52042690 performance appraisal project

Upload: vrijendra-pal

Post on 14-Apr-2018

231 views

Category:

Documents


3 download

TRANSCRIPT

  • 7/30/2019 52042690 Performance Appraisal Project

    1/71

    Page 1 of71

    PERFORMANCE

    APPRAISALBy Amruta Shetty

  • 7/30/2019 52042690 Performance Appraisal Project

    2/71

    CONTENTS:

    (1) INTRODUCTION

    1.1 FUNCTIONS OF HRM

    (2) PERFORMANCE APPRAISAL

    2.1 Need for the study

    2.2Objectives of the study

    2.3 Limitations of study

    2.4 Objectives of performance appraisal

    2.5 Importance of Performance appraisal

    2.6 Process of performance appraisal

    2.7 Methods of performance appraisal

    2.8 Advantages of performance appraisal

    2.9 Disadvantages of performance appraisal

    (3)Industry profile

    (4) Company profile

    (5) Data analysis Interpretations

    (6) Findings and suggestions

    (7) Bibliography

    Page 2 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    3/71

    HUMAN RESOURCE MANAGEMENT

    Human resource management (HRM) is the strategic and coherent approach to the

    management of an organizations most valued assets - the people working there who

    individually and collectively contributes to the achievement of the objectives of the business.

    The terms "human resource management" and "human resources" (HR) have largely replaced

    the term "personnel management" as a description of the processes involved in managing

    people in organizations In simple words, HRM means employing people, developing their

    capacities, utilizing, maintaining and compensating their services in tune with the job and

    organizational requirement

    Human resource is a term used to describe the individuals who comprise the workforce of

    an organization, although it is also applied in labor economics to, for example,

    business sectors or even whole nations. Human resources is also the name of the function

    within an organization charged with the overall responsibility for implementing strategies and

    policies relating to the management of individuals (i.e. the human resources). This function

    title is often abbreviated to the initials

    Human resources are a relatively modern management term, coined in the 1960s The origins

    of the function arose in organizations that introduced 'welfare management' practices and also

    in those that adopted the principles of 'scientific management'. From these terms emerged a

    largely administrative management activity, co-coordinating a range of worker related

    processes and becoming known, in time as the 'personnel function'. Human resources

    progressively became the more usual name for this function, in the first instance in the United

    States as well as multinational corporations, reflecting the adoption of a more quantitative as

    well as strategic approach to workforce management, demanded by corporate management

    and the greater competitiveness for limited and highly skilled workers.

    Page 3 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    4/71

    History

    The early development of the function can be traced back to at least two distinct movements.

    One element has its origins in the late 19th century, where organizations such as Cadburys at

    its Bourneville factory recognized the importance of looking after the welfare of the

    workforce, and their families. The employment of women in factories in the U n it ed K ingdom

    led to the introduction of "Welfare Officers". Meanwhile, in the U n it ed S ta tes the concept of

    human resources developed as a reaction to the efficiency focus of Taylorism or "scientific

    management" in the early 1900s, which developed in response to the demand for ever more

    efficient working practices within highly mechanized factories, such as in the Ford M o tor

    Co m pan y . By 1920, psychologists and employment experts in the United States started the

    hu m an re la ti ons movement, which viewed workers in terms of theirp s ycho logy and fit with

    companies, rather than as interchangeable parts.

    During the middle of the last century, larger corporations, typically those in the United States

    that emerged after the Second Wor ld Wa r , recruited personnel from the US Military and were

    able to apply new selection, training, leadership, and management development techniques,

    originally developed by the Armed Services, working with, for example, university-based

    occupational psychologists. Similarly, some leading European multinationals, such as Shell

    and Phillips developed new approaches to personnel development and drew on similar

    approaches already used in Civil Service training. Gradually, this spread more sophisticated

    policies and processes that required more central management via a personnel department

    composed of specialists and generalist teams.

    The role of what became known as Human Resources grew throughout the middle of the

    20th century. Tensions remained between academics who emphasized either 'soft' or

    'hard' HR. Those professing so-called 'soft HR' stressed areas like leadership, cohesion, and

    loyalty that play important roles in organizational success. Those promoting 'hard HR'

    championed more quantitatively rigorous management techniques in the 1960s.

    In the later part of the last century, both the title and traditional role of the personnel function

    Page 4 of71

    http://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Ford_Motor_Companyhttp://en.wikipedia.org/wiki/Ford_Motor_Companyhttp://en.wikipedia.org/wiki/Human_relationshttp://en.wikipedia.org/wiki/Human_relationshttp://en.wikipedia.org/wiki/Human_relationshttp://en.wikipedia.org/wiki/Psychologyhttp://en.wikipedia.org/wiki/Second_World_Warhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Ford_Motor_Companyhttp://en.wikipedia.org/wiki/Ford_Motor_Companyhttp://en.wikipedia.org/wiki/Human_relationshttp://en.wikipedia.org/wiki/Psychologyhttp://en.wikipedia.org/wiki/Second_World_Warhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdom
  • 7/30/2019 52042690 Performance Appraisal Project

    5/71

    was progressively superseded by the emergence, at least in larger organizations, of strategic

    human resources management and sophisticated human resources departments. Initially, this

    may have involved little more than renaming the function, but where transformation occurred,

    it became distinguished by the human resources having a more significant influence on the

    organizations strategic direction and gaining board- level representation.

    Page 5 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    6/71

    FUNCTIONS OF HRM

    There are seven main functions of HR

    Function 1: Manpower planning

    The penalties for not being correctly staffed are costly.

    Understaffing loses the business economies of scale and specialization, orders, customers

    and profits.

    Overstaffing is wasteful and expensive, if sustained, and it is costly to eliminate because of

    modern legislation in respect of redundancy payments, consultation, minimum periods of

    notice, etc. very importantly, overstaffing reduces the competitive efficiency of the business.

    Future staffing needs will derive from:

    Sales and production forecasts

    The effects of technological change on task needs

    Variations in the efficiency, productivity, flexibility of labor as a result of training, work

    study, organizational change, new motivations, etc.

    Changes in employment practices (e.g. use of subcontractors or agency staffs, hiving-off

    tasks, buying in, substitution, etc.)

    Variations, which respond to new legislation, e.g. payroll taxes or their abolition, new

    health and safety requirements

    Changes in Government policies (investment incentives, regional or trade grants, etc.

    Function 2: Recruitment and selection of employees

    Recruitment of staff should be preceded by:

    An analysis of the job to be done (i.e. an analytical study of the tasks to be performed to

    determine their essential factors) written into a job description so that the selectors know what

    physical and mental characteristics applicants must possess, what qualities and attitudes are

    desirable and what characteristics are a decided disadvantage;

    In the case of replacement staff a critical questioning of the need to recruit at all (replacement

    should rarely be an automatic process).

    Effectively, selection is 'buying' an employee (the price being the wage or salary multiplied by

    Page 6 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    7/71

    probable years of service) hence bad buys can be very expensive. For that reason some firms

    (and some firms for particular jobs) use external expert consultants for recruitment and

    selection.

    Equally some small organizations exist to 'head hunt', i.e. to attract staff with high reputations

    from existing employers to the recruiting employer. However, the

    'cost' of poor selection is such that, even for the mundane day-to-day jobs, those who recruit

    and select should be well trained to judge the suitability of applicants.

    Function 3: Employee motivation

    To retain good staff and to encourage them to give of their best while at work requires attention

    to the financial and psychological and even physiological rewards offered by the organization as

    a continuous exercise.

    Basic financial rewards and conditions of service (e.g. working hours per week) are determined

    externally (by national bargaining or government minimum wage legislation) in many

    occupations but as much as 50 per cent of the gross pay of manual workers is often the result of

    local negotiations and details (e.g. which particular hours shall be worked) of conditions of

    service are often more important than the basics. Hence there is scope for financial and other

    motivations to be used at local levels.

    As staffing needs will vary with the productivity of the workforce (and the industrial peace

    achieved) so good personnel policies are desirable. The latter can depend upon other factors

    (like environment, welfare, employee benefits, etc.) but unless the wage packet is accepted

    as 'fair and just' there will be no motivation.

    Function 4: Employee evaluation:

    An organization needs constantly to take stock of its workforce and to assess its

    performance in existing jobs for three reasons:

    To improve organizational performance via improving the performance of individual

    Page 7 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    8/71

    contributors (should be an automatic process in the case of good managers, but (about

    annually) two key questions should be posed:

    What has been done to improve the performance of a person last year?

