CHAPTER-I
INTRODUCTION
1.1 INTRODUCTION OF PERFORMANCE APPRAISAL
1
Every year employees experience an evaluation of their past performance. Employees generally see these evaluations as having some direct effect on their work lives. They may result in increased pay, a promotion, or assistance in personal development areas for which the employee needs some training. As a result, any evaluation of employee’s work can create an emotionally charged event. Because the performance evaluation is not the simple process it once was, it is now more critical to perform one while simultaneously focusing on key activities of the job. If we want to know how well the employees are doing, we’ve got to measure their performance-not necessarily an easy task. Many factors go into the performance evaluation process, such as why do we do them, who should benefit from the evaluation, what type of evaluation should be used, and what problems might be encountered. Performance management systems involve a number of activities. They are more than simply reviewing what an employee has done. These systems must fulfill several purposes. 1.2 Purpose of performance management systems Nearly three decades ago, performance evaluations were designed primarily to tell employees how they had done over a period of time and to let them know what pay raise them would be getting. This was the “feedback” mechanism in place. Although this may have served its purpose then, today there are additional factors that must be addressed. Specifically, performance evaluations should also address development and documentation concerns. Performance appraisal must convey to employees how well they have performed on established goals. It’s also desirable to have these goals and performance measures mutually set between the employee and the supervisor. Without proper two-way feedback about one’s own effort and its effect on performance, we run the risk of decreasing an employee’s motivation. However, equally important to feedback is the issue of development. Development, it is referred to those areas in which an employee has a deficiency or weakness, or an area that simply could be better if some effort was 2
expended to enhance performance. Documentation is used as a record of the performance appraisal process outcomes. A performance evaluation systole is remiss if it did not concern itself with the legal aspects of employee performance. Purpose of Performance Appraisal
1. To create and maintain a satisfactory level of performance. 2. To contribute to the employee growth and development through training, self and management development programs. 3. To help the superiors to have a proper understanding about their subordinates. 4. To guide the job changes with the help to continuous ranking. 5. To facilitate fair and equitable compensation based on performance. 6. To provide information for making decisions regarding lay off, retrenchment etc. 7. To ensure organizational effectiveness through correcting employee for standard and employee performance.
1.3 PROFILE OF THE COMPANY
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Narangs International Hotels Ltd. Hotel Ambassador Pallava Narangs International Hotels Ltd. is India's largest privately owned hotelier, flight catering and fast food catering company. It owns three hotels and two flight kitchens and several fast food outlets. The Ambassador Group of Hotels today occupies a unique niche in the deluxe hotels with meeting facilities and special services for the business traveler and tourists. Every Ambassador Hotel is designed to make your visit work, to help you accomplish the most in your time with us, whether it is a sightseeing tour or business talks. It gives you the assistance beyond the facilities and amenities that are taken as 'standard'. The Ambassador Group also has the largest Flight Catering Unit in South East Asia; equipped with modern equipments, located at Mumbai and catering to several prestigious airlines. It has another Flight Catering unit in Delhi as well. It also has a revolving restaurant at Mumbai Hotel. To capitalize on infrastructure and the unique cuisine available at the Flight Catering unit of Mumbai, Croissants etc., a chain of largest fast food outlets was established. Now, it boasts of several fast food outlets all over the city of Mumbai. As a major diversification launch and to show growing concern towards environment, The Narangs ventured into harnessing wind for generating electric power through 25 wind electric generator units installed in the state of TamilNadu.
Today, Ambassador Hotels have a reputation not only for their physical distinctiveness, incorporating local art and design, but also for the amenities 4
and services it provides. Settings of First Class elegance with thorough attention to pleasures like renowned cuisines as well as practicalities and business facilities. Friendly and Informal yet totally professional. The Ambassador group is one of the fastest growing and dynamic organization intent on providing the best possible service and becoming the best in the field. Ambassador Pallava in Brief… Ambassador Pallava - a hotel with opulence, is conveniently located in the heart of Chennai, close to the city's most prestigious shopping and business quarter. Set in an attractive atmosphere they offer a relaxing retreat harmoniously adorned with the tradition and culture. It is a hotel with the flawless combination of fine service and international style all set in together to create the perfect mood for the perfect traveler. The personalized service and luxurious accommodations, along with its contemporary elegance, provide the ultimate setting for distinguished tastes. It provides 100 comfortable guest rooms and suites, including single rooms, double rooms, executive and luxurious suites all equipped with modern facilities. The hotel's elegantly furnished Presidential suite is the height of luxury and has hosted many special guests and business elites. Our chefs create one-of-a-kind dishes from the freshest, most delectable ingredients for relaxed dining until sunset, each in their own distinct style amid stunning decor. With banqueting halls customized to suit all events, this is the ideal venue to host parties, and meetings. Our staff are all set ready to assist with all your needs, and a dedicated business center is also available for the convenience of meeting delegates and business travelers. HOTEL FACTS: ADDRESS
: No.30, Montieth Road, 5
Egmore, Chennai – 600008. TELEPHONE NO : 044-28554476 FAX NUMBER
: 044-28554492
E-MAIL
:
[email protected]
WEB SITE
: www.ambassadorindia.com
STAR CLASSIFICATION: 4 STAR OTHER CERTIFICATION: ISO 22000 OUR CREDO We believe our first responsibility is towards customers who use our products and services I.e., the highest quality Food & Beverage along with attractive and tasteful rooms. Customer Satisfaction levels must be high with their needs to be serviced promptly and accurately. We believe in intelligent, interested and informed employees who will complement the services we strive to provide. We are responsible for our employees, everyone must be considered as an individual. They must have a sense of security in their jobs. Compensation must be fair and adequate and working conditions clean, orderly and safe. Employees must feel free to make suggestions and complaints. We must provide competent management and their actions must be just and ethical. Business must make a sound profit. Constant up gradation must be carried on. Technology must be brought in. Reserves must be created to provide for adverse times. When we operate according to these principles, the organization should realize a fair return. ISO 22000 POLICY IN AMBASSADOR PALLAVA
