Study On Effectiveness Of Performance Appraisal Of The ...

PROJECT REPORT

On

Study On Effectiveness Of Performance Appraisal Of

The Employees At Sakaria Hospital

By

Faraz Ahmed

1NH19MBA46

Submitted to

DEPARTMENT OF MANAGEMENT STUDIES

NEW HORIZON COLLEGE OF ENGINEERING,

OUTER RING ROAD, MARATHALLI,

BENGALURU

In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Ms. Saumi Roy

Asst. Professor

2019 - 2021

CERTIFICATE

This is to certify that Faraz Ahmed bearing USN 1NH19MBA46, is a bonafide student of

Master of Business Administration course of the Institute 2019-21, autonomous program,

affiliated to Visvesvaraya Technological University, Belgaum. The project report on “Study

On Effectiveness Of Performance Appraisal Of The Employees At Sakaria Hospital ” is

prepared by him under the guidance of Prof. Saumi Roy, in partial fulfilment of requirements

for the award of the degree of Master of Business Administration of Visvesvaraya

Technological University, Belgaum Karnataka.

Signature of Internal Guide Signature of HOD Signature of principal

Name of the Examiners with affiliation Signature with date

1. External Examiner

2. Internal Examiner

DECLARATION

I, Faraz Ahmed hereby declare that the project report on “Study On Effectiveness Of

Performance Appraisal Of The Employees At Sakaria Hospital ” with reference prepared by

me under the guidance of Prof. Saumi Roy, faculty of M.B.A Department, New Horizon College

of Engineering.

I also declare that this project report is towards the partial fulfilment of the university

regulations for the award of the degree of Master of Business Administration by Visvesvaraya

Technological University, Belgaum.

I have undergone an industry project for a period of Twelve weeks. I further declare that this

report is based on the original study undertaken by me and has not been submitted for the award

of a degree/diploma from any other University / Institution.

Signature of Student

Place:

Date:

ACKNOWLEDGEMENT

The successful completion of the project would not have been possible without

the guidance and support of many people. I express my sincere gratitude to all

for allowing to do my project.

I thank the staff of multiple companies for their support and guidance and

helping me in completion of the report.

I am thankful to my internal guide Prof. Saumi Roy, for her constant support

and inspiration throughout the project and invaluable suggestions, guidance and

also for providing valuable information.

Finally, I express my gratitude towards my parents and family for their

continuous support during the study.

Faraz Ahmed

1NH19MBA46

TABLE OF CONTENTS

CHAPTER

NUMBER

TITLE PAGE

NUMBER

Chapter-1 Introduction Page 1-

1.1 Introduction about the organization and industry 1

1.2 Industryprofile 2-6

1.3 Company profile, mission, vision, quality policy, and SWOT analysis

6-14

Chapter-2 Conceptual background and literature review 15-43

2.1 Conceptual background 15

2.2 Literature review 31-43

Chapter-3 Research Design 44-47

3.1 Statement of the problem 44

3.2 Need of the study 44

3.3 Objectives of the study 45

3.4 Scope of the study 45

3.5 Research methodology 45-46

3.6 Hypothesis 46

3.7 Limitations of the study 46

3.8 Chapter scheme 47

Chapter-4 Data analysis and interpretation 48-100

4.1 Demographic profile of the respondents 48-54

4.2 Likert five point scale 55-76

4.3 Factor Analysis 77-82

4.4 Hypothesis Testing 83-100

Chapter-5 Findings, suggestions and conclusion 101-104

5.1 Summary of findings 101-103

5.2 Suggestions 104

5.3 Conclusion 104

LIST OF TABLES

TABLE

NUMBER

TABLES PAGE

NUMBER

4.1 Table showing the Gender of Respondents 48

4.2 Table showing the Age Group of the Respondents 49

4.3 Table showing the Educational qualification of the Respondents 50

4.4 Table showing the Current Employment Status of the

Respondents

51

4.5 Table showing the working experience of the employees 52

4.6 Table showing how often is appraisal carried out in your organization

53

4.7 Table showing how would you rank the performance appraisal method in your organization

54

4.8 Attitude of the employees 55-59

4.8.1 Table showing you are satisfied with the performance appraisal

results of the organization

55-56

4.8.2 Table showing the criteria of performance appraisal is also considering the performance of the employees

56-57

4.8.3 Table showing are you satisfied with the outcomes of the appraisal

57-58

4.8.4 Table showing do you think there is still scope to improve performance appraisal system

58-59

4.9 Design of the appraisal form 59-63

4.9.1 Table showing all the goals and targets have been clearly

expressed and assigned to me by the management.

59-60

4.9.2 Table showing I feel the standards set for performance evaluation are pretty justifiable.

60-61

4.9.3 Table showing the reliability of the factors considered in appraisal system is satisfactory.

61-62

4.9.4 Table showing I feel the performance appraisal system set by the management is satisfactory.

62-63

4.10 Table showing Employee training and development 64-68

4.10.1 Table showing I feel training delivered after appraisal contributes in improving my performance.

64

4.10.2 Table showing all my appraisal skills are revived by the management on a daily basis.

65

4.10.3 Table showing the training provided by the organization 66-67

improves my motivation and knowledge.

4.10.4 Table showing the appraisal training helps me to overcome weak areas related to my job.

67-68

4.11 Feedback on performance by the management 68-72

4.11.1 Table showing the appraisal feedback provided by the

management is an important factor to improve my on-the-job

performance.

68-69

4.11.2 Table showing I feel appraisal outcome helps in diagnosing both organizational and individual problems.

69-70

4.11.3 Table showing the interaction with the management enhances appraisal effectiveness

70-71

4.11.4 Table showing the performance feedback motivates employees indirectly to perform better.

72

4.12 Linking rewards to performance appraisal system 73-76

4.12.1 Table showing I feel there exist a direct link between performance and pay in the organization.

73

4.12.2 Table showing performance based pay is given on a flat rate to every employee.

74

4.12.3 Table showing I’m satisfied the way my performance is appraised and rewarded.

75

4.12.4 Table showing the performance based pay I earn will have an impact on my future performance.

76

CHAPTER 1

INTRODUCTION ABOUT THE ORGANISATION AND

INDUSTRY

“The Health Care Industry refers to that segment of an economy which provides drugs,

medicines and all other related services for patients with preventive, healing, rehabilitative, and

soothing care. Therefore health care services mainly involves forming together tangible and

intangible factors where intangible factors dominates the tangible ones. Rooms, beds and other

decors are included in the tangible factors.”

“The various types of services related to health and welfare are provided by health care

industry. This health care sector is also referred to as social sector which is governed by the

central government at various state levels.”

“At present these health care industries is divided into many sub divisions and are taken

care by various interdisciplinary team which includes skilled and semi skilled professionals to

satisfy various needs of individuals related to their health.”

“The Health Care Industry is extremely of great significance to the people across the

globe. This type of industry includes all the other participants like doctors, hospitals, nursing

homes, diagnostic laboratories, pharmacies, medical device manufacturers, and all other various

elements of health caresystem.”

1.2 INDUSTRYPROFILE:

1.2.1 WHAT IS HEALTH CAREINDUSTRY?

“Health Care Industry refers to that type of industry which provides goods and services to

cure patients with curative, alleviate, preventive, or soothing care.”

“It includes setting up of this type of industry where which employsprofessionals varying from

confined (small town) private practices of doctors who hire only one medical assistant when

compared to busy inner-city hospitals that supply thousands of different jobs in this sector.

Health Care Industry is bestowed with numerous threats and challenges because it is the only

industry which requires timely innovation in its goods and services based on various regulations

and advancement of technology in this sector.”

1.2.2 IMPACT OF HEALTH CARE INDUSTRY ONECONOMY:

“As the Health Care Industry is extremely of a great significance to the people around the

world, it is also one of the flourishing and fastest growing industries across the globe. As it

consumes around 10 percent of Gross Domestic Product (GDP) of developed nations, there exist

an extremely strong correlation between these two factors which includes:”

Various income levels,and

Various expenditures of individuals on HealthCare.

“For an instance, few of the substantial developing countries like Brazil, India, China, Russia,

etc…. concentrate investing less on Health Care when compared to the industrialized or the

developed countries such as United States, France, Switzerland, Germany, etc”

“The Health Care Industry also plays a very significant role in providing employment

opportunities to the people across the globe, if we sum up the people working in different sectors

of Health Care Industry around the world. In most of the countries, the employment growth rate

of Health Care Industry is higher than that of other type of industries. Nevertheless, the Health

Care Industry which exists today is highly exploded and divided into many different firms and

competitors and there is no such firm or company that has enough number of shares or monopoly

of the market which has the ability to influence the industry’s direction or price levels in the

market.”

1.2.3 CLASSIFICATION OF HEALTH CAREINDUSTRY:

“For the purpose of Finance and Management, the Health Care Industry is particularly

divided into different areas. As a basic framework for defining the sector, the United Nations

Indian Standards Industrial Classification (ISIC) divides the Health Care Industry into three

types which consistof:”

HospitalActivities.

Medical and Dental practicesActivities.

Other Human HealthActivities.”

“”The third type of Human Heath Activity refers to all those type of activities which should

be carried on under the supervision and examination of nurses, midwives, physiotherapists,

diagnostic laboratories, residential health facilities of various other health professions e.g., in the

field of medical massage, yoga therapy, music therapy, occupational therapy, speech therapy,

homeopathy, optometry, etc….””

“”Further, the United Nations Indian Standards Industrial Classification (ISIC) has been

divided or classified the Health Care Industry into two different groups whichincludes:””

Health care equipments andservices

Pharmaceuticals, biotechnology and related lifesciences.

“”The companies dealing with health care equipments and services refers to those companies

which provide medical equipments, medical supplies, and health care services such as hospitals,

nursing homes, etc. the next group refers to those companies that produce biotech, pharmacy and

miscellaneous scientific services.””

1.2.4 HEALTH CARE PROVIDERS ANDPROFESSIONALS:

“”This type of industry also includes people who are not directly related to health care

itself, but are indirectly a part of management and support of health care system. The incomes

earned by various professionals and nonprofessionals related to Health Care Industry which

includes doctors, nurses, managers, administrators, underwriters, marketers, investors, share

holders of for-profit organizations are all credited to health carecosts.””

1.2.5 DELIVERY OF HEALTH CARESERVICES:

“”It comprises of three levels of delivery of health care services which includes

Primarylevel

Secondary level,and

Tertiary level of healthcare.”

“These levels form the most insight fragment of any health care services, both for end users and

general public. There are numerous ways of providing health care services in this technologically

advanced world, as the services can be rendered from anywhere across the world be it in the

home or at the work place, or in health facilities. But the most common and the best way of

rendering this type of services is through face to face delivery, where the patient and the doctor

will happen to see each other in front of their eyes and cure it in a better way. This is what

happens when a person has to consult a doctor for general medicine in most countries. However,

with the help of modern telecommunication technology, in absentia health care is becoming very

common. This happens when the practitioner or the doctor and patient communicate each other

via phone, video conferencing, the internet, e-mail, text messages, or any other form of non-face-

to-face communication””

1.2.6 MEDICALTOURISM:

“Medical tourism also termed as medical travel, health tourism, or global health care was

initially coined by travel agencies and the mass media which describes the increasingly number

of people travelling across the globe or international borders to gain health care. These type of

services generally include all he selective processes as well as complex specialized surgeries

such as joint replacement (knee or hip), cardiac surgery, dental surgery and cosmetic surgeries.

However, almost every type of health care including psychiatry, alternative treatments,

convalescent care and even burial services are available. Practically, the practitioners and

consumers generally follows informal channels of communication-connection-contract, and in

such cases this leads to inferior regulatory or legal oversight to assume quality and less formal

recourse to reimbursement, if needed.”

“Over 50 countries have identified Health Care Industry as national industry but however

accredition and quality differs from one industry to another across the globe and their exists high

risk and other ethical issues which makes this medical technology, a method of obtaining

medical care wrangling and also, some places across the globe may prove to be dangerous for

medical tourists to look at in this regard.”

1.2.7 HOME REMEDIES A TRADITIONAL HEALTHCARE:

“Home remedies have been one of the ancient methods which are still followed by the

people to cure all the minor and very general diseases. Home remedy is a treatment which was

provided to cure diseases that comprises the use of certain spices, vegetables or other common

items. Home remedies may or may not have medicinal properties that treat or cure disease but

can provide temporary cure to suchdiseases.”

“When we look back to the history of human civilization, everything from birth to curing

of disease was taken care by the practitioners or experts within one’s own house. Heath care

began as purely medicinal practices, in which the people the medicinal properties of plants

through trial and error, by trying it out and also passed the knowledge to others. Although there

is no record as to how the people got to know about the use of such plants but it is proved that it

provides instant relief for the disease for long. Later it also became a subject for purposeful study

by many countries including Persian, Egyptian, Greco-Roman, Indian and Chinesecultures.”

1.2.8 ANCIENT PHARMACOLOGY AND MEDICALPRACTITIONERS:

“Traditional practitioners or Health Care Industry were benefited with immense

knowledge of local flora and devised the principals and practices of ancient pharmacology. The

oldest and solely most extensive instance comes from Mesopotamia known as “Treatise of

Medical Diagnosis and Prognoses” were nearly 40 tablets were given which comprised of

prescriptions and treatises that outline treatments based on logical observation of the human

body.As the tribal culture involves specific castes, the people or practitioners who followed

Mesopotamia of 40 tablets were called as Shamans who performed the “Niche occupation” of

healing, and in the societies were exits the existed specialist in herbal remedies, referred as

physicians due to their immense knowledge in medical field.”

1.2.9 TECHNOLOGICAL, CHEMICAL AND BIOLOGICALADVANCES:

“In the early 19th century, there exist numerous technological, chemical, and biological

advances that paved a way for the practitioners to better understand and cure the diseases. These

discoveries included anesthetics, syringes, X-rays, antiseptics etc….but they were not used at a

wider range.”“During the beginning of 20th century, these modern health care services began to

evolve. The doctors started using these equipments as a part of their profession and providing

medical insurance to the people who are in need to meet their medical emergencies which are

carried out even today.”

1.2.10 GLOBALIZATION OF HEALTH CAREINDUSTRY:

“The concept of global Health Care Industry is a recent phenomenon and inspite of the

fact that the health Care Industry is becoming more global each day but health care has always

been considered as a local industry, particularly to individual countries, the practice and

development of Health Care Industry varies across the globe because in each country the Health

Care Industry has its own history and cycle of evolvement. Now, globalization of ancillary

Health Care Industry, new technological advancement and standardization of various aspects of

industry is driving the trend towards globalization of Health Care Industry in theworld.”

