final formatted report shilpa

8/4/2019 Final Formatted Report Shilpa

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Project Report

ON

PERFORMANCE APPRAISAL SYSTEM IN HIMALYA

INTERNATIONAL LTD. POANTA SAHIB

This Report Submitted in the fulfillment of the Requirements for the Award of the degree of

MASTER OF BUSINESS ADMINISTRATION

(2009-11)

Submitted by: - Shilpa Saini Submitted to: -Neha Srivastav

MBA 3rd Semester

Specialization: - HRM

ENROLMENT NO:

PHONICS GROUP OF INSTITUTION

UTTRAKHAND TECHNICAL UNIVERSITY DEHRADUN


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DECLARATION

Hereby declare that the project report entitled PERFORMANCE APPRAISAL SYSTEM under

Human Resource Department submitted for the degree of Master of Business Administration, ismy original work and the project report has not formed the basis for the award of any degreeor similar other titles. It has not been submitted to any other University or Institution for theaward of any degree or diploma.

SHILPA SAINI

MBA-2nd Year


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ACKNOWLEDGEMENT

In difficult moments, behave like duck; keep calm and unruffled on the surface, But keep

paddling away like crazy underneath

First of all I would like to thank Ms. Garima Dutt (Manager HR) for granting permission to mefor the summer training at HIMALYA INTERNATIONAL LTD. who provided me sincere guidanceat every possible juncture..

Last but not the least; I thank my institute Phonics School of Business Administration, Roorkee,for providing me with the experience of performing my project at a reputed company likeHIMALYA INTERNATIONAL LTD.

Name: Shilpa Saini

MBA 3rd Semester

HRM


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PREFACE

At Himalya International Ltd., the employees are considered as most valuable asset and

strength for sustained growth in the development of the company. It believes in testingcontinuously the human resources for employees personal growth. Young professional leadsthe company. It has the open work environment, which is achievement oriented and its drivenby autonomy and receptive to innovations.

Like any other organization, Himalya International Ltd. Has framed Rules, Regulations, Policies,Systems and Schemes etc. for running its business smoothly.

Himalya International Ltd. has also introduced various schemes for the welfare of employeesFor smooth business operations and to take advantage of the benefits under these schemes, it

is necessary that every employee understand that these Rules, Regulations, Policies, Systemsand Schemes, fully and clearly.


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EXECUTIVE SUMMARY

Performance appraisal systems began as simple methods of income justification. That is,

appraisal was used to decide whether or not the salary or wage of an individual employee was justified.

The process was firmly linked to material outcomes. If an employee's performance was foundto be less than ideal, a cut in pay would follow. On the other hand, if their performance wasbetter than the supervisor expected, a pay rise was in order.

Little consideration, if any, was given to the developmental possibilities of appraisal. If was feltthat a cut in pay, or a rise, should provide the only required impetus for an employee to eitherimprove or continue to perform well. Sometimes this basic system succeeded in getting the

results that were intended; but more often than not, it failed.

Early motivational researchers were aware that different people with roughly equal workabilities could be paid the same amount of money and yet have quite different levels of motivation and performance.

These observations were confirmed in empirical studies. Pay rates were important, yes; butthey were not the only element that had an impact on employee performance. It was foundthat other issues, such as morale and self-esteem, could also have a major influence.

As a result, the traditional emphasis on reward outcomes was progressively rejected. In the1950s in the United States, the potential usefulness of appraisal as tool for motivation anddevelopment was gradually recognized. The general model of performance appraisal, as it isknown today, began from that time.


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TABLE OF CONTENTS

1. Profile of the Company 08-16

Product profile

Company mission

Objective & Obligation

SWOT Analysis of Company

Rational of the study

2. Objective of the Study 17

Title of the Project

Objectives of the Project

Scope of the Project

3. Theoretical Perspective 18-21

4. Research Methodology 22-45

Data Analysis & Interpretations

Limitation of the Project

5. Findings and Conclusions 46-47

6. Recommendations / Suggestions 48-49

7. Appendices 50-51

8. Bibliography 52


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Chapter 1

INTRODUCTION

Profile of the company

Sanjeev Kakkar and incorporated in the year 1992. It is a frozen food company processingMush-rooms, Baby potatoes & Cheese. Himalya has time and again catered to the needs of

its customers through innovation and customization by offering a wide assortment of purevegetarian food and dairy products.

Since 1979 the company, which started as a small unit, has never looked back. At Himalya,strategic planning based on predictive customers needs has always set the momentum forconstant diversification within the Specialty Foods segment.

HIL has presently, over 12000 shareholders and over 500 employees. The company operatesfrom its administrative office in Delhi and their production base is at Paonta Sahib, HimachalPradesh. They also have marketing base at Princeton, New Jersey in United States.

Till 2007 HIL was operating as 100% EOU. However in May 2007, company converted its 100%EOU status into DTA under EPCG (Export Promotion Capital Goods) scheme of the governmentof India, as the company planned of venturing into the domestic market.