    And what can be done to improve his or her performance in the year to come?.

    To identify potential, i.e. to recognize existing talent and to use that to fill vacancies higher

    in the organization or to transfer individuals into jobs where better use can be made of their

    abilities or developing skills.

    To provide an equitable method of linking payment to performance where there are no

    numerical criteria (often this salary performance review takes place about three months later

    and is kept quite separate from 1. and 2. but is based on the same assessment).

    Function 5: Industrial relations

    Good industrial relations, while a recognizable and legitimate objective for an organization,

    are difficult to define since a good system of industrial relations involves complex

    relationships between:

    (a) Workers (and their informal and formal groups, i. e. trade union, organizations and their

    representatives);

    (b) Employers (and their managers and formal organizations like trade and professional

    associations);

    (c) The government and legislation and government agencies l and 'independent' agencies like

    the Advisory Conciliation and Arbitration Service.

    Function 6: Provision of employee services

    Attention to the mental and physical well-being of employees is normal in many organizations

    as a means of keeping good staff and attracting others. The forms this welfare can take are

    many and varied, from loans to the needy to counseling in respect of personal problems.

    Page 8 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    9/71

    Among the activities regarded as normal are:

    Schemes for occupational sick pay, extended sick leave and access to the firm's

    medical adviser;

    Schemes for bereavement or other special leave;

    The rehabilitation of injured/unfit/ disabled employees and temporary or

    permanent move to lighter work;

    The maintenance of disablement statistics and registers (there are complicated legal

    requirements in respect of quotas of disabled workers and a need for

    'certificates' where quota are not fulfilled and recruitment must take place); Provision

    of financial and other support for sports, social, hobbies, activities of many kinds

    which are work related;

    Provision of canteens and other catering facilities;

    Possibly assistance with financial and other aid to employees in difficulty

    (supervision, maybe, of an employee managed benevolent fund or scheme);

    Provision of information handbooks,

    Running of pre-retirement courses and similar fringe activities;

    Care for the welfare aspects of health and safety legislation and provision of first- aid

    training.

    Page 9 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    10/71

    The location of the health and safety function within the organization varies. Commonly a

    split of responsibilities exists under which 'production' or 'engineering' management cares for

    the provision of safe systems of work and safe places and machines etc., but HRM is

    responsible for administration, training and education in awareness and understanding of the

    law, and for the alerting of all levels to new requirements.

    Function 7: Employee education, training and development

    In general, education is 'mind preparation' and is carried out remote from the actual work area,

    training is the systematic development of the attitude, knowledge, skill pattern required by a

    person to perform a given task or job adequately and development is 'the growth of the

    individual in terms of ability, understanding and awareness'.

    Within an organization all three are necessary in order to:

    Develop workers to undertake higher-grade tasks;

    Provide the conventional training of new and young workers (e.g. as apprentices,

    clerks, etc.);

    Raise efficiency and standards of performance;

    Meet legislative requirements (e.g. health and safety);

    Inform people (induction training, pre-retirement courses, etc.);

    Page 10 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    11/71

    Performance Appraisal

    A performance appraisal, employee appraisal, performance review, or (career)

    development discussion is a method by which the job performance of an employee is

    evaluated (generally in terms of quality, quantity, cost, and time) typically by the

    corresponding manager or supervisor performance appraisal is a part of guiding and

    managing career development. It is the process of obtaining, analyzing, and recording

    information about the relative worth of an employee to the organization. Performance

    appraisal is an analysis of an employee's recent successes and failures, personal strengths

    and weaknesses, and suitability for promotion or further training. It is also the

    judgment of an employee's performance in a job based on considerations other thanproductivity alone.

    Objectives of a performance appraisal

    Give employees feedback on performance

    Identify employee training needs

    Document criteria used to allocate organizational rewards

    Form a basis for personnel decisions: salary increases, promotions, disciplinary

    actions, bonuses, etc.

    Provide the opportunity for organizational diagnosis and development

    Facilitate communication between employee and administration

    Validate selection techniques and human resource policies to meet federal Equal

    Employment Opportunity requirements.

    To improve performance through counseling, coaching and development.

    Page 11 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    12/71

    Importance of Performance Appraisal

    Performance appraisals provide employees and managers with opportunities to discuss areas

    in which employees excel and those in which employees need improvement. Performance

    appraisals should be conducted on a regular basis, and they need not be directly attached to

    promotion opportunities.

    Personal Attention

    During a performance appraisal review, a supervisor and an employee discuss the employee's

    strengths and weaknesses. This gives the employee individual face time with the supervisor

    and a chance to address personal concerns.

    Feedback

    Employees need to know when their job duties are being fulfilled and when there are issues

    with their work performance. Managers should schedule this communication on a regular

    basis.

    Career Path

    Performance appraisals allow employees and supervisors to discuss goals that must be met

    to advance within the company. This can include identifying skills that must be acquired,

    areas in which one must improve, and educational courses that must be completed.

    Employee Accountability

    When employees know there will be regularly scheduled evaluations, they realize that they

    are accountable for their job performance.

    Page 12 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    13/71

    Communicate Divisional and Company Goals

    Besides communicating employees' individual goals, employee appraisals provide the

    opportunity for managers to explain organizational goals and the ways in which employees

    can participate in the achievement of those goals.

    Process of Performance Appraisal

    ESTABLISHING PERFORMANCE STANDARDS

    The first step in the process of performance appraisal is the setting up of the standards

    which will be used to as the base to compare the actual performance of the employees. This

    step requires setting the criteria to judge the performance of the employees as successful or

    unsuccessful and the degrees of their contribution to the organizational goals and objectives.

    The standards set should be clear, easily understandable and in measurable terms. In case the

    performance of the employee cannot be measured, great care should be taken to describe the

    standards.

    COMMUNICATING THE STANDARDS

    Once set, it is the responsibility of the management to communicate the standards to all the

    employees of the organization.

    The employees should be informed and the standards should be clearly explained to the. This

    will help them to understand their roles and to know what exactly is expected from them. The

    standards should also be communicated to the appraisers or the evaluators and if required, the

    standards can also be modified at this stage itself according to the relevant feedback from the

    employees or the evaluators.

    Page 13 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    14/71

    MEASURING THE ACTUAL PERFORMANCE

    The most difficult part of the Perfor m ance appra is al process is measuring the actual

    performance of the employees that is the work done by the employees during the specified

    period of time. It is a continuous process which involves monitoring the performance

    throughout the year. This stage requires the careful selection of the appropriate techniques of

    measurement, taking care that personal bias does not affect the outcome of the process and

    providing assistance rather than interfering in an employees work.

    COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

    The actual performance is compared with the desired or the standard performance. The

    comparison tells the deviations in the performance of the employees from the standards

    Page 14 of71

    http://appraisals.naukrihub.com/http://appraisals.naukrihub.com/http://appraisals.naukrihub.com/http://appraisals.naukrihub.com/
  • 7/30/2019 52042690 Performance Appraisal Project

    15/71

    set. The result can show the actual performance being more than the desired performance or,

    the actual performance being less than the desired performance depicting a negative deviation

    in the organizational performance. It includes recalling, evaluating and analysis of data related

    to the employees performance.

    DISCUSSING RESULTS

    The result of the appraisal is communicated and discussed with the employees on one- to-

    one basis. The focus of this discussion is on communication and listening. The results, the

    problems and the possible solutions are discussed with the aim of problem solving

    and reaching consensus. The feedback should be given with a positive attitude as this can have

    an effect on the employees future performance. The purpose of the meeting should be to solve

    the problems faced and motivate the employees to perform better.

    DECISION MAKING

    The last step of the process is to take decisions which can be taken either to improve the

    performance of the employees, take the required corrective actions, or the related HR

    decisions

    Traditional Methods of Performance Appraisal

    ESSAY APPRAISAL METHOD

    This traditional form of appraisal, also known as "Free Form method" involves a

    description of the performance of an employee by his superior. The description is an

    evaluation of the performance of any individual based on the facts and often includes

    examples and evidences to support the information. A major drawback of the method is the

    inseparability of the bias of the evaluator.

