DECLARATION
I here by declare that the project report entitled “PERFORMANCE APPRAISAL” is submitted by me.it has not been submitted earlier to this or any other university for the award the any degree or diploma or prize
PROJECT ASSOCIATE: SABREEN SULTANA (Reg: 0929159) Signature:
CERTIFICATE
This is to certify that the following student with the name Miss Md Sabreen Sultana bearing the H.T.NO:0929159 from CRESCENT SCHOOL OF BUSINESS,CHENNAI has successfully completed the project title PERFORMANCE APPRAISAL as part of the course curriculum in our organization.
She has done the project during the period JUN -2010 to JULY-2010, under guidance and supervision of Mr.L.O.PRASAD, HR, JOCIL PVT LTD.
She has completed the assigned project well with in the time frame. She is sincere, hardworking and her conduct, during period is commendable. We wish her all the best in her endeavor
CERTIFICATE
This is to certify that the following student with the name Miss Md Sabreen Sultana bearing the H.T.NO:0929159 from CRESCENT SCHOOL OF BUSINESS,CHENNAI has successfully completed the project title PERFORMANCE APPRAISAL as part of the course curriculum in our organization.
She has done the project during the period JUN -2010 to JULY-2010, under guidance and supervision of Mr.L.O.PRASAD, HR, JOCIL PVT LTD.
She has completed the assigned project well with in the time frame. She is sincere, hardworking and her conduct, during period is commendable. We wish her all the best in her endeavor
ACKNOWLEDGEMENT
Firstly, I wish to express my gratitude and thanks to all the people who helped me in making this endeavor a reality. I am grateful to Mr.GANESH. Head of the department of M.B.A for encouraging us t o keep up this project and for giving timely suggestions and his valuable guidance, to make this project a success. My sincere thanks to Dr.perriswamy registrar of B.S.ABDUR RAHMAN UNIVERSITY For giving me opportunity to under go the project work. I sincerely thank to all of my friends whose coop eration and suggestions have helped me in successful completion of this project
CONTENTS: (1) INTRODUCTION
1.1 FUNCTIONS OF HRM (2) PERFORMANCE APPRAISAL
2.1 Need for the study 2.2Objectives of the study 2.3 Limitations of study 2.4 Objectives of performance appraisal 2.5 Importance of Performance appraisal 2.6 Process of performance appraisal 2.7 Methods of performance appraisal 2.8 Advantages of performance appraisal 2.9 Disadvantages of performance appraisal (3)Industry profile (4) Company profile (5) Data analysis Interpretations (6) Findings and suggestions (7) Bibliography
HUMAN RESOURCE MANAGEMENT
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 contributes to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations In simple words, HRM means employing people, developing their capacities, utilizing, maintaining and compensating their services in tune with the job and organizational requirement Human resource is a term used to describe the individuals who comprise the workforce
of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations. Human resources is also the name of the function within an organization charged with the overall responsibility for implementing strategies and policies relating to the management of individuals (i.e. the human resources). This function title is often abbreviated to the initials Human resources are a relatively modern management term, coined in the 1960s The origins of the function arose in organizations that introduced 'welfare management' practices and also in those that adopted the principles of 'scientific management'. From these terms emerged a largely administrative management activity, co-coordinating a range of worker related processes and becoming known, in time as the 'personnel function'. Human resources progressively became the more usual name for this function, in the first instance in the United States as we ll as multinational corporations, reflecting the adoption of a more quantitative as well as strategic approach to workforce management, demanded by corporate management and the greater competitiveness for limited and highly skilled workers.
History The early development of the function can be traced back to at least two distinct movements. One element has its origins in the late 19th century, where organizations such as Cadburys at its Bourneville factory recognized the importance of looking after the welfare of the workforce, and their families. The employment of women in factories in the United Kingdom led to the introduction of "Welfare Officers". Meanwhile, in the United States the concept of human resources developed as a reaction to the efficiency focus of Taylorism or "scientific management" in the early 190 0s, which developed in response to the demand for ever more efficient working practices within highly mechanized factories, such as in the Ford Motor Company. By 1920, psychologists and employment experts in the United States started the human relations movement, which viewed workers in terms of their psychology and fit with companies, rather than as interchangeable parts. During the middle of the last century, larger corporations, typically those in the United States that emerged after the Second World War, recruited personnel from the US Military and were able to apply new selection, training, leadership, and management development techniques, originally developed by the Armed Services, working with, for example, university-based occupational psychologists. Similarly, some leading European multinationals, such as Shell and Phillips developed new approaches to personnel development and drew on similar approaches already used in Civil Service training. Gradually, this spread more sophisticated policies and processes that required more central management via a personnel department composed of specialists and generalist teams. The role of what became known as Human Resources grew throughout the middle of the 20th century. Tensions remained between academics who emphasized either 'soft' or 'hard' HR. Those professing so-called 'soft HR' stressed areas like leadership, cohesion, and loyalty that play important roles in organizational success. Those promoting 'hard HR' championed more quantitatively rigorous management techniques in the 1960s.
In the later part of the last century, both the title and traditional role of the personnel function was progressively superseded by the emergence, at least in larger organizations, of strategic human resources management and sophisticated human resources departments. Initially, this may have involved little more than renaming the function, but where transformation occurred, it became distinguished by the human resources having a more significant influence on the organizations strategic direction and gaining boardlevel representation. FUNCTIONS OF HRM
There are seven main functions of HR . Function 1: Manpower planning The penalties for not being correctly staffed are costly. •
•
Understaffing loses the business economies of scale and specialization, orders, customers and profits. Overstaffing is wasteful and expensive, if sustained, and it is costly to eliminate because of modern legislation in respect of redun dancy payments, consultation, minimum periods of notice, etc. Very importantly, overstaffing reduces the competitive efficiency of the business.
Future staffing needs will derive from: • • •
•
•
•
Sales and production forecasts The effects of technological change on task needs Variations in the efficiency, productivity, flexibility of labor as a result of training, work study, organizational change, new motivations, etc. Changes in employment practices (e.g. use o f subcontractors or agency staffs, hiving-off tasks, buying in, substitution, etc.) Variations, which respond to new legislation, e.g. payroll taxes or their abolition, new health and safety requirements Changes in Government policies (investment incentives, regional or trade grants, etc
Function 2: Recruitment and selection of employees Recruitment of staff should be preceded by: An analysis of the job to be done (i.e. an analytical study of the tasks to be performed to determine their essential factors) written into a job description so that the selectors know what physical and mental characteristics applicants must possess, what qualities and attitudes are desirable and what characteristics are a decided disadvantage; •
In the case of replacement staff a critical questioning of the need to recruit at all (replacement should rarely be an automatic process).
