ACKNOWLEDGEMENT

It is indeed a great pleasure and privilege for me to present a report on EFFECT OF

PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION in MB HOMES
in year 2015-2018.
I take immense pleasure in thanking to \for giving me an opportunity to do this project and
for her valuable suggestion and guidance. I also extend my thanks to all those who directly or
indirectly involved in my project completion.
I would like to thank all the employees of MB HOMES in my Training area and all those
people who directly or indirectly helped in the successful completion of the project Lastly, I
would heartily thank all the respondents of the survey without whose support and valuable
inputs this project would not have been completed.

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 PREFACE

A professional course like bachelor in business administration program demand both

conceptual and practical theory of knowledge. Hence there is a provision of project by this
the student learns through his or her own experience, real situation of corporate world, and its
protocol and to put his/her theoretical knowledge into practice. This experience is very
valuable for the student and plays a leading as well as virtual role in the professional life of
the management student

The report on M.B HOMES THE REAL ESTATE COMPANY was complete
experience in itself which has provide me with the understanding and which has become an
inspirable part of my knowledge of management. An opening experience to the concept that
are applied for managing resources in the organization.

Implementing and leaning the concept of management in a work place provides an

opportunity to learn practically. I got a chance to apply the theory and acquaint myself with
the functioning of financial methodology. Real learning places is worth only when it gives
sweet fruits in future. I enjoyed the interesting experience and every part of it.

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 STUDENT DECLARATION

I hereby declare that the project title EFFECT OF PERFORMANCE

APPRASIAL OVER EMPLOYEES MOTIVATION submitted for the partial
fulfillment of the requirement for the award of the degree of BACHELOR OF BUSINESS
ADMINISTRATION is my unique work and the project has not shaped the premise for the
award previously of any degree, diploma, scholarship, fellowship, or other comparative title.

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 4

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 5

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 TABLE OF CONTENTS

PARTICULAR P.NO

CHAPTER-1 8-10
1.1 INTRODUCTION
1.2 REVIEW OF LITRATURE

CHAPTER-2 11-17
2.1OBJECTIVE OF STUDY
2.2RESEARCH METHODLOGY
 SAMPLING AND POPULATION
 METHODS OF DATA COLLECTION
 SCOPE AND LIMITATION OF THE STUDY

CHAPTER-3 18-21
3.1 INDUSTRY AND COMPANY PROFIL

CHAPTER -4 22-27
4.1 INTRODUCTION OF THE TOPIC

CHAPTER-5 28-38
5.1 DATA ANALYSIS AND INTERPRETATION

CHAPTER-6 39-45
6.1 SUMMARY
6.2 FINDING

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

6.3 SUGGESTION AND RECOMMENDATION
CONCLUSION
BIBLOGRAPHY
ANNEXURE

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 CHAPTER :1

1.1 Introduction

The HR practice of Performance appraisal positively influences employee behavior and

performance. The purpose of the present study is to examine the relationship between
performance appraisal satisfaction and employee outcomes, in the form of employees’
motivation, work performance and employees’ commitment. Base on that purpose M.B
HOMES Head office was selected to conduct this research. The company has utilized a
performance appraisal system which is a combination of technical and behavioral
measures that are directly linked with the key performance indicator of the company itself
to reach the highest level of quality and productivity through its employees. The
prevailing performance appraisal system aims at monitoring, recording, and measuring the
variable aspects of the employee’s work flow in the company. This appraisal system is
essential for both the company and the employees as it is assessing the company’s
performance through its employees’ performance. The company aims to sustain the
employee’s performance throughout their work by providing the employees with a
positive environment that motivates them in order to perform well Employees do perform
better if they know that their actions are monitored and their performance is evaluated, so
they are receiving recognition based on their efforts and they are also willing to accept the
negative feedback rather than not receiving feedback at all. So, the output of the appraisal
system is used to determine the abilities of each employee to detect the deficiencies in
their work if any, in order to provide them guidance in improving their performances and
at the same time, it is also used to reward the employees based on their performances.
This research investigates into the advantages and disadvantages associated with the effect
of performance appraisal over employees motivation and employees’ satisfaction in M.B

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

HOMES THE REAL ESTATE COMPANY.

