Aanchal

A
Research Project
On
“Employee Perception of Performance Appraisal Followed in

Footwear Industry: A Comparative Study on Bata India Limited
and Liberty Shoes Limited”
Submitted to
Kurukshetra University, Kurukshetra
In the partial fulfillment of the Degree of Master of Business Administration
Session 2016-18
Under Supervision of: Submitted by:

Ms. Aditi Madaan Aanchal
Assistant Professor Class Roll No.- 1755
Univ. Reg.- 12-SMTJ-32
Univ. Roll No………….
S D INSTITUTE OF MANAGEMENT & TECHNOLOGY, HUDA Road,

Jagadhri 135003 (Yamuna Nagar) Haryana
http://www.sdimt.co.in
Affiliated To KURUKSHETRA UNIVERSITY, KURUKSHETRA
1
DECLARATION
I Aanchal do hereby declare that the research report entitled “Employee Perception
Of Performance Appraisal Followed In Footwear Industry: A Comparative Study On
Bata India Limited And Liberty Shoes Limited” submitted to Ms. Aditi Madaan
(Assistant Professor) SDIMT in my own piece of work and it has not been submitted to any
other institute or published at any time before.
Aanchal
2
ACKNOWLEDGEMENT
I offer my sincere thanks and humble regards to S D INSTITUTE OF

MANAGEMENT & TECHNOLOGY, KUK University, Jagadhri. For imparting us very
valuable professional training in MBA.
I would like to thank the paramount power, the ultimate impeccable creator, the
almighty God, who is the one who has always directed me to work on the right path of my
life. With his grace, this project could become a reality.
Any accomplishment requires the effort of many people and this work is not different.
Firstly I would like to thank to Dr. Shelly Gupta (Director), Dr. Shilpa Jain (H.O.D.), all
faculty members and the associated staff for their ready assistance, interest and valuable
suggestion.
I would also like to extend my sincere thanks and gratitude towards Ms. Aditi
Madaan (Assistant professor) for her able guidance, regular counseling, keen interest and
constant encouragement, without which the dissertation would not have brimmed to fruition.
I would like to thank all my friends and family members for their support given to me time to
time. I don’t have words to express my thanks, nonetheless, my heart is full of gratitude for
the favors received by me from every person.
Aanchal
3
PREFACE
The successful completion of this research report was a unique experience for me because by
visiting many place and interacting various person, I achieved a better knowledge about this
system.
The experience which I gained by doing this research was essential at this turning
point of my carrier. This research report is being submitted which content detailed analysis of
the research under taken by me.
The research provides an opportunity to the student to devote his/her skills knowledge
and competencies required during the technical session.
The research is on the topic entitled “Employee Perception Of Performance Appraisal

Followed In Footwear Industry: A Comparative Study On Bata India Limited And
Liberty Shoes Limited”
4
CONTENTS
Chapter No. Title Page No.
Declaration
Acknowledgement
1. Introduction 1-20
1.1. Industry profile
1.2 Company profile
1.3 About the Topic
2. Literature review 21-22
3. Objectives of the Study 23
4. Research Methodology 24-28
5. Data Analysis and Interpretation 29-38
6. Result & Finding 39-40
7. Suggestion 41
8. Limitations 42
9. Conclusion 43
Bibliography 44-45
Annexure 46-47
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CHAPTER- 1
INTRODUCTION
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INDIAN FOOTWEAR INDUSTRY
 OVERVIEW
The Indian market for footwear includes all producers of non-cleated, rubber and plastic
footwear designed in style or for use. The industry is a collection of smaller, segmented,
yet often overlapping markets, defined by both the price and the purpose of the shoes. For
instance, there are mini-markets for shoes designed for each of many sports and
other purposes: basketball, running, walking, tennis, and casual wear. The greatest
overlap between these categories is between performance shoes and casual wear.
Therefore, there is some degree of overlap between most segments.
The industry is dominated by a few large firms, while the majority of other players have
less than 5% market share. These firms fight for market share through non-price
competition, on strategies such as strengthening brand image and increasing product
proliferation. The success of each firm is greatly dependent upon its marketing
campaigns. The brand image of the major firms is created by extensive marketing
campaigns and celebrity endorsements. Consumers associate themselves with a particular
brand and tend to stick with the brand with which they are comfortable. Entry to the
industry is difficult as brand loyalties are high. Standing on the threshold of a retail
revolution and witnessing a fast changing retail landscape, the Indian footwear market is
set to experience the phenomenal growth in coming years. In past few years too, the
market has seen robust growth, says ³indian footwear industry analysis´ report. This
report provides extensive research and in-depth analysis on the Indian footwear market.
The detailed data and analysis given in the report will help the client to evaluate the
leading-edge opportunities critical to the success of the footwear market in India. The
forecasts and estimations given in this report are not based on a complex economic
model, but are intended as a rough guide to the direction in which the market is likely to
move. This forecast is based on a correlation between past market growth and growth of
base drivers.
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HISTORY
Footwear is estimated to have started its long history of human use during the ice
age some 5million years ago. Unkind weather conditions are said to have created the
necessity for footwear. Other evidences show that footwear came to use at the end of the
Paleolithic period, at about the same time the early humans learned the art of leather
tanning. Early pieces of footwear were made of wrappings, usually made of leather or
dried grasses. Later on pieces were developed from an oval piece of leather which is
bound by a piece of strong leather thongs. Sandals, which are the first crafted footwear, are
the successors to these wrappings. In Egyptian funeral chambers, paintings show the different
stages in the preparation of leather and footwear. The images also show that in Egypt,
footwear depicted power and class. The pharaoh’s sandals were distinguished by the turned
up toes, a characteristic which is missing in the commoner’s footwear. Egyptian sandals
were crafted using straw, papyrus, or palm fiber. Later on, Egyptian women adorned their
footwear with precious stones and jewels. Material evidences showed that the Greeks loved
and took good care of their feet by using different footwear for different activities. Greek
women wearing sandals to signify their social class. Their footwear signified beauty,
elegance, refinement, and extravagance. It has been said that Greek women of bad
reputation attracted men by wearing elevated sandals. These sandals create a clacking´
sound when the wearer moves, and this sound was considered as a symbolic flaunting of
sexual charms. In Mesopotamia, leather wrappings are tied to the feet by a strip of the same
material. Romans, on the other hand, created durable leather thongs so their legions can
travel to places on foot. It is also believed that foot fetishes began with the Romans when Senator
Lucius Vitellus frequently kissed the shoe of his mistress which was hidden in his tunic. In Rome,
footwear also exhibited social class. The consuls wore white shoes, the senators wore
brown shoes, and the uniform footwear for the rest of the region was a short pair of boots that
uncovered the toes
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PROSPECTS
The demand for footwear products in India is expected to continue over the forecast period.
Footwear in India is expected to register a retail value CAGR of 8% at constant 2015 prices
over the forecast period to reach sales of Rs. 1.1 trillion by 2020. The rising health and
wellness trend in country is expected to drive increased participation in activities such as
exercising , swimming and jogging over the forecast period. More people in the urban regions
are expected to join gyms and also take up sporting activites such as football, basketball,
volleyball and cricket. The improving economy is expected to create new job opportunities
over the forecast period and more men and women are joining the workforce. The number of
international schools which demand branded footwear in the urban regions is also expected to
increase over the forecast period. All these factors are expected to drive the demand for
footwear products over the forecast period in India.Leather products in India.
9
PRODUCTION OF FOOTWEAR IN INDIA
 India is the largest global producer of footwear after China , accounting to approx
13% of world footwear production ,which is close to 16 billion pairs.
 This means that the average consumption globally is about 2-3 paira/person.India
produces approximate 2,000 Million pairs annually in different categories of
Footwear .
 India exports about 115 million pairs , thus nearly 95% of its produce meets its own
domestic demand.
 With an estimated global population of 7-8 billion,India constitutes a share of approx
15%, which means 1.2 to 1.3 billion feet needs to be covered from heat, cold, injuries
protection etc.Footwear sector is a very significant segment of Leather and Non
leather products
 SIZE OF INDIAN DOMESTIC FOOTWEAR INDUSTRY
 Size of Indian domestic footwear industry is estimated to be worth 20-25000 crores .

