52042690 performance appraisal project
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PERFORMANCE
APPRAISALBy Amruta Shetty
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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
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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.
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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
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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.
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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
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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
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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.
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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.
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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.);
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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.
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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.
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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.
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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
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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
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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
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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.
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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
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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.
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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.
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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.
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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
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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.
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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
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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
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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.
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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
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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
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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:
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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,
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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
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(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
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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.
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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
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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
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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.
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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
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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
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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:
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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.
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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
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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
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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.
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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
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(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
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performance some times it done based on qualification.
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(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.
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(5) Does the performance appraisal leads to
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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.
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(5) Does performance appraisal suggest the ways of improving employee performance?
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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
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(6) Does the performance appraisal evaluation identifies the training and
development needs
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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
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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
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1 YES 17 22.66%
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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
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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%
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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%
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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
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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
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1 YES 58 77.33%
2 NO 17 22.66
TOTAL 75 100
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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%
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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%
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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%
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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%
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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%
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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
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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..
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SUGGESTIONS
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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 -
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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/