CHAPTER - I

ABOUT THE TOPICS

PERFORMANCE APPRAISAL
Performance appraisal may be defined as a structured formal interaction between a
subordinate and supervisor, that usually takes the form of a periodic interview (annual or
semi-annual), in which the work performance of the subordinate is examined and discussed,
with a view to identifying weaknesses and strengths as well as opportunities for improvement
and skills development. Performance appraisal, also known as employee appraisal, is a
method by which the job performance of an employee is evaluated (generally in terms of
quality, quantity, cost and time). Performance appraisal is a part of career development.
Performance appraisals are regular reviews of employee performance within organizations.
Generally, the aims of a performance appraisal are to:

Give feedback on performance to employees.

Identify employee training needs.

Document criteria used to allocate organizational rewards.

Form a basis for personnel decisions: salary increases, promotions,

disciplinary actions, etc.

Provide the opportunity for organizational diagnosis and development.

Facilitate communication between employee and administration

Validate selection techniques and human resource policies to meet federal Equal Employment
Opportunity requirements.
Definition:
Performance appraisal is an objective assessment of an individuals performance against
well defined benchmarks.
Performance appraisal is defined by Wayne Cascio as the systematic description of
employees job relevant, strength, weakness.

Performance Appraisal Summary

Performance appraisal, while enabling a manager to identify the training needs of
employees, and evolving a training plan for them, also, serves to meet other objectives.
Performance appraisal satisfies the psychological needs individuals have to know how they
are performing their job and increases employees' job satisfaction and morale by letting them
know that the manager is interested in their progress and development. Systematic
performance appraisal also provides both the firm and the employee a careful evaluation,
rather than a snap judgement of an employee's performance. Many firms use performance
appraisals to plan placements and transfers and to provide input into decisions regarding
salary increases, promotions, and transfers. Finally, performance appraisals may be used as a
basis for the coaching and counselling of individual employees by their superiors. To
summarize the uses of performance appraisal:

Performance improvement

Compensation

Placement

Training & development needs assessment

Career planning

Job design error detection

PURPOSE OF PERFORMANCE APPRAISAL

To create and maintain a satisfactory level of performance.

To provide information making decision for rewardingly of retrenchment etc.
To guide the job changes with the help to continuous ranking.
To contribute to the employee growth and development through training, self and

management development program.

To facilitate for testing and validating selection tests, interview techniques through
compeering there scores with performance appraisal ranks.
To facilitate fair and equitable compensation based on performance.
To help the superiors to have proper understanding about there subordinates.

CHARACTERISTICS OF AN APPRAISAL SYSTEM

Performance appraisal cannot be implemented successfully unless it is accepted by all

concerned. There should be a common and clear understanding of the distinction between
evaluation and appraisal. As Patten (1982) argues, evaluation aims at 'objective'
measurement, while appraisal includes both objective and subjective assessment of how well
an employee has performed during the period under review. Thus performance appraisal aims
at 'feedback, development and assessment.' The process of performance appraisal should
concentrate on the job of an employee, the environment of the organization, and the
employee him- or herself. These three factors are inter-related and inter-dependent.
Therefore, in order to be effective, the appraisal system should be individualized, subjective,
qualitative and oriented towards problem-solving. It should be based on clearly specified and
measurable standards and indicators of performance. Since what is being appraised is
performance and not personality, personality traits which are not relevant to job performance
should be excluded from the appraisal framework.
Some of the important considerations in designing a performance appraisal system are:
Goal The job description and the performance goals should be structured, mutually
decided and accepted by both management and employees.
Reliable and consistent Appraisal should include both objective and subjective ratings to
produce reliable and consistent measurement of performance.
Practical and simple format The appraisal format should be practical, simple and aim at
fulfilling its basic functions. Long and complicated formats are time consuming, difficult to
understand, and do not elicit much useful information.
Regular and routine While an appraisal system is expected to be formal in a structured
manner, informal contacts and interactions can also be used for providing feedback to
employees.
Participatory and open An effective appraisal system should necessarily involve the
employee's participation, usually through an appraisal interview with the supervisor, for
feedback and future planning. During this interview, past performance should be discussed
frankly and future goals established. A strategy for accomplishing these goals as well as for
improving future performance should be evolved jointly by the supervisor and the employee
3

being appraised. Such participation imparts a feeling of involvement and creates a sense of
belonging.
Rewards Rewards - both positive and negative - should be part of the performance
appraisal system. Otherwise, the process lacks impact.
Feedback should be timely Unless feedback is timely, it loses its utility and may have
only limited influence on performance.
Impersonal feedback Feedback must be impersonal if it is to have the desired effect.
Personal feedback is usually rejected with contempt, and eventually de-motivates the
employee.
Feedback must be noticeable The staff member being appraised must be made aware of
the information used in the appraisal process. An open appraisal process creates credibility.
Relevance and responsiveness Planning and appraisal of performance and consequent
rewards or punishments should be oriented towards the objectives of the programme in which
the employee has been assigned a role. For example, if the objectives of a programme are
directed towards a particular client group, then the appraisal system has to be designed with
that orientation.
Commitment Responsibility for the appraisal system should be located at a senior level
in the organization so as to ensure commitment and involvement throughout the management
hierarchy.
METHODS OF APPRAISAL
Broadly all the approaches to appraisal can be classified into: Past-oriented:
Rating scales
Checklist
Forced choice method
Forced distribution
Critical incident method
Behaviorally anchored scales
Field review method
Annual confidential report
4

 Essay method
Cost accounting approaches
Comparative evolution approach
Ranking method
Paired comparison method
Future oriented:
Management by objectives
Psychological appraisals
Assessment center

METODS OF PERFORMANCE APPRAISALS

Past Oriented Methods
Rating scales:
This is the simplest and the most popular technique for employee performance.
The typical rating scales system consists of several numerical scales, each
representing job related performance criterion such as dependability, initiative output,
attendance, attitude, co-operation and the like. Each scales ranges from excellent to
poor. The rater checks the appropriate performance level on each criterion, and then
computes the employees total numerical scores.
Checklist:
In this method, the raters dont evolutes employee performance, he supplies
reports about it and the personal department does the final rating a series of question
are presented concerning and employee to his behavior. The rater, then, to indicate if
the answer to a question about an employee in positive or negative. Generally , the
questions are on yes/no pattern.
Forced choice method:
In this the rate is given a series of statements about employee. These statements
are arranged in block of two or more, and the rater indicates which statements is most
or least disruptive of the employee
Critical incident method
The, approaches focus on certain critical behaviors of an employee that makes all
the difference between effective and non effective performance of a job. Such
incidents are recorded by the superiors as and when they occur.
Behaviorally Anchored Rating Scales
Sometimes this is called behavioral expectation scales, are rating scales whose
scale point are determined by statements of effective and ineffective behaviors. A rater

