effectiveness of performance appraisal system power soap ltd manufacturing industry

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CHAPTER - I INTRODUCTION 1

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Page 1: Effectiveness of Performance appraisal system Power Soap ltd manufacturing industry

CHAPTER - I

INTRODUCTION

CHAPTER – 1

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INTRODUCTION

Appraising the performance of individuals, groups and organizations is a

common practice of all societies. While in some instances the appraisal processes are

structured and formally sanctioned, in other instances they are an informal and

integral part of daily activities. Thus, teachers evaluate the performance of students,

bankers evaluate the performance of creditors, parents evaluate the behavior of the

children, and all of us, consciously or unconsciously evaluate our own actions from

time to time.

“Performance appraisal” has been identified as one of the most complex of

man-management activities. It is often a difficult and emotion laden process.

Performance appraisal has become part of organizational life. Every organization has

some kind of evaluating the performance of its personnel.

“Performance appraisal” or “Merit rating” is one of the oldest and

universal practices of management. This approach resulted in an appraisal system in

which the employee’s merits like initiative, dependability, personality etc were

compared with others and ranked or rated.

HISTORY

During and after World War I, systematic performance appraisal was quite

prominent. Credit goes to Walter Dill Scot for systematic performance appraisal

technique of “man-to-man rating system” (merit rating). It was used for evaluating

military officers. Industrial concerns also used this system during 1920s and 1940s

for evaluating hourly paid workers. However, with the increase in training and

management development programs from 1950s, management started adopting

performance appraisal for evaluating technical, skilled, professional and managerial

personnel as a part of training and executive development programmes. With this

evolutionary process, the term merit rating had been changed into employee appraisal

or performance appraisal.

MEANING

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Performance Appraisal is a method of evaluating the behavior of employees in

the work spot, normally including both the quantitative and qualitative aspects of job

performance. Performance here refers to the degree of accomplishment of the tasks

the make up an individual’s job. It indicates how well an individual is fulfilling the

job demands. Often the term is confused with effort, which means performance is

always measured in terms of results.

“Performance appraisal” is a systematic evaluation of present and potential

capabilities of personnel and employees by their superiors, superior’s superior or a

professional from outside. “It is a process of estimating or judging the value, excellent

qualities or status of a person or thing.”

DEFINITION

1 According to ‘Flippo’ (1998), “Performance appraisal is the systematic

periodic and an impartial rating of an employees excellence in matters

pertaining to his present job and his potential for a better job”

2 According to ‘C. Higel’ (1973), “The performance appraisal is the purpose

of evaluating the performance and qualification of the employees in terms of

the requirement of the job for which he is employed, for the purposes of

administration including placement, selection for promotion, providing

financial rewards and other actions which require differential treatment among

the members of a group as distinguished from action affecting all members

equally”.

3 According to ‘N.K. Rowland’ (1970), defines “performance appraisal is the

process of assessing the performance and progress of an employee or of a

group of employees on a given job and his potential for future development.”

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METHODS OF PERFORMANCE APPRAISAL

There are several methods and techniques used for evaluating employee

performance. These may be classified into two broad categories as stated by

C.B.Gupta (1998)

1. Traditional methods

2. Modern methods

TRADITIONAL METHODS

“Traditional method” envisages the following: -

1. CONFIDENTIAL REPORT

A confidential report is a report prepared by the employee’s immediate

superior. It covers the strength and weakness, main achievements and failure,

personality and behavior of the employee. It is descriptive appraisal used for

promotions and transfers of employees.

2. FREE FORM OR ESSAY METHOD

Under this method, the evaluator writes a short easy on the employee’s

performance on the basis of overall impression. The description is expected to

be a factual and as concrete as possible. An essay can provide a good deal of

information about the employee especially if the evaluator gives examples of

each one of his judgment.

3. STRAIGHT RANKING METHOD

In this technique, the evaluator assigns relative ranks to all the

employees in the same work unit doing the same job. Employees are ranked

from the best to the poorest on the basis of overall performance. The relative

position of an employee is reflected in this numerical bank.

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4. PAIRED COMPARISON METHOD

Each employee is compared with all the others, in pair one at a time.

The number of times an employee is judged better than the others determine

his rank. Comparison is made based on overall performance. The number of

comparisons to be made can be decided based on the following:N (N-1)/2.

Where N is the number of person to be compared.

5. FORCED DISTRIBUTION METHOD

In this technique, the rate is required to distribute his rating in the form

of a normal frequency distribution. This method eliminates the rate bias of

central tendency. It helps to reduce bias involved in straight ranking and

paired comparison.

6. GRAPHIC RATINGS SCALE METHOD

The rater is given numeric scale indicating different degrees of a

particular trait. The rate is given a printed form for each employee to be rated.

The form contains several characteristics relating to the personality and

performance of employees. Intelligence, quality of work, leadership skills,

judgment etc are some of the characteristics. The rater records his judgment

on the employee’s trait on the scale. The numerical points given are added up,

to find out his overall performance standing in the group.

7. CHECK LIST

A checklist of statements that describe the characteristics and

performance of employee in his job. The rater checks to indicate if the

behavior of an employee is positive or negative to each statement. The

performance of an employee is rated on the basis of number of positive

checks.

8. CRITICAL INCIDENT METHOD

In this method supervisor keeps a written record of critical (either good

or bad) events and how different employees behaved during such events. The

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rating of an employee depends on his positive/negative behavior during these

events.

9. GROUP APPRAISAL METHOS

Under this method, a group of evaluators assess the employees. This

group consists of the immediate supervisor of the employee, other supervisor

having close contact with the employee’s work, head of the department and a

personnel expert. The group determines the standards of performance for the

job, measures actual performance and offer suggestions for improvement in

future.

10. FIELD REVIEW METHOD

In this method a training officer from the personnel department

interviews line supervisors to evaluate their respective subordinates, the

interview prepares in advance the questions to be asked. By answering these

questions the supervisors gives his opinion about the level of performance of

his subordinate, the subordinate work progress, his strength and weakness,

promotion potential etc. the evaluators takes detailed notes of the answers

which are then approved by the concerned supervisor. These are then placed in

the employee personnel service file.

MODERN METHODS

1. Appraisal by results MBO

This method has been evolved by “Peter Drucker”. MBO is

potentially a powerful philosophy of managing and an effective way for

operationalising the evaluation process.

MBO can be described as a “Process whereby the supervisor and

subordinate managers of an organization jointly identifies its common goals,

define each individuals major area of responsibility in terms of results

expected of him and use these measures as guides for operating the unit and

assessing the contributions of each of its members.

2. Assessment centre method

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The assessment centre concept was initially applied to military

situations by Simoniet in the German Army in the1930 and the war office

selection board of the British Army in the year 1960s. The purpose of this

method and is to test candidate in a social situation. Assessments are made to

determine employee potential for purpose of promotion.

3. 360 degree performance appraisal

The appraisal may be any person who thorough knowledge about the

job has done by contents to be appraised. Standards of contents and who

observes the employee while performing a job. The 360 degree feedback is

understood as systematic collection of performance data on an individual or

group, derived from a number of stakeholders-the stakeholders being the

immediate supervisors, team members, customers, peers and self.

FACTORS AFFECTING PERFORMANCE APPRAISAL

According to Chakraborthy (1978) performance appraisal should be done with

caution. It is always advisable to make a preliminary survey of the following

constraints within which the employees of an organization are working.

1. Environmental constraints.

These are several environmental constraints, which may outside the control of

worker and to ignore this fact in judging his performance would be unjust. For

example. The quality of raw material in an organization may deteriorate over a period

or the machinery may break down unexpectedly. As a result, both productivity and

quality may suffer. But if selection of materials and maintenance of machinery are

done at higher levels in the organization the performance appraisal of the worker

should not be affected.

2. Organizational leadership

The style of the top leadership of an organization should also be looked into.

It is nature of leadership at the top, which determines largely the loyalty and

commitment of employees to the goals of an organization for better performance.

