Effectiveness of Performance appraisal system Power Soap ltd manufacturing industry

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Effectiveness of Performance appraisal system Power Soap ltd manufacturing industry

  1. 1. CHAPTER - IINTRODUCTION 1
  2. 2. CHAPTER – 1 INTRODUCTION Appraising the performance of individuals, groups and organizations is a common practice of all societies. While in some instances the appraisal processes are structured and formally sanctioned, in other instances they are an informal and integral part of daily activities. Thus, teachers evaluate the performance of students, bankers evaluate the performance of creditors, parents evaluate the behavior of the children, and all of us, consciously or unconsciously evaluate our own actions from time to time. “Performance appraisal” has been identified as one of the most complex ofman-management activities. It is often a difficult and emotion laden process.Performance appraisal has become part of organizational life. Every organization hassome kind of evaluating the performance of its personnel. “Performance appraisal” or “Merit rating” is one of the oldest anduniversal practices of management. This approach resulted in an appraisal system inwhich the employee’s merits like initiative, dependability, personality etc werecompared with others and ranked or rated.HISTORY During and after World War I, systematic performance appraisal was quiteprominent. Credit goes to Walter Dill Scot for systematic performance appraisaltechnique of “man-to-man rating system” (merit rating). It was used for evaluatingmilitary officers. Industrial concerns also used this system during 1920s and 1940sfor evaluating hourly paid workers. However, with the increase in training andmanagement development programs from 1950s, management started adoptingperformance appraisal for evaluating technical, skilled, professional and managerialpersonnel as a part of training and executive development programmes. With thisevolutionary process, the term merit rating had been changed into employee appraisalor performance appraisal. 2
  3. 3. MEANING Performance Appraisal is a method of evaluating the behavior of employees inthe work spot, normally including both the quantitative and qualitative aspects of jobperformance. Performance here refers to the degree of accomplishment of the tasksthe make up an individual’s job. It indicates how well an individual is fulfilling thejob demands. Often the term is confused with effort, which means performance isalways measured in terms of results. “Performance appraisal” is a systematic evaluation of present and potentialcapabilities of personnel and employees by their superiors, superior’s superior or aprofessional from outside. “It is a process of estimating or judging the value, excellentqualities or status of a person or thing.”DEFINITION 1 According to ‘Flippo’ (1998), “Performance appraisal is the systematic periodic and an impartial rating of an employees excellence in matters pertaining to his present job and his potential for a better job” 2 According to ‘C. Higel’ (1973), “The performance appraisal is the purpose of evaluating the performance and qualification of the employees in terms of the requirement of the job for which he is employed, for the purposes of administration including placement, selection for promotion, providing financial rewards and other actions which require differential treatment among the members of a group as distinguished from action affecting all members equally”. 3 According to ‘N.K. Rowland’ (1970), defines “performance appraisal is the process of assessing the performance and progress of an employee or of a group of employees on a given job and his potential for future development.” 3
  4. 4. METHODS OF PERFORMANCE APPRAISAL There are several methods and techniques used for evaluating employeeperformance. These may be classified into two broad categories as stated byC.B.Gupta (1998) 1. Traditional methods 2. Modern methodsTRADITIONAL METHODS“Traditional method” envisages the following: - 1. CONFIDENTIAL REPORT A confidential report is a report prepared by the employee’s immediate superior. It covers the strength and weakness, main achievements and failure, personality and behavior of the employee. It is descriptive appraisal used for promotions and transfers of employees. 2. FREE FORM OR ESSAY METHOD Under this method, the evaluator writes a short easy on the employee’s performance on the basis of overall impression. The description is expected to be a factual and as concrete as possible. An essay can provide a good deal of information about the employee especially if the evaluator gives examples of each one of his judgment. 3. STRAIGHT RANKING METHOD In this technique, the evaluator assigns relative ranks to all the employees in the same work unit doing the same job. Employees are ranked from the best to the poorest on the basis of overall performance. The relative position of an employee is reflected in this numerical bank. 4
  5. 5. 4. PAIRED COMPARISON METHOD Each employee is compared with all the others, in pair one at a time. The number of times an employee is judged better than the others determine his rank. Comparison is made based on overall performance. The number of comparisons to be made can be decided based on the following:N (N-1)/2. Where N is the number of person to be compared.5. FORCED DISTRIBUTION METHOD In this technique, the rate is required to distribute his rating in the form of a normal frequency distribution. This method eliminates the rate bias of central tendency. It helps to reduce bias involved in straight ranking and paired comparison.6. GRAPHIC RATINGS SCALE METHOD The rater is given numeric scale indicating different degrees of a particular trait. The rate is given a printed form for each employee to be rated. The form contains several characteristics relating to the personality and performance of employees. Intelligence, quality of work, leadership skills, judgment etc are some of the characteristics. The rater records his judgment on the employee’s trait on the scale. The numerical points given are added up, to find out his overall performance standing in the group.7. CHECK LIST A checklist of statements that describe the characteristics and performance of employee in his job. The rater checks to indicate if the behavior of an employee is positive or negative to each statement. The performance of an employee is rated on the basis of number of positive checks.8. CRITICAL INCIDENT METHOD In this method supervisor keeps a written record of critical (either good or bad) events and how different employees behaved during such events. The rating of an employee depends on his positive/negative behavior during these events. 5
  6. 6. 9. GROUP APPRAISAL METHOS Under this method, a group of evaluators assess the employees. This group consists of the immediate supervisor of the employee, other supervisor having close contact with the employee’s work, head of the department and a personnel expert. The group determines the standards of performance for the job, measures actual performance and offer suggestions for improvement in future.10. FIELD REVIEW METHOD In this method a training officer from the personnel department interviews line supervisors to evaluate their respective subordinates, the interview prepares in advance the questions to be asked. By answering these questions the supervisors gives his opinion about the level of performance of his subordinate, the subordinate work progress, his strength and weakness, promotion potential etc. the evaluators takes detailed notes of the answers which are then approved by the concerned supervisor. These are then placed in the employee personnel service file.MODERN METHODS 1. Appraisal by results MBO This method has been evolved by “Peter Drucker”. MBO is potentially a powerful philosophy of managing and an effective way for operationalising the evaluation process. MBO can be described as a “Process whereby the supervisor and subordinate managers of an organization jointly identifies its common goals, define each individuals major area of responsibility in terms of results expected of him and use these measures as guides for operating the unit and assessing the contributions of each of its members. 2. Assessment centre method The assessment centre concept was initially applied to military situations by Simoniet in the German Army in the1930 and the war office selection board of the British Army in the year 1960s. The purpose of this 6
