INTERNSHIP REPORT

ON PERFORMANCE APPRAISAL AT
AAI, GAYA

MASTERS OF PERSONNEL MANAGEMENT & INDUSTRIAL

RELATIONS (2022-2024)

submitted to

KUMAR ANAND
Asst. (HR)
AAI,GAYA

Submitted by:

NISHANT KUMAR
. SEM. 3, MPMIR
. BHU, Varanasi, 221005
 ACKNOWLEDGEMENT

We extend our sincere appreciation to Mr. Kumar Anand, Assistant HR, for
affording us the valuable opportunity to serve as interns within this
esteemed organization. Our gratitude is extended to Mr. Kumar Anand for
his discerning allocation of an internship topic aligned with our
professional interests and for his consistent support and guidance in his
capacity as our reporting officer.

Special recognition is due to Mrs. Jidana A Topno, Manager, HR, AAI, Gaya,
for graciously permitting us to learn and contribute under her guidance,
serving as our immediate source of support.

We express our gratitude to Mr. Sandeep Kumar for granting us permission

to undertake our summer training within this prestigious organization. We
acknowledge his profound involvement, continuous guidance throughout
the project, and unwavering support throughout our entire summer
internship program.

Our sincere thanks are extended to our parents and family members for
their unwavering cooperation and encouragement, pivotal to the
successful completion of this project. Additionally, we acknowledge the
contributions of the employees of Airport Authority of India - I, who,
directly or indirectly, facilitated the successful conclusion of our project.

Thanking You.
Nishant Kumar

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INDEX

Sl. No. Topic

1 Executive Summary

2. Company Profile
a) Company Overview

b) Objectives

c) Vision And Mission

d) AAI Board Members

e) Board of directors
f) Organizational Structure In AAI
3. Performance Appraisal System

a) Introduction

b) Objectives & benefits of Performance Appraisal

c) Methods of Performance Appraisal

4. About the Project

4.1Abstract
4.2 Introduction
a) Performance Appraisal In AAI (KPA)
b) Methods Used In Knowledge Performance Appraisal
c) Importance and Benefits
5. Objectives
6. Methodology

7. Implementations
8. Drawbacks, Solutions & suggestions

9. Conclusion
10. Result and Discussion

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EXECUTIVE SUMMARY

India is one of the largest domestic aviation markets in the world and handles
the third-largest domestic traffic after the USA and China. Airports Authority of
India (AAI) is India’s leading airport operator and sole air navigation service
provider. It manages more than 100 airports and provides air navigation
services for over 2.8 million square nautical miles of air space. In line with the
Hon’ble Prime Minister’s goal of achieving net zero emissions by 2070, AAI is
committed to conserving the environment and resources, and has instituted the
“Environment Policy” that reflects its commitment to sustainable development
by implementing cost-effective carbon mitigation actions to preserve the
environment and thus contribute to sustainable development goals. AAI has set
a plan to switch from fossil fuel-based electricity to green electricity and
achieve 100% energy through RE in all airports. Towards AAI’s decarbonisation
efforts, energy performance and emission benchmarking exercises were
conducted at multiple airports in India. It is important to note that airports’
energy and emission intensities are a function of the climate zone in which they
are located since very hot and very cold climate warrant high HVAC energy
consumption and GHG emissions. The GHG emissions from the Top-25 AAI-
managed airports amounted to a total of 227 thousand tCO2e in 2019 (Pre-
Covid year). The emission intensity of the top 25 AAI-managed airports was
calculated to be between 0.3-3.6 kgCO2e/PAX/year. Infrastructural initiatives by
AAI at its airports include the adoption of green buildings and installation of
solar power plants alongside technological initiatives, such as the replacement
of previous light fixtures with LED light fixtures, installation of energy-efficient
HVAC systems and adoption of innovative renewable energy technologies.
Simultaneously, advancements in operational efficiency efforts, including
improvement in Air Traffic management through the integration of strategies
including AirportCollaborative Decision Making (A-CDM) and Performance
Based Navigation (PBN), will significantly augment operational energy efficiency.
Concurrently, AAI is participating in the Airport Carbon Accreditation program
launched by Airports Council International (ACI) to follow best practices in GHG
emission reduction and has obtained ACI-ACA Level-2 accreditation certificates
for four airports. In the context of renewable energy, AAI is already meeting
about 30% of its energy requirement through renewable sources and has a total
installed solar capacity of around 40 MWp as of March 2022. AAI is committed
to enhancing the solar capacity to 100 MWp by 2024. Going forward, AAI aims
to achieve net zero emissions by 2050 to contribute to GoI’s goal of achieving
net zero emissions by 2070.

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 CHAPTER – 1
COMPANY PROFILE
.

