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CERTIFICATE

This is to certify that the project report entitled “A STUDY ON


“PERFORMANCE APPRAISAL SYSTEM”” with reference to DELTA
PAPER MILLS LIMITED VENDRA, Submitted by J.V.M. LAKSHMI Final
M.B.A, Regd No: 110287302060 in the partial fulfillment of the requirement for
the award of the degree of “MASTER OF BUSINESS ADMINISTRATION”
Andhra University, Visakhapatnam, During the academic year (2010-2012).

V.VANU M.B.A, M.Phil P.SRINIVAS M.B.A, M.Phil (Ph.D)

Project Guide Head of the Department

1
CONTENTS
CHAPTER-I Page no

 INTRODUCTION 1

 NEED FOR THE STUDY 3

 IMPORTANCE OF THE STUDY 4

 OBJECTIVES OF THE STUDY 5

 METHODOLOGY 6

 LIMITATIONS 8

CHAPTER-2

 INDUSTRIAL PROFILE 10

CHAPTER-3
 COMPANY PROFILE 20

CHAPTER-4

 CONCEPT OF PERFORMANCE APPRAISAL SYSTEM 32


CHAPTER-5
 DATA ANALYSIS & INTERPRETATION 55

CHAPTER-6

 FINDINGS & SUGGESTIONS 74

 CONCLUSION 76

 BIBLIOGRAPHY

 ANNEXURES

2
INTRODUCTION

Human Resources Management:

Human Resource Management (HRM) is the function within an organization that


focuses on recruitment of, management of, and providing direction for the people who work
in the organization. Human Resource Management can also be performed by line managers.

Human Resource Management is the organizational function that deals with


issues related to people such as compensation, hiring, performance management,
organization development, safety, wellness, benefits, employee motivation, communication,
administration, and training.

Human resource management (HRM) is the strategic and coherent approach to


the management of an organization's most valued assets - the people working there who
individually and collectively contribute to the achievement of the objectives of the business.
[1]
The terms "human resource management" and "human resources" (HR) have largely
replaced the term "personnel management" as a description of the processes involved in
managing people in organizations.[1] In simple words, HRM means employing people,
developing their capacities, utilizing, maintaining and compensating their services in tune
with the job and organizational requirement.

Human Resources Development:

Human Resource Development (HRD) is the framework for helping employees


develops their personal and organizational skills, knowledge, and abilities. Human Resource
Development includes such opportunities as employee training, employee career
development, performance management and development, coaching, mentoring, succession
planning, key employee identification, tuition assistance, and organization development.

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The focus of all aspects of Human Resource Development is on developing the
most superior workforce so that the organization and individual employees can accomplish
their work goals in service to customers.
Human Resource Development can be formal such as in classroom training, a
college course, or an organizational planned change effort. Or, Human Resource
Development can be informal as in employee coaching by a manager. Healthy organizations
believe in Human Resource Development and cover all of these bases.

Performance Appraisal System:

Performance appraisal refers to all the formal procedures used to evaluate an


individual, his contributions and potential. In other words, it is to plan and measure the
performance of an individual in terms of the requirement of the job or it is a process of
finding out how effective the organization has been at hiring and placing an employee.

Performance appraisal is a formal system of review and evaluation of individual or


team task performance. While evaluation of team performance is critical when teams exist in
an organization, the focus of performance appraisal in most firms remains on the individual
employees. Regardless of the emphasis, an effective appraisal evaluates accomplishments
and initiates plans for development, goals and objectives.

Company:

The Delta Paper Mills Limited was established as a public limited company on
23r may 1975. Late Sri BH.Vijay Kumar Raju and Andhra Pradesh Industrial development
corporation (APIDC) on 18th September 1975 promoted the Delta Paper Mills Limited; the
company started its commercial production on 7th April 1977.

In 1978 the initial production capacity was 30 tones per day. In 1986, Delta
paper mills Limited under took an expansion project to double its capacity to 60 tones per
day. Now the capacity of the plant is 115 tones per day.

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NEED FOR THE STUDY

Appraising the performance of individuals, groups and organizations is a common


practice of all societies. While in some instances these appraisal processes are structured and
formally sanctioned, in other instances they are an informal and integral part of daily
activities. Consciously of unconsciously evaluate our own actions from time to time. In
social interactions, performance is conducted a systematic and planned manner to achieve
widespread popularity in recent years.

Performance appraisal is essential to understand and improve the employee's


performance through HRD. In fact, performance appraisal is the basis fore HRD. It was
viewed performance appraisal was useful to decide upon employee promotion / transfer
salary determination and the like. But the recent developments in human resources
management indicate that performance appraisal is the basis for employee development.
Performance appraisal indicates the level of desired performance level, level of actual
performance and the gap between these two. This gap should be bridged through human
resources development techniques like training executive development etc.

According to the past survey it was noticed that the performance appraisal
system in this company was not up to the mark. Hence there would be scope for giving few
suggestions as per my knowledge to improve the performance appraisal system which was
quite essential for the better performance of the employees.

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IMPORTANCE OF THE STUDY

Performance appraisals provide employees and managers with opportunities to


discuss areas in which employees excel and those in which employees need improvement.
Performance appraisals should be conducted on a regular basis, and they need not be directly
attached to promotion opportunities.

Personal Attention

During a performance appraisal review, a supervisor and an employee discuss the


employee's strengths and weaknesses. This gives the employee individual face time with the
supervisor and a chance to address personal concerns.

Feedback

Employees need to know when their job duties are being fulfilled and when there are
issues with their work performance. Managers should schedule this communication on a
regular basis.

Career Path

Performance appraisals allow employees and supervisors to discuss goals that must be
met to advance within the company. This can include identifying skills that must be acquired,
areas in which one must improve, and educational courses that must be completed.

Employee Accountability

When employees know there will be regularly scheduled evaluations, they realize that
they are accountable for their job performance.

Communicate Divisional and Company Goals

Besides communicating employees' individual goals, employee appraisals provide the


opportunity for managers to explain organizational goals and the ways in which employees
can participate in the achievement of those goals.

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OBJECTIVES OF THE STUDY

 To study the need and importance of “Performance Appraisal”.

 To portray the profile of “Delta Paper Mills”.

 To study the performance appraisal implementation in delta paper mills.

 To make data analysis and interpretation based on the perception of the employee in
the organization.

 To summarize and find certain suggestions for the impotent of Performance Appraisal
system in the company.

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METHODLOGY OF THE STUDY

After the objective of the study has clearly stated, the next step in formal research
project is to determine the source from which the data is required to be collected. The data
collection is an interesting aspect of the study achieving data effectively the information
consists of two types of data. The diagram is as follows:

Data collections:

a) Primary data:

The primary data are those, which are collected freshly and for the first time, from the
employees directly. It is collected through the following methods.

1. Questionnaire: A structure of questionnaire was prepared and distributed among

the employees & workers.

2. Interview: Personal interviews and interaction with the employees and


contractor labour.

3. Observation: By observing the working environment.

b)Secondary data:

The secondary data are those which have already been collected by someone or else
which have been passed through statistical process. Sources of secondary data can be
categorized into two broad categories named published and unpublished statistics. Various
sources are available namely books, synergies monthly (Chakaravahini) books etc. and also
collected from various files, records and synergies casting Ltd.

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Size:

A sample of 40 employees has been selected .Although it looks to be a small sample


keeping in view the large number of employees it has to be limited because of time
constraint(8 weeks).Even then the sample size is not considered to be small. It is
enough to draw conclusions.

Type:

Since employees from all levels (strata) namely the top level, the middle level, and
the lower level are bound to experience stress, the sample has to include employees
from all levels. Stratified random sampling technique was selected while preparing
questionnaire as this was the only technique that helped to draw conclusions
accurately.

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LIMITATIONS OF THE STUDY

As the study revolves around the performance appraisal of human resources aspects
the overall organization performance cannot be ascertained. In spite of giving honest and
sincere efforts there are several limitations, which are as follows:

 The period of study is only for about 2months, which is a major constraint.

 The perception bias or attitude of the respondents may also act as hurdles to the study.

 The study is only confined to performance appraisal.

 The study cannot be oriented with all HRM practices followed by

 DELTA PAPER MILLS Ltd. because of the paucity of time requirements.

 The sample size taken for the research is small due to the constraint of time.

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CHAPTERIZATION

 The first chapter deals with introduction to the topic and to the company
and it also consists of Need for the study, Objectives of the study,
Methodology, and Limitations.

 The second chapter consists about the organization profile and about the
company profile of DELTA PAPER MILLS.LTD, VENDRA.

 The third chapter consists of Theoretical frame work of


PERFORMANCE APPRAISAL SYSTEM.

 The fourth chapter consists of Analysis and Interpretation of the study.

 The fifth chapter consists of Summary, Findings, and Suggestions .

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INDUSTRY PROFILE

Development of Paper:

Etymologically the word “paper” owes its origin to “Papyrus” (cypress Papyrus), a
plant that grew in abundance in the delta of Egypt. The barks and leaves of this plant were
woven and pressed into a sheer to be used as writing material by ancient Egyptians
(3000BC).

There is a degree of consensus that the art of making paper was first discovered in
china and its origin in that country is traced back to 2 nd Century. In about 105 A.D. T’saiLun,
an official attached to imperial court of China, created a sheet of paper using Mulberry and
other best fibers along with fishnets, old rags and hemp waste.(2 nd Century B/C)

Chinese considered paper a key invention and kept this a closely guarded secret for
over five centuries until the technology slowly made it way westward. Chinese city
containing a paper mill in the early 700’s and from this started their own paper making
industry (Early 700’s).

