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    22009663 performance-appraisal-project-report 22009663 performance-appraisal-project-report Document Transcript

    • Visit hrmba.blogspot.com for more project reports, notes etc. CHAPTER 1 a. Human Resources Management A Theoretical framework The Human Resources Management (HRM) function includes avariety of activities, and key among them is deciding what staffingneeds you have and whether to use independent contractors or hireemployees to fill these needs, recruiting and training the bestemployees, ensuring they are high performers, dealing withperformance issues, and ensuring your personnel and managementpractices conform to various regulations. Activities also includemanaging your approach to employee benefits and compensation,employee records and personnel policies. Usually small businesses(for-profit or nonprofit) have to carry out these activities themselvesbecause they cant yet afford part- or full-time help. However, theyshould always ensure that employees have -- and are aware of --personnel policies which conform to current regulations. These policiesare often in the form of employee manuals, which all employees have. Note that some people distinguish a difference between HRM (amajor management activity) and HRD (Human Resource Development,a profession). Those people might include HRM in HRD, explaining thatHRD includes the broader range of activities to develop personnel 1
    • inside of organizations, including, e.g., career development, training,organization development, etc. There is a long-standing argument about where HR-relatedfunctions should be organized into large organizations, e.g., "should HRbe in the Organization Development department or the other wayaround?" The HRM function and HRD profession have undergonetremendous change over the past 20-30 years. Many years ago, largeorganizations looked to the "Personnel Department," mostly to managethe paperwork around hiring and paying people. More recently,organizations consider the "HR Department" as playing a major role instaffing, training and helping to manage people so that people and theorganization are performing at maximum capability in a highly fulfillingmanner. After you have invested considerable time and money recruitingand training your employees, you must now determine how to makesure those valuable employees are productive and get them to remainloyal to your firm. Retention of employees is essential to maintainclient relationships and keep recruiting and training costs in line.Losing an experienced employee almost always results in significantcosts to your firm. The keys to employee satisfaction and retention arefounded on strong leadership and sound management practices. If youcan master these arts, you should have happy, loyal employees andclients, resulting in growth, profits and personal gratification. Thisarticle will discuss key factors in motivating and retaining good people.Operating Systems 2
    • The foundation of an efficient and effective workplace is thestructure, discipline and consistency provided by well-conceivedsystematic operating methods. World-class companies like Disney,McDonalds and Ritz Carleton all have well defined operating methods.A policies and procedures (P&P) manual is critical to ensure thatemployees understand what is expected of them and know how theyshould handle the myriad of duties and responsibilities in the day-to-day operation of the office. The P&P manual spells out how you wouldlike things done in your office and your expectations for the behaviorof your employees. As your operation grows larger, the systembecomes more important because your ability to oversee andcommunicate directly and frequently with each employee becomesmore difficult. Written operating systems are absolutely essential whenyou expand to more than one office location.Training Pre-work training should include a review of your policies andprocedures, with special emphasis on the most important subjects.(Each employee should receive a personal copy of your P&P Manual toread before coming to the training class.) In addition to training in yourpolicies and procedures, customer service and marketing should becovered at length. Special emphasis should be placed on yourcorporate culture. New employees need more training than priors, butall employees should receive training each year. New employeesshould also have several days of on-the-job training with the officemanager or experienced employees before beginning their position;and they should not be left on their own in the office until they areexperienced enough to feel confident. Many of the frustrationsemployees feel on the job--as well as most errors and client problems--are due to inadequate training. Comprehensive training will make your 3
    • life as a manager much easier, and your employees and clients will behappier.Tool Employee costs constitute the greatest expense in any servicebusiness. Not giving your employees adequate tools to do the job ispenny wise and pound foolish. Computers need not be state-of-the-art,but they do need to be fast and reliable enough to minimize down timeand reduce employee and client frustration. If your office is notoperating with a Local Area Network (LAN), you should set one upwithout delay. A LAN manages printer sharing and centralizes clientfiles for easy computer cross-checking, e-filing., and report writing.Copiers should be reliable and fast, with automatic feed, and amplesupplies always on hand. A fax is no longer a costly luxury for mostoffices, but a necessity. Internet access is almost as important as thephone for effective communication and is becoming more essential forresearch. Dont forget to provide the little things, like reliable staplers,staple removers, scissors, pens, post-its, business card holders, etc. Anappointment book, a Rolodex (or software address book), andreference books and resources should also be provided. Comfortable,functional office furniture and adequate shelving and storage are alsoessential. Dont forget aids for employees with special needs, such asunder-desk computer drawers and keyboard & mouse cushions. At 4
    • Peoples Income Tax, we use checklists of office furnishings, equipmentand supplies used to take inventory and request missing or shortageitems. Attention to detail and providing adequate tools to do the jobwill eliminate a key source of employee frustration and increaseemployee productivity and satisfaction.Office atmosphere How your employees feel about their jobs is greatly influenced byyour office atmosphere. Extravagance is not necessary, but the officeshould be attractively decorated and a pleasant place to work. Littlethings like a fresh coat of paint and a wallpaper border make a bigdifference. A stereo (with ceiling speakers) tuned to a soft neutralmusic enhances the office atmosphere and creates an illusion ofprivacy. Don’t neglect the back room and the rest room. We pay asmuch attention to decorating and appointing our rest rooms as we doour client reception areas. We also provide a microwave andrefrigerator for the back room of every office and, space permitting, atable and chairs where our associates can eat. The impression youmake on your employees is just as important as the image you projectto your clients. Keeping the office clean and uncluttered requires thecooperation of all employees, and you should insist that everyemployee pitches in to help. However, you should regularly hirecontractors for heavy cleaning (e.g., carpet, windows and restroom).Your employees’ attitudes are affected by their physical workenvironment; make sure it is positive!Support Your employees will appreciate having adequate support. Theyneed someone readily available to help when they have questions orencounter problems. Support can be provided on-site by an office 5
    • manager or veteran employee or by telephone or e-mail when on-sitehelp is not available. Having adequate help to properly serve all clientsin the office is also essential for employee morale. The important pointis that your people should not feel like they are out there on their ownwith no one to turn to when they need help. If they feel this way, theymight as well go into business on their own.Corporate Culture World-class companies always have in common World-classcultures. Leaders of such businesses recognize that their companiesexist to satisfy a social need. Profits are not the goal, but are abyproduct of meeting the needs of customers and employees.Businesses also have a responsibility to give back to the communitiesin which they operate. Most employees also have a need to makemeaningful contributions to society through their work. They also liketo take pride in their work and deliver quality products and services.And they need to continue to learn and grow professionally. A goodcorporate culture enables employees to combine their strengths tomeet these mutual needs as part of a dynamic team.Your company’s culture starts with your company’s mission andvalues, which should be well thought-out and articulated in writing. Amission statement and set of guiding principles is typically developedby the company’s owner or CEO to reflect his or her businessphilosophy. Input should also be solicited from key employees. Themission statement and guiding principles of Peoples Income Tax isprovided as an example (Exhibit 2). When hiring new employees, it isessential to confirm their understanding of and agreement with yourcompany philosophy. Your values must not merely be lip service, butshould be internalized and practiced daily by all employees. As theowner or CEO, you must set the standard for your people. 6
    • Compensation A performance-based compensation plan should be designed toencourage your employees to behave in ways that will result inattainment of the goals of your Company, while also meeting youremployees’ personal objectives. Company goals usually includegrowth, profitability, quality service, efficiency, effectiveness, andimage and reputation. To attract desirable employees, your base payand earnings potential should be competitive within your industry(equal to or better than your main competitors for employees). Thepay plan must be objective and fair to all employees. Rewards shouldbe commensurate with contributions. The behaviors and attitude yourpay plan should encourage include honesty, professional pride,continuing professional education, loyalty, thoroughness, accuracy,efficiency, teamwork, salesmanship, courtesy, concern for clients, self-direction, frugality and long-term thinking. Peoples’ compensationplan, devised with these factors in mind, includes a competitiveguaranteed wage as a draw against commissions for individual andoffice production. Additional commissions are paid for experience,helping to generate office revenue growth, and attaining andmaintaining professional. Establishing a sound compensation plan isone of the most important projects you will undertake. Once the plan isestablished, it is difficult to make radical changes. Your compensationplan is an essential element of your ability to compete effectively.Benefits Providing whatever benefits you can put you in a bettercompetitive position to attract and retain seasonal employees. A profitsharing plan could be adopted for all employees to share in the profitpool in proportion to their annual earnings relative to total earnings of 7
