CHAPTER-1 RATIONALE FOR THE STUDY

WHY I HAVE SELECTED THIS TOPIC?

The top executives want clarity in their vision and empowerment. However middle and junior management want rewarding performance on a frequent basis. HRD is no longer a non core function. It plays a critical role in employee engagement and retention. Employees want that their HR Managers play a proactive role in constantly updating them about their roles and goals. But the HR Manager in Indian companies is still in a nascent stage. He/she needs to grow in every direction and should possess the core competencies required by the organization . Thats why HRD is clearly seen as one of the solutions to the above said problems. For this I feel, PERFORMANCE APPRAISAL should be conducted effectively and efficiently to completely eliminate such problems.

Performance appraisal is defined as the assessment of an individuals performance against well defined benchmarks. Without this process, an organization cannot grow because every organization is measured only on the basis of their performance. As we know that employees of any organization are its assets. Hence, in order to protect them as well as for their development , this process has been followed in every company to provide a greater contribution towards the achievement of goals of an organization.

CHAPTER-2 TITLE OF THE PROJECT

Role of Performance Appraisal in Max Retail

CHAPTER-2 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE: 1. To study the performance appraisal system in an organization .

2. To get an insight into the relative importance of performance appraisal in organization.

3. To study the effectiveness of performance appraisal in an organization. 4. How can companies use performance appraisal as an effective tool to achieve

organizational effectiveness and efficiency .

SECONDARY OBJECTIVE: 1. To observe the work environment in an organization .

2. To increase my confidence.

3. To handle the real life situation of an organization .

4. Curious to know about the various functions of retail.

5. To get experience and expertise in making projects .

CHAPTER-2 SCOPE OF THE STUDY

The scope of the study covered whole employees of MAX of Kharghar.Number of employees in MAX Kharghar are 36 . They belonged to inventory department , finance department , floor employees(CRE) , department managers ,store manager ,marketing manager and other staffs also. The scope also included person who had joined the organisation recently as well as those who had long years of experience in the organisation. This study also included the scope of responsibility of the H.R.D. Department with respect to performance appraisal The study also looked into the K.R.A.s, KPIs and the change in the role of H.R.D.

The scope of the study considered the appraisal system as a basis for salary increments, promotion and feedback to the employees.

CHAPTER-3 PROFILE OF COMPANY

LANDMARK GROUP

The Landmark Group, founded in 1973 with a single shop in Bahrain has grown into one of the largest retail organisations in the GCC and is expanding rapidly in India.It currently operates over 550 stores across the region .In addition to its retail sector , the group has also diversified into leisure , food , hotels and electronics. The chairman of Landmarks group is Mr.MICKEY JAGTIYANI. There are various outlets of Landmarks group like SPLASH , SHOEMART ,BABY SHOP, LIFESTYLE etc. MAX is a division of lifestyle.

LANDMARKSCOMMITMENT ......................................................................................................... Landmark always strives to grow with the consumers. In the process it will provide products and services that are:

 Great value for money  Fashionable & contemporary  On par with global standards In order to ensure consistent customer satisfaction, Landmark has ensured that the brand and shop level experience across all its brands and outlets, in all the markets it operates in, is not only living but offers the highest degree of customer satisfaction. This will reflect not only in the way it conducts the business but equally in all communications with employees, business partners, associates and consumers.

OUR VISION STATEMENT

To become the leading retail group, maintaining our constant growth through our core value .

OUR MISSION STATEMENT

Carefully listen . Constantly adapt . Always deliver.

CORE VALUES

1. PASSION FOR EXCELLENCE- We are commited to setting industry benchmarks- be it our product or practices. Our doctrine is to strive and maintain the lead in whatever we do , with strict adherence to quality and delivering value for money .

2. INTEGRITY IN EVERYTHING WE DO Our business is driven by trust , strong ethics and mutual respect.

3. EMPOWERING PEOPLE TO STRIVE AND DELIVER Our core strength is our employees . We believe in giving our personnel the oppourtunity and responsibility that are integral to their professional development and our Groups success .

