saras project report
TRANSCRIPT
Summer Training Report
JASODA DEVI COLLAGE& INSTITUTIONS
A Project Report
ON
PERFORMANCE APPRAISAL
AT
SARAS DAIRYRAJASTHAN COOPERATIVE DAIRY FEDERATION
JAIPUR
Submitted in Partial Fulfillment for the
Full time P.G. Degree course
In Master of Business Administration [M.B.A.]
Submitted By:- Submitted To:-
Reena Rani Yadav Dr. SHIKHA ASTHANA
M.B.A-IV Sem.
(2008-2010)
INDEX
S.No. Particulars Page No.
Acknowledgement i
Preface ii
1. CHAPTER – 1. FOOD PROCESSING INDUSTRY IN INDIA 1 – 12
2. CHAPTER – 2. CORPORATE PROFILE 13 – 22
3. CHAPTER – 3. ABOUT SARAS & ITS PRODUCTS 23 – 28
4. CHAPTER – 4. PERFORMANCE APPRAISAL 29 – 40
5. CHAPTER – 5. EMPLOYEE WELFARE 41 – 47
6. CHAPTER – 6. RESEARCH METHODOLOLGY 48 – 49
7. CHAPTER – 7. DATA ANALYSIS & INTERPRETATION 50 – 55
8. CHAPTER – 8. FINDINGS & SUGGESTION 56 – 57
9. CHAPTER – 9. CONCLUSION 58 – 59
10. CHAPTER – 10. BIBLIOGRAPHY 60 – 61
11. CHAPTER – 11. ANNEXURE 62 – 67
CHAPTER 1.
FOOD PROCESSING INDUSTRY IN INDIA
FOOD PROCESSING INDUSTRY IN INDIA
The food processing industry in India is segmented into food grain /
pulse milling, fruit / vegetable processing, milk and milk products,
beverages, fish, poultry products, meat and meat products, aerated
water / soft drinks, beer / alcoholic beverages, breakfast cereals,
bread, biscuits, confectioneries, malt protein and edible oils / fats.
Like many other industries, the food processing industry also
comprises of both the organized and unorganized sector. Certain
branded and packed products such as butter, cheese, ghee, jams,
jellies, fruit / vegetable juices, sauces and ketchup, soups, broths,
fruit pulp and fruit juice based drinks are already exempted from
Excise Duty. This should be extended to all processed products made
from perishable goods such as poultry, meat, milk, fruits and
vegetables.
The industry is estimated to grow at 9-12 percent, on the basis of an
estimated GDP growth rate of 6-8 percent, during the Tenth Five
Year Plan period. Value addition of food products is expected to
increase from the current 8 percent to 35 percent by the end of 2025.
Fruit & vegetable processing, which is currently around 2 percent of
total production will increase to 10 percent by 2010 and to 25
percent by 2025. Given the size of the industry and the nascent
development stage, the food processing sector is a key focus area for
the Government of India. The importance of the sector is further
enhanced by the fact that over 70 percent of the population depends
upon agricultural activity for livelihood.
The Government has therefore been focusing on commercialization
and value addition to agricultural produce, minimizing pre/post
harvest wastage, generating employment and export growth in this
sector, through a number of regulatory and fiscal incentives. The
potential for processed food as per the stated vision (INR billion.) at
2003-04 prices is as follows:
Source: Vision, Strategy and Action Plan for Food Processing Industries in India. Prepared by Rabo India Finance Pvt. Ltd. for Ministry of Food
Processing Industries, Government of India, April 2005.
In order to achieve the market potential, the investment required in
capacity creation and setting up requisite infrastructure in the period
2003-04 was Rs.560 billion. Between 2009-10 it is expected to be
Rs.437 billion. and Rs.997 billion. in 2014-15. The sectoral
breakdown is as follows represented on next page: -
The source for these funds will be a combination of investment by
industry players, debt/equity from financial institutions, foreign
direct investment and Government funding through financial
schemes. The contribution from financial institutions, equity from
industry (including FDI) and Government is estimated to be
approximately 45%, 45% and 10% respectively.
The unorganized sector in food processing requires an investment of
about INR 100 billion. In the next ten years (estimated on the basis
of output ratio as 2:1 and capital intensity ratio as 5:1 of organized
and unorganized sector). The employment intensity is estimated to
be approximately 10 direct employment per INR million of
investment in the unorganized sector (Source: Dr. J.S.Bedi
Analysis). This will lead to direct employment creation of 1 million
in the unorganized sector. The indirect employment generation in the
unorganized sector will be about 1 million (assuming a ratio of direct
to indirect employment as 1:1). The above analysis assumes no
replacement of existing employment.
A nine-point strategy is recommended to achieve the stated vision:
1. Shift from supply driven to demand driven approach
2. Increase affordability of food products by reducing costs through
rationalization of tax regime and increasing supply chain efficiency
3. Enhance financing to the agriculture and food processing sector in
a comprehensive manner given the intrinsic linkages of the two
sectors
4. Improve food standards and safety systems through science based
setting of standards and strengthening of the food testing network
5. Strengthen institutional framework to develop manpower and
R&D capabilities to address global challenges
6. Increase competitiveness of the small and medium enterprises by
facilitating their access to the best practices, technology, capital and
marketing opportunities
7. Effective market development and awareness campaign to
enhance the image of Indian food products, particularly overseas
8. Foster public-private partnerships for infrastructure creation and
technology Upgradation
9. Replicate successful Indian and international business models
including cooperative models in production, processing and
marketing of food products
Food processing has an important role to play in linking Indian
agriculture to consumers in the domestic and international markets.
The agriculture sector in India contributes a fourth of the country’s
GDP and provides employment to approximately two thirds of the
population. However, its potential has not been tapped due to
underdevelopment of the food processing sector in India.