    2. STRAIGHT RANKING METHOD

    This is one of the oldest and simplest techniques of performance appraisal. In this method,

    the appraiser ranks the employees from the best to the poorest on the basis of their overall

    performance. It is quite useful for a comparative evaluation

    Page 15 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    16/71

    3.PAIRED COMPARISON

    A better technique of comparison than the straight ranking method, this method compares each

    employee with all others in the group, one at a time. After all the comparisons on

    the basis of the overall comparisons, the employees are given the final rankings.

    4. CRITICAL INCIDENTS METHODS

    In this method ofPerfor m ance appra is a l, the evaluator rates the employee on the basis of

    critical events and how the employee behaved during those incidents. It includes both negative

    and positive points. The drawback of this method is that the supervisor has to note down the

    critical incidents and the employee behaviour as and when they occur.

    5. FIELD REVIEW

    In this method, a senior member of the HR department or a training officer discusses and

    interviews the supervisors to evaluate and rate their respective subordinates. A major

    drawback of this method is that it is a very time consuming method. But this method helps to

    reduce the superiors personal bias.

    6. CHECKLIST METHOD

    The rater is given a checklist of the descriptions of the behaviour of the employees on job.The checklist contains a list of statements on the basis of which the rater describes the on

    the job performance of the employees.

    7. GRAPHIC RATING SCALE

    In this method, an employees quality and quantity of work is assessed in a graphic scale

    indicating different degrees of a particular trait. The factors taken into consideration include

    both the personal characteristics and characteristics related to the on the job performance of the

    employees. For example a trait like Job Knowledge may be judged on the range of average,

    above average, outstanding or unsatisfactory

    FORCED DISTRIBUTION

    To eliminate the element of bias from the raters ratings, the evaluator is asked to

    Page 16 of71

    http://appraisals.naukrihub.com/http://appraisals.naukrihub.com/http://appraisals.naukrihub.com/http://appraisals.naukrihub.com/
  • 7/30/2019 52042690 Performance Appraisal Project

    17/71

    distribute the employees in some fixed categories of ratings like on a normal distribution

    curve. The rater chooses the appropriate fit for the categories on his own discretion.

    Modern Methods of Performance Appraisal

    ASSESSMENT CENTRES -

    An assessment Centre typically involves the use of methods like social/informal events, tests

    and exercises, assignments being given to a group of employees to assess their competencies

    to take higher responsibilities in the future. Generally, employees are given an assignment

    similar to the job they would be expected to perform if promoted. The trained evaluators

    observe and evaluate employees as they perform the assigned jobs and are evaluated on jobrelated characteristics.

    The major competencies that are judged in assessment centers are interpersonal skills,

    intellectual capability, planning and organizing capabilities, motivation, career orientation

    etc. assessment centres are also an effective way to determine the training and

    development needs of the targeted employees.

    BEHAVIORALLY ANCHORED RATING SCALES

    Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines

    the graphic rating scale and critical incidents method. It consists of predetermined critical

    areas of job performance or sets of behavioral statements describing important job

    performance qualities as good or bad (for eg. the qualities like inter personal relationships,

    adaptability and reliability, job knowledge etc). These statements are developed from critical

    incidents.

    In this method, an employees actual job behavior is judged against the desired behavior by

    recording and comparing the behavior with BARS. Developing and practicing BARS requires

    expert knowledge.

    Page 17 of71

    http://appraisals.naukrihub.com/assessment-centers.htmlhttp://appraisals.naukrihub.com/assessment-centers.html
  • 7/30/2019 52042690 Performance Appraisal Project

    18/71

    HUMAN RESOURCE ACCOUNTING METHOD

    Human resources are valuable assets for every organization. Human resource accounting

    method tries to find the relative worth of these assets in the terms of money. In this method

    the Performance appraisal of the employees is judged in terms of cost and contribution of the

    employees. The cost of employees include all the expenses incurred on them like their

    compensation, recruitment and selection costs, induction and training costs etc whereas their

    contribution includes the total value added (in monetary terms). The difference between the

    cost and the contribution will be the performance of the employees. Ideally, the contribution

    of the employees should be greater than the cost incurred on them.

    MANAGEMENT BY OBJECTIVES

    The concept ofManagement by Objectives (MBO) was first given by Peter Druckerin

    1954. It can be defined as a process whereby the employees and the superiors come together

    to identify common goals, the employees set their goals to be achieved, the standards to be

    taken as the criteria for measurement of their performance and contribution and deciding the

    course of action to be followed.

    The essence of MBO is participative goal setting, choosing course of actions and decision

    making. An important part of the MBO is the measurement and the comparison of the

    employees actual performance with the concept ofManagement by Objectives (MBO) was

    first given by Peter Druckerin 1954. It can be defined as a process whereby the employees

    and the superiors come together to identify common goals, the employees set their goals to be

    achieved, the standards to be taken as the criteria for measurement of their performance and

    contribution and deciding the course of action to be followed.

    The essence of MBO is participative goal setting, choosing course of actions and decision

    making. An important part of the MBO is the measurement and the comparison of the

    employees actual performance with the standards set. Ideally, when employees

    Page 18 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    19/71

    themselves have been involved with the goal setting and the choosing the course of action to be

    followed by them, they are more likely to fulfill their responsibilities.

    THE MBO PROCESS

    UNIQUE FEATURES AND ADVANTAGES OF MBO

    The principle behind Management by Objectives (MBO) is to create empowered

    employees who have clarity of the roles and responsibilities expected from them,

    understand their objectives to be achieved and thus help in the achievement of

    organizational as well as personal goals.

    Page 19 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    20/71

    360 Degree Performance Appraisals

    360 degree feedback, also known as 'multi-rater feedback', is the most comprehensiveappraisal where the feedback about the employees performance comes from all the

    sources that come in contact with the employee on his job.

    360 degree respondents for an employee can be his/her peers, managers (i.e. superior),

    subordinates, team members, customers, suppliers/ vendors - anyone who comes into

    contact with the employee and can provide valuable insights and information or feedback

    regarding the "on-the-job" performance of the employee. 360 degree appraisal has four

    Integral components:

    1.Self appraisal

    2 Superiors appraisal

    3 Subordinates appraisal

    4.Peer appraisal.

    Self-appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his

    achievements , and judge his own performance. Superiors appraisal forms the traditional

    part of the 360 degree performance appraisal where the employees responsibilities

    and actual performance is rated by the superior.

    Subordinates appraisal gives a chance to judge the employee on the parameters like

    communication and mo t i va t i ng a b i l i t i e s , s u pe r i o r s ab i l i t y t o de l e ga t e t h e

    w o r k , leadership qualities etc. Also known as internal customers, the correct feedback given

    by peers can help to find employees abilities to work n a team, co-operation and sensitivity

    towards others.

    Page 20 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    21/71

    Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree

    Performance appraisal have high employee involvement and also have the strongest impact

    on behavior and performance. It provides a "360-degree review" of the employees

    performance and is considered to be one of the most credible performance appraisal

    methods.

    360 degree performance appraisal is also a powerful developmental tool because when

    conducted at regular intervals (say yearly) it helps to keep a track of the changes others

    perceptions about the employees. A 360 degree appraisal is generally found more suitable for

    the managers as it helps to assess their leadership and managing styles. This technique is being

    effectively used across the globe for performance appraisals. Some of the organizations

    following it are Wipro, Infosys, and Reliance Industries etc.

    Page 21 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    22/71

    Benefits of Performance Appraisal

    If appraisal is to be effective, staff must see the process attempting to meet their needs,

    otherwise the system will not work. This means Heads of Department do need to form an

    overview of the issues raised by their staff and if appropriate feed these into the planning

    process. Appraisal should result in:

    Benefits for the individual:

    Gaining a better understanding of their role

    Understanding more clearly how and where they fit in within the wider picture

    A better understanding of how performance is assessed and monitored

    Getting an insight into how their performance is perceived

    Improving understanding of their strengths and weaknesses and developmental

    needs

    Identifying ways in which they can improve performance

    Providing an opportunity to discuss and clarify developmental and training needs

    Understanding and agreeing their objectives for the next year.

    An opportunity to discuss career direction and prospects.

