A STUDY ON PERFORMANCE APPRAISAL SYSTEM AT CHANDRU RUBBER FACTORY, MADURAI PROJECT REPORT Submitted by BALA MURUGAN.P Register No: 088001617002 In partial fulfillment for the award of the degree Of MASTER OF BUSINESS ADMINISTRATION SENGUNTHAR ENGINEERING COLLEGE TIRUCHENGODE May – 2010
SENGUNTHAR ENGINEERING COLLEGE TIRUCHENGODE DEPARTMENT OF MANAGEMENT STUDIES PROJECT WORK May – 2010 This is to certify that the project entitled A STUDY ON PERFORMANCE APPRAISAL SYSTEM AT CHANDRU RUBBER FACTORY, MADURAI is the bonafide record of project work done by BALA MURUGAN.P Register No: 088001617002 of Master of Business Administration during the year 2009-2010Project Guide Head of the DepartmentSubmitted for the Project Viva-Voce examination held onInternal Examiner External Examiner
DECLARATION I affirm that the project work titled “A STUDY ON PERFORMANCE APPRAISAL SYSTEM AT CHANDRU RUBBER FACTORY, MADURAI” being submitted in partial fulfillment for the award of Master of Business Administration is the original work carried out by me. It has not formed the part of any other project work submitted for award of any degree or diploma, either in this or any other university. BALA MURUGAN.P (088001617002)I certify that the declaration made above by the candidate is true Signature of the Guide, Miss.V.R.MALARVIZHI, Lecturer.
ACKNOWLEDGEMENT First of all I express my sincere gratitude to Lord Almighty for showedupon me. I deem it a pleasure to express my sincere thanks our correspondentMr.T.P.ARUMUGAM, correspondent, Sengunthar Engineering College,Tiruchengode for giving me an opportunity to undertaken this project. I express my sincere thanks to our respected director,Prof.A.BALADHANDAPANI, M.A., M.Phil, Sengunthar EngineeringCollege, Tiruchengode for making a good atmosphere to do this project. I express my sincere thanks to Dr. N. KOTTISWARAN, B.E. (civil),M.E (struct),PhD(struct),., Principal, Sengunthar Engineering College,Tiruchengode for their valuable advices and encouragement which enabled todo my project. I express a deep sense of gratitude and hearty thanks toDr.M.S.R.MARIYAPPAN MBA.,M.Phil.,Ph.D.,ACIM. Head of theDepartment of Business Administration, Sengunthar Engineering College,Tiruchengode for making all necessary arrangement for the successfulcompletion of this project work. I am also thankful to my faculty guide MS.V.R.MALARVIZHIMBA.,M.Phil.,for the whole hearted support and help given to me forconducting this project work and preparing this report.I also express sincere thanks to Mr.MUNIYANDI, ADMINISTATIVE OFFICER,Mr.SRINIVASAN , MANAGER and CHANDRU RUBBER FACTORY,MADURAI for helped me in doing the project work successfully. BALA MURUGAN.P
ABSTRACT In today’s organisation, growth depends on individual performance.Performance appraisal is used for evaluvating a person’s behaviour at the workspot. Anorganisation’s goals can be achieved only when people put in their best efforts.Performance appraisal helps in making many decisions such as promotion andcompensation. It tries to link both the individual and organisational goals and creates asense of opensess and trust between them. The present study on performance appraisal was carried out for employees atCHANDRU RUBBER FACTORY, MADURAI. A questionnaire was framed and data was collected from respondents. The datawas collected from 100 respondents selected by simple random sampling method. Thedata was analysed using simple percentage ethod and chi-square. Based on the findings,suggestions were given to improve the performance appraisal system in the organisation.
CONTENTS ABSTRACT LIST OF TABLES LIST OF CHARTS LIST OF CHI –SQUARE TABLESCHAPTER PARTICULARS PAGE. NO 1 Introduction 1.1 About the study 1.2 About the Industry 1.3 About the Company 2 Main Theme Of Project 2.1 Objectives of the study 2.2 Scope 2.3 Limitations 2.4 Research Methodology 2.5. Review Of Literature 3 Analysis &Interpretation Findings, Suggestions & 4 Conclusion 4.1 Findings 4.2 Suggestions 4.3 Conclusion Bibliography
LIST OF TABLESS.No Title Page No3.1 Age Of The Respondents3.2 Gender Of The Respondents3.3 Marital Status Of The Respondents3.4 Educational Qualification Of The Respondents3.5 Experience Of The Respondents3.6 Monthly Salary Of The Respondents3.7 Level Of Satisfaction Based On Their Job3.8 Working Condition3.9 Know About Performance Appraisal System3.10 Necessity Of Performance Appraisal3.11 Frequency Of Performance Appraisal3.12 Any Performance Standard Fixed Actions Taken After Performance Appraisal To Improve3.13 Performance3.14 Attainment Of Organization Goals3.15 Attention To The Employee Opinion3.16 Improvement Of Employee Performance & Productivity3.17 Need For Training Programs3.18 Appraisal For Group3.19 Specification Of Rating System3.20 Feed Back For Improving3.21 Expectation Of Various Benefits On Post Appraisal3.22 Performance Appraisal Influencing The Respondents3.23 Awareness About Self Appraisal
LIST OF CHARTS PageS.No Title No3.1 Age Of The Respondents3.2 Gender Of The Respondents3.3 Educational Qualification Of The Respondents3.4 Experience Of The Respondents3.5 Monthly Salary Of The Respondents3.6 Level Of Satisfaction Based On Their Job3.7 Working Condition3.8 Know About Performance Appraisal System3.9 Frequency Of Performance Appraisal3.10 Performance Standard Measures Improvement of employee performance &3.11 productivity3.12 Specification Of Rating System3.13 Expectation Of Various Benefits3.14 Awareness About Self Appraisal
LIST OF CHI-SQUARE TABLES PageS.No Title No 1 Table Showing Salary And Job Satisfaction Using Chi-Square Test 2 Table Showing Gender And Job Satisfaction Using Chi-Square Test 3 Table showing education and benefits using chi-square test 4 Table showing experience and benefits using chi-square test 5 Table showing age and working conditions using chi-square test 6 Table showing age and salary using chi-square test
CHAPTER - I INTRODUCTION1.1 ABOUT THE STUDY A “performance appraisal “is a process of evaluating an employee’s performance of a job in terms of its requirements. It is “process of estimating or judging the value, excellence, qualities or status of some object, person or thing”. Performance appraisal has been considered as a most significant and indispensable tool for an organization, for the information it provides is highly useful in making decisions regarding various personal aspects such as promotion and merit increases1.1.2. PERFORMANCE APPRAISAL MEANING: Performance refers to the degree of accomplishment of the tasks that make up an individual job. It indicates how well an individual is fulfilling the job demand. Performance is always measured in terms of results. Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance. When properly conducted, performance appraisals not only let the employee know how will he is performing but should also influence the employee’s future level of effort, activities, results and task direction. Performance appraisal evaluates not only the present performance of a worker but also his potential for development.
