A STUDY ON PERFORMANCE APPRSIAL SYSTEM AT MANATEC ELECTRONICS EMPLOYEES IN PUDUCHERRY
TABLE OF CONTENTS
ACKNOWLEDGEMENT……………………………..i ABSTRACT……………………………………………..ii LIST OF TABLES……………………………………...iii LIST OF CHARTS………………………………………v CHAPTER
I
TITLE
INTRODUCTION 1.1 Company Profile 1.8 Introduction to the study REVIEW OF LITERATURE OBJECTIVES OF STUDY RESEARCH METHODOLOGY DATA ANALYSIS AND INTERPRETATION FINDINGS OF THE STUDY SUGGESTIONS AND RECOMMENDATIONS CONCLUSION LIMITATIONS OF THE STUDY SCOPE FOR FURTHER STUDY
II III IV V VI VII VIII
ANNEXURES I.
QUESTIONNAIRE………………………………………..
II.
BIBLIOGRAPHY………………………………………….
PAGE NO
1 16 17 24 25 29 57 58 59 60 61
ABSTRACT In every organization various factors like promotion, training & development program, incentives, rewards and various other factors are considered and given based on their performance. So for this almost all the organizations conduct Performance Appraisal for the employees. Performance appraisal is the important tool to assess the performance of the employee in the organization starting from small organization to large organization. Inefficient performance appraisal system will directly or indirectly affects the functioning of the organization’s objectives. This induced me to conduct a study on performance appraisal system which is considered to be very vital for the success or decline of any organization. The study is carried out in Puducherry. The duration of the study is one month .The population is 250 with the sample size of 50. This study includes various objectives like, to understand performance appraisal system practiced in the organization, to know the employees awareness, and their satisfaction level about performance appraisal system in the organization and it includes various scope and limitation. For this study questionnaire method is followed to collect the data and the research design is descriptive. The collected data are tabulated and analyzed using various statistical tools. With the help of the tabulation various findings are given with some suggestions and recommendations then the project is finally concluded.
LIST OF TABLES TABLE NO
TITLE
PAGE NO
5.1
AGE OF THE RESPONDENTS
29
5.2
GENDER OF THE RESPONDENTS
30
5.3
MARITAL STATUS OF THE RESPONDENTS
31
5.4
EXPERIENCE OF THE RESPONDENTS
32
5.5
EDUCATIONAL QUALIFACTION OF THE RESPONDENTS
33
5.6
LEVEL OF PRESENT JOB
34
5.7
AWARE OF THE PERFORMANCE APPRASIAL SYSTEM
35
5.8
OBJECTIVES OF THE PERFORMANCE APPRASIAL SYSTEM
36
5.9
TYPE OF THE PERFORMANCE APPRASIAL SYSTEM
37
5.10
PRESENT PERFORMANCE LEVEL
38
5.11
PRESENT APPRASIAL SYSTEM
39
5.12
PERFORMANCE APPRASIAL GIVES ADDITIONAL JOB SATISFACTION
40
5.13
LEVEL OF ADDITIONAL JOB SATISFACTION
41
5.14
FREQUENCY OF PERFORMANCE APPRASIAL SYSTEM
42
5.15
COMPARESION OF FACTORS
43
5.16
FACTORS INDUCING TO INCREASE PERFORMANCE
45
5.17
PERFORMANCE APPRASIAL SYSTEM INCREASE SELF DEVELOPMENT
47
5.18
PROGRAMME TO IMPOVE PERFORMANCE
47
5.19
LEVEL OF SELF DEVELOPMENT
48
5.20
KIND OF PROGRAMME
49
5.21
FEEDBACK EFFECTIVNESS
50
5.22
SATISFACTION LEVEL OF PERFORMANCE APPRASIAL SYSTEM
51
5.23
FEEDBACK ABOUT APPRASIAL
52
5.24
LOW PERFORMANCE LEVEL
52
5.25.1
ANALYSIS OF OPINION OF RESPONDENTS REGARDING LEVEL OF PRESENT PERFORMANCE AND KIND OF PROGRAMME (CHI SQUARE TABLE )
53
5.26.1
ANALYSIS OF RANKING GIVEN BY RESPONDENTS REGARDING TO FACTOR TO INCREASE PERFORMANCE (USING WEIGHTED AVERAGE METHOD)
55
5.27
ANALYSIS OF OPINION OF RESPONDENTS REGARDING LEVEL OF ADDITIONAL JOB SATISFACTION AND SATISFACTION OF PERFORMQNCE APPRASIAL SYSTEM (CORRELATION)
56
LIST OF CHARTS
TABLE NO
TITLE
PAGE NO
5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8
AGE OF THE RESPONDENTS GENDER OF THE RESPONDENTS MARITAL STATUS OF THE RESPONDENTS EXPERIENCE OF THE RESPONDENTS EDUCATIONAL QUALIFACTION OF THE RESPONDENTS LEVEL OF PRESENT JOB AWARE OF THE PERFORMANCE APPRASIAL SYSTEM OBJECTIVES OF THE PERFORMANCE APPRASIAL SYSTEM
29 30 31 32 33 34 35 36
5.9 5.10 5.11 5.12
TYPE OF THE PERFORMANCE APPRASIAL SYSTEM PRESENT PERFORMANCE LEVEL PRESENT APPRASIAL SYSTEM PERFORMANCE APPRASIAL GIVES ADDITIONAL JOB SATISFACTION
37 38 39 40
5.13 5.14 5.15 5.16 5.17
LEVEL OF ADDITIONAL JOB SATISFACTION FREQUENCY OF PERFORMANCE APPRASIAL SYSTEM COMPARESION OF FACTORS FACTORS INDUCING TO INCREASE PERFORMANCE PERFORMANCE APPRASIAL SYSTEM INCREASE SELF DEVELOPMENT PROGRAMME TO IMPOVE PERFORMANCE LEVEL OF SELF DEVELOPMENT KIND OF PROGRAMME FEEDBACK EFFECTIVNESS SATISFACTION LEVEL OF PERFORMANCE APPRASIAL SYSTEM
41 42 43 45 47
5.18 5.19 5.20 5.21 5.22
CHAPTER 1 INTRODUCTION
47 48 49 50 51
MANATEC ELECTRONICS was established in the year 1987 with this lone objective of taking the challenges of designing top quality service station equipments to meet the technological revolution. Manatec considers itself as a part of the eco-drive .It manufactures eco-friendly products and mode importantly in the eco-friendly conditions. Accepting the responsibilities towards the next generations the company considers itself as the part of the “save the earth� program. It is an ISO 9001 company. Certified and accredited by the council in July 1998.Manatec is the only ISO 9001 certified manufacturer of garage equipments in India and of a very few in the world. It is the first company in India to design installs computerized on-line track setting equipment in the assembly time of Ashok Leyland ltd, Hosur. It is the only company, which has developed a Digital Toe Aligner for heavy vehicles. The company is well equipped with in- house R&D department.
