INTRODUCTION

1.1 Overview of the topic

An organization is a group of individual working towards achieving pre-determined goals and

targets set by the organization. Performance appraisal is a corner stone of an organization.
How performance appraisal should be, what can the need of modifications. So, this attempt to
know the appraise about the performance appraisal system. Under the topic of "A STUDY
ON THE IMPACT OF ENTERPRISE RESOURCE PLANNING TOWARDS
PERFORMANCE APPRAISAL SYSTEM FOR EMPLOYEES AT ROYAL DURGA
LOGISTICS COMPANY LIMITED, BENGALURU".

The Process of HRD helps the employees to acquire and /or develop technical, managerial
and behavioural knowledge, skills and abilities and moulds the values, beliefs and attitudes
necessary to perform present and future roles. The Process of performance appraisal helps the
employee and the management to know the level of employee's performance compared to the
standard/pre-determined level.

Performance appraisal is essential to understand and improve the Employees performance

through HRD. In fact, performance appraisal is the basis for HRD. It was viewed that
performance appraisal was useful to decide upon employee management indicate that
performance appraisal is the basis for employee development. Performance appraisal
indicates the level of desired performance level, level of actual performance and the gap
between these two. This should be bridged through human resources development techniques
like training, executive development etc.

MEANING

Performance appraisal is a method of evaluating the behaviour of employee in the Work-spot

normally including both the quantitative and qualitative aspects of job performance.
Performance here refers to the degree of accomplishment of the tasks that make up an
individual's job. It indicates how well an individual is fulfilling the job demands. Often the
term is confused with effort, but performance is always measured in terms of results and not
effect.
DEFINITION

"A Systematic periodic and so for as humanly possible and impartial rating of an employee’s
excellence in matters pertaining to their present job and to his potentialities for a better job. It
is systematic in that it evaluates all performance; in the same manner utilizing the sum
approaches so that the rating obtained from separate personal are comparable. It is undertaken
periodically according to plan. its attempts to reduce, it’s not to eliminate human bias and
prejudice, by means of system that is subject to impartial review and cheek".

---Edwin. B. Flippo.

"Employee appraisal or personal performance appraisal is a systematic evaluation of a

worker's performance & potential for development it is a process of estimating or judging the
value, excellence, qualities or status of sum subject, person or thing”.

---Andrew, F. Sikula

1.2 Theoretical Background of the Study

PERFORMANCE ASSESSMENT

Performance assessment one of the principal parts and common actions used to organize a
business delicate performance appraisal use to estimate the performance of the human
resources connected with past, present, and anticipated performance so that appropriate
decision can be made. Performance appraisal is to perform of assessing employee job
performance and providing responses to those recruits about both optimistic and pessimistic
aspects of their performance. Performance dimensions are very vital both for the organization
and the individual; for they are the most important data used in shaping salary increases,
promotions, and, in the case of workers who perform disappointingly, discharge.

PERFORMANCE MANAGEMENT

Performance management is a target-oriented course of action going towards ensuring

administrative progressions by remaining popular in habitation towards exploit proceedings
& efficiency of employees, teams, and ultimately, organization. It acts as supreme player
accomplishing managerial stratagem that implicates determining and refining the value of
workforce.
USES OF PERFORMANCE APPRAISAL

For numerous establishments, primary objective of an assessment system is to improve

individual directorial performance:

 Human resource planning

In assessing a firm’s Human Resources, data have to be presented categorize individuals

that have impending to be encouraged or for any of domestic employee associations. In
course of routine assessment, it may reveal that there is an unsatisfactory number of
employees who 19 prepare to arrive organization. The procedure can be completed aimed
at larger prominence taking place administration growth. Well-made evaluation methods
provide outline of administration’s human resource powers and faults to sustenance their
exertion.

 Recruitment and selection

Performance assessment ratings may be accommodating in predicting presence of job

applicants. A firm's thriving employees demonstrate assured behaviours when performing
key tasks. These data may endow with a benchmark for evaluating aspirant response
obtain during behavioural interviews, invalidating selection tests, employee ratings may
be used as unpredictable against test scores are compared. Fortitude of the selection test
influence would depend on the exactness of appraisal results.

