other.

• Also at time the people at the finished goods store are asked
to repack the content of the package in the dealer desired
manner during which the unskilled people at packaging may
hamper the packing or mispack the article.

Knitting Department:-
There are basically two types of the knitting machines.
Sinker machines which are single knit used in Feona Jersy.
Interlock Machines which is double knit are used in Neva
quilt, Neva Mate etc. In it between two layers of cotton poly
files is done. There are in all 37 machines out of which are
imported ones.
 Comments:-
The machines which are not in use are not kept clean at all
which not only given the department a bad look but also
increases the start up time of the machines.

Marketing Department:-
The entire product range along with their art and wholesale
prices:

Winter Wear:

• Neva Body Warm

• Neva Quilt

• Neva Esancia

• Neva Eleve

• Hot Land

• Pep Thermal

• Track suit

Summer Wear:

• Neva Pep Range

• Neva Maxx Range

• Neva Active Wear

• Neva Mod
 The entire distribution network has been divided in zones
namely North Zone, South Zone, East Zones, Delhi, NCR,
Bihar, Maharastra, Gujrat, Chhatisgarh, Rajasthan,
Uttranchal, and Uttar Pardesh.

MIS Department:-
The various functions of MIS department are:

• To collect facts and figures from various departments

• To have monthly/ quarterly report generation from relevant

figures

• To formulate the system in each and every department in

shape of various requisite formats so as to clarify the doubts
and confusions

• To work for monthly/ quarterly budgets, accounting and

marketing

• To analyze the coating behavior, structure according to the

articles and products

Accounts Department:-
The functions that are performed by accounting department
are:-

• To prepare monthly profit and loss

• To prepare MIS reports

• To keep up-to-date accounts

• To take out the monthly trial balance

• To prepare the reconciliation treatment on monthly basis

• To prepare daily cash flow

• To make computer punching of vouchers regularly

• To issue debtors aging analysis on timely basis

• To issue creditors aging analysis

• To follow up with marketing department for recovery

• To prepare quarterly and half yearly provisional P&L and

balance sheet

• To prepare the financial follow up report and send it to

concerned bank

• To get the balance yarn and fabric report from the stores
monthly

• To ensure proper the business plans and compare it with

accruals

• Preparation and filling of returns

• Filing of income tax returns

• Filing of TDS return

• Finalization of sales tax return

• To make proper allocation of work in staff

Personal Department:-
1) Maintaining various records and statutary forms.
 2) Handling of advance loan programme

3) Calculating monthly pay of employee and yearly and

yearly perks

4) Maintaining office schedule and policies

5) Persona, accident, insurance, and related formalities

6) Handling communication system ( telephone caller, fax,

e.mail and photocopy etc)

7) Fire system and first aid programme

8) Attending company’s guest

9) Personal guest attending system

10) Security and clearance system

11) General store control

12) Handling maintenance department

13) Goods receipt and dispatch control record

Receipt and dispatch department:-

1) To receive the raw material

2) To check the weight and quality of every item

3) To get the quality approval

4) To dispatch up to transport

5) Stock feeding in computer

6) Maintaining all the entries in the receipt and dispatch

register
7) To deliver the various fabrication or the order material to the
respective department

8) To ensure proper storage of packed finished garments

9) Handing the problems

10) To verify the register from accounts department

General store:-
1) To receive goods

2) Checking the items/and the maintaining registers for them

3) Issuing items to various departments

4) Balance checking

5) Pass the purchase indents

E.D.P. department (Electronic data

processing)

1) Designing of new programs

2) Development of programs/reports as per requirements

3) Creation of new application

4) Maintenance of existing system etc.

5) Modification of existing programs

6) Maintaining database, financial packages etc.

7) Maintenance of hardware.
 8) Proper networking of all computers.

9) Ensuring data security through logging and passwords.

10) To loom after the maintenance of all computer

terminal and upgrading them.

INTRODUCTION
1.1 INTRODUCTION OF PERFORMANCE APPRAISAL

Performance appraisal helps to evaluate the

performance and to know the potentials of employees
systematically and periodically which helps in improving the
working of the individual and thus improving the working of
organisation. In other words, performance evaluation is
something of an executive, art and science in itself which
indicates growth of individual and the organisation. There are no
two opinions about the necessity of performance appraisal; the
only thing is which system of performance appraisal is required
by the management to achieve organisational goals.
 According to Alford and Beatty, “Performance Appraisal
is the evaluation or appraisal of the relation worth to the
company of a man’s services on his job”.

There is, says Dulewicz (1989), "... a basic human tendency to

make judgements about those one is working with, as well as
about oneself." Appraisal, it seems, is both inevitable and
universal. In the absence of a carefully structured system of
appraisal, people will tend to judge the work performance of
others, including subordinates, naturally, informally and
arbitrarily.

Performance appraisal is the method of evaluating the behavior

of employees in the work spot, normally including both the
quantitative and qualitative aspects of job performance. It is a
systematically and objective way of evaluating both work related
behaviour and potential of employees.

1.2 OBJECTIVES

Performance appraisal could be taken either for evaluating the

performance of employees or for developing them. The
evaluation is of types: telling the employees where he stands
and using the data for personnel decisions concerning pay,
promotions, etc.

The developmental objectives focus on finding individual and

organisational strengths and weaknesses; developing healthy
superior-subordinate relations; and offering appropriate
counselling/coaching to the employees with the view to develop
his potential in future.