must indicate which behavior on each scale best describes an employees

performance.
Field review method
This is an appraisal by someone outside the assesses on department usually
someone from the corporate office or H.R department. The outsider review employee
records and holds interviews with the rate and his or her superior . the method is
primarily used for make promotional decision at the managerial level.
Annual confidential report method
In this method each employee is rated confidentially by one or more senior
officers for his performance. The report deals with the years work and general opinion
of the rater towards the employee. The main problem with his method is that it is not
data based and the appraisal is done the bases of impression
Easy method
In the essay method, the rater must describe the employee with in a number of
broad categories such asa) The raters overall impression of the employees performance
b) The promo ability of the employee
c) The jobs that the employee is now able or qualified to perform
d) The strength and weaknesses of the employee and the training and the
development assistant required the employee.
Comparative Evolution Approaches
These are a collection of a different methods that compare one workers
performance with that his / her co-workers. Supervisors usually conduct comparative
appraisals. As these appraisals can result in a ranking from best to worst they are
useful on deciding merits-pay increases promotions and organizational rewards. We
can classify it intoa) Ranking method
In this, the superior his or her subordinates in the order of there merits starting
from the best to the worst,. This method is subject to the hallo and Recency effects,
although ranking by two or more raters can be averaged to help reduce biases. It
advantages include ease of administration and explanation.
b) Paired Comparison method :Under this method the appraiser compares each employee with every other
employee, one at a time. The number of comparisons may be calculated with the help
of formula, which reads thus-:
ROLE OF PERFORMANCE APPRAISAL

We've seen from previous discussions, that people are one of a company's most
valuable assets. While most assets depreciate over time, people, viewed as assets, may
actually appreciate. One of the manager's major responsibilities is to improve and update the
knowledge and skills of employees -- appreciation of assets. Performance appraisal plays a
significant role as a tool and technique of organizational development and growth. In essence,
effective appraisal systems provide both evaluation and feedback.The main aim of the
evaluation is to identify performance gaps -- when performance does not meet the
organizational standards -- whereas feedback is necessary to inform employee about those
performance gaps.
From the employee's perspective, performance appraisal informs them about what is
required of them in order to do their jobs, it tells them how well they have achieved those
objectives and helps them take corrective action to improve their performance, and, finally, it
may reward them for meeting the required standards.
The firm, on the other hand, needs a performance appraisal system in order to
establish principles of managerial accountability. Clearly, where employees are given
responsibilities and duties, they need to be held accountable. One of the functions of
performance appraisals is to ensure that people are accountable for their organizational
responsibilities.
Perhaps the most significant benefit of performance appraisals is the opportunities
they provide supervisors and subordinates to have one-on-one discussions of important work
issues. During appraisals, subordinates and supervisors can focus on work activities and
goals, identify and correct existing problems, and encourage better future performance.
Performance Appraisal and Motivation
Motivational research has recognized the power of recognition as an incentive (see
Maslow and the Expectancy Theory of Motivation). Performance appraisals provide
employees with recognition for their work efforts. The appraisal system provides the
supervisor with an opportunity to indicate to employees that the organization is interested in
their performance and development. This recognition can have a positive motivational
influence. on the individual's sense of worth, commitment and belonging.
Performance Appraisal and Training and Development
7

Performance appraisals identify performance gaps. As such, they provide an excellent

opportunity for a supervisor and subordinate to recognize and agree upon individual training
and development needs. Performance appraisal discussion may identify the presence or
absence of work skills. Further, the need for training can be made more relevant if attaining
the requisite job skills is clearly linked to performance outcomes. Consolidated appraisal data
can also help form a picture of the overall organizational training requirements.
Performance Appraisal and Recruitment
Recruitment and selection procedures need to be evaluated. Appraisal data can be
used to monitor the success of a firm's recruitment and selection practices. From this data, the
firm can determine how well employees who were hired in the past are performing.
Performance Appraisal and Employee Evaluation
Employee evaluation is a major objective of performance appraisal. Given the major
functions of management -- planning, organizing, leading and controlling -- it is clear that
evaluations (controlling) need to be done.
At its most basic level, performance appraisal is the process of examining and
evaluating the performance of employees. However, the need to evaluate is also a source of
tension as evaluative and developmental priorities appear to clash. Some management
experts have argued that appraisal cannot serve the needs of evaluation and development at
the same time.
Performance Appraisal and Total Quality Management (TQM)
With the advent of TQM (Total Quality Management) and the extensive use of teams,
traditional performance appraisal systems have come under some criticism. For example,
rather than motivating employees, conflict may be created when appraisals are tied to merit
pay and when that merit pay is based on a forced ranking.
W. Edwards Deming, the founder of total quality management (TQM) has long been
associated with the view that performance appraisals ought to be eliminated. Many TQM
proponents claim that performance appraisals are harmful.

PERFORMANCE APPRAISAL IS A NINE-STEP PROCESS

At the First stage, performance standards are established based on job description
and job specification. The standard should be clear, objective and incorporate all
the factors.
The Second stage, is to inform these standards to all the employees including
appraisers.
The Third stage is following the instruction given for appraisal measurement of
employee performance by the appraisers through observations interview, records
and reports
The Fourth stage is finding out the influence of various internal and external
factors on actual performance.
The Fifth stage is comparing performance with that of other employee and
previous performance .
The Sixth stage is comparing the actual performance with the standards and
finding out deviations.
The Seventh stage is communicating, the actual performance of the employee
and other employees doing the same job and discuss with him the reasons for
positive or negative deviations from the preset standards as the case may be.
The Eighth stage is suggesting necessary changes in standards, job analysis
internal and external environment.
The Ninth stage is fallow up performance appraisal report. This stage includes
guiding, counseling coaching and directing the employee or making arrangements
for the training and development of the employee.
PROBLEMS OF PERFORMANCE APPRAISAL
The major problem in performance appraisal :1)

Rating Biases:The problem subjective measure (is that rating which is not verifiable

by others) has the opportunity for biases include:a) Halo effect

b) The error of central tendency
c) The leniency and strictness biases
d) Personal prejudice
e) The Recency effect
Halo Effect:It is the tendency of the raters to defend excessively on the rating of one trait
or behavioral consideration in rating all other traits or behavioral consideration.
One way of minimizing the halo effect is appraising the entire employee by one
trait before going to rate basis of another trait.
9

 The Error Central Tendency:Some raters fallow play safe policy in-rating-by-rating all the employee on
the middle point of the rating scale and they avoid rating the p[people at both the
extremes of the scale. They fallow play safe policy because of a answerability to
management or lack of knowledge about the job and person he is rating or least
interest in his job.
The leniency and Strictness:The leniency bias crops when some raters have an tendency to be liberal in
their rating by assigning higher rates consistently such rating do not several any
purpose equally damaging one is assigning consistently low rates.
Personal prejudice:If the rater dislike any employee or any group, he may rate them at the lower
them which may distort the rating purpose affect the career of these employee.
The Regency Effect:The raters generally remember the recent actions of the employee at the time
of rating and rate on the basis of this recent action.
1) Favorable or unfavorable rather than on the whole activities.
2) Failure of the superior in conducting performance appraisal and
performance appraisal interview.
3) Most part of the appraisal is based on subjectivity.
4) Less reliability and validity of the performance appraisal technique.
5) Negative ratings affect interpersonal relations system.

