Regd.No. 110287302060
A Study on “PERFORMANCE APPRAISAL SYSTEM”
With reference to DELTA PAPER MILLS LIMITED VENDRA. A project report submitted to the Department of Commerce & Management Studies Andhra University, Visakhapatnam in Partial fulfillment for the Award of the Degree of
Master of Business Administration Submitted by
J.V.M. LAKSHMI Under the Guidance of
Mr.V.VANU,M.B.A,M.PHIL (Faculty Member,M.B.A. Programme)
Department of Management Studies Sree Rama Institute of Management (Affiliated to Andhra University) TANUKU 2010-2012
1
. CERTIFICATE This is to certify that the project report entitled “A STUDY ON “PERFORMANCE APPRAISAL SYSTEM”” with reference to DELTA PAPER MILLS LIMITED VENDRA, Submitted by J.V.M. LAKSHMI Final M.B.A, Regd No: 110287302060 in the partial fulfillment of the requirement for the award of the degree of “MASTER OF BUSINESS ADMINISTRATION” Andhra University, Visakhapatnam, During the academic year (2010-2012).
V.VANU
P.SRINIVAS
M.B.A, M.Phil
M.B.A,
M.Phil (Ph.D)
Project Guide Department
Head of the
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CONTENTS CHAPTER-I
Page no
INTRODUCTION
1
NEED FOR THE STUDY
3
IMPORTANCE OF THE STUDY
4
OBJECTIVES OF THE STUDY
5
METHODOLOGY
6
LIMITATIONS
8
CHAPTER-2 INDUSTRIAL PROFILE
10
CHAPTER-3 COMPANY PROFILE
20
CHAPTER-4 CONCEPT OF PERFORMANCE APPRAISAL SYSTEM
32
CHAPTER-5 DATA ANALYSIS & INTERPRETATION
55
CHAPTER-6 FINDINGS & SUGGESTIONS
74
CONCLUSION
76
BIBLIOGRAPHY ANNEXURES
3
INTRODUCTION Human Resources Management: Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. Human
resource
management (HRM)
is
the strategic and coherent approach
to
the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. [1]
The terms "human resource management" and "human resources" (HR) have largely
replaced the term "personnel management" as a description of the processes involved in managing people in organizations.[1] In simple words, HRM means employing people, developing their capacities, utilizing, maintaining and compensating their services in tune with the job and organizational requirement.
Human Resources Development: Human Resource Development (HRD) is the framework for helping employees develops their personal and organizational skills, knowledge, and abilities. Human Resource Development includes such opportunities as employee training, employee career development, performance management and development, coaching, mentoring, succession planning, key employee identification, tuition assistance, and organization development.
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The focus of all aspects of Human Resource Development is on developing the most superior workforce so that the organization and individual employees can accomplish their work goals in service to customers. Human Resource Development can be formal such as in classroom training, a college course, or an organizational planned change effort. Or, Human Resource Development can be informal as in employee coaching by a manager. Healthy organizations believe in Human Resource Development and cover all of these bases.
Performance Appraisal System: Performance appraisal refers to all the formal procedures used to evaluate an individual, his contributions and potential. In other words, it is to plan and measure the performance of an individual in terms of the requirement of the job or it is a process of finding out how effective the organization has been at hiring and placing an employee. Performance appraisal is a formal system of review and evaluation of individual or team task performance. While evaluation of team performance is critical when teams exist in an organization, the focus of performance appraisal in most firms remains on the individual employees. Regardless of the emphasis, an effective appraisal evaluates accomplishments and initiates plans for development, goals and objectives.
Company: The Delta Paper Mills Limited was established as a public limited company on 23r may 1975. Late Sri BH.Vijay Kumar Raju and Andhra Pradesh Industrial development corporation (APIDC) on 18th September 1975 promoted the Delta Paper Mills Limited; the company started its commercial production on 7th April 1977. In 1978 the initial production capacity was 30 tones per day. In 1986, Delta paper mills Limited under took an expansion project to double its capacity to 60 tones per day. Now the capacity of the plant is 115 tones per day.
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NEED FOR THE STUDY Appraising the performance of individuals, groups and organizations is a common practice of all societies. While in some instances these appraisal processes are structured and formally sanctioned, in other instances they are an informal and integral part of daily activities. Consciously of unconsciously evaluate our own actions from time to time. In social interactions, performance is conducted a systematic and planned manner to achieve widespread popularity in recent years. Performance appraisal is essential to understand and improve the employee's performance through HRD. In fact, performance appraisal is the basis fore HRD. It was viewed performance appraisal was useful to decide upon employee promotion / transfer salary determination and the like. But the recent developments in human resources management indicate that performance appraisal is the basis for employee development. Performance appraisal indicates the level of desired performance level, level of actual performance and the gap between these two. This gap should be bridged through human resources development techniques like training executive development etc. According to the past survey it was noticed that the performance appraisal system in this company was not up to the mark. Hence there would be scope for giving few suggestions as per my knowledge to improve the performance appraisal system which was quite essential for the better performance of the employees.
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IMPORTANCE OF THE STUDY Performance appraisals provide employees and managers with opportunities to discuss areas in which employees excel and those in which employees need improvement. Performance appraisals should be conducted on a regular basis, and they need not be directly attached to promotion opportunities. Personal Attention During a performance appraisal review, a supervisor and an employee discuss the employee's strengths and weaknesses. This gives the employee individual face time with the supervisor and a chance to address personal concerns. Feedback Employees need to know when their job duties are being fulfilled and when there are issues with their work performance. Managers should schedule this communication on a regular basis. Career Path Performance appraisals allow employees and supervisors to discuss goals that must be met to advance within the company. This can include identifying skills that must be acquired, areas in which one must improve, and educational courses that must be completed. Employee Accountability When employees know there will be regularly scheduled evaluations, they realize that they are accountable for their job performance. Communicate Divisional and Company Goals Besides communicating employees' individual goals, employee appraisals provide the opportunity for managers to explain organizational goals and the ways in which employees can participate in the achievement of those goals.
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OBJECTIVES OF THE STUDY
•
To study the need and importance of “Performance Appraisal”.
•
To portray the profile of “Delta Paper Mills”.
•
To study the performance appraisal implementation in delta paper mills.
•
To make data analysis and interpretation based on the perception of the employee in the organization.
•
To summarize and find certain suggestions for the impotent of Performance Appraisal system in the company.
8
METHODLOGY OF THE STUDY After the objective of the study has clearly stated, the next step in formal research project is to determine the source from which the data is required to be collected. The data collection is an interesting aspect of the study achieving data effectively the information consists of two types of data. The diagram is as follows:
Data collections: a) Primary data: The primary data are those, which are collected freshly and for the first time, from the employees directly. It is collected through the following methods. 1. Questionnaire: A structure of questionnaire was prepared and distributed among the employees & workers. 2. Interview:
Personal
interviews
and
interaction
with
the
employees
and
contractor labour. 3. Observation: By observing the working environment.
b)Secondary data: The secondary data are those which have already been collected by someone or else which have been passed through statistical process. Sources of secondary data can be categorized into two broad categories named published and unpublished statistics. Various sources are available namely books, synergies monthly (Chakaravahini) books etc. and also collected from various files, records and synergies casting Ltd.
9
Size: A sample of 40 employees has been selected .Although it looks to be a small sample keeping in view the large number of employees it has to be limited because of time constraint(8 weeks).Even then the sample size is not considered to be small. It is enough to draw conclusions.
Type: Since employees from all levels (strata) namely the top level, the middle level, and the lower level are bound to experience stress, the sample has to include employees from all levels. Stratified random sampling technique was selected while preparing questionnaire as this was the only technique that helped to draw conclusions accurately.
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LIMITATIONS OF THE STUDY
As the study revolves around the performance appraisal of human resources aspects the overall organization performance cannot be ascertained. In spite of giving honest and sincere efforts there are several limitations, which are as follows: The period of study is only for about 2months, which is a major constraint.
The perception bias or attitude of the respondents may also act as hurdles to the study. The study is only confined to performance appraisal. The study cannot be oriented with all HRM practices followed by DELTA PAPER MILLS Ltd. because of the paucity of time requirements. The sample size taken for the research is small due to the constraint of time.
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CHAPTERIZATION
The first chapter deals with introduction to the topic and to the
company and it also consists of Need for the study, Objectives of the study, Methodology, and Limitations.
The second chapter consists about the organization profile and
about the company profile of DELTA PAPER MILLS.LTD, VENDRA.
The third chapter consists of Theoretical frame work of
PERFORMANCE APPRAISAL SYSTEM.
The fourth chapter consists of Analysis and Interpretation of the
study.
The fifth chapter consists of Summary, Findings, and
Suggestions.