  7. 7. method and is to test candidate in a social situation. Assessments are made to determine employee potential for purpose of promotion. 3. 360 degree performance appraisal The appraisal may be any person who thorough knowledge about the job has done by contents to be appraised. Standards of contents and who observes the employee while performing a job. The 360 degree feedback is understood as systematic collection of performance data on an individual or group, derived from a number of stakeholders-the stakeholders being the immediate supervisors, team members, customers, peers and self. FACTORS AFFECTING PERFORMANCE APPRAISAL According to Chakraborthy (1978) performance appraisal should be done withcaution. It is always advisable to make a preliminary survey of the followingconstraints within which the employees of an organization are working.1. Environmental constraints. These are several environmental constraints, which may outside the control ofworker and to ignore this fact in judging his performance would be unjust. Forexample. The quality of raw material in an organization may deteriorate over a periodor the machinery may break down unexpectedly. As a result, both productivity andquality may suffer. But if selection of materials and maintenance of machinery aredone at higher levels in the organization the performance appraisal of the workershould not be affected.2. Organizational leadership The style of the top leadership of an organization should also be looked into.It is nature of leadership at the top, which determines largely the loyalty andcommitment of employees to the goals of an organization for better performance.Employees at every level become highly performance conscious. Performanceappraisal under such conditions is liked by everybody but in opposite conditions it isconsidered as an imposition.3. Interdependence of sub-systems 7
  8. 8. Since every organization is a big system composed of a number ofinterdependent sub-systems, the success or failure of any one sub-system has got to beinterpreted in the context of all other sub-systems to which it is related. For example,the sub-standard output of the production department may be due to the poor qualityof purchases made by the purchasing Department or the trouble may be at somehigher level sub-systems where planning for the production and purchase departmentshas been done. It is precisely because of this interdependence of sub-systems that suggestionis often made to start performance appraisal from the apex. This leads to moresystematic and logical cause-and-effect tracing of performance at all levels within theorganization.4. Organizational structure Initiative, drive and innovation thrive best in a flexible structure. Thesequalities do not receive encouragement in a rigid structure. This is because in thistype of structure the authority to approve innovation is often place several levelsabove the people who innovate. This makes the proposal pass from person to personand robs the information reaching the ultimate decision-makers of much of its logicand understanding. What is needed is a direct relationship between the doer andapprover. No matter how strategically wise or strong a boxer is if he has to call NewDelhi to clear each punch during his fight in Udaipur, he is doomed. In rigidstructures, ponderous planning and controls make people give up innovating andbecome resigned and bitter. Rather than beg for the acceptance of their innovativeideas they take their ideas and creativity home and become dead wood at work Managers commit mistakes while evaluating employees and theirperformance. Biases and judgment errors of various kinds may spoil the performanceappraisal process. Bias here refers to inaccurate distortion of a measurement. Theseare:First Impression (primacy effect): Raters form an overall impression about the rateeon the basis of some particluar characteristics of the ratee identified by them. Theidentified qualities and features may not provide adequate base for appraisal. 8
  9. 9. 1. Halo Effect: The individual’s performance is completely appraised on the basis of a perceived positive quality, feature or trait. In other words this is the tendency to rate a man uniformly high or low in other traits if he is extra- ordinarily high or low in one particular trait. If a worker has few absences, his supervisor might give him a high rating in all other areas of work.2. Horn Effect: The individual’s performance is completely appraised on the basis of a negative quality or feature perceived. This results in an overall lower rating than may be warranted. “He is not formally dressed up in the office. He may be casual at work too!”.3. Excessive Stiffness or Lenience: Depending upon the raters own standards, values and physical and mental makeup at the time of appraisal, ratees may be rated very strictly or leniently. Some of the managers are likely to take the line of least resistance and rate people high, whereas others, by nature, believe in the tyranny of exact assessment, considering more particularly the drawbacks of the individual and thus making the assessment excessively severe. The leniency error can render a system ineffective. If everyone is to be rated high, the system has not done anything to differentiate among the employees.4. Central Tendency: Appraisers rate all employees as average performers. That is, it is an attitude to rate people as neither high nor low and follow the middle path. For example, a professor, with a view to play it safe, might give a class grade near the equal to B, regardless of the differences in individual performances5. Personal Biases: The way a supervisor feels about each of the individuals working under him - whether he likes or dislikes them - as a tremendous effect on the rating of their performances. Personal Bias can stem from various sources as a result of information obtained from colleagues, considerations of faith and thinking, social and family background and so on.6. Spillover Effect: The present performance is evaluated much on the basis of past performance. “The person who was a good performer in distant past is assured to be okay at present also”.7. Recency Effect: Rating is influenced by the most recent behaviour ignoring the commonly demonstrated behaviours during the entire appraisal period. 9
  10. 10. Therefore while appraising performances, all the above biases should be avoided. PERFROMANCE APPRAISAL IN PRAVEEN CHEM INDUSTRY Performance Appraisal is not an important or easy management task and itshould be an once a easy management task and it should be an once a year event. Thereason they conduct Performance Appraisal in the first place in that they believe inaccomplishing two things. 1. Help employees to understand the quality of their current performance and identify what they must to do to improve it. 2. Motivate employees to improve their performance.Effective performance Appraisal has 3 basic components. 1 Planning (performance) 2 Managing (performance) 3 Appraising (performance) 1. PERFORMANCE PLANNING It is the process of identifying desired performance and gainingemployees commitments to perform the organization expectations. Performance planning clearly identifies the expected results as well asthe behavior and skills which are expected to demonstrate performance planningclearly identifies the expected results as well as the behaviour and skill which areexpected to demonstrate, provide a specific action plan and aimed at a clear target. 2. PERFORMANCE MANAGING This is daily process of working towards the performance expectationsestablished in the planning phase together manager and employee review theemployee’s performance on a periodic basis. 3. PERFORMANCE APPRAISAL It is both the beginning and the end point of performance management.The analysis of past performance provides the basis for planning next yearsexpectations and at the same time it “close the loop” of the current cycle. 10
