A

STUDY ON THE CONCEPT

OF

“PERFORMANCE APPRAISAL METHODS”

AT

CARE HOSPITALS
(QUALITY CARE INDIA LIMITED)
NAMPALLY

A Project report submitted in partial fulfillment of the requirement of the

award of the degree of
MASTER OF HUMAN RESOURSES MANAGEMENT

BY
M PADMAJA
(HT NO: 227309672029)

SAANVI PG COLLEGE FOR WOMEN

2009-2011
(AFFILIATED TO OSMANIA UNIVERSITY)
 DECLARATION

I hereby declare that this dissertation Performance Appraisal System

project report prepared and submitted by me to the Department of Human
Resource Management, CARE Hospitals, Nampally, is an original work done by
me and has not been submitted to any other university at any time before.

M PADMAJA
 ABSTRACT

I have undertaken a project on “Performance Appraisal” as a part of my

curriculum for MBA. The main reason to undertake this project is to know how a good
knowledge base helps employees in order to learn things quicker and to give a higher
productivity for betterment of the company.
The main aim of doing this project is to understand what performance appraisal
is means to employees and how far it affects the company in lack of it.
The project helps me to understand how a company’s HR department tries to improve their
business and generate higher revenue by keeping a proper communication system their by
enhancing knowledge. It helps to understand how good working knowledge helps
employees to work efficiently.
Performance Appraisal helps employees to work more efficiently
.Performance management emphasizes on the fact how different levels of management in
the hierarchy, different employees with their subordinates, immediate supervisors,
managers, HODs should keep a proper balance and proper coordination among themselves.
 ACKNOWLEDGMENT

I feel a great pleasure to express my gratitude and thanks to all those people who
played valuable rolls for successful completion of my dissertation work.

I take this opportunity to express my heartfelt thanks to my project guide

Mr.K.RADHA MANOHAR, Manager-HR for his guidance and suggestions during
the progress of my project. I am thankful to the CARE HOSPITAL, NAMPALLY for
giving me an opportunity to undertake my project work. My special thanks to
Mr.A.RADHAKRISHNASAI, GM-HR,
Mr.N.HANUMANTH REDDY, AGM-HR,
Mrs.LAKSHMI SRIDHAR, AGM-HR for their support.

I also thanks to the staff of HR Department in CARE NAMPALLY

Mrs. T.V.V.L.JAYAMALA (DATA ENTRY OPARATOR)
Ms . S. SRILATHA (Sr. EXECUTIVE)
Mrs. B.SRIVALLI PAVANI (Jr. EXECUTIVE)

For their guidance and co-operation in completing my project work.

I take it’s a privilege to extent my sincere thank to all the staff of

carehospitals, Nampally, Hyderabad for their co-operation and help, with out
which this would not have been completed.

M PADMAJA
 CHAPTERISATION

CHAPTER I:
INTRODUCTION
a) Introduction to topic selected
b) Objectives of study
c) Review of literature

CHAPTER II:
THEORITICAL PERSPECTIVE OF PERFORMANCE APPRAISAL
SYSTEM

CHAPTER III:

ORGANISATION PROFILE
CHAPTER IV:

DATA ANALYSIS AND INTERPRETATION

• Specimen of questionnaire
• Specimen of performance sheets
CHAPTER V:

FINDINGS & SUGGESTIONS

CHAPTER VI:

CONCLUSION
CHAPTER VII:

APPENDIX
BIBLOGRAPHY
 CONTENTS

I. INTRODUCTION

II. THEORITICAL PERSPECTIVE OF

PERFORMANCE APPRAISAL SYSTEM

III. PROFILE OF THE ORGANISATION

IV. DATA ANALYSIS AND INTERPRETATION

V. APPENDIX
 List of Figures

Tab. No. Table Name Page No.

2.1 Methods of 19
Performance
Appraisal

2.2 Ranking Method 21

2.3 Paired 22
Comparison
Method

Fig. Figure Name Page no.

No.

2.1 Forced Distribution Method 23

31 Organisation Structure 43

32 Organisation Hierarchy 45

List of Tables
c
Tab. No. Table Name Page No.

2.1 Methods of 19
Performance
Appraisal

2.2 Ranking Method 21

2.3 Paired 22
Comparison
Method

34 Shifts 49
 CHAPTER I

INTRODUCTION

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 judgement.
 Management approach of an Organisation 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.

- Acquire or sharpen capabilities required to perform various functions

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

OBJECTIVES OF THE STUDY

1. The main objective of the study is to critically examine the Performance Appraisal
methods in hospital sector with reference to CARE.
2. To find out how the Performance Appraisal is carried out in the
organization.
3. To find out the employees perception about the concept of
Performance A Appraisal.
4. To find out whether the employees are satisfied with present
Performance Appraisal system being implemented in the organization.

REVIEW OF LITERATURE
 The history of Performance Appraisal is quite brief. Its 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

judgements 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.

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.
MODERN APPRAISAL:

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)
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.

CHAPTER II
 THEORITICAL
PERSPECTIVE OF
PERFORMANCE
 APPRAISAL
SYSTEM

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.

EVOLUTION
Formal appraisal of an individual’s performance began in the Wei
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
some one 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”.

MEANING OF PERFORMANCE APPRAISAL

Performance appraisal is a method of evaluating the behaviour 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 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.
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, 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:
 Providing information for succession and resource planning.
 Providing a base for improved commutation between boss and
subordinates.
 Identifying and recording performance weaknesses.
 Providing a basis for analysis of performance and identifying the
required standards and improvement.
 Identifying potential.
 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.
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

Informal appraisals are conducted when ever 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

1. Graphic Rating Scale

2. Ranking Method MODERN METHODS
3. Paired Comparison
Method Behaviorally Anchored Rating
4. Forced Distribution Scales
Method Assessment Center
5. Check List Method Human Resource Accounting
Management by Objectives
 Simple Checklist
Psychological Appraisals
 Weighted
checklist
 Critical Incident
Method
6. Essay/ Freeform
Appraisal
7. Group Appraisal Tab 2.1

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
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)
1) . . . . . . . . . . . . . . . .
2) . . . . . . . . . . . . . . . .
3) . . . . . . . . . . . . . . . .
4) . . . . . . . . . . . . . . . .
5) . . . . . . . . . . . . . . . .
6) . . . . . . . . . . . . . . . .
7) . . . . . . . . . . . . . . . .
8) . . . . . . . . . . . . . . . .
 Column II (Worst)
9) . . . . . . . . . . . . . . . .
10) . . . . . . . . . . . .
11) . . . . . . . . . . . . . .
12) . . . . . . . . . . . . . .
13) . . . . . . . . . . . . . .
14) . . . . . . . . . . . . . .
15) . . . . . . . . . . . . . .
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 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:-

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.