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INDUSTRY PROFILE Development of Paper: Etymologically the word “paper” owes its origin to “Papyrus” (cypress Papyrus), a plant that grew in abundance in the delta of Egypt. The barks and leaves of this plant were woven and pressed into a sheer to be used as writing material by ancient Egyptians (3000BC). There is a degree of consensus that the art of making paper was first discovered in china and its origin in that country is traced back to 2nd Century. In about 105 A.D. T’saiLun, an official attached to imperial court of China, created a sheet of paper using Mulberry and other best fibers along with fishnets, old rags and hemp waste.(2nd Century B/C) Chinese considered paper a key invention and kept this a closely guarded secret for over five centuries until the technology slowly made it way westward. Chinese city containing a paper mill in the early 700’s and from this started their own paper making industry (Early 700’s). Note: - Arabs named paper as “KAGAZ” a name that continues to remain prevalent in India invention of printing I 1450’s brought a vastly increased demand for paper. Paper was first made in England in 1496. The first U.S. Mill was built in 1690, the written house mill, Germany town, Pennsylvania.
Development of Paper Machine: 1801: Development of paper machine was led by the two four Drinier Brothers, Henry and seau, who in 1801, about 1/3 interest in the British patent rights of Roberts machine. They hired Bryan Donkin who took three years to develop first practical paper machine, which was in operation at two water mill, Hertz, England in 1804. Don kin’s company continued to manufacture and improve the four-Drinier machine for many years. His company supplied most of the early four-Drinier machines 9throughout the world. 13
1809: At about the same time John Dickinson, a colleague and friend of Donkin, was working on his cylinder machine, which was refined by 1908. Infect both Dickinson and Donkin contributed important idea to each of these machines: 1825: The two brothers John and Christopher Philips of Kent country patented the Dandy roll in 1825. 1826: M.Canson of Annonay, France put a suction box under the wire of his four Drinier machine in 1826, as had already been on cylinder machine, but on cylinder machine, but kept this as a secret With the invention of paper machine, the amount of paper that could be produced was soon limited by the fiber supply since cotton was the main constituent of paper.
Mid 19th Century: During the mid 19th Century the technology for converting wood into pulp was developed, with a plentiful supply of pulp available the amount of paper production was then closely related to improvements in paper machine speed. Thus availability of writing material as always gone hand in hand with the development of the society.
Development of Paper Industry In India:
The art of making paper reached in India though Arabs who initially learnt it from Chinese prisoners when they raided parts of china. Some Indian Muslims might have also learnt it directly when they visited Mongolia.
14
The art of making paper was kept a fairly guarded secret by few families that initially learn it. These papermaking families were known as “KAGZIS”. These kagzis were largely settled in Punjab and Kashmir and flourished under the patronage of Moguls Empire. The adoption of the art of papermaking could not be widespread in India because Hindus, which constituted a large majority of population, did not like handling of rags and other materials essentials to paper making. Paper forms basic material for written communication. The need for paper was felt because human capability to memories the accumulating wealth of information and knowledge was limited. The limitation was over come by early Aryans settled in north India by the use of “TamraPatra”(Copper plates), Talapatra etc., At the need for writing surface increased in India, attention was paid to master the techniques of putting metals such as lead, copper and bronze to increased use in this regard. The records suggest that before the advent of machine made paper a sizeable hand made paper industry flourished in India. Paper was observed to be in common use almost all over India at the close of Akbar’s region.
Paper Classification and Uses: According to the use of paper it may be broadly classified into two
categories.
1. The products, which are used for writing and printing, wrapping, packaging. 2. The products, which are comparatively thicker and stiffer for the purpose of packing, decorating etc. this paper called as board.
Writing Paper: Writing paper is a general trade term used to indicate all papers intended to be written upon. The quality requirements for such kind of papers are hard size, smooth finish and low transparency. 15
Example:- Cream wove, Cream laid, Azure laid etc. Use:- For such tools as exercise books, account books, Loose-leaf binders, registers, letterheads and office forms.
Printing Paper: It is a comprehensive tem used by printers for the innumerable varieties of paper suitability for many process of production. In general a printing paper should be a good shade, migrate size and opaque. Examples:- Maplitho, Offset, Parchment, Photocopier etc.
Wrapping Paper: The basic requirement of wrapping paper as that it should be able to fulfill its task of wrapping, to contain and protect. Therefore essential requirement of this paper is its strength. Example:- Poster, Tea yellow, Manila etc.
Packaging Paper: This category of paper includes Kraft Paper, Linear, media etc. The basic purpose of this paper is to pack various commodities.
Specialty Paper: This paper is specialized to serve a particular purpose. Some of the specialty papers include Bond paper, MICR, Electrical, Greaseproof, Tissue, Cigarette Paper, etc.
Board: It is a general term for stiff and thick papers of 200 GSM and above. Some of the paperboards include strawboards, millboard, duplex, triplex, etc.
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Sickness of the Small Paper Units: Though there are large numbers of small paper units, many of them are facing the problems of sickness such as absence official recovery plant, absence of effluent treatment facilities etc. Because of these problems small paper mill find it difficult to the produce quality paper at low cost. On the other hand, large paper mills have better equipment and have competitive advantage over small unit. As a result small paper units unable to compete with larger units. The sickness of small paper mills were mainly due to: ♦
High cost of production and low rate of return.
♦
Severe competition in this industry.
♦
Ultimate increase in cost but stagnant price of paper and paperboard.
♦
High rate of interest of loans from financial institutions.
♦
Increasing if electricity and water charges.
♦
Non-availability of raw materials in production time.
♦
Non-availability of coal in required quality and quantity.
♦
Cluster of mills in particular region, which resulted in demand of raw materials.
Success Factor for the Indian Paper Industry: The success for the Indian paper industry in the medium and long term will be: Access to quality and competitive fiber. Modern technology for improved product quality. Improved cost competitiveness to meet International competition. More focused business and product mix approach, emphasizing the core strength of each approach.
17
Working with along the above lines would pre-conceive plenty of joint effort with in the paper industry itself, between the industry and the Government as well as between the industry and its financiers.
Outlook for the Indian Paper Industry: The Paper Industry is observed to be in the down turn cycle and the realization is already under severe pressure. Further, the industry is likely to face stiff competition from the overseas suppliers too considering the cheaper products being already imported by may other segments. While the growth in paper consumption is moderate at the level of approximately 3 to 4 %, it is not going up in consonance with the demand growth in other sectors like information technology etc. Moreover, the treats of cheaper imports make it imperative that the Indian companies will have to strive hard to strive hard to improve the quality and productivity and become cost effective with a view to combat competition from imports.
TABLE- 2.1 DEAMED FOR PAPER & PAPER BOARD IN INDIA YEAR
CULTURE PAPER
INDUSTRIAL PAPER
TOTAL
1995-96
1.32
1.54
2.86
1996-97
1.39
1.64
3.03
2000-01
1.68
2.11
3.79
2001-02
2.00
2.50
4.50
2002-03
2.75
3.25
6.00
2003-04
3.20
3.90
7.10
2004-05
4.00
4.50
8.50
2005-06
4.75
5.50
9.50
2006-07
5.00
5.75
9.75
18
(Expected)
A finish consultancy firm, in its recent study of world market for paper and Board has forecast the growth in capita consumption and demand for paper and paperboard in India, as shown in the following table.
TABLE-2.3 DEMAND FORECASTE FOR PAPER AND BOARD IN INDIA 1993
2000
2005
2011
Population (million)
901.46
102.36
111.03
119.32
Per capita consumption (kg)
3.20
4.40
5.20
6.20
Paper and Board demand
2.92
4.50
5.80
7.35
(Million tones)
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TABLE-2.4 DEMAND SUPPLY SCENARIO FOR PAPER &PAPER BOARD (MILLIONTONES) YEAR NEWSPRINT P & W INDUSTRIAL PAPERS Demand as of 1995
0.69
1.24
1.33
Demand by 2000
0.01
1.95
1.74
Demand by 2005
0.99
2.45
2.36
Production in 1995
0.40
1.27
1.33
Additional Capacity
0.51
0.86
0.52
0.74
1.48
1.29
0.25
0.65
0.52
0.26
0.65
0.52
0.49
0.84
0.77
Build up required by 2000* Additional capacity Build up required by 2005* Additional capacity Build up in various Stages of implementation Additional Capacity Build up in various Stages of implementation Additional capacity
TABLE-2.5 The price paper increased gradually during the period 1992- 1996 was as in 1997 it is decreased. Major Players
Capacity in TPA 20
Product mix
AP Paper Mills
1,53,500
Cream wove, Maplitho, Kraft
Ballarpur Industries
1,98,368
Maplitho, Cream Wove, Bond, Others
Hindustan Paper Corp
2,00,000
Cream Wove
ITC Bhadrachalam
3,00,000
Duplex board, Maplitho, Kraft
JK Corp
75,500
Maplitho, bond, board, Security paper
Orient Paper & Industries
1,61,000
Cream Wove, Kraft, Maplitho, duplex
Sinar Mas
1,10,000
Coated writing, and Printing paper
West Coast Paper Mills
1,19,750
Cream Wove, Maplitho, Kraft, MG Pos.
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TABLE- 2.6 PAPER PRODUCTION OF TOP TEN COUNTRIES PAPER BOARD PRODUCTION COUNTRY
(Metric tones)
U.S.A
80,000,000
CANADA
19,000,000
JAPAN
29,000,000
CHINA
19,000,000
GERMANY
14,200,000
FINLAND
9,200,000
SWEDAN
8,400,000
FRANCE
7,600,000
ITALY
6,600,000
UNITED KINGDOM
5,200,000
INDIA
3,500,000
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COMPANY PROFILE Introduction: The DELTA PAPER Mills Ltd., Located at VENDRA village near BHIMAVARAM of WEST GODAVARI Dist in A.P is one of the and at the same time most modern paper units in the Country today.
