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A STUDY ON
DIFFERENT APPROACHES OF
PERFORMANCE APPRAISALS:
A SPECIFIC STUDY IN
SOFTWARE INDUSTRY
Project Synopsis checklist
1. TITLE OF THE PROJECT ...3
2. EXECUTIVE SUMMARY ...3
3. STATEMENT ABOUT THE PROBLEM ...4
4. RESEARCH METHODOLOGY...6
5. QUESTIONNAIRE ...9
6. CHAPTERISATION SCHEME ... 16
6.1. Introduction ... 16
6.1.1 Background of the Study ... 16
6.1.2 Introduction to the IT System?... 16
6.2. Research Design ... 17
6.3. Company profile ... 17
6.4. APPROACHES OF PERFORMANCE APPRAISAL ... 17
6.5. Conclusion... 18
6.6. Bibliography & Annexure ... 18
6.6.1 List of Tables ... 18
6.6.2 List of figures ... 18
6.6.3 Questionnaire ... 18
7. PERFORMA FOR SYNOPSIS OF PROJECT WORK ... 18
8. Guides Resume... 19
(This Project Synopsis is submitted in partial fulfillment of the requirement of Master of Business Administration, Institute Of Management Technology Centre Distance Learning, Ghaziabad)
1. TITLE OF THE PROJECT
A STUDY ON DIFFERENT APPROACHES OF PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION: A SPECIFIC STUDY IN SOFTWARE AND
COMMUNICATION INDUSTRY
2. EXECUTIVE SUMMARY
Performance appraisal is an important HRD mechanism. It is the process of evaluating the performance of employees in terms of the requirements of the job for which they are employed for administrative purpose, including suitable placement, selection, promotion, giving financial rewards and other action which require differential treatment between the members if a group as distinguished from actions affecting all the members equally. Earlier performance appraisal was considered as a simple and confidential method of rating the job performance of individual employees by their superiors for the purpose of giving those remarks and rewards. Early appraisal systems stressed assessment of personality tracts, which were difficult not only to measure but also to relate constructively to the job itself. The purpose of performance evaluation is to generate information to support administrative decisions. The difficulties in measuring performance in software companies like the performance evaluations are highly subjective. Goal setting is ineffective when goals are too simple, when goals of not constitute the goal job, when goal attainment is difficult to prove or measure, when performance is the result of term efforts, peer and subordinate rating not followed no incentive for performance, implementation of the appraisal system may not be as planned because of time constraint and span of reports. Over a period of time appraisal become a ritual.
To address the above a study was conducted to study the different approaches of appraisals adopted by software companies. A sample of 30 software companies was taken. A structure questionnaire was administered to HR managers/ executives of different companies to elicit the information.
Major findings of the study include the most common type of appraisal is the open system followed by MBO, a few companies followed 360 feedback while most of the companies are planning to implement this powerful new model for employee assessment and performance improvement. The positive areas/benefits of the appraisal system followed included training and development inputs, career planning, and objective I setting etc.
The criteria or measures to evaluate an employee in most of the companies are technical competence, performance, achievement vs. objectives, key result areas set at the beginning of a specific period, forming result oriented areas, leadership skills, team work, attitude are behavior oriented areas compensation increase is related to performance and depended on the performance code/rating give. Target is set for employee being appraised for a period of 6 months; checklist for carrying out appraisals and carrier planning is followed.
360° feedback process gives an all round perspective restricting the inconsistency factor that exist in traditional appraisal system. Organizations remove layers of management, flatten their structure, and begin using self-directed terms; the, only practical option for performance feedback is from multiple sources. As organization changes their culture to align with their vision and values, 360° feedbacks becomes an ideal choice to communicate the new competencies required by the new values.
3. STATEMENT ABOUT THE PROBLEM
The research intends to study the different approaches of appraisals adopted by software Companies and employee attitude, employee Satisfaction and industrial morale. It also analyses the most commonly occurring errors within performance appraisal methods and to understand the level of effectiveness of 360º appraisal in the industry
3.1 NEED AND IMPORTANCE OF THE STUDY
This study is conducted with respect to understanding the different appraisal systems conducted in the software industry and their effects thereafter in the same. Due to time and resource constraints, the study was restricted to the software industry in Delhi Region .
3.2 OBJECTIVES OF THE RESEARCH
1. To find out the different appraisal systems followed by software companies. 2. To find out who appraises the employees.
3. To analyze and study the benefits of the appraisal systems. 4. To analyze the shortcomings of the appraisal systems.
5. To identify the criteria and measures adopted to evaluate employee performance. 6. To find out the level of effectiveness of the 360 degree feedbacks.
3.3 REVIEW OF LITERATURE
The literature review section examines the importance of search studies, company data or industry reports that serve as a foundation for the setup of study. The research dimension of the related literature and the relevant information begins from an explanatory perspective, approaching towards specific studies which do related to the judge the limitations and informational gaps in data from the secondary sources.
This analysis may reveal conclusions from past studies to realize the reliability of the secondary sources and their credibility. This in turn enables one to rely on a comprehensive review for the study.
ANALYSIS OF PREVIOUS STUDY
A survey about current practice, which is followed in companies to appraise performance: ( Phatak, International Dimensions of Management)
Almost all software companies responding do have formal appraisal programs. About 93% of smaller organizations (those with fewer than 500 employees) have such programs. About 97% of large organizations have them.
Rating scales are by far the most widely used appraisal technique. About 62% of small organization use rating scales, 20% use essays, and about 19% use MBO. Among the large organizations, 51% use rating scales, just over 23% use essays and about 17% use MBO.
However, those using ratings as the main appraisal technique typically also require narrative comments to justify rating and to describe employee strengths and weakness and document development plans. Those using essays as the main appraisal technique usually require an overall quantitative performance rating to facilitate employee comparisons for compensation decisions. The employee’s immediate supervisor makes Ninety two percent of appraisals. These appraisals are in turn reviewed by the appraiser’s supervisor in 74% of the responding organizations. Only about 7% of the organizations use self-appraisal in any part of the overall appraisal process. Virtually all employees (99%) are informed of the results of their appraisals. Overall about 77% are given a chance to respond with written comments on their appraisals. In 69% of companies, appraisals are done annually.
The review of literature does scrutinize the important research studies. The primary sources that provide relevant information are the best form to retrieve data from the research. The primary sources were encouraged with the help of distribution of questioners as well as conducting personal interviews. With this the data received enables the researcher to accurately arrive at the problem of the study and the consecutively solutions to the same. The secondary sources were also relied on for additional information. It includes company journal, newsletters, records, manuals etc.
