a study on“performance appraisal at - New Horizon College of ...

A STUDY ON“PERFORMANCE APPRAISAL AT

FUTURE LIFESTYLE FASHIONS LIMITED WITH

REFERENCE TO CENTRAL-3 BELLANDUR”

Submitted to

Bangalore University

In partial fulfilment of the requirements for the award of

degree of Bachelors of Business Management

By

LAKSHMI SURESH

(13VFC24049)

Under the Guidance of

Mrs. SABEENA SHARON

NEW HORIZON COLLEGE

BANGALORE

2015-2016

STUDENT DECLARATION

I hereby declare that this project entitled “A study on performance

appraisal at FLF with reference to Central-3 Bellandur” was prepared

by me during the year 2015-2016 and was submitted in partial fulfilment

of the requirements for the award of degree in Business Management of

Bangalore University.

I also declare that this project report is original and genuine and has not

been submitted to any other University for the award of any degree,

diploma or other similar titles or purposes.

Date: LAKSHMI SURESH

Bangalore 13VFC24049

ACKNOWLEDGEMENT

First and foremost I would like to express my profound gratitude and regards to our respected

chairman Dr. Mohan Manghnani and my sincere gratitude towards DR. R. BODHISATVAN

Principal of NEW HORIZON COLLEGE for providing me the opportunity to conduct the

research project.

I also express my deep sense of gratitude to MRS. PRASANNA PRAKASH Head Of The

Department, BBM for her kind affection, constant help and encouragement during my

project.

I express my sincere thanks and Gratitude to my project guide MRS.SABEENA SHARON,

who has been a constant source of inspiration and guidance for me. Her pragmatic approach,

patience, ingenuity, valuable guidance, timely advice and steady cooperation where

instrumental in completing this work on time.

I would like to thank SAWAN KUMAR SAHU Department Manager of FLFL Central-3

Bellandur for allowing me to undertake this study and for giving me enough access to the

information required to complete the study. I would like to thank each and every of the

Future lifestyle Fashions for helping me whenever required and making my project truly

memorable.

Last but not least I would like to express a sense of gratitude to the Almighty, my parents,

brother and friends for their constant encouragement without which the project would have

not been completed.

BANGALORE LAKSHMI SURESH

(13VFC24049)

CONTENTS

CHAPTER

NUMBER

TOPIC

PAGE

NUMBER

1 INTRODUCTION

1.1 INTRODUCTION TO HRM

1.2 INTRODUCTION TO TOPIC

1-19

1-8

9-19

2. 2.1 INDUSTRY PROFILE

2.2 COMPANY PROFILE

20-25

26-36

3. RESEARCH DESIGN 37-41

4. ANALYSIS AND INTERPRETATION 42-67

5. SUMMARY OF FINDINGS 68-69

6. SUGGESTIONS AND CONCLUSIONS 70-71

BIBLIOGRPAHY 72

ANNEXURE 73-75

LIST OF TABLES

TABLE

NUMBER

CONTENT PAGE

NUMBER

4.1 TABLE REPRESENTING THE WORK EXPERIENCE OF THE

EMPLOYEES

42

4.2 TABLE REPRESENTING THE AWARENESS OF THE EMPLOYEES

ABOUT PERFORMANCE APPRAISAL PROCESS

44

4.3 TABLE REPRESENTING THE AWARENESS OF EMPLOYEES ABOUT

THEIR ROLES AND RESPONSIBILITES OF THEIR JOB

46

4.4 TABLE REPRESENTING THE OPINION OF EMPLOYEES ABOUT

PERFORMANCE APPRISAL

48

4.5 TABLE REPRESENTING THE TIME INTERVALS OF

PERFORMANCE APPRAISAL OF EMPLOYEES

50

4.6 TABLE REPRESENTING THE OPINION OF EMPLOYEES

REGARDING THE ONE TO ONE SESSION CONDUCTED

EVERYMONTH

52

4.7 TABLE REPRESENTING THE METHOD USED BY THE COMPANY

TO APPRAISE THE EMPLOYEES

54

4.8. TABLE REPRESENTING THE OPINION OF EMPLOYEES IN

IMPOVING THEIR KNOWLEDGE BY APRRAISAL SYSTEM

56

4.9 TABLE REPRESENTING THE SKILLS DEVELOPED BY EMPLOYEES

IN THEIR PERFORMANCE AREA

58

4.10 TABLE ILLUSTRATING THE OPINION OF EMPLOYEES ON THE

HEALTHY COMPETITION WHICH THE APPRAISAL SYSTEM

GENERATES

60

4.11 TABLE ILLUSTRATING THE INCREMENT OBTAINED BY THE

EMPLOYEES IN THEIR SALARY

62

4.12 TABLE ILLUSTRATING THE EMPLOYEES OPINION WHETHER

THERE IS A FEEDBACK AFTER THE APPRAISAL SYSTEM

64

4.13 TABLE ILLUSTRATING THE DETAILS OF HOW THE FEEDBACK

MOTIVATES THE EMPLOYEES

66

LIST OF GRAPHS

GRAPH

NUMBER

CONTENT PAGE

NUMBER

4.1 GRAPH REPRESENTING THE WORK EXPERIENCE OF THE

EMPLOYEES

43

4.2 GRAPH REPRESENTING THE AWARENESS OF THE EMPLOYEES

ABOUT PERFORMANCE APPRAISAL PROCESS

45

4.3 GRAPH REPRESENTING THE AWARENESS OF EMPLOYEES

ABOUT THEIR ROLES AND RESPONSIBILITES OF THEIR JOB

47

4.4 GRAPH REPRESENTING THE OPINION OF EMPLOYEES ABOUT

PERFORMANCE APPRISAL

49

4.5 GRAPH REPRESENTING THE TIME INTERVALS OF

PERFORMANCE APPRAISAL OF EMPLOYEES

51

4.6 GRAPH REPRESENTING THE OPINION OF EMPLOYEES

REGARDING THE ONE TO ONE SESSION CONDUCTED

EVERYMONTH

53

4.7 GRAPH REPRESENTING THE METHOD USED BY THE COMPANY

TO APPRAISE THE EMPLOYEES

55

4.8 GRAPH REPRESENTING THE OPINION OF EMPLOYEES IN

IMPOVING THEIR KNOWLEDGE BY APRRAISAL SYSTEM

57

4.9 GRAPH REPRESENTING THE SKILLS DEVELOPED BY

EMPLOYEES IN THEIR PERFORMANCE AREA

59

4.10 GRAPH ILLUSTRATING THE OPINION OF EMPLOYEES ON THE

HEALTHY COMPETITION WHICH THE APPRAISAL SYSTEM

GENERATES

61

4.11 GRAPH ILLUSTRATING THE INCREMENT OBTAINED BY THE

EMPLOYEES IN THEIR SALARY

63

4.12 GRAPH ILLUSTRATING THE EMPLOYEES OPINION WHETHER

THERE IS A FEEDBACK AFTER THE APPRAISAL SYSTEM

65

4.13 GRAPH ILLUSTRATING THE DETAILS OF HOW THE FEEDBACK

MOTIVATES THE EMPLOYEES

67

EXECUTIVE SUMMARY

This project is based on the “Performance Appraisal system” prevalent at M/S Future

Lifestyle Fashion Limited. Future Lifestyle Fashions Ltd. or FLF is a wholly owned

subsidiary of Future Group which offers a strong portfolio of own brand and licensed brand

merchandise to the middle class and upper class customers across India as an organised retail

body. FLF aims to unite fast growing fashion brands having a strong distribution network,

under a single entity. FLF is a unique player in the fashion industry that is primed to gain

leadership in building both fashion brands and fashion retailing in India. This study was

conducted at CT-Soul Space (Central Mall Bellandur Bangalore).

The study about the appraisal system was conducted by thorough review of the performance

appraisal system. Interviews were conducted with the HR organization and the line managers

to draw conclusion about the existing appraisal system. The organisation has about 300

regular employees and the survey was conducted with active participation of 100 employees.

Accordingly a method of study by means of survey with the employees were designed.

Various amendments were to be made during the design of survey based on the line managers

feedback with regard to their employees education level and language proficiency.

The survey was rolled out with the consent of HR organization and was supported fully by

the line managers. Awareness levels of the appraisal process was fully analysed and

conclusions were drawn. Accordingly suggestions for improvement and analysis summary

are listed in the project report.

CHAPTER -1

INTRODUCTION

CHAPTER-2

INDUSTRY

AND

COMPANY

PROFILE

CHAPTER-3

RESEARCH

DESIGN

CHAPTER-4

ANALYSIS AND

INTERPRETATION

CHAPTER-5

SUMMARY OF

FINDINGS

CHAPTER- 6

SUGGESTIONS

AND

CONCLUSIONS

BIBLIOGRAPHY

ANNEXURE

FUTURE LIFESTYLE FASHIONS

New Horizon College Page 1

1.1 INTRODUCTION TO HRM

HUMAN RESOURCES

Human resources (HR) is the company department charged with finding, screening, recruiting

and training job applicants, as well as administering employee-benefit programs.

As companies reorganize to gain competitive edge, human resources plays a key role in

helping companies deal with a fast-changing competitive environment and the greater demand

for competence of employees. Research conducted by The Conference Board has found six

key people-related activities that human resources completes to add value to a company:

1. Effectively managing and utilizing people.

2. Trying performance appraisal and compensation to competencies.

3. Developing competencies that enhance individual and organizational performance.

4. Increasing the innovation, creativity and flexibility necessary to enhance competitiveness.

5. Applying new approaches to work process design, succession planning, career development

and inter-organizational mobility.

6. Managing the implementation and integration of technology through improved staffing,

training and communication with employees.

MANAGEMENT

The organization

and coordination ofthe activities ofa business in order to achieve defined objectives.Manage is

often included as a factor of production along with machines, materials, and money.

