50288440 performance appraisal project report

8/3/2019 50288440 Performance Appraisal Project Report

1/74

Visit hrmba.blogspot.com for more project reports, notes etc.

CHAPTER 1

a. Human Resources Management

A Theoretical framework

The Human Resources Management (HRM) function includes a variety of

activities, and key among them is deciding what staffing needs you have and

whether to use independent contractors or hire employees to fill these needs,

recruiting and training the best employees, ensuring they are high performers,dealing with performance issues, and ensuring your personnel and management

practices conform to various regulations. Activities also include managing your

approach to employee benefits and compensation, employee records and

personnel policies. Usually small businesses (for-profit or nonprofit) have to carry

out these activities themselves because they can't yet afford part- or full-time

help. However, they should always ensure that employees have -- and are aware

of -- personnel policies which conform to current regulations. These policies are

often in the form of employee manuals, which all employees have.

Note that some people distinguish a difference between HRM (a major

management activity) and HRD (Human Resource Development, a profession).

Those people might include HRM in HRD, explaining that HRD includes the

broader range of activities to develop personnel inside of organizations,

including, e.g., career development, training, organization development, etc.

There is a long-standing argument about where HR-related functions

should be organized into large organizations, e.g., "should HR be in the

Organization Development department or the other way around?"

1


2/74

The HRM function and HRD profession have undergone tremendous

change over the past 20-30 years. Many years ago, large organizations looked to

the "Personnel Department," mostly to manage the paperwork around hiring and

paying people. More recently, organizations consider the "HR Department" as

playing a major role in staffing, training and helping to manage people so that

people and the organization are performing at maximum capability in a highly

fulfilling manner.

After you have invested considerable time and money recruiting and

training your employees, you must now determine how to make sure those

valuable employees are productive and get them to remain loyal to your firm.

Retention of employees is essential to maintain client relationships and keeprecruiting and training costs in line. Losing an experienced employee almost

always results in significant costs to your firm. The keys to employee satisfaction

and retention are founded on strong leadership and sound management

practices. If you can master these arts, you should have happy, loyal employees

and clients, resulting in growth, profits and personal gratification. This article will

discuss key factors in motivating and retaining good people.

Operating Systems

The foundation of an efficient and effective workplace is the structure,

discipline and consistency provided by well-conceived systematic operating

methods. World-class companies like Disney, McDonalds and Ritz Carleton all

have well defined operating methods. A policies and procedures (P&P) manual is

critical to ensure that employees understand what is expected of them and know

how they should handle the myriad of duties and responsibilities in the day-to-

day operation of the office. The P&P manual spells out how you would like things

done in your office and your expectations for the behavior of your employees. As

your operation grows larger, the system becomes more important because your

ability to oversee and communicate directly and frequently with each employee

2
http://www.zeromillion.com/business/employee-motivate.html#%23http://www.zeromillion.com/business/employee-motivate.html#%23


3/74

becomes more difficult. Written operating systems are absolutely essential when

you expand to more than one office location.

Training

Pre-work training should include a review of your policies and procedures,

with special emphasis on the most important subjects. (Each employee should

receive a personal copy of your P&P Manual to read before coming to the

training class.) In addition to training in your policies and procedures, customer

service and marketing should be covered at length. Special emphasis should be

placed on your corporate culture. New employees need more training than priors,

but all employees should receive training each year. New employees should also

have several days of on-the-job training with the office manager or experienced

employees before beginning their position; and they should not be left on their

own in the office until they are experienced enough to feel confident. Many of the

frustrations employees feel on the job--as well as most errors and client

problems--are due to inadequate training. Comprehensive training will make your

life as a manager much easier, and your employees and clients will be happier.

Tool

Employee costs constitute the greatest expense in any service business.

Not giving your employees adequate tools to do the job is penny wise and pound

foolish. Computers need not be state-of-the-art, but they do need to be fast and

reliable enough to minimize down time and reduce employee and client

frustration. If your office is not operating with a Local Area Network (LAN), you

3
http://www.zeromillion.com/business/employee-motivate.html#%23http://www.zeromillion.com/business/employee-motivate.html#%23


4/74

should set one up without delay. A LAN manages printer sharing and centralizes

client files for easy computer cross-checking, e-filing., and report writing. Copiers

should be reliable and fast, with automatic feed, and ample supplies always on

hand. A fax is no longer a costly luxury for most offices, but a necessity. Internet

access is almost as important as the phone for effective communication and is

becoming more essential for research. Don't forget to provide the little things, like

reliable staplers, staple removers, scissors, pens, post-its, business card holders,

etc. An appointment book, a Rolodex (orsoftware address book), and reference

books and resources should also be provided. Comfortable, functional office

furniture and adequate shelving and storage are also essential. Don't forget aids

for employees with special needs, such as under-desk computer drawers and

keyboard & mouse cushions. At Peoples Income Tax, we use checklists of office

furnishings, equipment and supplies used to take inventory and request missing

or shortage items. Attention to detail and providing adequate tools to do the job

will eliminate a key source of employee frustration and increase employee

productivity and satisfaction.

Office atmosphere

How your employees feel about their jobs is greatly influenced by your

office atmosphere. Extravagance is not necessary, but the office should be

attractively decorated and a pleasant place to work. Little things like a fresh coat

of paint and a wallpaper border make a big difference. A stereo (with ceiling

speakers) tuned to a soft neutral music enhances the office atmosphere and

creates an illusion of privacy. Dont neglect the back room and the rest room. We

pay as much attention to decorating and appointing our rest rooms as we do our

client reception areas. We also provide a microwave and refrigerator for the back

room of every office and, space permitting, a table and chairs where our

associates can eat. The impression you make on your employees is just as

important as the image you project to your clients. Keeping the office clean and

uncluttered requires the cooperation of all employees, and you should insist that

every employee pitches in to help. However, you should regularly hire

4
http://www.zeromillion.com/business/employee-motivate.html#%23http://www.zeromillion.com/business/employee-motivate.html#%23http://www.zeromillion.com/business/employee-motivate.html#%23http://www.zeromillion.com/business/employee-motivate.html#%23http://www.zeromillion.com/business/employee-motivate.html#%23http://www.zeromillion.com/business/employee-motivate.html#%23http://www.zeromillion.com/business/employee-motivate.html#%23http://www.zeromillion.com/business/employee-motivate.html#%23


5/74

contractors for heavy cleaning (e.g., carpet, windows and restroom). Your

employees attitudes are affected by their physical work environment; make sure

it is positive!

Support

Your employees will appreciate having adequate support. They need

someone readily available to help when they have questions or encounter

problems. Support can be provided on-site by an office manager or veteran

employee or by telephone or e-mail when on-site help is not available. Having

adequate help to properly serve all clients in the office is also essential for

employee morale. The important point is that your people should not feel like

they are out there on their own with no one to turn to when they need help. If they

feel this way, they might as well go into business on their own.

Corporate Culture

World-class companies always have in common World-class cultures.

Leaders of such businesses recognize that their companies exist to satisfy a

social need. Profits are not the goal, but are a byproduct of meeting the needs of

customers and employees. Businesses also have a responsibility to give back to

the communities in which they operate. Most employees also have a need to

make meaningful contributions to society through their work. They also like to

take pride in their work and deliver quality products and services. And they need

to continue to learn and grow professionally. A good corporate culture enables

employees to combine their strengths to meet these mutual needs as part of a

dynamic team.

Your companys culture starts with your companys mission and values, which

should be well thought-out and articulated in writing. A mission statement and set

of guiding principles is typically developed by the companys owner or CEO to

reflect his or her business philosophy. Input should also be solicited from key

employees. The mission statement and guiding principles of Peoples Income Tax

5


6/74

is provided as an example (Exhibit 2). When hiring new employees, it is essential

to confirm their understanding of and agreement with your company philosophy.