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 Airports Authority of India (AAI) was constituted by an Act of Parliament and
came into being on 1st April 1995 by merging erstwhile National Airports
Authority and International Airports Authority of India. The merger brought into
existence a single Organization entrusted with the responsibility of creating,
upgrading, maintaining and managing civil aviation infrastructure both on the
ground and air space in the country.
AAI manages a total of 137 airports which include 24 International airports (3 Civil
Enclaves), 10 Custom Airports (4 Civil Enclaves) and 103 Domestic airports (23
Civil Enclaves). AAI provides air navigation services over 2.8 million square
nautical miles of air space. During the year 2019-20, AAI handled aircraft
movement of 1314.23 Thousand [International 156.0 & Domestic 1158.23],
Passengers handled 159.59 Million [International 22.26 & Domestic 137.33] and
the cargo handled 909.32 thousand MT [International 452.46 & Domestic
456.85]. Further, all Indian airports taken together have handled aircraft movement
of 2587.05 Thousand [International 431.85 & Domestic 2155.20], Passengers
handled 341.05 Million [International 66.54& Domestic 274.51] and the car go
handled 3328.63 thousand MT [International 2003.12 & Domestic 1325.51].
1. Passenger Facilities

The main functions of AAI inter-alia include construction, modification

& management of passenger terminals, development & management of
cargo terminals, development & maintenance of apron infrastructure
including runways, parallel taxiways, apron etc., Provision of
Communication, Navigation and Surveillance which includes provision
of DVOR / DME, ILS, ATC radars, visual aids etc., provision of air
traffic services, provision of passenger facilities and related amenities at
its terminals thereby ensuring safe and secure operations of aircraft,
passenger and cargo in the country.
2. Air Navigation Services

In tune with global approach to modernization of Air Navigation

infrastructure for seamless navigation across state and regional
boundaries, AAI has been going ahead with its plans for transition to
satellite based Communication, Navigation, Surveillance a nd Air Traffic
Management. A number of co-operation agreements and memoranda of
co-operation have been signed with US Federal Aviation Administration,
US Trade & Development Agency, European Union, Air Services
Australia and the French Government Co-operative Projects and Studies
initiated to gain from their experience. Through these activities more
and more executives of AAI are being exposed to the latest technology,
modern practices & procedures being adopted to improve the overall
performance of Airports and Air Navigation Services.

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 Induction of latest state-of-the-art equipment, both as replacement and
old equipments and also as new facilities to improve standards of safety
of airports in the air is a continuous process. Adoptions of new and
improved procedure go hand in hand with induction of new equipment.
Some of the major initiatives in this direction are introduction of
Reduced Vertical Separation Minima (RVSM) in India air space to
increase airspace capacity and reduce congestion in the air;
implementation of GPS And Geo Augmented Navigation (GAGAN)
jointly with ISRO which when put to operation would be one of the four
such systems in the world.
3. Security

The continuing security environment has brought into focus the need for
strengthening security of vital installations. There was thus an urgent need
to revamp the security at airports not only to thwart any misadventure but
also to restore confidence of traveling public in the security of air travel
as a whole, which was shaken after 9/11 tragedy. With this in view, a
number of steps were taken including deployment of CISF for airport
security, CCTV surveillance system at sensitive airports, latest and stat e-
of-the-art X-ray baggage inspection systems, premier security &
surveillance systems. Smart Cards for access control to vital installations
at airports are also being considered to supplement the efforts of security
personnel at sensitive airports.
4. Aerodrome Facilities

In Airports Authority of India, the basic approach to planning of airport

facilities has been adopted to create capacity ahead of demand in our
efforts. Towards implementation of this strategy, a number of projects
for extension and strengthening of runway, taxi track and aprons at
different airports has been taken up. Extension of runway to 7500 ft. has
been taken up to support operation for Airbus -320/Boeing 737-800
category of aircrafts at all airports.
5. HRD Training

A large pool of trained and highly skilled manpower is one of the major
assets of Airports Authority of India. Development and Technological
enhancements and consequent refinement of operating standards and
procedures, new standards of safety and security and improvements in
management techniques call for continuing training to update the
knowledge and skill of officers and staff. For this purpose AAI has a
number of training establishments, viz. NIAMAR in Delhi, CATC in
Allahabad, Fire Training Centres at Delhi & Kolkata for in-house
training of its engineers, Air Traffic Controllers, Rescue & Fire Fighting
personnel etc. NIAMAR & CATC are members of ICAO TRAINER
programme under which they share Standard Training Packages (STP)

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 from a central pool for imparting training on various subjects. Both
CATC & NIAMAR have also contributed a number of STPs to the
Central pool under ICAO TRAINER programme. Foreign students have
also been participating in the training programme being conduc ted by
these institution
6. IT Implementation

Information Technology holds the key to operational and managerial

efficiency, transparency and employee productivity. AAI initiated a
programme to indoctrinate IT culture among its employees and this is
most powerful tool to enhance efficiency in the orga nization. AAI
website with domain name www.airportsindia.org.in or www.aai.aero is
a popular website giving a host of information about the organization
besides domestic and international flight information of interest to the
public in general and passengers in particular.

The functions of AAI are as follows:

1. Design, Development, Operation and Maintenance of international and

domestic airports and civil enclaves.
2. Control and Management of the Indian airspace extending beyond the
territorial limits of the country, as accepted by ICAO.
3. Construction, Modification and Management of passenger terminals.
4. Development and Management of cargo terminals at international and
domestic airports.
5. Provision of passenger facilities and information system at the passenger
terminals at airports.
6. Expansion and strengthening of operation area, viz. Runways, Aprons,
Taxiway etc.
7. Provision of visual aids.
8. Provision of Communication and Navigation aids, viz. ILS, DVOR, DME,
Radar etc.

