A Study of Employee Performance Appraisal at Paper Manufacturing Industry

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1 ISSN: Volume 3 - Issue 1 October PP A Study of Employee Performance Appraisal at Paper Manufacturing Industry Aishwarya S. Akade, Harish K. Padmanabhan 1 Student, Dept of MBA, SNJB KBJ COE, Nashik. 2 Asst. Professor, Dept of MBA,SNJB KBJ COE, Nashik. ABSTRACT: This paper highlights on the study of Key Result Area (KRA) of employees performance in paper manufacturing industry. The strength of organization depends on their workforce ability and performance. Performance appraisal is the crucial and integral function of HR department. The effective appraisal system of employee performance helps to take vital decision like designing training and development, salary and incentives, promotion, retention and behavioral aspects. Performance Appraisal is a continuous process for measuring employee s performance level against the predetermined goal or task of organization. Performance Appraisal is tool of communication that helps employee and organization to understand and identify the contribution given towards objective. Key Words: Performance Appraisal, Key Result Area, Communication, Objective INTRODUCTION: The success of any organization depends on the Performance of human resources.. Performance appraisal helps to identify the area of strength and weakness of the employees and also to improve their future performance. Performance appraisal is a course of action that helps the management to find how employees are effectively to be placed in order to implement Right Person at Right Job and at Right Time. Performance appraisal is a continuous system of tracking and measuring performance against predetermined objectives and identifying area of performance to be improved. Performance appraisal is a set of assessment tool used in organization to measure the situational, social, psychological and physiological traits of employee at work place. Performance Appraisal is also the technique that measures both qualitative and quantitative performance of employee. Performance Appraisal is a source of communication between employee and employer, where performance on the job, establishing a plan of development for both parties are projected. Performance Management is the process through which managers ensure those employee's activities outputs contributes to the organization's goal. This process requires knowing what activities are desired, observing whether they occur, and providing feedback, managers and employees meet expectations. In the course of providing feedback, managers and employees may identify performance and establish ways to resolve those problems. Every individual differs in their abilities and aptitudes; hence there is difference in performance in terms of quality and quantity of the same job at same work place. Performance appraisals of employees are necessary that helps to understand each employee s abilities, competencies and relative merit and Page 142

2 ISSN: Volume 3 - Issue 1 October PP worth for the organization. Therefore, Performance Appraisal plays a vital role and important function of HR in any organization. RESEARCH METHODOLOGY Research Design: Research Design refers to "framework or plan for a study that guides the collection and analysis of data". Research Type: Descriptive Research. Research Title: A Study of Performance Appraisal of employees working at Paper Manufacturing Industry Research Objective: 1. To understand the concept of Performance appraisal. 2. To determine the Key Result Area (KRA) of employee performance. 3. To critically evaluate the employee performance at Paper Manufacturing Industry. Source of Data Collection: 1. Primary Data: The data that have been observed and recorded by the researcher for the first time in their knowledge is known as Primary Data. 2. Secondary Data: The data that have been compiled and stored by some agency or researcher. Research Instrument: 1) Structured Questionnaire. 2) Personal Interview. 3) Journals & Books. Sampling Technique: Census Sampling Method Sample Size: 4 Employees. Analysis Technique: Percentage Analysis. Limitation: The result would be varying according to the individuals as well as time. Some respondents have hesitated to provide their views due to fear of management. LITERATURE REVIEW: 1) Recognition of people as a valuable resource in the organization has led to increases trends in Employee maintenance, job security, etc. (D.B.Bagul, 214) 2) Performance appraisal of employee is done through observation and customer feedback for giving cash prize, gifts and disciplinary action. Hotel carries appraisal purely for pay hike and promotional purpose (G.P.Prasain 214) 3) HR Policies like Recruitment and Selection, Training, Career Growth Opportunities, Performance Appraisal, Compensation carefully and revise regularly to reduce employee turnover cost (S. Nivethitha 214). Page 143