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We at Hotel Ambassador Pallava strive to ensure food safety to our guests by Using Quality Raw materials, by following good manufacturing Practice& Hygienic Service through our trained staff complying with all legal requirements. OBJECTIVES •
ZERO DEVIATION IN CCP
•
NO
PRODUCT
WITHOUT
LOCAL
LICENCE
TO
BE
PURCHASED ON OR BEFORE AUGUST 2012 •
ZERO RODENTS IN FOOD HANDLING AREAS
• MINIMUM 1-HOUR TRAINING CLASS FOR ALLTHE FOOD HANDLERS. 7 PILLAR OF TOURISM: • SWAGAT
- WELCOME
• SOOCHANA
- INFORMATION
• SUVIDHA
- FACILITATION
• SURAKSHA
- SAFETY
• SUHYOG
- COOPERATION
• SAMRACHANAM
- INFRASTRUCTURE
• SAFAI
- CLEANLINESS
SAFE & HONOURABLE TOURISM OBJECTIVES;7
• Encourage tourism activities to be undertaken with respect for basic rights like dignity, safety and freedom from exploitation of both tourists and local residents. • Aid the prevention of prostitution, sex tourism and forms of sexual exploitations. •
To enhance prevention of activities like forced or involuntary drug use, manipulated and incorrect information, cultural and social intolerance which could increase vulnerability or crime. STAFF BENEFITS: • Appointment order policy • Distribution of salary • Leave period / Deduction / Holidays benefits • Cafeteria / medical / benefits • Uniform / Name badge • PF / ESI benefits • Carrying mobile phones at work • Personal records • Change of address • Outside business activity • Hours of work / Shift / attendance
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(“Coming to work on time is duty, Completing the assigned work after duty hours is your responsibility”) • Notice period • Staff locker room • Security physical search • Employee excellence program • Emergency preparedness • Theft procedure GROOMING FOR WOMEN • Uniform to be changed everyday • Hair longer than jaw line to be tied neatly into a bun & a plain black net to be tied around the same • No ‘Fringe Hairstyles’ will be permitted • Only black bands / pins / clips • Ear - rings - Half inch or studs - if two, small ones to be used which is near to invisible i.e. not exceeding 0.2 cm. dia • Accessories - One ring only on each hand Watch - One. Bracelet Or Bangle • Simple plain chain with small pendent - No beads / pearls • Dry or fly - away hair to be gelled or sprayed
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• Only while nail polish and lipstick either pink or maroon red. Brush on & black eye - liners only • Nails to be properly shaped & not like claws with nail polish while on duty. No chipped nail polish GROOMING FOR MEN • Uniform to be changed everyday • Shoes to be polished everyday • Plain black shoes as per standard • Nails to be absolutely clean and short • Only wedding bands are permitted • Proper deodorant to be used - to cut off body odor • Name tags to be worn while on duty. • No. ear - rings allowed • Hair to be short and neat and should not touch the collar or ears • Shaving to be done every day without fail • Moustache to be trimmed properly and above lips • Side burns should not be shorter than the top of the ear and not longer than the bottom on the ear lobe
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HYGIENE Ambassador pallava hotels prepare food under hygiene conditions and renders services as per the requirements ensuring quality with minimal prescribed production. VISION STATEMENT To be a leading player in Integrated facilities to build a fast growing efficient and a world class service company utilizing the local advantage to become the market leader in providing quality services for the Corporate and Individuals. MISSION STATEMENT To create a special niche in the hospitality segment so that our Customers utilize the services by experiencing the differences. CORPORATE VALUES PROFESSIONALISM RESPONSIBILITY SERVICE EXCELLENCE CUSTOMER SATISFACTION COMPANY It is a private limited company. WORK FORCE In Ambassador pallava Hotels 225 employees are working. 11
REVIEW OF LITURATURE:
Introduction Once the employee has been selected trained and motivated he is then appraised to his performance. Performance appraisal is the step where the management will find and put effective at hiring and placing employees.
Definition “A performance appraisal is a process of evaluating an employee’s performance of a job in terms of its requirements” –water Dill Scott.
Heyel observe “it is the
process of evaluating the performance and qualification of the employees in terms of requirements of the job of which he is employed for purpose of administration including placement selection for promotions, providing financial rewards and other actions which require difference treatment among the members of group as distinguished from actions affecting all members equally”. Others regard it is a process of estimating or judging the value. Excellence, qualities or status of some object persons or thing, individually and collectively. It is a part of all the other staffing process viz. recruitment, selection, placement and indoctrination. Employee appraisal technique is said to have been used for the first time during the first world war when at the distance of water Dill Scott ,the U.S. army adopted the man –to-man rating system for evaluating military personnel during the 1920-30 period relational wage structure for hourly paid worker for adopted in industrial under this system this policy at giving grade wage increments on the basis at merit was accepted .There early employees plans were called merit rating programs which continued to be so called up to the 1950 .
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Every year employees experience an evaluation of their past performance. Employees generally see these evaluations as having some direct effect on their work lives. They may result in increased pay, a promotion, or assistance in personal development areas for which the employee needs some training. As a result, any evaluation of employee’s work can create an emotionally charged event. Because the performance evaluation is not the simple process it once was, it is now more critical to perform one while simultaneously focusing on key activities of the job. If we want to know how well the employees are doing, we’ve got to measure their performance-not necessarily an easy task. Many factors go into the performance evaluation process, such as why do we do them, who should benefit from the evaluation, what type of evaluation should be used, and what problems might be encountered. Performance management systems involve a number of activities. They are more than simply reviewing what an employee has done. These systems must fulfill several purposes.