• Helps to strengthen the relationship and communication

between superior – subordinates and management – employees.

• To diagnose the strengths and weaknesses of the individuals

so as to identify the training and development needs of the
future.

• To provide feedback to the employees regarding their past

performance.

• Provide information to assist in the other personal decisions

in the organization.

• Provide clarity of the expectations and responsibilities of the

functions to be performed by the employees.

• To judge the effectiveness of the other human resource

functions of the organization such as recruitment, selection,
training and development.

• To reduce the grievances of the employees.

1.3 PURPOSE

Appraisal of employees serves several useful purposes:

Compensation decisions: It can serve as a basis for pay raises.

Managers need performance appraisals to identify employees
who are performing at or above expected levels. This approach to
compensation is at the heart of the idea that raises should be
given for merit rather than for seniority.

Promotion decisions: It can serve as a useful basis for job

change or promotion. When merit is the basis for reward, the
person doing the best job receives the promotion. If relevant work
aspects are measured properly, it helps in minimising feelings of
frustration of those who are not promoted.

Training and development programmes: It can serve as a

guide for formulating a suitable training and development
programme. Performance appraisal can inform employees about
their progress and tell them what skills they need to develop to
become eligible for pay raises or promotion or both.
Feedback: Performance appraisals enables the employee sto
know how well he is doing on the job. It tells him what he can do
to improve his present performance and go up the
“Organisational ladder”.

Personal development: Performance appraisal can help reveal

the causes of good and poor employee performance. Through
discussions with individual employees, a line manger can find out
why they perform as they do and what steps can be initiated to
improve the performance.

1.4 HUMAN GROWTH, DEVELOPMENT & APPRAISAL

Performance appraisal has been expected to achieve various objectives in a

organisational settings appraisals serve to monitor the efforts of individual ; to
integrate and coordinate individuals efforts into a cooperative endeavour to provide
protection and feedback to the individual ; to provide a means of correcting on
commending the efforts of individuals , and to provide as equitable and consistent
basis of distributing the rewards and penalities.
According to barret , performance appraisals concerns mainly in three purposes:-

a) Administrative decisions:

i.e., promotions, transfers and allocation of financial rewards.

 b) Employee Development:

i.e. identification of training and development al needs an performance

feedback.

c) Personnel Research:

i.e. generation of main power information.

Besides salary and wages determination, performance appraisal is also used

for training and development , career planning , man- job matching, promotion,
helping supervisors know their subordinates, helping the employees know their
achievement and failure.

These all objectives can be put under the classification as INDIVIDUAL,

ORGANISATIONAL, MUTUAL objectives for simplification.

A. INDIVIDUAL OBJECTIVES
• Personal development

• Satisfaction

• Involvement

• Fair and justice compensation

B. ORGANISATIONAL OBJECTIVES
 • Generate manpower information
• Human resource development
• Efficiency and effectiveness
• Developing harmonious and employee relation
• Control rational
• Compensation structure

C. MUTUAL OBJECTIVES

• Growth and development

• Harmony

• Effectiveness

• Profitability

The success of an appraisal system would, therefore, depends on

how far it is able to meet the organisational as well as individual
needs and perhaps the existing dilemma facing appraisal systems
is there in ability to take care of this important fact.

Having identified objectives an organisational intends to

achieve through an appraisal system, it is essential that the
processes through which these are accomplished should be
examined.

The importance or utility of employee performance appraisal

within an organization is really very great. Some plans of
evaluating performance must be used. The plans go by such
names as merit ratings, service appraisal, progress ratings
performance, merit evaluation etc.

These plans serve as a basis for counseling employees about

their strength and weaknesses or for improving their productive
efficiency and supervisory employee relations; they have many
other uses such as in training, compensation and handling
grievances and disciplinary cases.

Evaluation of employee is therefore, applied formally or

informally to all employees-operatives, technical, professional and
executive. A good rating program should encompass all levels
and categories of employees.

Performance appraisal is needed in order to:

 Provide information about the performance ranks basing on

which decision regarding salary fixation, confirmation,
promotion, transfer and demotion are taken.
 Provide feedback information about the level of achievement
and behavior of subordinate.
 Provide information to deficiency in employee regarding skill,
knowledge, determine training and development needs.
 To prevent grievances and in disciplinary activities.
 PERFORMANCE
APPRAISAL
PROCESS
In order to obtain a better understanding of how the performance
appraisal has been put together by provided an overview of the
company’s performance appraisal process. The researcher felt
that the overview of the performance appraisal process would be
necessary, since the process provided a framework for the
performance appraisal.

PRE-APPRASIAL STEPS
 The performance evaluation can be made for variety of
reasons counseling, promotions, salary increases, administration
or combination of these. It becomes very necessary to begin by
stating the objectives of evaluation programs very clearly and
precisely. The personal appraisal system should address the
question who, what, how of performance appraisal.

These questions are the components of these appraisal

systems which are discussed below individually.

“WHO “OF THE APPRAISAL OR ‘’WHO’’ IS TO RATE.

The immediate superior, the head of the department or any

other can rate the performance of an individual. In addition to
this, sum organizations follow the system of self appraisal and /or
appraisal by peers. A group, consisting of his senior, peers and
subordinates, can do appraisal, whoever is rating; he should be
trained and impartial. In most of the organizations the ratings is
done by his immediate superior who is considered the best person
to understand his subordinates strengths and weaknesses. Now a
day some organizations are following the method of self-
appraisal.