4. ADAPTING TO CHANGING MARKET AND CUSTOMER NEEDS We keep ourselves abreast with industry trends and dynamic consumer preferences . Our offerings keep evolving to address changing and discerning consumer needs .

SOCIAL RESPONSIBILITY
THE COMMUNITY The Group firmly believes that, a business entity is responsible for the wellbeing of the community that works for it and the community that it works in. Driven by the example of Chairman Micky Jagtiani in his personal capacity spearheads LIFE (Landmark International Foundation for Empowerment) in India. LIFE, founded in 2000, is an NGO for the development of communities through education, housing and health care. Over 100,000 have benefitted to date. The Vision for LIFE INDIA: Empowerment of the underprivileged through creative education Our mission of education translates into the following programs:      Home for destitute children

Life skills inventory

Non-formal education programPrimary education for village children.

Health center in slums-Health related awareness for slum dwellers.

Training center for Youth-Career skills for under-privileged youth.

No matter how the Group chooses to repay its debt to society, the reason will always be the same: to acknowledge that some of its best assets are not always those that show up on its balance sheet.

LOYALTY PROGRAMME
The Landmark Group is dedicated towards enhancing its relations with its customers by improving its service and offerings to customers, thus building loyalty. One such major step towards this goal is the initiation of a loyalty programme by the Group, Centrepoint Privilege Club (CPC) in the Middle East and The Inner Circle (TIC) in India. The Group aims to make its customers feel truly rewarded and enhance their shopping experience to the fullest with the help of its loyalty programme. Both the programmes, the Centrepoint Privilege Club and The Inner Circle offer their club members a variety of promotions, saving opportunities and benefits and, have been widely successful.

MAX ,the brand which started as a single store in Abu Dhabi and which now became one of the largest value fashion retail chains in the Middle East with over 85 stores spread across 9 countries in Mena region and Asia . MAX is a fashion and footwear retailer in the value segment . It has its own label clothing for men, women and children , as well as footwear MAX is opening around 100 stores across INDIA, is a division of Lifestyle International Pvt.Ltd. which is a part of US $ 1 billion Landmark Group. Landmark group is one of the largest retailers in the Middle East with over 500 stores across 8 countries, directly employing 10,000 people. It has already opened stores in Indore, Ahmadabad, Bangalore, Delhi-Rajouri Garden, Agra, Hyderabad, Luckhnow, Mumbai, Noida and Delhi Laxminagar. A good shopping experience and a great value at Max translate into making customers Look good and Feel good to the maximum. Max a value retail store for the family was launched in May 2004 in the UAE. With stores that typically measure between 25,000 to 30,000 sq. ft. With 85 stores across UAE, Saudi Arabia, Jordan, Kuwait, Bahrain, Qatar, Oman & India, Max plans to expand its network in more potential markets within the Middle East, Turkey and India to build a significant presence for the brand by targeting to have 100 stores by 2009.

KEY FACTORS
 Contemporary fashion at affordable prices.  International design & ambience
9

 Family store with core Target audience between 18- 35 yrs.  Average Store size 18,000 sq. ft.  Landmark Group (Dubai) launches first Max Retail Store in Lucknow

OUR VISION
To create truly global brand that provides growth oppourtunities for the company and

employees whilst achieving its goal of becoming the no. 1 value fashion retailer across the Middle East and India.

OUR MISSION STATEMENT VALUES

 Be a market leader in the field of value retailing .  Provide fashionable product at affordable prices .  Be innovative , cost effective and globally competitive  Exceed our customers expectation .  Provide oppourtunities of growth for our employees.

