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  1. 1. “PERFORMANCE APPRISAL” With reference to JOCIL Ltd, GUNTURA Project Report submitted in partial fulfillment of the requirement for the award of MASTERS DEGREE IN BUSINESS ADMINISTRATION By P.SUJITH CHANDRA (Roll No: 1225111242) GITAM INSTITUTE OF MANAGEMENT GITAM UNIVERSITY (Established U/S 3 of UGC Act, 1956) VISAKHAPATNAM (2011-12) 1
  2. 2. ACKNOWLEDGEMENTIt is my pleasure to acknowledge and express my gratitude to all those whohelped me throughout in the successful completion of this project.I am very thankful to Sri. Mr N L Prasad (L.O) JOCIL Ltd, Guntur forextending support throughout the project.I wish to express my gratitude to Prof K Siva Rama Krishna, Dean &Principal, GITAM Institute of Management, GITAM University,Visakhapatnam, for giving me this valuable opportunity to experience thework culture in an organization.I am grateful to Prof P.Sheela (MBA,Ph.D), GITAM Institute ofManagement, GITAM University, Visakhapatnam for his/her continuousguidance to accomplish this project work, successfully. (Name of the student & Roll No.) P.Sujith Chandra 1225111242 2
  3. 3. CERTIFICATE This is to certify that the Project work entitled “Study on Performance appraisal atJOCIL Ltd, Guntur” has carried out and submitted by Mr. PEDDI SUJITH CHANDRA(1225111242) under my guidance by in partial and fulfillment of his Masters of BusinessAdministration at School Of Management Studies, University of Hyderabad. Prof P.Sheela MBA,Ph.D Professor Gitam Institute Management Gitam University 3
  4. 4. DECLARATION I hereby declare that this project entitled “Study on Performance appraisal atJOCIL Ltd, Guntur” has been done by me under guidance of Prof P.Sheela MBA,Ph.D This project partial fulfillment of the award of degree in ‘Masters in BusinessAdministration’.Place : PEDDI SUJITH CHANDRADate : 1225111242 Gitam Institute Management Gitam University 4
  5. 5. INDEXCHAPTER - 1 1.1 Human Resource Management - 1 1.2 Performance appraisal - 3CHAPTER - 2 2.1 Company profile - 9 2.2 Business and Strategies - 15CHAPTER - 3 3.1 Research - 21 3.2 Research Methodology - 22CHAPTER - 4 4.1 Analysis - 30CHAPTER - 5 5.1 Findings - 49 5.2 Suggestions and conclusion - 50I Questionnaire - 51 5
  6. 6. II Bibliography - 54 EXECUTIVE SUMMARYPerformance appraisal is the basic activity of human resource management of whichEmployer & Employee will assess their strengths and weakness for the sake of providingcompensation , like increments and salaries. This concept adopted by the most of theorganizations is an important part of the organization. As a manufacturing unit JOCILLtd. adopted the performance appraisal technique to assess their employees for the bettergrowth organization standards. To determine the satisfaction level of the employee andlevel of knowledge to the people in the organization a study has been conducted andresults obtained were descriptively analysed. To crosscheck the results interaction withthe employee was also done.The objective of study was designed to consider the fallowing objectives: • To study the performance appraisal method conducting by the JOCIL Ltd. • To analyze the awareness and satisfaction of the employee . • To identify how far organization succeed in conducting performance appraisal.A sample of 80 employees was taken from different levels such as engineers, supervisors,and operators. The data was collected from questionnaire which was prepared on thebasis of appraisal form of the company and analysis of data was carried out based on thequestionnaire data and interview method. It could be concluded that employee were littlesatisfied with the system and methodology of system found was strictly followed by theorganization. 6
  7. 7. CHAPTER-1 INTRODUCTION Human Resource Management Human resource management (HRM) is the strategic and coherent approach to themanagement of an organizations most valued assets - the people working there who individuallyand collectively contribute to the achievement of the objectives of the business “Human resource management is a collective implementation of managerial functionssuch as planning, organizing, directing and, controlling to reach the organization goals”Human Resource Management: Scope1. Personnel aspect-This is concerned with manpower planning, recruitment, selection,placement, transfer, promotion, training and development, layoff and retrenchment, remuneration,incentives, productivity etc.2. Welfare aspect-It deals with working conditions, facilities and amenities such as canteens, restand lunch rooms, housing, transport, medical assistance, education, health and safety, recreationfacilities, etc.3. Industrial relations aspect-This covers union-management relations, joint consultation,collective bargaining, grievance and disciplinary procedures, settlement of disputes, workersparticipation in management etc. 7
  8. 8. Functions of HRM: Based on the organization of task and implementation of methods we have two types offunctions, they are: • Managerial functions and • Objective functions Managerial functions are also called the core functionalities of human resourcemanagement, which will be deals with the planning, organizing, Directing and, Controlling. Amongthese directing is also called the leading. Objective functions are the active functionalities of human resource management whichhas substantially organizing capability in according to requirements of the organization. These aredrawn from the managerial functions for successful achievement of the organizational tasks.These includes the... • Employee planning. • Staffing. • Training and Development. • Employee evolution. • Pay roll management. • Welfare of the employee. Employee evolution is the major task for an organization because employee performancewill be done and motivation factor to the extent of the employee requirement. It includes theConducting the performance appraisal, feedback generation, giving the extra inputs that requiresfor the employee, compensation planning, Reviewing and auditing manpower management in the 8
  9. 9. organization… etc. PERFORMANCE APPRAISAL Performance appraisal is a formal system that evaluates the quality of a worker’sperformance; an appraisal should not be viewed as an end in itself, but rather as an importantprocess within a broader performance management system that links: • Organizational objectives • Day-to-day performance • Professional development • Rewards and incentivesWhat is the purpose of performance appraisal? • Professional development such as identifying strengths and weaknesses in performance, implementing strategies for improvement • Determining organizational training and development needs • Making and validating administrative decisions like pay, promotion, placement, and termination.etc. • Identifying systemic factors that are barriers to, or facilitators of, effective performance.Objectives of Performance appraisal: • To review the performance of the employees over a given period of time. 9
