Towards partial fulfilment of Post Graduate Diploma in Management. Report entitled --a Study Of Performance Appraisal System In Iffco. Report contains a comprehensive detail on one of the major function of an HR manager and performance of employees.
Towards partial fulfilment of Post Graduate Diploma in Management. Report entitled --a Study Of Performance Appraisal System In Iffco. Report contains a comprehensive detail on one of the major function of an HR manager and performance of employees.
Towards partial fulfilment of Post Graduate Diploma in Management. Report entitled --a Study Of Performance Appraisal System In Iffco. Report contains a comprehensive detail on one of the major function of an HR manager and performance of employees.
, A STUDY OF PERFORMANCE APPRAISAL SYSTEM IN IFFCO
Towards partial fulfilment of Post Graduate Diploma In Management
Guided by Submitted by Ms. Seema Gupta Anubha Mishra Roll No. 2010101020 Session 2011-2012 Faculty of PGDM
Babu Banarasi Das National Institute of Technology & Management Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India 2
Babu Babarasi Das National Institute of Management Faculty Of PGDM
Certificate
This is to certify that Research Project Report entitled A Study Of Performance Appraisal System In Iffco submitted by Anubha Mishra, (Roll.no20101020 ) of BBDNITM , Faculty Of PGDM Academic Session 2010-12 , as a record of bonafide Research Project for the partial fulfilment of Post Graduate Diploma in Management under guidance of Ms. Seema Gupta. I have examined the project work & certify it worthy of acceptance.
Ms. Seema Gupta Prof. Atul Kumar Singh Dean, PGDM
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ACKNOWLEDGEMENT
The entire project from the very idea of it to reality would not have been possible without the guidance and support of many people as no human efforts and attempt are completed unless somebody pave a right direction and right path so is the case with me in accomplishing my project. I am indebted to many and it is the high time to acknowledgement and appreciate them.
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PREFACE
This report is the result of research completed for the partial fulfilment towards the award of the degree in PGDM. my project contains a comprehensive detail on one of the major function of an HR manager and performance of employees. human beings are a resource to an organization. like any other material on economic resource they represent an investment whose development and utilization require managing. there is a fundamental truth in the clinch that people are an organizations most important asset and training provides full utilization of this asset. training is considered as a significant and indispensable tool for an organization in todays era because it makes the employee perfect for the job.
The report contains an introduction to the training in the theoretical concepts. the company profile of iffco is given in detail the secondary data of training practices in iffco is also given the finding of the study is given at the end.
At iffco contribution creativity and learning are respected as well as expected machines cannot replace the people and success of this organization is because of its employees for the employees to give their optimum output the organization is because of its employees for the employees to give their optimum output the organization has to be cooperative with the needs of its employees by making arrangements of training and development programs in the organization the skill and efficiency of the employees can be increased which in turn contributes to the production of the company. Anubha mishra 5
EXECUTIVE SUMMARY Literature on performance appraisal
I Rationale Performance appraisals are one of the most important requirements for successful business and human resource policy (Kressler, 2003). Rewarding and promoting effective performance in organizations, as well as identifying ineffective performers for developmental programs or other personnel actions, are essential to effective to human resource management (Pulakos, 2003). The ability to conduct performance appraisals relies on the ability to assess an employees performance in a fair and accurate manner. Evaluating employee performance is a difficult task. Once the supervisor understands the nature of the job and the sources of information, the information needs to be collected in a systematic way, provided as feedback, and integrated into the organizations performance management process for use in making compensation, job placement, and training decisions and assignments (London, 2003).
After a review of literature, a performance appraisal model will be described in detail. The model discussed is an example of a performance appraisal system that can be implemented in a large institution of higher education, within the Student Affairs division. The model can be applied to tope level, middle-level and lower level employees. Evaluation instruments (forms) are provided to assist you with implementation the appraisal system.
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CONTENT Page No. Introduction 7 Researches On Performance Appraisal 12 Company Profile 14 Financial Performance 17 Introduction 27 Performance Appraisal Methods 30 Aims Of Performance Appraisal 39 Contribution Enhancement Plan 42 Appraisal System In Iffco 45 Job Satisfaction 56 Performance Appraisal Co relation With Job Satisfaction 70 Research And Methodology 71 Objective Of The Study 72 Limitations Of Performance Appraisal 73 Analysis And Interpretation 74 Summary Of Findings 84 Recommendations 85 Conclusion 86 Bibliography 87
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INTRODUCTION
Performance evaluations have been conducted since the times of Aristotle (Landy,Zedeck, Cleveland, 1983). The earliest formal employee performance evaluation program is thought to have originated in the United States military establishment shortly after the birth of the republic (Lopez, 1968). The measurement of an employees performance allows for rational administrative decisions at the individual employee level. It also provides for the raw data for the evaluation of the effectiveness of such personnel- system components and processes as recruiting policies, training programs, selection rules, promotional strategies, and reward allocations (Landy, Zedeck, Cleveland, 1983). In addition, it provides the foundation for behaviorally based employee counseling In the counseling setting, performance information provides the vehicle for increasing satisfaction, commitment, and motivation of the employee. Performance measurement allows the organization to tell the employee something about their rates of growth, their competencies, and their potentials. There is little disagreement that if well done, performance measurements and feedback can play a valuable role in effecting the grand compromise between the needs of the individual and the needs of the organization (Landy, Zedeck, Cleveland, 1983).
Purpose Performance appraisals should focus on three objectives: performance, not personalities; valid, concrete, relevant issues, rather than subjective emotions and feelings; reaching agreement on what the employee is going to improve in his performance and what you are going to do (McKirchy, 1998). Both the supervisor 8
and employee should recognize that a strong relationship exists between training and performance evaluation (Barr, 1993). Each employee should be allowed to participate in periodic sessions to review performance and clarify expectations. Both the supervisor and the employee should recognize these sessions as constructive occasions for two-way communication. Sessions should be scheduled ahead of time in a comfortable setting and should include opportunities for self-assessment as well as supervisor feedback. These sessions will be particularly important for new employees who will benefit from early identification of performance problems. Once these observations have been shared, the supervisor and employee should develop a mutual understanding about areas for improvement, problems that need to be corrected, and additional responsibilities that might be undertaken. When the goals are identified, a plan for their achievement should be developed. The plan may call for resources or support from other staff members in order to meet desired outcomes. In some cases, the plan might involve additional training. The supervisor should keep in contact with the employee to assure the training experiences are producing desired impact (Barr, 1993). A portion of the process should be devoted to an examination of potential opportunities to pursue advancement of acceptance of more complex responsibilities. The employee development goals should be recognized as legitimate, and plans should be made to reach the goals through developmental experiences or education (Barr, 1993). Encouraging development is not only a supervisor's professional responsibility, but it also motivates an employee to pursue additional commitments. In addition, the pursuit of these objectives will also improve the prospect that current employees will be qualified as candidates when positions become available. This approach not only motivates current performance but also assists the recruitment of current employees as qualified 9
candidates for future positions (Barr, 1993). How to arrive? Reasons why need to be done Benefits of productive performance appraisals. - Employee learns of his or her own strengths in addition to weaknesses. - New goals and objectives are agreed upon. - Employee is an active participant in the evaluation process. - The relationship between supervisor and employees is taken to an adult-to-adult level. - Work teams may be restructured for maximum efficiency. - Employee renews his or her interest in being a part of the organization now and in the future. - Training needs are identified. - Time is devoted to discussing quality of work without regard to money issues. - Supervisor becomes more comfortable in reviewing the performance of employees. - Employees feel that they are taken seriously as individuals and that the supervisor is truly concerned about their needs and goals. (Randi, Toler, Sachs, 1992).
Pitfalls to Avoid When conducting performance appraisals on any level, it is important to keep in mind the common pitfalls to avoid. These pitfalls may include but are not limited to:
1. Bias/Prejudice. Race, religion, education, family background, age, and/or sex.
2. Trait assessment. Too much attention to characteristics that have nothing to do with the job and are difficult to measure.
3. Over-emphasis on favorable or unfavorable performance of one or two tasks which could lead to an unbalanced evaluation of the overall contribution. 10
4. Relying on impressions rather than facts.
5. Holding the employee responsible for the impact of factors beyond his/her control.
6. Failure to provide each employee with an opportunity for advance preparation (Maddux, 1993).
Legal Implications Any performance appraisal system used to make employment decisions about a member of a protected class (i.e. Based on age, race, religion, gender, or national origin) must be a valid system (an accurate measure of performance associated with job requirements). Otherwise, it can be challenged in the courts based on Title VII of the 1964 Civil Rights Act, the Civil Rights Act of 1991 and the Age Discrimination in Employment Act of 1975 (London, 2003).