Note: - Arabs named paper as “KAGAZ” a name that continues to remain prevalent in India
invention of printing I 1450’s brought a vastly increased demand for paper.

Paper was first made in England in 1496. The first U.S. Mill was built in 1690, the
written house mill, Germany town, Pennsylvania.

Development of Paper Machine:

1801:

Development of paper machine was led by the two four Drinier Brothers, Henry and
seau, who in 1801, about 1/3 interest in the British patent rights of Roberts machine. They
hired Bryan Donkin who took three years to develop first practical paper machine, which
was in operation at two water mill, Hertz, England in 1804. Don kin’s company continued to
manufacture and improve the four-Drinier machine for many years. His company supplied
most of the early four-Drinier machines 9throughout the world.

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1809:

At about the same time John Dickinson, a colleague and friend of Donkin, was
working on his cylinder machine, which was refined by 1908. Infect both Dickinson and
Donkin contributed important idea to each of these machines:

1825:

The two brothers John and Christopher Philips of Kent country patented the Dandy roll
in 1825.

1826:

M.Canson of Annonay, France put a suction box under the wire of his four Drinier
machine in 1826, as had already been on cylinder machine, but on cylinder machine, but kept
this as a secret With the invention of paper machine, the amount of paper that could be
produced was soon limited by the fiber supply since cotton was the main constituent of
paper.

Mid 19th Century:

During the mid 19th Century the technology for converting wood into pulp was
developed, with a plentiful supply of pulp available the amount of paper production was then
closely related to improvements in paper machine speed.

Thus availability of writing material as always gone hand in hand with the
development of the society.

Development of Paper Industry In India:

The art of making paper reached in India though Arabs who initially learnt it from
Chinese prisoners when they raided parts of china. Some Indian Muslims might have also
learnt it directly when they visited Mongolia.

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The art of making paper was kept a fairly guarded secret by few families that initially
learn it. These papermaking families were known as “KAGZIS”. These kagzis were largely
settled in Punjab and Kashmir and flourished under the patronage of Moguls Empire.

The adoption of the art of papermaking could not be widespread in India because
Hindus, which constituted a large majority of population, did not like handling of rags and
other materials essentials to paper making.

Paper forms basic material for written communication. The need for paper was felt
because human capability to memories the accumulating wealth of information and
knowledge was limited. The limitation was over come by early Aryans settled in north India
by the use of “TamraPatra”(Copper plates), Talapatra etc.,

At the need for writing surface increased in India, attention was paid to master the
techniques of putting metals such as lead, copper and bronze to increased use in this regard.

The records suggest that before the advent of machine made paper a sizeable hand
made paper industry flourished in India. Paper was observed to be in common use almost all
over India at the close of Akbar’s region.

Paper Classification and Uses:

According to the use of paper it may be broadly classified into two categories.

1. The products, which are used for writing and printing, wrapping, packaging.
2. The products, which are comparatively thicker and stiffer for the purpose of packing,
decorating etc. this paper called as board.

Writing Paper:

Writing paper is a general trade term used to indicate all papers intended to be written
upon. The quality requirements for such kind of papers are hard size, smooth finish and low
transparency.

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Example:- Cream wove, Cream laid, Azure laid etc.

Use:- For such tools as exercise books, account books, Loose-leaf binders, registers,
letterheads and office forms.

Printing Paper:

It is a comprehensive tem used by printers for the innumerable varieties of paper


suitability for many process of production. In general a printing paper should be a good
shade, migrate size and opaque.

Examples:- Maplitho, Offset, Parchment, Photocopier etc.

Wrapping Paper:

The basic requirement of wrapping paper as that it should be able to fulfill its task of
wrapping, to contain and protect. Therefore essential requirement of this paper is its strength.

Example:- Poster, Tea yellow, Manila etc.

Packaging Paper:

This category of paper includes Kraft Paper, Linear, media etc. The basic purpose of
this paper is to pack various commodities.

Specialty Paper:

This paper is specialized to serve a particular purpose. Some of the specialty papers
include Bond paper, MICR, Electrical, Greaseproof, Tissue, Cigarette Paper, etc.

Board:

It is a general term for stiff and thick papers of 200 GSM and above. Some of the
paperboards include strawboards, millboard, duplex, triplex, etc.

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Sickness of the Small Paper Units:

Though there are large numbers of small paper units, many of them are facing the
problems of sickness such as absence official recovery plant, absence of effluent treatment
facilities etc.

Because of these problems small paper mill find it difficult to the produce quality
paper at low cost. On the other hand, large paper mills have better equipment and have
competitive advantage over small unit. As a result small paper units unable to compete with
larger units.

The sickness of small paper mills were mainly due to:

 High cost of production and low rate of return.


 Severe competition in this industry.
 Ultimate increase in cost but stagnant price of paper and paperboard.
 High rate of interest of loans from financial institutions.
 Increasing if electricity and water charges.
 Non-availability of raw materials in production time.
 Non-availability of coal in required quality and quantity.
 Cluster of mills in particular region, which resulted in demand of raw materials.

Success Factor for the Indian Paper Industry:

The success for the Indian paper industry in the medium and long term will be:

 Access to quality and competitive fiber.


 Modern technology for improved product quality.
 Improved cost competitiveness to meet International competition.
 More focused business and product mix approach, emphasizing the core strength of each
approach.
Working with along the above lines would pre-conceive plenty of joint effort with in
the paper industry itself, between the industry and the Government as well as between the
industry and its financiers.

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Outlook for the Indian Paper Industry:

The Paper Industry is observed to be in the down turn cycle and the realization is
already under severe pressure. Further, the industry is likely to face stiff competition from the
overseas suppliers too considering the cheaper products being already imported by may other
segments.

While the growth in paper consumption is moderate at the level of approximately 3 to


4 %, it is not going up in consonance with the demand growth in other sectors like
information technology etc. Moreover, the treats of cheaper imports make it imperative that
the Indian companies will have to strive hard to strive hard to improve the quality and
productivity and become cost effective with a view to combat competition from imports.

TABLE- 2.1 DEAMED FOR PAPER & PAPER BOARD IN INDIA

YEAR CULTURE PAPER INDUSTRIAL PAPER TOTAL

1995-96 1.32 1.54 2.86

1996-97 1.39 1.64 3.03

2000-01 1.68 2.11 3.79

2001-02 2.00 2.50 4.50

2002-03 2.75 3.25 6.00

2003-04 3.20 3.90 7.10

2004-05 4.00 4.50 8.50

2005-06 4.75 5.50 9.50

2006-07 5.00 5.75 9.75

(Expected)

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A finish consultancy firm, in its recent study of world market for paper and Board has
forecast the growth in capita consumption and demand for paper and paperboard in India, as
shown in the following table.

TABLE-2.3 DEMAND FORECASTE FOR PAPER AND BOARD IN INDIA

1993 2000 2005 2011


Population (million) 901.46 102.36 111.03 119.32
Per capita consumption (kg) 3.20 4.40 5.20 6.20
Paper and Board demand 2.92 4.50 5.80 7.35

(Million tones)

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TABLE-2.4 DEMAND SUPPLY SCENARIO FOR PAPER &PAPER BOARD
(MILLIONTONES)

YEAR NEWSPRINT P & W

INDUSTRIAL PAPERS
Demand as of 1995 0.69 1.24 1.33
Demand by 2000 0.01 1.95 1.74
Demand by 2005 0.99 2.45 2.36
Production in 1995 0.40 1.27 1.33
Additional Capacity 0.51 0.86 0.52
Build up required by 2000*
Additional capacity 0.74 1.48 1.29
Build up required by 2005*
Additional capacity 0.25 0.65 0.52
Build up in various

Stages of implementation
Additional Capacity 0.26 0.65 0.52
Build up in various

Stages of implementation
Additional capacity 0.49 0.84 0.77

TABLE-2.5 The price paper increased gradually during the period 1992- 1996 was as in 1997 it is
decreased.

Major Players Capacity in TPA Product mix

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AP Paper Mills 1,53,500 Cream wove, Maplitho,

Kraft
Ballarpur Industries 1,98,368 Maplitho, Cream Wove,

Bond, Others
Hindustan Paper Corp 2,00,000 Cream Wove
ITC Bhadrachalam 3,00,000 Duplex board, Maplitho,

Kraft
JK Corp 75,500 Maplitho, bond, board,

Security paper
Orient Paper & Industries 1,61,000 Cream Wove, Kraft,

Maplitho, duplex
Sinar Mas 1,10,000 Coated writing, and

Printing paper
West Coast Paper Mills 1,19,750 Cream Wove, Maplitho,

Kraft, MG Pos.

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TABLE- 2.6 PAPER PRODUCTION OF TOP TEN COUNTRIES

PAPER BOARD PRODUCTION

COUNTRY (Metric tones)


U.S.A 80,000,000
CANADA 19,000,000
JAPAN 29,000,000
CHINA 19,000,000
GERMANY 14,200,000
FINLAND 9,200,000
SWEDAN 8,400,000
FRANCE 7,600,000
ITALY 6,600,000
UNITED KINGDOM 5,200,000
INDIA 3,500,000

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COMPANY PROFILE

Introduction:

The DELTA PAPER Mills Ltd., Located at VENDRA village near BHIMAVARAM
of WEST GODAVARI Dist in A.P is one of the and at the same time most modern paper
units in the Country today.