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9
AAI BOARD MEMBERS

Ex-Officio Member

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11
12
 CHAPTER – 2
PERFORMANCE APPRAISAL

13
INTRODUCTION

Performance Appraisal is a method of evaluating the behavior of employees in the

work spot, normally including both the qualitative and qualitative aspects of job
performance. It is a systematic and objective way of evaluating both work-related
behaviour and potential of employees. Performance refers to degree of
accomplishment of the tasks that make up an individual’s job. Performance is always
measured in terms of results.

People are the greatest assets of an organization. It is through people goals are set
and transformed into meaningful results. Organizations in fact rise to commanding
heights, over a period of time, through the invaluable contributions from people.
People invent and utilize technology. They gather, analyze and disseminate
information. They formulate and implement strategy. Organizations in short create,
communicate and deliver value to customers through the outstanding efforts of
employees. For survival and success organizations, therefore, need to focus attention
on continuous development of human resources. Employee performance appraisal is
a potential mechanism for this growth.

What is Performance Appraisal?

Identification: Means determining what areas of work the manager should be

examining when measuring performance – essentially focusing on performance that
affects organizational success.

Measurement: Entails making managerial judgement of how good or bad employee

performance was.

Management: Appraisal should be more than a post-mortem examination of past

events, criticizing or praising workers for their performance in the preceding year.
Instead, it must take a future oriented view of what workers can do realize their
potential.
.
OBJECTIVES OF PERFORMANCE APPRAISAL
 It can serve as a basis for pay raises. Managers need performance appraisal to
identify employees who are performing at or above expected levels. This

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 approach of compensation is at the heart of the idea that raises should be given
on the basis of merits of individual rather than seniority.

 Performance Appraisal can be served as useful basis for Promotion purposes. It

can also useful in demotion or placement purposes. Employee who will show
outcome above expectation, can be promoted.

 Most important use of performance appraisal is determining the training and

developing programs for employees working at any level including
executives.

 Performance Appraisal is a useful tool for getting feedback from employers as

well as employees.

 Personal development is also a purpose of performance appraisal. Performance

appraisal reveal the cause of good and poor performance of employees. Though
discussion with individual manager, a line manager can find the out why they
perform as they do and what steps can be initiated to improve their
performance.

BENEFITS OF APPRAISAL SYSTEEM

Employer perspective [Administrative uses]

 Despite imperfect measurement techniques, individual differences in performances in

performance can make a difference to company performance.

 Documentation of performance appraisal and feedback may be required for legal

defence.
 Appraisal offers a rational basis for constructing a bonus or merit
system.

 Appraisal dimensions and standards can helps people to implement strategic goals and
clarify performance expectations.

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 METHODS OF PERFORMANCE APPRAISAL
 ESSAY METHOD
It is a traditional and judgmental approach under which employee is evaluated and a
descriptive essay is written on him/her. The essay describes in detail about the
strengths, weaknesses, potential, nature, etc.

Essay method helps in collecting a lot of information about the employees as the
evaluators are not confined to appraise the employees in rigidly defined criteria.
The process is unrestricted and flexible, permitting the employers to emphasize on
any issues or traits that they feel relevant.
However, this method is tedious and difficult to manage as it demands more
description than other methods of appraisal. The reports being descriptive in nature,
it is difficult to compare and contrast them or withdraw any conclusion. Besides, the
evaluator must have good writing skills, or else the whole process is distorted.

 CONFIDENTIAL REPORT
Confidential report is the method of evaluating employee’s performance and taking
necessary actions without giving any feedback to the employees. Confidential report
should only be viewed by authorized personnel. Therefore, it is not send openly but
in sealed envelope. Generally, such method of performance appraisal is conducted
yearly and employees are appraised on the following traits:

• Attendance
• Team work
• Dependability
• Leadership
• Behavior with superior, colleagues and junior workers
• Discipline
• Integrity and honesty
• Quality and quantity of output, etc.

Confidential report usually highlights the strengths and weaknesses of the

employees. Despite the fact, it is used only in government organizations and not in
other forms of organization as it does not provide any feedback to the employees.
Employees are deprived of information such as how is he evaluated, why his ratings
have fallen, why he is underrated, what mistakes are to rectify, how to improve his
performance, etc. Employees have to directly face the consequence (either positive
or negative) of the appraisal.

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  CRITICAL INCIDENT METHOD
Generally, all employees perform alike during normal situations but there are very
few who can maintain their performance during unfavorable time as well. Critical
incident method is used to evaluate the ability of employees to work during such
situation.

Under this method, the rater keeps record of effective as well as ineffective
behaviors of individual employee at the workplace.Such appraisal is conducted
periodically. And at the end of every assessment, the HR manager or some experts
evaluate the behavior and score them, depending upon which the best scoring
employees and poor scoring employees are identified.
An example of effective behavior: A customer angrily stormed into the shop,
complaining that the product he ordered was damaged. The sales executive patiently
listened to the complaint and promptly replaced it, apologizing for the customer’s
inconvenience.