Employees at every level become highly performance conscious. Performance

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appraisal under such conditions is liked by everybody but in opposite conditions it is

considered as an imposition.

3. Interdependence of sub-systems

Since every organization is a big system composed of a number of

interdependent sub-systems, the success or failure of any one sub-system has got to be

interpreted in the context of all other sub-systems to which it is related. For example,

the sub-standard output of the production department may be due to the poor quality

of purchases made by the purchasing Department or the trouble may be at some

higher level sub-systems where planning for the production and purchase departments

has been done.

It is precisely because of this interdependence of sub-systems that suggestion

is often made to start performance appraisal from the apex. This leads to more

systematic and logical cause-and-effect tracing of performance at all levels within the

organization.

4. Organizational structure

Initiative, drive and innovation thrive best in a flexible structure. These

qualities do not receive encouragement in a rigid structure. This is because in this

type of structure the authority to approve innovation is often place several levels

above the people who innovate. This makes the proposal pass from person to person

and robs the information reaching the ultimate decision-makers of much of its logic

and understanding. What is needed is a direct relationship between the doer and

approver. No matter how strategically wise or strong a boxer is if he has to call New

Delhi to clear each punch during his fight in Udaipur, he is doomed. In rigid

structures, ponderous planning and controls make people give up innovating and

become resigned and bitter. Rather than beg for the acceptance of their innovative

ideas they take their ideas and creativity home and become dead wood at work

Managers commit mistakes while evaluating employees and their

performance. Biases and judgment errors of various kinds may spoil the performance

appraisal process. Bias here refers to inaccurate distortion of a measurement. These

are:

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First Impression (primacy effect): Raters form an overall impression about the ratee

on the basis of some particluar characteristics of the ratee identified by them. The

identified qualities and features may not provide adequate base for appraisal.

1. Halo Effect: The individual’s performance is completely appraised on the

basis of a perceived positive quality, feature or trait. In other words this is the

tendency to rate a man uniformly high or low in other traits if he is extra-

ordinarily high or low in one particular trait. If a worker has few absences, his

supervisor might give him a high rating in all other areas of work.

2. Horn Effect: The individual’s performance is completely appraised on the

basis of a negative quality or feature perceived. This results in an overall lower

rating than may be warranted. “He is not formally dressed up in the office. He

may be casual at work too!”.

3. Excessive Stiffness or Lenience: Depending upon the raters own standards,

values and physical and mental makeup at the time of appraisal, ratees may be

rated very strictly or leniently. Some of the managers are likely to take the line

of least resistance and rate people high, whereas others, by nature, believe in

the tyranny of exact assessment, considering more particularly the drawbacks

of the individual and thus making the assessment excessively severe. The

leniency error can render a system ineffective. If everyone is to be rated high,

the system has not done anything to differentiate among the employees.

4. Central Tendency: Appraisers rate all employees as average performers. That

is, it is an attitude to rate people as neither high nor low and follow the middle

path. For example, a professor, with a view to play it safe, might give a class

grade near the equal to B, regardless of the differences in individual

performances

5. Personal Biases: The way a supervisor feels about each of the individuals

working under him - whether he likes or dislikes them - as a tremendous effect

on the rating of their performances. Personal Bias can stem from various

sources as a result of information obtained from colleagues, considerations of

faith and thinking, social and family background and so on.

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6. Spillover Effect: The present performance is evaluated much on the basis of

past performance. “The person who was a good performer in distant past is

assured to be okay at present also”.

7. Recency Effect: Rating is influenced by the most recent behaviour ignoring

the commonly demonstrated behaviours during the entire appraisal period.

Therefore while appraising performances, all the above biases should be avoided.

PERFROMANCE APPRAISAL IN PRAVEEN CHEM INDUSTRY

Performance Appraisal is not an important or easy management task and it

should be an once a easy management task and it should be an once a year event. The

reason they conduct Performance Appraisal in the first place in that they believe in

accomplishing two things.

1. Help employees to understand the quality of their current performance and

identify what they must to do to improve it.

2. Motivate employees to improve their performance.

Effective performance Appraisal has 3 basic components.

1 Planning (performance)

2 Managing (performance)

3 Appraising (performance)

1. PERFORMANCE PLANNING

It is the process of identifying desired performance and gaining

employees commitments to perform the organization expectations.

Performance planning clearly identifies the expected results as well as

the behavior and skills which are expected to demonstrate performance planning

clearly identifies the expected results as well as the behaviour and skill which are

expected to demonstrate, provide a specific action plan and aimed at a clear target.

2. PERFORMANCE MANAGING

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This is daily process of working towards the performance expectations

established in the planning phase together manager and employee review the

employee’s performance on a periodic basis.

3. PERFORMANCE APPRAISAL

It is both the beginning and the end point of performance management.

The analysis of past performance provides the basis for planning next years

expectations and at the same time it “close the loop” of the current cycle.

During this, employees come to know where they stand and what is expected of

them and what they need to achieve in the next performance period. The design also

come to know what results it can expect from their employees and what resource like

training and development, and counseling are needed to help than to achieve the goal.

1.1. INDUSTRY PROFILE

Though the beginning of detergent industry is not shrouded in the veils of

history as were the start of soap industry, it is nevertheless not easy to find when the

detergent industry, as such, came into existence. An important issue is to decide

exactly what is being termed as a synthetic detergent as the term itself leads to

confusion. In the United States of America, the word surfactant or syndet is being

used, while in Europe the term 'tensile' (for tensio-active material) came into fashion.

The chemistry of soap manufacturing remain primarily the same until the

year 1916, when the first synthetic detergent was developed in Germany in response

to the shortage of fats for making soaps during the World War I. Commonly known as

detergents today, synthetic detergents are non-soap washing and cleaning

products, which are put together chemically or synthesized to produce a variety of raw

materials. The invention of detergents was also driven by the need for

a cleaning agent, which, unlike soap, would not combine with the mineral salts

in water to form an insoluble substance (soap curd) on the fabric.

The earliest developed synthetic detergents were short-chain alkyl napthalene

sulphonates that were later found to be only somewhat good detergents

and so their properties were improved. Those detergents are still used today

as wetting agents. During 1920's and 30's, straight chain alcohols were sulphonated

to produce straight chain detergents. During the same time long chain alkyl

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and aryl sulphonates with benzene were developed as the aromatic nucleus

(the alkyl portion was derived from kerosene).

By the end of Second World War, alkyl aryl sulphonates swamped the

detergent market over alcohol sulphates that later proved to be highly useful in the

shampoo industry.

The major uses of earlier detergents were in hand dishwashing and fine fabric

laundering. In 1946, came an important breakthrough in the development of

detergents for all-purpose laundry applications, when the first "built" detergent

(containing a builder/surfactant combination) was offered in the U.S. Surfactant is a

basic cleaning agent of a detergent product, while a builder helps a surfactant to

function more effectively. Phosphate compounds were used as builders in these

detergents, which significantly improved their performance, thereby making them

idealforcleaningheavilysoiledlaundry.

Between 1950 and 1965, more than half of the detergents were based on the

formula of a propylene tetramer conjugated to benzene (PT benzene), but later they

were blamed for a rise in eutrophication in lakes and streams as they contain

phosphates (from Sodium triphosphate). Although the problem has not been

completely resolved in some cases, in some countries there has been an agreement for

reducing the uses of phosphates however in countries where it is not a big issue no

such action has been taken. The problem was set down to the branched chain

formation of PT benzene that resulted in the bacteria's' inability to degrade them.

Straight-chain alcohols are degradable, hence the steps were taken to form and

produce a linear alkyl benzene molecule.

By the year 1953, the sale of detergents in US had surpassed those of soap.

During that time, the detergents have all but replaced soap-based products that were

used for laundering, dishwashing and household cleaning. Alone or in combination

with soaps, the use of detergents started in many of the bars and liquids used for

personal cleaning.

Since those early discoveries in the chemistry and technique of detergents and

builders, developments have been continued that focuses on achieving more efficient

and easy to use detergent products. Now the manufacturers give an important

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consideration to safety for consumers and the environment as well. Given below is a

brief summary of important inventions over the years of the history of detergents.