Your values must not merely be lip service, but should be internalized and

practiced daily by all employees. As the owner or CEO, you must set the

standard for your people.

Compensation

A performance-based compensation plan should be designed to

encourage your employees to behave in ways that will result in attainment of the

goals of your Company, while also meeting your employees personal objectives.

Company goals usually include growth, profitability, quality service, efficiency,

effectiveness, and image and reputation. To attract desirable employees, your

base pay and earnings potential should be competitive within your industry

(equal to or better than your main competitors for employees). The pay plan must

be objective and fair to all employees. Rewards should be commensurate with

contributions. The behaviors and attitude your pay plan should encourage

include honesty, professional pride, continuing professional education, loyalty,

thoroughness, accuracy, efficiency, teamwork, salesmanship, courtesy, concern

for clients, self-direction, frugality and long-term thinking. Peoples compensation

plan, devised with these factors in mind, includes a competitive guaranteed wage

as a draw against commissions for individual and office production. Additional

commissions are paid for experience, helping to generate office revenue growth,

and attaining and maintaining professional. Establishing a sound compensation

plan is one of the most important projects you will undertake. Once the plan is

established, it is difficult to make radical changes. Your compensation plan is an

essential element of your ability to compete effectively.

Benefits

Providing whatever benefits you can put you in a better competitive

position to attract and retain seasonal employees. A profit sharing plan could be

6


7/74

adopted for all employees to share in the profit pool in proportion to their annual

earnings relative to total earnings of all employees. The profit pool could be some

percentage (e.g. 10-20% as determined by management) of the increase in

pretax profits over the prior year. Peoples Income Tax has a Fidelity 401k plan

through its membership with the U.S. Chamber of Commerce that permits all

year-round and seasonal employees to participate, and the company makes 3%

contributions.

Some of Peoples seasonal tax associates who work part-time during the

off-season providing client service and teaching an income tax school work

enough hours to qualify for the companys group health insurance plan. Group

life and disability insurance and other benefits can be obtained throughprofessional associations. Even if the employee pays the full premium, group

rates tend to be lower than individual coverage. Group discounts for products

and services are often extended to employees through professional associations

and company membership in the local Chamber of Commerce. Peoples Income

Tax, as a small employer, was able to become a member of the Virginia Credit

Union, making all of Peoples employees eligible for the benefits of credit union

membership. Peoples also provides paid time off for its associates to volunteer

for company approved charitable activities such as providing free tax service for

welfare-to-work program participants and residents of homeless and battered

women shelters. Be creative. Little perks, like buying pizza for the staff of the

office on the busiest days of the work week, help to make your employees

appreciate their jobs. Be creative!

Recognition

Numerous studies and surveys have documented the fact that money is

not always the primary motivator for most employees. Recognize your people

frequently for their good work and they will repeat the performance frequently.

Praise must be sincere and should be distributed equitably, if warranted. When

possible, praise people publicly in meetings or employee newsletters. Be sure to

7


8/74

give people credit and rewards for good ideas they come up with that benefit the

company. Reinforce the right behaviors. Avoid saying Great but. Look for key

measures to recognize employees, such as production, client retention rate, etc.

Come up with contests to recognize your employees, such as the most referrals

for another service you offer, or the most new clients brought in. Give recognition

certificates, plaques and prizes and other than money, such as tickets for movie

rental or sports events, or gift certificates for merchandise or dinner. Giving

something tangible makes a more lasting impression. Praising your best

performers (the top 10-20%) will raise the bar for your weaker people. The goal is

to encourage behaviors that build your business and recognize your people for

practicing those behaviors as often as possible.

Communication

Lack of effective communication from management is usually the greatest

cause for employee dissatisfaction and premature departure. The best managers

listen to and communication frequently with all employees; and they make it easy

for employees to tell them about problems and concerns. Communication should

include training, group and individual meetings and, most important, daily

discussions between you and your employees. The larger your organization

becomes, the more difficult it is to keep in touch with all of your employees,

especially if you have multiple offices. Yet, as the manager, you must make the

time to regularly talk with everyone. E-mail is a good communication vehicle, but

the phone is more personal; and neither can replace face-to-face meetings.

Publishing employee newsletters is a good way for larger organizations to

enhance communication. An Intranet can also be an effective internal

communication vehicle. Keep communication simple, provide adequate

information and provide examples for clarity. Show your trust in your people and

make them feel included by sharing with them financial and other company inside

information. Management can make much better decisions by getting input from

front-line employees. If your people know that their voices are heard and they

8


9/74

feel like they are part of the decision making process, they will be much happier,

loyal and more likely to support new ideas and programs.

Empowerment

Engage your employees in decision-making; give them the authority to act

in the best interests of the company. Provide training in resolving client problems

and then trust them to make the right decisions. Give your people some time to

think and plan by building in some slack through adequate staffing and by

providing clerical support. Dont criticize employee mistakes; instead celebrate

honest mistakes. Recognize that making decisions naturally results in making

mistakes because no one is perfect. If you criticize honest mistakes, your people

will stop making decisions. Failure is also OK, because it is a normal part of the

road to success. Nothing is more gratifying than to see your people develop the

skills and confidence to act independently and to make sound decisions that are

in the best interests of the company and your clients.

Leadership

Much has been written about leadership and you should take the time

whenever the opportunity arises to read ideas on how to be a more effective

leader. Here are ten basic keys: (1) Integrity: always tell the truth and always

keep your promise, even if it hurts to do so. (2) Trust: You must first demonstrate

your trust in people by making yourself vulnerable before you can expect them to

place their trust in you. (3) Respect: If you really dont care about your people

they will sense your lack of concern and will not have respect for you. (4)Fairness: Treat all employees fairly and equally (including family members)

regardless of your personal feelings. (5) Vision: To be a true leader, you must

have an unfaltering vision, be able to communicate it to your people, and get

them to understand and share in your excitement for the vision. (6) Optimism:

You must always be positive and confident that the company will succeed; but

9


10/74

you should also be realistic. (7) Decisive: A leader must make decisions and stick

with them as long as they make sense. Consensus is not always better than an

individual decision, particularly in a crisis situation. Remember, the buck stops

with you! Trust your intuition. Intuition draws upon your experience, stored

knowledge and information you may not even realize you have in your head. (8)

Example: You must practice what you preach or you will have little credibility. (9)

Teamwork: Insist on mutual respect, courtesy and cooperation among your

people. This fundamental attitude was crucial in shaping our nation and is also

essential to build your company. (10) Authority: Remember that authority is not

vested in your position as the boss. Authority resides with the people who report

to you and they have the power grant it to you or not.

Having Fun

People like to work in an environment that is enjoyable; they can get

burned out if the work environment is totally serious and strictly business. Great

companies like Southwest Airlines have come up with creative ways for

employees to have fun. I think every manager should read the bestseller book,

NUTS!, By Southwest chairman, Herb Kelleher. If youre not naturally good at

getting people to have fun, designate a key employee to assume this role. A

friend, Hugh Goldthorpe, who is a top executive with Owens and Minor of

Richmond, Virginia, has adopted (and had printed on his business cards) his

official job title as: Head Cheerleader.

Motivating and keeping employees requires effective management

practices and strong leadership skills. A good operating system and adequate

training are essential. Your people need the proper tools and support to do the

job. A performance-based compensation plan should be designed very carefully

to ensure that your employees are encouraged to help build the business and are

10


11/74

rewarded for their contributions, and provide as many extra benefits as possible.

Screening new employment prospects to insure they fit in and buy into your

culture will prevent future problems. Employment agreements are a must and

should be reviewed by and explained to new hires. A valuable project is to

identify the 2-3 greatest frustrations of your employees and your clients and

devise ways to eliminate these irritations. Employees should be trusted, included

and empowered to make decisions and act autonomously. They also need to be

part of a harmonious team working for the mutual benefit of the clients, the

company and themselves. And they would enjoy being at a fun place to work!

