TRADITIONAL METHODS:

Ranking Method Paired Comparison Technique Grading Method Graphic or Linear Rating Scale Forced Distribution Method Check List Free Easy Method Critical Incident Method Group Appraisal Method Field Review Method Ranking Method: It is the oldest simplest method of Performance Appraisal by which man and his performance are considered as an entity by the rater. No attempt is made to fractionalize the rate or his/her performance. The whole man, is compared with the Whole man, that is, the ranking of a man in a work group is done against that of another. The relative position of each man is tested in terms of his numerical rank. This is the simplest method of separating the most efficient from the least efficient. Paired comparison method: By this technique each employee is compared every trait with all other persons in pairs one at a time. With this technique, judgment is easier and simpler than with the ordinary ranking method. The results of these comparisons are tabulated, and a rank is assigned to each individual. This method is not suitable when a group is large because, in that case, the number of judgment becomes excessively large. Grading Method: In this method, all persons are grouped serially from best to least efficient for their qualities like extraordinary, best, average, bad, worst. Under this system, the rater considers certain features and marks them accordingly to a scale.

METHOD RATING REPORT Name of the Employee: _____________________________ Job: _____________________________________________ Division of Selection: _______________________________ Date: ____________________________________________

Name of the Evaluator: ______________________________ S.NO MERIT EXTRA ORDINARY BEST GOOD AVERAGE

Graphic Scale Method: In this method, a form is used in which an index of the qualities for performance of works is given. A scale is given in front of each merit on which this evaluation is noted that this merit is found in the employee to what quantity and how much of it he uses in working. On the basis, a progress report is made ready. Forced Distribution Method: Joseph Tiffin evolved this method after statistical work. This system is used to eliminate or minimize raters bias, so that all personnel may not be placed at the higher end or at the lower end of the scale. Under this system, it is assumed that it is possible and desirable to rate only two factors, via job performance and promo ability. For this purpose, a five-point performance scale is used without any descriptive statement. Employees are placed between the two extremes of good and bad job performances.

In addition to job performance, employees are related for promo ability. A three-point scale is often used for this purpose. a) b) c) Very likely promotional material. May or many not be promotional material. Very unlikely to be promotional material.

Questionnaire method (or) check-list method: Under this method, the rater does not evaluate employee performance, he supplies report about employee performance and final rating is made by the personnel department. Under this system, a check-list questionnaire is prepared in the form of a series of questions concerning the employee and his behavior. Evaluator reads the questions before the concerned person and the employee answers the questions in YES or NO. On the basis of the check-list completed by the evaluator the rating is made by the personnel department. The different statements of the employee may be awarded weights. The total of these weights gives the merits of an employee. The system is subjected to bias or prejudice of the evaluator. It is difficult to assemble, analyze and weigh a number of statements about employee characteristics and contributions. Therefore, this system is suitable only when supervisor has complete knowledge of job and employees. Free Easy Method: Under this method, the superior makes a free form, open-ended appraisal of an employee in his own words and puts down his impressions about the employee. He takes note of three factors: Relations with fellow superiors and personnel assigned to him. a) General organization and planning ability. b) Job knowledge and potential. c) Employee characteristics and attitudes. d) Understanding and application of company policies and procedures. e) Production, quality and cost of control. f) Physical conditions.

g) Development needs for future. The description is always as factual and concrete as possible. No attempt is made to evaluate an employee in a quantitative manner. Critical Incident Method: This method was conducted following research Conducted by the armed forces in the United States s during World War II. The essence of this system is that it attempts to measure workers performance in terms of certain events or episodes that occur in the performance of the rates job. These events are known Critical Incidents. The basis of this method is the principle is that there are certain significant acts in each employees behavior and performance, which make all the difference between success and failure on the job. The supervisor keeps a written record of the events (either good or bad) that can easily be recalled and used in the course of a periodical or formal appraisal. Feedback is provided about the incidents during performance review session various behaviors are recorded under such categories as the type of job, requirements for employees, judgment, learning ability, productivity, and precision in work, responsibility and initiative. The critical incidents are discovered after through study of the personnel working on job. The collected incidents are then ranked in order of frequency and importance.

Group Appraisal Method: Under this method, the rating is made not by a single evaluator, but by a group of supervisors who sit together and evaluate the performance of the employee. The group consists of the immediate supervisor and two or three other supervisor higher managerial personnel having knowledge of the employee under review. This method, in fact, is objective in appraisal and constructive in approach. It

does not allow the elements of bias. However, the system is time-consuming. Interview method (or) Field review method:

Under this method, supervisors are employee and make a record.

interviewed by an expert from the personnel

department. The experts ask the supervisor to obtain all the pertinent information on each They are also asked to suggest measures for improvement in employees performance. These notes are sent to the supervisor concerned for his approval or modification. Thus, the employee is rated as a whole

MODERN METHODS OF APPRAISAL:

Behaviorally Anchored Rating Scale. Management By Objectives

Behaviorally Anchored Rating Scales (BARS): In this approach the appraiser gives rating to the employees on the basis of items along a continuum, this focuses on specific job behaviors rather than traits or characteristics. BARS deal with definite, observable and measurable job behavior. The major advantage of this approach over graphic rating scales is that the scales and terminology are clear and demonstrably job relates, and thus is more likely to increase reliability as well as validity. Management By Objectives (MBO): Management by objectives can be described as a process where by the superior and subordinate managers of an organization jointly identify its common goals, define each individuals major areas of responsibility in terms of results expected from him and use these measures as guides for operating the unit contribution of each of its members. and assessing the

