A Study on Performance Appraisal with Reference to Whirlpool Pvt. Ltd., Puducherry

A Study on Performance Appraisal with Reference to Whirlpool Pvt. Ltd., Puducherry

A Study On Performance Appraisal With Reference To

S. Sornambigai, C. Rajalakshmi

Achariya School Of Business and Technology, Pondicherry

Abstract

Performance' appraisal is a formal structured system of measuring and evaluating an employee's job related behaviors and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee organization and society all benefit. Once the employee has been selected, trained and motivated, he is then appraised for his performance. Performance Appraisal is the step where the Management finds out how effective it has been at hiring and placing employees. The study concentrates on the HR affairs of the company. It involves the study of performances standards of the employees of Whirlpool Pvt Ltd, Puducherry. This study has been carried out in order to learn the Performances Appraisal of Whirlpool Pvt Ltd to know what strategies are being Implied. The Research design adopted for the study is Explorative as well as Conclusive. This study is to ascertain the effectiveness of Performances Appraisal methodology used by Whirlpool Pvt Ltd, Puducherry.

General Terms: Performance, Appraisal, Employee Key Words: Job, Respondents

1. Introduction

   Once the employee has been selected, trained and motivated, he is then appraised for his performance. Performance Appraisal is the step

   where the Management finds out how effective it has been at hiring and placing employees. If any problems are identified, steps are taken to communicate with the employee and remedy them.

   Performance Appraisal is a process of evaluating an employee s performance in terms of its requirements. Performance Appraisal can also be defined as the process of evaluating the performance and qualifications of the employees in terms of the requirements of the job for which he is employed, for purposes of administration including placement, selection for promotions, providing financial rewards and other actions which require differential treatment among the members of a group as distinguished from actions affecting all members equally.

2. Performance Appraisal

   Performance appraisal may be understood as the assessment of an performance in a systematic way, the performance being measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgement, versatility, health, and the like. Assessment should not be confined to past performance alone. Potentials of the employee for future performance must also be assessed.

   The main objectives of Employee Appraisal are:

   • To enable an organization to maintain an inventory of the number and quality of all managers and to identify and meet their training needs and aspirations.

   • To determine increment rewards and to provide reliable index for promotions and transfers to positions of greater responsibility.

   • To suggest ways of improving the employee s performance when he is not

     found to be up to the

     mark during the review period.

   • To identify training and development needs and to evaluate effectiveness of training and development programs.

   • To plan career development, human resource planning based potentials.

     • To study the practical application of performance appraisal.

       1. Methodology:

          The research design adopted for the study is

          Explorative & Conclusive research design. Questionnaires are prepared and personal interview

          Set Objectives

          Manage Performance

          was conducted. Nearly 200 samples are taken in Pondicherry Whirlpool Pvt Ltd, Puducherry. Various statistical measures have been used. i.e. Percentage Method & Weighted Average Method.

          Key Elements in Appraisal System

       2. Experimental Results:

       5.1 Percentage Method:

       Provide Rewards

       Carry out the appraisal

       Table 1: Sex & Marital Status

       Male	75
       Female	25
       Married	33
       Unmarried	67

       Male	75
       Female	25
       Married	33
       Unmarried	67

       Figure: 1 Key Elements in the Appraisal System

3. Objectives Of The Study:

   • To analyse the Performances Appraisal procedures at Puducherry

   • To study about the effectiveness of Performances Appraisal

   • To know employee opinion about Performances Appraisal

   • To study the performance appraisal system in whirlpool organization.

   • To study the transformation of performance appraisal form traditional to modern.

   • To get an insight into the relative importance of performance appraisal in organization.

   • To study the effectiveness of performance appraisal system in different organization.

     Source: Primary Data

     Table 2: Age & Monthly Income:

     Age	0>20	20-30	30-40	Above 40
     No. Of Employees	10	40	25	15
     Salary	Below 10,000	10,000- 15,000	15,000- 20,000	Above 20,000
     No. Of Employees	27	37	23	13

     Source: Primary Data

     Table 3: Educational, Departmental & Experience:

     others 35% are working in whirlpool pvt ltd at puducherry.

     Table 4: Classification of respondents on the basis of implemented in your organization.

