1

CHAPTER I – INTRODUCTION

1.1 INTRODUCTION ABOUT THE STUDY

Performance appraisal is an objective assessment of an individual‟s performance

against well defined benchmarks.

A performance appraisal also referred to as a performance review, performance

evaluation (career), development discussion, or employee appraisal is a method by which the
job. Performance of an employee is documented & evaluated.

Performance appraisal is the process of obtaining,analyzing and recording information

about the relative worth of an employee. The focus of the performance appraisal is measuring
and improving the actual performance of the employee and also the future potential of the
employee. Its aim is to measure an employee does.

Performance appraisal of employees is necessary to understand each employee‟s

abilities, competencies and relative merit and worth for the organization. Performance
appraisal rates the employee in terms of their performance. Performance appraisal is a
systematic way of reviewing and assessing the performance of an employee during a given
period of time and planning for his future.

Performance appraisal is the systematic evaluation of the performance of employees

and to understand the abilities of a person for further growth & development. Performance
appraisal is generally done in systematic ways which are as follows;

 The supervisors measure the pay of employees& compare it with

targets& plans.
 The supervisors analyses the factor behind work performance of
employees.
 The employers are in position to guide the employee for a better
performance.
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1.1.1 Process of Performance Appraisal

The process of performance appraisal is

Establishing performance standards

Communicating standards and expectations

Measuring the actual performance

Comparing with standards

Discussing result( providing feedback)

Decision making – taking corrective actions

a) Establishing performance standards

The first in the process of performance appraisal is the setting up of the standards
which will be used to as base to compare the actual performance of the employees. This
step requires setting the criteria to judge the performance of the employees as successful or
unsuccessful and the degree of their contribution to the organizational goals and
objectives. The standards set should be clear, easily understandable and in measurable
terms. In case the performance of the employee cannot be measured, great care should be
taken to describe the standards.
 3

b) Communicating standards and expectations

Once set, it is the responsibility of the management to communicate the standards to all
the employees of the organization. The employees should be informed and the standards
should be clearly explained to them. This will help them to understand their roles and to
know what exactly is expected from them. The standards should also be communicated to
the appraisers or the evaluators and if required, the standards can also be modified at this
stage itself according to the relevant feedback from the employees or the evaluators.
c) Measuring the actual performance
The most difficult part of the performance appraisal process is measuring the actual
performance of the employees that is work done by the employees during the actual
specified period of time. It is a continuous process which involves monitoring the
performance throughout the year this stage requires the careful selection of the appropriate
techniques of measurement, taking care that personal bias does not affect.
d) Comparing the actual with the desired performance
The actual performance is compared with the desired or the standard performance. The
comparison tells the deviations in the performance of the employees from the standards
set. The result can show the actual performance being more than the desired performance
or, the actual performance being less than the desired performance depicting a negative
deviation in the organizational performance. It includes recalling, evaluating and analysis
of data related to the employees performance.
e) Discussing results
The result of the appraisal is communicated and discussed with the employees on one-
to- one basis. The focus of this discussion is on communication and listening. The results,
the problems and possible solutions are discussed with the aim of problem solving and
reaching consensus. The feedback should be given with a positive attitude.
f) Decision making
The last step of the process is to take decisions which can be taken either to improve
the performance of the employees, take the required corrective actions, or the related hr
decisions like rewards, promotions, demotions, transfers etc.
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g) Challenges of performance appraisal

An organization comes across various problems and challenges of performance
appraisal in order to make a performance appraisal system effective and successful. The
main performance appraisal challenges involved in the performance appraisal process.
h) Determining the evaluation criteria
Identification of the appraisal criteria is one of the biggest problems faced by the top
management. The performance data to be considered for evaluation should be carefully
selected. For the purpose of evaluation, the criteria selected should be in quantifiable or
measurable terms.
i) 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.
j) Lack of competence
Top management should choose the raters or the evaluators carefully. They should
have the required expertise and the knowledge to decide the criteria accurately. They
should have the experience and the necessary training to carry out the appraisal process
objectively.
k) Errors in rating evaluation
Many errors based on the personal bias stereotyping, halo effect (i.e. one trait
influencing the evaluator‟s rating for all other traits) etc, may creep in the appraisal
process. Therefore the rater should exercise objectively and fairness in evaluating and
rating the performance of the employees.
l) Resistance
The appraisal process may face resistance from the employees and the trade unions for
the fear of negative ratings. Therefore, the employees should be communicated and clearly
explained the purpose as well as the process of appraisal. The standards should be clearly
communicated and every employee should be made aware that what exactly is expected
from him/ her.
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1.1.2 Purpose of Performance Appraisal

Performance appraisal is being practiced in 90% of the organizations worldwide. Self

appraisal and potential appraisal also form a part of the performance appraisal process.

Typically, performance appraisal is aimed at;

 To review the performance of the employees over a given period of time.

 To judge the gap between the actual and the desired performance.
 To help the management in exercising organizational control.
 To diagnose the training and development needs of the future.
 Provide information to assist in the hr decisions like promotions, transfers etc.

1.1.3 Approaches to Performance Development

i) Performance Appraisal- Traditional Approach

Traditionally, performance appraisal has been used as just a method for determining
and justifying the salaries of the employees. Than it began to be used a tool for determining
rewards ( a rise in the pay ) and punishments ( a cut in the pay) for the past performance of the
employees.

Therefore, this approach is also called as the overall approach. In 1950s the
performance appraisal was recognized as a complete system in itself and the modern approach
to performance appraisal was developed.

ii) Performance appraisal – Modern approach

The Modern approach to performance development has made the performance

appraisal process more formal and structured. Now, the performance appraisal is taken as a
tool to identify better performing employees from others, employees training needs, career
development paths, rewards and bonuses and their promotions to the next level.