Uniform Guidelines on Employee Selection 1978 is the controlling federal law in the area of performance appraisals. The Equal Employment Opportunity Commission (EEOC) requires that any measurement used to differentiate between employees must be valid and fairly administered. The Americans with Disabilities Act (ADA) suggests that performance appraisals for people with disabilities for people with disabilities will not be conducted any differently than those for other employees. Another important aspect to consider is the employees right to privacy. Employees must have complete access to their personnel files, but others should have controlled access. The records should be accurate, relevant, and current. 11
Rewards Effective reward systems are often hard to establish when creating performance appraisals. The question of how specific the reward, when the reward should be given, and how to reward group efforts can be a tricky subject to master. Our advice on this is to keep it simple. It is important to have an established reward system. However, rewards can be as simple as more autonomy on the job, praise for progress, additional professional development funding, and vacation time. The important aspect to remember when establishing reward systems is to be consistent. If two employees are being evaluated in the same way, their reward opportunities should reflect their evaluation outcomes.
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RESEARCHES ON PERFORMANCE APPRAISAL
Due to the growing focus on the personnels development, there is an increasing concern regarding the use of effective assessment methods. Performance appraisals are being used by a large number of organizations for assessing their employees performance and its effects on the organization as a whole. Similarly, universities make use of the assessment methods to assess the learning of their students. Despite the Popularity of performance appraisals there is an ongoing debate regarding the effectiveness of the assessment methods and use of performance appraisals (Schraeder, Becton & Protis, 2007). This believe can be further strengthen up by the research done by Clinton O & Stephen J, which shows that less that 20 percent of the performance appraisals are proved to be effective predictors of employees performances.
Positive impacts of Performance Appraisal: Performance appraisal has a very important role to play in managing individual and Is this essay helpful? Join OPPapers to read more and access more than 600,000 just like it!
get better grades group performances (CIPD). There is a considerable amount of agreement among managers and researches about the positive impacts of personnel rating and evaluation of performance. Performance appraisals can proved to be very helpful and successful if they focus primarily on the improvement of organizational performance as a whole, and especially if its attributes are in line with those of the 13
organizational aims and goals (Schraeder, et al., 2007). The significance of performance appraisals has been discussed in various studies by different authors, for example Larson (1984) described the feedback as integral part of the control system of any organization and this view point is also supported by other authors (Morris et al., 1991; DeCarlo and Leigh, 1996) in their findings, they defined performance appraisals as one of the most important job responsibilities of the line managers (Pettijohn, Parker, Pettijohn and Kent, 2001). There are number of potential benefits associated with the use of...
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COMPANY PROFILE IFFCO-A PRIDE VENTUREOF COOPERATIVES Indian farmers fertiliser cooperative limited(iffco) maintaining its creditable performance and position has spread its wings across the shores to emerge as a force to reckon with on the map of worlds cooperative movement.in ihe year 2009- 10,iffco showed commendable performance in all the spheres of its functioning,surpassing its own previous best records in the areas of production,sales,transporation,specfic energy consumption and overall performance.the equity capital of rs.6 lakhs contributed by the cooperatives in 1967 has risen upto rs.426 crores in 22009-10.
VISION AND MISSION Iffco has successfully accomplished its corporate plans,mission 2005 and vision 2010.it has now embarked upon another compre hensive ambitious plan vision- 2015,which will guide the societys efforts in emerging as a global leader.the salient features of vision-2015are: to emerge as a global leader in fertilisers production to cater to the food security need of the nation. maximising the synergies of the core business through downstream value additions and forward/backward integrations. enhancing presence in international markets through strategic joint ventures and synergistic acquistions. diverification in to other profitable business to maximize returns to our stakeholders. leveraging state of the art technologies and global best practices to retain its global competitiveness. 15
achieve ferilisers production/marketing target of 15 million tonnes per annum with an annual turnover of rs.30,000 crore.
PRODUCTION Iffco commissioned its kalol and kandla plants in Gujarat in early 1975 and subsequently added two more plants at phulpur & aonla in uttar Pradesh in the year 1981 and 1988 respectively and acquired dap/npk plant paradeep in 2005.the society produced the highest ever 81.98 lakh mt of fertilisers comprising all time high 43.24 lakh mt urea and the highest ever 38.74 lakh mt np/npk/dap during 2009-10.
MARKETING The marketing of iffcos products-npk/np/dap/urea is channelized through 39,862 cooperative outlets and 158 farmers service centres over 29 states/union territories across the country.during 2009-10,iffco has notched up a record sale of 118.27 lakh tonnes of fertiliser material comprising 63.35 lakh tonnes of urea and 54.92 lakh tonne of npk/dap/np/map.best ever marketing productivity also sprang to 7885 tonne/head.iffco meets almost one fourth of the countrys fertiliser demand.
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FINANCIAL PERFORMANCE
Iffco recorded a turnover of rs.16809 crore during 2009-10 while its pre-tax profit stood at rs.567.28 crore and profit-after tax at 401.10 crore and profit-after tax at 401.10 crore the society for the first time monetized its carbon credits by effecting its sale to a Spanish agency for a consideration of rs.4 crore under clean development mechanism(cdm) of united nations framework of climate change as a result of efficient foreign exchange management the society earned foreign exchange gain of rs.105 crore during the year the society declared a dividend of 20 percent for its shareholders for ninth year in a row.
INFORMATION AND COMMUNICATION TECHNOLOGY Ict initiatives kept pace with the developments taking place in the organisation the applications like maintenance management system financial management system e- procurement marketing applications workflow applications have been further augmented with enhanced functionalities. In recognition of iffcos initiatives prestigious awards viz top 10 green it enterprise award cio 100 award ciol enterprise connect award and great mind challenge for business award were bestowed on iffco.
COOPERATIVE DEVELOPMENT The society has grown in strength and stature from a modest membership of 57 in 1967-68 to 39862 societies benefiting 5 crore farmers to encourage cooperatives and cooperative development work iffco presents eminent cooperators with sahakarita bandhu award and sahakarita ratna awardevery year and pt Jawaharlal Nehru memorial iffco lecture is arranged to commemorate the 18
cooperative week celebration cooperative development programmes are arranged for co-operators of other countries.
Iffcos chairman has been elected for the second time on the global board of international cooperative alliance (ica).iffco has also received the first dot coop global award for cooperative excellencein recoginition of its efforts for providing services to its cooperative members.iffco has carved out a niche for itself efforts by upholding cooperative values and strong cooperative identity.
CORPORATE SOCIAL RESPONSIBILITY(CSR) Iffco has undertaken several social activities in the areas of community development environment protection health-care/medical facilities etc the society continued to galvanise its efforts at the development of model agricultural villages with an aim to bring about overall up liftment in the living standards of rural community through integrated rural development with particular emphasis on agriculture development ,creation of drinking water facilities medical and veterinary check up.
Various promotional and extension programmes organised during the year 2009-10 focussed on improving soil health promoting balanced use of fertiliser in this period,5292 field programmes,1118 sale point personnel training programmes,153 crop seminars were organised seed multiplication programme was undertaken on 1303 ha.during rabi 2009 2009-10,910 agriculture campaigns were organised while 1,51,41rs on agri3 soil samples were analysed. Twenty four special projects on agriculture,social and community development programmes in various ststes are in progress.these projects aim at watershed 19
management,agriculture development and micro enterprises,assisting the small farmers and self-help groups in earning livelihood.the society has instituted 18 chairs at agricultural universities/cooperative institutions in the disciplines of agronomy,soil science,agroeconomics ,agricultural extension,cooperation and fertiliser technology to provide a link between these institutions in areas of research,education and extension.to strengthen the village societies.205 storage-cum-community centres are in operation and nine more centres are in various stages of completion.these centres are utilised for storage of fertilisers and agricultural inputs,apart from providing venues for organising agricultural extension activites following trusts/cooperatives to promote its csr initiative:
IFFCO KISAN SEWA TRUST This trust was established to provide relief and rehabilitation to the victims in the event of natural calamities like floods,earthquake,cyclones,fires,landslides and droughts etc.the trust undertakes a variety of activites to assist needy farmers in getting medical assistance,organising eye camps,health camps,cancer detection camps,providing medical equipment,arranging for blood through red cross society and financial assistance to various hospitals for the treatment of farmers.
