Performance Appraisal Project for Omkar Products

University of Mumbai
D. S. Gavankar College of Commerce, Sawantwadi 1
PERFORMANCE APPRAISAL IN HRM

A
PROJECT REPORT
ON
“PERFORMANCE APPRAISAL IN HRM”
WITH REFERENCE TO
OMKAR PRODUCTS
SAWANTWADI
PROJECT REPORT SUBMITED
TO
UNIVERSITY OF MUMBAI
IN THE PARTIAL FULFILMENT OF AWARD OF
SEMESTER V
BACHELOR OF MANAGEMENT STUDIES
BY
POOJA RAVAJI PARAB
UNDER THE GUIDENCE OF
PROF. Y. M. GAVAS
(M.COM, MMS, DIP. IN H.R.D)
DESHBHAKTA SHANKARRAO GAVANKAR COLLEGE
OF COMMERCE,
SAWANTWADI
2016 - 2017

AKNOWLEDGEMENT
I wish to express my deep sense of gratitude towards the person
who has guided me.
I thank heartily to Mr. Y.M.GAWAS because of giving timely
solutions and guidance to me for completing the project and thanks to
Miss. Parab Madam.
I also express my gratitude towards Mr. Y.M.GAWAS for his
valuable guidance, encouragement and suggestion while conducting the
study. I am indebted to the staff member for their whole hearted co-
operation during my training.
I also thank to my friends for co-operative with me.
I thank the institute, library, and office staff for their co-operation
& help lastly; I convey my salutation to the almighty for enabling me to
take up & completing this project without any problem.
Thanks,
STUDENT NAME
(MISS. POOJA RAVAJI PARAB)

DECLEARATON
I undersigned, hereby declare that the project report on
“PERFORMANCE APPRAISAL IN HRM” developed and submitted by
me under the guidance of Prof. Yashodhan M. Gavas.
This is my original work. The empirical findings in this report are
based on the data collected by me. The matter presented in this report is
not copied from any source.
I understand that any copy is liable to be punished in any way the
University authorities deem to fit. This work has been submitted for the
partial fulfillment of Bachelor of Management Studies to University of
Mumbai.
Place-
Date-
Signature
(Pooja Ravaji Parab)

INDEX
SR NO. PARTICULARS PAGE NO.
1 Introduction to project
2 Company profile
3 Theoretical background
4 Practical research
5 Interpretation of data
6 Appendix, Images, Questioner
7 Findings & Suggestion
8 Conclusion
9 Bibliography & Webliography

CHAPTER NO.
1
INTRODUCTION

 INTRODUCTION HUMAN RESOURCE
MANAGEMENT (HRM)
Human Resource Management includes conducting job
analyses, planning personnel needs, recruiting the right people for the
job, orienting and training, managing wages and salaries, providing
benefits and incentives, evaluating performance, resolving disputes,
and communicating with all employees at all levels. Examples of core
qualities of HR management are extensive knowledge of the industry,
leadership, and effective negotiation skills.
Human Resource Management is the process of recruitment,
selection of employee, providing proper orientation and induction,
providing proper training and the developing skills, assessment of
employee (performance of appraisal), providing proper compensation
and benefits, motivating, maintaining proper relations with labor and
with trade unions, maintaining employee‟s safety, welfare and health
by complying with labor laws of concern state or country.
 DEFINITION-
HRM is planning, organizing, directing & controlling of the
procurement, development, compensation, integration, maintenance &
separation of human resources to the end that individual,
organizational & social objectives are accomplished.
 OBJECTIVES OF HRM-
1. To help the organization to attain its goals effectively and
efficiently by providing competent and motivated employees.
2. To utilize the available human resources effectively.

3. To increase to the fullest the employee‟s job satisfaction and self-
actualization.
4. To develop and maintain the quality of work life (QWL) which
makes employment in the organization a desirable personal and
social situation.
5. To help maintain ethical policies and behavior inside and outside
the organization.
6. To establish and maintain cordial relations between employees and
management.
7. To reconcile individual/group goals with organizational goals.
 FEATURES OF HRM-
1. Human Resource Management Is a Management of an
Individual
Human resource management is concerned with people
dimension of management. Hence it manages different people such
as worker/labor, supervisors, managers, departmental heads and
other related top managers too. Therefore, human resource
management is defined as the management of human resource and
their commitment towards work.
2. Human Resource Management Is a Continuous Process
Human resource management is not a shot affair; rather it is
an ongoing process of managing people and their competencies. It
is continued till the dissolution of an organization. All the
processes involved in HRM should run continuously.

