A

PROJECT REPORT
ON
“A STUDY OF PERFORMANCE APPRAISAL PROCESS"
IN
"VIKVINS CONSULTANTS PVT. LTD.”

SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY
IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE MASTERS
OF BUSINESS ADMINISTRATION (MBA)

SUMITTED BY
Atish Ajay Chintalwar
UNDER THE GUIDANCE OF
PROF. SANDHYA SHELAR

SINHGAD BUSINESS SCHOOL, PUNE- 411 00

BATCH 2017-2019

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 DECLARATION

I, the undersigned, hereby declare that the project report entitle ““A STUDY OF
PERFORMANCE APPRAISAL PROCESS IN VIKVINS CONSULTANTS PVT. LTD.”.
Written and submitted by me to the Savitribai Phule Pune University, Pune in partial fulfilment
of the requirement for the award of degree of Master Of Business Administration (MBA) in year
2017-19. The project has conducted under the guidance of Prof. Sandhya Shelar, is my original
work and the conclusion drawn there in are based on the material collected by myself.

PLACE: Sinhgad Business School ATISH AJAY CHINTALWAR

DATE: MBA (HR)

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 ACKNOWLEDGEMENT

“It is not possible to prepare a project report without the assistance & encouragement of
other people. This one is certainly no exception.”

On the very outset of this report, I would like to extend my sincere & heartfelt obligation towards
all the personages who have helped me in this endeavor. Without their active guidance, help,
cooperation & encouragement, I would not have made headway in the project.
I am ineffably indebted to Mr. Sachin Badar, Lead HR, VIKVINS Consultants Pvt. Ltd and his
team for conscientious guidance and encouragement to accomplish this assignment.

I am extremely thankful and pay my gratitude to the director of SBS Dr. Vijaya Puranik and my
guide Prof. Sandhya Shelar for her valuable guidance and support on completion of this project.
I extend my gratitude to VIKVINS Consultants Pvt. Ltd. for giving me this opportunity.
I also acknowledge with a deep sense of reverence, my gratitude towards all the colleagues who
directly or indirectly helped me to complete this project report.
Any omission in this brief acknowledgement does not mean lack of gratitude.
Thank You

Date: ATISH AJAY CHINTALWAR

Place: MBA (II) Human Resource (2017-2019)

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 TITLE INDEX

Sr. No. TOPIC Page No.

1 Introduction and executive summary 1

1.1 Executive Summary 1
1.2 Introduction to topic 2

1.3 Concept and Significance for the need

of the study 3

2 Objective and scope of the project. 4

2.1 Objective of the study 4
2.2 Scope of the study 4
3 Literature review 5
3.1 Research gap 7
4 Introduction to Industry 8
4.1 Overview of Consulting Industry 8-12

5 Introduction to company 13-15

5.1 Vision 16
5.2 Mission 16
5.3 SWOT analysis for Vikvins
Consultants Pvt. Ltd. 16-17

6 Research Methodology 18
6.1 Methodology used 18-20
6.2 Research Design 21-22
6.3 Sources of Data 13
6.4 Research approach 24-25
7 Data analysis and Interpretation 26-29
7.1 Findings 30
8 Conclusion and Suggestion 31
8.1 Key Learning 31
8.2 Limitations 31

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8.2.1 Overcome the challenges 31
8.3 Suggestions 32
8.4 Conclusion 33
Annexure 34-35
Bibliography 36
Team Photo 37

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 CHAPTER 1

INTRODUCTION AND EXECUTIVE SUMMARY

1.1 EXECUTIVE SUMMARY

Appraisal is a continuous process and done annually as a formal exercise before completion of
the financial year. Appraisal has tremendous motivational impact on people through meaningful
feedback and is a powerful tool for recognition. This project explains performance appraisal
system and tries to find out how efficiently Performance Appraisal is conducted.
In this report I have done a detailed analysis on the performance Appraisal of VIKVINS
Consultants Pvt. Ltd. Here, I have developed a balance scorecard based on the performance
Appraisal for Marketing and Sales, Accounts, HR & IT. Besides these I have also incorporated
the history, Brief about the company and its performance, vision and mission, values and
products of VIKVINS Consultants Pvt. Ltd. and most importantly I have incorporated a brief of
how HR & Admin Department does their job in VIKVINS Consultants Pvt. Ltd.
While making the analysis on Performance Appraisal Process I have provided detailed
information about performance evaluation and I have covered all the related factors with it and in
addition to that I have tried to incorporate the theories that I have learned with the practices I
have seen. This report also provides a brief overview on different tasks I had to perform during
my internship, the responsibilities I had to handle during the internship, my personal observation
regarding the critical issues, the lacking of the HR Department and my recommendations for
improving the total HR practices of VIKVINS Consultants Pvt. Ltd.
Then I have presented the detailed analysis of how I have conducted the performance Appraisal
in the light of Balance Scorecard, by analyzing workload, Job Description, quantitative data
analysis and by analyzing business processes of VIKVINS Consultants Pvt. Ltd. Then I have
drawn a conclusion which sum up all the analysis and finally I present the format I have
successfully introduced at VIKVINS Consultants Pvt. Ltd. and which will be implemented as
official performance Appraisal Method from now on.