 Leather and Non Leather Footwear per capita consumption is estimated to be approx
1.1 pairs.
 Slippers (Hawai Chappals) segment is close to 10000 crores with per capita
consumption are estimated to be 1 pair.
 The challenge for Indian Footwear Industry is lit large but anticipating India to
become amongst top 5 superpowers in 2030.
 Our consumption rate can increase as high as 7-8 Pairs, in such a scenario India would
need to produce between 8-10 billion pairs consider yearly population growth
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TOP FOOTWEAR BRANDS IN INDIA
SR.NO. BRAND NAME
1 Woodland
2 NIKE
3 Adidas
4 Bata
5 Puma
6 Reebok
7 Metro
8 Liberty
9 Fila
10 Mochi
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INTERESTING FACTS ABOUT INDIAN FOOTWEAR INDUSTRY (IP)
 The Indian footwear retail market is expected to grow at a CAGR of 20% for the
period spanning from 2008-2015.
 Footwear is expected to comprise about 60% of total export by 2011.
 Presently,the Indian footwear market is dominated by Men’s footwear market that
accounts nearly 58% of total Indian footwear retail market.
 By products,the Indian footwear market is dominated by casual footwear market that
makes up for nearly two-third of total footwear retail market.
 The Indian footwear market scores over other footwear market as it gives benefits like
low cost of production, abundant raw material and has huge consumption market.
 The footwear component industry also has enormous opportunity for growth to cater
to increasing production of footwear of varios types,both for export and domestic
market.
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COMPANY PROFILE
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BATA- INDIA’S FAVORITE FOOTWEAR BRAND
Bata India is the largest retailer and leading manufacturer of footwear in India and is a part of
the Bata Shoe Organization.
Incorporated as Bata Shoe Company Private Limited in 1931, the company was set up
initially as a small operation in Konnagar (near Calcutta) in 1932. In January 1934, the
foundation stone for the first building of Bata’s operation - now called the Bata. In the years
that followed, the overall site was doubled in area. This township is popularly known as
Batanagar. It was also the first manufacturing facility in the Indian shoe industry to receive
the ISO: 9001 certification.
The Company went public in 1973 when it changed its name to Bata India Limited. Today,
Bata India has established itself as India’s largest footwear retailer. Its retail network of over
1200 stores gives it a reach / coverage that no other footwear company can match. The stores
are present in good locations and can be found in all the metros, mini-metros and towns
Bata’s smart looking new stores supported by a range of better quality products are aimed at
offering a superior shopping experience to its customers.
The Company also operates a large non retail distribution network through its urban
wholesale division and caters to millions of customers through over 30,000 dealers.
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ABOUT BATA
 Bata is a family owned global footwear and fashion accessory manufacture and
retailer with acting headquarters located in LAUSANNE, SWITZERLAND.
 Organised in 3 business units :
1. Bata Europe,based in Italy.
2. Bata Emerging market (Asia,Pacific,Africa) ,based in singapore.
3.Bata Protective (B2B operation),based in Netherland.
 The organization has a retail presence of over 5000 retail stores in over 70 counteries
and production facilities in 26 counteries.
 Bata was founded by Tomas Bata.
 Its slogan is – I Love my shoes.
 Bata estimates that it seves more than 1 million customers per day, employing 30000
people.
 Bata India has 5 factories and 2 tanneries.
 Bata was founded in 1894 in Austria – Hungry.
 Bata India has 1500 designs of footwears for men, women and kids.
 Around the world, Bata seveve its customers with well made and well priced dress &
casual shoes for men , women and kids in 90 counteries in Asia, Pacific, Africa and
America.
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VALUES OF BATA
1. Constant innovation in design and product development.

2. Superior customer service.
3. Excellence in operational and commercial execution.
4. Enterpreneurial spirit and passion to win.
5. Teamwork in International environment .
6. Trust and respect for our employees
7. Adding values to the community.
8. Delevering on our commitment to shareholders.
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EXISTING BATA BRANDS
 Bata is a household name in India and is the undisputed leader in