 Training and development

Performance appraisal must point out employees explicit for working out and
development. If dense finds that quantity of first-line supervisors is having involvedness
in administering punitive action, training sessions addressing this problem may be
appropriate. By identifying deficiencies that negatively have an effect on Performance,
Training and Development programs can urbanize those consent individuals to construct
on their strengths and curtail their deficiencies. Appraisal systems do not promise
properly trained and developed employees. However, influential Training and
development needs are particular when appraisal data are available.
  Career planning and development

Career planning is enduring process in personage set vocation goals and identifies the
means to accomplish them. Career development is a prescribed approach used by
organization to ensure that people with the appropriate credentials experiences is
available

PROCESS OF PERFORMANCE APPRAISAL

Performance appraisal is the process of identifying unambiguous performance goals.

Appraisal system possibly cannot successfully serve every anticipated purpose, so
management should select the definite objectives it believes to be most important and
pragmatically possible. Besides many assessment systems fall short because management 20
expects to large extent from one progression and does not settle on particularly what it wants
the organization to get done the goals.

The continuing cycle endures with launching performance criterion (standards)

communicating these performance opportunities to those concerned. Then the work is
performed and the superintendent appraises the performance. By closing stages of appraisal
period, assessor and worker collectively evaluate work performance and estimate and align
with established performance standards. This assessment helps to settle on how well
employees have met these principles, determine reasons for deficiencies, and along with
develops plan to resolve problems. In the end, goals are set for next evaluation period, and
cycle repeats.

Make developmental plans

Monitor goal process

Undertake development

Admisinstration decisions

Figure 1.1: Process of Performance Appraisal.

NEED FOR PERFORMANCE APPRAISAL

Performance appraisal is needed in order to:

 Provide information about the performance ranks. Decision regarding salary fixation,
confirmation, promotion, transfer and demotion are taken based on performance in
Indian Rayon.
 Provide feedback information about the level of achievement and behaviour of the
subordinate. This information helps to review the performance of the subordinate,
rectifying performance deficiencies and to set new standards of work, if necessary, as
practiced in Raymond's.
 Provide information which helps to counsel the subordinate.
 Provide information to diagnose deficiency in the employee regarding skill,
knowledge, determine training and developmental needs and to prescribe the means
for employee growth provides information for correcting placement.
 To prevent grievances and in disciplinary activities as in the case of Glaxo.

FEATURES OF PERFORMANCE APPRISAL

Some of the important features of performance appraisal may be captured thus:

 Performance appraisal is the systematic description of an employee's job-relevant

strengths and weaknesses.
 The Basic purpose is to find out how well the employee is performing the job and
establish a plan of improvement.
 Appraisals are arranged periodically according to a definite plan.
 Performance appraisal is not job evolution. It refers to how well someone is doing the
assigned job. Job evolution determines how much a job is worth to the organization
and therefore, what range of pay should be assigned to the job.
 Performance appraisal is a continuous process in every large-scale organization.
OBJECTIVES OF PERFORMANCE APPRAISAL

Performance appraisal aims at attaining the different purposes. They are:

 To create and maintain a satisfactory level of performance.

 To contribute to the employee growth and development through training, self and
management development programmers. Tata Power aims at employee development
through performance appraisal.
 To help the superiors to have a proper understanding about their subordinates.
 To guide the hob changes with the help to continuous ranking.
 To facilitate fair and equitable compensation based on performance.
 To facilitate for testing and validating selection tests, interview techniques though
comparing their scores with performance appraisal ranks.
 To provide information for making decisions regarding lay-off, retrenchment etc.,
 To ensure organizational effectiveness through correcting the employee for standard
and improved performance and suggesting the change in employee behaviour.

PURPOSE

Performance appraisal aims at attaining the different purposes. They are;

 To create and maintain a satisfactory level of performance.

 To contribute to the employee growth and development through training, self and
management development programmes.
 To help the superiors to have a proper understating about their subordinates.
 To guide the job changes with the help to continuous ranking.
 To facilitate fair and equitable compensation based on performance.
 To facilitate for testing and validating selection tests, interview techniques through
comparing their scores with performance appraisal ranks.
 To provide information for making decisions regarding lay off, retrenchment etc.,
 To ensure organization effectiveness through correcting employee for standard and
improved performance and suggesting the change in employee behaviour.
ETHICS OF APPRAISAL

In any performance appraisal, due consideration must be given to the ethics of appraisal,
failing which many organizational problems may crop up and the very purpose of appraisal
may be defeated. In this connection, M. S. Kellog has suggested the following do's and
don'ts.

 Don't appraise without knowing why the appraisal is needed.

