Karnataka soaps performance appraisal

PERFORMANCE APPRAISAL
VIMAT - CHITTOOR Page 1
CHAPTER 1
1.1 INTRODUCTION
MEANING OF PERFORMANCE APPRAISAL:
Performance appraisal may be understood as the assessment of an
individual’s performance in a systematic way, the performance being measured
against such factors as job knowledge, quality of output, initiative, leadership abilities,
potential dependability, co-operative, judgment versatility and health.
DEFINITION OF PERFORMANCE APPRAISAL:
 Performance appraisal is a method of acquiring and processing the information
needed to improve an individual employees performance and accomplishments.
 Performance appraisal is the process of evaluating the performance and
qualifications of the employees.
.
1.3 BENEFITS OF A SYSTEMATIC APPROACH TO PERFORMANCE
APPRAISAL:
1. Help to establish the current level of performance in the job and seek ways of
improving it.
2. Helps to identify potential for the development and to aid manpower planning ‘Right
man for the right job at right time can be aimed’.
3. Helps to ink salary realistically to performance.
4. Helps to maintain good employee-employer relationship for promoting motivation,
communication and equality.
5. Helps in promoting group cohesiveness and establish fair relationship with in the work
groups.
6. Helps the management to allocate their resources in a dynamic environment and
thereby meeting the challenges of the modern technological development.
7. Help the management to administer effectively tactical and strategic planning in the
organization by ensuring continuity and growth of economic activities.

8. This is a unified system, thus avoiding the errors of nepotism, self-interest and
discrimination.
9. It provides information which is useful in making and enforcing important personnel
decisions.
10. The appraisal of employees are stored and maintained in the personnel and their skill
inventory cards. Arbitrator’s adjudicators or conciliation officers accept these in the
course of grievance handling procedures as authentic records.
JOSEPHTIFFIN LISTS THE FOLLOWING OBJECTIVESOF
PERFORMANCEAPPRAISAL (PA)
 It prevents grievances.
It improves job performance.
It increases analytical ability of supervisor.
Broadly PA serves four objectives:
Developmental uses.
Administrative uses/decisions.
Organizational maintenance/objectives.
Documentation purpose.
1.2 INDUSTRY PROFILE

Soap is one of the fast moving consumer goods, which have become an
indispensable part of life of the modern fantasy world. Since it is non-durable consumer
goods. There is a large market for it. The whole soap industry is experiencing changes
due to innumerable reasons such as government relations. Environment, toxicological
allergy problems, increases in cost of raw material etc.
The changing technology and even existing desire by the individuals and the
organization to produce a better product at a mere economical rate has also acted as Catalyst
for the dynamic process of change, more and more Soap manufactures are trying to capture
a commanding market share by introducing and maintaining acceptable products. The soap
industry in India faces a cutthroat Competition while multinational companies dominate
the market. They are also facing severe threat from dynamic and enterprising new
entrances especially during 1991-92.
Looking back at the history of soaps and detergents. Human kind knew about the
soap 2000 year ago. Roman was known to have been considerable users of soaps and
during the period of Roman Empire state right was collected as sources of ammonium
carbonate for cleaning purpose.
In 17 AD when pliancy and Elder accidentally discovered the soap, when roasted
meat over flowed on the glow of ashes, this lump like product was soap that has forming
and cleaning character. Since then, the first commercial batch has made and marketed by
M/s Bristol soap marketers and had on in 1192 AD.
Then from 1662 AD the first patent for making soap was taken in London and old
consumption of Soap was said 2 Lakes tons per annum and it was in the year that even the
field in a big way.
Indian Soap industry has seen several ups and downs in the last 30 to 40 years in
the year 1964, due to this India faced severe shortage of fats due to foreign exchange crisis
again in the year 1975 due to severe crunch in India northwest Soap Company established
first soap industry in 1887 at Meerut.
THE INDIAN SOAP INDUSTRY SCENARIO:

The Indian soap industry has long been dominated by hand full of companies such as
1. Hindustan Levers Limited.
2. Tate Oil Mills (Taken over by HLL )
3. Godrej Soaps private Limited.
The Indian Soaps industry continued to flourish very well until 1967-68. But began
to stagnate and soon it started to recover and experienced a short upswing in 1974. This
increase in demand can be attributed due to
1. Growth of population.
2. Income and consumption increase.
3. Increase in urbanization
4. Growth in degree of personal hygiene.
Soap manufacture has 2 Classification, Organized and unorganized sector.
KSDL carries under organized Sector.
PRESENT STATUS:
MARKET SCENARIO
India is the ideal market for cleaning products. The country’s Precipitate
consumption of detergent powders and bars stands at 1.6 Kg and soap at 543 GM.
Hindustan Liver, which towers over the cleaning business, sells in all over the
cleaning business but the tiniest of Indian settlements.
PROBLEMS OF SOAP INDUSTRY:
Soap industry faces some problems increase of Raw Materials. The major
ingredients like soap ash, Linear alkyl, benzene and Sodium. Tripoli Phosphate posse’s
number of serious problems in terms of availability. The demand supply gap vegetables
oil is 1.5 to 2 Lakes tons and is met through imports. In recent times, price of caustic soda
has shown ashes in the cheaper verities of Soaps are quite high.
1.3 COMPANY PROFILE
HISTORY