According to the management guru Peter Drucker (1909-2005), the basic task of management

includes both marketing and innovation. Practice of modern management to originate from the

16th century study of low-efficiency and failures of certain enterprises, conducted by the

English statesman Sir ThomasMore (14781535).

http://www.investopedia.com/terms/c/conferenceboard.asp

http://www.investopedia.com/terms/p/performance-appraisal.asp-0/

http://www.investopedia.com/terms/s/succession-planning.asp

http://www.businessdictionary.com/definition/coordination.html

http://www.businessdictionary.com/definition/activity.html

http://www.businessdictionary.com/definition/business.html

http://www.businessdictionary.com/definition/order.html

http://www.businessdictionary.com/definition/achieve.html

http://www.businessdictionary.com/definition/objective.html

http://www.businessdictionary.com/definition/factor.html

http://www.businessdictionary.com/definition/production.html

http://www.businessdictionary.com/definition/machine.html

http://www.businessdictionary.com/definition/material.html

http://www.businessdictionary.com/definition/Peter-Drucker.html

http://www.businessdictionary.com/definition/task.html

http://www.businessdictionary.com/definition/marketer.html

http://www.businessdictionary.com/definition/innovation.html

http://www.businessdictionary.com/definition/practice.html

http://www.businessdictionary.com/definition/study.html

http://www.businessdictionary.com/definition/failure.html

http://www.businessdictionary.com/definition/enterprise.html

http://www.businessdictionary.com/definition/Sir-Thomas-More.html



HUMAN RESOURCE MANAGEMENT

Human resource management (HRM, or simply HR) is a function in organizations designed to

maximize employee performance in service of an employer's strategic objectives. HR is

primarily concerned with the management of people within organizations, focusing

on policies and on systems.HR departments and units in organizations typically undertake a

number of activities, including employee benefits design employee recruitment, "training and

development", performance appraisal, and rewarding (e.g., managing pay and benefit

systems).HR also concerns itself with industrial relations, that is, the balancing of

organizational practices with requirements arising from collective bargaining and from

governmental laws. According to R. Buttoner, HRM covers the following core areas:

Job design and analysis,

Workforce planning,

Recruitment and selection,

Training and development,

Performance management,

Compensation (remuneration),

Legal issues.

DEFINITION AND MEANING OF HUMAN RESOURCE

MANAGEMENT

Human resource is not only unique and valuable, but it is also an organizations most important

resource. It seems logical that an organization would expend a great deal of effort to acquire

and make full use of such a resource. This effort is known as human resource management

which was earlier termed as staffing personnel management.

Basically, Managers get things done through the efforts of others,

this requires effective HRM. Thus managers at every level must concern themselves with

HRM.

According to Invancevich and Glueck, “HRM is concerned with the most effective use of

people to achieve organizational and individual goals.”

According to Byars and Rue, “HRM encompasses those activities that are designed to provide

for and coordinate the human resources of an organization.”

https://en.wikipedia.org/wiki/Employee_performance_management

https://en.wikipedia.org/wiki/Policy

https://en.wikipedia.org/wiki/System

https://en.wikipedia.org/wiki/Employee_benefits

https://en.wikipedia.org/wiki/Recruitment

https://en.wikipedia.org/wiki/Training_and_development



https://en.wikipedia.org/wiki/Performance_appraisal

https://en.wikipedia.org/wiki/Industrial_relations

https://en.wikipedia.org/wiki/Job_design

https://en.wikipedia.org/wiki/Workforce_planning

https://en.wikipedia.org/wiki/Recruitment


https://en.wikipedia.org/wiki/Performance_management

https://en.wikipedia.org/wiki/Remuneration

https://en.wikipedia.org/wiki/Labour_law



According to Flippo, “Human resource management is the planning, organising, directing, and

controlling the procurement, development, compensation, integration, maintenance and

separation of human resources to the end of individual, organizational, and social objectives

are accomplished”.

FEATURES OF HRM

Human Resource management is a process and philosophy of acquisition, development,

utilization, and maintenance of competent human force to achieve goals of an organization in

an efficient and effective manner.

Concept of HRM contains two versions – the hard version and the soft version. The hard

version or variant emphasizes the need to manage people in ways that will obtain added value

from them and thus achieve competitive advantage.

On the other hand, soft version is concerned with treating employees as valued assets, a source

of competitive advantage through their commitment, adaptability and high quality. Today’s

HRM is a combination of both the versions. HRM is management of human energy and

capabilities.

OBJECTIVES OF HRM

1. It is an art and a science:

The art and science of HRM is indeed very complex. HRM is both the art of managing people

by recourse to creative and innovative approaches; it is a science as well because of the

precision and rigorous application of theory that is required.

2. It is pervasive:

Development of HRM covers all levels and all categories of people, and management and

operational staff. No discrimination is made between any levels or categories. All those who

are managers have to perform HRM. It is pervasive also because it is required in every

department of the organisation. All kinds of organisations, profit or non-profit making, have to

follow HRM.



3. It is a continuous process:

First, it is a process as there are number of functions to be performed in a series, beginning

with human resource planning to recruitment to selection, to training to performance appraisal.

To be specific, the HRM process includes acquisition (HR planning, recruitment, selection,

placement, socialisation), development (training and development, and career development),

utilisation (job design, motivation, performance appraisal and reward management), and

maintenance (labour relations, employee discipline, grievance handling, welfare, and

termination). Second, it is continuous, because HRM is a never-ending process.

4. HRM is a service function:

HRM is not a profit centre. It serves all other functional departments. But the basic

responsibility always lies with the line managers. HRM is a staff function – a facilitator. The

HR Manager has line authority only within his own department, but has staff authority as far

as other departments are concerned.

5. HRM must be regulation-friendly:

The HRM function has to be discharged in a manner that legal dictates are not violated. Equal

opportunity and equal pay for all, inclusion of communities in employment, inclusion of

tribal’s (like Posco or Vedanta projects) and farmers in the benefits and non-violation of

human rights must be taken care of by the HRM.

6. Interdisciplinary and fast changing:

It is encompassing welfare, manpower, personnel management, and keeps close association

with employee and industrial relations. It is multidisciplinary activity utilising knowledge

and inputs from psychology, sociology, economics, etc. It is changing itself in accordance with

the changing environment. It has travelled from exploitation of workers to treating them as

equal partners in the task.

7. Focus on results:

HRM is performance oriented. It has its focus on results, rather than on rules. It encourages

people to give their 100%. It tries to secure the best from people by winning the whole hearted



cooperation. It is a process of bringing people and organization together so that the goals of

each are met. It is commitment oriented.

8. People-centred:

HRM is about people at work both as individuals and a group. It tries to help employees to

develop their potential fully. It comprises people-related functions like hiring, training and

development, performance appraisal, working environment, etc. HRM has the responsibility of

building human capital. People are vital for achieving organizational goals. Organizational

performance depends on the quality of people and employees.

9. Human relations philosophy:

HRM is a philosophy and the basic assumption is that employees are human beings and not a

factor of production like land, labour or capital. HRM recognises individuality and individual

differences. Every manager to be successful must possess social skills to manage people with

differing needs.

10. An integrated concept:

HRM in its scope includes Personnel aspect, Welfare aspect and Industrial relations aspect in

itself. It is also integrated as it concern with not only acquisition, but also development,

utilisation, and maintenance.



FUNCTIONS OF HRM

Following are the various functions of Human Resource Management that are essential for the

effective functioning of the organization:

1. Recruitment

2. Selection

3. Induction

4. Performance Appraisal

5. Training & Development

1. Recruitment

The process of recruitment begins after manpower requirements are determined in terms of

quality through job analysis and quantity through forecasting and planning.

2. Selection

The selection is the process of ascertaining whether or not candidates possess the requisite

qualifications, training and experience required

3. Induction

a) Induction is the process by which a new employee is rehabilitated into the changed

surroundings and introduced to the practices, policies and purposes of the organization.

NATURE OF HRM

Human Resource Management is a process of bringing people and organizations together so

that the goals of each are met. The various features of HRM include:

• It is pervasive in nature as it is present in all enterprises.

• Its focus is on results rather than on rules.

• It tries to help employees develop their potential fully.

• It encourages employees to give their optimum output to the organization.

• It is all about people at work, both as individuals and groups.



• It tries to put people on assigned jobs in order to produce good results.

• It helps an organization meet its goals in the future by providing for competent and well-

motivated employees.

• It tries to build and maintain cordial relations between people working at various levels in the

organization.

• It is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology,

economics, etc.

SCOPE OF HRM

The scope of HRM is very wide:

1. Personnel aspect-This is concerned with manpower planning, recruitment, selection,

placement, transfer, promotion, training and development, layoff and retrenchment,

remuneration, incentives, productivity etc.

2. Welfare aspect-It deals with working conditions and amenities such as canteens, creches,

rest and lunch rooms, housing, transport, medical assistance, education, health and safety,

recreation facilities, etc.

3. Industrial relations aspect-This covers union-management relations, joint consultation,

collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.

FUTURE VISION OF HRM

On the basis of the various issues and challenges the following suggestions will be of much

help to the philosophy of HRM with regard to its futuristic vision:

1.There should be a properly defined recruitment policy in the organization that should give its

focus on professional aspect and merit based selection.

2. In every decision-making process there should be given proper weightage to the aspect that

employees are involved wherever possible. It will ultimately lead to sense of team spirit, team-

work and inter-team collaboration.

3. Opportunity and comprehensive framework should be provided for full expression of

employees’ talents and manifest potentialities.



4. Networking skills of the organizations should be developed internally and externally as well

as horizontally and vertically.

5. For performance appraisal of the employee’s emphasis should be given to 360 degree

feedback which is based on the review by superiors, peers, subordinates as well as self-

assessment.

6. 360 degree feedback will further lead to increased focus on customer services, creating of

highly involved workforce, decreased hierarchies, avoiding discrimination and biases and

identifying performance threshold.

7. More emphasis should be given to Total Quality Management. TQM will cover all

employees at all levels; it will conform to customer’s needs and expectations; it will ensure

effective utilization of resources and will lead towards continuous improvement in all spheres

and activities of the organization.

8. There should be focus on job rotation so that vision and knowledge of the employees are

broadened as well as potentialities of the employees are increased for future job prospects.

9. For proper utilization of manpower in the organization the concept of six sigma of

improving productivity should be intermingled in the HRM strategy.

10. The capacities of the employees should be assessed through potential appraisal for

performing new roles and responsibilities. It should not be confined to organizational aspects

only but the environmental changes of political, economic and social considerations should

also be taken into account.

11. The career of the employees should be planned in such a way that individualizing process

and socializing process come together for fusion process and career planning should constitute

the part of human resource planning.