One of the most important challenges facing the country is providing
remunerative prices to farmers for their produce without incurring
the additional burden of subsidies. This challenge could be addressed
if cereals, fruits, vegetables, milk, fish, meat and poultry etc. are
processed for consumption in the domestic and international
markets. The impact of increased economic growth in agribusiness
through food processing can play a significant role in reducing rural
poverty and increasing rural income. Further, food processing leads
to significant employment generation – not only directly but also
across the supply chain in production of raw materials, storage of
produce and finished products and distribution of food products to
consumers.
For example a grant of INR 66.7 million (total investment of
approximately INR 250 to 300 million) to 35 units in UP in 2003-04
has resulted in direct employment of 2,500 and indirect employment
of 20,000. Processing of food enhances shelf life of agricultural
products and thus reduces wastages. The role of food processing
becomes critical since agricultural production is targeted to double in
the next 10 years. With low farmer price realization and wastage in
the food supply chain being significant even with the current level of
production, only processing of agri products can secure farmer
incomes against a slump in prices as well as reduce wastages.
Further, a vibrant food processing industry can be a catalyst for crop
diversification.
The big opportunity for India
As a food supplier, India with the second largest arable land in the
world, and with diverse agro-climatic zones across the country, has
tremendous production advantages in agriculture, with the potential
to cultivate a vast range of agricultural products. For example, India
produces 41% of the world’s mangoes, 30% of cauliflowers, 28% of
tea, 23% of bananas, 24% of cashew nuts, 36% of green peas and
10% of onions. This strong base in agriculture produces a large and
varied raw material base for food processing. These advantages if
leveraged optimally, can translate into India becoming a leading
food supplier to the world. As a consumer, India with a population of
1.08 billion, growing at about 1.6% per annum (Census Estimates) is
a large and growing market for food products.
Food is the single largest component of private consumption
expenditure, accounting for as much as 53% of the total. Further, the
upward mobility of income classes and increasing need for
convenience and hygiene will drive demand for (a) perishables and
non food staples and (b) processed foods.
However, the agri & food sector faces several challenges, which
hamper realization of potential. A long and fragmented supply chain
is the single largest bottleneck facing the sector. This together with
demand related issues as well as regulatory distortions have
cumulatively resulted in several inefficiencies. Comprehensive
supply chain solutions are the key to achieving sustainable
development of the Food Processing sector in India.
Food safety is a growing concern across the world. There is an
increasing need to provide greater assurance about the safety and
quality of food to consumers. With the increase in world food trade,
India’s potential to garner a higher share in world food trade and the
advent of the Sanitary and Phytosanitary (SPS) Agreement under the
World Trade Organization (WTO) have led to increasing recognition
and adoption of food safety measures. The capacity of India to
penetrate world markets depends on its ability to meet increasingly
stringent food safety standards imposed in developed countries. Food
standards are expected to acquire greater importance given
increasing concerns on food safety on the back of breakout of
diseases such as BSE, avian influenza etc. on the one hand and
growing consumer demand for products which are healthy on the
other. Therefore, compliance with international food standards is a
prerequisite to gain a higher share of world trade. At the same time,
there is growing awareness among Indian consumers given recent
controversies on quality standards of many food products. The
players in the Indian food industry need to keep these trends in view
and meet domestic and international consumer demand for safe food.
Future Employment Generation
Food processing has significant potential for employment generation
not only directly but also across the supply chain in production of
raw materials, storage of produce and finished products and
distribution of food products. Employment intensity is significantly
higher in the Small Scale Industries (SSI) sector as compared to the
organized sector for the same level of investment.
The incremental employment in the organized sector in FPI sector by
2015 on the basis of the stated vision is estimated at 8.2 million. The
sectoral break-down is as represented on next page:
The employment intensity in the organized sector is 1.8 direct and
6.4 indirect per million on investment. The ratio of indirect to direct
employment is therefore 3.5. Rabo India has estimated investment
required in the organized sector of FPI as INR 997 billion. in the
next ten years. Hence the employment generation potential in the
organized sector is 8.2 million including 1.8 million direct and 6.4
million indirect for an estimated investment of INR 997 billion.
The unorganized sector in food processing requires an investment of
about INR 100 billion. in the next ten years (estimated on the basis
of output ratio as 2:1 and capital intensity ratio as 5:1 of organized
and unorganized sector).
The employment intensity is estimated to be approximately 10 direct
employments per INR million of investment in the unorganized
sector (Source: Bedi Analysis). This will lead to direct employment
creation of 1 million in the unorganized sector. The indirect
employment generation in the unorganized sector will be about 1
million (assuming ratio of direct to indirect employment as 1:1). The
above analysis assumes no replacement.
SSI in Food Processing
The SSI sector accounts for 95% of industrial units in the country,
40% of value added in the manufacturing sector, 34% of national
exports and 7% of Gross Domestic Product (GDP). The SSI sector is
the largest employment generator next only to agriculture. It has
been estimated that an investment of INR 1 million in fixed assets in
the small-scale sector generates employment for forty persons and
produces more than four million rupees worth of foods or services.
The food sector is a leading employer within SSI, providing
employment to 480,000 persons (13% of SSI).
The SSI sector is less capital intensive with a high potential to
generate employment. However, the efficiency of SSI units is
impacted by the following:
- Lack of capital / credit
- Inadequate training technical / managerial
- Tools and technology (traditional and less efficient)
- Limited market knowledge (demand, food standards)
The organized large-scale sector is focused on processed foods,
where SSI cannot compete due to lack of marketing and distribution
strengths. However, SSIs can play an important role in procuring
from farmers and primary processing of produce to increase shelf life
and make it available to processor / marketers who have access to
the final consumer.
There is a strong need to provide necessary training and R&D
support to SSIs to promote product innovation. Also, SSIs have
limitations in terms of investments on brand development. There is a
need to promote public private participation in supporting collective
investment by SSIs in branding.
CHAPTER – 2.
CORPORATE PROFILE
ABOUT Rajasthan Cooperative Dairy Federation [RCDF] :
Dairy development was initiated by the state government in the early
seventies under the auspices of Rajasthan State Dairy
Development Corporation(RSDDC) registered in 1975. Two years
later RCDF assumed responsibility for many of the functions of
RSDDC. It became the nodal agency for implementation of
operation flood in the state.