3. Human Resource Management Is a Dynamic Function
The principles and practices of HRM should not be rigid.
Rather they should be dynamic. It means HRM is a dynamic
function whereby the procedures and practices are influenced by
the environmental factors. Employees should gain an updated
knowledge and ability to work in the changing environment.
4. Human Resource Management Is a Universal Function
HRM is a universal function in the sense that it is applicable
in all types of organizations. The principles and practices are
applied irrespective of size, nature, scope and purpose of the
organization.
5. Human Resource Management Is A Strategic Approach
HRM is taken as strategic approach for organizational
development. It helps to mobilize human resource in the
organization in order to achieve the stated goals and objectives
strategically. All the activities of management are arranged in such
a way that they are interconnected with efficient and effective
utilization of human resources according to change in
organizational strategy.
6. Integration of Goals
Usually there is a goal difference between organizational
goal and individual goal. An employee wants to satisfy his/her
individual goal first. But managers want to accomplish
organizational goals before something else. Hence, HRM practices
and principles help in integrating individual and organizational
goal into a framework. As a result of which, employees are

motivated towards higher level work performance for achievement
of organizational goal.
7. Human Resource Management Is Future-oriented
HRM is future oriented behavior in the sense that it helps in
assessing human resource requirement for future. It helps in
determining future goals and objectives of the organization and its
employees the people to get the job done in future period of time.
 MEANING PERFORMANCE APPRAISAL
The performance appraisal is the process of assessing
employee performance by way of comparing present performance
with already established standards which have been already
communicated to employees, subsequently providing feedback to
employees about their performance level for the purpose of improving
their performance as needed by the organization.
The performance appraisals are essential for the effective
management and evaluation of staff. Appraisal helps develop
individuals, improve organizational performance and feel into
business planning. Formal performance appraisals are generally
conducted annually for all staff in the organization staff. Performance
appraisals also establish individual training needs and enables
organizational training needs analysis and planning. Performance
appraisals are also essential for career and succession planning.
Performance appraisals are also important for staff motivation,
attitude and behavior development communicating organizational
aims and fostering positive relationships between management and
staff.

 DEFINITION-
1. "It is the process of evaluating the performance and qualifications
of the employees in terms of the requirements of the job for which
he is employed, for purposes of administration including
placement, selection for promotions, providing financial rewards
and other actions which require differential treatment among the
members of a group as distinguished from actions affecting all
members equally."
2. "Performance appraisal is systematic evaluation of the individual
with respect to his or her performance on the job and his or her
potential for development".
 OBJECTIVES OF PERFORMANCE APPRAISAL
1. Providing Feedback.
Providing feedback is the most common justiﬁcation for an
organization to have a performance appraisal system. Through its
performance appraisal process the individual learns exactly how
well he/she did during the previous twelve months and can then
use that information to improve his/her performance in the future.
In this regard, performance appraisal serves another important
purpose by making sure that the boss‟s expectations are clearly
communicated.
2. Facilitating Promotion Decisions.
Almost everyone in an organization wants to get ahead.
How should the company decide who gets the brass rings?
Performance appraisal makes it easier for the organization to make

good decisions about making sure that the most important
positions are ﬁlled by the most capable individuals.
3. Downsizing Decisions.
If promotions are what everybody wants, layoffs are what
everybody wishes to avoid. But when economic realities force an
organization to downsize, performance appraisal helps make sure
that the most talented individuals are retained and to identify poor
performers who effects the productivity of the organization.
4. Motivating Superior Performance.
This is another classic reason for having a performance
appraisal system. Performance appraisal helps motivate people to
deliver superior performance in several ways. First, the appraisal
process helps them learn just what it is that the organization
considers to be „„superior.‟‟
5. Setting and Measuring Goals.
Goal setting has consistently been demonstrated as a
management process that generates superior performance. The
performance appraisal process is commonly used to make sure that
every member of the organization sets and achieves effective
goals.
6. Counseling Poor Performers.
Not everyone meets the organization‟s standards.
Performance appraisal forces managers to confront those whose
performance is not meeting the company‟s expectations.

7. Determining Compensation Changes.
This is another classic use of performance appraisal. Almost
every organization believes in pay for performance. But how can
pay decisions be made if there is no measure of performance?
Performance appraisal provides the mechanism to make sure that
those who do better work receive more pay.
8. Supporting Manpower Planning.
Well-managed organizations regularly assess their bench
strength to make sure that they have the talent in their ranks that
they will need for the future. Companies need to determine who
and where their most talented members are. They need to identify
the departments that are rich with talent and the ones that are
suffering a talent drought. Performance appraisal gives companies
the tool they need to make sure they have the intellectual
horsepower required for the future.
9. Improving Overall Organizational Performance.
This is the most important reason for an organization to have
a performance appraisal system. A performance appraisal
procedure allows the organization to communicate performance
expectations to every member of the team and assess exactly how
well each person is doing. When everyone is clear on the
expectations and knows exactly how he is performing against
them, this will result in an overall improvement in organizational
success.