  10. 10. • To judge the gap between the actual and the desired performance. • To help the management in exercising organizational control. • Helps to strengthen the relationship and communication between superior – subordinates and management – employees. • To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. • To provide feedback to the employees regarding their past performance. • Provide information to assist in the other personal decisions in the organization. • Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. • To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. • To reduce the grievances of the employeesScope of Performance appraisal • Provide employees with a better understanding of their role and responsibilities. • Increase confidence through recognizing strengths while identifying training needs to improve weaknesses. • Improve working relationships and communication between supervisors and subordinates. • Increase commitment to organizational goals; develop employees into future supervisors. • Assist in personnel decisions such as promotions or allocating rewards, and allow time for self-reflection, self-appraisal and personal goal setting. 10
  11. 11. Effects of Performance appraisal On Careers of Employee: Performance appraisal helps to identify the hidden talents and potential of the individuals.Identifying these potential talents can help in preparing the individuals for higher responsibilitiesand positions in the future. The performance appraisal process in itself is developmental innature. It is also closely linked to other HR processes like helps to identify the training anddevelopment needs, promotions, demotions, changes in the compensation etc. A feedbackcommunicated in a positive manner goes a long way to motivate the employees and helps toidentify individual career developmental plans. Based on the evaluation, employees can developtheir career goals, achieve new levels of competencies and chart their career progression.Performance appraisal encourages employees to reinforce their strengths and overcome theirweaknessesTypes Of Performance Apprisal:1.Critical Incident Method: This format of performance appraisal is a method which is involved identifying anddescribing specific incidents where employees did something really well or that needs improvingduring their performance period.2. Weighted checklist method: In this style, performance appraisal is made under a method where the jobs beingevaluated based on descriptive statements about effective and ineffective behavior on jobs.3. Paired comparison analysis: This form of performance appraisal is a good way to make full use of the methods ofoptions. There will be a list of relevant options. Each option is in comparison with the others in thelist. The results will be calculated and then such option with highest score will be mostly chosen.4. Graphic rating scales: This format is considered the oldest and most popular method to assess theemployee’s performance.In this style of performance appraisal, the management just simply does checks on theperformance levels of their staff.5. Essay Evaluation method: In this style of performance appraisal, managers/ supervisors are required to figureout the strong and weak points of staff’s behaviors. Essay evaluation method is a non-quantitativetechnique. It is often mixed with the method the graphic rating scale.6. Behaviorally anchored rating scales: This formatted performance appraisal is based on making rates on behaviors orsets of indicators to determine the effectiveness or ineffectiveness of working performance. Theform is a mix of the rating scale and critical incident techniques to assess performance of thestaff. 11
  12. 12. 7. Performance ranking method: The performance appraisal of ranking is used to assess the working performanceof employees from the highest to lowest levels.Managers will make comparisons of an employee with the others, instead of making comparisonof each employee with some certain standards.8. Management By Objectives (MBO) method: MBO is a method of performance appraisal in which managers or employers set alist of objectives and make assessments on their performance on a regular basis, and finallymake rewards based on the results achieved. This method mostly cares about the resultsachieved (goals) but not to the way how employees can fulfill them.9. 360 degree performance appraisal: The style of 360 degree performance appraisal is a method that employees willgive confidential and anonymous assessments on their colleagues. This post also information thatcan be used as references for such methods of performance assessments of 720, 540, 180…10.Forced ranking (forced distribution): In this style of performance appraisal, employees are ranked in terms of forcedallocations.For instance, it is vital that the proportions be shared in the way that 10 or 20 % will be the highestlevels of performances, while 70 or 80% will be in the middle level and the rest will be in thelowest one.11. Behavioral Observation Scales: The method based on the scales of observation on behaviors is the one in whichimportant tasks that workers have performed during their working time will be assessed on aregular basis.Fundamentals of an appraisal system To develop a successful performance appraisal system, two criteria need to be met• Relevance and applicability to everyday work practice• Acceptability to appraisers and workers. A systematic approach to performance appraisal can help ensure that these twoimportant criteria are met. 12