1950s

Liquid laundry, hand dishwashing and all-purpose cleaning products

Automatic dishwasher powders

Detergent with oxygen bleach

Fabric softeners (rinse-cycle added)

1960s

Laundry powders with enzymes

Prewash soil and stain removers

Enzyme presoaks

1970s

Fabric softeners (sheets and wash-cycle added)

Multifunctional products (e.g., detergent with fabric softener)

Liquid hand soaps

1980s

Automatic dishwasher liquids

Detergents for cooler water washing

Concentrated laundry powders

1990s

Ultra (super concentrated) powder and liquid detergents

Automatic dishwasher gels

Ultra fabric softeners

Laundry and cleaning product refills

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1.2 COMPANY PROFILE

Power Soaps is a household name in the detergent and bathing soap

segment in South India. The brand stands proud as a triumph of entrepreneurial spirit,

vision and a customer-centric business.

A Dream Unfolds Started in the 1970's, Power Soaps was established as the

Gold Company and operated with a single unit at Kodai Road, Dindigul Dist,

Tamilnadu. It was founded by Krishna Nadar, a visionary entrepreneur who believed

that there existed a great demand for quality yet affordable detergent soaps. His sharp

business acumen and astute strategies paved the way for the rapid growth of the

brand. He built the business on the strong foundation of ethics and building enduring

customer relationships

Moving to The Next Level

After R Krishnan Nadar's regime, the mantle was taken over by his son

K.Dhanapal who took it to newer heights and the company expanded. In 1998,

detergent powder was introduced and this was an extremely successful venture

Three more manufacturing units Power Soaps Limited at Puducherry, Abirami

Chemicals Pondicherry and Praveen Chem Industry at Karaikal were added to

meet the increasing demand for Power products.

Taking on a New Identity

The next step was to consolidate all brands under one umbrella and this was

done through creating the Power Soaps identity. This created a leap in brand value

and image. Later, Power exited the soft drink and water business to sharpen the focus

on detergents and personal care

Powering Today’s World

Power Soaps with its huge bouquet of detergent and personal care brands has

a huge presence across South India and exports to countries like the Gulf. The quality

products have been appreciated by customers making it a household name. The

brands are backed by a strong manufacturing infrastructure with plants in

Sembiapalayam. Gummudipoondi, Periyapalayan, Silvassa and Karaikal.

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STATE OF ART INFRASTRUCTURE

Power Soaps has always stayed at the forefront of technology, innovation and

quality built on a backbone of a strong infrastructure. State-of-art technology and

equipment are the norm at every plant. Quality processes and the Best Practices

ensure that what reaches each customer is world class quality at an affordable cost.

The Company have their manufacturing plants at Sembiapalayam.

Gummudipoondi, Periyapalayan, Silvassa and Karaikal.

This allows us to control the quality and maintain the consistency of products.

The plants are manned by dedicated and efficient technical personnel with domain

expertise who keep operations moving smoothly.

RESEARCH AND DEVELOPMENT

R&D is an ongoing initiative and we have a full-fledged centre. A

team works consistently to innovate and add value to the product line. The

products are driven by innovation and technology and it's this trait that endears

us to our customers and helps us deliver products that are a cut above the rest.

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Quality Policy / Processes

Power Soaps Limited has been certified with ISO 9001: 2000 by the

International Certification Services for both manufacturing and supplying of detergent

cakes, Powders, Toilet soaps and shampoos.

Quality control policies to give the customers quality Products.The adherence

to ethical business practices and qualitative approach has given us an edge over the

other leading organizations. Right from the initial stage of procurement of raw

material till the final delivery of the consignment, to undertake stringent quality

control measures.

Transport

Company has its own Goods vehicle, which is used to transport finished

goods to customer’s premises. Praveen Chem Industry being well connected with

cities and National Highways and expressways; transportation of raw materials is

easy.

Company Name : Praveen Chem Industry

Country : India

City : Karaikal

Address : Praveen Chem Industry

Keezhavanjore village,

Nagore Post ,Karailal-611002

Managing Director : R.Siddha Nadhan

Nature of Activity : Power and tyko Detergent soap,

and detergent powder

Established year : 1998

No of workers : 523

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Financial Assistance : Working Capital & term Loan from Banks.

Sales Turnover for the

LastThree years : 2008-09 Rs.6.5 crores,

2009-10 Rs.7.75 Crores and

2010-2011 Rs 10.75 Crores.

Marketing Network : A well Eshtablished Team of Executive

Personnel Marketing Products in TamilNadu, Kerala and part of AndhraPradesh ,Bangalore ,Mumbai, Gujarat,Andrapradesh, Maharastra

Staff Welfare Measure : Provide Subsized foods,Medical Facility and

Hygienic Water

The company contains the machine as

• Refiners

• Cutters

• Stampers and

• Wrappers

• Bleaching

• Drying

• Finishing and Packing equipment

• Crutchers

• Atomisers

• Plodders

• Roll Mills

• Binding

  Management Certification : ISO 9001:2000

Product Profile

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Raw Materials

Raw materials used for manufacturing Detergent soap are as under:

Washing soda

Acid Sullary

China clay

Dolomite

Sodium Silicate

Caustic Soda

Sodia acid

Sodium sulphate

Process Section

The manufacturing of detergents is a complex process that involves different

activities and processes. The size and complexity of these processes and activities

may range from small manufacturing plants that employ a small number of people to

those with hundreds and thousands of workers. products may range from all purpose

products to that are used for specific application or requirement.

Detergent Bars

Detergent Production Equipment

The detergent bar machinery makes solid washing blocks which are used

for hand washing clothes in cold water, where there are high concentrations of

minerals in the water. These regions are typically South and Central America and

Central East Africa

The equipment is visually similar to toilet soap machinery, but the design and

components are much stronger because detergents are much harder.

We make the following Detergent Bar Machinery :18

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Detergent Bar Mixers

Detergent Bar Roll Mills

Detergent Bar Plodders

Detergent Bar Cutters

Detergent Bar Stampers

Detergent Powders

Detergent Powder comes in two varieties, dense and light. Dense powders

Weigh over 500 grams per litre and are made by dry mixing ingredients together.

Light powders are made by mixing a detergent slurry, then spraying droplets of slurry

into a rising column of hot air, which dries them to powder. We make Dense Powder

production equipment.

We make the following Detergent Powder Machinery

Batch Weighers

Screw Conveyors

Production Platforms

Batch Mixers

Mixed Powder Hoppers

Bagging and Sachet Equipment

Finishing

The final stage of soap manufacturing process, finishing stage involves

mixing of additives, such as colors, preservatives, and perfume into soap,

which is then shaped into bars for sale

The conversion of soap noodles into finished product. This usually

means adding perfume, colour and special ingredients. The ingredients are

mechanically refined into the soap noodles, then extruded and stamped into

toilet soap tablets.

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Finishing Equipment

Mixers

Simplex Plodders

Duplex Vacuum Plodders

Triplex Vacuum Plodders

Twin Screw Plodders

Refiners

Three Roll Mills

Electric Water Chillers

Elevating Conveyors

High Speed Billet Cutters

Single Blade Cutters

Chain Type Cutters

Bar Soap Roller Printers

Hotel Bar Roller Printers

Billet Feed Conveyors

Automatic Soap Stampers

Semi – Auto Stampers

Manual Stampers

Soap Packaging Process

The final stage of the detergents and soap manufacturing process is the

packaging. In this stage, the finished product is packed for final supply to consumer.

During the packaging stage, bar soaps are either wrapped or cartooned in single packs

or multipacks. Detergents, including household cleaners, dishwashing cleansers and

laundry cleansers are packaged in cartons, bottles, pouches, bags or cans.20

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Packaging is one of most important steps in soaps and detergents

manufacturing and hence should be given prime consideration by soap and detergents

manufacturers. Some of the important benefits of soap packaging include

Enhances the marketability of product

Improves the appearance and attractiveness of product

Increases the shelf appeal of product

Increases the shelf life of product

Reduces the waste during production

Makes the product easy and convenient to use

The product can be packed in different sizes to meet the varying demands of

consumers

Soap manufacturers use different types of packaging products and solutions to

make their products easy and convenient to use and to maximize the performance of

product.