CONCLUSION
Performance management lays an evaluative and developmental dimension to its makeup, and is crucial in both linking rewards to performance and providing a platform for the development of employees. Over concentration on the assessment of performance can work to the detriment of effort aimed at establishing the development needs of the individual in an open and honest way. The manager, as an appraiser, may encounter difficulties in reconciling the roles of 'judge' and 'mentor'. Managers need to develop the skills of coping with such tensions in their roles. In some organizations, this problem is solved by having different managers carrying out performance and development appraisals. Appraisal provides the context in which mangers can seek to ensure that there is acceptable congruency between the objectives of the individual and those of the organization.
4. RESEARCH METHODOLOGY
TYPE OF RESEARCH
The research design comprise of the plan and structure of investigation conceived so as to arrive at the responses to the research queries. It there by addresses the aims and objectives of the study, both descriptively and analytically.
SAMPLING TECHNIQUE
The sampling technique adopted for the study is non-probability Random sampling technique according to the convenience of the researcher.
A questionnaire was administered to HR managers / executives of different software companies to obtain data for the purpose of analysis.
SAMPLE SIZE
Data is collected using a sample of 30 software companies.
The sample mainly consists of data from the primary sources that are utilized for the purpose of this study. This is done by means of administrating questioners to human resource managers / executives in different software companies in the city of Bangalore. Secondary data like company journals, newsletters, records etc. were also relied on for retrieving further information.
INSTRUMENTATION TECHNIQUE
Questionnaire and structure disguised questions.
ACTUAL COLLECTION OF DATA
Both secondary and primary sources of data are utilized for the purpose of this study. Primary data is collected by means of administering a questionnaire to the Human Resource Managers / Executives in different software companies. Secondary data is collected from various records, manuals and other sources of the HR Department.
TOOLS USED FOR TESTING OF HYPOTHESIS
In attempting to arrive at a decision about the population on the basis of the sample information it is necessary to make assumptions or guesses about the population parameters involved such an assumption is called statistical hypothesis, which may or may not be true or not is called test of hypothesis or test of significance. In the test of hypothesis it begins with an assumption or hypothesis is called Null Hypothesis.
The null hypothesis asserts that there are no significant differences between the statistics and the population parameters and whatever observes difference is there merely due to fluctuations in sampling from the sample population. Null hypothesis is usually denoted by the symbol, Ho. Any hypothesis that contradicts the Ho (null hypothesis) is called an alternative hypothesis and is denoted by symbol H1. The technique used to test the hypothesis is Test for proportion.
p-P PQ n
Suppose the population of an attribute in a population is now known, we want to test whether the proportion is a given value P. The null hypothesis is Ho : p = P. The alternative hypothesis is H1: p P.
The large random sample of size n from the population, let x units possess the attribute. Then the sample proportion is p = x/n.
And so, Z =
Therefore, the test statistics is | Z | = P = assumed level of effectiveness Q = 1-P
p = level of effectiveness of sample n = sample size
For the sample, if | Z | cal > k, Ho is rejected .On the other hand, if | Z | cal < Ho is accepted.
OTHER SOFTWARE USED FOR THE DATA ANALYSIS
For the data analysis, and the subsequent interpretation the researcher has adopted advanced version of MS-EXCEL 2000. This application software has facilitated the researcher to construct the frequency table, various kinds of graphs and to find out the average responses from the sample. By this automated data analysis it has minimized the researcher’s time constraint and reduced human errors and also accurate outlay of information.
5. QUESTIONNAIRE
There were two questionnaire were designed. First has been designed to assess the job satisfaction level and morale of the employees in the organization. Second was designed for the HR of the specific software companies.
HOW YOU FEEL ABOUT YOUR JOB?
The questionnaire consists of nine sections, each section having a number of statements. Please answer all the statements. You are requested to be honest and frank in your replies. You are not required to write your name. The answers given by you will be kept confidential.
Please assess the extent to which each statement describes you and your organization using the following five point rating scale; encircle the most appropriate rating.
1. Strongly Disagree (SD) 2. Disagree (D)
3. Indifferent (I) 4. Agree (A)
5. Strongly Agree (SA)
SECTION I (Personal Details):
1. Age : ______________________________________ 2. Experience in the present organization: ___________
SECTION II (Job Itself): S.NO
:
SD D I A SA
A. TASK SIGNIFICANCE
3. My performance on the task determines or influences performance of my colleagues also.
1 2 3 4 5
4. I feel that the task(s) I perform need independent charge
and cannot be clubbed with some other responsibility. 1 2 3 4 5
C. SKILL VARIETY
5. The organization believes in multi-skilling. 1 2 3 4 5 6. I am given an opportunity to develop my skills further to do
my job in the organization.
1 2 3 4 5
D. AUTONOMY
7. I am given independence in important decision-making. 1 2 3 4 5 8. There is flexibility and freedom in the job that I do. 1 2 3 4 5
E. INTEREST IN WORK
9. My job is usually interesting enough to keep me from being bored.
1 2 3 4 5
10. Most days I am enthusiastic about my work. 1 2 3 4 5
SECTION III (Job Advancement/ Scope For Advancement):
S.NO SD D I A SA
GROWTH PROSPECTS / PROMOTIONS
11. I feel I can personally develop or grow in my job. 1 2 3 4 5
12. Promotions decisions are taken objectively. 1 2 3 4 5 13. The company has satisfactory promotion policy. 1 2 3 4 5 14. Good performance is also considered in promotion decisions. 1 2 3 4 5
SECTION IV (Management Responsiveness): S.NO
:
SD D I A SA
A. RECOGNITION AND APPRECIATION
16. I will be recognized and appreciated when I will go beyond what is expected in my job.
1 2 3 4 5
B. FEEDBACK
17. My supervisor(s) constantly provide me feedback, which enable me to improve my performance.
1 2 3 4 5
C. MONETARY BENEITS (Pay, Perk, Benefits, Compensation)
18. There is a significant component in my compensation package that is performance linked.
1 2 3 4 5
19. All incentive schemes are transparent. Linkages of incentives with performance are clear.
1 2 3 4 5
20. Compared with people in similar jobs in other companies, I feel my pay is fair.
1 2 3 4 5
21. I personally feel that monetary rewards alone are not sufficient to motivate me to work better.
1 2 3 4 5
D. SECURITY
22. In my understanding, there is no threat to my job due to redundancy or any other reason.
1 2 3 4 5
E. PARTICIPATION / PARTICIPATIVE MANAGEMENT
23. My superiors involves me in the decision making process. 1 2 3 4 5 24. I can express frankly my feelings and reactions in the
meetings and to my senior managers.