1.2 Review of literature

Study by Hewllet Associates (1994) : The impact of performance

management on organizational success substantiates that performance
management system can have a significant impact on financial
performance and productivity . Companies with performace programs have
higher profits , better cash flows, stronger stock market performance and a
greater stock value than companies without performance management.

William (1997) : Identifies globalization , increased competation and the

increasingly individualistic rather than collective employees relationship as
some of the major drives contributing to the increased visibility of
performance management system . Faced with fast moving and competitive
environments, companies are constantly searching for unique ways in which
to differentitae themselves from their competation and are increasingly
looking to their “ Human resource” to provide this differentiation.

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

Robert and Angelo (2001): The success or failure of public sector
business organization depends on the ability to attracts develop, retain,
empower & reward a diverse of appropriate skilled people and is the key to
improving organizational performance . The expalanation therefore is that
human resource managers in the public sector business concerns should
embark on periodic performance management reviews of their employees in
the orders to re-position their business organizations though owned by
goverement for better performance and improved competitiveness.

Performance appraisal has a brief history starting from earth 20th century where the need
of performance appraisal was felt and some measures developed. Performance appraisal is
the process of identifying, observing, measuring and developing human resources in
organizations. Performance appraisal is the measurement of work and its results by using
the scale and index that we can measure the desired quantity and quality with precision
and free of personal judgments and vague criteria of evaluation. Furthermore, PA served
as a tool for managing the effectiveness and efficiency of employees and it is a vital
component of a broader set of human resource practices. It is the mechanism for
evaluating the extent to which each employee’s day to day performance is linked to the
goals established by the organizatio

10

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

CHAPTER 2

2.1: OBJECTIVE OF THE STUDY

To study whether employee’s satisfaction serve to achieve

performance improvement, achievement of business results.

To study importance of improvement in performance and efficiency of employees.

Employees attitude towards the present appraisal system.

To identify the effectiveness of performance appraisal system for employees.

To find the outcomes of Performance Appraisal satisfaction.

2.2: RESEARCH METHODOLOGY

11

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 Research in simple terms, refers to a search for knowledge. It is also known as the art of
scientific investigation. Thus, research is an original addition to the available
knowledge, which contributes to its further advancement. It is an attempt to pursue truth
through the methods of study, observation, comparison and experiment.

 Research design:

A research design helps to decide upon issues like what, when, where, how much, by
what means, etc., with regard to an enquiry or a research study. The research design is
the conceptual structures within which research is conducted.

Exploratory
Research

Research
Design

Descriptive Casual
Research Research

(Figure
(No-2.2, Research design)

1. Exploratory Research Design:

Exploratory research focuses on the discovery of new ideas and is generally

based on secondary data.

12

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 2. Descriptive Research:

Descriptive research is undertaken when the researcher wants to know the

characteristics of certain groups.

3. Casual or Experimental Research:

An experimental research is undertaken to identify causes and effect

relationship between two variables.

 In this project Descriptive Research design method is used.

 Scaling:

Scaling is applied to the attempts to measure the attitude objectively. Attitude is a

resultant of number of external and internal factors. Depending upon the attitude to be
measured, appropriate scales are designed. Scaling is a technique used for measuring
qualitative responses of respondents such as those related to their feelings,
perception,likes, dislikes, interests and preferences.

 In this project, all the questions have been designed using Nominal scale

2.2.1: Sampling and population

 Sampling

Sample basically means a subgroup of element of population selected for participation in

study and the number of elements to be included in the study is known as sample size.

13

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

Execution of the sampling process requires a detailed specification of how the sampling
designs decisions with respect to the population, sampling frame, sampling unit, sampling
technique, and sample size is to be implemented.
Sample method is broadly classified as:
 Non Probability Sampling-
A sampling technique that do not use chance selection
procedures and rather they rely on the personal judgment of the researcher.
Non Probability sampling technique is further classified as:
a) Convenience Sampling
b) Judgmental Sampling
c) Quota Sampling
d) Snowball Sampling

 Probability Sampling–
A sampling procedure in which each element of population
has a fixed probabilistic chance of being selected for the sample. It is further
classified as:
a) Simple Random Sampling
b) Systematic Sampling
c) Stratified Sampling
d) Cluster Sampling

 In this project, Convenience sampling i.e. Non Probability Sampling Technique

isused. Convenience sampling attempts to obtain a sample of convenient elements.