    Benefits to the line manager/supervisor/team leader:

    Opportunities to hear and exchange views and opinions away from the normal

    pressure of work

    An opportunity to identify any potential difficulties or weaknesses

    An improved understanding of the resources available

    An opportunity to plan for and set objectives for the next period

    An opportunity to think about and clarify their own role

    An opportunity to plan for achieving improved performance

    An opportunity to plan for further delegation and coaching

    An opportunity to motivate members of the team

    Page 22 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    23/71

    Benefits to the organization:

    A structured means of identifying and assessing potential

    Up-to-date information regarding the expectations and aspirations of employees

    Information on which to base decisions about promotions and motivation

    An opportunity to review succession planning

    Information about training needs which can act as a basis for developing training

    plans

    Updating of employee records (achievements, new competencies etc)

    Career counselling

    Communication of information

    Disadvantages of performance appraisal

    Performance appraisals are usually part of a yearly review process in which a supervisor

    reviews the job performance, goal completion and projects accomplished by an employee.

    While the structure of performance appraisals offers a way for giving constructive feedback

    to employees, which in turn can be used as a reward or a motivational tool, there are

    downsides to traditional performance appraisals.

    One Sided Input

    Traditional performance appraisals involve a supervisor and supervisee, both of which have

    limited perspectives. As with any situation, limited perspectives lead to a limited amount of

    information by which to judge performance.

    If a manager is busy supervising several people, as well as tasks and other projects, then there

    will be limited time to take in the full scope and practice of the performance of the

    supervisee. As an alternative, many industries today are utilizing 360-degree feedback, which

    takes into account the relationships that an employee has with peers, customers, clients,

    supervisors and those whom the supervisee is responsible for overseeing.

    Page 23 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    24/71

    Forms Only Give Quantitative or Qualitative Data

    Many times, feedback forms that are utilized in performance appraisals only use quantitative

    or qualitative measures, but not both. Quantitative appraisals mainly measure numbers, such as

    how many projects, how many were on time. While this is important, there are other things to

    take into consideration.

    Qualitative benchmarks involve the completion of personal or professional goals and the

    stories of how the supervisee utilized opportunities to lead by example and proactively

    implement the values and mission of the organization. Listening to the stories of what has

    happened over the past year and looking at numbers and outcomes will result in a clearer

    picture of what the value of the employee is to the organization.

    Once-a-Year Raises

    Performance appraisals are usually done once a year and are connected to an increase in

    salary. This is a disadvantage in that supervisees generally live in fear and experience anxiety

    when their review time comes up. Having more consistent interaction when it comes to

    feedback between management and supervisees can help reduce the fear, anxiety and

    wondering about a raise.

    Furthermore, the employee naturally will want to bargain for more money focusing on their

    strengths and the management will want to emphasize the constructive areas of

    performance evaluation in order to keep from giving raises, since money is a limited

    resource in any organization. This adds to the stress of the review

    Page 24 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    25/71

    COMPANY PROFILE

    The JOCIL Limited was incorporated by Jaya Lakshmi group of industries, Tanuku, west

    Godavari dist on 20-02-78.The Andhra Pradesh oil and chemical industries LIMITED as a jointventure. In 1982 40% of shares were held by Jaya Lakshmi factories and the name was

    changed as JayaLakshmi oil and chemical industries limited. Further in july 1992 its logo has

    been changed as JOCIL limited after organizing the whole shares were hold by the company.

    Main products of the company are fatty acids, Glycerin, Toilet soaps, etc., Fatty acids and

    soaps projects were set up on turnkey basis through M/s.Ballastra (INDIA) Limited,

    Bombay with technology and equipment of CMD, Italy.

    INITIAL INVESTMENT:

    The company has set up Es.33crores Fatty acids and soap project on turn they basis

    through M/s. Ballestra(INDIA) Limited , Bombay with technology and equipment of

    CMB., Italy.

    LOCATION OF THE COMPANY:

    The company is located at Dokiparru in Medikonduru Mandal of Guntur District in the state

    of Andhra Pradesh. The area was declared as backward one by the Government of Andhra

    Pradesh. It is only 15 KM from Guntur and it on Guntur - Narasaraopet highway. It is well

    connected by both rail and road transportation. It is only 45 km., from Vijayawada,

    which is industrially located.

    HISTORY OF JOCIL LIMITED

    JOCIL LIMITED is situated at Dokiparru, which is in Medikonduru Mandal of Guntur

    District of Andhra Pradesh.

    Main products of the company are fatty acids and toilet soaps. The equipment was supplied

    by Messrs. Ballastra (INDIA) Limited , Bombay with the technologies of Italy.The

    Government has given permission for the manufacture of processed fatty acids and individual

    fatty acids with actual licensed capacity of 9000 metric tons and glycerin with the licensed

    capacity of 9000 metric tons and toilets soaps with a licensed capacity of 5000 metric From

    Page 25 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    26/71

    time to time the company received letters from the Department of industrial

    Development, Ministry of industry, Governments of India, New Delhi. The present

    licensed capacity of fatty acid is 37500 metric tons, Glycerin is 1800 metric tons, and toilet

    soaps 15000 metric tons in JOCIL the number of workers employed were 451. The some o f

    the main competitors of JOCIL are Godrej, Vegetable Vitamin and fats limited, Siris

    Agro limited. JOCIL Limited was incorporated in 20thFebruary , 1978 with the name of

    Andhra Pradesh oil and chemical industries limited. This was a jo i n t venture with

    Andhra Pradesh Industrial development corporation (APIDC) and was Andhra Pradesh Oil

    and chemical industries Limited was changed into Jaya Lakshmi Oil and chemical Industries

    Limited.

    The companys name has been subsequently changed from JayaLakshmi Oil and

    chemical industries Limited to JOCIL Limited with effect from 17th September, 1992.

    JOCIL Limited is a subsidiary of the Andhra Sugars Limited, Tanuku.

    POLICIES AND PHILOSOPHY OF JOCIL LIMITED:

    The company has well defined policies for

    1. Quality

    2. Consumer Safety

    3. Safety, Health and Environment (SHE)

    Companys Philosophy:

    1. To be a Successful Profit Making Organization.

    2. To Conduct i t s Operat ions wi th Honesty, Integr i ty and Transparency.

    3. To be the Market Leader in its Field of Operations through Continual improvement in

    Efficiency and Quality of Products & Services.

    4. To have Concern for Employees, Shareholders, Customers and Business associates.

    5. To Serve Society through Industry.

    6. To care for the Environment and the World in which we live.

    Page 26 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    27/71

    OBJECTIVE OF JOCIL LIMITED:

    The main objective of the company is to manufacture fatty acids and toilet soaps.

    The company received letter of intent from department of industrial development, ministry

    of industries, Government of India, New Delhi, Enhancing the annual licensed capacity of fatty

    acids, Glycerin and toilet soap. The company has implemented this letter by increasing

    installation capacity of Fatty acids paint from 6,205 M.T per annum to15,510 MT with effect

    from February, 1991. This enhanced capacity came into operation.

    Industrial licensing & shareholders pattern

    As the value of fixed assets envisaged in the project is less than Rs.3.3 Crores the industrial

    license is not required for setting of this project. The company has been registered with

    directorate general of technical development (DGTD) Government of India, New Delhi

    Bering No.DGTD/HQ/D-S-/R-4733/C-26 (N)/SE/79 with their letter dated 21-05-1979

    and 31-03-1990 for the manufacture of

    1 Processed fatty acids / Industry fatty

    Acids

    9000

    2 Glycerin 900

    3 Toilet soaps 5000

    Shareholders pattern:

    31-03-1997

    Promoters

    (The Andhra sugars limited, holding company) 55.02%

    Public Institutions:

    (ICICI & ISEC) 33.63%

    Face value of share: Rs 10/- each Profile

    of the Jocil limited - Small scale unit

    Nature of unit - Manufacturing

    Page 27 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    28/71

    ORGANIZATIONAL STRUCTURE OWNERSHIP AND MANAGEMENT:-

    BOARD OF DIRECTORS:

    Dr. Mullapudi Harischandra Prasad - Chairman

    Shri Jagarlamudi Murali Mohan - Managing Director

    Shri Pendyala Narendranath Chowdary - Director Shri

    Mullapudi Thimmaraja - Director Shri

    Yelamarti Narayanarao Chowdary - Director Shri

    Vuppalapati Seetharama Raju - Director

    Shri Kandimalla Srinivasa Rao - Director

    Shri M. Gopalakrishna, IAS (Retd.) - Director

    Shri Subbarao V. Tipirneni - Director

    SENIOR EXECUTIVES

    Sri P. Kesavulu Reddy - President & Secretary

    BANKERS:

    Andhra Bank - Guntur

    State Bank of India - Guntur

    AUDITORS:

    Brahmaiah & Co., - Guntur

    COST AUDITORS:

    Narasimha Murthy & co., - Hyderabad

    REGISTERED OFFICE & FACTORY:

    JOCIL LIMITED, Dokiparru, Guntur 522019

    Andhra Pradesh

    Page 28 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    29/71

    FOREIGN EXCHANGE EARNINGS AND OUT GO:

    There were no foreign exchange earnings during the year. In previous year the company

    exported crude glycerin and earned foreign exchange equivalent to Rs.55,69,519/-. The

    company improved raw materials, spares during the year resulting in foreign exchange

    auto equipment to Rs.6,56,93,981/- (previous year Rs.67,940/-).