    • all employees. The profit pool could be some percentage (e.g. 10-20%as determined by management) of the increase in pretax profits overthe prior year. Peoples Income Tax has a Fidelity 401k plan through itsmembership with the U.S. Chamber of Commerce that permits all year-round and seasonal employees to participate, and the company makes3% contributions. Some of Peoples’ seasonal tax associates who work part-timeduring the off-season providing client service and teaching an incometax school work enough hours to qualify for the company’s grouphealth insurance plan. Group life and disability insurance and otherbenefits can be obtained through professional associations. Even if theemployee pays the full premium, group rates tend to be lower thanindividual coverage. Group discounts for products and services areoften extended to employees through professional associations andcompany membership in the local Chamber of Commerce. PeoplesIncome Tax, as a small employer, was able to become a member of theVirginia Credit Union, making all of Peoples’ employees eligible for thebenefits of credit union membership. Peoples also provides paid timeoff for its associates to volunteer for company approved charitableactivities such as providing free tax service for welfare-to-workprogram participants and residents of homeless and battered womenshelters. Be creative. Little perks, like buying pizza for the staff of theoffice on the busiest days of the work week, help to make youremployees appreciate their jobs. Be creative!Recognition Numerous studies and surveys have documented the fact thatmoney is not always the primary motivator for most employees.Recognize your people frequently for their good work and they willrepeat the performance frequently. Praise must be sincere and should 8
    • be distributed equitably, if warranted. When possible, praise peoplepublicly in meetings or employee newsletters. Be sure to give peoplecredit and rewards for good ideas they come up with that benefit thecompany. Reinforce the right behaviors. Avoid saying “Great but.”Look for key measures to recognize employees, such as production,client retention rate, etc. Come up with contests to recognize youremployees, such as the most referrals for another service you offer, orthe most new clients brought in. Give recognition certificates, plaquesand prizes and other than money, such as tickets for movie rental orsports events, or gift certificates for merchandise or dinner. Givingsomething tangible makes a more lasting impression. Praising yourbest performers (the top 10-20%) will raise the bar for your weakerpeople. The goal is to encourage behaviors that build your businessand recognize your people for practicing those behaviors as often aspossible.Communication Lack of effective communication from management is usually thegreatest cause for employee dissatisfaction and premature departure.The best managers listen to and communication frequently with allemployees; and they make it easy for employees to tell them aboutproblems and concerns. Communication should include training, groupand individual meetings and, most important, daily discussionsbetween you and your employees. The larger your organizationbecomes, the more difficult it is to keep in touch with all of youremployees, especially if you have multiple offices. Yet, as themanager, you must make the time to regularly talk with everyone. E-mail is a good communication vehicle, but the phone is more personal;and neither can replace face-to-face meetings. Publishing employeenewsletters is a good way for larger organizations to enhance 9
    • communication. An Intranet can also be an effective internalcommunication vehicle. Keep communication simple, provide adequateinformation and provide examples for clarity. Show your trust in yourpeople and make them feel included by sharing with them financialand other company inside information. Management can make muchbetter decisions by getting input from front-line employees. If yourpeople know that their voices are heard and they feel like they are partof the decision making process, they will be much happier, loyal andmore likely to support new ideas and programs.Empowerment Engage your employees in decision-making; give them theauthority to act in the best interests of the company. Provide trainingin resolving client problems and then trust them to make the rightdecisions. Give your people some time to think and plan by building insome slack through adequate staffing and by providing clericalsupport. Don’t criticize employee’ mistakes; instead celebrate honestmistakes. Recognize that making decisions naturally results in makingmistakes because no one is perfect. If you criticize honest mistakes,your people will stop making decisions. Failure is also OK, because it isa normal part of the road to success. Nothing is more gratifying than tosee your people develop the skills and confidence to act independentlyand to make sound decisions that are in the best interests of thecompany and your clients.Leadership Much has been written about leadership and you should take thetime whenever the opportunity arises to read ideas on how to be a 10
    • more effective leader. Here are ten basic keys: (1) Integrity: always tellthe truth and always keep your promise, even if it hurts to do so. (2)Trust: You must first demonstrate your trust in people by makingyourself vulnerable before you can expect them to place their trust inyou. (3) Respect: If you really don’t care about your people they willsense your lack of concern and will not have respect for you. (4)Fairness: Treat all employees fairly and equally (including familymembers) regardless of your personal feelings. (5) Vision: To be a trueleader, you must have an unfaltering vision, be able to communicate itto your people, and get them to understand and share in yourexcitement for the vision. (6) Optimism: You must always be positiveand confident that the company will succeed; but you should also berealistic. (7) Decisive: A leader must make decisions and stick withthem as long as they make sense. Consensus is not always better thanan individual decision, particularly in a crisis situation. Remember, thebuck stops with you! Trust your intuition. Intuition draws upon yourexperience, stored knowledge and information you may not evenrealize you have in your head. (8) Example: You must practice whatyou preach or you will have little credibility. (9) Teamwork: Insist onmutual respect, courtesy and cooperation among your people. Thisfundamental attitude was crucial in shaping our nation and is alsoessential to build your company. (10) Authority: Remember thatauthority is not vested in your position as the boss. Authority resideswith the people who report to you and they have the power grant it toyou or not.Having Fun 11
    • People like to work in an environment that is enjoyable; they canget burned out if the work environment is totally serious and strictlybusiness. Great companies like Southwest Airlines have come up withcreative ways for employees to have fun. I think every manager shouldread the bestseller book, NUTS!, By Southwest chairman, HerbKelleher. If you’re not naturally good at getting people to have fun,designate a key employee to assume this role. A friend, HughGoldthorpe, who is a top executive with Owens and Minor of Richmond,Virginia, has adopted (and had printed on his business cards) hisofficial job title as: Head Cheerleader. Motivating and keeping employees requires effectivemanagement practices and strong leadership skills. A good operatingsystem and adequate training are essential. Your people need theproper tools and support to do the job. A performance-basedcompensation plan should be designed very carefully to ensure thatyour employees are encouraged to help build the business and arerewarded for their contributions, and provide as many extra benefits aspossible. Screening new employment prospects to insure they fit inand buy into your culture will prevent future problems. Employmentagreements are a must and should be reviewed by and explained tonew hires. A valuable project is to identify the 2-3 greatest frustrationsof your employees and your clients and devise ways to eliminate theseirritations. Employees should be trusted, included and empowered tomake decisions and act autonomously. They also need to be part of aharmonious team working for the mutual benefit of the clients, thecompany and themselves. And they would enjoy being at a fun placeto work! Ultimately, your management and leadership skills and effortswill determine your success in providing an atmosphere where youremployees will be motivated to be effective and will remain loyal toyour company. 12
    • b. Concepts Related to Performance Appraisal SystemTALENT MANAGEMENT Talent management is a professional term that gained popularityin the late 1990s. It refers to the process of developing and fosteringnew workers through on boarding, developing and keeping currentworkers and attracting highly skilled workers at other companies tocome work for your company. Talent management in this context doesnot refer to the management of entertainers. Companies that are engaged in talent management (humancapital management) are strategic and deliberate in how they source,attract, select, train, develop, promote, and move employees throughthe organization. This term also incorporates how companies driveperformance at the individual level (performance management). The term talent management means different things to differentpeople. To some it is about the management of high-worth individualsor “the talented” whilst to others it is about how talent is managedgenerally – i.e. on the assumption that all people have talent whichshould be identified and liberated. This term is usually associated with competency-based humanresource management practices. Talent management decisions areoften driven by a set of organizational core competencies as well asposition-specific competencies. The competency set may includeknowledge, skills, experience, and personal traits (demonstratedthrough defined behaviors). 13