India is a rich land of forest; ivory, silk, sandal, precious gems and magical charms
of centuries. The most enchanting perfumes of the world got their exotic spell with a
twist of sandal. The world’s richest sandalwood resource is from one isolated stretch of
forestland in South India that is Karnataka.
The origin of perfumed sandalwood and its oil in Karnataka, which is used in
making in sandal soap. It is well known as Fragrant Ambassador of India & Sandalwood
known as a liquid Gold.
By the Inspiration of H.H.Maharaja of Mysore late H.H.Jayachamarajendra
Wodeyar, the trading of sandalwood was exported to Europe and New destination, but with
commencement of First world War India faced Severe Crisis on the business of
sandalwood.
This situation gave rise to start of an industry, which produces value added products
which the consumption of Sandalwood oil.
Hence H.H.Maharaja of Mysore created this situation as an opportunity by sowing
the seed of present KS&DL. The project was shaped with the engineer skill and expertise
of the top level.
Late Sir M.Visveswarayya, the great engineer is the man behind the project.
Today’s famous Mysore sandal soaps credit goes to late Sri S.G.Shastri who tried to
improve the process of soap making. He was an eminent scientist in the field of Research
& Development. Hence he was sent to England to master the final aspect of soap
manufacturers.
The Maharaja of Mysore & Diwan Sir. M.Visveshwaraya established the Government
Soap factory during the year 1918. The factory was started a very small unit near
K.R.Circle, Bangalore with the capacity of 100 tons P.A. in 1918. The factory shifted its
operation to Ranjajinagar industrial area, Bangalore in July 1957. The plant occupies an
area of 42 acres (covering soap, detergent and fatty acid division). On the Bangalore –

Pune Highway easily accessible by transport services and communication. In November
1916 the Mysore sandal soap was put into the market after sincere effort and experiments
were undertaken to evolve a soap perfume blend using sandalwood oil as the main base to
manufacture toilet soap. Another sandal wood oil division was established during the year
1944 at Shivamoga.
ORIGIN OF ORGANIZATION:
Karnataka produces 701 of the World’s sandal wood oil. The maharaja of Mysore
then realizing this fact was inspired to start a factory producing soap which could be made
out of plenty available sandal wood oil. In the year 1918 the Company came into existence
under the name Government Soap Factory.
This factory started at a moderate scale in year 1916 the first produced by this was
washing soap in addition to this Viz. also produced the toilet soap in the year 1918. The
toilet soap of the company was made up of sandal wood oil.
In 1950 Government decided to expand the factory in two stages. The first stage to
expansion was done to increase the output to 700 tons per year and was completed in the
year 1952 in the old premises.
The next stage of expansion was implemented in 1954 to meet growing demand for
Mysore sandal soap and for this purpose Government of India sanctioned license to
manufacture 1500 tons and 75 tons of glycerin per year. The expansion project worth of
21 lakh includes the shifting of the factory to a newly laid industrial suburban of Bangalore.
The factory started functioning in this new premise from 1st July, 1957 from this
year onwards the tills date the factory had newer looked back it has achieved growth and
development in production scales and profits.

The industry has 2 more division one at Shivamoga and another at Mysore where
sandal wood oil is extracted. These two units are functioning from 1970 and only during
1984 manufacturing of perfumed and premiere quality Agarbathies at Mysore division
were started. Right from the first log of sandalwood that rolled in to the boiler room in
1916, the company has been single – minded pursuit of excellence. The project takes place
with a lot engineering skill and expertise of top-level team under the leadership of Sir.
M.Visveshwaraiah, Prof. Warson and Dr.Subrough like this soap factory was started as a
small unit and now it has grown up to a giant sizes.
RENAMING:
On 1st October 1980 the Government soap factory renamed as “Karnataka soaps
and detergent limited” The Company was registered as a public limited company. Today
Company produces varieties of products in the toilet soaps detergent, Agarbathies and
talcum powder.
OBJECTIVES OF KS & DL COMPANY:
 To serve the national economy
 To attain self – reliance
 To promote uphold its image as symbol of traditional products
 To promote purity and quality products and thus enhance age old – charm sandal
oil
 To build upon the reputation of Mysore soap based on pure sandal oil.
 To maintain the brand loyalty of its customer.
 To supply the products mentioned above at most reasonable and competitive rate.
TRADEMARK OF KS & DL
The “SHARABHA”
The carving on the cover is the sharabha; the trademark of KS & DL.
The sharabha is a mythological creation from the pureness and embodies the
combined virtues of wisdom, courage and strength. While is illustrated in its unusual from

the body of a (on with the head of an elephant. It wad adopted as an official emblem of
KS& DL to symbolize the philosophy of the company.
The sharabha the symbolized power that removed imperfections and impurities.
The maharaja of Mysore has his official emblem adopted it. And soon took its pride of
place as the symbol of the government soap factory of quality that reflect a standard of
excellence of Karnataka soaps and detergent limited.
SLOGAN
“NATURAL PRODUCTS WITH EXOTIC FRAGRANCES”
GLOBAL FAVORITES FOR THEIR NATURAL GOODNESS
KS & DL has a long tradition of maintaining the highest quality standard, right
from the selection of raw materials to processing and packing of the end product. The
reasons why its products are much in demand globally and are exported regularly to UAE,
Brahmin, Saudi-Arabia, Kuwait, Qatar, South America. The sandalwood oil of course, is
much sought after by the leading perfume houses of the world. The entire toilet soaps of
KS & DL are made from oils and fats of vegetables origin and are totally free from animal
fats.
POLICY OF KS&DL
 Seek purchase goods and services from environment responsible suppliers.
 Communicate its environment policy and best practices to all its employee
implications.
 Set targets and monitor progress through internal and external audits.
 Strive to design and develop products which have friendly environmental
impact during manufacturing.

