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INTRODUCTION TO THE PROBLEM

Appraisal is a fact of life for many people. It is a continuous function and not merely
an issue of formal reports at particular point of time. In the business world, investment is
made in machinery, equipment and services. Quite naturally, time, money is spent
ensuring that they provide what is required. The performance is constantly appraised
against the result expected.

Evaluation deals with achievement of goals. The organization to get competitive

edge over its rivals on a sustainable basis, five things are essential; increased
productivity, improved quality, innovation in the market, a deep understanding of
customer needs and delivery of world class service. The one factor that could provide all
these capabilities is “Knowledge” and human beings are the drivers of the knowledge
judgment.

Management approach of an Organization has to be an effective imperative to set

paradigms for managing an enterprise and its people so that the human resources
functions forms an integral part of corporate policy.

o Acquire or sharpen capabilities required to perform various functions

associated with their present of expected future roles.
o Develop the general capabilities as individuals exploit their potentials for
their own and organizational development purposes.
o Develop an organizational culture.

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RESEARCH METHODOLOGY
OBJECTIVES OF THE STUDY

1. To find out the employees perception about the concept of Performance

Appraisal.
2. To find out whether the employees will be satisfied with the Performance
Appraisal system being implemented in the organization.
3. To suggest SAKSHI to implement performance appraisal system

more effectively.

SCOPE OF THE STUDY

The study was intended to obtain information about:

• The Performance standards of an employee will be known.

• The quality of work in the organization since the quality of work depends on the
performance of the employee will be known.
• Perception among employees regarding performance appraisal

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DATACOLLECTION

Both primary and secondary data were collected.

PRIMARY DATA:

Primary data is collected through structured questionnaire.

SECONDARY DATA:

Secondary data was collected through appraisal forms.

SAMPLING TECHNIQUE

The technique used was random sampling.

SAMPLE SIZE:

Sample size chosen by the researcher was 35 employees.

LIMITATIONS OF THE STUDY

The major limitation of the study has been unavailability of sufficient time. Performance
Appraisal as such as a very vast subject and requires a lot of Time in order to be able to
go through each and every aspect of Performance Appraisal.

1. The sample size is 35 only, which may not be sufficient to give the accurate
results.
2. The opinion of the respondents in SAKSHI is only considered for the project
study.

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REVIEW OF LITERATURE

The history of Performance Appraisal is quite brief. It’s in the early 20th century can be
traced to Taylor’s pioneering Time and Motion studies. As a distinct and formal
management procedure used in the evaluation of work performance, appraisal really dates
from the time of Second World War – not more than 60 years ago. Yet in a broader sense,
the practice of appraisal is a very ancient art.

There is, says DULEWICZ (1989),a basic human tendency to make judgments about
those one is working with, as well as about oneself.” Appraisal, it seems, is both
inevitable and universal. In the absence of a carefully structured system of appraisal,
people will tend to judge the work performance of others, including subordinates,
naturally, informally and arbitrarily. The human inclination to judge can create serious
motivational, ethical and legal problems in the workplace. Without a structured appraisal
system, there is little chance of ensuring that the judgments made will be lawful, fair,
defensible and accurate.

Performance appraisal systems began as simple methods of income justification. That

is, appraisal was used to decide whether or not the salary or wage of an individual
employee was justified. The process was firmly linked to material outcomes. If an
employee's performance was found to be less than ideal, a cut in pay would follow. On
the other hand, if their performance was better than the supervisor expected, a pay rise
was in order.

Sometimes this basic system succeeded in getting the results that were intended; but more
often than not, it failed. Pay rates were important, yes; but they were not the only element
that had an impact on employee performance. It was found that other issues, such as
morale and self-esteem, could also have a major influence. As a result, the traditional
emphasis on reward outcomes was progressively rejected.

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In the 1950s in the United States, the potential usefulness of appraisal as tool for
motivation and development was gradually recognized. The general model of
performance appraisal, as it is known today, began from that time.

MODERNAPPRAISAL:

Performance appraisal may be defined as a structured formal interaction between a

subordinate and supervisor, that usually takes the form of a periodic interview (annual or
semi-annual), in which the work performance of the subordinate is examined and
discussed, with a view to identifying weaknesses and strengths as well as opportunities
for improvement and skills development.

In many organizations - but not all - appraisal results are used, either directly or
indirectly, to help determine reward outcomes. That is, the appraisal results are used to
identify the better performing employees who should get the majority of available merit
pay increases, bonuses, and promotions.
By the same token, appraisal results are used to identify the poorer performers who may
require some form of counseling, or in extreme cases, demotion, dismissal or decreases in
pay. (Organizations need to be aware of laws in their country that might restrict their
capacity to dismiss employees or decrease pay.)

Controversy:

Few issues in management stir up more controversy than performance appraisal.

There are many reputable sources - researchers, management commentators, and
psychometricians - who have expressed doubts about the validity and reliability of the
performance appraisal process. Some have even suggested that the process is so
inherently flawed that it may be impossible to perfect it. At the other extreme, there are
many strong advocates of performance appraisal. Some view it as potentially "... the most
crucial aspect of organizational life" - LAWRIE (1990)

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The Link to Rewards:

Research (BANNISTOR & BALKIN, 1990) has reported that appraisees seem to
have greater acceptance of the appraisal process, and feel more satisfied with it, when the
process is directly linked to rewards. Such findings are a serious challenge to those who
feel that appraisal results and reward outcomes must be strictly isolated from each other.