    • Older competency models might also contain attributes thatrarely predict success (e.g. education, tenure, and diversity factorsthat are illegal to consider in many countries).In the late 1990s, technology companies engaged in a ‘war for talent’.Objectives: • To identify, nurture, groom and motivate talented MCS (management carder staff). • Career and succession planning to build in-house pool of talent (grow your own timber) for our future needs of HOD’s and GM‘s. • Determine talent strength (numbers) and quality (competencies), future requirements and ideal “organizational structure”, identify gaps and take actions.Competitive advantage: • Embrace a talent mindset. • Craft a winning employee value proposition. • Rebuild your recruiting strategy. • Weave development into your organization. • Differentiate and affirm your people.Limitations: • Retention rates in marketing are a problem. It was suggested to consider the leadership issues, careful selection, increased motivation and performance incentives.EMPLOYEE INVOLVEMENT 14
    • Definition: Employee involvement is creating an environment inwhich people have an impact on decisions and actions that affect theirjobs. Employee involvement is not the goal nor is it a tool, as practicedin many organizations. Rather, it is a management and leadershipphilosophy about how people are most enabled to contribute tocontinuous improvement and the ongoing success of their workorganization. My bias, from working with people for 40+ years, is to involvepeople as much as possible in all aspects of work decisions andplanning. This involvement increases ownership and commitment,retains your best employees, and fosters an environment in whichpeople choose to be motivated and contributing. How to involve employees in decisionmaking and continuousimprovement activities is the strategic aspect of involvement and caninclude such methods as suggestion systems, manufacturing cells,work teams, continuous improvement meetings, Kaizen (continuousimprovement) events, corrective action processes, and periodicdiscussions with the supervisor. Intrinsic to most employee involvement processes is training inteam effectiveness, communication, and problem solving; thedevelopment of reward and recognition systems; and frequently, thesharing of gains made through employee involvement efforts. 15
    • Employee Involvement Model For people and organizations who desire a model to apply, the bestI have discovered was developed from work by Tannenbaum andSchmidt (1958) and Sadler (1970). • Tell: the supervisor makes the decision and announces it to staff. The supervisor provides complete direction. • Sell: the supervisor makes the decision and then attempts to gain commitment from staff by “selling” the positive aspects of the decision. • Consult: the supervisor invites input into a decision while retaining authority to make the final decision herself. • Join: the supervisor invites employees to make the decision with the supervisor. The supervisor considers her voice equal in the decision process.To round out the model, I add the following:Delegate: The supervisor turns the decision over to another party.Employee involvement consists of those practices which are initiatedprincipally by management and are designed to increase the employeeinformation about, and commitment to the organization fostering trust.Involvement assumes recognition that employees have great untappedpotential which can be used to the organizations advantage bysecuring commitment of the employees to the success of theorganization. 16
    • The action plan: Employee involvement focus in on correcting the balancetowards an employee contributing also his brain powers in terms ofideas and initiative for improvement in the areas of his work/ hisresponsibilities and not only his brains. The concept is application toworkers, staffs and managers alike.Objective: • Helping employees to contribute better on their jobs. • Faster and higher quality of problem resolution. • Companies gaining better competitive edge. • Employees gaining greater job satisfaction, joy and pride in work. • Employees displaying greater identification with changes in policies, practices, systems, structures and work methods.INDUSTRIAL RELATIONS The term industrial relation in practice has come to meanprimarily the relations between the management and the unions in anindustrial enterprise. It ought to include “employee relations”,irrespective of whether a union exists in a particular unit or not. We all know that unions came into being, since for ages anindividual employee has tented to be exploited by the employer. To besure, most of us in India are even today partners in this process ofexploitation. The reference is to the institution of domestic servants,whether we look at their wages, at their working hours or their healthcare and so on. 17
    • The same is by and large for labors employed on constructionprojects or on farms. It must therefore be accepted that the tradeunions does serve a social purpose through the practice of collectivebargaining. It never pays to delay or postpone a constructive confrontationto demand performance be it in the volume or quality of the output.Law and penalties Legislation, acts, regulations, standards, codes of practice,prosecutions, enforceable undertakings, fines, improvement andprohibition noticesRights and obligations Your rights as a consumer, worker, employer, manufacturer,WHSO; manage your risks; meet your obligationsWorkplace incidents and inspections Notify of an incident, in an emergency, inspections, inspectors’role, workers’ compensationTraining, licenses and registrations Accreditation, training providers, tickets, licenses, plantregistrations, seminars, educational tools, apprenticeships andtraineeshipsWorkers’ compensation and rehabilitation Workers’ compensation and rehabilitation legislation, rights andobligations, other jurisdictions, claiming workers’ compensation andrehabilitationPublications and forms 18
    • Reports, research, newsletters, submissions, conference papers,codes and standards, forms, blitzes, audits, subject index A-ZMENTORING More than ever before, organizations, large and small, are lookingoutside traditional mentoring paradigms to raise the bar on thepractice of mentoring by creating a mentoring culture. A mentoring culture continuously focuses on building the mentoringcapacity, competence, and capability of the organization. A mentoringculture encourages the practice of mentoring excellence bycontinuously:• creating readiness for mentoring within the organization,• facilitating multiple mentoring opportunities, and• Building in support mechanisms to ensure individual and organizational mentoring success. In a mentoring culture, eight hallmarks build on and strengtheneach other. All are present, at least to some degree; however theymanifest themselves differently depending on the organization’sprevious success with mentoring.The Eight Hallmarks of a Mentoring Culture• Accountability. Accountability enhances performance and produces long-lasting results. It requires shared intention, responsibility and 19
    • ownership, a commitment to action and consistency of practice. Accountability also involves very specific tasks: --setting goals, --clarifying expectations, --defining roles and responsibilities, --monitoring progress and measuring results, --gathering feedback, and --formulating action goals.• Alignment. Alignment focuses on the consistency of mentoring practices within an institution’s culture. It builds on the assumption that a cultural fit already exists between mentoring and the organization and that mentoring initiatives are also are tied to goals larger than just initiating a program. When mentoring is aligned within the culture, it is part of its DNA. A shared understanding and vocabulary of mentoring practice exists that fits naturally with the organization’s values, practices, mission, and goals.• Communication. Communication is fundamental to achieving mentoring excellence and positive mentoring results. Its effects are far-reaching; it increases trust, strengthens relationships, and helps align organizations. It creates value, visibility and demand for mentoring. It is also the catalyst for developing mentoring readiness, generating learning opportunities, and providing mentoring support within an organization.• Value and Visibility. Sharing personal mentoring stories, role modeling, reward, recognition, and celebration are high leverage activities that create and sustain value and visibility. Leaders who talk about formative mentoring experience, share best practices, and promote and support mentoring by their own example add to the value proposition for mentoring. 20
    • COMMUNICATION Communication is one of the toughest issues in organizations.Effective communication requires four components interworkingperfectly for “shared meaning,” my favorite definition ofcommunication.• The individual sending the message must present the message clearly and in detail, and radiate integrity and authenticity.• The person receiving the message must decide to listen, ask questions for clarity, and trust the sender of the message.• The delivery method chosen must suit the circumstances and the needs of both the sender and the receiver.• The content of the message has to resonate and connect, on some level, with the already-held beliefs of the receiver.With all of this going on in a communication, I think it’s a wonder thatorganizations ever do it well.Change management practitioners have provided a broad range ofsuggestions about how to communicate well during any organizationalchanges.LEADERSHIP AND MANAGEMENT Leaders of organizations, especially people with high level titlesand ownership positions, establish and maintain the level of comfortthat other employees experience when they are asked to speak up. Inmost organizations, the willingness of employees, even managers, tospeak up in disagreement with the higher level person is appallinglybad. Why is this so? Is it because people lack personal and professional 21