10

LOYALTY PROGRAMME

The Loyalty Programme of MAX is THE INNER CIRCLE (TIC) . Its a membership card which is given to the customers on shopping of Rs.999 only . All informations regarding sale, rates are provided to the card holders on their phone or on e mail.The another benefit of this card is that on every 50 Rs. of shopping they(customers) will get 1 point and after completing 147 they will get 1 free gift voucher from company side absolutely free. All points are redeemed at the time of biling. Customers have to fill TIC membership form. In this form they have to fill following details-

Name of the customer

Residential address including Pin code

Contact nos, email address

Date of birth, gender

Occupation

Marital status

Anniversary date

Date of birth

Declaration with customers signature

11

Max celebrates its 5th year anniversary

During the celebration

12

.ORGANISATIONAL

SETUP OF MAX

CEO

ED

V.P. OF OPERATIONS

V.P. OF FINANCE

V.P. OF SUPPLYCHAIN CHAIN

V.P. OF BUYING

HEAD OF BUYING

HEAD OF MARKETING

HEAD OF HR

REGIONAL MANAGER OF NORTH ZONE

REGIONAL MANAGER OF WEST ZONE

AREA MANAGER OF MAHARASHTRA

AREA MANAGER OF GUJARAT

13

MAX AT KHARGHAR

HIERARCHICAL SETUP OF STORE

STORE MANAGER

ASST.STORE MANAGER

DEPPARTMENT MANAGER(wester nwear,ethnic,access ories)

DEPARTMENT MANAGER(kids wear)

DEPARTMENT MANAGER(mens wear)

SR.CRE

SR.CRE

SR.CRE

CRE

TR.CRE

CRE

TR.CRE

CRE

TR.CRE

14

STORE SETUP

A) DIFFERENT

DEPARTMENTS:

Whole store is divided into mainly 3 parts i.e.

APPAREL , CONCESSIONARIES and ACCESSORIES. Again these departments are divided into various sub departments which are listed as below-

APPARELS- These brands are inhouse brands i.e. max brand.

1. Western wear
y y y y y y y y

Basic Core Young Fashion Denim Formal Wear Semi Formal Wear Sports wear Night wear

2. Ethnic Wear
y y y y y

Fusion Traditional Ethnic wear men Ethnic wear boys Ethnic wear girls

3. Kids Wear
15

y y y y y y y

Infants girls Infant boys 2-8 years Girls 2-8 years Boys 8-14 years girls 8-14 years boys Sleepwear

4. Mens Wear
y y y y y y y y y y

Casual Denim OB casual non denim OB Formals OB Casual Denim Casual Non Denim Formal Wear Fashion formal Semi Formal Wear, semi formal OB Innerwear Sports wear

CONCESSIONARIES- These brands are outsourced brands.

y y y y y y

Petter England Celestial Horse Mens Belt New Hide Mens Wallet and Belt Fersia Tyes Velvette E Sumitsu Bags

16

ACCESSORIES- It includes in house brands.

y y y y

Fashion jewellery Leather accessories Neckwear Eye Wear

GLIMPSE OF DIFFERENT DEPARTMENTS

WESTERN WEAR

MENS WEAR

17

ETHNIC WEAR

ACCESSORIES

B)TOTAL NUMBER OF EMPLOYEES: There are total 36 no. of

employees in which 1 is S.M., 1 is A.S.M., 3 D.M. i.e one for each section like one for kids wear, one for mens wear and one for womens wear(including both ethnic and western section).

Senior CRE.: 3 (one in each section)

CRE: 8

Tr.CRE: 6

Brand Promoter (for outsourced brand of mens wear i.e.Peter England): 1 Inventory Executive: 1

Head Cashier: 1

Cashiers: 3

Tailor :1
18

House keeping : 3

Maintenance manager :1 Security : 3

C)BASIC FUNCTIONS DONE ON FLOOR:

is performed by floor staff on daily basis like

There are various functions which

Selling.

Displaying of garments or visual merchandising

Customer handling( convincing , suggesting )

Aware the customers about new offers

Providing customer service(alteration , changing of garments ) ,but

there are some conditions also.

Managing receipts.

Managing promotions

D) BACK OFFICE OPERATIONS: There are various operations

which have been done in backoffice like:

19

HR functions

Marketing strategies

Financial operations

Inventory management

Making of reports(daily sales report, hourly sales report, KPI etc.)

FUNCTIONS OF HUMAN RESOURCE DEPARTMENT

  

Take care of staff attendance.

Checking of different Registers. Maintainance of leaves i.e. earned and availed. According to the leave

policy.     