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1.2 INTRODUCTION TO THE TOPIC

Performance appraisal is a continuous system of tracking and measuring performance against

agreed targets and identifying opportunities for improvement. In other words, performance
appraisal is a set of policies to achieve a shared vision of the organization to help each individual
employee to understand and recognize their contribution. But Performance Appraisal is also the
tool to determine and communicate to an employee about his/ her performance on the job,
ideally, establishing a plan of development for both parties.
Managers are reluctant to provide candid feedback and have honest discussions with employees
for fear of reprisal or damaging relationships with the very individuals they count on to get the
work done. Employees feel that their managers are unskilled at discussing their performance and
ineffective at coaching them on how to develop their skills. Many complain that performance
appraisal systems are cumbersome, bureaucratic and time consuming comparing to the value that
it adds. This leads both managers and employees to treat performance appraisal as a burden
rather than a tool to a successful working relationship.
The primary reason for having a PA program is to monitor employees’ performance, motivate
staff and improve company morale. Monitoring performance requires routine documentation,
which is accomplished through completing a performance appraisal form. When employees are
aware that the company is paying special attention to their performance and that they could be
rewarded with merit increases and promotions, they are motivated to work harder. Morale is
improved when employees receive recognition or reward for their work.
An effective PA program will assist the company in achieving its goals and objectives. Not only
will training needs be identified and addressed during a PA review, but hidden talent can be
discovered as well. Through identifying these training needs, staff can perform their jobs at the
highest level and be in a better position to address clients’, members’ and customers’ concerns
and questions. A well-developed staff is more likely to be proactive, productive and resourceful,
all of which helps to give the company a competitive edge, from improved customer relations to
increased profits.

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1.3 CONCEPT AND SIGNIFICANCE FOR THE NEED OF STUDY

Performance appraisal provides important and useful information for the assessment of
employee's skill, knowledge, ability and overall job performance. The following are the points
which indicate the importance of performance appraisal in an organization:

1. Performance appraisal helps supervisors to assess the work performance of their subordinates.

2. Performance appraisal helps to assess the training and development needs of employees.

3. Performance appraisal provides grounds for employees to correct their mistakes, and it also
provides proper guidance and criticism for employee's development.

4. Performance appraisal provides reward for better performance.

5. Performance appraisal helps to improve the communication system of the organization

6. Performance appraisal evaluates whether human resource programs being implemented in the
organization have been effective.

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 CHAPTER 2

OBJECTIVES AND SCOPE OF THE PROJECT

2.1 OBJECTIVES OF THE STUDY

A. Primary objective:

To develop the Performance Appraisal System to introduce latest HR performance

assessment techniques, address the needs of employees and for the betterment of
VIKVINS Consultants Pvt. Ltd.

B. Secondary objective:
❖ To understand the performance indicators, Key Performance Indicators, motivational
factors, employee’s needs.

❖ To find out what they will do after evaluating the performance appraisal of the employees
and what will be the reward factors.
❖ To get an overall idea about the performance of VIKVINS Consultants Pvt. Ltd. and its
total employees
❖ To identify and bridge the gap between anticipated performance and actual performance.

2.2 SCOPE OF THE STUDY

This study will relate to the HR department of VIKVINS Consultants Pvt. Ltd. where
Performance Appraisal System is a very important area to work on with. The study will be
conducted based on “VIKVINS Consultants Pvt. Ltd. in evaluating different aspects and
criteria’s related with companies’ Performance Appraisal process. This report will give a detailed
idea of how I have developed Performance Appraisal process in the light of balanced scorecard.

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 CHAPTER 3
LITREATURE REVIEW

Will Artley (2001) had found in his research study that all high performance organizations are
interested in developing effective performance measurement and performance mgt. systems
since it is only through such system that they can remain high performing. So to attain and
maintain the needed level of performance, the performance mgt. systems are needed in the
organizations.

Rajeev.V (2008) in his article on Performance management focused on establishing goals for all
levels in the center, creating KPIs, delivering role-appropriate scorecards with KPI scores and
providing a framework for personal development. A fundamental element of performance
management is identifying the right KPIs to focus on for different levels in the center that are
also aligned with enterprise goals. The key is to start with an extensive set of predefined KPIs,
along with the ability for businesses to create their own general or line-of-business-specific
versions. These powerful solutions are impacting businesses across industries and around the
globe in measurable ways.

Liliane. M and Peter .M (2010) exclaimed in his research study that the performance and
competitiveness of different companies can be attainted through implementation of perfectly
defined performance measurement indicators and framework that are able to measure the
performance function by analyzing the use of certain performance indicators in management of
maintenance. They discovered that the maximum respondents have very less decisions and
changes in processes triggered by performance measurement.

Michael Pitt (2013) highlighted in his research study that Performance management is an
essential element to check the performance and quality of properties. This paper determined the
recent standards and performance of maintenance management system by studying high-rise
private office buildings.

