PERFORMANCE APPRAISAL OF EMPLOYEES

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1 PERFORMANCE APPRAISAL OF EMPLOYEES Dr. B.SWARNALATHA Assistant professor (Senior Grade) Bharathiyar College of Engineering and Technology, Karaikal ABSTRACT Performance appraisal is a formal, structured system of measuring and evaluating an employee s job, related behaviors and outcomes to determine the present way of performing the job and finding the better way of expected performance if necessary for the employee to perform more effectively in future so that the employee, organization, and society all gets benefited. A survey was conducted with respondents in Shasun Chemicals private limited at Puducherry. A well-structured questionnaire was used to collect the primary data from the respondents. After gathering the primary data, they were analyzed by using percentage analysis, Correlation and Analysis of variance. The hypotheses results show that there is moderate correlation between cooperation and appreciation and there exist significant difference between the experience and the performance carried out in the organization. Key words : Performance, Employee, Appraisal, Satisfaction,Employer, Appreciation, Cooperation. INTRODUCTION Appraisal of performance is widely used in society. Parents evaluate their children, teachers evaluate their students and employers evaluate their employees. However, formal evaluation of employees is believed to have been adopted for the first time during the First World War. At the instance of Walter Dill Scott the U.S. Army adopted the Man to Man rating system for evaluating military personnel. Performance appraisal aims at both judgmental whereas the remaining are developmental. Under development efforts employees are helped to identify their weakness and take steps to overcome them. It is largely self-development of employees. By focusing attention on performance, performance appraisal goes to the heart of personnel management and reflects management s interest in the process of employees. Performance appraisal is a formal, structured system of measuring and evaluating an employee s job, related behaviors and outcomes to determine the present way of performing the job and finding the better way of expected performance if necessary for the employee to perform more effectively in future so that the employee, organization, and society all gets benefited. The history of performance appraisal is quite brief. Its roots in the early 20 th century can be traced to Taylor s pioneered Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management. According to V.S.P.Rao, Performance Appraisal is a method of evaluating the behavior of the employees in the work spot, normally including both the quantitative and qualitative aspects of the job performance. REVIEW OF LITERATURE "Performance appraisal is a systematic periodic and impartial rating of employee's excellence in matters pertaining to his present job and to his potentialities for a better job." (Edwin B, Flippo) Performance appraisal is mainly used for three purposes. (i) As a basis of reward allocation such as salary increments, promotion and other rewards etc. (ii) Performance appraisal will point out the weaknesses of employees and will spot the areas where development efforts are needed. Performance appraisal is a tool for identification of deficiencies. (iii) It can be used for the selection and development programme. (Deepa. E, et al 2004) summarizes on the performance appraisal system/method as a whole, their framework and its relationship with different job related concepts as well as issues related to Performance appraisal such as how Performance appraisal (PA) is related to job satisfaction, organization citizenship behaviour etc. The Performance appraisal approach is formal and structured system of measuring as well as evaluating an employee s job related behaviours and output for the same and to study how and why the employee is currently performing on the job Impact Factor ( GIF) 5.42 Page 19