Ultimately, your management and leadership skills and efforts will determine your

success in providing an atmosphere where your employees will be motivated to

be effective and will remain loyal to your company.

b. Concepts Related to Performance Appraisal System

TALENT MANAGEMENT

Talent management is a professional term that gained popularity in the

late 1990s. It refers to the process of developing and fostering new workers

through on boarding, developing and keeping current workers and attracting

highly skilled workers at other companies to come work for your company. Talent

management in this context does not refer to the management ofentertainers.

Companies that are engaged in talent management (human capital

management) are strategic and deliberate in how they source, attract, select,

train, develop, promote, and move employees through the organization. This

term also incorporates how companies drive performance at the individual level

(performance management).

The term talent management means different things to different people. To

some it is about the management of high-worth individuals or the talented whilst

11
http://en.wikipedia.org/wiki/Professionalhttp://en.wikipedia.org/wiki/Professionalhttp://en.wikipedia.org/wiki/Onboardinghttp://en.wikipedia.org/wiki/Entertainershttp://en.wikipedia.org/wiki/Professionalhttp://en.wikipedia.org/wiki/Onboardinghttp://en.wikipedia.org/wiki/Entertainers


12/74

to others it is about how talent is managed generally i.e. on the assumption that

all people have talent which should be identified and liberated.

This term is usually associated with competency-based human resource

management practices. Talent management decisions are often driven by a set

of organizational core competencies as well as position-specific competencies.

The competency set may include knowledge, skills, experience, and personal

traits (demonstrated through defined behaviors).

Older competency models might also contain attributes that rarely predict

success (e.g. education, tenure, and diversity factors that are illegal to consider

in many countries).

In the late 1990s, technology companies engaged in a war for talent.

Objectives:

To identify, nurture, groom and motivate talented MCS (management

carder staff).

Career and succession planning to build in-house pool of talent (grow your

own timber) for our future needs of HODs and GMs.

Determine talent strength (numbers) and quality (competencies), future

requirements and ideal organizational structure, identify gaps and take

actions.

Competitive advantage:

Embrace a talent mindset.

Craft a winning employee value proposition.

Rebuild your recruiting strategy.

Weave development into your organization.

Differentiate and affirm your people.

Limitations:

12


13/74

Retention rates in marketing are a problem. It was suggested to consider

the leadership issues, careful selection, increased motivation and

performance incentives.

EMPLOYEE INVOLVEMENT

Definition: Employee involvement is creating an environment in which people

have an impact on decisions and actions that affect their jobs.

Employee involvement is not the goal nor is it a tool, as practiced in many

organizations. Rather, it is a management and leadership philosophy about how

people are most enabled to contribute to continuous improvement and the

ongoing success of their work organization.

My bias, from working with people for 40+ years, is to involve people as

much as possible in all aspects of work decisions and planning. This involvement

increases ownership and commitment, retains your best employees, and fosters

an environment in which people choose to be motivated and contributing.

How to involve employees in decisionmaking and continuous improvement

activities is the strategic aspect of involvement and can include such methods as

suggestion systems, manufacturing cells, work teams, continuous improvement

meetings, Kaizen (continuous improvement) events, corrective action processes,

and periodic discussions with the supervisor.

Intrinsic to most employee involvement processes is training in team

effectiveness, communication, and problem solving; the development of reward

and recognition systems; and frequently, the sharing of gains made through

employee involvement efforts.

13


14/74

Employee Involvement Model

For people and organizations who desire a model to apply, the best I have

discovered was developed from work by Tannenbaum and Schmidt (1958) and

Sadler (1970).

Tell: the supervisor makes the decision and announces it to staff. The

supervisor provides complete direction.

Sell: the supervisor makes the decision and then attempts to gain

commitment from staff by selling the positive aspects of the decision.

Consult: the supervisor invites input into a decision while retaining

authority to make the final decision herself.

Join: the supervisor invites employees to make the decision with the

supervisor. The supervisor considers her voice equal in the decision

process.

To round out the model, I add the following:

Delegate:

The supervisor turns the decision over to another party. Employee

involvement consists of those practices which are initiated principally by

management and are designed to increase the employee information about, and

commitment to the organization fostering trust. Involvement assumes recognition

14


15/74

that employees have great untapped potential which can be used to the

organizations advantage by securing commitment of the employees to the

success of the organization.

The action plan:

Employee involvement focus in on correcting the balance towards an

employee contributing also his brain powers in terms of ideas and initiative for

improvement in the areas of his work/ his responsibilities and not only his brains.

The concept is application to workers, staffs and managers alike.

Objective:

Helping employees to contribute better on their jobs. Faster and higher quality of problem resolution.

Companies gaining better competitive edge.

Employees gaining greater job satisfaction, joy and pride in work.

Employees displaying greater identification with changes in policies,

practices, systems, structures and work methods.

INDUSTRIAL RELATIONSThe term industrial relation in practice has come to mean primarily the

relations between the management and the unions in an industrial enterprise. It

ought to include employee relations, irrespective of whether a union exists in a

particular unit or not.

We all know that unions came into being, since for ages an individual

employee has tented to be exploited by the employer. To be sure, most of us in

India are even today partners in this process of exploitation. The reference is to

the institution of domestic servants, whether we look at their wages, at their

working hours or their health care and so on.

15


16/74

The same is by and large for labors employed on construction projects or

on farms. It must therefore be accepted that the trade unions does serve a social

purpose through the practice of collective bargaining.

It never pays to delay or postpone a constructive confrontation to demand

performance be it in the volume or quality of the output.

Law and penalties

Legislation, acts, regulations, standards, codes of practice, prosecutions,

enforceable undertakings, fines, improvement and prohibition notices

Rights and obligations

Your rights as a consumer, worker, employer, manufacturer, WHSO;

manage your risks; meet your obligations

Workplace incidents and inspections

Notify of an incident, in an emergency, inspections, inspectors role,

workers compensation

Training, licenses and registrations

Accreditation, training providers, tickets, licenses, plant registrations,

seminars, educational tools, apprenticeships and traineeships

Workers compensation and rehabilitation

Workers compensation and rehabilitation legislation, rights and

obligations, other jurisdictions, claiming workers compensation and rehabilitation

Publications and forms

Reports, research, newsletters, submissions, conference papers, codes

and standards, forms, blitzes, audits, subject index A-Z

16
http://www.deir.qld.gov.au/law/index.htmhttp://www.deir.qld.gov.au/rights/index.htmhttp://www.deir.qld.gov.au/incidents/index.htmhttp://www.deir.qld.gov.au/training/index.htmhttp://www.deir.qld.gov.au/workerscompensation/index.htmhttp://www.deir.qld.gov.au/publications/index.htmhttp://www.deir.qld.gov.au/law/index.htmhttp://www.deir.qld.gov.au/rights/index.htmhttp://www.deir.qld.gov.au/incidents/index.htmhttp://www.deir.qld.gov.au/training/index.htmhttp://www.deir.qld.gov.au/workerscompensation/index.htmhttp://www.deir.qld.gov.au/publications/index.htm


17/74

MENTORING

More than ever before, organizations, large and small, are looking outsidetraditional mentoring paradigms to raise the bar on the practice of mentoring by

creating a mentoring culture.

A mentoring culture continuously focuses on building the mentoring capacity,

competence, and capability of the organization. A mentoring culture encourages

the practice of mentoring excellence by continuously:

creating readiness for mentoring within the organization, facilitating multiple mentoring opportunities, and

Building in support mechanisms to ensure individual and organizational

mentoring success.

In a mentoring culture, eight hallmarks build on and strengthen each other. All

are present, at least to some degree; however they manifest themselves

differently depending on the organizations previous success with mentoring.

The Eight Hallmarks of a Mentoring Culture

Accountability. Accountability enhances performance and produces long-

lasting results. It requires shared intention, responsibility and ownership, a

commitment to action and consistency of practice. Accountability also

involves very specific tasks:

--setting goals,

--clarifying expectations,

--defining roles and responsibilities,

--monitoring progress and measuring results,

--gathering feedback, and

--formulating action goals.