    • courage at work? Or, are they too beholden to these executives fortheir job? In any case, it is the leader who establishes the tone and thework environment in which people chooses – or chooses not – toexercise personal courage and freedom of expression. If the leader hastraditionally proved to be genuinely open to comments and criticism,people are willing to agree, disagree, and express opinions. The good leader, who wants to take advantage of theexperience, knowledge, and thoughtfulness of talented staff,remembers this. The good leader is aware of their power to encourageor stifle opinions and debate. They use this power to genuinelyappreciate and encourage input, debate, and differing opinions.JOB DESCRIPTION Effectively developed, job descriptions are communication toolsthat are significant in your organization’s success. Poorly written jobdescriptions, on the other hand, add to workplace confusion, hurtcommunication, and make people feel as if they don’t know what isexpected from them. Job descriptions are written statements that describe the duties,responsibilities, required qualifications, and reporting relationships of aparticular job. Job descriptions are based on objective informationobtained through job analysis, an understanding of the competenciesand skills required to accomplish needed tasks, and the needs of theorganization to produce work. Job descriptions clearly identify and spell out the responsibilitiesof a specific job. Job descriptions also include information about 22
    • working conditions, tools; equipment used knowledge and skillsneeded, and relationships with other positions. Still uncertain about the value of job descriptions? Considerthese tips about employee job descriptions.Positives about Job Descriptions Job descriptions provide an opportunity to clearly communicateyour company direction and they tell the employee where he or shefits inside of the big picture. Whether you’re a small business or a large, multi-siteorganization, well-written job descriptions will help you align employeedirection. Alignment of the people you employ with your goals, vision, andmission spells success for your organization. As a leader, you assurethe interfunctioning of all the different positions and roles needed toget the job done for the customer. Job descriptions set clear expectations for what you expect frompeople.According to Ferdinand Fournies in Why Don’t Employees Do WhatThey’re Supposed to Do and What to Do about It, this is the firstplace to look if people aren’t doing what you want them to do. He saysyou need to make certain that they clearly understand yourexpectations. This understanding starts with the job description. Job descriptions help you cover all your legal bases. Whether you’re recruiting new employees or posting jobs forinternal applicants, job descriptions tell the candidate exactly what youwant in your selected person. 23
    • Clear job descriptions can help you select your preferredcandidates and address the issues and questions of those people whowere not selected. Well-written job descriptions help organization employees, whomust work with the person hired, understand the boundaries of theperson’s responsibilities. People who have been involved in the hiring process are morelikely to support the success of the new employee or promotedcoworker. Developing job descriptions is an easy way to involve peoplein your organization’s success c. Review of literature• Fletcher C, Performance appraisal and management, November 4, 2001: Performance appraisal has widened as a concept and as a set of practices and in the form of performance management has become part of a more strategic approach to integrating HR activities and business policies. As a result of this, the research on the subject has moved beyond the limited confines of measurement issues and accuracy of performance ratings and has begun to focus more of social and motivational aspects of appraisal. This article identifies and discusses a number of themes and trends that together make up the developing research agenda for this field. It breaks these down in terms of the nature of appraisal and the context in which it operates. The former is considered in terms of contemporary thinking on the content of appraisal (contextual performance, goal orientation and self awareness) and the process of appraisal (appraiser–appraisee interaction, and multi-source feedback). The discussion of the 24
    • context of appraisal concentrates on cultural differences and the impact of new technology.• Gregory H. Dobbins, Performance Appraisal as Effective Management or Deadly Management Disease, 1990: Understanding person and system sources of work variation is fundamental to performance appraisal. Two divergent perspectives on this issue, the traditional human resource management view and the statistical process control view (Deming, 1986), are contrasted. Two studies are reported that investigate two specific questions that arise from a broader view of the appraisal process. Results indicate that managers and subordinates believe that typical poor performance has different causes and that actual productivity levels far outweigh person or system sources of performance variance in appraisal judgments.• Gregory H. Dobbins, A Contingency Approach to Appraisal Satisfaction, 1990: The present study explored the moderating effects of organizational variables on the appraisal characteristic- appraisal satisfaction relationship. Analyses indicated that the appraisal characteristics of action plans, frequency, and rater training were more positively related to appraisal satisfaction when subordinates experienced role conflict, were not closely monitored, and supervisors had a large span of control. The results provide substantial support for conceptualizing appraisal satisfaction as a contingent function of both appraisal characteristics and organizational variables. Implications of the findings for the design of appraisal systems, appraisal effectiveness, and future research are discussed. 25
    • • Taylor Cox, Differential Performance Appraisal Criteria, 1986 : Performance appraisal ratings of 125 first-level managers were analyzed to investigate the degree to which the criteria used to evaluate the overall job performance of black managers differs from that used to evaluate white managers. The performance appraisal form included items that measured both the social behavior dimen sion and task/goal accomplishment dimension of job performance. The appraisal ratings of both groups on each dimension were correlated with measures of overall job performance and promot ability. Results indicated that social behavior factors are more highly correlated with the overall job performance of black ratees than for white ratees. Implications of these results for both black managers and organizations are discussed.• David A. Waldman, Predictors of Employee Preferences for Multirater and Group-Based Performance Appraisal, 1997: This study conceptualizes and measures user preferences for 360- degree appraisals and group-level performance management (PM). Users are defined as either recipients of PM processes or those whose job it is to administer the process. Aspects of individual users, their work design, and current appraisal context were used to predict preferences. Two studies were conducted involving data collection in a large Canadian telecommunications conglomerate and a department of the Canadian government, respectively. Predictors explained significant amounts of variance in user 26
    • preferences, especially those pertaining to group-level PM. Practical implications are suggested with regard to collecting and using user preferences. In addition, suggestions for future research are offered concerning the need to examine a broad range of users in different organizational settings and to measure actual system design features and their effectiveness. • Dennis W. Organ, A Restatement of the Satisfaction- Performance Hypothesis, 1988: This article reviews recent evidence in support of Organ’s (1977) argument that satisfaction more generally correlates with organizational prosocial or citizenship-type behaviors than with traditional productivity or in- role performance. An attempt is then made to interpret just what it is in satisfaction measures that provides this correlation, leading to the suggestion that fairness cognitions comprise the major factor. Implications of this interpretation for theory, research, and management practice are offered. CHAPTER 2 METHODOLOGYNeed of the study: The study concentrates on the HR affairs of the company. Itinvolves the study of performance standards of the employees of JKPaper Mills. 27
    • This study has been carried out in order to learn the PerformanceAppraisal System of JK Paper Mills Pvt. Ltd; to know what strategies arebeing implied and how far they are effective.Objectives of the study: • To analyze and apply performance appraisal strategies to improve the performance of the individual employees. • To know about the requirements of the employees. • To know the best performance appraisal strategy of the company. • Improve the performance of the employees and there by improving the overall performance of the company, by providing suggestions if any. • To verify the standard of JK Paper Mills when compared to other paper industries present in the market.Scope of study: It is a systematic procedure of collecting information in order toanalyze and verify a phenomenon. The collection of information has been done through two majorsources: 1. Primary Data. 2. Secondary Data.Primary Data: It is the information collected directly without anyreference. In this study, it is gathered through interviews withvarious employees, human resource officers and other concerned 28
    • people. Some of the information were verified and supplementedthrough personal observation.Secondary Data: The Secondary data was collected from alreadypublished sources such as pamphlets, annual reports, variousjournals and internal records. The data collection includes:• Collection of required data from annual report of JK. PapersLtd.• Reference from textbooks and journals relating to the paperindustry in India.• Annual reports of the company.Presentation of the study: Chapter I: This chapter deals with the history and the global prospective of the Paper industry. It also tells us about the other important world markets for paper and the future prospects in these markets. It also tells us about the various concepts that are related to performance appraisal strategies. Chapter II: This chapter deals with the methodology of the study along with the needs, objectives and limitations of the study. This chapter also deals with how the survey was carried out by taking the primary data and the secondary data, 29