1.1 Product approvals:
Product approvals from HUNDAI, FORD, SUZUKI, TELCO, PEUGEOT, FIAT, EICHER, MAHINDRA & MAHINDRA, JK TYRES, CEAT TYRES etc., shows their confidence on the quality and services of MANATEC.
1.2 Awards:
Manatec has received many awards, recognitions & accreditations. Teamwork is the core factor that makes this organization as emerging leader in all fronts. The awards, recognitions, associations & accreditations are self-explanatory. The company believes in “Success by Motivations” and these awards are stepping stones for our ultimate objective. Various government of India awards was conferred to Manatec including the prestigious “President of India” Award for the company’s achievements in diverse fields.
These are some of the prestigious award received by Manatec: 1. National Award for Best Entrepreneur & Quality products in Small Scale Sector. 2. Best Productivity Performance Award. 3.”ISO 9001 Accreditation Certificate” from KPMG Quality Registrar, USA. 4. Award for Excellence in R&D (electronics) for the year 1996. 5. Best R&D Efforts Award from Prof. Murali Manohar Joshi.
1.3 Electronics facilities: •
Well-equipped electronics lab in 3000-sq.feet area.
•
Equipment Endurance Testing facilities - Hot, cold and climate chambers
•
Equipments validations facilities - In-hour developed elaborate test beds, special tools, customized test jigs
•
In-hour PCB CAD facility
1.4 Mechanical Facilities:
Excellent Mechanical Engineering Divisions - Floor space of 2000 sq.feet. - Supports all prototyping activities Tool room -
Latest machines
-
Highly skilled manpower
-
Can make any intricate, precision plastic moulds, press tools, jigs, fixtures etc
In –house machine shop -
To fabricate: Sheet metal enclosures Complex aluminum Gun metal Stainless steel parts
Manatec, growing organizations, is in the process of expanding itself towards globalization. Manatec located at puducherry, has a massive production facilities, infrastructures, expertise &more importantly experience for past two decades. Today Manatec is emerging as a truly global player in the automotive aftermarket with clear goals and vision on Total Customer Satisfaction
The company has twelve main departments namely;
1. Human resource department 2. Planning department 3. Purchase department 4. Stores department 5. Quality department 6. Assembly & testing department 7. Mechanical department 8. Production department 9. Commercial department 10.
Marketing department
11.
Accounts department
12.
Customer service department
1.5 GENERAL PROFILE OF THE COMPANY
Name
: MANATEC ELECTRONICS
Address
: C-22, 23& 30, Industrial Estate, Thattanchavady, Puducherry – 605009.
Incorporation
: 1987
Symbol
:
Chairman & M.D Of the company
: Mr.R.Mananathan
Auditor
: Mr. Manohar Chowdri
Factory Manager
: Mr. S. Vijayaraghavan
Register Office
: Puducherry
Branches of the company
: Delhi, Chennai, Bangalore, Mumbai, and Kolkata.
Office Timing
: 8.30 am to 5.30 pm
Working days in a week
: 6 Days
1.6 HR & Administration Department
The Human Resource Department deals with the employees’ recruitment, training appraisals, etc. The Administration department deals with the management activities of the company.
1.6.1 Service Regulations and Rules of Manatec 1.6.1.1 Grade and Salary Structure: Grade: The employees are graded as Junior Staff (J) Senior Staff (S) Managerial Staff (M) E.g.: Grade SllZA means Senior Staff GradeII working in zone and ‘A' training. Training: Normally, the fresh appointees have to undergo two terms of training A and B Each for one year period. During these periods, the salary will be consolidated and the following benefits are applicable:
Casual leave: 3 days p.a trainees will not be entitled for any other leave except for the days on which the factory declares a holiday.
CCA(for zonal employees)
Uniform - after 1 month from the date of joining, if applicable
Overtime wages if applicable.
Notice period for resignation.
Statutory benefits as per law.
Salary: Salary is paid on 1st of every month-For senior grade. Salary is paid on 5th of every month-For junior grade. ESI at 1.75% and PF at 12% are deducted from the salary as contribution From employee. The company contributing 4.75% for ESI
1.6.1.2 Allowance and Welfare:
ATA- Attendance Allowance. HRA- House Rent Allowance. CVA- Conveyance Reimbursement LNA- Lunch Allowance. CCA- City Compensatory Allowance. SVA- Service Allowance. SPA- Special Allowance. MDA-Medical Reimbursement. MZA-Magazine Reimbursement. EZA- Education Allowance. RLA- Relocation Allowance. VRA- Vehicle reimbursement. Attendance Allowance – Rs.150/-per month for 100% attendance. Rent Allowance – Given according to the grade wise. Conveyance Allowance – Rs. 375/-per month. Lunch Allowance – Rs. 500/-per month. Service Allowance
If the employer completes 10 years of service, he is rewarded with a gold coin.
If the employer completes 15 years of service, he is provided with a tour package.
Medical Reimbursement –Taken according to the grade wise. Magazine Reimbursement –Taken according to the grade wise. Educational Allowance (every month Rs.100/-per child for 2 children). Other Welfare: Children Book Allowance (yearly once Rs.1000/-per child for 2 children). Uniform and Shoes: Uniform – 2 sets of uniform in the odd years and 1 set in the even years. Washing Allowance – Rs.35/- per month
Marriage gift – Equal for all grades. Maternity leave for 3 months (according to days).