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.
o 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.
o 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 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.
o 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 weightages
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 unfavourable 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.
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:-
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 behaviours from critical incident- effective and ineffective behaviours
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 behaviours for each of the components.

How to construct BARS?

 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 behaviour 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, specific examples of behaviour 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 deviation criteria will be used as behavioural 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 behaviour, 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 behaviour, 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 behaviours 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 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 labour 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 Drucker”, establishes results which

workers or managers expected, by mutual agreement with their supervisors, to
achieve during 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 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 each relevant job
dimension. It provides further guidelines to enhance greater accuracy across
dimensions.
CHAPTER III
 ORGANIZATION’S
PROFILE

INTRODUCTION

Care foundation is a registered non profit society with the mandate of

making quality health care affordable and accessible to all through appropriate use
of technology. The foundation has been established by a group of medical
scientists and technologies with the stated mission of making advanced
comprehensive healthcare affordable and accessible to all. The foundation is a
non- profit organization and is registered as a society under Andhra Pradesh
Society Act 1365 Falsie.

The patron of the foundation is renowned cardiologist padmashri Dr

B.SomaRaju and the chairman of the foundation is prof.P.krishnam Raju. The
foundation implements its mission of making advanced technology based care
affordable and accessible to common man under a three dimensional programme.
a. Conducting research & imparting specialized education,
b. Developing cost effective medical products, and
c. Providing health care to people from the economically weaker
sections of the society and those living in rural areas.

In 1997, when Dr.B.Soma Raju and Dr.D.Prasada Rao led a team of

medical professionals to set up the first CARE Hospital, it signaled the dawn of a
new era in medical care .At the heart of this movement was a burning desire to
practice medicine with compassion, concern and care, with a single minded
objective the recovery of the patient. Today, with Multi-Specialty Hospital across
the state, and a reputation for humanization and selfless service of the highest
order, CARE Hospital enjoys an unbelievable amount of goodwill. A million smiles
will bear testimony to that.

The organization was incorporated with the main objective of running

all kinds of hospitals, dispensaries ,nursing homes, clinical laboratories
carrying out medical research, education and train medical students
,nursing professionals, hospital administrator, grant diplomas or
recognitions as the company may deem fit and to render professional
consultancy and advice to any individual firm, company, Govt etc. in the
fields of research and development relating to medical, pharmaceutical and
chemical industries.
GROWTH

The care foundation was established with the noble objective of providing
needed research in cardiology, to achieve indigenization of the fast growing range
of hard ware products, devices and disposables in the field to provide excellent
academics at different levels and to strive to bring down the ever bargaining cost of
cardiac health care under the able leadership of its founder, chairman DR.B.SOMA
RAJU. The care foundation has relentlessly pursued those objectives and can now
look back with some satisfaction on the work done towards this end in the first few
years of its experience.
 Quality care India limited was an inevitable off shoot of the zeal to achieve
the above mentioned objective. And it has the purpose of giving a practical shape
to this pursuit. The care hospital Nampally, Hyderabad is the first of the project of
Quality Care India limited established in July 1997 in leased premises ,the Hospital
needs little to be said in its praise as the direction it has then and its achievements
are now very well known, the immense credibility it has established is just a
reflection of this. DR.B.SOMA RAJU is himself, the chairman of Quality Cares
India limited and the care hospital and DR.B.PRASAD RAO, the vice chairman, the
governing board of the hospital has Dr .B. Soma Raju, and Mr. D. Suresh as its
directors.
The care hospitals stated with 200 beds .It has never shrinked from its
responsibility of looking after the economically deprived sections of the population.
It is to the credit of the hospital that nearly 20% of accommodation is allocated
under general ward category where the tariffs are highly subsidized.
The hospital has so far been an exclusive cardiac care hospital with few
supporting departments such as internal medicine and Pulmonology; it has on its
panel specialists from all the branches who visit on call.
The hospital runs on extremely busy intensive coronary care unit attending to all
cardiac emergencies .The unit is staffed with an in house cardiologist around the
clock, supported by junior doctors, an anesthetist, a large number of technicians
and nursing staff and others. Laboratory services are available

continuously. Emergency services such as primary angioplasty for a person with

developing heart attack are performed at all times of day or night.

Care hospitals felt the need to introduce other specialties that could serve
the population with the same professional competence and commitment as cardiac
team with this in view neurology and other neurology services were being started
at CARE NAMPALLY from October 2000.PROF J.M.K MURTHY who is a well
known neurologist and acclaimed expert on seizure disorders is heading the
neurology unit. Continuing on the path to achieve the objective the group has
established a super specialty hospital at BANJARA HILLS, HYDERABAD. This
has brought under one roof highly qualified, competent and dedicated
professionals who would provide the care and service to people. CARE foundation
 started a research and development institution, cardio vascular devices and
disposables to develop cardiac devices and disposables.

THE CARE MODEL

They operate on physician driven model. This means that all the main
constituents of the CARE movement ,the promoters, administrators and service
providers are physician .The center of the CARE model is the patient and the
overriding motive of all care’s activities is to provide quality medical care at an
affordable cost. Technology training and team work from the every core of the
CARE model which also emphasizes a comprehensive and continuous education
and training of every individual involved in the patient care. Every effort will be
taken to ensure that their growth is decided by the patients needs and not one
decided by their corporate requirements.

FUNDAMENTAL REASON FOR EXISTENCE

• To make quality medical care affordable and accessible considering quality,
cost, access.
• Timeless unchanging core values.
• Putting the patient first above ones own interest.

MISSION

• The mission is more than just a statement; it’s the cornerstone of all efforts.
And, of course a constant reminder of their movement’s founding values.