History:

The mill initially started 1975 by SRI B.H VIJAYA KUMAR RAJU garu and
had tone into commercial production in 1978

The Krishna, Godavari delta known as the rice- bowl of Indian and more particularly
W.G.Dist comes under the well known networks of canal from the Godavari Anacut. Almost
all parts of the district have wet land. Cultivation with to paddy, crops per year since paddy
straw can be used to the 60% of the total raw material of delta paper mills and as it also is the
most economical of all the available inputs, one could not have asked suitable location.

Other raw materials such as gunny waste , cotton lintels and waste paper are produced
easily from Rajahmundry, Vizag, Eluru, Vijayawada and Hyderabad in A.P. Since the
company as well connected by broad gauge railway lines, the factory as not in the past
experienced any problem in producing these raw material.

Coal needed boil the pulp solution is obtained from the nearly singarni coal mines
which situated A.P. itself. The lad and other chemicals need in water purification are
available with coal mines, which are situated about 200 km from the site. Fortunately, the
factory is situated in the proximity of the electrolytic castic-soda and chlorine plant of the
Andhra sugars limited, Kovvur which is hardly 60 k.m from the plant bournt lime could be
produced from pidiguralla of dronchalam lime store belt in A.P.

However Udaipur in rajastan is the only source of Talcum powder which is another
chemical required for any paper –plant.

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The Delta Paper Mills Limited was established as a public limited company on 23r
may 1975. Late Sri BH.Vijay Kumar Raju and Andhra Pradesh Industrial development
corporation (APIDC) on 18th September 1975 promoted the Delta Paper Mills Limited; the
company started its commercial production on 7th April 1977.

The plant is located at Vendra, a village of Palakoderu mandal, in Andhra Pradesh.

The following reasons will explain for selecting the location.

• For bringing reputation to the native place of the founder.


• For creating employment to the rural youth.
• The availability of raw material is surrounding areas, water facilities, drainage
for disposal of effluents and its proximity to the broad gage railway line
connecting Chennai and Kolkata.
• The companies' main activity is to produce all varieties writing and printing paper. It
is mainly an agro-based industry. Its main raw material is paddy straw.
In 1976 ICICI along with IDBI, IFCI, LIC and UTI assisted the company for selling up
the product DELTA PAPER MILLS LIMITED commissioned the paper machine for
commercial production from July 1978 and pulp mill by November 1973. It earned its profits
in the second and third year of operations.

Around 2000 families are getting their lively hood from this industry besides; ill
farmers in and around the Vendra village are benefited from selling their paddy raw to the
company.

Objectives of the Company:

• To carry on the business of manufacturing and dealing in all kinds and classes of
paper.
• To manufacturing and deal in all material and substances used in the manufacturing
production of treatment of all kinds and classes of paper.

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• To buy, sell, import, process chemically or otherwise treat and to workout for special
purpose of all kinds and classes of paper.
• To plant, cultivate, produce, raise, manufacture, purchase, sell, export or otherwise
handle or deal in grass timbered, bamboo, straw to other forest products.

Types of the products of the company:

1. Cream wove: This type of paper is used for typing notebooks and for government etc;
1. Azur laid: This type of paper is used for making charts, cards etc.
2. Azur wove: This type of paper is used for making office work, used usually for rough
work.
3. Duplicating paper: This type of paper is used for stencil work cyclostyling etc., it is
used very much for rough works, color paper, vouchers etc.,
4. Colour wove: This type of is used for packing bundles, packing and covers
manufacturing.
5. Sack Kraft: This type of paper is used for packing bundles, packing and covers
manufacturing.
6. Delta Hasthi: Brand name of the books this type of paper is used for note books.

Analysis and location of the company:

The company is situated at Vendra, 8km from Bhimavaram, West Godavari that
some under the well-known Krishna Godavari Delta known as rice bowl of India. The
company's main raw materials are paddy straw, which is available in huge quantities in this
area. The other raw materials such as gunny waste, cotton linters and waste paper are
procured easily from Rajahmundry, Visakhapatnam, Eluru, Vijayawada and Hyderabad in
Andhra Pradesh.

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Capacity:

In 1978 the initial production capacity was 30 tones per day. In 1986, Delta paper
mills Limited under took an expansion project to double its capacity to 60 tones per day.
Now the capacity of the plant is 115 tones per day.

Nature of Activity:

Delta paper Mills Limited specialties in making paper alone, and produce primarily
only three types of paper.

1. Printing
2. Writing
3. Craft paper.

Raw Materials:

The following type of raw materials is used in manufacturing the paper in this
company are:

1. Paddy straw.
2. Waste paper.
3. Cotton linters.
4. Reg pulp.
5. Wood pulp.
6. Bagasse & Chikusa.
7. Gunny & Jute waste.
8. Bleaching pulp.
9. Hosiery cutting pulp and others.

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Coal:
Coal, which is essential to boil pulp solution, is obtained from sniggering calmness,
which is in AP tiles.

Water facility:

The Delta paper Mills plant requires 30 million gallons of water per day, and that up
to 60 million after expansion of the plant. The water supply for the plant is obtained form
Godavari canal system.

The company was permitted to dispose of its effluents into Godavari river drains,
which flows, by the plant.

Electricity Facility:

The Andhra Pradesh state Electricity Board (APSEB) agrees to supply, required power to the
plant and 2500KW, line was laid down from Nidadavole electric substation.

Gas and fuel:

Delta paper Mills Limited is the first paper mill in South India to utilize the natural
gasses as fuel, which is supplied by ONGC.

Transportation:

The factory has both rail and road transportation facility. Apart form these navigable
canal system aids economical transport of paddy straw and other raw materials form all
sides. So it is better place to install the paper mill which is mainly based on agricultural raw
material.

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The Delta Paper Mills limited enterprise is broadly divided into two parts:

1. Mills.
2. Administration.

Mills part divided into 10 parts:

1. Production.
2. Electrical.
3. Mechanical.
4. Paper machine.
5. Utilities.
6. Stores.
7. Quantity.
8. Personnel.

9. Co-ordinate.

10. Finishing house and paper go down.

The administration part is divided into 4 divisions:

1. Administration.
2. Accounts.

3. Marketing.

4. Purchasing.

The factory part is kept under the control of a DEPUTY MANAGER for works, to
his absence it is under the control of the in charge President of the factory (or) the factory
Chief Executive. The administration part is kept under control of the Executive
(Administration), in case of this absence it is under the control of Managing Director.

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Employment:

(AS ON 1 JANUARY 2006)

Dedicated and committed team of about 2376 employees mans the company.

Officers ------ 38

Staff ------ 156

Workers ------ 571

Workers 5 grades:

E, F, G, H, I, J

Un Semi Skilled (E) ------ 253

Semi Skilled (F) ------ 2

Semi Skilled (G) ------ 4

Skilled (H) ------ 1

Skilled (I) ------ 60

Semi Skilled (E) ------ 253

Total 571

Personnel Philosophy of Management:

Delta Paper Mill is professionally managed result oriented company. The personal or
with outstanding experience in paper manufacturing and other major industries with proven
track record in their respective professions with outmost dedication to achieve the company’s
objective.

The company adopted modern management philosophy and believes in human


resources development as a pre-requisite for optional growth of the organization.

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To the growth and development of the employees opportunities are provided to
improve their performance and professional competence by appropriate exposure to nee
based training and development programs.

Welfare, sports and recreation facilities are provided to the employees in best
traditions of the organization. The plant provides direct employment to around 3000 persons.
The trust of the policies of directed towards the adoption of appropriate systems of
management for providing security to share holders, speed in decision making, service to the
customer and success of the employees exposes in the achievement of companies objectives.

Environment Policy:

Delta paper Mills shall continue to pursue the policy of modifying and upgrading
the existing technologies and processes. Implementing eco-friendly measures for minimizing
waste generation, resource conservation and prevention of pollution of contribute to wars
environmental improvement.

Reduction in Water Consumption:

With the commitment of the employees and the support of the management towards
energy conservation, continuous In-house R&D and energy conservation cell studies, the
company is able to substantially reduce the water consumption.

Paper Making Process:

The manufacture different type of writing printing, packaging papers and Boards
using Sulphate process. The principal raw materials are Bamboo and wood. The Bamboo and
wood are chipped in chippers and coved to chip silos. From the chip silos, the chip are fed to
batch digesters with cooking, the pulp that comes out of the diggers is unbleached pulp and

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then passed through pulp Knitters to remove Knots and then passed through four stage
counter current washer for screening the foreign matters and separating the spend liquor is
collected in big storage tanks from where it goes to soda recovery for converting into white
liquor for use cooking chemical in diggers.

The unbleached pulp fitter through screening to separate out the foreign materials is
processed in bleaching plant to make it white for manufacturer of white/color paper. The
pulps bleached in three stages consisting of chlorination. Cause extraction and hypochlorite
in Bleach Plant No.2 and in addition chlorine Dioxide Bleaching is taking place in Bleach
plant no.03 as per requirement.

The bleached and unbleached pulp are send to stock preparation section, where the
same is suitably refined to impart strength to the paper to be produced and suitable
chemicals/dyes are added to give desirable chemicals generally used are Talcum, Alum,
Rosin clay, Whitening agent.Various dyes for tinting & colorings.

The wet web of paper is taken passed through roller presses with Woolen/Synthetic
felts acting as cushion between the set paper and rolls. The function of the press is to extract
future water as far as possible from the wed paper sheet and impart the required texture and
when the paper comes out of the press it contains around in series to give dry paper.