Purpose of performance management systems Nearly three decades ago, performance evaluations were designed primarily to tell employees how they had done over a period of time and to let them know what pay raise them would be getting. This was the “feedback” mechanism in place. Although this may have served its purpose then, today there are additional factors that must be addressed. Specifically, performance evaluations should also address development and documentation concerns. Performance appraisal must convey to employees how well they have performed on established goals. It’s also desirable to have these goals and performance measures mutually set between the employee and the supervisor. Without proper two-way feedback about one’s own effort and its effect on performance, we run the risk of decreasing an 13
employee’s motivation. However, equally important to feedback is the issue of development. Development, it is referred to those areas in which an employee has a deficiency or weakness, or an area that simply could be better if some effort was expended to enhance performance. Documentation is used as a record of the performance appraisal process outcomes. A performance evaluation system would be remiss if it did not concern itself with the legal aspects of employee performance. PERFORMANCE APPRAISAL AND EEO Performance appraisal is the integral part of most of the organizations. Properly developed and implemented, the performance appraisal process can help an organization achieve its goals by developing productive employees. Although there are many types of performance evaluation systems, each with its own advantages and disadvantages, we must be aware of the legal implications that arise. EEO laws require organizations to have HRM practices that are bias free. For HRM, this means that performance evaluation must be objective and job related. That is, they must be reliable and valid! Furthermore, performance appraisals must be able to measure “responsible” performance success. To assist these matters, two factors arise 1. The performance appraisal must be conducted according to some established intervals and 2. Appraisers must be trained in the process.
The reasons for these become crystal clear when you consider that any employee action, like a promotion or termination, must be based on valued data-data prescribed from the performance evaluation document. These objective data often support the legitimacy of employee action.
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OVERVIEW OF PERFORMANCE MANAGEMENT Performance management is the systematic process by which an agency involves employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals. Employee’s performance management includes
PLANNING PLANNING
MONITORING MONITORING
REWARDING REWARDING
DEVELOPING DEVELOPING
RATING RATING
1. Planning work and setting expectations. 2. Continually monitoring performance. 3. Developing the capacity to perform effectively. 4. Periodically rating performance. 5. Rewarding good performance. 15
Planning In an effective organization, work is planned out in advance. Planning means setting performance expectations and goals for groups and individuals to channel their efforts towards achieve organizational objectives. Getting employees involved in the planning process will make them understand the goals of the organization. Performance elements should be measurable, understandable, verifiable, equitable and achievable. Monitoring In an effective organization, assignments and projects are monitored continually. Monitoring well means consistently measuring performance, providing ongoing feedback to employees and work groups on the progress towards reaching their goals. Regulatory requirements for the monitoring performance include continuous progress reviews with the employees. Ongoing monitoring provides opportunity to check how well employees are meeting predetermined standards and to make changes to unrealistic or problematic standards by monitoring continually, unacceptable performance can be identified any time during the appraisal period.
Developing In an effective organization, employee development needs are addressed. Developing in this instance means increasing the performance through training, giving assignments that introduce new higher levels of responsibility, improving work processes. Providing employees with training and developmental opportunities encourages good
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performance, strengthens job-related skills and competencies, and helps employees keep up with changes in the environment such as the introduction of new technology. Carrying out the processes of the performance management provide excellent opportunity to identify developmental needs. Rating From time to time, organizations find it useful to summarize employee performance. This can be helpful for looking at and comparing performance among various employees. Rating of performance appraisal means evaluating employee or group performance against the standards in an employee’s performance plan and assigning a suitable rating of record. The rating of record is assigned according to process included in the organization’s appraisal program. It is based on what has been performed during an entire appraisal period. Rewarding In an effective organization, rewards are used well. Rewarding means recognizing employees, individually and as members of groups, from performance and acknowledging their contributions to the agency. A basic principal of effective management is that all behavior is considered by its consequences. Those consequences can and should be both formal and informal and both positive and negative. Good performance is recognized without waiting for nominations and awards are solicited. Recognition is an ongoing, natural part of experience. None of awards regulation provides a broad range of forms that more formal rewards can take, such as cash, time off and many non-monitory forms. OBJECTIVES 1. To prevent grievances 2. To improve job performance 3. To increase analytical abilities of supervisors 4. To assist management in promotion demotion and transfer problems 5. To reveal areas where training is needed 17
6. To control employee behavior by using it as an instrument for rewards punishments and threats 7. To place people to do the right kind of jobs
8. To create and maintain a satisfactory level of performance. 9. To contribute to the employee growth and development through training, self and management development programs.