• To provide quality medical care at an affordable price, delivered with

compassion, concern and care, through team spirit, training and technology.
• To develop a comprehensive healthcare delivery model that suits their
population.
• To develop ‘centers of excellence’ in various medical specialties.
• To evolve a holistic approach to healthcare by incorporating the best from
various forms of medicine.

VISION

.To evolve as a unique university-based health-centre where the quest for new
knowledge would continuously yield more effective and more compassionate care for
all.

• To nurture a new generation of professionals of long –life commitment,

dedication, knowledge, skills, wisdom and values.
• To strive for public trust and maintain medicine’s humane and noble
place amongst professions.
• To be globally competitive in healthcare and related businesses
integrating local culture and ethos.
• To promote development of indigenous products and systems, adapting
appropriate technologies generating clinical skills and removing barriers before
patients accessing it through institutional partnership.

OBJECTIVES

To bring down the cost without compromising on quality. To indigenize all

the costly disposables in the next 10 years.
• Cost of angiogram below Rs.7, 500.
• Cost of angioplasty below Rs.40, 000.
• Cost of stent below Rs.75, 000
• A day stays in ICCU to be below Rs.3, 000.

POLICIES
• Sensitivity to pain and suffering shall be accorded highest priority to every
employee.
• Same treatment for same illness, irrespective of ability to pay.
• Tests will be done only when medically necessary
• Selection of all employees shall be on the basis of merit.
• Compulsory continuous medical education to lab health care personnel.
• All departments shall be run by full time consultants.
• Round the clock availability of cardiologists, C.T. Surgeon’s neurologists,
anesthetists, labs and technicians.

MILESTONES

• CARE Hospital, the Heart Institute established at Hyderabad-200 beds July 1997.
• 50 bed cardiac centre established in secunderabad –June 1998.
• 100 bed Heart Institute set up in Vishakapatnam -April 1999.
• CARE foundation got defense technology spin-off award from Prime Minister-
August 1999.
• The Institute of Neuro-Sciences set up in Hyderabad-October 2000.
• The Institute of Medical Sciences with Multi-specialty services with 350 beds at
Banjara Hills (Hyderabad)-October 2000.
• Padmashri awarded to Dr.B.Soma Raju and DR.D.Prasada Rao, the founders of
CARE-January 2001.
• Bharat Ratna, Dr.APJ Abdul Kalam, inducted onto the board –May 2001.
• India’s first V-SAT based public–private Telemedicine system launched by chief
minister of AP-October 2001.
• Established `a Community Model Hospital at Amalapuram-Jan 2002.
• Established a Primary Health Care Model Hospital at Lakhavaram-March 2002.
• Established a 50 bedded Hospital at Vijayawada-Dec 2003.

VALUES
Practice Practice medicine as an
Integrated team of
Compassionate
Physicians, Nurses and
Allied professionals.

Education Learn to serve through

Continuous training and
Education cutting across
All sections of Hospital
Teams.

Research Conduct basic and

Clinical research
Programs to improve
Patient care and to
Benefit society.

Mutual Respect Treat everyone with

Respect and dignity.

Commitment to quality Quality improvement

Through continuous
Process and research.
Work Atmosphere Foster collaboration and
Team work, personal
Responsibility and
Accountability,
Innovation and
Creativity.

Societal commitment Do well to the society

We live in and assist
Patients with limited
 Financial resources in
Matters of health care.

Finances Allocate resources within

The context of a system
Rather than its individual entities

CULTURE OF CARE

The best interest of their patient is the only interest they consider. They at
CARE, combine an emphasis on the pure science of medicine with a keen
appreciation for each person’s humanity. Their caring staff, advanced medical
care, accessibility and efficiency is what make them different from others –the
preferred choice of the international patient .Every employee devotes the
necessary attention to ensure that every patient’s visit to CARE is convenient and
worthwhile. The culture at CARE bears testimony to the fact that:
“They are dedicated to the needs of their patients .They serve with a special
attitude, special care so that all patients gain the maximum benefit from their visit
to CARE.
“It uses a collaborative approach where each physician can call on the expertise of
medical specialists and sub specialists. This team work helps physicians arrive at
an accurate diagnosis and the most effective course of treatment. Each patient
benefits from the experience and skills of many physicians. CARE continues to
offer superior value with an efficient,

streamlined approach to medical care that emphasizes accurate diagnosis and

effective treatments.
“It is patient centered organization and focus on one thing-the needs of the
patient. The needs of the patient come first.
“It provides the best care to every patient through integrated clinical
practice, education and research.”
 “Comprehensive evaluation with timely, efficient assessment and treatment.
Availability of the most advanced, innovative diagnostic and therapeutic technology
and techniques.”
“The CARE organization recognizes the importance of good communication
with the patient’s personal doctor. Upon the patient’s return home, CARE
physicians send all pertinent medical information to the home doctor to assist in
continued good care. It functions cooperatively to bring skilled, compassionate
care to patients from around the world.

MEDICAL SPECIALITIES IN CARE

SURGICAL

● Cardio-Thoracic
● Dental
● ENT
● General, Gastrointestinal and Laparoscopic
● Gynecology
● Hand Surgery
● Neuro Surgery
● Surgical Oncology
● Ophthalmology
● Orthopedic Surgery & Trauma Services
● Urology
● Vascular Surgery

MEDICAL

● Anesthesia
● Blood Bank
● Cardiology
● Dermatology
 ● Endocrinology
● Gastroenterology
● Internal Medicine / Coronary & Critical Care
● Life Style Clinic
● Nephrology
● Neurology
● Oncology
● Physiotherapy
● Psychiatry

DIAGNOSTICS

● Cardiology
● Gastroenterology
● Neurology
● Nuclear Medicine
● Radiology (Image logy)
ORGANISATION STRUCTURE

PATIENT

Doctors and Nurses

Paramedics and House keepers

Departmental Manager

Support Manager

Directors
 In structure, we see patients, are at high priority, at quality care the main
criteria is putting the patient first above ones own interest.” They are treated as
Elite Group of the organization.

The next preference is given to doctors and nurses; they are the people who give
emotional support and satisfaction to the patients. The more comfort they give the
more satisfied is the patient, here the nurses play a very important and vital role,
they look after every aspect of the patient starting with their food to their
medicines, for this they have to be very patient, humble and pleasing.