2.2.2 Method of data collection-

14

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 Data collected from two methods they are explain below-

A) Primary Data:
Information which is gathered directly from the original source. Primary data
collection is necessary when a researcher cannot find the data needed in
secondary sources Following are some type of colleting primary data-
Survey,
Observation,
Interview,
Questionnaire

In this project I have taken primary data from survey, observation, and
questionnaires.

B) Secondary Data:

Data which is are taken published and unpublished copies it is known as

secondary data. Following are some types of secondary data.

Magazine,
Printed articles,
E-mails.
books

Data collection means gathering information for related survey. There are
many methods available to gather information. The most important issue
related to data collection is selecting the most appropriate information. The
most important issue related to data collection is selecting the most
appropriate information.
Survey,
Panel (in-depth technique)
Questioner.

15

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 Questionary
Survey

Observation

RESEARCH
DATA

2.2.3 SCOPE AND LIMITATION OF THE STUDY

 SCOPE OF THE STUDY

The criterion followed for measuring these schemes are performances,

creativity/ innovation, potential etc. to reward employees.
This study will give knowledge about reward and recognition schemes
currently running in the organizations.

16

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 Study will help company to know about which reward and recognition
schemes appreciated more.
The study will help to recognized eligible employees and reward them timely.

This study will provide effective schemes to motivate more and more employees.

 LIMITATIONS

While doing this project, a few problems were faced which are mentioned below.

While conducting survey, respondents were very reluctant to hand out correct
information. Also they were not interested to give out information, as it was
company specific and confidential. In many cases, they just refused to spare any
time. In many cases, respondents just filled the questionnaire without giving
proper thoughts to the questions to save their time; therefore, information
provided might be biased.

All expenses of the project are born by me, which become heavy on their pocket.

Since the project duration was only 45 days, time constraint limits the area of
study.

As the information about the work plans of employees was to be collected from
the employees themselves, to use it for making the rewards and milestones,
therefore to get the information from the people on work was another limitation.

The people from whom the information was collected were always busy in

--
17

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 CHAPTER:3

3.1 COMPANY PROFILE

MB Homes is a real estate development company located in Dehradun, Uttarakhand, India.

The genesis of MB Homes is based on the needs of the people for affordable housing and
safety. It not only builds buildings but also build relationships with people to create thriving
communities and living spaces. They foster new ideas in their projects to support people and
undertake tangible initiatives to create spaces for people to lead a better life. They have a
professional and an experienced team to make sure that their projects are completed in a time
bound manner whilst maintaining and thrives to provide the best. He has a wealth of
experience in real estate development which includes the sourcing of projects, negotiations of
transactions, obtaining statutory approvals, the highest quality standards. They are committed
to create a difference in people’s lives with their core values of Excellence, Reliability,
Integrity, Creativity and Sustainability.

MB Homes is headed by Mohit Batola who has been in the real estate business for more than
16 years. He possesses the keenest mind project management and project marketing. The
successful completion of projects while adhering to the highest standards in safety and
quality is inbuilt in the way he conducts his work. He rightfully won favors’ with owner-
occupiers and investors alike, thanks to his skillful procurement of some of finest project sites
and precise execution of residential projects thereafter. Mohit's pragmatic can-do approach,
enthusiasm, energy and flair to use technology have seen him involved in various successful
projects over the last 16 years.

18

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

The project is located at a very accessible site and distances from various important
landmarks are given below.

 4 kms from Government offices like DRDO, OLF and Ordnance Factory

 3.5 kms from Pacific Shopping mall

 5.3 kms from Max hospital

 6 kms from Clock Tower

 5-6 kms from famous schools St. Joseph’s Academy.