 Reuse and recycle materials wherever possible and minimize energy
consumption and waste.
BIRDS EYE VIEW OF KS&DL
1918 – Government soap factory started by Maharaja of Mysore and the
Mysore Sandal soap was introduced into the market for the first time.
1950 - The factory output raised to find terms
1. Renovating the whole premises.
2. Installing new boiler soap building plant and drying chamber.
1954 – Received license from government to manufacture 1500 tons of soap
and 75 tons of glycerin per year.
1957 – Factory shifted its operation to Rajajinagar industrial area.
1974 – Mysore sale international limited was appointed as the sole selling
agent.
1975 – The RS 3 Crores synthetic detergent plant was installed based on
Ballestra SPA (Italy) technology.
1980 - On 1st October 1980 the government soap factory a public sector
enterprise was renamed by “Karnataka soap $ Detergent Limited”
1981 – A) Production capacity was increased to 6000 tons
B) Rs.5 Crores fatty acid plant was installed with the technical
Collaboration from Europe.
1984 – Manufacturing of Perfume and premium quality at Mysore division.
1985 – Production capacity was raised to 26000 tone pa. A large variety of
toilet soap at attractive shapes and colors introduced to meet the
Variety of tastes of consume.
1992 – The Board for industries and financial reconstruction (BIFR), New
Delhi in December for rehabilitation.
1996 – The BIFR approved the rehabilitation scheme in September.
1999 - ISO 9002 Certificate for quality assurance in production, installation
and Servicing.
2000 – ISO 14001 certificate pertaining to environmental management

System.
2003 – In may the BIFR, New Delhi declared the company to be out of the
Purview.
2004 – The company launched herbal care soap.
AN ISO 9002 COMPANY
KS & DL with a tradition of excellence of over eight decades is committed
customer delight, through total quality management and continuous improvement through
the involvement of all employees. KS&DL has got ISO 9002 certificate.
To improve the quality management system and to facilitate TQM in the process of
soap and detergent. To management took decision to obtain ISO 9002 by end of March
1999. Accordingly action play has drowned up to contribution, the committee for the
purpose during October 1998 with a mission statement.
According to the company constitution of officers go for the formation in all the
area of the company’s operation. Particularly production, procurement, quality assurance,
store maintenance. The company gives initial training inclosing conducting employee’s
awareness program document quality manual and quality system procurement of presumes
approach of ISO 9002.
ISO 14001
The company is being in the facts of moving goods, company being located in the
heart of the Bangalore city. The top management of the company took the decision to get
the ISO 14001 and become model to other public sector for the techniques used and also
to other government units to spread the message of maintenance.
The clean and green objectives 14001, the constitutes core committee of officers of
6 months to study the impact of various processes during manufacturing covering the
Bangalore complex for soap detergent in this direction. Company gave program of the
awareness of 14001.

As per the time schedule can be able to register by the end of February to meet the
entire objectives and target by completing all the stages recommended for certification. On
March, 2000, ISO 14001 with tandem complied with ISO 9002 will facilitate to improve
the corporate brands in the global market it will help the company to improve the profits.
Year after Year long-term basis. The environment management system adopted in the
company through this motive as follows:
 Conservation of energy
 Conservation of Surrounding
 Conservation of resources.
Equipped with latest technology and backed by full-fledged control and R&D
support, KS&DL is marching confidentially a head in the new millennium.constantly
developing new products KS&SL meets the changing preferences of its customers.
KS&DL AT GLANCE
Incorporated Name - Karnataka soaps and Detergents limited.
Address - Karnataka soaps and detergents limited
Bangalore Pune High Way
Post Box No.5531
Rajajinagar, Bangalore – 560 055
Ph: 080-3377691/3370469/23371103 to 06
22376922 to 24
Emali : Mysoresandal @ vsnl.com
Website : www.mysoresandal.com.
Year of Establishment - 1918
Constitution - Wholly owned by Govt. of Karnataka
Management - Govt.of Karnataka & Financial Institution
Nominates Board of Director.

Chairman & MD with IAS Cadre
Rename - 1980
Trademark - The trademark is SHARABHA. It is the
Body of lion with the head of an elephant
means blending the majesty of lion with
Strength of an elephant.
Production range - Toilet soaps, bar soaps, Detergents Cakes
Agarbathies, Airfreshners, Talcum Powder,
Baby products, Glycerin (Industrial Grade)
Process know how - The facility is a pioneer in the manufactures
Of various soaps and technology
Imported from Italy.
Capacity of the Unit - Licensed capacity is title 46000 metric tons
Per annum
Cost of the project - Rs.22.94 Crores.
Working Capital - 10.49 Crores.
Sources of Finance - Loans from IDBI, IFCI, ICICI, Corporation
Bank, Canara Bank, SBM.
Plants - At Bangalore
Soap Plant
Detergent Plant
Fatty Acid Plant

- At Mysore
Sandal wood Oil
Agarbathies
- At shivamoga
Go downs
1.3.4 PRODUCT PROFILE
PRODUCT MANUFACTURED BY KS&DL
TOILET SOAP
NAME OF THE PRODUCT UNITS IN GRAMS
Mysore Sandal Soap 75
Mysore Sandal Classic Soap 75
Mysore Sandal Gold Soap 125
Mysore Sandal Baby Soap 75
Mysore Special Sandal Soap 75

Mysore Rose Soap 100
Mysore Sandal Herbal Care Soap 100
Mysore Jasmine Soap 100 & 75
Mysore lavender Soap 150
Mysore Sandal bath tablet 150
Mysore Sandal classic bath tablet 150
Mysore Jasmine bath tablet 150
Mysore Special Sandal tablet 150
Mysore Sandal rose tablet 150
Mysore Sandal Guest tablet 17
DETERGENTS:
Mysore detergent powder 1000
Mysore detergent powder 500
Mysore detergent Cake 125
Mysore detergent 250
TALCUM POWDERS