CHAPTER NO.
2
COMPANY PROFILE

COMPANY PROFILE
 Name- Omkar Products
 Establishment Year- 1993
 Name of Owner- Pradeep G. Shevade
 Address of Company- Plot No.12, Udyamnagar, Majgaon,
Sawantwadi, Sindhudurg, Maharashtra, 416510.
 Logo-
 History-
We are into this business from past 20 years. Our deep study
on fruits has taken us to the top. Our „Omkar Products‟ has achieved
heights in local as well as in various parts of the nation. As we were
producing on large scale we tried our best to maintain our each
products quality because of which we were certified by international
organization for standardization (ISO).
“During every production we are trying to maintain its
quality. We are working hard to reach each and every customer at
their convenient places. That‟s the reason our „Omkar Products‟ has
won best quality award by ISO 9001-2000 in entire sindhudurg for
which we feel proud.”
 PRODUCT OF COMPANY-
 KOKAM-
Kokam juice, kokam syrup, kokam sol, kokam oil.

 AMALA-
Amala squash, Amala juice, Amala mava, Amala petha.
 MANGO-
Alphanso mango squash, Mango jam, Alphanso mango pulp,
Raw mango squash, Sweet mango pickle, Mango pickle, Mango poli.
 JAMUN-
Jamun Juice, Jamun seed powder.
 PINEAPLE-
Pineapple squash, Pineapple jam.
 LEMON-
Lemon jinger, Lemon pickle.
 CHILLY-
Chilly pickle, Curd chilly, Masala chilly.
 OTHER PRODUCTS-
Mix fruits jam, Mix pickle, jelly, appetizer, Metkut, Moth bean
powder, Honey.
 NO OF EMPLOYEES-
17 to18.

CHAPTER NO.
3
THEROTICAL
BACKGROUND

 PROCESS OF PERFORMANCE APPRAISAL
Establishing performance standards
Communicating standards and expectations
Measuring the actual performance
Comparing with standards
Discussing results
(Providing feedback)
Decision making-taking corrective action
1. Establishing performance standards
The first step in the process of performance appraisal is the
setting up of the standards which will be used to as the base to
compare the actual performance of the employees. This step
requires setting the criteria to judge the performance of the
employees as successful or unsuccessful and the degrees of their
contribution to the organizational goals and objectives. The
standards set should be clear, easily understandable and in
measurable terms. In case the performance of the employee cannot
be measured, great care should be taken to describe the standards.
2. Communicating the standards
Once set, it is the responsibility of the management to
communicate the standards to all the employees of the
organization. The employees should be informed and the standards

should be clearly explained to the employees. This will help them
to understand their roles and to know what exactly is expected
from them. The standards should also be communicated to the
appraisers or the evaluators and if required, the standards can also
be modified at this stage itself according to the relevant feedback
from the employees or the evaluators.
3. Measuring the actual performance
The most difficult part of the Performance appraisal process
is measuring the actual performance of the employees that is the
work done by the employees during the specified period of time. It
is a continuous process which involves monitoring the
performance throughout the year. This stage requires the careful
selection of the appropriate techniques of measurement, taking
care that personal bias does not affect the outcome of the process
and providing assistance rather than interfering in an employees
work.
4. Comparing actual performance with desired performance
The actual performance is compared with the desired or the
standard performance. The comparison tells the deviations in the
performance of the employees from the standards set. The result
can show the actual performance being more than the desired
performance or, the actual performance being less than the desired
performance depicting a negative deviation in the organizational
performance. It includes recalling, evaluating and analysis of data
related to the employees‟ performance.

5. Discussing results [Feedback]
The result of the appraisal is communicated and discussed
with the employees on one-to-one basis. The focus of this
discussion is on communication and listening. The results, the
problems and the possible solutions are discussed with the aim of
problem solving and reaching consensus. The feedback should be
given with a positive attitude as this can have an effect on the
employees‟ future performance. Performance appraisal feedback
by managers should be in such way helpful to correct mistakes
done by the employees and help them to motivate for better
performance but not to demotivate. Performance feedback task
should be handled very carefully as it may leads to emotional
outburst if it is not handing properly. Sometimes employees should
be prepared before giving them feedback as it may be received
positively or negatively depending upon the nature and attitude of
employees.
6. Decision-making
The purpose of conducting employee performance appraisal
is for making decisions about employees without any bias by the
HR manager. Decision-making by HR managers about employees
rewarding, promotions, demotions, transfers and sometimes
suspensions/dismissal of employees are depended upon the
employee performance appraisal. The decision taken by HR
manager should match exactly with performance appraisal results
of employees to avoid grievance or disturbances in between them,
as they affects overall performance of the organization.