The result of performance appraisals are used to take various other HR decisions like
promotions, demotions, transfers, training and development, reward outcomes.
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1.1.7 Techniques of Performance Appraisal

The various methods and techniques used for performance appraisal can be
categorized as the following traditional and modern method

Performance appraisal

Traditional methods Modern methods

1.Essay appraisal method 1. Management by objectives(MBO)

2.Straight ranking method 2. 360 degree appraisal

3.Paired comparison 3. Assessment centres

4.Critical incidents methods 4. Behaviorally anchored rating scales

5.Field review 5. Human resource accounting

6.Checklist method

7.Graphic ratings scale

8.Forced distribution

a) Traditional Methods of Performance Appraisal

1. Essay Appraisal Method

This traditional form of appraisal, also known as “free from method” involves a
description of the performance of an employee by his superior. The description is an
evaluation of the performance of any individual based on the facts and often includes
 7

examples and evidences to support the information. A major drawback of the method
is the inseparability of the bias of the evaluator.
2. Straight Ranking Method
This is one of the oldest and simplest techniques of performance appraisal in this
method; the appraiser ranks the employees from the best to the poorest on the basis of
their overall performance. It is quite useful for a comparative evaluation.
3. Paired Comparison
A better technique of comparison than the straight ranking method, this method
compares each employee with all others in the group, one at a time. After all the
comparison on the basis of the overall comparisons, the employees are given the final
rankings.
4. Critical Incidents Methods
In this method of performance appraisal, the evaluator rates the employee on the
basis of critical events and how the employee behaved during those incidents. It
includes both negative and positive points.The drawback of this method is that the
supervisor has to note down thecritical incidents and the employee behavior.
5. Field Review
In this method, a senior member of the HR department or a training officer
discusses and interviews the supervisors to evaluate and rate their respective
subordinates. A major drawback of this it is a very time consuming method. But this
method helps to reduce the superior‟s personal bias.
6. Checklist Method
The rate is given a checklist of the descriptions of the behavior of the employees on
job. The checklist contains a list of statements on the basis of which the rater describes
the on the job performance of the employees.
7. Graphic Rating Scale
In this method, an employee‟s quality and quantity of work is assessed in a
graphic scale indicating different degrees of a particular trait. The factors taken into
consideration include both the personal characteristics and characteristics related to the
on the job performance of the employees. For example a trait like knowledge may be
judged on the range of average, above average, outstanding or unsatisfactory.
 8

8. Forced Distribution
To eliminate the element of bias from the rater‟s ratings, the evaluator is asked to
distribute the employees in some fixed categories of ratings like on a normal
distribution curve. The rater chooses the appropriate fit for the categories on his own
discretion.
b) Modern Methods of Performance Appraisal
1. Assessment Centers
An Assessment centers typically involves the use of methods like social/ informal
events, tests and exercises, assignments being given to a group of employees to assess their
competencies to take higher responsibilities in the future. Generally, employees are given
an assignment similar to the job they would be expected to perform if promoted. The
trained evaluators observe and evaluate employees as they perform the assigned jobs and
evaluated on job related characteristics.
2. Behaviorally Anchored Rating Scales
Behaviorally anchored rating scales (BARS) is a relatively new technique which
combines the graphic rating scale and critical incidents method. It consists of
predetermined critical areas of job performance or sets of behavioral statements describing
important job performance qualities as good or bad.
3. Human Resource Accounting Method
Human resources are valuable assets for every organization. Human resource
accounting method tries to find the relative worth of these assets in the terms of money. In
this method the performance appraisal of the employees is judged in terms of cost and
contribution of the employees. The costs of employees include all the expenses incurred on
them like their contribution includes the total value added (in monetary terms). The
difference between the contributionwill be the performance of the employees. Ideally, the
contribution of the employees should be greater than the cost incurred on them.
 9

4. 360 Degree Performance Appraisals

360 degree feedback, also known as „multi-rater feedback‟, is the most

comprehensive appraisal where the feedback about the employees performance comes
from all the sources that come in contact with the employee on his job.
360 degree respondents for an employee can be his/her peers, managers (i.e. superior),
subordinates, term members, customers, suppliers/vendors- anyone who comes into
contact with the employee and can provide valuable insights and information or feedback
regarding the “ on-the-job” performance of the employee.
360 degree appraisal has four integral components:
1. Self appraisal
2. Superior‟s appraisal
3. Subordinate‟s appraisal
4. Peer appraisal

5.Management By Objectives

The concept of „Management by objectives‟ (MBO) was first given by peter

drucker in 1954. It can be defined as a process whereby the employees and the superiors
come together to identify common goals, the employees
set their goals to be achieved, the standards to be taken as the criteria for measurement of
their performance and contribution and deciding the course of action to be followed.
Management by objectives process:
 Define organizational goals
 Defining employee objectives
 Continuous monitoring of performance and progress
 Performance evaluation/ reviews
 Providing feedback
 Performance appraisals( rewards/ punishments)
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Features and advantages of MBO

The principle behind management by objectives (MBO) is to create empowered

employees who have clarity of the roles and responsibilities expected from them, understand
their objectives to be achieved and thus help in the achievement of organizational as well as
personal goals.

Some of the important features and advantages of MBO are;

Clarity of goals – with MBO, came the concept of SMART goals i.e. goals are

a. Specific
b. Measurable
c. Achievable
d. Realistic
e. Time bound
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1.2 OBJECTIVES OF THE STUDY

Primary objectives

To study the performance appraisal in prakash gears at Coimbatore.