•
Effectively, selection is 'buying' an employee (the price being the wage or salary multiplied by probable years of service) hence bad buys can be very expensive. For that reason some firms (and some firms for particular jobs) use external expert consultants for recruitment and selection.
•
Equally some small organizations exist to 'head hunt', i.e. to attract staff with high reputations from existing employers to the recruiting employer. However, the 'cost' of poor selection is such that, even for the mundane day-to-day jobs, those who recruit and select should be well trained to judge the suitability of applicants.
Function 3: Employee motivation To retain good staff and to encourage them to give of their best while at work requires attention to the financial and psychological and even physiological rewards offered by the organization as a continuous exercise. Basic financial rewards and conditions of service (e.g. working hours per week) are determined externally (by national bargaining or government minimum wage legislation) in many occupations but as much as 50 per cent of the gross pay of manual workers is often the result of local negotiations and details (e.g. which particular hours shall be worked) of conditions of service are often more important than the basics. Hence there is scope for financial and other motivations to be used at local levels.
As staffing needs will vary with the productivity of the workforce (and the industrial peace achieved) so good personnel policies are desirable. The latter can depend upon other factors (like environment, welfare, employee benefits, etc.) but unless the wage packet is accepted as 'fair and just' there will be no motivation.
Function 4: Employee evaluation: An organization needs constantly to take stock of its workforce and to assess its performance in existing jobs for three reasons: •
To improve organizational performance via improving the performance of individual contributors (should be an automatic process in the case of good managers, but (about annually) two key questions should be posed:
•
what has been done to improve the performance of a person last year? o
And what can be done to improve his or her performance in the year to come?).
•
To identify potential, i.e. to recognize existing talent an d to use that to fill vacancies higher in the organization or to transfer individuals into jobs where better use can be made of their abilities or developing skills.
•
To provide an equitable method of linking payment to performance where there are no numerical criteria (often this salary performance review takes place about three months later and is kept quite separate from 1. and 2. but bu t is based on the same assessment).
Function 5: Industrial relations Good industrial relations, while a recognizable and legitimate objective for an organization, are difficult to define since a good system of industrial relations involves complex relationships between: (a) Workers (and their informal and formal groups, i. e. trade union, organizations and their representatives);
(b) Employers (and their managers and formal organizations like trade and professional associations); (c) The government and legislation and government agencies l and 'independent' agencies like the Advisory Conciliation and Arbitration Service.
Function 6: Provision of employee services Attention to the mental and physical p hysical well-being of employees is normal in many organizations as a means of keeping keep ing good staff and attracting others. The forms this welfare can take are many and varied, from loans to the needy to counseling in respect of personal problems. Among the activities regarded as normal are: •
Schemes for occupational sick pay, extended sick leave and access to the firm's medical adviser;
•
Schemes for bereavement or other special leave;
•
The rehabilitation of injured/unfit/ disabled employees and temporary or permanent move to lighter work;
•
The maintenance of disablement statistics and registers (there are complicated legal requirements in respect of quotas of disabled w orkers and a need for 'certificates' where quota are not fulfilled and recruitment must take p lace);
•
Provision of financial and other support for sports, social, hobbies, activities of many kinds which are work related;
•
Provision of canteens and other catering facilities;
•
Possibly assistance with financial and other aid to employees in difficulty (supervision, maybe, of an employee managed benevolent fund or scheme);
•
Provision of information handbooks,
•
Running of pre-retirement courses and similar fringe activities;
•
Care for the welfare aspects of health and an d safety legislation and provision of firstaid training.
The location of the health and safety function within the organization varies. Commonly a split of responsibilities exists under which 'production' or 'engineering' managemen t cares for the provision of safe systems of work and safe places and machines etc., but HRM is responsible for administration, training and education in awareness and understanding of the law, and for the alerting of all levels to new requirements.
Function 7: Employee education, training and development In general, education is 'mind preparation' and is carried out remote from the actual work area, training is the systematic development of the attitude, knowledge, skill pattern required by a person to perform a given task or job adequately and development is 'the growth of the individual in terms of ability, understanding and awareness'. Within an organization all three are necessary in order to: •
Develop workers to undertake higher-grade tasks;
•
Provide the conventional training of new and young workers (e.g. as apprentices, clerks, etc.);
•
Raise efficiency and standards of performance;
•
Meet legislative requirements (e.g. health and safety);
•
Inform people (induction training, pre-retirement courses, etc.);
Performance Appraisal
A performance appraisal , employee appraisal , performance review , or (career) development discussion is a method by which the job performance of an
employee is evaluated (generally in terms of quality, quantity, cost, and time) typically by the corresponding manager or supervisor performance appraisal is a part of guiding and managing career development. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization. Performance appraisal is an analysis of an employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgment of an employee's performance in a job based on considerations other than productivity alone.
Objectives of a performance appraisal •
Give employees feedback on performance
•
Identify employee training needs
•
Document criteria used to allocate organizational rewards
•
Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, bonuses, etc.
•
Provide the opportunity for organizational diagnosis and development
•
Facilitate communication between employee and administration
•
Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements.
•
To improve performance through counseling, coaching and development.
Importance of Performance Appraisal Performance appraisals provide employees and managers with oppo rtunities 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 an d the ways in which employees can participate in the achievement of those goals.
Process of Performance Appraisal ESTABLISHING PERFORMANCE STANDARDS
The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the p erformance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards.
COMMUNICATING THE STANDARDS
Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization. The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.
MEASURING THE ACTUAL PERFORMANCE
The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work. COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE
The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance o f the employees from the standards
set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees’ performance.
DISCUSSING RESULTS
The result of the appraisal is communicated and discussed with the employees on oneto-one basis. The focus of this discussion is on c ommunication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees’ future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better.
DECISION MAKING
The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions Traditional Methods of Performance Appraisal ESSAY APPRAISAL METHOD
This traditional form of appraisal, also known as "Free Form method" involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. A major drawback of the method is the inseparability of the bias of the evaluator.
2. STRAIGHT RANKING METHOD
This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation
3. PAIRED COMPARISON
A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings.
4. CRITICAL INCIDENTS METHODS
In this method of Performance appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behaviour as and when they occur.
5. FIELD REVIEW
In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors’ personal bias.
6. CHECKLIST METHOD
The rater is given a checklist of the descriptions of the behaviour of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.