    • that is by carrying out a survey and also taking the findings of other surveys and documents into account. It talks about the need and objective of the study that is to find out how the company is faring in regard to its performance. It also finds out the limitations that I encountered during the period of study. Chapter III: This chapter deals with the profile of the company. It gives a brief history of the company. It goes on to talk about the progress and also the innovations and technological progress that the company has excelled in papers over the years. It tells us about the quality legacy of the company, in the end it talks about the unique performance appraisal strategy of the company and a few of the products that the company sells. Chapter IV: This chapter deals with the analysis of the survey that I had conducted during the period of my study. The survey tries to find out various aspects like the satisfaction of the employees, performance of the employees, awareness in the organization, performance appraisal strategies used by the company and various other aspects. Chapter V: This chapter includes the summary of the project. It also includes my findings and suggestions and conclusions during my project period.Limitations of the study: • The study is focused on a very general level rather than a full scale detailed report. 30
    • • The study does not get information from an in depth prospective.• The study is not necessarily the solution to the problem that exists.• There were a lot of breaks and hindrances while the study took place.• The feedback given by recipients is not necessarily right. CHAPTER 3 a. Profile of Paper Industry 31
    • WHAT IS PAPER “Paper has played a vital role in the development of mankind,since times immemorial, as a means of communication, as the mostversatile material for packing of goods, as a medium of preservingknowledge for progeny.Paper is defined as “A mat of cellulose fibers arranged in crises –crossfashion with hydrogen bond and other forces”.INTRODUCTION Paper is derived from the word “papyrus”. Today, paper includesa wide range of products with very different applications:communication, cultural, educational , artistic, hygienic, sanitary aswell as storage and transport of all kinds of goods. It’s almostimpossible to imagine a life without paper.There is a degree of consensus that the art of making paper was firstdiscovered in China and its origin in that country is traced back to 2 ndCentury. In about A.D.105 Ts’ Lun , an official attached to imperialcourt of China , created a sheet of paper using Mulberry and otherbast fibers along with fishnets, old rags and hemp waste. (2 ndCentury B.C)Chinese considered paper a key invention and kept this a closelyguarded secret for over Five Centuries until the technology slowlymade it way westward. The Arabs captured Chinese city containing apaper mill in the early 700’s and from this started their own papermaking industry.(Early 700’s )Invention of printing in 1450’s brought avastly increased demand for paper . 32
    • LIST OF SATEWISE INDIAN PAPER INDUSTRY Table 1: NO.OF PAPER MILLS STATE ANDHRA PRADESH 22 ASSAM 02 BIHAR 04 GUJARAT 68 HARYANA 15 HIMACHAL PRADESH 06 JAMMU & KASHMIR 01 KARNATAKA 14 KERALA 05 MADHYA PRADESH 21 MAHARASHTRA 71 NAGALAND 01 ORISSA 09 PONDICHERRY 01 PUNJAB 37 RAJASTHAN 07 TAMIL NADU 31 UTTAR PRADESH 16 WEST BENGALTOTAL 594SOURCE: Indian Press Services News Bulletin. 33
    • J K ORGANIZATION - HOW IT ALL BEGAN During the later half of the 18th Century , Shri Binodia RamSinghania of village Singhana, which lies in the Shekavati region ofRajasthan, migrated to Uttar Pradesh. The family settled down inKanpur and slowly spread its roots there. JK Organization was bornunder the leadership of Lala Kamlapatji and his father Lala Juggilalji.Hence the name – J.K.A VISION TAKE SHAPE The foundation of JK Organization was laid when the nation waspassing through turbulent times. It was the time when Indians werediscriminated against, in their own home land. Born on 7th November,1884, Lala Kamlapatji, the worthy son of Lala Juggilal Singhania, set upthe first Cotton Mill in Northern India in 1921, exclusively using Indiancapital, Management and Labour. One after another, other enterpriseswere started by him. JK Jute Mills Co. Ltd., JK Iron & Steel Co. Ltd., JKOil Mills, JK Cotton Manufacturers, JK Hosiery Factory, JK HosieryFactory (Calcutta), Kamlapat Motilal Sugar Mills, Kamla Ice Factory –were few of the initiatives of Lala Kamlapat Singhania.LEGACY OF ENTREPRENEURSHIP CONTINUED Keeping alive the spirit of entrepreneurship, the three sons ofShri. Kamlapat Singhania – Sir Padampat Singhania, Lala KailashpatSinghania and Lala Lakshmipat Singhania – started up a number ofindustries across India and further consolidated the existingbusinesses. They were the pioneers in setting up a mini steel plant in1924, and first Indian Jute Mill in 1929 in Uttar Pradesh. 34
    • FROM HISTORY TO CONTEMPORARY The Singhanias of today and their generation next have inheritedthe spirit of meeting the entrepreneurial challenges of the times fromtheir forefathers. Under the visionary leadership of Shri Hari ShankarSinghania, President, JK Organisation, supported by his brothers, theorganization has shown exemplary growth in diversified businesses.GROUP COMPANIES Chart 1: With a century of multi-business, multi-product and multi-location business operations, the Group has Companies with a diverseportfolio including Automotive Tyres & Tubes, Paper & Pulp, Cement, V-Belts, Oil Seals, Power Transmission Systems, Hybrid Seeds, WoollenTextiles, Readymade Apparels, Sugar, Food & Dairy Products,Cosmetics, etc. All products of the Group are not only strong brandnames but also reputed market leaders in their respective segments. With its operations spread in almost every state of India, theGroup employs over 30,000 people along with a nationwide sales and 35
    • service network of over 10,000 distributors and a large number ofretailers and service centers.Some of the leading Group Companies include: JK Tyre – JK Industries Ltd. Is a leading Tyre manufacturer in India. JK Paper – It is one of the India’s foremost paper manufacturers. JK Lakshmi Cement – It is a renowned and well-established name in the Indian Cement Industry. Fenner India – It is the leading manufacturer of V-belts, Oil Seals and Power Transmission Systems. JK Seeds – JK Agri Genetics Ltd. Is one of the most reliable and well- known names in Hybrid Seeds. JK Dairy – It is engaged in the production and sale of Milk Powders and Ghee. JK Sugar – It is one of the leading producers of high quality Sugar in India. b. Profile of JK Paper Mills Pvt. Ltd. 36
    • J K PAPER LTD. JK Paper Ltd., India’s largest producer of Branded papers is aleading player in the Printing and Writing segment. It operates twoplants in India, one in the East – JK Paper Mills (JKPM) in Rayagada,Orissa with a capacity of 127,000 tonnes per year and the other in theWest – Central Pulp Mills (CPM), located in Songadh, Gujarat with aproduction capacity of 55,000 tonnes per year.JK PAPER MILLS Chart 2: A View of J K Paper Mills, Jaykaypur, Rayagada JK Paper Mills, a Unit of JK Paper Ltd. Is a premier integrated Pulpand Paper Mill located at Jaykaypur, Dist. Rayagada, Orissa. JKPM wascommissioned in the year 1962 with an integrated pulp and paperplant with 15000 TPA installed capacity for manufacturing high qualitywriting and printing papers. Over the years, the production capacityhas been enhanced to a level of 127,000 TPA with the addition of 4more paper machines manufacturing diversified product range from 29GSM to 300 GSM of different grades of paper. In 2005, an offlinecoating machine has also been set up to manufacture premium gradesof coated papers. 37
    • Since its inception, JK Paper Mills has strived for excellence andconsistently set high standards in quality, productivity, conservation ofenergy and water, industrial safety as well as pollution control andenvironment protection which are indicated by achievements like: Manufacture of surface sized Maplitho for the first time in the country with indigenous raw material. Capacity utilization of 120% First Paper Mill in India to get ISO 9001 and ISO 14001. Adjudged First Greenest Paper Mill in India in 1999. Most modern and largest pulp mill in the country. First Paper Mill not only in India but also in South-East Asia to have received TPM Excellence Award from Japanese Institute of Plant Maintenance, Japan.ORGANISATIONAL CHART Chart 3: 38
    • Headquarters Strategy Department Finance Department IT Department Administration Marketing Department Public Relations Department Legal Department Personnel Department Sales Department Research Department Logistics Department Production Security DepartmentPRODUCTION CAPACITY OF JK PAPER MILLS Table 2:MACHINE YEAR OF INSTALLED INSTALLATION CAPACITY, TPAPaper Machine –I 1962 35,000 tpaPaper Machine- II 1970 4,700 tpaPaper Machine –III 1972 26,000 tpaPaper Machine –IV 1989 8,000 tpaPaper Machine –V 1994 16,000 tpaTOTAL 90,000 tpaJ K PAPER MILLS PHILOSOPHY 39
    • JK Paper Mills believe that leadership is not merely a matter ofsize. With leadership, comes the responsibility to drive growth in all itspossible dimensions. Leadership demands transformation. And to thatextent, leadership shapes the very quality of growth. At JK Paper Mills, it is this ceaseless quest for holistic growth thathas shaped its operations in the present as well as influenced theirinvestments in the future – in world-class technologies for enhancingcustomer experience, besides enabling to fulfill social responsibilities. At JK Paper Mills, technology up-gradation has meant morethan just better business sense. JK Paper Mills have moved beyondenhanced productivity, wider product range and better value, toinvesting in and nurturing a future ready organization that is driven byits two core growth engines – Customers and Environment. J K Paper Mills firmly believe that much more than thetechnology, it’s how well equipped we are to harness it thatdetermines the road to transformation. And therefore, JKPM’sinvestments are focused on continuous and consistent up-gradation ofprocesses, people and nature. Be it converting wastelands intoproductive plantations to produce world-class pulp, or scouting for andmentoring professionals who can drive the technology movement at JKPaper Mills.VISION To be a dynamic benchmark and leader in the Indian paper industryMISSION 40