History: The mill initially started 1975 by SRI B.H VIJAYA KUMAR RAJU garu and had tone into commercial production in 1978 The Krishna, Godavari delta known as the rice- bowl of Indian and more particularly W.G.Dist comes under the well known networks of canal from the Godavari Anacut. Almost all parts of the district have wet land. Cultivation with to paddy, crops per year since paddy straw can be used to the 60% of the total raw material of delta paper mills and as it also is the most economical of all the available inputs, one could not have asked suitable location. Other raw materials such as gunny waste , cotton lintels and waste paper are produced easily from Rajahmundry, Vizag, Eluru, Vijayawada and Hyderabad in A.P. Since the company as well connected by broad gauge railway lines, the factory as not in the past experienced any problem in producing these raw material. Coal needed boil the pulp solution is obtained from the nearly singarni coal mines which situated A.P. itself. The lad and other chemicals need in water purification are available with coal mines, which are situated about 200 km from the site. Fortunately, the factory is situated in the proximity of the electrolytic castic-soda and chlorine plant of the Andhra sugars limited, Kovvur which is hardly 60 k.m from the plant bournt lime could be produced from pidiguralla of dronchalam lime store belt in A.P. However Udaipur in rajastan is the only source of Talcum powder which is another chemical required for any paper –plant.
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The Delta Paper Mills Limited was established as a public limited company on 23r may 1975. Late Sri BH.Vijay Kumar Raju and Andhra Pradesh Industrial development corporation (APIDC) on 18th September 1975 promoted the Delta Paper Mills Limited; the company started its commercial production on 7th April 1977. The plant is located at Vendra, a village of Palakoderu mandal, in Andhra Pradesh. The following reasons will explain for selecting the location. •
For bringing reputation to the native place of the founder.
•
For creating employment to the rural youth.
•
The availability of raw material is surrounding areas, water facilities, drainage for disposal of effluents and its proximity to the broad gage railway line connecting Chennai and Kolkata.
•
The companies' main activity is to produce all varieties writing and printing paper. It is mainly an agro-based industry. Its main raw material is paddy straw. In 1976 ICICI along with IDBI, IFCI, LIC and UTI assisted the company for selling up
the product DELTA PAPER MILLS LIMITED commissioned the paper machine for commercial production from July 1978 and pulp mill by November 1973. It earned its profits in the second and third year of operations. Around 2000 families are getting their lively hood from this industry besides; ill farmers in and around the Vendra village are benefited from selling their paddy raw to the company.
Objectives of the Company: •
To carry on the business of manufacturing and dealing in all kinds and classes of paper.
•
To manufacturing and deal in all material and substances used in the manufacturing production of treatment of all kinds and classes of paper. 24
•
To buy, sell, import, process chemically or otherwise treat and to workout for special purpose of all kinds and classes of paper.
•
To plant, cultivate, produce, raise, manufacture, purchase, sell, export or otherwise handle or deal in grass timbered, bamboo, straw to other forest products.
Types of the products of the company: 1. Cream wove: This type of paper is used for typing notebooks and for government etc; 2. Azur laid: This type of paper is used for making charts, cards etc. 3. Azur wove: This type of paper is used for making office work, used usually for rough
work. 4. Duplicating paper: This type of paper is used for stencil work cyclostyling etc., it is used very much for rough works, color paper, vouchers etc., 5. Colour wove: This type of is used for packing bundles, packing and covers manufacturing. 6. Sack Kraft: This type of paper is used for packing bundles, packing and covers manufacturing. 7. Delta Hasthi: Brand name of the books this type of paper is used for note books.
Analysis and location of the company:
The company is situated at Vendra, 8km from Bhimavaram, West Godavari that some under the well-known Krishna Godavari Delta known as rice bowl of India. The company's main raw materials are paddy straw, which is available in huge quantities in this area. The other raw materials such as gunny waste, cotton linters and waste paper are procured easily from Rajahmundry, Visakhapatnam, Eluru, Vijayawada and Hyderabad in Andhra Pradesh.
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Capacity: In 1978 the initial production capacity was 30 tones per day. In 1986, Delta paper mills Limited under took an expansion project to double its capacity to 60 tones per day. Now the capacity of the plant is 115 tones per day.
Nature of Activity: Delta paper Mills Limited specialties in making paper alone, and produce primarily only three types of paper. 1. Printing 2. Writing 3. Craft paper.
Raw Materials: The following type of raw materials is used in manufacturing the paper in this company are: 1. Paddy straw. 2. Waste paper. 3. Cotton linters. 4. Reg pulp. 5. Wood pulp. 6. Bagasse & Chikusa. 7. Gunny & Jute waste. 8. Bleaching pulp. 9. Hosiery cutting pulp and others.
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Coal: Coal, which is essential to boil pulp solution, is obtained from sniggering calmness, which is in AP tiles.
Water facility: The Delta paper Mills plant requires 30 million gallons of water per day, and that up to 60 million after expansion of the plant. The water supply for the plant is obtained form Godavari canal system. The company was permitted to dispose of its effluents into Godavari river drains, which flows, by the plant.
Electricity Facility: The Andhra Pradesh state Electricity Board (APSEB) agrees to supply, required power to the plant and 2500KW, line was laid down from Nidadavole electric substation.
Gas and fuel: Delta paper Mills Limited is the first paper mill in South India to utilize the natural gasses as fuel, which is supplied by ONGC.
Transportation: The factory has both rail and road transportation facility. Apart form these navigable canal system aids economical transport of paddy straw and other raw materials form all sides. So it is better place to install the paper mill which is mainly based on agricultural raw material.
27
The Delta Paper Mills limited enterprise is broadly divided into two parts: 1. Mills. 2. Administration. Mills part divided into 10 parts: 1. Production. 2. Electrical. 3. Mechanical. 4. Paper machine. 5. Utilities. 6. Stores. 7. Quantity. 8. Personnel. 9. Co-ordinate. 10. Finishing house and paper go down.
The administration part is divided into 4 divisions: 1. Administration. 2. Accounts. 3. Marketing. 4. Purchasing. The factory part is kept under the control of a DEPUTY MANAGER for works, to his absence it is under the control of the in charge President of the factory (or) the factory Chief Executive. The administration part is kept under control of the Executive (Administration), in case of this absence it is under the control of Managing Director. 28
Employment: (AS ON 1 JANUARY 2006) Dedicated and committed team of about 2376 employees mans the company. Officers
------
38
Staff
------
156
Workers
------
571
Workers 5 grades: E, F, G, H, I, J Un Semi Skilled
(E)
------
253
Semi Skilled
(F)
------
2
Semi Skilled
(G)
------
4
Skilled
(H)
------
1
Skilled
(I)
------
60
Semi Skilled
(E)
------
253
Total
571
Personnel Philosophy of Management: Delta Paper Mill is professionally managed result oriented company. The personal or with outstanding experience in paper manufacturing and other major industries with proven track record in their respective professions with outmost dedication to achieve the company’s objective. The company adopted modern management philosophy and believes in human resources development as a pre-requisite for optional growth of the organization. 29
To the growth and development of the employees opportunities are provided to improve their performance and professional competence by appropriate exposure to nee based training and development programs. Welfare, sports and recreation facilities are provided to the employees in best traditions of the organization. The plant provides direct employment to around 3000 persons. The trust of the policies of directed towards the adoption of appropriate systems of management for providing security to share holders, speed in decision making, service to the customer and success of the employees exposes in the achievement of companies objectives.
Environment Policy: Delta paper Mills shall continue to pursue the policy of modifying and upgrading the existing technologies and processes. Implementing eco-friendly measures for minimizing waste generation, resource conservation and prevention of pollution of contribute to wars environmental improvement.
Reduction in Water Consumption: With the commitment of the employees and the support of the management towards energy conservation, continuous In-house R&D and energy conservation cell studies, the company is able to substantially reduce the water consumption.
Paper Making Process: The manufacture different type of writing printing, packaging papers and Boards using Sulphate process. The principal raw materials are Bamboo and wood. The Bamboo and wood are chipped in chippers and coved to chip silos. From the chip silos, the chip are fed to batch digesters with cooking, the pulp that comes out of the diggers is unbleached pulp and 30
then passed through pulp Knitters to remove Knots and then passed through four stage counter current washer for screening the foreign matters and separating the spend liquor is collected in big storage tanks from where it goes to soda recovery for converting into white liquor for use cooking chemical in diggers. The unbleached pulp fitter through screening to separate out the foreign materials is processed in bleaching plant to make it white for manufacturer of white/color paper. The pulps bleached in three stages consisting of chlorination. Cause extraction and hypochlorite in Bleach Plant No.2 and in addition chlorine Dioxide Bleaching is taking place in Bleach plant no.03 as per requirement. The bleached and unbleached pulp are send to stock preparation section, where the same is suitably refined to impart strength to the paper to be produced and suitable chemicals/dyes are added to give desirable chemicals generally used are Talcum, Alum, Rosin clay, Whitening agent.Various dyes for tinting & colorings. The wet web of paper is taken passed through roller presses with Woolen/Synthetic felts acting as cushion between the set paper and rolls. The function of the press is to extract future water as far as possible from the wed paper sheet and impart the required texture and when the paper comes out of the press it contains around in series to give dry paper. The sheet is then passed through highly polished rolls stacked one over the other. This process of calendaring imparts smooth finish to the paper. Then the paper sheet is wound around rotating shaft and rolls of paper are built up. These rolls converted into sheets on sheet cutters to meet the sheet orders. The rewound small reels and bundles of reams are packed with Hessian/HDPE cloth and transferred to go down for dispatch to customers.