  11. 11. During this, employees come to know where they stand and what is expected ofthem and what they need to achieve in the next performance period. The design alsocome to know what results it can expect from their employees and what resource liketraining and development, and counseling are needed to help than to achieve the goal.1.1. INDUSTRY PROFILE Though the beginning of detergent industry is not shrouded in the veils ofhistory as were the start of soap industry, it is nevertheless not easy to find when thedetergent industry, as such, came into existence. An important issue is to decideexactly what is being termed as a synthetic detergent as the term itself leads toconfusion. In the United States of America, the word surfactant or syndet is beingused, while in Europe the term tensile (for tensio-active material) came into fashion. The chemistry of soap manufacturing remain primarily the same until theyear 1916, when the first synthetic detergent was developed in Germany in responseto the shortage of fats for making soaps during the World War I. Commonly known asdetergents today, synthetic detergents are non-soap washing and cleaningproducts, which are put together chemically or synthesized to produce a variety of rawmaterials. The invention of detergents was also driven by the need fora cleaning agent, which, unlike soap, would not combine with the mineral saltsin water to form an insoluble substance (soap curd) on the fabric. The earliest developed synthetic detergents were short-chain alkyl napthalenesulphonates that were later found to be only somewhat good detergentsand so their properties were improved. Those detergents are still used todayas wetting agents. During 1920s and 30s, straight chain alcohols were sulphonatedto produce straight chain detergents. During the same time long chain alkyland aryl sulphonates with benzene were developed as the aromatic nucleus(the alkyl portion was derived from kerosene). By the end of Second World War, alkyl aryl sulphonates swamped thedetergent market over alcohol sulphates that later proved to be highly useful in theshampoo industry. The major uses of earlier detergents were in hand dishwashing and fine fabriclaundering. In 1946, came an important breakthrough in the development ofdetergents for all-purpose laundry applications, when the first "built" detergent 11
  12. 12. (containing a builder/surfactant combination) was offered in the U.S. Surfactant is abasic cleaning agent of a detergent product, while a builder helps a surfactant tofunction more effectively. Phosphate compounds were used as builders in thesedetergents, which significantly improved their performance, thereby making themidealforcleaningheavilysoiledlaundry. Between 1950 and 1965, more than half of the detergents were based on theformula of a propylene tetramer conjugated to benzene (PT benzene), but later theywere blamed for a rise in eutrophication in lakes and streams as they containphosphates (from Sodium triphosphate). Although the problem has not beencompletely resolved in some cases, in some countries there has been an agreement forreducing the uses of phosphates however in countries where it is not a big issue nosuch action has been taken. The problem was set down to the branched chainformation of PT benzene that resulted in the bacterias inability to degrade them.Straight-chain alcohols are degradable, hence the steps were taken to form andproduce a linear alkyl benzene molecule. By the year 1953, the sale of detergents in US had surpassed those of soap.During that time, the detergents have all but replaced soap-based products that wereused for laundering, dishwashing and household cleaning. Alone or in combinationwith soaps, the use of detergents started in many of the bars and liquids used forpersonal cleaning. Since those early discoveries in the chemistry and technique of detergents andbuilders, developments have been continued that focuses on achieving more efficientand easy to use detergent products. Now the manufacturers give an importantconsideration to safety for consumers and the environment as well. Given below is abrief summary of important inventions over the years of the history of detergents.1950sLiquid laundry, hand dishwashing and all-purpose cleaning products • Automatic dishwasher powders • Detergent with oxygen bleach • Fabric softeners (rinse-cycle added) 12
  13. 13. 1960s • Laundry powders with enzymes • Prewash soil and stain removers • Enzyme presoaks1970s • Fabric softeners (sheets and wash-cycle added) • Multifunctional products (e.g., detergent with fabric softener) • Liquid hand soaps1980s • Automatic dishwasher liquids • Detergents for cooler water washing • Concentrated laundry powders1990s • Ultra (super concentrated) powder and liquid detergents • Automatic dishwasher gels • Ultra fabric softeners • Laundry and cleaning product refills1.2 COMPANY PROFILE Power Soaps is a household name in the detergent and bathing soapsegment in South India. The brand stands proud as a triumph of entrepreneurial spirit,vision and a customer-centric business. A Dream Unfolds Started in the 1970s, Power Soaps was established as theGold Company and operated with a single unit at Kodai Road, Dindigul Dist,Tamilnadu. It was founded by Krishna Nadar, a visionary entrepreneur who believedthat there existed a great demand for quality yet affordable detergent soaps. His sharpbusiness acumen and astute strategies paved the way for the rapid growth of the 13
  14. 14. brand. He built the business on the strong foundation of ethics and building enduringcustomer relationshipsMoving to The Next Level After R Krishnan Nadars regime, the mantle was taken over by his sonK.Dhanapal who took it to newer heights and the company expanded. In 1998,detergent powder was introduced and this was an extremely successful ventureThree more manufacturing units Power Soaps Limited at Puducherry, AbiramiChemicals Pondicherry and Praveen Chem Industry at Karaikal were added tomeet the increasing demand for Power products.Taking on a New Identity The next step was to consolidate all brands under one umbrella and this wasdone through creating the Power Soaps identity. This created a leap in brand valueand image. Later, Power exited the soft drink and water business to sharpen the focuson detergents and personal carePowering Today’s World Power Soaps with its huge bouquet of detergent and personal care brands hasa huge presence across South India and exports to countries like the Gulf. The qualityproducts have been appreciated by customers making it a household name. Thebrands are backed by a strong manufacturing infrastructure with plants inSembiapalayam. Gummudipoondi, Periyapalayan, Silvassa and Karaikal.STATE OF ART INFRASTRUCTURE Power Soaps has always stayed at the forefront of technology, innovation andquality built on a backbone of a strong infrastructure. State-of-art technology andequipment are the norm at every plant. Quality processes and the Best Practicesensure that what reaches each customer is world class quality at an affordable cost. The Company have their manufacturing plants at Sembiapalayam.Gummudipoondi, Periyapalayan, Silvassa and Karaikal. 14
  15. 15. This allows us to control the quality and maintain the consistency of products.The plants are manned by dedicated and efficient technical personnel with domainexpertise who keep operations moving smoothly. RESEARCH AND DEVELOPMENT R&D is an ongoing initiative and we have a full-fledged centre. A team works consistently to innovate and add value to the product line. The products are driven by innovation and technology and its this trait that endears us to our customers and helps us deliver products that are a cut above the rest.Quality Policy / Processes Power Soaps Limited has been certified with ISO 9001: 2000 by theInternational Certification Services for both manufacturing and supplying of detergentcakes, Powders, Toilet soaps and shampoos. Quality control policies to give the customers quality Products.The adherenceto ethical business practices and qualitative approach has given us an edge over theother leading organizations. Right from the initial stage of procurement of rawmaterial till the final delivery of the consignment, to undertake stringent qualitycontrol measures.Transport Company has its own Goods vehicle, which is used to transport finished goods to customer’s premises. Praveen Chem Industry being well connected with cities and National Highways and expressways; transportation of raw materials is easy.Company Name : Praveen Chem IndustryCountry : IndiaCity : KaraikalAddress : Praveen Chem Industry Keezhavanjore village, 15
  16. 16. Nagore Post ,Karailal-611002Managing Director : R.Siddha NadhanNature of Activity : Power and tyko Detergent soap, and detergent powderEstablished year : 1998No of workers : 523Financial Assistance : Working Capital & term Loan from Banks.Sales Turnover for theLastThree years : 2008-09 Rs.6.5 crores, 2009-10 Rs.7.75 Crores and 2010-2011 Rs 10.75 Crores.Marketing Network : A well Eshtablished Team of Executive Personnel Marketing Products in TamilNadu, Kerala and part of AndhraPradesh ,Bangalore ,Mumbai, Gujarat,Andrapradesh, MaharastraStaff Welfare Measure : Provide Subsized foods,Medical Facility and Hygienic WaterThe company contains the machine as • Refiners • Cutters • Stampers and • Wrappers • Bleaching • Drying • Finishing and Packing equipment • Crutchers • Atomisers 16