(RCDF) set up in 1977 as the implementing agency for dairy
development programmes in Rajasthan is registered as a society
under the Rajasthan cooperative societies act 1965.
THE ORGANISATION:
The Federation is a State level apex co-operative organization owned
by its member unions each of which, in turn, is owned the dairy co-
operative societies in its area of operation which are themselves
owned by farmer members.
The Federation has a board of directors which has overall
responsibility for the planning policies, financial resource
mobilisation and management, member and public relations as well
as liaison with agencies of the state and central government,
financing institutions etc. The Federation has a chief executive
designated as Managing Director.
OBJECTIVES: -
To carry out activities for promoting production, procurement,
processing and marketing of milk & milk products for the
economic development of animal husbandry/ farming community.
Development & expansion of such other allied activities as may
be conducive for the promotion of the dairy industry,
improvement & protection of milch animals and economic
betterment of those engaged in milk production.
Organise and provide technical inputs.
Erection of Dairy, chilling plant, cattle feed plants for unions.
Study of problems of mutual interest of the Federation and milk
unions.
Impart training and orientation to dairy co-operative members.
Advise, assist and guide milk unions
Undertake audit and accounts supervision
Encourage fodder production etc.
ORGANIZATIONAL BOARD: -
Chairman: Shri Om Prakash Punia, Rajasthan Co-operative
Dairy Federation Ltd., JAIPUR.
Member: Shri Samir Singh Chandel, Managing Director
Rajasthan Co-operative Dairy Federation Ltd., JAIPUR.
Member: Secretary to Government, Animal Husbandry
Department, Government of Rajasthan, JAIPUR.
Member: Registrar, Co-operative Societies of Rajasthan,
JAIPUR.
Member: Dy. Secretary to Government, Finance (Gr. IV & PI),
Government of Rajasthan, JAIPUR.
Member: Shri Mahipal Singh, Chairman, Sikar-Jhunjhunu
Distt. Milk Producers Co-operative Union Ltd., SIKAR.
Member: Shri Pratap Singh Bithiya, Chairman, Pali Distt. Milk
Producers Co-operative Union Ltd., PALI.
Member: Shri Raghvendra Singh Deora, Chairman, Jalore-
Sirohi Distt. Milk Producers Co-operative Union Ltd.,
RANIWARA.
Member: Shri Kushalpal Singh, Chairman, Distt. Milk
Producers Co-operative Union Ltd., BHARATPUR
Member: Shri Gopal Lal Chaudhary, Chairman, Distt. Milk
Producers Co-operative Union Ltd., SAWAI-MADHOPUR.
Member: Dr. Smt. Gita Patel, Chairperson, Distt. Milk
Producers Co-operative Union Ltd., UDAIPUR.
Member: Shri Raja Ram Jorad, Chairman, Distt. Milk
Producers Co-operative Union Ltd., BIKANER.
Member: Shri Pema Ram Saharan, Chairman, Distt. Milk
Producers Co-operative Union Ltd., HANUMANGARH.
THREE TIER STRUCTURE:
The dairy co-operative movement operates on three tier system
wherein farmer members own dairy co-operative societies (DCS)
which own district milk producer's union. The unions collectively
own the RCDF. It is a vertically integrated structure that establishes
a direct linkage between those who produce the milk and those who
consume it.
Federation - Provides service & support to unions. Marketing
within & outside state, Liaison with government and NGO agencies,
mobilisation of resources & coordinating & planning programmes /
projects.
Union - Develops village milk cooperative network, procures milk
from DCS, processes & markets. Sale of cattle feed and related
inputs, promotion of cross breeding through AI and NS, promotion
of fodder development and general support & supervision to DCS.
DCS - Provides input services(AH, AI) to its members and
procurement of milk.
The dairy co-operatives depict the following institutional properties
Democratically elected board of DCS, milk unions & Federation
from among their members.
Adoption of such bye laws which ensure democratic process on
the principles of cooperation.
Management & ownership of assets by the cooperatives.
Autonomy in pricing, marketing & appointment of personnel.
Employment of professional.
Total control of the organisation is in the hands of its members.
INFRASTRUCTURE: -
A. INPUT FACILITIES LOCATIONEXOTIC NUCLEUS FARM BASSIFROZEN SEMEN BANK BASSIFODDER SEED FARM ROJARI / BASSI / PALCATTLE FEED PLANTS AJMER, BIKANER, JODHPUR, NADBAI
B. MILK PROCESSING , TRAINING & CATTLE FEED FACILITIES
UNIONMILK (TLPD
)
DRYING
(MTPD)
CHILLING CENTRES
HIRED CHILLING CENTRES
TRAINING
CENTRE (NOS.)
CF PLANT
S (MTPD)
Capacity
(TKGPD )
No.
Capacity
(TKGPD )
No.
AJMER 150 10 - 1 150ALWAR 150 10 - 20 1 BANSWARA 30 - - BARMER 50 2 BHARATPUR - - - - 50 2 150BHILWARA 150 - - - - 1 1 BIKANER 150 5 160 4 10 1 1 150CHITTORGARH
- - - - 30 - - -
CHURU 30 - 10 1 GANGANAGAR
100 10 60 2 70 3
JALORE 100 10 10 1 30 2 JAIPUR 300 15 50 1 375 5 1 JHALAWAR 20 - - - 40 3 - -JODHPUR 100 - 50 3 - - 1 150KOTA 50 - - - 20 1 1 NAGAUR 30 2 10 1 PALI 60 - 20 1 20 1 SIKAR 60 - 10 1 10 1 TONK/SWM 40 - 30 1 UDAIPUR 60 - - - 40 2 1 TOTAL 1550 60 440 17 765 26 7 600
TECHNICAL INPUT:
In addition to provision of regular and remunerative market for milk
to the farmers the dairy cooperative development programme also
provides input and services for promoting animal health and
production enhancement of milch animals
A. Animal Health Programme (AH)
Veterinary services like first aid, medical treatment and vaccinations
are being provided to the members by the milk unions.