1 2 3 4 5
25. I personally feel that my subordinates have to be given very clear directions to execute their work.
1 2 3 4 5
F. GRIEVANCE HANDLING
26. There is a fairly clear-cut and detailed grievance handling mechanism in place in my organization.
1 2 3 4 5
G. TRAINING AND LEARNING
27 My company sends people for training when they need to learn new things related to their job profile.
1 2 3 4 5
28. It is my company’s express policy to proactively train people from a long term H.R development perspective.
H. COMMUNICATION SYSTEM
29. I am kept informed on what goes on here. 1 2 3 4 5 30. I am satisfied with the communication and the way
information flows around in my organization.
1 2 3 4 5
I. REWARD
31. Mainly excellence in performance and getting tasks accomplished is rewarded.
1 2 3 4 5
32. Knowledge and expertise are recognized and rewarded here. 1 2 3 4 5
SECTION V (Working Groups & Culture):
Factors included in this are:
1. Supervision (Quality of supervision, support from supervisors, supervisory treatment, competency of the supervisor)
2. Relationship with co-workers 3. Support from co-workers 4. Cohesiveness
5. Teamwork 6. Culture
S.NO SD D I A SA
A. SUPERVISION
33. My superior / boss gives me enough freedom to do things in my own way.
1 2 3 4 5
34. My boss provides me enough guidance about how I should perform my job well.
1 2 3 4 5
35. Supervisors try to use their expertise and competence rather than their formal authority in influencing their subordinates.
1 2 3 4 5
B. WORKING GROUPS
36. I feel that ‘we’ work as a team of mutually complementing individuals in our section / department.
1 2 3 4 5
37. My company provides enough conducive environment – formally and informally – to work in teams.
38. People get along well with each other in my section. 1 2 3 4 5 39. The people I work with are very friendly and supportive of
one another.
1 2 3 4 5
SECTION VI (Status / Occupational Status): S.NO
:
SD D I A SA
40. I don’t care about rank and job titles; its what I am doing is important.
1 2 3 4 5
41. I think my position should be reflected through various status symbols, etc.
1 2 3 4 5
42. My organization ensures that hierarchical differences are clearly discernible.
1 2 3 4 5
SECTION VII (Working Environment): Factors included in this are:
1. Conditions of work, physical environment 2. Working hours
3. Fatigue and monotony 4. Provision of food 5. Transportation
S.NO SD D I A SA
43. I have convenient working hours. 1 2 3 4 5 44. I feel exhausted by the time I am through with my day’s
work.
1 2 3 4 5
45. In a typical day’s work :
We get good lunch and other snacking items. 1 2 3 4 5 46. Transportation to my workplace and back is comfortable
experience :
SECTION VIII (Social Relations): Factors included in this are:
1. Participation in social activities 2. Friends and associates.
S.NO :
SD D I A SA
47. My interaction with colleagues extends beyond office hours. 1 2 3 4 5 48. Our company organizes lot of events like sports meet,
recreational activities, family outings etc.
1 2 3 4 5
SECTION IX (Organizational Commitment): S.NO
:
SD D I A SA
49. I think I can proudly tell the name of the organization I work for.
1 2 3 4 5
50. Even if the company would reduce my salary because of financial problems, I would be reluctant to change to another company.
1 2 3 4 5
QUESTIONNAIRE FOR HR
Name of the Organization:Designation:
Total No. Of employees in the Organization
1. Do you appraise an employee by an appraisal system?
Yes No
2. If yes, what is the system of appraisal adopted by your company?
3. How often are appraisals carried out in your organization?
Quarterly Half Yearly
4. What are the criteria used in your company to evaluate an employee? Performance Customer Focus Technical Competence Attendance Target Vs. Achievement Key Result Areas Quality of Output 3 Point Scale 5. What is the rating system used in your company?
Scoring Comments
Both If scoring is it
Alpha Numeric
Both
6. Do you obtain feedback on the person being appraised?
Yes No
7. How is feedback given to the employees?
Written Oral
Detailed Summarized
Self-Assessed Manager Assessed
8. Do you share both positive and negative feedback with appraise in the same meeting?
Yes No
9. Do you follow a self-assessment of an employee?
Yes No
a) If yes, is it integrated into the appraisal system you follow?
Yes No
10. Is compensation increase related to an appraisal in any way?
Yes No
11. Does the appraiser set targets for an employee being appraised?
If yes, for what period?
3 Months 3-6 Months
6 Months 12 Months
12. Do you have a checklist for carrying out appraisals?
Yes No
13. Do you follow career planning?
Yes No
14. What would be the level of effectiveness of 360 score when implemented as a form of appraisal? Less than 20% 20% - 35%
35% - 50% above 50%
6. CHAPTERISATION SCHEME
The project would deliver the following topics: Introduction Research design Company profile
Approaches of performance appraisal Findings, suggestions and conclusions Bibliography and Annexure
6.1. Introduction
This chapter would provide a short introduction of what is Performance Appraisal and the Background of the research and what would be divided on 3 basic chapters as mentioned below.
6.1.1 Background of the Study
This chapter would be designed in such a way to provide an overall scenario of the IT world and the lateral shift of the Methods used and result observed. Almost all software companies responding do have formal appraisal programs. About 93% of smaller organizations (those with fewer than 500 employees) have such programs. About 97% of large organizations have them.
6.1.2 Introduction to the IT System?
This chapter will have an elaborate description of Information Technology and ERP systems. ERP which is one of the latest developments in software for business enterprise wide Resources Planning (ERP) System is an integrated business management system
6.2. Research Design
The research intends to study the different approaches of appraisals adopted by software Companies.
6.2.1 Statement of the problem
It also analyses the most commonly occurring errors within performance appraisal methods and to understand the level of effectiveness of 360º appraisal in the industry
6.2.2 Need and importance of the study
This study is conducted with respect to understanding the different appraisal systems conducted in the software industry and their effects thereafter in the same
6.2.3 Objectives of the study
To find out the different appraisal systems followed by software companies
6.2.4 Review of literature
The literature review section examines the importance of search studies, company data or industry reports that serve as a foundation for the setup of study.
6.2.5 Operational definitions of concepts
A more comprehensive definition is, “Performance appraisal is a formal structured system of measuring and evaluating an employee's job and how the employee can perform effectively in future so that the employee, organization all be benefited."