  17. 17. • Plodders • Roll Mills • Binding Management Certification : ISO 9001:2000Product ProfileRaw MaterialsRaw materials used for manufacturing Detergent soap are as under:  Washing soda  Acid Sullary  China clay  Dolomite  Sodium Silicate  Caustic Soda  Sodia acid  Sodium sulphateProcess Section The manufacturing of detergents is a complex process that involves differentactivities and processes. The size and complexity of these processes and activitiesmay range from small manufacturing plants that employ a small number of people tothose with hundreds and thousands of workers. products may range from all purposeproducts to that are used for specific application or requirement.Detergent BarsDetergent Production Equipment The detergent bar machinery makes solid washing blocks which are usedfor hand washing clothes in cold water, where there are high concentrations of 17
  18. 18. minerals in the water. These regions are typically South and Central America andCentral East Africa The equipment is visually similar to toilet soap machinery, but the design andcomponents are much stronger because detergents are much harder.We make the following Detergent Bar Machinery : • Detergent Bar Mixers • Detergent Bar Roll Mills • Detergent Bar Plodders • Detergent Bar Cutters • Detergent Bar StampersDetergent Powders Detergent Powder comes in two varieties, dense and light. Dense powdersWeigh over 500 grams per litre and are made by dry mixing ingredients together.Light powders are made by mixing a detergent slurry, then spraying droplets of slurryinto a rising column of hot air, which dries them to powder. We make Dense Powderproduction equipment.We make the following Detergent Powder Machinery • Batch Weighers • Screw Conveyors • Production Platforms • Batch Mixers • Mixed Powder Hoppers • Bagging and Sachet EquipmentFinishing 18
  19. 19. The final stage of soap manufacturing process, finishing stage involves mixing of additives, such as colors, preservatives, and perfume into soap, which is then shaped into bars for sale The conversion of soap noodles into finished product. This usually means adding perfume, colour and special ingredients. The ingredients are mechanically refined into the soap noodles, then extruded and stamped into toilet soap tablets.Finishing Equipment • Mixers • Simplex Plodders • Duplex Vacuum Plodders • Triplex Vacuum Plodders • Twin Screw Plodders • Refiners • Three Roll Mills • Electric Water Chillers • Elevating Conveyors • High Speed Billet Cutters • Single Blade Cutters • Chain Type Cutters • Bar Soap Roller Printers • Hotel Bar Roller Printers • Billet Feed Conveyors • Automatic Soap Stampers • Semi – Auto Stampers 19
  20. 20. • Manual StampersSoap Packaging Process The final stage of the detergents and soap manufacturing process is thepackaging. In this stage, the finished product is packed for final supply to consumer.During the packaging stage, bar soaps are either wrapped or cartooned in single packsor multipacks. Detergents, including household cleaners, dishwashing cleansers andlaundry cleansers are packaged in cartons, bottles, pouches, bags or cans. Packaging is one of most important steps in soaps and detergentsmanufacturing and hence should be given prime consideration by soap and detergentsmanufacturers. Some of the important benefits of soap packaging include • Enhances the marketability of product • Improves the appearance and attractiveness of product • Increases the shelf appeal of product • Increases the shelf life of product • Reduces the waste during production • Makes the product easy and convenient to use • The product can be packed in different sizes to meet the varying demands of consumers Soap manufacturers use different types of packaging products and solutions to make their products easy and convenient to use and to maximize the performance of product. Some of the soap packaging options that are used by companies in the soapand detergent industry are - • Small sachets - for offering products in very small quantity for one time use. Generally powder detergents and washing gels are offer in sachets. • Cartoons - Soaps and detergents are offered in cartoons for bulk supply. 20
  21. 21. • Poly packs - Soaps and detergents are offered in poly packs of different sizes to meet the varying demands of consumers. • Plastic bottles - Generally liquid detergents specialty spray cleansers are packaged in plastic bottles to make their usage convenient and effective. • Tubes - Tubes are most widely used for packaging personal care and cosmetic products. • Paper wrap - Soap bars are generally wrapped or cartooned in single packs or multi packs for the convenience of users.Soap Packaging Machines A variety of packaging machines is used by the soap and detergent industryfor superior and convenient packaging of the products. Some of the most commonpackaging machines used in soap and detergent industry are - • Soap wrapping machine • Soap and detergent filling machine • Sealing machine • Cutting machine • Horizontal form fill-sealing machine • Saponification section • Roller machine • Stamping machine • Mixer machine • Rotary sealing machine “Praveen Chem Industry “ Manufactures the following products asHome Care, Personal care, Soaps and Detergents with different brands.Home Care: 21
  22. 22. 1. Detergent Cake • Triple Power • Active Power • Hi Power • Power Jumbo • TykoTriple Power(Blue) Give your clothes lime freshness with this detergent cake that strips the dirtand leaves your clothes clean and fresh. Available in convenient sizes of 150 gms,300 gmsActive Power (Blue,Yellow) Get the stain fighters in this detergent work for you and make your life easier.A great wash with the least effort. Available in convenient size 200 gms. Blue skies and fresh clean spring days are back with this detergent. Theintensive citric cleansing agent leaves you feeling like you are wearing new clotheseveryday, Available in convenient sizes of 125gms, 200 gms, 250 gms, 300 gms.Hi Power(Blue, Yellow, Pink) The superb lathering formula gives your clothes the total clean that you arelooking for. Keeping your whites stunning and your coloured clothes dazzling.Available in convenient sizes of 125gms, 150 gms, and 250 gms. The rich lather penetrates into the pores of the fabric and brings out all thedirt. Great for whites and coloured clothes as well.Available in convenient sizes of125gms, 150 gms, and 250 gms. 22
  23. 23. The unique lathering formula help you give your clothes a clean wash quicklyand easily. Perfect to keep your whites looking sparkling white and coloured clothesbright. Available in convenient sizes of 125gms, 150 gms, and 250 gms.Power Jumbo(Blue,Yellow,Pink) Power Jumbo Blue has strong stain fighting agents that penetrate well into thefabric and eliminate dirt and grime with powerful action. This leaves yourclotheslooking fresh with a pleasant fragrance. Keeps colours bright..Available inconvenient sizes of 125gms, 200 gms, 250 gms, 300 gms. Power Jumbo Yellow has a sunny citrus cleansing agent that works its waydeep into fabrics and cleans them. Keeps colours bright and leaves a lingeringfragrance on clothes. Available in convenient sizes of 125gms, 200 gms, 250 gms,300 gms Power Jumbo Pink is the colour of perfect health. The ideal way to keep yourclothes free from germs and dirt. Leaves clothes with a plesant fragrance.. Availablein convenient sizes of 125gms, 200 gms, 250 gms, 300 gms Tyko(Blue,Yellow,Pink) Blue skies and fresh clean spring days are back with this detergent. Theintensive citric cleansing agent leaves you feeling like you are wearing new clotheseveryday, Available in convenient sizes of 125gms, 200 gms, 250 gms, 300 gms Bright yellow symbolises the sunny citrus cleansing agent that deep cleansfabrics and keeps colours true. Leaving a lingering fragrance on clothes. Available inconvenient sizes of 125gms, 200 gms, 250 gms, 300 gms Pink is the colour of perfect health. Keep your clothes free from germs anddirt with this detergent that helps you stay clean and hygienic. Available in convenientsizes of 125gms, 200 gms, 250 gms, 300 gms 2. Detergent Powder 23
  24. 24. • Triple power • Active Power • TykoTriple Power The Triple Power range of detergents and powders are formulated with limewhich is a powerful deep cleanser. It cleans the dirt besides leaving clothes fragrant.Triple Power Detergent Powder Unleash the awesome power of fresh lime to give your clothes a sparkling cleanwash. This detergent leaves your clothes fragrant and super clean. Priced perfectly tosuit your household budget. Available in 20gm sachets, 200 gms, 250 gms, 500 gmsand 1 kg packs.Active PowerActive Power Detergent Powder Active Power is packed with stain fighters that fight even tough dirt andgrime. These penetrate deep into the fabric to release even tiny dirt particles leavingclothes wonderfully clean. Unleash the awesome power of fresh lime to give your clothes a sparklingclean wash. This detergent leaves your clothes fragrant and super clean. Pricedperfectly to suit your household budget. Available in 20gm sachets, 200 gms, 250gms, 500 gms and 1 kg packs.TykoTyko Power Detergent Powder The convenience of an easy wash in every scoop of washing powder. Theintensive citrus cleansing agent simply blasts dirt to bits and leaves your whitessparkling white and keeps colours true. With a wonderfully fresh fragrance. Availablein 20gm, 200gm, 500gm and 1kg packs. 24