  13. 13. How to conduct a performance appraisal The following five-step approach to conducting a systematic performance appraisal isrecommended: 1. Identify key performance criteria 2. Develop appraisal measures 3. Collect performance information from different sources 4. Conduct an appraisal interview 5. Evaluate the appraisal process.Step 1: Identify key performance criteria Perhaps one of the most challenging aspects of setting up a performance appraisal isdeciding what to assess. In essence, four key dimensions of performance should be considered ina performance appraisal.Key Dimensions of Performance:Competencies : Knowledge, skills, and abilities relevant to performanceBehaviors : Specific actions conducted and / or tasks performedResults / outcomes : Outputs, quantify able results, measurable outcomes and achievements, objectives attainedOrganizational citizenshipbehaviors : Actions that are over and above usual job responsibilities To ensure that the performance criteria are relevant to work practice and acceptable toappraisers and workers: i. Base the performance criteria on an up-to-date job description ii. Develop criteria in consultation with appraisers and workersStep 2: Develop appraisal measures Once clear and specific performance criteria have been developed, the next step is todecide how to assess workers’ performance. It is recommended that a structured and systematicapproach is taken to assessing performance. Problems that arise when an unstructured “blanksheet” approach is used include: • Increased chance of appraiser errors • Knowledge, skills and abilities most critical to job performance may be overlooked • Reduced consistency between appraisers • Perceptions of “subjectivity” in evaluations, which may in turn, reduce workers’ 13
  14. 14. satisfaction with, and acceptance of, appraisals.Step 3: Collect performance information from different sources Once the appraisal measures are developed, the next step involves collection of accurateperformance information. A common trap is to begin noting observations of workers just beforeconducting appraisals. This is likely to give an inaccurate picture of a worker’s performance.Ideally, workers’ performance should be observed in a systematic way over time .This methodensures the accuracy of information about their performances. Traditionally, it has been the sole responsibility of managers / supervisors to assessperformance. However, other organizational members can be a valuable source of information asthey are likely to have exposure to different aspects of a worker’s performance. This approach isknown as 360-degree feedback. For instance, coworkers can provide valuable information onteamwork skills, and subordinates can provide useful information on leadership style.Five different sources of performance appraisal information are considered here: i. Manager / supervisor appraisals ii. Self appraisals iii. Coworker appraisals iv. Subordinate appraisals v. Client appraisals.Step 4: Conduct an appraisal interviewThe next step in a performance appraisal is to conduct the appraisal interview. The two centralpurposes of the appraisal interview are to: • Reflect on past performance to identify major achievements, areas that require further development, and barriers / facilitators to effective performance • Identify goals and strategies for future work practice.Step 5: Evaluate the appraisal processAs with any organizational system, the performance appraisal process should undergo regularreview and improvement. 14
  15. 15. CHAPTER-2 Company Profile: JOCIL is a Public Limited Company incorporated in February 1978 as AndhraPradesh Oil and Chemical Industries Ltd (APOCIL). Listed in National Stock Exchange (NSE)Madras and Hyderabad Stock Exchanges Renamed as “Jayalakshmi Oil and ChemicalIndustries Limited” in 1982. Became a Subsidiary of “The Andhra Sugars Ltd” (ASL) on 27October 1988. ASL Group of Companies have diversified interests in Sugar, Chemicals suchas Caustic Soda, Acetic Acid, Industrial Alcohol, Sulfuric Acid, Aspirin etc., Petrochemicalsand Textiles at various locations in Andhra Pradesh, India. ASL is also the Sole Supplier ofRocket Fuel (UDMH) to ISRO. It renamed once again as “Jocil Limited” in 1992. 30 years ofexperience in the field of manufacture of Stearic Acid Flakes, Fatty Acids, Toilet Soap, SoapNoodles and Refined Glycerin. Stearic Acid Flakes are available in various grades for use inPharmaceuticals, Cosmetics, Textiles, Paints, Plastics, Tyres, Tread Rubber, Metal Polishand Other Industries. A 6 Mw Biomass Cogeneration Power Plant commissioned in 2001, tomeet captive requirements of Steam & Power, Exports Surplus Power to APSPDCL (PublicUtility Company). Continuous unbroken dividend paying record since 1988 – 89. It hasCelebrated Silver Jubilee in the year 2003. Company has Awarded ISO 9001:2000Certification by DNV in year 2004, Ventured into Wind energy in the Year 2005.Wind farm isregistered as CDM Project with UNFCCC in Year 2009.CODE OF CONDUCT – DIRECTORSThe Directors of the Company hereinafter referred to as "The Board" is committed to adopting,besides any of its obligations under relevant laws or regulations, the best relevant practices forcorporate governance. 15
  16. 16. This Code of best practices represents a blend of law, regulation and appropriate voluntarypractices that will enable the Company to attract financial and human capital, perform efficientlyand to generate economic value for shareholders while respecting the interests of stakeholdersand society as a whole.The principal attribute of the code is to ensure effective corporate governance, to enable theBoard to approve the Companys strategy and major business plans and decisions.A code of conduct (hereinafter referred to as "Code") is adopted as per the stipulations of ListingAgreement which is applicable to all the Directors of the Company.CODEThe Board will operate within all applicable laws and regulations. The Board will act within and inaccordance with the powers granted to them by the Companys articlesThe Board will act bonafide in the Companys interest, to use its powers and informationavailable for the business purposes and not exercise them for any collateral purpose and willensure that the Company is managed with due diligence, due regard to the interest of allstakeholders, and essentially for the benefit of all its shareholders. The Board will in allsincerity endeavor that the Companys activities ultimately add to the economic developmentof the Country and further the national interest.The Board will function within the framework of the economic, development and legal policies ofthe Government of India and shall not undertake nor participate in any task, debate orconversation that can reflect unfavorably on the dignity of our Nation or go against its interestsThe Board will meet regularly, at least once every quarter with prime concentration onstrategic issues and their approval, policy and control, delegation of powers, specifying issuesthat remain in the Boards domainThe Board will consider the following matters as and when deemed appropriate. • Annual operating plans and budgets and any updates. • Capital Budgets and any updates. 16