Newborn baby gift – Equal for all grades. Top Rankers award for 10th and 12th STD students (employees children). Sport activities: For employees within the company:
Internal games – Table Tennis, Carom etc.
External games – running, etc.
1.6.1.3 Overtime:
Junior staff of administration department is only eligible for over time wages, overtime wages will be twice the basic pay calculated on hourly basis.
. All other employees, working extra hours will be given due consideration during performance appraisal.
1.6.1.4 Leave and Absenteeism: Leave and sanctioning authorities:Junior &Senior grade employees, who want to avail leave, must get the, Leave
sanctioned
from
their
DIC’s
in
advance
before
availing
the same for managers and above leave will be sanctioned by MD Half day leave Employees who are applying half day leave in the afternoon, should give Proper leave letters if anybody, who leaves the work spot with half day leave without giving proper leave form, will be treated as absent and salary cut will be effected whether leave is available in their account or not. 1.6.1.5 Punctuality and Permissions: All employees are expected to be punctual in attending the duty, for each late coming in a calendar month, one day CL will be deducted. 1.6.1.6 Retirement: An employee who completes 58 years of age shall retire from the service. The Age for retirement will be calculated based on the date of birth particulars Mentioned in birth certificate 1.6.1.7 Leave travel Concession:
Employees who have completed a minimum of 2 years or more ( from the Date of confirmation) of continuous service in the company.
Senior and Managerial grade employees are eligible for LTC.
1.6.1.8 Telephone and Mobile: Telephone at residence:
The rent will be paid by the company.
Telephone bills will be paid by the company for official STD or ISD calls.
Mobile Phone and SIM card:
Mobile phone will be issued to the selected employees for the purpose of effective official communication.
SIM card selection will be based on the location and requirement
While proceeding on long leave, the phone should be handed over to office.
1.6.1.9 Library: Library is available under the control of R&D department .The library has, as much as books on different topics. The books can be retained only for 15 days, for any loss of book the value will be recovered from the employee.
1.6.1.10 Demonstration Kits: Sales engineers / service engineers have to carry demo or service kit for official purpose. Such demo kits will be signed and taken by the concerned employee while going on official tour. It is the duty of such kits as they are very costly. In the event of loss or theft of the kit during official tour, the employee will be solemnly responsible for the loss and the value of the cost kit will be recovered from the employees. 1.6.1.11 Performance Appraisal:
From the date of joining, an induction trainee will be there for 1week-2 months depending upon employee.
An employee has to undergo 6 months provision period, after the provision period only an employee will be permanent to the job.
In Manatec, the performance appraisal will be done for all employees once in a year.
The HR department will forward the appraisal form to the HR section, the complete incident / remark about the employee for past one year along with the measures of performance, parameters and VST- (Value Skill Threat) parameters for proper evaluation and feedback is made.
The superior will asses the performance of the subordinate
The superior will forward the employee appraisal to boss.
The boss will put up his recommendation to the HR department.
HR department will subject to management for final assessment and grant up the increment and return to HR department.
HR department will prepare performance feedback letter indicating the revised salary, promotion etc, and also give the feedback about the positive and negative points and also the area should improve for their improved performance.
1.6.1.12 Increment: The employees are eligible for annual increment for each grade is given in the salary structure. The increment shown is, under normal performance levels for poor/excellent performance the management may reduce or enhance the increment 1.6.1.13 Resignation: They are classified as 2 category i.e., normal and abnormal resignation. Normal Resignation: If an employee wants to resign his/her job he must first inform to his immediate superior and then he will forward to administration department through their HOD/DIC by proper channel mode and then it will be back within 7 days to the consent employee. Abnormal Resignation: If an employee performance is not satisfactory and his performance is poor the management may give resignation letter to that employee. 1.6.1.14 Termination:
By giving the respective notice period/ gross pay in lieu of notice based on that, gross pay will be calculated and paid to the employee in lieu of notice. If the employee is terminated:
He is not eligible for EL encashment, medical allowance, exgratia payment etc.
He is also not eligible for service certificate.
1.7 The products produced by Manatec are: 1) Tyre Changer 2) Wheel Aligner 3) Wheel Balancer 4) Tyre Inflator 5) Two – Post Lift 6) Head Lamp Aligner 7) Diesel – Smoke Meter
Tyre Changer
Model - TC-XL-40 This machine is used to change the tyre automatically with less manual power. It is used for mounting & de-mounting the tyres of bus, car, etc.
Wheel Balancer
Model
-
WB-DL-50
Wheel Balancer is used to balanced the wheels, (i.e.) the inner balance & outer balance.
Tyre Inflator
Model
- Air – O – matic D
Tyre Inflator is used to check the air pressure in the wheels of the vehicles. This automatically inflates air into the wheels according to the capacity of the vehicles. In case of excess air, deflation takes place automatically.
Two Post Lift
Model
-
RHIND 3S
This is used in the service station for lifting cars & LCV’s up to 3 tons capacity 7 the minimum space required to fit this machine is about 3500 feet. By using this machine the vehicles can be lifted up to a height of 150 to 1875mm
Head Lamp
Model
- HLA 1000 LX
The Head Lamp Aligner is used to check and align the Head Lamp beams of all cars, LCV’s and Trucks.
Wheel Aligner
Model - ARJUN or Pac This machine is used to align the wheels for the vehicle within the required Angles between the front 7 rear wheels. This machine was introduced with Dos based software and then with Windows based software.
DIESEL SMOKE METER
Model
–
ECO smoke
Diesel smoke meter is capable of measuring smoke opacity of diesel vehicle exhaust in percentage opacity and K – Value with measurement of RPM &engine oil temperature. It weighs 7 Kg
1.8 Introduction to the study The most valuable asset for a company is its people. Whist all other assets depreciate over a period of time, people as an asset appreciate over a period of time. Longer a person has been with a company; greater is his value in terms of experience & contribution, and therefore, his price. An organization’s goals can be achieved only when people put in their best efforts. How to ascertain whether an employee has shown his or her best performance on a given job? The answer is performance appraisal.