7. GRAPHIC RATING SCALE
In this method, an employee’s quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on the job performance of the employees. For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory FORCED DISTRIBUTION
To eliminate the element of bias from the rater’s ratings, the evaluator is asked to
distribute the employees in some fixed categories of ratings like o n a normal distribution curve . The rater chooses the appropriate fit for the categories on his own
discretion. Modern Methods of Performance Appraisal ASSESSMENT CENTRES -
An assessment centre typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would b e expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics.
The major competencies that are judged in assessment centers are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment centres are also an effective way to determine the training and development needs of the targeted employees.
BEHAVIORALLY ANCHORED RATING SCALES
Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad (for eg. the qualities like inter personal relationships, adaptability and reliability, job knowledge etc). These statements are developed from critical incidents.
In this method, an employee’s actual job behavior is judged against the desired behavior by recording and comparing the behavior with BARS. Developing and practicing BARS requires expert knowledge.
HUMAN RESOURCE ACCOUNTING METHOD
Human resources are valuable assets for every organization. Human resource accounting method tries to find the relative worth of these assets in the terms of money. In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees. The cost of employees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the total v alue added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them.
MANAGEMENT BY OBJECTIVES
The concept of ‘Management by Objectives’ (MBO) was first given by Peter
Drucker
in 1954. It can be defined as a process whereby the employees and the superiors come together to identify common goals, the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed.
The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employee’s actual performance with the concept of ‘Management by Objectives’ (MBO) was first given by Peter
Drucker in
1954. It can be defined as a process whereby
the employees and the superiors come together to identify common goals, the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed. The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employee’s actual performance with the standards set. Ideally, when employees
themselves have been involved with the goal setting and the choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities. THE MBO PROCESS
UNIQUE FEATURES AND ADVANTAGES OF MBO
The principle behind Management by Objectives (MBO) is to create empowered employees who have clarity of the roles and responsibilities expected from them, understand their objectives to be achieved and thus help in the achievement of organizational as
well
as
personal
goals.
360 Degree Performance Appraisals 360 degree feedback , also known as 'multi-rater feedback' , is the most comprehensive
appraisal where the feedback about the employees’ performance comes from all the sources
that
come
in
contact
with
the
employee
on
his
job.
360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the "on-the-job" performance of the employee. 360 degree appraisal has four integral
components:
1.Self
appraisal
2Superior’s
appraisal
3Subordinate’s
appraisal
4.Peer
appraisal.
Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superior’s appraisal forms the traditional part of the 360 degree performance appraisal where the employees’ responsibilities
and
actual
performance
is
rated
by
the
superior.
Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superior’s ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees’ abilities to work n a team, co-operation and sensitivity towards
others.
Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behavior and performance. It provides a "360-degree review" of the employees’ performance and is considered to be one of the most credible performance appraisal methods.
360 degree performance appraisal is also a powerful developmental tool because when
conducted at regular intervals (say yearly) it helps to keep a track of the changes others’ perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc.
Benefits of Performance Appraisal
If appraisal is to be effective, staff must see the process attempting to meet their needs, otherwise the system will not work. This means Heads of Department do need to form an overview of the issues raised by their staff and if ap propriate feed these into the planning process. Appraisal should result in: Benefits for the individual: • Gaining a better understanding of their role • Understanding more clearly how and where they fit in within the wider picture • A better understanding of how performance is assessed and monitored • Getting an insight into how their performance is perceived • Improving understanding of their strengths and weaknesses and developmental needs • Identifying ways in which they can improve performance • Providing an opportunity to discuss and clarify developmental and training needs • Understanding and agreeing their objectives for the next year. • An opportunity to discuss career direction and prospects.
Benefits to the line manager/supervisor/team leader: • Opportunities to hear and exchange views and opinions away from the normal pressure of work • An opportunity to identify any potential difficulties or weaknesses • An improved understanding of the resources available • An opportunity to plan for and set objectives for the next period • An opportunity to think about and clarify their own role • An opportunity to plan for achieving improved performance • An opportunity to plan for further delegation and coaching • An opportunity to motivate members of the team.
Benefits to the organisation: • A structured means of identifying and assessing potential • Up-to-date information regarding the expectations and aspirations of employees • Information on which to base decisions about promotions and motivation • An opportunity to review succession planning • Information about training needs which can act as a basis for developing training plans
• Updating of employee records (achievements, new competencies etc) • Career counselling • Communication of information
Disadvantages of performance appraisal
Performance appraisals are usually part of a yearly review process in which a supervisor reviews the job performance, goal completion and projects accomplished by an employee. While the structure of performance appraisals offers a way for giving constructive feedback to employees, which in turn can be used as a reward or a motivational tool, there are downsides to traditional performance app raisals. One Sided Input
Traditional performance appraisals involve a supervisor and supervisee, both of which have limited perspectives. As with any situation, limited perspectives lead to a limited amount of information by which to judge performance.
If a manager is busy supervising several people, as well as tasks and other projects, then there will be limited time to take in the full scope and practice of the performance of the supervisee. As an alternative, many industries today are utilizing 360-degree feedback, which takes into account the relationships that an employee has with peers, customers, clients, supervisors and those whom the supervisee is responsible for ove rseeing.
Forms Only Give Quantitative or Qualitative Data
Many times, feedback forms that are utilized in performance appraisals only use quantitative or qualitative measures, but not both. Quantitative appraisals mainly measure numbers, such as how many projects, how many were on time. While this is important, there are other things to take into consideration.
Qualitative benchmarks involve the completion of personal or professional goals and the stories of how the supervisee utilized opportunities to lead by example and proactively implement the values and mission of the organization. Listening to the stories of what has happened over the past year and looking at numbers and outcomes will result in a clearer picture of what the value of the employee is to the organization. Once-a-Year Raises
Performance appraisals are usually done once a year and are connected to an increase in salary. This is a disadvantage in that supervisees generally live in fear and experience anxiety when their review time comes up. Having more consistent interaction when it comes to feedback between management and supervisees can help reduce the fear, anxiety and wondering about a raise. Furthermore, the employee naturally will want to bargain for more money focusing on their strengths and the management will want to emphasize the constructive areas of performance evaluation in order to keep from giving raises, since money is a limited resource in any organization. This adds to the stress of the review
COMPANY PROFILE The JOCIL Limited was incorporated by JayaLakshmi group of industries, Tanuku, west Godavari dist on 20-02-78.The Andhra Pradesh oil and chemical industries LIMITED as a joint venture. In 1982 40% of shares were held by Jaya Lakshmi factories and the name was changed as JayaLakshmi oil and chemical industries limited. Further in july 1992 its logo has been changed as JOCIL limited after organizing the whole shares were hold by the company. Main products of the company are fatty acids, Glycerin, Toilet soaps, etc., Fatty acids and soaps projects were set up on turnkey basis through M/s.Ballastra (INDIA) Limited, Bombay with technology and equipment of CMD, Italy.