Some of the soap packaging options that are used by companies in the soap

and detergent industry are -

Small sachets - for offering products in very small quantity for one time use.

Generally powder detergents and washing gels are offer in sachets.

Cartoons - Soaps and detergents are offered in cartoons for bulk supply.

Poly packs - Soaps and detergents are offered in poly packs of different sizes

to meet the varying demands of consumers.

Plastic bottles - Generally liquid detergents specialty spray cleansers are

packaged in plastic bottles to make their usage convenient and effective.

Tubes - Tubes are most widely used for packaging personal care and cosmetic

products.

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Paper wrap - Soap bars are generally wrapped or cartooned in single packs or

multi packs for the convenience of users.

Soap Packaging Machines

A variety of packaging machines is used by the soap and detergent industry

for superior and convenient packaging of the products. Some of the most common

packaging machines used in soap and detergent industry are -

Soap wrapping machine

Soap and detergent filling machine

Sealing machine

Cutting machine

Horizontal form fill-sealing machine

Saponification section

Roller machine

Stamping machine

Mixer machine

Rotary sealing machine

“Praveen Chem Industry “ Manufactures the following products as

Home Care, Personal care, Soaps and Detergents with different brands.

Home Care:

1. Detergent Cake

Triple Power

Active Power

Hi Power

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Power Jumbo

Tyko

Triple Power(Blue)

Give your clothes lime freshness with this detergent cake that strips the dirt

and leaves your clothes clean and fresh. Available in convenient sizes of 150 gms,

300 gms

Active Power (Blue,Yellow)

Get the stain fighters in this detergent work for you and make your life easier.

A great wash with the least effort. Available in convenient size 200 gms.

Blue skies and fresh clean spring days are back with this detergent. The

intensive citric cleansing agent leaves you feeling like you are wearing new clothes

everyday, Available in convenient sizes of 125gms, 200 gms, 250 gms, 300 gms.

Hi Power(Blue, Yellow, Pink)

The superb lathering formula gives your clothes the total clean that you are

looking for. Keeping your whites stunning and your coloured clothes dazzling.

Available in convenient sizes of 125gms, 150 gms, and 250 gms.

The rich lather penetrates into the pores of the fabric and brings out all the

dirt. Great for whites and coloured clothes as well.Available in convenient sizes of

125gms, 150 gms, and 250 gms.

The unique lathering formula help you give your clothes a clean wash quickly

and easily. Perfect to keep your whites looking sparkling white and coloured clothes

bright. Available in convenient sizes of 125gms, 150 gms, and 250 gms.

Power Jumbo(Blue,Yellow,Pink)

Power Jumbo Blue has strong stain fighting agents that penetrate well into the

fabric and eliminate dirt and grime with powerful action. This leaves your

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clotheslooking fresh with a pleasant fragrance. Keeps colours bright..Available in

convenient sizes of 125gms, 200 gms, 250 gms, 300 gms.

Power Jumbo Yellow has a sunny citrus cleansing agent that works its way

deep into fabrics and cleans them. Keeps colours bright and leaves a lingering

fragrance on clothes. Available in convenient sizes of 125gms, 200 gms, 250 gms,

300 gms

Power Jumbo Pink is the colour of perfect health. The ideal way to keep your

clothes free from germs and dirt. Leaves clothes with a plesant fragrance.. Available

in convenient sizes of 125gms, 200 gms, 250 gms, 300 gms

Tyko(Blue,Yellow,Pink)

Blue skies and fresh clean spring days are back with this detergent. The

intensive citric cleansing agent leaves you feeling like you are wearing new clothes

everyday, Available in convenient sizes of 125gms, 200 gms, 250 gms, 300 gms

Bright yellow symbolises the sunny citrus cleansing agent that deep cleans

fabrics and keeps colours true. Leaving a lingering fragrance on clothes. Available in

convenient sizes of 125gms, 200 gms, 250 gms, 300 gms

Pink is the colour of perfect health. Keep your clothes free from germs and

dirt with this detergent that helps you stay clean and hygienic. Available in convenient

sizes of 125gms, 200 gms, 250 gms, 300 gms

2. Detergent Powder

Triple power

Active Power

Tyko

Triple Power

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The Triple Power range of detergents and powders are formulated with lime

which is a powerful deep cleanser. It cleans the dirt besides leaving clothes fragrant.

Triple Power Detergent Powder

Unleash the awesome power of fresh lime to give your clothes a sparkling clean

wash. This detergent leaves your clothes fragrant and super clean. Priced perfectly to

suit your household budget. Available in 20gm sachets, 200 gms, 250 gms, 500 gms

and 1 kg packs.

Active Power

Active Power Detergent Powder

Active Power is packed with stain fighters that fight even tough dirt and

grime. These penetrate deep into the fabric to release even tiny dirt particles leaving

clothes wonderfully clean.

Unleash the awesome power of fresh lime to give your clothes a sparkling

clean wash. This detergent leaves your clothes fragrant and super clean. Priced

perfectly to suit your household budget. Available in 20gm sachets, 200 gms, 250

gms, 500 gms and 1 kg packs.

Tyko

Tyko Power Detergent Powder

The convenience of an easy wash in every scoop of washing powder. The

intensive citrus cleansing agent simply blasts dirt to bits and leaves your whites

sparkling white and keeps colours true. With a wonderfully fresh fragrance. Available

in 20gm, 200gm, 500gm and 1kg packs.

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CHAPTER – II

REVIEW OF LITERATURE

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2.1 Review Of Literature

Denhardt (1991) defines performance appraisal as a specific evaluation with

respect to an individual’s progress in completing specified tasks.

Devries, Morrison, Shullman and Gerlach (1981) define performance

appraisal as a process by which an organization measures and evaluates an individual

employee’s behavior and accomplishments for a finite period.

Moulder (2001) states that performance appraisals are valued for defining

expectations and measuring the extent to which expectations are met. She goes on to

state that appraisals can make clear to employees where they are having success and

where they need to improve performance.

Moulder indicates that appraisals are useful in setting goals and in fostering

improved communications among work groups and between employees and

supervisors.

Before the 1960’s, performance evaluations were designed primarily as tools

for the organization to use in controlling employees (Eichel and Bender, 1981).

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Eichel and Bender go on to state that past performance was used to guide or

justify management’s actions in dealing with the employee. At the time, according to

these authors, performance appraisal provided the basis for salary, retention,

discharge, or promotional decisions.

Over the past quarter century, the purpose of performance appraisal has shifted

from tools supporting the activities of management to an increasing trend towards

personnel development (Eichel and Bender, 1984).

Vroom (1990) states that formal performance appraisal plans can be designed

to meet the following key needs:

(a) The organization;

(b) The supervisor; and

(c) The employee.

He stresses the need for effective evaluation as it can effectively serve these

critical areas.

ICMA (2005) states that almost all employees are eager to know how well

they are doing in their jobs, but many dread the meetings in which their performance

is to be discussed.

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CHAPTER - III

RESEARCH DESIGN

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RESEARCH METHODOLOGY

According to Clifford woody research comprises of defining and

redefining problems, formulating hypothesis suggested solutions, collecting, organizing and

evaluating data, making deductions and reaching conclusions at last carefully testing

the conclusions to determine whether they fit the formulating hypothesis.

RESEARCH DESIGN

The research conducted is basically descriptive in nature in sense it attempts to

portray accurately the characteristics of a particular individual’s situation or a group.

3.1SCOPE OF THE STUDY

This study is useful to know the strength and weakness of appraisal.

Therefore, the management can update the system with necessary changes.This study

helps in giving suggestion to improve the efficiency of the organization.

3.2 NEED OF THE STUDY

The management was in the position to know whether the existing

performance appraisal system is effective or not.