· First aid is provided at the village at the DCS.
· Regular scheduled services are provided by mobile units and at
veterinary camps.
· Emergeny services provide veterinary care at the farmer's doorstep.
. B. Breed Improvement
1. Artificial Insemination Programme (AI): Artificial
Insemination Programme has been undertaken by RCDF. To supply
the frozen semen to the AI Centres of Milk Unions as well as to A.H.
Department, an ultramodern Frozen Semen Station is established at
Bassi which supplies the Semen of high pedigree exotic and native
breeds.
2. Natural Services (NS): Bulls of improved breeds are provided at
dairy cooperative societies where AI activities are not much feasible.
C. Cattle Feed
Balanced cattle feed is being manufactured by four cattle feed plants
viz. Ajmer, Bikaner, Jodhpur and Nadbai. The milk unions make
feed available to the farmers via village cooperative societies. The
available range of Cattle Feed are balanced cattle feed, high energy
feed, calf starter & Cattle feed supplements like Urea molasses
bricks (UMB) and Mineral mixture.
D. Fodder Development : Under the recent major input programme
the fodder development activities have been taken by RCDF through
which the major fodder crops and their seed is grown on Rojhri,
Bassi and Pal Farms and seed is supplied to the dairy farmers on no
profit-no loss basis. The major fodder crops are lucerne, oat, bajra,
barseem Sorghum Sudan Grass etc. The federation also procures
quality seeds from other agencies & provides them to the farmers.
TRAINING & EXTENSION: Eight milk unions viz Ajmer,
Bhilwara, Bikaner, Ganganagar, Jaipur, Jodhpur, Kota and Udaipur
are operating centres where training is provided for several area
related to DCS operations viz DCS secretary, Management
Committee member, AI workers, milk tester, first aid worker,
chairman orientation, dairy animal management and various
refresher courses etc. To enhance active participation of the producer
members in the DCS, to create awareness about improved animal
husbandry practices viz feeding, crossbreeding, animal management
and stimulate fodder production, extension activities are carried out
at DCS and at milk unions. Under farmer's induction & orientation
programme, visits to the dairy plants are arranged to demonstrate the
process & disposal of the milk collected from the producers.
Producers also taken to visit the model Indian dairy cooperative-
Anand Milk Cooperative Union (AMUL ) in Gujarat and they in turn
educate other milch animal owners in their area about the practices
and benefits of cooperatives. Audio-visual aids, field
demonstrations, extension camps are used to explain feeding,
breeding , fodder development and clean milk production practices.
AUTOMATION: The milk collection and testing systems at village
DCS have been automated with the installation of electronic milk
testers (EMT) and auto milk collection stations (AMCS). At present
9677 EMT & AMCS are operational at DCS level. Milk reception,
weighment and testing at dairy plants and chilling centres have been
modernized with the installation of Automated raw milk reception
Dock.
MILK PRODUCTION IN RAJASTHAN (000,MT)
S.NO. YEAR PRODUCTION1 1985-86 41462 1986-87 41683 1987-88 39114 1988-89 40365 1989-90 42176 1990-91 43397 1991-92 44748 1992-93 45869 1993-94 495810 1994-95 510311 1995-96 544912 1996-97 587313 1997-98 648714 1998-99 692315 1999-2000 726016 2000-2001 745517 2001-2002 771818 2002-2003 778919 2003-2004 8054
20 2004-2005 8310
21 2005-2006 8713
Source Integrated Sample Survey Report : Animal Husbandry Department, Rajasthan
CHAPTER – 3.
ABOUT SARAS & PRODUCTS
ABOUT SARAS:
The marketing activities of the Federation include providing support
to the Milk Unions in milk and milk products within and outside the
State. RCDF is presently marketing milk & milk products under
Saras brand :
Fresh milk of different compositions and long shelf life tetra pak
milk is being marketed in rural and urban areas. The Federation is a
major supplier of tetra pak milk (UHT) to the armed forces.
RCDF is also marketing various fresh milk products in Saras brand,
which are, Chhach, Lassi, Shrikhand, Flavoured Milk, Mawa, Paneer
and Dahi. Long life products such as Cow ghee, Ghee, Table Butter,
Dairy Whitener, Skim Milk Powder, WMP and Tetra Pak Milk (Cow
Milk, Taza Milk and Fit and Fine) are also being marketed.
Saras Milk Parlours serving a complete range of milk products are
operational at 442 points in Rajasthan. Presently Saras brand is
being marketed through a network of 17484 outlets
SARAS - PRODUCTS
The "Saras" range:
Fresh Milk
DTM
Toned
Standard
Full Cream
Skimmed
Long Shelf Life Milk- Tetra pak
Cow Milk
Toned Milk (Taaza)
Cow Milk
Fresh Milk Products
Chaach
Lassi
Dahi
Paneer
Shrikhand
Icecream
Rasgulla
Flavored milk
Mawa
Long Shelf Life Milk Products
Ghee
Cow Ghee
Table Butter
SMP
WMP
Cheese
Dairy Whitener
White Butter
Cattle Feed
Balanced feed
High energy
Mineral mixture
Calf starter
Urea Molasses Brick
(UMB)
SARAS - PRODUCTS PRICES
MRP. in Rupees (w.e.f. 10.10.2008 for Ghee)
PackingSize
Ghee Table butter
Ghee (cow)
TetraPackTaaza
Tetra pack Fit-n-
Fine
Tetrapack ExcelBrick
TetraPackExcelFino
Balanced Cattle Feed
High Energy
Mineral Mixture
Urea Mol. Brick
1/2 lt. Mono carton
109 - - - - - - - - - -
1 lt. Monocarton
215 - 220 - - - - - - - -
1 lt. Tin - - - - - - - - - -
15 kg tin 3225 - 3300 - - - - - - - -
100 gm - 19 - - - - - - - - -
500 gm - 92 - - - - - - - - -
25 Kg - - - - - - - - - 550 -
50 Kg - - - - - - - 392.5 430 - -
nos. - - - - - - - - - - 31
500 ml. - - - - - - - - - - -
1000 ml. - - - 31 29 32 31 - - - -
1000 gm - - - - - - - - - 26 -
5 lt. Tin 1075 - 1100 - - - - - - - -
15 Litre Tin
3000 - 3075 - - - - - - - -
Cattle feed rates are ex-factory price
QUALITY ASSURANCE OF SARAS
RCDF possesses a specialized central quality control labaratory
which monitors adherence to quality standards through random
sampling of milk, milk products, cattle feed, packing material etc.