To conclude Human Resource Management should be linked with strategic goals and

objectives in order to improve business performance and develop organizational cultures that



foster innovation and flexibility. All the above futuristic visions coupled with strategic goals

and objectives should be based on 3 H’s of Heart, Head and Hand i.e., we should feel by

Heart, think by Head and implement by Hand.

OBJECTIVES OF HRM

• To help the organization reach its goals.

• To ensure effective utilization and maximum development of human resources.

• To ensure respect for human beings. To identify and satisfy the needs of individuals.

• To ensure reconciliation of individual goals with those of the organization.

• To achieve and maintain high morale among employees.

• To provide the organization with well-trained and well-motivated employees.

• To increase to the fullest the employee’s job satisfaction and self-actualization.

• To develop and maintain a quality of work life.

• To be ethically and socially responsive to the needs of society.

• To develop overall personality of each employee in its multidimensional aspect.

• To enhance employee’s capabilities to perform the present job.

• To equip the employees with precision and clarity in transaction of business.

• To inculcate the sense of team spirit, team work and inter-team collaboration



1.2 INTRODUCTION TO PERFORMANCE APPRAISAL

1. Meaning of performance appraisal:

A performance appraisal is a systematic and periodic process that assesses an

individual employee's job performance and productivity in relation to certain pre-established

criteria and organizational objectives

2. Definition of performance appraisal:

According to the Professor of Management, Sir Wayne Cascio “Performance appraisal is the

systematic description of an employee’s job relevant strength and weaknesses”.

3. Benefits of Performance appraisal:

1. Motivation and Satisfaction

Performance appraisal can have a profound effect on levels of employee motivation and

satisfaction - for better as well as for worse

Performance appraisal provides employees with recognition for their work efforts. The

power of social recognition as an incentive has been long noted. In fact, there is evidence

that human beings will even prefer negative recognition in preference to no recognition at

all.

If nothing else, the existence of an appraisal program indicates to an employee that the

organization is genuinely interested in their individual performance and development. This

alone can have a positive influence on the individual's sense of worth, commitment and

belonging.

The strength and prevalence of this natural human desire for individual recognition should

not be overlooked. Absenteeism and turnover rates in some organizations might be greatly

reduced if more attention were paid to it. Regular performance appraisal, at least, is a good

start.

2. Training and Development

Performance appraisal offers an excellent opportunity - perhaps the best that will ever occur -



for a supervisor and subordinate to recognize and agree upon individual training and

development needs.

During the discussion of an employee's work performance, the presence or absence of work

skills can become very obvious - even to those who habitually reject the idea of training

for them.

Performance appraisal can make the need for training more pressing and relevant by linking

it clearly to performance outcomes and future career aspirations.

From the point of view of the organization as a whole, consolidated appraisal data can form a

picture of the overall demand for training. This data may be analysed by variables such as sex,

department, etc. In this respect, performance appraisal can provide a regular and efficient

training needs audit for the entire organization.

3. Recruitment and Induction

Appraisal data can be used to monitor the success of the organization's recruitment and

induction practices. For example, how well are the employees performing who were hired in

the past two years?

Recruitment strategies. By following the yearly data related to new hires (and given sufficient

numbers on which to base the analysis) it is possible to assess whether the general quality of

the workforce is improving, staying steady, or declining.

4. Employee Evaluation

Though often understated or even denied, evaluation is a legitimate and major

objective of performance appraisal.

But the need to evaluate (i.e., to judge) is also an ongoing source of tension, since evaluative

and developmental priorities appear to frequently clash. Yet at its most basic level,

performance appraisal is the process of examining and evaluating the performance of an

individual.

Though organizations have a clear right - some would say a duty - to conduct such

evaluations of performance, many still recoil from the idea. To them, the explicit process of

judgement can be dehumanizing and demoralizing and a source of anxiety and distress to

employees.



It is said by some that performance appraisal cannot serve the needs of evaluation and

development at the same time; it must be one or the other.

But there may be an acceptable middle ground, where the need to evaluate employees

objectively, and the need to encourage and develop them, can be balanced.

4. Factors influencing performance appraisal:

a) Performance

The appraisal of an employee is directly dependent on the performance that he has shown

over a period of time. Every business wants to maximize its profits and depends upon the

collective effort of its employees to achieve it. If certain employees perform up and above

the expectations and help the company to achieve better results, the organization would

appreciate their efforts and give them a raise in their salary. However, employees who have

not performed to their full potential and have not led to any major contribution to the

company may not find any such favours from the organization.

b) Teamwork

The way you behave in your office also has a huge impact on the appraisal process. If you are

known as a team player and help your colleagues to improve their performance, it is highly

likely that the organization would recognize your efforts and reward you handsomely. This is

one of the prime reasons that some employees whose performance has not been exceptional

still manage to have a healthy raise in their appraisals. On the other hand, if you are someone

who spreads rumours and negativity in the workplace, there is a possibility that you would

have a tough time during your appraisals

c) Attendance and Punctuality

While it is OK to take a day off once in a while, but frequent absenteeism can hamper your

appraisal. Once you start calling in sick, your managers develop a negative perception which

is hard to shed. Tardiness on your part can also affect your appraisal as an organizations put

this to intense scrutiny. Various surveys have found that 'average' employees who have lesser

absenteeism and are punctual get more favours from the managers, and this is one of the

important factors that plays a part during your appraisal.

d) Assertiveness/Motivation

Assertiveness and motivation are important characteristics that every organization looks

forward to in their employees. Employees who go about their jobs with vigour and excitement,



take initiatives and show a desire to perform exceptionally are looked upon highly by the

managers. Employees with a positive attitude and self-belief are respected by the organization

and are likely to be rewarded for their efforts.

e) Process Knowledge

A friend of mine was disappointed when she came to know that her colleague had been

awarded a higher rating than her, even though she had generated more sales. She was in a

dilemma for a few days before her manager sensed the situation and decided to have a word

with her so that there is no ambiguity. He told her that, the reason she was not able to get a

very good rating was because she lacked process knowledge. Ignorance about your products

can hamper your customer experience besides marring the reputation of your company. When

you do not know enough about your products, it is difficult to convince the customers about

the benefits that they will derive from it.

f) Organizational Skills

Organizational skills reflect to your managers that you know how to prioritize your more

important tasks. A well-organized employee is always ready for any additional responsibilities

and the managers can trust him for his ability to get something done. Organizational skill is an

important attribute and plays an important part in the appraisal process.

g) Customer Service

If you are someone who has generated a lot of revenue for your company at the cost of your

customer service, then there is a likelihood that your managers would not be able to rely on

you, and your relationship with them would be marked by a trust-deficit. Customer complaints

are crucial for an organization and can also result in a possible disciplinary action being taken

against you.

h) Appearance

The way you dress up to office also plays an important part in determining the course of your

appraisal process. Employees who are presentable are more likely to create a positive image in

the minds of managers than employees who are dishevelled and do not dress up poorly to

office.

i) Biased Managers

These factors are disadvantageous for an organization and promote ill-will and negativity in an

organization. Managers sometimes show bias towards employees with whom they have a



friendly relationship as compared to those who are just acquaintances. This creates nepotism

and negativity in the workplace and hampers the morale of hard-working employees.

METHODS OF PERFORMANCE APPRAISAL

Numerous methods have been devised to measure the quantity and quality of performance

appraisals. Each of the methods is effective for some purposes for some organizations only.

None should be dismissed or accepted as appropriate except as they relate to the particular

needs of the organization or an employee.

Broadly all methods of appraisals can be divided into two different categories.

Past Oriented Methods

Future Oriented Methods

Past Oriented Methods

1. Rating Scales: Rating scales consists of several numerical scales representing job

related performance criterions such as dependability, initiative, output, attendance, attitude etc.

Each scales ranges from excellent to poor. The total numerical scores are computed and final

conclusions are derived. Advantages – Adaptability, easy to use, low cost, every type of job

can be evaluated, large number of employees covered, no formal training required.

Disadvantages – Rater’s biases

2. Checklist: Under this method, checklist of statements of traits of employee in the form

of Yes or No based questions is prepared. Here the rater only does the reporting or checking

and HR department does the actual evaluation. Advantages – economy, ease of administration,

limited training required, standardization. Disadvantages – Raters biases, use of improper

weighs by HR, does not allow rater to give relative ratings

3. Forced Choice Method: The series of statements arranged in the blocks of two or

more are given and the rater indicates which statement is true or false. The rater is forced to

make a choice. HR department does actual assessment. Advantages – Absence of personal

biases because of forced choice. Disadvantages – Statements may be wrongly framed.



4. Forced Distribution Method: here employees are clustered around a high point

on a rating scale. Rater is compelled to distribute the employees on all points on the scale. It is

assumed that the performance is conformed to normal distribution. Advantages – Eliminates

Disadvantages – Assumption of normal distribution, unrealistic, errors of central tendency.

5. Critical Incidents Method: The approach is focused on certain critical

behaviours of employee that makes all the difference in the performance. Supervisors as and

when they occur record such incidents. Advantages – Evaluations are based on actual job

behaviours, ratings are supported by descriptions, feedback is easy, reduces recency biases,

chances of subordinate improvement are high. Disadvantages – Negative incidents can be

prioritized, forgetting incidents, overly close supervision; feedback may be too much and may

appear to be punishment.

6. Behaviourally Anchored Rating Scales: statements of effective and

ineffective behaviours determine the points. They are said to be behaviourally anchored. The

rater is supposed to say, which behaviour describes the employee performance. Advantages –

helps overcome rating errors. Disadvantages – Suffers from distortions inherent in most rating

techniques.

7. Field Review Method: This is an appraisal done by someone outside employees’

own department usually from corporate or HR department. Advantages – Useful for

managerial level promotions, when comparable information is needed, Disadvantages –

Outsider is generally not familiar with employees work environment, Observation of actual

behaviours not possible.

8. Performance Tests & Observations: This is based on the test of knowledge

or skills. The tests may be written or an actual presentation of skills. Tests must be reliable and

validated to be useful. Advantage – Tests may be apt to measure potential more than actual

performance. Disadvantages – Tests may suffer if costs of test development or administration

are high.

7. Confidential Records: Mostly used by government departments, however its

application in industry is not ruled out. Here the report is given in the form of Annual

Confidentiality Report (ACR) and may record ratings with respect to following items;



attendance, self expression, team work, leadership, initiative, technical ability, reasoning

ability, originality and resourcefulness etc. The system is highly secretive and confidential.