  17. 17. • Quarterly results for the Company and its operating divisions or business segments. • Minutes of meetings of audit committee and other committees of the Board. • Show cause, demand, prosecution notices and penalty notices which are materially important. • Fatal or serious accidents, dangerous occurrences, any material effluent or pollution problems. • Any material default in financial obligations to and by the Company, or substantial non-payment for goods sold by the Company. • Any issue which involves possible public or product liability claims of substantial nature. • Details of any joint venture or collaboration agreement. • Transactions that involve material payment towards goodwill, brand equity, intellectual property. • Significant labour problems and their proposed solution. Any significant development in Human Resources/Industrial Relations front like signing of wage agreement, implementation of Voluntary Retirement Scheme, etc. • Sale of material nature of investments, subsidiaries, assets, not in normal course of business. • Quarterly details of foreign exchange exposures and the steps taken by management to limit the risks of adverse foreign exchange rate movement, if material. • Non-compliance of any regulatory, statutory nature or listing requirements and shareholders service such as non-payment of dividend, delay in share transfer.Board will present a balanced, clear assessment of the Companys position. The Board willensure that the Directors report shall include a narrative consistent with the figures in the 17
  18. 18. accounts of the performance and prospects.The Board will ensure that the Annual Report shall include, inter-alia , a ManagementsDiscussion and Analysis Report as per SEBI guidelines and the Boards Report on CorporateGovernance (duly certified by the Auditors).CODE OF CONDUCT MANAGERSThe Code of Ethics & Conduct for the Senior Managers of the Company helps to maintain thestandards of business conduct for Jocil Limited and to ensure the compliance with legalrequirements. The purpose of the Code is to deter wrong doing and promote ethical conduct.The matters covered in this Code are of utmost importance to the Company, Shareholders,business partners and other stakeholders. Further these are essential so that the Companycan conduct the business in accordance with high ethical values. Managers of the Companyare the custodians of Information and assets. As such, the Code of Ethics for the SeniorManagers of the Company is codified as underCODEThe Code is applicable to the Senior Managers of the Company (hereinafter referred to as"Managers") as stipulated by the Management by way of Office Circular from time to time.Code of Ethics & Conduct for the Senior Managers of the Company:Managers will - • Affirm the code on annual basis as required by the revised clause 49 of the Listing Agreement. • avoid accepting any offer, payment, gift or anything of value from customers, vendors, consultants etc. that is perceived as intended, directly or indirectly, to influence any business decision, any commitment of fraud or opportunity for the commitment of any fraud. 18
  19. 19. • Proactively promote and be an example of ethical behavior as a responsible partner among peers, in the work environment and the community. • Share knowledge and maintain skills important and relevant to stakeholders needs. • Act in good faith, responsibly, with due care, competence and diligence, without misrepresenting material facts or allowing ones independent judgment to be subordinated. • comply with rules and regulations of all Public Authorities in all the geographies in which Jocil Limited operates • Respect the confidentiality of information acquired in the course of ones work except when authorized or otherwise legally obligated to disclose. • provide all stakeholders with information that is accurate, complete, objective, relevant, timely and understandable. • Strive to achieve responsible use of and control over all assets and resources employed or entrusted not use confidential information acquired in the course of ones work for personal advantage. • act with honesty and integrity, avoiding actual or apparent conflicts of interest in personal and professional relationshipsThe Company has well defined policies for • Quality • Consumer Safety • Safety, Health and Environment (SHE)Companys Philosophy: • To Conduct its Operations with Honesty, Integrity and Transparency • To be the Market Leader in its Field of Operations through Continual Improvement in Efficiency and Quality of Products & Services. • To be a Successful Profit Making Organization 19
  20. 20. • To Serve Society through Industry • To care for the Environment and the World in which we live • To have Concern for Employees, Shareholders, Customers and Business Associates alike.Business and Strategies :1. Business ---> Oleochemicals ---> Stearic Acid --->SpecificationsProduct offered in the form of free flowing flakes, in different grades and to suit various industrialapplications.User Industries: * Rubber * PVC * Cosmetics * Metal Polish * Paints * Tyres * Food Pharmaceuticals * Speciality Chemicals.Customers : *MRF * Elgitread * Nestle * HUL * Clariant * BASF * Century harma * Sun Pharma etc.Also manufacturesHigh purity products like 90% minimum Stearic AcidCustomer specific grades to suit specific industrial applications 20
  21. 21. 2.Business ---> Oleochemicals --->Distilled Fatty Acids --->SpecificationsDistilled Fatty Acids Manufactured from Vegetables Oils like Coconut Oil, Palm Kernel Oil, andRice Bran Oil.User Industries * Toilet Soap * Speciality Chemicals * Industrial Greases etc.Customers include * HUL * BASF * Emami * Bayer ABS Limited.Fractionated Products Manufactured – Caprylic, Capric, Lauric, Myristic, Palmitic, Stearic, Oleic, Erucic & combination of these fractions,with the Technology – Sulzer. A few of these are under trial production and will be available soonfor commercial sale. Refined Glycerine is a byproduct from the process of vegetableoils during the manufacture of fatty acids. Grades Offered are CP (ChemicallyPure) and IW (Industrial W hite). Business ---> Soap ---> Toilet Soap Decades of Association with FMCG majors Trusted Partners for Brand IntroductionContract ManufacturingPresent Soap Brands • Liril 2000 for HUL • Life Buoy Skin Guard for HUL • Superia Lemon Fresh for ITC • Superia Soft Sandal for ITC • Superia Milky Glow for ITC • Superia Fragrant Flower for ITC 21
  22. 22. • Superia Natural Glow for ITC • Superia Healthy Glow for ITC • Vivel Satin Soft for ITC • Vivel Ayurveda Essence for ITC • Manjal for MARICO • Parachute Jasmine for MARICOPast Soap Brands • Liril Icy Cool Mint for Hindustan Lever • Savlon for Johnson & Johnson • Chek Beauty (4 Variants) for Henkel India • Margo Natural Care for Henkel India • Lux Skin Carefor Hindustan Lever • Rexona Coconut for Hindustan Lever • Breeze for Hindustan Lever • Margo for Calcutta Chemical Company • Shikakai for Swastic Surfactants andProduct can be offered to suit Customer RequirmentsStrengthsFlexibility to Manufacture Five Diffrent Grades at a time, 250 tpd of Installed Capacity.Translucent Noodles and Premium Noodles of High QualityOur Customers are: * HUL * ITC * Marico * Reckitt Benckiser * Emami 22