17


18/74

Alignment. Alignment focuses on the consistency of mentoring practices

within an institutions culture. It builds on the assumption that a cultural fit

already exists between mentoring and the organization and that mentoring

initiatives are also are tied to goals larger than just initiating a program. When

mentoring is aligned within the culture, it is part of its DNA. A shared

understanding and vocabulary of mentoring practice exists that fits naturally

with the organizations values, practices, mission, and goals.

Communication. Communication is fundamental to achieving mentoring

excellence and positive mentoring results. Its effects are far-reaching; it

increases trust, strengthens relationships, and helps align organizations. It

creates value, visibility and demand for mentoring. It is also the catalyst fordeveloping mentoring readiness, generating learning opportunities, and

providing mentoring support within an organization.

Value and Visibility. Sharing personal mentoring stories, role modeling,

reward, recognition, and celebration are high leverage activities that create

and sustain value and visibility. Leaders who talk about formative mentoring

experience, share best practices, and promote and support mentoring by their

own example add to the value proposition for mentoring.

COMMUNICATION

Communication is one of the toughest issues in organizations. Effective

communication requires four components interworking perfectly for shared

meaning, my favorite definition of communication.

The individual sending the message must present the message clearly and indetail, and radiate integrity and authenticity.

The person receiving the message must decide to listen, ask questions for

clarity, and trust the sender of the message.

18


19/74

The delivery method chosen must suit the circumstances and the needs of

both the sender and the receiver.

The content of the message has to resonate and connect, on some level, with

the already-held beliefs of the receiver.

With all of this going on in a communication, I think its a wonder that

organizations ever do it well.

Change management practitioners have provided a broad range of suggestions

about how to communicate well during any organizational changes.

LEADERSHIP AND MANAGEMENT

Leaders of organizations, especially people with high level titles and

ownership positions, establish and maintain the level of comfort that other

employees experience when they are asked to speak up. In most organizations,

the willingness of employees, even managers, to speak up in disagreement with

the higher level person is appallingly bad. Why is this so? Is it because people

lack personal and professional courage at work? Or, are they too beholden to

these executives for their job?

In any case, it is the leader who establishes the tone and the work

environment in which people chooses or chooses not to exercise personal

courage and freedom of expression. If the leader has traditionally proved to be

genuinely open to comments and criticism, people are willing to agree, disagree,

and express opinions.

The good leader, who wants to take advantage of the experience,

knowledge, and thoughtfulness of talented staff, remembers this. The good

leader is aware of their power to encourage or stifle opinions and debate. They

use this power to genuinely appreciate and encourage input, debate, and

differing opinions.

19


20/74

JOB DESCRIPTION

Effectively developed, job descriptions are communication tools that are

significant in your organizations success. Poorly written job descriptions, on the

other hand, add to workplace confusion, hurt communication, and make people

feel as if they dont know what is expected from them.

Job descriptions are written statements that describe the duties,

responsibilities, required qualifications, and reporting relationships of a particular

job. Job descriptions are based on objective information obtained through job

analysis, an understanding of the competencies and skills required to accomplish

needed tasks, and the needs of the organization to produce work.

Job descriptions clearly identify and spell out the responsibilities of a

specific job. Job descriptions also include information about working conditions,

tools; equipment used knowledge and skills needed, and relationships with other

positions.

Still uncertain about the value of job descriptions? Consider these tips

about employee job descriptions.

Positives about Job Descriptions

Job descriptions provide an opportunity to clearly communicate your

company direction and they tell the employee where he or she fits inside of the

big picture.

Whether youre a small business or a large, multi-site organization, well-

written job descriptions will help you align employee direction.

Alignment of the people you employ with your goals, vision, and mission

spells success for your organization. As a leader, you assure the interfunctioning

of all the different positions and roles needed to get the job done for the

customer.

20


21/74

Job descriptions set clear expectations for what you expect from people.

According to Ferdinand Fournies in Why Dont Employees Do What Theyre

Supposed to Do and What to Do about It, this is the first place to look if people

arent doing what you want them to do. He says you need to make certain that

they clearly understand your expectations. This understanding starts with the job

description.

Job descriptions help you cover all your legal bases.

Whether youre recruiting new employees or posting jobs for internal

applicants, job descriptions tell the candidate exactly what you want in your

selected person.

Clear job descriptions can help you select your preferred candidates and

address the issues and questions of those people who were not selected.

Well-written job descriptions help organization employees, who must work

with the person hired, understand the boundaries of the persons responsibilities.

People who have been involved in the hiring process are more likely to

support the success of the new employee or promoted coworker. Developing job

descriptions is an easy way to involve people in your organizations success

c. Review of literature

Fletcher C, Performance appraisal and management, November 4, 2001:

Performance appraisal has widened as a concept and as a set of practices

and in the form of performance management has become part of a more

strategic approach to integrating HR activities and business policies. As aresult of this, the research on the subject has moved beyond the limited

confines of measurement issues and accuracy of performance ratings and

has begun to focus more of social and motivational aspects of appraisal. This

article identifies and discusses a number of themes and trends that together

make up the developing research agenda for this field. It breaks these down

21
http://erclk.about.com/?zi=3/skfhttp://erclk.about.com/?zi=3/skfhttp://erclk.about.com/?zi=3/skfhttp://erclk.about.com/?zi=3/skf


22/74

in terms of the nature of appraisal and the context in which it operates. The

former is considered in terms of contemporary thinking on the content of

appraisal (contextual performance, goal orientation and self awareness) and

the process of appraisal (appraiserappraisee interaction, and multi-source

feedback). The discussion of the context of appraisal concentrates on cultural

differences and the impact of new technology.

Gregory H. Dobbins, Performance Appraisal as Effective

Management or Deadly Management Disease, 1990: Understanding

person and system sources of work variation is fundamental to performance

appraisal. Two divergent perspectives

on this issue, the traditional humanresource management viewand the statistical process control view (Deming,

1986), arecontrasted. Two studies are reported that investigate two specific

questions that arise from a broader view of the appraisal process. Results

indicate that managers and subordinates believe that typical poor

performance has different causes and that actual productivity levels far

outweigh person or system sources of performance variance in appraisal

judgments.

Gregory H. Dobbins, A Contingency Approach to Appraisal Satisfaction,

1990: The present study explored the moderating effects of organizational

variables on the appraisal characteristic-appraisal satisfaction relationship.

Analyses indicated that the appraisal characteristics of action plans,

frequency, and rater training were more positively related to appraisal

satisfaction when subordinates experienced role conflict, were not closely

monitored, and supervisors had a large span of control. The results provide

substantial support for conceptualizing appraisal satisfaction as a contingent

function of both appraisal characteristics and organizational variables.

Implications of the findings for the design of appraisal systems, appraisal

effectiveness, and future research are discussed.

22


23/74

Taylor Cox, Differential Performance Appraisal Criteria, 1986 :

Performance appraisal ratings of 125 first-level managers were analyzed

to investigate the degree to which the criteria usedto evaluate the overall

job performance of black managers differs from that used to evaluate

white managers. The performance appraisal form included items that

measured both the social behavior dimen sion and task/goal

accomplishment dimension of job performance. The appraisal ratings of

both groups on each dimension werecorrelated with measures of overall

job performance and promotability. Results indicated that social behavior

factors aremore highly correlated with the overall job performance of black

ratees than for white ratees. Implications of these results for both black

managers and organizations are discussed.

David A. Waldman, Predictors of Employee Preferences for Multirater

and Group-Based Performance Appraisal, 1997: This study

conceptualizes and measures user preferences for 360-degree appraisals

and group-level performance management (PM). Users are defined as

either recipients of PM processesor those whose job it is to administer the

process. Aspects of individual users, their work design, and current

appraisal context were used to predict preferences. Two studies were

conductedinvolving data collection in a large Canadian telecommunications

conglomerate and a department of the Canadian government, respectively.