INDIAN FARM FORESTRY DEVELOPMENT COOPERATIVE LTD(IFFDC) Iffdc was promted in 1993 with the prime objective of development of wasteland for social forestry.iffdc initially implemented afforestation and rural development projects in uttarpradesh,Madhya Pradesh and rajasthan.with the passage of time,the area of operation has been extended to uttarakhand,Jharkhand,Orissa,Chhattisgarh,Andhra Pradesh,west Bengal,assam,tamilnadu and Maharashtra.afforestation in 27000 20
hectares of wasteland had been achieved by promiting 146 village level primary farm forestry cooperative societies in various states of the country.iffdc projects helped in enhancing socio-economic status of the villagers and has been hailed by state and central government and won many laurels and awards.
COOPERATIVE RURAL DEVELOPMENT TRUST(CORDET) Cooperative rural development trust provides practical training to farmers to improve their skill in farming and allied areas i.e. animal husbandry,horticulture,bee- keeping,pisciculture,printing,tailoring,fruit and vegetable preservation etc.the trust operates from phulpur in uttarpradesh and from kalol and kandla in Gujarat.it also provides free soil testing facilities to the farmers.during 2009-10,cordet tested 99564 soil samples and organised 249 training programmes benefiting more than 14314 farmers including women from various states.
IFFCO FOUNDATION Iffco foundation,a think tank ofiffco,provides support to farmer members in agricultural development through technology transfer.it provides forum for exchange of thoughts on issues relating to food security and agricultural development at the global level especially in saarc,African and latin amaeican countries,which has opened avenues for larger cooperation among farmers at the global level.
IFFCOS ASSOCIATES AND SUBSIDIARIES A number of associates and subsidiaries has lent credibility and strength to iffco.performance of these ventures is briefly given as under:
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IFFCO-TOKIO GENERAL INSURANCE COMPANY During 2009-10,iffco-tokio recorded a gwp of rs.1,639.56 crores andearned a profit before tax of rs.38.61 crores.the unique rural products of the company like sankatharan bima yojana,barish bima yojna,kisan suvidha bima yojna,mausam bima yojna cater to the insurance needs of the farming community.itgi with its micro insurance initiative like janta bima yojna,jansuraksha bima yojna,janwasthya bima yojna and mahila suraksha bima yojna,has been able to take forward the message and benefits of insurance to underprivileged international labour organization (ilo) to carry out the cattle insurance project using rfid technology called pashuhan bima.
OMAN INDIA FERTILISER COMPANY Iffco contributed 25 percent in the equity of this company.during the year ended 31 st
December,2009,omifco had performed very well.the company produced 20.29 lakh tonne urea,1.25 lakh tonne surplus ammonia with its revenues at $322 million and profit after tax at us $146 million.
IFFCO CHHATTISGARH POWER LIMITED(ICPL) The society made its foray into power sector with the mission of empowering the agricultural sector with more power.icpl was set up in joint venture with cseb for establishing a pit-head power project of 1320 mw capacity in district surguja(Chhattisgarh) at an estimated cost of rs.7500 crore.iffco will hold a stake of 74 percent.icpl has signed power purchase agreement(ppa) with Chhattisgarh state electricity board (cseb)for 90 percent of net power to be produced from the project and balance power would be sold to other states.the project activites have started and major inputs like fuel,water be sold to other states.the project activites have 22
started and major inputs like fuel,water and land have been tied up.the major clearance like environment,forest etc are expected soon.the project has been grantedin principle approval of mega power status by the ministry of power.commercial operation is scheduled to start in the year 2013-14.
IFFCO KISAN SANCHAR LIMITED(IKSL) Iffco kisan sanchar limited (iksl) was incorporated in april,2007 with the objective of empowering farmers with pertinent information to improve decision making ability towards sustainable agriculture and better living.the society has invested an amount of rs.3.65 crore to acquire 72.99 percent equity in iksl.during the financial year 2009- 10,iksl has further consolidated its activites in 18 states by providing location specific,time sensitive information and alerts to its rural subscribers.the subscriber base of iksl at the end of march 2010 was 50 lakh,which predominantly focuses upon rural community.about 22000 cooperative societies have become a part of this channel in terms of diversifying their business in to this emerging telecommunication in rural india. 23
NCDEX/NCMSL Iffco stepped in to the area of commodity exchange by acquiring 12 percent stake in ncdex.the exchange offers contracts in 50 commodities which includes 27 agriculture commodities,7bullion,6 metals,6 energy and 3 polymers and 1 environment(carbon credit).iffco holds stake in national collateral management services limited (ncmsl),which provides procurement,storage and preservation,quality testing and certification,collateral management and information services.
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KISAN INTERNATIONAL TRADING FZE(KIT) Kisan international trading fze(kit) was set up as a wholly owned subsidiary of the society in dubai in april 2005.the outfit has successfully completed its fifth financial year of operation.kit has become a leading international trading organization,which handles the import and export of various fertilisers and fertiliser raw materials and intermediates.
JORDAN INDIA FERTILIZER COMPANY(JIFCO) Iffco and Jordan phosphates mines company ltd had formed a limited liability joint venture company,namely Jordan india fertilizer company(jifco) in amman,Jordan under the free zonesystem to st up a phosphoric acid plant of 1500 tonnes perday p2o5 capacity at eshidiya in Jordan.in this company,iffco holds 52 percent equity,while jpmc holds 48 percent equity.jpmc will make available the required quantity of rock phosphate for the project.the project has obtained necessary approvals and clearances including environmental clearance from the government of Jordan to start construction activities at site.
IFFCO KISAN SEZ LIMITED Iffco is also setting up a multi-product iffco kisan sez at Nellore(Andhra Pradesh) with primary focus on food processing and agri based industries .the formal approval for development,operation and maintenance of the multi product special economy zone,had been received from the governmentof india.the master plan of the sez has been finalised.letters of intent have been received from various overseas and 25
domestic investors for initiating their operations in sez.one of the main activites in this is setting up of the most modern integrated dairy project. INDIAN POTASH LIMITED(IPL) Ipl is primarily engaged in trading of imported potassic and non-potassic fertilisers for domestic consumption.ics has capacity to produce 660,000 mt of phosphoric acid (as p2o5) per year.the company exported 256,561 mt of p205 to iffco in the year 2009,which is about 39 percent higher than 2006.
LEGEND INTERNATIONAL HOLDING,AUSTRALIA The project in Australia aims at commercial mining of rock phosphate.the rock phosphate supplies from legend will ensure availability of raw material for paradeep plant without any constraint.the rock phosphate supplies arriving over the years from legend will help in production of quality phosphatic fertilisers in the interest of farmers.
AMERICAS PETROGAS INC.CANADA After diversifying in to insurance,power,rural mobile telephony and commodity exchange,iffco has ventured in to potash as well as gas and oil exploration sectors by becoming an equity partner with 50 percent buy back to potash,alongwith its associate in the Canadian company,growmax agri corp (growmax) and Americas petro gas inc. Iffco has also entered in to a memorandum of understanding(mou) with phoschem,usa and phosagro,Russia for import of dap/npk,which will ensure uninterrupted supply of these essential fertilisers to the member societies. 26
With its strong cooperative character iffco will continue to lead from the front with its pioneering efforts and strong financial base.a global fertiliser giant iffco believes
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INTRODUCTION
Performance Appraisal
The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management.
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 - not more than 60 years ago.
Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things historical, it might well lay claim to being the world's second oldest profession!
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 28
chance of ensuring that the judgements 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. Little consideration, if any, was given to the developmental possibilities of appraisal. If was felt that a cut in pay, or a rise, should provide the only required impetus for an employee to either improve or continue to perform well.
Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed.
For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance.
These observations were confirmed in empirical studies. 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. 29
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.
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PERFORMANCE APPRAISAL METHODS
1. The Critical Incident File
The Critical Incident File is a performance appraisal method in which the manger writes down positive and negative performance behavior of employees during their employement period.this file is a form of documentation.
2. The Rating Scales
The Rating Scale is a form on which the manager simply checks off the employee's level of performance. The possible eveluated areas include quantity of work, quality of work, dependability, judgment, attitude, cooperation and initiative.
3. Behaviorally Anchored Rating Scales (BARS)
BARS is a method combining rating and critical incidents. Is is more objective and accurate. Rather than having excellant, good, average. the form has several statements that describe the employee's performance, from which the manager selects the one that best describes the employee's performance for that task.
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4. Ranking
Ranking method is used to evaluate employee performance from bets to worst. Under this method, the manager compare an employee to another employee, rather than comparing each one to a standard measurement. A predetermined percentage of employees are placed in performance categories for e.g excellent-5%,good-10%, average-15%.