DEFINITION: According to FLIPPO, “Performance appraisal is a systematic, periodic and so faras humanly possible, and impartial rating of employee excellence in matters pertaining tohis present job and to his potentialities for a better job”1.1.3. NATURE OF PERFORMANCE APPRAISAL: Performance appraisal is a continuous activity. The management should plan it ina systematic and orderly manner. Some trained and experienced experts must organize it.If organized and operated carefully, it eliminates the chances of personal prejudices andsubjectivity in the appraisal; it is instrumental in boosting the morale of the employees.Performance appraisal relates to 1. Individual Performance and 2. Organizational performance1. INDIVIDUAL PERFORMANCE: The most important issue in performance appraisal is to decide the objective. Itincludes. 1. Role clarity 2. Increased communication 3. Performance planning 4. Strengthening superior-subordinate relationship. 5. Data generation for personal decision 6. Performance improvement 7. Identifying development needs 8. Improving executive effectiveness.
2. ORGANIZATION PERFORMANCE: Organizational performance is assessed in terms of its employee’s performance.Human resources are considered the most vital and valuable resources of an organizationas the productivity and quality of an organization are directly linked to people workingfor it. 1. To evaluate the performance of the employee on his present job. 2. To determine what steps should be taken to improve his performance on the present job. 3. To consider the employee’s potentials for promotion. 4. To consider the employee’s suitability for different types of a assignments. 5. To decide on the increments as a reward for performance and progress. 6. To evaluate the employee’s value to the organization compared with other employees. 7. To identify unsatisfactory employees for demotion or terminate 8. To recognize employee’s contribution. 9. To determine the training and development needs of employees. 10. To inform employees where they stand. 11. To determine salary increments etc., and 12. To facilitate organizational planning, placement of suitability i.e., promotion, transfer, demotion, termination, for training and development purpose.
1.1.4 APPRAISERS OF PERFORMANCE: Managers and supervisors traditionally gave served as appraisers of theirsubordinate’s performance. In most instances they are in the best position to perform thisfunction, although it may not always be possible for them to do so. Supervisors oftencomplain that they do not have the time to fully observe the performance of employees. The result is a less-than-objective appraisal. These managers must then onperformance records or the observations of other to complete the appraisal. For example,American Express uses individuals as telephone monitors to gauge the quality ofconversation between a service center re representative or credit analyst and a customer.This information is then given 10 the supervisor for use in completing the employee’sperformance appraisal.There are some points in appraiser of performance. They are: Appraisal by superior Peer appraisals Appraisal subordinates Self-appraisal Appraisal by outsiders
1.2. ABOUT THE INDUTRY It was in 1902, a hundred year back, the rubber cultivation was introducedin India on commercial scale. Though the sector was dominated by large estates duringthe initial five decades it has undergone important structural transformation leading to thedominance of small holdings which today account for 88% of the area and production.There are about one million holdings in the country with an average holding size of lessthan 0.5 hectare. In terms of expansion of area production and productivity, natural rubber isachieved. The area increased from 75,000 in 1950-1951 and 5,65,000 at the end of 2001-2002. the production increased from 15,830 tones to 6,34,000 tones and the averageproductivity from 284 kg to 1576 kg per hectare. India is the third largest producer of natural rubber next to Thailand andIndonesia, sharing about nine percent of the global output. In the global output India’sshare in 1955 was only 1.2 percent. The important future in Indian natural rubber production sector is relatively highin the degree of regional concentration. Natural rubber production is concerned in theTraditional region of Kerala, kanyakumari of Tamil nadu and Dhaksin kannnada districtof Karnataka, which together account for 97.5% of the production in 91% of the area.The major issue in the traditional rubber growing areas is the increasing share of the parttime farmers and operational level problems associated with the increasing dependenceon hired labour. India will have to enter the international market with exports of natural rubberparticularly of high quality latex, sheets and block rubber. India is the fourth largestconsumer of natural rubber next the USA, China and Japan.