An example of ineffective behavior: The sales clerk went on a leave during the festive
season, during which 80% of the sales happened. He provided no logical reason for
the leave and stopped responding to the phone calls.

Maintaining logs of employee’s critical incident behavior helps in preparing

checklist too. The group of experts evaluates the behaviors of employees
collectively and they prepare checklist, whenever necessary.Critical incident method
evaluates job performance of an employee, rather than his personality. However, this
method has some drawbacks. They are:

• Ineffective behavior or negative response of employees is easily noticed than

positive ones.
• It is time consuming.
• It requires very close supervision which is disliked by the employees.
• Recording detailed information about every employee is problematic.
• Raters may forget to mention any important incidents.

 CHECKLIST
Checklist method is another of the easiest methods of appraising employee’s
performance.
Under this method, a checklist is prepared by the HR manager and is forwarded to
the rater. The checklist may include list of questions (depicting behavior and job

17
 performance of employee) and the rater has to answer them in just ‘YES’ or ‘NO’
form.

The rater analyzes the question and the employee, and based on his views, he
answers them. Such questions also carry some scores (equal or different), depending
upon the nature or importance, which is totaled at the end of the procedure by the
HR manager.
This method is helpful not only in evaluating employee’s job performance but also
in evaluating degree of uniformity of the rater by giving him two similar questions
in different manner. In the given figure, question no. 3 and 6 are differently asked
same questions.

 FORCED DISTRIBUTION METHOD

Employers or raters are found to have tendency to rate their employees near average
or above average performing categories. In around late 90s, Tiffen introduced a new
method of performance appraisal call forced distribution, in an attempt to eliminate
the flaws of the raters.
Under this method, raters are forced to divide his employees evenly into certain
categories which vary from organization to organization. The categories can be poor,

18
average, good and excellent or percentile based like 10% poor, 40% fairly good,
40% good and 10% excellent.

This method is widely applied and has been considered effective in service-driven
companies. However, the method also has some drawbacks. They are:

• It creates false competition between employees.

• All employees might not fit neatly into a category, leading to their placement
in such a category that does not reflect their true image.
• Raters may end up placing more visible employees in superior categories and
less visible ones in poor category, irrespective of their job performance.

 FORCED CHOICE METHOD

Forced choice method of performance appraisal was introduced by J.P. Guilford. It
is one of the most systematic and reliable approach to evaluate employees
accurately.

Under this approach, the HR manager, at first, prepares a set of positive as well as
negative statements. The statements are then forwarded to the rater, following which
the rater indicates which of the given statements suits the employee. Once the rater
finishes evaluating all employees, the report is sent to the HR manager for final
assessment.

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Some examples of positive and negative statements are

Positive statements

• Communicates well with superiors.

• Plays active role in meetings and other office events.

Negative statements

• Consistently over-promises and under-delivers.

• Isn’t punctual, often comes late to the office.
• Each of such statements, both positive as well as negative, carries certain score
set by the HR manager, which is not even revealed to the rater. It makes the
process more objective. The scores are at last summed up and conclusion is
withdrawn. The
employees with high scores are ranked at the top while least scoring employees
are ranked at the bottom.
• Some critics have, however, noted that this method is time consuming and it is
very challenging to construct pertinent evaluative statements

 GRAPHIC RATING SCALE

Graphic rating scale is one of the oldest and commonly used methods of
performance appraisal. Under this approach, the employees are evaluated on the
basis of various job performance criterion, such that each criterion is categorically
divided into poor, fairly poor, fairly good, good and excellent. Also, these criterion
carry certain score weight. The rater ticks the category that best describes the
employee and finally the score is totaled.

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 Graphic rating scale is an easy and simple method of performance appraisal as it
does not require any writing skills. However, the rater’s capricious mood may
result in ineffective evaluation.

 FIELD REVIEW METHOD

Field review method of performance appraisal is conducted by the rater who does
not belong
to the employees’ department. The rater is someone from the corporate, especially
from HR department.
Use of this technique to evaluate employees’ performance is helpful in completely
eliminating issues that arise due to rater’s biasness.
However, this method is not widely used because of the drawbacks. They are

• The rater is not familiar with employees, making it impossible for him to
observe their actual behavior.
• The rater might feel aggrieved in cases when employees try to clarify any
matter.

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  MANAGEMENT BY OBJECTIVE (MBO)
Management by objectives (MBO) is a modern and systematic method of appraising
employee’s performance which was jointly founded by some experts of management
science like Drucker, McGregor and Odiorne.

Managers of present generation are aware of the fact that results of traditional
methods of performance appraisal were majorly based on the perspective or opinion
of the raters. They have realized that it is essential to know what achievement from
an employee’s point of view is.
MBO is employer-employee driven approach of performance appraisal which
involves superior and subordinates in setting goals. The employees work upon
achieving their set goals and employers keep a record of how close they are to
accomplishment of the goals. This way, employees become clear about which path
to walk on to get the goals, subsequently increasing and improving his performance
level.