  25. 25. CHAPTER – IIREVIEW OF LITERATURE 25
  26. 26. 2.1 Review Of Literature Denhardt (1991) defines performance appraisal as a specific evaluation withrespect to an individual’s progress in completing specified tasks. Devries, Morrison, Shullman and Gerlach (1981) define performanceappraisal as a process by which an organization measures and evaluates an individualemployee’s behavior and accomplishments for a finite period. Moulder (2001) states that performance appraisals are valued for definingexpectations and measuring the extent to which expectations are met. She goes on tostate that appraisals can make clear to employees where they are having success andwhere they need to improve performance. 26
  27. 27. Moulder indicates that appraisals are useful in setting goals and in fosteringimproved communications among work groups and between employees andsupervisors. Before the 1960’s, performance evaluations were designed primarily as toolsfor the organization to use in controlling employees (Eichel and Bender, 1981). Eichel and Bender go on to state that past performance was used to guide orjustify management’s actions in dealing with the employee. At the time, according tothese authors, performance appraisal provided the basis for salary, retention,discharge, or promotional decisions. Over the past quarter century, the purpose of performance appraisal has shiftedfrom tools supporting the activities of management to an increasing trend towardspersonnel development (Eichel and Bender, 1984). Vroom (1990) states that formal performance appraisal plans can be designedto meet the following key needs:(a) The organization;(b) The supervisor; and(c) The employee. He stresses the need for effective evaluation as it can effectively serve thesecritical areas. ICMA (2005) states that almost all employees are eager to know how wellthey are doing in their jobs, but many dread the meetings in which their performanceis to be discussed. 27
  28. 28. 28
  29. 29. CHAPTER - III RESEARCH DESIGN RESEARCH METHODOLOGY According to Clifford woody research comprises of defining andredefining problems, formulating hypothesis suggested solutions, collecting, organizing andevaluating data, making deductions and reaching conclusions at last carefully testingthe conclusions to determine whether they fit the formulating hypothesis.RESEARCH DESIGN The research conducted is basically descriptive in nature in sense it attempts toportray accurately the characteristics of a particular individual’s situation or a group.3.1SCOPE OF THE STUDY This study is useful to know the strength and weakness of appraisal.Therefore, the management can update the system with necessary changes.This studyhelps in giving suggestion to improve the efficiency of the organization.3.2 NEED OF THE STUDY 29
  30. 30.  The management was in the position to know whether the existing performance appraisal system is effective or not.  To measure the satisfaction level of the employees.  To get suggestions from the employees for further improvement in existing performance appraisal system.  To contribute to the growth of the organization.3.3 OBJECTIVES OF THE STUDYPRIMARY OBJECTIVES  Measuring the effectiveness of the existing performance appraisal system.SECONDARY OBJECTIVES  To Study the performance appraisal system in the Praveen Chem Industry  To find out the satisfactory level of the employer about performance appraisal  The ways and means to improve the effectiveness of the existing performance appraisal system.3.4 SAMPLING METHOD Simple random sampling was used for choosing the sample3.5 SAMPLE SIZE To collect information from all respondents is difficult so the investigator has collected 52 samples.3.6 SOURCE OF DATA COLLECTION The data collected during the project comprises of 30
  31. 31.  PRIMARY DATA  SECONDARY DATAPRIMARY DATA Primary data are original sources from which the researcher directly collects data. The main source of primary was collected through questionnaire.SECONDARY DATA The secondary data are the sources containing data which have been collected and compiled for another purpose. • External data  Website  Books  Journals3.7 TOOLS USED FOR DATA COLLECTION • Percentage analysis • Weighted average • Chi square3.7.1PERCENTAGE ANALYSIS No of respondent Percentage = ×100 Total no of respondents 31
  32. 32. 3.7.2 WEIGH TED AVERAGE VALUE ∑WX Weighted average value = ∑W W=No of respondents X=Value (1, 2, 3, 4…..) W=Total respondents3.7.3 CHI SQUARE ∑ (O-E) 2 X2 = ∑E Oij=Observed frequency Eij= Expected frequency Row total ×Column total Eij= Grand total3.8 PERIOD OF STUDY The period of the study is from 1st January to 30th April . During this period theresearcher has collected the necessary primary data and other relevant informationneeded to carry out the study.3.9 AREA OF THE STUDY The study was conducted among the employees of Praveen Chem Industryin Karaikal.3.10 LIMITATIONS OF THE STUDY 1. The respondent attitude did not allow me to get their true feelings. 32
  33. 33. 2. Most of the respondent feared to give their name.3. Most of the employees were busy with their tight work and they don’t want to be disturbed.4. Employees are very limited and duration is limited. 33
  34. 34. CHAPTER – IV ANALYSIS & INTERPRETATION 4. ANALYSIS AND INTERPRETATIONS4.1Percentage analysisPercentage analysis is the method to represent raw streams of data as a percentage forbetter understanding of collected data. No of respondent Percentage = ×100 Total no of respondents 34
  35. 35. Table: 4.1.1 Age group of the worker SL.NO Age No of Respondents Percentage 1 20-30 8 15.3 2 30-40 10 19.2 3 40-50 13 25 4 50-60 15 28.3 5 60-70 6 11.5 Total 52 100Source: Primary data Figure: 4.1.1 Age group of the workerInference 35
  36. 36. From the above table 15.3% of employees fall under the age group of 20-30years. About 19.2% of employees are under the age group of 30-40 years. 25% ofemployees are comes under 40-50 years and 28.3% of employees are comes under 50-60 years and 11.5% of employees are above 60-70 years of age. Table: 4.1.2 Gender group of the workers SL.NO Gender No of respondents Percentage1 Male 35 672 Female 17 33 Total 52 100Source: Primary data Figure: 4.1.2 Gender group of the workers 36
  37. 37. InferenceThe above table shows that 67% of employees are Male 33% of employees arefemale. Table: 4.1.3 Educational qualification of the workers Educational SL.NO No of respondents Percentage qualification 1 SSLC 17 32.6 2 HSC 20 38.4 4 Graduate 15 28.8 Total 52 100Source: Primary data Figure: 4.1.3 Educational qualification of the workers 37
  38. 38. Source: Primary dataInference The above table reveals clear that about 32.6% of the employees have SSLCqualification and 38.4% of employees have HSC qualification and 28.8% havecompleted their Graduate course. Table: 4.1. 4 Experience of the workersSL.NO Experience No of respondents Percentage1 Below 5 years 16 30.72 5-10 17 32.63 10-16 19 36.5 Total 52 100Source: Primary data Figure: 4.1.4 Experience of the workers Experience of the workers 38
  39. 39. Inference From the above table we infer that 30.7 % of the employees have below 5years of experience and 32.6 % of the employees have experience between 5-10years, 36.5 % of the employees have the experience between 10-16 years Table: 4.1.5 Income level of the workersSL.NO Income No of respondents Percentage1 3000&above 14 272 5000&above 15 293 10000&above 23 44 Total 52 100Source: Primary data Figure: 4.1.5 Income level of the workers 39
  40. 40. InferenceThe above table denotes 27% of employees earns above rupees 3000 as a monthlyincome. 29% of employees earn above 6000 rupees and 44% of employees earn above10000 rupees as salary Ways and Means to improve the Existing performance Appraisal system Table 4.1.6 40
  41. 41. The table shows the way in which the performance appraisal system helps in the future growth Way it helpsPAS helps No of Respondents % valueforfuture growthGet Increments 25 49Improve the Quality of 12 23workMotivates for future growth 14 26PAS does not work 1 2Total 52 100 Figure 4.1.6 Helps in the future growth Inference Among 52% of the employees, 49 % of employees said that performance appraisal helps them to get increments. 26 % said that the performance appraisal help for the future growth 23 %of employees said that improve the quality of work .2% of employee said that performance appraisal does not help for the future growth Table 4.1.7 41