Himalya Internationals work ethics, product quality, innovation, diversification and customercare are only a few attributes that set the company apart from others and make it an idealbusiness partner. Not only does Himalya excel in offering a wide assortment of products, butalso time and again the company has catered to the needs of its customers through innovativeas well as custom fit produce.

Its ideal location, which is the foothills of the mighty Himalayas with freshest of Air, amidstpristine glacier blue underground water sources and the richest of soils, make this aspect quitesimple really; here anything flourishes. Nature itself lends a hand to the already unpolluted,

green acres.

A pioneer in multiple instances, Himalya has constantly recreated itself, only to become better.Himalya is publicly traded company on all major stock exchanges of the country. Himalya hasfive hundred plus strong team members working all round the year.

Himalya is ISO 9001:2000 certified Company with all its plants complying with InternationalGMP & HACCP. Himalya has four complimenting production units at its 25-Acre complex.


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Man Mohan Malik, the Founder, Chairman and CEO of Himalaya International was thrust intobusiness at the age of twenty on sudden demise of his Father. Six years of multiple debacles indiverse businesses, Textiles to Bullion, Commodities to trading at stock exchange did not

decimate his will to succeed. With just a Penny in his pocket in 1979, he launched Himalya withgreen field project for Minerals & Chemical manufacturing.

Even though his education had previously revolved around Physics and Law, he quickly becamea self-taught business leader in the small township of Paonta Sahib in foothills of HimalayaIndia.

Man believes in Power of Innovation and has always been itching to dare in uncharted territory.Throughout his lifetime, Man has been business leader extraordinaire. When times got toughhe only got tougher. Failure, hardship, adversity, nothing seemed to slow his ambition or drive.Not only is he committed to the entity he created 28 years ago, as he insists on living no morethat 2 km away from the plant but he is equally passionate about the welfare of the peacefulstate of Himachal Pradesh. He has consistently innovated programs to help surroundingfarmers, to further the lives of employees, and to maintain the serenity and balance of theenvironment.

Through his creativity and inspiring motivation, combined with the equally passionate zeal of Sanjiv Kakkar and invaluable support of the Himalya team, the company has reached newthresholds in the year 2007, and is geared to grow exponentially for the next decade.

Sanjiv Kakkar, Co-Founder, President & COO is the man with incessant obsession to succeed. Heis an Engineering grad from prestigious DMET, Calcutta India and Royal College UK. After 6Years with multi-national shipping companies in Top responsible positions he joined hands withMan in 1986 and they jointly charted the future course of Himalya.

Diversifying from Chemicals to food business in 1995, they set up a new composite project togrow Mushrooms & to process frozen vegetables and went on to contract farming babypotatoes and recently ventured in Buffalo Mozzarella Cheese.

Going through various Roller Coaster rides without blinking they have put Himalya as the Indiaslargest Premium frozen food Company today.

Sanjiv is the Chief Architect of Himalayas marketing operations in North America. He migratedto United States to set up the Food Marketing operations of Himalya in 1996.


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Toiling from the scratch, he pierced the seemingly invincible market and over the years he hascreated an extensive network with Institutional buyers and has put Himalya in an enviableposition with most discerning large food corporations of North America.

Board of directors

Mr. Man Mohan Malik, Chairman and CEO Mr. Sanjiv Kakkar, President and COO Mrs. Sangita Malik Director Mr. Sunil Khera Director Mr. Rajan Dhawan, Director Mr. Chetan Sharma, Director, (Institutional Nominee) Mr. R.P.Jain Director ( Institutional Nominee)

Products of the Company:

As on date, Himalya International Ltd. Ltd. boasts of a rich and variegated portfolio of cost-effective and innovative products based on the modern technologies.

These include:-

Mushrooms: Himalya offer three varieties of Mushrooms; White (Agaricus), Crimini (ItalianBrown)and Portobello as frozen Buttons, Slices, Dices & de-stemmed Caps. Mushrooms aregrown in-house right from Composting agro waste and developing spawn to quick processing

within hours of picking.

Contract farming: Himalya has created partnerships with local farmers to produce all its rawmaterial requirements from Vegetables to pure Buffalo milk.

Specialty Vegetables: Himalya process Vegetables & Baby potatoes grown especially in sub-


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Himalayan terrain. Baby Potatoes are delicious & full of nutrition with tender skin. We alsocreate Baby Potato skins for specialty, gourmet food service segment.

Buffalo milk Italian Cheeses: Most recently we have ventured to coverage the pure Buffalo milkfrom India the original home of water buffaloes with traditional Italian knowledge of making

the real, authentic Mozzarella & Ricotta Cheeses under an Italian expert Raffaele Cioffi. Raffaeleis the fifth generation cheese producer from the coast of Sorrento in Compania region of Italy.He guarantees the authenticity and true tradition by supervising the entire process frommilking to finish product at our plant

Sweets & Appetizers: Ethnic sweets and appetizers fall under the companys prepared foodline.