 Appraise on the basis of representative information.
 Appraise on the basis of sufficient information.
 Appraise on the basis of relevant information.
 Be honest on your assessment of all the facts you have obtained.
 Don't write one thing and say another.
 In offering an appraisal, make it plain that this is only your personal opinion of the
facts as you see them.
 Pass on appraisal information only to those who have good reason to want it.
 Don't imply the existence of an appraisal that has not been made.
 Don't accept another's appraisal without knowing the basis on which it was made.

Kellog maintains that these "ethical standards are most certain to be met if appraisals are
accomplished by such qualifiers as:

 The fact on which an appraisal is based.

 The time period covered,
 The Purpose for which an appraisal is made.
 The situational factors which shed light on the facts presented.
 The nature of the appraiser's working relationship with the appraised, and
 An explanation of how and where the facts were obtained".

Employee performance appraisal involves several aspects. These include the following.
 The processes and procedures of evaluating performance in the job
 Regular assessments to determine how well the employee is doing
 Records and discussions of performance levels
 Central HR control and co-ordination
 The resultant findings used in other HRM areas (e.g., HRP, training)
However, it needs to be recognised that tensions and critical evaluation are involved in the
area of appraisal, in the following categories.

1. Between measuring past performance versus future potential. Performance appraisal

generally looks more to the past and performance management tends to look more
forward in an active way.
2. Between different schools of thought which emphasise the importance of methods,
systems and procedures versus the skills of managers. The latter school of thought is
gaining some popularity – for instance, in some organisations skills in appraisal may
now be seen as a basic managerial attribute.
3. Between the extent to which different issues are deal with simultaneously. To what
extent are evaluation issues (such as pay and promotion) discussed at the same time as
development issues (such as measures to improve performance, objectives and career
development).
4. Between closed systems and open systems. Organisations sometimes gather
performance data by means such as ‘mystery customers’ and computer monitoring.
There are ethical issues in this type of data gathering such as the question of whether
there are rights to privacy at work. This is especially important as appraisal is
normally considered to be built on trust.

360° PERFORMANCE APPRAISAL

The appraiser may be any person who has through knowledge about the job content, contents
to be appraised, standards of contents and who observes the employee while performing a
job. The appraiser should be capable of determining what is more important and what is
relatively less important. He should prepare reports and make judgments without bias.
Performance appraisal by all these parties is called "360° Performance Appraisal". Pond's
General Electric, Hindustan Lever Limited. Grasim, Colgate-Palmolive, Hewlett-Packard,
practice 360° Performance appraisal.

 Supervisors: Supervisors include superiors of the employee, other superiors having

knowledge about the work of the employee and department head or manager. General
practice is that immediate superiors appraise the performance which in turn is
reviewed by the departmental head/manager.
 Peers: Peer appraisal may be reliable if the work group is stable over a reasonably
long period of time and performs tasks that require interaction. However, little
 research has been conducted to determine bow peers establish standards for
evaluating others or the overall effect of peer appraisal on the group's attitude.
 Subordinates: The concept of having superiors rated by subordinates is being used in
most organization today, especially in developed countries. Such a novel method can
be useful in other organizational settings too provided the relationships between
superiors and subordinates are cordial

CHALLENGES OF PERFORMANCE APPRAISAL

With the increased significance of performance appraisal, challenges, confronting the system
are mounting. One serious challenge facing the performance appraisal system relates to
assessment of self-managed team. Popularly called empowered teams. These self-managed
teams create special challenges for performance appraisal empowered teams perform without
supervisor. Historically, if one recalls, it is the supervisor who assesses the performance of his
or her subordinates.

Another challenge is that both, individual and team performance, need to be measured. A
suitable device needs to be developed to assess the performance of empowered teams because
more and more firms use such teams to enhance productivity.

Challenges:

 Create a culture of excellence that inspires every employee to improve and lend
himself or herself to be assessed.
 Align organizational objectives to individual aspirations
 Clear growth paths for talented individuals
 Provide new challenges to rejuvenate careers that have reached the plateau stage
 Forge a partnership with people for managing their careers.
 Empower employees to make decisions without the fear of failing
 Embed teamwork in all operational processes
 De-bureaucratize the organization structure for ease of flow of information.

WHY APPRAISAL TECHNIQUES PROVE FAILURE?

Performance appraisal techniques have often failed to give a correct assessment of the
employee. According to Zavala, the causes of such failures are;

a) The Supervisor plays dual and conflicting role of both the judge and the helper.
 b) Too many objectives often cause confusion.
c) The supervisor feels that subordinate appraisal is not rewarding.
d) A considerable time ago exists between two appraisal programmes.
e) The skills required for daily administration and employee development are in conflict.
f) Poor communication keeps employees in the dark about what is expected of them.
g) There is a difference of opinion between a supervisor and a subordinate, in regard to
the letter’s performance.
h) Feedback on appraisal is generally unpleasant for both supervisor and subordinate.
i) Unwillingness on the part of supervisors to tell employees plainly how to improve
their performance.