MBO, at this point, does not only work as a tool for evaluating performance but also
as a motivation factor which allows the company to extract maximum output from
available human resource, permitting employees adequate space for self-
development and growth.

 BEHAVIOURALLY ANCHORED RATING SCALE (BARS)

Behaviorally anchored rating scales (BARS) is the combination of critical incident
and rating scale methods of performance appraisal. Under this method, the scale
points are defined by critical (effective or ineffective) behaviors of the employee.

BARS usually consists of scale ranging from 5 to 9 points, each representing

continuum of statements that describes behavior of employees ranging from
unacceptable to most effective.

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A BARS can be developed in following steps.

1. Collecting samples of effective and ineffective job behavior from the experts
by analyzing the critical incident method
2. Converting these samples into performance dimension
3. Relocating the performance dimension (from unacceptable to outstanding)
4. Rating the performance dimension accordingly, starting from 1
5. Finally, using the scale anchor to evaluate employee’s performance

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  COST ACCOUNTING (HR ACCOUNTING) METHOD
Cost accounting method of performance appraisal is the process of evaluating
monetary benefits yield to the organization from the job performance of an
employee. In other words, this method is used to analyze the cost of keeping the
employee and the benefits the company derives from his/her presence and / or
absence.

There are some major points which are considered while evaluating employee
under this approach. They are:
• Average value of unit cost of production of goods and services.
• Quality of the goods and services produced.
• Overhead cost incurred (lighting, electricity, equipment, etc.).
• Extra-expenses (accident, error, damage, wear and tear of tools and
equipment).
• Relationship with customers and clients.
• Cost of the time spent by the supervisor in appraising the employee.

 PAIRED COMPARISON METHOD

Under this method, the pairs of employees of same job post or level are formed,
following which they are evaluated on the basis of performance of each other.
Subjects like skills, experience, team player, behavior, etc. are evaluated by the
raters and picks the best performing employee.

To be precise, the raters are provided with a bunch of slips, each containing a pair of
names of employees. The employee whom raters consider to be the best is given a
tick mark and the process is repeated for all pairs. At the end, the employee who
succeeds to get the most tick is considered to be the best while the employee getting
least ticks is comparatively considered poor.

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 RANKING METHOD
Ranking is one of the simplest methods of performance appraisal. Under this
method, employees are ranked from the best to the worst according to their
performance level.

The best performing employees are ranked #1 and the least performing one is ranked
the last.
Based on these rankings, the companies may take any actions, from promotion to
termination.

Although ranking method of performance appraisal is considered to be an easier

approach, it becomes problematic and full of issues when conducted in a large scale.
Also, this method of performance appraisal is criticized because it is unsystematic
and results are often drawn on the basis of snap judgment.

 RATING METHOD
Rating is a commonly used traditional method of performance appraisal. Under this
approach, an employee is numerically rated from 1 to 10 on various job performance
criterion like attendance, attitude, performance, output, sincerity, dependability,
initiative, etc.The employee may be rated by his/her superiors, colleagues or even

25
customers, depending upon the nature of job. Scores of all criterion are finally
calculated, and results are withdrawn.

Rating method of performance appraisal is commonly used because it is economic

in nature and raters do not require to have high skills to use it. Also, it is applicable
in almost all types of job and even with large workforce.

There is, however, a drawback of this method, i.e. employees might be incorrectly
rated due to rater’s biasness.

 GROUP APPRAISAL METHOD

In this method, an employee is appraised by a group of appraisers. This group
consists of the immediate supervisors of the employee, other supervisor who have
close contact to employee’s work.

 ASSESSMENT CENTRE
This method of appraising was first applied in Germany Army in 1930. It is a system
or organization, where assessment of several individuals is done by various experts

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 using various techniques. These include the methods discussed before in addition to
in-basket, role playing, case studies, simulation exercises, structured insight,
transactional a nalysis, etc.

 360-DEGREE APPRAISAL
360-degree appraisal is a modern technique to evaluate employee’s performance
which was developed in the early 90s in the U.S.A.

Under this method, an employee’s job performance is appraised by the help of the
factors that are present around him at the workplace. Such factors may be superiors,
colleagues, subordinates and even clients, customer or spouse.

An evaluator asks various questions to these factors and collects their feedback.
The gathered information is then assembled through computerized system and
individual reports are prepared. Such reports are finally distributed to the employees,
following which they can communicate with their appraiser in regards with their
opinion about how to improve his performance.
360-degree method is considered to be the most effective way of appraising
employee’s performance as information and feedback is collected from all around.

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 CHAPTER – 3
INTRODUCTION TO
PROJECT

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ABSTRACT
A major concern of every organization should be to contribute positively towards the achievement
of its objective. Organizational effectiveness is often equated with managerial efficiency. A manager
can ensure organizational effectiveness only by guaranteeing the full utilization of human resource
available through individual employees under his guidance. Hence, it is always required for a
manager to monitor and measure the performance of the employees.