At corporate level, the Vice President (Finance) executes the overall responsibility for finance activities Viz., Management of Budgetary Activities, Electronic Media Data Control and through the respective Managers.
31
At corporate level, the Vice President (Commercial) executes the overall responsibility for Marketing activities and contract reviews, Marketing Co-ordination, Conversion activities put side the works. At Factory level, the Vice President (Personnel &Administration) executes maintenance, plant accounting, material management and technical service though the General Manager (works) and other respective Managers for implementation of Corporate Production plans and Plant Management. At Factory level, the General Manager (works), execute the overall responsibility for Planning of Production and Maintenance though the Deputy General Manager (production), Deputy General Manager (PD&CS). At factory level, the Deputy General Manager (Tech.), executes the overall responsibility for quality and formulates Norms for quality.
32
ORGNIZATIONAL CHART IN DELTA PAPER MILLS BORD OF DIRECTOR
MANAGING DIRECTOR
CHIEF EXICUTIVE GENARAL MANAGER WORKS MANAGER
(Finance and Administration)
(Engineering) SUPDT SUPDT
SUPDT
Paper
Paper
Proces s
M/c
Mills
Quality
SUPDT
EXICUTIVE
EXICUTIVE
Electrica l
Engineer
Engineer
Mechanical
Mechanical
Civil Manager
Finance
Manager
Stores
Manager
Personal
2 Clerks 2 Typists
Sr. Manager (Marketing & Purchase) Marketing & Purchase Deputy Manager Asst. Manager
Sales Officer
Staff 33
ORGNIZATIOLNAL CHART OF THE PERSONAL DEPARTMENT GENARAL MANAGER
ASSISTANT MANAGER PERSONAL
MANAGER PERSONAL OFFICER
WELFARE OFFICER
SECURITY OFFICER
MEDICAL OFFICER
ASST.PER .OFFICER
CANTEEN S SUPERVISOR
SECURITY SUPERVISOR
DOCTER
LABOUR ASSISTENTS
GARDINER
SECURITY GUARDS
ASSISTENTS
MAJDUR SWEEPERS
TIMEKEEPERS TYPIST ATENDER
34
COMPOUNDER
CONCEPT OF PERFORMANCE APPRAISAL SYSTEM Introduction: Appraising the performance of individuals, groups and organizations is a common practice of all societies. While in some instances these appraisal processes are structured and formally sanctioned, in other instances they are an informal and integral part of daily activities. Thus, teachers evaluate the performance of students, bankers evaluate the performance of creditors, parents evaluate the behaviour of their children, and all of us, consciously or unconsciously evaluate our "own actions from time to time. In social interactions, performance is conducted in a systematic and planned manner to achieve widespread popularity in recent years.
Meaning: Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the quantitative and qualitative aspects of hob performance. Performance here refers to the degree of accomplishment of the tasks that make up an individual's job. It indicates how well an individual is fulfilling the job demands. Often the term is confused with effort, but performance is always measured in terms of results and not efforts. Some of the important features of performance appraisal given, they are: 1. Performance appraisal is the systematic description of an employee's job- relevant strengths and
weaknesses. 2. The basic purpose is to find out how well the employee is performing the job and establish a plan of
improvement. 3. Appraisals are arranged periodically according to a definite plan. 4.
Performance appraisal is not job evaluation. Performance appraisal refers to how well someone is
doing the assigned job. Job evaluation determines how much a job is worth to the organization and, therefore, what range of pay should be assigned to the job.
Use of Performance Appraisal: 35
•
Performance appraisal is helpful in assessing a firms human resources data must be available that describe the promobility and potential of all employees.
• A well designed appraisal system provides a profile of the organization's human resource strengths and weaknesses to support this effort. • Performance evaluation ratings may be helpful in predicting the performance of job applicants. • Performance appraisal will point out employee specific needs for training and development. • Performance appraisal is useful in career planning and development. • Performance appraisal results provide a basis for rational decisions regarding compensation programmes. • Performance appraisal data are also frequently used for decisions in several areas of internal employee relations, including promotion, demotion, termination, lay-off. and transfer. • Performance appraisal is useful in assessment of employee potential. • Performance appraisal can be used to determine whether HR programmes such as selection, training, and transfers have been effective or not.
Objectives of Performance Appraisal: Performance appraisal aims at attaining the different objectives, they are 1. To create and maintain a satisfactory level of performance. 2. To contribute to the employee growth and development through training, self and management development programmes. 3. To help the superiors to have a proper understanding about their subordinates 4. To facilitate fair and equitable compensation based on performance. 5. To facilitate for testing and validating selection tests, interview techniques through comparing their scores with performance appraisal ranks. 6. To provide information for making decisions regarding lay off, retrenchment etc. 36
7. To ensure organizational effectiveness through correcting employee for standard and improved performance, and suggesting the change in employee behavior.
Appraisal Process: Each step in the process is crucial and is arranged logically. Many organizations make every effort to approximate the ideal process, resulting in first-rate appraisal systems. Unfortunately, many others fail to consider one or more of the steps and, therefore have lesseffective appraisal system.
Objectives of Performance appraisal Establish job Expectations
Design an appraisal Programme
Appraise performance
Performance Interview
Use appraisal data for appropriate Purpose
37
1. Objectives of Appraisal: Objectives of appraisal include effecting promotions and transfers, assessing training needs, awarding pay increases, and the like. The emphasis in all these is to correct the problems.
2.Establish job expectations: The
second step in the appraisal process is to establish job expectations. This includes
informing the employee what is expected of him or her on the job.
3.Design appraisal programme: Designing an appraisal programme posses several questions which need answers. They are (i) Formal versus informal appraisal; (ii) Whose performance is to be assessed? (iii) Who are the raters? (iv)What problems are encountered? (v) How to solve the problems? (vi) What should be evaluated? (vii) When to evaluate? (viii) What methods of appraisal are to be used?
4.Performance Interview: Performance interview is another step in the appraisal process. Once appraisal has been made of employees, the raters should discuss and review the performance with the rates, so that they will receive feedback about where they stand in the eyes of superiors.
5.Use of Appraisal data: The final step in the evaluation process is the use of evaluation data. The data and information generated through performance evaluation must be used by the HR department.
38
Methods of Performance Appraisal: With the evaluation and development of appraisal system, a number of methods or techniques of performance appraisal have been developed.The important among them.
Traditional Methods 1) Graphic Rating Scales: Graphic rating scales compare individual performance to an absolute standard. In this method, judgments about performance are recorded on a scale. This is the oldest and widely used technique. This method is also known as linear rating scale or simple rating scale. The appraisers are supplied with printed forms, one for each employee. These forms contain a number of objectives, behavior and trait - based Qualities and characters to be rated like quality and volume of work, job knowledge, dependability, initiative, attitude etc., in the case of workers and analytical ability, creative ability, initiative, leadership qualities, emotional stability in the case of managerial personnel. These forms contain rating of scales. Rating scales are of two types, viz., continuous rating scale and discontinuous rating scales. In continuous order like o, 1, 2, 3, 4 and 5 and in discontinuous scale the appraiser assigns the point to each degree. The points given by the rater know performance regarding each character. The points given by the rater to each character are added up to find out the overall performance. Employees are ranked on the basis of total points assigned to each one of them. One reason for the popularity of the rating scales is its simplicity, which permits many employees to be quickly evaluated. Such scales have relatively low Design cost and high in case of administration. They can easily pinpoint significant dimensions of the job. The major draw back to these scales is their subjectivity and low reliability. Another limitation is that the descriptive words often used in such lies may have different meanings to different raters.
39
2) Ranking Method: Under this method the employees are ranked from best to worst on some characteristics. The rater first finds the employee with the highest performance and the employees with the lowest performance in that particular job category and rates the former as the best and the later as the poorest. Then the rater selects the next highest and next lowest and so on until he rates all the employees in that group. Ranking can be relatively easy and inexpensive, but its reliability and validity may be open to doubt. It may be affected by rater bias or varying performance standards. Ranking also means that somebody would always be in the backbench. It is possible that the low ranked individual in one group may turnout to be superstar in another group. One important limitation of the ranking method is that size of the different between individuals is not well defined. For instance, there may be little difference between those ranks third and fourth.
3) Paired Comparison Method: This method is relatively simple. Under this method, the appraiser ranks the employees by comparing one employee with all other employees in the group, one at a time. As illustrated, this method results in each employee being given a positive comparison total and a certain %age total positive evaluation.