CHAPTER 2 REVIEW OF RELATED LITERATURE 2.1 Performance Appraisal - Definition “The overall objective of performance appraisal is to improve the efficiency of an enterprise by attempting to mobilize the best possible efforts from individuals employed in it. Such appraisals achieve four objectives including the salary reviews, the development and training of individuals, planning job rotation and assistance promotions”. -CUMMINGS “Performance Appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job” -FLIPPO
2.2 Characteristics of Performance Appraisal The main characteristics of performance appraisal are as follows.
Performance appraisal is a process consisting of a series of steps.
It is the systematic examination of an employee’s strengths and weaknesses in terms of the job.
Performance appraisal is a scientific or objective study.
It is an ongoing or continuous process wherein the evaluations are arranged periodically according to a definite plan.
The main purpose of performance appraisal is to secure information necessary for making objective and decisions on employees.
2.3 Advantages of Performance Appraisal 1. It provides information for making and enforcing decisions about promotions, pay increases, lay off transfers. 2. It serves to guide employee development. 3. It puts a psychological pressure on people to improve performance on the job. 4. It serves to maintain fair relationships in groups. 5. It makes executives more observant of their subordinates. 6. It serves as a means for evaluating the effectiveness of devices used for the selection and classification of workers. 7. Wage increase may be justified. 8. Deficiencies and shortcoming may be removed.
9. Employee may also introspect himself in the light of performance.
2.4 Factors Affecting Performance Appraisal Systems Performance appraisal programs are affected by some factors. Therefore for implementing good appraisal systems the following are necessary.
1. It should be easily understandable. The forms, which are more difficult to read and understand, are not effective performance appraisal systems. 2. The appraisal programs must have support of all line people who administer it. If line people think it is too theoretical, too ambitious, and too unrealistic or that it has been foisted on them by ivory – tower staff consultants who have no comprehension of the demands on the time of the line operator. 3. The appraisal system should fit the organizational operations and structure the form constructed and the factors framed should be suitable for the organizational culture and structure. 4. The appraisal system should be valid and reliable. 5. The performance appraisal programs should have built in incentives. 6. The appraisal form should be periodically evaluated to ensure that it meets its purpose
2.5 Steps of Performance Appraisal Establishing standards of performance
Communicating performance appraisal
Measuring actual performance
Comparing actual performance with standard laid
Discussion of appraisal with employees
Corrective actions
2.6 The Way Forward Process
Performance appraisal Rewarding Performance
Competencies
Career development & Successions Planning
Training & Development
It is essential that every employee enjoy the benefit of looking at his performance appraisal at least once in a year. A manager should analyze the performance of the employees objectively against the set standards. It is desirable for the manager to meet and discuss with the employees about the appraisal process before writing as it fosters mutual
understanding of the process and to that extent it enhances the employees’ acceptance of the outcome.
2.7 Performance Appraisal System Attributes: Clarity, Openness, and Fairness The performance appraisal system must possess the attributes of clarity, openness, and fairness. These attributes are related to the historic values of the student affairs profession. While specific implementation of these attributes may vary, the following should be represented in effective performance appraisal:
2.7.1 Ongoing Review of Position and Performance - Effective performance appraisal systems conduct ongoing evaluations of both the position and the staff member occupying it. With ongoing position analysis and performance appraisal, there are few surprises, and changes in the environment are quickly incorporated into the official appraisal system.
2.7.2 Job Descriptions - Job descriptions should be reliable, valid, understandable, and specific enough to provide direction for staff behavior. Job descriptions should focus on what the staff member does (e.g. advises the student government association) and what outcomes are expected. These outcomes should be clearly linked to departmental and institutional objectives and needs. Job descriptions should use action words such "plans" or "supervises" rather than "demonstrates initiative" or "is likable." Job descriptions should provide guidelines for staff so they know the specific behaviors expected to perform. The responsibilities of the staff member should be listed in order of importance and weighted relative to importance, if possible.
2.7.3 Participatory and Interactive Appraisal - Appraisal system processes should be designed in concert with all stakeholders and open to constant interaction with them. Plans made jointly by staff and administrators have a better chance of working than plans made independently by either party.
2.7.4 Workable formats that Avoid Systemic Bias - Effective performance appraisal systems must include workable formats that avoid systematic biases. Checklists of performance criteria completed at the same time every year should be avoided. This type of approach simply fails to produce any useful information for individual or organizational improvement. Other biases include giving preferential treatment to some but not all staff, rating all staff the same, being overly lenient or overly harsh toward some or all staff, and practicing conscious or unconscious racial or gender prejudice. Adopting a format that includes the standards of clarity, openness, and fairness and that involves more than one appraiser may help to control some of these biases.
2.8 Susan M. Heathfield of The Traditional Performance Appraisal Process Says, “Managers cite performance appraisal as the task they dislike the most. This is understandable given that the process of performance appraisal, as traditionally practiced, is fundamentally flawed. It is incongruent with the values-based, vision-driven, missionoriented, participative work environments favored by forward thinking organizations today. It smacks of an old fashioned, paternalistic, top down, autocratic mode of management which treats employees as possessions of the company.�
2.9 Bacal’s of
Performance Management & Appraisal and Work-Related Articles Says, “Performance management and performance appraisal (or employee reviews, annual reviews, etc) are some of the most misused tools anywhere. A fortune is wasted on inept processes, poor forms, and result from mistaken ideas about what performance management is for, and why we do it.”
2.10 Gerard McLoughlin of How to Prepare for a Performance Appraisal Says, “Performance appraisal should be treated as an ongoing developmental process rather than a formal once-a-year review. Both employee and reviewer to ensure that targets are being achieved should closely monitor it. By preparing yourself diligently and demonstrating a willingness to co-operate with your reviewer to develop your role, you will create a positive impression. To enable you to assess your own performance as objectively as possible, try to view it from your manager's perspective. Make sure you are conversant with the company's assessment policies and procedures.’’
2.11 From DULEWICZ Says that "... A basic human tendency to make judgments about those one is working with, as well as about oneself." Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitrarily. Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified. The process was firmly linked to material outcomes. If an employee's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order.