6.2.6 Research Methodology 6.3. Company profile
6.3.1. Indian IT industry
The Indian IT-ITES industry is broadly categorized into IT services and software, ITES-BPO and Hardware segments. The industry continues to chart remarkable double-digit growth, with industry aggregate revenue for 2005-06 expected to reach US$ 28 billion. The industry is forecast to grow more than fivefold over FY 1999-06, at a CAGR of 28 percent.
6.3.2. Industry Trends.
6.4. APPROACHES OF PERFORMANCE APPRAISAL
Analysis of data was done with the purpose of summarizing the collected data and organizing these in such a manner that they answer the research questions. Percentage analysis was used for analysis
of data and the results have been presented by way of pie charts, bar charts, with the help of SPSS package
6.5. Conclusion
At the end of the project report we can mention why an organization would and should use an Effective Performance Appraisals techniques and its key benefits.
6.6. Bibliography & Annexure 6.6.1 List of Tables
6.6.2 List of figures 6.6.3 Questionnaire
7. PERFORMA FOR SYNOPSIS OF PROJECT WORK
PROFORMA FOR SYNOPSIS OF PROJECT WORK
Name: Amit Kursija Enrol. No.: 52102420
Address for Correspondence :
BA/ 45 - B Phase 1 Ashok Vihar Delhi 110052
Mobile No: +91-9873253288
Major area of specialization in which project work is to be undertaken: Human Resources
Questionnaire attached: Yes
Resume of Project Guide attached: Yes
Consent letter of Project Guide: Yes
Phone No. of Project Guide: 9990688283
8. Guides Resume
As per the guidelines please find below the resume of Mr. Rajiv Malhotra who has guided and helped me design the below project. He also assisted me run this project within our organization and assisted to go get the data from the other software companies in delhi and NCR region, without his approval and help this would not have been possible.
Objective
To specialize in organization level Human Resource Planning and Development. To keep developing HR skills and be a part of a dynamic team and help the organization grow, by suggesting and implementing innovative HR policies and initiatives.
Academic profile
Master of Personnel Management & Industrial Relations (MPM&IR), 2 Years Full Time
Post Graduate Course from Jiwaji University, Gwalior (1999)
Higher Diploma in Software Engineering (HDSE) from Aptech. (MS -DOS, Windows
95/98/NT, MS- Office, C, C++, Oracle, D2k, Networking, SSAD, Internet Browsers) (1999) B.Com from Jiwaji University, Gwalior (1997)
Pursuing Diploma in Training & Development from ISTD, Delhi (Final Semester)
Work Experience
S.NO ORGANISATION DESIGNATION DURATION
1. Intersoft Data Labs Pvt. Ltd Manager-HR Aug 2006 – Till Date 2. Fidelity National Information Services
(Earlier know as Second Foundation India Pvt Ltd)
Assistant Manager-HR Aug 2005– Aug 2006 3. National Dairy Development Board
(NDDB) Deputy Manager-HR Aug 2004– Aug 2005
4. Deus Technology Senior Executive-HR Recruiter
Nov 2002– July 2004 Oct 1999 – Nov 2002 August 2006 to Till Date : Intersoft Data Labs Pvt. Ltd., Gurgaon
Manager-HR
Handling a team of seven HR professionals and overseeing all HR activities of the organization including recruitment, people practices, employee satisfaction, performance management, organizational development, audits (BS7799, ISO27001, CMMi) and compensation management etc.
Key Responsibilities
HR Strategy and processes
o Contributing to HR strategy and ensuring that action plans are created and implemented to implement the strategy.
o Identifying Key Result Areas for the processes annually with respect to business Operations with inputs from the business heads and monitoring the implementation of these.
o Designing of role competency matrix for each role in the organization.
o Documentation and release of the Human Resources Manual for the organization. o Designed Developed and implemented People Management policies and processes after benchmarking with the best in the industry and as per company requirements.
Define and implement strategies for recruitment & resource management o Define and implement strategies for recruitment & resource management. o Define manpower recruitment plan.
o Define processes and policies for selection, outsourcing and induction. o Interview and shortlist candidates for interviews with line managers. o Manage Campus and Off Campus hire.
o Conceptualize and define systems & tools to support Resource Management. o Allocate resources to projects based on projections.
o Developing, Monitoring and Maintaining of database on the basis for immediate future manpower requirements. Prepare / Update Monthly Manpower Report.
Employee Management & Organizational Development
o Facilitation of OD Initiatives like compensation benchmarking, open house, E-Sat etc. o Conducting Exit interview and preparing Attrition Analysis as part of retention strategy.
o Actively participated in Implementation of Quality System for successful certification of BS7799, ISO: 27001 & CMMi.
o Ensuring effective HR Services deployment, Process compliance & Service delivery as per SLA. o Sharing information with the employees in different forums.
o Taking care of entire employee engagement/retention/welfare.
o Employee Satisfaction Index on a quarterly bases to ensure a transparent culture and healthy environment. Ensuring fulfillment to Internal Customer’s expectations on time. Counseling
employees, from time to time on behavioral attributes, defusing conflicts, building a congenial and performance friendly work atmosphere.
o Anchoring the employee help-desk. Addressing employee issues and concerns.
o Organizing togethers (Monthly / Annual) like Fun Friday; Employee Day; Family Get-togethers; Monthly sports competitions.
o Corporate Social Responsibility - Blood Donation camps, Computer literacy camps, Philanthropy, o Visits to various NGO.
Training and Skill Development
o Prepare/Maintain Annual Training Calendar, Training Attendance, Feedback Records, Measuring Training Effectiveness and Training Analysis.
o Plan for and schedule the induction events in anticipation of the dates of joining of Individuals. Ensure completion of joining formalities in terms of process steps and documentation. o Skill Inventory Application Maintenance.
Performance Management
o Ensuring a fair and transparent process of appraisal through feedback sessions with employees and Human resource presence (where necessary).
o Managing the overall Appraisal process – Policy Formulation & Clarification, communication / rollouts, coaching employees / managers in writing effective appraisals, Data Validation, Goal Setting, Self Appraisal, Appraiser evaluation, Reviewer evaluation, identifying development plans for employees conducting ensuring the appraisal process is closed with the time line. o Performance Normalization meetings, Post-Appraisal data mapping, analysis and finalization of
rewards.
August 2005 to August 2006 : Fidelity National Information Services (Earlier know as Second Foundation India Private Limited), Chandigarh Assistant Manager-HR
Company Profile
Fidelity National Information Services (Earlier know as Second Foundation India Private
Limited), a leading provider of global software services, specializes in Business Intelligence, Software Security and Web Services solutions. It houses more than 650 employees.