  23. 23. * Jyothy Labs * Henkel India etc.,Extending support in the areas of Research & Development of New SoapProducts, Coloured Noodles,Strands and BitsPremium and Translucent Soaps like * Liril Icy Cool * Savlon * Margo Natural * Chek etc., brands have been developed at Jocil.Contract ManufacturingW ell known for * Product know-how * Strong Quality Control * Modern Facilities * Total Commitment * Responsiveness * Team W orkLong Standing and Continuing Association with FMCG majors * HUL * Johnson & Johnson * Henkel India * Reckitt BenckiserTrusted for * High Quality of Products * Meeting Delivery Commitments * Accommodating Changing Customer SchedulesHighly Responsive to Customer 23
  24. 24. * Enquires * Suggestions * ComplaintsSupport for R&D of Introductory ProductsCompany Achievements Continuous unbroken dividend paying record since 1988-89. Celebrated Silver Jubilee in the year 2003. ISO 9001:2000 Certification by DNV in year 2004. Ventured into Wind energy in the Year 2005. Wind farm is registered as CDM Project with UNFCCC in Year 2009. CHAPTER-3 RESEARCH METHODOLOGY“Research is simply a systematic and refined technique of thinking, employing specialized tools,instruments, and procedures in order to obtain a more adequate solution of a problem than wouldbe possible under ordinary means. It starts with a problem, collects data or facts, analysis thesecritically and reaches decisions based on the actual evidence. It evolves original work instead ofmere exercise of personal. It evolves from a genuine desire to know rather than a desire to provesomething. It is quantitative, seeking to know not only what but how much, and measurement istherefore, a central feature of it.” 24
  25. 25. OBJECTIVES: • To study the performance appraisal method conducting by the JOCIL Ltd. • To analyze the awareness and satisfaction of the employee in. • To identify how far organization succeed in conducting performance appraisal.HYPOTHESIS:Does the Performance Appraisal at JOCIL Ltd. give the positive and effective response fromemployee?STUDY AREA AND PROBLEM DEFINITION:Conducting study on Performance appraisal at JOCIL Ltd, Guntur, which is having all type ofemployees as it is manufacturing unit for different products. Rating Scale Performance appraisalis using by the company by the last few years with effective and deliberate response form theemployees. Performance Appraisal is one of the key factor for analyzing the employee strengthand weakness to provide compensation according to their performance which is for the growth ofthe organization.TYPE OF RESEARCH:The present project is Descriptive in nature, the data based on facts collected with the help of thetools and presented in the form of pie chart and bar-charts, and percentages, describing presentstatus of the appraisal technique adopted by the organization. • Sample size : 80 employees(Engineers, Supervisors, and operators) • Mode of data collection : Questionnaire and interview method • Data collection tool : Questionnaire.SOURCE OF DATA COLLECTION:Data is the collection of the individual records in the form of numerical, words…etc for theevidence of research. This can be done using the collection from different methods.PRIMARY DATA: The data that has been analyzed and observed by the researcher for the firsttime to their knowledge. It is considered more reliable. • Primary data collected form Engineers, Supervisors and Operators, with respect to the content like their satisfaction, knowledge, feedback, Objectives of appraisal form…etc. 25
  26. 26. SECONDARY DATA: This data is the statistics not gathered form immediate study at hand but forsome other purpose. The secondary data for the study was collected mainly from appraisal form,website.SAMPLE DESIGN:It is definite plan for obtaining a sample from a given population. It refers to the technique or theprocedure the researcher would adopt in selecting items for the sample.POPULATION: It refers to the aggregate of data source or any aggregate from which data iscollected .Unrevised is the target group of study and is finite.SAMPLE SIZE: A sample is a small portion of the population. In the study a sample of 80employees who are engineers, supervisors and operators.TOOLS AND TECHNIQUES USED FOR ANALYSIS:The basic tools used for the study were questionnaire and interview methods.QUESTIONNAIRE: A questionnaire handed with engineers, supervisors, and operators based onthe various aspects of performance appraisal form. Questionnaire was prepared on the basiscontent in appraisal form of the company which is helpful to understand and brings the awarenessabout the technique.INTERVIEW: Continuous interaction with various industry people provided me knowledge onvarious helpful industry activities. And satisfaction and assessment level employee, trainingprograms within in the organization came to figure in mind.The following are the techniques used to analyze the data collected.PIE DIAGRAM: The circle is divided into number of sectors representing the values of the data inidentifying the accurate distribution.TABULATION: The classified data is represented in an orderly way and this calls for systematicrepresentation of data. CAPTER-4 DATA ANALYSISANALYSIS OF APPRAISAL FORM:Rating scales of performance appraisal form: As JOCIL Ltd using the method of rating scalemechanism for conducting appraisal of the employee the questionnaire was designed on thebasis of the content in the appraisal form. 26
  27. 27. CONTENTS OF PERFORMANCE APPRAISAL FORM:1. Quality of work • Consider accuracy, thoroughness, effectiveness. • Pressure, ability to meet standards of quality. • Use of time and volume of work accomplished. • Work output matches the expectations established.2. Quantity of work • Competence, thoroughness, and efficiency of work regardless of volume. • Neatness and accuracy.3. Teamwork: • Establish and maintain effective working relationship with others. • Shares information and resources with others • Follows instructions of supervisor and respond to requests from others in the team in a helpful manner. • Contributing work and effort to group performance to meet agreed upon objectives and achieve team success4. Job knowledge • Application of appropriate level of technical and procedural knowledge in specific field • Degree of technical competence • Understanding of job procedures, methods, facts and information related to assignments. • Perform duties with minimal supervision but seek guidance where and when appropriate to the job, consults the appropriate staff5. Initiative • Consider the extent to which the employees sets own constructive work practice and recommends and creates own procedures. • Self-starter, develop and implement new methods, procedures, solutions, concepts, designs and/or applications of existing designs or procedures. • Accepts additional challenges and responsibilities and willingly assist others, self-reliant. • Completes assignment on time. 27