Predictors explained significant amounts of variance in user preferences,

especially those pertaining to group-level PM. Practical implications are

suggested with regard to collectingand using user preferences. In addition,

suggestions for futureresearch are offered concerning the need to examine

23


24/74

a broad range of users in different organizational settings and to measure

actual system design features and their effectiveness.

Dennis W. Organ, A Restatement of the Satisfaction-Performance

Hypothesis, 1988: This article reviews recent evidence in support of

Organs (1977) argument that satisfaction more generally correlates with

organizational prosocial or citizenship-type behaviors than with traditional

productivity or in-role performance. An attempt is then made to interpret just

what it is in satisfaction measures that provides this correlation, leading to

the suggestion that fairness cognitions comprise the major factor.

Implications of this interpretation for theory, research, and management

practice are offered.

CHAPTER 2

METHODOLOGY

Need of the study:

The study concentrates on the HR affairs of the company. It involves the

study of performance standards of the employees of JK Paper Mills.

This study has been carried out in order to learn the Performance

Appraisal System of JK Paper Mills Pvt. Ltd; to know what strategies are being

implied and how far they are effective.

Objectives of the study:

To analyze and apply performance appraisal strategies to improve the

performance of the individual employees.

To know about the requirements of the employees.

24


25/74

To know the best performance appraisal strategy of the company.

Improve the performance of the employees and there by improving the

overall performance of the company, by providing suggestions if any.

To verify the standard of JK Paper Mills when compared to other paper

industries present in the market.

Scope of study:

It is a systematic procedure of collecting information in order to analyze

and verify a phenomenon.

The collection of information has been done through two major sources:

1. Primary Data.

2. Secondary Data.

Primary Data:

It is the information collected directly without any reference. In

this study, it is gathered through interviews with various employees, human

resource officers and other concerned people. Some of the information were

verified and supplemented through personal observation.

Secondary Data:

The Secondary data was collected from already published

sources such as pamphlets, annual reports, various journals and internal

records. The data collection includes:

Collection of required data from annual report of JK. Papers Ltd.

Reference from textbooks and journals relating to the paper industry in

India.

Annual reports of the company.

25


26/74

Presentation of the study:

Chapter I: This chapter deals with the history and the global prospective

of the Paper industry. It also tells us about the other important world

markets for paper and the future prospects in these markets.

It also tells us about the various concepts that are related to

performance appraisal strategies.

Chapter II: This chapter deals with the methodology of the study along

with the needs, objectives and limitations of the study.

This chapter also deals with how the survey was carried outby taking the primary data and the secondary data, that is by carrying out

a survey and also taking the findings of other surveys and documents into

account.

It talks about the need and objective of the study that is to find

out how the company is faring in regard to its performance. It also finds

out the limitations that I encountered during the period of study.

Chapter III: This chapter deals with the profile of the company. It gives a

brief history of the company. It goes on to talk about the progress and also

the innovations and technological progress that the company has excelled

in papers over the years. It tells us about the quality legacy of the

company, in the end it talks about the unique performance appraisal

strategy of the company and a few of the products that the company sells.

Chapter IV: This chapter deals with the analysis of the survey that I had

conducted during the period of my study. The survey tries to find out

various aspects like the satisfaction of the employees, performance of the

employees, awareness in the organization, performance appraisal

strategies used by the company and various other aspects.

26


27/74

Chapter V: This chapter includes the summary of the project. It also

includes my findings and suggestions and conclusions during my project

period.

Limitations of the study:

The study is focused on a very general level rather than a full scale

detailed report.

The study does not get information from an in depth prospective.

The study is not necessarily the solution to the problem that exists.

There were a lot of breaks and hindrances while the study took place.

The feedback given by recipients is not necessarily right.

27


28/74

CHAPTER 3a. Profile of Paper Industry

WHAT IS PAPER

Paper has played a vital role in the development of mankind, since times

immemorial, as a means of communication, as the most versatile material for

packing of goods, as a medium of preserving knowledge for progeny.

Paper is defined as A mat of cellulose fibers arranged in crises cross fashion

with hydrogen bond and other forces.

INTRODUCTION

Paper is derived from the word papyrus. Today, paper includes a wide

range of products with very different applications: communication, cultural,

educational , artistic, hygienic, sanitary as well as storage and transport of all

kinds of goods. Its almost impossible to imagine a life without paper.

There is a degree of consensus that the art of making paper was first discovered

in China and its origin in that country is traced back to 2 nd Century. In about

A.D.105 Ts Lun , an official attached to imperial court of China , created a

sheet of paper using Mulberry and other bast fibers along with fishnets, old

rags and hemp waste. (2nd Century B.C)

Chinese considered paper a key invention and kept this a closely guarded secret

for over Five Centuries until the technology slowly made it way westward. The

Arabs captured Chinese city containing a paper mill in the early 700s and

from this started their own paper making industry.(Early 700s )Invention of

printing in 1450s brought a vastly increased demand for paper .

28


29/74

LIST OF SATEWISE INDIAN PAPER INDUSTRY

Table 1:

STATENO.OF PAPER MILLS

ANDHRA PRADESH

ASSAM

BIHAR

GUJARAT

HARYANA

HIMACHAL PRADESHJAMMU & KASHMIR

KARNATAKA

KERALA

MADHYA PRADESH

MAHARASHTRA

NAGALAND

ORISSA

PONDICHERRY

PUNJAB

RAJASTHAN

TAMIL NADU

UTTAR PRADESH

WEST BENGAL

22

02

04

68

15

0601

14

05

21

71

01

09

01

37

07

31

16

TOTAL 594

SOURCE: Indian Press Services News Bulletin.

29


30/74

J K ORGANIZATION - HOW IT ALL BEGAN

During the later half of the 18th Century , Shri Binodia Ram Singhania of

village Singhana, which lies in the Shekavati region of Rajasthan, migrated to

Uttar Pradesh. The family settled down in Kanpur and slowly spread its roots

there. JK Organization was born under the leadership of Lala Kamlapatji and his

father Lala Juggilalji. Hence the name J.K.

A VISION TAKE SHAPE

The foundation of JK Organization was laid when the nation was passing

through turbulent times. It was the time when Indians were discriminated

against, in their own home land. Born on 7th November, 1884, Lala Kamlapatji,

the worthy son of Lala Juggilal Singhania, set up the first Cotton Mill in Northern

India in 1921, exclusively using Indian capital, Management and Labour. One

after another, other enterprises were started by him. JK Jute Mills Co. Ltd., JK

Iron & Steel Co. Ltd., JK Oil Mills, JK Cotton Manufacturers, JK Hosiery Factory,

JK Hosiery Factory (Calcutta), Kamlapat Motilal Sugar Mills, Kamla Ice Factory

were few of the initiatives of Lala Kamlapat Singhania.

LEGACY OF ENTREPRENEURSHIP CONTINUED

Keeping alive the spirit of entrepreneurship, the three sons of Shri.

Kamlapat Singhania Sir Padampat Singhania, Lala Kailashpat Singhania and

Lala Lakshmipat Singhania started up a number of industries across India and

further consolidated the existing businesses. They were the pioneers in settingup a mini steel plant in 1924, and first Indian Jute Mill in 1929 in Uttar Pradesh.

FROM HISTORY TO CONTEMPORARY

30


31/74

The Singhanias of today and their generation next have inherited the spirit

of meeting the entrepreneurial challenges of the times from their forefathers.

Under the visionary leadership of Shri Hari Shankar Singhania, President, JK

Organisation, supported by his brothers, the organization has shown exemplary

growth in diversified businesses.