     Merits	Grading	Others
     47	25	28

     Source: Primary Data

     CHART 2

     Educati onal	SSLC	HSC	Diplo ma	UG	PG
     No. Of Employ ees	8	12	44	25	11
     Departm ent	Produc tion	HR	R & D	Acc ount s	Others
     No. Of Employ ees	48	3	8	6	35
     Experie nce	0-1 Years	1-3 Year s	3-5 Years	5-7 Year s	Above 7 Years
     No. Of Employ ees	38	22	17	11	12

     Produc tion

     Educati onal	SSLC	HSC	Diplo ma	UG	PG
     No. Of Employ ees	8	12	44	25	11
     Departm ent	HR	R & D	Acc ount s	Others
     No. Of Employ ees	48	3	8	6	35
     Experie nce	0-1 Years	1-3 Year s	3-5 Years	5-7 Year s	Above 7 Years
     No. Of Employ ees	38	22	17	11	12

     Source: Primary Data

     CHART 1

     50

     40

     30

     20

     10

     0

     Inference:

     Merits Grading Others

     80

     70

     60

     50

     40

     30

     20

     10

     0

     Inference:

     From the above table and chart it is

     From the above table and chart it is inferred that implemented in your organization is 47% of merits, 25% of grading and 28% of others in whirlpool pvt ltd at puducherry.

     Table 5

     Factors	Stron gly Agre e	Agr ee	Mode rate	Disag ree	Stron gly Disag ree
     Increme nt	16	41	10	19	14
     Sharing burden	23	12	36	13	16
     Achieve Goals	15	69	13	2	1
     Construc tive Criticis m	9	28	20	29	14
     Employe e Perform ance	26	36	11	6	21

     Factors	Stron gly Agre e	Agr ee	Mode rate	Disag ree	Stron gly Disag ree
     Increme nt	16	41	10	19	14
     Sharing burden	23	12	36	13	16
     Achieve Goals	15	69	13	2	1
     Construc tive Criticis m	9	28	20	29	14
     Employe e Perform ance	26	36	11	6	21

     inferred that sex 75% of employees are male and remaining 25% of employees are females, marital 33% of marital remaining 67% are unmarried. age Below 20 are 10%, 20-30 are 40%, 30-40 are 25%

     and above 40 are 15%. Below 10,000 are 27%,

     10,000-15,000 are 37%, 15000-20000 are 23% and

     above 20,000 are 13%. coming to the experience 0-

     1 yr are 38, 1-3yr are 22%, 3-5yr are 17%, 5-7 yr are 11% and above 7yr are 12% and finally in educational SSLC having 8%, HSC having 12%, DIPLOMA having 44%, UG having 25% and PG having 11% departments is production having 48% HR having 3% R&D having 8% accounts 6% and

     Job Satisfact ion	9	29	44	12	6
     Top Manage ment Practices	2	11	42	31	14
     Employe es Behavio ur	12	36	23	19	10
     Fair PA Strategie s	15	25	35	20	5
     PA Suggesti ons	11	26	36	21	6
     Regular Feedbac k	12	32	25	19	12
     Annual Increme nt	8	26	31	23	12
     Individu al Improve ment	9	29	44	12	6

     Source: Primary Data Inferences:

     • From the above table and chart it is inferred that increment in your organization is 16% of strongly agree , 41% of agree, 10% of moderate, 19% of disagree and 14% of strongly agree in whirlpool pvt ltd at puducherry.

     • From the above table and chart it is inferred that atmosphere encouraged to share one another burden in your organization is 23% of strongly agree , 12% of agree, 36% of moderate, 13% of disagree and 16% of

strongly agree in whirlpool pvt ltd at puducherry.

• From the above table and chart it is inferred that helps people set and achieve meaningful goals in your organization is 15% of strongly agree , 69% of agree, 13% of moderate, 2% of disagree and 1% of strongly agree in whirlpool pvt ltd at puducherry.

• From the above table and chart it is inferred that constructive criticism in friendly and positive manner in your organization is 9% of strongly agree , 28% of agree, 20% of moderate, 29% of disagree and 14% of strongly agree in whirlpool pvt ltd at puducherry.

• From the above table and chart it is inferred that performance of employees improve after process of PA in your organization is 26% of strongly agree , 36% of agree, 11% of moderate, 6% of disagree and 21% of strongly agree in whirlpool pvt ltd at puducherry.

• From the above table and chart it is inferred that motivation and provides job satisfaction in your organization is 9% of strongly agree

  , 29% of agree, 44% of moderate, 12% of disagree and 6% of strongly agree in whirlpool pvt ltd at puducherry.

• From the above table and chart it is inferred that top management participates in your organization is 2% of strongly agree , 11% of agree, 42% of moderate, 31% of disagree and 14% of strongly agree in whirlpool pvt ltd at puducherry.