There is also a group who argues that the evaluation of employees for reward
purposes, and frank communication with them about their performance, are part of the
basic responsibilities of management. The practice of not discussing reward issues while
appraising performance is, say critics, based on inconsistent and muddled ideas
motivation.

INTRODUCTION

Appraisal is the evaluation of worth, quality or merit. In the organization

context, performance appraisal is a systematic evaluation of personnel by
superiors or others familiar with their performance. Performance appraisal is also
described as merit rating in which one individual is ranked as better or worse in
the comparison to others. The basic purpose in this merit ranking is to ascertain an
employee’s eligibility for promotion.

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EVOLUTION

Formal appraisal of an individual’s performance began in the Weir dynasty

(A.D.221-265) in china, where an imperial rater appraised the performance of
members of the official family. In 1883, the New York City civil service in USA
introduced a formal appraisal programme shortly before World War I.

The history of performance appraisal roots in the early 20th century can be
traced to Taylor's pioneering Time and Motion studies. As a distinct and formal
management procedure used in the evaluation of work performance, appraisal
really dates from the time of the Second World War.

DEFINITION

“Performance Appraisal is the process of determining from how well someone

is performing in his or her job it involves measuring performance and comparing
it with an established standard”.

-JOHN PEARCE AND RICHARD ROBINSON

A FORMAL DEFINITION OF PERFORMANCE APPRAISAL

“The performance appraisal is the process of evaluating the performance and

qualification of the employees in terms of the requirements of the job for which
he is employed, for the purpose of administration including placement, selection
for promotion, providing financial rewards and other action which require
differential treatment among the members of group as distinguished from actions
affecting all members equally”.

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MEANING OF PERFORMANCE APPRAISAL

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

the work spot, normally including both the quantitative and qualitative aspects of
job performance. Performance here refers to the degree of accomplishment of the
tasks that make up an individuals job. It indicates how will an individuals is
fulfilling the job demands. Often the term is confused with effort, but
performance is always measured in terms of results and efforts.

PURPOSES OF PERFORMANCE APPRAISAL

Performance appraisal aims at attaining the different purposes. They are:

 To create and maintain a satisfactory level of performance.

 To contribute to the employee growth and development through
training, self and management development programmes.
 To help the superiors to have a proper understanding about their
subordinates.
 To guide the job changes with the help to continuous ranking.
 To facilitate fair and equitable compensation based on
performance.
 To provide information for making decisions regarding lay off,
retrenchment etc.

SCOPE OF PERFORMANCE APPRAISAL

The world today is a world of revolutionary changes. We are on the edge of

21st century. It gives us a chance to scan the 20th century and foresee the 21st.In the
next few years the world will be witnessing a mega transformation of global
economy. India has also been affected by this change. New challenges in various
fields are being accepted.

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Innovation in the true sense is to be perceived and understood. In the 19th

century it was the industrial revolution, which promised India a better future, but
now it is the role of the information technology, which decides the future.

The stride in industrialization in the 20th century has been a remarkable future
with various changes in the working and managing styles of the industries. The
advent of the information technology along with the rapid industrialization in
India demands a highly motivated, educated, and skilled and goal oriented work
force. Performance has become the watchword in today’s industrial scene.

OBJECTIVES OF PERFORMANCE APPRAISAL

The objective of performance appraisal scheme must relate directly to the

business and growth needs of units of organization as a whole.

The following are some impotent objectives of an appraisal scheme:

1. Providing information for succession and resource

planning.
2. Providing a base for improved commutation between boss
and subordinates.
3. Identifying and recording performance weaknesses.
4. Providing a basis for analysis of performance and
identifying the required standards and improvement.
5. Identifying potential.
6. Mutual feedback between boss and subordinate.

WHO WILL APPRAISE

SUPERVISORS:

Supervisors include superiors of the employee, other superiors having

knowledge about the work of the employee and department head or manager.

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General practice is that immediate superiors appraise the performance which in

turn is reviewed by the departmental head / manager. This is because supervisors
are responsible for managing their subordinates and they have the opportunity to
observe, direct and control the subordinate continuously. Moreover, they are
accountable for the successful performance of their subordinates.

PEERS:

Peer appraisal may be responsible if the work group is stable over a

reasonably long period of time and performs tasks that require interaction.
However, little research has been conducted to determine how peers establish
standards for evaluating others or the overall effect of peer appraisal on the
group’s attitude.

SUBORBINATES:

The concept of having superiors rated by subordinates is being used in most

organizations today, especially in developed countries. Such a novel method can
be useful in other organizational settings too provided the relationships between
and subordinates are cordial. Subordinates’ ratings in such cases can be quite
useful in identifying competent superiors.

SELF APPRAISAL:

If individuals understand the objectives they are expected to achieve and the
standards by which they are to be evaluated, they are to a great extent in the best
position to appraise their own performance. Also, since employee development
means self development, employees who appraise their own performance may
become highly motivated.
WHEN TO APPRAISE

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Informal appraisals are conducted whenever the supervisor or personnel

managers feel it necessary. However, systematic appraisals are conducted on a
regular basis, say for example, every 6 months or annually.