    •  To achieve growth and leadership through the JK brand equity, customer obsession, technological innovation and cost leadership, with a clear focus on environment, while continuously enhancing shareholder value.QUALITY POLICY To provide ‘customer delight’ – both internal and external – through our products and services at lowest cost by continuous improvement in processes, productivity, quality and management systems.LEADERSHIP IN BRANDS The secret of success of the J K Paper Mills is attributed to itspolicy for sustained efforts for quality, new product development andcontinuous offering of value added products to customers. JK Paper Mills has been consistently consolidating its leadershipposition in the Indian Paper Industry by continuously focusing onquality upgradation and productivity increase. Beyond this, JK PaperMills has been investing continuously in “Branding” of its products,resulting in almost half of its revenues coming from branded products. 41
    • Not only has the Company retained its dominant leadership in thebranded paper market but has been introducing premium new brandslike “JK Excel Bond”, “JK Copier Plus” and “JK Savanna” year after yearin International quality consumer friendly packs. Both JK Copier and JKEasy Copier are the country’s two largest paper brands.PRODUCTS OFFERED BY JK PAPER MILLS Table 3:SURFACE SIZED MAPLITHO Super grade of writing & printingAND SURFACED SIZED SUPER paper with high finish and brightness.HIGH BRIGHT MAPILTHOJK COPIER A paper most suited in all Xerox Machines.SURFACE SIZED PULP BOARD Super grade of Board for printing && SURFACE SIZED SUPER paching with high finish andHIGH BRIGHT PULP BOARD brightness.CHANCELLOR BOND A superior variety Bond and writing and printing.JK BOND A normal grade of Bond PaperWOOD FREE PRINTING A writing and printing paper with good finish and brightness meant for export market.ARIMAL A lower grammar writing & printing paper used for Bills Books as well as Airmail.JK LASER PRINTING Suitable for Laser PrinterTITANIUM DIOXIDE LOADED A better grade food packaging paperTISSUE PAPEROPAQUE PRINTING PAPER A common food packaging 42
    • WHITE OFFSET BOARD A high bright board supplied to cigarette industriesVARNISHABLE MAPLITHO Catering labels and quality printing jobs with varnishingYELLOW PRINTING Used for yellow pages in Telephone Directory as well as for other quality printingWAX MATCH TISSUE Used for match sticks of better qualityOFFSET PRINTING A paper used for coating base(NATURAL SHADE )Block centered art board For playing cardsINVORY BOARD A superior coated board used for Visiting cards and invitation cards.ENAMEL BOARD A superior coated board used for visitingCHROMO PAPER A coated Board used for printing magazine covers.JK PAPER & SOCIETY JK Paper has always been a front runner in taking initiatives forimproving the quality of life of the community, especially in the vicinityof its manufacturing plants. Some of the initiatives taken in the lastfew years towards Community Development and enhancingCommunity Relations include:EDUCATION 2 full fledged schools at Jaykaypur, Rayagada (Orissa). 2800 children is the strength of the students at present, which include 43
    • children of Company employees as well as from the community of nearby villages. Adult literacy programme for local community. Night schools for adults, which are being run by unemployed youths from the villages.FINANCIAL ASSISTANCE FOR – School construction & Furnishing Providing educational aids & school uniform, text books, black boards etc. Scholarship to students. Schools for mentally challenged with residential care facilities.HEALTH JKPM has its own dispensary, which, in addition to the employees, also attend to residents of the communities in the vicinity.  Health awareness programme, doctors and renowned experts are invited to organize camps for awareness and also for cardiology, gynecology, dental, eye and family planning programmes in collaboration with Government hospitals, local clubs etc. SPORTS AND OTHER RECREATIONAL ACTIVITIES 44
    •  Games and sports are promoted among the village youth through local tournaments. Similarly, to promote sports, apart from organizing rural tournaments, sports kits are distributed free of cost to over 25 villages in Orissa every year. ENVIRONMENT JK Paper Mills ensures that not only are its effluents well within the notified parameters but it also takes proactive measures to continuously improve them further. The Company has signed a voluntary Charter on Corporate Responsibility for Environment Protection (CREP) with Ministry of Environment & Forests and is investing in the required facilities for environment protection. Projects for conservation of energy and water are regularly taken up at both Mills. Treated effluent water is being used for irrigation purpose. INFRASTRUCTURE  Infrastructure development projects like building approach roads to nearby villages, providing pipe water supply, construction of Water storage tank, Town Gate. Police Chowki, etc. are regularly taken up around J K Paper Mills. ANCILLARY DEVELOPMENT 45
    •  Realising that apart from development programmes, the communities also need source of livelihood, the Company is promoting various ancillary industries like alum, carton, core pipe, dry board, fly ash bricks and other industries in the vicinity of the Mills, generating local employment opportunities. ASSISTANCE FOR NATURAL CALAMITIES JK has always been in the forefront of meeting the challenges of natural calamities. Be it the recent flood in Surat, drought or super- cyclone in Orissa or the Gujarat Earthquake, or other tragedies like tsunami elsewhere. Apart from cash contributions by the Organization, employees have also contributed generously from their salaries. Additionally, immediate relief material in terms of medicines, blankets, tents etc. have also been sent to the relief camps for distribution. JKPM opened a special nursery at Bhubaneswar to enable new plants to be planted in places where super-cyclone had uprooted the existing trees. AN EVERGREEN VISION Responsible paper making demands a holistic environmental vision and J K Paper Mills see trees as not just a critical raw material resource but also the means to transform the lives of the rural community while also promoting a greener India. 46
    •  Today, J K Paper Mills high tech farm forestry movement is 53,000 hectares vast and has become a People’s Movement involving thousands of farmers across Orissa, Andhra Pradesh, Chhattisgarh, West Bengal, Gujarat and Maharastra. Alongwith environmental benefits, distribution of high yield Clonal plants developed at JKPM’s in- house R & D Centre has helped farmers to substantially increase the returns from their farms. Teams from the Company travel across the rural hinterland encouraging, educating and advising farmers about the merits of farm forestry and the latest farming techniques. Advanced research in high-yield saplings has resulted in enhancing raw material availability and quality, greening of surroundings and generating nearly 28 million man-days of employment among the rural masses. It has put JK Paper ahead, both in terms of product quality and cost competitiveness. What sets eco-commitment apart is J K Paper’s unique corporate vision to protect the environmental through process innovations rather than end-of-process treatments. Thus, J K Paper’s environmental friendly practices are designed to go beyond our operational requirements and work towards ensuring a better and greener tomorrow for the society as a whole. THE SPRIT OF PEOPLE … JK Paper Mills today continues to be the Industry’s Change Agent and benchmark, thanks to the indomitable spirit of its people. Leadership, at all levels in the organization has enabled J K Paper Mills to scale new heights in various facets of the Business. Be it brands, quality of products and services, technology and innovative strategies, 47
    • people management practices, J K Paper Mills stands out as anundisputed leader. The common perception that with increasing mechanization andautomation, the value of the human touch reduces could not be fartherform the truth. In today’s world, human decisions have a far greaterimpact over a larger interlinked process, making it even more criticalto deploy the right talent at the right place to manage the operations.To address this challenge, J K Paper Mills have invested substantially incontinuous improvement of processes and human skills. This effortinvolves identifying the grooming individuals, who can drive thetechnology movement at J K Paper, through time-tested practices suchas Quality Circles – a dynamic shop floor level participativemanagement system. Jishu Hozen Circles within the TPM (TotalProductive Maintenance) best practices, Suggestion Scheme,Exemplary Work Award and several TPM related Awards. On theprocess front, the Company has adopted an ERP (Enterprise ResourcePlanning) system to ensure seamless flow of information and enhancemanagerial efficiency. This also aids J K Paper Mills personnel inultimately enhancing Customer Satisfaction. Clearly, J K Paper has gone well beyond just strategicinvestments in technology, by implementing a series of dynamic HRpractices so that Team JK is more empowered than its peers in makingthe most of technology. 48
    • c. Performance Appraisal practices in JKPM PERFORMANCE APPRAISALIntroduction: The appraisal system is a key human resources managementsystem. While the system enables the setting of objectives andfacilitates the review of performance against these objectives, it canalso be effectively used to build customer focus and enhancecompetitiveness. This is possible if the nature of objectives and themanner in which they are achieved answers the following questions- 49
    • • When achieved, to what extent will customer value be enhanced? • When achieved, to what extent will it help the company respond to change? • When achieved, to what extent will the company’s competitiveness be enhanced?Setting objectives: Objectives must flow from the business and functional plans andaddress the key result areas of the job. Objectives must be- • Specific: The appraisee must understand them clearly. • Measurable: In term of quality, quantity, cost and time. • Attainable: Targets must have inbuilt stretch but yet be within the capabilities of the appraisee. • Relevant: to the role and responsibilities with the job and link up with the unit, business and functional plans. • Time bound: agree to the timeframe within which the objectives must be achieved, which will also help prioritization. Remember , objectives must be S.M.A.R.TPre-requisites of an effective appraisal process: • Purpose of the job- The overall rate of the job from organisation’s point of view; why the job exists and what contribution it is expected to make. • A statement of the key result areas that flow from the purpose of the job- statements of the continuing end results and outcomes required of the job, statements which identify what the job achieves and why. 50