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Jorge M. S, Carlos F (2010) in his research study had found that Performance management is
the sum up of performance appraisal systems long with wider human resource systems as a
means customer to be the focus of strategic organizational, operational and practices. Many
manufacturing organizations operate as open systems of operations. In these kind of systems,
latest operational technologies of manufacturing are enhanced with modern communication
technologies, information and to integrate and coordinate operational resources, activities and
processes in order to create a stream of value-added operations aimed at capturing and sustaining
a competitive benefit and performance management system proves to be very helpful in doing
so. Roger.S reviewed six latest performance management studies and organized the key findings
into two groups: Performance Management Impact on Organizational Success and Performance
Management Trends/ Best Practices that have proven successful for others and affect any
organization's bottom line.

Sayantani G, Niladri .D (2013) studied the impact of performance reward systems mainly
Performance Related Pay, the role of resources in influencing educational outcomes and the
reliability of existing methods of assessing educational performance. They reported the findings
which identify the methods of PMS in Indian and international education sector by introducing a
new model in performance management system. This model uses three forms to collect
information regarding the particular faculty from various sources that are the particular faculty,
students and Head of the Department. All this information will be send to the Management for
analysis and feedback. Major benefit is transparency.

Neeti and Santosh .C (2015) studied that employees have good knowledge of performance
appraisal and have a positive attitude towards it as their promotion is purely based on
performance appraisal and the ratings help to fix increments. During the course of study
suggestions came from the employees for the need of counseling. Performance appraisal should
be made more transparent and rationale.

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3.1 RESEARCH GAP
It has been found in my literature review that performance appraisal is very important without
which the organization cannot survive for a long time. I, as a researcher would like to focus on
the same side of the performance system.

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 CHAPTER 4

INTRODUCTION TO INDUSTRY

4.1 OVERVIEW OF CONSULTING INDUSTRY

The consulting industry isn't just made up of strategy consulting. It covers a wide variety of
expertise across multiple industries. Clients hire consultants to improve their performance, and
demand concrete results at every stage of a project. It's a tough industry to work in. It's even
tougher to make it your lifelong career.

What is a consultant? This is not as idle a question as it might at first seem, because everyone
seems to be a consultant these days. We have financial consultants, public relations consultants,
human resource consultants, and so on.
Consultancy is a blanket term that can refer to any form of professional advice-giving. Pretty
much anyone who is in a position to give specialized advice on a particular business process can
claim to be a consultant. He could be a distinguished professor from your local university, or the
hardworking employee of a global consulting firm.

Different kinds of consultancy

To keep things specific, we’d be focusing on what we’ll term as business consultancy. More
specifically, we’d be examining the firms that make up this wide-ranging industry. The
employees of business consulting firms all aim to improve their clients’ performance – they are
not hired to maintain the status quo, but to change it. The success of a consulting project is
measured by the extent to which a consulting firm is able to achieve concrete results, through the
changes it not just recommends, but carries out as well.
The top consulting firms in the world include well-known names like McKinsey & Company,
Boston Consulting Group, Bain & Company, IBM Global Services, Accenture, Braxton, Gartner,
A.T. Kearney, KPMG Consulting and Cap Gemini Ernst & Young. There are three possible
ways to segment the job scope of the consulting industry:

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• Specialist consultancy

Specialist consultancy focuses on a particular industry, or a particular business domain. For

example, there are consulting firms that have expertise in giving advice to the public sector or
the energy industry. And then, there are other firms that specialize in public relations, supply
chain management, accountancy, and so on.

• Strategy consultancy

This is the segment we usually think about whenever we talk about consulting. Strategy
consultants (also known as management consultants) offer advice that is typically targeted at the
client’s senior management. Strategy consultancy is regarded as a lucrative and prestigious
profession, the career of choice of many business school graduates all over the world, so it’s no
wonder that it gets a great deal of attention.

• Integrated solutions consultancy

Drawing expertise from a variety of domains, these consultants implement customized solutions
for their clients, such as building and installing new technology. Clients typically outsource
entire processes to these consulting firms, for them to directly manage the improvements needed.
Note that these segments are far from being clearly defined. By and large, the smaller the
consulting firm, the likelier it is for it to be a specialist consultancy. Large consulting firms on
the other hand, especially those whose practices span the globe, are very likely to operate in all
three segments at the same time. They may even have more ways to segment their own industry!

Why do companies use consultants?

Companies go to consulting firms to get fresh perspectives on intractable problems. It is often the
case that when you’re in the thick of a problem, you’d lose sight of the forest for the trees.
Hearing ideas from an independent source is a good way to get new ideas for improving business
performance. Consultants work with a large number of clients, and are necessarily familiar with
a wide variety of business models within their field of specialization. They are therefore in an