METHODS OF PERFORMANCE APPRAISAL

TRADITIONAL METHODS

Graphic Rating Scales:-

Graphic Rating Scales compare individual performances to an absolute

standard. In this method, judgments about performance are recorded on a scale.
This is the oldest and widely used technique. This method is also known as linear
rating or simple rating scale. The appraisers are supplied with printed forms, one
for each employee. These forms contain a number of objectives, behavior and trait
based qualities and characters to be rated like quality and volume of work, job
knowledge, dependability, initiative, attitude, etc., In the case of workers and
analytical ability, creative ability, initiative, leadership qualities, emotional
stability in the case of managerial personnel.

These forms contain rating of scale. Rating scales are of two types, viz.,
continuous rating scale and discontinuous rating scale. In continuous order like 0,
1, 2, 3, 4&5 and in discontinuous scale the appraiser assigns the points to each
degree. The points given by the rater know performances regarding each character
are added up to find out the overall performance. Employees are ranked basis of
total points assigned to each one of them.

One reason for the popularity of the rating scales is its simplicity, which
permits many employees to be quickly evaluated. Such scales have relatively low
design cost and high incase of administration. They can easily pin point
significant dimensions of the job. The major drawback to these scales is

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subjectivity and low reliability. Another limitation is that the descriptive words
often used in such scales may have different meanings to different raters.

Ranking Method:-

Under this method, the employees are ranked from best to worst on some
characteristics. The rater first finds the employees with the highest performance
and the employees with the lowest performance in that particular job category and
rates the former as the best and latter as the poorest. Then the rater selects the next
highest and next lowest and so on until he rates all the employees in that group.

Ranking can be relatively easy and inexpensive, but its relativity and validity
may be open to doubt it may be affected by rater bias or varying performance
standards. Ranking also means that somebody would also be in the back bench. It
is possible that the low ranked individual in one group will turn out to be
superstar in another group.

One important limitation of the ranking method is that the size of the
difference between individuals is not well defined. For instance, there may be
little difference in performance between individual’s ranked second and third, but
big difference between those ranked third and fourth.

Column I (Best)

 . . . . . . . . . . . . . . . .
 . . . . . . . . . . . . . . . .
 . . . . . . . . . . . . . . . .
 . . . . . . . . . . . . . . . .

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 . . . . . . . . . . . . . . . .
 . . . . . . . . . . . . . . . .
 . . . . . . . . . . . . . . . .
 .. . . . . . . . . . . . . . .

Column II (Worst)

1. . . . . . . . . . . . . . . . .
2. . . . . . . . . . . . .
3. . . . . . . . . . . . . . .
4. . . . . . . . . . . . . . .
5. . . . . . . . . . . . . . .
6. . . . . . . . . . . . . . .
7. . . . . . . . . . . . . . .

Tab 2.2

Paired Comparison Method:-

This method is relatively simple. Under this method the appraiser ranks the
employees by comparing one employee with all other employees in the group,
one at a time. This method results in each employee being given a positive
comparison total and a certain percentage of total positive evaluation.

Paired comparison doesn’t force distribution of employees in each

department. For instance, if a department has two outstanding employees and six
average employees and paired comparison is correctly utilized, then those two
employees will get a much higher percentage of positive comparison than the

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other six. Paired comparison method could be employed fairly, easily when the
number of employees is less. The number of comparisons required equals N (N-
1)/2.This means that where the number is fairly large the technique may be time
consuming. Another limitation of this technique is that employees are simply
compared to each other on total performance rather than specific job criteria.

A B C D E

A - A A A A

B - - C D E

C - - - C E

D - - - - E

E - - - - -

Tab 2.3

To compute employee’s positive evaluations:

Number of positive evaluations x 100 = employees % superior evaluation.

Total number of evaluations

Employee A Employee B Employee C Employee D

Employee E

4/4 x100=100% 0/4x100=0% 2/4x100=50% 1/4x100=25%

3/4x100=75%

Forced Distribution method:-

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The rater may rate his employees at the higher or at the lower end of the scale
under the earlier methods. Forced distribution method is developed to prevent the
raters from rating too high or too low. Under this method, the rater after assigning
the points to the performance of each employee has to distribute his ratings in a
pattern to conform to normal frequency distribution.

Fig 2.1

Thus, similar to the ranking technique, forced distribution requires the raters
to spread their employee evaluations in a prescribed distribution. This method
eliminates central tendency and leniency biases. However, in this method
employees are placed in certain ranked categories but not ranked within the
categories. Quite often work groups do not reflect a normal distribution of
individual performance. This method is based on the rather questionable
assumption that all groups of employees will have the same distribution of
excellent, average and poor performers. If one department has all outstanding
employees, the supervisor would find it extremely difficult to decide who should
be placed in the lower categories. Difficulties can also arise when the rater must
explain to the employee why he was placed in one grouping and others were
placed in one grouping and others were placed in higher groupings.

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Checklist Methods:-

The checklist is a rating technique in which the supervisor is given a list of

statements or words asked to check statements representing the characteristics and
performance of each employee. There are three types of checklist methods, viz,
simple checklist, weighted checklist and forced choice method.

