PERFORMANCE APPRISAL With reference to JOCIL Ltd, GUNTUR A Project Report submitted in partial fulfillment of the requirement for

the award of MASTERS DEGREE IN BUSINESS ADMINISTRATION By P.SUJITH CHANDRA (Roll No: 1225111242)

GITAM INSTITUTE OF MANAGEMENT GITAM UNIVERSITY (Established U/S 3 of UGC Act, 1956) VISAKHAPATNAM (2011-12)

ACKNOWLEDGEMENT

It is my pleasure to acknowledge and express my gratitude to all those who helped me throughout in the successful completion of this project. I am very thankful to Sri. Mr N L Prasad (L.O) JOCIL Ltd, Guntur for extending support throughout the project. I wish to express my gratitude to Prof K Siva Rama Krishna, Dean & Principal, GITAM Institute of Management, GITAM University, Visakhapatnam, for giving me this valuable opportunity to experience the work culture in an organization. I am grateful to Prof P.Sheela (MBA,Ph.D), GITAM Institute of Management, GITAM University, Visakhapatnam for his/her continuous guidance to accomplish this project work, successfully.

(Name of the student & Roll No.) P.Sujith Chandra 1225111242

CERTIFICATE

This is to certify that the Project work entitled Study on Performance appraisal at JOCIL Ltd, Guntur has carried out and submitted by Mr. PEDDI SUJITH CHANDRA (1225111242) under my guidance by in partial and fulfillment of his Masters of Business Administration at School Of Management Studies, University of Hyderabad.

Prof P.Sheela MBA,Ph.D Professor Gitam Institute Management Gitam University

DECLARATION

I hereby declare that this project entitled Study on Performance appraisal at JOCIL Ltd, Guntur has been done by me under guidance of Prof P.Sheela MBA,Ph.D This project partial fulfillment of the award of degree in Masters in Business Administration.

Place : Date :

PEDDI SUJITH CHANDRA 1225111242 Gitam Institute Management Gitam University

INDEX
CHAPTER 1.1 1.2 CHAPTER 2.1 2.2 CHAPTER 3.1 3.2 CHAPTER 4.1 CHAPTER 5.1 5.2 I II 1 1 3

Human Resource Management Performance appraisal 2

Company profile Business and Strategies 3

9 15

Research Research Methodology 4

21 22

Analysis 5

30

Findings Suggestions and conclusion

49 50 51 54

Questionnaire Bibliography

EXECUTIVE SUMMARY

Performance appraisal is the basic activity of human resource management of which Employer & Employee will assess their strengths and weakness for the sake of providing compensation , like increments and salaries. This concept adopted by the most of the organizations is an important part of the organization. As a manufacturing unit JOCIL Ltd. adopted the performance appraisal technique to assess their employees for the better growth organization standards. To determine the satisfaction level of the employee and level of knowledge to the people in the organization a study has been conducted and results obtained were descriptively analysed. To crosscheck the results interaction with the employee was also done. The objective of study was designed to consider the fallowing objectives: To study the performance appraisal method conducting by the JOCIL Ltd. To analyze the awareness and satisfaction of the employee . To identify how far organization succeed in conducting performance appraisal.

A sample of 80 employees was taken from different levels such as engineers, supervisors, and operators. The data was collected from questionnaire which was prepared on the basis of appraisal form of the company and analysis of data was carried out based on the questionnaire data and interview method. It could be concluded that employee were little satisfied with the system and methodology of system found was strictly followed by the organization.

CHAPTER-1 INTRODUCTION 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 contribute to the achievement of the objectives of the business Human resource management is a collective implementation of managerial functions such as planning, organizing, directing and, controlling to reach the organization goals

Human Resource Management: Scope

1. Personnel aspect-This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity etc. 2. Welfare aspect-It deals with working conditions, facilities and amenities such as canteens, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc. 3. Industrial relations aspect-This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, workers participation in management etc.

Functions of HRM:

Based on the organization of task and implementation of methods we have two types of functions, they are:

Managerial functions and Objective functions

Managerial functions are also called the core functionalities of human resource management, which will be deals with the planning, organizing, Directing and, Controlling. Among these directing is also called the leading. Objective functions are the active functionalities of human resource management which has substantially organizing capability in according to requirements of the organization. These are drawn from the managerial functions for successful achievement of the organizational tasks. These includes the...

Employee planning. Staffing. Training and Development. Employee evolution. Pay roll management. Welfare of the employee.

Employee evolution is the major task for an organization because employee performance will be done and motivation factor to the extent of the employee requirement. It includes the Conducting the performance appraisal, feedback generation, giving the extra inputs that requires for the employee, compensation planning, Reviewing and auditing manpower management in the organization etc.

PERFORMANCE APPRAISAL

Performance appraisal is a formal system that evaluates the quality of a workers performance; an appraisal should not be viewed as an end in itself, but rather as an important process within a broader performance management system that links: Organizational objectives Day-to-day performance Professional development Rewards and incentives

What is the purpose of performance appraisal?

Professional development such as identifying strengths and weaknesses in performance, implementing strategies for improvement Determining organizational training and development needs Making and validating administrative decisions like pay, promotion, placement, and termination.etc. Identifying systemic factors that are barriers to, or facilitators of, effective performance.

Objectives of Performance appraisal:

To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior subordinates and management employees.

To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future.

To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.

To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.

