PROJECT

OF

PERFORMANCE APPRISAL

IN

DUTEST INDUSTRIAL EST

BIN DASMAL GROUP

Submitted to Submitted by:

Mr. DUNCAN ROGER HETAL JADEJA
GENERAL MANAGER
CONTENTS
1. ACKNOWLEDGEMENT
2. CERTIFICATES
3. EXECUTIVE SUMMARY
4. INTRODUCTION
5. DUTEST PROFILE
6. STUDY DESIGN
7. LIMITATION
8. INTRODUCTION TO PERFORMANCE APPRAISAL
9. NEED FOR PERFORMANCE APPRAISAL
10.ACHIEVING ORGANIZATIONAL GOAL
11.CHARACTERISTIC OF GOOD PERFORMANCE APPRAISAL
12.EVALUATION TECHNIQUE
13.METHOD OF PERFORMANCE APPRAISAL
14.FACTOR INFLUENCING PERFORMANCE OF AN EMPLOYEE
15.ADVANTAGES
16.DATA ANALYSIS AND INTERPRETATION
17.FINDING
18.SUGGESTION
19.CONCLUSION
20.WEBLIOGRAPHY
21.BIBILOGRAPHY
22.APPENDICES

ACKNOWLEDGEMENT
It is a matter of great pleasure to thank all esteemed persons who helped me
to complete my final research project successfully otherwise it would not been
possible.
Acknowledgement is not only a ritual, but also an expression of indebtedness
to all those who have helped in the completion process of the project. One of
the most pleasant aspects in collecting the necessary and vital information and
compiling it is the opportunity to thank all those who actively contributed to it.
I like to express my deepest gratitude and thanks to Mr. Duncan Roger for the
valuable guidance and constant encouragement which he extended to me
throughout my research project.
Last but not least I would like to pleasure a word of appreciation to my family
&
friends who supported & helped me to make this project a success.

1. EXECUTIVE SUMMARY
 The history of performance appraisal is quite brief. Its roots in the early 20th
century can be traced to Taylor's pioneering Time and Moti on studies. But this
is not very helpful, for the same may be said about almost everything in the
fi eld of modern human resources management. As a disti nct and formal
manageme nt procedure used in the evalua ti on of work performance, appraisal
really dates from the ti me of the Second World War - not more than 60 years
ago.

In many organizati o ns - but not all - appraisal results are used, either directly
or in directly, to help determine reward outcomes. That is, the appraisal
results are used to identi fy the bett er performing employees who should get
the majority of available merit pay increases, bonuses and promoti ons.

By the same token, appraisal results are used to identi fy the poorer
performers who may require some form of counselin g, or in extreme cases,
demoti on , dismissal or decreases in pay. (Organizati ons need to be aware of
laws in their country that might restrict their capacity to dismiss employees or
decrease pay.)

The purpose of this study has been to determine whether the performance
appraisal was used for employee development and whether the appraisal was
emphasized as an important part of the performance appraisal process. Also
whether the performance appraisal helps in increasing company’s profi tability.

Our study suggeste d that the performance appraisal has helped in increasing
the profi tability of Dutest which was clearly shown by their performance on
Data Summary. Certain loop holes has been determined and suggesti o ns were
made.

2. INTRODUCTION
Almost every organization in one way or another goes through a periodic ritual, formally
or informally, known as performance appraisal. Performance appraisal has been called
many things. The formal performance appraisal has been called a tool of management, a
control process, an activity and a critical element in human resources allocation. Uses
for performance appraisal have included equal employment opportunity considerations,
promotions, transfer and salary increases. Primarily performance appraisal has been
considered an overall system for controlling an organization. Performance appraisal has
also been called an audit function of an organization regarding the performance of
individuals, groups and entire divisions.

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.

Almost every organization in one way or another goes through a periodic ritual, formally
or informally, known as performance appraisal. Performance appraisal has been called
many things. The formal performance appraisal has been called a tool of management, a
control process, an activity and a critical element in human resources allocation. Uses
for performance appraisal have included equal employment opportunity considerations,
promotions, transfer and salary increases. Primarily performance appraisal has been
considered an overall system for controlling an organization. Performance appraisal has
also been called an audit function of an organization regarding the performance of
individuals, groups and entire divisions.
3. Group Profile – Bin Dasmal Group

The Bin Dasmal Group is a thirty year legacy founded and headed by Mr. Khalifa
Abdulla Bin Dasmal. Headquartered at Dubai, the group is today a success story that
has transcended boundaries. And it is one that has been able to integrate the tasks of
being a leading service provider to a variety of businesses and an emerging player in
the phenomenal growth of Dubai.

The Bin Dasmal group is one that has embraced diversification as a natural formula for
success. Its interests include:

General Trading  
Industrial Services
Special Access Services
Information Technology
Air Conditioning
Manufacture & Installation of Doors
Air Systems Industries
Auto Spare Parts
Coatings For Commercial/Residential
Complexes
Power Generator Renting, Servicing & Manufacturing

Each division of the group is driven by a zest to be at the forefront of its sector. Each
facet of service functions as a distinct identity and is professionally managed by a team
of qualified experts. Yet, every unit is bound together by a common thread of values.
The fulcrum of the entire group rests on a sound business model that emphasises the
need to enhance quality in order to achieve consistent, sustainable growth.
Through thirty years of servicing the requirements of local giants like DUBAL, the Dubai
Ports Authority, the Dubai Petroleum Company and Emirates Airlines, the Bin Dasmal
Group has been able to establish a powerful presence in the Middle East.

Bin Dasmal Group of Companies

Industrial:

Dutest Industrial

Dutest Industrial Establishment is the market leader in Specialised Industrial Services in

the UAE. The manufacturing division of Dutest focuses on the manufacture and
assembly of a comprehensive range of lifting equipment accessories.

Bin Dasmal Doors

Bin Dasmal Doors a 1995 company has grown to become a leader in the supply,
installation and commissioning of industrial, commercial and residential doors in the
UAE. Bin Dasmal Doors brings to its valued customers the world’s best brands of doors,
shutters and gates through its long standing association with leading door
manufacturers in the USA, UK, Canada and Europe.