The sheet is then passed through highly polished rolls stacked one over the other. This
process of calendaring imparts smooth finish to the paper. Then the paper sheet is wound
around rotating shaft and rolls of paper are built up. These rolls converted into sheets on
sheet cutters to meet the sheet orders. The rewound small reels and bundles of reams are
packed with Hessian/HDPE cloth and transferred to go down for dispatch to customers.

At corporate level, the Vice President (Finance) executes the overall responsibility for
finance activities Viz., Management of Budgetary Activities, Electronic Media Data Control
and through the respective Managers.

30
At corporate level, the Vice President (Commercial) executes the overall
responsibility for Marketing activities and contract reviews, Marketing Co-ordination,
Conversion activities put side the works.

At Factory level, the Vice President (Personnel &Administration) executes


maintenance, plant accounting, material management and technical service though the
General Manager (works) and other respective Managers for implementation of Corporate
Production plans and Plant Management.

At Factory level, the General Manager (works), execute the overall responsibility for
Planning of Production and Maintenance though the Deputy General Manager (production),
Deputy General Manager (PD&CS).

At factory level, the Deputy General Manager (Tech.), executes the overall
responsibility for quality and formulates Norms for quality.

31
ORGNIZATIONAL CHART IN DELTA PAPER MILLS

BORD OF DIRECTOR

MANAGING DIRECTOR

CHIEF EXICUTIVE

WORKS MANAGER GENARAL MANAGER

(Engineering) (Finance and Administration)

SUPDT SUPDT SUPDT SUPDT EXICUTIVE EXICUTIVE

Paper Paper Process Electrical Engineer Engineer

M/c Mills Quality Civil Mechanical Mechanical

Finance Manager Manager Sr. Manager

Manager Personal Stores (Marketing & Purchase)

2 Clerks

2 Typists Marketing & Purchase

Deputy Manager

Asst. Manager

Sales Officer

Staf
32
ORGNIZATIOLNAL CHART OF THE PERSONAL DEPARTMENT

GENARAL MANAGER

ASSISTANT MANAGER

PERSONAL

MANAGER

PERSONAL WELFARE SECURITY MEDICAL


OFFICER OFFICER OFFICER OFFICER

ASST.PER.O CANTEEN SECURITY DOCTER


FFICER SUPERVISOR SUPERVISOR

GARDINER SECURITY COMPOUNDER


LABOUR GUARDS
ASSISTENTS

MAJDUR
SWEEPERS
ASSISTENTS

TIMEKEEPERS

TYPIST

ATENDER

33
CONCEPT OF PERFORMANCE APPRAISAL SYSTEM

Introduction:

Appraising the performance of individuals, groups and organizations is a common practice


of all societies. While in some instances these appraisal processes are structured and formally
sanctioned, in other instances they are an informal and integral part of daily activities. Thus,
teachers evaluate the performance of students, bankers evaluate the performance of creditors,
parents evaluate the behaviour of their children, and all of us, consciously or unconsciously
evaluate our "own actions from time to time. In social interactions, performance is conducted in a
systematic and planned manner to achieve widespread popularity in recent years.

Meaning:

Performance appraisal is a method of evaluating the behavior of employees in the work


spot, normally including both the quantitative and qualitative aspects of hob performance.
Performance here refers to the degree of accomplishment of the tasks that make up an
individual's job. It indicates how well an individual is fulfilling the job demands. Often the term
is confused with effort, but performance is always measured in terms of results and not efforts.
Some of the important features of performance appraisal given, they are:

1. Performance appraisal is the systematic description of an employee's job- relevant strengths and
weaknesses.
2. The basic purpose is to find out how well the employee is performing the job and establish a plan of
improvement.
3. Appraisals are arranged periodically according to a definite plan.
4. Performance appraisal is not job evaluation. Performance appraisal refers to how well someone is
doing the assigned job. Job evaluation determines how much a job is worth to the organization and,
therefore, what range of pay should be assigned to the job.

Use of Performance Appraisal:


34
• Performance appraisal is helpful in assessing a firms human resources data must be
available that describe the promobility and potential of all employees.
• A well designed appraisal system provides a profile of the organization's human
resource strengths and weaknesses to support this effort.
• Performance evaluation ratings may be helpful in predicting the performance of job
applicants.
• Performance appraisal will point out employee specific needs for training and
development.
• Performance appraisal is useful in career planning and development.
• Performance appraisal results provide a basis for rational decisions regarding
compensation programmes.
• Performance appraisal data are also frequently used for decisions in several areas of
internal employee relations, including promotion, demotion, termination, lay-off. and
transfer.

• Performance appraisal is useful in assessment of employee potential.

• Performance appraisal can be used to determine whether HR programmes such as


selection, training, and transfers have been effective or not.

Objectives of Performance Appraisal:

Performance appraisal aims at attaining the different objectives, they are

1. To create and maintain a satisfactory level of performance.


1. To contribute to the employee growth and development through training, self and
management development programmes.
2. To help the superiors to have a proper understanding about their subordinates
3. To facilitate fair and equitable compensation based on performance.
2. To facilitate for testing and validating selection tests, interview techniques through
comparing their scores with performance appraisal ranks.
4. To provide information for making decisions regarding lay off, retrenchment etc.

35
3. To ensure organizational effectiveness through correcting employee for standard and
improved performance, and suggesting the change in employee behavior.
Appraisal Process:

Each step in the process is crucial and is arranged logically. Many organizations make
every effort to approximate the ideal process, resulting in first-rate appraisal systems.
Unfortunately, many others fail to consider one or more of the steps and, therefore have less-
effective appraisal system.

Objectives of

Performance appraisal

Establish job

Expectations

Design an appraisal

Programme

Appraise performance

Performance

Interview

Use appraisal data for

appropriate Purpose

36
1. Objectives of Appraisal:

Objectives of appraisal include effecting promotions and transfers, assessing training


needs, awarding pay increases, and the like. The emphasis in all these is to correct the problems.

2.Establish job expectations:

The second step in the appraisal process is to establish job expectations. This includes
informing the employee what is expected of him or her on the job.

3.Design appraisal programme:

Designing an appraisal programme posses several questions which need answers. They
are (i) Formal versus informal appraisal; (ii) Whose performance is to be assessed? (iii) Who are
the raters? (iv)What problems are encountered? (v) How to solve the problems? (vi) What should
be evaluated? (vii) When to evaluate? (viii) What methods of appraisal are to be used?

4.Performance Interview:

Performance interview is another step in the appraisal process. Once appraisal has been
made of employees, the raters should discuss and review the performance with the rates, so that
they will receive feedback about where they stand in the eyes of superiors.

5.Use of Appraisal data:

The final step in the evaluation process is the use of evaluation data. The data and
information generated through performance evaluation must be used by the HR department.

37
Methods of Performance Appraisal:

With the evaluation and development of appraisal system, a number of methods or


techniques of performance appraisal have been developed.The important among them.

Traditional Methods

1) Graphic Rating Scales:

Graphic rating scales compare individual performance to an absolute standard. In this


method, judgments about performance are recorded on a scale. This is the oldest and widely used
technique. This method is also known as linear rating scale or simple rating scale. The appraisers
are supplied with printed forms, one for each employee. These forms contain a number of
objectives, behavior and trait - based Qualities and characters to be rated like quality and volume
of work, job knowledge, dependability, initiative, attitude etc., in the case of workers and
analytical ability, creative ability, initiative, leadership qualities, emotional stability in the case of
managerial personnel. These forms contain rating of scales. Rating scales are of two types, viz.,
continuous rating scale and discontinuous rating scales. In continuous order like o, 1, 2, 3, 4 and
5 and in discontinuous scale the appraiser assigns the point to each degree. The points given by
the rater know performance regarding each character. The points given by the rater to each
character are added up to find out the overall performance. Employees are ranked on the basis of
total points assigned to each one of them.

One reason for the popularity of the rating scales is its simplicity, which permits many
employees to be quickly evaluated. Such scales have relatively low

Design cost and high in case of administration. They can easily pinpoint significant dimensions
of the job. The major draw back to these scales is their subjectivity and low reliability. Another
limitation is that the descriptive words often used in such lies may have different meanings to
different raters.

38
2) Ranking Method:

Under this method the employees are ranked from best to worst on some
characteristics. The rater first finds the employee with the highest performance and the
employees with the lowest performance in that particular job category and rates the former as the
best and the later as the poorest. Then the rater selects the next highest and next lowest and so on
until he rates all the employees in that group. Ranking can be relatively easy and inexpensive, but
its reliability and validity may be open to doubt. It may be affected by rater bias or varying
performance standards. Ranking also means that somebody would always be in the backbench. It
is possible that the low ranked individual in one group may turnout to be superstar in another
group. One important limitation of the ranking method is that size of the different between
individuals is not well defined. For instance, there may be little difference between those ranks
third and fourth.

3) Paired Comparison Method:

This method is relatively simple. Under this method, the appraiser ranks the employees by
comparing one employee with all other employees in the group, one at a time. As illustrated, this
method results in each employee being given a positive comparison total and a certain %age total
positive evaluation.

