PERFORMANCE APPRAISAL SYSTEM

BY:

Kakar Harshita Kapadia Akshat Kapadia Jetul Mishra Nupur Naik Pratik

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S.R. LUTHRA INSTITUTE OF MANAGEMENT

PERFORMANCE APPRAISAL:
Performance Appraisal is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost, and time) typically by the corresponding manager or supervisor. A performance appraisal is a part of guiding and managing career development. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization. Performance appraisal is an analysis of an employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgement of an employee's performance in a job based on considerations other than productivity alone.

AIMS OF A PERFORMANCE APPRAISAL SYSTEM:

Give employees feedback on performance. Identify employee training needs. Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, bonuses, etc. Facilitate communication between employee and employer. To improve performance through counselling, coaching and development.

NEED FOR A PERFORMANCE APPRAISAL SYSTEM IN A COMPANY:

People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. Performance appraisals of Employees are necessary to understand each employees abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance.

PERFORMANCE APPRAISAL SYSTEM AT KFC RESTAURANTS

INTRODUCTION TO KFC:
KFC means Kentucky Fried Chicken. It has its headquarters in Louisville, Kentucky. It is the world's most popular chicken restaurant chain, specializing in Original Recipe, Extra Crispy, Twister and Colonel's Crispy Strips chicken with home style side offerings. Every day, nearly eight million customers are served around the world. KFC is one the worlds best known and loved brands today, but this would not have been possible without its employees. The manager of KFC says the secret is just the way you treat people. Treat them right! HERE RANKING METHOD AS WELL AS RATING SCALE METHOD OF PERFORMANCE APPRAISAL IS USED

PERFORMANCE APPRAISAL AT KFC:

At KFC, a recognition culture is very much in practice. According to a restaurant manager, recognition is everybodys responsibility. KFC strongly believes that employees should be rewarded amply for putting in a large portion of their lives into the company. Regular performance appraisals are held and employees who have made significant contributions to the company are rewarded for their input. As an example, the Chicago-area Assistant Restaurant Manager Alvin Moore received a recognition award a watch with a symbolic gold emblem featuring the KFC logo. In celebration of his accomplishment, Moore was granted the day off but he still stopped by the restaurant to see if he could be of help. C.H.A.M.P.S which stands for Cleanliness, Hospitality, Accuracy, Maintenance, Product, and Speed is an example of a successful recognition program in which any employee can give a C.H.A.M.P.S. recognition card to another employee when they notice commendable behaviour. Then, each week the restaurant manager draws from the completed C.H.A.M.P.S. cards and offers the champion a low- or no-cost prize called Priceless Rewards. This could be a pair of movie tickets or a promise of the manager washing the employee's car in the parking lot.

Recommendations:

The HR department of KFC is definitely doing its job well. The company has the lowest turnover rate in the fast food industry. However, when a company reaches the pinnacle of success with regards to any aspect, it has to try even harder to stay there and maintain its position. Hence, KFC should try to keep up the good work and maintain the level of commendable workforce development practices.

PERFORMANCE APPRAISAL SYSTEM AT AIRTEL

INTRODUCTION TO AIRTEL:
Bharti Airtel Limited, commonly known as Airtel, is an Indian telecommunications company that operates in 20 countries across South Asia, Africa and the Channel Islands. It operates a GSM network in all countries, providing 2G or 3G services depending upon the country of operation. Airtel is the fifth largest telecom operator in the world with about 230.8 million subscribers across 19 countries at the end of June 2011.It is also a provider of broadband and subscription television services.

HERE RATING SCALE METHOD PERFORMANCE APPRAISAL IS USED

OF

PERFORMANCE APPRAISAL AT AIRTEL:

At Bharti Airtel the performance management system is quite robust which is designed keeping in mind both organizational as well as the individual goals and aspirations. A performance plan is negotiated between a manager and employee for a given period. The employee agrees to achieve a specified level of performance in exchange for a reward or to avoid discipline. The plan also commits the manager to assist the employee improve his/her performance. Performance is appraised at year-end and decisions are made to reward, discipline or develop employees. Performance is measured in terms of either goals or competencies. Goals are best reserved for professional or managers and competencies used for employees who are less skilled and/or have less control over their work environment. Performance pay or promotional opportunities are typical rewards. Employee development, is used to address incompetence. Employees who cannot successfully undertake this development are made redundant to their position and either redeployed to a position they can handle or given a redundancy package.

Recommendations:
There is lack of a feedback system for employees by which

they can express their feelings about the appraisals.

There is lack of transparency in the entire system. Once the employees have filled up the KRAs and self-appraisals, they do not know anything about the ratings given to them by their respective reporting manager, reviewer and the normalization committee. So there should be a provision that the employee can take regular feedback from his reporting manager and the HR department regarding the ratings awarded to them. The whole process is based upon paper work, which is very tedious and leads to many discrepancies. The ratings awarded to an employee on the basis of his behavioural traits are only qualitative in nature and the quantitative aspect of the same is neglected.

CONCLUSION
A sound appraisal system can contribute both to organizational morale and organizational performance, by improving the probability that a good performance will be recognized and rewarded and poor performance corrected.
At the end of our Study of the Performance Appraisal Systems of KFC Restaurants & Bharti Airtel, we have gained a hand on experience, which has helped us in enriching our knowledge about the performance management system that the organization employ in order to keep the employees satisfied and motivated.