Example:
A
B
C
D
E
A
-
A
A
A
A
B
-
-
C
D
E
C
-
-
-
D
E
D
-
-
-
-
E
E
-
-
-
-
-
40
To compute Employee's positive evaluations: Number of positive evaluations
X 100 = Employee's % Superior evaluation Total
number of evaluations Employee A Employee B Employee C Employee D
(4/4)* 100=100%
(0/4)* 100=0%
Employee E
(2/4)* 100=50%
(1/4)* 100=25%
(3/4) * 100 = 75%
4) Forced Distribution Method: The rater may rate his employees at the higher or at the lower end of the scale under the earlier methods. Forced distribution method is developed to prevent the raters from rating too high or too low. Under this method, the rater after assigning the points to the performance of each employee has to distribute his ratings in a pattern to conform to normal frequency distribution. Thus, similar to the ranking technique, forced distribution requires the raters (supervisors) to spread their employee evaluation in a prescribed distribution. This method eliminates central tendency and leniency biases. However, in this method employees are placed in certain ranked categories but not ranked within the categories. Quite often work groups do not reflect a normal distribution or individual performance. This method is based on the questionable assumption, as group of employees will have the same distribution of excellent, average and poor performers. If one department has all outstanding employees, the supervisor would find it extremely difficult to decide who should be placed in the lower categories. Difficulties can also arise when the raters most explain to the employee why he was placed in one grouping and others were placed in higher groupings.
5) Checklist Methods: The Checklist is a simple rating technique in which the supervisor is given a list
of
statement or words and asked to check statements representing the characteristics and 41
performance of each employee. There are three types of checklist methods, viz, simple checklist, weighted checklist and forced choice method.
(a) Simple Checklist Method: The checklist consists of large number of statements concerning employee behavior. Example:
Simple
Wadia
Checklist
Method,
Industries
Performance
Ltd.,
Appraisal
Form
Name of Employee:
Number: Designation: Department:
Checklist of Qualities: 1. Behavior is the employee punctual in attending the office? A) Yes
B)No
2. Does the employee behave courteously with his superiors? A) Yes
B) No
3. Does the employee maintain sound customer relations'? A) Yes
B) No
4. Is the employee sincere in doing his job? A) Yes
B) No
The rater checks to include if the behavior of an employee is positive or negative to each statement. Employee performance is rated on the basis of number of positive checks. The 42
negative checks are not considered in this method. A difficulty often arises because the statements may appear to be virtually identical in describing the employee. The words or statements may have different meanings to different raters.
(b)Weighted Checklist: The weighted checklist method involves weighting different items in the checklist having a series of statements about an individual, to indicate that some are more important than others. The rater is expected to look into the questions relating to the employee's behavior, the attached rating scale (or simply positive /negative statements where such a scale is not provided) and tick those traits that closely describe the employee behavior. Often the weights are not given to the supervisors who complete the appraisal process, but are computed and tabulated by someone else, such as a member of the personnel unit. In this method the performance ratings of the employee are multiplied by the weights of the statements and coefficients are added up. The cumulative coefficient is the weighted performance score of the employee. Weighted performance score is compared with the overall assessment standards in order to find out the overall performance of the employee. The weighted checklist, however, is expensive to design to design, since checklist for each different job in the organization must be produced. This may prove time consuming also in the end. Though the weighted checklist method is evaluative as well as development, it has the basic problem of the evaluator not knowing the items, which contribute mostly of successful performance.
(C) Forced Choice Method: This method was developed at the close of World War II. Under this method, a large number of statements in groups are prepared. Each group consists of four descriptive statements (treated) concerning employee behavior. Two statements are most descriptive (favorable) and two are least descriptive (unfavorable) of each m tetrad. Sometimes there may be five statements
43
in each group out of which one would be neutral. The actual weightings of the statements are kept secret.
The appraiser is asked to select one statement that that mostly describes employee's behavior out of the two favorable statements are kept secret. The appraiser is asked to select one statement that that mostly describes employee's behavior out of the two unfavorable statements. The items are usually a mixture of positive and negative statements. The intent is to eliminate or greatly reduce the rater's personal bias, specially the tendency to assign all high or low ratings. The items are designed to discriminate effective from ineffective workers as well as reflect valuable personal qualities.
6) Critical Incident Method: Employees are rated discontinuously, i.e., once in a year or six months under the earlier methods. The performance rated may not reflect real and overall performance, as the rater would be serious about appraisal method, i.e., critical incident method has been developed. Under this method, the supervisor continuously records the critical incidents of the employee performance or behavior relating to all characteristics (both positive and negative) in a specially designed notebook. The supervisor rates the performance of his subordinates on the basis of notes taken by him. Since the critical incident method does not necessarily have to be a separate rating system, it can be fruitfully employed as documentation of the reasons why an employee was rated in a certain way. The critical incident method has the advantage of being objective because the rater considers the records of performance rather than the subjective points of opinion.
7) Essay or Free From Appraisal: This method requires the manager to write a short essay describing each employee's performance during the rating period. This format emphasizes evaluation of overall performance, based on strengths weakness of employee performance, rather than specific job dimensions. By 44
asking supervisors to enumerate specific examples of employee behavior, the essay technique minimizes supervisory bias and halo effect.
8) Group Appraisal: Under this method, an employee is appraised by a group of appraisers. This group consists of the immediate supervisor of the employee, to other supervisors who have close contact with employee's work, manager or head of the department and consultants. The head of the department or manager may be the chairman of the group and the immediate supervisor may act as the coordinator for the group activities. This group uses any one or multiple techniques discussed earlier. The immediate supervisor enlightens others members about the job characters, demands, standards of performance etc. Then the group appraises the performance of the employee, compares the actual performance with standards, find out the deviations, discusses the reasons therefore, suggests ways for improvement of performance, prepares action plans, studies the need for change in job analysis and standards and recommends change, it necessary. This method is widely used for purpose of promotion, demotion and retrenchment appraisal.
9) Confidential Report: Assessing the employee's performance confidentially is a traditional method of performance appraisal. Under this method, superior appraises the performance of his subordinates based on his observations, judgments and institutions. The superior keeps his judgment and report confidentially. In other words the superior does not allowed the employee to know the report and his performance. Superior writes the report about his subordinates, strengths. Weakness, intelligence, attitude to work, sincerity, commitment, punctuality, attendance, conduct, character, friendliness, etc, Though confidential report is a traditional method, most of the public sector organizations still follow this method in appraising the employee's performance. This method suffers from a number of limitations.
45
Modern Methods 1) Behaviorally Anchored Rating Scales (BARS): The Behaviorally Anchored Rating Scales (BARS) method combines elements of the traditional rating scales and critical incidents methods. Using BARS, job behaviors from critical incidents effective and ineffective behaviors are described more objectively. The method employs individuals who are familiar with a particular job to identify its major components. They then rank and validate specific behaviors for each of the components. BARS require considerable employee participation; its acceptance by both supervisors and their subordinates may be greater. Proponents of BARS also claim that such a system differentiates among behavior, performance and results, and consequently is able to provide a basis for setting developmental goals for the employee. Because it is job - specific and identities observable and measurable behavior, it is more reliable and valid method for performance appraisal.
2) Assessment Centre: This method of appraising was first applied in German Army in 1930. Later business and industrial houses started using this method. This is not a technique of performance appraisal by itself. In fact it is a system or organization, where assessment is done by several individuals and also by various experts by using various techniques. In this approach individual from various departments are brought together to spend two or three days working on an individual or a group assignment similar too the ones they'd be handling when promoted. All assess get an equal opportunity to show their talents and capabilities and secure promotion based on merit. An assessment model is shown below. Human Resource Accounting deals with cost of and contribution of human resource to the organization. Cost of the employee includes cost of manpower planning, recruitment, selection, induction, placement, training, development, wages and benefits etc. employee contribution is the money value of employee service which can be measured by labour productivity or value added by human resources.
46
3) Management by objectives: Although the concept or management by objectives was advanced by Peter F.Duckers way back in 1954, it was described only recently as 'large range' in performance appraisal. Refinements brought out by George Odione, Valentines, Humble and others have enriched the concept and made it more acceptable all over the globe as an MBO in their work settings. Some of the companies which implemented MBO reported excellent results, others disappointments, and many in decisions. Started briefly, MBO is a process whereby the superiors and subordinate managers of an organization jointly identify its common goals, define each individual's major areas of responsibility in terms of results excepted of him, and use these measures of guides for operating the unit and assessing the contribution of its members. Generally, the unit and assessing the contribution of its members. Generally the 1VIBO is undertaken along the following lines. ■ The subordinate and superior jointly determine goals to be accomplished during the appraisal period and what level of performance is necessary for the subordinate to satisfactory achieve specific goals. ■ During the appraisal period the superior and subordinate update and later goals as necessary due to changes in the business environment.
4) Psychological Appraisal: Psychological appraisal are conducted to asses the employee potential, Psychological appraisal consist of (a) In - depth interviews (b) Psychological tests (c) Consultations and discussions with the employee (d) Discussions with the superior's sub-ordinates and peers (e) Reviews of others evaluations.
47
Evaluation is conducted in the areas of (a) employee's intellectual abilities, (b)Emotional stability, (c) motivational responses, (d) sociability, (e) employees ability to comprehend the vents, and (f) ability to foresee the future.