Feedback to the assessee is given only in case of an adverse entry. Disadvantage is that it is

highly subjective and ratings can be manipulated because the evaluations are linked to HR

actions like promotions etc.

10. Essay Method: In this method the rater writes down the employee description in

detail within a number of broad categories like, overall impression of performance, promote

ability of employee, existing capabilities and qualifications of performing jobs, strengths and

weaknesses and training needs of the employee. Advantage – It is extremely useful in filing

information gaps about the employees that often occur in a better-structured checklist.

Disadvantages – It its highly dependent upon the writing skills of rater and most of them are

not good writers. They may get confused success depends on the memory power of raters.

11. Cost Accounting Method: Here performance is evaluated from the monetary

returns yields to his or her organization. Cost to keep employee, and benefit the organization

derives is ascertained. Hence it is more dependent upon cost and benefit analysis.

12. Comparative Evaluation Method (Ranking & Paired

Comparisons): These are collection of different methods that compare performance with

that of other co-workers. The usual techniques used may be ranking methods and paired

comparison method.

Ranking Methods: Superior ranks his worker based on merit, from best to worst. However

how best and why best are not elaborated in this method. It is easy to administer and

explanation.

Paired Comparison Methods: In this method each employee is rated with another employee

in the form of pairs. The number of comparisons may be calculated with the help of a formula

as under.

N x (N-1) / 2



Future Oriented Methods

1. Management by Objectives: It means management by objectives and the performance is

rated against the achievement of objectives stated by the management. MBO process goes as

under.

Establish goals and desired outcomes for each subordinate

Setting performance standards

Comparison of actual goals with goals attained by the employee

Establish new goals and new strategies for goals not achieved in previous year.

Advantage – It is more useful for managerial positions.

Disadvantages – Not applicable to all jobs, allocation of merit pay may result in setting short-

term goals rather than important and long-term goals etc.

2. Psychological Appraisals: These appraisals are more directed to assess employees

potential for future performance rather than the past one. It is done in the form of in-depth

interviews, psychological tests, and discussion with supervisors and review of other

evaluations. It is more focused on employees emotional, intellectual, and motivational and

other personal characteristics affecting his performance. This approach is slow and costly and

may be useful for bright young members who may have considerable potential. However

quality of these appraisals largely depend upon the skills of psychologists who perform the

evaluation.

3. Assessment Centres: This technique was first developed in USA and UK in 1943. An

assessment centre is a central location where managers may come together to have their

participation in job related exercises evaluated by trained observers. It is more focused on

observation of behaviours across a series of select exercises or work samples. Assesses are

requested to participate in in-basket exercises, work groups, computer simulations, role

playing and other similar activities which require same attributes for successful performance

in actual job. The characteristics assessed in assessment centre can be assertiveness,

persuasive ability, communicating ability, planning and organizational ability, self-confidence,

resistance to stress, energy level, decision making, sensitivity to feelings, administrative

ability, creativity and mental alertness etc. Disadvantages – Costs of employees traveling and

lodging, psychologists, ratings strongly influenced by assesses inter-personal skills. Solid



performers may feel suffocated in simulated situations. Those who are not selected for this

also may get affected.

Advantages – well-conducted assessment centre can achieve better forecasts of future

performance and progress than other methods of appraisals. Also reliability, content validity

and predictive ability are said to be high in assessment centres. The tests also make sure that

the wrong people are not hired or promoted. Finally it clearly defines the criteria for selection

and promotion.

1. 360-Degree Feedback: It is a technique which is systematic collection of performance data on

an individual group, derived from a number of stakeholders like immediate supervisors, team

members, customers, peers and self. In fact anyone who has useful information on how an

employee does a job may be one of the appraisers. This technique is highly useful in terms of

broader perspective, greater self-development and multi-source feedback is useful. 360-degree

appraisals are useful to measure inter-personal skills, customer satisfaction and team building

skills. However on the negative side, receiving feedback from multiple sources can be

intimidating, threatening etc. Multiple raters may be less adept at providing balanced and

objective feedback.

Advantages of performance appraisals:

They provide a document of employee performance over a specific period of time.

They provide a structure where a manager can meet and discuss performance with an

employee.

They allow a manager the opportunity to provide the employee with feedback about their

performance and discuss how well the employee goals were accomplished.

They provide a structured process for an employee to clarify expectations and discuss issues

with their manager.

They provide a structure for thinking through and planning the upcoming year and developing

employee goals.

They can motivate employees if supported by a good merit increase and compensation system.

http://thethrivingsmallbusiness.com/example-of-employee-goals/

http://thethrivingsmallbusiness.com/what-should-merit-raises-be-based-on/



Disadvantages of performance appraisals:

If not done right, they can create a negative experience.

Performance appraisals are very time consuming and can be overwhelming to managers with

many employees.

They are based on human assessment and are subject to rater errors and biases.

Can be a waste of time if not done appropriately.

They can create a very stressful environment for everyone involved.

Why do organizations do performance appraisals?

There are many varying opinions on the subject of performance appraisals and why they are

done. Some organizations do performance appraisals because they feel obligated to do them –

because everyone else does.

Some organizations do performance appraisals to make sure they have a piece of paper in the

employee’s file in case they ever need to do corrective action.

But successful organizations understand the importance of incorporating performance

appraisals into their performance management process and strategy.

http://www.thethrivingsmallbusiness.com/performance-appraisals-rater-errors/

http://www.thethrivingsmallbusiness.com/what-are-the-advantages-and-disadvantages-of-performance-management/



PROCESS OF PERFORMANCE APPRAISAL



2.1 COMPANY PROFILE

FUTURE GROUP

Future group was founded by Mr. Kishore Biyani in the year 1987 in India and since then over

the years of constant leadership under Mr. Biyani who is also called as the “Retail King of

India”, the Group has emerged to the leading business house with multiple businesses

spanning across India. The group operates over 12 MillionSq.ft of retail space in 71 cities and

towns and 65 rural locations across India. Headquartered in Mumbai, it employees around

30000 people and is listed on the Indian Stock Exchanges. The company follows a multi

format retail strategy that captures almost the entire consumption basket of Indian customers.

The groups speciality retail formats includes books and music chain, Planet sports, Electronics

retailer , home improvement chain, home town among others, it also operates popular

shopping portal future.bazar.com. The groups presents in leisure and entertainment segment

lead through, Mumbai based listed company Galaxy entertainment limited. Galaxy is leading

leisure chains, sports bars and family entertainment centres. Through its partner company, blue

foods the group operates about 100 restaurants and food courts through brands like Bombay

blues, Spaghetti kitchen, the spoon, copper chimney etc.

FUTURE LIFESTYLE FASHIONS LTD

Future Lifestyle Fashions Ltd. or FLF is a wholly owned subsidiary of Future Group which

offers a strong strong portfolio of own brand and licensed brand merchandise to the middle

class and upper class customers across India as an organised retail body. FLF aims to unite fast

growing fashion brands having a strong distribution network, under a single entity. FLF is a

unique player in the fashion industry that is primed to gain leadership in building both fashion

brands and fashion retailing in India.

FLF has four formats which are Brand Factory, Planet sports, I Am in and Central, which is

the flagship retail format of FLF. Brand Factory offers more than 200 domestic and

international brands at affordable prices for cost conscious youth. Planet sports has been

awarded as India’s leading multi-brand sportswear and sports goods speciality chain. Planet

sports is one-stop destination for the latest global trends in the ports segment offering apparel,

footwear, sports-wear, equipment and accessories. This format is majorly concentrated around

Tire 1 and Tire 2 cities. “I Am In” caters to enthusiastic Gen Next crowd who are in know-



how of latest fashion trends and happening. Brand new concept by Future Lifestyle Fashion,

“I Am In” appeals to consumers who are fashionable, stylish, social media, savvy and selfie-

lovers.

AN OVERVIEW

Future Lifestyle Fashions (FLF) brings together the four key components in the fashion

industry – a strong portfolio of owned and licensed brands, a well-established retail

presence, a pan-India reach for its brands through a strong distribution network and

investments in fast growing fashion brands – into a single entity. FLF is a unique player

in the fashion industry that is primed to gain leadership in building both fashion brands

and fashion retailing in India. As an integrated fashion company with presence across all

key segments within the fashion industry, FLF benefits from operating mature businesses

that have built its presence and strengths for well over a decade.

FLF APPROACH

Live, Breathe & Think Fashion – Fashion is ever-evolving and we will be

sensitive, agile and open to the rapidly evolving fashion market.

Consumers at our Core – We create exceptional brands and experiences that

reflect the various identities and aspirations of Indian consumers and their spoken and

unspoken needs, wants and desires.

Design is our Soul – The spirit of our design-thinking lies not only in the brands

and experiences we create but also in building relationships, leading innovation, setting

trends and providing utmost fulfilment to consumers.

Pursuit of Happiness – Above all, we will collaborate and strive to bring smiles

on the faces and happiness in the lives of our colleagues, customers, business partners and

communities we work in.



VISION AND MISSION

Vision

To be the leading lifestyle fashion company in India by creating exceptional brands and

shopping experiences that will bring alive the Indian idiom of fashion.

Mission

We at Future Lifestyle Fashions aim to create a globally recognized fashion organization

here in India by bringing alive the Indian idiom of fashion. We thus strive to:

Be the most preferred fashion destination of India

Create the most preferred portfolio of fashion brands

Be as the most innovative, efficient, and profitable retailer

Be the preferred employer in the fashion space

Be the trendsetter in Indian fashion through superior understanding of the culture, style code,

passion and aspirations of Indian consumers

Create happiness for customers, colleagues, business partners and every stakeholder

BUSINESS OVERVIEW

The Future Lifestyle Fashions is an integrated fashion company with presence across key

segments within the fashion industry i.e. design to distribution. Company’s business has

been designed to capture the trend of consumers getting more attuned to fashion and

brand preferences. We have a portfolio of fashion brands that cover the entire gamut of

fashion categories including formal menswear, casual wear, active or sportswear,

women’s ethnic wear, women’s denim wear, women’s casual wear, footwear and

accessories and are present across various price points.

COPRPORATE GOVERNANCE

Our reputation is earned by our conduct: what we say, what we do, the products we

provide, the services we offer and the way we act. FLF stands on the foundation of

integrity and stewardship.