To measure the satisfaction level of the employees.

To get suggestions from the employees for further improvement in existing

performance appraisal system.

To contribute to the growth of the organization.

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3.3 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES

Measuring the effectiveness of the existing performance appraisal system.

SECONDARY OBJECTIVES

To Study the performance appraisal system in the Praveen Chem Industry

To find out the satisfactory level of the employer about performance appraisal

The ways and means to improve the effectiveness of the existing performance appraisal system.

3.4 SAMPLING METHOD

Simple random sampling was used for choosing the sample

3.5 SAMPLE SIZE

To collect information from all respondents is difficult so the investigator has

collected 52 samples.

3.6 SOURCE OF DATA COLLECTION

The data collected during the project comprises of

PRIMARY DATA

SECONDARY DATA

PRIMARY DATA

Primary data are original sources from which the researcher directly collects

data. The main source of primary was collected through questionnaire.

SECONDARY DATA

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The secondary data are the sources containing data which have been collected

and compiled for another purpose.

External data

Website

Books

Journals

3.7 TOOLS USED FOR DATA COLLECTION

Percentage analysis

Weighted average

Chi square

3.7.1PERCENTAGE ANALYSIS

No of respondent

Percentage = ×100

Total no of respondents

3.7.2 WEIGH TED AVERAGE VALUE

∑WX

Weighted average value =

∑W

W=No of respondents

X=Value (1, 2, 3, 4…..)

W=Total respondents

3.7.3 CHI SQUARE

∑ (O-E) 2

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X2 =

∑E

Oij=Observed frequency

Eij= Expected frequency

Row total ×Column total

Eij=

Grand total

3.8 PERIOD OF STUDY

The period of the study is from 1st January to 30th April . During this period the

researcher has collected the necessary primary data and other relevant information

needed to carry out the study.

3.9 AREA OF THE STUDY

The study was conducted among the employees of Praveen Chem Industry

in Karaikal.

3.10 LIMITATIONS OF THE STUDY

1. The respondent attitude did not allow me to get their true feelings.

2. Most of the respondent feared to give their name.

3. Most of the employees were busy with their tight work and they don’t want to

be disturbed.

4. Employees are very limited and duration is limited.

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CHAPTER – IV

ANALYSIS & INTERPRETATION

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4. ANALYSIS AND INTERPRETATIONS

4.1Percentage analysis

Percentage analysis is the method to represent raw streams of data as a percentage for

better understanding of collected data.

No of respondent

Percentage = ×100

Total no of respondents

Table: 4.1.1

Age group of the worker

SL.NO Age No of Respondents Percentage

1 20-30 8 15.3

2 30-40 10 19.2

3 40-50 13 25

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4 50-60 15 28.3

5 60-70 6 11.5

Total 52 100

Source: Primary data

Figure: 4.1.1

Age group of the worker

Inference

From the above table 15.3% of employees fall under the age group of 20-30

years. About 19.2% of employees are under the age group of 30-40 years. 25% of

employees are comes under 40-50 years and 28.3% of employees are comes under 50-

60 years and 11.5% of employees are above 60-70 years of age.

Table: 4.1.2

Gender group of the workers

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SL.NO Gender No of respondents Percentage

1 Male 35 67

2 Female 17 33

Total 52 100

Source: Primary data

Figure: 4.1.2

Gender group of the workers

Inference

The above table shows that 67% of employees are Male 33% of employees are

female.

Table: 4.1.3

Educational qualification of the workers

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SL.NOEducational

qualificationNo of respondents Percentage

1 SSLC 17 32.6

2 HSC 20 38.4

4 Graduate 15 28.8

Total 52 100

Source: Primary data

Figure: 4.1.3

Educational qualification of the workers

Source: Primary data

Inference

The above table reveals clear that about 32.6% of the employees have SSLC

qualification and 38.4% of employees have HSC qualification and 28.8% have

completed their Graduate course.

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Table: 4.1. 4

Experience of the workers

SL.NO Experience No of respondents Percentage

1 Below 5 years 16 30.7

2 5-10 17 32.6

3 10-16 19 36.5

Total 52 100

Source: Primary data

Figure: 4.1.4

Experience of the workers Experience of the workers

Inference

From the above table we infer that 30.7 % of the employees have below 5

years of experience and 32.6 % of the employees have experience between 5-10

years, 36.5 % of the employees have the experience between 10-16 years

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Table: 4.1.5

SL.NO Income No of respondents Percentage

1 3000&above 14 27

2 5000&above 15 29

3 10000&above 23 44

Total 52 100

Income level of the workers

Source: Primary data

Figure: 4.1.5

Income level of the workers

Inference

The above table denotes 27% of employees earns above rupees 3000 as a monthly

income. 29% of employees earn above 6000 rupees and 44% of employees earn above

10000 rupees as salary

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Ways and Means to improve the Existing performance

Appraisal system

Table 4.1.6

The table shows the way in which the performance appraisal system helps in the future

growth

Way it helps

PAS helps for future growth

No of Respondents % value

Get Increments 25 49

Improve the Quality of work

12 23

Motivates for future growth 14 26

PAS does not work 1 2

Total 52 100

Figure 4.1.6

Helps in the future growth

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Inference

Among 52% of the employees, 49 % of employees said that performance

appraisal helps them to get increments. 26 % said that the performance appraisal help

for the future growth 23 %of employees said that improve the quality of work .2% of

employee said that performance appraisal does not help for the future growth

Table 4.1.7

The table shows the way in which the training program helps

Way it helps

Training

program helps

Once in a year

% value

Twice in a year

% value

Thrice in a year

% valueMore than thrice in a

year% value

Helps to increase the productivity

15 28.8 20 38.5 15 28.5 17 32.7

Helps to increase the quality

35 67.4 20 38.5 17 32.7 20 38.7

Helps to improve the health and safety

2 3.8 12 23 20 38.5 15 28.8

Grand total 52 100 52 100 52 100 52 100

Figure 4.1.742

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Training program helps

Among 52% of employees 67.4% of employees said that the training is

conducted once in a year and it helps to increase the quality .38.5% of employees said

that the training is conducted twice a year and it helps increase the productivity and it

helps to increase the quality.38.5 % of employees said that the training s conducted

thrice a year and it helps for improve the health and safety.37.8 % employees said

that the training is conducted more than thrice a year and it helps to increase the

quality.

Table 4.1.8

The table shows the Self Improvement Appraisal system

Improvement After PAS No of Respondents %value

yes 47 90.4

No 5 9.6

Grand total 52 100

Figure 4.1.8

The Self Improvement Appraisal system

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Inference

90.4 % of employees tell that they had improved themselves after the appraisal and

9.6 % of has not improved in program

Table 4.1.9

The Table shows the Parameters included in the performance appraisal system

Parameters No of Respondents % Value

Dependability 40 76.9

Interpersonal skill 12 23.1

Grand Total 52 100

Figure 4.1.8

The Parameters included in the performance appraisal system

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Inference

79.9% said that dependability 23.1 % said that the parameter interpersonal

Skill is to be included in the appraisal form

Table 4.1.9

The table shows the level of communication and transparency

No of respondents

Communication

Transparency

Yes % Value Partly % Value No % Value

Yes 46 88.5 17 32.6 30 57.6

No 6 11.5 35 67.3 22 42.3

Grand Total 52 100 52 100 52 100

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Figure 4.1.9

The level of communication and transparency

Inference

88.5 % said that the system is transparanent and there is proper

communication regarding the negative remarks.The company has to increase the level

of commnunication regarding the negative marks . 32.6 % said that the system is

partly transparent and 57.6% said that not transparent and there is no communication

regarding the negative remarks.

Table 4.1.10

The table shows the Level of changes After the Negative Remarks Quoted

Level of Changes No. Of. Respondents % ValueYes 41 78.8

May be 6 11.6

No 5 9.6

Grand total 52 100

Figure 4.1.10

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The Level of changes After the Negative Remarks Quoted

Inference

78.8 % said yes and they have changed themselves after telling their negative

remarks. The company is responsible to make changes in the employees after the

appraisal. Only 11.6% of the employees said that may be they would not change

themselves after the negative remarks. 9.6 % of employees said that no changes .