THE “WHAT”OF APPRAISAL

It is considered with
  Creating and maintaining a satisfactory level of performance
of employees in their present job.
 Highlighting employee’s needs and opportunities of for
personal growth and development.
 Aiding in decision making for promotions, transfers, layoff and
discharges.
 Promoting understanding between supervisors and his
subordinates.
 Providing a useful criterion for determining the validity of
selections and training methods for attracting individuals of
higher caliber to the organization.
THE ‘WHEN’ OF APPRAISAL

The ‘when’ answers the query the frequency of appraisal?

The informal counseling should occur continuously but the
manager should discuss an employee’s work as soon as he gets
an opportunity to provide positive reinforcement and use poor
work as basis of training. The time and period of appraisal differs
according to the need and nature of the organization.

THE ‘WHERE’ OF APPRAISAL

The where indicates the location where employee should be

evaluated? It is usually done at work place or office of the
supervisor.

THE ‘HOW’ OF APPRAISAL

 Under this, the organization must decide what different kinds
of methods are available and which of these may be used for
performance appraisal. On the basis of comparative advantages
and disadvantages, the nature and philosophy of management
and the needs of an organization; the method of appraisal is
decided.

The performance appraisal process at the companies has been

stated by The

Corporation as consisting of four inter-related steps. The first step

was to establish a common understanding between the manager
(evaluator) and employee (evaluatee) regarding work
expectations; mainly, the work to be accomplished and how that
work was to be evaluated. The second step was an ongoing
assessment of performance and the progress against work
expectation. Provisions were made for the regular feedback of
information to clarify and modify the goals and expectations, to
correct unacceptable performance before it was too late, and to
reward superior performance with proper praise and recognition.
Step three was the formal documentation of performance through
the completion of a performance and development appraisal form
appropriate to the job family.

The final step being the formal performance and development

appraisal

discussion, based on the completed appraisal form and ending in

the construction of a Development Plan. Also noted was that The
considered the performance appraisal process to have been
within the larger content of the other performance related
processes of work planning and salary action.

PERFORMANCE APPRAISAL METHODS

METHODS OF PERFORMANCE APPRAISAL

Methods of performance appraisal

Traditional Methods Modern

Methods

1. Straight ranking method

1.Assessment centre
2. Man-to-man comparison method 2. MBO
3. Grading 3.
Behaviorally
4. Graphic rating sales
anchored rating scales
5. Forced choice description method (BARS)
6. Check lists
7. Free from essay method
8. Critical incidents
9. Group appraisal
 10. Field Forced distribution method

TRADITIONAL METHODS

Ranking method:

In this method of performance appraisal man is compared

as a whole and no attempt is made to fractionize the rate of his
performance. It is the simple process of placing employees in rank
one after from the highest to the lowest based on there overall
performance on the job. It is the best method provided the
number of employees is very small and the work done is of a
quantitative of a nature.

But the greatest limitation of this method is that in practice

it is very difficult to compare individual with human beings having
varying behavior traits.

Paired comparison techniques:

By this technique each employee is compared every trait with
all other persons in pairs one at a time. With this technique,
judgment is easier and simpler than with the ordinary ranking
method. The number of times each individual is compared with
another is tallied on a piece of paper. These numbers yield the
rank order of the entire group.

The number of decisions is determined by the formula.

Number of comparisons = N (N-2); where N represents the
number of persons to be compared.The results of these
comparisons are tabulated and a rank is assigned to each
individual.

AS A B C D E
COMPARE
DTO
A + + - -
B - - - -
C + + -
D + + - +
E + + + -

AS A B C D E

COMPAR
EDTO
A - - - -
B + - + +
C + + - +
D + - + -
E + - - +
Man-to-man comparisons:

One of the first attempts to break the person’s performance

apart at analyze its components was the person-to- person rating
system, used by the army during the world war 1st. Certain factors
such as leadership, initiative and dependability were selected for
purposes of analysis. A scale was designed for each carefully
defined factor. Instead of defining varying degrees of leadership,
particular people were used to represent these degrees. The rater
had to develop his or her own scale by evaluating the leadership
qualities of persons known in the past. The person who
demonstrated the highest degrees of leadership was placed at
the upper end of the scale and particular other key people were
assigned to the lowest and intervening degrees. Thus a scale of
persons was created for each selected factor.

Grading method:

In grading system, certain categories of worth such as

excellent, very good, average, poor, very poor, etc. are
established in advance and these are carefully defined. The actual
performance of each employee is then compared with these
grades which best describes his performance. The grading system
is sometimes used as a force distribution system, in which certain
percentages are fixed for each grade such as 10% of the total
personnel must go into the top grade, 20% to the second and so
on. It also taxes the rater’s performance. This system is not useful
in a small group.

Graphical scale method:

It is an approach similar to man-to-man comparison but with

the difference that the degree so the factor scales are
represented by definitions rather than by key people. Numerical
values are assigned to each quality on the scale. Three to five
degrees are possible for each factor. The selection of factors to be
measured is the most important part of the system. There may be
two types of factors- (1) employee characteristics, and (2)
employee contributions. The characteristics denote the quality of
the person such as dependability, ability, initiative, leadership etc.
the contribution assumed and specific job accomplished.