INITIAL INVESTMENT: The company has set up Es.33crores Fatty acids and soap project on turn they basis through M/s. Ballestra(INDIA) Limited , Bombay with technology and equipment of CMB., Italy.
LOCATION OF THE COMPANY: The company is located at Dokiparru in Medikonduru Mandal of Guntur District in the state of Andhra Pradesh. The area was declared as backward one by the Government of Andhra Pradesh. It is only 15 KM from Guntur and it on Guntur - Narasaraopet highway. It is well connected by both rail and road transportation. It is only 45 km., from Vijayawada, which is industrially located.
HISTORY OF JOCIL LIMITED JOCIL LIMITED is situated at Dokiparru, which is in Medikonduru Mandal of Guntur District of Andhra Pradesh. Main products of the company are fatty acids and toilet soaps. The equipment was supplied by Messrs. Ballastra (INDIA) Limited , Bombay with the technologies of Italy.The Government has given permission for the manufacture of processed fatty acids and individual fatty acids with actual licensed capacity of 9000 metric tons and glycerin with the licensed capacity of 9000 metric tons and toilets soaps with a licensed capacity of 5000 metric From time to time the company received letters from the Department
of industrial Development, Ministry of industry, Governments of India, New Delhi. The present licensed capacity of fatty acid is 37500 metric tons, Glycerin is 1800 metric tons, and toilet soaps 15000 metric tons In JOCIL the number of workers employed were 451. The some of the main competitors of JOCIL are Godrej, Vegetable Vitamin and fats limited, Siris Agro limited. JOCIL Limited was incorporated in 20th February , 1978 with the name of Andhra Pradesh oil and chemical industries limited. This was a joint venture with Andhra Pradesh Industrial
development
corporation (APIDC) and was Andhra Pradesh Oil and chemical industries Limited was changed into JayaLakshmi Oil and chemical Industries Limited. The company’s name has been
subsequently changed
from JayaLakshmi Oil
and chemical industries Limited to JOCIL Limited with effect from 17th September, 1992. JOCIL Limited is a subsidiary of the Andhra Sugars Limited, Tanuku.
POLICIES AND PHILOSOPHY OF JOCIL LIMITED: The company has well defined policies for 1. Quality 2 . Consumer Safety 3. Safety, Health and Environment (SHE)
Company’s Philosophy: 1. To be a Successful Profit Making Organization. 2. To Conduct its Operations with Honesty, Integrity and Transparency. 3. To be the Market Leader in its Field of Operations through Continual Improvement in Efficiency and Quality of Products & Services. 4. To have Concern for Employees, Shareholders, Customers and Business Associates. 5 To Serve Society through Industry. 6. To care for the Environment and the World in which we live.
OBJECTIVE OF JOCIL LIMITED: The main objective of the company is to manufacture fatty acids and toilet soaps. The company received letter of intent from department of industrial development, ministry of industries, Government of India, New Delhi, Enhancing the annual licensed capacity of fatty acids, Glycerin and toilet soap. The company has implemented this letter by increasing installation capacity of Fatty acids paint from 6,205 M.T per annum to15,510 MT with effect from February, 1991. This enhanced capacity came into operation.
Industrial licensing & shareholders pattern As the value of fixed assets envisaged in the project is less than Rs.3.3 Crores the industrial license is not required for setting of this project. The company has been registered with directorate general of technical development (DGTD) Government of India, New Delhi Bering No.DGTD/HQ/D-S-/R-4733/C26 (N)/SE/79 with their letter dated 21-05-1979 and 31-03-1990 for the manufacture of
1
Processed fatty acids / Industry fatty
9000
2 3
acids Glycerin Toilet soaps
900 5000
Share holders pattern:
31-03-1997 Promoters (The Andhra sugars limited, holding company)
55.02%
Public Institutions: (ICICI & ISEC)
33.63%
Face value of share:
Rs 10/- each
Profile of the Jocil limited Nature of unit
-
Small scale unit
Manufacturing
ORGANIZATIONAL STRUCTURE OWNERSHIP AND MANAGEMENT:-
BOARD OF DIRECTORS:
Dr. Mullapudi Harischandra Prasad
- Chairman
Shri Jagarlamudi Murali Mohan
- Managing Director
Shri Pendyala Narendranath Chowdary
- Director
Shri Mullapudi Thimmaraja
- Director
Shri Yelamarti Narayanarao Chowdary
- Director
Shri Vuppalapati Seetharama Raju
- Director
Shri Kandimalla Srinivasa Rao
- Director
Shri M. Gopalakrishna, IAS (Retd.)
- Director
Shri Subbarao V. Tipirneni
- Director
SENIOR EXECUTIVES Sri P. Kesavulu Reddy
-
President & Secretary
BANKERS: Andhra Bank State Bank of India
-
Guntur -
Guntur
AUDITORS: Brahmaiah & Co.,
-
Guntur
-
Hyderabad
COST AUDITORS:
Narasimha Murthy & co.,
REGISTERED OFFICE & FACTORY: JOCIL LIMITED, Dokiparru, Guntur – 522019 Andhra Pradesh
FOREIGN EXCHANGE EARNINGS AND OUT GO: There were no foreign exchange earnings during the year. In previous year the company exported crude glycerin and earned foreign exchange equivalent to Rs.55,69,519/-. The company improved raw materials, spares during the year resulting in foreign exchange auto equipment to Rs.6,56,93,981/- (previous year Rs.67,940/-).
FINANCE: The company is regular in repaying the instalments of principal and interest on the loan of Rs.8.80 Crores obtained from Andhra Bank for power plant. The Company has not availed the term loan of Rs.3.20 crores sanctioned by State Bank of India for power plant as requirements were met with the internal reserves generated form the operations.
DIVIDEND: Considering the profitability of the company, the Board of Directors has been pleased to recommend for the approval of the Company, payment of dividend of 50% (taxable) on the equity share capital of Rs.4,44,05,750/amounting to Rs.222.03 lakhs. In the previous year the Company paid a total dividend of 50% on equity share capital.