Job Responsibilities
Policies & Procedures
o Drive the design and implementation of HR strategies in a high growth environment and also formulate comprehensive HR policies.
o Designed Developed and implemented People Management policies and processes after benchmarking with the best in the industry and as per company requirements.
o Documentation of policies & processes necessary for smooth implementation of policies. Regular review of policies & process improvements.
Capacity Planning and Recruitment
o Preparing and monitoring recruitment plan
o Ensuring acquisition of the best talent through a process of recruitment tests and interviews. o Plan for Campus and Off Campus hire and its implementation.
o Sourcing talent and their Reference Check; Background and employment verification. Performance Management
o Assisted in review and implementation of effective performance appraisal uniformly all across the organization.
o Defining various roles within the organization as well as skill required at each level. (Job and Role Descriptions). Defining the organization structure and career progression path.
o Manage Goal Setting Exercise. OD Initiatives
o Facilitating healthy organizational culture by promoting open house discussions, suggestion schemes, E-Sat (ESS), Intranet etc.
o Employee Engagement activities like Open House, Monthly Events, Employee Events, Celebrations, Yoga Classes, Grievance Handling etc
o Manage exit formalities. Conduct exit interviews, analysis and finalize F&F settlement. Actively participated in Implementation of Quality System for successful certification of ISO: 9001:2000.
Trainings
o Organizing training programmes for existing employees and freshers hired through campus & off-campus.
o Organising Induction trainings for new hires.
o Identification of behavioral and technical training needs.
o Generating feedback from the trainees with regard to the benefits drawn from the training. Compensation Management
o To gather and update information about the compensation/salary, employee welfare and incentive schemes with respect to competitor’s vis-à-vis market intelligence.
o Improve communication of policies and benefits through Benefits campaigns; Policy clarification sessions for the HR and Resourcing team; Timely response to queries on policies and benefits.
o Conduct Salary benchmarking exercises.
o Active interaction with Resourcing team for taking inputs on market trends and equip them with recruitment guidelines.
Compliance
o Shops and Establishment o PF Compliance
o Payroll
o Contractual staff
August 2004 to August 2005 : National Dairy Development Board (NDDB), Anand (Gujarat)
Deputy Manager-HR Company Profile
The NDDB is a Public Financial Institute and was created to promote, finance and support producer-owned and controlled organizations. Fundamental to NDDB's efforts are cooperative principles and the Anand Pattern of Cooperation. It houses more than 1500 employees.
Job Responsibilities
Human Resource Information System (HRIS)- ERP Implementation
o Undertake necessary actions for implementation of HRIS (ERP-Orion) module. o Provide support/inputs in context of problems arising during implementation.
o Continually monitor HR/Client information needs and design new/modify existing system to meet changing requirements.
o Provide accurate, timely responses to information requests from operating groups, Support
Group and others as appropriate.
o Design, generates and distributes a variety of reports and statistical summaries. Prepare and submit periodic, recurring activity & status reports to superiors
Training & Development
o Devising an Induction Intersoft Data Labs Pvt. Ltd, Compensation, etc.
o Organizing training programmes for Officers & Staff, Identification of training needs, Generating feedback from the trainees with regard to the benefits drawn from the training. Performance Management
o Process the Appraisals of the employees, Initiation appraisal forms and follow-up for timely receipt of the same.
o Assisted in Six Monthly & Annual Performance Feedback. Operations
o Responsible for personnel functions like joining, LTA, Separation, Full & Final Settlement, etc, Formulation of Organization Structure.
o Employee grievance handling. Issuance of Various Certificates i.e. NOC for Passport, NOC for Visa, Verification, Residence Proof, Service Certificates etc.
o Periodic Voluntary Medical Check-up (PVMC), Permission for Higher Studies, Training/Visits Abroad. Proposals to MD for approval for various other purposes.
o Implementing formal system of Internal Communication- Interaction meeting with Unions, Other participative Forums.
o Welfare activities for employees and their family members.
o Liaisoning with All Department Heads regarding HR related matters.
Oct 1999 to July 2004 : Deus Technology, Delhi
Senior Executive HR (Nov 2002 to July 2004) Recruiter (Oct 1999 to Nov 2002)
Job Responsibilities
Recruitment & Selection
o Organizing the entire recruitment process.
o Sourcing–Advertising, Job portals, Consultants, Referrals, Head hunting, cold calling, Internet researching Getting References etc.
o Maintaining targets & quality.
o Initial screening, Scheduling & Coordinating for further Interviews.
o Responsible for recruitments at all levels and spheres (National/Overseas) o Offer Negotiations & Follow up, Reference Checking.
o Induction, Verify credentials if required through verification process, Statutory compliance, Confirmations, Probation reports, Confirm / Extension / Termination.
Performance Appraisal
o To organize Appraisals as per the policy and to Ensure Appraisals are done and are in order. o Performance evaluation and compilation and finalization of rewards.
o Issue promotion / increment letter as applicable. Payroll Management
o Responsible for preparing Salary statement every month with all necessary deduction and timely o disbursement.
o Providing salary statement and monthly report to accounts department on a monthly basis. Operations
o Attendance & Leave Management, Full & Final preparation, Exit Interviews, Employees Communication, Employees Database Management etc.
o Introduced Suggestion Box and Movement Register in the organization.
o Drafting of Offer Letters, Appointment Letters, and Experience Letter, Relieving Letter, Increment Letter, and Salary Certificate etc.
o Issue of Warning Letters, Maintaining Discipline Maintenance of harmonious Relation. o Design and regularly updating the HR manual.
o Organizing employees get-togethers and parties to celebrate the special occasions. o Induction Trainings, Training to Resource Executives.
o Ensure compliances w.r.t. PF, Gratuity, Shops & Establishment Act, etc.
o General administration activities-Telephone/Fax, Library Management, Hotel & Travel Arrangement, etc.
Professional Memberships Details
o Individual Life Member of National HRD Network (NHRDN), Delhi Chapter.
o Student Member of Indian Society for Training & Development (ISTD), Delhi Chapter.