Forced choice description method

This method aims to reduce or eliminate the possibility of

rater’s bias by forcing a choice between descriptive statements of
seemingly worth. A number of statements describing the
employees are prepared and the rater is forced to choose among
the descriptive statements. The statements may be favorable or
unfavorable. For example, the rater might be asked to state which
of the two statements given below is more descriptive of the
employee in question;

1. Gives good clear instructions to his subordinates;

2. Can be depended upon to complete any job assigned.
Even if the rater feels that neither of the two statements in
the pair is applicable, he must select the one that is more
descriptive. Only one of the statements is correct in identifying
the better performance and the scoring key must be kept secret
from the raters.

Check list method

 Under this method the rater does not evaluate but reports
employee performance and the personnel department does final
rating. Under this system, checklist questionnaire is prepared in
the form of series of questions concerning persons and employee
answers the questions in ‘yes’ or ‘no’. On the basis of check list
completed by the rater rating is made by the personnel
department. The different statements made by the employee may
be awarded weights. The total of these weights gives the merits
of an employee.

This system is subject to bias or prejudice of the rater. It is

difficult to assemble, analyze and weigh a number of statements
about employee characteristics and contributions. Therefore, this
system is suitable only when the supervisor has the complete
knowledge of the job and the employees.

Free essay method Under this method, the supervisor makes a

free form, open-ended appraisal of an employee in his own word
and puts down his impressions about the employee. He takes
note of these factors:

a. Relationship with fellow supervisors and personnel assigned to

him;
b. General organization and potential;
c. Job knowledge and potential;
d. Employee characteristics and attitudes;
e. Understanding and application of company policies and
procedures;
f. Production, quality and cost control;
g. Physical; conditions; and
h. Development needs for future.
The description is always as factual and concrete as
possible. NO attempt is made to evaluate an employee in a
quantitative manner.

There are several advantages of this method. An essay can

provide a good deal of information, especially if the supervisor is
asked, for instance, to give two or three examples of each
judgment he makes. The explanations will give specific
information about the employee, and can reveal even more about
the supervisor.

HUMAN ASSETS ACCOUNTING METHOD

Critical incident method

This technique involves three steps. T test of noteworthy

(good or bad) on-the-job behavior, usually of specific instances, is
first prepared. A group of experts then assigns scale values to
them, depending upon the degree of desirability for the job. The
third step is constructing a checklist that includes incidents, which
define “good” or “bad” workers. Subsequently, supervisors use
these lists for evaluating the worker. This method helps to identify
key areas in which employees are weak or strong. It emphasizes
rating on objective evidence rather than on the subjective
evaluation of traits. Finally, the supervisor finds counseling easier
since he knows his subordinates’ weakness.
Group appraisal method

Under this method, the rating is made not by a single rater,

but by a group of supervisors who sit together and evaluate the
performance of the employee. The group consists of the
immediate supervisor and two or three other supervisors of
higher managerial personnel having knowledge of the employee.
The group consists of the immediate supervisor and two or more
supervisors of higher managerial personnel having knowledge of
the employee under review. This method is objective in appraisal
and constructive in approach. It does not allow the element of
bias. However, the system is time-consuming.

Field review method or interview method

Under this method, an expert from the personnel

department interviews supervisors. The expert questions the
supervisors to obtain all the pertinent information on each
employee and makes a record. They are also asked to suggest
measures for improvement in employee’s performance. These
notes are sent to the supervisor concerned for his approval or
modifications. Thus the employee is rated as a whole. If the
interviewer is competent and the supervisors co-operate with the
interviewer this system may be very useful, even for large
enterprises.

MODERN METHODS
Appraisal by results or management by objectives
Peter Druker has evolved this method. MBO is potentially a
powerful philosophy of managing and an effective way for
operationalising the evaluation process. It seeks to minimize
external controls and maximize internal motivation through joint
goal setting between the manager and the subordinate and
increasing the subordinate’ own control of his own work. It
strongly reinforces the importance of allowing the subordinate to
participate actively in the decisions that affect him directly.

Management by objectives can described as “ process

whereby the superior and subordinate managers of an
organization jointly identify its common goals, define each
individuals’ major areas of responsibility in terms of results
expected for him and use these measures as guides for operating
the unit and assessing the contributions of each of its members”.

Peter Drucker has evolved this method. MBO is potentially a

powerful philosophy of managing and an effective way.

The management by objectives concept is a basic technique.

The application of this technique often succeeds or fails because
of its interpretations.

Definition:

The system of management by objectives can be described

as a process whereby the superior and subordinate managers of
an organization jointly identify its common goals, define each
individual's major areas of responsibility in terms of the results
expected of him, and use these measures as guides for operating
the unit and assessing the contribution of each of its members.

Management by objectives is not a new technique. It was

introduced as a supplementary management tool by Alfred Sloan
in the early 1950s; however, Peter Drucker is credited with
making it a central management concept in his classic
management book, The Practice of Management, in 1954.

This method of personnel evaluation followed closely after

Drucker's introduction of MBO.

During the late 1960s and early 1970s, MBO seemed to

emerge as the dominant tool for organizational management. But
many applications met with failure. The concept was challenged,
and many discard it as a theoretical idea that could not be applied
in practical situations. The causes of failure were in the
implementation; they were not in the basic procedure.

Behaviorally Anchored Rating Scales (BARS)

This is a new appraisal technique, which has been recently

developed. The procedure for BARS is usually five stepped.