1.3. ABOUT THE COMPANY A well established “Chandru rubber India limited” was started in December 09.Mr. PANEER SELVAM & CHANDRA SEKAR was founder of the company. He hadworked in fenner for the past several years. The factory located with in 2 acres .Theindustry totally contains 120 employees and 10 officers. Vee belt, fan belt and automobile cogged belt are the products that aremanufactured in the company and the brand name given to these products are “Veegrip”.The raw materials that are used to produce these products were rubber, oils, chemicals,cards and carbons. They usually purchased the raw materials from kerala, Madurai,Chenai and Mumbai. They market their product all over India and Nepal. Directmotivating, indirect motivating and the proper training are given to employees.The three steps are followed to reduce wastages and that include Problem identifying Corrective action Employees training The company is certified as on ISO. The factory has planned to make their product as aworld class product and to be available everywhere. “FENNER INDIA LIMITED” is oneof the leading competitors for CHANDRU RUBBER INDIA (p) ltd
QUALITY DEPARTMENT CHANDRU RUBBER COMPANY’S Goal is to be a leader in the manufactureand supply of quality belts for industrial and automotive power transmission applicationand up-dating efficient manufacturing process. Commitment to meet the customers requirements through continual improvementand involvement of all employees will be the key for achieving the goal.MARKETING AREA: A. Rameshwaram district fully B. Salem C. Trichy D. Karaikud, and E. Total Tamil NaduOther states: A. Chidhu B. Manguloor C. Vijaya wada
PRODUCTION PROCESS MIXING EXTRUDER CALENDERING CORD DIPPING LINE SINGLE DRUM BUILDING MACHINE WRAPPING CURING DOUBLE DRUM BUILDING MACHINE BASE JOINING FLIPPING PRESS CURING TRIMMING
CHAPTER – II 2. MAIN THEME OF THE PROJECT2.1 OBJECTIVES OF THE STUDY To find out the best technique for evaluating the performance of employer. To study about the employee awareness about performance appraisal system To find out the importance of performance appraisal system in the area of training, career planning, remuneration and objectives of setting. To give suggestions for the improvement of performance appraisal system.2.2. SCOPE AND LIMITITAIONS: The study helps to know about the performance appraisal of employees inCHANDRU RUBBER INDIA (p) ltd; Madurai .The study covered of all thedepartments in the organization. It explains the employee’s performance and it also helpsto directly motivate them in their work.2.3. LIMITAT1ONS: • In this survey the sample size has been limited to100 because of time constraint. • The survey was conducted to the employees of CHANDRU RUBBER FACTORY and so this survey gives data with respect to that unit only. • Some of the respondents do not reveal their time feeling. • The result is not applicable to all organization. • Some employees are less interested in answering the questionnaire as it is an interruption to their work.
2.4. METHODOLOGY In order to achieve the objective the data are collected from the employees. Themethodology of research is clearly explained below. The primary data collected in thesurvey are subject to proper analytical study.RESEARCH METHDOLOGY Research methodology is a way to systematically solve the problem. In view ofthe research objective the research methodology adopted during the research process isdescribed below.RESEARCH DESIGN: Research design mean the plan or the structure and the strategy forinvestigation so designed as to given accurate answer to the research problem itgives direction to the research, and allow him top collection only relevantinformation. In this research, the researcher has chosen descriptive researchdesign.DESCRIPTIVE RESEARCH DESIGN Descriptive Research includes survey and fact finding enquiries of differentkinds. The major purpose of descriptive research is description of the state ofaffairs, as it exists at present. In this method the researcher has no control over thevariables. He can only report what has happened and what is happening.The study was done in the following steps: 1. Instrumentation. 2. Pre-Testing. a) Sample used in the study. b) Administration of the instrument. c) Findings of the pre-testing. 3. Main study
1. Instrumentation: In order to study the performance appraisal system of employees conducted in the company, a questionnaire was framed to know their opinion. The first part of the questionnaire contains opinion of the employees regarding objectives of appraisal in the organization. The latter part consists of process of appraisal, method of performance feedback, benefits of the performance appraisal system and the expectations of employees regarding the performance appraisal. The questionnaire was closed ended.2. Pre- Testing: Pre- testing was undertaken prior to the main study. The objectives of the pre- testing are as follows. To know whether the responds could easily understand the prepared questionnaire. To know the time taken by the respondents to complete the questionnaire. To know whether the questionnaire needs any modifications. a) Sample Used in the Study: For the purpose of the pre- testing, 10 respondents were randomly selected from various sections. b) Administration of the instrument: The questionnaire was distributed to the respondents. The questionnaire was a closed ended one and the respondents were asked to choose any of the options provided and free to discuss any doubts regarding the study. c) Finding of the Pre-testing: The findings of the pre-testing are as follows: The responds were able to understand all the questions. They took 10-15 minutes to complete the questionnaire.
3. Main Study: The necessary modifications were done after pre-testing and the modifiedquestionnaire was used for the main study.SAMPLING TECHNIQUE Sampling is that, where only a few unit of population under study areconsidered for analysis. In this study simple random sampling technique was usedto select the samples.Probability sampling (Random sampling) In probability sampling every item of the universe has been equal chanceof inclusions in the sample.Simple random sampling It is a method of random sampling. Simple random sampling selects bymethods that allow each possible sample to have an equal chance of beingincluded in the sample.SAMPLE SIZE Out of about 500 probable respondents, 100 respondents were selected coveringemployees from all departments in CHANDRU RUBBER INDIA (P) LTD, MADURAI.SOURCES OF DATA COLLECTION Data has been collected form primary and secondary sources.PRIMARY DATA: It was mainly collected through structured questionnaires form employees.SECONDARY DATA: It was obtained from company’s records, manuals, references, journals and othermagazines websites.