5) Counseling: After the performance of the employee is appraised, the superior should inform the employee about the level of his performance, the reason for the same, need for and the methods of improving the performance. The superior should counsel the employee about his performance and the methods of improving it. Counseling is a planned, systematic intervention in the life of an individual who is capable of choosing the goal and the direction of his development. Thus, the purpose of counseling is to help the employee aware of his own performance, his strengths and weakness, opportunities availabilities available for performance counseling can be done in the form of performance interview by the superior.
The Post Appraisal Interview: The post appraisal interview has been considered by most of the organizations, as well as employees, as the most essential part of appraisal system. This interview provides the employee the feedback information, and an opportunity to appraiser to explain the employee his rating, the traits and behavior he has taken into consideration for appraisal etc. It also gives the opportunity to employee to explain his views about the rates, standards or goals, rating scale, internal and external environment causes for low level of performance, his resources responsible for performance etc. further it helps both the parties to review standards, set new standards based on the reality factors, and helps the appraiser to offer his suggestions, help, guide and coach the employee for his advancement. Thus, the post appraisal interview is designed to achieve the following objectives.
48
1. To let employees know where they stand. 2. To help employees do a better job by clarifying what is expected of them; 3. To plan opportunities for development and growth; 4. To strengthen the superior -subordinate working relationship by developing a mutual agreement of goals; 5. To
provide
an
opportunity
for
employees
to
experience
themselves
on
performance related issues.
Relating Performance Appraisal to Rewarding: Management should recognize and performance. The forms of recognizing and rewarding performance
include: (a) Private and public praise, (b) Written commendation, (c) published
commendation, (d) increased autonomy, (e) change in job title, (f) Status symbols like office space, furnishings, (g) performance bonuses, (h) salary increases, (i) promotion in grade, or increase in responsibilities and (j) various forms of supplementary compensation. Managers should match the rewards both with performance and with the perception and needs of the employee.
6) Managerial Appraisal: It is relatively easy to appraise the performance of technical or operative employees compared to managerial personnel. This is because; the performance of operative employees can be measured quantitatively, whereas the performance of managers cannot be determined quantitative terms. Harold Koontz has developed a concept of managerial functions, viz., planning, organizing, leading motivating, staffing and controlling. Performing a number of or series of activities can perform each of these functions. For example, performing staffing functions requires performing a series of activities like analyzing jobs of his department, planning for human resources, deciding upon internal and external recruitment. Thus each function and sub functions of manager are elaborated into a series of activities. The checklist contain the questions in these areas is prepared with a five degree rating scale, i.e., externally 49
poor performance, neither poor nor fair performance and externally fair performance. Thus this technique measures the performance of managers in managing organizational environment. Importance of performance appraisal: For many organizations the primary goal of an appraisal system is to improve individual and organizational performance. There may be other goals, however. In fact, performance appraisal data are potentially valuable for virtually every human resource functional area.
System Of Performance Appraisal: Performance appraisal is a nine-step process: 1. Establish performance standards. 2. Communicate standards/expectations to employee. 3. Measure actual performance due to the environment influences. 4. Adjust the actual performance due to the environmental influences. 5. Compare the adjusted performance what that of others and previous. 6. Compare the actual performance with standards and find out deviations, if any. 7. Communicate the actual performance to the employee concerned. 8. Suggest changes in job analysis and standard, if necessary. 9. Follow-up performance appraisal report.
At the first stage, performance standards are established based on the job description and job specification. The standard should be clear, objective and incorporate all the factors. The second stage is to inform these standards to all the employees including appraisers. The third stage is following the instructions given for appraisal, measurement of employee performance by the appraisers through observations, interviews, records and reports. 50
Fourth stage is finding out the influence of various internal and external factors on actual performance. The influence of these factors may be either inducing or hindering the employee performance. The measured performance may be adjusted according to the influence of external and internal factors. The performance derived at this stage may be taken actual performance. Fifth stage is comparing the actual performance with that of other employees and pervious performance of the employee and others. This given an idea where the employee to the influence of external and internal factors. The performance derived at this stage may be taken actual performance. Sixth stage is comparing the actual performance with the standards and finding out deviations. Deviations may be positive or negative. If employee's performance is more than standards, it is positive deviation and vice-versa is negative deviation. Seventh stage is communicating, the actual performance of the employee and other employees doing the same job and discuss with him about the reasons for the positive or negative deviations from the pre-set standards as the case may be. Eighth stage is suggestions necessary changes in standards in standards, job analysis, and internal and external environment. Ninth stage is follow-up of performance appraisal report. This stage includes guiding, counseling, coaching and directing the employee or making arrangements for training and development of the employee in order to ensure improved performance. If actual performance is
very
poor
and
beyond
the
scope
of improvement it is necessary to take steps for
demotion or retrenchment or any other suitable measure.
51
Key elements of performance appraisal system are presented in figure below. Human Performance
Performance Appraisal
Employee Feedback
Performance Measures Performance – Related Standards
Human Resources
Employee
Decisions
Records
52
The usual steps are as follows Plan the performance
Determine responsibility for appraisal Appraisal period
Examine work performed
Appraisal the results
Conduct appraised interview Discuss goals for next period Problems in performance appraisal: Performance appraisal has come under a heavy barrage of criticism. The list of the problems that have been associated with performance appraisal are as follows: •
A potential weakness of traditional appraisal methods is that they lack objectivity.
•
A huge challenge that impedes an effective performance evaluation is the bias, which can be either positive or negative.
•
Some times halo error occurs when a manager generalizes one positive performance feature or incident to all aspect of employee performance.
•
Leniency: - Giving an undeserved high performance appraisal rating to an employee. 53
• Strictness: - Being unduly critical of an employee's work performance.
Establishment of performance appraisal criteria: The most common appraisal criteria are traits, behaviors, competencies, goal achievement, and improvement potential. The main objective of establishment of performance criteria is to identify the aspects of a person's performance that an organization should evaluate.
• Traits: Certain employee traits such as attitude, appearance, and initiative are the basis for some evaluations.
• Behaviors: When an individual's task outcome is difficult to determine, organizations may evaluate the person's task related behavior or competencies. If certain behaviors result in desired outcomes, there is merit in using them in the evaluation process.
• Competencies: This includes a broad range of knowledge, skills, traits, and behaviors that may be technical in nature, relate to interpersonal skills or be business oriented.
• Goal achievement: If organizations consider ends more important than means, goal
achievement
outcomes become an appropriate factor to evaluate.
• Improvement potential: When organizations evaluate their employees* performance, many of the criteria used focus on the past. From a performance management view point the problem is that you cannot change the past. Unless a firm takes further steps, the evaluation data become merely historical documents. Therefore firms should emphasize the future, including the behaviors and outcomes needed to develop the 54
employee, and in the process achieve the firm's goals. This involves an assessment of the employee's potential.
Characteristics of an effective appraisal system: The basic purpose of a performance appraisal system is to improve performance of individuals, teams, and the entire organization. The system may also serve to assist in the making of administrative decisions concerning pay increases, transfers, or terminations. In addition, the appraisal system must be legally defensible. Organizations should seek an accurate assessment of performance that permits the development of a plan to improve individual and group performance. The following factors assist in accomplishing these purposes;
• Job related criteria: Job relatedness is perhaps the most basic criteria in employee performance appraisal. More specifically, evaluation criteria should be determined through job analysis.
• Performance expectations: Managers and sub-ordinates must agree on performance expectations in advance of the appraisal period. On the other hand, if employees clearly understand the expectations, they can evaluate their own performance and may timely adjustments as they perform their jobs without having to wait for the formal evaluation review.
• Standardization: Firm should use the same evaluation instrument for all employees in the same job categorywho work for the same supervisor. Supervisors should also conduct appraisals covering similar periods for these employees. Regularly scheduled feedback sessions and appraisal interviews for all employees are essential. •
Trained appraisers: 55
The individual or individuals who observe at least a representative sample of job performance normally have the responsibility for evaluating employee performance. This person is often the employee's immediate supervisor. Training should be given to these appraisers to ensure accuracy and consistency. A training module posted on the internet or company intranet may serve to provide information for managers as needed.
• Continuous open communication: Most employees have a strong need to know how well they are performing. A good appraisal system provides highly desired feedback on a continuing basis. There should be few surprises in the performance review.
• Performance reviews: A performance review allows them to detect any errors or omissions in the appraisal, or an employee may simply disagree with the evaluation and want to challenge it. Constant employee performance documentation is vitally important for accurate performance appraisal.
•
Due process: Ensuring due process is vital. If the company does not have a formal grievance procedure, it should
develop one to provide a employees an opportunity to appeal appraisal results that they consider inaccurate or unfair. They must have a procedure for pursuing their grievances and having them addressed objectively.
56
Appraisal Process Followed In Delta Paper Mills: In delta paper mills they are following one of treditional method of performance appraisal, that is critical incident method. But it is not helpful for the employees, because it is older method.
Critical Incident Technique: This, too, is a type of appraisal for the employee alone. Here, the employee's best and worst incidents of behavior are analyzed annually. These events are the ones that are the most critical in appraising the employee.