5. Management By Objectives (MBO)
MBO is a process in which managers and their employees jointly set objectives for the employee, periodically evaluate the performance, and reward according to the result
6. The Narrative Method
his method requires the manger to write a statement about the employee's performance. Managers may be allowed to write whatever they want, or they may be required to answer questions about employee's performance
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OBJECTIVES OF PERFORMANCE APPRAISALS
1. Objectives
o The main objective of performance appraisals is to measure and improve the performance of employees and increase their future potential and value to the company. Other objectives include providing feedback, improving communication, understanding training needs, clarifying roles and responsibilities and determining how to allocate rewards.
Provide Feedback
o The feedback received by the employee can be helpful in many ways. It gives insight to how superiors value your performance, highlights the gap between actual and desired performance and diagnoses strengths and weaknesses as wells as shows areas for improvement.
o The method of performance appraisals helps superiors strengthen relationships and improve communication with employees.
Training Needed
o These appraisals also identify the necessary training and development the employee needs to close the gap between current performance and desired performance.
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Clarify Expectations
o Performance appraisals should clarify roles, responsibilities and expectations of all employees.
Allocate Rewards
o Performance appraisals reduce employee grievances by clearly documenting the criteria used to make organizational decisions such as promotions, raises or disciplinary actions.
Performance Appraisal Process
The performance appraisal process is a process that evaluates employee performance. Normally it compares quality, quantity, cost, and time. Some of the things that performance appraisal are used to do would be. Give something tangible to the employee regarding their work performance. Shows what training employees need. Determines what the employees raise might be.
There are some other things that performance appraisals do, these are just some of them. 34
There are some procedures that you should put in work at your work place. This will help the employees know what you are expecting of them, and also establish a standard within your work that everyone will be able to understand and follow. Some of these things would be listed here. Establishing performance standards Communicate standards and expectations Set up a system that measures actual performance Compare employee with the standards implemented Discuss results with employee Make a decision on what you are going to do, or take corrective action.
Now as an employee, you should not get nervous when you hear anything about a performance appraisal or review. As long as you have tried as hard as you can and done everything in your capability to do your job duties, you can take what you hear from you employer and use it to help yourself. You can take what your employer tells you about the appraisal and use it to help you do your job better. 35
Now most Performance Appraisals are held annually, but it can be held whenever your employer sees fit. Most companies hold their evaluations once a year because they feel that it is too time consuming. Some feel that having it twice a year is better because you can let the employee know if they are doing good, or if they are doing something that they could do better you can tell them sooner then if it was help once a year. One good idea is when you are doing the evaluations with the employees it is really nerve racking for both the employee and for you. One good idea would be to make your it is a private room and you can handle the evaluation without interruption and where the employee can feel comfortable asking questions.
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If you are an employer you can find many examples of great strategies in creating a good performance appraisal process all over the Internet. There are many companies that just make and implement these appraisals in your work place and train your managers on how to give them out and will show you the best way to teach your employees about what you are expecting from them.
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TECHNIQUES OF PERFORMANCE APPRAISAL
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nce a Year Overview
Self Appraisal
Performance Review - Preparation
Performance Review - The Meeting
How to Complete a Performance Appraisal Form
Analysis for Improving Performance
Active performance appraisal conversation
Performance appraisal feedback
Performance Consulting: Moving Beyond Training
Writing performance appraisal
Performance Appraisal Training
How to Measure Employee Performance
FAQ about Performance Appraisal
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AIMS OF PERFORMANCE APPRAISAL
The following aims might be considered when examining a performance appraisal system: Use reliable,fair and objective measures of performance,compare actual with planned performance,and provide feedback to appraise. Make provision for the allocation of both extrinsic rewards (performance related pay) and intrinsic rewards (opportunity to enhance ones skills) followingthe assessment process. Recognize that performance management is the heart of the general management process.
E-PERFORMANCE MANAGEMENT Performance management is another area which has been e based the use of technology in performance management tends to increase productivity enhance competitiveness and motivate employees this is possible through two ways 1-.technology may facilitate measuring an individuals performance via computer monitoring activites, 2-technology become a tool to facilitate the process of writing reviews or generating performance feedback. This particular technological approach occurs more often in the context of jobs that involves personal judgement and high discretion. Technology can be applied in performance management in several ways. In the first place routine or low discretion jobs can be subject to computerized performance monitoring (cpm) system that helps generate performance data. 40
Second softwares are available that help generate appraisal forms and their accompanying narrative. Third,performance management system can be integrated with an overall enterprise resourse planning(erp) software system.this approach helps hr professional to identify high performers,spot skill and competency gaps and to analyse pay relative to performance.with this information being available,hr manager can plan for training,coaching and education. Fourth,firm intranets and internet may also help performance-management process. Fifth,stand alone software packages are great help in performance management system.some of these packages are relatively inexpensive and easy to use the greatest benefits of appraisal software are the elimination of paperwork and simplification of the logistics for evaluators,works and administrators.
MECHANISM The evaluation under cep consist of following steps: 1.appraiser does the rating after considering individual assessment parameters of every employee. 2.scores are given against each assessment parameter of an individual in the rating column on the basis of 5-point rating. 3.rating is reviewed with the reviewer. 4.total score is computed by adding all the scores. 5.the rating category corresponding to the appropriate range of total scores is selected as overall final performance rating of employees from rating scale table. 41
6.the individual development form is filled by the appraise,which is further utilized for training and development needs of employees,besides giving a direction to his/her career growth in the organization. 7.after completing the appraisal,a constructive feedback should be given to the appraise by the appraiser in presence of reviewer. 8.finally,contribution enhancement plan discusses rating for deciding upon the performance rewards in the form of: 9.annual rewards 10.promotions
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CONTRIBUTION ENHANCEMENT PLAN
Contribution enhancement plan or cep is a process,which will enable organization to improve organizational contribution through enhanced contribution of individual.it aims to establish formal individual objectives and to review subsequent contribution in order to reinforce successful behaviours,to correct shortfalls and to plan training and development activities.the system will ensure that all management staff employees are aware as to what is expected from them.this is a developmental plan for the improvement in contribution of executives towards organizations or sbus achievement of objectives and its development.it is categorized in to 2 parts: -contribution enhancement plan(cep)A -contribution enhancement plan(cep)B Contribution enhancement plan (A) evaluates the contribution of an individual and decides revision in fixed pay and contribution enhancement plan(B) is concerned with variable pay.
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Objectives of cep
1-to establish formal contribution standards. 2-to establish a system that is fact based and minimizes subjectivity in the assessment of an individuals contribution. 3-it should provide constructive feedback for development of an employee. 4-enable the individual to evaluate his/her own areas of strengths and areas of improvement for being a better manager.
Applicability of cep
1-the system is applicable to grade v and above employees of the company. 2-setting of 3 to5 bbos,which are measurable. 3-related to area /position in which employees operates. 4-evaluation of contribution and focus on employee development.
Business building objective (bbos)process
Business building objectives (bbos)are mutually agreed objectives between an employee and his/her superior.these are tangible business targets,which are measurable. The first stage is for the person initiating the s identification and review processes review cycleto understand the business plan so that there is clarity about the 44
direction and priorities of the organization.this will help ensure that individual bbos support the overall business plan.
Bbo, identification and review processe
Bbos needed to be established the light of the annual business plan.the set objectives must be relevant in context with each individual role. The employees must prepare in advance his/her draft objectives for the next year and contribution against objectives set for the past year.the same need to be carried by the appraisee for discussion with the appraiser.the appraiser will also come prepared with bbos(both past and future)for the employee.at the meeting they will discuss the year ahead and seek agreement on various objectives.during the same meeting they will also discuss the contribution against the past yea Rs bbos.once the objectives for the next year are set and agreed upon the same need to be communicated to the employee in writing.the employee shall be evaluated against bbo during mid-year at the end of assessment year. Bbos identification,assessment and review of contribution,assessment of traits and skills training and development needs and plans will be joint responsibility if the appraise and the appraiser.the reviewer needs to be satisfied that the key elements of the process have done correctly.