2 and how he can perform his job more effectively in the near future. There has been a historical evolution Performance appraisal approach. The Performance appraisal process may be unsatisfactory for most people in industry; performance appraisals serve a number of valuable organizational purposes. The appraisal system is complicated as there is a culture believes that people should be rewarded for outstanding performance, yet does not like to receive negative feedback (Wiese, et al,1998). A performance appraisal is conducted on an annual basis for existing employees whereas for trainee and new recruits it is done on quarterly basis in many organizations. Here author studies about the multidimensional nature of job where the nurse gives rating to different job of nursing process.thus, Employees who have relatively less competition or lenient appraisers have higher appraisal than to equally competent employee (Rajput, et al, 2015). A performance appraisal system is a wide concept and as a Performance Management it has become a part of more strategic approach towards HR activities and as a result has it has begun to focus more on motivational and social appraisal. As a result of this, the research on the subject has moved beyond the limited and accuracy of performance ratings. The organization s outcome that is its success and failure is determined by Performance appraisal, thus this system is considered to be an important work performance in any organization. (Fletcher, et al, 2001) The article of the author (Roberts, et al, 2002) summarizes about the foundation for participation of employee including its intrinsic motivational value, present available information. The role of goal setting and feedback of performance appraisal for enhancing participation effectiveness is outlined. The factors that resulted in lack of effectiveness of participation includes lack of training of employee, absence of accountability strategies, and organizational and supervisors resistance to honest subordinate feedback (Roberts, et al, 2002). Here the research is based on a sample of 170 respondents who answered a questionnaire giving their perceptions on the purpose and criteria of PA. There are different techniques of appraisal such as behavior-based, objective-based and judgment-based. The study provides HR practitioners with suggestions on how to increase the perceived justice of the PA system (Palaiologos, et al, 2011). There is evidence that Performance ratings are manipulative mainly due to political purposes or biases in organization as said by many researchers. The studies were conducted to examine the effect of employee s perceptions of personal biases or political motives and turnover by surveying white collar employees (N=127) in performance appraisal on their job satisfaction, which can be find out through regression analysis as well as cross validation analysis. The result through regression analysis shows that employees think appraisal rating as manipulated because of rater s personal bias which indirectly reduces job satisfaction and high turnover (Poon, et al, 2004). The survey was made on educational institution of Takoradi, Ghana, where author study was focused on employee/staff perceptions on performance appraisal method, biases or error related to the approach. Perception influence people s judgment and attitudes towards particular thing, therefore the staff might hold different opinions about the performance appraisal system in the organization. The research on this concept was analysed, using different method such as descriptive statistics and the results of the study says that employees are affected by the Performance appraisal system and are affected by major error (Boachie-Mensah, et al, 2012). OBJECTIVES OF THE STUDY: 1. To study the existing process of performance appraisal followed in Shasun Chemicals private limited. 2. To identify the factors that influencing performance appraisal of the employees in the company. 3. To assess the satisfactory level of employees about the performance appraisal of the organization. METHODOLOGY The research design adapted in the present study is a Descriptive research. Descriptive research studies are those studies which are concerned with describing the characteristics of a particular individual, or of a group. A survey was conducted with employees of Shasun Chemicals private limited at Puducherry. The Population size is 300 employees and the sample size was derived by the formula. Simple Random sampling technique was employed for collecting samples for the study. A well-structured questionnaire was used to collect the primary data from the respondents. After gathering the primary data, they were analyzed by using percentage analysis and statistical tools such as Correlation and Analysis of variance. HYPOTHESES OF THE STUDY H1 : There is significant difference between level of cooperation and appreciation in the organization. H2 : There is significant difference between experience and job performance in the organization. TABLE - 1: CO-OPERATION AND HELPING HANDS FROM SUPERVISORS S.No Levels of co-operation No. of Respondents Percentage (%) 1 Strongly agree Agree Neutral Disagree Strongly disagree Impact Factor ( GIF) 5.42 Page 20

3 From the table it is identified that 73% of the respondents agree with the co-operation they get from supervisors, 19% of the respondents have neutral opinion and only few respondents disagree the same. TABLE - 2: SUPERIORS APPRECIATION FOR EXCELLENT PERFORMANCE S.No Level of appreciation No. of Respondents Percentage (%) 1 Strongly agree Agree Neutral Disagree Strongly disagree From the above table it is inferred that 56% of the respondents agree with the supervisors appreciation for the excellent performance and 21% of them respondents have neutral opinion and 22% of them disagree with the opinoin. TABLE - 3: INTERPERSONAL RELATIONSHIP S.No Interpersonal relationship No. of Respondents Percentage (%) 1 Excellent Good Fair Poor Very poor From this table, it is clear that 33% of respondents feels the interpersonal relationship as good, 20% of them feel as excellent,41% of the respondents feel as fair and few respondents feel as poor. TABLE - 4: ORGANISATION CHANGE S.No Organization change No. of respondents Percentage (%) 1 Substantially To certain extent Marginally To some extent Not at all From the above table it is inferred that 33% of the respondents agree with the marginal change in the organization, 31% agree with the organisational change to some extent. This clearly indicates the introduction of the change in the organization. Impact Factor ( GIF) 5.42 Page 21