Doing performance appraisal

Updating Leave cards

Take care of Punctuality of employees

Checking out the grooming standards. Recruitment and selection.

20

 

Take care of joining formalities of new employee. Take care of exit formalities of the staff(exit interview,full and final

settlement , training and development .

21

CHAPTER-4 REVIEW OF LITERATURE

DEFINITION - Performance appraisal is the step where the management finds out how
effective it has been at hiring and placing employees. It is the assessment of an individuals performance in a systematic way, the performance being measured against such factors as job knowledge , quality and quantity of output,initiative ,leadership etc.

The other terms used for performance appraisal are: performance rating employee assessment, employee performance review,personnel appraisal,performance evaluation, employee evaluation and merit rating(oldest term used).

HISTORY OR TRADITIONAL APPROACHThe 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. 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. Without a structured system of performance evaluations leads to serious motivational, ethical, and legal problems in the workplace.

22

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. Pay rates were important, yes; but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence. As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time.

MODERN APPROACH-

Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. As performance appraisal is part of organizational control, the components of the control system are: control standards, measurement, and corrective actions (Newman, Warren & McGiIl, 1987). Among these three phases, control standards are based primarily on organizational missions or departmental goals, which reflects the role a performance appraisal plays in the organization. Measurement is concerned with the actual appraisal process, including the appraiser, appraisal criteria, appraisal methods, and appraisal timing. Corrective actions comprise the feedback processes after the performance appraisal is completed.

23

OBJECTIVES OF PERFORMANCE APPRAISAL:There are two objectives of performance appraisal: 1. PRIMARY OBJECTIVE: To ensure the maximum utilization of every employees skills , knowledge and interests. 2. SECONDARY OBJECTIVE To enhance employer-employee relations , permiting HR to perform key tasks more effectively and motivating employees to pursue goals that are compatible with organizational goals.

PERFORMANCE APPRAISAL SYSTEM :An effective performance appraisal system contains two basic components : an evaluation component and a feedback component.

The main aim of the evaluation system is to identify the performance gap (if any). This gap is the shortfall that occurs when performance does not meet the standard set by the organization as acceptable. The main aim of the feedback system is to inform the employee about the quality of his or her performance. (However, the information flow is not exclusively one way. The appraisers also receives feedback from the employee about job problems, etc.)

OTHER PURPOSES Salary  Determining transfers and job assignments  For training and development  Promotion  Retention and termination  For recognition  Evaluation of HR systems.
24

One of the best ways to appreciate the purposes of performance appraisal is to look at it from the different viewpoints of the main stakeholders: the employee and the organization.

Employee Viewpoint

From the employee viewpoint, the purpose of performance appraisal is four-fold: (1) Tell me what you want me to do (2) Tell me how well I have done it

(3) Help me improve my performance (4) Reward me for doing well.

Organizational Viewpoint

From the organization's viewpoint, one of the most important reasons for having a system of performance appraisal is to establish and uphold the principle of accountability.

For decades it has been known to researchers that one of the chief causes of organizational failure is "non-alignment of responsibility and accountability." Nonalignment occurs where employees are given responsibilities and duties, but are not held accountable for the way in which those responsibilities and duties are performed. What typically happens is that several individuals or work units appear to have overlapping roles.

The overlap allows - indeed actively encourages - each individual or business unit to "pass the buck" to the others. Ultimately, in the severely non-aligned system, no one
25

is accountable for anything. In this event, the principle of accountability breaks down completely. Organizational failure is the only possible outcome.

In cases where the non-alignment is not so severe, the organization may continue to function inefficiently. Like a poorly made or badly tuned engine, the non-aligned organization may run, but it will be sluggish, costly and unreliable . One of the principal aims of performance appraisal is to make people accountable.

WHO WILL APPRAISE?