footwear technology. It manufactures and markets footwear for every walk of life. It
is the first Indian company to introduce shoes using latest technology under
its brand "BataTech". Among its newest collection of technology in Men's shoes
are "Wind" with in- built air-circulation technology, "Antishox" with shock
absorbing technology and "Flexible" the most bendable shoe with in -built
comfort feature and "Comfort" for women have become breakthrough products in
footwear industry
We cater to a wide range of choices all over the country. Hush Puppies are one of the world's
most comfortable shoes designed for both men and women. Marie Claire is for today's
fashion conscious women who love shoes, which match their colorful and vibrant
wardrobe. That's not all. For those who want a tough shoe that can weather any storm, we
have Sandak to suit their needs. Weinbrenner is simply meant to take you outdoors. With
them on you can be rest assured about their rugged character and durability. Kids
can take their pick from Bubble Gummers. Power is all about athleticism, for those who
love sports and enjoy sporting activities.
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SWOT ANALYSIS
STRENGTHS WEAKNESSES
BATA INDIA
LIMITED
OPPORTUNITIES THREATS
 STRENGTHS
o Largest retailer network of 1300 outlets, 4000 franchises and another
10000dealers.
o Brand awareness was established in the early 30’s. People associated Bata for
quality and real value for money.
o Brand loyalty: Bata has got its own brand of customers who swear
by the name Bata from medium class to premium class.
o Bata is restructuring the retail operation whereby it is closing loss making
stores and is planning of opening new stores which are more viable.
 WEAKNESSES
o Lagging in innovation.
o Cost structure: Cost structure is a big concern to Bata.
o Raw material cost has increased mainly due to increase in price of natural
rubber by 44%. This is something that the industry players are not being able
to control.
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o Competition: with the entry of the big international brands like
NIKE, LOTTO, WOODLAND, LEE, COOPER, etc Bata found it
very difficult to hold its market share.
o Cash tied up in inventories: B a t a i n v e s t e d a l o t o f
m o n e y i n t h e inventories and fixed assets in the form of unused land
extensive network of dealer showroom for which maintenance and up keeping
is paid out which in return reduces profitability.
o Low motivations among retailer’s outlets and sloppy showrooms.
 OPPORTUNITIES
o Rapid growth of consumerism in state: With the rapid growth of middleclass
in the state, the purchasing power of the average person has increased. T h e
awareness for the quality footw ear has created a rise in
d e m a n d f o r quality footwear affordable prices.
o Ever changing tastes of customer: The fashion conscious
customers always look for new styles and designs in favor. The Indian
footwear market is highly dynamic nature.
o Bata expects to touch the 100 million pair mark from the present 60
million pairs mark.
o Tie-up: The tie-ups with Nike may attract more
c u s t o m e r s t o B a t a showrooms.
o Distribution Network: Bata’s distribution strength ensures higher
success profitability for new product segments.
o Being an essential commodity the company can target all types of income
groups.
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 THREATS
o Global competition: In the premium segment Bata has to fuse stiff competition
with global players like Lotus Bawa and Woodlands.2.
o Raw-materials: Raw materials used by the company are leather hides and
chemicals: high quality raw materials are very critical to produce international
standard finished products.
o Future outlook: The Company has launched a joint venture, Mid East
Integrated Steel Ltd (MISH) with China metallurgical import and export
Corporation to its leather segments
It has entered into the domestic shoe market and is also likely to own retail in the
domestic shoe market as well as in the global market.
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 COMPETITIVE LANDSCAPE OF BATA
 Bata India continued to be the market leader within footwear during 2015.
 The company commanded a retail value share of 5% during 2015 and
continued to maintain its lead over the next big player ,Paragon Group.
 Between 2014 and 2015 the company opened 159 new retail stores across
India.
 These stores were of larger size compared to existing stores and were based
on the global design the company follows in other countries , making the
stores look attractive and spacious .
 The company has plan to add around 100 new retail stores for the forecast
period to increase its presence across the tier two and three cities of the
country.
 The company also invested in improving its store layouts and created special
emphasis on its key products in the stores through in- store promotions.
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LIBERTY –AN INTRODUCTION
For a group, which started its operations in the pre-independence era, Liberty has truly
liberated itself from a conservative mould to face the challenges of the present competitive
scenario. Starting off as a small trading shop called “Pal Boot House”; the 57 years old
group has today evolved into leading shoe manufacturers in the country and has star men
the export market, too. Though its core business is and will be, for a long time-footwear,
the group has also diversified into the manufacture of cigarette lighters.
The group has invested in state of the art manufacturing facilities at Karnal, Libertypuram,
Gharaunda, Agra, Kanpur and Saharanpur. While Liberty’s main manufacturing facility is
located at the group headquarters in Karnal, the Delhi office is concerned with the
advertising and marketing of the various brands as well as the diversification plans.
The company manufactures a wide range of footwear with PVC/leather soles, genuine
leather and synthetic uppers, catering to men, women Liberty Shoes Ltd. is the only Indian
company that is among the top 5 manufacturers of leather footwear in the world with a
turnover exceeding U.S. $100 million and children.
With 50 years of excellence, today Liberty produces footwear for the entire family and is a
trusted name across the world. In the domestic market it is one of the most admired
footwear brands and holds the largest market share for leather footwear.
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ORIGIN OF LIBERTY
The company has been set up to manufacture and sell leather and non-leather shoes,
leather shoes upper and leather garments. Presently, the company is engaged in
manufacturing of leather and non-leather shoes.
It had also set up a joint venture in Russia to manufacture shoes in 1991 under the name
M/s Liberty & Co. with Gorky Production (shoes unit) Gorky city. Subsequently, the name
of the joint venture was changed to Liberty & Nino vide No.1/43/89-ep (01) dated
29.04.1991 of Ministry of commerce, Govt. of India.
Entered into an agreement with one of the group firms. Liberty shoe Ltd. for using the
established brand name LIBERTY. As per the terms of this agreement the company can
use this trademark initially for a period of 5 years on a royalty payment of Rs.20 Lac
spread over even in Europe and other advance countries the show industry has only growth
of ancillary industries.
Libert shoes was founded by DHARAM PAL GUPTA ,PURSHOTAM DAS GUPTA and
RAJKUMAR BANSAL by the name of PAL BOOT HOUSE in 1954. Liberty shoes first
associated in India for distribution and exclusive showrooms with Balbir Singh & sons in
year of 1983,which was later named as Naurson Sales Coprporation.
The company was incorporated on 3 September ,1986 as a Public Limited Company and
obtained the certificate of commencement of business on 11 March 1988.
The company has set up shoes and leather garments .Presently the Company is engaged in
manufacturing of leather and non leather shoes. Liberty shoes is a Karnal company.
It has also set up its joint venture in Russia to manufacture shoes in 1991 under the name
of M/S Liberty & Go, with M/S Gorky Production & shoes .
The company is marketing its product under the brand name “LIBERTY” and is well
established in the national and international market. The company has entered into an
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agreement with one of the group firms M/S Liberty Enterprises for using the established
brand name.
The company presently produces 50000 pairs of the footwear a day through its six
manufacturing units, sold through 6000 multi-brand outlets and has a presence and 350
exclusive showrooms, and has a presence in 25 countries ,with 50 showrooms outside
India.
The CEO of the company is Adesh Gupta.
The company has commenced its commercial production for non leather shoes on 25
December 1993. Initially one direct injection soiling machine was installed with a capacity
of 5000 pairs per annum on single shift basis .
The second direct injection soiling machine was installed in March 1994. From the
commoncement of commercial production till 31 March 1994, the company has been
operating on full capacity. As the promoters are in this line for the last five decades, the
company is confident of maintaining this level of operations in the future. The company
has been promoted by P.D. Gupta and R.K. Bansal and belongs to the LIBERTY.
FIRST BRAND OF LIBERTY
‘Force 10’ ,Liberty’s first sub- brand was launched in 1990, a time when a casual footwear
wave sweeping the Indian market. By 1994-95 , Force 10 became Liberty’s flagship brand in
value, notching up sales of 32 crore. In the coming years , it not only help the company
establish its name the domestic footwear market, but also paved the way for 9 other sub-
brands and a firm foothold the mass family footwear segment. It is till now led by BATA,
now LIBERTY was the country’s second largest footwear company after it.
MAJOR EXPANSION
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The company saw its major expansion in 2000s, both in retail and manufacturing bases ,
leading to a s. harp growth, in the year 2002-2003. The company posted a retail turnover of
Rs.400 crore .
In April 2003, the LIBERTY GROUP underwent an important restructuring and its product
portfolio was also revamped.
In January 2004, with Liberty Shoes the holding company for its shoe business and a
subsidiary LIBERTY RETAIL REVOLUTION Ltd for its retail business.
It has also another subsidiary LIBERTY WHITEWARE.
PRODUCTION AND PROMOTION
LSL PRODUCES 50000 pairs of footwear a day covering every age group and income
category. Products are promoted and marketed by 150 distributors ,350 exclusive
showrooms and 6000 multibrands. It sold as above shown in 25 counteries.
After 50 years of its existence it produces footwear for all age groups.
MANUFUCTRING
Librty’ s manufacturing base includes six facilities spread across the numerous states,two in
Gharaunda and Liberty Puram (Haryana) .
Where its primary and the largest manufacturing units are situated , Paonta Sahib,( Himachal
Pradesh).
It has also two units in Roorkee (Uttarakhand).
The company has avoided locations in the conventional Indian shoe manufacturing locations
such as Agra, Kanpur,Noida and Chennai etc
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BRAND CATEGORY AS PER AGE GROUP
AGE GROUP BRAND
Men Coolers, Fortune, Force 10, Windsor
Women Senorita and Tiptop
Kids Footfun, Perfect
Safety shoes Freedom, Warrior
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SWOT ANALYSIS
STRENGTHS: -
 Proper production facilities.

 Good employer-employee relationship.
 Efficient management.
 Totally computerized.
 Team building.
 Fulfilling social responsibility by keeping environment clean.
WEAKNESS:-
 Shortage of funds.
 Unnecessary blockage of funds.
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OPPORTUNITY:-
 Large global market.
 Quick response to customer needs.
THREATS:-
 Heavy Competition.
 Government policies
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TOP BRANDS
The name Liberty was chosen to provide freedom of choice to the Indian footwear buyer
whose options at that time were limited to one multinational brand that dominated the Indian
market.
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ABOUT THE TOPIC
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PERFORMANCE APPRAISAL
Performance Appraisal is the systematic evaluation of the performance of employees

and to understand the abilities of a person for further growth and development. Performance
appraisal is generally done in systematic ways which are as follows:
 The supervisors measure the pay of employees and compare it with targets and plans.
 The supervisor analyses the factors behind work performances of employees.
 The employers are in position to guide the employees for a better performance.
Performance appraisal is the process of obtaining, analyzing and recording information

about the relative worth of an employee. The focus of the performance appraisal is measuring
and improving the actual performance of the employee and also the future potential of the
employee.
According to Flippo, a prominent personality in the field of Human resources, "performance
appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in
the matters pertaining to his present job and his potential for a better job." Performance
appraisal is a systematic way of reviewing and assessing the performance of an employee
during a given period of time and planning for his future. It is a powerful tool to calibrate,
refine and reward the performance of the employee. It helps to analyze his achievements and
evaluate his contribution towards the achievements of the overall organizational goals.
By focusing the attention on performance, performance appraisal goes to the heart

of personnel management and reflects the management's interest in the progress of the
employees.
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OBJECTIVES OF PERFORMANCE APPRAIS
Performance Appraisal can be done with following objectives in mind:
 To maintain records in order to determine compensation packages, wage structure,

salaries raises, etc.
 To identify the strengths and weaknesses of employees to place right men on right
job.
 To maintain and assess the potential present in a person for further growth and
development.
 To provide a feedback to employees regarding their performance and related status.
 To provide a feedback to employees regarding their performance and related status.
 It serves as a basis for influencing working habits of the employees.
 To review and retain the promotional and other training programmes.
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ADVANTAGES OF PERFORMANCE APPRAISAL
It is said that performance appraisal is an investment for the company which can be justified
by following advantages:
 Promotion: Performance Appraisal helps the supervisors to chalk out the promotion
programs for efficient employees. In this regards, inefficient workers can be
dismissed or demoted in case.
 Compensation: Performance Appraisal helps in chalking out compensation packages

for employees. Merit rating is possible through performance appraisal. Performance
Appraisal tries to give worth to a performance. Compensation packages which include
bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent
on performance appraisal. The criteria should be merit rather than seniority.
 Employees Development: The systematic procedure of performance appraisal helps

the supervisors to frame training policies and programs. It helps to analyze strengths
and weaknesses of employees so that new jobs can be designed for efficient
employees. It also helps in framing future development programs.
 Selection Validation: Performance Appraisal helps the supervisors to understand the

validity and importance of the selection procedure. The supervisors come to know the
validity and thereby the strengths and weaknesses of selection procedure. Future
changes in selection methods can be made in this regard.
 Communication: For an organization, effective communication between employees

and employers is very important. Through performance appraisal, communication can
be sought for in the following ways:
o Through performance appraisal, the employers can understand and accept

skills of subordinates.
o The subordinates can also understand and create a trust and confidence in
superiors.
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o It also helps in maintaining cordial and congenial labor management
relationship.
o It develops the spirit of work and boosts the morale of employees.
 Motivation: Performance appraisal serves as a motivation tool. Through evaluating

performance of employees, a person’s efficiency can be determined if the targets are
achieved. This very well motivates a person for better job and helps him to improve
his performance in the future
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APPRAISAL PROCESS
OBJECTIVES OF PERFORMANCE APPRAISAL
ESTABLISH JOB EXPECTATIONS
DESIGN AN APPRAISAL PROGRAM
APPRAISE PERFORMANCE
PERFORMANCE INTERVIEW
ARCHIVE APPRAISAL DATA
USE APPRAISAL DATA FOR APPRAISAL PURPOSES
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METHODS OF PERFORMANCE APPRAISAL
The performance appraisal methods may be classified into three categories, as shown in
Figure below.
INDIVIDUAL EVALUATION METHODS