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excellent position to judge the viability of a client’s business, and subsequently recommend
changes that would help the client catch up to, or even surpass, its competitors.
Consulting starts when a client wants to improve performance in some part of its business, but
recognizes that it does not have the expertise to do it. It becomes particularly challenging when
the client needs to resolve the issue within a short frame of time. It is prohibitively expensive,
maybe even impossible, for the client to train its own staff to solve the problem. This is where
consulting firms come in. They provide external pools of expertise that clients can immediately
use on a short-term basis. Consulting firms thus provide economic access to specialised
expertise. The cost of training and developing these teams of external experts are borne by the
consulting firms, who spread the cost over multiple clients.
There’s also the advantage of using consultants to circumvent an organisation’s internal politics.
Change management is often a gut-wrenching process for a client’s company. Each ‘faction’ in
the company has its own vested interests to protect, which can lead to stubborn resistance against
change. Consultants work outside of their client’s hierarchy, and are therefore in a better position
to overcome such resistance.
And finally, there’s the fact that consultants are smart people. The consulting industry regularly
draws the top minds in business into its ranks and has an aggressive campus recruitment program
to hire to best fresh graduates. Whether you’re looking for an innovative solution, or a thorough
analysis, chances are that you’ll find the expert you’d need from a consulting firm.
Consultants are particularly good at applying a systematic approach to identifying and solving a
wide range of business problems. Each consulting firm uses its own, more or less unique,
methodology for analysis, and its consultants are trained to apply the methodology on all
projects. Consultancy is an intangible service, so the formulation of such methodologies is the
industry’s way of presenting its expertise in a tangible format. Essentially, a methodology is a
formal process by which all the issues behind a poorly defined problem is surfaced and
documented. It is a way of ensuring accountability throughout a project’s life cycle.

Consultancy in recent years

The consulting industry has its ups and downs like any other industry. Globally, consulting firms
are beginning to recover from economic downturn the early 2000s. Recruitment has been picking
up, but not yet at same scale as the booming 1990s.

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The mass hysteria of the dotcom era gave rise to a glut of poorly conceived consulting projects.
Naïve companies hired consultants willy-nilly to deploy the latest technologies in their
businesses. The failure of such projects to deliver promised results has led to a backlash against
the consulting industry, and consultants have come to be as vilified as insurance agents.
The industry remains lucrative, but getting into business consulting is now harder than before, as
both consulting firms and their clients have learnt their lessons in the wake of the dotcom bust.
Consulting firms are now expected to help clients squeeze maximum benefit out of all the
massively expensive investments that they’ve made in the previous decade. This calls for
specialized knowledge, which leads to a corresponding rise in demand for consultants who are
sufficiently experienced to understand the nuances of a client’s business model. Experienced and
knowledgeable enough to spot the elusive formula that would lead to long-term competitive
advantage for the client.
The sword cuts both ways. If you’re a fresh graduate, good luck to you if you’re hoping to join
consulting. Be prepared to face much fiercer competition for fewer openings. Sterling academic
results may not even garner you an interview with any of the major consulting firms. It’s no
longer enough to be smart – you’ve also got to have the professional track record to prove it.

You better have passion

The general consensus within the consulting industry is that the shake-up of recent years has
been a good thing – it has removed those who joined consulting simply for the money. There are
now a higher proportion of consultants who are passionate about their work, and are not just
motivated by a fat paycheck.
Between a candidate who is looking at the consulting industry as a stepping stone into other
careers, and another candidate who enjoys the intellectual challenge of analyzing complex
business issues, as well as the thrill of knowing that his hard work helps his clients perform
better, it doesn’t take much to guess which candidate will get hired by a consulting firm. Once
you consider the amount of resources that a firm will invest on turning their consultants into
bona fide experts, you’ll begin to appreciate why they’d prefer to hire someone who is
committed to consulting as a long-term career.

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Aspiring candidates who perceive consultants to be ‘business generalists’ will also do themselves
a great favor by getting rid of that stereotypical view. The industry has undergone a great deal of
restructuring in recent years. Some consulting firms have even hived off entire departments in
the effort to focus their resources on their competitive strengths, and are generally more
specialized than they were before. Each consulting firm has its own specific areas of expertise.
Their clients know it. You should too, if you don’t want to look stupid in front of your
interviewer.

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 CHAPTER 5
INTRODUCTION TO COMPANY

VIKVINS Consultants Pvt. Ltd

Vikvins Consultants Pvt. Ltd. was established in the year 2003 in Pune, India. In its long run,
Vikvins recognized itself as a trustworthy partner for many companies. With a headcount of
1000, it stands out to be one of the key Outsourcing Service Provider.
Vikvins sources ‘Hire-On-Contract Staff’ for managing responsibilities encompassing human
resource. We offer services to facilitate recruitment and handle staffing assignments at all
hierarchical levels and functions to enable our clients recruit the right people. We offer total
recruitment, dedicated manpower and placement solutions through our refined process, our
extensive database, and professional methods of selecting the eligible candidates. We provide the
client with a welcome kit, payroll, insurance coverage, up to date statutory compliance and a
dedicated HR SPOC to address HR related needs and grievances.

Management Team:
Mr. Vikrant Patil – Director
Mrs. Vinaya Patil – Director

Business Philosophy of the company:

“We are guided and driven by a value system in which we adhere to honest and ethical business
practices evaluate choices with a long-term perspective, endeavor to deliver results of desired
quality consistently and enjoy everything that we do. This value-system is the foundation of our
business philosophy and our professional strength. We strongly believe in keeping things simple
without any jargon to confuse and empowering our employees with unrestrained freedom to
achieve our cherished goal of Customer Delight.”

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Services Offered:

❖ Recruitment:

Campus recruitment sessions through Campus drives connect organizations with today’s
talented students for employment. At Vikvins, we have a dedicated team working closely
with our partner companies to deliver campus drives that create value for both students
and companies. We believe in tapping the best talent from across campuses and moulding
them into future leaders. We work to optimize job opportunities for students and at the
same time, we work to minimize the efforts made by our partner companies in looking
for the right candidate.

