“A STUDY ON THE EFFECTIVENESS OF PERFORMANCE APPRAISAL SYSTEM

AT HNP TECHNOLOGIES, CHENNAI.”

By

S. ADAVAN

Roll No.
0702MBA2527
Reg. No.
68107202553

A PROJECT REPORT

Submitted to the

FACULTY OF MANAGEMENT SCIENCES

in partial fulfillment for the award of the degree

of

MASTER OF BUSINESS ADMINISTRATION

CENTRE FOR DISTANCE EDUCATION

ANNA UNIVERSITY CHENNAI
CHENNAI 600 025

JULY, 2009
 BONAFIDE CERTIFICATE

Certified that the Project report titled “A Study On The Effectiveness Of Performance

Appraisal System at HNP Technologies, Chennai.” is the bonafide work of Mr. S. ADAVAN

who carried out the work under my supervision. Certified further that to the best of my

knowledge the work reported herein does not form part of any other project report on dissertation

on the basis of which a degree or award was conferred on an earlier occasion on this or any other

candidate.

Signature of student Signature of Guide

Name: Name:
(in capital letters) (in capital letters)
Roll No. : Designation:
Reg. No. : Address:

Signature of Project-in-charge

Name :
(in capital letters)
Designation :
 Certificate of Viva-voce-Examination

This is to certify that Thiru/Ms./Tmt……………………………………

(Roll No………………………; Register No. ………………………) has been subjected

to Viva-voce-Examination on ………………..(Date) at .. ………….. (Time) at the Study

centre …………………………….......................................

…………………………………………………………………………………..

…………..(Name and Address of the Study centre).

Internal Examiner External Examiner

Name: Name:
(in capital letters) (in capital letters)
Designation: Designation:
Address: Address:

Coordinator
Study centre
Name:
(in capital letters)
Designation:
Address:

Date :
 DECLARATION

I, MR. S.ADAVAN student of ANNA UNIVERSITY – Centre for Distance Education, would
like to declare that the project entitled “A STUDY ON THE EFFECTIVENESS OF
PERFORMANCE APPRAISAL SYSTEM AT HNP TECHNOLOGIES, CHENNAI”
submitted in partial fulfillment of the awards of the MASTER OF BUSINESS
ADMINISTRATION by the ANNA UNIVERSITY, Chennai, is my original work and not formed
the basis for the award of any other degree.

REGISTER NO: 0702MBA2527

PLACE: CHENNAI

DATE:
(S.ADAVAN)
 ABSTRACT

It is a well established fact the people differ in their abilities and aptitudes. These differences are
natural to a great extent and cannot be eliminated completely by giving them education and
training .There will always be a some difference in quality and quantity of work done by
different employees .Therefore it is necessary for the management to know these differences so
that it may develop certain programs in the organization for those employees who posses better
potentials so that they may be developed to accept the challenges of higher jobs or wrong
placement of employees may be rectified .The individual employee may also like to know his
capability in terms of his performance on his capability in terms of his performance on the job
qualitatively and quantitatively in comparison to his fellow employees so that he improve upon
it.

No firm has a choice as to whether or not it should appraise its personnel and their performance
but the choice lies between the systematic and the unsystematic or casual appraisal. The system
of appraising the man is not new but the systematic approach of evaluating the man is by any
means a new development .The technique of appraising the man by supervisors or others is
widely known as “Performance Appraisal” .It is also sometimes termed as Personnel
Performance Evaluation, Merit Rating.

Thus main objective of the project is to study the Performance Appraisal process being practiced
in HNP Technologies and evaluate its effectiveness .This project aimed at finding out
effectiveness in terms of familiarity, and satisfaction level of performance appraisal among the
employees HNP Technologies, Chennai. The project also focuses on finding out how
performance appraisal is matching in meeting the company’s goals and objectives.

The research methodology used in the project is the descriptive approach and it is done among
200 employees of HNP Technologies.
 ACKNOWLEDGEMENT

First of all I would like to thank the God almighty for blessing me to do this course
and helping me in completing the project successfully. I would also thank my parents from the core
of my heart for standing behind me and encouraging me to do the project.

My sincere thanks to MR. D. SUGUMARAN for providing me with the necessary

facilities for completion of the project and also for his ideas and encouragement for the successful
completion of the project.

I also express my deep sense of gratitude to MR. SATHISH KUMAR, Human

Resource Manager – HNP TECHNOLOGIES, CHENNAI, for allowing me to do the project in
the organization and also for his guidance, encouragement and assistance throughout my project.

Last but not the least my friendly thanks to all my friends who helped me in
completing my project work.

S. ADAVAN
S.N0 CHAPTER NAME PAGE NO

1 INTRODUCTION 1
1.1 STATEMENT OF PROBLEM 3
1.2 OBJECTIVES OF THE STUDY 5
1.3 COMPANY PROFILE 6

2 REVIEW OF LITERATURE 12

2.1 PURPOSE OF APPRAISAL 13

2.2 ESSENTIALS OF GOOD APPRAISAL SYSTEM 13
2.3 APPROACHES TO PERFORMANCE APPRAISAL 15
2.4 TOOLS/METHODS FOR APPRAISING PERFORMANCE 17
2.5 LIMITATIONS OF THE STUDY 22

3 RESEARCH METHODOLOGY 24

4 DATA ANALYSIS & INTERPRETATION 26

5 FINDINGS AND SUGGESTIONS 53

6 BIBLIOGRAPHY 57
S.NO LIST OF TABLE PAGE NO

1 Classification of gender 26

2 Classification of age 27

3 Table showing experience 28

Table showing whether performance appraisal is conducted every year
4 29
in the company
Table showing whether job increments and promotions are strictly
5 30
based on performance appraisal
Table showing whether performance appraisal objectives are clearly
6 31
informed
7 Table showing whether performance appraisal is inherently 32

8 Table showing purpose of performance appraisal 33

9 Ranking of methods employed in performance appraisal 34

1
Table showing what are performance appraisal forms/procedures 35
0

11 Table showing whether feedback on performance appraisal is collected 36

12 Table showing opinion on present performance appraisal system 37

Table showing opinion on the following factors covered in performance
13 38
appraisal
14 Table showing improvements to be made in performance appraisal 39
Table showing trough which source the respondent prefers performance
15 40
appraisal
Table showing whether present performance appraisal system is to be
16 41
improved
Table showing methods that can be suggested for performance
17 42
appraisal
 S.NO LIST OF GRAPH PAGE NO

3.1 Classification of gender 26

3.2 Classification of age 27

3.3 Table showing experience 28

Table showing whether performance appraisal is conducted every
3.4 29
year in the company
Table showing whether job increments and promotions are strictly
3.5 30
based on performance appraisal
Table showing whether performance appraisal objectives are clearly
3.6 31
informed
3.7 Table showing whether performance appraisal is inherently unfair 32

3.8 Table showing purpose of performance appraisal 33

3.1
Table showing what are performance appraisal forms/procedures 35
0
Table showing whether feedback on performance appraisal is
3.11 36
collected
3.12 Table showing opinion on present performance appraisal system 37
Table showing trough which source the respondent prefers
3.15 40
performance appraisal
Table showing whether present performance appraisal system is to
3.16 41
be improved
Table showing methods that can be suggested for performance
3.17 42
appraisal