Mysore Sandal Talc 20, 50, 100, 300
Mysore Sandal Baby Talc 100, 200, 400
AGARBATHIES:
NAME OF THE PRODUCT
Mysore Sandal Premium
Mysore Sand
Mysore Rose
Nagachampa
Suprabhatha
Mysore Jasmine
Parijatha
Sir M.V.100
Bodhisathva
Alif Laila
1.3.5 ORGANISATION CHART
MD
Executive
Director
Marketing
Director
G.M.
Finance
A.G.M.
(H.R.D)
Chairman

CHAPTER 2
REVIEW OF LITERATURE
Periodic assessment and evaluation is vital for the growth of any business. Performance
appraisal one of such tool to measure the performance of employee.
Performance appraisal is mainly used to determine the wage increase,
promotions, transfers and layoffs, termination of services and training and development to
the employee in the organization. It serves as a tool to determine the future of the
organization and visualize the career growth of the employees.
G.M.
Production
D.G.M.
(S.O.D)
G.M
R&D/QAD
A.G.M
(Stores)
A.G.M
(C&S)
D.G.M
(P&M)
A.G.M
(U&T)
D.G.M
(D&M)
D.G.M
(M.TL)

Performance appraisal is normally done by senior executives and the
managers in the organization to apprise the employee of their performance and also to find
out their performance and also to find out their difficulties while meeting their goals.
During this period of carrying out the process, the appraiser faces problem in rating the
subordinate/employees/peers and sometimes he may rate his subordinates wrongly, which
will block the whole purpose of the appraisal.
NOTES ON THE PERFORMANCE APPRAISAL:
The performance of organization depends on the effective utilization of the resource
of 4M’s (Man space & buildings, raw materials, Plant and machinery & money). Man is
the most important resources for effective utilization of other resources using their skills,
knowledge and ability to perform.
People are key to our business success and their performance and moral are
related to effectiveness of leadership. Every organization, therefore, strives for greater
productivity, elimination of waste, lower costs and higher wages. The organization where
management leadership is effective, achieves better performance. If the leader is poor, it
will result in poor organization performance.
In any organization there is some sort of evaluation of the employees and
subordinates.
MEANING OF PERFORMANCE APPRAISAL:
Performance appraisal may be understood as the assessment of an
individual’s performance in a systematic way, the performance being measured
against such factors as job knowledge, quality of output, initiative, leadership abilities,
potential dependability, co-operative, judgment versatility and health.
DEFINITION OF PERFORMANCE APPRAISAL:

 Performance appraisal is a method of acquiring and processing the information
needed to improve an individual employees performance and accomplishments.
 Performance appraisal is the process of evaluating the performance and
qualifications of the employees.
.
1.3 BENEFITS OF A SYSTEMATIC APPROACH TO PERFORMANCE
APPRAISAL:
11. Help to establish the current level of performance in the job and seek ways of
improving it.
12. Helps to identify potential for the development and to aid manpower planning ‘Right
man for the right job at right time can be aimed’.
13. Helps to ink salary realistically to performance.
14. Helps to maintain good employee-employer relationship for promoting motivation,
communication and equality.
15. Helps in promoting group cohesiveness and establish fair relationship with in the work
groups.
16. Helps the management to allocate their resources in a dynamic environment and
thereby meeting the challenges of the modern technological development.
17. Help the management to administer effectively tactical and strategic planning in the
organization by ensuring continuity and growth of economic activities.
18. This is a unified system, thus avoiding the errors of nepotism, self-interest and
discrimination.
19. It provides information which is useful in making and enforcing important personnel
decisions.
20. The appraisal of employees are stored and maintained in the personnel and their skill
inventory cards. Arbitrator’s adjudicators or conciliation officers accept these in the
course of grievance handling procedures as authentic records.
JOSEPHTIFFIN LISTS THE FOLLOWING OBJECTIVESOF
PERFORMANCEAPPRAISAL (PA)

 It prevents grievances.
It improves job performance.
It increases analytical ability of supervisor.
Broadly PA serves four objectives:
Developmental uses.
Administrative uses/decisions.
Organizational maintenance/objectives.
Documentation purpose.

MULTIPLE PURPOSES OF PERFORMANCE ASSESSMENT:
General Applications Specific Purposes
Developmental Uses I. Identification of individual needs.
II. Performance feed back
III. Determining transfers and job assessment
IV. Identification of individual strengths and
development needs.
Administrative uses/decisions Salary, promotion, retention or
termination, reorganization of individual
performance, lay-offs, identification of
performance
2.4 PURPOSE OF PERFORMANCEAPPRAISAL:
Every individuals offer in their personality, situational, social, physiological traits. Once
the employees are hired. They are inducted, trained and developed with the help of various
training and development programs. But such development is slow.
Performance appraisal plays a key role in reward system. It is the process
of evaluating the performance of employees.
OBJECTIVES OF PERFORMANCE
APPRAISAL
Allocate
Resource
Reward
Employees
Give
Employees
Feedback
Maintain
Fairness
Coach&
Develop
Employees
Comply with equal
opportunity
Regulation