❖ Joining and Induction:

An induction program is an important process for bringing staff into an organization. It

provides an introduction to the working environment and the set-up of the employee
within the organization. The process will cover the employer and employee rights and the
terms and conditions of employment.

❖ Payroll (Salary) Processing:

Payroll outsourcing involves a third party (an outsourcing company) in the calculations of
salaries and deductions. The outsourcing organization is responsible for all the activities
of the payroll accounting. It saves time and cost for the organization. If there is more
number of employees (say more than 900-1000) in the organization, payroll outsourcing
would be very much beneficial. The data is provided to the consultants/outsourcing firms.
The various payroll functions undertaken by us:
• Analysis of payroll records and payroll taxes
• Medical claim processing
• Employee insurance and provident fund processing
• Quality Audit procedures and planning

❖ Statutory Compliance Outsourcing Services:

Benefits to employers-

• Focus On Core Competencies.

• Cost Control.

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• Rapid & Flexible Deployment of Resources.
• Reduced Administrative, Payroll, Accounting Cost.
• Regulatory & Statutory Compliance.
• Enhanced HR Services.

❖ Reimbursement Processing:

This document describes the process for individuals requesting reimbursement of travel
expenses that they have incurred on behalf of our company. The individual requesting
reimbursement is responsible for ensuring that his/her incurrence of the expense and the
related reimbursement request complies with all applicable policies, is properly approved,
and is properly supported with required receipts and other documentation. The signature
on the reimbursement form of the individual requesting reimbursement affirms that these
responsibilities have been met.

❖ Associate Database Management:

We manage and implement incentive plans, periodic emails be it periodic birthday email
or any other standard communication with employees, we manage all. Our team also
have capability in managing Induction, Exit and various other HR processes. We also
support in Regular HR Operations tasks like MIS reports, insurance support, employee
Insurance files & Audit reports.

• Regular employee communication like, new joiner email, birthday greetings.

• Managing, maintaining and updating employee database
• Manage and support key HR processes like, induction, joining and exit.
• Coordinating with the department on filling and submitting various statutory compliance
forms and reports.

❖ Management Information System (MIS):

Preparing data concerning fair employment practices in compensation administration HR

employee report. Reports such as these would be shared only with certain members of
HR staff and with our partner. A compensation analysis ensures that your company isn’t
violating legal compliances. Secure confidential HR reports and analyses electronically
through providing access to staff and executives on a need-to-know basis.

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5.1 VISION

To contribute significantly to the success of our client’s business by offering cost effective and
quality services that would result in Customer Delight.

5.2 MISSION

To consistently deliver value to our clients through solutions and services that enable efficient
recruitment and retention of human resources of appropriate capabilities and qualities better than
anyone else.

5.3 SWOT ANALYSIS FOR VIKVINS CONSULTANTS PVT. LTD.

Strengths:
1. Improvement in retention rate due to high hiring process.
2. Increased efficiency because of large-scale investments in R&D
3. The profitability has seen a tremendous growth due to expansions and renovations of Human
Resource industry.
4. Wide customer base in 9 countries that they operate in with more than 450+ employees.
5. 15 Years of Brand Legacy

Weakness:
1. All MNC and big companies have their own HR department to cut down the cost of
outsourcing.

Opportunities:
1. As it a Human Resource consultancy, it is bound to deal with all the companies and categories
in the market.
2. It can help to grow various small scale businesses.

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Threats:
1. Large number of HR consultancy in the market
2. Huge competition in the market.
3. Few Government Policies are making consultancies work difficult.

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 CHAPTER 6
RESEARCH METHODOLOGY

6.1 METHODOLOGY USED

A balanced scorecard Approach

A new approach to strategic management was developed in the early 1990's by Drs. Robert
Kaplan (Harvard Business School) and David Norton (Balanced Scorecard Collaborative). They
named this system the 'balanced scorecard'. Recognizing some of the weaknesses and vagueness
of previous management approaches, the balanced scorecard approach provides a clear
prescription as to what companies should measure in order to 'balance' the financial perspective.
The balanced scorecard is a management system (not only a measurement system) that enables
organizations to clarify their vision and strategy and translate them into action. It provides
feedback around both the internal business processes and external outcomes in order to
continuously improve strategic performance and results. When fully deployed, the balanced
scorecard transforms strategic planning from an academic exercise into the nerve center of an
enterprise.
Kaplan and Norton describe the innovation of the balanced scorecard as: "The balanced
scorecard retains traditional financial measures. But financial measures tell the story of past
events, an adequate story for industrial age companies for which investments in long-term
capabilities and customer relationships were not critical for success. These financial measures
are inadequate, however, for guiding and evaluating the journey that information age companies
must make to create future value through investment in customers, suppliers, employees,
processes, technology, and innovation."
The balanced scorecard suggests that we view the organization from four perspectives, and to
develop metrics, collect data and analyze it relative to each of these perspectives:

• The Learning and Growth Perspective

• The Business Process Perspective
• The Customer Perspective
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 • The Financial Perspective
The Learning and Growth Perspective:
This perspective includes employee training and corporate cultural attitudes related to both
individual and corporate self-improvement. In a knowledge-worker organization, people -- the
only repository of knowledge -- are the main resource. In the current climate of rapid
technological change, it is becoming necessary for knowledge workers to be in a continuous
learning mode. Government agencies often find themselves unable to hire new technical workers
and at the same time is showing a decline in training of existing employees. This is a leading
indicator of 'brain drain' that must be reversed. Metrics can be put into place to guide managers
in focusing training funds where they can help the most. In any case, learning and growth
constitute the essential foundation for success of any knowledge-worker organization.