The HR practice of Performance appraisal positively influences employee behavior and

performance. The purpose of the present study is to examine the relationship between
performance appraisal satisfaction and employee outcomes, in the form of employees’
motivation, work performance and employees’ commitment. Base on that purpose M.B
HOMES Head office was selected to conduct this research. The company has utilized a
performance appraisal system which is a combination of technical and behavioral measures
that are directly linked with the key performance indicator of the company itself to reach the
highest level of quality and productivity through its employees. The prevailing performance
appraisal system aims at monitoring, recording, and measuring the variable aspects of the
employee’s work flow in the company. This appraisal system is essential for both the
company and the employees as it is assessing the company’s performance through its
employees’ performance. The company aims to sustain the employee’s performance
throughout their work by providing the employees with a positive environment that motivates
them in order to perform well Employees do perform better if they know that their actions are
monitored and their performance is evaluated, so they are receiving recognition based on
their efforts and they are also willing to accept the negative feedback rather than not
receiving feedback at all. So, the output of the appraisal system is used to determine the

19

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

abilities of each employee to detect the deficiencies in their work if any, in order to provide
them guidance in improving their performances and at the same time, it is also used to reward
the employees based on their performances. This research investigates into the advantages
and disadvantages associated with the performance appraisal system and measure their
relation with employees’ motivation and employees’ satisfaction in M.B HOMES THE
REAL ESTATE COMPANY.

Global majors in Indian real estate:-

The real estate sector is one of the most globally recognized sectors. In India, real estate is the
second largest employer after agriculture and is slated to grow at 30 per cent over the next
decade. The real estate sector comprises four sub sectors - housing, retail, hospitality, and
commercial. The growth of this sector is well complemented by the growth of the corporate
environment and the demand for office space as well as urban and semi-urban
accommodations. The construction industry ranks third among the 14 major sectors in terms
of direct, indirect and induced effects in all sectors of the economy.
It is also expected that this sector will incur more non-resident Indian (NRI) investments in
both the short term and the long term. Bangalore is expected to be the most favored property
investment destination for NRIs, followed by Ahmadabad, Pune, Chennai, Goa, Delhi and
Dehradun.
India's rank in the Global House Price Index has jumped 13 spots to reach the ninth position
among 55 international markets, on the back of increasing prices in main stream
residential sector.

Role of Real Estate in Indian Economy

Scenario: Delhi NCR & Mumbai are by far the biggest hospitality markets in India, followed
by Bangalore, Hyderabad & Chennai, besides hotels, the hospitality market comprises
serviced apartments & convention centers.
20

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

Key Drivers: A robust domestic tourism industry, the increasingly global nature of Indian
businesses boosting business travel, tax incentives for hotels & higher FSI, expansion of
physical infrastructure during the 12th Five Year Plan.
Notable trends: Serviced apartments appear particularly attractive within the hospitality
space, government initiatives to promote tourism in Tier 2 & Tier 3 cities is generating
significant demand for hotels in such cities, especially for budget hotels.

MISSION:

To empower every Indian to connect with the world affordability.

Unleiving of make India concept.

Smart city drive.

VISSION:

Trusted service to million happy customers.

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EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 CHAPTER:4

4.1 MEANING AND DEFINITION OF PERFORMANCE APPAISAL

Performance appraisal is a formal system that evaluates the quality of an

employee’s performance. An appraisal should not be viewed as an end in itself,
but rather as and important process within a broader performance management
system that links:
Organizational objectives
Day to day performance
Professional development
Rewards and incentives

In simple terms, appraisal may be understood as the assessment of an

individual’s performance in a systematic way, the performance being measured
against such factors as job knowledge, quality and quantity of output, initiative,
leadership abilities, supervision, dependability, cooperation, judgment,
versatility, health and the like. Assessment should not be confirmed to past
performance alone. Potentials of the employee for future performance must also
be assessed.
 A formal definition of performance appraisal is:

“It is the systematic evaluation of the individual with respect to his or her
performance on the job and his or her potential for development.”
 A more comprehensive definition is:
22

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

“Performance appraisal is a formal, structured system of meaning and
evaluating an employee’s job related behaviors and outcome to discover how
and why the employee is presently performing on the job and he the employee
can perform more effectively in the future so that the employee, organization
and society and all benefit.”