The next comes Paramedics and House keeping, the more cleanliness the more
attractive the hospital, so the housekeeping people play a crucial role in attracting
the people to opt the hospital. Pharmacist is the one who delivers the prescribed
medicines given by the physician, the more pro active they are the more
willingness to buy the medicines from within the premises. Next comes the
Departmental manager, who looks after the departments, its functions and the
procedures to be followed. He is the person who is responsible for all activities to
be carried for attaining the objectives.
ORGANIZATIONAL HIERARCHY

CHAIRMAN

VICE CHAIRMAN

BOARD OF DIRECTORS

HOSPITAL ADMINISTRATOR

GENERAL MANAGER

DEPUTY GENERAL MANAGER

MANAGER

ASSISTANT MANAGER

SUPERVISOR

REGULAR STAFF

ASSISTANT MANAGER
 ORGANIZATION POLICIES

EMPLOYEE BENEFIT

• Provident Fund: All the employees will contribute 12% of their basic salary
which is 60% of their Gross 25% H.R.A 15% conveyance.

• All the employees who are on the pay roll are eligible for this and trainees
after completion of their training get the eligibility on regularization.

• From the employee contribution of P.F. 8.33% will go to the pension fund
and remaining 3.67% will be added to P.F.

EMPLOYEE WELFARE

a. All the members are covered under Medi claim policy for self and family
members.

b. Each member is covered for 50,000 insurance

c. Insurance coverage will be done after 3 months of service.

SALARY/WAGES

1. Attendance is taken from the swipe machine in time office and uploaded into
the pay roll management system.

2. Pay roll is managed in the pay roll package (jeeva)

3. Monthly statement like loss of pay, canteen deduction, pharmacy allowance.

Nursing allowance, New joining, Resignation, Monthly increments, Doctors,
Night shifts, Managers Etc., are prepared along with salaries.

4. Salaries are deposited into savings bank account directly.

LEAVE MANAGEMENT

Being an essential service regular attendance for work is a vital

factor in ensuring smooth and uninterrupted operation. This requires that employee
plan their leave in order to guide to staff on subject of leave. There are:

Casual leave : 12 per year

Sick Leave : 12 per year

Earned Leave : 15 per year

Maternity Leave : 90 days

Compensatory off : Day

Leave on loss of pay /special Leave

GRIEVANCE OF EMPLOYEES

All complaints arising out of employment shall be submitted to

the Manager or any other person authorized on his behalf.

The following procedure should be adopted by the employees in the order stated.

• Representation of the HOD.

• Representation of the Head of HOD

TRANSFERS

All the employees are subjected to transfer as follows:

1 .Intra Dept 2. Inter Dept 3. Inter Hospital

• Permanent
• Probationer
• Temporary
• Trainee
• Internees
• Honorary Trainee
• Contract Labour

ADMINISTRATION

In any Organization, HR Department plays a very important role.

All the major activities will be dealt in HR Department such as preparation of full
and final settlement, maintaining record of each employee of Organization, pay roll
following up of appraisal of potential, rewarding the “BEST ASSOCIATE AWARD”
from various Departments of Organization based on their performance, skills,
qualities, responsibilities.

WORKING HOURS AND CONDITIONS

There are shifts for the employees working in the Organization. For Administrative
department the working hours are 8 AM to 5 PM.
 SHIFTS

MORNING: AFTERNOON:

M1- 7AM-4PM M4 - 12PM- 9AM

R1- 8AM-3PM A - 1PM- 8AM
M2- 9AM-6PM A1 - 2PM-9PM
M3- 11AM-8PM G - 8AM-5PM

NIGHT:
N - 8PM - 8AM

PERSONAL DEPARTMENT DETAILS:

Care Hospital is strongly driven by the philosophy that HR is the

strongest, valuable of all resources of any Organization. Human nature is very
complex and to harness and get the best for the benefit of the Organization, as
well as individual utmost care is exercised right from the stage of selection
throughout the entire process of HRD.
MANPOWER REQUIREMENT:

1. To take specification for Job requirement in the prescribed format for all
jobs opening in the Organization.

2. All the vacancies are displayed in the notice board for employees to
apply. The same is to facilitate equal opportunities for employees of
Organization.

3. All openings are intimated to employment exchange.

4. All vacancies arise, either due to resignations or new openings, first

option is given to existing employees in the Organization and they will
undergo for selection based on their job opening.

5. To competence requirement for all positions in the Organization the GM-

HR should consult with the HOD’S

SELECTION AND RECRUITMENT:

 The vacancies are identified in each Department and selection is made with the
profile of the person needed for filling the vacancy. The first option is given to
the existing employees.

 For all openings, the HR Department personnel conduct preliminary interview

and the ratings are given.

 Whenever fresher are recruited for job opening, selection process includes,
written test, wherein candidate is required to score 60% marks for further
Interviews and Selections.
  Short listed persons are called for Interviews by the Hospital Administrator for
suitable place and date.

INDUCTION/ORIENTATION:

• Introduce the employee to the staff.

• Explain him the Organization History, Hierarchy, Grade structure
• Appraise him the rules and regulations of the organization
• Put him under training in Departments to understand the role of each
Department where he/she is going to work.
• Maintain induction training record.

PERFORMANCE APPRAISAL:

• The performance Appraisal is carried out once every year for all associates
and after the completion of one year for new recruits.
• Trainees will be assessed of their performance after completion of 3/6
months.
• After their potential appraisal they are recommended for promotion.

TRAINING:

 At least 20 managers undergo Management development training in a year.