Secondary objectives

1.To identify the existing methods of the performance appraisal in thecompany.

2. To evaluate the employee performance by using performance appraisal.

3. To analysis the satisfaction level of employees in performance appraisal.

4. Tovalue suggestion.
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1.3 SCOPE OF THE STUDY

Providing employees with a better understanding of their roles and

responsibility.Increase confidence through recognizing their strengths.Improve working
relationship and communication between superiors and subordinates.Assisting in personnel
decisions making such as promotions or allocating rewards.Allocating time for self-reflection,
self- appraisal and personal goal setting.
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1.4 LIMITATIONS OF THE STUDY

1. The employees perception towards the understanding of things might be different.

2. The study was based on the employee‟s attitudes and opinion.
3. The employees are not emotionally stable.
4. The information might be limited due to individual biases.
5. The process is usually done in a rushed manner.
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CHAPTER II – PROFILE

2.1 COMPANY PROFILE

Prakash Gears established in 1984, has made a name for itself as the manufactures of
spur gears, helical gears, bevel gears, sprockets, worm gears, worm reduction gears, OHTC
spares & textile spares. With a range of world class machinery like gear, hobbling,grinding
WMW and worm grinding machinery, adequate care is taken to maintain international quality
standards right across the various stages of production. We are steadily moving towards
attaining the much converted ISO 9001 certification, in the near future.

We also provide service of all types of gear boxes. Our product range is made up of
high quality of raw material under latest technology, which makes them highly efficient and
reliable.

Our basic motto is the customer total satisfaction and we lead our self in the same
direction, with our wide range of products, we have carved out a niche in the industry with
rich client base. To channelize our business in all directions, our network of sales partners
supports us immensely.

We serve our client diligently and specifically so as to give them complete satisfaction.
Mr.S.Manikandan is an active partner in the company & is carefully controlling all business
tasks given to him.

His regular checks over all major& minor activities that go on in our premises maintain
a sense of administration. It has law an administered processing of all business tasks. With his
immense support, we are continuously growing up and reaching new insights regularly.

He directly co-ordinates with team members in order to let them understand latest
technological intervention& new marketing policies. We immensely take care of making
customers happy&satisfied with our services.
 15

Owing to their applicability, our products are extensively demanded in various

industries like sugar, cement, steel, paper, chemicals, transport, irrigation, agriculture etc.

We constantly make efforts so as to improve our self in respect with the quality. It
helps us gain the satisfaction of our valued customers and our major exporting markets are
east asia, middle east, southestasia&indian subcontinent.

Our perchant for innovation& technical ideas are coupled with our undeviating
promises to deliver quality embedded range of industrial gears to our customers. We have
been grown by leaps & bounds, in a relatively short time period. It is with this same
commitment that we are marching confidently towards our awowed goal of attaining
undisputed leadership, in this highly dynamic & competitive industry.

2.1.1 Quality assurance

At Prakash Gears, we consistently by emphasis of maintaining higher standards of

quality access various stages of production. Our products are being put through a series of
quality tests by our experienced personals. We employee rich techniques to procure goods
which make them of supreme quality and commendable amongst our customers. Our premium
and durable packaging material keeps consignments in safe custody wile shipping.

2.1.2 Our products

Gears are mainly used for transmission of power and motion. In order that the rotary
motion of the drive shaft be perfectly uniform relative to the driving shaft, it is essential that
both gears be of perfect geometrical form and be perfectly mounted on perfect factor which
decides the accuracy of gearing is the precision with which gears are manufactured. For closer
control over the accuracy of manufacture, precision measurement of gears plays a vital role.

2.1.3 Our team

We have a team of highly dedicated, skilled and professional staff, with a shared vision
of ensuring „customes delight‟, each and every time. Our departmentalized and stream lined
mannee of task execution has seen us stick to the highest quality standards and promot
delivery scheduling.
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2.1.4 Raw materials

Material capability

Mid steel, alloy steels, stainless steel, cast iron, nylon, fibre, steel castings, plastic,
phosphor bronze, gunmetal, brass, copper, aluminum etc.

Our aim

Our penchant for incredible ideas coupled with our unflinching commitment to
delivering quality industrial gears has seen us grow by leaps and bounds, in a relatively short
span of time. It is with this same commitment that we at marching confidently towards our
avowed goal of attaining undisputed leadership, in this highly dynamic and competitive
industry.

2.1.5 Vision:

 Create global presence in power transmission by innovating & developing

products to enhance value & satisfaction of our customers.
 We adapt to the changes & meet the challenges by creative.

2.1.6 Mission:

 We are committed to be present in all the leading & emerging markets of the
world by expanding, collaborating& associating with other partners&
consolidating our presence inalready penetrate markets.
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2.2 INDUSTRY PROFILE:

We are a leading name in offering our customers precisin designed and engineered
range of industrial automotive gears. These are manufactured at our well equipped plant
having latest CNC machines. So as to achieve high precision performance in these gear
components matching up with the end usage by us through prototype development as well as
normal production means.

The range of industrial gear offered includes:

 Industrial helical gears

 Helical spur gears
 Helical pinion gears
 Automotive gears

Features of industrial helical gears:

 Best quality helical gears

 With teeth at any angle other than 90 degrees to face of gears these are
used in industry sectors like steels industry, rubber industry, material
handling equipment manufactures& others.