TRADITIONAL PERFORMANCE APPRAISAL

The history of performance appraisal is quite brief. Its roots in the early 20th
century can be traced to Taylor’s pioneering Time and Motion Studies. But this
not very helpful, for the same may be said about almost everything in the field
of modern human resources management.

During the First World War, appraisal concept was adopted by US army which
was in the form of merit rating. It was man-to-man rating system for evolution
of military personnel. From the army this concept entered the business field and
was restricted to hourly-paid workers. During 1920 relational wage structures
for hourly paid workers were adopted in industrial units and each worker were
used to be rated in comparison to other for determining wages rates. This
system was called merit rating. The process was firmly linked to material
outcomes. If an employee’s performance was found to than the supervisor
expected, a pay rise was in order. Little a consideration, if any, was given to the
developmental possibilities of appraisal. If was felt that a cut in pay, or a rise,
should provide the only required impetus for an employee to either improve or
continue to perform well. Sometimes this basic system succeeded in getting the

23

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

results that were intended; but more often than not, it failed. For example, early
motivational researchers were aware that different people with roughly equal
work abilities could be paid the same amount of money and yet have quite
different levels of motivation and performance. These observations were
confirmed in empirical studies. Pay rates were important, yes; but they were not
only element that had an impact on employee performance. It was found that
other issues, such as moral and self-esteem, could also have a major influence.

As a result, the traditional emphasis on reward outcomes was progressively

rejected. In the 1950s in the United State, the potential usefulness of appraisal
as tool for motivation and development was gradually recognized. The general
model of performance appraisal, as it is known today, began from that time .

MODERN APPRAISAL

Performance appraisal may be defined as a structured formal interaction

between a subordinate and supervisor, that usually takes the form of a periodic
interview (annual or semi annual), in which the work performance of the
subordinate is examined and discussed, with a view to identifying weakness
and strengths as well as opportunities for improvement and skills development.
In many organization – but not all - appraisal results are used, either directly or
indirectly, to help determine reward outcome. That is, the appraisal results are
used to identify the better performing employees who should get the majority of
available merit pay increases, bonuses, and promotions. By the same token,
appraisal results are used to identify the poorer performers who may require
some form of counseling, or in the extreme cases, demotion dismissal or
decreases in pay. (Organizations need to be aware of laws in their country that

24

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

might restrict their capacity to dismiss employees or decrease pay.)whether this
is an appropriate use of performance appraisal – the assignment and
justification of rewards and penalties – very uncertain and contentious matter.

Any effective performance management system includes the following

components:

1. Performance Planning: Performance planning is the first crucial

component of any performance management process which forms the
basis of performance appraisals. Performance planning is jointly done by
the appraisee and also the reviewee in the beginning of a performance
session. During this period, the employees decide upon the targets and the
key performance areas which can be performed over a year within the
performance budget., which is finalized after a mutual agreement
between the reporting officer and the employee.
2. Performance Appraisal and Reviewing: The appraisals are normally
performed twice in a year in an organization in the form of mid reviews
and annual reviews which is held in the end of the financial year. In this
process, the appraisee first offers the self filled up ratings in the self
appraisal form and also describes his/her achievements over a period of
time in quantifiable terms. After the self appraisal, the final ratings are
provided by the appraiser for the quantifiable and measurable
achievements of the employee being appraised. The entire process of
review seeks an active participation of both the employee and the
appraiser for analyzing the causes of loopholes in the performance and
how it can be overcome. This has been discussed in the performance
feedback section.
25