Under the individual evaluation methods of merit rating, employees are evaluated one at a
time without comparing them with other employees in the organization.
(a) Confidential report: It is mostly used in government organizations. It is a descriptive

report prepared, generally at the end of every year, by the employee's immediate superior.
The report highlights the strengths and weaknesses of the subordinate. The report is not
databased. The impressions of the superior about the subordinate are merely recorded there. It
does not offer any feedback to the appraisee. The appraisee is not very sure about why his
ratings have fallen despite his best efforts, why others are rated high when compared to him,
how to rectify his mistakes, if any; on what basis he is going to be evaluated next year, etc.
Since the report is generally not made public and hence no feedback is available, the
subjective analysis of the superior is likely to be hotly contested. In recent years, due to
36
pressure from courts and trade unions, the details of a negative confidential report are given
to the appraisee.
(b) Essay evaluation: Under this method, the rater is asked to express the strong as well as
weak points of the employee's behavior. This technique is normally used with a combination
of the graphic rating scale because the rater can elaborately present the scale by substantiating
an explanation for his rating. While preparing the essay on the employee, the rater considers
the following factors:
(i) Job knowledge and potential of the employee
(ii) Employee understands of the company's programs, policies, objectives, etc.
(iii) The employee's relations with co-workers and superiors
(iv) The employee's general planning, organizing and controlling ability
(v) The attitudes and perceptions of the employee, in general.
Essay evaluation is a non-quantitative technique. This method is advantageous in at least one

sense, i.e., the essay provides a good deal of information about the employee and also reveals
more about the evaluator.
(c) Critical incident technique: Under this method, the manager prepares lists of statements
of very effective and ineffective behavior of an employee. These critical incidents or events
represent the outstanding or poor behavior of employees on the job. The manager maintains
logs on each employee, whereby he periodically records critical incidents of the workers
behavior. At the end of the rating period, these recorded critical incidents are used in the
evaluation of the workers' performance.
An example of a good critical incident of a sales assistant is the following:
July 20 – The sales clerk patiently attended to the customer’s complaint. He is polite,
prompt, and enthusiastic in solving the customers' problem.
On the other hand the bad critical incident may appear as under:
37
July 20 – The sales assistant stayed 45 minutes over on his break during the busiest part of
the day. He failed to answer the store manager's call thrice. He is lazy, negligent, stubborn
and uninterested in work..
(d) Checklists and weighted checklists: Another simple type of individual evaluation
method is the checklist. A checklist represents, in its simplest form, a set of objectives
or descriptive statements about the employee and his behavior. If the rater believes strongly
that the employee possesses a particular listed trait, he checks the item; otherwise, he leaves
the item blank. A more recent variation of the checklist method is the weighted list. Under
this, the value of each question may be weighted equally or certain questions may be
weighted more heavily than others. The following are some of the sample questions in the
checklist.
1. Is the employee really interested in the task assigned? Yes/No
2. Is he respected by his colleagues (co-workers) Yes/No
3. Does he give respect to his superiors? Yes/No
4. Does he follow instructions properly? Yes/No
5. Does he make mistakes frequently? Yes/No
A rating score from the checklist helps the manager in evaluation of the performance of the
employee. The checklist method has a serious limitation. The rater may be biased in
distinguishing the positive and negative questions. He may assign biased weights to the
questions. Another limitation could be that this method is expensive and time consuming.
Finally, it becomes difficult for the manager to assemble, analyze and weigh a number of
statements about the employee's characteristics, contributions and behaviors. In spite of these
limitations, the checklist method is most frequently used in the employee's performance
evaluation.
(e) Graphic rating scale: Perhaps the most commonly used method of performance
evaluation is the graphic rating scale. Of course, it is also one of the oldest methods of
evaluation in use. Under this method, a printed form, as shown below, is used to evaluate the
38
performance of an employee. A variety of traits may be used in these types of rating devices,
the most common being the quantity and quality of work. The rating scales can also be
adapted by including traits that the company considers important for effectiveness on the job.
(f) Behaviorally anchored rating scales: Also known as the behavioral expectations scale,
this method represents the latest innovation in performance appraisal. It is a combination of
the rating scale and critical incident techniques of employee performance evaluation. The
critical incidents serve as anchor statements on a scale and the rating form usually contains
six to eight specifically defined performance dimensions. The following chart represents an
example of a sales trainee's competence and a behaviorally anchored rating scale.
(g)Forced choice method: This method was developed to eliminate bias and the
preponderance of high ratings that might occur in some organizations. The primary purpose
of the forced choice method is to correct the tendency of a rater to give consistently high or
low ratings to all the employees. This method makes use of several sets of pair phrases, two
of which may be positive and two negative and the rater is asked to indicate which of the four
phrases is the most and least descriptive of a particular worker. Actually, the statement items
are grounded in such a way that the rater cannot easily judge which statement applies to the
most effective employee. The following box is a classic illustration of the forced choice items
in organizations.
Table: Forced Choice Items
1. Least Most
A Does not anticipate difficulties A
B Grasps explanations easily and quickly B
C Does not waste time C
D Very easy to talk to D
2. Least Most
A Can be a leader A
B Wastes time on unproductive things B

39
C At all times, cool and calm C
D Smart worker D
The favorable qualities earn a plus credit and the unfavorable ones earn the reverse. The
worker gets over plus when the positive factors override the negative ones or when one of the
negative phrases is checked as being insignificantly rated.
They overall objectivity is increased by using this method in evaluation of employee's

performance, because the rater does not know how high or low he is evaluating the individual
as he has no access to the scoring key. This method, however, has a strong limitation. In the
preparation of sets of phrases trained technicians are needed and as such the method becomes
very expensive. Further, managers may feel frustrated rating the employees ‘in the dark'.
Finally, the results of the forced choice method may not be useful for training employees
because the rater himself does not know how he is evaluating the worker. In spite of these
limitations, the forced choice technique is quite popular.
(h) Management by Objectives (MBO): MBO represents a modern method of evaluating

the performance of personnel. The concept of management by objectives is actually the
outcome of the pioneering works of Drucker, McGregor and Odiorne in management science.
Management by objectives can be described as “a process whereby 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 of him and use these
measures as guides for operating the unit and assessing the contributions of each of its
members”. MBO thus represents more than an evaluation program and process. Practicing
management scientists and pedagogues view it as a philosophy of managerial practice; it is a
method by which managers and subordinates plan, organize, control, communicate and
debate.
40
MULTIPLE PERSON EVALUATION METHODS
a) Ranking Method: The ranking system requires the rater to rank his subordinates on
overall performance. This consists in simply putting a man in a rank order. Under this
method, the ranking of an employee in a work group is done against that of another
employee. The relative position of each employee is tested in terms of his numerical rank. It
may also be done by ranking a person on his job performance against another member of the
competitive group.
b) Forced Distribution method: This is a ranking technique where raters are required to
allocate a certain percentage of rates to certain categories (e.g. superior, above average,
average) or percentiles (e.g. top 10 percent, bottoms 20 percent etc). Both the number of
categories and percentage of employees to be allotted to each category are a function of
performance appraisal design and format. The workers of outstanding merit may be placed at
top 10 percent of the scale; the rest may be placed as 20 % good, 40 % outstanding, 20 % fair
and 10 % fair.
c) Paired comparison method: Paired comparison analysis is a good way of weighing up