Organisation Training Details
Training/Membership Organisation Duration Date
Training on Metrics Intersoft Data Labs Pvt. Ltd. Half Day May 28, 2007 Introduction to CMMi Intersoft Data Labs Pvt. Ltd. 1 Day Apr 12, 2007 Business Communication FIS (Second Foundation) 2 Days May 12-13, 2006
Stress Management NDDB 1 Day Jan 2005
Training On ESI, PF, Bonus,
Gratuity ATC Infotech (P) Ltd 1 Month April-May 2000 Personnel Functions (OJT) Flex Industries Ltd 3 Months 1999
Grievance Handling (ST) HTC Ltd 2 Months 1998
Personal Details
Date Of Birth
Permanent Contact Address Phone
Passport No
17th Jan, 1977
‘Bhardwaj Sadan’, City Centre, Opposite BSNL Building, Tulsi Vihar, Gwalior (M.P)-474011.
0751-223876 A8539380 Driving License No. Y-1964/20
1.1 Background of the Study
Information technology (IT) revolutionized many aspects of a business. There is hardly any organization which has not installed at least one ubiquitous computer. There is a wide choice for computer users - from a simple PC to sophisticated network of computers. Applications of computers in various function is common these days; from mere data storage to more advanced software packages like ERP which can do many things in an organization but fortunately, cannot substitute common sense or human ingenuity.
It is well to remember that IT is one more tool in hands of a management to get things better and faster.
Example of IT application, ERP which is one of the latest developments in software for business enterprise wide Resources Planning (ERP) System is an integrated business management system which covers some important aspects of business such as logistics, production, finance, accounts, human resources, planning, materials and warehouse management. Right from the receipt of an inventory, an ERP system tracks materials, capacity and labor resources. Thus an ERP system package claims to aid a business to manage it activates dynamic and integrated manner.
But it is equally important to understand and appreciate the flip side of such sophisticated IT packages like ERP. First of all the people ho handle such a package must be qualified and must posses relevant work experience in the functional module, which a person wants to get trained.
An organization, which wishes to work with ERP, must have already had experience with proper working IT infrastructure. There should be enough number of terminals for concerned people to key in data or run a query.
One of the toughest things to overcome is the attitude of the people for adapting to a change. Thus ushering in a new "IT culture" remains one of the greatest challenges for any management interested in adapting IT as a tool in as many functions of the organization as possible.
The vital role of IT is to support a management and not control it. Thus the IT most understands their role vis-à-vis decision-making. Just because a sophisticated IT package has been installed in an organization cannot guarantee success .If for example, a vendor is supplying poor quality supplies consistently, the information system will tell the management of such a fact faster. But now it is up to the management to initiate corrective measures- visit vendor to assist him to come up to standard, develop alternate vendor or import.
Some cautious management would like to implement information system module by module to gain experience. Such a procedure may or may not guarantee success. Some IT experts urge an organization to implement a total IT system such as ERP-a classic case of all or bust.
In the enthusiasm to appear very modern and up-to date a management may go in for IT package when the ground reality within the organization is not conductive to such a drastic change. On the other hand a few well-tried techniques do wonders for an organization. For example, an organization's urgent need may be to change existing technology to an upgraded one. An ERP package obviously, won't tell the management to do just that. Also, a few time -honored principles like "do it right at the first time" must be followed in an organization with or without a sophisticated IT tools.
A responsible management will put the IT in its place to serve the overall business interests.
The research intends to study the different approaches of appraisals adopted by software Companies. It also analyses the most commonly occurring errors within performance appraisal methods and to understand the level of effectiveness of 360º appraisal in the industry
2.2
Need and Importance of the Study
This study is conducted with respect to understanding the different appraisal systems conducted in the software industry and their effects thereafter in the same. Due to time and resource constraints, the study was restricted to the software industry in Bangalore City.
2.3
Objectives of the Research
1. To find out the different appraisal systems followed by software companies. 2. To find out who appraises the employees.
3. To analyze and study the benefits of the appraisal systems. 4. To analyze the shortcomings of the appraisal systems.
5. To identify the criteria and measures adopted to evaluate employee performance. 6. To find out the level of effectiveness of the 360 degree feedbacks.
2.4 Review Of Literature
Purpose
The literature review section examines the importance of search studies, company data or industry reports that serve as a foundation for the setup of study. The research dimension of the related literature and the relevant information begins from an explanatory perspective, approaching towards specific studies which do related to the judge the limitations and informational gaps in data from the secondary sources.
This analysis may reveal conclusions from past studies to realize the reliability of the secondary sources and their credibility. This in turn enables one to rely on a comprehensive review for the study.
Analysis of previous study
A survey about current practice, which is followed in companies to appraise performance: ( Phatak, International Dimensions of Management)
Almost all software companies responding do have formal appraisal programs. About 93% of smaller organizations (those with fewer than 500 employees) have such programs. About 97% of large organizations have them.
Rating scales are by far the most widely used appraisal technique. About
62% of small organization use rating scales, 20% use essays, and about 19%
use MBO. Among the large organizations, 51% use rating scales, just over
23% use essays and about 17% use MBO.
However, those using ratings as the main appraisal technique typically also require narrative comments to justify rating and to describe employee strengths and weakness and document development plans. Those using essays as the main appraisal
technique usually require an overall quantitative performance rating to facilitate employee comparisons for compensation decisions.
The employee’s immediate supervisor makes Ninety two percent of appraisals. These appraisals are in turn reviewed by the appraiser’s supervisor in 74% of the responding organizations.Only about 7% of the organizations use self-appraisal in any part of the overall appraisal process.Virtually all employees (99%) are informed of the results of their appraisals. Overall about 77% are given a chance to respond with written comments on their appraisals. In 69% of companies, appraisals are done annually.
Methods of reviewing the literature
The review of literature does scrutinize the important research studies. The primary sources that provide relevant information are the best form to retrieve data from the research. The primary sources were encouraged with the help of distribution of questioners as well as conducting personal interviews. With this the data received enables the researcher to accurately arrive at the problem of the study and the consecutively solutions to the same. The secondary sources were also relied on for additional information. It includes company journal, newsletters, records, manuals etc.
Conclusion
Performance management lays an evaluative and developmental dimension to its makeup, and is crucial in both linking rewards to performance and providing a platform for the development of employees. Over concentration on the assessment of performance can work to the detriment of effort aimed at establishing the development needs of the individual in an open and honest way. The manager, as an appraiser, may encounter difficulties in reconciling the roles of 'judge' and 'mentor'. Managers need to develop the skills of coping with such tensions in their roles. In some organizations, this problem is solved by having different managers carrying out performance and development appraisals. Appraisal provides the context in which mangers can seek to ensure that there is acceptable congruency between the objectives of the individual and those of the organization.
Although one recognizes the part played by performance management in the determination of rewards, we believe that if treated as a way of providing feedback on progress and of jointly agreeing the next set of aims, the appraisal can have a positive effect on individual motivation.