We believe success requires the highest standards of corporate ethics towards everyone

we work with, the communities we serve, and the environment we impact. This is our



road to sustainable, profitable growth to create long-term value for our people, business

partners, customers and shareholders.

We have an active, capable and diligent management and leadership team that

understands its role in implementing rigorous financial discipline, risk metrics and gold

standard corporate governance. Our ongoing efforts encompass financial stewardship in

strategic and daily business decisions to ensure accurate financial reporting and effective

controls.

CORPORATE

Young. Vibrant. Classy. Graceful. Trend Spotters. We live, think and breathe fashion.

Part of Future Group, FLFL explores the area of fashion that creates and sets fashion

trends. With so many ways to create fashion trends, chances are you will fall in love with

the work environment here. With over two dozen brands catering to almost every segment

in men and women-wear, our brands are nurtured by dedicated teams based in multiple

locations across

BRANDS

The Company has 41 domestic and foreign brands that were developed independently of

the retail presence of the group. These brands are present in every segment within the

fashion space including, menswear, activewear, partywear, women’s ethnic and formal

wear, kidswear, footwear and accessories and are present across various price points.

While many of the brands have been developed by the Company over a decade, the

company also has exclusive licensees and joint ventures of global brands. While all the

Company’s brands are sold through the Company’s retail chains, these brands also

distributed through independent distribution channels, exclusive brand outlets and other

modern retail chains.

Launched in 2005, “aLL – A Little Larger” format has established itself in the niche plus

size clothing category. 'aLL' houses a wide range of ready to wear fashionable western



and ethnic wear and accessories that are otherwise not easily available for brand

conscious plus size customers. Currently this format is present as exclusive brand outlets

(EBOs), and also operates through store-in-stores (SIS), formats within Central and Brand

Factory

UMM is an Italian brand born out of a music label - Underground Music Movement - that

has over the years evolved into a fashion brand. We own the exclusive rights to the brand

in India and is among one of the most popular casual wear brands in the country

.

Lee Cooper is a global denim brand dedicated to style since 1908. In India, Future Group

owns the exclusive license to manufacture and market the brand in categories like denims,

trousers, jackets, shirts.

RIG is positioned as utility clothing and has products for men, women and kids. Rig's

clothing is unique in style and projects a different attitude from denims or formalwear.

The range includes cargos, 3/4ths, skirts, shorts, t-shirts and shirts for men, women and

kids. Comfortable in form and function, the ruggedness adds an element of activity. The

grainy and raw textures are inspired by elements of nature and their tactility is built for

open spaces. Though they portray outdoorsy functionality with lots of pockets, strong

fabrics and firm and rugged stitches, our clothes allow an individual to be at ease in all

environs.



Bare is our largest clothing brand with presence in casual wear, denim-wear and kids-

wear. Bare Denim range includes casual tops, t-shirts, denims and winter-wear for men

and women, Bare Casual range includes cotton and linen shirts, khakis, corduroys and

cotton trousers for men and Bare Kids offers a wide range of clothing options for kids. It

has a comprehensive offering of casual wear which has something for everyone. The

brand offers jeans, tees, tops, sweaters, pullovers, corduroys and zip-up jackets, for both

men and women under the Bare Denim label. Casual cotton shirts and trousers for men

are retailed as Bare Leisure and a wide range of clothing options for kids are offered

under the Bare Kids label.

Scullers is positioned as offering stylish sporty casual wear. The brand is known for its

chinos. The brand is distributed through EBOs as well as MBOs. The brand Scullers and

the crossed oars have over the years come to personify a lifestyle and the choice that

come with it. Sculler is timeless, embracing and the old as well as it does the new. It is

stylish without being flashy. Elegant without being somber. Sophisticated without being

upright. Scullers is a celebration of joy, optimism and new beginnings. Scullers is for

those who celebrate life.

Converse was established in 1908, the Converse brand has built a reputation as

"America's Original Sports Company". Converse offers an extensive range of its signature

footwear collection that are distributed through the group's network as well as Exclusive

Brand Outlets.



Spalding is an American sporting goods brand founded by Albert Spalding in Chicago,

Illinois, in 1876 and caters to the sporting goods category and also offering a wide range

of footwear options designed specifically for sportsmen.

Target at gen-next, Indigo Nation offers unparalleled range of fashionable office-wear,

club-wear and weekend-wear. It is designed exclusively for those who live life on the

edge, are live wires at work and are considered mavericks. With Indigo Nation offering

the latest fashion trends from across the globe, India's young, energetic and fashion-

conscious male needn't look any further. In fact, the brand has consistently pushed the

boundaries of stylish dressing and the baseline 'young like that' simply reinforces it.

Urban Yoga brand offers yoga apparel and accessories with a collection of casual wear

that compliments active lifestyle co-created with yoga practitioners. A brand that believes

in creating a balance between the busy outer world and the quiet inner world. Urban Yoga

is a brand of yoga apparel, accessories to reflect your love for rich Indian values, your

care for the environment and your desire to live as a

better person.



Holii was launched in 2009 as part of a joint venture partnership between Hide sign and

Future Group. Aimed at bringing in a distinct Indian design aesthetic to bags and

accessories along with the high production standards of Hide sign, the company shares the

vision to be an everyday affordable high end accessories brand. The Brand is sold across

India through 16 exclusive stores and over 50 multi brand outlets in Bangalore, Chennai,

Mumbai, New Delhi, Hyderabad, Pune, Ahmedabad, Lucknow, Bhubaneswar,

Chandigarh.

Daniel Hechter is a high-end French brand and is offered through an exclusive license in

India. The brand offers formal, semi-formal and casual wear for men. Launched in India

in 2009, Daniel Hechter is also available through EBOs and other departmental stores.

Fashion from Daniel Hechter combines European tradition with a sure sense of style and

elegance. It is synonymous with affordable luxury since it does not restrict fashion to a

small group of elite but captures the enthusiasm of a larger audience.

John Miller is our flagship brand in the men's clothing. It is a brand positioned for the

young professionals. John Miller is also available through Exclusive Brand Outlets and

Multiple Brand Outlets. John Miller offers a range of everyday corporate wear and

accessories for young male executives that unfailingly makes you look confident and

fluent. It includes shirts, trousers, business suits, blazers, accessories and deodorants.

Lombard is conceived as a men's formal wear brand, offering suits, shirts, trousers and

accessories like cufflinks, wallets and belts. The brand is positioned with the tagline,



'Where Real Power Rests'. Lombard is also being distributed through the general trade

and Multiple Brand Outlets

Jealous 21 is one of India's leading exclusive women's wear brand offering an elaborate

range of Hip-fit Jeans, range of tops and tee shirts designed for Indian body type. Fit is

the primary attribute that women look for when they buy jeans. Jealous 21 revolutionized

the women’s denim market by introducing unique concept of 3 hip sizes for every waist

size. 'Hottie' for the slim Hips, 'Hour Glass' for the regular hips & 'Bootillicious' for the

curvier hips. Matching an elaborate range of Hip-fit Jeans is an equally stunning range of

tops & tees. Oozing with oomph, this brand is designed to infatuate today's young

women.

Urbana is our premium formalwear brand that is designed on the premise of technology

meeting fashion. Urbana also offers a range of finishes like wrinkle free cotton and linens,

anti-spill shirts, odour-resistant shirts, sweat-free trousers. Urbana is a fine blend of

craftsmanship and innovation immaculately crafted for those seeking perfection. Every

Urbana product is benchmarked against the highest global craftsmanship and innovation

standards without any compromise. The brand offers a complete ensemble of suits, shirts,

trousers and accessories that's a true reflection of sartorial style and finesse.

Mohr, is a premium womenswear brand comprising of Indo-western clothing. The brand

embodies the many different faces of the modern Indian woman blending of Indian

traditional design with an indulgent touch of western fashion. The colours are bright with

peacock and lotus motifs, which are a symbol of cosmic harmony and essential



womanhood. The brand offers more than 200 styles available in selected Central stores.

The collections include dresses, tops, T-shirts, tunics and trousers.

Through the royal fortresses of the Mughal Empire, the quaint cafes of Paris, the bustle of

New York or the beaches of Goa – Desi Belle fuses old-world charm with contemporary

influences. It seamlessly combines cuts, colour, embellishments and contemporary

sensibilities. Created with care, the understated designs and the infinite eye to detail

symbolize the brand's ideology of creating premiere works of art for the discerning buyer.

Classic bandhani, ikat, Aztec and polka-dotted prints are brought to life with bright

colours, while the monochromatic aesthetic is played up with quirky illustrations.

Clarks was launched in 2011 as part of a joint venture between Future Group and C. & J.

Clark International Ltd. The brand offers range of branded boots, sandals and shoes for

men and women. The brand already has Exclusive Brand Outlets across the country.

Famozi redefines designing footwear to suit the fashion interests of the global style

conscious consumer. The footwear collection is largely targeted at the fashion conscious

men, across various age groups. The styling for our shoes is partially done in Italy,

indigenized for the Indian market, and the target audience. The product offering is found

in a whole range of vibrant yet stylish alternate colours and combinations, a change f rom

the traditional plain black and browns. The range imparts a complete casual yet

professional look to the wearer and is suitable for perfect that laid-back, casually-cool

look with the slip-on loafer, Soft, comfortable suede/leather upper and Contrast stitching.



Trèsmode, a brand synonymous with uber chic footwear, was launched into the Indian

market in 2007 with the first flagship store in Mumbai. Within eight years, Trèsmode has

not only created a presence across the country but also internationally and retails in cities

such as Mumbai, Delhi, Pune, Goa, Bangalore, Chennai and Kathmandu. With young,

cool and fashion forward designs, the brand is known for keeping up with the latest trends

as seen on the ramps in London, New York, Paris and Milan. Combining state-of-the art

quality with edgy design, sets Trèsmode above the rest. Trèsmode’s versatile collection

from party to work wear appeals to the urban clientele whose fashion tastes are constantly

evolving.

Giovani, a quintessential suits and jackets brand that refuses to be 'Jacketed'. The brand

eases the layer of formal-rituals around the suit and allows one's true self to manifest. It's

for the man who straddles many roles and celebrates each of them with ease. Giovani also

offers a niche and unique collection for the more discerning woman with an elegant sense

of style.