 To maintain record related to competence, education, awareness, and
training for all associates.
 Induction, training is given for newly recruited personnel.
 On the job training is given to all staff depending upon recruitment.
FEED BACK:

After returning from the training the effectiveness of training is verified by the HOD
and forwarded to General Manager-HR for perusal of Manage

PERFORMANCE MANAGEMENT SYSTEM POLICY IN CARE HOSPITAL

1. Purpose
To lay down policy guidelines for implementation of the Performance Management
System.
2. Scope
This policy will be applicable to all associates of Care except trainees, apprentices and
contract staff.
3. Responsibility
3.1 All HODs are responsible to ensure that the appraisals are completed on time.
3.2 HR Department will facilitate and monitor the process. The HR Department will also
acquaint the HODs/appraiser/ appraisees about the Performance Management System.
4. Accountability
The Unit HR in charge under the overall supervision of the HA will be accountable for the
appropriate implementation of the Performance Management System in the unit while the
CHRD will responsible for its implementation at the Corporate and for associates at the
senior and middle levels of management. Queries on matter of policy will be referred to
Corporate HR for clarification.
5. Procedure
5.1 Performance management is a method used to measure and improve effectiveness
ofassociates at the work place. It is a system composed of several activities including goal
setting, tracking changes, coaching, motivation and associate development.
5.2 The performance management cycle begins with goal setting. Performance is then
tracked against the associates goals and eventually appraised in a formal end of appraisal
period meeting. An informal mid appraisal period review will also be held.The results of
the formal appraisal will feed into the incentive/increment system.
5.3 It has been decided to adapt a Strategy Based Performance Management
System. The schematic representation of the system is at Annexure 1. The model will have
thefollowing four phases :-

5.4 Phase 1 – Performance Planning. At the beginning of the appraisal period the
appraiser and appraisee will get together for a performance planning meeting. In this
session they discuss as to what the associate will achieve during the appraisal period.The
objectives, Key Performance Indicators, the competency desired of the appraisee and the
individual developmental plans are recorded on the Performance Planning Form and kept
with the personal file of the associate that is maintained in the HR Department.
5.5 Phase 2 – Performance Execution. Over the course of the appraisal period the
associate works to achieve the goals, objectives and key responsibilities. The
appraiser coaches and provides feedback as well as creates conditions that motivates and
resolves performance problems that arise. A semi-formal periodic review is held to review
performance and set corrections in order to enable the appraisee achieve the laid down
objectives.
5.6 Phase 3 – Performance Assessment. This is the appraisal system wherein the
supervisor/appraiser has to fill out an Assessment Form. The Appraisal Forms and a copy
of the Performance Planning Forms will be sent by the HR Department to the appraiser. .
The completed appraisal form is reviewed by the supervisors senior (boss) and submitted to
the HR Dept who in turn will scrutinise the same for its correctness. The performance
assessment of the appraiser will be shown to the appraisee and signed by both. However
the remarks/assessment of the Reviewing Officer will not be shown to the appraisee and
will be kept confidential. This is a measure to bring in objectivity, as also avoid a ‘ one
man report ‘ as well as even out the inflationary trend that is generally seen in appraisals
that have to be shown to the appraisee. Appraisal forms of HOD (Unit)
will also be endorsed by the Corporate Head in the staff / departmental channel of
reporting.
5.7 Phase 4 – Performance Review. The appraiser and the appraisee meet and discuss
the assessment. They will also set a date to hold performance planning discussion for
the next appraisal period, at which point performance appraisal starts anew.
6 Purpose of Performance Appraisal
A performance appraisal serves the following purpose:-
6.1 Provides feed back to associates about their performance and encourages
enhanced performance
6.2 Determines who gets incentive and promotion
6.3 Counselling of poor performers
6.4 Determines training and development needs
6.5 Confirming that good hiring decisions are being made
6.6 Facilitates layoff and down sizing decisions
7. Types of Appraisal Forms
Depending upon the managerial level ,separate types of Appraisal Forms will be
formulated by the Corporate HR Department and used for Senior Management,
Mid Level Management, and Junior Managerial Cadre. At the Executive Level only
an Appraisal Card will be used for the assessment system.
8. Filing and Handling of Appraisal Forms
The Appraisal Form is a privileged document. It should be treated with confidentiality.
The receipt/despatch of the Forms should be done in a secure/confidential envelope.
The Form should finally get filed in the personal file of the individual.
9. Criteria for initiation of Appraisal Forms
The following will be the norms for initiation of the Appraisals
9.1 The appraisee should have served for at least 90 days under the appraiser. In case
he/she has not served for 90 days then the previous supervisor will be eligible to
initiate the appraisal. In case he/she has served for less than 90 days in Care then he/
she will be eligible for an appraisal in the succeeding appraisal period.
9.2 All appraisals will be reviewed and endorsed by the next senior in the line of
reporting to the appraiser.
9.3 Appraisals of all HODs (at unit) will also be endorsed by the staff functional head at
Corporate.
9.4 Associates below the grade of Manager (or equivalent designation) will not normally
be eligible to endorse the appraisal. In case the appraiser is at a designation lower
than that of a Manager then a special dispensation of the CHA/HA/Corporate Head
should be taken to permit initiation.
9.5 In case the appraiser and appraisee are of the same designation then the next senior in
line should initiate the appraisal.
9.6 Special endorsements can be made by the MD/ HA/COO/CEO/Chairman on any
appraisal form
Queries on eligibility of initiation should be addressed to Unit/Corporate HR for
clarification.
10 Special Performance Reviews
Special performance reviews can be initiated as necessitated by extraneous
circumstances such as special achievements or review of trainee cadre managerial
staff seeking to come onto the regular roles. In such cases approval of CHRD should be
sought to initiate special appraisal reports.

11 Appraisal Period
The appraisal period and dates for initiation/completion of Appraisal Forms and
payment of increments will be as follows:-

Carde Appraisal DATE

Period

Initiatio Completion of Payment of

n Appraisals Increment
Forms

Senior 01Apr-31Mar 01Apr 20Apr July

Management (next year)
(G10-G12)
Middle Level 01Apr-31Mar 01Apr 20Apr June
Management (next year)

Junior Level 01Jan-31Dec 01Jan 31Jan May

Management
Executive 01Jan-31Dec 01Jan 15Feb April
Cadre
Nursing 01Oct-30Sep 01Oct 30Oct November
Cadre (next year)

12. Performance Rating

Associates will be assessed by the appraiser on various individual qualities as well as their
overall performance on ratings as under:-
12.1. Performance rating ‘A’- Performance exceptional and consistently high level
12.2. Performance rating ‘B’- Performance superior and consistently exceeds
overall performance requirements
12.3. Performance rating ‘C’- Performance satisfactory meets most parameters of
performance requirements. Weaknesses offset by
strong points.
12.4. Performance rating ‘D’- Below satisfactory performance. However displays
progress towards an enhanced performance
12.3. Performance rating ‘E’- Poor performance due to being relatively new to
assignment or definite weakness.
13 Performance Incentive
Incentives will be paid once a year along with the annual increment. All incentives
will be based on a pay-for-performance scheme. The performance incentive will be
paid as merit pay and added to the base salary. As per overall rating of the Reviewing
Officer, the appraiser will be authorised the following percentages of incentive:-
13.1 Performance Rating ‘A ‘- 20%
13.2 Performance Rating ‘B ‘- 15 %
13.3 Performance Rating ‘C ‘- 12 %
13.4 Performance Rating ‘D ‘- 8%
13.5 Performance Rating ‘E ‘- 0