FUTURE OUTLOOK : The competition in the Fatty Acid industry continues to be severe. The reduction in customs duty has promoted many users to import their requirements instead of depending on the indigenous supplies. During the year, a 100 tpd capacity fractional distillation plant was set up to improve the range and quality of fatty acids produced.
BIOMASS POWER :
The Company has been making third party sale of surplus power as per the benefits offered at the time of setting up of Biomass co-generation power plant. Subsequently, Andhra Pradesh Electricity Regulatory Commission, Hyderabad (APERC) has prohibited third party sales by its order dated 20 th June, 2001. The Company has in turn obtained stay order from the Honorable High Court to continue third party sales. Again, APERC by its order dated 24th March, 2002 has increased wheeling charges from 2% in kind to 28.4%in kind and 50 Ps. Per kWh in cash. AP TRANSCO is also offering discounts up to 25% of energy charges on the increased power consumption to attract the consumers away from private generators. This being so, the Company is restricted in choosing its customer as AP TRANSCO is not accepting charges in the schedule of customers to power purchase and wheeling agreement. In view of these problems, the Company is planning to sell the entire surplus power to AP TRANSCO in spite of obtaining stay on the order of APERC for third party sales and increase in wheeling charges.
RESEARCH AND DEVELOPMENT (R & D) 1.
Specific areas in which R & D carried out by the company quality
improvements of the products and efficient use of utilities. 2.
Benefits derived as a result of the above (R & D). improved products
quality, quantity and conservation of utilities. 3.
Future plan of actions Utilization of various field residues as fuel in power
plant. Enhancing capabilities through use of latest technology in fatty acids. 4.
Expenditure of R & D
Rs. In Lakhs 2006-2007 2005-2008 a) Capital 4.33 0.29 b) Recurring 11.00 10.66 Total 15.33 10.95 Total R & D expenditure as a percent of turnover 0.26 0.10
Marketing
The company mainly markets its products form its depots held at Bombay, Delhi, Kolkata, and bangalore, and directly from the factory. The prices are fixed basing on its competitors and the variations in the prices of ram materials. No of advertising is done by the fatty acids. As it is an industrial product, the company does not allocate any amount on advertisement and the consumers come to the depots of factory and place their orders in the case of soaps, as they are manufacturers on the contract basis of HLL no advertising is required. Jocil leads only with the soap products and the marketing & advertising is taken over by HLL.
Financial Jocil Ltd purchased equipment form IFCI on completions of leas period. Andhra Bank and state bank of India have sanctioned term loans of Rs 8.80 Crores and Rs.3.20 Crores respectively for setting up 6MR Biomass cogeneration power plant in the existing premises. during the year term loan from Andhra Bank was drawn and utilized, the company expects to drawn the amount of SBI in the current year.
PERFORMANCE AND ACHIEVEMENT OF JOCIL: 1. JOCIL is a leading manufacturer of all kinds of Fatty Acids. It also manufactures soaps. 2. JOCIL supplies different grades of stearic acid and other fatty acids to other manufacturing companies of pharmaceuticals, chemicals, plastics etc., 3. JOCIL supplies Fatty Acids to meet their specific requirements of Stearic Acid Oleic Acid etc. 4.JOCIL manufactures soaps on contract basis to HLL. 5. JOCIL supplies soap noodles of Margo brand to Calcutta Chemicals Company.
6. JOCIL’s production of quality goods is due to the following factors
(a) Usage of good quality raw materials like rice bran oil, coconut oils, cotton seed oils etc. (b) The processing and purification of Fatty Acids is done by using latest technology. (c) The technology and requirement of JOCIL has been imported from C.M.B., Italy. (d) Maintenance of quality control by experienced and committed operating personnel. (e) Toilet soaps and glycerin are manufactured as per BISC (formerly known as ISI) Standards. (f) It uses high quality chemicals for the purification and processing of the Fatty Acids. (g) It maintains international standards in manufacturing its products so as to suit different kinds of industrial
PRODUCTS OF JOCIL: Jocil has set up a modern plant for the manufacturing of fatty acids, toilet soap and refined Glycerin. The products manufactured are of international standards to suit different industrial users. Jocil is manufacturing two types of products. 1. Industrial Goods (chemical) 2. Consumers Goods (soaps) Fatty acids, refined glycerin and other fatty acid pitches fall under the category of industrial goods where as soaps come under the category of consumer goods. Fatty acids are manufactured from vegetable oils and fats. There are different types of fatty acids for different industrial applications. The following are the different kinds of fatty acids, which can be manufactured in Jocil. 1. Crude fatty acids of vegetable acids & fats. 2. Distilled fatty acids of vegetable acids & fats. 3. Hydrogenated fatty acids of vegetable acids & fats
Out of the above type of fatty acids, Jocil is manufacturing the following the fatty acids which are a major portion of their sales.
1. Stearic acid 2 .Oleic acid.
3. Distilled & Hydrogenated fatty acids.
STEARIC ACID: In stearic acid, different grades are produced with standard specifications for different industrial consumers. The following are the different grades of Stearic acids consumed by different industries in manufactured their own industrial products.
REFINED GLYCERINE: Two varieties of refined glycerin are produced namely. 1. Chemically pure grade (C.P) 2. Industrial white (I.W) Glycerine is used in pharmaceuticals, cosmetics, explosives, paints, store ink, chemicals, tooth paste etc.
OLEIC ACID: Only one variety of oleic acid namely “commercial grade” is manufactured by Jocil. It is used in fertilizers, cutting oils, liquid soaps and other chemical manufactures.
DISTILLED FATTY ACID: The fatty acids of different oils are tailor made products to suit different industrial user’s specifications. At present Jocil is manufacturing distilled hydrogenated rice bran fatty acids, distilled cottonseed oil fatty acids, distilled coconut acids. They have plans to manufacture some more variables in future. Distilled hydrogenated rice bran fatty acids and distilled palm fatty acids are also being manufactured for consumption in soap plant for the manufacture of toilet soaps.
FATTY ACID PITCHES: Fatty acid pitches are obtained during distillation of crude fatty acids. These products are supplied to laundry soaps, grease, foundry chemicals uses.
SOAP MANUFACTURING: Different types of distilled fatty acids and hydrogenated fatty acids are mixed to obtain a desired quality of toilet soaps. Different types of soaps are manufactured to satisfy different types of users. Generally features of toilet soaps should be good lather, good perfume, stability and longer use. Staff and workers particulars : Administration
31
Account
11
Marketing
5
EDP
3
Time office
7
Stores
12
Security
20
Transport
4
Production
120
Laboratory
27
Maintains
63
Civil
9
Electrical
151
Soap
170
Total
633
Jocil was stared with 160 employees Due to diversification of its activities in Manufacturing of products and expansion of its production its mane power increased to 529 employees working in 28 sections at various cadres.