To reduce the grievances of the employees

Scope of Performance appraisal

Provide employees with a better understanding of their role and responsibilities. Increase confidence through recognizing strengths while identifying training needs to improve weaknesses.

Improve working relationships and communication between supervisors and subordinates.

Increase commitment to organizational goals; develop employees into future supervisors. Assist in personnel decisions such as promotions or allocating rewards, and allow time for self-reflection, self-appraisal and personal goal setting.

Effects of Performance appraisal On Careers of Employee:

Performance appraisal helps to identify the hidden talents and potential of the individuals. Identifying these potential talents can help in preparing the individuals for higher responsibilities and positions in the future. The performance appraisal process in itself is developmental in nature. It is also closely linked to other HR processes like helps to identify the training and development needs, promotions, demotions, changes in the compensation etc. A feedback communicated in a 10

positive manner goes a long way to motivate the employees and helps to identify individual career developmental plans. Based on the evaluation, employees can develop their career goals, achieve new levels of competencies and chart their career progression. Performance appraisal encourages employees to reinforce their strengths and overcome their weaknesses Types Of Performance Apprisal: 1.Critical Incident Method: This format of performance appraisal is a method which is involved identifying and describing specific incidents where employees did something really well or that needs improving during their performance period. 2. Weighted checklist method: In this style, performance appraisal is made under a method where the jobs being evaluated based on descriptive statements about effective and ineffective behavior on jobs. 3. Paired comparison analysis: This form of performance appraisal is a good way to make full use of the methods of options. There will be a list of relevant options. Each option is in comparison with the others in the list. The results will be calculated and then such option with highest score will be mostly chosen. 4. Graphic rating scales: This format is considered the oldest and most popular method to assess the employees performance. In this style of performance appraisal, the management just simply does checks on the performance levels of their staff. 5. Essay Evaluation method: In this style of performance appraisal, managers/ supervisors are required to figure out the strong and weak points of staffs behaviors. Essay evaluation method is a non-quantitative technique. It is often mixed with the method the graphic rating scale. 6. Behaviorally anchored rating scales: This formatted performance appraisal is based on making rates on behaviors or sets of indicators to determine the effectiveness or ineffectiveness of working performance. The form is a mix of the rating scale and critical incident techniques to assess performance of the staff. 7. Performance ranking method: The performance appraisal of ranking is used to assess the working performance of employees from the highest to lowest levels. Managers will make comparisons of an employee with the others, instead of making comparison of each employee with some certain standards. 8. Management By Objectives (MBO) method: MBO is a method of performance appraisal in which managers or employers set a list of objectives and make assessments on their performance on a regular basis, and finally make rewards based on the results achieved. This method mostly cares about the results achieved (goals) but not to the way how employees can fulfill them.

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9. 360 degree performance appraisal: The style of 360 degree performance appraisal is a method that employees will give confidential and anonymous assessments on their colleagues. This post also information that can be used as references for such methods of performance assessments of 720, 540, 180 10.Forced ranking (forced distribution): In this style of performance appraisal, employees are ranked in terms of forced allocations. For instance, it is vital that the proportions be shared in the way that 10 or 20 % will be the highest levels of performances, while 70 or 80% will be in the middle level and the rest will be in the lowest one. 11. Behavioral Observation Scales: The method based on the scales of observation on behaviors is the one in which important tasks that workers have performed during their working time will be assessed on a regular basis.

Fundamentals of an appraisal system

To develop a successful performance appraisal system, two criteria need to be met Relevance and applicability to everyday work practice Acceptability to appraisers and workers. A systematic approach to performance appraisal can help ensure that these two important criteria are met. How to conduct a performance appraisal The following five-step approach to conducting a systematic performance appraisal is recommended: 1. Identify key performance criteria 2. Develop appraisal measures 3. Collect performance information from different sources 4. Conduct an appraisal interview 5. Evaluate the appraisal process. 12

Step 1: Identify key performance criteria Perhaps one of the most challenging aspects of setting up a performance appraisal is deciding what to assess. In essence, four key dimensions of performance should be considered in a performance appraisal. Key Dimensions of Performance: Competencies Behaviors Results / outcomes Organizational citizenship behaviors : Actions that are over and above usual job responsibilities To ensure that the performance criteria are relevant to work practice and acceptable to appraisers and workers: i. Base the performance criteria on an up-to-date job description ii. Develop criteria in consultation with appraisers and workers Step 2: Develop appraisal measures Once clear and specific performance criteria have been developed, the next step is to decide how to assess workers performance. It is recommended that a structured and systematic approach is taken to assessing performance. Problems that arise when an unstructured blank sheet approach is used include: Increased chance of appraiser errors Knowledge, skills and abilities most critical to job performance may be overlooked Reduced consistency between appraisers Perceptions of subjectivity in evaluations, which may in turn, reduce workers satisfaction with, and acceptance of, appraisals. : Knowledge, skills, and abilities relevant to performance : Specific actions conducted and / or tasks performed : Outputs, quantify able results, measurable outcomes and achievements, objectives attained

Step 3: Collect performance information from different sources

Once the appraisal measures are developed, the next step involves collection of accurate performance information. A common trap is to begin noting observations of workers just before conducting appraisals. This is likely to give an inaccurate picture of a workers performance. Ideally, workers performance should be observed in a systematic way over time .This method ensures the accuracy of information about their performances. 13