Each dairy plant has its own laboratory to which RCDF staff
provides advise and technical support.
Established in the year 1990 the Central Quality Control Laboratory
in RCDF is engaged in monitoring the quality standards of milk and
milk products, packaging material, cattle feed and effluent treatment
so as to ensure their conformance with laid down respective
standards of P.F.A., B.I.S., Ag-mark and Pollution Control Board.
Ambit of activities cover all aspects right from collection of milk to
finished products by programme such as clean milk production, ISO-
9002 and HACCP-15000 certification. In addition to this all the
major milk plants and cattle feed plants too have their own
laboratories to ensure the QAP and TQM at first place.
Commitment to production of quality products has resulted in the
dairy plants at Ajmer, Alwar, Bhilwara, Bikaner, Ganganagar, Jaipur
& Udaipur being registered under ISO-9002 and HACCP-15000
systems.
GROWTH CHARTS:
CHAPTER – 4.
PERFORMANCE APPRAISAL
PERFORMANCE APPRAISAL
Performance appraisal (PA) is one of the important components in
the rational and systemic process of human resource management.
The information obtained through performance appraisal provides
foundations for recruiting and selecting new hires, training and
development of existing staff, and motivating and maintaining a
quality work force by adequately and properly rewarding their
performance. Without a reliable performance appraisal system, a
human resource management system falls apart, resulting in the total
waste of the valuable human assets a company has.
There are two primary purposes of performance appraisal: evaluative
and developmental. The evaluative purpose is intended to inform
people of their performance standing. The collected performance
data are frequently used to reward high performance and to punish
poor performance. The developmental purpose is intended to identify
problems in employees performing the assigned task.
The collected performance data are used to provide necessary skill
training or professional development. The purpose of performance
appraisal must be clearly communicated both to raters and ratees,
because their reactions to the appraisal process are significantly
different depending on the intended purpose.
Failure to inform about the purpose or misleading information about
the purpose may result in inaccurate and biased appraisal reports.
Critical Criteria of Developing a Pa System
In order for performance appraisal information to be useful, the PA
system must be able to consistently produce reliable and valid
results. Measurement items in the performance appraisal system
must be designed in such a way that the results of rating are
consistent regardless of the raters and the timing of the assessment.
Another critical criterion in developing a PA system is the validity of
the measurements. It is important to make sure that the appraisal
items are really measuring the intended performance or target
behavior. If they are not, the PA system encourages the wrong kind
of work behaviors and produces unintended, frequently negative,
organizational outcomes.
For instance, if the number of traffic violation tickets issued is an
item in performance appraisal of police officers, it encourages them
to sit on a corner of a street and pull over as many violators as
possible during heavy traffic hours. The true purpose of a police
force, which is public safety, may become secondary to issuing a
large number of tickets for many officers.
What to Evaluate
The first important step in developing a PA system is to determine
which aspects of performance to evaluate. The most frequently used
appraisal criteria are traits, behaviors, and task outcomes.
Traits. Many employees are assessed according to their traits, such
as personality, aptitudes, attitudes, skills, and abilities. Traits are
relatively easy to assess once a rater gets to know ratees.
But traits are not always directly related to job per formance. Trait-
based assessment lacks validity and thus frequently raises legal
questions.
Behaviors. For many jobs, performance is so broadly defined or so
conceptual in nature— such as ensuring public safety in the police de
partment—that it is hard to come up with reliable performance
measures. In such cases, desirable behaviors can be identified and
assessed in the belief that such behaviors lead to successful
performance. Such behavior-focused assessment encourages
employees to adopt desirable behavioral patterns in the workplace.
Task outcomes. When information about task outcomes is readily
available, it is the most appropriate factor to use in evaluating
performance. When an organization has a clear and measurable goal
as in the case of a sales force, this approach is recommended.
However, it has its own pitfalls. There is a problem if employee
behaviors are not directly related to the task out-come.
Too narrow a focus on measuring out-come only sometimes results
in unintended negative consequences. When sales staff narrowly
focus on target sales figures to increase their performance measure,
for example, they are encouraged to help a few large-volume
customers and to ignore many smaller buyers. This may result in
poor customer service on the floor.
Who Evaluates?
The most common raters of performance are employees' immediate
supervisors, who are usually in the best position to know and
observe the employees' job performance. They are also responsible
for employees' work.
Their evaluation is a powerful tool in motivating employees to
achieve successful and timely completion of tasks. However, as a
result of working together over a long time with the same
employees, the immediate supervisor may build up a fixed
impression about each employee and use it every time he or she has
to evaluate performance.
Some companies find that subordinates are in an excellent position
to observe and evaluate their managers' performance, especially
when it comes to measuring effective management of their
department. While there is merit in asking subordinates to evaluate
how they are managed, such evaluation may turn into a popularity
contest. Accurate and objective assessment may not be obtained if
employees are fearful of possible retaliation from their supervisors.
Anonymity of the evaluators is key to the successful use of
subordinates for objective evaluation.
Other raters who are frequently used in some companies include
peers, customers, and the employees themselves. Peer evaluation is
particularly useful when teamwork and collegiality are important to
successful task performance. Peer pressure is sometimes a powerful
motivator in encouraging teamwork among members.
Customer satisfaction is vital to a company's success and can be used
in performance appraisal. Many companies systematically collect
performance information from customers, typically through
anonymous surveys and interviews. Self-assessment is also a useful
means, especially when the performance appraisal is intended to
identify the training and development needs of potential employees.