 Simple Checklist Method: The checklist consists of large number

of statements concerning employee behavior. The rater checks to
indicate if the behavior of employees is positive or negative to
each statement. Employee performance is rated on the basis of
number of positive checks. The negative checks are not considered
in this method. A difficulty often arises because the statements
may appear to be virtually identical in describing the employee.
The words or statements may have different meanings to different
raters.
 Weighted checklist method: This method involves weighting
different items in the checklist, having a series of statements about
an individual, to indicate that some or more important than others.
The rater is expected to look into the questions relating to the
employees behavior, the attached rating scale and tick those traits
that closely describe the employee behavior. Often the weights are
not given to the supervisors who complete the appraisal process,
but are computed and tabulated by someone else such as a member
of the personnel unit. In this method the performance ratings of the
employee are multiplied by the weights of the statements and the
coefficients are added up. The cumulative co-efficient is the
weighted performance score of the employee. Weighted
performance score is compared with the overall assessment
standards in order to find out the overall performance of the
employee. The weighted checklist, however, is expensive to

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design, since checklist for each different job in the organization

must be produced. This may prove time consuming also in the end.
Though the weighted checklist method is evaluative as well as
developmental, it has the basic problem of the evaluator not
knowing the items which contribute mostly of successful
performance.
 Forced Choice Method: - This method was developed at the close
of World War II. Under this method, a large number of statements
in groups are prepared. Each group consists of four descriptive
statements concerning employee behavior. Two statements are
most descriptive and two are least descriptive of each tetrad.
Sometimes there may be five statements in each group out of
which one would be neutral. The actual weight ages of the
statements are kept secret. The appraiser is asked to select one
statement that mostly describes employee’s behavior out of the two
favorable statements and one statement from the two unfavorable
statements. The items are usually a mixture of positive and
negative statements. The intent is to eliminate or greatly reduce the
rater’s personal bias, specially the tendency to assign all high or
low ratings. The items are designed to discriminate effective from
ineffective workers as well as reflect valuable personal qualities.

Critical Incident Method:-

Employees are rated discontinuously, i.e., once in a year or six months under
the earlier methods. The performance rated may not reflect real and overall
performance as the rater would be serious about appraisal just two or three weeks
before the appraisal. Hence a continuous appraisal method, i.e., critical incident
method has been developed. Under this method, supervisor continuously records
the critical incidents of the employee performance or behavior relating to all
characteristics in a specially designed note book. The supervisor rates the
performance of his subordinates on the basis of notes taken by him.

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Since the critical incident method does not necessarily have to be a separate
rating system, it can be fruitfully employed as documentation of the reasons why
an employee was rated in a certain way.

The critical incident method has the advantage of being objective because the
rater considers the records of performance rather than the subjective points of
opinion, for example, mood, emotional balance, relationship between superior and
subordinate. This certainly helps in reducing bias in the evaluation. However, the
system is not without drawbacks. First, what constitutes a critical incident is not
defined in the same manner by all raters. Next, recording events continually over
a period of time may be resented by the raters.

Essay Or Free Appraisal:-

This method requires the manager to write a short essay describing each
employee’s performance during the rating period. This format emphasizes
evaluation of overall performance, based on strengths/weaknesses of employee
performance rather than specific job dimensions. By asking supervisors to
enumerate specific examples of employee behavior, the essay technique
minimizes supervisory bias and halo effect.

The time involved in writing separate essays about each employee can be
formidable. Essays are not amenable for evaluation and analysis; 50 essays
describing different employee’s performance cannot be tied to merit increases and
promotion possibilities because there is no common standard. Another inherent
limitation of this method is that the evaluators may have unequal skills in writing
the essays. A skillful writer can present a more dramatic case about an employee
than an awkward writer or supervisor. Thus, the quality of the ratings depends,
actually on employee performance, but on the writing ability of the rater.

Group Appraisal:-

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Under this method, an employee is appraised by group of appraisers. This

group consists of the immediate supervisor of the employee, to other supervisors
who have close contact with the employees work, manager or head of the
department and consultants. The head of the department or manager may be the
chairman of the group and the immediate supervisor enlightens other members
about the job characters, demands, standards of performance etc. This method is
widely used for purposes of promotion, demotion and retrenchment appraisal.

Confidential Reports:-

Assessing the employee’s performance confidentially is a traditional method

of performance appraisal. Under this method, superior appraises the performance
of his subordinates based on his observations, judgment and intuitions. The
superior keeps his judgment and report confidentially. In other words the superior
does not allow the employee to know the report and his performance. Superior
writes the report about his subordinates strength, weaknesses, intelligence,
attitude to work, sincerity, commitment, punctuality, attendance, conduct,
character, friendliness, etc. Though confidential report is a traditional method,
most of the public sector organizations still follow this method in appraising the
employees’ performance. This method suffers from a number of limitations.

MODERN METHODS

Behaviorally Anchored Rating Scales (BARS):-

The behaviorally anchored rating method (BARS) method combines elements

of the traditional rating scales and critical incidents methods. Using BARS, job
behaviors from critical incident- effective and ineffective behaviors are described
more objectively. The method employs individuals who are familiar with a
particular job to identify its major components. They then rank and validate
specific behaviors for each of the components.

How to construct BARS?

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Developing a BARS follow a general format which combines techniques

employed in the critical incident method and weighted checklist ratings scales.
Emphasis is pinpointed on pooling the thinking of people who will use the scales
as both evaluators and evaluees.

Step I: Collect Critical Incidents: People with knowledge of the job to be

probed, such as job holders and supervisors, describe specific examples of
effective and ineffective behavior related to job performance.

Step II: Identify Performance Dimensions: The people assigned the task of
developing the instrument cluster the incidents into a small set of key
performance dimensions. Generally between five and ten dimensions account for
most of the performance. Examples of performance dimensions include technical
competence, relationships with customer handling or paperwork, and meeting day
to day deadlines. While developing varying levels of performance for each
dimension, examples of behavior should be used, this could later be scaled in
terms of good, average or below average performance.