3 ISSN: Volume 3 - Issue 1 October PP ) Performance appraisal helps human resource planners to determine training program and development needs, management expectations and set criteria to improve performance. (Cavanaugh, P., J. Benson, M. Brown, 27). 5) The employee satisfaction, rewards system and appraisal system are the vital part of employee management in service sector (Dr.Lalita Mishra 213) 6) Awareness of appraisal system, enriching knowledge, effective methods and feedback system are the major focus of the employee among executives towards performance appraisal (Dr.S.Jansirani, 213). 7) It is essential to set the right standards to judge the performance of the employees, set organizational objective and re-align employee s performance to meet organizational change in today's vibrant social, economic, and political environment.(dr. M. Akbar Meriden, 213) 8) Performance appraisal is a systematic and objective way of judging the relative worth or ability of an DEFINITION: employee in performing his job. The key role of managers is to manage employee s performance to measure the success of management in general. (Shreya Rustum Virani,212)\ 1. "Performance appraisal is a process of systematically evaluating performance and providing feedback upon which performance adjustments can be made. (Schermerhon etal. 24) 2. Performance Appraisal may be defined as any procedure that involves (1) settting work standards; (2) assessing the employee s actual performance relative to these standards; and (3) providing feedback to the employee with the aim of motivating that person to eliminate performance deficiencies or to continue t o perform above par. (Gary Dessler, 22) 3. Performance appraisal is the system whereby an organization assigns some score to indicate the level of performance of a target person or group. (DeNisi, 2) PURPOSE OF PERFORMANCE APPRAISAL Performance Improvement. Compensation & Rewards. Placement Decisions. Training and Development Needs. Career Planning and Development. Feedback to human resource. Career Counseling. Employee coaching and mentoring. Manpower Planning. COMPONENTS OF PERFORMANCE APPRAISAL: Page 144

4 ISSN: Volume 3 - Issue 1 October PP WHO Appraiser, Manager, Senior Executive WHOM Appraisee, Junior, Subordinate WHER E Work Place WHAT Quality and Quantity Traits WHY HR Decision and Policy Making WHEN Continuous HOW Methods and Techniques DATA ANALYSIS: 1) Co operation : KRAs Cooperation Co- operation Co- operation Page 145

5 ISSN: Volume 3 - Issue 1 October PP ) Attendance & Punctuality : Attendance & Punctuality KRAs Attendance & Punctuality Attendance & Punctuality INTERPRETATION: The maximum number of employee fall in the range of 59-5 in attendance & punctuality. Only 1 employee fall in the range of 9-8 and minimum number of employees fall in the range of 69-6 in attendance & punctuality. 3)Initiative KRAs Initiative Initiative Initiative INTERPRETATION: The large number of employee fall in the range of Only 2 employee fall in the range of 69-6and 8 employee s average range of 49-4 in initiative. Page 146

6 ISSN: Volume 3 - Issue 1 October PP )Judgment : KRAs Judgment Judgment Judgment INTERPRETATION: The large number of employee fall in the range of 79-7 in judgment. Only 1 employee fall in the range of 9-8 and 7 employee s average range of 59-5 in judgment. 5)Dependability : KRAs Dependability Dependability Dependability INTERPRETATION: The maximum number of employee fall in the range of 79-7 in dependability and minimum number of employees fall in the range of 59-5 in dependability. Attitude 6) Attitude : KRAs Attitude Attitude Page 147

7 ISSN: Volume 3 - Issue 1 October PP INTERPRETATION: The maximum number of employee fall in the range of 79-7 in attitude and average number of employees fall in the range of 59-5 in attitude. 7) Specific Job Skills : KRAs Specific Job Skills Specific Job Skills Specific Job Skills INTERPRETATION: The large number of employee fall in the range of 9-8 in specific job skills. Only 3 employee fall in the range of 49-4 and 9 employees average range of 69-6 in specific job skills. Communication 15 8) Communication : 1 5 Communication KRAs Communication INTERPRETATION: The maximum number of employee fall in the range of 79-7 in communication and minimum number of employees fall in the range of 59-5 & 49-4 in communication. 9)Productivity : Productivity 2 KRAs Productivity Productivity Page 148