    • • Having listed the key result areas, it is necessary to clearly state the objectives for the year. These objectives must flow from the business, functional and unit plans. • For objectives to invoke commitment, they must be agreed between the job holder and his boss and not set unilaterally. • For objectives to be meaningful, they must be specific, measurable, attainable, relevant and time bound. • The appraisal process must focus on performance against agreed objectives, enable the individual to give feedback to the organization his own feelings, aspirations, difficulties, etc and serve as a forum for dialogue between the individual and the organization. • The process must focus on performance, not personality; on facts, not perception and demonstrated behaviour, not hunches.Performance appraisal process: Chart 4: 51
    • Planning for -Ratingsperformance PeriodicGoals -Review review/feedbackStandards ObservationsKPA’S/KRA’S -Action Feedback Support Annual performance evaluation/review Ratings Review discussions Action plans - 52
    • Advantages/Benefits:To Appraisers: • More productive- Allows the appraiser to concentrate efforts on the more productive managerial tasks and activities. • Less stressful- Creates a more harmonious, less adversarial, working relationship between appraiser and appraisee. • More rewarding- Improved productivity of the work group.To Appraisees: • Feedback • Opportunity • Autonomy PERFORMANCE COUNSELINGDefinition: Performance counseling can be defined as the help provided bya manager to his subordinate in analyzing his performance and otherjob behaviors in order to increase his job effectiveness. There are threeprocesses involved in counseling- communication, influencing andhelping.Objectives: 53
    • • Helping the counselor to realize his potential as an employee. • Helping him to understand himself- his strengths and his weaknesses. • Helping him to have better understanding of the environment. • Encouraging him to set meaningful goals for further improvements. • Encouraging him to generate alternatives for dealing with various problems. • Providing him an empathic atmosphere for sharing and discussing his tensions, conflicts, concerns and problems.Conditions for effective counseling: • General climate of openness and mutuality. • General helpful and empathic attitude of the counselor. • Uninhibited participation of the subordinate. • Joint goal-setting and performance review. • Focus on work behavior. • Solving work related problems.Counseling process: A formal counseling process is of three phases-PHASE I: Rapport building. a) Attending. b) Listening. c) Acceptance.PHASE II: Exploring. a) Problem identification. b) Diagnosis.PHASE III: Action planning. 54
    • a) Searching. b) Decision making. c) Supporting.Establishing for dialoguing: The appraisal interview is also an ideal opportunity for the bossand the job holder to dialog on his career. Here are some samplequestions that can constitute the basis for a dialog on an individual’scareer-Current assignment: • What do find challenging and exciting about your current assignment? • Do you feel you are being fully utilized in your current assignment?Goals and aspirations: • What objective have you set for your personal and professional growth? • How do you intend to pursue these? • How can an organization assist in the process?Career plan: • What responsibilities do you see yourself capable of assuming? • What do you see yourself doing three years from now? 55
    • Performance ratings:Appraisal system requires an overall performance rating-  Outstanding performance.  Good performance.  Satisfactory performance.  Barely adequate performance.  Poor performance.An ongoing process: It is necessary to engage in a formal appraisal process once ayear. However we must guard against the process degenerating into ayear-end ritual- something to be got over with for the sake of the firm.Once objectives are set at the beginning of the year, any time is agood enough time for the job holder and his boss to engage in a reviewof how things are going. Periodic review and feedback on performance as well as theprocess of dialoguing whereby the individual feeds back his overallfeelings, difficulties, challenges, etc. spurs on performance andenables the achievement of results against agreed objectives as wellas reinforces ‘desired behaviors’ which in turn enhances thecompetencies of the business. 56
    • CHAPTER 4Analysis of the study on Performance Appraisal System in JKPM Duration for which the respondent has been working in JKPM.This question was asked to the employees working in JKPM to find outthe duration for which they have been working in the organization,based upon which we can know if the employees are satisfied withtheir job in the company or not. Table 4: Duration of work period in JKPM.Particulars No. of respondents Percentage of respondents0-1 yrs 2 3%1-5 yrs 33 55%5-10 yrs 15 25%10+ yrs 10 17%Total 60 100% 57
    • Chart 5: Duration of work in JKPM. 35 30 25 20 15 no. of respondents 10 5 0 0-1 yrs 1-5 yrs 5-10 yrs 10+ yrs 3 percent of the respondents are dealing with JK Paper Mills forless than a year. 55 percent of the respondents are dealing in JK PaperMills from 1-5 yrs. 25 percent of the respondents are dealing in JKPaper Mills from 5-10 yrs. 17 percent of the respondents are dealing inJK Paper Mills for over 10 yrs. 58
    • Extent of satisfaction in setting goals/objectives in the beginning of the year.This question was asked to the employees of JKPM to find out theextent of satisfaction of the employees in setting goals/objectives inthe beginning of the year to know if they are being given opportunitiesto express their views. Table 5: Extent of satisfactionParticulars No. of respondents Percentage of respondentsVery satisfied 38 63%Satisfied 18 30%Dissatisfied 4 7%Total 60 100% Chart 6: Extent of satisfaction. 40 35 30 25 20 no. of respondents 15 10 5 0 very satisfied satisfied dissatisfied 63 percent of the respondents are very satisfied in setting theirgoals and objectives in the beginning of the year. 30 percent of therespondents are satisfied in setting their goals and objectives in thebeginning of the year. 7 percent of the respondents are dissatisfied insetting their goals and objectives in the beginning of the year. 59
    • Ratings of the PA strategies and programmes in the company.This question was asked to the employees of JKPM to rate the standard of various PA strategies and programmes that take place in the organization. Table 6: Ratings of PA strategies.Particulars No. of respondents Percentage of respondentsGood 42 70%Average 18 30%Bad 0 0%Total 60 100% Chart 7: Ratings of PA strategies. 45 40 35 30 25 20 no. of respondents 15 10 5 0 Good Average Bad70 percent of the respondents rate the Performance Appraisalstrategies as good. 30 percent of the respondents rate thePerformance Appraisal strategies as average. None of the respondentsrates the Performance Appraisal strategies as bad. 60
    • Performance Appraisal strategies are fair and objective.This question was asked to the employees to know if the performanceappraisal strategies are fair and objective to the employees. Table 7: PA strategies are fair or not.Particulars No. of respondents Percentage of respondentsYes 34 84%No 26 16%Can’t say 0 0%Total 60 100% Chart 8: PA strategies are fair or not. 35 30 25 20 15 no. of respondents 10 5 0 Yes No Cant say84 percent of the respondents say that the Performance Appraisalstrategies are fair and objective. 16 percent of the respondents saythat the Performance Appraisal strategies are not fair and objective.None of the respondents are there who can’t say anything. It is necessary to appraise an employee. 61
    • This question was asked to the employees to know how important it isto appraise an employee. Table 8: Necessity to appraise an employee.Particulars No. of respondents Percentage of respondentsYes 60 100%No 0 0%Total 60 100% Chart 9: Necessity to appraise an employee. 60 50 40 30 no. of respondents 20 10 0 Yes No100 percent of the respondents say that it is necessary to appraise anemployee. None of the respondents says that it is necessary toappraise an employee. 62
    • There is clarity in what is expected from the employee.This question was asked to the employees to know if they are madeclear on what is expected of them so that they can work accordingly. Table 9: Clarity in what is expected from the employee.Particulars No. of respondents Percentage of respondentsYes 60 100%No 0 0%Total 60 100% Chart 10: Clarity in what is expected from the employee. 60 50 40 30 no. of respondents 20 10 0 Yes No100 percent of the respondents say that they are clear with what isexpected of them. None of the respondents say that they are not clearwith what is expected of them.Feedback is given to the Management Cadre Staff for the task accomplished by them. 63
    • This question was asked to the employees to know if they are providedwith proper feedback for the task they accomplish, based upon whichthey can work better in future. Table 10: Feedback is given to MCS.Particulars No. of respondents Percentage of respondentsYes 37 62%No 23 38%Total 60 100% Chart 11: Feedback is given to MCS. 40 35 30 25 20 no. of 15 respondents 10 5 0 Yes No62 percent of the respondents say that the feedback is given to theMCS for the task accomplished by them. 38 percent of the respondentssay that the feedback is not given to the MCS for the taskaccomplished by them. Suggestions and innovations are rewarded. 64
    • This question was asked to the employees to know if they aremotivated by accepting their suggestions and innovations in the formof rewards. Table 11: Suggestions and innovations are rewarded.Particulars No. of respondents Percentage of respondentsYes 21 35%No 39 65%Total 60 100% Chart 12: Suggestions and innovations are rewarded. 40 35 30 25 20 no. of 15 respondents 10 5 0 Yes No35 percent of the respondents say that their suggestions andinnovations are rewarded. 65 percent of the respondents say that theirsuggestions and innovations are not rewarded. Supervisors take interest in sharing an employee’s personal concern. 65