Bin Dasmal Air Systems Industries

Bin Dasmal Air Systems Industries has a huge state-of-art manufacturing facility at Dubai
Investments Park, a team of experienced and skilled personnel for manufacturing,
testing and marketing the entire range of products in Middle East and Africa.

KAD Air Conditioning

 KAD Airconditioning manufactures, supplies and installs ducting systems for both
domestic and industrial air conditioning systems. Made from high grade GI sheets
imported from Japan, South Africa and India

Interdeco Paints
Bin Dasmal - Interdeco paints has emerged as one of leading architectural finish
coating technology forces in UAE. As we contribute to create good circumstances for
a living life that makes people be pleased, we materialize the affluent society.

Retail:

Bin Dasmal Auto Spare Parts

Bin Dasmal Auto Spare Parts Co holds large stocks of OEM's (Original Equipment
manufacturer) for heavy goods vehicles of Mercedes, Volvo, Scania, Iveco and MAN.
The management and counter sales team offer a wealth of experience to all their
clients.
 K & J Power House
K&J Power House Equipment LLC. K&J is recently set up in Dubai Investment Park,
Jebel Ali and have started with a Plant Hire Division, renting out Generators from 12
KVA up to 2500 KVA.

KBD Coatings
KBD(Khalifa Bin Dasmal) Coatings offers a range of coating solutions in the UAE. It
has been credited with executing its complete coating services for a line of
prestigious clients, thus establishing itself as a trusted name in enhancing the
aesthetic appeal of virtually any kind of building infrastructure, such as, high rise
towers, hotels, clubs and shopping malls.

Real Estate
Bin Dasmal Contracting

Bin Dasmal Contracting consists of experienced engineers, supervisors and

technicians who are responsible in ensuring round the clock client satisfaction.

Company Profile – DUTEST

Dutest Industrial Establishment is the market leader in Specialised Industrial Services in
the UAE. The company has been able to stay in the forefront of providing value added
services by constantly upgrading and investing in its technical infrastructure.

The manufacturing division of Dutest focuses on the manufacture and assembly of a

comprehensive range of lifting equipment accessories like:

Wire Rope Slings

Chain Slings
Web (Polyester) slings

The accessories are manufactured as per customer specifications and conform to

international standards. All materials are subjected to internationally recognised quality
monitoring procedures, thereby ensuring supply of top quality equipment to the
customers. Dutest is a supplier of Shackles and other lifting accessories of reputed
proprietary brands.

The testing and inspection division of Dutest carries out third party inspection of all
types of cranes and lifting equipment.

Testing & Inspection of all types of Cranes & Lifting Equipment.

The testing and inspection procedures conform to BS/EN standards and are in
accordance with the LOLER and PUWER approved codes of practice and guidance.
The Proof Load tests are conducted using test weights or calibrated test beds. The
company also has facilities to carry out load tests using water weights. Inspections
  are normally visual but, Dutest engineers are trained to conduct magnetic particle
inspection as well. They also undergo constant assessment and training to keep up
to current technological standards.

Bollard testing of marine equipment.

Dutest’s calibrated load cells with capacities of up to 100 tonnes can be used to
conduct pull tests on vessels such as Tugs and Supply ships.

Dutest is the sole distributor for Robway Load Indicators in the Middle East and
surrounding areas. Dutest is also involved in the supply, maintenance & servicing of
Crane and Lifting Equipment including Demag, Kone and Caruthers.

Dutest Specialist Access Services division utilises Rope Access to gain safe and efficient
to buildings, telecommunication towers, bridges, cranes, booms and offshore
installations.

Dutest Industrial Establishment has a comprehensive Quality Management System

which complies with BS EN 9001:2000, this ensures that all work undertaken, is
completed in a professional, regulated and quality assured manner. Dutest is also an
overseas associate member of L.E.E.A and member of BSI and is currently working
towards the ISO 17020 norms to endorse the high quality of its testing capabilities.
Management System which complies with BS EN 9001:2000, this ensures that all work
undertaken, is completed in a professional, regulated and quality assured manner.
Sales & Marketing

Dutest is the sole distributor for Robway Load Indicators in the Middle East and
surrounding areas. The Robway RCI Range of crane monitoring systems is simple to
operate and has been designed to withstand the harsh climates associated with the
region.

Dutest is also involved in the supply, maintenance & servicing of Crane and Lifting
Equipment including Demag, Kone and Caruthers. Additional services offered include:

Training of Riggers
Plan supervise and produce lift plans for heavy lifts

Rope Access

Dutest Specialist Access Services division utilises Rope Access to gain safe and efficient
access to buildings, telecommunication towers, bridges, cranes, booms and offshore
installations.

With its efficient team of trained rope access specialists, Dutest has been able to
effectively conduct inspection, maintenance, cleaning, demolition, repair, painting, grit
blasting, welding and other such services with a high degree of accuracy.

Applications include:

Conventional Inspection
Maintenance
Blasting & Painting
Industrial cleaning, High and Low pressure wash downs including
Ultra High pressure
Demolition
Construction
Consultancies
Electrical work, cable installation and removal
CCTV
Repairs (all forms)
Eyebolt Installation
 Signboard & banner installation and removal Sub Sea surveys, visuals, photographic etc

All staff members are highly skilled multi- disciplined, rope access technicians and are
independently assessed to IRATA (Industrial Rope Access Association) standards from
the UK . This enables them to work on any building or structure onshore and offshore to
unlimited or extreme locations.

Some of the prestigious clients of the rope access

Burjuman
The Jumeirah beach hotel group
Lamcy Plaza

Dutest Industrial Est. have once again earned their certification from DET NORSKE
VERITAS for ISO 9001:2000 for the manufacture, supply, testing and inspection of lifting
equipments.

Dutest Inspection Services was awarded the “Best Accredited Inspection

Body – 2007” by Dubai Accreditation Department.

Organisation Chart - DUTEST Industrial EST

4. Study Design
 Objectives of Performance Appraisal

Employees would like to know from a performance appraisal system:

 concrete and tangible particulars about their work; and

 Assessment of their performance.

This would include how they:

did;

could do better in future;

could obtain a larger share of rewards; and

Could achieve their life goals through their position.

Therefore an employee would desire that the appraisal system should aim at:

their personal development;

their work satisfaction; and

Their involvement in the organization.