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 3. Feedback on the Performance followed by personal counseling and
performance facilitation: Feedback and counseling is given a lot of
importance in the performance management process. This is the stage in
which the employee acquires awareness from the appraiser about the
areas of improvements and also information on whether the employee is
contributing the expected levels of performance or not. The employee
receives an open and a very transparent feedback and along with this the
training and development needs of the employee is also identified. The
appraiser adopts all the possible steps to ensure that the employee meets
the expected outcomes for an organization through effective personal
counseling and guidance, mentoring and representing the employee in
training programmes which develop the competencies and improve the
overall productivity.
4. Rewarding good performance: This is a very vital component as it will
determine the work motivation of an employee. During this stage, an
employee is publicly recognized for good performance and is rewarded.
This stage is very sensitive for an employee as this may have a direct
influence on the self esteem and achievement orientation. Any
contributions duly recognized by an organization helps an employee in
coping up with the failures successfully and satisfies the need for
affection.
5. Performance Improvement Plans: In this stage, fresh set of goals are
established for an employee and new deadline is provided for
accomplishing those objectives. The employee is clearly communicated
about the areas in which the employee is expected to improve and a
stipulated deadline is also assigned within which the employee must show
26

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 this improvement. This plan is jointly developed by the appraisee and the
appraiser and is mutually approved.
6. Potential Appraisal: Potential appraisal forms a basis for both lateral
and vertical movement of employees. By implementing competency
mapping and various assessment techniques, potential appraisal is
performed. Potential appraisal provides crucial inputs for succession
planning and job rotation.

27

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 CHAPTER:5

Data Analysis and interpretation:

After all the above steps are completed now the important step is data
analyzing and interpretation. For this there are various analytical and
statistical tools. Some of these tools are Percentage, Average, etc.

Once the data have been tabulated, interpreted and analyzed, the researcher has to prepare a
report. The report consists of findings of the research studies and recommendations also.
Report writing needs some skills, which can be develop with practice. The researcher should
follow certain principles while writing a report. These principles include objectivity, clarity
of ideas and use of charts and diagrams. A good research report should effectively
communicate its research findings.

QUESTIONAAIRE

TABLE NO.5.1.1

ROLE OF EMPLOYEES IN THE ORGANIZATION AS SATISFACTORY:-

Purpose- To know whether employees think they are doing proper work to achieve company
companies goal.

Researcher Respondent

28

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 Yes 85%

No 15%

(Table of ,Satisfaction level)

SOURCE: PRIMARY DATA

Yes 100=85% No 100=15%

15%

85%

(Chart of, Satisfaction level)

Inference:

From above data I interpreted that 85% respondent are saying their role in the organization
satisfactory according to them. Only 15% are not unsatisfied about their role in the
organization to achieve company’s goal.

TABLE NO.5.1.2

EQUAL TREATMENT OF EMPLOYEES BY THE BOSS IN THE

ORGANIZATION:-

Purpose – To know company is using fair policies with everyone or not.

29

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 Respondent Responses

Yes 84%

No 16%

(Table OF ,Equality in organisation)

SOURCE: PRIMARY DATA

(
C 100% 84%
h 80%
a 60% Yes 100=84%
r 40% 16% N0 100=16%
20%
t
0%
Yes 100=84% N0 100=16%
N
o-7.(Cart of,Equality in organisation)

Inference:

From the above data I interpreted that 84% of the employees are happy with their boss. And
16% respondent thinks that boss is unfair with them.

TABLE NO.5.1.3

Does performance appraisal is improving employees motivation and job satisfaction?

30

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

Purpose- To know whether performance appraisal is improving employees motivation and
job satisfaction or not .

Respondent Responses

Yes 87%

No 13%

(Table of, employees motivation and job satisfaction)

SOURCE: PRIMARY DATA

100%

80%

60% Yes 100=87%

No 100=13%
40%

20%

0%
Yes 100=87% No 100=13%

(Chart of, employees motivation and job satisfaction)

Inference:

From the above data I interpreted that 87% of employees out of 100% are
motivated and satisfied with their job and 13% are not feeling motivated and not
satisfied. It means that MB Homes is doing well in motivating employees and
job satisfaction to their employees by providing some monetary and non-
monetary benefit to eligible employees.
31

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

TABLE NO.5.1.4

Are you satisfied with your benefit package?

Purpose– Main purpose of this question to know employees’ opinion about their benefit
package.

Respondent Responses

Yes 81%

No 19%

(Table Benefit package)

SOURCE: PRIMARY DATA

19%
Yes 100=81%
No 100=19%
81%

(Chart
(Chart of, Benefit package)

Inference:

MB Homes provide many benefits package to employees. 81% of workers are seems to be
happy with benefit packages provided by the MB Homes. Only 19% of the workers are
unsatisfied with current benefit package of the company.