2.12 From KREIN Says, “Appraisers should not confront employees directly with criticism. Rather, they should aim to let the evidence of poor performance emerge "naturally" during the course of the appraisal interview. This is done by way of open-ended questioning techniques that encourage the employee to identify their own performance problems. .
CHAPTER 3 OBJECTIVES OF THE STUDY PRIMARY OBJECTIVE: To understand the Performance Appraisal System practiced in Manatec Electronics
SECONDARY OBJECTIVE:
To know the employees awareness & level of satisfaction about the Performance Appraisal practiced in the organization To identify the factors inducing to increase the performance of an employee To know the factors necessary for appraising the employees. To provide suggestions to the management in improving Performance Appraisal System.
CHAPTER 4 RESEARCH METHODOLOGY Research Methodology is a way to systematically solve the research problem. 4.1 RESEARCH – MEANING AND DEFINITION Research is an art of scientific investigation. The advanced learner’s dictionaries of current English lay are down the meaning of research as, “a careful investigation (or)
inquiry especially through search for new facts in any branch of knowledge”. Redmen and Mary define research as a “systematic effort to gain knowledge”... 4.2 RESEARCH DESIGN A research design is purely and simply the framework or plan for a study that guides the collection and analysis of data. Generally a research design is a blue print of the research that is to be followed in completing the study. It is descriptive research type are those, which are concerned with describing the characteristics of a particular individual or of a group, where we cannot control the variables 4.3 SAMPLING DESIGN Population
: 250 Members
Sampling Unit
: Employees
Sample Size
: 50 nos.
Sampling Procedure
: Simple Random Sampling (probability sampling)
4.4 METHOD OF DATA COLLECTION: 4.4.1 Primary data are measurements observed and recorded as part a study to collect original data. I.e. to conduct first hand investigation. 4.4.2 Secondary data was collected with the help of
Company records
Annual Reports
Product Catalogue
Discussion with the personnel manager and staff.
4.5 RESEARCH INSTRUMENT: Questionnaire was used to conduct the survey among 50 employees which includes open-ended and closed ended questions 4.5.1 Open – ended questions: A question which requires the respondent to answer it in his own words. 4.5.2 Closed ended question: Likert scale: A scale by the likert method in which subjects are given a number of statements and asked to indicate their agreement or disagreement with those statements. Dichotomous question: Here the respondents are under the obligation to answer between two clear cut alternatives like ‘YES’ or ‘NO’.
4.6 TOOLS FOR ANALYSIS: For the analysis of data and its interpretations, various tools of research were used.
i. Percentage Method: It refers to special kind of ratio. It is used to making comparisons between two or more series of data. Percentages are used to describe relationships. Percentage
=
No. Of Respondents
X 100
Total No. Of Respondents
ii. Chi-Square Test: It is one of the simplest and most widely used non-parametric tests, in statistical work. The quantity describes the magnitude of discrepancy between theory and observation. i.e. with the help of χ2 test we can know whether a discrepancy between theory and observation can be attributed to chance or whether it results from the inadequacy of the theory to fit the observed facts. The formula for computing chi-square (χ2) is as follows
χ2 = Σ{(Ο−Ε) 2 /Ε} iii Weighted Average Method In the Weighted Average Method, the weighted average can be calculated by the following formula
XW =
ΣWX/ΣX
Here XW represents the weighted average “X1, X2, X3, X4,………..Xn” represents the value for variable values “W1, W2, W3, W4 …Wn” represents the weight age given to the variable.
Steps •
Multiply the weights (W) by the variables (X) to obtain WX
•
Add all WX to obtain
•
Divide WX by sum of the weights (X) to get weighted average.
iv Rank Correlation
WX
Rank Correlation is the technique of determing the degree of correlation between two variables in case of ordinal data where ranks are given to the different values of the variables
Spearman’s Coefficient of Correlation (or) r =
1- 6Σdi2 n (n2-1)
di = difference between rank of the two variables n = number of pair of observations
/
CHAPTER 5 ANALYSIS AND INTERPRETATION TABLE 5.1 Age of the Respondents
Opinion Less than 25 25-35 35-45 45-55 Greater than 55 Total
No of respondents 7 29 12 1 1 50
Percentage (%) 14.0 58.0 24.0 2.0 2.0 100.0
Inference 58% of the respondents belong to the age of 25-35 years 24% of the respondents belong to the age of 35-45 years
CHART 5.1 Age of the Respondents 30 25 20 15
29
t d n esp ofR N
10 5 0 <25
25-35 35-45 45-55 >55 Age of the Respondents
TABLE 5.2 Gender Opinion MALE
No of respondents 37
Percentage (%) 74.0
FEMALE
13
26.0
Total
50
100.0
Inference From the above table it is inferred that 74% of the respondents are male and 26% of the respondents are female.
CHART 5.2
Gender 40 30
t d n esp ofR N
20
37
10 0 MALE
FEMALE Gender
TABLE 5.3 Marital Status Opinion Married Unmarried
No of respondents 28
Percentage (%) 56.0
22
44.0
Total
50
100.0
Inference From the above table it is inferred that 56% of the respondents are married and 44% Of the respondents are unmarried.
CHART 5.3
Marital Status 30 25 20 15
28
t d n esp fR o N
10 5 0
Married
Unmarried Marital Status
TABLE 5.4 Experience Opinion LESS THAN 2 2-4
No of respondents 13 21
Percentage (%) 26.0 42.0
4-6 GREATER THAN 6 Total
7 9 50
14.0 18.0 100.0
Inference 26% of the respondents belong to the experience of less than 2 years. 42% of the respondents belong to the experience of 2-4 years. 18% of the respondents belong to the experience of greater than 6 years.