360 degree performance appraisal When appraisal is made by superiors, peers , subordinates and clients . Immediate supervisor The assessment is made by supervisors from the job description point of view. Subordinates Subordinates can assess the performance of their superiors from relationship and guidance point of view. Rating committees These committees are composed of the employees immediate supervisor and three or four other supervisors who come in contact with the employee . This choice is taken when an employee performs variety of tasks in the course of her/ his job . Self appraisal The employee herself or himself evaluates her or his performance . Peers Peers are in a better position to evaluate certain facts of job performance which the subordinates or supervisors cannot do .Such facts include contribution to workgroup projects , interpersonnel effectiveness , reliability , communication skills and initiative .

26

METHODS OF PERFORMANCE APPRAISAL

1. Critical incident method The critical incidents for performance appraisal is a method in which the manager writes down positive and negative performance behavior of employees throughout the performance period 2. Weighted checklist This method describe a performance appraisal method where rater familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behavior on jobs 3. Paired comparison analysis Paired comparison analysis is a good way of weighing up the relative importance of options. A range of plausible options is listed. Each option is compared against each of the other options. The results are tallied and the option with the highest score is the preferred option. 4. Graphic rating scales The Rating Scale is a form on which the manager simply checks off the employees level of performance. This is the oldest and most widely method used for performance appraisal. 5. Essay Evaluation This method asked managers / supervisors to describe strengths and weaknesses of an employees behavior. Essay evaluation is a non-quantitative technique This method usually use with the graphic rating scale method. 6. Behaviorally anchored rating scales This method used to describe a performance rating that focused on specific behaviors or sets as indicators of effective or ineffective performance.

27

It is a combination of the rating scale and critical incident techniques of employee performance evaluation. 7. Performance ranking method Ranking is a performance appraisal method that is used to evaluate employee performance from best to worst. Manager will compare an employee to another employee, rather than comparing each one to a standard measurement. 8. Management By Objectives (MBO) MBO is a process in which managers / employees set objectives for the employee, periodically evaluate the performance, and reward according to the result. MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods) 9. 360 degree performance appraisal 360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them. 10.Balance scorecard The balance scorecard is a strategic planning and management system that is used extensively in business ,government and non profit organizations to align business activities to the vision and strategy of the organization.

RATING ERRORS:
The problem of common rating errors seen on performance appraisals nationwide: Leniency Error: Giving everyone high ratings Central Tendency Error: Rating everyone in the middle. Recency Error: Basing ratings on recent events. Halo Error: Playing favourites in the rating process.

28

Horns Effect: Getting back at employees.

STEPS FOR DEVELOPING A SYSTEMATIC PERFORMANCE APPRAISAL

Identify key performance criteria

Design an appraisal programme

Collect performance information

Conduct an appraisal interview

Evaluate the appraisal process

29

COMPARATIVE STUDY OF CASES

On a comparison of the best practices in the Performance Appraisal System, it has been found that there are certain unique traits possessed by 3 of the leading organisations.

HUGHES ESCORTS

NATIONAL PANASONIC

LARSEN AND TOUBRO

Its a telecom company .

Its a Japanese white goods major.

Its an engineering major.

Competency based performance enhancement model. Each position is defined in terms of 23 competencies.

Performance assessment system driven by KRAs.

Developed competency matrix.

KRAs describes performance goals.

It lists 73 competencies that vary across managerial levels

The competencies are categorised into 4 groups: attitude based knowledge driven skill centered and value based.

The goals are divided into business ,functional and behavioural.

Each competency has associated knowledge, skills and attributes.

On the basis of these competencies the shortfalls

These KRAs used to map the employees progress and

The company appraises each employee according to

30

are measured and to overcome this training input is given.

then performance gaps are filled by providing training

competencies and training is provided if needed.

inputs. Focused on relearing and More emphasis on reskilling reskilling. .