1.3 “COMPANY PROFILE OF SAKARIA HOSPITALPVT.LTD.”

1.3.1 BACKGROUND:

“To provide world-class healthcare services to the citizens of Bangalore North, Eleven

years back our SAKARIA HOSPITAL was established No.797, 10th main, 3rd block, HBR

Layout, Banglore-560043. It gives us immense pleasure to introduce you SAKARIA

HOSPITAL. The project was started in the Bangalore North to meet the needs of the patients and

community and provide quality care at an affordable cost. We are housed in a modern 12,000 sq.

ft. independentpremises”

“Most people tend to take good health for granted. But you may never even know when

your current lifestyle may adversely affect your health in the future. Constant stress, irregular

food habits and lack of exercise can be the main culprits.”“It is a fact that almost major ailment

first manifests itself as minor symptoms, which are often not noticed and hence, neglected. A

proper preventive health check-up helps in the assessment of your health conditions and may

provide the proverbial “stitch intime”.”

“At Sakaria, they continue to emphasize the age-old adage that “Prevention is better than

cure”. Sakaria Hospitals Group pioneered the Preventive Healthcare Packages in the country and

has so far to their credit more than 4 lakh health checks.”

“Sakaria Health Checks are a set of comprehensive and reliable Preventive Healthcare

Packages, designed keeping in mind the varied requirements of all the members of our family.

While undergoing the health checks our executives ensure that you are comfortable and well

taken care of.”“This coupled with our smooth, swift and systematic procedures will indeed make

our experience a pleasant one.”“Regular health checks are also done to ensure that we enjoy the

benefits of uninterrupted good health over a long period of time.”

“Sakaria Hospital is for diagnostic imaging and preventive health checkups in Bangalore,

India. Sakaria Hospital gives you a warm and friendly environment to make your time &

hospitality comfortable.”“Our medical and nursing staffs are committed to focus on the comfort

and safety of our patients. Sakaria Hospital is always best option in Bangalore, with a staff of

well-skilled and highly experienced doctors who take care of all the medical needs.”“Sakaria

Hospital has an exclusive division committed to the needs of international patients who visit

“The company acts as a facilitator between patients or visitors and various hospitals suggesting

various options available based on the required treatment of other services.”

In the facility, we have 35 bedded hospital with different categories of rooms- Deluxe

room, Private rooms, Twin/Sharing beds, and multi sharing beds. Two numbers of operation

theatres with all the sophisticated equipments and infrastructure to handle all kinds of cases and

emergencies. Labor room with life saving equipment for the newborns. ICU for all emergency

situations. Round the clock- medical emergency services, Casualty, Laboratory, OPD services,

Radiology services, Pharmacy.”

“Sakaria Hospital has a tie up with major insurance companies such as:”

“”Star HealthInsurance”

“United Healthcare Pvt. Ltd (ParekhTPA)”

“TTK Healthcare TPA Pvt. Ltd. (Vidal)”

“Medi Assist India TPA Pvt.Ltd.,

“E- Meditek TPA Pvt. Ltd.,”

“Vipul- Medicorp TPA Pvt.Ltd.,”

“Future Generali India Insurance Co.Ltd.,”

“Reliance Insurance”

“DHS”

“Paramount”

“GHPLTPA”

“Med saveTPA”

“Medicare”

“HDFC Ergo General Insurance- ApolloMunich”

“Aditya BirlaCapital”

“Safeway”

1.3.2 “COMPANY DETAILS:”

KPME NO. BLU01432AANH

Company Name Sakaria Hospital

Company Status Active

RoC RoC-Bangalore

Company Category Partnership Firm

Company Sub Category Non-govt company

Date of Incorporation 2009

Age of Company 11 years

Activity Health Care Services

1.3.3 WHY US?

Expert DoctorTeam

GoodInfrastructure

EasyAccessible

Skilled and dedicatedstaff

Cost-effective

Accurate DiagnosticResults.

1.3.4. VISION, MISSION, AND QUALITY POLICY OF SAKARIAHOSITAL

1.3.4.1 VISION:

“Sakaria Hospital gives you a warm and friendly environment to make your time & hospitality

comfortable. Our medical and nursing staff’s are committed to focus on the comfort and safety of

our patients.”

1.3.4.2 MISSION:

“Our mission is to blend state-of-the-art medical technology & research with a dedication to

patient welfare & healing to provide you with the best possible health care.”

1.3.4.3 QUALITY POLICY:

“Patient’s safety and well- being will always be our top priority. We will strive for continuous

quality improvement and also comply with the international standards to implement quality

systems and also to maintain the quality of ophthalmic services on par as per the international

standards.”

1.3.4. SERVICESOFFERED:

Health Check up:

“If you are having check up procedure done at Sakaria Hospital, you can rest easy

knowing that you are getting the best possible care. Our healthcare is equipped with the latest

technology and an excellent staff of medical professionals to ensure you have a great experience

during your day. We follow the following health plans too which includes primary, senior

citizens, gold, platinum, diamond, and deluxe whichever the customers want to opt according to

theirconvenience.”

Whole body MRI (Outsourcing):

“Whole body MRI evaluates all the organs in the body including the head, neck, chest,

abdomen, pelvis, musculoskeletal whole spine. Our healthcare is equipped with the latest

technology and an excellent staff of medical professionals to ensure you have a great experience

during your day. It includes:”

“Whole body MRI has no sideeffects”

Requires no priorpreparations

“It’s completely harmless with no exposure toradiation”

“Fully non- invasive with no injection ofcontrast.”

Diagnostic tests:

It includes the following types:

Stress Test(TMT)

Fully AutomatedPathology

Digital X –ray

2D Echo

ColourDoppler

Mammography

CT scans with Cardiac

Sonography

Pulmonary Function Test(PFT)

EEG

Sleepstudies

Allergytests

ARFI (Acoustic Radiation ForceImpulse)

DEXA BoneDensitometry

All types of LaboratoryTest.

Hair Transplant:

“Hair transplantation is a surgical technique that removes hair follicles from one part of

the body, called the 'donor site', to a bald or balding part of the body known as the 'recipient

site'.”“If you think up top or going bald really bothers you then this process can be one way to

feel more confident about your looks. You can always consult with the doctors in Sakaria

Hospital about what you can expect during and after thesurgery.””

Specialist consultations of all Specialities:

“A Consulting Specialist provides expertise services in a wide range of business and

service sectors, such as recruitment, finance, advertising, sales, human resources, and much

more. They work with clients or customers who need their advice orassistance.”

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

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

Health Checkups:

“It is a thorough physical examination; includes a variety of tests depending on the age

and sex and health of the person. Regular health checks can identify any early signs of health

issues. When you have a health check, your doctor will talk with you about your medical history,

your family's history of disease and your lifestyle, including your diet, weight, physical activity,

alcohol use and whether you smoke,etc…..”

Trauma Management:

“Traumatic injuries can range from minor isolated wounds to complex injuries involving

multiple organ systems. All trauma patients require a systematic approach to management to

maximize outcomes and reduce the risk of undiscovered injuries. Physical injuries are first

stabilized and then treated in a chain of medical actions that begin in the field with effective

emergency care and end with discharge to physical therapy.”

Pharmacy:

“It refers to a shop or hospital dispensary where medicinal drugs are prepared or sold.

Most pharmacists work in a community setting, such as a retail drugstore, or in a healthcare

facility, such as a hospital. Pharmacists in community pharmacies dispense medications, counsel

patients on the use of prescription and over-the-counter medications, and advise physicians about

medication therapy. The pharmacy is located just below the hospital which has all the medicines

available withthem.”

Eye hospital:

“Ophthalmology is a branch of medicine and surgery which deals with the diagnosis and

treatment of eye disorders. An ophthalmologist is a specialist in ophthalmology.

Ophthalmologists are allowed to use medications to treat eye diseases, implement laser therapy,

and perform surgery when needed. You can find the best of the best ophthalmologist at this

hospital.”

Dental services:

“Dental care is the maintenance of healthy teeth and may refer to: Oral hygiene, the

practice of keeping the mouth and teeth clean in order to prevent dental disorders. Dentistry is

the professional care of teeth, including professional oral hygiene and dental surgery. Sakaria

Hospital provides all the types of dental services with best doctor’steam.”

Physiotherapy:

“The treatment of disease, injury, or deformity by physical methods such as massage,

heat treatment, and exercise rather than by drugs or surgery is called as physiotherapy.

Physiotherapists help people affected by injury, illness or disability through movement and

exercise, manual therapy, education and advice. They maintain health for people of all ages,

helping patients to manage pain and prevent disease.”

1.3.5. INFRASTRUCTUREFACILITY:

“We are housed in a modern 12,000 sq. ft. independent premises. In the facility, we have 25

bedded hospital with different categories of rooms- Deluxe rooms, Twin/Sharing beds, and multi

sharing beds with ICU facility and also other facilities like:”

24*7 IP- Patient AdmissionFacility

MaternityFacilities

2 Nos. of O.T.Facilities

Emergency Room- MinorOT

24 hrs Ambulanceservice

2 Nos. of ConsultationRooms

24*7 Duty DoctorsFacility

24*7Pharmacy

24*7 In - HouseLaboratory

Physiotherapy

Dental

Eye – All types of CataractSurgery’s

Digital X - ray, C -Arm

Ultrasound

Waste DisposalSystem

Laundryservice

Ups andGenerator

1.3.6. COMPETITORS:

The major competitors of Sakaria Hospital are:

Chris Super SpecialityHospital

CDEC Hospital, HBRLayout

JMJHospital

Narayana Multi-specialityHospital

Fortis Hospital

Shifa multi-specialityHospital

SpecialistHospital

Good ShepherdHospital.

1.3.7. SWOTANALYSIS:

STRENGTHS:

Strong tie-up with various channelintermediaries.

Excellent customer service with friendlyambiance.

Easy availability of medicines at the pharmacy right below thehospital.

They offer service to the customers at affordablecost.

Great Geographiclocation.

WEAKNESS:

Absence of proper marketingplan.

Lack of proper infrastructural facilities.

Long waiting time forconsultation.

Shortage of staff at times in different departments due to variousshifts.

OPPORTUNITIES:

To increase the emergencyreferrals.

To adopt new technicalequipments.

Addition of doctors in thedepartments.

To collaborate with various insurance providing companies inIndia.

THREATS:

Establishment of new hospitals in and around SakariaHospital.

New tariff cost from insurance companies is the greatestthreat.

Changes in the regulations of World Health Organisation(WHO).

CHAPTER 2

2.1 MEANING:

CONCEPTUAL BACKGROUND

“Performance appraisal is a method of assessing the behaviour and performance of an employee

or group of employees at the workplace. The appraisal system includes both qualitative and

quantitative aspects of job performance. It is also referred as performance rating, performance

evaluation, employee assessment, performance review, merit rating, etc. In other words,

performance appraisal method is a systematic process that evaluates an individual

employee’sperformance in terms of his productivity with respect to the pre-determined goals and

objectives set by the organization. The appraisal system mostly happens annually, which gives an

opportunity to the employees working in that particular organization to reflect on the duties that

were dispatched by him. It not only involves receiving feedback regarding their performance but

also evaluates an individual’s attitude, personality, behavior, and stability in his jobprofile.”

“There are various applications of appraisals like compensation, performance

improvement, promotion, termination, test validation, etc. There are various methods of

performance appraisal which differ from one organisation to another. The frequency of

appraisals also varies in different organizations where most of the multinational companies

(MNC’s) offer them annually, some opt for shorter cycles like half yearly, quarterly, or even

monthly if the employees perform exceptionally at his/her job. In case of startups, it has been

observed that shorter cycles of performance appraisal are preferred so that they can motivate

their employees more frequently to perform better in theorganization.”

“The criteria for performance appraisal methods are based on various aspects like

productivity, quality of work, duration of service and training. Productivity in the manufacturing

concerns is measured mostly in the case of manufacturing i.e. the number of units manufactured

or delivered by the employee. Performance Appraisal is carried out to identify the various

abilities and competencies of an employee for future growth and development. It is aimed at

ascertaining the worth of the employee to the organization, in which he/she works.””

https://www.sumhr.com/performance-management-software/

https://www.sumhr.com/performance-management-software/

“Performance Appraisal is defined as a systematic process, in which the personality and

performance of an employee is assessed by the supervisor or manager, against predefined

standards, such as knowledge of the job, quality and quantity of output, leadership abilities,

attitude towards work, attendance, cooperation, judgment, versatility, health, initiative and so

forth. The objectives of performance appraisal system are as follows:”

“To help the employees, on the basis of their performance and competence in

the organization.”

“To identify the need for training and developmental programs ofemployees.”

“To provide confirmation/acceptance to those employees who are hired

asprobationary employees, upon completion of theterm.”

“To take decisions regarding the hike in employees pay, incentives, bonus,

recognition, etc.”

“To facilitate proper communication between superior and theirsubordinates.”

“To help employees in understanding where they stand in terms of one’s own

performance in the organization.”

“Data obtained from the appraisal of performance, are documented for future

referenceby the organization.”

2.1.2 PERFORMANCE APPRAISALPROCESS:

“””Performance appraisal process is planned, developed and implemented through a series of

steps. Each step in the process is crucial and is arranged logically. Many organizations make

every effort to approximate the ideal process, resulting in first-rate appraisal systems.

Unfortunately, many others fail to consider one or more of the steps and, therefore, have less-

Page 17

Measure Actual Performance

Communicate the Standards

Establish Performance Standards

effective appraisal system.”

2.1.2.1 Establish performancestandards:

“Appraisal systems require performance standards, which serves as benchmarks against

which performance is measured. To be useful, standards should relate to the desired results of

each job. The performance standards or goals must be developed after a thorough analysis of the

job. Goals must be written down. Just talking about them is not enough. They must be

measurable within certain time and costconsiderations.”

2.1.2.2 Communicate theStandards:

“Performance appraisal involves at least two parties; the appraiser and who does the appraisal

and the appraisel whose performance is being evaluated. Both are expected to do certain things.

The appraiser should prepare job description clearly’ help the appraisee set his goals and targets,

analyzes results objectively, offer coaching and guidance to the appraisee whenever required and

reward good results. The appraisee should be very clear about what he is doing it. For the

purpose performance standards must be communicated to appraisee and their reactions should be

noted right away. These standards must be revised ormodified.”

2.1.2.3 Measure ActualPerformance:

“After the performance standards are set and accepted, the next step is to measure actual

performance. This requires the use of dependable performance measures, the ratings used to

evaluate performance. Performance measures to be helpful must be easy to use, reliable, and

report on the critical behaviors that determine performance. Four common sources of

Taking Corrective Actions, if necessary

Communicate Actual Performance with Standards and Discuss

the Appraisal

information which are generally used by managers regarding how to measure actual performance

are personal observations, statistical reports, oral reports, and written reports.””