From the point of view of the organization, performance appraisal serves the purpose
of:

providing information about human resources and their development;

measuring the efficiency with which human resources are being used and
improved ;

providing compensation packages to employees; and

Maintaining organizational control.

Performance appraisal should also aim at the mutual goals of the employees and the
organization. This is essential because employees can develop only when the
organization’s interests are fulfilled. The organization’s main resources are its
employees, and their interest cannot be neglected. Mutual goals simultaneously provide
for growth and development of the organization as well as of the human resources. They
increase harmony and enhance effectiveness of human resources in the organization.
SCOPE OF PERFORMANCE APPRAISAL
To be instrumental in helping employees to better understand To help each employee
understand more about their role and become clear about their functions;

Their strengths and weaknesses with respect to their role and functions in the
organization;

To help in identifying the developmental needs of employees, given their role and
function;

To increase mutuality between employees and their supervisors so that every

employee feels happy to work with their supervisor and thereby contributes
their maximum to the organization;

To act as a mechanism for increasing communication between employees and

their supervisors. In this way, each employee gets to know the expectations of
their superior, and each superior also gets to know the difficulties of their
subordinates and can try to solve them. Together, they can thus better
accomplish their tasks;
To provide an opportunity to each employee for self-reflection and individual
goal-setting, so that individually planned and monitored development takes
place;

To help employees internalize the culture, norms and values of the organization,
thus developing an identity and commitment throughout the organization;

To help prepare employees for higher responsibilities in the future by

continuously reinforcing the development of the behavior and qualities required
for higher-level positions in the organization;

To be instrumental in creating a positive and healthy climate in the organization

that drives employees to give their best while enjoying doing so; and

To assist in a variety of personnel decisions by periodically generating data

regarding each employee.
5. Limitations:

 The study is limited to DUTEST

 Study is limited to selected group from the main stream of the organization.

 Sample size is limited to 50 respondents, Problems with confidential information.

 The responses would have also been affected by the amount of work and working
conditions.

 Study includes both collections of data from primary as well as secondary sources.

 There is a high chance of sampling error.

ERRORS OCCURRED IN PERFORMANCE APPRAISAL

One of the biggest problems with performance appraisal is the fact that most people are not
accurate raters of others’ performance. When an employee’s performance rating does not
reflect their true or actual performance, we say a rater error has occurred. The most common
rater errors are:-

Halo / Horn Effect

Central Tendency

Recency

Leniency

Bias

ERROR DEFINITION EXAMPLE

Inappropriate generalizations from one
Halo/horns
aspect of an individual’s performance to all
effect
areas of that person’s performance
The inclination to rate people in the middle
Central
scale even when their performance clearly
tendency
warrants a substantially higher or lower rating
Recency The tendency of minor events that have
happened recently to have more influence on
Manoj’s outstanding writing ability
caused his supervisor to rate him
highly in unrelated areas where his
performance was actually
mediocre.
Because Rahul had a concern that
he would not be able to deal with
confrontation during an appraisal
session, he rated all of his
employees as “Meets
Expectations.”
Sudha kept no records of Critical
incidents. When she began writing
 the appraisals for her employees
the rating than major events of many months
effect she discovered that she could only
ago
recall examples of either positive
or negative performance for The
last two months.
Reema , attributes the successes of
Attribution The tendency to attribute performance
her work group to the quality of
bias failings to factors under the control of the
her leadership and the failings To
individual and performance successes to
their bad attitudes and inherent
external causes
laziness.

6. Introduction to performance appraisal system

 Performance Appraisal has been around of hundreds of years, as it is only human nature
to evaluate fellow colleagues. Effective appraisal system should address clarity,
openness, fairness; recognize productivity through reward; & be cognizant to appraisal
leadership qualities.

“Performance Appraisal is the process of evaluating the performance & qualification of

the employees in terms of the requirements of the job for which he is employed, for the
purpose of administration including placement, selections for promotions, providing
financial rewards & other action which required differential treatment among the group
as distinguished from actions affecting all member equally. BY HEYEL

“Performance Appraisal determines who shall receive merit increase, counsel’s

employees their improvement; determines training needs; determines promo ability;
identifies those who should be transferred more over, it improves employee job
performance; encourage employees to express their views or to seek clarification on
duties; broadens thei9r capacity & potential; promotes a more effective utilization of
manpower and improves placement ; facilitates selection, reward & increase the
analytical abilities of supervisors.” BY RONALD BENJAMIN

Key to assessing an employee’s performance is the setting of objectives. A key element

of the performance appraisal process should be reviewing how well the employee has
performed in relation to objective that has been previously set for them. For objectives
to be useful, it’s often said they should be SMART.

Specific.

Measurable.

Achievable (Occasionally agreed between the line manager & employee).

Result oriented.

Time framed (with asset date for competition).

7. Need for Performance Appraisal

To effect promotion based on competence and performance.
 To assess the training &development needs of the employees.

To bridge the gap between the existing performance & desired performance.

To help each employee to understand his own strengths &weakness.

They can be mechanism of increasing communication between the employee &his

Supervising officer so that each employee gets to know the difficulties of his
subordinates and attempt to solve them.

It provides legally defensible reasons for making promotion, transfer, and reward
and discharge decisions.

They can be instruments to provide an opportunity for employees for self reflection
And goal setting so that individually planned and monitored development takes
place.

They can assist in a variety of personnel decisions by generating data about each
employee periodically.

Develop inter personal relationship.

To help in salary increment.

To prevent grievance & in-disciplinary activities.

Provide information about the performance ranks.

Multiple Purposes of Performance Assessment

General Applications Specific Purpose

Developmental Uses
Administrative Uses/Decisions
Identification of individual needs
Performance feedback
Determining transfers and job assignments
Identification of individual strengths and development needs

Administrative Uses/Decisions

Salary
Promotion
Retention or termination
Recognition of individual performance
Lay-offs
Identification of poor performers
Organizational Maintenance/ Objectives
 HR planning
Determining organization training needs
Evaluation of organizational goal achievement
Information for goal identification
Evaluation of HR systems
Reinforcement of organizational development needs

Documentation

Criteria for validation research

Documentation for HR decisions
Helping to meet legal requirements

8. Achieving organization goals

 The achievement of an organization’s goals rests with its people. The more talented the people
and the better they are managed and coordinated toward those goals the greater the chance of
success. Performance appraisal is all about providing a way to do this.