    • This question was asked to the employees to know if the employees’ problems are dealt well by their supervisors so that their morale increases and they are satisfied with their job. Table 12: Supervisors share an employee’s personal concern.Particulars No. of respondents Percentage of respondentsYes 43 72%No 17 28%Total 60 100% Chart 13: Supervisors share an employee’s personal concern. 45 40 35 30 25 no. of 20 respondents 15 10 5 0 Yes No72 percent of the respondents say that the supervisors take interest insharing their personal concern. 28 percent of the respondents say thatthe supervisors do not take interest in sharing their personal concern. Annual increments/promotions are based on performance.This question was asked to the employees to know if the annualincrements/promotions are based on their performance or not. 66
    • Table 13: Increments & promotions based on performance.Particulars No. of respondents Percentage of respondentsYes 49 82%No 9 15%Can’t say 2 3%Total 60 100% Chart 14: Increments & promotions based on performance. 50 40 30 no. of respondents 20 10 0 Yes No Cant say82 percent of the respondents say that the annualincrements/promotions are based on their performance. 15 percent ofthe respondents say that the annual increments/promotions are notbased on their performance. 3 percent of the respondents can’t say ortheir answers are inapplicable.Extent of satisfaction in interdepartmental teamwork.This question was asked to the employees to know the extent ofsatisfaction in interdepartmental teamwork based on which theireffectiveness in work can be known. 67
    • Table 14: Satisfaction in inter departmental team work.Particulars No. of respondents Percentage of respondentsVery satisfied 17 28%Satisfied 30 50%Dissatisfied 13 22%Total 60 100% Chart 15: Satisfaction in inter departmental team work. 30 25 20 15 no. of respondents 10 5 0 very satisfied satisfied dissatisfied28 percent of the respondents are very satisfied withinterdepartmental teamwork. 50 percent of the respondents are justsatisfied with interdepartmental teamwork. 22 percent of therespondents are dissatisfied with interdepartmental teamwork. Extent of help of training and development programmes in improving employees’ performance. 68
    • This question was asked to the employees to know how far the training and development programme is helping the employees to learn and work better. Table 15:Particulars No. of respondents Percentage of respondentsTo great extent 13 22%To some extent 42 70%To very little extent 5 8%Total 60 100% Chart 16: 45 40 35 30 25 20 15 no. of respondents 10 5 0 great extent some extent very little extent22 percent of the respondents say that the training and developmentprogrammes help to a great extent to improve their performance. 70percent of the respondents say that the training and developmentprogrammes help to some extent to improve their performance. 8percent of the respondents say that the training and developmentprogrammes help to a very little extent to improve their performance.Performance Appraisal System is used in job rotation. 69
    • This question was asked to the employees to know the extent of use ofperformance appraisal system in job rotation. Table 16:Particulars No. of respondents Percentage of respondentsMostly 7 12%Partially 53 88%Nil 0 0%Total 60 100% Chart 17: 60 50 40 30 no. of respondents 20 10 0 Mostly Partially Nil12 percent of the respondents say that performance appraisal systemis mostly used in job rotation. 88 percent of the respondents say thatperformance appraisal system is partially used in job rotation. None ofthe respondents say that performance appraisal system is not at allused in job rotation. Extent of the purpose of performance appraisal system being fulfilled. 70
    • This question was asked to the employees to know how far theperformance appraisal system is actually helping them in their work. Table 17:Particulars No. of respondents Percentage of respondentsCompletely 39 65%Partially 21 35%Total 60 100% Chart 18: 40 35 30 25 20 no. of respondents 15 10 5 0 Completely Partially65 percent of the respondents say that the purpose of performanceappraisal is completely fulfilled. 35 percent of the respondents say thatthe purpose of performance appraisal is partially fulfilled. JKPM always strives for continuous individual improvements. 71
    • This question was asked to the employees to know how far they agreewith the fact that JKPM always strives for continuous individualimprovements. Table 18:Particulars No. of respondents Percentage of respondentsStrongly agree 13 22%Agree 35 58%Disagree 9 15%Strongly disagree 3 5%Total 60 100% Chart 19: 35 30 25 20 15 no. of respondents 10 5 0 Strongly Agree Disagree Strongly agree disagree22 percent of the respondents strongly agree that JKPM always strivesfor continuous individual improvements. 58 percent of the respondentsagree that JKPM always strives for continuous individual improvements.15 percent of the respondents disagree that JKPM always strives forcontinuous individual improvements. 5 percent of the respondentsstrongly disagree that JKPM always strives for continuous individualimprovements. CHAPTER 4 72
    • a. Findings1) Presence of a firmly implemented career plan- good sense of growth.2) High proportion of routine work- during training and immediately after.3) Organization climate- • Well analyzed goals are set. • Good and effective performance appraisal strategies applied. • All the strategies are fair and objective. • The employees are well aware of what is expected of them. • Proper feedback is not given to the management cadre staff. • Suggestions and innovations are not rewarded. • Supervisors are patient with the employees’ problems. • Good performance leads to annual increments and promotions. • Training and development programs are not very effective and helpful. • The purpose of Performance Appraisal System followed in the company is fulfilled. 73
    • b. Suggestions• Extensive of the job training.• Free hand in decision making.• Focused job responsibility.• Transparent career planning of all officers.• Give tangible advantages.• Exemplary rewards should be given for unique achievements of the employees.• Informal were calling as and when they need.• Giving chance in decision making.• Reward for employee work.• Proper interactions with seniors.• Effective training and development programs should be held.• Proper feedback should be given to the management cadre staff at fixed time periods.• Suggestions and innovations should be encouraged.• Performance appraisal system should be extensively used in job rotation.• Up gradation of basic qualification of all workers to be taken in future based on their performance.• Improve competency of the workers.• The company should concentrate more on individual development. 74
    • c. SummaryChapter I: This chapter gives us insight into the world HumanResource Management in general and talks about all the related topicswhich effect the Human Resource Management in myriad ways. It alsogives us proper introduction and definitions of Human ResourceManagement. This chapter includes the review of literature of performanceappraisal. It also includes the various articles which are referred for theaccomplishment of the project.Chapter II: This chapter deals with Methodology of the study and alsoits needs and objective of the study. It deals with how the survey was carried out by taking theprimary data and secondary data that is by carrying out survey andalso taking the finding of other surveys and document into account. It talks about the needs and objective of the study to find outhow the company is faring in and around its region and how it canimprove its retention strategies. It also find out the limitation that Iencountered during the period of study.Chapter III: This chapter deals with the Profile of the company it tellsus the history of the company, it goes on to talk about the progressand all innovations and technological progress that the company hasmade over the years, it also talks about how the company has excelledin retaining its employees over the years, it tells us about the quality 75
    • legacy of the company, it gives us an insight about the topmanagement of the company, it end it talks about the unique retainingstrategies of the company and few of the products that the companysells.Chapter IV: This Chapter deals with the analysis of the survey that Ihad conducted during the period of my study. This survey tries to findout how the performance appraisal strategies effects the employees inthe organization. 76
    • BIBLOGRAPHYBooks: • Donald L. Kirkpatrick, 2006, Improving Employee Performance through Appraisal and Coaching. • Richard Rudman, 2003, Performance Planning and Review. • Roger E. Herman, 1997, The Process of excelling, oak Hill press. • P. Subba Rao, 2006, Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing House.Journals: • Gitam Journal of Management. • Journal of Occupational and Environmental medicine. • Indian Journal of Social Work. • Indian Journal of Human Resource.Websites Visited: • www.jkorg.in • www.google.com • www.answers.com • www.wikipedia.org 77
    • Questionnaire on PerformanceAppraisal for appraisees and appraisers (Tick your choice)1) Since how long have you been working in JK Paper Mills?□0-1 yrs □ 1-5 yrs □5-10 yrs □10+ yrs2) How satisfied are you in setting your goals and objectives inthe beginning of the year?□ Very satisfied□ Satisfied□ Dissatisfied3) How are the Performance Appraisal strategies andprogrammes in the company□ Good□ Average□ Bad4) Do you consider Performance Appraisal strategies fair andobjective?□ Yes□ No□ Can’t say5) Is it necessary to appraise an employee?□ Yes 78
    • □ No6) Are you clear with what is expected of you?□ Yes□ No7) Are the Management Cadre Staff provided with regularperformance feedback?□ Yes□ No8) Are your suggestions and innovations rewarded?□ Yes□ No9) Do your supervisors take interest in sharing your personalconcern?□ Yes□ No10) Are your annual increments/promotions based on yourperformance?□ Yes□ No□ Can’t say11) How satisfied are you in interdepartmental teamwork?□ Good□ Average□ Bad 79
    • 12) To what extent do training and development programmeshelp in improving your performance?□ To great extent□ To some extent□ To very little extent13) How far is the Performance Appraisal system used for jobrotation?□ Mostly□ Partially□ Nil14) To what extent is the purpose of Performance Appraisalfulfilled?□ Completely□ Partially□ Nil15) Does JKPM always strive for continuous individualimprovement?□ Strongly agree□ Agree□ Disagree□ Strongly disagree Visit hrmba.blogspot.com for more project reports, notes etc.Name of the respondent :Address : Phone no. : 80
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