APPRAISAL ERRORS:
The use of ratings assumes that human observer is reasonably objective and accurate. As we have seen. Raters memories are fallible, and rater subscribe to their own

sets of expectations about people, expectations that may or may not be valid. These basis produce rating errors between the true ratings on employee deserve and the actual rating assign. Some of the most common types of rating errors are as follows: Halo Error: Halo Error is perhaps the most pervasive error in Performance Appraisal. Raters who commit this error assign their ratings on the basis global (good or bad) impressions of rates. This error may not lead to the exact performance appraisal. Contrast Errors: Contrast Error results when several employees are compared to each other rather than to an objective standard to performance. Regency Error: Regency Error results when supervisor assign rating on the basis of the employees most recent performance it is most likely to occur when appraisal are done only after long periods.

Spill Over Error: This method arises when past performance affects the present performance. Apart from the above three types of errors, there are some other errors like Stereotyping, Central Tendency. Stereotyping: Stereotyping involves forming a mental picture of a person on the basis of his/her age, appearance, caste or religion. Central Tendency: Central Tendency involves assigning average ratings to all the employees in order to avoid commitment.

Performance practices in Indian organizations:

Performance appraisal practices in Indian organizations varies from almost no appraisal to a sophisticated multipurpose, multi component, based appraisal system. In some of the small and medium size organizations, it is not uncommon to find that there are no formal mechanisms of appraising performance at all. And formally, senior executives give appraisal report of their subordinate to top management. There are other organizations that have performed appraisals aiming

simultaneously, rewards, job rotations, transfers

etc., 1. Larsen and Turbo Ltd., 2. State

Bank of India and most government organizations fall into this capital. On the other hand, there are organizations that have semi confidential formats that require the appraisee to state his personal accomplishments, behavior of other employees and the work related assessments by the superiors. Private and Public sectors companies tend to fall in this category. In between these, there are some organizations having appraisal systems with varying degrees of sophistication. Some have performance-cum trait based confidential based formats, where as some have appraisal open to the appraisee for discussions and reviewing to make his comments Foot note 1: taken from HRD Journal. Foot note 2: taken from Indian Management Journal. About 50% of the Indian organizations profess that the purpose of their appraisal is to regulate the employee behavior and to develop their capabilities. About 30% use appraisals for controlling and regulating employee behavior, where as 10% use it mainly for their development purpose. Professor T.V. Rao from a series of workshop and seminars arrived at certain conclusions regarding Performance Appraisal in India. They are as follows.

1. A large number of organizations continue to follow a trait based Format of Performance Appraisal. Most of these organizations Are, however dissatisfied with these formats due to high degree of subjectivity. 2. Few organizations have started experimenting with personnel function due to its increased recognition. 3. Most of the managers want to open system of appraisals. As on no system of appraisal entirely fulfills all requirements and tends to have some drawbacks or the Other, the personnel departments in the most organizations are still in the process of trying to find an appraisal model best suited to their requirements. Foot note: taken from Performance Appraisal in Appraising and Developing Managerial Performance by T.V. Rao Performance Appraisal has been one of the most debated management practices for several decades. It has generated a wide variety of viewpoints. Appraisal objectives and its linkages with pay and rewards will be attempted. Typically, performance appraisal schemes serve multiple objectives. It is centrally linked to the motivation of employees. It provides some of the essential components of effective motivational strategies; in particular, feedback that permits an employee to learn how he or she is performing; goal or objective-setting that specifies what the person should be doing; team building that allows the employee to participate along with peers and his superiors in solving problems that impede his productivity; and monetary incentives that rewards good performance. Performance appraisal leads to the identification of the training and development needs of the employees. It also has close links with other important areas of human resource management, in particular with selection, motivation, and succession planning. Performance data provides relevant information required for validating selection methods are bringing high performance into the organization.

STATEMENT OF THE PROBLEM

Performance appraisal is a method for evaluating the job performance of the employees in the organization. Lanco Cements limited is a new venture and has to grow many heights in the feature, to reach their goal they has to utilize the man power in a fully. Therefore the performance of the employees has to be increased so that periodical review over the performance of the employee has to be conducted where it states the performance appraisal system of the company. It is the best reason to conduct the study on performance appraisal of the company.

OBJECTIVES OF THE STUDY

To study the current Performance Appraisal System. To find out the opinion of the Appraise and Appraiser regarding the current appraisal system. To know how the Performance Appraisal System help in evaluating job behavior of employees.

NEED FOR THE STUDY

Performance appraisal is a formal, structured system of measuring evaluations an employees job related behaviors and outcomes to discover how and why the employee is presently performance on a job and how the employee can perform more effectively in future so that the employee, organization and society requirement the present study has been undertaken will all benefit. Under this

SCOPE OF THE STUDY

The study was confined to the aspect of performance appraisal only and other factors like welfare schemes, pay package, job satisfaction etc., were not studied. The study encompasses the manager and subordinate cadre level employees