HOW APPRAISALS MAY BE MADE SUCCESSFUL?

The rater must be thoroughly well-versed in the philosophy and nature of the rating system.
Factors and factor scales must be thoroughly defined, analysed, and discussed.

The success of an appraisal programme depends upon.

 The existence of an atmosphere of confidence and trust so that both supervisor and
employee may discuss matters frankly and offer suggestions which may be beneficial
for the organization and for an improvement of the employee.
 The Supervisor must very thoroughly evaluate the evaluate the employee's
performance so that he is capable of meeting challenges about his ratings of his
subordinate.
 The results of performance rather than personality traits should be giving due weight.
Suggestions for improvement should be directed towards the objective facts of the job
(such as work schedules, output, reports completed, sales made, losses incurred,
profits earned, accomplishments, etc.,). Plans for the future must be developed jointly
after consolation with subordinates. The individual as a person should never be
criticized.
 The supervisor should try to analyse the strengths and weaknesses of an employee and
advise him on correcting the weakness.
 The Appraisal programme should be less time-consuming and less costly. At the same
time, it should bring the maximum benefit.
Which particular technique is to be adopted for appraisal should be governed by such
factors as the size, financial resources, philosophy and objectives of an organization.
LIMITATIONS OF PERFORMANCE APPRAISAL.

 Less reliability and validity of the performance appraisal techniques.

 Negative rating affects interpersonal relations and industrial relations system.
 Influence of external environmental factors and uncontrollable internal factors.
 Feedback and post appraisal interview may have a setback on production.
 Management emphasizes on punishment rather than development of an employee
performance appraisal.
 Some ratings particularly about the potential appraisal are purely based on guess
wood the other problems of performance appraisal reported by various studies are.
 Relationship between appraisal rates and performance after promotions was not
significant.
 Some superiors completed appraisal reports within a few minutes.
 Absence of inter-rater reliability.
 The situation was unpleasant in the feedback interview.
 Superiors lack that tact of offering suggestions constructively to subordinates.
 Supervisors were often confused due to too many objectives of performance appraisal.
 However, some of these problems of performance appraisal can be averted by
appraisal performance through computers.
 Failure of the superiors in conducting performance appraisal and post-performance
appraisal interviews.
 Most part of the appraisal is based on subjectivity.

1.3 Explanation for related concepts of selected research

PERFORMANCE MANAGEMENT SYSTEM IN ROYAL DURGA LOGISTICS

1. E-MAP stands for Electronic-Moving Ahead through Performance Management

System which is followed in Royal Durga Logistics.
2. This system was introduced in the year 2002.
3. E-MAP aims at creating an alignment of individual goals with those of the company
and enables to effectively manage performance.
 4. This system covers Frontline Executives of Royal Durga Logistics. Make
developmental plans Monitor goal progress Undertake development Administration
decisions.

MAP FOLLOWS AN APRIL TO MARCH CYCLE AND CONSISTS OF THREE KEY

PHASES:

1. Performance and Development Planning.

2. Mid-Year Review.
3. Final Review.

1. PERFORMANCE AND DEVELOPMENT PLANNING

Performance appraisal is a fundamental requirement for improving the productivity of an

organization because it is through an appraisal that each individual's productivity is
evaluated. It serves as the basis for counselling and developing an individual to maintain or
increase productivity. This segment of the MAP is initiated in the month of March upon the
finalization of the outline financial plan for the company. Following figure shows the
Workflow of the Performance and Development Planning Phase:

Unit HR maps appraisee to suitable KRA

Appraisee makes plan for the year

Submission by the appraisee

Appraiser sees plan and accepts or appraiser discuss plan with the appraisee

Appraisee accepts and submits the plan

Reviewer approves the plan

Plans submitted

Creating the performance and development plans

 Figure 1.2: Workflow of Performance and Development Planning Phase

2. MID YEAR REVIEW

Mid-Year Review is excellent opinion session which takes place involving the appraisee and
appraiser only and takes position through the month of October for the half year wrecked
September. It is a process for reviewing and tracking achievement thus reducing scope for the
time ended supervisors. The following figure shows the Workflow of the midyear review
phase:

Appraisee does self-appraisal and identifies competencies for development

Submission by the appraisee

Appraiser sees plan and gives his comments/feedback

Midyear review gets completed

Figure 1.3: Workflow of Midyear Review Phase

3. FINAL YEAR REVIEW

The final year review phase will commence with the assessment in which appraisee’s gives
the evaluation of board attainment on each KRA defined in the act plan. The appraiser will
appraise the outcomes of self-appraisal and gives his own estimation of realization of the
targets in the act plan. For each KRA's, in addition, he will also give his assessments on the
behavioural traits defined in system. After appraisal by the appraiser, plan will come to
appraisee for his information and assessments done for KRAs. The figure shows the
Workflow of the Final year review phase:
 Appraisee does self assessement of KRA's and gives achivement

Appraisee submits the self assessement

Appraiser gives his assessement of KRA's and rates the appraisee on behavioural traits

Plan goes back to appraisee for acceptance/rejection of appraiser's review

Appraisee accepts or requests for discussion with appraiser

After discussion, appraiser and appraisee submits the final review

Fial review goes to his assessement on KRA's and behavioural traits

Reviewer submits the documents

Final review completes and final dcore gets calculated in the system

Figure 1.3: Workflow of Final Review Phase

Organisation Profile
2.1 Introduction to the Organization
Royal Durga logistics Private limited act as an integrator of travel industry in India by
providing one-stop/end-to-end solutions for your every travel & comfort need. It is one of the
pioneer players along Indore route who have served more than million passengers since
inception. Regulated and sophisticated services, end-to-end route connectivity along with
thrust for innovation in customer/passenger comfort and cost has paved way for becoming
"Numero Uno" across passenger community.

Royal Durga Logistics Private Limited is an unlisted private company incorporated on 11

December, 2020. It is classified as a private limited company and is located in Bangalore,
Karnataka. Its authorized share capital is INR 3.00cr and the total paid-up capital is INR
2.00cr.

The Corporate Identification Number (CIN) of Royal Durga Logistics Private Limited is
U63030KA2020PTC142147. The registered office of Royal Durga Logistics Private Limited
is at #13/5 Pampa MahaKavi Road Shankar Puram Basavanagudi, Bangalore, Karnataka.
Review of Literature and Research Design