10

post

PERFORMANCE APPRAISAL - PROCESS MAP

11

PERFORMANCE APPRAISAL METHODS

1. Graphic rating scale
2. Paired Comparison
3. Forced choice approach
4. Easy Appraisal
5.3600 appraisals
Graphic Rating Scale:
A performance appraisal that rates the degree to which the employee has achieved various
characteristics.
1) The graphic rating scale is the most common type of appraisal used.
12

2) Various characteristics such as job knowledge or punctuality are rated by the degree
of achievement.
3) The rate usually receives a score of 1 to 5, with 5 representing excellent performance.
4) Some forms allow for additional comments.
Paired-comparison Approach:
A performance appraisal that measures the relative performance of employees in a
group.
1) This is a method of performance evaluation that results in a rank ordering of
employees to come up with a best employee.
2) This type of approach measures the relative performance of employees in a group.
Forced-choice Approach:
A performance appraisal that presents the appraiser with sets of statements describing
employee behavior; the appraiser must choose which statement is most characteristic of the
employee and which is least characteristic.
Easy Appraisal:
Sometimes the supervisor must write a description of the employees performance. The
easy appraisal is often used along with other types of appraisals, notably graphic rating
scales. They provide an opportunity for supervisors to describe aspects of performance not
thoroughly covered by an appraisal questionnaire.
360-degree Performance Appraisal: Evaluating Employees From All Angles
Traditional performance appraisals, as discussed above, can be both subjective and
simplistic. At times, they can also be deemed to be "political". In an attempt to improve this
methodology, some companies have turned to 360-degree appraisals. 360 appraisals pool
feedback from a department's internal and external customers to ensure a broader, more
accurate perspective of an employee's performance.
360-degree performance appraisal is an attempt to answer the question: "How can a
supervisor evaluate an employee he or she sees only a few hours each week?"
Benefits of Performance appraisal
For the organization:
The organization comes to know the true position of the employees working capacities
and the problems they face while working in the organization. This performance appraisal
13

system also acts as a motivating factor for the employees, which helps the organization to get
better results.
For the appraise:
The appraise fells themselves an important part of the organization, they get a chance to
express their views in front of their superiors; they get a platform to express their ideas. The
employee comes to know the truth about:
To what extent they have achieved their objectives.
In what respect their work has been most successful.
Are there any aspects of their work, which they have not completed?
Are many other question, which make them assess rightly. ..
Guidelines for effective performance evaluation interviews...

emphasize positive aspects of employee performance

tell employee that the purpose is to improve performance, not to discipline

conduct the review in private

review the performance formally at least annually (more frequently for those performing

poorly)

make criticisms specific

focus on performance, not personality

stay calm; do not argue

identify specific actions the employee can take to improve performance

emphasize the evaluators willingness to assist the employees efforts to improve

performance

end by stressing positive

Appraisal Process
In order to obtain a better understanding of how the performance appraisal has been
put together by The Corporation, the researcher has provided an overview of the companys
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
14

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 WHATOF APPRAISAL It is considered with
Creating and maintaining a satisfactory level of performance of employees in their
present job.
Highlighting employees 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 employees 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
15

advantages and disadvantages, the nature and philosophy of management and the needs of an
organization; the method of appraisal is decided.

16

ABOUT THE COMPANY

The Rane brake linings ltd., plant-III launched Pondicherry. This plant was made on
1964. In beginning time 250 employees were working that there plant. The plant-3 was
occupied on 29237 yards. The factory building was situated on 90000 squire bits. In the
beginning stages of manufactures, only four types of products are induced.
Established in 1964
Technical collaboration with Nisshinbo Brakes Inc, Japan
Application in every segment of automobile industry
Group turnover of 494 million USD for the year 2013 - 14
It is producing a Auto Mobile products such a particular position of all over the
country. Types of products a disc pad, clutch facing and railway products. The RBL want to
produce the products everything would be satisfied by the customers requirement. Products
are constantly updated in turn with evolving customer demands. Green material policy
evolved to ensure products meet stringent Eco-norms.
All the products designed and manufacture the Computer Aided Design (CAD) and
sophisticated technical equipments like full-scale inertia dynamometer, thermo gravimetric
analyses and paralysis gas.
The General Manager of RBLs plant - III Pondicherry, R.J.R.FERNADO.
(Operation)
Disc pads:
Asbestos
Asbestos free
Railway brake blocks:
17

K block
Asbestos
Asbestos free
L block

Asbestos free

Clutch facings:
Asbestos moulded
Asbestos free moulded
Asbestos free cord wound
RANE GROUP:
The Rane group of companies founded and incorporated on 1929 in Washington USA,
is a privately held the company. Establishment of INDIA in the year 1929 the company
technical association was made with the collaborator M/S NISSHINBO industries in JAPAN
of the manufacture of its products.
The company name was selected from an anagram created from of the common letters
of the first and last name of the original founders. This particular anagram was selected
because it was short, easy-to-say and remembers, and they liked the double- entendre
possibilities implying wet-links northwest.
The essential ingredients in Ranes successful philosophy are knowledge, integrity, pride
and commonsense. At Rane, people learn to treat people the way they would want to be
treated, to design & built the products the way they would want their designed &built and
that when something goes wrong, you react quickly and decisively to correct it. It is an old
fashioned, based on the mutual trust and respect.
BRANCHES OF THE RANE GROUPS:
Rane Corporate Center, Chennai.
Rane Regional Office, Chennai, Mumbai.
Rane Regional Office, Delhi.

18

Rane Brake Linings Ltd., (HO) Channai.

Plants Chennai, Hyderabad, Pondicherry, Trichy
Rane (Madras) Ltd.,(HO) Chennai.
(Chennai, Mysure, Pondicherry)
Rane Engine Values Ltd., (HO) Chennai.
(Chennai, Andhra, ponneri, Hyderabad)
Rane TRW Steering Systems Ltd.,(HO) Chennai.
Viralimalai, Guduvancherry, Singaperumal koil,
Kar mobiles ltd., (HO) Banglore.
MISSION AND VALUES:
provide superior products and services to our customer and maintain market
leadership.
Evolve as an institution that serves the best interests of all stakeholders.
Pursue excellence through total quality management.
Ensure the highest standards of ethics and integrity in all our action.
VISION STATEMENT:
To remain market leader INDIA and global player in fraction material composites
through environment friendly technologies and people competence.
OBJECTIVES OF RBL:
Establish orderliness in all work place.
Establish visual controls at work place.
Create safe working conditions.
Reduce retained times and there by eliminate delays.
RBLS QUALITY POLITY:

19

 That customer satisfaction is an imperative and this is achieved by supplying

quality products in time at competitive prices.
That quality should be designed engineered and built into the product through
appropriate technology.
In ensuring adequate in-house testing facilities, to create confidence and trust in
customers, on the performance of its products.
In total employee involvement and commitment, by imparting adequate
knowledge and skills to all levels of employees, are the prime objectives of the
company.
In doing things right first time and every time.

