INTRODUCTION

PERFORMANCE APPRAISAL
Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. Performance appraisal

are a systematic way of evaluating the standard of an employee's performance.Steps for developing a systematic performance appraisal: Identify key performance criteria

Development of key performance criteria should be based on a comprehensive job description and undertaken in consultation with employees. Develop appraisal measures

In order to obtain accurate and valid performance appraisals,appraisl measures should be tailored to the specific job or "job family"(i.e. groups of similar jobs).An evaluation of factors in the work enviornment which help or hinder performance is also recommended.This ensures that realistic expectations are set for employee's performance,and is also likely to increase the perceived fairness and acceptability of performance appraisals. Collect performance inforrmation from different sources

Traditionally,it has been the sole of responsibility of managers/supervisors to assess performance. However, other organizational members(e.g.,clients,coworkers,subordinates) can be a valuable source of information as they are likely to have exposure to different aspects of an employee's performance.Collecting information from multiple sources can increase the accuracy of performance evaluation and increase employee's perceptions of fairness.

Evaluate the appraisal process

The performance appraisal process should undergo regular review and improvement. For example, focus groups or surveys could be conducted to gauge employee's perceptions of the appraisal process. A successful performance appraisal process should demonstrate a change in both the ratings of employee's performance and aspects of the work enviornment that impact upon work performance. Performance appraisal is generally done in systematic ways which are as follows: 1. The supervisors measure the pay of employees and compare it with targets and plans. 2. The supervisor analyses the factors behind work performances of employees. The employers are in position to guide the employees for a better performance.

Objectives of Performance Appraisal

Performance Appraisal can be done with following objectives in mind: 1. To maintain records in order to determine compensation packages, wage structure, salaries raises, etc. 2. To identify the strengths and weaknesses of employees to place right men on right job. 3. To maintain and assess the potential present in a person for further growth and development. 4. To provide a feedback to employees regarding their performance and related status. 5. To provide a feedback to employees regarding their performance and related status. 6. It serves as a basis for influencing working habits of the employees. 7. To review and retain the promotional and other training programmes.

Advantages of Performance Appraisal

It is said that performance appraisal is an investment for the company which can be justified by following advantages:

Promotion: Performance Appraisal helps the supervisors to chalk out the

promotion programmes for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case.

Compensation: Performance Appraisal helps in chalking out compensation

packages for employees. Merit rating is possible through performance appraisal. Performance Appraisal tries to give worth to a performance. Compensation packages which includes bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. The criteria should be merit rather than seniority.

Employees Development: The systematic procedure of performance appraisal

helps the supervisors to frame training policies and programmes. It helps to analyse strengths and weaknesses of employees so that new jobs can be designed for efficient employees. It also helps in framing future development programmes.

Selection Validation: Performance Appraisal helps the supervisors to understand the validity and importance of the selection procedure. The supervisors come to know the validity and thereby the strengths and weaknesses of selection procedure. Future changes in selection methods can be made in this regard. Communication: For an organization, effective communication between
employees and employers is very important. Through performance appraisal, communication can be sought for in the following ways: a. Through performance appraisal, the employers can understand and accept skills of subordinates. b. The subordinates can also understand and create a trust and confidence in superiors. c. It also helps in maintaining cordial and congenial labour management relationship. d. It develops the spirit of work and boosts the morale of employees.

All the above factors ensure effective communication.

Motivation: Performance appraisal serves as a motivation tool. Through evaluating

performance of employees, a persons efficiency can be determined if the targets are achieved. This very well motivates a person for better job and helps him to improve his performance in the fut Improving Communication All too often, employees and managers don't get along and can't understand why. Problems that stem from a lack of communication can sometimes be resolved with a performance appraisal. If the appraisal is used as an opportunity to describe the criteria on which performance is judged -- using meaningful and relevant examples -- then the employee will walk away from the meeting with a better understanding of how to best perform his job. For example, "John, when I say you need to be more customer-focused, what I really want is to see you greet the customers with a smile when they enter the store, and ask how you can help."

Providing a Career Path

The performance appraisal is the perfect opportunity to address long-term goals that may not be on the everyday to-do list. Not only does this provide the employee with an opportunity to be of greater use to an organization, the employee feels pleased and valued. Lighting the way toward a successful career path inspires loyalty and stability and can improve the bottom line, especially when the employee's first concern is the health of the business, and subsequently, her career.