Quality Control & Assurance: All the processing plants are state of the art equipment sourcedfrom the world leaders in respective fields. Himalayas Plants are GMP/HACCP certified. Wehave established strict HACCP procedures that ensure the highest standards of hygienicprocessing. From the spawn for mushrooms, to the handling of the finished package, productquality is never compromised. We have the in-house separate labs to check the quality of allinputs, goods in process and Microbiology testing of finished products released fordispatch. The companys team of technicians and microbiologists constantly test the productsto ensure this level of excellence.

The company, which started as an export unit has recently decided to enter domestic market tocapture the burgeoning Indian market. For Overseas customers, Himalya provides 24x7

supports from its dedicated Back Office. Representatives ready to answer any questions anddeal with any concern are ever present.

Environment is Sacred is the philosophy of the Company. In 2002 the Companys FounderChairman himself, created a breakthrough technology to turn spent mushroom substrate, anenvironmental hazard, into an environmental asset. The most recent goal Himalya hasembarked upon, is to convert its almost there organic unit into one completely so. It alreadyrecycles all its effluents. At Himalya, constant improvement is the basic nature.

Contract Farming

We work with hundreds of small farmers in the sub Himalayan valley with cleanest of Air &Water Sources. Our Agriculture wing assists the farmers from planning the crops to providingquality seeds and Manure rich in organic Nitrogen. Good Agriculture Practices are laid out andmonitored diligently.


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Field selection: -Due care is taken in selection of fields. Fields should be little bit awayfrom main roads and it should be leveled one. There should be a approach road to the fields toenable transport of the produce through tractor.

Crop inspection : -regular inspection of crops is done during the growth & harvesting

period of crops.

Hygiene : - Due care is taken to keep hygiene at every level during crop productionperiod.

Water for irrigation : - Assured clean water irrigation facilities should be available.

Use of insecticides & pesticide s: -Only permitted insecticides & pesticides are used forcrop protection, they are also used in quantities permitted and under direct supervision of companys technical staff. Twenty days before harvesting all pesticides sprays are stopped in

order to attain permitted residual levels. IPM practices are followed.

Use of manure : - a maximum emphasis is given for the use of organic manure &chemical fertilizers to a limited extend.

People should strictly be banned : - to go in the selected fields/target crops for toiletetc.

Workers are trained to maintain : - good hygiene at the time of harvesting. Workers diptheir hands in chlorinated water before starting their work & during the day after any break.

Harvesting is done :- manually & produced directly put in a tractor/trolley of tractor-which has a clean plastic sheet on the floors & walls.

Once the trolley is full : - it is covered by a clean cloth in order to avoid anycontamination during transportation.

Field is selected : - in such a way that produce after harvesting reaches factory withinshortest period.

We love our Mother Earth & its natural environment. We recycle all our spent compost from

mushrooms, Vegetable and Cheese plant waste & all other organic bye-products by Biodynamicmethod to produce manure rich in organic nitrogen and that is also an excellent soilconditioner. Bio-dynamic technology is a unique mythology by which the wastes can beuniformly degraded using a set of biodynamic preparations & enzymes and converted intoquality manure and bio organic soil conditioner complying with international regulation.


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Company Mission

MISSION STATEMENTSTRIVE TO BRING VALUE ADDITION SELF & ORGANI-ZATION

improving quality

iden fying opportuni es

total customer focus

minimizing errors and wastage of scarce resource

This Will Be Achieved By

posi ve a tude

being sensi ve and responsive

con nuous self up grada on

posi ve approach

being crea ve ,analy cal, and objec ve

Objective & Obligation

Objectives

* To serve the national interests in oil and related sectors in accordance and consistent withGovernment policies.

* To ensure maintenance of continuous and smooth supplies of frozen food products by wayof processing Mush-rooms, Baby potatoes & Cheese, transportation and marketing activitiesand to provide appropriate assistance to consumers to conserve and use frozen food productsefficiently.


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* To enhance the country's self-sufficiency in frozen food products and build expertise inlaying of frozen food products.

* To further enhance marketing infrastructure and reseller network for providing assuredservice to customers throughout the country.

* To create a strong research & development base in product formulations, transportationand alternative products with a view to minimizing/eliminating imports and to have nextgeneration products.

* To optimize utilization of frozen food products capacity and maximize distillate yield andgross margin.

* To maximize utilization of the existing facilities for improving efficiency and increasingproductivity.

* To minimize stock loss in marketing operations to effect energy conservation.

* To earn a reasonable rate of return on investment.

* To avail of all viable opportunities, both national and global, arising out of the Governmentof Indias policy of liberalization and reforms.

* To achieve higher growth through mergers, acquisitions, integration and diversification byharnessing new business opportunities in frozen food products and downstream opportunitiesoverseas.

