Topic: EFFECT OF PERFORMANCE APPRAISAL ON

EMPLOYEE PERFORMANCE

INTRODUCTION
The performance of employees is of great concern in every organization. Organization’s
endeavor to maximize the performance of their employees. As such, there is needed to
come up with a method of evaluating employee’s performance. Performance appraisal is a
key human resource function concerned with evaluation of employee’s performance.
Performance appraisal is the formal assessment and rating of individuals by their managers
at or during a review meeting. Performanceappraisal or employee is a method by which the
job performance of an employee is evaluated generally in terms of quality, quantity, cost
and time typically by the immediate line manager or supervisor.
Performance appraisals allow managers to make appropriate adjustments in the current
performance levels. Performance management is a crucial tool for directors to advance
competitiveness for their organization through creating a competitive edge with a highly
skilled labor force. Through training and development, employees can perform efficiently
and prepare for future challenges. Through performance appraisals, managers are also able
to make decisions on compensation adjustments and promotion for their human resource.
Performance appraisals are a formal and systematic assessment of the performance of
employees by managers and directors to understand the labor force regarding abilities to
further growth. The process involves managers measuring and evaluating job related
behaviors of their employees and the outcomes to determine the level of employee
performance and explanations and ways to improve the current levels of performance in
future for the benefit of the organization. The appraisals take a systematic approach where
supervisors measure employee’s remuneration against set targets and plans. Directors then
take into account factors influencing the results of the appraisals from the employees. The
employers are then in a position to guide their labor force to improved performance. An
improvement in the performance of an organization accrues when its workforce is
competent and performs at an optimum level.
Identification during the process of appraisal allows the manager to determine what areas
of the job should be examined when measuring performance. Measurement is at the core
of the assessment system. It involves checking the strengths and weaknesses of employee’s
performance and management of the process means that the system should be future
oriented by giving the resource feedback to provide guidance and higher performance levels
in future.
Statement the Problem
Performance appraisals are a critical component of human resource management. Recent
years have seen an increase in their use among organizations motivated by the desire to
drive employees' behaviors and attitudes and ultimately the team's performance.
Establishment of goals and objectives at the beginning of financial years for organizations
provide employees with clear performance targets and enables the managers to monitor
performance during the cycle. Performance appraisals help reinforce good performance,
alert managers to the need for training and development in certain areas or the need to
offerassistance to poorly performing personnel and establish systems or reward and
promotions all geared towards improving performance.

OBJECTIVES
 To find out the various performance appraisal techniques used.
 To identity some common appraisal problems of employees.
 To determine the measure used by managers to solve the problems of performance
appraisals on employee.
 To examine the most effective performance appraisal that exists.

Scope of the study

Emphasis will be on key words of performance appraisal, its steps, process and problem that
are involved and also effects of performance appraisal on productivity and training for
improved performance and to be analyzed. Also a study on how employee’s appraisal is
carried out by every department but is the personnel department which is one of the main
functions.

RESEARCH METHODOLOGY
Research methodology is a science that can be used to solve the research problem. Research
methodology deals with the objective of the research study, the method of defining the
research problem, the type of hypothesis formulated, the type of data collected method used
for collecting and analysis the data etc.

DATA COLLECTION METHOD

Data can be numbers, words, measurements, observation or even just description of things.
Both primary and secondary data are used for the purpose of the study.
PRIMARY DATA
Primary data refers to the first hand information that an investigator himself collects from the
respondents. It’s direct and original in nature.

METHODS USED FOR COLLECTING PRIMARY DATA

a. Questionnaire
This is an important method of data collection, under this method a list of questions are
called questionnaire.

b. Personal interview
The enumerator makes personal contact with the respondent. The researcher clarify the
doubts of the respondents while answering the queries, which makes it a more accurate
mode of data collection.

SECONDARY DATA
Secondary data is the information collected from those data which have already been
obtained by some other researcher/author.

Sources of secondary data

a) Website

b) Magazines

c) Profile of the company

d) Reports of the organization

Secondary data helps to save money and time. The main demerit of the secondary data is that,
it is less accurate and less reliable.

SAMPLING
Sampling is defined as the process of selecting a representative portion of the population
under study for analysis. The representative portion is called sample. The study of sample
reveals the characteristics of the problem.

UNIVERSE
The employees of Mangalam Publications PVT.LTD were chosen as the universe under
study.
SAMPLE SIZE
The present study was conducted among the employees of Mangalam Publications PVT.
LTD. The sample size of this study is 50.

PROBABILITY SAMPLING
The probability samples are resulting from a process of random of random selection, where
by each and every elements in the universe has a known chance of been selected for the
sample. There is a little scope for the bias in this method. The main probability sampling
methods are simple random sampling and restricted random sampling.

RESESRCH DESIGN
Research design is a plan. Structure and strategy of Investigation conceived so as to obtain
answers to research questions to control variance. In fact, the research design is the
conceptual structure within which research is conducted.

TOOLS USED FOR ANALYSIS OF DATA

After the data collection, it was analyzed through percentage method coding was done and
master chart was drawn.
Percentage Analysis =number of respondents *100/total number of population.

PERIOD OF THE STUDY

The study is conducted for a period of 1 month.

LIMITATIONS OF THE STUDY

 Most of the employees do not provide correct information.
 Employees have negative attitude towards the study.
 The period of collection of data is only about 31 days.