  28. 28. 6. Interpersonal relations • Consider the extent to which the employee is cooperative, considerate, and tactful in dealing with supervisors, subordinates, peers, faculty, students and others.7. Health and safety compliance • The degree to which he or she complies with or over sees the compliance with university safety rules. • The following are also to be completed for supervisory personnel and members of the administrative staff.8. Communications abilitiesPerformance appraisal of communications includes elements as: • Ability to listen and understand information; • Presents information in a clear and concise manner. • Knows appropriate way of communicating with immediate superiors and the management • Demonstrates respect for all individuals in all forms of communication9. Planning and organizing: • Adapting to changes and using resources effectively; • Maintains confidentiality as appropriate. • Setting objectives, establishing priorities, developing plans; • Arranging work schedules and prioritizing work to meet deadlines. • Know when to ask for clarification before proceeding on a work project.10. Problem analysis and decision making • Anticipating problems and facilitate problem resolution. • Willingness to make necessary and immediate decisions given incomplete information. • Understanding practical and workable solutions.11. Staff development • The extent to which the individual provides guidance and opportunities to his or her staff for their development and advancement in the university. 28
  29. 29. 12. Dependability • Starts work at appropriate time. • Respects time allowed for breaks and lunch. • Helps ensure work duties are covered when absent.QUESTIONNAIRE ANALYSIS:Analysis of data has taken out based on the data collected with questionnaire methodology of 80employees as sample is the interpretation of the data for the evaluation of performanceappraisal system with the organization.1. Do you have knowledge on performance appraisal system fallowed by your organization? 29
  30. 30. Parameters Yes Partly No Well-known Responses 43 35 0 2 Percentages 53.75 43.75 0 2.5 The above inference shows that awareness of PA system in the organizationwhich is 54% people knows about this and 44% people knowspartly. The above data states that the employees must be appraised of the system and itssignificanceand its contribution to increase the productivity.2. Do u Know the reason why performance appraisal system required? Responses yes % No % To give the promotions 68 85 12 15 To increase the salaries 77 96.25 3 3.75 To evaluate the employee ability 68 85 12 15 To give the training where it needed 40 50 40 50 For job rotations 33 41.25 47 58.75 30
  31. 31. Company will conduct the performance appraisal to consider promotions,increments, and training assessments where it is required, which gives the clear idea aboutthe employee status at the workforce.From the above table it is clearly shown thatmajority of employees felt that the performance apprisal used by the organisation is toincrease the salaries,followed by promotions and to evaluate employees ability amongwhich the least is for job rotations.3. Who will appraise you? Parameters supervisor immediate superior HR department others Responses 18 44 7 11 Percentages 22.5 55 8.75 13.75 31
  32. 32. Performance appraisal conducted by the different people on the basis of employeedesignation and cadre of the employee in the company. Form the above inference theperformance appraisal is conducted by the supervisors , HR department and by the head of thedepartments. As it is manufacturing based company 22% are supervisor and asst. operators, 55%are immediate superiors , and 9% are HR professionals who conduct the apprisal for Managers. .4. On what basis does performance appraisal be conduct? Parameters based on relationship with presence and work superiors productivity Others Responses 59 12 5 4 Percentages 73.75 15 6.25 5 32
  33. 33. Performance appraisal will conduct on the basis work and productivity of the employee. From the inference we can observe that 74% employees are appraised based on work. When the strategic enlargement is required in a company the apprisal system should focus on the work, presence of the employee with the productivity.5% of the respondents are not clear as to why performance apprisal is carried out. 5. What kind of performance appraisal technique is used?Parameters raking check list confidential performance easy scale method report critical incident test methodResponses 67 1 5 7 0 0Percentages 83.75 1.25 6.25 8.75 0 0 33
  34. 34. Jocil Ltd is fallowing the grading mechanism which is suitable for themanufacturing unit. The above data clearly states that the compny uses the Ranking Scaletechnique to appraise the employees.The data also reveals that the Performance apprisal& Easy Method is not being followed.6. How often performance appraisal is conducted? Parameters once in a every once in 3 year once in 6 months week months Responses 66 10 2 2 Percentages 82.5 12.5 2.5 2.5 34
  35. 35. From the above inference the company will conducts the appraisal yearlyonce but there is also a need that the apprisal system has to be carried out to find need fortraining and also to enhance the productivity.Jocil Ltd conducts the apprisal yearly onceto give increements and promotions.7. What do you feel about Performance Apprisal system? Above Parameters good average bad aveg. Responses 35 38 6 1 Percentages 43.75 47.5 7.5 1.25 35
  36. 36. The above data clearly shows that majority of the respondents feel that thePerformance Apprisal system is average followed with 43.7% says it good.So there is aneed for the company to make the employee understand the significance of PerformanceApprisal System.8. Does performance appraisal enhance your potential at work? Parameters true partly not true very true Responses 31 36 9 4 Percentages 38.75 45 11.25 5 36