Traditionally, it has been the sole responsibility of managers / supervisors to assess performance. However, other organizational members can be a valuable source of information as they are likely to have exposure to different aspects of a workers performance. This approach is known as 360-degree feedback. For instance, coworkers can provide valuable information on teamwork skills, and subordinates can provide useful information on leadership style. Five different sources of performance appraisal information are considered here: i. Manager / supervisor appraisals ii. Self appraisals iii. Coworker appraisals iv. Subordinate appraisals v. Client appraisals. Step 4: Conduct an appraisal interview The next step in a performance appraisal is to conduct the appraisal interview. The two central purposes of the appraisal interview are to: Reflect on past performance to identify major achievements, areas that require further development, and barriers / facilitators to effective performance Identify goals and strategies for future work practice. Step 5: Evaluate the appraisal process As with any organizational system, the performance appraisal process should undergo regular review and improvement.

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CHAPTER-2 Company Profile:

JOCIL is a Public Limited Company incorporated in February 1978 as Andhra Pradesh Oil and Chemical Industries Ltd (APOCIL). Listed in National Stock Exchange (NSE) Madras and Hyderabad Stock Exchanges Renamed as Jayalakshmi Oil and Chemical Industries Limited in 1982. Became a Subsidiary of The Andhra Sugars Ltd (ASL) on 27 October 1988. ASL Group of Companies have diversified interests in Sugar, Chemicals such as Caustic Soda, Acetic Acid, Industrial Alcohol, Sulfuric Acid, Aspirin etc., Petrochemicals and Textiles at various locations in Andhra Pradesh, India. ASL is also the Sole Supplier of Rocket Fuel (UDMH) to ISRO. It renamed once again as Jocil Limited in 1992. 30 years of experience in the field of manufacture of Stearic Acid Flakes, Fatty Acids, Toilet Soap, Soap Noodles and Refined Glycerin. Stearic Acid Flakes are available in various grades for use in Pharmaceuticals, Cosmetics, Textiles, Paints, Plastics, Tyres, Tread Rubber, Metal Polish and Other Industries. A 6 Mw Biomass Cogeneration Power Plant commissioned in 2001, to meet captive requirements of Steam & Power, Exports Surplus Power to APSPDCL (Public Utility Company). Continuous unbroken dividend paying record since 1988 89. It has Celebrated Silver Jubilee in the year 2003. Company has Awarded ISO 9001:2000 Certification by DNV in year 2004, Ventured into Wind energy in the Year 2005.Wind farm is registered as CDM Project with UNFCCC in Year 2009. CODE OF CONDUCT DIRECTORS The Directors of the Company hereinafter referred to as "The Board" is committed to adopting, besides any of its obligations under relevant laws or regulations, the best relevant practices for corporate governance.

This Code of best practices represents a blend of law, regulation and appropriate voluntary practices that will enable the Company to attract financial and human capital, perform efficiently and to generate economic value for shareholders while respecting the interests of stakeholders and society as a whole. The principal attribute of the code is to ensure effective corporate governance, to enable the Board to approve the Company's strategy and major business plans and decisions. A code of conduct (hereinafter referred to as "Code") is adopted as per the stipulations of Listing Agreement which is applicable to all the Directors of the Company.

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CODE The Board will operate within all applicable laws and regulations. The Board will act within and in accordance with the powers granted to them by the Company's articles The Board will act bonafide in the Company's interest, to use its powers and information available for the business purposes and not exercise them for any collateral purpose and will ensure that the Company is managed with due diligence, due regard to the interest of all stakeholders, and essentially for the benefit of all its shareholders. The Board will in all sincerity endeavor that the Company's activities ultimately add to the economic development of the Country and further the national interest.

The Board will function within the framework of the economic, development and legal policies of the Government of India and shall not undertake nor participate in any task, debate or conversation that can reflect unfavorably on the dignity of our Nation or go against its interests The Board will meet regularly, at least once every quarter with prime concentration on strategic issues and their approval, policy and control, delegation of powers, specifying issues that remain in the Board's domain

The Board will consider the following matters as and when deemed appropriate.

Annual operating plans and budgets and any updates. Capital Budgets and any updates. Quarterly results for the Company and its operating divisions or business segments.

Minutes of meetings of audit committee and other committees of the Board. Show cause, demand, prosecution notices and penalty notices which are materially important.

Fatal or serious accidents, dangerous occurrences, any material effluent or pollution problems.

Any material default in financial obligations to and by the Company, or substantial non-payment for goods sold by the Company.
16

Any issue which involves possible public or product liability claims of substantial nature.

Details of any joint venture or collaboration agreement. Transactions that involve material payment towards goodwill, brand equity, intellectual property.

Significant labour problems and their proposed solution. Any significant development in Human Resources/Industrial Relations front like signing of wage agreement, implementation of Voluntary Retirement Scheme, etc.

Sale of material nature of investments, subsidiaries, assets, not in normal course of business.

Quarterly details of foreign exchange exposures and the steps taken by management to limit the risks of adverse foreign exchange rate movement, if material.

Non-compliance of any regulatory, statutory nature or listing requirements and shareholders service such as non-payment of dividend, delay in share transfer.

Board will present a balanced, clear assessment of the Company's position. The Board will ensure that the Directors' report shall include a narrative consistent with the figures in the accounts of the performance and prospects. The Board will ensure that the Annual Report shall include, inter-alia , a Management's Discussion and Analysis Report as per SEBI guidelines and the Board's Report on Corporate Governance (duly certified by the Auditors).