3.1 Review of Literature and Gaps

1. Ellen V Rubin and Amani Edwards (2018) analysed that efficiency of performance
appraisal programs and connection among the appraisal arrangement and appraisal
prejudice complaint. For fulfilment of any performance appraisal process worker
perceptions of the fairness of critiques of performances is fundamental and from
performance appraisal and suitable coaching and voice possibilities helps in growing
of appraisal discrimination complaints. So, for better efficiency appraisal process, the
focus will have to be on making improvements to the interpersonal verbal exchange
as an alternative than redesigning the appraisal systems.
2. James R Harrington (2015) identified that human useful resource administration
establishes both an effective and a fair performance appraisal process and it
additionally deals with quite a lot of organizational and psychological reasons which
have an effect on 24 employee's notion of performance appraisal equity, peculiarly in
public companies. The study additionally focuses on regards to the expectations
between a worker and that of a service provider and what each give and expects in
return from the other.
3. Nathan B.R, Mohrman, M & Milliman (1991) studied that there is a considerable
agreement that organizations can advantage from using performance appraisal
programs. It states that both supervisors and employees have bad and optimistic
reactions to the method, so without figuring out individual employees' reactions to
performance appraisal method, it's much less seemingly for performance appraisal to
be used for its original ambitions.
4. Michal Biron, Elaine Ferndale & Jape Paawwe (2011) analysed that the success of
the performance appraisal method may rely on learn how to control the workers’
perceptions of its fairness and no longer the fairness, so the function of performance
value determinations acts as a motivational software for performance appraisal and it
describes that efficiency of perceived fairness of performance appraisal programs.
5. Catherine Truss & Lynda Grattan (2006) studied the relationship between
interdependence, pain with that of conducting performance appraisal, the study also
offers with implications of performance appraisal and future areas of research on
performance and cultural points.
6. M. Z Iqbal, S Akbar & P. Budhawar (2015) analysed that performance appraisal
techniques and their packages act as an administration manage tools for attaining or
for implementation of organizational targets and organizational efficiency.
Performance appraisal is worthwhile for making improvements to worker
performances and even reaching organizational pursuits.
7. Kanfer R., Sawyer & J Early (2014) studied in regards to the more than a few goal
settings in the performance appraisal interviews. In this study, quite a lot of
information was accrued through video - recording type of interviews centred on the
efficiency value determinations from public sector businesses. This article usually
makes a specialty of the function of writing and choosing the fashioned targets for the
progress of future.
8. Burke R J., Wetzel, W & Weir (1978) analysed that Human resource management is
the process of evaluating a workers’ job performance and most ordinarily it may be
known as 25 performance appraisals. So, performance appraisal is a very lot worthy
to and even carrying out the more than a few most important targets of the entire firms
and to the procedure has to be designed to move towards a best performance appraisal
process.
9. David. E. Guest (2011) studied that utilization of performance appraisal applications
as an administration control device for actualizing hierarchical objectives is intricate
for the intent of growing performances within the corporations and it explains various
forms of plans and reasons that offers with the performance appraisals.
10. Shaun Michael (2009) analysed that Human resource management and performance
appraisal method are all interrelated and it's the most closely matter and its primary
end result is that how employees react on that performance appraisal process or
approaches.
11. Bard Kuvass (2006) studied performance appraisal satisfaction and worker results,
and various approaches towards substitute relations among performance appraisal
approval and worker results within form of self - reported work act, there used to be a
survey product of quite a lot of workers which resulted in performance appraisal
satisfaction was once immediately involving strong commitment and turnover
intention.
12. Paul. E. Levy, Jane R. Williams (2004) analysed that very most common
management device in the U.S. is the employee efficiency appraisals and so they all
set various questionnaires and collected information from two significant businesses
and determined that efficiency appraisals have a very large position in businesses for
the future growth.
13. Aharon Tziner, Jeanette N Cleveland, Kevin R Murphy Sage (1995) analysed
specialty of the purpose-oriented viewpoint would be utilized in imposing and
evaluating of efficiency appraisal system. So it offers with goals pursued by using
raters and rates and other users of efficiency appraisal systems are taken into
consideration.
14. Cawley, Brian D, Lisa M, Paul E Levy (1998) analysed the relationship between
participation in the efficiency appraisal tactics and various different worker reactions
and this sort of relationship was once explored via meta-evaluation review of
discipline investigations containing various samples.
15. Bruce M Meg leno, Thomas P Cafferty (1984) studied that mannequin of efficiency
appraisal process that mostly specializes in the cognitive tactics which is being
workers 26 through a rater to kind an analysis, the model includes quite a lot of items
on how the rater collects, outlets, encodes and retrieves information from
reminiscence and weights and combines inflammations to type an evaluation and later
transformed to a score scales.
16. Gary. P. Latham, Kennet.N. Wexley (1995) analysed to facilitate performance
appraisal is foremost supervision tool and solitary most efficiency appraisal programs
had been 1. Job Description, 2. Efficiency commentary at a period of targeted time, 3.
Study about appraisal work within, 4. Seal of performance, 5. Choice making.
17. Wanguri. D.M. (1995) curious about problems involving employees related to
efficiency appraisals, and indicates that each the staff and supervisors have a social
and interpersonal issues and because of that they are maintaining an appraisal which