AWARDS & RECOGNITIONS:

Award ISO 9001:2000 quality management system, by RWTUV. Germany.

Award ISO 14001 environment management system, by RWTUV, Germany.

DEMING award in the year of 2003-by juse- Japanese unions for scientists and
engineers.

20

ORGANISATION CHART

PRESIDENT

APEX COMMITTEE
(CHARMAN, PLANT HED)
CHENNAI, HYDRABAD, PONDICHERRY.

PLANT STEERING COMMITTEE

Corporate head, +plant. Head+
Dept. head,

Zone-1
HR &Add
Sub
Zone-4

Zone-2
Disc Pad

Zone-3
Clutch

Zone-4
CBB

Zone-5
Store

Zone-6
OAD

Zone-7
PED

Sub
Zone-5

Sub
Zone-3

Sub
Zone-4

Sub
Zone-3

Sub
Zone-2

Sub
Zone-3

21

NEED FOR THE STUDY

The study is carried out to find the reasons for conflicts between employers and
workers.

It helps the management to performance improve to make workers participate

more effectively towards the work.

The study helps to find the satisfaction level of performance provided.

This study gives a good support for improving the performance of employees.

This study provides me a practical exposure to upgrade my knowledge.

22

SCOPE OF THE STUDY

To identify the stress level of the job of employee.

This study is helpful to that organization for conducting further research
It is helpful to identify the employers level of satisfaction of the job.
This study is helpful to the organization for identifying the area of
dissatisfaction of job of the employees.
This study helps to make a managerial decision to the company.

23

OBJECTIVES OF THE STUDY

Primary Objective:
To understand the New Performance Appraisal System practiced in Rane Break
Lining Ltd, Puducherry.

Secondary Objective:
To know the employees awareness & level of satisfaction about the Performance
Appraisal practiced in the organization
To identify the factors inducing to increase the performance of an employee
To know the factors necessary for appraising the employees.
To provide suggestions to the management in improving Performance Appraisal
System.

24

CHAPTER - II
REVIEW OF LITERATURE

Performance Appraisal System Attributes: Clarity, Openness, and Fairness

The performance appraisal system must possess the attributes of clarity, openness, and
fairness. These attributes are related to the historic values of the student affairs profession.
While specific implementation of these attributes may vary, the following should be
represented in effective performance appraisal:

Ongoing Review of Position and Performance - Effective performance appraisal systems

conduct ongoing evaluations of both the position and the staff member occupying it. With
ongoing position analysis and performance appraisal, there are few surprises, and changes in
the environment are quickly incorporated into the official appraisal system.

Job Descriptions - Job descriptions should be reliable, valid, understandable, and specific
enough to provide direction for staff behavior. Job descriptions should focus on what the staff
member does (e.g. advises the student government association) and what outcomes are
expected. These outcomes should be clearly linked to departmental and institutional
objectives and needs.
Job descriptions should use action words such "plans" or "supervises" rather than
"demonstrates initiative" or "is likable." Job descriptions should provide guidelines for staff
so they know the specific behaviors expected to perform. The responsibilities of the staff

25

member should be listed in order of importance and weighted relative to importance, if

possible.

Participatory and Interactive Appraisal - Appraisal system processes should be designed

in concert with all stakeholders and open to constant interaction with them. Plans made
jointly by staff and administrators have a better chance of working than plans made
independently by either party.

Workable formats that Avoid Systemic Bias - Effective performance appraisal systems
must include workable formats that avoid systematic biases. Checklists of performance
criteria completed at the same time every year should be avoided. This type of approach
simply fails to produce any useful information for individual or organizational improvement.
Other biases include giving preferential treatment to some but not all staff, rating all
staff the same, being overly lenient or overly harsh toward some or all staff, and practicing
conscious or unconscious racial or gender prejudice.
Adopting a format that includes the standards of clarity, openness, and fairness and
that involves more than one appraiser may help to control some of these biases.

Susan M. Heath field of The Traditional Performance Appraisal Process

Says, Managers cite performance appraisal as the task they dislike the most. This
is understandable given that the process of performance appraisal, as traditionally practiced,
is fundamentally flawed. It is incongruent with the values-based, vision-driven, missionoriented, participative work environments favored by forward thinking organizations today. It
smacks of an old fashioned, paternalistic, top down, autocratic mode of management which
treats employees as possessions of the company.
26

Baals of Performance Management & Appraisal and Work-Related Articles

Says, Performance management and performance appraisal (or employee reviews,
annual reviews, etc) are some of the most misused tools anywhere. A fortune is wasted on
inept processes, poor forms, and result from mistaken ideas about what performance
management is for, and why we do it.
Gerard McLaughlin of How to Prepare for a Performance Appraisal
Says, Performance appraisal should be treated as an ongoing developmental
process rather than a formal once-a-year review. Both employee and reviewer to ensure that
targets are being achieved should closely monitor it. By preparing yourself diligently and
demonstrating a willingness to co-operate with your reviewer to develop your role, you will
create a positive impression. To enable you to assess your own performance as objectively as
possible, try to view it from your manager's perspective. Make sure you are conversant with
the company's assessment policies and procedures.
Krein Says (1984) Appraisers should not confront employees directly with criticism.
Rather, they should aim to let the evidence of poor performance emerge "naturally" during
the course of the appraisal interview. This is done by way of open-ended questioning
techniques that encourage the employee to identify their own performance problems.
Dulewicz Says that (1989)"... A basic human tendency to make judgments 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 systems began as simple methods of income justification. That is,

27

appraisal was used to decide whether or not the salary or wage of an individual employee was
justified.
The process was firmly linked to material outcomes. If an employee's performance
was found to be less than ideal, a cut in pay would follow. On the other hand, if their
performance was better than the supervisor expected, a pay rise was in order.
Dickenson (1991) Evaluations of agencies and programs aid in determining levels of
efficiency, effectiveness and appropriateness and facilitate future planning to enhance the ability
to meet client needs. Similarly, appraisals of individuals can also provide such vital information
and opportunities for improvement. Indeed there is an inalienable link between the two.
Dickenson (1991) argues that to ignore individuals in the review process is to ignore a major
input into the achievement of organizational outcomes (p109).
Covey (1991), in discussing the work of Deming, makes the point that as managers we
must be less concerned with supervising and concentrate on being leaders. He finds that,
sustainable cultural change can take place within an organization only when the individuals
within the organization first change themselves from the inside out (p265).
Cherry (1993) highlights the viewpoint of Deming (1982) that appraisal processes can be
counterproductive to organizational success as they are odds with processes which encourage
some degree of risk taking to meet client needs or develop new methodologies through trial. Also
of this view is Mintzberg (1987) who considers:
Dickenson (1993) espouses the common viewpoint of contemporary readings:

The

focus in its current application is to link performance review of individuals to overall corporate
or strategic planning so that the outcomes of individuals performance is related to organizational
outcomes. (p109)