Each of these raters contributes to assessing certain aspects of
performance. Since job performance is multidimensional in nature, it
is important to use different raters or a combination of multiple raters
depending on the goal of a performance appraisal system. This
multirater evaluation, or so-called 360-degree feedback system, is
becoming increasingly popular among many American corporations,
including General Electric, AT&T, Warner Lambert, and Mobil Oil.
Performance Appraisal Methods
To ensure the reliability and validity of a PA system, a company
must design the evaluation process carefully and develop appropriate
measuring scales. Among the many assessment methods developed
by human resource management experts, commonly used ones
include the Graphic Rating Scale, Behaviorally Anchored Rating
Scale, Narrative Technique, Critical-Incident Method, Multiperson
Comparison Method, Forced Choice Method, and Forced
Distribution Method.
The Graphic Rating Scale is the simplest and most popular method
for performance appraisal. As shown on Figure 1, the Graphic Rating
Scale offers a list of areas related to job performance. A manager
rates each employee on the listed areas according to a numerical
score.
Although this method is relatively simple and quick to complete,
some experts question its validity and reliability. Without elaborate
description, appraisal items and scores are subject to various
interpretations of raters.
In order to overcome pitfalls of the Graphic Rating Scale, numerous
other methods have been developed. The Behaviorally Anchored
Rating Scale (BARS), illustrated in Figure 2, offers rating scales for
actual behaviors that exemplify various levels of performance.
Because raters check off specific behavior patterns of a ratee, PA
results of BARS are more reliable and valid than those of the
Graphic Rating Scale. Human resource managers must carefully
analyze each job and develop behavior patterns pertinent to various
levels of performance for the job before they use the BARS.
The Narrative Technique is a written essay about an employee's job
performance prepared by a rater. The essay typically describes the
rate's job-related behaviors and performance. Without standard
performance description, it is a cumbersome task for raters to write
an essay for several employees. For example, a rater can be asked to
describe the activities, achievements, and level of performance of the
employee in a completely open-ended format (unstructured
narration).
Alternatively, the rater can be pro vided with some structure to use in
the evaluation; for example, "Describe briefly the activities,
achievements, and level of performance of the staff member in the
following areas: (1) work habits, (2) planning and organizing the
tasks, (3) management skills, communications, and development of
others."
The performance review form at a college asks an evaluator to
describe the activities, accomplishments, and creative works of the
professors in the areas of (1) teaching and (2) research/creative
activity. A dean of the college writes about the professor's teaching
performance: "Dr. Michael Johnson has been nominated by his
students for the Outstanding Teacher Award several times during his
service.
He introduced many teaching innovations into his classes. His
teaching record is exemplary." In the area of creative activity, the
dean writes: "Dr. Johnson has a strong and productive research
record with a defined focus in organizational leadership. His research
has been recognized with several awards given by professional
organizations. His creative activity is exemplary."
Similar to the Narrative Technique is the Critical-Incident Method,
which involves keeping a running log of effective and ineffective job
performance.
For example, the PA log of an employee, Mr. Campbell, contains
Unsatisfactory Incidents as follows: 1/28/2000: "Refused to try a
new work procedure," and 2/15/2000: "Argued with a customer
about the origin of error in the paperwork."
The log also contains Satisfactory Incidents as follows: 1/20/2000:
"Volunteered to help Charlie complete his assignment in time";
2/19/2000: "Trained new employees in safety regulations."
The Multiperson Comparison Method asks raters to compare one
person's performance with that of one or more others. It is intended
to effectively eliminate the possibility of giving the same rating to all
employees. In order to separate performance scores among multiple
employees, the Forced Choice or Forced Distribution Methods are
adopted. Raters must choose one high performer from the list of
employees or distribute certain scores to employees at different
ranks. For example, only one top person will get 40 percent, two
second-rank persons 20 percent, and the bottom one person 10
percent. The Paired Comparison Method is a special case of the
Multiperson Comparison Method.
Everyone in the evaluation pool is compared against everyone else
as a pair and recorded "plus" or "minus" when the target ratee is
better or worse, respectively, than his/her comparison. The final
performance ranks are determined by the number of positives.
Subjectivity and Objectivity
Accuracy is critical to performance appraisal. In order to obtain
accurate performance information, raters must provide objective and
unbiased ratings of employees. But, because it is almost impossible
to develop a perfectly accurate performance checklist, managers'
subjective opinions are frequently called for. Many companies use
some combination of subjective and objective assessment for actual
performance appraisal. Yet there are numerous problems in the
actual assessment of employee performance, mainly due to rater
bias. Some raters tend to rate all employees at the positive end rather
than to spread them throughout the performance scale; this is called
"leniency." Alternatively, "central tendency", which places most
employees in the middle of the scale, also raises concern about
possible appraisal error. Another common error in performance
appraisal is the halo effect. This occurs when a manager's general
impression of an employee, after observing one aspect of
performance, influences his/her judgment on other aspects of the
employee's performance.
Researchers have found that personal preferences, prejudices,
appearances, first impressions, race, and gender can influence many
performance appraisals. Sometimes raters' personal opinions or
political motives creep into the performance appraisal process.
They intentionally inflate or deflate performance ratings of certain
employees as a way to punish them or promote them out of the
department. Using unreliable and unvalidated performance
appraisals may cause a legal problem. A number of court cases have
ruled that the performance appraisal systems used by many
companies were discriminatory and in violation of Title VII of the
Civil Rights Act.
In order to avoid legal problems, companies must develop an
appraisal system based on careful job analysis and establish its
reliability and validity. They must give clear written instructions to
raters for completing evaluations and provide them adequate training
if necessary. The company must allow employees to review the
results of the appraisals. Human resources departments must play a
key role in the development and implementation of an effective
performance appraisal system.
CHAPTER -5.