57
DATA ANALYSIS AND INTERPRETATION Human Resources are the greatest assets for any organization. These recourses should be developed to their fullest extent for the efficient functioning of an organization and their performance needs to appraise continuously. The present study is aimed at analyzing the “Performance Appraisal system” at DELTA PAPER MILLS at VENDRA. There is a felt, need and justification to conduct surveys and to know the perceptions of employees regarding existing practices. A structured questionnaire has been surveyed among 40 respondents by adopting strata technique. And their perceptions are analyzed and interpreted in this chapter. For the purpose of survey, a sample of 40 employees has been taken into consideration with a view to assess the "Performance Appraisal System" in DELTA PAPER MILLS LIMITED Performance appraisal helps in the assessment of individual potential.
58
Table-4.1 Performance Appraisal is the assessment of individual potential. S.No. 1 2 3 4 5
Rating Scale
No.
of
Respondents 7 4 0 29 0 40
Strongly Agree Neutral Strongly Disagree Agree Disagree Total
In% 17.5 10 0 72.5 0 100
Graph-4.1
Analysis: From the above table-4.1 it can be known that 72 % of respondents have agreed about the assessment of individual potential and 17.5 % of them have strongly agreed of the above statement and 10 % of the employees are in a neutral stage and where none of them have disagreed for the above statement. So majority of the respondents i.e. 72.5 % of the respondents have agreed about the assessment of individual potential.
59
Interpretation: From the above analysis we can interpret that, some of the employees were in neutral position, because the appraisal system in the organization was not in a full fledge way.
Table-4.2 Performance Appraisal system followed in the organization is rational and fair. S.No.
Rating Scale
No.
of
ln%
respondents 1. 2. 3. 4. 5.
Strongly Agree Neutral Strongly Disagree Agree Disagree Total
1 12 1 22 4 40
2.5 30 2.5 55 10 100
Graph-4.2 25 20 15 10
Series1
5 0 Strongly Agree
Neutral
Srtongly Disagree
Agree
Disagree
Analysis: From the above table-4.2 it can be known that, 55% of respondents have agreed that die performance appraisal system followed in the organization rational and fair and 30 of the respondents are in neutral stage. Where as 2.5pciceiU of the respondents have agreed for the 60
above statement and 2.5petce&t of the respondents have strongly disagreed, where 10 % of the respondents have disagreed for the above statement.
Interpretation: From the above analysis we can interpret that, some of the employees were in neutral position. Because the organization doesn’t following the company’s policies fairly.
Table-4.3 Job expectations are informed and the superiors set the tasks. S, No. 1.
Rating Scale Strongly Agree
2. 3.
Neutral
No. of respondents In% 3
7.5
10
25
Strongly Disagree 0
0
4.
Agree
24
60
5.
Disagree
3
7.5
Total
40
100
Graph-4.3
25 20 15 10
Series1
5 0 Strongly Agree
Neutral
Strongly Disagree
Agree
61
Disagree
Analysis:
From the above table-4.3 it can be known that, 60% of respondents have agreed
that the job expectations are informed and the superiors set die tasks. And 25% of die respondents are in neutral stage and 7,5% strongly agree for above statement and where as 7.5% of the respondents disagree for die above statement, none of them are in a stage of strongly disagree opinion.
Interpretation: The above analysis shows that, some of employees were in neutral position. Because the job expectations were not informed, and the tasks were not assigned by superiors properly.
Table-4.4 Performance Appraisal followed in the Organization helps to the Training and development needs of employee. zS.No.
RatingScale
No.
of
In%
respondents 1. 2. 3. 4. 5.
Strongly Agree Neutral Strongly Disagree Agree Disagree Total
6 4 0 27 3 40
15 10 0 67.5 7.5 100
Graph4.4 30 25 20 15 Series1
10 5 0 Strongly Neutral Strongly Agree Disagree Agree Disagree 62
Analysis: From the above table-4.4 it is found that, 67.5% of respondents have agreed for the performance appraisal followed in the organization helps to assess the training and development needs of employee and I5 % of them have strongly agreed in ID-% of the respondents are in neutral stage and the remaining 7.5% of the respondents are in disagreed opinion. Where none of them are is strongly disagreed opinion.
Interpretation: The above analysis states that, majority of the employees opined that a good performance appraisal system in the organization, helps to train and develop an employee in all aspects.
Table-4.5 The Performance appraisal in the organization helps to recognize the competence and potential of an individual. S.No.
Rating Scale
No.
of ln%
respondents 1.
Strongly Agree
4
10
2. 3. 4. 5.
Neutral Strongly Disagree Agree Disagree Total
3 1 30 2 40
7.5 2.5 75 5 100
63
Graph-4.5
Analysis: From the above table-4.5 it is found that, 75% of respondents have agreed for the performance appraisal in the organization helps to recognize the competence and potential of individual and 10 % of the respondents have strongly agreed, and 7.5% of the respondents are in neutral stage and 5% are in disagreed opinion where as 2.5% of the respondents strongly disagree for the above statement
Interpretation: The above analysis elicits that, some of the employees were in neutral and disagree position. Because the appraisal process in the organization is not that much effective.
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Table-4.6 Employees are happy with the assessment of performance followed in the organization. S.No.
Rating Scale
of
ln%
respondents
Graph-4.6
Analysis:
No.
1.
Strongly Agree
3
7.5
2. 3. 4. 5.
Neutral Strongly Disagree Agree Disagree Total
14 0 18 5 40
35 0 45 12.5 100
From the above table-4.6 it is found that, 45% of respondents have agreed that
they are happy with the assessment of performance appraisal followed in the organization. And 35 % of the respondents are in neutral stage and 12.5% of the respondents are in a disagreed stage where 7.5% have strongly agreed for the above statement but none of them have strongly disagreed for this statement. 65
Interpretation:We can interpret that, most of the employees were in disagree and neutral position. Because the assessment system in the organization was not up to the mark.
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Table-4.7 Employees have been appraised fairly according to the company's policies. S. No.
Rating Scale
1. 2. 3. 4. 5.
Strongly Agree Neutral Strongly Disagree Agree Disagree Total
No.
of In %
respondents 2 13 0 23 2 40
5 32.5 0 57.5 5 100
Graph-4.7
Analysis:
From the above table-4.7 it is found that, 57.5% of respondents have agreed that
the employees have been appraised fairly according to the company policies and 32.5% of the respondents are neutral stage and 5% of them are strongly agree and where as 5% of the respondents disagree for the above opinions and none of them have disagree for the above opinion.
Interpretation: Here we can state that, most of the employees were in disagree and neutral position. Because performance appraisal was not done fairly according to the companies policies.
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Table-4.8 Advises and suggestions are given to the employees during the appraisal process. S. No.
Rating Scale
No.
of
In%
respondents 1. 2 3. 4. 5.
Strongly Agree Neutral Strongly Disagree Agree Disagree Total
3 15 0 10 12 40
7.5 37.5 0 25 30 100
Graph-4.8
Analysis:
From the above table4.8 it is found that, 30 % of respondents have disagreed that
advises and suggestions are given to the employees during the appraisal process and 25% of them have agreed and 7.5% of the respondents strongly agree and majority of the respondents i.e. 37.5% are in a neutral stage and none of them have disagreed for the above statement.
Interpretation:
The above analysis exhibits that, employees are expecting many more
suggestions and advises, during the appraisal process that would be helpful for their career.
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Table-4.9 The employees accept the appraisal feed back as. S. No.
Rating Scale No.
Of %
respondents 1. 2. 3. 4.
Positive way Uninteresting Negative way Neutral Total
3 15 0 10 40
7.5 37.5 0 25 100
Graph-4.9:
Analysis:
From the above table-4.9 it is found that, 50% of respondents have a
positive way regarding acceptance of the appraisal feed back. And 47.55 of them are in a neutral opinion and 2.5% of the respondents feel it uninteresting on the above statement. And none of them have a negative acceptance of this statement
Interpretation: This analysis shows that, employees are not much interested in taking the appraisal feedback.
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Table-4.10 The appraiser of the company should be. S.No.
Rating Scale
No.
of
1. 2. 3. 4.
Superior HOD Subordinate Peer groups Total
respondents 13 25 1 1 40
In% 32.5 62.5 2.5 2.5 100
Graph-4.10
Analysis:
From the above table-4.10 it is found mat, 62.5perecent of respondents feel
that their HOD should be their appraiser and 32.5% of them feel that their superior should be the appraisal and 2.5% of the respondents feel that their subordinates and peer groups should be the appraiser.
Interpretation: This states that, the appraiser should be the head of the department, the employee feel that he is the right person to evaluate their performance.
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Table-4.11 Employee need to be assessed as. S.No.
No.
Rating Scale
1. 2. 3.
of
respond eents 8 11 21 40
Once in 3 months Once in 6 months Once in a year Total
In% 20 27.5 52.5 100
Graph-4.11
25 20 15 10
Series1
5 0 Once in 3 Once in 6 Once in a months months year
Analysis:
From the above table-4.11 it is found that, 52.5% of respondents feel that their
appraisal system should be once in a year and 27.5% of the respondents feel that it should be twice in a year (6 months) and where as 20% of the respondents feel that it should be for every 3 months.
Interpretation:
Here, the employees felt that, they need to be assessed once in a year, as
they felt it is a right period of time to assess the performance.