Example: A B C D E

A - A A A A

B - - C D E

C - - - D E

D - - - - E

E - - - - -

39
To compute Employee's positive evaluations:

Number of positive evaluations X 100 = Employee's % Superior evaluation Total


number of evaluations

Employee A Employee B Employee C Employee D

(4/4)* 100=100% (0/4)* 100=0% (2/4)* 100=50% (1/4)* 100=25%

Employee E (3/4) * 100 = 75%

4) Forced Distribution Method:

The rater may rate his employees at the higher or at the lower end of the scale under the
earlier methods. Forced distribution method is developed to prevent the raters from rating too
high or too low. Under this method, the rater after assigning the points to the performance of each
employee has to distribute his ratings in a pattern to conform to normal frequency distribution.
Thus, similar to the ranking technique, forced distribution requires the raters (supervisors) to
spread their employee evaluation in a prescribed distribution. This method eliminates central
tendency and leniency biases. However, in this method employees are placed in certain ranked
categories but not ranked within the categories. Quite often work groups do not reflect a normal
distribution or individual performance. This method is based on the questionable assumption, as
group of employees will have the same distribution of excellent, average and poor performers. If
one department has all outstanding employees, the supervisor would find it extremely difficult to
decide who should be placed in the lower categories. Difficulties can also arise when the raters
most explain to the employee why he was placed in one grouping and others were placed in
higher groupings.

5) Checklist Methods:

The Checklist is a simple rating technique in which the supervisor is given a list of
statement or words and asked to check statements representing the characteristics and

40
performance of each employee. There are three types of checklist methods, viz, simple checklist,
weighted checklist and forced choice method.

(a) Simple Checklist Method:

The checklist consists of large number of statements concerning employee behavior.

Example: Simple Checklist Method,


Wadia Industries Ltd.,
Performance Appraisal Form
Name of Employee: Number:

Designation:
Department:

Checklist of Qualities:

1. Behavior is the employee punctual in attending the office?

A) Yes B)No

2. Does the employee behave courteously with his superiors?

A) Yes B) No

3. Does the employee maintain sound customer relations'?


A) Yes B) No

4. Is the employee sincere in doing his job?

A) Yes B) No

The rater checks to include if the behavior of an employee is positive or negative to each
statement. Employee performance is rated on the basis of number of positive checks. The

41
negative checks are not considered in this method. A difficulty often arises because the
statements may appear to be virtually identical in describing the employee. The words or
statements may have different meanings to different raters.

(b)Weighted Checklist:

The weighted checklist method involves weighting different items in the checklist having a
series of statements about an individual, to indicate that some are more important than others.
The rater is expected to look into the questions relating to the employee's behavior, the attached
rating scale (or simply positive /negative statements where such a scale is not provided) and tick
those traits that closely describe the employee behavior. Often the weights are not given to the
supervisors who complete the appraisal process, but are computed and tabulated by someone
else, such as a member of the personnel unit. In this method the performance ratings of the
employee are multiplied by the weights of the statements and coefficients are added up. The
cumulative coefficient is the weighted performance score of the employee. Weighted
performance score is compared with the overall assessment standards in order to find out the
overall performance of the employee.

The weighted checklist, however, is expensive to design to design, since checklist for
each different job in the organization must be produced. This may prove time consuming also in
the end. Though the weighted checklist method is evaluative as well as development, it has the
basic problem of the evaluator not knowing the items, which contribute mostly of successful
performance.

(C) Forced Choice Method:

This method was developed at the close of World War II. Under this method, a large
number of statements in groups are prepared. Each group consists of four descriptive statements
(treated) concerning employee behavior. Two statements are most descriptive (favorable) and two
are least descriptive (unfavorable) of each m tetrad. Sometimes there may be five statements in

42
each group out of which one would be neutral. The actual weightings of the statements are kept
secret.

The appraiser is asked to select one statement that that mostly describes employee's behavior out
of the two favorable statements are kept secret. The appraiser is asked to select one statement that
that mostly describes employee's behavior out of the two unfavorable statements. The items are
usually a mixture of positive and negative statements. The intent is to eliminate or greatly reduce
the rater's personal bias, specially the tendency to assign all high or low ratings. The items are
designed to discriminate effective from ineffective workers as well as reflect valuable personal
qualities.

6) Critical Incident Method:

Employees are rated discontinuously, i.e., once in a year or six months under the earlier methods.
The performance rated may not reflect real and overall performance, as the rater would be
serious about appraisal method, i.e., critical incident method has been developed. Under this
method, the supervisor continuously records the critical incidents of the employee performance
or behavior relating to all characteristics (both positive and negative) in a specially designed
notebook. The supervisor rates the performance of his subordinates on the basis of notes taken
by him. Since the critical incident method does not necessarily have to be a separate rating
system, it can be fruitfully employed as documentation of the reasons why an employee was
rated in a certain way.

The critical incident method has the advantage of being objective because the rater
considers the records of performance rather than the subjective points of opinion.

7) Essay or Free From Appraisal:

This method requires the manager to write a short essay describing each employee's
performance during the rating period. This format emphasizes evaluation of overall performance,
based on strengths weakness of employee performance, rather than specific job dimensions. By

43
asking supervisors to enumerate specific examples of employee behavior, the essay technique
minimizes supervisory bias and halo effect.

8) Group Appraisal:

Under this method, an employee is appraised by a group of appraisers. This group


consists of the immediate supervisor of the employee, to other supervisors who have close
contact with employee's work, manager or head of the department and consultants. The head of
the department or manager may be the chairman of the group and the immediate supervisor may
act as the coordinator for the group activities. This group uses any one or multiple techniques
discussed earlier. The immediate supervisor enlightens others members about the job characters,
demands, standards of performance etc. Then the group appraises the performance of the
employee, compares the actual performance with standards, find out the deviations, discusses the
reasons therefore, suggests ways for improvement of performance, prepares action plans, studies
the need for change in job analysis and standards and recommends change, it necessary. This
method is widely used for purpose of promotion, demotion and retrenchment appraisal.

9) Confidential Report:

Assessing the employee's performance confidentially is a traditional method of


performance appraisal. Under this method, superior appraises the performance of his
subordinates based on his observations, judgments and institutions. The superior keeps his
judgment and report confidentially. In other words the superior does not allowed the employee to
know the report and his performance. Superior writes the report about his subordinates,
strengths. Weakness, intelligence, attitude to work, sincerity, commitment, punctuality,
attendance, conduct, character, friendliness, etc,

Though confidential report is a traditional method, most of the public sector organizations
still follow this method in appraising the employee's performance. This method suffers from a
number of limitations.

44
Modern Methods

1) Behaviorally Anchored Rating Scales (BARS):

The Behaviorally Anchored Rating Scales (BARS) method combines elements of the traditional
rating scales and critical incidents methods. Using BARS, job behaviors from critical incidents -
effective and ineffective behaviors are described more objectively. The method employs
individuals who are familiar with a particular job to identify its major components. They then
rank and validate specific behaviors for each of the components. BARS require considerable
employee participation; its acceptance by both supervisors and their subordinates may be greater.
Proponents of BARS also claim that such a system differentiates among behavior, performance
and results, and consequently is able to provide a basis for setting developmental goals for the
employee. Because it is job - specific and identities observable and measurable behavior, it is
more reliable and valid method for performance appraisal.

2) Assessment Centre:

This method of appraising was first applied in German Army in 1930. Later business and
industrial houses started using this method. This is not a technique of performance appraisal by
itself. In fact it is a system or organization, where assessment is done by several individuals and
also by various experts by using various techniques.

In this approach individual from various departments are brought together to spend two or three
days working on an individual or a group assignment similar too the ones they'd be handling
when promoted. All assess get an equal opportunity to show their talents and capabilities and
secure promotion based on merit. An assessment model is shown below.

Human Resource Accounting deals with cost of and contribution of human resource to the
organization. Cost of the employee includes cost of manpower planning, recruitment, selection,
induction, placement, training, development, wages and benefits etc. employee contribution is
the money value of employee service which can be measured by labour productivity or value
added by human resources.

45
3) Management by objectives:

Although the concept or management by objectives was advanced by Peter F.Duckers way
back in 1954, it was described only recently as 'large range' in performance appraisal.
Refinements brought out by George Odione, Valentines, Humble and others have enriched the
concept and made it more acceptable all over the globe as an MBO in their work settings. Some
of the companies which implemented MBO reported excellent results, others disappointments,
and many in decisions. Started briefly, MBO is a process whereby the superiors and subordinate
managers of an organization jointly identify its common goals, define each individual's major
areas of responsibility in terms of results excepted of him, and use these measures of guides for
operating the unit and assessing the contribution of its members. Generally, the unit and assessing
the contribution of its members.

Generally the 1VIBO is undertaken along the following lines.

■ The subordinate and superior jointly determine goals to be accomplished during the
appraisal period and what level of performance is necessary for the subordinate to
satisfactory achieve specific goals.
■ During the appraisal period the superior and subordinate update and later goals as
necessary due to changes in the business environment.

4) Psychological Appraisal:

Psychological appraisal are conducted to asses the employee potential, Psychological


appraisal consist of

(a) In - depth interviews


(b) Psychological tests
(c) Consultations and discussions with the employee
(d) Discussions with the superior's sub-ordinates and peers
(e) Reviews of others evaluations.

46
Evaluation is conducted in the areas of (a) employee's intellectual abilities, (b)Emotional
stability, (c) motivational responses, (d) sociability, (e) employees ability to comprehend the
vents, and (f) ability to foresee the future.

5) Counseling:

After the performance of the employee is appraised, the superior should inform
the employee about the level of his performance, the reason for the same, need for and
the methods of improving the performance. The superior should counsel the employee
about his performance and the methods of improving it.