Encouraging Good Work and Improvement

Celebrating a job well-done is the easy part of the performance appraisal. Noting areas of improvement is not so easy. Nevertheless, no one is perfect, and the performance appraisal is an ideal time to diplomatically highlight areas that need improvement. Even the most valuable employee could benefit from additional training, while those who are on the cusp of dismissal need the heads-up. Be specific by providing examples and clearly explain what needs to occur to turn things around. Showing an employee that you care enough about them by taking the time to work with them may make even the most hardened employee feel better.

Improving Decision-Making Ability

When a company has detailed information on employee performance, business decisions become easier. Filling open positions with existing staff strengthens the organization and promotes loyalty. Knowing which employees display what strengths improves the speed with which projects can be assigned. Appraisals also provide a framework when making decisions about compensation -- and layoffs. If the organization becomes the unfortunate party to a lawsuit, the performance appraisal can refute or support claims. As a result, the effective use of performance appraisals helps an organization operate efficiently and with focus.

Disadvantages of Performance appraisal

Performance-appraisal systems can become a key component of a small business's performance-management program. These systems consist of appraisal forms and instructions for supervisors to use in their annual evaluations of their employees' work. Although performance-appraisal systems offer several benefits, there can be disadvantages to the systems and the manner in which they're used.

Leadership Training
Before a business launches its performance-appraisal system or when it hires a new supervisor or manager, the company provides leadership training on how to effectively evaluate job performance. Leadership training consists of how to write a performanceappraisal document as well as how to conduct a performance appraisal meeting. However, one of the disadvantages of performance-appraisal systems is that the employer-provided training is woefully inadequate for preparing supervisors to provide unbiased feedback to employees in a manner that motivates workers to strive for higher performance ratings. Companies might train supervisors on the mechanics of a performance appraisal system and disregard the importance of using performance feedback to inspire team members.

Negative Approach
Supervisors and employees might come to dread performance-appraisal season. Supervisors who work for small businesses might feel the time it takes to prepare an employee's performance appraisal could be better spent on other job tasks. Small businesses often have to make do with limited staff or a smaller workforce. This puts supervisors in a bind when they have to devote too much time to preparing for an employee appraisal. Employees might fear receiving an appraisal that contains mostly neutral or negative feedback about their job performance -- not overwhelmingly complimentary feedback or positive strokes. Being on the receiving end of negative feedback is as nerve-wracking as being the supervisor who has to give negative feedback, which makes for an uncomfortable appraisal meeting. Also, in a small business, post-appraisal interaction between a supervisor and employee can be tense, particularly if the employee believes she was rated unfairly. The tense interaction between supervisors and employees is likely to be heightened because of the close proximity within which employees and supervisors often work in a small business setting. For many employees, news about a salary increase is about the only positive aspect of a performance

appraisal. The dread with which supervisors and employees view performance appraisals puts a negative spin on the entire process.

Supervisor Bias
Intentional or unintentional biases can destroy the integrity of the performance-appraisal system. Biases occur when supervisors overlook poor employee performance during the early part of an evaluation period and focus solely on the most recent performance. Supervisor bias can occur when supervisors feel it's too much work to produce a quality performance appraisal, resulting in a less than properly constructed appraisal, according to Tulane University business school professor Jasmijn Bol. In addition, supervisors who were promoted from staff positions might have a difficult time rating the job performance of employees who were once their peers. This is a serious disadvantage of performanceappraisal systems that can have a lasting effect on an employee's status with the company, even to the point of termination if the supervisor bias is pervasive enough to render performance ratings that are abysmally low.

Timeliness
Performance appraisals don't always receive the priority they deserve. Employees must receive timely feedback to learn whether they're performing their job functions according to expectations. Absent informal or formal feedback provided by a performance-appraisal system, employees might not realize how they can improve their processes or their behaviors and attitudes about work. A supervisor's failure to conduct timely performance appraisals demonstrates poor leadership skills and can put a strain on the supervisor-employee relationship. This is particularly true when an employee's salary raise depends on finalizing the performance appraisal. Late appraisals mean untimely wage increases.