  42. 42. The table shows the way in which the training program helps Way it helps Once Twice Thrice More than % % in a in a in a % value thrice in a % value Training value value year year year year program helpsHelps to increase the 15 28.8 20 38.5 15 28.5 17 32.7productivity Helps to increase the 35 67.4 20 38.5 17 32.7 20 38.7qualityHelps to improve the 2 3.8 12 23 20 38.5 15 28.8health and safetyGrand total 52 100 52 100 52 100 52 100 Figure 4.1.7 Training program helps Among 52% of employees 67.4% of employees said that the training is conducted once in a year and it helps to increase the quality .38.5% of employees said that the training is conducted twice a year and it helps increase the productivity and it helps to increase the quality.38.5 % of employees said that the training s conducted thrice a year and it helps for improve the health and safety.37.8 % employees said that the training is conducted more than thrice a year and it helps to increase the quality. 42
  43. 43. Table 4.1.8 The table shows the Self Improvement Appraisal systemImprovement After PAS No of Respondents %value yes 47 90.4 No 5 9.6 Grand total 52 100 Figure 4.1.8 The Self Improvement Appraisal systemInference90.4 % of employees tell that they had improved themselves after the appraisal and9.6 % of has not improved in program Table 4.1.9 The Table shows the Parameters included in the performance appraisal system Parameters No of Respondents % Value Dependability 40 76.9 Interpersonal skill 12 23.1 Grand Total 52 100 43
  44. 44. Figure 4.1.8 The Parameters included in the performance appraisal systemInference 79.9% said that dependability 23.1 % said that the parameter interpersonalSkill is to be included in the appraisal form Table 4.1.9 The table shows the level of communication and transparency 44
  45. 45. No of respondents Transparency Communication Yes % Value Partly % Value No % Value Yes 46 88.5 17 32.6 30 57.6 No 6 11.5 35 67.3 22 42.3 Grand Total 52 100 52 100 52 100 Figure 4.1.9 The level of communication and transparency Inference 88.5 % said that the system is transparanent and there is proper communication regarding the negative remarks.The company has to increase the level of commnunication regarding the negative marks . 32.6 % said that the system is partly transparent and 57.6% said that not transparent and there is no communication regarding the negative remarks. Table 4.1.10 The table shows the Level of changes After the Negative Remarks Quoted Level of Changes No. Of. Respondents % ValueYes 41 78.8May be 6 11.6 45
  46. 46. No 5 9.6Grand total 52 100 Figure 4.1.10 The Level of changes After the Negative Remarks Quoted Inference 78.8 % said yes and they have changed themselves after telling their negative remarks. The company is responsible to make changes in the employees after the appraisal. Only 11.6% of the employees said that may be they would not change themselves after the negative remarks. 9.6 % of employees said that no changes . Table 4.1.11 The table shows the clarification about the Negative marks 46
  47. 47. Parameters Benefit/ChanceClarification Yes % Value No % ValueYes 48 92.3 2 40N0 4 7.7 3 60Total Value 52 100 5 100 Figure 4.1.11 The clarification about the Negative marksInference 92.3% said that they had got chance for further clarification and they gotbenefit by it. 60% Employees said that does’nt have any benefit or clarification .Theorganization has to tell about what are benefits they will get after appraisal, so that thelevel of employees can increased. Table 4.1.12 The table shows Matching the related parameters and Measuring the satisfaction level using simple percentage method 47
  48. 48. Name of the Yes No May beParameters parameter % % % Training Program 40 60 - I Future Growth 94 6 - Improvement 90 10 - II Try to Change 78.8 11.6 9.6 Transparency 88.5 11.5 - III Further 92.3 7.7 - Clarification Figure 4.1.12 Measuring the satisfaction level using simple percentage method Approximately more than 90% of the employees are satisfied with the above- mentioned parameters. Around 5% of the employees are highly satisfied for only few parameters. Around 4% of the employees are dissatisfied for few parameters mentioned above. Only 3 of the highly dissatisfied for the parameter company policies. 4.2 WEIGHTED AVERAGE An average in which each quantity to be averaged is assigned a weight. These weightings determine the relative importance of each quantity on the average. Weightings are the equivalent of having that many like items with 48
  49. 49. the same value involved in the average. ∑WX Weighted average value = ∑W W=No of respondents X=Value (1, 2, 3, 4…..) W=Total respondents Table: 4.2.1 Measurement towards the Punctuality and Discipline Particulars HS S N DS HDS WAMeasurement through 27 10 10 1 4 4.05Proper Record KeepingNature of the Appraiser 10 10 7 5 20 2.71It help for the future 10 17 13 4 8 3.32growth HS- Heighly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS-Highly Dissatified WA: Weighted Average Source: Primary data Figure: 4.2.1 Measurement towards the Punctuality and Discipline 49
  50. 50. Inference In the above table infers that 4.05 % of employees are highly satisfied by ithelps for the future growth and 3.32 % of employees are satisfied in measurementthrough proper record keeping 2.71 % highly dissatisfied in the nature of theappraiser. Table: 4.2.2 Measurement of job knowledge, Quality of work Particulars HS S N DS HDS WAHandling of Work 2 10 20 13 7 2.75IndependentilyAchievements based on 25 16 3 6 2 4.07org. goalIt help for the future 10 25 5 4 8 3.48growthPersonal interest 2 7 10 4 29 2.01contributing to org. goal HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS-Highly Dissatified WA: Weighted Average Source: Primary data Figure: 4.2.2 Measurement of job knowledge, Quality of work 50
  51. 51. Inference In the above table infers that 4.07 % of employees are highly satisfied inachievements based on org goal and 3.48 are satisfied it helps for future growth 2.75are neutral in handling of work independently 2.01 are highly dissatisfied personalinterest contributing to org goal. Table: 4.2.3 Measurement of writing and oral abilities Particulars HS S N DS HDS WAMeasurement through 27 20 4 - 1 4.38addressing the meetingsProper record keeping 15 25 5 4 3 3.86Nature of the Appraiser 5 6 9 15 17 2.36It help for the future growth 6 3 24 10 9 2.78 HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS- HighlyDissatified WA: Weighted Average Source: Primary data Figure: 4.2.3 Measurement of writing and oral abilities 51
  52. 52. Inference In the above table infers that 4.38 % of employees are highly satisfied inmeasurement through addressing the meetings 3.86 are satisfied in proper recordkeeping 3.78 are neutral for its future growth 2.36 are highly dissatisfied in natureof the appraiser . Table: 4.2.4 Measurement towards the learning and communication abilities Particulars HS S N DS HDS WACoordination among the 10 5 17 9 11 2.88employeesWillingness to learn the job 10 19 2 10 11 3.21Nature of the Appraiser 3 12 11 11 15 2.55It help for the future growth 20 17 1 5 9 3.65 HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS-Highly Dissatified WA: Weighted Average Source: Primary data Figure 4.2.4 Measurement towards the learning and communication abilities 52
  53. 53. Inference In the above table infers that 3.65 % of employees are highly satisfied in helpsfor future growth 3.21 are satisfied in willingness to learn the job 2.88 are neutral incoordination among the employees 2.55 are highly dissatisfied in nature of theappraiser . Table: 4.2.5 Measurement of accepting and implementing change Particulars HS S N DS HDS WAHigher Authorities referrred 15 3 20 5 9 3.19Taking immediate action 5 7 9 14 17 2.40Proper record keeping 10 10 2 15 15 2.17Referring the manual 2 16 19 5 10 2.90It help for the future growth 20 16 6 7 3 3.82Nature of the appraiser 15 19 6 2 10 3.59 HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS-Highly Dissatified WA: Weighted Average Source: Primary data Figure 4.2.5 53
  54. 54. Measurement of accepting and implementing changeInference In the above table infers that 3.82 % of employees are highly satisfied in helpsfor future growth 3.59 are satisfied in nature of the appraiser 3.19 are neutral inHigher authorities reffered 2.90 dissatisfied in referring the manual and 2.71 and 2.40highly dissatisfied in proper record keeping and taking immediate action . Table: 4.2.6 Measurements of Absenteeism Rate Particulars HS S N DS HDS WAReport Timing 25 18 5 1 3 4.17Proper record keeping 10 20 5 9 8 3.28Nature of the appraiser 10 7 23 5 7 3.15It help for the future growth 1 17 12 2 20 2.55 HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS-Highly Dissatified WA: Weighted Average Source: Primary data Figure 4.2.6 54