is concerning interplay. So, the appraisal system is beyond these data.
18. David Thompson, Edward Snape, Tom Redman, Coryn Stokes (2013) analysed a
case be trained of supervision to alteration in public sector health centre. It is paying
attention on the accomplishment of a management performance appraisal approach -
employees’ progress overview. Feedback from survey method and in-depth interviews
techniques were been used to investigate managers’ and staffs’ knowledge of and
attitudes to the approach. The outcomes of that appraisers' understanding in terms of
appraisal interview, comfortable of appraisal conversation, and habits of appraiser.
Respondents ‘views on effectiveness necessities, and measure of pleasure with
procedure, and its apparent benefits have been in addition to be offered. As an
importance the procedure has talented its foremost objectives of absorbed managers'
consideration on performance and evolution of their personnel.
19. Muslin Lee, Byoungo Son (2010) studied that whether or not an employee appraisal
evaluation honestly changes employees’ subsequent performance so the influence for
this was once longitudinal analyses to reap contradicting outcome. Extra longitudinal
reports have been done. A suite of knowledge gathered from an electrical and power
company was taken, and observed that, although each and every of the three measures
of appraisal overview content that is the measure to which, for the duration of the
appraisal assessment, (1) staff have possibility to take part in discussion, (2) ambitions
are certainly set and (3) profession problems was once significantly regarding the
staff’ reactions to the overview, none of them had a positive impact on the next job
performance. 27
20. T. T. Selvarajan, Peggy A. Cloninger (2011) analysed that employee’s reaction with
association linking performance appraisal traits and apparent responses of employees
to appraisal characteristics and appraisal outcomes. As result hypothesized that multi-
supply appraisals, value determinations used for administrative and developmental
value determinations and value determinations that have a high degree of suggestions
richness would lead to extra alleged accuracy and perceived equity of appraisals.
21. Martin (1995) In his study book titled performance appraisal this book is
complementary to the Sunday teams video training package on the leadership
performance appraisal in this business skills and it is aimed to help the reader
understand.
22. Biswas (1997) In his case study titles managerial performance appraisal system the
performance appraisal as system and one form another is being used by different
progressive organization for the last few decades, where as many has developed. The
 appraisal system to be made if more objective skills the government officers and most
of the public sector undertakings.
23. Paranjpe (1997) In his case study titled Employees performance appraisal and
methods with transport industry. One of the important management takes is to plan
development of employees improve their performance and in turn increase
organization efficiency.
24. Srinivas (1997) In his article effective evaluation will lead to enhanced performance
found that appraisal is an important gauge of an employee's motivation of an effort
many executive and line managers have a reluctance to take the responsibility of
deciding another person's future and feed uncomfortable with this assignment.
25. Cynthia-D-fisher, Lyle-F-Schoenfeld Jomes-B-shaw-(1997) In his book "Human
resource management "he discusses that appraisal and feedback can occur informally
as when a supervise notices and comments on a good or poor performance incident.
26. Colinedix and chirs Baird (1998) In this book titled Front of his operations
information's has been taken regarding hotels and their environment as well as type of
hospitality industries.
27. Lokapavana (1999) In her book titled a study on performance appraise system has
given result was appraisal is communicated with work this good system for worker
development and every head of the department must conduct counselling with each
employee Soon after appraisal is done and each employees role and responsibility
must be made clear, so that it is possible for easy assignment.
28. Preem Chandha-(2003) In his book "It's About Performing - Not just appraising
"discuss that appraisal will be based and justified essentially on the data documented
at stock taking performance stage.
29. Srinivas R.Kandula-(2003) In his book "Human resource management in practice
(with 300 models, techniques and tools )",he discuss that P.A is the backbone of HRM
practice in any organization there is a widespread realization that P.A practices.
30. Robert-L-mathis, John-H- Jackson-(2004) In his book "Human resource
management (International student edition)", he discusses that performance system
processes used identify, encourage, measure, evaluate improve, and reward employee
performance.
31. Skaski-K-Gupta, Rosy-Joshi (2005) In his book "Human resource management", he
discusses the systematic evaluation if the individual with respect to his or her
performance on the job and his or her potential for development.
 32. Tapomoy Deb-(2006) In his book "Human resource development theory and
practices", he discussed that P.A is a process of systematically evaluating performance
and providing feedback upon which performance adjustments can be made.
33. H. John Bernardin-(2007) In his book "Human resource management "(An
experiential approach) discuss that P.A should first focus on the records of outcomes
that the person actually achieved on the job, a focus on actual performance first.
34. Rv. Badi -S. G. Hundekar-(2007) In his book "International Human Resource
Management", discuss that P.A represents a situation in which decisions are made
about individuals’ collocation of ratings or rankings and associated rewards and
potent ion for misunderstandings and feelings of justice or great. This means that a
very fair clear process should be adopted.
35. Gary Dessler-(2008)
Florida International University
In his book " Framework for human resource management" discuss that an appraisal
process in which the employee who is highest on a Traci begin measured and also the
one who is lowest is identified, alternating between highest and lowest until all
employees to be rated have been addressed.
36. P. Subba Rao-(2008) In his book "personal and human resource management text
and cases", he discusses that performance appraisal a systematic an objective way of
evaluating both work related behaviour and potential of employees.