28

Curtain (1993) highlights the key competencies required are those of leadership, stating
that public sector managers at all levels need to be able to display leadership values (p. 38). The
issue of leadership competencies versus a more traditional managerial skill set is argued by
Curtain in terms of good management being related to order and predictability whilst leadership
through inspiration, motivation and establishment of common values of staff is able to produce
change, often to a dramatic degree (p. 38).
Blanchard (1994) discusses the fact that leadership style is the pattern of behaviors you
use with others as perceived by them. The critical part being that it is how others perceive your
behaviors that determine your leadership style and that this perception will be based on how you
communicate. Knowledge of the best theories and best intentions mean little if you do not
practice what you preach or walk the talk. Failure to do so will build an environment of mistrust
and cynicism. Once this has been allowed to occur, even the most positive communications are
met with skepticism and are searched for hidden meanings or traps. (Stoner et al. 1985, p. 606)

29

CHAPTER - III
RESEARCH METHODOLOGY

RESEARCH MEANING
Research is an art of scientific investigation. According to Redmen and Mary defines
research as a systematic effort to gain knowledge.
Research methodology is way to systematically solve the research problem. It is a
plan of action for a research project and explains in detail how data are collected and
analyzed. This research study is a descriptive research study.

RESEARCH DESIGN
A research design is a plan that specifies the objectives of the study, method to be
adopted in the data collection, tools in data analysis and hypothesis to be framed.
A research design is an arrangement of condition for collection and analysis of data
in a manner that aims to combine relevance to research purpose with economy in procedure.

LIMITATIONS OF THE STUDY

The survey is subjected to the bias and prejudices of the respondents hence 100%
accuracy cant be assured.
The researcher was carried out in a short span of time, where in the
could not widen the study.
The study could not be generalized due to the fact that researcher adapted
interview method.
NATURE OF DATA
Primary data

30

researcher
personal

The primary data are collected from the employees of Rane Brake Lining Ltd.,
through a direct structured questionnaire.
Secondary data
Company profiles, Company registers, websites, magazines, articles were used widely
as a support to primary data.

SAMPLING SIZE AND TECHNIQUE

Size of the sample
It refers to the number of items to be selected from the universe to constitute as a
sample. In these study 250 employees of Rane Brake Lining Ltd., was selected as size of
sample 100.
Sample design
The sampling technique used in this study is simple random sampling method. This
method is also called as the method of chance selection. Each and every item of population
has equal chance to be included in the sample.
Questionnaire
The questions are arranged logical sequence. The questionnaire consists of a variety
of questions presented to the employees for the response. Dichotomous questions, multiple
choice questions, rating scale questions were used in constructing questionnaire.

STATISTICAL TOOLS USED

To analyze and interpret collected data the following statistical tools were used.
Percentage method
Chi-square analysis
One-way ANOVA
Percentage method:
31

The percentage is used for making comparison between two or more series of
data. It can be generally calculated as

No. of respondents favorable

Percentage of respondent =

x 100
Total no of respondents

Chi-square analysis:
Chi-square analysis in statistics is to test the goodness of fit to verify the distribution
of observed data with assumed theoretical distribution. Therefore it is a measure to study the
divergence of actual and expected frequencies.

The formula for computing chi-square is as follows.

Chi-square = {(O-E)2/ E}

The calculated value of chi-square is compared with the table of chi-square

for the given degrees of freedom at the specified level of significance. If the calculated value
is greater than the tabulated value then the difference between the observed frequency and the
expected frequency are significant. the degrees of freedom is (n-2) where n is number of
observed frequencies and in case of contingency table the degrees of freedom is (C-1) (R-1)
where C is number of columns and R is number of rows.

One-way ANOVA

32

The One-Way ANOVA procedure produces a one-way analysis of variance for a

quantitative dependent variable by a single factor (independent) variable. Analysis of
variance is used to test the hypothesis that several means are equal. This technique is an
extension of the two-sample test.

CHAPTER IV
DATA ANALYSIS AND INTERPRETATION
TABLE 1

33

AGE OF THE RESPONDENTS

Inference:
Regarding age of the Employees, 66% of the respondents are having 35 45 years of
age, which is the gighest.16% of respondents are having 25 35 years of age and 18% of
Age

No. of respondents

Percentage

Below 25

0%

25 - 35 Years

16

16%

35 - 45 Years

66

66%

Above 45 Years

18

18%

Total
100
100%
respondents are having above 45 years of age. There are no respondents in below 25 years of
age category.

CHART 1
AGE OF THE RESPONDENTS

34

TABLE 2
EDUCATION LEVEL OF THE EMPLOYEES

35

Inference:

Education Level

No. of respondent

Percentage

Up to H.Sc

6%

Diploma

20

20%

Graduate

40

40%

Post Graduate

21

21%

Others

13

13%

Total
100
100%
It is clear from the table that the educational level of the employees is high. It is
found from the response that employees who have completed, 20% of respondents have done
diploma, 40% of respondents have completed graduate, Post graduate 21% of respondents
have finished post graduate and there is no respondents are in others category.

CHART 2
EDUCATION LEVEL OF THE EMPLOYEES
36

TABLE 3
MONTHLY INCOME OF THE RESPONDENTS

37

Inference:

Monthly income

No. of respondents

Percentage

Below 10000

0%

10000 15000

54

54%

15000 20000

20

20%

20000 - 25000

18

18%

Above 25000

8%

Total
100
100%
Regarding salary of the Employees, 54% of the respondents are getting 10000 15000 years
of salary, 20% of respondents are getting 15000 20000, 18% of respondents are 20000 25000 categories, 8% of respondents are getting above 25000 and there are no respondents in
below 10000

CHART 3
MONTHLY INCOME OF THE RESPONDENTS

38

Job Experience

No. of respondents

Percentage

1 - 5 Years

13

13%

5 - 10 Years

74

74%

10 - 15 Years

8%

15 20 years

5%

Above 20 Years

0%

100

100%

Total

TABLE - 4
YEARS OF EXPERIENCE

Inference:
Regarding experience of the Employees, 13% of the respondents are having 15 years
of experience. Among the respondents person who have worked for above 5-10 years
constitute 74% of the total percentage, 8% of respondents are in 10-15 years, 5% of

39

respondents are in 15-20 there are no respondents in above 20 year of job experience
category.

CHART - 4
YEARS OF EXPERIENCE

40

TABLE 5
RESPONDENTS OPINION ABOUT PRESENT PERFORMANCE LEVEL

Particular

Frequency

Percent

Highly Satisfied

29

29%

Satisfied

38

38%

Neutral

25

25%

Dissatisfied

8%

Highly Dissatisfied

0%

100

100%

Total

Inference:
The table inferred that 26% of respondents are highly satisfied with present
performance level in the work, 29% of respondents fall under satisfied category, 27% of
respondents fall under neutral, 14% of respondents fall under dissatisfied category and 4% of
respondents are highly dissatisfied.