INDUSTRY PROFILE INDUSTRIAL LICENSE: The Government has given permission for the manufacture of processed fatty acids and individual fatty acids with the annual licensed capacity of 89000 metric tons and glycerin with the licensed capacity of 900 metric tons toilet soaps with a licensed capacity of 5000 metric tons. From time to time the company revised its capacities with the cooperation from the Department of Industrial Development, Ministry of Industry, Government of India, New Delhi. The present licensed capacity of fatty acids is 3,75,000 metric tons, glycerin is 1800 metric tons, and toilet soaps 15000 metric tons. As the value of fixed assets envisaged in the project is less than Rs.3.3crores the industrial license is not required for setting of this project. The company has been registered with directorate General of Technical Development (DGTD), Government of India, New Delhi bearing No. DGTD/HQ/D-S-S/R4733/C-26(N)/SE/79 with their letter No. shop dated 21-5-1979 and soap /2(39) 79 dated 31-3-1990 for the manufacture of 1.
Processed Fatty Acids
2.
Glycerin
3.
Toilet soaps
9,000 900 5,000
PRODUCTION FACILITIES OF FATTY ACIDS: Adapting Latest Technologies .... High Pressure Fatty Splitting Plant .... Fatty Acid Fractionation Plant .... Sweet Water Evaporation Plant .... Fully Automated & Centralised Control System .... Proven Technologies of Gianazza, Sulzer and CMB .... Equipped with Facilities/ Plants to Process Different Oils at a time
Plant Control through DeltaV Distributed Control System …. Supplied by Emerson Process Management …. Advanced Diagnostics & Process Performance Monitoring …. Remote Calibration and Diagnostics of Field Instruments …. Uses latest Foundation Fieldbus & HART Field Instruments
PRODUCTS OF JOCIL: JOCIL has setup a modern plant for the manufacturing of Fatty Acids, toilet soaps and refined glycerin. The major equipment wa s imported with latest technology. The products manufactured are of international standards to suit different industrial users. JOCIL is manufacturing two types of products. 1.Industrial Goods (Chemicals) 2.Consumers Goods (Soaps) Fatty Acids, refined Glycerin and other Fatty Acids pitches fall under the category of industrial goods where as soaps come under the category of consumers goods. Fatty Acids are manufactured from vegetable oils and fats there are different types of Fatty Acids for different industrial applications. The following are the different kinds of Fatty Acids, which can be manufactured in JOCIL.
1. Crude Fatty Acids of vegetable Acids & Fats. 2. Distilled Fatty Acids of vegetable Acids & Fats. 3. Hydrogenated Fatty Acids of vegetable Acids & Fats. Out of the above type of Fatty Acids JOCIL is manufacturing the following Fatty Acids
with
major
portion
of
their
sales.
1. Stearic Acid 2. Oleic Acid 3. Distilled & Hydrogenated Fatty Acids.
STEARIC ACID: In the Stearic Acid, different grades are produced with standard specifications for different industrial consumers. The following are the different grades of Stearic Acids consumed by different industries in manufacturing their own industrial products. 1. Stearic acid of 11 grades 2. Distilled hydrogenated Rice Bran Fatty Acid 3. Distilled Rice Bran Fatty Acid 4. Oleic Acid Commercial 5. Soap Noodles 6. Glycerine of two types (a)
Chemically Pure Grade
(b)
Industrial White Grade
Capacity per day at present: 1.Stearic acid & Ferry acid
--
100 metric tons per day
2.Soap noodles
--
70 metric tons per day
3.Glycerine
--
450 metric tons per day
Go down capacity: Guntur(Factory)
:
750 tons
Delhi Calcutta
: :
200 tons 100 tons
Various grades of Stearic Acids: JOTEX GRADE – JOTEX
Used in Drugs, Pharmaceuticals,
SPECIAL
Cosmetics, Chemicals & Plastics
GRADE JOSTRIC SPECIAL GRADE JOSTRIC GRADE
Chemicals, Calcium Carbonate Metal Polish, Grease, Metallic Polish,
JOSTRIC 9
PVC Stabilizers and Chemicals Metal Polish, Grease, Metallic Polish,
JOSTRIC 11 JOMEL RUBBER GRADE ECONOMY
PVC Stabilizers and Chemicals PVC Rubber, Cement & Paints Rubber, Metallic Polish Rubber, Metallic Polish, Grease
RESEARCH METHODOLOGY INTRODUCTION: Research methodology is a way to systematically solve the research problem.
In it
various types that are generally adopted by are search in studying his research problem along with the logic behind problem. Research means a search for knowledge.
RESEARCH PROBLEM: A research problem is general refers to some difficulty, which a researcher experience in the content of either the cortical or practical situation and wants to obtain a solution for the same. According to this project the organization is facing some problem with the workers regarding their welfare facilities so the organization needs the level of satisfaction and their opinions. So this topic is given to me for analysis. 2.1 RESEARCH DESIGN: “A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. IMPORTANT FEATURES OF RESEARCH DESIGN:
1) It provides the sources and types of information relevant to the research problem. 2) It will suggest which approach will be used for gathering and analyzing the data. 3) It provides the time and cost budget, since most studies are done under these two constrains.
Sample Design: A sample design is a definite plan for obtaining a sample from a given population: Sample unit
: Employers as well as workers in JOCIL LIMITED .
Size of sample
:
75
Sample design
:
Simple random sampling design
Stratified Sampling:
Under stratified sampling the population is divided into several sub population that are individually more homogeneously than that of the total population and then we select item from each strain to constitute a sample. Scaling technique:
Rating scale technique is used in this study. The rating scale involves qualitative description of a limited No of aspects of a thing or of the trades of person. When we use rating we jute an object in absolute terms against some criteria. Pretesting: In order to test the suitability of the questionnaire, the research ha s gonefor, pretesting with 2 respondents in the employees; this helped the researcher to make the questionnaire more, simple and practical oriented. Pilot study: The researcher visited the organization, selected for the study thrice and got permission for doing research study from the personnel manager, who had formal discussions with Him to know about the feasibility of conducting the study in the industry.
METHODS OF DATA COLLECTION Primary data: The data is collected by Questionnaire method. Questionnaire is considered as heart a survey opinion. A Questionnaire is constructed and a Questionnaire is given to each worker for this responds. The response are collected for them and used for analysis. In this way the primary data is collected.