Kaplan and Norton emphasize that 'learning' is more than 'training'; it also includes things like
mentors and tutors within the organization, as well as that ease of communication among
workers that allows them to readily get help on a problem when it is needed. It also includes
technological tools; what the Baldrige criteria call "high performance work systems." One of
these, the Intranet, will be examined in detail later in this document.

The Business Process Perspective:

This perspective refers to internal business processes. Metrics based on this perspective allow the
managers to know how well their business is running, and whether its products and services
conform to customer requirements (the mission). These metrics have to be carefully designed by
those who know these processes most intimately; with our unique missions these are not
something that can be developed by outside consultants.
In addition to the strategic management process, two kinds of business processes may be
identified: a) mission-oriented processes, and b) support processes. Mission-oriented processes
are the special functions of government offices, and many unique problems are encountered in
these processes. The support processes are more repetitive in nature, and hence easier to measure
and benchmark using generic metrics.

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The Customer Perspective:
Recent management philosophy has shown an increasing realization of the importance of
customer focus and customer satisfaction in any business. These are leading indicators: if
customers are not satisfied, they will eventually find other suppliers that will meet their needs.
Poor performance from this perspective is thus a leading indicator of future decline, even though
the current financial picture may look good.
In developing metrics for satisfaction, customers should be analyzed in terms of kinds of
customers and the kinds of processes for which we are providing a product or service to those
customer groups.

The Financial Perspective:

Kaplan and Norton do not disregard the traditional need for financial data. Timely and accurate
funding data will always be a priority, and managers will do whatever necessary to provide it. In
fact, often there is more than enough handling and processing of financial data. With the
implementation of a corporate database, it is hoped that more of the processing can be
centralized and automated.
But the point is that the current emphasis on financials leads to the "unbalanced" situation with
regard to other perspectives. There is perhaps a need to include additional financial-related data,
such as risk assessment and cost-benefit data, in this category.

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6.2 RESEARCH DESIGN

This research is a quantitative research where sources of information are collected from
questionnaires. This study is interested in describing the characteristics of population or
phenomenon, thus the study is descriptive study.

Types of Surveys
Three frequently used types of surveys are face-to-face interview, telephone interview, and
written questionnaire. They vary in terms of cost per respondent and types of questions you can
ask.
Face-to-face interviews are the most costly in terms of time and money. However, the
interviewers can explain complex issues and explore unanticipated responses. Consider the
question ``Do you have any suggestions for university administrators about how to improve the
college experience of WMU students?" A response like ``Improve dormitory facilities'' may be
too vague. The interviewer can then explore the issue further "Do you mean better rooms, better
study facilities, more computers, better food?" Another advantage is the interviewers' ability to
personally observe the respondent/s and the surrounding environment. This is particularly useful
for, say, surveys about work conditions or workplace interaction.
Phone interviews are cheaper and quicker than face-to-face interviews. They also allow the
interviewer to explain questions and react to responses. However, personal observation is not
possible. Furthermore some respondents may feel that the survey call, like a telemarketer's call,
is an invasion of personal time. This would inhibit honest, thoughtful answers.
Written questionnaire is the cheapest way to reach a lot of people. It also allows respondents to
remain anonymous, probably the questionnaire's strongest advantage. However, response rate
may be low ("another dumb survey") and this can lead to biased results. Furthermore, poorly
constructed questions can lead to inaccurate results.

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 Type of Survey Advantages Disadvantages

Face-to-face Interview Explain questions, explore issues, Expensive, need

make observations, use visual aids. interviewer training

at home or work Accuracy, better sampling Expensive

in public places Cheaper, more people in less time Less representative sample

Telephone survey Accurate, cheap No personal observations

Written questionnaire Cheapest per respondent Bias from low response rate

by mail Allows anonymity Slow

by e-mail Cheaper, quicker results Less representative sample

web survey Quicker data processing Need computing expertise

There are various types of surveys you can choose from. Basically, the types of surveys are
broadly categorized into two: according to instrumentation and according to the span of time
involved. The types of surveys according to instrumentation include the questionnaire and the
interview. On the other hand, the types of surveys according to the span of time used to conduct
the survey are comprised of cross-sectional surveys and longitudinal surveys.
In survey research, the instruments that are utilized can be either a questionnaire or an interview
(either structured or unstructured).