Counseling is a planned, systematic intervention in the life of an individual who


is capable of choosing the goal and the direction of his development. Thus, the purpose
of counseling is to help the employee aware of his own performance, his strengths and
weakness, opportunities availabilities available for performance counseling can be done
in the form of performance interview by the superior.

The Post Appraisal Interview:

The post appraisal interview has been considered by most of the organizations, as well as
employees, as the most essential part of appraisal system. This interview provides the employee
the feedback information, and an opportunity to appraiser to explain the employee his rating, the
traits and behavior he has taken into consideration for appraisal etc.

It also gives the opportunity to employee to explain his views about the rates, standards or
goals, rating scale, internal and external environment causes for low level of performance, his
resources responsible for performance etc. further it helps both the parties to review standards,
set new standards based on the reality factors, and helps the appraiser to offer his suggestions,
help, guide and coach the employee for his advancement. Thus, the post appraisal interview is
designed to achieve the following objectives.

47
1. To let employees know where they stand.
2. To help employees do a better job by clarifying what is expected of them;
3. To plan opportunities for development and growth;
1. To strengthen the superior -subordinate working relationship by developing a mutual
agreement of goals;
2. To provide an opportunity for employees to experience themselves on
performance related issues.

Relating Performance Appraisal to Rewarding:

Management should recognize and performance. The forms of recognizing and rewarding
performance include: (a) Private and public praise, (b) Written commendation, (c) published
commendation, (d) increased autonomy, (e) change in job title, (f) Status symbols like office
space, furnishings, (g) performance bonuses, (h) salary increases, (i) promotion in grade, or
increase in responsibilities and (j) various forms of supplementary compensation. Managers
should match the rewards both with performance and with the perception and needs of the
employee.

6) Managerial Appraisal:

It is relatively easy to appraise the performance of technical or operative employees


compared to managerial personnel. This is because; the performance of operative employees can
be measured quantitatively, whereas the performance of managers cannot be determined
quantitative terms. Harold Koontz has developed a concept of managerial functions, viz.,
planning, organizing, leading motivating, staffing and controlling. Performing a number of or
series of activities can perform each of these functions. For example, performing staffing
functions requires performing a series of activities like analyzing jobs of his department,
planning for human resources, deciding upon internal and external recruitment. Thus each
function and sub functions of manager are elaborated into a series of activities. The checklist
contain the questions in these areas is prepared with a five degree rating scale, i.e., externally
48
poor performance, neither poor nor fair performance and externally fair performance. Thus this
technique measures the performance of managers in managing organizational environment.

Importance of performance appraisal:

For many organizations the primary goal of an appraisal system is to improve


individual and organizational performance. There may be other goals, however. In fact,
performance appraisal data are potentially valuable for virtually every human resource
functional area.

System Of Performance Appraisal:

Performance appraisal is a nine-step process:

1. Establish performance standards.


2. Communicate standards/expectations to employee.
3. Measure actual performance due to the environment influences.
4. Adjust the actual performance due to the environmental influences.
5. Compare the adjusted performance what that of others and previous.
6. Compare the actual performance with standards and find out deviations, if any.
7. Communicate the actual performance to the employee concerned.
8. Suggest changes in job analysis and standard, if necessary.
9. Follow-up performance appraisal report.

At the first stage, performance standards are established based on the job description and
job specification. The standard should be clear, objective and incorporate all the factors.

The second stage is to inform these standards to all the employees including appraisers.

The third stage is following the instructions given for appraisal, measurement of
employee performance by the appraisers through observations, interviews, records and reports.
49
Fourth stage is finding out the influence of various internal and external factors on actual
performance. The influence of these factors may be either inducing or hindering the employee
performance. The measured performance may be adjusted according to the influence of external
and internal factors. The performance derived at this stage may be taken actual performance.

Fifth stage is comparing the actual performance with that of other employees and
pervious performance of the employee and others. This given an idea where the employee to the
influence of external and internal factors. The performance derived at this stage may be taken
actual performance.

Sixth stage is comparing the actual performance with the standards and finding out
deviations. Deviations may be positive or negative. If employee's performance is more than
standards, it is positive deviation and vice-versa is negative deviation.

Seventh stage is communicating, the actual performance of the employee and other
employees doing the same job and discuss with him about the reasons for the positive or
negative deviations from the pre-set standards as the case may be.

Eighth stage is suggestions necessary changes in standards in standards, job analysis, and
internal and external environment.

Ninth stage is follow-up of performance appraisal report. This stage includes guiding,
counseling, coaching and directing the employee or making arrangements for training and
development of the employee in order to ensure improved performance. If actual performance
is very poor and beyond the scope of improvement it is necessary to take steps for
demotion or retrenchment or any other suitable measure.

50
Key elements of performance appraisal system are presented in figure
below.

Human Performance Employee

Performance Appraisal Feedback

Performance

Measures

Performance – Related

Standards

Human Resources Employee

Decisions Records

51
The usual steps are as follows

Plan the performance

Determine responsibility for appraisal

Appraisal period

Examine work performed

Appraisal the results

Conduct appraised interview

Discuss goals for next period

Problems in performance appraisal:

Performance appraisal has come under a heavy barrage of criticism. The list of the
problems that have been associated with performance appraisal are as follows:

• A potential weakness of traditional appraisal methods is that they lack


objectivity.

• A huge challenge that impedes an effective performance evaluation is the bias,


which can be either positive or negative.

• Some times halo error occurs when a manager generalizes one positive
performance feature or incident to all aspect of employee performance.
• Leniency: - Giving an undeserved high performance appraisal rating to an
employee.

52
• Strictness: - Being unduly critical of an employee's work performance.

Establishment of performance appraisal criteria:

The most common appraisal criteria are traits, behaviors, competencies, goal achievement,
and improvement potential. The main objective of establishment of performance criteria is to
identify the aspects of a person's performance that an organization should evaluate.

• Traits: -

Certain employee traits such as attitude, appearance, and initiative are the basis for
some evaluations.

• Behaviors: -

When an individual's task outcome is difficult to determine, organizations may


evaluate the person's task related behavior or competencies. If certain behaviors result in
desired outcomes, there is merit in using them in the evaluation process.

• Competencies: -

This includes a broad range of knowledge, skills, traits, and behaviors that may be
technical in nature, relate to interpersonal skills or be business oriented.

• Goal achievement: -

If organizations consider ends more important than means, goal achievement


outcomes become an appropriate factor to evaluate.

• Improvement potential: -

When organizations evaluate their employees* performance, many of the criteria used focus on
the past. From a performance management view point the problem is that you cannot change the past.
Unless a firm takes further steps, the evaluation data become merely historical documents. Therefore
firms should emphasize the future, including the behaviors and outcomes needed to develop the

53
employee, and in the process achieve the firm's goals. This involves an assessment of the employee's
potential.

Characteristics of an effective appraisal system:

The basic purpose of a performance appraisal system is to improve performance of individuals,


teams, and the entire organization. The system may also serve to assist in the making of administrative
decisions concerning pay increases, transfers, or terminations. In addition, the appraisal system must be
legally defensible. Organizations should seek an accurate assessment of performance that permits the
development of a plan to improve individual and group performance.

The following factors assist in accomplishing these purposes;

• Job related criteria: -

Job relatedness is perhaps the most basic criteria in employee performance appraisal.
More specifically, evaluation criteria should be determined through job analysis.

• Performance expectations: -

Managers and sub-ordinates must agree on performance expectations in advance of the appraisal
period. On the other hand, if employees clearly understand the expectations, they can evaluate their own
performance and may timely adjustments as they perform their jobs without having to wait for the
formal evaluation review.

• Standardization: -

Firm should use the same evaluation instrument for all employees in the same job category-
who work for the same supervisor. Supervisors should also conduct appraisals covering similar
periods for these employees. Regularly scheduled feedback sessions and appraisal interviews for
all employees are essential.

 Trained appraisers: -

54
The individual or individuals who observe at least a representative sample of job performance
normally have the responsibility for evaluating employee performance. This person is often the
employee's immediate supervisor. Training should be given to these appraisers to ensure accuracy and
consistency. A training module posted on the internet or company intranet may serve to provide
information for managers as needed.

• Continuous open communication: -

Most employees have a strong need to know how well they are performing. A good appraisal
system provides highly desired feedback on a continuing basis. There should be few surprises in the
performance review.

• Performance reviews: -

A performance review allows them to detect any errors or omissions in the appraisal, or an
employee may simply disagree with the evaluation and want to challenge it. Constant employee
performance documentation is vitally important for accurate performance appraisal.

• Due process: -

Ensuring due process is vital. If the company does not have a formal grievance procedure, it should
develop one to provide a employees an opportunity to appeal appraisal results that they consider
inaccurate or unfair. They must have a procedure for pursuing their grievances and having them
addressed objectively.

55
Appraisal Process Followed In Delta Paper Mills:

In delta paper mills they are following one of treditional method of performance
appraisal, that is critical incident method. But it is not helpful for the employees, because it is
older method.

Critical Incident Technique:

This, too, is a type of appraisal for the employee alone. Here, the employee's best and
worst incidents of behavior are analyzed annually. These events are the ones that are the most
critical in appraising the employee.

56
DATA ANALYSIS AND INTERPRETATION

Human Resources are the greatest assets for any organization. These
recourses should be developed to their fullest extent for the efficient functioning of an
organization and their performance needs to appraise continuously.