the relative importance of options a better technique of comparison than the straight
ranking method; this method compares each employee with all others in the group, one at
a time. After all the comparisons on the basis of the overall comparisons, the employees
are given the final rankings.
41
Employee Reactions to Performance Appraisal
Numerous researchers have reported that many employees are not satisfied with their
performance appraisal (PA) systems. Studies have shown that subjectivity as well as
appraiser bias is often a problem perceived by as many as half of employees. Appraiser bias,
however, appears to be perceived as more of a problem in government and public sector
organizations. Also, according to some studies, employees wished to see changes in the PA
system by making “the system more objective, improving the feedback process, and
increasing the frequency of review.” In light of traditional PA operation defects,
“organizations are now increasingly incorporating practices that may improve the system.
These changes are particularly concerned with areas such as elimination of subjectivity and
bias, training of appraisers, improvement of the feedback process and the performance review
discussion.”
According to a meta-analysis of 27 field studies, general employee participation in his/her

own appraisal process was positively correlated with employee reactions to the PA
system. More specifically, employee participation in the appraisal process was most strongly
related to employee satisfaction with the PA system. Concerning the reliability of employee
reaction measures, researchers have found employee reaction scales to be sound with few
concerns through using a confirmatory factor analysis that is representative of employee
reaction scales.
42
Researchers suggest that the study of employees’ reactions to PA is important because of
two main reasons:
 Employee reactions symbolize a criterion of interest to practitioners of Pas
 Employee reactions have been associated through theory to determinants of appraisal

acceptance and success.
Researchers translate these reasons into the context of the scientist-practitioner gap or the
“lack of alignment between research and practice.”
Therefore, the performance appraisal process often is stressful for both employers and
employees. Workers often are afraid of being judged and sometimes fear they will be
misjudged for the wrong reasons. Managers and supervisors, especially those who have a
strong need to be liked, might not want to tell workers when they are performing poorly.
However, it is important to be objective and truthful during the appraisal process if you want
to improve an employee's performance. It also is important to give employees the opportunity
to express their reactions to the performance appraisal in a positive manner, whether the
specific reaction itself is positive or negative.
43
PERFORMANCE APPRAISAL BIASES
Managers commit mistakes while evaluating employees and their performance. Biases and
judgment errors of various kinds may spoil the performance appraisal process. Bias here
refers to inaccurate distortion of a measurement. These are:
 First Impression (primacy effect): Raters form an overall impression about the ratee
on the basis of some particular characteristics of the ratee identified by them. The
identified qualities and features may not provide adequate base for appraisal.
 Halo Effect: The individual’s performance is completely appraised on the basis of a
perceived positive quality, feature or trait. In other words this is the tendency to rate a
man uniformly high or low in other traits if he is extra-ordinarily high or low in one
particular trait. If a worker has few absences, his supervisor might give him a high
rating in all other areas of work.
 Horn Effect: The individual’s performance is completely appraised on the basis of a
negative quality or feature perceived. This results in an overall lower rating than may
be warranted. “He is not formally dressed up in the office. He may be casual at work
too!”
 Excessive Stiffness or Lenience: Depending upon the raters own standards, values
and physical and mental makeup at the time of appraisal, ratees may be rated very
strictly or leniently. Some of the managers are likely to take the line of least resistance
and rate people high, whereas others, by nature, believe in the tyranny of exact
assessment, considering more particularly the drawbacks of the individual and thus
making the assessment excessively severe. The leniency error can render a system
ineffective. If everyone is to be rated high, the system has not done anything to
differentiate among the employees.
 Central Tendency: Appraisers rate all employees as average performers. That is, it is
an attitude to rate people as neither high nor low and follow the middle path. For
example, a professor, with a view to play it safe, might give a class grade near the
equal to B, regardless of the differences in individual performances.
 Personal Biases: The way a supervisor feels about each of the individuals working
under him - whether he likes or dislikes them - as a tremendous effect on the rating of
44
their performances. Personal Bias can stem from various sources as a result of
information obtained from colleagues, considerations of faith and thinking, social and
family background and so on.
 Spillover Effect: The present performance is evaluated much on the basis of past
performance. “The person who was a good performer in distant past is assured to be
okay at present also”.
 Recency Effect: Rating is influenced by the most recent behavior ignoring the
commonly demonstrated behaviors during the entire appraisal period.
Therefore while appraising performances; all the above biases should be avoided.
45
THEORETICAL FRAMEWORK
 CONSTRUCT
To study the differences between Bata India Limited and Liberty Shoes Limited with
respect to perception of fairness of the performance appraisal system and employee’s
satisfaction with performance appraisals
 DEPENDENT VARIABLE
o Employee’s perception
 INDEPENDENT VARIABLE
o setting performance expectations
o rater’s confidence
o clarifying expectations
o providing feedback
o accuracy of ratings
o explaining rater’s decision
o seeking appraisal
o concerns over ratings
o treatment by supervisor/s
46
CHAPTER- 2
REVIEW OF
LITERATURE
47
LITERATURE REVIEW:
 Muczyk Jan P., Myrom Gable(May 1987), suggested ”Managing Sales Performance
Through A Comprehensive Performance Appraisal System”, performance is
managed in organization determines to a large extent the success or failure of the
organization. Performance Appraisal System help to evaluate and manage sale
performances of employess and organization .
 Ranjekar dileep(Aug. 2005), suggested“360 Degree Appraisal”,The purpose of 360-

degree appraisal is to develop certain competencies in the employee, especially those
of leadership, where the feedback of peers and juniors makes an important
contribution.
 Doleh- Jamal, Weir David(January 2007), states that ”Dimensions of Performance

Appraisal Systems in Private and Public Organizations”,Explores the attitudes of
human resource managemengt working in the private and public organizations
towards functions of their performance appraisal systems
 Sudarshan Arvind(2009), highlight that ”Employee Performance Appraisal: the
Suitability of Management by Objectives and Key Result Areas”,Organizations
employ people for their work contributions, but there is no consensus as to how
employees should be appraised.
 Sudhakar G P, Dr. Farooq Ayesha, Dr. Patnaik Sangammitra(May. 2010), shows

that”Performance Matrices”, High performance teams are being used in times where
critical systems and in projects where response time needs to be fast. There
organization use performance matrices for performance appraisal of employees.
 Selden Sally and Sowa E. Jessica(2011), highlight that ”Performance Management

and Appraisal in Human Service Organizations: Management and Staff Perspectives”,
Nonprofit organizations, like public and private sector organizations, are facing
increasing pressure to demonstrate how well they perform and their plans for future
improvement.
48
 Purang P. and Shrivastava A.(January 2011), shown that ”Employee Perception of
Performance Appraisal: A Comparative Study On Indian Banks”,Performance
appraisal is the most critical human resource practice and indispensable part of every
organization, as every organization need qualitative performance appraisal system. As
it measures the success and failure of organization.
 Brutus Stephane, Fletcher Clive, Baldrya Caroline(September 2011), suggested
that ”The Influence of Independent Self- Construal on Rater’s Self- Efficacy in
Performance Appraisal”,Current knowledge on the use of performance evaluations in
organizations by investigating the influence of self- construal on rater’s self- efficacy
 Biron Michal, Farndale Elaine, Paauwe Jaap(March 2011), shown that
”Performance Management Effectiveness: Lessons From World- Leading
Firms”,Interest in performance management has increased considerably in recent
years, research revealed inconsistent results about its effectiveness.
 Trout Jack(January- February 2012), highlight that “ Search For Our Next Smart
Managers”, Few guesses regarding from where will smart managers come from
which are mix of broad, better appraisal system, agenda- setting frameworks,
workshops etc.Smart managers develop better appraisal system to evaluate
employees.
 Deb Tapomoy(September 2012), shows that“ Self Improvrment”, Man is not pulled
from in front nor is he pushed from behind; rather he is driven from within. One way
to manage yourself is concentrate on results which are given by evaluation of
performance and improve themselves .
 Hongjiang Xu (April 2012), highlight the“Organization’s Top Management And