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APPRAISAL SYSTEM IN IFFCO Set up of Zonal Office ,Lucknow Zonal office
SET UP OF ZONAL OFFICE, ZONAL OFFICE
SOS
UP BIHAR JHARKHAND UTTARAKHAND AOS AO AO AO MEERUT PATNA DEOGHER HARIDWAR SAHARANPUR GAYA RANCHI DEHRADUN MORADABAD MUZAFRPUR BARELLY BENGLORE LUCKNOW PURNEER AGRA JHASI KANPUR ALLAHABAD FAIZABAD VARANASI GORAKHPUR 46
INDIAN FARMERS FERTILISERS CO-OPERATIVE LTD Cadre-wise grade-wise count ofemployees
Grade code C1 D1 eo fo F1 go G1 G2 H1 H2 io jo J1 ko lo L1 m o qo tot al Cadre desc. administration 1 1 Coordination/s teno 5 5 Deo-cum- assistant 4 6 1 2 2 1 16 Drivers 1 3 4 8 F&a 1 3 8 17 3 32 Helper(fsc) 16 16 3 1 36 marketing 1 2 8 25 34 12 11 1 15 14 1 12 4 Oa/safai karam 4 3 3 10 Pers/ir 2 1 1 4 Power plant 1 1 Public relations 1 1 salesman 16 28 8 5 8 1 1 67 47
Grade code D1 eo Fo F1 Go g1 H1 H2 io Jo J1 ko Lo L1 no total Cadre desc. Coordination/steno 1 1 Deo-cum-assistant 2 1 1 1 1 6 Drivers 1 1 2 F&a 1 4 4 9 marketing 1 2 10 8 5 1 4 4 2 37 Oa/safai karam 2 1 2 1 6 Pers/ir 1 1 Salesman 1 1 Systems 1 1
Total: 1 2 11 12 10 4 6 1 1 6 2 4 1 2 1 64
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UTTARAKHAND
Unit:693 UTTARAKHAND STATE run rate:12/07/2011 16:04 Grade code D1 eo fo F1 go G1 H1 io jo ko lo po total Cadre desc. administration 1 1 Coordination/steno 1 1 Deo-cum-assistant 1 1 F&a 1 1 1 3 Helper(fsc) 1 1 1 3 marketing 1 2 1 2 2 2 1 1 12 Oa/safai karam 1 1 Pers/ir 1 1 salesman 3 3 Total: 1 2 1 4 4 3 4 1 2 1 2 1 26
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JHARKHAND
Unit:244 JHARKHAND STATE run date:12/07/2011 16;04 Grade code eo Fo F1 go g1 H1 lo mo total Cadre desc. Coordination/steno 1 1 Deo-cum-assntista 1 1 1 3 F&a 1 1 1 3 marketing 1 1 3 2 2 9 Pers/ir 1 1 Total 1 1 4 2 2 5 1 1 17
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DURATION The revised pay structure will be valid for a period of ten years with effect from 01.01.2007 i.e. from 1.1.2007 to 31.12.2016 and shall continue to remain in force until replaced by a fresh order.various benefits of this pay. revision will be effective from the date(s).as mentioned under the respective headings. PAY SCALES(OFFICER CATEGORY) The existing scales of pay shall stand revised as under with effect from 1 st January 2007. GRADE PRE REVISED SCALE OF PAY REVISED SCALE OF PAY (rs.) (rs.) B 25750-650-30950 75000-100,000 B-1 23750-600-28550 70000-90,000 C 22500-600-27300 65000-80,000 C-1 21500-600-26300 60,000-75,000 D 20000-500-25000 51,300-73,000 E 18800-450-23900 43,200-66,000 F 17500-400-22300 38,000-62,000 F-1 16000-400-20800 35,000-58000 G 14500-350-18700 32,000-54,500 G-1 13500-350-18050 29000-50,500 G-2 10750-300-16750 23,000-46,500 H-1 9100-250-14600 20,000-40,500
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FITMENT METHOD The fitment method for fixing the basic pay in the revised scale in respect of officers who were on the rolls of the society as on 31.12.2006 would be as under: A. basic pay in the pre-revised scale as on 31/12/2006,plus. B. Personal pay,if any as on 31/12/2006 which qualifies for the dearness allowance and other allowances plus. C. Dearness allowance at the rate 78.2% of pre-revised basic pay plus. D. 30% of above (a,b,and c) as fitment benefit,plus. E. Paradeep personal pay if any which does not qualify for any allowance.
PAY SCALES(WORKERS CATEGORY) The existing scales of pay shall stand revised,as under with effect from 1 st
January,2007.
SN GRADE PRE REVISED SCALES OF PAY(RS) REVISED SCALES OF PAY(RS)
8 M 5300 90 7190 12000 19200 9 N 4900 80 6580 11000 17600 10 O 4100 70 5570 9500 15300 11 P 3300 50 4100 7500 12100 12 Q 2500 40 3140 6700 9300 13 R 1800 30 2280 4100 6700
FITMENT METHOD The fitment method for fixing the basic pay in the revised scale in respect of employees who were on the rolls of the society as on 31/12/2006 would be as under. A. basic pay in the pre-revised scale as on 31/12/2006.plus. B. personal pay if any as on 31/12/2006 which qualifies for the dearness allowance and other allowances,plus. C. Dearness allowance at the rate 78.2% of pre-revised basic pay plus. D. 30% of above(a,b,and c) as fitment benefit plus. E. Paradeep personal pay if any which does not qualify for any allowances.
POWERS AND GUIDELINES FOR WRITING ANNUAL APPRAISAL REPORTS(AARS)
= the appraisal report must be complete in all respects before the 30 th april of every year for the preceding assessment year(ie.april to march). = the lowest level of the reporting officer with reference to an appraisee shall be as under:
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APPRAISEE
(a) for employees in grade H2 and below- not below F1 grade. (b) for officers in grade F1 and below-not below F grade. (c) For officers in grade F and above-the immediate superior officer and above in hierarchy. (d) Md would be the reporting officer for the AARS of functional directors. = the assessment of the reporting officer shall be reviewed by the next higher authority in the hierarchy.in case the reviewing officer differs with the assessment of the appraising officer.he should cite supporting data for the same. The AARS of officers working in vigilance deptt. In units/division/head/zonal head/dy cvo as the case may be and will be reviewed by cvo. = the AARS in respect of officers having the overall rating of outstanding or poorin grade h1 and and below shall be reviewed by sr ed/ed concerned and accepted by functional director.out stading or poor ratings in respect of officers in grade G2 and above shall be reviewed by by functional director and accepted by md. = caution should be exercised at all levels against the tendency to under rate or over rate ,so as to b fair to the appraise and his colleagues in the organisation. = poor rating will entail adverse remark and fair rating will call for improvement. These should be brought to the notice of the concerned employee.fair report shall be accepted by concerned director. = the AARS in respect of employees in grade F and below shall be maintained by the p&a deptts.of the concerned unit/division head office.the AARS in respect 55
of employees in grade e&d.shall be maintained in the office of director (HRD).the AARS in respect of employees in grade C1 and above will be maintained in mds office. = the final accepting authorities for AARS shall be as under :- APPRAISEE ACCEPTING AUTHORITY (a) For H2 and below :- sectional/deptt head not below grade D. (b) Grade H1to G : unit head in case of units. : sr ed/ed/sr gm/gm,in case of ho & mkco :for field staff,mkd.
:zonal head in case of mktg.
(C) grade F1 TO D : concerned functional director (excluding zms & smms):mkd for marketing &marketing tpt/systems cadres. :fd for fianc cadre. : director (tech.) for technical cadre. :darector (HRD) for p&a,vig.,security & hospital cadre. = reports of officers in grade d,e,f & f, of transportation cadre & pr in units/mktg. Will be reviewed by sr. Ed(tpt). And will be accepted by director (technical)/mkd respectively. = reports of officers in grade d,e,f,&f1 of systems in units/mktg.will be reviewed by ed(msd&it) and will be accepted by director (technical) /mkd respectively. =reports of executives in grade C1& above in f& a and p & a shall also be reviewed by fd and dir.(HRD) respectively,before final acceptance by md. 56
JOB SATISFACTION
Job satisfaction describes how content an individual is with his or her job. The happier people are within their job, the more satisfied they are said to be. Logic would dictate that the most satisfied (happy) workers should be the best performers and vice versa. This is called the "happy worker" hypothesis.However, this hypothesis is not well supported, as job satisfaction is not the same as motivation or aptitude, although they may be clearly linked. A primary influence on job satisfaction is the application of Job design,which aims to enhance job satisfaction and performance using methods such as job rotation, job enlargement, job enrichment and job re-engineering. Other influences on satisfaction include management styles and culture, employee involvement, empowerment, and autonomous work position. Job satisfaction is a very important attribute and is frequently measured by organizations. The most common technique for measurement is the use of rating scales where employees report their thoughts and reactions to their jobs. Questions can relate to rates of pay, work responsibilities, variety of tasks, promotional opportunities, the work itself, and co-workers. Some examinations present yes-or-no questions while others ask to rate satisfaction using a 1-to-5 scale, where 1 represents "not at all satisfied" and 5 represents "extremely satisfied."
Definition Job satisfaction can simply be defined as the feelings people have about their jobs. It has been specifically defined as a pleasurable (or unpleasurable) emotional state resulting from the appraisal of ones job,an affective reaction to ones job, and an 57
attitude towards ones job. These definitions suggest that job satisfaction takes into account feelings, beliefs, and behaviors.