The appraisal process starts with a manager and employee setting goals for the year together.
The most effective goals are measurable and have easy to understand performance standards.

9. Characteristic of Good Performance Appraisal

 Increase motivation to perform effectively.

Increase staff self-esteem.

Gain new insights into staff and supervisor.

Better clarity &define job function &responsibility.

Develop valuable communication among appraisal participants.

Encourage increase self –understanding among staff as well as insight into the kind
of development activities that are of value.

Distribute rewards on a fair & credible basis.

Clarify organizational goals so they can be more readily accepted.

Improve institutional/departmental manpower planning, test validation,&

development of training programs.

10.Evaluation Technique
In setting objectives to be followed by the employee to be evaluated, the following
Principles are to be met (smart objectives).

Specific.
Measurable.
Achievable (occasionally agreed between the line manager &employee.
Result orientate in a company.
Times framed (with a set date for competition).

Basically there are two types of performance appraisal done on the basis of post of the
Dutest’s employee. They are:

Executive performance appraisal system

Non-executive performance appraisal system

Executive performance appraisal system

This system is for performance appraisal for executives of the level E-0 to E-4. The
various steps involved are:

A) Self Appraisal Performance Review & Planning

I. Appraisees write his view over the actual achievement for the Key
performance area / Task and Target assigned to him for the year.
II. Comments on fulfillment of KPA / Task and Target are written by the
Reporting Officer, taking account of time frame also.
III. Special Jobs other than tasks given and normal routine work are written by
appraise.

B) Performance Review Discussion

I. Both appraise and reporting officer sit together.

II. Comment over Strengths and weaknesses and areas for development are
written which is undersigned by both.
III. Appraise can help the reporting officer by giving examples which shows his
strength or weakness. He also tells what training he wants to undergo.

C) Performance Assessment

I. Ratings between 1 to5 are given to the appraise by the Reporting Officer
and Reviewing Officer individually on the basis of Performance Factors and
Potential Factors.
 Performance Factors: Quantity of output
Cost control
Job Knowledge and Skill
Team spirit and Lateral
Coordination
Discipline
Development & Quality of assessing
Subordinates
Special Relevant factor

Potential Factors: Communication

Initiative
Commitment and sense of Responsibility
Problem Analysis and Decision making
Planning and Organizing
Management of Human resources

II. Different weight age are given to each factor

III. Final scores are calculated by multiplying rating and weight age .By adding
these Total Factor Score is calculated.
IV. Comments on Overall Performance and Potential are written by both
Reporting and Reviewing Officers individually.

D) Suggestions for Job Rotation and Job Enrichment

I. Both reporting and reviewing officers write their suggestions whether the
appraise should be transferred to other department. Either a good employee is
transferred so that he can acquire knowledge of all the departments, or a
worst performing employee is transferred so as to improve his performance.
II. In some exceptional case Head of department give his comments on overall
performance & potential of the employee.

E) Final Assessment

I. Total Factor Score by both Reporting and reviewing officers is written and
average is calculated.
II. Final Grading between O / A / B / C is given.
III. If Final Grade is C, indicate whether to promote or not to promote the
appraise.
IV. If not to promote give reasons.
V. Meeting with non-promotable appraise.

NON-Executive performance appraisal system

 I. Rating are given by both Reporting and Reviewing officers on the basis of
performance of the appraise depending upon factors:

Performance on the Job

Job Knowledge & skill

Multi-skill Utilization

Conduct & behaviour

Punctuality & availability on job

Innovativeness

Cost & Quality Consciousness

Initiative & Capacity to assume higher responsibility

Housekeeping & safety consciousness

II.Weightage are given to various factors.

III.Scores out of 100 are calculated by multiplying rating with weight age.
IV. O / A / B / C / C- Grades are given according to scores and attendance of the
appraise.
V. If grade is C- , then appraise is interviewed by the Head of Department.

11.METHODS OF PEFORMANCE APPRAISAL

Once the employees has been selected, trained and motivated, he is then apprised for his
performance. Performance appraisal is the step where the management finds out how effective
it has been hiring and placing employees. If any problem is identified, steps are taken to
communicate with the employees and to remedy them. So “so a performance appraisal is a
process of evaluating an employee’s performance of a job in terms of its requirement “
Several methods and techniques of appraisal are available for measurement of the
performance of the employee. The methods and scales differ for obvious reason. First
they differ in sources of traits and qualities to be apprised. The quality may differ
because of difference in job requirements. Second they differ because of different kinds
of workers who are being rated .third the variation may be caused by the degree of
precision attempted in an evaluation. Finally they differ because of the method used to
obtain weighting for various traits.

The performance appraisal method is divided into three categories these are
Trait-based method
Behavioral method
Comparative method
Result oriented method

The part concerned with me is the comparative methods. There are so many methods
which are include in comparative method

Individual Evaluation Methods

Confidential report
Essay evaluation
Critical incidents
Checklists
Graphic rating scale
Behaviorally anchored rating scale
MBO
Group Appraisal

Straight ranking method (Essay Evaluation)

It is the oldest and simplest method of performance appraisal, by which the man
and his performance are considered as an entity by the rater. No attempted is to
made to fractionalize the rate; the whole man compared with the whole man;
that is the ranking of a man in a work group is done against that of another. The
relative position of each man is tasted in terms of his numerical rank.

Limitation-
This is the simplest method of separating the most efficient from the
least efficient and relatively easy to develop and use. But the greatest
limitation of his method is the
In practice it is very difficult to compare a single individual with human
beings having various behavior traits
 The method only tell us how a man stands in relation to the others in the
group but does not indicate how much better or worse he is than
another
It is difficult task when large number of person are rated
It does not eliminate snap judgment.