TABLE NO.5.1.5

32

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

Which type of rewards offered in your organization?

Purpose- To study which type of rewards company offer to organization.

Respondent Responses

Monetary 50%

Non-monetary 50%

(Rewards offered in MB Homes)

100%

80%

60%

40%

20%

0%
Monetory 100=50% Non-monetory 100=50%
(Chart of Rewards offered in MB Homes

Inference:

MB Homes uses both the type of rewards to reward their employees. Monetary and non-
monetary both.

33

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 .

TABLE NO.5.1.6

Do employees want any new incentive or bounce schemes?

Purpose-To knows desire of employees.

Respondent Responses

Yes 94%

No 6%

(Table of New incentive or bounce)

SOURCE: PRIMARY DATA

100%

0%
Yes 100=94% No 100=6%

(Chart of New incentive or bounce)

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EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

Inference: –

Reward and recognition schemes are mainly to motivate employees to work in the
organization. According to total employees in the organization 94% of the employees want
more new incentive or bonus schemes in the MB HOMES. Only 6% out of 100% doesn’t
want new schemes.

TABLE NO.5.1.7

Whether the performance appraisal system is able to improve performance?

Purpose-To know whether performance appraisal system is able to improve the performance
of employees in the organization.

Respondent Responses

Yes 86%

No 14%

(Table of performance appraisal system to improve performance)

100%

50% Yes 100=86%

NO 100=14%
0%
Yes 100=86% NO 100=14%

(Chart of performance appraisal system to improve performance)

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EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 Inference: –

From the above table it can be inferred 86% of the employees performance appraisal system
are able to improve performance and 14% of the performance appraisal system is not able to
improve performance.

TABLE NO.5.1.8

Do you have a pay-for-performance policy that rewards good performing employees?

Purpose- To know policies used by manager for performance.

Respondent Responses

Yes 100%

No 00%

(Table of ,Pay-for-performance policy)

SOURCE: PRIMARY DATA

100%
80%
60% Yes 100 = 100%
40%
No 100 = 000%
20%
0%
Yes 100 = No 100 = 000%
100%

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EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

(Chart of Pay-for-performance policy)

Inference:

MB Homes is using pay-for-performance policy that rewards good performing employees.

100% respondent said that MB Homes uses pay-for-performance policy. Due to these
employees start showing good performance.

TABLE NO.5.1.9
Are you satisfied with the current performance appraisal system?
PARTICULARS NO. OF RESPONDENTS PERCENTAGE
Highly Satisfied 28 56
Satisfied 13 26
Just satisfied 9 18
Dissatisfied 0 0
Total 50 100

SOURCE: PRIMARY DATA

CHART NO.5.1.9:-
60 56

50
40
30 26
18
20
10
0
0
Highly Satisfied Satisfied Just satisfied Dissatisfied

Inference:-

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EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

From the above table it can be inferred that 56% of the employees are highly satisfied with the
current performance appraisal system, 26% are satisfied with the current performance
appraisal system and 80% are just satisfied with the current performance appraisal system.

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EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 CHAPTER:6

6.1: SUMMERY

Human resource is a very critical factor in economics development and a major

source of competitive advantage . The present business scenario has resulted in a sea change
in the Indian market place . In a field of Human resource Performance appraisal is the
systematic periodic and an impartial rating of an employee’s excellence in the matters
pertaining to his present job and his potential for a better job. Management Performance
appraisal appraisal is a method of evaluating the behavior of employees .Performance
appraisal is a effective instrument for helping people growth and develop in organizational
setting .
Here, Performance appraisal is effectively used in the organization to see weather employees
satisfaction serve to achieve performance in the organization and to improve in the
performance and efficiency in the organization . In organizations rewards and recoginization
schemes is used to motivate employees. The motive of employees is to change the attitude of
employees towards the present appraisal system. We find the outcomes of performance
appraisal satisfaction.