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6.3 SOURCES OF DATA
The source of data collected in this project is a primary source.
Methods to gather primary data was:-
1) Questionnaire
Typically, a questionnaire is a paper-and-pencil instrument that is administered to the
respondents. The usual questions found in questionnaires are closed-ended questions,
which are followed by response options. However, there are questionnaires that ask
open-ended questions to explore the answers of the respondents.
Questionnaires have been developed over the years. Today, questionnaires are utilized
in various survey methods, according to how they are given. These methods include
the self-administered, the group-administered, and the household drop-off. Among the
three, the self-administered survey method is often used by researchers nowadays. The
self-administered questionnaires are widely known as the mail survey method.
However, since the response rates related to mail surveys had gone low, questionnaires
are now commonly administered online, as in the form of web surveys.
Advantages: Ideal for asking closed-ended questions; effective for market or
consumer research
Disadvantages: Limit the researcher’s understanding of the respondent’s answers;
requires budget for reproduction of survey questionnaires

2) Interview
Between the two broad types of surveys, interviews are more personal and probing.
Questionnaires do not provide the freedom to ask follow-up questions to explore the
answers of the respondents, but interviews do.
An interview includes two persons - the researcher as the interviewer, and the
respondent as the interviewee. There are several survey methods that utilize
interviews. These are the personal or face-to-face interview, the phone interview, and
more recently, the online interview.
Advantages: Follow-up questions can be asked; provide better understanding of the
answers of the respondents

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 Disadvantages: Time-consuming; many target respondents have no public-listed
phone numbers or no telephones at all.

According to the Span of Time Involved

The span of time needed to complete the survey brings us to the two different types of
surveys: cross-sectional and longitudinal.
1. Cross-Sectional Surveys
Collecting information from the respondents at a single period in time uses the cross-
sectional type of survey. Cross-sectional surveys usually utilize questionnaires to ask
about a particular topic at one point in time. For instance, a researcher conducted a
cross-sectional survey asking teenagers’ views on cigarette smoking as of May 2010.
Sometimes, cross-sectional surveys are used to identify the relationship between two
variables, as in a comparative study. An example of this is administering a cross-
sectional survey about the relationship of peer pressure and cigarette smoking among
teenagers as of May 2010.
2. Longitudinal Surveys
When the researcher attempts to gather information over a period of time or from one
point in time up to another, he is doing a longitudinal survey. The aim of longitudinal
surveys is to collect data and examine the changes in the data gathered. Longitudinal
surveys are used in cohort studies, panel studies and trend studies.

6.4 RESEARCH APPROACH

Survey method as below:
Sample size: - 48

• Sample units: - Hr manager, hr executive, employees.

• Area of research: - Pune
• Contact method: - Telephonic and personal interaction

• Research instrument: - Questionnaire & Interview

• Sampling method: - Convenience sampling

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 • Convenience sampling is used in exploratory research where the researcher is interested
in getting an inexpensive approximation of the truth. As the name implies, the sample is
selected because they are convenient. This non probability method is often used during
preliminary research efforts to get a gross estimate of the results, without incurring the
cost or time required to select a random sample.

Methodology used as below:

1. Generating contact database from internet.
2. Making cold calls as well as physical calls for appointments.
3. Getting the survey form filled from employees.
4. Updating the data received in MS Excel and reporting to company`s guide on regular basis.
5. Analyzing the collected data with various tools on MS Excel.
6. Presenting the analysis with graphical interpretations of data.

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 CHAPTER 7
DATA ANALYSIS AND INTERPRETATION

As per the responses recorded through primary data (Questionnaire) collection method, the
analysis of the data is as follows:-
Q1. What is your name?

Q2. What is your designation in this organization?

Q3. What is your age?

Q4. How long you have been working in this company?

Q5. In your Opinion Performance Appraisal is?

The below chart shows that, 62% people in an organization feels that Performance appraisal is
nothing but an evaluation of employees.

Performance appraisal

evaluation of
13% employees
promotion of
15% employees
job satisfaction of
10% 62% employees
motivation

Q.6 Do you receive any increment in your salary after performance Appraisal?
Responses counts are more acceptable for their salary increase after performance appraisal.

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 Increment after performance
Appraisal

17%
yes
no
83%

Q7. Kindly tick in the column which is most relevant to you.

aspects of performance appraisal

helps to change behaviour of Employees
top level management show parciality
improves motivation
Performance of employees improves
constructive criticism in a friendly and…
helps achieve meaningful goals
encouraged to share one another burden.

0 5 10 15 20 25 30 35 40
constructive
encouraged helps Performanc top level helps to
criticism in a
to share one achieve e of improves managemen change
friendly and
another meaningful employees motivation t show behaviour of
positive
burden. goals improves parciality Employees
manner
Strongly agree 10 30 10 5 10 5 10
Agree 20 10 25 35 30 5 20
Neutral 10 5 5 5 10 10 10
Disagree 4 2 4 2 4 15 4
Strongly disagree 4 1 4 1 4 10 4

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Q8. In your opinion Performance Appraisal system of your organization is related to which
of the following ?
As we can see, the chart shows that a whopping 73% people thinks that performance appraisal is
related to retention of employees.

Performance appraisal is related to

2%
4% Retention of employees
10%
Recruitment system
11% Organization culture

73% Motivation
other

Q9.Improvement in your performance after performance appraisal.

Chart suggests that more number of employees feels their performance duly increase after
performance appraisal.