Features of helical spur gears:

 Most of the gears seen are spur gears

 The teeth are radically projected and are parallel to axis of gear.
 The teeth of spur gear are exactly perpendicular to its flat face.
 These are more efficient in performance.
 These are easy to assemble & can be easily mounted using ball bearings.

Features of helical pinion gears:

 These pinion gears are used for converting rotation into linear motion.
 Used in numerous industrial applications, these have teeth that spiral
around gear and are similar to spur gears.
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 These can be custome designed &can be made available in different

rations.
 They are noise free.
 These have least number of teeth to mesh with larger wheel.
 These deliver hassle free long life service.

Industrial automotive gears:

Uses & applications:

 Cars
 Off road applications
 Trucks
 High quality, heavy duty gears for vehicles like jeep, tractor & trucks.
 Delivering equal performance in transmission & differential
functioning.

Gears:

 Helical gears
 Worm gears
 Sporcket gears
 Spur gears
 Spur helical gears
 Double helical gears
 Worm shaft& worm gears
 Printing machine gears
 Cement plant gears
 Crane gears
 Sugar mill gears
 Turbine gears
 Pinion gears
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Gear boxes

 Extruder Gear boxes

 Industrial Gear boxes
 Double reduction worm Gear boxes
 Bevel helical & helical Gear boxes
 Crance duty helical Gear boxes
 Planetars Gear boxes
 Pump jack helical Gear boxes
 Helical Gear boxes
 20

CHAPTER III - REVIEW OF LITRATURE

3.1 THEORETICAL OVERVIEW

Performance appraisal continues to be subject of interest and importance to human

resource specialists. For decades, performance appraisal has received considerable attention in
the literature, from both researches and practitioners alike. Many authors (Bernardin&
Klatt,1985; Hall, Poster&Hardner, 1989; Maroney& Buckley, 1992; Thomas &Bretz, 1994)
maintain that there is a considerable gap between theory and practice, and that human
resources specialists are not making full use of the psychometric tools available. To support
their claim, these authors cite surveys of practitioners concerning current performance
appraisal methods and use.

Nearly two decades ago, Taylor and Zawacki (1976) published the first of two articles
that documented trends in performance appraisal usage among U.S organizations. When
comparing the results of two surways taken five years apart, the authors noted a remarkable
shift away from what they called collaborative approaches (e.g., MBO,BARS) and toward the
more traditional performance appraisal techniques (graphic rating scales). Taylor and Zawacki
(1984) hypothesized that were defensible in court, Accordingly, managers tended to be more
satisfied with the objective traditional approach, whereas their subordinates seemed to prefer
the developmental collaborative methods.

Douglass

To improve an individual employee‟s performance and accomplishments.

Newstrom

Evaluating the performance of employees, sharing that information.

Flippo

Periodic and an impartial rating of an employees excellence in the matters.

 21

Kressler

Requirements for successful business and human resource policy.

Pulakos

Rewarding and promoting effective performance in organizations.

 22

3.2 LITERATURE REVIEW

Performance appraisal is the process of obtaining, analyzing and recording information

about the relative worth of an employee. The focus of the performance appraisal is measuring
and improving the actual performance of the employee and also the future potential of the
employee. Its aim is to measure an employee does.

Performance appraisal of employees are necessary to understand each employee‟s

abilities, competencies and relative merit and worth for the organization. Performance
appraisal rates the employee in terms of their performance. Performance appraisal is a
systematic way of reviewing and assessing the performance of an employee during a given
period of time and planning for his future.

It is a powerful tool to calibrate, refine and reward the performance of the employee. It
help to analyze his achievements and evaluate his contribution towards the achievements of
the overall organizational goals.

“Performance appraisal is the systematic description of an employee‟s job relevant

strengths and weakness.”

-Sir Wayne Cascio

The author(Deepa. E, et al 2004) summarizes on the performance appraisal

system/method as a whole, their framework and its relationship with different job related
concepts as well as issues related to Performance appraisal such as how Performance appraisal
(PA) is related to job satisfaction, organization citizenship behaviour etc. The Performance
appraisal approach is formal and structured system of measuring as well as evaluating an
employee‟s job related behaviours and output for the same and to study how and why the
employee is currently performing on the job and how he can perform his job more effectively
in the near future. (Deepa. E, et al,2004).

There has been a historical evolution Performance appraisal approach. The

Performance appraisal process may be unsatisfactory for most people in industry; performance
appraisals serve a number of valuable organizational purposes. The appraisal system is
 23

complicated as there is a culture believes that people should be rewarded for outstanding
performance, yet does not like to receive negative feedback (Wiese, et al,1998). A
performance appraisal is conducted on an annual basis for existing employees whereas for
trainee and new recruits it is done on quarterly basis in many organizations. Here
author studies about the multidimensional nature of job where the nurse manager gives rating
to different job of nursing process.Thus, Employees who have relatively less competition or
lenient appraisers have higher appraisal than to equally competent employee (Rajput, et al,
2015).

A performance appraisal system is a wide concept and as a Performance Management

it has become a part of more strategic approach towards HR activities and as a result has it has
begun to focus more on motivational and social appraisal. As a result of this, the research on
the subject has moved beyond the limited and accuracy of performance ratings . The
organization‟s outcome that is its success and failure is determined by Performance appraisal,
thus this system is considered to be an important work performance in any
organization. (Fletcher, et al, 2001)

The article of the author (Roberts, et al, 2002) summarizes about the foundation for
participation of employee including its intrinsic motivational value, present available
information. The role of goal setting and feedback of performance appraisal for enhancing
participation effectiveness is outlined. The factors that resulted in lack of effectiveness of
participation includes lack of training of employee, absence of rater accountability strategies,
and organizational and supervisors resistance to honest subordinate feedback (Roberts, et al,
2002). Here the research is based on a sample of 170 respondents who answered a
questionnaire giving their perceptions on the purpose and criteria of PA. There are different
techniques of appraisal such as behavior-based, objective-based and judgment-based. The
study provides HR practitioners with suggestions on how to increase the perceived justice of
the PA system (Palaiologos, et al, 2011).
 24

CHAPTER IV – ANALYSIS AND INTERPREDATION

4.1 RESEARCH METHODOLOGY

Research methodology is way to systematically solve the problem by applying various

research techniques along with the logic behind the problem.