    FINANCE:

    The company is regular in repaying the instalments of principal and interest on the loan of

    Rs.8.80 Crores obtained from Andhra Bank for power plant. The Company has not availed

    the term loan of Rs.3.20 crores sanctioned by State Bank of India for power plant as

    requirements were met with the internal reserves generated form the operations.

    DIVIDEND:

    Considering the profitability of the company, the Board of Directors has been pleased to

    recommend for the approval of the Company, payment of dividend of 50% (taxable)

    on the equity share capital of Rs.4,44,05,750/- amounting to Rs.222.03 lakhs. In the

    previous year the Company paid a total dividend of 50% on equity share capital.

    FUTURE OUTLOOK:

    The competition in the Fatty Acid industry continues to be severe. The reduction in

    customs duty has promoted many users to import their requirements instead of depending on

    the indigenous supplies. During the year, a 100 tpd capacity fractional distillation plant was set

    up to improve the range and quality of fatty acids produced.

    BIOMASS POWER:

    Page 29 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    30/71

    The Company has been making third party sale of surplus power as per the benefits offered at

    the time of setting up of Biomass co-generation power plant. Subsequently, Andhra Pradesh

    Electricity Regulatory Commission, Hyderabad (APERC) has prohibited third party sales by

    its order dated 20th June, 2001. The Company has in turn obtained stay order from the

    Honorable High Court to continue third party sales. Again, APERC by its order dated 24th

    March, 2002 has increased wheeling charges from 2% in kind to 28.4%in kind and 50 Ps. Per

    kWh in cash. AP TRANSCO is also offering discounts up to 25% of energy charges on the

    increased power consumption to attract the consumers away from private generators. This

    being so, the Company is restricted in choosing its customer as AP TRANSCO is not

    accepting charges in the schedule of customers to power purchase and wheeling agreement.

    In view of these problems, the Company is planning to sell the entire surplus power to AP

    TRANSCO in spite of obtaining stay on the order of APERC for third party sales and increase

    in wheeling charges. RESEARCH AND DEVELOPMENT (R & D)

    1. Specific areas in which R & D carried out by the company quality

    improvements of the products and efficient use of utilities.

    2. Benefits derived as a result of the above (R & D). improved products quality,

    quantity and conservation of utilities.

    3. Future plan of actions Utilization of various field residues as fuel in power plant.

    4. Enhancing capabilities through use of latest technology in fatty acids.

    Expenditure of R & DRs. In Lakhs

    2006-2007 2005-2008 a)Capital 4.33 0.29

    b) Recurring 11.00 10.66Total 15.33 10.95

    Total R & D expenditure as a percent of turnover 0.26 0.10

    Marketing

    The company mainly markets its products form its depots held at Bombay, Delhi, Kolkata,

    Page 30 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    31/71

    and bangalore, and directly from the factory. The prices are fixed basing on its competitors

    and the variations in the prices of ram materials. No of advertising is done by the fatty

    acids. As it is an industrial product, the company does not allocate any amount on

    advertisement and the consumers come to the depots of factory and place their orders in the

    case of soaps, as they are manufacturers on the contract basis of HLL no advertising is

    required. Jocil leads only with the soap products and the marketing & advertising is taken over

    by HLL.

    Financial

    Jocil Ltd purchased equipment form IFCI on completions of leas period. Andhra Bank and state

    bank of India have sanctioned term loans of Rs 8.80 Crores and Rs.3.20 Crores respectively for

    setting up 6MR Biomass cogeneration power plant in the existing premises. during the yearterm loan from Andhra Bank was drawn and utilized, the company expects to drawn the

    amount of SBI in the current year.

    PERFORMANCE AND ACHIEVEMENT OF JOCIL:

    1. JOCIL is a leading manufacturer of all kinds of Fatty Acids. It also

    manufactures soaps.

    2. JOCIL supplies different grades of stearic acid and other fatty acids to other

    manufacturing companies of pharmaceuticals, chemicals, plastics etc.,

    3. JOCIL supplies Fatty Acids to meet their specific requirements of Stearic Acid Oleic Acid etc.

    4.JOCIL manufactures soaps on contract basis to HLL.

    5. JOCIL supplies soap noodles of Margo brand to Calcutta Chemicals Company.

    6. JOCILs production of quality goods is due to the following factors

    Page 31 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    32/71

    (a) Usage of good quality raw materials like rice bran oil, coconut oils, cotton seed oils

    etc.

    (b) The processing and purification of Fatty Acids is done by using latest

    technology.

    (c) The technology and requirement of JOCIL has been imported from C.M.B.,

    Italy.

    (d) Maintenance of quality control by experienced and committed operating

    personnel.

    (e) Toilet soaps and glycerin are manufactured as per BISC (formerly known as

    ISI) Standards.

    (f) It uses high quality chemicals for the purification and processing of the

    Fatty Acids.

    (g) It maintains international standards in manufacturing its products so as to suit

    different kinds of industrial

    PRODUCTS OF JOCIL:

    Jocil has set up a modern plant for the manufacturing of fatty acids, toilet soap

    and refined Glycerin. The products manufactured are of international standards

    to suit different industrial users. Jocil is manufacturing two types of products.

    1. Industrial Goods (chemical)

    2. Consumers Goods (soaps)

    Fatty acids, refined glycerin and other fatty acid pitches fall under the

    category of industrial goods where as soaps come under the category of consumer

    goods.

    Fatty acids are manufactured from vegetable oils and fats. There are different types

    of fatty acids for different industrial applications. The following are the different

    kinds of fatty acids, which can be manufactured in Jocil.

    1. Crude fatty acids of vegetable acids & fats.

    2. Distilled fatty acids of vegetable acids & fats.

    3. Hydrogenated fatty acids of vegetable acids & fats

    Page 32 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    33/71

    Out of the above type of fatty acids, Jocil is manufacturing the following the fatty

    acids which are a major portion of their sales.

    1. Stearic acid

    2 .Oleic acid. 3. Distilled & Hydrogenated fatty acids.

    STEARIC ACID:

    In stearic acid, different grades are produced with standard specifications for

    different industrial consumers.

    The following are the different grades of Stearic acids consumed by different

    industries in manufactured their own industrial products.

    REFINED GLYCERINE:

    Two varieties of refined glycerin are produced namely.

    1. Chemically pure grade (C.P)

    2. Industrial white (I.W)

    Glycerine is used in pharmaceuticals, cosmetics, explosives, paints, store ink,

    chemicals, tooth paste etc.

    OLEIC ACID:

    Only one variety of oleic acid namely commercial grade is manufactured by Jocil.

    It is used in fertilizers, cutting oils, liquid soaps and other chemical

    manufactures.

    DISTILLED FATTY ACID:

    The fatty acids of different oils are tailor made products to suit different

    industrial users specifications.

    At present Jocil is manufacturing distilled hydrogenated rice bran fatty

    acids, distilled cottonseed oil fatty acids, distilled coconut acids. They have plans tomanufacture some more variables in future.

    Distilled hydrogenated rice bran fatty acids and distilled palm fatty acids are also

    being manufactured for consumption in soap plant for the manufacture of toilet

    soaps.

    Page 33 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    34/71

    FATTY ACID PITCHES:

    Fatty acid pitches are obtained during distillation of crude fatty acids. These

    products are supplied to laundry soaps, grease, foundry chemicals uses.

    SOAP MANUFACTURING: Different types of distilled fatty acids and

    hydrogenated fatty acids are mixed to obtain a desired quality of toilet soaps.

    Different types of soaps are manufactured to satisfy different types of users.

    Generally features of toilet soaps should be good lather, good perfume, stability and

    longer use.