2.1.2.4 Compare actual performance with standards and discuss theappraisal:

“Actual performance may be better than expected and sometimes it may go off the track.

Whatever be the consequences, there is a way to communicate and discuss the final outcome.

Taking corrective actions, if necessary; Corrective actions are of two types: one puts the fires

immediately, while the other destroys the root of the problem permanently. Immediate action

sets things right and get things back on track whereas the basic corrective action gets to the

source of deviations and seeks to adjust the difference permanently. Basic corrective steps seek

to find out how and why performancedeviates.”

2.1.2.5 Taking Corrective Actions, ifnecessary:

“When a gap is found between the actual level and expected level of performance, corrective

actions should be undertaken. By analyzing the reason for a gap, proper action should be taken

so that the gap is bridged. When the actual and the standard performance match, there is no need

for any corrective action to be taken.”

2.1.3 METHODS OF PERFORMANCEAPPRAISAL:

“Each method of performance appraisal has its strengths and weaknesses may be suitable

for one organisation and non-suitable for another one. As such, there is no single appraisal

method accepted and used by all organizations to measure their employees’ performance. All the

methods of appraisal devised so far have been classified differently by different authors. While

DeCenzo and Robbins have classified appraisal methods into three categories: absolute methods,

relative methods and objective methods; Aswathappa has classified these into two categories

past-oriented and future-oriented. Michael R Carrel et. al. have classified all appraisal methods

into as many as six categories: rating scales, comparative methods, critical incidents, essay,

MBOandcombinationmethods.RockandLevis”haveclassifiedthemethodsintotwobroad

categories: narrow interpretation and broad interpretation. Beatty and Schneier have categorized

various methods of appraisal into four groups: comparative methods, absolute methods, goal

setting, and direct indices.”

“A more widely used classification of appraisal methods into two categories, viz.,

traditional methods and modern methods, is given by Strauss and Sayles”. While traditional

methods lay emphasis on the rating of the individual’s personality traits, such as initiative,

dependability, drive creativity, integrity, intelligence, leadership potential, etc.; the modem

methods, on the other hand, place more emphasis on the evaluation of work results, i.e., job

achievements than the personal traits! Modern methods tend to be more objective and

worthwhile.”

2.1.3.1 TRADITIONALMETHODS:

Ranking Method:

“It is the oldest and simplest formal systematic method of performance appraisal in which

employee is compared with all others for the purpose of placing order of worth. The employees are

ranked from the highest to the lowest or from the best to the worst.”

“”In doing this the employee who is the highest on the characteristic being measured and also the

one who is L lowest, are indicated. Then, the next highest and the next lowest between next highest

and lowest until all the employees to be rated have been ranked. Thus, if there are ten employees to

be appraised, there will be ten ranks from 1 to10.”

However, the greatest limitations of this appraisal method are:

“It does not tell that how much better or worse one is than another”

“The task of ranking individuals is difficult when a large number of employees are

related, and”

“It is very difficult to compare one individual with others having varying behavioral

traits. To remedy these defects, the paired comparison method of performance appraisal

has beenevolved.”

Paired comparison method:

“In this method, each employee is compared with other employee in the organization on

one-on-one basis, usually based on one trait only. The rater is provided with a bunch of slips

each coining pair of names, the rater puts a tick mark against the employee whom he thinks is the

best amongst the two. The number of times this employee is compared with others determines

his or her final ranking in theorganization.”

“The number of pairs for a given number of employees is ascertained by the

following“formula: N(N-1)/2”

“Where, n= total number of employees considered to be evaluated.”

“Thus, the pairs so ascertained give the maximum possible permutations and combinations. The

number of times a worker is considered better makes his/her score. Such scores are determined

for each worker and he/she is ranked according to his/her score. One obvious disadvantage of

this method is that the method can become unwieldy when large numbers of employees are being

compared.”

Grading Method:

“In this method, certain categories of grades are established in advance and carefully

defined. There can be three categories established for each employee: outstanding, satisfactory

and unsatisfactory. There can be more than three grades. Employee performance is compared

with grade definitions. The employee is, then, allotted with the grade that best describes his or

herperformance.”

“Such type of grading is done is semester pattern of examinations and in the selection of a

candidate in the public service sector. One of the major drawbacks of this method is that the rater

may rate most of the employees on the higher side of their performance.”

Forced Distribution Method:

“This method was evolved by Tiffen to eliminate the central tendency of rating most of

the employees at a higher end of the scale. The method assumes that employees’ performance

level confirms to a normal statistical distribution i.e., 10,20,40,20 and 10 per cent. This is useful

for rating a large number of employees’ job performance and promo ability. It tends to eliminate

or reduce bias.”

“It is also highly simple to understand and easy to apply in appraising the performance of

employees in the organizations. It suffer from the drawback that improve similarly, no single

grade would rise in a ratings.”

Forced-Choice Method:

“The forced-choice method is developed by J. P. Guilford. It contains a series of groups

of statements, and rater rates how effectively a statement describes each individual being

evaluated. Common method of forced-choice method contains two statements, both positive and

negative.”

Examples of positive statements are:

“Gives good and clear instructions to thesubordinates.”

“Can be depended upon to complete any job assigned.”

A pair of negative statements may be as follows:

“Makes promises beyond his limit to keepthese.”

“Inclines to favor someemployees.”

“Each statement carries a score or weight, which is not made known to the rater. The human

resource section does rating for all sets of statements— both positive and negative.”“The final

rating is done on the basis of all sets of statements. Thus, employee rating in this manner makes

the method more objective. The only problem associated with this method is that the actual

constructing of several evaluative statements also called ‘forced-choice scales’, takes a lot of

time andeffort.”

Check-List Method:

“The basic purpose of utilizing check-list method is to ease the evaluation burden upon

the rater. In this method, a series of statements, i.e., questions with their answers in ‘yes’ or ‘no’

are prepared by the HR department. The check-list is, then, presented to the rater to tick

appropriate answers relevant to the appraisee. Each question carries a weight-age in relationship

to their importance. When the check-list is completed, it is sent to the HR department to prepare

the final scores for all appraises based on all questions. While preparing questions an attempt is

made to determine the degree of consistency of the rater by asking the same question twice but in

a different manner.”

“However, one of the disadvantages of the check-list method is that it is difficult to

assemble, analyze and weigh a number of statements about employee characteristics and

contributions From a cost stand point also, this method may be inefficient particularly if there are

a number of job categories in the organisation, because a check-list of questions must be

prepared for each category of job. It will involve a lot of money, time andefforts.”

Critical Incidents Method:

“In this method, the rater focuses his or her attention on those key or critical behaviors

that make the difference between performing a job in a noteworthy manner (effectively or

ineffectively). There are three steps involved in appraising employees using this method.”

“First, a list of noteworthy (good or bad) on-the-job behaviour of specific incidents is

prepared. Second, a group of experts then assigns weightage or score to these incidents,

depending upon their degree of desirability to perform a job. Third, finally a check-list indicating

incidents that describe workers as “good” or “bad” is constructed. Then, the check-list is given to

the rater for evaluating the workers.”“The basic idea behind this rating is to apprise the workers

who can perform their jobs effectively in critical situations. This is so because most people work

alike in normal situation. The strength of critical incident method is that it focuses on behaviors

and, thus, judge’s performance rather than personalities”

“Its drawbacks are to regularly write down the critical incidents which become time-

consuming and burdensome for evaluators, i.e., managers. Generally, negative incidents are

positive ones. It is rater’s inference that determines which incidents are critical to job

performance. Hence, the method is subject to all the limitations relating to subjective

judgments.”

Graphic Rating Scale Method:

“The graphic rating scale is one of the most popular and simplest techniques for

appraising performance. It is also known as linear rating scale. In this method, the printed

appraisal form is used to appraise each employee.

The form lists traits (such as quality and reliability) and a range of job performance

characteristics (from unsatisfactory to outstanding) for each trait. The rating is done on the basis

of points on the continuum. The common practice is to follow five points scale. The rater rates

each appraisee by checking the score that best describes his or her performance for each trait all

assigned values for the traits are then totaled.”

“This method is good for measuring various job behaviors of an employee. However, it is

also subjected to rater’s bias while rating employee’s behaviour at job. Occurrence of ambiguity

in design- mg the graphic scale results in bias in appraising employee’s performance.”

Essay Method:

“Essay method is the simplest one among various appraisal methods available. In this

method, the rater writes a narrative description on an employee’s strengths, weaknesses, past

performance, potential and suggestions for improvement. Its positive point is that it is simple in

use. It does not require complex formats and extensive/specific training to complete it.”

“However, essay method, like other methods, is not free from drawbacks. In the absence of any

prescribed structure, the essays are likely to vary widely in terms of length andcontent.”

“And, of course, the quality of appraisal depends more upon rater’s writing skill than the

appraiser’s actual level of performance.”

“Moreover, because the essays are descriptive, the method provides only qualitative

information about the employee. In the absence of quantitative data, the evaluation suffers from

subjectivity problem. Nonetheless, the essay method is a good start and is beneficial also if used

in conjunction with other appraisal methods.”

Field Review Method:

“When there is a reason to suspect rater’s biasness or his or her rating appears to be quite

higher than others, these are neutralized with the help of a review process. The review process is

usually conducted by the personnel officer in the HR department.”

The review process involves the following activities:

“Identify areas of inter-raterdisagreement.”

“Help the group arrive at aconsensus.”

“Ensure that each rater conceives of the standardsimilarity.”

“However, the process is a time-consuming one. The supervisors generally resent what they

consider the staff interference. Hence, the method is not widely used.”

Confidential Report:

“It is the traditional way of appraising employees mainly in the Government

Departments. Evaluation is made by the immediate boss or supervisor for giving effect to

promotion and transfer. Usually a structured format is devised to collect information on

employee’s strength weakness, intelligence, attitude, character, attendance, discipline, etc.

report.”

2.1.3.2 ModernMethods:

“Management by Objectives (MBO):”

“Most of the traditional methods of performance appraisal are subject to the antagonistic

judgments of the raters. It was to overcome this problem; Peter F. Drucker propounded a new

concept, namely, management by objectives (MBO) way back in 1954 in his book “The Practice

of management”. The concept of MBO as was conceived by Drucker, can be described as a

“process whereby the superior and subordinate managers of an organization jointly identify its

common goals, define each individual’s major areas of responsibility in terms of results expected

of him and use these measures as guides for operating the unit and assessing the contribution of

each its members”.

“In other words, stripped to its essentials, MBO requires the manager to goals with each

employee and then periodically discuss his or her progress toward these goals. In fact, MBO is

not only a method of performance evaluation. It is viewed by the Practicing managers and

pedagogues as a philosophy of managerial practice because .t .s a method by wh.ch managers

and subordinates plan, organize, communicate, control anddebate.”

“An MBO programme consists of four main steps: goal setting, performance standard,

comparison, and periodic review. In goal-setting, goals are set which each individual, s to attain.

The superior and subordinate jointly establish these goals. The goals refer to the desired outcome

to be achieved by each individual employee. In performance standards, the standards are set for

the employees as per the previously arranged time period. When the employees start performing

their jobs, they come to know what is to be done, what has been done, and what remains to be

done”

“In the third step the actual level of goals attained are compared with the goals agreed upon. This

enables the evaluator to find out the reasons variation between the actual and standard

performance of the employees. Such a comparison helps devise training needs for increasing

employee’s performance it can also explore the conditions having their bearings on employee’s

performance but over which the employees have no control. Finally, in the periodic review step,

corrective measure is initiated when actual performance deviates from the slandered established

in the first step-goal-setting stage. Consistent with the MBO philosophy periodic progress

reviews are conducted in a constructive rather than punitive manner. The purpose of conducting

reviews is not to degrade the performer but to aid in his/her future performance. From a

motivational point of view, this would be representative of McGregor’stheories.”

Limitation of MBO:

“As with other methods, it also suffers from some limitations as mentioned below:”

“Setting Un-measurableObjectives:”

“One of the problems MBO suffers from is unclear and un-measurable objectives set for

attainment. An objective such as “will do a better job of training” is useless as it is un-

measurable. Instead, “well have four subordinates promoted during the year” is a clear and

measurable objective.”

Time-consuming:

“The activities involved in an MBO programme such as setting goals, measuring progress, and providing

feedback can take a great deal of time.”

Tug of War:

“Setting objectives with the subordinates sometimes turns into a tug of war in the sense that

the manager pushes for higher quotas and the subordinates push for lower ones. As such, goals

so set are likely to beunrealistic.”

Lack ofTrust:

“MBO is likely to be ineffective in an environment where management has little trust in its

employees. Or say, management makes decisions autocratically and relies heavily on external

controls.”

Behaviorally Anchored Rating Scales (BARS):

“The problem of judgmental performance evaluation inherent in the traditional methods

of performance evaluation led to some organizations to go for objective evaluation by

developing a technique known as “Behaviorally Anchored Rating Scales (BARS)” around 1960s.

BARS are descriptions of various degrees of behaviour with regard to a specific performance

dimension.”

“It combines the benefits of narratives, critical incidents, and quantified ratings by

anchoring a quantified scale with specific behavioral examples of good or poor performance. The

proponents of BARS claim that it offers better and more equitable appraisals than do the other

techniques of performance appraisal we discussed so far.”

Developing BARS typically involves five steps:

Generating CriticalIncidents:

“Critical incidents (or say, behaviors) are those which are essential for the performance of the

job effectively Persons who are knowledgeable of the job in question (jobholders and/or

supervisors) are asked to describe specific critical incidents of effective and ineffective

performance. These critical incidents may be described in a few short sentences or phrases using

the terminology.”

Developing PerformanceDimensions:

“The critical incidents are then clustered into a smaller set of performance dimensions,

usually five to ten. Each cluster, or say, dimension is then defined.”

ReallocatingIncidents:

“Various critical incidents are reallocated dimensions by another group of people who also

know the job in question. Various critical incidents so reallocated to original dimensions are

clustered into various categories, with each cluster showing similar critical incidents. Those

critical incidents are retained which meet 50 to 80% of agreement with the cluster as classified”

ScalingIncidents:

“The same second group as in step 3 rates the behaviour described in each incident in terms

of effectiveness or ineffectiveness on the appropriate dimension by using seven to nine points

scale. Then, average effectiveness ratings for each incident are determined to decide which

incidents will be included in the final anchored scales.”