SECONDARY DATA: Secondary data collected from journals and internet.
Chi-square test: X2 test for independence of attributes helps in checking whether two attributes are related or not. 1.
Observation recorder and used are collected on random basis.
2.
All the items in the sample must de independent.
3.
No group should contain very few items say less than 10. in case where the frequencies of adjoining groups. So that the new frequencies of adjoining groups. So that the new frequencies become grater than 10 samples statisticians.
4.
The overall number of items must also be reasonably large.
It should
normally be at least 50, however small the number of groups may be. 5.
The constrains must be liner. Constraints which involve linear equation in the cell frequencies of a contingency table are known as linear, constraints.
STEPS INVOLVED IN APPLYING CHI-SQUARE TEST: 1) First of all calculate the expected frequencies on the ;basis of given hypothesis or on the basis of null hypothesis, the expected frequency for any given cell is worked our as under. The expected frequency of any cell =
(Row total for the row of that cell) X (Column total for the column of that cell)
any cell Grand total
1.
Obtain the difference between observed and expected frequencies and find out the squares of such differences.
2.
(i.e.) Calculate (Oij - Eij)2
3.
. Divide the quantity (Oij - Eij)2 corresponding
obtained as started above by the
expected frequency to get (Oij - Eij)2
/ Eij and his
should be done for all frequencies.
4.
Find the summation of the (Oij - Eij)2 / Eij values (or) what we call.
LIMITATIONS 1.
The survey was conducted within limited time frames so that a few short comings may be expected.
2.
The respondent’s personal basis may be another factor which is
incontrollable. 3.
The findings of the survey is strictly based on the responses of employees.
4.
The factory functions in shift system so all shift workers did not take part in the sample.
5.
Due to lack of time, the surely was contacted only 50 Respondents.
DATA ANALYSIS AND INTERPRETATION
(!) ARE YOU FULLY AWARE OF PERFORMANCE APPRAISAL SYSTEM IN YOUR ORGANAIZATIN S NO 1 2 TOTAL
DESCRIPTION YES NO
NUBER 55 20 75
PERCENT 74 26 100
YES NO
INTERPRETATION: The above table reveals that 74% of employees are fully aware of p erformance appraisal system, 26% of employees has no idea about performance appraisal system
CONCLUSION
From the above table it is observed that most of the employees are fully aware of performance appraisal and some employees are not aware of performance appraisal
(2) Does the performance appraisal is done based on what S NO
DESCRIPTION
NUBER
PERCENT
1
Performance
43
57.3
2
qualification
25
33.33
3
No of hours
7
9.33
0
0
working 4
None of these
Performance qualification No of hours w orking
INTERPRETATION:
The above table reveals that 57.3% employees performance appraisal is done based on performance, 33.33% of employees performance appraisal is done based on qualification, and 9.33% of employees performance appraisal is done based on number hours of working
CONCLUSION From the above table it is observed that maximum performance appraisal is done based on performance some times it done based on qualification.
(3) What does performance appraisal determines
S NO
DESCRIPTION
NUBER
PERCENT
1
Increments
39
52
2
Rewards
21
28
3
Bonus
15
20
Increments Rewards Bonus
INTERPRETATION: The above table reveals that 52.3% of performance appraisal determines increments 22% of performance appraisal determines rewards and 20% of performance appraisal determines bonus.
CONCLUSION From the above table it is observed that maximum performance appraisal determines increments and some times it determines rewards and bon us.
(5) Does the performance appraisal leads to
S NO 1 2 3
DESCRIPTION Self development Group development Organizational
NUBER 16 15 31
PERCENT 21.3% 20 % 41.3%
4
development Society
13
17.3%
development
Self development Group development Organizational development Society development
INTERPRETATION: The above table reveals that 21.3% of performance appraisal leads to Self development , 20% of performance appraisal leads to group development,41.3% of performance appraisal leads to Organizational development and 17.3% of performance appraisal leads to Society development CONCLUSION From the above table it is observed that maximum performance appraisal leads to Organizational development, and some times it leads to self, group, and society development.
(5) Does performance appraisal suggest the ways of improving employee performance?
S NO
DESCRIPTION
NUBER
PERCENT
1
YES
58
77.33
2
NO
17
22.66
YES NO
INTERPRETATION: The above table reveals that 77.33% performance appraisal improves the employees performance 22.66% of performance appraisal does not improves the employees performance
CONCLUSION
From the above table it is observed that most the time performance appraisal improves employees performance and some times it does not improves the employees performance
(6) Does the performance appraisal evaluation identifies the training and development needs
S NO
DESCRIPTION
NUBER
PERCENT
1 2 TOTAL
YES NO
58 17 75
77.33% 22.66 100
YES NO
INTERPRETATION: The above table reveals that 77.33% performance appraisal identifies training and development needs 2.66% of performance appraisal does not identifies the training and development needs
CONCLUSION
From the above table it is observed that most the time performance appraisal identifies training and development needs and some times it does not identifies the training and development needs
(7) Does the management is giving information about process of performance appraisal system
S NO 1 2 3
DESCRIPTION Fully Partially No
NUBER 50 15 10
PERCENT 66.66 20 13.33
Fully Partially No
INTERPRETATION: The above table reveals that 66.66% of employees saying that management is giving information about process of performance appraisal system, 20% of employees saying that management is t giving partial information about a process of performance appraisal system and 13.33% of employees saying that managemen t is not giving information about a process of performance appraisal CONCLUSION From the above table it is observed that most of the times management is giving information about process of performance appraisal system. And some times management is not giving information about a process of performance appraisal
(8) are you finding any difficulties while evaluating performance?
S NO
DESCRIPTION
NUBER
PERCENT
1
YES
17
22.66%
2
NO
58
77.33%
YES NO
INTERPRETATION: The above table reveals that 77.33% employees does not finding a ny difficulties while evaluating performance appraisal 22.66% of employees finding difficulties while evaluating performance appraisal
CONCLUSION From the above table it is observed that most of the employees does not finding any difficulties while evaluating performance appraisal and few employees finding difficulties while evaluating performance appraisal
(9)opinion about process of performance appraisal system in their organization S NO
DESCRIPTION
NUBER
PERCENT
1 2 3
Excellent Good Moderate
38 20 17
50.66 26.66 22.66
Excellent Good Moderate
INTERPRETATION: The above table reveals that 50% of employees have excellent opinion on performance appraisal system, 26.66% of employees have good opinion on performance appraisal system and 22.66% of employees moderate opinion on process of performance appraisal CONCLUSION From the above table it is observed that half of the employees feel that process performance appraisal system is good and very few of employees feel that it is ok but not that much.