    Staff and workers particulars :

    Administration 31

    Account 11

    Marketing 5

    EDP 3

    Time office 7

    Stores 12

    Security 20

    Transport 4

    Production 120

    Laboratory 27

    Maintains 63

    Civil 9

    Electrical 151

    Soap 170

    Page 34 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    35/71

    Total 633

    Jocil was stared with 160 employees Due to diversification of its activities in

    Manufacturing of products and expansion of its production its mane power increased to

    529 employees working in 28 sections at various cadres.

    INDUSTRY PROFILE

    INDUSTRIAL LICENSE:

    The Government has given permission for the manufacture of processed

    fatty acids and individual fatty acids with the annual licensed capacity of 89000

    metric tons and glycerin with the licensed capacity of 900 metric tons toilet soaps

    with a licensed capacity of 5000 metric tons.

    From time to time the company revised its capacities with the cooperation

    from the Department of Industrial Development, Ministry of Industry,

    Government of India, New Delhi. The present licensed capacity of fatty acids is

    3,75,000 metric tons, glycerin is 1800 metric tons, and toilet soaps 15000 metric

    tons.

    As the value of fixed assets envisaged in the project is less than

    Rs.3.3crores the industrial license is not required for setting of this project. The

    company has been registered with directorate General of Technical Development

    (DGTD), Government of India, New Delhi bearing No. DGTD/HQ/D-S-S/R-

    4733/C-26(N)/SE/79 with their letter No. shop dated 21-5-1979 and soap /2(39)

    79 dated 31-3-1990 for the manufacture of

    1. Processed Fatty Acids 9,000

    2. Glycerin 900

    3. Toilet soaps 5,000

    Page 35 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    36/71

    PRODUCTION FACILITIES OF FATTY ACIDS:

    Adapting Latest Technologies

    .... High Pressure Fatty Splitting Plant

    .... Fatty Acid Fractionation Plant

    .... Sweet Water Evaporation Plant

    .... Fully Automated & Centralised Control System

    .... Proven Technologies of Gianazza, Sulzer and CMB

    .... Equipped with Facilities/ Plants to Process Different Oils at a time

    Plant Control through DeltaV Distributed Control System

    . Supplied by Emerson Process Management

    . Advanced Diagnostics & Process Performance Monitoring

    . Remote Calibration and Diagnostics of Field Instruments

    . Uses latest Foundation Fieldbus & HART Field Instruments

    PRODUCTS OF JOCIL:

    JOCIL has setup a modern plant for the manufacturing of Fatty Acids, toilet soaps and

    refined glycerin. The major equipment was imported with latest technology. The

    products manufactured are of international standards to suit different industrial users.

    JOCIL is manufacturing two types of products.

    1.Industrial Goods (Chemicals)

    2.Consumers Goods (Soaps)

    Fatty Acids, refined Glycerin and other Fatty Acids pitches fall under the

    category of industrial goods where as soaps come under the category of

    consumers goods.

    Fatty Acids are manufactured from vegetable oils and fats there are different types

    of Fatty Acids for different industrial applications. The following are the different

    kinds of Fatty Acids, which can be manufactured in JOCIL.

    Page 36 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    37/71

    1. Crude Fatty Acids of vegetable Acids & Fats.

    2. Distilled Fatty Acids of vegetable Acids & Fats.

    3. Hydrogenated Fatty Acids of vegetable Acids & Fats.

    Out of the above type of Fatty Acids JOCIL is manufacturing the following Fatty

    Acids with major portion of their sales.

    1. Stearic Acid

    2. Oleic Acid

    3. Distilled & Hydrogenated Fatty Acids.

    STEARIC ACID:

    In the Stearic Acid, different grades are produced with standard specifications for

    different industrial consumers.

    The following are the different grades of Stearic Acids consumed by

    different industries in manufacturing their own industrial products.

    1. Stearic acid of 11 grades

    2. Distilled hydrogenated Rice Bran Fatty Acid

    3. Distilled Rice Bran Fatty Acid

    4. Oleic Acid Commercial

    5. Soap Noodles

    6. Glycerine of two types

    (a) Chemically Pure Grade

    (b) Industrial White Grade

    Capacity per day at present:

    1.Stearic acid & Ferry acid -- 100 metric tons per day

    2.Soap noodles -- 70 metric tons per day

    3.Glycerine -- 450 metric tons per day

    Go down capacity:

    Guntur(Factory) : 750 tons

    Page 37 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    38/71

    Delhi : 200 tons

    Calcutta : 100 tons

    Various grades of Stearic Acids:

    JOTEX GRADE JOTEX

    SPECIAL

    GRADE

    Used in Drugs, Pharmaceuticals,

    Cosmetics, Chemicals & Plastics

    JOSTRIC SPECIAL GRADE Chemicals, Calcium Carbonate

    JOSTRIC GRADE Metal Polish, Grease, Metallic Polish,

    PVC Stabilizers and Chemicals

    JOSTRIC 9 Metal Polish, Grease, Metallic Polish,

    PVC Stabilizers and Chemicals

    JOSTRIC 11 PVC

    JOMEL Rubber, Cement & PaintsRUBBER GRADE Rubber, Metallic Polish

    ECONOMY Rubber, Metallic Polish, Grease

    Page 38 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    39/71

    RESEARCH METHODOLOGY

    INTRODUCTION:

    Research methodology is a way to systematically solve the research problem. In it

    various types that are generally adopted by are search in studying his research problem

    along with the logic behind problem. Research means a search for knowledge. RESEARCH

    PROBLEM:

    A research problem is general refers to some difficulty, which a researcher experience in the

    content of either the cortical or practical situation and wants to obtain a solution for the

    same. According to this project the organization is facing some problem with the workers

    regarding their welfare facilities so the organization needs the level of satisfaction

    and their opinions. So this topic is given to me for analysis.

    2.1 RESEARCH DESIGN:

    A research design is the arrangement of conditions for collection and

    analysis of data in a manner that aims to combine relevance to the research purpose

    with economy in procedure.

    IMPORTANT FEATURES OF RESEARCH DESIGN:

    1) It provides the sources and types of information relevant to the research

    problem.

    2) It will suggest which approach will be used for gathering and analyzing the data.

    3) It provides the time and cost budget, since most studies are done under these two

    constrains.

    Sample Design:

    A sample design is a definite plan for obtaining a sample from a given

    population:

    Sample unit : Employers as well as workers in JOCIL LIMITED .

    Size of sample : 75Sample design : Simple random sampling design

    Stratified Sampling:

    Page 39 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    40/71

    Under stratified sampling the population is divided into several sub

    population that are individually more homogeneously than that of the total

    population and then we select item from each strain to constitute a sample.

    Scaling technique:

    Rating scale technique is used in this study. The rating scale involves

    qualitative description of a limited No of aspects of a thing or of the trades of

    person. When we use rating we jute an object in absolute terms against some

    criteria.

    Pretesting:

    In order to test the suitability of the questionnaire, the research has gonefor, pre- testing

    with 2 respondents in the employees; this helped the researcher to make the

    questionnaire more, simple and practical oriented.

    Pilot study:

    The researcher visited the organization, selected for the study thrice and got

    permission for doing research study from the personnel manager, who had formal

    discussions with Him to know about the feasibility of conducting the study in the

    industry.

    METHODS OF DATA COLLECTION

    Primary data:

    The data is collected by Questionnaire method. Questionnaire is considered as

    heart a survey opinion.

    A Questionnaire is constructed and a Questionnaire is given to each worker for

    this responds. The response are collected for them and used for analysis. In this way

    the primary data is collected.

    SECONDARY DATA:

    Secondary data collected from journals and internet.

    Page 40 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    41/71

    Chi-square test:

    X2 test for independence of attributes helps in checking whether two attributes

    are related or not.

    1. Observation recorder and used are collected on random basis.

    2. All the items in the sample must de independent.

    3. No group should contain very few items say less than 10. in case where the

    frequencies of adjoining groups. So that the new frequencies of adjoining

    groups. So that the new frequencies become grater than 10 samples

    statisticians.

    4. The overall number of items must also be reasonably large. It should

    normally be at least 50, however small the number of groups may be.5. The constrains must be liner. Constraints which involve linear equation in

    the cell frequencies of a contingency table are known as linear, constraints.