METHODS OF PERFORMANCE APPRAISAL

There are many types of performance appraisal methods. Some of them are :

1) job results/outcome 2) essay method 3) Ranking 4) Forced Distribution 5) Graphic Rating Scale 6) Behavioural Checklist 7) Behavioural Anchored Rating Scales (BARS) 8) Management by Objectives (MBO)

Job Results
Though not an appraisal method per se, job results are in themselves a source of data that can be used to appraise performance. Typically, an employee's results are compared against some objective standard of performance. This standard can be absolute or relative to the performance of others. Results indexes are often used for appraisal purposes if an employee's job has measurable results. Examples of job results indexes are dollar volume of sales, amount of scrap, and quantity and quality of work produced. When such quantitative results are not available, evaluators tend to use appraisal forms based on employee behaviors and/or personal characteristics. In some cases, appraisals may focus on results rather than behaviors. This is especially true where job content is highly variable, as in many managerial positions, thus making it difficult to specify appropriate behaviors for evaluative purposes. Results indexes such as turnover, absenteeism, grievances, profitability, and production rates can be used to evaluate the performance of organization units.

Essay Method
The essay method involves an evaluator's written report appraising an employee's performance, usually in terms of job behaviours and/or results. The subject of an essay appraisal is often justification of pay, promotion, or termination decisions, but essays can be used for developmental purposes as well. Since essay appraisals are to a large extent unstructured and open-ended, lack of standardization is a major problem. The open-ended, unstructured nature of the essay appraisal makes it highly susceptible to evaluator bias, which may in some cases be discriminatory. By not having to report on all job-related behaviours or results, an evaluator may simply comment on those that reflect favourably or unfavourably on an employee. This does not usually represent a true picture of the employee or the job, and content validity of the method suffers.

Ranking
Ranking methods compare one employee to another, resulting in an ordering of employees in relation to one another. Rankings often result in overall assessments of employees, rather than in specific judgments about a number of job components. Straight ranking requires an evaluator to order a group of employees from best to worst overall or from most effective to least effective in terms of a certain criterion. Alternative ranking makes the same demand, but the ranking process must be done in a specified manner (for example, by first selecting the best employee in a group, then the worst, then the second-best, then the second-worst, etc.). Comparative evaluation systems such as ranking are rarely popular. No matter how close a group of employees is in the level of their performance, and no matter how well they perform on the job, some will rank high and some will end up at the bottom. Evaluators are often reluctant to make such discriminations. Also, rankings are unable to compare employees across different groups. For example, it is difficult to say whether the second-ranked employee in unit A is as good as or better than the second-ranked employee in unit B. Despite the problems of ranking methods, if an organization has a very limited number of promotions or dollars to allocate, rankings can be very useful in differentiating among employees.

Forced Distribution
Forced distribution is a form of comparative evaluation in which an evaluator rates subordinates according to a specified distribution. Unlike ranking methods, forced distribution is frequently applied to several rather than only one component of job performance. Use of the forced distribution method is demonstrated by a manager who is told that he or she must rate subordinates according to the following distribution: 10 percent low; 20 percent below average; 40 percent average; 20 percent above average; and 10 percent high. In a group of 20 employees, two would have to be placed in the low category, four in the belowaverage category, eight in the average, four above average, and two would be placed in the highest category. The proportions of forced distribution can vary. For example, a supervisor could be required to place employees into top, middle, and bottom thirds of a distribution. Forced distribution is primarily used to eliminate rating errors such as leniency and central tendency, but the method itself can cause rating errors because it forces discriminations between employees even where job performance is quite similar. For example, even if all employees in a unit are doing a good job, the forced distribution approach dictates that a certain number be placed at the bottom of a graded continuum. For this reason, raters and ratees do not readily accept this method, especially in small groups or when group members are all of high ability.