* To inculcate strong core values among the employees and continuously update skill setsfor full exploitation of the new business opportunities.

* To develop operational synergies with subsidiaries and joint ventures and continuouslyengage across the hydrocarbon value chain for the benefit of society at large.

Obligations

* Towards customers and dealers:- To provide prompt, courteous and efficient service andquality products at competitive prices.

* Towards suppliers:- To ensure prompt dealings with integrity, impartiality and courtesy andhelp promote ancillary industries.


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* Towards employees:- To develop their capabilities and facilitate their advancement throughappropriate training and career planning. To have fair dealings with recognized representativesof employees in pursuance of healthy industrial relations practices and sound personnelpolicies.

* Towards community:- To develop techno-economically viable and environment-friendlyproducts. To maintain the highest standards in respect of safety, environment protection andoccupational health at all production units.

* Towards Defence Services:- To maintain adequate supplies to Defence and other Para-military services during normal as well as emergency situations.

Financial Objectives

* To ensure adequate return on the capital employed and maintain a reasonable annualdividend on equity capital.

* To ensure maximum economy in expenditure.

* To manage and operate all facilities in an efficient manner so as to generate adequateinternal resources to meet revenue cost and requirements for project investment, withoutbudgetary support.

* To develop long-term corporate plans to provide for adequate growth of the Companysbusiness.

* To reduce the cost of production of frozen food products by means of systematic costcontrol measures and thereby sustain market leadership through cost competitiveness.

* To complete all planned projects within the scheduled time and approved cost.

SWOT Analysis of Company

STRENGTH (S): -

Low cost producer of quality products due to cheap labor and fully depreciated plants.

Flexible manufacturing set up.

Entry barrier due to high replacement cost of its manufacturing facilities.


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Comprehensive turnkey experience from product design to commissioning.

Weaknesses (W):

High working capital requirement due to its exposure to cash starved.

Inability to provide project financing.

Opportunities (O): -

High-expected growth in various sectors.

High growth forecast in Indias index of industrial production would increase demand forindustrial equipment.

Threats (T): -

Technical suppliers are becoming competitors with the opening up of the Indianeconomy.

Fall in global prices can affect profitability .

Rational of the study

The topic chosen Performance appraisal was aimed for the betterment of the organization

in terms of quality as well as quantity. The scope of the study under mentioned pointsdepicts the same.

To increase the productivity by increasing the level of performance. The programme would help the organization in meeting its future personal need.

The programme will help the employee in their personal group by improving their Knowledgeas well as skill


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Chapter 2

OBJECTIVE OF THE STUDY

Title of the Project

For summer training I got an opportunity to do my summer training in HIMALYAINTERNATIONAL LTD. because it is one of the biggest, well established and renowned in its fieldand serious about training its worker and intent to make it understood that they really care forthem.

Objectives of the Project

To understand the Performance Appraisal activities of Himalya International Ltd.(HIL) To nd out if the Performance Appraisal ac vi es help the employee in hisperformance. Take the response of employees towards the Performance Appraisal ac vi es c arriedon upon them.

Scope of the Project

Time for the starting of study

The project was initiated on 15 th June 2010, and was concluded on 30 th July 2010

Time duration for the completion of the study

The project was completed in HIMALYA INTERNATIONAL LTD. within 6 weeks.

Place for doing the study

The project had taken its place in HIMALYA INTERNATIONAL LTD. Paonta Sahib.


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Chapter 3

THEORETICAL PERSPECTIVE

Operational Definition of the Concept

Performance Appraisal System: Performance appraisal is a process of evaluatingemployee performance for the purpose of placements, selections for promotions, careerplanning, financial rewards, motivation etc., and performance appraisal seeks to achievefollowing objective.

To assess the performance, personal attributes and potential of the employee.

Performance based rewards in terms of promo on, increments etc.

To iden fy training needs.

To assess strengths, areas of improvements and give feedback to the employee.

Performance Appraisal Process

1. HR to prepare the Appraisal Form of individual employee to be appraised and send it

to concerned Reviewing Officer/HOD.

2. Reviewing Authority/HOD will arranged distribution of form to individual employee

through Appraising Officer/S.H.

3. Employee shall fill his part in the Appraisal form in the appraisal form and shall hand

over the same to Reviewing Officer/S.H.

Performance Appraisal

Company considers its human resources as the most valuable resources for its growth &

Development. Performance appraisal seeks to achieve the following:


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1. To set realistic & challenging targets/ key performance area on annual basis for theindividual.

2. To assess employees performance based on person attributes. Job performed targetsachieved/ specific achievements.

3. To assess the strengths, weakness& potential of the employee.

4. Performance based reward in terms of increment& promotion etc.

Appraisal period

Appraisal period is from April to March. Every employee is appraised at the end of the Appraisalperiod. Employees joining during appraisal are appraised on completion of their one yearservice& employees joining after March are appraised in next appraisal.