2.5 METHODS OF APPRAISAL:
Broadly all the approaches to appraisal can be classified in to following:
a) Past-oriented methods
b) Future oriented method.
METHODS OF APPRAISAL
1. PAST ORIENTED
A. RATING SCALE
B. CHECK LISTS
C. FORCED CHOICE METHOD
D. FORCED DISTRIBUTION METHOD
E. CRITICAL INCIDENT METHOD
F. BEHAVIORALLY ANCHORED SCALE
G. FIELD REVIEW METHOD
H. PERFORMANCE TESTS AND OBSERVATIONS
I. ANNUAL CONFIDENTIAL REPORT
J. ESSAY METHOD
K. COST ACCOUNTING APPROACH
L. COMPARATIVE EVALUATION METHOD
M. FUTURE ORIENTED
A. MANAGEMENT BY OBJECTIVES
B. 360 DEGREE APPRAISAL
C. PSYCHOLOGICAL APPRAISAL
D. ASSESSMENT CENTERS
PAST-ORIENTED METHODS:
RATING SCALE:

This is the simplest and most popular technique of appraising employee’s
performance. The typical rating scale system consists of several numerical scales, each
representing a job related performance criterion such as dependability, initiation, output,
attendance, attitude, co-operation and the like.
CHECK LIST METHOD
Under this method, a check list of statements on the traits of the employee and
his /her job is prepared in 2 columns-viz, a ‘Yes’ column and a ‘No’ column.
FORCED CHOICE METHOD:
In this the rate is given a series of statements about an employee.
These statements are arranged in a block of two or more, and rather indicate, which
statement is more or least descriptive of the employee.
FORCED DISTRIBUTION METHOD:
The forced distribution method seeks to over come the problems by
compelling the rates on all points on the rating scale.
CRITICAL INCIDENTS METHOD:
The critical incident method of employee assessment has generated a lot
of interest these days.
BEHAVIOURALLY ANCHORED RATING SCALE (BAR):
Behaviorally anchored scales, sometimes called behavioral expectation
scales, are rating scales whose scale points are determined by statements of effective and
in-effective behavior.
FIELD REVIEW METHOD:
This is an appraisal by someone outside the access’s own department, usually
someone from the corporate office or the HR department.

PERFORMANCE TEST AND OBSERVATIONS:
With a limited number of jobs, employee assessment may be based upon a test of
knowledge or skills. The test may be of the paper and pencil variety or an actual
demonstration of skills. The test must be reliable and validated to be useful.
COFIDENTIALRECORDS:
Confidential records are maintained only in government departments, though its
application in the industry is not ruled out. The system is highly secretive and confidential.
Feedback to the assesses was given only incase of an adverse entry.
ESSAY METHOD:
In the essay method, the rater must describe the employee within a number of
board categories such as
 The rater’s overall impression of the employee’s performance,
 The promo ability of the employee,
 The jobs that the employee is now able or qualified to perform,
 The strengths and weakness of employee and
COST ACCOUNTING METHOD:
This method evaluates performance from the monitory returns the employee
yields to his or her organization.
COMPARITIVE EVALUATION APPROACHS:
This method evaluates performance from the monetary returns the employee
yields to his or her organization.

FUTURE ORIENTED APPRAISAL:
The commonly used future oriented technique is MBO, psychological
appraisal &assessment centers.
Managementby objectives:
Management by objectives is a technique used by managers in some organizations
to motivate employees to perform well by using the goal-setting technique.
MBO
1) To identify the problems and opportunities in the business.
2) To convert identified opportunities in to clear goals.
3) To set up a system to convert these goals into achievements.
4) To set a standard of performance.
5) To raise a standard of performance.
6) To set a new target where the existing ones have proved unrealistic.
7) To achieve something in particular.
8) To innovate.
9) To develop the individual.
10) To cash in on unforeseen circumstances.
Psychological appraisal:
Large organizations employ full time industrial psychologist, when
psychologists are used for evaluations; they assess an individual’s future potential and not
performance. The appraisal normally consists of in depth interviews, psychological tests,
discussions with supervisors and a review of other evaluations.
Assessmentcenter
Mainly used for executive hiring, assessment centers are now beginning
used for evaluating executive or supervisory potential.
360-degreefeedback
The performance evaluation technique by multiple raters is called 360-
degree appraisal. The 360-degree technique 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.
In fact, anyone who has useful information on ‘how an employee does the job’ may be one
of the appraisers.
ORGANIZATIONAL STRATEGY AND PERFORMANCE
APPRAISAL:
Performance appraisal system has strategic importance to a firm in three ways:
1. Feed back mechanism.
2. Consistency between organizational strategy and job behavior and
3. Consistency between organizational values and job behavior.

Feed back Mechanism
An organization seeks to do three fundamental tasks.
1. Design jobs and work system to accomplish organizational goals;
2. Hire individuals with capabilities to discharge the jobs effectively; and
3. Train, motivate and remunerate employees for their performance and
productivity.
Consistency between organizational strategy and behavior
An organization needs a strategy consistent with the behavior of its
employees if it were to realize its goals. A truism of organizational life is that people engage
themselves in behaviors that they perceive will be reward
BENEFITS OF PERFORMANCE APPRAISAL FOR TYPICAL EXECUTIVES
The system should provide employee with an opportunity to receive feedback
regarding their performance usually once in a year. This leads to reduced error and waste,
increased production improved quality, and service for growth, and employee motivation,
commitment and since of ownership.
The system provides an opportunity for performance related discussion that
includes the following aims:

 Setting objective of employees
 Aliening individual and organizational goals,
 Identifying training and development needs,
 Discussing career progression opportunities.