Improvement in performance after performance

appraisal

17%
10% to 20 %

21% 20% to 30%

62% 30% above

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Q10. From how many years you are working with this organization?
Large number of employees are accumulated for 0 to 5 years according to the chart below.

Years in organization

10%

0-5 years
5-10 years
38% 52%
10-15 years

Q11.Who evaluates the Performance in your organization?

Chart shows that performance of an employee is evaluated more by top management.

Performance evaluation

6%

17% By top management

Self-appraisal
4%
Subordinate appraisal
Peer appraisal
73%

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7.1 FINDINGS

• It has been found that large number of employees in an organization thinks that
performance appraisal is more of an evaluation of employees than the other factors like
promotion, job satisfaction and motivation of employee.
• It has been found that there is a mostly an increment in a salary of an employee after his
performance appraisal.
• It has been found that, with the broader perspectives of an employee, many agree to the
point that the change of behavior occurs due to performance appraisal.
• It has been found that, top level management does not show any partiality within the
employees.
• With the research, it has been found that, most of the employees in an organization agree
that performance appraisal gives motivation to work further.
• As the research taking into an account, it has been found that, almost all the employees in
an organization agree that performance appraisal spreads friendly environment amongst
them.
• It has been found that, larger percentage of employees in an organization think,
performance appraisal is related to retention of employees.
• It has been found that Performance appraisal of an employee is always evaluated by the
top level management of an organization.
• With the research, it has been found that larger percentage of employees think their
performance improves after their evaluation of performance appraisal in an organization.
• Taking the research into an account, it has been found that, larger portion of the people
agree to the point that performance appraisal helps to achieve meaningful goals in an
organization.
• As per the research, it has been found that performance appraisal helps employees to
share each other’s burden for the flexibility of nature.

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 CHAPTER 8

CONCLUSION AND SUGGESTION

8.1 KEY LEARNINGS

1. Learnt being professional (punctual, dressing, vocabulary, tone, reporting,

communication)
2. How to engage client in a talk to get our work done.
3. Sharing of knowledge to increase our own knowledge base.
4. Soft skills and convincing techniques.
5. Prioritizing the work on time to gain maximum output (Time Management).
6. Ground talks with peoples who can teach you with required knowledge and also life
skills.
7. Personal goodwill with the society.

8.2 LIMITATIONS

• Hard to get an appointment.

• Meeting with the concerned person.
• Not disclosing brand name and name of current projects.
• Bad Weather
• Had to spend more time to get questionnaire filled.
• Limited knowledge with the respondent.
• The time period of an internship was limited.

8.2.1 OVERCOME THE CHALLENGES

• Try to build a chain of network.

• Used references in a correct manner.
• Prioritizing the work on time to get maximum output.
• Created a personalized goodwill to get references.
• Took appointments using phone calls and mailing method, which saved time.

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 • Engaging the respondent with sharing of knowledge for disclosing the required answers
of Questionnaire.

8.3 SUGGESTIONS

• As per the findings I would like to suggest that Performance Management is a very
powerful process if implemented correctly. Mistakes can be avoided by consulting
experts who have had experience across multiple industries and many implementations.
• Another suggest is that an employee should be aware about the policy and the reward
system for the flexibility.
• I would like to suggest that Supervisors or the top level management should understand
and communicate how the goals of the organization directly impact the employee's job
and performance.
• Another important suggestion is that there should be flexible working hours which makes
it easier for employees to avoid rush hour traffic, which is guaranteed to improve
anyone’s attitude.
• Need more cooperation and relation within departments.
• More training should be provided.
• Job rotation, Job enlargement and Job enrichment should be followed.

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8.4 CONCLUSION

Performance 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, co-operation,
judgment, versatility, health and the like. It also helps in developing strength and rectifies
weakness of the employees. VIKVINS has been conducting performance appraisal from the past
years from its formation. Employees were cooperative and fully supporting the performance
appraisal in the institution and it was found to be highly effective in the employee’s performance.
VKKVINS has been running successfully for past several years and has created a good name
among its customers and society. People having poor background are given training and
provided with jobs. Performance appraisal can be conducted more effectively by using the right
tools and properly reviewing and updating the performance appraisal program. Suggestion from
employees and experienced personnel can further enhance and make the performance appraisal
an ideal evaluation system.

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ANNEXURE

39
40
 BIBLOGRAPHY
Web Links (Source of Information)
1. https://www.managementparadise.com/ on 14th October
2. https://www.vikvins.com/
3. http://shodhganga.inflibnet.ac.in/ on 16th October
4. http://enotes.com/ on 15th October. Page no 19.
Topic: What is performance appraisal?
5. http://project99.com/ on 16th October
6. http://admissionsindia.com/ on 17th October

Research Paper
1. D. B. Bagul: Study of Employees Performance Appraisal System,
Paper no: ISSN: 2348-3083 on 811 on 18th October. Page no 31.
Topic: Literature review

2. Research Paper on a study of effectiveness of Performance Appraisal system by Dr. J.

Vincent Xavier
Paper no: ISSN: 2348-6503 (online) on 14th October.

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 TEAM PHOTO

PROJECT TEAM AT VIKVINS

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