Step III: Reclassification of Incidents: Another group of participation who

are knowledgeable about the job instructed to retranslate or reclassify the critical
incidents generated previously. They are given the definition of job dimension
and told to assign each critical incident to the dimension that it best describes.

Step IV: Assigning Scale Values To The Incidents: Each incident is then
rated on a one to nine scale with respect to have well it represents performance on
appropriate dimension. A rating of one represents ineffective performance; the top
scale value indicates very effective performance. The second group of
participant’s usually assigns the scale values. Means and standards deviations are
then calculated for the scale values assigned to each incident. Typically incidents
that have standard deviations of 1.50 or less are retained.

Step V: Producing the Final Instruments: About six or seven incidents for
each performance dimension all having met both the retranslation and standard

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deviation criteria will be used as behavioral anchors. The final BARS instrument
consists of a series of vertical scales anchored by the final incidents. Each incident
is positioned on the scale according to it mean value.

Because the above process typically requires considerable employee

participation, its acceptance by both supervisors and their subordinate may be
greater. Proponents of BARS also claim that such a system differentiates among
behavior, performance and results, and consequently is able to provide a basis for
setting developmental goals for the employee. Because it is job specific and
identifies observable and measurable behavior, it is more reliable and valid
method for performance appraisal.

Researchers, after surveying several studies on BARS, concluded that “despite

the initiative appeal of BARS, findings from research have not been
encouraging”. It has not proved to be superior to other methods in overcoming
rater errors or in achieving psychometric soundness. A specific deficiency is that
the behaviors used are actively oriented rather than result oriented. This creates a
potential problem for supervisor doing the evaluation, who may be forced to deal
with the employees who are performing the activity but not accomplishing the
desired goals. Further, it is time consuming and extensive to create BARS.
Assessment Centre:-

This method of appraising was first applied in German Army in 1930. Later
business and industrial houses started using this method. This is not a technique of
performance appraisal by itself. In fact it is a system or organization, where
assessment of several individuals is done by various experts by using various
techniques.

In this approach individuals from various departments are brought together to

spend two or three days working on individual or group assignment similar to the
ones they would be handling when promoted. Observers rank the performance of
each and every participant in order of merit. Since assessment centers are meant

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for evaluating the potential of candidates to be considered for promotion, training

or development, they offer an excellent means for conducting evaluation process
in an objective way. All assesses get an opportunity to show their talents and
capabilities and secure promotion based on merit. Since evaluators know the
position requirements intimately and are trained to perform the evaluation process
in an objective manner, the performance ratings may find favor with majority of
the employees. A considerable amount of research evidence is available to
support the contention that people chosen by this method through better than
those chosen by other methods.

Human Resource Accounting:-

It deals with cost and contribution of human resources to organization. Cost of

the employee includes cost of man power planning, recruitment, selection,
induction, placement, training, development, etc. Employee contribution is the
money value of the employee service which can be measured by labor
productivity or value added by human resources.

Cost of human resources can be taken as standard. Employee performance can

be measured in terms of employee contribution to the organization. Employee
performance can be taken as positive when contribution is more than the cost and
performance can be viewed as negative if cost is more than contribution. Positive
performance can be measured in terms of percentage of excess of employee
contribution over the cost of employee. Similarly, negative performance can be
measured in terms of percentage of deficit in employee contribution over the cost
of employee. This % can be ranked to zero level. This technique has not
developed and still it is in transition stage.

Management By Objectives:-

This method is given by “Peter Ducker”, establishes results which workers or

managers expected, by mutual agreement with their supervisors, to achieve during

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a particular period of time. Ideally, MBO takes into account the needs and goals
of the organization, as well as those of the individual.

Four steps depict the method:

 Setting performance goals or targets.

 Recording performance against goals.
 Counseling on progress against goals.
 Reviewing final results against goals.

Psychological appraisal:

Psychological appraisals are conducted to assess the employee potential.

Psychological appraisals consists of (a)in-depth interviews,(b)psychological tests
(c)consultants and discussions with the employee,(d)discussions with the
superiors, sub-ordinates and peers, and (e)review of other evaluations.

Evaluation is conducted in the areas of – (a)employees intellectual abilities,

(b)emotional stability, (c)motivational responses, (d)reasoning and analytical
abilities, (e)interpretation and judgment skills, (f)sociability, (g)employees ability
to comprehend the events and ability to foresee the future.

The psychological appraisals results are useful for decision-making about (1)
employee placement (2) career planning and development, and (3) training and
development.

360O FEEDBACK:

The way in identifying key practices that make for a successful system such as
accountability, review by superiors, periodic feedback, and having a flexible
system. Preliminary research on the use of multiple raters in a 360o feedback
system appears to be superior in comparison to the traditional methods of
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performance appraisal which relied almost exclusively on the employee’s

supervisor. The 360o system uses not only supervisor but also peers, self rating by
the employee, subordinates and in some instances customers or clients, outside
consultants and even family and friends. In a sense the system draws on virtually
anyone who has familiarity with the employee in regards to his or her job
performance.

This multi-rater are reliable, valid, well-received by employees, easy to use

and job relevant. Although these data are encouraging, there is still little empirical
data about 360 degree feedback’s effectiveness, making it a prime candidate for
additional studies.

