Performance Management System

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Submitted to: Dr. Pampari Venkataswamy

Submitted By: TARUNA CHAWLA Enrol.No.-08BSHYD0892 Section-B


1. Executive Summary ------------------------------------------------------------------------- 3 2. Scope of the Project------------------------------------------------------------------------- 4

3. Introduction----------------------------------------------------------------------------------- 5 4. Process of performance appraisal---------------------------------------------------------- 6 5. Purpose of performance appraisal--------------------------------------------------------- 7 6. When and Who to conduct appraisals------------------------------------------------------ 8 7. What is to be evaluated----------------------------------------------------------------------- 8 8. Elements of an effective appraisal system--- ---------------------------------------------- 9 9. Corporate outlook-------------------------------------------------------------------------------10 10.Conclusion------------------------------------------------------------------------------------- 21 11.References-------------------------------------------------------------------------------------- 22


This project report is a review based on theory as well as the industry outlook of performance appraisal system of the organization. The report starts with the Introduction and Literature Review of performance appraisal system that outlines its history, definitions, purposes, types, process, methods, appraiser, parameters of evaluation and the essentials of an effective appraisal system. Further the performance appraisal system of three companies – Bharti Airtel, Kroll Inc and Cocoa Research Institute of Savana, collected through various primary and secondary sources have been included in the report which gives a fair idea of the kind of appraisal system being followed across various corporates. Last, the conclusions and references has been mentioned.


The project gives an outline of what performance appraisal is and how it should be conducted, defining the process of appraisal, the person who should be involved in the process and wat should be the criteria involved in appraisal. The data has been collected fro various websites which have been mentioned in the references. The methods of appraisal have not been included in the report confining to the word limit and the practical aspect of the topic has been taken care by giving information about three corporates that are Bharti Airtel, Kroll Inc and CRIS.



I. Background:
1. The concept of Performance Appraisal dates back to the First World War and was then called “Merit Rating Programme”. Over a period of time, this concept has been through an ocean of change. The areas of evaluation have also changed. 2. According to Carl Heyel, author/editor on management, philosopher and teacher, “performance appraisal is the process of evaluating the performance and qualifications of the employees in terms of job requirements, for administrative purposes such as placement, selection and promotion, to provide financial rewards and other actions which require differential treatment among the members of a group as distinguished from actions affecting all members equally”.

II.Change: 1. A few decades ago, the employee used to be appraised by his department head. The department head used to communicate his feedback and comments only to the immediate superior of the employee. Thus the feedback was kept confidential in nature. As time passed by, the immediate superior started appraising his subordinate’s performance and sending his confidential report to the department head. These were the periods when the employee was not included in his appraisal process. The decisions used to be taken by his superiors relating to his pay hike, promotion etc....
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