Method of Appraisal

The employees performance is appraised by the department & sectional head in consultationwith his immediate supervisor on personal attributes, job performed targets achieved/ specificachievement. Finally the appraisal is reviewed & approved by the review committee to ensureuniformity& objective.

Appraisal Feedback

1. The appraisal is being discussed with the employee by the appraise to.

2. Feedback about his performance, strength& weakness employee is also suggested area of consolidation& improvement.

Employees Co-Operation

The appraisal system requires active because its effectiveness depends on realistic self-assessment & positive approach towards the feedback.

Training & Development


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Training & development is an important aspect of the H.R.D. The company believes in training& development of its employees. To take higher responsibility and to meet the challenges of the individual employee is assessed by his sectional & departmental head in consolation withemployee. In hour& outstation programs are arranged for employees byH.R.D. on

recommendation of sectional & departmental head.

Performance Appraisal System

Performance appraisal is a process of evaluating employee performance for the purpose of placements, selections for promotions, career planning, financial rewards, motivation etc.,performance appraisal seeks to achieve following objective.

To assess the performance, personal a ributes and poten al of the employee.

Performance based rewards in terms of promo on, increments etc.

To iden fy training needs.

To assess strengths, areas of improve ments and give feedback to the employee.

Individual Components Defined:

Attributes

There are seven specific and major attributes that have been broken into sub componentsAgainst which ratings to be provided. The various attributes are explained.

Work Planning

ABILITY TO PLAN

ORGANISE EXECUTE

MEET DEADLINES

INTEGRITY


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RESPONSIBILITY

Communication

ARTICULATING

PERSUASION

SUPPORT

CONFIDENCE

Conceptual Depth

VISION

LONG RANGE PLANNING

VERSATILITY

CREATIVITY AND INNOVATION

Overall Business Approach

TECHNICAL BASIS appreciates the technical up grada ons and the technological applicationsin the organization.

FINANCIAL KNOWLEDGE has been appreciated of the nancial ra os and instruments.

STRATEGIC PRIORITIES has appreciation of situations and strategies based on those situations

CONSUMER DRIVEN has a customer friendly approach to both internal and externalcustomer.


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Chapter 4

Research Methodology

Data Analysis & Interpretations

Key Training and DevelopmentThe appraisee, Section HEAD and the HOD should individually list out important training needsof the appraisee for him to impart his specific functions of his job effectively and in the mannerthat generates optimum output.

This section of form can also help the Departmental Heads and the HR Manager to plan atraining calendar for the employee and effectively conduct the same.

Ratings

Ratings in the terms are to be awarded to the individual, by his immediate superior and thedepartmental head in the specific columns. The points are given as:

OUTSTANDING (OS)

COMMENDABLE (CO)

MEET EXPECTATIONS (ME)

NEEDS IMPROVEMENT (NI)

UNSATISFACTORY(US)


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Appraisal Design


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Concept :- The performance dimensions are several. They include duties, responsibilities,behavior and traits. Performance appraisal involves at least two persons/parties: the appraiser(who does the appraisal) and the appraise (Whose performance is being appraised).

Appraise expect

To know what his duties and responsibilities are

To know what is expected o im and whether the expecta onsare reasonable enough

To know how he is doing

To have appraisers help, if needed Rewards to be commensurate with performance

Appraiser should

Prepare job descrip ons

Facilitate appraisee to setgoals/targets

Analyze results with appraisee

Advice, guide, coach & counsel

Reward for good results

Criteria: - Several performance measures such as output, quality, punctuality, cost controlcontribution, job knowledge, discretion, initiative, team work, resourcefulness honestly, andleadership qualities are usually reckoned as some of the criteria against which performance isassessed.

Context: - The top management philosophy values and belief system in the organizationinfluence the notions about people in the organizations and the type of control, motivation andcommunication systems.


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Culture: - The cultures of people in general seem to affect appraisal system. Studies andcommentaries on Indian organizations seem to point to a pattern where the loyalties of employees are more to the people than to the tasks or to organizations.

Contingency: - There is a systematic effort to link performance appraisal to other subsystems of

human resource management such that all personnel decisions use the performance appraisaldata as a critical input, it becomes difficult to impart seriousness in to the system. The resultwould be apathy on the point of both the appraiser and the appraisee to the entire process.


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Past Oriented Appraisals

Appraisal by objectives: - The objectives for the evaluation period (usually 12 months) aredetermined through joint discussion and negotiation between the superior and subordinate.This system is followed even in organization which does not have a formal programme of Management by Objectives. Invariably, in many organizations where the objectives arepredetermined, Key performance Areas (KPAs) or Key Result Areas (KRAs) are also decided inadvance through joint effort.