It is found through a meta-analytic study that each of the various rater training
programs has at least a moderate effect on improving performance appraisal
ratings, reducing rating errors and/ or improving rating accuracy. Of the training
programs, framed-of-reference (FOR) training emerges as the most promising.

The methodology of calibrating raters so they agree on what behaviors and

characteristics comprise effective performance in for. It also provides raters with
common performance standard (references) such that each rater understands what
constitutes good and bad performance on it.

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INDUSTRY PROFILE

India is the world’s largest democracy .Its media culture, a system that has evolved over
centuries, is comprised of a complex framework. Modernization has transformed this into
a communications network. India’s newspaper evolution is nearly unmatched in world
press history.
The Indian newspaper industry can be primarily segmented across two categories
viz.English newspaper and Regional/vernacular newspapers. The English medium
dominates the industry in terms of advertisement revenues.Historically,the English
newspaper industry in India has been fragmented with the players having regional focus
such as the Deccan Chronicle in Hyderabad, Hindustan times in Delhi, Times of India in
Mumbai, The Hindu in Chennai, Telegraph and Statesman in Kolkata, Deccan Herald in
Bangalore, Gujarat Samachar in Ahmadabad.However,now the players are looking
beyond their home territories viz.Times of India’s, Deccan Chronicle and Hindustan
Times started entering newer territories. Regulatory measures have played an important
part in defining the competitive scenario of the Indian Print Media Industry, which also
had its impact on industry growth. The Government of India has put in restrictions on
foreign investment in the newspaper industry on account of issues relating to national
security.
FEATURES OF NEWSPAPER INDUSTRY:
• News papers represent the dominant local media franchise.

• Stable audiences reach.

• Demographic trends within a Newspapers market are important.

• The barriers to entry in the industry are high.

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• Cost competitive.

• Key Revenue Drivers in the Newspaper Industry.

• Advertising revenues.

• Circulation Revenues.

• Key Features of the Newspaper Advertising Market.

 It is dominated in Column Centimeters (CCS) or square Centimeters. A typical

broadsheet has eight (8) columns and is fifty two (52) centimeters in length.

Telugu Newspaper market consists of several prominent daily newspapers. Some

of the regional newspapers in Telugu are Sakshi,Eenadu,Andhra
jyothi,Vaartha,etc.

 There has been a increase in magazine circulation and readership.

 Vernacular newspapers outperform the English newspapers in circulation.

 Increase in marketing action to gain market share.

 Attract new advertising segments, undiscovered advertisement potentials.

 Change of image to attract younger readers.

 Increase in purchase power leading to buying of more than one newspaper.

Drivers for increasing newspaper readership

 Dynamic environment with significant news flow.

 Accuracy of news.

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 Localized news.

MANUFACTURING PROCESS
PAPER
Paper is of course crucial. The paper used in newspapers called newsprint is thinner
than writing paper. Paper thickness is measured in gsm(grammes per square
meter).Typically we use 45gsm-55gsm.
INK
Ink is crucial. Inks that are used are hydrophobic (water fearing).
PLATE
In order to get the image onto the paper we need aluminum plates.
DISTRIBUTION CAPABILITY
It plays a critical role in ensuring that the newspaper reaches readers on time.
SIGNIFICANCE OF SUPPLEMENTS
These are add-ons given with the main newspaper.

ORGANIZATION PROFILE

JAGATI PUBLICATIONS LIMITED

There was a need to a media? Newspaper that could go beyond the political news and
satisfy the infotainment needs especially among the youth, women and rural-hinterland. It
was an opportune moment to launch the new brand of telugu newspaper,Sakshi on 23rd
march,2008.in one year and nine months it has achieved a circulation figure of 12,56,809
copies and is only a few thousand behind the market leader. To become the largest
circulated market of south India it is imperative to enter language markets as Sakshi has
the experience to challenge the strong and dominant brand.
The design of Sakshi needs to be clutter breaking: it had to be modern to appeal to the
youth and traditional and the conventional reader as well. It is a credit to Mr. Mario
Garcia that the product has designed is successfully able to negotiate these different
contradictory demands. The newspaper is colorful, full of visuals and very reader
friendly. The first page of the newspaper transcended all the traditional design norms by
providing the look and feel of home page of an internet website. It is not text heavy and
the main news items are captured in form of pictures with bullet points enabling the

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readers to capture the essence of the news in one glance. The news item also mentions the
page number where that particular news is available in detail. This is highly convenient
for the readers’ small qualitative research which was conducted by the author had found
that most of the readers refer to the news paper in two sittings. The first is in the morning,
when the readers is in a hurry and wants to capture and wants to capture the essence of
news in a couple of minutes. The second sitting is later in the day when they looked at the
news in details at leisure.
For a newspaper the quality formed a key parameter of evaluation. From the qualitative
research that we conducted it was evident that the readers were observant and critical of
the quality of paper and newsprint of their newspaper. For many it was the first
impression of the newspaper and spoke volumes about the brand. A newspaper’s ‘look’ is
dependent on its printing technology. Therefore Sakshi decided to use the latest printing
technology-Manu graph printing machines. Unlike the traditional methods this printing
technology uses CTP9COMPUTER-TO-PLATE) TECHNOLOGY.
The printing technology enabled them to print every page of the newspaper in color-an
aspect that is unique to Sakshi.Moreover this technology makes the color appear more
vibrant which makes the newspaper look more youthful.CTP also has a financial angle-it
eliminates one step in the process of printing which increases the cost efficiency of
Sakshi also has the ambition of becoming the biggest media brand of south India. They
have already introduced a TV news channel and an e-paper. But this is only first tentative
step in the direction of realizing the ambition. The marketing strategies need to be
reviewed, brand of Sakshi needs to be evaluated, emerging socio-cultural and political
trends need to be studied, and emerging media formats needs to be discovered before the
planning for the future starts and Sakshi moves to tomorrow.