The brand focuses on design led fashion and home products including furnishings, linens,

furniture gifts and decor. Mother Earth sources traditionally hand crafted products from

artisans from all over India and provides them a market for their livelihood and crafting

skills. In 1994, the brand was founded to tap the market of home accessories produced by

artisans from rural India. Mother Earth is India's first 'green & sustainable' brand that

believes that nature provides for all, as long as we give back as much as we take. With a

wide range of carefully selected merchandise under fashion & home decor, every time



you shop at Mother Earth, you participate in preserving India's heritage of centuries old

art and craft.

INVESTORS OVERVIEW

The Company is an integrated fashion company with presence across key segments within

the fashion industry i.e. designs to distribution. Company’s business has been designed to

capture the trend of consumers getting more attuned to fashion and brand preferences. We

have a portfolio of fashion brands that cover the entire gamut of sub-categories including

formal menswear, casual wear, active or sportswear, women’s ethnic wear, women’s

denim wear, women’s casual wear, footwear and accessories and are present across

various price points.

FLF also focuses on investing in fast growing fashion companies and building the

portfolio of fashion brands. To further strengthen the fashion portfolio of the Company,

we have investments in companies, which owns/manages fashion brands like Turtle,

Clarks, Mother Earth, Tresmode, Mineral, etc.



2.2 INDUSTRY PROFILE

Retail is the process of selling consumer goods and/or services to customers through multiple

channels of distribution to earn a profit. Demand is created through diverse target markets and

promotional tactics, satisfying consumers' wants and needs through a lean supply chain. In the

2000s, an increasing amount of retailing is done online using electronic payment and delivery

via a couriered postal mail. Retailing includes subordinated services, such as delivery. The

term "retailer" is also applied where a service provider services the small orders of a large

number of individuals, rather than large orders of a small number of wholesale, corporate or

government clientele. Shops may be on residential streets, streets with few or no houses, or in

a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street

has a partial or full roof to create a more comfortable shopping environment protecting

customers from various types of weather conditions such as extreme temperatures, winds

or precipitation. Online retailing, a type of electronic commerce used for business-to-consumer

(B2C) transactions and mail order, are forms of non-shop retailing.

Shopping generally refers to the act of buying products. Sometimes this is done to obtain final

goods including necessities such as food and clothing; sometimes it is done as

a recreational activity. Recreational shopping often involves window shopping (just looking,

not buying) and browsing and does not always result in a purchase.

CHARACTERISTICS OF RETAIL INDUSTRY:

1. Small to huge store:

The spectrum of retails industry is quite wide in nature. Retail serves consumers through a

small grocery store to huge departmental store. Retail industry is heavily dependent on

consumer spending. In fact 2/3 of US GDP is coming from business. Retail is the second

largest industry in US. It has employed 23 Million people. During economics slow down

consumer spending decreases and it poses threat to the retail industry. Consumer’s confidence

is one of the key drivers of the industry.

2. Decline into small stores:

It is observed that small independently owned stores are gradually loosing their foothold in the

market place. These stores are generally “Mom and Pop” stores and they offer limited

https://en.wikipedia.org/wiki/E-tailer

https://en.wikipedia.org/wiki/Postal_mail

https://en.wikipedia.org/wiki/Wholesale

https://en.wikipedia.org/wiki/Corporate

https://en.wikipedia.org/wiki/Shopping_mall

https://en.wikipedia.org/wiki/Shopping_streets

https://en.wikipedia.org/wiki/Roof

https://en.wikipedia.org/wiki/Precipitation_(meteorology)

https://en.wikipedia.org/wiki/Electronic_commerce

https://en.wikipedia.org/wiki/Mail_order

https://en.wikipedia.org/wiki/Shopping

https://en.wikipedia.org/wiki/Trade

https://en.wikipedia.org/wiki/Final_goods



https://en.wikipedia.org/wiki/Recreation



merchandise to the consumer. These stores are facing stiff competition from the large

departmental stores of superstores and in this process they are closing down their shutters. In

many locations the arrival of a superstore has forced nearby independents out of business. In

the book selling &noble superstore out of business. This is a major characteristic prevailing

worldwide. But it is also true that many small independent outlets still knowing thrive byer

and knowing their customers better providing them with more personalised service.

3. Internet and E-Commerce:

Internet, the ubiquitous medium has opened a new avenue in front of the retailers. It has

offered an opportunity to the consumers to shop from the home. As it stands today overall.

Retail sales through internet may not be that significant but gradually it is gaining popularity

among consumers.Amazone.com is successful in this E-commerce domain

4. Repositioning of Departmental Stores:

The appeal of big departmental store is in the wane and they are trying to reposition

themselves. They are repositioning their product lines to survive in this highly competitive

market. For example, a departmental store which is supplying general merchandise to the

consumers is changing themselves into a giant apparel store.

5. Rise in Discount Stores:

Supremacy of discount store is also one of the distinct characteristics of retail industry today.

Discount stores offer money back guarantee, every day low price etc. to lure customers. They

also provide floor help and easy access to the merchandise to facilitate the consumer. Wal-

Mart the world’s largest retailer comes under this category of retail store.

6. Category Killers:

There are retailers who actually concentrate on a particular product category and grab a lion’s

share of that market and outperform their competitors. They are called category Killers. Toy R

Us (Toy market), home depot (Home Improvement) staples (office supplies) are the examples

of such retailers who have grabbed a major market share in that product category and they

have forced a reduction in the number of players in that product segment. This is also a

distinct trend observed in the currents retail market. Ten years back there were number of



players in the toy market and no one was controlling more than 5% of market share but now

the number of players has come down to six and toys R Us is enjoying 20% market share.

7. Direct Marketing:

With the advancement of technology, retailers have found another sales channel through

which they can reach the consumer and this is known as direct marketing. Direct marketing

has their root in direct mail and catalogue marketing (Land’s End and LL Bean). It includes

telemarketing television direct response marketing (Home shopping Network, QVC).

Although an overwhelming majority of goods and services is sold throughstores and non-store

which indicates retailing is growing at a faster rate. Direct selling worth about $9 Billion

industry with around 600 companies selling door to door. Avon, Electrolux, South western

company, Tupperware and Mary key cosmetics are the examples who have adapted this

strategy successfully.

8. Demographic Changes:

Retail industry is impacted by the demographic changes. As a result of this change taste of the

consumer is undergoing a change and it creates a demand on certain products. World- wide

retailers are keeping a close watch on this change and they are trying to realign themselves

with this change.

9. Mergers and Acquisitions:

Retailers who want to dominate the market place have adopted the strategy of mergers and

acquisitions. This is also one of the distinct trends in the global retail industry today. Instead of

achieving an organic growth retailers can grow significantly with the help of mergers and

acquisitions. This helps them to occupy more shelf space in the market place. As the volume

increases they are establishing better control over their suppliers and they are reducing the

procurement cost and in that way they are boosting their profitability. This is driven by the

economic growth factors, sixe, revenue pattern and customer demand. Sears and Land’s End

merger is one of the significant mergers which has happened in recent times. Another

important example would be Nikes acquisition of Hurley, a well-known surfing brand. This

has helped Nike to enter into a new market segment.



FLF RETAIL FORMATS

We offer brands, products and shopping destinations for all Indians, irrespective of their

age, styles, dreams, and expectations; they are a source of continuous inspiration. We

always strive to be attentive and to offer the best combination of fashion, quality and

price. FLFL’s retail network offers wide scope of exposure to its employees by bringing

them work space experience by offering multiple formats and online stores to work

around.

The Company’s flagship retail format, Central is a chain of department stores located in

central areas of large Indian metropolises and cities. Central stores located in large cities

like Mumbai, Bengaluru, Hyderabad, Pune, Ahmedabad and Gurgaon, as well as smaller

cities like Baroda, Indore, Vizag and Surat. These are large-format stores measuring

anywhere between 60,000 square feet to 230,000 square feet and offering over 500

Domestic & International brands across every category including men’s-wear, casual

wear, ethnic-wear, women’s-wear, kids wear, footwear, accessories, home products,

health and beauty. These stores, often located in standalone locations also have food-

courts, restaurants, supermarkets and electronics superstores built within. The Company

operates around 2.4 million square feet of retail space under this brand.

Built on the idea of 365 days of discounts, Brand Factory offers more than 200 Domestic

and International fashion brands at affordable prices for cost conscious aspirational youth.

It is also positioned as a stopover hub for graduating to lifestyle fashion. Brand Factory is

present in major cities, covering 0.9 million square feet of an area.



Planet Sports is India’s leading multi-brand sportswear and sports goods specialty chain.

Planet Sports is a one-stop destination for the latest global trends in the sports segment

offering apparel, footwear, sports-wear, equipment and accessories. This format is

majorly concentrated around Tier I and Tier II cities.

“I Am In” caters to enthusiastic Gen Next crowd who are in know-how of latest fashion

trends and happenings. A brand new concept by Future Lifestyle Fashion, “I Am In”

appeals to consumers who are fashionable, stylish, social media savvy and selfie -lovers.

With a hot pop of Fuschia & Tangy orange in one corner of store to classy basics of Black

& White in other, the collection of “I Am In” will rekindle the spunky and colourful side

of you. As the world of conversations has moved towards #Hashtags, the “I Am In” stores

across key metros feature funky one liners that will make you feel more connected to the

store! The vibrancy in “I Am In” designs will be the new epitome of novelty in fashion

space.

FUTURE GROUP SWOT ANALYSIS:

STRENGTH

Wide presence in India covering almost major cities and

towns

Efficient, cost conscious, committed quality services

High brand equity in evolving market

Variety of products under single window increasing the

chances of customer tie and choices

Has an employee base of over 35000

Everyday low prices, which attract customers and has a

huge investment capacity

It offers a family shopping experience were entire family

can visit together

Available facilities such as online booking and delivery of

goods.



WEAKNESS

Dependent heavily on India, and is susceptible to foreign

players

Stiff competition from global players means market share

growth is limited

Extreme popular means heavily crowded during festive/

discount season.

OPPORTUNITIES

Evolving customer touch points and achieve operational

excellence

Organisedretail is still in the growth stage and not entirely

utilized.

Global expansion and tie-ups with international brands.

THREATS

Global players trying to enter into Indian market

Low priced product could be perceived as low quality

product.