4.1.1 Research Design

Research design is the arrangements of conditions for collection and analysis of data in
a manner that aims to combine relevance to research purpose.

The research design adopted for this study is descriptive research design. Descriptive
research includes survey and fact-finding enquires of different kinds. The major purpose of
descriptive research is descriptions of the state of affairs, as it exists as present. The main
characteristic of this method is that the researcher has no control over the variables; he can
only report what has happened or what is happening.

4.1.2 Sampling Technique

The sampling technique used for this study convenience sampling. This method of
sampling involves selecting for the sample elements using some convenient method without
going through the rigor of sampling method. The researcher may make use of any convenient
base to select the required number of samples.

4.1.3 Sources of data

The study was conducted by using both primary and secondary data sources.

a) Primary data

Primary source of data is obtained by the researcher from the respondent which has
been collected previously. Primary data first hand information collected through various
methods as observation and interviewing. The primary data was collected through by
surveying the mentioned sample unit.
 25

b) Secondary data

“The secondary data, on the other hand are those which have been collected by
someone else and passed through the statistical process”.

The researcher collected secondary data information‟s through the company journals,
magazines, books and related websites.

4.1.4 Research instrument;

Questionnaire is used as a research instrument in the study. Primary data is collected

through questionnaire.

4.1.5. Sample design;

A definitely plan for opptaining a sample from a given population i.e. the technique
adaptor in selecting items for the sample.

4.1.6 Population;

Population is the totally of all observation of a statistical enquire the total population
of the study at 180 prakas gears company.

4.1.7 Sample size;

The analysis number of observation included in sample is called sample size. The
researcher fixed the sample size as 100 for this study.

4.1.8 Tools for analysis;

The collected data was analyzed using the tools given blow

 Percentage analysis method

 Chi-square analysis
 26

4.2 DATA ANALYSIS AND INTERTRETATION

Percentage analysis;

Percentage is used in make in comparison between two are more serious of data.
Percentages are used in two describe relationship it can be used to compare in relative terms
the distribution of two are more series of data.

Percentage analysis=(number of respondents/total number of respondents)*100

Chi-square calculation

Chi-square analysis

The chi-square analysis used to determine whether there is a significant difference

between the expected frequencies and the observed frequencies is one are more categories

-
Chi –square,x2= ∑ (Oi Ei)2

Ei
Where

O = an observed frequency

E = an expected frequency

Null hypothesis (H0):

There is no significance relationship between observed frequency and expected

frequency.

Alternative hypothesis (H1):

There is a significant relationship between observed frequency and expected

frequency.
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Table No. 4.2.1

Age

Options No of respondents Percentage

20 – 25 50 50
26– 30 10 10
31 – 35 30 30
36 – 40 10 10
Total 100 100
Source: Primary Data Questionnaire (Q No-1)

Inference

It is inferred from the above table that 50 % of the respondents are 20 – 25, 10 %
of the respondents are between 26 – 30, 30% of the respondents are 31 – 35, 10% of the
respondents are above 36 - 40.

Chart 4.2.1

Age

100
90
80
70
Percentage

60
50
40
30
20
10
0
20 - 25 26 - 30 31 - 35 36 - 40
Age
 28

Table No. 4.2.2

Gender

Options No of respondents Percentage

Male 58 58
Female 42 42
Total 100 100
Source : Primary DataQuestionnaire (Q No-2)

Inference

It is inferred from the above table that 58% of the respondents are Male, 42% of
the respondents are Female.

Chart 4.2.2

Gender

100
90
80
70
percentage

60
50
40
30
20
10
0
male female
Gender
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Table No. 4.2.3

Qualification

Options No of respondents Percentage

school 26 26
diploma 18 18
Under graduate 32 32
Post graduate 24 24
Total 100 100
Source: Primary Data Questionnaire (Q No-3)

Inference

It is inferred from the above table that 26% of the respondents are school, 18% of
the respondents are between diploma, 32% of the respondents are under graduate, 24% of the
respondents are above post graduate.

Chart 4.2.3

Qualification

100
90
80
70
Percentage

60
50
40
30
20
10
0
school diploma under graduate post graduate
qualification
 30

Table No. 4.2.4

Experience

Options No of respondents Percentage

Up to 1 years 15 15
1-5 years 37 37
5-10 years 18 18
over 10 years 30 30
Total 100 100
Source: Primary Data Questionnaire (Q No-4)

Inference

It is inferred from the above table that 30 % of the respondents are upto 1years,
60 % of the respondents are 1-5 years, 10% of the respondents are 5-10 years,0% of the
respondents are over 10 years.

Chart 4.2.4

Experience

100
90
80
70
Percentage

60
50
40
30
20
10
0
up to 1 years 1-5 years 5-10 years over 10 years
Experience
 31

Table No. 4.2.5

Previous performance evaluation

Options No of respondents Percentage

Up to 6 months 15 15
7 to 12 months 55 55
13 to 24 months 20 20
Over 24 months 10 10
Total 100 100
Source: Primary Data Questionnaire (Q No-5)

Inference

It is inferred from the above table that 15% of the respondents are up to 6 months,
55% of the respondents are 7 to 12 months, 20% of the respondents are 13 to 24 months, 10%
of the respondents are over 24 months.