 BENEFITS OF PERFORMANCE APPRAISAL
One of the most significant benefits of performance
appraisal is that, in the rush and bustle of daily working life, it offers a
rare chance for a supervisor and subordinate to have "time out" for a
one-on-one discussion of important work issues that might not
otherwise be addressed.
1. Motivation and Satisfaction
Performance appraisal can have a profound effect on levels
of employee motivation and satisfaction - for better as well as for
worse. Performance appraisal provides employees with recognition
for their work efforts. The power of social recognition as an
incentive has been long noted. In fact, there is evidence that human
beings will even prefer negative recognition in preference to no
recognition at all. If nothing else, the existence of an appraisal
program indicates to an employee that the organization is
genuinely interested in their individual performance and
development.
2. Training and Development
Performance appraisal offers an excellent opportunity -
perhaps the best that will ever occur - for a supervisor and
subordinate to recognize and agree upon individual training and
development needs. Performance appraisal can make the need for
training more pressing and relevant by linking it clearly to
performance outcomes and future career aspirations.

3. Recruitment and Induction
Appraisal data can be used to monitor the success of the
organization's recruitment and induction practices. Appraisal data
can also be used to monitor the effectiveness of changes in
recruitment strategies. By following the yearly data related to new
hires (and given sufficient numbers on which to base the analysis)
it is possible to assess whether the general quality of the workforce
is improving, staying steady, or declining
4. Employee Evaluation
Though often understated or even denied, evaluation is a
legitimate and major objective of performance appraisal. It is said
by some that performance appraisal cannot serve the needs of
evaluation and development at the same time; it must be one or the
other. But there may be an acceptable middle ground, where the
need to evaluate employees objectively, and the need to encourage
and develop them, can be balanced.
 METHODS OF PERFORMANCE APPRAISAL
A. Traditional Method
1. Rating Scales
2. Checklist
3. Forced Choice Method
4. Forced Distribution Method
5. Critical Incidents Method
6. Behaviorally Anchored Rating Scales
7. Essay Method

B. Modern Method
1. Management By Objectives
2. Assessment Centers
3. 360-Degree Appraisal
4. Psychological Appraisals
A. Traditional Method
1. Rating Scales:
Rating scales consists of several numerical scales
representing job related performance criterions such as
dependability, initiative, output, attendance, attitude etc. Each
scales ranges from excellent to poor. The total numerical scores are
computed and final conclusions are derived.
2. Checklist:
Under this method, checklist of statements of traits of
employee in the form of Yes or No based questions is prepared.
Here the rater only does the reporting or checking and HR
department does the actual evaluation.
3. Forced Choice Method:
The series of statements arranged in the blocks of two or
more are given and the rater indicates which statement is true or false.
The rater is forced to make a choice. HR department does actual
assessment.
4. Forced Distribution Method:
Here employees are clustered around a high point on a rating
scale. Rater is compelled to distribute the employees on all points

on the scale. It is assumed that the performance is conformed to
normal distribution.
5. Critical Incidents Method:
The approach is focused on certain critical behaviors of
employee that makes all the difference in the performance.
Supervisors as and when they occur record such incidents.
6. Behaviorally Anchored Rating Scales:
Statements of effective and ineffective behaviors determine
the points. They are said to be behaviorally anchored. The rater is
supposed to say, which behavior describes the employee
performance.
7. Essay Method:
In this method the rater writes down the employee
description in detail within a number of broad categories like,
overall impression of performance, promote ability of employee,
existing capabilities and qualifications of performing jobs,
strengths and weaknesses and training needs of the employee.
B. Modern Method
1. Management by Objectives:
It means management by objectives and the performance is
rated against the achievement of objectives stated by the
management. MBO process goes as under.
 Establish goals and desired outcomes for each subordinate
 Setting performance standards
 Comparison of actual goals with goals attained by the employee

 Establish new goals and new strategies for goals not achieved in
previous year.
2. Assessment Centers:
This technique was first developed in USA and UK in 1943.
An assessment center is a central location where managers may come
together to have their participation in job related exercises evaluated
by trained observers. It is more focused on observation of behaviors
across a series of select exercises or work samples. Assesses are
requested to participate in in-basket exercises, work groups, computer
simulations, role playing and other similar activities which require
same attributes for successful performance in actual job.
3. 360-Degree Appraisal:
It is a technique which is systematic collection of
performance data on an individual group, derived from a number of
stakeholders like immediate supervisors, team members, customers,
peers and self. In fact anyone who has useful information on how an
employee does a job may be one of the appraisers. This technique is
highly useful in terms of broader perspective, greater self-
development and multi-source feedback is useful. 360-degree
appraisals are useful to measure inter-personal skills, customer
satisfaction and team building skills. However on the negative side,
receiving feedback from multiple sources can be intimidating,
threatening etc. Multiple raters may be less adept at providing
balanced and objective feedback.