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1Q) Are you familiar with Performance Appraisal System?

OPTIONS RESPONDENTS % OF RESPONDENTS

Yes 27 77
No 8 23

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80
70
60
50
40
30
20
10
0
YES NO

ANALYSIS:

From the above it is observed that majority of 77% of respondents are

familiar with Performance Appraisal System & 23% said they are not familiar.

2Q) Are you aware that SAKSHI is going to implement Performance

Appraisal?

OPTIONS RESPONDENTS % OF RESPONDENTS

Yes 25 71
No 10 29

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NO

YES

ANALYSIS:

From the above it is observed that majority of 71% respondents said

that they know Performance Appraisals is being implemented in their
organization & 29% said that they don’t know about that.

3Q) Were you informed about the Performance Appraisal System before or
after you joined the organization?

OPTIONS RESPONDENTS % OF RESONDENTS

At the time of joining 11 31
After joining 24 69

31
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AT THE TIM E OF
JOINING
AFTER JOINING

ANALYSIS

From the above it is observed that 31% of respondents said that organization
has informed about the system at the time of joining & 69% said they are
informed after some time.

4Q) Are you completely aware of parameters of Performance Appraisal?

OPTIONS RESPONDENTS % OF RESPONDENTS

Not at all aware 13 38
Partially aware 14 39
Fully aware 8 23

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NOT AT ALL AWARE

PARTIALLY AWARE
FULLY AWARE

ANALYSIS:

From the above it is observed that 38% of respondents said that employees
are not at all aware about the system, 39% said partially aware, 23% said fully
aware.

5Q) Which method will be implemented by SAKSHI?

OPTIONS RESPONDENTS % OF RESPONDENTS

Traditional 27 77
Modern 8 23

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TRADITIONAL
MODERN

ANALYSIS:

From the above it is observed that 77% of respondents said that the
organization will implement traditional method, 23% said modern method is
will be implemented.

6Q) Do you want feedback about your performance?

OPTIONS RESPONDENTS % OF RESPONDENTS

Yes 20 57
No 15 43

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YES
NO

ANALYSIS

From the above it is observed that 57% of respondents said they want
receiving feedback about their performance & 43% said they are not.

7Q) For which of the following reasons Performance Appraisal System is used
in the organization?

OPTIONS RESPONDENTS % OF RESPONDENTS

Promotions 10 29
Transfer to other places 1 3
Giving training 9 25

35
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Giving specific task 3 9

None 12 34

TRANSFERS

FOR TRAINING

GIVINGSPECIFICTA
SK
NONE

ANALYSIS:

From the above it is observed that 29% of respondents said Appraisal

System used in the organization is for promotions, 3% said for transferring to
other places, 25% said for training, 9% said for giving specific task & 34% said
none.

8Q) Who will appraise your Performance?

OPTIONS RESPONDENTS % OF RESPONDENTS

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 37

Chief 5 14
GM&AGM 8 23
Manager 0 0
HOD 22 63

CHIEF
GM&AGM
MANAGER
HOD

ANALYSIS:

From the above it is observed that 14% of respondents said Performance is

appraised by their chief, 23% said GM&AGM, no response for manager &
63% said HOD.

9Q) Are you sure that you get some benefits after appraisals?

OPTIONS RESPONDENTS % OF RESPONDENTS

Yes 17 48.5
No 17 48.5
Can’t say 1 3

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50
45
40
35
30
25
20
15
10
5
0
YES NO CANT SAY

ANALYSIS:

From the above it is observed that 48.5% of respondents said Appraisal

System is only for compensation and benefits, 48.5% said no & 3% said cant
say.

10Q) What is the main objective of the appraisal system?

OPTIONS RESPONDENTS % OF RESPONDENTS

To Assess Quality of work 26 74
To Assess Quantity of work 3 9
Both 6 17

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 39

80
70
60
50
40
30
20
10
0
TOASSESSQUALITY BOTH
OF WORK TOASSESSQUANT
ITY OFWORK

ANALYSIS:

From the above it is observed that a majority of 74% respondents said the
Appraisal system is to assess quality of work, 9% said quantity of work & 17%
said both.

11Q) How frequently do you think the Performance Appraisal should be done?

OPTIONS RESPONDENTS % OF RESPONDENTS

Quarterly 6 17
Half yearly 19 54
Once a year 8 23

Monthly 2 6

39
 40

60

50

40

30

20

10

0
QUARTERLY HALF ONCEAYEAR MONTHLY
YEARLY

ANALYSIS:

From the above it is observed that 17% of respondents said Performance

Appraisal should be done quarterly, 54% said half yearly, 23% said once in a
year & 6% said monthly.

12Q) How do you take the Performance Appraisal procedure?

OPTIONS RESPONDENTS % OF RESPONDENTS

Very Casually 3 9
Casually 7 20
Seriously 12 34

Very Seriously 13 37

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VERYCASUALLY
CASUALLY
SERIOUSLY
VERYSERIOUSLY

ANALYSIS:

From the above it is observed that 9% of respondents said they take

Appraisal procedure very casually, 20% said casually, 34% said seriously &
37% very seriously.