4 TABLE - 5: NATURE OF PRESENT JOB S.No Present job No. of Respondents Percentage (%) 1 Challenging Interesting Satisfying From the above table, 45% of respondents reveal that the job is interesting and 33% of respondents feel the job is satisfying and 21% of them feel the job as challenging. TABLE - 6: SATISFACTORY LEVEL OF PRESENT APPRAISAL SYSTEM S.No Satisfactory level No. of Respondents Percentage (%) 1 Highly satisfied Satisfied Moderate Dissatisfied Highly dissatisfied From the above table it is inferred that 47% of respondents are satisfied with the present appraisal system and 22% of respondents have neutral opinion on performance appraisal and 30% of them are dissatisfied with the present appraisal systems. TABLE - 7: CORRELATION ANALYSIS COOPERATION Pearson Correlation Sig.(2-tailed) N COOPERATION 1 APPRECIATION.622 **.000 APPRECIATION Pearson Correlation Sig.(2-tailed) N.622 **.000 **.Correlation is significant at the 0.01 level(2-tailed) 1 The calculated value of r = This shows that there is a positive correlation between the two variables and there is moderate correlation between cooperation and appreciation. Impact Factor ( GIF) 5.42 Page 22

5 TABLE - 8: ANALYSIS OF VARIANCES FOR PERFORMANCE APPRAISAL Source of 5% F-limit (from Sum of squares d.f Mean squares F-ratio variation the table value) Between sample Within sample Total The above table shows that the calculated value of F is which is greater than the table value.020. This analysis rejects null hypothesis. Therefore we may conclude that there is significant difference between the experience and the performance carried out in the organization. CONCLUSION Performance appraisal is the systematic, periodic and an impartial rating of an employee s excellence in matters of pertaining to his/her present job and his/her potential for a better job and to provide the feedback of the employees, so that they can know their strength and weakness and they can improve themselves by overcoming their weakness. A survey was conducted with respondents in Shasun Chemicals private limited at Puducherry by using questionnaire to collect the primary data from the respondents. After gathering the primary data, they were analyzed by using percentage analysis, Correlation and Analysis of variance. The hypotheses results show that there is moderate correlation between cooperation and appreciation and there exist significant difference between the experience and the performance carried out in the organization. The study concludes that the present performance appraisal system is satisfactory in Shasun Chemicals private limited at Puducherry.. REFERENCES 1. Boachie-Mensah, Francis O, Seidu, Peter Awini.(2012) Employees Perception of Performance Appraisal System: A Case Study, International Journal of Business and Management 7.2 (2012): Deepa,E; Palaniswamy R, Kuppusamy S.(Mar 2014) Effect of Performance Appraisal System in Organizational Commitment, Job Satisfaction and Productivity, Journal of Contemporary Management Research 8.1 (Mar 2014) 3. Fletcher, Clive(Nov 2001) Performance appraisal and management: The developing research agenda,journal of Occupational and Organizational Psychology 74( Nov 2001) : Palaiologos, Anastasios; Papazekos, Panagiotis; Panayotopoulou, Leda.(2011) Organizational justice and employee satisfaction in performance appraisal, Journal of European Industrial Training 35.8(2011) : Poon, June M L. (2004) Effects of performance appraisal politics on job satisfaction and turnover intention, Personnel Review 33.3 (2004) : Principles of personnel management / Edwin B. Flippo, 2nd ed., xv, 562 p, New York : McGraw-Hill, Rajput, Veena.(Apr-Jun 2015) Performance Appraisal System, Asian Journal of Nursing Education and Research 5.2 (Apr- Jun 2015): Roberts, Gary E.(Fall 2002) Employee performance appraisal system participation: A technique that works, Public Personnel Management 31.3 (Fall 2002) : Wiese, Danielle S; Buckley, M Ronald.(1998) The evolution of the performance appraisal process, Journal of Management History 4.3 (1998): Impact Factor ( GIF) 5.42 Page 23

A STUDY ON PERFORMANCE APPRAISAL OF AUTOMOBILE INDUSTRIES, AT CHENNAI, TAMILNADU

A STUDY ON PERFORMANCE APPRAISAL OF AUTOMOBILE INDUSTRIES, AT CHENNAI, TAMILNADU P.SURESH*; DR.M.AKBAR MOHIDEEN** *RESEARCH SCHOLAR 198 B, KAMBAR STREET, BELLIAPPA NAGAR, WALAJAPET,VELLORE DISTRICT **ASSOCIATE