EMPLOYEE WELFARE DESIGN
EMPLOYEE WELFARE DESIGN
This information will be helpful to you if:
An employer does not have any employee welfare benefit plans and
wants to know how to approach the task of designing the most
appropriate plan or plans; or The employer has at least one employee
welfare benefit plan and is not sure if it is the right plan.
Who Is To Benefit?
The first step in employee welfare benefit plan design is to determine
who the employer intends to benefit and why. The scope of coverage
and the employees who are to be covered by the plan will be the first
limiting factor in the number of alternatives available because of the
nondiscrimination rules in the Code. For example, if the plan is to
cover a select group of executives, it may not be possible to provide
the benefit on a tax-favored basis. On the other hand, if the plan is to
be a broad-based plan covering executives and rank-and-file
employees, then many alternatives are available on a tax-favored
basis. Determining the scope of coverage in the proposed employee
welfare benefit plans also involves identifying which employees
must be covered.
The nondiscrimination rules applicable to each type of welfare plan
typically require coverage of a sufficient number of non-highly
compensated employees versus highly compensated employees.
If the employer is a member of a controlled group or an affiliated
service group, these rules also require that the employees of all
members of the group be taken into account when testing for
nondiscrimination. Leased employees must also be taken into
account. Therefore, a complete and accurate census must be prepared
when determining who to benefit and will also be key in the
following steps for plan design.
What Benefits Will Be Provided?
The question of what benefits will be provided goes hand in hand
with the question of who is to benefit under the welfare benefit
plans. The most typical employee welfare benefit plans are the
following:
1. Medical
2. Prescription drugs
3. Dental
4. Vision
5. Death
6. Disability
7. Dependent care
8. Educational assistance
9. Severance
How Will The Benefits Be Provided?
Employee welfare benefits can be provided from the employer's
general assets, from a trust, through insurance, or through a
combination. The approach used may cut down on the
nondiscrimination rules and reporting requirements that apply. For
example, medical benefits that are provided through insurance are
not subject to any nondiscrimination rules whereas self-insured
medical benefits are.
Who Will Administer The Benefits?
Each employee welfare benefit that an employer provides requires
some level of administration. The employer must determine what is
required and who is going to handle it. Will it be handled internally?
Through an insurance broker? By a third party administrator?
How Much Will The Benefits Cost?
The employer's cost of the benefits to be provided will be a function
of what level of benefits are going to be provided, who is going to
pay for the benefits (see below), and how they are going to be
provided. For example, an insured medical plan with a $500
deductible is going to be more expensive than the same plan with a
$1,000 deductible. Or, a small employer may find that providing
dental benefits on a self-insured basis is more expensive than
insuring such benefits, while a large employer may find just the
opposite to be true.
Who Will Pay For The Benefits?
Employee welfare benefits can be provided by the employer paying
all of the costs, by the employees paying all of the costs, or through a
combination of employer and employee contributions. For example,
a frequent plan design for medical benefits is for the employer to pay
for the employee's coverage and the employee to pay for coverage
for the employee's spouse and dependents.
If the employees are going to pay for any portion of the cost, are the
employees going to pay their share on a pre-tax basis or an after-tax
basis?
If they are to pay their share on a pre-tax basis, then the employer
will need to have a cafeteria plan so that the employees can reduce
their compensation in order to purchase the desired benefits.
How Many Plans Will There Be?
An employer can design its plans so that each is a separate plan
requiring its own summary plan description with its own reporting
obligations. Alternatively, an employer can combine two or more
plans into a single plan in which case only one summary plan
description is required and only one Form 5500 needs to be filed.
EMPLOYEE EMPOWERMENT
Empowerment is simply gaining the power to make your voice
heard, to contribute to plans and decisions that affect you, to use
your expertise at work to improve your performance and with it the
performance of your whole organization.
1. Food processing in India is a great industry offering potential
employment opportunities to the people at large.
2. Since one got aware with the food industry, the way of food
products availability and the hygiene maintain at the time of
manufacture and distribution.
3. One also been educated there the 24hr clean, healthy atmosphere
and a definition of qualitative service can be best defined there.
4. A Distinctive life style, better than the best services and
improving the momentum to serve the customer as prompt
possible are few pre-requisites.
CHAPTER – 6.
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
Research Methodology: A research is a process of providing relevant
guidelines for necessary reading of market scenario with respect to the
objective for which survey is requires to be carried out with the help of
Questionnaire. Keeping the objective of PERFORMANCE APPRISAL in
mind it was decided to carry out a survey among the personnel and human
resources appointed in the prestigious SARAS Dairy in Jaipur.
Research Instruments
Questionnaire: Research was done with the help of questionnaire. There
were two types of questions.
1. Closed ended questions
2. Open ended questions
Closed ended questions included answers of objective type only in which
either a choice from the few alternatives was to be chosen.
Sampling techniques: - there are usually two techniques of sampling being
taken – Random sampling and systematic sampling. I have adopted
systematic sampling for the conduct of the survey.
Sample Size: The sample size was 35 individuals consisting of executives
and employees for the purpose of conducting a small general survey
pertaining questionnaire for generating necessary conclusive evidences.
CHAPTER 7.
DATA ANALYSIS & INTERPRETATION
DATA ANALYSIS & INTERPRETATION
Analysis: - It was inferred from the internal survey to the
organization that out of 35 employees: Freshers were 6, Working for
over an year were 20 and Well Experienced were 9
17%26%
57%
Fresher Working for over an year Well Experienced
Q.2 Are you available with necessary training & development?
Analysis: - It was depicted that life insurance advisors are providing with
necessary training & development pertaining to existing products/policies by
11 advisors, Pertaining to customer relationship & selling policies: 12,
pertaining to new product updation: 9 and No by 3 surveyed advisors.
Q.3 What is the basis of performance measurement and appraisal in
your organization?
Analysis: Further it was also analyzed that the performance measurement
and appraisal in the organization being adopted as: Grading system: 5,
Ranking system: 8, BARS system: 4 & Performance – Point allocation: 18
Q.4 Are you satisfied with the way of behaviour and conduct of senior
level management with you?