13Q) Do you think Self Appraisal is required?

OPTIONS RESPONDENTS % OF RESPONDENTS

Yes 31 88.5
No 4 11.5

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100

80

60 East

40 We st
North
20

0
YES NO

ANALYSIS:

From the above it is observed that a majority of 88.5% is in favor of Self

Appraisal & 11.5% is against.

14Q) Do you feel 360o Appraisal would be more effective?

OPTIONS RESPONDENTS % OF RESPONDENTS

Yes 28 80
No 7 20

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80
70
60
50
40
30
20
10
0
YES NO

ANALYSIS:

From the above it is observed that a majority of 80% respondents are in

favor of 3600 Appraisal & 20% are not in favor.

15Q) Is there a need for interactive sessions during Performance Appraisal

between superiors and subordinates?

OPTIONS RESPONDENTS % OF RESPONDENTS

Yes 32 91.4
No 3 8.6

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100
90
80
70
60 East
50
West
40
30 North
20
10
0
YES NO

ANALYSIS:

From the above it is observed that a majority of 91.4% respondents are in

need for interactive sessions to identify Performance Appraisal & 8.6% said no.

1Q) Are you familiar with Performance Appraisal System?

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 45

OPTIONS RESPONSE 2Q) Are you aware SAKSHI is

Yes going to implement Performance
No Appraisal’s?

OPTIONS RESPONSE
Yes
No

3Q) Were you informed about the Performance Appraisal System before or
after you joined the organization?

OPTIONS RESPONSE
At the of joining
After joining

4Q) Are you completely aware of parameters of Performance Appraisal?

OPTIONS RESPONSE
Not at all aware
Partially aware
Fully aware

5Q) Which method is being implemented by SAKSHI?

OPTIONS RESPONSE
Traditional
Modern

6Q) Do you want feedback about your performance?

OPTIONS RESPONSE
Yes

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No

7Q) For which of the following reasons Performance Appraisal System is used
in the organization?

OPTIONS RESPONSE
Promotions
Transfer to other places
Giving training
Giving specific task
None

8Q) Who will appraise your Performance?

OPTIONS RESPONSE
Chief
GM&AGM
Manager
HOD

9Q) Are you sure that you get some benefits after appraisals?

OPTIONS RESPONSE
Yes
No
Can’t say

10Q) What is the main objective of appraisal system?

OPTIONS RESPONSE
To Assess Quality of work
To Assess Quantity of work
Both

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11Q) How frequently do you think the Performance Appraisal should be done?

OPTIONS RESPONSE
Quarterly
Half yearly
Once a year

Monthly

12Q) How do you want to take the Performance Appraisal procedure?

OPTIONS RESPONSE
Very Casually
Casually
Seriously

Very Seriously

13Q) Do you think Self Appraisal is required?

OPTIONS RESPONSE
Yes
No

14Q) Is there is a need for interactive sessions during Performance Appraisal

between superiors and subordinates?

OPTIONS RESPONSE
Yes
No

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FINDINGS

• Proper awareness is created among all the employees of the

organization about Performance Appraisal System, because 77%
of the employees know about appraisal.

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 49

• The design and format of the Appraisal forms are very difficult to
understand, employees are facing problems to understand some
questions.
• Respondents feel that after Appraisal is done by their superior, he
should inform the employees about the level of their
Performance.
• 54% of the employees want performance appraisal to be done
half yearly.
• As 91.4% of the employees said that they want interactive
sessions with superiors from this we can say that the employees
want to enhance their working skills.
• Many employees are waiting for the implementation of the
appraisal system to know their working skills and efficiency.

SUGGESTIONS

• Hence awareness can be created among all the employees by

conducting classes and interactive sessions about the
Performance Appraisal.

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• The organization should cover all categories of employees for

appraisal system.
• Hence different forms should be designed for different categories
of employees of the Organization.
• The format should be simplified, like a questionnaire. So that it
will be understandable to the employees.
• By this the employees will know about their lacking and try to
improve and their superior should counsel the employee about
the Performance.

• Organization should give feedback to all levels of employees.

• Organization should focus on performance feedback and it

should be communicated for all the employees of SAKSHI.
• Organization should give scope for interaction between superior
and subordinate.

CONCLUSION

1. Performance appraisal refers to the assessment of an employee’s actual performance,

behavior on their jobs, and his or her potential for future performance.

2. Appraisals have several objectives but the main purposes are training needs, to assess
training needs, to effect promotions, and to give pay increases.

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3. Employees have to understand about his or her roles and become clear about his
functions, he or she understands his or her own strengths and weaknesses.

4. Performance appraisal should cover at all levels of the employee’s but it covers only
few levels. Not only should few employees who are aware of performance appraisal, all
the employees be aware.

5. The management has to make performance appraisal understand and clear about
questionnaire to every employee.

6. Organization has to maintain proper communication between superior and subordinate.

Which leads to organizational effectiveness and employee well being. Organizational
relations also been maintained.

BIBILOGRAPHY

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 52

Human Resource Management By Gary Dazzler.

Human Resource and Personal management By Aswathappa.

Personal Management By C.B.Memoria.

Essential Human Resource

Management and industrial Relations By P. SubbaRao.

Research Methodology By C.R.Korthari.

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