 Generate Critical Incidents. Person who have the knowledge

of a particular job are asked to describe situations or
incidents whereby the effectiveness or ineffectiveness of an
individual’s performance can be judged.
  Develop performance dimensions. The incidents are then
clustered into smaller sets of performance dimensions and
each dimension is the defined.
 Relocate incidents: any groups of people who also have
knowledge then relocate the incidents.
 Rating of level of performance for each incident.
 Development of the final instrument. A set of incidents is
used as “behaviour anchors” for the performance
dimensions.
For example,

The BARS for the trait “knowledge and judgment” of salesman at

a store

 Extremely good performance 7

 Good performance 6
• He is aware of prices of variety of products available at
the store.
• Knows where what is kept.
• Reacts spontaneously to the customer’s queries and
requests.
• Able to provide information as requested by the
customer.
 Slightly good performance 5
• When in doubt he is ready to check out about he price
with a colleague
• Tries to sort out the customer’s queries and requests.
  Neither good nor bad performance 4
• Does not do more than he is asked to
• Tries to sort out the customer’s queries and requests.
 Slightly poor performance 3
• May be seen spending time in discussion about other
things not related to the stores products.
• May not notice the entry of the customer at times
 Poor performance 2
• In order to take a break he may lie to the customer
about unavailability of stock
• Is not able to solve requests and queries of the
customer.
 Extremely poor performance 1
A number of critical incidents may be collected and grouped
into say following performance criteria:

Knowledge and judgment

Skill in human relations

Convincing ability

Skill in monetary transactions

Though BARS is a more time consuming process but it has

some advantages:
 Results are sufficiently accurate, since it is thought BARS is
a more time consuming process but it has some advantages one
by persons expert in the particular field.

It sets clear standards. The critical incidents along the scale

help to clarify what is meant by “extremely good performance,
average performance and so forth.

The use of this method may be useful in giving feedback to

the persons being appraised.
 The technique is not biased by the evaluation of the rater.

Along with being an essay method using the critical

incident approach, the second section had a variation. The
variation from the critical incident approach has been the use of
the Importance and Effectiveness Rating Summary the
Importance and Effectiveness Rating Summary, the relative
importance of the factors (from the factors and definition area) to
the employee's job during the review period were put on a
graphic rating scale.

The scale went from low to high. If the factor has nothing
to do with the current job or effectiveness, not applicable was
checked. Upon determining the importance of the job, the
manager placed an I in the appropriate rating cell. The next step
was the effectiveness rating. With the effectiveness rating, the
manager placed an E in the appropriate cell. The effectiveness
rating was based on the person’s typical level of performance
during the review period. This scale had been integrated with the
importance rating and was rated from low to high with the same
scale as the importance rating.

The rating summary scale appeared as a large matrix with

the performance factors listed in a column on the left and with
nine rating cells for each factor on the right. The goal of the
effectiveness rating has been to provide the employees with
diagnostic feedback of his or her weaknesses. Managers were
warned that a varied profile should emerge and that a flat profile
should be avoided since it has been considered unlikely that an
employee could perform equally effective or ineffective on all
factors.

Besides differentiating the strengths and

weaknesses of an individual relative to the individual, the
manager has [o nave differentiated between the effectiveness
levels of all employees within the same job family on any given
factor. The reason has been to provide realizing to the
performance effectiveness rating so that it has been focused on
performance only. Considerations such as job grade level,
experience, education, or

other personal factors were ignored. The importance and

Effectiveness Rating

Summary once completed has been used as a diagnostic profile.

The diagnostic profile has been the basis for the development
plan.

360 Degree Feedback

360 degree feedback is the most comprehensive and

costly type of appraisal. It includes self ratings, peer review, and
upward assessments; feedback is sought from everyone. It gives
people a chance to know how they are seen by others; to see
their skills and style; and may improve communications between
people.

360 degree feedback helps by bringing out every aspect of

an employee's life. Cooperation with people outside their
department, helpfulness towards customers and vendors, etc.
may not be rewarded by other types of appraisal. This system
also helps those who have conflicts with their manager.
 360 degree feedback generally has high employee
involvement and credibility; may have the strongest impact on
behavior and performance; and may greatly increase
communication and shared goals. It provides people with a good
all-around perspective.

The 6-Step Performance Appraisal Meeting Model

An effective performance appraisal meeting can be viewed as a

process consisting of 6 steps:

Building a Relationship of Mutual Trust

Opening the Meeting

Identifying and Exploring Accomplishments and

Concerns

Developing an Improvement Plan

Overcoming Defensiveness
 Evaluating and Rating Employee
Performance

Problems with the Appraisal

In reviewing the performance appraisal used by the company, the appraisal

has been found to be in conflict with some of the purposes of the developmental

approach. The problems noted by the researcher were as follows:

1. Judgemental Error: people commit mistakes while evaluating people and

their performances. Biases and judgemental error of various kinds may spoil the
show. Bias here refers to distortion of a measurement. These are of various
kinds:
o First Impression: The appraiser’s first impression of a candidate may
colour his evaluation of all subsequent behaviour. In this case of negative
primary effect, the employee may seem to do nothing right; in this case of a
positive primary effect, the employee can do no wrong.

o Halo effect: The halo error occurs when one aspect of the subordinate’s
performance affects the rater’s evaluation of the other performance
dimensions. The rater rates on the basis of high performance, low absentism.
 o Horn effect: The rater’s bias is in the other direction, where one negative
quality of the employee is being rated harshly.

o Leniency: depending upon rater’s own mental make-up at the time of

appraisal, raters may be rated very strictly or very leniently. Appraisers
generally find evaluating others difficult, especially where negative ratings
have to be given.

o Central tendency: An alternative to leniency effect is the central tendency,

which occurs when appraisers rate all employees an average performers.

o Recency effect: In this case, the rater gives greater weight age to recent
occurrences than earlier performance.