Table 4.1.11

The table shows the clarification about the Negative marks

Parameters Benefit/Chance

Clarification Yes % Value No % Value

Yes 48 92.3 2 40

N0 4 7.7 3 60

Total Value 52 100 5 100

Figure 4.1.11

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The clarification about the Negative marks

Inference

92.3% said that they had got chance for further clarification and they got

benefit by it. 60% Employees said that does’nt have any benefit or clarification .The

organization has to tell about what are benefits they will get after appraisal, so that the

level of employees can increased.

Table 4.1.12

The table shows Matching the related parameters and

Measuring the satisfaction level using simple percentage method

Parameters

Name of the

parameter

Yes

%

No

%

May be

%

I

Training Program 40 60 -

Future Growth 94 6 -

II

Improvement 90 10 -

Try to Change 78.8 11.6 9.6

III

Transparency 88.5 11.5 -

Further

Clarification

92.3 7.7 -

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Figure 4.1.12

Measuring the satisfaction level using simple percentage method

Approximately more than 90% of the employees are satisfied with the above-

mentioned parameters. Around 5% of the employees are highly satisfied for only few

parameters. Around 4% of the employees are dissatisfied for few parameters

mentioned above. Only 3 of the highly dissatisfied for the parameter company

policies.

4.2 WEIGHTED AVERAGE

An average in which each quantity to be averaged is assigned a

weight. These weightings determine the relative importance of each quantity on

the average. Weightings are the equivalent of having that many like items with

the same value involved in the average.

∑WX

Weighted average value =

∑W

W=No of respondents

X=Value (1, 2, 3, 4…..)

W=Total respondents

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Table: 4.2.1

Measurement towards the Punctuality and Discipline

Particulars HS S N DS HDS WA

Measurement through

Proper Record Keeping

27 10 10 1 4 4.05

Nature of the Appraiser 10 10 7 5 20 2.71

It help for the future

growth

10 17 13 4 8 3.32

HS- Heighly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS-

Highly Dissatified

WA: Weighted Average

Source: Primary data

Figure: 4.2.1

Measurement towards the Punctuality and Discipline

Inference

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In the above table infers that 4.05 % of employees are highly satisfied by it

helps for the future growth and 3.32 % of employees are satisfied in measurement

through proper record keeping 2.71 % highly dissatisfied in the nature of the

appraiser.

Table: 4.2.2

Measurement of job knowledge, Quality of work

Particulars HS S N DS HDS WAHandling of Work Independentily

2 10 20 13 7 2.75

Achievements based on org. goal

25 16 3 6 2 4.07

It help for the future growth

10 25 5 4 8 3.48

Personal interest contributing to org. goal

2 7 10 4 29 2.01

HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS- Highly Dissatified

WA: Weighted Average

Source: Primary data

Figure: 4.2.2

Measurement of job knowledge, Quality of work

Inference

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In the above table infers that 4.07 % of employees are highly satisfied in

achievements based on org goal and 3.48 are satisfied it helps for future growth 2.75

are neutral in handling of work independently 2.01 are highly dissatisfied personal

interest contributing to org goal.

Table: 4.2.3

Measurement of writing and oral abilities

Particulars HS S N DS HDS WA

Measurement through addressing the meetings

27 20 4 - 1 4.38

Proper record keeping 15 25 5 4 3 3.86

Nature of the Appraiser 5 6 9 15 17 2.36It help for the future growth 6 3 24 10 9 2.78

HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS- Highly

Dissatified

WA: Weighted Average

Source: Primary data

Figure: 4.2.3

Measurement of writing and oral abilities

Inference

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In the above table infers that 4.38 % of employees are highly satisfied in

measurement through addressing the meetings 3.86 are satisfied in proper record

keeping 3.78 are neutral for its future growth 2.36 are highly dissatisfied in nature

of the appraiser .

Table: 4.2.4

Measurement towards the learning and communication abilities

Particulars HS S N DS HDS WA

Coordination among the

employees10 5 17 9 11 2.88

Willingness to learn the job 10 19 2 10 11 3.21

Nature of the Appraiser 3 12 11 11 15 2.55

It help for the future growth 20 17 1 5 9 3.65

HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS-

Highly Dissatified

WA: Weighted Average

Source: Primary data

Figure 4.2.4

Measurement towards the learning and communication abilities

Inference

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In the above table infers that 3.65 % of employees are highly satisfied in helps

for future growth 3.21 are satisfied in willingness to learn the job 2.88 are neutral in

coordination among the employees 2.55 are highly dissatisfied in nature of the

appraiser .

Table: 4.2.5

Measurement of accepting and implementing change

Particulars HS S N DS HDS WA

Higher Authorities referrred 15 3 20 5 9 3.19

Taking immediate action 5 7 9 14 17 2.40

Proper record keeping 10 10 2 15 15 2.17

Referring the manual 2 16 19 5 10 2.90

It help for the future growth 20 16 6 7 3 3.82

Nature of the appraiser 15 19 6 2 10 3.59

HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS-

Highly Dissatified

WA: Weighted Average

Source: Primary data

Figure 4.2.5

Measurement of accepting and implementing change

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Inference

In the above table infers that 3.82 % of employees are highly satisfied in helps

for future growth 3.59 are satisfied in nature of the appraiser 3.19 are neutral in

Higher authorities reffered 2.90 dissatisfied in referring the manual and 2.71 and 2.40

highly dissatisfied in proper record keeping and taking immediate action .

Table: 4.2.6

Measurements of Absenteeism Rate

Particulars HS S N DS HDS WA

Report Timing 25 18 5 1 3 4.17

Proper record keeping 10 20 5 9 8 3.28

Nature of the appraiser 10 7 23 5 7 3.15

It help for the future growth 1 17 12 2 20 2.55

HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS-

Highly Dissatified

WA: Weighted Average

Source: Primary data

Figure 4.2.6

Measurements of Absenteeism Rate

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Inference

In the above table infers that 4.17 % of employees are highly satisfied in

proper timing 3.28 are satisfied in proper record keeping 3.15 are neutral in nature of

the appraiser 2.55 dissatisfied in helps for the future growth

Table: 4.2.7

Measurements of Flexibility

Particulars HS S N DS HDS WA

Proper record keeping 5 10 5 15 17 2.44

Nature of the appraiser 11 18 2 14 7 3.23

It help for the future growth 25 9 7 7 4 3.84

HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS-

Highly Dissatified

WA: Weighted Average

Source: Primary data

Figure 4.2.7

Measurements of Flexibility

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Inference

In the above table infers that 3.84 % of employees are highly satisfied for it

helps for future growth 3.23 are satisfied in nature of the appraiser 2.44 highly

dissatisfied in proper record keeping

Table 4.2.6

Measurement of Personal grooming

Particulars HS S N DS HDS WA

Measure the personality 27 22 - 1 2 4.36

Interest toward the job 10 11 10 11 10 3

Proper record keeping 11 5 9 10 17 2.67

It help for the future growth 17 20 6 7 2 3.82

Nature of the appraiser 12 8 15 10 7 3.30

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HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS-

Highly Dissatified

WA: Weighted Average

Source: Primary data

Figure 4.2.8

Measurement of Personal grooming

Inference

In the above table infers that 4.36 % of employees are highly satisfied to

measure the personality 3.82 are satisfied in helps for the future growth 3.30 neutrally

in nature of the appraiser 3 dissatisfied in interest towards the job 2.67 highly

dissatisfied in proper record .

Table 4.2.9

Measurement of company policies

Particulars HS S N DS HDS WA

Existing Measurement and

policies15 12 7 8 10 3.26

It help for the future growth 20 17 5 3 7 3.76

Nature of the appraiser 11 12 5 10 14 2.9258

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HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatified, HDS-

Highly Dissatified

WA: Weighted Average

Source: Primary data

Figure 4.2.9

Measurement of company policies

Inference

3.76 of employees are highly satisfied it helps for the future growth 3.26 are

existing measurement and policies 2.92 are dissatisfied it for the nature of the

appraiser

Table 4.2.10

Measurement of Computer Skills.