10. To help the superiors to have a proper understanding about their subordinates. 11. To guide the job changes with the help to continuous ranking. 12. To facilitate fair and equitable compensation based on performance. 13. To provide information for making decisions regarding lay off, retrenchment etc. 14. To ensure organizational effectiveness through correcting employee for standard and employee performance. The objectives of performance appraisal could be described as 1. judgmental 2. developmental Judgmental objectives focus on
1. providing feedback to employees to know where they stand 2. developing valid data for administrative decisions concerning placement, pay, promotion, punishment etc Developmental objectives focus on 1. Diagnosing individual and organizational strengths and weaknesses (SWOT analysis) 2. Counseling, coaching, career and succession planning, employee morale and motivation 3. Developing positive superior-subordinate relationship. BENEFITS OF APPRAISAL Benefits Of Individual 18
Gaining a better understanding of their role
Understanding more clearly how and where they fit within the wider picture
A better understanding of how performance is assessed and monitored
Getting an insight into how their performance is perceived
Improving understanding of their strengths and weaknesses and developmental needs
Identifying ways in which they can improve performance
Providing an opportunity to discuss and clarify developmental and training needs
Understanding and agreeing their objectives for the next year
An opportunity to discus career direction and prospects
Benefits of line manager/ supervisor/ team leader
Opportunities to hear and exchange views and opinions away from the normal pressure of work
An opportunity to identify any potential difficulties or weaknesses
An improved understanding of the resources available
An opportunity to plan for and set objectives for the next period
An opportunity to think about and clarify their own role
An opportunity to plan for achieving improved performance
An opportunity to plan for future delegation and coaching
An opportunity to plan for motivate members of the team
Benefits of the organization
A structured means of identifying and assessing potential
Up-to-date information regarding the expectations and aspirations of employees
Information on which to base decision about promotion and motivation
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An opportunity to review suggestions planning
Information about training needs which can act as a bases for developing training plans
Updating of employee records (achievements, new competencies)
Carrier counseling
Communication of information
LIMITATIONS OF PERFORMANCE APPRAISAL RATER BIAS 1. Halo Effect ’Halo effect’ is the tendency to let the assessment of an individual’s one trait influence the evaluation of that person on other specific traits. 2. Central Tendency Extremely high or extremely low evaluations are avoided by assigning “average ratings”. 3. Similarity Error This error occurs when the appraiser perceives the employee as himself. “He is like me”. 4. Leniency Error Relative to the true or actual performance an individual exhibits, some evaluators mark high, while others mark low. The former is referred to leniency error. 5. Inflationary Pressures As “equality” values have grown in importance in our society, as well as fear of retribution from disgruntled employees who fail to achieve excellent appraisals, there has been a tendency for evaluation to be less rigorous and negative repercussions from the evaluation to be reduced by generally inflating or upgrading appraisals. 6. Inappropriate Substitutes
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It is difficult to get consensus on what is “a good”, and it is even more difficult to get agreement on what criteria will determine performance. As a result, the appraisal is frequently made by using substitutes for performance. Many of the times substitutes are chosen and give a good approximation. However, the substitutes chosen are not always appropriate. So, the appropriate substitute in one job may be inappropriate in another. 7. Constant Error Some appraisal tend to be lenient towards their subordinates and others tend to rate them too strictly. 8. First Impression Raters may identify some specific qualities and quickly form an overall impression which may not provide an adequate base for appraisal. 9. Regency Error The raters generally remember the recent actions at the time of rating and rate on the basis of these actions. 10. Personal Prejudice If the rater dislikes any employee he may rate him at the lower end and affect the career of that employee. 11. Opportunity Bias The amount of output is influenced by factors beyond the control of employee’s .hence there output may be greater than other’s working on identical task. 12. Concerned With Self Protection The rate is concerned with his own protection. “If I rate him well he will rate me well”. 13. Spillover Effect 21
This refers to allowing past performance to influence the evaluation of present performance
Factors that distort appraisals
INAPPROPRIATE SUBSTITUTES
INFLATIONARY SUBSTITUTES
LENIENCY ERROR
DISTORTIONS
CENTRAL TENDENCY
HALO ERROR
SIMILARITY ERROR
Components of Appraisal System As we have seen performance evaluation reasons. The personnel evolution system should address the questions who, what, when where how of performance appraisal. Who of Appraisal
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Usually the immediate supervisor must be entrusted whit the task of rating the assent because he is most familiar with his work supervisory rating are regarded as the best possible assessment and they are often considered as the “heart of the most appraisal system” Appraisal is also done by the staff specialist the personnel officers they may advice the supervisors while evaluating their subordinates stressing the need for evidence .Sometimes self evaluation is also employed evaluating performance .But this approach has his disadvantage individual may rate himself excessively. What of Appraisal Promote to understanding between supervisor and his subordinate Aiding in decision-making for promotion. Transfer, lay-off and discharges .So the appraisal is necessary. When of Appraisal In most of the organization employees or formally evaluated once of a year in other twice a year .New employees are rated more frequently than the older ones. The ideal thing is that employees should the rated three months and six months and every six months thereafter. Where of Appraisal The where indicates the location where an employee may be evaluated? It is usually done at the place of work of office of the supervisor. How of Appraisal Every organization must decide what different methods are available and which of these may be used for performance appraisal on the basis of comparative advantages and disadvantages it is decided which method would suit the best method. METHODS FOR APPRAISING PERFORMANCE 23
Generally speaking their approaches are used in making Performance appraisal. 1. Causal And Unsystematic Appraisal This method was commonly used .This method is used most if small scale industries only.
2. Traditional And Systematic Appraisal Employee characteristics and contribution are both .It is evaluates all the performance in same approach. So that the rating obtained of separate personnel are comparable. 3. Management By Objective It seek to minimize external control and maximize internal motivation through joint goal setting between the managers and the subordinates and increase the subordinates own –control of his work.
Systematic Appraisal Methods 1. Straight Ranking Method It is the oldest and simplest method of performance appraisal by which remain and his performance are considered as an entity by the rater. No attempt is made to functionalize the rate or his performance. The “ workman” is compared with the “whole man “ that is the ranking of man in a work group is done against that one of another .But this greatest limitation of this method used for paired comparison techniques .As per the technique every employee to compare a single individuals is difficult when a large number of persons are rated.
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02. Paired Comparison Technique This is technique was used by the U.S.A. Army during the First World War. By this method certain factors are selected for the purpose of analysis such as leadership, dependability, initiative and a scale is designed rates for each factor. In other words comparing “whole man” to “whole men” personnel are compared to the key man in respect of one factor at a time. This method in a job evaluation and is known as the factor comparison method.
03. Grading Method Under this system that rater considers certain features and marks them according to a scale. A = Outstanding B = Very good C = Good or Average D = Fair E = Poor The selected may be analytical ability co-oppressiveness, dependability, Self-expression, Job knowledge, Judgment, Leadership and organizing ability. The Actual performance at employees is then compared with these grade definitions and he is allocated the grade which describes his performance.
04. Graphic Rating Scale
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This is the most commonly used method of performance appraisal. Under it, a printed from person to be rated. In this method initiatives, attitude, leadership, quality of work, regularity of attendance towards supervisors and associated versatile.