The present study is aimed at analyzing the “Performance Appraisal system” at DELTA
PAPER MILLS at VENDRA. There is a felt, need and justification to conduct surveys and to
know the perceptions of employees regarding existing practices. A structured questionnaire has
been surveyed among 40 respondents by adopting strata technique. And their perceptions are
analyzed and interpreted in this chapter.

For the purpose of survey, a sample of 40 employees has been taken into consideration
with a view to assess the "Performance Appraisal System" in DELTA PAPER MILLS LIMITED
Performance appraisal helps in the assessment of individual potential.

57
Table-4.1 Performance Appraisal is the assessment of
individual potential.
S.No. Rating Scale No. of In%
Respondents
1 Strongly Agree 7 17.5
2 Neutral 4 10
3 Strongly Disagree 0 0
4 Agree 29 72.5
5 Disagree 0 0
Total 40 100
Graph-4.1

Analysis:

From the above table-4.1 it can be known that 72 % of respondents have agreed about
the assessment of individual potential and 17.5 % of them have strongly agreed of the above
statement and 10 % of the employees are in a neutral stage and where none of them have
disagreed for the above statement. So majority of the respondents i.e. 72.5 % of the respondents
have agreed about the assessment of individual potential.

58
Interpretation:

From the above analysis we can interpret that, some of the employees were in neutral
position, because the appraisal system in the organization was not in a full fledge way.

Table-4.2

Performance Appraisal system followed in the organization is rational and fair.

S.No. Rating Scale No. of ln%


respondents
1. Strongly Agree 1 2.5
2. Neutral 12 30
3. Strongly Disagree 1 2.5
4. Agree 22 55
5. Disagree 4 10
Total 40 100
Graph-4.2

Analysis:
59
From the above table-4.2 it can be known that, 55% of respondents have agreed that die
performance appraisal system followed in the organization rational and fair and 30 of the
respondents are in neutral stage. Where as 2.5pciceiU of the respondents have agreed for the
above statement and 2.5petce&t of the respondents have strongly disagreed, where 10 % of the
respondents have disagreed for the above statement.

Interpretation:

From the above analysis we can interpret that, some of the employees were in neutral
position. Because the organization doesn’t following the company’s policies fairly.

Table-4.3

Job expectations are informed and the superiors set the tasks.

S, No. Rating Scale No. of respondents In%


1. Strongly Agree 3 7.5
2. Neutral 10 25
3. Strongly Disagree 0 0
4. Agree 24 60
5. Disagree 3 7.5
Total 40 100

Graph-4.3

60
Analysis: From the above table-4.3 it can be known that, 60% of respondents have agreed
that the job expectations are informed and the superiors set die tasks. And 25% of die respondents
are in neutral stage and 7,5% strongly agree for above statement and where as 7.5% of the
respondents disagree for die above statement, none of them are in a stage of strongly disagree
opinion.

Interpretation: The above analysis shows that, some of employees were in neutral position.
Because the job expectations were not informed, and the tasks were not assigned by superiors
properly.

Table-4.4

Performance Appraisal followed in the Organization helps to the Training and development needs of
employee.

zS.No. RatingScale No. of In%


respondents

1. Strongly Agree 6 15
2. Neutral 4 10
3. Strongly Disagree 0 0
4. Agree 27 67.5

61
5. Disagree 3 7.5
Total 40 100
Graph4.4

62
Analysis:

From the above table-4.4 it is found that, 67.5% of respondents have agreed for the performance
appraisal followed in the organization helps to assess the training and development needs of
employee and I5 % of them have strongly agreed in ID-% of the respondents are in neutral stage
and the remaining 7.5% of the respondents are in disagreed opinion. Where none of them are is
strongly disagreed opinion.

Interpretation: The above analysis states that, majority of the employees opined that a good
performance appraisal system in the organization, helps to train and develop an employee in all
aspects.

Table-4.5

The Performance appraisal in the organization helps to recognize the competence and potential
of an individual.

S.No. Rating Scale No. of ln%


respondents

1. Strongly Agree 4 10

2. Neutral 3 7.5
3. Strongly Disagree 1 2.5
4. Agree 30 75
5. Disagree 2 5
Total 40 100

63
Graph-4.5

Analysis:

From the above table-4.5 it is found that, 75% of respondents have agreed for the performance
appraisal in the organization helps to recognize the competence and potential of individual and 10
% of the respondents have strongly agreed, and 7.5% of the respondents are in neutral stage and
5% are in disagreed opinion where as 2.5% of the respondents strongly disagree for the above
statement

Interpretation:
The above analysis elicits that, some of the employees were in neutral and disagree position.
Because the appraisal process in the organization is not that much effective.

64
Table-4.6

Employees are happy with the assessment of performance followed in the organization.

No. of
S.No. Rating Scale ln%
Graph-4.6 respondents
1. Strongly Agree 3 7.5

2. Neutral 14 35
3. Strongly Disagree 0 0
4. Agree 18 45
5. Disagree 5 12.5
Total 40 100

Analysis: From the above table-4.6 it is found that, 45% of respondents have agreed that
they are happy with the assessment of performance appraisal followed in the organization. And
35 % of the respondents are in neutral stage and 12.5% of the respondents are in a disagreed
stage where 7.5% have strongly agreed for the above statement but none of them have strongly
disagreed for this statement.
65
Interpretation:We can interpret that, most of the employees were in disagree and neutral
position. Because the assessment system in the organization was not up to the mark.

66
Table-4.7

Employees have been appraised fairly according to the company's policies.

S. No. Rating Scale No. of In %


respondents
1. Strongly Agree 2 5
2. Neutral 13 32.5
3. Strongly Disagree 0 0
4. Agree 23 57.5
5. Disagree 2 5
Total 40 100

Graph-4.7

Analysis: From the above table-4.7 it is found that, 57.5% of respondents have agreed that
the employees have been appraised fairly according to the company policies and 32.5% of the
respondents are neutral stage and 5% of them are strongly agree and where as 5% of the
respondents disagree for the above opinions and none of them have disagree for the above
opinion.

Interpretation: Here we can state that, most of the employees were in disagree and neutral
position. Because performance appraisal was not done fairly according to the companies policies.

67
Table-4.8 Advises and suggestions are given to the employees during the appraisal process.

S. No. Rating Scale No. of In%


respondents
1. Strongly Agree 3 7.5
2 Neutral 15 37.5
3. Strongly Disagree 0 0
4. Agree 10 25
5. Disagree 12 30
Total 40 100

Graph-4.8

Analysis: From the above table4.8 it is found that, 30 % of respondents have disagreed that
advises and suggestions are given to the employees during the appraisal process and 25% of them
have agreed and 7.5% of the respondents strongly agree and majority of the respondents i.e.
37.5% are in a neutral stage and none of them have disagreed for the above statement.

Interpretation: The above analysis exhibits that, employees are expecting many more
suggestions and advises, during the appraisal process that would be helpful for their career.

68
Table-4.9

The employees accept the appraisal feed back as.

S. No. Rating Scale No. Of %


respondents
1. Positive way 3 7.5
2. Uninteresting 15 37.5
3. Negative way 0 0
4. Neutral 10 25
Total 40 100

Graph-4.9:

Analysis: From the above table-4.9 it is found that, 50% of respondents have a
positive way regarding acceptance of the appraisal feed back. And 47.55 of them are in a
neutral opinion and 2.5% of the respondents feel it uninteresting on the above statement.
And none of them have a negative acceptance of this statement

Interpretation:

This analysis shows that, employees are not much interested in taking the appraisal feedback.

69
Table-4.10 The appraiser of the company should be.

S.No. Rating Scale No. of In%


respondents
1. Superior 13 32.5
2. HOD 25 62.5
3. Subordinate 1 2.5
4. Peer groups 1 2.5
Total 40 100
Graph-4.10

Analysis: From the above table-4.10 it is found mat, 62.5perecent of respondents feel
that their HOD should be their appraiser and 32.5% of them feel that their superior should
be the appraisal and 2.5% of the respondents feel that their subordinates and peer groups
should be the appraiser.

Interpretation: This states that, the appraiser should be the head of the department, the
employee feel that he is the right person to evaluate their performance.

70
Table-4.11

Employee need to be assessed as.

No. of
S.No. Rating Scale In%
respond
1. Once in 3 months eents 8 20
2. Once in 6 months 11 27.5
3. Once in a year 21 52.5
Total 40 100

Graph-4.11

Analysis: From the above table-4.11 it is found that, 52.5% of respondents feel that their
appraisal system should be once in a year and 27.5% of the respondents feel that it should be
twice in a year (6 months) and where as 20% of the respondents feel that it should be for every 3
months.

Interpretation: Here, the employees felt that, they need to be assessed once in a year, as
they felt it is a right period of time to assess the performance .

71
Table-4.12

The performance appraisal followed in the organization makes the employees.

S.No Rating Scale No. of In%


Respondents
1 Motivating 38 95
2 De motivating 2 5

Graph-4.12

Analysis: From the above table-4.12 it is found that, 95% of respondents are motivated
towards performance appraisal followed in the organization and 5 % of the respondents
demotivates for the above statement.

So majority of the respondents i.e.. 95 % of the respondents have motivated towards the appraisal
system followed in the organization.

Interpretation: From the above study, employees felt performance appraisal system as a
motivating factor.

72
Table-4.13

Types of errors / problems have impact on performance rating in the Organization.