Particulars HS S N DS HDS WA

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Existing Measurement and

skills 12 15 10 7 8 3.30

It help for the future

growth 20 17 10 2 3 3.94

Nature of the appraiser 10 2 8 10 22 2.38

HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS-

Highly Dissatified

WA: Weighted Average

Source: Primary data

Figure 4.2.10

Measurement of Computer Skills.

Inference

In the above table infers that 3.94 % of employees are highly satisfied for it

helps for the future growth 3.30 satisfied among the existing measurement and

objectivity 2.38 highly dissatisfied among the nature of appraiser.

Table 4.2.11

Measurement of Guest Relation

Particulars HS S N DS HDS WA

Existing Measurement and 18 15 10 2 7 3.67

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objectivity

It help for the future

growth 20 20 9 2 1 4.07

Nature of the appraiser 15 4 15 13 5 3.21

HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS-

Highly Dissatified

WA: Weighted Average

Source: Primary data

Figure 4.2.11

Measurement of Guest Relation

Inference

In the above table infers that 4.07% of employees are highly satisfied for it

helps for the future growth 3.67satisfied among the existing measurement and

objectivity 3.21 neutraly satisfied among the nature of appraiser

Table: 4.2.12

Parameters to measuring the satisfaction level of employees using weighted

Average

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Particulars HS S N DS HDS WA

Write and oral 27 20 4 - 1 4.38

Job knowledge 25 16 3 6 2 4.07

Punctuality and

dicipline27 10 10 1 4 4.05

Absenteeism 25 18 5 1 3 4.17

Guest Relation 20 20 9 2 1 4.07

Personal Grooming 27 22 - 1 2 4.36

Implement change 20 16 6 7 3 3.82

Flexibility 19 19 3 7 4 3.80

Learn and

communication20 17 1 5 9 3.65

Company policies 20 17 5 3 7 3.76

HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS-

Highly Dissatified

WA: Weighted Average

Source: Primary data

Figure 4.2.12

Parameters to measuring the satisfaction level of employees using weighted

Average

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Inference

In the above table infers that 4.38 % of employees are highly satisfied in

writing and oral in performance appraisal system among the company (4.36) personal

grooming and (4.07) guest relation and (4.05) Punctuality and discipline and (4.07)

job knowledge are Satisfied by the appraisal system in their working organization ()

flexibility (3.80) company policies are neutral about their working organisation (3.82)

implement change are dissatisfied

4.3 CHI SQUARE TESTS

Chi square test is applied in statistics to test the goodness of fit to verify the distribution of observed data with assumed theoretical distribution.

∑ (O-E) 2

X2 =

∑E

Oij=Observed frequency

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Eij= Expected frequency

Row total ×Column total

Eij=

Grand total

Degrees of freedom = (R-1) (C-1)

Level of significance is 5%

Table: 4.3.1

Relationship between Age level of employees and Ability to accept, implement the change and plan to make decision

Level Age

Of satisfaction

20-30 30-40 40-50 50-60 60-70

High 1 2 1 2 2

Medium 1 7 6 12 3

Low 6 1 6 1 1

Null Hypothesis: The age level of employees doesnot influence the ability to

accept ,implement the change and plan to take decision

Alternative Hypothesis: The age level of employees influence the ability to accept,

implement the change and plan to take decision.

The tabulated value x2 at 5% level of significance is 9.49

O E O-E (O-E)2 (O-E)2/E Yates correction

1 0.3 0.7 0.5 1.7 0.13

2 1.5 0.5 0.3 0.2 0

1 2 -1 1 0.5 1.12

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2 2.3 -0.3 0.1 0.04 0.27

2 0.9 1.1 1.2 1.3 0.4

1 4.5 -3.5 12.3 3 3.5

7 5.6 1.4 2 0.4 0.14

6 7.3 -1.3 1.7 0.23 0.44

12 8.4 3.6 13 1.5 1.14

3 3.3 -0.3 0.1 0.03 0.19

6 2.3 3.7 13.7 5.6 4.5

1 2.9 -1.9 3.6 1.2 2

6 3.8 2.2 4.8 1.3 1.9

1 4.3 - 3.3 11 2.6 0.8

1 1.7 - 0.7 0.5 0.3 3.35

∑2 = 19.8

Degrees of freedom =(R-1) (C-1)

= 8

Conclusion

The tabulate value =15.5 is less than the calculated value 19.8.so there is no

Relationship between the Age level of employees to ability to accept implement the

change and plan to make decision.

Table 4.3.2

Relationship between Education and ability to learn and

Communicate

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Null Hypothesis: The education level of employees does not influence of employees influence the ability to learn and communicate

Alternative Hypothesis: The education level of employees influence the ability to learn and communicate

The tabulated value of x2 at 5% level of significance is 9.49

O E O-E (O-E)2 (O-E)2/E Yates correction

12 7.8 4.2 17.6 2.25 1.8

5 9.2 -4.2 17.6 2.25 2.4

7 7 0 0 0 0.03

3 5 -2 4 0.8 1.25

5 5.8 -0.8 0.64 0.1 0.3

7 4.3 2.7 7.2 1.7 1.12

2 4.2 -2.2 5 1.2 1.4

10 5 5 25 5 4.05

1 3.8 -2.8 8 2.1 2.9

∑2 = 15.25

Degrees of freedom =(R-1) (C-1)

= 4

Conclusion

The tabulate value = 9.488 is less than the calculated value 15.25.So

there is no Relationship between the education level of employees in ability to learn

and communicate

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Education

Level of Satisfaction

SSLC HSC GRADUATE

High 12 5 7

Medium 3 5 7

Low 2 10 1

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Table 4.3.3

Relationship between Experience and Job Knowledge, Quality of work, Time of

work

Null Hypothesis: The Experience of employees doesnot influence the Job

Knowledge,quality of work,Time of work

Alternative Hypothesis: The Experience of employees influence the Job

Knowledge,quality of work,Time of work

The tabulated value of x2 at 5% level of significance is 9.49

O E O-E (O-E)2 (O-E)2/E Yates correction

10 9 1 1 0.1 0.02

6 9.5 -3.5 12.2 1.3 1.7

13 10.6 2.4 5.8 0.5 0.3

5 3.7 1.3 1.7 0.5 0.17

6 4 2 4 1 0.6

1 4.4 -3.4 11.6 2.6 3.5

1 3.4 -2.4 5.8 1.7 2.5

5 4 1 1 0.25 0.06

5 4.01 1 1 0.24 0.062

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Experience

Level of

satisfaction

Below 5 yrs 5-10 10-16

High 10 6 13

Medium 5 6 1

Low 1 5 5

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∑2=8.91

Degrees of freedom =(R-1) (C-1)

= 4

Conclusion

The tabulate value = 9.488 is less than the calculated value 8.912. So there is

no relationship between the Experience Level of Employees in job knowledge quality

of work and time of work.

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CHAPTER – V

Findings, suggestions & conclusion

CHAPTER 5

FINDINGS

29% of employees are comes under 50-60 years of age

38% of employees have HSC qualification

37% of the employees have the experience level between 10-16 years.

44% of the employees have the income level from 10000 & above69

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25 % of employees said that get increments for the way in which the

Performance Appraisal System helps for Future Growth.

35 % 39 %, 38% of employees said that The way in which the Training

Program helps in once a year,twice a year,and thrice a year.

47% employees satisfied with the Self-Improvement after the Performance

Appraisal System.

The parameter used Dependability of PAS as 40 % of employees are satisfied

46 % of employees said that the system is transparent and there is proper

communication regarding the negative remarks

46 %said that they have changed themselves after telling their negative

remarks

48% said that they had got chance for further clarification and they got benefit

by it.