History One of the biggest preludes to the study of job satisfaction was the Hawthorne studies. These studies (19241933), primarily credited to Elton Mayo of the Harvard Business School, sought to find the effects of various conditions (most notably illumination) on workers productivity. These studies ultimately showed that novel changes in work conditions temporarily increase productivity (called the Hawthorne Effect). It was later found that this increase resulted, not from the new conditions, but from the knowledge of being observed. This finding provided strong evidence that people work for purposes other than pay, which paved the way for researchers to investigate other factors in job satisfaction.
Scientific management (aka Taylorism) also had a significant impact on the study of job satisfaction. Frederick Winslow Taylors 1911 book, Principles of Scientific Management, argued that there was a single best way to perform any given work task. This book contributed to a change in industrial production philosophies, causing a shift from skilled labor and piecework towards the more modern of assembly lines and hourly wages. The initial use of scientific management by industries greatly increased productivity because workers were forced to work at a faster pace. However, workers became exhausted and dissatisfied, thus leaving researchers with new questions to answer regarding job satisfaction. It should also be noted that the work of W.L. Bryan, Walter Dill Scott, and Hugo Munsterberg set the tone for Taylors work. 58
Some argue that Maslows hierarchy of needs theory, a motivation theory, laid the foundation for job satisfaction theory. This theory explains that people seek to satisfy five specific needs in life physiological needs, safety needs, social needs, self- esteem needs, and self-actualization. This model served as a good basis from which early researchers could develop job satisfaction theories.
Job satisfaction can also be seen within the broader context of the range of issues which affect an individual's experience of work, or their quality of working life. Job satisfaction can be understood in terms of its relationships with other key factors, such as general well-being, stress at work, control at work, home-work interface, and working conditions.
Models of Job Satisfaction Affect Theory Edwin A. Lockes Range of Affect Theory (1976) is arguably the most famous job satisfaction model. The main premise of this theory is that satisfaction is determined by a discrepancy between what one wants in a job and what one has in a job. Further, the theory states that how much one values a given facet of work (e.g. the degree of autonomy in a position) moderates how satisfied/dissatisfied one becomes when expectations are/arent met. When a person values a particular facet of a job, his satisfaction is more greatly impacted both positively (when expectations are met) and negatively (when expectations are not met), compared to one who doesnt value that facet. To illustrate, if Employee A values autonomy in the workplace and Employee B is indifferent about autonomy, then Employee A would be more satisfied in a position that offers a high degree of autonomy and less satisfied in a position 59
with little or no autonomy compared to Employee B. This theory also states that too much of a particular facet will produce stronger feelings of dissatisfaction the more a worker values that facet.
Dispositional Theory Another well-known job satisfaction theory is the Dispositional Theory. It is a very general theory that suggests that people have innate dispositions that cause them to have tendencies toward a certain level of satisfaction, regardless of ones job. This approach became a notable explanation of job satisfaction in light of evidence that job satisfaction tends to be stable over time and across careers and jobs. Research also indicates that identical twins have similar levels of job satisfaction.
A significant model that narrowed the scope of the Dispositional Theory was the Core Self-evaluations Model, proposed by Timothy A. Judge, Edwin A. Locke, and Cathy C. Durham in 1997. Judge et al. argued that there are four Core Self- evaluations that determine ones disposition towards job satisfaction: self-esteem, general self-efficacy, locus of control, and neuroticism. This model states that higher levels of self-esteem (the value one places on his/her self) and general self-efficacy (the belief in ones own competence) lead to higher work satisfaction. Having an internal locus of control (believing one has control over her\his own life, as opposed to outside forces having control) leads to higher job satisfaction. Finally, lower levels of neuroticism lead to higher job satisfaction.
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Opponent Process Theory According to opponent process theory , emotional events, such as criticisms or rewards, elicits two sets of processes. Primary processes give way to emotions that are steady with the event in question. Events that seem negative in manner will give rise to the feelings of stress or anxiety. Events that are positive give rise to the feeling of content or relaxation. The other process is the opponent process, which induces feelings that contradict the feelings in the primary processes. Events that are negative give rise to feelings of relaxation while events that are positive give rise to feelings of anxiety. A variety of explanations have been suggested to explain the uniformity of mood or satisfaction. This theory shows that if you try to enhance the mood of individual it will more likely fail in doing so. The opponent process theory was formulated to explain these patterns of observations
Equity Theory Equity Theory shows how a person views fairness in regard to social relationships. During a social exchange, a person identifies the amount of input gained from a relationship compared to the output, as well as how much effort another persons puts forth . Equity Theory suggests that if an individual thinks there is an inequality between two social groups or individuals, the person is likely to be distressed because the ratio between the input and the output are not equal. For example, consider two employees who work the same job and receive the same benefits. If one individual gets a pay raise for doing the same or less work than the other, then the less benefited individual will become distressed in his workplace. If, on the other hand, one individual gets a pay raise and new responsibilities, then the feeling of inequality is reduced 61
Discrepancy Theory The concept of self-discrepancy theory explains the ultimate source of anxiety and dejection. An individual, who has not fulfilled his responsibility feels the sense of anxiety and regret for not performing well, they will also feel dejection due to not being able to achieve their hopes and aspirations. According to this theory, all individuals will learn what their obligations and responsibilities for a particular function, over a time period, and if they fail to fulfill those obligations then they are punished. Over time, these duties and obligations consolidate to form an abstracted set of principles, designated as a self-guide. Agitation and anxiety are the main responses when an individual fails to achieve the obligation or responsibility. This theory also explains that if achievement of the obligations is obtained then the reward can be praise, approval, or love. These achievements and aspirations also form an abstracted set of principles, referred to as the ideal self guide. When the individual fails to obtain these rewards, they begin to have feelings of dejection, disappointment, or even depression
Two-Factor Theory (Motivator-Hygiene Theory) Frederick Herzbergs Two factor theory (also known as Motivator Hygiene Theory) attempts to explain satisfaction and motivation in the workplace This theory states that satisfaction and dissatisfaction are driven by different factors motivation and hygiene factors, respectively. An employees motivation to work is continually related to job satisfaction of a subordinate. Motivation can be seen as an inner force that drives individuals to attain personal and organizational goals (Hoskinson, Porter, & Wrench, p. 133). Motivating factors are those aspects of the job that make people want to perform, and provide people with satisfaction, for example achievement in 62
work, recognition, promotion opportunities. These motivating factors are considered to be intrinsic to the job, or the work carried out. Hygiene factors include aspects of the working environment such as pay, company policies, supervisory practices, and other working conditions.
While Hertzberg's model has stimulated much research, researchers have been unable to reliably empirically prove the model, with Hackman & Oldham suggesting that Hertzberg's original formulation of the model may have been a methodological artifact.Furthermore, the theory does not consider individual differences, conversely predicting all employees will react in an identical manner to changes in motivating/hygiene factors.Finally, the model has been criticised in that it does not specify how motivating/hygiene factors are to be measured.