Confidential Report: - A confidential report is a report on the subordinate by the immediatesuperior and covers a limited range of aspects like the candidates strengths, weakness, majorachievements or failures and information on some personality traits and behavior aspects. Theconfidential report system is usually a descriptive one and permits a lot of subjectivity.

Trait Appraisal: - Commonly used individual traits include several distinguishing characteristicsfirmly anchored in human behavior that manifest themselves on the job and influenceperformance. These characteristics include the following listed below.

Ability for sustained hard work Drive

Acceptance of responsibility Effort

Adaptability Efficiency

Analytical ability Honesty

Appearance Industriousness

Attendance Initiative

Attitude towards criticism Integrity

Capacity to train Intelligence

Commitment to task Judgment

Communication Leadership

Conduct Loyalty

Confidence Motivation


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Rating Scales :- These are techniques where performance is measured through assigningnumbers (0 to 4, 1 to 5 or 1 to 9), (A to D or E) or words which are descriptive adjectives (e.g.,outstanding, very good, good, fair, poor) to items or events to describe differences. In all ratingscales, most organizations are finding it useful to have an extra column of record N.A. (not

applicable) or N.O. (Not observed) or any other comment as appropriate.Ranking Technique: - Ranking techniques encourage superior or peers to rank-order all theirsubordinates or peers as the case may be. This is a form of comparative measurement.

Simple or straight Ranking: - This technique provides for an ordinal scoring; first, second, thirdand so on.

Forced Distribution Ranking: - This is ranking technique where raters are required to allocate acertain percentage of rates to certain categories (e.g., superior, above average, etc.) orpercentiles (e.g. Top 10%, Bottom 20% etc.) Both the number of categories and percentage of employees to be allotted to each category are a function of the performance appraisal designand format.

Paired Comparison: - This technique requires the rater to appraise which of the two employeesis superior, instead of having to rank order all the employees in the same work unit doing thesame job. This is widely used when one is comparing a small number of people.

Narrative or Descriptive Methods :- The ongoing search for newer and better techniques of appraising employees performance led to several descriptive methods. These include the essayand the critical incident methods among others.

The Essay method :- In this method, the rater describes the rate in terms of several broadcategories such as the persons strengths and weakness, major achievements and failures,potential training and development needs and overall performance of the rater.

The Critical Incident method: - This method requires the rater to maintain a record of majorobservations of what he feels are work behaviors critical to the difference between success andfailure. It provides information based on systematic observation of actual job performance.

Behaviorally Anchored Rating Scales (BARS):- These are descriptions of various degrees of

behavior relating to an aspect of performance dimension. The behaviors are described for a setof intervals ranging from the most negative to most positive.


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Future Oriented Appraisals

Management by objectives: - It was Peter F. Drucker who first gave the concept of MBO to theworld way back in 1954 when his The Practice of Management was first published. Applicationof MBO in the field of performance appraisal is a recent thinking.

MBO works can be described in four steps:-

1. To establish the goals for each subordinate that he has to attain.

2. Involves setting the performance standard for the subordinates in a previously

arranged time period.

3. The actual level of goal attainment is compared with goals agreed upon.

4. Establishing new goals and, possibly, new strategies for goals not previously

attained.

Psychological Appraisals: - Large organizations employ full-time industrial psychologists. Whenpsychologists are used for evaluations, they assess an individuals future potential and not pastperformance. The appraisal normally consists of in-depth interviews, psychological tests,discussions with supervisions and a review of other evaluations. The psychologist then writesan evaluation of the employees intellectual, emotional, motivational and other work-relatedcharacteristics that suggest individual potential and may predict future performance. From

these evaluations, placement and development decisions may be made to shape the personscareer.

Assessment Centers: - An assessment Centre is a central location where managers may cometogether to have their participation in job related exercises evaluated by trained observers. Theprincipal idea is to evaluate managers over a period of time, say one to three days, by observing(and later evaluating) their behavior across a series of selected exercises or work samples.

Design of An Effective Appraisal SystemIt is useful to focus on aspects such as the following so that the appraisal system can beeffective:

1. Appraisal objectives and uses should be specific, clear, relevant, timely, adequate, open andfair. It should be adequately and appropriately linked with the other subsystems of human


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resource management and capable of being put to use in a manner beneficial to the individualemployee and the organization.

2. It should be an ongoing process of managing performances with employee activelyparticipating and supervisor playing the role of coach and developer.

3. The information generated should be tailored to the needs of the organization, performancerequirements and norms of behavior.

4. Recognize individual differences in system design. Identify the needs of rates in terms of feedback, mobility, Self-esteem etc.

5. The overall purpose should be developmental than judgmental. It is important to separateevaluation of performance and potential.

Implications for Performance And Satisfaction

Selection Practices: - An organizations selection practices will determine who gets hired. If properly designed, it will identify competent candidates and accurately match them to the job.The use of the proper selection device will increase the probability that the right person will bechosen to fill a slot.