TOOLS FOR ANALYSIS: The researcher has used the following tool during analysis.PERCENTAGE METHOD: Percentage refers to a special kind of ratio percentages are used to describerelationships. It can also be used to compare the relative terms. Some other tools whichare used,CHI-SQUARE TEST: It is used to find the significance of discrepancy between experimental value andthe value obtained under some theory or hypothesis. This test is also known as test ofgoodness of fit.Chi-Square Test Formula: Where O - The observed frequency E - The expected frequencyExpected frequency formula E -Degree of freedom: (r – 1) (c – 1) Where r - Number of rows c - Number of columns
2.5. REVIEW OF LITERATUR 1) Performance evaluations have been conducted since the times of Aristotle Landy, Zedeck, Cleveland, 1983. The earliest formal employee performance evaluation program is thought to have originated in the United States military establishment shortly after the birth of the republic (Lopez, 1968). The measurement of an employee’s performance allows for rational administrative decisions at the individual employee level. It also provides for the raw data for the evaluation of the effectiveness of such personnel- system components and processes as recruiting policies, training programs, selection rules, promotional strategies, and reward allocations 2) In addition, it provides the foundation for behaviorally based employee counselling. Performance measurement allows the organization to tell the employee something about their rates of growth, their competencies, and their potentials. Accurate appraisal of hedge fund performance must recognize the freedom with which managers shift asset classes, strategies, and leverage in response to changing market conditions and arbitrage opportunities. 3) Managerial appraisal has sometimes been referred to as the Archiles heel of management staffing, But it is probably a major key to managing itself. A study showed that performance appraisal system comprised of a self appraisal, communication of expectations, and employer participation enhanced employee trist in management. 4) In a study it was found that in India, managers use it for promotion and transfer, training and development, feedback, determining eage increase and follow up interviews 5) The surveys on performance appraisal show that its purpose is to assess training needs, improve current performances, review past performance, assess, future potential, assist career planning, set peroformance objectives and assess salary increase.1.landy, Zedeck, Cleveland, 1983). 2.(Harold Koontz & Heinz Weirich) 3.ayer &Davis,1990) 4.Pareek & Rao, 1981) 5.ill,1997)
CHAPTER –III ANALYSIS AND INTERPRETATION TABLE: 3.1 AGE OF THE RESPONDENTS S.NO AGE GROUP NO.OF PERCENTAGE RESPONDENTS 1 Below 20years 35 35 2 20-25years 26 26 3 26- 30Years 15 15 4 31-35 Years 11 11 5 Above 35 Years 13 13 Total 100 100INTERPRETATION The above table shows that the age particulars, 35% of respondents belongsto below 20 years age group, 26% of respondents are between the age group of 20-25years, 15% of respondents are comes under 26-30 year age group, 11% of respondentsare between the age group of 31-35 years and the remaining 13% of respondents arebelong above 35 years of age group.
CHART:3.1 AGE OF THE RESPONDENTS NO.OF RESPONDENTS 40 35 30PERCENTAGE 25 20 15 10 5 0 s rs s s rs ar ar ar ea ea Ye Ye ye 0Y 5y 20 35 5 -2 -3 -3 w 20 26 31 e lo ov Be Ab AGE GROUP
TABLE: 3.2 GENDER OF THE RESPONDENTS S.NO GENDER NO.OF PERCENTAGE RESPONDENTS 1 Male 60 60 2 Female 40 40 Total 100 100INTERPRETATION The above table shows that 60% of respondents are male and 40% ofrespondents are female.
CHART: 3.2 GENDER OF THE RESPONDENTS 70 60 60 50PERCENTAGE 40 40 30 20 10 0 Male Female GENDER
TABLE: 3.3 MARITAL STATUS OF THE RESPONDENTSS.NO MARITAL NO.OF PERCENTAGE STATUS RESPONDENTS 1 Married 43 43 2 Unmarried 57 57 Total 100 100INTERPRETATION The above table shows that and 57% of respondents are unmarried.
TABLE:3.4 EDUCATIONAL QUALIFICATION OF THE RESPONDENTS S.NO EDUCATIONAL NO.OF RESPONDENTS PERCENTAGE % 1 School level 27 27 2 Diploma 28 28 3 U.G 15 15 4 P.G 30 30 Total 100 100INTERPRETATION The above table shows that 27%of respondents are school level, 28% ofrespondents are diploma holders,15%respondents are qualified at the level of undergraduates, and30%of respondents are educated as post graduates.
CHART: 3.3EDUCATIONAL QUALIFICATION OF THE RESPONDENTS 35 30 25percentage 20 15 10 5 0 l .G G ve a om P. U le l ol ip ho D Sc EDUCATIONAL
TABLE: 3.5 EXPERIENCE OF THE RESPONDENTS S.NO EXPERIENCE NO.OF PERCENTAGE RESPONDENTS 1 Below 5 years 35 35 2 5-10 years 25 25 3 11-15 years 15 15 10 4 16-20 years 10 5 15 15 Above 20 years Total 100 100INTERPRETATON The above table shows that 35% of respondents come under the category ofbelow 5 Years of experience level, 25%of respondents have experience between 5-10years, 15% of respondents have experience between 11-15years, 10% of respondentsare between 16-20, Years and 15% of respondents have experienced of above 20 years
CHART: 3.4 EXPERIENCE OF THE RESPONDENTS Below 5 35 years 30 5-10 years 25 20PERCENTAGE Above 20 11-15 years 15 years 16-20 years 10 5 0 1 EXPERIENCE
TABLE: 3.6 Monthly salary of the Respondents NO.OF S.NO SALARY RESPONDENTS PERCENTAGE 1 Below5000 21 21 2 5001-10,000 45 45 3 10001-15,000 14 14 4 15001-20000 11 11 5 Above 20,000 9 9 Total 100 100INTERPRETATION The above table shows that 21% of respondents are earning Below Rs5000 per month,45% of respondents are earning between Rs 5,001-10,000,14% ofrespondents have got Rs 10,001-15,000 per month 11% of respondents got Rs 15,001-20000 & 9% Respondents are got Above 20000.