Moreover, since the organization exists to achieve the goals, the degree of success that individual
employees have in reaching this individual goal is important in determining organizational
effectiveness. The assessment of how successful employees have been at meeting their individual
goal to come a critical part of HRM. This leads to concept of performance appraisal.

The objective is to know how effective is the execution of appraisal system in AIRPORTS
Authority Of India. The aim of most appraisal program to encourage the employees to set his own
objective for next time period following the review of his past performance. It enables the
management to make effective decisions to modify earlier decisions based on the evaluation of
existing plans, information system, job analysis, and internal and external environment factors
influencing employee performance.

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 INTRODUCTION
PERFORMANCE APPRAISAL IN AAI

AAI has its own set-up module which is mainly based on Knowledge
Performance Appraisal(KPA). Knowledge performance appraisal
involves assessing an individual's or a team's competencies, expertise, and
learning within a specific domain or field. It focuses on evaluating the
application of knowledge, skills, and abilities to accomplish tasks, solve
problems, and achieve objectives.

APPRAISAL SYSTEM –

Components of Knowledge Performance Appraisal:

❖ Skills and Competencies Assessment
1. Technical Skills: Evaluate specific technical skills required for the job role.
2. Soft Skills: Assess communication, problem-solving, leadership, and other
interpersonal skills.
3. Adaptability: Measure the ability to learn and adapt to new technologies or
methodologies.

❖ Knowledge Base Evaluation

1. Depth of Knowledge: Assess the depth and breadth of an individual’s

knowledge in their field.
2. Continuous Learning: Evaluate commitment to ongoing learning and
professional development.
3. Innovation and Creativity: Measure the ability to generate new ideas and
innovative solutions.
❖ Problem-Solving and Decision-Making

1. Analytical Thinking: Evaluate the ability to analyze complex situations and

make informed decisions.
2. Problem-Solving Skills: Assess the effectiveness in addressing challenges and
finding solutions.
❖ Knowledge Sharing and Collaboration

1. Knowledge Transfer: Assess how effectively an individual shares knowledge

within the team or organization.

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 2. Collaboration Skills: Evaluate the ability to work in a team, contribute ideas,
and collaborate for collective success.

Methods used in Knowledge Performance Appraisal:

1. Self-Assessment

• Encourage individuals to assess their own knowledge, skills, and areas for
improvement.

2. 360-Degree Feedback

• Gather feedback from peers, managers, subordinates, and other stakeholders to

provide a holistic view of an individual’s knowledge contributions.

3. Performance Metrics

• Develop specific metrics related to knowledge-based tasks, such as the number

of innovative ideas implemented, successful problem-solving instances, or
knowledge-sharing initiatives.

Importance and Benefits:

1. Identifying Strengths and Gaps: Helps identify areas where individuals excel and
areas needing improvement in knowledge-related tasks.

2. Facilitating Professional Development: Provides insights for tailored training and

development programs to enhance knowledge and skills.

3. Employee Engagement and Retention: Recognizing and valuing intellectual

contributions can boost morale and increase employee satisfaction.

4. Strategic Alignment: Ensures that the organization’s knowledge assets are in line
with its strategic objectives.

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A robust knowledge performance appraisal process not only evaluates an individual's
current contributions but also helps in fostering a culture of continuous learning and
knowledge sharing within an organization. It encourages the development of
intellectual capital, which is vital for an organization's long-term success and
innovation.

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 METHODS USED AT AAI, Gaya

The Airports Authority of India (AAI) employs a Knowledge Performance Appraisal

System that allocates 70% of the evaluation to responses, knowledge, skills,
and work performance, while the remaining 30% is based on soft Skills. The
appraisal results are communicated to employees through their respective portals,
and their satisfaction with the evaluation determines the disbursement of
performance-related pay . This system also influences promotions and identifies
training needs for employees not performing at their full potential.

OBJECTIVES

• Evaluate the Effectiveness of the Current Appraisal System:

Assess the impact of the existing knowledge performance appraisal system on

employee motivation, engagement, and overall organizational performance.

• Identify Areas of Improvement:

Analyze the feedback received from employees on the appraisal process to

identify areas for enhancement.
• Propose Solutions for Drawbacks:

Develop strategies to address any identified drawbacks in the current system.

• Enhance the Training and Development Framework:

Strengthen the training and development initiatives for employees who require
improvement in performance.

METHODOLOGY
• Survey and Data Collection:

✓ Conduct surveys to gather feedback from employees regarding their experience with
the knowledge performance appraisal system.
✓ Analyze historical performance data to identify trends and patterns.

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 • Employee Interviews:

✓ Conduct interviews with a sample of employees to gain qualitative insights into their
perceptions and experiences with the appraisal process.

• Benchmarking:

✓ Compare AAI's knowledge performance appraisal system with industry best practices
to identify areas for improvement.

Implementation
• Enhance Communication Channels:

✓ Improve the clarity and transparency of communication during the appraisal process.
• Continuous Feedback Mechanism:

✓ Establish a continuous feedback loop for employees to express concerns or

suggestions throughout the appraisal period.