2.5 Operational Definition of Concepts
Performance Appraisal
Performance appraisal is the assessment of an individual's performance in an performance in a systematic way, the performance being measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility etc. assessment should not be confined to the past performance alone. Potentials of the employee for the future performance must also be assessed.
Performance appraisal can be defined as "the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development".
A more comprehensive definition is, “Performance appraisal is a formal structured system of measuring and evaluating an employee's job and how the employee can perform effectively in future so that the employee, organization all be benefited."
Performance appraisal, to common understanding, is the formal and informal
assessment of the performance of the employee at work. In an informal system we are aware that superior is continually making judgments about their subordinates' performance on a subjective basis. By contrast, superiors could resort to using formalized appraisal techniques when assessing the performance of subordinate, and these judgments arc considered to be more objective. In formalized systems the terms 'performance appraisal and 'performance management' are used. Both refer to a process where by mangers and their subordinates share understanding about what has to be accomplished, and the manager will naturally be
concerned about how best bring about those accomplishments by adept management and development of people in short and long terms. Also, performance would be measured using
the techniques discussed in this chapter and it will be subsequently related to targets or plans. In this way the subordinate receives feedback on his or her progress.
A distinguished feature of performance management is its integrating strength in aligning various processes with corporate objectives: for example, the introduction of performance-related payment system and mobilization for training and development resources to achieve corporate objectives.
Measuring Performance
In many organizations, the feedback on job performance is ambiguous or is given annually as a ritualistic exercise. Many subordinates therefore have trouble in gasping how their efforts are perceived by the organization. Almost every one who has worked at a job can remember times when they were unclear on how their performance was being judged.
The annual performance appraisal system tends to serve only a little purpose: salary administration, training and succession planning. But this is not the sole objective of performance appraisal. These objectives will only dilute and weaken the clarity and validity of any appraisal system. Most organization ties the formal appraisal system directly to salary increase, which decrease their validity.
It is therefore very important for organizations to:
(a) Link Salary and Status Realistically to the Performance Appraisals
Most personnel departments have a very narrow outlook to appraisals. The general view is to receive the appraisal forms at a date (which usually is the deadline), issue instructions regarding increments and promotions, receive the data regarding the same and they issue letters to the concerned employee informing of their salary increase. The appraisal process gets polluted as the appraiser and appraise have at the back of their minds promotion and salary increase, rather than performance plans and participative reviews. This dilutes the objectives of appraisal to great extent. In fact, if organizations create, a culture of continuous feedback on the performance they would be making the appraisal system more relevant. Several organizations have already started delinking performance appraisal from salary increase.
(b) Making Objectives of Performance Appraisals Clear to All Employees
If performance appraisal should not directly be linked to salary increase the question then arises, what should the objectives of performance appraisals be that could be realistically achieved?
Some suggestions:
To do joint goal setting, and link the goals to the organizational objectives To provide role clarity by defining Key Result areas for Accounting.
To establish a level of performance in the current job and seek ways of improving it.
To identify potential for development and to support the total process of planning To increase communication between the appraiser and the appraise.
To identify factors that facilitate performance and other factors that hinder performance.
To help the employees identify and recognize their own strengths and weaknesses. To make them assess their own competencies and how the same can be multiplied and improved.
To generate data about the employee for various decisions like transfers, rewards, job-rotation, etc.
(c) Focus on Developmental Appraisals
Managers should develop part ownership in the employee's future. Any good appraisal system should focus on developmental appraisal. Developmental appraisal mean that an organization needs to develop not just isolated performance appraisal tool/system, but the total frame work for the individuals development, improvement in job and level of competence and preparing employees for future jobs. Thus, appraisal of people, which is a part of the total HRD system, lies to be linked to long-term development activity and carrier planning.
Organizations have to show vision for the future. Vision, strategies and objectives will give rise to individual objectives and performance standards. The immediate rewards and recognition do not lead to enduring performance and upgrading of competence and therefore are not real motivators. The appraisal as a tool not only gives the individual and the organization the idea of where the individual stands in terms of his skills, competencies and abilities, but also monitors the process of growth and development, together with the inputs that are required to develop a high level of competence by individuals.
(d) Let Employees Appraise Their Own Performance
Subordinates need feedback more often on their performance. The best way to do it is to let them appraise their own performance.
Selfappraisal would
-1) Motivate the employee to take more responsibility for his/her own performance. 2) Focus on the job behavior only.
3) Reduce ambiguity in performance and focus on change in job behavior.
When subordinates undertake self-appraisal, they analyze their job duties and how key issues in a job they handle. Each individual may rate himself or herself.
Self-appraisal may focus on cost control, communication, planning, training, delegation and decision-making. After self-appraisal, the subordinate discusses the ratings with his/her direct report or superior to get a feed back on performance. Both then come to an agreement in areas of convergence and draw a job improvement plan.
(e) Create a Climate for Open Appraisals in Organizations
In most organizations, the concept of open appraisal is misunderstood. Open appraisal does nut mean that the appraisal ratings are shown by the subordinate, and his/her signature is then obtained. What it does mean that both the appraiser and the appraise share their views on performance with each other, identify the areas of improvement and work towards it. One of the objectives of open communication between the appraiser and the appraise is to bring them together to solve organizational problems and performance related problems. The quality of ratings is likely to improve if there is shared understanding between the appraiser and the appraise.
(f) Muscle Builds the Organization
In today's competitive world, raising performance goals is essential. This entails analyzing the company's current situation, projecting the future, establishing higher expectations, and selling the top management on the upgrading process and developing an action plan.
Muscle builds the organization by
1) Enhancing your own performance
2) Accelerating the professional growth of the best performers
3) Not tolerating managerial performers. One cannot muscle build the organization, unless marginal performers are replaced.
4) Developing multiple skills and competencies by worshiping success and potential.
(g) Build Commitment in the Workplace
Change is an inevitable part of manager's job. As conditions change, individual responsibilities are also expected to change. In commitment-based approach, the workplace, jobs are designed to be broader than before, team accountability is as important as individual accountability for performance. The performance expectations are high and emphasize continuous important in the workplace.
Managers have to stop being my topic to performance appraisals. No personnel professional in the 90's will be able to afford the luxury of myopia. We have to see our way to the various changes in environment that are taking place and those changes that will revolutionize our organization culture in the out coming years. We must help our organization's triumphant progress through the 90s, by recognizing and rewarding performance.