41

CHART 5

RESPONDENTS OPINION ABOUT PRESENT PERFORMANCE LEVEL

42

TABLE 6
RESPONDENTS OPINION ABOUT PERFORMANCE APPRAISAL SYSTEM
FOLLOWED PERIODICALLY

Particular

Frequency

Percent

Strongly agree

5%

Agree

24

24%

Neutral

26

26%

Disagree

20

20%

Strongly disagree

25

25%

100

100%

Total

Inference:
The table inferred that 5% of respondents strongly agree that performance appraisal
system followed periodically, 24% of respondents fall under agree category, 26% of
respondents fall under neutral. 20% of respondents fall under disagree category and 25% of
respondents are in strongly disagree.

43

CHART 6

RESPONDENTS OPINION ABOUT PERFORMANCE APPRAISAL SYSTEM

FOLLOWED PERIODICALLY

44

TABLE 7
RESPONDENTS OPINION ABOUT PERFORMANCE APPRAISAL DECIDING
PROMOTION

Particular

Frequency

Percent

Strongly agree

11

11%

Agree

34

34%

Neutral

34

34%

Disagree

17

17%

Strongly disagree

4%

100

100%

Total

Inference:
The table inferred that 11% of respondents strongly agree that performance appraisal
deciding promotion, 34% of respondents fall under agree category. 34% of respondents fall
under neutral, 17% of respondents fall under disagree category and 4% of respondents are in
strongly disagree.
45

CHART 7

RESPONDENTS OPINION ABOUT PERFORMANCE APPRAISAL DECIDING

PROMOTION

46

TABLE 8
RESPONDENTS OPINION ABOUT SENIORITY CONSIDERED FOR PROMOTION

Particular

Frequency

Percent

Strongly agree

21

21%

Agree

36

36%

Neutral

27

27%

Disagree

9%

Strongly disagree

7%

100

100%

Total

Inference:
The table inferred that 21% of respondents strongly agree that seniority considered the
promotion, 36% of respondents fall under agree category. 27% of respondents fall under
neutral, 9% of respondents fall under disagree category and 7% of respondents are in strongly
disagree.

47

CHART 8
RESPONDENTS OPINION ABOUT SENIORITY CONSIDERED FOR PROMOTION

48

TABLE 9
RESPONDENTS OPINION ABOUT RESULT OF PERFORMANCE APPRAISAL
SYSTEM

Particular

Frequency
18

Percent
18%

Agree

29

29%

Neutral

32

32%

Disagree

16

16%

Strongly disagree

5%

100

100%

Strongly agree

Total

Inference:
The table inferred that 18% of respondents strongly agree that performance appraisal
system result has benefits, 29% of respondents fall under agree category. 32% of respondents
fall under neutral, 16% of respondents fall under disagree category and 5% of respondents are
in strongly disagree.

49

CHART 9
RESPONDENTS OPINION ABOUT RESULT OF PERFORMANCE APPRAISAL
SYSTEM

50

TABLE 10
RESPONDENTS OPINION ABOUT SELF IMPROVEMENT

Particular

Frequency

Percent

Strongly agree

11

11%

Agree

26

26%

Neutral

27

27%

Disagree

19

19%

Strongly disagree

17

17%

100

100%

Total

Inference:
The table inferred that 11% of respondents strongly agree that they can improve them
self after performance appraisal system, 26% of respondents fall under agree category. 27%
of respondents fall under neutral, 19% of respondents fall under disagree category and 17%
of respondents are in strongly disagree.

51

CHART 10
RESPONDENTS OPINION ABOUT SELF IMPROVEMENT

52

TABLE 11
RESPONDENTS OPINION ABOUT PERFORMANCE APPARAISAL GIVES JOB
SATISFACTION

Particular

Frequency

Percent

Very High Level

9%

High Level

24

24%

Moderate

31

31%

Low Level

21

21%

Very Low Level

15

15%

100

100%

Total

Inference:
The table inferred that 9% of respondents said that performance appraisal system
gives very high level job satisfaction, 24% of respondents fall under high level category. 31%
of respondents fall under moderate, 21% of respondents fall under low level category and
15% of respondents are in very low level.

53

CHART 11
RESPONDENTS OPINION ABOUT PERFORMANCE APPARAISAL GIVES JOB
SATISFACTION

54

TABLE 12
RESPONDENTS OPINION ABOUT DISCIPLINE AND ATTENDANCE

Particular

Frequency

Percent

Strongly agree

41

41%

Agree

21

21%

Neutral

19

19%

Disagree

14

14%

Strongly disagree

5%

100

100%

Total

Inference:
The table inferred that 41% of respondents strongly agree that discipline and
attendance is the necessary factor for performance appraisal system, 21% of respondents fall
under agree category. 19% of respondents fall under neutral, 14% of respondents fall under
disagree category and 5% respondents in strongly disagree.

CHART 12
55

RESPONDENTS OPINION ABOUT DISCIPLINE AND ATTENDANCE

TABLE 13
56

RESPONDENTS OPINION ABOUT JOB KNOWLEDGE

Particular

Frequency

Percent

Strongly agree

37

37%

Agree

31

31%

Neutral

26

26%

Disagree

6%

Strongly disagree

0%

100

100%

Total

Inference:
The table inferred that 37% of respondents strongly agree that knowledge of the job is
necessary for performance appraisal system, 31% of respondents fall under agree category.
26% of respondents fall under neutral, 6% of respondents fall under disagree category and
there is no respondents in strongly disagree.

CHART 13
RESPONDENTS OPINION ABOUT JOB KNOWLEDGE
57

TABLE 14

58

RESPONDENTS OPINION ABOUT PERFORMANCE APPRAISAL SYSTEM

INCREASES SELF DEVELOPMENT

Particular

Frequency

Percent

Very High

27

27%

High

23

23%

Moderate

39

39%

Low

11

11%

Very Low

0%

100

100%

Total

Inference:
The table inferred that 27% of respondents said performance appraisal system
increases self development very high, 23% of respondents fall under high category. 39% of
respondents fall under moderate, 11% of respondents fall under low category and there is no
respondent in very low.

CHART 14

59

RESPONDENTS OPINION ABOUT PERFORMANCE APPRAISAL SYSTEM

INCREASES SELF DEVELOPMENT

TABLE - 15
60

RESPONDENTS OPINION ABOUT IMPROVES PERFORMANCE

Particular

Frequency

Percent

By Advice

39

39%

By Training

24

24%

By Punishment

0%

By Motivation

37

37%

others

0%

100

100%

Total

Inference:
The table inferred that 39% of respondents expect advice from the organisation to
improve performance, 24% of respondents fall under training category, there is no respondent
in punishment category, 37% of respondents fall under motivation category.

CHART - 15
RESPONDENTS OPINION ABOUT IMPROVES PERFORMANCE
61

TABLE - 16
RESPONDENTS OPINION ABOUT LAST PERFORMANCE APPRAISAL

62

Particular

Frequency

Percent

Highly Satisfied

21

21%

Satisfied

24

24%

Neutral

26

26%

Dissatisfied

19

19%

Highly Dissatisfied

10

10%

100

100%

Total

Inference:
The table inferred that 21% of respondents are satisfied with last performance
appraisal system, 24% of respondents fall under satisfied category, 26% of respondents are in
neutral, 19% of respondents fall under dissatisfied category and 10% of respondents are
highly dissatisfied.