4. Psychological Appraisals:
These appraisals are more directed to assess employee‟s
potential for future performance rather than the past one. It is done in
the form of in-depth interviews, psychological tests, and discussion
with supervisors and review of other evaluations. It is more focused
on employees emotional, intellectual, and motivational and other
personal characteristics affecting his performance. This approach is
slow and costly and may be useful for bright young members who
may have considerable potential. However qualities of these
appraisals largely depend upon the skills of psychologists who
perform the evaluation.
 IMPORTANCE OF PERFORMANCE APPRAISAL
1. Performance Feedback
Most employees are very interested in knowing how well
they are doing at present and how they can do better in a future. They
want this information to improve their performance in order to get
promotions and merit pay. Proper performance feedback can improve
the employee's future performance. It also gives him satisfaction and
motivation.
2. Employee Training and Development Decisions
Performance Appraisal information is used to find out
whether an employee requires additional training and development.
Deficiencies in performance may be due to inadequate knowledge or
skills. For e.g. A professor may improve his efficiency by attending
workshops or seminars about his subject. Performance appraisal helps

a manager to find out whether he needs additional training for
improving his current job performance. Similarly, if the performance
appraisal results show that he can perform well in a higher position,
then he is given training for the higher level position.
3. Validation of Selection Process
Performance appraisal is a means of validating both internal
(promotions and transfers) and external (hiring new employees from
outside) sources. Organizations spend a lot of time and money for
recruiting and selecting employees. Various tools used in the selection
process are application blanks, interviews, psychological tests, etc.
These tools are used to predict (guess) the candidate's performance on
the job. A proper performance appraisal finds out the validity of the
various selection tools and so the company can follow suitable steps
for selecting employees in future.
4. Promotions
Performance appraisal is a way of finding out which
employee should be given a promotion. Past appraisals, together with
other background data, will enable management to select proper
persons for promotion.
5. Transfers
Performance appraisal is also useful for taking transfer
decisions. Transfers often involve changes in job responsibilities, and
it is important to find out the employees who can take these
responsibilities. Such identification of employees who can be
transferred is possible through the performance appraisal.

6. Layoff Decisions
Performance appraisal is a good way of taking layoff
decisions. Employees may be asked to layoff, if the need arises. The
weakest performers are the first to be laid off. If there is no
performance appraisal, then there are chances that the best men in the
department may be laid off.
7. Compensation Decisions
Performance appraisal can be used to compensate the
employees by increasing their pay and other incentives. This is truer
in the case of managerial jobs and also in the case of employees in
non-unionized organizations. The better performances are rewarded
with merit pay.
8. Human Resource Planning (HRP)
The appraisal process helps in human resource planning
(HRP). Accurate and current appraisal data regarding certain
employees helps the management in talking decisions for future
employment. Without the knowledge of who is capable of being
promoted, demoted, transferred, laid off or terminated, management
cannot make employment plans for the future.
9. Career Development
Performance appraisal also enables managers to coach and
counsel employees in their career development.

CHAPTER NO.
4
PRACTICAL RESEARCH

 Characteristics of company
1. Ownership:
Ownership of small scale unit is with one individual in sole-
proprietorship or it can be with a few individuals in partnership.
2. Management and control:
A small-scale unit is normally a one man show and even in
case of partnership the activities are mainly carried out by the active
partner and the rest are generally sleeping partners. These units are
managed in a personalized fashion. The owner is activity involved in
all the decisions concerning business.
3. Area of operation:
The area of operation of small units is generally localized
catering to the local or regional demand. The overall resources at the
disposal of small scale units are limited and as a result of this, it is
forced to confine its activities to the local level.
4. Technology:
Small industries are fairly labour intensive with
comparatively smaller capital investment than the larger units.
Therefore, these units are more suited for economics where capital is
scarce and there is abundant supply of labour.
5. Gestation period:
Gestation period is that period after which teething problems
are over and return on investment starts. Gestation period of small
scale unit is less as compared to large scale unit.

6. Flexibility:
Small scale units as compared to large scale units are more
change susceptible and highly reactive and responsive to socio-
economic conditions.
They are more flexible to adopt changes like new method of
production, introduction of new products etc.
7. Resources:
Small scale units use local or indigenous resources and as
such can be located anywhere subject to the availability of these
resources like labour and raw materials.
8. Dispersal of units:
Small scale units use local resources and can be dispersed
over a wide territory. The development of small scale units in rural
and backward areas promotes more balanced regional development
and can prevent the influx of job seekers from rural areas to cities.
 objectives of company
1. To create more employment opportunities with less investment.
2. To remove economic backwardness of rural and less developed
regions of the economy.
3. To reduce regional imbalances.
4. To mobilize and ensure optimum utilization of unexploited
resources of the country.