6.1: FINDING

This project was undertaken as a one related to HR. Hence it was totally based on
information collected within company. Within the company the main sources were
the information provided by employees of various departments like: legal, HR,
administration, finance, sales, logistics, and market research.
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EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 Hence on that basis only some findings can be drawn, which are as follows:

1. 85% respondents are satisfied with their role and 15% are not satisfied with
their role in the organization to achieve company’s goal.
2. 84% of the employees are happy with their boss and 16% respondents think
that boss is unfair with them.
3. 87% of the employees are motivated and satisfied with their job.
4. 81% of the employees are seems to be happy with benefit packages provided
by the MB HOMES.
5. MB HOMES use both type of rewards to reward their employees i.e.
monetary and non- monetary.
6. 94% of the employees wants more new incentives or bonus schemes in the
MB HOMES.
7. 86% of the employees think performance appraisal system are able to improve
performance.
8. 100% respondents said that MB HOMES uses pay- for- performance policy.
9. 56% of the employees are satisfied with the current performance appraisal
system.

6.2: SUGGESTIONS AND RECOMMENDATIONS

As per the findings of the survey the monetary as well as the non-monetary
awards both are equally important but the main aim is to reward or
recognize employees time to time.
The recognitions like congratulatory cards, wall of fame, public applause,
and public recognition is of great importance.
There should be rewards or recognitions such that the employee can get to

40

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 celebrated the reward with his family members as well.
The organizations should always consider the employees also while making
some new policies or should involve the employees in basic level decisions,
to create a feeling of belongingness, in the employee, towards the
organization.
Symbolic recognition such as plaques or coffee mugs with inscriptions can
also be effective, provided they reflect sincere appreciation for hard work.
These latter expressions of thank.

CONCLUSION

As per the questionnaires filled up, the following conclusions can be drawn:
Employees should be given star of the month, where the best 3-5
employees should be awarded for their performances on a monthly basis,
based on ratings.
Employees are praised or recognized on a daily basis through some
meetings etc.

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EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 Idea/suggestion awards, where the employees are awarded if they manage
to provide the organization with some extraordinary suggestion etc.

Opinion of their employees should be considered while making the

schemes of reward and recognition.

The reward and recognition is treated as compulsion as it serves different

purposes or uses like-makes the employees more confident, creates feeling
of belongingness towards the organization, motivates the employees to
work better.

The Recognitions were considered to be more successful according to the

employers. Increments and bonuses or cash awards are common to all
organization.

BIBLIOGRAPHY

While doing this summer training project to formulate effect of performance

appraisal over employees motivation for the employees of MB Homes, I
needed opinions and guidance from some authorities on similar matters. In
this direction, I came across the following books and magazines, which I have
gone through for reference; they are-

BOOKS: -

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EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

 1. Brandi JoAnna. "9 Ways to Keep Employees Engaged." Entrepreneur.
2nd Edition, Published On 12thApril 2005, Publisher Brandi Education Pvt
Ltd. New Delhi.Page no. 157
2. Nelson Bob “1001 ways to reward and recognize your employee” 1st
edition 2008, published by Education Pvt Ltd New Delhi, Page no.86
3. Gregory Smith “Dynamic rewards energies your team”3rd edition 2007,
published by Hill Publishing Company Pvt Ltd. Page no.339

WEBSITES: -

www.tatateleservices.com.

www.google.com

www.motivationonline.com

ANNEXURE

Q1. Does role of employees in the organization as satisfactory?

 YES
 NO

Q2. Does boss treat all employees equal in the organization?

 YES
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EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

  NO

Q3. Does performance appraisal is improving employees motivation and job satisfaction in
the organization?
 YES
 NO

Q4. Does employees are satisfied with their benefit package?

 YES
 NO

Q5. Which type of rewards offered in the organization?

 YES
 NO

Q6. Does employees want any new incentives or bounce schemes?

 YES
 NO

Q7. Do you think performance appraisal system is able to improve performance?

 YES
 NO

Q8. Do you have a pay-for-performance policy that reward good performing employees?
 YES
 NO

Q9. Do employees satisfied with the current performance appraisal system?

44

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION

  YES
 NO

45

EFFECT OF PERFORMANCE APPRAISAL OVER EMPLOYEES MOTIVATION