CHART - 16
RESPONDENTS OPINION ABOUT LAST PERFORMANCE APPRAISAL

63

TABLE - 17
RESPONDENTS OPINION ABOUT OVERALL PERFORMANCE APPRAISAL
SYSTEM
64

Particular

Frequency

Percent

Highly Satisfied

34

34%

Satisfied

29

29%

Neutral

27

27%

Dissatisfied

9%

Highly Dissatisfied

1%

100

100%

Total

Inference:
The table inferred that 34% of respondents are satisfied with overall performance
appraisal system, 29% of respondents fall under satisfied category, 27% of respondents are in
neutral, 9% of respondents fall under dissatisfied category and 1% of respondents are highly
dissatisfied.

CHART 17
RESPONDENTS OPINION ABOUT OVERALL PERFORMANCE APPRAISAL
SYSTEM

65

TABLE 18
RESPONDENTS OPINION ABOUT RELATIONSHIP WITH APPRAISER

66

Particular

Frequency

Percent

Strongly agree

42

42%

Agree

28

28%

Neutral

25

25%

Disagree

5%

Strongly disagree

0%

100

100%

Total

Inference:
The table inferred that 42% of respondents strongly agree that for performance
appraisal system gives mutual awareness, understanding and relationship with appraiser, 28%
of respondents fall under agree category. 26% of respondents fall under neutral, 4% of
respondents fall under disagree category and there is no respondents are in strongly disagree.

CHART 18
RESPONDENTS OPINION ABOUT RELATIONSHIP WITH APPRAISER

67

TABLE 19
RESPONDENTS OPINION ABOUT PERFORMACNE APPRAISAL GIVES
ADDITIONAL RESPONSILITIS
68

Particular

Frequency

Percent

Strongly agree

29

29%

Agree

34

34%

Neutral

32

32%

Disagree

2%

Strongly disagree

3%

100

100%

Total

Inference:
The table inferred that 29% of respondents strongly agree that perfamance appraisal
system gives additional responsibility, 34% of respondents fall under agree category. 32% of
respondents fall under neutral, 2% of respondents fall under disagree category and 3% of
respondents are in strongly disagree.

CHART 19
RESPONDENTS OPINION ABOUT PERFORMACNE APPRAISAL GIVES
ADDITIONAL RESPONSILITIS

69

TABLE 20
RESPONDENTS OPINION ABOUT PERSONAL AND HIDDEN STRENGTH

70

Particular

Frequency

Percent

Strongly agree

18

18%

Agree

26

26%

Neutral

21

21%

Disagree

19

19%

Strongly disagree

16

16%

100

100%

Total

Inference:
The table inferred that 18% of respondents strongly agree that performance appraisal
system identifies the personal and hidden strengths, 26% of respondents fall under agree
category. 21% of respondents fall under neutral, 19% of respondents fall under disagree
category and 16% of respondents are in strongly disagree.

CHART - 20
RESPONDENTS OPINION ABOUT PERSONAL AND HIDDEN STRENGTH

71

TABLE 21
RESPONDENTS OPINION MANAGERS SERIOUSNESS

72

Particular

Frequency

Percent

Strongly agree

33

33%

Agree

35

35%

Neutral

24

24%

Disagree

8%

Strongly disagree

0%

100

100%

Total

Inference:
The table inferred that 33% of respondents strongly agree that manager takes
performance appraisal system seriously, 35% of respondents fall under agree category. 24%
of respondents fall under neutral, 8% of respondents fall under disagree category and there is
no respondent in strongly disagree.

CHART 21
RESPONDENTS OPINION MANAGERS SERIOUSNESS

73

TABLE 22

74

CHI-SQUARE TEST I: TO FIND ASSOCIATION BETWEEN AGE AND PRESENT

PERFORMANCE LEVEL
Null Hypothesis: There is no association between age and present performance level
Alternative Hypothesis: There is an association between age and present performance level
Age * present performance level
present performance level
Highly
satisfied
satisfied

Age

neutral

dissatisfied

Total
Highly
dissatisfied

Below 25

25 - 35

16

35 - 45

22

21

17

66

Above 45

18

29

38

25

100

Total

Chi-Square Tests

Pearson Chi-Square

Value

df

Asymp. Sig.
(2-sided)

7.654a

.544

Inference:
The above calculated value at 5% level of significance says that null Hypothesis. The
calculated value is greater than 0.05. Hence there is no association between age and present
performance level

TABLE 23

75

TEST II: TO FIND ASSOCIATION BETWEEN EXPERIENCE AND PRESENT

PERFORMANCE LEVEL SENIORITY CONSIDERED FOR PROMOTION

Null Hypothesis: There is no association between experience and seniority considered for
promotion
Alternative Hypothesis: There is an association between experience and present pay
seniority considered for promotion
Experience * seniority considered for promotion
seniority considered for promotion

Experience

Strongly
agree

Agree

neutral

Disagree

Strongly
disagree

Total

1 5 yrs

13

5 10 yrs

17

25

20

74

10 15 yrs

15 20 yrs

Above 20

21

36

27

100

Total

Chi-Square Tests

Pearson Chi-Square

Value

df

Asymp. Sig.
(2-sided)

9.141a

.152

Inference:
The above calculated value at 5% level of significance says that null Hypothesis. The
calculated value is greater than 0.05. Hence there is no association between experience and
seniority considered for promotion

76

TABLE 24
ONE WAY ANOVA

Educational
Qualification
Hr.sec.
Diploma
U.G
P.G
Others

Mean

Std. Deviation

14
39
29
11
7

1.2857
2.0000
1.7931
2.4545
1.8571

.82542
.97333
.90156
1.03573
1.06904

Total

100

1.8800

.97732

Sum of
Squares
9.360
85.200
94.560

Df

Mean
Square

Sig.

2.340

2.609

.040

95

.897

99

RESULT:
There is no association between employees performance Educational Qualification
vs performance appraisal is carried out in your organization.

INTERPRETATION:
The results of ANOVA f value is .828 and the significant value is.481. It is more
than>0.005 so null hypothesis is rejected. Alternate hypothesis is accepted.

77

TABLE 25
ONE WAY ANOVA

Experience

Mean

Std. Deviation

1 5 yrs
5 10 yrs
10 15 yrs
15 20 yrs
Above 20

13
74
8
5
0

2.4667
2.8065
2.7333
2.3333
0

2.4667
2.8065
2.7333
2.3333
0

Total

100

2.6000

2.6000

Sum of
Squares
3.028
116.972
120.000

Mean
Square

Df
3

1.009

96

1.218

Sig.

.828

.481

99

RESULT:
There is no association between employees performances Experience vs Performance
appraisals play a major role in delegation, additional responsibilities, employee growth and
development.

INTERPRETATION:
The results of ANOVA f value is .828 and the significant value is.481. It is more
than>0.005 so null hypothesis is rejected. Alternate hypothesis is accepted.

78

CHAPTER V
FINDINGS

Confidential performance appraisal system is being followed by the company.