Chart 4.2.5

Previous performance evaluation

100
90
80
70
60
percentage

50 Series 1
40 Series 2
30 Series 3
20
10
0
up to 6 months 7 to 12 months 13 to 24 months over 24 months
previous performance evaluation
 32

Table No.4.2.6

Participation in the evaluation

Options No of respondents Percentage

Very participative 53 53
Not participative 5 5
Participative 30 30
Somewhat part 12 12
Total 100 100
Source: Primary DataQuestionnaire (Q No-6)

Inference

It is inferred from the above table that 53 % of the respondents are very participative, 5% of
the respondents not participative, 30% of the respondents are participative, 12% of the
respondents are somewhat part.

Chart 4.2.6

Participation in the evaluation

100
90
80
70
Percentage

60
50
40
30
20
10
0
Very participative Notparticipative Participative Some what part
participation in the evaluation
 33

Table 4.2.7

Evaluation tool

Options No of respondents Percentage

Highly satisfied 53 53
Satisfied 38 38
Highly dissatisfied 4 4
Dissatisfied 5 5
Total 100 100
Source: Primary DataQuestionnaire (Q No-7)

Inference

It is inferred from the above table that 52% of the respondents about training procedure given
by the management is highly satisfied, 48 % of the respondents satisfied, 0% of the
respondents are highly dissatisfied, 0% of the respondents are dissatisfied.

Chart 4.2.7

Evaluation tool

100
90
80
70
Percentage

60
50
40
30
20
10
0
highly satisfied satisfied highly dissatisfied dissatisfied

evaluation tool
.
 34

Table No. 4.2.8

Evaluator performance conducted the interview

Options No of respondents Percentage

Highly Satisfied 59 59
Satisfied 28 28
Highly dissatisfied 5 5
Dissatisfied 8 8
Total 100 100
Source: Primary DataQuestionnaire (Q No-8)

Inference

It is inferred from the above table that 59% of the respondents about children educational
allowance given by the management is highly satisfied, 28% of the respondents satisfied,5%
of the respondents are highly dissatisfied, 8% of the respondents are dissatisfied .

Chart 4.2.8

Evaluator performance conducted the interview

100
90
80
70
Percentage

60
50
40
30
20
10
0
highly Satisfied Satisfied highly dissatisfied Dissatisfied
evaluator performance conducted the interview
 35

Table No. 4.2.9

Attitudes during the evaluation

Options No of respondents Percentage

Dialogue 30 30
Feedback 33 33
Intimidation 27 27
Abusive use of power 10 10
Total 100 100
Source: Primary Data Questionnaire (Q No-9)

Inference

It is inferred from the above table that 30 % of the respondents about Medical benefit provide
by the management is strongly dialogue, 33 % of the respondents feedback, 27% of the
respondents are intimidation, 10% of the respondents are abusive use of power

Chart 4.2.9

Attitudes during the evaluation

100
90
80
70
percentage

60
50
40
30
20
10
0
dialogue feedback intimidation abusive use of power
attitudes during the evaluation
 36

Table No. 4.2.10

Stressed during the evaluation

Options No of respondents Percentage

Positive aspects 30 30
Negative aspects 2 2
Improving aspects 20 20
Encouraging potentials 48 48
Total 100 100
Source: Primary DataQuestionnaire (Q No-10)

Inference

It is inferred from the above table that 30 % of the respondents about grievance handling
procedure followed by the management is positive aspects, 2% of the respondents negative
aspects, 20% of the respondents are improving aspects, 48% of the respondents are
encouraging potentials.

Chart 4.2.10

Stressed during the evaluation

100
90
80
70
60
Percentage

50
40
30
20
10
0
Positive aspects Negative aspects Improving aspects Encouraging
potentials
stressed during the evaluation
 37

Table No. 4.2.11

Feeling during the performance evaluation

Options No of respondents Percentage

Fear 10 10
Insecurity 0 0
Tranquility 30 30
Satisfaction 60 60
Total 100 100
Source: Primary DataQuestionnaire (Q No-11)

Inference

It is inferred from the above table that 10% of the respondents about festival gift
provide in your hospital is fear, 0 % of the respondents insecurity, 30% of the respondents are
tranquility, 60% of the respondents are satisfaction .

Chart 4.2.11

Feeling during the performance evaluation

100
90
80
70
percentage

60
50
40
30
20
10
0
Fear Insecurity Tranquillity Satisfaction
feeling during the performance evaluation
 38

Table No. 4.2.12

Goals of the evaluation

Options No of respondents Percentage

Professional development 49 49
promotion 18 18
Financial incentive 23 23
others 10 10
Total 100 100
Source : Primary DataQuestionnaire (Q No-12)

Inference

It is inferred from the above table that 49 % of the respondents about comment on your
attitude towards motivational practices is professional development, 18% of the respondents
promotion, 23% of the respondents are financial incentive, 10% of the respondents are others.