Critical Incident method

The essence of this system is that it attempts to measure workers performance in

terms of certain events and episode that occur in the performance rates job. These
events are known as critical incident method. The supervisor keeps a written record
of the event that can easily recalled and used at the time of performance appraisal

Limitation

Negative incident are generally more noticeable than positive ones

The supervisor may be put off and easily forgotten
Very close supervision may be required and it may not be like by the
employee

Ex: A fire, sudden breakdown, accident

Workers reaction scale

A informed the supervisor immediately 5

B Become anxious on loss of output 4

C tried to repair the machine 3

D Complained for poor maintenance 2

E was happy to forced test 1

Checklist method

Under this method the rater does not evaluate employee performance; he supplies
report about it and the final rating is done by personnel department. A series of
question are presented concerning an employee to his behavior. The rater then
checks to indicate if the answer to a question about an employee is positive or
negative. The value of each question may be weighed equally or certain question
may be weighed more heavily then others.

Limitation-
This method suffers from bias on the part of the rater because he can distinguish
positive or negative question
Process can be expensive and time consuming
Separate checklist must be developed

Simple checklist method

Weighted checklist method
Forced choice method

Simple checklist method:

Is employee regular Y/N

Is employee respected by subordinate Y/N

Is employee helpful Y/N

Does he follow instruction Y/N

Does he keep the equipment in order Y/N

Weighted checklist method

weights performance rating (scale 1 to 5 )

Regularity 0.5

Loyalty 1.5

Willing to help 1.5

Quality of work 1.5

Relationship 2.0

Forced choice method

It attempts to correct a rater tendency to give consistently high or low rating

to all the employees under this method the rating elements are several sets
of pair phrases or adjective relating to job proficiency and personal
qualification the following statement are illustrative of the type of statement
that are used
Organize the work well
Lacks the ability to make people feel at ease
Has a cool even temperament
Is punctual and careful
Is a hard worker and co-operative
 Limitation-

Trained technicians are required prepare sets of series for each

occupational group
Most of the raters become irritated with the test because they are
not being trusted
The result of evaluation don’t prove useful for training purposes
because the rate is ignorant of how he is evaluating the individual

Criteria Rating

1. Regularity on the job Most Least

• Always regular
• Inform in advance for delay
• Never regular
• Remain absent
• Neither regular nor irregular

Graphic Rating Scale

This is the most commonly used method of performance appraisal. Under it a

printed form one for each person to be rated. The factors which are including in this
method are employee characteristics and employee contribution. In employee
characteristics are included are leadership, attitude, enthusiasm, locality creative
ability, analytical ability, co-ordination. In the employee contribution are include the
quantity and quality of work, the responsibility assumed, specific goal achieved,
regularity of attendance. These traits then evaluated on continuous scale where in
the rather place a mark somewhere along a continuum

Limitation-

However this method also not free from limitation

The rating is generally subjective often the rating cluster on the high side when
this method is used
Another severe limitation is that it assume that each characteristics is equally
important for all jobs

Continuous Rating Scale

Discontinuous Rating Scale

Continuous Rating Scale

Employee name_________ Deptt_______

Rater’s name ___________ Date________
--------------------------------------------------------------------------------------------
 Exc. Good Acceptable Fair Poor
_______________5 4 3 2 1 _
Dependability
Initiative
Overall output
Attendance
Attitude
Cooperation
Total score

Discontinuous Rating Scale

Very
enthusiastic
Attitude
BARS( Behaviorally Anchored Rating Scale)

The term used to describe a performance rating that focused on specific behaviours
or sets as indicators of effective or ineffective performance, rather than on broadly
stated adjectives such as "average, above average, or below average". Other
variations were:

Behavioral observation scales

Behavioral expectations scales

Numerically anchored rating scales

Step 1. Identify critical incidents

Step 2. Select performance dimension

Step 3. Retranslate the incidents

Step 4. Assign scales to incidents

Step 5. Develop final instrument

MBO Process

The management by objectives performance appraisal method has the supervisor

and employee get together to set objectives in quantifiable terms. The appraisal
method has worked to eliminate communication problems by the establishment of
regular meetings, emphasizing results, and by being an ongoing process where new
objectives have been established and old objectives had been modified as necessary
in light of changed conditions.
 Set organizational goals
Defining performance target
Performance review
feedback

Group Appraisal

Ranking
Paired comparison
Forced distribution
Performance tests Field review technique

Ranking method

The term ranking has been used to describe an alternative method of

performance appraisal where the supervisor has been asked to order his or her
employees in terms of performance from highest to lowest.

Employee Rank

A 2

B 1

C 3

D 5

E 4

Paired comparison method

The term used to describe an appraisal method for ranking employees. First, the
names of the employees to be evaluated have been placed on separate sheets in
a pre-determined order, so that each person has been compared with all other
employees to be evaluated. The evaluator then checks the person he or she felt
had been the better of the two on the criterion for each comparison. Typically
the criterion has been the employees over all ability to do the present job. The
number of times a person has been preferred is tallied, and the tally developed is
an index of the number of preferences compared to the number being
evaluated.

A B C D E Final Rank

A - - - + + 3

B + - - + + 2
 C + + - + + 1

D - - - - + 4

E - - - - - 5

No of Positive evaluation
Total no. of evaluation * 100 = employee superior evaluation

Forced Distribution method

This system is used to eliminate or minimize rater’s bias so that all the personnel
may not be placed at the higher end or lower end of the scale. It requires the
rater to apprise an employee according to a predetermined distribution scale
under this system it is performance and promo ability. For this purpose a five
point performance scale is used without any descriptive statement. Employees
are placed between the two extreme good or bad job performances. For ex 10%
given to outstanding, 20% given to good and 40% given to satisfactory.

Limitation-
This method use in wage administration leads to low morale and low productive

Force distribution curve

Field review method

Performance subordinate peers superior customer

Dimension

Leadership ^ ^

Communication ^ ^

Interpersonal skills ^ ^

Decision making ^ ^ ^

Technical skills ^ ^ ^

Motivation ^ ^ ^

Process of Performance Appraisal

12.Factor influencing Performance of an Employee
Intelligence.

Integrity and dependability.

Clarity of objectives.

Contribution to team work.

Public relation.

Data management.

Attitude.

Initiative and original thinking.

Creativity and accuracy.

Quality of work and quality of output.

Knowledge of job.

Acceptance of responsibility.
 Development of subordinates.

Risk-Taking.

Delegating.