CHAPTER – 3
RESEARCH METHODOLOGY
3.1 NEED FOR THE STUDY
 To study the performance appraisal method and process & how the
employees are appraised, right from the time of interview.
 To study on what basis the employees are promoted.
 To study how the employees are rated by their superiors.
3.2 SCOPE OF THE STUDY
Performance appraisal systems are practiced in most organizations
today. Performance appraisal is a Pre-requisite to user in quality at the human-social
subsystems of an organization enabling better reward process and adoption to
environmental changes. The performance appraisal process is not the sole responsibility of
human resource. It is the prime responsibility of all line managers
3.3 OBJECTIVES OF THE STUDY
The study titled “Performance Appraisal System as a tool for organizational
development” has been conducted with the following objectives:
1. To study the existing system of performance appraisal at KS & DL
2. To find out the effectiveness of the performance appraisal system.
3. To obtain the perception of the employees towards the Performance Appraisal.
4. To suggest the ways and means to improve the appraisal system.
5. METHODOLOGY OF THE STUDY

Research Methodology is a systematic and objective process of identifying
and formulating the problem by setting objective and methods and the methods for collecting,
editing, tabulating, evaluating, analyzing, interpreting and presenting data in order to find
justified solution.
3.4 METHODOLOGY
3.4.1 DATASOURCES
Data refers to the information or facts. Often researchers understand by data only numerical
figures. It also includes descriptive facts, non-numerical information, qualitative and
qualitative information. The source of data can be from primary and Secondary.
Primary Data
Primary data are those data, which are collected as fresh and for the just time and thus happen
to be original primary data for this study was collected by preparing a well-structured
questionnaire.
Secondary Data
Secondary data are those data, which are collected from the already existing information
through reference. The secondary data collected by analyzing various materials like
 Company profiles
 Magazines
 Journals
 Past records and reports and Websites, etc.

The Sample constituted of 60 employees from different department of the organisation.
3.4.2 SAMPLE SIZE AND SAMPLING METHID:
Method of Sampling
There are many sample methods to collect data. The sampling method used is simple
random sampling.
Sample Size
The Sample constituted of 60 workers from different department of the organizations.
Survey Design
The survey is based on the primary source of data. Three methods of primary
data were selected to conduct the study i.e., Questionnaire, Observation and Personal
Interviews methods. Since the statements in the Questionnaire and Schedule were
qualitative, they are quantified on a five-point Scale using Linker type technique.
TOOLS OF ANALYSIS
Sample Analysis By Percentage (%)Method
% refers to a special kind of ratio. % is used in making comparison between two
or more serried of data, % are used to describe relationship. It can be used to compare the
relative terms, the distribution of two or more series of data.
NO OF RESPONDENT
TOTAL NO OF SAMPLES SIZE * 100

3.5 LIMITATIONS OF THE STUDY
1. Study is limited to KS&DL only.
2. Employees did not disclose much of information due to the fear of their
superiors.
3. Due to the time limit of two months the study is unable to caree at the total
employees in the organization.

CHAPTER - 4
DATA ANALYSIS AND INTERPRETATION
TABLE -1
Q1: Whether the company should have a performance appraisal system?
ATTRIBUTES NO OF
RESPONDENTS
% OF
RESPONDENTS
YES 60 80
NO 40 20
TOTAL 100 100
GRAPH
INFERENCE: From the above table, 80% of respondent felt that company should have a
performance appraisal system and 20% felt that no need of performance appraisal system.
80%
20%
Yes
No

TABLE-2
Q2: Are you satisfied with current performance appraisal system?
ATTRIBUTES NO OF
RESPONDENTS
% OF
RESPONDENTS
SATISFIED 65 53
DISSATISFIED 35 47
CANNOT 0 0
TOTAL 100 100
GRAPH
INFERENCE: The above table shows that, most of the people satisfied with current
performance appraisal system53% and 47% people dissatisfied.

TABLE-3
Q3. According to you who should appraise employee performance?
ATTRIBUTES NO OF
RESPONDENTS
%OF
RESPNDENTS
SUPERVISOR 75 53
SUBORDINATES 25 47
OTHERS 0 0
TOTAL 100 100
GRAPH
INFERENCE: From the above table shows that 53% of the people agree that superiors
and 47% with subordinates and 0% with others.

TABLE-4
Q4.What is the main benefit of performance appraisal system?
ATTRIBUTES NO OF
RESPONDENTS
%OF
RESPONDENTS
GROWTH 65 40
REWARDS 0 0
MOTIVATION 30 47
MISTAKES ARE
CORRECTED
5 13
TOTAL 100 100
GRAPH
INFERENCE: The above table shows that, 47% of the employees feel that motivation is
the only benefit of performance appraisal and 40% of employees feel growth and 13% with
mistakes.
TABLE-5
40%
0%47%
13%
Growth
Rewards
Motivation
Mistake

Q5. Whether you need training in performance appraisal system?
ATTRIBUTES NO OF
RESPONDENTS
%OF
RESPONDENTS
YES 60 67
NO 40 33
TOTAL 100 100
GRAPH
INFERENCE: From the above table shows that, 67% of the respondents agree with
training in performance appraisal system and rest of the 33% respondents does not agree.
TABLE-6
67%
33%
Yes
No

Q6.Do you feel that promotions are given based on performance?
ATTRIBUTES NO OF
RESPONDENTS
% OOF
RESPONDENTS
YES 80 53
NO 20 47
TOTAL 100 100
GRAPH
INFERENCE: From the above table inferred that 53% of respondents are agreed with
promotions made on performance and remaining 47% is not needed.
TABLE-7
53%
47% Yes
No