Training and Development Programs: - Training programs can affect work behavior in twoways. The most obvious is by directly improving the skills necessary for the employee tosuccessfully complete his/her job. An increase in ability improves the

Employees potential to perform at a higher level. Of course, whether that potential becomesrealized is largely an issue of motivation.

A second benefit from training is that it increases an employees self-efficacy. Self- efficacy is apersons expectations that he or she can successfully execute the behavior required to producean outcome.


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Organizations that provide formal career development activities and match them to needs thatemployees experience at various stages in their careers reduce the likelihood that productivitywill decrease as a result of obsolescence or that job frustrations will create reducedsatisfaction.

Performance Evaluation: - A major goal of performance evaluation is to assess accurately anindividuals performance contribution as a basis for making reward allocation decision: if theperformance evaluation process emphasizes the wrong criteria or inaccurately appraises actual job performance, employees will be over- or under rewarded. This can lead to negativeconsequences such as reduced effort, increases in absenteeism, or search for alternative jobopportunities.

Reward systems: - If employees perceive that their efforts will be accurately apprised and if they further perceive that the rewards they value are closely linked to the evaluations, the

organization will have optimized the motivational properties from its evaluation and rewardprocedures and policies. We can conclude that rewards are likely to lead to high employeeperformance and satisfaction when they are

(1) Perceived as being equitable by the employee.

(2) Tied to performance and

(3) Tailored to the needs of individual

Union Management Interface :- The existence of a union in an organization adds another

variable in our search to explain and predict employee behavior. The union has been found tobe an important contribution to employees perceptions, attitudes, and behavior. The informalnorms that union cohesiveness fosters can encourage or discourage high productivity,organizational commitment, and morale.

Learning In The Executive Training

INDUCTION

5s (Japanese Technology)

KRA

QUALITY CIRCLES

COMPETANCY MAPPING

PRACTICALWORK ON EXCEL


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Data Analysis

Question no 1 : Number of service years in this organization .

Findings:- The response collected is based on the period of their service in the organization.As company was set up in 2003 so the years of service in the organization of most of theemployees is less than 5 years.


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Question no 2: Are you aware about your performance appraisal or any evaluation done byyour superior.

(a) Yes (b) No

Findings: - 80 % the employees had responded in favor of that they were aware aboutperformance appraisal.


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Question no 3: Are you aware about the modern techniques used in performance appraisal?

(a) Yes (b) No

Findings: Near about 60% of the employees had not aware about modern performanceappraisal techniques.


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Question no 4: Performance appraisal techniques make you better eligible for promotion,demotion, & transfer.

Findings: The 80% of the respondents shows that PARs as a good strategy to go ahead withpromotion while 40% of respondents do not agree with it.


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Question no 5: Do you think performance appraisal is useful or just a waste of time?

Findings: More than 90% of the employees say that performance appraisal is useful for theirself-assessment and promotions. Thus, they cannot ignore it. And rest of the employees thinksit as a waste of time


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Question no 6: Proper and adequate performance appraisal plays a crucial role in your careerdevelopment.

Findings : 92% of the responses show that Performance Appraisal Report helps a lot in thepromotional activities.


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Question no 7: Does performance appraisal report is helpful in identifying Training andDevelopment need or it lay development plan for you?

(a) To a large extent (b) To some extent (c) Not at all

Findings: 50% of the respondents are satisfied by the performance appraisal report as it helpsthem to understand the job profile and helps in training need identification.


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Question no 8: Performance appraisal is most of the time fair and unbiased.

Findings: 65 % of the respondents show that Performance Appraisal report is time fair &Unbiased.


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Question no 9: Have you understood clearly, as to what is expecting from you?

Findings: There is a close response from the respondents on Performance appraisal reportwhere on one hand (near about 40%) say that it makes feel refreshed & know there betterresponsibility. On the other hand some say that it has helped them in improving their skills notto define their future responsibility and performance


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Question No 10: Does the organization provide counseling after appraisal?

(a) Yes (b) No

Findings: Near about 75% of the respondents, say that Organization provides counseling afterperformance appraisal report


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LIMITATION OF THE PROJECT

Lack of expertise trainer handed in the prosecution of Performance Appraisal

programme. Lack of feeling in people of against the awareness for the Performance Appraisal

programme. Search for the exact Appraisal was also difficult to define.


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Chapter 5

FINDINGS AND CONCLUSIONS

Findings

1. The response collected is based on the period of their service in the organization. Ascompany was set up in 2003 so the years of service in the organization of most of theemployees is less than 5 years.

2. 80 % the employees had responded in favor of that they were aware about performanceappraisal.

3. Near about 60% of the employees had not aware about modern performance appraisaltechniques.

4. The 80% of the respondents shows that PARs as a good strategy to go ahead with promotionwhile 40% of respondents do not agree with it.

5. More than 90% of the employees say that performance appraisal is useful for their self-assessment and promotions. Thus, they cannot ignore it. And rest of the employees thinks it asa waste of time.