• From the above table and chart it is inferred that change behavior of employees in your organization is 12% of strongly agree , 36% of agree, 23% of moderate, 19% of

disagree and 10% of strongly agree in whirlpool pvt ltd at puducherry.

• From the above table and chart it is inferred that PA strategies are fair and objectives in your organization is 15% of strongly agree , 25% of agree, 35% of moderate, 20% of disagree and 5% of strongly agree in whirlpool pvt ltd at puducherry.

• From the above table and chart it is inferred that PA suggestion and innovations are rewarded in your organization is 11% of strongly agree , 26% of agree, 36% of moderate, 21% of disagree and 6% of strongly agree in whirlpool pvt ltd at puducherry.

• From the above table and chart it is inferred

  Table 6: Classification of respondents on the basis of improvements in your performance in your organization

  0 10%	10% – 20%	20% – 40%	40% & Above
  11	62	5	22

  Source: Primary Data

  Chart 3

  70

  60

  50

  40

  30

  20

  10

  0

  that management staff provide me with regular performance feed back in your organization is 12% of strongly agree , 32%

  Inference:

  0 10% 10% –

  20%

  20% –

  40%

  40% &

  Above

  of agree, 25% of moderate, 19% of disagree and 12% of strongly agree in whirlpool pvt ltd at puducherr.

• From the above table and chart it is inferred that annual increment /promotions in your organization is 8% of strongly agree , 26% of agree, 31% of moderate, 23% of disagree and 12% of strongly agree in whirlpool pvt ltd at puducherry.

• From the above table and chart it is inferred that continuous individual in your organization is 9% of strongly agree , 29% of agree, 44% of moderate, 12% of disagree and 6% of strongly agree in whirlpool pvt ltd at puducherry.

  From the above table and chart it is inferred that improvements in your performance in your organization is 11 of 0-10% , 62 of 10-20%, 5 of 20- 40%, 22 of 40%and above in whirlpool pvt ltd at puducherry.

  Table 7: Classification of respondents on the basis of satisfied are you in setting your goals and objectives in the beginning of the year in your

  organization.

  Factors	Hig hly Satis fied	Satis fied	Mod erate	Dissat isfied	Highl y Dissat isfied
  Goal setting	6	31	51	8	4
  Interdepa rtmental Team Work	30	35	15	13	7

  Source: Primary Data

  INFERENCE:

  • From the above table and chart it is inferred that satisfied are you in setting your goals and objectives in the beginning of the year in your organization is 6% Highly satisfied, 31% Satisfied, 51% Moderate 8% of Dissatisfied and 4% Highly dissatisfied in whirlpool pvt ltd at puducherry.

  • From the above table and chart it is inferred that satisfied are you in interdepartmental team work in your organization is 30% Highly satisfied, 35% Satisfied, 15% Moderate 13% of Dissatisfied and 7% Highly dissatisfied in whirlpool pvt ltd at puducherry.

    Table 8

    Factors	Yes	No
    Appraisal Committee	92	8
    Expectation	15	85

    Source: Primary Data Inference:

  • From the above table and chart it is inferred that appraisal committee in your organization is 92% of yes, 8% of no in whirlpool pvt ltd at puducherry.

  • From the above table and chart it is inferred that expected in your organization is 15% of yes, 85% of no in whirlpool pvt ltd at puducherry.

    Table 9: Weighted Average Method

    Factors	Increment	Top Manageme nt Practices	Employees Performanc e
    Strongly Agree	16	2	26
    Agree	41	11	32
    Moderat e	10	42	11
    Disagree	19	31	6
    Strongly Dissagre e	14	14	21
    CW Total	3.26	2.56	3.24
    Rank	1	3	2

    Source: Primary Data

    Inference:

    The above table shows that comparing with 3 tables performances appraisal was increments given top ranking and performances of employees last ranking of the analysis.

    1. Suggestions:

       • Extensive of the job training.

       • Free hand in decision making.

       • Focused job responsibility.

       • Transparent career planning of all officers.

       • Give tangible advantages.

       • Exemplary rewards should be given for unique achievements of the employees.

         • Informal were calling as and when they need.

         • Giving chance in decision making.

         • Reward for employee work.

         • Proper interactions with seniors.

         • Effective training and development programs should be held.

         • Proper feedback should be given to the management cadre staff at fixed time periods.

         • Suggestions and innovations should be encouraged.