8 ISSN: Volume 3 - Issue 1 October PP INTERPRETATION: The maximum number of employee fall in the range of 79-7 in productivity and minimum number of employees fall in the range of 59-5 & 49-4 in productivity. 1)Interpersonal Relationship : 15 Interpersonal Relationship KRAs Interpersonal Relationship Interpersonal Relationship INTERPRETATION: The large number of employee fall in the range of 79-7 in judgment. Only 5 employee fall in the range of 49-4 and 7 employees average range of 9-8 in judgment. 11)Organization Skills : KRAs Organization Skills Organization Skills Organization Skills INTERPRETATION: The maximum number of employee fall in the range of 79-7.Only 4 employee fall in the range of 49-4 and minimum number of employees fall in the range of 59-5 in organization skills. 12)Safety : KRAs Safety Safety Safety Page 149

9 ISSN: Volume 3 - Issue 1 October PP INTERPRETATION: The large number of employee fall in the range of Only 3 employee fall in the range of 49-4 and 7 employees average range of 9-8. Findings: The total weight age of 4respondent was taken in12 targets of Key Result Areas (KRA s) in structured questionnaire. 75% of the employees are aware about the performance appraisals carried out in their organization. The satisfaction level of the Appraisal system is quite high due to various reasons like monetary or non - monetary incentive or growth parameters. 8% appraises gets feedback immediately & 2% gets after some times. 4% recommend for Promotion, 2% recommend for incentives, 3% recommend for compensation, 1% recommend for certificates & rewards 5% employees are not agree with Current Performance Appraisal system judges strength and weakness, 1% of appraises undergo performance appraisal yearly. 75% of appraises think that performance appraisal helps to overcome short comings 8 % of appraisers get influenced by strong and weak points of employee s performance while 2% were undecided 8% of appraisers feel that present appraisal system is appropriate, while 2% were undecided. SUGGESTIONS: Need to improve the communication between the employee of inter and intra different departments. Employees should be motivated to achieve the goal of organization using monetary rewards and incentives. Conduction the effective training program like workshop, role play, telecasting motivation videos will help to improve KRA of employee and productivity. CONCLUSION: In this present paper, the existing performance appraisal systems adopted in the selected Paper Manufacturing Industry is considerable to identify the major KRA that determine the level of employee s performance. Th e overall performance appraisal methods and the responses given by employee helps to take effective measures for improving organizational and individual performance to set as an benchmark in today s competitive environment of business, The optimum utilization of human resource is possible only if effective performance appraisal method and the proper work environment is given to the employee. REFERENCES: 1) Scholarly Research Journal For Humanity Science, ISSN: , APRIL MAY, 214, VOI.-I, ISSUE-III, A Research Paper on Study of Employee s Performance Management System D.B.Bagul, PP 487,488. 2) International Journal of Management and Social Science Research Review. ISSN No: Page 15

10 ISSN: Volume 3 - Issue 1 October PP November Volume 1 / Issue 5 HRM Practices in Hotel Industry- A study of selected Hotels in Manipur G.P.Prasain 3) Global Journal of Management and Business Research Administration and Management Volume 14 Issue 1 Version 1. Year 214 ISSN: , Relationship between Human Resource Practices and Employee Turnover Intention in Hospitality Industry By S. Nivethitha, Lata Dyaram & T.J. Kamalanabhan PP ) Pacific Journal of Human ResourceUnderstanding performance appraisal fairness 4) International Journal of Business and Management Invention ISSN (Online): , ISSN (Print): X, Volume 2,Issue 2, February. 213, A Research Study on Employee Appraisal System Dr.Lalita Mishra, PP ) IOSR Journal of Business and Management, ISSN: X, p-issn: Volume 9, Issue 3(Mar. -Apr. 213), A Study on Performance Appraisal System at Wipro Infrastructure Engineering Pvt Ltd Dr.S.Jansirani, Mr. R.Hatrikrishnan, PP ) International Journal of Marketing, Financial Services & Management Research, ISSN , Vol.2, No. 5, May (213), A Study On Performance Appraisal Of Automobile Industries DR.M.AKBAR MOHIDEEN,PP. 11,111,12. 7) International Journal of Multidisciplinary Research, Vol.2 Issue 5, May 212, ISSN An Analytical Study of Performance Appraisal System of the selected Information Technology Enabled Companies SHREYA RUSTUM VIRANI. PP.135, 136,145. Services (ITES) 8) Performance Management, A.S.Kohli & T.Deb, Orford University Press, ISBN:13: , 12 th Impression Page 151