S. No Rating Scale No of In%


Respondents
1 Influence 9 22.5
2 Attitude 16 40
3 Biased 8 20
4 Personal Grudge 1 2.5
5 Subjectivity 5 12.5
6 Status Effect 1 2.5

Graph-4.13

Analysis: From the above table-4.13 it is observed that, appraisal system is rated by attitude
that is 40% and 22.5% of the respondents by influence and 20% by biased, 12.5% by subjectivity
and 2.5% by personal grudge and remaining 2.5% by status effect.

Interpretation: The employees opined that, attitude factor have a greater impact on the
performance appraisal system.

73
Table -4.14

Feedback on Performance is communicated after assessment of the Performance.

S.No Rating Scale No of In%


Respondents
1 Yes 19 47.5
2 No 21 52.5
Graph-4.14

Analysis: From the above table-4.14 it is found that, 52.5% of respondents disagree that feed
back on performance is communicated after assessment of the performance appraisal. And 47.5%
of the respondents agree for the above statement.

So majority of the respondents i.e. 52.5 % of the respondents have disagreed that the
feedback on performance is communicated after assessment of the performance appraisals.

74
Interpretation: Here, the some of the employees express their view that, the
performance feedback need not be communicated after the assessment, while some of them
felt that it is essential.

75
Table-4.15

Employees are aware of 360-degree appraisal.

S.No Rating Scale No of Respondents In%


1 Yes 11 27.5
2 No 29 72.5

Graph-4.15

Analysis:

From the above table-4.15 it is found that, 72.5% of respondents are aware of 360-
degree appraisal and 27.5% of die respondents are not known of 360-degree appraisal.

So majority of the respondents i.e.. 72.5 % of the respondents have agreed that they
were aware of 360 degree appraisal

Interpretation:

Here from the above study it is known that, the employees are not completely aware of 360-
degrees appraisal system.

76
SUMMARY

Human Resource Management (HRM) is the function within an organization that


focuses on recruitment of, management of, and providing direction for the people who work
in the organization. Human Resource Management can also be performed by line managers.

Human Resource Management is the organizational function that deals with


issues related to people such as compensation, hiring, performance management,
organization development, safety, wellness, benefits, employee motivation, communication,
administration, and training.

Performance appraisal refers to all the formal procedures used to evaluate an


individual, his contributions and potential. In other words, it is to plan and measure the
performance of an individual in terms of the requirement of the job or it is a process of
finding out how effective the organization has been at hiring and placing an employee.

Performance appraisal is a formal system of review and evaluation of individual or


team task performance. While evaluation of team performance is critical when teams exist in
an organization, the focus of performance appraisal in most firms remains on the individual
employees. Regardless of the emphasis, an effective appraisal evaluates accomplishments
and initiates plans for development, goals and objectives.

The mill initially started 1975 by SRI B.H VIJAYA KUMAR RAJU garu and had
tone into commercial production in 1978

The Krishna, Godavari delta known as the rice- bowl of Indian and more particularly
W.G.Dist comes under the well known networks of canal from the Godavari Anacut. Almost
all parts of the district have wet land. Cultivation with to paddy, crops per year since paddy
straw can be used to the 60% of the total raw material of delta paper mills and as it also is the
most economical of all the available inputs, one could not have asked suitable location.

77
Other raw materials such as gunny waste , cotton lintels and waste paper are produced
easily from Rajahmundry, Vizag, Eluru, Vijayawada and Hyderabad in A.P. Since the
company as well connected by broad gauge railway lines, the factory as not in the past
experienced any problem in producing these raw material.

The Delta Paper Mills Limited was established as a public limited company on 23r
may 1975. Late Sri BH.Vijay Kumar Raju and Andhra Pradesh Industrial development
corporation (APIDC) on 18th September 1975 promoted the Delta Paper Mills Limited; the
company started its commercial production on 7th April

1977.

The plant is located at Vendra, a village of Palakoderu mandal, in Andhra Pradesh.

The following reasons will explain for selecting the location.

• For bringing reputation to the native place of the founder.


• For creating employment to the rural youth.
• The availability of raw material is surrounding areas, water facilities, drainage
for disposal of effluents and its proximity to the broad gage railway line
connecting Chennai and Kolkata.
• The companies' main activity is to produce all varieties writing and printing paper. It
is mainly an agro-based industry. Its main raw material is paddy straw.
In 1976 ICICI along with IDBI, IFCI, LIC and UTI assisted the company for selling up
the product DELTA PAPER MILLS LIMITED commissioned the paper machine for
commercial production from July 1978 and pulp mill by November 1973. It earned its profits
in the second and third year of operations.

Hence by the above analysis, we can conclude that employees responded according to
their own perception and were expecting additional benefits which management has to
concentrate and take into consideration such that employees can be retained and can excel in
their profile.

78
FINDINGS

 More than half of the employees (72.5%) agree that Performance Appraisal is the
assessment of individual potential.
 Some of the employees (30%) neutral that Performance Appraisal system followed in
the organization is rational and fair.
 Some of the employees (25%) neutral that Job expectations are informed and the
superiors set the tasks.
 Most of the employees (67.5%) agree that Performance Appraisal followed in the
Organization helps to the Training and development needs of employee.

 Some of the employees (5%) disagrees that The Performance appraisal in the
organization helps to recognize the competence and potential of an individual
 Less than half of the employees (35%) disagrees that they are happy with the
assessment of performance followed in the organization.
 most of the employees (32.5%) neutral that they have been appraised fairly according
to the company's policies.
 Most of the employees (30%) disagrees that Advises and suggestions are given to the
employees during the appraisal process.
 Most of the employees (37.5%) uninterestingly accept the appraisal
feedback.
 Most of the employees (62.7%) feel that appraisal should be given by HOD.
 Most of the employees (52.5%) that they need to be assessed as once in a year.
 All most of the employees (95%) feels that the performance appraisal followed in the
organization makes the employees Motivated.
 Most of the employees (40%) think that attitude have impact on performance rating in
the Organization.
 Most of the employees (52.5%) do not agree that Performance is communicated after
assessment of the Performance.

79
SUGGESTIONS

As per the study the following are the suggestions:

 The Performance Appraisal in the organization should be in a full fledge way so that

the others will be accepting this.

 As the Performance Appraisal is helpful to the employees by the assignment of

superiors task by training & development which should be more effective so that the

other employees will also be attracted.

 The Performance Appraisal should be assist effectively to the employees as it

recognizes the competence and potential of an individual.

 Employee’s appraisal should be fairly done according to the companies policies so

that it will assist the performance of the employees.

 The company should give some advises and suggestions to the employees during the

process and should get there feedbacks about the process.

 The employees should assess and appraised by their HOD once in a year.

 The employees should be aware of 360 degrees appraisal and the organization should

follow this to motivate the employees.

80
CONCLUSION

■ The options required strong motivation to face the challenges.


■ Proper training and satisfaction at all levels will be the strongest foundation to

launch an assault on the challenges and convert the challenges to opportunities

through effective performance appraisal measures in the organization.

Industry most response like wise

 In future performance appraisal measures will have to be planned in relation to the

changes taking place.


 The performance measures leads exist both at fresh entry level as well as to

continuing education level for working personnel.


 An effective safety measures based on emerging trends suggests model for achieving

the targets which will make paper industry in India truly competitive.

81
BIBLIOGRAPHY
Books:

 Donald L. Kirkpatrick, 2006, Improving Employee Performance through Appraisal


and Coaching.
 Richard Rudman, 2003, Performance Planning and Review.
 Roger E. Herman, 1997, The Process of excelling, oak Hill press.
 P. Subba Rao, 2006, Essentials of Human Resource Management and Industrial
Relations, Himalaya Publishing House.

Journals:

 Gitam Journal of Management.


 Journal of Occupational and Environmental medicine.
 Indian Journal of Social Work.
 Indian Journal of Human Resource.

www.deltapapermills.com
www.google.com

82
ANNEXURE

1. Is Performance Appraisal helps in the assessment of individual potential?

Strongly Agree Agree

Neutral Disagree

Strongly Disagree

2. Does the Performance Appraisal system followed in the organization is rational and
fair?

Strongly Agree Agree

Neutral Disagree

Strongly Disagree

3. Whether the Job expectations are informed and the superiors set the tasks?

Strongly Agree Agree

Neutral Disagree

Strongly Disagree

83
4. Does the performance Appraisal followed in the organization helps to assess
the training and development needs of employee?

Strongly Agree Agree

Neutral Disagree

Strongly Disagree

5. Does the Performance appraisal in the organization helps to recognize the


competence and potential of an individual?

Strongly Agree Agree

Neutral Disagree

Strongly Disagree

6. Whether the employees happy with the assessment of Performance followed in the

organization?

Strongly Agree Agree

Neutral Disagree

Strongly Disagree

7. Does the Employees appraised fairly according to the company’s policies?

Strongly Agree Agree

84
Neutral Disagree

Strongly Disagree

8. Does the Advises and suggestions are given to the employees during the

appraisal process?

Strongly Agree Agree

Neutral Disagree

Strongly Disagree

9. How do the employees accept the appraisal feedback?

Positive way Negative way

Uninteresting Neutral

10.Who should be the appraiser?

Superior Subordinate

HOD Peer group

85
11. How often should an employee be assessed?

Once in 3months

Once in 6months

Once in a year

12. How the performance appraisal followed in the organization?

Motivate

Denominative

13.What types of errors / problems have impact on performance rating in


the organization?

Influence Biased Subjectivity Status Effect

Attitude Personal Grudge

14. Whether the Feedback on performance communicated after assessment of the

Performance?

Yes No

15. Are you aware of 360-degree appraisal?

Yes No

86