31

PERFORMANCE APPRAISAL AT MAX RETAIL(KHARGHAR)

World over , retail as an industry , employs a significantly high number of people . However in India attracting people to this industry and then retaining them is a challenge. With the emergence of multiple formats , the demand for manpower is increasing and at the same time, has led to high attrition rates among most of the organised players in the market. Under such circumstances , the special significance of the function of human resources cannot be undermined. In MAX there is a triad which is working together i.e.- HR professionals , store managers and employees. HR professionals are responsible for making HR policies that reinforce the retailers strategy and provide the tools and training used by line managers and employees to implement the policies . The line managers primarily work in the stores are responsible for bringing the policies into their daily management of employees . Finally , the employees also puts a contribution into the human resource .They play an active role in providing feedback on the policies , managing their own carriers , defining their job function etc. The basis for performance evaluation in MAX is the goals that have been set. Goals make the expected level of performance clear and also help to improve the performance by measuring the progress of a task . The performance appraisal in MAX is called as BASIC PERFORMANCE MANAGEMENT SYSTEM(BPMS) , which has been done to build the capacity of each employee to achieve individual and company objectives , also to ensures the highest level of performance and to advance mission , vision and values of the company . Here LIFESTYLES BPMS is applied and in form also Lifestyles BPMS is written thats why the mission , vision and core values of Lifestyles company is followed. In this company the appraisal has been done by the immediate supervisors of the employees , for
32

example the appraiser of CREs is their department manager , appraiser of department manager has been done by store manager . The performance appraisal in a company is done in financial year i.e. on 31 march to april . It is annually done or only once in a year. There is a goal sheet for every designation which is prepared according to their job requirements and the objectives of the company . There are certain job responsibilities for every position which company describes in document called as POSITION DESCRIPTION DOCUMENT. In this document the responsibilities of every job holder is described to make the role of the job very clear , so that they(employees) can perform their job effectively and efficiently . This document also clears the basic qualification required in that particular job as well as advanced qualification , how many experience is required which is divided into two parts i.e. minimum experience and specific experience and also tells about the competencies (skills and capabilities) which should be present in that particular job holder . It also consists of certain key result areas with their measures also which comes under the option of deliver. These key result areas is prepared on the perspective of financial ,customer , current process(internal) and build for future .Here internal means adherence to SOPs i.e. standard operation procedure which gives a guidance note to the employees that in which way the store operations should run in a standardised manner .Build for future is related to the development of employees, that how many training programmes attended and also the percentage of improvement after training. Along with this there is another part named as job interaction in which to whom interaction is necessary is described with the nature of interaction. This document is provided to all employees of the company . Now the performance appraisal in MAX is done on the basis of Goal Sheets which is a part of BPMS form . This is a first section in which KRAs is mentioned with their goals and measures and weightage for particular KRA is also given . Next part is Final Appraisal in which the views of both i.e. the appraisers view and the self appraisal inputs given by appraise itself is recorded against
33

goals . After this overall weightage is calculated .There is a Performance Rating Scale on the basis of which final conclusion is drawn about the employee. In this scale certain ranges are present which determines the level of employee. The ranges are : If the achievement level is 105- 110 % against the measured performance then it means that employee significantly meet expectation(SME) . If the achievement level is 95-105 % ,it means employee fully meets expectations(FME). If the achievement level is 95-80% ,it means employee mostly meets expectation(MME). If the achievement level is 65-80% ,it means employee somewhat meets expectation(SME). If the achievement level is 50-65% , it means employee meets few expectation(MFE). If the achievement level is below 50% ,it means employee significantly below expectations(SBE). Another part of BPMS is Performance Feedback section . In this section the appraiser highlights all the strengths ,areas of improvement, achievements and business value for the organization. After this part of Promotion Recommendation is come ,where on the basis of performance promotion is given by mentioning the reason for the same as well as current designation along with recommrnended designation. Finally the Employee Feedback Form is given to employees to know about the companies work like they received training or not ,their goal setting process was good or not etc. The main aim for doing this thing is to know about the satisfaction level of employees regarding with companys process. So this is the way of performance appraisal takes place in MAX retail.

34

CHAPTER-5 RESEARCH METHODOLOGY

WHY RESEARCH IS BEING DONE?

Research is the systematic process of collecting and analyzing information in order to increase the understanding of the process about which we are concerned or interested. The research on performance appraisal is done to know the role of it and how it helps the organization and its employees to achieve their goals. The research is also done to measure the satisfaction level of employees regarding prevailing process of performance appraisal in the company.