    STEPS INVOLVED IN APPLYING CHI-SQUARE TEST:

    1) First of all calculate the expected frequencies on the ;basis of given hypothesis

    or on the basis of null hypothesis, the expected frequency for any given cell isworked our as under.

    The expectedfrequency of any

    cell

    a

    n

    y

    cel

    l

    (Row total for the row ofthat cell) X

    = (Column total for the column

    of that cell)

    G

    randtot

    Page 41 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    42/71

    a l

    1. Obtain the difference between observed and expected

    frequencies and find out the squares of such differences.

    2. (i.e.) Calculate (Oij - Eij)2

    Page 42 of71

  • 7/30/2019 52042690 Performance Appraisal Project

    43/71

    3. . Divide the quantity (Oij - Eij)2 obtained as started above by the

    corresponding expected frequency to get (Oij - Eij)2 / Eij and his

    should be done for all frequencies.

    4. Find the summation of the (Oij - Eij)2 / Eij values (or) what we call.

    LIMITATIONS

    1. The survey was conducted within limited time frames so that a few short

    comings may be expected.

    2. The respondents personal basis may be another factor which is

    incontrollable.

    3. The findings of the survey is strictly based on the responses of employees.

    4. The factory functions in shift system so all shift workers did not take part in

    the sample.

    5. Due to lack of time, the surely was contacted only 50 Respondents.

  • 7/30/2019 52042690 Performance Appraisal Project

    44/71

    DATA ANALYSIS AND INTERPRETATION

    (!) ARE YOU FULLY AWARE OF PERFORMANCE APPRAISAL SYSTEM IN

    YOUR ORGANAIZATIN

    S NO DESCRIPTION NUBER PERCENT

    1 YES 55 74

    2 NO 20 26

    TOTAL 75 100

    YESNO

    INTERPRETATION:

    The above table reveals that 74% of employees are fully aware of performance appraisal

    system, 26% of employees has no idea about performance appraisal system

    CONCLUSION

    From the above table it is observed that most of the employees are fully aware of

    performance appraisal and some employees are not aware of performance appraisal

  • 7/30/2019 52042690 Performance Appraisal Project

    45/71

    (2) Does the performance appraisal is done based on what

    S NO DESCRIPTION NUBER PERCENT

    1 Performance 43 57.3

    2 qualification 25 33.33

    3 No of hours

    working

    7 9.33

    4 None of these 0 0

    Perf

    ormance

    qualif

    ication

    No of hours w orking

    INTERPRETATION:

    The above table reveals that 57.3% employees performance appraisal is done based on

    performance, 33.33% of employees performance appraisal is done based on qualification,

    and 9.33% of employees performance appraisal is done based on number hours of working

    CONCLUSION

    From the above table it is observed that maximum performance appraisal is done based on

  • 7/30/2019 52042690 Performance Appraisal Project

    46/71

    performance some times it done based on qualification.

  • 7/30/2019 52042690 Performance Appraisal Project

    47/71

    (3) What does performance appraisal determines

    S NO DESCRIPTION NUBER PERCENT

    1 Increments 39 52

    2 Rewards 21 28

    3 Bonus 15 20

    Increme

    nts

    Rewar

    ds

    Bonus

    INTERPRETATION:

    The above table reveals that 52.3% of performance appraisal determines increments 22%

    of performance appraisal determines rewards and 20% of performance appraisal

    determines bonus.

    CONCLUSION

    From the above table it is observed that maximum performance appraisal determines

    increments and some times it determines rewards and bonus.

  • 7/30/2019 52042690 Performance Appraisal Project

    48/71

    (5) Does the performance appraisal leads to

  • 7/30/2019 52042690 Performance Appraisal Project

    49/71

    S NO DESCRIPTION NUBER PERCENT

    1 Self development 16 21.3%

    2 Group development 15 20 %

    3 Organizational

    development

    31 41.3%

    4 Society

    development

    13 17.3%

    Selfdevelopment

    Group

    developme

    nt

    Organization

    al

    development

    Society

    developme

    nt

    INTERPRETATION:

    The above table reveals that 21.3% of performance appraisal leads to Self development ,

    20% of performance appraisal leads to group development,41.3% of performance appraisal

    leads to Organizational development and 17.3% of performance appraisal leads to Society

    development

    CONCLUSION

    From the above table it is observed that maximum performance appraisal leads to

    Organizational development, and some times it leads to self, group, and society

    development.

  • 7/30/2019 52042690 Performance Appraisal Project

    50/71

    (5) Does performance appraisal suggest the ways of improving employee performance?

  • 7/30/2019 52042690 Performance Appraisal Project

    51/71

    S NO DESCRIPTION NUBER PERCENT

    1 YES 58 77.33

    2 NO 17 22.66

    Y

    E

    SNO

    INTERPRETATION:

    The above table reveals that 77.33% performance appraisal improves the

    employees performance 22.66% of performance appraisal does not improves the

    employees performance

    CONCLUSION

    From the above table it is observed that most the time performance appraisal

    improves employees performance and some times it does not improves the

    employees performance

  • 7/30/2019 52042690 Performance Appraisal Project

    52/71

    (6) Does the performance appraisal evaluation identifies the training and

    development needs

  • 7/30/2019 52042690 Performance Appraisal Project

    53/71

    S NO DESCRIPTION NUBER PERCENT

    1 YES 58 77.33%

    2 NO 17 22.66

    TOTAL 75 100

    YESNO

    INTERPRETATION:

    The above table reveals that 77.33% performance appraisal identifies training and

    development needs 2.66% of performance appraisal does not identifies the training and

    development needs

    CONCLUSION

    From the above table it is observed that most the time performance appraisal identifies

    training and development needs and some times it does not identifies the training and

    development needs

    (7) Does the management is giving information about process of performance appraisal

    system

  • 7/30/2019 52042690 Performance Appraisal Project

    54/71

    S NO DESCRIPTION NUBER PERCENT

    1 Fully 50 66.66

    2 Partially 15 20

    3 No 10 13.33

    Fully

    Partially

    No

    INTERPRETATION:

    The above table reveals that 66.66% of employees saying that management is giving

    information about process of performance appraisal system, 20% of employees saying that

    management is t giving partial information about a process of performance appraisalsystem and 13.33% of employees saying that management is not giving information about

    a process of performance appraisal

    CONCLUSION

    From the above table it is observed that most of the times management is giving

    information about process of performance appraisal system. And some times

    management is not giving information about a process of performance appraisal

    (8) are you finding any difficulties while evaluating performance?

    S NO DESCRIPTION NUBER PERCENT

  • 7/30/2019 52042690 Performance Appraisal Project

    55/71

    1 YES 17 22.66%

  • 7/30/2019 52042690 Performance Appraisal Project

    56/71

    2 NO 58 77.33%

    YES

    NO

    INTERPRETATION:

    The above table reveals that 77.33% employees does not finding any difficulties while

    evaluating performance appraisal 22.66% of employees finding difficulties while

    evaluating performance appraisal

    CONCLUSION

    From the above table it is observed that most of the employees does not finding any

    difficulties while evaluating performance appraisal and few employees finding

    difficulties while evaluating performance appraisal

    (9)opinion about process of performance appraisal system in their organization

    S NO DESCRIPTION NUBER PERCENT

    1 Excellent 38 50.66

    2 Good 20 26.66

    3 Moderate 17 22.66

  • 7/30/2019 52042690 Performance Appraisal Project

    57/71

    ExcellentGood

    Moderate

    INTERPRETATION:

    The above table reveals that 50% of employees have excellent opinion on performance

    appraisal system, 26.66% of employees have good opinion on performance appraisal

    system and 22.66% of employees moderate opinion on process of performance appraisal

    CONCLUSION

    From the above table it is observed that half of the employees feel that process performance

    appraisal system is good and very few of employees feel that it is ok but not that much.

    (10) What performance appraisal method is following in your organization?

    S NO DESCRIPTION NUBER PERCENT

    1 360 degree appraisal 22 29.33%

    2 Self appraisal 55 70.66%

  • 7/30/2019 52042690 Performance Appraisal Project

    58/71

    360degree

    appraisal

    Selfappraisal

    INTERPRETATION:

    The above table reveals that 70.66% employees says that 360 degrees appraisal is

    following in their organization and29.33% of employees says that self appraisal method is

    following in their organizational

    CONCLUSION

    From the above table it is observed that most of the time self appraisal method isfollowing and very few times 360appraisal method is following for evaluating

    performance.