Government policies are not well defined in country like

India



3. RESEARCH DESIGN

A research design is the arrangement and conditions for collection and analysis of data in a

manner that aims to combine relevance to the research purpose with economy in procedure. In

fact the research design is the conceptual structure within with research is conducted; it

constitutes the blueprint for the collection measurement and analysis of data.

It must be able to define clearly what they want to measure and must find adequate methods

for measuring it along with a clear cut definition of population wants to study. Since the aim is

to obtain complete and accurate information in these studies, the procedure to be used must be

carefully planned. The research design must make enough provision for protection against bias

and must maximize reliability with due concern for the economical completion of the search

study.

Descriptive research is adopted for this study. It includes surveys and fact finding enquires of

different kinds. The major purpose of descriptive research is description of the state affairs as

it exists at present. The main characteristic of this method is that has no control over the

variables. He can only report what has happened or what is happened.

TITLE OF THE STUDY:

A study on the Performance Appraisal system followed by Future Lifestyle Fashions Limited.

STATEMENT OF THE STUDY:

The performance appraisal system plays an important role in increasing the efficiency of the

employees and it also gives the management a clear picture about the present job status,

understanding the potential of the employee to do higher jobs decide on the training and

development and also on the pay reward system. Therefore this study is completely based on

the performance appraisal system of Future Lifestyle Fashions Limited to find out its

efficiency.



OBJECTIVES OF THE STUDY:

To know whether employees are aware of the performance appraisal programme followed

by the organization.

To understand whether employees are satisfied with performance appraisal programme

To study the employees feedback on performance appraisal process.

To know the suggestions of the employees if any on the performance appraisal programme.

METHODOLOGY OF STUDY:

Every project work is based on certain methodology, which is a way to systematically solve

the problem or attain its objectives. It is a very important guideline and lead to completion of

any project work through observation, data collection and data analysis.

“Research Methodology comprises of defining and redefining problems, collecting, organizing

and evaluating data, making deductions and conclusions”.

-Clifford Woody

SCOPE OF THE STUDY:

The strength of any organization is its people if people are attended properly by recognising

their talents, developing their capabilities and utilising them appropriately organizing are

likely to be dynamic and grow fast. Ultimately the variety of tasks in any organization has to

be accomplished by the people. Some of them may have capabilities to do certain task better

than other task, and some of them may not have capability to do the task assigned to them. In

any case of the important process goals of dynamic organization is to assure that its people are

capable of doing the variety of tasks associated with their role or position.

The performance appraisal system, its implementation and effect on employees morale and

motivation.

The research was limited only to the Bellandur central mall, so the result couldn’t be

generalized to the whole market.

Employee performance evaluation system is linked to the customer relations and customer

satisfaction index collected through customer satisfaction service



The competency gap found is addressed through a trainingmechanism.

The trainings are delivered frequently on a one to one basis by the senior staff.

SOURCES OF DATA:

The task of data collection begins after a research problem has been defined and research

designed chalked out. While deciding about the method of data collection to be used for the

study the researcher should keep in mind two types of data.

The data collected for the project work are from two sources that is primary sources and

secondary sources.

PRIMARY SOURCES:

Direct conversations with the respective officers of the departments.

Face to face conversations with the employees.

Employee’s opinion collected through questionnaire.

Observation of HR activities.

SECONDARY SOURCES:

Various records of the employees.

Website of Future Lifestyle Fashions group.

Personal file of employees.

SAMPLING PLAN:

Sample size: 100 Employees

Sample Area: Future Lifestyle Fashions

Central Mall Bellandur



SIZE:

A sample of 100 employees has been selected. Although it looks to be a small sample keeping

in view the large number of employees it has to be limited because of time constraint. Even

the sample size is not considered to be small, it is enough to draw conclusions.

SAMPLING PROCEDURE:

It refers to the definite plan adopted by the research for obtaining the data from the

respondents. The technique adopted here is to gather data from sampling unit us questionnaire.

The type of the sampling adopted for employees here is convenience sampling.

DATA REPRESENTATION AND ANALYSIS:

Pie Diagrams

Tables

REVIEW OF LITERATURE:

Organizations exist to achieve goals. Goals are only met when individual employees efforts

match with the policy of the organization and thus bringing out success and effectiveness. The

assessment of how happy employees have been in achieving their personal goals, therefore,

becomes a critical part of HRM and here comes performance appraisal system.

•Have a basis for the evaluation. An effective employee evaluation needs to be based on

mutually agreed goals and objectives.

• Suggest that the employee reviews their performance before you share your review with them.

This provides an excellent opportunity to make sure you and the employee agree, where

possible on the appraisal.

• Be prepared before you sit down with the employee and perform the evaluation. Before the

meeting, you need to review the objectives previously set with the employee and need to

provide specifics about the employees work and how well the employee did or did not reach

the goal.

• Listen and interact. A successful appraisal is not a one-way conversation. You must

communicate with an employee during the appraisal and get their feedback on what you are

saying. Where there are areas for improvement, you need to get the employee to agree to these



fields and to agree to take action to improve performance. Ideally, you and the employee

should agree on what specific actions will be taken to improve performance.

• Discuss the balance between work life and personal life. An employee who only focuses on

work to the detriment of his life will eventually become burned out and will provide less value

to your practice.

•Don’t consider an employee performance appraisal a once a year process. You should be

providing your chiropractic staff members with ongoing feedback about their performance.

Your comments should be frequent enough so that at an annual performance review session,

nothing discussed will be a surprise to the employees.

• If one or more employees in your practice supervise others, make sure they perform regular,

productive employee appraisals.

LIMITATIONS OF THE STUDY:

1) Time factor was the main limitation for the study as the project was restricted to small period.

2) The research was limited only to the Bellandur central mall, so the result couldn’t be

generalized to the whole market.

3) The sample taken for research was concerned only for 100 employees rather than the

employees scattered in the company.

4) Since the project has to be completed within a short period of time the information collected

could be biased.

CHAPTER SCHEME

Chapter 1- Deals with the introduction which briefly explains about HRM and

performance appraisal. It deals with the objectives, importance, functions and all about

performance appraisal

Chapter 2 – Gives a brief idea about the company in which the survey was

conducted their vision, mission etc.

Chapter 3- Explain the research and design which explains the statement of the

problem need for the study, objectives etc.



Chapter 4- The data collected from the company has been analysed and interpreted

and have listed out the analysis which is been explained with the help of charts.

Chapter 5- Findings are given based upon the data collected by the employee.

Chapter 6- Suggestions and conclusion have been made based on the data

interpreted and the findings.



4. ANALYSIS AND INTERPRETATION

Table 4.1

Table representing the working experience of the

employees

Responses Number of

Respondents

% of Respondents

Less than 1 year 41 41

1 year to 2 years 22 22

2 years to 5 years 25 25

5 years and above 12 12

Total 100 100

ANALYSIS:

From the above table we can understand that the experience of 41% of employees is less than

one year.22 employees have the experience of one to two years.25 employees have the

experience of 2 to 5 years and 12 employees falls under the experience of 5 years and above.



Graph 4.1

Graph representing the work experience of the employees

INTERPRETATION:

From the above graph we can interpret that the employee turnover is high and a potential for

the growth and creation of a committed workforce exist in the organization.

41%

22%

25%

12%

Graph representing the work experience of the employees

Less than 1 year

1- 2 Years

2-5 Years

5 Years & more



Table 4.2

Table representing awareness of employees about

performance appraisal process

Responses No. of responses % of responses

Yes 86 86

No 14 14

Total 100 100

ANALYSIS:

From the above table we can understand that 86% employees of the organization are aware of

the performance appraisal system that is followed by the company.14%employees are not

aware or not known about the performance appraisal system.



Graph 4.2

Graph representing the awareness of employees about

performance appraisal system

INTERPRETATION:

From the above graph we can interpret that the awareness level about performance appraisal

system is high however there is a scope for improvement

86%

14%

Graph representing the awarness of employees about performance appraisal

system

Yes

No



Table 4.3

Table representing the awareness of employees about their

roles and responsibilities of their job


Yes 99 99

No 1 1

Total 100 100

ANALYSIS:

From the above table we can understand that 99% employees of the organization knows the

roles and responsibilities of their job, while one employee is not aware of it.



Graph 4.3

Graph representing the awareness of employees about

their roles and responsibilities of their job

INTERPRETATION:

From the above graph we can interpret that majority of the employees are aware of their roles

and responsibilities of their job. Only one percentage of the employee is not aware of the

responsibilities and role of the job.

99%

1%

Graph representing the awareness of employees about their roles and

responsibilities of their job

Yes

No



Table 4.4

Table representing the opinion of employees about


Responses No. of

responses

% of responses

Evaluation of employees 37 37

Promotion of employees 21 21

Job satisfaction of employees 20 20

Motivation 22 22

Total 100 100

ANALYSIS:

From the above table we can analyse that 37 employees believe that performance appraisal is

the evaluation of employees.

21 employees believe that performance appraisal is the promotion of employees.

20 employees opinion that performance appraisal is the job satisfaction of employees.

22 employees opinion is that performance appraisal is a kind of motivation to them.



Graph 4.4

Graph representing the opinion of employees about


INTERPRETATION:

From the above graph we can interpret that the awareness level of employees regarding the

opinion on what performance appraisal system are non- satisfactory.

37%

21%

20%

22%

Graph representing the opinion of employees about performance appraisal

Evaluation of Employees

Promotion of Employees

Job satisfaction of Employees

Motivation



Table 4.5

Table representing the time intervals of performance

appraisal of employees


Monthly 25 25

Half yearly 24 24

Quarterly 2 2

Yearly 49 49

Total 100 100

ANALYSIS:

From the table above we can analyse that 49 employees are in the opinion that the

performance appraisal time interval is yearly.

While 25 employees have the opinion that it is monthly and 24 employees are in the opinion

that it is conducted half yearly.2 employees think that it is quarterly.



Graph 4.5

Graph representing the time intervals of performance

appraisal of employees

INTERPRETATION:

From the above data we can interpret that there is no clear opinion about frequency of the

assessment however present system of annual appraisal to continue as it is a universal practise.

25%

24%2%

49%

Graph representing the time intervals of performance appraisal of employees

Monthly

Half-yearly

Quarterly

Yearly



Table 4.6

Table representing the opinion of employees regarding

the one to one session conducted every month


Yes 80 80

No 20 20

Total 100 100

ANALYSIS:

From the above table we can analyse that 80 employees agree that one to one session of every

month helps them for their development.