5. To improve standard of living of people.
6. To ensure equitable distribution of income and wealth.
7. To solve unemployment problem.
8. To attain self-reliance.
9. To adopt latest technology aimed at producing better quality
products at lower costs.
 MAJOR PROBLEMS FACE BY COMPANY
1. Finance:
Finance is one of the most important problem confronting
small scale industries Finance is the life blood of an organization and
no organization can function proper у in the absence of adequate
funds. The scarcity of capital and inadequate availability of credit
facilities are the major causes of this problem.
2. Raw Material:
Small scale industries normally tap local sources for meeting
raw material requirements. These units have to face numerous
problems like availability of inadequate quantity, poor quality and
even supply of raw material is not on regular basis. All these factors
adversely affect t e functioning of these units.
3. Technology:
Small scale entrepreneurs are not fully exposed to the latest
technology. Moreover, they lack requisite resources to update or

modernize their plant and machinery Due to obsolete methods of
production, they are confronted with the problems of less production
in inferior quality and that too at higher cost. They are in no position
to compete with their better equipped rivals operating modem large
scale units.
4. Marketing:
These small scale units are also exposed to marketing
problems. They are not in a position to get firsthand information about
the market i.e. about the competition, taste, liking, disliking of the
consumers and prevalent fashion.
5. Skilled Manpower:
A small scale unit located in a remote backward area may
not have problem with respect to unskilled workers, but skilled
workers are not available there. The reason is Firstly, skilled workers
may be reluctant to work in these areas and secondly, the enterprise
may not afford to pay the wages and other facilities demanded by
these workers.
6. Project Planning:
Another important problem faced by small scale
entrepreneurs is poor project planning. These entrepreneurs do not
attach much significance to viability studies i.e. both technical and
economical and plunge into entrepreneurial activity out of mere
enthusiasm and excitement.

7. Managerial:
Managerial inadequacies pose another serious problem for
small scale units. Modern business demands vision, knowledge, skill,
aptitude and whole hearted devotion. Competence of the entrepreneur
is vital for the success of any venture. An entrepreneur is a pivot
around whom the entire enterprise revolves.
8. Infrastructure:
Infrastructure aspects adversely affect the functioning of
small scale units. There is inadequate availability of transportation,
communication, power and other facilities in the backward areas.
Entrepreneurs are faced with the problem of getting power
connections and even when they are lucky enough to get these they
are exposed to unscheduled long power cuts.

CHAPTER NO.
5
INTERPRETATION OF
DATA

Q.1 In your Opinion Performance Appraisal is?
a. Evaluation of Employees
b. Promotion of Employees
c. Job Satisfaction of Employees
d. Motivation
Chart-
 INTERPRETATION-
This is suggest that the 60% of employees says that evaluation
of employees, 10% employees says that promotion of employees,
10% employees says that job satisfaction, 20% employees says that
motivation.
60%
10%
10%
20%
Employee Opinion
evaluation of employee
Pramotion of employee
Job satisfaction
Motivation

Q. 2.Which method of performance appraisal is implemented in the
organization?
a. Merit
b. Grading
c. Other
Chart-
 INTERPRETATION-
This is suggest that the 50% employees says that merit, 30%
employees says that grading & 20% employees says that other.
50%
30%
20%
Employee Opinion
Merit
Grading
Other

Q. 3.Do you receive any increment in your salary after performance
Appraisal?
a. Strongly agree
b. Agree
c. Disagree
Chart-
 INTERPRETATION-
In above diagram 20% employees are strongly agree, 60%
employees are agree, and 20% employees are disagree with receive
any increment in your salary after performance Appraisal.
20%
60%
20%
Employee Opinion
Strongly agree
Agree
Disagree

Q. 4.Do you think that performance Appraisal help to provide an
atmosphere where all are encouraged to share one another burden.
a. Strongly agree
b. Agree
c. Disagree
Chart-
 INTERPRETATION-
employees are agree, and 15% employees are disagree that
performance Appraisal help to provide an atmosphere where all are
encouraged to share one another burden.
15%
70%
15%
Sales
Strongly agree
Agree
Disagree

Q. 5.Do you think performance appraisal helps people set and achieve
meaningful goals?
a. Strongly agree
b. Agree
c. Disagree
Chart-
 INTERPRETATION-
employees are agree, and 21% employees are disagree they are think
performance appraisal helps people set and achieve meaningful goals.
39%
40%
21%
Sales
Strongly agree
Agree
Disagree

Q. 6.Do you think performance appraisal give constructive criticism in a
friendly and positive manner?
a. Strongly agree
b. Agree
c. Disagree
Chart-
 INTERPRETATION-
employees are agree, and 22% employees are disagree with
performance appraisal give constructive criticism in a friendly and
positive manner.
32%
46%
22%
Sales
Strongly agree
Agree
Disagree

Q. 7.Do you think that performance of employees improve after process
of performance appraisal?
a. Strongly agree
b. Agree
c. Disagree
Chart-
 INTERPRETATION-
performance of employees improve after process of performance
appraisal.
14%
72%
14%
Sales
Strongly agree
Agree
Disagree