Developing Final BARS Instrument:

“A subset of the incidents (usually six or seven per cluster) is used as a behavioral anchor for

the final performance dimensions. Finally, a BARS instrument with vertical scales is drawn to be

used for performance appraisal. BARS method of performance appraisal is considered better

than the traditional ones because it provides advantages like a more accurate gauge, clearer

standards, better feedback, and consistency in evaluation. However, BARS is not free from

limitations.”

“The research on BARS indicates that it too suffers from distortions inherent in most rating

scales. The research study concluded that “it is clear that research on BARS to date does not

support the high promise regarding scale independence In short, while BARS may outperform

conventional rating techniques, it is clear that they are not a panacea for obtaining high inter rater

reliability”

Assessment Centre’s:

“The introduction of the concept of assessment centre’s as a method of performance

method is traced back in 1930s in the Germany used to appraise its army officers. The concept

gradually spread to the US and the UK in 1940s and to the Britain in 1960s. The concept, then,

traversed from the army to business arena during 1960s. The concept of assessment centre is, of

course, of a recent origin in India. In India, Crompton Greaves, Eicher, Hindustan Lever and

Modi Xerox have adopted this technique of performance evaluation.”

360 – Degree Appraisal:

“Yet another method used to appraise the employee’s performance is 360 – degree

appraisal. This method was first developed and formally used by General Electric Company of

USA in 1992. Then, it travelled to other countries including India. In India, companies like

Reliance Industries, Wipro Corporation, Infosys Technologies, Thermax, Thomas Cook etc.,

have been using this method for appraising the performance of their employees. This feedback

based method is generally used for ascertaining training and development requirements, rather

than for pay increases. Under 360 – degree appraisal, performance information such as

employee’s skills, abilities and behaviors, is collected “all around” an employee, i.e., from

his/her supervisors, subordinates, peers and even customers andclients.”

“In other worlds, in 360-degree feedback appraisal system, an employee is appraised by

his supervisor, subordinates, peers, and customers with whom he interacts in the course of his job

performance. All these appraisers provide information or feedback on an employee by

completing survey questionnaires designed for this purpose. All information so gathered is then

compiled through the computerized system to prepare individualized reports.”

“In 360 – degree feedback, performance appraisal being based on feedback “all around”, an

employee is likely to be more correct and realistic. Nonetheless, like other traditional methods, this

method is also subject to suffer from the subjectivity on the part of the appraiser. For example,

while supervisor may penalize the employee by providing negative feedback, a peer, being

influenced by ‘give and take feeling’ may give a rave review on his/hercolleague.”

Cost Accounting Method:

“This method evaluates an employee’s performance from the monetary benefits the

employee yields to his/her organisation. This is ascertained by establishing a relationship

between the costs involved in retaining the employee, and the benefits an organisation derives

fromhim/her.”

“While evaluating an employee’s performance under this method, the following factors are

also taken into consideration:”

“Unit wise average value of production orservice.”

“Quality of product produced or servicerendered.”

“Overhead costincurred.”

“Accidents, damages, errors, spoilage, wastage caused through unusual wear andtear.”

“Human relationship withothers.”

“Cost of the time supervisor spent in appraising theemployee.”

2.2 LITERATUREREVIEW:

(Angelo S. DeNisi, 2017)

“Assessing the performance of the employees at work is an important task in any organization. It

refers to a formal process which happens once in a year or half yearly depending on the

organization, through which the employees of the organization are evaluated by the management

professionals who assess the employees performance based on the certain pre-determined

dimensions, assigns score to the assessment, and then usually informs the particular group of

employees about their formal rating. The author and researches or the study has reviewed around

hundred years of research on performance appraisal and performance management, mostly

focusing on the articles published in Journal of Applied Psychology. This study mainly focuses on

the latest trends on performance appraisal which includes scale formats, criteria for evaluating

ratings, training, reaction to appraisal, purpose of rating, rating sources, demographic differences in

ratings and cognitive process. the study has also focused on the trends during the heyday of the

performance appraisal research in Journal of Applied Psychology, which were more productive and

which enhanced the progress of the employees. This study resulted that Journal of Applied

Psychology’s role was not merely to propose models and ideas but also to test the ideas and models

proposed earlier. It has also made an important contribution in the field of performance

management by addressing the questions raised by various individuals and employees regarding

the critical incidents in performance appraisal.”

(Balasubramanian, 2016)

“Total Quality Management (TQM) has become one of the major issues in the Healthcare

Industry from the past few decades. This area was more focused due to various changes made in

government regulations, influence of customers, and hospital management initiatives. Moreover,

there are many more hurdles in managing the healthcare organizations in such a competitive

marketplace where there is no support given from the local bodies especially in the developing

countries. The main objective of the study was to provide a framework for implementation of

total quality management concept which is made compatible even with the local culture of India.

The test used SERQUAL model which served the healthcare facility by not onlyachieving”

“employee’s satisfaction but also the satisfaction of its customers. There are also certain

limitations to healthcare industries when it has to gel with total quality management which

includes the traditional culture in various countries, leadership style, and the mentality of the

medical professionals. The study also resulted in providing the suggestion that this Total Quality

Management can be of a great support to the healthcare sector in the world which will help the

organization to overcome its barriers and improve its performance.”

(Pushpalatha K, 2016)

“It is necessary to understand and evaluate the socio-economic and personal elements which

influence the individual behaviour and opinions in the organization. This study focuses on the

professionals and semi-professionals and follows interviewed questionnaire method to collect the

data and to analyze the attitude, perception, opinions and information of the library professionals.

These data professionals were mainly the librarians where the librarians need to plan, direct and

supervise various library operations for which professional knowledge is utmost important. This

paper reports on the views of the respondents and their perceptions on common pitfalls of

performance appraisal system. The objectives of the study were firstly, to examine and evaluate

the key features of performance appraisal, secondly, to highlight the strengths and weaknesses of

the appraisal system and thirdly, to raise major implications to strengthen the performance

management system. The study used multiple regression and correlation techniques for data

analysis. The study resulted that the appraisal establishes link between organizational as well as

individual performance. In many colleges there is lack of seriousness about appraisal interviews.

Therefore, the findings recommend that the librarian should adopt strategic planning and pay

attention to human resources. The salary and compensation should be in the direction rather than

being flat. The study also recommends that the performance appraisal technique need thorough

training of both the appraisers and the appraises by the human resource department so that they

provide relaxed and motivated encouragement to the employees of the particular organization.”

(Leece, 2016)

“This article aims at determining whether performance appraisal in the Australian industry has to

be updated or not. The paper mainly focuses on the findings of a recent study of performance

appraisal system in Australian industry, updating the research conducted earlier with the view of

contemporary organisation changes and industry relation changes. As we are aware that

performance appraisal is still a Human Resource Management tool, with an increase in employee

coverage and an emphasis on management by objectives. This survey of performance appraisal

practice in Australian industry was conducted in the year 1995 to do the necessary changes based

on the existing result of the survey. The survey was conducted using standard questionnaire and

covered around eighteen questions which were sub divided into four sections i.e., organization type

performance appraisal programmes, purpose and uses of performance e appraisal, and methods and

features of performance appraisal. This survey was distributed to 1500HRMspecialist who were

randomly selected from the 1995 Australian human resource management directory. The survey

found that performance appraisal schemes are usually designed by the HR specialist themselves

around 44%, consultation with other group of individuals 13% the result from the study shows the

traditional view of performance appraisal with some areas needed changes. Some authors consider

to distinct performance appraisal purposes-performance evaluation and training and development

this study clearly indicates that the current focus of many organisation is on the former, possibly at

the expense of latter.”

(Dr. Muhammad Zahid Iqbal, 2015)

“Based on the robust analysis of the existing literature on performance appraisal, this paper aims at

making a case for an integrated framework of effectiveness of performance appraisal (EPA). To

achieve this, it draws on the expanded view of measurement criteria of effectiveness of

performance appraisal i.e., purposefulness, fairness, and accuracy, and identifies their relationships

with rate reactions. These were discussed in two parts ‘general’(dealing with research trends in the

sub-field of EPA), and ‘specific’(focusing on the rate reactions-based integrated framework of

EPA). This paper used variety of research designs such as cross- sectional and longitudinal, surveys

and experiments or quasi-experiments. With regard to the 104 empirical studies, 64% were carried

out with real actors (e.g., employees) and 27% werein

artificial settings (e.g., with students). The first objective of this paper was to identify the

relationship between measurement criteria and their respective outcomes and the final objective

was to seek an integrated framework of EPA. This paper has also provided with empirical

confirmations based on a priori theory which suggested nomological networks for the above-

mentioned relationships, which are all set for empirical testing. This expansion on performance

appraisal fairness suggests newly established nomological networks, which were ignored in the

past, e.g., the relationship between distributive fairness and organization-referenced outcomes.

Further, refinements in performance appraisal accuracy reveal a more comprehensive

categorization of rating biases. Coherence amongst measurement criteria has resulted in a rate

reactions-based integrated framework, which will be useful for both researchers as well as

practitioners.”

(Ushus Mathew, 2015)

“The main aim of the study was to determine the relationship between the work performance

with the performance appraisal and motivation among the nurses of a multi-speciality hospital in

Kerala. The basic purpose of any appraisal system should be towards improving the performance

of the employees that caters towards organization success. In order to examine the relationship

data was collected through pre tested structured questionnaire from the sample size of 100 nurses

of that particular hospital. Convenience sampling method was used to collect the data due to time

and resource constraints. Regression and correlation techniques were used for data analysis and

interpretation. Reliability analysis was another technique used to check the reliability of the

questionnaire. It was concluded from the study that there is an insignificant relationship between

work performance and motivation. Thus, the appraisal system should first contribute towards

motivation of the employees. Health care sectors should seek to enhance the employee’s

motivation so that they improve their performance. It was also concluded from the study that the

nursing staff of multi-speciality hospital have high work performance due to satisfaction towards

the current performance appraisal system of the organization.”

(Y,2014)

“In every hospital industry which is also referred as service sector where the patients also called

as customers are the most important persons. It is a duty of every employees of the hospital to

perform their duties in an outstanding way so that they satisfy their customers. Therefore, this

study aims at determining how performance appraisal will motivate the employees to perform

better and also it helps to determine the training needs of the employees which will in turn help

them to enhance their skills and make them more competent to perform their task. The study

included around 400 employees across 5 hospitals in Kerala. The data was collected from the

respondents in the form of questionnaires. Discussions and informal interviews were also taken

in order to collect the first hand information. The study used convenience and judgmental

sampling techniques for data collection. The study resulted that performance appraisal should not

be adopted just as a routine activity but its importance should be communicated to each and

every employee in the organization. New methods of appraisal should also be adopted so that

both the appraiser and the appraisee interestingly take part in the performance appraisal

process.teh study also reveals that the employees who are performing better each time should be

rewarded and made the mentors so that they can motivate other employees to perform better in

theirjobs.”

(Krishnendu Hazra, 2014)

“This study aims at finding out the role of motivation on employee’s performance in different

segments of catering sectors under hospitality industry in Kolkata. As we are aware that

employees are the most vital factor in the success and failure of any organization therefore

motivating them is also important as it is the most crucial part to motivate the employees to

improve their performance. The catering industry is a type of service based industry that sells

foods and other things to its guests therefore performance of the employees is very important.

The hospitality industry in India is running short of good employees and also facing a cut-throat

competition from other sectors also. This reason behind this could be due to some motivational

factors like good remuneration, a proper work life balance, better working conditions and faster

professional growth provided by the other service sectors. The total numbers of observations

consideredwere304andquestionnairewasusedtocollectthedata.Correlationandregression

analysis were used for data analysis. As motivation is truly a multi-dimensional factor and it also

defers from one person to another based on their likes, dislikes, passion, interest, desires, etc.

The employees working in hospitality industry will have a unique character as they do not have

any stipulated time frame for any assigned job. It is the sector which keeps on operating 24/7 of

365 days. The outcome of the study has provided an organization with a wider and better picture

to evaluate the employee’s motivation level based on their performance. Out of the 23 variables,

only 8 variables act more prominent to enhance the motivational level of the employee’s

performance than the other variables. Hence in order to retain the employees at the right time on

the right job the organizations has to redesign their performance appraisal and reward system

according to the local culture keeping in mind the motivational factors. Each and every

organization has to build its own motivational system based on compatibility between the

organizational and individualgoals.”

(Verma, 2014)

“Business perceptions of the construction industry have changed drastically during the last few

decades. Due to the immense competition and globalization issues, the performance assessment

which was done using objective measures. Both internal and external factors have a significant

influence on the performance appraisal system. Therefore, in order to analyze how the organization

improves their performance appraisal tool for better management of human resource at the

organization, this study aims at finding out whether the workers and managers knows that

improved technologies have been used under performance appraisal system and if these techniques

influence the performance appraisal system and if yes, then which worker has the more clear

picture of the improved techniques of performance appraisal system in the organization. The

objectives of the study are classified into two-fold, firstly to identify the variables of the

performance appraisal system and secondly to measure the perception gap between various

categories of managers on selected variables with effect of current performance appraisal system at

the organization. The primary data was collected through questionnaires filled by the workers and

managers of Rajasthan State Miles and Minerals ltd (RSMML), while the secondary data was

collected from the company’s official website. Hypothesis testing,

regressionanalysis,ANOVAandPostHoctestwereusedfordataanalysis.”

(Satoris S. Culberstone, 2013)

“Employee satisfaction with performance appraisal plays a wide role to find out the effectiveness

of performance appraisal. This study focuses to find out reactions to a real performance appraisal

that had meaningful consequence for employees. This study, however, is limited by the cross-

sectional design, which does not permit casual inferences. A total of 234 staff employees were

included in the survey in which 68% were female at a large south western US university. This

survey was completed approximately three months right after the annual merit-based

performance appraisal were completed. The sample size of the study included approximately

around 167 to169 employees. The study examined the joint effects of feedback sign whether

positive or negative and three goal orientations dimensions i.e., learning, performance-prove,

performance-avoid on performance appraisal satisfaction. The study used Vande Walle’s goal

orientation inventory to measure the goal oriented results. Another potential limitation is the

single-source nature of our data. However ,because our primary focus was mainly focused with

interaction effects, common method variance is less concerning this study relied upon self-

reports of overall ratings on performance for data collection rather than actual employment

records. Therefore the results of the study revealed the negative relationship between negative

feedback and performance appraisal satisfaction. Additionally, the relationship between positive

feedback and performance appraisal was stronger for individuals low on PPGO and weaker for

individuals high onPPGO.”