Job Characteristics Model Hackman & Oldham proposed the Job Characteristics Model, which is widely used as a framework to study how particular job characteristics impact on job outcomes, including job satisfaction. The model states that there are five core job characteristics (skill variety, task identity, task significance, autonomy, and feedback) which impact three critical psychological states (experienced meaningfulness, experienced responsibility for outcomes, and knowledge of the actual results), in turn influencing work outcomes (job satisfaction, absenteeism, work motivation, etc.). The five core job characteristics can be combined to form a motivating potential score (MPS) for a job, which can be used as an index of how likely a job is to affect an employee's attitudes and behaviors. A meta-analysis of studies that assess the framework of the model provides some support for the validity of the JCM. 63
Factors that Influence Job Satisfaction Environmental Factors Communication Overload and Communication Underload One of the most important aspects of an individuals work in a modern organization concerns the management of communication demands that he or she encounters on the job.Demands can be characterized as a communication load, which refers to the rate and complexity of communication inputs an individual must process in a particular time frame. Individuals in an organization can experience communication over-load and communication under- load which can affect their level of job satisfaction. Communication overload can occur when an individual receives too many messages in a short period of time which can result in unprocessed information or when an individual faces more complex messages that are more difficult to process. Due to this process, given an individuals style of work and motivation to complete a task, when more inputs exist than outputs, the individual perceives a condition of overload which can be positively or negatively related to job satisfaction. In comparison, communication under load can occur when messages or inputs are sent below the individuals ability to process them. According to the ideas of communication over-load and under-load, if an individual does not receive enough input on the job or is unsuccessful in processing these inputs, the individual is more likely to become dissatisfied, aggravated, and unhappy with their work which leads to a low level of job satisfaction. Superior-Subordinate Communication Superior-subordinate communication is an important influence on job satisfaction in the workplace. The way in which subordinates perceive a supervisor's behavior can positively or negatively influence job satisfaction. Communication behavior such as 64
facial expression, eye contact, vocal expression, and body movement is crucial to the superior-subordinate relationship (Teven, p. 156). Nonverbal messages play a central role in interpersonal interactions with respect to impression formation, deception, attraction, social influence, and emotional.Nonverbal immediacy from the supervisor helps to increase interpersonal involvement with their subordinates impacting job satisfaction. The manner in which supervisors communicate with their subordinates non-verbally may be more important than the verbal content (Teven, p. 156). Individuals who dislike and think negatively about their supervisor are less willing to communicate or have motivation to work whereas individuals who like and think positively of their supervisor are more likely to communicate and are satisfied with their job and work environment. A supervisor who uses nonverbal immediacy, friendliness, and open communication lines is more likely to receive positive feedback and high job satisfaction from a subordinate. Conversely, a supervisor who is antisocial, unfriendly, and unwilling to communicate will naturally receive negative feedback and create low job satisfaction in their subordinates in the workplace. Individual Factors Emotion Mood and emotions form the affective element of job satisfaction. Moods tend to be longer lasting but often weaker states of uncertain origin, while emotions are often more intense, short-lived and have a clear object or cause. Some research suggests moods are related to overall job satisfaction.Positive and negative emotions were also found to be significantly related to overall job satisfaction Frequency of experiencing net positive emotion will be a better predictor of overall job satisfaction than will intensity of positive emotion when it is experienced. 65
Emotion work (or emotion management) refers to various types of efforts to manage emotional states and displays. Emotion management includes all of the conscious and unconscious efforts to increase, maintain, or decrease one or more components of an emotion. Although early studies of the consequences of emotional work emphasized its harmful effects on workers, studies of workers in a variety of occupations suggest that the consequences of emotional work are not uniformly negative. It was found that suppression of unpleasant emotions decreases job satisfaction and the amplification of pleasant emotions increases job satisfaction.The understanding of how emotion regulation relates to job satisfaction concerns two models: 1. Emotional dissonance. Emotional dissonance is a state of discrepancy between public displays of emotions and internal experiences of emotions, that often follows the process of emotion regulation. Emotional dissonance is associated with high emotional exhaustion, low organizational commitment, and low job satisfaction. 2. Social interaction model. Taking the social interaction perspective, workers emotion regulation might beget responses from others during interpersonal encounters that subsequently impact their own job satisfaction. For example: The accumulation of favorable responses to displays of pleasant emotions might positively affect job satisfaction. Genetics It has been well documented that genetics influence a variety of individual differences.Some research suggests genetics also play a role in the intrinsic, direct experiences of job satisfaction like challenge or achievement (as opposed to extrinsic, environmental factors like working conditions). One experiment used sets 66
of monozygotic twins, reared apart, to test for the existence of genetic influence on job satisfaction. While the results indicate the majority of the variance in job satisfaction was due to environmental factors (70%), genetic influence is still a minor factor. Genetic heritability was also suggested for several of the job characteristics measured in the experiment, such as complexity level, motor skill requirements, and physical demands. Personality Some research suggests an association between personality and job satisfaction. Specifically, this research describes the role of negative affectivity and positive affectivity. Negative affectivity is related strongly to the personality trait of neuroticism. Individuals high in negative affectivity are more prone to experience less job satisfaction. Positive affectivity is related strongly to the personality trait of extraversion. Those high in positive affectivity are more prone to be satisfied in most dimensions of their life, including their job. Differences in affectivity likely impact how individuals will perceive objective job circumstances like pay and working conditions, thus affecting their satisfaction in that job. Measuring Job Satisfaction There are many methods for measuring job satisfaction. By far, the most common method for collecting data regarding job satisfaction is the Likert scale (named after Rensis Likert). Other less common methods of for gauging job satisfaction include: Yes/No questions, True/False questions, point systems, checklists, and forced choice answers. This data are sometimes collected using an Enterprise Feedback Management (EFM) system. The Job Descriptive Index (JDI), is a specific questionnaire of job satisfaction that has been widely used. It measures ones satisfaction in five facets: pay, promotions 67
and promotion opportunities, coworkers, supervision, and the work itself. The scale is simple, participants answer either yes, no, or cant decide (indicated by ?) in response to whether given statements accurately describe ones job. A related scale is the Job in general index, which asks employees how satisfying their job is in a broad overall sense. In certain situations, it can be more useful than the JDI because rather than focusing on individual facets, it asks about work satisfaction in general. Other job satisfaction questionnaires include: the Minnesota Satisfaction Questionnaire (MSQ), the Job Satisfaction Survey (JSS), and the Faces Scale. The MSQ measures job satisfaction in 20 facets and has a long form with 100 questions (five items from each facet) and a short form with 20 questions (one item from each facet). The JSS is a 36 item questionnaire that measures nine facets of job satisfaction. Finally, the Faces Scale of job satisfaction, one of the first scales used widely, measured overall job satisfaction with just one item which participants respond to by choosing a face.. Relationships and Practical Implications Job Satisfaction can be indicative of work behaviors such as organizational citizenship, and withdrawal behaviors such as absenteeism, and turnover.Further, job satisfaction can partially mediate the relationship of personality variables and deviant work behaviors. One common research finding is that job satisfaction is correlated with life satisfaction.This correlation is reciprocal, meaning people who are satisfied with life tend to be satisfied with their job and people who are satisfied with their job tend to be satisfied with life. However, some research has found that job satisfaction is not 68
significantly related to life satisfaction when other variables such as nonwork satisfaction and core self-evaluations are taken into account. An important finding for organizations to note is that job satisfaction has a rather tenuous correlation to productivity on the job. This is a vital piece of information to researchers and businesses, as the idea that satisfaction and job performance are directly related to one another is often cited in the media and in some non-academic management literature. A recent meta-analysis found surprisingly low correlations between job satisfaction and performance.Further, the meta-analysis found that the relationship between satisfaction and performance can be moderated by job complexity, such that for high-complexity jobs the correlation between satisfaction and performance is higher than for jobs of low to moderate complexity. Additionally, one longitudinal study indicated that among work attitudes, job satisfaction is a strong predictor of absenteeism, suggesting that increasing job satisfaction and organizational commitment are potentially good strategies for reducing absenteeism and turnover intentions. Recent research has also shown that intention to quit alone can have negative effects on performance, organizational deviance, and organizational citizenship behaviours. In short, the relationship of satisfaction to productivity is not as straightforward as often assumed and can be influenced by a number of different work-related constructs, and the notion that "a happy worker is a productive worker" should not be the foundation of organizational decision-making. For example, employee personality may even be more important than job satisfaction in regards to performance Job satisfaction: How to make work more rewarding Stress mounts when job satisfaction falls flat. Here's a look at the underlying causes of job dissatisfaction and practical ways to boost job satisfaction. 69
By Mayo Clinic staff Do you find yourself dreading the start of the workweek? Or wishing the workday away? Are you no longer enthusiastic about your job? In a challenging economy, you may not feel that you can "vote with your feet" and simply change jobs but you might be able to change how you think about your job to improve your job satisfaction. Understand the link between work approach and job satisfaction If you've gone sour on your job, take some time to think about what motivates and inspires you and how you approach your work. For example: It's a job. If you approach work as a job, you focus primarily on the financial rewards. The nature of the work may hold little interest for you. What's important is the money. If a job with more pay comes your way, you'll likely move on. It's a career. If you approach work as a career, you're likely interested in advancement. You may want to climb the career ladder as far as possible or be among the most highly regarded professionals in your field. You're motivated by the status, prestige and power that come with the job. It's a calling. If you approach your job as a calling, you focus on the work itself. You're less interested in financial gain or career advancement, preferring instead to find a sense of fulfillment from the work itself. One approach isn't necessarily better than the others, and you might find elements of all three perspectives important. Still, if you're unsatisfied with your job, it's helpful to reflect on why you work. Think about what originally drew you to your current job, and whether it may be a factor in your lack of job satisfaction.