Graphic Rating
Graphic rating scales are one of the most common methods of performance appraisal. Graphic rating scales require an evaluator to indicate on a scale the degree to which an employee demonstrates a particular trait, behavior, or performance result. Rating forms are composed of a number of scales, each relating to a certain job or performance-related dimension, such as job knowledge, responsibility, or quality of work. Each scale is a continuum of scale points, or anchors, which range from high to low, from good to poor, from most to least effective, and so forth. Scales typically have from five to seven points, though they can have more or less. Graphic rating scales may or may not define their scale points. Acceptable rating scales should have the following characteristics: 1. Performance dimensions should be clearly defined. 2. Scales should be behaviourally based so that a rater is able to support all ratings with objective, observable evidence. 3. Abstract trait names such as "loyalty," "honesty," and "integrity" should be avoided unless they can be defined in terms of observable behaviors. 4. Points, or anchors, on each scaled dimension should be brief, unambiguous, and relevant to the dimension being rated. For example, in rating a person's flow of words, it is preferable to use anchors such as "fluent," "easy," "unimpeded," "hesitant," and "labored," rather than "excellent," "very good," "average," "below average," and "poor." Carefully constructed graphic rating scales have a number of advantages: 1. Standardization of content permitting comparison of employees. 2. Ease of development use and relatively low development and usage cost. 3. Reasonably high rater and ratee acceptance. A disadvantage of such rating scales is that they are susceptible to rating errors which result in inaccurate appraisals. Possible rating errors include halo effect, central tendency, severity, and leniency. The halo effect occurs when a rating on one dimension of an appraisal instrument substantially influences the ratings on other dimensions for the same employee. As a result of the halo effect, an employee is rated about the same across all performance dimensions. Central tendency is a lack of variation or difference among ratings of different subordinates, wherein most employees tend to be rated as average. Leniency refers to an evaluator's tendency to rate most employees very highly across performance dimensions, whereas severity refers to the tendency to rate most employees quite harshly.

Mixed Standard Scales

Mixed standard scales are a relatively recent innovation in rating scales. They contain statements representing good, average, and poor performance based on behavioral examples obtained from knowledgeable persons, usually supervisors. An evaluator's task is to indicate whether an employee either fits the statement, is better than the statement, or worse than the statement. In a mixed standard scale, each performance dimension has three statements relating to it: one illustrating good performance, one average, and one poor. Thus, this mixed standard scale has nine statements, three for each of the three dimensions used. Statements in mixed standard scales are randomly mixed, tending to reduce rater errors by making it less obvious which statements reflect effective or ineffective performance. Example of a mixed standard scale Instructions: If the employee fits the statement, put a ?=? in the space opposite the statement. If the employee is better than the statement, put a ?v?. If the employee is worse than the statement, put ?x?. 1. Is on good terms with everyone. Can get along with people even in disagreement. 2. Employee's work is spotty, sometimes being all right and sometimes not. Could be more accurate and careful. 3. Has a tendency to get into unnecessary conflicts with people. 4. Is quick and efficient, able to keep work on schedule. Really gets going on a new task. 5. The accuracy of employee's work is satisfactory. It is not often that you find clear evidence of carelessness. 6. Gets along with most people. Only very occasionally has conflicts with others on the job, and these are likely to be minor. 7. Is efficient enough, usually getting through assignments and work in reasonable time. 8. Work is striking in its accuracy. Never any evidence of carelessness in it. 9. There is some lack of efficiency on employee's part. Employee may take too much time to complete assignments, and sometimes does not really finish them.

Behavioural Checklist
A behavioural checklist is a rating form containing statements describing both effective and ineffective job behaviours. These behaviours relate to a number of behavioural dimensions determined to be relevant to the job. Items from a behavioural checklist for a salesperson's job Instructions: Please check those statements descriptive of an employee's behaviour. 1. Calls on customers immediately after hearing of any complaints 2. Discusses complaints with customer 3. Gathers facts relevant to customers' complaints 4. Transmits information about complaints back to customers and resolves problems to their satisfaction 5. Plans each day's activities ahead of time 6. Lays out broad sales plans for one month ahead 7. Gathers sales information from customers, other salesmen, trade journals, and other relevant sources Behavioural checklists are well suited to employee development because they focus on behaviours and results, and use absolute rather comparative standards. An advantage of behavioural checklists is that evaluators are asked to describe rather than evaluate a subordinate's behaviour. For this reason, behavioural checklists may meet with less evaluator resistance than some other methods. An obvious disadvantage of behavioural checklists is that much time and money must be invested to construct the instrument.

BARS - Behaviourally Anchored Rating Scales

Behaviourally anchored rating scales (BARS) are rating scales whose scale points are defined by statements of effective and ineffective behaviours. They are said to be behaviourally anchored in that the scales represent a continuum of descriptive statements of behaviours ranging from least to most effective. An evaluator must indicate which behaviour on each scale best describes an employee's performance. BARS differ from other rating scales in that scale points are specifically defined behaviours. Also, BARS are constructed by the evaluators who will use them. There are four steps in the BARS construction process: 1. Listing of all the important dimensions of performance for a job or jobs 2. Collection of critical incidents of effective and ineffective behaviour 3. Classification of effective and ineffective behaviours to appropriate performance dimensions 4. Assignment of numerical values to each behaviour within each dimension (i.e., scaling of behavioural anchors)