PERFORMANCE INTERVIEW
Performance interview is another step in the appraisal process. Once appraisal has been
made of employees, the raters should discuss and review the performance with the
ratees, so that they will receive feedback about where they stand in the eyes of
superior. Feedback is necessary to effect improvement in performance, especially when
it is inadequate. Specifically, performance interview has three goals:

(i) to change behaviour of employees whose performance does not meet

organisational requirements or their own personal goals.
(ii) To maintain the behaviour of employees who perform in an
acceptable manner and

(iii) to recognize superior performance behaviours so that they will be continued.

Raters offer feedback to the ratees through several methods-tell and sell, tell and listen,
problem solving and mixed. In tell and sell, also called directive interview, the
interviewer let assesses know how well they are doing and sells them on the merits of
setting specific goals for improvement, if needed. The tell and listen interview provides
the subordinates with chances to participate and establish a dialogue with their
superiors.

Its purpose is to communicate the rater's perceptions about the ratee's strength and
weaknesses and let the subordinates respond to these perceptions. In the problem –
solving or participative interview, an active and open dialogue is established between
the superior and the subordinate. Not only are perceptions shared, but also solutions to
problems are presented, discussed, and sought. Mixed interview is a combination of tell
and sell and problem solving interviews.

Whatever be the approach followed, the emphasis in the interview should be on

counselling and development and not on criticism, witch-hunting and buck passing.
Because of the significance of appraisal interview, every effort must be made to make it
effective. Guidelines given in Table below will help make the interview successful.

GUIDELINES FOR EFFECTIVE APPRAISAL INTERVIEW

Select a good time
Minimize interruptions
Welcome, set at ease
Start with something positive
Ask open – ended questions to encourage discussion
Listen
Manage eye contact and body language
 Be specific
Rate behaviour, not personality
Layout development plan
Encourage subordinate participation
Complete form
Set mutually agreeable goals for improvement
End in a positive, encouraging note
Set time for any follow – up meetings

13.Advantages

Performance appraisal system can be put to several uses converting the entire spectrum
of human resource function in the organization. The uses which performance appraisal
serves are:

To take decision on termination.

Diagnosing individual and organizational problem.

To identify individuals with high potential.

Systematic efforts to tone up performance results, corrective actions and

appropriate feedback.

Input for an array of professional decision such as placement, promotion, transfer,

and reward.

Improving Performance
An effective appraisal system can contribute to competitive advantage by
improving employee job performance in two ways-by directing employee
behaviour towards organizational goals, as was done by the second beekeeper
 (see opening case), and by monitoring that behaviour to ensure that the goals
are met.

Making Correct Decisions

As stated above, appraisal is a critical input in making decisions on such issues as
pay raise, promotion, transfer, training, discharges and completion of
probationary periods. Right decision on each of these can contribute to
competitive strength of an organization. If promotion, for example, is made on
performance, the promotee feels motivated to enhance his or her performance.

Ensuring Legal Compliance

Promotions made on factors other than performance might land up a firm in a

legal battle, thus diverting its focus on non-productive areas, as it happened to
Williamson Magar. Organizations can minimize costly performance-related
litigation by using appraisal systems that give fair and accurate ratings.

Minimizing Job Dissatisfaction and Turnover

Employees tend to become emotional and frustrated if they perceive that the
ratings they get are unfair and inaccurate. Such employees find that the efforts
they had put in became futile and obviously get de-motivated.

Dissatisfaction in the job sets in and one of the outcomes of job dissatisfaction is
increased turnover. Fair and accurate appraisal results in high motivation and
increased job satisfaction. An organization having satisfied and motivated
employees will have an edge over its competitors.

USE OF APPRAISAL DATA

The final step in the evaluation process is the use of evaluation data. The data and
information generated through performance evaluation must be used by the HR
department.

It may be recollected that the most significant rewards employers offer to

employees are:

Money to purchase goods and services required not only for current and future
survival, but also for the luxuries modern life has to offer.

The opportunity to use innate and learned skills and talents in a productive
manner that the individual and his or her managers and co-workers recognize as
valuable.

Opportunities to interact with other people in a favorable working environment.

Opportunities to learn, grow, and make full use of their potential.

A sense of performance and stability through the continuing existence of the

 organisation and the job.

The opportunity to perform work assignments within an environment that not

only protects. But promotes physiological, emotional and psychological health.

In one way or another, data and information outputs of a performance-appraisal

programme can critically influence these coveted employer-employee reward
opportunities. Specifically, the data and information will be useful in the following
areas of HRM:

Remuneration administration
Validation of selection programmes
Employee training and development programmes
Promotion, transfer and lay-off decisions
Grievance and discipline programmes
HR planning

BENEFITS TO THE ORGANIZATION :

Facilitates the achievement of organization goals and strategies.

Contributes to improved staff morale.

 Facilitates continuous performance improvement, organization development
and culture change.

Assists in establishing a performance culture – of quality, efficiency and

achievement.

Provides a formal means of discussing competency gaps and how to address

these – leading to more competent work force.

Helps build a climate of openness and trust.

Adds to a participative work culture.

Forms part of the legal process in addressing persistent poor performance.

Provides the basis for fair remuneration based on actual performance, so

employees can see and experience a clear link between their performance and
the rewards they receive.

Also provides systematic judgments to back up transfers, demotions or

terminations, in extreme cases.

BENEFITS TO EMPLOYEES:

An opportunity to get formal feedback from line managers on how their

performance is viewed – so that they can learn what they do well and what
needs to improve.

Ensures clarity regarding work expectations and standards, reducing anxiety /

stress and conflict with line managers.

An opportunity to discuss their job competencies (or lack thereof) – leading to

targeted training and development – helping them to realize their full potential.

Provides a forum to share new idea and to air views.

Can be used as a base for coaching and counselling the individual by the
superior.
14.Data Analysis and Interpretation

1. Are you aware about the organization performance appraisal system?

a) Yes b) No

OPINION NO. OF RESPONDENTS PERCENTAGE

YES 50 100
NO 0 0
TOTAL 50 100

YES
NO

YES
NO
 From the above it is evident that 100% of the employees feel that performance appraisal
is quit essential for any organization.