Q. 8.Do you think performance appraisal improves motivation and job
Satisfaction?
a. Strongly agree
b. Agree
c. Disagree
Chart-
 INTERPRETATION-
performance appraisal improves motivation and job Satisfaction.
23%
55%
22%
Sales
Strongly agree
Agree
Disagree

Q. 9.Is the top level management partial in Performance Appraisal?
a. Strongly agree
b. Agree
c. Disagree
Chart-
 INTERPRETATION-
employees are agree, and 12% employees are disagree with the top
level management partial in Performance Appraisal.
23%
65%
12%
Sales
Strongly agree
Agree
Disagree

Q. 10.Do you think performance appraisal helps to change behavior of
Employees?
a. Strongly agree
b. Agree
c. Disagree
Chart-
 INTERPRETATION-
performance appraisal helps to change behavior of Employees.
91%
6%
3%
Sales
Strongly agree
Agree
Disagree

Q. 11.In your opinion Performance Appraisal system of your
organization is related to which of the following?
a. Retention of Employees
b. Recruitment System
c. Organizational Culture
d. Motivation
Chart-
 INTERPRETATION-
This is suggest that the 10% of employees says that Retention
of Employees, 28% employees says that Recruitment System, 36%
employees says that Organizational Culture, 26% employees says that
motivation.
10%
28%
36%
26%
Sales
Retation of Employee
Recruitment System
Organizational Culture
motivation

Q. 12.After performance appraisal improvement in your performance?
a. 10-20
b. 20-30
c. 30- above
Chart-
 INTERPRETATION-
In above diagram 41% employees are says that 10-20, 33%
employees are says that 20-30, and 26% employees are says that 30-
above
41%
33%
26%
Sales
ten-20
20-30
30-above

Q. 13.Are you aware about the modern techniques used in performance
appraisal?
a. Strongly agree
b. Agree
c. Disagree
Chart-
 INTERPRETATION-
employees are agree, and 2% employees are disagree with the modern
techniques used in performance appraisal
82%
16%
2%
Sales
Strongly agree
Agree
Disagree

Q. 14.Are you aware about your performance appraisal or any evaluation
done by your superior?
a. Strongly agree
b. Agree
c. Disagree
Chart-
 INTERPRETATION-
performance appraisal or any evaluation done by your superior.
34%
45%
21%
Sales
Strongly agree
Agree
Disagree

Q.15.Do you think performance appraisal is useful or just a waste of
time?
a. Useful
b. Waste of time
c. Not useful
Chart-
 INTERPRETATION-
In above diagram 90% employees are useful, 5% employees are
waste of time, and 5% employees are not useful with performance
appraisal is useful or just a waste of time.
90%
5%
5%
Sales
Useful
Waste of time
Not useful

Q. 16.Proper and adequate performance appraisal plays a crucial role in
your career development?
a. Strongly agree
b. Agree
c. Disagree
Chart-
 INTERPRETATION-
employees are agree, and 14% employees are disagree with Proper
and adequate performance appraisal plays a crucial role in your career
development.
51%
35%
14%
Sales
Strongly agree
Agree
Disagree

Q. 17.Performance appraisal is most of the time fair and unbiased?
a. Strongly agree
b. Agree
c. Disagree
Chart-
 INTERPRETATION-
Performance appraisal is most of the time fair and unbiased.
70%
20%
10%
Sales
Strongly agree
Agree
Disagree

Q. 18.Performance appraisal techniques make you better eligible for
promotion, demotion, & transfer?
a. Strongly agree
b. Agree
c. Disagree
Chart-
 INTERPRETATION-
Performance appraisal techniques make you better eligible for
promotion, demotion, & transfer.
65%
23%
12%
Sales
Strongly agree
Agree
Disagree

Q. 19.Does the appraisal system helps in polishing the skills or
performance area?
a. Strongly agree
b. Agree
c. Disagree
Chart-
 INTERPRETATION-
employees are agree, and 20% employees are disagree with the
appraisal system helps in polishing the skills or performance area.
30%
50%
20%
Sales
Strongly agree
Agree
Disagree

Q. 20.Does Performance Appraisal leads to identification of hidden
potential of the employees?
a. Strongly agree
b. Agree
c. Disagree
Chart-
 INTERPRETATION-
Performance Appraisal leads to identification of hidden potential of
the employees.
25%
65%
10%
Sales
Strongly agree
Agree
Disagree