3.2 Statement of the Problem

This problem is chosen to evaluate the performance of an employee. Performance appraisal is
the stage where organization finds out how proficient it has been at hiring and placing
employees. If any performance problems are identified steps are taken to communicate, the
same is taken to the employees and are provided with a solution. It is compulsory for all the
organizations to have such systems. Royal Durga logistics also possesses such system to
evaluate employee’s performance.

3.3 Need for the study

The study enables to have access on various facts of the business. This helps in understanding
the need for the importance and advantage of performance appraisal system in the business
firms, this study gives the exposure to our minds to the integrated management of Human
Resource in the various operations, techniques and the methodologies adopted by the
business firms.

3.4 Scope of the study

The study was done to understand the performance system at BHEL- EPD. The study mainly
concentrates on how the company helps in improving feedback to employees so that they
come to know where they stand and can also improve their job performance.

3.5 Objectives of the study

The researchers are having an idea about the various aspects of the study based on these
following objectives are framed by the researchers.

 The main objective of the study is two find out the importance of performance
appraisal system introduced in Royal Durga Logistics.
 To find out the degree of the satisfaction of employee with the current appraisal
system.
 To now the current performance appraisal system.
 To examine which performance appraisal methods are adapted in Royal Durga
Logistics.
 To find out the level and importance of performance appraisal in Royal Durga
Logistics.
 To find out effectiveness of the performance appraisal system in Royal Durga
Logistics.

3.6 Hypothesis

Hypothesis is an assumption about relations between variable, it is a tentative explanation of

the research problem or a guess about the research outcome. Before starting the research, the
researcher has rather general, diffused, even confused notion of the problem.
It may take long time for the researcher to say what questions he had been seeking answers to
hence an adequate statement about the research problem is very important.

1.According to Theodorson

"A Hypothesis is a tentative statement asserting a relationship between certain facts"

2. Kertinger described it as

" A conjunctional statement of the relationship between two or more variable".

Types of Hypothesis

 Working hypothesis
 Research hypothesis
 Null hypothesis
 Statistical hypothesis
 Alternative hypothesis
 Scientific hypothesis

Testing of Hypothesis

 H0: There is no relationship between accuracy of performance evaluation and

performance appraisal in achieving individual and organization goals.
 Ha: There is a relationship between accuracy of performance evaluation and
performance appraisal in achieving individual and organization goals.

3.7 Research design

The term design means drawing an outline or planning or arranges details. It is a process of
making decision before the situation arise in which they have to be carried out.

Research design is planning a strategy of conducting research William Zikmund has

described research design as "a master plan specifying the method and procedures for
collecting and analysing the needed information".

 Types of Research design

1. Descriptive design
2. Exploratory design
3. Experimental design
4. Diagnostic design
 Research design selected for the Topic the Purpose of the study on performance
appraisal and its impact on Employees in manufacturing industries. The researcher
already found out much of the information that on exploratory study provides. The
researcher closed descriptive research design for the present research study.
 Universe of the study Universe of the study includes all the employees who are
working in Royal Durga Logistics.
 Sample Size Researcher has taken maximum of 100 employees for the study who are
working in Royal Durga Logistics.
3.8 Sampling framework

When a small group is taken as the representative of the whole the study is called Sampling
Study. The whole group from which the sample has been drawn is technically known as
universe or population and group actually selected for study is known as sample.

There are basically two types sampling they are

1. Probability Sampling
Probability sampling today remains the primary method for selecting large.
Representative sample for social and business researcher.
The Six forms of probability: -
 Simple Random Sampling
 Stratified Random Sampling
 Systematic Sampling
 Cluster Sampling
 Multi Stage Sampling
 Multi-Phase Sampling

2. Non-Probability Sampling
Non probability sampling makes no claim for representatives, as every unit does not
get the chance of being selected it the research who decided which sample units
should be chosen.
 Quota Sampling
 Purposive Sampling
 Convenience Sampling
 Snowball Sampling

Sampling method for the study Researcher selected "Simple random Sampling" for this
dissertation because when method of selection assures each individual or element in universe
an equal chance is being chosen.

3.9 Demographic outline of respondents

3.10 Tools for data collection

Tools are instruments used for collecting data. Data is basic skeleton of research and if
adequate and reliable data in not available. It is difficult to discover worth, while findings the
sources of data.

 Types of tools
 Interview
 Questionnaire
 Observation
 Case study

 Toll for the data

The researcher selected "Questionnaire" as a tool for data collection because it is
easily accessible to the researcher to collect the information casually since all the
respondents are literate and can understand the questions and can respond to that.
 Source of data collection
1. Primary Data
The primary source of data is the information collected from the respondents
through questionnaire and interview, schedule
2. Secondary Data

The Secondary sources of data are collected from internet

 Internet
 Books
 Dairies
 Personal Documents
 Biography
 Letters
 Records
 Published documents
 Magazines etc.

This source of the data for the present study the researcher has collated
data/information both from Primary and Secondary Sources.

3.11 Limitations of the study

1. The study pertains only to the employees of Royal Durga Logistics.
2. The total number of respondents were only restricted to 100 employees.
3. The study is limited only to the officials hence broad generalization about the
company may not be possible.
4. The data is collected through questionnaire hence the response from the respondents
may not be correct.
5. An interaction between officials was limited due to the busy schedule.