Other System User’s Option Towards Data Quality Performance And Expectations”,
Managing employee performance has always been a critical component of a
manager’s responsibility and difficult times it becomes even more critical.
 Spreitzer Gretchen and Porath Christine (September 16, 2012), states that
“Creating Sustainable Performance”,Sustainable performance is created only if a
manager gives his employees the chance to learn and grow, they’ll thrive- and so the
49
organization also.If employess performance is evaluated efficiently then they can
succeed and develop themselves and improve their performance.
 Karabell Shellie(November 2012), shown that , Star performers may be CEOs or

politicians or even clerics; they may live in a forest or a city or a jungle. But they all
share certain traits. Star performer can be recognized through a efficient and effective
systems,techniques and procedures of performance appraisal.
50
CHAPTER- 3
OBJECTIVES OF THE
STUDY
51
RESEARCH OBJECTIVE
 To study the employee’s perception with the performance appraisal system
 To address the specific aspects of performance appraisal.
 To study the fairness of the performance appraisal arisen out from evaluation of
outcomes received
 To study the procedure used to allocate the outcome.
 To analyze whether fairness of appraisal system is the main issue faced by employees.
52
CHAPTER- 4
RESEARCH
METHODOLOGY
53
RESEARCH METHODOLOGY
To carry out the research, the researcher has used the following research methodology.
Research design is a master plan specifying the methods and procedures for collecting and
analyzing the needed information. It is a framework or the blueprint that plans the action for
research project. The objectives of the study determined during the early stages of the
research are included in the design to ensure that the information collected is appropriate for
solving the problem
So following steps followed in research process:
 Problem statement
 Research design
 Sample design
 Data collection
 Analysis and Interpretation of data
54
PROBLEM STATEMENT
The research problems, in general refers to some difficulty with a researcher experience in
the contest of either a particular a theoretical situation and want to obtain a solution for same.
The present deals with analyzing the employee’s perception of performance appraisals in
Bata India Limited and Liberty shoes limited.
RESEARCH DESIGN
Purpose of the study Descriptive
Type of investigation Casual
Measurement and scaling Likert scale
55
SAMPLE AND SAMPLING DESIGN
Target population 200 employees working with Footwear sector
Sample size 75 employees which comprises 37.5% of

total population
Sampling technique Non probability sampling
Sampling Area Employees of Bata India Limited and Liberty

Shoes Limited
56
DATA COLLECTION
Data collection is integral part of the research design, though we are dealing it separately.
Data collection is determined by the research technique selected for the project. Data can be
collected in a variety of ways, in different settings – field or lab – and from different sources.
It could include interviews – face to face interviews, telephone interviews, computer-assisted
interviews, and interviews through electronic media; questionnaires that either personally
administered, sent through mail, or electronically administered; observation of individuals
and events which could be participant or non participant.
In the present study researcher has made use of:
PRIMARY SECONDARY
SOURCE SOURCE
57
CHAPTER- 5
DATA ANALYSIS
&
INTERPRETATION
58
DATA ANALYSIS
PERCEPTION OF FAIRNESS OF PERFORMANCE APPRAISAL
(A)SETTING PERFORMANCE STANDARDS
Statement 1: The Performance Planning & Review process requires that performance
expectation be set for me during a Planning Session at the start of a rating period.
RESPONDENTS (in RESPONDENTS (in

RESPONSES number) percentage)
strongly agree 13 17.3
Agree 29 38.7
neither agree nor disagree 22 29.3
Disagree 9 12.0
strongly disagree 2 2.7
Total 75 100
Table 6.1
38.7
40 29 29.3
30 22
17.3
20 13 912.0
22.7 RESPONDENTS (in
10
number)
0
RESPONDENTS (in
percentage)
Fig.6.2
INTERPRETATION:
38.7% of the total employees agree and 17.3 % strongly agree while 29.3% were neutral and
rest 12% employees disagree and 2.7% strongly disagree to the fact.
59
Statement 2: The Performance Planning & Review process makes sure that my
performance expectations measures what I really do for the organization.

Agree 36 48.0
Disagree 13 17.3
Total 75 100
Table 6.2
48.0
50
45
40 36
35
30
25 18.7 RESPONDENTS (in
20 16.0 17.3 number)
14 13
15 12
RESPONDENTS (in
10 percentage)
5 0 0.0
0
strongly agree neither disagree strongly
agree agree disagree
nor
disagree
Fig.6.2
INTERPRETATION :
48% of the total employees agree and 18.7 % strongly agree while 16% were neutral and rest
17.3% employees disagree to the fact.
60
Statement 3: The expectation set during the Performance Planning Session
reflect the most important factors in my job.

Agree 20 26.7
Disagree 12 16.0
Total 75 100
Table 6.3
70
60
50
40 33.3
RESPONDENTS (in
26.7
30 percentage)
21.3
RESPONDENTS (in
20 16.0
number)
10
25
20 16 12
2.7
0 2
agree agree nor disagree
disagree
Fig.6.3
INTERPRETATION:
61
Statement 4: The Performance Planning & Review process allows me to help set the
standards that my supervisor will use to rate my performance.

agree 32 42.7
disagree 7 9.3
total 75 100
Table 6.4
80
70
60
42.7
50
40 RESPONDENTS (in
30.7
percentage)
30
RESPONDENTS (in
20 14.7 number)
32
10 23 9.3
11 7 2.7
0 2
disagree
Fig.6.4
INTERPRETATION:
rest 9.3% employees disagree and 2.7% strongly disagree to the fact.
62
Statement 5: My performance standards set for me during the Planning Session will
remain the same until my rater and I change them.

Agree 31 41.3
Disagree 10 13.3
Total 75 100
Table 6.5
50 41.3
40
31 26.7
30 RESPONDENTS (in number)
14.7 20 13.3
20
11 10 4.0 RESPONDENTS (in
10 3 percentage)
0
agree agree disagree
nor
disagree
Fig.6.5
INTERPRETATION:
rest 13.3% employees disagree and 4% strongly disagree to the fact.
63
(B) RATER CONFIDENCE
Statement1- My organization make sure that I am assigned a rater who is qualified to

evaluate my work.

Agree 29 38.7
Disagree 10 13.3
Total 75 100
Table 6.6
38.7 37.3
40
29 28
30
13.3 RESPONDENTS (in number)
20
5.3 10 5.3
10 RESPONDENTS (in
4 4
percentage)
0
strongly agreeagree
neither agree nor disagree
disagree
strongly disagree
Fig.6.6
INTERPRETATION:
64
Statement 2: My organization ensures that I am assigned a rater who knows what I am
supposed to be doing.

Agree 20 26.7
Disagree 11 14.7
Total 75 100
Table 6.7
70
37.3
60
30.7
50
40
RESPONDENTS (in
30 percentage)
28 16.0
14.7
23 RESPONDENTS (in
20 number)
10 11 12
1.3
1
0
disagree
Fig.6.7
INTERPRETATION :
26.7% of the total employees agree and 32 % strongly agree while 22.7% were neutral and
65
Statement 3: My organization ensures that I am assigned a rater who understands the
requirements and difficulties of my work

Agree 28 37.3
Disagree 12 16.0
total 75 100
Table 6.8
70
37.3
60
30.7
50
40
RESPONDENTS (in
30 percentage)
28 16.0
14.7
23 RESPONDENTS (in
20 number)
10 11 12
1.3
1
0
disagree
Fig.6.8
INTERPRETATION:
66
Statement 4: My organization ensures that my rater is familiar with the Performance
Planning & Review, rating procedures and rating format.

Agree 26 34.7
Disagree 6 8.0
Total 75 100
Table 6.9
6.7
16.0
8.0
5 12
6
strongly agree
agree
26 26 neither agree nor disagree
34.7 disagree
34.7
strongly disagree
Fig.6.9
INTERPRETATION:
67
Statement 5: My organization ensures that I am assigned a rater that knows how to
evaluate my performance.

Agree 32 42.7
Disagree 8 10.7
Total 75 100
Table 6.10
1.3
10.7 16.0
8 1
12
strongly agree
agree
29.3 22
neither agree nor disagree
disagree
32
strongly disagree
42.7
Fig.6.10
INTERPRETATION:
68
(C) ACCURACY OF RATING
Statement 1: My performance is based on how well I do my work

Agree 18 24.0
Disagree 11 14.7
Total 75 100
Table 6.11
RESPONDENTS (in number)

RESPONDENTS (in percentage)
50
40
48.0
30
24.0
20 9.3
36
10 18 14.7
7
0 11 4.0
strongly 3
agree
agree neither
agree nor disagree
strongly
disagree disagree
Fig.6.11
INTERPRETATION:
24% of the total employees agree and 9.3 % strongly agree while 48% were neutral and rest
14.7% employees disagree and 4% strongly disagree to the fact.
69
Statement 2: My performance rating is based on how much work I do.