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Table-4.12 The performance appraisal followed in the organization makes the employees. S.No Rating Scale 1 2
No.
of In%
Respondents Motivating 38 95 De motivating 2 5
Graph-4.12
Analysis:
From the above table-4.12 it is found that, 95% of respondents are motivated
towards performance appraisal followed in the organization and 5 % of the respondents demotivates for the above statement. So majority of the respondents i.e.. 95 % of the respondents have motivated towards the appraisal system followed in the organization.
Interpretation:
From the above study, employees felt performance appraisal system as a
motivating factor.
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Table-4.13 Types of errors / problems have impact on performance rating in the Organization. S. No 1 2 3 4 5 6
Rating Scale
No
of In%
Respondents Influence 9 Attitude 16 Biased 8 Personal Grudge 1 Subjectivity 5 Status Effect 1
22.5 40 20 2.5 12.5 2.5
Graph-4.13
Analysis:
From the above table-4.13 it is observed that, appraisal system is rated by attitude
that is 40% and 22.5% of the respondents by influence and 20% by biased, 12.5% by subjectivity and 2.5% by personal grudge and remaining 2.5% by status effect.
Interpretation:
The employees opined that, attitude factor have a greater impact on the
performance appraisal system.
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Table -4.14 Feedback on Performance is communicated after assessment of the Performance. S.No Rating Scale No 1 2
Yes No
of In%
Respondents 19 47.5 21 52.5
Graph-4.14
Analysis:
From the above table-4.14 it is found that, 52.5% of respondents disagree that feed
back on performance is communicated after assessment of the performance appraisal. And 47.5% of the respondents agree for the above statement. So majority of the respondents i.e. 52.5 % of the respondents have disagreed that the feedback on performance is communicated after assessment of the performance appraisals.
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Interpretation:
Here, the some of the employees express their view that, the
performance feedback need not be communicated after the assessment, while some of them felt that it is essential.
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Table-4.15 Employees are aware of 360-degree appraisal. S.No Rating Scale No of Respondents 1 Yes 11 2 No 29
In% 27.5 72.5
Graph-4.15
Analysis: From the above table-4.15 it is found that, 72.5% of respondents are aware of 360degree appraisal and 27.5% of die respondents are not known of 360-degree appraisal. So majority of the respondents i.e.. 72.5 % of the respondents have agreed that they were aware of 360 degree appraisal
Interpretation: Here from the above study it is known that, the employees are not completely aware of 360degrees appraisal system. 76
SUMMARY Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. Performance appraisal refers to all the formal procedures used to evaluate an individual, his contributions and potential. In other words, it is to plan and measure the performance of an individual in terms of the requirement of the job or it is a process of finding out how effective the organization has been at hiring and placing an employee. Performance appraisal is a formal system of review and evaluation of individual or team task performance. While evaluation of team performance is critical when teams exist in an organization, the focus of performance appraisal in most firms remains on the individual employees. Regardless of the emphasis, an effective appraisal evaluates accomplishments and initiates plans for development, goals and objectives. The mill initially started 1975 by SRI B.H VIJAYA KUMAR RAJU garu and had tone into commercial production in 1978 The Krishna, Godavari delta known as the rice- bowl of Indian and more particularly W.G.Dist comes under the well known networks of canal from the Godavari Anacut. Almost all parts of the district have wet land. Cultivation with to paddy, crops per year since paddy straw can be used to the 60% of the total raw material of delta paper mills and as it also is the most economical of all the available inputs, one could not have asked suitable location.
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Other raw materials such as gunny waste , cotton lintels and waste paper are produced easily from Rajahmundry, Vizag, Eluru, Vijayawada and Hyderabad in A.P. Since the company as well connected by broad gauge railway lines, the factory as not in the past experienced any problem in producing these raw material. The Delta Paper Mills Limited was established as a public limited company on 23r may 1975. Late Sri BH.Vijay Kumar Raju and Andhra Pradesh Industrial development corporation (APIDC) on 18th September 1975 promoted the Delta Paper Mills Limited; the company started its commercial production on 7th April 1977. The plant is located at Vendra, a village of Palakoderu mandal, in Andhra Pradesh. The following reasons will explain for selecting the location. •
For bringing reputation to the native place of the founder.
•
For creating employment to the rural youth.
•
The availability of raw material is surrounding areas, water facilities, drainage for disposal of effluents and its proximity to the broad gage railway line connecting Chennai and Kolkata.
•
The companies' main activity is to produce all varieties writing and printing paper. It is mainly an agro-based industry. Its main raw material is paddy straw. In 1976 ICICI along with IDBI, IFCI, LIC and UTI assisted the company for selling up
the product DELTA PAPER MILLS LIMITED commissioned the paper machine for commercial production from July 1978 and pulp mill by November 1973. It earned its profits in the second and third year of operations. Hence by the above analysis, we can conclude that employees responded according to their own perception and were expecting additional benefits which management has to concentrate and take into consideration such that employees can be retained and can excel in their profile.
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FINDINGS More than half of the employees (72.5%) agree that Performance Appraisal is the
assessment of individual potential. Some of the employees (30%) neutral that Performance Appraisal system followed in
the organization is rational and fair. Some of the employees (25%) neutral that Job expectations are informed and the
superiors set the tasks. Most of the employees (67.5%) agree that Performance Appraisal followed in the
Organization helps to the Training and development needs of employee. Some
of the employees (5%) disagrees that The Performance appraisal in the
organization helps to recognize the competence and potential of an individual Less than half of the employees (35%) disagrees that they are happy with the
assessment of performance followed in the organization. most of the employees (32.5%) neutral that they have been appraised fairly according
to the company's policies. Most of the employees (30%) disagrees that Advises and suggestions are given to the
employees during the appraisal process.
Most of the employees (37.5%) uninterestingly accept the appraisal
feedback. Most of the employees (62.7%) feel that appraisal should be given by HOD. Most of the employees (52.5%) that they need to be assessed as once in a year. All most of the employees (95%) feels that the performance appraisal followed in the
organization makes the employees Motivated. Most of the employees (40%) think that attitude have impact on performance rating in
the Organization. Most of the employees (52.5%) do not agree that Performance is communicated after
assessment of the Performance.
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SUGGESTIONS As per the study the following are the suggestions: The Performance Appraisal in the organization should be in a full fledge way so that
the others will be accepting this. As the Performance Appraisal is helpful to the employees by the assignment of
superiors task by training & development which should be more effective so that the other employees will also be attracted. The Performance Appraisal should be assist effectively to the employees as it
recognizes the competence and potential of an individual. Employee’s appraisal should be fairly done according to the companies policies so
that it will assist the performance of the employees. The company should give some advises and suggestions to the employees during the
process and should get there feedbacks about the process. The employees should assess and appraised by their HOD once in a year. The employees should be aware of 360 degrees appraisal and the organization should
follow this to motivate the employees.
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CONCLUSION ■ The options required strong motivation to face the challenges.
■ Proper training and satisfaction at all levels will be the strongest foundation to launch an assault on the challenges and convert the challenges to opportunities through effective performance appraisal measures in the organization.
Industry most response like wise
In future performance appraisal measures will have to be planned in relation to the changes taking place.
The performance measures leads exist both at fresh entry level as well as to continuing education level for working personnel.
An effective safety measures based on emerging trends suggests model for achieving the targets which will make paper industry in India truly competitive.
81
82
BIBLIOGRAPHY Books: • Donald L. Kirkpatrick, 2006, Improving Employee Performance through Appraisal and Coaching. • Richard Rudman, 2003, Performance Planning and Review. • Roger E. Herman, 1997, The Process of excelling, oak Hill press. • P. Subba Rao, 2006, Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing House.
Journals: • Gitam Journal of Management. • Journal of Occupational and Environmental medicine. • Indian Journal of Social Work. • Indian Journal of Human Resource.
•
www.deltapapermills.com
•
www.google.com
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ANNEXURE
1. Is Performance Appraisal helps in the assessment of individual potential?
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
2. Does the Performance Appraisal system followed in the organization is rational and fair?
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
3. Whether the Job expectations are informed and the superiors set the tasks?
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
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4.
Does the performance Appraisal followed in the organization helps to assess
the training and development needs of employee?
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
5. Does the Performance appraisal in the organization helps to recognize the competence and potential of an individual?
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree 6. Whether the employees happy with the assessment of Performance followed in the organization?
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
7. Does the Employees appraised fairly according to the company’s policies?
Strongly Agree
Agree 85
Neutral
Disagree
Strongly Disagree
8. Does the Advises and suggestions are given to the employees during the appraisal process?
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
9. How do the employees accept the appraisal feedback?
Positive way
Negative way
Uninteresting
Neutral
10.Who should be the appraiser?
Superior
Subordinate
HOD
Peer group
86
11.How often should an employee be assessed?
Once in 3months Once in 6months Once in a year 12. How the performance appraisal followed in the organization? Motivate Denominative 13.What types of errors / problems have impact on performance rating in the organization? Influence
Biased
Attitude
Personal Grudge
Subjectivity
Status Effect
14. Whether the Feedback on performance communicated after assessment of the Performance? Y es
No
15. Are you aware of 360-degree appraisal? Y es
No
87