RESEARCH METHODOLOGY-

Project on role of performance appraisal in Max retail is a type of exploratory research. Exploratory research is conducted to classify the problems. It crystallizes the problems and identifies the information needed.Inspite of this, mainly the study is based on observation so its an observational research also.

METHODS OF DATA COLLECTION-

Research is majorly based on secondary data and primary data is also used. Primary data: The data which is collected first time. Secondary data: The data which is collected on the basis of pre-existing data.

SOURCES OF DATA COLLECTION-

PRIMARY DATA: Questionnaire closed ended.

35

SECONDARY DATA: SOPs file . Companys documents. Companys website. Companys magazine

INFORMATION REQUIRED

y y y y y

Main problem . Who are the audiences(employees). Whole process of performance appraisal . Feedback from employees . Documents of company .

SAMPLE The sample is the group of people who is selected for doing the study. Sample taken for study is MAX STORE at KHARGHAR. Its size is7800sq.ft.

36

CHAPTE

ATA INTE PRETATION AND ANAL

IS

1. Quality f pe so al o jective?

80%
70%

60%
50% 40% Yes No

30%
20%

10%
0%

Personal Objective

Int rpr tation:Fro above graph we can say 80% e ployeeshave clear personal
objective and 20% have not .

Se ial no 1 2

Particular Yes No otal

Ans status 80% 20% 100%

37

2.Transpar ncy in t am objective.

Serial no. 1 2

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Yes No

Interpretation:Graph is showing there is 100% team objective.

Particular Yes No Total

Ans Status 100% 0% 100%

Team objective

Yes No

38

3.Feed bac about their progress.

Serial no. 1 2

100%

80% 60% 40%

20% 0%

about their progress work and 90% are not.

Interpretation:From the above graph we can say 10% employees are giving feedbac

Partculars Yes No otal

Ans status 10% 90% 100%

Feedback

Yes
No

Yes No

39

4.Proper incentive after achieving target.

Serial no. 1 2

Particulars Yes No otal

Ans status 50% 50% 100%

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Yes No

Interperetation:

he graph is showing that 50% employees are getting incentive after achieving

target and 50% are not.

 

Proper incentive

Yes No

40

5.Progress towards the growth of qualification.

Serial no. 1 2

Particulars Yes No otal

Ans status 70% 30% 100%

Progress towards qualification

80%
70% 60%

50%
40% 30%

20% 10%
0%

Yes

Interpretation: From the above graph 70% employees are saying there is scope of progress towards the qualification and 30% employees are saying not.

Yes No

No

41

6.Promotion

Serial no. 1 2

Particulars Yes No otal

Ans status 20% 80% 100%

80%
70% 60%

50% 40%
30% 20%

10%
0%

Yes

Interpretation: Graph is showing that

employees are not getting.

Promotion

Yes
No

No

20% employees are getting promotion and 80%

42

7. Success are recorded.

Serial no 1 2

Particulars Yes No otal

Ans status 30% 70% 100%

Success are recorded

80% 70%
60% 50%

40% 30%
20% 10%

0%
Yes No

Interpretation: Graph is showing that 30% employees are saying that success whether it is small or big is been recorded for performance appraisal and 70% are not.

Yes No

43

8.Scope of training & development.

Serial no 1 2

Particulars Yes No otal

Ans status 40% 60% 100%

70%
60% 50%

40%
30%

20%
10% 0%

Yes

Interpretati n:Graph i showi

favour.

T&D

Yes
No

No

that 40%employees are getti g T&D and 60% are not in

44

CHAPTER-7 FINDINGS

Most of the employees are not satisfied from the process of performance appraisal of the company as they said there is no or little bit of growth .

Central tendency and recency error mostly occurs during appraisal.

Attrition rate is high .

High working pressure .

Proper orientation and induction is not given .

Giving promotion takes long time . Maintains attendance on 20-20 basis i.e. from 21st 20th of the month instead of 1st 31st of the month. The reason behind this to decrease the attrition rate .