  37. 37. ` The above inference implies that people are satisfied with the PA system in Jocil Ltd believe that it provides scope for developing their potential. This may be due to the fact that the self-appraised of the appraise invites suggestions on job enrichment, training needs and steps to be taken to improve individual’s effectiveness. Whereas the above inference showing that potential level of increment is 45% partly so company has to improve in the sense of giving complete backup to the employee.9. 9.Do you have self-appraisal system? Parameters yes no Responses 44 36 Percentages 55 45 37
  38. 38. The presence of self-appraisal procedure in the PA appraisal system is an important reason for the above inference. The self-appraisal includes questions on major achievements, constraints in performance, type of training required, tasks or activities undertaken successfully during the year, problems faced etc. It also includes suggestions on making the job interesting and challenging and plans to improve effectiveness. Due to this fact, most of the employees may have felt that they were participating actively in their own appraisal by self -review and reflection on various issues.10. Does employee get the regular feedback? Parameters Yes no Responses 35 45 Percentages 43.75 56.25 38
  39. 39. The above inference shows that the PA system Company does not giving the feedbackabout performance to its employees. It helps anticipating work needs in order to arrange work inlogical order. It also helps in devising efficient methods to attain pre-determined plans. Again dueto flexibility in job content, some people may have found problems in planning their performancesystematically.11. How much you have satisfied with the system? . Parameters a.10-30% b.40%-60% c.60%-80% d.100% Responses 14 28 30 8 Percentages 17.5 35 37.5 10 39
  40. 40. The employees do not want a fixed increment for their great performance. The company should make recommendations related to salary on the basis of regular performance feedback about every employee since the frequency of performance measurement varies from department to department; it is difficult to carry out this work smoothly so the satisfaction level low.12. Do you feel the fallowing are necessary for employee appraisal? Yes % No % Discipline 80 100 0 0 Attendance 79 98.75 1 1.25 Job knowledge 78 97.5 2 2.5 40
  41. 41. Relation with employee 80 100 0 0 Plan of work 78 97.5 2 2.5 Decision making 75 93.75 5 6.25 Guidance 74 92.5 6 7.5 Performance 80 100 0 0 Absenteeism 57 71.25 23 28.75 Integration 74 92.5 6 7.5 Dependency 75 93.75 5 6.25 Participation 80 100 0 0 A performance appraisal system, which is perceived as bias -free by its executives, is an achievement for the organization. In the PA system the reporting officer appraises a section of people whereas the reviewing officer appraises the performance of an entire department. Also the reviewing officer is the immediate superior of reporting officer. Any disagreement between the assessments of an employee has to be duly discussed and recorded. Also, any noticeable difference of opinion between self-appraisal and appraisal by reporting officer has to be accounted for. All the above factors help in correcting the biases, if any of reporting officer.13. Are you facing any fallowing problem during appraisal? yes % No Analysis of skill 17 21.25 63 78.75 Usage of logics 8 10 72 90 41
  42. 42. Self-opinion description 12 15 68 85 Participation in decision making 6 7.5 74 92.5 Unable to reveal self description 15 18.75 65 81.25 Jocil Ltd. Performing the appraisal in a sequential manner like appraisal by the supervisor, immediate superiors which makes the proper meaning like ordering in the top to bottom which is a correct in the sense of analyzing the employee by the their superios.14. Do you think performance appraisal system gives the real justice? Parameters yes partly no 42
  43. 43. Responses 18 50 12 Percentages 22.5 62.5 15 Performance appraisal will give the employee ability to the organization and compensation in the form of increments and promotions. If the implementation reaches the in the parallel level this system will gives the real justices for every employee. From the inference 65% of the people are satisfied with their appraisal.15. Have been selected for any training after PA system conducted? 43
  44. 44. Parameters yes no Responses 29 51 Percentages 36.25 63.75 Performance appraisal is major asset for employee estimation it gives the employee status whether he require the training or not and the require areas for training. So performance appraisal will choose the employee for training.16. Does training will effects your performance? 44
  45. 45. Parameters yes no Responses 52 28 Percentages 65 35 For every employee training is required to take the right job at the right place at the same time when the new work is entered in the organization training is needed for analyzing the new operations. So the company needs training to increase the efficiency and to polish the work where they are in.17. Does Performance appraisal give the improvement in promotions and salaries? 45
  46. 46. Parameters Yes Partly No Responses 28 43 9 Percentages 35 53.75 11.25 The performance appraisal is completely need based the organization recognizes and promotes high achievers only if there are vacancies available in the organization by finding their strengths and weaknesses. This has a negative impact on people who are not rewarded and promoted duly for their good performance. There should be a system of rewarding employees either in monetary terms or in terms of recognition.18. Does your company conduct the counseling after the appraisal? 46
  47. 47. Parameters yes partly no Responses 18 36 26 Percentages 22.5 45 32.5 For growth of the company employee counseling is more important to reach the organization goals, Jocil Ltd. is providing the counseling on safety measurements and welfare activities only.19. What kind of an appraisal system will bring out the best of you? 47
  48. 48. Parameters Appraisal by all Appraisal by Appraisal by Appraisal by reference superiors immediate superior reference team team and selfResponses 8 50 10 12Percentages 10 62.5 12.5 15 This shows that the relationship between appraiser and appraise, in Jocil Ltd, with respect to planning the performance is quite good. The subordinate in planning his performance. The appraiser helps appraise in testing the soundness of his goals as well as of his plans for achieving them. This implies that there is active participation of both appraiser and appraise in performance planning. The reason behind ‘Not True’ answer may be due to the fact that many jobs in Jocil are not well defined and therefore an elaborate planning on them is not done. CAHPTER-5 48