49% of the employees said that performance appraisal helps for future growth.

46 % of the employees said that the system is transparent. 48% said that there

is chance for further clarification. Around 47 % said that they would try to

change themselves after the negative remark quotated in the appraisal form

The weighted average value says that 4.05 % of employees are highly satisfied

with their Punctuality and discipline and 3.32% of employees are satisfied it

helps for future growth

The weighted average value says that 4.07 % of employees are highly satisfied

with thei job knowledge and 3.48 % of employees are satisfied it helps for

future growth

The weighted average value says that 4.38 % of employees are highly satisfied

with their learning and communication and 3.86 % of employees are satisfied

The weighted average value says that 3.65 % of employees are highly satisfied

with their learning and communication abilities and 3.21 % of employees are

satisfied in willingness to learn the job

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The weighted average value says that 3.82 % of employees are highly satisfied

with their implementing the change and 3.59 % of employees are satisfied in

nature of the appraiser.

The weighted average value says that 4.17 % of employees are highly satisfied

with their ansenteeism rate and 3.28 % of employees are in proper record

keeping .

The weighted average value says that 4.05 % of employees are highly satisfied

with their writing and oral abilities and 3.32 % of employees are satisfied it

helps for future growth

The weighted average value says that 3.84 % of employees are highly satisfied

with their flexibility and 3.23 % of employees are satisfied in nature of the

appraiser.

The weighted average value says that 4.36 % of employees are highly satisfied

with their personal grooming and 3.82 % of employees are satisfied it helps

for future growth

The weighted average value says that 3.76 % of employees are highly satisfied

with their company policies and 3.26 % of employees are satisfied in existing

in objectivity

The weighted average value says that 3.94% of employees are highly satisfied

with their computer skills and 3.30 % of employees are satisfied it helps for

future growth

The weighted average value says that 4.07 % of employees are highly satisfied

with their guest relation and 3.21% of employees are satisfied in nature of the

appraiser.

4.38 % of employees are highly satisfied in writing and oral in performance

appraisal system among the company (4.36) personal grooming and (4.07)

guest relation and (4.05) Punctuality and discipline and (4.07) job knowledge

are Satisfied by the appraisal system in their working organization ()

flexibility (3.80) company policies are neutral about their working

organisation (3.82) implement change are dissatisfied

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The Chi square test says that there is no Relationship between the Age level

of employees to ability to accept implement the change and plan to make

decision.

The chi square test says that there is no Relationship between the education

level of employees in ability to learn and communicate

The Chi square test says that there is no relationship between the Experience

Level of Employees in job knowledge quality of work and time of work.

SUGGESTIONS

In order to improve the performance level of employees the organization

should create more awareness and to provide feedback regularly to the

employees about performance appraisal system.

Proper training should be given to the employees, in order to increase their

knowledge about the usefulness of the appraisal system.

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Top management shall continually review the appraisal conducted, which

shall be seen as positive support to the system by the appraiser as well as

appraisees, and their interest will be maintained.After appraisal program if

there is any improvement, the employees should be motivated by Promotion,

Increments etc.

CONCLUSION

The study had confirmed that the company is having a good

Performance Appraisal System. From this study, it is found that majority of

the workers were satisfied with the Performance Appraisal System.

To make the performance appraisal system more efficient and

excellent, the company should give importance to the employees and create

awareness among employees and it shall consider some of the ways and means

suggested by the employees like addition of parameters such as Interpersonal

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skill, dependability and conducting regular training program on the appraisal

system.

I hope that the suggestion given in the report may be implemented in

future course for the benefit of the workers and the company.

The company should conduct the similar type of research at regular

interval to know the changing attitude of workers and to know about their

improvement in order to motivate them.

BIBLIOGRAPHY

Websites

1. www.PerformanceAppraisal.com

2. www.HRlibrary.com

3. www.appraisal .org.com

BOOKS

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1. Research methodology

By -C.R. Kothari

2. Statistics

By- R.S.N. Pillai

V. Bhagavathi

3. Human Resource Management

By -John M Ivancevich

4. Human Resource Management

By- Biswajeet pattanayak

5. Human Resource Management

By -K. Aswathappa

6. Human Resource Management

By Snell Bohlander

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APPENDIX

APPENDICES

“A STUDY ON THE EFFECTIVENESS OF THE EXISTING PERFORMANCE

APPRAISAL SYSTEM” – In Praveen chem Industry, Karaikal.

QUESTIONNAIRE

PERSONAL DETAILS

1) Name:

2) Designation:

3) Age:

a) 20-30 b) 30-40 c) 40-50 d) 50-60 e) 60-70

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4) Gender:

a) Male b) Female

5) Educational qualification:

a) SSLC b) HSC c) Graduate

6) Experience:

a) Below 5 years

b) 5-10 years

c) 10-16 years

7) Income:

a) 3000 & above b) 6000 & above c) 8000 & above

1)Are you satisfied with the method used to measure the Punctuality and Discipline in the

existing performance appraisal system?

Highly satisfied Satisfied Neutral

Dissatisfied Highly dissatisfied

2) Are you satisfied with the method used to measure the Job Knowledge, Quality of

Work, Effective Time at Work and Attitude towards Work in the existing

performance appraisal system?

Highly satisfied Satisfied Neutral

Dissatisfied Highly dissatisfied

3. Are you satisfied with the method used to measure the Writing and Oral abilities in the existing performance appraisal system?

Highly satisfied Satisfied Neutral

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Dissatisfied Highly dissatisfied

4. Are you satisfied with the method used to measure the Ability to Learn and Communicate in the existing performance appraisal system?

Highly satisfied Satisfied Neutral

Dissatisfied Highly dissatisfied

5)Are you satisfied with the method used to measure the Ability to Accept, Implement

the Change, to For See Problem and Plan and to take Decision at Short Notice in the

existing performance appraisal system?

Highly satisfied Satisfied Neutral

Dissatisfied Highly dissatisfied

6) Are you satisfied with the method used to measure the Absenteeism Rate in the existing performance appraisal system?

Highly satisfied Satisfied Neutral

Dissatisfied Highly dissatisfied

7.Are you satisfied with the method used to measure the Flexibility in the existing performance appraisal system?

Highly satisfied Satisfied Neutral

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Dissatisfied Highly dissatisfied

8.Are you satisfied with the method used to measure the Personal Grooming in the existing performance appraisal system?

Highly satisfied Satisfied Neutral

Dissatisfied Highly dissatisfied

9)Are you satisfied with the method used to measure the Knowledge on the Company policies in the existing performance appraisal system?

Highly satisfied Satisfied Neutral

Dissatisfied Highly dissatisfied

10). Are you satisfied with the method used to measure the Education and Computer Skills in the existing performance appraisal system?

Highly satisfied Satisfied Neutral

Dissatisfied Highly dissatisfied

11.Are you satisfied with the method used to measure the Guest Relation in the existing performance appraisal system?

Highly satisfied Satisfied Neutral

Dissatisfied Highly dissatisfied

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WAYS AND MEANS TO IMPROVE THE EXISTING

PERFORMANCE APPRAISAL

12. Do you think that performance appraisal system help for the future growth?

Yes No

13. After the appraisal program is any training program conducted.

Yes No

13.a) If yes, how many times you have attended the training program

Once in a year twice in a year

T Thrice in a year More than thrice in a year.

14. Have you improved yourself after getting information from the performance appraisal system?

Yes No

15. Can you suggest some parameters, which have to be included in the performance appraisal?

Dependability.

Inter Personal Skill.

All the above.

If any other, please specify,

16. Do you think that the system is transparent?

Yes Partly Not at all.

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16.a) If yes, is there is any communication regarding the negative remark given by the appraiser.

Yes No

17. Have you tried to change yourself after the negative remarks quoted in the performance appraisal system?

Yes May be Not at all.

18. Have you been given any chance for further clarification about the negative remarks, after you have been appraised?

Yes I don’t know. Not at all.

19. Can you suggest some methods and tools to measure the parameters in

the performance appraisal system?

81