GROUP COMPANIES

Chart 1:

With a century of multi-business, multi-product and multi-location businessoperations, the Group has Companies with a diverse portfolio including

Automotive Tyres & Tubes, Paper & Pulp, Cement, V-Belts, Oil Seals, Power

Transmission Systems, Hybrid Seeds, Woollen Textiles, Readymade Apparels,

Sugar, Food & Dairy Products, Cosmetics, etc. All products of the Group are not

only strong brand names but also reputed market leaders in their respective

segments.

With its operations spread in almost every state of India, the Group

employs over 30,000 people along with a nationwide sales and service network

of over 10,000 distributors and a large number of retailers and service centers.

Some of the leading Group Companies include:

31


32/74

JK Tyre JK Industries Ltd. Is a leading Tyre manufacturer in India.

JK Paper It is one of the Indias foremost paper manufacturers.

JK Lakshmi Cement It is a renowned and well-established name in theIndian Cement Industry.

Fenner India It is the leading manufacturer of V-belts, Oil Seals and Power

Transmission Systems.

JK Seeds JK Agri Genetics Ltd. Is one of the most reliable and well-known

names in Hybrid Seeds.

JK Dairy It is engaged in the production and sale of Milk Powders and

Ghee. JK Sugar It is one of the leading producers of high quality Sugar in India.

b. Profile of JK Paper Mills Pvt. Ltd.

J K PAPER LTD.

JK Paper Ltd., Indias largest producer of Branded papers is a leading

player in the Printing and Writing segment. It operates two plants in India, one in

the East JK Paper Mills (JKPM) in Rayagada, Orissa with a capacity of 127,000

32
http://www.jktyre.com/http://www.jklakshmi.com/http://www.jklakshmi.com/http://www.fennerindia.com/http://www.jkseeds.net/http://www.jkdairy.com/http://www.jktyre.com/http://www.jklakshmi.com/http://www.fennerindia.com/http://www.jkseeds.net/http://www.jkdairy.com/


33/74

tonnes per year and the other in the West Central Pulp Mills (CPM), located in

Songadh, Gujarat with a production capacity of 55,000 tonnes per year.

JK PAPER MILLS

Chart 2:

JK Paper Mills, a Unit of JK Paper Ltd. Is a premier integrated Pulp and

Paper Mill located at Jaykaypur, Dist. Rayagada, Orissa. JKPM was

commissioned in the year 1962 with an integrated pulp and paper plant with

15000 TPA installed capacity for manufacturing high quality writing and printingpapers. Over the years, the production capacity has been enhanced to a level of

127,000 TPA with the addition of 4 more paper machines manufacturing

diversified product range from 29 GSM to 300 GSM of different grades of paper.

In 2005, an offline coating machine has also been set up to manufacture

premium grades of coated papers.

Since its inception, JK Paper Mills has strived for excellence and consistently set

high standards in quality, productivity, conservation of energy and water,

industrial safety as well as pollution control and environment protection which are

indicated by achievements like:

33

A View of J K Paper Mills, Jaykaypur,Rayagada


34/74

Manufacture of surface sized Maplitho for the first time in the country with

indigenous raw material.

Capacity utilization of 120%

First Paper Mill in India to get ISO 9001 and ISO 14001.

Adjudged First Greenest Paper Mill in India in 1999.

Most modern and largest pulp mill in the country.

First Paper Mill not only in India but also in South-East Asia to have received

TPM Excellence Award from Japanese Institute of Plant Maintenance, Japan.

ORGANISATIONAL CHART

Chart 3:

34


35/74

PRODUCTION CAPACITY OF JK PAPER MILLS

Table 2:

MACHINE YEAR OF

INSTALLATION

INSTALLED

CAPACITY, TPA

Paper Machine I 1962 35,000 tpa

Paper Machine- II 1970 4,700 tpa

Paper Machine III 1972 26,000 tpa

Paper Machine IV 1989 8,000 tpaPaper Machine V 1994 16,000 tpa

TOTAL 90,000 tpa

J K PAPER MILLS PHILOSOPHY

Headquarters

Strategy Department

Finance Department

IT Department

Administration

Marketing Department

Public Relations Department

Legal Department

Personnel Department

Sales Department

Research Department

Logistics Department

Production

Security Department

35


36/74

JK Paper Mills believe that leadership is not merely a matter of size. With

leadership, comes the responsibility to drive growth in all its possible dimensions.

Leadership demands transformation. And to that extent, leadership shapes the

very quality of growth.

At JK Paper Mills, it is this ceaseless quest for holistic growth that has

shaped its operations in the present as well as influenced their investments in the

future in world-class technologies for enhancing customer experience, besides

enabling to fulfill social responsibilities.

At JK Paper Mills, technology up-gradation has meant more than just

better business sense. JK Paper Mills have moved beyond enhanced

productivity, wider product range and better value, to investing in and nurturing a

future ready organization that is driven by its two core growth engines

Customers and Environment.

J K Paper Mills firmly believe that much more than the technology, its how

well equipped we are to harness it that determines the road to transformation.And therefore, JKPMs investments are focused on continuous and consistent

up-gradation of processes, people and nature. Be it converting wastelands into

productive plantations to produce world-class pulp, or scouting for and mentoring

professionals who can drive the technology movement at JK Paper Mills.

VISION

To be a dynamic benchmark and leader in the Indian paper industry

MISSION

To achieve growth and leadership through the JK brand equity, customer

obsession, technological innovation and cost leadership, with a clear focus on

environment, while continuously enhancing shareholder value.

36


37/74

QUALITY POLICY

To provide customer delight both internal and external through our

products and services at lowest cost by continuous improvement in

processes, productivity, quality and management systems.

LEADERSHIP IN BRANDS

The secret of success of the J K Paper Mills is attributed to its policy for

sustained efforts for quality, new product development and continuous offering of

value added products to customers.

JK Paper Mills has been consistently consolidating its leadership position

in the Indian Paper Industry by continuously focusing on quality upgradation and

productivity increase. Beyond this, JK Paper Mills has been investing

continuously in Branding of its products, resulting in almost half of its revenues

coming from branded products. Not only has the Company retained its dominant

leadership in the branded paper market but has been introducing premium new

brands like JK Excel Bond, JK Copier Plus and JK Savanna year after year

in International quality consumer friendly packs. Both JK Copier and JK Easy

Copier are the countrys two largest paper brands.

37


38/74

PRODUCTS OFFERED BY JK PAPER MILLS

Table 3:

SURFACE SIZED MAPLITHO AND

SURFACED SIZED SUPER HIGH

BRIGHT MAPILTHO

Super grade of writing & printing paper with

high finish and brightness.

JK COPIER A paper most suited in all Xerox Machines.

SURFACE SIZED PULP BOARD &

SURFACE SIZED SUPER HIGH

BRIGHT PULP BOARD

Super grade of Board for printing & paching

with high finish and brightness.

CHANCELLOR BOND A superior variety Bond and writing and

printing.

JK BOND A normal grade of Bond Paper

WOOD FREE PRINTING A writing and printing paper with good

finish and brightness meant for export

market.

ARIMAL A lower grammar writing & printing paper

used for Bills Books as well as Airmail.

JK LASER PRINTING Suitable for Laser Printer

TITANIUM DIOXIDE LOADED

TISSUE PAPER

A better grade food packaging paper

OPAQUE PRINTING PAPER A common food packaging

WHITE OFFSET BOARD A high bright board supplied to cigarette

industries

VARNISHABLE MAPLITHO Catering labels and quality printing jobs with

varnishing

YELLOW PRINTING Used for yellow pages in Telephone Directory

as well as for other quality printing

WAX MATCH TISSUE Used for match sticks of better quality

38


39/74

OFFSET PRINTING (NATURAL

SHADE )

A paper used for coating base

Block centered art board For playing cards

INVORY BOARD A superior coated board used for Visiting

cards and invitation cards.

ENAMEL BOARD A superior coated board used for visiting

CHROMO PAPER A coated Board used for printing magazine

covers.