2. Do you think that performance appraisal is essential?

a) YES b) NO

OPINION NO.OF RESPONDENTS PERCENTAGE

YES 48 96

NO 2 4

TOTAL 50 100

YES
NO

From the above data it is evident that 96% of the respondents feel that performance
appraisal is very essential in the organization, where as 45 employees feel it is not
essential in organization.
3. Does appraisal system of your organization facilities career growth & learning?

a) YES b) NO

OPINION NO.OF RESPONDENT PERCENTAGE

YES 42 84

NO 8 16

TOTAL 50 100

YES
NO

From the above data it shows that 84% of employees feel that organization facilitate growth &
learning due to performance appraisal, where as 16% of employees feel that organization does
not provides growth & learning of employees.
4. Performance appraisal system really assesses the quality of an employee.
Do you agree?

a) YES b) NO

OPINION NO.OF RESPONDENTS PERCENTAGE

YES 46 92
NO 4 8
TOTAL 50 100

YES
NO

From the above data it is evident that 92% of the employees feel that the performance appraisal
system really assesses the quality of an employee, where as 85 feel that it does not assesses the
quality of an employee.
5. Periodicity of performance appraisal should be on

a) Quarterly basis b) Half-yearly basis c) Annual basis

OPINION NO.OF RESPONNDENTS PERCENTAGE

A 8 16

B 12 24
C 30 60
TOTAL 50 100

A
B
C
 A
B
C

From the above data it is evident that 60%of the employees feel that performance appraisal
should be done on annual basis & 24% of the employees feel should be in done on half
yearly basis 165 of the employees feel should be done in quarterly basis.

6. The present performance appraisal of your organization distinguishes the performers &
non performers?

a) Strongly agree b) Agree

c) Disagree d) Strongly disagree

OPINION NO.OF RESPONDENTS PERCENTAGE

A 5 10

B 37 74

C 8 16

D 0 0

TOTAL 50 100
 A
B
C
D

From the above data it is evident that 74% of the employees ‘agree’ that performance appraisal
system of the organization distinguishes performs & non performers, where as 105 strongly
agree and 16% disagree doesn’t distinguishes performers & non-performers.

7. The periodical performance appraisal of employee is required for maintaining efficiency

of individual 7 organizations?

a) YES b) NO

OPINION NO.OF RESPONDENTS PERCENTAGE

YES 48 96

NO 2 4

TOTAL 50 100
 YES
NO

From the above it shows that 96% of the employees feel that periodic performance appraisal of
the employee is required for maintaining efficiency of individual and organization and above
4% of the employees feel that it is not required to maintained.

8. Are you aware of the basis or attributes on which your performance is appraised?

a) YES b) NO

OPINION NO.OF RESPONDENTS PERCENTAGE

YES 41 82
NO 9 16

TOTAL 50 100
 YES
NO

From them above data it shows that 82% of the employees are aware on which their
performance is appraised but 16% of the respondents feel that they are not aware of the basis
on which their performance is appraised.

9. Performance appraisal is based upon

a) Seniority b) Performance

c) Recommendations & Trade Union influence d) Both a & b

OPINION NO.OF RESPONDENTS PERCENTAGE

A 2 4

B 27 54
 C 3 6

D 18 36

TOTAL 50 100

A
B
C
D

From the above data it shows that 54% of the employees feel that performance appraisal in
railways is based upon performance 36% feel that it based on both performance and
recommendation 7 trade union.

10. Performance appraisal is useful to the contributor to encourage people to perform better
on their jobs?

a) YES b) NO

OPINION NO.OF RESPONDENTS PERCENTAGE

YES 46 92

NO 4 8

TOTAL 50 100
 YES
NO

From the above data it shows that 92%of the employees feel that performance appraisal is
contributor to encourage better job, but 8% of the employees feel that it is not a contributor for
job.

11. The appraisal system is helping each employee to discover his/her potential & make their
short comings?

a) Agree b) Disagree c) Strongly Agree d) Strongly Disagree

OPINION NO.OF RESPONDENTS PERCENTAGE

A 38 76

B 6 12
 C 5 10

D 1 2

TOTAL 50 100

A
B
C
D

From the above data it shows that 76% of the employees feel that appraisal system discovers
potential and make their short comings and 125 employees feel that it does not discover
potential.

12. The present performance appraisal of your organization assesses individual behavior,
discipline, integration, communication skill, leadership qualities & growth?

a) Agree b) Disagree c) Strongly Agree d) Strongly Disagree

OPINION NO.OF RESPONDENTS PERCENTAGE

A 39 78

C 5 19

C 4 8
 D 2 4

TOTAL 50 100

A
B
C
D

From the above data it shows that 78% of the employees agrees with the above statement and
10% disagree.

13. How do you want tour performance to be communicated to you?

a) Written Form b) Oral Form c) Open Communication d) No Need

OPINION NO.OF RESPONDENTS PERCENTAGE

A 30 60

B 10 20

C 4 8
 D 6 12

TOTAL 50 100

A
B
C
D

From the above data it is evident that most of the employees feel that their performance should
be communicated to them in a written form.

14. What kind of counseling should occur in an organization?

a) Formal b) Informal

OIPINION NO.OF RESPONDENTS PERCENTAGE

YES 29 58

NO 21 42

TOTAL 50 100
 YES
NO

From the above data it’s evident that 58% feel of the employees feel that counseling in an
organization should be of formal kind and 42% of employees feel counseling should of informal
kind.

15. According to you, Counseling is a

a) Formality b) Identifies Strength & Weakness of the employee

c) To know the areas of need for development

OPINION NO.OF RESPONDENTS PERCENTAGE

A 12 24

B 10 20

C 28 56
 TOTAL 50 100

A
B
C

From the above data it’s evident that 56% of the employees feel that counseling is used to know
the areas of development and 245 feel that it is just a formality and 20% feel that it identifies
the strength & weakness of the employees.

16. How often did you speak, or discuss about your performance with your superiors?

a) Frequently b) Sometimes c) Rarely d) Never

OPINION NO.OF RESPONDENTS PERCENTAGE

A 16 32

B 19 38

C 9 18
 D 6 12

TOTAL 50 100

a
b
c
d

From the above data it’s evident that 38% of the employees said that they sometimes and 32%
frequently speak with their superiors about performance.