Sample of BARS INTERPERSONAL SKILL DESCRIPTION: Develops and maintains a friendly rapport with others; demonstrates a sensitivity to their feelings; respects the dignity of others and responds with empathy to their own sense of self-worth. Ratings 1 and 2: Demonstrates the ability to get along well with subordinates, managers, and peers; strives to achieve work group objectives. Can express own ideas, thoughts, and feelings and considers the needs, ideas, and feelings of others. Ratings 3 and 4: Demonstrates the ability to apply factors of effective listening, on a one-toone basis, such as displaying interest, not interrupting when another is speaking, and withholding judgments. Consistently provides honest (both positive and negative) feedback and provides constructive criticism when appropriate. Ratings 5 and 6: Demonstrates the ability to consistently consider and respond to the needs and ideas of others which encourages and stimulates further communication. Effectively listens in group or one-to-one situations involving distractions, stress, complex information, or when the person speaking is emotional/distraught. Creates/maintains a positive working environment that encourages expression of thoughts, ideas, and feelings.

Management by Objectives
Management by objectives (MBO) involves setting specific measurable goals with each employee and then periodically discussing his/her progress toward these goals. The term MBO almost always refers to a comprehensive organization-wide goal setting and appraisal program that consist of six main steps: 1. Set the organization? goals. Establish organization-wide plan for next year and set goals. 2. Set departmental goals. Here department heads and their superiors jointly set goals for their departments 3. Discuss and allocate department goals. Department heads discuss the department's goals with all subordinates in the department (often at a department-wide meeting) and ask them to develop their own individual goals; in other words, how can each employee contribute to the department's attaining its goals? 4. Define expected results (set individual goals). Here, department heads and their subordinates set short-term performance targets. 5. Performance review and measure the results. Department heads compare actual performance for each employee with expected results.

6. Provide feedback. Department heads hold periodic performance review meetings with subordinates to discuss and evaluate progress in achieving expected results.

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 performance 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.

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 of 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 one-toone basis. The focus of this discussion is on communication 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 like rewards, promotions, demotions, transfers etc.

Company profile

Oswal Woollen Mills Limited (OWM), is the parent company of the Nahar Group of Companies (the Nahar Group). OWM was incorporated in 1949 by Late Mr. Vidya Sagar Oswal, father of Mr. Jawahar Lal Oswal, the present Chairman and Managing Director. The Board comprises of ten directors including three promoters directors namely Sh. Jawahar Lal Oswal, Sh. Kamal Oswal, Sh. Dinesh Oswal, the renowned industrialists.

and seven other directors who are technocrats, professionals, legal, commercial and financial wizards. The Board is further assisted by a team of professionals who have rich experience in their respective fields. OWM is one of the pioneers of the organized Indian woollen hosiery industry. We believe in the philosophy 'Success is Tradition and Growth is imperative'. It made a modest beginning as a manufacturer of hosiery items, which was followed by setting up a worsted Woollen spinning plant of 800 spindles in 1954 to serve as a backward integration of the then existing manufacturing activities. It was one of the first worsted Woollen spinning plant in the Northern India.

Marching ahead in the journey and keeping pace with overall industrial development in India, the Company is now one of the biggest producers of worsted Woollen yarns in the country. In our Woollen hosiery segment, we start our operations with import of raw greasy wool mostly from Australia and our products include various types of specialty yarns, such as, worsted Woollen yarn, lamb wool yarn, acrylic yarn, various types of wool based blended yarn, fancy yarn, hand knitting yarn etc under the popular brand name 'OWM'. In March 2006 the company added manufacturing of indigo dyed specialty denim fabric to its existing vast range of product portfolios. In June 2007, a cotton spinning unit was set up as a backwards integration of Denim plant. The manufacturing facilities of the company are spread across various locations in and around Ludhiana in Punjab fully backed by the facilities for product development and efficient testing infrastructure to provide quality products to our customers. Our products particularly the yarns have been exhibited as the best products by the International Wool Secretariat (IWS) (an international body for regulating the spinning and hosiery industry).

As a step towards clean environment and use of renewable energy sources the company has now entered into the field of solar and wind power generation and will be setting up a total capacity of approx 11.50 MW in the year 2010-11, with plans to enhance the same in the near future.