Performance appraisal is followed once in an year.
Most of the respondents (66%) come under the age group of 35-45 years.
Most of the respondents (46%) have completed graduation.
More numbers of respondents (74%) have 5-10 years of experience.
Most of the respondents are satisfied with present performance level.
It is found from the research that performance appraisal is one of the important factor

which determines promotion.

Performance appraisal system helps to personal development of an employee.

More number of respondents feel performance appraisal system gives job satisfaction.

It is found from the research that discipline and attendance, job knowledge,
relationship with supervisor, hard work and communication skills are most necessary factors
for performance appraisal.

Most of the respondents expect advice (39%) and motivation (39%) from the
company to improve performance level.

Most of the respondents (34%) are highly satisfied with present performance appraisal
system followed by company.

It is found from the research that most of the respondents (34%) agreed that
performance appraisal gives additional responsibility of job.

CHAPTER VI
RECOMMENDATIONS
The existing appraisal system can be incorporated with additional methods like 360
degree appraisal system. Company. By adopting this kind of system, it will be easy to
measure the performance of the executives precisely and accurately.

79

 Executives feedback about the promotion can be extracted. By extracting the

feedback from the executives the company can find out the steps that must take to
avoid errors in the appraisal process. So the performance appraisal can be more
accurate.

The motivational aspect of promotion can be further recognized. In order to induce

the executives to perform better. The company can introduce training programs which
will enable them to achieve the goals of the company.
The company should motivate and advice to the employee for the better performance.

It is suggested from the research that the company should arrange training programme
for the growth of the employees.
Employees should be rewarded and awarded for their better performance.

CHAPTER VII
CONCLUSION

The company has an effective performance appraisal. It helps the executives to get
promotion and other incentives. The company is also providing training program to the
executives in order to induce and motivate them. This training program helps them to
perform better.
80

Performance appraisal is essential to understand and improve the employees

performance through HRD. In fact, performance appraisal is the basis for HRD. It was
viewed that performance appraisal was useful to decide upon employee promotion/transfer,
salary determination and the like. But the recent developments in human resources
management indicate that performance appraisal is the basis for employee development.
Performance appraisal indicates the level of desired performance level, level of actual
performance and the gap between these two. This gap should be bridged through human
resources development techniques like training, executive development etc.

This study helps to understand the performance appraisal system practiced in the
Rane Brake Lining Ltd. Majority of the employees are satisfied with the performance
appraisal system followed by company.

Performance Appraisal System helps is employees career growth it support them to

take their consideration to the management and to get more benefits and also for their more
effective performance.

CHAPTER VII
BIBLIOGRAPHY

GARY DESSLER (2003), Human Resource Management, 10th Edition, Pearson

education, New Delhi, Page Number: 283

81

 BHASKARCHATTARGEE (1996), Human Resource Management Contemporary

Text, Sterling publishers, New Delhi, Page Number:135
BISWAJEET PATTANAYAK (2001), Human Resource Management, Prentice-Hall
Of India Pvt Ltd, New Delhi, Page Number:150
K.ASWATHAPPA (2002), Human Resource Management, Tata McGraw-Hill
Publishing Company Ltd, Page Number:193
Martin, D. C. & Bartol, K. M. (1998). Performance appraisal: Maintaining system
effectiveness. Public Personnel Management,27(2), 223-230.
Gomez-Mejia, L. R., Balkin, D. B., and Cardy, R. L. (1998). Managing human
resources (2nd ed.). Prentice-Hall, New Jersey.
Cardy, R. & Dobbins, G. (1994). Performance appraisal:Alternative perspectives.
Cincinnati, OH: South-Western.

CHAPTER IX
APPENDIX
A STUDY ON EMPLOEE PERFORMANCE APPRAISAL RANE
BRAKE LINING LIMITED, PUDUCHERRY - 605 107.

1. Name

2. Age

Below 25
82

2 5 - 35

35 - 45

45 - 50

Above60
3.

Gender

Male

Female

4.

Marital Status

Single

Married

Hr. Sec.

Diploma

UG

PG

5. Educational
Qualification

Others
6. Experience

1 - 5 Yrs

6 - 10 Yrs

11 - 15 Yrs

16 - 20 Yrs

Above 20 Yrs
7. Salary

Below 10000

10001 - 15000

15001 - 20000

20001 - 25000

25000 Above
8. Describe your present performance level in your company?
Highly satisfied

Satisfied

Dissatisfied

Highly dissatisfied

Neutral

9. How frequently the performance appraisal is carried out in your organization?

Quarterly

Half-yearly

More than a year

Others

Annually

10. Performances appraisal system should be followed periodically in an organization

Strongly agree

Agree

Disagree

Strongly Disagree
83

Neutral

11. Is the feedback on performance appraisal alone be the factor is deciding your
promotion
Strongly agree

Agree

Disagree

Strongly Disagree

Neutral

12. Is your seniority also have been considered for yours promotion
Strongly agree

Agree

Disagree

Strongly Disagree

Neutral

13. Is that your performance appraisal result has some benefits

Strongly agree

Agree

Disagree

Strongly Disagree

Neutral

14. Could you able to improve yourself with the help of performance appraisal system
Strongly agree

Agree

Disagree

Strongly Disagree

Neutral

15. Does the performance appraisal gives additional job satisfaction to you?
At very high level

High level

Low level

Others

Moderate

16. Do you think the discipline and attendance necessary for appraising the employees?
Strongly agree

Agree

Disagree

Strongly Disagree

Neutral

17. Do you think the job knowledge and target completion necessary for appraising the
employees?
Strongly agree

Agree

Disagree

Strongly Disagree

Neutral

18. Does the performance appraisal system facilitate to increase yourself development?
Strongly agree

Agree

Disagree

Strongly Disagree
84

Neutral

19. At low performance level, what do you expect from organization to improve the
performance level of the employee?
By advice

By training

By motivation

Others

By punishment

20. Are you satisfied with last performance appraisal?

Highly satisfied

Satisfied

Dissatisfied

Highly dissatisfied

Neutral

21. Specify your satisfaction level regarding the performance appraisal system carried out
in your organization?
Highly satisfied

Satisfied

Dissatisfied

Highly dissatisfied

Neutral

22. Performance appraisal gives mutual awareness, understanding and relationship

between the appraise and appraiser
Strongly agree
Disagree

Agree
Strongly Disagree

Neutral

23 .Performance appraisals play a major role in delegation, additional responsibilities,

employee growth and development
Strongly agree

Agree

Disagree

Strongly Disagree

Neutral

24. Performance appraisal classifies and defines the objectives and priorities of the
company
Strongly agree

Agree

Disagree

Strongly Disagree

Neutral

25. Performance appraisal identifies the personal strengths and direction including
unused hidden strengths
Strongly agree

Agree
85

Neutral

Disagree

Strongly Disagree

26. Periodic orientation programmers are conducted to explain the objectives

Strongly agree

Agree

Disagree

Strongly Disagree

Neutral

27. Managers take performance appraisal seriously

Strongly agree

Agree

Disagree

Strongly Disagree

86

Neutral