17. Training & development programs improve the quality of the employees?

a) Agree b) Disagree c) Strongly agree d) Strongly disagree

OPINION NO.OF RESPONDENTS PERCENTAGE

A 25 50

B 0 0

C 25 50
 D 0 0

TOTAL 50 100

Agree
Disagree
Strongly Agree
Strongly Disagree

From the above data it’s evident that 50% of the employees are strongly agree and 50% agree
that training & development the quality of the employees in the organization.

18. Has your performance increased as a result of performance ap[praisal system.?

a) To a large extent b) Moderate extent

c) Less extent d) Not at all

OPINION NO.OF RESPONDENTS PERCENTAGE

A 16 32
 B 32 64

C 1 2

D 1 2

TOTAL 50 100

Large extent
Moderate extent
Less extent
Not at all

From the above data it’s evident that 64% of the employees are feel that to moderate extent
and 32% to large extent think that performance increased as a result of performance appraisal
system.

15.Findings
It has been found that most of the employees think that the performance appraisal is
essential and they think it is used as a tool to improve performance, to determine
organization needs, and to basis for pay increase, promotions, and transfer.

The appraisal system facilitates growth & learning of employees and it is used to
distinguish performers.

The existing appraisal system helps the management to identify potentiality of

employees as well as useful for maintaining efficiency of the individual & organization.
 Some employees that they do not know which basis their performance is appraised and
most of the employees feel that it help them discover their potential and enables to
know their short coming.

Organization provides training & development programs to overcome the short comings
identified in performance appraisal.

The employees that their promotions match their contributions and new performance
appraisal technique should be adopted in the organization and the short comings are
informed to them.

The performance appraisal supports to experiment with new ideas as basis for
promotion.

Presence of a firmly implemented career plan- good sense of growth.

High proportion of routine work- during training and immediately after.

Organization climate-

Well analyzed goals are set.

Good and effective performance appraisal strategies applied.
All the strategies are fair and objective.
The employees are well aware of what is expected of them.
Proper feedback is not given to the management cadre staff.
Suggestions and innovations are not rewarded.
Supervisors are patient with the employees’ problems.
Good performance leads to annual increments and promotions.
Training and development programs are not very effective and helpful.
The purpose of Performance Appraisal System followed in the company is fulfilled.

16.Suggestion

The performance appraisal system should facilitate career growth & learning of
employees.

The short coming of employees should be informed to them after performance

appraisal.

Promotion should be based on performance rather than seniority or any other factors.

Performance appraisal should be appraised by granting awards/ merit certificate.

New performance appraisal techniques such as 360 degree performance appraisal
system should be used.

The performance appraisal should not be assessed by biased mind and personal grudge.

Feedback should not be given to the employees more frequently.

On what basis performance appraisal should be informed to the employees.

The extent of communication with the top & middle level management.

The feedback to performance appraisal shouldn’t only be given to those employees who
are rated ‘below average’ but also to all the employees as is would motivate the
employees to perform even better.

Gauge the potential for performance of each employee.

Extensive of the job training.

Free hand in decision making.

Focused job responsibility.

Transparent career planning of all officers.

Give tangible advantages.

Exemplary rewards should be given for unique achievements of the employees.

Informal were calling as and when they need.

Giving chance in decision making.

Reward for employee work.

Proper interactions with seniors.

Effective training and development programs should be held.

Proper feedback should be given to the management cadre staff at fixed time periods.

Suggestions and innovations should be encouraged.

Performance appraisal system should be extensively used in job rotation.

Up gradation of basic qualification of all workers to be taken in future based on their

performance.

Improve competency of the workers.

The company should concentrate more on individual development.

17.CONCLUSION

What makes some businesses more successful than others? What is today’s key competitive
advantage? The answer is people. Organisation with motivated and talented employees
offering outstanding service to customers are likely to pull ahead of the competition, even if
the products offered are similar to those offered by the competitors. Customers want to get
the right answer at the right time and they want to receive their products or services
promptly and accurately. Only people can make these things happen. Only people can
produce a sustainable competitive advantage. And, performance management systems are
the key tools to transform people’s talent and motivation into a strategic business
advantage.
 Performance management is continuous process of identifying, measuring and developing
the performance of individuals and team and aligning performance with the strategic goals
of the organization. Performance management is critical to small and large organisation, for
profit and not for profit, domestic and global, and to all industries.

Unfortunately, however, if they have a performance management, few organization use

their existing performance management system in productive ways. Performance
management is usually vilified as an “HR Department requirement”.

In this case analysis we tried to discuss the advantage of implementing a successful

performance appraisal system as well as the negative outcomes associated with deficient
system. It also includes a description of employee developmental plans’& the advantages of
using 360-degree appraisal system.

18.Webliography

Google.com
Management paradise.com
19.Bibliography
Procedures and Standards, DUTEST Industrial EST, Bin Dasmal Group
Manage the Project – DUTEST Industrial EST, Bin Dasmal Group Project Manager Hand
Book
APPENDICES

THE CHAIRMAN’S MESSAGE OF BIN DASMAL GROUP

Quality Products - Dedicated Staff - Expert Services

Welcome to the Bin Dasmal Group

Based in Dubai, we have been conducting business globally since 1976 and are dedicated to
providing quality products and expert services at competitive prices. The Group is based on the
principle of diversity in a manageable environment. Our companies are involved in construction,
auto parts, material handling, information technology, air conditioning, retail and general
trading.

Our links with public and private sector organisations in the United States and Europe are the
key to our past and future success. We have been instrumental in introducing a range of
products and services to the Region. We represent several US and European brands in this
Region, which has helped us to form a partnership with our overseas colleagues who now
recognize the necessity for building up a Regional base in Dubai . Our goal is to become one of
the leading groups in this Region, known for its best practice culture.

Our links with public and private sector organisations in the United States and Europe are the
key to our past and future success. We have been instrumental in introducing a range of
products and services to the Region. We represent several US and European brands in this
Region, which has helped us to form a partnership with our overseas colleagues who now
recognize the necessity for building up a Regional base in Dubai. Our goal is to become one of
the leading groups in this Region, known for its best practice culture.

The Bin Dasmal Group is pioneers in establishing the business environment in Dubai. We have
always strived for an immaculate level of service and this has become one of our enduring
characteristics. This is because the emphasis here is always on quality and progressive
management.

We are pleased that you have expressed an interest in the Bin Dasmal Group and would like you
to learn more about our company by exploring our web site.