0
5
10
15
0
No interest in work
5
Carelessness
10
Interested in work
15
Enthusiastic about job and fellow workers
20
Enthusiastic opinion and advises
05
20
25
Check Lists Method Under this method does not evaluate employee performance he supplies reports it
and the final rating is done by the personnel dept. a series of questions are presented concerning employee to his behavior. The rater then checks to indicate if the answer to the question about an employee is yes or no.
06. Forced Choice Description Method Under this method rating elements are several sets of paid phrases adjectives relating to job proficiency or personnel qualification. The method has certain such as 26
while choosing statements from each series. The rates are unable to introduce personnel bias on hallo effect as only one of the favorable phrases in each series is related to success of failure on the job. 07. Selection of Critical Incidents The method was developed and conducted by the armed forces in the
United
States during World War –2. The essence of this system is that if attempt to measure workers performance in terms of certain events or episodes that occur in the performance of the rates job. These events are known as critical incidents. The supervisor keeps a written record of the events that can easily be recalled and used in the courses of a periodical or formal appraisal. Feedback is revived about the incident during performance review session. These critical incident methods are discovered after a thorough study of the personnel working on a job. The collected incidents are than tanked in an order of frequency and importance. “The approach reduces the regency of most performance ratings.” 08. Free Essay Method Under this method the supervisor makes a freed from open-ended Appraisal of an employee in his own words and puts down his impression about the employee. There are several advantages of this method. An easy can provide a good deal of information especially if the supervisors asked, for instance to give two or three examples of each judgment he makes. The explanation will give specific information about the employee and can reveal even more about the supervisors.
09. Group Appraisal Method Under this method employees are rated by an appraisal group, consulting of their supervisor and three or four other supervisors who have some knowledge of their 27
performance. The supervisor explains to the group the nature of subordinates duties. The group then discusses standards of performance for that job. The actual performance of job-holder and the causes of their particular level of performance and others suggestions for future improvement. 10. Field Review Method Under this method a trainer employee from the personnel department Interviews line supervisors to evaluate their respective subordinates. The appraiser is fully equipped with definite test questions. The supervisor is received to give his opinion about the progress of his subordinates. The level of the performance of the subordinate is his weaknesses. Good point outstanding ability, profitability and the possible plans of action in cases require further consideration. The questions are asked and answered verbally. The appraiser takes detailed notes of the answer placed in the employee’s personal folder. The success of this system is depends upon the competence of the interviewer. He keeps supervisor on his toes by this evaluation and minimizes bias and Prejudice on his part. This system is useful for a large organization. De-Merits Of Traditional Techniques Many of the above traditional performance evaluation techniques have Internal weakness. Managers generally are not qualified to assess personality traits and most managers are even not properly trained to conduct evaluation and performance interviews. They name very notions of the purpose of evaluations. Hence, they do a poor job. Modern Methods of Appraisal 01. Appraisal by results or MBO Peter Drucker has evolved this method. MBO is potentially a powerful philosophy of managing and an effective way for operational sing the evaluation process. It seeks to minimize through joint goal setting between the manager and the subordinate and increasing the subordinates own control of his work. 28
MBO can be described as a process whereby the superior and Subordinate managers of an organization jointly identify its common goals. The MBO is to change behavior and attitudes towards getting the job done. MBO PROCESS
Set Organization goals
Joint goal setting
Performance review
Set check posts
Feed back
02. Assessment centre method This concept was initially applied to military situations by Simony in the Germany army in the 1930’s and the war office selection board of the British army in the 1960’s. The purpose of this method was and is to test candidates in a asocial situations, using a number of assessors and a Varity of procedures. The most important feature of this method is job related simulations; 03. Human Asset Accounting Method This method refers to activities devoted to attaching money estimates to the value of firm’s internal human organization and its external customer goodwill. The current value of firms human organization can be appraised by developed. Procedures are undertaking periodic measurement of ‘key casual’ and ‘interviewing enterprise’ variables. 04. Behaviorally Anchored – Rating Scales This is new appraisal technique which has been recently developed its support claim that it provides better, more equitable appraisals as compared to other techniques. The procedure for BARS is usually five steps.
Generic critical incidents
Develop performance dimensions
Reallocate incidents
Scale of incidents 29
Develop final instrument
05. 360 Degree Appraisal Systems This is defined as the systematic collection and feedback of performance data on an individual or group, derived from a number of the stakeholders in their performance. It is done in a systematic way via questionnaires or interviews. This formalizes people judgment coming from natural interactions they have with each other. There is both collection and a feedback process.
Uses of 360 Degree Feedbacks
Self development and individual counseling
Part of organized training and development
Team building
Performance management
Strategic or organizational development.
Validation of training and other initiatives
Remuneration
Problems of Appraisal The ideal approach to performance evaluation is that in which the Evaluator is free from personal biases prejudices. This is because when an evaluation is objective, it minimizes the potential capricious and functional goals. However a single fool proof evaluation is not available. Inequality in evaluation often destroys the usefulness of the performance system-resulting inaccurate, invalid appraisals. There are many significant problems, these are:
The hallo effect
Leniency
The central tendency
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Similarity
Miscellaneous bias.