Analysis: Satisfaction with the way of behaviour and conduct of senior level
management with the advisors analyzed as follows: Yes by 19 majority of
advisors, No by 10 and To some extent by 6 life insurance advisors.
Q.5 What satisfy you most?
Analysis: Most derivable Satisfaction factors for the employees as been
depicted below:
Reputation of the company: 4 Higher Commission: 8
Rewards & Recognitions: 9 Environment and Ambience: 7
Freedom to work: 7
Q.6 What dissatisfy you most?
Analysis: Most derivable dissatisfaction factors for employees as been
depicted below:
Negative attitude of customers: 16 Private – Public myth: 7
Non-supportive colleagues & staff: 3 No permanency:5
No fixed salary: 4
Q.7 Do you agree that cordial nature of management as well as infusion
of new skills and strategies being imparted time to time will lead to
augmentation of efficient performance?
Analysis: - It was agreed by 27 wide majority of employees that that cordial
nature of management as well as infusion of new skills and strategies being
imparted time to time will lead to augmentation of efficient performance
where mere 2 said no and 6 favored to some extent
Q.8 How often the performance is evaluated?
Analysis: - it was analyzed that performance evaluation of employees was
undertaken as Weekly to 2 employees, Monthly to 5, Quarterly to 24 and
remaining 4 employees to Yearly
Q.9 Your performance till date is:
Analysis: - performance till date as achieved by the respective questioned
employees for the purpose of their performance Evaluation were as
respectively Higher: 15, Substantial: 5, Rising: 7 and Improving: 8
Q.10 Do you agree that for augmenting performance and efficiency it is
necessary:
Analysis: - for augmenting performance and efficiency it is necessary to
raise monetary incentives and shower non-monetary incentive for achieved
performance depicted by 13 employees where as Impart necessary skills and
knowledge pertaining to work procedure by 9. Raise the level of confidence
and trust in employees via motivation [5] and To make the corporate
atmosphere more amicable and positive by
CHAPTER 8.
FINDING & SUGGESTION
FINDINGS & SUGGESTIONS
In SARAS, I found:
1. that the industry offering its best services and opportunities in
every sphere,
2. that the employees working in, are satisfied with their jobs as well
as treatment of the superior organizational members,
3. that employees are loyal towards the organization resulting
enriched and considerable working experience.
4. that despite being simply graduated, by maintaining their healthier
working experience many of them have been promoted by their
hard work and creative expertise.
5. that the management control over the lower management and
supervisory section is medium and not high because of the fact
that employees are enough to handle their tasks and
responsibilities fairly and honestly.
6. that the Daily reporting to the Superior by the corresponding
subordinate employee of maintained so as to judge the
comparative performance of the particular day
CHAPTER 9.
CONCLUSION
CONCLUSION
At the end of the report, I would like to put my words with utmost
delight that what I found in SARAS while fulfilling my objective
was that the employees are serving in a very amicable leading o
serving the objectives to their fullest advantages to the organization.
The employees are being provided with proper training and
development and their performance appraisal is being undertaken at
frequent levels leading to judge the value of human personnel
employed therein.
Therefore what I found after evaluated performance of selected 35
employees working in the organization that they must be more
equipped with the working amenities and new technological know
how and must be well trained and developed to strengthen
themselves in dealing each and every query and problems of the
customers and hence must make their sales as desired for the
beneficial to the customers and the company as a whole.
In my study I draw the conclusion that employees are getting
acquainted with work frequently and the behaviour of their bosses
are cooperative and more as advisors. Since food industry is rising
followed by a good competition despite the company is performance
extensively well in all over Rajasthan and some locations like in
Delhi, Haryana etc.
CHAPTER 10.
BIBLIOGRAPHY
BIBLIOGRAPHY
In order to obtain more information regarding the present study and to
substantiate it with theoretical proof, the following references were
made: -
Books: -
1. Human resource & Personnel Management –CK Awasthi
2. Performance Management and Appraisal systems – TV Rao
3. Human resource and Personnel management – Aswathappa
Magazines & Newspapers
The times of India
Business World
The Hindu
Website references :
www.sarasmilkfed.coop
www.ibef.org
CHAPTER 11.
ANNEXURE
ANNEXURE - QUESTIONNAIRE
NAME OF THE EMPLOYEE: ________________________________
DESIGNATION: ___________________________________________
JOB ASSIGNMENT: ________________________________________
AREA/ DEPARTMENT OF WORKING
Q.1 Are you a
Fresher
Working for over an year
Well Experienced
Q.2 Are you available with necessary training & development for
enhancement of your performance?
Pertaining to existing products/policies
Pertaining to customer relationship & selling policies
Pertaining to new product updation
No
Q.3 What is the basis of performance measurement and appraisal in
your organization?
Grading system
Ranking system
BARS system
Performance based Point allocation
Q.4 Are you satisfied with the way of behaviour and conduct of senior
level management with you?
Yes
No
To some extent
Q.5 What satisfy you performance most?
Reputation of the company
Higher Commission
Rewards & Recognitions
Environment and Ambience
Freedom to work
Q.6 What dissatisfy you performance most?
Negative attitude of customers
Private – Public myth
Non-supportive colleagues & staff
No permanency
No fixed salary
Q.7 Do you agree cordial nature of management as well as infusion of
new skills and strategies being imparted time to time will lead to
augmentation of efficient performance?
Yes
To some extent
No
Q.8 How often the performance is evaluated?
Weekly
Monthly
Quarterly
Yearly
Q.9 Your performance till date is:
Higher
Substantial
Rising
Improving
Q.10 Do you agree that for augmenting performance and efficiency it is
necessary:
Impart necessary skills and knowledge pertaining to work procedure.
Raise the level of confidence and trust in employees via motivation
To make the corporate atmosphere more amicable and positive
To raise monetary incentives and shower non-monetary incentive for
achieved performance
Other associated comments:
1. ________________________________________________
2. ________________________________________________
3. ________________________________________________
4. ________________________________________________
DEEPIKA SINGHAL
SARAS