TABLE: 3.7 LEVEL OF SATISFACTION BASED ON THEIR JOB S.NO RESPONSE NO.OF RESPONDENTS ERCENTAGE % 1 Highly satisfied 15 15 2 Satisfied 50 50 3 Neutral 29 29 4 Dissatisfied 3 3 5 Highly 3 3 Dissatisfied Total 100 100INTERPRETATION The above table shows that 15% of the respondents are highlysatisfied with their job, 50% of the respondents are satisfied with their job,29% of therespondents are neutral and 6 %of the respondents are dissatisfied and highly dissatisfiedwith their job .
percentage H ig hl y sa 0 10 20 30 40 50 60 tis fie d Sa tis fie d N eu CHART: 3.6 t ra l D issresponse at H is ig fie hl d y Di s sa tis fie d LEVEL OF SATISFACTION BASED ON THEIR JOB
TABLE: 3.8 WORKING CONDITION S.NO RESPONSE NO.OF RESPONDENTS PERCENTAGE % 1 Very good 12 12 2 Good 59 59 3 Average 20 20 4 Poor 6 6 5 Very poor 3 3 Total 100 100INTERPRETATION The above table shows that 12% of respondents opinion that their companyworking environment condition is very good, 59% of respondents opinion that theircompany working environment condition is good and 3% of respondents opinion is verypoor about the company working environment and conditions.
CHART: 3.7 WORKING CONDITIONS 70 60 50PERCENTAGE 40 30 20 10 0 od or e d or ag oo po Po go er G ry ry Av Ve Ve RESPONSE
TABLE: 3.9 KNOW ABOUT PERFORMANCE APPRAISAL SYSTEM NO.OF S.NO RESPONSE RESPONDENTS PERCENTAGE 1 Yes 80 80 2 No 20 20 Total 100 100INTERPRETATION The above table shows that 80% of respondents know about theperformance appraisal system and the remaining 20% respondents do not know about theperformance appraisal system.
CHART: 3.8 KNOW ABOUT PERFORMANCE APPRAISAL SYSTEM 80 70 60 50percentage 40 30 20 10 0 Yes No Response
TABLE: 3.10 NECESSITY OF PERFORMANCE APPRAISAL NO.OF PERCENTAGE S.NO RESPONSE RESPONDENTS 1 Yes 75 75 2 No 25 25 Total 100 100INTERPRETATION The above table shows that 75% of respondents accepted that theperformance appraisal system is necessary in their organization and the remaining 25%of respondents told that performance appraisal system is not necessary in organization.
TABLE:3.11 FREQUENCY OF PERFORMANCE APPRAISAL S.NO OPINION NO.OF RESPONDENTS PERCENTAGE % 1 Monthly 23 23 2 Quarterly 18 18 3 Half Yearly 39 39 4 Yearly 20 20 Total 100 100INTERPRETATION The above table shows that 23% of respondents give opinion thatperformance appraisal can be done monthly, 18% of respondents give opinion thatperformance appraisal can be done quarterly, 39%of respondents give opinion thatperformance appraisal can be done half yearly, and 20%of respondents give opinionthat performance appraisal can be done yearly
CHART: 3.9 FREQUENCY OF PERFORMANCE APPRAISAL 45 40 35 30percentage 25 20 15 10 5 0 ly rly ly ly ar th ar rte Ye on Ye ua M f Q al H opinion
TABLE: 3.12 ANY PERFORMANCE STANDARD FIXED NO.OF PERCENTAGE S.NO RESPONSE RESPONDENTS 1 Yes 13 13 2 No 87 87 Total 100 100INTERPRETATION The above table shows that 87% of respondents not accepted that theperformance standard fixed by organization and the remaining 13%of respondents toldthat performance accepting that the performance standard fixed .
TABLE: 3.13 ACTIONS TAKEN AFTER PERFORMANCE APPRAISAL TO IMPROVE PERFORMANCE S.NO MEASURES NO.OF RESPONDENTS PERCENTAGE % 1 T&D activities 23 23 2 Job rotation 35 35 3 Motivation 12 12 4 counseling 19 19 5 Others 11 11 Total 100 100INTERPRETATION The above table shows that 23% of respondents reported T&D activitiescan be taken by the company , 35% of respondents reported job rotation can be taken bythe company, 12% of respondents reported motivation can be taken by the company ,19%of respondents reported counseling can be taken by the company , 11% ofrespondents reported other measure can be taken by the company .
p e rc e n t a g e 0 5 10 15 20 25 30 35 40 T r a in in g a n d1 d e v e lo p m e n t a c tiv itie s2 J o b r o ta tio n3 CHART: 3.10 M o tiv a tio n Respondents4 c o u n s e lin g PERFORMANCE STANDARD MEASURES5 O th e r s
TABLE: 3.14 ATTAINMENT OF ORGANIZATION GOALS S.NO RESPONSE NO.OF RESPONDENTS PERCENTAGE % 1 Strongly agree 15 15 2 Agree 53 53 3 Neutral 25 25 4 Disagree 6 6 5 Strongly Disagree 1 1 Total 100 100INTERPRETATION The above table shows that 15% of the respondents strongly agree thatorganization goals are attained ,53% of respondents are also agree, 25% of therespondents gave neutral opinion and 7% of respondents with respectively Disagree andstrongly disagree that organization goals are not attained.