2. POOR APPRAISAL FORMS:

The appraisal process might also be influenced by the following factors relating to
the forms that are used by raters:

• The rating scale may be quite vague and unclear.

• The rating form may ignore important aspects of job performance.
• The rating scale may contain additional, irrelevant performance dimensions.
• The forms may be too long and complex.

3. LACK OF RATER PREPAREDNESS:

 The raters may not be adequately trained to carry out performance
management activities. This becomes a serious limitation when the technical
competence of a rate is going to be evaluated by a rater who has limited functional
specialisation in that area. The appraisers should not have vague and unclear
objectives in his mind.

4. INEFFECTIVE ORGANISATIONAL POLICIES AND PARCTICES

BENEFITES OF APPRAISAL SYSTEM

BENEFITS TO THE EMPLOYER

 Improved performance of individual and department

 Identification of their unique strengths
 Improved relationship
 Identification of staff weakness
 Identification of existing problem
 Rectify their mistakes and get ahead.
 Identification of potential
 Increased opportunity to communicate companies
objective
 Helps in implementing strategic goals easily
 Clarify performance expectations

BENEFITS TO THE EMPLOYEE

 Opportunity to express own views

 Opportunity to find about own strengths and weaknesses
  Find out the areas in which to increase the delegation
 Increased opportunity to praise and conduct
 To demonstrate own managerial skills

BENEFITS TO THE ORGANISATION

 Improved performance of individuals, departments

 Improved profitability, efficiency and quality of production
 More reliable companies training needs
 Increased ability to evaluate value of training provided
 \More reliable information relating to manpower planning
 More accurate assessment of potential individuals and
department

PERFORMANCE COMMUNICATION AND THE

DESIRED CHANGE

The purpose of an appraisal system will be served only when it

throws out relevant information which increases the effectiveness
of the individual and provides the direction for change , if any,
needed. The appraisal results would certainly have a message for
the subordinates which may be positive or negative warranting a
change in his/her behaviour. The desired change will occur only if
it is communicated and followed properly, otherwise the system
will serve the purpose of merely record keeping and defeat the
very basis of its existence in the organisation.
 Communication of the performance involves interpersonal
transactions among the superior and the subordinates. This
communication is famously known as performance feedback.

The term “feedback” owes its existence to the

engineering sciences. It meant “an automatic signalling system
which indicates the degree of performance or non-performance”
of a machine. In the realm of human behaviour it connects “a
direct perceptual report of the result of one’s behaviour upon
another person”. It provides basis to the person to judge whether
his behaviour is functional to the counter-functional to the
objectives he is striving for and the reasons thereof.

HOW TO GIVE AND RECIEVE FEEDBACK

Feedback is a very sensitive interpersonal transactions between

a superior and subordinates as such needs to be handled with
extra care. Its effectiveness will depend both on the giver and the
receiver. Both the parties have to keep several factors in their
mind during the course of a feedback session.

The following points need to be kept in mind while

communicating the feedback to the subordinates.

• Feedback focussed on the behaviour of a person

• Feedback should re-inforce positive new behaviour
• Feedback should be data based and not impressionistic
• Feedback should be suggestive
• Feedback must be continous
• Feedback should be need based and solicited
• Feedback must be intended to help the person
• Feedback must be well-timed

OBJECTIVES
• To study the performance appraisal procedure in Neva
Garment Ludhiana.

• To study the satisfaction of the performance appraisal of

employee regarding performance appraisal in
NevaGarments.
 RESEARCH
METHODOLOGY
1 INTRODUCTION
Research is defined as human activity based on intellectual
application in the investigation of matter. The primary purpose for
applied research is discovering, interpreting, and the
development of methods and systems for the advancement of
human knowledge on a wide variety of scientific matters of our
world and the universe. Research can use the scientific method,
but need not do so.

Methodology can be defined as:

"the analysis of the principles of methods, rules, and postulates employed by
a discipline";
"the systematic study of methods that are, can be, or have been applied
within a discipline"; or
"a particular procedure or set of procedures."
 This project is based on information collected from primary and secondary
sources. After the detailed study, an attempt has been made to present
comprehensive analysis of wants of employees working in Neva Garments. The
data had been used to cover various aspects like whether the employees are
satisfied with the performance appraisal system, whether they are getting
promotion after performance appraisal, effects of performance appraisal system,
benefits & problems of performance appraisal system, what is the response of the
employees whether they want any change in the performance appraisal system or
not.
Title of the research problem-

To gain an insight into employees’ perspective regarding

performance appraisal at Neva Garments.

2 RESEARCH DESIGN

Data Collection Tool

While conducting this research, both primary and secondary

data was used. Questionnaire has been used as the data
collection tool for primary data. The questionnaire consisted of 10
questions. Almost all questions were closed ended questions and
the respondents were asked to mark the most appropriate choice.

The secondary data has been collected from sources such as

various websites, books, Company’s manual etc.

