Effectiveness of Performance Appraisal in IT Companies

Topics: Demographics, Factor analysis, Principal component analysis Pages: 37 (3287 words) Published: January 31, 2015
Xavier institute of management, bhubaneswar
Effectiveness of Performance Appraisal in IT Companies
SRM Project Report

Prepared for
Dr. Prahlad Mishra
Professor, Xavier Institute of Management

Prepared by
Aditya Nair – UH13019
Divya Modi – UH13016
Sneha Gopalan – UH13049
Somrita Sen – UH13050
Tapas Chakrabarti – UH13056
Tarun Kaushal – UH13057
Uday Kumar – UH13058

PGDM HRM I

Acknowledgement
We would like to extend our heartfelt gratitude to Professor P. Mishra for giving us an opportunity to study this topic relevant to the HR managers of today. The guidance provided by Prof. P Mishra and Ms. Sangeeta Agasty at various stages has ensured that the study was systematic and the conclusions were obtained taking into account all the factors. We would also like to thank our respondents for taking time out of their busy schedule to answer such and extensive questionnaire. Last but not the least we would also like to thank everyone whose small contributions have helped this report to its present form.

Informative Abstract
To understand the impact of the present performance appraisal system in IT companies by collecting data and using multivariate techniques for analysis, in order to derive conclusions on the effectiveness of such systems and identifying the prime focus areas for improvement.

Contents
Acknowledgement …………………………………………………………………… 1 Informative Abstract …………………………………………………………………. 2 Contents ……………………………………………………………………………… 3 1. Introduction ……………………………………………………………………….. 4 2. The Data …………………………………………………………………………... 6 3. Univariate Analysis ………………………………………………………………. 7 4. Bivariate Analysis ………………………………………………………………... 14 5. Multivariate Analysis …………………………………………………………….. 18 6. Conclusion ………………………………………………………………………... 32

1. Introduction
A performance appraisal (PA), performance review, performance evaluation, (career) development discussion or employee appraisal is a method by which the job performance of an employee is evaluated. Performance appraisals are a part of career development and consist of regular reviews of employee performance within organizations. A performance appraisal is a systematic and periodic process that assesses an individual employee’s job performance and productivity in relation to certain pre-established criteria and organizational objectives. Other aspects of individual employees are considered as well, such as organizational citizenship behavior, accomplishments, potential for future improvement, strengths and weaknesses, etc. To collect PA data, there are three main methods: objective production, personnel, and judgmental evaluation. Judgmental evaluations are the most commonly used with a large variety of evaluation methods. Historically, PA has been conducted annually (long-cycle appraisals); however, many companies are moving towards shorter cycles (every six months, every quarter), and some have been moving into short-cycle (weekly, bi-weekly) PA . The interview could function as “providing feedback to employees, counseling and developing employees, and conveying and discussing compensation, job status, or disciplinary decisions”. PA is often included in performance management systems. PA helps the subordinate answer two key questions: first, "What are your expectations of me?" second, "How am I doing to meet your expectations?"  Performance management systems are employed “to manage and align" all of an organization's resources in order to achieve highest possible performance. “How performance is managed in an organization determines to a large extent the success or failure of the organization. In ITeS, performance appraisal is a yearly process, which involves inputs from various stakeholders and at various time durations. The process is largely similar across organizations and is held strongly by means of a performance management system that is Information Technology driven. The...
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