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PERFORMANCE APPRAISAL CORELATION WITH JOB SATISFACTION
Performance appraisal are viewed as a vital human resource management issue where it consists of two salient features: motivational motive and punishment motive. The ability of appraisers (e.g., immediate bosses/managers) to properly implement such appraisal in allocating performance ratings may have significant impact on job satisfaction. Although the nature of this relationship is important, little is known about the role of performance appraisal as a predicting variable in the performance appraisal models. Therefore, this study was conducted to examine the effect of performance appraisal politics job satisfaction using 150 usable questionnaires gathered from employees who have worked in a national postal company in Sarawak, Malaysia. In initial data analysis, the results of exploratory factor analysis confirmed that the measurement scales used in this study satisfactorily met the standards of validity and reliability analyses. Further, in hypothesis testing, the outcomes of stepwise regression analysis showed that performance appraisal (i.e., motivational motive and punishment motive) significantly correlated with job satisfaction. Statistically, this result confirms that performance appraisal act as important predictors of job satisfaction in the studied organization. In addition, discussion, implications and conclusion are elaborated.
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RESEARCH AND METHODOLOGY
Research is an organized inquiry designed and carried out to provide information to solve the problem. The fact,search is an art of scientific investigation of a certain problem.research is the process of systematically obtaining accurate answers to significant and pertinent questions by the use of the scientific methods gathering and interpreting information. a. SAMPLE SIZE: sample size is 50. Data was analyzed by surveying employees from different departments. b. SAMPLE DESIGN: this part is done through discussing and analyzing with my project guide and referring to the subject regarding this topic.it was a random sampling. c. MODE OF ANALYSIS: The methods used to analyze the data are as follows: 1. To study the importance of performance appraisal in the organization. 2. To find out whether the employees are satisfied with the present performance appraisal system or not. 3. Interpret and analysis of the data and present it in a proper manner. 4. Uses of Microsoft excel for preparation of graph.
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OBJECTIVE OF THE STUDY
1. to study the performance appraisal system in the organization. 2. To find out how the performance of employees is assessed. 3. To review how the performance appraisal system helps in placement,selection,promotion and transfer of the employees. 4. To find out the problems faced by the staff in preparing their BBOS (BUSINESS BUILDING OBJECTIVE). 5. To offer suggestions and recommendation regarding the existing performance appraisal system in the company.
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LIMITATIONS OF PERFORMANCE APPRAISAL
1. the opinion of staff and manager are often in opposition,causing de- motivation. 2. The process is usually manager driven and the staff member is expected to be compliant in the interview. 3. The process usually involves manager giving their opinion and the staff member having to defend the position,rather than a positive discussion. 4. There is no room for remedial action during the year. 5. The process is usually done in a rushed manner to meet the budget development process and therefore loses its relevance to performance.
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ANALYSIS AND INTERPRETATION
QUE 1. Do you think that performance appraisal is essential for the employees of the company? (a)fully (b)partially (c)not at all
ANALYSIS AND INTERPRETATION
It shows 80% of the employees agree that performance appraisal is essential for the employees of the company and 20% of the employees partially agree. Currently annual appraisal system in iffco is carried out for the employees at executive levels and above only.the target set may be reviewed quarterly so that strengths and weaknesses,if any,can be assesses and remedial measures suggested accordingly.
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QUE 2.do you think so,that performance appraisal has been described as the responsibility,which is not liked by the superiors. (A)yes (B)partially (C)not at all
ANANLYSIS AND INTERPRETATION 46% executives say that they consider performance appraisal as the responsibility they liked the least.27% executives agree that it is a responsibility not liked by them and remaining 27% denies about any such probability. Considerable amount of time is spent for getting the appraisals done as per the existing system.the company should improve the existing system by designing and implementing departmental performance review system on a quarterly basis
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QUE3.do you agree that self-appraisal prior to performance appraisal facilitates you to get high rating? (a)completely (b)partially (c)not at all.
ANALYSIS AND INTERPRETATION 45.5% of the employees say partially self appraisal facilitates to get high ratings,27.3% employees agree completely and other 27.2% say self-appraisal does not help in high ratings in performance appraisal. Many companies (eg.britannia) have implemented the self appraisal system.this has proved helpful in identifying the needs for in-house group discussions/counselling methods/training and development programs.
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QUE 4.does your supervisor give you effective feedback on a regular basis? (a)yes (b)depend on the employees (C)not at all.
ANALYSIS AND INTERPRETATION It is clear that 100% of the employees say that the superior gives them effective on a regular basis. Any company should give feedback to the employees periodically they can also extend proper diagnostic tips/counselling methods at the required level.
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QUE5.do you think that performance appraisal is a good method for improving employees performance level? (A)to a great extent (B)to some extent (C)not at all
ANALYSIS AND INTERPRETATION 74% employees agree that up to a great extent,18% say that to some extent and 8% of the employees believe performance appraisal not at all improves performance appraisal. Currently the companys existing appraisal system is on annual basis.this may be reviewed on a quarterly basis,which will help in assessing the strengths and weaknesses of executives and role modifications can be suggested accordingly.
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QUE6.do your co-workers and superiors help you to cope up ith your poor performance? (A)to a great extent (B)to some extent (C)not at all
ANALYSIS AND INTERPRETATION 55% of the employees say up to great extent their co-workers and superiors help them to cope up with their poor performance and 45%say to some extent. Iffco can also concentrate on designing and implementing proper in-house counselling program through group discussions/personal interaction.
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QUE7.is your superior partial with you in deciding your rank? (A)yes (b)no
ANALYSIS AND INTERPRETATION
95% employees say yes and 5% employees say no. so superior should not partial with their employee because its effect their company promotions.due to poor rating some good employee can not take promotions and cant contribute the success of the company.
(a)fully (b)partially 81
QUE8.. How do you feel the working environment ? a) excellent b) good c)satisfactory not satisfactory
ANALYSIS AND INTERPRETATION 80% employees feel good their working enviorment and 20% feel satisfactory their working enviournment because they think they can get more benefit for their work.
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QUE9. Opinion about your job a) highly satisfied b) satisfied c) others (specify) .. d) not satisfied
ANALYSIS AND INTERPRETATION 95%employees satisfied for their job and 5% employees not satisfied for their job.because they think according to their work they should get promotionbut their senior dont think so.
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QUE10.My manager/supervisor provides me with continuous feedback to help me achieve a)strongly disagree b)disagree c)somewhat agree d)agree e)strongly agree
ANALYSIS AND INTERPRETATION 90% employees strongly agree but 10% employee disagree because they think their supervisior are doing partiality.they support only their favourate employee.
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SUMMARY OF FINDINGS
= Presently,iffco is following annual appraisal system for employees at the executive and the above level.the target may me reviewed on a quarterly basis. = Time is a crucial factor.company can delegate the responsibility to employees by desiging and implementing performance review system on a quarterly basis. = superiors should give feedback to employees periodically.they can also provide proper diagnostic tips/counselling methods at required level. = iffco has an existing system on annual basis.they can review on quarterly basis. = iffco can endorse proper diagnostic mapping for role modifications/training and development needs. = company can also involve organizational planning and development department to achieve its mission and goals. = for the merit raise,HR should introduce system for proper recognition rewards to such employees. = company should mainly concentrate on in-house counselling program through group discussions/personal interaction for the better performance of employees. = competency skills should be assessed and effective role modifications areas can be suggested for the better progress of the company.
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RECOMMENDATIONS
= in order to have a better liaison within the co-workers and their superiors the company should have a well-planned communication system and employeesviews should be taken in to considertation. = while working under pressure the employees performance is affected so it becomes necessary that the management should try to analyze the strengths and weaknesses of the employees. = teamwork should be assigned to employees,which will be helpful in establishing leadership qualities and also becoming aware of others problems. = employees should be given proper training and development programs to learn new concepts and technologies as to expand their capabilities,knowledge,skills etc.
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CONCLUSION
In the new millennium when the corporate world is designing newer techniques for developing employees and retaining them,iffco is no way behind and the organizational structure is such that people works hand in hand to align the organizational goals with the individuals goals.
Evaluation of employees performance is helpful as to strengthen the employees productivity,their promotion ,transfer and development needs etc.the organization has implemented the evaluation process not only to evaluate the performance of employees but also for their increment and promotion.the company follows a transparent performance performance appraisal system with no personal bias because it is wholly based on individualscontribution towards the organization.but there are some loopholes in the system that should be analyzed and corrective measures should be taken.
To sum it up,this project has provided me with opportunities to learn different areas of the HR function and has given me stepping-stones to climb up to reach the summit of HR at the end of my career.
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BIBLIOGRAPHY For the purpose of this study,some broad sources of literature were referred to: Textbooks 1. Human resource and personnel management-by k.ashwathappa 2. The essence of human resource management-by Eugene mc keena 3. Organizational theory-by gareth jones 4. Organizational behaviour-by Stephen robbins
Magazines and newspapers 1. The economic times 2. The week
Internet portals = www.iffco.nic.in =www.google.com =www.humanresourcesmagazine.com.