Agree 29 38.7
Disagree 7 9.3
Total 75 100
Table 6.12

40
35
30 38.7
25 20.0
20 28.0
15 29
10 15 21
5 9.3
0 7 4.0
strongly 3
agree
agree neither
agree nor disagree
strongly
disagree disagree
Fig. 6.12
INTERPRETATION:
38.7% of the total employees agree and 20% strongly agree while 28% were neutral and rest
70
Statement 3: My performance rating is based on the many things I do that help at work.

Agree 25 33.3
Disagree 8 10.7
Total 75 100
Table 6.13
40 33.3 36.0
35
30
25 16.0 27
20
25
15 RESPONDENTS (in number)
12 10.7
10
5 8 4.0
0
3
strongly agree
agree neither
disagree
agree nor strongly
disagree disagree
Fig.6.13
INTERPRETATION:
33.3% of the total employees agree and 16 % strongly agree while 36% were neutral and rest
71
Statement 4: My most recent performance rating is based on the effort I put into the
job.

Agree 31 41.3
Disagree 10 13.3
Total 75 100
Table 6.14
50 41.3
40
30 13.3 28.0
20 31
13.3
10 10 21 RESPONDENTS (in percentage)
10
4.0
0
3
strongly agree
agree neither
disagree
agree nor strongly
disagree disagree
Fig.6.14
INTERPRETATION:
41.3% of the total employees agree and 13.3 % strongly agree while 28% were neutral and
72
Statement 5: The most recent performance rating I received is based on the many things
I am responsible for at work.

agree 28 37.3
disagree 12 16.0
total 75 100
Table 6.15
37.3
38.7
40
35
30
25 28 29
20 5.3 16.0
15 12 RESPONDENTS (in number)
10 4 RESPONDENTS (in percentage)
5 2.7
0 2
strongly agree
agree neither
disagree
agree nor strongly
disagree disagree
Fig.6.15
INTERPRETATION: 37.3% of the total employees agree and 5.3 % strongly agree while
38.7% were neutral and rest 16% employees disagree and 2.7% strongly disagree to the fact.
73
CHAPTER- 6
RESULTS AND FINDINGS
74
FINDINGS
The following are the major findings of the study :
 17.3% of employees are strongly agree that performance expectations set at the start
of rating period.
 48% of employees are agree that performance expectations measures what they really
do for organization.
 21% of employees neither agree nor disagree that performance expectation reflects
important factors of their job.
 42% of employees agree that expectations help in set performance standard.
 13% of employees disagree that rater assigned is qualified to evaluate the work
 32% of employees strongly agree that assigned rater knows what they are supposed to
do.
 37% of employees are agree that assigned rater understands the requirements and
difficulties.
 8% of employees are disagree that rater is familiar with rating procedure and format.
 20% of employees are agree that performance based on quality of work.
 10% of employees are disagree that supervisor don’t treat them with kindness.
 10% of employees are strongly agree that rater don’t invade privacy in supervision.
75
CHAPTER- 7
SUGGESTIONS
76
Suggestions
After completing the analysis and interpretation the researcher has suggested
following recommendations to the employer so that they would be able to design such
PMS which will improve the employee perception
 Proper induction programmed should be there so that the employees should be aware
about the method of performance appraisal.
 The employees should be motivated by giving more of rewards with a mix of

individual and group award.
 There should be open communication between the subordinates & superiors.
 The employees should be given more of group assignments.
 There should be transparency in appraising the performance of the employees.
 The employees should be given knowledge regarding the methods of PMS.
 The employees should be given the knowledge regarding the various rating scales.
77
CHAPTER- 8
LIMITATIONS OF THE
STUDY
78
LIMITATIONS OF THE STUDY
However the researcher has tried her best in collecting the relevant information for research
report, yet there have been some problems faced by the researcher. The prime difficulties
which researcher has faced in collection of information are discussed below:
1. Time Constraint: The time period for carrying out the research has been limited as a
result of which many facts have been left unexplored. So if more time had been
provided, the sample size would have been increased. The respondent would have
been given more time to fill the questionnaire.
2. Unwillingness of respondents: While collection of the data many employees were
unwilling to fill the questionnaire. They have taken this as an unproductive activity.
3. Respondents’ bias: Due to the biasness on the part of respondents, data collected
may have been affected which further reduces the credibility of the findings.
4. Limited sample size: The sample size was only 37.5% of the target population due to
which the findings cannot be generalized.
5. Other limitations:
 Employees misinterpret as questionnaire is standardized
 Employees didn’t replied honestly
 Employees didn’t wish to reveal the information as they might think that they will
not benefit from responding perhaps even be penalized by giving their real
opinion.
 Questionnaire was lengthy.
 There is no way to tell how truthful a respondent is being
 There is no way of telling how much thought a respondent has put in
 Lacks validity
 Employees didn’t understand the questions.
79
CHAPTER- 9
CONCLUSION
80
CONCLUSION
 Company should introduce the concept of Management by Objective (MBO) while

doing performance planning so that the personal goals of the employees can be in
alignment with the organizational goals.
 The company should try to increase the clarity of the jobs assigned so that the
employees can perform better.
 Company should try to give more of team assignments and they should be given
group rewards rather than individual rewards so that employees can work better in
team.
 Company should try to provide open communication between the superiors and
subordinates so that the expectations from the superiors to the subordinate are clear.
 There should be clear linkage between performance appraisal program & employee’s
perception
 Employer should set clear expectations and PPR system should measure the work
actually done by employees
 Organizations should provide different ways to appeal biased or inaccurate ratings
 Rater should give clear and real examples to justify his or her ratings
81
BIBLIOGRAPHY
82
BIBLIOGRAPHY
BOOKS:
1. Chhabra T.N. (Fifth Revised Edition),”Human Resource Management, concepts and

issues”, Educational and Technical Publishers, New Delhi, 377-380.
2. Ashwathappa K.(Fifth Edition),”Human Resource Management”, Tata Mc Graw- Hill
publishing Company, New Delhi, 199-230
3. Rao P. Subba(Third Revised Edition),”Human Resource Management and Industrial
Relations”, Himalaya publishing House, Mumbai, 60-87
4. Gary Dessler(Eighth Edition),”Human Resource Management” Pearson Education
Private Limited, Singapore, 290-300
5. Gupta S.C. and Kapoor V.K.(Third thoroughly Revised Edition),”Fundamentals Of
Mathematical Statistics”, Sultan Chand and Sons Educational Publishers, 10.1-10.7
6. Cooper Donald R. and S. Schinder Pamela(Second Edition),”Marketing Research,
concepts and cases”, Tata Mc Graw- Hill publishing Company, New Delhi, 196-200
7. Kothari C.R.(Second Revised Edition),”Research Methodology- Methods and
Techniques”, New Age International Publishers, New Delhi, 233-236
8. Jain T.R. and Dr. Aggarwal S.C.(2009-2010 Edition),”Statistics For MBA”, V.K.
(India) Enterprises, New Delhi, 40-46
9. Sekaran Uma(Fourth Edition),”Research Methods for Business- A Skill Building
Approach”, John Wiley and Sons Limited, United Kingdom, 105-108
10. Decenzo David A., Robbins Stephen P. (5th Edition), “Personnel Human Resource
Management”, Wiley India, pp no 325-332
11. Ahuja Ram(Seventh Edition),”Research Methods”, Rawat publications, Jaipur, 193-
195
12. Malhotra K Naresh (5th Edition), “Marketing Research: An Applied Orientation”,

Prentice Hall of India Private Limited, New Delhi, 57-66
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Organizational Behavior”, Tata Mc Graw- Hill publishing Company, New Delhi,
130-137
83
JOURNALS:
14. Selden Sally and Sowa E. Jessica(2011),”Performance Management and Appraisal in