• Refinement of Soft Skills Evaluation:

✓ Review and refine the criteria used for assessing soft qualities to ensure fairness and
accuracy.
• Empowerment through Development Programs:

✓ Strengthen training and development programs to address identified skill gaps and
enhance overall employee performance.

Drawbacks and Solutions

34
The proposed project aims to enhance the current knowledge performance appraisal system
at AAI, ensuring a fair and effective evaluation process. The improvements seek to boost
employee satisfaction, motivation, and contribute to the overall success of the organization.

• Drawback: Lack of Clarity in Soft Skills Evaluation

Solution: Conduct training sessions for managers involved in the

appraisal process to ensure a standardized and clear evaluation of
soft skills.
• Drawback: Limited Employee Involvement in Feedback Process

Solution: Establish regular town hall meetings or feedback sessions to

encourage open communication and address concerns promptly.
• Drawback: Inconsistent Training and Development Framework

Solution: Implement a structured training plan based on individual

employee needs identified during the appraisal process .

. Project Evaluation
Conduct periodic reviews to assess the impact of implemented changes
and make adjustments as needed.

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 Conclusion:

The current Knowledge Performance Appraisal system in AAI emphasizes fairness and
transparency, encouraging employee involvement in the evaluation process. However,
there may be some limitations, such as potential biases or subjectivity. To enhance the
system, introducing more diverse evaluation criteria and refining feedback
mechanisms could be beneficial. Overall, the system serves as a robust framework for
employee development but requires continuous refinement to ensure its effectiveness.

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 Results and Discussion

Summary of the results of the analysis, interpretation of the results, decisions on objectives
and discussion of the findings are presented in this chapter.

The main objective of this study is to understand how effective the current performance
appraisal system is functioning atAAI, Cochin. It also aimed at describing the perception of
employees towards the performance appraisal system of AAI. The target population of the
study are workers at AAI, Cochin including both males and females, among which the
information regarding socio-demographic details, performance appraisal details was sought.
For the present study, a well developed questionnaire was used. After data collection, the
data were entered and coded subsequently, the data collected were subjected to analysis.
The results of the study have been discussed in this chapter.

Data Analysis

1. In your opinion, the performance appraisal method in your organization is -

Table showing the response of the respondents

Sl. No. Response No. of Percentage

Respondents

1 Easy 4 20%

2 Complicated 1 5%

3 Efficient 15 75%

4 Inefficient 0 0%

5 Undecided 0 0%

Total 20

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Interpretation
● 20% of the respondents rated that the performance appraisal method of their

organization is easy.

● 5% of the respondents rated that the performance appraisal method of their

organization is complicated.

● 75% of the respondents rated that the performance appraisal method of their

organization is efficient.

● 0% of the respondents rated that the performance appraisal method of their

organization is inefficient.

● 0% of the respondents rated that they are undecided on this question.

2. The Performance appraisal helps employees achieve meaningful goals in your organization.
Table showing the response of the respondents

Sl. No. Response No. of Percentag

Respondents e

1 Strongly agree 5 25%

2 Agree 14 70%

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3 Undecided 0 0%

4 Disagree 1 5%

5 Strongly 0 0%
disagree

Total 20

Interpretation
● 25% of the respondents strongly agreed that the performance appraisal system helps

to achieve meaningful goals.

● 70% of the respondents agreed that the performance appraisal system helps to achieve

meaningful goals.

● 0% of the respondents are undecided that the performance appraisal system helps to

achieve meaningful goals.

● 5% of the respondents disagreed that the performance appraisal system helps to

achieve meaningful goals.

● 0% of the respondents strongly disagreed that the performance appraisal system helps

to achieve meaningful goals

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3. Performance appraisal method improves your motivation and job satisfaction
Table showing the response of the respondents
Sl. No. Response No. of Percentag
Respondents e
1 Strongly agree 4 20%
2 Agree 16 80%
3 Undecided 0 0
4 Disagree 0 0
5 Strongly 0 0
disagree
Total 20

Interpretation
● 20% of the respondents strongly agreed that the Performance appraisal system

improves their motivation & job satisfaction.

● 80% of the respondents agreed that the Performance appraisal system improves their

motivation & job satisfaction.

● 0% of the respondents undecided that the Performance appraisal system improves

their motivation & job satisfaction.

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 ● 0% of the respondents disagreed that the Performance appraisal system improves

their motivation & job satisfaction.

● 0% of the respondents strongly disagreed that the Performance appraisal system

improves their motivation & job satisfaction.

4. During the performance appraisal process, your interpersonal skills are improved.
Table showing the response of the respondents

Sl. No. Response No. of Percentag

Respondents e

1 Strongly agree 4 20%

2 Agree 12 60%

3 Undecided 3 15%

4 Disagree 1 5%

5 Strongly 0 0%
disagree

Total 20

Interpretation

41
 ● 20% of the respondents strongly agreed that the performance appraisal system

improves their interpersonal skills.

● 60% of the respondents agreed that the performance appraisal system improves their

interpersonal skills.

● 15% of the respondents undecided that the performance appraisal system improves

their interpersonal skills.

● 5% of the respondents disagreed that the performance appraisal system improves their

interpersonal skills.