20 employees disagree to the statement that the one to one session is helpful.



Graph 4.6

Graph representing the opinion of employees regarding the

one to one session conducted every month

INTERPRETATION:

From the above graph we can interpret majority of the employee agree to this proposal that

one to one session carried out every month.

80%

20%

Graph representing the opinion of employees regarding the one to one

session conducted every month

Yes

No



Table 4.7

Table representing the method used by company to

appraise the employees

Responses No. of Responses % of responses

Open system 54 54

Confidential

system

46 46

Total 100 100

ANALYSIS:

From the above table we can analyse that 54 employees agree that the company follows an

open system to appraise the employees.

46 employees believe that the company follows a confidential system to appraise the

employees.



Graph 4.7

Graph representing the method used by company to

appraise the employees

INTERPRETATION:

From the above graph we can interpret that open system is the most preferred option by the

employees which will lead to a transparent appraisal system.

54%46%

Graph representing the method used by company to appraise the employees

Open System

Confidential System



Table 4.8

Table representing the opinion of employees in improving

their knowledge by the appraisal system


Yes 97 97

No 3 3

Total 100 100

ANALYSIS:

From the above table we can analyse that 97 employees agree that the performance appraisal

system helped them in improving their knowledge.

3 employees disagree to the statement that performance appraisal system help them in

improving their knowledge.



Graph 4.8

Graph representing the opinion of employees in improving

their knowledge by the appraisal system

INTERPRETATION:

From the above graph we can interpret that appraisal system is having a positive impact on

employees regarding the improvement in the knowledge gained by the employees.

97%

3%

Graph representing the opinion of employees in improving their knowledge by the

appraisal system

Yes

No



Table 4.9

Table representing the skills developed by the employees in

their performance area


Yes 90 90

No 10 10

Total 100 100

ANALYSIS:

From the above table we can analyse that 90 employees are sure that performance appraisal

system have polished some sort of skills or talent in their performance area.

10 employees disagree to this statement.



Graph 4.9

Graph representing the skills developed by the employees

in their performance area

INTERPRETATION:

From the above graph we can interpret that majority of the employees agree to the statement

that appraisal system helps them in developing the skills by the performance appraisal system

followed by the organization.

90%

10%

Graph representing the skills developed by the employees in their performance area

Yes

No



Table 4.10

Table illustrating the opinion of employees on the healthy

competition which the appraisal system generates


Yes 89 89

No 11 11

Total 100 100

ANALYSIS:

From the above table we can analyse that 89 employees agree with the statement that

performance appraisal system creates a healthy competition.

11 employees disagree to this statement with different opinions.



Graph 4.10

Graph illustrating the opinion of employees on the healthy

competition which the appraisal system generates

INTERPRETATION:

From the above graph we can interpret that majority of the employees admit to the view that

appraisal system creates a healthy competition. Rest of the employees differ their views from

this statement.

89%

11%

Graph illustrating the opinion of employees on the healthy competition which the

appraisal system generates

Yes

No



Table 4.11

Table illustrating the increment obtained by the employees

in their salary


Yes 68 68

No 32 32

Total 100 100

ANALYSIS:

From the above table we can analyse that 68 employees are given increment in their salary.

32 employees are not given any increment in their salary.



Graph 4.11

Graph illustrating the increment obtained by the

employees in their salary

INTERPRETATION:

The above illustration of employees shows that 32% of the employees are not receiving any

increment which is a negative impact to the organization.

68%

32%

Graph illustrating the increment obtained by the employees in their salary

Yes

No



Table 4.12

Table illustrating the employees opinion whether there is a

feedback after the appraisal system


Yes 75 75

No 25 25

Total 100 100

ANALYSIS:

From the above table the analysis is that 75 employees agree that there is a feedback give to

them after their appraisal system.

25 employees states that there is no such feedback that is being provided to them.



Graph 4.12

Graph illustrating the employees opinion whether there

is a feedback after the appraisal system

INTERPRETATION:

From the above graph we can interpret that majority of the employees agreed to the statement

that there is a feedback for the appraisal system. Still as per the negative response feedback

system needs to be improved.

75%

25%

Graph illustrating the employees opinion whether there is a feedback after the

appraisal system

Yes

No



Table 4.13

Table illustrating the details of how the feedback motivates

the employees


Incentive 24 24

Promotion 20 20

Recognition 31 31

None 25 25

Total 100 100

ANALYSIS:

From the above table we can analyse that 24 employees are in the opinion that the feedback is

helpful because they obtain incentives.

20 employees believe that this feedback can help them in their promotion

31 employees believe that they will get recognition if they get a proper feedback which they

will work on.

25 employees are of the opinion none that is it won’t help them in any of these ways.



Graph 4.13

Graph illustrating the details of how the feedback

motivates the employees

INTERPRETATION:

From the above graph we can interpret that majority of the employees receives the recognition,

incentives and promotion and this motivates the employees.

24%

20%31%

25%

Graph illustrating the details of how the feedback motivates the employees

Incentive

Promotion

Recognition

None



5. SUMMARY OF FINDINGS

Majority of the candidates participated were having about 1 year or less experience, which is

not a sufficient period for forming opinion for the factual feedback of the performance

appraisal system that is being followed by the organization.

The language barrier and the educational level were observed to be a factor contributing to

biased opinion on certain factors.

Employees are aware of their roles and responsibilities of their job except 1 employee who is

not aware of his job shows that there is a mistake in the perception of the employee in filling

the question as the employee won’t be allowed in the job without knowing the roles and

responsibilities of the job.

The employees have agreed with the point that they are aware of the performance appraisal

system that are being followed by the organization. Majority of the employees agreed that

performance appraisal is the evaluation of the employees workplace performance. Also

employees believe that performance appraisal is helpful tool which motivates employees.

The time interval of the performance appraisal that is being carried out by the organization is

yearly. However some employees have shown preference to a more frequent appraisal system

such as monthly or quarterly basis. The logic for such a suggestion may be due to the work

place parameters.

Most of the employees agree that the company follows an open system in appraising the

employees workplace performance However rest of the employees believe that the company

keeps a confidential system when appraising the employees.

Majority of the employees agree to the statement appraisal system brings out their talents and

skills once after they joined the company.

Most of the employees believe that the performance appraisal system creates a healthy

competition in between them.

From the table and graph it can be concluded that increments are not provided purely on

performance basis. The disparity if any need to be addressed immediately

Employees agree that they are given proper feedback after appraisals. They are also of the

opinion that the feedback helps them to improve their talent and career growth.

Employees are of the opinion that follow up actions such as on the job training etc. shall be

followed after performance appraisal.



Employees are of the opinion that systems such as goals and performances should be linked

with individual development programmes. This shall be driven by the line managers.



6. SUGGESTIONS AND CONCLUSIONS:

Following suggestions are from the employees side regarding the performance appraisal

system that is being followed by the organization:

On the job training at the shop floor level to be implemented and should be included in

performance indicators of senior managers.

Immediate corrective measures to be initiated to resolve the shortcoming that the employee is

not aware of the roles and responsibilities of the job.

Line managers need to proactively address this issue to head office of the organization.

A modified distribution system of increments to be started ensuring a minimum ratio of lowest

to highest increment.

The feedback system to be implemented to all the employees strictly which have to be

included to the roles and responsibilities of the managers.

Frequent performance evaluation can improve employee awareness of key performance

indicators (KPI).

Supervisors and line managers need to be trained with regard to factors affecting

performances.

Goals and performance appraisal (GPA) shall be introduced in organization to improve

awareness and performances of the organization.

Individual development program (IDP) to be developed and rolled out to employees so that

alignment of employee’s development goals and organizational are aligned.



Conclusions:

After analysing the data, it was observed that there is an appraisal in the organization. The

majority of the employees working here are comfortable with the appraisal system. Employee

working here are comfortable with the working environment. Employee knows the importance

of the appraisal system; and the response is that it is helpful in improving their organizational

and individual performance. The appraisal system should be more effective by improving

feedback which results in transparent performance assessment system. This also helps in

improving working relation within the organization. This may also result in a reduced turnover

of employees.



BIBLIOGRAPHY

BOOKS:

1. Rekha Priya M.N, JayalakshmiN A, Human Resource Management, Thakur Publishers,

Thakur publications Bangalore.

WEBSITES:

www.futurelifestyle.com

www.google.com

www.wikipedia.com

www.investopedia.com

http://www.futurelifestyle.com/

http://www.google.com/

http://www.wikipedia.com/

http://www.investopedia.com/



QUESTIONNAIRE

Dear Sir/Madam,

I am Lakshmi Suresh a student of 6th

Sem BBM from New Horizon College

Marathahalli, Bangalore is here as part of a project titled “A study on performance appraisal”.

Please fill up the below details as per your opinion. I assure you that your valuable feedback

will be confidential.

Thankyou.

Name (Optional): ………………………………………….

Gender: ………………….

1. How long have you been working here?

a) Less than a year

b) One year to Two years

c) Twoyears to Five years

d) Five years or more

2. Are you aware of the performance appraisal programme that is being followed in Future

lifestyle fashion limited?

a) Yes

b) No

3. Are you aware of the roles and responsibilities of your job?

a) Yes

b) No

4. In your opinion performance appraisal is?

a) Evaluation of employees.

b) Promotion of employees

c) Job satisfaction of employees.

d) Motivation



5. Time intervals at which performance appraisal is conducted in Future Lifestyle Fashions

Limited?

a) Monthly

b) Half yearly

c) Quarterly

d) Yearly

6. Do you think the one to one session in every month helps in the performance appraisal

process?

a) Yes

b) No

7. Which is the method used by the company to appraise the employees?

a) Open system

b) Confidential system

8. Has performance appraisal system helped in you improving your knowledge?

a) Yes

b) No

9. Does performance appraisal helps in polishing skills in performance area?

a) Yes

b) No

10. Do you think the performance appraisal system creates a healthy competition?

a) Yes

b) No

11. Do you receive any increment in your salary?

a) Yes

b) No



12. Is there a feedback after your appraisal?

a) Yes

b) No

13. If yes, how does it help you out?

a) Incentive

b) Promotion

c) Recognition

14. Suggestions if any?

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

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