CODE OF CONDUCT MANAGERS

The Code of Ethics & Conduct for the Senior Managers of the Company helps to maintain the standards of business conduct for Jocil Limited and to ensure the compliance with legal requirements. The purpose of the Code is to deter wrong doing and promote ethical conduct. The matters covered in this Code are of utmost importance to the Company, Shareholders, business partners and other stakeholders. Further these are essential so that the Company can conduct the business in accordance with high ethical values. Managers of the Company 17

are the custodians of Information and assets. As such, the Code of Ethics for the Senior Managers of the Company is codified as under

CODE

The Code is applicable to the Senior Managers of the Company (hereinafter referred to as "Managers") as stipulated by the Management by way of Office Circular from time to time.

Code

of

Ethics

&

Conduct

for

the

Senior

Managers

of

the

Company:

Managers will -

Affirm the code on annual basis as required by the revised clause 49 of the Listing Agreement. avoid accepting any offer, payment, gift or anything of value from customers, vendors, consultants etc. that is perceived as intended, directly or indirectly, to influence any business decision, any commitment of fraud or opportunity for the commitment of any fraud.

Proactively promote and be an example of ethical behavior as a responsible partner among peers, in the work environment and the community. Share knowledge and maintain skills important and relevant to stakeholders' needs. Act in good faith, responsibly, with due care, competence and diligence, without misrepresenting material facts or allowing one's independent judgment to be subordinated.

comply with rules and regulations of all Public Authorities in all the geographies in which Jocil Limited operates Respect the confidentiality of information acquired in the course of one's work except when authorized or otherwise legally obligated to disclose. provide all stakeholders with information that is accurate, complete, objective, relevant, timely and understandable.
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Strive to achieve responsible use of and control over all assets and resources employed or entrusted not use confidential information acquired in the course of one's work for personal advantage.

act with honesty and integrity, avoiding actual or apparent conflicts of interest in personal and professional relationships

The Company has well defined policies for

Quality Consumer Safety Safety, Health and Environment (SHE)

Company's Philosophy:

To Conduct its Operations with Honesty, Integrity and Transparency To be the Market Leader in its Field of Operations through Continual Improvement in Efficiency and Quality of Products & Services. To be a Successful Profit Making Organization To Serve Society through Industry To care for the Environment and the World in which we live To have Concern for Employees, Shareholders, Customers and Business Associates alike.

Business and Strategies :

1.

Business

--->

Oleochemicals

--->

Stearic

Acid

--->

Specifications
Product offered in the form of free flowing flakes, in different grades and to suit various industrial applications. User Industries:

19

* Rubber * PVC * Cosmetics * Metal Polish * Paints * Tyres * Food Pharmaceuticals * Speciality Chemicals. Customers : *MRF * Elgitread * Nestle * HUL * Clariant * BASF * Century harma * Sun Pharma etc. Also manufactures High purity products like 90% minimum Stearic Acid

Customer specific grades to suit specific industrial applications

2.Business ---> Oleochemicals --->Distilled Fatty Acids ---> Specifications

Distilled Fatty Acids Manufactured from Vegetables Oils like Coconut Oil, Palm Kernel Oil, and Rice Bran Oil. User Industries * Toilet Soap * Speciality Chemicals * Industrial Greases etc. Customers include * HUL * BASF * Emami * Bayer ABS Limited. 20

Fractionated Products Manufactured Caprylic, Capric, Lauric, Myristic, Palmitic, Stearic, Oleic, Erucic & combination of these fractions, with the Technology Sulzer. A few of these are under trial production and will be available soon for commercial sale. Refined Glycerine is a byproduct from the process of vegetable oils during the manufacture of fatty acids. Grades Offered are CP (Chemically Pure) and IW (Industrial W hite)

Business ---> Soap ---> Toilet Soap

Decades of Association with FMCG majors Trusted Partners for Brand Introduction

Contract Manufacturing Present Soap Brands

Past Soap Brands

Liril 2000 for HUL Life Buoy Skin Guard for HUL Superia Lemon Fresh for ITC Superia Soft Sandal for ITC Superia Milky Glow for ITC Superia Fragrant Flower for ITC Superia Natural Glow for ITC Superia Healthy Glow for ITC Vivel Satin Soft for ITC Vivel Ayurveda Essence for ITC Manjal for MARICO Parachute Jasmine for MARICO

Liril Icy Cool Mint for Hindustan Lever Savlon for Johnson & Johnson Chek Beauty (4 Variants) for Henkel India Margo Natural Care for Henkel India Lux Skin Carefor Hindustan Lever Rexona Coconut for Hindustan Lever
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Breeze for Hindustan Lever Margo for Calcutta Chemical Company Shikakai for Swastic Surfactants and

Product can be offered to suit Customer Requirments

Strengths
Flexibility to Manufacture Five Diffrent Grades at a time, 250 tpd of Installed Capacity. Translucent Noodles and Premium Noodles of High Quality Our Customers are: * HUL * ITC * Marico * Reckitt Benckiser * Emami * Jyothy Labs * Henkel India etc., Extending support in the areas of Research & Development of New Soap Products, Coloured Noodles,Strands and Bits Premium and Translucent Soaps like * Liril Icy Cool * Savlon * Margo Natural * Chek etc., brands have been developed at Jocil.