(Rabia Karimi, 2011)

“This study aims at to examine the relationship between employee performance appraisal system

and employee satisfaction. This study was conducted to the employees working at one of the

International non-profit organization. It considered 101 employees for the sample collection. The

data was collected with the help of adopted questionnaires. Convenient sampling and snow-ball

sampling techniques were used for data analysis. The outcome of the study shows that there is a

positive relationship between the Independent and Dependent variables and this is due to the

reason that the organization which was selected for data collection was an International

organization which believes in enjoying the policies and procedures in a fair manner. The study

also resulted that there is no significant difference between the male and female employees with

respect to their performance appraisal system and employee satisfaction. It also confirms that the

performance appraisal system in practice is fair enough to keep all the employees in the

organization satisfied.”

(Soni, 2011)

“To know whether an employee has shown his or her best performance on a given job, performance

appraisal and employee assessment can be used. Organizations goals can be achieved only when

the people put in their best efforts. This paper examines the nature and limitations of performance

appraisal for host country managers in a sector of health care industry in Australia. The main

objectives used in the study are firstly, to study about the recent trends in performance appraisal,

secondly, to study about the global trends of performance appraisal in multi-national organizations

with supporting data and thirdly, to know about the pre-requisites for effective and successful

performance appraisal like documentation, standards/goals, practical and simple format, evaluation

techniques, communication, feedback, personal bias. The study found that performance appraisals

are widely used in the organizations, but in most of the cases around 80% were perceived as

ineffective. The findings suggest that the host country manager’s experience of the appraisal

system often result in the manager perceiving limited opportunities for the career development and

advancement in the organization. This may also impact on the overall long term performance of the

subsidiary company. The study recommends that some straight-forward modifications to the

appraisal could make a significant contribution to both retention as well as the development of

these managers, and, also towards their performance in the organization.”

(Kamencu, 2011) (Ushus Mathew, 2015)

“The purpose of this study was to find out the effectiveness of performance appraisal system in

Kenya Tea Development Agency. The objectives of the study were classified into general and

specific category. This research adopted a descriptive research design where the population of

interest in the selected tea estate were visited where only 70 respondents were selected out of 348

possible respondents using stratifies random sampling by taking 20% of the targeted population

from each stratum or group. Thus, the study revealed that the factors like competence, assessment

and development, employee training, performance based pay and management by objectives were

the key factors that influenced the employee performance as indicated by the respondents and these

factors cannot be ignored. From correlation and regression analysis we found that performance

appraisal systems namely; management by objectives, performance based pay and employee

training has the largest effect on employee performance. Competence, assessment and development

also had a positive effect on employee performance by the positive correlation of 0.389. This was

an indication that all the independent factors (competence, assessment and development,

management by objectives, performance based pay and employee training) with coefficient

determination of 67.2% had a large effect on the dependent variables, which was the

employeeperformance.”

(Al-Sabri, 2009)

“This study aims at bridging the gap that exist between understanding of demographic factors,

work motivation, job satisfaction, and work performance in a government health care sector in the

Middle East, especially in the UAE. It analyses the nature and significance and also how the

demographic variables remained unexplored in the public sector heath care in the UAE. It also

investigates the role of these demographic factors like marital status, age, and education and how

these factors affect the level of employees work motivation and job satisfaction. It also aims at

identifying if there exist some relationship between work motivation, job satisfaction and work

performance of the employees with performance appraisal system. The sample size used was 450

employees and questionnaire method was used to collect the data. Regression and correlation

analysis,likertfivepointscale,anddescriptiveanalysiswerethetoolsusedforthisreview.”

(Steven E. Abraham, 2001)

“Expanding on the work of a pilot study done in the year 1998, this study used survey research

questions to investigate two general issues focusing on the managerial competencies and

performance appraisal i.e., whether a set of managerial competencies currently being used by the

organizations to describe successful managers and whether organizations are using these same

competencies in appraising the managerial employees as a part of their performance appraisal

process. A sample of 2,500 firms were surveyed for data collection and asked which competencies

they consider descriptive of successful managerial employees, whether they use the competencies

to appraise their managerial employees and which are the six major competencies constituting to be

more vital than others. According to 277 survey respondents the similar six competencies said by

them are leadership skills, customer focus, result oriented, problem solver, communication skills

and team worker. The results also show that many firms are not appraising these competencies in

their managerial performance appraisal process. the result of the study also suggest that

organizations are willing to identify a set of managerial competencies that describes the successful

manager, organizations which are successful running in the market should be encouraged not only

to identify the managerial competencies that are most critical to successful performance but also to

ensure that same are incorporated in the performance appraisalprocess.”

(Kluger, Feedback effectiveness: Can 360-degree appraisals be improved?, 2000)

“Performance feedback is an important part of many organizational interventions. Managers

typically assume that providing employees with feedback about their performance makes it more

likely that the on the job performance of the employees will be improved. Despite the prevalence of

feedback mechanisms in management interventions, feedback is not always as effective as it is

typically assumed. In this study the author present specific conditions in which feedback might be

less effective, or even harmful. The author has also discussed with the implications of our results

and model for designing of interventions which aimed at improving performance, and focused

more narrowly on 360-degree appraisal systems. After arguing that these systems typically have

designed the characteristics that reduce effectiveness, the author concludes with the

recommendations for improving their effectiveness. The author has alsoemphasized on the

need for systematic evaluations of feedback interventions about the performance appraisal

system at theorganization.”

(Blau, 1999)

“Job satisfaction has probably been the most often researched work attitude in the organizational

behavior literature. By using a longitudinal sample of medical technologies (MT’s), this study

found after controlling for prior overall job satisfaction, individual differences, and organization-

level variables, that task responsibilities and employee performance appraisal satisfaction

significantly affected subsequent overall MT job satisfaction. Data also suggested that the impact of

task responsibilities on overall job satisfaction can dissipate overtime, and that the supervisor’s role

in affecting employee job satisfaction is important. Mean, standard deviations, reliabilities and

correlations of continuous variables were used for data analysis. The correlation results included

stronger positive relationships between the job satisfaction and performance appraisal system of

theorganization.”

CHAPTER 3

RESEARCH DESIGN

3.1 STATEMENT OF THEPROBLEM:

“Performance appraisal is one of the most important and unavoidable part of any

organization whether it is for – profit or non – profitable purpose, as this process helps the

organization to evaluate the performance of the employees and to formally recognize their

achievements and contribution towards the organization. The main aim of performance appraisal

is to reward the great performance and to address the weaknesses.”

“This study mainly focuses on finding out the effectiveness of performance appraisal on

the employees working at Sakaria Hospital, Bangalore and to evaluate the current status of the

satisfaction of employees with the present performance appraisal system at Sakaria Hospital,

Bangalore. If there is found some dissatisfactory factors, the study will try to provide some

suggestions to improve the situation.”

3.2 NEED OF THESTUDY:

“There are numerous needs to study the effectiveness of performance appraisal, some of

them are listed below:”

“The ultimate need of performance appraisal system is towards achieving organizational

goals.”

“Performance appraisal helps the superior to know the level of competency and have a

proper understanding about theirsubordinates.”

“Performance appraisal is also significant in providing ranking based on performance of

the employees.”

“To provide fair and equitable compensation based on performance of theemployees.”

“To ensure organizational effectiveness by correcting the employees based on the

standards set in order to improve their performance and suggesting the requiredchanges.”

3.3 OBJECTIVES OF THESTUDY:

“To measure the effectiveness of performance appraisal system at Sakaria Hospital,

Bangalore.”

“To analyze the factors which contribute towards the effectiveness of performance

appraisalsystem.”

“To suggest somemeasures for improving the factors contributing towards the

effectiveness of performance appraisal system at Sakaria Hospital,Bangalore.”

3.4 SCOPE OF THESTUDY:

“The study was carried out to evaluate the effectiveness of performance appraisal and

development programme conducted at Sakaria Hospital,Bangalore.”

“It helps to know the importance of performance appraisal system by considering both

on- the-job performance as well as the personal qualities of theemployees.”

“To improve the employee work performance by helping them to utilize their potential to

the maximum in carrying out the objectives of theorganization.”

“To evaluate the performance and provide valuable feedback to the employees in the

areas to be improved to efficiently achieve firm’smission.”

“To allow the management to make decisions based on the performance of the employees

relating to payroll and compensation, training and development, promotion, demotion,

transfer,etc……”

3.5 RESEARCH METHODOLOGY:

RESEARCH DESIGN “Descriptive research design.”

TYPE OF DATA Primary data- Questionnaire

and

Secondary data- Company website,

literature review and internet portals.3.

DATA COLLECTION TOOL Questionnaire.

SAMPLING TECHNIQUE “Census sampling.”

SAMPLING SIZE 50 employees.

SAMPLING UNIT Sakaria Hospital, Bangalore.

STATISTICAL TOOLS Tables, Charts, Graphs and Regression

Analysis

STATISTICAL PACKAGE SPSS, MS Excel

3.6 HYPOTHESIS:

HYPOTHESIS 1

H0: “There is no significant effect from Design of appraisal form on performance appraisal

system.”

H1: “There is a significant effect from Design of appraisal form on performance appraisal

system.”

HYPOTHESIS 2

H0: “There is no significant effect of Employee training and development on performance

appraisalsystem”.

H1: “There is a significant effect of Employee training and development on performance

appraisalsystem.”

3.7 LIMITATIONS OF THESTUDY:

“Time constraint was a major drawback as the period of research was limited to only six

weeks for datacollection, Also the outbreak of Novel Corona Virus made a Major

Drawback”

“The sample size was restricted only to 50employees.”

“”The chances of human error cannot be ruled out due to the possibility of

misrepresentation of the data by therespondents."”

3.8 CHAPTERSCHEME:

“Chapter 1: Introduction about the project, Industry and Company profile, Vision, Mission and

Quality policy, SWOT Analysis.

“Chapter 2: Conceptual background and Literature review.”

“Chapter 3: Research Design.”

“Chapter 4: Data Analysis and Interpretation.”

“Chapter 5: Summary of Findings, Conclusions and Suggestions.”

CHAPTER 4

“DATA ANALYSIS AND INTERPRETATION”

“DEMOGRAPHIC PROFILE OF THE RESPONDENTS:”

“Table No. 4.1

Gender of the respondents

Sl No Particulars Frequency Percentage

1. Male 21 42

2. Female 29 58

Source: Primary Data

Analysis:

“Table No. 4.1 shows that out of 50 respondents considered for data collection, 42% of the

respondents were male and 58% respondents were female.”

Chart no. 4.1

Gender of the Respondent

“Interpretation:

From the above table we can interpret out of the total respondents used for data collection,

majority of them were female and rest were male respondents.”

70

60

50

40

30

20

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0

Male

Female

1 2

Table No. 4.2

Age Group of the Respondents

Sl. No Particulars Frequency Percentage

1. Below 25 12 24

2. 25 to 34 21 42

3. 35 to 44 14 28

4. 45 and above 3 6


Analysis:

“From the above table no. 4.2, it can be analyzed that, out of 50 respondents, 24% of the

respondents belong to the age group of below 25, 42% of the respondents belong to the age

group of 25 to 34, 28% of the respondents belongs to the age group of 35 to 44 and 6% of the

respondents belong to the age group of 45 andabove.”

Chart no. 4.2

Age Group of the Respondents

“Interpretation:”

“From the above chart we can interpret that majority of the respondents belong to the age

groupof 25 to 34 being 42% while other 58% belongs to the various sub groups mentioned in the

table no.4.2.”

Below25 25to34 35to44 45and above

0

Frequency

Percentage

50

40

30

20

10

Table no. 4.3

Educational Qualification of the Respondents


1. SSLC 3 6

2. PUC 12 24

3. Graduation/

Diploma

22 44

4. Post Graduation 13 26


Analysis:

“Table no. 4.3 shows the educational qualification of the respondents. From the above table it

can be analyzed that out of 100%, 6% of the respondents have completed SSLC, 24% of the

respondents have completed PUC, 44% of the respondents have completed their graduation/

diploma and 26% of the respondents are postgraduates.”

Chart no.4.3

Educational Qualification of the Respondents

“Interpretation:”

“From the above chart no. 4.3, it is clear around 44% respondents have completed their

graduation/diploma and 26% have completed their post graduation while other 30% are under

graduates.”

50 45 40 35 30 25 20 15 10 5 0

Frequency

Percentage

Table no. 4.4

“Current Employment Status of the Employees”


1 Full-time 32 64

2 Part-time 6 12

3 Regular 10 20

4 Temporary 2 4


Analysis:

“The table no. 4.4 shows the current employment status of the employees where out of 50

employees/ respondents, 64% are full – time workers, 12% are part- time workers, 20% are

regular employees and 4% are temporary employees.”

Chart no. 4.4

“Current Employment Status of the Employees”

Interpretation:

“From the above chart no. 4.4 it is clear that about 64% of the employees are full – time workers

while others 46% of the employees fall under the category of part-time, regular and temporary

employees.”

70

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Current

employment status

Frequency

Current

employment status

Percentage

Table no. 4.5

Work Experience


1 Below 1 year 6 12

2 1 to 3 years 14 28

3 3 to 5 years 13 26

4 Above 5 years 17 34


Analysis:

“Table no. 4.5 shows the working experience of the employees in the organization where it can

be analyzed that amongst 50 total respondents, 12% employees fall into the category of working

experience of below one year, 28% employees fall under the category having working

experience of 1 to 3 years, 26% of the employees fall under the category having working

experience of 3 to 5 years, and 34% of the employees fall under the category having working

experience of more than 5years.”

Chart no. 4.5

Work Experience of the Employees

Interpretation:

“From the above chart no. 4.5 it is clear that majority of the employees fall under the category of

having working experience of more than 5 years where mostly these type of workers are doctors

or senior nursing staff.”

40

35

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10

5

0

Work experience

Frequency

Work experience

Percentage

Below1 1to3 3to5 Above5

year years years years

Table no. 4.6

How often is appraisal carried out in your Organization?


1 Once in 6 months 10 20

2 Once in a year 40 80


Analysis:

“The above table no. 4.6 shows how often the appraisal process is carried out in the organization

and with the help of the data collected from the respondents we can analyze that around 80% of

the employees says that it takes place once in a year and only 20% of the employees says once in

6months.”

Chart no. 4.6

How often is appraisal carried out in your organization?

Interpretation:

“From the above chart no. 4.6 we can interpret that performance appraisal carried out in the

organization is once in a year as around 80% of the employees agree for the same.”

Frequency Percentage

Once in 6 months

Once in a year

90

80

70

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40

30

20

10

0

Table no. 4.7

How would you rank the performance appraisal method in your organization?


1 Easy 21 42

2 Complicated 5 10

3 Efficient 24 48

4 Inefficient 0 0

Analysis:

“The above table no. 4.7 shows how the employees rank the performance appraisal carried out in

their organization where around 42% of the employees says that it is easy, 10% says it is

complicated, 48% says it is efficient and 0% says it is inefficient.”