Quality Control and Policy

We have established a quality management system (QMS) and have implemented the same throughout our Company. A management review committee under the chairmanship of Mr. Sandeep Jain, our Executive Director has been constituted for conducting the review of our Company's quality management system, quality policy and objectives at least once in six months for ensuring its continuing suitability, adequacy and effeteness. We are committed to provide total customer satisfaction by meeting all requirements and continual improvement of quality management standards performance. The following are the objectives of our quality management system :o o o

To enhance customer satisfaction Regular review and Up gradation of technology Cost reduction in operations

Present Capacities

Worsted Spinning

36416 Spindles

Woollen/mohair tops

2.50 million lbs per annum

Cotton spinning

21348 spindles

Denim Cloth

26 Million Mtrs Per Annum

Nahar Spinning Mills Limited Started out as a tiny worsted Spinning & Hosiery unit in Ludhiana. It was incorporated as a Private Limited company in December, 1980 and became a Public Limited Company in 1983. The steady growth in manufacture and Export of woollen/cotton hosiery knitwears and woollen textiles enabled the company to earn the recognition as an "Export House" followed by a "Recognized Trading House" by the Government of India in a short span. Its turbo-charged performance brought them a host of fresh laurels.. They include the "National Export Trophy" by the Apparel Export Promotion Council. The latest is the Gold Trophy for highest Exports of Yarn 50s & below in Yarn Category by TEXPROCIL for the year 2010-2011 and 'AEPC Export Awards for Highest Exports in Cotton Garment in the year 2008-09 and 2009-10. In 1992, as a measure of backward integration, the company diversified into the Spinning Industry by putting up a Spinning Plant at Village Simrai, Mandideep, Distt. Bhopal. To produce high quality value added Yarn for exports, company also put up Spinning Units at Village Jalalpur, Distt. S.A.S. Nagar, Village Jodhan, Distt. Ludhiana and Village Jitwal Kalan, Distt. Sangrur, Punjab. The present spindlage capacity of the company is 4.42 lacs spindles and 1080 Rotors.

Our work place and machinery:

ACHIEVEMENT OF NAHAR

The group has also achieved excellence in exports which has also been recognized by the export council as well as the govt. of India by bestowing several export rewards and trophies such as:- First gold trophy in global exports in 1989. First silver trophy in hosiery exports in 1990. Export award consecutively for five year (1989 to 1994) for exports of woolen hosiery garments. International award for excellence performance in exports in 1993. NAHAR EXPORTS LIMITED, is the recipient of best exporter for the year 2002-03 Also NIEL.GARMENT UNIT is the recipient of state level safety award. Get energy conservation award in 2008. ISO(IMS)-social accountability (8000-2001

FUTURE MARKETING OBJECTIVE OF GARMENT UNIT:

To enter into women wear and kids wear To enter into formal wear To explore new market in the south, east and west India and strengthen their grip over there.

Classification of workmen:
A) B) C) PERMANENT PROBATIONER APPRENTICE/TRAINEE

Attendance Cards:
Attendance is marked through punching cards indicating the arrival as well as departure time of every employee. The name of every employee is entered in the attendance register clearly indicating the classification to which he belongs. Daily as well as monthly records are maintained.

Entry And Exit:

During working hours every workmen in the factory enters and goes out of the factory after getting the gate pass

Selmen Jim(May 2001) in his journal"Employee Performance Appraisal is painful and it doesnot work"has propsed,why is this established process so painful for all participants? The manager is uncomfortable in the judgement seat.He knows,he may have to justify his openions with specific examples when the staff member asks.He lacks skill in providing feedback and often provokes a defensive response from the employe who may justifiably feel he is under attack.Consiquently,managers avoid giving honest feedback which defeats the purpose of the performance appraisal from time to time, organization find it useful to summarize employe performace.This requires the fourth process of performance management,rating,this enables comparison among a set of employes or individual conduct productivity over a period of appraisal.The rating of record has a bearing on various other personnel actions,such as granting within grade pay increases and promoting or determining additional retention service credit in a reduction in force .In a productive organization, rewards are used frequently and profitably.Rewarding, the fifth process of performance management comprises this , it means acknowledging employees contributions to the agency's mission as an individual or a team player through granting of awards,benefits ,merits or bonuses. A basic principle of effective management is that all conduct is influenced by its consequences.This applies whether the deed is positive or negative.In turn the staff member whose performance is under review often becomes defensive when ever his performance is rated as less than the best or less than the level at which he personally perceives his contribution,the manager is viewed as punitive.In a productive organization rewards are used frequently and profitably.