Contract Manufacturing
W ell known for * Product know-how

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* Strong Quality Control * Modern Facilities * Total Commitment * Responsiveness * Team W ork

Long Standing and Continuing Association with FMCG majors * HUL * Johnson & Johnson * Henkel India * Reckitt Benckiser Trusted for * High Quality of Products * Meeting Delivery Commitments * Accommodating Changing Customer Schedules Highly Responsive to Customer * Enquires * Suggestions * Complaints Support for R&D of Introductory Products Company Achievements

Continuous unbroken dividend paying record since 1988-89. Celebrated Silver Jubilee in the year 2003. ISO 9001:2000 Certification by DNV in year 2004. Ventured into Wind energy in the Year 2005. Wind farm is registered as CDM Project with UNFCCC in Year 2009.

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CHAPTER-3 RESEARCH METHODOLOGY Research is simply a systematic and refined technique of thinking, employing specialized tools, instruments, and procedures in order to obtain a more adequate solution of a problem than would be possible under ordinary means. It starts with a problem, collects data or facts, analysis these critically and reaches decisions based on the actual evidence. It evolves original work instead of mere exercise of personal. It evolves from a genuine desire to know rather than a desire to prove something. It is quantitative, seeking to know not only what but how much, and measurement is therefore, a central feature of it. OBJECTIVES:

To study the performance appraisal method conducting by the JOCIL Ltd. To analyze the awareness and satisfaction of the employee in. To identify how far organization succeed in conducting performance appraisal.

HYPOTHESIS: Does the Performance Appraisal at JOCIL Ltd. give the positive and effective response from employee? STUDY AREA AND PROBLEM DEFINITION: Conducting study on Performance appraisal at JOCIL Ltd, Guntur, which is having all type of employees as it is manufacturing unit for different products. Rating Scale Performance appraisal is using by the company by the last few years with effective and deliberate response form the employees. Performance Appraisal is one of the key factor for analyzing the employee strength and weakness to provide compensation according to their performance which is for the growth of the organization. 24

TYPE OF RESEARCH: The present project is Descriptive in nature, the data based on facts collected with the help of the tools and presented in the form of pie chart and bar-charts, and percentages, describing present status of the appraisal technique adopted by the organization.

Sample size : 80 employees(Engineers, Supervisors, and operators) Mode of data collection : Questionnaire and interview method Data collection tool : Questionnaire.

SOURCE OF DATA COLLECTION: Data is the collection of the individual records in the form of numerical, wordsetc for the evidence of research. This can be done using the collection from different methods. PRIMARY DATA: The data that has been analyzed and observed by the researcher for the first time to their knowledge. It is considered more reliable.

Primary data collected form Engineers, Supervisors and Operators, with respect to the content like their satisfaction, knowledge, feedback, Objectives of appraisal formetc.

SECONDARY DATA: This data is the statistics not gathered form immediate study at hand but for some other purpose. The secondary data for the study was collected mainly from appraisal form, website. SAMPLE DESIGN: It is definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample. POPULATION: It refers to the aggregate of data source or any aggregate from which data is collected .Unrevised is the target group of study and is finite. SAMPLE SIZE: A sample is a small portion of the population. In the study a sample of 80 employees who are engineers, supervisors and operators. TOOLS AND TECHNIQUES USED FOR ANALYSIS: The basic tools used for the study were questionnaire and interview methods. QUESTIONNAIRE: A questionnaire handed with engineers, supervisors, and operators based on the various aspects of performance appraisal form. Questionnaire was prepared on the basis content in appraisal form of the company which is helpful to understand and brings the awareness about the technique. 25

INTERVIEW: Continuous interaction with various industry people provided me knowledge on various helpful industry activities. And satisfaction and assessment level employee, training programs within in the organization came to figure in mind. The following are the techniques used to analyze the data collected. PIE DIAGRAM: The circle is divided into number of sectors representing the values of the data in identifying the accurate distribution. TABULATION: The classified data is represented in an orderly way and this calls for systematic representation of data. CAPTER-4

DATA ANALYSIS
ANALYSIS OF APPRAISAL FORM: Rating scales of performance appraisal form: As JOCIL Ltd using the method of rating scale mechanism for conducting appraisal of the employee the questionnaire was designed on the basis of the content in the appraisal form. CONTENTS OF PERFORMANCE APPRAISAL FORM: 1. Quality of work Consider accuracy, thoroughness, effectiveness. Pressure, ability to meet standards of quality. Use of time and volume of work accomplished. Work output matches the expectations established. 2. Quantity of work Competence, thoroughness, and efficiency of work regardless of volume. Neatness and accuracy. 3. Teamwork: Establish and maintain effective working relationship with others. Shares information and resources with others Follows instructions of supervisor and respond to requests from others in the team in a helpful manner. Contributing work and effort to group performance to meet agreed upon objectives and achieve team success 4. Job knowledge 26

 Application of appropriate level of technical and procedural knowledge in specific field Degree of technical competence Understanding of job procedures, methods, facts and information related to assignments. Perform duties with minimal supervision but seek guidance where and when appropriate to the job, consults the appropriate staff

5. Initiative Consider the extent to which the employees sets own constructive work practice and recommends and creates own procedures. Self-starter, develop and implement new methods, procedures, solutions, concepts, designs and/or applications of existing designs or procedures. Accepts additional challenges and responsibilities and willingly assist others, self-reliant. Completes assignment on time. 6. Interpersonal relations Consider the extent to which the employee is cooperative, considerate, and tactful in dealing with supervisors, subordinates, peers, faculty, students and others. 7. Health and safety compliance The degree to which he or she complies with or over sees the compliance with university safety rules. The following are also to be completed for supervisory personnel and members of the administrative staff.