  55. 55. Measurements of Absenteeism RateInference In the above table infers that 4.17 % of employees are highly satisfied inproper timing 3.28 are satisfied in proper record keeping 3.15 are neutral in nature ofthe appraiser 2.55 dissatisfied in helps for the future growth Table: 4.2.7 Measurements of Flexibility Particulars HS S N DS HDS WAProper record keeping 5 10 5 15 17 2.44Nature of the appraiser 11 18 2 14 7 3.23It help for the future growth 25 9 7 7 4 3.84 HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS-Highly Dissatified WA: Weighted Average Source: Primary data Figure 4.2.7 Measurements of Flexibility 55
  56. 56. Inference In the above table infers that 3.84 % of employees are highly satisfied for ithelps for future growth 3.23 are satisfied in nature of the appraiser 2.44 highlydissatisfied in proper record keeping Table 4.2.6 Measurement of Personal grooming Particulars HS S N DS HDS WAMeasure the personality 27 22 - 1 2 4.36Interest toward the job 10 11 10 11 10 3Proper record keeping 11 5 9 10 17 2.67It help for the future growth 17 20 6 7 2 3.82Nature of the appraiser 12 8 15 10 7 3.30 56
  57. 57. HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS-Highly Dissatified WA: Weighted Average Source: Primary data Figure 4.2.8 Measurement of Personal groomingInference In the above table infers that 4.36 % of employees are highly satisfied tomeasure the personality 3.82 are satisfied in helps for the future growth 3.30 neutrallyin nature of the appraiser 3 dissatisfied in interest towards the job 2.67 highlydissatisfied in proper record . Table 4.2.9 Measurement of company policies Particulars HS S N DS HDS WAExisting Measurement and 15 12 7 8 10 3.26policiesIt help for the future growth 20 17 5 3 7 3.76Nature of the appraiser 11 12 5 10 14 2.92 57
  58. 58. HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatified, HDS-Highly Dissatified WA: Weighted Average Source: Primary data Figure 4.2.9 Measurement of company policiesInference 3.76 of employees are highly satisfied it helps for the future growth 3.26 areexisting measurement and policies 2.92 are dissatisfied it for the nature of theappraiser Table 4.2.10 Measurement of Computer Skills. 58
  59. 59. Particulars HS S N DS HDS WAExisting Measurement and 12 15 10 7 8 3.30skillsIt help for the future 20 17 10 2 3 3.94growthNature of the appraiser 10 2 8 10 22 2.38 HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS-Highly Dissatified WA: Weighted Average Source: Primary data Figure 4.2.10 Measurement of Computer Skills.Inference In the above table infers that 3.94 % of employees are highly satisfied for ithelps for the future growth 3.30 satisfied among the existing measurement andobjectivity 2.38 highly dissatisfied among the nature of appraiser. Table 4.2.11 Measurement of Guest Relation Particulars HS S N DS HDS WAExisting Measurement and 18 15 59 10 2 7 3.67objectivityIt help for the future 20 20 9 2 1 4.07growthNature of the appraiser 15 4 15 13 5 3.21
  60. 60. HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS-Highly Dissatified WA: Weighted Average Source: Primary data Figure 4.2.11 Measurement of Guest RelationInference In the above table infers that 4.07% of employees are highly satisfied for ithelps for the future growth 3.67satisfied among the existing measurement andobjectivity 3.21 neutraly satisfied among the nature of appraiser Table: 4.2.12 Parameters to measuring the satisfaction level of employees using weighted Average Particulars HS S N DS HDS WAWrite and oral 27 20 4 - 1 4.38Job knowledge 25 16 3 6 2 4.07 60
  61. 61. Punctuality and 27 10 10 1 4 4.05diciplineAbsenteeism 25 18 5 1 3 4.17Guest Relation 20 20 9 2 1 4.07Personal Grooming 27 22 - 1 2 4.36Implement change 20 16 6 7 3 3.82Flexibility 19 19 3 7 4 3.80Learn and 20 17 1 5 9 3.65communicationCompany policies 20 17 5 3 7 3.76 HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS-Highly Dissatified WA: Weighted Average Source: Primary data Figure 4.2.12 Parameters to measuring the satisfaction level of employees using weighted Average 61
  62. 62. Inference In the above table infers that 4.38 % of employees are highly satisfied inwriting and oral in performance appraisal system among the company (4.36) personalgrooming and (4.07) guest relation and (4.05) Punctuality and discipline and (4.07)job knowledge are Satisfied by the appraisal system in their working organization ()flexibility (3.80) company policies are neutral about their working organisation (3.82)implement change are dissatisfied4.3 CHI SQUARE TESTS Chi square test is applied in statistics to test the goodness of fit to verify thedistribution of observed data with assumed theoretical distribution. ∑ (O-E) 2 X2 = ∑E Oij=Observed frequency 62
  63. 63. Eij= Expected frequency Row total ×Column total Eij= Grand total Degrees of freedom = (R-1) (C-1) Level of significance is 5% Table: 4.3.1 Relationship between Age level of employees and Ability to accept, implement the change and plan to make decisionLevel Age 20-30 30-40 40-50 50-60 60-70Of satisfactionHigh 1 2 1 2 2Medium 1 7 6 12 3Low 6 1 6 1 1Null Hypothesis: The age level of employees doesnot influence the ability toaccept ,implement the change and plan to take decisionAlternative Hypothesis: The age level of employees influence the ability to accept,implement the change and plan to take decision.The tabulated value x2 at 5% level of significance is 9.49 O E O-E (O-E)2 (O-E)2/E Yates correction 1 0.3 0.7 0.5 1.7 0.13 2 1.5 0.5 0.3 0.2 0 1 2 -1 1 0.5 1.12 2 2.3 -0.3 0.1 0.04 0.27 2 0.9 1.1 1.2 1.3 0.4 1 4.5 -3.5 12.3 3 3.5 63
  64. 64. 7 5.6 1.4 2 0.4 0.14 6 7.3 -1.3 1.7 0.23 0.44 12 8.4 3.6 13 1.5 1.14 3 3.3 -0.3 0.1 0.03 0.19 6 2.3 3.7 13.7 5.6 4.5 1 2.9 -1.9 3.6 1.2 2 6 3.8 2.2 4.8 1.3 1.9 1 4.3 - 3.3 11 2.6 0.8 1 1.7 - 0.7 0.5 0.3 3.35 ∑2 = 19.8Degrees of freedom =(R-1) (C-1) =8Conclusion The tabulate value =15.5 is less than the calculated value 19.8.so there is noRelationship between the Age level of employees to ability to accept implement thechange and plan to make decision. Table 4.3.2 Relationship between Education and ability to learn and Communicate Education SSLC HSC GRADUATE Level of Satisfaction High 12 5 7 Medium 3 5 7 Low 2 10 1 64
  65. 65. Null Hypothesis: The education level of employees does not influence of employeesinfluence the ability to learn and communicateAlternative Hypothesis: The education level of employees influence the ability tolearn and communicateThe tabulated value of x2 at 5% level of significance is 9.49 O E O-E (O-E)2 (O-E)2/E Yates correction 12 7.8 4.2 17.6 2.25 1.8 5 9.2 -4.2 17.6 2.25 2.4 7 7 0 0 0 0.03 3 5 -2 4 0.8 1.25 5 5.8 -0.8 0.64 0.1 0.3 7 4.3 2.7 7.2 1.7 1.12 2 4.2 -2.2 5 1.2 1.4 10 5 5 25 5 4.05 1 3.8 -2.8 8 2.1 2.9 ∑2 = 15.25Degrees of freedom =(R-1) (C-1) =4Conclusion The tabulate value = 9.488 is less than the calculated value 15.25.Sothere is no Relationship between the education level of employees in ability to learnand communicate Table 4.3.3Relationship between Experience and Job Knowledge, Quality of work, Time of work 65
  66. 66. Experience Below 5 yrs 5-10 10-16 Level of satisfaction High 10 6 13 Medium 5 6 1 Low 1 5 5Null Hypothesis: The Experience of employees doesnot influence the JobKnowledge,quality of work,Time of workAlternative Hypothesis: The Experience of employees influence the JobKnowledge,quality of work,Time of workThe tabulated value of x2 at 5% level of significance is 9.49O E O-E (O-E)2 (O-E)2/E Yates correction10 9 1 1 0.1 0.02 6 9.5 -3.5 12.2 1.3 1.713 10.6 2.4 5.8 0.5 0.3 5 3.7 1.3 1.7 0.5 0.17 6 4 2 4 1 0.6 1 4.4 -3.4 11.6 2.6 3.5 1 3.4 -2.4 5.8 1.7 2.5 5 4 1 1 0.25 0.06 5 4.01 1 1 0.24 0.062 ∑2=8.91Degrees of freedom =(R-1) (C-1) =4Conclusion 66
  67. 67. The tabulate value = 9.488 is less than the calculated value 8.912. So there isno relationship between the Experience Level of Employees in job knowledge qualityof work and time of work. CHAPTER – V FINDINGS, SUGGESTIONS & CONCLUSION 67
  68. 68. CHAPTER 5FINDINGS • 29% of employees are comes under 50-60 years of age • 38% of employees have HSC qualification • 37% of the employees have the experience level between 10-16 years. • 44% of the employees have the income level from 10000 & above • 25 % of employees said that get increments for the way in which the Performance Appraisal System helps for Future Growth. • 35 % 39 %, 38% of employees said that The way in which the Training Program helps in once a year,twice a year,and thrice a year. • 47% employees satisfied with the Self-Improvement after the Performance Appraisal System. 68