  49. 49. FINDINGS1) Presence of a firmly implemented career plan- good sense of growth.2) High proportion of routine work- during training and immediately after.3) Organization climate- • Well analyzed goals are set. • Good and effective performance appraisal strategies applied. • All the strategies are fair and objective. • The employees are well aware of what is expected of them. • Proper feedback is not given by management. • Supervisors are patient with the employees’ problems. • Good performance leads to annual increments and promotions. • Training and development programs are to be improved. • The purpose of Performance Appraisal System followed in the company is fulfilled. SUGGESTIONS 49
  50. 50. Performance appraisal technique is meant for assessing the employee strengths and weakness, to provide compensation to the employee. So that company should concentrate more on individual development and reward for employee work should be there. If implementation and analysis on the paper implements in more physical activity the satisfaction level of the employee will increase as well as path to reach the organization goal also easy. CONCLUSIONS The JOCIL Ltd adopted the rating scale performance appraisal mechanism which mostsuitable for the manufacturing unit, since it is an agro based manufacturing company. Theemployee satisfaction average compare to the executive level employees. The certainty in thetechnique is being maintained from the last 10 years in the company. Organization is widelyusing the appraisal method for the beneficiary of the employee in the sense of promotionsand increment in salary.The finding can be found from the analysis of data collected in JOCIL Ltd. 1. The knowledge on performance appraisal to the employee is good and some of them are having just knowledge on the technique. 2. Most of the employees are known that who will conduct the appraisal and when it will conduct but reaching the knowledge of appraisal system to every employee is required. 3. Majority of the employee satisfaction is 47.5% average on the technique used within the organization. 4. Employees are feeling the performance appraisal technique will gives the good result if the utilization is implements perfectly. 5. The chance for improving the self-appraisal should be more because 45% of the employee feeling there is no chance for self-appraisal, it will increase potential to the organization. 6. Proper feedback should be given to the management cadre staff at fixed time periods, so that the employee increase the performance based on their remarks. 7. Training and counseling classes are less in according to the data; it should be improved for the befit of the organization goals and Effective training and development programs should be held. 50
  51. 51. 8. Exemplary rewards should be given for unique achievements of the employees.9. Employees are facing some problem with decision making in the work culture and in the Free hand in decision making.10. Performance appraisal system should be extensively used in job rotation AND up gradation of basic qualification of all workers to be taken in future based on their performance.11. Uniform growth is required in the salaries and promotions, because it will gives the employee satisfaction in high level which is for the achievement of the organization. Questionnaire 51
  52. 52. Employee details:Name : Age :Sex : Experience :Job details : 1. Are you aware that your organization fallowing the performance appraisal system? a) yes b) partly c) no d) well known 2. Why performance appraisal system required? Yes No a) To give the promotions ( ) ( ) b) To increase the salaries ( ) ( ) c) To evaluate the employee ability ( ) ( ) d) To give the training where it needed ( ) ( ) e) For job rotations ( ) ( ) 3. Who will appraise you? a) supervisor b) immediate superior c) HR department d) others 4. On what basis does performance appraisal will conduct? a) based on work b) relationship with superiors c) presence and productivity d) others 5. What kind of performance appraisal will conduct? a) raking scale b) check list method c) confidential report d) performance test e) critical incident f) easy method 6. How often performance appraisal does conducts? a) once in a year b) once in 6 months c) every week d) once in 3 months 7. What do you feel about this system? a) good b) average c) bad d) above average 8. Does performance appraisal give the potential to your work? a) true b) partly c) not true 9. Do you have self appraisal system? 52
  53. 53. a) Yes b) no10. Does employee get the regular feed back? a) Yes b) no11. How much you have satisfied with your company PA system? a) 10-30% b) 40-60% c) 60-80% d) 100%12. Do you feel the fallowing are necessary for employee appraisal? Yes No a) Discipline ( ) ( ) b) Attendance ( ) ( ) c) Job knowledge ( ) ( ) d) Relation with employee ( ) ( ) e) Plan of work ( ) ( ) f) Decision making ( ) ( ) g) Guidance ( ) ( ) h) Performance ( ) ( ) i) Absenteeism ( ) ( ) j) Dependency ( ) ( ) k) Integration ( ) ( ) l) Participation ( ) ( )13. Are you facing any fallowing problem during appraisal? Yes No a) Analysis of skill ( ) ( ) b) Usage of logics ( ) ( ) c) Self-opinion description ( ) ( ) d) Participation in decision making ( ) ( ) e) Unable to reveal self description ( ) ( )14. Do you think performance appraisal system gives the real justice? a) yes b) partly c) no15. Have been selected for any training after the appraisal conducted? 53
  54. 54. a) yes b) no16. Does training will effects your performance? a) yes b) no17. Does Performance appraisal give the improvement in promotions and salaries? a) true b) partly c) not true d) very true18. Does your company conduct the counseling after the appraisal? a) yes b) partly c) no19. What kind of an appraisal system will bring out the best of you? a) appraisal by all superiors b) appraisal by immediate superior c) appraisal by reference team c) appraisal by reference team and self 54
  55. 55. BIBLIOGRAPHY • T V Rao, 1999, Appraisal & Development ,Managerial Performance , T V Rao Learning systems Pvt. Ltd, Excel Books • Carey and Janice Keefe, 2003, Performance appraisal Phrase Book , Adams Media • Carl G.Thor ,2004, Designing Feedback , Viava Management Library. • Angelo S.DeNisi, 1996, A Cognitive approach to performance appraisal, published in the Taylor & Francis e-Library. • Jan Jonker & Bartjan Pennink, 2010, The Essence of Research Methodology, Springer- Verlag Berlin Heidelberg . • P. Subba Rao, 2006, Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing House.Web Resources: • • • • 55