CHART 5.4
Experience 25 20 15 21
t d n esp fR o N
10 5 0 LESS THAN 2
2-4
4-6
GREATER THAN 6
Experience
TABLE 5.5 Educational Qualification Opinion Illiterate Secondary Diploma
No of respondents 1 3 8
Percentage (%) 2.0 6.0 16.0
UG PG Total
35 3 50
70.0 6.0 100.0
Inference From the above table it is inferred that 16% of the respondents are Diploma, 70% of the respondents are UG and 6% of the respondents are PG. CHART 5.5
Educational Qualification 40
30
20
t d n esp ofR N
35
10
0
Illiteralte Secondary Diploma UG Educational Qualification
PG
TABLE 5.6 Describe Present Job Opinion Challenging Interesting Normal
No of respondents 9 37 4
Percentage (%) 18.0 74.0 8.0
Total
50
100.0
Inference From the above table shows that 18% of the respondents have said that their present job is challenging and 74% of the respondents have said that their present job is interesting and 8% of the respondents have said that their present job is normal.
CHART 5.6
Describe Present Job 40
30
t d n p s e fR o N
20
37
10
0
Challenging
Interesting Describe Present Job
Normal
TABLE 5.7 Aware of Performance Appraisal Opinion
No of respondents
Percentage (%)
Yes
50
100.0
Inference From the above table it is found that 100%of the employees are having awareness about the grading provided in the performance appraisal system.
CHART 5.7
Aware of Performance Apprasial 50 40 30 50
t d n esp fR o N
20 10 0 Yes
Aware of Performance Apprasial
TABLE 5.8 Objectives Performance Appraisal Opinion Yes No Total
No of respondents 46 4 50
Percentage (%) 92.0 8.0 100.0
Inference: From the above table it is found that 92% of the employees are aware of the objectives of performance appraisal system, only 8% of them are unaware about the objectives of performance appraisal system.
CHART 5.8
Objectives Performance Apprasial 50 40 30 46
t d n esp ofR N
20 10 0 Yes
No
Objectives Performance Apprasial
TABLE 5.9 Type of Performance Appraisal Opinion Open System confidential system Total Inference:
No of respondents 1 48 50
Percentage (%) 2.0 96.0 100.0
From the table it is found that 2% of employees are followed with open-system and for 96% of employees confidential system is followed.
CHART 5.9
Type of Performance Apprasial 50 40 30 48
t d n esp fR o N
20 10 0 Open System
confidential system Type of Performance Apprasial
3
TABLE 5.10 Present Performance Level Opinion Good Fair Needs Improvement Total
No of respondents 10 30 10 50
Percentage (%) 20.0 60.0 20.0 100.0
Inference: From the above table shows that 20% of the respondents opinions were good, 60%of the respondents opinion were fair and 20% of the respondents opinions were needs improvement towards performance level. CHART 5.10
Present Performance Level 30 25 20
t d n esp fR o N
15
30
10 5 0 Good
Fair
Needs Improvement Present Performance Level
TABLE 5.11 Present Appraisal System No of respondents 40
Percentage (%)
Partially Satisfied
10
20.0
Total
50
100.0
Opinion Satisfied
80.0
Inference: From the above table shows that 80% of the respondents were satisfied, 20% of respondents were partially satisfied towards performance appraisal system.
CHART 5.11
Present Apprasial System 40
30
t d n esp fR o N
20
40
10
0 Satisfied Partially Satisfied Present Apprasial System
TABLE 5.12 Performance Appraisal Additional Satisfaction Opinion Yes
No of respondents 49
Percentage (%) 98.0
No
1
2.0
Total
50
100.0
Inference:
From the above table shows that about 98% of the respondents have said that were additional job satisfaction towards the performance appraisal and 2% of the respondents have no such additional job satisfaction.
CHART 5.12
Performance Apprasial Additional Satisfaction 50 40 30 49
t d n esp ofR N
20 10 0 Yes No Performance Apprasial Additional Satisfaction
TABLE 5.13 Level of Add Job Satisfaction Opinion At Very High Level High Level Moderate Total Inference:
No of respondents 4 38 8 50
Percentage (%) 8.0 76.0 16.0 100.0
From the above table shows that the level of additional job satisfaction 8% of the respondents at very high level and 76% of the respondents have that their level of additional job satisfaction is high and 16% of the respondents have said their have of additional job satisfaction is moderate. CHART 5.13
Level of Add Job Satisfaction 40 30
t d n esp ofR N
20
38
10 0 At Very High High Level Moderate Level Level of Add Job Satisfaction
TABLE 5.14 Frequency of PA Opinion Quarterly Half-yearly Annually Total
Inference:
No of respondents 4 1 45
Percentage (%) 8.0 2.0 90.0
50
100.0
From the table it is found that 8% of employees, the time span for conducting the performance appraisal process is quarterly, for 2% of employees the time span is half-yearly, for 90% of employees the time span is annually . For majority of employees annual time span is followed. CHART 5.14
Frequency of Performance Apprasial 50
40
30 45
t d n esp fR o N
20
10
0 Quarterly Half-yearly Annually Frequency of Performance Apprasial
COMPARASION OF FACTORS APPRAISING THE EMPLOYEES TABLE 5.15
Opinion
Agreed Partially agreed Disagree d
Commi tment of Work
Disciplin e
Job Knowle Attendan dge ce
Relation with Superior and Subordin ates
X
Y
X
Y
X
Y
X
Y
X
Y
X
Y
X
Y
X
Y
X
Y
43
86
48
96
48
96
44
88
42
84
43
86
48
96
42
84
2 6
52
6
12
2
4
2
4
6
12
8
16
7
14
2
4
8
16
2 4
48
1
2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Plan of Work
Decision Making
Leadershi p Qualities
Commu nication Skills
X = No of respondents Y = Percentage (%) Inference From the above table it is found that, majority of the employees are agreed to the factors of inducing to increase their performance, mainly to the factors of Discipline 96%, Job Knowledge 96%, and Decision Making 96%.
COMPARASION OF FACTORS APPRAISING THE EMPLOYEES CHART 5.15
Rows
Communication Skills Count
Agreed
Leadership Qualities Count
Partially agreed Disagreed
Decision Making Count Factors
Plan of W ork Count Relation with Superior and Subordinates Count Attendance Count Job Knowledge Count Discipline Count Commitment of W ork Count 10.00
20.00
30.00
Values
TABLE 5.16 Factors Inducing to Increase Performance
40.00
Opinion Commitment of Work Discipline Job Knowledge Relation with Superior and Subordinates Decision Making Leadership Qualities Communication Skills Total
No of respondents 1 10 8
Percentage (%) 2.0 20.0 16.0
10
20.0
14 6 1 50
28.0 12.0 2.0 100.0
Inference 20% of the respondents belong to the factor of Discipline 20% of the respondents belong to the factor of Relation with superior and Subordinates 28% of the respondents belong to the factor of Decision Making.