Why Appraisal Techniques Prove Failure Performance appraisal techniques have often failed to go a correct assessment of the employee. According to savable, the causes of such failures are the supervisor plays dual and conflicting role both the judge and the helper. Too many objectives often cause confusion the supervisor feels that subordinate appraisal is not rewarding considerable time gap exists between two appraisal programs. The skills required for daily administration and employee development are in conflict. Poor communication deeps employees in the dark what is expected of them. There is a difference of opinion between a supervisor and a subordinate, in regard to latter’s performance. How Appraisals May Be Made Successful The rater must be thoroughly well verses in the philosophy and nature of rating system. Factors and factor scales most thoroughly defined, analyzed and discussed the success of appraisal may be depends upon. The existence of an atmosphere of confidence trust, both supervisor and subordinates may discuss frankly and offer suggestions which may be beneficial for the organization and for improvement of the employees. The supervisor must very thoroughly evaluate the employee performance. The result of performance rather than traits should
be given weigh
Jointly plans for the future must be developed after consultation with subordinates. The individual as a person should never be criticized. The supervisor should try to analyze the strengths and weakness of an employee. Which particular technique is to be adopted for appraisal should be governed by such factors as the size. The results of the appraisal particularly when they are negative should be immediately communicated to the employees. So that they may try to improve their performance. ETHICS OF APPRAISAL
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Ethics of performance appraisal is an important factor. If it is ignored their arise several problems. These are some of the dos and don’ts 1. Don’t appraise without knowing why the appraisal is required. 2. Appraise on the basis of representative information. 3. Appraise on the basis of relevant information. 4. Appraise on the basis of sufficient information. 5. Be honest in your assessment in all the facts you obtain. 6. Don’t write one thing and say another. 7. Pass appraisal information only to those who have good reason to know it. 8. Don’t accept another’s appraisal without knowing the basis on which it was made. 9. In offering the appraisal, make it plain that this is only your opinion of facts as you see them. Approaches to Performance Appraisal Casual Approach This is an unsystematic system which has subsequently given place to more formal methods. It has been largely based on seniority or quantitative standards of output for rank and file employees. Traditional Approach This is highly systematic and takes employee characteristics and employee contribution as a measurement. In this system employee is rated in the same manner utilizing the same approach. Behavioral Approach This approach is based on the behavioral value of fundamental trust in the goodness, capability and responsibility of human beings. It lays emphasis on providing mutual goals settings and appraising of progress made by both the appraiser and appraise.
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1.5 NEED FOR THE STUDY Performance appraisal is needed in order to 1. provide information about the performance ranks on which decisions regarding salary ,fixation , conformation, promotion, transfer and demotion are taken 2. provide information which helps to council the subordinate 3. provide information for correct in placement ]
1.6 SCOPE OF THE STUDY The scope of the study has been confined to the employees of NARANGS INTERNATIONAL HOTELS LTD bulk activities. Our study includes
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performance appraisal all the employees of NARANGS INTERNATIONAL HOTELS LTD bulk activities to that include officers, executives and managers.
1.7 OBJECTIVES OF THE STUDY Perfect at Narangs International Hotels Ltd is essentially focused towards employee development. This means that the superior has to necessarily take a predominantly developer/coach role vis-à-vis the employee. This also implies that the focus is on performance improvements/growth and employee alignment with organization strategy and values and not merely on rewards and discrimination. A performance rating is an element but not the primary aim of the perfect process. 1. To conduct the survey in NARANGS INTERNATIONAL HOTELS LTD on performance appraisal 2. To understand the method for appraisal 3. To evaluate the appraisal systems and find out the limitations 4. To study various factors contributing to appraisal 34
5. To know the entire system of performance appraisal
CHAPTER-II
35
RESEARCH METHODOLOGY
2.1 RESEARCH DESIGN: A descriptive study is undertaken to analyze the performance appraisal program in NARANGS INTERNATIONAL HOTELS LTD in all levels. To collect the primary data i.e. questionnaire has been designed and it consists of 15 questions. The purpose the questionnaire is to understand
whether respondents
require any assistance in their interest event process data analysis by in depth study of organization operations data presentation through descriptive chapters
2.2 Sources of data collection The sources of data collected for this process includes both primary and secondary sources. 36
Primary data The data is collected from the employees through questionnaires. Secondary data The data sources consists both the internal and external data. Internal data was collected from the companies report and record. External data includes the published data such as books on H.R and websites.
Sampling techniques The type of sampling technique adopted in this project analysis is simple random sampling. Employees from various departments were approached and data was collected by administrating questionnaires to know their opinion about performance appraisal in their organization.
Sample size For a sample of 100 employees belonging to different functional departments were given questionnaire to know their opinion with regard to performance appraisal. Data analysis 37
The collected data is tabulated and then analyzed by using simple percentages and represented by different types of graphs.
LIMITATIONS 1. Time is the major constrain as the study is limited to 50 days 2. Being the time is limited to cover all the areas in NARANGS INTERNATIONAL HOTELS LTD 3. As the universe is vast it is a constraint to the study 4. Time is not sufficient for the study of such big organization
CHAPTER-III
DATA ANALYSIS 38
AND INTERPRETATION
DATA ANALYSIS AND INTERPRETATIONS 1. From how many years are you working in this organization? A NO.OF.RESPONDENTS 12 PERCENTAGE 12
B 22 22
39
C 22 22
D 26 26
E 18 18
INTERPRETATION From the above it can be interpreted that, 12 of the employee’s are working between 0-2 yrs, 22% between 2-5 yrs, 22% are working between 5-8yrs, 26 between 8-10 yrs and 12% of the respondents are working from more than 10 yrs.
2. How do you feel about the format of Perfect in your organization? A NO.OF.RESPONDENTS 20 PERCENTAGE 20
B 56 56
40
C 20 20
D 4 4
E NIL 0
INTERPRETATION From the above graph it can be interpreted that 20% of employees feel that the format of perfect is very good, 56% feel it good, 20% feel that it is average, 7.5% fell that it is not bad and none of them is totally dissatisfied with the format of perfect in the organization.
3. Will your superior spend reasonable time dialoguing with
you and take active part in enhancing your performance?
NO.OF.RESPONDENTS PERCENTAGE
A 30 75
B 10 25
INTERPRETATION 41
From the above analysis it is clear that 75% of the employees rated that their superiors spend reasonable time dialoguing with them in enhancing their performance and 25% of the employees disagree for the above. In the above graph 1 represents yes and 2 represents no.