Uniform policy- AT the time of joining when employees apply for uniform their 1500 Rs. is deducted equally for 2 months and the same amount is added to their account after completion of 6 months of continuous job because this is the confirmation period of Max for their new employees . The reason is that the employees who left their job after two to three months will bear the expense of uniform.

Most of the lower level of employees leave the job without giving any intimation .If that particular employee will not come for next 15 days continuously without any information then company send a warning letter to him/ her for such type of doing irregularity and then also if the employee will not respond within 5 days ,then company fire that particular employee .

Meeting is conducted on every Saturday to discuss the achievements ,about any new rule ,etc.
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Tailor , Repair and Maintenance staff do not receive salary .

Higher targets on Saturday and Sunday as compare to rest of the days .

Every week a star performer of the week is chosen from the lower level of staff i.e. from CRE s on the basis of making highest bill from the customer and a small reward is also given i.e. a dairymilk chocolate in order to motivate them.

Once in a year a test is conducted to check the level of knowledge about the on the floor functions as well as backend operations. The name and photo of the topper is published in the companys magazine with the incentive .Other passed candidates who scored more than 50 is also given incentive of 1000Rs.

As Max is situated in Dubai also ,an oppourtunity is provided to Indian employees to pursue their job in Dubai also in case of vacancy at Dubai branch . For this an interview is taken from the HR of the interested employees.

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CHAPTER-8 LIMITATIONS

The HRD department is still largely ignored. There was no proper set up of HRD functions.

Everything about the functions of an HR Manager was told by our store manager because there was only one HR Manager for both the places i.e.Vashi and Kharghar.So most of the times he was not available .

No practical exposure was given in performance appraisal, recruitment etc.They told all the things orally .

Due to lot of work, mostly employees were busy in their work only.

No proper guidance was given.

Lack of time as the duration of internship was only 45 days.

Problem was there during taking or asking of any kind of feedback from the employees about the policies and process of company because they were not frank.

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CHAPTER-9 SUGGESTIONS

 Multiple sources of information should be used in doing performance appraisal.  Offering adequate support and assistance to employees, such as development opportunity.  Performance appraisal should be conducted twice in a year.  One meeting should be conducted with every individual to find out the difficulties they are facing.  There should be a suggestion box or diary for staff only, so that they can write their thoughts and needs.  There should be proper training for new joinies.  Proper announcement should be conducted during the promotions.  Punctuality of staffs should be maintained.  Daily announcement in store should be done about the targets of different departments and also about the yesterdays achievement.  Before opening the store for customers, a common motivational song or like anthem of the company should be played.  Proper canteen facility should be there and the items should be sold in reasonable prices.  There should be proper security at trial rooms.

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CONCLUSION

The present study has made an attempt to understand the role of performance appraisal in an organization. The organization has good reputation in India as well as in outside of India. It is a multinational company. After completing the study I came to know that performance appraisal plays an important role not only for the growth of an organization but also for the employees growth. The facilities that they are providing is good like mediclaim ,salary advance etc.In case of performance appraisal process in the company it need little bit improvement which helps the organization in anchoring of employees and it automatically results in the growth of an organization.

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BIBLIOGRAPHY

Human Resource K.Aswathapa

Marketing ResearchKOTHARI

Companys(Max) SOP File

Maxs Magazines

www.landmarkgroup.com

www.maxretailfashionstore.com

www.indianinfoline.com

www.compareindia.com

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ANNEXURE
Performance appraisal questionnaire
I/ Employee information 1. Employee name:

2. Position:

3. Department:

4. Start working from: II/ Rating scales Yes / No / NA

Q.1

Quality of personal objective .

Ans.

Yes

No

NA

Q.2

Team objectives do not exist.

Ans.

Yes

No

NA

Q.3

Feedback about their progress.

Ans.

Yes

No

NA
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Q.4

Proper incentive after achieving target.

Ans.

Yes

No

NA

Q.5

Progress towards the qualification.

Ans.

Yes

No

NA

Q.6

Getting promotion.

Ans. Q.7

Yes

No

NA

Successes are rarely recorded.

Ans.

Yes

No

NA

Q.8

Giving proper training & development

Ans.

Yes

No

NA

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