CHART 5.16
Factors Inducing to Increase Performance Commitment of Work Discipline Job Knowledge Relation with Superior and Subordinates Decision Making Leadership Qualities Communication Skills
TABLE 5.17
Performance Appraisal - Self Development Opinion Yes
No of respondents
Percentage (%)
50
100.0
Inference: From the above table shows that 100% of the respondents have facilitated to increase self-development
TABLE 5.18 Employee Performance Programme Opinion
No of respondents
Percentage (%)
50
100.0
Yes
Inference: From the above table shows that 100% of the respondents have facilitated to know the employee performance programme.
TABLE 5.19
Level of Self Development Opinion Very High
No of respondents 1
Percentage (%) 2.0
High
43
86.0
Moderate
6
12.0
Total
50
100.0
Inference: From the above table it is found that 86% of the respondents feel high, 12% of the respondents feel Moderate CHART 5.19
Level of Self Development 50 40 30
t d n esp ofR N
20
43
10 0 Very High High Moderate Level of Self Development
TABLE 5.20
Kind of Programme Opinion Group Discussion
No of respondents 25
Percentage (%) 50.0
Course Undertaken
25
50.0
Total
50
100.0
Inference: From the above table shows that 50% of the respondents are undertaking group discussion, 50%of the respondents are undertaking course undertaken
CHART 5.20
Kind of Programme 25 20 15 25
25
t d n esp fR o N
10 5 0 Group Discussion Course Undertaken Kind of Programme
TABLE 5.21
Feedback Effectiveness Opinion Helps in Knowing One's Own Potential
No of respondents
Sense of Recognition Total
Percentage (%)
41
82.0
9
18.0
50
100.0
Inference 82% of the respondents belong to effectives of helps in knowing oneâ&#x20AC;&#x2122;s own potential. 18% of the respondents belong to effectives of Sense of Recognition.
CHART 5.21
Feedback Effectiveness 50 40 30
t d n esp fR o N
20
41
10
0 Helps in Knowing One's Own Potential Sense of Recognition Feedback Effectiveness
TABLE 5.22
Satisfaction of Performance Appraisal Opinion Satisfied
No of respondents 42
Percentage (%) 84.0
Moderate
8
16.0
Total
50
100.0
Inference From the above table it is inferred that 84% of employees are satisfied with the following system, and 16% of them are moderate and none of the employees are dissatisfied with the following system.
CHART 5.22
Satisfaction of Performance Apprasial 50 40 30
t d n esp fR o N
20
42
10 0 Satisfied Moderate Satisfaction of Performance Apprasial
TABLE 5.23
Feedback of Performance Appraisal Opinion Yes
No of respondents 50
Percentage (%) 100.0
Inference: From the table it is found that 50% of employees are given feedback.
TABLE 5.24 Low Performance Level of Performance Appraisal Opinion
No of respondents
Percentage (%)
By Training
50
100.0
Inference: From the table it is found that 50% of employees are given by training.
ANALYSIS OF OPINION OF RESPONDENTS REGARDING PRESENT PERFORMANCE LEVEL AND KIND OF PROGRAMME [USING CHI SQUARE] TABLE 5.25 Observed Count
Present Performance Level
Good Fair Needs Improvement
Total
Kind of Programme Course Group Undertake Discussion n 7 3 16 14
Total 10 30
2
8
10
25
25
50
Expected Count
Present Performance Level
Good Fair Needs Improvement
Total
Kind of Programme Course Group Undertake Discussion n 5.0 5.0 15.0 15.0
Total 10.0 30.0
5.0
5.0
10.0
25.0
25.0
50.0
NULL HYPOTHESIS: Ho: There is no association between present performance level and kind of programme ALTERNATE HYPOTHESIS H1: There is association between present performance level and kind of programme
TABLE 5.25.1
CHI SQUARE Oi
Ei
(Oi-Ei)2 /Ei
7 16 2 3 14 8
5 15 5 5 15 5
0.8 0.06 1.8 0.8 0.06 1.8
Calculated value = ÎŁ(Oi-Ei) 2 /Ei = 0.8+0.06+1.8+0.8+0.06+1.8 = 5.32 Degrees of freedom = (R-1) (C-1) = (3-1) (2-1) = 2 Tabulated value for 2 degrees of freedom at 5% level of significance is 5.33 The calculated value is less to tabulated value, therefore Ho is accepted. Inference: There is no association between present performance level and kind of programme
ANALYSIS OF OPINION OF RESPONDENTS REGARDING LEVEL OF ADDITIONAL JOB SATISFACTION AND SATISFACTION OF PERFORMANCE APPRASIAL SYSTEM [USING RANK CORRELATION] TABLE 5.26 Opinion of the Respondents
High Level 38
Moderate
Level of Additional Job Satisfaction (X)
At very High Level 4
Satisfaction of Performance Appraisal (Y)
0
42
8
8
TABLE 5.26.1
r = = r =
X
Y
(xi-yi) 2
3
3
0
1
1
0
2
2
0
1- 6ÎŁdi2/ n (n2-1) 1 - 6(0) 3(32-1) 1
Inference Level of additional job satisfaction and satisfaction of performance appraisal system are positively correlated.
CHAPTER 6 FINDINDS OF THE STUDY Most of the respondents belong to the age of 25-35 years, majority of the respondents are male, and most of the respondents are having experience of 2-4 years. Majority of the respondents have said their present job is interesting. 100% of employees aware about the performance appraisal system carried out in the organization, 96% of employees follow confidential system. Most of the respondents opinion was fair, and 80% of the respondents are satisfied towards performance appraisal system. Majority of the respondents are having additional job satisfaction towards performance appraisal. The performance appraisal period is 90% towards the opinion of the respondents. Most of the employees induce the factors of decision-making. All the employees are accepting that, there is increase in self-development. All the employees are given feedback and training. There is no association between present performance level and kind of programme. . The opinion of the respondents regarding level of additional job satisfaction and satisfaction of performance appraisal system are positively correlated. The opinion of the respondents regarding the factors for appraising the employees they rank Discipline, Job Knowledge, Decision Making as first rank followed with Attendance and last as Communication Skills.