Chart 4.2.12

Goals of the evaluation

100
90
80
70
percentage

60
50
40
30
20
10
0
Professional promotion Financial incentive others
development
goals of the evaluation
 39

Table No. 4.2.13

Evaluation of professional motivation

Options No of respondents Percentage

Strongly motivated 60 60
Motivated 10 10
Somewhat motivated 20 20
unmotivated 10 10
Total 100 100
Source : Primary DataQuestionnaire (Q No-13)

Inference

It is inferred from the above table that 10 % of the respondents about job promotion are
awarded based on merit is strongly motivated, 60 % of the respondents motivated, 20% of the
respondents are somewhat motivated, 10% of the respondents are unmotivated

Chart 4.2.13

Evaluation of professional motivation

100
90
80
70
percentage

60
50
40
30
20
10
0
highly motivated Motivated Somewhat motivated unmotivated
evaluation of professioal motivation
 40

Table No. 4.2.14

Evaluation of performance management practices

Options No of respondents Percentage

Yes 73 73
No 27 27
Total 100 100
Source : Primary DataQuestionnaire (Q No-14)

Inference

It is inferred from the above table that 73% of the respondents about Training opportunity are
available to everyone is strongly agree, 27% of the respondents no.

Chart 4.2.14

Evaluation of performance management practices

100
90
80
70
percentage

60
50
40
30
20
10
0
yes no
evaluation of performance management practices
.
 41

Table No. 4.2.15

Specify the process to evaluate

Options No of respondents Percentage

Opinion/ attitude survey 43 43
Informal feedback 12 12
Formal feedback 35 35
Other 10 10
Total 100 100
Source : Primary Data Questionnaire (Q No-15)

Inference

It is inferred from the above table that 43 % of the respondents about coaching and feedback
that support career development is opinion/attitude survey, 12 % of the respondents informal
feedback, 35% of the respondents are formal feedback, 1o% of the respondents are other .

Chart 4.2.15

Specify the process to evaluate

100
90
80
70
percentage

60
50
40
30
20
10
0
Opinion/ attitude Informal feedback Formal feedback other
survey
specify the process evaluator
 42

Table No. 4.2.16

Strategy linked to the performance management system

Options No of respondents Percentage

Reward strategy 33 33
Culture strategy 36 36
Teamwork strategy 20 20
Leadership strategy 11 11
Total 100 100
Source : Primary Data Questionnaire (Q No-16)

Inference

It is inferred from the above table that 33% of the respondents about hospital benefit meet my
needs is reward strategy, 36% of the respondents culture strategy, 20% of the respondents are
teamwork strategy, 11% of the respondents are leadership .

Chart 4.2.16

Strategy linked to the performance management system

100
90
80
70
percentage

60
50
40
30
20
10
0
Reward strategy Culture strategy Teamwork strategy Leadership strategy
strategies linked to the performance management
 43

Table No. 4.2.17

Attrition rate the performance appraisal

Options No of respondents Percentage

Yes 79 79
No 21 21
Total 100 100
Source : Primary Data Questionnaire (Q No-17)

Inference

It is inferred from the above table that 79 % of the respondents about Management will use
this survey‟s feedback to make improvement yes, 21 % of the respondents No.

Chart 4.2.17

Attrition rate the performance appraisal

100
90
80
70
percentage

60
50
40
30
20
10
0
yes no
attrition rate the performance appraisal
 44

Table No. 4.2.18

Attrition during the post appraisal phase

Options No of respondents Percentage

Increase in employee 88 88
turnover
Decrease in employee 12 12
turnover
Total 100 100
Source : Primary Data Questionnaire (Q No-18)

Inference

It is inferred from the above table that 88% of the respondents about understand the policies
related overtime and alternate work arrangements is increase in emploee turnover, 12 % of the
respondents decrease in employee turnover.

Chart 4.2.18

Attrition during the post appraisal phase

100
90
80
70
percentage

60
50
Series 1
40
30 Series 2
20 Series 3
10
0
increase in decrease in
employee turnover employee turnover
attrition during the post appraisal phase
 45

Table No. 4.2.19

Performance management process improving overall performance

Options No of respondents Percentage

Effective 28 28
Moderately effective 38 38
Ineffective 31 31
Don‟t know 3 3
Total 100 100
Source : Primary Data Questionnaire (Q No-19)

Inference

It is inferred from the above table that 28 % of the respondents about factors indicate job
satisfaction is effective, 38 % of the respondents moderately effective, 31% of the respondents
are ineffective, 3% of the respondents are don‟t know .

Chart 4.2.19

Performance management process improving overall performance

100
90
80
70
percentage

60
50
40
30
20
10
0
effective moderately effective ineffective don't know
performance management process in improving overall performance
 46

Table No. 4.2.20

Improve the performance up to the mark

Options No of respondents Percentage

Yes 88 88
No 12 12
Total 100 100
Source : Primary Data Questionnaire (Q No-20)

Inference

It is inferred from the above table that 88 % of the respondents about what measure should be
taken to reduce negative attitude in your management is yes, 12% of the respondents no.

Chart 4.2.20

Improve the performance up to the mark

100
90
80
70
percentage

60
50
40
30
20
10
0
yes no
improve the performance up to mark
 47

Table No. 4.2.21

Method of planning the activities and assigning the marks

Options No of respondents Percentage

Highly satisfaction 48 48
satisfaction 39 39
Highly unsatisfaction 3 3
unsatisfaction 10 10
Total 100 100
Source : Primary Data Questionnaire (Q No-21)

Inference

It is inferred from the above table that 48 % of the respondents about job rotation done by
supervisor is Highly satisfaction, 39 % of the respondents satisfaction , 3% of the respondents
are highly unsatisfaction, 10% of the respondents are unsatisfaction.