Q7. How do you feel about present job?
ATTREBUTES NO OF
RESPONDENTS
% OF
RESPONDENTS
HOBBY 15 7
INTERESTING 30 20
SATISFIED 55 73
TOTAL 100 100
GRAPH
INFERENCE: From the above table shows that, 73% of employees are satisfied with their
present job and 20% feel that there job is interesting and rest of the employees feel their
job as hobby.
TABLE-8
Q8: How often appraisal should be conducted in practice?
7%
20%
73%
Hobby
Interesting
Satisfied

ATTREBUTES NO OF
RESPONDENTS
%OF
RESPONDENTS
3MONTHS 15 0
6MONTHS 30 7
12MONTHS 55 93
TOTAL 100 100
GRAPH
INFERENCE: From the above table shows that, 73% of the respondents are satisfied with
their present job and 20% feel that there job is interesting and rest of the employees feel
their job as hobby.
TABLE-9
0 7
93
0
10
20
30
40
50
60
70
80
90
100
3MONTHS 6MONTHS 12MONTHS
%OF RESPONDENTS

Q9.Do you feel that performance appraisal systembe kept confidential?
ATTRIBUTES NO OF
RESPONDENTS
%OF
RESPONDENTS
YES 65 60
NO 35 40
TOTAL 100 100
GRAPH
INFERENCE: From the above table shows that, 93% of the respondents feel that the
appraisal should be conducted for every 12 months and 7% of the respondents feel that it
should be conducted for every 6months.
TABLE-10
60%
40%
Yes
No

Q10: Who evaluate the performance of employees ?
ATTRIBUTES NO OF
RESPONDENTS
%OF
RESPONDENTS
SUPERIORS 70 80
SUBORDINATES 30 20
TOTAL 100 100
GRAPH
INFERENCE: From the above table shows that, 80% of employees are evaluated by
superiors and 20% of the employees are evaluated by subordinates.
TABLE-11
Q11: How do you feel your appraisal interview to be?

ATTREBUTES NO OF
RESPONDENTS
%OF
RESPONDENTS
IN WRITTEN 35 27
FACE TO
FACE
65 73
TOTAL 100 100
GRAPH
INFERENCE: From the above table shows that, 73% of the employees feel that appraisal
interview should be as face to face and rest of them feel that should be in written.
TABLE-12
Q12: Does performance appraisal helps in career development?
27%
73%
In written
Face to face

ATTRIBUTES NO OF
RESPONDENTS
%OF
RESPONDENTS
YES 55 40
NO 45 60
TOTAL 100 100
GRAPH
INFERENCE: From the above table shows that, 60% of respondents feel that performance
appraisal will helps in career development and 40% respondents feel that it will not helps
in career development
TABLE-13
Q13: How do you prefer to handle job?

ATTREBUTES NO OF
RESPONDENTS
%OF
RESPONDENTS
ONE JOB AT A
TIME
56 93
ALL JOBS AT A
TIME
44 7
TOTAL 100 100
GRAPH
INFERENCE: From the above table shows that, majority of the respondents prefer to
handle one job at a time than all jobs.
TABLE-14
Q14: According to you, what is the purpose of performance appraisal?
93%
7%
One
All

ATTRIBUTES NO OF
RESPONDENTS
%OF
RESPONDENTS
ORGANIZATIONAL 30 40
PERSONAL 25 27
T&D 20 27
REWARDS 25 6
TOTAL 100 100
GRAPH
INFERENCE: From the above table shows that, 40% respondents says that performance
appraisal means to improve organizational effectiveness where as 27% of the respondents
says that performance appraisal is to improve personal effectiveness and recommended
for training and development needs and 6% says help in pay adjustments/rewards.
TABLE-15
Q15: Is the objective of appraisal system clear to all the employees ?
40%
27%
27%
6%
Organizational
Personal
T&D
Rewards

ATTRIBUTES NO OF
RESPONDENTS
%OF
RESPONDENTS
STRONGLY
AGREE
30 40
AGREE 30 33
DISAGREE 40 27
TOTAL 100 100
GRAPH
INFERENCE: From the above table 40% respondents strongly agreed that objectives of
the appraisal system clear to all the employees, and 33% agreed and 27% disagreed.
TABLE-16
Q16: Has your performance been enriched by any training you have undergone in
your field of working?

ATTRIBUTES NO OF
RESPONDENTS
%OF
RESPONDENTS
YES 65 47
NO 35 53
TOTAL 100 100
GRAPH
INFERENCE: From the above table shows that, 53% respondents feels that their
performance has not enriched by any training that they have under gone in field of working
were as 47% agree that the performance has enriched by training.
TABLE-17
Q17. Will the high performer’s performance be motivated further if he/she is
intimated regarding their performance?
47%
53%
Yes
No

ATTRIBUTES NO OF
RESPONDENTS
%OF
RESPONDENTS
YES 75 80
NO 25 20
TOTAL 100 100
GRAPH
INFERENCE: From the above table shows that, 80% of respondents will be motivated if
their superiors intimated their performance.
TABLE-18
Q18. How do you appreciate the current appraisal system?
80%
20%
Yes
No

ATTREBUTES NO OF
RESPONDENTS
% OF
RESPONDENTS
BETTER 30 33
BETTERWAY 15 0
CLEAR 20 20
SATISFACTION 35 47
TOTAL 100 100
.
GRAPH
INFERENCE: From the above table shows that, 47% of respondents appreciate the
current appraisal system by increasing job satisfaction. Where as 20% of respondents
appreciate it provides a clear communication of employees expectation.
TABLE-19
Q19. Do you think the performance appraisal should undergo change as a matter of
policy from time to time?
33%
0%
20%
47%
Better
Better way
Clear
Satisfaction