TABLE: 3.15 ATTENTION TO THE EMPLOYEE OPINION S.NO RESPONSE NO.OF RESPONDENTS PERCENTAGE % 1 Often 11 11 2 Frequently 18 18 3 Some times 27 27 4 Rarely 39 39 5 5 Never 5 Total 100 100INTERPRETATION The above table shows that11% of respondents opinion that the company oftengives attention to the employee opinion, 18%of respondents opinion that the companyfrequently gives attention to the employee opinion, 27% of respondents opinion that thecompany some times gives attention to the employee opinion 39% of respondents opinionthat the company rarely gives attention to the employee opinion and 5% of respondentssay that never gives attention to the employee opinion.
TABLE: 3.16 IMPROVEMENT OF EMPLOYEE PERFORMANCE & PRODUCTIVITY S.NO RESPONSE NO.OF RESPONDENTS PERCENTAGE % 1 Strongly agree 24 24 2 Agree 44 44 3 Neutral 72 72 4 Disagree 3 3 5 Strongly Disagree 2 2 Total 100 100INTERPRETATION The above table shows that 24% of the respondents strongly agree thatperformance & productivity can be improved after the appraisal 44% of respondents areagree that the employee performance & productivity can be improved after the appraisal,72%of the respondents neutral strongly agree that performance & productivity can beimproved after the appraisal , 3% of respondents are Disagree that the employee performance&productivity can be improved after the appraisal, and 2% also strongly disagree.
TABLE: 3.17 NEED FOR TRAINING PROGRAMS S.NO RESPONSE NO.OF RESPONDENTS PERCENTAGE % 1 Strongly agree 15 15 2 Agree 50 50 3 Neutral 29 29 4 Disagree 4 4 5 Strongly Disagree 2 2 Total 100 100INTERPRETATION The above table shows that 15% of respondents Strongly agree that they needfor training programs ,50% of respondents are agree that the training programs ,29% ofrespondents says that neutral that the need training programs 6% of respondents are Disagreeand Strongly Disagree about the training programs
TABLE: 3.18 APPRAISAL FOR GROUP S.NO DESCRIPTION NO.OF PERCENTAGE RESPONDENTS 1 Yes 59 59 2 No 41 41 Total 100 100INTERPRETATION The above table shows that 59% of respondent’s says that the appraisal canbe done for entire group and the remaining 41% of respondents are says that performanceappraisal can be done for individually.
TABLE: 3.19 SPECIFICATION OF RATING SYSTEM RESPONSE NO.OF RESPONDENTS PERCENTAGE % S.NO 1 Strongly agree 5 5 2 Agree 18 18 3 Neutral 39 39 4 Disagree 27 27 5 Strongly Disagree 11 11 Total 100 100INTERPRETATION The above table shows that 5% of respondents strongly agree that the ratingsystem should be very specific to their job, 18% of respondents agree that the ratingsystem should be very specific to their job and 39% Respondents says that neutral, 27%of respondents disagree that the rating system should be very specific to their job and11%of respondents strongly dis agree that the rating system should be very specific totheir job
TABLE: 3.20 FEED BACK FOR IMPROVING S.NO RESPONSE NO.OF PERCENTAGE RESPONDENTS Yes 66 66 2 No 34 34 Total 100 100INTERPRETATION The above table shows that 66% of respondents are agree that feed backwill help to improve the future performance and the remaining 34% of respondents arenot agree that feed back will help to improve the future performance.
TABLE:3.21 EXPECTATION OF VARIOUS BENEFITS ON POST APPRAISAL S.NO BENEFITS NO.OF RESPONDENTS PERCENTAGE % 1 Salary increment 23 23 2 Promotion 35 35 3 Incentives 12 12 4 Appreciation 19 19 5 Others 11 11 Total 100 100INTERPRETATION The above table shows that 23% of respondents expecting salary increment,35% of respondents expecting promotion , 12% of respondents expecting incentives 19%of respondents expecting Appreciation and 11% of respondents are expecting others.
CHART: 3.13 EXPECTATION OF VARIOUS BENEFITS 40 35 30PERCENTAGE 25 20 15 10 5 0 es t s n en n er io tio tiv m ot th cia n re om O ce c e in In Pr pr Ap ry la Sa BENEFITS
TABLE: 3.22 PERFORMANCE APPRAISAL INFLUENCING THE RESPONDENTS S.NO PARTICULARS NO.OF RESPONDENTS PERCENTAGE % 1 Attitude 3 3 2 Behavior 29 29 3 Performance 15 15 4 Productivity 3 3 5 All the Above 50 50 Total 100 100INTERPRETATION The above table shows that 3%of the respondents opinion thatperformance appraisal influencing attitude of the employee, 29% the respondents opinionthat performance appraisal influencing behavior of the employee, 15% the respondentsopinion that performance appraisal influencing performance of the employee, 3% therespondents opinion that performance appraisal influencing productivity 50% ofrespondents opinion that performance appraisal influencing all the factors.
TABLE: 3.23 AWARENESS ABOUT SELF APPRAISAL . S.NO Response NO.OF RESPONDENTS PERCENTAGE % 1 Full awareness 20 20 2 Partial awareness 64 64 3 Not at all 16 16 Total 100 100INTERPRETATION The above table shows that 20% of the respondents have full awarenessabout self appraisal ,64% of respondents have partially awareness about the selfappraisal and 16% of respondents opinion that they have no awareness about selfawareness ..