Chart 4.2.21

Improve the performance up to the marks

100
90
80
70
percentage

60
50
40
30
20
10
0
highly satisfaction satisfaction highly unsatisfaction unsatisfaction
method of planning the activities and aassigning the marks
 48

Table No. 4.2.22

Department objectives and business plan

Options No of respondents Percentage

Yes, definitely 50 50
I am not certain 30 30
It does‟t seem to be not 10 10
Definitely 10 10
Total 100 100
Source : Primary Data Questionnaire (Q No-22)

Inference

It is inferred from the above table that 50% of the respondents about frequent chance has
given improving your skill and job isYes, definitely, 30 % of the respondentsI am not certain
,10% of the respondents areIt does‟t seem to be not , 10% of the respondents are definitely .

Chart 4.2.22

Department objectives and business plan

100
90
80
70
60
percentage

50
Series 1
40
Column1
30
20 Column2
10
0
yes,definitely I am not certain it does't seem to definitely
be not
department objectives and business plan
 49

Table No. 4.2.23

Appraisal system in improving the performance

Options No of respondents Percentage

Highly effective 44 44
In effective 5 5
Effective 32 32
Highly ineffective 19 19
Total 100 100
Source : Primary Data Questionnaire (Q No-23)

Inference

It is inferred from the above table that 44 % of the respondents about Opinion
about stress relief program is highly effective, 5% of the respondentsin effective, 32% of the
respondents are effective, 19% of the respondents are highly ineffective

Chart 4.2.23

Appraisal system in improving the performance

50
45
40
35
percentage

30
25
20 Series 1
15
Series 2
10
5 Series 3
0
highly effective ineffective effective highly ineffective
appraisal system in improving the performance
 50

Table 4.2.24

CHI-SQUARE TEST

ATTITUDES VS STRONGLY STRESSED THE PERFORMANCE APPRAISAL

Positive Negative Improving Encouraging

aspects aspects aspects potentials
Dialogue 34 0 36 0

Feedback 5 0 10 0

Intimidation 3 0 2 0

Abusive use of 8 0 2 0
power
Total 52 0 48 0

NULL HYPOTHESIS (H0):

There is no significant relationship between attitudesand strongly stressed

the performance appraisal

ALTERNATIVE HYPOTHESIS (H1):

There is significant relationship between attitudesandstrongly stressed

the performance appraisal
 51

observed frequency expected (O-E) (O-E)^2 (O-E)^2/E

frequency
34 36.4 2.4 5.76 0.158241758

36 33.6 2.4 5.76 0.171428571

5 7.8 2.8 7.84 1.005128205

10 7.2 2.8 7.84 1.088888889

3 2.6 0.4 0.16 0.061538462

2 2.4 0.4 0.16 0.066666667

8 5.2 2.8 7.84 1.507692308

2 4.8 2.8 7.84 1.633333333

100 5.692918193

-
Chi-square, x2= ∑ (Oi Ei)2

Ei
=5.693

Degree of freedom = (C-1) (R-1)

= (4-1) (4-1)

= (3) (3)

=9
 52

Level of significance = 5%

x2=8.342
5.693 <8.342

i.e., Calculated value < Table value

Degree of freedom = 9

Calculated value =5.693

Table value = 8.342

Findings:

As Pearson Chi-square is value is 8.342 for degree of freedom 9. Calculated value is

5.693. so H0 s accepted.

Since H0 is accepted, there is significant relationship between attitudes and strongly

stressed the performance appraisal.
 53

CHAPTER V - CONCLUSION

5.1 FINDINGS

1. 50 % of the respondents are 20 – 25,

2. 58% of the respondents are Male, 42% of the respondents are Female.
3. 53 % of the respondents are very participative, 5% of the respondents not participative,
30% of the respondents are participative,
4. 52% of the respondents about training procedure given by the management is highly
satisfied, 48 % of the respondents satisfied,
5. 59% of the respondents about children educational allowance given by the
management is highly satisfied,.
6. 44 % of the respondents about Opinion about stress relief program is highly effective,
7. 48 % of the respondents about job rotation done by supervisor is Highly satisfaction,
39 % of the respondents satisfaction
8. 38 % of the respondents moderately effective, 31% of the respondents are ineffective,
3% of the respondents are don‟t know .
9. 79 % of the respondents about Management will use this survey‟s feedback to make
improvement yes, 21 % of the respondents No.
10. % of the respondents about coaching and feedback that support career development is
opinion/attitude survey,
11. 43 % of the respondents about coaching and feedback that support career development
is opinion/attitude survey, 73% of the respondents about Training opportunity are
available to everyone is strongly agree, 27% of the respondents no.
Chi-square.
 There is significant relationship between attitudes and strongly stressed the
performance appraisal.
 54

5.2 SUGGESTIONS

1. Training programs on time management can be conducted for the employees

to create awareness about time management and planning of work.
2. Performance appraisal is a tool for the employees to identify themselves. So
the organization has to maintain free-rein leadership, whereby employees
freely express their opinion regarding appraisal.
3. Promotion is a process where the employees goes to the next step in their
career, so the organization promotes the employees based on their
performance.
4. Participation or performances of the employees change day by day, so the
organization wants a frequent performance evaluation to identify the current
performance.
5. The organization should maintain annual performance standard, which help
the employees to know their current status and therefore analyze their
performance and try to improve themselves.
 55

5.3 CONCLUSION

The project work consists of the study on “Performance Appraisal of employees in

PREKASH GEARS COIMBATORE”. This study has been done on various dimensions like
level of involvement, interest, loyalty and attachment the employees have towards their job as
well as the organization.

This study clearly pinpoints the employee‟s performance level. The study clearly states
the performance of the employees for the current period. It analysis the reason for deviation in
their desired performance and actual performance.