  69. 69. • The parameter used Dependability of PAS as 40 % of employees are satisfied• 46 % of employees said that the system is transparent and there is proper communication regarding the negative remarks• 46 %said that they have changed themselves after telling their negative remarks• 48% said that they had got chance for further clarification and they got benefit by it.• 49% of the employees said that performance appraisal helps for future growth. 46 % of the employees said that the system is transparent. 48% said that there is chance for further clarification. Around 47 % said that they would try to change themselves after the negative remark quotated in the appraisal form• The weighted average value says that 4.05 % of employees are highly satisfied with their Punctuality and discipline and 3.32% of employees are satisfied it helps for future growth• The weighted average value says that 4.07 % of employees are highly satisfied with thei job knowledge and 3.48 % of employees are satisfied it helps for future growth• The weighted average value says that 4.38 % of employees are highly satisfied with their learning and communication and 3.86 % of employees are satisfied• The weighted average value says that 3.65 % of employees are highly satisfied with their learning and communication abilities and 3.21 % of employees are satisfied in willingness to learn the job• The weighted average value says that 3.82 % of employees are highly satisfied with their implementing the change and 3.59 % of employees are satisfied in nature of the appraiser.• The weighted average value says that 4.17 % of employees are highly satisfied with their ansenteeism rate and 3.28 % of employees are in proper record keeping . 69
  70. 70. • The weighted average value says that 4.05 % of employees are highly satisfied with their writing and oral abilities and 3.32 % of employees are satisfied it helps for future growth• The weighted average value says that 3.84 % of employees are highly satisfied with their flexibility and 3.23 % of employees are satisfied in nature of the appraiser.• The weighted average value says that 4.36 % of employees are highly satisfied with their personal grooming and 3.82 % of employees are satisfied it helps for future growth• The weighted average value says that 3.76 % of employees are highly satisfied with their company policies and 3.26 % of employees are satisfied in existing in objectivity• The weighted average value says that 3.94% of employees are highly satisfied with their computer skills and 3.30 % of employees are satisfied it helps for future growth• The weighted average value says that 4.07 % of employees are highly satisfied with their guest relation and 3.21% of employees are satisfied in nature of the appraiser.• 4.38 % of employees are highly satisfied in writing and oral in performance appraisal system among the company (4.36) personal grooming and (4.07) guest relation and (4.05) Punctuality and discipline and (4.07) job knowledge are Satisfied by the appraisal system in their working organization () flexibility (3.80) company policies are neutral about their working organisation (3.82) implement change are dissatisfied• The Chi square test says that there is no Relationship between the Age level of employees to ability to accept implement the change and plan to make decision.• The chi square test says that there is no Relationship between the education level of employees in ability to learn and communicate 70
  71. 71. • The Chi square test says that there is no relationship between the Experience Level of Employees in job knowledge quality of work and time of work. SUGGESTIONS In order to improve the performance level of employees the organization should create more awareness and to provide feedback regularly to the employees about performance appraisal system. Proper training should be given to the employees, in order to increase their knowledge about the usefulness of the appraisal system. Top management shall continually review the appraisal conducted, which shall be seen as positive support to the system by the appraiser as well as appraisees, and their interest will be maintained. 71
  72. 72.  After appraisal program if there is any improvement, the employees should be motivated by Promotion, Increments etc. CONCLUSION The study had confirmed that the company is having a good Performance Appraisal System. From this study, it is found that majority of the workers were satisfied with the Performance Appraisal System. To make the performance appraisal system more efficient and excellent, the company should give importance to the employees and create awareness among employees and it shall consider some of the ways and means suggested by the employees like addition of parameters such as Interpersonal skill, dependability and conducting regular training program on the appraisal system. I hope that the suggestion given in the report may be implemented in future course for the benefit of the workers and the company. 72
  73. 73. The company should conduct the similar type of research at regular interval to know the changing attitude of workers and to know about their improvement in order to motivate them. BIBLIOGRAPHYWebsites 1. www.PerformanceAppraisal.com 2. www.HRlibrary.com 3. www.appraisal .org.comBOOKS 1. Research methodology By -C.R. Kothari2. Statistics By- R.S.N. Pillai 73
  74. 74. V. Bhagavathi3. Human Resource Management By -John M Ivancevich4. Human Resource Management By- Biswajeet pattanayak5. Human Resource Management By -K. Aswathappa6. Human Resource Management By Snell Bohlander APPENDIX 74
  75. 75. APPENDICES “A STUDY ON THE EFFECTIVENESS OF THE EXISTING PERFORMANCE APPRAISAL SYSTEM” – In Praveen chem Industry, Karaikal. QUESTIONNAIREPERSONAL DETAILS1) Name:2) Designation:3) Age: a) 20-30 b) 30-40 c) 40-50 d) 50-60 e) 60-704) Gender: a) Male b) Female5) Educational qualification: a) SSLC b) HSC c) Graduate6) Experience: a) Below 5 years 75
  76. 76. b) 5-10 years c) 10-16 years7) Income: a) 3000 & above b) 6000 & above c) 8000 & above1)Are you satisfied with the method used to measure the Punctuality and Discipline in theexisting performance appraisal system? Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied2) Are you satisfied with the method used to measure the Job Knowledge, Quality ofWork, Effective Time at Work and Attitude towards Work in the existingperformance appraisal system? Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied3. Are you satisfied with the method used to measure the Writing and Oral abilities inthe existing performance appraisal system? Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied4. Are you satisfied with the method used to measure the Ability to Learn andCommunicate in the existing performance appraisal system? Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied 76
  77. 77. 5)Are you satisfied with the method used to measure the Ability to Accept, Implementthe Change, to For See Problem and Plan and to take Decision at Short Notice in theexisting performance appraisal system? Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied6) Are you satisfied with the method used to measure the Absenteeism Rate in theexisting performance appraisal system? Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied7.Are you satisfied with the method used to measure the Flexibility in the existingperformance appraisal system? Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied8.Are you satisfied with the method used to measure the Personal Grooming in theexisting performance appraisal system? Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied 77
  78. 78. 9)Are you satisfied with the method used to measure the Knowledge on the Companypolicies in the existing performance appraisal system? Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied10). Are you satisfied with the method used to measure the Education and ComputerSkills in the existing performance appraisal system? Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied11.Are you satisfied with the method used to measure the Guest Relation in theexisting performance appraisal system? Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied WAYS AND MEANS TO IMPROVE THE EXISTING PERFORMANCE APPRAISAL 12. Do you think that performance appraisal system help for the future growth? Yes No 13. After the appraisal program is any training program conducted. Yes No 78

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