CHAPTER 7 7.1 SUGGESTIONS AND RECOMMENDATIONS
From the study it was found that the employees lacked in communication skills, so the organization can give special training on soft skills to the employees. Findings show that only confidential type of performance appraisal system is followed widely. Open system of performance appraisal can also be followed. Only two type of training programme like group discussion and training related to their specific job is given. Knowledge about ethics and interpersonal relationship should be introduced. Senior management should continually review the appraisal conducted, which shall be seen as positive support to the system by the appraiser as well as apprasisees, and their interest will be maintained.
7.2 CONCLUSION
This study helps to understand the performance appraisal system practiced in the Manatec Electronics. Majority of the employees are benefited by this system and the procedure followed and they are enjoying the various benefits from this system Performance Appraisal System helps is employees career growth it support them to take their consideration to the management and to get more benefits and also for their more effective performance.
CHAPTER 8 LIMITATIONS OF THE STUDY 1. The employees were a bit hesitant to reveal the negative aspects in spite of the confidence given to them that study is meant for academic purpose and the personal details will maintained in total confidence. 2. Due to shortage of time the sample size is limited to only 50. 3. The information provided by the respondents is spontaneous and they may not be consistent.
SCOPE FOR FURTHER STUDY a.The scope of the study encompasses all the members in all the departments existing in a firm. The study is conducted to know the expectation among the employees.
ď&#x192;&#x2DC; The study is carried out in Puducherry. The study is for a Period of 1months. The population is 250 employees. The sample size taken is of 50. ď&#x192;&#x2DC; The Projects emphasizes the expectations and opinions of employees which would be useful for the organization in understanding the employees mind.
ANNEXURE I QUESTIONNAIRE A Study on Performance Appraisal System at Manatec Electronics Please Tick ( )
SECTION â&#x20AC;&#x201C; I: PERSONAL DETALIS 1. Name: ____________________ 3. Gender:
Male ( )
2.Age (in years):____________
Female ( )
4. Marital Status: Married ( )
Unmarried ( )
5. Designation: _________________ 6. Experience (in years):___________ 7. Educational Qualification: Illiterate ( )
Secondary ( )
Diploma ( )
UG ( )
PG ( )
SECTION-II. STUDY RELATED INFORMATION: 1. How do you describe your present job? a) Challenging [ ]
b) Interesting [ ]
c) Normal [ ]
2. Are you aware of the performance appraisal system practiced in your organization? Yes
[ ]
No
[ ]
3. Are you aware of the objectives of performance appraisal system in your organization? Yes
[ ]
No
[ ]
4. What type of performance appraisal system is followed in your organization? a) Open-system
[
]
b) Confidential system
.5. Describe your present performance level in your company? a) Good [ ]
b) Fair [ ]
c) Needs improvement [ ]
[
]
6. Are you satisfied with the present appraisal system followed in your organization? a) Satisfied [ ]
b) Partially satisfied [ ]
c) Dissatisfied [ ]
7. a) Does the performance appraisal gives additional job satisfaction to you? a) Yes [ ]
b) No [ ]
b) If yes, at what level it gives additional job satisfaction:a) At very high level [ ]
b) High level [ ]
c) Moderate [ ]
8. How frequently the performance appraisal is carried out in your organization? a) Quarterly
[ ]
b) Half-yearly
[ ]
c) Annually
[ ]
d) More than a year
[ ]
9. Do you think the following factors are necessary for appraising the employees? Agreed a.
Commitment of work
Partially agreed
Dis-agreed
[
]
[
]
[
]
b.
Discipline
[
]
[
]
[
]
c.
Attendance
[
]
[
]
[
]
d.
Job Knowledge
[
]
[
]
[
]
e.
Relation with superior and subordinates
[
]
[
]
[
]
f.
Plan of Work
[
]
[
]
[
]
g.
Decision Making
[
]
[
]
[
]
h.
Leadership qualities
[
]
[
]
[
]
i.
Communication skills
[
]
[
]
[
]
10. Among the performance appraisal factors which induce you the most to increase your performance.
11. a) Does the performance appraisal system facilitate to increase your self development? a) Yes [ ]
b) No [ ]
b) If yes, at what level the performance system is helpful your self development? a) Very high [ ]
b) High [ ]
c) Moderate [ ]
d) Poor [ ]
12. a) Are the employees, undertake any programmer to improve their performance? a) Yes [ ]
b) No [ ]
b) If yes, what kind of programmer to improve the performance have undertaken by the employees themselves. a) Quality circle
[ ]
b) Group discussion
c) Course undertaken [ ]
[ ]
d) Seminar Conference [ ]
13. Are you given feedback, once the appraisal is completed? Yes
[ ]
No
[ ]
14. In what way this feedback helps you to perform effectively? a) Helps in knowing ones own potential
[ ]
b) Helps to get proper guidance from superior [ ] c) Increases productivity
[ ]
d) Sense of recognition
[ ]
e) Others ---------------------------------------------------------15. Specify your satisfaction level regarding the performance appraisal system carried out in your oraganisation? a) Highly satisfied
[ ]
b) satisfied
[
]
c) Moderate
[ ]
d) Dissatisfied
[
]
e) Highly dissatisfied
[ ]
16. At low performance level, how does your organization improve the performance level of the employee? a) By advice
[ ]
c) By punishment [ ]
b) By training
[ ]
d) By rules & regulation [ ]
17. suggestions ----------------------------------------------------------------------------------------------------
ANNEXURE II BIBILIOGRAPHY
BOOKS •
Dr. C. B. Gupta, Human Resource Management, Sultan Chand& Sons, Educational Publishers, New Delhi.
•
C.R.Kothari, Research Methodology Methods & Techniques, New Age International Publishers.
WEBSITE •
www.performance apprasial.com
•
www.answers.com
•
www.manatec.net