14 Variable/ Fixed Component of Incentive

The amount set aside for annual increment and performance incentive will depend on
budgetary allocation. However the maximum amount that an associate can receive
asincentive or increment will be 20 % of gross salary. The amount of
increment/incentive that an associate can be paid will be as fixed ( i.e. assured )
component and variable ( ie as pay-for- performance ) component will depend on
the managerial cadre and allocated as below:-
Cadre Fixed Component Variable Component
Executive Level 75% 25%
Junior Management 60% 40%
Middle Management 40% 60%
Senior Management 25% 75%
15. Other Merit Incentive Options
The company may decide to give other forms of merit incentives. They can be
as follows:-
15.1 Annual Bonus
15.2 Team Incentives
15.3 Departmental Incentives
15.4 Ex gratia payments
15.5 Associate Stock Ownership plan

16. Debarment from initiation of Appraisals

Any associate who is under disciplinary proceedings will be debarred from
initiation of appraisals. In such cases the next supervisor in the line of reporting will
initiate.
17. Scrutiny of Appraisal Forms
All initiated Appraisals will be subject to scrutiny by the HR Department. The
HR Department will check the channels of reporting for its correctness,
completion of forms in all respects and objectivity in reporting. In case of
anomalies the HR Department will get the same rectified and then appropriately filed in the
personal file of the associate. The performance ratings will be separately recorded on a
nominal roll and
forwarded to Corporate HR duly authenticated by the Unit HR Head so as to impact
the same in the salary of associates.
18. Representations against Appraisals
Associates can represent against the rating or any other aspect of the Appraisal. All
representations will be made on an application. Comments of the appraiser,
Reviewing Officer and HR Department will be obtained on the same and sent to
CHRD for decision.
19. Performance/participation in Training Programmes
Participation in training programmes by associates is mandatory. The
participation/performance in training programmes will be evaluated and a record of
the same maintained by the HR Department. The same will be endorsed in the
Appraisal Forms. The performance in the training programmes will be considered
while deciding whether the associate is capable of being promoted and assuming
higher responsibilities.
METHODOLOGY
 METHODOLOGY

..

Fundamental to the success of any research project is sound research design. A

research designs purely and simply, the work or plan for a study that guides the
collection and analysis of the data. A good research design has the characteristics-
analysis, time required for research project and estimate of expenses to be
incurred. The function of research design is to ensure that the required data are
collected accurately and economically. It is a blueprint that is followed in
completing a study.

DATA COLLECTION

Both primary and secondary data collected for the study.

PRIMARY DATA:

Primary data collected through questionnaire & interview.

SECONDARY DATA:

Secondary data was collected through appraisal forms, organization profile,

materials provided by them & books on human resource management

SAMPLE SIZE:

In the matter of selection of sample,

METHOD OF STUDY : Questionnaires
SAMPLE SIZE : 40
SAMPLE CONSTITIENTS : Associates at various levels.
METHOD OF SAMPLING : Random Sampling Method
 DATA COLLECTION : All the data collected through Questionnaires.
TECHNIQUE USED : First Ranking Method

PERIOD OF STUDY

The project work took 45days of time to complete.

SCOPE OF THE STUDY

The study was intended to obtain information about:

• The Performance standards of an employee
• The quality of work in the organization since the quality of work depends on
the performance of the employee.
• Perception among employees regarding performance appraisal.

LIMITATIONS OF THE STUDY

1. 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.
2. The sample size is 35 only, which may not be sufficient to give the accurate
results.
3. The opinion of the respondents in CARE hospital is only considered for the
project study.
4. As CARE hospitals having number of branches, but the study confined to
NAMPALLY unit.

CHAPTER IV
DATA ANALYSIS
AND
INTERPRETATION
 1Q) Are you familiar with Performance Appraisal System?

SNO OPTIONS RESPONDENTS

1 Yes 25

2 No 5

RESPONDENTS

NO
17%

YES
NO

YES
83%

ANALYSIS:

From the above it is observed that majority of 83% of respondents

are familiar with Performance Appraisal System & 17% said they are not
familiar.
2Q) Is CARE hospitals implementing Performance Appraisal’s?

SNO OPTIONS RESPONDENTS

1 Yes 25

2 No 10

RESPONDENTS

NO
3%

YES
NO

YES
97%

ANALYSIS:

From the above it is observed that majority of 97% respondents said

that there is Performance Appraisals in their organization & 3% said that they
don’t know about that.
3Q) Which method is implemented by CARE Hospitals?

SNO OPTIONS RESPONDENTS

1 Traditional 6

2 Modern 24

20%

TRADITIONAL
MODERN

80%

ANALYSIS:

From the above it is observed that 20% of respondents said that

organization is implemented traditional method and remaining 80% said that
organization is implemented modern method.
4Q) Are you receiving feedback about your performance?

SNO OPTIONS RESPONDENTS

1 YES 25

2 NO 5

RESPONDENTS

NO
17%

YES
NO

YES
83%

ANALYSIS:

From the above it is observed that 83% of respondents said that

employees receiving their feedback and 17% did not receiving their feedback.
5Q) Who appraises your performance?

SNO OPTIONS RESPONDENTS

1 CHIEF 0

2 GM&AGM 3

3 MANAGER 10

4 HOD 17

RESPONDENTS

CHIEF GM&AGM
0% 10%
CHIEF
GM&AGM
HOD MANAGER MANAGER
57% 33%
HOD

ANALYSIS:

From the above it is observed that no response for Chief 10% of

respondents said Performance is appraised by their GM&AGM, 33% said
MANAGER, no response for manager &5% said HOD.
6Q) Do you need training to improve your performance?

SNO OPTIONS RESPONDENTS

1 YES 27

2 NO 3

RESPONDENTS

0%
NO
10%
0%
YES
NO

YES
90%

ANALYSIS:

From the above it is observed that 90% of respondents said they want to
training to improve their skills and remaining 10% don’t want to training.
7Q) Do you think new Performance Appraisal System is good or not?

