Chapter VI
Testing of Hypothesis
Hypotheses :
Following null hypotheses are framed and tested. The null hypotheses were framed
with reference to data collected from HR Managers.
Null Hypothesis with reference to Performance Appraisal System
¾ Performance Appraisal system provides competitive strength to an
organization.
¾ Performance Appraisal system facilitates positive motivation to the
employees
Testing of Hypotheses
Null Hypotheses with reference to Performance Appraisal System
Hypothesis 1 -
H0 : µ = 0, Performance Appraisal system provides competitive strength to an
organization.
H1 :µ ≠ 0 , Performance Appraisal system does not provides competitive
strength to an organization.
Hypothesis 2 -
H0 : µ = 0, Performance Appraisal system facilitates positive motivation to the
employees.
H1 :µ ≠ 0 , Performance Appraisal system facilitates positive motivation to the
employees.
We would like to test above hypothesis at Level of Significance = 0.05
The statistical table represented below is used for decision making.
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Q.No. Description n x p Z-value Remark
14 Performance appraisal very 1439 1235 0.8582 27.1787 P > 0.50
important to improve one’s
performance
15 Performance appraisal system 1439 1005 0.6984 15.0524 P > 0.50
provides adequate feedback
16 Performance appraisal is a way 1438 1087 0.7559 19.4088 P > 0.50
to discuss one’s progress
openly, honestly, and motivate
employees to perform better
17 Performance appraisal helps to 1439 1162 0.8075 23.3299 P > 0.50
integrate individual and
organizational goals.
18 Personal relationship likes, 1439 1089 0.7568 19.4811 P > 0.50
dislikes etc. influence
performance appraisal ratings
19 Performance appraisal helps to 1439 1121 0.7790 21.1683 P > 0.50
win co-operation and team
work
20 Evaluation of team 1439 1144 0.7950 22.3809 P > 0.50
performance should be
included in performance
appraisal
21 Peers, customers, subordinates, 1439 1164 0.8089 23.4353 P > 0.50
other department
representatives should be
included in Performance
appraisal process.
22 Performance appraisal system 1439 1050 0.7297 17.4249 P > 0.50
helps to identify the strengths
and weakness of the employee.
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23 Performance rating is helpful 1439 1095 0.7609 19.7975 P > 0.50
for the management to provide
employee counselling
24 Appraisal System keeps on the 1438 1261 0.8769 28.5858 P > 0.50
major achievement and failure
or success if the work
25 Transfer, demotion, 1437 1104 0.7683 20.3388 P > 0.50
suspension and dismissal is
based on Performance
appraisal.
26 Management fixes salary 1439 1054 0.7325 17.6358 P > 0.50
through the performance
rating.
27 The Performance appraisal is 1438 1016 0.7065 15.6642 P > 0.50
helpful in reducing grievance
among the employees.
28 Performance appraisal 1438 1209 0.8408 25.8432 P > 0.50
increases employee
motivation.
29 The follow up procedure after 1438 1168 0.8122 23.6808 P > 0.50
Performance appraisal is
satisfactory
30 Do you wish to have changes 1436 119 0.0829 - P < 0.50
in current appraisal System? 31.6140
P-value < 0.05 rejects H0
P-value > 0.05 accepts H0
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Inference -
The above tables show that, both the hypotheses has to be accepted as we get
p-value > 0.05 for all sub-hypothesises on the basis of questions listed above. The
only exception is the question number 30 for which we get p-value < 0.50.
Hence,
We acceptHypothesis 1 i.e. Performance Appraisal system provides
competitive strength to an organization.
We also accept Hypothesis 2 i.e. Performance Appraisal system facilitates
positive motivation to the employees.
The rejection is for question number 20 which implies that, HR managers do
not wish to changes in current appraisal System.
It is concluded that Performance Appraisal is the most significant and
indispensable tool for an Organisation and Top Management’s blessings, involvement
and commitment make the Performance Appraisal System more meaningful,
productive, fruitful and effective in achieving Organisational Goals along with
Employee Development and also enables HR Department to create performance
driven culture in the Organisation.
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