ATTERIBUTES NO OF
RESPONDENTS
%OF
RESPONDENTS
YES 80 100
NO 20 0
TOTAL 100 100
GRAPH
INFERENCE: The above table shows that, majority of respondents think that
performance appraisal should under go change as a matter of policy from time to time.
TABLE-20
Q20. Do you think the performance appraisal system is a waste of time for the
organization, appraiser and appraise?
60
0
0
10
20
30
40
50
60
YES NO
%OF RESPONDENTS

ATTRIBUTES NO OF
RESPONDENTS
% OF
RESPONDENTS
YES 20 0
NO 80 100
TOTAL 100 100
GRAPH
INFERENCE: From the above table shows that, there were nil percent (%) thinks that
performance appraisal is a waste of time for the organization.
TABLE-21
Q21. Does your boss provide you advice and assistance regarding your work?
ATTRIBUTES NO OF
RESPONDENTS
%OF
RESPONDENTS
0
60
0
10
20
30
40
50
60
YES NO
%OF RESPONDENTS

YES 75 93
NO 25 7
TOTAL 100 100
GRAPH
INFERENCE: The above table shows that, majority of respondents agree that their boss
provides advice and assistance regarding their work.
CHAPTER 5
5.1FINDINGS
 The appraisal system is such that employees are appraised by the superiors.
 Most of the members are satisfied the performance appraisal method.
93%
7%
Yes
No

 47% of the respondents felt that motivation was the main benefit of performance
appraisal system.
 73% of the respondents feel the performance appraisal interview should be as face
to face conversation.
 The current appraisal system is increasing the job satisfaction of employees.
 The respondents are strongly agreed that training needs can be decided.
 The respondents agreed that they are getting appropriations from the superiors only
to some extent.
 The management is paying much attention to the performance appraisal for rewards
and carrier enrichment of the employees.
 The process of conducting performance appraisal programs to low-level employees
is periodic orientation and for middle level management it is through counseling.
5.2 SUGGESTIONS
 The management should design training & development programs and carrer
development programs on identified skills or knowledge needs.
 Promotions of employees should be based on performance and not just on
experience.
 Appreciate good performers and motivate others for better performance.
 The evaluators should receive proper training in performance appraisal.

 The review meetings should conduct which is help to clarify their doubts
regarding their goals.
 The efforts, skills and abilities of the employee should also consider while
appraising the employees.
 Appreciation from superiors will make employees to render their best services to
the organization.
 A self appraisal system helps the employees to know their standards.
 The employees are informed that how they are ranked to peers, superiors and
subordinates.

5.3 CONCLUSION
 The performance which is conducted by the organization is effective.
 The management gives the promotions based on both merit and seniority.
 Most of the employees are satisfied with the performance appraisal which is
conducted by the organization.
 Hence , the performance appraisal is necessary for every organization to achieve
its objectives.

ANNEXURE
QUESTIONNAIRE
1. Whether the company should have a performance appraisal system?
a. Yes
b. No
2. Are you satisfied with current performance appraisal system?
a. Satisfied
b. Dissatisfied
c. Can not
3. According to you who should appraise employee performance?
a. Supervisor
b. Subordinates
c. Others
4. What is the main benefit of performance appraisal system?
a. Growth
b. Rewards
c. Motivation
d. Mistakes are corrected
5. Whether you need training in performance appraisal system?
a. Yes
b. No
6. Do you feel that promotions are given based on performance?
a. Yes
b. No

7. How do you feel about present job?
a. iam not satisfied with my job.
b.iam partially satisfied with my job.
c. iam satisfied with my present job.
8. How often appraisal should be conducted in practice?
a. 3 months
b. 6 months
c. 12 months
9. Do you feel that performance appraisal system be kept confidential?
a. Yes
b. No
10. Who evaluate the performance of employees ?
a. superior
b. subordinate.
11. How do you feel your appraisal interview to be?
a. In written
b. Face to face conversation.
12. Does the performance appraisal helps in career development ?
a. Yes
b. No
13. How do you prefer to handle job?
a. One job at a time
b. All jobs at a time.

14. According to you, what is the purpose of performance appraisal?
a. To improve organizational effectiveness.
b. To improve personal effectiveness.
c. Recommended for training and development needs.
d. Helps in pay adjustments/rewards.
15. Is the objective of the appraisal system clear to all the employees .?
a. Strongly agree
b. agree
c. disagree
16. Has your performance been enriched by any training you have undergone in your field
of working?
a. Yes
b. No
17. Will the high performer’s performance be motivated further if he/she is intimated
regarding their performance?
a. Yes
b. No
18. How do you appreciate the current appraisal system?
a. Opportunities to perform better
b. Task setting will induce people in better way
c. It provides a clear communication of employee’s expectation.
d. It increases job satisfaction.

19. Do you think the performance appraisal should undergo change as a matter of policy
from time to time?
a. Yes
b. No
20. Do you think the performance appraisal system is a waste of time for the
organization, appraiser and appraise?
a. Yes
b. No
21. Does your boss provide you advice and assistance regarding your work?
a. Yes
b. No

CHAPTER 6
BIBLIOGRAPHY
REFERENCE TEXT BOOKS:
TEXT BOOKS AUTHORS
1. Personnel Management Edwin B. Flippo
2. HR Management Ian Bread well & Len Holden
3. HR and Personnel Management K. Ashwathappa
4. Personnel/HRM Subba Rao and V. S. P Rao
WEBSITES:
www.mysoresandal.com
www.sandalsoaps.com
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