Chart no. 4.7

How would you rank the performance appraisal method in your organization?

Interpretation:

“From the above chart no. 4.7, it is clear that majority of the employees says it is easy and

efficient and only like 10% of the employees feels it iscomplicated.”

Frequency

Percentage

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LIKERT QUESTIONS:

Table no.4.8

Attitude of the Employees

4.8.1: You are satisfied with the performance appraisal results of the organization.


1 Strongly Agree 22 44

2 Agree 20 40

3 Neutral 5 10

4 Disagree 2 4

5 Strongly disagree 1 2


Analysis:

“The above table no. 4.8.1 shows how well the employees are satisfied with the performance

appraisal results of the organization where the percentage goes as strongly agree is 44%, agree is

40%, neutral is 10%, disagree is 4% and strongly disagree is just 2%.”

Chart no.4.8.1

You are satisfied with the performance appraisal results of the organization.

Interpretation:

“Therefore, it is clear from the analysis results of the above table no.4.8.1 which shows the

attitude of the employees towards the performance appraisal results of the organization and

around 44% people out of the total 50 sampling size of 50 respondents have stronglyagreed and

50

45

40

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FREQUENCY

PERCENTAGE

Strongly Agree Neutral Disagree Strongly Agree disagree

hence we can say that they are satisfied with the performance appraisal results of the

organization.”

Table no. 4.8.2

“The criteria of performance appraisal is also considering the performance of the

employees”



2 Agree 39 78

3 Neutral 4 8

4 Disagree 1 2



Analysis:

“The above table no. 4.8.2 shows the criteria of performance appraisal is also considering the

performance of the employees or not. Therefore, around 12% of the respondents have opted for

strongly agree, 78% for agree, 8% are neutral, 2% respondents opt for disagree and nobody for

strongly disagree.” Chart no. 4.8.2

The“criteria of performance appraisal is also considering the performance of the employees

Interpretation:

“From the above chart no. 4.8.2 it is clear that around 78% of the respondents out of 100% have

agreed that the organization does consider the performance of the employees at the time of

performance appraisal in the organization. Hence we can conclude that the organization is not


FREQUENCY

PERCENTAGE

90 80 70 60 50 40 30 20 10

0

partial amongst the employees and they do take proper consideration regarding the employee’s

performance without any bias between them.”

Table no. 4.8.3

Are you satisfied with the outcomes of the appraisal?



2 Agree 18 36

3 Neutral 17 34

4 Disagree 2 4



Analysis:

“Table no. 4.8.3 shows whether the employees are satisfied with the performance appraisal

results or not wherein, around 22% respondents have strongly agreed, 36% respondents have

agreed, 34% respondents are neutral i.e., neither agree nor disagree, 4% have opted for disagree

and 4% of them have strongly disagreed.”

Chart no. 4.8.3

Are you satisfied with the outcomes of the appraisal?

Interpretation:

“Fromtheaboveanalysisresultwhichisalsoshownwiththehelpofthediagraminchartno.4.8.3showstha

taround36%oftherespondentsaresatisfiedwiththeoutcomesofperformance


FREQUENCY

PERCENTAGE

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5

0

appraisal and around 34% are neutral i.e., neither satisfied nor dissatisfied. Therefore, the

organization can take the necessary steps and find out what corrective measures have to be taken to

make the results of the performance appraisal more accurate and make their employees happy.”

Table no. 4.8.4

Do you think there is still scope to improve performance appraisal system



2 Agree 18 36

3 Neutral 12 24

4 Disagree 9 18



Analysis:

“The above table no. 4.8.4 shows whether there is still scope to improve the performance

appraisal system of the organization or not. Based on the response it is found that around 14% of

the respondents have strongly agreed, 36% of the respondents have agreed, 24% of the

respondents are neutral, 18% of the respondents have disagreed and around 8% of the

respondents have stronglydisagreed.”

Chart no. 4.8.4

Do you think there is still scope to improve performance appraisal system.

40

35

30

25

20

15

10

5

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FREQUENCY

PERCENTAGE

Strongly Agree Neutral DisagreeStrongly Agree disagree

Interpretation:

“From the above chart no. 4.8.4 it is clear that majority of the respondents have agreed that there

is still scope for improving the performance appraisal system in the organization. Therefore, the

organization can improve its performance appraisal system by taking necessary corrective

measures for further appraisal of theemployees.”

Table no. 4.9

Design of the appraisal form

4.9.1: All the goals and targets have been clearly expressed and assigned to me by the

management.



2 Agree 20 40

3 Neutral 6 12

4 Disagree 8 16



Analysis:

“The above table no. 4.9.1 shows whether all the goals and targets have been clearly expressed

and assigned to the employees by the management in the organization or not. Based on the

response it is found that out of 50 respondents around 32% of the respondents have strongly

agreed, 40% of the respondents have agreed, 12% of the respondents are neutral, 16% of the

respondents have disagreed and 0% of the respondents have stronglydisagreed.”

Chart no. 4.9.1

All the goals and targets have been clearly expressed and assigned to me by the

management.

Interpretation:

“Based on the analysis it is clear that majority of the respondents have agreed and they feel that

all the goals and targets or standards are clearly expressed and assigned to them by the

management and hence they have no issues with the communication issues between the

management and the respondents.”

Table no. 4.9.2

I feel the standards set for performance evaluation are pretty justifiable.



2 Agree 24 48

3 Neutral 13 26

4 Disagree 9 18



Analysis:

“From the above table no. 4.9.2, it can be analyzed that out of 50 respondents 6% have strongly

agreed with the standards set are justified, 48% have agreed, 26% are neutral, 18% respondents

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20

PERCENTAGE

FREQUENCY

10

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do not agree and only around 2% of the respondents strongly disagree with the above mentioned

statement.”

Chart no. 4.9.2

I feel the standards set for performance evaluation are pretty justifiable.

Interpretation:

“From the above results based on the analysis we can interpret that around 48% of the

respondents feel that the standards set for the performance evaluation are pretty justifiable.”

Table no. 4.9.3

The reliability of the factors considered in appraisal system is satisfactory.



2 Agree 16 32

3 Neutral 9 18

4 Disagree 11 22



Analysis:

“The above table no. 4.9.3 shows that the reliability of the factors considered in appraisal system

by the management are satisfactory or not. Based on the response it is found that out of 50

respondents around 20% of the respondents have strongly agreed, 32% of the respondents have

80

70

60

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40

30

20

10

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PERCENTAGE

FREQUENCY


agreed, 18% of the respondents are neutral, 122% of the respondents have disagreed and 8% of

the respondents have strongly disagreed.”

Chart no. 4.9.3

“The reliability of the factors considered in appraisal system is satisfactory.”

“Interpretation:

The results are quiet clear from the analysis which is also shown in the chart no. 4.9.3 where

majority of the respondents in the organization feel that the reliability of the factors considered

by the management for evaluating the performance appraisal results of the employees are

satisfactory. The management can further revise the factors, if necessary, to get more accurate

results.”

“Table no. 4.9.4

I feel the performance appraisal system set by the management is satisfactory.



2 Agree 17 34

3 Neutral 8 16

4 Disagree 8 16



60 50

40

30

20

PERCENTAGE

FREQUENCY

10

0


Analysis:

“The above table no. 4.9.4 shows the analysis results collected from the respondents based on

whether they feel the performance appraisal system set b the management is worth it or not or

whether they are satisfied or not. From the above results we got to know that out of 50

respondents around 22% respondents have strongly agreed, 34% of the respondents have agreed,

16% are neutral, 16% respondents didn’t agree, and around 12% of the respondents strongly

disagree.”

Chart no. 4.9.4

“I feel the performance appraisal system set by the management is satisfactory.”

Interpretation:

“From the above chart no. 4.9.4 it is quite clear that out of total 50 respondents, 34% of the

employees have agreed that the performance appraisal system set by the management is

satisfactory and they have no objections regarding such system.”


10

0

PERCENTAGE

FREQUENCY

60

50

40

30

20

Table no. 4.10

Employee Training and Development.

4.10.1: I feel training delivered after appraisal contributes in improving my performance.



2 Agree 22 24

3 Neutral 9 18

4 Disagree 6 12



Analysis:

“The above table no. 4.10.1, it can be said that, out of total 50 respondents 36% of the

respondents strongly agree with the above mentioned statement, 24% respondents agree, 18%

respondentsare neutral, 12% of the respondents don’t agree, and only 10% of the respondents

stronglydisagree.”

Chart no. 4.10.1

4.10.1: I feel training delivered after appraisal contributes in improving my performance.

Interpretation:

“From the above results it is clear that majority of the respondents have strongly agreed that the

training delivered after appraisal contributes in improving the employees performance. Hence,

the organization can rely on the same training methods and can improvise it if necessary.”

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FREQUENCY

PERCENTAGE

Strongly Agree Neutral DisagreeStrongly Agree disagree

Table no. 4.10.2

All my appraisal skills are revived by the management on a daily basis.



2 Agree 17 34

3 Neutral 10 20

4 Disagree 8 16



Analysis:

“From the above table no. 4.10.2, it can be said that, out of total 50 respondents 12% of the

respondents strongly agree with the above mentioned statement, 34% respondents agree, 20%

respondents are neutral, 16% of the respondents don’t agree, and only 18% of the respondents

strongly disagree.”

Chart no. 4.10.2

All my appraisal skills are revived by the management on a daily basis.

Interpretation:

“From the above results it is clear that majority of the respondents has agreed that all of their

appraisal skills are revived by the management on the daily basis so that they can meet the

objectives of the organization and targets set by the management considered for performance

appraisal more effectively.”

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Table no. 4.10.3

Training provided by the organization improves my motivation and knowledge.



2 Agree 10 20

3 Neutral 13 26

4 Disagree 6 12



Analysis:

“The above table no. 4.10.3 shows that out of total 50 respondents, 32% of the

employeesstrongly agree that training provided by the organization improves their motivation

and knowledge, wherein, 20% of the respondents selects the second option i.e., agreed, 26% of

the respondents are neutral, 12% of the respondents don’t agree and only 10% of the respondents

strongly disagree.”

Chart no. 4.10.3

Training provided by the organization improves my motivation and knowledge.

Interpretation:

“From the above results shown in the chart no. 4.10.3 shows that majority of the people i.e., out

of 50 respondents, 32% of the employees strongly agree with the statement that training provided

by the organization improves the motivation and knowledge of the employees.” Hence,the

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PERCENTAGE


organization can provide more of such trainings to the employees to enhance their skills and

make them feel more confident about their job.

Table no. 4.10.4

Appraisal training helps me to overcome weak areas related to my job.



2 Agree 21 42

3 Neutral 10 20

4 Disagree 6 12



Analysis:

“The above table no. 4.10.4 shows the analysis results collected from the respondents based on

whether they feel that the appraisal training helps them to overcome the weak areas related to

their job or not or. From the above results we got to know that out of 50 respondents around 20%

respondents have strongly agreed, 42% of the respondents have agreed, 20% are neutral, 12%

respondents didn’t agree, and around 6% of the respondents strongly disagree.”

Chart no. 4.10.4

Appraisal training helps me to overcome weak areas related to my job.

45

40

35

30

25

20

15

10

5

0

FREQUENCY

PERCENTAGE


Interpretation:

“From the above chart no. 4.10.4, we can interpret the results saying majority of the respondents

i.e., around 40% have agreed that appraisal training given by the management to them helps

them to overcome the weak areas related to their job, enhances their skills and make them more

competent in doing theirjob.”

Table no. 4.11

Feedback on performance by the management

4.11.1: Appraisal feedback provided by the management is an important factor to improve

my on-the-job performance.



2 Agree 9 18

3 Neutral 3 6

4 Disagree 5 10



Analysis:

“The above table no. 4.11.1 shows that out of total 50 respondents, 60% of the

employeesstrongly agree with the above mentioned statement, around 18% of the respondents

agree with the fact, 6% of the respondents are neutral, 10% respondents disagree and only 6% of

the respondents stronglydisagree.”

Chart no. 4.11.1

Appraisal feedback provided by the management is an important factor to improve my on-

the-job performance.

Interpretation:

“The results are quite clear from the above chart no. 4.11.1 which shows that around 60% of the

respondents out of total 100% strongly agree that the appraisal feedback provided by the

management is an important factor to improve their on-the-job performance. Hence the

organization should focus on providing more of such feedbacks to their employees to keep them

motivated.”

Table no. 4.11.2

I feel appraisal outcomes helps in diagnosing both organizational and individual problems.



2 Agree 25 50

3 Neutral 8 16

4 Disagree 5 10



Analysis:

“The above table no. 4.11.2 shows what the employees feel about the appraisal outcomes,

whether it helps them in diagnosing both organizational and individual problems or not. therefore

100 90

80

70

60

50

40

30

20

10

0

PERCENTAGE

FREQUENCY


50 respondents, 16% of the employees strongly agree, 50% of the respondents agree with the

statement, 16% respondents are neutral, 10% of the respondents disagree and only 8% of the

respondents strongly disagree.”

Chart no. 4.11.2

I feel appraisal outcomes helps in diagnosing both organizational and individual problems.

Interpretation:


of 50 respondents, 50% of the employees strongly feels that appraisal outcomes helps in

diagnosing both organizational as well as individual problems. Hence, the organization can opt

for such appraisal outcomes which can help them to retain more employees with their job in the

organization.”

Table no. 4.11.3

Interaction with the management enhances appraisal effectiveness.



2 Agree 19 38

3 Neutral 18 36

4 Disagree 2 4




20

10

0

PERCENTAGE

FREQUENCY

80

70

60

50

40

30

Analysis:

“The above table no. 4.11.3 shows that out of 50 respondents considered for data collection, 20%

of the respondents strongly agree, 38% of the respondents agree with the statement, 36% of the

respondents are neutral, 4% of the respondents don’t agree and 2% of the respondents strongly

disagree.”

Chart no. 4.11.3

Interaction with the management enhances appraisal effectiveness.

Interpretation:


of 50 respondents, 38% of the employees agrees that the interaction with the management

enhances their appraisal effectiveness. The employees feel more recognized in the organization

when the management interacts with them and rewards the best performance of the employees.”

60

50

40

30

20

10

0

PERCENTAGE

FREQUENCY


Table no. 4.11.4

Performance feedback motivates employees indirectly to perform better.



2 Agree 14 28

3 Neutral 11 22

4 Disagree 11 22



Analysis:




disagree.”

Chart no. 4.11.4

Performance feedback motivates employees indirectly to perform better.

Interpretation:


of 50 respondents, 28% of the employees agrees that the performance feedback provided by the

management post performance evaluation motivates the employees directly or indirectly to

perform better in their job.”