4. Do you think half-yearly review is necessary? NO.OF.RESPONDENTS PERCENTAGE
A 80 80
B 20 20
INTERPRETATION The above question is posed to the employees to know whether the halfyearly review is necessary or not. From the above analysis 80% rated that it is required and 20% rated that there is no need for conducting the half-yearly review. 42
1 in the graph represents the employees who require half-yearly review and 2 represents who do not need it.
5. If yes, in what way it is helpful to you? A NO.OF.RESPONDENTS 15 PERCENTAGE 15
B 15 15
C 6 6
D 22 22
E 42 42
INTERPRETATION The above graph is the continuation of the 4 th question. This gives the analysis of the employees who require half-yearly review to say in what way it is helpful to them. The analysis say that 15% of the employees says that it helps in making the corrections that are required and also the feedback can be received 43
periodically, 6% feel problems can be solved more easily 22% feel that communication between superior and subordinate can be increased and 42% says that all the above helps in conducting the half-yearly review.
6. Do you think both behavioral and functional aspects are considered at the time of rating? A NO.OF.RESPONDENTS 50 PERCENTAGE 50
B 2 2
C 14 14
D 4 4
E 30 30
INTERPRETATION From the above graph it can be interpreted that 50% of the employees feel that both behavioral and functional aspects are taken into consideration at the time of rating, 2% rated that both behavioral and functional aspects are not taken into consideration, 14% rated that only behavioral aspects are taken into consideration, 4% rated that functional and other aspects are also taken into consideration. 44
7. Does your superior give you continuous feedback regarding your Performance? A NO.OF.RESPONDENTS 32 PERCENTAGE 32
B 15 15
C 20 20
D 15 15
E 18 18
INTERPRETATION The above pie chart represents the analysis made on the continuous feedback regarding the employee’s performance. This give the information that 32% are given monthly feedback, 15% rated quarterly feedback has been given, 20% rated that they are given half-yearly feedback, 15% rated they got annual
45
feedback and 18% rated that they have not been given any feedback. Thus most of the respondents rated that monthly feedback is been given to them.
8. How would you rate your own skills? A
B
C
D
E
NO.OF.RESPONDENTS 16
14
8
7
55
PERCENTAGE
14
8
7
55
16
INTERPRETATION The above pie chart represents the question regarding rating of employees own skills. It gives the analysis that 16
% rated that they rate their own skills on
the basis of work allotted to them, 14% rated on the basis of perfectness in their work, 8% rated on the basis of their personnel attitude, other 7% rated on the basis
46
of their experience and 55% responded that they will rate on the basis of all the above skills.
9. How do you feel about apex review committee in your organization? A NO.OF.RESPONDENTS 17 PERCENTAGE 17
B 52 52
C 22 22
D 6 6
E 3 3
INTERPRETATION The above pie chart represents the satisfaction of employees regarding the apex review committee. The analysis say that 17% are highly satisfied, 52% are satisfied, 22% have no idea, 6% are less satisfied and 3% are not satisfied with the apex review committee. Thus the analysis says that most of them are satisfied with apex review committee. 47
10. Do you think ARC is rating on the basis of unbiased and objective facts? NO.OF.RESPONDENTS PERCENTAGE
A 60 60
B 40 40
INTERPRETATION From the above pie chart it can be interpreted that 60% of the employees rated that the apex review committee rates on the basis of unbiased and objective facts whereas 40% of the employees feel that they do not rate on the basis of the above. In the above chart 1 represents yes and 2 represents no.
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11.Are the ratings given to you in past 5 years are up to your expectations? A NO.OF.RESPONDENTS NIL PERCENTAGE 0
B 62 62
C 30 30
D 8 8
INTERPRETATION From the above pie chart it can be interpreted that 62% responded that the ratings given to them are to their expectations, 30% feel rating given to them is below their expectations, 8% can’t express their opinions in regard to this and no one responded that the ratings are more than their expectations. Thus the above analysis makes it clear that most of them are satisfied with their ratings.
49
12. Will you be given the training that is required after appraisal? NO.OF.RESPONDENTS PERCENTAGE
A 55 55
B 45 45
INTERPRETATION The above question is put forward to employees to know whether they are given the training required after appraisal or not and the analysis say that 55% say that they have been given the training and 45% say that they have not been given any training. Thus there is a small difference between the training provided and the training not provided.
50
13. Training programs provided after appraisal are A NO.OF.RESPONDENTS 20 PERCENTAGE 20
B 32 32
C 40 40
D 3 3
E 5 5
INTERPRETATION From the above table and graph it can be visible that 20% of the employees have given their feedback regarding training provided after appraisal is more effective, 32% given their feedback as effective, 40% as average, 3% and 5% as less effective and not effective.
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14. How many times have you been given the training programs in past 5 years? A NO.OF.RESPONDENTS 35 PERCENTAGE 35
B 15 15
C 20 20
D 0 0
E 30 30
INTERPRETATION From the above graph it can be interpreted that 35% of the respondents took the training programs for 0-2 times in past five years, 15% took 2-5 times, 20% took5-8 times, and30% of the employees have taken more than 10 times in past five years.
15. In which area do you think you can improve your performance? 52
A NO.OF.RESPONDENTS 13 PERCENTAGE 13
B 32 32
C 55 55
INTERPRETATION The above analysis represents the area of work in which the employees would like to improve their performance. The above graph interprets that 13% would like to improve in the same area of work, 32% in more specialized areas and 55% of the respondents wants to improve in cross-functional areas.
16. Have you been given an opportunity to discuss and clarify regarding developmental and training needs? 53
NO.OF.RESPONDENTS PERCENTAGE
A 75 75
B 25 25
INTERPRETATION From the above pie chart it is visible that most of the respondents have been given good opportunity to discuss and clarify regarding training and developmental needs. A nominal % of the respondents feel that the opportunity is not given to them up to the mark.