    (11) How is the present used method?

    S NO DESCRIPTION NUBER PERCENT

    1 Excellent 40 53.33%

    2 Good 14 18.66%

    3 Moderate 21 28%

  • 7/30/2019 52042690 Performance Appraisal Project

    59/71

    ExcellentGood

    Moderate

    INTERPRETATION:

    The above table reveals that 53.33% of employees have excellent opinion on performance

    appraisal system, 18.66% of employees have good opinion on performance appraisal

    system and 28% of employees moderate opinion on process of performance appraisal

    CONCLUSION

    From the above table it is observed that half of the employees feel that process performance

    appraisal system is good and very few of employees feel that it is ok but not that much.

    (12) Do you suggest introduction of following appraisal system in your organization

    S NO DESCRIPTION NUBER PERCENT

    1 Performance &

    potential

    19 25.33

    2 Self appraisal 23 30.66

    3 Team appraisal 14 18.66.

    4 360 degree 19 25.33

  • 7/30/2019 52042690 Performance Appraisal Project

    60/71

    appraisal14

    Performan

    ce&

    potenti

    alSelfappraisal

    Teamappraisal

    360

    degree

    appraisal14

    INTERPRETATION:

    The above table reveals that 25.33% of employees suggest Performance & potential ,

    30.66% of employees suggest Self appraisal,18.66% of employees suggest team

    appraisal and 25.33% of employees suggest 360 degree appraisal

    CONCLUSION

    From the above table it is observed that half of the employees suggest 360 degree

    appraisal and team appraisal.

    (13)

    Self appraisal is best from evaluating one performance

    S NO DESCRIPTION NUBER PERCENT

  • 7/30/2019 52042690 Performance Appraisal Project

    61/71

    1 YES 58 77.33%

    2 NO 17 22.66

    TOTAL 75 100

  • 7/30/2019 52042690 Performance Appraisal Project

    62/71

    YESNO

    INTERPRETATION:

    The above table reveals that 77.33% employees says that self appraisal is best forevaluating ones performance 22.66% employees says that self appraisal does not suits to

    evaluating ones performance

    CONCLUSION

    From the above table it is observed that most the time self appraisal gives positive

    results. some times it does not work properly.

    (14) Who is the best person to conduct performance appraisal

    S NO DESCRIPTION NUBER PERCENT

    1 Superior 46 61.33%

    2 Manager 9 12%

    3 Subordinate 3 4%

    4 Self 17 22.66%

  • 7/30/2019 52042690 Performance Appraisal Project

    63/71

    Superior

    Manager

    Subordinate

    Self

    INTERPRETATION:

    The above table reveals that 61.33% employees says that superior is best person to

    evaluate performance , 12% of employees says that manager is best person to evaluate

    performance ,4% of employees says that subordinate is best person to evaluate

    performance, and 22.66% of employees says that self appraisal is best.

    CONCLUSION

    From the above table it is observed that half of the employees opinion is that superior is

    the best person to evaluate ones performance. And some employees prefer subordinate, and

    manager to evaluate performance.

    (15) Performance will assessed

    S NO DESCRIPTION NUBER PERCENT

    1 Annually 65 89.6%2 Quarterly 10 13.3%

  • 7/30/2019 52042690 Performance Appraisal Project

    64/71

    AnnuallyQuarterly

    INTERPRETATION:The above table reveals that 89% employees performance assessed annually and only

    13.3% of employees performance assessed quaterly.

    CONCLUSION

    From the above table it is observed that most the time performance assessed annually,

    and some time it assessed quarterly

    (16) Which one is more helpful for evaluating better performance

    .

    S NO DESCRIPTION NUBER PERCENT

    1 Formal 23 30.66%

    2 Informal 26 34.6%

    3 Both 26 34.6%

  • 7/30/2019 52042690 Performance Appraisal Project

    65/71

    FormalInformal

    Both

    INTERPRETATION:

    The above table reveals that 30.66% employees says that formal appraisal is best to

    evaluate performance ,34.6% of employees says that informal appraisal is best to

    evaluate performance ,and 34.6% of employees says that both appraisal are best to best

    evaluate performance.

    CONCLUSION

    From the above table it is observed that employees prefer formal, informal appraisal for

    evaluating the performance

    Any motivational program is needed to develop performance appraisal system

    S NO DESCRIPTION NUBER PERCENT

    1 YES 45 60%

    2 NO 30 40%

  • 7/30/2019 52042690 Performance Appraisal Project

    66/71

    INTERPRETATION:

    The above table reveals that 60% employees says that motivation program is needed 40%

    employees says that they dont want any motivational program.

    CONCLUSION

    From the above table it is observed that most of the employees preferring motivational

    program

    Where you stand in analysis of performance analysis

    S NO DESCRIPTION NUBER PERCENT

    1 Excellent 24 32%

    2 Good 37 49.33%

  • 7/30/2019 52042690 Performance Appraisal Project

    67/71

    3 Moderate 14 18.66%

    INTERPRETATION:

    The above table reveals that 32% employees have excellent idea on performance

    appraisal,49.44% of employees have good understanding on performance appraisal,

    18.66% of employees have better understanding on performance appraisal

    CONCLUSION

    From the above table it is observed that most of the employees have good understaning of

    performance appraisal system

    Comments on performance appraisal system your organization

    S NO DESCRIPTION NUBER PERCENT

    1 excellent 58 77.33%

    2 Moderate 17 22.66

  • 7/30/2019 52042690 Performance Appraisal Project

    68/71

    TOTAL 75 100

    INTERPRETATION:

    The above table reveals that 77.33% employees says that performance appraisal system is

    good , 22.66% employees says that performance appraisal is ok but not that much

    CONCLUSION

    From the above table it is observed that most of employees have good opinion on their

    performance appraisal system..

  • 7/30/2019 52042690 Performance Appraisal Project

    69/71

    SUGGESTIONS

  • 7/30/2019 52042690 Performance Appraisal Project

    70/71

    C o n duct ing E m p loyee P erformance R ev iew T ip s

    Fairly short suggestions on conducting the performance review meeting, starting with

    greeting, summary, and going through strengths, weaknesses, feedback, salary and closing.

    H R P ract ice T ip: R e d uce the P a in of P erformance Eva luat ions

    Training managers to perform effective and consistent evaluations is essential, since both

    managers and employees often are uncomfortable discussing performance. The training should

    include warning supervisors to refrain from the following eight common errors

    that can distort and even invalidate the evaluation process

    A lternat ive Effect ive performance a p pra is a ls a nd eva luat ions

    The best performance reviews let managers and employees communicate -- share ideas,

    opinions, and information. Unfortunately, most traditional reviews put managers into the

    position of uncomfortable judges, ostensibly telling employees how their work either fit the

    bill -- or didn't. Possibly because of this, most traditional reviews are no better than the

    manager's off-the-cuff judgments, and some may be illegal. Because of these problems, new

    types of reviews are coming into play. Most require that evaluations be done not for raises,

    promotions, or bonuses, but for growth, development, and communication. The most

    important aspect in every case is communication between the employee and other people,

    instead of one-way communication, for higher performance.

    Eas ing the Performance A pprais al Proces s

    By Nanette Miner - Performance appraisals can be stressful for both the manager and the

    employee receiving the appraisal. The process of writing and delivering the appraisal can be

    eased, however, by following these five guidelines.

    http://www.performance-appraisals.org/cgi-bin/links/jump.cgi?ID=4005http://www.performance-appraisals.org/cgi-bin/links/jump.cgi?ID=4292http://www.performance-appraisals.org/cgi-bin/links/jump.cgi?ID=9546http://www.performance-appraisals.org/cgi-bin/links/jump.cgi?ID=3915http://www.performance-appraisals.org/cgi-bin/links/jump.cgi?ID=4005http://www.performance-appraisals.org/cgi-bin/links/jump.cgi?ID=4292http://www.performance-appraisals.org/cgi-bin/links/jump.cgi?ID=9546http://www.performance-appraisals.org/cgi-bin/links/jump.cgi?ID=3915
  • 7/30/2019 52042690 Performance Appraisal Project

    71/71

    BIBILIOGRAPHY:

    w w w .goog le.com

    w w w .s cr ibd.com

    w w w .c ityhr.com

    http://www.google.com/http://www.scribd.com/http://www.cityhr.com/http://www.google.com/http://www.scribd.com/http://www.cityhr.com/