RESEARCH METHODOLOGY
Research methodology is a way to solve the research problem in a systematic manner.It may be understood as a science of studying how the research is done significantly . The methodology may differ from problem to problem yet the basic approach towards the research remains the same .

RESEARCH PROCESS
Following are the main steps of research process: Defining Problem:This is the basic step in the research process . It is well said that"A problem well defined is half solved".Here the problem is to analyse the attitudes of the employees regarding performance appraisal.

1.1 - Research Design

Once the problem is definied the next step is the research design is the basic framework which provided guidelines for the rest of the research process.

1.2- Sources of data collection

Both the primary and secondary will be the sources of data collection

Primary sources: As primary sources ,I collected a fresh data through questionnaire Secondary Sources :I also collected data from Internet and books.

1.3- Scope of the study:

A detail study was conducted in Denims LTD ,lalru.a first hand data collected form a group consisting of over50 respondents. Care was taken to include to categories of consumer and retailer. The scope of this study is lies on denims.

NEED OF THE STUDY

Performance appraisal is an important aspect in every organization to evaluate the employees performance .It helps the supervisor to evaluate the performance of his employees so to place the employees on the jobs for which they are best suited. It helps the management to decide the salary increase and special increments,to transfer and promotions to analyse training and

development needs etc .

1.4 - OBJECTIVES OF THE STUDY

This project aims at studying the system of performance appraisal and making comparative study of performance appraisal.Main objectives of this study are: To know employee attitude towards the present appraisal system. To know the extent of effectiveness of the appraisal system.

Sample size;
Our sample size was 50 respondents. From those I collect data.

Sampling technique :
We have selected the convenience sampling method for conducting survey. The sample size for the survey is 50.

Tools of data collection :

The data has been collected through questionnaire using Graphical techniques

Analysis of the data :

After organizing and presenting the data the researchers then have to proceed towards conclusion by logical inferences. The raw data is then analyzed: By bringing raw data to measured data. Summarizing the data.

1.5 - LIMITATIONS
Response of employees was not good as employees were hesitate to answer the questions as they thought it was a waste of time. Employees were not clear about the performance appraisal done by their organization so their responses were not accurate. The respondents responses to the questions might be biased due to fear towards the management . Since the information was collected from only a number of employees in the organization the study is basically qualitative in nature and not qualitative.

Q-1) Performance appraisal is needed in organization?

Options YES NO respondents 40 10 percentage(%) 90% 10%

YES

respondents percentage(%)

Interpretation:
From the above graph it could be concluded that 90% of respondents answer is yes and 10% of respondents answer is no

Q-2)The desired target is achieved through performance appraisal? Option Yes No Total No of respondents 40 10 50 Percentage (%) 80% 20% 100%

No of respondents

Yes No

Interpretation:
From the above graph it could be concluded that 80% of respondents answer is yes and 20% of respondents answer is no.

Q-3) Adequate performance appraisal plays a important role in our career? Option Yes No Total No respondents 30 20 50 Percentage (%) 60% 40% 100%

No of respondents
Yes No

26%

74%

Interpretation:
From the above graph it could be concluded that 60% of respondents answer is yes and 40% of respondents answer is no.

Q-4) Do you know your performance appraisal is done by your superior? Option Yes No Total No of respondents 45 5 50 Percentage(%) 90% 10% 100%

No of respondents
40 35 30 25 20 15 10 5 0 Yes No No of respondents

Interpretation:
From the above graph it could be concluded that 90% of respondents answer is yes and 10% of respondents answer is no.

Q-5) Is performance appraisal is a waste of time? Option Yes No Total No of respondents 6 44 50 Percentage(%) 12% 88% 100%

No of respondents

Yes No

Interpretation:
From the above graph it could be concluded that 12% of respondents answer is yes and 88% of respondents answer is no.

Q-6) Performance appraisal helps in improving the productivity? Option Yes No Total No of respondents 36 14 50 Percentage(%) 72% 28% 100%

No of respondents
No of respondents

No

13

Yes

37

Interpretation:
From the above graph it could be concluded that 72% of respondents answer is yes and 28% of respondents answer is no.