         • Performance appraisal system should be extensively used in job rotation.

         • Up gradation of basic qualification of all workers to be taken in future based on their performance.

         • Improve competency of the workers.

         • The company should concentrate more on individual development

    2. Recommendations:

       • To improve attendance there should be rewards for those employees who attains above 95% attendance.

       • There should be training sessions to improve team building.

       • There should be proper training for appraisal to the employees.

       • In the beginning of the year employee must know the performance standards on which his/her performance will be judged in end of year.

       • More stress relieving packages should be offered to the mentally stressed staff.

       • Overtime should be taken care of at time of performance appraisal, which would motivate the employees to perform better for longer hours.

• Performance appraisal should after at proper span of time .

• Performance appraisal should be done by expert person.

• Even if a formal evaluation is given only once a year, an employee should be made aware of his or her performance periodically throughout the year.

• It is not enough to tell an employee who has performance problems that his or her performance is poor, or to identify problem areas without specific instructions on how performance can be improved.

• Employees must be given specific instruction on how performance can be improved and must have short- and long- term goals set to show incremental improvements.

• Management expectations should be realistic; problem employees do not become star performers in a matter of weeks.

• Performance expectations and developmental targets and activities should be set through mutual agreement with employees.

• Employees should be full participants in the performance appraisal process.

• During the feedback session, the appraiser should make sure that the employee has the resources required to do his job and must understand the nature of the existed barriers that might prevent the employee success.

• A 360 degree feedback could be an interesting performance appraisal approach especially for the most senior levels.

1. Conclusion:

   • The principal purpose of an appraisal should be to improve the employee and the organizational performance. The system must be based on a deep regard for people and recognize that employees are the most important resource.

   • The system should first of all contribute to the satisfaction of all the employees. This tenet will require a continuous effort in counseling, coaching and honest, open communications between the employee and supervisors.

   • The findings of this research conducted in the Lebanese firms seem to suggest that firms interested in improving their performance through the performance appraisal systems should seek to enhance the employee satisfaction toward this appraisal system.

   • The most common types of the performance appraisal employed in the Lebanese firms are the Graphic Rating Scale and the Management by Objectives.

   • Rare are those HRM interviewed who considered that the feedback should be focused on solving the problems causing a poor performance.

   • In most of the companies, employees are asked to complete a self-assessment before the feedback session and managers are the only source used to rate the employees.

   • When asking about the performance appraisal purposes, the HRM cited that they use performance appraisal information for salary administration, promotions and recognition.

   • None of them mentioned the functions of the development approach.

   • performance appraisal system, the use of inconsistent criteria which may lead to negative attitude toward the appraisal system, unskilled appraisers who lack communication skills and consequently are not able to conduct an effective performance feedback, absence of tools aiming to improve the performance appraisal system and finally the lack of the senior management support

   • Finally, the findings of this research indicated many areas to be improved in the appraisal system such as the use of explicit evaluation criteria, an open and sincere feedback, a greater senior management support, a process perceived as being fair by employees and finally a structure in which improvements in performance appraisals may be facilitated.

   • Finding job responsibilities of employees is easy but making of KRAs is quite challenging.

   • Performance appraisal is a vehicle to validate and refine organizational actions (e.g. selection, training)

   • Performance appraisal provides feedback to employees with an eye on improving future performance.

   • Performance of almost all employees is good.

   • Environment of the company is very good.

2. References:

[1]. Bagozzi, R. P. (1980), "Performance and satisfaction in an industrial sales force: an examination of their antecedents and simultaneity", Journal of Marketing, 44, 65-77.

[2]. Balzer, William K. and Lorne M. Sulsky. (1990), Performance Appraisal Effectiveness. In Kevin R.

Murphy and Frank E. Saal, eds. Psychology in Organizations: Integrating Science and Practice.

[3]. Hillsdale, NJ: Erlbaum, pp. 13356. Bernardin,

H. J. and Beatty, R. W. (1984), "Performance Appraisal: Assessing Human Behavior at Work", Boston: Kent Publishing.

[4]. Bernardin, H.J. and Beatty, R. (1984), "Performance Appraisal: Assessing Human Behaviour at Work", Kent-Wadsworth, Boston, MA.

[5]. Personnel Human Resource Mgnt By David A Decenzo

[6]. Human Resource Mgnt By Gary Dessler [7]. www.sailindia.co.in

[8]. www.wikipedia.org

[9]. www.performance-appraisal.com/intro.htm