JK PAPER & SOCIETY

JK Paper has always been a front runner in taking initiatives for improving

the quality of life of the community, especially in the vicinity of its manufacturing

plants. Some of the initiatives taken in the last few years towards Community

Development and enhancing Community Relations include:

EDUCATION

2 full fledged schools at Jaykaypur, Rayagada (Orissa). 2800 children is the

strength of the students at present, which include children of Company

employees as well as from the community of nearby villages.

Adult literacy programme for local community.

Night schools for adults, which are being run by unemployed youths from the

villages.

FINANCIAL ASSISTANCE FOR

School construction & Furnishing

39


40/74

Providing educational aids & school uniform, text books, black boards etc.

Scholarship to students.

Schools for mentally challenged with residential care facilities.

HEALTH

JKPM has its own dispensary, which, in addition to the employees, also

attend to residents of the communities in the vicinity.

Health awareness programme, doctors and renowned experts are invited

to organize camps for awareness and also for cardiology, gynecology, dental,

eye and family planning programmes in collaboration with Government

hospitals, local clubs etc.

SPORTS AND OTHER RECREATIONAL ACTIVITIES

Games and sports are promoted among the village youth through local

tournaments.

Similarly, to promote sports, apart from organizing rural tournaments, sports kits

are distributed free of cost to over 25 villages in Orissa every year.

ENVIRONMENT

JK Paper Mills ensures that not only are its effluents well within the notified

parameters but it also takes proactive measures to continuously improve them

further.

40


41/74

The Company has signed a voluntary Charter on Corporate Responsibility for

Environment Protection (CREP) with Ministry of Environment & Forests and is

investing in the required facilities for environment protection.

Projects for conservation of energy and water are regularly taken up at both Mills.

Treated effluent water is being used for irrigation purpose.

INFRASTRUCTURE

Infrastructure development projects like building approach roads to nearby

villages, providing pipe water supply, construction of Water storage tank,

Town Gate. Police Chowki, etc. are regularly taken up around J K Paper

Mills.

ANCILLARY DEVELOPMENT

Realising that apart from development programmes, the communities also

need source of livelihood, the Company is promoting various ancillary

industries like alum, carton, core pipe, dry board, fly ash bricks and other

industries in the vicinity of the Mills, generating local employment

opportunities.

ASSISTANCE FOR NATURAL CALAMITIES

JK has always been in the forefront of meeting the challenges of natural

calamities. Be it the recent flood in Surat, drought or super-cyclone in Orissa or

the Gujarat Earthquake, or other tragedies like tsunami elsewhere. Apart from

cash contributions by the Organization, employees have also contributed

generously from their salaries. Additionally, immediate relief material in terms of

41


42/74

medicines, blankets, tents etc. have also been sent to the relief camps for

distribution.

JKPM opened a special nursery at Bhubaneswar to enable new plants to

be planted in places where super-cyclone had uprooted the existing trees.

AN EVERGREEN VISION

Responsible paper making demands a holistic environmental vision and J

K Paper Mills see trees as not just a critical raw material resource but also the

means to transform the lives of the rural community while also promoting a

greener India.

Today, J K Paper Mills high tech farm forestry movement is 53,000

hectares vast and has become a Peoples Movement involving thousands of

farmers across Orissa, Andhra Pradesh, Chhattisgarh, West Bengal, Gujarat and

Maharastra. Alongwith environmental benefits, distribution of high yield Clonal

plants developed at JKPMs in-house R & D Centre has helped farmers to

substantially increase the returns from their farms. Teams from the Company

travel across the rural hinterland encouraging, educating and advising farmers

about the merits of farm forestry and the latest farming techniques.

Advanced research in high-yield saplings has resulted in enhancing raw

material availability and quality, greening of surroundings and generating nearly

28 million man-days of employment among the rural masses. It has put JK Paperahead, both in terms of product quality and cost competitiveness.

What sets eco-commitment apart is J K Papers unique corporate vision

to protect the environmental through process innovations rather than end-of-

process treatments. Thus, J K Papers environmental friendly practices are

42


43/74

designed to go beyond our operational requirements and work towards ensuring

a better and greener tomorrow for the society as a whole.

THE SPRIT OF PEOPLE

JK Paper Mills today continues to be the Industrys Change Agent and

benchmark, thanks to the indomitable spirit of its people. Leadership, at all levels

in the organization has enabled J K Paper Mills to scale new heights in various

facets of the Business. Be it brands, quality of products and services, technology

and innovative strategies, people management practices, J K Paper Mills stands

out as an undisputed leader.

The common perception that with increasing mechanization and

automation, the value of the human touch reduces could not be farther form the

truth. In todays world, human decisions have a far greater impact over a larger

interlinked process, making it even more critical to deploy the right talent at the

right place to manage the operations. To address this challenge, J K Paper Mills

have invested substantially in continuous improvement of processes and human

skills. This effort involves identifying the grooming individuals, who can drive

the technology movement at J K Paper, through time-tested practices such asQuality Circles a dynamic shop floor level participative management system.

Jishu Hozen Circles within the TPM (Total Productive Maintenance) best

practices, Suggestion Scheme, Exemplary Work Award and several TPM related

Awards. On the process front, the Company has adopted an ERP (Enterprise

Resource Planning) system to ensure seamless flow of information and enhance

managerial efficiency. This also aids J K Paper Mills personnel in ultimately

enhancing Customer Satisfaction.

Clearly, J K Paper has gone well beyond just strategic investments in

technology, by implementing a series of dynamic HR practices so that Team JK

is more empowered than its peers in making the most of technology.

43


44/74

c. Performance Appraisal practices in JKPM

PERFORMANCE APPRAISAL

Introduction:

The appraisal system is a key human resources management system.

While the system enables the setting of objectives and facilitates the review of

performance against these objectives, it can also be effectively used to build

customer focus and enhance competitiveness. This is possible if the nature of

44


45/74

objectives and the manner in which they are achieved answers the following

questions-

When achieved, to what extent will customer value be enhanced?

When achieved, to what extent will it help the company respond to

change?

When achieved, to what extent will the companys competitiveness be

enhanced?

Setting objectives:

Objectives must flow from the business and functional plans and address

the key result areas of the job. Objectives must be-

Specific: The appraisee must understand them clearly.

Measurable: In term of quality, quantity, cost and time.

Attainable: Targets must have inbuilt stretch but yet be within the

capabilities of the appraisee.

Relevant: to the role and responsibilities with the job and link up with the

unit, business and functional plans.

Time bound: agree to the timeframe within which the objectives must be

achieved, which will also help prioritization.Remember , objectives must be S.M.A.R.T

Pre-requisites of an effective appraisal process:

Purpose of the job- The overall rate of the job from organisations point of

view; why the job exists and what contribution it is expected to make.

A statement of the key result areas that flow from the purpose of the job-

statements of the continuing end results and outcomes required of the job,

statements which identify what the job achieves and why.

Having listed the key result areas, it is necessary to clearly state the

objectives for the year. These objectives must flow from the business,

functional and unit plans.

45


46/74

For objectives to invoke commitment, they must be agreed between the

job holder and his boss and not set unilaterally.

For objectives to be meaningful, they must be specific, measurable,

attainable, relevant and time bound.

The appraisal process must focus on performance against agreed

objectives, enable the individual to give feedback to the organization his

own feelings, aspirations, difficulties, etc and serve as a forum for dialogue

between the individual and the organization.

The process must focus on performance, not personality; on facts, not

perception and demonstrated behaviour, not hunches.

Performance appraisal process:

Chart 4:

-Ratings

-Review

46

Planning for

performance

Goals

Standards

KPAS/KRAS

Periodic

review/feedback

Observations

Feedback

Support


47/74

-Action

Advantages/Benefits:

To Appraisers:

More productive- Allows the appraiser to concentrate efforts on the more

productive managerial tasks and activities.