METHODS OR TECHNIQUES OF APPRAISAL
Broadly all the approaches to appraisal can be classified into: a) Past Oriented Methods and
a) Past Oriented Methods
Rating Scales
This is the simplest and most popular technique for appraising employee performance. The typical rating scale system consists of several numerical scales, each representing a job-related performance criterion such as dependability, initiative, output, attendance, attitude, co-operation, and the like. Each scale ranges from excellent to poor. The rater checks the appropriate performance level on each criterion, and then computes the employee’s total numerical score. The number of points scored may be linked to salary increases etc.
Checklist
Under this method, a checklist of statements on the traits of the employee and his or her job is prepared in two columns – viz., a ‘Yes’ column and a ‘No’ column. All that the rater should do is to tick the ‘Yes’ column if the statement is positive and in column ‘No’ if the answer is negative. After ticking off against each item, the rater forwards the list to the HR department where the actual assessment of the employee takes place. In other words, the rater only does the reporting, while actual evaluation is done by the HR department. The HR department assigns certain points to each ‘Yes’ ticked. Depending on the number of ‘Yes’ the total score is arrived at. When points are allotted to the checklist, the technique becomes a weighed checklist.
Forced Choice Method
Here, there would be certain statements mentioned and the appraiser will only have to select the appropriate statement that suits the appraise. This is called as Forced Choice Method because here, the appraiser has no freedom at all. He only has a few statements that he will have to select that suit the appraise. The list is then forwarded to the HR Department who will do the assessment. There will be points given to each of the individual statements.
Forced Distribution Method
One of the errors in rating is leniency – clustering a large number of employees around a high point on a rating scale. The forced distribution method seeks to
overcome the problem by compelling the rater to distribute the rates on all points on the rating scale.
The method operates under an assumption that the employee performance level conforms to a normal statistical distribution. Generally, it is assumed that employee performance levels conform to a bell – shaped curve. For example, the following distribution might be assumed to exist - excellent 10%, good 20%, average 40% below average 20% and unsatisfactory 10%.
The major weakness of the forced distribution method lies in the assumption that employee performance levels always conform to a normal (or some other) distribution. In organizations that have done a good job of selecting and retaining only the good performers, the use of forced distribution approach would be unrealistic as well as possibly destructive to the employee morale. One merit of this approach is that it seeks to eliminate the error of leniency. This technique is however not acceptable by most of the rates and rates.
Critical Incidents Method
This method of employee assessment has generated a lot of interest these days. This approach focuses on certain critical behaviors of an employee that make all the differences between effective and non-effective performance of a job. Such incidents are recorded by the superiors as and when they occur.
One of the advantages of this method is that the evaluation is based on actual job behavior. Further, the approach has descriptions in support of particular ratings of an employee. Giving job – related feedback to the rate is also easy. It reduces bias on the part of the raters. The method however has significant limitations. These include:
a) Negative incidents tend to get noticed more than positive incidents. b) Recording is a chore, so supervisor could easily forget.
c) Overly close supervision may result.
Behaviorally anchored rating scales, sometimes called as Behavioral Expectation Scales are rating scales whose scale points are determined by statements of effective and ineffective behaviors. They are said to be behaviorally anchored in that the scales represent a range of descriptive statements of behavior on each scale best described and employee’s performance. Behaviorally anchored rating scales (BARS) have the following features:
1. Areas of performance to be evaluated are identified and defined by the people who will use the scales.
2. The scales are anchored by descriptions of actual job behavior that, supervisors agree, represent specific levels of performance. The result is a set of rating scales in which both dimensions and anchors are precisely defined.
3. All dimensions of performances to be evaluated are based on observable behaviors and are relevant to the job being evaluated since BARS are tailor made for the job.
4. Since the raters who will actually use the scales are actively involved in the development process, they are more likely to be committed to the final product. BARS were developed to provide results, which subordinates could use to improve performance. Superiors would feel comfortable to give feedback to the rates. Further BARS help to overcome rating errors. Unfortunately, this method too suffers from distortions inherent in most rating techniques.
Essay Method
Here, the rater must describe the employee within a number of broad categories such as.
1. The raters overall impression of the employee’s performance. 2. The promotability of the employee
3. The jobs that the employee is now qualified or capable to perform 4. The strengths and weakness of the employee
5. The training and development assistance required by the employee.
Although, this method might be used individually, it is most frequently used in combination with others. It is extremely useful in filing information gaps about the employees that often occur in the better-structured checklist method.
Cost Accounting Method
This method evaluates performance from the monetary returns the employee yields to his or her organization. A relationship is established between the cost included in keeping the employee and the benefit the organization derives from him or her. Performance of the employee is then evaluated based on the established relationship between the cost and the benefit.
b) Future Oriented Method
Management by Objectives (MBO)
The concept of MBO conceived by Peter F. Drunker, reflects a management philosophy which values and utilized employee contributions. Applications of MBO in the field of performance appraisals are a recent thinking.
The working of MBO can be described in four steps:
The first step is to establish the goals each person is to attain. These goals can be used to evaluate employee performance.
The second step involves setting the performance standard for the subordinates in a previously arranged time period. As subordinates perform, they know fairly well what there is to do, what has been done and what remains to be done.
The third step, the actual level of goal attainment is compared with the goals agreed upon. The evaluator explores reasons for the goals that were not met and for the goals that were exceeded. This step helps determine possible training needs. It also alerts the superior to conditions in the organization that may affect a subordinate but over which the subordinate has no control.
The final step involves establishing new goals and possibly, new strategies for goals not previously attained.
Psychological Appraisals
Large organizations employ full time industrial psychologists. When psychologists are used for evaluations, they assess an individual’s future potential and not past performance. The appraisal normally consists of in-depth interviews, psychological tests, discussions with superiors and a review of other evaluations. The psychologist then writes an evaluation of the employee’s intellectual, emotional, motivational and other related characteristics that suggest individual potential and my predict future performance. The evaluation by the psychologist may be for a specific job opening for which the person is being considered, or it may be a global assessment for his or her future potential. From these evaluations, placement and development decisions may be made to shape the person’s career.
360 Degree Appraisal
This is a technique of appraisals wherein multiple rates are involved in evaluating performance. This is understood as a systematic collection of performance data on an individual or group, derived from a number of stakeholders – the stakeholders being the immediate supervisors, team members, customers, peers and self. In fact, anyone who has any information on ‘how an employee does the job’ may be one of the appraisers. This provides a broader perspective about an employee’s performance. In addition, the technique provides for greater self-development of the employees. For an employees development multi-source feedback is very useful as it enables the employee to compare his or her perceptions of self with the perceptions of others.