3 SAMPLE SIZE AND TECHNIQUES-

In random sampling, all items have some chance of selection that
can be calculated. Random sampling technique ensures that bias
is not introduced regarding who is included in the survey. Five
common random sampling techniques are:

Simple random sampling

Systematic sampling

Stratified sampling

Cluster sampling

Multi-stage sampling

SIMPLE RANDOM SAMPLING

With simple random sampling, each item in a population has an

equal chance of inclusion in the sample. For example, each name
in a telephone book could be numbered sequentially. If the
sample size was to include 2,000 people, then 2,000 numbers
could be randomly generated by computer or numbers could be
picked out of a hat. These numbers could then be matched to
names in the telephone book, thereby providing a list of 2,000
people.

The advantage of simple random sampling is that it is simple

and easy to apply when small populations are involved. However,
because every person or item in a population has to be listed
before the corresponding random numbers can be read, this
method is very cumbersome to use for large populations.
SYSTEMATIC SAMPLING

Systematic sampling, sometimes called interval sampling, means

that there is a gap, or interval, between each selection. This
method is often used in industry, where an item is selected for
testing from a production line (say, every fifteen minutes) to
ensure that machines and equipment are working to specification

STRATIFIED SAMPLING

A general problem with random sampling is that you could, by

chance, miss out a particular group in the sample. However, if you
form the population into groups, and sample from each group,
you can make sure the sample is representative.

In stratified sampling, the population is divided into groups

called strata. A sample is then drawn from within these strata.
Some examples of strata commonly used by the ABS are States,
Age and Sex. Other strata may be religion, academic ability or
marital status.

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling, but involves

selecting a sample within each chosen cluster, rather than
including all units in the cluster. Thus, multi-stage sampling
involves selecting a sample in at least two stages. In the first
stage, large groups or clusters are selected. These clusters are
designed to contain more population units than are required for
the final sample.

The Sample size for this survey is 50 and random sampling was
used to analyze the data. It means the people that have been
interacted with for the survey have been selected on random
basis or probability basis so that a big population can be covered
under 50 people only.

Sample size is 50.

4 ANALYSIS TECHNIQUES

Each question of the questionnaire has been separately

analyzed and simple percentages have been calculated.

ANALYSIS
QUESTIONNAIRE ANALYSIS
1. REGULARITY OF PERFORMANCE APPRAISAL SYSTEM

PARTICULARS NO. OF PERCENTAGE

RESPONDENTS
MONTHLY 5 10%
QUATERLY 10 20%
HALF YEARLY 10 20%
ANUALLY 25 50%
The above diagram shows that performance appraisal is being
conducted annually, in Neva.

2. APPRAISER

PARTICULARS NO. OF PERCENTAGE

RESPONDENTS
IMMEDIATE 15 30%
SUPERVISOR
HR MANAGER 10 20%
HR HEAD 20 40%
ANY OTHER 5 10%
 The above diagram shows that the performance appraisal is
done through the immediate superior.
 3. EFFECTS OF PERFORMANCE APPRAISAL

PARTICULARS NO. OF PERCENTAGE

RESPONDENTS
VERY GOOD 30 60%
GOOD 10 20%
SATISFACTORY 5 10%
NOT 5 10%
SATISFACTORY

Out of all respondents 60% said that there is very good

effect of appraisal, 20% said that it is good,10%said that it is
satisfactory and 10% said that they are not satisfied
 4. METHODS OF PERFORMANCE APPRAISAL

PARTICULARS NO. OF PERCENTAGE

RESPONDENTS
SELF APPRAISAL 15 30%
360* APPRAISAL 0 0%
GROUP APPRAISAL 10 20%
ANNUAL 25 50%
CONFIDENTIAL
REPORTS

Out of 50 respondents 30% says that self appraisal method

is used, 20% says that group appraisal method is used, and rest
50% says that annual confidential reports are used.

5. BENEFITS OF PERFORMANCE APPRAISAL

PARTICULARS NO. OF PERCENTAGE
RESPONDENTS
IDENTIFICATION OF 25 50%
STRENGTHS &
WEAKNESSES
INCREASE IN 10 20%
PRODUCTIVITY
IMPROVEMENT IN 10 20%
EFFICIENCY
To identify training 5 10%
needs

Out of all employees 50% said that the strengths &

weaknesses are identified, 20% said that there is increase in
productivity and rest of the 20% said that there is improvement in
efficiency and 10%said that the identify trining needs.

6. PROBLEMS IN PERFORMANCE APPRAISAL SYSTEM

PARTICULARS NO. OF PERCENTAGE
RESPONDENTS
YES 15 30%
NO 35 70%

30% employees are satisfied with the performance appraisal

system and 70%employees are not satisfied with performance
appraisal.

7. PROBLEMS IN THE CHANGES IMPLEMENTED

PARTICULARS NO. OF PERCENTAGE
RESPONDENTS
ALWAYS 0 0%
SOMETIMES 5 10%
RARELY 10 20%
NEVER 35 70%

Out of 50 respondents 10% says that Sometimes there is a

problem in the changes implemented in the performance
appraisal system, 20% says that they found problem in the
performance appraisal system very rarely and rest 70% says that
they never found any problem in the performance.