PERCENTAGE

FREQUENCY

45

40

35

30

25

20

15

10

5

0

Table no. 4.12

Linking rewards to performance appraisal system

4.12.1: I feel there exist a direct link between performance and pay in the organization.



2 Agree 15 30

3 Neutral 8 16

4 Disagree 7 14



Analysis:




disagree.”

Chart no. 4.12.1

I feel there exist a direct link between performance and pay in the organization.

Interpretation:

“From the above chart no. 4.12.1, we can interpret that majority of the respondents feel that there

exist a direct link between performance and pay in the organization. The rewards given to the

employees by the management is based on their performance post performance evaluation

results.”

35

30

25

20

15

10

5

0

FREQUENCY

PERCENTAGE


Table no. 4.12.2

Performance based pay is given on a flat rate to every employee



2 Agree 20 40

3 Neutral 17 34

4 Disagree 8 16



Analysis:

“The above table no. 4.12.2 shows that out of total of 50 respondents considered for data

collection, 4% of the respondents strongly agree, 40% of the respondents agree with the

statement, 34% of the respondents are neutral, 16% of the respondents don’t agree and 6% of the


Chart no. 4.12.2

Performance based pay is given on a flat rate to every employee

Interpretation:

“From the above chart no. 4.12.2, we can interpret that majority of the respondents feel that the

performance based pay is given on a flat rate to every employee without any bias.”


FREQUENCY

PERCENTAGE

45

40

35

30

25

20

15

10

5

0

Table no. 4.12.3

I’m satisfied the way my performance is appraised and rewarded.



2 Agree 13 26

3 Neutral 10 20

4 Disagree 7 14



Analysis:





Chart no. 4.12.3

“I’m satisfied the way my performance is appraised and rewarded.”

Interpretation:

“From the above chart no. 4.12.3, we can interpret that majority of the respondents strongly feel

they are satisfied the way their performance is appraised and rewarded. Therefore, in order to get

more effective results the organization can concentrate on the people who are dissatisfied and

improvise the areas they feel has to be revised.”


FREQUENCY

PERCENTAGE

40

35

30

25

20

15

10

5

0

Table no. 4.12.4

The performance based pay I earn will have an impact on my future performance



2 Agree 18 36

3 Neutral 9 18

4 Disagree 5 10



Analysis:





Chart no. 4.12.4

“The performance based pay I earn will have an impact on my future performance”

Interpretation:

“From the above chart no. 4.12.4, we can interpret that majority of the respondents feel the

performance based pay they earn will have an impact on their future performance. Hence, the

organization should be more careful with the performance evaluation of the employees because

any error occurred by the management will de-motivate the employees to perform better which

will have a direct impact on their future performance.”


FREQUENCY

PERCENTAGE

40

35

30

25

20

15

10

5

0

FACTOR ANALYSIS:

Descriptive Statistics

Mean Std. Deviation Analysis N

“I feel the standards set for performance evaluation are

pretty justifiable”

3.38 .923 50

“I feel the performance appraisal system set by

management issatisfactory”

3.38 1.323 50

“I feel training delivered after appraisal contributesin

improving my performance”

3.64 1.352 50

“Training provided by organization improves my

motivation andknowledge”

3.52 1.328 50

“Appraisal training helps me overcome weak areas

related to my job”

3.58 1.126 50

“The reliability of the factors considered in appraisal

system are satisfactory”

3.34 1.255 50

Correlation Matrix

a. Determinant = .646

KMO and Bartlett's Test

“Kaiser-Meyer-Olkin Measure of Sampling Adequacy.” .522

“Bartlett's Test of Sphericity Approx. Chi-Square” 20.161

df 15

Sig. .166

Communalities

Initial Extraction

“I feel the standards set for performance evaluation are pretty

justifiable”

1.000 .752

“I feel the performance appraisal system set by management is

satisfactory”

1.000 .891

“I feel training delivered after appraisal contributes in improving

my performance”

1.000 .701

“Training provided by organization improves my motivation and

knowledge”

1.000 .646

“Appraisal training helps me overcome weak areas related to my

job”

1.000 .562

“The reliability of the factors considered in appraisal system are

satisfactory”

1.000 .427

Extraction Method: Principal Component Analysis.

Total VarianceExplained

Initial Eigen values Extraction Sums of Squared Loadings

Compo

nent Total

% of Variance

Cumulative %

Total

% of

Variance

Cumulative

%

1 1.652 27.532 27.532 1.652 27.532 27.532

2 1.275 21.250 48.782 1.275 21.250 48.782

3 1.052 17.534 66.316 1.052 17.534 66.316

4 .826 13.760 80.076

5 .661 11.024 91.099

6 .534 8.901 100.000

Total VarianceExplained

Rotation Sums of Squared Loadings

Component Total % of Variance Cumulative %

26.904

48.187

66.316 18.129 1.088 3

21.283 1.277 2

26.904 1.614 1

Component Metric: 1 2 3

-.485

.862

-.251

-.047

.075

.048 -.132 .638 “The reliability of the factors considered in appraisal system

are satisfactory”

-.186 .722 “Appraisal training helps me overcome weak areas related

to my job”

.720 .354 “Training provided by organization improves my motivation

and knowledge”

.799 -.015 “I feel training delivered after appraisal contributes in

improving my performance”

.221 .314 “I feel the performance appraisal system set by management

is satisfactory”

-.132 .706 “I feel the standards set for performance evaluation are



Component


a. 3 components extracted.

6

5

4

Reproduced Correlations

I feel Trainin

training g

I feel the delivere provide The

standards d after d by reliability

set for I feel the appraisa organiz of the

performa performanc l ation Appraisal factors

nce e appraisal contribu improv training considered

evaluatio system set tes in es my helps me in

n are by improvi motivat overcome appraisal

pretty manageme ng my ion and weak areas system are

justifiabl nt is perform knowle related to satisfactor

e satisfactory ance dge my job y

“Reprod “I feel the .752a -.226 .006 .177 .445 .445

uced standards set for

Correla performance

Tion” evaluation are


“I feel the -.226 .891a -.045 .230 .213 .213

performance

appraisal system

set by

management is

Satisfactory”

“I feel training .006 -.045 .701a .582 -.127 -.127

delivered after

appraisal

contributes in

improving my

Performance”

“Training .177 .230 .582 .646a .129 .129

provided by

organization

improves my

motivation and

Knowledge”

“Appraisal

training helps me

overcome weak

areas relatedto

my job”

.499 .250 -.178 .118 .489 .489

The reliability of

the factors

considered in

appraisalsystem

are satisfactory

.445 .213 -.127 .129 .427a .427a

Residua

lb

I feel the

standards setfor

.155 -.008 -.059 -.154 -.154

performance

evaluation are

pretty justifiable

I feel the .155 .055 -.101 -.071 -.071

performance

appraisal system

set by

management is

satisfactory

I feel training -.008 .055 -.316 .092 .092

delivered after

appraisal

contributes in

improving my

performance

Training -.059 -.101 -.316 -.078 -.078

provided by

organization

improves my

motivation and

knowledge

Appraisal -.146 -.086 .064 -.010 -.285 -.285

training helps me

overcome weak

areas related to

my job

The reliability of

the factors

considered in

appraisalsystem

are satisfactory

-.154 -.071 .092 -.078


a. Reproducedcommunalities

b. Residuals are computed between observed and reproduced correlations. There are

13 (86.0%) non redundant residuals with absolute values greater than0.05.

Rotated Component Matrix


Rotation Method: Varimax with Kaiser Normalization.a

a. Rotation converged in 4 iterations.

Component Transformation Matrix

Component 1 2 3

1 .957 .193 .215

2 -.235 .953 .191

3 -.168 -.233 .958


Rotation Method: Varimax with Kaiser Normalization.

Component

1 2 3

-.339

.935

-.092

.169

.191

.158 -.013 .634 “The reliability of the factors considered in appraisal system are

satisfactory”

-.055 .723 “Appraisal training helps me overcome weak areas related to my

job”

.766 .177 “Training provided by organization improves my motivation and

knowledge”

.817 -.160 “I feel training delivered after appraisal contributes in improving my

performance”

.070 .104 “I feel the performance appraisal system set by management is

satisfactory”

.123 .789 “I feel the standards set for performance evaluation are pretty

justifiable”

HYPOTHESIS TESTING:

HYPOTHESIS 1

H0: “There is no significant effect from Design of appraisal form on performance appraisal

system.”

H1: “There is a significant effect from Design of appraisal form on performance appraisal system.”

CHI-SQUARE TEST

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

“How would you rank the

Performance Appraisal method in

your organisation? * I feel the

performance appraisal systemset

by management is satisfactory”

50 100.0% 0 0.0% 50 100.0%



your organisation? * I feel the

standards set for performance

evaluation are pretty justifiable”

50 100.0% 0 0.0% 50 100.0%

“How would you rank the Performance Appraisal method in your organisation? * I feel the

performance appraisal system set by management is satisfactory”

Crosstab

Count I feel the performance appraisal system set by

management is satisfactory

Agree

Disagree

Neutral

Strongly

Agree

“How would you rank

the Performance

Appraisal methodin

your organisation?”

Complicated 2 2 1 0

Easy 6 2 4 6

Efficient 9 4 3 5

Total 17 8 8 11

Crosstab

Count

I feel the performance

appraisal system set by

management is

satisfactory

Strongly Disagree

Total

How would you rank the Performance

Appraisal method in your organisation?

Complicated 0 5

Easy 3 21

Efficient 3 24

Total 6 50

Chi-Square Tests

Value

df

Asymptotic

Significance (2-

sided)

Pearson Chi-Square 5.258a 8 .730

Likelihood Ratio 6.485 8 .593

N of Valid Cases 50

a. 12 cells (80.0%) have expected count less than 5. The minimum expected count is .60.

Symmetric Measures

Value

Approximate

Significance

Nominal by

Nominal

Phi .324 .730

Cramer's V .229 .730

N of Valid Cases 50

“How would you rank the Performance Appraisal method in your organisation? * I feel the

standards set for performance evaluation are pretty justifiable”

Crosstab

Count I feel the standards set for performance

evaluation are pretty justifiable

Agree

Disagree

Neutral

Strongly

Agree


Performance Appraisal

method in your

organisation?”

Complicated 4 0 1 0

Easy 13 3 4 1

Efficient 7 6 8 2

Total 24 9 13 3

Crosstabs:

Count

I feel the standards

set for performance

evaluation are pretty

justifiable

Strongly Disagree

Total


Performance Appraisal methodin


Complicated 0 5

Easy 0 21

Efficient 1 24

Total 1 50

Chi-Square Tests

Value

df

Asymptotic

Significance

(2-sided)



N of Valid Cases 50


Symmetric Measures

Value

Approximate

Significance

Nominal by

Nominal

Phi .400 .432


N of Valid Cases 50

ORDINAL REGRESSION:


N Marginal Percentage




Complicated 5 10.0%

Easy 21 42.0%

Efficient 24 48.0%

““I feel the standards set for

performance evaluation are pretty

justifiable”

Agree 24 48.0%

Disagree 9 18.0%

Neutral 13 26.0%

Strongly Agree 3 6.0%

Strongly Disagree 1 2.0%

“I feel the performance appraisal

system set by management is

satisfactory”

Agree 17 34.0%

Disagree 8 16.0%

Neutral 8 16.0%



“All the goals and targets have been

clearly expressed and assigned to me

Agree 20 40.0%

Disagree 8 16.0%

by management” Neutral 6 12.0%


“The reliability of the factors

considered in appraisal system are

satisfactory”

Agree 16 32.0%

Disagree 11 22.0%

Neutral 9 18.0%



Valid 50 100.0%

Missing 0

Total 50

Model Fitting Information

-2 Log

Model Likelihood

Chi-Square

df

Sig.

Intercept

Only

84.752

Final 66.685 18.067 15 .259

Link function: Logit.

Goodness-of-Fit

Chi-Square df Sig.

Pearson 108.296 53 .000

Deviance 57.896 53 .299


Pseudo R-Square

.191


Cox and Snell .303

Nagelkerke .357

McFadden

Parameter Estimates

Estimat

e

Std.

Error

Wald

df

Sig.

95% Confidence

Interval

Lower

Bound

Upper

Bound

Thres

hold

[“HowwouldyourankthePe

r

formanceAppraisalmethod

inyourorganisation =

Complicated”]

-23.408 2.757 72.082 1 .000 -28.812 -18.004

[“HowwouldyourankthePe

r

formanceAppraisalmethod

inyourorganisation =

Easy”]

-20.485 2.647 59.873 1 .000 -25.674 -15.297

Locat

ion

[“Ifeelthestandardssetforpe

r

formanceevaluationarepret

tyjustifiable=Agree”]

-21.213 1.648 165.749 1 .000 -24.442 -17.983


r


tyjustifiable=Disagree”]

-18.327 1.813 102.228 1 .000 -21.879 -14.774


r


tyjustifiable=Neutral”]

-18.841 1.722 119.766 1 .000 -22.215 -15.467


r


tyjustifiable=Strongly

Agree”]

-18.176 .000 . 1 . -18.176 -18.176


r


tyjustifiable=Strongly

Disagree”]

0a . . 0 . . .

[“Ifeeltheperformanceappr

a

isalsystemsetbymanageme

ntissatisfactory=Agree”]

-.038 1.483 .001 1 .980 -2.944 2.868

[“Ifeeltheperformanceappr

a


ntissatisfactory=Disagree”]

.325 1.551 .044 1 .834 -2.716 3.365

[Ifeeltheperformanceappra


ntissatisfactory=Neutral]

-.779 1.717 .206 1 .650 -4.144 2.587



ntissatisfactory=Strongly

Agree]

.271 1.309 .043 1 .836 -2.295 2.837



ntissatisfactory=Strongly

Disagree]

0a . . 0 . . .

[Allthegoalsandtargetshav

ebeenclearlyexpressedand

assignedtomebyma=Agree

]

-2.280 .969 5.534 1 .019 -4.180 -.380



assignedtomebyma=Disag

ree]

-1.583 1.169 1.834 1 .176 -3.874 .708



assignedtomebyma=Neutr

al]

-1.502 1.327 1.281 1 .258 -4.102 1.099



assignedtomebyma=Stron

gly Agree]

0a . . 0 . . .