8. Communications abilities Performance appraisal of communications includes elements as: Ability to listen and understand information; Presents information in a clear and concise manner. Knows appropriate way of communicating with immediate superiors and the management Demonstrates respect for all individuals in all forms of communication 9. Planning and organizing:

27

 Adapting to changes and using resources effectively; Maintains confidentiality as appropriate. Setting objectives, establishing priorities, developing plans; Arranging work schedules and prioritizing work to meet deadlines. Know when to ask for clarification before proceeding on a work project.

10. Problem analysis and decision making Anticipating problems and facilitate problem resolution. Willingness to make necessary and immediate decisions given incomplete information. Understanding practical and workable solutions. 11. Staff development The extent to which the individual provides guidance and opportunities to his or her staff for their development and advancement in the university. 12. Dependability Starts work at appropriate time. Respects time allowed for breaks and lunch. Helps ensure work duties are covered when absent.

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QUESTIONNAIRE ANALYSIS:
Analysis of data has taken out based on the data collected with questionnaire methodology of 80 employees as sample size.it is the interpretation of the data for the evaluation of performance appraisal system with the organization.

1. Do you have knowledge on performance appraisal system fallowed by your organization?

Parameters Responses Percentages

Yes 43 53.75

Partly 35 43.75

No 0 0

Well-known 2 2.5

The above inference shows that awareness of PA system in the organization which is 54% people knows about this and 44% people knows partly. The above data states that

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the employees must be appraised of the system and its significanceand its contribution to increase the productivity.

2. Do u Know the reason why performance appraisal system required?

No 12 3 12 40 47 % 15 3.75 15 50 58.75

Responses To give the promotions To increase the salaries To evaluate the employee ability To give the training where it needed For job rotations

yes 68 77 68 40 33

% 85 96.25 85 50 41.25

Company will conduct the performance appraisal to consider promotions, increments, and training assessments where it is required, which gives the clear idea about the employee status at the workforce.From the above table it is clearly shown that majority of employees felt that the performance apprisal used by the organisation is to increase the salaries,followed by promotions and to evaluate employees ability among which the least is for job rotations.

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3. Who will appraise you?

Parameters Responses Percentages

supervisor 18 22.5

immediate superior 44 55

HR department 7 8.75

others 11 13.75

Performance appraisal conducted by the different people on the basis of employee designation and cadre of the employee in the company. Form the above inference the performance appraisal is conducted by the supervisors , HR department and by the head of the departments. As it is manufacturing based company 22% are supervisor and asst. operators, 55% are immediate superiors , and 9% are HR professionals who conduct the apprisal for Managers. .

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4. On what basis does performance appraisal be conduct?

Parameters Responses Percentages based on work 59 73.75 relationship superiors 12 15 with presence productivity 5 6.25 and Others 4 5

Performance appraisal will conduct on the basis work and productivity of the employee. From the inference we can observe that 74% employees are appraised based on work. When the strategic enlargement is required in a company the apprisal system should focus on the work, presence of the employee with the productivity.5% of the respondents are not clear as to why performance apprisal is carried out.

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5. What kind of performance appraisal technique is used?

Parameters Responses Percentages raking scale 67 83.75 check method 1 1.25 list confidential report 5 6.25 performance test 0 0 easy method 0 0

critical incident 7 8.75

Jocil Ltd is fallowing the grading mechanism which is suitable for the manufacturing unit. The above data clearly states that the compny uses the Ranking Scale technique to appraise the employees.The data also reveals that the Performance apprisal & Easy Method is not being followed.

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6. How often performance appraisal is conducted?

Parameters Responses Percentages once year 66 82.5 in a once in 6 months 10 12.5 every week 2 2.5 once in months 2 2.5 3

From the above inference the company will conducts the appraisal yearly once but there is also a need that the apprisal system has to be carried out to find need for training and also to enhance the productivity.Jocil Ltd conducts the apprisal yearly once to give increements and promotions.

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7. What do you feel about Performance Apprisal system?

Above aveg. 1 1.25

Parameters Responses Percentages

good 35 43.75

average 38 47.5

bad 6 7.5

The above data clearly shows that majority of the respondents feel that the Performance Apprisal system is average followed with 43.7% says it good.So there is a need for the company to make the employee understand the significance of Performance Apprisal System.

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8. Does performance appraisal enhance your potential at work?

Parameters Responses Percentages

true 31 38.75

partly 36 45

not true 9 11.25

very true 4 5

` The above inference implies that people are satisfied with the PA system in Jocil

Ltd believe that it provides scope for developing their potential. This may be due to the fact that the self-appraised of the appraise invites suggestions on job enrichment, training needs and steps to be taken to improve individuals effectiveness. Whereas the above inference showing that potential level of increment is 45% partly so company has to improve in the sense of giving complete backup to the employee.

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9. 9.Do you have self-appraisal system?