● 0% of respondents strongly disagreed that the performance appraisal system improves

their interpersonal skills.

5. After the process of performance appraisal, your performance is improved.

Table showing the response of the respondents

Sl. No. Response No. of Percentag

Respondents e

1 Strongly agree 4 20%

2 Agree 14 70%

3 Undecided 1 5%

4 Disagree 1 5%

5 Strongly 0 0%
disagree

Total 20 100%

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Interpretation
● 20% of the respondents strongly agreed that after the process of performance

appraisal, their performance is improved.

● 70% of the respondents agreed that after the process of performance appraisal, their

performance is improved.

● 5% of the respondents undecided that after the process of performance appraisal, their

performance is improved.

● 5% of the respondents disagreed that after the process of performance appraisal, their

performance is improved.

● 0% of the respondents strongly disagreed that after the process of performance

appraisal, their performance is improved.

6. The performance appraisal method in your organization set targets for future performance.
Table showing the response of the respondents

Sl. No. Response No. of Percentag

43
 Respondents e

1 Strongly agree 6 30%

2 Agree 12 60%

3 Undecided 1 5%

4 Disagree 1 5%

5 Strongly 0%
disagree

Total 20 100%

Interpretation
● 30 % of the respondents strongly agreed that the performance appraisal method set

targets for their future performance.

● 60 % of the respondents agreed that the performance appraisal method set targets for

their future performance.

● 5 % of the respondents undecided that the performance appraisal method set targets

for their future performance.

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 ● 5 % of the respondents disagreed that the performance appraisal method set targets

for their future performance.

● 0% of the respondents strongly disagreed that the performance appraisal method set

targets for their future performance.

7. Performance appraisal system in your organization gives your accurate performance

review.
Table showing the response of the respondents

Sl. No. Response No. of Percentag

Respondents e

1 Strongly agree 3 15%

2 Agree 14 70%

3 Undecided 2 10%

4 Disagree 1 5%

5 Strongly 0 0%
disagree

Total 20 100%

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Interpretation
● 15 % of the respondents strongly agreed that the performance appraisal system gives

their accurate performance review.

● 70 % of the respondents agreed that the performance appraisal system gives their

accurate performance review.

● 10 % of the respondents undecided that the performance appraisal system gives their

accurate performance review.

● 5 % of the respondents agreed that the performance appraisal system gives their

accurate performance review.

● 0% of the respondents strongly disagreed that the performance appraisal system gives

their accurate performance review.

8. The performance appraisal method in your organization helps you to identify your
strengths and weaknesses
Table showing the response of the respondents

Sl. No. Response No. of Percentag

Respondents e

1 Strongly agree 4 20%

2 Agree 12 60%

3 Undecided 2 10%

4 Disagree 2 10%

5 Strongly 0 0%
disagree

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Total 20 100%

Interpretation
● 20% of the respondents strongly agreed that the performance appraisal method helps

them to identify their strengths and weaknesses.

● 60% of the respondents agreed that the performance appraisal method helps them to

identify their strengths and weaknesses.

● 10% of the respondent’s undecided that the performance appraisal method helps

them to identify their strengths and weaknesses.

● 10% of the respondents disagreed that the performance appraisal method helps them

to identify their strengths and weaknesses.

● 0% of the respondents strongly disagreed that the performance appraisal method

helps them to identify their strengths and weaknesses.

9. In your opinion, performance appraisal helps to increase organization’s overall productivity

and efficiency.
Table showing the response of the respondents

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Sl. No. Response No. of Percentag
Respondents e

1 Strongly agree 7 35%

2 Agree 13 65%

3 Undecided 0 0%

4 Disagree 0 0%

5 Strongly 0 0%
disagree

Total 20 100%

Interpretation
● 35% of the respondents strongly agreed that the performance appraisal system helps

to increase organization’s overall productivity & efficiency.

● 65% of the respondents agreed that the performance appraisal system helps to

increase organization’s overall productivity & efficiency.

● 0% of the respondents are undecided whether the performance appraisal system helps

to increase organization’s overall productivity & efficiency.

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 ● 0% of the respondents disagreed that the performance appraisal system helps to

increase organization’s overall productivity & efficiency.

● 0% of the respondent strongly disagreed that the performance appraisal system helps

to increase organization’s overall productivity & efficiency.

10. In your opinion, the performance appraisal method in your organization is satisfactory.
Table showing the response of the respondents

Sl. No. Response No. of Percentag

Respondents e

1 Strongly agree 2 10%

2 Agree 16 80%

3 Undecided 0 0%

4 Disagree 2 10%

5 Strongly 0 0%
disagree

Total 20 100%

Interpretation

49
● 10% of the respondents strongly agreed that the existing performance appraisal

method in their organization is satisfactory.

● 80% of the respondents agreed that the existing performance appraisal method in their

organization is satisfactory.

● 0% of the respondents are undecided that the existing performance appraisal method

in their organization is satisfactory.

● 10% of the respondents disagreed that the existing performance appraisal method in

their organization is satisfactory. 0% of the respondents strongly disagreed that the

existing performance appraisal method in their organization is satisfactory.

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