“Study on Performance Appraisal System”
issue 3

“Study on Performance Appraisal System”

Tejal Manwatkar

Student, Department of Business Management,

Jhulelal Institute of Technology.

Dr. Surekha Jichkar

Assistant Professor, Department of Business Management,

Jhulelal Institute of Technology, Nagpur


Today’s working climate demands a great deal of commitment and effort from employees, who in turn naturally expect a great deal more from their employers. Performance appraisal is designed to maximize effectiveness by bringing participationtoamoreindividuallevelinthatitprovidesaforumforconsultation about standards of work, potential, aspirations and concerns. It is an opportunity for employees to have significantly greater influence upon the quality of their working lives. In these times of emphasising “quality”, there is a natural equation: betterqualitygoodsandservicesfromemployeeswhoenjoybetterquality“goods and services” from their employers.

Performance Appraisal is a process of assessing, summarizing and developing the work performance of an employee. In order to effective and constructive, the performance manager should make every effort to obtain as much objective information about the employee’s performance as possible. Low performance can push the organization back in today’s tough competition scenario.


Performance, Appraisal, Management by Objectives (MBO)


The Performance Appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring the improving the actual performance of the employee and also the future potential to the employee. Its aim is to measure what an employee does.

Performance appraisal is regular reviews of employee performance within organizations. Generally, the aims of a performance appraisal are too:

Give feedback on performance to employees. Identify employee training needs. Document criteria used to allocate organizational reward Form a basis for personal decisions: salary increases, promotions, disciplinary actions, etc. Provide the opportunity for organizational diagnosis and development. Facilitate communication between employee and administration.

It is powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. By focusing the attention on performance, appraisal goes to the heart of personnel management and reflects the management’s interest in the progress.

People differ their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. Therefore, performance management and performance appraisal is necessary to understand each employee’s abilities, competencies and relative merit and worth to the organization.

Performance appraisal rates the employee’s in terms of their performance. Performance appraisal takes into account the past performance of the employee’s and focuses on the improvement of the future performance of the employees.


Primary objective

  • To study the employee’s performance appraisal system in the SEMCO Electric Pvt. Ltd.

Secondary objective

  • To study & analyze the effectiveness of present performance Appraisal method being followed in Organization.
  • To collect feedback of Appraiser and appraiser about the existing Performance Appraisal method
  • To collect information about the drawback/shortcomings of the performance appraisal system in place in the organization
  • To make suggestions, based on employee feedback and other information collected with a view to improve the appraisal system / process in the organization.


The term research is composed two “re” and “search” which means to search again, Research for new fact or to modify the existing fact. Research methodology is one of the important chapters which helps the researcher to do the research work in a systematic way. The assigned task was to conduct a survey for a well reputed company. The research is concerned with the systematic and objective collection, analysis and evaluation of the information about specific aspects in order to help management make effective decisions. Once the aspect is identified and defined it is the responsibility of the researcher in a successful manner.

The methodology used in the study involves the collection of primary as well as secondary data. Research in common parlance refers to a search of knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic

Data collection

This research is exclusively based on primary data collected

Primary data

The objective of the study has been accomplished with the help of primary data is collected from 50 employees. The selected samples are met in persons and the data has been collected in with the help of the questionnaire.

Primary data refer to the data collected from the data sources. The primary data were obtained by disturbing questionnaires among the employees. The questionnaires contributed main source of primary data. Also interview with HR Manager also contributed finding of the research.

Secondary data

Secondary data were collected from the official record of the organization, websites and other publications. Data which are not originally collected but rather obtained from a published or unpublished source are known as secondary data.

The main sources are:

  1. Journals and Records
  2. Magazine
  3. Web sites

Statistical data from based on employee appraisal system

Based on the overall survey between the employees below is the data and my observation how effective performance appraisal is necessary for an organization.

Below data mentions the distribution of the satisfaction between the tenure of the employees k based in the appraisal received.


Structured questionnaire in which the question are based on the objective set for the research was used for collecting the information and to some extend observation also help the researcher to give some additional information.

VARIABLES: age, sex, educational qualifications and experience.


  • Employees attitude towards the current performance appraisal method is very much satisfactory, none of the employees said in the survey that they were dissatisfied. From the HR department we have found that all the employees are fully cooperative in the full appraisal process. All employees also agreed the fact that the past and the present appraisal system in transparent and bias free.
  • According to the employee majority of them told that performance appraisal was able to improve their performance. It also increases motivation as well because that they felt that the company is interested in their performance and adopting methods to improve it.
  • The majority of the employees also told that performance appraisal system was also helping in finding their hidden talent and putting into action as well.
  • Promotion process in this organization is based on a mix experience, performance and educational qualification, in which experience was to be the first factor in industry.
  • Company also did provide opportunity for growth and development and also helped to identify strength, weakness and hidden talent.


Performance appraisal may be understood as the assessment of an individual’s performance in a systematic way. The performance being measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility, health and the like. It also helps in developing the strength and rectifies weakness of employees.

They have been conducting a performance appraisal from the past years from its formation. Employees were cooperative and fully supporting the performance appraisal in the institution and it was found to be highly effective in the employee’s performance.

Industry has been running successfully for past several years and has created a good among its customers and society. People having poor background are given training and provided with jobs. Performance appraisal can be conducted more effectively by using the right tools and properly reviewing and updating the performance appraisal program. Suggestion from employees and experienced personnel can further enhance   and make the performance appraisal an ideal evaluation system.


  • Google.com & Wikipedia.com

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