Human Service Organizations: Management and Staff Perspectives”,Public Personnel
Management,40(3), pp 251-264
15. Purang P. and Shrivastava A.(January 2011),”Employee Perception of Performance
Appraisal: A Comparative Study On Indian Banks”,The International Journal Of
Human Resource Management, 22(3), pp 632-647
16. Brutus Stephane, Fletcher Clive, Baldrya Caroline(September 2009, 1999-2011),”The
Influence of Independent Self- Construal on Rater’s Self- Efficacy in Performance
Appraisal”, 20(9), pp 1999-2011
17. Biron Michal, Farndale Elaine, Paauwe Jaap(March 2011),”Performance Management
Effectiveness: Lessons From World- Leading Firms”,The International Journal Of
18. Sudarshan Arvind(2009),”Employee Performance Appraisal: the (UN) Suitability of
Management by Objectives and Key Result Areas”,Curie, 2(2), pp 47-54.
19. Doleh- Jamal, Weir David(January 2007),”Dimensions of Performance Appraisal
Systems in Jordanian Private and Public Organizations”,The Imternational Journal Of
20. Muczyk Jan P., Myrom Gable(May 1987),”Managing Sales Performance Through A
Comprehensive Performance Appraisal System”,Journal Of Personal Selling And
Sales Management, VIII, pp 41-52
MAGAZINES:
21. Trout Jack (January- February 2012),”How To Search For Our Next Smart
Managers”, “The Smart Manager”, 11(1), pp 18-20
22. Deb Tapomoy(September 2012),”Inventory For Self Management”,“Competition

Affairs”, pp 3-6
23. Hongjiang Xu(April 2012),”Organization’s Top Management And Other System

User’s Options Towards Data Quality Performance And Expectations,“Advance
Management”, 5(4), pp 16-17
84
24. Spreitzer Gretchen and Porath Christine (September 16, 2012),” Creating
Sustainanble Performance”,“Business Today”, pp 98-100
25. Karabell Shellie(November 2012),” Are You A Star Performer?”,“Indian

Management” 51, pp 85-87
26. Ranjekar dileep(Aug. 2005),” 360-degree appraisal”,“Human Capital”, pp 14-16
27. Sudhakar G P, Dr. Farooq Ayesha, Dr. Patnaik Sangammitra(May. 2010),”

Performance matrices”,”HRM Review”, pp 22-26
WEBSITES:
28. http://www.scribd.com/doc/37515894/Indian-Footwear-Industry
29. http://www.bata.in/webbata/faces/jsp/static.jsp?articleid=1954
30. http://www.mithin.co.in/web5/?portfolio=brand-strategy-for-bata-shoes-ambassador
31. http://www.libertyshoes.com/cpages.aspx?mpgid=1&1pgid=2&2pgid=4
32. http://www.managementstudyguide.com/performance-appraisal.htm
33. http://www.managementstudyguide.com/performance-appraisal-tools.htm
34. http://www.openlearningworld.com/books/Performance%20and%20Potential%20Appr
aisal/Performance%20and%20Potential%20Appraisal/Methods%20of%20Performanc
e%20Appraisal.html
35. http://www.humanresources.hrvinet.com/paired-comparison-analysis/
36. http://appraisals.naukrihub.com/traditional-method.html
37. http://en.wikipedia.org/wiki/Performance_appraisal
38. http://www.managementstudyguide.com/performance-appraisal-bias.htm
39. http://ckbooks.com/mathematics/business-mathematics-statistics/research-methods-
business-mathematics-statistics/the-research-process-3/
85
40. http://www.humanresources.hrvinet.com/performance-appraisal-methods/
41. http://www.ehow.com/how_4884528_write-performance-review-manager.html
42. http://www.superperformance.com/
43. http://www.itpeopleindia.com/20030310/management1.shtml
44. http://webs.rtc.edu/ii/Teaching%20Resources/EssentialFeaturesPerformanceAppraisal.
45. http://www.blackwellreference.com/public/tocnode?id=g9780631233176_chunk_g97
814051169789_ss1-14
86
ANNEXURE
87
ANNEXURE I
QUESTIONNAIRE ON PERFORMANCE APPRAISAL
(For each statement rate your reaction with 1- strongly agree, 2- agree, 3- neither agree nor
disagree, 4- disagree, 5- strongly disagree)
PERCEPTION OF FAIRNESS OF PERFORMANCE APPRAISAL
( A) SETTING PERFORMANCE STANDARD
PARTICULARS 1 2 3 4 5
1. The Performance Planning &Review process

requires that performance expectation be set for me
during a Planning Session at the start of a rating
period
2. The Performance Planning &Review process makes
sure that my performance expectations measures
what I really do for the organization
3. The expectation set during the Performance
Planning Session reflect the most important factors
in my job
4. The Performance Planning &Review process
allows me to help set the standards that my
supervisor will use to rate my performance
5. My performance standards set for me during the
Planning Session will remain the same until my
rater and I change them
(B) RATER CONFIDENCE
1. My organization make sure that I am assigned a
rater who is qualified to evaluate my work
2. My organization ensures that I am assigned a rater
who knows what I am supposed to be doing
who understands the requirements and difficulties of
my work
4. My organization ensures that my rater is familiar
with the Performance Planning & Review, rating
88
procedures and rating format
that knows how to evaluate my performance
(C) ACCURACY OF RATINGS
1. My performance is based on how well I do my
work
2. My performance rating is based on how much
work I do.
3. My performance rating is based on the many
things I do that help at work
4. My most recent performance rating is based on
the effort I put into the job
5. The most recent performance rating I received
is based on the many things I am responsible
for at work
(D) SENSITIVITY IN SUPERVISION
1. My rater does not invade my privacy
2. My rater does not make hurtful statements to me
3. My supervisor is sensitive to my feelings
4.My supervisor shows concern for my rights as an
employee
5. My supervisor treats me with kindness
89

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A

“Employee Perception of Performance Appraisal Followed in

Under Supervision of: Submitted by:

S D INSTITUTE OF MANAGEMENT & TECHNOLOGY, HUDA Road,

I offer my sincere thanks and humble regards to S D INSTITUTE OF

The research is on the topic entitled “Employee Perception Of Performance Appraisal

1.1. Industry profile

1.2 Company profile

1.3 About the Topic

2. Literature review 21-22

3. Objectives of the Study 23

4. Research Methodology 24-28

5. Data Analysis and Interpretation 29-38

6. Result & Finding 39-40

 SIZE OF INDIAN DOMESTIC FOOTWEAR INDUSTRY

 Size of Indian domestic footwear industry is estimated to be worth 20-25000 crores .

SR.NO. BRAND NAME

1. Bata Europe,based in Italy.

2. Bata Emerging market (Asia,Pacific,Africa) ,based in singapore.

3.Bata Protective (B2B operation),based in Netherland.

1. Constant innovation in design and product development.

 Bata is a household name in India and is the undisputed leader in

The CEO of the company is Adesh Gupta.

FIRST BRAND OF LIBERTY

It has also another subsidiary LIBERTY WHITEWARE.

PRODUCTION AND PROMOTION

It has also two units in Roorkee (Uttarakhand).

AGE GROUP BRAND

Men Coolers, Fortune, Force 10, Windsor

Women Senorita and Tiptop

Kids Footfun, Perfect

Safety shoes Freedom, Warrior

 Proper production facilities.

 Unnecessary blockage of funds.

 Large global market.

 Quick response to customer needs.

Performance Appraisal is the systematic evaluation of the performance of employees

Performance appraisal is the process of obtaining, analyzing and recording information

By focusing the attention on performance, performance appraisal goes to the heart

Performance Appraisal can be done with following objectives in mind:

 To maintain records in order to determine compensation packages, wage structure,

 To provide a feedback to employees regarding their performance and related status.

 To provide a feedback to employees regarding their performance and related status.

 It serves as a basis for influencing working habits of the employees.

 To review and retain the promotional and other training programmes.

 Compensation: Performance Appraisal helps in chalking out compensation packages

 Employees Development: The systematic procedure of performance appraisal helps

 Selection Validation: Performance Appraisal helps the supervisors to understand the

 Communication: For an organization, effective communication between employees

o Through performance appraisal, the employers can understand and accept

o It develops the spirit of work and boosts the morale of employees.

 Motivation: Performance appraisal serves as a motivation tool. Through evaluating

OBJECTIVES OF PERFORMANCE APPRAISAL

ESTABLISH JOB EXPECTATIONS

DESIGN AN APPRAISAL PROGRAM

ARCHIVE APPRAISAL DATA

USE APPRAISAL DATA FOR APPRAISAL PURPOSES

INDIVIDUAL EVALUATION METHODS

(a) Confidential report: It is mostly used in government organizations. It is a descriptive

(i) Job knowledge and potential of the employee

(ii) Employee understands of the company's programs, policies, objectives, etc.

(iii) The employee's relations with co-workers and superiors

(iv) The employee's general planning, organizing and controlling ability

(v) The attitudes and perceptions of the employee, in general.