Q-7) Performance appraisal helps in polishing the skills of the employees? Option Yes No Total No of respondents 40 10 50 Percentage(%) 80% 20% 100%

Yes

No

Interpretation:
From the above graph it could be concluded that 80% of respondents answer is yes and 20% of respondents answer is no.

Q-8) Is performance appraisal motivates you? Option Yes No Total No of respondents 45 5 50 Percentage(%) 90% 10% 100%

No of respondents
Yes No

26% 74% 26%

Interpretation:
From the above graph it could be concluded that 90% of respondents answer is yes and 10% of respondents answer is no.

Q-9) Are you satisfied with performance appraisal system of your organization? Option Yes No Total No of respondents 37 13 50 Percentage(%) 74% 26% 100%

No of respondents

Yes No

Interpretation:
From the above graph it could be concluded that 74% of respondents answer is yes and 26% of respondents answer is no.

Q-10) The performance appraisal helps the management to decide the incentives to the employees? Option Yes No Total No of respondents 43 7 50 Percentage(%) 86% 14% 100%

No of respondents
No of respondents

No

Yes

43

Interpretation:
From the above graph it could be concluded that 86% of respondents answer is yes and 14% of respondents answer is no.

SUGGESTIONS & RECOMMENDATIONS

There's more than one way to improve the level of effectiveness of performance appraisal system in a company.In fact,a thereare many different thing's that companies not only can do, but need to do . After analyzing the data, it was observed that practically employees have no knowledge about performance appraisal system in their organization. To be an effective tool, it has to be on the continuous basis.It should be clear to all employees. Here is a round up of some of the best approaches that can be used by the organization to resolve the issues and problem highlighted by the survey. For better understanding and adaptability of the performance appraisal system the company should give more attention towards this. Transperarency into the system should be ensured through the discussion about the employees performance with the employee concerned and trying to find out areas so that training can be implemented to improve that. The main purpose of the appraisal is to make the employees to understand performance appraisal in its own way so the method of the performance appraisal can be easy and adaptable. After the performance appraisal process the employees counseling should be done on performance rating basis. The objectives of the performance appraisal system should be designed so that they match with the job requirements of the appraise. The rules and regulations should be clearly explained during the appraisal process to avoid any problem that may arise unknowingly. The time period for conducting the appraisal should be revised so that the exercise becomes a continuous phenomenon. The very concept of performance appraisal should be marketed throughout the organization unless this is done,people would not accept it ,be it how important to the organization. Feedback from the participants is very important and should be taken regularly. Employees should be clear about their performance .

CONCLUSION
I would like to conclude that human resourse departmant is the heart of every organization and performance appraisal system is its heartbeat because if the heart will not beat at right intervals and at right times then it will affect overall health of the individuals.If performance of each and every employee will not be appraised at right intervals it will affect the health of the organization. Different approaches to evaluation of performance appraisal process discussed here in indicate that the activities involved in appraisal of performance are complex and not always well structered . Since activities in performance appraisal process involve multiple goals associated with multiple levels,evaluation should perhaps be viewed as a collaborative activity between all appraisers . Not surprisingly;organizations are experiencing problems with respect to developing consistent performance appraisal approaches.Only a small percentage of organization succed in establishing a sound appraisal process that feedback into the appraisal design process.Appraisal activities are limited to reaction sheets and student testing without proper revision of performance materials based appraisal results.

BIBLIOGRAPHY: BOOKS
Mirza s, saiyadain, publishers,2nd edition. Prasad. L.M, human resource management, Sultan chand and sons,2nd Edition. Gupta C.B., human resource management 8th edition. Aswathappa. K, human resource management and personnel management, Tata McGraw Hill publishers,4th edition. Internet portals: www.researchscholar.com www.hr.com www.goole.com

QUESTIONNAIRE

Q-1) Performance appraisal is needed in organization? YES NO

Q-2)The desired target is achieved through performance appraisal? YES NO

Q-3) Adequate performance appraisal plays a important role in our career? YES NO

Q-4) Do you know your performance appraisal is done by your superior? YES NO

Q-5) Is performance appraisal is a waste of time? YES NO

Q-6) Performance appraisal helps in improving the productivity? YES NO

Q-7) Performance appraisal helps in polishing the skills of the employees? YES NO

Q-8) Is performance appraisal motivates you? YES NO

Q-9) Are you satisfied with performance appraisal system of your organigation? YES NO

Q-10) The performance appraisal helps the management to decide the incentives to the employees? YES NO