Annual performance

evaluation/review

Ratings

Review discussions

Action plans

-

47


48/74

Less stressful- Creates a more harmonious, less adversarial, working

relationship between appraiser and appraisee.

More rewarding- Improved productivity of the work group.

To Appraisees:

Feedback

Opportunity

Autonomy

PERFORMANCE COUNSELING

Definition:

Performance counseling can be defined as the help provided by a

manager to his subordinate in analyzing his performance and other job behaviors

in order to increase his job effectiveness. There are three processes involved in

counseling- communication, influencing and helping.

Objectives:

Helping the counselor to realize his potential as an employee.

Helping him to understand himself- his strengths and his weaknesses.

Helping him to have better understanding of the environment.

Encouraging him to set meaningful goals for further improvements.

Encouraging him to generate alternatives for dealing with various

problems.

48


49/74

Providing him an empathic atmosphere for sharing and discussing his

tensions, conflicts, concerns and problems.

Conditions for effective counseling:

General climate of openness and mutuality.

General helpful and empathic attitude of the counselor.

Uninhibited participation of the subordinate.

Joint goal-setting and performance review.

Focus on work behavior.

Solving work related problems.

Counseling process:

A formal counseling process is of three phases-

PHASE I: Rapport building.

a) Attending.

b) Listening.

c) Acceptance.

PHASE II: Exploring.

a) Problem identification.

b) Diagnosis.

PHASE III: Action planning.

a) Searching.

b) Decision making.

c) Supporting.

Establishing for dialoguing:

The appraisal interview is also an ideal opportunity for the boss and the

job holder to dialog on his career. Here are some sample questions that can

constitute the basis for a dialog on an individuals career-

49


50/74

Current assignment:

What do find challenging and exciting about your current assignment?

Do you feel you are being fully utilized in your current assignment?

Goals and aspirations:

What objective have you set for your personal and professional growth?

How do you intend to pursue these?

How can an organization assist in the process?

Career plan:

What responsibilities do you see yourself capable of assuming?

What do you see yourself doing three years from now?

Performance ratings:

Appraisal system requires an overall performance rating-

Outstanding performance.

Good performance.

Satisfactory performance.

Barely adequate performance.

Poor performance.

An ongoing process:

It is necessary to engage in a formal appraisal process once a year.

However we must guard against the process degenerating into a year-end ritual-

something to be got over with for the sake of the firm. Once objectives are set at

50


51/74

the beginning of the year, any time is a good enough time for the job holder and

his boss to engage in a review of how things are going.

Periodic review and feedback on performance as well as the process of

dialoguing whereby the individual feeds back his overall feelings, difficulties,

challenges, etc. spurs on performance and enables the achievement of results

against agreed objectives as well as reinforces desired behaviors which in turn

enhances the competencies of the business.

CHAPTER 4

Analysis of the study on Performance Appraisal System in JKPM

Duration for which the respondent has been working in JKPM.

This question was asked to the employees working in JKPM to find out the

duration for which they have been working in the organization, based upon which

we can know if the employees are satisfied with their job in the company or not.

Table 4:Duration of work period in JKPM.

Particulars No. of respondents Percentage of

51


52/74

respondents

0-1 yrs 2 3%

1-5 yrs 33 55%

5-10 yrs 15 25%

10+ yrs 10 17%Total 60 100%

Chart 5: Duration of work in JKPM.

0

5

10

15

20

25

30

35

0-1 yrs 1-5 yrs 5-10 yrs 10+ yrs

no. of respondents

3 percent of the respondents are dealing with JK Paper Mills for less than

a year.55 percent of the respondents are dealing in JK Paper Mills from 1-5 yrs.

25 percent of the respondents are dealing in JK Paper Mills from 5-10 yrs. 17

percent of the respondents are dealing in JK Paper Mills for over 10 yrs.

52


53/74

Extent of satisfaction in setting goals/objectives in the beginning of the

year.

This question was asked to the employees of JKPM to find out the extent of

satisfaction of the employees in setting goals/objectives in the beginning of the

year to know if they are being given opportunities to express their views.

Table 5: Extent of satisfaction


respondents

Very satisfied 38 63%

Satisfied 18 30%

Dissatisfied 4 7%

Total 60 100%

53


54/74

Chart 6: Extent of satisfaction.

0

5

10

15

2025

30

35

40

very satisfied satisfied dissatisfied

no. of respondents

63 percent of the respondents are very satisfied in setting their goals and

objectives in the beginning of the year. 30 percent of the respondents are

satisfied in setting their goals and objectives in the beginning of the year. 7

percent of the respondents are dissatisfied in setting their goals and objectives in

the beginning of the year.

Ratings of the PA strategies and programmes in the company.

This question was asked to the employees of JKPM to rate the standard of

various PA strategies and programmes that take place in the organization.

Table 6: Ratings of PA strategies.


respondents

Good 42 70%

Average 18 30%

Bad 0 0%

Total 60 100%

54


55/74

Chart 7: Ratings of PA strategies.

0

5

10

15

2025

30

35

40

45

Good Average Bad

no. of respondents

70 percent of the respondents rate the Performance Appraisal strategies as

good. 30 percent of the respondents rate the Performance Appraisal strategies

as average.None of the respondents rates the Performance Appraisal strategies

as bad.

Performance Appraisal strategies are fair and objective.

This question was asked to the employees to know if the performance appraisal

strategies are fair and objective to the employees.

Table 7: PA strategies are fair or not.


respondents

Yes 34 84%

No 26 16%

Cant say 0 0%

Total 60 100%

55


56/74

Chart 8: PA strategies are fair or not.

0

5

10

15

20

25

30

35

Yes No Can't say

no. of respondents

84 percent of the respondents say that the Performance Appraisal strategies are

fair and objective. 16 percent of the respondents say that the Performance

Appraisal strategies are not fair and objective.None of the respondents are there

who cant say anything.

It is necessary to appraise an employee.

This question was asked to the employees to know how important it is to

appraise an employee.

Table 8: Necessity to appraise an employee.


respondents

Yes 60 100%

No 0 0%

Total 60 100%

56


57/74

Chart 9: Necessity to appraise an employee.

0

10

20

30

40

50

60

Yes No

no. of

respondents

100 percent of the respondents say that it is necessary to appraise an employee.

None of the respondents says that it is necessary to appraise an employee.

There is clarity in what is expected from the employee.

This question was asked to the employees to know if they are made clear on

what is expected of them so that they can work accordingly.

Table 9: Clarity in what is expected from the employee.


respondents

Yes 60 100%No 0 0%

Total 60 100%

57


58/74

Chart 10: Clarity in what is expected from the employee.

0

10

20

30

40

50

60

Yes No

no. of

respondents

100 percent of the respondents say that they are clear with what is expected of

them.None of the respondents say that they are not clear with what is expected

of them.

Feedback is given to the Management Cadre Staff for the task

accomplished by them.

This question was asked to the employees to know if they are provided with

proper feedback for the task they accomplish, based upon which they can work

better in future.

Table 10: Feedback is given to MCS.


respondentsYes 37 62%

No 23 38%

Total 60 100%

58


59/74

Chart 11: Feedback is given to MCS.

0

5

10

15

20

25

30

35

40

Yes No

no. of

respondents

62 percent of the respondents say that the feedback is given to the MCS for the

task accomplished by them.38 percent of the respondents say that the feedback

is not given to the MCS for the task accomplished by them.

Suggestions and innovations are rewarded.

This question was asked to the employees to know if they are motivated by

accepting their suggestions and innovations in the form of rewards.

Table 11: Suggestions and innovations are rewarded.


respondents

Yes 21 35%

No 39 65%Total 60 100%

59


60/74

Chart 12: Suggestions and innovations are rewarded.

0

5

10

15

20

25

30

35

40

Yes No

no. of

respondents

35 percent of the respondents say that their suggestions and innovations

50288440 performance appraisal project report

Documents