17-03-2011, 10:17 AM
Presented by:
Gaurav Mathur
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Study on impact assessment of performance appraisal system on productivity standards of employees.
1. Introduction
Human Resource Development is the basis of success of any organization. HRD helps to enhance employee’s effectiveness and helps to achieve organizational goals. Now with the emergence of so-called “NEW ECONOMY”, the increasing role of knowledge in industry is becoming obvious. In the emerging knowledge age, incessant learning by employees through effective Training and Development is going to be a key to survival and growth for organizations. Without effective Training and Development no enterprise can claim to be giving due importance to HRD.
Performance appraisal can be defined as the process of evaluating the performance of an employee & communicating the result of the evaluation to him for the purpose of rewarding & developing the employee. According to Michael Armstrong “Performance appraisal is a formal assessment & rating of individual by their managers at usually at annual review meeting.” Performance can be defined as the degree of accomplishment of tasks by an employee in his job. In some organizations it is measure of the result achieved & target accomplished whereas in others, it is a measure of employee efforts & behavior. However most organizations use a combination of both efforts & results.
Performance appraisal in the real sense can be carried out only when the employees are provided with the required amount of training. In the unfolding economic scenario it is increasingly being realized that employees are the most precious assets of any company. Any investment in introducing performance appraisal techniques is worth only when the above mentioned criterion is fulfilled. Every organization nowadays is using various methods for appraising the performance of the employees so that the real potential of the human asset can be known and utilized in the proper way. Performance appraisal not only evaluates the work done by the employees but also tries to boost the morale and motivate them to do their best. The methods used by the organization should be communicated to all the employees who come under its purview. They should be satisfied with the procedure and if they are not then it should be looked upon that what are the reasons behind it and what changes are to be brought about. Performance appraisal has a very important aspect to it and that is development of the employees.
1.1 Problem Statement:
Employee performance appraisal, whereby a superior evaluates the work performance of subordinates, is one of the most common management practices utilized in organizations. It appears that an effectively designed & implemented performance appraisal system can provide both organization & employees satisfaction & hence increase the productivity standards. But an organization faces following challenges to effectively implement a performance appraisal system:
Determining the evaluation criteria: Identification of the appraisal criteria is one of the biggest problems faced by the top management.
Create a rating instrument: The purpose of the Performance appraisal process is to judge the performance of the employees rather than the employee. The focus of the system should be on the development of the employees of the organization.
Lack of competence: Top management should choose the raters or the evaluators carefully. They should have the required expertise, experience and the knowledge to decide the criteria accurately.
Errors in rating and evaluation: Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait influencing the evaluator’s rating for all other traits) etc. may creep in the appraisal process.
So this research will be focused on the effectiveness of performance appraisal system in organization under study & hence its impact on productivity standards of employees will be studied which will be useful for strengthening of Human resource of organization
1.2 Objectives:
1. To study the various types of performance appraisal methods being used at Subros Ltd.
2. To evaluate the fairness in appraisal system used in Subros Ltd.
3. To determine whether the performance appraisal system of Subros Ltd. increase the productivity of employees or not .
2. Review of literature
Walsh , Marie Burns (2003) gathered view point of different employees from different sectors at all managerial levels. His research was for the perception of employees regarding fairness & satisfaction with employee performance appraisal.
Inderrieden, Edward J., Keaveny, Timothy J. & Allen, Robert E. (1988) talked about & researched on impact of several aspects of the appraisal process on three outcome measures: satisfaction with the appraisal process, fairness of ratings and motivation to improve performance.
Ishaq, Hafiz Muhammad., Iqbal, Muhammad Zahid. & Zaheer, Arshad (2009) studied the outcomes of performance appraisal and exploring factors that can make harm to the PA effectiveness in the perspective of Pakistani public and private sector organizations.
Khan, Ayaz (2007) written a report on performance appraisal’s relation with productivity and job Satisfaction.
Sanchez, Ambrose G.(2007) talked about the performance apraisal’s relation with productivity of employees in an organization.
3. Research Methodology:
3.1 Research Design:
Research would be explanatory in nature considering the scope and nature of study to determine relation between performance appraisal system & productivity standards of employees. Emphasis would be on studying various performance appraisal used in the organization, fairness in rating system & their impact on employee’s performance standards.
3.2 Information required:
Information would be required regarding performance appraisal system prevailing in the company & what employees think about it. Information of various performance appraisal systems are also required. Results & findings of previous researches in this field would be of great use for this research. Both primary and secondary data would be used.
(a) Secondary data sources:
Secondary data would be collected on technical aspects required for knowledge of Performance appraisal techniques through Internet, Books & Journals.
(b) Primary data sources:
Primary data would be collected for the first hand information regarding appraisal system through employees of the organization.
3.3 Area of study:
Area of this study would be Noida(U.P.) Unit of a private organization Subros Ltd.
3.4 Research method:
Interviews of employees would be carried out using questionnaire on the following parameters:
• Sociability of employees
• Accuracy of Rating
• Explanation of rating decision
• Providing Feedback
3.5 Sampling plan:
Universe: Subros Ltd.
Sampling Units:
Employees of Subros Ltd.
Sample size: 100
Top level Managers
Middle level Managers
Lower Level Managers
Non Managerial Employees
3.6 Sampling technique:
A mixed approach of both purposive & convenience sampling would be used to select the sample units.
3.7 Research Instrument:
A well structured questionnaires containing close ended question shall be prepared for taking in-depth interviews.
3.8 Analytical tools:
For analyzing the data & testing the validity of hypothesis, statistical tool that will be used is Chi Square test.
3.9 Duration of study:
The period of study shall be from 6th March to 30th May, 2011.