8. HELPFUL TO CHALK OUT STRENGTHS OR WEAKNESSES

PARTICULARS NO. OF PERCENTAGE
RESPONDENTS
CERTAINLY 18 36%
UPTO SOME 10 20%
EXTENT
UPTO GREAT 20 40%
EXTENT
NEVER 2 4%

Out of 50 respondents 40% says that performance appraisal

help them to chalk out strengths and weaknesses up to a great
extent, 20% says that performance appraisal help them to chalk
out strengths and weaknesses upto some extent and rest 4%
says that it is not helpful to chalk out strengths
&weaknesses,36%says that performance appraisal help them to
chalk out certainity.
 9. Result of aapraisal system is know to you

PARTICULARS NO. OF PERCENTAGE

RESPONDENTS
YES 10 20%
NO 40 80%

20% respondents said that methods of appraising

performance of executives and 80%respondents said that
methods of performance of non executives are not different.
 10. SATISFACTION LEVEL OF PERFORMANCE
APPRAISAL SYSTEM

PARTICULARS NO. OF PERCENTAGE

RESPONDENTS
YES 35 70%
NO 15 30%

Out of 50 respondents 70% said that they are satisfied with

the performance appraisal method being used and rest 30% said
that they are not satisfied with the performance appraisal method
being.
 FINDINGS
After analyzing, it came into notice that the performance
appraisal is being conducted annually in Neva. The appraisal is
done through the immediate superior and head of department.

In various questionnaires, I have found that most of the

respondents are satisfied with the effects of performance
appraisal system. Mostly, the annual confidential report system of
performance appraisal is used in the organization.

In this survey, I have found that most of the employees said

that there is increase in productivity & efficiency of employees
after performance appraisal. It also helps in determining strengths
and weaknesses of the employees.

After the changes implemented in performance appraisal

system, there were problems but up to some extent. The methods
are changing in last 10yrs like group appraisal & self appraisal
etc., but most of the times annual confidential reports are used.

The performance appraisal system is very good as more

than 50% of employees said that they are satisfied with the
performance appraisal system.
 LIMITATIONS OF THE
STUDY

In attempt to make this project authentic and reliable, every possible aspect of
the topic was kept in mind. The main limitations are as follows:
• This study is limited to only one organization (Neva garments Limited). So
results cannot be applied to others.
• This study is limited to only one organization (Neva garments Limited). So
results cannot be applied to others.
• The employees were hesitant to disclose the true facts.
• The chance of biased response can’t be eliminated though all necessary steps
were taken to avoid the same.
• After sampling only few employees were selected for survey so these results
may not applied to all employees.
 CONCLUSION
In the nutshell we concluded that Performance Appraisal plays
very important role in the company. Performance Appraisal has
been done in good manner. They prepare annual confidential
report for Performance Appraisal, but some times employees
have faced many problems or they were not satisfied due to
Performance Appraisal.
RECOMMENDATIONS
 Appraisal system should be clearly discussed with the
appraisee.
 Employees should be told about the long – term strategy of
the organization.
 Parameters of performance appraisal should be clearly
defined.
 Special marks should be given to those employees who give
meaningful suggestion to the organization.
 Ratings should be communicated to all the employees in a
proper manner.
 Training system should be improved.
 SUGGESTIONS
The performance appraisal plan should be followed frequently.
The follow-up programs should most probably be made
monthly. New employees should be rated more frequently.

• The appraisal should be done after every six months and the
records of an employee’s performance should be kept on
monthly basis.
• The employees should be given feedback about the
performance appraisal so that they are able to know their
strengths and weaknesses.
BIBLIOGRAPHY

BOOKS REFERRED:

 Arma Strong “Human Resource management”

 Gary Dessler “Human Resource management”
 Fillipo “Personnel management” McGraw- Hill
 Harold Koontz Heinz Weihrich “Essentials of Management”
Tata McGraw-Hill
WEBSITES:
http://www.socialsearchmethods.net/kb/sampnon.php
http://www.performance-appraisal.com/intro.htm
APPENDIX-1

QUESTIONNAIRE
Please fill in the following questionnaire according to
your knowledge and experience. The data so collected
would be used for research purpose only.

Q1. How regularly performance appraisal is being conducted in

your Organization?

Monthly Quarterly

Half yearly Annually

Q2. Who is the appraiser?

Immediate supervisor HR head

HR manager Any other

Q3. What are the effects of performance appraisal?

Very good Good

Satisfactory Not Satisfied

Q4. Which of the methods is being used?

Self appraisal Group Appraisal

360 appraisal Annual confidential

Q5. What are the benefits of performance appraisal to the

Organization?

Identification of strengths & weaknesses of the employees

Increase in productivity & efficiency

Improvement in performance

Any other, then please specify _________________________

Q6. Are there any problems in performance appraisal system?

Yes

No

If Yes, then specify ___________________________________

Q7. Are there any problems in performance appraisal system

implemented?

Always Sometimes

Rarely Never
Q8. Is there any change in performance appraisal system from
last 10 years?

Yes

No

Q9. Does performance appraisal help you to chalk out your

strengths and

weaknesses?

Certainly Up to a great extent

Up to some extent Never

Q10. Are methods of appraising performance of executives and

non executives same or different?

Yes

No

If No, then please specify _____________________________

Q11. Are you satisfied with the performance appraisal method

being used?

Yes
 No

If Yes, then please specify _________________________

Q12. Do you want any change in the performance appraisal

system?

Yes

No

If Yes, then please specify __________________________

Name:

......................................................................................

Age: ................................................................................

......

Designation: ................................................................................

...... Qualification:

......................................................................................
Address:

......................................................................................