CHART: 3.14 AWARENESS ABOUT SELF APPRAISAL 70 60 50 40PERCENTAGE 30 20 10 0 Full Partial Not at all awareness awareness RESPONSE
CHI-SQUARE TESTChi-Square Test Formula: Where O - The observed frequency E - The expected frequencyExpected frequency formula E -Degree of freedom: (r – 1) (c – 1) Where r - Number of rows c - Number of columns
TABLE SHOWING SALARY AND JOB SATISFACTION USINGCHI-SQUARE TESTHYPOTHESIS: Null hypothesis (h0) There is no significance difference between the salary and job Satisfaction Alternative hypothesis (h1): There is significance difference between the salary and job SatisfactionTABLE: 1 Salary/job Highly Total Dissatisfied Highly satisfaction satisfied Satisfied Neutral Dissatisfied 7 3 10 0 1 Below5000 21 0 29 15 1 0 5001-10,000 45 3 10 0 1 010001-15,000 14 3 5 2 0 1 15001-20000 11Above 20,000 2 3 2 1 1 9 Total 15 50 29 3 3 100
Degree of freedom =(R-1) X(C-1) = (5-1) X (5-1) =16Level of significance =5%Calculated value =38.9198Tabulated value =26.20INTERPRETATION: Since the calculated value is greater than the table value, null hypothesis isrejected. Hence there is significant relationship exists between salary and job satisfaction.
TABLE SHOWING GENDER AND JOB SATISFACTION USINGCHI-SQUARE TESTHYPOTHESIS: Null hypothesis (h0) There is no significance difference between the gender and job Satisfaction Alternative hypothesis (h1): There is significance difference between the gender and job SatisfactionTABLE: 2Gender/job Highly Dissatisfied Highly Totalsatisfaction Satisfied Neutral satisfied Dissatisfied 10 35 14 0 1 60 Male 5 15 15 3 2 40 Female Total 15 50 29 3 3 100Formula:O= observed frequencyE= expected frequencyR=row totalC= column total
Degree of freedom =(R-1) X(C-1) = (2-1)X(5-1) =4Level of significance =5%Calculated value =9.41092Tabulated value =9.46INTERPRETATION: Since the calculated value is less than the table value, null hypothesis isaccepted. Hence there is no significant relationship exists between gender and jobsatisfaction.
TABLE SHOWING EDUCATION AND BENEFITS USINGCHI-SQUARE TESTHYPOTHESIS: Null hypothesis (h0) There is no significance difference between the education andbenefits Alternative hypothesis (h1): There is significance difference between the education and benefitsTABLE: 3EDUCATION Salary Promotion Incentives Appreciation Others Total / increment BENEFITS 6 3 3 4 27 School level 11 8 8 4 6 28 Diploma 2 10 0 5 0 15 U.G 0 11 1 7 1 30 P.G 10 Total 23 35 12 19 11 100
Degree of freedom =(R-1) X(C-1) = (5-1) X (4-1) =12Level of significance =5%Calculated value =37.12219Tabulated value =21.026INTERPRETATION: Since the calculated value is greater than the table value, null hypothesis isrejected. Hence there is significant relationship exists between education and benefits.
TABLE SHOWING EXPERIENCE AND BENEFITS USINGCHI-SQUARE TESTHYPOTHESIS: Null hypothesis (h0) There is no significance difference between the experience andbenefits Alternative hypothesis (h1): There is significance difference between the experience and benefitsTABLE: 4EXPERIENCE Salary Promotion Incentives Appreciation Others Total / increment BENEFITS 6 8 11 7 3 35 Below 5 years 5 9 1 5 5 25 5-10 years 4 5 0 5 1 15 11-15 years 1 7 0 1 1 10 16-20 years 7 6 0 1 1 15 Above 20 yearsTOTAL 23 35 12 19 11 100
Degree of freedom =(R-1) X(C-1) = (5-1) X (5-1) =16Level of significance =5%Calculated value =33.16926Tabulated value =26.20INTERPRETATION: Since the calculated value is greater than the table value, null hypothesis isrejected. Hence there is significant relationship exists between experience and benefits.
TABLE SHOWING AGE AND WORKING CONDITIONS USINGCHI-SQUARE TESTHYPOTHESIS: Null hypothesis (h0) There is no significance difference between age and workingconditions Alternative hypothesis (h1): There is significance difference between age and working conditionsTABLE: 5 AGE / VERY GOOD AVERAGE POOR VERY Total WORKING GOOD POORCONDITIONS 5 18 10 2 0 Below 20years 35 3 17 5 0 1 20-25years 26 2 11 2 0 0 26- 30Years 15 1 5 3 2 0 31-35 Years 11 1 8 0 2 2 Above 35 Years 13TOTAL 12 59 20 6 3 100
Degree of freedom =(R-1) X(C-1) = (5-1) X (5-1) =16Level of significance =5%Calculated value = 22.00581Tabulated value =26.20INTERPRETATION: Since the calculated value is less than the table value, null hypothesis isaccepted. Hence there is no significant relationship exists between age and workingconditions.
TABLE SHOWING AGE AND SALARY USINGCHI-SQUARE TESTHYPOTHESIS: Null hypothesis (h0) There is no significance difference between age and salary Alternative hypothesis (h1): There is significance difference between age and salaryTABLE: 6 15001- Above Below5000 5001- TotalAGE /SALARY 10001- 20000 20,000 10,000 15,000 15 5 6 9 0 Below 20years 35 5 18 2 1 0 20-25years 26 0 7 0 0 8 26- 30Years 15 1 9 1 0 0 31-35 Years 11 0 6 5 1 1 Above 35 Years 13TOTAL 21 45 14 11 9 100
Degree of freedom =(R-1) X(C-1) = (5-1) X (5-1) =16Level of significance =5%Calculated value = 87.86173Tabulated value =26.20INTERPRETATION: Since the calculated value is greater than the table value, null hypothesis isrejected. Hence there is significant relationship exists between age and salary.