(10) What performance appraisal method is following in your organization? S NO 1 2
DESCRIPTION NUBER 360 degree appraisal 22 Self appraisal 55
PERCENT 29.33% 70.66%
360 degree appraisal Self appraisal
INTERPRETATION: The above table reveals that 70.66% employees says that 360 degrees appraisal is following in their organization and29.33% of employees says that self appraisal method is following in their organizational
CONCLUSION From the above table it is observed that most of the time self appraisal method is following and very few times 360appraisal method is following for evaluating performance.
(11) How is the present used method? S NO 1 2 3
DESCRIPTION Excellent Good Moderate
NUBER 40 14 21
PERCENT 53.33% 18.66% 28%
Excellent Good Moderate
INTERPRETATION: The above table reveals that 53.33% of employees have excellent opinion on performance appraisal system, 18.66% of employees have good opinion on performance appraisal system and 28% of employees moderate opinion on process of performance appraisal CONCLUSION From the above table it is observed that half of the employees feel that process performance appraisal system is good and very few of employees feel that it is ok but not that much.
(12) Do you suggest introduction of following appraisal system in your organization S NO
DESCRIPTION
NUBER
PERCENT
1
Performance &
19
25.33
2
potential Self appraisal
23
30.66
3
Team appraisal
14
18.66.
4
360 degree
19
25.33
appraisal14
Performance & potential Self appraisal Team appraisal 360 degree appraisal14
INTERPRETATION: The above table reveals that 25.33% of employees suggest Performance & potential , 30.66% of employees suggest Self appraisal,18.66% of employees suggest team appraisal and 25.33% of employees suggest 360 degree appraisal CONCLUSION From the above table it is observed that half of the employees suggest 360 degree appraisal and team appraisal.
(13) Self appraisal is best from evaluating one’ performance
S NO
DESCRIPTION
NUBER
PERCENT
1 2 TOTAL
YES NO
58 17 75
77.33% 22.66 100
YES NO
INTERPRETATION: The above table reveals that 77.33% employees says that self appraisal is best for evaluating one’s performance 22.66% employees says that self appraisal does not suits to evaluating one’s performance CONCLUSION
From the above table it is observed that most the time self appraisal gives positive results. some times it does not work properly.
(14) Who is the best person to conduct performance appraisal
S NO 1 2 3 4
DESCRIPTION Superior Manager Subordinate Self
NUBER 46 9 3 17
PERCENT 61.33% 12% 4% 22.66%
Superior Manager Subordinate Self
INTERPRETATION: The above table reveals that 61.33% employees says that superior is best person to evaluate performance , 12% of employees says that manager is best person to evaluate performance ,4% of employees says that subordinate is best person to evaluate performance, and 22.66% of employees says that self appraisal is best. CONCLUSION From the above table it is observed that half of the employees’ opinion is that superior is the best person to evaluate ones performance. And some employees prefer subordinate, and manager to evaluate performance.
(15) Performance will assessed
S NO
DESCRIPTION
NUBER
PERCENT
1 2
Annually Quarterly
65 10
89.6% 13.3%
Annually Quarterly
INTERPRETATION: The above table reveals that 89% employee’s performance assessed annually and only 13.3% of employee’s performance assessed quaterly.
CONCLUSION From the above table it is observed that most the time performance assessed annually, and some time it assessed quarterly
(16) Which one is more helpful for evaluating better performance . S NO
DESCRIPTION
NUBER
PERCENT
1 2
Formal Informal
23 26
30.66% 34.6%
3
Both
26
34.6%
Formal Informal Both
INTERPRETATION: The above table reveals that 30.66% employees says that formal appraisal is best to evaluate performance ,34.6% of employees says that informal appraisal is best to evaluate performance ,and 34.6% of employees says that both appraisal are best to best evaluate performance. CONCLUSION From the above table it is observed that employees prefer formal, informal appraisal for evaluating the performance
Any motivational program is needed to develop performance appraisal system
S NO
DESCRIPTION
NUBER
PERCENT
1 2
YES NO
45 30
60% 40%
INTERPRETATION: The above table reveals that 60% employees says that motivation program is needed 40% employees says that they don’t want any motivational program. CONCLUSION From the above table it is observed that most of the employees preferring motivational program
Where you stand in analysis of performance analysis S NO
DESCRIPTION
NUBER
PERCENT
1 2
Excellent Good
24 37
32% 49.33%
3
Moderate
14
18.66%
INTERPRETATION: The above table reveals that 32% employees have excellent idea on performance appraisal,49.44% of employees have good understanding on performance appraisal, 18.66% of employees have better understanding on performance appraisal CONCLUSION From the above table it is observed that most of the employees have good understaning of performance appraisal system
Comments on performance appraisal system your organization
S NO
DESCRIPTION
NUBER
PERCENT
1 2
excellent Moderate
58 17
77.33% 22.66
TOTAL
75
100
INTERPRETATION:
The above table reveals that 77.33% employees says that performance appraisal system is good , 22.66% employees says that performance appraisal is ok but not that much CONCLUSION
From the above table it is observed that most of employees have good opinion on their performance appraisal system..
SUGGESTIONS
Conducting Employee Performance Review Tips
Fairly short suggestions on conducting the performance review meeting, starting with greeting, summary, and going through strengths, weakn esses, feedback, salary and closing.
HR Practice Tip: Reduce the Pain of Performance Evaluations
Training managers to perform effective and consistent evaluations is essential, since both managers and employees often are uncomfortable discussing performance. The training should include warning supervisors to refrain from the following eight c ommon errors that can distort and even invalidate the evaluation process
Alternative Effective performance appraisals and evaluations
The best performance reviews let managers and employees communicate -- share ideas, opinions, and information. Unfortunately, most traditional reviews put managers into the position of uncomfortable judges, ostensibly telling employees how their work either fit the bill -- or didn't. Possibly because of this, most traditional reviews are no better than the manager's off-the-cuff judgments, and some may be illegal. Because of these problems, new types of reviews are coming into play. Most require that evaluations be done not for raises, promotions, or bonuses, b ut for growth, development, and communication. The most important aspect in every case is communication between the employee and other people, instead of one-way communication, for higher performance.
Easing the Performance Appraisal Process
By Nanette Miner - Performance appraisals can be stressful for both the manager and the employee receiving the appraisal. The process of writing and delivering the appraisal can be eased, however, by following these five guidelines.