Parameters Responses Percentages

yes 44 55

no 36 45

The presence of self-appraisal procedure in the PA appraisal system is an important reason for the above inference. The self-appraisal includes questions on major achievements, constraints in performance, type of training required, tasks or activities undertaken successfully during the year, problems faced etc. It also includes suggestions on making the job interesting and challenging and plans to improve effectiveness. Due to this fact, most of the employees may have felt that

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they were participating actively in their own appraisal by self -review and reflection on various issues.

10. Does employee get the regular feedback?

Parameters Responses Percentages

Yes 35 43.75

no 45 56.25

The above inference shows that the PA system Company does not giving the feedback about performance to its employees. It helps anticipating work needs in order to arrange work in logical order. It also helps in devising efficient methods to attain pre-determined plans. Again due to flexibility in job content, some people may have found problems in planning their performance systematically.

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11. How much you have satisfied with the system? .

Parameters Responses Percentages a.10-30% 14 17.5 b.40%-60% 28 35 c.60%-80% 30 37.5 d.100% 8 10

The employees do not want a fixed increment for their great performance. The company should make recommendations related to salary on the basis of regular performance feedback about every employee since the frequency of performance measurement varies from department to department; it is difficult to carry out this work smoothly so the satisfaction level low.

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12. Do you feel the fallowing are necessary for employee appraisal?
Yes Discipline Attendance Job knowledge Relation with employee Plan of work Decision making Guidance Performance Absenteeism Integration Dependency Participation 80 79 78 80 78 75 74 80 57 74 75 80 % 100 98.75 97.5 100 97.5 93.75 92.5 100 71.25 92.5 93.75 100 No 0 1 2 0 2 5 6 0 23 6 5 0 % 0 1.25 2.5 0 2.5 6.25 7.5 0 28.75 7.5 6.25 0

A performance appraisal system, which is perceived as bias -free by its executives, is an achievement for the organization. In the PA system the reporting officer appraises a section of people whereas the reviewing officer appraises the performance of an entire department. Also the reviewing officer is the immediate
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superior of reporting officer. Any disagreement between the assessments of an employee has to be duly discussed and recorded. Also, any noticeable difference of opinion between self-appraisal and appraisal by reporting officer has to be accounted for. All the above factors help in correcting the biases, if any of reporting officer.

13. Are you facing any fallowing problem during appraisal?

yes Analysis of skill Usage of logics Self-opinion description Participation in decision making Unable to reveal self description 17 8 12 6 15

% 21.25 10 15 7.5 18.75

No 63 72 68 74 65 78.75 90 85 92.5 81.25

Jocil Ltd. Performing the appraisal in a sequential manner like appraisal by the supervisor, immediate superiors which makes the proper meaning like ordering in the top to bottom which is a correct in the sense of analyzing the employee by the their superios.

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14. Do you think performance appraisal system gives the real justice?

Parameters Responses Percentages

yes 18 22.5

partly 50 62.5

no 12 15

Performance appraisal will give the employee ability to the organization and compensation in the form of increments and promotions. If the implementation reaches the in the parallel level this system will gives the real justices for every employee. From the inference 65% of the people are satisfied with their appraisal.

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15. Have been selected for any training after PA system conducted?

Parameters Responses Percentages

yes 29 36.25

no 51 63.75

Performance appraisal is major asset for employee estimation it gives the employee status whether he require the training or not and the require areas for training. So performance appraisal will choose the employee for training.

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16. Does training will effects your performance?

Parameters Responses Percentages

yes 52 65

no 28 35

For every employee training is required to take the right job at the right place at the same time when the new work is entered in the organization training is needed for analyzing the new operations. So the company needs training to increase the efficiency and to polish the work where they are in.

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17. Does Performance appraisal give the improvement in promotions and salaries?
Parameters Responses Percentages

Yes 28 35

Partly 43 53.75

No 9 11.25

The performance appraisal is completely need based the organization recognizes and promotes high achievers only if there are vacancies available in the organization by finding their strengths and weaknesses. This has a negative impact on people who are not rewarded and promoted duly for their good performance. There should be a system of rewarding employees either in monetary terms or in terms of recognition.

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18. Does your company conduct the counseling after the appraisal?
Parameters Responses Percentages

yes 18 22.5

partly 36 45

no 26 32.5

For growth of the company employee counseling is more important to reach the organization goals, Jocil Ltd. is providing the counseling on safety measurements and welfare activities only.

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19. What kind of an appraisal system will bring out the best of you?
Parameters Responses Percentages Appraisal by all superiors 8 10 Appraisal by immediate superior 50 62.5 Appraisal by reference team 10 12.5 Appraisal by team and self 12 15 reference

This shows that the relationship between appraiser and appraise, in Jocil Ltd, with respect to planning the performance is quite good. The subordinate in planning his performance. The appraiser helps appraise in testing the soundness of his goals as well as of his plans for achieving them. This implies that there is active participation of both appraiser and appraise in performance planning. The reason behind Not True answer may be due to the fact that many jobs in Jocil are not well defined and therefore an elaborate planning on them is not done.

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CAHPTER-5 FINDINGS
1) Presence of a firmly implemented career plan- good sense of growth. 2) High proportion of routine work- during training and immediately after. 3) Organization climate Well analyzed goals are set. Good and effective performance appraisal strategies applied. All the strategies are fair and objective. The employees are well aware of what is expected of them. Proper feedback is not given by management. Supervisors are patient with the employees problems. Good performance leads to annual increments and promotions. Training and development programs are to be improved. The purpose of Performance Appraisal System followed in the company is fulfilled.