6. 92% of the responses show that Performance Appraisal Report helps a lot in the promotionalactivities.

7. 50% of the respondents are satisfied by the performance appraisal report as it helps them tounderstand the job profile and helps in training need identification.

8. 65 % of the respondents show that Performance Appraisal report is time fair & unbiased.

9. There is a close response from the respondents on Performance appraisal report where on

one hand (near about 40%) say that it makes feel refreshed & know there better responsibility.On the other hand some say that it has helped them in improving their skills not to define theirfuture responsibility and performance.

10. Near about 75% of the respondents, say that Organization provides counseling afterperformance appraisal report.


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Conclusion

It is truth that no work is completed in itself. In fact, completion of one job is actually thebeginning of another job. Likewise, performance Appraisal is never ending process. It isessential for personal & professional development.

This project has been considering all possible aspects mentioned in the project booklet.

The project is made very clear and precise with the help of the relevant data gathered from thecompany, company website & through various annexure.

In the concluding remark of my project report, I would like to state that at THE HIMALAYAINTERNATIONAL LTD. , the employees are considered as most valuable assets & strength forsustained growth & development of the company.

They believe in investing continuously in human resource for their growth. The companyis led by young professionals. They have an open work environment which is achievementoriented.

In spite of these merits, there are some demerits also in the company that the goals of the

Companies are not decided in advance and no feedback fixed for workers and executives in

Himalya International Ltd.


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Chapter 6

RECOMMENDATIONS / SUGGESTIONS

This situation realize that there were 20% of the employee who are unaware of theperformance appraisal report which will be reduced by providing them all counseling

They should have to be aware about the performance appraisal techniques because they haveto passes through it for taking better promotions & greater responsibility.

This shows there negligence towards there career & awareness. Thus, it can avoid by providingenough information to employee with the help of training & development exercise.

The 50% of respondents responses shows that they are not aware about importance of performance appraisal report. They should be aware about that how they can take promotionand greater responsibility through better performance.

They have to introduced career development graphs and necessary skills to reach that positionafter experiencing some years.

Respondents should have to better understand the job responsibility and training needidentification through schedule chart or through the job analysis.

Suggestions

Performance Appraisal should be experience, work skill, labors sincerity.

Evalua on should be as per performance and shall not be biased.

Valua on of performance should be done in each quarter.

Appraisal should not be Bell Curve. It should be based on department/ individual either 1005or 0%.

Employee is the key resource of the organiza on. Hence employee sa sfac on is the key tosuccess for the organizational growth. For employee satisfaction there should be goodincremental and promotional policies.

Things carried out on paper should be followed/ implemented or at least can be tried.


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Performance Appraisal should be done by MBO (Management by Objective) / M&M methodof appraisal.

Every employee should have a right of justification for his own roles, responsibilities anddesignation.

Organiza on must use 360 degree appraisal method because this method not only includesthe performance of an employee but his interpersonal skills also.


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Chapter 7

Appendix

PERFORMANCE APPRAISAL SYSTEM Questionnaire

M/s. Himalya International Ltd. Paonta Sahib

Name:

Designation/Post:Salary Grade:Qualification:Experience:

(1) No. of years of service in the organization :

(a) Less than 5 (b) 5-10(c) 10-15 (d) More than 15

(2) Do you aware about your PERFORMANCE APPRAISAL SYSTEM or anyevaluation done by your superior.

(a) Yes (b) No

(3)Are your aware about the modern techniques used in your performanceappraisal?

(a) Yes (b) No

(4) PERFORMANCE APPRAISAL SYSTEM techniques make you better eligiblefor promotion, demotion, & transfer.

(a) Agreed ( ) (b) Not Agreed ( )

(5) Do you think PERFORMANCE APPRAISAL SYSTEM is useful or just a wasteof time?

(a) Useful ( ) (b) waste of time ( )

(6) Proper and adequate PERFORMANCE APPRAISAL SYSTEM plays a crucialrole in your career development.

(a)Agreed ( ) (b) Not Agreed ( )


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(7) Does PERFORMANCE APPRAISAL SYSTEM report is helpful in identifyingtraining & development need or it lay career development plan for you?

(a) To a large extent (b) To some extent (c) Not at all

(8) PERFORMANCE APPRAISAL SYSTEM is most of the time fair and unbiased.(a)Agreed ( ) (b) Not Agreed ( )

(9) Have you understood clearly, as to what is expecting from you?

(a) Yes (b) No

(10) Does the organization provide counseling after recruitment?

(a) Yes (b) No


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Chapter 8

Bibliography

Publications:

Human Resource Management

by K. Aswathapa


by L. M. Prasad

Human Resource Managementby S. K. Gupta


by Robbinson


by C. B. Gupta


by C. V. Memoria

Websites:

http://www.himalyainternational.com/

www.wikipedia.com

www.google.com

final formatted report shilpa

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