CHAPTER-IV4.1 FINDINGSSimple percentage analysis Most (35%) of the respondents belong to below 20 years age group Majority (60%) of the respondents are male Most (43%) of the respondents are married Most (30%) of the respondents are educated as post graduates. Most (35%) of the respondents come under the category of below 5Years of experience level. Most (45%) of the respondents are earning between Rs 5,001-10000. Majority (50%) of the respondents are satisfied with their job. Majority (59%) of the respondent’s opinion that their company working environment condition is good Majority (80%) of the respondents know about the performance appraisal system Majority (75%) of the respondents accepted that the performance appraisal system is necessary in their organization Most (39%) of the respondents give opinion that performance appraisal can be done half yearly Majority (87%) of the respondents not accepted that the performance standard fixed by organization Most (35%) of the respondents reported job rotation can be taken by the company Majority (53%) of the respondents agree that the organizational goal are attained Most (39%) of the respondent’s opinion that the company rarely gives attention to the employee opinion. Majority (72%) of the respondents neutral strongly agree that performance & productivity can be improved after the appraisal.
Majority (50%) of the respondents are agree that the need for training programs.Majority (59%) of the respondent’s opinion that the appraisal can be done forentire team.Most (39%) of the respondents neutral, that the rating system should be veryspecific to their job.Majority (66%) of the respondents are agreeing that feed back will help toimprove the future performance.Most (35%) of the respondents expecting promotional activities.Most (29%) of the respondents opinion that performance appraisal influencingbehavior of the employee.Majority (64%) of the respondents have partially awareness about the selfappraisal.
4.2. RECOMMENDATIONS Company should evaluate the employee’s performance quarterly; when it would be more helpful to the employees to know their capabilities and capability. The organization should provide the various kinds of training to improve their strengths. Company should conduct training program if the employees appraised negatively. They should conduct on the job training. It is very useful to the employees to overcome their weakness and also it helps to increase productivity. Some of the respondents are not satisfied with the group appraisal system. So the organization should follow the individual appraisal system. Company should provide promotion opportunity and career development, when they are ranked highly. It helps to encourage the employees and also this is one of the ways to increase the employee performance Management should give equal importance to favorable and unfavorable aspects of performance while providing feedback. Management should give training programs after the performance appraisal For further improvement. Management should be consider of all the factors, there is majority of respondents are influencing in the performance appraisal. Management should give awareness about the performance appraisal to the employees in an organization.
4.3. CONCLUSION From the study it can be concluded that the HR policies practiced by “CHANDRURUBBER INDIA LIMITED” needs to be changed to a greater extend as the employeesare highly dissatisfied by the current system practiced by the organization. While theobjectives setting, counseling/ feedback is done in a scientific manner, many appraiseshave felt that it would be more useful if the appraisal from after completion of process isshown to them.The respondents expect total transparency / openness in the process however, it would bedifficult to institutionalize this process. Better awareness on the part of appraisers andimprovement in their counseling / feedback skills could pave way for bringing about thischange.
APPENDIX A STUDY ON PERFORMANCE APPRAISAL SYSTEM AT CHANDRU RUBBER FACTORY, MADURAI QUESTIONNAIRE1. Name :2. Designation :3. Age : a) Below 30 years b) 31-40 years c) 41-50years d) Above 50years4. Gender : a) Male b) Female5. Marital status: a) Married b) Unmarried6. Educational Qualification : a) School level b) Diploma c) UG Degree d) Post Graduate7. Years of experience: (a) Below 5 years (b) 5-10 years (c) 11-15 years (d) 16-20 years (e) Above 20 years8. Salary : a) Below Rs.5000 b) Rs.5001- Rs.10000 C) Rs.10001- Rs.15000 d) Above Rs.150009. Are you satisfied with your job? a) Highly satisfied [ ] b) Satisfied [ ] c) Neutral [ ] d) Highly Dissatisfied [ ] e) Dissatisfied [ ]10. What is your opinion regarding the working conditions? a)Very good b) Good c) Average d) Poor e) Very poor
11 Do you know about the performance appraisal system? a) Yes [ ] b) No [ ]12. Is performance appraisal necessary in your organization? a) Yes [ ] b) No [ ]13. According to your opinion how often performance appraisal can be done? a) Monthly [ ] b) Quarterly [ ] c) Half Yearly [ ] d) Yearly [ ]14. Is there any performance standard fixed by the company? a) Yes [ ] b) No [ ]15. If your performance is not up to the standard, what kind of actions does the company? a) Training and development activities [ ] b) Job rotation [ ] c) Motivation [ ] d) Others16. Whether you have attained the organizational goals that are expected from the Management and your supervisor? a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly Disagree17. Does the company give any attention to the employee opinion? a)Often b) Frequently c) Some times d)Rarely e) Never18. Do you agree that the employee performance & productivity can be improved after the Appraisal? a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly Disagree19.Do you need training programs after performance appraisal for further improvement? a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly Disagree20. Should appraisal be done for group and individual. a) Yes b) No
21. Do you agree that the rating system should be very specific to your job? a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly Disagree23. Do you agree that the feed back helps to improve your future performance? a) yes b)No24. What are the benefits you expect after the performance appraisal? a) promotion b) incentives c) career development d) recognition e) others25. How does performance appraisal influence the employee? a) Attitude [ ] b) Behavior [ ] c) Performance [ ] d) Productivity [ ] e) All the Above [ ]26. To what extent do you have awareness about self appraisal process? a) Fully awareness b) Partial awareness c) Not at all27 Give your valuable suggestion regarding the necessity of Performance Appraisal System in your organization.………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
BIBLIOGRAPHY“Personnel Today” National Institute of Personnel Management Newsletter,October – December 1996.HRD News Letter, Mar-June 1989 of Indian Journal for Training &Development.D H Kothari “Research Methodlogy”Martin Fisher “Performance appraisal” printed by “ The Sunday kogan pageltd , London.“ Performance appraisal”, Harward Business Review (HBR) classic