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SUGGESTIONS

Performance appraisal technique is meant for assessing the employee strengths and weakness, to provide compensation to the employee. So that company should concentrate more on individual development and reward for employee work should be there. If implementation and analysis on the paper implements in more physical activity the satisfaction level of the employee will increase as well as path to reach the organization goal also easy.

CONCLUSIONS The JOCIL Ltd adopted the rating scale performance appraisal mechanism which most suitable for the manufacturing unit, since it is an agro based manufacturing company. The employee satisfaction average compare to the executive level employees. The certainty in the technique is being maintained from the last 10 years in the company. Organization is widely using the appraisal method for the beneficiary of the employee in the sense of promotions and increment in salary. The finding can be found from the analysis of data collected in JOCIL Ltd.

1. The knowledge on performance appraisal to the employee is good and some of them are having just knowledge on the technique. 2. Most of the employees are known that who will conduct the appraisal and when it will conduct but reaching the knowledge of appraisal system to every employee is required. 3. Majority of the employee satisfaction is 47.5% average on the technique used within the organization.
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4.

Employees are feeling the performance appraisal technique will gives the good result if the utilization is implements perfectly.

5. The chance for improving the self-appraisal should be more because 45% of the employee feeling there is no chance for self-appraisal, it will increase potential to the organization.
6. Proper feedback should be given to the management cadre staff at fixed time periods, so that the employee increase the performance based on their remarks. 7. Training and counseling classes are less in according to the data; it should be improved for the befit of the organization goals and Effective training and development programs should be held.

8. Exemplary rewards should be given for unique achievements of the employees.

9. Employees are facing some problem with decision making in the work culture and in the Free hand in decision making. 10. Performance appraisal system should be extensively used in job rotation AND up gradation of basic qualification of all workers to be taken in future based on their performance. 11. Uniform growth is required in the salaries and promotions, because it will gives the employee satisfaction in high level which is for the achievement of the organization.

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Questionnaire
Employee details: Name Sex Job details : : : Age Experience : :

1. Are you aware that your organization fallowing the performance appraisal system? a) yes b) partly c) no d) well known 2. Why performance appraisal system required? Yes a) b) c) d) e) To give the promotions To increase the salaries To evaluate the employee ability To give the training where it needed For job rotations b) d) ( ( ( ( ( ) ) ) ) ) No ( ( ( ( ( ) ) ) ) )

3. Who will appraise you? a) supervisor c) HR department

immediate superior others

4. On what basis does performance appraisal will conduct? a) based on work b) relationship with superiors c) presence and productivity d) others 5. What kind of performance appraisal will conduct? a) raking scale b) check list method c) confidential report d) performance test e) critical incident f) easy method 6. How often performance appraisal does conducts? a) once in a year b) once in 6 months
c) every week d) once in 3 months 51

7. What do you feel about this system? a) good b) c) bad d)

average above average

8. Does performance appraisal give the potential to your work? a) c) true not true b) partly

9. Do you have self appraisal system? a) Yes b) 10. Does employee get the regular feed back? a) Yes b)

no no

11. How much you have satisfied with your company PA system? a) 10-30% b) 40-60% c) 60-80% d) 100% 12. Do you feel the fallowing are necessary for employee appraisal? Yes No a) Discipline ( ) ( ) b) Attendance c) Job knowledge d) Relation with employee e) Plan of work f) Decision making g) Guidance h) Performance i) Absenteeism j) Dependency k) Integration l) Participation ( ( ( ( ( ( ( ( ( ( ( ) ) ) ) ) ) ) ) ) ) ) ( ( ( ( ( ( ( ( ( ( ( ) ) ) ) ) ) ) ) ) ) )

13. Are you facing any fallowing problem during appraisal?

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Yes a) b) c) d) e) Analysis of skill Usage of logics Self-opinion description Participation in decision making Unable to reveal self description ( ( ( ( ( ) ) ) ) ) ( ( ( ( (

No ) ) ) ) )

14. Do you think performance appraisal system gives the real justice? a) c) yes no b) partly

15. Have been selected for any training after the appraisal conducted? a) yes b) no

16. Does training will effects your performance? a) yes b) no

17. Does Performance appraisal give the improvement in promotions and salaries? a) true b) partly c) not true d) very true 18. Does your company conduct the counseling after the appraisal? a) yes b) partly c) no 19. What kind of an appraisal system will bring out the best of you? a) appraisal by all superiors b) appraisal by immediate superior
c) appraisal by reference team c) appraisal by reference team and self

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BIBLIOGRAPHY
T V Rao, 1999, Appraisal & Development ,Managerial Performance , T V Rao Learning systems Pvt. Ltd, Excel Books Carey and Janice Keefe, 2003, Performance appraisal Phrase Book , Adams Media Carl G.Thor ,2004, Designing Feedback , Viava Management Library. Angelo S.DeNisi, 1996, A Cognitive approach to performance appraisal, published in the Taylor & Francis e-Library. Jan Jonker & Bartjan Pennink, 2010, The Essence of Research Methodology, SpringerVerlag Berlin Heidelberg . P. Subba Rao, 2006, Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing House.

Web Resources:
www.google.com www.gigapedia.com
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www.performance-appraisal.com www.appraisals.naukrihub.com

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