54
CHAPTER-IV
FINDINGS SUGGESTIONS CONCLUSIONS
FINDINGS Maximum no of employees in the organization are long-standing employees. So, the company can make use of their services to train the new consumers 55
The company succeed in implementing the format of prefer because 56% employees felt it good. The superior spends more time for dialoging with the employees because majority of employees are favor of them. Majority of the employees viewed that half-yearly review of performance appraisal is necessary to make corrections, feedback solve the problems and for effectives communications between superiors and sub-ordinates Majority of employees are supporting the management in case of time of rating considering both behavioral and functional aspects. The superiors makes continuous feedback monthly to know the performance of the employees and to detect the mistakes if any it is helpful to the organization development. The employees of NARANGS INTERNATIONAL HOTELS LTD are rating their skills on the basis of fin work allotted perfectness in work. Majority of the employees are satisfied about APEX REVIEW COMMITTE it helps the management to know the performance of the employees and makes them more skilled SUGGESTIONS
56
Though most of the departmental heads are having good communication with their subordinate, there are some departmental heads that are not providing proper guidance to their subordinates and they should be revised as soon as possible. The column of career aspirations in perfect form that should be filled by the employees should be given more importance; superiors should take proper action and make employees mention their career plans clearly. And help them to achieve their plans by giving proper feedback. Most of the employees in the organization are feeling that the rating given to those by apex review committee are biased. So, it becomes the responsibility of the organization to ensure the employees that the ratings given to them are based on objective facts. The employees should be given a chance to express their view fairly regarding the ratings given to them. The organization should take care to improve the skills of the employees in crossfunctional areas so that they can satisfy their internal desire to excel in various fields. It would be more beneficial for the employees if the review is done quarterly. This would specially help the employees in getting an additional opportunity to get the feedback and improve themselves in performing their job more effectively. The organization should see that the impact of training is made to prevail at the work place, so that the learned skills of the employees are efficiently utilized.
CONCLUSION 57
Performance
appraisal
is
known
as
Perfect
in
NARANGS
INTERNATIONAL HOTELS LTD which is a great success and beneficial to great extent. Perfect is conducted once in every year which has a fixed format. Employees who will be rated gave their opinion that they are satisfied with the perfect in their organization, which deals with evaluating the performance of each employee. Perfect has been proved to be helpful to all the employees in achieving both individual and organization goals.
It also helps to identify the needed training programs which are required to improve functional and behavioral skills, helps in planning the career aspirations, helps in developing good communication between superiors and subordinates. Evaluation of employees with perfect helps in detecting the loopholes which leads to increase the success ratio. This continuous scrutiny by efficient seniors led to great success of perfect. This made the employees work efficiently which led to the growth of both the individual as well as the organization.
58
CHAPTER-V BIBLIOGRAPHY
BIBILOGRAPHY
1.
ESSENTIAL OF HUMAN RESOURCE MANAGEMENT
P. SUBBA RAO
2.
READING IN HUMAN RESOURCE
T.V. RAO
59
MANAGEMENT 3. 3 4.
ORGANIZATIONAL BEHAVIOUR PRINCIPALS AND PRACTICES OF MANAGEMENT
V.S.P. RAO TRIPATI &REDDY
5.
PERFORMANCE APPRAISAL THEORY AND PRACTICES
R. HENDERSON
6.
HUMAN RESOURCE MANAGEMENT
K. ASWATAPPA
7.
HUMAN RESOURCE MANAGEMENT
ANJALI GHANEKAR
8.
PERFORMANCE APPRAISAL
9.
HRM REVIEW
WWW.HR-GUIDE.COM. ICFAI UNIVERSITY
60
CHAPTER –VI ANNEXURE
DEPARTMENT:
DATE:
EMPLOYEE CODE:
PLACE:
1. From how many years are you working in this organization? [a] 0-2yrs
[b] 2-5yrs
[c] 5-8yrs
[d] 8-10yrs
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[e] more than 10yrs
2. How does u feel about the format of perfect in your organization? [a] Very good
[b] Good
[c] Average
[d] Not bad
[e] Bad
3. Will your superior spend reasonable time dialoguing with you and take active part in enhancing your performance? [a] Yes
[b] No
4. Do you think half-yearly review is necessary? [a] Yes
[b] No
If yes, in what way it is helpful to you? [a] Corrections can be made as and when required [b] Feedback can be received periodically [c] Problems can be solved more easily [d] Communication between superior and subordinate will increase [e]all the above 5. Do you think both behavioral and functional aspects are considered at the time of rating? [a] both are taken into consideration [b] Both are not taken into consideration [c] Only behavioral aspects are taken [d] Only functional aspects are taken [e] Other aspects are also taken into consideration
6. Does your superior give you continuous feedback regarding your Performance? [a] Monthly
[b] Quarterly
[c]Half-yearly
[e] None of the above 7. How would you rate your own skills? [a] On the basis of work allotted to you 62
[d] Annually
[b] On the basis of perfect ness in work [c] On the basis of personal attitude [d] On the basis of your experience [e] All the above 8. How do you feel about apex review committee in your organization? [a] Highly satisfied
[b] Satisfied
[c] Neutral
[d] Less satisfied
[e]Not satisfied 9. Do you think ARC is rating on the basis of unbiased and objective facts? [a] Yes
[b] No
10. Are the ratings given to you in past 5 years are up to your expectations? [a] More than the expectations [b] To the expectations [c] Below the expectations [d] Neutral 11. Will you be given the training that is required after appraisal? [a] Yes
[b] No
12. Training programs provided after appraisal are [a] More effective
[b] Effective
[c] Average
[d] Less effective
[e] Not effective
13. How many times have you been given the training programs in past 5 years? [a] 0-2 times
[b] 2-5 times
[c] 5-8 times
[d] 8-10 times
[e] More than 10 times 14. In which area do you think you can improve your performance? [a] In the same area of work
[b] In more specialized areas 63
[c] Cross functional areas 15. Have you been given an opportunity to discuss and clarify regarding Developmental and training needs [a] yes
[b] no
64