[Thereliabilityofthefactors

consideredinappraisalsyste

maresatisfac=Agree]

1.938 1.631 1.412 1 .235 -1.259 5.134



maresatisfac=Disagree]

.352 1.693 .043 1 .835 -2.966 3.669



maresatisfac=Neutral]

.602 1.595 .142 1 .706 -2.524 3.727

[“Thereliabilityofthefactor

s


maresatisfac=Strongly

Agree”]

-.749 1.546 .234 1 .628 -3.780 2.282

[“Thereliabilityofthefactor

s


maresatisfac=Strongly

Disagree”]

0a . . 0 . . .


a. This parameter is set to zero because it is redundant.

Test of Parallel Linesa

-2 Log

Model Likelihood

Chi-Square

df

Sig.

Null

Hypothesis

66.685

General 37.770b 28.915c

15 .016

“The null hypothesis states that the location parameters (slope

coefficients) are the same across response categories.a

a. Link function:Logit.”

b. “The log-likelihood value cannot be further increased after

maximum number ofstep-halving.”

c. “The Chi-Square statistic is computed based on the log-

likelihood value of the last iteration of the general model. Validity

of the test isuncertain.”

Analysis:

“From the above mentioned tests for hypothesis 1, the value of factor analysis and chi- square

test is greater than 0.05 which means there is a strong and positive relationship between design of

the appraisal form and performance appraisal. So, therefore we can accept the alternative

hypothesis (H1) and reject the null hypothesis (H0).”

HYPOTHESIS 2

H0: “There is no significant effect of Employee training and development on performance

appraisalsystem.”

H1: “There is a significant effect of Employee training and development on performance

appraisalsystem.”

CHI-SQUARE TEST:


Cases

Valid Missing Total

N Percent N Percent N Percent

How often is appraisal carried out

in your organisation? * Appraisal

training helps me overcomeweak

areas related to my job

50 100.0% 0 0.0% 50 100.0%


in your organisation? * Training

provided by organizationimproves

my motivation and knowledge

50 100.0% 0 0.0% 50 100.0%

“How often is appraisal carried out in your organisation? * Appraisal training helps me

overcome weak areas related to my job”

Count

Crosstab

Appraisal training helps me overcome

weak areas related to my job

Agree

Disagree

Neutral

Strongly

Agree

How often is appraisal

carried out in your

organisation?

Once in 6 months 4 1 1 4

Once in a year 17 5 9 6

Total 21 6 10 10

Crosstab

Count

Appraisal training helps me

overcome weak areas

related to my job

Strongly Disagree

Total


in your organisation?

Once in 6 months 0 10

Once in a year 3 40

Total 3 50

Chi-Square Tests

Value

df

Asymptotic

Significance

(2-sided)



N of Valid Cases 50


Symmetric Measures

Value

Approximate

Significance

Nominal by

Nominal

Phi .280 .416


N of Valid Cases 50

“How often is appraisal carried out in your organisation? * Training provided by

organization improves my motivation and knowledge”

Crosstab

Count Training provided by organization

improves my motivation and

knowledge

Crosstab

Count

Training provided by organization improves

my motivation and knowledge

Agree Disagree Neutral

How often is appraisal

carried out in your

organisation?

Once in 6 months 0 2 2

Once in a year 10 4 11

Total 10 6 13

Strongly Agree

Strongly

Disagree

Total

How often is appraisal Once in 6 months 6 0 10

carried out in your Once in a year

organisation?

10 5 40

Total 16 5 50

Chi-Square Tests

Value

df

Asymptotic

Significance

(2-sided)



N of Valid Cases 50

a. 7 cells (70.0%) have expected count less than 5. The minimum expected count is 1.00.

Symmetric Measures

Value

Approximate

Significance

Nominal by

Nominal

Phi .391 .105


N of Valid Cases 50

ORDINAL REGRESSION:


N

Marginal

Percentage

How often is appraisal carried out in your

organisation?

Once in 6 months 10 20.0%

Once in a year 40 80.0%

I feel training delivered after appraisal

contributes in improving myperformance

Agree 12 24.0%

Disagree 6 12.0%

Neutral 9 18.0%



All my appraisal skills are revived by the

management on a daily basis

Agree 17 34.0%

Disagree 8 16.0%

Neutral 10 20.0%



Training provided by organization improves my

motivation and knowledge

Agree 10 20.0%

Disagree 6 12.0%

Neutral 13 26.0%



Appraisal training helps me overcome weak

areas related to my job

Agree 21 42.0%

Disagree 6 12.0%

Neutral 10 20.0%



Valid 50 100.0%

Missing 0

Total 50

Model Fitting Information

-2 Log

Model Likelihood

Chi-Square

df

Sig.

Intercept

Only

47.843

Final 1.622 46.221 16 .000


Goodness-of-Fit

Chi-Square df Sig.

Pearson .000 22 1.000

Deviance .000 22 1.000


Pseudo R-Square

Cox and Snell .603

Nagelkerke .954

McFadden .924


Parameter Estimates

Estimate

Std. Error

Wal

d

df

Sig.

95% Confidence

Interval

Lower

Bound

Upper

Bound

Thres[Howoftenisappraisa

hold lcarriedoutinyourorg

anisation = Oncein

6 months]

-139.855 41183.820 .000 1 .997 -80858.659 80578.948

Locat

ion

[Ifeeltrainingdeliver

edafterappraisalcontr

ibutesinimprovingm

yperf=Agree]

-21.659 14657.397 .000 1 .999 -28749.628 28706.311



ibutesinimprovingm

yperf=Disagree]

-37.442 14367.643 .000 1 .998 -28197.504 28122.620



ibutesinimprovingm

yperf=Neutral]

-41.234 .000 . 1 . -41.234 -41.234

[Ifeeltrainingdeliver -20.011 20359.720 .000 1 .999 -39924.330 39884.307


ibutesinimprovingm

yperf=Strongly

Agree]

[Ifeeltrainingdeliver 0a . . 0 . . .


ibutesinimprovingm

yperf=Strongly

Disagree]

[Allmyappraisalskill 55.437 19543.709 .000 1 .998 -38249.529 38360.403

sarerevivedbythema

nagementonadailyba

sis=Agree]

[Allmyappraisalskill 146.678 .000 . 1 . 146.678 146.678

sarerevivedbythema

nagementonadailyba

sis=Disagree]

[Allmyappraisalskill 18.850 18209.158 .000 1 .999 -35670.443 35708.144

sarerevivedbythema

nagementonadailyba

sis=Neutral]

[Allmyappraisalskill 37.786 .000 . 1 . 37.786 37.786

sarerevivedbythema

nagementonadailyba

sis=Strongly Agree]

[Allmyappraisalskill 0a . . 0 . . .

sarerevivedbythema

nagementonadailyba

sis=Strongly

Disagree]

[Trainingprovidedby -57.127 .000 . 1 . -57.127 -57.127

organizationimprove

smymotivationandkn

owledge=Agree]

[Trainingprovidedby -150.992 14456.476 .000 1 .992 -28485.165 28183.181

organizationimprove

smymotivationandkn

owledge=Disagree]

[“Trainingprovidedb

y

-117.029 18912.768 .000 1 .995 -37185.372 36951.314

organizationimprove

smymotivationandkn

owledge=Neutral”]

[“Trainingprovidedby

-115.298 14967.809 .000 1 .994 -29451.664 29221.068

organizationimprove

smymotivationandkn

owledge=Strongly

Agree”]

[“Trainingprovidedb

y

0a . . 0 . . .

organizationimprove

smymotivationandkn

owledge=Strongly

Disagree”]

[Appraisaltraininghe -39.646 28731.325 .000 1 .999 -56352.008 56272.715

lpsmeovercomeweak

areasrelatedtomyjob

=Agree]

[Appraisaltraininghe 30.233 40453.910 .000 1 .999 -79257.973 79318.440

lpsmeovercomeweak

areasrelatedtomyjob

=Disagree]

[Appraisaltraininghe 30.565 41122.151 .000 1 .999 -80567.370 80628.501

lpsmeovercomeweak

areasrelatedtomyjob

=Neutral]

[Appraisaltraininghe -79.485 39687.587 .000 1 .998 -77865.726 77706.757

lpsmeovercomeweak

areasrelatedtomyjob

=Strongly Agree]

[Appraisaltraininghe 0a . . 0 . . .

lpsmeovercomeweak

areasrelatedtomyjob

=Strongly Disagree]


a. This parameter is set to zero because it is redundant.

Test of Parallel Linesa

-2 Log

Model Likelihood

Chi-Square

df

Sig.

Null

Hypothesis

1.622

General 1.622 .000 0 .

“The null hypothesis states that the location parameters (slope

coefficients) are the same across response categories.a”

a. Link function: Logit.

Analysis:

“From the above mentioned tests for hypothesis 1, the value of factor analysis and chi- square

test is greater than 0.05 which means there is a strong and positive relationship between

employee training and development and performance appraisal. So, therefore we can accept the

alternative hypothesis (H1) and reject the null hypothesis (H0).

“

CHAPTER 5

FINDINGS, SUGGESTIONS, AND CONCLUSION

5.1 SUMMARY OF FINDINGS:

“From the analysis it was found that out of the total respondents used for data collection,

majority of them were female around 58% and rest were malerespondents.”

“It was found that majority of the respondents belong to the age group of 25 to 34 being 42%

while other 58% belongs to the various other subgroups.”

“From the analysis it is clear that around 44% respondents have completed their

graduation/diploma and 26% have completed their post graduation while other 30% are

undergraduates.”

“It was found that about 64% of the employees are full – time workers while others 46% of

the employees fall under the category of part-time, regular and temporaryemployees.”

“Majority of the employees fall under the category of having working experience of more

than 5 years where mostly these types of workers are doctors or senior nursingstaff.”

“Performance appraisal carried out in the organization is once in a year as around 80% of the

employees agree for thesame.”

“Majority of the employees says that the performance appraisal process is easy andefficient.”

“Out of total respondents around 44% have strongly agreed that the attitude of the employees

depend upon the performance evaluation results. Hence we can say that they are satisfied

with the performance appraisal results of theorganization.”

“Based on the results of the above chart no. 4.8.2 we can conclude that the organization is not

partial amongst the employees and they do take proper consideration regarding the

employee’s performance without any bias betweenthem.”

“From the above chart no. 4.8.4 it is clear that majority of the respondents have agreed that

there is still scope for improving the performance appraisal system in the organization.

Therefore, the organization can improve its performance appraisal system by taking

necessary corrective measures for further appraisal of theemployees.”

“Majority of the respondents have agreed and they feel that all the goals and targets or

standards are clearly expressed and assigned to them by the management and hence they

have no issues regarding communication with themanagement.”

“From the above results based on the analysis we can interpret that around 48% of the

respondents feel that the standards set for the performance evaluation are prettyjustifiable.”

“Majority of the respondents in the organization feel that the reliability of the factors

considered by the management for evaluating the performance appraisal results of the

employees is satisfactory. The management can further revise the factors, if necessary, to get

more accurateresults.”

“Out of total 50 respondents, 34% of the employees have agreed that the performance

appraisal system set by the management is satisfactory and they have no objections regarding

suchsystem.”

“As majority of the respondents have strongly agreed that the training delivered after

appraisal contributes in improving the employee’s performance. Hence, the organization can

rely on the same training methods and can improvise it ifnecessary.”

“Majority of the respondents has agreed that all of their appraisal skills are revived by the

management on the daily basis so that they can meet the objectives of the organization and

targets which are considered for performance appraisal moreeffectively.”

“Out of 50 respondents, 32% of the employees strongly agree that training provided by the

organization improves the motivation and knowledge of the employees. Hence, the

organization can provide more of such trainings to the employees to enhance their skills and

make them feel more confident about theirjob.”

“Around 40% have agreed that appraisal training given by the management to them helps

them to overcome the weak areas related to their job, enhances their skills and make them

more competent in doing theirjob.”

“Around 60% of the respondents strongly agree that the appraisal feedback provided by the

management is an important factor to improve their on-the-job performance. Hencethe

organization should focus on providing more of such feedbacks to their employees to keep

them motivated.”

“Around 50% of the employees strongly feels that appraisal outcomes helps in diagnosing

both organizational as well as individual problems. Hence, the organization can opt for such

appraisal outcomes which can help them to retain more employees with their job in the

organization.”

“Out of 50 respondents, 38% of the employees agrees feel more recognized in the

organization when the management interacts with them and rewards the best performance of

the employees.”

“Around 28% of the employees agrees that the performance feedback provided by the

management post performance evaluation motivates the employees directly or indirectly to

perform better in theirjob.”

“Majority of the respondents feel that there exist a direct link between performance and pay

in the organization. The rewards given to the employees by the management is based on their

performance post performance evaluationresults.”

“From the above chart no. 4.12.2, we can interpret that majority of the respondents feel that

the performance based pay is given on a flat rate to every employee without anybias.”

“Majority of the respondents strongly feel they are satisfied the way their performance is

appraised and rewarded. Therefore, in order to get more effective results the organization can

concentrate on the people who are dissatisfied and improvise the areas they feel has to be

revised.”

“From the above chart no. 4.12.4, we can interpret that majority of the respondents feel the

performance based pay they earn will have an impact on their future performance. Hence, the

organization should be more careful with the performance evaluation of the employees

because any error occurred by the management will de-motivate the employees to perform

better which will have a direct impact on their futureperformance.”

“As both the hypothesis testing results are greater than 0.05%, it shows that the design of the

appraisal form and training and development considered as the factors of the study amongst

all has a positive relationship and a strong impact on performance appraisal system set by the

organization.”

5.2 SUGGESTIONS:

“Performance appraisal should be transparent, timely and effective for theemployees.”

“Employees should be made more aware about the appraisal process andbenefits.”

“To make the appraisal results more accurate the organization can also adopt a 360

degree appraisalmethod.”

“The organization should continue to provide same training or counseling to the

employees afterappraisal.”

“Employees should be given feedback regarding their appraisal. This will help them to

improve their weak areas in performing theirjob.”

“The frequency of training program for the appraiser should be increased and these

sessions should be madeinteractive.”

“Constant monitoring of the appraisal system should be done throughdiscussions.”

“Employees should be informed that appraisal is not only related to monetary

benefitsbut it can also be non-monetaryones.”

5.3 CONCLUSION:

“Performance Appraisal is the process of assessing employee performance by way of

comparing present performance with already established standards which have been already

communicated to employees, subsequently providing feedback to employees about their

performance level for the purpose of improving their skills and knowledge through training and

motivation.”

“As the objectives of the study is to analyze the factors which contributes towards the

effectiveness of performance appraisal system, the results of the same has been analyzed with the

help of questionnaire and few statistical tests including factor analysis, chi-square test and

ordinal regression based on the data collected it was found that all these factors considered have

a very strong impact on the performance appraisal system of theorganization.”

“Hence, the organization is doing a great job in implementing all these factors and

keeping their employees and working conditions of the organization extremely eminent.”

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