SNO OPTIONS RESPONDENTS

1 GOOD 23
2 NOT GOOD 7

NOT GOOD
23%

GOOD
NOT GOOD

GOOD
77%

ANALYSIS:

From the above it is observed that 77% of respondents said present

Appraisal System is good, 23% said not good.
8Q) Do you improve your skills and knowledge through Performance
Appraisal

SNO OPTIONS RESPONDENTS

1 YES 27

2 N0 3

RESPONDENTS

NO
10%

YES
NO

YES
90%

ANALYSIS:

From the above it is observed that 90% of respondents said they

improve their skills and knowledge through Performance Appraisal and
remaining 10% not improving their skills and knowledge through
Performance Appraisal.
9Q) Is your superior helpful to you to improve your skills and
knowledge?

SNO OPTIONS RESPONDENTS

1 YES 29

2 NO 1

RESPONDENTS

NO
3%

YES
NO

YES
97%

ANALYSIS:

From the above it is observed that 97% of respondents said that their
superior help them to improve their skills and knowledge and remaining 3%
said that their superior does not help them.

10Q) For which of the following reasons Performance Appraisal System

 is used in the organization?

SNO OPTIONS RESPONDENTS

1 Promotions 3
2 Transfer to other places 15
3 Giving training 5

4 Feedback of 7
performance

RESPONDENTS

PROMOTIONS
10%
23%
INCREASE INCREMENTS

GIVING TRAINING
17%
50%
FEEDBACK OF
PERFORMANCE

ANALYSIS:

From the above it is observed that 10% of respondents said Appraisal

System used in the organization is for promotions, 23% said for feedback of
performance, 17% said for training, 50% said for increase increment.

11Q) Is performance Appraisal is necessary for every employee in the

organization?
 SNO OPTIONS RESPONDENTS

1 YES 29

2 NO 1

7%

YES
NO

93%

ANALYSIS:

From the above it is observed that 93% of respondents said that

Performance Appraisal System is necessary for every employee in the
organization, and remaining 7% said that it is not necessary.

12Q) The increment depends on the Performance Appraisal System, do

you agree with this or not?
 SNO OPTIONS RESPONDENTS

1 Yes 28

2 No 2

7%

YES
NO

93%

ANALYSIS:

From the above it is observed that 93% of respondents said they agree
with the Performance Appraisal System used for increase increment and 7%
not agreed.

13Q) How frequently do you think the Performance Appraisal should

be done?

OPTIONS RESPONDENTS
QUARTERLY 1
 HALF YEARLY 12
ONCE A YEAR 17

MONTHLY 0

0%
3%
QUARTERLY
40%
HALF YEARLY
ONCE A YEAR
57%
MONTHLY

ANALYSIS:

From the above it is observed that only 1% of respondents said

Performance Appraisal should be done quarterly, 40% said half yearly, 57%
said once in a year & 0% said monthly.

14Q) Are you satisfied with the last year increment?

 OPTIONS RESPONDENTS

SATISFIED 8

NOT SATISFIED 22

27%

YES
NO

73%

ANALYSIS:

From the above it is observed that 73% respondents said that they are
not satisfied with the last year increment and remaining 23% respondents are
satisfied with last year increment.

15Q) Is there a need of an expert person in H.R department for

Performance Appraisal
 SNO OPTIONS RESPONDENTS

1 YES 24

2 N0 6

20%

YES
NO

80%

ANALYSIS:

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

they need an Appraisal person in HR department & 20% said no need.
CHAPTER V

QUESTIONNAIRE
 ON
PERFORMANCE APPRAISAL SYSTEM

A brief questionnaire on performance on Performance Appraisal system at

QUALITY CARE INDIA LIMITED,NAMPALLY Unit, Hyderabad.

Iam SATISH.B, M.H.R.M student of Andhra University doing project in

your esteemed organization. I seek your kind cooperation in filling the
following Questionnaire, I solicit your frank and honest response to the
questions asked, I assure you that strict confidentiality shall be maintained at
the no stage will your responses be revealed to any one.

NAME: Designation: Department:

1Q) Are you familiar with Performance Appraisal System?

a) Yes b) No

2Q) Is CARE Hospitals implemented Performance Appraisal System?

a) Yes b) No

3Q) Which method is implemented by CARE Hospitals?

a) Traditional b) Modern

4Q) Are you receiving feedback about your performance?

a) Yes b) No

5Q) Who appraises your performance?

a) Chief b) GM& AGM

c) Manager d) HOD

6Q) Do you need training to improve your performance?

a) Yes b) No

7Q) Do you think new Performance Appraisal System is good or not?

a) Good b) Not good

8Q) Do you Improve your skills and knowledge through Performance

Appraisal?
a) Yes b) No
9Q) Is your superior helpful to you to improve your skills and knowledge?
a)Yes b) No

10Q) For which of the following reasons Performance Appraisal System is

used in the organization?
a) Promotions b) Increase increment

c) Giving training d) Feedback of performance

11Q) Is Performance Appraisal System is necessary for every employee in the

organization?
a) Yes b) No

12Q) The increment depends on the Performance Appraisal System, Do you

agree with this or not?
a) Yes b) No

13Q) How frequently do you think the Performance Appraisal should be

done?
a) Quarterly b) Half yearly

c) Once a year d) Monthly

14Q) Are you satisfied with the last year Increment?

a) Satisfied b) Not satisfied

15Q) Is there is a need of an expert person in H.R dept for Performance

Appraisal?
a) Yes b) No
 Care Hospitals
Self Appraisal Sheet

(For Associates in Grades G1 to G6)

Name of the associates: __________________Code No. _____________

Designation: __________________________ Department: __________

Reporting: _______________________ Date of joining: _____________

Note: Self appraisal is a reflective process. Read through all the

questions/ statements in the form. Review the whole appraisal period in your
mind

SELF APPRAISAL

1. Assignments handled during the period under review:

_________________________________________________________
________________________________

2. What overall rating would you objectively give yourself based on your
performance

Outstanding: Exemplary performance. Clear case of a model to

be adopted by others – hence generally respected by peer group.
Rarely need guidance. For exceed requirement of job. Growth
potential unlimited.
Very Good: Consistently perform beyond normal expectations
of role. Handle assignment with thoroughness and perfection.
Need guidance occasionally.
 Good: Complete routine assignment in time. Meet requirements
of competent associate. With a little more initiative could have
performed better.

