A

DISSERTATION REPORT

ON

“Employee Perception of Performance Appraisal Followed in Footwear Industry: A

Comparative Study on Bata India Limited and Liberty Shoes Limited”

Submitted to
Kurukshetra University, Kurukshetra
In the partial fulfillment of the Degree of Master of Business Administration
(Session 2011-2013)

Under the guidance of: Submitted By:

Ms. Vandana Madaan Amandeep Kaur

Head of the Department D/O S. Gursharanjit Singh

Institute Roll No: 1105/11

Univ. Regd. No: 08-MY-877

Univ. Roll No: ----------------

Tilak Raj Chadha Institute of Management & Technology

(Affiliated to Kurukshetra University, Kurukshetra & Approved By AICTE)

M.L.N. College Educational Complex, Yamuna Nagar- 135001 (Haryana)

Ph. 01732-220103, 234010, 234110. Fax: +91-1732-234110

 DECLARATION

I, Amandeep Kaur, Roll No- 1105/11, student of M.B.A. II Semester, hereby declare that
project entitled “EMPLOYEE PERCEPTION OF PERFORMANCE APPRAISAL
FOLLOWED IN FOOTWEAR INDUSTRY: A COMPARATIVE STUDY ON BATA
INDIA LIMITED AND LIBERTY SHOES LIMITED” submitted in the partial fulfillment of
the degree for Master of Business Administration to “Kurukshetra University” is of my own
accurate work.

I further declare that all the facts and figures furnished in this project report are the outcome of
my own intensive research and findings. They are first hand and original in nature, all the
information gathered by me during the course of the project will be helpful for the study for the
other researchers in the same area. The research done has been used for purely academic
purpose.

(Amandeep Kaur)
 ACKNOWLEDGEMENT

It is almost a ritual to place on record a statement of thanks at the beginning of the dissertation
report. But this acknowledgement is more than just a ritual. It is heartfelt thank to all those who
has provide me this great opportunity to learn something.

The researcher would like to thank the management of Tilak Raj Chadha Institute of
Management & Technology, for providing us such useful facilities and necessary help required
during the research period

Also, the researcher specially wants to thank Dr. Vikas Daryal, Director and Ms. Vandana
Madaan, Head – Department of Management for their valuable assistance.

The researcher explores this opportunity in expressing sense of gratitude and indebtedness whole
heartedly to all the respondents who were sampled for this research for their cooperation
throughout my research.
 EXECUTIVE SUMMARY

The intended research on “To study the differences between Bata India Limited and Liberty
Shoes Limited with respect to perception of fairness of the performance appraisal system and
employee’s satisfaction with performance appraisals” has been carried out to identify and
analyze the significant factors which lead to employee satisfaction and ultimately employee
perception

Performance Appraisal is the systematic evaluation of the performance of employees and to understand
the abilities of a person for further growth and development.

The research objectives are to study the employee’s perception with the performance appraisal
system, to address the specific aspects of performance appraisal, to study the procedure used to
allocate the outcomes, to analyze whether performance appraisal dissatisfy employees and
employers

The study is Descriptive in nature as in this study less or no information is available on how
similar problems or research issues have been solved in the past. Time horizon for this study is
Cross- Sectional (One- Shot or Short Term). This study is Non- Contrived because research has
been done in natural environment. The type of investigation of the study is Correlation as main
motive is to analyze relationship between employee turnover and long term skill retention

The null hypothesis has been made with an assumption that employee’s perception of fairness of
performance appraisal system is significantly different between both firms and employee’s
satisfaction with performance appraisal would be significantly different between both firms

To test the hypothesis t- test was applied through which it was found that rater’s confidence,
accuracy of ratings, clarifying expectations, providing feedback concern over ratings have
significant relationship with employee perception

The data was collected by researcher through 5 point Likert scale in order to analyze significant
factors which lead to employee satisfaction and ultimately employee perception. She had drawn
a sample of 75 respondents who are working in Bata India Limited and Liberty shoes Limited
and using non probability sampling technique.
There are two sources of data collection namely primary and secondary source. The researcher
had collected information from primary source that is through questionnaire

Various statistical tools have been applied like Factor analysis, Reliability Statistics, Correlation
and Regression to analyze the data using Software for Statistical Package for Social Sciences
(SPSS) 16.0.

By applying reliability statistics on variables, the value of Cronbach’s Alpha was found to be .
975 which is greater than .5. It means that data under study is reliable and sample is true
representative of the population.

By applying factor analysis the value of KMO Barlett’s test of Spherecity was found to be .698
which shows highly reliable and valid data set

Also there wass positive relationship between the factors of appraisal program and employee
perception.

Regression showed that indepent variables namely rater’s confidence, accuracy of ratings,
clarifying expectations, providing feedback and concern over ratings have (50.5%), (35.7%),
(31.0%), (26.5%) and (24.7%) impact on employee’s perception respectively

However the researcher has tried her best in collecting the relevant information for research
report, yet there have been some problems faced by the researcher like time constraint,
unwillingness of respondents, respondent’s bias, limited area of research etc.

On the basis of Data Analysis it was observed that majority of employee’s agree that they have
qualified rater, rating is done quality and quantity of work done and not based on personality,
there are consistent standards for all and rater sets clear expectations

The researcher has made various recommendations to the organization like proper induction
program should be there along with open communication, transparency in appraisal program etc

At last it has been concluded that that there is significant relationship between appraisal program
and perception of employees
 CONTENTS

 Introduction
o Company/Industry Profile
o Topic
 Theoretical Framework
o Construct
o Independent and dependent Variables
 Literature Review
 Research Objectives
 Research Methodology
o Research Design
 Type of Research Design
 Time Horizon
 Study Setting
 Measurement and scaling
o Flowchart for selection of statistical tools
o Hypothesis Development and Testing
o Sample and Sampling Design
o Data Collection
o Statistical Tools
 Factor Analysis
 Reliability Statistics
 Correlation
 Regression Analysis
 Limitations of the Study
 Data Analysis and interpretation
 Results and Findings
 Policy Implication
 Bibliography
 Annexure
o Annexure – I Questionnaire
o Annexure – II T-Test
o Annexure – III Reliability
o Annexure – IV Factor Analysis
o Annexure – V Correlation
o Annexure – VI Regression
o Annexure – VII Snapshot