CHAPTER NO.
6
APPENDIX, IMAGES,
QUESTIONNAIRE

 QUESTIONNAIRE-
Q.1.In your Opinion Performance Appraisal is?
a. Evaluation of Employees
b. Promotion of Employees
c. Job Satisfaction of Employees
d. Motivation
Q. 2.Which method of performance appraisal is implemented in the
organization?
a. Merit
b. Grading
c. Other
Q. 3.Do you receive any increment in your salary after performance
Appraisal?
a. Strongly agree
b. Agree
c. Disagree
Q. 4.Do you think that performance Appraisal help to provide an
atmosphere where all are encouraged to share one another
burden.
a. Strongly agree
b. Agree
c. Disagree

Q. 5.Do you think performance appraisal helps people set and achieve
meaningful goals?
a. Strongly agree
b. Agree
c. Disagree
Q. 6.Do you think performance appraisal give constructive criticism
in a friendly and positive manner?
a. Strongly agree
b. Agree
c. Disagree
Q. 7.Do you think that performance of employees improve after
process of performance appraisal?
a. Strongly agree
b. Agree
c. Disagree
Q. 8.Do you think performance appraisal improves motivation and job
Satisfaction?
a. Strongly agree
b. Agree
c. Disagree
Q. 9. Is the top level management partial in Performance Appraisal?
a. Strongly agree
b. Agree
c. Disagree

Q. 10.Do you think performance appraisal helps to change behavior
of Employees?
a. Strongly agree
b. Agree
c. Disagree
Q. 11.In your opinion Performance Appraisal system of your
organization is related to which of the following?
a. Retention of Employees
b. Recruitment System
c. Organizational Culture
d. Motivation
Q. 12.After performance appraisal improvement in your performance.
a. 10-20
b. 20-30
c. 30- above
Q. 13.Are you aware about the modern techniques used in
performance appraisal?
a. Strongly agree
b. Agree
c. Disagree
Q. 14.Are you aware about your performance appraisal or any
evaluation done by your superior?
a. Strongly agree
b. Agree
c. Disagree

Q.15.Do you think performance appraisal is useful or just a waste of
time?
a. Useful
b. Waste of time
c. Unuseful
Q. 16.Proper and adequate performance appraisal plays a crucial role
in your career development?
a. Strongly agree
b. Agree
c. Disagree
Q. 17.Performance appraisal is most of the time fair and unbiased?
a. Strongly agree
b. Agree
c. Disagree
Q. 18.Performance appraisal techniques make you better eligible for
promotion, demotion, & transfer?
a. Strongly agree
b. Agree
c. Disagree
Q. 19.Does the appraisal system helps in polishing the skills or
performance area?
a. Strongly agree
b. Agree
c. Disagree

Q. 20.Does Performance Appraisal leads to identification of hidden
potential of the employees?
a. Strongly agree
b. Agree
c. Disagree

CHAPTER NO.
7
FINDINGS & SUGGETIONS

 FINDINGS-
1. Maximum employees are favorable with the internal
environment of the organization.
2. Maximum support is given to the employees for their
innovative ideas for process improvement.
3. Relation of the employees with the superiors is supportive.
4. Majority of the employees are satisfied with their increment
through monetary motivation.
5. Proper training programs on safety from hazardous &
inflammable material are conducted to avoid accidents.
6. Majority of the employees are satisfied with the medical
support given by the organization through this their
performance can increase
7. Maximum employees are satisfied with the recreational
activities provided by the organization
8. .Feedback is provided to the employees though in a very few
occasion.

 SUGGETIONS-
1. Performance Appraisal should be experience, work skill, labors
sincerity.
2. Evaluation should be as per performance and shall not be
biased.
3. Valuation of performance should be done in each quarter.
4. Employee is the key resource of the organization. Hence
employee satisfaction is the key to success for the
organizational growth. For employee satisfaction there should
be good incremental and promotional policies.
5. Things carried out on paper should be followed/ implemented
or at least can be tried.
6. Every employee should have a right of justification for his own
roles, responsibilities and designation.
7. Organization must use 360 degree appraisal method because
this method not only includes the performance of an employee
but his interpersonal skills also

CHAPTER NO.
8
CONCLUSION

CONCLUSION
This research has showed that it is essential to have an
effective performance appraisal system. The system should be free from
bias so that employees are afforded the chance to get a fair appraisal. It
shows that if appraisals are not fair, then the employees would not be
aware of their true performance level. This could affect their
opportunity for advancement in their job in the future. It can also affect
employee‟s moral as good appraisal results motivate employees to work
even harder. Therefore inaccurate rating results in frustrated employees,
inappropriate rewords and punishment.

CHAPTER NO.
9
BIBLIOGRAPHY &
WEBLIOGRAPHY

 Bibliography-
Sr. No. Book Name Author Name Publication
1. Human Resource
Management
N. G. Kale
M. Ahmed
Vipul‟s
2. Human Resource
Management
R. Vishwanathan
R. Krishnamoorthy
Himalaya
3. Human Resource
Management
Sunny Fernandes Rishabh
 Webliography-
1. www.google.com
2. www.omkarproducts.com

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