Average: Need substantial improvement in all areas to meet

requirements of component associate.

Unacceptable: Not likely to meet requirement of component

associate.
3. Think about your abilities, training and interest. Do you feel that your
job fully utilizes your abilities? If not, which of our abilities could be
more fully utilized? How would your job content have to be changed to
accomplish this?
_________________________________________________________
__

4. Think about your other accomplishments during the past year which
may be related to your work. List your significant educational
attainment during this period. Also say if you have undergone any
training during the past
year._____________________________________________________
_________________________________________________________
_____
5. What parts of your present job interest you most?
_________________________________________________________
_________________________________________________________
_____
6. What parts of your present job interest you least?
_________________________________________________________
_________________________________________________________
_____

7. Comment on your utilization:

a. Quantitatively
____________________________________________________
____
B. Qualitatively
____________________________________________________
___
8. Looking ahead to the future, what kind of work would you like to be
doing during the next two years? Please specify any special training /
experience you would need to accomplish that
job.______________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_____________
9. Are you willing to move out of your present location in case
organization needs or an opportunity for career progression or job
rotation calls for if? If yes, please specify the preferred time frame,
whether immediate or after sometime.

10.Also, please indicate location preference.

a. B. C.
 11.What action do your feels should be taken during the coming year to
help in making your job more satisfying and your work more
productive?

a. By yourself
____________________________________________________
____________________________________________________
______
____________________________________________________
_

B. By your manager?
____________________________________________________
____________________________________________________
________
____________________________________________________
__

C. By higher Management?
____________________________________________________
____________________________________________________
____________________________________________________
____________

Signature of the Appraisee: ____________________

Signature of the Appraiser: ____________________
 PERFORMANCE APPRIASAL SHEET

Name of the associate: _______________________ Associate Code No.__________

Designation: _________________________ Department: ______________________

Date of Joining: ______________________ Location: _________________________

Reporting to: _____________________________ Present salary: _______________

Qualitative assessments
The associate is to be assessed on a 5 point scale with 1 high and 5 low. Any
ranking at 1 or 5 should necessarily be supported by instances. Some of the
factors might not be applicable to a particular function where ‘NA’ is to be
ticked. If there has been no opportunity to observe a factor, tick ‘NO’

Sl.No. Factors 1 2 3 4 5 NA NO Remarks

1 Work Planning
2 Commitment to the assignment
3 Interpersonal relations
4 Commitment to the
Organization
5 Professional/Tech knowledge
6 Willingness to assist others
7 Reporting
8 Cost consciousness
9 Adherence to Organization
practices
10 Adjustment to organization
environment
11 Ability to cope with
stress/tension
12 Efforts at self development
13 Accepting suggestions/criticism
14 Dependability
15 Written communication
16 Verbal communication
17 Judgment
18 Use of available aids
19 Client relationship

For associate controlling/leading a team, assessment on following factors is

required.

Sl.No. Factors 1 2 3 4 5 NA NO Remarks

1 Team leadership
2 Development of subordinates
3 Delegation
4 Credibility with colleagues/
subordinates
SPECIFIC STRENGHTS:
______________________________________________________________
______________________________________________________________
_____

SPECIFIC WEAKNESSES:
______________________________________________________________
______________________________________________________________
________

HINDRANCES IN THE PERFORMANCE OF JOB:

______________________________________________________________
______________________________________________________________
________

OTHER FUNCTIONS WHERE HIS STRENGTHS CAN BE UTILIZED:

______________________________________________________________
______________________________________________________________
________

DEVELOPMENT PLAN FOR THE ASSOCIATE:

______________________________________________________________
______________________________________________________________
________

TO BETTER PRESENT PERFORMANCE:

______________________________________________________________
______________________________________________________________
________
TO OVERCOME WEAKNESSES:
______________________________________________________________
______________________________________________________________
________
OVERALL RATING

Supervisor Comments Comments by associate

a) FINDINGS
b) SUGGESTIONS
c) CONCLUSION
 FINDINGS

 No proper awareness is created among all the employees of the

organization about Performance Appraisal System.

 Performance appraisal not been done for some categories of employees

of the organization.

 The Appraisal forms which designed for G1 to G6 & managerial level

employees are also distributed to all other employees in the organization.

 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.

 Performance feed back is not being implemented in the organization,

presently only few employees are receiving performance feedback.

 Most of the respondents preferring half yearly periodicity for

appraisals.

 No proper interaction between superiors and subordinates.

 32 members feel that they need an expert person for appraising the
performance.

SUGGESTIONS

 Hence awareness can be created among all the employees by

conducting classes and interactive sessions about the Performance Appraisal.

 The organization should cover all categories of employees for appraisal

system.

 Hence different forms should be designed for different categories of

employees of the Organisation.

 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 feed back and it should be

communicated for all the employees of CARE Hospitals.
 Organisation should give scope for interaction between superior and
subordinate.

 Organisation should appoint an expert in appraisal to make appraisal

authentic and foolproof.

CONCLUSION

Performance appraisal refers to the assessment of an employee’s actual

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

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

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.

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

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

Organization has to maintain proper communication between superior and

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

• SUBBA RAO.P, “HUMAN RESOURCE MANAGEMENT AND

INDUSTRIAL RELATIONS”, ‘Himalaya Publishing House’, 2007.
• ASWATHAPPA.K, “HUMAN RESORCE MANAGEMENT”, ‘Tata Mc
Graw Hill’, New Delhi, 2003.
• “RAO, T.V”,”APPRAISING AND DEVELOPING MANAGERIAL
PERFORMANCE”, ‘T.V.Rao Learning Systems Pvt Ltd’, Excel Books,
2003.
• “PREM CHADHA”,”PERFORMANCE MANAGEMENT”, ‘Macmillan
India’, New Delhi, 2003.

JOURNALS

• Harvard Business Review (Vol. 83, No.7)

• Indian Management (Vol. 44, Issue- 5)
• HRM Review (Vol. 5, No.1)

WEB SITES

• www.performanceappraisal.com

• www.google.com